Document:

pri-ex102_318.htm

 

Exhibit 10.2

EXECUTION VERSION

AMENDED AND RESTATED

80% COINSURANCE AGREEMENT

by and between

PRIMERICA LIFE INSURANCE COMPANY

(the “Ceding Company”)

and

PECAN RE INC. 

(the “Reinsurer”)

Dated March 31, 2016

 

 

 

 

 

TABLE OF CONTENTS

 

	
Page

	
 

	
ARTICLE I

	
DEFINITIONS

	
 
	
 
	
 

	
Section 1.1
	
Definitions
	
1

	
 
	
 
	
 

	
ARTICLE II

	
REINSURANCE

	
 
	
 
	
 

	
Section 2.1
	
Reinsurance
	
7

	
Section 2.2
	
Exclusions
	
7

	
Section 2.3
	
Territory
	
8

	
 
	
 
	
 

	
ARTICLE III

	
COMMENCEMENT OF THE REINSURER’S LIABILITY

	
 
	
 
	
 

	
Section 3.1
	
Commencement of the Reinsurer's Liability
	
8

	
 
	
 
	
 

	
ARTICLE IV

	
REINSURANCE PREMIUMS, ALLOWANCES AND OTHER OBLIGATIONS

	
 
	
 
	
 

	
Section 4.1
	
Reinsurance Premiums
	
8

	
Section 4.2
	
Allowances
	
8

	
Section 4.3
	
Other Obligations
	
9

	
Section 4.4
	
Third Party Reinsurance
	
9

	
 
	
 
	
 

	
ARTICLE V

	
TAXES

	
 
	
 
	
 

	
Section 5.1
	
Guaranty Fund Assessments
	
9

	
Section 5.2
	
Premium Taxes
	
9

	
Section 5.3
	
DAC Tax Election
	
9

	
 
	
 
	
 

	
ARTICLE VI

	
CLAIMS

	
 
	
 
	
 

	
Section 6.1
	
Notice of Claims
	
10

	
Section 6.2
	
Settlement Authority
	
10

	
Section 6.3
	
Claim Payments
	
10

	
Section 6.4
	
Misstatement of Age or Sex
	
10

	
 
	
 
	
 

	
ARTICLE VII

	
REINSTATEMENTS

	
 
	
 
	
 

	
Section 7.1
	
Reinstatements
	
10

	
 
	
 
	
 

	
ARTICLE VIII

	
ACCOUNTING AND RESERVES

	
 
	
 
	
 

	
Section 8.1
	
Monthly Reports
	
10

	
Section 8.2
	
Monthly Account Balance Reports
	
10

	
Section 8.3
	
Settlements
	
10

	
Section 8.4
	
Offset and Recoupment
	
11

	
Section 8.5
	
Currency
	
11

	
 
	
 
	
 

	
ARTICLE IX

	
EXPENSES IN CONNECTION WITH THE REINSURED POLICIES

	
 
	
 
	
 

	
Section 9.1
	
Expenses in Connection with the Reinsured Policies
	
11

ii

 

	
 
	
 
	
 

	
ARTICLE X

	
ERRORS AND OMISSIONS

	
Section 10.1
	
Errors and Omissions
	
11

	
 
	
 
	
 

	
ARTICLE XI

	
RECAPTURE

	
 
	
 
	
 

	
Section 11.1
	
Recapture
	
12

	
Section 11.2
	
Notice of Recapture
	
12

	
Section 11.3
	
Recapture Fee
	
12

	
Section 11.4
	
Renewal Recapture
	
13

	
Section 11.5
	
Commutation Accounting and Settlement
	
13

	
Section 11.6
	
Limitation on Partial Recaptures
	
13

	
 
	
 
	
 

	
ARTICLE XII

	
ACCESS TO BOOKS AND RECORDS

	
 
	
 
	
 

	
Section 12.1
	
Access to Books and Records
	
13

	
 
	
 
	
 

	
ARTICLE XIII

	
INSOLVENCY

	
 
	
 
	
 

	
Section 13.1
	
Insolvency
	
14

	
 
	
 
	
 

	
ARTICLE XIV

	
DISPUTE RESOLUTION

	
 
	
 
	
 

	
Section 14.1
	
Consent to Jurisdiction
	
14

	
Section 14.2
	
Waiver of Jury Trial
	
14

	
Section 14.3
	
Specific Performance
	
14

	
 
	
 
	
 

	
ARTICLE XV

	
REINSURANCE TRUST ACCOUNT

	
 
	
 
	
 

	
Section 15.1
	
Reinsurance Trust Agreement
	
15

	
Section 15.2
	
Investment and Valuation of Trust Assets
	
15

	
Section 15.3
	
Adjustment of Trust Assets and Withdrawals
	
15

	
Section 15.4
	
Negotiability of Trust Assets
	
16

	
Section 15.5
	
Ceding Company's Withdrawals
	
16

	
Section 15.6
	
Return of Excess Withdrawals
	
16

	
Section 15.7
	
Costs of Trust
	
16

	
 
	
 
	
 

	
ARTICLE XVI

	
THIRD PARTY BENEFICIARY

	
 
	
 
	
 

	
Section 16.1
	
Third Party Beneficiary
	
17

	
 
	
 
	
 

	
ARTICLE XVII

	
REPRESENTATIONS, WARRANTIES AND COVENANTS

	
 
	
 
	
 

	
Section 17.1
	
Representations and Warranties of the Ceding Company
	
17

	
Section 17.2
	
Covenants of the Ceding Company
	
18

	
Section 17.3
	
Representations and Warranties of the Reinsurer
	
20

	
Section 17.4
	
Covenants of the Reinsurer
	
20

	
 
	
 
	
 

	
ARTICLE XVIII

	
INDEMNIFICATION

	
 
	
 
	
 

	
Section 18.1
	
Indemnification
	
21

	
 
	
 
	
 

iii

 

	
ARTICLE XIX

	
LICENSES; REGULATORY MATTERS

	
 
	
 
	
 

	
Section 19.1
	
Licenses
	
21

	
Section 19.2
	
Regulatory Matters
	
21

	
 
	
 
	
 

	
ARTICLE XX

	
DURATION OF AGREEMENT; TERMINATION

	
 
	
 
	
 

	
 
	
 
	
 

	
Section 20.1
	
Duration
	
22

	
Section 20.2
	
Termination
	
22

	
Section 20.3
	
Survival
	
22

	
 
	
 
	
 

	
ARTICLE XXI

	
MISCELLANEOUS

	
 
	
 
	
 

	
Section 21.1
	
Entire Agreement
	
22

	
Section 21.2
	
Amendments
	
22

	
Section 21.3
	
Severability
	
22

	
Section 21.4
	
Governing Law
	
22

	
Section 21.5
	
Notices
	
23

	
Section 21.6
	
Consent to Jurisdiction
	
23

	
Section 21.7
	
Service of Process
	
24

	
Section 21.8
	
Failure to Pay
	
24

	
Section 21.9
	
Assignment and Retrocession
	
24

	
Section 21.10
	
Captions
	
24

	
Section 21.11
	
Treatment of Confidential Information
	
24

	
Section 21.12
	
No Waiver; Preservation of Remedies
	
25

	
Section 21.13
	
Calendar Days
	
25

	
Section 21.14
	
Counterparts
	
25

	
Section 21.15
	
Incontestability
	
25

	
Section 21.16
	
Interpretation
	
25

	
Section 21.17
	
Reasonableness
	
25

SCHEDULES

Schedule AIdentification of Reserves

Schedule BNo Conflict or Violation Exceptions

Schedule CStop Loss Assets Amount

EXHIBITS

	
Exhibit I
	
Identification of Reinsured Policies

	
Exhibit II
	
Third Party Reinsurance

	
Exhibit III
	
Form of Monthly Report

	
Exhibit IV
	
Form of Monthly Account Balance Report

	
Exhibit V
	
Milliman Information

	
Exhibit VI
	
Milliman Report

 

 

 

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AMENDED AND RESTATED 80% COINSURANCE AGREEMENT

This AMENDED AND RESTATED 80% COINSURANCE AGREEMENT (together with the Exhibits hereto, this “Agreement”) is made on this March 31, 2016 (the “Restatement Date”) by and between PRIMERICA LIFE INSURANCE COMPANY, a stock life insurance company domiciled in the Commonwealth of Massachusetts (together with its successors and permitted assigns, the “Ceding Company”) and PECAN RE INC., a special purpose financial insurance company organized under Section 6048f of Title 8 of the Vermont Statutes Annotated (together with its successors and permitted assigns, the “Reinsurer”), and hereby amends and restates in its entirety that certain 80% Coinsurance Agreement, dated as of March 31, 2010, by and between the Ceding Company and Prime Re (as defined below) (the “Original Agreement”).

WHEREAS, the Ceding Company is engaged in the business of issuing certain life insurance policies and certain related riders;

WHEREAS, the Ceding Company and Prime Reinsurance Company, Inc., a special purpose financial insurance company organized under Section 6048f of Title 8 of the Vermont Statutes Annotated (“Prime Re”), have entered into the Original Agreement, pursuant to which the Ceding Company has ceded and Prime Re has reinsured, on an indemnity reinsurance basis certain liabilities with respect to the Reinsured Policies (as defined herein);

WHEREAS, the Ceding Company transferred certain assets to the Reinsurance Trust Accounts on behalf of Prime Re as initial consideration for the reinsurance provided hereunder;

WHEREAS, Prime Re has assigned and transferred, by novation, the Original Agreement to the Reinsurer with the effect that the Reinsurer has succeeded to all rights, obligations, duties and liabilities of Prime Re under the Original Agreement, whenever arising, and the Reinsurer has accepted such assignment, transfer and novation (the “Novation”) pursuant to a Novation Agreement between the Ceding Company, the Reinsurer and Prime Re (the “Novation Agreement”); and

WHEREAS, in connection with the Novation, the Ceding Company and the Reinsurer have agreed to amend and restate the Original Agreement in the form of this Agreement.

NOW THEREFORE, in consideration of the mutual and several promises and undertakings herein contained, and for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Ceding Company and the Reinsurer (individually, a “Party” and collectively, the “Parties”), hereby agree as follows:

ARTICLE I

DEFINITIONS

Section 1.1Definitions. The following terms, when used in this Agreement, shall have the meanings set forth in this Article I.

(a)“Administrative Practices” shall have the meaning specified in Section 17.2(a).

(b)“Affiliate” means, with respect to a Party, any entity that controls, is controlled by or is under common control with such Party.

(c)“Agreement” shall have the meaning specified in the Preamble.

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(d)“Applicable Law” means any domestic or foreign, federal, state or local statute, law, ordinance or code, or any written rules, regulations or administrative interpretations issued by any Governmental Authority pursuant to any of the foregoing, in each case applicable to any Party, and any order, writ, injunction, directive, judgment or decree of a court of competent jurisdiction applicable to the Parties.

(e)“Approval Period” means forty-five (45) calendar days, and any forty-five (45) day extension thereof as consented to by the Ceding Company, which consent shall not be unreasonably withheld, conditioned or delayed; provided, however, the Ceding Company shall not be required to consent to extend the Approval Period beyond an additional forty-five (45) days, for a total of ninety (90) days.

(f)“Business Day” means any day other than a day on which banks in Zurich, Switzerland, the State of Vermont, the State of Missouri or the Commonwealth of Massachusetts are permitted or required to be closed.

(g)“Capital Maintenance Agreement” means the Capital Maintenance Agreement, dated as of March 31, 2016, by and between Swiss Reinsurance Company Ltd and the Reinsurer.

(h)“Capital Maintenance Failure” shall have the meaning specified in Section 11.1(e).

(i)“Ceding Company” shall have the meaning specified in the Preamble.

(j)“Change of Control” shall have the meaning specified in Section 21.11.

(k)“Claims” means any and all claims, requests, demands or notices made under a Reinsured Policy for payment of benefits or other obligations, including death benefits, waived premiums, returned premium or any other payments alleged to be due in accordance with the terms and conditions of such Reinsured Policy.

(l)“Code” shall have the meaning specified in Section 5.3.

(m)“Collateralized Stop Loss Reinsurance Agreement” means the Collateralized Stop Loss Reinsurance Agreement, dated as of March 31, 2016, by and between Prime Re and the Reinsurer.

(n)“Commissioner” means the Commissioner of Insurance of the State of Vermont.

(o)“Commissions” means the contractual amounts earned by and the bonuses paid to the Ceding Company's sales representatives in connection with the Reinsured Policies on and after the Effective Date.

(p)“Commutation Payment” shall have the meaning specified in Section 11.5.

(q)“Confidential Information” shall have the meaning specified in Section 21.11.

(r)“Conversion” means the issuance by the Ceding Company of a new Coverage in replacement of a Coverage under a Reinsured Policy pursuant to an option granted under the terms of such Reinsured Policy; provided, however, in no event shall Conversions include any Renewal.

(s)“Coverage” means, with respect to any Policy, one or more life insurance coverages issued by the Ceding Company.  A single Policy may have multiple Coverages issued to multiple individuals and such multiple Coverages, in turn, may have different Original Initial Level Premium Periods, all within a single Policy.

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(t)“Covered Liabilities” means all liabilities incurred by the Ceding Company under the express terms of the Reinsured Policies (including End of Term Renewals) and all Reinsured ECOs; provided, however, in no event shall Covered Liabilities include any Excluded Liabilities.

(u)“DAC Tax Election” shall have the meaning specified in Section 5.3.

(v)“Direct Premiums” means all premiums actually received from the Policyholders attributable to the Reinsured Policies from and after the Effective Date and waived premiums on such Policies.

(w)“Effective Date” means January 1, 2010.

(x)“Eligible Assets” means cash in United States dollars, certificates of deposit issued by a United States bank and payable in United States dollars, and investments permitted by M.G.L. c. 175 or any combination of the above, provided investments in or issued by an entity controlling, controlled by or under common control with either the Ceding Company or the Reinsurer shall not exceed 5% of total investments.  Commercial paper and other obligations of institutions must be issued by a corporation (other than the Ceding Company, Prime Re or the Reinsurer, or any Affiliate of any of them) which is organized and existing under the laws of the United States of America, unless otherwise allowed by M.G.L. c. 175.  The Eligible Assets are further subject to and limited by, the investment guidelines set forth in the Reinsurance Trust Agreement.

(y)“End of Term Conversion” means, with respect to a Coverage under a Reinsured Policy, a Conversion that occurs (i) at any time during the two year period ending on the last day of the Original Initial Level Premium Period of a Coverage or (ii) after the last day of such period.

(z)“End of Term Renewal” means with respect to any Coverage, a Renewal thereof that occurs at the end of the Original Initial Level Premium Period in respect of such Coverage.

(aa)“Excess of Loss Reinsurance Agreement” means the Excess of Loss Reinsurance Agreement, dated as of March 31, 2016, by and between Prime Re and the Reinsurer.

(bb)“Excess Withdrawal Amount” shall have the meaning specified in Section 15.6.

(cc)“Excluded Liabilities” shall have the meaning specified in Section 2.2.

(dd)“Existing Practice” shall have the meaning specified in Section 17.2(a).

(ee)“Expense Allowance” means an annualized per base policy expense allowance equal to the Reinsurer's Quota Share multiplied by $42.50 for each Reinsured Policy payable on a monthly basis, which amount shall be increased (i) by 3% on the first anniversary date of the Effective Date and (ii) thereafter, by a compounded rate equal to the percentage increase, if any, in the employment cost index published by the United States Bureau of Labor Statistics at http://www.bls.gov on each subsequent anniversary date of the Effective Date.

(ff)“Extra-Contractual Obligations” means all liabilities, obligations and expenses not arising under the express terms and conditions of any Reinsured Policy, whether such liabilities, obligations or expenses are owing to an insured, a Governmental Authority or any other Person in connection with such Reinsured Policy, including (a) any liability for punitive, exemplary, consequential, special, treble, tort, bad faith or any other form of extra-contractual damages, (b) damages or claims in excess of the applicable policy limits of the Reinsured Policies, (c) statutory or regulatory damages, fines, penalties, forfeitures and similar charges of a penal or disciplinary nature, and (d) liabilities and obligations arising out of any act, error or omission, whether or not intentional, in bad faith or otherwise, including any act, error or omission relating to (i) the form, marketing, production, issuance, sale, cancellation or administration of Reinsured Policies or (ii) the failure to pay or the delay in payment of claims, benefits, disbursements or any other amounts due or alleged to be due under or in connection with Reinsured Policies (exclusive of interest on payments to Policyholders, as determined in accordance with the 

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laws of the jurisdiction applicable to such Reinsured Policy).  For avoidance of doubt, any liabilities, obligations and expenses relating to any change in the Reinsured Policies arising out of or resulting from litigation, arbitration or settlements will be deemed Extra-Contractual Obligations.

(gg)“Fair Value” shall have the meaning specified in the Reinsurance Trust Agreement.

(hh)“Governmental Authority” means any federal, state, county, local, foreign or other governmental or public agency, instrumentality, commission, authority or self-regulatory organization, board or body.

(ii)“Indemnification Claims” shall have the meaning specified in Section 18.1.

(jj)“Initial Ceding Commission” shall have the meaning specified in the Original Agreement.

(kk)“Insurance Division” means the Massachusetts Division of Insurance.

(ll)“Interest Maintenance Reserves” means the reserves required to be established under SAP as liabilities on a life insurer's statutory financial statements applicable to all types of fixed income investments.

(mm)“Massachusetts SAP” means the statutory accounting and actuarial principles and practices prescribed or permitted by the Insurance Division for Massachusetts domestic life insurance companies.

(nn)“Milliman” shall have the meaning specified in Section 17.1(e).

(oo)“Milliman Information” shall have the meaning specified in Section 17.1(e).

(pp)“Milliman Report” means the report attached hereto as Exhibit VI.

(qq)“Monthly Account Balance Report” shall have the meaning specified in Section 8.2.

(rr)“Monthly Report” shall have the meaning specified in Section 8.1.

(ss)“Net Premium” shall have the meaning specified in Section 4.1.

(tt)“Novation” shall have the meaning specified in the Recitals.

(uu)“Novation Agreement” shall have the meaning specified in the Recitals.

(vv)“Original Agreement” shall have the meaning specified in the Preamble.

(ww)“Original Initial Level Premium Period” means, with respect to each Reinsured Policy, the period beginning with the original issue date of a Coverage and ending with the first premium increase date identified within such Reinsured Policy on which premiums for such Coverage will increase without a corresponding increase in the terms or limits of such Coverage.

(xx)“Parties” shall have the meaning specified in the Recitals.

(yy)“Pecan-Funded Reserves Trust Account” shall have the meaning specified in Section 15.1.

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(zz)“Pecan-Funded Reserves Trust Account Required Balance” means, as of any date, the amount equal to the difference between (i) Reinsurer's Quota Share of the Statutory Reserves with respect to the Reinsured Policies and (ii) the Stop Loss Assets Amount.

(aaa)“Pecan-Funded Security Balance” means, as of the last day of each calendar quarter, the aggregate Fair Value as of such date of the Eligible Assets maintained in the Pecan-Funded Reserves Trust Account.

(bbb)“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

(ccc)“Policies” means term life insurance base policies and riders thereto issued by the Ceding Company.

(ddd)“Policyholders” means the owners or holders of one or more of the Reinsured Policies.

(eee)“Premium Taxes” means any taxes imposed on premiums relating to the Reinsured Policies.

(fff)“Prime-Funded Reserves Trust Account” shall have the meaning specified in Section 15.1.

(ggg)“Prime-Funded Reserves Trust Account Required Balance” means, as of any date, the amount equal to the Stop Loss Assets Amount.

(hhh)“Prime-Funded Security Balance” means, as of the last day of each calendar quarter, the aggregate Fair Value as of such date of the Eligible Assets maintained in the Prime-Funded Reserves Trust Account.

(iii)“Prime Rate” means, as of any day, a fluctuating interest rate per annum equal to the average (rounded upward to the nearest 1/16 of 1%) of the “prime” rate of interest announced publicly by Bank of America, N.T. & S.A., The Chase Manhattan Bank, N.A., Citibank N.A. and Morgan Guaranty Trust Company of New York.  If any of these banks does not publicly announce a prime rate, the Ceding Company and the Reinsurer (or its designee) shall jointly select another bank that publicly announces a prime rate and the prime rate publicly announced by that bank shall be used.

(jjj)“Prime Re” shall have the meaning specified in the Recitals.

(kkk)“Primerica” means Primerica, Inc., a Delaware corporation.

(lll)“Recapture Fee” shall have the meaning specified in Section 11.3.

(mmm)“Recapture Notice” shall have the meaning specified in Section 11.2.

(nnn)“Reinstatement” shall have the meaning specified in Section 7.1.

(ooo)“Reinsurance Credit Notice” shall have the meaning specified in Section 11.1(b).

(ppp)“Reinsurance Trust Accounts” shall have the meaning specified in Section 15.1.

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(qqq)“Reinsurance Trust Agreement” means the Amended and Restated 80% Coinsurance Trust Agreement, dated as of March 31, 2016, by and among the Ceding Company, the Reinsurer and The Bank of New York Mellon, as amended, supplemented, novated or otherwise modified from time to time, and at any time.

(rrr)“Reinsured ECOs” means (i) Extra-Contractual Obligations paid by the Ceding Company to a single (or joint) policyholder or beneficiary in the ordinary course of business, consistent with prudent business practices and (ii) Extra-Contractual Obligations arising in circumstances where the Reinsurer is an active party and directs or consents to the act, omission or course of conduct occurring after the date hereof that resulted in such Extra-Contractual Obligation; provided, however, that Reinsured ECOs shall not include any liabilities: (x) relating to class actions of any kind; (y) relating to sales, marketing or distribution practices of the Ceding Company or its sales representatives directed or applied to any specific class of policyholders as indicated on the underwriting records of the Ceding Company; or (z) relating to or based on violations of, or noncompliance with, Applicable Law by the Ceding Company.  Notwithstanding the foregoing, the term “Reinsured ECOs” shall not include any punitive, exemplary, consequential, special, treble, tort, bad faith or any other form of extra-contractual damages to the extent not permitted to be insured or reinsured under applicable law.

(sss)“Reinsured Policies” means Policies issued (i) on the policy forms identified in Exhibit I and riders thereto in force as of 11:59 p.m. (EST) on December 18, 2009 and (ii) as a result of any Conversions thereto, but not including any End of Term Conversions arising from Coverages with an Original Initial Level Premium Period ending on or after January 1, 2017.

(ttt)“Reinsurer” shall have the meaning specified in the Preamble.

(uuu)“Reinsurer's Quota Share” means eighty percent (80%) or such other percentage as modified to reflect a partial recapture of the Reinsurer's Quota Share of the Reinsured Policies pursuant to the terms and conditions specified in Section 2.1 and Article XI.

(vvv)“Renewal” means the continuation of Coverage under a Reinsured Policy after the end of the Original Initial Level Premium Period of such Coverage in accordance with the terms of such Reinsured Policy.

(www)“Renewal Recapture Right” shall have the meaning specified in Section 11.4.

(xxx)“Representatives” shall have the meaning specified in Section 12.1.

(yyy)“Required Balance” means, as of any date, the amount equal to the Reinsurer's Quota Share of the Statutory Reserves with respect to the Reinsured Policies.

(zzz)“Restatement Date” shall have the meaning specified in the Preamble.

(aaaa)“Retained Asset Account” means the Primerica Estate Account identified in the financial statements of the Ceding Company, reflecting death benefit proceeds retained by the Ceding Company on behalf of beneficiaries and available to such beneficiaries on demand.

(bbbb)“SAP” means statutory accounting principles.

(cccc)“Security Balance” means, as of the last day of each calendar quarter following the date hereof, the aggregate Fair Value as of such date of the Eligible Assets maintained in the Reinsurance Trust Accounts.

(dddd)“Statutory Financial Statement Credit” means credit for reinsurance permitted by the Massachusetts General Laws on the Ceding Company's statutory financial statements filed in the Commonwealth of Massachusetts with respect to the Reinsured Policies.

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(eeee)“Statutory Reserves” means, as of any date, all reserves set forth on Schedule A as of such date corresponding to liabilities of a type or kind identified as Covered Liabilities, related to the Reinsured Policies, such amount as determined by the Ceding Company in accordance with the methodologies used by the Ceding Company to calculate such amounts for purposes of its statutory financial statements prepared in accordance with Massachusetts SAP and generally consistent with past practices as of all dates without giving effect to this Agreement.

(ffff)“Stop Loss Assets Amount” means, in respect of any calendar quarter, the amount set forth in Schedule C.

(gggg)“Then Current Practice” shall have the meaning specified in Section 17.2(a).

(hhhh)“Third Party Accountant” means an independent accounting firm which is mutually acceptable to Ceding Company and Reinsurer, or, if Ceding Company and Reinsurer cannot agree on such an accounting firm, an independent accounting firm mutually acceptable to Ceding Company's and Reinsurer's respective independent accountants.

(iiii)“Third Party Reinsurance” means reinsurance of the Reinsured Policies placed with third party reinsurers as identified and summarized in Exhibit II (as such Exhibit II may be amended from time to time, and at any time).

(jjjj)“Third Party Reinsurance Premiums” means all premiums paid by the Ceding Company on or after the Effective Date for coverage under Third Party Reinsurance, net of refunds of unearned premiums on lapse (except that the refund of unearned premiums shall only apply for premiums payable under Third Party Reinsurance on or after the Effective Date).

(kkkk)“Top-Up Notice” shall have the meaning specified in Section 8.3(b).

(llll)“Trust Assets” shall have the meaning specified in Section 15.2.

(mmmm)“Trustee” means the trustee under the Reinsurance Trust Agreement.

ARTICLE II

REINSURANCE

Section 2.1Reinsurance.  Subject to the terms and conditions of this Agreement, the Ceding Company hereby cedes on an indemnity basis to the Reinsurer, and the Reinsurer hereby accepts and agrees to reinsure on an indemnity basis, the Reinsurer's Quota Share of the Covered Liabilities, provided, however, in the event of a recapture involving a pro rata portion of the Reinsurer's Quota Share of the Reinsured Policies pursuant to Article XI hereof, the Reinsurer's Quota Share of the Covered Liabilities will be proportionately reduced.  The Reinsurer's Quota Share of Covered Liabilities shall be reduced, but not below zero, by the Reinsurer's Quota Share of Third Party Reinsurance for Covered Liabilities in accordance with the respective terms thereof, to the extent such Third Party Reinsurance is actually collected.

Section 2.2Exclusions.  Notwithstanding any provision of this Agreement to the contrary, the Reinsurer shall not be liable for any liabilities or obligations of the Ceding Company that are:

(a)liabilities relating to benefits, including, but not limited to, terminal illness benefits, other than life insurance death benefits, any related waiver of premium coverages and write-offs of terminal illness policy loan balances;

(b)any liabilities resulting from any coverage added after the Effective Date to a Reinsured Policy that is not a Conversion or Renewal or otherwise required or permitted by the terms of such Reinsured Policy in effect on the Effective Date, unless such additional coverage is required by Applicable Law or has been approved in writing in advance by the Reinsurer;

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(c)any liabilities relating to deaths occurring prior to the Effective Date;

(d)Extra-Contractual Obligations, other than Reinsured ECOs;

(e)any loss or liabilities relating to or arising from the Ceding Company's Retained Asset Account for the Reinsured Policies;

(f)any losses or liabilities arising under any End of Term Conversion occurring on or after January 1, 2017;

(g)any loss or liabilities relating to or arising from actions taken by the Ceding Company without the consent of the Reinsurer as required by Section 17.2(b) hereof;

(h)any loss or liabilities relating to or arising from claims made, or lawsuits brought, by agents of the Ceding Company; and

(i)all liabilities or obligations of any kind or nature whatsoever that do not relate to the Reinsured Policies (collectively, (a)-(i) constitute the “Excluded Liabilities”).

Section 2.3Territory.  The reinsurance provided under this Agreement shall apply to the Covered Liabilities covering lives and risks wherever resident or situated.

ARTICLE III

COMMENCEMENT OF THE REINSURER'S LIABILITY

Section 3.1Commencement of the Reinsurer's Liability.  Except as otherwise set forth in this Agreement, the Reinsurer's liability under this Agreement shall attach simultaneously with that of the Ceding Company, and all reinsurance with respect to which the Reinsurer shall be liable by virtue of this Agreement shall be subject in all respects to the same risks, terms, rates, conditions, interpretations, and to the same modifications, alterations, cancellations and receivables under Third Party Reinsurance, as the respective Reinsured Policies to which liability under this Agreement attaches, the true intent of this Agreement being that the Reinsurer shall, in every case to which liability under this Agreement attaches and always subject to the Excluded Liabilities, follow the fortunes of the Ceding Company.

ARTICLE IV

REINSURANCE PREMIUMS, ALLOWANCES AND OTHER OBLIGATIONS

Section 4.1Reinsurance Premiums.  As consideration for the reinsurance provided herein, on a monthly basis during the term of this Agreement, the Ceding Company shall pay to the Reinsurer the Reinsurer's Quota Share of Direct Premiums net of the Reinsurer's Quota Share of Third Party Reinsurance Premiums (the “Net Premium”).  The Net Premium shall be paid in accordance with Article VIII.

Section 4.2Allowances.  At each month end following the date hereof, the Reinsurer shall pay the Ceding Company the Expense Allowance calculated on the basis of the number of Reinsured Policies in force on such date.  The number of Reinsured Policies in force for each calendar month shall be determined by adding the number of Reinsured Policies in force on the last day of the prior calendar month and the number of Reinsured Policies in force on the last day of the current calendar month and dividing that total by two (2); provided, however, if there are any End of Term Renewals, the Expense Allowance for the Reinsured Policies associated with such End of Term Renewals that start after December 31, 2016 will be zero.  The Expense Allowance shall be payable in accordance with Article VIII.

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Section 4.3Other Obligations.  On a monthly basis during the term of this Agreement, the Reinsurer shall pay the Ceding Company the Reinsurer's Quota Share of the following amounts:  (i) 2.3% of premiums collected for such month in connection with the Reinsured Policies as a provision for Premium Taxes incurred by the Ceding Company; (ii) $50 for each new Conversion which results in the issuance of a Reinsured Policy (including the issuance of one or more riders to a base Policy); (iii) Commissions for each Reinsured Policy; and (iv) any out-of-pocket underwriting fees associated with Reinstatements.

Section 4.4Third Party Reinsurance.  The Ceding Company shall pay to the Reinsurer the Reinsurer's Quota Share of all ceding commissions and any Premium Tax or other expense allowances collected by the Ceding Company from the reinsurers under Third Party Reinsurance.

ARTICLE V

TAXES

Section 5.1Guaranty Fund Assessments.  Except as provided in Section 4.2, the Reinsurer shall not reimburse the Ceding Company for any guaranty fund assessments arising on account of premiums on the Reinsured Policies.

Section 5.2Premium Taxes.  The Ceding Company shall be liable for all Premium Taxes.  The Reinsurer shall pay to the Ceding Company a provision for Premium Taxes incurred in connection with premiums received under the Reinsured Policies in accordance with Section 4.3.

Section 5.3DAC Tax Election.

(a)The Ceding Company and the Reinsurer agree to the election pursuant to Treasury Regulations section 1.848-2(g)(8) (such election being referred to as the “DAC Tax Election”), whereby:

(i)the party with the net positive consideration for this Agreement for each taxable year will capitalize specified policy acquisition expenses with respect to this Agreement without regard to the general deductions limitation of section 848(c)(1) of the Internal Revenue Code of 1986, as amended (the “Code”);

(ii)the parties agree to exchange information pertaining to the amount of net consideration under this Agreement each year to ensure consistency.  If requested, the Ceding Company will provide supporting information reasonably requested by the Reinsurer.  The parties also mutually agree to exchange information otherwise required by the U.S. Internal Revenue Service. (The term “net consideration” will refer to the net consideration as defined in Treasury Regulations section 1.848-2(f)); and

(iii)this DAC Tax Election will be effective for the first taxable year in which this Agreement is effective and for all years for which this Agreement remains in effect.

(b) The Ceding Company and the Reinsurer will each attach a schedule to their respective federal income tax returns filed for the first taxable year for which this DAC Tax Election is effective.  Such schedule shall identify the Agreement as a reinsurance agreement for which the DAC Tax Election under Treasury Regulations section 1.848-2(g)(8) has been made.

(c)Each of the Ceding Company and the Reinsurer represents and warrants that it is subject to U.S. taxation under the provisions of subchapter L of Chapter 1 of the Code.

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ARTICLE VI

CLAIMS

Section 6.1Notice of Claims.  Claim amounts less than or equal to $250,000 (net of amounts recoverable under Third Party Reinsurance) will be reported by the Ceding Company to the Reinsurer on a bordereau basis, and all other Claims shall be reported, with such information as may be reasonably requested by the Reinsurer, on an individual basis, in each case in accordance with Section 8.1.

Section 6.2Settlement Authority.  The Ceding Company shall have full authority to determine liability on any Claim reinsured hereunder and may settle losses as it deems appropriate, but in so doing it shall act with the skill and diligence commonly expected from qualified personnel performing such duties for U.S. life insurance companies and consistent with the Ceding Company's Then Current Practice.

Section 6.3Claim Payments.  Following receipt by the Reinsurer of the Monthly Report setting forth the Ceding Company's payment of any Covered Liabilities reinsured hereunder, the Reinsurer shall make payment of the Reinsurer's Quota Share of the Covered Liabilities in accordance with Article VIII.

Section 6.4Misstatement of Age or Sex.  In the event of an increase or reduction in the amount of the Ceding Company's insurance on any Reinsured Policy because of an overstatement or understatement of age or misstatement of sex, established during the life, or after the death, of the insured, the Reinsurer will share in such increase or reduction in proportion to the Reinsurer's Quota Share.

ARTICLE VII

REINSTATEMENTS

Section 7.1Reinstatements. If a Reinsured Policy is reinstated in accordance with its terms and the Ceding Company's reinstatement rules as in effect on the Effective Date (a “Reinstatement”), the reinsurance of such Reinsured Policy will be restored as if no change had occurred.  In such a case, the Ceding Company shall promptly pay the Reinsurer the Reinsurer's Quota Share of the Net Premiums attributable to such Reinstatement.

ARTICLE VIII

ACCOUNTING AND RESERVES

Section 8.1Monthly Reports.  Within twenty (20) Business Days after the end of each calendar month, the Ceding Company shall deliver to the Reinsurer the following monthly reports (each a “Monthly Report”) substantially in the form set forth in Exhibit III hereto:  (i) Monthly Settlement Report; (ii) Policy Exhibit; (iii) Reserve Report; (iv) Claim Reserve Report; (v) Bordereau Report; and (vi) Non-Bordereau Claims Report.

Section 8.2Monthly Account Balance Reports.  No later than ten (10) Business Days after the end of each calendar month, the Ceding Company shall prepare and deliver to the Reinsurer a report in the form and containing the information set forth in Exhibit IV (each a “Monthly Account Balance Report”).

Section 8.3Settlements.

(a)All monthly settlements shall be effected as follows:  (i) if the Monthly Report shows that the Ceding Company owes the Reinsurer a positive amount, the Ceding Company will pay the amount owed simultaneously with the delivery to the Reinsurer of the Monthly Report and (ii) if the Monthly Report shows that the Reinsurer owes the Ceding Company a positive amount, the Reinsurer shall pay the amount owed within twenty (20) Business Days after receiving the Monthly Report, it being understood that, for purposes of this Section 8.3(a), appropriate adjustments shall be made for withdrawals and reimbursements made during the month by the Ceding Company pursuant to Sections 15.5 and 15.6.

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(b)If the Reserve Report provided to the Reinsurer for the last month of a calendar quarter shows that (i) for so long as there is a separate Prime-Funded Reserves Trust Account and Pecan-Funded Reserves Trust Account contemplated by the Reinsurance Trust Agreement (A) the Pecan-Funded Security Balance is less than the Pecan-Funded Reserves Trust Account Required Balance as of the end of the immediately preceding calendar quarter or (B) the Prime-Funded Security Balance is less than the Prime-Funded Reserves Trust Account Required Balance as of the end of the immediately preceding calendar quarter or (ii) otherwise, the Security Balance is less than the Required Balance as of the end of the immediately preceding calendar quarter, in each case the Ceding Company shall notify the Reinsurer of the amount of the deficiency (the “Top-Up Notice”).  The Top-Up Notice shall be delivered to the Reinsurer at the same time as the copy of the Monthly Report for the same calendar quarter.

(c)All settlements of account between the Ceding Company and the Reinsurer shall be made in cash or its equivalent.

Section 8.4Offset and Recoupment.  Each Party, at its option, may offset or recoup any balance or balances, whether on account of premiums, Expense Allowances, claims and losses, Excess Withdrawal Amounts from the Pecan-Funded Reserves Trust Account and interest accrued thereon or amounts otherwise due from one Party to the other under this Agreement or other agreements between the Parties, or as a result of damages awarded to either Party pursuant to litigation or otherwise, which shall be deemed mutual debts or credits, as the case may be; provided, however, that the Party electing such right with respect to matters not reflected in the Monthly Reports shall notify the other Party in writing of its election to do so.

Section 8.5Currency.  All financial data required to be provided pursuant to the terms of this Agreement shall be expressed in United States dollars.  All payments and all settlements of account between the Parties shall be in United States currency unless otherwise agreed by the Parties.

ARTICLE IX

EXPENSES IN CONNECTION WITH THE REINSURED POLICIES

Section 9.1Expenses in Connection with the Reinsured Policies.  The Ceding Company shall pay for all expenses and charges incurred in connection with the Reinsured Policies including medical examinations, inspection fees, and other fees.  Except as provided in Section 4.2 and Section 4.3, such amounts shall not be reimbursed by the Reinsurer.

ARTICLE X

ERRORS AND OMISSIONS

Section 10.1Errors and Omissions.  Subject to the terms of this Agreement, neither Party hereto shall be prejudiced in any way by inadvertent errors or omissions made by such Party in connection with this Agreement provided such errors and omissions are corrected promptly following discovery thereof.  Upon the discovery of an inadvertent error or omission by either Party hereto, appropriate adjustments shall be made as soon as practicable to restore the Parties to the fullest extent possible to the position they would have been in had no such inadvertent error or omission occurred.

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ARTICLE XI

RECAPTURE

Section 11.1Recapture.  The Ceding Company may in accordance with the provisions of this Article XI recapture, in its sole discretion, all or a pro rata portion of all of the Reinsurer's Quota Share of the Reinsured Policies upon the occurrence of one of the following events:

(a)If the Reinsurer becomes insolvent or if the Commissioner has instituted a proceeding or entered a decree or order for the appointment of a rehabilitator or liquidator;

(b)If the Reinsurer fails to take steps reasonably satisfactory to the Ceding Company to assure the Ceding Company of full Statutory Financial Statement Credit for the Reinsured Policies within forty-five (45) calendar days of Reinsurer's receipt of written notice from the Ceding Company (a “Reinsurance Credit Notice”) that the Ceding Company has been advised by any Governmental Authority that the Governmental Authority will deny or has denied Statutory Financial Statement Credit on any financial statement filed by the Ceding Company with such Governmental Authority;

(c)If the Reinsurer is in material breach of any other representation, warranty or covenant under this Agreement and the Reinsurer fails to cure any such material breach of any representation, warranty or covenant hereunder within sixty (60) calendar days of receipt of written notice of such breach by the Reinsurer, unless such breach constitutes a Capital Maintenance Failure, in which case the provision in Section 11.1(e) shall apply and this provision shall not apply;

(d)If the Reinsurer fails in any material respects to fund, or cause to be funded, either of the Reinsurance Trust Accounts to the amount required after receipt of the Top-Up Notice under Section 15.3(d) within the time period specified therein, and the Reinsurer fails to cure any such funding deficiency within twenty (20) Business Days of receipt of written notice of such funding deficiency by the Reinsurer and the Security Balance is less than the Required Balance; or

(e)If there is a Capital Maintenance Failure under the Capital Maintenance Agreement.  For purposes of this Section 11.1(e), a “Capital Maintenance Failure” occurs at the end of any Approval Period when (i) the Reinsurer's Total Adjusted Capital is less than the Capital Threshold (as such terms are defined in the Capital Maintenance Agreement) and (ii) the Reinsurer fails to obtain a payment from the Obligor (as defined in the Capital Maintenance Agreement) in the amount of the deficiency within the Approval Period beginning on the date a demand is made by or on behalf of the Reinsurer for such payment in accordance with Section 2(a) of the Capital Maintenance Agreement.  The Reinsurer shall reimburse the Ceding Company for actual reasonable expenses incurred by the Ceding Company pursuant to this Section 11.1(e).

Section 11.2Notice of Recapture.  The Ceding Company shall notify the Reinsurer in writing of the reasons for, and the effective date of, the recapture ninety (90) calendar days prior to the effective date of recapture (the “Recapture Notice”); provided, however, that the recapture shall not be deemed to be consummated until the final accounting described in Section 11.4 of this Article XI has been completed and the Reinsurer has paid the Commutation Payment, if any.

Section 11.3Recapture Fee.  The Ceding Company shall pay a recapture fee (the “Recapture Fee”) to the Reinsurer upon the occurrence of any recapture of the Reinsured Policies pursuant to Section 11.1(b) if such recapture was triggered by the inability of the Ceding Company to obtain full Statutory Financial Statement Credit for the Reinsured Policies due to actions taken by the Ceding Company or its Affiliates; provided, however, that if the Reinsurer is in material breach of any representation, warranty or covenant under this Agreement at the time a recapture is triggered under Section 11.1(b), no Recapture Fee will be due and payable by the Ceding Company.  The Recapture Fee shall be equal to an amount to be determined by an actuarial appraisal prepared by a nationally recognized independent actuarial firm in accordance with methodologies agreed upon by the Ceding Company and Reinsurer to determine the value of the Reinsured Policies at such time in a manner consistent with the valuation of the Reinsured Policies as set forth in the Milliman Report and consistent with the determination of the Initial Ceding Commission based on such valuation.

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Section 11.4Renewal Recapture.  The Ceding Company shall also have the right, upon prior written notice to the Reinsurer, to recapture, in its sole discretion, all or a pro rata portion of End of Term Renewals arising from Policies with an Original Initial Level Premium Period ending on or after January 1, 2017 (the “Renewal Recapture Right”).  No Recapture Fee is payable in connection with the recapture of any End of Term Renewal.

Section 11.5Commutation Accounting and Settlement.  In the event of any recapture under this Article XI or termination under Section 21.8, the Reinsurer shall pay to the Ceding Company an amount equal to (i) the Reinsurer's Quota Share of the Statutory Reserves, Interest Maintenance Reserves (but only to the extent the Ceding Company's Interest Maintenance Reserves are increased) and advance premiums, if applicable, attributable to the Reinsured Policies being recaptured, in each case, calculated as of the effective date of the recapture set forth in the Recapture Notice; minus (ii) any amounts due to the Reinsurer but unpaid under this Agreement, including the Recapture Fee, if any, and net deferred premiums; plus (iii) any amounts due to the Ceding Company but unpaid under this Agreement (collectively, the “Commutation Payment”); provided, however, that, if the amount calculated pursuant to clause (ii) of this subsection exceeds the amounts calculated pursuant to clauses (i) and (iii) of this subsection, the Ceding Company shall pay to the Reinsurer the amount of such excess.  Following recapture and payment to the appropriate Party of the net Commutation Payment required hereunder, neither Party shall have further liability to the other Party hereunder with respect to the recaptured business.

Section 11.6Limitation on Partial Recaptures.  Notwithstanding the provisions of Section 11.1, the Ceding Company shall not be permitted to effect a partial recapture pursuant to Section 11.1 if, after giving effect to the recapture, the Statutory Reserves would be less than U.S. $100,000,000.

ARTICLE XII

ACCESS TO BOOKS AND RECORDS

Section 12.1Access to Books and Records.

(a)The Ceding Company shall, upon reasonable notice, provide to the Reinsurer, and the counsel, financial advisors, accountants, actuaries and other representatives of the Reinsurer (the “Representatives”) access, at the Reinsurer's sole cost and expense, to review, inspect, examine and reproduce the Ceding Company's books, records, accounts, policies, practices and procedures, including underwriting policy, claims administration guidelines and sales and Conversion practices, relating to the Reinsured Policies, including any audits and self assessments conducted by the Ceding Company as well as any unaudited information provided to Primerica in connection with Primerica's public company reporting requirements, at the place such records are located, and to discuss such matters with the employees, external auditors and external actuaries of the Ceding Company that are knowledgeable about such records, without undue disruption of the normal operations of the Ceding Company.

(b)The Reinsurer and its Representatives shall have the right, at its sole cost and expense, to conduct audits from time to time, upon reasonable notice to the Ceding Company, of the relevant books, records, accounts, policies, practices and procedures, including underwriting policy, claims administration guidelines and sales and Conversion practices of the Ceding Company relating to the Reinsured Policies.

(c)The Reinsurer shall reimburse the Ceding Company for any reasonable out-of-pocket costs that the Ceding Company incurs in providing assistance to the Reinsurer and its Representatives in connection with this Section 12.1.

(d)The Ceding Company shall use its reasonable best efforts to assist and cooperate with the Reinsurer, and its Representatives in providing access to the relevant in force files, experience data, books, records and accounts of the Ceding Company relating to the Reinsured Policies.

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ARTICLE XIII

INSOLVENCY

Section 13.1Insolvency.  In the event of the insolvency of the Ceding Company, payments due the Ceding Company on all reinsurance made, ceded, renewed or otherwise becoming effective under this Agreement shall be payable by the Reinsurer on the basis of claims filed and allowed in the liquidation proceeding under the Reinsured Policies without diminution because of the insolvency of the Ceding Company, either directly to the Ceding Company or to its domiciliary liquidator or receiver, except where the Reinsurer, with the consent of the Policyholder and in conformity with Applicable Law, has assumed the Ceding Company's obligations as direct obligations of the Reinsurer to the payees under the Reinsured Policies and in substitution for the obligations of the Ceding Company to the payees.  It is understood, however, that in the event of the insolvency of the Ceding Company, the liquidator or receiver or statutory successor of the Ceding Company shall give written notice to the Reinsurer of any impending Claim against the Ceding Company on a Reinsured Policy within a reasonable period of time after such Claim is filed in the insolvency proceedings and that during the pendency of such Claim the Reinsurer may, at its own expense, investigate such Claim and interpose, in the proceeding where such Claim is to be adjudicated any defense or defenses which it may deem available to the Ceding Company or its liquidator or receiver or statutory successor.  It is further understood that the expense thus incurred by the Reinsurer shall be chargeable, subject to court approval, against the Ceding Company as part of the expense of liquidation to the extent of a proportionate share of the benefit which may accrue to the Ceding Company solely as a result of the defense undertaken by the Reinsurer.

ARTICLE XIV

DISPUTE RESOLUTION

Section 14.1Consent to Jurisdiction.  Each of the parties hereto irrevocably and unconditionally submits to the exclusive jurisdiction of the United States District Court for the District of Massachusetts or, if such court does not have jurisdiction, the appropriate district court of the Commonwealth of Massachusetts, for the purposes of enforcing this Agreement.  The parties shall take such actions as are within their control to cause any disputes as described in the preceding sentence to be assigned to the complex litigation docket of the applicable court.  In any action, suit or other proceeding, each of the parties hereto irrevocably and unconditionally waives and agrees not to assert by way of motion, as a defense or otherwise any claims that it is not subject to the jurisdiction of the above courts, that such action or suit is brought in an inconvenient forum or that the venue of such action, suit or other proceeding is improper.  Each of the parties hereto also agrees that any final and unappealable judgment against a party hereto in connection with any action, suit or other proceeding as contemplated in this Article XIV shall be conclusive and binding on such party and that such award or judgment may be enforced in any court of competent jurisdiction, either within or outside of the United States.  A certified or exemplified copy of such award or judgment shall be conclusive evidence of the fact and amount of such award or judgment.

Section 14.2Waiver of Jury Trial.  Each of the parties hereto irrevocably waives any and all right to trial by jury in any legal proceeding arising out of or related to this Agreement or the transactions contemplated hereby.

Section 14.3Specific Performance.  The parties recognize and agree that if for any reason any of the provisions of this Agreement are not performed in accordance with their specific terms or are otherwise breached, immediate and irreparable harm or injury would be caused for which money damages would not be an adequate remedy.  Accordingly, each party agrees that, in addition to any other available remedies each other party shall be entitled to an injunction restraining any violation or threatened violation of any of the provisions of this Agreement without the necessity of posting a bond or other form of security.  In the event that any action should be brought in equity to enforce any of the provisions of this Agreement, no party will allege, and each party hereby waives the defense, that there is an adequate remedy at law.

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ARTICLE XV

REINSURANCE TRUST ACCOUNT

Section 15.1Reinsurance Trust Agreement.  Prior to the Restatement Date, Prime Re, as grantor, created (i) a trust account to support the Pecan-Funded Reserves (the “Pecan-Funded Reserves Trust Account”) and (ii) a trust account to support the Prime-Funded Reserves (the “Prime-Funded Reserves Trust Account,” and together with the Pecan-Funded Reserves Trust Account, the “Reinsurance Trust Accounts”) and has named the Ceding Company as sole beneficiary of each Reinsurance Trust Account.  On the Restatement Date, the Reinsurer assumed through novation Prime Re's position, as grantor, under the Pecan-Funded Reserves Trust Account and the Prime-Funded Reserves Trust Account.

Section 15.2Investment and Valuation of Trust Assets.  The assets held in the Reinsurance Trust Accounts (the “Trust Assets”) shall consist of Eligible Assets.

Section 15.3Adjustment of Trust Assets and Withdrawals.

(a)The amount of assets to be maintained in each of the Reinsurance Trust Accounts shall be adjusted following the end of each calendar quarter in accordance with the Reserve Report for the last calendar month of each calendar quarter provided to the Reinsurer pursuant to the terms of Section 8.1.  Such report shall set forth (i) the amount by which the Pecan-Funded Security Balance equals or exceeds the Pecan-Funded Reserves Trust Account Required Balance, (ii) the amount by which the Prime-Funded Security Balance equals or exceeds the Prime-Funded Reserves Trust Account Required Balance and (iii) the amount by which the Security Balance equals or exceeds the Required Balance, in each case as of the end of the immediately preceding calendar quarter.

(b)If the Pecan-Funded Security Balance exceeds 102% of the Pecan-Funded Reserves Trust Account Required Balance, in each case as of the end of the immediately preceding calendar quarter, then the Reinsurer shall have the right to seek approval (which shall not be unreasonably or arbitrarily withheld, conditioned or delayed) from the Ceding Company to withdraw the excess from the Pecan-Funded Reserves Trust Account; provided, however, that the Reinsurer may not withdraw any amounts from the Pecan-Funded Reserves Trust Account unless the Prime-Funded Reserves Trust Account contains at least 102% of the Prime-Funded Reserves Trust Required Balance.

(c)If the Prime-Funded Security Balance exceeds 102% of the Prime-Funded Reserves Trust Account Required Balance, in each case as of the end of the immediately preceding calendar quarter, then the Reinsurer shall have the right to seek approval (which shall not be unreasonably or arbitrarily withheld, conditioned or delayed) from the Ceding Company to withdraw the excess from the Prime-Funded Reserves Trust Account; provided, however, that the Reinsurer may not withdraw any amounts from the Prime-Funded Reserves Trust Account unless the Pecan-Funded Reserves Trust Account contains at least 102% of the Pecan-Funded Reserves Trust Required Balance.

