EXHIBIT 99.5
 First Life America Corporation  FINANCIAL STATEMENTS




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First Life America Corporation
Financial Statements
 ContentsFINANCIAL STATEMENTSBalance Sheets (Unaudited) as of
September 30, 2008 and December 31, 2007
    
    
    2-3Statements of Operations (Unaudited)
for the three and nine months ended September 30, 2008 and 2007
    
    
    4Statements of comprehensive income
(Unaudited) for the three and nine months ended September 30, 2008 and 2007
    
    
    5Statements of Cash Flows (Unaudited)
for the nine months ended September 30, 2008 and 2007
    
    
    6-7Notes to Unaudited Financial Statements
    
    
    8
  1




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FIRST LIFE AMERICA CORPORATION
 BALANCE SHEETS
 (Unaudited)September 30,
    
    
    December 31,2008
    
    
    2007AssetsInvestments:Securities available-for-sale, at fair value:Fixed maturities (amortized cost, $20,566,571
in 2008 and $19,225,225 in 2007)
    
    $
    17,298,612
    
    
    $
    18,675,211Equity securities (cost of $361,474 in 2008
and $239,250 in 2007)
    
    
    285,871
    
    
    
    191,316Investments in real estate
    
    
    274,564
    
    
    
    274,564Policy loans
    
    
    220,010
    
    
    
    178,731Mortgage loans on real estate
    
    
    1,370,884
    
    
    
    1,859,382Other investments
    
    
    4,137,780
    
    
    
    3,527,784Total investments
    
    
    23,587,721
    
    
    
    24,706,988Cash and cash equivalents
    
    
    763,353
    
    
    
    459,336Accrued investment income
    
    
    337,544
    
    
    
    321,899Accounts receivable
    
    
    325,873
    
    
    
    474,068Reinsurance receivables
    
    
    211,128
    
    
    
    35,049Deferred policy acquisition costs (net of accumulated
amortization of $5,817,459 in 2008 and $5,173,476 in 2007)
    
    
    5,410,414
    
    
    
    5,405,783Property and equipment (net of accumulated depreciation
of $194,644 in 2008 and $127,001 in 2007)
    
    
    2,670,240
    
    
    
    2,718,028Other assets
    
    
    6,396
    
    
    
    1,385Total assets
    
    $
    33,312,669
    
    
    $
    34,122,536
 See notes to financial statements.
  2




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FIRST LIFE AMERICA CORPORATION
 BALANCE SHEETS (Continued)
 (Unaudited)September 30,
    
    
    December 31,2008
    
    
    2007Liabilities and Shareholders EquityPolicy and contract liabilities:Future annuity benefits
    
    $
    19,957,078
    
    
    $
    18,735,110Future policy benefits
    
    
    7,813,449
    
    
    
    7,035,539Liability for policy claims
    
    
    148,448
    
    
    
    225,189Policyholder premium deposits
    
    
    54,310
    
    
    
    76,307Deposits on pending policy applications
    
    
    2,718
    
    
    
    1,571Reinsurance premiums payable
    
    
    35,332
    
    
    
    41,529Total policy and contract liabilities
    
    
    28,011,335
    
    
    
    26,115,245Commissions, salaries, wages and benefits payable
    
    
    73,977
    
    
    
    4,099Other liabilities
    
    
    158,662
    
    
    
    93,045Deferred federal income taxes payable
    
    
    25,210
    
    
    
    646,255Total liabilities
    
    
    28,269,184
    
    
    
    26,858,644Shareholders equity:Common stock
    
    
    1,500,000
    
    
    
    1,500,000Additional paid in capital
    
    
    3,474,564
    
    
    
    3,474,564Accumulated earnings
    
    
    2,743,786
    
    
    
    2,767,702Accumulated other comprehensive loss
    
    
    (2,674,850
    )
    
    
    (478,359
    )Less: Treasury stock held at cost (12 shares in 2008 and 2007)
    
    
    (15
    )
    
    
    (15
    )Total shareholders equity
    
    
    5,043,485
    
    
    
