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|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  UNITED      STATES SECURITIES AND EXCHANGE COMMISSIONWASHINGTON,      D.C.   20549_______________________                                                     |                                                                                                                                                                                                     |
|                                                                                                                                                                               |                                                                                                                                                                                                     |
| FORM      10-Q                                                                                                                                                                     |                                                                                                                                                                                                     |
|                                                                                                                                                                               |                                                                                                                                                                                                     |
| (Mark      One)                                                                                                                                                                    |                                                                                                                                                                                                     |
|  x                                                                                                                                                                            |  QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 For      the quarterly period ended June 30,      2010 OR                              |   |
|  ¨                                                                                                                                                                       |  TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 For      the transition period from ___________________ to      ____________________  |   |
| Commission      File Number:       333-133154,      333-133076, 333-133153, 333-133155, 333-158928                                    |                                                                                                                                                                                                     |
| ING      USA ANNUITY AND LIFE INSURANCE COMPANY       (Exact name of registrant as specified in its charter)                                                             |                                                                                                                                                                                                     |
|  Iowa(State      or other jurisdiction of incorporation or organization) 1475      Dunwoody DriveWest Chester, Pennsylvania(Address      of principal executive offices) |  41-0991508(IRS      Employer Identification No.) 19380-1478(Zip      Code)                                                                                                               |
|  (610) 425-3400 (Registrant's      telephone number, including area code)                                                                                                |                                                                                                                                                                                                     |
|                                                                                                                                                                          |                                                                                                                                                                                                     |
| (Former name, former address and      former fiscal year, if changed since last report)                                                                                            |                                                                                                                                                                                                     |

| Indicate      by check mark whether the registrant (1) has filed all reports required to      be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934      during the preceding 12 months (or for such shorter period that the      registrant was required to file such reports), and (2) has been subject to      such filing requirements for the past 90 days.   Yes x      No     ¨                                                                                                       |                                                                                           |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Indicate      by check mark whether the registrant (1) has submitted electronically and      posted on its corporate Web site, if any, every Interactive Data File      required to be submitted and posted pursuant to Rule 405 of Regulation S-T      (§232.405 of this chapter) during the preceding 12 months (or for such      shorter period that the registrant was required to submit and post such      files).       Yes     ¨       No    ¨ |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Indicate      by check mark whether the registrant is a large accelerated filer, an      accelerated filer, a non-accelerated filer, or a smaller reporting      company.  See the definitions of “large accelerated filer”,      “accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the      Exchange Act.  (Check one):                                                                                                                                                                                     |                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                           |
| Large      accelerated      filer            £                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Accelerated      filer           £ | Non-accelerated      filer             x(Do      not check if a smallerreporting      company) | Smaller      reporting company     £ |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                           |
| Indicate      by check mark whether the registrant is a shell company (as defined in      Rule 12b-2 of the Exchange Act).    Yes ¨       No     x                                                                                                                                                                                                                                                                                                                                                       |                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                           |
| APPLICABLE      ONLY TO CORPORATE ISSUERS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                           |
| Indicate      the number of shares outstanding of each of the issuer's classes of common      stock, as of the latest practicable date: 250,000 shares of Common Stock,      $10 par value, as of August 6, 2010, are authorized, issued, and      outstanding, all of which were directly owned by Lion Connecticut Holdings      Inc.                                                                                                                                                                                                                                                  |                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                           |
| NOTE:      WHEREAS ING USA ANNUITY AND LIFE INSURANCE COMPANY MEETS THE CONDITIONS      SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q, THIS FORM      IS BEING FILED WITH THE REDUCED DISCLOSURE FORMAT PURSUANT TO GENERAL      INSTRUCTION H(2).                                                                                                                                                                                                                                                                                                                       |                                                                                           |

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| ING USA Annuity and Life      Insurance Company(A      wholly-owned subsidiary of Lion Connecticut Holdings Inc.)Form      10-Q for the period ended June 30, 2010  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                     |   |   |
|                                                                                                                                                                     | INDEX |   |
|                                                                                                                                                                     |   |   |
| PART    I.                                                                                                                                                               | FINANCIAL INFORMATION      (UNAUDITED) | PAGE |
|                                                                                                                                                                     |   |   |
| Item      1.                                                                                                                                                             | Financial      Statements: |   |
|                                                                                                                                                                     | Condensed      Statements of Operations | 3 |
|                                                                                                                                                                     | Condensed BalanceSheets | 4 |
|                                                                                                                                                                     | Condensed      Statements of Changes in Shareholder's Equity | 6 |
|                                                                                                                                                                     | Condensed      Statements of Cash Flows | 8 |
|                                                                                                                                                                     | Notes to      Condensed Financial Statements | 9 |
|                                                                                                                                                                     |   |   |
| Item    2.                                                                                                                                                               | Management’s Narrative      Analysis of the Results of Operations andFinancial      Condition |  61 |
|                                                                                                                                                                     |   |   |
| Item    4.                                                                                                                                                               | Controls and      Procedures | 104 |
|                                                                                                                                                                     |   |   |
| PART      II.                                                                                                                                                            | OTHER      INFORMATION |   |
|                                                                                                                                                                     |   |   |
| Item      1.                                                                                                                                                             | Legal      Proceedings | 105 |
|                                                                                                                                                                     |   |   |
| Item      1A.                                                                                                                                                            | Risk      Factors | 105 |
|                                                                                                                                                                     |   |   |
| Item      6.                                                                                                                                                             | Exhibits | 111 |
|                                                                                                                                                                     |   |   |
| Signature                                                                                                                                                                |   | 112 |
|                                                                                                                                                                     |   |   |
| Exhibit      Index                                                                                                                                                       |   | 113 |

----

| ING USA Annuity and Life Insurance Company                         |   |
|--------------------------------------------------------------------------------------------------|--------|
| (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) |   |
|                                                                                             |   |
|                                                                                             |   |
| PART I.          FINANCIAL INFORMATION (UNAUDITED)            |   |
|                                                                                             |   |
| Item 1.       Financial Statements                  |   |
|                                                                                             |   |
|                                                                                             |   |
| Condensed Statements of Operations                                                |   |
| (Unaudited)                                                                                      |   |
| (In millions)                                                                               |   |
|                                                                                             |   | Three Months Ended June 30, |   |   | Six Months Ended June 30, |   |
|                                                                                             |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Revenues:                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net investment income                                                                  |   | $ | 343.5 |   |   | $ | 323.8 |   |   | $ | 663.1 |   |   | $ | 704.5 |   |
| Fee income                                                                                  |   |   | 274.1 |   |   |   | 227.5 |   |   |   | 542.3 |   |   |   | 426.9 |   |
| Premiums                                                                                         |   |   | 226.8 |   |   |   | 142.3 |   |   |   | 276.4 |   |   |   | 256.3 |   |
| Net realized capital gains (losses):                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total other-than-temporary impairment losses                                      |   |   | (48.1 | ) |   |   | (205.7 | ) |   |   | (119.7 | ) |   |   | (506.0 | ) |
| Portion of other-than-temporary impairment losses                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| recognized in Other comprehensive income (loss)                         |   |   | 10.5 |   |   |   | 84.9 |   |   |   | 56.5 |   |   |   | 84.9 |   |
| Net other-than-temporary impairments                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| recognized in earnings                                                                 |   |   | (37.6 | ) |   |   | (120.8 | ) |   |   | (63.2 | ) |   |   | (421.1 | ) |
| Other net realized capital gains (losses)                               |   |   | 659.7 |   |   |   | (781.9 | ) |   |   | 422.8 |   |   |   | (633.4 | ) |
| Total net realized capital gains (losses)                               |   |   | 622.1 |   |   |   | (902.7 | ) |   |   | 359.6 |   |   |   | (1,054.5 | ) |
| Other (expense) income                                                                 |   |   | (0.1 | ) |   |   | (0.1 | ) |   |   | - |   |   |   | 1.3 |   |
| Total revenue                                                                               |   |   | 1,466.4 |   |   |   | (209.2 | ) |   |   | 1,841.4 |   |   |   | 334.5 |   |
| Benefits and expenses:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest credited and other benefits to contractowners             |   |   | 1,296.3 |   |   |   | 114.5 |   |   |   | 1,481.2 |   |   |   | 614.7 |   |
| Operating expenses                                                                          |   |   | 101.7 |   |   |   | 89.0 |   |   |   | 203.1 |   |   |   | 177.3 |   |
| Net amortization of deferred policy acquisition costs         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and value of  business acquired                                         |   |   | 156.0 |   |   |   | (438.2 | ) |   |   | 221.6 |   |   |   | (169.6 | ) |
| Interest expense                                                                            |   |   | 8.0 |   |   |   | 9.1 |   |   |   | 16.0 |   |   |   | 16.4 |   |
| Other expense                                                                               |   |   | 11.1 |   |   |   | 17.6 |   |   |   | 20.9 |   |   |   | 24.3 |   |
| Total benefits and expenses                                                       |   |   | 1,573.1 |   |   |   | (208.0 | ) |   |   | 1,942.8 |   |   |   | 663.1 |   |
| Loss before income taxes                                                          |   |   | (106.7 | ) |   |   | (1.2 | ) |   |   | (101.4 | ) |   |   | (328.6 | ) |
| Income tax (benefit) expense                                                      |   |   | (54.9 | ) |   |   | 0.9 |   |   |   | (56.2 | ) |   |   | (90.9 | ) |
| Net loss                                                                                    |   | $ | (51.8 | ) |   | $ | (2.1 | ) |   | $ | (45.2 | ) |   | $ | (237.7 | ) |

----

| ING USA Annuity and Life Insurance Company                                       |   |
|----------------------------------------------------------------------------------------------------------------|--------|
| (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)               |   |
|                                                                                                           |   |
| Condensed Balance Sheets                                                                             |   |
| (In millions, except share data)                                                           |   |
|                                                                                                           |   |
|                                                                                                           |   |
|                                                                                                           |   | As of |   |   | As of |   |
|                                                                                                           |   | June 30, |   |   | December 31, |   |
|                                                                                                           |   | 2010 |   |   | 2009 |   |
|                                                                                                           |   | (Unaudited) |   |   |   |   |
| Assets                                                                                                         |   |   |   |   |   |   |
| Investments:                                                                                                   |   |   |   |   |   |   |
| Fixed maturities, available-for-sale, at fair value                              |   |   |   |   |   |   |
| (amortized cost of $19,822.9 at 2010 and $17,724.3 at 2009 ) |   | $ | 20,176.8 |   |   | $ | 17,156.5 |   |
| Equity securities, available-for-sale, at fair value                                  |   |   |   |   |   |   |   |   |
| (cost of $125.2 at 2010 and $150.8 at 2009)                            |   |   | 128.9 |   |   |   | 154.3 |   |
| Short-term investments                                                                                    |   |   | 2,133.2 |   |   |   | 2,044.0 |   |
| Mortgage loans on real estate                                                              |   |   | 3,125.1 |   |   |   | 3,413.2 |   |
| Policy loans                                                                                              |   |   | 127.4 |   |   |   | 131.6 |   |
| Loan - Dutch State obligation                                                              |   |   | 898.5 |   |   |   | 1,026.0 |   |
| Limited partnerships/corporations                                                                         |   |   | 272.8 |   |   |   | 252.6 |   |
| Derivatives                                                                                                    |   |   | 383.1 |   |   |   | 317.4 |   |
| Other investments                                                                                         |   |   | 23.5 |   |   |   | 23.9 |   |
| Securities pledged (amortized cost of $641.8 at 2010                   |   |   |   |   |   |   |   |   |
| and $1,079.4 at 2009)                                                                           |   |   | 677.6 |   |   |   | 1,092.5 |   |
| Total investments                                                                                         |   |   | 27,946.9 |   |   |   | 25,612.0 |   |
| Cash and cash equivalents                                                                       |   |   | 194.2 |   |   |   | 37.8 |   |
| Short-term investments under securities loan agreement                                |   |   | 72.3 |   |   |   | 169.0 |   |
| Accrued investment income                                                                            |   |   | 209.9 |   |   |   | 187.3 |   |
| Receivable for securities sold                                                                  |   |   | 63.3 |   |   |   | 7.6 |   |
| Premium receivable                                                                                        |   |   | 54.7 |   |   |   | 86.9 |   |
| Deposits and reinsurance recoverable                                                            |   |   | 3,502.2 |   |   |   | 3,350.0 |   |
| Deferred policy acquisition costs                                                               |   |   | 3,208.5 |   |   |   | 3,718.0 |   |
| Value of business acquired                                                                      |   |   | 76.0 |   |   |   | 113.4 |   |
| Sales inducements to contractowners                                                             |   |   | 729.6 |   |   |   | 810.2 |   |
| Short-term loan to affiliate                                                                    |   |   | 442.0 |   |   |   | 545.5 |   |
| Due from affiliates                                                                                  |   |   | 29.6 |   |   |   | 816.3 |   |
| Current income tax recoverable                                                                  |   |   | 8.1 |   |   |   | - |   |
| Other assets                                                                                              |   |   | 392.1 |   |   |   | 398.7 |   |
| Assets held in separate accounts                                                           |   |   | 39,856.4 |   |   |   | 42,996.1 |   |
| Total assets                                                                                              |   | $ | 76,785.8 |   |   | $ | 78,848.8 |   |

----

|  ING USA Annuity and Life Insurance Company                   |   |
|--------------------------------------------------------------------------------------------------|--------|
| (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) |   |
|                                                                                             |   |
| Condensed Balance Sheets                                                               |   |
| (In millions, except share data)                                             |   |
|                                                                                             |   |
|                                                                                             |   |
|                                                                                             |   | As of |   |   | As of |   |
|                                                                                             |   | June 30, |   |   | December 31, |   |
|                                                                                             |   | 2010 |   |   | 2009 |   |
|                                                                                             |   | (Unaudited) |   |   |   |   |
| Liabilities and Shareholder's Equity                                              |   |   |   |   |   |   |
| Future policy benefits and claims reserves                              |   | $ | 27,591.3 |   |   | $ | 27,044.7 |   |
| Payable for securities purchased                                                  |   |   | 124.1 |   |   |   | 115.7 |   |
| Payables under securities loan agreement,                               |   |   |   |   |   |   |   |   |
| including collateral held                                                              |   |   | 121.1 |   |   |   | 201.1 |   |
| Borrowed money                                                                              |   |   | - |   |   |   | 311.1 |   |
| Notes to affiliates                                                                    |   |   | 435.0 |   |   |   | 435.0 |   |
| Due to affiliates                                                                      |   |   | 95.0 |   |   |   | 122.5 |   |
| Current income taxes                                                                   |   |   | - |   |   |   | 69.0 |   |
| Deferred income taxes                                                                  |   |   | 661.1 |   |   |   | 767.5 |   |
| Other liabilities                                                                           |   |   | 4,561.5 |   |   |   | 4,045.2 |   |
| Liabilities related to separate accounts                                     |   |   | 39,856.4 |   |   |   | 42,996.1 |   |
| Total liabilities                                                                           |   |   | 73,445.5 |   |   |   | 76,107.9 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Shareholder's equity:                                                                       |   |   |   |   |   |   |   |   |
| Common stock (250,000 shares authorized, issued                    |   |   |   |   |   |   |   |   |
| and outstanding; $10 per share value)                                   |   |   | 2.5 |   |   |   | 2.5 |   |
| Additional paid-in capital                                                             |   |   | 5,412.5 |   |   |   | 5,172.7 |   |
| Accumulated other comprehensive loss                                              |   |   | (108.0 | ) |   |   | (512.8 | ) |
| Retained earnings (deficit)                                                            |   |   | (1,966.7 | ) |   |   | (1,921.5 | ) |
| Total shareholder's equity                                                             |   |   | 3,340.3 |   |   |   | 2,740.9 |   |
| Total liabilities and shareholder's equity                                   |   | $ | 76,785.8 |   |   | $ | 78,848.8 |   |

----

| ING USA Annuity and Life Insurance Company                         |   |
|--------------------------------------------------------------------------------------------------|--------|
| (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) |   |
|                                                                                             |   |
| Condensed Statements of Changes in Shareholder’s Equity      |   |
| (Unaudited)                                                                                      |   |
| (In millions)                                                                               |   |
|                                                                                             |   |
|                                                                                             |   |
|                                                                                             |   |   |   |   |   |   |   | Accumulated |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   | Additional |   |   | Other |   |   | Retained |   |   | Total |   |
|                                                                                             |   | Common |   |   | Paid-In |   |   | Comprehensive |   |   | Earnings |   |   | Shareholder's |   |
|                                                                                             |   | Stock |   |   | Capital |   |   | Loss |   |   | (Deficit) |   |   | Equity |   |
| Balance at January 1, 2009                                                   |   | $ | 2.5 |   |   | $ | 4,335.4 |   |   | $ | (1,333.7 | ) |   | $ | (2,236.7 | ) |   | $ | 767.5 |   |
| Activity during the three months ended                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March 31, 2009:                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive income                                                             |   |   | - |   |   |   | - |   |   |   | 343.8 |   |   |   | (235.6 | ) |   |   | 108.2 |   |
| Contribution of capital                                                                |   |   | - |   |   |   | 835.0 |   |   |   | - |   |   |   | - |   |   |   | 835.0 |   |
| Employee share-based payments                                                          |   |   | - |   |   |   | 0.6 |   |   |   | - |   |   |   | - |   |   |   | 0.6 |   |
| Balance at March 31, 2009                                                    |   |   | 2.5 |   |   |   | 5,171.0 |   |   |   | (989.9 | ) |   |   | (2,472.3 | ) |   |   | 1,711.3 |   |
| Cumulative effect of change in accounting                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| principle, net of DAC and tax                                           |   |   | - |   |   |   | - |   |   |   | (312.0 | ) |   |   | 312.0 |   |   |   | - |   |
| Balance at April 1, 2009                                                     |   |   | 2.5 |   |   |   | 5,171.0 |   |   |   | (1,301.9 | ) |   |   | (2,160.3 | ) |   |   | 1,711.3 |   |
| Comprehensive income:                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2.1 | ) |   |   | (2.1 | ) |
| Other comprehensive income (loss), net of tax:                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change in net unrealized capital gains (losses)               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| on securities ($602.7 pretax), including                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| change in tax valuation allowance of $(15.9)                       |   |   | - |   |   |   | - |   |   |   | 405.5 |   |   |   | - |   |   |   | 405.5 |   |
| Portion of other-than-temporary impairment                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| losses recognized in other comprehensive                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| income (loss)                                                                               |   |   | - |   |   |   | - |   |   |   | (84.9 | ) |   |   | - |   |   |   | (84.9 | ) |
| Pension liability ($0.2 pretax)                                                   |   |   | - |   |   |   | - |   |   |   | 0.1 |   |   |   | - |   |   |   | 0.1 |   |
| Total comprehensive income                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 318.6 |   |
| Employee share-based payments                                                          |   |   | - |   |   |   | 0.7 |   |   |   | - |   |   |   | - |   |   |   | 0.7 |   |
| Balance at June 30, 2009                                                     |   | $ | 2.5 |   |   | $ | 5,171.7 |   |   | $ | (981.2 | ) |   | $ | (2,162.4 | ) |   | $ | 2,030.6 |   |

----

| ING USA Annuity and Life Insurance Company                         |   |
|--------------------------------------------------------------------------------------------------|--------|
| (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) |   |
|                                                                                             |   |
| Condensed Statements of Changes in Shareholder’s Equity      |   |
| (Unaudited)                                                                                      |   |
| (In millions)                                                                               |   |
|                                                                                             |   |
|                                                                                             |   |
|                                                                                             |   |   |   |   |   |   | Accumulated |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   | Additional |   | Other |   |   | Retained |   | Total |   |
|                                                                                             |   | Common |   |   | Paid-In |   | Comprehensive |   |   | Earnings |   | Shareholder's |   |
|                                                                                             |   | Stock |   |   | Capital |   | Loss |   |   | (Deficit) |   | Equity |   |
| Balance at January 1, 2010                                                   |   | $ | 2.5 |   |   | $ | 5,172.7 |   |   | $ | (512.8 | ) |   | $ | (1,921.5 | ) |   | $ | 2,740.9 |   |
| Comprehensive income:                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                    |   |   | - |   |   |   | - |   |   |   |   |   |   |   | (45.2 | ) |   |   | (45.2 | ) |
| Other comprehensive income (loss), net of tax:                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change in net unrealized capital gains (losses)               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| on securities ($454.3 pretax), including                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| decrease in valuation allowance of $(131.4)                             |   |   | - |   |   |   | - |   |   |   | 438.5 |   |   |   | - |   |   |   | 438.5 |   |
| Portion of other-than-temporary impairment                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| losses recognized in other comprehensive                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| income (loss)                                                                               |   |   | - |   |   |   | - |   |   |   | (56.5 | ) |   |   | - |   |   |   | (56.5 | ) |
| Change in other-than-temporary impairment                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| losses recognized in other comprehensive                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| income (loss)                                                                               |   |   | - |   |   |   | - |   |   |   | 22.9 |   |   |   | - |   |   |   | 22.9 |   |
| Pension liability ($0.2 pretax)                                                   |   |   | - |   |   |   | - |   |   |   | (0.1 | ) |   |   | - |   |   |   | (0.1 | ) |
| Total comprehensive income                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 359.6 |   |
| Contribution of capital                                                                |   |   | - |   |   |   | 239.0 |   |   |   | - |   |   |   | - |   |   |   | 239.0 |   |
| Employee share-based payments                                                          |   |   | - |   |   |   | 0.8 |   |   |   | - |   |   |   | - |   |   |   | 0.8 |   |
| Balance at June 30, 2010                                                     |   | $ | 2.5 |   |   | $ | 5,412.5 |   |   | $ | (108.0 | ) |   | $ | (1,966.7 | ) |   | $ | 3,340.3 |   |

----

| ING USA Annuity and Life Insurance Company                         |   |
|--------------------------------------------------------------------------------------------------|--------|
| (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) |   |
|                                                                                             |   |
| Condensed Statements of Cash Flows                                           |   |
| (Unaudited)                                                                                      |   |
| (In millions)                                                                               |   |
|                                                                                             |   |
|                                                                                             |   |
|                                                                                             |   | Six Months Ended June 30, |   |
|                                                                                             |   | 2010 |   |   | 2009 |   |
| Net cash provided by operating activities                               |   | $ | 1,661.6 |   |   | $ | 1,090.1 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Cash Flows from Investing Activities:                                        |   |   |   |   |   |   |   |   |
| Proceeds from the sale, maturity, or redemption of:           |   |   |   |   |   |   |   |   |
| Fixed maturities, available-for-sale                                                   |   |   | 3,277.3 |   |   |   | 2,686.9 |   |
| Equity securities, available-for-sale                                                  |   |   | 65.2 |   |   |   | 54.1 |   |
| Mortgage loans on real estate                                                |   |   | 368.3 |   |   |   | 200.7 |   |
| Limited partnerships/corporations                                                           |   |   | 0.4 |   |   |   | 11.0 |   |
| Derivatives                                                                                      |   |   | (3.3 | ) |   |   | 230.3 |   |
| Acquisition of:                                                                             |   |   |   |   |   |   |   |   |
| Fixed maturities, available-for-sale                                                   |   |   | (4,983.4 | ) |   |   | (204.8 | ) |
| Equity securities, available-for-sale                                                  |   |   | (42.8 | ) |   |   | (8.3 | ) |
| Mortgage loans on real estate                                                |   |   | (76.5 | ) |   |   | (21.1 | ) |
| Limited partnerships/corporations                                                           |   |   | (20.5 | ) |   |   | (15.4 | ) |
| Derivatives                                                                                      |   |   | (35.0 | ) |   |   | (1,027.9 | ) |
| Short-term investments, net                                                            |   |   | (89.3 | ) |   |   | (1,492.1 | ) |
| Loan-Dutch State obligation, payments received                               |   |   | 127.5 |   |   |   | 82.8 |   |
| Policy loans, net                                                                      |   |   | 4.1 |   |   |   | 1.1 |   |
| Collateral held (delivered)                                                            |   |   | 16.7 |   |   |   | (6.2 | ) |
| Other investments, net                                                                 |   |   | 0.5 |   |   |   | 0.4 |   |
| Net cash (used in) provided by investing activities           |   |   | (1,390.8 | ) |   |   | 491.5 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Cash Flows from Financing Activities:                                        |   |   |   |   |   |   |   |   |
| Deposits received for investment contracts                                   |   |   | 1,081.7 |   |   |   | 1,944.2 |   |
| Maturities and withdrawals from investment contracts                    |   |   | (1,301.2 | ) |   |   | (4,690.7 | ) |
| Block of deposits coinsured to affiliate                                |   |   | 73.5 |   |   |   | 138.4 |   |
| Reinsurance recoverable on investment contracts                              |   |   | 0.2 |   |   |   | 570.6 |   |
| Short-term repayments of repurchase agreements, net                     |   |   | (311.1 | ) |   |   | (175.6 | ) |
| Short-term loans to affiliates                                                    |   |   | 103.5 |   |   |   | (753.6 | ) |
| Contribution of capital                                                                |   |   | 239.0 |   |   |   | 835.0 |   |
| Net cash used in financing activities                                   |   |   | (114.4 | ) |   |   | (2,131.7 | ) |
| Net increase (decrease) in cash and cash equivalents          |   |   | 156.4 |   |   |   | (550.1 | ) |
| Cash and cash equivalents, beginning of period                     |   |   | 37.8 |   |   |   | 610.8 |   |
| Cash and cash equivalents, end of period                           |   | $ | 194.2 |   |   | $ | 60.7 |   |

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

----

----

| 1.   | Organization      and Significant Accounting Policies |
|----------------|-------------------------------------------------------|

----

----

| 2.   | Recently      Adopted Accounting Standards |
|----------------|--------------------------------------------|

----

----

| §   | Significant      transfers in and out of Level 1 and Level 2 fair value measurements and      the reason for the transfers; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| §   | Purchases,      sales, issuances, and settlement, in the Level 3 fair value measurements      reconciliation on a gross basis; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| §   | Fair      value measurement disclosures for each class of assets and liabilities      (i.e., disaggregated); and |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| §   | Valuation      techniques and inputs for both recurring and nonrecurring fair value      measurements that fall in either Level 2 or Level 3 fair value      measurements. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Removes      the quantitative-based assessment for consolidation of VIEs and, instead,      requires a qualitative assessment of whether an entity has the power to      direct the VIE’s activities, and whether the entity has the obligation to      absorb losses or the right to reserve benefits that could be significant      to the VIE; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Requires      an ongoing reassessment of whether an entity is the primary beneficiary of      a VIE. |
|--------------------|------------------------------------------------------------------------------------------------------|

----

----

| §   | Consider      the transferor’s continuing involvement in assets, limiting the      circumstances in which a financial asset should be derecognized when the      transferor has not transferred the entire asset to an entity that is not      consolidated; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Account      for the transfer as a sale only if an entity transfers an entire financial      asset and surrenders controls, unless the transfer meets the conditions      for a participating interest; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Recognize      and initially measure at fair value all assets obtained and liabilities      incurred as a result of a transfer of financial assets accounted for as a      sale. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| §   | The      period after the balance sheet date during which an entity should evaluate      events or transactions for potential recognition or disclosure in the      financial statements; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | The      circumstances under which an entity should recognize such events or      transactions in its financial statements;and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| §   | Disclosures      regarding such events or transactions and the date through which an entity      has evaluated subsequent events. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

