# EDGAR Filing Document

**Accession Number:** 0000936600
**File Stem:** 0000936600-26-000005
**Filing Date:** 2026-4
**Character Count:** 66077
**Document Hash:** 336aeccffc3c502c280a7cdcaadc20bd
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000936600-26-000005.hdr.sgml**: 20260430

**ACCESSION NUMBER**: 0000936600-26-000005

**CONFORMED SUBMISSION TYPE**: N-VPFS

**PUBLIC DOCUMENT COUNT**: 1

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260430

**DATE AS OF CHANGE**: 20260430

**EFFECTIVENESS DATE**: 20260430

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ALAC Separate Account 1
- **CENTRAL INDEX KEY:** 0000936600

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** IA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-VPFS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-08964
- **FILM NUMBER:** 26924835

**BUSINESS ADDRESS:**
- **STREET 1:** ATHENE ANNUITY AND LIFE COMPANY
- **STREET 2:** 7700 MILLS CIVIC PARKWAY
- **CITY:** WEST DES MOINES
- **STATE:** IA
- **ZIP:** 50266-3862
- **BUSINESS PHONE:** 800-800-9882

**MAIL ADDRESS:**
- **STREET 1:** ATHENE ANNUITY AND LIFE COMPANY
- **STREET 2:** 7700 MILLS CIVIC PARKWAY
- **CITY:** WEST DES MOINES
- **STATE:** IA
- **ZIP:** 50266-3862

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ILICO Separate Account I
- **DATE OF NAME CHANGE:** 20070620

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** IL ANNUITY & INSURANCE CO SEPARATE ACCOUNT 1
- **DATE OF NAME CHANGE:** 19950202

## Series and Classes Contracts Data

### ALAC Separate Account 1 (Series ID: S000011634)

| Class ID   | Class Name                 | Ticker Symbol   |
|:---|:---|:---|
| C000071754 | Visionary Variable Annuity |  |

**ALAC Separate Account 1**

**Financial Statements**

**As of and for the year ended December 31, 2025**

------

**ALAC Separate Account 1**

**Index to the Financial Statements**

**<u>As of and for the year ended December 31, 2025</u>**

---

| | |
|:---|:---|
| | **Page** |
| Report of Independent Registered Public Accounting Firm | [1](#i0c7e7dfac077457f9a21b4952cd65acf_7) |
| Financial Statements | |
| Statements of Net Assets | [3](#i0c7e7dfac077457f9a21b4952cd65acf_10) |
| Statements of Operations | [7](#i0c7e7dfac077457f9a21b4952cd65acf_22) |
| Statements of Changes in Net Assets | [11](#i0c7e7dfac077457f9a21b4952cd65acf_34) |
| Notes to Financial Statements | [15](#i0c7e7dfac077457f9a21b4952cd65acf_46) |

---

------

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Policyowners of ALAC Separate Account 1 and the

Board of Directors of Athene Annuity and Life Company

**Opinion on the Financial Statements and Financial Highlights**

We have audited the accompanying statements of net assets of each of the subaccounts listed in the table below which comprises ALAC Separate Account 1 (the "Account") as of December 31, 2025, the related statements of operations for the year then ended, statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the four years in the period then ended, and the related notes (collectively referred to as the "financial statements and financial highlights"). In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the subaccounts constituting the Account as of December 31, 2025, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

---

| | | |
|:---|:---|:---|
| The Alger Funds Mid Cap Growth Portfolio | Fidelity Variable Insurance Products Investment Grade Bond Portfolio | Royce Capital Fund Micro-Cap Portfolio |
| The Alger Funds Small Cap Growth Portfolio | Fidelity Variable Insurance Products Government Money Market Portfolio | First Eagle Investment Management Overseas Variable Fund |
| Fidelity Variable Insurance Products Asset Manager 50% Portfolio | T. Rowe Price Equity Series, Inc. International Stock Portfolio | Neuberger Berman Advisors Management Trust Mid Cap Growth Portfolio |
| Fidelity Variable Insurance Products Contrafund Portfolio | T. Rowe Price Equity Series, Inc. Limited-Term Bond Portfolio | Neuberger Berman Advisors Management Trust Quality Equity Portfolio |
| Fidelity Variable Insurance Products Equity-Income Portfolio | VanEck VIP Trust Global Resources Fund Portfolio | PIMCO Variable Insurance Trust High Yield Portfolio |
| Fidelity Variable Insurance Products Growth Portfolio | Pioneer Investments Victory Pioneer Fund VCT Portfolio | PIMCO Variable Insurance Trust Real Return Portfolio |
| Fidelity Variable Insurance Products Index 500 Portfolio | Pioneer Investments Victory Pioneer Select Mid Cap Growth VCT Portfolio |  |

---

The financial highlights for the year ended December 31, 2021, were audited by other independent registered public accountants whose report, dated April 28, 2022, expressed an unqualified opinion on those financial highlights.

**Basis for Opinion**

These financial statements and financial highlights are the responsibility of the Account's management. Our responsibility is to express an opinion on the subaccounts' financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The subaccounts are not required to have, nor were we engaged to perform, an audit of their internal control over financial

------

reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the subaccounts' internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2025, by correspondence with the underlying mutual fund companies. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Des Moines, Iowa

April 30, 2026

We have served as the Account's auditor since 2022.

------

**ALAC Separate Account 1**

**Statements of Net Assets**

**<u>December 31, 2025</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **The Alger Funds** | **The Alger Funds** | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** |
| | **Mid Cap** | **Small Cap** | **Asset** | | **Equity-** |
| | **Growth** | **Growth** | **Manager** | **Contrafund** | **Income** |
| | **Portfolio** | **Portfolio** | **50% Portfolio** | **Portfolio** | **Portfolio** |
| **Assets** | | | | | |
| Investments in shares of mutual funds, at fair value | $1496432 | $516374 | $423535 | $4354727 | $1877338 |
| **Total Assets** | $1496432 | $516374 | $423535 | $4354727 | $1877338 |
| Net assets in the accumulation period | $1496432 | $516374 | $423535 | $4354727 | $1877338 |
| **Net assets** | $1496432 | $516374 | $423535 | $4354727 | $1877338 |
| Accumulation unit value | $95.509 | $40.814 | $46.232 | $182.176 | $79.636 |
| Accumulation units outstanding | 15668 | 12652 | 9161 | 23904 | 23574 |
| Shares of mutual funds owned | 62822 | 27703 | 24037 | 72712 | 63790 |
| Investments, at cost | $1300017 | $661930 | $368673 | $2859082 | $1489409 |

---

*(Continued)*

The accompanying notes are an integral part of these financial statements.

------

**ALAC Separate Account 1**

**Statements of Net Assets**

**<u>December 31, 2025</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | | **T. Rowe Price** | **T. Rowe Price** |
| | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** | **Equity Series, Inc.** | **Equity Series, Inc.** |
| | | | | **Government** | | |
| | | **Index** | **Investment** | **Money** | **International** | **Limited-Term** |
| | **Growth** | **500** | **Grade Bond** | **Market** | **Stock** | **Bond** |
| | **Portfolio** | **Portfolio** | **Portfolio** | **Portfolio** | **Portfolio** | **Portfolio** |
| **Assets** |  |  |  |  |  |  |
| Investments in shares of mutual funds, at fair value | $3427638 | $5557038 | $393038 | $649630 | $1027938 | $195474 |
| **Total Assets** | $3427638 | $5557038 | $393038 | $649630 | $1027938 | $195474 |
| Net assets in the accumulation period | $3427638 | $5557038 | $393038 | $649630 | $1027938 | $195474 |
| **Net assets** | $3427638 | $5557038 | $393038 | $649630 | $1027938 | $195474 |
| Accumulation unit value | $136.244 | $127.919 | $24.634 | $13.651 | $31.068 | $17.601 |
| Accumulation units outstanding | 25158 | 43442 | 15955 | 47587 | 33087 | 11106 |
| Shares of mutual funds owned | 35076 | 8418 | 34598 | 649630 | 64650 | 41152 |
| Investments, at cost | $2636285 | $1620990 | $433326 | $649629 | $981396 | $201596 |

---

*(Continued)*

The accompanying notes are an integral part of these financial statements.