(d)For so long as there is a separate Prime-Funded Reserves Trust Account and Pecan-Funded Reserves Trust Account, the Reinsurer shall, no later than twenty (20) Business Days following receipt of a Top-Up Notice delivered in accordance with Section 8.3(b) (i) regarding the Pecan-Funded Security Balance, deposit, or cause to be deposited, additional Trust Assets into the Pecan-Funded Reserves Trust Account so that the Pecan-Funded Security Balance, as of the date such additional Trust Assets are so deposited, is no less than the Pecan-Funded Reserves Trust Account Required Balance as of the end of the immediately preceding calendar quarter and (ii) regarding the Prime-Funded Security Balance, deposit, or cause to be deposited, additional Trust Assets into the Prime-Funded Reserves Trust Account so that the Prime-Funded Security Balance, as of the date such additional Trust Assets are so deposited, is no less than the Prime-Funded Reserves Trust Account Required Balance as of the end of the immediately preceding calendar quarter.  Without limiting or duplicating the Reinsurer's obligations pursuant to the immediately preceding sentence, irrespective of whether there is a separate Prime-Funded Reserves Trust Account and Pecan-Funded Reserves Trust Account, the Reinsurer shall, no later than twenty (20) Business Days following receipt of a Top-Up Notice delivered in accordance with Section 8.3(b) regarding the Security Balance, deposit, or cause to be deposited, additional Trust Assets into the Reinsurance Trust 

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Accounts or, as applicable, any successor reinsurance trust account created pursuant and subject to the Reinsurance Trust Agreement, so that the Security Balance, as of the date such additional Trust Assets are so deposited, is no less than the Required Balance as of the end of the immediately preceding calendar quarter.

Section 15.4Negotiability of Trust Assets.  Prior to depositing Trust Assets with the Trustee, the Reinsurer or such other Person depositing Trust Assets shall execute all assignments or endorsements in blank, or transfer legal title to the Trustee of all shares, obligations or any other assets requiring assignments, in order that the Ceding Company, or the Trustee upon direction of the Ceding Company, may whenever necessary negotiate any such assets without consent or signature from the Reinsurer or any other entity.

Section 15.5Ceding Company's Withdrawals.  The Ceding Company (or any successor by operation of law of the Ceding Company, including, but not limited to, any liquidator, rehabilitator, receiver or conservator of the Ceding Company) may only withdraw Trust Assets for one or more of the following purposes, without diminution because of insolvency on the part of the Ceding Company or the Reinsurer:

(a)to pay, or reimburse the Ceding Company for payment of, the Reinsurer's Quota Share of premiums to be returned, but not yet recovered from the Reinsurer, to Policyholders because of cancellations of Reinsured Policies;

(b)to pay, or reimburse the Ceding Company for payment of, the Reinsurer's Quota Share of Covered Liabilities payable pursuant to the provisions of the Reinsured Policies, but not yet recovered from the Reinsurer;

(c)to pay to the Ceding Company any Commutation Payment due the Ceding Company but not yet paid by the Reinsurer;

(d)in the event that the Ceding Company has received notification from the Reinsurer or Trustee of termination of the Reinsurance Trust Accounts and where the Reinsurer's Quota Share of obligations under this Agreement remain unliquidated and undischarged ten (10) days prior to the scheduled termination date, the Ceding Company may withdraw all the assets in the Reinsurance Trust Accounts and deposit such amounts, in the name of the Ceding Company, in any United States bank or trust account, apart from its general assets, in trust for such uses and purposes specified in (a) and (b) above as may remain executory after such withdrawal and for any period after such termination date; or

(e)to pay to the Reinsurer or its designated payee amounts held in the Reinsurance Trust Accounts in excess of the amount necessary to secure the credit or reduction from liability for reinsurance taken by the  Ceding Company.

Any assets deposited into an account of the Ceding Company pursuant to clause (d) of this Section 15.5 or withdrawn by the Ceding Company pursuant to clause (e) of this Section 15.5 and any interest or other earnings thereon shall be held by the Ceding Company in trust and separate and apart from any assets of the Ceding Company, for the sole purpose of funding the payments and reimbursements described in clauses (a) through (e), inclusive, of this Section 15.5.

Section 15.6Return of Excess Withdrawals.  The Ceding Company shall return to the Reinsurer, within five (5) Business Days, assets withdrawn in excess of all amounts due under Sections 15.5(a), (b) and (e), or, in the case of Section 15.5(d) above, assets that are subsequently determined not to be due (the Fair Value of any such withdrawn assets at the time of withdrawal, the “Excess Withdrawal Amount”).  Any assets subsequently returned in the case of Section 15.5(d) shall include interest at the Prime Rate applied on a daily basis for the amounts returned.  Any such Excess Withdrawal Amount from a Reinsurance Trust Account and any interest accrued thereon in accordance with the preceding sentence shall be deemed to be an amount due to the Reinsurer and subject to Section 8.4.

Section 15.7Costs of Trust.  The cost of maintaining the Reinsurance Trust Accounts shall be borne by the Reinsurer.

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ARTICLE XVI

THIRD PARTY BENEFICIARY

Section 16.1Third Party Beneficiary.  Nothing in this Agreement or the Reinsurance Trust Agreement is intended to give any person, other than the parties to such agreements, their successors and permitted assigns, any legal or equitable right remedy or claim under or in respect of this Agreement or the Reinsurance Trust Agreement or any provision contained therein.

ARTICLE XVII

REPRESENTATIONS, WARRANTIES AND COVENANTS

Section 17.1Representations and Warranties of the Ceding Company.

(a)Organization, Standing and Authority of the Ceding Company.  The Ceding Company is a life insurance company duly organized, validly existing and in good standing under the laws of the Commonwealth of Massachusetts, and has all requisite corporate power and authority to carry on the operations of its business as they are now being conducted.  The Ceding Company has obtained all authorizations and approvals required under Applicable Law to enter into and perform the obligations contemplated of the Ceding Company under this Agreement.

(b)Authorization.  The Ceding Company has all requisite corporate power and authority to enter into this Agreement and to perform its obligations hereunder.  The execution and delivery by the Ceding Company of this Agreement, and the performance by the Ceding Company of its obligations under this Agreement, have been duly authorized by all necessary corporate action and do not require any further authorization, action or consent of the Ceding Company.  This Agreement, when duly executed and delivered by the Ceding Company, subject to the due execution and delivery by the Reinsurer, will be a valid and binding obligation of the Ceding Company, enforceable against the Ceding Company in accordance with its terms, in each case subject to bankruptcy, insolvency, reorganization, moratorium and similar laws of general application relating to or affecting enforcement of creditors' rights and to general equity principles.

(c)No Conflict or Violation.  Except as set forth in Schedule B, the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby in accordance with the respective terms and conditions hereof will not (a) violate any provision of the Articles of Incorporation or Bylaws of the Ceding Company, (b) violate, conflict with or result in the breach of any of the terms of, result in any modification of, give any counterparty the right to terminate, or constitute a default under, any contract or other agreement to which the Ceding Company is a party, or (c) violate any order, judgment, injunction, award or decree of any court, arbitrator or Governmental Authority against, or binding upon, or any agreement with, or condition imposed by, any Governmental Authority, foreign or domestic, binding upon the Ceding Company.

(d)Absence of Litigation.  There is no action, suit, proceeding or investigation pending or threatened that questions the legality of the transactions contemplated by this Agreement or that would prevent consummation of the transactions contemplated by this Agreement or the performance by the Ceding Company of its obligations hereunder.

(e)Milliman Information True and Complete.

(i)To the best of the Ceding Company's knowledge, all information and data supplied to Milliman Inc. (“Milliman”) identified on Exhibit V-A hereto (the “Milliman Information”) was true, accurate and complete in all material respects as of the date the document containing such Milliman Information was provided to Milliman by the Ceding Company; provided, however, the Parties acknowledge that no representation or warranty has been made to the Reinsurer or any of its Affiliates or Representatives with respect to the truth, accuracy and completeness of any assumptions, projections, or estimates either provided by the Ceding Company or underlying any of the studies prepared 

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by the Ceding Company in connection with the Milliman Information except that the Ceding Company represents and warrants that such assumptions, projections or estimates were the ones actually utilized by the Ceding Company for the purposes stated in Exhibit V.  The Milliman Information was complied in a commercially reasonable manner given the intended purpose.

(ii)The financial data supplied to Milliman identified on Exhibit V-B hereto presents fairly, in all material respects, the financial condition and results of operations of the Ceding Company as of and for the periods specified therein in accordance with Massachusetts SAP, consistently applied.

(f)Coverage Information.  The Reinsured Policies information identified in Exhibit I is true, accurate and complete in all material respects.

(g)Regulatory Filings.  The Ceding Company has filed the appropriate regulatory filings to increase guaranteed premium provisions in Policies or coverages that may be issued upon the occurrence of a Conversion with each applicable state insurance regulator prior to the Effective Date and has received all required approvals or non-disapprovals from each such insurance regulator.

Section 17.2Covenants of the Ceding Company.

(a)Administration and Claims Practices.

(i)In the administration and claims practices relating to the Reinsured Policies (the “Administrative Practices”), the Ceding Company shall (A) use the skill and diligence commonly expected from qualified personnel performing such duties for U.S. life insurance companies; (B) act in accordance with the Ceding Company's internal company guidelines as in effect on January 1, 2016; (C) be in conformance with Applicable Law in all material respects; and (D) act in a manner consistent with its existing administrative and claims practices in effect on January 1, 2016 and in any case with no less skill, diligence and expertise as the Ceding Company applies to servicing its other business, including those claims practices in existence for Third Party Reinsurance (each, an “Existing Practice”); notwithstanding the foregoing, the Ceding Company shall not be in breach of this Section 17.2(a)(i) unless either (Y) the Reinsurer shall have notified the Ceding Company in writing of the Ceding Company's failure to perform its obligations under this Section 17.2(a)(i) (which written notice shall describe such failure with reasonable particularity) or (Z) an officer of the Ceding Company with direct responsibility for its administrative services, or any senior officer of the Ceding Company, has actual knowledge that the Ceding Company has failed to perform its obligations under this Section 17.2(a)(i), and in either case the Ceding Company shall have failed to cure such breach within thirty (30) days following receipt of such notice or such actual knowledge.

(ii)An Existing Practice may be reasonably modified from time to time, except that, to the extent the Ceding Company modifies an Existing Practice from time to time following January 1, 2016 (an Existing Practice, as modified from time to time, a “Then Current Practice”), the Ceding Company shall act in accordance and consistent with the Then Current Practice; provided, that, if a Then Current Practice would materially adversely affect the rights, remedies and position of the Reinsurer, the Ceding Company shall obtain the consent of the Reinsurer (which consent shall not be unreasonably withheld, conditioned or delayed) prior to applying the Then Current Practice to the Reinsured Policies.

18

 

(b)Reinsured Policies.  In all instances as they relate to the Reinsured Policies:

(i)The Ceding Company shall not, and shall cause its Affiliates not to (A) change agent commission and compensation schedules, (B) adopt or implement any program that is expected to result in a material increase in lapses, exchanges, replacements or Conversions under the Reinsured Policies or (C) change coverage options or premiums (except as contemplated by Section 17.2(f) hereof), including coverage options for End of Term Conversions, in each case under (A), (B) and (C) without notifying the Reinsurer in advance of any such action and obtaining the Reinsurer's prior written consent (which shall not be unreasonably withheld, conditioned or delayed).

(ii)The Ceding Company and the Reinsurer shall reasonably cooperate on any proposals for pricing or coverage changes proposed by either Party, including making any rate and form filings or other regulatory filings that impact pricing or premiums under the Reinsured Policies; provided, however, the Ceding Company shall have final approval authority in its discretion over any proposal brought by the Reinsurer pursuant to this Section 17.2(b)(ii).

(iii)The Parties agree and acknowledge that the Ceding Company's relationship with the Reinsurer shall in all respects be governed by a duty of utmost good faith.  At all times during the term of this Agreement, the Ceding Company shall (i) administer, manage and oversee the Reinsured Policies and the Covered Liabilities, and (ii) perform all its obligations to the Reinsurer under this Agreement, in a manner consistent with its utmost good faith obligations.

(c)Third Party Reinsurance.

(i)The Ceding Company shall not, without the Reinsurer's prior approval (which approval shall not be unreasonably or arbitrarily withheld, conditioned or delayed), (A) terminate or materially modify any existing Third Party Reinsurance or (B) purchase new third party reinsurance for the Reinsured Policies.

(ii)The Ceding Company shall use commercially reasonable efforts to maintain its existing Third Party Reinsurance from and after the Effective Date, consistent with the existing practice of the Ceding Company in effect on the Effective Date.

(d)Reporting.  To the extent not prohibited by Applicable Law, the Ceding Company will provide all reports it is required to deliver under this Agreement (including, without limitation, each Monthly Report and Quarterly Report) not later than the last date on which such report is required to be so delivered, except that the Ceding Company shall not be in breach of this Section 17.2(d) unless either (i) the Reinsurer shall have notified the Ceding Company in writing of its failure to timely deliver such report or (ii) an officer of the Ceding Company with direct responsibility for the preparation and delivery of such report has actual knowledge that the report was not delivered when due, and in either case the Ceding Company shall have failed to deliver such information within thirty (30) days following receipt of such notice or actual knowledge.

(e)Books and Records.  The Ceding Company shall maintain and implement reasonable administrative and operating procedures with respect to records relating to the Reinsured Policies and shall keep and maintain all material documents, books, records and other information reasonably necessary for the maintenance of the Reinsured Policies, which documents, books, records and other information will be accurately maintained in all material respects throughout the term of this Agreement.

(f)Reinsurance Credit Notice.  Without limitation of the Ceding Company's rights under Article XI, and so long as no event described in Section 11.1 giving rise to a right of recapture hereunder by the Ceding Company has occurred and is continuing, following the delivery of a Reinsurance Credit Notice, the Ceding Company will, promptly upon any written request delivered by the Reinsurer within five (5) Business Days of delivery of such Reinsurance Credit Notice, discuss in good faith with the Reinsurer and consider whether to (i) make such modifications as may be needed to this Agreement and the Reinsurance Trust Agreement or (ii) enter into new agreements, in each case, as may be necessary to cure any denial of Statutory Financial Statement Credit by any insurance regulatory Governmental Authority.  For the avoidance of doubt, the foregoing shall not require the Ceding Company to take actions that would be adverse to the Ceding Company in its sole discretion.

19

 

Section 17.3Representations and Warranties of the Reinsurer.

(a)Organization, Standing and Authority of the Reinsurer.  The Reinsurer is a special purpose financial insurance company duly organized, validly existing and in good standing under the laws of the State of Vermont and has all requisite corporate power and authority to carry on the operations of its business as they are proposed to be conducted.  The Reinsurer has obtained all authorizations and approvals required under Applicable Law to enter into and perform the obligations contemplated of the Reinsurer under this Agreement and the Reinsurer shall maintain throughout the term of this Agreement all licenses, permits or other permissions of any Governmental Authority that shall be required in order to perform the obligations of the Reinsurer hereunder.

(b)Authorization.  The Reinsurer has all requisite corporate power and authority to enter into this Agreement and to perform its obligations hereunder.  The execution and delivery by the Reinsurer of this Agreement, and the performance by the Reinsurer of its obligations under this Agreement, have been duly authorized by all necessary corporate action and do not require any further authorization, action or consent of the Reinsurer or its stockholder.  This Agreement, when duly executed and delivered by the Reinsurer, subject to the due execution and delivery by the Ceding Company, will be a valid and binding obligation of the Reinsurer, enforceable against the Reinsurer in accordance with its terms, in each case subject to bankruptcy, insolvency, reorganization, moratorium and similar laws of general application relating to or affecting enforcement of creditors' rights and to general equity principles.

(c)No Conflict or Violation.  The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby will not (a) violate any provision of the Articles of Incorporation, Bylaws or other charter or organizational document of the Reinsurer, or (b) violate any order, judgment, injunction, award or decree of any court, arbitrator or Governmental Authority against, or binding upon, or any agreement with, or condition imposed by, any Governmental Authority, foreign or domestic, binding upon the Reinsurer, except when any such violation would not have a material adverse effect on this Agreement or the consummation of the transactions contemplated hereby.

(d)Absence of Litigation.  There is no action, suit, proceeding or investigation pending or threatened that questions the legality of the transactions contemplated by this Agreement or that would prevent consummation of the transactions contemplated by this Agreement or the performance by the Reinsurer of its obligations hereunder.

Section 17.4Covenants of the Reinsurer.

(a)The Reinsurer shall comply with all covenants that are memorialized in Section IV.C. “Other Agreements” in the Reinsurer's plan of operation as filed with the Commissioner prior to the Restatement Date.  The Reinsurer shall not amend, modify or change, or request or petition for any amendment, modification or change to such covenants without the Ceding Company's prior written consent.

(b)The Reinsurer shall not redomesticate or change its domiciliary jurisdiction without the Ceding Company's prior written consent, such consent not to be unreasonably withheld, conditioned or delayed.

(c)The Reinsurer shall not, without the prior written consent of the Massachusetts Division of Insurance, amend this Agreement (other than Schedule C) or the Reinsurance Trust Agreement.

(d)The Reinsurer shall not engage in any business, other than the business provided by or relating to this Agreement, the Collateralized Stop Loss Reinsurance Agreement, the Excess of Loss Reinsurance Agreement and as permitted by Section 21.9.  Other than the reinsurance provided hereunder, the Reinsurer shall not issue or reinsure any insurance policies.

20

 

ARTICLE XVIII

INDEMNIFICATION

Section 18.1Indemnification.

(a)The Ceding Company shall indemnify, defend and hold harmless the Reinsurer and its directors, officers, employees, agents, representatives, successors, permitted assigns and Affiliates from and against any and all losses, liabilities, claims, expenses (including reasonable attorneys' fees and expenses) and damages reasonably and actually incurred by the Reinsurer (collectively, “Indemnification Claims”) to the extent arising from:

(i)any breach or falsity of any representation, warranty or covenant of the Ceding Company; or

(ii)the breach of or failure to perform any of the duties, obligations, covenants or agreements of the Ceding Company contained in this Agreement.

(b)The Reinsurer agrees to indemnify and hold harmless the Ceding Company and its directors, officers, employees, agents, representatives, successors, permitted assigns and Affiliates from and against any and all Indemnification Claims to the extent arising from:

(i)any breach or falsity of any representation, warranty or covenant of the Reinsurer; or

(ii)the breach of or failure to perform any of the duties, obligations, covenants or agreements of the Reinsurer contained in this Agreement.

ARTICLE XIX

LICENSES; REGULATORY MATTERS

Section 19.1Licenses.

(a)At all times during the term of this Agreement, each of the Reinsurer and the Ceding Company, respectively agrees that it shall hold and maintain all licenses and authorities required under Applicable Laws to perform its respective obligations hereunder unless otherwise mutually agreed by the parties.

(b)At all times during the term of this Agreement, the Reinsurer shall hold and maintain all licenses and authorizations required under Applicable Law or otherwise take all action that may be necessary so that the Ceding Company shall receive Statutory Financial Statement Credit.

Section 19.2Regulatory Matters.

(a)If Ceding Company or Reinsurer receives notice of, or otherwise becomes aware of any inquiry, investigation, examination, audit or proceeding outside the ordinary course of business by Governmental Authorities, relating to the Reinsured Policies or the reinsurance provided hereunder, the Ceding Company or Reinsurer, as applicable, shall promptly notify the other party thereof.

(b)If Ceding Company or Reinsurer receives notice of, or otherwise becomes aware of any enforcement action by any Governmental Authority arising out of any inquiry, investigation, examination, audit or proceeding by such Governmental Authority, the Ceding Company or Reinsurer, as applicable, shall promptly notify the other party thereof, and the Parties shall cooperate to resolve such matter.

21

 

ARTICLE XX

DURATION OF AGREEMENT; TERMINATION

Section 20.1Duration.  This Agreement shall automatically terminate if, at such time, there are no Covered Liabilities.

Section 20.2Termination.  This Agreement shall be terminated only by the mutual written consent of the Reinsurer and the Ceding Company, which writing shall state the effective date and relevant terms of termination or by the Reinsurer pursuant to Section 21.8.  For the avoidance of doubt, a Change of Control, sale or merger of the Reinsurer will not result in termination of this Agreement.

Section 20.3Survival.  Notwithstanding the other provisions of this Article XX, the terms and conditions of Articles I, IV, V, VIII, X, XI, XII, XIV, XV, XVI, XX and XXI shall remain in full force and effect after termination of this Agreement.

ARTICLE XXI

MISCELLANEOUS

Section 21.1Entire Agreement.  Without superseding anything contained in the Transaction Cooperation Agreement, among the Ceding Company, Prime Re, Swiss Re Life & Health America Inc. and Reinsurer, dated January 25, 2016, this Agreement represents the entire agreement between the Reinsurer and the Ceding Company concerning the business reinsured hereunder.  There are no understandings between the Reinsurer and the Ceding Company other than as expressed in this Agreement and the Reinsurance Trust Agreement.

Section 21.2Amendments.

(a)Any provision of this Agreement may be amended if, but only if, such amendment is in writing and is signed by each party to this Agreement; provided, that the Ceding Company shall not unreasonably withhold, condition or delay its consent to any amendment, change or modification to Schedule C proposed by the Reinsurer with at least forty-five (45) days prior written notice, subject to the provision by the Reinsurer of any information reasonably requested in connection with such proposed amendment, modification or change; it being acknowledged and agreed that it would be unreasonable for the Ceding Company to withhold, condition or delay its consent to any amendment, modification or change to Schedule C that is not adverse to the Ceding Company.  Any change or modification to this Agreement shall be null and void unless made by an amendment hereto signed by each party to this Agreement.

(b)No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

Section 21.3Severability.  If any provision of this Agreement is held to be illegal, invalid or unenforceable under any present or future law or if determined by a court of competent jurisdiction to be unenforceable, and if the rights or obligations of the Ceding Company or the Reinsurer under this Agreement will not be materially and adversely affected thereby, such provision shall be fully severable, and this Agreement will be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this Agreement, and the remaining provisions of this Agreement shall remain in full force and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom.

Section 21.4Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts, without giving effect to the principles of conflicts of law thereof.

22

 

Section 21.5Notices.  Any notice and other communication required or permitted hereunder shall be in writing and shall be delivered personally or sent by certified, registered or express mail, postage prepaid.  Any such notice shall be deemed given when so delivered personally or, if mailed, on the date shown on the receipt therefore, as follows:

if to the Ceding Company:

Primerica Life Insurance Company

1 Primerica Parkway

Duluth, Georgia 30099

Attention: General Counsel

with copies to (which shall not constitute notice to the Ceding Company for purposes of this Section 21.5):

DLA Piper LLP (US)
1251 Avenue of the Americas, 27th Floor
New York, NY 10020

Attention: David D. Luce

if to the Reinsurer:

Pecan Re Inc.

c/o Marsh Management Services, Inc.

P.O. Box 530

100 Bank Street, Suite 610 
Burlington, Vermont 05402-0530 
Attention: Kimberly Whitcomb

with copies to (which shall not constitute notice to the Reinsurer for purposes of this Section 21.5):

Swiss Re Life & Health America Inc.

175 King Street

Armonk, New York 10504

Attention:John Regan

and

Swiss Re Life & Health America Inc.

175 King Street

Armonk, New York 10504

Attention:Reka Koerner

and

Debevoise & Plimpton LLP 
919 Third Avenue
New York, New York 10022
Attention:Alexander R. Cochran

Either Party may change the names or addresses where notice is to be given by providing notice to the other Party of such change in accordance with this Section 21.5.

Section 21.6Consent to Jurisdiction.  Subject to the terms and conditions of Article XIV, the Reinsurer agrees that in the event of the failure of either Party to perform its obligations under the terms of this Agreement, the Party so failing to perform, at the request of the other Party, shall submit to the jurisdiction of any court of competent jurisdiction in any state of the United States shall comply with all requirements necessary to give such court jurisdiction, and shall abide by the final decision of such court or of any appellate court in the event of an appeal.

23

 

Section 21.7Service of Process.  The Reinsurer hereby designates Marsh Management Services, Inc., P.O. Box 530, 100 Bank Street, Suite 610, Burlington, Vermont 05402-0530 as its true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Ceding Company.  The Ceding Company hereby designates CT Corporation System, 155 Federal Street, Suite 700, Boston, Massachusetts 02110, and the insurance commissioner in Reinsurer's state of domicile, as its true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Reinsurer.

Section 21.8Failure to Pay. If the Ceding Company fails to pay any Net Premiums that are due within 20 Business Days of the Ceding Company receiving written notice from the Reinsurer that Net Premiums are past due, the Reinsurer will have the right to terminate this Agreement and the reinsurance provided hereunder upon at least five (5) Business Days written notice to the Ceding Company specifying the termination effective date; provided, however, that upon any such termination effective date unless on or prior to such termination effective date the Reinsurer pays such Net Premiums and any interest thereon in full, (i) in accordance with Section 11.5, the Reinsurer shall pay the Ceding Company a Commutation Payment, unless the amount thereof is negative, in which case the Ceding Company shall pay the absolute value thereof to the Reinsurer and (ii) the Ceding Company shall pay a Recapture Fee to the Reinsurer.  The Ceding Company will not cease paying any Net Premiums that are due or any other amounts in an effort to force or encourage the Reinsurer to exercise its termination rights under this Section 21.8.

Section 21.9Assignment and Retrocession.  This Agreement will inure to the benefit of and be binding upon the respective successors and permitted assigns of the Parties.  Neither Party may assign any of its duties or obligations hereunder without the prior written consent of the other Party or without the prior written consent of the regulatory states; provided, that the Reinsurer may assign its rights under Sections 15.3(c) and 15.6, including any enforcement rights against the Ceding Company under such sections, to Prime Re for so long as the Collateralized Stop Loss Reinsurance Agreement remains in effect.  Notwithstanding any other provision in this Agreement to the contrary, the Reinsurer shall have the right to retrocede all or a portion of the Reinsured Policies under this Agreement.

Section 21.10Captions.  The captions contained in this Agreement are for reference only and are not part of the Agreement.

Section 21.11Treatment of Confidential Information.  The Parties agree that, other than as contemplated by this Agreement and to the extent permitted or required to implement the transactions contemplated hereby, the Parties will keep confidential and will not use or disclose the other Party's Confidential Information or the terms and conditions of this Agreement, including, without limitation, the exhibits and schedules hereto, except as otherwise required by Applicable Law or any order or ruling of any state insurance regulatory authority, the Securities and Exchange Commission or any other Governmental Authority; provided, however, that the Reinsurer may disclose Confidential Information to its Representatives in connection with the exercise of its rights under Article XII; provided, further, that either party may disclose, with the other party's written consent, Confidential Information to any person other than its Representatives who agrees to (i) hold such Confidential Information in strict confidence as if such person were a party to this Agreement and (ii) use such Confidential Information solely for the limited purpose of evaluating a potential purchase, merger or Change of Control of such Party.  Without limiting the generality of the foregoing, neither the Reinsurer nor any Affiliates of the Reinsurer shall utilize any Confidential Information regarding Policyholders for the purpose of soliciting Policyholders for the sale of any insurance policies or other products or services.  The parties agree that any violation or threatened violation of this Section 21.11 may cause irreparable injury to a party and that, in addition to any other remedies that may be available, each party shall be entitled to seek injunctive relief against the threatened breach of the provisions of this Section 21.11, or a continuation of any such breach by the other party or any person provided with Confidential Information, specific performance and other such relief to redress such breach together with damages and reasonable counsel fees and expenses to enforce its rights hereunder.  For purposes of this Agreement, “Confidential Information” means all documents and information concerning one Party, any of its Affiliates, the Covered Liabilities or the Reinsured Policies, including any information relating to any person insured directly or indirectly under the Reinsured Policies, furnished to the other Party or such other Party's Affiliates or representatives in connection with this Agreement or the transactions contemplated hereby, except that Confidential Information shall not include information which:  (a) at the time of disclosure or thereafter is generally available to and known by the public other than by way of a wrongful disclosure by a Party or by any representative of a Party; (b) was available 

24

 

on a nonconfidential basis from a source other than the Parties or their representatives, provided that such source is not and was not bound by a confidentiality agreement with a Party; or (c) was independently developed without violating any obligations under this Agreement and without the use of any Confidential Information.  For the purposes of this Agreement, “Change of Control” means the acquisition of ten percent (10%) or more of the voting securities of a Party or any parent of such Party, or any other acquisition that is deemed to be a Change of Control by applicable insurance regulatory authorities of the state of domicile of such Party.

Section 21.12No Waiver; Preservation of Remedies.  No consent or waiver, express or implied, by any Party to or of any breach or default by any other Party in the performance by such other Party of its obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance of obligations hereunder by such other Party hereunder.  Failure on the part of any Party to complain of any act or failure to act of any other Party or to declare any other Party in default, irrespective of how long such failure continues, shall not constitute a waiver by such first Party of any of its rights hereunder.

Section 21.13Calendar Days.  To the extent that any calendar day on which a deliverable pursuant to this Agreement is due is not a Business Day, such deliverable will be due the next Business Day.

Section 21.14Counterparts.  This Agreement may be executed in one or more counterparts, all of which taken together shall constitute one and the same instrument, and either of the Parties may execute this Agreement by signing such counterpart.  This Agreement shall become effective when each party hereto shall have received a counterpart hereof signed by the other party hereto.

Section 21.15Incontestability.  In consideration of the mutual covenants and agreements contained herein, each party hereto does hereby agree that this Agreement, and each and every provision hereof, is and shall be enforceable by and between them according to its terms, and each party does hereby agree that it shall not contest the validity or enforceability hereof.

Section 21.16Interpretation.

(a)When a reference is made in this Agreement to a Section, such reference shall be to a Section to this Agreement unless otherwise indicated.  The Section headings contained in this Agreement are solely for the purpose of reference, are not part of the agreement of the parties and shall not affect in any way the meaning or interpretation of this Agreement.  Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.”  The words “hereof”, “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement.  The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such term.  Any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes.  References to a person are also to its permitted successors and assigns.

(b)The parties have participated jointly in the negotiation and drafting of this Agreement; consequently, in the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties thereto, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement.

Section 21.17Reasonableness.  Each of the parties will act reasonably and in good faith on all matters within the terms of this Agreement.

 

 

 

25

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

 

	
PRIMERICA LIFE INSURANCE COMPANY

	
By:
	
 
	
/s/Dan Settle

	
Name:
	
 
	
Dan Settle

	
Title:
	
 
	
Executive Vice President

	
 
	
 
	
 

	
 
	
 
	
PECAN RE INC.

	
 
	
 
	
 

	
By:
	
 
	
/s/Brian Lo

	
Name:
	
 
	
Brian Lo

	
Title:
	
 
	
President

	
 
	
 
	
 

	
By:
	
 
	
/s/John Gribbon

	
Name:
	
 
	
John Gribbon

	
Title:
	
 
	
Sr. Vice President and CFO

 

 

 

[Signature Page to the Amended and Restated 80% Coinsurance Agreement]

 

Schedule A

Identification of Reserves

Exhibit 5 Policy Reserves

	
 
	
•
	
Life Insurance Reserves 

	
 
	
•
	
Disability — Active Lives Reserves

	
 
	
•
	
Disability — Disabled Lives Reserves

	
 
	
•
	
Miscellaneous Reserves 

Exhibit 8 Claim Reserves

	
 
	
•
	
Pending Claims

	
 
	
•
	
Incurred but Not Reported Claims

	
 
	
•
	
Amounts Recoverable on Paid Claims

 

 

 

A-1

 

Schedule B

No Conflict or Violation Exceptions

None.

 

 

 

B-1

 

Schedule C

Stop Loss Assets Amount

 

	
Calendar Quarter End Date
	
Stop Loss Assets Amount ($mm)

	
December 31, 2015
	
1819

	
March31, 2016
	
1743

	
June 30, 2016
	
1668

	
September 30, 2016
	
1592

	
December 31, 2016
	
1516

	
March 31, 2017
	
1443

	
June 30, 2017
	
1369

	
September 30, 2017
	
1296

	
December 31, 2017
	
1222

	
March 31, 2018
	
1154

	
June 30, 2018
	
1086

	
September 30, 2018
	
1017

	
December 31, 2018
	
749

	
March 31, 2019
	
686

	
June 30, 2019
	
624

	
September 30, 2019
	
561

	
December 31, 2019
	
498

	
March 31, 2020
	
436

	
June 30, 2020
	
374

	
September 30, 2020
	
312

	
December 31, 2020
	
250

	
March 31, 2021
	
192

	
June 30, 2021
	
134

	
September 30, 2021
	
76

	
December 31, 2021
	
18

	
at all times after January 1, 2022
	
—

 

 

 

C-1

 

Exhibit I

Identification of Reinsured Policies

 

I-1

 

Exhibit I - Identification of Reinsured Policies

 

	
PLAN
	
 
	
FORM
	
 
	
POLICIES
	
 
	
RIDERS
	
 
	
FACE AMOUNT

	
$$ 10
	
 
	
ML-301S 10
	
 
	
—
	
 
	
12
	
 
	
215,000

	
 
	
 
	
ML-421(10)S
	
 
	
—
	
 
	
3
	
 
	
40,000

	
 
	
 
	
TD 65/20 S
	
 
	
4
	
 
	
—
	
 
	
41,763

	
 
	
 
	
 
	
 
	
4
	
 
	
15
	
 
	
296,763

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
$$ 10 REN
	
 
	
ML-301S 10
	
 
	
—
	
 
	
35
	
 
	
471,000

	
 
	
 
	
ML-421(10)S
	
 
	
—
	
 
	
117
	
 
	
1,644,065

	
 
	
 
	
TD 65/20S
	
 
	
142
	
 
	
—
	
 
	
1,997,943

	
 
	
 
	
 
	
 
	
142
	
 
	
152
	
 
	
4,113,008

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
$$ 12REN
	
 
	
ML-301S
	
 
	
—
	
 
	
7
	
 
	
70,000

	
 
	
 
	
TD 12/2 S
	
 
	
20
	
 
	
—
	
 
	
663,000

	
 
	
 
	
 
	
 
	
20
	
 
	
7
	
 
	
733,000

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
ADD ON
	
 
	
ML-767
	
 
	
—
	
 
	
29
	
 
	
580,000

	
 
	
 
	
ML-777
	
 
	
—
	
 
	
11
	
 
	
220,000

	
 
	
 
	
 
	
 
	
—
	
 
	
40
	
 
	
800,000

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
ART
	
 
	
ML-875
	
 
	
—
	
 
	
16
	
 
	
735,000

	
 
	
 
	
ML-901 W
	
 
	
—
	
 
	
34
	
 
	
2,623,000

	
 
	
 
	
ML-901A
	
 
	
—
	
 
	
5
	
 
	
450,000

	
 
	
 
	
ML-901X
	
 
	
—
	
 
	
243
	
 
	
16,438,000

	
 
	
 
	
ML-911
	
 
	
—
	
 
	
14
	
 
	
475,000

	
 
	
 
	
ML-911 W
	
 
	
—
	
 
	
142
	
 
	
8,658,000

	
 
	
 
	
ML-911 X
	
 
	
—
	
 
	
10
	
 
	
770,000

	
 
	
 
	
ML-911A
	
 
	
—
	
 
	
8
	
 
	
205,000

	
 
	
 
	
ML-911X
	
 
	
—
	
 
	
336
	
 
	
14,710,000

	
 
	
 
	
 
	
 
	
—
	
 
	
808
	
 
	
45,064,000

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
A10
	
 
	
A-10
	
 
	
3,689
	
 
	
—
	
 
	
278,421,629

	
 
	
 
	
A-10I
	
 
	
—
	
 
	
6,202
	
 
	
396,324,349

	
 
	
 
	
A-10S
	
 
	
—
	
 
	
5,974
	
 
	
350,411,170

	
 
	
 
	
 
	
 
	
3,689
	
 
	
12,176
	
 
	
1,025,157,148

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
A10B
	
 
	
A-10B
	
 
	
19,189
	
 
	
—
	
 
	
2,481,429,480

	
 
	
 
	
A-10IB
	
 
	
—
	
 
	
15,808
	
 
	
1,405,224,997

	
 
	
 
	
A-10IBNJ
	
 
	
—
	
 
	
324
	
 
	
29,500,000

	
 
	
 
	
A-10SB
	
 
	
—
	
 
	
21,967
	
 
	
1,726,249,304

	
 
	
 
	
A-10SBNJ
	
 
	
—
	
 
	
579
	
 
	
48,287,840

	
 
	
 
	
 
	
 
	
19,189
	
 
	
38,678
	
 
	
5,690,691,621

 

 

I-2

 

Exhibit I - Identification of Reinsured Policies

 

	
PLAN
	
 
	
FORM
	
 
	
POLICIES
	
 
	
RIDERS
	
 
	
FACE AMOUNT

	
BART
	
 
	
BART
	
 
	
615
	
 
	
—
	
 
	
56,082,000

	
 
	
 
	
BART(85)
	
 
	
83
	
 
	
—
	
 
	
7,688,000

	
 
	
 
	
BART(85) MO
	
 
	
179
	
 
	
—
	
 
	
16,681,000

	
 
	
 
	
BART(85) MT
	
 
	
1
	
 
	
—
	
 
	
100,000

	
 
	
 
	
 
	
 
	
878
	
 
	
—
	
 
	
80,551,000

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
BART 100
	
 
	
BART-100
	
 
	
408
	
 
	
—
	
 
	
70,873,712

	
 
	
 
	
BART-100OR
	
 
	
3
	
 
	
—
	
 
	
750,000

	
 
	
 
	
BART-101
	
 
	
—
	
 
	
16
	
 
	
2,615,001

	
 
	
 
	
BART-102
	
 
	
—
	
 
	
34
	
 
	
2,147,200

	
 
	
 
	
BART-200
	
 
	
12
	
 
	
—
	
 
	
2,115,000

	
 
	
 
	
BART-300
	
 
	
409
	
 
	
—
	
 
	
58,325,599

	
 
	
 
	
 
	
 
	
832
	
 
	
50
	
 
	
136,826,512

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
B20
	
 
	
B-20
	
 
	
41,043
	
 
	
—
	
 
	
5,111,385,327

	
 
	
 
	
B-20I
	
 
	
—
	
 
	
6,580
	
 
	
669,617,925

	
 
	
 
	
B-20S
	
 
	
—
	
 
	
25,750
	
 
	
2,503,896,739

	
 
	
 
	
 
	
 
	
41,043
	
 
	
32,330
	
 
	
8,284,899,991

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
B20B
	
 
	
B-20B
	
 
	
46,306
	
 
	
—
	
 
	
7,127,569,620

	
 
	
 
	
B-20IB
	
 
	
—
	
 
	
6,542
	
 
	
748,481,812

	
 
	
 
	
B-20IBNJ
	
 
	
—
	
 
	
109
	
 
	
12,810,500

	
 
	
 
	
B-20SB
	
 
	
—
	
 
	
29,056
	
 
	
3,394,085,205

	
 
	
 
	
B-20SBNJ
	
 
	
—
	
 
	
1,052
	
 
	
152,046,000

	
 
	
 
	
 
	
 
	
46,306
	
 
	
36,759
	
 
	
11,434,993,137

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
CART
	
 
	
CART
	
 
	
187
	
 
	
—
	
 
	
2,457,553

	
 
	
 
	
CARTNS
	
 
	
786
	
 
	
—
	
 
	
14,375,131

	
 
	
 
	
CARTNSR
	
 
	
—
	
 
	
106
	
 
	
1,713,336

	
 
	
 
	
CARTS
	
 
	
26
	
 
	
—
	
 
	
400,751

	
 
	
 
	
CARTSP
	
 
	
—
	
 
	
24
	
 
	
172,976

	
 
	
 
	
CARTSR
	
 
	
—
	
 
	
3
	
 
	
28,750

	
 
	
 
	
NO FORMCART
	
 
	
530
	
 
	
69
	
 
	
10,721,612

	
 
	
 
	
 
	
 
	
1,529
	
 
	
202
	
 
	
29,870,109

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
CHILD RIDER
	
 
	
CH-25
	
 
	
—
	
 
	
99,987
	
 
	
2,037,471,000

	
 
	
 
	
CP-CH
	
 
	
—
	
 
	
519,939
	
 
	
12,281,632,100

	
 
	
 
	
ML-309 S
	
 
	
—
	
 
	
254
	
 
	
2,420,000

	
 
	
 
	
ML-909
	
 
	
—
	
 
	
3,421
	
 
	
40,011,010

	
 
	
 
	
ML-909 B
	
 
	
—
	
 
	
61,360
	
 
	
887,806,500

	
 
	
 
	
ML-909A
	
 
	
—
	
 
	
1,263
	
 
	
16,124,000

 

 

I-3

 

Exhibit I - Identification of Reinsured Policies

 

	
PLAN
	
 
	
FORM
	
 
	
POLICIES
	
 
	
RIDERS
	
 
	
FACE AMOUNT

	
CHILD RIDER
	
 
	
ML-909AR
	
 
	
—
	
 
	
1,153
	
 
	
15,314,000

	
 
	
 
	
ML-917
	
 
	
—
	
 
	
8
	
 
	
76,000

	
 
	
 
	
PL-CR
	
 
	
—
	
 
	
101,605
	
 
	
1,923,587,000

	
 
	
 
	
 
	
 
	
—
	
 
	
788,990
	
 
	
17,204,441,610

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
CONV DT100
	
 
	
DT-1000X
	
 
	
—
	
 
	
17
	
 
	
110,178

	
 
	
 
	
NO FORM DTC
	
 
	
6,263
	
 
	
2,232
	
 
	
106,742,022

	
 
	
 
	
 
	
 
	
6,263
	
 
	
2,249
	
 
	
106,852,200

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
CST
	
 
	
ML-T90
	
 
	
19,318
	
 
	
—
	
 
	
1,617,173,172

	
 
	
 
	
ML-T90OR
	
 
	
114
	
 
	
—
	
 
	
9,902,000

	
 
	
 
	
ML-T95
	
 
	
69,424
	
 
	
—
	
 
	
6,146,403,242

	
 
	
 
	
ML-T95MD
	
 
	
2,439
	
 
	
—
	
 
	
225,706,120

	
 
	
 
	
ML-867 S
	
 
	
—
	
 
	
92
	
 
	
4,990,000

	
 
	
 
	
ML-867A
	
 
	
—
	
 
	
2,055
	
 
	
127,531,955

	
 
	
 
	
ML-867AMD
	
 
	
—
	
 
	
67
	
 
	
4,016,000

	
 
	
 
	
ML-867S
	
 
	
—
	
 
	
10
	
 
	
405,000

	
 
	
 
	
ML-877A
	
 
	
—
	
 
	
33,118
	
 
	
1,786,297,369

	
 
	
 
	
ML-877AMD
	
 
	
—
	
 
	
1,073
	
 
	
69,243,000

	
 
	
 
	
ML-877S
	
 
	
—
	
 
	
9,181
	
 
	
439,663,292

	
 
	
 
	
ML-877SOR
	
 
	
—
	
 
	
57
	
 
	
2,819,000

	
 
	
 
	
ML-887 S
	
 
	
—
	
 
	
278
	
 
	
7,416,000

	
 
	
 
	
ML-887A
	
 
	
—
	
 
	
1,774
	
 
	
48,475,900

	
 
	
 
	
ML-887AMD
	
 
	
—
	
 
	
78
	
 
	
1,975,000

	
 
	
 
	
ML-887S
	
 
	
—
	
 
	
28
	
 
	
545,000

	
 
	
 
	
 
	
 
	
91,295
	
 
	
47,811
	
 
	
10,492,562,050

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
C25 LEVEL
	
 
	
C-25
	
 
	
36,565
	
 
	
—
	
 
	
5,298,618,351

	
 
	
 
	
C-25I
	
 
	
—
	
 
	
2,691
	
 
	
327,332,299

	
 
	
 
	
C-25IX
	
 
	
—
	
 
	
365
	
 
	
54,279,099

	
 
	
 
	
C-25S
	
 
	
—
	
 
	
21,214
	
 
	
2,482,828,024

	
 
	
 
	
C-25SX
	
 
	
—
	
 
	
3,703
	
 
	
521,706,299

	
 
	
 
	
C-25X
	
 
	
5,897
	
 
	
—
	
 
	
1,067,003,314

	
 
	
 
	
 
	
 
	
42,462
	
 
	
27,973
	
 
	
9,751,767,386

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
C25B
	
 
	
C-25B
	
 
	
63,418
	
 
	
—
	
 
	
10,484,273,839

	
 
	
 
	
C-25IB
	
 
	
—
	
 
	
3,855
	
 
	
484,574,536

	
 
	
 
	
C-25IBNJ
	
 
	
—
	
 
	
76
	
 
	
12,874,000

	
 
	
 
	
C-25SB
	
 
	
—
	
 
	
33,356
	
 
	
4,618,655,588

	
 
	
 
	
C-25SBNJ
	
 
	
—
	
 
	
1,482
	
 
	
253,885,000

	
 
	
 
	
 
	
 
	
63,418
	
 
	
38,769
	
 
	
15,854,262,963

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
C4-10IB
	
 
	
—
	
 
	
115,613
	
 
	
8,043,108,434

	
C4IBR10
	
 
	
C4-10SB
	
 
	
—
	
 
	
57,571
	
 
	
3,652,087,750

	
 
	
 
	
 
	
 
	
—
	
 
	
173,184
	
 
	
11,695,196,184

 

 

I-4

 

Exhibit I - Identification of Reinsured Policies

 

	
PLAN
	
 
	
FORM
	
 
	
POLICIES
	
 
	
RIDERS
	
 
	
FACE AMOUNT

	
C4IBR5
	
 
	
C4-5IB
	
 
	
—
	
 
	
81,949
	
 
	
3,109,314,910

	
 
	
 
	
C4-5SB
	
 
	
—
	
 
	
42,201
	
 
	
1,446,605,810

	
 
	
 
	
 
	
 
	
—
	
 
	
124,150
	
 
	
4,555,920,720

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
C410
	
 
	
C4-I10
	
 
	
—
	
 
	
43,168
	
 
	
4,723,448,083

	
 
	
 
	
C4-Sl0
	
 
	
—
	
 
	
138,215
	
 
	
10,608,149,425

	
 
	
 
	
C4-10
	
 
	
200,844 
	
 
	
—
	
 
	
22,578,357,011

	
 
	
 
	
 
	
 
	
200,844
	
 
	
181,383
	
 
	
37,909,954,519

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
C415
	
 
	
C4-I15
	
 
	
—
	
 
	
18,674
	
 
	
2,322,209,846

	
 
	
 
	
C4-S15
	
 
	
—
	
 
	
44,022
	
 
	
4,921,592,696

	
 
	
 
	
C4-l5
	
 
	
64,986
	
 
	
—
	
 
	
9,046,327,346

	
 
	
 
	
 
	
 
	
64,986
	
 
	
62,696
	
 
	
16,290,129,888

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
C420
	
 
	
C4-I20
	
 
	
—
	
 
	
23,609
	
 
	
3,622,066,590

	
 
	
 
	
C4-S20
	
 
	
—
	
 
	
99,223
	
 
	
14,346,340,732

	
 
	
 
	
C4-20
	
 
	
163,597
	
 
	
—
	
 
	
29,013,813,050

	
 
	
 
	
 
	
 
	
163,597
	
 
	
122,832
	
 
	
46,982,220,372

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
C425
	
 
	
C4-I25
	
 
	
—
	
 
	
5,695
	
 
	
809,524,971

	
 
	
 
	
C4-S25
	
 
	
—
	
 
	
19,968
	
 
	
3,643,093,897

	
 
	
 
	
C4-25
	
 
	
28,333
	
 
	
—
	
 
	
6,388,962,299

	
 
	
 
	
 
	
 
	
28,333
	
 
	
25,663
	
 
	
10,841,581,167

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
C430
	
 
	
C4-I30
	
 
	
—
	
 
	
9,953
	
 
	
1,776,376,796

	
 
	
 
	
C4-S30
	
 
	
—
	
 
	
72,461
	
 
	
14,026,310,685

	
 
	
 
	
C4-30
	
 
	
148,891
	
 
	
—
	
 
	
31,245,530,547

	
 
	
 
	
C4-30MS
	
 
	
1
	
 
	
—
	
 
	
40,000

	
 
	
 
	
 
	
 
	
148,892
	
 
	
82,414
	
 
	
47,048,258,028

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
C435
	
 
	
C4-I35
	
 
	
—
	
 
	
1,756
	
 
	
304,461,497

	
 
	
 
	
C4-I35AFL
	
 
	
—
	
 
	
124
	
 
	
23,555,900

	
 
	
 
	
C4-S35
	
 
	
—
	
 
	
12,845
	
 
	
2,340,377,398

	
 
	
 
	
C4-S35AFL
	
 
	
—
	
 
	
692
	
 
	
138,740,000

	
 
	
 
	
C4-35
	
 
	
40,206
	
 
	
—
	
 
	
6,841,254,800

	
 
	
 
	
C4-35AFL
	
 
	
2,750
	
 
	
—
	
 
	
462,808,300

	
 
	
 
	
 
	
 
	
42,956
	
 
	
15,417
	
 
	
10,111,197,895

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
C5IBR10
	
 
	
C5IBR
	
 
	
—
	
 
	
45,858
	
 
	
1,203,280,860

	
 
	
 
	
C5SBR
	
 
	
—
	
 
	
20,304
	
 
	
506,651,400

	
 
	
 
	
 
	
 
	
—
	
 
	
66,162
	
 
	
1,709,932,260

 

 

I-5

 

Exhibit I - Identification of Reinsured Policies

 

	
PLAN
	
 
	
FORM
	
 
	
POLICIES
	
 
	
RIDERS
	
 
	
FACE AMOUNT

	
C5IBR5
	
 
	
C5IBR
	
 
	
—
	
 
	
27,626
	
 
	
364,510,050

	
 
	
 
	
C5SBR
	
 
	
—
	
 
	
12,562
	
 
	
156,868,150

	
 
	
 
	
 
	
 
	
—
	
 
	
40,188
	
 
	
521,378,200

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
C510
	
 
	
C5
	
 
	
38,912
	
 
	
—
	
 
	
6,634,142,069

	
 
	
 
	
C5IR
	
 
	
—
	
 
	
17,208
	
 
	
2,246,751,204

	
 
	
 
	
C5SR
	
 
	
—
	
 
	
26,642
	
 
	
3,489,261,134

	
 
	
 
	
 
	
 
	
38,912
	
 
	
43,850
	
 
	
12,370,154,407

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
C515
	
 
	
C5
	
 
	
29,286
	
 
	
—
	
 
	
4,657,708,223

	
 
	
 
	
C5IR
	
 
	
—
	
 
	
8,792
	
 
	
1,207,355,616

	
 
	
 
	
C5SR
	
 
	
—
	
 
	
17,211
	
 
	
2,418,471,303

	
 
	
 
	
 
	
 
	
29,286
	
 
	
26,003
	
 
	
8,283,535,142

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
C520
	
 
	
C5
	
 
	
105,903
	
 
	
—
	
 
	
21,047,223,456

	
 
	
 
	
C5IR
	
 
	
—
	
 
	
13,359
	
 
	
2,232,806,421

	
 
	
 
	
C5SR
	
 
	
—
	
 
	
53,488
	
 
	
9,467,983,505

	
 
	
 
	
 
	
 
	
105,903
	
 
	
66,847
	
 
	
32,748,013,382

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
C525
	
 
	
C525
	
 
	
21,952
	
 
	
—
	
 
	
5,231,434,200

	
 
	
 
	
C525IR
	
 
	
—
	
 
	
2,770
	
 
	
466,281,600

	
 
	
 
	
C525SR
	
 
	
—
	
 
	
12,307
	
 
	
2,526,419,300

	
 
	
 
	
 
	
 
	
21,952
	
 
	
15,077
	
 
	
8,224,135,100

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
C530
	
 
	
C5
	
 
	
71,272
	
 
	
—
	
 
	
15,972,695,801

	
 
	
 
	
C5IR
	
 
	
—
	
 
	
4,443
	
 
	
843,630,379

	
 
	
 
	
C5SR
	
 
	
—
	
 
	
32,665
	
 
	
6,716,721,349

	
 
	
 
	
 
	
 
	
71,272
	
 
	
37,108
	
 
	
23,533,047,529

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
C535
	
 
	
C5
	
 
	
77,401
	
 
	
—
	
 
	
13,263,063,232

	
 
	
 
	
C5IR
	
 
	
—
	
 
	
2,189
	
 
	
392,047,100

	
 
	
 
	
C5SR
	
 
	
—
	
 
	
20,498
	
 
	
3,772,519,599

	
 