----

----

| §   | Noncredit      related impairments to be recognized in other comprehensive income (loss),      if management asserts that it does not have the intent to sell the      security and that it is more likely than not that the entity will not have      to sell the security before recovery of the amortized cost      basis; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Total      other-than-temporary impairments (“OTTI”) to be presented in the Statement      of Operations with an offset recognized in other comprehensive income      (loss) for the noncredit relatedimpairments; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | A      cumulative effect adjustment as of the beginning of the period of adoption      to reclassify the noncredit component of a previously recognized      other-than-temporary impairment from Retained earnings (deficit) to      Accumulated other comprehensive income (loss);  and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Additional      interim disclosures for debt and equity securities regarding types of      securities held, unrealized losses, and other-than-temporary      impairments. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                         |   | Change in      |   |
|--------------------------------------------------------------|--------|---------------------|--------|
|                                                         |   | Amortized Cost |   |
| Fixed maturities:                                       |   |                |   |
| U.S. corporate, state and municipalities |   | $                   | 53.3   |   |
| Foreign                                                      |   |                | 69.2   |   |
| Residential mortgage-backed                             |   |                | 64.3   |   |
| Commercial mortgage-backed                              |   |                | 92.6   |   |
| Other asset-backed                                      |   |                | 123.1  |   |
| Total investments, available-for-sale              |   | $                   | 402.5  |   |

----

----

| §   | How      and why derivative instruments areused; |
|--------------------|--------------------------------------------------|

| §   | How      derivative instruments and related hedged items are accounted for under US      GAAP for derivative and hedging activities;and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| §   | How      derivative instruments and related hedged items affect an entity’s      financial statements. |
|--------------------|--------------------------------------------------------------------------------------------------------------|

----

----

| 3.   | New      Accounting Pronouncements |
|----------------|------------------------------------|

----

----

| 4.   | Financial      Instruments |
|----------------|----------------------------|

| §   | Level      1 - Unadjusted quoted prices for identical assets or liabilities in an      active market. |
|--------------------|-------------------------------------------------------------------------------------------------------|

| §   | Level      2 - Quoted prices in markets that are not active or inputs that are      observable either directly or indirectly for substantially the full term      of the asset or liability. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

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

| §   | Level      3 - Prices or valuation techniques that require inputs that are both      unobservable and significant to the overall fair value      measurement.  These valuations, whether derived internally or      obtained from a third party, use critical assumptions that are not widely      available to estimate market participant expectations in valuing the asset      or liability. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|         |                                                                                                                                                                                                                                 |                                                         |                                                         |                                                                                                    |                                                                                                    | 2010                                                                                                    |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                 |                                                         |                                                         |                                                                                                    |                                                                                                    |                                                                                                    | Level 1 |   |   | Level 2 |   |   | Level 3(1) |   |   | Total |
| Assets:      |                                                                                                                                                                                                                                 |                                                         |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |   |
|         | Fixed maturities, available-for-sale,                                                                                                                                                                                 |                                                         |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |
|         |                                                                                                                                                                                                                                 | including securities pledged:                      |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |   |
|         |                                                                                                                                                                                                                                 |                                                         | U.S. Treasuries                                         | $                                                                                                       |      3,078.3                                                              |                                                                                                    | $ |           97.4  |   | $ |                -   |   | $ |      3,175.7  |
|         |                                                                                                                                                                                                                                 |                                                         | U.S. government agencies and authorities |                                                                                                    |                -   |                                                                                                    |   |           43.5  |   |   |                -   |   |   |           43.5  |
|         |                                                                                                                                                                                                                                 |                                                         | U.S. corporate, state and municipalities |                                                                                                    |                -   |                                                                                                    |   |      7,006.8  |   |   |           67.0  |   |   |      7,073.8  |
|         |                                                                                                                                                                                                                                 |                                                         | Foreign                                                      |                                                                                                    |                -   |                                                                                                    |   |      4,035.1  |   |   |           55.3  |   |   |      4,090.4  |
|         |                                                                                                                                                                                                                                 |                                                         | Residential mortgage-backed securities             |                                                                                                    |                -   |                                                                                                    |   |      1,924.8  |   |   |         148.3  |   |   |      2,073.1  |
|         |                                                                                                                                                                                                                                 |                                                         | Commercial mortgage-backed securities              |                                                                                                    |                -   |                                                                                                    |   |      2,458.7  |   |   |                -   |   |   |      2,458.7  |
|         |                                                                                                                                                                                                                                 |                                                         | Other asset-backed securities                      |                                                                                                    |                -   |                                                                                                    |   |      1,259.8  |   |   |         679.4  |   |   |      1,939.2  |
|         | Equity securities, available-for-sale                                                                                                                                                                                      |                                                         |         115.9   |                                                                                                    |                                                                                                    |                -   |   |   |           13.0  |   |   |         128.9  |
|         | Derivatives:                                                                                                                                                                                                                         |                                                         |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |
|         |                                                                                                                                                                                                                                 | Interest rate contracts                            |                                                         |             6.3                        |                                                                                                    |                                                                                                    |         193.0  |   |   |                -   |   |   |         199.3  |
|         |                                                                                                                                                                                                                                 | Foreign exchange contracts                         |                                                         |                -   |                                                                                                    |                                                                                                    |           12.5  |   |   |                -   |   |   |           12.5  |
|         |                                                                                                                                                                                                                                 | Equity contracts                                        |                                                         |           41.3                                   |                                                                                                    |                                                                                                    |                -   |   |   |         129.5  |   |   |         170.8  |
|         |                                                                                                                                                                                                                                 | Credit contracts                                        |                                                         |                -   |                                                                                                    |                                                                                                    |             0.5  |   |   |                -   |   |   |             0.5  |
|         | Cash and cash equivalents, short-term                                                                                                                                                                       |                                                         |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |
|         |                                                                                                                                                                                                                                 | investments, and short-term investments  |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |   |
|         |                                                                                                                                                                                                                                 | under securities loan agreement               |                                                         |      2,399.7                                                              |                                                                                                    |                                                                                                    |                -   |   |   |                -   |   |   |      2,399.7  |
|         | Assets held in separate accounts                                                                                                                                                                                 |                                                         |    39,856.4                              |                                                                                                    |                                                                                                    |                -   |   |   |                -   |   |   |    39,856.4  |
| Total        |                                                                                                                                                                                                                                 |                                                         |                                                         | $                                                                                                       |    45,497.9                                                                         |                                                                                                    | $ |    17,032.1  |   | $ |      1,092.5  |   | $ |    63,622.5  |
|         |                                                                                                                                                                                                                                 |                                                         |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |   |   |   |   |
| Liabilities: |                                                                                                                                                                                                                                 |                                                         |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |
|         | Investment contract guarantees:                                                                                                                                                                                            |                                                         |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |
|         |                                                                                                                                                                                                                                 | Fixed Indexed Annuities ("FIA")               | $                                                            |                -   |                                                                                                    | $                                                                                                       |                -   |   | $ |         977.3  |   | $ |         977.3  |
|         |                                                                                                                                                                                                                                 | Guaranteed Minimum Withdrawal and        |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |   |
|         |                                                                                                                                                                                                                                 |                                                         | Accumulation Benefits ("GMWB"                 |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |   |   |
|         |                                                                                                                                                                                                                                 |                                                         | and "GMAB")                                             |                                                                                                    |                -   |                                                                                                    |   |                -   |   |   |           97.1  |   |   |           97.1  |
|         |                                                                                                                                                                                                                                 | Embedded derivative on reinsurance            |                                                         |                -   |                                                                                                    |                                                                                                    |         108.5  |   |   |                -   |   |   |         108.5  |
|         | Derivatives:                                                                                                                                                                                                                         |                                                         |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |
|         |                                                                                                                                                                                                                                 | Interest rate contracts                            |                                                         |                -   |                                                                                                    |                                                                                                    |         341.7  |   |   |                -   |   |   |         341.7  |
|         |                                                                                                                                                                                                                                 | Foreign exchange contracts                         |                                                         |                -   |                                                                                                    |                                                                                                    |           31.1  |   |   |                -   |   |   |           31.1  |
|         |                                                                                                                                                                                                                                 | Equity contracts                                        |                                                         |             5.1                        |                                                                                                    |                                                                                                    |                -   |   |   |           16.2  |   |   |           21.3  |
|         |                                                                                                                                                                                                                                 | Credit contracts                                        |                                                         |                -   |                                                                                                    |                                                                                                    |             8.6  |   |   |           46.6  |   |   |           55.2  |
| Total        |                                                                                                                                                                                                                                 |                                                         |                                                         | $                                                                                                       |             5.1                        |                                                                                                    | $ |         489.9  |   | $ |      1,137.2  |   | $ |      1,632.2  |
|         | (1)Level 3 assets and liabilities accounted for 1.7% and 69.7% of total assets and liabilities measured at fair value on a  |
|         | recurring basis, respectively. Excluding separate accounts assets for which the policyholder bears the risk, the Level 3                        |
|         | assets in relation to total assets       measured at fair value on a recurring basis totaled 4.6%.                                                        |

----

----

|         |                                                                                                                                                                                                                               |                                                         |                                                         |                                                                                                    |                                                                                                    | 2009                                                                                                    |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                               |                                                         |                                                         |                                                                                                    |                                                                                                    |                                                                                                    | Level 1 |   |   | Level 2 |   |   | Level 3(1) |   |   | Total |
| Assets:      |                                                                                                                                                                                                                               |                                                         |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |   |
|         | Fixed maturities, available-for-sale,                                                                                                                                                                               |                                                         |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |
|         |                                                                                                                                                                                                                               | including securities pledged:                      |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |   |
|         |                                                                                                                                                                                                                               |                                                         | U.S. Treasuries                                         | $                                                                                                       |      4,123.5                                                              |                                                                                                    | $ |                -   |   | $ |                -   |   | $ |      4,123.5  |
|         |                                                                                                                                                                                                                               |                                                         | U.S. government agencies and authorities |                                                                                                    |                -   |                                                                                                    |   |           24.6  |   |   |                -   |   |   |           24.6  |
|         |                                                                                                                                                                                                                               |                                                         | U.S. corporate, state and municipalities |                                                                                                    |                -   |                                                                                                    |   |      5,559.2  |   |   |                -   |   |   |      5,559.2  |
|         |                                                                                                                                                                                                                               |                                                         | Foreign                                                      |                                                                                                    |                -   |                                                                                                    |   |      3,318.9  |   |   |                -   |   |   |      3,318.9  |
|         |                                                                                                                                                                                                                               |                                                         | Residential mortgage-backed securities             |                                                                                                    |                -   |                                                                                                    |   |         659.8  |   |   |      1,088.2  |   |   |      1,748.0  |
|         |                                                                                                                                                                                                                               |                                                         | Commercial mortgage-backed securities              |                                                                                                    |                -   |                                                                                                    |   |      2,589.6  |   |   |                -   |   |   |      2,589.6  |
|         |                                                                                                                                                                                                                               |                                                         | Other asset-backed securities                      |                                                                                                    |                -   |                                                                                                    |   |         461.3  |   |   |         423.9  |   |   |         885.2  |
|         | Equity securities, available-for-sale                                                                                                                                                                                    |                                                         |         149.8   |                                                                                                    |                                                                                                    |                -   |   |   |             4.5  |   |   |         154.3  |
|         | Derivatives:                                                                                                                                                                                                                       |                                                         |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |
|         |                                                                                                                                                                                                                               | Interest rate contracts                            |                                                         |                -   |                                                                                                    |                                                                                                    |           44.6  |   |   |                -   |   |   |           44.6  |
|         |                                                                                                                                                                                                                               | Foreign exchange contracts                         |                                                         |                -   |                                                                                                    |                                                                                                    |           14.2  |   |   |                -   |   |   |           14.2  |
|         |                                                                                                                                                                                                                               | Equity contracts                                        |                                                         |           42.8                                   |                                                                                                    |                                                                                                    |                -   |   |   |         215.5  |   |   |         258.3  |
|         |                                                                                                                                                                                                                               | Credit contracts                                        |                                                         |                -   |                                                                                                    |                                                                                                    |             0.3  |   |   |                -   |   |   |             0.3  |
|         |                                                                                                                                                                                                                               | Embedded derivative on reinsurance            |                                                         |                -   |                                                                                                    |                                                                                                    |           38.7  |   |   |                -   |   |   |           38.7  |
|         | Cash and cash equivalents, short-term                                                                                                                                                                     |                                                         |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |
|         |                                                                                                                                                                                                                               | investments, and short-term investments  |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |   |
|         |                                                                                                                                                                                                                               | under securities loan agreement               |                                                         |      2,242.8                                                              |                                                                                                    |                                                                                                    |             8.0  |   |   |                -   |   |   |      2,250.8  |
|         | Assets held in separate accounts                                                                                                                                                                               |                                                         |    42,996.1                              |                                                                                                    |                                                                                                    |                -   |   |   |                -   |   |   |    42,996.1  |
| Total        |                                                                                                                                                                                                                               |                                                         |                                                         | $                                                                                                       |    49,555.0                                                                         |                                                                                                    | $ |    12,719.2  |   | $ |      1,732.1  |   | $ |    64,006.3  |
|         |                                                                                                                                                                                                                               |                                                         |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |   |   |   |   |
| Liabilities: |                                                                                                                                                                                                                               |                                                         |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |
|         | Investment contract guarantees:                                                                                                                                                                                          |                                                         |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |
|         |                                                                                                                                                                                                                               | Fixed Indexed Annuities ("FIA")               | $                                                            |                -   |                                                                                                    | $                                                                                                       |                -   |   | $ |         927.2  |   | $ |         927.2  |
|         |                                                                                                                                                                                                                               | Guaranteed Minimum Withdrawal and        |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |   |
|         |                                                                                                                                                                                                                               |                                                         | Accumulation Benefits ("GMWB"                 |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |   |   |
|         |                                                                                                                                                                                                                               |                                                         | and "GMAB")                                             |                                                                                                    |                -   |                                                                                                    |   |                -   |   |   |           73.9  |   |   |           73.9  |
|         | Derivatives:                                                                                                                                                                                                                       |                                                         |                                                         |                                                                                                    |                                                                                                    |                                                                                                    |   |   |   |   |   |   |
|         |                                                                                                                                                                                                                               | Interest rate contracts                            |                                                         |                -   |                                                                                                    |                                                                                                    |         325.2  |   |   |                -   |   |   |         325.2  |
|         |                                                                                                                                                                                                                               | Foreign exchange contracts                         |                                                         |                -   |                                                                                                    |                                                                                                    |           53.0  |   |   |                -   |   |   |           53.0  |
|         |                                                                                                                                                                                                                               | Equity contracts                                        |                                                         |             3.2                        |                                                                                                    |                                                                                                    |                -   |   |   |           13.1  |   |   |           16.3  |
|         |                                                                                                                                                                                                                               | Credit contracts                                        |                                                         |                -   |                                                                                                    |                                                                                                    |           15.4  |   |   |           90.5  |   |   |         105.9  |
| Total        |                                                                                                                                                                                                                               |                                                         |                                                         | $                                                                                                       |             3.2                        |                                                                                                    | $ |         393.6  |   | $ |      1,104.7  |   | $ |      1,501.5  |
|         | (1)Level 3 net assets and liabilities accounted for 1.0% of total net assets and liabilities measured at fair value on a  |
|         | recurring basis. Excluding separate accounts assets for which the policyholder bears the risk, the Level 3 net assets                    |
|         | and liabilities in relation to total net assets and liabilities measured at fair value on a recurring basis totaled 3.2%.           |

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|         |                                                    |                                                   |                                                                                              |                                                  |                                                             |                                                                                              |                                                  | 2010                                                             |                                                                                              |                                                  | 2009                                                             |
|--------------|---------------------------------------------------------|--------------------------------------------------------|---------------------------------------------------------------------------------------------------|-------------------------------------------------------|------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|-------------------------------------------------------|------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|-------------------------------------------------------|------------------------------------------------------------------|
|         |                                                    |                                                   |                                                                                              |                                                  |                                                             |                                                                                              |                                                  | Carrying                                                         |                                                                                              |                                                  | Fair                                                             |   |   | Carrying |   |   | Fair |
|         |                                                    |                                                   |                                                                                              |                                                  |                                                             |                                                                                              |                                                  | Value                                                            |                                                                                              |                                                  | Value                                                            |   |   | Value |   |   | Value |
| Assets:      |                                                    |                                                   |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |   |   |   |
|         | Fixed maturities, available-for-sale,         |                                                   |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |   |
|         |                                                    | including securities pledged                 | $                                                                                                 |   20,854.4                             |                                                             | $                                                                                                 |   20,854.4                             |                                                             | $                                                                                                 |   18,249.0                             |                                                             | $ |   18,249.0  |
|         | Equity securities, available-for-sale         |                                                   |        128.9                                              |                                                  |                                                             |        128.9                                              |                                                  |                                                             |        154.3                                              |                                                  |                                                             |        154.3  |
|         | Mortgage loans on real estate       |                                                   |     3,125.1                                                              |                                                  |                                                             |     3,161.5                                                              |                                                  |                                                             |     3,413.2                                                              |                                                  |                                                             |     3,417.3  |
|         | Loan - Dutch State obligation       |                                                   |        898.5                                              |                                                  |                                                             |        871.4                                              |                                                  |                                                             |     1,026.0                                                              |                                                  |                                                             |        971.4  |
|         | Policy loans                                       |                                                   |        127.4                                              |                                                  |                                                             |        127.4                                              |                                                  |                                                             |        131.6                                              |                                                  |                                                             |        131.6  |
|         | Cash, cash equivalents, Short-term  |                                                   |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |   |
|         |                                                    | investments, and Short-term             |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |   |   |
|         |                                                    | investments under securities loan  |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |   |   |
|         |                                                    | agreement                                              |                                                                                              |     2,399.7                  |                                                             |                                                                                              |     2,399.7                  |                                                             |                                                                                              |     2,250.8                  |                                                             |   |     2,250.8  |
|         | Derivatives                                             |                                                   |                                                                                              |        383.1  |                                                             |                                                                                              |        383.1  |                                                             |                                                                                              |        317.4  |                                                             |   |        317.4  |
|         | Other investments                                  |                                                   |          23.5                                   |                                                  |                                                             |          23.5                                   |                                                  |                                                             |          23.9                                   |                                                  |                                                             |          37.4  |
|         | Deposits from affiliates                      |                                                   |     1,678.6                                                              |                                                  |                                                             |     1,775.8                                                              |                                                  |                                                             |     1,752.0                                                              |                                                  |                                                             |     1,873.6  |
|         | Embedded derivative on reinsurance       |                                                   |               -   |                                                  |                                                             |               -   |                                                  |                                                             |          38.7                                   |                                                  |                                                             |          38.7  |
|         | Assets held in separate accounts    |                                                   |   39,856.4                                                                         |                                                  |                                                             |   39,856.4                                                                         |                                                  |                                                             |   42,996.1                                                                         |                                                  |                                                             |   42,996.1  |
| Liabilities: |                                                    |                                                   |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |   |   |
|         | Investment contract liabilities:              |                                                   |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |   |
|         |                                                    | Deferred annuities                                |                                                                                              |   21,198.3                             |                                                             |                                                                                              |   21,220.0                             |                                                             |                                                                                              |   20,665.8                             |                                                             |   |   20,766.5  |
|         |                                                    | Guaranteed investment contracts              |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |   |   |
|         |                                                    |                                                   | and funding agreements                                                                  |                                                  |     2,518.1                             |                                                                                              |                                                  |     2,592.0                             |                                                                                              |                                                  |     2,646.5                             |   |   |     2,718.3  |
|         |                                                    | Supplementary contracts and             |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |   |   |
|         |                                                    |                                                   | immediate annuities                                                                          |                                                  |        802.2             |                                                                                              |                                                  |        761.8             |                                                                                              |                                                  |        823.6             |   |   |        782.7  |
|         | Derivatives                                             |                                                   |                                                                                              |        449.3  |                                                             |                                                                                              |        449.3  |                                                             |                                                                                              |        500.4  |                                                             |   |        500.4  |
|         | Investment contract guarantees:               |                                                   |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |   |
|         |                                                    | Fixed indexed annuities                      |                                                                                              |        977.3  |                                                             |                                                                                              |        977.3  |                                                             |                                                                                              |        927.2  |                                                             |   |        927.2  |
|         |                                                    | Guaranteed minimum withdrawal           |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |                                                                                              |                                                  |                                                             |   |   |
|         |                                                    |                                                   | and accumulation benefits                                                               |                                                  |          97.1  |                                                                                              |                                                  |          97.1  |                                                                                              |                                                  |          73.9  |   |   |          73.9  |
|         | Embedded derivative on reinsurance       |                                                   |        108.5                                              |                                                  |                                                             |        108.5                                              |                                                  |                                                             |               -   |                                                  |                                                             |               -   |
|         | Notes to affiliates                           |                                                   |        435.0                                              |                                                  |                                                             |        455.1                                              |                                                  |                                                             |        435.0                                              |                                                  |                                                             |        426.9  |

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|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                       |                                                                  |                                                       |                                                              |                                                                                              | Three Months Ended June 30, 2010                   |
|----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------------------------------------------------------------|------------------------------------------------------------|-------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                       |                                                                  |                                                       |                                                              |                                                                                              |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Change in  |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                       |                                                                  |                                                       |                                                              | Fair Value                                                                                   |                                                                        | Total realized/unrealized |   | Purchases, |   | Transfers |   | Transfers |   | Fair Value |   | unrealized gains |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                       |                                                                  |                                                       |                                                              | as of                                                                                   |                                                                        | gains (losses) included in: |   | issuances, and |   | in to |   | out of  |   | as of |   | (losses) included |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                       |                                                                  |                                                       |                                                              | April 1                                                                                      |                                                                        | Net income |   | OCI |   | settlements |   | Level 3(2) |   | Level 3(2) |   | June 30 |   | in earnings(3) |
| Fixed maturities, available for sale,            |                                                                                                                                                                                                                                                                                                                                 |                                                       |                                                                  |                                                       |                                                              |                                                                                              |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 | including securities pledged:                                                                                                                                                                                                                                                                                              |                                                       |                                                                  |                                                       |                                                              |                                                                                              |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 | U.S. corporate, state and municipalities                                                                                                                                                                                                                                                                         | $                                                          |         41.1             |                                                       | $                                                                 |           (0.6)                                 |                                                                        | $ |            0.7  |   | $ |                24.5  |   | $ |      34.2  |   | $ |      (32.9) |   | $ |         67.0  |   | $ |                   (0.1) |
|                                                                 | Foreign                                                                                                                                                                                                                                                                                                                              |                                                       |                                                                  |         71.3  |                                                              |                                                                                              |            0.3  |   |   |            1.7  |   |   |                11.1  |   |   |        2.2  |   |   |      (31.3) |   |   |         55.3  |   |   |                     0.2  |
|                                                                 | Residential mortgage-backed securities                                                                                                                                                                                                                                                                                     |                                                       |         44.5             |                                                       |                                                              |           (2.2)                                 |                                                                        |   |            6.7  |   |   |                (2.3) |   |   |    113.8  |   |   |      (12.2) |   |   |       148.3  |   |   |                   (2.2) |
|                                                                 | Commercial mortgage-backed securities                                                                                                                                                                                                                                                                                      |                                                       |           7.9  |                                                       |                                                              |               -   |                                                                        |   |               -   |   |   |                    -   |   |   |           -   |   |   |        (7.9) |   |   |              -   |   |   |                        -   |
|                                                                 | Other asset-backed securities                                                                                                                                                                                                                                                                                              |                                                       |       649.8                        |                                                       |                                                              |         (11.6)                                            |                                                                        |   |          31.0  |   |   |              (22.3) |   |   |      32.5  |   |   |             -   |   |   |       679.4  |   |   |                 (12.8) |
| Total Fixed maturities, available for sale, |                                                                                                                                                                                                                                                                                                                                 |                                                       |                                                                  |                                                       |                                                              |                                                                                              |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 | including securities pledged:                                                                                                                                                                                                                                                                                              |                                                       |       814.6                        |                                                       |                                                              |         (14.1)                                            |                                                                        |   |          40.1  |   |   |                11.0  |   |   |    182.7  |   |   |      (84.3) |   |   |       950.0  |   |   |                 (14.9) |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                       |                                                                  |                                                       |                                                              |                                                                                              |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity securities, available for sale            |                                                                                                                                                                                                                                                                                                                                 |         11.8  |                                                                  |                                                       |           (0.1) |                                                                                              |                                                                        |           (0.1) |   |   |                  1.4  |   |   |           -   |   |   |             -   |   |   |         13.0  |   |   |                        -   |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                       |                                                                  |                                                       |                                                              |                                                                                              |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives, net                                                |                                                                                                                                                                                                                                                                                                                                 |         75.6  |                                                                  |                                                       |         (58.3)            |                                                                                              |                                                                        |               -   |   |   |                49.4  |   |   |           -   |   |   |             -   |   |   |         66.7  |   |   |                     1.3  |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                       |                                                                  |                                                       |                                                              |                                                                                              |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment contract guarantees:                            |                                                                                                                                                                                                                                                                                                                                 |                                                       |                                                                  |                                                       |                                                              |                                                                                              |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 | FIA                                                                                                                                                                                                                                                                                                                                  |                                                       |                                                                  |                                                       |      (978.8)                             |                                                                                              |                                                                        |          23.5  |   |   |               -   |   |   |              (22.0) |   |   |           -   |   |   |             -   |   |   |     (977.3) |   |   |                        -   |
|                                                                 | GMWB/GMAB                                                                                                                                                                                                                                                                                                                            |                                                       |        (55.1)                      |                                                       |                                                              |         (40.4)                                            |                                                                        |   |               -   |   |   |                (1.6) |   |   |           -   |   |   |             -   |   |   |       (97.1) |   |   |                        -   |
| Total Investment contract guarantees                  |                                                                                                                                                                                                                                                                                                                                 |   (1,033.9)                                      |                                                                  |                                                       |         (16.9)            | (1)                                                                                               |                                                                        |               -   |   |   |              (23.6) |   |   |           -   |   |   |             -   |   |   |  (1,074.4) |   |   |                        -   |
| (1)                                                                  | This amount is included in Interest credited and other benefits to contractowners on the Condensed Statements of Operations. All gains and losses on Level 3 liabilities are classified  |
|                                                                 | as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis.                   |
| (2)                                                                  | The Company's policy is to recognize transfers in and transfers out as of the beginning of the reporting period.                                                                                                                           |                                                       |                                                                  |                                                       |                                                              |                                                                                              |                                                                        |   |   |   |   |   |   |
| (3)                                                                  | For financial instruments still held as of June 30. Amounts are included in Net investment income and Net realized capital losses on the Condensed Statements of Operations.                       |