------

**ALAC Separate Account 1**

**Statements of Net Assets**

**<u>December 31, 2025</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **VanEck**<br>**VIP**<br>**Trust** | **Pioneer Investments** | **Pioneer Investments** | **Royce**<br>**Capital**<br>**Fund** | **First Eagle**<br>**Investment**<br>**Management** |
| | | | **Victory** | | |
| | **Global** | **Victory** | **Pioneer** | | |
| | **Resources** | **Pioneer** | **Select Mid** | | **Overseas** |
| | **Fund** | **Fund VCT** | **Cap Growth** | **Micro-Cap** | **Variable** |
| | **Portfolio** | **Portfolio** | **VCT Portfolio** | **Portfolio** | **Fund** |
| **Assets** | | | | | |
| Investments in shares of mutual funds, at fair value | $122935 | $1118165 | $1682285 | $399997 | $958280 |
| **Total Assets** | $122935 | $1118165 | $1682285 | $399997 | $958280 |
| Net assets in the accumulation period | $122935 | $1118165 | $1682285 | $399997 | $958280 |
| **Net assets** | $122935 | $1118165 | $1682285 | $399997 | $958280 |
| Accumulation unit value | $40.680 | $128.717 | $61.127 | $93.131 | $116.664 |
| Accumulation units outstanding | 3022 | 8687 | 27521 | 4295 | 8214 |
| Shares of mutual funds owned | 3669 | 56904 | 57357 | 42061 | 34322 |
| Investments, at cost | $87523 | $931657 | $1399391 | $388465 | $836285 |

---

*(Continued)*

The accompanying notes are an integral part of these financial statements.

------

**ALAC Separate Account 1**

**Statements of Net Assets**

**<u>December 31, 2025</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Neuberger Berman** | **Neuberger Berman** | **PIMCO Variable** | **PIMCO Variable** |
| | **Advisors Management Trust** | **Advisors Management Trust** | **Insurance Trust** | **Insurance Trust** |
| | **Mid Cap** | **Quality** | **High** | **Real** |
| | **Growth** | **Equity** | **Yield** | **Return** |
| | **Portfolio** | **Portfolio** | **Portfolio** | **Portfolio** |
| **Assets** | | | | |
| Investments in shares of mutual funds, at fair value | $282333 | $379036 | $58568 | $130749 |
| **Total Assets** | $282333 | $379036 | $58568 | $130749 |
| Net assets in the accumulation period | $282333 | $379036 | $58568 | $130749 |
| **Net assets** | $282333 | $379036 | $58568 | $130749 |
| Accumulation unit value | $29.554 | $68.480 | $29.836 | $24.698 |
| Accumulation units outstanding | 9553 | 5535 | 1963 | 5294 |
| Shares of mutual funds owned | 9739 | 8864 | 7904 | 10887 |
| Investments, at cost | $248864 | $192830 | $58862 | $140212 |

---

*(Concluded)*

The accompanying notes are an integral part of these financial statements.

------

**ALAC Separate Account 1**

**Statements of Operations**

**<u>Year Ended December 31, 2025</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **The Alger Funds** | **The Alger Funds** | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** |
| | **Mid Cap** | **Small Cap** | **Asset** | | **Equity-** |
| | **Growth** | **Growth** | **Manager** | **Contrafund** | **Income** |
| | **Portfolio** | **Portfolio** | **50% Portfolio** | **Portfolio** | **Portfolio** |
| Income |  |  |  |  |  |
| Dividends | $— | $— | $10204 | $5698 | $32005 |
| Expenses |  |  |  |  |  |
| Mortality and expense and administration charges | 19974 | 7095 | 5902 | 59750 | 25537 |
| Net investment income (loss) | (19974) | (7095) | 4302 | (54052) | 6468 |
| Realized gain (loss) on investments |  |  |  |  |  |
| Net realized gain (loss) on sale of fund shares | 10247 | (30959) | 5823 | 363404 | 48389 |
| Capital gains distributions |  | 6000 | 19337 | 666903 | 99676 |
| Net realized gain (loss) on investments | 10247 | (24959) | 25160 | 1030307 | 148065 |
| Net change in unrealized appreciation (depreciation) |  |  |  |  |  |
| on investments | 216586 | 49500 | 24410 | (202339) | 138839 |
| Net increase in net assets |  |  |  |  |  |
| resulting from operations | $206859 | $17446 | $53872 | $773916 | $293372 |

---

*(Continued)*

The accompanying notes are an integral part of these financial statements.

------

**ALAC Separate Account 1**

**Statements of Operations**

**<u>Year Ended December 31, 2025</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | | **T. Rowe Price** | **T. Rowe Price** |
| | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** | **Equity Series, Inc.** | **Equity Series, Inc.** |
| | | | | **Government** | | |
| | | **Index** | **Investment** | **Money** | **International** | **Limited-Term** |
| | **Growth** | **500** | **Grade Bond** | **Market** | **Stock** | **Bond** |
| | **Portfolio** | **Portfolio** | **Portfolio** | **Portfolio** | **Portfolio** | **Portfolio** |
| Income |  |  |  |  |  |  |
| Dividends | $9466 | $60536 | $14212 | $22187 | $19214 | $8367 |
| Expenses |  |  |  |  |  |  |
| Mortality and expense and administration charges | 46442 | 74427 | 5754 | 7645 | 14083 | 2716 |
| Net investment income (loss) | (36976) | (13891) | 8458 | 14542 | 5131 | 5651 |
| Realized gain (loss) on investments |  |  |  |  |  |  |
| Net realized gain (loss) on sale of fund shares | 112842 | 472810 | (5884) |  | 7828 | (602) |
| Capital gains distributions | 421940 | 27899 |  |  | 84391 |  |
| Net realized gain (loss) on investments | 534782 | 500709 | (5884) |  | 92219 | (602) |
| Net change in unrealized appreciation (depreciation) |  |  |  |  |  |  |
| on investments | (77650) | 319238 | 20721 |  | 56481 | 3066 |
| Net increase in net assets |  |  |  |  |  |  |
| resulting from operations | $420156 | $806056 | $23295 | $14542 | $153831 | $8115 |

---

*(Continued)*

The accompanying notes are an integral part of these financial statements.

------

**ALAC Separate Account 1**

**Statements of Operations**

**<u>Year Ended December 31, 2025</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **VanEck**<br>**VIP**<br>**Trust** | **Pioneer Investments** | **Pioneer Investments** | **Royce**<br>**Capital**<br>**Fund** | **First Eagle**<br>**Investment**<br>**Management** |
| | | | **Victory** | | |
| | **Global** | **Victory** | **Pioneer** | | |
| | **Resources** | **Pioneer** | **Select Mid** | | **Overseas** |
| | **Fund** | **Fund VCT** | **Cap Growth** | **Micro-Cap** | **Variable** |
| | **Portfolio** | **Portfolio** | **VCT Portfolio** | **Portfolio** | **Fund** |
| Income |  |  |  |  |  |
| Dividends | $2679 | $4824 | $— | $— | $15278 |
| Expenses |  |  |  |  |  |
| Mortality and expense and administration charges | 1462 | 15352 | 23356 | 5446 | 12280 |
| Net investment income (loss) | 1217 | (10528) | (23356) | (5446) | 2998 |
| Realized gain (loss) on investments |  |  |  |  |  |
| Net realized gain (loss) on sale of fund shares | 1161 | 27167 | 49214 | 7602 | 16338 |
| Capital gains distributions |  | 146777 | 175363 | 59520 | 109966 |
| Net realized gain (loss) on investments | 1161 | 173944 | 224577 | 67122 | 126304 |
| Net change in unrealized appreciation (depreciation) |  |  |  |  |  |
| on investments | 29638 | 51969 | 80291 | (15358) | 136949 |
| Net increase in net assets |  |  |  |  |  |
| resulting from operations | $32016 | $215385 | $281512 | $46318 | $266251 |

---

*(Continued)*

The accompanying notes are an integral part of these financial statements.

