# EDGAR Filing Document

**Accession Number:** 0001058150
**File Stem:** 0001104659-26-052693
**Filing Date:** 2026-4
**Character Count:** 321971
**Document Hash:** 01985c4f0fd32637d5c39562b67271b0
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-052693.hdr.sgml**: 20260430

**ACCESSION NUMBER**: 0001104659-26-052693

**CONFORMED SUBMISSION TYPE**: N-VPFS

**PUBLIC DOCUMENT COUNT**: 3

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260430

**DATE AS OF CHANGE**: 20260430

**EFFECTIVENESS DATE**: 20260430

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** EQUITRUST LIFE VARIABLE ACCOUNT II
- **CENTRAL INDEX KEY:** 0001058150

**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:** 811-08981
- **FILM NUMBER:** 26923502

**BUSINESS ADDRESS:**
- **STREET 1:** 5400 UNIVERSITY AVE
- **CITY:** WEST DES MOINES
- **STATE:** IA
- **ZIP:** 50266
- **BUSINESS PHONE:** 5152255400

**MAIL ADDRESS:**
- **STREET 1:** 5400 UNIVERSITY AVE
- **CITY:** WEST DES MOINES
- **STATE:** IA
- **ZIP:** 50266

## Series and Classes Contracts Data

### EQUITRUST LIFE VARIABLE ACCOUNT II (Series ID: S000007275)

| Class ID   | Class Name                                                    | Ticker Symbol   |
|:---|:---|:---|
| C000019974 | Flexible Premium Variable Life Insurance Policy               |  |
| C000023451 | Flexible Premium Last Survivor Variable Life Insurance Policy |  |

**Report of Independent Registered Public Accounting Firm**

The Board of Directors and Contract Owners of

EquiTrust Life Variable Account II and

EquiTrust Life Insurance Company

***Opinion on the Financial Statements***

We have audited the accompanying statements of assets and liabilities of each of the subaccounts listed in the Appendix that comprise EquiTrust Life Variable Account II (the Accounts) as of December 31, 2025, and the related statements of operations for the year then ended, and the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Accounts as of December 31, 2025, and the results of their operations for the year then ended and changes in net assets for each of the years in the two-year period then ended, in conformity with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

These financial statements are the responsibility of the Accounts' management. Our responsibility is to express an opinion on the Accounts' financial statements 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 Accounts 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 are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Such procedures also included confirmation of securities owned as of December 31, 2025, by correspondence with the fund companies or their transfer agents, as applicable. 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. We believe that our audits provide a reasonable basis for our opinion.

/s/ Forvis Mazars LLP

We have served as the Accounts' auditor since 2024.

**West Des Moines, Iowa**

**April 30, 2026**

***Appendix***

 ****

Subaccounts comprising EquiTrust Life Variable Account II

---

| |
|:---|
| &nbsp;&nbsp;**Subaccounts** |
| &nbsp;&nbsp;BNY Mellon Sustainable U.S. Equity Portfolio - Service Shares |
| &nbsp;&nbsp;BNY Mellon VIF Appreciation Portfolio - Initial Shares |
| &nbsp;&nbsp;BNY Mellon VIF Growth & Income Portfolio - Initial Shares |
| &nbsp;&nbsp;BNY Mellon VIF Small Cap Portfolio - Initial Shares |
| &nbsp;&nbsp;CVT NASDAQ-100 Index Portfolio |
| &nbsp;&nbsp;CVT Russell 2000® Small Cap Index Portfolio |
| &nbsp;&nbsp;CVT S&P MidCap 400 Index Portfolio |
| &nbsp;&nbsp;Federated Hermes Government Money Fund II - Service Shares |
| &nbsp;&nbsp;Federated Hermes Managed Volatility Fund II - Primary Shares |
| &nbsp;&nbsp;Federated Hermes Quality Bond Fund II - Primary Shares |
| &nbsp;&nbsp;Fidelity® VIP Contrafund® Portfolio - Initial Class |
| &nbsp;&nbsp;Fidelity® VIP Growth & Income Portfolio - Initial Class |
| &nbsp;&nbsp;Fidelity® VIP Growth Portfolio - Initial Class |
| &nbsp;&nbsp;Fidelity® VIP High Income Portfolio - Service Class 2 |
| &nbsp;&nbsp;Fidelity® VIP Index 500 Portfolio - Initial Class |
| &nbsp;&nbsp;Fidelity® VIP Mid Cap Portfolio - Service Class 2 |
| &nbsp;&nbsp;Fidelity® VIP Overseas Portfolio - Initial Class |
| &nbsp;&nbsp;Franklin Global Real Estate VIP Fund - Class 2 |
| &nbsp;&nbsp;Franklin Mutual Shares VIP Fund - Class 2 |
| &nbsp;&nbsp;Franklin Small Cap Value VIP Fund - Class 2 |
| &nbsp;&nbsp;Franklin Small-Mid Cap Growth VIP Fund - Class 2 |
| &nbsp;&nbsp;Franklin U.S. Government Securities VIP Fund - Class 2 |
| &nbsp;&nbsp;Templeton Growth VIP Fund - Class 2 |
| &nbsp;&nbsp;LVIP American Century Capital Appreciation Fund – Standard II |
| &nbsp;&nbsp;LVIP American Century Mid Cap Value Fund – Standard II |
| &nbsp;&nbsp;LVIP American Century Ultra Fund – Standard II |
| &nbsp;&nbsp;LVIP American Century Value Fund – Standard II |
| &nbsp;&nbsp;LVIP JPMorgan Mid Cap Value Fund - Standard |
| &nbsp;&nbsp;LVIP JPMorgan Small Cap Core Fund - Standard |
| &nbsp;&nbsp;T. Rowe Price All-Cap Opportunities Portfolio |
| &nbsp;&nbsp;T. Rowe Price Equity Income Portfolio |
| &nbsp;&nbsp;T. Rowe Price Mid-Cap Growth Portfolio |
| &nbsp;&nbsp;T. Rowe Price Moderate Allocation Portfolio |
| &nbsp;&nbsp;T. Rowe Price International Stock Portfolio |

---

**EquiTrust Life Variable Account II**

**Statements of Assets and Liabilities**

**December 31, 2025**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Net assets** | **Investments in mutual funds** | **Investments in mutual funds** | |
| <br>**Subaccount** |<br>**Investments in**<br>**shares of mutual**<br>**funds, at fair**<br>**value** |<br>**Accumulation**<br>**units** |<br><br>**Cost** |<br><br>**Shares owned** |<br><br>**Accumulation**<br>**units outstanding** |
| BNY Mellon Sustainable U.S. Equity Portfolio - Service Shares | $2071 | $2071 | $1465 | 36.26 | 36.81 |
| BNY Mellon VIF Appreciation Portfolio - Initial Shares | 2974635 | 2974635 | 3108606 | 88346.74 | 51943.30 |
| BNY Mellon VIF Growth & Income Portfolio - Initial Shares | 1300783 | 1300783 | 983344 | 32699.43 | 19385.00 |
| BNY Mellon VIF Small Cap Portfolio - Initial Shares | 1386070 | 1386070 | 1287958 | 28876.46 | 35084.40 |
| CVT NASDAQ-100 Index Portfolio | 218073 | 218073 | 117417 | 1101.49 | 1265.88 |
| CVT Russell 2000® Small Cap Index Portfolio | 226068 | 226068 | 189885 | 2494.68 | 4244.25 |
| CVT S&P MidCap 400 Index Portfolio | 211531 | 211531 | 184486 | 1659.98 | 2914.64 |
| Federated Hermes Government Money Fund II - Service Shares | 658701 | 658701 | 658701 | 658701.04 | 63142.40 |
| Federated Hermes Managed Volatility Fund II - Primary Shares | 1642147 | 1642147 | 1585095 | 157898.78 | 72522.94 |
| Federated Hermes Quality Bond Fund II - Primary Shares | 538217 | 538217 | 543893 | 50871.13 | 40326.92 |
| Fidelity® VIP Contrafund® Portfolio - Initial Class | 2118260 | 2118260 | 1556162 | 35369.18 | 18682.27 |
| Fidelity® VIP Growth & Income Portfolio - Initial Class | 149297 | 149297 | 113509 | 4476.68 | 2310.87 |
| Fidelity® VIP Growth Portfolio - Initial Class | 719217 | 719217 | 669490 | 7359.98 | 8097.32 |
| Fidelity® VIP High Income Portfolio - Service Class 2 | 82883 | 82883 | 86482 | 17978.97 | 2495.93 |
| Fidelity® VIP Index 500 Portfolio - Initial Class | 887539 | 887539 | 393192 | 1344.49 | 11727.97 |
| Fidelity® VIP Mid Cap Portfolio - Service Class 2 | 726786 | 726786 | 706223 | 20664.95 | 8694.32 |
| Fidelity® VIP Overseas Portfolio - Initial Class | 106040 | 106040 | 90600 | 3853.18 | 2944.28 |
| Franklin Global Real Estate VIP Fund - Class 2 | 41253 | 41253 | 41644 | 3158.73 | 2319.20 |
| Franklin Mutual Shares VIP Fund - Class 2 | 150377 | 150377 | 150023 | 9340.20 | 3934.37 |
| Franklin Small Cap Value VIP Fund - Class 2 | 294167 | 294167 | 270625 | 21208.89 | 4372.88 |
| Franklin Small-Mid Cap Growth VIP Fund - Class 2 | 200851 | 200851 | 209039 | 14035.71 | 4026.03 |
| Franklin U.S. Government Securities VIP Fund - Class 2 | 114819 | 114819 | 126009 | 10935.12 | 7667.24 |
| Templeton Growth VIP Fund - Class 2 | 206858 | 206858 | 170908 | 14618.91 | 7088.21 |
| LVIP American Century Capital Appreciation Fund – Standard II | 85347 | 85347 | 79765 | 5629.72 | 1344.89 |
| LVIP American Century Mid Cap Value Fund – Standard II | 62472 | 62472 | 61978 | 3228.67 | 1638.19 |
| LVIP American Century Ultra Fund – Standard II | 181376 | 181376 | 135276 | 5758.71 | 2070.94 |
| LVIP American Century Value Fund – Standard II | 55601 | 55601 | 47943 | 4303.82 | 1594.79 |
| LVIP JPMorgan Mid Cap Value Fund - Standard | 431308 | 431308 | 482982 | 47859.30 | 5480.67 |
| LVIP JPMorgan Small Cap Core Fund - Standard | 266566 | 266566 | 249421 | 12146.45 | 5162.87 |
| T. Rowe Price All-Cap Opportunities Portfolio | 1650984 | 1650984 | 1408787 | 41628.44 | 18213.68 |
| T. Rowe Price Equity Income Portfolio | 831308 | 831308 | 790645 | 28755.04 | 14355.35 |
| T. Rowe Price Mid-Cap Growth Portfolio | 2349656 | 2349656 | 2512797 | 89681.51 | 22755.38 |
| T. Rowe Price Moderate Allocation Portfolio | 1213772 | 1213772 | 1111600 | 54113.78 | 25378.32 |
| T. Rowe Price International Stock Portfolio | 398136 | 398136 | 380470 | 25039.99 | 14860.64 |

---

*See accompanying notes, including note 6 which includes per unit information.*

**EquiTrust Life Variable Account II**

**Statements of Operations**

**Year Ended December 31, 2025**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | **Realized gain (loss) on** | **Realized gain (loss) on** | | | |
| |<br>**Income** |<br>**Expenses** | | **investments** | **investments** | | | |
| <br>**Subaccount** |<br><br>**Dividends** |<br><br>**Mortality and**<br>**expense risk** |<br><br><br>**Net investment**<br>**income (loss)** |<br>**Realized gain**<br>**(loss) on sale**<br>**of fund shares** |<br><br>**Realized gain**<br>**distributions** |<br><br>**Net realized**<br>**gain (loss) on**<br>**investments** |<br>**Change in**<br>**unrealized**<br>**appreciation/**<br>**depreciation of**<br>**investments** |<br><br>**Net increase in**<br>**net assets from**<br>**operations** |
| BNY Mellon Sustainable U.S. Equity Portfolio - Service Shares | $1 | $(17) | $(16) | $41 | $158 | $199 | $82 | $265 |
| BNY Mellon VIF Appreciation Portfolio - Initial Shares | 10654 | (26054) | (15400) | (52528) | 440559 | 388031 | (120834) | 251797 |
| BNY Mellon VIF Growth & Income Portfolio - Initial Shares | 5507 | (10865) | (5358) | 17720 | 95947 | 113667 | 73336 | 181645 |
| BNY Mellon VIF Small Cap Portfolio - Initial Shares | 9133 | (12122) | (2989) | 8004 |  | 8004 | 122671 | 127686 |
| CVT NASDAQ-100 Index Portfolio | 537 | (1712) | (1175) | 4908 | 3154 | 8062 | 27804 | 34691 |
| CVT Russell 2000® Small Cap Index Portfolio | 3241 | (1811) | 1430 | 721 | 10546 | 11267 | 10238 | 22935 |
| CVT S&P MidCap 400 Index Portfolio | 2221 | (1807) | 414 | 2321 | 13374 | 15695 | (4027) | 12082 |
| Federated Hermes Government Money Fund II - Service Shares | 24437 | (5972) | 18465 |  |  |  |  | 18465 |
| Federated Hermes Managed Volatility Fund II - Primary Shares | 46900 | (14411) | 32489 | (32386) | 28612 | (3774) | 64580 | 93295 |
| Federated Hermes Quality Bond Fund II - Primary Shares | 18765 | (4972) | 13793 | (6928) |  | (6928) | 26274 | 33139 |
| Fidelity® VIP Contrafund® Portfolio - Initial Class | 2764 | (17748) | (14984) | 94169 | 317812 | 411981 | (27055) | 369942 |
| Fidelity® VIP Growth & Income Portfolio - Initial Class | 2147 | (1285) | 862 | 12204 | 13073 | 25277 | 1424 | 27563 |
| Fidelity® VIP Growth Portfolio - Initial Class | 1982 | (6246) | (4264) | 26131 | 88246 | 114377 | (18160) | 91953 |
| Fidelity® VIP High Income Portfolio - Service Class 2 | 5427 | (877) | 4550 | (3889) |  | (3889) | 8081 | 8742 |
| Fidelity® VIP Index 500 Portfolio - Initial Class | 9467 | (7236) | 2231 | 15930 | 4150 | 20080 | 105213 | 127524 |
| Fidelity® VIP Mid Cap Portfolio - Service Class 2 | 1688 | (6223) | (4535) | 4345 | 82453 | 86798 | (12072) | 70191 |
| Fidelity® VIP Overseas Portfolio - Initial Class | 1642 | (901) | 741 | 883 | 9119 | 10002 | 6337 | 17080 |
| Franklin Global Real Estate VIP Fund - Class 2 | 558 | (362) | 196 | (2173) |  | (2173) | 4707 | 2730 |
| Franklin Mutual Shares VIP Fund - Class 2 | 2921 | (1426) | 1495 | (4736) | 14391 | 9655 | 4694 | 15844 |
| Franklin Small Cap Value VIP Fund - Class 2 | 3131 | (2554) | 577 | (12801) | 24419 | 11618 | 6021 | 18216 |
| Franklin Small-Mid Cap Growth VIP Fund - Class 2 |  | (1850) | (1850) | (2010) | 11851 | 9841 | (4276) | 3715 |
| Franklin U.S. Government Securities VIP Fund - Class 2 | 4651 | (1163) | 3488 | (7463) |  | (7463) | 11179 | 7204 |
| Templeton Growth VIP Fund - Class 2 | 1636 | (1674) | (38) | 654 | 14043 | 14697 | 23837 | 38496 |
| LVIP American Century Capital Appreciation Fund – Standard II |  | (758) | (758) | 612 | 13791 | 14403 | (8919) | 4726 |
| LVIP American Century Mid Cap Value Fund – Standard II | 1169 | (541) | 628 | 587 | 5011 | 5598 | (1550) | 4676 |
| LVIP American Century Ultra Fund – Standard II |  | (1494) | (1494) | 2206 | 14335 | 16541 | 4206 | 19253 |
| LVIP American Century Value Fund – Standard II | 857 | (617) | 240 | 6088 | 4042 | 10130 | (827) | 9543 |
| LVIP JPMorgan Mid Cap Value Fund - Standard | 4766 | (4007) | 759 | (9602) | 45625 | 36023 | (21627) | 15155 |
| LVIP JPMorgan Small Cap Core Fund - Standard | 1585 | (2202) | (617) | (1765) | 20172 | 18407 | 4018 | 21808 |
| T. Rowe Price All-Cap Opportunities Portfolio |  | (14241) | (14241) | 64162 | 181041 | 245203 | (3642) | 227320 |
| T. Rowe Price Equity Income Portfolio | 12993 | (7054) | 5939 | 1385 | 79005 | 80390 | 13199 | 99528 |
| T. Rowe Price Mid-Cap Growth Portfolio |  | (21435) | (21435) | 23712 | 296872 | 320584 | (240683) | 58466 |
| T. Rowe Price Moderate Allocation Portfolio | 26321 | (10421) | 15900 | 1764 | 51798 | 53562 | 77832 | 147294 |

---

*See accompanying notes.*

**EquiTrust Life Variable Account II**

**Statements of Operations (continued)**

**Year Ended December 31, 2025**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | **Realized gain (loss) on** | **Realized gain (loss) on** | | | |
| |<br>**Income** |<br>**Expenses** | | **investments** | **investments** | | | |
| <br>**Subaccount** |<br><br>**Dividends** |<br><br>**Mortality and**<br>**expense risk** |<br><br><br>**Net investment**<br>**income (loss)** |<br>**Realized gain**<br>**(loss) on sale**<br>**of fund shares** |<br><br>**Realized gain**<br>**distributions** |<br><br>**Net realized**<br>**gain (loss) on**<br>**investments** |<br>**Change in**<br>**unrealized**<br>**appreciation/**<br>**depreciation of**<br>**investments** |<br><br>**Net increase in**<br>**net assets from**<br>**operations** |
| T. Rowe Price International Stock Portfolio | $7442 | $(3566) | $3876 | $9009 | $32685 | $41694 | $18069 | $63639 |

---

*See accompanying notes.*

**EquiTrust Life Variable Account II**

**Statements of Changes in Net Assets**

**For the Year Ended December 31, 2025**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Operations** | **Operations** | **Operations** | | **Contract transactions** | **Contract transactions** | **Contract transactions** | **Contract transactions** | **Contract transactions** | | | |
| <br>**Subaccount** |<br><br><br>**Net Assets at**<br>**December 31,**<br>**2024** |<br><br>**Net**<br>**investment**<br>**income**<br>**(loss)** |<br><br>**Net realized**<br>**gain (loss)**<br>**on**<br>**investments** |<br>**Change in**<br>**unrealized**<br>**appreciation/**<br>**depreciation**<br>**of**<br>**investments** |<br><br><br>**Net increase**<br>**in net assets**<br>**from**<br>**operations** |<br><br><br>**Transfers**<br>**of net**<br>**premiums** |<br><br>**Transfers**<br>**of**<br>**surrenders**<br>**and death**<br>**benefits** |<br><br><br>**Transfers**<br>**of policy**<br>**loans** |<br><br>**Transfers**<br>**of cost of**<br>**insurance**<br>**and other**<br>**charges** | **Transfers**<br>**between**<br>**subaccounts,**<br>**including**<br>**Declared**<br>**Interest**<br>**Option**<br>**account** |<br><br>**Net increase**<br>**(decrease) in**<br>**net assets**<br>**from**<br>**contract**<br>**transactions** |<br><br>**Total**<br>**increase**<br>**(decrease)**<br>**in net**<br>**assets** |<br><br><br>**Net Assets at**<br>**December 31,**<br>**2025** |
| BNY Mellon Sustainable U.S. Equity Portfolio - Service Shares | $1858 | $(16) | $199 | $82 | $265 | $76 | $- | $- | $(128) | $- | $(52) | $213 | $2071 |
| BNY Mellon VIF Appreciation Portfolio - Initial Shares | 2933595 | (15400) | 388031 | (120834) | 251797 | 66705 | (167682) | (11507) | (88410) | (9863) | (210757) | 41040 | 2974635 |
| BNY Mellon VIF Growth & Income Portfolio - Initial Shares | 1191397 | (5358) | 113667 | 73336 | 181645 | 19931 | (34056) | (10694) | (34900) | (12540) | (72259) | 109386 | 1300783 |
| BNY Mellon VIF Small Cap Portfolio - Initial Shares | 1393800 | (2989) | 8004 | 122671 | 127686 | 47649 | (110109) | (1708) | (46117) | (25131) | (135416) | (7730) | 1386070 |
| CVT NASDAQ-100 Index Portfolio | 178314 | (1175) | 8062 | 27804 | 34691 | 12557 |  |  | (7489) |  | 5068 | 39759 | 218073 |
| CVT Russell 2000® Small Cap Index Portfolio | 199814 | 1430 | 11267 | 10238 | 22935 | 13567 |  |  | (10146) | (102) | 3319 | 26254 | 226068 |
| CVT S&P MidCap 400 Index Portfolio | 204732 | 414 | 15695 | (4027) | 12082 | 4575 | (4082) |  | (5716) | (60) | (5283) | 6799 | 211531 |
| Federated Hermes Government Money Fund II - Service Shares | 668331 | 18465 |  |  | 18465 | 39926 | (32901) | (3971) | (24641) | (6508) | (28095) | (9630) | 658701 |
| Federated Hermes Managed Volatility Fund II - Primary Shares | 1659308 | 32489 | (3774) | 64580 | 93295 | 74829 | (80583) | (9282) | (61180) | (34240) | (110456) | (17161) | 1642147 |
| Federated Hermes Quality Bond Fund II - Primary Shares | 557603 | 13793 | (6928) | 26274 | 33139 | 33385 | (42115) | (702) | (27635) | (15458) | (52525) | (19386) | 538217 |
| Fidelity® VIP Contrafund® Portfolio - Initial Class | 1919207 | (14984) | 411981 | (27055) | 369942 | 44444 | (145779) | (9567) | (60606) | 619 | (170889) | 199053 | 2118260 |
| Fidelity® VIP Growth & Income Portfolio - Initial Class | 139637 | 862 | 25277 | 1424 | 27563 | 4896 | (22761) |  | (5057) | 5019 | (17903) | 9660 | 149297 |
| Fidelity® VIP Growth Portfolio - Initial Class | 685485 | (4264) | 114377 | (18160) | 91953 | 14675 | (45738) | (1389) | (25612) | (157) | (58221) | 33732 | 719217 |
| Fidelity® VIP High Income Portfolio - Service Class 2 | 106354 | 4550 | (3889) | 8081 | 8742 | 2624 | (31923) |  | (2914) |  | (32213) | (23471) | 82883 |
| Fidelity® VIP Index 500 Portfolio - Initial Class | 767727 | 2231 | 20080 | 105213 | 127524 | 14540 |  | (826) | (19649) | (1777) | (7712) | 119812 | 887539 |
| Fidelity® VIP Mid Cap Portfolio - Service Class 2 | 717995 | (4535) | 86798 | (12072) | 70191 | 32812 | (41075) | (11226) | (41442) | (469) | (61400) | 8791 | 726786 |

---

*See accompanying notes.*

**EquiTrust Life Variable Account II**

**Statements of Changes in Net Assets (continued)**

**For the Year Ended December 31, 2025**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Operations** | **Operations** | **Operations** | | **Contract transactions** | **Contract transactions** | **Contract transactions** | **Contract transactions** | **Contract transactions** | | | |
| <br>**Subaccount** |<br><br><br>**Net Assets at**<br>**December 31,**<br>**2024** |<br><br>**Net**<br>**investment**<br>**income**<br>**(loss)** |<br><br>**Net realized**<br>**gain (loss)**<br>**on**<br>**investments** |<br>**Change in**<br>**unrealized**<br>**appreciation/**<br>**depreciation**<br>**of**<br>**investments** |<br><br><br>**Net increase**<br>**in net assets**<br>**from**<br>**operations** |<br><br><br>**Transfers**<br>**of net**<br>**premiums** |<br><br>**Transfers**<br>**of**<br>**surrenders**<br>**and death**<br>**benefits** |<br><br><br>**Transfers**<br>**of policy**<br>**loans** |<br><br>**Transfers**<br>**of cost of**<br>**insurance**<br>**and other**<br>**charges** | **Transfers**<br>**between**<br>**subaccounts,**<br>**including**<br>**Declared**<br>**Interest**<br>**Option**<br>**account** |<br><br>**Net increase**<br>**(decrease) in**<br>**net assets**<br>**from**<br>**contract**<br>**transactions** |<br><br>**Total**<br>**increase**<br>**(decrease)**<br>**in net**<br>**assets** |<br><br><br>**Net Assets at**<br>**December 31,**<br>**2025** |
| Fidelity® VIP Overseas Portfolio - Initial Class | $88630 | $741 | $10002 | $6337 | $17080 | $3718 | $(1032) | $- | $(2158) | $(198) | $330 | $17410 | $106040 |
| Franklin Global Real Estate VIP Fund - Class 2 | 41458 | 196 | (2173) | 4707 | 2730 | 3506 |  | (3538) | (2903) |  | (2935) | (205) | 41253 |
| Franklin Mutual Shares VIP Fund - Class 2 | 163955 | 1495 | 9655 | 4694 | 15844 | 7464 | (30753) |  | (6062) | (71) | (29422) | (13578) | 150377 |
| Franklin Small Cap Value VIP Fund - Class 2 | 304681 | 577 | 11618 | 6021 | 18216 | 14439 | (24235) | (7466) | (14058) | 2590 | (28730) | (10514) | 294167 |
| Franklin Small-Mid Cap Growth VIP Fund - Class 2 | 208757 | (1850) | 9841 | (4276) | 3715 | 4182 | (10752) |  | (5012) | (39) | (11621) | (7906) | 200851 |
| Franklin U.S. Government Securities VIP Fund - Class 2 | 137682 | 3488 | (7463) | 11179 | 7204 | 4627 | (29549) | (140) | (4995) | (10) | (30067) | (22863) | 114819 |
| Templeton Growth VIP Fund - Class 2 | 174124 | (38) | 14697 | 23837 | 38496 | 17190 | (5842) | (6223) | (10797) | (90) | (5762) | 32734 | 206858 |
| LVIP American Century Capital Appreciation Fund – Standard II | 80749 | (758) | 14403 | (8919) | 4726 | 3539 |  |  | (3667) |  | (128) | 4598 | 85347 |
| LVIP American Century Mid Cap Value Fund – Standard II | 58797 | 628 | 5598 | (1550) | 4676 | 474 |  |  | (1475) |  | (1001) | 3675 | 62472 |
| LVIP American Century Ultra Fund – Standard II | 164481 | (1494) | 16541 | 4206 | 19253 | 2248 |  |  | (4606) |  | (2358) | 16895 | 181376 |
| LVIP American Century Value Fund – Standard II | 76100 | 240 | 10130 | (827) | 9543 | 2341 | (30017) |  | (2366) |  | (30042) | (20499) | 55601 |
| LVIP JPMorgan Mid Cap Value Fund - Standard | 483723 | 759 | 36023 | (21627) | 15155 | 13402 | (59808) | (3657) | (17838) | 331 | (67570) | (52415) | 431308 |
| LVIP JPMorgan Small Cap Core Fund - Standard | 254935 | (617) | 18407 | 4018 | 21808 | 6524 | (10732) |  | (6447) | 478 | (10177) | 11631 | 266566 |
| T. Rowe Price All-Cap Opportunities Portfolio | 1561126 | (14241) | 245203 | (3642) | 227320 | 23622 | (111874) | (2055) | (44422) | (2733) | (137462) | 89858 | 1650984 |
| T. Rowe Price Equity Income Portfolio | 765372 | 5939 | 80390 | 13199 | 99528 | 15180 | (16443) | (4810) | (23235) | (4284) | (33592) | 65936 | 831308 |
| T. Rowe Price Mid-Cap Growth Portfolio | 2521920 | (21435) | 320584 | (240683) | 58466 | 44134 | (199089) | (853) | (65111) | (9811) | (230730) | (172264) | 2349656 |

---

*See accompanying notes.*

**EquiTrust Life Variable Account II**

**Statements of Changes in Net Assets (continued)**

**For the Year Ended December 31, 2025**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Operations** | **Operations** | **Operations** | | **Contract transactions** | **Contract transactions** | **Contract transactions** | **Contract transactions** | **Contract transactions** | | | |
| <br>**Subaccount** |<br><br><br>**Net Assets at**<br>**December 31,**<br>**2024** |<br><br>**Net**<br>**investment**<br>**income**<br>**(loss)** |<br><br>**Net realized**<br>**gain (loss)**<br>**on**<br>**investments** |<br>**Change in**<br>**unrealized**<br>**appreciation/**<br>**depreciation**<br>**of**<br>**investments** |<br><br><br>**Net increase**<br>**in net assets**<br>**from**<br>**operations** |<br><br><br>**Transfers**<br>**of net**<br>**premiums** |<br><br>**Transfers**<br>**of**<br>**surrenders**<br>**and death**<br>**benefits** |<br><br><br>**Transfers**<br>**of policy**<br>**loans** |<br><br>**Transfers**<br>**of cost of**<br>**insurance**<br>**and other**<br>**charges** | **Transfers**<br>**between**<br>**subaccounts,**<br>**including**<br>**Declared**<br>**Interest**<br>**Option**<br>**account** |<br><br>**Net increase**<br>**(decrease) in**<br>**net assets**<br>**from**<br>**contract**<br>**transactions** |<br><br>**Total**<br>**increase**<br>**(decrease)**<br>**in net**<br>**assets** |<br><br><br>**Net Assets at**<br>**December 31,**<br>**2025** |
| T. Rowe Price Moderate Allocation Portfolio | $1139353 | $15900 | $53562 | $77832 | $147294 | $40776 | $(57427) | $(10272) | $(40756) | $(5196) | $(72875) | $74419 | $1213772 |
| T. Rowe Price International Stock Portfolio | 380724 | 3876 | 41694 | 18069 | 63639 | 26243 | (63860) |  | (15313) | 6703 | (46227) | 17412 | 398136 |