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|                                                            |                                                                                                                                                                                                                                                                                                                                 |                                                             |                                                                                        |                                                                                        |                                                              |                                                                                              |  Six Months Ended June 30, 2010     |
|----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|-------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|-------------------------------------------------------------------|
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                                  |                                                                                        |                                                                                        |                                                              |                                                                                              |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Change in  |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                                  |                                                                                        |                                                                                        |                                                              | Fair Value                                                                                   |                                                              | Total realized/unrealized |   | Purchases, |   | Transfers |   | Transfers |   | Fair Value |   | unrealized gains |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                                  |                                                                                        |                                                                                        |                                                              | as of                                                                                   |                                                              | gains (losses) included in: |   | issuances, and |   | in to |   | out of  |   | as of |   | (losses) included |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                                  |                                                                                        |                                                                                        |                                                              | January 1                                                                                    |                                                              | Net income |   | OCI |   | settlements |   | Level 3(2) |   | Level 3(2) |   | June 30 |   | in earnings(3) |
| Fixed maturities, available for sale,            |                                                                                                                                                                                                                                                                                                                                 |                                                                  |                                                                                        |                                                                                        |                                                              |                                                                                              |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 | including securities pledged:                                                                                                                                                                                                                                                                                              |                                                                  |                                                                                        |                                                                                        |                                                              |                                                                                              |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 | U.S. corporate, state and municipalities                                                                                                                                                                                                                                                                         | $                                                                     |              -   |                                                                                        | $                                                                 |           (0.6)                                 |                                                              | $ |            0.7  |   | $ |               24.3  |   | $ |        42.6  |   | $ |            -   |   | $ |         67.0  |   | $ |                     0.1  |
|                                                                 | Foreign                                                                                                                                                                                                                                                                                                                              |                                                                  |                                                                                        |              -   |                                                              |                                                                                              |           (9.5) |   |   |            7.0  |   |   |                 9.1  |   |   |        48.7  |   |   |            -   |   |   |         55.3  |   |   |                   (9.6) |
|                                                                 | Residential mortgage-backed securities                                                                                                                                                                                                                                                                                     |                                                                  |    1,088.2                                                              |                                                                                        |                                                              |           (2.6)                                 |                                                              |   |            7.4  |   |   |               (6.0) |   |   |        13.1  |   |   |    (951.8) |   |   |       148.3  |   |   |                   (2.6) |
|                                                                 | Commercial mortgage-backed securities                                                                                                                                                                                                                                                                                      |                                                                  |              -   |                                                                                        |                                                              |               -   |                                                              |   |               -   |   |   |                    -   |   |   |             -   |   |   |            -   |   |   |             -   |   |   |                        -   |
|                                                                 | Other asset-backed securities                                                                                                                                                                                                                                                                                              |                                                                  |       423.9                                              |                                                                                        |                                                              |         (16.0)                                            |                                                              |   |          74.5  |   |   |             (39.4) |   |   |      236.4  |   |   |            -   |   |   |       679.4  |   |   |                 (17.2) |
| Total Fixed maturities, available for sale, |                                                                                                                                                                                                                                                                                                                                 |                                                                  |                                                                                        |                                                                                        |                                                              |                                                                                              |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 | including securities pledged:                                                                                                                                                                                                                                                                                              |                                                                  |    1,512.1                                                              |                                                                                        |                                                              |         (28.7)                                            |                                                              |   |          89.6  |   |   |             (12.0) |   |   |      340.8  |   |   |    (951.8) |   |   |       950.0  |   |   |                 (29.3) |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                                  |                                                                                        |                                                                                        |                                                              |                                                                                              |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity securities, available for sale            |                                                                                                                                                                                                                                                                                                                                 |           4.5  |                                                                                        |                                                                                        |           (0.1) |                                                                                              |                                                              |           (0.7) |   |   |                 9.3  |   |   |             -   |   |   |            -   |   |   |         13.0  |   |   |                        -   |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                                  |                                                                                        |                                                                                        |                                                              |                                                                                              |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives, net                                                |                                                                                                                                                                                                                                                                                                                                 |       111.9                        |                                                                                        |                                                                                        |         (58.7)            |                                                                                              |                                                              |               -   |   |   |               13.5  |   |   |             -   |   |   |            -   |   |   |         66.7  |   |   |                   12.7  |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                                  |                                                                                        |                                                                                        |                                                              |                                                                                              |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment contract guarantees:                            |                                                                                                                                                                                                                                                                                                                                 |                                                                  |                                                                                        |                                                                                        |                                                              |                                                                                              |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 | FIA                                                                                                                                                                                                                                                                                                                                  |                                                                  |                                                                                        |                                                                                        |      (927.2)                             |                                                                                              |                                                              |           (3.6) |   |   |               -   |   |   |             (46.5) |   |   |             -   |   |   |            -   |   |   |     (977.3) |   |   |                        -   |
|                                                                 | GMWB/GMAB                                                                                                                                                                                                                                                                                                                            |                                                                  |        (73.9)                                            |                                                                                        |                                                              |         (20.1)                                            |                                                              |   |               -   |   |   |               (3.1) |   |   |             -   |   |   |            -   |   |   |       (97.1) |   |   |                        -   |
| Total Investment contract guarantees                  |                                                                                                                                                                                                                                                                                                                                 |   (1,001.1)                                                 |                                                                                        |                                                                                        |         (23.7)            | (1)                                                                                               |                                                              |               -   |   |   |             (49.6) |   |   |             -   |   |   |            -   |   |   |  (1,074.4) |   |   |                        -   |
| (1)                                                                  | This amount is included in Interest credited and other benefits to contractowners on the Condensed Statements of Operations. All gains and losses on Level 3 liabilities are classified  |
|                                                                 | as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis.                   |
| (2)                                                                  | The Company's policy is to recognize transfers in and transfers out as of the beginning of the reporting period.                                                                                                                           |                                                                  |                                                                                        |                                                                                        |                                                              |                                                                                              |                                                              |   |   |   |   |   |   |
| (3)                                                                  | For financial instruments still held as of June 30. Amounts are included in Net investment income and Net realized capital losses on the Condensed Statements of Operations.                       |

----

----

|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                             |                                            |   |                                                                         |                                                                         | Three Months Ended June 30, 2009 |
|----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------|-------------------------------------------------|--------|------------------------------------------------------------------------------|------------------------------------------------------------------------------|-----------------------------------------------------------|
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                             |                                            |   |                                                                         |                                                                         |                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Change in  |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                             |                                            |   |                                                                         | Fair Value                                                              |                                                      | Total realized/unrealized |   | Purchases, |   | Transfers |   | Transfers |   | Fair Value |   | unrealized gains |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                             |                                            |   |                                                                         | as of                                                              |                                                      | gains (losses) included in: |   | issuances, and |   | in to |   | out of  |   | as of |   | (losses) included |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                             |                                            |   |                                                                         | April 1                                                                 |                                                      | Net income |   | OCI |   | settlements |   | Level 3(2) |   | Level 3(2) |   | June 30 |   | in earnings(3) |
| Fixed maturities, available for sale,            |                                                                                                                                                                                                                                                                                                                                 |                                             |                                            |   |                                                                         |                                                                         |                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 | including securities pledged:                                                                                                                                                                                                                                                                                              |                                             |                                            |   |                                                                         |                                                                         |                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 | Residential mortgage-backed securities                                                                                                                                                                                                                                                                                     | $                                                |    1,740.9                  |   | $                                                                            |            42.2  |                                                      | $ |        (113.2) |   | $ |              (62.3) |   | $ |            -   |   | $ |              -   |   | $ |     1,607.6  |   | $ |                 (39.1) |
|                                                                 | Other asset-backed securities                                                                                                                                                                                                                                                                                              |                                             |       433.2  |   |                                                                         |            73.1  |                                                      |   |          (74.9) |   |   |              (26.4) |   |   |            -   |   |   |              -   |   |   |        405.0  |   |   |                   55.5  |
| Total Fixed maturities, available for sale, |                                                                                                                                                                                                                                                                                                                                 |                                             |                                            |   |                                                                         |                                                                         |                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 | including securities pledged:                                                                                                                                                                                                                                                                                              |                                             |    2,174.1                  |   |                                                                         |          115.3             |                                                      |   |        (188.1) |   |   |              (88.7) |   |   |            -   |   |   |              -   |   |   |     2,012.6  |   |   |                   16.4  |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                             |                                            |   |                                                                         |                                                                         |                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives, net                                                |                                                                                                                                                                                                                                                                                                                                 |        (53.9) |                                            |   |            14.5  |                                                                         |                                                      |                -   |   |   |                52.5  |   |   |            -   |   |   |              -   |   |   |          13.1  |   |   |                 (35.4) |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                             |                                            |   |                                                                         |                                                                         |                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment contract guarantees:                            |                                                                                                                                                                                                                                                                                                                                 |                                             |                                            |   |                                                                         |                                                                         |                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 | FIA                                                                                                                                                                                                                                                                                                                                  |                                             |                                            |   |      (558.4)                                        |                                                                         |                                                      |          (62.6) |   |   |                -   |   |   |              (41.2) |   |   |            -   |   |   |              -   |   |   |      (662.2) |   |   |                        -   |
|                                                                 | GMWB/GMAB                                                                                                                                                                                                                                                                                                                            |                                             |      (158.2)           |   |                                                                         |            46.6  |                                                      |   |                -   |   |   |                (1.5) |   |   |            -   |   |   |              -   |   |   |      (113.1) |   |   |                        -   |
| Total Investment contract guarantees                  |                                                                                                                                                                                                                                                                                                                                 |      (716.6)            |                                            |   |          (16.0)                 | (1)                                                                          |                                                      |                -   |   |   |              (42.7) |   |   |            -   |   |   |              -   |   |   |      (775.3) |   |   |                        -   |
| (1)                                                                  | This amount is included in Interest credited and other benefits to contractowners on the Condensed Statements of Operations. All gains and losses on Level 3 liabilities are classified  |
|                                                                 | as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis.                   |
| (2)                                                                  | The Company's policy is to recognize transfers in and transfers out as of the beginning of the reporting period.                                                                                                                           |                                             |                                            |   |                                                                         |                                                                         |                                                      |   |   |   |   |   |   |
| (3)                                                                  | For financial instruments still held as of June 30. Amounts are included in Net investment income and Net realized capital losses on the Condensed Statements of Operations.                       |

----

----

|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                       |                                            |   |                                                                         |                                                                         | Six Months Ended June 30, 2009 |
|----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-------------------------------------------------|--------|------------------------------------------------------------------------------|------------------------------------------------------------------------------|---------------------------------------------------------|
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                       |                                            |   |                                                                         |                                                                         |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Change in  |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                       |                                            |   |                                                                         | Fair Value                                                              |                                                    | Total realized/unrealized |   | Purchases, |   | Transfers |   | Transfers |   | Fair Value |   | unrealized gains |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                       |                                            |   |                                                                         | as of                                                              |                                                    | gains (losses) included in: |   | issuances, and |   | in to |   | out of  |   | as of |   | (losses) included |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                       |                                            |   |                                                                         | January 1                                                               |                                                    | Net income |   | OCI |   | settlements |   | Level 3(2) |   | Level 3(2) |   | June 30 |   | in earnings(3) |
| Fixed maturities, available for sale,            |                                                                                                                                                                                                                                                                                                                                 |                                                       |                                            |   |                                                                         |                                                                         |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 | including securities pledged:                                                                                                                                                                                                                                                                                              |                                                       |                                            |   |                                                                         |                                                                         |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 | Residential mortgage-backed securities                                                                                                                                                                                                                                                                                     | $                                                          |    2,082.2                  |   | $                                                                            |            95.2  |                                                    | $ |          460.8  |   | $ |         (1,394.3) |   | $ |     363.7  |   | $ |             -   |   | $ |     1,607.6  |   | $ |                 (40.0) |
|                                                                 | Other asset-backed securities                                                                                                                                                                                                                                                                                              |                                                       |       507.4  |   |                                                                         |            19.9  |                                                    |   |          (74.9) |   |   |              (47.4) |   |   |           -   |   |   |             -   |   |   |        405.0  |   |   |                   17.5  |
| Total Fixed maturities, available for sale, |                                                                                                                                                                                                                                                                                                                                 |                                                       |                                            |   |                                                                         |                                                                         |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 | including securities pledged:                                                                                                                                                                                                                                                                                              |                                                       |    2,589.6                  |   |                                                                         |          115.1             |                                                    |   |          385.9  |   |   |         (1,441.7) |   |   |     363.7  |   |   |             -   |   |   |     2,012.6  |   |   |                 (22.5) |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                       |                                            |   |                                                                         |                                                                         |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives, net                                                |                                                                                                                                                                                                                                                                                                                                 |         10.0  |                                            |   |           (20.3)           |                                                                         |                                                    |                 -   |   |   |                23.4  |   |   |           -   |   |   |             -   |   |   |          13.1  |   |   |                 (66.0) |
|                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                       |                                            |   |                                                                         |                                                                         |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment contract guarantees:                            |                                                                                                                                                                                                                                                                                                                                 |                                                       |                                            |   |                                                                         |                                                                         |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 | FIA                                                                                                                                                                                                                                                                                                                                  |                                                       |                                            |   |      (638.9)                                        |                                                                         |                                                    |            11.7  |   |   |                 -   |   |   |              (35.0) |   |   |           -   |   |   |             -   |   |   |      (662.2) |   |   |                        -   |
|                                                                 | GMWB/GMAB                                                                                                                                                                                                                                                                                                                            |                                                       |      (153.0)           |   |                                                                         |            43.1  |                                                    |   |                 -   |   |   |                (3.2) |   |   |           -   |   |   |             -   |   |   |      (113.1) |   |   |                        -   |
| Total Investment contract guarantees                  |                                                                                                                                                                                                                                                                                                                                 |      (791.9)                      |                                            | $      |            54.8  | (1)                                                                          |                                                    |                 -   |   |   |              (38.2) |   |   |           -   |   |   |             -   |   |   |      (775.3) |   |   |                        -   |
| (1)                                                                  | This amount is included in Interest credited and other benefits to contractowners on the Condensed Statements of Operations. All gains and losses on Level 3 liabilities are classified  |
|                                                                 | as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis.                   |
| (2)                                                                  | The Company's policy is to recognize transfers in and transfers out as of the beginning of the reporting period.                                                                                                                           |                                                       |                                            |   |                                                                         |                                                                         |                                                    |   |   |   |   |   |   |
| (3)                                                                  | For financial instruments still held as of June 30. Amounts are included in Net investment income and Net realized capital losses on the Condensed Statements of Operations.                       |

----

----

----

----

----

----

|                                                                                                                                                                                                                 |   | 2010     |    |   | 2009            |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|--------|-----------------|--------|
|                                                                                                                                                                                                                 |   | Notional |    |   | Asset           |   |   | Liability |   |   | Notional |   |   | Asset |   |   | Liability |   |
|                                                                                                                                                                                                                 |   | Amount   |    |   | Fair Value |   |   | Fair Value |   |   | Amount |   |   | Fair Value |   |   | Fair Value |   |
| Interest rate caps(1)                                                                                                                                                                                      |   |     | -       |   |            | $      | - |   |   | $ | - |   |   |   | 122.0 |   |   | $ | 0.4 |   |   | $ | 0.1 |   |
| Interest rate swaps(1)                                                                                                                                                                                     |   |     | 8,585.3 |   |            |   | 192.9 |   |   |   | 341.7 |   |   |   | 6,765.3 |   |   |   | 44.2 |   |   |   | 325.1 |   |
| Foreign exchange swaps(1)                                                                                                                                                                                  |   |     | 267.8   |   |            |   | 9.5 |   |   |   | 20.9 |   |   |   | 287.3 |   |   |   | - |   |   |   | 52.9 |   |
| Credit default swaps(1)                                                                                                                                                                                    |   |     | 228.9   |   |            |   | 0.5 |   |   |   | 55.1 |   |   |   | 358.9 |   |   |   | 0.3 |   |   |   | 106.0 |   |
| Total return swaps(1)                                                                                                                                                                                      |   |     | 215.8   |   |            |   | 8.0 |   |   |   | 1.9 |   |   |   | 124.3 |   |   |   | - |   |   |   | 2.9 |   |
| Forwards(1)                                                                                                                                                                                                          |   |     | 1,167.9 |   |            |   | 9.3 |   |   |   | 10.2 |   |   |   | 528.5 |   |   |   | 14.2 |   |   |   | - | * |
| Futures(1)                                                                                                                                                                                                           |   |     | 6,728.0 |   |            |   | 41.3 |   |   |   | 5.2 |   |   |   | 5,121.8 |   |   |   | 42.8 |   |   |   | 3.2 |   |
| Options(1)                                                                                                                                                                                                           |   |     | 3,817.4 |   |            |   | 121.6 |   |   |   | 14.3 |   |   |   | 5,097.8 |   |   |   | 215.5 |   |   |   | 10.2 |   |
| Embedded derivatives:                                                                                                                                                                                           |   |     |    |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Within securities(2)                                                                                                                                                                                            |   |     | N/A     |   |            |   | 64.7 |   |   |   | 8.1 |   |   |   | N/A |   |   |   | 47.8 |   |   |   | 9.4 |   |
| Within retail annuity                                                                                                                                                                                 |   |     |    |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| products(3)                                                                                                                                                                                                          |   |     | N/A     |   |            |   | - |   |   |   | 1,074.4 |   |   |   | N/A |   |   |   | - |   |   |   | 1,001.1 |   |
| Within reinsurance                                                                                                                                                                                         |   |     |    |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| agreement(3)                                                                                                                                                                                                         |   |     | N/A     |   |            |   | - |   |   |   | 108.5 |   |   |   | N/A |   |   |   | 38.7 |   |   |   | - |   |
| Total                                                                                                                                                                                                                |   |     |    |   |            | $      | 447.8 |   |   | $ | 1,640.3 |   |   |   |   |   |   | $ | 403.9 |   |   | $ | 1,510.9 |   |
| N/A - Not applicable.                                                                                                                                                                                 |   |     |    |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *       Less than $0.1.                                                                                                                                                                               |   |     |    |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) The fair values of these derivatives are reported in Derivatives or Other liabilities on the Condensed Balance Sheets. |   |
| (2) The fair values of embedded derivatives within securities are reported in Fixed maturities, available-for-sale, on the           |   |
| Condensed Balance Sheets with the underlying instrument.                                                                                                                               |   |     |    |   |            |   |   |   |   |   |   |   |   |
| (3) The fair values of embedded derivatives within retail annuity products and reinsurance agreements are reported in Future    |   |
| policy benefits and claim reserves on the Condensed Balance Sheets.                                                                                                     |   |     |    |   |            |   |   |   |   |   |   |   |   |

----

----

|                                                                                                                                                                                         |   | For the Three Months |   |   | For the Six Months |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|--------|--------|-----------------------------------|--------|
|                                                                                                                                                                                         |   | Ended June 30,            |   |   | Ended June 30,          |   |
|                                                                                                                                                                                         |   | 2010                                |   |   | 2009                              |   |   | 2010 |   |   | 2009 |   |
| Interest rate caps(1)                                                                                                                                                              |   | $                                   | (0.1   | )      |                              | $      | 0.3 |   |   | $ | (0.3 | ) |   | $ | 0.3 |   |
| Interest rate swaps(1)                                                                                                                                                             |   |                                | 56.6   |   |                              |   | 10.4 |   |   |   | 37.9 |   |   |   | (28.1 | ) |
| Foreign exchange swaps(1)                                                                                                                                                          |   |                                | 34.3   |   |                              |   | (28.8 | ) |   |   | 44.7 |   |   |   | (20.0 | ) |
| Credit default swaps(1)                                                                                                                                                            |   |                                | (3.4   | )      |                              |   | (19.3 | ) |   |   | (3.3 | ) |   |   | (5.7 | ) |
| Total return swaps(1)                                                                                                                                                              |   |                                | 16.2   |   |                              |   | (19.9 | ) |   |   | 7.3 |   |   |   | (22.4 | ) |
| Forwards(1)                                                                                                                                                                                  |   |                                | 43.6   |   |                              |   | 1.2 |   |   |   | 75.0 |   |   |   | 2.8 |   |
| Swaptions(1)                                                                                                                                                                                 |   |                                | -      |   |                              |   | - |   |   |   | - |   |   |   | (2.1 | ) |
| Futures(1)                                                                                                                                                                                   |   |                                | 510.2  |   |                              |   | (843.7 | ) |   |   | 208.9 |   |   |   | (705.7 | ) |
| Options(1)                                                                                                                                                                                   |   |                                | (31.2  | )      |                              |   | 21.3 |   |   |   | (31.4 | ) |   |   | (12.7 | ) |
| Embedded derivatives:                                                                                                                                                                   |   |                                |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Within securities(1)                                                                                                                                                                    |   |                                | 14.3   |   |                              |   | (1.2 | ) |   |   | 18.2 |   |   |   | (35.8 | ) |
| Within retail annuity products(2)                                                                                                                                             |   |                                | (16.9  | )      |                              |   | (16.0 | ) |   |   | (23.7 | ) |   |   | 54.8 |   |
| Within reinsurance agreements(2)                                                                                                                                                   |   |                                | (132.5 | )      |                              |   | - |   |   |   | (108.5 | ) |   |   | - |   |
| Total                                                                                                                                                                                        |   | $                                   | 491.1  |   |                              | $      | (895.7 | ) |   | $ | 224.8 |   |   | $ | (774.6 | ) |
| (1)      Changes in value are included in Net realized capital losses on the Condensed Statements of Operations.  |   |                                |   |   |                              |
| (2)      Changes in value are included in Interest credited and other benefits to contractowners on the Condensed |   |                                |   |   |                              |
| Statements of Operations.                                                                                                                                                          |   |                                |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |

----

----

| 5.   | Investments |
|----------------|-------------|

|                                                                                                                                                                                              |      |   |     |    | Gross      |   |    | Gross      |   |    |   |   |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|--------|----------|---------|------------|--------|---------|------------|--------|---------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                              |      |   |     |    | Unrealized |   |    | Unrealized |   |    |   |   |   |   |   |
|                                                                                                                                                                                              | Amortized |   |     | Capital |       |   | Capital |       |   |    |   |   | Fair   |   |
|                                                                                                                                                                                              | Cost      |   |     | Gains   |       |   | Losses  |       |   | OTTI(2) |   |   | Value  |   |
| Fixed maturities:                                                                                                                                                                            |      |   |     |    |       |   |    |       |   |    |   |   |   |   |   |
| U.S. Treasuries                                                                                                                                                                              |      | $      | 3,030.5  |    |       | $      | 145.2   |       |   | $       | -      |   |   | $      | -      |   |   | $ | 3,175.7 |   |
| U.S. government agencies and authorities                                                                                                                                      |      |   | 41.9     |    |       |   | 1.7     |       |   |    | 0.1    |   |   |   | -      |   |   |   | 43.5 |   |
| State, municipalities, and political                                                                                                                                          |      |   |     |    |       |   |    |       |   |    |   |   |   |   |   |   |   |   |   |   |
| subdivisions                                                                                                                                                                                      |      |   | 86.4     |    |       |   | 4.6     |       |   |    | 6.3    |   |   |   | -      |   |   |   | 84.7 |   |
|                                                                                                                                                                                              |      |   |     |    |       |   |    |       |   |    |   |   |   |   |   |   |   |   |   |   |
| U.S. corporate securities:                                                                                                                                                              |      |   |     |    |       |   |    |       |   |    |   |   |   |   |   |   |   |   |   |   |
| Public utilities                                                                                                                                                                             |      |   | 1,138.1  |    |       |   | 90.3    |       |   |    | 3.7    |   |   |   | -      |   |   |   | 1,224.7 |   |
| Other corporate securities                                                                                                                                                              |      |   | 5,448.2  |    |       |   | 357.3   |       |   |    | 40.8   |   |   |   | 0.3    |   |   |   | 5,764.4 |   |
| Total U.S. corporate securities                                                                                                                                                    |      |   | 6,586.3  |    |       |   | 447.6   |       |   |    | 44.5   |   |   |   | 0.3    |   |   |   | 6,989.1 |   |
|                                                                                                                                                                                              |      |   |     |    |       |   |    |       |   |    |   |   |   |   |   |   |   |   |   |   |
| Foreign securities(1):                                                                                                                                                                       |      |   |     |    |       |   |    |       |   |    |   |   |   |   |   |   |   |   |   |   |
| Government                                                                                                                                                                                        |      |   | 428.6    |    |       |   | 34.2    |       |   |    | 3.6    |   |   |   | -      |   |   |   | 459.2 |   |
| Other                                                                                                                                                                                             |      |   | 3,487.2  |    |       |   | 185.3   |       |   |    | 41.2   |   |   |   | 0.1    |   |   |   | 3,631.2 |   |
| Total foreign securities                                                                                                                                                                |      |   | 3,915.8  |    |       |   | 219.5   |       |   |    | 44.8   |   |   |   | 0.1    |   |   |   | 4,090.4 |   |
|                                                                                                                                                                                              |      |   |     |    |       |   |    |       |   |    |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage-backed securities                                                                                                                                                  |      |   | 1,982.1  |    |       |   | 241.1   |       |   |    | 75.2   |   |   |   | 74.9   |   |   |   | 2,073.1 |   |
| Commercial mortgage-backed securities                                                                                                                                                   |      |   | 2,628.7  |    |       |   | 78.4    |       |   |    | 241.8  |   |   |   | 6.6    |   |   |   | 2,458.7 |   |
| Other asset-backed securities                                                                                                                                                           |      |   | 2,193.0  |    |       |   | 15.4    |       |   |    | 217.4  |   |   |   | 51.8   |   |   |   | 1,939.2 |   |
|                                                                                                                                                                                              |      |   |     |    |       |   |    |       |   |    |   |   |   |   |   |   |   |   |   |   |
| Total fixed maturities, including securities                                                                                                                             |      |   |     |    |       |   |    |       |   |    |   |   |   |   |   |   |   |   |   |   |
| pledged                                                                                                                                                                                           |      |   | 20,464.7 |    |       |   | 1,153.5 |       |   |    | 630.1  |   |   |   | 133.7  |   |   |   | 20,854.4 |   |
| Less: securities pledged                                                                                                                                                                |      |   | 641.8    |    |       |   | 36.9    |       |   |    | 1.1    |   |   |   | -      |   |   |   | 677.6 |   |
| Total fixed maturities                                                                                                                                                                  |      |   | 19,822.9 |    |       |   | 1,116.6 |       |   |    | 629.0  |   |   |   | 133.7  |   |   |   | 20,176.8 |   |
| Equity securities                                                                                                                                                                            |      |   | 125.2    |    |       |   | 4.4     |       |   |    | 0.7    |   |   |   | -      |   |   |   | 128.9 |   |
| Total investments, available-for-sale                                                                                                                                                   |      | $      | 19,948.1 |    |       | $      | 1,121.0 |       |   | $       | 629.7  |   |   | $      | 133.7  |   |   | $ | 20,305.7 |   |
| (1)Primarily U.S. dollar denominated.                                                                                                                                              |      |   |     |    |       |   |    |       |   |    |   |   |   |   |   |   |   |   |   |   |
| (2)Represents other-than-temporary impairments reported as a component of Other comprehensive income ("noncredit impairments").  |      |