------

**ALAC Separate Account 1**

**Statements of Operations**

**<u>Year Ended December 31, 2025</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Neuberger Berman** | **Neuberger Berman** | **PIMCO Variable** | **PIMCO Variable** |
| | **Advisors Management Trust** | **Advisors Management Trust** | **Insurance Trust** | **Insurance Trust** |
| | **Mid Cap** | **Quality** | **High** | **Real** |
| | **Growth** | **Equity** | **Yield** | **Return** |
| | **Portfolio** | **Portfolio** | **Portfolio** | **Portfolio** |
| Income |  |  |  |  |
| Dividends | $— | $— | $3683 | $4624 |
| Expenses |  |  |  |  |
| Mortality and expense and administration charges | 4173 | 4956 | 818 | 1939 |
| Net investment income (loss) | (4173) | (4956) | 2865 | 2685 |
| Realized gain (loss) on investments |  |  |  |  |
| Net realized gain (loss) on sale of fund shares | 10596 | 10066 | (152) | (1872) |
| Capital gains distributions | 36771 | 21807 |  |  |
| Net realized gain (loss) on investments | 47367 | 31873 | (152) | (1872) |
| Net change in unrealized appreciation (depreciation) |  |  |  |  |
| on investments | (29489) | 14541 | 1520 | 7877 |
| Net increase in net assets |  |  |  |  |
| resulting from operations | $13705 | $41458 | $4233 | $8690 |

---

*(Concluded)*

The accompanying notes are an integral part of these financial statements.

------

**ALAC Separate Account 1**

**Statements of Changes in Net Assets**

**<u>Years Ended December 31, 2025 and 2024</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **The Alger Funds** | **The Alger Funds** | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** |
| | **Mid Cap** | **Small Cap** | **Asset** | | **Equity-** |
| | **Growth** | **Growth** | **Manager** | **Contrafund** | **Income** |
| | **Portfolio** | **Portfolio** | **50% Portfolio** | **Portfolio** | **Portfolio** |
| **Net assets at December 31, 2023** | $1357559 | $621980 | $413172 | $3876551 | $1919871 |
| Changes from 2024 operations |  |  |  |  |  |
| Net investment income (loss) | (19889) | (6321) | 4205 | (51944) | 5159 |
| Net realized gain (loss) on investments | (20768) | (45739) | 4727 | 785270 | 185504 |
| Net change in unrealized appreciation |  |  |  |  |  |
| (depreciation) on investments | 291224 | 90772 | 18672 | 420473 | 62563 |
| Net increase (decrease) in net assets |  |  |  |  |  |
| resulting from operations | 250567 | 38712 | 27604 | 1153799 | 253226 |
| Contract transactions |  |  |  |  |  |
| Deposits | 510 | 1327 |  | 1717 | 1176 |
| Surrenders and death benefits | (207306) | (85122) | (26649) | (592004) | (327745) |
| Contract maintenance charges | (236) | (89) | (66) | (442) | (286) |
| Other transfers between sub-accounts, |  |  |  |  |  |
| including fixed interest account | (13158) | (13681) | (2097) | (32870) | (55303) |
| Net decrease in net assets |  |  |  |  |  |
| resulting from contract transactions | (220190) | (97565) | (28812) | (623599) | (382158) |
| Total increase (decrease) in net assets | 30377 | (58853) | (1208) | 530200 | (128932) |
| **Net assets at December 31, 2024** | $1387936 | $563127 | $411964 | $4406751 | $1790939 |
| Changes from 2025 operations |  |  |  |  |  |
| Net investment income (loss) | (19974) | (7095) | 4302 | (54052) | 6468 |
| Net realized gain (loss) on investments | 10247 | (24959) | 25160 | 1030307 | 148065 |
| Net change in unrealized appreciation (depreciation) |  |  |  |  |  |
| on investments | 216586 | 49500 | 24410 | (202339) | 138839 |
| Net increase in net assets |  |  |  |  |  |
| resulting from operations | 206859 | 17446 | 53872 | 773916 | 293372 |
| Contract transactions |  |  |  |  |  |
| Deposits | 690 | 932 |  | 1322 | 879 |
| Surrenders and death benefits | (125730) | (68178) | (41978) | (751493) | (157103) |
| Contract maintenance charges | (222) | (99) | (113) | (428) | (269) |
| Other transfers between sub-accounts, |  |  |  |  |  |
| including fixed interest account | 26899 | 3146 | (210) | (75341) | (50480) |
| Net increase (decrease) in net assets |  |  |  |  |  |
| resulting from contract transactions | (98363) | (64199) | (42301) | (825940) | (206973) |
| Total increase (decrease) in net assets | 108496 | (46753) | 11571 | (52024) | 86399 |
| **Net assets at December 31, 2025** | $1496432 | $516374 | $423535 | $4354727 | $1877338 |

---

*(Continued)*

The accompanying notes are an integral part of these financial statements.

------

**ALAC Separate Account 1**

**Statements of Changes in Net Assets**

**<u>Years Ended December 31, 2025 and 2024</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | | **T. Rowe Price** | **T. Rowe Price** |
| | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** | **Equity Series, Inc.** | **Equity Series, Inc.** |
| | | | | **Government** | | |
| | | **Index** | **Investment** | **Money** | **International** | **Limited-Term** |
| | **Growth** | **500** | **Grade Bond** | **Market** | **Stock** | **Bond** |
| | **Portfolio** | **Portfolio** | **Portfolio** | **Portfolio** | **Portfolio** | **Portfolio** |
| **Net assets at December 31, 2023** | $2974284 | $4787562 | $450732 | $665063 | $1037202 | $203000 |
| Changes from 2024 operations |  |  |  |  |  |  |
| Net investment income (loss) | (46938) | (7725) | 8628 | 22482 | (5388) | 5728 |
| Net realized gain (loss) on investments | 911182 | 405550 | (7425) |  | 34778 | (810) |
| Net change in unrealized appreciation |  |  |  |  |  |  |
| (depreciation) on investments | (45239) | 667777 | 746 |  | (5495) | 2199 |
| Net increase (decrease) in net assets |  |  |  |  |  |  |
| resulting from operations | 819005 | 1065602 | 1949 | 22482 | 23895 | 7117 |
| Contract transactions |  |  |  |  |  |  |
| Deposits | 2130 | 3666 | 765 | 585 |  |  |
| Surrenders and death benefits | (428592) | (429871) | (41071) | (280056) | (100339) | (9939) |
| Contract maintenance charges | (526) | (549) | (63) | (57) | (92) | (32) |
| Other transfers between sub-accounts, |  |  |  |  |  |  |
| including fixed interest account | (24255) | (63447) | (1321) | 128793 | (21738) | (1625) |
| Net decrease in net assets |  |  |  |  |  |  |
| resulting from contract transactions | (451243) | (490201) | (41690) | (150735) | (122169) | (11596) |
| Total increase (decrease) in net assets | 367762 | 575401 | (39741) | (128253) | (98274) | (4479) |
| **Net assets at December 31, 2024** | $3342046 | $5362963 | $410991 | $536810 | $938928 | $198521 |
| Changes from 2025 operations |  |  |  |  |  |  |
| Net investment income (loss) | (36976) | (13891) | 8458 | 14542 | 5131 | 5651 |
| Net realized gain (loss) on investments | 534782 | 500709 | (5884) |  | 92219 | (602) |
| Net change in unrealized appreciation (depreciation) |  |  |  |  |  |  |
| on investments | (77650) | 319238 | 20721 |  | 56481 | 3066 |
| Net increase in net assets |  |  |  |  |  |  |
| resulting from operations | 420156 | 806056 | 23295 | 14542 | 153831 | 8115 |
| Contract transactions |  |  |  |  |  |  |
| Deposits | 2130 | 3868 | 855 | 675 |  |  |
| Surrenders and death benefits | (307481) | (560825) | (46504) | (178506) | (73400) | (6809) |
| Contract maintenance charges | (470) | (572) | (53) | (74) | (87) | (31) |
| Other transfers between sub-accounts, |  |  |  |  |  |  |
| including fixed interest account | (28743) | (54452) | 4454 | 276183 | 8666 | (4322) |
| Net increase (decrease) in net assets |  |  |  |  |  |  |
| resulting from contract transactions | (334564) | (611981) | (41248) | 98278 | (64821) | (11162) |
| Total increase (decrease) in net assets | 85592 | 194075 | (17953) | 112820 | 89010 | (3047) |
| **Net assets at December 31, 2025** | $3427638 | $5557038 | $393038 | $649630 | $1027938 | $195474 |

---

*(Continued)*

The accompanying notes are an integral part of these financial statements.