---

*See accompanying notes.*

**EquiTrust Life Variable Account II**

**Statements of Changes in Net Assets**

**For the Year Ended December 31, 2024**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Operations** | **Operations** | **Operations** | | **Contract transactions** | **Contract transactions** | **Contract transactions** | **Contract transactions** | **Contract transactions** | | | |
| <br>**Subaccount** |<br><br><br>**Net Assets at**<br>**December 31,**<br>**2023** |<br><br>**Net**<br>**investment**<br>**income**<br>**(loss)** |<br><br>**Net realized**<br>**gain (loss)**<br>**on**<br>**investments** |<br>**Change in**<br>**unrealized**<br>**appreciation/**<br>**depreciation**<br>**of**<br>**investments** |<br><br>**Net increase**<br>**(decrease) in**<br>**net assets**<br>**from**<br>**operations** |<br><br><br>**Transfers**<br>**of net**<br>**premiums** |<br><br>**Transfers**<br>**of**<br>**surrenders**<br>**and death**<br>**benefits** |<br><br><br>**Transfers**<br>**of policy**<br>**loans** |<br><br>**Transfers**<br>**of cost of**<br>**insurance**<br>**and other**<br>**charges** | **Transfers**<br>**between**<br>**subaccounts,**<br>**including**<br>**Declared**<br>**Interest**<br>**Option**<br>**account** |<br><br>**Net increase**<br>**(decrease) in**<br>**net assets**<br>**from**<br>**contract**<br>**transactions** |<br><br>**Total**<br>**increase**<br>**(decrease)**<br>**in net**<br>**assets** |<br><br><br>**Net Assets at**<br>**December 31,**<br>**2024** |
| BNY Mellon Sustainable U.S. Equity Portfolio - Service Shares | $1544 | $(10) | $47 | $320 | $357 | $76 | $- | $- | $(119) | $- | $(43) | $314 | $1858 |
| BNY Mellon VIF Appreciation Portfolio - Initial Shares | 2746795 | (13913) | 163773 | 166988 | 316848 | 65382 | (79378) | (3024) | (92905) | (20123) | (130048) | 186800 | 2933595 |
| BNY Mellon VIF Growth & Income Portfolio - Initial Shares | 1010112 | (4052) | 62384 | 157918 | 216250 | 23203 | (20719) |  | (37059) | (390) | (34965) | 181285 | 1191397 |
| BNY Mellon VIF Small Cap Portfolio - Initial Shares | 1408856 | (3113) | 35130 | 18202 | 50219 | 50216 | (33965) | (5665) | (54501) | (21360) | (65275) | (15056) | 1393800 |
| CVT NASDAQ-100 Index Portfolio | 145902 | (924) | 14357 | 21496 | 34929 | 2463 |  | (300) | (4672) | (8) | (2517) | 32412 | 178314 |
| CVT Russell 2000® Small Cap Index Portfolio | 201484 | 613 | 5708 | 13028 | 19349 | 7696 | (4676) | (4848) | (8244) | (10947) | (21019) | (1670) | 199814 |
| CVT S&P MidCap 400 Index Portfolio | 198707 | 561 | 14633 | 8887 | 24081 | 6881 | (281) | (4051) | (7010) | (13595) | (18056) | 6025 | 204732 |
| Federated Hermes Government Money Fund II - Service Shares | 662440 | 24579 |  |  | 24579 | 42955 | (21433) | (644) | (26862) | (12704) | (18688) | 5891 | 668331 |
| Federated Hermes Managed Volatility Fund II - Primary Shares | 1483977 | 20429 | (34569) | 228864 | 214724 | 82800 | (55972) | (2273) | (62820) | (1128) | (39393) | 175331 | 1659308 |
| Federated Hermes Quality Bond Fund II - Primary Shares | 548690 | 11249 | (4270) | 9043 | 16022 | 36989 | (8547) | (1383) | (28870) | (5298) | (7109) | 8913 | 557603 |
| Fidelity® VIP Contrafund® Portfolio - Initial Class | 1484041 | (12790) | 255840 | 240383 | 483433 | 42646 | (42065) | (5778) | (58793) | 15723 | (48267) | 435166 | 1919207 |
| Fidelity® VIP Growth & Income Portfolio - Initial Class | 120561 | 714 | 19640 | 5720 | 26074 | 5003 | (18784) | (2277) | (6272) | 15332 | (6998) | 19076 | 139637 |
| Fidelity® VIP Growth Portfolio - Initial Class | 518977 | (5735) | 155312 | 4620 | 154197 | 15189 | (5792) | (2415) | (25320) | 30649 | 12311 | 166508 | 685485 |
| Fidelity® VIP High Income Portfolio - Service Class 2 | 97868 | 5561 | (150) | 2106 | 7517 | 3860 |  |  | (2871) | (20) | 969 | 8486 | 106354 |
| Fidelity® VIP Index 500 Portfolio - Initial Class | 628631 | 2793 | 35544 | 109846 | 148183 | 16997 | (720) | (12209) | (18250) | 5095 | (9087) | 139096 | 767727 |
| Fidelity® VIP Mid Cap Portfolio - Service Class 2 | 654761 | (3984) | 112591 | (4196) | 104411 | 27169 | (27692) | (1247) | (39080) | (327) | (41177) | 63234 | 717995 |

---

*See accompanying notes.*

 

**EquiTrust Life Variable Account II**

**Statements of Changes in Net Assets (continued)**

**For the Year Ended December 31, 2024**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Operations** | **Operations** | **Operations** | | **Contract transactions** | **Contract transactions** | **Contract transactions** | **Contract transactions** | **Contract transactions** | | | |
| <br>**Subaccount** |<br><br><br>**Net Assets at**<br>**December 31,**<br>**2023** |<br><br>**Net**<br>**investment**<br>**income**<br>**(loss)** |<br><br>**Net realized**<br>**gain (loss)**<br>**on**<br>**investments** |<br>**Change in**<br>**unrealized**<br>**appreciation/**<br>**depreciation**<br>**of**<br>**investments** |<br><br>**Net increase**<br>**(decrease) in**<br>**net assets**<br>**from**<br>**operations** |<br><br><br>**Transfers**<br>**of net**<br>**premiums** |<br><br>**Transfers**<br>**of**<br>**surrenders**<br>**and death**<br>**benefits** |<br><br><br>**Transfers**<br>**of policy**<br>**loans** |<br><br>**Transfers**<br>**of cost of**<br>**insurance**<br>**and other**<br>**charges** | **Transfers**<br>**between**<br>**subaccounts,**<br>**including**<br>**Declared**<br>**Interest**<br>**Option**<br>**account** |<br><br>**Net increase**<br>**(decrease) in**<br>**net assets**<br>**from**<br>**contract**<br>**transactions** |<br><br>**Total**<br>**increase**<br>**(decrease)**<br>**in net**<br>**assets** |<br><br><br>**Net Assets at**<br>**December 31,**<br>**2024** |
| Fidelity® VIP Overseas Portfolio - Initial Class | $79386 | $679 | $5008 | $(2601) | $3086 | $3809 | $(850) | $(440) | $(2109) | $5748 | $6158 | $9244 | $88630 |
| Franklin Global Real Estate VIP Fund - Class 2 | 54793 | 366 | (5607) | 4192 | (1049) | 3725 |  |  | (2913) | (13098) | (12286) | (13335) | 41458 |
| Franklin Mutual Shares VIP Fund - Class 2 | 147004 | 1770 | 2571 | 10798 | 15139 | 7736 |  |  | (5883) | (41) | 1812 | 16951 | 163955 |
| Franklin Small Cap Value VIP Fund - Class 2 | 288288 | 117 | (947) | 31804 | 30974 | 13447 | (14307) |  | (13493) | (228) | (14581) | 16393 | 304681 |
| Franklin Small-Mid Cap Growth VIP Fund - Class 2 | 198869 | (1866) | (1326) | 23335 | 20143 | 4322 | (9080) | (381) | (5070) | (46) | (10255) | 9888 | 208757 |
| Franklin U.S. Government Securities VIP Fund - Class 2 | 137617 | 2933 | (1069) | (1255) | 609 | 5119 | (493) |  | (5151) | (19) | (544) | 65 | 137682 |
| Templeton Growth VIP Fund - Class 2 | 185390 | 101 | (3506) | 12124 | 8719 | 9337 | (20557) | (168) | (8619) | 22 | (19985) | (11266) | 174124 |
| LVIP American Century Capital Appreciation Fund – Standard II | 64953 | (662) | 4473 | 11743 | 15554 | 3483 |  |  | (3241) |  | 242 | 15796 | 80749 |
| LVIP American Century Mid Cap Value Fund – Standard II | 55482 | 960 | 3420 | (101) | 4279 | 474 |  |  | (1438) |  | (964) | 3315 | 58797 |
| LVIP American Century Ultra Fund – Standard II | 138372 | (1396) | 18872 | 19646 | 37122 | 2958 |  | (9251) | (4720) |  | (11013) | 26109 | 164481 |
| LVIP American Century Value Fund – Standard II | 69901 | 1529 | 4468 | (45) | 5952 | 2656 |  |  | (2390) | (19) | 247 | 6199 | 76100 |
| LVIP JPMorgan Mid Cap Value Fund - Standard | 431820 | 1685 | 73701 | (18361) | 57025 | 13213 |  | (392) | (17934) | (9) | (5122) | 51903 | 483723 |
| LVIP JPMorgan Small Cap Core Fund - Standard | 237213 | (253) | 2358 | 23482 | 25587 | 7017 | (6422) |  | (8147) | (313) | (7865) | 17722 | 254935 |
| T. Rowe Price All-Cap Opportunities Portfolio | 1305705 | (12273) | 198437 | 122783 | 308947 | 22250 | (22409) | (8990) | (42964) | (1413) | (53526) | 255421 | 1561126 |
| T. Rowe Price Equity Income Portfolio | 731277 | 7147 | 54508 | 15853 | 77508 | 19160 | (27893) | (11035) | (22988) | (657) | (43413) | 34095 | 765372 |
| T. Rowe Price Mid-Cap Growth Portfolio | 2410888 | (22519) | 241198 | (21077) | 197602 | 44651 | (38748) | (11047) | (73311) | (8115) | (86570) | 111032 | 2521920 |

---

*See accompanying notes.*

**EquiTrust Life Variable Account II**

**Statements of Changes in Net Assets (continued)**

**For the Year Ended December 31, 2024**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Operations** | **Operations** | **Operations** | | **Contract transactions** | **Contract transactions** | **Contract transactions** | **Contract transactions** | **Contract transactions** | | | |
| <br>**Subaccount** |<br><br><br>**Net Assets at**<br>**December 31,**<br>**2023** |<br><br>**Net**<br>**investment**<br>**income**<br>**(loss)** |<br><br>**Net realized**<br>**gain (loss)**<br>**on**<br>**investments** |<br>**Change in**<br>**unrealized**<br>**appreciation/**<br>**depreciation**<br>**of**<br>**investments** |<br><br>**Net increase**<br>**(decrease) in**<br>**net assets**<br>**from**<br>**operations** |<br><br><br>**Transfers**<br>**of net**<br>**premiums** |<br><br>**Transfers**<br>**of**<br>**surrenders**<br>**and death**<br>**benefits** |<br><br><br>**Transfers**<br>**of policy**<br>**loans** |<br><br>**Transfers**<br>**of cost of**<br>**insurance**<br>**and other**<br>**charges** | **Transfers**<br>**between**<br>**subaccounts,**<br>**including**<br>**Declared**<br>**Interest**<br>**Option**<br>**account** |<br><br>**Net increase**<br>**(decrease) in**<br>**net assets**<br>**from**<br>**contract**<br>**transactions** |<br><br>**Total**<br>**increase**<br>**(decrease)**<br>**in net**<br>**assets** |<br><br><br>**Net Assets at**<br>**December 31,**<br>**2024** |
| T. Rowe Price Moderate Allocation Portfolio | $1082346 | $15657 | $31236 | $49023 | $95916 | $39935 | $(33848) | $(813) | $(38967) | $(5216) | $(38909) | $57007 | $1139353 |
| T. Rowe Price International Stock Portfolio | 374582 | 166 | 8968 | (398) | 8736 | 15788 | (2715) | (199) | (13042) | (2426) | (2594) | 6142 | 380724 |

---

*See accompanying notes.*

**EquiTrust Life Variable Account II**

**Notes to Financial Statements**

**December 31, 2025**

**1. Organization and Significant Accounting Policies**

**Organization**

EquiTrust Life Variable Account II (the Account), a unit investment trust registered under the Investment Company Act of 1940, as amended, was established by EquiTrust Life Insurance Company (the Company). The Account is a funding vehicle for flexible premium variable life insurance policies and flexible premium last survivor variable life insurance policies issued by the Company. The Company discontinued underwriting new sales of all variable life insurance policies but continues to receive premiums from sales that occurred prior to this change.

The assets and liabilities of the Account are clearly identified and distinguished from the Company's other assets and liabilities. The portion of the Account's assets applicable to the life insurance policies is not available to satisfy liabilities arising out of any other business the Company may conduct.

At the direction of eligible policy owners, the Account invests in the following thirty-five investment subaccounts which, in turn, own open-end mutual fund shares of registered investment companies (the Funds). Eligible policy owners may also allocate funds to the Declared Interest Option (DIO) account. The DIO is funded by the general account of the Company and pays interest at declared rates with a guaranteed minimum. Assets and liabilities associated with funds allocated to the DIO are excluded from the Account as these are included in the Company's general account.

---

| | |
|:---|:---|
| **Subaccount / Fund** | **Subaccount / Fund** |
| &nbsp;&nbsp;&nbsp;**BNY Mellon Sustainable U.S. Equity Portfolio, Inc.** | &nbsp;&nbsp;&nbsp;**Franklin Templeton Variable Insurance Products Trust** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BNY Mellon Sustainable U.S. Equity Portfolio - Service Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franklin Global Real Estate VIP Fund - Class 2 |
| &nbsp;&nbsp;&nbsp;**BNY Mellon Variable Investment Fund** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franklin Mutual Shares VIP Fund - Class 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BNY Mellon VIF Appreciation Portfolio - Initial Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franklin Small Cap Value VIP Fund - Class 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BNY Mellon VIF Growth & Income Portfolio - Initial Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franklin Small-Mid Cap Growth VIP Fund - Class 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BNY Mellon VIF Small Cap Portfolio - Initial Shares (2) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franklin U.S. Government Securities VIP Fund - Class 2 |
| &nbsp;&nbsp;&nbsp;**Calvert Variable Trust, Inc.** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Templeton Growth VIP Fund - Class 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CVT NASDAQ-100 Index Portfolio | &nbsp;&nbsp;&nbsp;**Lincoln Variable Insurance Products Trust** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CVT Russell 2000® Small Cap Index Portfolio | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LVIP American Century Capital Appreciation Fund - Standard II |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CVT S&P MidCap 400 Index Portfolio | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LVIP American Century Inflation Protection Fund - Standard II (1) |
| &nbsp;&nbsp;&nbsp;**Federated Hermes Insurance Series** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LVIP American Century Mid Cap Value Fund – Standard II |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federated Hermes Government Money Fund II - Service Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LVIP American Century Ultra Fund – Standard II |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federated Hermes Managed Volatility Fund II - Primary Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LVIP American Century Value Fund – Standard II |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federated Hermes Quality Bond Fund II - Primary Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LVIP JPMorgan Mid Cap Value Fund – Standard |
| &nbsp;&nbsp;&nbsp;**Fidelity® Variable Insurance Products Funds** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LVIP JPMorgan Small Cap Core Fund – Standard |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fidelity® VIP Contrafund® Portfolio - Initial Class | &nbsp;&nbsp;&nbsp;**T. Rowe Price Equity Series, Inc.** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fidelity® VIP Growth & Income Portfolio - Initial Class | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;T. Rowe Price All-Cap Opportunities Portfolio |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fidelity® VIP Growth Portfolio - Initial Class | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;T. Rowe Price Equity Income Portfolio |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fidelity® VIP High Income Portfolio - Service Class 2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;T. Rowe Price Mid-Cap Growth Portfolio |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fidelity® VIP Index 500 Portfolio - Initial Class | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;T. Rowe Price Moderate Allocation Portfolio |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fidelity® VIP Mid Cap Portfolio - Service Class 2 | &nbsp;&nbsp;&nbsp;**T. Rowe Price International Series, Inc.** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fidelity® VIP Overseas Portfolio - Initial Class | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;T. Rowe Price International Stock Portfolio |

---

**EquiTrust Life Variable Account II**

**Notes to Financial Statements (continued)**

(1) Subaccount was inactive during 2025 and 2024; accordingly, a Statement of Assets and Liabilities, a Statement
of Operations and a Statement of Changes in Net Assets have not been presented herein.

(2) Effective December 31, 2025, BNY Mellon Variable Investment Fund changed the name of BNY Mellon VIF
Opportunistic Small Cap Portfolio fund to BNY Mellon VIF Small Cap Portfolio.

**Investments**

Investments in shares of the Funds are stated at fair value, which is the closing net asset value per share as determined by the Funds. The first-in, first-out cost basis has been used in determining the net realized gain or loss from investment transactions and unrealized appreciation or depreciation on investments. Investment transactions are accounted for on the trade date.

At December 31, 2025, all valuation inputs used to determine the fair value of mutual fund shares owned by the Account were classified as Level 1 in accordance with accounting principles generally accepted in the United States of America. There were no transfers into or out of Level 3 during the year.

Dividends and realized capital gain distributions are taken into income on an accrual basis as of the ex-dividend date and are automatically reinvested in shares of the Funds on the payable date.

**Use of Estimates in the Preparation of Financial Statements**

The preparation of the Account's financial statements and accompanying notes in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported and disclosed. These estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed in the financial statements and accompanying notes.

**2. Expense Charges and Related Party Transactions**

**Paid to the Company**

The Account pays the Company certain amounts relating to the distribution and administration of the policies funded by the Account and as reimbursement for certain mortality and other risks assumed by the Company. The following summarizes those amounts.

*Mortality and Expense Risk Charges*: The Company deducts a daily mortality and expense risk charge from the Account at an effective annual rate of 0.90% of the average daily net asset value of the Account. These charges are assessed in return for the Company's assumption of risks associated with adverse mortality experience or excess administrative expenses in connection with policies issued.

*Premium Expense Charge*: Premiums paid by the policyholders are reduced by a 7% premium expense charge for flexible premium variable life insurance policies. (For any flexible premium variable life insurance policy issued prior to May 1, 2005, the premium expense charge is 7% of each premium up to the target premium, as defined in the prospectus, and 2% for each premium over the target premium.) Premiums paid by the policyholders are reduced by a 7% premium expense charge up to the target premium, as defined in the prospectus, and 2% for each premium over the target premium for flexible premium last survivor variable life insurance policies. The charge is used to compensate the Company for expenses incurred in connection with the distribution of the policies and for premium taxes imposed by various states and political subdivisions.

*Cost of Insurance and Policy Charges*: The Company assumes the responsibility for providing insurance benefits included in the policy. The cost of insurance is determined each month based upon the applicable insurance rate and current net amount

**EquiTrust Life Variable Account II**

**Notes to Financial Statements (continued)**

at risk. A policy expense charge of $7 and $10 for flexible premium variable life insurance policies and flexible premium last survivor variable life insurance policies, respectively, is deducted monthly for the administration of policies and the Account. (For any flexible premium variable life insurance policy purchased prior to May 1, 2005, a $5 expense charge is deducted monthly for administration of policies and the Account.) Flexible premium last survivor variable life insurance policies apply an additional monthly charge of $.03 per $1,000 of the Specified Amount (amount of insurance selected) for the administration of policies and the Account. During the first twelve policy months immediately following an increase in Specified Amount, a monthly charge of $.07 and $.10 for flexible premium variable life insurance policies and flexible premium last survivor variable life insurance policies, respectively, for every $1,000 of the Specified Amount or increase in the Specified Amount is deducted. (For any flexible premium variable life insurance policy purchased prior to May 1, 2005, a $.05 expense is charged per $1,000 of the Specified Amount or increase in the Specified Amount.)

*Other Charges*: A transfer charge of $25 may be imposed for the thirteenth and each subsequent transfer between subaccounts in any one policy year. In the event of a partial withdrawal, a fee equal to the lesser of $25 or 2% of the accumulated value withdrawn will be imposed. A surrender charge is applicable for all full policy surrenders or lapses in the first six and ten years for flexible premium variable life insurance policies and flexible premium last survivor variable life insurance policies, respectively, of the policy or following increases in the Specified Amount. This surrender charge varies based on age, sex, underwriting class and policy year as described in the Account's prospectus.

**3. Federal Income Taxes**

The operations of the Account are included in the federal income tax return of the Company, which is taxed as a life insurance company under the provisions of the Internal Revenue Code (IRC). Under the current provisions of the IRC, the Company does not expect to incur federal income taxes on the earnings of the Account to the extent the earnings are credited under the policies. Based on this, no charge is being made currently to the Account for federal income taxes. The Company will review periodically 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 policies.

**EquiTrust Life Variable Account II**

**Notes to Financial Statements (continued)**

**4. Purchases and Sales of Investment Securities**

The aggregate cost of investment securities purchased and proceeds from investment securities sold by subaccount were as follows during the year ended December 31, 2025:

---

| | | |
|:---|:---|:---|
| <br>**Subaccount** | **Cost of**<br>**Purchases** | **Proceeds**<br>**from Sales** |
| BNY Mellon Sustainable U.S. Equity Portfolio, Inc.: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;BNY Mellon Sustainable U.S. Equity Portfolio - Service Shares | $197 | $107 |
| BNY Mellon Variable Investment Fund: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;BNY Mellon VIF Appreciation Portfolio - Initial Shares | 469772 | 255370 |
| &nbsp;&nbsp;&nbsp;&nbsp;BNY Mellon VIF Growth & Income Portfolio - Initial Shares | 106820 | 88490 |
| &nbsp;&nbsp;&nbsp;&nbsp;BNY Mellon VIF Small Cap Portfolio - Initial Shares | 27675 | 166080 |
| Calvert Variable Trust, Inc.: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;CVT NASDAQ-100 Index Portfolio | 15394 | 8347 |
| &nbsp;&nbsp;&nbsp;&nbsp;CVT Russell 2000® Small Cap Index Portfolio | 24121 | 8826 |
| &nbsp;&nbsp;&nbsp;&nbsp;CVT S&P MidCap 400 Index Portfolio | 18736 | 10231 |
| Federated Hermes Insurance Series: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federated Hermes Government Money Fund II - Service Shares | 44930 | 54560 |
| &nbsp;&nbsp;&nbsp;&nbsp;Federated Hermes Managed Volatility Fund II - Primary Shares | 107487 | 156842 |
| &nbsp;&nbsp;&nbsp;&nbsp;Federated Hermes Quality Bond Fund II - Primary Shares | 36103 | 74835 |
| Fidelity® Variable Insurance Products Funds: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fidelity® VIP Contrafund® Portfolio - Initial Class | 341283 | 209344 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fidelity® VIP Growth & Income Portfolio - Initial Class | 26295 | 30263 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fidelity® VIP Growth Portfolio - Initial Class | 97085 | 71324 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fidelity® VIP High Income Portfolio - Service Class 2 | 7036 | 34699 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fidelity® VIP Index 500 Portfolio - Initial Class | 19614 | 20945 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fidelity® VIP Mid Cap Portfolio - Service Class 2 | 105201 | 88683 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fidelity® VIP Overseas Portfolio - Initial Class | 13254 | 3064 |
| Franklin Templeton Variable Insurance Products Trust: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Franklin Global Real Estate VIP Fund - Class 2 | 3399 | 6138 |
| &nbsp;&nbsp;&nbsp;&nbsp;Franklin Mutual Shares VIP Fund - Class 2 | 22063 | 35599 |
| &nbsp;&nbsp;&nbsp;&nbsp;Franklin Small Cap Value VIP Fund - Class 2 | 40058 | 43792 |
| &nbsp;&nbsp;&nbsp;&nbsp;Franklin Small-Mid Cap Growth VIP Fund - Class 2 | 13858 | 15478 |
| &nbsp;&nbsp;&nbsp;&nbsp;Franklin U.S. Government Securities VIP Fund - Class 2 | 7213 | 33792 |
| &nbsp;&nbsp;&nbsp;&nbsp;Templeton Growth VIP Fund - Class 2 | 30274 | 22031 |

---

**EquiTrust Life Variable Account II**

**Notes to Financial Statements (continued)**

---

| | | |
|:---|:---|:---|
| <br>**Subaccount** | **Cost of**<br>**Purchases** | **Proceeds**<br>**from Sales** |
| Lincoln Variable Insurance Products Trust: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;LVIP American Century Capital Appreciation Fund – Standard II | $16369 | $3464 |
| &nbsp;&nbsp;&nbsp;&nbsp;LVIP American Century Mid Cap Value Fund – Standard II | 6631 | 1993 |
| &nbsp;&nbsp;&nbsp;&nbsp;LVIP American Century Ultra Fund – Standard II | 15799 | 5316 |
| &nbsp;&nbsp;&nbsp;&nbsp;LVIP American Century Value Fund – Standard II | 6221 | 31981 |
| &nbsp;&nbsp;&nbsp;&nbsp;LVIP JPMorgan Mid Cap Value Fund - Standard | 56882 | 78068 |
| &nbsp;&nbsp;&nbsp;&nbsp;LVIP JPMorgan Small Cap Core Fund - Standard | 26453 | 17075 |
| T. Rowe Price Equity Series, Inc.: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;T. Rowe Price All-Cap Opportunities Portfolio | 189920 | 160582 |
| &nbsp;&nbsp;&nbsp;&nbsp;T. Rowe Price Equity Income Portfolio | 96824 | 45472 |
| &nbsp;&nbsp;&nbsp;&nbsp;T. Rowe Price Mid-Cap Growth Portfolio | 314512 | 269805 |
| &nbsp;&nbsp;&nbsp;&nbsp;T. Rowe Price Moderate Allocation Portfolio | 95510 | 100687 |
| T. Rowe Price International Series, Inc.: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;T. Rowe Price International Stock Portfolio | 71318 | 80984 |

---

**EquiTrust Life Variable Account II**

**Notes to Financial Statements (continued)**

**5. Summary of Changes from Unit Transactions**

Transactions in units of each subaccount were as follows for the periods ended December 31, 2025 and 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Period Ended December 31,** | **Period Ended December 31,** | **Period Ended December 31,** | **Period Ended December 31,** | **Period Ended December 31,** | **Period Ended December 31,** |
| | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| <br>**Subaccount** |<br>**Purchased** |<br>**Redeemed** | **Net**<br>**Increase**<br>**(Decrease)** |<br>**Purchased** |<br>**Redeemed** | **Net**<br>**Increase**<br>**(Decrease)** |
| BNY Mellon Sustainable U.S. Equity Portfolio, Inc.: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;BNY Mellon Sustainable U.S. Equity Portfolio - Service Shares | **1** | **2** | **(1)** | 1 | 2 | (1) |
| BNY Mellon Variable Investment Fund: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;BNY Mellon VIF Appreciation Portfolio - Initial Shares | **453** | **4394** | **(3941)** | 568 | 3180 | (2612) |
| &nbsp;&nbsp;&nbsp;&nbsp;BNY Mellon VIF Growth & Income Portfolio - Initial Shares | **121** | **1295** | **(1174)** | 254 | 894 | (640) |
| &nbsp;&nbsp;&nbsp;&nbsp;BNY Mellon VIF Small Cap Portfolio - Initial Shares | **616** | **4339** | **(3723)** | 795 | 2656 | (1861) |
| Calvert Variable Trust, Inc.: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;CVT NASDAQ-100 Index Portfolio | **76** | **45** | **31** | 15 | 34 | (19) |
| &nbsp;&nbsp;&nbsp;&nbsp;CVT Russell 2000® Small Cap Index Portfolio | **218** | **155** | **63** | 98 | 564 | (466) |
| &nbsp;&nbsp;&nbsp;&nbsp;CVT S&P MidCap 400 Index Portfolio | **52** | **132** | **(80)** | 85 | 360 | (275) |
| Federated Hermes Insurance Series: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federated Hermes Government Money Fund II - Service Shares | **2237** | **4960** | **(2723)** | 2811 | 4668 | (1857) |
| &nbsp;&nbsp;&nbsp;&nbsp;Federated Hermes Managed Volatility Fund II - Primary Shares | **1753** | **6966** | **(5213)** | 2255 | 4134 | (1879) |
| &nbsp;&nbsp;&nbsp;&nbsp;Federated Hermes Quality Bond Fund II - Primary Shares | **1468** | **5481** | **(4013)** | 1674 | 2253 | (579) |
| Fidelity® Variable Insurance Products Funds: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fidelity® VIP Contrafund® Portfolio - Initial Class | **251** | **1948** | **(1697)** | 458 | 973 | (515) |
| &nbsp;&nbsp;&nbsp;&nbsp;Fidelity® VIP Growth & Income Portfolio - Initial Class | **198** | **490** | **(292)** | 404 | 523 | (119) |
| &nbsp;&nbsp;&nbsp;&nbsp;Fidelity® VIP Growth Portfolio - Initial Class | **103** | **794** | **(691)** | 573 | 383 | 190 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fidelity® VIP High Income Portfolio - Service Class 2 | **59** | **1064** | **(1005)** | 101 | 68 | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fidelity® VIP Index 500 Portfolio - Initial Class | **113** | **227** | **(114)** | 560 | 720 | (160) |
| &nbsp;&nbsp;&nbsp;&nbsp;Fidelity® VIP Mid Cap Portfolio - Service Class 2 | **299** | **1095** | **(796)** | 235 | 795 | (560) |
| &nbsp;&nbsp;&nbsp;&nbsp;Fidelity® VIP Overseas Portfolio - Initial Class | **80** | **72** | **8** | 275 | 77 | 198 |
| Franklin Templeton Variable Insurance Products Trust: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Franklin Global Real Estate VIP Fund - Class 2 | **168** | **342** | **(174)** | 187 | 949 | (762) |
| &nbsp;&nbsp;&nbsp;&nbsp;Franklin Mutual Shares VIP Fund - Class 2 | **142** | **949** | **(807)** | 161 | 107 | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;Franklin Small Cap Value VIP Fund - Class 2 | **218** | **677** | **(459)** | 168 | 398 | (230) |
| &nbsp;&nbsp;&nbsp;&nbsp;Franklin Small-Mid Cap Growth VIP Fund - Class 2 | **51** | **277** | **(226)** | 60 | 265 | (205) |
| &nbsp;&nbsp;&nbsp;&nbsp;Franklin U.S. Government Securities VIP Fund - Class 2 | **197** | **2252** | **(2055)** | 221 | 261 | (40) |
| &nbsp;&nbsp;&nbsp;&nbsp;Templeton Growth VIP Fund - Class 2 | **567** | **801** | **(234)** | 309 | 1130 | (821) |