----

----

|                                                                                                                                                                                        |   |      |     |   | Gross      |   |   | Gross      |   |   |    |   |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|----------|--------|------------|--------|--------|------------|--------|--------|---------|--------|--------|--------|--------|
|                                                                                                                                                                                        |   |      |     |   | Unrealized |   |   | Unrealized |   |   |    |   |   |   |   |
|                                                                                                                                                                                        |   | Amortized |     |   | Capital    |   |   | Capital    |   |   |    |   |   | Fair   |   |
|                                                                                                                                                                                        |   | Cost      |     |   | Gains      |   |   | Losses     |   |   | OTTI(2) |   |   | Value  |   |
| Fixed maturities:                                                                                                                                                                      |   |      |     |   |       |   |   |       |   |   |    |   |   |   |   |
| U.S. Treasuries                                                                                                                                                                        |   | $         | 4,201.0  |   |       | $      | 2.5    |       |   | $      | 80.0    |   |   | $      | -      |   |   | $ | 4,123.5 |   |
| U.S. government agencies and authorities                                                                                                                                |   |      | 26.1     |   |       |   | 0.1    |       |   |   | 1.6     |   |   |   | -      |   |   |   | 24.6 |   |
| State, municipalities, and political                                                                                                                                    |   |      |     |   |       |   |   |       |   |   |    |   |   |   |   |   |   |   |   |   |
| subdivisions                                                                                                                                                                                |   |      | 47.8     |   |       |   | 2.2    |       |   |   | 5.2     |   |   |   | -      |   |   |   | 44.8 |   |
|                                                                                                                                                                                        |   |      |     |   |       |   |   |       |   |   |    |   |   |   |   |   |   |   |   |   |
| U.S. corporate securities:                                                                                                                                                        |   |      |     |   |       |   |   |       |   |   |    |   |   |   |   |   |   |   |   |   |
| Public utilities                                                                                                                                                                       |   |      | 997.4    |   |       |   | 57.5   |       |   |   | 6.9     |   |   |   | -      |   |   |   | 1,048.0 |   |
| Other corporate securities                                                                                                                                                        |   |      | 4,290.8  |   |       |   | 247.8  |       |   |   | 71.8    |   |   |   | 0.4    |   |   |   | 4,466.4 |   |
| Total U.S. corporate securities                                                                                                                                              |   |      | 5,288.2  |   |       |   | 305.3  |       |   |   | 78.7    |   |   |   | 0.4    |   |   |   | 5,514.4 |   |
|                                                                                                                                                                                        |   |      |     |   |       |   |   |       |   |   |    |   |   |   |   |   |   |   |   |   |
| Foreign securities(1):                                                                                                                                                                 |   |      |     |   |       |   |   |       |   |   |    |   |   |   |   |   |   |   |   |   |
| Government                                                                                                                                                                                  |   |      | 369.8    |   |       |   | 23.8   |       |   |   | 8.3     |   |   |   | -      |   |   |   | 385.3 |   |
| Other                                                                                                                                                                                       |   |      | 2,880.8  |   |       |   | 131.7  |       |   |   | 78.5    |   |   |   | 0.4    |   |   |   | 2,933.6 |   |
| Total foreign securities                                                                                                                                                          |   |      | 3,250.6  |   |       |   | 155.5  |       |   |   | 86.8    |   |   |   | 0.4    |   |   |   | 3,318.9 |   |
|                                                                                                                                                                                        |   |      |     |   |       |   |   |       |   |   |    |   |   |   |   |   |   |   |   |   |
| Residential mortgage-backed securities                                                                                                                                            |   |      | 1,758.9  |   |       |   | 210.7  |       |   |   | 150.7   |   |   |   | 70.9   |   |   |   | 1,748.0 |   |
| Commercial mortgage-backed securities                                                                                                                                             |   |      | 3,012.5  |   |       |   | 25.3   |       |   |   | 448.2   |   |   |   | -      |   |   |   | 2,589.6 |   |
| Other asset-backed securities                                                                                                                                                     |   |      | 1,218.6  |   |       |   | 11.8   |       |   |   | 316.8   |   |   |   | 28.4   |   |   |   | 885.2 |   |
|                                                                                                                                                                                        |   |      |     |   |       |   |   |       |   |   |    |   |   |   |   |   |   |   |   |   |
| Total fixed maturities, including securities                                                                                                                       |   |      |     |   |       |   |   |       |   |   |    |   |   |   |   |   |   |   |   |   |
| pledged                                                                                                                                                                                     |   |      | 18,803.7 |   |       |   | 713.4  |       |   |   | 1,168.0 |   |   |   | 100.1  |   |   |   | 18,249.0 |   |
| Less: securities pledged                                                                                                                                                          |   |      | 1,079.4  |   |       |   | 35.3   |       |   |   | 22.2    |   |   |   | -      |   |   |   | 1,092.5 |   |
| Total fixed maturities                                                                                                                                                            |   |      | 17,724.3 |   |       |   | 678.1  |       |   |   | 1,145.8 |   |   |   | 100.1  |   |   |   | 17,156.5 |   |
| Equity securities                                                                                                                                                                      |   |      | 150.8    |   |       |   | 4.3    |       |   |   | 0.8     |   |   |   | -      |   |   |   | 154.3 |   |
| Total investments, available-for-sale                                                                                                                                             |   | $         | 17,875.1 |   |       | $      | 682.4  |       |   | $      | 1,146.6 |   |   | $      | 100.1  |   |   | $ | 17,310.8 |   |
| (1)Primarily U.S. dollar denominated.                                                                                                                                        |   |      |     |   |       |   |   |       |   |   |    |   |   |   |   |   |   |   |   |   |
| (2)Represents other-than-temporary impairments reported as a component of Other comprehensive income ("noncredit impairments"). |   |

----

----

|                                                               |   | Amortized |     |   | Fair   |   |
|--------------------------------------------------------------------|--------|-----------|----------|--------|--------|--------|
|                                                               |   | Cost      |     |   | Value  |   |
| Due to mature:                                           |   |      |     |   |   |   |
| One year or less                                    |   | $         | 399.7    |   |   | $      | 405.8 |   |
| After one year through five years         |   |      | 5,420.1  |   |   |   | 5,653.2 |   |
| After five years through ten years        |   |      | 4,161.3  |   |   |   | 4,427.1 |   |
| After ten years                                          |   |      | 3,679.8  |   |   |   | 3,897.3 |   |
| Mortgage-backed securities                                    |   |      | 4,610.8  |   |   |   | 4,531.8 |   |
| Other asset-backed securities                            |   |      | 2,193.0  |   |   |   | 1,939.2 |   |
| Less: securities pledged                                 |   |      | 641.8    |   |   |   | 677.6 |   |
| Fixed maturities, excluding securities pledged |   | $         | 19,822.9 |   |   | $      | 20,176.8 |   |

----

----

----

----

----

----

|                                           |   | 2010                                                            |              |   | 2009   |
|------------------------------------------------|--------|-----------------------------------------------------------------|-------------------|--------|--------|
|                                           |   |                                                            | % of IG |   |   |   |   | % of IG |   |   |   |   | % of IG |   |   |   |   | % of IG |
|                                           |   | IG                                                              | and BIG      |   |   | BIG |   | and BIG |   |   | IG |   | and BIG |   |   | BIG |   | and BIG |
| Six months or less              |   |                                                            |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| below amortized cost                 | $      |        44.8             | 5.9%              |   | $      |      3.5  |   | 0.5% |   | $ |       170.1  |   | 13.5% |   | $ |        21.2  |   | 1.7% |
| More than six months and   |   |                                                            |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| twelve months or less           |   |                                                            |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| below amortized cost                 |   |          3.4  | 0.4%              |   |   |      3.2  |   | 0.4% |   |   |       259.3  |   | 20.4% |   |   |      200.8  |   | 15.8% |
| More than twelve months         |   |                                                            |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| below amortized cost                 |   |      342.6                        | 44.8%             |   |   |  366.3  |   | 48.0% |   |   |       419.0  |   | 33.0% |   |   |      197.7  |   | 15.6% |
| Total unrealized capital losses | $      |      390.8                        | 51.1%             |   | $      |  373.0  |   | 48.9% |   | $ |       848.4  |   | 66.9% |   | $ |      419.7  |   | 33.1% |

|                                                           |   | Six Months |    |   | More than           |   |    |                |   |   |       |   |
|----------------------------------------------------------------|--------|-----------------|---------|--------|--------------------------|--------|---------|---------------------|--------|--------|------------|--------|
|                                                           |   | or Less    |    |   | Six Months and |   |    | More than      |   |   | Total      |   |
|                                                           |   | Below           |    |   | Twelve Months       |   |    | Twelve Months  |   |   | Unrealized |   |
|                                                           |   | Amortized       |    |   | or Less Below  |   |    | Below               |   |   | Capital    |   |
| 2010                                                           |   | Cost            |    |   | Amortized Cost      |   |    | Amortized Cost |   |   | Losses     |   |
| Interest rate or spread widening           |   | $               | 25.4    |   |                     | $      | 3.4     |                |   | $      | 67.3       |   |   | $ | 96.1 |   |
| Mortgage and other asset-backed securities |   |            | 22.9    |   |                     |   | 3.2     |                |   |   | 641.6      |   |   |   | 667.7 |   |
| Total unrealized capital losses                 |   | $               | 48.3    |   |                     | $      | 6.6     |                |   | $      | 708.9      |   |   | $ | 763.8 |   |
| Fair value                                                |   | $               | 1,849.6 |   |                     | $      | 58.4    |                |   | $      | 2,466.6    |   |   | $ | 4,374.6 |   |
|                                                           |   |            |    |   |                     |   |    |                |   |   |       |   |   |   |   |   |
| 2009                                                           |   |            |    |   |                     |   |    |                |   |   |       |   |   |   |   |   |
| Interest rate or spread widening           |   | $               | 99.3    |   |                     | $      | 31.6    |                |   | $      | 122.2      |   |   | $ | 253.1 |   |
| Mortgage and other asset-backed securities |   |            | 92.0    |   |                     |   | 428.5   |                |   |   | 494.5      |   |   |   | 1,015.0 |   |
| Total unrealized capital losses                 |   | $               | 191.3   |   |                     | $      | 460.1   |                |   | $      | 616.7      |   |   | $ | 1,268.1 |   |
| Fair value                                                |   | $               | 5,275.9 |   |                     | $      | 1,058.2 |                |   | $      | 2,714.5    |   |   | $ | 9,048.6 |   |

----

----

|                                   |                              |   |    |                           |       |   |                | More Than Six     |   |              |                       |   |            |   |   |              |       |   |            |   |   |
|----------------------------------------|-----------------------------------|--------|---------|--------------------------------|------------|--------|---------------------|-----------------------------|--------|-------------------|----------------------------|--------|-----------------|--------|--------|-------------------|------------|--------|-----------------|--------|--------|
|                                   |                              |   |    |                           |       |   |                | Months and Twelve |   |              | More Than Twelve |   |            |   |   |              |       |   |
|                                   | Six Months or Less |   |    | Months or Less       |       |   | Months Below   |                        |   |              |                       |   |            |   |
|                                   | Below Amortized Cost    |   |    | Below Amortized Cost |       |   | Amortized Cost |                        |   | Total             |                       |
|                                   |                              |   |    |                           | Unrealized |   |                |                        |   |              | Unrealized                 |   |            |   |   |              | Unrealized |   |            |   |   |   | Unrealized |   |
|                                   | Fair Value                   |   |    | Capital Loss              |       |   | Fair Value     |                        |   | Capital Loss |                       |   | Fair Value |   |   | Capital Loss |       |   | Fair Value |   |   | Capital Loss |   |
| 2010                                   |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |
| U.S. government              |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |
| agencies and                      |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |
| authorities                            |                              | $      | -       |                           |       | $      | -                   |                        |   | $                 | -                          |   |            | $      | -      |              |       | $      | 8.9             |   |   | $ | 0.1 |   |   | $ | 8.9 |   |   | $ | 0.1 |   |
| U.S. corporate, state,  |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and municipalities                |                              |   | 422.4   |                           |       |   | 11.0                |                        |   |              | 33.2                       |   |            |   | 2.6    |              |       |   | 357.9           |   |   |   | 37.5 |   |   |   | 813.5 |   |   |   | 51.1 |   |
| Foreign                                |                              |   | 366.1   |                           |       |   | 14.4                |                        |   |              | 13.9                       |   |            |   | 0.8    |              |       |   | 255.6           |   |   |   | 29.7 |   |   |   | 635.6 |   |   |   | 44.9 |   |
| Residential                       |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| mortgage-backed                        |                              |   | 151.5   |                           |       |   | 2.4                 |                        |   |              | 6.4                        |   |            |   | 2.2    |              |       |   | 419.0           |   |   |   | 145.5 |   |   |   | 576.9 |   |   |   | 150.1 |   |
| Commercial                        |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| mortgage-backed                        |                              |   | 245.2   |                           |       |   | 19.9                |                        |   |              | 3.8                        |   |            |   | 0.3    |              |       |   | 820.2           |   |   |   | 228.2 |   |   |   | 1,069.2 |   |   |   | 248.4 |   |
| Other asset-backed                |                              |   | 664.4   |                           |       |   | 0.6                 |                        |   |              | 1.1                        |   |            |   | 0.7    |              |       |   | 605.0           |   |   |   | 267.9 |   |   |   | 1,270.5 |   |   |   | 269.2 |   |
| Total                                  |                              | $      | 1,849.6 |                           |       | $      | 48.3                |                        |   | $                 | 58.4                       |   |            | $      | 6.6    |              |       | $      | 2,466.6         |   |   | $ | 708.9 |   |   | $ | 4,374.6 |   |   | $ | 763.8 |   |
|                                   |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                                   |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasuries                   |                              | $      | 3,761.2 |                           |       | $      | 80.0                |                        |   | $                 | -                          |   |            | $      | -      |              |       | $      | -               |   |   | $ | - |   |   | $ | 3,761.2 |   |   | $ | 80.0 |   |
| U.S. government              |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| agencies                          |                              |   | 15.2    |                           |       |   | 0.8                 |                        |   |              | 8.2                        |   |            |   | 0.8    |              |       |   | -               |   |   |   | - |   |   |   | 23.4 |   |   |   | 1.6 |   |
| and authorities                   |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. corporate, state,  |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and municipalities                |                              |   | 273.8   |                           |       |   | 6.7                 |                        |   |              | 108.1                      |   |            |   | 13.5   |              |       |   | 737.7           |   |   |   | 64.1 |   |   |   | 1,119.6 |   |   |   | 84.3 |   |
| Foreign                                |                              |   | 228.1   |                           |       |   | 11.8                |                        |   |              | 107.8                      |   |            |   | 17.3   |              |       |   | 472.6           |   |   |   | 58.1 |   |   |   | 808.5 |   |   |   | 87.2 |   |
| Residential                       |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| mortgage-backed                        |                              |   | 139.1   |                           |       |   | 46.5                |                        |   |              | 183.5                      |   |            |   | 92.3   |              |       |   | 260.7           |   |   |   | 82.8 |   |   |   | 583.3 |   |   |   | 221.6 |   |
| Commercial                        |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| mortgage-backed                        |                              |   | 795.5   |                           |       |   | 44.1                |                        |   |              | 534.6                      |   |            |   | 243.1  |              |       |   | 682.7           |   |   |   | 161.0 |   |   |   | 2,012.8 |   |   |   | 448.2 |   |
| Other asset-backed                |                              |   | 63.0    |                           |       |   | 1.4                 |                        |   |              | 116.0                      |   |            |   | 93.1   |              |       |   | 560.8           |   |   |   | 250.7 |   |   |   | 739.8 |   |   |   | 345.2 |   |
| Total                                  |                              | $      | 5,275.9 |                           |       | $      | 191.3               |                        |   | $                 | 1,058.2                    |   |            | $      | 460.1  |              |       | $      | 2,714.5         |   |   | $ | 616.7 |   |   | $ | 9,048.6 |   |   | $ | 1,268.1 |   |

----

----

|                                               |   | Amortized Cost |    |   | Unrealized Capital Loss |   |    | Number of Securities |   |
|----------------------------------------------------|--------|---------------------|---------|--------|-----------------------------------|--------|---------|--------------------------------|--------|
|                                               |   | < 20%       |    |   | > 20%                     |   |    | < 20%                  |   |   | > 20% |   |   | < 20% |   |   | > 20% |   |
| 2010                                               |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |
| Six months or less                  |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |
| below amortized cost                     |   | $                   | 2,472.8 |   |                              | $      | 300.9   |                           |   | $ | 128.9 |   |   | $ | 68.8 |   |   |   | 242 |   |   |   | 33 |   |
| More than six months and  |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| twelve months or less               |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| below amortized cost                     |   |                | 803.3   |   |                              |   | 13.3    |                           |   |   | 65.9 |   |   |   | 4.6 |   |   |   | 91 |   |   |   | 10 |   |
| More than twelve months        |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| below amortized cost                     |   |                | 419.0   |   |                              |   | 1,129.1 |                           |   |   | 20.2 |   |   |   | 475.4 |   |   |   | 79 |   |   |   | 211 |   |
| Total                                              |   | $                   | 3,695.1 |   |                              | $      | 1,443.3 |                           |   | $ | 215.0 |   |   | $ | 548.8 |   |   |   | 412 |   |   |   | 254 |   |
|                                               |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                                               |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Six months or less                  |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| below amortized cost                     |   | $                   | 6,184.5 |   |                              | $      | 396.8   |                           |   | $ | 265.1 |   |   | $ | 111.8 |   |   |   | 282 |   |   |   | 96 |   |
| More than six months and  |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| twelve months or less               |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| below amortized cost                     |   |                | 1,248.5 |   |                              |   | 982.3   |                           |   |   | 68.8 |   |   |   | 433.2 |   |   |   | 191 |   |   |   | 115 |   |
| More than twelve months        |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| below amortized cost                     |   |                | 619.0   |   |                              |   | 885.6   |                           |   |   | 27.8 |   |   |   | 361.4 |   |   |   | 113 |   |   |   | 158 |   |
| Total                                              |   | $                   | 8,052.0 |   |                              | $      | 2,264.7 |                           |   | $ | 361.7 |   |   | $ | 906.4 |   |   |   | 586 |   |   |   | 369 |   |

----

----

|                                     |   | Amortized Cost |    |   | Unrealized Capital Loss |   |    | Number of Securities |   |
|------------------------------------------|--------|---------------------|---------|--------|-----------------------------------|--------|---------|--------------------------------|--------|
|                                     |   | < 20%       |    |   | > 20%                     |   |    | < 20%                  |   |   | > 20% |   |   | < 20% |   |   | > 20% |   |
| 2010                                     |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |
| U.S. government agencies       |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |
| and authorities                     |   | $                   | 9.0     |   |                              | $      | -       |                           |   | $ | 0.1 |   |   | $ | - |   |   |   | 2 |   |   |   | - |   |
| U.S. corporate, state and |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| municipalities                           |   |                | 824.0   |   |                              |   | 40.6    |                           |   |   | 41.4 |   |   |   | 9.7 |   |   |   | 129 |   |   |   | 9 |   |
| Foreign                                  |   |                | 628.0   |   |                              |   | 52.5    |                           |   |   | 32.0 |   |   |   | 12.9 |   |   |   | 78 |   |   |   | 8 |   |
| Residential mortgage-backed         |   |                | 391.4   |   |                              |   | 335.6   |                           |   |   | 27.2 |   |   |   | 122.9 |   |   |   | 65 |   |   |   | 98 |   |
| Commercial mortgage-backed          |   |                | 848.5   |   |                              |   | 469.1   |                           |   |   | 84.6 |   |   |   | 163.8 |   |   |   | 52 |   |   |   | 32 |   |
| Other asset-backed                  |   |                | 994.2   |   |                              |   | 545.5   |                           |   |   | 29.7 |   |   |   | 239.5 |   |   |   | 86 |   |   |   | 107 |   |
| Total                                    |   | $                   | 3,695.1 |   |                              | $      | 1,443.3 |                           |   | $ | 215.0 |   |   | $ | 548.8 |   |   |   | 412 |   |   |   | 254 |   |
|                                     |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                                     |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasuries                     |   | $                   | 3,841.2 |   |                              | $      | -       |                           |   | $ | 80.0 |   |   | $ | - |   |   |   | 21 |   |   |   | - |   |
| U.S. government agencies       |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and authorities                     |   |                | 25.0    |   |                              |   | -       |                           |   |   | 1.6 |   |   |   | - |   |   |   | 4 |   |   |   | - |   |
| U.S. corporate, state and |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| municipalities                           |   |                | 1,139.0 |   |                              |   | 64.9    |                           |   |   | 67.8 |   |   |   | 16.5 |   |   |   | 220 |   |   |   | 32 |   |
| Foreign                                  |   |                | 712.7   |   |                              |   | 183.0   |                           |   |   | 33.1 |   |   |   | 54.1 |   |   |   | 93 |   |   |   | 30 |   |
| Residential mortgage-backed         |   |                | 336.0   |   |                              |   | 468.9   |                           |   |   | 35.9 |   |   |   | 185.7 |   |   |   | 83 |   |   |   | 119 |   |
| Commercial mortgage-backed          |   |                | 1,534.5 |   |                              |   | 926.5   |                           |   |   | 104.2 |   |   |   | 344.0 |   |   |   | 96 |   |   |   | 60 |   |
| Other asset-backed                  |   |                | 463.6   |   |                              |   | 621.4   |                           |   |   | 39.1 |   |   |   | 306.1 |   |   |   | 69 |   |   |   | 128 |   |
| Total                                    |   | $                   | 8,052.0 |   |                              | $      | 2,264.7 |                           |   | $ | 361.7 |   |   | $ | 906.4 |   |   |   | 586 |   |   |   | 369 |   |

----

----

----

----

| §   | Recovery      value is estimated by performing a discounted cash flow analysis based      upon the best estimate of expected future cash flows, discounted at the      effective interest rate implicit in the underlying debt      security.  The effective interest rate is the current yield      prior to impairment for a fixed rate security or current coupon yield for      a floating rate security. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Collectability      and recoverability are estimated using the same considerations as the      Company uses in its overall impairment analysis which includes, but is not      limited to, the length of time and the extent to which the fair value has      been less than amortized cost, the issuer’s financial condition and      near-term prospects, future economic conditions and market forecasts,      interest rate changes, and changes in ratings of the    security. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Additional      factors considered for structured securities such as RMBS, CMBS and other      ABS include, but are not limited to, quality of underlying collateral,      anticipated loss severities, collateral default rates, and other      collateral characteristics such as vintage, collateral re-payment terms,      and the geographical makeup of thecollateral. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                 |   | Three Months Ended June 30, |   |
|------------------------------------------------------|--------|-------------------------------------------------|--------|
|                                                 |   | 2010                                            |   |   | 2009 |   |
|                                                 |   |                                            |   |   | No. of |   |   |   |   |   | No. of |   |
|                                                 |   | Impairment                                      |   |   | Securities |   |   | Impairment |   |   | Securities |   |
| U.S. Treasuries                                 |   | $                                               | -      |   |   |   | - |   |   | $ | 80.5 |   |   |   | 10 |   |
| U.S. corporate                                  |   |                                            | 2.4    |   |   |   | 12 |   |   |   | 9.1 |   |   |   | 11 |   |
| Foreign(1)                                           |   |                                            | 10.9   |   |   |   | 13 |   |   |   | 6.2 |   |   |   | 7 |   |
| Residential mortgage-backed                     |   |                                            | 6.0    |   |   |   | 51 |   |   |   | 9.0 |   |   |   | 29 |   |
| Commercial mortgage-backed                      |   |                                            | 6.2    |   |   |   | 2 |   |   |   | - |   |   |   | - |   |
| Other asset-backed                              |   |                                            | 11.7   |   |   |   | 19 |   |   |   | 13.9 |   |   |   | 12 |   |
| Equity securities                               |   |                                            | -      | * |   |   | 1 |   |   |   | 1.2 |   |   |   | 1 |   |
| Public utilities                                |   |                                            | 0.1    |   |   |   | 2 |   |   |   | - |   |   |   | - |   |
| Mortgage loans on real estate    |   |                                            | 0.3    |   |   |   | 1 |   |   |   | 0.5 |   |   |   | 1 |   |
| Limited partnerships                            |   |                                            | -      |   |   |   | - |   |   |   | 0.4 |   |   |   | 1 |   |
| Total                                                |   | $                                               | 37.6   |   |   |   | 101 |   |   | $ | 120.8 |   |   |   | 72 |   |
| (1)Primarily U.S. dollar denominated. |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *Less than $0.1.                           |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

|                                                 |   | Six Months Ended June 30, |   |
|------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                 |   | 2010                                          |   |   | 2009 |   |
|                                                 |   |                                          |   |   | No. of |   |   |   |   |   | No. of |   |
|                                                 |   | Impairment                                    |   |   | Securities |   |   | Impairment |   |   | Securities |   |
| U.S. Treasuries                                 |   | $                                             | -      |   |   |   | - |   |   | $ | 114.7 |   |   |   | 13 |   |
| U.S. corporate                                  |   |                                          | 3.7    |   |   |   | 17 |   |   |   | 50.4 |   |   |   | 49 |   |
| Foreign(1)                                           |   |                                          | 22.8   |   |   |   | 19 |   |   |   | 24.2 |   |   |   | 31 |   |
| Residential mortgage-backed                     |   |                                          | 12.5   |   |   |   | 54 |   |   |   | 100.9 |   |   |   | 85 |   |
| Commercial mortgage-backed                      |   |                                          | 8.3    |   |   |   | 2 |   |   |   | - |   |   |   | - |   |
| Other asset-backed                              |   |                                          | 15.1   |   |   |   | 24 |   |   |   | 126.7 |   |   |   | 39 |   |
| Equity securities                               |   |                                          | -      | * |   |   | 1 |   |   |   | 3.3 |   |   |   | 5 |   |
| Public utilities                                |   |                                          | 0.3    |   |   |   | 5 |   |   |   | - |   |   |   | - |   |
| Mortgage loans on real estate    |   |                                          | 0.5    |   |   |   | 1 |   |   |   | 0.5 |   |   |   | 1 |   |
| Limited partnerships                            |   |                                          | -      |   |   |   | - |   |   |   | 0.4 |   |   |   | 1 |   |
| Total                                                |   | $                                             | 63.2   |   |   |   | 123 |   |   | $ | 421.1 |   |   |   | 224 |   |
| (1)Primarily U.S. dollar denominated. |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *Less than $0.1.                           |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                 |   | Three Months Ended June 30, |   |
|------------------------------------------------------|--------|-------------------------------------------------|--------|
|                                                 |   | 2010                                            |   |   | 2009 |   |
|                                                 |   |                                            |   |   | No. of |   |   |   |   |   | No. of |   |
|                                                 |   | Impairment                                      |   |   | Securities |   |   | Impairment |   |   | Securities |   |
| U.S. Treasuries                                 |   | $                                               | -      |   |   |   | - |   |   | $ | 80.5 |   |   |   | 10 |   |
| U.S. corporate                                  |   |                                            | 2.4    |   |   |   | 12 |   |   |   | 7.0 |   |   |   | 10 |   |
| Foreign(1)                                           |   |                                            | 10.8   |   |   |   | 13 |   |   |   | 3.6 |   |   |   | 6 |   |
| Other asset-backed                              |   |                                            | 0.3    |   |   |   | 1 |   |   |   | - |   |   |   | - |   |
| Public utilities                                |   |                                            | 0.1    |   |   |   | 2 |   |   |   | - |   |   |   | - |   |
| Total                                                |   | $                                               | 13.6   |   |   |   | 28 |   |   | $ | 91.1 |   |   |   | 26 |   |
| (1)Primarily U.S. dollar denominated. |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

|                                                 |   |   | Six Months Ended June 30, |   |
|------------------------------------------------------|--------|--------|-----------------------------------------------|--------|
|                                                 |   |   | 2010                                          |   |   | 2009 |   |
|                                                 |   |   |                                          |   |   | No. of |   |   |   |   |   | No. of |   |
|                                                 |   |   | Impairment                                    |   |   | Securities |   |   | Impairment |   |   | Securities |   |
| U.S. Treasuries                                 |   | $      | -                                             |   |   |   | - |   |   | $ | 114.7 |   |   |   | 13 |   |
| U.S. corporate                                  |   |   | 3.7                                           |   |   |   | 17 |   |   |   | 42.7 |   |   |   | 34 |   |
| Foreign(1)                                           |   |   |                                          | 12.5   |   |   |   | 16 |   |   |   | 21.6 |   |   |   | 30 |   |
| Residential mortgage-backed                     |   |   | -                                             |   |   |   | - |   |   |   | 23.1 |   |   |   | 8 |   |
| Other asset-backed                              |   |   | 0.3                                           |   |   |   | 1 |   |   |   | 109.1 |   |   |   | 11 |   |
| Public utilities                                |   |   | 0.3                                           |   |   |   | 5 |   |   |   | - |   |   |   | - |   |
| Total                                                |   |   | $                                             | 16.8   |   |   |   | 39 |   |   | $ | 311.2 |   |   |   | 96 |   |
| (1)Primarily U.S. dollar denominated. |        |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                 |   |   | Three Months Ended June 30, |   |
|------------------------------------------------------|--------|--------|-------------------------------------------------|--------|
|                                                 |   |   | 2010                                            |   |   | 2009 |   |
|                                                 |   |   |                                            |   |   | No of |   |   |   |   |   | No of |   |
|                                                 |   |   | Impairment                                      |   |   | Securities |   |   | Impairment |   |   | Securities |   |
| U.S. corporate                                  |   | $      | -                                               |   |   |   | - |   |   | $ | 2.1 |   |   |   | 3 |   |
| Foreign(1)                                           |   |   |                                            | -      |   |   |   | - |   |   |   | 0.4 |   |   |   | 6 |   |
| Commercial mortgage-backed                      |   |   | 1.9                                             |   |   |   | 1 |   |   |   | - |   |   |   | - |   |
| Residential mortgage-backed                     |   |   | 5.4                                             |   |   |   | 16 |   |   |   | 75.0 |   |   |   | 33 |   |
| Other asset-backed                              |   |   | 3.2                                             |   |   |   | 3 |   |   |   | 7.4 |   |   |   | 14 |   |
| Total                                                |   |   | $                                               | 10.5   |   |   |   | 20 |   |   | $ | 84.9 |   |   |   | 56 |   |
| (1)Primarily U.S. dollar denominated. |        |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