    7,263,892Total liabilities and shareholders equity
    
    $
    33,312,669
    
    
    $
    34,122,536
 See notes to financial statements.
  3




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FIRST LIFE AMERICA CORPORATION
 Statements of Operations
 (Unaudited)
    
    
    (Unaudited)Three months ended
    
    
    Nine months endedSeptember 30,
    
    
    September 30,
    
    
    September 30,
    
    
    September 30,2008
    
    
    2007
    
    
    2008
    
    
    2007Revenues:Gross premium income
    
    $
    1,039,107
    
    
    $
    1,001,146
    
    
    $
    3,259,617
    
    
    $
    3,188,504Reinsurance premiums assumed
    
    
    6,897
    
    
    
    6,980
    
    
    
    26,442
    
    
    
    16,038Reinsurance premiums ceded
    
    
    (101,044
    )
    
    
    (122,201
    )
    
    
    (340,918
    )
    
    
    (396,392
    )Net premium income
    
    
    944,960
    
    
    
    885,925
    
    
    
    2,945,141
    
    
    
    2,808,150Net investment income
    
    
    402,088
    
    
    
    369,601
    
    
    
    1,206,860
    
    
    
    1,036,671Net realized investment gain (loss)
    
    
    (27,266
    )
    
    
    864
    
    
    
    (26,398
    )
    
    
    818Rental income
    
    
    60,421
    
    
    
    59,886
    
    
    
    180,293
    
    
    
    184,084Total revenue
    
    
    1,380,203
    
    
    
    1,316,276
    
    
    
    4,305,896
    
    
    
    4,029,723Benefits and expenses:Increase in policy reserves
    
    
    233,489
    
    
    
    195,593
    
    
    
    777,909
    
    
    
    677,279Policyholder surrender values
    
    
    82,017
    
    
    
    121,107
    
    
    
    275,973
    
    
    
    266,853Interest credited on annuities and
premium deposits
    
    
    226,732
    
    
    
    212,053
    
    
    
    669,639
    
    
    
    577,906Death claims
    
    
    339,432
    
    
    
    259,767
    
    
    
    901,584
    
    
    
    677,049Commissions
    
    
    212,482
    
    
    
    201,617
    
    
    
    657,319
    
    
    
    700,052Policy acquisition costs deferred
    
    
    (210,659
    )
    
    
    (240,266
    )
    
    
    (648,614
    )
    
    
    (729,358
    )Amortization of deferred policy
acquisition costs
    
    
    303,328
    
    
    
    190,059
    
    
    
    643,983
    
    
    
    548,728Salaries, wages, and employee benefits
    
    
    168,095
    
    
    
    200,789
    
    
    
    580,266
    
    
    
    566,589Miscellaneous taxes
    
    
    35,727
    
    
    
    32,356
    
    
    
    99,352
    
    
    
    89,132Other operating costs and expenses
    
    
    135,847
    
    
    
    155,706
    
    
    
    416,070
    
    
    
    444,873Total benefits and expenses
    
    
    1,526,490
    
    
    
    1,328,781
    
    
    
    4,373,481
    
    
    
    3,819,103Income (Loss) before income tax expense
    
    
    (146,287
    )
    
    
    (12,505
    )
    
    
    (67,585
    )
    
    
    210,620Income tax expense (benefit)
    
    
    (23,841
    )
    
    
    (19
    )
    
    
    (43,669
    )
    
    
    19,323Net Income (Loss)
    
    $
    (122,446
    )
    
    $
    (12,486
    )
    
    $
    (23,916
    )
    
    $
    191,297Net Income (Loss) per common
share  basic and diluted
    
    $
    (0.08
    )
    
    $
    (0.01
    )
    
    $
    (0.02
    )
    
    $
    0.13
 See notes to financial statements.
  4




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FIRST LIFE AMERICA CORPORATION
 Statements of Comprehensive Income
 (Unaudited)
    
    
    (Unaudited)Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,
    
    
    September 30,
    
    
    September 30,2008
    
    
    2007
    
    
    2008
    
    
    2007Net income (loss)
    
    $
    (122,446
    )
    
    $
    (12,486
    )
    
    $
    (23,916
    )
    
    $
    191,297Unrealized gain (loss) on available-for-sale securities:Unrealized holding gain (loss) during the period
    