---

**EquiTrust Life Variable Account II**

**Notes to Financial Statements (continued)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Period Ended December 31,** | **Period Ended December 31,** | **Period Ended December 31,** | **Period Ended December 31,** | **Period Ended December 31,** | **Period Ended December 31,** |
| | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| <br>**Subaccount** |<br>**Purchased** |<br>**Redeemed** | **Net**<br>**Increase**<br>**(Decrease)** |<br>**Purchased** |<br>**Redeemed** | **Net**<br>**Increase**<br>**(Decrease)** |
| Lincoln Variable Insurance Products Trust: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;LVIP American Century Capital Appreciation Fund – Standard II | **45** | **46** | **(1)** | 52 | 47 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;LVIP American Century Mid Cap Value Fund – Standard II | **12** | **40** | **(28)** | 15 | 42 | (27) |
| &nbsp;&nbsp;&nbsp;&nbsp;LVIP American Century Ultra Fund – Standard II | **22** | **51** | **(29)** | 36 | 191 | (155) |
| &nbsp;&nbsp;&nbsp;&nbsp;LVIP American Century Value Fund – Standard II | **47** | **962** | **(915)** | 61 | 52 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;LVIP JPMorgan Mid Cap Value Fund - Standard | **98** | **996** | **(898)** | 102 | 173 | (71) |
| &nbsp;&nbsp;&nbsp;&nbsp;LVIP JPMorgan Small Cap Core Fund - Standard | **118** | **351** | **(233)** | 113 | 275 | (162) |
| T. Rowe Price Equity Series, Inc.: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;T. Rowe Price All-Cap Opportunities Portfolio | **139** | **1777** | **(1638)** | 129 | 871 | (742) |
| &nbsp;&nbsp;&nbsp;&nbsp;T. Rowe Price Equity Income Portfolio | **121** | **746** | **(625)** | 195 | 1059 | (864) |
| &nbsp;&nbsp;&nbsp;&nbsp;T. Rowe Price Mid-Cap Growth Portfolio | **217** | **2526** | **(2309)** | 177 | 1071 | (894) |
| &nbsp;&nbsp;&nbsp;&nbsp;T. Rowe Price Moderate Allocation Portfolio | **461** | **2117** | **(1656)** | 528 | 1504 | (976) |
| T. Rowe Price International Series, Inc.: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;T. Rowe Price International Stock Portfolio | **1245** | **3061** | **(1816)** | 457 | 570 | (113) |

---

**EquiTrust Life Variable Account II**

**Notes to Financial Statements (continued)**

**6. Unit Values**

The following summarizes units outstanding, unit values, and net assets at December 31, 2025, 2024, 2023, 2022 and 2021, and investment income ratios, expense ratios, and total return ratios for the periods then ended:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of December 31** | **As of December 31** | **As of December 31** | **As of December 31** | | | |
| <br>**Subaccount** | **Units** | **Units** | **Unit**<br>**Value** | <br>**Net Assets** | **Investment**<br>**Income**<br>**Ratio (A)** | <br>**Expense**<br>**Ratio (B)** | <br>**Total**<br>**Return (C)** |
| BNY Mellon Sustainable U.S. Equity Portfolio - Service Shares: | BNY Mellon Sustainable U.S. Equity Portfolio - Service Shares: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 37 | $56.27 | $2071 | 0.05% | 0.90% | 14.53% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 38 | 49.13 | 1858 | 0.40 | 0.90 | 23.35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 39 | 39.83 | 1544 | 0.50 | 0.90 | 22.29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 40 | 32.57 | 1293 | 0.28 | 0.90 | (23.81) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 41 | 42.75 | 1732 | 0.66 | 0.90 | 25.51 |
| BNY Mellon VIF Appreciation Portfolio - Initial Shares: | BNY Mellon VIF Appreciation Portfolio - Initial Shares: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 51943 | 57.27 | 2974635 | 0.37 | 0.90 | 9.11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 55884 | 52.49 | 2933595 | 0.42 | 0.90 | 11.78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 58496 | 46.96 | 2746795 | 0.72 | 0.90 | 19.89 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 60887 | 39.17 | 2384685 | 0.67 | 0.90 | (18.78) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 63785 | 48.23 | 3076379 | 0.44 | 0.90 | 25.99 |
| BNY Mellon VIF Growth & Income Portfolio - Initial Shares: | BNY Mellon VIF Growth & Income Portfolio - Initial Shares: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 19385 | 67.10 | 1300783 | 0.45 | 0.90 | 15.79 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 20559 | 57.95 | 1191397 | 0.54 | 0.90 | 21.62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 21199 | 47.65 | 1010112 | 0.66 | 0.90 | 25.56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 21719 | 37.95 | 824220 | 0.80 | 0.90 | (15.57) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 22374 | 44.95 | 1005705 | 0.47 | 0.90 | 24.52 |
| BNY Mellon VIF Small Cap Portfolio - Initial Shares: | BNY Mellon VIF Small Cap Portfolio - Initial Shares: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 35084 | 39.51 | 1386070 | 0.68 | 0.90 | 9.99 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 38807 | 35.92 | 1393800 | 0.68 | 0.90 | 3.70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 40668 | 34.64 | 1408856 | 0.33 | 0.90 | 8.28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 41526 | 31.99 | 1328198 |  | 0.90 | (17.36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 46557 | 38.71 | 1802021 | 0.11 | 0.90 | 15.45 |
| CVT NASDAQ-100 Index Portfolio: | CVT NASDAQ-100 Index Portfolio: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 1266 | 172.27 | 218073 | 0.28 | 0.90 | 19.32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 1235 | 144.38 | 178314 | 0.34 | 0.90 | 24.08 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 1254 | 116.36 | 145902 | 0.34 | 0.90 | 53.02 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 1272 | 76.04 | 96723 | 0.19 | 0.90 | (33.24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 1252 | 113.90 | 142619 | 0.30 | 0.90 | 25.75 |
| CVT Russell 2000® Small Cap Index Portfolio: | CVT Russell 2000® Small Cap Index Portfolio: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 4244 | 53.26 | 226068 | 1.60 | 0.90 | 11.45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 4181 | 47.79 | 199814 | 1.21 | 0.90 | 10.22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 4647 | 43.36 | 201484 | 0.90 | 0.90 | 15.57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 4663 | 37.52 | 174953 | 0.83 | 0.90 | (21.23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 4733 | 47.63 | 225415 | 0.75 | 0.90 | 13.51 |
| CVT S&P MidCap 400 Index Portfolio: | CVT S&P MidCap 400 Index Portfolio: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 2915 | 72.58 | 211531 | 1.10 | 0.90 | 6.19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 2995 | 68.35 | 204732 | 1.18 | 0.90 | 12.49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 3270 | 60.76 | 198707 | 1.24 | 0.90 | 15.10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 3314 | 52.79 | 174943 | 0.94 | 0.90 | (14.11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 3394 | 61.46 | 208632 | 0.85 | 0.90 | 23.31 |

---

**EquiTrust Life Variable Account II**

**Notes to Financial Statements (continued)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of December 31** | **As of December 31** | **As of December 31** | **As of December 31** | | | |
| <br>**Subaccount** | **Units** | **Units** | **Unit**<br>**Value** | <br>**Net Assets** | **Investment**<br>**Income**<br>**Ratio (A)** | <br>**Expense**<br>**Ratio (B)** | <br>**Total**<br>**Return (C)** |
| Federated Hermes Government Money Fund II - Service Shares: | Federated Hermes Government Money Fund II - Service Shares: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 63142 | $10.43 | $658701 | 3.67% | 0.90% | 2.76% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 65865 | 10.15 | 668331 | 4.58 | 0.90 | 3.78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 67722 | 9.78 | 662440 | 4.43 | 0.90 | 3.60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 69629 | 9.44 | 657487 | 1.15 | 0.90 | 0.21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 69827 | 9.42 | 657662 |  | 0.90 | (0.84) |
| Federated Hermes Managed Volatility Fund II - Primary Shares: | Federated Hermes Managed Volatility Fund II - Primary Shares: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 72523 | 22.64 | 1642147 | 2.92 | 0.90 | 6.04 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 77736 | 21.35 | 1659308 | 2.18 | 0.90 | 14.54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 79615 | 18.64 | 1483977 | 1.87 | 0.90 | 7.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 81734 | 17.30 | 1414348 | 1.89 | 0.90 | (14.53) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 85535 | 20.24 | 1731601 | 1.77 | 0.90 | 17.40 |
| Federated Hermes Quality Bond Fund II - Primary Shares: | Federated Hermes Quality Bond Fund II - Primary Shares: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 40327 | 13.35 | 538217 | 3.38 | 0.90 | 6.12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 44340 | 12.58 | 557603 | 2.94 | 0.90 | 2.95 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 44919 | 12.22 | 548690 | 2.65 | 0.90 | 5.25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 46577 | 11.61 | 540860 | 2.63 | 0.90 | (10.07) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 49532 | 12.91 | 639672 | 2.45 | 0.90 | (2.27) |
| Fidelity® VIP Contrafund® Portfolio - Initial Class: | Fidelity® VIP Contrafund® Portfolio - Initial Class: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 18682 | 113.38 | 2118260 | 0.14 | 0.90 | 20.40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 20379 | 94.17 | 1919207 | 0.19 | 0.90 | 32.58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 20894 | 71.03 | 1484041 | 0.50 | 0.90 | 32.27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 21623 | 53.70 | 1161139 | 0.49 | 0.90 | (26.97) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 23483 | 73.53 | 1726766 | 0.06 | 0.90 | 26.69 |
| Fidelity® VIP Growth & Income Portfolio - Initial Class: | Fidelity® VIP Growth & Income Portfolio - Initial Class: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 2311 | 64.61 | 149297 | 1.50 | 0.90 | 20.43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 2603 | 53.65 | 139637 | 1.42 | 0.90 | 21.11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 2722 | 44.30 | 120561 | 1.70 | 0.90 | 17.66 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 2755 | 37.65 | 103708 | 1.62 | 0.90 | (5.78) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 3054 | 39.96 | 122037 | 2.43 | 0.90 | 24.84 |
| Fidelity® VIP Growth Portfolio - Initial Class: | Fidelity® VIP Growth Portfolio - Initial Class: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 8097 | 88.82 | 719217 | 0.28 | 0.90 | 13.87 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 8788 | 78.00 | 685485 |  | 0.90 | 29.22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 8598 | 60.36 | 518977 | 0.13 | 0.90 | 35.03 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 9217 | 44.70 | 412041 | 0.63 | 0.90 | (25.14) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 12428 | 59.71 | 742066 |  | 0.90 | 22.13 |
| Fidelity® VIP High Income Portfolio - Service Class 2: | Fidelity® VIP High Income Portfolio - Service Class 2: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 2496 | 33.21 | 82883 | 5.54 | 0.90 | 9.35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 3501 | 30.37 | 106354 | 6.36 | 0.90 | 7.62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 3468 | 28.22 | 97868 | 5.84 | 0.90 | 9.25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 3411 | 25.83 | 88099 | 5.18 | 0.90 | (12.44) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 3416 | 29.50 | 100776 | 5.44 | 0.90 | 3.36 |
| Fidelity® VIP Index 500 Portfolio - Initial Class: | Fidelity® VIP Index 500 Portfolio - Initial Class: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 11728 | 75.68 | 887539 | 1.17 | 0.90 | 16.74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 11842 | 64.83 | 767727 | 1.30 | 0.90 | 23.77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 12002 | 52.38 | 628631 | 1.49 | 0.90 | 25.07 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 12186 | 41.88 | 510344 | 1.47 | 0.90 | (18.95) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 12288 | 51.67 | 634880 | 1.27 | 0.90 | 27.45 |

---

**EquiTrust Life Variable Account II**

**Notes to Financial Statements (continued)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **As of December 31** | **As of December 31** | **As of December 31** | | | |
| <br>**Subaccount** | <br>**Units** | **Unit**<br>**Value** | <br>**Net Assets** | **Investment**<br>**Income**<br>**Ratio (A)** | <br>**Expense**<br>**Ratio (B)** | <br>**Total**<br>**Return (C)** |
| Fidelity® VIP Mid Cap Portfolio - Service Class 2: | Fidelity® VIP Mid Cap Portfolio - Service Class 2: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | 8694 | $83.59 | $726786 | 0.24% | 0.90% | 10.50% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 | 9490 | 75.65 | 717995 | 0.34 | 0.90 | 16.12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 | 10050 | 65.15 | 654761 | 0.38 | 0.90 | 13.78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 | 10596 | 57.26 | 606730 | 0.27 | 0.90 | (15.72) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 | 11071 | 67.94 | 752216 | 0.36 | 0.90 | 24.18 |
| Fidelity® VIP Overseas Portfolio - Initial Class: | Fidelity® VIP Overseas Portfolio - Initial Class: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | 2944 | 36.02 | 106040 | 1.63 | 0.90 | 19.35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 | 2936 | 30.18 | 88630 | 1.66 | 0.90 | 4.10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 | 2738 | 28.99 | 79386 | 0.99 | 0.90 | 19.40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 | 3082 | 24.28 | 74824 | 1.09 | 0.90 | (25.15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 | 3073 | 32.44 | 99667 | 0.52 | 0.90 | 18.65 |
| Franklin Global Real Estate VIP Fund - Class 2: | Franklin Global Real Estate VIP Fund - Class 2: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | 2319 | 17.79 | 41253 | 1.38 | 0.90 | 6.98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 | 2493 | 16.63 | 41458 | 1.74 | 0.90 | (1.19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 | 3255 | 16.83 | 54793 | 2.86 | 0.90 | 10.43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 | 3135 | 15.24 | 47786 | 2.39 | 0.90 | (26.73) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 | 3048 | 20.80 | 63392 | 0.88 | 0.90 | 25.68 |
| Franklin Mutual Shares VIP Fund - Class 2: | Franklin Mutual Shares VIP Fund - Class 2: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | 3934 | 38.22 | 150377 | 1.84 | 0.90 | 10.53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 | 4741 | 34.58 | 163955 | 2.02 | 0.90 | 10.27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 | 4687 | 31.36 | 147004 | 1.90 | 0.90 | 12.44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 | 4670 | 27.89 | 130234 | 1.86 | 0.90 | (8.26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 | 4750 | 30.40 | 144396 | 2.91 | 0.90 | 18.10 |
| Franklin Small Cap Value VIP Fund - Class 2: | Franklin Small Cap Value VIP Fund - Class 2: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | 4373 | 67.27 | 294167 | 1.10 | 0.90 | 6.69 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 | 4832 | 63.05 | 304681 | 0.94 | 0.90 | 10.69 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 | 5062 | 56.96 | 288288 | 0.53 | 0.90 | 11.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 | 5298 | 50.97 | 270065 | 0.99 | 0.90 | (10.86) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 | 5627 | 57.18 | 321796 | 1.00 | 0.90 | 24.25 |
| Franklin Small-Mid Cap Growth VIP Fund - Class 2: | Franklin Small-Mid Cap Growth VIP Fund - Class 2: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | 4026 | 49.89 | 200851 |  | 0.90 | 1.61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 | 4252 | 49.10 | 208757 |  | 0.90 | 10.04 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 | 4457 | 44.62 | 198869 |  | 0.90 | 25.62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 | 4466 | 35.52 | 158661 |  | 0.90 | (34.30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 | 4631 | 54.06 | 250351 |  | 0.90 | 9.04 |
| Franklin U.S. Government Securities VIP Fund - Class 2: | Franklin U.S. Government Securities VIP Fund - Class 2: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | 7667 | 14.98 | 114819 | 3.58 | 0.90 | 5.79 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 | 9722 | 14.16 | 137682 | 3.04 | 0.90 | 0.43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 | 9762 | 14.10 | 137617 | 2.72 | 0.90 | 3.52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 | 9804 | 13.62 | 133494 | 2.35 | 0.90 | (10.51) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 | 9931 | 15.22 | 151186 | 2.55 | 0.90 | (2.75) |
| Templeton Growth VIP Fund - Class 2: | Templeton Growth VIP Fund - Class 2: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | 7088 | 29.18 | 206858 | 0.88 | 0.90 | 22.71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 | 7322 | 23.78 | 174124 | 0.96 | 0.90 | 4.44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 | 8143 | 22.77 | 185390 | 3.33 | 0.90 | 19.97 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 | 8158 | 18.98 | 154846 | 0.16 | 0.90 | (12.29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 | 8028 | 21.64 | 173737 | 1.10 | 0.90 | 3.94 |

---

**EquiTrust Life Variable Account II**

**Notes to Financial Statements (continued)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of December 31** | **As of December 31** | **As of December 31** | **As of December 31** | | | |
| <br>**Subaccount** | **Units** | **Units** | **Unit**<br>**Value** | <br>**Net Assets** | **Investment**<br>**Income**<br>**Ratio (A)** | <br>**Expense**<br>**Ratio (B)** | <br>**Total**<br>**Return (C)** |
| LVIP American Century Capital Appreciation Fund – Standard II: | LVIP American Century Capital Appreciation Fund – Standard II: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 1345 | $63.46 | $85347 | -% | 0.90% | 5.77% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 1346 | 60.00 | 80749 |  | 0.90 | 23.86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 1341 | 48.44 | 64953 |  | 0.90 | 19.60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 1368 | 40.50 | 55417 |  | 0.90 | (28.75) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 1448 | 56.84 | 82321 |  | 0.90 | 10.16 |
| LVIP American Century Mid Cap Value Fund – Standard II: | LVIP American Century Mid Cap Value Fund – Standard II: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 1638 | 38.13 | 62472 | 1.93 | 0.90 | 8.02 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 1666 | 35.30 | 58797 | 2.57 | 0.90 | 7.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 1693 | 32.76 | 55482 | 2.32 | 0.90 | 5.17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 1729 | 31.15 | 53857 | 2.25 | 0.90 | (2.07) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 1792 | 31.81 | 56991 | 1.17 | 0.90 | 22.11 |
| LVIP American Century Ultra Fund – Standard II: | LVIP American Century Ultra Fund – Standard II: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 2071 | 87.58 | 181376 |  | 0.90 | 11.84 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 2100 | 78.31 | 164481 |  | 0.90 | 27.64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 2255 | 61.35 | 138372 |  | 0.90 | 42.21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 2305 | 43.14 | 99428 |  | 0.90 | (32.97) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 2312 | 64.36 | 148809 |  | 0.90 | 22.06 |
| LVIP American Century Value Fund – Standard II: | LVIP American Century Value Fund – Standard II: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 1595 | 34.86 | 55601 | 1.25 | 0.90 | 14.97 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 2510 | 30.32 | 76100 | 2.97 | 0.90 | 8.48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 2501 | 27.95 | 69901 | 2.39 | 0.90 | 8.12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 2520 | 25.85 | 65125 | 2.04 | 0.90 | (0.35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 2891 | 25.94 | 74984 | 1.74 | 0.90 | 23.41 |
| LVIP JPMorgan Mid Cap Value Fund - Standard: | LVIP JPMorgan Mid Cap Value Fund - Standard: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 5481 | 78.70 | 431308 | 1.07 | 0.90 | 3.78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 6379 | 75.83 | 483723 | 1.27 | 0.90 | 13.26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 6450 | 66.95 | 431820 | 3.19 | 0.90 | 9.92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 6516 | 60.91 | 396847 | 0.96 | 0.90 | (8.97) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 6919 | 66.91 | 462954 | 0.90 | 0.90 | 28.72 |
| LVIP JPMorgan Small Cap Core Fund - Standard: | LVIP JPMorgan Small Cap Core Fund - Standard: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 5163 | 51.63 | 266566 | 0.64 | 0.90 | 9.29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 5396 | 47.24 | 254935 | 0.80 | 0.90 | 10.68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 5558 | 42.68 | 237213 | 1.37 | 0.90 | 12.11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 5650 | 38.07 | 215089 | 0.46 | 0.90 | (20.07) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 5992 | 47.63 | 285396 | 0.51 | 0.90 | 20.31 |
| T. Rowe Price All-Cap Opportunities Portfolio: | T. Rowe Price All-Cap Opportunities Portfolio: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 18214 | 90.65 | 1650984 |  | 0.90 | 15.27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 19852 | 78.64 | 1561126 | 0.07 | 0.90 | 24.04 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 20594 | 63.40 | 1305705 | 0.25 | 0.90 | 27.82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 21220 | 49.60 | 1052568 |  | 0.90 | (22.22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 22459 | 63.77 | 1432122 |  | 0.90 | 19.73 |
| T. Rowe Price Equity Income Portfolio: | T. Rowe Price Equity Income Portfolio: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 14355 | 57.91 | 831308 | 1.65 | 0.90 | 13.35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 14980 | 51.09 | 765372 | 1.83 | 0.90 | 10.68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 15844 | 46.16 | 731277 | 2.10 | 0.90 | 8.59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 16612 | 42.51 | 706232 | 1.87 | 0.90 | (4.21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 17497 | 44.38 | 776488 | 1.57 | 0.90 | 24.45 |

---

**EquiTrust Life Variable Account II**

**Notes to Financial Statements (continued)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of December 31** | **As of December 31** | **As of December 31** | **As of December 31** | | | |
| <br>**Subaccount** | **Units** | **Units** | **Unit**<br>**Value** | <br>**Net Assets** | **Investment**<br>**Income**<br>**Ratio (A)** | <br>**Expense**<br>**Ratio (B)** | <br>**Total**<br>**Return (C)** |
| T. Rowe Price Mid-Cap Growth Portfolio: | T. Rowe Price Mid-Cap Growth Portfolio: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 22755 | $103.26 | $2349656 | -% | 0.90% | 2.62% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 25064 | 100.62 | 2521920 |  | 0.90 | 8.33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 25958 | 92.88 | 2410888 |  | 0.90 | 18.89 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 27080 | 78.12 | 2115485 |  | 0.90 | (23.27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 28875 | 101.81 | 2939789 |  | 0.90 | 13.83 |
| T. Rowe Price Moderate Allocation Portfolio: | T. Rowe Price Moderate Allocation Portfolio: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 25378 | 47.83 | 1213772 | 2.26 | 0.90 | 13.48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 27034 | 42.15 | 1139353 | 2.30 | 0.90 | 9.08 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 28010 | 38.64 | 1082346 | 2.32 | 0.90 | 14.32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 28556 | 33.80 | 965181 | 1.55 | 0.90 | (19.04) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 30168 | 41.75 | 1259523 | 0.98 | 0.90 | 9.09 |
| T. Rowe Price International Stock Portfolio: | T. Rowe Price International Stock Portfolio: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 |  | 14861 | 26.79 | 398136 | 1.87 | 0.90 | 17.35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  | 16677 | 22.83 | 380724 | 0.95 | 0.90 | 2.33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 16790 | 22.31 | 374582 | 1.00 | 0.90 | 15.18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 |  | 17429 | 19.37 | 337522 | 0.80 | 0.90 | (16.54) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |  | 16756 | 23.21 | 388914 | 0.59 | 0.90 | 0.43 |

---

**EquiTrust Life Variable Account II**

**Notes to Financial Statements (continued)**

(A) These ratios represent the dividends, excluding distributions of capital gains, received by the subaccount from the underlying mutual
fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such
as mortality and expense charges, that result in direct reductions in the unit values. The recognition of investment income by the subaccount
is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest.

(B) These ratios represent the annualized policy expenses of the separate account, consisting of mortality and expense risk charges, for
the period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to
policy owner accounts through the redemption of units and expenses of the underlying fund are excluded.

(C) These ratios represent the total return for the period indicated, 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 in the calculation would result in a reduction in the total return presented.

**7. Segment Reporting**

Each subaccount, as detailed in Note 1, represents a single operating segment. The Chief Operating Officer of the Company acts as the Chief Operating Decision Maker (CODM) and monitors the operating results of each subaccount. The change in net assets resulting from operations, which is used by the CODM to assess the subaccount's performance, is consistent with that presented within the subaccount's financial statements. Subaccount assets are reflected on the accompanying Statement of Assets and Liabilities and significant segment expenses are listed on the accompanying Statement of Operations.

---

| | |
|:---|:---|
| ![](tm262349d11_etlicfinimg001.jpg) |  |
|  | KPMG LLP |
|  | Aon Center |
|  | Suite 5500<br> 200 E. Randolph Street |
|  | Chicago, IL 60601-6436 |

---

**Independent Auditors' Report**

The Audit Committee of the Board of Directors

EquiTrust Life Insurance Company:

*Opinions*

We have audited the financial statements of EquiTrust Life Insurance Company (the Company), which comprise the statutory statements of admitted assets, liabilities, and capital and surplus as of December 31, 2025 and 2024, and the related statutory statements of operations, changes in capital and surplus, and cash flow for the years then ended, and the related notes to the financial statements.

*Unmodified Opinion on Statutory Basis of Accounting*

In our opinion, the accompanying financial statements present fairly, in all material respects, the admitted assets, liabilities, and capital and surplus of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flow for the years then ended in accordance with accounting practices prescribed or permitted by the Arizona Department of Insurance and Financial Institutions described in Note 2.

*Adverse Opinion on U.S. Generally Accepted Accounting Principles*

In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles section of our report, the financial statements do not present fairly, in accordance with U.S. generally accepted accounting principles, the financial position of the Company as of December 31, 2025 and 2024, or the results of its operations or its cash flows for the years then ended.

*Basis for Opinions*

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

*Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles*

As described in Note 2 to the financial statements, the financial statements are prepared by the Company using accounting practices prescribed or permitted by the Arizona Department of Insurance and Financial Institutions, which is a basis of accounting other than U.S. generally accepted accounting principles. Accordingly, the financial statements are not intended to be presented in accordance with U.S. generally accepted accounting principles. The effects on the financial statements of the variances between the statutory accounting practices described in Note 2 and U.S. generally accepted accounting principles, although not reasonably determinable, are presumed to be material and pervasive.

*Emphasis of Matter*

As discussed in Note 2(n) to the financial statements, the Company received permission from the Arizona Department of Insurance and Financial Institutions in 2022 to account for derivatives used for indexed interest crediting hedging purposes at amortized cost with amortization expense and realized gains recorded through

KPMG LLP, a Delaware limited liability partnership, and its subsidiaries are part of<br> the KPMG global organization of independent member firms affiliated with KPMG<br> International Limited, a private English company limited by guarantee.

![](tm262349d11_etlicfinimg002.jpg)

net investment income. Under prescribed statutory accounting practices, the derivatives would be accounted for at fair value with changes in fair value being recognized in capital and surplus and realized gains or losses being recognized in net realized gains or losses. Also under the permitted practice, the Company calculates indexed reserves assuming the derivatives associated with the current interest crediting period have zero market value. Under prescribed statutory accounting practices, the derivatives associated with the current interest crediting period have a market value consistent with the derivatives used for indexed interest crediting hedging purposes. As of December 31, 2025 and 2024, the permitted accounting practice decreased statutory surplus below what it would have been had prescribed accounting practices been followed. Our opinions are not modified with respect to this matter.

*Responsibilities of Management for the Financial Statements*

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting practices prescribed or permitted by the Arizona Department of Insurance and Financial Institutions. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date that the financial statements are issued.

*Auditors' Responsibilities for the Audit of the Financial Statements*

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

● Exercise professional judgment and maintain professional skepticism throughout the audit.

● Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.

● Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

![](tm262349d11_etlicfinimg002.jpg)

● Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

*Supplementary Information*

Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The supplementary information included in the supplemental schedule of assets and liabilities, summary investment schedule, supplemental investment risk interrogatories, and reinsurance risk interrogatories is presented for purposes of additional analysis and is not a required part of the financial statements but is supplementary information required by the Arizona Department of Insurance and Financial Institutions. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audits of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

/s/ KPMG LLP

Chicago, Illinois

April 17, 2026

**EQUITRUST LIFE INSURANCE COMPANY**

Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus<br> Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| **Admitted Assets** |  |  |
| Bonds | $&nbsp;&nbsp;26344251 | $&nbsp;&nbsp;22379427 |
| Preferred stock | &nbsp;&nbsp;156264 | &nbsp;&nbsp;171642 |
| Common stock, at fair value (cost of $274,856 in 2025 and cost of $244,779 in 2024) | &nbsp;&nbsp;264718 | &nbsp;&nbsp;232672 |
| Mortgage loans | &nbsp;&nbsp;4284430 | &nbsp;&nbsp;3911417 |
| Real estate | &nbsp;&nbsp;46075 | &nbsp;&nbsp;25800 |
| Cash, cash equivalents and short-term investments | &nbsp;&nbsp;3376357 | &nbsp;&nbsp;3884769 |
| Contract loans | &nbsp;&nbsp;6735 | &nbsp;&nbsp;6705 |
| Derivative instruments | &nbsp;&nbsp;168578 | &nbsp;&nbsp;181744 |
| Other invested assets | &nbsp;&nbsp;1174440 | &nbsp;&nbsp;1163900 |
| Receivables for securities | &nbsp;&nbsp;140382 | &nbsp;&nbsp;30562 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cash and invested assets | $&nbsp;&nbsp;35962230 | $&nbsp;&nbsp;31988638 |
| Investment income due and accrued | &nbsp;&nbsp;737069 | &nbsp;&nbsp;611100 |
| Premiums and considerations - uncollected | &nbsp;&nbsp;59 | &nbsp;&nbsp;- |
| Amounts recoverable under reinsurance agreements | &nbsp;&nbsp;19246 | &nbsp;&nbsp;25438 |
| Assumed coinsurance funds withheld | &nbsp;&nbsp;- | &nbsp;&nbsp;67 |
| Current federal income tax receivable | &nbsp;&nbsp;68844 | &nbsp;&nbsp;32450 |
| Deferred income tax assets | &nbsp;&nbsp;78459 | &nbsp;&nbsp;18055 |
| Receivables from parent, subsidiaries and affiliates | &nbsp;&nbsp;- | &nbsp;&nbsp;11 |
| Other admitted assets | &nbsp;&nbsp;908 | &nbsp;&nbsp;386 |
| Assets held in separate accounts | &nbsp;&nbsp;915699 | &nbsp;&nbsp;900578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total admitted assets | $&nbsp;&nbsp;37782514 | $&nbsp;&nbsp;33576723 |
| **Liabilities, Capital and Surplus** |  |  |
| Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Life and annuity policy reserves | &nbsp;&nbsp;24850620 | &nbsp;&nbsp;22189819 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liability for deposit-type contracts | &nbsp;&nbsp;5890536 | &nbsp;&nbsp;4826432 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Policy and contract claims | &nbsp;&nbsp;120452 | &nbsp;&nbsp;112820 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest maintenance reserve | &nbsp;&nbsp;19658 | &nbsp;&nbsp;28752 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount payable under reinsurance agreements | &nbsp;&nbsp;172653 | &nbsp;&nbsp;71048 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commissions to agents due and accrued | &nbsp;&nbsp;12571 | &nbsp;&nbsp;20038 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payable to affiliates | &nbsp;&nbsp;5034 | &nbsp;&nbsp;6759 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ceded coinsurance funds withheld | &nbsp;&nbsp;1826636 | &nbsp;&nbsp;1772244 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative liability | &nbsp;&nbsp;369390 | &nbsp;&nbsp;323850 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payable for securities | &nbsp;&nbsp;121715 | &nbsp;&nbsp;98175 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan payable | &nbsp;&nbsp;161 | &nbsp;&nbsp;852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowed money | &nbsp;&nbsp;- | &nbsp;&nbsp;75000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset valuation reserve | &nbsp;&nbsp;326935 | &nbsp;&nbsp;297056 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | &nbsp;&nbsp;91072 | &nbsp;&nbsp;96926 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liabilities related to separate accounts | &nbsp;&nbsp;915699 | &nbsp;&nbsp;900578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $&nbsp;&nbsp;34723132 | $&nbsp;&nbsp;30820349 |
| Capital and surplus: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, par value $1,500 per share – authorized 2,500 shares; issued and outstanding 2,000 shares | &nbsp;&nbsp;3000 | &nbsp;&nbsp;3000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | &nbsp;&nbsp;784667 | &nbsp;&nbsp;784667 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unassigned funds | &nbsp;&nbsp;2271715 | &nbsp;&nbsp;1968707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total capital and surplus | &nbsp;&nbsp;3059382 | &nbsp;&nbsp;2756374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities, capital and surplus | $&nbsp;&nbsp;37782514 | $&nbsp;&nbsp;33576723 |

---

See accompanying notes to statutory financial statements

**EQUITRUST LIFE INSURANCE COMPANY**

Statutory Statements of Operations

Years ended December 31, 2025 and 2024

(In thousands of dollars)

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| **Revenues:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Premiums and other considerations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Life and annuity premiums | $3638209 | $6531514 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Supplementary contracts with life contingencies | 3466 | 1686 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment income | 2018607 | 1673687 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commissions and expense allowances on reinsurance ceded | 135891 | 117297 |
| &nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous income | 9357 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 5805530 | 8324184 |
| Benefits and expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Benefits paid or provided for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Death benefits | 43162 | 34183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annuity benefits | 445533 | 396705 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Surrender benefits | 1635462 | 1651399 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest and adjustments on policy or deposit-type contract funds | 156487 | 2796 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other benefits | 1718 | 1590 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in policy reserves | 2442318 | 5231560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total benefits paid or provided for | 4724680 | 7318233 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commissions | 335183 | 500877 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commissions and expense allowances on reinsurance assumed | 1865 | 2002 |
| &nbsp;&nbsp;&nbsp;&nbsp;General expenses | 133955 | 104157 |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance taxes, licenses and fees | 20503 | 30907 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total benefits and expenses | 5216186 | 7956176 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain from operations before federal income taxes and net |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;realized capital gains (losses) | 589344 | 368008 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends to Policyholders | (1) |  |
| Federal income tax expense (benefit) | 149645 | 131457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain from operations before net realized capital gains (losses) | 439700 | 236551 |
| Net realized capital gains (losses), less capital gains tax (benefit) of ($9399) in 2025 and ($11609) in 2024 and amounts transferred (to) from the interest maintenance reserve of $48 in 2025 and $1,375 in 2024 | $(35356) | $(43673) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $404344 | $192878 |

---

See accompanying notes to statutory financial statements

**EQUITRUST LIFE INSURANCE COMPANY**

Statutory Statements of Changes in Capital and Surplus

Years ended December 31, 2025 and 2024

(In thousands of dollars)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |<br>**Common Stock** | **Additional paid-**<br>**in capital** | **Unassigned**<br>**funds** | **Total capital and**<br>**surplus** |
| Balances at December 31, 2023 | $3000 | $784667 | $1630706 | $2418373 |
| Correction of an error |  |  | (11834) | (11834) |
| Net income for 2024 |  |  | 192878 | 192878 |
| Change in unrealized gains (losses) on investments, net of tax |  |  | 36626 | 36626 |
| Change in deferred income taxes |  |  | 58051 | 58051 |
| Change in nonadmitted assets |  |  | 648 | 648 |
| Change in asset valuation reserve |  |  | (10612) | (10612) |
| Change in surplus as a result of reinsurance | - | - | 72244 | 72244 |
| Balances at December 31, 2024 | $3000 | $784667 | $1968707 | $2756374 |
| Correction of an error |  |  | (3530) | (3530) |
| Net income for 2025 |  |  | 404344 | 404344 |
| Change in unrealized gains (losses) on investments, net of tax |  |  | (21106) | (21106) |
| Change in deferred income taxes |  |  | 54847 | 54847 |
| Change in nonadmitted assets |  |  | (15114) | (15114) |
| Change in asset valuation reserve |  |  | (29879) | (29879) |
| Change in surplus as a result of reinsurance | - | - | (86554) | (86554) |
| Balances at December 31, 2025 | $3000 | $784667 | $2271715 | $3059382 |

---

See accompanying notes to statutory financial statements

**EQUITRUST LIFE INSURANCE COMPANY**

Statutory Statements of Cash Flow

Years ended December 31, 2025 and 2024

(In thousands of dollars)

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Cash flow from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums and other considerations received, net of reinsurance paid | $3622370 | $6533200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income received | 1862761 | 1542535 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds held by reinsurers and miscellaneous income (loss) | 83613 | 111161 |
|  | 5568744 | 8186896 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Benefits paid | (1967324) | (1892118) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commissions, expenses paid and aggregate write-ins for deductions | (484454) | (625480) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends paid to policyholders | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal income taxes received (paid) | (176687) | (149003) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | 2940280 | 5520295 |
| Cash flow from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales, maturities or repayments of investments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds | 2303922 | 3483035 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stocks | 29641 | 53034 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans | 283149 | 254126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other invested assets | 42823 | 142387 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives and miscellaneous proceeds | 16254 | 50041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total proceeds from sales, maturities or repayments of investments | 2675789 | 3982623 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of investments acquired: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds | (6224275) | (8132044) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stocks | (43947) | (62053) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans | (692878) | (593166) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate | 1784 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other invested assets | (83825) | (80090) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives and miscellaneous applications | (109819) | (79939) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of investments acquired | (7152960) | (8947292) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (increase) decrease in contract loans | (30) | 109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities | (4477201) | (4964560) |
| Cash flow from financing and miscellaneous activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other cash provided (used): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowed Funds | (75000) | 74935 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in deposit type funds | 1050000 | 464503 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds held under coinsurance | 54392 | (21276) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments to parent | (1725) | (1145) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash advances to subsidiary | (1023) | 460 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash received from derivative positions | 45539 | 91316 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other sources, net | (43674) | (27926) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing and miscellaneous activities | 1028509 | 580867 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in cash, cash equivalents and short-term |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;investments: | (508412) | 1136602 |
| Cash, cash equivalents and short-term investments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning of year | 3884769 | 2748167 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End of year | $3376357 | $3884769 |

---

See accompanying notes to statutory financial statements

**EQUITRUST LIFE INSURANCE COMPANY**

Statutory Statements of Cash Flow

Years ended December 31, 2025 and 2024

(In thousands of dollars)

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Supplemental disclosures of noncash transactions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest capitalization on bonds | $23411 | $20018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax free exchanges-bonds | 123744 | 441067 |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxable exchanges-bonds | 15753 | 996 |
| &nbsp;&nbsp;&nbsp;&nbsp;Security transfers-bonds |  | 28773 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax free exchanges-stocks | 3450 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclass to common stocks | 25000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax free exchanges-other invested assets | 1720 | 347418 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclass to other invested assets | 12601 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage interest capitalization |  | 1165 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclass acquisition bonds |  | 506 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans transferred to real estate | 22529 |  |

---

See accompanying notes to statutory financial statements

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

**(1) Organization**

EquiTrust Life Insurance Company (EquiTrust or the Company) operates in the life insurance industry, distributing individual annuity and life products through independent insurance marketing organizations and broker dealers. The Company is domiciled in the state of Arizona and is licensed to do business in forty-nine states and the District of Columbia. The Company has a closed block of annuity business from American Equity that was assumed through a coinsurance agreement. The Company also has executed reinsurance treaties with former affiliated, affiliated and nonaffiliated companies, to both assume and cede blocks of annuity business (see note 9).

On September 9, 2024, Amistad Financial Group, LLC, Atlanta Life Holdings, Inc., and Eric Holoman filed a Form A, Statement Regarding the Acquisition of Control of or Merger with a Domestic Insurer, with the Arizona Department of Insurance and Financial Institutions regarding the intended acquisition of the Company and its wholly-owned subsidiaries. On June 10, 2025, the Arizona Department of Insurance approved the acquisition and it was consummated on November 14, 2025, thereby making the Company a member of Amistad Financial Group, LLC holding company system.

**(2) Summary of Significant Accounting Policies**

***(a) Basis of Presentation***

The accompanying financial statements have been prepared on the basis of statutory accounting practices prescribed or permitted by the Arizona Department of Insurance, a comprehensive basis of accounting that differs from generally accepted accounting principles in the United States (GAAP). The Arizona Department of Insurance requires insurance companies domiciled in the state of Arizona to prepare their statutory basis financial statements in accordance with the National Association of Insurance Commissioners' (NAIC) Accounting Practices and Procedures Manual (NAIC SAP). On December 31, 2025 and 2024, the Company had no permitted or prescribed practices, other than NAIC SAP and permitted practices referred to in Note 2(n).

The Financial Accounting Standards Board promulgates the accounting principles for financial statements that are prepared in conformity with U.S. GAAP (GAAP) with applicable authoritative accounting pronouncements. As a result, the Company cannot refer to financial statements prepared in accordance with NAIC SAP as having been prepared in accordance with GAAP. The primary differences between GAAP and NAIC SAP, although not reasonably determinable are presumed to be material and pervasive and are summarized as follows:

Under GAAP:

● The Asset Valuation Reserve (AVR) and Interest Maintenance Reserve (IMR) are eliminated as investments with unrealized gains and losses reported directly in equity and the realized gains and losses reported in income.

● Certain assets designated under NAIC SAP as "nonadmitted assets" are included in the GAAP balance sheet rather than excluded from assets in the statutory balance sheet;

● Certain policy acquisition costs and deferred sales inducements are deferred and amortized rather than being charged to operations as incurred;

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

● Policy and contract reserves for traditional life insurance are based on best estimates of expected mortality, morbidity, persistency and interest rather than being based on prescribed statutory methodologies;

● Policy reserves on universal life and certain investment products are reported at account value, including additional liabilities for certain guaranteed benefits such as lifetime income benefit riders valued using actuarial assumptions for GAAP, rather than using prescribed statutory methodologies under NAIC SAP;

● Insurance contracts that contain an embedded derivative, including fixed index annuities, are bifurcated from the host contract and accounted for separately at fair value while the host is accreted to the estimated future minimum guarantee value using the effective interest method. Under NAIC SAP, contracts that contain an embedded derivative are not bifurcated and are accounted for as part of the host contract;

● Market Risk Benefits are accounted for using discounted stochastic projections and best estimates for policyholder behavior in terms of benefits less fees rather than using prescribed integrated benefit stream mechanisms under NAIC SAP.

● Investments in wholly owned insurance subsidiaries, other entities under the control of the parent, and certain variable interest entities are consolidated in the parent's financial statements rather than being carried at the parent's share of the underlying audited GAAP equity of a non-insurance subsidiary or statutory surplus of a domestic insurance subsidiary;

● Bonds designated as available for sale and trading securities are reported at fair value for GAAP rather than at amortized cost, with unrealized gains and losses reported in equity and income, respectively;

● An allowance for credit losses is established for available for sale securities under the current expected loss model under GAAP rather than being evaluated for other-than-temporary-impairments (OTTI) with impairments recorded as a direct write-down of the security's cost basis for NAIC SAP;

● Equity securities are reported at fair value, net of tax, for GAAP with any changes reported in earnings, rather than unrealized gains and losses reported in capital and surplus;

● Surplus notes designated as available for sale are reported at fair value for GAAP with unrealized gains and losses reported in equity whereas surplus notes rated by an NAIC Credit Rating Provider (CRP) with a designation equivalent of NAIC 1 or NAIC 2 shall be reported at amortized cost and those with an NAIC designation equivalent of NAIC 3 to NAIC 6 shall be reported at the lesser of amortized cost or fair value;

● Preferred stock designated as available for sale and trading securities are reported at fair value for GAAP rather than at amortized cost for redeemable preferred stocks designated highest-quality to medium-quality (NAIC designations RP1 to RP3 and P1 to P3) or the lower of amortized cost or fair value for redeemable preferred stocks that are designated low quality to in or near default (NAIC designations RP4 to RP6 and P4 to P6, respectively);

● Under GAAP, money market mutual funds are classified as short-term investments and as cash equivalents for NAIC SAP;

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

● Certain reinsurance transactions are accounted for as financing transactions under GAAP and as reinsurance for NAIC SAP. Assets and liabilities are reported gross of reinsurance for GAAP and net of reinsurance for NAIC SAP;

● The statements of cash flow reconcile to changes in cash and cash equivalents with original maturities of three months or less. Under NAIC SAP, the statements of cash flow reconcile to changes in cash, cash equivalents and short-term investments with original maturities of one year or less. A reconciliation of net income to net cash provided by operating activities is not required under NAIC SAP;

● Premiums, benefits and reserve changes for deposit-type and investment contracts are not included in revenue or benefits in the statement of operations; and,

● Generally, changes in deferred taxes are reported as a component of net income under GAAP. Under NAIC SAP, a net deferred tax asset ("DTA"), for the tax effect of timing differences between book and tax assets and liabilities, is only reported as an admitted asset to the extent that it is realizable within three years and represents less than 15% of capital and surplus (adjusted to exclude any net DTAs, electronic data processing ("EDP") equipment and operating system software and any net positive goodwill), subject to limits set by Statement of Statutory Accounting Principles ("SSAP") No. 101. The change in net deferred tax asset is recorded directly to surplus.

***(b) Risks and Uncertainties***

***Financial Statements*** – The preparation of the Company's statutory basis financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ from those statements. The most significant estimates are associated with reserves for contract liabilities and fair value estimates of invested assets.

***Investments*** – The Company is exposed to risks that issuers of securities owned by the Company will default or that interest rates will change and cause a decrease in the value of its investments. Management attempts to mitigate these risks by investing in high-grade securities and loans and by matching maturities of its investments with the anticipated payouts of its liabilities.

***(c) Investments***

All securities are accounted for as of the date the investments are purchased or sold (trade date).

**Bonds**

The Securities Valuation Office (SVO) of the NAIC evaluates the credit quality of the Company's bond investments when not otherwise evaluated by an independent CRP and issues related credit ratings. Bonds rated "1" (highest quality), "2" (high quality), "3" (medium quality), "4" (low quality) or "5" (lower quality) are reported in the financial statements at amortized cost, less any valuation impairment. Bonds rated "6" (lowest quality) are reported at the lower of amortized cost or fair value. The effective interest method is used to amortize any purchase premium or discount.

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

Included within bonds are asset-backed securities. The carrying value of most residential mortgage-backed securities and commercial mortgage-backed securities is determined based on the results of financial modeling performed by a third party, including estimates of future prepayments that are obtained from independent sources. Certain other asset-backed securities are subject to a two-step rating process developed by the SVO for determining carrying value. The carrying value of asset-backed securities in default that are other-than-temporarily impaired is based upon estimated cash flows discounted at the current effective yield when the intent and ability exists to hold the security until recovery of that value, otherwise such securities are carried at the lower of amortized cost or fair value.

Prepayment assumptions are updated at least quarterly, with the retrospective method used to adjust net investment income for changes in the estimated yield to maturity.

**Adoption of Principles-Based Bond Definitions (Effective January 1, 2025)**

Effective January 1, 2025, the Company adopted the NAIC's Principles-Based Bond Definition Project, as set forth in the revised SSAP No. 26 and SSAP No. 43. The Project establishes new principles-based guidance for classifying investments as "bonds," distinguishing between "issuer credit obligations" and "asset-backed securities," and clarifies the characteristics needed for securities to be reported as bonds for statutory purposes. Under the revised guidance, a bond is a security that establishes a creditor relationship with a fixed schedule for one or more future payments, and qualifies either as an Issuer Credit Obligation (ICO) reported under SSAP No. 26 or as an Asset-Backed Security (ABS) reported under SSAP No. 43. The Company evaluated all investments reported on Schedule D at the CUSIP/PPN (tranche) level and updated classifications accordingly.

Reclassification of Investments:

● No investments previously classified as bonds were re-characterized as other invested assets.

● Certain structured securities and hybrids were evaluated and, where appropriate, reclassified to align with the new issuer credit obligation or asset-backed security criteria.

● As a result, $0 of invested assets were transferred from bonds to other invested assets, and $0 were transferred from other invested assets to bonds.

Significant Judgments and Policies:

Management exercised significant judgment in applying the definition to complex or hybrid securities, particularly for investments with both credit and collateral-based payment features. In such instances, classification was based on the predominance of payment characteristics consistent with the issuer credit obligation or asset-backed security as defined by the NAIC.

Financial Statement Impact:

As a result of implementation:

● Admitted asset values changed by $0, and statutory surplus was affected by $0.

● The changes had no impact on the Company's RBC ratio and other solvency metrics.

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

**Preferred Stocks**

Redeemable preferred stocks are stated at amortized cost unless they have an NAIC rating designation of 4, 5, or 6. Redeemable preferred stocks with an NAIC rating designation of 4, 5, or 6 are stated at the lower of amortized cost or fair value. Perpetual preferred stocks are valued at fair value, not to exceed any currently effective call price. Redeemable preferred stock must be redeemed by the issuing enterprise or is redeemable at the option of the reporting entity. Perpetual preferred stock has no redemption or sinking fund features and is not redeemable at the option of the issuer.

**Common Stocks**

Unaffiliated common stocks are stated at fair value, with changes in unrealized gains or losses credited or charged directly to unassigned surplus, net of tax. Affiliated common stocks are carried at underlying audited U.S. GAAP equity.

**Mortgage Loans**

Mortgage loans are stated at unpaid principal balances, net of provisions for estimated losses. Mortgage loans acquired at a premium or discount are carried at amortized cost using the effective interest rate method, net of provisions for estimated losses. A mortgage is evaluated for impairment when it is probable that the receipt of contractual payments of principal and interest may not occur when scheduled. If the impairment is considered to be temporary, a valuation reserve is established for the excess of the carrying value of the mortgage over its estimated fair value through surplus. Changes in valuation reserves for temporary impairments on mortgages are included in net unrealized capital gains/(losses) on investments in surplus. When an event occurs resulting in an impairment that is other-than-temporary, a direct write-down is recorded as a realized capital loss and any temporary valuation allowance is reversed. The Company recorded mortgage valuation allowances of $6,572 and $6,996 at December 31, 2025 and 2024, respectively.

**Real Estate**

Properties held for sale are stated at the lower of depreciated cost or fair value, less encumbrances and estimated costs to sell the property. Depreciation is computed on a straight-line basis for all real estate holdings. There were no encumbrances as of December 31, 2025 or 2024.

**Cash, Cash Equivalents and Short-Term Investments**

Cash constitutes a medium of exchange that a bank or other similar financial institution will accept for deposit and allow an immediate credit to the depositor's account. Also classified as cash for financial statement purposes, although not falling within the above definition of cash, are savings accounts and certificates of deposits or other similar financial instruments with maturity dates within one year or less from the acquisition date.

Cash equivalents are highly liquid, short-term investments with original maturities of three months or less that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates and are typically reported at amortized cost. Money market mutual funds that are registered under the Investment Company Act of 1940 are reported as cash equivalents and carried at fair value or net asset value as a practical expedient. Short-term investments (debt securities with maturities of one year or less at the time of acquisition) that are not impaired are stated at amortized cost using the effective interest method. Short-term investments that are impaired are stated at

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

the lower of amortized cost or fair value.

**Contract Loans**

Contract loans are secured by the cash surrender value or collateral assignment of the related policy or contract and are stated at outstanding principal balances inclusive of any unpaid accrued interest more than 90 days past due. The excess of unpaid contract loan balances over the cash surrender value, if any, is nonadmitted and reflected as an adjustment to surplus. Unpaid interest is capitalized on the policy or contract anniversary date.

**Derivative Instruments**

The Company uses currency swaps and currency forwards to hedge against the risk of fluctuations in foreign currency exchange rates. The Company also uses equity index options to hedge against certain equity indexed policyholder liabilities. Currency swaps, currency forwards and equity index options are marked to fair value. Changes in fair value are recorded as unrealized gains and losses within surplus. Effective January 1, 2022 in connection with the permitted practice discussed in Note 2(n), the Company began reporting equity index options at amortized cost, with amortization being calculated on a straight-line basis, with amortization expense and realized gains being reported in net investment income.

Beginning in 2024, the Company began using floating to fixed interest rate swaps to hedge exposure to floating interest rates on certain collateralized lending obligations. Hedge accounting is utilized for which the interest rate swaps are deemed cash flow hedges and are recorded at amortized cost with periodic swap settlements being recorded as investment income.

**Other Invested Assets**

Other invested assets are primarily comprised of investments in limited liability companies, surplus notes, limited partnerships, residual tranches of collateralized lending obligations, and collateral loans. Investments in limited liability companies and limited partnerships are stated based on the underlying GAAP audited equity of the investee. Surplus notes rated NAIC 1 through NAIC 2 by an NAIC CRP are carried at amortized cost and at the lesser of amortized cost or fair value if rated NAIC 3 through NAIC 6. Residual tranches of collateralized lending obligations are carried at the lesser of amortized cost or fair value with changes in fair value recorded in changes in capital and surplus. Collateral loans are carried at unpaid principal balance.

The Company held collateral loans by qualifying investment type as of December 31, 2025 and 2024 as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Aggregate**<br>**Loan** |<br>**Admitted** |<br>**Nonadmitted** | **Aggregate**<br>**Loan** |<br>**Admitted** |<br>**Nonadmitted** |
| **<u>Collateral type</u>** |  |  |  |  |  |  |
| Bonds | $763823 | $763823 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $769856 | $&nbsp;&nbsp;&nbsp;&nbsp;769856 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $763823 | $763823 | $&nbsp;&nbsp;- | $769856 | $769856 | $&nbsp;&nbsp;- |

---

**Receivable/Payable for Securities**

The Company has entered into agreements to purchase or sell certain securities as of December 31, 2025 and 2024 that have not yet settled and are recorded as a payable or receivable at amortized cost.

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

**Loan Payable**

The Company entered into a $210,000 credit facility with PNC Financial Services ("PNC") effective October 14, 2022 in order to enhance the Company's liquidity position. On October 14, 2025, the PNC credit facility was amended and restated from $210,000 to $450,000. December 31, 2025 and 2024, the outstanding loan payable was $0 and $75,000, respectively. Accrued interest on the credit facility as of December 31, 2025 and 2024 was $161 and $852, respectively.

**Reverse Repurchase Agreements**

The Company enters into reverse repurchase agreements under which the Company is the secured lender. Under these agreements, the Company receives unrestricted collateral which has a fair value as of the transaction date of no less than 102% of the value of cash loaned. The Company loaned cash in the amount of $113,250 and $120,144 at December 31, 2025 and 2024, respectively, and recorded the loaned amounts as short-term investments.

**Repurchase Agreements**

The Company enters into repurchase agreements under which the Company is the borrower. Each repurchase agreement must be evidenced by a Master Repurchase Agreement ("MRA") or other written agreement between the Company and its counterparties. Under the terms of the MRAs, the Company sells investments to the counterparty and the Company agrees to repurchase the same or similar investments back from the counterparty on a specific date at a specified price. On the maturity date, the Company and counterparty may elect to enter into a new repurchase agreement. The Company's decision to do so is dependent on the Company's liquidity needs and its assessment of the creditworthiness of the counterparty and the collateral's performance. The Company borrowed cash in the amount of $0 at December 31, 2025 and 2024 and recorded the borrowed amounts as payable for securities lending.

**Net Investment Income**

Investment income is recorded when earned. Dividends are recorded on the ex-dividend date. See note 6 for further discussion of the Company's investment income.

**Investment Income Due and Accrued**

Accrued investment income is comprised of accrued interest on bonds, preferred stock, short-term investments, mortgage loans, contract loans, other invested assets and dividends declared but not yet received. Accrued investment income more than 90 days past due is nonadmitted and reported as a direct reduction of surplus in the statements of changes in capital and surplus. The Company has no accrued investment income more than 90 days past due as of December 31, 2025 and 2024.

**Investment Capital Gains and Losses**

Realized capital gains and losses are determined on the basis of the specific identification method. Realized capital losses also include valuation adjustments for impairments of bonds, mortgage loans, common and preferred stocks and other investments that have experienced a decline in fair value that management considers to be "other-than-temporary." In determining whether impairments are other-than-temporary, management considers the size of the excess of carrying value over fair value, the likelihood and expected timing of a recovery in value, the credit quality and financial condition of the issuer, management's

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

intent to sell when a decline is due to interest rates, and management's intent and ability to hold the investment until maturity or a recovery in the investment's fair value. When it is determined that an investment (other than asset-backed securities, discussed below) is other-than-temporarily impaired, the cost basis of the investment is written down to fair value through a change recorded in net realized capital losses in the statements of operations.

For asset-backed securities the determination of OTTI is based on an estimate of the noninterest loss, which is recognized in net realized capital losses in the statements of operations. To the extent the Company determines that a non-structured security, corporate bond, common stock, preferred stock or mortgage loan is deemed to be OTTI, the difference between the cost of the security and fair value is recorded as a realized loss and the carrying amount of the investment is written down to its estimated fair value through realized capital losses. In accordance with SSAP No. 43, securities with OTTI are required to be written down to fair value only if the Company intends to sell or cannot assert the intent and ability to hold the investment until its anticipated recovery. However, if the Company can assert the intent and ability to hold the investment until its anticipated recovery, the valuation adjustment is based on the discounted future expected cash flows of the security discounted at the security's original effective interest rate. Realized capital gains and losses as reported in the statements of operations are net of any capital gains tax (or benefit) and exclude any deferrals to the IMR of interest rate related capital gains or losses.

Unrealized capital gains and losses include changes in the fair value of common stocks, interest rate swaps, certain bonds and preferred stocks carried at fair value due to NAIC rating and change in the equity method share of the accumulated earnings of limited liability companies and partnerships and are reported net of any related changes in deferred taxes. Changes in unrealized capital gains and losses are reported in the statements of changes in capital and surplus.

***(d) Nonadmitted Assets***

For statutory accounting purposes, certain assets are designated as nonadmitted assets (principally electronic data processing equipment, furniture and equipment and affiliated investments). EquiTrust had $16,550 and $1,436 in nonadmitted assets at December 31, 2025 and 2024, respectively.