------

**ALAC Separate Account 1**

**Statements of Changes in Net Assets**

**<u>Years Ended December 31, 2025 and 2024</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **VanEck VIP**<br>**Trust** | **Pioneer Investments** | **Pioneer Investments** | **Royce Capital**<br>**Fund** | **First Eagle**<br>**Inv Management** |
| | **Global** | **Victory** | **Victory Pioneer** | | |
| | **Resources** | **Pioneer** | **Select Mid** | | **Overseas** |
| | **Fund** | **Fund VCT** | **Cap Growth** | **Micro-Cap** | **Variable** |
| | **Portfolio** | **Portfolio** | **VCT Portfolio** | **Portfolio** | **Fund** |
| **Net assets at December 31, 2023** | $135418 | $1023965 | $1579885 | $463292 | $846132 |
| Changes from 2024 operations |  |  |  |  |  |
| Net investment income (loss) | 1557 | (7864) | (24000) | (6128) | 2599 |
| Net realized gain (loss) on investments | 3037 | 73956 | 8572 | 35725 | 3392 |
| Net change in unrealized appreciation |  |  |  |  |  |
| (depreciation) on investments | (9949) | 145524 | 355135 | 20256 | 31243 |
| Net increase (decrease) in net assets |  |  |  |  |  |
| resulting from operations | (5355) | 211616 | 339707 | 49853 | 37234 |
| Contract transactions |  |  |  |  |  |
| Deposits | 424 | 405 | 660 | 666 | 877 |
| Surrenders and death benefits | (36750) | (124409) | (138075) | (100133) | (82799) |
| Contract maintenance charges | (15) | (110) | (146) | (82) | (91) |
| Other transfers between sub-accounts, |  |  |  |  |  |
| including fixed interest account | (1006) | (2934) | (12600) | (4387) | (4186) |
| Net decrease in net assets |  |  |  |  |  |
| resulting from contract transactions | (37347) | (127048) | (150161) | (103936) | (86199) |
| Total increase (decrease) in net assets | (42702) | 84568 | 189546 | (54083) | (48965) |
| **Net assets at December 31, 2024** | $92716 | $1108533 | $1769431 | $409209 | $797167 |
| Changes from 2025 operations |  |  |  |  |  |
| Net investment income (loss) | 1217 | (10528) | (23356) | (5446) | 2998 |
| Net realized gain (loss) on investments | 1161 | 173944 | 224577 | 67122 | 126304 |
| Net change in unrealized appreciation (depreciation) |  |  |  |  |  |
| on investments | 29638 | 51969 | 80291 | (15358) | 136949 |
| Net increase in net assets |  |  |  |  |  |
| resulting from operations | 32016 | 215385 | 281512 | 46318 | 266251 |
| Contract transactions |  |  |  |  |  |
| Deposits | 286 | 495 | 660 | 429 | 542 |
| Surrenders and death benefits | (3990) | (200736) | (355416) | (53008) | (96074) |
| Contract maintenance charges | (15) | (107) | (127) | (73) | (91) |
| Other transfers between sub-accounts, |  |  |  |  |  |
| including fixed interest account | 1922 | (5405) | (13775) | (2878) | (9515) |
| Net increase (decrease) in net assets |  |  |  |  |  |
| resulting from contract transactions | (1797) | (205753) | (368658) | (55530) | (105138) |
| Total increase (decrease) in net assets | 30219 | 9632 | (87146) | (9212) | 161113 |
| **Net assets at December 31, 2025** | $122935 | $1118165 | $1682285 | $399997 | $958280 |

---

*(Continued)*

The accompanying notes are an integral part of these financial statements.

------

**ALAC Separate Account 1**

**Statements of Changes in Net Assets**

**<u>Years Ended December 31, 2025 and 2024</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Neuberger Berman** | **Neuberger Berman** | **PIMCO Variable** | **PIMCO Variable** |
| | **Advisors Management Trust** | **Advisors Management Trust** | **Insurance Trust** | **Insurance Trust** |
| | **Mid Cap** | **Quality** | **High** | **Real** |
| | **Growth** | **Equity** | **Yield** | **Return** |
| | **Portfolio** | **Portfolio** | **Portfolio** | **Portfolio** |
| **Net assets at December 31, 2023** | $314800 | $308641 | $98541 | $151290 |
| Changes from 2024 operations |  |  |  |  |
| Net investment income (loss) | (4394) | (4067) | 4114 | 1807 |
| Net realized gain (loss) on investments | 32341 | 45224 | (1428) | (1691) |
| Net change in unrealized appreciation |  |  |  |  |
| (depreciation) on investments | 36443 | 32209 | 2243 | 1068 |
| Net increase (decrease) in net assets |  |  |  |  |
| resulting from operations | 64390 | 73366 | 4929 | 1184 |
| Contract transactions |  |  |  |  |
| Deposits |  |  |  | 300 |
| Surrenders and death benefits | (67889) | (28687) | (40753) | (9379) |
| Contract maintenance charges | (91) | (21) | (7) | (20) |
| Other transfers between sub-accounts, |  |  |  |  |
| including fixed interest account | (10472) | (8511) | (1817) | (963) |
| Net decrease in net assets |  |  |  |  |
| resulting from contract transactions | (78452) | (37219) | (42577) | (10062) |
| Total increase (decrease) in net assets | (14062) | 36147 | (37648) | (8878) |
| **Net assets at December 31, 2024** | $300738 | $344788 | $60893 | $142412 |
| Changes from 2025 operations |  |  |  |  |
| Net investment income (loss) | (4173) | (4956) | 2865 | 2685 |
| Net realized gain (loss) on investments | 47367 | 31873 | (152) | (1872) |
| Net change in unrealized appreciation (depreciation) |  |  |  |  |
| on investments | (29489) | 14541 | 1520 | 7877 |
| Net increase in net assets |  |  |  |  |
| resulting from operations | 13705 | 41458 | 4233 | 8690 |
| Contract transactions |  |  |  |  |
| Deposits |  |  |  | 300 |
| Surrenders and death benefits | (32856) | (15373) | (3593) | (8004) |
| Contract maintenance charges | (86) | (21) | (8) | (21) |
| Other transfers between sub-accounts, |  |  |  |  |
| including fixed interest account | 832 | 8184 | (2957) | (12628) |
| Net increase (decrease) in net assets |  |  |  |  |
| resulting from contract transactions | (32110) | (7210) | (6558) | (20353) |
| Total increase (decrease) in net assets | (18405) | 34248 | (2325) | (11663) |
| **Net assets at December 31, 2025** | $282333 | $379036 | $58568 | $130749 |

---

*(Concluded)*

The accompanying notes are an integral part of these financial statements.

------

**ALAC Separate Account 1**

**Notes to Financial Statements**

**<u>December 31, 2025</u>**

**1.**&nbsp;&nbsp;&nbsp;&nbsp;**Organization**

ALAC Separate Account 1 (the Separate Account), is a segregated investment account of Athene Annuity and Life Company (the Company). The Separate Account is registered under the Investment Company Act of 1940, as amended, as a unit investment trust that follows investment company accounting guidance in accordance with accounting with accounting principles generally accepted in the United States of America. The Separate Account is a funding vehicle for individual variable annuity contracts issued by the Company, which are issued out of the Company's general account.

On October 11, 2024, Athene Annuity & Life Assurance Company (AADE) merged with and into Athene Annuity and Life Company (AAIA), with AAIA as the surviving entity following the receipt of all required regulatory approvals.

Under applicable insurance law, the assets and liabilities of the Separate Account are clearly identified and segregated from the Company's other assets and liabilities. The portion of the Separate Account's assets applicable to the variable annuity contracts cannot be used to fulfill any other obligations arising from any other business the Company may conduct.

The Separate Account includes two investment products: "Visionary" and "Visionary Choice" products. These products were last issued in 2001 and 2002, respectively. Neither of these products are actively being marketed by the Company. The significant features of these products are summarized below:

*Visionary* - This contract provides flexible premium payments, death benefits and tax deferred investment options to potentially maximize the value of the contract.

*Visionary Choice* - This contract provides flexible premium payments, death benefits, option of multiple annuitants, withdrawal charge options and tax deferred investment options to potentially maximize the value of the contract.