	
 
	
 
	
 
	
77,401
	
 
	
22,687
	
 
	
17,427,629,931

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
DECR TRM
	
 
	
ML-271
	
 
	
—
	
 
	
62
	
 
	
117,313

	
 
	
 
	
ML-300
	
 
	
—
	
 
	
26
	
 
	
63,906

	
 
	
 
	
 
	
 
	
—
	
 
	
88
	
 
	
181,219

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
DT65
	
 
	
ML-T100
	
 
	
6,259
	
 
	
—
	
 
	
231,309,412

	
 
	
 
	
ML-T100OR
	
 
	
9
	
 
	
—
	
 
	
171,950

	
 
	
 
	
ML-1000
	
 
	
—
	
 
	
1,641
	
 
	
45,971,915

	
 
	
 
	
ML-1000OR
	
 
	
—
	
 
	
3
	
 
	
49,905

	
 
	
 
	
ML-1001
	
 
	
—
	
 
	
3,656
	
 
	
97,104,210

	
 
	
 
	
ML-1001OR
	
 
	
—
	
 
	
5
	
 
	
65,828

	
 
	
 
	
 
	
 
	
6,268
	
 
	
5,305
	
 
	
374,673,219

 

 

I-6

 

Exhibit I - Identification of Reinsured Policies

 

	
PLAN
	
 
	
FORM
	
 
	
POLICIES
	
 
	
RIDERS
	
 
	
FACE AMOUNT

	
D05 BD
	
 
	
ML-D5
	
 
	
213
	
 
	
—
	
 
	
693,500

	
 
	
 
	
ML-1000A
	
 
	
—
	
 
	
3
	
 
	
—

	
 
	
 
	
ML-1001A
	
 
	
—
	
 
	
135
	
 
	
325,000

	
 
	
 
	
ML-1002A
	
 
	
—
	
 
	
4
	
 
	
50,000

	
 
	
 
	
 
	
 
	
213
	
 
	
142
	
 
	
1,068,500

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
D10 BD
	
 
	
ML-D10
	
 
	
527
	
 
	
—
	
 
	
2,619,500

	
 
	
 
	
ML-1000B
	
 
	
—
	
 
	
7
	
 
	
—

	
 
	
 
	
ML-1001B
	
 
	
—
	
 
	
324
	
 
	
1,378,500

	
 
	
 
	
ML-1002B
	
 
	
—
	
 
	
7
	
 
	
125,000

	
 
	
 
	
 
	
 
	
527
	
 
	
338
	
 
	
4,123,000

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
D25 MOD
	
 
	
D-25
	
 
	
2,354
	
 
	
—
	
 
	
219,340,620

	
 
	
 
	
D-25X
	
 
	
462
	
 
	
—
	
 
	
67,305,000

	
 
	
 
	
 
	
 
	
2,816
	
 
	
—
	
 
	
286,645,620

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
EAGLE IBR
	
 
	
PL-104
	
 
	
—
	
 
	
1,234
	
 
	
48,667,900

	
 
	
 
	
PL-105
	
 
	
—
	
 
	
789
	
 
	
21,408,300

	
 
	
 
	
PL-154
	
 
	
—
	
 
	
10,011
	
 
	
571,299,000

	
 
	
 
	
PL-155
	
 
	
—
	
 
	
2,483
	
 
	
105,446,300

	
 
	
 
	
PL-204
	
 
	
—
	
 
	
93,218
	
 
	
4,663,075,650

	
 
	
 
	
PL-205
	
 
	
—
	
 
	
53,776
	
 
	
2,053,882,400

	
 
	
 
	
 
	
 
	
—
	
 
	
161,511
	
 
	
7,463,779,550

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
EAGLE 10
	
 
	
PL-EAGLE 10
	
 
	
10,260
	
 
	
—
	
 
	
558,297,408

	
 
	
 
	
PL-106
	
 
	
—
	
 
	
2,616
	
 
	
190,100,041

	
 
	
 
	
PL-107
	
 
	
—
	
 
	
4,778
	
 
	
242,484,431

	
 
	
 
	
PL-108
	
 
	
—
	
 
	
166
	
 
	
6,759,999

	
 
	
 
	
 
	
 
	
10,260
	
 
	
7,560
	
 
	
997,641,879

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
EAGLE 10E
	
 
	
PL-EAGLE 10
	
 
	
86
	
 
	
—
	
 
	
1,049,000

	
 
	
 
	
PL-106
	
 
	
—
	
 
	
3
	
 
	
24,000

	
 
	
 
	
PL-107
	
 
	
—
	
 
	
8
	
 
	
96,000

	
 
	
 
	
 
	
 
	
86
	
 
	
11
	
 
	
1,169,000

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
EAGLE 15
	
 
	
PL-EAGLE 15
	
 
	
18,165
	
 
	
—
	
 
	
2,450,079,228

	
 
	
 
	
PL-156L
	
 
	
—
	
 
	
1,603
	
 
	
168,772,470

	
 
	
 
	
PL-157L
	
 
	
—
	
 
	
5,591
	
 
	
574,374,174

	
 
	
 
	
PL-158L
	
 
	
—
	
 
	
71
	
 
	
2,477,000

	
 
	
 
	
 
	
 
	
18,165
	
 
	
7,265
	
 
	
3,195,702,872

 

 

I-7

 

Exhibit I - Identification of Reinsured Policies

 

	
PLAN
	
 
	
FORM
	
 
	
POLICIES
	
 
	
RIDERS
	
 
	
FACE AMOUNT

	
EAGLE 20
	
 
	
PL-EAGLE 20
	
 
	
191,096
	
 
	
—
	
 
	
22,860,717,525

	
 
	
 
	
PL-206
	
 
	
—
	
 
	
11,940
	
 
	
1,103,253,571

	
 
	
 
	
PL-207
	
 
	
—
	
 
	
110,592
	
 
	
10,195,409,737

	
 
	
 
	
PL-208
	
 
	
—
	
 
	
2,700
	
 
	
98,881,499

	
 
	
 
	
 
	
 
	
191,096
	
 
	
125,232
	
 
	
34,258,262,332

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
E15
	
 
	
E-15I
	
 
	
—
	
 
	
5,506
	
 
	
436,121,000

	
 
	
 
	
E-15S
	
 
	
—
	
 
	
4,300
	
 
	
312,842,048

	
 
	
 
	
 
	
 
	
—
	
 
	
9,806
	
 
	
748,963,048

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
E15B
	
 
	
E-15B
	
 
	
35,114
	
 
	
—
	
 
	
3,416,406,232

	
 
	
 
	
E-15IB
	
 
	
—
	
 
	
8,917
	
 
	
788,792,244

	
 
	
 
	
E-15IBNJ
	
 
	
—
	
 
	
132
	
 
	
14,536,000

	
 
	
 
	
E-15SB
	
 
	
—
	
 
	
26,620
	
 
	
1,859,136,845

	
 
	
 
	
E-I5SBNJ
	
 
	
—
	
 
	
635
	
 
	
49,848,000

	
 
	
 
	
 
	
 
	
35,114
	
 
	
36,304
	
 
	
6,128,719,321

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
FAMILY
	
 
	
ML-297 S
	
 
	
—
	
 
	
57
	
 
	
108,000

	
 
	
 
	
ML-299 S
	
 
	
—
	
 
	
31
	
 
	
55,000

	
 
	
 
	
NO FORM FAM
	
 
	
—
	
 
	
46
	
 
	
169,000

	
 
	
 
	
 
	
 
	
—
	
 
	
134
	
 
	
332,000

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
F12
	
 
	
F-12
	
 
	
502
	
 
	
—
	
 
	
34,335,000

	
 
	
 
	
F-12I
	
 
	
—
	
 
	
6
	
 
	
579,000

	
 
	
 
	
F-12S
	
 
	
—
	
 
	
340
	
 
	
12,309,640

	
 
	
 
	
 
	
 
	
502
	
 
	
346
	
 
	
47,223,640

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
IBR
	
 
	
ML-667
	
 
	
—
	
 
	
18,666
	
 
	
971,741,850

	
 
	
 
	
ML-677
	
 
	
—
	
 
	
11,211
	
 
	
368,838,500

	
 
	
 
	
 
	
 
	
—
	
 
	
29,877
	
 
	
1,340,580,350

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
IBR10
	
 
	
BI-101
	
 
	
—
	
 
	
16,254
	
 
	
1,785,390,200

	
 
	
 
	
BI-105
	
 
	
—
	
 
	
8,543
	
 
	
775,353,900

	
 
	
 
	
 
	
 
	
—
	
 
	
24,797
	
 
	
2,560,744,100

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
IBR10B
	
 
	
BI-10IB
	
 
	
—
	
 
	
29,926
	
 
	
3,368,247,500

	
 
	
 
	
BI-10IBNJ
	
 
	
—
	
 
	
1,248
	
 
	
146,281,900

	
 
	
 
	
BI-10SB
	
 
	
—
	
 
	
16,307
	
 
	
1,546,985,800

	
 
	
 
	
BI-10SBNJ
	
 
	
—
	
 
	
539
	
 
	
52,796,000

	
 
	
 
	
 
	
 
	
—
	
 
	
48,020
	
 
	
5,114,311,200

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
IBR5
	
 
	
BI-5I
	
 
	
—
	
 
	
23,977
	
 
	
1,505,154,400

	
 
	
 
	
BI-5S
	
 
	
—
	
 
	
13,745
	
 
	
704,838,950

	
 
	
 
	
 
	
 
	
—
	
 
	
37,722
	
 
	
2,209,993,350

 

 

I-8

 

Exhibit I - Identification of Reinsured Policies

 

	
PLAN
	
 
	
FORM
	
 
	
POLICIES
	
 
	
RIDERS
	
 
	
FACE AMOUNT

	
IBR5B
	
 
	
BI-5IB
	
 
	
—
	
 
	
30,369
	
 
	
1,964,729,850

	
 
	
 
	
BI-5IBNJ
	
 
	
—
	
 
	
961
	
 
	
62,684,500

	
 
	
 
	
BI-5SB
	
 
	
—
	
 
	
17,574
	
 
	
949,958,550

	
 
	
 
	
BI-5SBNJ
	
 
	
—
	
 
	
477
	
 
	
26,569,500

	
 
	
 
	
 
	
 
	
—
	
 
	
49,381
	
 
	
3,003,942,400

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
MOD-11
	
 
	
ML-301S 11
	
 
	
—
	
 
	
2
	
 
	
15,000

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
MOD-11 REN
	
 
	
ML-301 S 11
	
 
	
—
	
 
	
263
	
 
	
3,768,000

	
 
	
 
	
TD-11 S
	
 
	
1,041
	
 
	
—
	
 
	
40,523,000

	
 
	
 
	
TD-11 STX
	
 
	
185
	
 
	
—
	
 
	
7,351,000

	
 
	
 
	
 
	
 
	
1,226
	
 
	
263
	
 
	
51,642,000

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
MOD15
	
 
	
MT85(15)ML
	
 
	
9,276
	
 
	
—
	
 
	
384,548,697

	
 
	
 
	
MT85(l5)MLM
	
 
	
1,162
	
 
	
—
	
 
	
39,579,835

	
 
	
 
	
MT85-15MLM
	
 
	
511
	
 
	
—
	
 
	
17,560,000

	
 
	
 
	
MT85-15MLMO
	
 
	
5,445
	
 
	
—
	
 
	
186,297,509

	
 
	
 
	
MT85-15MLMT
	
 
	
8
	
 
	
—
	
 
	
272,000

	
 
	
 
	
MT85ML NJ
	
 
	
165
	
 
	
—
	
 
	
6,389,000

	
 
	
 
	
 
	
 
	
16,567
	
 
	
—
	
 
	
634,647,041

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
NL RIDER
	
 
	
ML-867 W
	
 
	
—
	
 
	
3,472
	
 
	
210,518,369

	
 
	
 
	
ML-867W WA
	
 
	
—
	
 
	
55
	
 
	
3,556,000

	
 
	
 
	
ML-867Y
	
 
	
—
	
 
	
3,636
	
 
	
206,083,500

	
 
	
 
	
ML-877
	
 
	
—
	
 
	
3,341
	
 
	
151,116,495

	
 
	
 
	
ML-877 W
	
 
	
—
	
 
	
2,836
	
 
	
138,021,600

	
 
	
 
	
 
	
 
	
—
	
 
	
13,340
	
 
	
709,295,964

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
O-MOD15
	
 
	
CR-85(l5)
	
 
	
—
	
 
	
735
	
 
	
26,460,500

	
 
	
 
	
SR-85(15)
	
 
	
—
	
 
	
1,637
	
 
	
26,542,184

	
 
	
 
	
 
	
 
	
—
	
 
	
2,372
	
 
	
53,002,684

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
OLDT15
	
 
	
T 15
	
 
	
3,368
	
 
	
—
	
 
	
44,490,569

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PAIDUP
	
 
	
CTI(80)
	
 
	
2
	
 
	
—
	
 
	
10,000

	
 
	
 
	
CTI(86)
	
 
	
23,710
	
 
	
—
	
 
	
219,109,000

	
 
	
 
	
STI(80)
	
 
	
35
	
 
	
—
	
 
	
68,000

	
 
	
 
	
 
	
 
	
23,747
	
 
	
—
	
 
	
219,187,000

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PDP EAGLE 20
	
 
	
PL-EAGLE 20
	
 
	
45
	
 
	
—
	
 
	
2,440,000

	
 
	
 
	
PL-206
	
 
	
—
	
 
	
1
	
 
	
26,000

	
 
	
 
	
PL-207
	
 
	
—
	
 
	
17
	
 
	
682,000

	
 
	
 
	
 
	
 
	
45
	
 
	
18
	
 
	
3,148,000

 

 

I-9

 

Exhibit I - Identification of Reinsured Policies

 

	
PLAN
	
 
	
FORM
	
 
	
POLICIES
	
 
	
RIDERS
	
 
	
FACE AMOUNT

	
PDP T20
	
 
	
ML-T20
	
 
	
72
	
 
	
—
	
 
	
5,753,000

	
 
	
 
	
ML-867C
	
 
	
—
	
 
	
1
	
 
	
1,000

	
 
	
 
	
ML-877C
	
 
	
—
	
 
	
20
	
 
	
1,300,000

	
 
	
 
	
 
	
 
	
72
	
 
	
21
	
 
	
7,054,000

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PLUSIBR10
	
 
	
CP-10IB
	
 
	
—
	
 
	
39,662
	
 
	
4,212,811,400

	
 
	
 
	
CP-10SB
	
 
	
—
	
 
	
21,815
	
 
	
1,980,554,000

	
 
	
 
	
 
	
 
	
—
	
 
	
61,477
	
 
	
6,193,365,400

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PLUSIBR5
	
 
	
CP-5IB
	
 
	
—
	
 
	
36,270
	
 
	
2,132,619,570

	
 
	
 
	
CP-5SB
	
 
	
—
	
 
	
20,737
	
 
	
1,044,154,500

	
 
	
 
	
 
	
 
	
—
	
 
	
57,007
	
 
	
3,176,774,070

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PLUS10
	
 
	
CP-I10
	
 
	
—
	
 
	
14,425
	
 
	
1,459,241,214

	
 
	
 
	
CP-I10YWA
	
 
	
—
	
 
	
79
	
 
	
8,727,000

	
 
	
 
	
CP-S10
	
 
	
—
	
 
	
21,146
	
 
	
1,993,368,164

	
 
	
 
	
CP-S10YWA
	
 
	
—
	
 
	
163
	
 
	
18,001,750

	
 
	
 
	
CP-10
	
 
	
23,716
	
 
	
—
	
 
	
3,138,021,509

	
 
	
 
	
CP-10MS
	
 
	
259
	
 
	
—
	
 
	
27,552,000

	
 
	
 
	
CP-10YWA
	
 
	
172
	
 
	
—
	
 
	
28,157,000

	
 
	
 
	
 
	
 
	
24,147
	
 
	
35,813
	
 
	
6,673,068,637

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PLUS15
	
 
	
CP-I15
	
 
	
—
	
 
	
8,458
	
 
	
903,605,421

	
 
	
 
	
CP-I15YWA
	
 
	
—
	
 
	
47
	
 
	
5,297,000

	
 
	
 
	
CP-S15
	
 
	
—
	
 
	
17,129
	
 
	
1,868,860,034

	
 
	
 
	
CP-S15YWA
	
 
	
—
	
 
	
106
	
 
	
13,925,000

	
 
	
 
	
CP-15
	
 
	
21,388
	
 
	
—
	
 
	
3,049,496,804

	
 
	
 
	
CP-15MS
	
 
	
331
	
 
	
—
	
 
	
38,255,999

	
 
	
 
	
CP-15YWA
	
 
	
129
	
 
	
—
	
 
	
23,253,000

	
 
	
 
	
 
	
 
	
21,848
	
 
	
25,740
	
 
	
5,902,693,258

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PLUS20
	
 
	
CP-I20
	
 
	
—
	
 
	
8,112
	
 
	
1,094,283,197

	
 
	
 
	
CP-I20YWA
	
 
	
—
	
 
	
36
	
 
	
4,971,000

	
 
	
 
	
CP-S20
	
 
	
—
	
 
	
35,745
	
 
	
5,254,206,955

	
 
	
 
	
CP-S20YWA
	
 
	
—
	
 
	
175
	
 
	
27,437,000

	
 
	
 
	
CP-20
	
 
	
55,453
	
 
	
—
	
 
	
10,178,381,894

	
 
	
 
	
CP-20MS
	
 
	
636
	
 
	
—
	
 
	
96,182,000

	
 
	
 
	
CP-20YWA
	
 
	
269
	
 
	
—
	
 
	
55,420,000

	
 
	
 
	
 
	
 
	
56,358
	
 
	
44,068
	
 
	
16,710,882,046

 

 

I-10

 

Exhibit I - Identification of Reinsured Policies

 

	
PLAN
	
 
	
FORM
	
 
	
POLICIES
	
 
	
RIDERS
	
 
	
FACE AMOUNT

	
PLUS25
	
 
	
CP-I25
	
 
	
—
	
 
	
4,348
	
 
	
634,730,599

	
 
	
 
	
CP-S25
	
 
	
—
	
 
	
35,652
	
 
	
5,945,760,896

	
 
	
 
	
CP-25
	
 
	
66,597
	
 
	
—
	
 
	
12,408,101,481

	
 
	
 
	
CP-25MS
	
 
	
947
	
 
	
—
	
 
	
133,876,000

	
 
	
 
	
 
	
 
	
67,544
	
 
	
40,000
	
 
	
19,122,468,976

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PLUS30
	
 
	
CP-I30YWA
	
 
	
—
	
 
	
17
	
 
	
2,952,500

	
 
	
 
	
CP-S30YWA
	
 
	
—
	
 
	
232
	
 
	
40,806,000

	
 
	
 
	
CP-30YWA
	
 
	
360
	
 
	
—
	
 
	
79,835,000

	
 
	
 
	
 
	
 
	
360
	
 
	
249
	
 
	
123,593,500

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
SPECIAL CASES
	
 
	
A-10
	
 
	
1
	
 
	
—
	
 
	
125,000

	
 
	
 
	
A-10B
	
 
	
4
	
 
	
—
	
 
	
205,000

	
 
	
 
	
A-10SB
	
 
	
—
	
 
	
3
	
 
	
55,000

	
 
	
 
	
A-10SP
	
 
	
—
	
 
	
1
	
 
	
10,000

	
 
	
 
	
B-20B
	
 
	
1
	
 
	
—
	
 
	
150,000

	
 
	
 
	
B-20IB
	
 
	
—
	
 
	
1
	
 
	
200,000

	
 
	
 
	
C-25
	
 
	
1
	
 
	
—
	
 
	
75,000

	
 
	
 
	
CP-10
	
 
	
3
	
 
	
—
	
 
	
225,000

	
 
	
 
	
CP-20
	
 
	
2
	
 
	
—
	
 
	
350,000

	
 
	
 
	
C4-S15
	
 
	
—
	
 
	
1
	
 
	
225,000

	
 
	
 
	
E-15B
	
 
	
3
	
 
	
—
	
 
	
807,000

	
 
	
 
	
E-15IBNJ
	
 
	
—
	
 
	
1
	
 
	
50,000

	
 
	
 
	
E-15SB
	
 
	
—
	
 
	
1
	
 
	
21,000

	
 
	
 
	
E-15SBNJ
	
 
	
—
	
 
	
1
	
 
	
50,000

	
 
	
 
	
ML-T20
	
 
	
3
	
 
	
—
	
 
	
80,000

	
 
	
 
	
ML-T90
	
 
	
2
	
 
	
—
	
 
	
375,000

	
 
	
 
	
ML-T95
	
 
	
1
	
 
	
—
	
 
	
2,000,000

	
 
	
 
	
ML-297 S
	
 
	
—
	
 
	
1
	
 
	
25,980

	
 
	
 
	
ML-867C
	
 
	
—
	
 
	
2
	
 
	
210,000

	
 
	
 
	
ML-877C
	
 
	
—
	
 
	
2
	
 
	
75,000

	
 
	
 
	
ML-877S
	
 
	
—
	
 
	
1
	
 
	
61,000

	
 
	
 
	
ML-967
	
 
	
—
	
 
	
2
	
 
	
245,000

	
 
	
 
	
ML-977
	
 
	
—
	
 
	
2
	
 
	
100,000

	
 
	
 
	
MT-85(M)LM
	
 
	
1
	
 
	
—
	
 
	
25,000

	
 
	
 
	
MX-T95
	
 
	
1
	
 
	
—
	
 
	
10,000

	
 
	
 
	
NO FORM SPC
	
 
	
56
	
 
	
12
	
 
	
3,680,263

	
 
	
 
	
NOFORMOGC
	
 
	
402
	
 
	
—
	
 
	
10,013,750

	
 
	
 
	
PL-EAGLE 10
	
 
	
1
	
 
	
—
	
 
	
100,000

	
 
	
 
	
PL-EAGLE 20
	
 
	
1
	
 
	
—
	
 
	
150,000

	
 
	
 
	
PL-207
	
 
	
—
	
 
	
1
	
 
	
150,000

	
 
	
 
	
WL70
	
 
	
3
	
 
	
—
	
 
	
54,187

	
 
	
 
	
 
	
 
	
486
	
 
	
32
	
 
	
19,903,180

 

 

I-11

 

Exhibit I - Identification of Reinsured Policies

 

	
PLAN
	
 
	
FORM
	
 
	
POLICIES
	
 
	
RIDERS
	
 
	
FACE AMOUNT

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
TI0 JUMBO RIDER
	
 
	
ML-967
	
 
	
—
	
 
	
8,481
	
 
	
1,123,433,220

	
 
	
 
	
ML-977
	
 
	
—
	
 
	
5,690
	
 
	
519,843,967

	
 
	
 
	
ML-987
	
 
	
—
	
 
	
138
	
 
	
12,983,000

	
 
	
 
	
 
	
 
	
—
	
 
	
14,309
	
 
	
1,656,260,187

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
T15 BD
	
 
	
ML-T15
	
 
	
524
	
 
	
—
	
 
	
62,052,000

	
 
	
 
	
ML-867B
	
 
	
—
	
 
	
4
	
 
	
465,000

	
 
	
 
	
ML-877B
	
 
	
—
	
 
	
295
	
 
	
17,890,000

	
 
	
 
	
ML-887B
	
 
	
—
	
 
	
34
	
 
	
1,505,000

	
 
	
 
	
 
	
 
	
524
	
 
	
333
	
 
	
81,912,000

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
T20 BD
	
 
	
ML-T20
	
 
	
160,540
	
 
	
—
	
 
	
20,093,614,525

	
 
	
 
	
ML-867C
	
 
	
—
	
 
	
2,505
	
 
	
164,703,629

	
 
	
 
	
ML-877C
	
 
	
—
	
 
	
92,527
	
 
	
7,531,373,930

	
 
	
 
	
ML-887C
	
 
	
—
	
 
	
2,993
	
 
	
109,458,000

	
 
	
 
	
 
	
 
	
160,540
	
 
	
98,025
	
 
	
27,899,150,083

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
T2000
	
 
	
PL-I25
	
 
	
—
	
 
	
10,346
	
 
	
1,276,822,184

	
 
	
 
	
PL-I25X
	
 
	
—
	
 
	
1,544
	
 
	
269,516,000

	
 
	
 
	
PL-M25
	
 
	
33,452
	
 
	
—
	
 
	
3,522,137,246

	
 
	
 
	
PL-M25X
	
 
	
6,188
	
 
	
—
	
 
	
801,747,900

	
 
	
 
	
PL-S25
	
 
	
—
	
 
	
19,504
	
 
	
2,162,337,444

	
 
	
 
	
PL-S25X
	
 
	
—
	
 
	
3,313
	
 
	
441,588,400

	
 
	
 
	
 
	
 
	
39,640
	
 
	
34,707
	
 
	
8,474,149,174

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
ULTIMA TERM
	
 
	
ML-900
	
 
	
—
	
 
	
64
	
 
	
3,876,000

	
 
	
 
	
ML-910
	
 
	
—
	
 
	
213
	
 
	
9,529,000

	
 
	
 
	
MT90(15)MLX
	
 
	
287
	
 
	
—
	
 
	
34,326,000

	
 
	
 
	
 
	
 
	
287
	
 
	
277
	
 
	
47,731,000

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
WHLE LIFE
	
 
	
MWL-110
	
 
	
7
	
 
	
—
	
 
	
294,000

	
 
	
 
	
 
	
 
	
1,993,217
	
 
	
3,104,562
	
 
	
535,938,951,588

 

 

 

I-12

 

Exhibit II

Third Party Reinsurance

 

 

II-1

 

EXHIBIT II - THIRD PARTY REINSURANCE

 

	
REINSURER / AGREEMENT TYPE *
	
 
	
POLICIES
	
 
	
RIDERS
	
 
	
REINSURANCE AMOUNT

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
ACE LIFE INSURANCE CO
	
QS
	
 
	
354,442
	
 
	
480,539
	
 
	
10,182,917,910

	
ALLIANZ LIFE REINSURANCE
	
QS
	
 
	
289,576
	
 
	
443,856
	
 
	
5,119,945,446

	
GENERALI USA
	
CO
	
 
	
7,613
	
 
	
445
	
 
	
13,914,158

	
GENERALI USA
	
QS
	
 
	
977,897
	
 
	
1,393,214
	
 
	
50,651,871,392

	
MUNICH RE
	
CO
	
 
	
180,432
	
 
	
94,956
	
 
	
1,918,433,790

	
MUNICH RE
	
QS
	
 
	
624,659
	
 
	
1,001,043
	
 
	
34,535,423,977

	
CANADA LIFE ASSURANCE
	
QS
	
 
	
279,266
	
 
	
432,890
	
 
	
8,669,564,108

	
CHARTER SECURITY LIFE
	
CO
	
 
	
6,487
	
 
	
469
	
 
	
11,910,689

	
EMPLOYERS RE CORP
	
CO
	
 
	
335,867
	
 
	
204,840
	
 
	
1,261,287,786

	
SCOR GLOBAL LIFE
	
QS
	
 
	
977,772
	
 
	
1,393,152
	
 
	
50,092,374,065

	
REASSURANCE OF HANOVER
	
CO
	
 
	
250,738
	
 
	
151,238
	
 
	
269,488,301

	
REASSURANCE OF HANOVER
	
QS
	
 
	
291,276
	
 
	
509,031
	
 
	
13,273,885,387

	
REASSURANCE OF HANOVER
	
XL
	
 
	
80
	
 
	
32
	
 
	
11,775,455

	
LINCOLN NATIONAL LIFE
	
CO
	
 
	
66,796
	
 
	
10,238
	
 
	
575,612,779

	
LINCOLN NATIONAL RE
	
CO
	
 
	
399,982
	
 
	
257,151
	
 
	
6,009,492,365

	
LIFE REASSURANCE CORP
	
CO
	
 
	
463,813
	
 
	
267,277
	
 
	
6,441,512,922

	
MERCANTILE & GENERAL
	
QS
	
 
	
369,925
	
 
	
534,672
	
 
	
17,994,316,223

	
MUNICH AMERICAN RE
	
XL
	
 
	
49
	
 
	
15
	
 
	
2,588,939

	
SWISS RE
	
CO
	
 
	
270,574
	
 
	
153,439
	
 
	
1,069,504,653

	
SWISS RE
	
XL
	
 
	
79
	
 
	
31
	
 
	
6,687,092

	
OXFORD LIFE INS CO
	
CO
	
 
	
250,637
	
 
	
151,178
	
 
	
790,076,012

	
AMERICAN PHOENIX LIFE
	
QS
	
 
	
220,511
	
 
	
338,204
	
 
	
6,246,784,768

	
REINS GROUP OF AMERICA
	
QS
	
 
	
945,549
	
 
	
1,400,267
	
 
	
48,106,916,734

	
SCOR LIFE RE US
	
QS
	
 
	
640,927
	
 
	
920,825
	
 
	
24,995,041,915

	
SCOTTISH RE
	
QS
	
 
	
244,546
	
 
	
402,537
	
 
	
11,290,886,467

	
SWISS RE LIFE & HEALTH
	
QS
	
 
	
354,464
	
 
	
480,552
	
 
	
17,042,273,815

	
TEXAS RE LIFE INS CO
	
CO
	
 
	
166,947
	
 
	
105,960
	
 
	
84,329,176

	
TOA REINSURANCE COMPANY
	
QS
	
 
	
484,791
	
 
	
671,543
	
 
	
24,681,975,884

	
TRANSAMERICA OCCIDENTAL
	
CO
	
 
	
76,008
	
 
	
47,122
	
 
	
846,241,682

	
TRANSAMERICA OCCIDENTAL
	
QS
	
 
	
876,919
	
 
	
1,187,614
	
 
	
37,661,911,091

	
TRANSAMERICA OCCIDENTAL
	
XL
	
 
	
1
	
 
	
1
	
 
	
35,000

	
COMPANY TOTALS
	
 
	
 
	
 
	
 
	
 
	
 
	
379,858,979,981

 

* CO = COINSURANCE 

   XL = EXCESS LOSS YRT

   QS = QUOTA SHARE YRT 

 

 

 

II-2

 

Exhibit III

Form of Monthly Report

Prime Re

Monthly Settlement Report

[See attached]

 

 

 

III-1

 

Swiss Re Reinsurance

Manual Expense Allowance

[•]

 

	
Section 4.2 Allowances
	
 
	
DL01

	
 
	
 
	
[•]

	
MSCWPE2--1 Policy Exhibit
	
 
	
 

	
Beginning Direct inforce [first day of applicable month]
	
 
	
[•]

	
Ending Direct inforce [last day of applicable month]
	
 
	
[•]

	
Avg Direct Inforce
	
 
	
[•]

	
*Expense Allowance @ 100%
	
 
	
[•]

	
Expense Allowance @ Deal %
	
 
	
[•]

	
Annual Expense Allowance
	
 
	
[•]

	
Monthly Expense Allowance (1/12)
	
 
	
[•]

	
 
	
 
	
 

	
Section 4.3 Other Obligations
	
 
	
DL01

	
 
	
 
	
[•]

	
(i) Other obligations
	
 
	
 

	
MSCWRA1-1 Settlement Rpt (CO9999 for DL02)
	
 
	
 

	
Direct Premiums [applicable month]
	
 
	
[•]

	
** Premium Tax Rate
	
 
	
[•]

	
Premium taxes Incurred
	
 
	
[•]

	
 
	
 
	
DL01

	
 
	
 
	
[•]

	
(ii) Other obligations
	
 
	
 

	
# EOT Policy Conversions
	
 
	
[•]

	
** Allowance
	
 
	
[•]

	
Total EOT Conversion Allowance
	
 
	
[•]

	
EOT Conversion Allowance per Deal%
	
 
	
[•]

	
 
	
 
	
DL01

	
 
	
 
	
[•]

	
(iv) Other obligations
	
 
	
 

	
U/W expenses on Reinstatements
	
 
	
[•]

	
Reinstatement U/W Expenses per Deal %
	
 
	
[•]

	
 
	
 
	
DL01

	
 
	
 
	
[•]

	
(iii) Other obligations
	
 
	
 

	
Conversion Bonus
	
 
	
[•]

	
Continuation Bonus
	
 
	
[•]

	
Total EOT Bonus
	
 
	
[•]

	
Bonus Funding Valn
	
 
	
[•]

	
Legacy Total
	
 
	
[•]

	
Commission Adj Per Deal %
	
 
	
[•]

 

III-2

 

[•]

 

	
*
	
Expense Allowance Rate for DLO1/DLO4/DL03 is adjusted annually in January.

	
*
	
Expense Allowance Rate for DLO2 is adjusted annually in March. See 'Expense

	
**
	
Per the coinsurance agreements, these rates do not change.

 

	
Prepared By:
	
 
	
 
	
Reviewed By:
	
 

	
 
	
 
	
 
	
 
	
 

	
Date:
	
 
	
 
	
Date:
	
 

 

 

Swiss Re Reinsurance Top Up Notice

 

	
 
	
 
	
As of

	
 
	
 
	
[•]

	
 
	
 
	
Pecan Re 80%

	
 
	
 
	
DL01

	
Reserve Report
	
 
	
 

	
Direct Reserves
	
 
	
[•]

	
Ceded Reserves
	
 
	
[•]

	
 
	
 
	
—

	
Direct Pending
	
 
	
[•]

	
Ceded Pending
	
 
	
[•]

	
Recoverables
	
 
	
[•]

	
 
	
 
	
—

	
Economic Reserve
	
 
	
 

	
Excess Reserve
	
 
	
—

	
Reserve Report
	
 
	
—

	
 
	
 
	
—

	
Required Reserve Balance
	
 
	
—

	
Security Balance as of [•]
	
 
	
 

	
Fair Value of Trust
	
 
	
[•]

	
Fair Value of Economic Trust
	
 
	
—

	
Fair Value of Excess Trust
	
 
	
—

	
 
	
 
	
—

	
Over/(Under) funded: Security Balance minus Required Reserve Balance
	
 
	
 

	
-10% Economic Reserve
	
 
	
—

	
-10% Excess Reserve
	
 
	
—

	
Over/(Under) funded
	
 
	
—

	
102% of Required Reserves Balance
	
 
	
 

	
Economic Reserve
	
 
	
—

	
Excess Reserve
	
 
	
—

	
 
	
 
	
—

	
Excess Security Balance in Trust:
	
 
	
 

	
Economic Trust > Economic Reserve
	
 
	
—

	
Excess Trust > Excess Reserve
	
 
	
—

	
Security Balance minus 102% of Required Reserve Balance (105% for FRAC)
	
 
	
—

	
 
	
 
	
 

	
 
	
 
	
—

 

 

 

III-3

 

 

	
.
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
if <= current month, 1 
1
	
 
	
if <= current month, 1 
1
	
if <= current month, 1 
1
	
 
	
if <= current month, 1
	
 
	
if <= current month, 1
	
 
	
if<= current month, 1 1
	
 
	
if<= current month, 1 1
	
 
	
if<= current month, 1 1
	
 
	
if <= current month, 1
1
	
 
	
if <= current month, 1
	
 

	
PLIC - Pecan Re

Settlement Statement

[•], YTD
	
 
	
(4 wks)

January
	
 
	
(5 wks)

February
	
 
	
(4 wks)

March
	
 
	
(4 wks)

April
	
 
	
(5 wks)

May
	
 
	
(4 wks)

June
	
 
	
(4 wks)

July
	
 
	
(5 wks)

August
	
 
	
(4 wks)

September
	
 
	
(4 wks)

October
	
 
	
(5 wks)

November
	
 
	
YTD

	
 
	
Due
	
 
	
 
	
 
	
 
	
 
	
 
	
DL01 -80%
	
 
	
DL01 -80%
	
 
	
DL01 -80%
	
 
	
DL01 -80%
	
 
	
DL01 -80%
	
 
	
DL01 -80%
	
 
	
DL01 -80%
	
 
	
DL01 -80%
	
 
	
DL01 -80%
	
 
	
DL01 -80%
	
 
	
DL01 -80%
	
 
	
DL01 -80%

	
Business
	
to/form
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Unit
	
Account
	
9.2 BU
	
Book Code
	
Deal Id
	
Prod
	
 
	
Description
	
AmountDue
	
 
	
AmountDue
	
 
	
AmountDue
	
 
	
AmountDue
	
 
	
AmountDue
	
 
	
AmountDue
	
 
	
AmountDue
	
 
	
AmountDue
	
 
	
AmountDue
	
 
	
AmountDue
	
 
	
AmountDue
	
 
	
AmountDue

	
Due to/from PR20 Cash ledger
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
Direct Premiums
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
—

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
Direct Claims
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
—

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
ETPR Claims
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
—

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
ETPR Premiums Monthly True Up & Manual Premiums
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
Prior Month Accrual Deal
	
[•]
	
  
	
[•]
	
  
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
Current Month Cash Deal
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Manual Premium Pmts(FAC, Term)
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
 
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
 
	
 
	
 
	
 
	
—-
	
 
	
 
	
 
	
 

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
Expense Allowance
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
—

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
Premium Tax Allowance
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
—

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
Premium Tax Recovered
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
—

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
Conversion Allowance
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
—

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
Reinstatement U/W Expense
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
—

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Commissions
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
—

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
Bonus Funding, EOT Bonus
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
—

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
ICA Comm Exp
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
—

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
Lf 1 yr Com
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
—

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
Lf Ren Com
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
—

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Commission Allowance
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
—

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
Lf 1YrComm-Re-Ced
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Scottish Re's & Canada Life's reprocessed IBR's
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
(PSR/PCR)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—

	
Total Due to/from PR20 Cash ledger
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
—

	
Due tofrom PR2G Accrual ledger
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
ETPR Premiums (excluding Frozens)
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Frozen Release ETPR Premiums
	
-
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
-
	
 
	
[•]
	
 
	
[•]
	
 
	
-
	
 
	
[•]
	
 
	
[•]
	
 
	
 

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
ETPR Premiums - Monthly accrual
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
—

	
Net Amount Due to Pecan Re
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
—

 

III-4

 

 

	
Coinsurance Agreement
	
 
	
 
	
Primerica Report ID / Name
	
 
	
File 1

	
Article VIII Section 8.1 & 8.2
	
 
	
Report ID
	
 
	
Report Name
	
 
	
[●]

	
Monthly Settlement Report
	
 
	
SCWRA1 --1
	
 
	
Monthly Settlement Report
	
 
	
✓

	
Policy Exhibit
	
 
	
SCWPE2 --1
	
 
	
Exhibit of Life Insurance
	
 
	
✓

	
 
	
 
	
SCWPE3--1
	
 
	
Policy Exhibit Errors
	
 
	
✓

	
Non-Bordereau Claims Report
	
 
	
SCWRA4 --1
	
 
	
Bulk Claim
	
 
	
✓

	
Bordereau Report
	
 
	
SCWRA4 --2
	
 
	
NonBulk Claim
	
 
	
✓

	
Reserve Report
	
 
	
SCWRA3 -- 1
	
 
	
Monthly Reserve Report
	
 
	
✓

	
Claim Reserve Report
	
 
	
SCWRA2 -- 1
	
 
	
Claim Reserve Report
	
 
	
✓

	
 
	
 
	
SCWRA4 --3
	
 
	
Detail Pending Claims and Recoverables
	
 
	
✓

	
Monthly Account Balance Reports
	
 
	
PSP419-MP
	
 
	
Pecan Re General Ledger Summary
	
 
	
✓

	
Top-Up Notice
	
 
	
PDF
	
 
	
Top Up Notice
	
 
	
✓

	
 
	
 
	
SCWR07 --1
	
 
	
Monthly Settlement Report - Peoplesoft Ledger Balance
	
 
	
✓

	
 
	
 
	
SCWR07 -- 2
	
 
	
Claim Reserve Report - Peoplesoft Ledger Balance
	
 
	
✓

	
 
	
 
	
SCWR07 -- 3
	
 
	
Monthly Reserve Report - Peoplesoft Ledger Balance
	
 
	
✓

	
 
	
 
	
PDF
	
 
	
Policy and Claim Reserve Recon to GL
	
 
	
✓

	
 
	
 
	
Excel
	
 
	
N'Vision Report: Pecan Re
	
 
	
✓

	
 
	
 
	
PDF
	
 
	
Settlement Statements - Pecan Re
	
 
	
✓

	
 
	
 
	
PDF
	
 
	
Monthly Manual Deal Entries
	
 
	
✓

	
 
	
 
	
Excel
	
 
	
GL Interface file
	
 
	
✓

	
 
	
 
	
PDF
	
 
	
Reinsurance Recoverables Aging Report
	
 
	
✓

	
 
	
 
	
PDF
	
 
	
Pending Litigation Claims Report
	
 
	
✓

 

	
	
System Generated Report - not available in Excel/Word format

	
Attached Excel Version of this report

	
Report provided in an Excel version already. Re-attached this report

III-5

 

 

	
 
	
Report ID
	
Report Name

	
Coinsurance AgreementArticle VIII Section 8.1 & 8.2

	
Monthly Settlement Report
	
SCWRA1 --1
	
Monthly Settlement Report

	
Policy Exhibit
	
SCWPE2 -- 1
	
Exhibit of Life Insurance

	
 
	
SCWPE3--1
	
Policy Exhibit Errors

	
Non-Bordereau Claims Report
	
SCWRA4 --1
	
Bulk Claim

	
Bordereau Report
	
SCWRA4 -- 2
	
NonBulk Claim

	
Reserve Report
	
SCWRA3 --1
	
Monthly Reserve Report

	
Claim Reserve Report
	
SCWRA2 -- 1
	
Claim Reserve Report

	
 
	
SCWRA4 -- 3
	
Detail Pending Claims and Recoverables

	
Monthly Account Balance Reports
	
PSP419
	
General Ledger Summary-USD

	
 
	
PSP419
	
General Ledger Summary-CAD

	
Top-Up Notice
	
PDF
	
Top Up Notice (required quarterly)

	
Additional Reports provided

	
 
	
PDF
	
Settlement Statements - Pecan Re

& Experience Refund - Pecan Re

	
 
	
SCWR07 --1
	
Monthly Settlement Report - Peoplesoft Ledger Balance

	
 
	
SCWR07 -- 2
	
Claim Reserve Report - Peoplesoft Ledger Balance

	
 
	
SCWR07 --3
	
Monthly Reserve Report - Peoplesoft Ledger Balance

	
 
	
PDF
	
Monthly Manual Deal Entries & Support (Expense Allowance, End of Term & Reinst U/W Expense detail)

	
 
	
Excel
	
N'Vision Report: Pecan Re

	
 
	
PDF
	
Policy and Claim Reserve Recon to GL

	
 
	
Excel
	
GL Interface file

 

Total 26 files

 

	
Manic Lefebvre 
	
manic_lefebvre@swissre.com

	
[●] 
	
[●]

	
[●] 
	
[●]

	
[●] 
	
[●]

 

 

 

III-6

 

 

	
PRIMG&SB 
	
[●]

	
SWISS RE REINSURANCE PECAN RE GAAP & STAT
	
 

	
Run: [●]
	
 

 

	
 
	
 
	
Pecan Re GAAP
	
 
	
 
	
Pecan Re STAT

	
 
	
 
	
DL01: 80%
	
 
	
 
	
DL01: 80%
	
 

	
 
	
8.4 Business Unit
	
 
	
PR20
	
 
	
PR2G
	
 
	
PR2GG
	
 
	
Pecan Re_GP
	
 
	
 
	
PR20
	
 
	
PR2G
	
 
	
PR2S
	
 
	
Pecan Re_St

	
 
	
9.2 Business Unit
	
 
	
Pecan
	
 
	
Pecan
	
 
	
Pecan
	
 
	
 
	
 
	
 
	
Pecan
	
 
	
Pecan
	
 
	
Pecan
	
 
	
 

	
 
	
9.2 Deal ID
	
 
	
Pecan80
	
 
	
Pecan80
	
 
	
Pecan80
	
 
	
 
	
 
	
 
	
Pecan80
	
 
	
Pecan80
	
 
	
Pecan80
	
 
	
 

	
 
	
9.2 Book Code
	
 
	
Base
	
 
	
Comb
	
 
	
GAAP
	
 
	
Total
	
 
	
 
	
Base
	
 
	
Comb
	
 
	
STAT
	
 
	
Total

	
 
	
9.2 Product
	
 
	
Uncons
	
 
	
Uncons
	
 
	
Uncons
	
 
	
GAAP
	
 
	
 
	
Uncons
	
 
	
Uncons
	
 
	
Uncons
	
 
	
STAT

	
Assets
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
Intercompany Legacy
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Premium Due and Unpaid
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Due From Rein-UW and Other
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Reinsurance Recoverable
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Ceded Pending
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Ceded Reserves
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Direct Pending
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Direct Reserves
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Due to Affiliates
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Deferred ACQ Cost (DAC)
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
T otal Assets
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
Liabilities
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
Future Policy Benefits - Life
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Direct Pending Claims
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Accrued Taxes Licenses Fees
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Cost of Collection
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Advance Premium
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Due to Reinsurers
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Commissions Payable
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
T otal Liabilities
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Net Income
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Paid in Capital
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Retained Earnings
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
Total Equity
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
Total Liabilities & Equity
	
 
	
 
	
 
	
 [•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•] 
	
 
	
[•]
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 [•]
	
 
	
 [•]
	
 
	
 
	
 
	
[•]
	
 
	
 
	
 [•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
Revenue
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
Premium
	
 
	
 
	
 
	
 [•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•] 
	
 
	
[•] 
	
 
	
[•] 
	
 
	
[•]

	
Total Revenue
	
 
	
 
	
 [•]
	
 
	
 [•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
 [•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
Benefit
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
Claims - Life
	
 
	
 [•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Change In Reserve - Life
	
 
	
 [•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
Total Benefits
	
 
	
 
	
 [•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
Commission & Expenses
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
Commissions - Net
	
 
	
 [•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Amortization of DAC
	
 
	
 [•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Allowances
	
 
	
 [•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
 
	
Legal Settlements
	
 
	
 [•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
Total Commisions & Expenses
	
 
	
 [•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
Total Benefit, Commissions & Expenses
	
 
	
 [•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

	
Net Income
	
 
	
 [•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]

 

 

Page 1

 

Exhibit IV

Form of Monthly Account Balance Report

[See attached]

 

IV-1

 

 

		
	
Prepared By:
	
 

	
Approved By:
	
 

[•]

 

	
Policy Reserves:
	
 
	
Direct Reserves
	
 
	
 
	
 
	
ETPR Reserves
	
 
	
 
	
 
	
Net
	
 
	
Total Reserves

	
DL01: PLIC 80% SCWRA3-1 balance
	
 
	
[•]
	
 
	
 
	
 
	
[•]
	
 
	
 
	
 
	
—
	
 
	
DL01 Σ (A)
	
—

	
Manual Adjustments:
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
DIS Monthly Inc./Stat Errors
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Adj. to [year] waiver clms-Lx
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Frozen Stat Reserves - Coin @ 80%
	
 
	
 
	
 
	
 
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Frozen Stat Reserves Qsyrt @ 80%
	
 
	
 
	
 
	
 
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
CTR & Spouse Conversions incorrectly 

   ceded to Citi
	
 
	
[•]
	
 
	
 
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Adjusted Rsrv Balance:
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
(A)
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
General Ledger: PSP030
	
 
	
B.U.
	
 
	
Deal ID
	
 
	
Book Code
	
 
	
Product
	
 
	
 
	
 
	
 
	
 

	
8.4 BU: PR2S
	
 
	
PrmRe
	
 
	
PrmRe80
	
 
	
stat
	
 
	
uncons
	
 
	
 
	
 
	
 
	
 

	
200109-FPB Reserves SW Asmd
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
200119-Waiver Reserve SW Asmd
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
141213-ETPR COI Reserves Frzn SW Asmd
	
 
	
 
	
 
	
 
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
141218-ETPR YRT Reserves Frzn SW Asmd
	
 
	
 
	
 
	
 
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
141207-ETPR COI Reserves SW Asmd
	
 
	
 
	
 
	
 
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
141203-ETPR YRT Reserves SW Asmd
	
 
	
 
	
 
	
 
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

 

IV-2

 

 

	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Claim Reserves
	
 
	
Direct Pending
	
 
	
 
	
 
	
ETPR Pending
	
 
	
 
	
 
	
ETPR Recoverables
	
 
	
Net
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
DL01: PLIC 80% SCWRA2-1 balance
	
 
	
[•]
	
 
	
 
	
 
	
[•]
	
 
	
 
	
 
	
[•]
	
 
	
 
	
 

	
Manual Adjustments:
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
IBNR - Direct
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
SSAP 55 (stat only adj)
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
IBNR - Coin
	
 
	
 
	
 
	
 
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
IBNR - Qsyrt
	
 
	
 
	
 
	
 
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Clm Accrl
	
 
	
—
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
CTR & Spouse Conversions incorrectly ceded to Citi
	
 
	
[•]
	
 
	
 
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
(A)

	
Adjusted Claim Rsrv:
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
—
	
 

	
General Ledger: PSP030
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
B.U.
	
 
	
Deal ID
	
 
	
Book Code
	
 
	
Product
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
PrmRe
	
 
	
PrmRe80
	
 
	
comb

stat
	
 
	
uncons
	
 
	
 
	
 
	
 
	
 

	
8.4 BU: PR2G 201202-Direct Pending Claims SW Asmd
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PR2G   201213-Direct IBNR SW Asmd
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PR2S   201213-Direct IBNR SW Asmd
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PR2G   140803-ETPR Pending Clms YRT SW Asmd
	
 
	
 
	
 
	
 
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PR2G   140813-ETPR YRT IBNR SW Asmd
	
 
	
 
	
 
	
 
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PR2G   140807-ETPR Pending Clms COI SW Asmd
	
 
	
 
	
 
	
 
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PR2G   140818-ETPR COI IBNR SW Asmd
	
 
	
 
	
 
	
 
	
 
	
[•]
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PR2G   140823-ETPR Reins Recov Adj SW Asmd
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
-
	
 
	
 
	
 

	
PR2G   140603-ETPR Reins Recov YRT SW Asmd
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
[•]
	
 
	
 
	
 

	
PR2G   140607-ETPR Reins Recov COI SW Asmd
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
[•]
	
 
	
 
	
 

	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
—
	
 

	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
—
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

	
PFS_REINS_C
	
107 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Year
	
Period
	
Unit
	
Deal
	
Product
	
Book Code
	
Account
	
Sum Amount
	
Base Curr

	
[•]
	
11
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
USD

	
[•]
	
11
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
USD

 

 

 

 

	
PFS_REINS_C
	
117 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Year
	
Period
	
Unit
	
Deal
	
Product
	
Book Code
	
Account
	
Sum Amount
	
Base Curr

	
[•]
	
11
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
USD

	
[•]
	
11
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
USD

 

 

 

IV-3

 

Exhibit V-A

Milliman Information

	
1)
	
Inventories of term life insurance policies in force as of June 30, 2009, including computer files and other listings of these records.

	
2)
	
Current set of assumptions actually used for pricing the Custom Advantage Policy as provided by the Ceding Company.

	
3)
	
Mortality and lapse studies prepared by the Ceding Company for the business in force.

	
4)
	
Product characteristics and data including premium rates, policy fees, banding, commission rates, product benefit features, etc.

	
5)
	
Ceding Company methodology and basis regarding statutory reserves and tax reserves.

	
6)
	
Information on the terms of existing reinsurance agreements with third parties.

	
7)
	
Information with respect to the current unit expenses of the Ceding Company.

 

 

V-A-1

 

Exhibit V-B

Milliman Information

	
1)
	
Actual recent financial data for the Covered Liabilities.

 

 

V-B-1

 

Exhibit VI

Milliman Report

[See attached]

 

 

 

VI-1

 

ACTUARIAL ANALYSIS OF

PRIMERICA LIFE INSURANCE COMPANY

AS OF JUNE 30, 2009

 

	
PREPARED FOR:

	
 

	
Citigroup, Inc.

	
 

	
PREPARED BY:

	
 

	
Bruce W. Winterhof, F.S.A., M.A.A.A. 