    
    (2,064,367
    )
    
    
    154,971
    
    
    
    (2,772,012
    )
    
    
    (276,752
    )Less: Reclassification for gains included in net income
    
    
    (27,266
    )
    
    
    864
    
    
    
    (26,398
    )
    
    
    818Tax benefit (expense)
    
    
    407,419
    
    
    
    (30,821
    )
    
    
    549,122
    
    
    
    55,515Other comprehensive income (loss)
    
    
    (1,629,682
    )
    
    
    123,286
    
    
    
    (2,196,492
    )
    
    
    (222,055
    )Comprehensive income (loss)
    
    $
    (1,752,128
    )
    
    $
    110,800
    
    
    $
    (2,220,408
    )
    
    $
    (30,758
    )
 See notes to financial statements.
  5




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FIRST LIFE AMERICA CORPORATION
 Statements of Cash Flows
 (Unaudited)September 30,
    
    
    September 30,2008
    
    
    2007Operating activities:Net income (loss)
    
    $
    (23,916
    )
    
    $
    191,297Adjustments to reconcile net loss to net cash
provided by operating activities:Interest credited on annuities and premium deposits
    
    
    669,639
    
    
    
    577,906Net realized investment (gain) loss
    
    
    26,398
    
    
    
    (818
    )Provision for depreciation
    
    
    67,643
    
    
    
    55,248Amortization
of premium and accretion of discount on fixed maturity and short-term investments
    
    
    (179,775
    )
    
    
    (157,481
    )Acquisition costs capitalized
    
    
    (648,614
    )
    
    
    (729,358
    )Amortization of deferred acquisition costs
    
    
    643,983
    
    
    
    548,728Provision for deferred federal income taxes
    
    
    (71,922
    )
    
    
    19,324(Increase) decrease in assets:Accrued investment income
    
    
    (15,645
    )
    
    
    (62,538
    )Accounts receivable
    
    
    148,195
    
    
    
    (123,629
    )Reinsurance receivables
    
    
    (176,079
    )
    
    
    (123,015
    )Policy loans
    
    
    (41,279
    )
    
    
    (4,428
    )Other assets
    
    
    (5,011
    )
    
    
    (2,129
    )Increase (decrease) in liabilities:Future policy benefits
    
    
    777,910
    
    
    
    677,278Liability for policy claims
    
    
    (76,741
    )
    
    
    (75,775
    )Deposits on pending policy applications
    
    
    1,147
    
    
    
    (22,857
    )Reinsurance premiums payable
    
    
    (6,197
    )
    
    
    (11,717
    )Amounts held under reinsurance
    
    
    
    
    
    
    (18,321
    )Commissions, salaries, wages and benefits payable
    
    
    69,878
    
    
    
    5,426Other liabilities
    
    
    65,617
    
    
    
    (125,490
    )Net cash provided by operating activities
    
    $
    1,225,231
    
    
    $
    617,651
 See notes to financial statements.
  6




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FIRST LIFE AMERICA CORPORATION
 Statements of Cash Flows (Continued)
 (Unaudited)September 30,
    
    
    September 30,2008
    
    
    2007Investing activities:Purchase of available-for-sale fixed maturities
    
    $
    (2,494,046
    )
    
    $
    (5,910,308
    )Maturity of available-for-sale fixed maturities
    
    
    1,094,601
    
    
    
    224,001Purchase of available-for-sale equities
    
    
    (122,224
    )
    
    
    Sale of available-for-sale equities
    
    
    
    
    
    
    2,623Additions to property and equipment
    
    
    (19,855
    )
    
    
    (37,365
    )Purchase of other investments
    
    
    (838,660
    )
    
    
    (592,400
    )Maturity of other investments
    
    
    440,141
    
    
    
    490,140Payments received on mortgage loans
    
    
    488,498
    
    
    
    58,091Net cash used in investing activities
    
    
    (1,451,545
    )
    
    
    (5,765,218
    )Financing activities:Deposits on annuity contracts
    
    
    1,930,554
    
    
    
    4,832,144Surrenders on annuity contracts
    
    
    (1,376,244
    )
    