|                                                 |   |   | Six Months Ended June 30, |   |
|------------------------------------------------------|--------|--------|-----------------------------------------------|--------|
|                                                 |   |   | 2010                                          |   |   | 2009 |   |
|                                                 |   |   |                                          |   |   | No of |   |   |   |   |   | No of |   |
|                                                 |   |   | Impairment                                    |   |   | Securities |   |   | Impairment |   |   | Securities |   |
| U.S. corporate                                  |   | $      | -                                             |   |   |   | - |   |   | $ | 2.1 |   |   |   | 3 |   |
| Foreign(1)                                           |   |   |                                          | -      |   |   |   | - |   |   |   | 0.4 |   |   |   | 6 |   |
| Commercial mortgage-backed                      |   |   | 10.5                                          |   |   |   | 2 |   |   |   | - |   |   |   | - |   |
| Residential mortgage-backed                     |   |   | 16.9                                          |   |   |   | 25 |   |   |   | 75.0 |   |   |   | 33 |   |
| Other asset-backed                              |   |   | 29.1                                          |   |   |   | 9 |   |   |   | 7.4 |   |   |   | 14 |   |
| Total                                                |   |   | $                                             | 56.5   |   |   |   | 36 |   |   | $ | 84.9 |   |   |   | 56 |   |
| (1)Primarily U.S. dollar denominated. |        |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                                                                                                                         |   | Three Months Ended June 30, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|
|                                                                                                                                                                                         |   | 2010                                            |   |   | 2009 |   |
| Balance at April 1                                                                                                                                                            |   | $                                               | 117.5  |   |   | $ | 92.7 |  (1) |
| Additional credit impairments:                                                                                                                                                     |   |                                            |   |   |   |   |   |   |
| On securities not previously impaired                                                                                                                                    |   |                                            | 3.8    |   |   |   | 2.9 |   |
| On securities previously impaired                                                                                                                                             |   |                                            | 9.6    |   |   |   | 7.0 |   |
| Reductions:                                                                                                                                                                                  |   |                                            |   |   |   |   |   |   |
| Securities sold, matured, prepaid or paid down                                                                                                                 |   |                                            | (6.9   | ) |   |   | (0.4 | ) |
| Balance at June 30                                                                                                                                                            |   | $                                               | 124.0  |   |   | $ | 102.2 |   |
|                                                                                                                                                                                         |   |                                            |   |   |   |   |   |   |
|                                                                                                                                                                                         |   | Six Months Ended June 30,   |   |
|                                                                                                                                                                                         |   |                                            | 2010   |   |   |   | 2009 |   |
| Balance at January 1                                                                                                                                                          |   | $                                               | 123.3  |   |   | $ | - |   |
| Implementation of OTTI guidance included in                                                                                                                    |   |                                            |   |   |   |   |   |   |
| ASC Topic 320(1)                                                                                                                                                                   |   |                                            | -      |   |   |   | 92.7 |   |
| Additional credit impairments:                                                                                                                                                     |   |                                            |   |   |   |   |   |   |
| On securities not previously impaired                                                                                                                                    |   |                                            | 8.2    |   |   |   | 2.9 |   |
| On securities previously impaired                                                                                                                                             |   |                                            | 4.9    |   |   |   | 7.0 |   |
| Reductions:                                                                                                                                                                                  |   |                                            |   |   |   |   |   |   |
| Securities sold, matured, prepaid or paid down                                                                                                                 |   |                                            | (12.4  | ) |   |   | (0.4 | ) |
| Balance at June 30                                                                                                                                                            |   | $                                               | 124.0  |   |   | $ | 102.2 |   |
| (1) Represents credit losses remaining in Retained earnings related to the adoption of new guidance on OTTI, |   |
| included in ASC Topic 320, on April 1, 2009.                                                                                                         |   |                                            |   |   |   |   |   |   |

----

----

|                                                                                                     |   | Three Months Ended June 30, |   |
|----------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|
|                                                                                                     |   | 2010                                            |   |   | 2009 |   |
| Fixed maturities, available-for-sale, including net OTTI                        |   |                                            |   |   |   |   |
| of $(37.3) and $(118.7) in 2010 and 2009, respectively           |   | $                                               | (7.3   | ) |   | $ | (25.6 | ) |
| Equity securities, available-for-sale, including net OTTI                  |   |                                            |   |   |   |   |   |   |
| of $0* and $(1.2) in 2010 and 2009, respectively                 |   |                                            | 2.2    |   |   |   | 2.2 |   |
| Derivatives                                                                                              |   |                                            | 626.2  |   |   |   | (878.5 | ) |
| Other investments, including net OTTI of $(0.3) and $(0.9)  |   |                                            |   |   |   |   |   |   |
| in 2010 and 2009, respectively                                                       |   |                                            | 1.0    |   |   |   | (0.8 | ) |
| Net realized capital losses                                                               |   | $                                               | 622.1  |   |   | $ | (902.7 | ) |
| After-tax net realized capital losses, including tax valuation   |   |                                            |   |   |   |   |   |   |
| allowance of $9.5 in 2009                                                            |   | $                                               | 404.4  |   |   | $ | (596.3 | ) |
| *Less than $0.1.                                                                               |   |                                            |   |   |   |   |   |   |
|                                                                                                     |   |                                            |   |   |   |   |   |   |
|                                                                                                     |   | Six Months Ended June 30,   |   |
|                                                                                                     |   |                                            | 2010   |   |   |   | 2009 |   |
| Fixed maturities, available-for-sale, including net OTTI                        |   |                                            |   |   |   |   |   |   |
| of $(62.7) and $(416.9) in 2010 and 2009, respectively           |   | $                                               | 15.8   |   |   | $ | (258.0 | ) |
| Equity securities, available-for-sale, including net OTTI                  |   |                                            |   |   |   |   |   |   |
| of $0* and $(3.3) in 2010 and 2009, respectively                 |   |                                            | 2.3    |   |   |   | 0.2 |   |
| Derivatives                                                                                              |   |                                            | 338.8  |   |   |   | (793.6 | ) |
| Other investments, including net OTTI of $(0.5) and $(0.9)  |   |                                            |   |   |   |   |   |   |
| in 2010 and 2009, respectively                                                       |   |                                            | 2.7    |   |   |   | (3.1 | ) |
| Net realized capital losses                                                               |   | $                                               | 359.6  |   |   | $ | (1,054.5 | ) |
| After-tax net realized capital losses, including tax valuation   |   |                                            |   |   |   |   |   |   |
| allowance of $40.4 in 2009                                                           |   | $                                               | 233.7  |   |   | $ | (725.8 | ) |
| *Less than $0.1.                                                                               |   |                                            |   |   |   |   |   |   |

----

----

|                                                                                                                                                                                    |   | 2010   |    |   | 2009   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Proceeds on sales                                                                                                                                                             |   | $      | 2,536.7 |   |   | $      | 4,195.6 | * |
| Gross gains                                                                                                                                                                        |   |   | 81.9    |   |   |   | 247.9 |   |
| Gross losses                                                                                                                                                                       |   |   | 9.2     |   |   |   | 87.0 |   |
| * Includes proceeds from sale of Alt-A securities to the Dutch State in the first quarter of 2009. |   |

| 6.   | Deferred      Policy Acquisition Costs and Value of Business  Acquired |
|----------------|------------------------------------------------------------------------|

|                                                                                                |   | 2010   |    |   | 2009   |   |
|-----------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Balance at January 1                                                                 |   | $      | 3,718.0 |   |   | $      | 4,205.5 |   |
| Deferrals of commissions and expenses                                           |   |   | 114.8   |   |   |   | 226.3 |   |
| Amortization:                                                                                       |   |   |    |   |   |   |   |   |
| Amortization                                                                                        |   |   | (319.6  | )      |   |   | 85.3 |   |
| Interest accrued at 5% to 6%                                               |   |   | 116.7   |   |   |   | 85.3 |   |
| Net amortization included in the Condensed                            |   |   |    |   |   |   |   |   |
| Statements of Operations                                                                  |   |   | (202.9  | )      |   |   | 170.6 |   |
| Change in unrealized capital gains/losses on available-for-sale  |   |   |    |   |   |   |   |   |
| securities                                                                                          |   |   | (421.4  | )      |   |   | (642.2 | ) |
| Balance at June 30                                                                   |   | $      | 3,208.5 |   |   | $      | 3,960.2 |   |

----

----

|                                                                                                |   | 2010   |   |   | 2009   |   |
|-----------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Balance at January 1                                                                 |   | $      | 113.4  |   |   | $      | 195.1 |   |
| Amortization:                                                                                       |   |   |   |   |   |   |   |   |
| Amortization                                                                                        |   |   | (21.3  | )      |   |   | (4.4 | ) |
| Interest accrued at 5% to 6%                                               |   |   | 2.6    |   |   |   | 3.4 |   |
| Net amortization included in the Condensed                            |   |   |   |   |   |   |   |   |
| Statements of Operations                                                                  |   |   | (18.7  | )      |   |   | (1.0 | ) |
| Change in unrealized capital gains/losses on available-for-sale  |   |   |   |   |   |   |   |   |
| securities                                                                                          |   |   | (18.7  | )      |   |   | (54.0 | ) |
| Balance at June 30                                                                   |   | $      | 76.0   |   |   | $      | 140.1 |   |

|                                                                                                    |   | 2010   |   |   | 2009   |   |
|---------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Impact of separate account growth and contractowner withdrawal  |   |   |   |   |   |   |
| behavior different from assumptions                                                      |   | $      | 326.6  |   |   | $      | (120.9 | ) |
| Impact of current year gross profit variances                             |   |   | (111.0 | )      |   |   | 345.1 |   |
| Impact of refinements of gross profit projections                         |   |   | (10.6  | )      |   |   | 16.9 |   |
| Total unlocking effect on Amortization of DAC and VOBA          |   | $      | 205.0  |   |   | $      | 241.1 |   |

| 7.   | Capital      Contributions and Dividends |
|----------------|------------------------------------------|

----

----

| 8.   | Income      Taxes |
|----------------|-------------------|

|                                          |   | Three Months Ended June 30, |   |
|-----------------------------------------------|--------|-------------------------------------------------|--------|
|                                          |   | 2010                                            |   |   | 2009 |   |
| Statutory rate                           |   |                                            | 35.0   | % |   |   | 35.0 | % |
|                                          |   |                                            |   |   |   |   |   |   |
| Dividends received deduction        |   |                                            | 9.4    | % |   |   | 625.5 | % |
| Valuation allowance                      |   |                                            | 6.8    | % |   |   | (735.7 | )% |
| Other                                         |   |                                            | 0.3    | % |   |   | 0.2 | % |
| Effective rate at June 30 |   |                                            | 51.5   | % |   |   | (75.0 | )% |
|                                          |   |                                            |   |   |   |   |   |   |
|                                          |   | Six Months Ended June 30,   |   |
|                                          |   |                                            | 2010   |   |   |   | 2009 |   |
| Statutory rate                           |   |                                            | 35.0   | % |   |   | 35.0 | % |
|                                          |   |                                            |   |   |   |   |   |   |
| Dividends received deduction        |   |                                            | 19.9   | % |   |   | 4.9 | % |
| Valuation allowance                      |   |                                            | -      |   |   |   | (12.3 | )% |
| Other                                         |   |                                            | 0.5    | % |   |   | 0.1 | % |
| Effective rate at June 30 |   |                                            | 55.4   | % |   |   | 27.7 | % |

----

----

| 9.   | Financing      Agreements |
|----------------|---------------------------|

| 10.   | Commitments      and Contingent Liabilities |
|-----------------|---------------------------------------------|

----

----

----

----

| 11.   | Restructuring      Charges |
|-----------------|----------------------------|

----

----

| 12.   | Accumulated      Other Comprehensive Income (Loss) |
|-----------------|----------------------------------------------------|

|                                                                                                                  |   | 2010   |   |   | 2009   |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Net unrealized capital gains (losses):                                                            |   |   |   |   |   |   |
| Fixed maturities, available-for-sale, including OTTI of $(133.7) and          |   |   |   |   |   |   |
| $(84.9) in 2010 and 2009, respectively, and $(402.5) of cumulative  |   |   |   |   |   |   |
| change in accounting principle in 2009                                                       |   | $      | 389.7  |   |   | $      | (1,882.5 | ) |
| Equity securities, available-for-sale                                                                       |   |   | 3.7    |   |   |   | 5.4 |   |
| DAC/VOBA adjustment on available-for-sale securities, including                         |   |   |   |   |   |   |   |   |
| $139.1 of cumulative effect of change in accounting principle            |   |   |   |   |   |   |   |   |
| in 2009                                                                                                          |   |   | (504.4 | )      |   |   | 582.6 |   |
| Sales inducements adjustment on available-for-sale securities                                |   |   | (84.0  | )      |   |   | 73.5 |   |
| Other investments                                                                                                |   |   | (5.2   | )      |   |   | (5.8 | ) |
| Unrealized capital losses, before tax                                                             |   |   | (200.2 | )      |   |   | (1,226.8 | ) |
| Deferred income tax asset (includes $(48.6) cumulative effect of change  |   |   |   |   |   |   |   |   |
| of accounting principle in 2009)                                                                  |   |   | 95.5   |   |   |   | 248.2 |   |
| Net unrealized capital losses                                                                          |   |   | (104.7 | )      |   |   | (978.6 | ) |
| Pension liability, net of tax                                                                     |   |   | (3.3   | )      |   |   | (2.6 | ) |
| Accumulated other comprehensive loss                                                                   |   | $      | (108.0 | )      |   | $      | (981.2 | ) |

----

----

|                                                                                                                                                                                                            |   | 2010   |   |   | 2009   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Net unrealized capital holding gains (losses) arising                                                                                                                        |   |   |   |   |   |   |
| during the period(1)                                                                                                                                                                                  |   | $      | 278.6  |   |   | $      | 601.1 |   |
| Less: reclassification adjustment for gains (losses) and                                                                                                                     |   |   |   |   |   |   |   |   |
| other items included in Net income (loss)(2)                                                                                                                                      |   |   | 5.1    |   |   |   | 97.2 |   |
| Net change in unrealized capital gains (losses) on securities                                                                                                      |   | $      | 273.5  |   |   | $      | 503.9 |   |
| (1) Pretax net unrealized capital holding gains (losses) arising during the period were $428.5 and $924.7 for the six |   |
| months ended June 30, 2010 and 2009, respectively.                                                                                                                           |   |
| (2) Pretax reclassification adjustments for gains (losses) and other items included in Net income (loss) were $7.8 and     |   |
| $149.5 for the six months ended June 30, 2010 and 2009, respectively.                                                                                    |   |

|                                                                                                                                                                                                                |   | 2010   |   |   | 2009   |   |   |      |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|
| Balance at January 1                                                                                                                                                                                 |   | $      | 100.1  |   |   | $      | -      |  (2) |   |   |   |
| Additional noncredit impairments:                                                                                                                                                                         |   |   |   |   |   |   |   |      |   |   |   |
| On securities not previously impaired                                                                                                                                                           |   |   | 55.7   |   |   |   | 133.7  |      |   |   |   |
| On securities previously impaired                                                                                                                                                                    |   |   | 0.8    |   |   |   | 0.5    |      |   |   |   |
| Reductions:                                                                                                                                                                                                         |   |   |   |   |   |   |   |      |   |   |   |
| Securities sold, matured, prepaid or paid down(1)                                                                                                                                     |   |   | (6.0   | )      |   |   | (17.9  | )         |   |   |   |
| Securities with additional credit impairments(1)                                                                                                                                                |   |   | (16.9  | )      |   |   | (16.2  | )         |   |   |   |
| Total noncredit impairments                                                                                                                                                                               |   | $      | 133.7  |   |   | $      | 100.1  |      |   |   |   |
| (1)Represents realization of noncredit impairments to Net income (loss).                                                                                                    |   |   |   |   |   |   |   |      |   |   |   |
| (2)New guidance on recognition and presentation of OTTI, as included in ASC Topic 320, was adopted on April 1, 2009. |   |   |   |   |

----

| 13.   | Subsequent      Event |
|-----------------|-----------------------|

----

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

Overview

----

| (1)   | While      the United States is slowly emerging from the recent financial crisis      after substantial governmental intervention, significant risks still      remain for the United States and other world economies. Recent concerns      regarding certain sovereign credit risks and the threat of contagion could      increase U.S. market uncertainty and volatility. These global market      conditions have affected and may continue to affect the Company’s results      of operations; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Adverse      financial market conditions, changes in rating agency standards and      practices and/or actions taken by ratings agencies may significantly      affect the Company’s ability to meet liquidity needs, access to capital      and cost of capital; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Circumstances      associated with implementation of ING Groep’s recently announced global      business strategy and the final restructuring plan submitted to the      European Commission in connection with its review of ING Groep’s receipt      of state aid from the Dutch State could adversely affect the Company’s      results of operations and financialcondition; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | The      amount of statutory capital that the Company holds can vary significantly      from time to time and is sensitive to a number of factors outside of the      Company’s control and influences its financial strength and credit      ratings; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | The      Company experienced ratings downgrades in 2009 and may experience      additional future downgrades in the Company’s ratings, which may      negatively affect profitability, financial condition, and access to      liquidity; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Federal      actions taken since 2008 to alleviate the financial crisis may not achieve      their intended results. The new  federal financial regulatory      reform law, its implementing regulations and other financial regulatory      reform initiatives, could have unintended consequences for the financial      services industry, including the Company and/or materially affect the      Company’s results of operations, financial condition and      liquidity; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | The      valuation of many of the Company’s financial instruments include      methodologies, estimations and assumptions that are subject to differing      interpretations and could result in changes to investment valuations that      may materially adversely affect results of operations and financial      condition; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   | The      determination of the amount of impairments taken on the Company’s      investments is subjective and could materially impact results of      operations; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9)   | If      assumptions used in estimating future gross profits differ from actual      experience or if an estimation technique used to estimate future gross      profits is modified, the Company may be required to accelerate the      amortization of Deferred Acquisition Costs (“DAC”), which could have a      material adverse effect on results of operations and financial      condition; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10)   | The      Company may be required to establish an additional valuation allowance      against the deferred income tax asset if the Company’s business does not      generate sufficient taxable income or if the Company’s tax planning      strategies are modified based on new or revised US GAAP      requirements.  Increases in the deferred tax valuation allowance      could have a material adverse effect on results of operations and      financial condition; |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11)   | Reinsurance      subjects the Company to the credit risk of reinsurers and may not be      adequate to protect against losses arising from ceded      reinsurance; |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (12)   | Offshore      reinsurance subjects the Company to the risk that the reinsurer is unable      to provide acceptable credit forreinsurance; |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| (13)   | The      Company’s risk management program attempts to balance a number of      important factors including regulatory capital, risk based capital,      liquidity, earnings, and other factors.  Certain actions taken      as part of our risk management strategy could result in materially lower      or more volatile U.S. GAAP earnings in periods of changes in equity      markets; |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (14)   | The      inability of counterparties to meet their financial obligations could have      an adverse effect on the Company's results of  operations; |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (15)   | Changes      in underwriting and actual experience could materially affect      profitability; |
|------------------|------------------------------------------------------------------------------------------------|

| (16)   | Changes      in reserve estimates may reduceprofitability; |
|------------------|------------------------------------------------------------|

| (17)   | A      loss of key product distribution relationships could materially affect      sales; |
|------------------|-------------------------------------------------------------------------------------------|

| (18)   | Competition      could negatively affect the ability to maintain or increase      profitability; |
|------------------|--------------------------------------------------------------------------------------------------|

| (19)   | Changes      in federal income tax law or interpretations of existing tax law could      affect profitability and financial condition by making some products less      attractive to contractowners and increasing tax costs of contractowners or      the Company; |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (20)   | The      Company may be adversely affected by increased governmental and regulatory      scrutiny or negative publicity; |
|------------------|--------------------------------------------------------------------------------------------------------------------------|

| (21)   | A      loss of key employees could increase the Company’s operational risks and      could adversely affect the effectiveness of internal controls over      financial reporting; |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (22)   | Litigation      may adversely affect profitability and financial  condition; |
|------------------|------------------------------------------------------------------------------|

| (23)   | Changes      in regulation in the United States and recent regulatory investigations      may reduce profitability; |
|------------------|---------------------------------------------------------------------------------------------------------------------|

| (24)   | The      Company’s products are subject to extensive regulation and failure to meet      any of the complex product requirements may reduce      profitability; |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (25)   | Failure      of a Company operating or information system or a compromise of security      with respect to an operating or information system or portable electronic      device or a failure to implement system modifications or a new accounting,      actuarial or other operating system effectively could adversely affect the      Company’s results of operations and financial condition or the      effectiveness of internal controls over financial    reporting; |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (26)   | The      occurrence of natural or man-made disasters may adversely affect the      Company’s results of operations and financial condition;    and |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (27)   | The      occurrence of unidentified or unanticipated risks could negatively affect      the Company’s business or result inlosses. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                                                           |   | Three Months Ended June 30, |    |   | $ Increase |   |   | % Increase |   |
|--------------------------------------------------------------------------------|--------|-------------------------------------------------|---------|--------|-----------------|--------|--------|-----------------|--------|
|                                                                           |   | 2010                                            |    |   | 2009            |   |   | (Decrease)      |   |   | (Decrease) |   |
| Revenues:                                                                      |   |                                            |    |   |            |   |   |            |   |   |   |   |
| Net investment income                                                |   | $                                               | 343.5   |   |            | $      | 323.8  |            |   | $ | 19.7 |   |   |   | 6.1 | % |
| Fee income                                                                |   |                                            | 274.1   |   |            |   | 227.5  |            |   |   | 46.6 |   |   |   | 20.5 | % |
| Premiums                                                                       |   |                                            | 226.8   |   |            |   | 142.3  |            |   |   | 84.5 |   |   |   | 59.4 | % |
| Net realized capital gains (losses):                       |   |                                            |    |   |            |   |   |            |   |   |   |   |   |   |   |   |
| Total other-than-temporary impairment losses                    |   |                                            | (48.1   | )      |            |   | (205.7 | )               |   |   | 157.6 |   |   |   | 76.6 | % |
| Portion of other-than-temporary                                 |   |                                            |    |   |            |   |   |            |   |   |   |   |   |   |   |   |
| impairment losses recognized in Other                 |   |                                            |    |   |            |   |   |            |   |   |   |   |   |   |   |   |
| comprehensive income (loss)                                          |   |                                            | 10.5    |   |            |   | 84.9   |            |   |   | (74.4 | ) |   |   | (87.6 | )% |
| Net other-than-temporary impairments                            |   |                                            |    |   |            |   |   |            |   |   |   |   |   |   |   |   |
| recognized in earnings                                               |   |                                            | (37.6   | )      |            |   | (120.8 | )               |   |   | 83.2 |   |   |   | 68.9 | % |
| Other net realized capital gains (losses)             |   |                                            | 659.7   |   |            |   | (781.9 | )               |   |   | 1,441.6 |   |   | NM |   |
| Total net realized capital gains (losses)             |   |                                            | 622.1   |   |            |   | (902.7 | )               |   |   | 1,524.8 |   |   | NM |   |
| Other expense                                                             |   |                                            | (0.1    | )      |            |   | (0.1   | )               |   |   | - |   |   |   | 0.0 | % |
| Total revenue                                                             |   |                                            | 1,466.4 |   |            |   | (209.2 | )               |   |   | 1,675.6 |   |   | NM |   |
| Benefits and expenses:                                               |   |                                            |    |   |            |   |   |            |   |   |   |   |   |   |   |   |
| Interest credited and other benefits                  |   |                                            |    |   |            |   |   |            |   |   |   |   |   |   |   |   |
| to contractowners                                                         |   |                                            | 1,296.3 |   |            |   | 114.5  |            |   |   | 1,181.8 |   |   | NM |   |
| Operating expenses                                                        |   |                                            | 101.7   |   |            |   | 89.0   |            |   |   | 12.7 |   |   |   | 14.3 | % |
| Net amortization of deferred policy acquisition  |   |                                            |    |   |            |   |   |            |   |   |   |   |   |   |   |   |
| costs and value of  business acquired            |   |                                            | 156.0   |   |            |   | (438.2 | )               |   |   | 594.2 |   |   | NM |   |
| Interest expense                                                          |   |                                            | 8.0     |   |            |   | 9.1    |            |   |   | (1.1 | ) |   |   | (12.1 | )% |
| Other expense                                                             |   |                                            | 11.1    |   |            |   | 17.6   |            |   |   | (6.5 | ) |   |   | (36.9 | )% |
| Total benefits and expenses                                     |   |                                            | 1,573.1 |   |            |   | (208.0 | )               |   |   | 1,781.1 |   |   | NM |   |
| Loss before income taxes                                        |   |                                            | (106.7  | )      |            |   | (1.2   | )               |   |   | (105.5 | ) |   | NM |   |
| Income tax (benefit) expense                                    |   |                                            | (54.9   | )      |            |   | 0.9    |            |   |   | (55.8 | ) |   | NM |   |
| Net loss                                                                  |   | $                                               | (51.8   | )      |            | $      | (2.1   | )               |   | $ | (49.7 | ) |   | NM |   |
| Effective tax rate                                                   |   |                                            | 51.5    | %      |            |   | (75.0  | )%              |   |   |   |   |   |   |   |   |