	
Yiping Yang, F.S.A., M.A.A.A.

	
Laird D. Zacheis, F.S.A., M.A.A.A.

	
 

	
September 14, 2009 

	
Revised October 23, 2009

	
 

	
 

 

Milliman

 

 

 

 

 

	
71 S. Wacker Drive, 31st Floor

	
Chicago, IL 60606

	
Tel +1 312 726.0677 

	
Fax +1 312 499.5700

	
www.milliman.com

 

	
September 14, 2009 

	
Revised October 23, 2009

 

	
Mr. James von Moltke
	
Mr. D. Richard Williams

	
M&A Group Manager
	
Co-Chief Executive Officer &

	
Citigroup Inc.
	
Chief Operating Officer

	
909 Third Avenue
	
Primerica Financial Services

	
New York, New York 10022
	
3120 Breckinridge Boulevard

	
 
	
Duluth, Georgia 30099

 

Dear Sirs:

This report provides actuarial values and projections as of June 30, 2009 for the individual life and annuity business of Primerica Life Insurance Company. This report reflects updates to our September 14, 2009 report for certain reinsurance treaty terms and other refinements to the projections.

Section I outlines the scope and qualifications associated with the analysis. Actuarial values and yearly statutory profits are summarized in Section II. Section III and the Appendices summarize the methodology, models and actuarial assumptions underlying the developed values.

This report is a statement of actuarial opinion under guidelines promulgated by the American Academy of Actuaries. The undersigned professionals are members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the opinion contained herein.

The professionals responsible for developing the actuarial values in this report are available to answer any questions regarding the assumptions and procedures underlying the values. Please contact us if any questions are raised.

Sincerely,

 

	
/s/ Laird D. Zacheis
	
/s/ Yiping Yang

	
Laird D. Zacheis, F.S.A., M.A.A.A.
	
Yiping Yang, F.S.A., M.A.A.A.

	
Consulting Actuary
	
Consulting Actuary

 

LDZ/YY:jk

 

Offices in Principal Cities Worldwid

 

 

TABLE OF CONTENTS

 

	
SECTION
	
 
	
 
	
 
	
PAGE

	
 
	
 
	
 
	
 
	
 

	
I.
	
 
	
Introduction and Qualifications
	
 
	
1

	
 
	
 
	
 
	
 
	
 

	
II.
	
 
	
Summary of Results
	
 
	
4

	
 
	
 
	
 
	
 
	
 

	
III.
	
 
	
Product Descriptions, Methodology and Actuarial Assumptions
	
 
	
27

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
APPENDIX
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
A
	
 
	
Asset and Investment Assumptions
	
 
	
A-1

	
 
	
 
	
 
	
 
	
 

	
B
	
 
	
Liability Models and Assumptions
	
 
	
B-1

	
 
	
 
	
 
	
 
	
 

	
C
	
 
	
Detailed Statutory Income Projections
	
 
	
C-l

 

Milliman

 

 

 

 

 

SECTION I

Introduction and Qualifications

Milliman, Inc. (“Milliman”) was retained by Citigroup, Inc. (“Citi”) to perform certain actuarial analyses with respect to the life insurance business in Primerica Life Insurance Company (“Primerica” or “PLIC”). PLIC is wholly owned through various holding companies by Citi.

Specifically, our assignment has been to develop projected statutory earnings arising from the existing and new individual life business of Primerica and to calculate present values of these future earnings using discount rates of 11%, 13% and 15%.

The Primerica business consists primarily of level term traditional life business. Primerica markets through a network of about 100,000 independent agents who are primarily part-time, and who are exclusive to Primerica. The term business sold through this network is referred to generally as “term” in this report.

Milliman is frequently engaged to prepare such analyses of life insurance companies. The approach followed in this situation is consistent with methodology we have generally employed in previous engagements.

We have prepared this report with the understanding that it will be used by Citi and its advisors to analyze the potential value of Primerica. The report is intended to provide certain actuarial information and analyses as of June 30, 2009 that would assist a qualified actuary, technically competent in the area of actuarial appraisals, to develop an estimate of (1) the adjusted statutory book value of the companies as of June 30, 2009; (2) the projected amounts and present values of future statutory profits from insurance in force as of June 30, 2009; and (3) the projected amounts and present values of future statutory profits from insurance written after June 30, 2009.

In order to fully comprehend this report, any user of this report should be advised by an actuary with a substantial level of expertise in areas relevant to this analysis to appreciate the significance of the underlying assumptions and the impact of those assumptions on the illustrated results. This report must be read in its entirety to be understood.

This report may not be distributed, disclosed, copied or otherwise furnished to any party without our prior consent. Any distribution of this report must be in its entirety.

Nothing included in this report is to be used in any filings with any public body, such as but not limited to the Securities and Exchange Commission or State Insurance Departments, without prior written consent from Milliman. We understand this report may be shared with the Massachusetts Department of Insurance.

We have projected future statutory profits computed according to regulatory reporting criteria. The validity of these projections depends on how well future experience conforms to our assumptions. Our assumptions for future mortality, persistency, expenses, investment return and other actuarial factors are based on our evaluation of recent experience of Primerica, industry experience and anticipated future trends. The approach employed to develop the projection assumptions is described below.

	
 
	
1.
	
Mortality and persistency assumptions are based on the experience of Primerica and on general industry experience.

	
 
	
2.
	
Expenses were projected as a combination of unit expense allowables and excess costs to reproduce the budgeted expenses of Primerica.

	
 
	
3.
	
Future investment income reflects a new money investment yield of 5.70% based on assumptions for asset yield, quality, and maturity provided by Primerica. The projections are based on the June 30, 2009 interest rate environment.

	
 
	
4.
	
Financing of excess level term reserves is reflected based on a net cost of 300 bp of outstanding amounts per year.

	
 
	
5.
	
New business production assumptions were provided by Primerica and are summarized in Section II.

- 1 -

Milliman

 

Actual experience may differ from that assumed in the projections. To the extent actual experience is different from the assumptions underlying this Report, so will actual results differ from the projected results shown here. Sensitivity of results to changes in assumptions is provided as part of Section II, Summary of Results.

Rationale for Statutory Approach

Our development of the projected amounts and actuarial values in this report reflect statutory accounting practices. Two reasons why we believe it is appropriate to analyze a life company using the statutory approach are:

	
 
	
1)
	
Statutory accounting determines the availability of earnings for dividends to life company shareholders.

	
 
	
2)
	
Statutory surplus constitutes the funds available for investments in new business or other ventures requiring capital.

Relationship to Market Value

An actuarial appraisal value does not necessarily represent the value of a company's stock in the open market. Rather, it is derived from a projection of future earnings and therefore reflects the value of a company's earnings potential under a specific set of assumptions. Assignment of a value to any business enterprise is also a matter of informed judgment. Purchase or sales price is determined by the parties involved, based on their respective evaluations of all relevant factors, including:

	
 
	
1)
	
the perspective of the buyer and the seller and the level of confidence regarding the assumptions underlying projected earnings,

	
 
	
2)
	
the desired rate of return and the associated cost of capital,

	
 
	
3)
	
the degree of urgency associated with the sale or acquisition,

	
 
	
4)
	
economies of scale and scope associated with the potential transaction, and

	
 
	
5)
	
significant tax or other consequences/benefits, unique to a proposed transaction, which can have an effect on fair market value.

Data Reliance

We have relied on information supplied by Primerica as well as on published financial information. We performed no audits or independent verification of the information furnished to us. To the extent that there are any material errors in the information provided, the results of our analysis will be affected as well. The principal materials relied upon include:

	
 
	
1)
	
Information contained in the public and internal statutory and GAAP financial statements of Primerica.

	
 
	
2)
	
Inventory of insurance policies as of June 30, 2009, December 31, 2008 and December 31, 2007.

	
 
	
3)
	
Information on business inforce, including schedules or electronic files of premiums, policy benefits, commission rates, cost of insurance charges, description of guaranteed benefits, and other policy benefits.

	
 
	
4)
	
Information relating to Primerica’s statutory reserve practices.

	
 
	
5)
	
Current and historical pricing assumptions.

	
 
	
6)
	
Information and analysis prepared by Primerica on recent mortality and persistency experience.

	
 
	
7)
	
Information on invested assets as of June 30, 2009.

	
 
	
8)
	
Information on new investment strategy.

	
 
	
9)
	
Information on statutory/tax asset and reserve assumptions and differences and other information with respect to Federal income taxes.

	
 
	
10)
	
Information on the terms of reinsurance agreements.

- 2 -

Milliman

 

	
 
	
11)
	
Information on future premium production volumes, products, and mix of riders and other guaranteed benefits.

	
 
	
12)
	
Information on future expenses.

	
 
	
13)
	
Information on excess reserve financing costs provided by Primerica and Citi.

	
 
	
14)
	
Information on terms of reinsurance between Primerica and PrimeRe, a newly formed captive owned by Citi.

- 3 -

Milliman

 

.SECTION II

Summary of Results

Summary of Actuarial Appraisal Values

Table I summarizes the present value of future statutory profits from business inforce on June 30, 2009, and the development of the reinsurance ceding commission for 80% of the inforce business. The business values are based upon thirty years of projected profits. Amounts reflect cost of capital based on 300% of NAIC RBC (Company Action Level).

 

	
Table I

80% of PLIC Inforce Business

Actuarial Appraisal Value

(As of June 30, 2009, in millions)

	
 

	
 
	
 
	
 
	
11
	
%
	
 
	
 
	
13
	
%
	
 
	
 
	
15
	
%

	
Pre-Tax Value
	
 
	
$
	
3,667
	
 
	
 
	
$
	
3,361
	
 
	
 
	
$
	
3,108
	
 

	
Taxes
	
 
	
 
	
(1,070)
	
 
	
 
	
 
	
(959)
	
 
	
 
	
 
	
(867)
	
 

	
Cost of Capital at 300% RBC
	
 
	
 
	
(144)
	
 
	
 
	
 
	
(166)
	
 
	
 
	
 
	
(184)
	
 

	
Total After-tax
	
 
	
$
	
2,454
	
 
	
 
	
$
	
2,236
	
 
	
 
	
$
	
2,057
	
 

	
Tax Benefit on Reinsurance
	
 
	
 
	
1,047
	
 
	
 
	
 
	
923
	
 
	
 
	
 
	
819
	
 

	
Total Value
	
 
	
$
	
3,500
	
 
	
 
	
$
	
3,159
	
 
	
 
	
$
	
2,876
	
 

 

PLIC is coinsuring an additional 10% of the inforce to PrimeRe under a treaty that incorporates an experience refund for the business, as described later in this Section. The effect of the experience refund is to transfer back to PLIC the profits of the business on an economic reserve basis, subject to a cap on the mortality. For this treaty, the ceding commission is assumed to equal the difference between statutory and economic reserves, as estimated below:

 

	
PLIC

10% Coinsurance Treaty

(in millions)

	
 

	
Statutory Reserve
	
$
	
403

	
Economic Reserve
	
 
	
56

	
Ceding Commission
	
$
	
347

 

Tables II and III provide a summary of ten years of projected after-tax statutory profits for Primerica Life assuming ten years of projected new business, and after the reinsurance of the inforce business to

PrimeRe, a newly formed captive owned by Citi. No dividends are reflected out of PLIC. Tables IV and V provide a summary of the ten-year statutory income statements for PrimeRe.

Summaries of assumptions for each line of business are provided in Section III and in the Appendices. Detailed projections of annual statutory profits and present values of profit by line of business are provided in Appendix C.

 

 

 

- 4 -

Milliman

 

 

	
Table II

Primerica Life

Line of Business Statutory Projection

(in millions of dollars)
	
 

	
 
	
 

	
Year Ending June 30,
	
 
	
2009
	
 
	
 
	
2010
	
 
	
 
	
2011
	
 
	
 
	
2012
	
 
	
 
	
2013
	
 
	
 
	
2014
	
 
	
 
	
2015
	
 
	
 
	
2016
	
 
	
 
	
2017
	
 
	
 
	
2018
	
 
	
 
	
2019
	
 

	
Existing Business at 06/30/2009
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Primerica - Net (Before New Conversions)
	
 
	
 
	
 
	
 
	
 
	
$
	
210.6
	
 
	
 
	
$
	
143.0
	
 
	
 
	
$
	
137.7
	
 
	
 
	
$
	
133.5
	
 
	
 
	
$
	
129.4
	
 
	
 
	
$
	
124.2
	
 
	
 
	
$
	
122.1
	
 
	
 
	
$
	
123.7
	
 
	
 
	
$
	
128.3
	
 
	
 
	
$
	
130.3
	
 

	
Primerica New Conversions - Net
	
 
	
 
	
 
	
 
	
 
	
 
	
(42.4
	
)
	
 
	
 
	
0.2
	
 
	
 
	
 
	
(0.1
	
)
	
 
	
 
	
(1.7
	
)
	
 
	
 
	
(3.0
	
)
	
 
	
 
	
(3.4
	
)
	
 
	
 
	
(3.8
	
)
	
 
	
 
	
(12.2
	
)
	
 
	
 
	
(13.0
	
)
	
 
	
 
	
(18.5
	
)

	
Miscellaneous Primerica
	
 
	
 
	
 
	
 
	
 
	
 
	
12.3
	
 
	
 
	
 
	
12.0
	
 
	
 
	
11.9
	
 
	
 
	
 
	
11.9
	
 
	
 
	
 
	
12.0
	
 
	
 
	
 
	
12.0
	
 
	
 
	
 
	
12.0
	
 
	
 
	
 
	
12.0
	
 
	
 
	
 
	
12.0
	
 
	
 
	
 
	
11.9
	
 

	
Total Existing Business
	
 
	
 
	
 
	
 
	
 
	
$
	
180.6
	
 
	
 
	
$
	
155.1
	
 
	
 
	
$
	
149.5
	
 
	
 
	
$
	
143.7
	
 
	
 
	
$
	
138.3
	
 
	
 
	
$
	
132.8
	
 
	
 
	
$
	
130.4
	
 
	
 
	
$
	
123.6
	
 
	
 
	
$
	
127.3
	
 
	
 
	
$
	
123.8
	
 

	
Ten Years of New Business from 06/30/2009
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Traditional Life
	
 
	
 
	
 
	
 
	
 
	
$
	
(200.8
	
)
	
 
	
$
	
(180.2
	
)
	
 
	
$
	
(157.0
	
)
	
 
	
$(134.4)
	
 
	
 
	
$
	
(109.9
	
)
	
 
	
$
	
(86.5
	
)
	
 
	
$
	
(60.7
	
)
	
 
	
$
	
(31.2
	
)
	
 
	
$
	
1.7
	
 
	
 
	
$
	
38.2
	
 

	
Primerica Waiver of Premium
	
 
	
 
	
 
	
 
	
 
	
 
	
0.6
	
 
	
 
	
 
	
1.5
	
 
	
 
	
 
	
2.3
	
 
	
 
	
3.1
	
 
	
 
	
 
	
3.9
	
 
	
 
	
 
	
4.8
	
 
	
 
	
 
	
5.7
	
 
	
 
	
 
	
6.6
	
 
	
 
	
 
	
7.6
	
 
	
 
	
 
	
8.7
	
 

	
Primerica Retained Asset Account
	
 
	
 
	
 
	
 
	
 
	
 
	
0.2
	
 
	
 
	
 
	
0.5
	
 
	
 
	
 
	
0.9
	
 
	
 
	
1.3
	
 
	
 
	
 
	
1.7
	
 
	
 
	
 
	
2.3
	
 
	
 
	
 
	
2.9
	
 
	
 
	
 
	
3.5
	
 
	
 
	
 
	
4.3
	
 
	
 
	
 
	
5.1
	
 

	
Total New Business
	
 
	
 
	
 
	
 
	
 
	
$
	
(200.0
	
)
	
 
	
$
	
(178.2
	
)
	
 
	
$
	
(153.8
	
)
	
 
	
$
	
(130.0
	
)
	
 
	
$
	
(104.2
	
)
	
 
	
$
	
(79.4
	
)
	
 
	
$
	
(52.1
	
)
	
 
	
$
	
(21.1
	
)
	
 
	
$
	
13.6
	
 
	
 
	
$
	
52.0
	
 

	
Unallocated Expense
	
 
	
 
	
 
	
 
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)

	
Change in Internal Reserve Financing
	
 
	
 
	
 
	
 
	
 
	
23.4
	
 
	
 
	
(0.1)
	
 
	
 
	
 
	
(6.8
	
)
	
 
	
(37.2
	
)
	
 
	
 
	
(36.0
	
)
	
 
	
 
	
(35.1
	
)
	
 
	
 
	
(34.8
	
)
	
 
	
 
	
(34.4
	
)
	
 
	
 
	
(33.8
	
)
	
 
	
 
	
(31.9
	
)

	
Interest Cost on Internal Reserve Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
(30.1
	
)
	
 
	
 
	
(32.1
	
)
	
 
	
 
	
(32.1
	
)
	
 
	
(31.5
	
)
	
 
	
 
	
(28.3
	
)
	
 
	
 
	
(25.2
	
)
	
 
	
 
	
(22.1
	
)
	
 
	
 
	
(19.1
	
)
	
 
	
 
	
(16.1
	
)
	
 
	
 
	
(13.2
	
)

	
Interest on Capital, Surplus & AVR
	
 
	
 
	
 
	
 
	
 
	
 
	
21.9
	
 
	
 
	
 
	
21.3
	
 
	
 
	
 
	
19.1
	
 
	
 
	
17.5
	
 
	
 
	
 
	
15.1
	
 
	
 
	
14.0
	
 
	
 
	
 
	
14.2
	
 
	
 
	
16.0
	
 
	
 
	
 
	
19.4
	
 
	
 
	
 
	
25.5
	
 

	
Total Pre-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
(20.9
	
)
	
 
	
$
	
(50.6
	
)
	
 
	
$
	
(40.7
	
)
	
 
	
$
	
(54.1
	
)
	
 
	
$
	
(31.7
	
)
	
 
	
$
	
(9.5
	
)
	
 
	
$
	
18.8
	
 
	
 
	
$
	
48.4
	
 
	
 
	
$
	
93.8
	
 
	
 
	
$
	
139.6
	
 

	
Federal Income Tax (35.0%)
	
 
	
 
	
 
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
(67.8
	
)

	
NBL Distributed Earnings
	
 
	
 
	
 
	
 
	
 
	
 
	
11.3
	
 
	
 
	
 
	
12.2
	
 
	
 
	
12.2
	
 
	
 
	
12.3
	
 
	
 
	
 
	
12.5
	
 
	
 
	
12.3
	
 
	
 
	
 
	
12.3
	
 
	
 
	
 
	
12.2
	
 
	
 
	
12.8
	
 
	
 
	
 
	
13.5
	
 

	
After-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
(9.7
	
)
	
 
	
$
	
(38.4
	
)
	
 
	
$
	
(28.5
	
)
	
 
	
$
	
(41.9
	
)
	
 
	
$
	
(19.2
	
)
	
 
	
$
	
2.8
	
 
	
 
	
$
	
31.2
	
 
	
 
	
$
	
60.6
	
 
	
 
	
$
	
106.7
	
 
	
 
	
$
	
85.4
	
 

	
Distributed Earnings (Target RBC Ratio=300%)
	
 
	
$
	
20.0
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 

	
General Account Liabilities
	
 
	
$
	
673.7
	
 
	
 
	
$
	
682.3
	
 
	
 
	
$
	
731.7
	
 
	
 
	
$
	
832.4
	
 
	
 
	
$
	
978.1
	
 
	
 
	
$
	
1,163.9
	
 
	
 
	
$
	
1,387.8
	
 
	
 
	
$
	
1,645.5
	
 
	
 
	
$
	
1,927.3
	
 
	
 
	
$
	
2,247.5
	
 
	
 
	
$
	
2,605.5
	
 

	
Separate Account Liabilities
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
General Account Tax Reserve (Net of DAC)
	
 
	
 
	
(50.7
	
)
	
 
	
 
	
(5.9
	
)
	
 
	
 
	
90.8
	
 
	
 
	
 
	
232.1
	
 
	
 
	
409.3
	
 
	
 
	
 
	
615.6
	
 
	
 
	
 
	
846.6
	
 
	
 
	
 
	
1,096.7
	
 
	
 
	
 
	
1,354.2
	
 
	
 
	
 
	
1,631.0
	
 
	
 
	
 
	
1,928.1
	
 

	
External Reserve Financing (w/LOC @300bp)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
50% Inforce Internal Reserve Financing 

   (w/LOC @300bp)
	
 
	
 
	
345.8
	
 
	
 
	
 
	
369.2
	
 
	
 
	
 
	
369.1
	
 
	
 
	
 
	
362.4
	
 
	
 
	
325.2
	
 
	
 
	
289.2
	
 
	
 
	
 
	
254.1
	
 
	
 
	
219.3
	
 
	
 
	
185.0
	
 
	
 
	
 
	
151.2
	
 
	
 
	
 
	
119.3
	
 

	
Interest Maintenance Reserve
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
Capital, Surplus & AVR Excluding NBL
	
 
	
 
	
384.0
	
 
	
 
	
 
	
374.3
	
 
	
 
	
 
	
335.9
	
 
	
 
	
 
	
307.4
	
 
	
 
	
 
	
265.6
	
 
	
 
	
 
	
246.4
	
 
	
 
	
 
	
249.2
	
 
	
 
	
 
	
280.4
	
 
	
 
	
 
	
341.0
	
 
	
 
	
 
	
447.7
	
 
	
 
	
 
	
533.0
	
 

	
NBL Carrying Value
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 

	
Capital, Surplus & AVR Including NBL
	
 
	
 
	
534.0
	
 
	
 
	
524.3
	
 
	
 
	
 
	
485.9
	
 
	
 
	
 
	
457.4
	
 
	
 
	
 
	
415.6
	
 
	
 
	
 
	
396.4
	
 
	
 
	
 
	
399.2
	
 
	
 
	
 
	
430.4
	
 
	
 
	
 
	
491.0
	
 
	
 
	
 
	
597.7
	
 
	
 
	
 
	
683.0
	
 

	
NAIC RBC (Company Action Level)
	
 
	
 
	
90.0
	
 
	
 
	
 
	
93.3
	
 
	
 
	
 
	
97.2
	
 
	
 
	
 
	
101.7
	
 
	
 
	
 
	
107.1
	
 
	
 
	
 
	
113.1
	
 
	
 
	
 
	
119.6
	
 
	
 
	
 
	
126.9
	
 
	
 
	
 
	
135.5
	
 
	
 
	
 
	
145.0
	
 
	
 
	
 
	
155.6
	
 

	
RBC Ratio (Company Action Level)
	
 
	
 
	
593.2
	
%
	
 
	
 
	
562.0
	
%
	
 
	
 
	
499.8
	
%
	
 
	
 
	
449.8
	
%
	
 
	
 
	
388.1
	
%
	
 
	
 
	
350.6
	
%
	
 
	
 
	
333.9
	
%
	
 
	
 
	
339.1
	
%
	
 
	
 
	
362.4
	
%
	
 
	
 
	
412.3
	
%
	
 
	
 
	
438.9
	
%

 

Note: Interest on Capital, Surplus, & AVR is based on a net earnings rate of 5.70%.

- 5 -

Milliman

 

	
Table III

Primerica Life

Projected Statutory Operating Results

(in millions of dollars)
	
 

	
 
	
 

	
Year Ending June 30,
	
 
	
2009
	
 
	
 
	
2010
	
 
	
 
	
2011
	
 
	
 
	
2012
	
 
	
 
	
2013
	
 
	
 
	
2014
	
 
	
 
	
2015
	
 
	
 
	
2016
	
 
	
 
	
2017
	
 
	
 
	
2018
	
 
	
 
	
2019
	
 

	
Existing and New Business
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Gross Premium Income
	
 
	
 
	
 
	
 
	
 
	
$
	
422.6
	
 
	
 
	
$
	
546.2
	
 
	
 
	
$
	
666.1
	
 
	
 
	
$
	
787.2
	
 
	
 
	
$
	
911.3
	
 
	
 
	
$
	
1,040.6
	
 
	
 
	
$
	
1,176.9
	
 
	
 
	
$
	
1,345.0
	
 
	
 
	
$
	
1,539.9
	
 
	
 
	
$
	
1,736.5
	
 

	
Reinsurance Premiums (Net of 

   Allowances)
	
 
	
 
	
 
	
 
	
 
	
 
	
(118.1
	
)
	
 
	
 
	
(142.6
	
)
	
 
	
 
	
(171.8
	
)
	
 
	
 
	
(205.1
	
)
	
 
	
 
	
(242.6
	
)
	
 
	
 
	
(283.2
	
)
	
 
	
 
	
(328.2
	
)
	
 
	
 
	
(396.4
	
)
	
 
	
 
	
(470.3
	
)
	
 
	
 
	
(550.3
	
)

	
Allowances From PrimeRe
	
 
	
 
	
 
	
 
	
 
	
 
	
92.1
	
 
	
 
	
 
	
85.3
	
 
	
 
	
 
	
80.8
	
 
	
 
	
 
	
77.3
	
 
	
 
	
 
	
74.3
	
 
	
 
	
 
	
71.5
	
 
	
 
	
 
	
69.2
	
 
	
 
	
 
	
65.1
	
 
	
 
	
 
	
61.3
	
 
	
 
	
 
	
57.8
	
 

	
Investment Income
	
 
	
 
	
 
	
 
	
 
	
 
	
79.3
	
 
	
 
	
 
	
82.4
	
 
	
 
	
 
	
84.7
	
 
	
 
	
 
	
89.9
	
 
	
 
	
 
	
96.6
	
 
	
 
	
 
	
106.6
	
 
	
 
	
 
	
119.8
	
 
	
 
	
 
	
136.0
	
 
	
 
	
 
	
155.8
	
 
	
 
	
 
	
180.2
	
 

	
Total Income
	
 
	
 
	
 
	
 
	
 
	
$
	
475.9
	
 
	
 
	
$571.4
	
 
	
 
	
$
	
659.8
	
 
	
 
	
$
	
749.3
	
 
	
 
	
$
	
839.6
	
 
	
 
	
$
	
935.5
	
 
	
 
	
$
	
1,037.7
	
 
	
 
	
$
	
1,149.6
	
 
	
 
	
$
	
1,286.7
	
 
	
 
	
$
	
1,424.1
	
 

	
Surrender, Health and Other Benefits
	
 
	
 
	
 
	
 
	
 
	
$
	
33.7
	
 
	
 
	
$
	
12.7
	
 
	
 
	
$
	
8.4
	
 
	
 
	
$
	
7.7
	
 
	
 
	
$
	
8.1
	
 
	
 
	
$
	
9.0
	
 
	
 
	
$
	
10.6
	
 
	
 
	
$
	
12.2
	
 
	
 
	
$
	
14.4
	
 
	
 
	
$
	
16.5
	
 

	
Direct Death Benefits
	
 
	
 
	
 
	
 
	
 
	
 
	
182.1
	
 
	
 
	
207.0
	
 
	
 
	
 
	
235.9
	
 
	
 
	
 
	
269.4
	
 
	
 
	
 
	
306.9
	
 
	
 
	
 
	
348.3
	
 
	
 
	
 
	
393.8
	
 
	
 
	
 
	
456.1
	
 
	
 
	
 
	
534.4
	
 
	
 
	
 
	
616.3
	
 

	
Reinsurance Death Benefits
	
 
	
 
	
 
	
 
	
 
	
 
	
(103.9
	
)
	
 
	
 
	
(126.4
	
)
	
 
	
 
	
(152.4
	
)
	
 
	
 
	
(182.3
	
)
	
 
	
 
	
(215.9
	
)
	
 
	
 
	
(253.1
	
)
	
 
	
 
	
(293.7
	
)
	
 
	
 
	
(348.4
	
)
	
 
	
 
	
(417.1
	
)
	
 
	
 
	
(490.6
	
)

	
Cost of Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
30.1
	
 
	
 
	
 
	
32.1
	
 
	
 
	
 
	
32.1
	
 
	
 
	
 
	
31.5
	
 
	
 
	
 
	
28.3
	
 
	
 
	
 
	
25.2
	
 
	
 
	
 
	
22.1
	
 
	
 
	
 
	
19.1
	
 
	
 
	
 
	
16.1
	
 
	
 
	
 
	
13.2
	
 

	
Reserve Increase
	
 
	
 
	
 
	
 
	
 
	
 
	
5.9
	
 
	
 
	
 
	
46.8
	
 
	
 
	
 
	
100.9
	
 
	
 
	
 
	
172.9
	
 
	
 
	
 
	
208.7
	
 
	
 
	
 
	
243.4
	
 
	
 
	
 
	
273.0
	
 
	
 
	
 
	
292.1
	
 
	
 
	
 
	
327.5
	
 
	
 
	
 
	
362.7
	
 

	
Expense (Other Than Premium Tax) 

   (Incl Unalloc)
	
 
	
 
	
 
	
 
	
 
	
 
	
158.2
	
 
	
 
	
 
	
162.5
	
 
	
 
	
 
	
168.7
	
 
	
 
	
 
	
176.1
	
 
	
 
	
 
	
184.4
	
 
	
 
	
 
	
194.2
	
 
	
 
	
 
	
205.3
	
 
	
 
	
 
	
217.4
	
 
	
 
	
 
	
230.2
	
 
	
 
	
 
	
244.1
	
 

	
Premium Tax
	
 
	
 
	
 
	
 
	
 
	
 
	
35.1
	
 
	
 
	
36.0
	
 
	
 
	
 
	
37.4
	
 
	
 
	
39.0
	
 
	
 
	
 
	
40.8
	
 
	
 
	
 
	
42.9
	
 
	
 
	
 
	
45.1
	
 
	
 
	
 
	
47.5
	
 
	
 
	
 
	
50.2
	
 
	
 
	
 
	
53.1
	
 

	
Commission
	
 
	
 
	
 
	
 
	
 
	
 
	
155.6
	
 
	
 
	
 
	
251.4
	
 
	
 
	
 
	
269.4
	
 
	
 
	
 
	
289.1
	
 
	
 
	
 
	
310.1
	
 
	
 
	
 
	
335.2
	
 
	
 
	
 
	
362.8
	
 
	
 
	
 
	
405.3
	
 
	
 
	
 
	
437.2
	
 
	
 
	
 
	
469.2
	
 

	
Total Benefits and Expenses
	
 
	
 
	
 
	
 
	
 
	
$
	
496.8
	
 
	
 
	
$
	
622.0
	
 
	
 
	
$
	
700.5
	
 
	
 
	
$
	
803.5
	
 
	
 
	
$
	
871.3
	
 
	
 
	
$
	
945.0
	
 
	
 
	
$
	
1,018.9
	
 
	
 
	
$
	
1,101.2
	
 
	
 
	
$
	
1,192.9
	
 
	
 
	
$
	
1,284.5
	
 

	
Total Pre-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
(20.9
	
)
	
 
	
$
	
(50.6
	
)
	
 
	
$
	
(40.7
	
)
	
 
	
$
	
(54.1
	
)
	
 
	
$
	
(31.7
	
)
	
 
	
$
	
(9.5
	
)
	
 
	
$
	
18.8
	
 
	
 
	
$
	
48.4
	
 
	
 
	
$
	
93.8
	
 
	
 
	
$
	
139.6
	
 

	
Federal Income Tax (35.0%)
	
 
	
 
	
 
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
(67.8
	
)

	
NBL Distributed Earnings
	
 
	
 
	
 
	
 
	
 
	
 
	
11.3
	
 
	
 
	
 
	
12.2
	
 
	
 
	
 
	
12.2
	
 
	
 
	
 
	
12.3
	
 
	
 
	
 
	
12.5
	
 
	
 
	
 
	
12.3
	
 
	
 
	
 
	
12.3
	
 
	
 
	
 
	
12.2
	
 
	
 
	
 
	
12.8
	
 
	
 
	
 
	
13.5
	
 

	
After-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
(9.7
	
)
	
 
	
$(38.4
	
) 
	
 
	
$
	
(28.5
	
)
	
 
	
$
	
(41.9
	
)
	
 
	
$
	
(19.2
	
)
	
 
	
$
	
2.8
	
 
	
 
	
$
	
31.2
	
 
	
 
	
$
	
60.6
	
 
	
 
	
$
	
106.7
	
 
	
 
	
$
	
85.4
	
 

	
Distributed Earnings (Target RBC 

   Ratio=300%)
	
 
	
$
	
20.0
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 

	
General Account Liabilities
	
 
	
$
	
673.7
	
 
	
 
	
$
	
682.3
	
 
	
 
	
$
	
731.7
	
 
	
 
	
$
	
832.4
	
 
	
 
	
$
	
978.1
	
 
	
 
	
$
	
1,163.9
	
 
	
 
	
$
	
1,387.8
	
 
	
 
	
$
	
1,645.5
	
 
	
 
	
$
	
1,927.3
	
 
	
 
	
$
	
2,247.5
	
 
	
 
	
$
	
2,605.5
	
 

	
Separate Account Liabilities
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
General Account Tax Reserve (Net of 

   DAC)
	
 
	
 
	
(50.7
	
)
	
 
	
 
	
(5.9
	
)
	
 
	
 
	
90.8
	
 
	
 
	
 
	
232.1
	
 
	
 
	
 
	
409.3
	
 
	
 
	
 
	
615.6
	
 
	
 
	
 
	
846.6
	
 
	
 
	
 
	
1,096.7
	
 
	
 
	
 
	
1,354.2
	
 
	
 
	
 
	
1,631.0
	
 
	
 
	
 
	
1,928.1
	
 

	
External Reserve Financing (w/LOC 

   @300bp)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
50% Inforce Internal Reserve 

   Financing (w/LOC @300bp)
	
 
	
 
	
345.8
	
 
	
 
	
 
	
369.2
	
 
	
 
	
 
	
369.1
	
 
	
 
	
 
	
362.4
	
 
	
 
	
 
	
325.2
	
 
	
 
	
 
	
289.2
	
 
	
 
	
254.1
	
 
	
 
	
 
	
219.3
	
 
	
 
	
 
	
185.0
	
 
	
 
	
 
	
151.2
	
 
	
 
	
 
	
119.3
	
 

	
Interest Maintenance Reserve
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
Capital, Surplus & AVR
	
 
	
 
	
534.0
	
 
	
 
	
 
	
524.3
	
 
	
 
	
 
	
485.9
	
 
	
 
	
 
	
457.4
	
 
	
 
	
 
	
415.6
	
 
	
 
	
 
	
396.4
	
 
	
 
	
 
	
399.2
	
 
	
 
	
 
	
430.4
	
 
	
 
	
 
	
491.0
	
 
	
 
	
 
	
597.7
	
 
	
 
	
 
	
683.0
	
 

	
NAIC RBC (Company Action Level)
	
 
	
 
	
90.0
	
 
	
 
	
 
	
93.3
	
 
	
 
	
 
	
97.2
	
 
	
 
	
 
	
101.7
	
 
	
 
	
 
	
107.1
	
 
	
 
	
 
	
113.1
	
 
	
 
	
 
	
119.6
	
 
	
 
	
 
	
126.9
	
 
	
 
	
 
	
135.5
	
 
	
 
	
 
	
145.0
	
 
	
 
	
 
	
155.6
	
 

	
RBC Ratio (Company Action Level)
	
 
	
 
	
593.2
	
%
	
 
	
 
	
562.0
	
%
	
 
	
 
	
499.8
	
%
	
 
	
 
	
449.8
	
%
	
 
	
 
	
388.1
	
%
	
 
	
 
	
350.6
	
%
	
 
	
 
	
333.9
	
%
	
 
	
 
	
339.1
	
%
	
 
	
 
	
362.4
	
%
	
 
	
 
	
412.3
	
%
	
 
	
 
	
438.9
	
%

 

Note: Interest on Capital, Surplus, & AVR is based on a net earnings rate of 5.70%.

 

 

- 6 -

Milliman

 

 

	
Table IV PrimeRe
	
 

	
Line of Business Statutory Projection 
(post-tax; in millions of dollars)
	
 

	
 
	
 

	
Year Ending June 30,
	
 
	
2009
	
 
	
 
	
2010
	
 
	
 
	
2011
	
 
	
 
	
2012
	
 
	
 
	
2013
	
 
	
 
	
2014
	
 
	
 
	
2015
	
 
	
 
	
2016
	
 
	
 
	
2017
	
 
	
 
	
2018
	
 
	
 
	
2019
	
 

	
Existing Business at 06/30/2009
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Term — Net (Before New Conversions)
	
 
	
 
	
 
	
 
	
 
	
$
	
534.4
	
 
	
 
	
$
	
572.0
	
 
	
 
	
$
	
550.7
	
 
	
 
	
$
	
533.9
	
 
	
 
	
$
	
517.4
	
 
	
 
	
$
	
496.8
	
 
	
 
	
$
	
488.5
	
 
	
 
	
$
	
477.0
	
 
	
 
	
$
	
453.7
	
 
	
 
	
$
	
421.9
	
 

	
Term — New Conversions - Net
	
 
	
 
	
 
	
 
	
 
	
 
	
(169.3
	
)
	
 
	
0.7
	
 
	
 
	
 
	
(0.3
	
)
	
 
	
 
	
(6.7
	
)
	
 
	
 
	
(11.9
	
)
	
 
	
 
	
(13.6
	
)
	
 
	
 
	
(15.0
	
)
	
 
	
 
	
(7.6
	
)
	
 
	
 
	
(4.9
	
)
	
 
	
2.2
	
 

	
Canada Segregated Funds
	
 
	
 
	
 
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
Miscellaneous
	
 
	
 
	
 
	
 
	
 
	
$
	
12.3
	
 
	
 
	
$
	
11.4
	
 
	
 
	
$
	
10.7
	
 
	
 
	
$
	
10.1
	
 
	
 
	
$
	
9.6
	
 
	
 
	
$
	
9.0
	
 
	
 
	
$
	
8.5
	
 
	
 
	
$
	
7.9
	
 
	
 
	
$
	
7.4
	
 
	
 
	
$
	
7.0
	
 

	
Total Existing Business
	
 
	
 
	
 
	
 
	
 
	
$
	
377.4
	
 
	
 
	
$
	
584.1
	
 
	
 
	
$
	
561.1
	
 
	
 
	
$
	
537.4
	
 
	
 
	
$
	
515.0
	
 
	
 
	
$
	
492.2
	
 
	
 
	
$
	
482.0
	
 
	
 
	
$
	
477.3
	
 
	
 
	
$
	
456.3
	
 
	
 
	
$
	
431.1
	
 

	
Ten Years of New Business from 06/30/2009

N/A
	
 
	
 
	
 
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 

	
Total New Business
	
 
	
 
	
 
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 

	
Unallocated Expense
	
 
	
 
	
 
	
 
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)

	
Change in Internal Reserve Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
(23.4
	
)
	
 
	
0.1
	
 
	
 
	
6.8
	
 
	
 
	
37.2
	
 
	
 
	
36.0
	
 
	
 
	
35.1
	
 
	
 
	
34.8
	
 
	
 
	
34.4
	
 
	
 
	
33.8
	
 
	
 
	
31.9
	
 

	
Interest Cost on Internal Reserve Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
30.1
	
 
	
 
	
 
	
32.1
	
 
	
 
	
 
	
32.1
	
 
	
 
	
 
	
31.5
	
 
	
 
	
 
	
28.3
	
 
	
 
	
 
	
25.2
	
 
	
 
	
22.1
	
 
	
 
	
 
	
19.1
	
 
	
 
	
 
	
16.1
	
 
	
 
	
 
	
13.2
	
 

	
Interest on Capital, Surplus & AVR
	
 
	
 
	
 
	
 
	
 
	
 
	
17.3
	
 
	
 
	
 
	
16.3
	
 
	
 
	
 
	
15.2
	
 
	
 
	
 
	
14.4
	
 
	
 
	
 
	
13.5
	
 
	
 
	
 
	
12.6
	
 
	
 
	
 
	
11.9
	
 
	
 
	
11.2
	
 
	
 
	
 
	
10.4
	
 
	
 
	
 
	
9.6
	
 

	
Total Pre-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
396.4
	
 
	
 
	
$
	
627.6
	
 
	
 
	
$
	
610.2
	
 
	
 
	
$
	
615.5
	
 
	
 
	
$
	
587.8
	
 
	
 
	
$
	
560.1
	
 
	
 
	
$
	
545.8
	
 
	
 
	
$
	
537.0
	
 
	
 
	
$
	
511.5
	
 
	
 
	
$
	
480.7
	
 

	
Federal Income Tax (35.0%)
	
 
	
 
	
 
	
 
	
 
	
 
	
(175.8
	
)
	
 
	
 
	
(200.5
	
)
	
 
	
 
	
(193.8
	
)
	
 
	
 
	
(196.5
	
)
	
 
	
 
	
(187.7
	
)
	
 
	
 
	
(178.9
	
)
	
 
	
 
	
(175.1
	
)
	
 
	
 
	
(173.6
	
)
	
 
	
 
	
(166.3
	
)
	
 
	
 
	
(157.6
	
)

	
After-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
220.6
	
 
	
 
	
$
	
427.0
	
 
	
 
	
$
	
416.5
	
 
	
 
	
$
	
419.0
	
 
	
 
	
$
	
400.1
	
 
	
 
	
$
	
381.2
	
 
	
 
	
$
	
370.7
	
 
	
 
	
$
	
363.4
	
 
	
 
	
$
	
345.2
	
 
	
 
	
$
	
323.1
	
 

	
Distributed Earnings
	
 
	
$
	
—
	
 
	
 
	
$
	
238.1
	
 
	
 
	
$
	
445.0
	
 
	
 
	
$
	
431.9
	
 
	
 
	
$
	
434.1
	
 
	
 
	
$
	
415.3
	
 
	
 
	
$
	
393.6
	
 
	
 
	
$
	
383.3
	
 
	
 
	
$
	
377.8
	
 
	
 
	
$
	
359.3
	
 
	
 
	
$
	
337.0
	
 

	
General Account Liabilities
	
 
	
$
	
3,443.7
	
 
	
 
	
$
	
3,635.0
	
 
	
 
	
$
	
3,615.4
	
 
	
 
	
$
	
3,556.5
	
 
	
 
	
$
	
3,438.6
	
 
	
 
	
$
	
3,294.6
	
 
	
 
	
$
	
3,130.8
	
 
	
 
	
$
	
2,936.1
	
 
	
 
	
$
	
2,717.3
	
 
	
 
	
$
	
2,471.8
	
 
	
 
	
$
	
2,208.8
	
 

	
Separate Account Liabilities
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
General Account Tax Reserve (Net of DAC)
	
 
	
 
	
2,642.4
	
 
	
 
	
 
	
2,685.6
	
 
	
 
	
 
	
2,712.5
	
 
	
 
	
 
	
2,706.6
	
 
	
 
	
 
	
2,667.5
	
 
	
 
	
 
	
2,597.0
	
 
	
 
	
 
	
2,503.3
	
 
	
 
	
 
	
2,373.6
	
 
	
 
	
 
	
2,215.1
	
 
	
 
	
 
	
2,025.2
	
 
	
 
	
 
	
1,812.0
	
 

	
External Reserve Financing (w/LOC @300bp)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
50% Inforce Internal Reserve Financing

(w/LOC @300bp)
	
 
	
 
	
(345.8
	
)
	
 
	
 
	
(369.2
	
)
	
 
	
(369.1)
	
 
	
 
	
 
	
(362.4
	
)
	
 
	
 
	
(325.2
	
)
	
 
	
 
	
(289.2
	
)
	
 
	
 
	
(254.1
	
)
	
 
	
 
	
(219.3
	
)
	
 
	
 
	
(185.0
	
)
	
 
	
 
	
(151.2
	
)
	
 
	
 
	
(119.3
	
)

	
Interest Maintenance Reserve
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
Capital, Surplus & AVR
	
 
	
 
	
303.0
	
 
	
 
	
 
	
285.4
	
 
	
 
	
 
	
267.5
	
 
	
 
	
 
	
252.0
	
 
	
 
	
 
	
236.9
	
 
	
 
	
 
	
221.7
	
 
	
 
	
 
	
209.3
	
 
	
 
	
 
	
196.7
	
 
	
 
	
 
	
182.3
	
 
	
 
	
 
	
168.2
	
 
	
 
	
 
	
154.3
	
 

	
NAIC RBC (Company Action Level)
	
 
	
 
	
101.0
	
 
	
 
	
 
	
95.1
	
 
	
 
	
 
	
89.2
	
 
	
 
	
 
	
84.0
	
 
	
 
	
 
	
79.0
	
 
	
 
	
 
	
73.9
	
 
	
 
	
 
	
69.8
	
 
	
 
	
 
	
65.6
	
 
	
 
	
 
	
60.8
	
 
	
 
	
 
	
56.1
	
 
	
 
	
 
	
51.4
	
 

	
RBC Ratio (Company Action Level)
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
300.0%
	
 
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%

 

Note: Interest on Capital, Surplus, & AVR is based on a net earnings rate of 5.70%.

- 7 -

Milliman

 

 

	
Table V PrimeRe
	
 

	
Projected Statutory Operating 
Results (in millions of dollars)
	
 

	
 
	
 
	
 
	
 

	
Year Ending June 30,
	
 
	
2009
	
 
	
 
	
2010
	
 
	
 
	
2011
	
 
	
 
	
2012
	
 
	
 
	
2013
	
 
	
 
	
2014
	
 
	
 
	
2015
	
 
	
 
	
2016
	
 
	
 
	
2017
	
 
	
 
	
2018
	
 
	
 
	
2019
	
 

	
Existing and New Business
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Gross Premium Income
	
 
	
 
	
 
	
 
	
 
	
$
	
1,330.7
	
 
	
 
	
$
	
1,255.1
	
 
	
 
	
$
	
1,202.9
	
 
	
 
	
$
	
1,163.9
	
 
	
 
	
$
	
1,132.6
	
 
	
 
	
$
	
1,104.5
	
 
	
 
	
$
	
1,079.1
	
 
	
 
	
$
	
1,030.3
	
 
	
 
	
$
	
969.7
	
 
	
 
	
$
	
920.1
	
 

	
Reinsurance Premiums (Net of Allowances)
	
 
	
 
	
 
	
 
	
 
	
 
	
(421.0
	
)
	
 
	
 
	
(435.9
	
)
	
 
	
 
	
(452.3
	
)
	
 
	
 
	
(470.4
	
)
	
 
	
 
	
(489.8
	
)
	
 
	
 
	
(505.1
	
)
	
 
	
 
	
(519.0
	
)
	
 
	
 
	
(515.0
	
)
	
 
	
 
	
(507.7
	
)
	
 
	
 
	
(501.5
	
)

	
Seg Fund Policy Charges
	
 
	
 
	
 
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
Investment Income
	
 
	
 
	
 
	
 
	
 
	
 
	
205.7
	
 
	
 
	
 
	
212.9
	
 
	
 
	
 
	
209.3
	
 
	
 
	
 
	
204.1
	
 
	
 
	
 
	
197.4
	
 
	
 
	
 
	
189.3
	
 
	
 
	
 
	
180.3
	
 
	
 
	
 
	
169.9
	
 
	
 
	
 
	
157.5
	
 
	
 
	
 
	
143.8
	
 

	
Total Income
	
 
	
 
	
 
	
 
	
 
	
$
	
1,115.4
	
 
	
 
	
$
	
1,032.1
	
 
	
 
	
$
	
959.9
	
 
	
 
	
$
	
897.6
	
 
	
 
	
$
	
840.2
	
 
	
 
	
$
	
788.8
	
 
	
 
	
$
	
740.5
	
 
	
 
	
$
	
685.1
	
 
	
 
	
$
	
619.4
	
 
	
 
	
$
	
562.3
	
 

	
Surrender, Health and Other Benefits
	
 
	
 
	
 
	
 
	
 
	
$
	
46.7
	
 
	
 
	
$
	
45.0
	
 
	
 
	
$
	
41.7
	
 
	
 
	
$
	
39.5
	
 
	
 
	
$
	
37.8
	
 
	
 
	
$
	
36.3
	
 
	
 
	
$
	
34.8
	
 
	
 
	
$
	
33.7
	
 
	
 
	
$
	
32.2
	
 
	
 
	
$
	
30.7
	
 

	
Direct Death Benefits
	
 
	
 
	
 
	
 
	
 
	
 
	
665.3
	
 
	
 
	
 
	
661.3
	
 
	
 
	
 
	
671.3
	
 
	
 
	
 
	
684.7
	
 
	
 
	
 
	
698.7
	
 
	
 
	
 
	
712.4
	
 
	
 
	
 
	
723.9
	
 
	
 
	
 
	
721.0
	
 
	
 
	
 
	
702.8
	
 
	
 
	
 
	
682.3
	
 

	
Reinsurance Death Benefits
	
 
	
 
	
 
	
 
	
 
	
 
	
(366.7
	
)
	
 
	
 
	
(373.2
	
)
	
 
	
 
	
(387.1
	
)
	
 
	
 
	
(402.5
	
)
	
 
	
 
	
(418.7
	
)
	
 
	
 
	
(434.1
	
)
	
 
	
 
	
(447.5
	
)
	
 
	
 
	
(450.2
	
)
	
 
	
 
	
(441.2
	
)
	
 
	
 
	
(428.9
	
)

	
Cost of Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
(30.1
	
)
	
 
	
 
	
(32.1
	
)
	
 
	
 
	
(32.1
	
)
	
 
	
 
	
(31.5
	
)
	
 
	
 
	
(28.3
	
)
	
 
	
 
	
(25.2
	
)
	
 
	
 
	
(22.1
	
)
	
 
	
 
	
(19.1
	
)
	
 
	
 
	
(16.1
	
)
	
 
	
 
	
(13.2
	
)

	
Reserve Increase
	
 
	
 
	
 
	
 
	
 
	
 
	
190.2
	
 
	
 
	
 
	
(20.4
	
)
	
 
	
 
	
(59.0
	
)
	
 
	
 
	
(117.6
	
)
	
 
	
 
	
(142.4
	
)
	
 
	
 
	
(162.0
	
)
	
 
	
 
	
(192.7
	
)
	
 
	
 
	
(219.7
	
)
	
 
	
 
	
(246.8
	
)
	
 
	
 
	
(262.3
	
)

	
Expense Allowances
	
 
	
 
	
 
	
 
	
 
	
 
	
92.1
	
 
	
 
	
 
	
85.3
	
 
	
 
	
 
	
80.8
	
 
	
 
	
 
	
77.3
	
 
	
 
	
 
	
74.3
	
 
	
 
	
 
	
71.5
	
 
	
 
	
 
	
69.2
	
 
	
 
	
 
	
65.1
	
 
	
 
	
 
	
61.3
	
 
	
 
	
 
	
57.8
	
 

	
Other Expenses
	
 
	
 
	
 
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 

	
Commission
	
 
	
 
	
 
	
 
	
 
	
 
	
116.6
	
 
	
 
	
 
	
33.6
	
 
	
 
	
 
	
29.0
	
 
	
 
	
 
	
27.2
	
 
	
 
	
 
	
26.0
	
 
	
 
	
 
	
24.8
	
 
	
 
	
 
	
24.0
	
 
	
 
	
 
	
12.6
	
 
	
 
	
 
	
10.8
	
 
	
 
	
 
	
10.3
	
 

	
Total Benefits and Expenses
	
 
	
 
	
 
	
 
	
 
	
$
	
719.0
	
 
	
 
	
$
	
404.6
	
 
	
 
	
$
	
349.6
	
 
	
 
	
$
	
282.1
	
 
	
 
	
$
	
252.4
	
 
	
 
	
$
	
228.7
	
 
	
 
	
$
	
194.7
	
 
	
 
	
$
	
148.3
	
 
	
 
	
$
	
107.9
	
 
	
 
	
$
	
81.7
	
 

	
Total Pre-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
396.4
	
 
	
 
	
$
	
627.6
	
 
	
 
	
$
	
610.2
	
 
	
 
	
$
	
615.5
	
 
	
 
	
$
	
587.8
	
 
	
 
	
$
	
560.1
	
 
	
 
	
$
	
545.8
	
 
	
 
	
$
	
536.9
	
 
	
 
	
$
	
511.5
	
 
	
 
	
$
	
480.6
	
 

	
Federal Income Tax (35.0%)
	
 
	
 
	
 
	
 
	
 
	
 
	
(175.8
	
)
	
 
	
 
	
(200.5
	
)
	
 
	
 
	
(193.8
	
)
	
 
	
 
	
(196.5
	
)
	
 
	
 
	
(187.7
	
)
	
 
	
 
	
(178.9
	
)
	
 
	
 
	
(175.1
	
)
	
 
	
 
	
(173.6
	
)
	
 
	
 
	
(166.3
	
)
	
 
	
 
	
(157.6
	
)

	
After-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
220.6
	
 
	
 
	
$
	
427.0
	
 
	
 
	
$
	
416.5
	
 
	
 
	
$
	
419.0
	
 
	
 
	
$
	
400.1
	
 
	
 
	
$
	
381.2
	
 
	
 
	
$
	
370.7
	
 
	
 
	
$
	
363.3
	
 
	
 
	
$
	
345.1
	
 
	
 
	
$
	
323.0
	
 

	
Distributed Earnings (Target RBC 

Ratio=300%)
	
 
	
$
	
—
	
 
	
 
	
$
	
238.1
	
 
	
 
	
$
	
445.0
	
 
	
 
	
$
	
431.9
	
 
	
 
	
$
	
434.1
	
 
	
 
	
$
	
415.3
	
 
	
 
	
$
	
393.6
	
 
	
 
	
$
	
383.3
	
 
	
 
	
$
	
377.8
	
 
	
 
	
$
	
359.3
	
 
	
 
	
$
	
337.0
	
 

	
General Account Liabilities
	
 
	
$
	
3,443.7
	
 
	
 
	
$
	
3,635.0
	
 
	
 
	
$
	
3,615.4
	
 
	
 
	
$
	
3,556.5
	
 
	
 
	
$
	
3,438.6
	
 
	
 
	
$
	
3,294.6
	
 
	
 
	
$
	
3,130.8
	
 
	
 
	
$
	
2,936.1
	
 
	
 
	
$
	
2,717.3
	
 
	
 
	
$
	
2,471.8
	
 
	
 
	
$
	
2,208.8
	
 

	
Separate Account Liabilities
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
General Account Tax Reserve (Net of DAC)
	
 
	
 
	
2,642.4
	
 
	
 
	
 
	
2,685.6
	
 
	
 
	
 
	
2,712.5
	
 
	
 
	
 
	
2,706.6
	
 
	
 
	
 
	
2,667.5
	
 
	
 
	
 
	
2,597.0
	
 
	
 
	
 
	
2,503.3
	
 
	
 
	
 
	
2,373.6
	
 
	
 
	
 
	
2,215.1
	
 
	
 
	
 
	
2,025.2
	
 
	
 
	
 
	
1,812.0
	
 

	
External Reserve Financing (w/LOC @300bp)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
50% Inforce Internal Reserve Financing 

(w/LOC @300bp)
	
 
	
 
	
(345.8
	
)
	
 
	
 
	
(369.2
	
)
	
 
	
 
	
(369.1
	
)
	
 
	
 
	
(362.4
	
)
	
 
	
 
	
(325.2
	
)
	
 
	
 
	
(289.2
	
)
	
 
	
 
	
(254.1
	
)
	
 
	
 
	
(219.3
	
)
	
 
	
 
	
(185.0
	
)
	
 
	
 
	
(151.2
	
)
	
 
	
 
	
(119.3
	
)

	
Interest Maintenance Reserve
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
Capital, Surplus & AVR
	
 
	
 
	
303.0
	
 
	
 
	
 
	
285.4
	
 
	
 
	
 
	
267.5
	
 
	
 
	
 
	
252.0
	
 
	
 
	
 
	
236.9
	
 
	
 
	
 
	
221.7
	
 
	
 
	
 
	
209.3
	
 
	
 
	
 
	
196.7
	
 
	
 
	
 
	
182.3
	
 
	
 
	
 
	
168.2
	
 
	
 
	
 
	
154.3
	
 

	
NAIC RBC (Company Action Level)
	
 
	
 
	
101.0
	
 
	
 
	
 
	
95.1
	
 
	
 
	
 
	
89.2
	
 
	
 
	
 
	
84.0
	
 
	
 
	
 
	
79.0
	
 
	
 
	
 
	
73.9
	
 
	
 
	
 
	
69.8
	
 
	
 
	
 
	
65.6
	
 
	
 
	
 
	
60.8
	
 
	
 
	
 
	
56.1
	
 
	
 
	
 
	
51.4
	
 

	
RBC Ratio (Company Action Level)
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%

 

Note: Interest on Capital, Surplus, & AVR is based on a net earnings rate of 5.70%.