**Investments**

The deposits of the Separate Account are invested at the direction of the contract holders in the sub-accounts that comprise the Separate Account (the Subaccounts). The sub-accounts invest in the following underlying mutual fund portfolios (collectively, the Funds):

---

| | |
|:---|:---|
| **<u>Subaccount</u>** | **<u>Mutual Fund</u>** |
| The Alger Funds | The Alger Funds |
| Mid Cap Growth Portfolio | Mid Cap Growth Portfolio |
| Small Cap Growth Portfolio | Small Cap Growth Portfolio |
| Fidelity Variable Insurance Products | Fidelity Variable Insurance Products |
| Asset Manager 50% Portfolio | Asset Manager 50% Portfolio |
| Contrafund Portfolio | Contrafund Portfolio |
| Equity-Income Portfolio | Equity-Income Portfolio |
| Growth Portfolio | Growth Portfolio |
| Index 500 Portfolio | Index 500 Portfolio |
| Investment Grade Bond Portfolio | Investment Grade Bond Portfolio |
| Government Money Market Portfolio | Government Money Market Portfolio |
|  | *(Continued)* |

---

------

**ALAC Separate Account 1**

**Notes to Financial Statements**

**<u>December 31, 2025</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **<u>Subaccount</u>** | **<u>Subaccount</u>** | **<u>Subaccount</u>** | **<u>Mutual Fund</u>** | **<u>Mutual Fund</u>** | **<u>Mutual Fund</u>** |
| | T. Rowe Price Equity Series, Inc. | T. Rowe Price Equity Series, Inc. | | T. Rowe Price Equity Series, Inc. | T. Rowe Price Equity Series, Inc. |
| | | International Stock Portfolio | | | International Stock Portfolio |
| | | Limited-Term Bond Portfolio | | | Limited-Term Bond Portfolio |
| | VanEck VIP Trust | VanEck VIP Trust | | VanEck VIP Trust | VanEck VIP Trust |
| | | Global Resources Fund Portfolio | | | Global Resources Fund Portfolio |
| | Pioneer Investments | Pioneer Investments | | Pioneer Investments | Pioneer Investments |
| | | Victory Pioneer Fund VCT Portfolio | | | Victory Pioneer Fund VCT Portfolio |
| | | Victory Pioneer Select Mid Cap Growth VCT | | | Victory Pioneer Select Mid Cap Growth VCT |
| | | &nbsp;&nbsp;&nbsp;&nbsp;Portfolio | | | &nbsp;&nbsp;&nbsp;&nbsp;Portfolio |
| | Royce Capital Fund | Royce Capital Fund | | Royce Capital Fund | Royce Capital Fund |
| | | Micro-Cap Portfolio | | | Micro-Cap Portfolio |
| | First Eagle Investment Management | First Eagle Investment Management | | First Eagle Investment Management | First Eagle Investment Management |
| | | Overseas Variable Fund | | | Overseas Variable Fund |
| | Neuberger Berman Advisors Management | Neuberger Berman Advisors Management | | Neuberger Berman Advisors Management | Neuberger Berman Advisors Management |
| | &nbsp;&nbsp;&nbsp;&nbsp;Trust | &nbsp;&nbsp;&nbsp;&nbsp;Trust | | &nbsp;&nbsp;&nbsp;&nbsp;Trust | &nbsp;&nbsp;&nbsp;&nbsp;Trust |
| | | Mid Cap Growth Portfolio | | | Mid Cap Growth Portfolio |
| | | Quality Equity Portfolio | | | Quality Equity Portfolio |
| | PIMCO Variable Insurance Trust | PIMCO Variable Insurance Trust | | PIMCO Variable Insurance Trust | PIMCO Variable Insurance Trust |
| | | High Yield Portfolio | | | High Yield Portfolio |
| | | Real Return Portfolio | | | Real Return Portfolio |
| | | | | | *(Concluded)* |

---

**2.**&nbsp;&nbsp;&nbsp;&nbsp;**Summary of Significant Accounting Policies**

**Basis of Accounting**

Financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America for variable annuity separate accounts registered as unit investment trusts.

**Use of Estimates**

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results may differ from the estimates used in preparing the financial statements. The primary estimates included in the accompanying financial statements are the assumptions and judgments utilized in determining the fair value of investments.

**Investment Valuation**

Investments are stated at the closing net asset values (NAV) per share on the last trading day of the year. Investment transactions are accounted for on a trade-date basis, and the cost of investments sold is determined by the average cost method. In valuing securities, the Company uses a fair value hierarchy that prioritizes the inputs in the valuation techniques used to measure fair value into three broad levels.

------

**ALAC Separate Account 1**

**Notes to Financial Statements**

**<u>December 31, 2025</u>**

Level 1&nbsp;&nbsp;&nbsp;&nbsp;Values are unadjusted quoted prices for identical assets and liabilities in active markets accessible at the measurement date.

Level 2&nbsp;&nbsp;&nbsp;&nbsp;Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are observable or can be corroborated by market data for the term of the instrument. Such inputs include market interest rates and volatilities, spreads and yield curves.

Level 3 Certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Company's best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date.

All assets held by the Separate Account are classified in Level 2. There were no transfers between levels in 2025.

**Dividends**

Dividends paid to the Separate Account are automatically reinvested in shares of the same funds on the payable date.

**Accumulation Unit Value**

Accumulation unit value is calculated at close on trading days based on the contract owner's proportion of the fund NAV over the number of units outstanding for the respective fund.

**Federal Income Taxes**

The operations of the Separate Account are included in the federal income tax return of the Company, which is taxed as a life insurance company under Subchapter L of the Internal Revenue Code of 1986, as amended (the Code). The Separate Account is not separately taxable as a regulated investment company under Subchapter M of the Code and is not otherwise taxable as an entity separate from the Company. Based on this, no charge is being made currently to the Separate Account for federal income taxes. The Company will periodically review the status of this policy. In the event of changes in the tax law, a charge may be made in future years for any federal income taxes that would be attributable to the contracts.

**Segment Reporting**

Each Subaccount of the Separate Account constitutes a single operating segment and therefore, a single reportable segment. The chief operating decision maker (CODM) oversees the activities of the Separate Account using information of each Subaccount. The Separate Account is engaged in a single line of business as a registered unit investment trust. The Separate Account is a funding vehicle for individual variable annuity contracts with the assets owned by the Company to support the liabilities of the applicable insurance contracts. The President of the Company is the CODM.

The CODM uses increase (decrease) in net assets from operations as their performance measure in order to make operations decisions while monitoring the net assets of each of the funds within the Separate Account. The accounting policies used to measure profit and loss of the segments are the same as those described in the summary of significant accounting policies. The measure of segment assets is reported on the Statements of Net Assets as net assets. Refer to the Statements of Operations and Changes in Net Assets and related notes for each Subaccount's operating segment significant expenses. All assets and revenue are generated in the US and there is no customer greater than 10% of consolidated results for all periods presented.

------

**ALAC Separate Account 1**

**Notes to Financial Statements**

**<u>December 31, 2025</u>**

**3.**&nbsp;&nbsp;&nbsp;&nbsp;**Fund Charges**

**Other Charges**

Amounts are paid to the Company for mortality and expense guarantees at the rate of 1.25% of the current value of the Separate Account on an annual basis. The Separate Account also pays the Company for other expenses, such as contract maintenance fees ($7.50 per contract at the end of each quarter) and asset-based administration fees (0.15% on an annual basis). These charges are recognized as a reduction in accumulation unit values through a reduction in net investment income (loss).

Under these agreements, the Company is responsible for all sales, general, and administrative expenses applicable to the Separate Account.

There is a maturity benefit on the variable annuity contracts. If the account value is lower than the guaranteed minimum maturity benefit, the general account funds an increase to the separate account which is recorded as a negative charge in the general account.

**Withdrawal Charge**

A withdrawal charge is imposed in the event of full or partial withdrawal. The policyowner had two withdrawal charge options to choose from at the time the contract was purchased. The first option was the date of issue withdrawal charge option where the withdrawal charge is 7% in the first six complete contract years, decreasing to 6% in the seventh complete contract year, and then declining by 2% in each subsequent contract year, until it is zero in contract year ten. The second option was the date of premium payment withdrawal charge option where the withdrawal charge is calculated from the date of a premium payment. The date of premium payment withdrawal charge is 7% in the first premium payment year, decreasing by 1% in each subsequent premium payment year, until it is zero in premium payment year eight. During 2025, funds that included a date of issue withdrawal charge option are outside of the withdrawal charge period, while there are still some funds within the charge period that include the date of premium payment withdrawal charge option.