----

|                                                                           |   | Six Months Ended June 30, |    |   | $ Increase |   |     | % Increase |   |
|--------------------------------------------------------------------------------|--------|-----------------------------------------------|---------|--------|-----------------|--------|----------|-----------------|--------|
|                                                                           |   | 2010                                          |    |   | 2009            |   |     | (Decrease)      |   |   | (Decrease) |   |
| Revenues:                                                                      |   |                                          |    |   |            |   |     |            |   |   |   |   |
| Net investment income                                                |   | $                                             | 663.1   |   |            | $      | 704.5    |            |   | $ | (41.4 | ) |   |   | (5.9 | )% |
| Fee income                                                                |   |                                          | 542.3   |   |            |   | 426.9    |            |   |   | 115.4 |   |   |   | 27.0 | % |
| Premiums                                                                       |   |                                          | 276.4   |   |            |   | 256.3    |            |   |   | 20.1 |   |   |   | 7.8 | % |
| Net realized capital gains (losses):                       |   |                                          |    |   |            |   |     |            |   |   |   |   |   |   |   |   |
| Total other-than-temporary impairment losses                    |   |                                          | (119.7  | )      |            |   | (506.0   | )               |   |   | 386.3 |   |   |   | 76.3 | % |
| Portion of other-than-temporary                                 |   |                                          |    |   |            |   |     |            |   |   |   |   |   |   |   |   |
| impairment losses recognized in Other                 |   |                                          |    |   |            |   |     |            |   |   |   |   |   |   |   |   |
| comprehensive income (loss)                                          |   |                                          | 56.5    |   |            |   | 84.9     |            |   |   | (28.4 | ) |   |   | (33.5 | )% |
| Net other-than-temporary impairments                            |   |                                          |    |   |            |   |     |            |   |   |   |   |   |   |   |   |
| recognized in earnings                                               |   |                                          | (63.2   | )      |            |   | (421.1   | )               |   |   | 357.9 |   |   |   | 85.0 | % |
| Other net realized capital gains (losses)             |   |                                          | 422.8   |   |            |   | (633.4   | )               |   |   | 1,056.2 |   |   | NM |   |
| Total net realized capital gains (losses)             |   |                                          | 359.6   |   |            |   | (1,054.5 | )               |   |   | 1,414.1 |   |   | NM |   |
| Other income                                                              |   |                                          | -       |   |            |   | 1.3      |            |   |   | (1.3 | ) |   |   | (100 | )% |
| Total revenue                                                             |   |                                          | 1,841.4 |   |            |   | 334.5    |            |   |   | 1,506.9 |   |   | NM |   |
| Benefits and expenses:                                               |   |                                          |    |   |            |   |     |            |   |   |   |   |   |   |   |   |
| Interest credited and other benefits                  |   |                                          |    |   |            |   |     |            |   |   |   |   |   |   |   |   |
| to contractowners                                                         |   |                                          | 1,481.2 |   |            |   | 614.7    |            |   |   | 866.5 |   |   | NM |   |
| Operating expenses                                                        |   |                                          | 203.1   |   |            |   | 177.3    |            |   |   | 25.8 |   |   |   | 14.6 | % |
| Net amortization of deferred policy acquisition  |   |                                          |    |   |            |   |     |            |   |   |   |   |   |   |   |   |
| costs and value of  business acquired            |   |                                          | 221.6   |   |            |   | (169.6   | )               |   |   | 391.2 |   |   | NM |   |
| Interest expense                                                          |   |                                          | 16.0    |   |            |   | 16.4     |            |   |   | (0.4 | ) |   |   | (2.4 | )% |
| Other expense                                                             |   |                                          | 20.9    |   |            |   | 24.3     |            |   |   | (3.4 | ) |   |   | (14.0 | )% |
| Total benefits and expenses                                     |   |                                          | 1,942.8 |   |            |   | 663.1    |            |   |   | 1,279.7 |   |   | NM |   |
| Loss before income taxes                                        |   |                                          | (101.4  | )      |            |   | (328.6   | )               |   |   | 227.2 |   |   |   | 69.1 | % |
| Income tax benefit                                                   |   |                                          | (56.2   | )      |            |   | (90.9    | )               |   |   | 34.7 |   |   |   | 38.2 | % |
| Net loss                                                                  |   | $                                             | (45.2   | )      |            | $      | (237.7   | )               |   | $ | 192.5 |   |   |   | 81.0 | % |
| Effective tax rate                                                   |   |                                          | 55.4    | %      |            |   | 27.7     | %               |   |   |   |   |   |   |   |   |

----

----

----

|                                              |   |                                                                                     |   |   |   | 2010     |                                                                                     |      | 2009   |
|---------------------------------------------------|--------|------------------------------------------------------------------------------------------|--------|--------|--------|----------|------------------------------------------------------------------------------------------|-----------|--------|
|                                              |   |                                                                                     |   |   |   | Carrying |                                                                                     | % of |   |   | Carrying |   | % of |
|                                              |   |                                                                                     |   |   |   | Value    |                                                                                     | Total     |   |   | Value |   | Total |
| Fixed maturities, available-for-sale,   |   |                                                                                     |   |   |   |     |                                                                                     |      |   |
| including securities pledged            | $      |       20,854.4                                        |   | 74.6%  |   | $        |       18,249.0                                        |      | 71.3%  |
| Equity securities, available-for-sale   |   |            128.9             |   | 0.5%   |   |     |            154.3             |      | 0.6%   |
| Short-term investments                       |   |         2,133.2                             |   | 7.6%   |   |     |         2,044.0                             |      | 8.0%   |
| Mortgage loans on real estate |   |         3,125.1                             |   | 11.2%  |   |     |         3,413.2                             |      | 13.3%  |
| Policy loans                                 |   |            127.4             |   | 0.4%   |   |     |            131.6             |      | 0.5%   |
| Loan - Dutch State obligation |   |            898.5             |   | 3.2%   |   |     |         1,026.0                             |      | 4.0%   |
| Limited partnerships/corporations            |   |            272.8             |   | 1.0%   |   |     |            252.6             |      | 1.0%   |
| Derivatives                                       |   |            383.1             |   | 1.4%   |   |     |            317.4             |      | 1.2%   |
| Other investments                            |   |              23.5  |   | 0.1%   |   |     |              23.9  |      | 0.1%   |
| Total investments                            | $      |       27,946.9                                        |   | 100.0% |   | $        |       25,612.0                                        |      | 100.0% |

----

|                                                                                                                                                         |   |      |     |   | Gross      |   |    | Gross      |   |   |    |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|----------|--------|------------|--------|---------|------------|--------|--------|---------|--------|--------|--------|--------|
|                                                                                                                                                         |   |      |     |   | Unrealized |   |    | Unrealized |   |   |    |   |   |   |   |
|                                                                                                                                                         |   | Amortized |     |   | Capital    |   |    | Capital    |   |   |    |   |   | Fair   |   |
|                                                                                                                                                         |   | Cost      |     |   | Gains      |   |    | Losses     |   |   | OTTI(2) |   |   | Value  |   |
| Fixed maturities:                                                                                                                                       |   |      |     |   |       |   |    |       |   |   |    |   |   |   |   |
| U.S. Treasuries                                                                                                                                         |   | $         | 3,030.5  |   |       | $      | 145.2   |       |   | $      | -       |   |   | $      | -      |   |   | $ | 3,175.7 |   |
| U.S. government agencies                                                                                                                      |   |      |     |   |       |   |    |       |   |   |    |   |   |   |   |   |   |   |   |   |
| and authorities                                                                                                                                         |   |      | 41.9     |   |       |   | 1.7     |       |   |   | 0.1     |   |   |   | -      |   |   |   | 43.5 |   |
| State, municipalities, and                                                                                                                    |   |      |     |   |       |   |    |       |   |   |    |   |   |   |   |   |   |   |   |   |
| political subdivisions                                                                                                                                  |   |      | 86.4     |   |       |   | 4.6     |       |   |   | 6.3     |   |   |   | -      |   |   |   | 84.7 |   |
|                                                                                                                                                         |   |      |     |   |       |   |    |       |   |   |    |   |   |   |   |   |   |   |   |   |
| U.S. corporate securities:                                                                                                                         |   |      |     |   |       |   |    |       |   |   |    |   |   |   |   |   |   |   |   |   |
| Public utilities                                                                                                                                        |   |      | 1,138.1  |   |       |   | 90.3    |       |   |   | 3.7     |   |   |   | -      |   |   |   | 1,224.7 |   |
| Other corporate securities                                                                                                                         |   |      | 5,448.2  |   |       |   | 357.3   |       |   |   | 40.8    |   |   |   | 0.3    |   |   |   | 5,764.4 |   |
| Total U.S. corporate securities                                                                                                               |   |      | 6,586.3  |   |       |   | 447.6   |       |   |   | 44.5    |   |   |   | 0.3    |   |   |   | 6,989.1 |   |
|                                                                                                                                                         |   |      |     |   |       |   |    |       |   |   |    |   |   |   |   |   |   |   |   |   |
| Foreign securities(1):                                                                                                                                  |   |      |     |   |       |   |    |       |   |   |    |   |   |   |   |   |   |   |   |   |
| Government                                                                                                                                                   |   |      | 428.6    |   |       |   | 34.2    |       |   |   | 3.6     |   |   |   | -      |   |   |   | 459.2 |   |
| Other                                                                                                                                                        |   |      | 3,487.2  |   |       |   | 185.3   |       |   |   | 41.2    |   |   |   | 0.1    |   |   |   | 3,631.2 |   |
| Total foreign securities                                                                                                                           |   |      | 3,915.8  |   |       |   | 219.5   |       |   |   | 44.8    |   |   |   | 0.1    |   |   |   | 4,090.4 |   |
|                                                                                                                                                         |   |      |     |   |       |   |    |       |   |   |    |   |   |   |   |   |   |   |   |   |
| Residential mortgage-backed securities                                                                                                             |   |      | 1,982.1  |   |       |   | 241.1   |       |   |   | 75.2    |   |   |   | 74.9   |   |   |   | 2,073.1 |   |
| Commercial mortgage-backed securities                                                                                                              |   |      | 2,628.7  |   |       |   | 78.4    |       |   |   | 241.8   |   |   |   | 6.6    |   |   |   | 2,458.7 |   |
| Other asset-backed securities                                                                                                                      |   |      | 2,193.0  |   |       |   | 15.4    |       |   |   | 217.4   |   |   |   | 51.8   |   |   |   | 1,939.2 |   |
|                                                                                                                                                         |   |      |     |   |       |   |    |       |   |   |    |   |   |   |   |   |   |   |   |   |
| Total fixed maturities, including                                                                                                        |   |      |     |   |       |   |    |       |   |   |    |   |   |   |   |   |   |   |   |   |
| securities pledged                                                                                                                                      |   |      | 20,464.7 |   |       |   | 1,153.5 |       |   |   | 630.1   |   |   |   | 133.7  |   |   |   | 20,854.4 |   |
| Less: securities pledged                                                                                                                           |   |      | 641.8    |   |       |   | 36.9    |       |   |   | 1.1     |   |   |   | -      |   |   |   | 677.6 |   |
| Total fixed maturities                                                                                                                             |   | $         | 19,822.9 |   |       | $      | 1,116.6 |       |   | $      | 629.0   |   |   | $      | 133.7  |   |   | $ | 20,176.8 |   |
| (1)   Primarily U.S. dollar denominated.                                                                                       |   |      |     |   |       |   |    |       |   |   |    |   |   |   |   |   |   |   |   |   |
| (2) Represents other-than-temporary impairments reported as a component of Other comprehensive income |   |
| ("noncredit impairments").                                                                                                                              |   |      |     |   |       |   |    |       |   |   |    |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                         |   |      |     |   | Gross      |   |   | Gross      |   |   |    |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|----------|--------|------------|--------|--------|------------|--------|--------|---------|--------|--------|--------|--------|
|                                                                                                                                                         |   |      |     |   | Unrealized |   |   | Unrealized |   |   |    |   |   |   |   |
|                                                                                                                                                         |   | Amortized |     |   | Capital    |   |   | Capital    |   |   |    |   |   | Fair   |   |
|                                                                                                                                                         |   | Cost      |     |   | Gains      |   |   | Losses     |   |   | OTTI(2) |   |   | Value  |   |
| Fixed maturities:                                                                                                                                       |   |      |     |   |       |   |   |       |   |   |    |   |   |   |   |
| U.S. Treasuries                                                                                                                                         |   | $         | 4,201.0  |   |       | $      | 2.5    |       |   | $      | 80.0    |   |   | $      | -      |   |   | $ | 4,123.5 |   |
| U.S. government agencies and authorities                                                                                                 |   |      | 26.1     |   |       |   | 0.1    |       |   |   | 1.6     |   |   |   | -      |   |   |   | 24.6 |   |
| State, municipalities, and political                                                                                                     |   |      |     |   |       |   |   |       |   |   |    |   |   |   |   |   |   |   |   |   |
| subdivisions                                                                                                                                                 |   |      | 47.8     |   |       |   | 2.2    |       |   |   | 5.2     |   |   |   | -      |   |   |   | 44.8 |   |
|                                                                                                                                                         |   |      |     |   |       |   |   |       |   |   |    |   |   |   |   |   |   |   |   |   |
| U.S. corporate securities:                                                                                                                         |   |      |     |   |       |   |   |       |   |   |    |   |   |   |   |   |   |   |   |   |
| Public utilities                                                                                                                                        |   |      | 997.4    |   |       |   | 57.5   |       |   |   | 6.9     |   |   |   | -      |   |   |   | 1,048.0 |   |
| Other corporate securities                                                                                                                         |   |      | 4,290.8  |   |       |   | 247.8  |       |   |   | 71.8    |   |   |   | 0.4    |   |   |   | 4,466.4 |   |
| Total U.S. corporate securities                                                                                                               |   |      | 5,288.2  |   |       |   | 305.3  |       |   |   | 78.7    |   |   |   | 0.4    |   |   |   | 5,514.4 |   |
|                                                                                                                                                         |   |      |     |   |       |   |   |       |   |   |    |   |   |   |   |   |   |   |   |   |
| Foreign securities(1):                                                                                                                                  |   |      |     |   |       |   |   |       |   |   |    |   |   |   |   |   |   |   |   |   |
| Government                                                                                                                                                   |   |      | 369.8    |   |       |   | 23.8   |       |   |   | 8.3     |   |   |   | -      |   |   |   | 385.3 |   |
| Other                                                                                                                                                        |   |      | 2,880.8  |   |       |   | 131.7  |       |   |   | 78.5    |   |   |   | 0.4    |   |   |   | 2,933.6 |   |
| Total foreign securities                                                                                                                           |   |      | 3,250.6  |   |       |   | 155.5  |       |   |   | 86.8    |   |   |   | 0.4    |   |   |   | 3,318.9 |   |
|                                                                                                                                                         |   |      |     |   |       |   |   |       |   |   |    |   |   |   |   |   |   |   |   |   |
| Residential mortgage-backed securities                                                                                                             |   |      | 1,758.9  |   |       |   | 210.7  |       |   |   | 150.7   |   |   |   | 70.9   |   |   |   | 1,748.0 |   |
| Commercial mortgage-backed securities                                                                                                              |   |      | 3,012.5  |   |       |   | 25.3   |       |   |   | 448.2   |   |   |   | -      |   |   |   | 2,589.6 |   |
| Other asset-backed securities                                                                                                                      |   |      | 1,218.6  |   |       |   | 11.8   |       |   |   | 316.8   |   |   |   | 28.4   |   |   |   | 885.2 |   |
|                                                                                                                                                         |   |      |     |   |       |   |   |       |   |   |    |   |   |   |   |   |   |   |   |   |
| Total fixed maturities, including securities                                                                                        |   |      |     |   |       |   |   |       |   |   |    |   |   |   |   |   |   |   |   |   |
| pledged                                                                                                                                                      |   |      | 18,803.7 |   |       |   | 713.4  |       |   |   | 1,168.0 |   |   |   | 100.1  |   |   |   | 18,249.0 |   |
| Less: securities pledged                                                                                                                           |   |      | 1,079.4  |   |       |   | 35.3   |       |   |   | 22.2    |   |   |   | -      |   |   |   | 1,092.5 |   |
| Total fixed maturities                                                                                                                             |   | $         | 17,724.3 |   |       | $      | 678.1  |       |   | $      | 1,145.8 |   |   | $      | 100.1  |   |   | $ | 17,156.5 |   |
| (1)  Primarily U.S. dollar denominated.                                                                                             |   |      |     |   |       |   |   |       |   |   |    |   |   |   |   |   |   |   |   |   |
| (2) Represents other-than-temporary impairments reported as a component of Other comprehensive income |   |
| ("noncredit impairments").                                                                                                                              |   |      |     |   |       |   |   |       |   |   |    |   |   |   |   |   |   |   |   |   |

----

|                  |   | 2010                                                                          |
|-----------------------|--------|-------------------------------------------------------------------------------|
|                  |   | Fair                                                                          |   | % of |   |   | Amortized |   | % of |
|                  |   | Value                                                                         |   | Total |   |   | Cost |   | Total |
| AAA                   | $      |         7,501.9                  |   | 36.0% |   | $ |         7,140.9  |   | 34.9% |
| AA                    |   |         1,360.6                  |   | 6.5% |   |   |         1,413.8  |   | 6.9% |
| A                     |   |         4,588.7                  |   | 22.0% |   |   |         4,409.8  |   | 21.5% |
| BBB                   |   |         5,913.6                  |   | 28.4% |   |   |         5,712.2  |   | 27.9% |
| BB                    |   |            709.7  |   | 3.4% |   |   |            768.8  |   | 3.8% |
| B and below |   |            779.9  |   | 3.7% |   |   |         1,019.2  |   | 5.0% |
| Total                 | $      |       20,854.4                             |   | 100.0% |   | $ |       20,464.7  |   | 100.0% |
|                  |   |                                                                          |   |   |   |   |   |   |   |
|                  |   | 2009                                                                          |
|                  |   | Fair                                                                          |   | % of |   |   | Amortized |   | % of |
|                  |   | Value                                                                         |   | Total |   |   | Cost |   | Total |
| AAA                   | $      |         7,577.0                  |   | 41.5% |   | $ |         7,658.8  |   | 40.7% |
| AA                    |   |            896.7  |   | 4.9% |   |   |         1,028.9  |   | 5.5% |
| A                     |   |         3,440.2                  |   | 18.9% |   |   |         3,465.0  |   | 18.4% |
| BBB                   |   |         5,029.9                  |   | 27.6% |   |   |         4,992.4  |   | 26.6% |
| BB                    |   |            720.8  |   | 3.9% |   |   |            861.4  |   | 4.6% |
| B and below |   |            584.4  |   | 3.2% |   |   |            797.2  |   | 4.2% |
| Total                 | $      |       18,249.0                             |   | 100.0% |   | $ |       18,803.7  |   | 100.0% |

|                                                          |   | 2010                                                                                     |
|---------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|
|                                                          |   | Fair                                                                                     |   | % of |   |   | Amortized |   | % of |
|                                                          |   | Value                                                                                    |   | Total |   |   | Cost |   | Total |
| U.S. Treasuries                                          | $      |         3,175.7                             |   | 15.2% |   | $ |         3,030.5  |   | 14.8% |
| U.S. government agencies and authorities  |   |              43.5  |   | 0.2% |   |   |              41.9  |   | 0.2% |
| U.S. corporate, state, and municipalities |   |         7,073.8                             |   | 33.9% |   |   |         6,672.7  |   | 32.6% |
| Foreign                                                       |   |         4,090.4                             |   | 19.6% |   |   |         3,915.8  |   | 19.1% |
| Residential mortgage-backed                              |   |         2,073.1                             |   | 10.0% |   |   |         1,982.1  |   | 9.7% |
| Commercial mortgage-backed                               |   |         2,458.7                             |   | 11.8% |   |   |         2,628.7  |   | 12.9% |
| Other asset-backed                                       |   |         1,939.2                             |   | 9.3% |   |   |         2,193.0  |   | 10.7% |
| Total                                                         | $      |       20,854.4                                        |   | 100.0% |   | $ |       20,464.7  |   | 100.0% |

----

|                                                          |   | 2009                                                                                     |
|---------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|
|                                                          |   | Fair                                                                                     |   | % of |   |   | Amortized |   | % of |
|                                                          |   | Value                                                                                    |   | Total |   |   | Cost |   | Total |
| U.S. Treasuries                                          | $      |         4,123.5                             |   | 22.6% |   | $ |         4,201.0  |   | 22.3% |
| U.S. government agencies and authorities  |   |              24.6  |   | 0.1% |   |   |              26.1  |   | 0.1% |
| U.S. corporate, state, and municipalities |   |         5,559.2                             |   | 30.5% |   |   |         5,336.0  |   | 28.4% |
| Foreign                                                       |   |         3,318.9                             |   | 18.2% |   |   |         3,250.6  |   | 17.3% |
| Residential mortgage-backed                              |   |         1,748.0                             |   | 9.6% |   |   |         1,758.9  |   | 9.4% |
| Commercial mortgage-backed                               |   |         2,589.6                             |   | 14.2% |   |   |         3,012.5  |   | 16.0% |
| Other asset-backed                                       |   |            885.2             |   | 4.8% |   |   |         1,218.6  |   | 6.5% |
| Total                                                         | $      |       18,249.0                                        |   | 100.0% |   | $ |       18,803.7  |   | 100.0% |

|                                                               |   | Amortized |     |   | Fair   |   |
|--------------------------------------------------------------------|--------|-----------|----------|--------|--------|--------|
|                                                               |   | Cost      |     |   | Value  |   |
| Due to mature:                                           |   |      |     |   |   |   |
| One year or less                                    |   | $         | 399.7    |   |   | $      | 405.8 |   |
| After one year through five years         |   |      | 5,420.1  |   |   |   | 5,653.2 |   |
| After five years through ten years        |   |      | 4,161.3  |   |   |   | 4,427.1 |   |
| After ten years                                          |   |      | 3,679.8  |   |   |   | 3,897.3 |   |
| Mortgage-backed securities                                    |   |      | 4,610.8  |   |   |   | 4,531.8 |   |
| Other asset-backed securities                            |   |      | 2,193.0  |   |   |   | 1,939.2 |   |
| Less: securities pledged                                 |   |      | 641.8    |   |   |   | 677.6 |   |
| Fixed maturities, excluding securities pledged |   | $         | 19,822.9 |   |   | $      | 20,176.8 |   |

----

| 2010                                     |   | 2009    |
|------------------------------------------|--------|---------|
| % of Total Subprime  |   |    |   |   |   | % of Total Subprime  |   |   |   |   |
| Mortgage-backed                     |   |    |   |   |   | Mortgage-backed  |   |   |   |   |
| Securities                               |   | Vintage |   | Securities |   | Vintage |
| AAA                                      |   | 27.1%   |   | 2007 |   | 39.6% |   | AAA |   | 33.7% |   | 2007 |   | 38.7% |
| AA                                       |   | 19.3%   |   | 2006 |   | 6.9% |   | AA |   | 20.7% |   | 2006 |   | 7.2% |
| A                                        |   | 8.0%    |   | 2005 and prior |   | 53.5% |   | A |   | 6.9% |   | 2005 and prior |   | 54.1% |
| BBB                                      |   | 8.8%    |   |   |   | 100.0% |   | BBB |   | 8.3% |   |   |   | 100.0% |
| BB and below                   |   | 36.8%   |   |   |   |   |   | BB and below |   | 30.4% |   |   |   |   |
|                                     |   | 100.0%  |   |   |   |   |   |   |   | 100.0% |   |   |   |   |

----

| 2010                            |   | 2009    |
|---------------------------------|--------|---------|
| % of Total Alt-A |   |    |   |   |   | % of Total Alt-A |   |   |   |   |
| Mortgage-backed            |   |    |   |   |   | Mortgage-backed  |   |   |   |   |
| Securities                      |   | Vintage |   | Securities |   | Vintage |
| AAA                             |   | 20.4%   |   | 2007 |   | 29.6% |   | AAA |   | 27.9% |   | 2007 |   | 30.4% |
| AA                              |   | 1.5%    |   | 2006 |   | 19.8% |   | AA |   | 1.8% |   | 2006 |   | 20.1% |
| A                               |   | 0.0%    |   | 2005 and prior |   | 50.6% |   | A |   | 0.8% |   | 2005 and prior |   | 49.5% |
| BBB                             |   | 0.9%    |   |   |   | 100.0% |   | BBB |   | 6.9% |   |   |   | 100.0% |
| BB and below          |   | 77.2%   |   |   |   |   |   | BB and below |   | 62.6% |   |   |   |   |
|                            |   | 100.0%  |   |   |   |   |   |   |   | 100.0% |   |   |   |   |

----

| 2010                           |   | 2009    |
|--------------------------------|--------|---------|
| % of Total CMBS |   | Vintage |   | % of Total CMBS |   | Vintage |
| AAA                            |   | 52.0%   |   | 2008 |   | 0.3% |   | AAA |   | 66.8% |   | 2008 |   | 0.5% |
| AA                             |   | 13.6%   |   | 2007 |   | 27.3% |   | AA |   | 9.6% |   | 2007 |   | 26.2% |
| A                              |   | 18.3%   |   | 2006 |   | 29.9% |   | A |   | 14.2% |   | 2006 |   | 29.9% |
| BBB                            |   | 11.4%   |   | 2005 and prior |   | 42.5% |   | BBB |   | 6.4% |   | 2005 and prior |   | 43.4% |
| BB and below         |   | 4.7%    |   |   |   | 100.0% |   | BB and below |   | 3.0% |   |   |   | 100.0% |
|                           |   | 100.0%  |   |   |   |   |   |   |   | 100.0% |   |   |   |   |

| 2010                                     |   | 2009    |
|------------------------------------------|--------|---------|
| % of Total other ABS |   | Vintage |   | % of Total other ABS |   | Vintage |
| AAA                                      |   | 80.0%   |   | 2010 |   | 6.0% |   | AAA |   | 32.9% |   | 2008 |   | 0.0% |
| AA                                       |   | 8.3%    |   | 2009 |   | 24.6% |   | AA |   | 21.3% |   | 2007 |   | 9.7% |
| A                                        |   | 1.5%    |   | 2008 |   | 8.2% |   | A |   | 16.6% |   | 2006 |   | 36.5% |
| BBB                                      |   | 8.5%    |   | 2007 |   | 18.8% |   | BBB |   | 24.7% |   | 2005 and prior |   | 53.8% |
| BB and below                   |   | 1.7%    |   | 2006 |   | 17.4% |   | BB and below |   | 4.5% |   |   |   | 100.0% |
|                                     |   | 100.0%  |   | 2005 and prior |   | 25.0% |   |   |   | 100.0% |   |   |   |   |
|                                     |   |    |   |   |   | 100.0% |   |   |   |   |   |   |   |   |

----

|                                           |                                                                                                            |   |                                                                                              |                                                                                                                         |   |                                                                                              |                                                                                                                         | 2010(1) |   |   | 2009(1) |
|------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|---------|--------|--------|---------|
| Loan to Value Ratio:            |                                                                                                            |   |                                                                                              |                                                                                                                         |   |                                                                                              |
|                                           | 0% - 50%                                                                                              |   | $                                                                                                 |               1,311.6                             |   | $                                                                                                 |               1,541.0                             |
|                                           | 50% - 60%                                                                                             |   |                                                                                              |                  735.3             |   |                                                                                              |                  742.5             |
|                                           | 60% - 70%                                                                                             |   |                                                                                              |                  810.1             |   |                                                                                              |                  845.0             |
|                                           | 70% - 80%                                                                                             |   |                                                                                              |                  248.4             |   |                                                                                              |                  264.9             |
|                                           | 80% - 90%                                                                                             |   |                                                                                              |                    22.9  |   |                                                                                              |                    23.9  |
| Total Commercial Mortgage Loans |                                                                                                            | $      |               3,128.3  |                                                                                                                         | $      |               3,417.3  |
| (1)                                            | Balances do not include allowance for mortgage loan credit losses. |   |                                                                                              |                                                                                                                         |   |                                                                                              |

|                                           |                                                                                                                               |   |                                                                                              |                                                                                                              |   |                                                                                              |                                                                                                              | 2010(1)(2) |   |   | 2009(1)(2) |
|------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|------------|--------|--------|------------|
| Debt Service Coverage Ratio:    |                                                                                                                               |   |                                                                                              |                                                                                                              |   |                                                                                              |
|                                           | Greater than 1.5x                                                                                                        |   | $                                                                                                 |               2,170.7                  |   | $                                                                                                 |               2,356.1                  |
|                                           | 1.25x - 1.5x                                                                                                             |   |                                                                                              |                  338.3  |   |                                                                                              |                  371.5  |
|                                           | 1.0x - 1.25x                                                                                                             |   |                                                                                              |                  311.2  |   |                                                                                              |                  284.1  |
|                                           | Less than 1.0x                                                                                                           |   |                                                                                              |                  159.8  |   |                                                                                              |                  219.5  |
| Total Commercial Mortgage Loans |                                                                                                                               | $      |               2,980.0  |                                                                                                              | $      |               3,231.2  |
| (1)                                            | Balances do not include allowance for mortgage loan credit losses.                    |   |                                                                                              |                                                                                                              |   |                                                                                              |
| (2)                                            | Excludes mortgages that are secured by loans on land or construction deals. |   |                                                                                              |                                                                                                              |