 

 

- 8 -

Milliman

 

Discount Rates

The actuarial appraisal values were developed using discount rates of 11%, 13%, and 15%. Table I illustrates the importance of the discount rate in the determination of the value of profits from the business.

New Business

New business is projected to grow based on Primerica’s business plan. Life insurance production is stated in terms of annualized issued premium. No new production is assumed after ten years.

 

	
Primerica Production Amounts
(annualized issued premium, in millions of $)
	
 

	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Growth Rate
	
 

	
Product Line
	
 
	
Year 1
	
 
	
 
	
Year 2
	
 
	
 
	
Year 3
	
 
	
 
	
Years 4-5
	
 
	
 
	
Years 6+
	
 

	
Life – U.S.
	
 
	
$
	
180.0
	
 
	
 
	
$
	
192.6
	
 
	
 
	
$
	
206.1
	
 
	
 
	
 
	
7
	
%
	
 
	
 
	
8
	
%

 

Of the U.S. life production, 7.5% is assumed to be in National Benefit Life (NBL), PLIC’s New York subsidiary.

Reserve Financing

Primerica Life reserves for all term business using segmented reserves, both before and after the introduction of Guideline XXX in 2000. The development of the ceding commission reflects reserve financing based on the following assumptions:

	
 
	
•
	
For the business in PLIC, $1 billion of reserve financing is assumed; spread pro-rata over the excess reserves on the inforce block of business.

	
 
	
•
	
The amount of excess reserve is assumed to be the statutory reserve less the greater of the economic reserve or zero, for the block in total. Economic reserves are gross premium reserves over the level period only, and are defined in more detail in Section III. A summary of the reserves is shown below.

- 9 -

Milliman

 

 

	
Primerica Life 
Excess Reserve Summary by Issue Year
As of June 30, 2009
(in millions)
	
 

	
 
	
 

	
Issue Year
	
 
	
Statutory Reserve
	
 
	
 
	
Economic Reserve
	
 

	
2009
	
 
	
$
	
99
	
 
	
 
	
$
	
(170
	
)

	
2008
	
 
	
 
	
245
	
 
	
 
	
 
	
(301
	
)

	
2007
	
 
	
 
	
275
	
 
	
 
	
 
	
(271
	
)

	
2006
	
 
	
 
	
199
	
 
	
 
	
 
	
(200
	
)

	
2005
	
 
	
 
	
218
	
 
	
 
	
 
	
(154
	
)

	
2004
	
 
	
 
	
274
	
 
	
 
	
 
	
(110
	
)

	
2003
	
 
	
 
	
255
	
 
	
 
	
 
	
(86
	
)

	
2002
	
 
	
 
	
240
	
 
	
 
	
 
	
(58
	
)

	
2001
	
 
	
 
	
253
	
 
	
 
	
 
	
(38
	
)

	
2000
	
 
	
 
	
239
	
 
	
 
	
 
	
15
	
 

	
1999
	
 
	
 
	
154
	
 
	
 
	
 
	
13
	
 

	
1998
	
 
	
 
	
136
	
 
	
 
	
 
	
30
	
 

	
1997
	
 
	
 
	
138
	
 
	
 
	
 
	
27
	
 

	
1996
	
 
	
 
	
155
	
 
	
 
	
 
	
34
	
 

	
1995
	
 
	
 
	
134
	
 
	
 
	
 
	
29
	
 

	
1994
	
 
	
 
	
111
	
 
	
 
	
 
	
10
	
 

	
1993
	
 
	
 
	
114
	
 
	
 
	
 
	
7
	
 

	
1992
	
 
	
 
	
100
	
 
	
 
	
 
	
14
	
 

	
1991
	
 
	
 
	
73
	
 
	
 
	
 
	
15
	
 

	
1990
	
 
	
 
	
45
	
 
	
 
	
 
	
10
	
 

	
1989
	
 
	
 
	
(5
	
)
	
 
	
 
	
(3
	
)

	
Total
	
 
	
$
	
3,451
	
 
	
 
	
$
	
(1,188
	
)

 

	
•
	
The cost of financing is assumed to be 300 bp of amounts outstanding.

	
•
	
Tax reserves are projected based on the Company’s current methodology.

The projections of the 20% of the inforce business remaining in PLIC, along with the new business, does not reflect any external reserve financing.

General Expense and Commissions

The unit expense assumptions were developed based on a combination of Primerica’s internal pricing allowables for acquisition costs and target allowables for maintenance. The difference between Primerica’s budgeted expenses and the unit cost allowable of $29 million was reflected as an unallocated expense and held constant for a period consistent with new business production.

Primerica does not perform a detailed allocation of shared expenses to the non-life product lines. Therefore, a significant portion of the unallocated expense represents shared expenses that support other business segments. In addition, the unallocated expense includes amounts that provide shared support for Primerica’s distribution system, for both life and non-life businesses.

PLIC has cost-sharing agreements and management agreements in place with its non-life affiliates. For purposes of a PLIC-only projection, excess experience is reduced by a net $12 million for these agreements.

- 10 -

Milliman

 

The projections reflect commission on a paid basis. Under the reinsurance treaty, PrimeRe will reimburse PLIC for commissions on an earned basis. In the first projection year, this results in an increase in the commission reimbursement by about $61.6 million for 80% of the business, which is reflected as an aggregate adjustment in Table I, and the ten-year projections. Subsequent years are not impacted.

Statutory Surplus Levels. Cost of Required Capital, and Risk Based Capital

The approach used to project yearly profits underlying the present values reflects an assumption that all future earnings from inforce and new business are paid out as reported. Included in this calculation is provision for the minimum level of statutory net worth required to continue favorable regulatory and rating agency treatment. Tables II and III provide a projection of capital, surplus, and AVR levels assuming all statutory earnings are paid out in excess of the funds required to maintain a 300% NAIC RBC (Risk Based Capital - Company Action Level) ratio in Primerica.

The cost of retaining capital to support the ongoing insurance operations will depend on a) the level of capital believed necessary for the risks inherent in the insurance operations of Primerica and to achieve desired ratings from various rating agencies; and b) the differential between the rate of return realized on retained capital and a buyer’s desired rate of return for an acquisition. The cost of capital based on maintaining 300% NAIC RBC is provided for in Table I. The detailed factors used to develop projected RBC are summarized in Appendix A.

Federal Income Taxes

The actuarial appraisal values summarized in Table I have been adjusted for the effect of Federal income taxes, assuming a 35% tax rate. In evaluating the potential effect of taxes on value, one should consider:

	
 
	
a)
	
Differences between tax and statutory reserves;

	
 
	
b)
	
Impact of the D AC proxy tax; and

	
 
	
c)
	
Other differences between tax and statutory amounts.

For purposes of this analysis, we have projected taxes as 35% of statutory income, adjusted as described below.

	
 
	
•
	
The statutory reserve exceeds the tax reserve as of June 30, 2009 by approximately $890 million. The difference represents reserves that will eventually flow into statutory income but not taxable income.

	
 
	
•
	
The impact of Deferred Acquisition Cost (DAC) proxy tax is based on the establishment of an asset for purposes of calculating taxable income equal to 7.70% of life insurance or 1.75% of annuity non-qualified direct premiums and reinsurance net cashflow. The resulting tax asset is assumed to be amortized over ten years. We also projected the amortization of the June 30, 2009 tax DAC balance of $635 million.

The 80% reinsurance transaction will be under an indemnity coinsurance arrangement. Under an indemnity coinsurance transaction, a reinsurer would receive a deduction of the tax-basis ceding commission. The Tax Benefit on Reinsurance in Table I is developed as follows:

	
 
	
1)
	
DAC proxy tax is determined based on net consideration, including the initial net cash transfer, instead of premium

	
 
	
2)
	
The excess ceding commission (on a tax basis) is assumed to be deductible immediately.

- 11 -

Milliman

 

Reinsurance Between PLIC and Prime Re

The ten-year projections for PLIC and Prime Re reflect the following anticipated reinsurance terms:

	
 
	
1)
	
PLIC coinsures 80% of the inforce Term business to Prime Re.

	
 
	
2)
	
PLIC coinsures an additional 10% of the inforce Term business to Prime Re under a second treaty, which includes an experience refund. The experience refund is defined as:

 

	
Experience Refund
	
 
	
= Premiums — Claims — Expense Allowances

	
 
	
 
	
 

	
 
	
 
	
- Increase in Economic Reserve (net of interest on economic reserve)

	
 
	
 
	
 

	
 
	
 
	
- Finance charge

 

The Finance charge is assumed to be 3% of excess reserves (statutory reserve — economic reserve).

In addition, the following terms are reflected for EOT conversions and renewals:

	
 
	
•
	
EOT conversions beginning in year 8 of the projection are assumed to be written in PLIC

	
 
	
•
	
Similarly, PLIC has the right to recapture new EOT renewals beginning in year 8, and the projections assume PLIC will exercise this option.

Sensitivity Analysis

We have developed values and projections under the following changes in assumptions:

	
 
	
1)
	
110% of baseline mortality

	
 
	
2)
	
120% of baseline lapses (other than shock lapse)

	
 
	
3)
	
400% of baseline default rates on assets

	
 
	
4)
	
New business production growth reduced to 3% in all years.

Results are summarized below.

 

	
PLIC Inforce Business at 80%

Sensitivity Analysis

(after-tax, cost of capital, before reinsurance tax benefit)

	
 

	
Scenario
	
 
	
 
	
11%
	
 
	
 
	
 
	
13%
	
 
	
 
	
 
	
15%
	
 

	
Baseline
	
 
	
$
	
2,454
	
 
	
 
	
$
	
2,236
	
 
	
 
	
$
	
2,057
	
 

	
1) 110% Mortality
	
 
	
 
	
2,306
	
 
	
 
	
 
	
2,106
	
 
	
 
	
 
	
1,940
	
 

	
2) 120% Lapse
	
 
	
 
	
2,404
	
 
	
 
	
 
	
2,203
	
 
	
 
	
 
	
2,037
	
 

	
3) 400% Defaults
	
 
	
 
	
2,369
	
 
	
 
	
 
	
2,159
	
 
	
 
	
 
	
1,987
	
 

 

The ten-year projections are included on the following pages.

 

 

- 12 -

Milliman

 

 

	
Primerica Life: 110% Mortality
Line of Business Statutory Projection
(post-tax; in millions of dollars)
	
 

	
 
	
 

	
Year Ending June 30,
	
 
	
2009
	
 
	
 
	
2010
	
 
	
 
	
2011
	
 
	
2012
	
 
	
 
	
2013
	
 
	
 
	
2014
	
 
	
 
	
2015
	
 
	
 
	
2016
	
 
	
 
	
2017
	
 
	
 
	
2018
	
 
	
 
	
2019
	
 

	
Existing Business at 06/30/2009
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Primerica - Net (Before New Conversions)
	
 
	
 
	
 
	
 
	
 
	
$
	
203.3
	
 
	
 
	
$
	
136.4
	
 
	
$
	
131.6
	
 
	
 
	
$
	
127.8
	
 
	
 
	
$
	
124.1
	
 
	
 
	
$
	
119.2
	
 
	
 
	
$
	
117.3
	
 
	
 
	
$
	
119.0
	
 
	
 
	
$
	
123.7
	
 
	
 
	
$
	
125.9
	
 

	
Primerica New Conversions - Net
	
 
	
 
	
 
	
 
	
 
	
 
	
(42.5
	
)
	
 
	
(0.5)
	
 
	
 
	
(1.2
	
)
	
 
	
 
	
(3.2
	
)
	
 
	
 
	
(4.9
	
)
	
 
	
 
	
(5.6
	
)
	
 
	
 
	
(6.1
	
)
	
 
	
 
	
(6.5
	
)
	
 
	
 
	
(6.3
	
)
	
 
	
 
	
(6.2
	
)

	
Miscellaneous Primerica
	
 
	
 
	
 
	
 
	
 
	
 
	
13.1
	
 
	
 
	
12.9
	
 
	
 
	
12.8
	
 
	
 
	
 
	
12.8
	
 
	
 
	
 
	
12.9
	
 
	
 
	
 
	
13.0
	
 
	
 
	
 
	
13.0
	
 
	
 
	
 
	
13.0
	
 
	
 
	
 
	
13.0
	
 
	
 
	
 
	
12.9
	
 

	
Total Existing Business
	
 
	
 
	
 
	
 
	
 
	
$
	
173.9
	
 
	
 
	
$
	
148.8
	
 
	
$
	
143.2
	
 
	
 
	
$
	
137.5
	
 
	
 
	
$
	
132.1
	
 
	
 
	
$
	
126.6
	
 
	
 
	
$
	
124.2
	
 
	
 
	
$
	
125.5
	
 
	
 
	
$
	
130.3
	
 
	
 
	
$
	
132.6
	
 

	
Ten Years of New Business from 06/30/2009
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Traditional Life
	
 
	
 
	
 
	
 
	
 
	
$
	
(201.1
	
)
	
 
	
$
	
(181.1
	
)
	
$
	
(158.2
	
)
	
 
	
$
	
(136.1
	
)
	
 
	
$
	
(112.0
	
)
	
 
	
$
	
(89.1
	
)
	
 
	
$
	
(63.8
	
)
	
 
	
$
	
(34.9
	
)
	
 
	
$
	
(2.6
	
)
	
 
	
$
	
33.1
	
 

	
Primerica Waiver of Premium
	
 
	
 
	
 
	
 
	
 
	
 
	
0.6
	
 
	
 
	
1.5
	
 
	
 
	
2.3
	
 
	
 
	
 
	
3.1
	
 
	
 
	
 
	
3.9
	
 
	
 
	
 
	
4.8
	
 
	
 
	
 
	
5.7
	
 
	
 
	
 
	
6.6
	
 
	
 
	
 
	
7.6
	
 
	
 
	
 
	
8.7
	
 

	
Primerica Retained Asset Account
	
 
	
 
	
 
	
 
	
 
	
 
	
0.2
	
 
	
 
	
0.5
	
 
	
 
	
0.9
	
 
	
 
	
 
	
1.4
	
 
	
 
	
 
	
1.9
	
 
	
 
	
 
	
2.5
	
 
	
 
	
 
	
3.1
	
 
	
 
	
 
	
3.8
	
 
	
 
	
 
	
4.6
	
 
	
 
	
 
	
5.5
	
 

	
Total New Business
	
 
	
 
	
 
	
 
	
 
	
$
	
(200.4
	
)
	
 
	
$
	
(179.1
	
)
	
$
	
(155.0
	
)
	
 
	
$
	
(131.6
	
)
	
 
	
$
	
(106.2
	
)
	
 
	
$
	
(81.9
	
)
	
 
	
$
	
(55.1
	
)
	
 
	
$
	
(24.5
	
)
	
 
	
$
	
9.6
	
 
	
 
	
$
	
47.3
	
 

	
Unallocated Expense
	
 
	
 
	
 
	
 
	
 
	
 
	
(16.7
	
)
	
 
	
(16.7)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)

	
Change in Internal Reserve Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
23.3
	
 
	
 
	
(0.2)
	
 
	
 
	
(11.8
	
)
	
 
	
 
	
(38.5
	
)
	
 
	
 
	
(37.2
	
)
	
 
	
 
	
(35.2
	
)
	
 
	
 
	
(34.8
	
)
	
 
	
 
	
(34.3
	
)
	
 
	
 
	
(33.5
	
)
	
 
	
 
	
(31.4
	
)

	
Interest Cost on Internal Reserve Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
(30.1
	
)
	
 
	
(32.1)
	
 
	
 
	
(32.1
	
)
	
 
	
 
	
(31.1
	
)
	
 
	
 
	
(27.7
	
)
	
 
	
 
	
(24.5
	
)
	
 
	
 
	
(214
	
)
	
 
	
 
	
(18.4
	
)
	
 
	
 
	
(15.4
	
)
	
 
	
 
	
(12.5
	
)

	
Interest on Capital, Surplus & AVR
	
 
	
 
	
 
	
 
	
 
	
 
	
21.9
	
 
	
 
	
20.9
	
 
	
 
	
18.3
	
 
	
 
	
 
	
15.9
	
 
	
 
	
 
	
12.9
	
 
	
 
	
 
	
11.2
	
 
	
 
	
 
	
10.8
	
 
	
 
	
 
	
11.9
	
 
	
 
	
 
	
15.0
	
 
	
 
	
 
	
20.9
	
 

	
Total Pre-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
(28.1
	
)
	
 
	
$
	
(58.3
	
)
	
$
	
(54.1
	
)
	
 
	
$
	
(64.5
	
)
	
 
	
$
	
(42.7
	
)
	
 
	
$
	
(20.4
	
)
	
 
	
$
	
7.0
	
 
	
 
	
$
	
43.5
	
 
	
 
	
$
	
89.3
	
 
	
 
	
$
	
140.1
	
 

	
Federal Income Tax (35.0%)
	
 
	
 
	
 
	
 
	
 
	
 
	
0.0
	
 
	
 
	
(0.0
	
) 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
(46.1
	
)

	
NBL Distributed Earnings
	
 
	
 
	
 
	
 
	
 
	
 
	
11.3
	
 
	
 
	
12.2
	
 
	
 
	
12.2
	
 
	
 
	
 
	
12.3
	
 
	
 
	
 
	
12.5
	
 
	
 
	
 
	
12.3
	
 
	
 
	
 
	
12.3
	
 
	
 
	
 
	
12.2
	
 
	
 
	
 
	
12.8
	
 
	
 
	
 
	
13.5
	
 

	
After-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
 
	
(16.8
	
)
	
 
	
(46.1)
	
 
	
 
	
(41.9
	
)
	
 
	
 
	
(52.2
	
)
	
 
	
 
	
(30.2
	
)
	
 
	
 
	
(8.1
	
)
	
 
	
 
	
19.3
	
 
	
 
	
 
	
55.7
	
 
	
 
	
 
	
102.1
	
 
	
 
	
 
	
107.6
	
 

	
Distributed Earnings (Target RBC Ratio=300%)
	
 
	
$
	
20.0
	
 
	
 
	
$
	
0.0
	
 
	
 
	
$
	
0.0
	
 
	
$
	
0.0
	
 
	
 
	
$
	
0.0
	
 
	
 
	
$
	
0.0
	
 
	
 
	
$
	
0.0
	
 
	
 
	
$
	
0.0
	
 
	
 
	
$
	
0.0
	
 
	
 
	
$
	
0.0
	
 
	
 
	
$
	
0.0
	
 

	
General Account Liabilities
	
 
	
$
	
673.7
	
 
	
 
	
$
	
709.2
	
 
	
 
	
$
	
759.0
	
 
	
$
	
860.6
	
 
	
 
	
$
	
1,007.5
	
 
	
 
	
$
	
1,194.6
	
 
	
 
	
$
	
1,419.9
	
 
	
 
	
$
	
1,679.0
	
 
	
 
	
$
	
1,968.9
	
 
	
 
	
$
	
2,289.9
	
 
	
 
	
$2,638.2
	
 

	
Separate Account Liabilities
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
0.0
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 

	
General Account Tax Reserve (Net of DAC)
	
 
	
 
	
(50.7
	
)
	
 
	
 
	
20.4
	
 
	
 
	
116.7
	
 
	
 
	
258.0
	
 
	
 
	
 
	
435.4
	
 
	
 
	
 
	
641.9
	
 
	
 
	
 
	
873.1
	
 
	
 
	
 
	
1,123.2
	
 
	
 
	
 
	
1,388.0
	
 
	
 
	
 
	
1,666.2
	
 
	
 
	
 
	
1,955.0
	
 

	
External Reserve Financing (w/LOC @300bp)
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
0.0
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 

	
50% Inforce Internal Reserve Financing (w/LOC @300bp)
	
 
	
 
	
345.8
	
 
	
 
	
 
	
369.1
	
 
	
 
	
368.9
	
 
	
 
	
357.1
	
 
	
 
	
 
	
318.6
	
 
	
 
	
 
	
281.5
	
 
	
 
	
 
	
246.3
	
 
	
 
	
 
	
211.5
	
 
	
 
	
 
	
177.3
	
 
	
 
	
 
	
143.7
	
 
	
 
	
 
	
112.3
	
 

	
Interest Maintenance Reserve
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
0.0
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 

	
Capital, Surplus & AVR Excluding NBL
	
 
	
 
	
384.0
	
 
	
 
	
 
	
367.2
	
 
	
 
	
321.1
	
 
	
 
	
279.2
	
 
	
 
	
 
	
227.0
	
 
	
 
	
 
	
196.8
	
 
	
 
	
 
	
188.7
	
 
	
 
	
 
	
208.1
	
 
	
 
	
 
	
263.8
	
 
	
 
	
 
	
365.9
	
 
	
 
	
 
	
473.5
	
 

	
NBL Carrying Value
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
150.0
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 

	
Capital, Surplus & AVR Including NBL
	
 
	
 
	
534.0
	
 
	
 
	
 
	
517.2
	
 
	
 
	
471.1
	
 
	
 
	
429.2
	
 
	
 
	
 
	
377.0
	
 
	
 
	
 
	
346.8
	
 
	
 
	
 
	
338.7
	
 
	
 
	
 
	
358.1
	
 
	
 
	
 
	
413.8
	
 
	
 
	
 
	
515.9
	
 
	
 
	
 
	
623.5
	
 

	
NAIC RBC (Company Action Level)
	
 
	
 
	
90.0
	
 
	
 
	
 
	
93.6
	
 
	
 
	
97.5
	
 
	
 
	
101.9
	
 
	
 
	
 
	
107.1
	
 
	
 
	
 
	
113.0
	
 
	
 
	
 
	
119.4
	
 
	
 
	
 
	
126.7
	
 
	
 
	
 
	
135.0
	
 
	
 
	
 
	
144.2
	
 
	
 
	
 
	
154.6
	
 

	
RBC Ratio (Company Action Level)
	
 
	
 
	
593.2
	
%
	
 
	
 
	
552.3
	
%
	
 
	
483.2%
	
 
	
 
	
421.4
	
%
	
 
	
 
	
352.0
	
%
	
 
	
 
	
306.8
	
%
	
 
	
 
	
283.6
	
%
	
 
	
 
	
282.6
	
%
	
 
	
 
	
306.6
	
%
	
 
	
 
	
357.7
	
%
	
 
	
 
	
403.2
	
%

 

Note: Interest on Capital, Surplus, & AVR is based on a net earnings rate of 5.70%.

- 13 -

Milliman

 

 

	
Primerica Life: 110% Mortality 
Line of Business Statutory Projection
(post-tax; in millions of dollars)
	
 

	
 
	
 
	
 
	
 

	
Year Ending June 30,
	
 
	
2009
	
 
	
 
	
2010
	
 
	
 
	
2011
	
 
	
 
	
2012
	
 
	
 
	
2013
	
 
	
 
	
2014
	
 
	
 
	
2015
	
 
	
 
	
2016
	
 
	
 
	
2017
	
 
	
 
	
2018
	
 
	
 
	
2019
	
 

	
Existing and New Business
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Gross Premium Income
	
 
	
 
	
 
	
 
	
 
	
$
	
422.5
	
 
	
 
	
$
	
546.0
	
 
	
 
	
$
	
665.7
	
 
	
 
	
$
	
786.6
	
 
	
 
	
$
	
910.6
	
 
	
 
	
$
	
1,039.7
	
 
	
 
	
$
	
1,175.8
	
 
	
 
	
$
	
1,330.2
	
 
	
 
	
$
	
1,502.9
	
 
	
 
	
$
	
1,683.3
	
 

	
Reinsurance Premiums (Net of Allowances)
	
 
	
 
	
 
	
 
	
 
	
 
	
(118.0
	
)
	
 
	
 
	
(142.5
	
)
	
 
	
 
	
(171.6
	
)
	
 
	
 
	
(204.8
	
)
	
 
	
 
	
(242.3
	
)
	
 
	
 
	
(282.9
	
)
	
 
	
 
	
(327.7
	
)
	
 
	
 
	
(383.9
	
)
	
 
	
 
	
(445.8
	
)
	
 
	
 
	
(514.5
	
)

	
Allowances From PrimeRe
	
 
	
 
	
 
	
 
	
 
	
 
	
92.1
	
 
	
 
	
 
	
85.3
	
 
	
 
	
 
	
80.7
	
 
	
 
	
 
	
77.2
	
 
	
 
	
 
	
74.2
	
 
	
 
	
 
	
71.4
	
 
	
 
	
 
	
69.0
	
 
	
 
	
665
	
 
	
 
	
 
	
63.5
	
 
	
 
	
 
	
60.6
	
 

	
Investment Income
	
 
	
 
	
 
	
 
	
 
	
 
	
79.8
	
 
	
 
	
 
	
83.3
	
 
	
 
	
 
	
85.1
	
 
	
 
	
 
	
89.7
	
 
	
 
	
 
	
95.9
	
 
	
 
	
 
	
105.3
	
 
	
 
	
 
	
117.9
	
 
	
 
	
 
	
133.9
	
 
	
 
	
 
	
153.6
	
 
	
 
	
 
	
177.7
	
 

	
Total Income
	
 
	
 
	
 
	
 
	
 
	
$
	
476.4
	
 
	
 
	
$
	
572.1
	
 
	
 
	
$
	
659.9
	
 
	
 
	
$
	
748.6
	
 
	
 
	
$
	
838.3
	
 
	
 
	
$
	
933.4
	
 
	
 
	
$
	
1,035.0
	
 
	
 
	
$
	
1,146.7
	
 
	
 
	
$
	
1,274.3
	
 
	
 
	
$
	
1,407.0
	
 

	
Surrender, Health and Other Benefits
	
 
	
 
	
 
	
 
	
 
	
$
	
6.6
	
 
	
 
	
$
	
12.7
	
 
	
 
	
$
	
8.0
	
 
	
 
	
$
	
7.0
	
 
	
 
	
$
	
7.3
	
 
	
 
	
$
	
8.1
	
 
	
 
	
$
	
9.7
	
 
	
 
	
$
	
11.2
	
 
	
 
	
$
	
13.4
	
 
	
 
	
$
	
15.5
	
 

	
Direct Death Benefits
	
 
	
 
	
 
	
 
	
 
	
 
	
200.3
	
 
	
 
	
 
	
227.6
	
 
	
 
	
 
	
259.3
	
 
	
 
	
 
	
296.0
	
 
	
 
	
 
	
337.0
	
 
	
 
	
 
	
382.5
	
 
	
 
	
 
	
432.4
	
 
	
 
	
 
	
491.5
	
 
	
 
	
 
	
560.6
	
 
	
 
	
 
	
636.6
	
 

	
Reinsurance Death Benefits
	
 
	
 
	
 
	
 
	
 
	
 
	
(114.3
	
)
	
 
	
 
	
(139.0
	
)
	
 
	
 
	
(167.5
	
)
	
 
	
 
	
(200.4
	
)
	
 
	
 
	
(237.3
	
)
	
 
	
 
	
(278.0
	
)
	
 
	
 
	
(322.6
	
)
	
 
	
 
	
(375.5
	
)
	
 
	
 
	
(437.3
	
)
	
 
	
 
	
(505.9
	
)

	
Cost of Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
30.1
	
 
	
 
	
 
	
32.1
	
 
	
 
	
 
	
32.1
	
 
	
 
	
 
	
31.1
	
 
	
 
	
 
	
27.7
	
 
	
 
	
 
	
24.5
	
 
	
 
	
 
	
21.4
	
 
	
 
	
 
	
18.4
	
 
	
 
	
 
	
15.4
	
 
	
 
	
 
	
12.5
	
 

	
Reserve Increase
	
 
	
 
	
 
	
 
	
 
	
 
	
32.8
	
 
	
 
	
 
	
47.2
	
 
	
 
	
 
	
106.8
	
 
	
 
	
 
	
175.3
	
 
	
 
	
 
	
211.1
	
 
	
 
	
 
	
244.7
	
 
	
 
	
 
	
274.3
	
 
	
 
	
 
	
300.0
	
 
	
 
	
 
	
328.0
	
 
	
 
	
 
	
352.5
	
 

	
Expense (Other Than Premium Tax) (Incl Unalloc)
	
 
	
 
	
 
	
 
	
 
	
 
	
158.2
	
 
	
 
	
 
	
162.4
	
 
	
 
	
 
	
168.6
	
 
	
 
	
 
	
176.1
	
 
	
 
	
 
	
184.3
	
 
	
 
	
 
	
194.1
	
 
	
 
	
 
	
205.2
	
 
	
 
	
 
	
217.2
	
 
	
 
	
 
	
230.1
	
 
	
 
	
 
	
243.9
	
 

	
Premium Tax
	
 
	
 
	
 
	
 
	
 
	
 
	
35.1
	
 
	
 
	
 
	
36.0
	
 
	
 
	
 
	
37.3
	
 
	
 
	
 
	
39.0
	
 
	
 
	
 
	
40.8
	
 
	
 
	
 
	
42.8
	
 
	
 
	
 
	
45.0
	
 
	
 
	
 
	
47.4
	
 
	
 
	
 
	
50.1
	
 
	
 
	
 
	
53.0
	
 

	
Commission
	
 
	
 
	
 
	
 
	
 
	
 
	
155.6
	
 
	
 
	
 
	
251.4
	
 
	
 
	
 
	
269.4
	
 
	
 
	
 
	
289.1
	
 
	
 
	
 
	
310.1
	
 
	
 
	
 
	
335.2
	
 
	
 
	
 
	
362.7
	
 
	
 
	
 
	
392.9
	
 
	
 
	
 
	
424.7
	
 
	
 
	
 
	
458.9
	
 

	
Total Benefits and Expenses
	
 
	
 
	
 
	
 
	
 
	
$
	
504.4
	
 
	
 
	
$
	
630.4
	
 
	
 
	
$
	
714.0
	
 
	
 
	
$
	
813.1
	
 
	
 
	
$881.0
	
 
	
 
	
$
	
953.8
	
 
	
 
	
$
	
1,028.0
	
 
	
 
	
$
	
1,103.2
	
 
	
 
	
$
	
1,185.0
	
 
	
 
	
$
	
1,266.9
	
 

	
Total Pre-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
(28.1
	
)
	
 
	
$
	
(58.3
	
)
	
 
	
$
	
(54.1
	
)
	
 
	
$
	
(64.5
	
)
	
 
	
$
	
(42.7
	
)
	
 
	
$
	
(20.4
	
)
	
 
	
$
	
7.0
	
 
	
 
	
$
	
43.5
	
 
	
 
	
$
	
89.3
	
 
	
 
	
$
	
140.1
	
 

	
Federal Income Tax (35.0%)
	
 
	
 
	
 
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
(0.0
	
) 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
(46.1
	
)

	
NBL Distributed Earnings
	
 
	
 
	
 
	
 
	
 
	
 
	
11.3
	
 
	
 
	
 
	
12.2
	
 
	
 
	
 
	
12.2
	
 
	
 
	
 
	
12.3
	
 
	
 
	
12.5
	
 
	
 
	
 
	
12.3
	
 
	
 
	
 
	
12.3
	
 
	
 
	
 
	
12.2
	
 
	
 
	
 
	
12.8
	
 
	
 
	
 
	
13.5
	
 

	
After-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
(16.8
	
)
	
 
	
$
	
(46.1
	
)
	
 
	
$
	
(41.9
	
)
	
 
	
$
	
(52.2
	
)
	
 
	
$
	
(30.2
	
)
	
 
	
$
	
(8.1
	
)
	
 
	
$
	
19.3
	
 
	
 
	
$
	
55.7
	
 
	
 
	
$
	
102.1
	
 
	
 
	
$
	
107.6
	
 

	
Distributed Earnings (Target RBC Ratio=300%)
	
 
	
$
	
20.0
	
 
	
 
	
$
	
0.0
	
 
	
 
	
$
	
0.0
	
 
	
 
	
$
	
0.0
	
 
	
 
	
$
	
0.0
	
 
	
 
	
$
	
0.0
	
 
	
 
	
$
	
0.0
	
 
	
 
	
$
	
0.0
	
 
	
 
	
$
	
0.0
	
 
	
 
	
$
	
0.0
	
 
	
 
	
$
	
0.0
	
 

	
General Account Liabilities
	
 
	
$
	
673.7
	
 
	
 
	
$
	
709.2
	
 
	
 
	
$
	
759.0
	
 
	
 
	
$
	
860.6
	
 
	
 
	
$
	
1,007.5
	
 
	
 
	
$
	
1,194.6
	
 
	
 
	
$
	
1,419.9
	
 
	
 
	
$
	
1,679.0
	
 
	
 
	
$
	
1,968.9
	
 
	
 
	
$
	
2,289.9
	
 
	
 
	
$
	
2,638.2
	
 

	
Separate Account Liabilities
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 

	
General Account Tax Reserve (Net of DAC)
	
 
	
 
	
(50.7
	
)
	
 
	
 
	
20.4
	
 
	
 
	
 
	
116.7
	
 
	
 
	
 
	
258.0
	
 
	
 
	
 
	
435.4
	
 
	
 
	
 
	
641.9
	
 
	
 
	
 
	
873.1
	
 
	
 
	
 
	
1,123.2
	
 
	
 
	
 
	
1,388.0
	
 
	
 
	
 
	
1,666.2
	
 
	
 
	
 
	
1,955.0
	
 

	
External Reserve Financing (w/LOC @300bp)
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 

	
50% Inforce Internal Reserve Financing (w/LOC @300bp)
	
 
	
 
	
345.8
	
 
	
 
	
 
	
369.1
	
 
	
 
	
 
	
368.9
	
 
	
 
	
 
	
357.1
	
 
	
 
	
 
	
318.6
	
 
	
 
	
 
	
281.5
	
 
	
 
	
 
	
246.3
	
 
	
 
	
 
	
211.5
	
 
	
 
	
 
	
177.3
	
 
	
 
	
 
	
143.7
	
 
	
 
	
 
	
112.3
	
 

	
Interest Maintenance Reserve
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 

	
Capital, Surplus & AVR
	
 
	
 
	
534.0
	
 
	
 
	
 
	
517.2
	
 
	
 
	
 
	
471.1
	
 
	
 
	
 
	
429.2
	
 
	
 
	
 
	
377.0
	
 
	
 
	
 
	
346.8
	
 
	
 
	
 
	
338.7
	
 
	
 
	
 
	
358.1
	
 
	
 
	
 
	
413.8
	
 
	
 
	
 
	
515.9
	
 
	
 
	
 
	
623.5
	
 

	
NAIC RBC (Company Action Level)
	
 
	
 
	
90.0
	
 
	
 
	
 
	
93.6
	
 
	
 
	
 
	
97.5
	
 
	
 
	
 
	
101.9
	
 
	
 
	
 
	
107.1
	
 
	
 
	
 
	
113.0
	
 
	
 
	
 
	
119.4
	
 
	
 
	
 
	
126.7
	
 
	
 
	
 
	
135.0
	
 
	
 
	
 
	
144.2
	
 
	
 
	
 
	
154.6
	
 

	
RBC Ratio (Company Action Level)
	
 
	
 
	
593.2
	
%
	
 
	
 
	
552.3
	
%
	
 
	
 
	
483.2
	
%
	
 
	
 
	
421.4
	
%
	
 
	
 
	
352.0
	
%
	
 
	
 
	
306.8
	
%
	
 
	
 
	
283.6
	
%
	
 
	
 
	
282.6
	
%
	
 
	
 
	
306.6
	
%
	
 
	
 
	
357.7
	
%
	
 
	
 
	
403.2
	
%

 

Note: Interest on Capital, Surplus, & AVR is based on a net earnings rate of 5.70%.

 

 

- 14 -

Milliman

 

	
PrimeRe: 110% Mortality

Line of Business Statutory Projection

(post-tax; in millions of dollars)
	
 

	
 
	
 

	
Year Ending June 30,
	
 
	
2009
	
 
	
 
	
2010
	
 
	
 
	
2011
	
 
	
 
	
2012
	
 
	
 
	
2013
	
 
	
 
	
2014
	
 
	
 
	
2015
	
 
	
 
	
2016
	
 
	
 
	
2017
	
 
	
 
	
2018
	
 
	
 
	
2019
	
 

	
Existing Business at 06/30/2009
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Term — Net (Before New Conversions)
	
 
	
 
	
 
	
 
	
 
	
$
	
505.4
	
 
	
 
	
$
	
545.7
	
 
	
 
	
$
	
526.3
	
 
	
 
	
$
	
511.2
	
 
	
 
	
$
	
496.4
	
 
	
 
	
$
	
476.9
	
 
	
 
	
$
	
469.3
	
 
	
 
	
$
	
458.7
	
 
	
 
	
$
	
436.7
	
 
	
 
	
$
	
406.2
	
 

	
Term — New Conversions - Net
	
 
	
 
	
 
	
 
	
 
	
 
	
(170.1
	
)
	
 
	
 
	
(1.9
	
)
	
 
	
 
	
(4.6
	
)
	
 
	
 
	
(12.7
	
)
	
 
	
 
	
(19.6
	
)
	
 
	
 
	
(22.4
	
)
	
 
	
 
	
(24.5
	
)
	
 
	
 
	
(26.1
	
)
	
 
	
 
	
(25.4
	
)
	
 
	
 
	
(24.9
	
)

	
Canada Segregated Funds
	
 
	
 
	
 
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
Miscellaneous
	
 
	
 
	
 
	
 
	
 
	
 
	
12.3
	
 
	
 
	
 
	
11.4
	
 
	
 
	
 
	
10.7
	
 
	
 
	
 
	
10.1
	
 
	
 
	
 
	
9.5
	
 
	
 
	
 
	
9.0
	
 
	
 
	
 
	
8.5
	
 
	
 
	
 
	
7.9
	
 
	
 
	
 
	
7.4
	
 
	
 
	
 
	
6.9
	
 

	
Total Existing Business
	
 
	
 
	
 
	
 
	
 
	
$
	
347.6
	
 
	
 
	
$
	
555.1
	
 
	
 
	
$
	
532.4
	
 
	
 
	
$
	
508.7
	
 
	
 
	
$
	
486.3
	
 
	
 
	
$
	
463.5
	
 
	
 
	
$
	
453.2
	
 
	
 
	
$
	
440.5
	
 
	
 
	
$
	
418.8
	
 
	
 
	
$
	
388.2
	
 

	
Ten Years of New Business from 06/30/2009
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
N/A
	
 
	
 
	
 
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 

	
Total New Business
	
 
	
 
	
 
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 

	
Unallocated Expense
	
 
	
 
	
 
	
 
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)

	
Change in Internal Reserve Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
(23.3
	
)
	
 
	
 
	
0.2
	
 
	
 
	
 
	
11.8
	
 
	
 
	
 
	
38.5
	
 
	
 
	
 
	
37.2
	
 
	
 
	
 
	
35.2
	
 
	
 
	
 
	
34.8
	
 
	
 
	
 
	
34.3
	
 
	
 
	
 
	
33.5
	
 
	
 
	
 
	
31.4
	
 

	
Interest Cost on Internal Reserve Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
30.1
	
 
	
 
	
 
	
32.1
	
 
	
 
	
 
	
32.1
	
 
	
 
	
 
	
31.1
	
 
	
 
	
 
	
27.7
	
 
	
 
	
 
	
24.5
	
 
	
 
	
 
	
21.4
	
 
	
 
	
 
	
18.4
	
 
	
 
	
 
	
15.4
	
 
	
 
	
 
	
12.5
	
 

	
Interest on Capital, Surplus & AVR
	
 
	
 
	
 
	
 
	
 
	
 
	
17.3
	
 
	
 
	
 
	
16.3
	
 
	
 
	
 
	
15.2
	
 
	
 
	
 
	
14.3
	
 
	
 
	
 
	
13.5
	
 
	
 
	
 
	
12.6
	
 
	
 
	
 
	
11.9
	
 
	
 
	
 
	
11.2
	
 
	
 
	
 
	
10.4
	
 
	
 
	
 
	
9.6
	
 

	
Total Pre-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
366.7
	
 
	
 
	
$
	
598.7
	
 
	
 
	
$
	
586.5
	
 
	
 
	
$
	
587.6
	
 
	
 
	
$
	
559.7
	
 
	
 
	
$
	
530.7
	
 
	
 
	
$
	
516.3
	
 
	
 
	
$
	
499.4
	
 
	
 
	
$
	
473.1
	
 
	
 
	
$
	
436.8
	
 

	
Federal Income Tax (35.0%)
	
 
	
 
	
 
	
 
	
 
	
 
	
(165.4
	
)
	
 
	
 
	
(190.5
	
)
	
 
	
 
	
(185.6
	
)
	
 
	
 
	
(186.9
	
)
	
 
	
 
	
(178.0
	
)
	
 
	
 
	
(168.9
	
)
	
 
	
 
	
(165.1
	
)
	
 
	
 
	
(160.5
	
)
	
 
	
 
	
(153.4
	
)
	
 
	
 
	
(143.1
	
)

	
After-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
201.2
	
 
	
 
	
$
	
408.2
	
 
	
 
	
$
	
400.9
	
 
	
 
	
$
	
400.7
	
 
	
 
	
$
	
381.7
	
 
	
 
	
$
	
361.9
	
 
	
 
	
$
	
351.3
	
 
	
 
	
$
	
338.9
	
 
	
 
	
$
	
319.7
	
 
	
 
	
$
	
293.7
	
 

	
Distributed Earnings
	
 
	
$
	
—
	
 
	
 
	
$
	
218.8
	
 
	
 
	
$
	
426.2
	
 
	
 
	
$
	
416.5
	
 
	
 
	
$
	
415.9
	
 
	
 
	
$
	
396.9
	
 
	
 
	
$
	
374.3
	
 
	
 
	
$
	
363.9
	
 
	
 
	
$
	
352.6
	
 
	
 
	
$
	
333.3
	
 
	
 
	
$
	
307.0
	
 

	
General Account Liabilities
	
 
	
$
	
3,443.7
	
 
	
 
	
$
	
3,634.0
	
 
	
 
	
$
	
3,613.3
	
 
	
 
	
$
	
3,548.6
	
 
	
 
	
$
	
3,428.6
	
 
	
 
	
$
	
3,282.8
	
 
	
 
	
$
	
3,118.4
	
 
	
 
	
$
	
2,923.4
	
 
	
 
	
$
	
2,697.7
	
 
	
 
	
$
	
2,452.9
	
 
	
 
	
$
	
2,201.3
	
 

	
Separate Account Liabilities
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
General Account Tax Reserve (Net of DAC)
	
 
	
 
	
2,642.4
	
 
	
 
	
 
	
2,682.3
	
 
	
 
	
2,706.1
	
 
	
 
	
 
	
2,697.4
	
 
	
 
	
 
	
2,655.6
	
 
	
 
	
 
	
2,582.7
	
 
	
 
	
 
	
2,487.0
	
 
	
 
	
 
	
2,355.5
	
 
	
 
	
 
	
2,188.3
	
 
	
 
	
 
	
1,995.8
	
 
	
 
	
 
	
1,790.1
	
 

	
External Reserve Financing (w/LOC @300bp)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
50% Inforce Internal Reserve Financing

   (w/LOC @300bp)
	
 
	
 
	
(345.8
	
)
	
 
	
 
	
(369.1
	
)
	
 
	
 
	
(368.9
	
)
	
 
	
 
	
(357.1
	
)
	
 
	
 
	
(318.6
	
)
	
 
	
 
	
(281.5
	
)
	
 
	
 
	
(246.3
	
)
	
 
	
 
	
(211.5
	
)
	
 
	
 
	
(177.3
	
)
	
 
	
 
	
(143.7
	
)
	
 
	
 
	
(112.3
	
)

	
Interest Maintenance Reserve
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
Capital, Surplus & AVR
	
 
	
 
	
303.0
	
 
	
 
	
 
	
285.4
	
 
	
 
	
 
	
267.3
	
 
	
 
	
 
	
251.8
	
 
	
 
	
 
	
236.5
	
 
	
 
	
 
	
221.3
	
 
	
 
	
 
	
208.8
	
 
	
 
	
 
	
196.2
	
 
	
 
	
 
	
182.5
	
 
	
 
	
 
	
169.0
	
 
	
 
	
 
	
155.7
	
 

	
NAIC RBC (Company Action Level)
	
 
	
 
	
101.0
	
 
	
 
	
 
	
95.1
	
 
	
 
	
 
	
89.1
	
 
	
 
	
 
	
83.9
	
 
	
 
	
 
	
78.8
	
 
	
 
	
 
	
73.8
	
 
	
 
	
 
	
69.6
	
 
	
 
	
 
	
65.4
	
 
	
 
	
 
	
60.8
	
 
	
 
	
 
	
56.3
	
 
	
 
	
 
	
51.9
	
 

	
RBC Ratio (Company Action Level)
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%

 

Note: Interest on Capital, Surplus, & AVR is based on a net earnings rate of 5.70%.