***(e) Separate Accounts***

The assets and liabilities of the separate account shown in the statements of admitted assets, liabilities, and capital and surplus are reported at fair value or contract value in accordance with the valuation procedures in the applicable contract. The basis used for the separate accounts are as follows:

**Separate Account I:** Maintained for the benefit of the separate account policy holders and is legally insulated from general account claims. The assets and liabilities are reported at fair value.

**Separate Account II:** Maintained for the benefit of the separate account policy holders and is legally insulated from general account claims. The assets and liabilities for the Private Placement Funding Agreements, issued in 2018, are reported at contract value. The respective assets and liabilities are subject to a stable value protection master agreement which guarantees the performance of underlying investment divisions within Separate Account II to the Company and Private Placement Funding Agreement holders.

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

***(f) Premium Revenue and Related Expenses***

Annuity considerations are recognized as revenue when received. Life insurance premiums are recognized as revenue over the premium paying period of the related policies when due. Premiums for traditional life insurance products are recognized as revenue when due. Considerations for deposit-type contracts, which do not have any life contingencies, are recorded directly to the related liability. Expenses incurred in connection with acquiring new insurance business are charged to operations as incurred.

***(g) Commission***

The Company expenses commissions at the time of sale for all products. Renewal commissions are paid for Multi-Year Guaranteed Annuity (MYGA) and for additional premiums on some other products.

***(h) Policy Reserves and Liabilities for Deposit-Type Contracts***

Policy reserves and liabilities consist of life and annuity policy reserves and deposit-type contracts.

**Life and Annuity Policy Reserves**

Life and annuity policy liabilities are developed using prescribed actuarial methods and are intended to provide, in the aggregate, reserves that are greater than, or equal to, the minimum or guaranteed policy cash values or the amounts required by law. Life reserves are calculated in accordance with the Commissioner's Reserve Valuation Method (CRVM) and Actuarial Guideline 36 as applicable. Annuity reserves are calculated in accordance with the Commissioner's Annuity Reserve Valuation Method (CARVM) and Actuarial Guidelines 33 and 35, as applicable. Mortality is based on the appropriate table from the year of issue, most recently the 2017 CSO table for life insurance and the 2012 IAR table for annuities. Valuation interest rates are also based on liability type and year of issue; the rates range from 2.50% to 8.75%. The liability under Standard Valuation Law (SVL) for income benefit riders is based on the greatest present value of all potential future guaranteed benefits. For policies with lifetime income benefit riders, there is an additional benefit stream included in the calculation. The inputs used in the calculation of the liability for lifetime benefit riders are prescribed by SVL and generally require reserves for the worst-case scenario.

**Deposit-Type Contracts**

Liabilities for funding agreements, premium deposit funds, investment-type contracts such as supplementary contracts not involving life contingencies and certain structured settlement annuities are based on account value or accepted actuarial methods using applicable interest rates.

**Policy and Contract Claims**

The liability for policy and contract claims is based upon the estimated ultimate cost of settling the claims, using past experience adjusted for current trends, and any other factors that modify past experience.

***(i) Income Taxes***

The Company uses a balance sheet approach of accounting for federal income taxes. Current income taxes incurred are charged to the statements of operations based on estimates for the current year. Under the balance sheet method, deferred tax assets, net

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

of any nonadmitted portion, and deferred tax liabilities are recognized for the future tax consequences attributable to differences between the statutory financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected on which those temporary differences are expected to be recovered or settled. The change in deferred taxes is charged or credited directly to surplus. The net deferred tax assets recorded are subject to the admissibility limitations and a valuation allowance, as applicable, set forth in SSAP No. 101, Income Taxes.

Beginning in 2022, the Company reported Equity Index Options as described in the Summary of Significant Accounting Policies Section (c) Derivative Instruments. The Company is following the Iowa prescribed method of accounting for statutory accounting purposes. For federal income tax purposes, the Company records the tax effect of mark-to-market unrealized gains (losses) in the period incurred and realized gains (losses) upon maturity. In 2023, the Company requested a change in the tax accounting method to spread the mark-to-market unrealized gains (losses) and realized gains (losses) over a three-year period. The Internal Revenue Service ("IRS") issued an approval of the requested change in tax accounting method in 2024.

The difference between statutory accounting and tax method results in material temporary differences that give rise to tax-effected Deferred Tax Assets ("DTA") of $18,700 and $12,400 as of December 31, 2025 and 2024, respectively. Additionally, the change in tax method of accounting requires recognition of IRC Section 481(a) adjustment to reflect the tax liability as if the new method had been used for three prior years. Per IRS guidance, the impact of Section 481(a) was recorded in 2023 and 2024. The result of application of Section 481(a) is an increase in taxable income in 2023 of $40,600 and a decrease in taxable income of $40,600 in 2024. As such, no Section 481(a) DTA remains as of December 31, 2025.

The Equity Options DTA is subject to admissibility rules under SSAP 101.

***(j) Reinsurance***

Assumed reinsurance premiums, claims and claim adjustment expenses are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. For ceded business, the Company remains contingently liable for the liabilities in the event the reinsurers are unable to meet their obligations under the reinsurance agreements. To limit the possibility of such losses, the Company evaluates the financial condition of its reinsurers and monitors its concentration of credit risk.

***(k) Amounts Recoverable and Payable Under Reinsurance Agreements***

Amounts recoverable and payable under reinsurance agreements include amounts recoverable or due related to net settlements with assumed, ceded and retroceded activity.

***(l) IMR/AVR***

The Company is required to maintain an IMR and AVR. The IMR is used to defer realized capital gains and losses, net of any income tax, on fixed income investments and derivatives that are attributable to changes in market interest rates, including both changes in risk-free market interest rates and market credit spreads. Net realized capital gains and losses deferred to the IMR are amortized into investment income over the estimated remaining term to maturity of the investment sold. Negative IMR is admitted in accordance with the guidelines established by the Statutory Accounting Principles Working Group ("SAPWG") in their interpretive guidance within INT 23-01. The AVR represents a reserve for invested asset valuation using a formula

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

prescribed by the NAIC. The AVR is intended to protect surplus by absorbing declines in the value of the Company's investments that are not related to changes in interest rates. Increases or decreases in the AVR are reported as direct adjustments to surplus in the statements of changes in capital and surplus.

***(m) Funds Withheld***

The Company has coinsurance arrangements with funds withheld where the Company is both the ceding entity and the assuming entity. The following accounting applies to coinsurance arrangements with funds withheld:

**The Company as Ceding Entity**

Premiums paid or payable to the reinsurer reduce premium income. Policy benefits payments paid by the reinsurer reduce reported policy benefits. Commissions and expense allowances owed by the reinsurer are reported separately in the statements of operations as they are incurred. A net reduction to policy reserves is taken for the portion of the obligation assumed by the reinsurer. Any funds withheld by the Company as the ceding entity are recorded as a separate funds held liability in the statements of admitted assets, liabilities and capital and surplus.

**The Company as Assuming Entity**

Premiums received or receivable by the Company increase premium income. Policy benefit payments paid by the Company increase the reported policy benefits. Commissions and expense allowances owed by the Company are reported separately in the statements of operations when incurred. The Company records its share of the statutory policy reserves attributable to the business identified in the contract. Any funds withheld by the ceding entity are recorded by the Company as a separate funds held asset in the statements of admitted assets, liabilities and capital and surplus.

The Company also has a modified coinsurance arrangement with funds withheld where the Company is the ceding entity. The following accounting applies to modified coinsurance arrangements with funds withheld:

**Ceding Entity**

The Company retains assets equal to the modified coinsurance reserve. Premiums paid or payable to the reinsurer net of any experience refunds result in the reduction of premium income. Policy benefits payments paid by the reinsurer reduce reported policy benefits. Expense allowances paid by the reinsurer are reported separately in the statements of operations as they are incurred. The modified coinsurance reserve is included in policy reserves in the statements of admitted assets, liabilities and capital and surplus.

***(n) Permitted Practice***

In 2022, the Company requested and was granted a permitted practice by the Arizona Department of Insurance to follow the accounting practices prescribed by the Iowa Insurance Division Prescribed Method (Iowa administrative code r.191.97.1 – 191.97.7).

Under the permitted practice, financial options used for hedging purposes are recorded at amortized cost with amortization expense and realized gains recorded through net investment income instead of being recorded at market value with changes in

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

market value being recorded to Capital and Surplus and realized gains or losses being recorded to net realized gains (losses). For aggregate reserves for life contracts, the Company's liabilities are consistent with the guidance in AG33 CRVM which requires the crediting rate to be consistent with the market value of financial options, whereas under the permitted practice the crediting rate does not consider the market value of options.

The differences between NAIC and permitted practices impact to Net Income and Capital and Surplus as of December 31, 2025 and December 31, 2024 are as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Statutory summary of operations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income - permitted practice | $404344 | $192878 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment income from derivatives | 279038 | 217486 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in reserves | (99971) | (36196) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized gains and losses | (267760) | (191057) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Income - NAIC | $315651 | $183111 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital and surplus - permitted practice | $3059382 | $2756374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income impact from derivative instruments | 97128 | 85848 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred taxes | 18747 | 12384 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains from derivatives | 278204 | 211860 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserves | (300331) | (157803) |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital and surplus - NAIC | $3153130 | $2908663 |

---

**(3) Disclosures Concerning Fair Value of Financial Instruments**

***(a) Financial Instruments Fair Value Measurements***

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value estimates are significantly affected by the assumptions used, including the discount rate and estimates of future cash flow. Although fair value estimates are calculated using assumptions that management believes are appropriate, changes in assumptions could cause these estimates to vary materially. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in some cases, could not be realized in the immediate settlement of the instruments. Certain financial liabilities (including noninvestment type insurance contracts) and all nonfinancial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value to the Company.

The Company's financial assets and liabilities have been classified, for disclosure purposes, based on a hierarchy defined by SSAP No. 100, Fair Value Measurements and Disclosures. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An asset or a liability's classification is based on the lowest level input that is significant to its measurement. For example, a Level 3 fair value measurement may include inputs that are both observable (Levels 1 and 2) and unobservable (Level 3).

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

The levels of the fair value hierarchy are as follows:

**Level 1** Fair value is based on unadjusted quoted prices for identical assets or liabilities in active markets accessible at the measurement date.

**Level 2** Fair value is based on 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** Fair value is based on valuations derived from techniques in which one or more significant inputs are unobservable (supported by little or no market activity). 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.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, a financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. From time to time, there may be movements between levels as inputs become more or less observable, which may depend on several factors including the activity of the market for the specific security, the activity of the market for similar securities, the level of risk spreads and the source of the information from which we obtain the information. Transfers in or out of any level are measured as of the beginning of the period.

For financial instruments, the statement value and fair value, including level within the fair value hierarchy, at December 31, 2025 and 2024 were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |<br>**Statement value** |<br>**Fair value** |<br>**Level 1** |<br>**Level 2** |<br>**Level 3** | **Net Asset**<br>**Value** |
| General account assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds - Issuer credit obligations | $17886768 | $17211625 | $834619 | $5278360 | $11098646 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds - Asset-backed securities | 8457483 | 7899085 |  | 6577043 | 1322042 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stocks | 156264 | 156264 |  | 88768 | 67496 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stocks | 264718 | 264718 |  | 201250 | 63468 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans | 4284430 | 4051295 |  | 4051295 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash, cash equivalents, and short-term investments | 3376357 | 3376357 | 1158030 | 2218327 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract loans | 6735 | 6735 | 6735 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other invested assets | 1174440 | 1181064 |  | 58550 | 837839 | 284675 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative instruments | 168578 | 446600 |  | 387078 | 59522 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivable for securities | 140382 | 140382 | 140382 |  |  |  |
| Separate account assets | 915699 | 738600 | 73748 |  | 664852 |  |
| General account liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liability for deposit-type contracts | $5890536 | $5890536 | $- | $- | $5890536 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount payable under reinsurance agreements | 172653 | 172653 | 172653 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative collateral | 366619 | 366619 | 366619 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative instruments | 2770 | 2770 |  | 2770 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payable for securities | 121715 | 121715 | 121715 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan payable | 161 | 161 | 161 |  |  |  |
| Separate account liabilities | 915699 | 738600 | 73748 |  | 664852 |  |

---

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Statement**<br>**value** |<br>**Fair value** |<br>**Level 1** |<br>**Level 2** |<br>**Level 3** | **Net Asset**<br>**Value** |
| General account assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds | $22379427 | $20694863 | $1171650 | $11222852 | $8300361 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stocks | 171642 | 171559 |  | 94929 | 76630 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stocks | 232672 | 232672 | 21062 | 179731 | 13551 | 18328 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans | 3911417 | 3566176 |  | 3566176 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash, cash equivalents, and short-term |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;investments | 3884769 | 3883901 | 3883901 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract loans | 6705 | 6705 | 6705 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other invested assets | 1163900 | 1164114 | 26378 | 80297 | 819756 | 237683 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative instruments | 181744 | 393125 |  | 363791 | 29334 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivable for securities | 30562 | 30562 | 30562 |  |  |  |
| Separate account assets | 900578 | 708378 | 71623 |  | 636755 |  |
| General account liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liability for deposit-type contracts | $4826432 | $4826432 | $- | $- | $4826432 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount payable under reinsurance |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;agreements | 71048 | 71048 | 71048 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative collateral | 323850 | 323850 | 323850 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payable for securities | 98175 | 98175 | 98175 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan payable | 75000 | 75000 | 75000 |  |  |  |
| Separate account liabilities | 900578 | 708378 | 71623 |  | 636755 |  |

---

The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:

**(I) Bonds**

The statutory basis of accounting permits fair value disclosures for bonds to be based on valuations published by the SVO, quoted market prices, independent pricing services or internally developed pricing models. Management takes into consideration several sources of data in determining the fair values of bonds. The Company's valuation policy dictates that prices are initially sought from third party pricing services. In the event that pricing is not available from these services, or upon review of the prices provided it is determined the prices may not be reflective of market conditions, those securities are submitted to brokers to obtain quotes. The Company evaluates the third party pricing services and brokers to assess whether the vendor applies methodologies that will provide an appropriate value. The disclosure of fair value for bonds is primarily based on third party pricing services or broker quotes. For privately placed long-term bond investments without a readily ascertainable fair value, such values were determined utilizing a discounted cash flow methodology based on readily observable coupon rates, maturity provisions and credit assumptions from nearly-identical or similar investments.

The Company takes into consideration both qualitative and quantitative factors as part of its analysis, including but not limited to, an overall analysis of portfolio fair value movement against general movements in interest rates and spreads. The Company also compares price movement trends, considering the reasons for both significant price movements between periods and a lack of movement where the Company has become aware of securities that experienced a positive or negative credit or other event that would suggest the price provided has not captured market activity.

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

Effective January 1, 2025, the Company adopted the NAIC Principles-Based Bond Definition Project (the "Bond Project"), as discussed in Note 2, which revised the definition of bonds for statutory accounting purposes. For further detail on the Company's implementation of the revised definitions, including management judgment in classifying investments as ICO or ABS, please refer to Note 2.

**(II) Preferred Stocks**

The fair values of preferred stocks are determined using prices provided by third party pricing services or broker quotes.

**(III) Common Stocks**

The fair value of unaffiliated common stocks is based on quoted market prices where available and internal estimates. The Company records its investments in investment funds based on the underlying U.S. GAAP audited equity of the investee which is measured at fair value.

**(IV) Mortgage Loans**

The fair value of mortgage loans is determined by a discounted cash flow methodology based on coupon rates, maturity provisions and credit assumptions. Depending on the credit quality and remaining term of the mortgage loan, the discount rate incorporates a spread that typically ranges from 150 to 350 basis points over treasury rates of a comparable tenor.

**(V) Cash, Cash Equivalents and Short-Term Investments**

The carrying values approximate fair value.

**(VI) Contract Loans**

The carrying values approximate fair value.

**(VII) Other Invested Assets**

The fair values of other invested assets in the table above, which consist of investment fund limited partnerships and limited liability companies, collateral loans, residual tranches of collateralized lending obligations, and surplus notes are determined as follows:

***(a) Limited Partnerships and Limited Liability Companies***

As allowed by NAIC SAP, fair values are not assigned to investments accounted for using the equity method. Fair values are determined using net asset values reported by the investee or internal estimates.

***(b) Collateral Loans***

The fair value of collateral loans is determined using interest and principal at a yield of interpolated swaps plus a spread. Due to the call feature, the fair value of collateral loans typically approximates their carrying value.

***(c) Residual Tranches***

Fair values are determined by using quoted market prices, independent pricing services, or internally developed pricing models.

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

***(d) Surplus Notes***

The fair value of surplus notes is obtained from third party independent pricing services.

**(VIII) Derivative Financial Instruments**

The Company's derivative instruments and collateral generally represent those traded in over-the-counter markets for which fair value is estimated by the Company personnel using industry standard models with market observable inputs such as swap yield curves, Secured Overnight Financing Rate (SOFR) basis curves, option volatilities and credit spreads. The Company's derivative collateral payable primarily consists of U.S. treasuries and/or cash equivalents, for which cost approximates fair value.

**(IX) Separate Accounts**

Separate account assets and liabilities are carried at contract value, fair value or if there is no available market, then in accordance with the valuation procedures in the applicable contract. Separate account assets carried at fair value consist of investments recorded at net asset value, adjusted for stable value protection as applicable, and valued using a discounted cash flow methodology based on coupon rates, maturity provisions, and credit assumptions.

Separate account assets carried at contract value were $177,100 and $192,200 as of December 31, 2025 and 2024, respectively.

**(X) Deposit-Type Contracts**

For deposit-type contracts, the carrying value is payable upon demand, net of surrender charges. The account value of deposit-type contracts approximates fair value. Included in deposit-type contract liabilities are funding agreements with the Federal Home Loan Bank of Des Moines (FHLB) as well as secured funding agreements with Valerian Capital (VCAP). The Company manages these funds in an investment spread strategy, consistent with its other investment spread operations. Accordingly, the Company considers these funds policyholder liabilities (see note 11). Fair value of the FHLB funding agreements is equal to outstanding principal plus accrued interest.

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

***(b) Valuation of Financial Instruments held at Fair Value by Fair Value Hierarchy Levels***

The following table presents the Company's assets and liabilities measured at fair value in the statements of admitted assets, liabilities, capital and surplus as of December 31, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| General account investment assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds - Issuer credit obligations | $- | $- | $290 | $290 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds - Asset-backed securities |  | 11000 |  | 11000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stocks |  | 88768 | 67496 | 156264 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stocks |  | 201250 | 38665 | 239915 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative instruments |  | (2484) |  | (2484) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other invested assets |  |  | 30865 | 30865 |
| Separate account assets | $73748 | $- | $664852 | $738600 |
| General account investment liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative instruments | $- | $2770 | $- | $2770 |
| Separate account liabilities | $73748 | $- | $664852 | $738600 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| General account investment assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds | $- | $1521 | $- | $1521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stocks |  | 94929 | 76630 | 171559 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stocks | 21062 | 179731 | 13551 | 214344 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative instruments |  | 17959 |  | 17959 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other invested assets | 26378 | 111 | 42266 | 68755 |
| Separate account assets | 71623 |  | 636755 | 708378 |
| Separate account liabilities | $71623 | $- | $636755 | $708378 |

---

The Company may reclassify assets reported at fair value on a recurring basis between levels of the SSAP No. 100 fair value hierarchy if appropriate based on changes in the quality of valuation inputs available during a reporting period. There are no transfers between Level 1 and Level 2 during the years ended December 31, 2025 and 2024.

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

The following tables summarize the changes in fair value of Level 3 financial instruments measured at fair value for the years ended December 31, 2025 and 2024:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **Total gains or losses** | **Total gains or losses** | | | | | | |
|  | **Balance,**<br>**December 31,**<br>**2024** |<br>**Included in**<br>**net income** |<br>**Included in**<br>**Surplus** |<br><br>**Purchases** |<br><br>**Sales** |<br>**Transfer into**<br>**Level 3** |<br>**Transfer**<br>**out**<br>**of Level 3** | **Transfers<br> to/from**<br>**separate**<br>**account**<br>**assets/liabilities** | **Ending<br> Balance**<br>**December 31,**<br>**2025** |
| Assets: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds - Issuer |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;credit obligations | $- | $- | $- | $475 | $(3350) | $3165 | $- | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $290 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds - Asset- backed securities |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stocks | 13551 |  | (462) | 3325 |  | 22251 |  |  | 38665 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stocks | 76630 |  | (2265) |  | (6869) |  |  |  | 67496 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other invested assets | 42266 | - | (644) | - | (1922) | 25 | (8860) | - | 30865 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Separate account assets | 636755 | 34889 | 15100 | - | (21892) | - | - | - | 664852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $769202 | $34889 | $11729 | $3800 | $(34033) | $25441 | $(8860) | $- | $802168 |
| Liabilities: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Separate account liabilities | 636755 | 34889 | 15100 | - | (21892) | - | - | - | 664852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $636755 | $34889 | $15100 | $- | $(21892) | $- | $- | $- | $664852 |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **Total gains or losses** | **Total gains or losses** | | | | | | |
|  | **Balance,**<br>**December 31,**<br>**2023** |<br>**Included in**<br>**net income** |<br>**Included in**<br>**Surplus** |<br><br>**Purchases** |<br><br>**Sales** |<br>**Transfer into**<br>**Level 3** |<br>**Transfer** out**<br>**of Level 3** | **Transfers<br> to/from**<br>**separate**<br>**account**<br>**assets/liabilities** | **Ending Balance**<br>**December 31,**<br>**2024** |
| Assets: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds | $- | $- | $- | $- | $— | $- | $- | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stocks | 20325 |  | (367) | 12159 | (715) | 478 | (18329) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 13551 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stocks | 84826 |  | 861 |  | (9057) |  |  |  | 76630 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other invested assets | 79903 | - | (783) | 14 | (36868) | - | - | &nbsp;&nbsp;- | 42266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Separate account assets | 620046 | 102242 | (54141) | - | (31392) | - | - | - | 636755 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $805100 | $102242 | $(54430) | $12173 | $(78032) | $478 | $(18329) | $&nbsp;&nbsp;- | $769202 |
| Liabilities: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Separate account liabilities | 620046 | 102242 | (54141) | - | (31392) | &nbsp;&nbsp;- | - | &nbsp;&nbsp;- | 636755 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $620046 | $102242 | $(54141) | $- | $(31392) | $- | $- | $&nbsp;&nbsp;- | $636755 |

---

At the beginning of each reporting period, the Company evaluates whether or not any event has occurred or circumstances have changed that would cause an instrument to be transferred between levels as discussed in Note 3(a). Transfers in and out of Level 3 are primarily the result of using internal valuation models and estimates or reclassifications of invested assets.

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

***Quantitative Information about Level 3 Fair Value Measurements***

The following table provides quantitative information about the significant unobservable inputs used for recurring fair value measurements categorized within Level 3:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Assets/liabilities<br> measured at <br> fair value** | **Valuation<br> technique(s)** | **Unobservable input<br> description** | **Input/range of<br> inputs (weighted<br> average)** |
| Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bond |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuer Credit Obligation | $290 | NAIC Designation | Expected recovery amount | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Industrial | 15477 | Internal model or third party valuation | Yield curve, discount rate | 10-12% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Industrial | 23188 | Cost | Trade price |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred Stock |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Industrial | 67496 | Discounted cash flow model | Yield curve, discount rate | 4.5-6.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other invested assets | 30865 | Impaired value / Cost | Expected recovery amount / Trade Price | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equities | 137026 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Separate accounts: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds | $664852 | Contract value | Contract value | N/A |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Assets/liabilities<br> measured at <br> fair value** | **Valuation<br> technique(s)** | **Unobservable input<br> description** | **Input/range of<br> inputs (weighted<br> average)** |
| Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Industrial | $13551 | Cost/net asset value | Yield curve, discount rate | 12% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred Stock |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Industrial | 76630 | Discounted cash flow model | Yield curve, discount rate | 5.3-6.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other invested assets | 42266 | Cost, pricing vendor, net asset value | Trade price, net asset value | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equities | 132447 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Separate accounts: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds | $636755 | Contract value | Contract value | N/A |

---

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

**(4) Investments**

The carrying value and fair value of investments in bonds and equity securities as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** |
|  |<br>**Carrying value** | **Gross unrealized**<br>**gains** | **Gross unrealized**<br>**losses** | **Estimated fair**<br>**value** |
| Bonds - Issuer credit obligations |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. government obligations | $858068 | $5807 | $(21124) | $842751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds – general obligations (D&G) | 138607 | 5 | (30662) | 107950 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds – special revenue | 1066718 | 850 | (225143) | 842425 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds (unaff.) | 15385540 | 103746 | (496030) | 14993256 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds - bonds issued by funds |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;representing operating entities (unaff.) | 73209 | 819 | (2794) | 71234 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank loans – acquired (unaff.) | 364625 | 810 | (11427) | 354008 |
| Bonds - Asset-backed securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial - self liquidating |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency RMBS - guaranteed | 136545 | 1455 | (5433) | 132567 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency CMBS - guaranteed | 15658 | 54 | (374) | 15338 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency RMBS - not/partially guaranteed | 2536805 | 13736 | (226423) | 2324118 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency CMBS - not/partially guaranteed | 128160 | 1396 | (2542) | 127014 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-agency RMBS (unaff.) | 239374 | 8069 |  | 247443 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-agency CMBS (unaff.) | 1023916 | 6869 | (78675) | 952110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-agency - CLOs/CBOs/CDOs (unaff.) | 2043610 | 7492 | (5057) | 2046045 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other ABS (unaff.) | 2108530 | 26091 | (306352) | 1828269 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-financial - practical expedient |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease-backed securities - (unaff.) | 27114 | 32 | (68) | 27078 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other ABS (unaff.) | 197772 | 2485 | (1154) | 199103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total bonds | $26344251 | $179716 | $(1413258) | $25110709 |
|  |  | **Gross unrealized** | **Gross unrealized** | **Estimated fair** |
|  | **Cost** | **gains** | **losses** | **value** |
| Common stocks | $274856 | $414 | $(10552) | $264718 |
|  |  | **Gross unrealized** | **Gross unrealized** | **Estimated fair** |
|  | **Cost** | **gains** | **losses** | **value** |
| Preferred stocks | $188641 | $394 | $(32771) | $156264 |

---

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** |
|  |<br>**Carrying value** | **Gross**<br>**unrealized**<br>**gains** | **Gross**<br>**unrealized**<br>**losses** |<br>**Estimated fair**<br>**value** |
| Bonds: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. governments | $699265 | $1181 | $(26255) | $674191 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. states, territories and possessions | 8913 |  | (1197) | 7716 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. political subdivision of states, territories |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and possessions | 130963 | 4 | (28011) | 102956 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. special revenue, special assessment |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;obligations | 3353393 | 2211 | (574105) | 2781499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Industrial and miscellaneous unaffiliated | 18096742 | 91734 | (1143224) | 17045252 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hybrid securities | 90151 | 7 | (6909) | 83249 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total bonds | $22379427 | $95137 | $(1779701) | $20694863 |
|  |  | **Gross unrealized** | **Gross unrealized** | **Estimated fair** |
|  | **Cost** | **gains** | **losses** | **value** |
| Common stocks | $244779 | $974 | $(13081) | $232672 |
|  |  | **Gross unrealized** | **Gross unrealized** | **Estimated fair** |
|  | **Cost** | **gains** | **losses** | **value** |
| Preferred stocks | $199764 | $772 | $(28977) | $171559 |

---

As of December 31, 2025 and 2024, bonds with a carrying value of $6,598 and $6,597, respectively, are on deposit with various state insurance departments to meet regulatory requirements, which is approximately 0.02% of admitted assets.

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

The following tables analyze the Company's investment positions with unrealized losses segmented by type of security and period of continuous unrealized loss as of December 31, 2025 and 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Less than 12 months** | **Less than 12 months** | **Greater than 12 months** | **Greater than 12 months** | **Total** | **Total** |
|  |<br>**Fair Value** | **Unrealized**<br>**losses** |<br>**Fair Value** | **Unrealized**<br>**losses** |<br>**Fair Value** | **Unrealized**<br>**losses** |
| Bonds: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuer credit obligations |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. government | $392014 | $(6315) | $228084 | $(14809) | $620098 | $(21124) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Municipal | 2433 | (117) | 925476 | (255688) | 927909 | (255805) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate | 2351434 | (95345) | 4151718 | (400685) | 6503152 | (496030) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign governments / Sovereigns |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All other | 143441 | (7656) | 158939 | (6565) | 302380 | (14221) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset-backed securities |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage-backed |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;securities | 204607 | (3262) | 1338246 | (228594) | 1542853 | (231856) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage-backed |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;securities | 162624 | (2315) | 612042 | (79276) | 774666 | (81591) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CLO / Other structured ABS | 884573 | (6798) | 1037909 | (305833) | 1922482 | (312631) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total bonds | $4141126 | $(121808) | $8452414 | $(1291450) | $12593540 | $(1413258) |
| Common stocks | $24804 | $(196) | $15149 | $(10356) | $39953 | $(10552) |
| Preferred stocks | $28128 | $(1888) | $88768 | $(30883) | $116896 | $(32771) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **Less than 12 months** | **Less than 12 months** | **Greater than 12 months** | **Greater than 12 months** | **Total** | **Total** |
|  |<br>**Fair Value** | **Unrealized**<br>**losses** |<br>**Fair Value** | **Unrealized**<br>**losses** |<br>**Fair Value** | **Unrealized**<br>**losses** |
| Bonds: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. governments | $311908 | $(19254) | $59794 | $(7001) | $371702 | $(26255) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. states, territories and possessions |  |  | 7716 | (1197) | 7716 | (1197) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. political subdivision of states, |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;territories and possessions | 512 | (3) | 102089 | (28008) | 102601 | (28011) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. special revenue, special assessment |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;obligations | 615155 | (11056) | 2145673 | (563049) | 2760828 | (574105) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Industrial and miscellaneous unaffiliated | 2691337 | (144672) | 7792131 | (998552) | 10483468 | (1143224) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hybrid securities | 26431 | (677) | 44542 | (6232) | 70973 | (6909) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total bonds | $3645343 | $(175662) | $10151945 | $(1604039) | $13797288 | $(1779701) |
| Common stocks | $190 | $(914) | $25322 | $(12167) | $25512 | $(13081) |
| Preferred stocks | $- | $(1002) | $94928 | $(27975) | $94928 | $(28977) |

---

These securities are included in the Company's regular evaluation, on a security-by-security basis, of its investment holdings in accordance with its impairment policy in order to evaluate whether such securities are OTTI. Of all the debt securities in an unrealized loss position as of December 31, 2025 and 2024, 97.3% and 96.8% of the securities are rated investment grade, and 2.7% and 3.2% of the securities are rated as noninvestment grade. Investment grade is defined as those securities rated a "1" or "2", and noninvestment grade securities are defined as "3" through "6" by the Securities Valuation Office of the NAIC.