    
    (962,227
    )Policyholder premium deposits
    
    
    
    
    
    
    12,154Withdrawals on policyholder premium deposits
    
    
    (23,979
    )
    
    
    (36,342
    )Net cash provided by financing activities
    
    
    530,331
    
    
    
    3,845,729Increase (decrease) in cash and cash equivalents
    
    
    304,017
    
    
    
    (1,301,838
    )Cash and cash equivalents, beginning of period
    
    
    459,336
    
    
    
    1,978,394Cash and cash equivalents, end of period
    
    $
    763,353
    
    
    $
    676,556Supplemental disclosure of cash activities:Interest paid
    
    $
    
    
    
    $
    Income taxes paid
    
    $
    
    
    
    $
    
 See notes to financial statements.
  7




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FIRST LIFE AMERICA CORPORATION  Notes to Financial Statements
 1)
Organization and Accounting Policies
 a) Nature of Operations
  b) Basis of Presentation
   c) Use of Estimates
  
    
    Useful lives of assets
    
    Changes in assumptions related to policy and contract liabilities and related deferred
acquisition costs
    
    Amount of future insurance claim losses, loss expense and earned premium percentages
    
    Future interest spreads, mortality margins, expense margins and premium persistency
experience
    
    Amortization
    
    Amount of current and deferred income tax expense and payable
   8




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FIRST LIFE AMERICA CORPORATION
 Notes to Financial Statements
 d) Cash Equivalents
  e) Investments
  f) Deferred Policy Acquisition Costs
  g) Property and Equipment
  Buildings and leasehold improvements
    
    39 yearsFurniture and equipment
    
    3 to 7 years
 h) Policy and Contract Liabilities
   9




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i) Future Policy Benefits
    j) Treasury Stock
  k) Premiums
  l) Federal Income Taxes
  m) Reinsurance
 Accounting and Reporting for Reinsurance of
Short-Duration and Long-Duration Contracts.
  10




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n) Net Earnings Per Common Share
  o) Comprehensive Income
  p) New Accounting Pronouncements
 Fair Value Measurements
 The Fair Value Option for Financial Assets and
Financial Liabilities  Including an Amendment of SFAS No. 115 Accounting for
Certain Investments in Debt and Equity Securities
  11




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2) Investments
  Gross
    
    
    GrossAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueSeptember 30, 2008:U.S. Government Agency
    
    $
    1,216,795
    
    
    $
    10,484
    
    
    $
    8,437
    
    
    $
    1,218,842Corporate bonds
    
    
    19,349,776
    
    
    
    18,680
    
    
    
    3,288,686
    
    
    
    16,079,770Total
    
    $
    20,566,571
    
    
    $
    29,164
    
    
    $
    3,297,123
    
    
    $
    17,298,612Equity securities
    
    $
    361,474
    
    
    $
    9,925
    
    
    $
    85,528
    
    
    $
    285,871December 31, 2007:U.S. Government Agency
    
    $
    2,131,743
    
    
    $
    21,379
    
    
    $
    247
    
    
    $
    2,152,875Corporate bonds
    
    
    17,093,482
    
    
    
    129,375
    
    
    
    700,521
    
    
    
    16,522,336Total
    
    $
    19,225,225
    
    
    $
    150,754
    
    
    $
    700,768
    
    
    $
    18,675,211Equity securities
    
    $
    239,250
    
    
    $
    7,050
    
    
    $
    54,984
    
    
    $
    191,316
         12




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Less than 12 months
    
    
    12 months or longer
    
    
    TotalFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    UnrealizedValue
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    LossesSeptember 30, 2008:U.S. Government Agency
    
    $
    511,154
    
    
    $
    8,437
    
    
    $
    
    
    
    $
    
    
    
    $
    511,154
    
    
    $
    8,437Corporate bonds
    
    
    8,662,604
    
    
    
    959,323
    
    
    
    6,009,562
    
    
    
    2,329,363
    
    
    
    14,672,166
    
    
    