- 15 -

Milliman

 

 

	
PrimeRe: 110% Mortality

Projected Statutory Operating Results

(post-tax; in millions of dollars)
	
 

	
 
	
 

	
Year Ending June 30,
	
 
	
2009
	
 
	
 
	
2010
	
 
	
 
	
2011
	
 
	
 
	
2012
	
 
	
 
	
2013
	
 
	
 
	
2014
	
 
	
 
	
2015
	
 
	
 
	
2016
	
 
	
 
	
2017
	
 
	
 
	
2018
	
 
	
 
	
2019
	
 

	
Existing and New Business
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Gross Premium Income
	
 
	
 
	
 
	
 
	
 
	
$
	
1,330.4
	
 
	
 
	
$
	
1,254.3
	
 
	
 
	
$
	
1,201.5
	
 
	
 
	
$
	
1,162.0
	
 
	
 
	
$
	
1,130.1
	
 
	
 
	
$
	
1,101.5
	
 
	
 
	
$
	
1,075.4
	
 
	
 
	
$
	
1,039.6
	
 
	
 
	
$
	
1,000.3
	
 
	
 
	
$
	
965.8
	
 

	
Reinsurance Premiums (Net of Allowances)
	
 
	
 
	
 
	
 
	
 
	
 
	
(420.8
	
)
	
 
	
 
	
(435.5
	
)
	
 
	
 
	
(451.7
	
)
	
 
	
 
	
(469.5
	
)
	
 
	
 
	
(488.7
	
)
	
 
	
 
	
(503.7
	
)
	
 
	
 
	
(517.4
	
)
	
 
	
 
	
(525.2
	
)
	
 
	
 
	
(529.4
	
)
	
 
	
 
	
(534.0
	
)

	
Seg Fund Policy Charges
	
 
	
 
	
 
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
Investment Income
	
 
	
 
	
 
	
 
	
 
	
 
	
204.9
	
 
	
 
	
 
	
212.0
	
 
	
 
	
 
	
208.3
	
 
	
 
	
 
	
203.1
	
 
	
 
	
 
	
196.3
	
 
	
 
	
 
	
188.3
	
 
	
 
	
 
	
179.2
	
 
	
 
	
 
	
168.4
	
 
	
 
	
 
	
155.8
	
 
	
 
	
 
	
142.3
	
 

	
Total Income
	
 
	
 
	
 
	
 
	
 
	
$
	
1,114.4
	
 
	
 
	
$
	
1,030.8
	
 
	
 
	
$
	
958.1
	
 
	
 
	
$
	
895.5
	
 
	
 
	
$
	
837.8
	
 
	
 
	
$
	
786.0
	
 
	
 
	
$
	
737.3
	
 
	
 
	
$
	
682.7
	
 
	
 
	
$
	
626.7
	
 
	
 
	
$
	
574.1
	
 

	
Surrender, Health and Other Benefits
	
 
	
 
	
 
	
 
	
 
	
$
	
46.8
	
 
	
 
	
$
	
45.0
	
 
	
 
	
$
	
41.7
	
 
	
 
	
$
	
39.6
	
 
	
 
	
$
	
37.8
	
 
	
 
	
$
	
36.3
	
 
	
 
	
$
	
34.8
	
 
	
 
	
$
	
33.7
	
 
	
 
	
$
	
32.2
	
 
	
 
	
$
	
30.7
	
 

	
Direct Death Benefits
	
 
	
 
	
 
	
 
	
 
	
 
	
731.7
	
 
	
 
	
 
	
727.0
	
 
	
 
	
 
	
737.6
	
 
	
 
	
 
	
751.8
	
 
	
 
	
 
	
766.7
	
 
	
 
	
 
	
781.3
	
 
	
 
	
 
	
793.5
	
 
	
 
	
 
	
799.0
	
 
	
 
	
 
	
795.5
	
 
	
 
	
 
	
786.4
	
 

	
Reinsurance Death Benefits
	
 
	
 
	
 
	
 
	
 
	
 
	
(403.4
	
)
	
 
	
 
	
(410.3
	
)
	
 
	
 
	
(425.4
	
)
	
 
	
 
	
(442.1
	
)
	
 
	
 
	
(459.6
	
)
	
 
	
 
	
(476.3
	
)
	
 
	
 
	
(490.8
	
)
	
 
	
 
	
(500.8
	
)
	
 
	
 
	
(504.3
	
)
	
 
	
 
	
(502.5
	
)

	
Cost of Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
(30.1
	
)
	
 
	
 
	
(32.1
	
)
	
 
	
 
	
(32.1
	
)
	
 
	
 
	
(31.1
	
)
	
 
	
 
	
(27.7
	
)
	
 
	
 
	
(24.5
	
)
	
 
	
 
	
(21.4
	
)
	
 
	
 
	
(18.4
	
)
	
 
	
 
	
(15.4
	
)
	
 
	
 
	
(12.5
	
)

	
Reserve Increase
	
 
	
 
	
 
	
 
	
 
	
 
	
189.1
	
 
	
 
	
(21.5)
	
 
	
 
	
 
	
(64.8
	
)
	
 
	
 
	
(119.6
	
)
	
 
	
 
	
(144.2
	
)
	
 
	
 
	
(162.6
	
)
	
 
	
 
	
(193.1
	
)
	
 
	
 
	
(226.6
	
)
	
 
	
 
	
(246.1
	
)
	
 
	
 
	
(250.9
	
)

	
Expense Allowances
	
 
	
 
	
 
	
 
	
 
	
 
	
92.1
	
 
	
 
	
 
	
85.3
	
 
	
 
	
 
	
80.7
	
 
	
 
	
 
	
77.2
	
 
	
 
	
 
	
74.2
	
 
	
 
	
 
	
71.4
	
 
	
 
	
 
	
69.0
	
 
	
 
	
 
	
66.5
	
 
	
 
	
 
	
63.5
	
 
	
 
	
 
	
60.6
	
 

	
Other Expenses
	
 
	
 
	
 
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 

	
Commission
	
 
	
 
	
 
	
 
	
 
	
 
	
116.6
	
 
	
 
	
 
	
33.6
	
 
	
 
	
 
	
29.0
	
 
	
 
	
 
	
27.2
	
 
	
 
	
 
	
26.0
	
 
	
 
	
 
	
24.8
	
 
	
 
	
 
	
24.0
	
 
	
 
	
 
	
25.0
	
 
	
 
	
 
	
23.3
	
 
	
 
	
 
	
20.6
	
 

	
Total Benefits and Expenses
	
 
	
 
	
 
	
 
	
 
	
$
	
747.8
	
 
	
 
	
$
	
432.1
	
 
	
 
	
$
	
371.7
	
 
	
 
	
$
	
307.9
	
 
	
 
	
$
	
278.1
	
 
	
 
	
$
	
255.3
	
 
	
 
	
$
	
221.0
	
 
	
 
	
$
	
183.4
	
 
	
 
	
$
	
153.6
	
 
	
 
	
$
	
137.4
	
 

	
Total Pre-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
366.7
	
 
	
 
	
$
	
598.7
	
 
	
 
	
$
	
586.5
	
 
	
 
	
$
	
587.6
	
 
	
 
	
$
	
559.7
	
 
	
 
	
$
	
530.7
	
 
	
 
	
$
	
516.3
	
 
	
 
	
$
	
499.4
	
 
	
 
	
$
	
473.1
	
 
	
 
	
$
	
436.7
	
 

	
Federal Income Tax (35.0%)
	
 
	
 
	
 
	
 
	
 
	
 
	
(165.4
	
)
	
 
	
 
	
(190.5
	
)
	
 
	
 
	
(185.6
	
)
	
 
	
 
	
(186.9
	
)
	
 
	
 
	
(178.0
	
)
	
 
	
 
	
(168.9
	
)
	
 
	
 
	
(165.1
	
)
	
 
	
 
	
(160.5
	
)
	
 
	
 
	
(153.4
	
)
	
 
	
 
	
(143.1
	
)

	
After-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
201.2
	
 
	
 
	
$
	
408.2
	
 
	
 
	
$
	
400.9
	
 
	
 
	
$
	
400.7
	
 
	
 
	
$
	
381.7
	
 
	
 
	
$
	
361.9
	
 
	
 
	
$
	
351.2
	
 
	
 
	
$
	
338.9
	
 
	
 
	
$
	
319.6
	
 
	
 
	
$
	
293.7
	
 

	
Distributed Earnings (Target RBC 

   Ratio=300%)
	
 
	
$
	
—
	
 
	
 
	
$
	
218.8
	
 
	
 
	
$
	
426.2
	
 
	
 
	
$
	
416.5
	
 
	
 
	
$
	
415.9
	
 
	
 
	
$
	
396.9
	
 
	
 
	
$
	
374.3
	
 
	
 
	
$
	
363.9
	
 
	
 
	
$
	
352.6
	
 
	
 
	
$
	
333.3
	
 
	
 
	
$
	
307.0
	
 

	
General Account Liabilities
	
 
	
$
	
3,443.7
	
 
	
 
	
$
	
3,634.0
	
 
	
 
	
$
	
3,613.3
	
 
	
 
	
$
	
3,548.6
	
 
	
 
	
$
	
3,428.6
	
 
	
 
	
$
	
3,282.8
	
 
	
 
	
$
	
3,118.4
	
 
	
 
	
$
	
2,923.4
	
 
	
 
	
$
	
2,697.7
	
 
	
 
	
$
	
2,452.9
	
 
	
 
	
$
	
2,201.3
	
 

	
Separate Account Liabilities
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
General Account Tax Reserve (Net of 

   DAC)
	
 
	
 
	
2,642.4
	
 
	
 
	
 
	
2,682.3
	
 
	
 
	
 
	
2,706.1
	
 
	
 
	
 
	
2,697.4
	
 
	
 
	
 
	
2,655.6
	
 
	
 
	
 
	
2,582.7
	
 
	
 
	
 
	
2,487.0
	
 
	
 
	
 
	
2,355.5
	
 
	
 
	
 
	
2,188.3
	
 
	
 
	
 
	
1,995.8
	
 
	
 
	
 
	
1,790.1
	
 

	
External Reserve Financing (w/LOC 

   @300bp)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
50% Inforce Internal Reserve Financing 

   (w/LOC @300bp)
	
 
	
(345.8)
	
 
	
 
	
 
	
(369.1
	
)
	
 
	
 
	
(368.9
	
)
	
 
	
 
	
(357.1
	
)
	
 
	
 
	
(318.6
	
)
	
 
	
 
	
(281.5
	
)
	
 
	
 
	
(246.3
	
)
	
 
	
 
	
(211.5
	
)
	
 
	
 
	
(177.3
	
)
	
 
	
 
	
(143.7
	
)
	
 
	
 
	
(112.3
	
)

	
Interest Maintenance Reserve
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
Capital, Surplus & AVR
	
 
	
 
	
303.0
	
 
	
 
	
 
	
285.4
	
 
	
 
	
 
	
267.3
	
 
	
 
	
 
	
251.8
	
 
	
 
	
 
	
236.5
	
 
	
 
	
 
	
221.3
	
 
	
 
	
 
	
208.8
	
 
	
 
	
 
	
196.2
	
 
	
 
	
 
	
182.5
	
 
	
 
	
 
	
169.0
	
 
	
 
	
 
	
155.7
	
 

	
NAIC RBC (Company Action Level)
	
 
	
 
	
101.0
	
 
	
 
	
 
	
95.1
	
 
	
 
	
 
	
89.1
	
 
	
 
	
 
	
83.9
	
 
	
 
	
 
	
78.8
	
 
	
 
	
 
	
73.8
	
 
	
 
	
 
	
69.6
	
 
	
 
	
 
	
65.4
	
 
	
 
	
 
	
60.8
	
 
	
 
	
56.3
	
 
	
 
	
 
	
51.9
	
 

	
RBC Ratio (Company Action Level)
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%

 

Note: Interest on Capital, Surplus, & AVR is based on a net earnings rate of 5.70%.

 

- 16 -

Milliman

 

 

	
Primerica Life: 120% Lapse

Line of Business Statutory Projection

(post-tax; in millions of dollars)
	
 

	
 
	
 

	
Year Ending June 30,
	
 
	
2009
	
 
	
 
	
2010
	
 
	
 
	
2011
	
 
	
 
	
2012
	
 
	
 
	
2013
	
 
	
 
	
2014
	
 
	
 
	
2015
	
 
	
 
	
2016
	
 
	
 
	
2017
	
 
	
 
	
2018
	
 
	
 
	
2019
	
 

	
Existing Business at 06/30/2009
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Primerica - Net (Before New Conversions)
	
 
	
 
	
 
	
 
	
 
	
$
	
218.6
	
 
	
 
	
$
	
148.6
	
 
	
 
	
$
	
140.6
	
 
	
 
	
$
	
134.3
	
 
	
 
	
$
	
128.2
	
 
	
 
	
$
	
121.2
	
 
	
 
	
$
	
117.3
	
 
	
 
	
$
	
116.8
	
 
	
 
	
$
	
119.1
	
 
	
 
	
$
	
118.7
	
 

	
Primerica New Conversions - Net
	
 
	
 
	
 
	
 
	
 
	
 
	
(42.2
	
)
	
 
	
 
	
0.6
	
 
	
 
	
 
	
0.2
	
 
	
 
	
 
	
(1.3
	
)
	
 
	
 
	
(2.6
	
)
	
 
	
 
	
(3.0
	
)
	
 
	
 
	
(33
	
)
	
 
	
 
	
(3.5
	
)
	
 
	
 
	
(3.1
	
)
	
 
	
 
	
(2.8
	
)

	
Miscellaneous Primerica
	
 
	
 
	
 
	
 
	
 
	
 
	
12.3
	
 
	
 
	
 
	
11.7
	
 
	
 
	
 
	
11.5
	
 
	
 
	
 
	
11.4
	
 
	
 
	
 
	
11.4
	
 
	
 
	
 
	
11.3
	
 
	
 
	
 
	
11.3
	
 
	
 
	
 
	
11.2
	
 
	
 
	
 
	
11.0
	
 
	
 
	
 
	
10.9
	
 

	
Total Existing Business
	
 
	
 
	
 
	
 
	
 
	
$
	
188.6
	
 
	
 
	
$
	
160.9
	
 
	
 
	
$
	
152.4
	
 
	
 
	
$
	
144.4
	
 
	
 
	
$
	
136.9
	
 
	
 
	
$
	
129.5
	
 
	
 
	
$
	
125.2
	
 
	
 
	
$
	
124.5
	
 
	
 
	
$
	
127.0
	
 
	
 
	
$
	
126.8
	
 

	
Ten Years of New Business from 06/30/2009
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Traditional Life
	
 
	
 
	
 
	
 
	
 
	
$
	
(201.4
	
)
	
 
	
$
	
(181.8
	
)
	
 
	
$
	
(160.7
	
)
	
 
	
$
	
(140.5
	
)
	
 
	
$
	
(118.9
	
)
	
 
	
$
	
(99.3
	
)
	
 
	
$
	
(78.0
	
)
	
 
	
$
	
(54.1
	
)
	
 
	
$
	
(27.8
	
)
	
 
	
$
	
0.8
	
 

	
Primerica Waiver of Premium
	
 
	
 
	
 
	
 
	
 
	
 
	
0.6
	
 
	
 
	
 
	
1.4
	
 
	
 
	
 
	
2.2
	
 
	
 
	
 
	
2.9
	
 
	
 
	
 
	
3.6
	
 
	
 
	
 
	
4.4
	
 
	
 
	
 
	
5.2
	
 
	
 
	
 
	
6.0
	
 
	
 
	
 
	
6.9
	
 
	
 
	
 
	
7.8
	
 

	
Primerica Retained Asset Account
	
 
	
 
	
 
	
 
	
 
	
 
	
0.2
	
 
	
 
	
 
	
0.5
	
 
	
 
	
 
	
0.8
	
 
	
 
	
 
	
1.2
	
 
	
 
	
 
	
1.6
	
 
	
 
	
 
	
2.1
	
 
	
 
	
 
	
2.6
	
 
	
 
	
 
	
3.2
	
 
	
 
	
 
	
3.9
	
 
	
 
	
 
	
4.6
	
 

	
Total New Business
	
 
	
 
	
 
	
 
	
 
	
$
	
(200.7
	
)
	
 
	
$
	
(179.9
	
)
	
 
	
$(157.7
	
) 
	
 
	
$
	
(136.4
	
)
	
 
	
$
	
(113.7
	
)
	
 
	
$
	
(92.8
	
)
	
 
	
$
	
(70.2
	
)
	
 
	
$
	
(44.9
	
)
	
 
	
$
	
(17.1
	
)
	
 
	
$
	
13.2
	
 

	
Unallocated Expense
	
 
	
 
	
 
	
 
	
 
	
 
	
(17.4
	
)
	
 
	
 
	
(17.4
	
)
	
 
	
 
	
(17.4
	
)
	
 
	
 
	
(17.4
	
)
	
 
	
 
	
(17.4
	
)
	
 
	
 
	
(17.4
	
)
	
 
	
 
	
(17.4
	
)
	
 
	
 
	
(17.4
	
)
	
 
	
 
	
(17.4
	
)
	
 
	
 
	
(17.4
	
)

	
Change in Internal Reserve Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
19.0
	
 
	
 
	
 
	
(4.8
	
)
	
 
	
 
	
(13.1
	
)
	
 
	
 
	
(39.1
	
)
	
 
	
 
	
(36.9
	
)
	
 
	
 
	
(35.1
	
)
	
 
	
 
	
(34.0
	
)
	
 
	
(32.9
	
)
	
 
	
 
	
(31.9
	
)
	
 
	
 
	
(29.7
	
)

	
Interest Cost on Internal Reserve Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
(30.1
	
)
	
 
	
 
	
(31.7
	
)
	
 
	
 
	
(31.3
	
)
	
 
	
 
	
(30.2
	
)
	
 
	
 
	
(26.8
	
)
	
 
	
 
	
(23.6
	
)
	
 
	
 
	
(20.5
	
)
	
 
	
(17.5
	
)
	
 
	
 
	
(14.7
	
)
	
 
	
 
	
(11.9
	
)

	
Interest on Capital, Surplus & AVR
	
 
	
 
	
 
	
 
	
 
	
 
	
21.9
	
 
	
 
	
 
	
21.5
	
 
	
 
	
 
	
19.2
	
 
	
 
	
 
	
17.2
	
 
	
 
	
 
	
14.4
	
 
	
 
	
 
	
12.6
	
 
	
 
	
 
	
11.8
	
 
	
 
	
 
	
12.2
	
 
	
 
	
 
	
14.3
	
 
	
 
	
 
	
18.4
	
 

	
Total Pre-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
(18.7
	
)
	
 
	
$
	
(51.5
	
)
	
 
	
$
	
(47.9
	
)
	
 
	
$
	
(61.5
	
)
	
 
	
$
	
(43.5
	
)
	
 
	
$
	
(26.8
	
)
	
 
	
$
	
(5.1
	
)
	
 
	
$
	
23.9
	
 
	
 
	
$
	
60.3
	
 
	
 
	
$
	
99.4
	
 

	
Federal Income Tax (35.0%)
	
 
	
 
	
 
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
(—
	
) 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
NBL Distributed Earnings
	
 
	
 
	
 
	
 
	
 
	
 
	
11.3
	
 
	
 
	
 
	
12.2
	
 
	
 
	
 
	
12.2
	
 
	
 
	
 
	
12.3
	
 
	
 
	
 
	
12.4
	
 
	
 
	
 
	
12.3
	
 
	
 
	
 
	
12.3
	
 
	
 
	
 
	
12.2
	
 
	
 
	
 
	
12.8
	
 
	
 
	
 
	
13.5
	
 

	
After-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
(7.4
	
)
	
 
	
$
	
(39.3
	
)
	
 
	
$
	
(35.6
	
)
	
 
	
$
	
(49.3
	
)
	
 
	
$
	
(31.0
	
)
	
 
	
$
	
(14.4
	
)
	
 
	
$
	
7.2
	
 
	
 
	
$
	
36.1
	
 
	
 
	
$
	
73.1
	
 
	
 
	
$
	
112.9
	
 

	
Distributed Earnings (Target RBC Ratio=300%)
	
 
	
$
	
20.0
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 

	
General Account Liabilities
	
 
	
$
	
673.7
	
 
	
 
	
$
	
675.9
	
 
	
 
	
$
	
713.1
	
 
	
 
	
$
	
796.6
	
 
	
 
	
$
	
918.6
	
 
	
 
	
$
	
1,073.8
	
 
	
 
	
$
	
1,259.9
	
 
	
 
	
$
	
1,472.9
	
 
	
 
	
$
	
1,710.2
	
 
	
 
	
$
	
1,972.1
	
 
	
 
	
$
	
2,255.2
	
 

	
Separate Account Liabilities
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
General Account Tax Reserve (Net of DAC)
	
 
	
 
	
(50.7
	
)
	
 
	
 
	
(10.2
	
)
	
 
	
 
	
78.3
	
 
	
 
	
 
	
207.1
	
 
	
 
	
 
	
365.9
	
 
	
 
	
 
	
547.6
	
 
	
 
	
 
	
747.4
	
 
	
 
	
 
	
960.1
	
 
	
 
	
 
	
1,181.6
	
 
	
 
	
 
	
1,411.1
	
 
	
 
	
 
	
1,646.3
	
 

	
External Reserve Financing (w/LOC @300bp)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
50% Inforce Internal Reserve Financing 

   (w/LOC @300bp)
	
 
	
 
	
345.8
	
 
	
 
	
 
	
364.8
	
 
	
 
	
 
	
360.0
	
 
	
 
	
 
	
346.9
	
 
	
 
	
 
	
307.8
	
 
	
 
	
 
	
270.9
	
 
	
 
	
 
	
235.8
	
 
	
 
	
 
	
201.7
	
 
	
 
	
 
	
168.8
	
 
	
 
	
 
	
136.9
	
 
	
 
	
 
	
107.2
	
 

	
Interest Maintenance Reserve
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
Capital, Surplus & AVR Excluding NBL
	
 
	
 
	
384.0
	
 
	
 
	
 
	
376.6
	
 
	
 
	
 
	
337.3
	
 
	
 
	
 
	
301.6
	
 
	
 
	
 
	
252.4
	
 
	
 
	
 
	
221.4
	
 
	
 
	
 
	
206.9
	
 
	
 
	
 
	
214.1
	
 
	
 
	
 
	
250.2
	
 
	
 
	
 
	
323.3
	
 
	
 
	
 
	
436.1
	
 

	
NBL Carrying Value
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 

	
Capital, Surplus & AVR Including NBL
	
 
	
 
	
534.0
	
 
	
 
	
 
	
526.6
	
 
	
 
	
 
	
487.3
	
 
	
 
	
 
	
451.6
	
 
	
 
	
 
	
402.4
	
 
	
 
	
 
	
371.4
	
 
	
 
	
 
	
356.9
	
 
	
 
	
 
	
364.1
	
 
	
 
	
 
	
400.2
	
 
	
 
	
 
	
473.3
	
 
	
 
	
 
	
586.1
	
 

	
NAIC RBC (Company Action Level)
	
 
	
 
	
89.7
	
 
	
 
	
 
	
92.5
	
 
	
 
	
 
	
95.3
	
 
	
 
	
 
	
98.5
	
 
	
 
	
 
	
102.5
	
 
	
 
	
 
	
107.1
	
 
	
 
	
 
	
112.0
	
 
	
 
	
 
	
117.7
	
 
	
 
	
 
	
124.3
	
 
	
 
	
 
	
131.7
	
 
	
 
	
 
	
140.0
	
 

	
RBC Ratio (Company Action Level)
	
 
	
 
	
595.5
	
%
	
 
	
 
	
569.2
	
%
	
 
	
 
	
511.6
	
%
	
 
	
 
	
458.7
	
%
	
 
	
 
	
392.6
	
%
	
 
	
 
	
346.9
	
%
	
 
	
 
	
318.6
	
%
	
 
	
 
	
309.3
	
%
	
 
	
 
	
322.1
	
%
	
 
	
 
	
359.4
	
%
	
 
	
 
	
418.6
	
%

 

Note: Interest on Capital, Surplus, & AVR is based on a net earnings rate of 5.70%.

 

- 17 -

Milliman

 

 

	
Primerica Life: 120% Lapse

Projected Statutory Operating Results

(post-tax; in millions of dollars)
	
 

	
 
	
 

	
Year Ending June 30,
	
 
	
2009
	
 
	
 
	
2010
	
 
	
 
	
2011
	
 
	
 
	
2012
	
 
	
 
	
2013
	
 
	
 
	
2014
	
 
	
 
	
2015
	
 
	
 
	
2016
	
 
	
 
	
2017
	
 
	
 
	
2018
	
 
	
 
	
2019
	
 

	
Existing and New Business
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Gross Premium Income
	
 
	
 
	
 
	
 
	
 
	
$
	
417.9
	
 
	
 
	
$
	
528.4
	
 
	
 
	
$
	
632.9
	
 
	
 
	
$
	
737.1
	
 
	
 
	
$
	
843.1
	
 
	
 
	
$
	
952.8
	
 
	
 
	
$
	
1,068.1
	
 
	
 
	
$
	
1,199.6
	
 
	
 
	
$
	
1,346.3
	
 
	
 
	
$
	
1,498.1
	
 

	
Reinsurance Premiums (Net of Allowances)
	
 
	
 
	
 
	
 
	
 
	
 
	
(116.4
	
)
	
 
	
 
	
(137.8
	
)
	
 
	
 
	
(163.1
	
)
	
 
	
 
	
(191.7
	
)
	
 
	
 
	
(223.8
	
)
	
 
	
 
	
(258.1
	
)
	
 
	
 
	
(295.8
	
)
	
 
	
 
	
(343.3
	
)
	
 
	
 
	
(395.1
	
)
	
 
	
 
	
(451.9
	
)

	
Allowances From PrimeRe
	
 
	
 
	
 
	
 
	
 
	
 
	
91.3
	
 
	
 
	
 
	
83.2
	
 
	
 
	
 
	
77.8
	
 
	
 
	
 
	
73.6
	
 
	
 
	
 
	
70.1
	
 
	
 
	
 
	
66.8
	
 
	
 
	
 
	
64.1
	
 
	
 
	
 
	
61.3
	
 
	
 
	
 
	
58.2
	
 
	
 
	
 
	
55.1
	
 

	
Investment Income
	
 
	
 
	
 
	
 
	
 
	
 
	
79.2
	
 
	
 
	
 
	
81.6
	
 
	
 
	
 
	
82.6
	
 
	
 
	
 
	
85.9
	
 
	
 
	
 
	
90.4
	
 
	
 
	
 
	
97.5
	
 
	
 
	
 
	
107.1
	
 
	
 
	
 
	
119.4
	
 
	
 
	
 
	
134.7
	
 
	
 
	
 
	
153.3
	
 

	
Total Income
	
 
	
 
	
 
	
 
	
 
	
$
	
472.0
	
 
	
 
	
$
	
555.5
	
 
	
 
	
$
	
630.2
	
 
	
 
	
$
	
705.0
	
 
	
 
	
$
	
779.8
	
 
	
 
	
$
	
859.0
	
 
	
 
	
$
	
943.6
	
 
	
 
	
$
	
1,037.0
	
 
	
 
	
$
	
1,144.2
	
 
	
 
	
$1,254.6
	
 

	
Surrender, Health and Other Benefits
	
 
	
 
	
 
	
 
	
 
	
$
	
35.7
	
 
	
 
	
$
	
16.5
	
 
	
 
	
$
	
11.7
	
 
	
 
	
$
	
10.6
	
 
	
 
	
$
	
10.8
	
 
	
 
	
$
	
11.5
	
 
	
 
	
$
	
12.9
	
 
	
 
	
$
	
14.1
	
 
	
 
	
$
	
16.0
	
 
	
 
	
$
	
17.9
	
 

	
Direct Death Benefits
	
 
	
 
	
 
	
 
	
 
	
 
	
180.7
	
 
	
 
	
 
	
201.9
	
 
	
 
	
 
	
226.5
	
 
	
 
	
 
	
254.9
	
 
	
 
	
 
	
286.5
	
 
	
 
	
 
	
321.3
	
 
	
 
	
 
	
359.2
	
 
	
 
	
 
	
404.3
	
 
	
 
	
 
	
456.9
	
 
	
 
	
 
	
513.9
	
 

	
Reinsurance Death Benefits
	
 
	
 
	
 
	
 
	
 
	
 
	
(103.0
	
)
	
 
	
 
	
(122.9
	
)
	
 
	
 
	
(145.7
	
)
	
 
	
 
	
(171.6
	
)
	
 
	
 
	
(200.5
	
)
	
 
	
 
	
(232.2
	
)
	
 
	
 
	
(266.6
	
)
	
 
	
 
	
(307.3
	
)
	
 
	
 
	
(354.7
	
)
	
 
	
 
	
(406.7
	
)

	
Cost of Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
30.1
	
 
	
 
	
 
	
31.7
	
 
	
 
	
 
	
31.3
	
 
	
 
	
 
	
30.2
	
 
	
 
	
 
	
26.8
	
 
	
 
	
 
	
23.6
	
 
	
 
	
 
	
20.5
	
 
	
 
	
 
	
17.5
	
 
	
 
	
 
	
14.7
	
 
	
 
	
 
	
11.9
	
 

	
Reserve Increase
	
 
	
 
	
 
	
 
	
 
	
 
	
(0.7
	
)
	
 
	
 
	
34.5
	
 
	
 
	
 
	
85.6
	
 
	
 
	
 
	
147.3
	
 
	
 
	
 
	
175.8
	
 
	
 
	
 
	
203.1
	
 
	
 
	
 
	
225.8
	
 
	
 
	
 
	
245.2
	
 
	
 
	
 
	
267.1
	
 
	
 
	
 
	
286.0
	
 

	
Expense (Other Than Premium Tax) (Incl 

   Unalloc)
	
 
	
 
	
 
	
 
	
 
	
 
	
158.2
	
 
	
 
	
 
	
160.9
	
 
	
 
	
 
	
165.8
	
 
	
 
	
 
	
171.9
	
 
	
 
	
 
	
178.9
	
 
	
 
	
 
	
187.4
	
 
	
 
	
 
	
197.2
	
 
	
 
	
 
	
208.0
	
 
	
 
	
 
	
219.5
	
 
	
 
	
 
	
231.9
	
 

	
Premium Tax
	
 
	
 
	
 
	
 
	
 
	
 
	
34.7
	
 
	
 
	
 
	
35.0
	
 
	
 
	
 
	
35.8
	
 
	
 
	
 
	
36.9
	
 
	
 
	
 
	
38.1
	
 
	
 
	
 
	
39.6
	
 
	
 
	
 
	
41.3
	
 
	
 
	
 
	
43.1
	
 
	
 
	
 
	
45.2
	
 
	
 
	
 
	
47.5
	
 

	
Commission
	
 
	
 
	
 
	
 
	
 
	
 
	
155.1
	
 
	
 
	
 
	
249.3
	
 
	
 
	
 
	
267.0
	
 
	
 
	
 
	
286.3
	
 
	
 
	
 
	
306.8
	
 
	
 
	
 
	
331.5
	
 
	
 
	
 
	
358.5
	
 
	
 
	
 
	
388.1
	
 
	
 
	
 
	
419.3
	
 
	
 
	
 
	
452.8
	
 

	
Total Benefits and Expenses
	
 
	
 
	
 
	
 
	
 
	
$
	
490.7
	
 
	
 
	
$
	
607.0
	
 
	
 
	
$
	
678.0
	
 
	
 
	
$
	
766.5
	
 
	
 
	
$
	
823.2
	
 
	
 
	
$
	
885.7
	
 
	
 
	
$
	
948.7
	
 
	
 
	
$
	
1,013.0
	
 
	
 
	
$
	
1,083.9
	
 
	
 
	
$
	
1,155.2
	
 

	
Total Pre-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
(18.7
	
)
	
 
	
$
	
(51.5
	
)
	
 
	
$
	
(47.9
	
)
	
 
	
$
	
(61.5
	
)
	
 
	
$
	
(43.5
	
)
	
 
	
$
	
(26.8
	
)
	
 
	
$
	
(5.1
	
)
	
 
	
$
	
23.9
	
 
	
 
	
$
	
60.3
	
 
	
 
	
$
	
99.4
	
 

	
Federal Income Tax (35.0%)
	
 
	
 
	
 
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
(—
	
) 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
NBL Distributed Earnings
	
 
	
 
	
 
	
 
	
 
	
 
	
11.3
	
 
	
 
	
 
	
12.2
	
 
	
 
	
 
	
12.2
	
 
	
 
	
 
	
12.3
	
 
	
 
	
 
	
12.4
	
 
	
 
	
 
	
12.3
	
 
	
 
	
 
	
12.3
	
 
	
 
	
 
	
12.2
	
 
	
 
	
 
	
12.8
	
 
	
 
	
 
	
13.5
	
 

	
After-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
(7.4
	
)
	
 
	
$
	
(39.3
	
)
	
 
	
$
	
(35.6
	
)
	
 
	
$
	
(49.3
	
)
	
 
	
$
	
(31.0
	
)
	
 
	
$
	
(14.4
	
)
	
 
	
$
	
7.2
	
 
	
 
	
$
	
36.1
	
 
	
 
	
$
	
73.1
	
 
	
 
	
$
	
112.9
	
 

	
Distributed Earnings (Target RBC Ratio=300%)
	
 
	
$
	
20.0
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 

	
General Account Liabilities
	
 
	
$
	
673.7
	
 
	
 
	
$
	
675.9
	
 
	
 
	
$
	
713.1
	
 
	
 
	
$
	
796.6
	
 
	
 
	
$
	
918.6
	
 
	
 
	
$
	
1,073.8
	
 
	
 
	
$
	
1,259.9
	
 
	
 
	
$
	
1,472.9
	
 
	
 
	
$
	
1,710.2
	
 
	
 
	
$
	
1,972.1
	
 
	
 
	
$
	
2,255.2
	
 

	
Separate Account Liabilities
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
General Account Tax Reserve (Net of DAC)
	
 
	
 
	
(50.7
	
)
	
 
	
 
	
(10.2
	
)
	
 
	
 
	
78.3
	
 
	
 
	
 
	
207.1
	
 
	
 
	
 
	
365.9
	
 
	
 
	
 
	
547.6
	
 
	
 
	
 
	
747.4
	
 
	
 
	
 
	
960.1
	
 
	
 
	
 
	
1,181.6
	
 
	
 
	
 
	
1,411.1
	
 
	
 
	
 
	
1,646.3
	
 

	
External Reserve Financing (w/LOC @300bp)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
50% Inforce Internal Reserve Financing (w/LOC 

   @300bp)
	
 
	
 
	
345.8
	
 
	
 
	
 
	
364.8
	
 
	
 
	
 
	
360.0
	
 
	
 
	
 
	
346.9
	
 
	
 
	
 
	
307.8
	
 
	
 
	
 
	
270.9
	
 
	
 
	
 
	
235.8
	
 
	
 
	
 
	
201.7
	
 
	
 
	
 
	
168.8
	
 
	
 
	
 
	
136.9
	
 
	
 
	
 
	
107.2
	
 

	
Interest Maintenance Reserve
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
Capital, Surplus & AVR
	
 
	
 
	
534.0
	
 
	
 
	
 
	
526.6
	
 
	
 
	
 
	
487.3
	
 
	
 
	
 
	
451.6
	
 
	
 
	
 
	
402.4
	
 
	
 
	
 
	
371.4
	
 
	
 
	
 
	
356.9
	
 
	
 
	
 
	
364.1
	
 
	
 
	
 
	
400.2
	
 
	
 
	
 
	
473.3
	
 
	
 
	
 
	
586.1
	
 

	
NAIC RBC (Company Action Level)
	
 
	
 
	
89.7
	
 
	
 
	
 
	
92.5
	
 
	
 
	
 
	
95.3
	
 
	
 
	
 
	
98.5
	
 
	
 
	
 
	
102.5
	
 
	
 
	
 
	
107.1
	
 
	
 
	
 
	
112.0
	
 
	
 
	
 
	
117.7
	
 
	
 
	
 
	
124.3
	
 
	
 
	
 
	
131.7
	
 
	
 
	
 
	
140.0
	
 

	
RBC Ratio (Company Action Level)
	
 
	
 
	
595.5
	
%
	
 
	
 
	
569.2
	
%
	
 
	
 
	
511.6
	
%
	
 
	
 
	
458.7
	
%
	
 
	
 
	
392.6
	
%
	
 
	
 
	
346.9
	
%
	
 
	
 
	
318.6
	
%
	
 
	
 
	
309.3
	
%
	
 
	
 
	
322.1
	
%
	
 
	
 
	
359.4
	
%
	
 
	
 
	
418.6
	
%

 

Note: Interest on Capital, Surplus, & AVR is based on a net earnings rate of 5.70%.

- 18 -

Milliman

 

 

	
PrimeRe: 120% Lapse

Line of Business Statutory Projection

(post-tax; in millions of dollars)
	
 

	
 
	
 

	
Year Ending June 30,
	
 
	
2009
	
 
	
 
	
2010
	
 
	
 
	
2011
	
 
	
 
	
2012
	
 
	
 
	
2013
	
 
	
 
	
2014
	
 
	
 
	
2015
	
 
	
 
	
2016
	
 
	
 
	
2017
	
 
	
 
	
2018
	
 
	
 
	
2019
	
 

	
Existing Business at 06/30/2009
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Term — Net (Before New Conversions)
	
 
	
 
	
 
	
 
	
 
	
$
	
566.2
	
 
	
 
	
$
	
594.5
	
 
	
 
	
$
	
562.4
	
 
	
 
	
$
	
537.2
	
 
	
 
	
$
	
512.7
	
 
	
 
	
$
	
484.8
	
 
	
 
	
$
	
469.2
	
 
	
 
	
$
	
451.2
	
 
	
 
	
$
	
423.2
	
 
	
 
	
$
	
388.3
	
 

	
Term — New Conversions - Net
	
 
	
 
	
 
	
 
	
 
	
 
	
(168.7
	
)
	
 
	
 
	
2.2
	
 
	
 
	
 
	
1.0
	
 
	
 
	
 
	
(5.3
	
)
	
 
	
 
	
(10.5
	
)
	
 
	
 
	
(12.0
	
)
	
 
	
 
	
(13.2
	
)
	
 
	
 
	
(13.9
	
)
	
 
	
 
	
(12.4
	
)
	
 
	
 
	
(11.2
	
)

	
Canada Segregated Funds
	
 
	
 
	
 
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
Miscellaneous
	
 
	
 
	
 
	
 
	
 
	
 
	
12.2
	
 
	
 
	
 
	
11.2
	
 
	
 
	
 
	
10.4
	
 
	
 
	
 
	
9.8
	
 
	
 
	
 
	
9.1
	
 
	
 
	
 
	
8.6
	
 
	
 
	
 
	
8.0
	
 
	
 
	
 
	
7.4
	
 
	
 
	
 
	
6.9
	
 
	
 
	
 
	
6.4
	
 

	
Total Existing Business
	
 
	
 
	
 
	
 
	
 
	
$
	
409.7
	
 
	
 
	
$
	
607.9
	
 
	
 
	
$
	
573.8
	
 
	
 
	
$
	
541.6
	
 
	
 
	
$
	
511.4
	
 
	
 
	
$
	
481.3
	
 
	
 
	
$
	
464.0
	
 
	
 
	
$
	
444.7
	
 
	
 
	
$
	
417.7
	
 
	
 
	
$
	
383.5
	
 

	
Ten Years of New Business from 

   06/30/2009
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
N/A
	
 
	
 
	
 
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 

	
Total New Business
	
 
	
 
	
 
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 

	
Unallocated Expense
	
 
	
 
	
 
	
 
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)

	
Change in Internal Reserve Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
(19.0
	
)
	
 
	
 
	
4.8
	
 
	
 
	
 
	
13.1
	
 
	
 
	
 
	
39.1
	
 
	
 
	
 
	
36.9
	
 
	
 
	
 
	
35.1
	
 
	
 
	
 
	
34.0
	
 
	
 
	
 
	
32.9
	
 
	
 
	
 
	
31.9
	
 
	
 
	
 
	
29.7
	
 

	
Interest Cost on Internal Reserve 

   Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
30.1
	
 
	
 
	
 
	
31.7
	
 
	
 
	
 
	
31.3
	
 
	
 
	
 
	
30.2
	
 
	
 
	
 
	
26.8
	
 
	
 
	
 
	
23.6
	
 
	
 
	
 
	
20.5
	
 
	
 
	
 
	
17.5
	
 
	
 
	
 
	
14.7
	
 
	
 
	
 
	
11.9
	
 

	
Interest on Capital, Surplus & AVR
	
 
	
 
	
 
	
 
	
 
	
 
	
17.3
	
 
	
 
	
 
	
16.1
	
 
	
 
	
 
	
14.9
	
 
	
 
	
 
	
13.9
	
 
	
 
	
 
	
12.9
	
 
	
 
	
 
	
12.0
	
 
	
 
	
 
	
11.2
	
 
	
 
	
 
	
10.4
	
 
	
 
	
 
	
9.6
	
 
	
 
	
 
	
8.9
	
 

	
Total Pre-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
433.1
	
 
	
 
	
$
	
655.5
	
 
	
 
	
$
	
628.0
	
 
	
 
	
$
	
619.8
	
 
	
 
	
$
	
582.9
	
 
	
 
	
$
	
547.0
	
 
	
 
	
$
	
524.7
	
 
	
 
	
$
	
500.7
	
 
	
 
	
$
	
468.9
	
 
	
 
	
$
	
428.9
	
 

	
Federal Income Tax (35.0%)
	
 
	
 
	
 
	
 
	
 
	
 
	
(185.5
	
)
	
 
	
 
	
(207.7
	
)
	
 
	
 
	
(198.1
	
)
	
 
	
 
	
(196.7
	
)
	
 
	
 
	
(185.1
	
)
	
 
	
 
	
(173.9
	
)
	
 
	
 
	
(167.6
	
)
	
 
	
 
	
(160.8
	
)
	
 
	
 
	
(151.9
	
)
	
 
	
 
	
(140.2
	
)

	
After-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
247.6
	
 
	
 
	
$
	
447.9
	
 
	
 
	
$
	
429.9
	
 
	
 
	
$
	
423.1
	
 
	
 
	
$
	
397.8
	
 
	
 
	
$
	
373.1
	
 
	
 
	
$
	
357.1
	
 
	
 
	
$
	
339.9
	
 
	
 
	
$
	
317.0
	
 
	
 
	
$
	
288.7
	
 

	
Distributed Earnings
	
 
	
$
	
—
	
 
	
 
	
$
	
268.7
	
 
	
 
	
$
	
468.7
	
 
	
 
	
$
	
447.6
	
 
	
 
	
$
	
440.0
	
 
	
 
	
$
	
414.3
	
 
	
 
	
$
	
386.7
	
 
	
 
	
$
	
370.5
	
 
	
 
	
$
	
353.8
	
 
	
 
	
$
	
330.6
	
 
	
 
	
$
	
301.7
	
 

	
General Account Liabilities
	
 
	
$
	
3,443.7
	
 
	
 
	
$
	
3,594.2
	
 
	
 
	
$
	
3,530.4
	
 
	
 
	
$
	
3,430.7
	
 
	
 
	
$
	
3,280.6
	
 
	
 
	
$
	
3,110.6
	
 
	
 
	
$
	
2,927.1
	
 
	
 
	
$
	
2,719.8
	
 
	
 
	
$
	
2,488.9
	
 
	
 
	
$
	
2,244.8
	
 
	
 
	
$
	
1,998.5
	
 

	
Separate Account Liabilities
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
General Account Tax Reserve (Net of 

   DAC)
	
 
	
 
	
2,642.4
	
 
	
 
	
 
	
2,654.9
	
 
	
 
	
 
	
2,646.7
	
 
	
 
	
 
	
2,608.6
	
 
	
 
	
 
	
2,540.5
	
 
	
 
	
 
	
2,445.6
	
 
	
 
	
 
	
2,332.5
	
 
	
 
	
 
	
2,189.4
	
 
	
 
	
 
	
2,016.8
	
 
	
 
	
 
	
1,824.8
	
 
	
 
	
 
	
1,624.1
	
 

	
External Reserve Financing (w/LOC 

   @300bp)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
50% Inforce Internal Reserve 

   Financing (w/LOC @300bp)
	
 
	
 
	
(345.8
	
)
	
 
	
 
	
(364.8
	
)
	
 
	
 
	
(360.0
	
)
	
 
	
 
	
(346.9
	
)
	
 
	
 
	
(307.8
	
)
	
 
	
 
	
(270.9
	
)
	
 
	
 
	
(235.8
	
)
	
 
	
 
	
(201.7
	
)
	
 
	
 
	
(168.8
	
)
	
 
	
 
	
(136.9
	
)
	
 
	
 
	
(107.2
	
)

	
Interest Maintenance Reserve
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
Capital, Surplus & AVR
	
 
	
 
	
303.0
	
 
	
 
	
 
	
281.8
	
 
	
 
	
 
	
261.0
	
 
	
 
	
 
	
243.3
	
 
	
 
	
 
	
226.4
	
 
	
 
	
 
	
209.9
	
 
	
 
	
 
	
196.3
	
 
	
 
	
 
	
183.0
	
 
	
 
	
 
	
169.0
	
 
	
 
	
 
	
155.5
	
 
	
 
	
 
	
142.4
	
 

	
NAIC RBC (Company Action Level)
	
 
	
 
	
101.0
	
 
	
 
	
 
	
93.9
	
 
	
 
	
 
	
87.0
	
 
	
 
	
 
	
81.1
	
 
	
 
	
 
	
75.5
	
 
	
 
	
 
	
70.0
	
 
	
 
	
 
	
65.4
	
 
	
 
	
 
	
61.0
	
 
	
 
	
 
	
56.3
	
 
	
 
	
 
	
51.8
	
 
	
 
	
 
	
47.5
	
 

	
RBC Ratio (Company Action Level)
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%

 

Note: Interest on Capital, Surplus, & AVR is based on a net earnings rate of 5.70%.

 

 

- 19 -

Milliman

 

PrimeRe: 120% Lapse 

Projected Statutory Operating Results 

(post-tax; in millions of dollars)

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Year Ending June 30,
	
 
	
2009
	
 
	
 
	
2010
	
 
	
 
	
2011
	
 
	
 
	
2012
	
 
	
 
	
2013
	
 
	
 
	
2014
	
 
	
 
	
2015
	
 
	
 
	
2016
	
 
	
 
	
2017
	
 
	
 
	
2018
	
 
	
 
	
2019
	
 

	
Existing and New Business
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Gross Premium Income
	
 
	
 
	
 
	
 
	
 
	
$
	
1,317.6
	
 
	
 
	
$
	
1,222.1
	
 
	
 
	
$
	
1,156.2
	
 
	
 
	
$
	
1,106.3
	
 
	
 
	
$
	
1,065.6
	
 
	
 
	
$
	
1,029.3
	
 
	
 
	
$
	
996.5
	
 
	
 
	
$
	
955.8
	
 
	
 
	
$
	
913.1
	
 
	
 
	
$
	
875.5
	
 

	
Reinsurance Premiums (Net of Allowances)
	
 
	
 
	
 
	
 
	
 
	
 
	
(415.2
	
)
	
 
	
 
	
(424.0
	
)
	
 
	
 
	
(435.0
	
)
	
 
	
 
	
(447.9
	
)
	
 
	
 
	
(462.2
	
)
	
 
	
 
	
(472.8
	
)
	
 
	
 
	
(482.1
	
)
	
 
	
 
	
(486.1
	
)
	
 
	
 
	
(486.9
	
)
	
 
	
 
	
(488.5
	
)

	
Seg Fund Policy Charges
	
 
	
 
	
 
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 

	
Investment Income
	
 
	
 
	
 
	
 
	
 
	
 
	
205.6
	
 
	
 
	
 
	
210.2
	
 
	
 
	
 
	
204.1
	
 
	
 
	
 
	
196.7
	
 
	
 
	
 
	
188.2
	
 
	
 
	
 
	
178.6
	
 
	
 
	
 
	
168.4
	
 
	
 
	
 
	
156.8
	
 
	
 
	
 
	
143.9
	
 
	
 
	
 
	
130.3
	
 

	
Total Income
	
 
	
 
	
 
	
 
	
 
	
$
	
1,108.1
	
 
	
 
	
$
	
1,008.4
	
 
	
 
	
$
	
925.3
	
 
	
 
	
$
	
855.1
	
 
	
 
	
$
	
791.6
	
 
	
 
	
$
	
735.1
	
 
	
 
	
$
	
682.8
	
 
	
 
	
$
	
626.5
	
 
	
 
	
$
	
570.0
	
 
	
 
	
$
	
517.3
	
 

	
Surrender, Health and Other Benefits
	
 
	
 
	
 
	
 
	
 
	
$
	
46.9
	
 
	
 
	
$
	
45.0
	
 
	
 
	
$
	
41.2
	
 
	
 
	
$
	
38.8
	
 
	
 
	
$
	
36.8
	
 
	
 
	
$
	
35.2
	
 
	
 
	
$
	
33.6
	
 
	
 
	
$
	
32.3
	
 
	
 
	
$
	
30.8
	
 
	
 
	
$
	
29.2
	
 

	
Direct Death Benefits
	
 
	
 
	
 
	
 
	
 
	
 
	
660.6
	
 
	
 
	
 
	
647.6
	
 
	
 
	
 
	
649.8
	
 
	
 
	
 
	
655.9
	
 
	
 
	
 
	
662.9
	
 
	
 
	
 
	
669.7
	
 
	
 
	
 
	
674.7
	
 
	
 
	
 
	
674.3
	
 
	
 
	
 
	
666.6
	
 
	
 
	
 
	
654.7
	
 

	
Reinsurance Death Benefits
	
 
	
 
	
 
	
 
	
 
	
 
	
(363.9
	
)
	
 
	
 
	
(364.7
	
)
	
 
	
 
	
(373.7
	
)
	
 
	
 
	
(384.5
	
)
	
 
	
 
	
(396.1
	
)
	
 
	
 
	
(407.2
	
)
	
 
	
 
	
(416.5
	
)
	
 
	
 
	
(422.0
	
)
	
 
	
 
	
(422.3
	
)
	
 
	
 
	
(418.3
	
)

	
Cost of Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
(30.1
	
)
	
 
	
 
	
(31.7
	
)
	
 
	
 
	
(31.3
	
)
	
 
	
 
	
(30.2
	
)
	
 
	
 
	
(26.8
	
)
	
 
	
 
	
(23.6
	
)
	
 
	
 
	
(20.5
	
)
	
 
	
 
	
(17.5
	
)
	
 
	
 
	
(14.7
	
)
	
 
	
 
	
(11.9
	
)

	
Reserve Increase
	
 
	
 
	
 
	
 
	
 
	
 
	
149.1
	
 
	
 
	
 
	
(64.6
	
)
	
 
	
 
	
(100.0
	
)
	
 
	
 
	
(149.9
	
)
	
 
	
 
	
(168.6
	
)
	
 
	
 
	
(181.9
	
)
	
 
	
 
	
(205.6
	
)
	
 
	
 
	
(231.9
	
)
	
 
	
 
	
(245.4
	
)
	
 
	
 
	
(245.8
	
)

	
Expense Allowances
	
 
	
 
	
 
	
 
	
 
	
 
	
91.3
	
 
	
 
	
 
	
83.2
	
 
	
 
	
 
	
77.8
	
 
	
 
	
 
	
73.6
	
 
	
 
	
 
	
70.1
	
 
	
 
	
 
	
66.8
	
 
	
 
	
 
	
64.1
	
 
	
 
	
 
	
61.3
	
 
	
 
	
 
	
58.2
	
 
	
 
	
 
	
55.1
	
 

	
Other Expenses
	
 
	
 
	
 
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 

	
Commission
	
 
	
 
	
 
	
 
	
 
	
 
	
116.0
	
 
	
 
	
 
	
33.1
	
 
	
 
	
 
	
28.4
	
 
	
 
	
 
	
26.6
	
 
	
 
	
 
	
25.3
	
 
	
 
	
 
	
24.1
	
 
	
 
	
 
	
23.4
	
 
	
 
	
 
	
24.5
	
 
	
 
	
 
	
22.9
	
 
	
 
	
 
	
20.4
	
 

	
Total Benefits and Expenses
	
 
	
 
	
 
	
 
	
 
	
$
	
675.0
	
 
	
 
	
$
	
352.9
	
 
	
 
	
$
	
297.2
	
 
	
 
	
$
	
235.3
	
 
	
 
	
$
	
208.6
	
 
	
 
	
$
	
188.2
	
 
	
 
	
$
	
158.2
	
 
	
 
	
$
	
125.9
	
 
	
 
	
$
	
101.1
	
 
	
 
	
$
	
88.4
	
 

	
Total Pre-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
433.1
	
 
	
 
	
$
	
655.5
	
 
	
 
	
$
	
628.0
	
 
	
 
	
$
	
619.8
	
 
	
 
	
$
	
583.0
	
 
	
 
	
$
	
547.0
	
 
	
 
	
$
	
524.7
	
 
	
 
	
$
	
500.6
	
 
	
 
	
$
	
468.9
	
 
	
 
	
$
	
428.8
	
 

	
Federal Income Tax (35.0%)
	
 
	
 
	
 
	
 
	
 
	
 
	
(185.5
	
)
	
 
	
 
	
(207.7
	
)
	
 
	
 
	
(198.1
	
)
	
 
	
 
	
(196.7
	
)
	
 
	
 
	
(185.1
	
)
	
 
	
 
	
(173.9
	
)
	
 
	
 
	
(167.6
	
)
	
 
	
 
	
(160.8
	
)
	
 
	
 
	
(151.9
	
)
	
 
	
 
	
(140.2
	
)

	
After-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
247.6
	
 
	
 
	
$
	
447.9
	
 
	
 
	
$
	
429.9
	
 
	
 
	
$
	
423.1
	
 
	
 
	
$
	
397.8
	
 
	
 
	
$
	
373.1
	
 
	
 
	
$
	
357.1
	
 
	
 
	
$
	
339.8
	
 
	
 
	
$
	
316.9
	
 
	
 
	
$
	
288.6
	
 

	
Distributed Earnings (Target RBC Ratio=300%)
	
 
	
$
	
0.0
	
 
	
 
	
$
	
268.7
	
 
	
 
	
$
	
468.7
	
 
	
 
	
$
	
447.6
	
 
	
 
	
$
	
440.0
	
 
	
 
	
$
	
414.3
	
 
	
 
	
$
	
386.7
	
 
	
 
	
$
	
370.5
	
 
	
 
	
$
	
353.8
	
 
	
 
	
$
	
330.6
	
 
	
 
	
$
	
301.7
	
 

	
General Account Liabilities
	
 
	
$
	
3,443.7
	
 
	
 
	
$
	
3,594.2
	
 
	
 
	
$
	
3,530.4
	
 
	
 
	
$
	
3,430.7
	
 
	
 
	
$
	
3,280.6
	
 
	
 
	
$
	
3,110.6
	
 
	
 
	
$
	
2,927.1
	
 
	
 
	
$
	
2,719.8
	
 
	
 
	
$
	
2,488.9
	
 
	
 
	
$
	
2,244.8
	
 
	
 
	
$
	
1,998.5
	
 

	
Separate Account Liabilities
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 

	
General Account Tax Reserve (Net of DAC)
	
 
	
 
	
2,642.4
	
 
	
 
	
 
	
2,654.9
	
 
	
 
	
 
	
2,646.7
	
 
	
 
	
 
	
2,608.6
	
 
	
 
	
 
	
2,540.5
	
 
	
 
	
 
	
2,445.6
	
 
	
 
	
 
	
2,332.5
	
 
	
 
	
 
	
2,189.4
	
 
	
 
	
 
	
2,016.8
	
 
	
 
	
 
	
1,824.8
	
 
	
 
	
 
	
1,624.1
	
 

	
External Reserve Financing (w/LOC @300bp)
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 

	
50% Inforce Internal Reserve Financing (w/LOC

   @300bp)
	
 
	
 
	
(345.8
	
)
	
 
	
 
	
(364.8
	
)
	
 
	
 
	
(360.0
	
)
	
 
	
 
	
(346.9
	
)
	
 
	
 
	
(307.8
	
)
	
 
	
 
	
(270.9
	
)
	
 
	
 
	
(235.8
	
)
	
 
	
 
	
(201.7
	
)
	
 
	
 
	
(168.8
	
)
	
 
	
 
	
(136.9
	
)
	
 
	
 
	
(107.2
	
)

	
Interest Maintenance Reserve
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 

	
Capital, Surplus & AVR
	
 
	
 
	
303.0
	
 
	
 
	
 
	
281.8
	
 
	
 
	
 
	
261.0
	
 
	
 
	
 
	
243.3
	
 
	
 
	
 
	
226.4
	
 
	
 
	
 
	
209.9
	
 
	
 
	
 
	
196.3
	
 
	
 
	
 
	
183.0
	
 
	
 
	
 
	
169.0
	
 
	
 
	
 
	
155.5
	
 
	
 
	
 
	
142.4
	
 

	
NAIC RBC (Company Action Level)
	
 
	
 
	
101.0
	
 
	
 
	
 
	
93.9
	
 
	
 
	
 
	
87.0
	
 
	
 
	
 
	
81.1
	
 
	
 
	
 
	
75.5
	
 
	
 
	
 
	
70.0
	
 
	
 
	
 
	
65.4
	
 
	
 
	
 
	
61.0
	
 
	
 
	
 
	
56.3
	
 
	
 
	
 
	
51.8
	
 
	
 
	
 
	
47.5
	
 

	
RBC Ratio (Company Action Level)
	
 
	
 
	
300.0
	
% 
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%

 

Note: Interest on Capital, Surplus, & AVR is based on a net earnings rate of 5.70%.