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

The Company believes the unrealized loss position is not necessarily predictive of the ultimate performance of these securities, and with respect to fixed maturity securities, it has the ability and intent to hold until the earlier of the recovery in value, or until maturity, and with respect to equity securities, it has the ability and intent to hold until the recovery in value. Evaluations of future OTTI will depend primarily on economic fundamentals, issuer performance, changes in collateral valuation, changes in interest rates, and changes in credit spreads. If economic fundamentals and any of the above factors continue to deteriorate, OTTI may be incurred in upcoming periods.

The Company recognized total realized losses for OTTI of $37,354 and $63,669 during 2025 and 2024, respectively. The Company recognized $0 and $0 realized losses for OTTI of asset-backed securities during 2025 and 2024, respectively.

There were no asset-backed securities as of December 31, 2025 and 2024, with a recognized OTTI for which the present value of cash flows expected to be collected was less than the amortized cost basis of the securities at the time of impairment. Expected maturities differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties. The carrying value and fair value of bonds as of December 31, 2025 by contractual maturity are as follows:

---

| | | |
|:---|:---|:---|
|  | **Carrying value** | **Fair Value** |
| Due in one year or less | $489205 | $488860 |
| Due in one year through five years | 4264810 | 4251629 |
| Due in five years through ten years | 5197711 | 5139099 |
| Due after ten years | 7935042 | 7332036 |
|  | 17886768 | 17211624 |
| Mortgage-backed and other asset-backed | 8457483 | 7899085 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $26344251 | $25110709 |

---

The table below indicates the amount of FHLB stock purchased/owned, which is 0.53% and 0.54% of admitted assets as of December 31, 2025 and 2024, respectively:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| FHLB stock purchased/owned as part of the agreement: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Membership stock - Class A | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Membership stock - Class B | 10000 | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Activity stock | 191250 | 166500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess stock | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aggregate total | $201250 | $176500 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Membership stock (Class A and B) eligible** | | | | | |
| **for redemption** | <br>**Current**<br>**year total** | <br>**Not eligible for**<br>**redemption** | <br>**Less than**<br>**6 months** | **6 months to**<br>**less than 1**<br>**year** | <br>**3 to 5 years** |
| Class A | $- | $- | $- | $- | $- |
| Class B | 10000 |  |  |  | 10000 |

---

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

***Subprime Mortgage Related Risk Exposure***

The Company does not have any direct exposure through investments in subprime mortgage loans.

***Reverse Repurchase Agreements Transactions Accounted for as Secured Lending***

The Company is authorized to enter into reverse repurchase agreements pursuant to the Company's investment guidelines. Each reverse repurchase agreement must be evidenced by a MRA or other written agreement between the Company and its counterparty. Under the terms of an MRA, the Company purchases investments from the counterparty and the counterparty agrees to repurchase the same, or similar, investments back from the Company on a specified date at a specified price. On the maturity date, the Company may elect to enter into a new reverse repurchase agreement with the same counterparty. The Company's decision to do so will be dependent on the Company's liquidity needs and its assessment of the counterparty and collateral's performance.

In order to mitigate the risk of a loss in value of the collateral securities, the Company requires its counterparties to provide assets in excess of the loan amount, otherwise known as overcollateralization. The amount of overcollateralization is up to the Company's discretion, but will not be less than 102%. Each of the Company's reverse repurchase agreements has a short duration, which further mitigates potential financial risks associated with these transactions. The Company's reverse repurchase agreements are bilateral and the Company does not enter into tri-party reverse repurchase agreements.

The following provides information related to reverse repurchase activity for 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** |
|  | **First Quarter** | **Second Quarter** | **Third Quarter** | **Fourth Quarter** |
| Original flow and residual maturity |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Maximum amount |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One week to one month | $- | $- | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One to three months |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Three months to one year | 114842 | 114842 | 113250 | 113250 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ending balance |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One week to one month | $- | $- | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One to three months |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Three months to one year | 114842 | 114842 | 113250 | 113250 |
| Fair value of securities acquired under repo |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Maximum amount | $172218 | $172211 | $161000 | $161000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ending balance | 172218 | 172211 | 161000 | 161000 |

---

All reverse repurchase agreements were considered secured borrowing in 2025 for which all securities acquired under these arrangements were NAIC 1 rated instruments.

***Repurchase Agreements Transactions Accounted for as Secured Borrowing***

The Company is authorized to enter into repurchase agreements pursuant to the Company's investment guidelines. Each repurchase agreement must be evidenced by a MRA or other written agreement between the Company and its counterparties. Under the terms of the MRAs, the Company sells investments to the counterparty and the Company agrees to repurchase the same or similar investments back from the counterparty on a specific date at a specified price. On the maturity date, the

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

Company may elect to enter into a new repurchase agreement with the same counterparty. The Company's decision to do so is dependent on the Company's liquidity needs and its assessment of the creditworthiness of the counterparty and the collateral's performance. The Company's repurchase agreements are bilateral and the Company does not enter into tri-party repurchase agreements. The Company had no outstanding repurchase agreement transactions accounted for as secured borrowing as of December 31, 2025 and 2024.

The following provides information related to repurchase activity for 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** |
|  | **First Quarter** | **Second Quarter** | **Third Quarter** | **Fourth Quarter** |
| Original flow and residual maturity |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maximum amount |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One week to one month | $- | $24969 | $- | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One to three months | 204256 | 225391 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Three months to one year |  | 183901 | 152214 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ending balance |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One week to one month | $- | $24969 | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One to three months | 204256 | 225391 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Three months to one year |  | 183901 | 152214 |  |
| Fair value of securities provided under repo |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maximum amount | $196593 | $428171 | $146871 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ending balance | 196593 | 428171 | 146871 |  |
| Carrying value of securities provided under repo |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maximum amount | $202045 | $431358 | $146105 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ending balance | 202045 | 431358 | 146105 |  |

---

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

**(5) Mortgage Loans**

The Company purchases mortgages that are collateralized by commercial real estate and residential real estate. The Company had no commercial mortgages with interest due greater than 30 days past due and 75 residential mortgages with $5,616 in interest due greater than 30 days past due at the end of 2025. The Company had 4 commercial mortgages with $748 interest due greater than 30 days past due and 72 residential mortgages with $3,383 in interest due greater than 30 days past due at the end of 2024. Refer to the following table for further detail on the aging of the past due mortgages as of December 31, 2025 and 2024.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** |
|  | | **Residential** | **Residential** | **Commercial** | **Commercial** | | |
|  | <br>**Farm** | **Insured** | **All Other** | **Insured** | **All Other** | <br>**Mezzanine** | <br>**Total** |
| Recorded Investment (All) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current | $- | $- | $622988 | $- | $3527095 | $86603 | $4236686 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30-59 Days Past Due |  |  | 11206 |  |  |  | 11206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60-89 Days Past Due |  |  | 4525 |  |  |  | 4525 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90-179 Days Past Due |  |  | 10742 |  |  |  | 10742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;180+ Days Past Due |  |  | 27843 |  |  |  | 27843 |
| Accruing Interest 90-179 Days Past Due |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recorded Investment |  |  | 10742 |  |  |  | 10742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest Accrued |  |  | 907 |  |  |  | 907 |
| Accruing Interest 180+ Days Past Due |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recorded Investment |  |  | 27843 |  |  |  | 27843 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest Accrued |  |  | 3925 |  |  |  | 3925 |
| Interest Reduced |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recorded Investment |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of Loans |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Percent Reduced |  |  |  |  |  |  |  |
| Participant or Co-lender in a Mortgage |  |  |  |  |  |  |  |
| Loan Agreement |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recorded Investment | - | - | 677304 | - | - | - | 677304 |
| Taxes, Assessments, and amounts advanced not included in mortgage loan total | $- | $- | $- | $- | $- | $- | $- |

---

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
|  | | **Residential** | **Residential** | **Commercial** | **Commercial** | | |
|  | **Farm** | **Insured** | **All Other** | **Insured** | **All Other** | **Mezzanine** | **Total** |
| Recorded Investment (All) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current | $- | $- | $660977 | $- | $3027487 | $101720 | $3790184 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30-59 Days Past Due |  |  | 15426 |  | 47225 |  | 62651 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60-89 Days Past Due |  |  | 3587 |  |  |  | 3587 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90-179 Days Past Due |  |  | 7447 |  |  |  | 7447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;180+ Days Past Due |  |  | 31625 |  | 22530 | 389 | 54544 |
| Accruing Interest 90-179 Days Past Due |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recorded Investment |  |  | 7447 |  |  |  | 7447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest Accrued |  |  | 411 |  |  |  | 411 |
| Accruing Interest 180+ Days Past Due |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recorded Investment |  |  | 31625 |  | 22530 | 389 | 54544 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest Accrued |  |  | 2567 |  | 251 | 49 | 2867 |
| Interest Reduced |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recorded Investment |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of Loans |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Percent Reduced |  |  |  |  |  |  |  |
| Participant or Co-lender in a Mortgage |  |  |  |  |  |  |  |
| Loan Agreement |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recorded Investment | - | - | 719062 | - | - | - | 719062 |
| Taxes, Assessments, and amounts advanced not included in mortgage loan total | $- | $- | $- | $- | $- | $- | $- |

---

The aggregate ratio of amounts loaned to the fair value of collateral (loan-to-value ratio) for commercial mortgage loans originated during 2025 and 2024 were 55.3% and 49.5% with a maximum of 71.7% and 77.4% for any single loan during both 2025 and 2024, respectively. In circumstances where management has deemed it probable that the Company will be unable to collect all contractual principal and interest on a mortgage loan, a valuation allowance is established to reduce the statement value of the mortgage loan to its net realizable value. In 2025 and 2024, the Company recorded a valuation allowance on residential mortgages of $6,572 and $6,996 at December 31, 2025 and 2024, respectively. Commercial and residential mortgages have interest rates ranging from 2.5% to 14.5% per annum. During 2025 and 2024, the Company did not reduce coupon rates on any outstanding mortgages. The Company has accrued interest on mortgages of $33,209 and $25,999 at December 31, 2025 and 2024, respectively.

The tables below provide additional information regarding commercial and residential mortgage loans:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| **Collateral Type** | **Carrying value** | **Percent of total** | **Carrying value** | **Percent of total** |
| Multifamily | $1391954 | 32.4% | $1263349 | 32.2% |
| Other | 777149 | 18.1% | 547751 | 14.0% |
| Industrial | 809941 | 18.9% | 826806 | 21.1% |
| Office buildings | 406971 | 9.5% | 335820 | 8.6% |
| Retail | 227683 | 5.3% | 225625 | 5.8% |
| Residential | 677304 | 15.8% | 719062 | 18.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total before allowance | 4291002 | 100.0% | 3918413 | 100.0% |
| Valuation allowance | (6572) |  | (6996) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $4284430 |  | $3911417 |  |

---

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| **Geographic region** | **Carrying value** | **Percent of total** | **Carrying value** | **Percent of total** |
| East | $671562 | 15.7% | $654914 | 16.7% |
| Midwest | 704657 | 16.4% | 591439 | 15.1% |
| South | 1351144 | 31.5% | 1136861 | 29.0% |
| West | 1563639 | 36.4% | 1524471 | 38.9% |
| Foreign | - | -% | 10728 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $4291002 | 100.0% | $3918413 | 100.0% |

---

The Company uses an internal rating system based upon the NAIC Risk Based Capital ("RBC") methodology as its primary method of monitoring credit quality. Along with specific loan terms, two key management assumptions are required including the risk rating of the loan (our current rating system AAA- highest quality to BB- low quality (watch) and then D- default or F-foreclosure) and estimated spreads for these loans over the U.S. Treasury yield curve corresponding to the remaining maturity. Spreads are updated monthly and loans are reviewed and rated annually with adjustments should significant changes occur during the year.

Our determination of each loan's risk rating as well as selection of the credit spread requires significant judgment and the current performance characteristics of the loan. A lower risk rating, as well as an increase in spreads would result in a decrease in discounted cash flows, and accordingly a lower fair value of the loan. We will then review the asset collateral value to determine the market value of the asset and therefore our loan value. This would involve either an outside appraisal of the property or an internal valuation based upon discussions with brokers and or appraisers in the immediate market and then desktop valuation of the asset using the direct capitalization approach to the value of the collateral.

The following table illustrates the Company's commercial mortgage loan portfolio categorized by the five risk cohorts established for risk-based capital which take into consideration loan-to-value and debt service coverage ratios to evaluate the relative risk of each commercial mortgage. Also provided is the equivalent Moody's designation:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | | **December 31, 2025** | **December 31, 2025** | | |
|  | <br>**AAA/AA/A** | <br>**BBB** | <br>**BB** | <br>**B** | **CCC and**<br>**lower** | <br>**Total** |
| Commercial loans | $1384804 | $1804562 | $324508 | $57713 | $42111 | $3613698 |
|  |  |  | **December 31, 2024** | **December 31, 2024** |  |  |
|  |  |  |  |  | **CCC and** |  |
|  | **AAA/AA/A** | **BBB** | **BB** | **B** | **lower** | **Total** |
| Commercial loans | $1224731 | $1635030 | $275251 | $26079 | $38260 | $3199351 |

---

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

**(6) Net Investment Income**

Major categories of net investment income for the years ended December 31, 2025 and 2024, are summarized as follows

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Income (loss): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds | $1469262 | $1123726 |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock (unaffiliated) | 13930 | 12428 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock (unaffiliated) | 25475 | 24587 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans | 214027 | 184645 |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate | (970) | 126 |
| &nbsp;&nbsp;&nbsp;&nbsp;Policy Loans | 495 | 463 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 245493 | 241729 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative instruments | 111336 | 119195 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ceded investment income | (169854) | (176794) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other invested assets | 70125 | 122340 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 70876 | 37139 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross investment income | 2050195 | 1689584 |
| Investment expense | (40861) | (22235) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income before amortization of net |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IMR gains | 2009334 | 1667349 |
| Amortization of IMR gains | 9273 | 6338 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment income | $2018607 | $1673687 |

---

The cumulative amount of interest that has been paid-in-kind and included in the principal balance of investments in bonds at December 31, 2025 and 2024 was $38,697 and $32,817, respectively. The Company has investments in trust notes included in bonds that allow the deferral of interest. Total interest deferred related to trust notes included in investment income due and accrued at December 31, 2025 and 2024 was $260,714 and $230,485, respectively.

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Net realized gains/(losses): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross gains: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds | $5745 | $16949 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives | 200 | 9117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other invested assets | 1456 | 1444 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | - | 96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross gains | 7401 | 27606 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross (losses): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds | (29987) | (39734) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives | (5914) | (5805) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other invested assets | (4865) | (17196) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (18354) | (18888) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross losses | (59120) | (81623) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts assumed/ceded | 7191 | 5281 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized gains/(losses) | (44528) | (48736) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gains/(losses) allocated to IMR | 227 | 6546 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gains/(losses) allocated to AVR | (44755) | (55282) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized gains/(losses) | (44528) | (48736) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gains/(losses) allocated to AVR | (44755) | (55282) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less tax (benefit) expense | (9399) | (11609) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Report net realized gains/(losses) | $(35356) | $(43673) |

---

Proceeds from sales of investments in bonds (excluding maturity proceeds) during 2025 and 2024 were $223,633 and $1,402,946, respectively. Gross losses of $3,298 in 2025 and $15,894 in 2024 and gross gains of $4,577 in 2025 and $7,249 in 2024 were realized on those sales.

**(7) Derivative Instruments**

The Company accounts for its interest rate swaps/forwards in accordance with SSAP No. 86, Derivatives (SSAP No. 86) (see note 2) and financial options under the Iowa Prescribed Method in connection with the permitted practice discussed further in Note 2 of the statutory financial statements. SSAP No. 86 requires derivative instruments used in hedging transactions that meet the prescribed criteria of a highly effective hedge to be valued and reported in a manner consistent with the hedged asset or liability (referred to as hedge accounting).

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

***(a) Financial Options***

Financial options compensate the Company for any market appreciation over the strike price, and hedges or offsets certain insurance obligations that also increase when market appreciation exceeds a minimum level. The Company generally limits its selection of counterparties that are obligated under these derivative contracts to those with an "A" credit rating or above. Purchasing such agreements from financial institutions with long standing performance records minimizes the risk of counterparty default.

***(b) Interest Rate Swaps***

The Company has utilized interest rate swaps to hedge interest rate risk. Those swaps were considered to be economic hedges. The Company generally limits its selection of counterparties that are obligated under these derivative contracts to those with an "A" credit rating or above. Purchasing such agreements from financial institutions with long standing performance history minimizes the risk of counterparty default. Changes in fair value of these instruments are reported as a change in unrealized capital gains or losses until maturity or termination of the contract, at which time a realized capital gain or loss is recognized. In 2025, the Company entered into a $311,000 floating-to-fixed interest rate swap to hedge floating interest rates associated with certain private placement obligations (bonds), and the Company is utilizing hedge accounting as of December 31, 2025. As of December 31, 2025, the swap remained outstanding and, consistent with the hedged bonds, was carried at amortized cost, with a carrying value of $0 and a fair value of ($1,213). Income of ($178) was recorded in 2025 related to this swap.

In 2024, the Company entered into a $50,000 floating-to-fixed interest rate swap to hedge floating interest rates associated with certain collateralized lending obligations (bonds), and the Company continues to utilize hedge accounting as of December 31, 2025. This swap also remained outstanding as of December 31, 2025 and continued to be carried at amortized cost consistent with the hedged bonds. As of December 31, 2025, the swap had a carrying value of $0 and a fair value of $1,031. Income of ($145) was recorded in 2025 related to this swap.

***(c) Currency Swaps, FX Forwards, and Futures***

The Company utilizes currency swaps, FX forwards or futures agreements to reduce exposure to exchange rate risk on nondollar investments. The strategy the Company uses is to provide the funding for the investment they sell in U.S. dollars and buy the underlying foreign currency in the spot market. The Company also enters into a forward contract with a counterparty, usually a one-, three- or six-month transaction to sell the foreign currency and buy U.S. dollars at the forward exchange rate. The notional amount of the hedge is equal to the book value of the security. At the maturity date of the forward contract, the transaction is terminated by the Company making or receiving a payment in U.S. dollars to/from the counterparty based upon movement in the currency. The Company then hedges the book value of the position by entering into a new forward contract. This process continues until the maturity or sale of the security. Changes in fair value of these instruments are reported as a change in unrealized capital gains or losses until maturity or termination of the contract, at which time a realized capital gain or loss is recognized.

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

A summary of derivative asset and liability positions held by the Company as of December 31, 2025 and 2024, including carrying value and estimated fair values, appears below:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Number of**<br>**contracts** | **Carrying**<br>**value** | **Book**<br>**Value** | **Estimated**<br>**fair value** | **Number of**<br>**contracts** | **Carryin**g<br>**value** | **Book**<br>**Value** | **Estimated**<br>**fair value** |
| Financial options | 3213 | $171062 | $171062 | $449266 | 2707 | $163785 | $163785 | $375645 |
| Foreign currency forward | 7 | (3138) |  | (3138) | 11 | 13358 |  | 13358 |
| Foreign currency swaps | 4 | (2117) | (22) | (2117) | 4 | 4601 | (30) | 4601 |
| Interest rate swaps | 3 | - | - | (182) | 1 | - |  | (479) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivatives | 3227 | $165807 | $171040 | $443829 | 2723 | $181744 | $163755 | $393125 |

---

The effects of the Company's use of derivative instruments on the statements of operations and changes in capital and surplus for the years ended December 31, 2025 and 2024 were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | **December 31, 2025** | | | **December 31, 2024** | |
|  | **Change in**<br>**unrealized**<br> **capital gains**<br>**(losses)** |<br>**Net realized**<br>**capital gains**<br>**(losses)** |<br>**Net investment**<br>**income** | **Change in**<br>**unrealized**<br>**capital gains**<br>**(losses)** |<br>**Net realized**<br>**capital gains**<br>**(losses)** |<br>**Net investment**<br>**income** |
| Financial options - Asset | $- | $- | $110911 | $- | $- | $118120 |
| Foreign currency forward - Both | (16496) |  |  | 19188 |  |  |
| Foreign currency swaps - Both | (6726) |  | 748 | 314 |  | 1075 |
| Interest rate swaps - Both | - | - | (323) | (479) | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Total derivatives | $(23222) | $- | $111336 | $19023 | $- | $119195 |

---

The Company ceded net realized gains totaling $25,126 and $38,626 during 2025 and 2024, respectively. The Company ceded option amortization expense totaling $16,029 and $19,848 at December 31, 2025 and 2024, respectively. The Company received cash collateral related to derivative transactions totaling $366,619 and $323,850 at December 31, 2025 and 2024, respectively. When collateral is received, it is invested and included in the statements of admitted assets, liabilities, capital and surplus in derivative collateral liabilities.

The Company held off-balance-sheet securities collateral related to derivative positions at both December 31, 2025 and 2024. Collateral is received from counterparties when the value of the related derivative positions is in the Company's favor and is maintained in segregated custodial accounts. Fair value of collateral held totaled $93,975 at December 31, 2025 and $53,017 at December 31, 2024. The collateral consisted of investment-grade fixed-income securities provided by the Company's derivative counterparties.

**EQUITRUST LIFE INSURANCE COMPANY**<br> Notes to Statutory Financial Statements<br> Years ended December 31, 2025 and 2024<br> (In thousands of dollars, except per share data)

A summary of off-balance-sheet collateral held by counterparty is presented below (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | <br>**Collateral Type** | **Related Derivative**<br>**Types** | **Fair Value of**<br>**Collateral Held** |
| **Counterparty:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;JPMorgan Chase | Investment-grade securities | Financial Options | $70568 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank of America | Investment-grade securities | Financial Options | 23407 |
|  |  |  | $93975 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | <br>**Collateral Type** | **Related Derivative**<br>**Types** | **Fair Value of**<br>**Collateral Held** |
| **Counterparty:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank of America | Investment-grade securities | Financial Options | $53017 |
|  |  |  | $53017 |

---

These collateral amounts reduce the Company's credit exposure to counterparties but do not eliminate the risk of counterparty nonperformance.

The Company uses derivatives for hedging risks related to equity markets, interest rates, and foreign exchange rates and the details for those uses and the parameters around the Company's management of derivatives is further documented in the Company's Derivative Use Plan.

The Company is exposed to limited counterparty credit risk (the risk that the counterparty fails to perform under the terms of the derivative contract). The Company purchases derivatives from multiple counterparties and evaluates the creditworthiness of the counterparties at the time of purchase. While the contracts require the Company to pay an upfront premium, the counterparties are required to pledge collateral to the Company per the terms of the collateral support documents which further mitigates potential credit risk. The credit exposure is the fair value of the derivative instruments as of December 31, 2025 and 2024, as disclosed above. Cash is required at the initiation of the contract and contracts are settled for value at termination.

**EQUITRUST LIFE INSURANCE COMPANY**<br> Notes to Statutory Financial Statements<br> Years ended December 31, 2025 and 2024<br> (In thousands of dollars, except per share data)

**(8) Federal Income Taxes**

Federal income taxes are calculated and presented in accordance with SSAP No. 101, Income Taxes, current income taxes consist of the following major components:

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2025** | **2024** |
| Current income tax: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal | $145284 | $117026 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 145284 | 117026 |
| Federal income tax expense (benefit) on net capital gains | (9351) | (10235) |
| Other | 4360 | 14431 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total federal and foreign income taxes expense (benefit) | $140293 | $121222 |

---

The provision for federal income taxes incurred is different from that which would be obtained by applying the statutory federal income tax rate to income before income taxes including realized capital gains and losses. The significant items causing this difference for the years ended December 31, 2025, and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Amount** | **Statutory 21% tax<br> effect** | **Effective tax rate** |
| Income before taxes (including realized capital gains/(losses)) | $544815 | $114411 | 21.00% |
| Investment related | (28811) | (6050) | (1.11)% |
| Effects of reinsurance in surplus | (85647) | (17986) | (3.30)% |
| Wholly owned disregarded entities | (8811) | (1850) | (0.34)% |
| Other tax adjustments | (14657) | (3078) | (0.56)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 406889 | 85447 | 15.68% |
| Federal income taxes incurred |  | 140293 | 25.75% |
| Change in net deferred income taxes |  | $(54847) | (10.07)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total statutory income taxes |  | 85446 | 15.68% |

---

The most significant gross differences between the enacted 21% tax rate and the effective tax rate relates to the 2023 Hannover and RGA reinsurance treaties. The Statutory profit emergence has been reversed for tax in the amounts of ($42,311) and ($44,243) for Hannover and RGA, respectively. Since the 2023 Surplus Gain was fully included in the 2023 taxable income, the 2025 rate reconciliation reflects reversal of the 2025 Statutory profit emergence.

Permanent adjustments related to tax-exempt interest and IMR for the 2025 tax year contributed gross differences of ($28,408) between the enacted and effective tax rates.

**EQUITRUST LIFE INSURANCE COMPANY**<br> Notes to Statutory Financial Statements<br> Years ended December 31, 2025 and 2024<br> (In thousands of dollars, except per share data)

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |<br>**Amount** | **Statutory 21% tax**<br>**effect** |<br>**Effective tax rate** |
| Income before taxes (including realized capital gains/(losses)) | $319272 | $67047 | 21.00% |
| Investment related | (25575) | (5371) | (1.68)% |
| Correction of prior period error | (58301) | (12243) | (3.83)% |
| Effects of reinsurance in surplus | 73112 | 15354 | 4.81% |
| Wholly owned disregarded entities | (5997) | (1259) | (0.39)% |
| Other tax adjustments | (1695) | (356) | (0.11)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 300816 | 63171 | 19.79% |
| Federal income taxes incurred |  | $121222 | 37.97% |
| Change in net deferred income taxes |  | (58051) | (18.18)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total statutory income taxes |  | $63171 | 19.79% |

---

The Company corrected an error in its tax reserves as of December 31, 2023, which were understated by $56,353. The 2023 resulting federal income tax liability has been recorded separately and included in the December 31, 2024, federal income tax liabilities.

The components of the net deferred tax asset (liability) at December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | | **Change** | |
|  | **Ordinary** | **Capital** | **Total** | **Ordinary** | **Capital** | **Total** | **Ordinary** | **Capital** | **Total** |
| Gross deferred tax assets | $192970 | $41922 | $234892 | $147192 | $37732 | $184924 | $45778 | $4190 | $49968 |
| Statutory valuation allowance adjustment | - | - | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted gross deferred tax assets | 192970 | 41922 | 234892 | 147192 | 37732 | 184924 | 45778 | 4190 | 49968 |
| Deferred tax assets nonadmitted | - | - | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal - (gross admitted deferred tax asset) | 192970 | 41922 | 234892 | 147192 | 37732 | 184924 | 45778 | 4190 | 49968 |
| Deferred tax liabilities | 126854 | 29579 | 156433 | 120442 | 46427 | 166869 | 6412 | (16848) | (10436) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net admitted deferred tax asset (liability) | $66116 | $12343 | $78459 | $26750 | $(8695) | $18055 | $39366 | $21038 | $60404 |

---

**EQUITRUST LIFE INSURANCE COMPANY**<br> Notes to Statutory Financial Statements<br> Years ended December 31, 2025 and 2024<br> (In thousands of dollars, except per share data)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **Change** | **Change** | **Change** |
|  | **Ordinary** | **Capital** | **Total** | **Ordinary** | **Capital** | **Total** | **Ordinary** | **Capital** | **Total** |
| Federal income taxes paid in prior years recoverable through loss carrybacks | $- | $7325 | $7325 | $- | $- | $- | $- | $7325 | $7325 |
| Adjusted gross deferred tax assets expected to be realized after application of the threshold limitation | 85783 | 5018 | 90801 | 62130 | 29204 | 91334 | 23653 | (24186) | (533) |
| Adjusted gross deferred tax assets expected to be realized following the balance sheet date | 85783 | 5018 | 90801 | 62130 | 29204 | 91334 | 23653 | (24186) | (533) |
| Adjusted gross deferred tax assets allowed per limitation threshold | XXX | XXX | 447138 | XXX | XXX | 410583 | XXX | XXX | 47663 |
| Adjusted gross deferred tax assets offset by gross deferred tax liabilities | 107187 | 29579 | 136766 | 85062 | 8528 | 93590 | 22125 | 21051 | 43176 |
| Deferred tax assets admitted as the result of application of SSAP 101 | $192970 | $41922 | $234892 | $147192 | $37732 | $184924 | $45778 | $4190 | $49968 |

---

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Ratio percentage used to determine recovery period and threshold limitation amount | 879.31% | 948.73% |
| Amount of adjusted capital and surplus used to determine recovery period and threshold limitation above | $2980923 | $3035375 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **Change** | **Change** |
|  | **Ordinary** | **Capital** | **Ordinary** | **Capital** | **Ordinary** | **Capital** |
| Adjusted gross deferred tax assets | $192970 | $41922 | $147192 | $37732 | $45778 | $4190 |
| Percentage of adjusted gross deferred tax assets by tax character attributable to the impact of tax planning strategies | 0.0% | 2.1% | 0.0% | 0.0% | 0.0% | 2.1% |
| Net admitted adjusted gross deferred tax assets | $192970 | $41922 | $147192 | $37732 | $45778 | $4190 |
| Percentage of net admitted adjusted gross deferred tax assets by tax character admitted because of the impact of tax planning strategies | 0.0% | 2.1% | 0.0% | 0.0% | 0.0% | 2.1% |

---

The Company does not have deferred tax liabilities that it has not recognized.