----

|                                                                                                               |   | 2010(1)             |    |   | 2009(1)              |   |
|--------------------------------------------------------------------------------------------------------------------|--------|---------------------|---------|--------|----------------------|--------|
|                                                                                                               |   | Gross               |    |   |                 |   |   | Gross |   |   |   |   |
|                                                                                                               |   | Carrying Value |    |   | % of Total |   |   | Carrying Value |   |   | % of Total |   |
| Commercial Mortgage Loans                                                                           |   |                |    |   |                 |   |   |   |   |   |   |   |
| by US Region:                                                                                            |   |                |    |   |                 |   |   |   |   |   |   |   |
|  Pacific                                                                                                      |   | $                   | 789.8   |   |                 |   | 25.3 | % |   | $ | 894.6 |   |   |   | 26.2 | % |
|  South Atlantic                                                                                          |   |                | 589.3   |   |                 |   | 18.8 | % |   |   | 649.7 |   |   |   | 19.0 | % |
|  Middle Atlantic                                                                                         |   |                | 408.2   |   |                 |   | 13.0 | % |   |   | 465.7 |   |   |   | 13.6 | % |
|  East North Central                                                                                 |   |                | 358.2   |   |                 |   | 11.5 | % |   |   | 401.6 |   |   |   | 11.8 | % |
|  West South Central                                                                                 |   |                | 363.8   |   |                 |   | 11.6 | % |   |   | 371.0 |   |   |   | 10.9 | % |
|  Mountain                                                                                                     |   |                | 370.1   |   |                 |   | 11.8 | % |   |   | 375.8 |   |   |   | 11.0 | % |
|  New England                                                                                             |   |                | 89.4    |   |                 |   | 2.9 | % |   |   | 90.6 |   |   |   | 2.6 | % |
|  West North Central                                                                                 |   |                | 93.8    |   |                 |   | 3.0 | % |   |   | 100.8 |   |   |   | 2.9 | % |
|  East South Central                                                                                 |   |                | 65.7    |   |                 |   | 2.1 | % |   |   | 67.5 |   |   |   | 2.0 | % |
| Total Commercial Mortgage Loans                                                                     |   | $                   | 3,128.3 |   |                 |   | 100.0 | % |   | $ | 3,417.3 |   |   |   | 100.0 | % |
| (1)Balances do not include allowance for mortgage loan credit losses. |   |

|                                                                                                               |   |   |                                                                                                                                     |   |   |   |   | 2010(1)                                                                                                                                  |   |                 | 2009(1) |
|--------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|
|                                                                                                               |   |   |                                                                                                                                     |   |   |   |   | Gross                                                                                                                                    |   |                 |    |   | Gross |   |   |
|                                                                                                               |   |   |                                                                                                                                     |   |   |   |   | Carrying Value                                                                                                                      |   | % of Total |    |   | Carrying Value |   | % of Total |
| Commercial Mortgage Loans                                                                           |   |   |                                                                                                                                     |   |   |   |   |                                                                                                                                     |   |                 |
| by Property Type:                                                                                        |   |   |                                                                                                                                     |   |   |   |   |                                                                                                                                     |   |                 |
| Apartments                                                                                                         |   | $      |                    532.2             |   | 17.0%  |   | $      |                    547.7             |   | 16.0%                |
| Hotel/Motel                                                                                                        |   |   |                    178.2             |   | 5.7%   |   |   |                    180.5             |   | 5.3%                 |
| Industrial                                                                                                         |   |   |                 1,005.0                             |   | 32.1%  |   |   |                 1,105.7                             |   | 32.3%                |
| Mixed Use                                                                                                     |   |   |                      10.7  |   | 0.4%   |   |   |                      16.2  |   | 0.5%                 |
| Office                                                                                                             |   |   |                    589.2             |   | 18.8%  |   |   |                    703.5             |   | 20.6%                |
| Other                                                                                                              |   |   |                    105.4             |   | 3.4%   |   |   |                    136.0             |   | 4.0%                 |
| Retail                                                                                                             |   |   |                    707.6             |   | 22.6%  |   |   |                    727.7             |   | 21.3%                |
| Total Commercial Mortgage Loans                                                                     |   | $      |                 3,128.3                             |   | 100.0% |   | $      |                 3,417.3                             |   | 100.0%               |
| (1)Balances do not include allowance for mortgage loan credit losses. |

|                                                                                                               |   |   |                                                                                                                         |   |   |                                                                                                                                                          |   | 2010(1) |   |   | 2009(1) |
|--------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|---------|
| Year of Origination:                                                                                     |   |   |                                                                                                                         |   |   |                                                                                                                                                          |
| 2010                                                                                                               |   | $      |                    36.0  |   | $      |                         -   |
| 2009                                                                                                               |   |   |                    34.9  |   |   |                    36.7                                   |
| 2008                                                                                                               |   |   |                  452.4             |   |   |                  477.6                                              |
| 2007                                                                                                               |   |   |                  548.4             |   |   |                  601.8                                              |
| 2006                                                                                                               |   |   |                  343.6             |   |   |                  385.1                                              |
| 2005 and prior                                                                                           |   |   |               1,713.0                             |   |   |               1,916.1                                                              |
| Total Commercial Mortgage Loans                                                                     |   | $      |               3,128.3                             |   | $      |               3,417.3                                                              |
| (1)Balances do not include allowance for mortgage loan credit losses. |   |   |                                                                                                                         |   |   |                                                                                                                                                          |

----

|                                         |   |                                                      | 2010   |   |              | 2009   |
|----------------------------------------------|--------|-----------------------------------------------------------|--------|--------|-------------------|--------|
|                                         |   |                                                      |   |   | % of IG |   |   |   |   | % of IG |   |   |   |   | % of IG |   |   |   |   | % of IG |
|                                         |   |                                                      | IG     |   | and BIG      |   |   | BIG |   | and BIG |   |   | IG |   | and BIG |   |   | BIG |   | and BIG |
| Six months or less            |   |                                                      |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| below amortized cost               | $      |       44.8             |   | 5.9%   |              | $      |      3.5  |   | 0.5% |   | $ |     170.1  |   | 13.5% |   | $ |    21.2  |   | 1.7% |
| More than six months          |   |                                                      |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and twelve months                  |   |                                                      |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| or less below                      |   |                                                      |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| amortized cost                          |   |         3.4  |   | 0.4%   |              |   |      3.2  |   | 0.4% |   |   |     259.3  |   | 20.4% |   |   |  200.8  |   | 15.8% |
| More than twelve months       |   |                                                      |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| below amortized cost               |   |     342.6                        |   | 44.8%  |              |   |  366.3  |   | 48.0% |   |   |     419.0  |   | 33.0% |   |   |  197.7  |   | 15.6% |
| Total unrealized capital loss | $      |     390.8                        |   | 51.1%  |              | $      |  373.0  |   | 48.9% |   | $ |     848.4  |   | 66.9% |   |  $  |  419.7  |   | 33.1% |

|                                                 |   |            |    |   | More Than           |   |    |               |   |   |       |   |
|------------------------------------------------------|--------|-----------------|---------|--------|--------------------------|--------|---------|--------------------|--------|--------|------------|--------|
|                                                 |   | Six Months |    |   | Six Months          |   |    | More Than     |   |   |       |   |
|                                                 |   | or Less    |    |   | and Twelve          |   |    | Twelve Months |   |   | Total      |   |
|                                                 |   | Below           |    |   | Months or Less |   |    | Below              |   |   | Unrealized |   |
|                                                 |   | Amortized       |    |   | Below                    |   |    | Amortized          |   |   | Capital    |   |
| 2010                                                 |   | Cost            |    |   | Amortized Cost      |   |    | Cost               |   |   | Losses     |   |
| Interest rate or spread widening |   | $               | 25.4    |   |                     | $      | 3.4     |               |   | $      | 67.3       |   |   | $ | 96.1 |   |
| Mortgage and other asset-backed  |   |            |    |   |                     |   |    |               |   |   |       |   |   |   |   |   |
| securities                                           |   |            | 22.9    |   |                     |   | 3.2     |               |   |   | 641.6      |   |   |   | 667.7 |   |
| Total unrealized capital loss         |   | $               | 48.3    |   |                     | $      | 6.6     |               |   | $      | 708.9      |   |   | $ | 763.8 |   |
| Fair value                                      |   | $               | 1,849.6 |   |                     | $      | 58.4    |               |   | $      | 2,466.6    |   |   | $ | 4,374.6 |   |
|                                                 |   |            |    |   |                     |   |    |               |   |   |       |   |   |   |   |   |
| 2009                                                 |   |            |    |   |                     |   |    |               |   |   |       |   |   |   |   |   |
| Interest rate or spread widening |   | $               | 99.3    |   |                     | $      | 31.6    |               |   | $      | 122.2      |   |   | $ | 253.1 |   |
| Mortgage and other asset-backed  |   |            |    |   |                     |   |    |               |   |   |       |   |   |   |   |   |
| securities                                           |   |            | 92.0    |   |                     |   | 428.5   |               |   |   | 494.5      |   |   |   | 1,015.0 |   |
| Total unrealized capital loss         |   | $               | 191.3   |   |                     | $      | 460.1   |               |   | $      | 616.7      |   |   | $ | 1,268.1 |   |
| Fair value                                      |   | $               | 5,275.9 |   |                     | $      | 1,058.2 |               |   | $      | 2,714.5    |   |   | $ | 9,048.6 |   |

----

|                                   |                              |   |    |                           |       |   |                | More Than Six     |   |              |                       |   |            |   |   |              |       |   |            |   |   |
|----------------------------------------|-----------------------------------|--------|---------|--------------------------------|------------|--------|---------------------|-----------------------------|--------|-------------------|----------------------------|--------|-----------------|--------|--------|-------------------|------------|--------|-----------------|--------|--------|
|                                   |                              |   |    |                           |       |   |                | Months and Twelve |   |              | More Than Twelve |   |            |   |   |              |       |   |
|                                   | Six Months or Less |   |    | Months or Less       |       |   | Months Below   |                        |   |              |                       |   |            |   |
|                                   | Below Amortized Cost    |   |    | Below Amortized Cost |       |   | Amortized Cost |                        |   | Total             |                       |
|                                   |                              |   |    |                           | Unrealized |   |                |                        |   |              | Unrealized                 |   |            |   |   |              | Unrealized |   |            |   |   |   | Unrealized |   |
|                                   | Fair Value                   |   |    | Capital Loss              |       |   | Fair Value     |                        |   | Capital Loss |                       |   | Fair Value |   |   | Capital Loss |       |   | Fair Value |   |   | Capital Loss |   |
| 2010                                   |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |
| U.S. government              |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |
| agencies and                      |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |
| authorities                            |                              | $      | -       |                           |       | $      | -                   |                        |   | $                 | -                          |   |            | $      | -      |              |       | $      | 8.9             |   |   | $ | 0.1 |   |   | $ | 8.9 |   |   | $ | 0.1 |   |
| U.S. corporate, state,  |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and municipalities                |                              |   | 422.4   |                           |       |   | 11.0                |                        |   |              | 33.2                       |   |            |   | 2.6    |              |       |   | 357.9           |   |   |   | 37.5 |   |   |   | 813.5 |   |   |   | 51.1 |   |
| Foreign                                |                              |   | 366.1   |                           |       |   | 14.4                |                        |   |              | 13.9                       |   |            |   | 0.8    |              |       |   | 255.6           |   |   |   | 29.7 |   |   |   | 635.6 |   |   |   | 44.9 |   |
| Residential                       |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| mortgage-backed                        |                              |   | 151.5   |                           |       |   | 2.4                 |                        |   |              | 6.4                        |   |            |   | 2.2    |              |       |   | 419.0           |   |   |   | 145.5 |   |   |   | 576.9 |   |   |   | 150.1 |   |
| Commercial                        |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| mortgage-backed                        |                              |   | 245.2   |                           |       |   | 19.9                |                        |   |              | 3.8                        |   |            |   | 0.3    |              |       |   | 820.2           |   |   |   | 228.2 |   |   |   | 1,069.2 |   |   |   | 248.4 |   |
| Other asset-backed                |                              |   | 664.4   |                           |       |   | 0.6                 |                        |   |              | 1.1                        |   |            |   | 0.7    |              |       |   | 605.0           |   |   |   | 267.9 |   |   |   | 1,270.5 |   |   |   | 269.2 |   |
| Total                                  |                              | $      | 1,849.6 |                           |       | $      | 48.3                |                        |   | $                 | 58.4                       |   |            | $      | 6.6    |              |       | $      | 2,466.6         |   |   | $ | 708.9 |   |   | $ | 4,374.6 |   |   | $ | 763.8 |   |
|                                   |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                                   |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasuries                   |                              | $      | 3,761.2 |                           |       | $      | 80.0                |                        |   | $                 | -                          |   |            | $      | -      |              |       | $      | -               |   |   | $ | - |   |   | $ | 3,761.2 |   |   | $ | 80.0 |   |
| U.S. government              |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| agencies                          |                              |   | 15.2    |                           |       |   | 0.8                 |                        |   |              | 8.2                        |   |            |   | 0.8    |              |       |   | -               |   |   |   | - |   |   |   | 23.4 |   |   |   | 1.6 |   |
| and authorities                   |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. corporate, state,  |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and municipalities                |                              |   | 273.8   |                           |       |   | 6.7                 |                        |   |              | 108.1                      |   |            |   | 13.5   |              |       |   | 737.7           |   |   |   | 64.1 |   |   |   | 1,119.6 |   |   |   | 84.3 |   |
| Foreign                                |                              |   | 228.1   |                           |       |   | 11.8                |                        |   |              | 107.8                      |   |            |   | 17.3   |              |       |   | 472.6           |   |   |   | 58.1 |   |   |   | 808.5 |   |   |   | 87.2 |   |
| Residential                       |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| mortgage-backed                        |                              |   | 139.1   |                           |       |   | 46.5                |                        |   |              | 183.5                      |   |            |   | 92.3   |              |       |   | 260.7           |   |   |   | 82.8 |   |   |   | 583.3 |   |   |   | 221.6 |   |
| Commercial                        |                              |   |    |                           |       |   |                |                        |   |              |                       |   |            |   |   |              |       |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| mortgage-backed                        |                              |   | 795.5   |                           |       |   | 44.1                |                        |   |              | 534.6                      |   |            |   | 243.1  |              |       |   | 682.7           |   |   |   | 161.0 |   |   |   | 2,012.8 |   |   |   | 448.2 |   |
| Other asset-backed                |                              |   | 63.0    |                           |       |   | 1.4                 |                        |   |              | 116.0                      |   |            |   | 93.1   |              |       |   | 560.8           |   |   |   | 250.7 |   |   |   | 739.8 |   |   |   | 345.2 |   |
| Total                                  |                              | $      | 5,275.9 |                           |       | $      | 191.3               |                        |   | $                 | 1,058.2                    |   |            | $      | 460.1  |              |       | $      | 2,714.5         |   |   | $ | 616.7 |   |   | $ | 9,048.6 |   |   | $ | 1,268.1 |   |

----

|                                               |   | Amortized Cost |    |   | Unrealized Capital Loss |   |    | Number of Securities |   |
|----------------------------------------------------|--------|---------------------|---------|--------|-----------------------------------|--------|---------|--------------------------------|--------|
|                                               |   | < 20%       |    |   | > 20%                     |   |    | < 20%                  |   |   | > 20% |   |   | < 20% |   |   | > 20% |   |
| 2010                                               |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |
| Six months or less                  |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |
| below amortized cost                     |   | $                   | 2,472.8 |   |                              | $      | 300.9   |                           |   | $ | 128.9 |   |   | $ | 68.8 |   |   |   | 242 |   |   |   | 33 |   |
| More than six months and  |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| twelve months or less               |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| below amortized cost                     |   |                | 803.3   |   |                              |   | 13.3    |                           |   |   | 65.9 |   |   |   | 4.6 |   |   |   | 91 |   |   |   | 10 |   |
| More than twelve months        |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| below amortized cost                     |   |                | 419.0   |   |                              |   | 1,129.1 |                           |   |   | 20.2 |   |   |   | 475.4 |   |   |   | 79 |   |   |   | 211 |   |
| Total                                              |   | $                   | 3,695.1 |   |                              | $      | 1,443.3 |                           |   | $ | 215.0 |   |   | $ | 548.8 |   |   |   | 412 |   |   |   | 254 |   |
|                                               |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                                               |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Six months or less                  |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| below amortized cost                     |   | $                   | 6,184.5 |   |                              | $      | 396.8   |                           |   | $ | 265.1 |   |   | $ | 111.8 |   |   |   | 282 |   |   |   | 96 |   |
| More than six months and  |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| twelve months or less               |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| below amortized cost                     |   |                | 1,248.5 |   |                              |   | 982.3   |                           |   |   | 68.8 |   |   |   | 433.2 |   |   |   | 191 |   |   |   | 115 |   |
| More than twelve months        |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| below amortized cost                     |   |                | 619.0   |   |                              |   | 885.6   |                           |   |   | 27.8 |   |   |   | 361.4 |   |   |   | 113 |   |   |   | 158 |   |
| Total                                              |   | $                   | 8,052.0 |   |                              | $      | 2,264.7 |                           |   | $ | 361.7 |   |   | $ | 906.4 |   |   |   | 586 |   |   |   | 369 |   |

----

|                                     |   | Amortized Cost |    |   | Unrealized Capital Loss |   |    | Number of Securities |   |
|------------------------------------------|--------|---------------------|---------|--------|-----------------------------------|--------|---------|--------------------------------|--------|
|                                     |   | < 20%       |    |   | > 20%                     |   |    | < 20%                  |   |   | > 20% |   |   | < 20% |   |   | > 20% |   |
| 2010                                     |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |
| U.S. government agencies       |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |
| and authorities                     |   | $                   | 9.0     |   |                              | $      | -       |                           |   | $ | 0.1 |   |   | $ | - |   |   |   | 2 |   |   |   | - |   |
| U.S. corporate, state and |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| municipalities                           |   |                | 824.0   |   |                              |   | 40.6    |                           |   |   | 41.4 |   |   |   | 9.7 |   |   |   | 129 |   |   |   | 9 |   |
| Foreign                                  |   |                | 628.0   |   |                              |   | 52.5    |                           |   |   | 32.0 |   |   |   | 12.9 |   |   |   | 78 |   |   |   | 8 |   |
| Residential mortgage-backed         |   |                | 391.4   |   |                              |   | 335.6   |                           |   |   | 27.2 |   |   |   | 122.9 |   |   |   | 65 |   |   |   | 98 |   |
| Commercial mortgage-backed          |   |                | 848.5   |   |                              |   | 469.1   |                           |   |   | 84.6 |   |   |   | 163.8 |   |   |   | 52 |   |   |   | 32 |   |
| Other asset-backed                  |   |                | 994.2   |   |                              |   | 545.5   |                           |   |   | 29.7 |   |   |   | 239.5 |   |   |   | 86 |   |   |   | 107 |   |
| Total                                    |   | $                   | 3,695.1 |   |                              | $      | 1,443.3 |                           |   | $ | 215.0 |   |   | $ | 548.8 |   |   |   | 412 |   |   |   | 254 |   |
|                                     |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                                     |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasuries                     |   | $                   | 3,841.2 |   |                              | $      | -       |                           |   | $ | 80.0 |   |   | $ | - |   |   |   | 21 |   |   |   | - |   |
| U.S. government agencies       |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and authorities                     |   |                | 25.0    |   |                              |   | -       |                           |   |   | 1.6 |   |   |   | - |   |   |   | 4 |   |   |   | - |   |
| U.S. corporate, state and |   |                |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| municipalities                           |   |                | 1,139.0 |   |                              |   | 64.9    |                           |   |   | 67.8 |   |   |   | 16.5 |   |   |   | 220 |   |   |   | 32 |   |
| Foreign                                  |   |                | 712.7   |   |                              |   | 183.0   |                           |   |   | 33.1 |   |   |   | 54.1 |   |   |   | 93 |   |   |   | 30 |   |
| Residential mortgage-backed         |   |                | 336.0   |   |                              |   | 468.9   |                           |   |   | 35.9 |   |   |   | 185.7 |   |   |   | 83 |   |   |   | 119 |   |
| Commercial mortgage-backed          |   |                | 1,534.5 |   |                              |   | 926.5   |                           |   |   | 104.2 |   |   |   | 344.0 |   |   |   | 96 |   |   |   | 60 |   |
| Other asset-backed                  |   |                | 463.6   |   |                              |   | 621.4   |                           |   |   | 39.1 |   |   |   | 306.1 |   |   |   | 69 |   |   |   | 128 |   |
| Total                                    |   | $                   | 8,052.0 |   |                              | $      | 2,264.7 |                           |   | $ | 361.7 |   |   | $ | 906.4 |   |   |   | 586 |   |   |   | 369 |   |

----

| §   | Recovery      value is estimated by performing a discounted cash flow analysis based      upon the best estimate of expected future cash flows, discounted at the      effective interest rate implicit in the underlying debt      security.  The effective interest rate is the current yield      prior to impairment for a fixed rate security or current coupon yield for      a floating rate security. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Collectability      and recoverability are estimated using the same considerations as the      Company uses in its overall impairment analysis which includes, but is not      limited to, the length of time and the extent to which the fair value has      been less than amortized cost, the issuer’s financial condition and      near-term prospects, future economic conditions and market forecasts,      interest rate changes, and changes in ratings of the    security. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Additional      factors considered for structured securities such as RMBS, CMBS and other      ABS include, but are not limited to, quality of underlying collateral,      anticipated loss severities, collateral default rates, and other      collateral characteristics such as vintage, collateral re-payment terms,      and the geographical makeup of thecollateral. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                       |   | Three Months Ended June 30,                                                                     |
|------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|
|                                                       |   | 2010                                                                                                                |   |   | 2009 |
|                                                       |   |                                                                                                                |   | No. of |   |   |   |   | No. of |
|                                                       |   | Impairment                                                                                                          |   | Securities |   |   | Impairment |   | Securities |
| U.S. Treasuries                                       | $      |                  -   |   |                   -  |   | $ |              80.5  |   |                 10  |
| U.S. corporate                                        |   |                2.4                  |   |                 12  |   |   |                9.1  |   |                 11  |
| Foreign(1)                                                 |   |              10.9                             |   |                 13  |   |   |                6.2  |   |                   7  |
| Residential mortgage-backed                           |   |                6.0                  |   |                 51  |   |   |                9.0  |   |                 29  |
| Other asset-backed                                    |   |              11.7                             |   |                 19  |   |   |              13.9  |   |                 12  |
| Commercial mortgage-backed                            |   |                6.2                  |   |                   2  |   |   |                  -   |   |                   -  |
| Equity securities                                     |   |                  -   | * |                   1  |   |   |                1.2  |   |                   1  |
| Public utilities                                      |   |                0.1                  |   |                   2  |   |   |                  -   |   |                   -  |
| Mortgage loans on real estate          |   |                0.3                  |   |                   1  |   |   |                0.5  |   |                   1  |
| Limited partnerships                                  |   |                  -   |   |                   -  |   |   |                0.4  |   |                   1  |
| Total                                                      | $      |              37.6                             |   |               101  |   | $ |            120.8  |   |                 72  |
| (1) Primarily U.S. dollar denominated. |
| * Less than $0.1.                           |
|                                                       |
|                                                       |   | Six Months Ended June 30,                                                                       |
|                                                       |   | 2010                                                                                                                |   |   | 2009 |
|                                                       |   |                                                                                                                |   | No. of |   |   |   |   | No. of |
|                                                       |   | Impairment                                                                                                          |   | Securities |   |   | Impairment |   | Securities |
| U.S. Treasuries                                       | $      |                  -   |   |                   -  |   | $ |            114.7  |   |                 13  |
| U.S. corporate                                        |   |                3.7                  |   |                 17  |   |   |              50.4  |   |                 49  |
| Foreign(1)                                                 |   |              22.8                             |   |                 19  |   |   |              24.2  |   |                 31  |
| Residential mortgage-backed                           |   |              12.5                             |   |                 54  |   |   |            100.9  |   |                 85  |
| Other asset-backed                                    |   |              15.1                             |   |                 24  |   |   |            126.7  |   |                 39  |
| Commercial mortgage-backed                            |   |                8.3                  |   |                   2  |   |   |                  -   |   |                   -  |
| Equity securities                                     |   |                  -   | * |                   1  |   |   |                3.3  |   |                   5  |
| Public utilities                                      |   |                0.3                  |   |                   5  |   |   |                  -   |   |                   -  |
| Mortgage loans on real estate          |   |                0.5                  |   |                   1  |   |   |                0.5  |   |                   1  |
| Limited partnerships                                  |   |                  -   |   |                   -  |   |   |                0.4  |   |                   1  |
| Total                                                      | $      |              63.2                             |   |               123  |   | $ |            421.1  |   |               224  |
| (1) Primarily U.S. dollar denominated. |   |                                                                                                                |   |   |   |   |   |   |   |
| * Less than $0.1.                           |   |                                                                                                                |   |   |   |   |   |   |   |

----

|                                                       |   |  Three Months Ended June 30,                                                          |
|------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|
|                                                       |   | 2010                                                                                                                |   |   | 2009 |
|                                                       |   |                                                                                                                |   | No. of |   |   |   |   | No. of |
|                                                       |   | Impairment                                                                                                          |   | Securities |   |   | Impairment |   | Securities |
| U.S. Treasuries                                       | $      |                  -   |   |                   -  |   | $ |              80.5  |   |                 10  |
| U.S. corporate                                        |   |                2.4                  |   |                 12  |   |   |                7.0  |   |                 10  |
| Foreign(1)                                                 |   |              10.8                             |   |                 13  |   |   |                3.6  |   |                   6  |
| Other asset-backed                                    |   |                0.3                  |   |                   1  |   |   |                  -   |   |                   -  |
| Public utilities                                      |   |                0.1                  |   |                   2  |   |   |                  -   |   |                   -  |
| Total                                                      | $      |              13.6                             |   |                 28  |   | $ |              91.1  |   |                 26  |
| (1) Primarily U.S. dollar denominated. |   |                                                                                                                |   |   |   |   |   |   |   |
|                                                       |   |                                                                                                                |   |   |   |   |   |   |   |
|                                                       |   |  Six Months Ended June 30,                                                            |
|                                                       |   | 2010                                                                                                                |   |   | 2009 |
|                                                       |   |                                                                                                                |   | No. of |   |   |   |   | No. of |
|                                                       |   | Impairment                                                                                                          |   | Securities |   |   | Impairment |   | Securities |
| U.S. Treasuries                                       | $      |                  -   |   |                   -  |   | $ |            114.7  |   |                 13  |
| U.S. corporate                                        |   |                3.7                  |   |                 17  |   |   |              42.7  |   |                 34  |
| Foreign(1)                                                 |   |              12.5                             |   |                 16  |   |   |              21.6  |   |                 30  |
| Residential mortgage-backed                           |   |                  -   |   |                   -  |   |   |              23.1  |   |                   8  |
| Other asset-backed                                    |   |                0.3                  |   |                   1  |   |   |            109.1  |   |                 11  |
| Public utilities                                      |   |                0.3                  |   |                   5  |   |   |                  -   |   |                   -  |
| Total                                                      | $      |              16.8                             |   |                 39  |   | $ |            311.2  |   |                 96  |
| (1) Primarily U.S. dollar denominated. |   |                                                                                                                |   |   |   |   |   |   |   |