 

- 20 -

Milliman

 

Primerica Life: 400% Defaults 

Line of Business Statutory Projection 

(post-tax; in millions of dollars)

 

	
Year Ending June 30,
	
 
	
2009
	
 
	
 
	
2010
	
 
	
 
	
2011
	
 
	
 
	
2012
	
 
	
 
	
2013
	
 
	
 
	
2014
	
 
	
 
	
2015
	
 
	
 
	
2016
	
 
	
 
	
2017
	
 
	
 
	
2018
	
 
	
 
	
2019
	
 

	
Existing Business at 06/30/2009
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Primerica - Net (Before New Conversions)
	
 
	
 
	
 
	
 
	
 
	
$
	
205.4
	
 
	
 
	
$
	
137.7
	
 
	
 
	
$
	
132.5
	
 
	
 
	
$
	
128.4
	
 
	
 
	
$
	
124.4
	
 
	
 
	
$
	
119.5
	
 
	
 
	
$
	
117.7
	
 
	
 
	
$
	
119.6
	
 
	
 
	
$
	
124.5
	
 
	
 
	
$
	
126.9
	
 

	
Primerica New Conversions - Net
	
 
	
 
	
 
	
 
	
 
	
 
	
(42.3
	
)
	
 
	
 
	
(0.1
	
)
	
 
	
 
	
(0.3
	
)
	
 
	
 
	
(1.9
	
)
	
 
	
 
	
(3.3
	
)
	
 
	
 
	
(3.7
	
)
	
 
	
 
	
(4.2
	
)
	
 
	
 
	
(12.5
	
)
	
 
	
 
	
(13.3
	
)
	
 
	
 
	
(18.8
	
)

	
Miscellaneous Primerica
	
 
	
 
	
 
	
 
	
 
	
 
	
9.9
	
 
	
 
	
 
	
9.6
	
 
	
 
	
 
	
9.6
	
 
	
 
	
 
	
9.6
	
 
	
 
	
 
	
9.6
	
 
	
 
	
 
	
9.6
	
 
	
 
	
 
	
9.7
	
 
	
 
	
 
	
9.7
	
 
	
 
	
 
	
9.6
	
 
	
 
	
 
	
9.6
	
 

	
Total Existing Business
	
 
	
 
	
 
	
 
	
 
	
$
	
172.9
	
 
	
 
	
$
	
147.2
	
 
	
 
	
$
	
141.7
	
 
	
 
	
$
	
136.0
	
 
	
 
	
$
	
130.8
	
 
	
 
	
$
	
125.4
	
 
	
 
	
$
	
123.2
	
 
	
 
	
$
	
116.7
	
 
	
 
	
$
	
120.8
	
 
	
 
	
$
	
117.6
	
 

	
Ten Years of New Business from 06/30/2009
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Traditional Life
	
 
	
 
	
 
	
 
	
 
	
$
	
(200.1
	
)
	
 
	
$
	
(179.7
	
)
	
 
	
$
	
(157.1
	
)
	
 
	
$
	
(135.3
	
)
	
 
	
$
	
(112.0
	
)
	
 
	
$
	
(90.1
	
)
	
 
	
$
	
(66.0
	
)
	
 
	
$
	
(38.4
	
)
	
 
	
$
	
(7.7
	
)
	
 
	
$
	
26.4
	
 

	
Primerica Waiver of Premium
	
 
	
 
	
 
	
 
	
 
	
 
	
0.6
	
 
	
 
	
 
	
1.5
	
 
	
 
	
 
	
2.3
	
 
	
 
	
 
	
3.1
	
 
	
 
	
 
	
3.9
	
 
	
 
	
 
	
4.8
	
 
	
 
	
 
	
5.7
	
 
	
 
	
 
	
6.6
	
 
	
 
	
 
	
7.6
	
 
	
 
	
 
	
8.7
	
 

	
Primerica Retained Asset Account
	
 
	
 
	
 
	
 
	
 
	
 
	
0.2
	
 
	
 
	
 
	
0.4
	
 
	
 
	
 
	
0.7
	
 
	
 
	
 
	
1.1
	
 
	
 
	
 
	
1.4
	
 
	
 
	
 
	
1.9
	
 
	
 
	
 
	
2.3
	
 
	
 
	
 
	
2.9
	
 
	
 
	
 
	
3.4
	
 
	
 
	
 
	
4.1
	
 

	
Total New Business
	
 
	
 
	
 
	
 
	
 
	
$
	
(199.4
	
)
	
 
	
$
	
(177.9
	
)
	
 
	
$
	
(154.0
	
)
	
 
	
$
	
(131.2
	
)
	
 
	
$
	
(106.6
	
)
	
 
	
$
	
(83.4
	
)
	
 
	
$
	
(58.0
	
)
	
 
	
$
	
(29.0
	
)
	
 
	
$
	
3.4
	
 
	
 
	
$
	
39.2
	
 

	
Unallocated Expense
	
 
	
 
	
 
	
 
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)

	
Change in Internal Reserve Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
23.4
	
 
	
 
	
 
	
(0.1
	
)
	
 
	
 
	
(6.8
	
)
	
 
	
 
	
(37.2
	
)
	
 
	
 
	
(36.0
	
)
	
 
	
 
	
(35.1
	
)
	
 
	
 
	
(34.8
	
)
	
 
	
 
	
(34.4
	
)
	
 
	
 
	
(33.8
	
)
	
 
	
 
	
(31.9
	
)

	
Interest Cost on Internal Reserve Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
(30.1
	
)
	
 
	
 
	
(32.1
	
)
	
 
	
 
	
(32.1
	
)
	
 
	
 
	
(31.5
	
)
	
 
	
 
	
(28.3
	
)
	
 
	
 
	
(25.2
	
)
	
 
	
 
	
(22.1
	
)
	
 
	
 
	
(19.1
	
)
	
 
	
 
	
(16.1
	
)
	
 
	
 
	
(13.2
	
)

	
Interest on Capital, Surplus & AVR
	
 
	
 
	
 
	
 
	
 
	
 
	
19.2
	
 
	
 
	
 
	
18.2
	
 
	
 
	
 
	
15.7
	
 
	
 
	
 
	
13.6
	
 
	
 
	
 
	
10.8
	
 
	
 
	
 
	
9.1
	
 
	
 
	
 
	
8.4
	
 
	
 
	
 
	
8.9
	
 
	
 
	
 
	
10.8
	
 
	
 
	
 
	
14.8
	
 

	
Total Pre-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
(30.6
	
)
	
 
	
$
	
(61.3
	
)
	
 
	
$
	
(52.2
	
)
	
 
	
$
	
(66.9
	
)
	
 
	
$
	
(46.0
	
)
	
 
	
$
	
(25.8
	
)
	
 
	
$
	
0.0
	
 
	
 
	
$
	
26.6
	
 
	
 
	
$
	
68.4
	
 
	
 
	
$
	
109.9
	
 

	
Federal Income Tax (35.0%)
	
 
	
 
	
 
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
(—
	
)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
(—
	
) 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
(7.9
	
)

	
NBL Distributed Earnings
	
 
	
 
	
 
	
 
	
 
	
 
	
10.3
	
 
	
 
	
 
	
11.2
	
 
	
 
	
 
	
11.2
	
 
	
 
	
 
	
11.2
	
 
	
 
	
 
	
11.3
	
 
	
 
	
 
	
11.1
	
 
	
 
	
 
	
11.0
	
 
	
 
	
 
	
10.9
	
 
	
 
	
 
	
11.3
	
 
	
 
	
 
	
11.9
	
 

	
After-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
(20.4
	
)
	
 
	
$
	
(50.1
	
)
	
 
	
$
	
(41.1
	
)
	
 
	
$
	
(55.7
	
)
	
 
	
$
	
(34.7
	
)
	
 
	
$
	
(14.7
	
)
	
 
	
$
	
11.1
	
 
	
 
	
$
	
37.4
	
 
	
 
	
$
	
79.8
	
 
	
 
	
$
	
113.9
	
 

	
Distributed Earnings (Target RBC Ratio=300%)
	
 
	
$
	
20.0
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 

	
General Account Liabilities
	
 
	
$
	
673.7
	
 
	
 
	
$
	
682.3
	
 
	
 
	
$
	
731.7
	
 
	
 
	
$
	
832.4
	
 
	
 
	
$
	
978.1
	
 
	
 
	
$
	
1,163.9
	
 
	
 
	
$
	
1,387.8
	
 
	
 
	
$
	
1,645.5
	
 
	
 
	
$
	
1,927.3
	
 
	
 
	
$
	
2,247.5
	
 
	
 
	
$
	
2,605.5
	
 

	
Separate Account Liabilities
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
General Account Tax Reserve (Net of DAC)
	
 
	
 
	
(50.7
	
)
	
 
	
 
	
(5.9
	
)
	
 
	
 
	
90.8
	
 
	
232.1
	
 
	
 
	
 
	
409.3
	
 
	
 
	
 
	
615.6
	
 
	
 
	
 
	
846.6
	
 
	
 
	
 
	
1,096.7
	
 
	
 
	
 
	
1,354.2
	
 
	
 
	
 
	
1,631.0
	
 
	
 
	
 
	
1,928.1
	
 

	
External Reserve Financing (w/LOC @300bp)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
50% Inforce Internal Reserve Financing (w/LOC

   @300bp)
	
 
	
 
	
345.8
	
 
	
 
	
 
	
369.2
	
 
	
 
	
 
	
369.1
	
 
	
362.4
	
 
	
 
	
 
	
325.2
	
 
	
 
	
 
	
289.2
	
 
	
 
	
 
	
254.1
	
 
	
 
	
 
	
219.3
	
 
	
 
	
 
	
185.0
	
 
	
 
	
 
	
151.2
	
 
	
 
	
 
	
119.3
	
 

	
Interest Maintenance Reserve
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 
	
 
	
 
	
0.0
	
 

	
Capital, Surplus & AVR Excluding NBL
	
 
	
 
	
384.0
	
 
	
 
	
 
	
363.6
	
 
	
 
	
 
	
313.5
	
 
	
272.5
	
 
	
 
	
 
	
216.7
	
 
	
 
	
 
	
182.1
	
 
	
 
	
 
	
167.3
	
 
	
 
	
 
	
178.4
	
 
	
 
	
 
	
215.9
	
 
	
 
	
 
	
295.6
	
 
	
 
	
 
	
409.5
	
 

	
NBL Carrying Value
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 

	
Capital, Surplus & AVR Including NBL
	
 
	
 
	
534.0
	
 
	
 
	
 
	
513.6
	
 
	
 
	
 
	
463.5
	
 
	
422.5
	
 
	
 
	
 
	
366.7
	
 
	
 
	
 
	
332.1
	
 
	
 
	
 
	
317.3
	
 
	
 
	
 
	
328.4
	
 
	
 
	
 
	
365.9
	
 
	
 
	
 
	
445.6
	
 
	
 
	
 
	
559.5
	
 

	
NAIC RBC (Company Action Level)
	
 
	
 
	
90.0
	
 
	
 
	
 
	
93.3
	
 
	
 
	
 
	
97.1
	
 
	
101.5
	
 
	
 
	
 
	
106.8
	
 
	
 
	
 
	
112.7
	
 
	
 
	
 
	
119.1
	
 
	
 
	
 
	
126.3
	
 
	
 
	
 
	
134.7
	
 
	
 
	
 
	
144.0
	
 
	
 
	
 
	
154.5
	
 

	
RBC Ratio (Company Action Level)
	
 
	
 
	
593.2
	
%
	
 
	
 
	
550.5
	
%
	
 
	
 
	
477.2
	
%
	
416.2%
	
 
	
 
	
 
	
343.4
	
%
	
 
	
 
	
294.7
	
%
	
 
	
 
	
266.5
	
%
	
 
	
 
	
260.1
	
%
	
 
	
 
	
271.6
	
%
	
 
	
 
	
309.4
	
%
	
 
	
 
	
362.2
	
%

 

Note: Interest on Capital, Surplus, & AVR is based on a net earnings rate of 5.00%.

 

- 21 -

Milliman

 

Primerica Life: 400% Defaults 

Projected Statutory Operating Results 

(post-tax; in millions of dollars)

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Year Ending June 30,
	
 
	
2009
	
 
	
 
	
2010
	
 
	
 
	
2011
	
 
	
 
	
2012
	
 
	
 
	
2013
	
 
	
 
	
2014
	
 
	
 
	
2015
	
 
	
 
	
2016
	
 
	
 
	
2017
	
 
	
 
	
2018
	
 
	
 
	
2019
	
 

	
Existing and New Business
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Gross Premium Income
	
 
	
 
	
 
	
 
	
 
	
$
	
422.6
	
 
	
 
	
$
	
546.2
	
 
	
 
	
$
	
666.1
	
 
	
 
	
$
	
787.2
	
 
	
 
	
$
	
911.3
	
 
	
 
	
$
	
1,040.6
	
 
	
 
	
$
	
1,176.9
	
 
	
 
	
$
	
1,345.0
	
 
	
 
	
$
	
1,539.9
	
 
	
 
	
$
	
1,736.5
	
 

	
Reinsurance Premiums (Net of Allowances)
	
 
	
 
	
 
	
 
	
 
	
 
	
(118.1
	
)
	
 
	
 
	
(142.6
	
)
	
 
	
 
	
(171.8
	
)
	
 
	
 
	
(205.1
	
)
	
 
	
 
	
(242.6
	
)
	
 
	
 
	
(283.2
	
)
	
 
	
 
	
(328.2
	
)
	
 
	
 
	
(396.4
	
)
	
 
	
 
	
(470.3
	
)
	
 
	
 
	
(550.3
	
)

	
Allowances From PrimeRe
	
 
	
 
	
 
	
 
	
 
	
 
	
92.1
	
 
	
 
	
 
	
85.3
	
 
	
 
	
 
	
80.8
	
 
	
 
	
 
	
77.3
	
 
	
 
	
 
	
74.3
	
 
	
 
	
 
	
71.5
	
 
	
 
	
 
	
69.2
	
 
	
 
	
 
	
65.1
	
 
	
 
	
 
	
61.3
	
 
	
 
	
 
	
57.8
	
 

	
Investment Income
	
 
	
 
	
 
	
 
	
 
	
 
	
69.5
	
 
	
 
	
 
	
71.8
	
 
	
 
	
 
	
73.2
	
 
	
 
	
 
	
77.1
	
 
	
 
	
 
	
82.3
	
 
	
 
	
 
	
90.3
	
 
	
 
	
 
	
101.0
	
 
	
 
	
 
	
114.2
	
 
	
 
	
 
	
130.4
	
 
	
 
	
 
	
150.4
	
 

	
Total Income
	
 
	
 
	
 
	
 
	
 
	
$
	
466.1
	
 
	
 
	
$
	
560.7
	
 
	
 
	
$
	
648.2
	
 
	
 
	
$
	
736.5
	
 
	
 
	
$
	
825.3
	
 
	
 
	
$
	
919.2
	
 
	
 
	
$
	
1,018.9
	
 
	
 
	
$
	
1,127.8
	
 
	
 
	
$
	
1,261.3
	
 
	
 
	
$
	
1,394.3
	
 

	
Surrender, Health and Other Benefits
	
 
	
 
	
 
	
 
	
 
	
$
	
33.7
	
 
	
 
	
$
	
12.7
	
 
	
 
	
$
	
8.4
	
 
	
 
	
$
	
7.7
	
 
	
 
	
$
	
8.1
	
 
	
 
	
$
	
9.0
	
 
	
 
	
$
	
10.6
	
 
	
 
	
$
	
12.2
	
 
	
 
	
$
	
14.4
	
 
	
 
	
$
	
16.5
	
 

	
Direct Death Benefits
	
 
	
 
	
 
	
 
	
 
	
 
	
182.1
	
 
	
 
	
 
	
207.0
	
 
	
 
	
 
	
235.9
	
 
	
 
	
 
	
269.4
	
 
	
 
	
 
	
306.9
	
 
	
 
	
 
	
348.3
	
 
	
 
	
 
	
393.8
	
 
	
 
	
 
	
456.1
	
 
	
 
	
 
	
534.4
	
 
	
 
	
 
	
616.3
	
 

	
Reinsurance Death Benefits
	
 
	
 
	
 
	
 
	
 
	
 
	
(103.9
	
)
	
 
	
 
	
(126.4
	
)
	
 
	
 
	
(152.4
	
)
	
 
	
 
	
(182.3
	
)
	
 
	
 
	
(215.9
	
)
	
 
	
 
	
(253.1
	
)
	
 
	
 
	
(293.7
	
)
	
 
	
 
	
(348.4
	
)
	
 
	
 
	
(417.1
	
)
	
 
	
 
	
(490.6
	
)

	
Cost of Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
30.1
	
 
	
 
	
 
	
32.1
	
 
	
 
	
 
	
32.1
	
 
	
 
	
 
	
31.5
	
 
	
 
	
 
	
28.3
	
 
	
 
	
 
	
25.2
	
 
	
 
	
 
	
22.1
	
 
	
 
	
 
	
19.1
	
 
	
 
	
 
	
16.1
	
 
	
 
	
 
	
13.2
	
 

	
Reserve Increase
	
 
	
 
	
 
	
 
	
 
	
 
	
5.9
	
 
	
 
	
 
	
46.8
	
 
	
 
	
 
	
100.9
	
 
	
 
	
 
	
172.9
	
 
	
 
	
 
	
208.7
	
 
	
 
	
 
	
243.4
	
 
	
 
	
 
	
273.0
	
 
	
 
	
 
	
292.1
	
 
	
 
	
 
	
327.5
	
 
	
 
	
 
	
362.7
	
 

	
Expense (Other Than Premium Tax)

   (Incl Unalloc)
	
 
	
 
	
 
	
 
	
 
	
 
	
158.2
	
 
	
 
	
 
	
162.5
	
 
	
 
	
 
	
168.7
	
 
	
 
	
 
	
176.1
	
 
	
 
	
 
	
184.4
	
 
	
 
	
 
	
194.2
	
 
	
 
	
 
	
205.3
	
 
	
 
	
 
	
217.4
	
 
	
 
	
 
	
230.2
	
 
	
 
	
 
	
244.1
	
 

	
Premium Tax
	
 
	
 
	
 
	
 
	
 
	
 
	
35.1
	
 
	
 
	
 
	
36.0
	
 
	
 
	
 
	
37.4
	
 
	
 
	
 
	
39.0
	
 
	
 
	
 
	
40.8
	
 
	
 
	
 
	
42.9
	
 
	
 
	
 
	
45.1
	
 
	
 
	
 
	
47.5
	
 
	
 
	
 
	
50.2
	
 
	
 
	
 
	
53.1
	
 

	
Commission
	
 
	
 
	
 
	
 
	
 
	
 
	
155.6
	
 
	
 
	
 
	
251.4
	
 
	
 
	
 
	
269.4
	
 
	
 
	
 
	
289.1
	
 
	
 
	
 
	
310.1
	
 
	
 
	
 
	
335.2
	
 
	
 
	
 
	
362.8
	
 
	
 
	
 
	
405.3
	
 
	
 
	
 
	
437.2
	
 
	
 
	
 
	
469.2
	
 

	
Total Benefits and Expenses
	
 
	
 
	
 
	
 
	
 
	
$
	
496.8
	
 
	
 
	
$
	
622.0
	
 
	
 
	
$
	
700.5
	
 
	
 
	
$
	
803.5
	
 
	
 
	
$
	
871.3
	
 
	
 
	
$
	
945.0
	
 
	
 
	
$
	
1,018.9
	
 
	
 
	
$
	
1,101.2
	
 
	
 
	
$
	
1,192.9
	
 
	
 
	
$
	
1,284.5
	
 

	
Total Pre-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
(30.6
	
)
	
 
	
$
	
(61.3
	
)
	
 
	
$
	
(52.2
	
)
	
 
	
$
	
(66.9
	
)
	
 
	
$
	
(46.0
	
)
	
 
	
$
	
(25.8
	
)
	
 
	
$
	
—
	
 
	
 
	
$
	
26.6
	
 
	
 
	
$
	
68.4
	
 
	
 
	
$
	
109.9
	
 

	
Federal Income Tax (35.0%)
	
 
	
 
	
 
	
 
	
 
	
 
	
(—
	
) 
	
 
	
 
	
—
	
 
	
 
	
 
	
(—
	
) 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
(7.9
	
)

	
NBL Distributed Earnings
	
 
	
 
	
 
	
 
	
 
	
 
	
10.3
	
 
	
 
	
 
	
11.2
	
 
	
 
	
 
	
11.2
	
 
	
 
	
 
	
11.2
	
 
	
 
	
 
	
11.3
	
 
	
 
	
 
	
11.1
	
 
	
 
	
 
	
11.0
	
 
	
 
	
 
	
10.9
	
 
	
 
	
 
	
11.3
	
 
	
 
	
 
	
11.9
	
 

	
After-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
(20.4
	
)
	
 
	
$
	
(50.1
	
)
	
 
	
$
	
(41.1
	
)
	
 
	
$
	
(55.7
	
)
	
 
	
$
	
(34.7
	
)
	
 
	
$
	
(14.7
	
)
	
 
	
$
	
11.1
	
 
	
 
	
$
	
37.4
	
 
	
 
	
$
	
79.8
	
 
	
 
	
$
	
113.9
	
 

	
Distributed Earnings (Target RBC Ratio=300%)
	
 
	
$
	
20.0
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 

	
General Account Liabilities
	
 
	
$
	
673.7
	
 
	
 
	
$
	
682.3
	
 
	
 
	
$
	
731.7
	
 
	
 
	
$
	
832.4
	
 
	
 
	
$
	
978.1
	
 
	
 
	
$
	
1,163.9
	
 
	
 
	
$
	
1,387.8
	
 
	
 
	
$
	
1,645.5
	
 
	
 
	
$
	
1,927.3
	
 
	
 
	
$
	
2,247.5
	
 
	
 
	
$
	
2,605.5
	
 

	
Separate Account Liabilities
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
General Account Tax Reserve (Net of DAC)
	
 
	
 
	
(50.7
	
)
	
 
	
 
	
(5.9
	
)
	
 
	
 
	
90.8
	
 
	
 
	
 
	
232.1
	
 
	
 
	
 
	
409.3
	
 
	
 
	
 
	
615.6
	
 
	
 
	
 
	
846.6
	
 
	
 
	
 
	
1,096.7
	
 
	
 
	
 
	
1,354.2
	
 
	
 
	
 
	
1,631.0
	
 
	
 
	
 
	
1,928.1
	
 

	
External Reserve Financing (w/LOC @300bp)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
50% Inforce Internal Reserve Financing (w/LOC

   @300bp)
	
 
	
 
	
345.8
	
 
	
 
	
 
	
369.2
	
 
	
 
	
 
	
369.1
	
 
	
 
	
 
	
362.4
	
 
	
 
	
 
	
325.2
	
 
	
 
	
 
	
289.2
	
 
	
 
	
 
	
254.1
	
 
	
 
	
 
	
219.3
	
 
	
 
	
 
	
185.0
	
 
	
 
	
 
	
151.2
	
 
	
 
	
 
	
119.3
	
 

	
Interest Maintenance Reserve
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
Capital, Surplus & AVR
	
 
	
 
	
534.0
	
 
	
 
	
 
	
513.6
	
 
	
 
	
 
	
463.5
	
 
	
 
	
 
	
422.5
	
 
	
 
	
 
	
366.7
	
 
	
 
	
 
	
332.1
	
 
	
 
	
 
	
317.3
	
 
	
 
	
 
	
328.4
	
 
	
 
	
 
	
365.9
	
 
	
 
	
 
	
445.6
	
 
	
 
	
 
	
559.5
	
 

	
NAIC RBC (Company Action Level)
	
 
	
 
	
90.0
	
 
	
 
	
 
	
93.3
	
 
	
 
	
 
	
97.1
	
 
	
 
	
 
	
101.5
	
 
	
 
	
 
	
106.8
	
 
	
 
	
 
	
112.7
	
 
	
 
	
 
	
119.1
	
 
	
 
	
 
	
126.3
	
 
	
 
	
 
	
134.7
	
 
	
 
	
 
	
144.0
	
 
	
 
	
 
	
154.5
	
 

	
RBC Ratio (Company Action Level)
	
 
	
 
	
593.2
	
%
	
 
	
 
	
550.5
	
%
	
 
	
 
	
477.2
	
%
	
 
	
 
	
416.2
	
%
	
 
	
 
	
343.4
	
%
	
 
	
 
	
294.7
	
%
	
 
	
 
	
266.5
	
%
	
 
	
 
	
260.1
	
%
	
 
	
 
	
271.6
	
%
	
 
	
 
	
309.4
	
%
	
 
	
 
	
362.2
	
%

 

Note: Interest on Capital, Surplus, & AVR is based on a net earnings rate of 5.00%.

 

- 22 -

Milliman

 

PrimeRe: 400% Defaults 

Line of Business Statutory Projection 

(post-tax; in millions of dollars)

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Year Ending June 30,
	
 
	
2009
	
 
	
 
	
2010
	
 
	
 
	
2011
	
 
	
 
	
2012
	
 
	
 
	
2013
	
 
	
 
	
2014
	
 
	
 
	
2015
	
 
	
 
	
2016
	
 
	
 
	
2017
	
 
	
 
	
2018
	
 
	
 
	
2019
	
 

	
Existing Business at 06/30/2009
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Term - Net (Before New Conversions)
	
 
	
 
	
 
	
 
	
 
	
$
	
513.4
	
 
	
 
	
$
	
550.9
	
 
	
 
	
$
	
529.8
	
 
	
 
	
$
	
513.5
	
 
	
 
	
$
	
497.7
	
 
	
 
	
$
	
478.0
	
 
	
 
	
$
	
470.7
	
 
	
 
	
$
	
460.5
	
 
	
 
	
$
	
438.7
	
 
	
 
	
$
	
408.3
	
 

	
Term - New Conversions - Net
	
 
	
 
	
 
	
 
	
 
	
 
	
(169.3
	
)
	
 
	
 
	
(0.3
	
)
	
 
	
 
	
(1.3
	
)
	
 
	
 
	
(7.7
	
)
	
 
	
 
	
(13.1
	
)
	
 
	
 
	
(14.9
	
)
	
 
	
 
	
(16.4
	
)
	
 
	
 
	
(9.2
	
)
	
 
	
 
	
(6.6
	
)
	
 
	
 
	
0.5
	
 

	
Canada Segregated Funds
	
 
	
 
	
 
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
Miscellaneous
	
 
	
 
	
 
	
 
	
 
	
 
	
10.1
	
 
	
 
	
 
	
9.3
	
 
	
 
	
 
	
8.8
	
 
	
 
	
 
	
8.3
	
 
	
 
	
 
	
7.8
	
 
	
 
	
 
	
7.4
	
 
	
 
	
 
	
6.9
	
 
	
 
	
 
	
6.5
	
 
	
 
	
 
	
6.1
	
 
	
 
	
 
	
5.7
	
 

	
Total Existing Business
	
 
	
 
	
 
	
 
	
 
	
$
	
354.2
	
 
	
 
	
$
	
560.0
	
 
	
 
	
$
	
537.3
	
 
	
 
	
$
	
514.1
	
 
	
 
	
$
	
492.4
	
 
	
 
	
$
	
470.5
	
 
	
 
	
$
	
461.3
	
 
	
 
	
$
	
457.8
	
 
	
 
	
$
	
438.2
	
 
	
 
	
$
	
414.6
	
 

	
Ten Years of New Business from 06/30/2009
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
N/A
	
 
	
 
	
 
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 

	
Total New Business
	
 
	
 
	
 
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 

	
Unallocated Expense
	
 
	
 
	
 
	
 
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)
	
 
	
 
	
(5.0
	
)

	
Change in Internal Reserve Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
(23.4
	
)
	
 
	
 
	
0.1
	
 
	
 
	
 
	
6.8
	
 
	
 
	
 
	
37.2
	
 
	
 
	
 
	
36.0
	
 
	
 
	
 
	
35.1
	
 
	
 
	
 
	
34.8
	
 
	
 
	
 
	
34.4
	
 
	
 
	
 
	
33.8
	
 
	
 
	
 
	
31.9
	
 

	
Interest Cost on Internal Reserve Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
30.1
	
 
	
 
	
 
	
32.1
	
 
	
 
	
 
	
32.1
	
 
	
 
	
 
	
31.5
	
 
	
 
	
 
	
28.3
	
 
	
 
	
 
	
25.2
	
 
	
 
	
 
	
22.1
	
 
	
 
	
 
	
19.1
	
 
	
 
	
 
	
16.1
	
 
	
 
	
 
	
13.2
	
 

	
Interest on Capital, Surplus & AVR
	
 
	
 
	
 
	
 
	
 
	
 
	
15.1
	
 
	
 
	
 
	
14.3
	
 
	
 
	
 
	
13.4
	
 
	
 
	
 
	
12.6
	
 
	
 
	
 
	
11.8
	
 
	
 
	
 
	
11.1
	
 
	
 
	
 
	
10.5
	
 
	
 
	
 
	
9.8
	
 
	
 
	
 
	
9.1
	
 
	
 
	
 
	
8.4
	
 

	
Total Pre-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
371.1
	
 
	
 
	
$
	
601.4
	
 
	
 
	
$
	
584.5
	
 
	
 
	
$
	
590.4
	
 
	
 
	
$
	
563.6
	
 
	
 
	
$
	
536.8
	
 
	
 
	
$
	
523.7
	
 
	
 
	
$
	
516.1
	
 
	
 
	
$
	
492.2
	
 
	
 
	
$
	
463.0
	
 

	
Federal Income Tax (35.0%)
	
 
	
 
	
 
	
 
	
 
	
 
	
(167.0
	
)
	
 
	
 
	
(191.4
	
)
	
 
	
 
	
(184.8
	
)
	
 
	
 
	
(187.7
	
)
	
 
	
 
	
(179.2
	
)
	
 
	
 
	
(170.8
	
)
	
 
	
 
	
(167.4
	
)
	
 
	
 
	
(166.3
	
)
	
 
	
 
	
(159.6
	
)
	
 
	
 
	
(151.4
	
)

	
After-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
204.1
	
 
	
 
	
$
	
410.0
	
 
	
 
	
$
	
399.8
	
 
	
 
	
$
	
402.7
	
 
	
 
	
$
	
384.4
	
 
	
 
	
$
	
366.1
	
 
	
 
	
$
	
356.3
	
 
	
 
	
$
	
349.8
	
 
	
 
	
$
	
332.6
	
 
	
 
	
$
	
311.6
	
 

	
Distributed Earnings
	
 
	
$
	
—
	
 
	
 
	
$
	
221.7
	
 
	
 
	
$
	
428.0
	
 
	
 
	
$
	
415.2
	
 
	
 
	
$
	
417.9
	
 
	
 
	
$
	
399.6
	
 
	
 
	
$
	
378.5
	
 
	
 
	
$
	
368.9
	
 
	
 
	
$
	
364.2
	
 
	
 
	
$
	
346.8
	
 
	
 
	
$
	
325.5
	
 

	
General Account Liabilities
	
 
	
$
	
3,443.7
	
 
	
 
	
$
	
3,635.0
	
 
	
 
	
$
	
3,615.4
	
 
	
 
	
$
	
3,556.5
	
 
	
 
	
$
	
3,438.6
	
 
	
 
	
$
	
3,294.6
	
 
	
 
	
$
	
3,130.8
	
 
	
 
	
$
	
2,936.1
	
 
	
 
	
$
	
2,717.3
	
 
	
 
	
$
	
2,471.8
	
 
	
 
	
$
	
2,208.8
	
 

	
Separate Account Liabilities
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
General Account Tax Reserve (Net of DAC)
	
 
	
 
	
2,642.4
	
 
	
 
	
 
	
2,685.6
	
 
	
 
	
 
	
2,712.5
	
 
	
 
	
 
	
2,706.6
	
 
	
 
	
 
	
2,667.5
	
 
	
 
	
 
	
2,597.0
	
 
	
 
	
 
	
2,503.3
	
 
	
 
	
 
	
2,373.6
	
 
	
 
	
 
	
2,215.1
	
 
	
 
	
 
	
2,025.2
	
 
	
 
	
 
	
1,812.0
	
 

	
External Reserve Financing (w/LOC @300bp)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
50% Inforce Internal Reserve Financing (w/LOC

   @300bp)
	
 
	
 
	
(345.8
	
)
	
 
	
 
	
(369.2
	
)
	
 
	
 
	
(369.1
	
)
	
 
	
 
	
(362.4
	
)
	
 
	
 
	
(325.2
	
)
	
 
	
 
	
(289.2
	
)
	
 
	
 
	
(254.1
	
)
	
 
	
 
	
(219.3
	
)
	
 
	
 
	
(185.0
	
)
	
 
	
 
	
(151.2
	
)
	
 
	
 
	
(119.3
	
)

	
Interest Maintenance Reserve
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
Capital, Surplus & AVR
	
 
	
 
	
303.0
	
 
	
 
	
 
	
285.4
	
 
	
 
	
 
	
267.5
	
 
	
 
	
 
	
252.0
	
 
	
 
	
 
	
236.9
	
 
	
 
	
 
	
221.7
	
 
	
 
	
 
	
209.3
	
 
	
 
	
 
	
196.7
	
 
	
 
	
 
	
182.3
	
 
	
 
	
 
	
168.2
	
 
	
 
	
 
	
154.3
	
 

	
NAIC RBC (Company Action Level)
	
 
	
 
	
101.0
	
 
	
 
	
 
	
95.1
	
 
	
 
	
 
	
89.2
	
 
	
 
	
 
	
84.0
	
 
	
 
	
 
	
79.0
	
 
	
 
	
 
	
73.9
	
 
	
 
	
 
	
69.8
	
 
	
 
	
 
	
65.6
	
 
	
 
	
 
	
60.8
	
 
	
 
	
 
	
56.1
	
 
	
 
	
 
	
51.4
	
 

	
RBC Ratio (Company Action Level)
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%

 

Note: Interest on Capital, Surplus, & AVR is based on a net earnings rate of 5.00%.

 

- 23 -

Milliman

 

PrimeRe: 400% Defaults 

Projected Statutory Operating Results 

(post-tax; in millions of dollars)

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Year Ending June 30,
	
 
	
2009
	
 
	
 
	
2010
	
 
	
 
	
2011
	
 
	
 
	
2012
	
 
	
 
	
2013
	
 
	
 
	
2014
	
 
	
 
	
2015
	
 
	
 
	
2016
	
 
	
 
	
2017
	
 
	
 
	
2018
	
 
	
 
	
2019
	
 

	
Existing and New Business
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Gross Premium Income
	
 
	
 
	
 
	
 
	
 
	
$
	
1,330.7
	
 
	
 
	
$
	
1,255.1
	
 
	
 
	
$
	
1,202.9
	
 
	
 
	
$
	
1,163.9
	
 
	
 
	
$
	
1,132.6
	
 
	
 
	
$
	
1,104.5
	
 
	
 
	
$
	
1,079.1
	
 
	
 
	
$
	
1,030.3
	
 
	
 
	
$
	
969.7
	
 
	
 
	
$
	
920.1
	
 

	
Reinsurance Premiums (Net of Allowances)
	
 
	
 
	
 
	
 
	
 
	
 
	
(421.0
	
)
	
 
	
 
	
(435.9
	
)
	
 
	
 
	
(452.3
	
)
	
 
	
 
	
(470.4
	
)
	
 
	
 
	
(489.8
	
)
	
 
	
 
	
(505.1
	
)
	
 
	
 
	
(519.0
	
)
	
 
	
 
	
(515.0
	
)
	
 
	
 
	
(507.7
	
)
	
 
	
 
	
(501.5
	
)

	
Seg Fund Policy Charges
	
 
	
 
	
 
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
Investment Income
	
 
	
 
	
 
	
 
	
 
	
 
	
180.5
	
 
	
 
	
 
	
186.7
	
 
	
 
	
 
	
183.6
	
 
	
 
	
 
	
179.0
	
 
	
 
	
 
	
173.1
	
 
	
 
	
 
	
166.1
	
 
	
 
	
 
	
158.2
	
 
	
 
	
 
	
149.0
	
 
	
 
	
138.1
	
 
	
 
	
 
	
126.1
	
 

	
Total Income
	
 
	
 
	
 
	
 
	
 
	
$
	
1,090.1
	
 
	
 
	
$
	
1,006.0
	
 
	
 
	
$
	
934.2
	
 
	
 
	
$
	
872.5
	
 
	
 
	
$
	
815.9
	
 
	
 
	
$
	
765.6
	
 
	
 
	
$
	
718.3
	
 
	
 
	
$
	
664.3
	
 
	
 
	
$
	
600.1
	
 
	
 
	
$
	
544.6
	
 

	
Surrender, Health and Other Benefits
	
 
	
 
	
 
	
 
	
 
	
$
	
46.7
	
 
	
 
	
$
	
45.0
	
 
	
 
	
$
	
41.7
	
 
	
 
	
$
	
39.5
	
 
	
 
	
$
	
37.8
	
 
	
 
	
$
	
36.3
	
 
	
 
	
$
	
34.8
	
 
	
 
	
$
	
33.7
	
 
	
 
	
$
	
32.2
	
 
	
 
	
$
	
30.7
	
 

	
Direct Death Benefits
	
 
	
 
	
 
	
 
	
 
	
 
	
665.3
	
 
	
 
	
 
	
661.3
	
 
	
 
	
 
	
671.3
	
 
	
 
	
 
	
684.7
	
 
	
 
	
 
	
698.7
	
 
	
 
	
 
	
712.4
	
 
	
 
	
 
	
723.9
	
 
	
 
	
 
	
721.0
	
 
	
 
	
 
	
702.8
	
 
	
 
	
 
	
682.3
	
 

	
Reinsurance Death Benefits
	
 
	
 
	
 
	
 
	
 
	
 
	
(366.7
	
)
	
 
	
 
	
(373.2
	
)
	
 
	
 
	
(387.1
	
)
	
 
	
 
	
(402.5
	
)
	
 
	
(418.7)
	
 
	
 
	
 
	
(434.1
	
)
	
 
	
 
	
(447.5
	
)
	
 
	
 
	
(450.2
	
)
	
 
	
 
	
(441.2
	
)
	
 
	
 
	
(428.9
	
)

	
Cost of Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
(30.1
	
)
	
 
	
 
	
(32.1
	
)
	
 
	
 
	
(32.1
	
)
	
 
	
 
	
(31.5
	
)
	
 
	
 
	
(28.3
	
)
	
 
	
 
	
(25.2
	
)
	
 
	
 
	
(22.1
	
)
	
 
	
 
	
(19.1
	
)
	
 
	
 
	
(16.1
	
)
	
 
	
 
	
(13.2
	
)

	
Reserve Increase
	
 
	
 
	
 
	
 
	
 
	
 
	
190.2
	
 
	
 
	
 
	
(20.4
	
)
	
 
	
 
	
(59.0
	
)
	
 
	
 
	
(117.6
	
)
	
 
	
(142.4
	
)
	
 
	
 
	
(162.0
	
)
	
 
	
(192.7
	
)
	
 
	
(219.7
	
)
	
 
	
(246.8
	
)
	
 
	
 
	
(262.3
	
)

	
Expense Allowances
	
 
	
 
	
 
	
 
	
 
	
 
	
92.1
	
 
	
 
	
 
	
85.3
	
 
	
 
	
 
	
80.8
	
 
	
 
	
 
	
77.3
	
 
	
 
	
 
	
74.3
	
 
	
 
	
 
	
71.5
	
 
	
 
	
 
	
69.2
	
 
	
 
	
 
	
65.1
	
 
	
 
	
 
	
61.3
	
 
	
 
	
 
	
57.8
	
 

	
Other Expenses
	
 
	
 
	
 
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.0
	
 

	
Commission
	
 
	
 
	
 
	
 
	
 
	
 
	
116.6
	
 
	
 
	
 
	
33.6
	
 
	
 
	
 
	
29.0
	
 
	
 
	
 
	
27.2
	
 
	
 
	
 
	
26.0
	
 
	
 
	
 
	
24.8
	
 
	
 
	
 
	
24.0
	
 
	
 
	
 
	
12.6
	
 
	
 
	
10.8
	
 
	
 
	
 
	
10.3
	
 

	
Total Benefits and Expenses
	
 
	
 
	
 
	
 
	
 
	
$
	
719.0
	
 
	
 
	
$
	
404.6
	
 
	
 
	
$
	
349.6
	
 
	
 
	
$
	
282.1
	
 
	
 
	
$
	
252.4
	
 
	
 
	
$
	
228.7
	
 
	
 
	
$
	
194.7
	
 
	
 
	
$
	
148.3
	
 
	
 
	
$
	
107.9
	
 
	
 
	
$
	
81.7
	
 

	
Total Pre-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
371.1
	
 
	
 
	
$601.4
	
 
	
 
	
$
	
584.5
	
 
	
 
	
$
	
590.4
	
 
	
 
	
$
	
563.6
	
 
	
 
	
$
	
536.8
	
 
	
 
	
$
	
523.7
	
 
	
 
	
$
	
516.0
	
 
	
 
	
$
	
492.1
	
 
	
 
	
$
	
462.9
	
 

	
Federal Income Tax (35.0%)
	
 
	
 
	
 
	
 
	
 
	
 
	
(167.0
	
)
	
 
	
 
	
(191.4
	
)
	
 
	
(184.8)
	
 
	
 
	
(187.7)
	
 
	
 
	
 
	
(179.2
	
)
	
 
	
(170.8)
	
 
	
 
	
 
	
(167.4
	
)
	
 
	
 
	
(166.3
	
)
	
 
	
 
	
(159.6
	
)
	
 
	
 
	
(151.4
	
)

	
After-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
204.1
	
 
	
 
	
$
	
410.0
	
 
	
 
	
$
	
399.8
	
 
	
 
	
$
	
402.7
	
 
	
 
	
$
	
384.4
	
 
	
 
	
$
	
366.1
	
 
	
 
	
$
	
356.3
	
 
	
 
	
$
	
349.8
	
 
	
 
	
$
	
332.5
	
 
	
 
	
$
	
311.5
	
 

	
Distributed Earnings (Target RBC Ratio=300%)
	
 
	
$
	
—
	
 
	
 
	
$
	
221.7
	
 
	
 
	
$
	
428.0
	
 
	
 
	
$
	
415.2
	
 
	
 
	
$
	
417.9
	
 
	
 
	
$
	
399.6
	
 
	
 
	
$
	
378.5
	
 
	
 
	
$
	
368.9
	
 
	
 
	
$
	
364.2
	
 
	
 
	
$
	
346.8
	
 
	
 
	
$
	
325.5
	
 

	
General Account Liabilities
	
 
	
 
	
3,443.7
	
 
	
 
	
 
	
3,635.0
	
 
	
 
	
 
	
3,615.4
	
 
	
 
	
 
	
3,556.5
	
 
	
 
	
 
	
3,438.6
	
 
	
 
	
 
	
3,294.6
	
 
	
 
	
 
	
3,130.8
	
 
	
 
	
 
	
2,936.1
	
 
	
 
	
 
	
2,717.3
	
 
	
 
	
 
	
2,471.8
	
 
	
 
	
 
	
2,208.8
	
 

	
Separate Account Liabilities
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
General Account Tax Reserve (Net of DAC)
	
 
	
 
	
2,642.4
	
 
	
 
	
 
	
2,685.6
	
 
	
 
	
2,712.5
	
 
	
 
	
 
	
2,706.6
	
 
	
 
	
 
	
2,667.5
	
 
	
 
	
 
	
2,597.0
	
 
	
 
	
 
	
2,503.3
	
 
	
 
	
 
	
2,373.6
	
 
	
 
	
 
	
2,215.1
	
 
	
 
	
 
	
2,025.2
	
 
	
 
	
 
	
1,812.0
	
 

	
External Reserve Financing (w/LOC @300bp)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
50% Inforce Internal Reserve Financing (w/LOC

   @300bp)
	
 
	
 
	
(345.8
	
)
	
 
	
 
	
(369.2
	
)
	
 
	
 
	
(369.1
	
)
	
 
	
 
	
(362.4
	
)
	
 
	
 
	
(325.2
	
)
	
 
	
 
	
(289.2
	
)
	
 
	
 
	
(254.1
	
)
	
 
	
 
	
(219.3
	
)
	
 
	
 
	
(185.0
	
)
	
 
	
 
	
(151.2
	
)
	
 
	
 
	
(119.3
	
)

	
Interest Maintenance Reserve
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
Capital, Surplus & AVR
	
 
	
 
	
303.0
	
 
	
 
	
 
	
285.4
	
 
	
 
	
 
	
267.5
	
 
	
 
	
 
	
252.0
	
 
	
 
	
 
	
236.9
	
 
	
 
	
 
	
221.7
	
 
	
 
	
 
	
209.3
	
 
	
 
	
 
	
196.7
	
 
	
 
	
 
	
182.3
	
 
	
 
	
 
	
168.2
	
 
	
 
	
 
	
154.3
	
 

	
NAIC RBC (Company Action Level)
	
 
	
 
	
101.0
	
 
	
 
	
 
	
95.1
	
 
	
 
	
 
	
89.2
	
 
	
 
	
 
	
84.0
	
 
	
 
	
 
	
79.0
	
 
	
 
	
 
	
73.9
	
 
	
 
	
 
	
69.8
	
 
	
 
	
 
	
65.6
	
 
	
 
	
 
	
60.8
	
 
	
 
	
 
	
56.1
	
 
	
 
	
 
	
51.4
	
 

	
RBC Ratio (Company Action Level)
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%
	
 
	
 
	
300.0
	
%

 

Note: Interest on Capital, Surplus, & AVR is based on a net earnings rate of 5.00%.