**Transfer Charge**

A transfer charge of $25 may be imposed for the thirteenth and each subsequent transfer from and among sub-accounts in any one contract year. These charges are included within contract maintenance charges in the Statements of Changes in Net Assets.

------

**ALAC Separate Account 1**

**Notes to Financial Statements**

**<u>December 31, 2025</u>**

**4.**&nbsp;&nbsp;&nbsp;&nbsp;**Purchases and Sales of Securities**

The cost of investments purchased and proceeds from investments sold were as follows for the year ended December 31, 2025:

---

| | | |
|:---|:---|:---|
| | **Cost of**<br>**Purchases** | **Proceeds**<br>**from Sales** |
| The Alger Funds Mid Cap Growth Portfolio | $24898 | $143235 |
| The Alger Funds Small Cap Growth Portfolio | 7632 | 72925 |
| Fidelity Variable Insurance Products Asset Manager 50% Portfolio | 29787 | 48448 |
| Fidelity Variable Insurance Products Contrafund Portfolio | 696615 | 909702 |
| Fidelity Variable Insurance Products Equity-Income Portfolio | 140920 | 241749 |
| Fidelity Variable Insurance Products Growth Portfolio | 440115 | 389715 |
| Fidelity Variable Insurance Products Index 500 Portfolio | 88957 | 686929 |
| Fidelity Variable Insurance Products |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment Grade Bond Portfolio | 26921 | 59711 |
| Fidelity Variable Insurance Products |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government Money Market Portfolio | 302258 | 189438 |
| T. Rowe Price Equity Series, Inc. International Stock Portfolio | 112645 | 87943 |
| T. Rowe Price Equity Series, Inc. Limited-Term Bond Portfolio | 9172 | 14683 |
| VanEck VIP Trust Global Resources Fund | 6853 | 7434 |
| Pioneer Investments Victory Pioneer Fund VCT Portfolio | 150315 | 219818 |
| Pioneer Investments Victory Pioneer Select Mid Cap Growth VCT Portfolio | 175407 | 392058 |
| Royce Capital Fund Micro-Cap Portfolio | 69868 | 71323 |
| First Eagle Investment Management Overseas Variable Fund | 133554 | 125726 |
| Neuberger Berman Advisors Management Trust |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mid Cap Growth Portfolio | 38769 | 38283 |
| Neuberger Berman Advisors Management Trust |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Quality Equity Portfolio | 29924 | 20284 |
| PIMCO Variable Insurance Trust High Yield Portfolio | 3780 | 7472 |
| PIMCO Variable Insurance Trust Real Return Portfolio | 4931 | 22599 |

---

------

**ALAC Separate Account 1**

**Notes to Financial Statements**

**<u>December 31, 2025</u>**

**5.**&nbsp;&nbsp;&nbsp;&nbsp;**Summary of Unit Transactions** 

Transactions in units for the years ended December 31, 2025 and 2024 were as follows:

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025**<br>**Units** | **2024**<br>**Units** |
| **The Alger Funds Mid Cap Growth Portfolio** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract purchases | 1335 | 983 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (2400) | (3789) |
| **The Alger Funds Small Cap Growth Portfolio** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract purchases | 1738 | 1614 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (3497) | (4175) |
| **Fidelity Variable Insurance Products Asset Manager 50% Portfolio** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract purchases | 975 | 1047 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (1918) | (1785) |
| **Fidelity Variable Insurance Products Contrafund Portfolio** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract purchases | 1033 | 927 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (6109) | (5580) |
| **Fidelity Variable Insurance Products Equity-Income Portfolio** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract purchases | 2585 | 2468 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (5407) | (8256) |
| **Fidelity Variable Insurance Products Growth Portfolio** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract purchases | 1245 | 1287 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (3881) | (5297) |
| **Fidelity Variable Insurance Products Index 500 Portfolio** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract purchases | 2771 | 2177 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (8024) | (7020) |
| **Fidelity Variable Insurance Products Investment Grade Bond** |  |  |
| **Portfolio** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract purchases | 10334 | 8510 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (12021) | (10288) |
| **Fidelity Variable Insurance Products Government Money** |  |  |
| **Market Portfolio** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract purchases | 24736 | 13642 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (17534) | (25113) |
| **T. Rowe Price Equity Series, Inc. International Stock Portfolio** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract purchases | 1997 | 812 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (4202) | (5213) |
| **T. Rowe Price Equity Series, Inc. Limited-Term Bond Portfolio** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract purchases | 1284 | 1527 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (1937) | (2214) |
| **VanEck VIP Global Resources Fund Portfolio** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract purchases | 619 | 352 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (665) | (1578) |
| **Pioneer Investments Victory Pioneer Fund VCT Portfolio** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract purchases | 417 | 432 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (2207) | (1660) |
|  |  | *(Continued)* |

---

------

**ALAC Separate Account 1**

**Notes to Financial Statements**

**<u>December 31, 2025</u>**

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025**<br>**Units** | **2024**<br>**Units** |
| **Pioneer Investments Victory Pioneer Select Mid Cap Growth** |  |  |
| **VCT Portfolio** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract purchases | 965 | 1159 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (7838) | (4295) |
| **Royce Capital Fund Micro-Cap Portfolio** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract purchases | 355 | 241 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (996) | (1568) |
| **First Eagle Investment Management Overseas Variable Fund** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract purchases | 107 | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (1156) | (1060) |
| **Neuberger Berman Advisors Management Trust Mid-Cap** |  |  |
| **Growth Portfolio** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract purchases | 1303 | 1280 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (2332) | (4244) |
| **Neuberger Berman Advisors Management Trust Quality** |  |  |
| **Equity Portfolio** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract purchases | 131 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (244) | (635) |
| **PIMCO Variable Insurance Trust High Yield Portfolio** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract purchases | 7 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (237) | (1555) |
| **PIMCO Variable Insurance Trust Real Return Portfolio** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract purchases | 269 | 255 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemptions | (1108) | (684) |
|  |  | *(Concluded)* |

---

Transfers to are included in contract purchases and transfers from are included in redemptions.

------

**ALAC Separate Account 1**

**Notes to Financial Statements**

**<u>December 31, 2025</u>**

**6.**&nbsp;&nbsp;&nbsp;&nbsp;**Financial Highlights**

A summary of units outstanding, unit values and net assets at December 31, 2025, 2024, 2023, 2022 and 2021, and the ratios of investment income, expenses to average net assets, and total return for the years then ended were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| |<br>**Units** |<br>**Unit**<br>**Value** |<br>**Net**<br>**Assets** | **Investment**<br>**Income**<br>**Ratio (1)** |<br>**Expense**<br>**Ratio (2)** |<br>**Total**<br>**Return (3)** |
| **The Alger Funds** | **The Alger Funds** | | | | | |
| **Mid Cap Growth Portfolio** | **Mid Cap Growth Portfolio** | | | | | |
| Accumulation units |  |  |  |  |  |  |
| **2025** | 15668 | $95.509 | $1496432 | —% | 1.40% | 15.15% |
| 2024 | 16733 | 82.946 | 1387936 |  | 1.40 | 19.38 |
| 2023 | 19539 | 69.479 | 1357559 |  | 1.40 | 21.48 |
| 2022 | 24461 | 57.196 | 1399068 |  | 1.40 | (36.96) |
| 2021 | 26150 | 90.724 | 2372426 |  | 1.40 | 2.76 |
| **The Alger Funds** | **The Alger Funds** |  |  |  |  |  |
| **Small Cap Growth Portfolio** | **Small Cap Growth Portfolio** |  |  |  |  |  |
| Accumulation units |  |  |  |  |  |  |
| **2025** | 12652 | 40.814 | 516374 |  | 1.40 | 4.45 |
| 2024 | 14411 | 39.076 | 563127 | 0.36 | 1.40 | 6.62 |
| 2023 | 16972 | 36.647 | 621980 |  | 1.40 | 14.89 |
| 2022 | 21803 | 31.900 | 695514 |  | 1.40 | (38.87) |
| 2021 | 22333 | 52.185 | 1165444 |  | 1.40 | (7.36) |
| **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** |  |  |  |  |
| **Asset Manager 50% Portfolio** | **Asset Manager 50% Portfolio** |  |  |  |  |  |
| Accumulation units |  |  |  |  |  |  |
| **2025** | 9161 | 46.232 | 423535 | 2.41 | 1.40 | 13.39 |
| 2024 | 10104 | 40.772 | 411964 | 2.42 | 1.40 | 6.98 |
| 2023 | 10842 | 38.108 | 413172 | 2.37 | 1.40 | 11.39 |
| 2022 | 11017 | 34.213 | 376926 | 2.06 | 1.40 | (16.11) |
| 2021 | 11400 | 40.783 | 464925 | 1.56 | 1.40 | 8.40 |
| **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** |  |  |  |  |
| **Contrafund Portfolio** | **Contrafund Portfolio** |  |  |  |  |  |
| Accumulation units |  |  |  |  |  |  |
| **2025** | 23904 | 182.176 | 4354727 | 0.13 | 1.40 | 19.80 |
| 2024 | 28980 | 152.062 | 4406751 | 0.19 | 1.40 | 31.93 |
| 2023 | 33633 | 115.260 | 3876551 | 0.46 | 1.40 | 31.61 |
| 2022 | 40218 | 87.576 | 3522114 | 0.49 | 1.40 | (27.33) |
| 2021 | 43130 | 120.513 | 5197720 | 0.07 | 1.40 | 26.07 |
|  |  |  |  |  |  | *(Continued)* |