    3,288,686Total
    
    $
    9,173,758
    
    
    $
    967,760
    
    
    $
    6,009,562
    
    
    $
    2,329,363
    
    
    $
    15,183,320
    
    
    $
    3,297,123Equity securities
    
    $
    44,622
    
    
    $
    44,978
    
    
    $
    59,450
    
    
    $
    40,550
    
    
    $
    104,072
    
    
    $
    85,528
 Less than 12 months
    
    
    12 months or longer
    
    
    TotalFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    UnrealizedValue
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    LossesDecember 31, 2007:U.S. Government Agency
    
    $
    
    
    
    $
    
    
    
    $
    199,750
    
    
    $
    247
    
    
    
    199,750
    
    
    $
    247Corporate bonds
    
    
    4,180,180
    
    
    
    180,587
    
    
    
    5,610,404
    
    
    
    519,935
    
    
    
    9,790,583
    
    
    
    700,521Total
    
    $
    4,180,180
    
    
    $
    180,587
    
    
    $
    5,810,154
    
    
    $
    520,182
    
    
    $
    9,990,333
    
    
    $
    700,768Equity securities
    
    $
    51,916
    
    
    $
    37,684
    
    
    $
    82,700
    
    
    $
    17,300
    
    
    $
    134,616
    
    
    $
    54,984
 3) Concentrations of Credit Risk
   13




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4) Property and Equipment
   September 30,
    
    
    December 31,2008
    
    
    2007Land and improvements
    
    $
    167,428
    
    
    $
    167,428Building and capitalized interest
    
    
    2,632,572
    
    
    
    2,632,572Furniture, fixtures and equipment
    
    
    33,607
    
    
    
    38,739Computers
    
    
    13,470
    
    
    
    Tenant improvements
    
    
    17,807
    
    
    
    6,290Total property and equipment
    
    
    2,864,884
    
    
    
    2,845,029Less  accumulated depreciation and amortization
    
    
    (194,644
    )
    
    
    (127,001
    )Net property and equipment
    
    $
    2,670,240
    
    
    $
    2,718,028
  5) Leases
    Twelve-Month PeriodsEnding September 30,
    
    Amount2009
    
    
    53,2582010
    
    
    48,820Total
    
    $
    102,078
  14




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6) Federal Income Taxes
  Nine-Month PeriodsEnded September 30,2008
    
    
    2007Current
    
    $
    28,253
    
    
    $
    Deferred
    
    
    (71,922
    )
    
    
    19,323Federal income tax (benefit) expense
    
    $
    (43,669
    )
    
    $
    19,323
  Nine-Month PeriodsEnded September 30,2008
    
    
    2007Federal income tax expense (benefit) at statutory rate
    
    $
    (22,979
    )
    
    $
    71,611Small life insurance company deduction
    
    
    495
    
    
    
    (22,085
    )Other
    
    
    (21,185
    )
    
    
    (30,203
    )Federal income tax (benefit) expense
    
    $
    (43,669
    )
    
    $
    19,323
  15




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September 30,
    
    
    December 31,2008
    
    
    2007Deferred tax liability:Due premiums
    
    $
    10,771
    
    
    $
    10,393Deferred policy acquisition costs
    
    
    902,733
    
    
    
    903,230Accrual of discount
    
    
    19,164
    
    
    
    13,665Premium deposit
    
    
    10,862
    
    
    
    14,009Total deferred tax liability
    
    
    943,530
    
    
    
    941,297Deferred tax asset:Policy reserves
    
    
    53,495
    
    
    
    30,781Capital loss carryforward
    
    
    12,762
    
    
    
    7,483Reinsurance premiums
    
    
    1,021
    
    
    
    1,557Net operating loss carryforward
    
    
    182,329
    
    
    
    135,631Net unrealized investment loss
    
    
    668,713
    
    
    
    119,590Total deferred tax asset
    
    
    918,320
    
    
    
    295,042Net deferred tax liability
    
    $
    25,210
    
    
    $
    646,255
  7) Statutory Accounting Practices
     16




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8) Reinsurance
      17




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9) Other Regulatory Matters
   10) Fair Values of Financial Instruments
  Fixed Maturities
  Equity Securities
  Policy Loans
  Mortgage Loans on Real Estate
  Other Investments
   18




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Cash and Cash Equivalents
   19