**EQUITRUST LIFE INSURANCE COMPANY**<br> Notes to Statutory Financial Statements<br> Years ended December 31, 2025 and 2024<br> (In thousands of dollars, except per share data)

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2025, and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31** | **December 31** | **December 31** |
|  | **2025** | **2024** | **Change** |
| Deferred tax assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ordinary: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Policyholder reserves | $134873 | $99132 | $35741 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments | 19977 | 12543 | 7434 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred acquisition costs | 36141 | 34012 | 2129 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed assets | 586 | 1502 | (916) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables-nonadmitted |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other (including items <5% of total ordinary tax assets) | 1393 | 3 | 1390 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 192970 | 147192 | 45778 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admitted ordinary deferred tax assets | 192970 | 147192 | 45778 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments | 41805 | 37527 | 4278 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate | 117 | 206 | (89) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other (including items <5% of total ordinary tax assets) | - | (1) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 41922 | 37732 | 4190 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admitted capital deferred tax assets | 41922 | 37732 | 4190 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admitted deferred tax assets | $234892 | $184924 | $49968 |
| Deferred tax liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ordinary: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments | $57259 | $41312 | $15947 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Policyholder reserves | 69595 | 79130 | (9535) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other (including items <5% of total ordinary tax assets) | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 126854 | 120442 | 6412 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments | 29579 | 46427 | (16848) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other (including items <5% of total ordinary tax assets) | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 29579 | 46427 | (16848) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities | 156433 | 166869 | (10436) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net deferred tax assets/liabilities | $78459 | $18055 | $60404 |

---

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements<br> Years ended December 31, 2025 and 2024<br> (In thousands of dollars, except per share data)

The change in net deferred income taxes is comprised of the following (this analysis is exclusive of nonadmitted assets as the change in nonadmitted assets is reported separately from the change in net deferred income taxes in the surplus section of the annual statement):

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31** | **December 31** | **December 31** |
|  | **2025** | **2024** | **Change** |
| Total deferred tax assets | $234892 | $184924 | $49968 |
| Total deferred tax liabilities | 156433 | 166869 | (10436) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net deferred tax assets/(liabilities) | 78459 | 18055 | 60404 |
| &nbsp;&nbsp;&nbsp;&nbsp;Statutory valuation allowance adjustment | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Net deferred tax assets/(liabilities) after valuation allowance | $78459 | $18055 | $60404 |
| Tax effect of unrealized (gains)/losses |  |  | $(5557) |
| Statutory valuation allowance adjustment allocated to unrealized |  |  |  |
| Other intraperiod allocation of deferred tax movement |  |  | - |
| Change in net deferred income tax ((expense)/benefit) |  |  | $54847 |

---

At December 31, 2025 and 2024, the Company did not have any operating loss carryforwards, or CAMT credit carryforwards.

The Company has no amounts or deposits admitted pursuant to Section 6603 of the Internal Revenue Code.

The following capital gain taxes were incurred by the Company in the current and prior years that will be available for recoupment in the event of future net capital losses:

2025: $687

2024: $6,638

2023: -

The Company has reviewed open tax years for the major jurisdictions and has concluded that there is no significant federal income tax liability resulting from uncertain tax positions. As of December 31, 2025, the calendar years 2018 through 2024 remain open for examination by the IRS. The IRS audits for tax returns prior to 2017 are closed.

The Corporation Alternative Minimum Tax ("CAMT"), imposes a 15% minimum tax on the adjusted financial statement income of large corporations for taxable years beginning after December 31, 2022. The CAMT generally applies to large corporations with three-year average annual financial statement income exceeding $1 billion. The Company has determined that it will not be subject to CAMT based on the financial income average under $1 billion.

The Company has determined that all deferred tax assets are recoverable and therefore a valuation allowance is not needed.

Tax Law Change H.R.1, also referred to as the "One Big Beautiful Bill Act" (the "Tax Act of 2025"), was enacted into law on July 4, 2025. The Company determined that the One Big Beautiful Bill did not have a material impact on its overall financial position for the year ended December 31, 2025.

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements<br> Years ended December 31, 2025 and 2024<br> (In thousands of dollars, except per share data)

**(9) Reinsurance**

EquiTrust is involved in the assumption and cession of life insurance risk through various coinsurance agreements with former affiliated and nonaffiliated companies. The effects of these agreements on the components of net income in the accompanying statements of operations for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Assumed** | **Ceded** | **Assumed** | **Ceded** |
| Premiums | $3059 | $891421 | $3708 | $514457 |
| Annuity and surrender benefits | 46561 | 583706 | 60441 | 644631 |
| Increase (decrease) in policy reserves | (34080) | 196283 | (44172) | 686386 |

---

To the extent that any reinsuring companies are unable to meet obligations under the aforementioned reinsurance agreements, the Company would remain liable for business ceded.

Effective October 1, 2023, the Company entered into an indemnity reinsurance agreement with Hannover Life Reassurance of America (Bermuda) Ltd. for specified closed blocks of Fixed Indexed Annuities ("FIA") with guaranteed lifetime withdrawal benefit ("GLWB") policies in force on the Effective Date, issued between January 1, 2014 and December 31, 2023. The financial statement impact of this treaty resulted in a reduction of reserves of $348,730, offset by a surplus increase of $288,283 and Commission and Expense Allowances on Reinsurance Ceded of $60,447 and increased Income Taxes of $49,107. For 2023, $11,340 was released into income from surplus. In 2024 the related emergence of profits moved $47,469 of Surplus through Commissions and Expenses on Reinsurance Ceded. On September 30, 2024, the companies entered into an amendment to the agreement to add 2024 policies and set new quota shares and premium factors for those policies. On January 1, 2025 and September 1, 2025, the companies entered into two amendments to the agreement which added additional issue years through 2025, updated quota share percentages, a new product, additional rider versions, and updates to premium factors and calculations. The total reinsurance credit added under the amended agreement for 2024 was $598,425. In 2025 the related emergence of profits moved $42,311 of Surplus through Commissions and Expenses on Reinsurance Ceded.

Effective December 31, 2023, the Company entered a quota share reinsurance treaty with RGA Reinsurance Company, LTD. to transfer risks related to its FIA block. The block includes in force policies without GLWBs issued between 2014 and 2022. The financial statement impact of this treaty resulted in a reduction of reserves of $206,923, offset by a surplus increase of $206,923. In 2024 the related emergence of profits moved $25,682 of Surplus through Commissions and Expenses on Reinsurance Ceded. An October 1, 2024, agreement amendment resulted in a Surplus increase and a reduction of reserves of $145,395 for policy periods before 2024. On April 1, 2025 and August 6, 2025, the companies entered into two amendments to the agreement which provided recapture and duration updates, changes to quota share percentages on existing issue years, developed cohort splits and quota share percentages, updated endorsements and riders, updated premium schedules to reflect by cohort years, and updated attachment points and percentages. For policies in the agreement issued in 2024, a reserve decrease of $100,103 was offset by a decrease in change in reserve. In 2025 the related emergence of profits moved $44,243 of Surplus through Commissions and Expenses on Reinsurance Ceded.

**(10) Related Parties**

The Company had an investment of $25,800 with EquiTrust Principal Investment Company, LLC (EPIC), an affiliated entity. The underlying asset was transferred at carrying cost to the Company in Q3 of 2023.

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements<br> Years ended December 31, 2025 and 2024<br> (In thousands of dollars, except per share data)

Any associated losses incurred were reimbursed to EPIC at that time. The property is now reported as real estate at $25,800.

The Company entered into a reinsurance treaty with affiliate Atlanta Life Insurance Company (ALIC) that became effective at the end of the last business day of 2022. The treaty is structured on a coinsurance with funds withheld basis. Beginning in April of 2023, monthly net settlements were made based on the activity under this treaty. The treaty was amended effective January 1, 2024 to include policies issued in 2019 which increased the funds withheld liability by $150,075. The treaty was amended effective July 1, 2025 to include policies issued in 2020, 2021 and 2022 which increased the funds withheld liability by $405,138. At December 31, 2025 and December 31, 2024, the funds withheld liability held by the Company for the business ceded to ALIC under this treaty was $509,717 and $242,613, respectively.

The Company entered into an assumption reinsurance agreement for a block of business from NCM, a North Carolina domiciled life and annuity company in receivership under The National Organization of Life & Health Insurance Guaranty Association ("NOLHGA"). The Company entered into a reinsurance treaty with affiliate ALIC that became effective at the end of the last business day of 2024. The treaty is structured on a coinsurance with funds withheld basis. The Company has agreed to reinsure the prior NCM policyholder activity and business to ALIC on a monthly basis. In the third quarter of 2025, the Company and NCM revised the original purchase agreement and underlying policies to be assumed. The Company originally agreed to assume a block of approximately 112,000 policies, but revised the agreement to only assume approximately 16,000 policies. This reduced underlying reserves by approximately $86,000. At December 31, 2025, the Company ceded reserves of $36,699 and other net assets of $1,900 to ALIC, and established a funds withheld liability for the business ceded of $34,799.

The Company entered into a reinsurance treaty with the affiliate ALIC that became effective December 31, 2025. The treaty is structured as a quota share coinsurance arrangement where the Company assumes from ALIC 85% of the Minnesota Life and Securian Life group life business on a quarterly basis. At December 31, 2025, the Company assumed 85% of the IBNR reserves under this treaty for $2,136.

On September 6, 2024, a Form A Statement Regarding the Acquisition of Control of or Merger with a Domestic Insurer was filed with the Arizona Department. On June 10, 2025, the Arizona Department approved the Acquisition and it was consummated on November 14, 2025, thereby making the Registrant, Heritage Life Insurance Company, a member of Amistad Financial Group, LLC's holding company system. Prior to the merger, the Company had an existing reinsurance agreement effective December 31, 2012 with Heritage Life Insurance Company (HLIC). The Company reinsured to HLIC specific fixed and indexed annuity products and riders for policies issued in 2012 on a 100% quota share coinsurance funds withheld basis. At December 31, 2025 the reserves ceded under the agreement were $631,661.

**(11) Policy Liabilities**

The Company has $781,240 and $742,424 of life insurance reserves at December 31, 2025 and 2024, respectively. The amount of insurance in force for which gross premiums are less than the net premiums according to the valuation standard required by the Arizona Department of Insurance was $6,802 and $5,968 at December 31, 2025 and 2024, respectively.

The Company waives deduction of deferred fractional premiums upon death of the insured and returns any portion of the final premium beyond the date of death. Surrender values are not promised in excess of the legally computed reserves.

Several methods are employed in reserving for substandard lives, depending upon the plan and date of issue. In some cases,

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements<br> Years ended December 31, 2025 and 2024<br> (In thousands of dollars, except per share data)

extra premiums are charged for substandard lives in addition to the regular gross premium for the true age. Mean reserves are generally based on appropriate multiples of standard rates of mortality, but in some cases the extra reserve held is equal to one-half the gross annual premium. There is one plan where substandard cases are assigned an adjusted age and all reserves are calculated at standard mortality rates for the adjusted age.

Tabular interest, tabular cost and tabular less actual reserves release have been determined by formula for all insurance and annuities, respectively, except for universal life and variable universal life where tabular interest was determined from basic policy data. Tabular interest on funds not involving life contingencies has been determined by accounting data.

As of December 31, 2025, withdrawal characteristics of annuity actuarial reserves and deposit-type contract funds and other liabilities without life or disability contingencies were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  |<br>**General account** | **Separate**<br>**accounts**<br>**nonguaranteed** |<br>**Total** |<br>**Percent of total** |
| A. Individual annuities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;(1) Subject to discretionary withdrawal: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. With market value adjustment | $23267024 | $- | $23267024 | 83.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. At book value less current surrender charge of 5% or more | 1411320 |  | 1411320 | 5.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. At fair value |  |  |  | -% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Total with market value adjustment or at fair value (total of a-c) | 24678344 |  | 24678344 | 88.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. At book value without adjustments (minimal or no charge or adjustment) | 2073838 | 35261 | 2109099 | 7.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;(2) Not subject to discretionary withdrawal | 226571 | 841952 | 1068523 | 3.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;(3) Total (gross: direct + assumed) | 26978753 | 877213 | 27855966 | 100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;(4) Reinsurance ceded | 3897906 | 35261 | 3933167 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;(5) Total net (3) - (4) | $23080847 | $841952 | $23922799 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;(6) Amount included in A(1)b above that will move to A(1)e in the year after the statement date: | $93608 | $- | $93608 |  |

---

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements<br> Years ended December 31, 2025 and 2024<br> (In thousands of dollars, except per share data)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |<br>**General account** | **Separate**<br>**accounts**<br>**nonguaranteed** |<br>**Total** |<br>**Percent of total** |
| B. Group annuities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;(1) Subject to discretionary withdrawal: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. With market value adjustment | $1125331 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $1125331 | 84.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. At book value less current surrender charge of 5% or more |  |  |  | -% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. At fair value | - | - | - | -% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Total with market value adjustment or at fair value (total of a-c) | 1125331 |  | 1125331 | 84.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. At book value without adjustments (minimal or no charge or adjustment) | 191355 |  | 191355 | 14.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;(2) Not subject to discretionary withdrawal | 9618 | - | 9618 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;(3) Total (gross: direct + assumed) | 1326304 |  | 1326304 | 100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;(4) Reinsurance ceded | 337771 | - | 337771 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;(5) Total net (3) - (4) | $988533 | $- | $988533 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;(6) Amount included in B(1)b above that will move to B(1)e in the year after the statement date: | $- | $- | $- |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |<br>**General account** | **Separate**<br>**accounts**<br>**nonguaranteed** |<br>**Total** |<br>**Percent of total** |
| C. Deposit-type contracts (no life contingencies): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;(1) Subject to discretionary withdrawal: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. With market value adjustment | $488242 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $488242 | 7.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. At book value less current surrender charge of 5% or more |  |  |  | -% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. At fair value | - | - | - | -% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Total with market value adjustment or at fair value (total of a-c) | 488242 |  | 488242 | 7.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. At book value without adjustments (minimal or no charge or adjustment) | 323188 |  | 323188 | 5.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;(2) Not subject to discretionary withdrawal | 5402795 | - | 5402795 | 86.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;(3) Total (gross: direct + assumed) | 6214225 |  | 6214225 | 100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;(4) Reinsurance ceded | 323689 | - | 323689 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;(5) Total net (3) - (4) | $5890536 | $- | $5890536 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;(6) Amount included in C(1)b above that will move to C(1)e in the year after the statement date: | $- | $- | $- |  |

---

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

Below is a reconciliation, as of December 31, 2025, of annuity reserves, exhibit 5 and deposit fund liabilities, exhibit 7 and the Separate Accounts Statement as required by SSAP 51R:

---

| | |
|:---|:---|
|  | **December 31, 2025** |
| Life & Accident & Health Annual Statement |  |
| Exhibit 5, Annuity Reserves, Total (net) | $24047206 |
| Exhibit 5, Supplementary Contracts with Life Contingencies Section, Total (net) | 22174 |
| Exhibit 7, Deposit-Type Contracts | 5890536 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal General Account | 29959916 |
| Separate Account Annual Statement |  |
| Other contract deposit funds | 841952 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal Separate Account | 841952 |
| Combined Total | $30801868 |

---

As of December 31, 2024, withdrawal characteristics of annuity actuarial reserves and deposit-type contract funds and other liabilities without life or disability contingencies were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |<br>**General account** | **Separate**<br>**accounts**<br>**nonguaranteed** |<br>**Total** |<br>**Percent of total** |
| A. Individual annuities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Subject to discretionary withdrawal: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. With market value adjustment | $20231760 | $- | $20231760 | 83.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. At book value less current surrender charge of 5% or more | 1124182 |  | 1124182 | 4.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. At fair value | - | - | - | -% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Total with market value adjustment or at fair value (total of a-c) | 21355942 |  | 21355942 | 87.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. At book value without adjustments (minimal or no charge or adjustment) | 1962244 | 34272 | 1996516 | 8.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Not subject to discretionary withdrawal | 134270 | 828956 | 963226 | 4.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Total (gross: direct + assumed) | 23452456 | 863228 | 24315684 | 100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Reinsurance ceded | 3151703 | 34272 | 3185975 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Total net (3) - (4) | $20300753 | $828956 | $21129709 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Amount included in A(1)b above that will move to A(1)e in the year after the statement date: | $83941 | $- | $83941 |  |

---

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **General account** | **Separate <br> accounts <br> nonguaranteed** | **Total** | **Percent of total** |
| B. Group annuities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Subject to discretionary withdrawal: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. With market value adjustment | $1367064 | $- | $1367064 | 88.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. At book value less current surrender charge of 5% or more |  |  |  | -% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. At fair value | - | - | - | -% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Total with market value adjustment or at fair value (total of a-c) | 1367064 |  | 1367064 | 88.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. At book value without adjustments (minimal or no charge or adjustment) | 160300 |  | 160300 | 10.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Not subject to discretionary withdrawal | 10374 |  | 10374 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Total (gross: direct + assumed) | 1537738 |  | 1537738 | 100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Reinsurance ceded | 391095 |  | 391095 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Total net (3) - (4) | $1146643 | $- | $1146643 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Amount included in B(1)b above that will move to B(1)e in the year after the statement date: | $- | $- | $- |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **General account** | **Separate <br> accounts<br> nonguaranteed** | **Total** | **Percent of total** |
| C. Deposit-type contracts (no life contingencies): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Subject to discretionary withdrawal: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. With market value adjustment | $464353 | $- | $464353 | 9.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. At book value less current surrender charge of 5% or more |  |  |  | -% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. At fair value | - | - | - | -% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Total with market value adjustment or at fair value (total of a-c) | 464353 |  | 464353 | 9.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. At book value without adjustments (minimal or no charge or adjustment) | 322328 |  | 322328 | 6.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Not subject to discretionary withdrawal | 4363472 | - | 4363472 | 84.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Total (gross: direct + assumed) | 5150153 |  | 5150153 | 100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Reinsurance ceded | 323721 | - | 323721 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Total net (3) - (4) | $4826432 | $- | $4826432 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Amount included in C(1)b above that will move to C(1)e in the year after the statement date: | $- | $- | $- |  |

---

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

Below is a reconciliation, as of December 31, 2024, of annuity reserves, exhibit 5 and deposit fund liabilities, exhibit 7 and the Separate Accounts Statement as required by SSAP 51R:

---

| | |
|:---|:---|
|  | **December 31, 2024** |
| Life & Accident & Health Annual Statement |  |
| Exhibit 5, Annuity Reserves, Total (net) | $21426971 |
| Exhibit 5, Supplementary Contracts with Life Contingencies Section, Total (net) | 20425 |
| Exhibit 7, Deposit-Type Contracts | 4826432 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal General Account | 26273828 |
| Separate Account Annual Statement |  |
| Other contract deposit funds | 828956 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal Separate Account | 828956 |
| Combined Total | $27102784 |

---

As of December 31, 2025, withdrawal characteristics of life actuarial reserves were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **General account** | **General account** | **General account** | **Separate account - guaranteed and nonguaranteed** | **Separate account - guaranteed and nonguaranteed** | **Separate account - guaranteed and nonguaranteed** |
|  | **Account value** | **Cash value** | **Reserve** | **Account value** | **Cash value** | **Reserve** |
| A. Subject to discretionary withdrawal, surrender |  |  |  |  |  |  |
| values, or policy loans: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Term policies with cash value | $- | $2053 | $422 | $- | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Universal life | 71254 | 71871 | 75032 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Universal life with secondary guarantees | 9 | 2 | 309 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Indexed universal life | 715593 | 706536 | 720847 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Indexed universal life with secondary guarantees |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Indexed life |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Other permanent cash value life insurance |  | 35413 | 37845 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Variable life |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Variable universal life | 6498 | 6374 | 6560 | 38487 | 38487 | 38487 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) Miscellaneous reserves |  |  |  |  |  |  |
| B. Not subject to discretionary withdrawal or no cash values |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Term policies without cash value | XXX | XXX | 735 | XXX | XXX |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Accidental death benefits | XXX | XXX | 22 | XXX | XXX |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Disability - active lives | XXX | XXX | 2 | XXX | XXX |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Disability - disabled lives | XXX | XXX | 40 | XXX | XXX |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Miscellaneous reserves | XXX | XXX | 252 | XXX | XXX |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Indexed life | XXX | XXX | - | XXX | XXX | - |
| C. Total (gross: direct + assumed) | 793354 | 822249 | 842066 | 38487 | 38487 | 38487 |
| D. Reinsurance ceded | 18301 | 55637 | 60827 | 38487 | 38487 | 38487 |
| E. Total (net) (C) - (D) | $775053 | $766612 | $781239 | $- | $- | $- |

---

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

Below is a reconciliation, as of December 31, 2025, of life reserves, exhibit 5 and the Separate Accounts Statement as required by SSAP 51R:

---

| | |
|:---|:---|
|  | **December 31, 2025** |
| Life & Accident & Health Annual Statement |  |
| Exhibit 5, Life Reserves, Total (net) | $781240 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal General Account | 781240 |
| Separate Account Annual Statement |  |
| Other contract deposit funds | 38481 |
| Combined Total | $819721 |

---

As of December 31, 2024, withdrawal characteristics of life actuarial reserves were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **General account** | **General account** | **General account** | **Separate account - guaranteed and nonguaranteed** | **Separate account - guaranteed and nonguaranteed** | **Separate account - guaranteed and nonguaranteed** |
|  | **Account value** | **Cash value** | **Reserve** | **Account value** | **Cash value** | **Reserve** |
| A. Subject to discretionary withdrawal, surrender |  |  |  |  |  |  |
| values, or policy loans: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Term policies with cash value | $- | $6845 | $575 | $- | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Universal life | 80837 | 81182 | 84774 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Universal life with secondary guarantees | 18 | 10 | 289 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Indexed universal life | 661672 | 659710 | 676387 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Indexed universal life with secondary guarantees |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Indexed life |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Other permanent cash value life insurance |  | 113307 | 119649 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Variable life |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Variable universal life | 6323 | 6214 | 6371 | 37351 | 37351 | 37351 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) Miscellaneous reserves |  |  |  |  |  |  |
| B. Not subject to discretionary withdrawal or no cash values |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Term policies without cash value | XXX | XXX | 1961 | XXX | XXX |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Accidental death benefits | XXX | XXX | 74 | XXX | XXX |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Disability - active lives | XXX | XXX | 5 | XXX | XXX |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Disability - disabled lives | XXX | XXX | 68 | XXX | XXX |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Miscellaneous reserves | XXX | XXX | 463 | XXX | XXX |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Indexed life | XXX | XXX | - | XXX | XXX | - |
| C. Total (gross: direct + assumed) | 748850 | 867267 | 890616 | 37351 | 37351 | 37351 |
| D. Reinsurance ceded | 22169 | 142189 | 148191 | 37351 | 37351 | 37351 |
| E. Total (net) (C) - (D) | $726681 | $725078 | $742424 | $- | $- | $- |

---

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

Below is a reconciliation, as of December 31, 2024, of life reserves, exhibit 5 and the Separate Accounts Statement as required by SSAP 51R:

---

| | |
|:---|:---|
|  | **December 31, 2024** |
| Life & Accident & Health Annual Statement |  |
| Exhibit 5, Life Reserves, Total (net) | $742424 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal General Account | 742424 |
| Separate Account Annual Statement |  |
| Other contract deposit funds | 37336 |
| Combined Total | $779760 |

---

Reserves for life and annuity contracts increased from 2024 to 2025 as premium inflow from new sales outpaced benefit outflows. There are $22,174 and $20,424 of supplementary contracts with life contingencies included in the table above in 2025 and 2024, respectively.

Effective December 20, 2024, the Company issued a secured funding agreement in the amount of $500 million to VCAP 2024-A LLC. Effective June 24, 2025, the Company issued an additional secured funding agreement in the amount of $500 million to VCAP 2025-A LLC. Under the terms of these agreements, EquiTrust receives cash consideration and records a corresponding deposit obligation, with interest credited to the holders in accordance with the contractual interest rates and payment schedules.

Consistent with the nature of these arrangements and the Company's use of the proceeds in its investment spread strategy, the Company applies SSAP No. 52 – Deposit-Type Contracts to these obligations. The funding agreements are recorded as deposit liabilities and are not part of the Company's strategy to finance general operating activities. Should the Company obtain funds for general corporate operations in the future, such borrowings would be accounted for under SSAP No. 15 – Debt.

The Company is a member of the FHLB. Through its membership, the Company has conducted business activity with the FHLB. It is part of the Company's strategy to utilize these funds to achieve a spread over the attendant borrowing costs.

The table below indicates the carrying value of collateral pledged related to the membership agreement with the FHLB as of December 31, 2025 and 2024, respectively:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Collateral held in FHLB custody account | $6420526 | $5499132 |

---

The amount of collateral to admitted assets is 17.0% and 16.4%, in 2025 and 2024, respectively:

The fair value of maximum collateral pledged during 2025 and 2024 is $5,699,549 and $4,534,664, respectively.

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

Information regarding the liabilities related to the membership agreement with the FHLB as of December 31, 2025, and 2024 is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** |
|  | **General account** | **Separate account** | **Total** |
| Borrowing from FHLB: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funding Agreement | $4250000 | $- | $4250000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aggregate total | $4250000 | $- | $4250000 |
| Policyholder liabilities related to FHLB | $4081000 | $- | $4081000 |
| Maximum amount of borrowing reported: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funding Agreement | $4250000 | $- | $4250000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aggregate total | $4250000 | $- | $4250000 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** |
|  | **General account** | **Separate account** | **Total** |
| Borrowing from FHLB: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funding Agreement | $3700000 | $- | $3700000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aggregate total | 3700000 | - | 3700000 |
| Policyholder liabilities related to FHLB | $3530000 | $- | $3530000 |
| Maximum amount of borrowing reported: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funding Agreement | $3700000 | $- | $3700000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aggregate total | $3700000 | $- | $3700000 |

---

The Company does not have prepayment obligations under debt, funding agreements, or other borrowings.

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

**(12) Separate Accounts**

The Company's separate accounts relate to variable individual annuities (in run-off), supplemental contracts, individual private placement funding agreements, and private placement variable universal life insurance products. The Company has $915,699 and $900,578 of assets legally insulated from the general account as of December 31, 2025 and 2024, respectively. The Company has no non-insulated assets as of December 31, 2025 and 2024, respectively. Information regarding the separate accounts of the Company is as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Premiums, considerations or deposits | $1359 | $2058 |
| Reserves at December 31, for accounts with assets at |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value | 738599 | 708378 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract value | 177100 | 192200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total reserves | $915699 | $900578 |
| Reserves with withdrawal characteristics at fair value | $73747 | $71623 |
| Not subject to discretionary withdrawal | 841952 | 828955 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total reserves | $915699 | $900578 |

---

Fees paid by the separate accounts associated with investment management and administration of the separate accounts were $1,760 and $1,725 at December 31, 2025 and 2024, respectively. There were no amounts reported as transfers to and from separate accounts in the summary of operations of the Company's NAIC separate account annual statements or amounts reported as net transfers to separate accounts in the accompanying statements of operations for the years ended December 31, 2025 and 2024.

**(13) Capital and Surplus**

As of December 31, 2025 and 2024, the Company has 2,500 authorized shares of common stock, with a par value of $1,500 per share and 2,000 shares issued and outstanding.

The Company did not receive capital contributions from EquiTrust Holdings LLC during 2025 and 2024. There is no capital contribution accrued as of December 31, 2025 and 2024. The Company is subject to statutory and regulatory restrictions imposed by the Arizona Department of Insurance which limits the amount of cash dividends that may be paid to the stockholders. Under Arizona law, cash dividends may be paid only from unassigned surplus. Additionally, the maximum aggregate amount of ordinary dividends that the Company may declare or pay during any twelve month period is the greater of (1) 10% of its statutory surplus, or (2) net gain from operations provided that unassigned surplus is positive and sufficient to cover the payment, each as reported in the prior year's annual statement, unless written approval is obtained from the Arizona Department of Insurance granting a greater amount (extraordinary dividend). The Company may declare an ordinary dividend to shareholders without prior approval from the Arizona Department of Insurance in the amount of up to $404,344 in 2026.

The ability of the Company to pay future dividends is dependent on business conditions, income, cash requirements of the Company, and other relevant factors.