----

|                                                             |   |                                                                                                                                  |                                                                                                                                  |                                                                                                                                  |                                                                                                                                  | Three Months Ended June 30, |
|------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|
|                                                             |   |                                                                                                                                  |                                                                                                                                  |                                                                                                                                  |                                                                                                                                  | 2010                                            |   | 2009 |
|                                                             |   |                                                                                                                                  |                                                                                                                                  |                                                                                                                                  |                                                                                                                                  |                                            |   |   | No. of |   |   |   |   | No. of |
|                                                             |   |                                                                                                                                  |                                                                                                                                  |                                                                                                                                  |                                                                                                                                  |                                            | Impairment |   | Securities |   |   | Impairment |   | Securities |
| U.S. corporate                                              | $      |                     -   |                                                                                                                                  |                      -  |                                                                                                                                  | $                                               |                  2.1  |   |                     3  |
| Foreign(1)                                                       |   |                                                                                                                                  |                     -   |                                                                                                                                  |                      -  |                                            |   |                  0.4  |   |                     6  |
| Commercial mortgage-backed                                  |   |                  1.9                        |                                                                                                                                  |                     1        |                                                                                                                                  |                                            |                     -   |   |                      -  |
| Residential mortgage-backed                                 |   |                  5.4                        |                                                                                                                                  |                   16                   |                                                                                                                                  |                                            |                75.0  |   |                   33  |
| Other asset-backed                                          |   |                  3.2                        |                                                                                                                                  |                     3        |                                                                                                                                  |                                            |                  7.4  |   |                   14  |
| Total                                                            |   |                                                                                                                                  |                                                                                                                                  | $                                                                                                                                     |                10.5                                   |                                            |                   20  |   | $ |                84.9  |   |                   56  |
| (1) Primarily U.S. dollar denominated.  |   |                                                                                                                                  |                                                                                                                                  |                                                                                                                                  |                                                                                                                                  |                                            |   |   |   |   |   |   |   |   |
|                                                             |   |                                                                                                                                  |                                                                                                                                  |                                                                                                                                  |                                                                                                                                  |                                            |   |   |   |   |   |   |   |   |
|                                                             |   |                                                                                                                                  |                                                                                                                                  |                                                                                                                                  |                                                                                                                                  | Six Months Ended June 30,   |
|                                                             |   |                                                                                                                                  |                                                                                                                                  |                                                                                                                                  |                                                                                                                                  | 2010                                            |   | 2009 |
|                                                             |   |                                                                                                                                  |                                                                                                                                  |                                                                                                                                  |                                                                                                                                  |                                            |   |   | No. of |   |   |   |   | No. of |
|                                                             |   |                                                                                                                                  |                                                                                                                                  |                                                                                                                                  |                                                                                                                                  |                                            | Impairment |   | Securities |   |   | Impairment |   | Securities |
| U.S. corporate                                              | $      |                     -   |                                                                                                                                  |                      -  |                                                                                                                                  | $                                               |                  2.1  |   |                     3  |
| Foreign(1)                                                       |   |                                                                                                                                  |                     -   |                                                                                                                                  |                      -  |                                            |   |                  0.4  |   |                     6  |
| Commercial mortgage-backed                                  |   |                10.5                                   |                                                                                                                                  |                     2        |                                                                                                                                  |                                            |                     -   |   |                      -  |
| Residential mortgage-backed                                 |   |                16.9                                   |                                                                                                                                  |                   25                   |                                                                                                                                  |                                            |                75.0  |   |                   33  |
| Other asset-backed                                          |   |                29.1                                   |                                                                                                                                  |                     9        |                                                                                                                                  |                                            |                  7.4  |   |                   14  |
| Total                                                            |   |                                                                                                                                  |                                                                                                                                  | $                                                                                                                                     |                56.5                                   |                                            |                   36  |   | $ |                84.9  |   |                   56  |

----

|                                                                                                     |   | Three Months Ended June 30, |   |
|----------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|
|                                                                                                     |   | 2010                                            |   |   | 2009 |   |
| Fixed maturities, available-for-sale, including net OTTI                        |   |                                            |   |   |   |   |
| of $(37.3) and $(118.7) in 2010 and 2009, respectively           |   | $                                               | (7.3   | ) |   | $ | (25.6 | ) |
| Equity securities, available-for-sale, including net OTTI                  |   |                                            |   |   |   |   |   |   |
| of $0* and $(1.2) in 2010 and 2009, respectively                 |   |                                            | 2.2    |   |   |   | 2.2 |   |
| Derivatives                                                                                              |   |                                            | 626.2  |   |   |   | (878.5 | ) |
| Other investments, including net OTTI of $(0.3) and $(0.9)  |   |                                            |   |   |   |   |   |   |
| in 2010 and 2009, respectively                                                       |   |                                            | 1.0    |   |   |   | (0.8 | ) |
| Net realized capital losses                                                               |   | $                                               | 622.1  |   |   | $ | (902.7 | ) |
| After-tax net realized capital losses, including tax valuation   |   |                                            |   |   |   |   |   |   |
| allowance of $9.5 in 2009                                                            |   | $                                               | 404.4  |   |   | $ | (596.3 | ) |
| *Less than $0.1.                                                                               |   |                                            |   |
|                                                                                                     |   |                                            |   |
|                                                                                                     |   | Six Months Ended June 30,   |   |
|                                                                                                     |   |                                            | 2010   |   |   |   | 2009 |   |
| Fixed maturities, available-for-sale, including net OTTI                        |   |                                            |   |   |   |   |   |   |
| of $(62.7) and $(416.9) in 2010 and 2009, respectively           |   | $                                               | 15.8   |   |   | $ | (258.0 | ) |
| Equity securities, available-for-sale, including net OTTI                  |   |                                            |   |   |   |   |   |   |
| of $0* and $(3.3) in 2010 and 2009, respectively                 |   |                                            | 2.3    |   |   |   | 0.2 |   |
| Derivatives                                                                                              |   |                                            | 338.8  |   |   |   | (793.6 | ) |
| Other investments, including net OTTI of $(0.5) and $(0.9)  |   |                                            |   |   |   |   |   |   |
| in 2010 and 2009, respectively                                                       |   |                                            | 2.7    |   |   |   | (3.1 | ) |
| Net realized capital losses                                                               |   | $                                               | 359.6  |   |   | $ | (1,054.5 | ) |
| After-tax net realized capital losses, including tax valuation   |   |                                            |   |   |   |   |   |   |
| allowance of $40.4 in 2009                                                           |   | $                                               | 233.7  |   |   | $ | (725.8 | ) |
| *Less than $0.1.                                                                               |   |                                            |   |   |   |   |   |   |

----

----

|                                                                                                                                                                                                                                 |   | 2010         |     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|----------|
|                                                                                                                                                                                                                                 |   | Level 1 |     |   | Level 2 |   |   | Level 3(1) |   |   | Total |   |
| Assets:                                                                                                                                                                                                                              |   |         |     |   |   |   |   |   |   |   |   |   |
| Fixed maturities, available-for-sale,                                                                                                                                                                                 |   |         |     |   |   |   |   |   |   |   |   |   |
| including securities pledged:                                                                                                                                                                                              |   |         |     |   |   |   |   |   |   |   |   |   |
| U.S. Treasuries                                                                                                                                                                                                                 |   | $            | 3,078.3  |   |   | $ | 97.4 |   |   | $ | - |   |   | $ | 3,175.7 |   |
| U.S. government agencies and authorities                                                                                                                                                                         |   |         | -        |   |   |   | 43.5 |   |   |   | - |   |   |   | 43.5 |   |
| U.S. corporate, state and municipalities                                                                                                                                                                         |   |         | -        |   |   |   | 7,006.8 |   |   |   | 67.0 |   |   |   | 7,073.8 |   |
| Foreign                                                                                                                                                                                                                              |   |         | -        |   |   |   | 4,035.1 |   |   |   | 55.3 |   |   |   | 4,090.4 |   |
| Residential mortgage-backed securities                                                                                                                                                                                     |   |         | -        |   |   |   | 1,924.8 |   |   |   | 148.3 |   |   |   | 2,073.1 |   |
| Commercial mortgage-backed securities                                                                                                                                                                                      |   |         | -        |   |   |   | 2,458.7 |   |   |   | - |   |   |   | 2,458.7 |   |
| Other asset-backed securities                                                                                                                                                                                              |   |         | -        |   |   |   | 1,259.8 |   |   |   | 679.4 |   |   |   | 1,939.2 |   |
| Equity securities, available-for-sale                                                                                                                                                                                      |   |         | 115.9    |   |   |   | - |   |   |   | 13.0 |   |   |   | 128.9 |   |
| Derivatives:                                                                                                                                                                                                                         |   |         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate contracts                                                                                                                                                                                                    |   |         | 6.3      |   |   |   | 193.0 |   |   |   | - |   |   |   | 199.3 |   |
| Foreign exchange contracts                                                                                                                                                                                                 |   |         | -        |   |   |   | 12.5 |   |   |   | - |   |   |   | 12.5 |   |
| Equity contracts                                                                                                                                                                                                                |   |         | 41.3     |   |   |   | - |   |   |   | 129.5 |   |   |   | 170.8 |   |
| Credit contracts                                                                                                                                                                                                                |   |         | -        |   |   |   | 0.5 |   |   |   | - |   |   |   | 0.5 |   |
| Cash and cash equivalents, short-term                                                                                                                                                                       |   |         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| investments, and short-term investments                                                                                                                                                                          |   |         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| under securities loan agreement                                                                                                                                                                                       |   |         | 2,399.7  |   |   |   | - |   |   |   | - |   |   |   | 2,399.7 |   |
| Assets held in separate accounts                                                                                                                                                                                 |   |         | 39,856.4 |   |   |   | - |   |   |   | - |   |   |   | 39,856.4 |   |
| Total                                                                                                                                                                                                                                |   | $            | 45,497.9 |   |   | $ | 17,032.1 |   |   | $ | 1,092.5 |   |   | $ | 63,622.5 |   |
|                                                                                                                                                                                                                                 |   |         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                                                                                                                                                                                                         |   |         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment contract guarantees:                                                                                                                                                                                            |   |         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed Indexed Annuities ("FIA")                                                                                                                                                                                       |   | $            | -        |   |   | $ | - |   |   | $ | 977.3 |   |   | $ | 977.3 |   |
| Guaranteed Minimum Withdrawal and                                                                                                                                                                                |   |         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulation Benefits ("GMWB"                                                                                                                                                                                         |   |         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and "GMAB")                                                                                                                                                                                                                     |   |         | -        |   |   |   | - |   |   |   | 97.1 |   |   |   | 97.1 |   |
| Embedded derivative on reinsurance                                                                                                                                                                                    |   |         | -        |   |   |   | 108.5 |   |   |   | - |   |   |   | 108.5 |   |
| Derivatives:                                                                                                                                                                                                                         |   |         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate contracts                                                                                                                                                                                                    |   |         | -        |   |   |   | 341.7 |   |   |   | - |   |   |   | 341.7 |   |
| Foreign exchange contracts                                                                                                                                                                                                 |   |         | -        |   |   |   | 31.1 |   |   |   | - |   |   |   | 31.1 |   |
| Equity contracts                                                                                                                                                                                                                |   |         | 5.1      |   |   |   | - |   |   |   | 16.2 |   |   |   | 21.3 |   |
| Credit contracts                                                                                                                                                                                                                |   |         | -        |   |   |   | 8.6 |   |   |   | 46.6 |   |   |   | 55.2 |   |
| Total                                                                                                                                                                                                                                |   | $            | 5.1      |   |   | $ | 489.9 |   |   | $ | 1,137.2 |   |   | $ | 1,632.2 |   |
| (1) Level 3 assets and liabilities accounted for 1.7% and 69.7% of total assets and liabilities measured at fair value on a |   |
| recurring basis, respectively. Excluding separate accounts assets for which the policyholder bears the risk, the Level 3                             |   |
| assets in relation to total assets       measured at fair value on a recurring basis totaled 4.6%.                                                        |   |

----

|                                                                                                                                                                                                                       |   | 2009         |     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|----------|
|                                                                                                                                                                                                                       |   | Level 1 |     |   | Level 2 |   |   | Level 3(1) |   |   | Total |   |
| Assets:                                                                                                                                                                                                                    |   |         |     |   |   |   |   |   |   |   |   |   |
| Fixed maturities, available-for-sale,                                                                                                                                                                       |   |         |     |   |   |   |   |   |   |   |   |   |
| including securities pledged:                                                                                                                                                                                    |   |         |     |   |   |   |   |   |   |   |   |   |
| U.S. Treasuries                                                                                                                                                                                                       |   | $            | 4,123.5  |   |   | $ | - |   |   | $ | - |   |   | $ | 4,123.5 |   |
| U.S. government agencies and authorities                                                                                                                                                               |   |         | -        |   |   |   | 24.6 |   |   |   | - |   |   |   | 24.6 |   |
| U.S. corporate, state and municipalities                                                                                                                                                               |   |         | -        |   |   |   | 5,559.2 |   |   |   | - |   |   |   | 5,559.2 |   |
| Foreign                                                                                                                                                                                                                    |   |         | -        |   |   |   | 3,318.9 |   |   |   | - |   |   |   | 3,318.9 |   |
| Residential mortgage-backed securities                                                                                                                                                                           |   |         | -        |   |   |   | 659.8 |   |   |   | 1,088.2 |   |   |   | 1,748.0 |   |
| Commercial mortgage-backed securities                                                                                                                                                                            |   |         | -        |   |   |   | 2,589.6 |   |   |   | - |   |   |   | 2,589.6 |   |
| Other asset-backed securities                                                                                                                                                                                    |   |         | -        |   |   |   | 461.3 |   |   |   | 423.9 |   |   |   | 885.2 |   |
| Equity securities, available-for-sale                                                                                                                                                                            |   |         | 149.8    |   |   |   | - |   |   |   | 4.5 |   |   |   | 154.3 |   |
| Derivatives:                                                                                                                                                                                                               |   |         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate contracts                                                                                                                                                                                          |   |         | -        |   |   |   | 44.6 |   |   |   | - |   |   |   | 44.6 |   |
| Foreign exchange contracts                                                                                                                                                                                       |   |         | -        |   |   |   | 14.2 |   |   |   | - |   |   |   | 14.2 |   |
| Equity contracts                                                                                                                                                                                                      |   |         | 42.8     |   |   |   | - |   |   |   | 215.5 |   |   |   | 258.3 |   |
| Credit contracts                                                                                                                                                                                                      |   |         | -        |   |   |   | 0.3 |   |   |   | - |   |   |   | 0.3 |   |
| Embedded derivative on reinsurance                                                                                                                                                                          |   |         | -        |   |   |   | 38.7 |   |   |   | - |   |   |   | 38.7 |   |
| Cash and cash equivalents, short-term                                                                                                                                                             |   |         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| investments, and short-term investments                                                                                                                                                                |   |         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| under securities loan agreement                                                                                                                                                                             |   |         | 2,242.8  |   |   |   | 8.0 |   |   |   | - |   |   |   | 2,250.8 |   |
| Assets held in separate accounts                                                                                                                                                                       |   |         | 42,996.1 |   |   |   | - |   |   |   | - |   |   |   | 42,996.1 |   |
| Total                                                                                                                                                                                                                      |   | $            | 49,555.0 |   |   | $ | 12,719.2 |   |   | $ | 1,732.1 |   |   | $ | 64,006.3 |   |
|                                                                                                                                                                                                                       |   |         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                                                                                                                                                                                               |   |         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment contract guarantees:                                                                                                                                                                                  |   |         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed Indexed Annuities ("FIA")                                                                                                                                                                             |   | $            | -        |   |   | $ | - |   |   | $ | 927.2 |   |   | $ | 927.2 |   |
| Guaranteed Minimum Withdrawal and                                                                                                                                                                      |   |         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulation Benefits ("GMWB"                                                                                                                                                                               |   |         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and "GMAB")                                                                                                                                                                                                           |   |         | -        |   |   |   | - |   |   |   | 73.9 |   |   |   | 73.9 |   |
| Derivatives:                                                                                                                                                                                                               |   |         |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate contracts                                                                                                                                                                                          |   |         | -        |   |   |   | 325.2 |   |   |   | - |   |   |   | 325.2 |   |
| Foreign exchange contracts                                                                                                                                                                                       |   |         | -        |   |   |   | 53.0 |   |   |   | - |   |   |   | 53.0 |   |
| Equity contracts                                                                                                                                                                                                      |   |         | 3.2      |   |   |   | - |   |   |   | 13.1 |   |   |   | 16.3 |   |
| Credit contracts                                                                                                                                                                                                      |   |         | -        |   |   |   | 15.4 |   |   |   | 90.5 |   |   |   | 105.9 |   |
| Total                                                                                                                                                                                                                      |   | $            | 3.2      |   |   | $ | 393.6 |   |   | $ | 1,104.7 |   |   | $ | 1,501.5 |   |
| (1) Level 3 assets and liabilities accounted for 1.0% of total assets and liabilities measured at fair value on a           |   |
| recurring basis. Excluding separate accounts assets for which the policyholder bears the risk, the Level 3                                      |   |
| net      assets and liabilities      in relation to total assets and liabilities      measured at fair value on a recurring basis totaled 3.2%. |   |

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| §   | A      reciprocal loan agreement with ING America Insurance Holdings, Inc. (“ING      AIH”), an affiliate, whereby either party can borrow from the other up to      3.0% of the Company’s statutory net admitted assets, excluding Separate      Accounts, as of the prior December 31.  At June 30, 2010      and December 31, 2009, the Company had an outstanding receivable of $442.0      and $545.5, respectively, with ING AIH under the reciprocal loan      agreement. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | A      $50.0 uncommitted, perpetual revolving note facility with the Bank of New      York.  At June 30, 2010 and December 31, 2009, the Company      had no amounts outstanding under the revolving note    facility. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| §   | Standard      - Guarantees that, upon death, the death benefit will be no less than the      premiums paid by the contractowner, adjusted for any contract      withdrawals. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Ratchet      - Guarantees that, upon death, the death benefit will be no less than the      greater of (1) Standard or (2) the maximum contract anniversary (or      quarterly) value of the variable annuity, adjusted for contract      withdrawals. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Combo      (Max 7) - Guarantees that, upon death, the death benefit will be no less      than the greater of (1) Ratchet or (2) Rollup (Rollup guarantees that,      upon death, the death benefit will be no less than the aggregate premiums      paid by the contractowner accruing interest at the contractual rate per      annum, adjusted for contract withdrawals, which may be subject to a      maximum cap on the rolled upamount.) |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| §   | Guaranteed      Minimum Income Benefit (“GMIB”) - Guarantees a minimum income payout,      exercisable each contract anniversary on or after a specified date, in      most cases the 10th rider  anniversary.   |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Guaranteed      Minimum Withdrawal Benefit (“GMWB”) - Guarantees an annual withdrawal      amount for life that is calculated as a percentage of the notional amount      that equals premium at the time of contract issue and may increase by      annual ratchets. The percentage used to determine the guaranteed      annual withdrawal amount may vary by age and contract year of first      withdrawal.  Earlier versions of the withdrawal benefit included      a rollup (7%, 6%, 5% or 0%, depending on versions of the benefit) in      combination with a ratchet (primarily annually or quarterly, depending on      versions). A joint life-time withdrawal benefit option was available to      include coverage for spouses.  Most versions of the withdrawal      benefit included reset and/or step-up features that may increase the      guaranteed withdrawal amount in certain conditions.  Earlier      versions of the withdrawal benefit guarantee that annual withdrawals of up      to 7.0% of eligible premiums may be made until eligible premiums      previously paid by the contractowner are returned, regardless of account      value performance.  Asset allocation requirements apply at all      times where withdrawals are guaranteed forlife. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Guaranteed      Minimum Accumulation Benefit (“GMAB”) - Guarantees that the account value      will be at least 100% of the eligible premiums paid by the contractowner      after 10 years, net of any contract withdrawals (GMAB 10).  In      the past, the Company offered an alternative design that guaranteed the      account value to be at least 200% of the eligible premiums paid by      contractowners after 20 years (GMAB  20).   |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Item      4. | Controls      and Procedures |
|--------|--------------|------------------------------|

|   | a) | The      Company carried out an evaluation, under the supervision and with the      participation of its management, including its Chief Executive Officer and      Chief Financial Officer, of the effectiveness of the design and operation      of the Company’s disclosure controls and procedures (as defined in Rule      13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934) as of the      end of the period covered by this report.  Based on that      evaluation, the Chief Executive Officer and the Chief Financial Officer      have concluded that the Company’s current disclosure controls and      procedures are effective in ensuring that material information relating to      the Company required to be disclosed in the Company’s periodic SEC filings      is made known to them in a timelymanner. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | There      has not been any change in the internal controls over financial reporting      of the Company that occurred during the period covered by this report that      has materially affected or is reasonably likely to materially affect these      internal controls. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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PART II.        OTHERINFORMATION

| Item 1. | Legal      Proceedings |
|---------|------------------------|

| Item 1A. | Risk      Factors |
|----------|-------------------|

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| August 6, 2010     (Date) | ING USA Annuity and Life Insurance Company                             (Registrant)     |
|----------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                               | By: /s/                                                                                                                                                                                                                                                                               | Ewout L. Steenbergen |
|                                               |                                                                                                                                                                                                                                                                                       | Ewout L. SteenbergenExecutive Vice President andChief Financial Officer(Duly Authorized Officer and Principal Financial Officer) |

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|           | ING USA ANNUITY AND LIFE INSURANCE COMPANY (the      “Company”)                                                                                                                                                                                                                                                                                                                                                                                                                              |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           | Exhibit Index                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Exhibit Number | Description of Exhibit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 2.1            | Agreement      and Plan of Merger dated June 25, 2003, by and between USG Annuity &      Life Company, United Life & Annuity Insurance Company, Equitable Life      Insurance Company of Iowa and Golden American Life Insurance Company,      incorporated by reference in Exhibit 99-8 in the Company’s Form 8K filed      with the SEC on January 2, 2004 (File No. 333-87270).                                                                                                         |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3.1            | Restated      Articles of Incorporation Providing for the Redomestication of Golden      American Life Insurance Company dated July 2 and 3, 2003, effective      January 1, 2004, incorporated by reference to Company’s 10-K, as filed      with the SEC on March 29, 2004 (File No. 033-87270).                                                                                                                                                                                                 |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3.2            | Amendment      to Articles of Incorporation Providing for the Name Change of Golden      American Life Insurance Company dated November 20, 2003, effective January      1, 2004, incorporated by reference to the Company’s 10-K, as filed with      the SEC on March 29, 2004 (File No. 033-87270).                                                                                                                                                                                              |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3.3            | Amendment      to Articles of Incorporation Providing for the Change in Purpose and      Powers of ING USA Annuity and Life Insurance Company dated March 3 and 4,      2004, effective March 11, 2004, incorporated by reference to the Company’s      10-Q, as filed with the SEC on May 17, 2004 (File No.      033-87270).                                                                                                                                                                     |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3.4            | Amended      and Restated By-Laws of ING USA Annuity and Life Insurance Company      effective January 1, 2005, incorporated by reference to the Company’s Form      10-Q, as filed with the SEC on May 13, 2005 (File No.      033-87270).                                                                                                                                                                                                                                                        |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.1            | Single      Premium Deferred Modified Guaranteed Annuity Contract, Single Premium      Deferred modified Guaranteed Annuity Master Contract, and Single Premium      Deferred Modified Guaranteed Annuity Certificate - Incorporated herein by      reference to Pre-Effective Amendment No. 1 to Registration Statement on      Form S-1 for Golden American Life Insurance Company as filed with the SEC      on February 8, 2002 (File No. 333-67660).                                                |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.2            | Single      Premium Deferred Modified Guaranteed Annuity Master Contract and Single      Premium Deferred Modified guaranteed Annuity Certificate – Incorporated by      reference to Post-Effective Amendment No. 1 to Registration Statement on      Form S-1 for Golden American Life Insurance Company, as filed with the SEC      on September 13, 2000 (File No. 333-40596).                                                                                                                 |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.3            | Individual      Retirement Annuity Rider; Roth Individual Retirement Annuity Rider; Simple      Retirement Account Rider; and 403(b) Rider - Incorporated herein by      reference to Post-Effective Amendment No. 34 to Registration Statement on      Form N-4 for Golden American Life Insurance Company Separate Account B, as      filed with the SEC on April 15, 2003 (File No.  033-23351).                                                                                                      |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.4            | 403(b)      Rider - Incorporated herein by reference to Initial Registration Statement      on Form S-2 for Golden American Life Insurance Company, as filed with the      SEC on April 15, 2003 (File No. 333-104547).                                                                                                                                                                                                                                                                                  |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.5            | Single      Premium Deferred Equity Indexed Modified Guaranteed Annuity Contract;      Single Premium Deferred Modified Guaranteed Annuity Group Master Contract;      and Single Premium Deferred Equity Indexed Modified Guaranteed Annuity      Certificate, - Incorporated herein by reference to Pre-Effective Amendment      No. 1 to Registration Statement on Form S-2 for ING USA Annuity and Life      Insurance Company, as filed with the SEC on August 13, 2004 (File No.      333-116137). |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

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| 4.6                    | Interest      in Fixed Account I under Variable Annuity Contracts - Incorporated herein      by reference to: Post-Effective Amendment No. 12 to Registration Statement      on Form N-4 for Golden American Life Insurance Company Separate Account B,      as filed with the SEC on April 23, 1999 (File Nos. 033-59261, 811-5626);      Incorporated by reference to Post-Effective Amendment No. 3 to      Registration Statement on Form N-4 for Golden American life Insurance      Company, as filed with the SEC on April 23, 1999 (File Nos. 333-28769,      811-5626); and Incorporated by reference to Pre-Effective Amendment No. 1      to Registration statement on Form N-4 for Golden American Life Insurance      Company Separate Account B, as filed with the SEC on June 24, 2000 (File      Nos. 333-33914, 811-5626).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.7                    | Interests      in Fixed Account II under Variable Annuity Contracts - Incorporated herein      by reference to Post-Effective Amendment No. 7 to Registration Statement      on Form N-4 for Separate Account B of Golden American Life Insurance      Company as filed with the SEC on October 2, 2000 (File No. 333-28679,      811-5626), Incorporated herein by reference to Post-Effective Amendment      No. 2 to Registration Statement on Form N-4 for Separate Account B of      Golden American Life Insurance Company as filed with the SEC on February      26, 2001 (File Nos. 333-30180, 811-5626), Incorporated herein by reference      to Post-Effective Amendment No. 5 to Registration Statement on Form N-4      for Separate Account B of Golden American Life Insurance Company as filed      with the SEC on April 23, 1999 (File Nos. 333-28755, 811-5626),      Incorporated herein by reference to Post-Effective Amendment No. 1 to      Registration Statement on Form N-4 for Separate Account B of Golden      American Life Insurance Company as filed with the SEC on April 23, 1999      (File Nos. 333-66757, 811-5626), Incorporated herein by reference to      Pre-Effective Amendment No. 1 to Registration Statement on Form N-4 for      Separate Account B of Golden American Life Insurance Company as filed with      the SEC on October 26, 2001 (File Nos. 333-63692, 811-5626), Incorporated      herein by reference to Pre-Effective Amendment No. 1 to Registration      Statement on Form N-4 for Separate Account B of Golden American Life      Insurance Company as filed with the SEC on December 11, 2001 (File Nos.      333-70600, 811-5626), Incorporated by reference to Post-Effective      Amendment No. 1 to Registration Statement on Form N-4 for Golden American      Life Insurance Company Separate Account B, as filed with the SEC on April      16, 2003 (File Nos. 333-90516, 811-5626) and Incorporated by reference to      Pre-Effective Amendment No. 1 to Registration Statement on Form N-4 for      Golden American Life Insurance Company Separate Account B, as filed with      the SEC on July 3, 2003 (File Nos. 333-101481,  811-5626). |
|                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.8                    | Interest      in the Guaranteed Account under Variable Annuity Contracts - Incorporated      herein by reference to Pre-Effective Amendment No. 1 to Registration      Statement on Form S-2 for Golden American Life Insurance Company, as filed      with the SEC on June 29, 2001 (File No. 333-57212).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 12+                    | Computation      of Ratio of Earnings to Fixed Charges, filed herewith.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 31.1+                  | Certificate      of Ewout L. Steenbergen pursuant to Section 302 of the Sarbanes-Oxley Act      of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 31.2+                  | Certificate      of Michael S. Smith pursuant to Section 302 of the Sarbanes-Oxley Act of      2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 32.1+                  | Certificate of Ewout L.      Steenbergenpursuant      to Section 906 of the Sarbanes-Oxley Act of2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 32.2+                  | Certificate      of Michael S. Smith pursuant to Section 906 of the Sarbanes-Oxley Act of      2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| +      Filed herewith. |