---

------

**ALAC Separate Account 1**

**Notes to Financial Statements**

**<u>December 31, 2025</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| |<br>**Units** |<br>**Unit**<br>**Value** |<br>**Net**<br>**Assets** | **Investment**<br>**Income**<br>**Ratio (1)** |<br>**Expense**<br>**Ratio (2)** |<br>**Total**<br>**Return (3)** |
| **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** | | | | |
| **Equity-Income Portfolio** | **Equity-Income Portfolio** | **Equity-Income Portfolio** | | | | |
| Accumulation units |  |  |  |  |  |  |
| **2025** | 23574 | $79.636 | $1877338 | 1.74% | 1.40% | 17.38% |
| 2024 | 26396 | 67.849 | 1790939 | 1.67 | 1.40 | 13.74 |
| 2023 | 32184 | 59.653 | 1919871 | 1.82 | 1.40 | 9.12 |
| 2022 | 38055 | 54.666 | 2080308 | 1.75 | 1.40 | (6.27) |
| 2021 | 44529 | 58.323 | 2597044 | 1.89 | 1.40 | 23.17 |
| **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** |  |  |  |  |
| **Growth Portfolio** | **Growth Portfolio** |  |  |  |  |  |
| Accumulation units |  |  |  |  |  |  |
| 2025 | 25158 | 136.244 | 3427638 | 0.28 | 1.40 | 13.31 |
| 2024 | 27794 | 120.243 | 3342046 |  | 1.40 | 28.57 |
| 2023 | 31804 | 93.519 | 2974284 | 0.13 | 1.40 | 34.36 |
| 2022 | 34862 | 69.603 | 2426500 | 0.62 | 1.40 | (25.50) |
| 2021 | 39553 | 93.428 | 3695363 |  | 1.40 | 21.51 |
| **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** |  |  |  |  |
| **Index 500 Portfolio** | **Index 500 Portfolio** |  |  |  |  |  |
| Accumulation units |  |  |  |  |  |  |
| **2025** | 43442 | 127.919 | 5557038 | 1.13 | 1.40 | 16.15 |
| 2024 | 48695 | 110.134 | 5362963 | 1.25 | 1.40 | 23.16 |
| 2023 | 53538 | 89.424 | 4787562 | 1.44 | 1.40 | 24.45 |
| 2022 | 66591 | 71.853 | 4784730 | 1.43 | 1.40 | (19.34) |
| 2021 | 73033 | 89.082 | 6505922 | 1.23 | 1.40 | 26.80 |
| **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** |  |  |  |  |
| **Investment Grade Bond Portfolio** | **Investment Grade Bond Portfolio** | **Investment Grade Bond Portfolio** |  |  |  |  |
| Accumulation units |  |  |  |  |  |  |
| **2025** | 15955 | 24.634 | 393038 | 3.44 | 1.40 | 5.74 |
| 2024 | 17642 | 23.296 | 410991 | 3.38 | 1.40 | 0.37 |
| 2023 | 19420 | 23.210 | 450732 | 2.49 | 1.40 | 4.74 |
| 2022 | 22035 | 22.160 | 488289 | 2.17 | 1.40 | (14.16) |
| 2021 | 23936 | 25.816 | 617923 | 2.02 | 1.40 | (1.98) |
| **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** | **Fidelity Variable Insurance Products** |  |  |  |  |
| **Government Money Market Portfolio** | **Government Money Market Portfolio** | **Government Money Market Portfolio** |  |  |  |  |
| Accumulation units |  |  |  |  |  |  |
| **2025** | 47587 | 13.651 | 649630 | 4.04 | 1.40 | 2.69 |
| 2024 | 40385 | 13.292 | 536810 | 5.00 | 1.40 | 3.64 |
| 2023 | 51856 | 12.825 | 665063 | 4.81 | 1.40 | 3.45 |
| 2022 | 55841 | 12.398 | 692327 | 1.38 | 1.40 | 0.04 |
| 2021 | 62732 | 12.393 | 777468 | 0.01 | 1.40 | (1.37) |
|  |  |  |  |  |  | *(Continued)* |

---

------

**ALAC Separate Account 1**

**Notes to Financial Statements**

**<u>December 31, 2025</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| |<br>**Units** |<br>**Unit**<br>**Value** |<br>**Net**<br>**Assets** | **Investment**<br>**Income**<br>**Ratio (1)** |<br>**Expense**<br>**Ratio (2)** |<br>**Total**<br>**Return (3)** |
| **T. Rowe Price Equity Series, Inc.** | **T. Rowe Price Equity Series, Inc.** | **T. Rowe Price Equity Series, Inc.** | | | | |
| **International Stock Portfolio** | **International Stock Portfolio** | | | | | |
| Accumulation units |  |  |  |  |  |  |
| **2025** | 33087 | $31.068 | $1027938 | 1.90% | 1.40% | 16.78% |
| 2024 | 35292 | 26.605 | 938928 | 0.88 | 1.40 | 1.81 |
| 2023 | 39693 | 26.131 | 1037202 | 0.93 | 1.40 | 14.64 |
| 2022 | 49027 | 22.794 | 1117509 | 0.73 | 1.40 | (16.98) |
| 2021 | 53758 | 27.454 | 1475891 | 0.55 | 1.40 | (0.08) |
| **T. Rowe Price Equity Series, Inc.** | **T. Rowe Price Equity Series, Inc.** | **T. Rowe Price Equity Series, Inc.** |  |  |  |  |
| **Limited-Term Bond Portfolio** | **Limited-Term Bond Portfolio** |  |  |  |  |  |
| Accumulation units |  |  |  |  |  |  |
| **2025** | 11106 | 17.601 | 195474 | 4.30 | 1.40 | 4.25 |
| 2024 | 11759 | 16.882 | 198521 | 4.21 | 1.40 | 3.51 |
| 2023 | 12446 | 16.310 | 203000 | 3.31 | 1.40 | 3.49 |
| 2022 | 13529 | 15.761 | 213233 | 1.94 | 1.40 | (5.84) |
| 2021 | 14022 | 16.737 | 234689 | 1.34 | 1.40 | (1.25) |
| **VanEck VIP** | **VanEck VIP** |  |  |  |  |  |
| **Global Resources Fund Portfolio** | **Global Resources Fund Portfolio** | **Global Resources Fund Portfolio** |  |  |  |  |
| Accumulation units |  |  |  |  |  |  |
| **2025** | 3022 | 40.680 | 122935 | 2.55 | 1.40 | 34.60 |
| 2024 | 3068 | 30.220 | 92716 | 2.59 | 1.40 | (4.19) |
| 2023 | 4294 | 31.537 | 135418 | 2.79 | 1.40 | (4.91) |
| 2022 | 4661 | 33.172 | 154617 | 1.65 | 1.40 | 6.90 |
| 2021 | 4837 | 31.031 | 150095 | 0.43 | 1.40 | 17.28 |
| **Pioneer Investments** | **Pioneer Investments** |  |  |  |  |  |
| **Victory Pioneer Fund VCT Portfolio** | **Victory Pioneer Fund VCT Portfolio** | **Victory Pioneer Fund VCT Portfolio** |  |  |  |  |
| Accumulation units |  |  |  |  |  |  |
| **2025** | 8687 | 128.717 | 1118165 | 0.44 | 1.40 | 21.65 |
| 2024 | 10477 | 105.806 | 1108533 | 0.72 | 1.40 | 20.94 |
| 2023 | 11705 | 87.481 | 1023965 | 0.86 | 1.40 | 27.15 |
| 2022 | 13130 | 68.803 | 903389 | 0.64 | 1.40 | (20.61) |
| 2021 | 14822 | 86.662 | 1284503 | 0.32 | 1.40 | 26.21 |
| **Pioneer Investments** | **Pioneer Investments** |  |  |  |  |  |
| **Victory Pioneer Select Mid Cap Growth VCT Portfolio** | **Victory Pioneer Select Mid Cap Growth VCT Portfolio** | **Victory Pioneer Select Mid Cap Growth VCT Portfolio** | **Victory Pioneer Select Mid Cap Growth VCT Portfolio** |  |  |  |
| Accumulation units |  |  |  |  |  |  |
| **2025** | 27521 | 61.127 | 1682285 |  | 1.40 | 18.81 |
| 2024 | 34394 | 51.446 | 1769431 |  | 1.40 | 22.21 |
| 2023 | 37530 | 42.097 | 1579885 |  | 1.40 | 17.13 |
| 2022 | 42992 | 35.938 | 1545049 |  | 1.40 | (32.01) |
| 2021 | 44333 | 52.858 | 2343364 |  | 1.40 | 6.57 |
|  |  |  |  |  |  | *(Continued)* |