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

**(14) Commitments and Contingencies**

***a. Lease Commitments***

The Company leases office space in four locations. A ten-year lease extension for an office in West Des Moines was signed on August 29, 2016 and the new payment terms took effect on January 1, 2017. A ten year lease for an office in Chicago was signed on January 11, 2016. On July 23, 2020, a second amendment to the Chicago lease was signed to include additional office space, that is coterminous with the original space. A five year lease for an office in Scottsdale, AZ was signed on July 24, 2023. Rent expense under these leases totaled $1,043 and $931 in 2025 and 2024, respectively.

At December 31, 2025, the minimum aggregate future lease commitments of $7,997 are summarized as follows:

---

| | |
|:---|:---|
| **Year ended December 31** | **Operating leases** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2026 | $1422 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2027 | 1098 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2028 | 1056 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2029 | 1033 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2030 | 965 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2031 and thereafter | 2423 |
|  | $7997 |

---

***b. Capital Funding Commitments***

The Company has future outstanding commitments to fund or make certain additional investments to issuers of debt and equity investments. The table below provides additional information regarding the outstanding commitments:

---

| | |
|:---|:---|
|  | **2025 - Open Commitments** |
| PD BridgeCo Holdings | $250000 |
| USIT Investor LLC DDTL I | 225000 |
| PDIF Capital Funding | 205000 |
| USIT Investor LLC DDTL II | 200000 |
| Commercial mortgages | 176410 |
| All other | 171654 |
|  | $1228064 |

---

***c. Other Contingencies***

Under insurance guaranty fund laws, in most states insurance companies doing business therein can be assessed up to prescribed limits for policyholder losses incurred by insolvent companies. The Company does not believe such assessments will be materially different from amounts already provided for in the financial statements. Most of the laws do provide, however, that an assessment may be excused or deferred if it would threaten an insurer's own financial strength.

**EQUITRUST LIFE INSURANCE COMPANY**

Notes to Statutory Financial Statements

Years ended December 31, 2025 and 2024

(In thousands of dollars, except per share data)

***d. Litigation***

The Company is involved in various lawsuits in the normal course of business. The status of these legal actions is actively monitored by management. If management believed, based on available information, that an adverse outcome upon resolution of a given legal action was probable and the amount of that adverse outcome was reasonably estimable, a loss would be recognized and a related liability recorded. No such liabilities were recorded by the Company as of December 31, 2025 and 2024.

**(15) Reconciliation with Statutory Financial Statements Filed**

There were no adjustments subsequent to the filing of the 2025 annual statement.

Subsequent to the filing of the 2024 annual statement, management identified presentation differences in the statutory Cash Flow included in the accompanying statutory financial statements. Management has moved cash activity associated with Changes in Deposit-Type Funds from Net Cash from Operations to Cash from Financing and Miscellaneous Activities for 2024. Other Sources, Net, has been broken out to provide transparency to some of its larger components for 2024. A reconciliation of presentation as reported in the annual statement to the amounts included in the accompanying Statutory Financial Statements as of and for the year ended December 31, 2024 is provided below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Cash Flow (Use)/Source** |<br>**Change** |<br>**Note** | **2024 Annual**<br>**Statement** | **2024 Statutory**<br>**Audit Report** |<br>**Note** |
| Cash flow from operating activities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Benefits paid | $(463418) | # | $(1428700) | $(1892118) | # |
| Cash flow from financing and miscellaneous activities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other cash provided (used): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowed funds |  |  | 74935 | 74935 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in deposit-type funds | 464503 | # |  | 464503 | # |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds held under coinsurance | (21276) | \* |  | (21276) | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in receivable from subsidiary | (1145) | \* |  | (1145) | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in payable from subsidiary | 460 | \* |  | 460 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payable for Securities Lending |  | \* |  |  | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in derivative liability | 91316 | \* |  | 91316 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other sources, net | (70440) | \*# | 42514 | (27926) | \*# |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financial and miscellaneous | 463418 |  | 117449 | 580867 |  |

---

\* Breakout Item

# Reclassifications Subsequent

2024 Annual Statement

**(16) Subsequent Events**

Management has evaluated events subsequent to December 31, 2025 through April 17, 2026, the date these financial statements were available to be issued.

**SUPPLEMENTAL SCHEDULES**

**EQUITRUST LIFE INSURANCE COMPANY**

Supplemental Schedule of Assets and Liabilities

December 31, 2025

(In thousands of dollars)

The following is a summary of certain financial data included in other exhibits and schedules and utilized by actuaries in the determination of reserves.

---

| | |
|:---|:---|
| Investment Income Earned (excluding amortization of IMR): |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government bonds | $33613 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other bonds (unaffiliated) | 1435649 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds affiliates |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stocks (unaffiliated) | 13930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stocks of affiliates |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stocks (unaffiliated) | 25475 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stocks of affiliates |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans | 214027 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate | (970) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premium notes, policy loans, and liens | 495 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Collateral loans (not included in codification) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash on hand and on deposit | 39024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 206469 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other invested assets | 70125 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative instruments | 111336 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ceded investment income | (169854) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aggregate write-ins for investment income | 70876 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross investment income (excluding amortization of IMR) | $2050195 |
| Real estate owned (book value less encumbrances) |  |
| Mortgage loans (book value): |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Farm mortgages | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential mortgages | 670732 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgages | 3613698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total mortgage loans | $4284430 |
| Mortgage loans by standing (book value): |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Good standing |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Good standing with restructured terms | $4245845 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest overdue more than 90 days, not in foreclosure | 10742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreclosure in process | 27843 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total mortgage loans | $4284430 |
| Other long-term assets (statement value) | $410617 |
| Collateral loans | 763823 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(continued)

**EQUITRUST LIFE INSURANCE COMPANY**

Supplemental Schedule of Assets and Liabilities

December 31, 2025

(In thousands of dollars)

---

| | |
|:---|:---|
| Bonds and short-term investments by class and maturity |  |
| Bonds and short-term investments by maturity (statement value): |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Due within one year | $3486044 |
| &nbsp;&nbsp;&nbsp;&nbsp;Over 1 year through 5 years | 6430559 |
| &nbsp;&nbsp;&nbsp;&nbsp;Over 5 years through 10 years | 8196796 |
| &nbsp;&nbsp;&nbsp;&nbsp;Over 10 years through 20 years | 6481005 |
| &nbsp;&nbsp;&nbsp;&nbsp;Over 20 years | 4081423 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total by maturity | $28675827 |
| Bonds and short-term investments by class (statement value): |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Class 1 | $12719385 |
| &nbsp;&nbsp;&nbsp;&nbsp;Class 2 | 15303315 |
| &nbsp;&nbsp;&nbsp;&nbsp;Class 3 | 445357 |
| &nbsp;&nbsp;&nbsp;&nbsp;Class 4 | 117046 |
| &nbsp;&nbsp;&nbsp;&nbsp;Class 5 | 79434 |
| &nbsp;&nbsp;&nbsp;&nbsp;Class 6 | 11290 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total by class | $28675827 |
| Total bonds publicly traded | $10795797 |
| Total bonds privately placed | 17880031 |
| Preferred stocks (statement value) | 156264 |
| Common stocks (fair value) | 264718 |
| Cash, cash equivalents and short-term investments (book value) | 3376357 |
| Financial options owned (current value) | 171062 |
| Financial options written and in-force (current value) |  |
| Financial forwards/swaps contracts open (current value) | (5255) |
| Life insurance in-force: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ordinary | 1066 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit life |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Group life | 16590 |
| Amount of accidental death insurance in-force under ordinary policies |  |
| Life insurance policies with disability provision in-force: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ordinary | 40229 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit life |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Group life |  |
| Supplementary contracts in-force: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ordinary – not involving life contingencies: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount on deposit |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income payable | 25949 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ordinary – involving life contingencies: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income payable | 2021 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(continued)

**EQUITRUST LIFE INSURANCE COMPANY**

Supplemental Schedule of Assets and Liabilities

December 31, 2025

(In thousands of dollars)

---

| | |
|:---|:---|
| Group – not involving life contingencies: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount on deposit | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income payable | 1276 |
| Group – involving life contingencies: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income payable | $167 |
| Annuities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ordinary: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Immediate – amount of income payable | $79160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred – fully paid account balances | 14063716 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred – not fully paid account balances | 10253259 |
| Group: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount of income payable | $2302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred – fully paid account balances | 812552 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred – not fully paid account balances | 232163 |
| Accidental and health insurance – premiums in force: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ordinary | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Group |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit |  |
| Deposit-funds and dividends accumulations: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposit-funds – account balance |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend accumulations – account balance |  |
| Claim payments 2019: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Group accident health: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2019 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2018 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2017 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2016 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2015 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior |  |
| Other accident and health: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2019 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2018 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2017 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2016 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2015 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior |  |
| Other coverages that use developmental methods to calculate claim reserves: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2019 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2018 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2017 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2016 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2015 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior | $- |

---

See accompanying independent auditors' report

**EQUITRUST LIFE INSURANCE COMPANY**

Summary Investment Schedule

December 31, 2025

(In thousands of dollars)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | | **Admitted assets as reported in the annual** | **Admitted assets as reported in the annual** |
|  | **Gross investment holdings** | **Gross investment holdings** | **statement** | **statement** |
|  | **Amount** | **Percentage** | **Amount** | **Percentage** |
| Issuer credit obligations |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. governments | $858068 | 2.4% | $858068 | 2.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other U.S. government obligations |  | 0.0% |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-U.S. sovereign jurisdiction securities |  | 0.0% |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds - general obligations (direct & guaranteed) | 138607 | 0.4% | 138607 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds - special revenue | 1066718 | 3.0% | 1066718 | 3.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Project finance bonds issued by operating entities |  | 0.0% |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 15385541 | 42.8% | 15385541 | 42.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mandatory convertible bonds |  | 0.0% |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Single entity backed obligations |  | 0.0% |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SVO-identified bond exchange traded funds - fair value |  | 0.0% |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SVO-identified bond exchange traded funds - systematic value |  | 0.0% |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds issued by funds representing operating entities | 73209 | 0.2% | 73209 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank loans - issued |  | 0.0% |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank loans - acquired | 364625 | 1.0% | 364625 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans that qualify as SVO-identified credit tenant loans |  | 0.0% |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit |  | 0.0% |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other issuer credit obligations |  | 0.0% |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total issuer credit obligations | 17886768 | 49.7% | 17886768 | 49.7% |
| Asset-backed securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial asset-backed securities - self-liquidating | 8232597 | 22.9% | 8232597 | 22.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial asset-backed securities - not self-liquidating |  | 0.0% |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-financial asset-backed securities | 224886 | 0.6% | 224886 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total asset-backed securities | 8457483 | 23.5% | 8457483 | 23.5% |
| Preferred stocks: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Industrial and miscellaneous (unaffiliated) | 156264 | 0.4% | 156264 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parent, subsidiaries and affiliates |  | 0.0% |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total preferred stocks | 156264 | 0.4% | 156264 | 0.4% |
| Common stocks: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Industrial and miscellaneous - publicly traded (unaffiliated) | 216922 | 0.6% | 216922 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Industrial and miscellaneous - other | 47796 | 0.1% | 47796 | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parent, subsidiaries and affiliates - publicly traded |  | 0.0% |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parent, subsidiaries and affiliates - other |  | 0.0% |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mutual funds |  | 0.0% |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unit investment trusts |  | 0.0% |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Closed-end funds |  | 0.0% |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total common stocks | 264718 | 0.7% | 264718 | 0.7% |
| Mortgage loans: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Farm mortgages |  | 0.0% |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential mortgages | 677304 | 1.9% | 677304 | 1.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgages | 3527095 | 9.8% | 3527095 | 9.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mezzanine real estate loans | 86603 | 0.2% | 86603 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Valuation allowance | (6572) |  | (6572) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total mortgage loans | 4284430 | 11.9% | 4284430 | 11.9 |
| Real estate |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Properties occupied by company |  | 0.0% |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Properties held for production of income |  | 0.0% |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Properties held for sale | 46075 | 0.1% | 46075 | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total real estate | 46075 | 0.1% | 46075 | 0.1% |
| Cash, cash equivalents and short-term investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash | 8951 | 0.0% | 8951 | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash equivalents | 1102846 | 3.1% | 1102846 | 3.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 2264560 | 6.3% | 2264560 | 6.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cash, cash equivalents and short-term investments | 3376357 | 9.4% | 3376357 | 9.4% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(continued)

**EQUITRUST LIFE INSURANCE COMPANY**

Summary Investment Schedule

December 31, 2025

(In thousands of dollars)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | | **Admitted assets as reported in the** | **Admitted assets as reported in the** |
|  | **Gross investment holdings** | **Gross investment holdings** | **annual statement** | **annual statement** |
|  | **Amount** | **Percentage** | **Amount** | **Percentage** |
| Contract loans | $6735 | 0.0% | $6735 | 0.0% |
| Derivatives | 168578 | 0.5% | 168578 | 0.5% |
| Other invested assets | 1174440 | 3.3% | 1174440 | 3.3% |
| Receivables for securities | 148100 | 0.4% | 140382 | 0.4% |
| Securities lending | - | 0.0% | - | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total invested assets | $35969948 | 100.0% | $35962230 | 100.0% |

---

See accompanying independent auditors' report

**EQUITRUST LIFE INSURANCE COMPANY**

Supplemental Investment Risk Interrogatories

December 31, 2025

(In thousands of dollars)

The Company's total admitted assets excluding separate account assets was $36,866,815 as filed in the 2025 annual statement.

The Company's ten largest exposures to a single issuer/borrower/investment, excluding U.S. government, U.S. government agency securities and those U.S. government money market funds listed in the Appendix to the SVO Purposes and Procedures Manual as exempt, property occupied by the Company and policy loans at December 31, 2025 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| <br>&nbsp;&nbsp;**Issuer Type** | <br>**Type** | <br>**Amount** | **Percent of total**<br>**admitted assets** |
| &nbsp;&nbsp;American Media Productions, LLC | Bonds | $350000 | 0.9% |
| &nbsp;&nbsp;LCN, LLC | Bonds/Common Stock/Other Invested Assets | 286018 | 0.8% |
| &nbsp;&nbsp;Kosmos Management, LLC | Bonds | 210981 | 0.6% |
| &nbsp;&nbsp;Supreme Universal Holdings LTD | Bonds | 150000 | 0.4% |
| &nbsp;&nbsp;JLC Infrastructure Fund 1 & 2 LP | Other Invested Assets | 138095 | 0.4% |
| &nbsp;&nbsp;Plus Power Enterprises LC | Bonds | 100000 | 0.3% |
| &nbsp;&nbsp;Harbourview Strategic Core Partners | Bonds/Other Invested Assets | 98737 | 0.3% |
| &nbsp;&nbsp;Washburn Financial Trust A-1 | Bonds | 93550 | 0.3% |
| &nbsp;&nbsp;Virginia St Hsg Dev Auth | Bonds | 86056 | 0.2% |
| &nbsp;&nbsp;Secured Finance 2020-12 LLC | Bonds | 85000 | 0.2% |

---

The amounts and percentages of the Company's total admitted assets held in bonds and preferred stocks at December 31, 2025 by NAIC rating are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Bonds** | **Bonds** | **Bonds** | **Preferred Stocks** | **Preferred Stocks** | **Preferred Stocks** |
| <br>&nbsp;&nbsp;**NAIC Rating** | <br>**Amount** | **Percentage of total**<br>**Admitted** | <br>**NAIC Rating** | <br>**Amount** | **Percentage of total**<br>**Admitted** |
| &nbsp;&nbsp;NAIC-1 | $12712756 | 34.5% | P/RP-1 | $39738 | 0.1% |
| &nbsp;&nbsp;NAIC-2 | 15309945 | 41.5% | P/RP-2 | 90767 | 0.2% |
| &nbsp;&nbsp;NAIC-3 | 445357 | 1.2% | P/RP-3 | 25760 | 0.1% |
| &nbsp;&nbsp;NAIC-4 | 117046 | 0.3% | P/RP-4 |  | -% |
| &nbsp;&nbsp;NAIC-5 | 79434 | 0.2% | P/RP-5 |  | -% |
| &nbsp;&nbsp;NAIC-6 | 11290 | 0.0% | P/RP-6 |  | -% |

---

The Company holds admitted assets in foreign investments of approximately $3,101,124 or 8.4% of total admitted assets.

The amounts and percentages of the Company's total admitted assets held in foreign investments at December 31, 2025 by NAIC rating were as follows:

---

| | | |
|:---|:---|:---|
|  | <br>**Amount** | **Percentage of total**<br>**admitted assets** |
| &nbsp;&nbsp;Countries rated NAIC-1 | $3071810 | 8.3% |
| &nbsp;&nbsp;Countries rated NAIC-2 | 29314 | 0.1% |
| &nbsp;&nbsp;Countries rated NAIC-3 and below | - | -% |
|  | $3101124 | 8.4% |

---

(continued)

**EQUITRUST LIFE INSURANCE COMPANY**

Supplemental Investment Risk Interrogatories

December 31, 2025

(In thousands of dollars)

The largest foreign investment exposures in a single country categorized by NAIC sovereign rating:

---

| | | |
|:---|:---|:---|
|  | <br>**Amount** | **Percentage of total**<br>**admitted assets** |
| &nbsp;&nbsp;Countries rated NAIC-1 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Country: Cayman Islands | $1842505 | 5.0% |
| &nbsp;&nbsp;Country: United Kingdom | 357177 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Countries rated NAIC-2 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Country: Mexico | 29314 | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Country: None |  | 0.00% |
| &nbsp;&nbsp;Countries rated NAIC-3 and below |  |  |
|  |  | 0.00% |

---

The ten largest non-sovereign (i.e., nongovernmental) foreign issues:

---

| | | | |
|:---|:---|:---|:---|
| <br>&nbsp;&nbsp;**Issuer** | <br>**NAIC Rating** | <br>**Amount** | **Percentage of total**<br>**admitted assets** |
| &nbsp;&nbsp;LCN EUROPEAN LLC | 1 | $160710 | 0.4% |
| &nbsp;&nbsp;BRITISH TELECOM PLC | 2 | 65855 | 0.2% |
| &nbsp;&nbsp;HSBC HOLDINGS PLC | 2 | 50341 | 0.1% |
| &nbsp;&nbsp;1769 FUNDING INC | 2 | 44624 | 0.1% |
| &nbsp;&nbsp;VODAFONE GROUP PLC | 2 | 32177 | 0.1% |
| &nbsp;&nbsp;PFIZER IVNESTMENT ENTERPRISSES pte | 1 | 30977 | 0.1% |
| &nbsp;&nbsp;AERCAP IRELAND CAP GLOBA | 2 | 30450 | 0.1% |
| &nbsp;&nbsp;ESSAR OIL UK LIMITED | 1 | 30000 | 0.1% |
| &nbsp;&nbsp;TELEFONICA EMISIONES SAU | 2 | 29445 | 0.1% |
| &nbsp;&nbsp;TAKEDA PHARMACEUTICAL CO LTD | 2 | 27831 | 0.1% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(continued)

**EQUITRUST LIFE INSURANCE COMPANY**

Supplemental Investment Risk Interrogatories

December 31, 2025

(In thousands of dollars)

The Company holds admitted assets in Canadian investments of $101,420 or 0.3% for 2025.

The Company holds no assets with contractual sales restrictions; therefore, detail is not provided.

The ten largest equity interests:

---

| | | |
|:---|:---|:---|
| <br>&nbsp;&nbsp;**Issuer** | <br>**Amount** | **Percentage of total**<br>**admitted assets** |
| &nbsp;&nbsp;FEDERAL HOME LOAN BANK OF DES MOINES | $201250 | 0.5% |
| &nbsp;&nbsp;JLC INFRASTRUCTURE FUND I LP | 100545 | 0.3% |
| &nbsp;&nbsp;MC CREDIT FUND II LP | 81749 | 0.2% |
| &nbsp;&nbsp;ARBOR REALTY TRUST INC | 52399 | 0.1% |
| &nbsp;&nbsp;JLC INFRASTRUCTURE FUND II LP | 37550 | 0.1% |
| &nbsp;&nbsp;1543 CAPITAL MANAGEMENT | 30840 | 0.1% |
| &nbsp;&nbsp;HARBOURVIEW STRATEGIC CORE PARTNERS I LP | 28737 | 0.1% |
| &nbsp;&nbsp;VINEBROOK HOMES TRUST INC | 28128 | 0.1% |
| &nbsp;&nbsp;KKR REAL ESTATE FINANCE TRUST INC | 25760 | 0.1% |
| &nbsp;&nbsp;ANTARES PRIVATE CREDIT FUND | 24804 | 0.1% |

---

The Company holds no assets in general partnership interests; therefore, detail is not provided.

The Company holds mortgage loans of approximately $4,284,430 or 11.6% and $3,911,417 or 12.0% of total admitted assets for 2025 and 2024, respectively; Information regarding the Company's ten largest aggregate mortgage interests at December 31, 2025 and 2024 is as follows:

---

| | | | |
|:---|:---|:---|:---|
| <br>&nbsp;&nbsp;**Borrower** | <br>**Type** | <br>**Amount** | **Percentage of total**<br>**admitted assets** |
| &nbsp;&nbsp;GREENPOINT IOS PORTFOLIO | COMMERCIAL | $66825 | 0.2% |
| &nbsp;&nbsp;GENESIS SKYWAY | COMMERCIAL | 60000 | 0.2% |
| &nbsp;&nbsp;BBWI MIDWEST FULFILLMENT CENTE | COMMERCIAL | 53510 | 0.1% |
| &nbsp;&nbsp;HALLE INDUSTRIAL PORT (A&R) | COMMERCIAL | 52412 | 0.1% |
| &nbsp;&nbsp;FEDEX BOYLSTON | COMMERCIAL | 51429 | 0.1% |
| &nbsp;&nbsp;56 North Apartments | COMMERCIAL | 46082 | 0.1% |
| &nbsp;&nbsp;RESIDENCES AT ROCK RANCH | COMMERCIAL | 44621 | 0.1% |
| &nbsp;&nbsp;THE LINX CLUB | COMMERCIAL | 44000 | 0.1% |
| &nbsp;&nbsp;GRAND CENTRAL STUDENT APARTMEN | COMMERCIAL | 42801 | 0.1% |
| &nbsp;&nbsp;OAK FOREST APARTMENTS | COMMERCIAL | 41000 | 0.1% |

---

(continued)

**EQUITRUST LIFE INSURANCE COMPANY**

Supplemental Investment Risk Interrogatories

December 31, 2025

(In thousands of dollars)

Aggregate mortgage loans have the following loan-to-value ratios as determined from the most recent appraisal as of the audited statement date:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Loan-value** | **Residential** | **Residential** | **Commercial** | **Commercial** | **Agricultural** | **Agricultural** |
| &nbsp;&nbsp;Above 95% | $6020 | 0.0% | $- | 0.0% | $- | -% |
| &nbsp;&nbsp;91% to 95% |  | 0.0% | 196 | 0.0% |  | -% |
| &nbsp;&nbsp;81% to 90% | 34925 | 0.1% | 217 | 0.0% |  | -% |
| &nbsp;&nbsp;71% to 80% | 241921 | 0.7% | 108955 | 0.3% |  | -% |
| &nbsp;&nbsp;Below 70% | 394438 | 1.1% | 3504330 | 9.5% |  | -% |

---

The Company holds investments in real estate of $46,075 or 0% and $25,800 or 0% of total admitted assets for 2025 and 2024, respectively; therefore, detail is not provided.

The Company holds investments in mezzanine real estate loans of $86,603 or 0.2% and $96,557 or 0.3% of total admitted assets for 2025 and 2024, respectively; therefore, detail is not provided.

Amounts and percentage of the Company's total admitted assets subject to the following types of agreements:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | | | **At end of each quarter** | **At end of each quarter** |
|  | <br>**December 31, 2025**<br>**amount** | <br>**Percentage of total**<br>**admitted assets** | <br>**1st Qtr amount** | <br>**2nd Qtr amount** | <br>**3rd Qtr amount** |
| &nbsp;&nbsp;Repurchase agreements | $- | 0.0% | $202045 | $431358 | $146105 |
| &nbsp;&nbsp;Reverse repurchase agreements | 161000 | 0.4% | 172218 | 172211 | 161000 |

---

The amounts and percentages of potential exposure (defined as the amount determined in accordance with the NAIC Annual Statement Instructions) for swaps and forwards are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Owned** | **Owned** | **At end of each quarter** | **At end of each quarter** | **At end of each quarter** |
| <br>&nbsp;&nbsp;**Swaps and forwards** | **December 31, 2025**<br>**amount** | **Percentage of total**<br>**admitted assets** | <br>**1st Qtr amount** | <br>**2nd Qtr amount** | <br>**3rd Qtr amount** |
| &nbsp;&nbsp;Hedging | $8099 | -% | $2083 | $2063 | $8215 |
| &nbsp;&nbsp;Replications |  | -% |  |  |  |
| &nbsp;&nbsp;Other |  | -% |  |  |  |

---

The amounts and percentages of potential exposure (defined as the amount determined in accordance with the NAIC Annual Statement Instructions) for futures are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Owned** | **Owned** | **At end of each quarter** | **At end of each quarter** | **At end of each quarter** |
| <br>&nbsp;&nbsp;**Futures** | **December 31, 2025**<br>**amount** | **Percentage of total**<br>**admitted assets** | <br>**1st Qtr amount** | <br>**2nd Qtr amount** | <br>**3rd Qtr amount** |
| &nbsp;&nbsp;Other | $- | -% | $- | $- | $- |

---

See accompanying independent auditors' report

**EQUITRUST LIFE INSURANCE COMPANY**

Reinsurance Risk Interrogatories

December 31, 2025

(In thousands of dollars)

The following information regarding reinsurance contracts is presented to satisfy the disclosure requirements in SSAP No. 61R, Life, Deposit-Type and Accident and Health Reinsurance, which apply to reinsurance contracts entered into, renewed or amended on or after January 1, 1996.

&nbsp;&nbsp;&nbsp;&nbsp;1. Has the Company reinsured any risk with any other entity under a reinsurance contract
(or multiple contracts with the same reinsurer or its affiliates) that is subject to Appendix A-791, Life and Health Reinsurance Agreements,
and includes a provision that limits the reinsurer's assumption of significant risks identified in Appendix A-791?

Examples of risk-limiting features include provisions such as a deductible, a loss ratio corridor, a loss cap, an aggregate limit or other provisions that result in similar effects.

Yes ☐ No ☒

If yes, indicate the number of reinsurance contracts to which such provisions apply: N/A

If yes, indicate if deposit accounting was applied for all contracts subject to Appendix A-791 that limit significant risks.

Yes ☐ No ☐ N/A ☒

&nbsp;&nbsp;&nbsp;&nbsp;2. Has the Company reinsured any risk with any other entity under a reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) that is not subject to Appendix A-791, for which reinsurance accounting was applied and includes a provision that limits the reinsurer's assumption of risk?

Examples of risk-limiting features include provisions such as a deductible, a loss ratio corridor, a loss cap, an aggregate limit or other provisions that result in similar effects.

Yes ☐ No ☒

If yes, indicate the number of reinsurance contracts to which such provisions apply: N/A

If yes, indicate whether the reinsurance credit was reduced for the risk-limiting features.

Yes ☐ No ☐ N/A ☒

&nbsp;&nbsp;&nbsp;&nbsp;3. Does the Company have any reinsurance contracts (other than reinsurance contracts
with a federal or state facility) that contain one or more of the following features which may result in delays in payment in form or
in fact:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Provisions that permit the reporting of losses to be made less frequently than quarterly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Provisions that permit settlements to be made less frequently than quarterly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Provisions that permit payments due from the reinsurer to not be made in cash within
ninety (90) days of the settlement date (unless there is no activity during the period); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. The existence of payment schedules, accumulating retentions from multiple years, or
any features inherently designed to delay timing of the reimbursement to the ceding entity.

Yes ☐ No ☒

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(continued)

**EQUITRUST LIFE INSURANCE COMPANY**

Reinsurance Risk Interrogatories

December 31, 2025

(In thousands of dollars)

&nbsp;&nbsp;&nbsp;&nbsp;4. Has the Company reflected reinsurance accounting credit for any contracts that are
not subject to Appendix A-791 and not yearly renewable term reinsurance, which meet the risk transfer requirements of SSAP No. 61R?

---

| | | | |
|:---|:---|:---|:---|
| <br>**Type of Contract** | <br>&nbsp;&nbsp;&nbsp;**Response:** | **Identify reinsurance**<br>&nbsp;&nbsp;&nbsp;&nbsp;**contract(s):** | **Has the insured event(s) triggering**<br>&nbsp;&nbsp;&nbsp;&nbsp;**contract coverage been recognized?** |
| Assumption reinsurance – new for the reporting period | &nbsp;&nbsp;Yes ☐ No ☒ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A |
| Non-proportional reinsurance, which does not result in significant surplus relief | &nbsp;&nbsp;&nbsp;Yes ☐ No ☒ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes ☐ No ☐ N/A ☒ |

---

5. Has the Company ceded any risk, which is not subject to Appendix A-791 and not yearly renewable term reinsurance, under any reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) during the period covered by the financial statements, and either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Accounted for that contract as reinsurance under statutory accounting principles (SAP) and as a deposit under generally accepted accounting principles (GAAP); or

Yes ☐ No ☐ N/A ☒

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Accounted for that contract as reinsurance under GAAP and as a deposit under SAP?

Yes ☐ No ☐ N/A ☒

If the answer to item (a) or item (b) is yes, include relevant information regarding GAAP to SAP differences from the accounting policy footnote to the audited statutory-basis financial statements to explain why the contract(s) is treated differently for GAAP and SAP below:

See accompanying independent auditors' report