---

------

**ALAC Separate Account 1**

**Notes to Financial Statements**

**<u>December 31, 2025</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| |<br>**Units** |<br>**Unit**<br>**Value** |<br>**Net**<br>**Assets** | **Investment**<br>**Income**<br>**Ratio (1)** |<br>**Expense**<br>**Ratio (2)** |<br>**Total**<br>**Return (3)** |
| **Royce Capital Fund** | **Royce Capital Fund** | **Royce Capital Fund** | | | | |
| **Micro-Cap Portfolio** | **Micro-Cap Portfolio** | | | | | |
| Accumulation units |  |  |  |  |  |  |
| **2025** | 4295 | $93.131 | $399997 | —% | 1.40% | 12.32% |
| 2024 | 4936 | 82.903 | 409209 |  | 1.40 | 12.09 |
| 2023 | 6263 | 73.973 | 463292 |  | 1.40 | 17.15 |
| 2022 | 7578 | 63.145 | 478516 |  | 1.40 | (23.51) |
| 2021 | 8178 | 82.550 | 675091 |  | 1.40 | 28.18 |
| **First Eagle Investment Management** | **First Eagle Investment Management** | **First Eagle Investment Management** |  |  |  |  |
| **Overseas Variable Fund** | **Overseas Variable Fund** |  |  |  |  |  |
| Accumulation units |  |  |  |  |  |  |
| **2025** | 8214 | 116.664 | 958280 | 1.73 | 1.40 | 35.57 |
| 2024 | 9263 | 86.059 | 797167 | 1.72 | 1.40 | 4.62 |
| 2023 | 10286 | 82.261 | 846132 |  | 1.40 | 8.56 |
| 2022 | 11398 | 75.773 | 863666 | 2.07 | 1.40 | (9.43) |
| 2021 | 12149 | 83.668 | 1016486 | 0.89 | 1.40 | 3.00 |
| **Neuberger Berman Advisors Management Trust** | **Neuberger Berman Advisors Management Trust** | **Neuberger Berman Advisors Management Trust** | **Neuberger Berman Advisors Management Trust** |  |  |  |
| **Mid Cap Growth Portfolio** | **Mid Cap Growth Portfolio** |  |  |  |  |  |
| Accumulation units |  |  |  |  |  |  |
| **2025** | 9553 | 29.554 | 282333 |  | 1.40 | 3.99 |
| 2024 | 10582 | 28.420 | 300738 |  | 1.40 | 22.29 |
| 2023 | 13546 | 23.239 | 314800 |  | 1.40 | 16.52 |
| 2022 | 14162 | 19.945 | 282460 |  | 1.40 | (29.72) |
| 2021 | 15066 | 28.378 | 427545 |  | 1.40 | 11.43 |
| **Neuberger Berman Advisors Management Trust** | **Neuberger Berman Advisors Management Trust** | **Neuberger Berman Advisors Management Trust** | **Neuberger Berman Advisors Management Trust** |  |  |  |
| **Quality Equity Portfolio** | **Quality Equity Portfolio** |  |  |  |  |  |
| Accumulation units |  |  |  |  |  |  |
| **2025** | 5535 | 68.480 | 379036 |  | 1.40 | 12.17 |
| 2024 | 5648 | 61.046 | 344788 | 0.22 | 1.40 | 24.09 |
| 2023 | 6273 | 49.201 | 308641 | 0.34 | 1.40 | 25.15 |
| 2022 | 7448 | 39.310 | 292782 | 0.44 | 1.40 | (19.58) |
| 2021 | 8118 | 48.882 | 396828 | 0.38 | 1.40 | 21.77 |
| **PIMCO Variable Insurance Trust** | **PIMCO Variable Insurance Trust** | **PIMCO Variable Insurance Trust** |  |  |  |  |
| **High Yield Portfolio** | **High Yield Portfolio** |  |  |  |  |  |
| Accumulation units |  |  |  |  |  |  |
| **2025** | 1963 | 29.836 | 58568 | 6.29 | 1.40 | 7.45 |
| 2024 | 2193 | 27.767 | 60893 | 5.85 | 1.40 | 5.41 |
| 2023 | 3741 | 26.341 | 98541 | 5.68 | 1.40 | 10.67 |
| 2022 | 4415 | 23.799 | 105071 | 5.05 | 1.40 | (11.52) |
| 2021 | 4718 | 26.901 | 126919 | 4.45 | 1.40 | 2.20 |
|  |  |  |  |  |  | *(Continued)* |

---

------

**ALAC Separate Account 1**

**Notes to Financial Statements**

**<u>December 31, 2025</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| |<br>**Units** |<br>**Unit**<br>**Value** |<br>**Net**<br>**Assets** | **Investment**<br>**Income**<br>**Ratio (1)** |<br>**Expense**<br>**Ratio (2)** |<br>**Total**<br>**Return (3)** |
| **PIMCO Variable Insurance Trust** | **PIMCO Variable Insurance Trust** | **PIMCO Variable Insurance Trust** | | | | |
| **Real Return Portfolio** | **Real Return Portfolio** | | | | | |
| Accumulation units |  |  |  |  |  |  |
| **2025** | 5294 | $24.698 | $130749 | 3.32% | 1.40% | 6.36% |
| 2024 | 6133 | 23.221 | 142412 | 2.62 | 1.40 | 0.72 |
| 2023 | 6562 | 23.055 | 151290 | 2.98 | 1.40 | 2.24 |
| 2022 | 7176 | 22.551 | 161827 | 7.01 | 1.40 | (13.12) |
| 2021 | 7407 | 25.959 | 192280 | 4.96 | 1.40 | 4.13 |
|  |  |  |  |  |  | *(Concluded)* |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;These percentages represent the dividends, excluding distributions of capital gains, received by the sub account from the underlying mutual fund, net of management fees assessed by the fund manager, divided by average net assets. These ratios exclude expenses assessed by the sub-account. The recognition of investment income by the sub-account is affected by the timing of the declaration of dividends by the underlying fund in which the sub-account invests. The investment income ratio is calculated for the effective period for each fund as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;These percentages represent the annualized contract expenses of the Separate Account, which consist of the mortality and expense guarantees and the asset-based administration fees. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to the contract owner accounts through redemption of units and expenses of the underlying funds are excluded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;These percentages represent the total return for the year, including changes in the value of the underlying fund, and reflect deductions for all items included in the expense ratio. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses would result in a reduction in the total return presented. The total return is calculated for the effective period for each fund as applicable.

**7.**&nbsp;&nbsp;&nbsp;&nbsp;**Subsequent Events**

The Company has evaluated subsequent events through April 30, 2026, the date that these financial statements were available to be issued. Based on this evaluation, no events have occurred subsequent to December 31, 2025 that require disclosure or adjustment to the financial statements at that date or for the period ended.

<br>