 

- 24 -

Milliman

 

Primerica Life: 3% Production Growth 

Line of Business Statutory Projection 

(post-tax; in millions of dollars)

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Year Ending June 30,
	
 
	
2009
	
 
	
 
	
2010
	
 
	
 
	
2011
	
 
	
 
	
2012
	
 
	
 
	
2013
	
 
	
 
	
2014
	
 
	
 
	
2015
	
 
	
 
	
2016
	
 
	
 
	
2017
	
 
	
 
	
2018
	
 
	
 
	
2019
	
 

	
Existing Business at 06/30/2009
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Primerica - Net (Before New Conversions)
	
 
	
 
	
 
	
 
	
 
	
$
	
210.6
	
 
	
 
	
$
	
143.0
	
 
	
 
	
$
	
137.7
	
 
	
 
	
$
	
133.5
	
 
	
 
	
$
	
129.4
	
 
	
 
	
$
	
124.2
	
 
	
 
	
$
	
122.1
	
 
	
 
	
$
	
123.7
	
 
	
 
	
$
	
128.3
	
 
	
 
	
$
	
130.3
	
 

	
Primerica New Conversions - Net
	
 
	
 
	
 
	
 
	
 
	
 
	
(42.4
	
)
	
 
	
 
	
0.2
	
 
	
 
	
 
	
(0.1
	
)
	
 
	
 
	
(1.7
	
)
	
 
	
 
	
(3.0
	
)
	
 
	
 
	
(3.4
	
)
	
 
	
 
	
(3.8
	
)
	
 
	
 
	
(12.2
	
)
	
 
	
 
	
(13.0
	
)
	
 
	
 
	
(18.5
	
)

	
Miscellaneous Primerica
	
 
	
 
	
 
	
 
	
 
	
 
	
12.3
	
 
	
 
	
 
	
12.0
	
 
	
 
	
 
	
11.9
	
 
	
 
	
 
	
11.9
	
 
	
 
	
 
	
12.0
	
 
	
 
	
 
	
12.0
	
 
	
 
	
 
	
12.0
	
 
	
 
	
 
	
12.0
	
 
	
 
	
 
	
12.0
	
 
	
 
	
 
	
11.9
	
 

	
Total Existing Business
	
 
	
 
	
 
	
 
	
 
	
$
	
180.6
	
 
	
 
	
$
	
155.1
	
 
	
 
	
$
	
149.5
	
 
	
 
	
$
	
143.7
	
 
	
 
	
$
	
138.3
	
 
	
 
	
$
	
132.8
	
 
	
 
	
$
	
130.4
	
 
	
 
	
$
	
123.6
	
 
	
 
	
$
	
127.3
	
 
	
 
	
$
	
123.8
	
 

	
Ten Years of New Business from 06/30/2009
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Traditional Life
	
 
	
 
	
 
	
 
	
 
	
$
	
(200.8
	
)
	
 
	
$
	
(172.2
	
)
	
 
	
$
	
(141.5
	
)
	
 
	
$
	
(112.2
	
)
	
 
	
$
	
(81.6
	
)
	
 
	
$
	
(50.4
	
)
	
 
	
$
	
(17.6
	
)
	
 
	
$
	
17.7
	
 
	
 
	
$
	
55.2
	
 
	
 
	
$
	
94.8
	
 

	
Primerica Waiver of Premium
	
 
	
 
	
 
	
 
	
 
	
 
	
0.6
	
 
	
 
	
 
	
1.4
	
 
	
 
	
 
	
2.2
	
 
	
 
	
 
	
2.9
	
 
	
 
	
 
	
3.6
	
 
	
 
	
 
	
4.3
	
 
	
 
	
 
	
5.0
	
 
	
 
	
 
	
5.6
	
 
	
 
	
 
	
6.3
	
 
	
 
	
 
	
7.0
	
 

	
Primerica Retained Asset Account
	
 
	
 
	
 
	
 
	
 
	
 
	
0.2
	
 
	
 
	
 
	
0.5
	
 
	
 
	
0.8
	
 
	
 
	
 
	
1.2
	
 
	
 
	
 
	
1.6
	
 
	
 
	
 
	
2.1
	
 
	
 
	
 
	
2.6
	
 
	
 
	
 
	
3.1
	
 
	
 
	
 
	
3.7
	
 
	
 
	
 
	
4.3
	
 

	
Total New Business
	
 
	
 
	
 
	
 
	
 
	
$
	
(200.0
	
)
	
 
	
$
	
(170.2
	
)
	
 
	
$
	
(138.4
	
)
	
 
	
$
	
(108.0
	
)
	
 
	
$
	
(76.3
	
)
	
 
	
$
	
(44.0
	
)
	
 
	
$
	
(10.1
	
)
	
 
	
$
	
26.4
	
 
	
 
	
$
	
65.2
	
 
	
 
	
$
	
106.0
	
 

	
Unallocated Expense
	
 
	
 
	
 
	
 
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)
	
 
	
 
	
(16.7
	
)

	
Change in Internal Reserve Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
23.4
	
 
	
 
	
 
	
(0.1
	
)
	
 
	
 
	
(6.8
	
)
	
 
	
 
	
(37.2
	
)
	
 
	
 
	
(36.0
	
)
	
 
	
 
	
(35.1
	
)
	
 
	
 
	
(34.8
	
)
	
 
	
 
	
(34.4
	
)
	
 
	
 
	
(33.8
	
)
	
 
	
 
	
(31.9
	
)

	
Interest Cost on Internal Reserve Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
(30.1
	
)
	
 
	
 
	
(32.1
	
)
	
 
	
 
	
(32.1
	
)
	
 
	
 
	
(31.5
	
)
	
 
	
 
	
(28.3
	
)
	
 
	
 
	
(25.2
	
)
	
 
	
 
	
(22.1
	
)
	
 
	
 
	
(19.1
	
)
	
 
	
 
	
(16.1
	
)
	
 
	
 
	
(13.2
	
)

	
Interest on Capital, Surplus & AVR
	
 
	
 
	
 
	
 
	
 
	
 
	
21.9
	
 
	
 
	
 
	
21.3
	
 
	
 
	
 
	
19.6
	
 
	
 
	
 
	
18.9
	
 
	
 
	
 
	
17.9
	
 
	
 
	
 
	
18.6
	
 
	
 
	
 
	
21.1
	
 
	
 
	
 
	
25.8
	
 
	
 
	
 
	
32.3
	
 
	
 
	
 
	
38.5
	
 

	
Total Pre-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
(20.9
	
)
	
 
	
$
	
(42.6
	
)
	
 
	
$
	
(24.9
	
)
	
 
	
$
	
(30.7
	
)
	
 
	
$
	
(1.0
	
)
	
 
	
$
	
30.5
	
 
	
 
	
$
	
67.9
	
 
	
 
	
$
	
105.7
	
 
	
 
	
$
	
158.2
	
 
	
 
	
$
	
206.6
	
 

	
Federal Income Tax (35.0%)
	
 
	
 
	
 
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
(6.4
	
)
	
 
	
 
	
(64.1
	
)
	
 
	
 
	
(85.0
	
)

	
NBL Distributed Earnings
	
 
	
 
	
 
	
 
	
 
	
 
	
11.3
	
 
	
 
	
 
	
12.5
	
 
	
 
	
 
	
12.7
	
 
	
 
	
 
	
13.0
	
 
	
 
	
13.5
	
 
	
 
	
 
	
13.7
	
 
	
 
	
 
	
14.0
	
 
	
 
	
 
	
14.1
	
 
	
 
	
 
	
15.0
	
 
	
 
	
 
	
15.9
	
 

	
After-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
(9.7
	
)
	
 
	
$
	
(30.1
	
)
	
 
	
$
	
(12.1
	
)
	
 
	
$
	
(17.7
	
)
	
 
	
$
	
12.4
	
 
	
 
	
$
	
44.2
	
 
	
 
	
$
	
81.8
	
 
	
 
	
$
	
113.4
	
 
	
 
	
$
	
109.0
	
 
	
 
	
$
	
137.5
	
 

	
Distributed Earnings (Target RBC Ratio=300%)
	
 
	
$
	
20.0
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 

	
General Account Liabilities
	
 
	
$
	
673.7
	
 
	
 
	
$
	
682.3
	
 
	
 
	
$
	
731.3
	
 
	
 
	
$
	
829.6
	
 
	
 
	
$
	
968.6
	
 
	
 
	
$
	
1,141.6
	
 
	
 
	
$
	
1,344.3
	
 
	
 
	
$
	
1,570.2
	
 
	
 
	
$
	
1,806.9
	
 
	
 
	
$
	
2,066.3
	
 
	
 
	
$
	
2,345.4
	
 

	
Separate Account Liabilities
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
General Account Tax Reserve (Net of DAC)
	
 
	
 
	
(50.7
	
)
	
 
	
 
	
(5.9
	
)
	
 
	
 
	
92.1
	
 
	
 
	
 
	
234.5
	
 
	
 
	
 
	
410.5
	
 
	
 
	
 
	
611.7
	
 
	
 
	
 
	
832.0
	
 
	
 
	
 
	
1,063.8
	
 
	
 
	
 
	
1,293.2
	
 
	
 
	
 
	
1,529.9
	
 
	
 
	
 
	
1,772.9
	
 

	
External Reserve Financing (w/LOC @300bp)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
50% Inforce Internal Reserve Financing (w/LOC

   @300bp)
	
 
	
 
	
345.8
	
 
	
 
	
 
	
369.2
	
 
	
 
	
 
	
369.1
	
 
	
 
	
 
	
362.4
	
 
	
 
	
 
	
325.2
	
 
	
 
	
 
	
289.2
	
 
	
 
	
 
	
254.1
	
 
	
 
	
 
	
219.3
	
 
	
 
	
 
	
185.0
	
 
	
 
	
 
	
151.2
	
 
	
 
	
 
	
119.3
	
 

	
Interest Maintenance Reserve
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
Capital, Surplus & AVR Excluding NBL
	
 
	
 
	
384.0
	
 
	
 
	
 
	
374.3
	
 
	
 
	
 
	
344.2
	
 
	
 
	
 
	
332.1
	
 
	
 
	
 
	
314.4
	
 
	
 
	
 
	
326.8
	
 
	
 
	
 
	
371.0
	
 
	
 
	
 
	
452.9
	
 
	
 
	
 
	
566.3
	
 
	
 
	
 
	
675.3
	
 
	
 
	
 
	
812.8
	
 

	
NBL Carrying Value
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 
	
 
	
 
	
150.0
	
 

	
Capital, Surplus & AVR Including NBL
	
 
	
 
	
534.0
	
 
	
 
	
 
	
524.3
	
 
	
 
	
 
	
494.2
	
 
	
 
	
 
	
482.1
	
 
	
 
	
 
	
464.4
	
 
	
 
	
 
	
476.8
	
 
	
 
	
 
	
521.0
	
 
	
 
	
 
	
602.9
	
 
	
 
	
 
	
716.3
	
 
	
 
	
 
	
825.3
	
 
	
 
	
 
	
962.8
	
 

	
NAIC RBC (Company Action Level)
	
 
	
 
	
90.0
	
 
	
 
	
 
	
93.3
	
 
	
 
	
 
	
97.0
	
 
	
 
	
 
	
101.1
	
 
	
 
	
 
	
105.8
	
 
	
 
	
 
	
110.9
	
 
	
 
	
 
	
116.1
	
 
	
 
	
 
	
121.7
	
 
	
 
	
 
	
128.1
	
 
	
 
	
 
	
134.8
	
 
	
 
	
 
	
141.8
	
 

	
RBC Ratio (Company Action Level)
	
 
	
 
	
593.2
	
%
	
 
	
 
	
562.0
	
%
	
 
	
 
	
509.3
	
%
	
 
	
 
	
476.9
	
%
	
 
	
 
	
438.8
	
%
	
 
	
 
	
429.9
	
%
	
 
	
 
	
448.8
	
%
	
 
	
 
	
495.2
	
%
	
 
	
 
	
559.3
	
%
	
 
	
 
	
612.1
	
%
	
 
	
 
	
679.0
	
%

 

Note: Interest on Capital, Surplus, & AVR is based on a net earnings rate of 5.70%.

 

- 25 -

Milliman

 

Primerica Life: 3% Production Growth 

Projected Statutory Operating Results 

(post-tax; in millions of dollars)

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Year Ending June 30,
	
 
	
2009
	
 
	
 
	
2010
	
 
	
 
	
2011
	
 
	
 
	
2012
	
 
	
 
	
2013
	
 
	
 
	
2014
	
 
	
 
	
2015
	
 
	
 
	
2016
	
 
	
 
	
2017
	
 
	
 
	
2018
	
 
	
 
	
2019
	
 

	
Existing and New Business
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Gross Premium Income
	
 
	
 
	
 
	
 
	
 
	
$
	
422.6
	
 
	
 
	
$
	
542.7
	
 
	
 
	
$
	
653.1
	
 
	
 
	
$
	
759.2
	
 
	
 
	
$
	
862.6
	
 
	
 
	
$
	
964.1
	
 
	
 
	
$
	
1,064.5
	
 
	
 
	
$
	
1,188.1
	
 
	
 
	
$
	
1,329.4
	
 
	
 
	
$
	
1,462.6
	
 

	
Reinsurance Premiums (Net of Allowances)
	
 
	
 
	
 
	
 
	
 
	
 
	
(118.1
	
)
	
 
	
 
	
(142.1
	
)
	
 
	
 
	
(169.9
	
)
	
 
	
 
	
(200.8
	
)
	
 
	
 
	
(234.7
	
)
	
 
	
 
	
(270.1
	
)
	
 
	
 
	
(308.0
	
)
	
 
	
 
	
(366.9
	
)
	
 
	
 
	
(428.9
	
)
	
 
	
 
	
(494.2
	
)

	
Allowances From PrimeRe
	
 
	
 
	
 
	
 
	
 
	
 
	
92.1
	
 
	
 
	
 
	
85.3
	
 
	
 
	
 
	
80.8
	
 
	
 
	
 
	
77.3
	
 
	
 
	
 
	
74.3
	
 
	
 
	
 
	
71.5
	
 
	
 
	
 
	
69.2
	
 
	
 
	
 
	
65.1
	
 
	
 
	
 
	
61.3
	
 
	
 
	
 
	
57.8
	
 

	
Investment Income
	
 
	
 
	
 
	
 
	
 
	
 
	
79.3
	
 
	
 
	
 
	
82.6
	
 
	
 
	
 
	
85.5
	
 
	
 
	
 
	
91.6
	
 
	
 
	
 
	
99.3
	
 
	
 
	
 
	
110.4
	
 
	
 
	
 
	
124.6
	
 
	
 
	
 
	
141.7
	
 
	
 
	
 
	
161.7
	
 
	
 
	
 
	
182.4
	
 

	
Total Income
	
 
	
 
	
 
	
 
	
 
	
$
	
475.9
	
 
	
 
	
$
	
568.5
	
 
	
 
	
$
	
649.4
	
 
	
 
	
$
	
727.3
	
 
	
 
	
$
	
801.5
	
 
	
 
	
$
	
875.9
	
 
	
 
	
$
	
950.4
	
 
	
 
	
$
	
1,028.0
	
 
	
 
	
$
	
1,123.5
	
 
	
 
	
$
	
1,208.6
	
 

	
Surrender, Health and Other Benefits
	
 
	
 
	
 
	
 
	
 
	
$
	
33.7
	
 
	
 
	
$
	
12.8
	
 
	
 
	
$
	
8.9
	
 
	
 
	
$
	
8.3
	
 
	
 
	
$
	
8.8
	
 
	
 
	
$
	
9.8
	
 
	
 
	
$
	
11.6
	
 
	
 
	
$
	
13.3
	
 
	
 
	
$
	
15.5
	
 
	
 
	
$
	
17.6
	
 

	
Direct Death Benefits
	
 
	
 
	
 
	
 
	
 
	
 
	
182.1
	
 
	
 
	
 
	
206.4
	
 
	
 
	
 
	
233.6
	
 
	
 
	
 
	
264.3
	
 
	
 
	
 
	
297.7
	
 
	
 
	
 
	
333.4
	
 
	
 
	
 
	
371.0
	
 
	
 
	
 
	
423.2
	
 
	
 
	
 
	
488.8
	
 
	
 
	
 
	
555.1
	
 

	
Reinsurance Death Benefits
	
 
	
 
	
 
	
 
	
 
	
 
	
(103.9
	
)
	
 
	
 
	
(125.9
	
)
	
 
	
 
	
(150.6
	
)
	
 
	
 
	
(178.2
	
)
	
 
	
 
	
(208.4
	
)
	
 
	
 
	
(240.7
	
)
	
 
	
 
	
(274.8
	
)
	
 
	
 
	
(320.9
	
)
	
 
	
 
	
(378.8
	
)
	
 
	
 
	
(438.8
	
)

	
Cost of Financing
	
 
	
 
	
 
	
 
	
 
	
 
	
30.1
	
 
	
 
	
 
	
32.1
	
 
	
 
	
 
	
32.1
	
 
	
 
	
 
	
31.5
	
 
	
 
	
 
	
28.3
	
 
	
 
	
 
	
25.2
	
 
	
 
	
 
	
22.1
	
 
	
 
	
 
	
19.1
	
 
	
 
	
 
	
16.1
	
 
	
 
	
 
	
13.2
	
 

	
Reserve Increase
	
 
	
 
	
 
	
 
	
 
	
 
	
5.9
	
 
	
 
	
 
	
46.5
	
 
	
 
	
 
	
98.4
	
 
	
 
	
 
	
166.2
	
 
	
 
	
 
	
195.8
	
 
	
 
	
 
	
222.2
	
 
	
 
	
 
	
241.2
	
 
	
 
	
 
	
247.0
	
 
	
 
	
 
	
266.7
	
 
	
 
	
 
	
283.8
	
 

	
Expense (Other Than Premium Tax)

   (Incl Unalloc)
	
 
	
 
	
 
	
 
	
 
	
 
	
158.2
	
 
	
 
	
 
	
160.1
	
 
	
 
	
 
	
163.4
	
 
	
 
	
 
	
167.5
	
 
	
 
	
 
	
171.8
	
 
	
 
	
 
	
176.3
	
 
	
 
	
 
	
181.3
	
 
	
 
	
 
	
186.4
	
 
	
 
	
 
	
191.4
	
 
	
 
	
 
	
196.3
	
 

	
Premium Tax
	
 
	
 
	
 
	
 
	
 
	
 
	
35.1
	
 
	
 
	
 
	
36.0
	
 
	
 
	
 
	
37.1
	
 
	
 
	
 
	
38.5
	
 
	
 
	
 
	
39.9
	
 
	
 
	
 
	
41.3
	
 
	
 
	
 
	
42.8
	
 
	
 
	
 
	
44.4
	
 
	
 
	
 
	
46.0
	
 
	
 
	
 
	
47.6
	
 

	
Commission
	
 
	
 
	
 
	
 
	
 
	
 
	
155.6
	
 
	
 
	
 
	
243.2
	
 
	
 
	
 
	
251.3
	
 
	
 
	
 
	
260.0
	
 
	
 
	
 
	
268.8
	
 
	
 
	
 
	
277.9
	
 
	
 
	
 
	
287.3
	
 
	
 
	
 
	
309.8
	
 
	
 
	
 
	
319.6
	
 
	
 
	
 
	
327.2
	
 

	
Total Benefits and Expenses
	
 
	
 
	
 
	
 
	
 
	
$
	
496.8
	
 
	
 
	
$
	
611.2
	
 
	
 
	
$
	
674.3
	
 
	
 
	
$
	
758.0
	
 
	
 
	
$
	
802.6
	
 
	
 
	
$
	
845.4
	
 
	
 
	
$
	
882.5
	
 
	
 
	
$
	
922.3
	
 
	
 
	
$
	
965.3
	
 
	
 
	
$
	
1,002.0
	
 

	
Total Pre-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
(20.9
	
)
	
 
	
$
	
(42.6
	
)
	
 
	
$
	
(24.9
	
)
	
 
	
$
	
(30.7
	
)
	
 
	
$
	
(1.0
	
)
	
 
	
$
	
30.5
	
 
	
 
	
$
	
67.9
	
 
	
 
	
$
	
105.7
	
 
	
 
	
$
	
158.2
	
 
	
 
	
$
	
206.6
	
 

	
Federal Income Tax (35.0%)
	
 
	
 
	
 
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
(6.4
	
)
	
 
	
 
	
(64.1
	
)
	
 
	
 
	
(85.0
	
)

	
NBL Distributed Earnings
	
 
	
 
	
 
	
 
	
 
	
 
	
11.3
	
 
	
 
	
 
	
12.5
	
 
	
 
	
 
	
12.7
	
 
	
 
	
 
	
13.0
	
 
	
 
	
 
	
13.5
	
 
	
 
	
 
	
13.7
	
 
	
 
	
 
	
14.0
	
 
	
 
	
 
	
14.1
	
 
	
 
	
 
	
15.0
	
 
	
 
	
 
	
15.9
	
 

	
After-Tax Earnings
	
 
	
 
	
 
	
 
	
 
	
$
	
(9.7
	
)
	
 
	
$
	
(30.1
	
)
	
 
	
$
	
(12.1
	
)
	
 
	
$
	
(17.7
	
)
	
 
	
$
	
12.4
	
 
	
 
	
$
	
44.2
	
 
	
 
	
$
	
81.8
	
 
	
 
	
$
	
113.4
	
 
	
 
	
$
	
109.0
	
 
	
 
	
$
	
137.5
	
 

	
Distributed Earnings (Target RBC Ratio=300%)
	
 
	
$
	
20.0
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 

	
General Account Liabilities
	
 
	
$
	
673.7
	
 
	
 
	
$
	
682.3
	
 
	
 
	
$
	
731.3
	
 
	
 
	
$
	
829.6
	
 
	
 
	
$
	
968.6
	
 
	
 
	
$
	
1,141.6
	
 
	
 
	
$
	
1,344.3
	
 
	
 
	
$
	
1,570.2
	
 
	
 
	
$
	
1,806.9
	
 
	
 
	
$
	
2,066.3
	
 
	
 
	
$
	
2,345.4
	
 

	
Separate Account Liabilities
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
General Account Tax Reserve (Net of DAC)
	
 
	
 
	
(50.7
	
)
	
 
	
 
	
(5.9
	
)
	
 
	
 
	
92.1
	
 
	
 
	
 
	
234.5
	
 
	
 
	
 
	
410.5
	
 
	
 
	
 
	
611.7
	
 
	
 
	
 
	
832.0
	
 
	
 
	
 
	
1,063.8
	
 
	
 
	
 
	
1,293.2
	
 
	
 
	
 
	
1,529.9
	
 
	
 
	
 
	
1,772.9
	
 

	
External Reserve Financing (w/LOC @300bp)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
50% Inforce Internal Reserve Financing (w/LOC

   @300bp)
	
 
	
 
	
345.8
	
 
	
 
	
 
	
369.2
	
 
	
 
	
 
	
369.1
	
 
	
 
	
 
	
362.4
	
 
	
 
	
 
	
325.2
	
 
	
 
	
 
	
289.2
	
 
	
 
	
 
	
254.1
	
 
	
 
	
219.3
	
 
	
 
	
 
	
185.0
	
 
	
 
	
 
	
151.2
	
 
	
 
	
 
	
119.3
	
 

	
Interest Maintenance Reserve
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
Capital, Surplus & AVR
	
 
	
 
	
534.0
	
 
	
 
	
 
	
524.3
	
 
	
 
	
 
	
494.2
	
 
	
 
	
 
	
482.1
	
 
	
 
	
 
	
464.4
	
 
	
 
	
 
	
476.8
	
 
	
 
	
 
	
521.0
	
 
	
 
	
 
	
602.9
	
 
	
 
	
 
	
716.3
	
 
	
 
	
 
	
825.3
	
 
	
 
	
 
	
962.8
	
 

	
NAIC RBC (Company Action Level)
	
 
	
 
	
90.0
	
 
	
 
	
 
	
93.3
	
 
	
 
	
 
	
97.0
	
 
	
 
	
 
	
101.1
	
 
	
 
	
 
	
105.8
	
 
	
 
	
 
	
110.9
	
 
	
 
	
 
	
116.1
	
 
	
 
	
 
	
121.7
	
 
	
 
	
 
	
128.1
	
 
	
 
	
 
	
134.8
	
 
	
 
	
 
	
141.8
	
 

	
RBC Ratio (Company Action Level)
	
 
	
 
	
593.2
	
%
	
 
	
 
	
562.0
	
%
	
 
	
 
	
509.3
	
%
	
 
	
 
	
476.9
	
%
	
 
	
 
	
438.8
	
%
	
 
	
 
	
429.9
	
%
	
 
	
 
	
448.8
	
%
	
 
	
 
	
495.2
	
%
	
 
	
 
	
559.3
	
%
	
 
	
 
	
612.1
	
%
	
 
	
 
	
679.0
	
%

 

Note: Interest on Capital, Surplus, & AVR is based on a net earnings rate of 5.70%.

 

 

- 26 -

Milliman

 

SECTION III

Product Descriptions, 

Methodology and Actuarial Assumptions

The table below summarizes the term insurance inforce as of June 30, 2009, along with a static validation of the model.

 

	
Primerica Term Business

Static Validation

As of June 30, 2009

($ in millions)
	
 

	
 
	
 

	
 
	
 
	
Primerica
	
 

	
 
	
 
	
Actual
	
 
	
 
	
Model
	
 
	
 
	
A/E
	
 

	
Policy Count
	
 
	
$
	
1,987,531
	
 
	
 
	
$
	
1,978,221
	
 
	
 
	
 
	
100%
	
 

	
Direct Face Amount
	
 
	
 
	
535,159
	
 
	
 
	
 
	
535,061
	
 
	
 
	
 
	
100
	
 

	
YRT Face Amount
	
 
	
 
	
354,361
	
 
	
 
	
 
	
355,936
	
 
	
 
	
 
	
100
	
 

	
Coinsurance Face Amount
	
 
	
 
	
20,859
	
 
	
 
	
 
	
20,823
	
 
	
 
	
 
	
100
	
 

	
Annualized Premium
	
 
	
 
	
1,688
	
 
	
 
	
 
	
1,679
	
 
	
 
	
 
	
101
	
 

	
Base Direct Stat Reserve
	
 
	
$
	
3,380
	
 
	
 
	
$
	
3,389
	
 
	
 
	
 
	
100%
	
 

	
- Base Ceded YRT Reserve
	
 
	
 
	
531
	
 
	
 
	
 
	
531
	
 
	
 
	
 
	
100
	
 

	
- Base Ceded Coinsurance Reserve
	
 
	
 
	
214
	
 
	
 
	
 
	
221
	
 
	
 
	
 
	
97
	
 

	
+ Deficiency Reserve
	
 
	
 
	
855
	
 
	
 
	
 
	
833
	
 
	
 
	
 
	
103
	
 

	
=Net Stat Reserve
	
 
	
$3,489
	
 
	
 
	
$
	
3,470
	
 
	
 
	
 
	
101%
	
 

 

The model was projected for June 30, 2009 inforce based on seriatim data provided by Primerica. A detailed description of the model is provided in Appendix B as well as the detailed actuarial assumptions.

The projections extend for a 30 year period beginning June 30, 2009. The projections include premiums, death claims, expense allowances and statutory reserves on a direct and net of third party reinsurance basis. The projected cash flows are developed on an annual basis. Summarized below is a dynamic validation of the main cashflow items for the term model.

 

	
Primerica Term Business

Dynamic Validation

(in millions of dollars)
	
 

	
 
	
 

	
 
	
 
	
7/1/2007-6/30/2008
	
 
	
 
	
7/1/2008-6/30/2009
	
 

	
 
	
 
	
Actual
	
 
	
 
	
Model
	
 
	
 
	
Actual
	
 
	
 
	
Model
	
 

	
Insurance Amount
	
 
	
$
	
534,081
	
 
	
 
	
$
	
534,011
	
 
	
 
	
$
	
536,715
	
 
	
 
	
$
	
535,061
	
 

	
Direct Premiums
	
 
	
 
	
1,611.1
	
 
	
 
	
 
	
1,607.0
	
 
	
 
	
 
	
1,676.8
	
 
	
 
	
 
	
1,685.4
	
 

	
YRT Premiums
	
 
	
 
	
345.2
	
 
	
 
	
 
	
359.1
	
 
	
 
	
 
	
380.0
	
 
	
 
	
 
	
399.5
	
 

	
Coinsurance Premiums
	
 
	
 
	
144.3
	
 
	
 
	
 
	
130.8
	
 
	
 
	
 
	
128.9
	
 
	
 
	
 
	
132.2
	
 

	
Direct Claims
	
 
	
 
	
797.4
	
 
	
 
	
 
	
801.6
	
 
	
 
	
 
	
836.4
	
 
	
 
	
 
	
854.9
	
 

	
YRT Claims
	
 
	
 
	
308.3
	
 
	
 
	
 
	
305.8
	
 
	
 
	
 
	
337.9
	
 
	
 
	
 
	
346.2
	
 

	
Coinsurance Claims
	
 
	
 
	
130.7
	
 
	
 
	
 
	
116.7
	
 
	
 
	
 
	
121.5
	
 
	
 
	
 
	
116.9
	
 

	
Coinsurance Allowances
	
 
	
 
	
23.0
	
 
	
 
	
 
	
19.1
	
 
	
 
	
 
	
28.2
	
 
	
 
	
 
	
18.4
	
 

	
Net Insurance Cash Flows
	
 
	
$
	
786.2
	
 
	
 
	
$
	
757.2
	
 
	
 
	
$
	
819.2
	
 
	
 
	
$
	
780.3
	
 

	
Commissions
	
 
	
$
	
294.0
	
 
	
 
	
$
	
290.2
	
 
	
 
	
$
	
275.7
	
 
	
 
	
$
	
266.8
	
 

	
Net Cash Flows
	
 
	
$
	
492.2
	
 
	
 
	
$
	
466.9
	
 
	
 
	
$
	
543.4
	
 
	
 
	
$
	
513.4
	
 

 

- 27 -

Milliman

 

Product Descriptions

Primerica was an early leader in the U.S. term insurance market. The inforce business consists almost entirely of level term insurance with level periods of 10 to 30 years. Other minor term insurance is summarized in Appendix B. The business includes several optional riders: child term riders (CTR), spouse riders, increasing benefit riders (IBR), and waiver of premium. The policies inforce, other than the currently sold product, have exchange provisions which allow conversion to a recent plan without new underwriting, as described later in this section.

The following is a brief description of the product history and features.

Term Base Policy

The majority of the businesses consist of renewable 10, 15, 20, 30 and 35 - year term insurance, and decreasing term to age 65. Common Sense Term (CST) was introduced in the mid-1980’s as a 20 year term product, followed by Banded CST with four different term periods, banded by size. The Eagle series was introduced in the early 1990’s. The Custom A, Custom B, Custom Plus and Custom IV were introduced in that order in the late 1990’s and early 2000’s. Prior to the introduction of Custom Advantage in 2007, the products had three underwriting classes: preferred, non-tobacco and tobacco.

Custom Advantage, the only product that Primerica is currently selling, has an additional preferred plus underwriting class.

The premium patterns vary by product, but typically remain level during the minimum of the initial level term period and a specified attained age. After the initial level term period, the premium steps up to a new level premium period. There may be one or several step – up premium periods, until the policy becomes annual renewable term at a specified age in the contract.

The premium rates for each product series are unisex and vary by issue age, underwriting class and band. The premium bands are defined by the total face amount of the policy including riders and are as follows:

 

	
Banded CST, Eagle, Custom A:
	
 
	
$0-100k, $100-150k, $150-200k, $200-250k, $250-500k, $500k+

	
Eagle 2000:
	
 
	
$0-100k, $100-150k, $150-200k, $200k+

	
Custom B:
	
 
	
$0-150k, $150-250k, $250-350k, $350-500k, $500k+

	
Custom Plus, Custom Advantage:
	
 
	
$0-150k, $150-250k, $250-500k, $500k+

	
Others:
	
 
	
No Band

Additionally, distribution summaries are provided in Appendix B.

Child Rider

A Child Rider may be added to any life policy. Each unit of this rider provides $1,000 of death benefit on any covered child (or children). If the primary insured dies, each child will be provided with $1,000 of term insurance per unit. There is no policy fee on the Child Rider.

Premiums are $6.50 per unit for the rider, which covers all children of the primary insured. The rider expires on the policy expiration date or when the insured child reaches 25 years of age. Two children per policy has been assumed for policies that elect this rider.

- 28 -

Milliman

 

Spouse Riders

Each product series offers a Spouse Rider which has the same rate as the base policy but for the spouse issue age and underwriting class. There is no policy fee on the Spouse Rider. The Spouse Rider amount is part of the total policy face amount for defining the band of each policy. The following table summarizes the amount of Spouse Rider inforce for the term block as of June 30, 2009.

 

	
Spouse Riders Inforce

As of June 30. 2009

($ millions)
	
 

	
 
	
 

	
Direct Face Amount
	
 
	
$
	
151,652
	
 

	
YRT Reinsured Face Amount
	
 
	
 
	
106,833
	
 

	
Coinsurance Face Amount
	
 
	
 
	
4,812
	
 

	
Net Face Amount
	
 
	
$
	
40,007
	
 

 

IBR

The Increasing Benefit Rider (IBR) gives the policyholder the option to increase his or her face amount according to a specified schedule (either 5 or 10%) in policy years two through ten without undergoing additional underwriting. Each increase will have a separate premium rate according to the attained age, as specified in the rate book, which results in the total premium being the sum of the base policy premium plus each individual increase amount. The policyholder has the option to stop the face amount increases at any point, but is not allowed to re-start.

The following summarizes the amount of IBR inforce for the term block as of June 30, 2009.

 

	
IBR Inforce

As of June 30. 2009

($ millions)
	
 

	
 
	
 

	
 
	
 
	
5% Annual

Increase
	
 
	
 
	
10% Annual Increase
	
 
	
 
	
Total IBR
	
 

	
Direct Face Amount
	
 
	
$
	
33,087
	
 
	
 
	
$
	
15,048
	
 
	
 
	
$
	
48,134
	
 

	
YRT Reinsured Face Amount
	
 
	
 
	
29,235
	
 
	
 
	
 
	
9,618
	
 
	
 
	
 
	
38,852
	
 

	
Coinsurance Face Amount
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
Net Face Amount
	
 
	
$
	
3,852
	
 
	
 
	
$
	
5,430
	
 
	
 
	
$
	
9,282
	
 

Conversion

Policies issued prior to the 2007 Custom Advantage Series may be exchanged at any time without evidence of insurability, to any plan available for conversion which is currently the Custom IV product with the same underwriting class available for exchange.

The converted business is modeled with premiums based on the premium schedule of the plan that the policy is converted into. The mortality is based on the point in scale mortality rate from original issue date, mortality era and issue age.

- 29 -

Milliman

 

The vast majority of recent conversions have occurred at the end of the initial term period. The following table summarizes the amount of past end of term (EOT) conversions as of June 30, 2009.

 

	
Primerica Term Business (EOT Converted Business)

As of June 30, 2009

($ in millions)
	
 

	
 
	
 

	
Company
	
 
	
Block
	
 
	
Policy Count
	
 
	
 
	
Inforce Amount
	
 

	
Primerica Life
	
 
	
Direct
	
 
	
 
	
212,534
	
 
	
 
	
$
	
30,841
	
 

	
 
	
 
	
Coinsurance Ceded
	
 
	
 
	
187,608
	
 
	
 
	
 
	
9,252
	
 

	
 
	
 
	
YRT ceded
	
 
	
 
	
15,560
	
 
	
 
	
 
	
3,187
	
 

	
Net Primerica Life
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
$
	
18,402
	
 

Future Conversion

Future conversions are projected reflecting EOT conversions to the Custom IV product series, which is the product available for conversions. The conversion rate is based on a study from Primerica of conversions using EOT policies from November 2006 to June 2009. Assumptions for the conversion rate, conversion product distribution and the level of converted face amount are consistent with recent experience. Future conversions other than EOT are treated as persisting policyholders for purposes of modeling.

Based on the anticipated terms of the reinsurance agreement with PrimeRe, new EOT conversions and EOT renewals are assumed to revert to PLIC beginning in year 8 of the projections.

Waiver of Premium Rider

Approximately 40% of the policyholders elect a waiver of premium rider. The rider charges amounted to $39.2 million in 2007, which account for approximately 2% of the total premium. The total premium waived in the last twelve months was $17.4 million for the block.

Summary of Assumptions

A description of the primary actuarial assumptions is provided below.

Mortality

Primerica performs a very detailed mortality study annually. The study used for purposes of this analysis covered claim experience from 2001 up to December 31, 2008. The total claims in the study are $3.7 billion. The study tracks duration from original issue date only. Therefore, business which was converted to a new level term plan prior to June 30, 2009 would be treated as issued from its original date of underwriting and not from date of conversion.

The mortality study includes most of the coverages of Primerica. It excludes business beyond the level term period, IBR, and certain coverages where the data is not available. A separate study is performed for coverages beyond the level term period.

There are three primary underwriting (or mortality eras) for Primerica which are described as follows:

	
 
	
•
	
Pre 1992 Issues: This business was generally underwritten without blood testing. The underwriting classes are preferred non-smoker, standard non-smoker and smoker.

	
 
	
•
	
1992 – June 1999 Issues: In 1992 Primerica began underwriting with blood testing in order for a policy to qualify for the preferred class; as a result, the majority of cases were underwritten with blood testing. The blood testing indicator is not available in the data which is used for the mortality study, so the mortality study for this era combines the exposures for blood and non-blood tested policies. Primerica also switched to a tobacco/non-tobacco basis in this era.

- 30 -

Milliman

 

	
 
	
•
	
July 1999 and Later Issues: The underwriting is the same as the previous mortality era, however the blood testing indicator is available in the data allowing the mortality study to analyze results on a blood tested and non blood tested basis.

The mortality assumptions are based on our evaluation of the recent experience of Primerica, primarily through the company studies. The base mortality assumption is a multiple of the 1975-80 15 Year Select and Ultimate Table for each model cell. The multiple varies by mortality era, underwriting class, issue age and sex. For converted business, we have assumed point in scale mortality from the original issue date, mortality era and issue age.

Additionally, annual mortality improvement of 1% for fifteen years is assumed. Mortality anti-selection according to the Dukes-MacDonald methodology is assumed for persisting policies (both renewals and conversions) after the initial level term period.

Further detail on the mortality assumption is described in Appendix B.

Sensitivity testing of the results under changes to mortality rates is provided in Section II.

Lapse Rates

The lapse assumption is based upon a persistency study using inforce amounts from December 31, 2005 to June 30, 2009 along with Primerica’s recent experience study and pricing assumptions. Primerica’s persistency studies show a consistent pattern for historical lapses from year to year for the term business.

Lapse experience at the end of the initial level term period will depend on whether there is an ART or a level period following the current level term period. Additional lapses are assumed each time there is an increase in premium level after the initial level term period premium increase. Detailed lapse assumptions are described in Appendix B.

Sensitivity testing of the results to changes to lapse rates is provided in Section II.

Expenses

Unit expenses of $275 per policy for acquisition costs were developed based on Primerica’s pricing allowables. Maintenance unit costs of $42.50 per policy, plus 3% annual inflation, were based on target industry allowables.

Statutory Reserves

Statutory reserves have been calculated assuming reserves are calculated according to Primerica practices, which reflect Regulation XXX beginning in 2000 and a segmented basis prior to 2000. The total base statutory reserve after 1988 is equal to the interpolated terminal reserve plus an unearned premium liability for premiums already collected as of the valuation date but are not fully earned until after the valuation date. Issues in 1987 and prior were reserved on a mean basis. Reserves are semi-continuous.

The valuation mortality is equal to the 1958 CSO or 1980 CSO mortality prior to 2006, and 2001 CSO mortality thereafter. Interest rates vary by issue year depending on minimum regulatory requirements.

The valuation mortality for base reserves are smoker distinct and sex distinct, ultimate mortality tables for all policy years. The valuation mortality for deficiency reserves is based on select mortality including X-factors for non-EOT converted and non-converted policies. The ultimate mortality table is used for EOT converted deficiency reserve.

Tax Reserves

Tax reserves are calculated based on IRS requirements and Federally prescribed tax interest rates.

- 31 -

Milliman

 

Economic Reserve

The economic reserve is calculated on U.S. level term business only, excluding Child Term Rider, and reflects the base case assumptions as described in this report. Economic reserves are defined as:

	
 
	
•
	
Present value of future death claims, plus

	
 
	
•
	
Present value of future expenses and financing costs, less

	
 
	
•
	
Present value of future premiums including policy fee and modal loading

where the premiums, expenses and claims are all net of third party reinsurance. Reserve financing costs reflect 300 bp annual cost applied against the excess reserve. The economic reserve is calculated considering the level term period only. After the level term period, economic reserves are set equal to the statutory reserve, adjusted for applicable third party reinsurance. Present values were calculated by discounting at 5.71%.

Retained Asset Account

A liability of $286.5 million as of June 30, 2009 is booked by Primerica for death benefits retained for beneficiaries. We have assumed the projected liability to be a constant percentage of future death benefits and an interest spread throughout consistent with the Company’s current crediting rate practice.

 

 

- 32 -

Milliman

 

APPENDIX A

Asset and Investment Assumptions

Asset Portfolio as of June 30, 2009

The tables below summarize the asset portfolio by investment category. For purposes of this report, a 5.7% net investment earnings rate is assumed, based on the new money reinvestment strategy as well as the current market yield on the portfolios.

 

	
PLIC

Summary of Modeled Assets

as of June 30, 2009

(in millions)
	
 

	
 
	
 

	
Asset
	
 
	
Par
	
 
	
 
	
Book
	
 
	
 
	
Market
	
 
	
 
	
Coupon
Rate
	
 
	
 
	
Book
Yield
	
 
	
 
	
Market
Yield
	
 

	
Class
	
 
	
Value
	
 
	
 
	
Value
	
 
	
 
	
Value
	
 
	
 
	
(AnnEff)
	
 
	
 
	
(AnnEff)
	
 
	
 
	
(AnnEff)
	
 

	
Public Bond
	
 
	
$
	
2,188.4
	
 
	
 
	
$
	
2,150.2
	
 
	
 
	
$
	
2,141.7
	
 
	
 
	
 
	
5.89
	
%
	
 
	
 
	
6.34
	
%
	
 
	
 
	
6.14
	
%

	
Private Bond
	
 
	
 
	
946.5
	
 
	
 
	
 
	
932.3
	
 
	
 
	
898.0
	
 
	
 
	
 
	
5.93
	
 
	
 
	
 
	
6.28
	
 
	
 
	
 
	
6.64
	
 

	
Government
	
 
	
 
	
4.7
	
 
	
 
	
 
	
4.9
	
 
	
 
	
 
	
5.1
	
 
	
 
	
 
	
4.47
	
 
	
 
	
 
	
3.22
	
 
	
 
	
 
	
1.44
	
 

	
Preferred Stock
	
 
	
 
	
19.4
	
 
	
 
	
 
	
19.5
	
 
	
 
	
13.0
	
 
	
 
	
 
	
6.73
	
 
	
 
	
 
	
9.95
	
 
	
 
	
 
	
12.55
	
 

	
Passthrough
	
 
	
 
	
638.9
	
 
	
 
	
 
	
630.9
	
 
	
 
	
 
	
660.3
	
 
	
 
	
 
	
5.55
	
 
	
 
	
 
	
5.91
	
 
	
 
	
 
	
4.09
	
 

	
ABS
	
 
	
 
	
79.5
	
 
	
 
	
 
	
79.1
	
 
	
 
	
 
	
63.9
	
 
	
 
	
 
	
4.07
	
 
	
 
	
 
	
3.62
	
 
	
 
	
 
	
16.75
	
 

	
CMBS
	
 
	
 
	
416.7
	
 
	
 
	
 
	
416.3
	
 
	
 
	
 
	
354.8
	
 
	
 
	
 
	
5.42
	
 
	
 
	
 
	
5.33
	
 
	
 
	
 
	
9.02
	
 

	
CMO
	
 
	
 
	
501.3
	
 
	
 
	
 
	
492.1
	
 
	
 
	
 
	
478.2
	
 
	
 
	
 
	
5.50
	
 
	
 
	
 
	
5.83
	
 
	
 
	
 
	
7.61
	
 

	
MortLoan
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
Total
	
 
	
$
	
4,795.4
	
 
	
 
	
$
	
4,725.5
	
 
	
 
	
$
	
4,615.0
	
 
	
 
	
 
	
5.74
	
%
	
 
	
 
	
6.10
	
%
	
 
	
 
	
6.48
	
%

 

Reinvestment Assumptions

The strategy for the investment of net cash flow is summarized below. Spreads, shown in the following table, are consistent with corporate bond equivalent (semi-annual) yield. Net yields, after deduction of investment expenses and expected defaults, are shown on an annual effective basis.

 

	
Primerica

Investment Strategy Summary

As of June 30, 2009
	
 

	
 
	
 

	
Asset Class
	
 
	
Allocation
	
 
	
 
	
Maturity
	
 
	
 
	
Treasury
	
 
	
 
	
Gross 
Spread
	
 
	
 
	
Gross 
Yield 
(BEY)
	
 
	
 
	
Gross 
Yield 
(AEY)
	
 
	
 
	
Investment 
Expenses
	
 
	
 
	
Expected 
Defaults
	
 
	
 
	
Net 
Yield 
(AEY)
	
 

	
Public Bond, A
	
 
	
 
	
8.18
	
%
	
 
	
 
	
5
	
 
	
 
	
 
	
2.54
	
%
	
 
	
 
	
2.48
	
%
	
 
	
 
	
5.02
	
%
	
 
	
 
	
5.08
	
%
	
 
	
 
	
0.075
	
%
	
 
	
 
	
0.15
	
%
	
 
	
 
	
4.86
	
%

	
Public Bond, BBB
	
 
	
 
	
7.11
	
 
	
 
	
 
	
5
	
 
	
 
	
 
	
2.54
	
 
	
 
	
 
	
3.25
	
 
	
 
	
 
	
5.79
	
 
	
 
	
 
	
5.87
	
 
	
 
	
 
	
0.075
	
 
	
 
	
 
	
0.34
	
 
	
 
	
 
	
5.46
	
 

	
Public Bond, BB
	
 
	
 
	
2.49
	
 
	
 
	
 
	
5
	
 
	
 
	
 
	
2.54
	
 
	
 
	
 
	
6.12
	
 
	
 
	
 
	
8.66
	
 
	
 
	
 
	
8.84
	
 
	
 
	
 
	
0.075
	
 
	
 
	
 
	
1.23
	
 
	
 
	
 
	
7.54
	
 

	
Public Bond, A
	
 
	
 
	
9.40
	
 
	
 
	
 
	
10
	
 
	
 
	
 
	
3.53
	
 
	
 
	
 
	
2.44
	
 
	
 
	
 
	
5.97
	
 
	
 
	
 
	
6.06
	
 
	
 
	
 
	
0.075
	
 
	
 
	
 
	
0.15
	
 
	
 
	
 
	
5.83
	
 

	
Public Bond, BBB
	
 
	
 
	
8.18
	
 
	
 
	
 
	
10
	
 
	
 
	
 
	
3.53
	
 
	
 
	
 
	
3.18
	
 
	
 
	
 
	
6.71
	
 
	
 
	
 
	
6.82
	
 
	
 
	
 
	
0.075
	
 
	
 
	
 
	
0.34
	
 
	
 
	
 
	
6.41
	
 

	
Public Bond, BB
	
 
	
 
	
3.73
	
 
	
 
	
 
	
10
	
 
	
 
	
 
	
3.53
	
 
	
 
	
 
	
5.98
	
 
	
 
	
 
	
9.51
	
 
	
 
	
 
	
9.74
	
 
	
 
	
 
	
0.075
	
 
	
 
	
 
	
1.23
	
 
	
 
	
 
	
8.43
	
 

	
Public Bond, A
	
 
	
 
	
2.86
	
 
	
 
	
 
	
20
	
 
	
 
	
 
	
4.30
	
 
	
 
	
 
	
2.30
	
 
	
 
	
 
	
6.60
	
 
	
 
	
 
	
6.71
	
 
	
 
	
 
	
0.075
	
 
	
 
	
 
	
0.15
	
 
	
 
	
 
	
6.49
	
 

	
Public Bond, BBB
	
 
	
 
	
2.49
	
 
	
 
	
 
	
20
	
 
	
 
	
 
	
4.30
	
 
	
 
	
 
	
3.10
	
 
	
 
	
 
	
7.40
	
 
	
 
	
 
	
7.54
	
 
	
 
	
 
	
0.075
	
 
	
 
	
 
	
0.34
	
 
	
 
	
 
	
7.12
	
 

	
Private Bond, A
	
 
	
 
	
3.33
	
 
	
 
	
 
	
5
	
 
	
 
	
 
	
2.54
	
 
	
 
	
 
	
2.73
	
 
	
 
	
 
	
5.27
	
 
	
 
	
 
	
5.34
	
 
	
 
	
 
	
0.075
	
 
	
 
	
 
	
0.15
	
 
	
 
	
 
	
5.11
	
 

	
Private Bond, BBB
	
 
	
 
	
3.33
	
 
	
 
	
 
	
5
	
 
	
 
	
 
	
2.54
	
 
	
 
	
 
	
3.55
	
 
	
 
	
 
	
6.09
	
 
	
 
	
 
	
6.18
	
 
	
 
	
 
	
0.075
	
 
	
 
	
 
	
0.34
	
 
	
 
	
 
	
5.77
	
 

	
Private Bond, A
	
 
	
 
	
5.56
	
 
	
 
	
 
	
10
	
 
	
 
	
 
	
3.53
	
 
	
 
	
 
	
2.69
	
 
	
 
	
 
	
6.22
	
 
	
 
	
 
	
6.31
	
 
	
 
	
 
	
0.075
	
 
	
 
	
 
	
0.15
	
 
	
 
	
 
	
6.09
	
 

	
Private Bond, BBB
	
 
	
 
	
5.56
	
 
	
 
	
 
	
10
	
 
	
 
	
 
	
3.53
	
 
	
 
	
 
	
3.48
	
 
	
 
	
 
	
7.01
	
 
	
 
	
 
	
7.13
	
 
	
 
	
 
	
0.075
	
 
	
 
	
 
	
0.34
	
 
	
 
	
 
	
6.72
	
 

	
Private Bond, A
	
 
	
 
	
2.22
	
 
	
 
	
 
	
20
	
 
	
 
	
 
	
4.30
	
 
	
 
	
 
	
2.55
	
 
	
 
	
 
	
6.85
	
 
	
 
	
 
	
6.97
	
 
	
 
	
 
	
0.075
	
 
	
 
	
 
	
0.15
	
 
	
 
	
 
	
6.75
	
 

	
Private Bond, BBB
	
 
	
 
	
2.22
	
 
	
 
	
 
	
20
	
 
	
 
	
 
	
4.30
	
 
	
 
	
 
	
3.40
	
 
	
 
	
 
	
7.70
	
 
	
 
	
 
	
7.85
	
 
	
 
	
 
	
0.075
	
 
	
 
	
 
	
0.34
	
 
	
 
	
 
	
7.43
	
 

A-1

Milliman

 

 

Primerica 

Investment Strategy Summary 

As of June 30, 2009

 

	
Asset Class
	
 
	
Allocation
	
 
	
 
	
 
	
Maturity
	
 
	
 
	
Treasury
	
 
	
 
	
Gross

Spread
	
 
	
 
	
Gross

Yield

(BEY)
	
 
	
 
	
Gross

Yield

(AEY)
	
 
	
 
	
Investment

Expenses
	
 
	
 
	
Expected

Defaults
	
 
	
 
	
Net

Yield

(AEY)
	
 

	
ABS, AAA
	
 
	
 
	
4.44
	
% 
	
 
	
 
	
7
	
 
	
 
	
 
	
3.19
	
%
	
 
	
 
	
3.12
	
% 
	
 
	
 
	
6.31
	
%
	
 
	
 
	
6.41
	
% 
	
 
	
 
	
0.075
	
%
	
 
	
 
	
0.01
	
%
	
 
	
 
	
6.32
	
% 

	
ABS, AAA
	
 
	
1.11
	
 
	
 
	
 
	
30
	
 
	
 
	
4.32
	
 
	
 
	
1.99
	
 
	
 
	
6.31
	
 
	
 
	
6.41
	
 
	
 
	
0.075
	
 
	
 
	
0.01
	
 
	
 
	
6.32
	
 

	
CMBS, AAA
	
 
	
 
	
0.00
	
 
	
 
	
 
	
30
	
 
	
 
	
4.32
	
 
	
 
	
6.53
	
 
	
 
	
10.85
	
 
	
 
	
11.14
	
 
	
 
	
0.075
	
 
	
 
	
0.01
	
 
	
 
	
11.06
	
 

	
CMO, AAA
	
 
	
3.36
	
 
	
 
	
 
	
15
	
 
	
 
	
3.92
	
 
	
 
	
0.28
	
 
	
 
	
4.19
	
 
	
 
	
4.23
	
 
	
 
	
0.075
	
 
	
 
	
0.01
	
 
	
 
	
4.15
	
 

	
CMO, AAA
	
 
	
10.08
	
 
	
 
	
 
	
30
	
 
	
 
	
4.32
	
 
	
 
	
0.28
	
 
	
 
	
4.60
	
 
	
 
	
4.65
	
 
	
 
	
0.075
	
 
	
 
	
0.01
	
 
	
 
	
4.56
	
 

	
Passthrough, AAA
	
 
	
2.87
	
 
	
 
	
 
	
15
	
 
	
 
	
3.92
	
 
	
 
	
0.67
	
 
	
 
	
4.58
	
 
	
 
	
4.63
	
 
	
 
	
0.075
	
 
	
 
	
0.01
	
 
	
 
	
4.55
	
 

	
Passthrough, AAA
	
 
	
11.47
	
 
	
 
	
 
	
30
	
 
	
 
	
4.32
	
 
	
 
	
0.26
	
 
	
 
	
4.58
	
 
	
 
	
4.63
	
 
	
 
	
0.075
	
 
	
 
	
0.01
	
 
	
 
	
4.55
	
 

	
Total
	
 
	
 
	
100.00
	
%
	
 
	
 
	
14.5
	
 
	
 
	
 
	
3.55
	
%
	
 
	
 
	
2.37
	
% 
	
 
	
 
	
5.92
	
% 
	
 
	
 
	
6.02
	
% 
	
 
	
 
	
0.075
	
% 
	
 
	
 
	
0.23
	
% 
	
 
	
 
	
5.71
	
 %

 

For purposes of this analysis, the new money rate for U.S. business was assumed to be 5.70%. The yield on assets backing Primerica Canada general account liabilities was assumed to be 75 bp below the U.S. yields, producing an NIER of 4.95%.

Default Cost

Annual default costs are based on Moody’s Data, covering the period from 1920 through 2008.

 

	
Quality
	
 
	
Default Cost

	
Aaa
	
 
	
0.01%

	
Aa1
	
 
	
0.02%

	
Aa2
	
 
	
0.04

	
Aa3
	
 
	
0.09

	
A1
	
 
	
0.09%

	
A2
	
 
	
0.17

	
A3
	
 
	
0.22

	
Baa1
	
 
	
0.23%

	
Baa2
	
 
	
0.36

	
Baa3
	
 
	
0.46

	
Ba1
	
 
	
0.88%

	
Ba2
	
 
	
1.42

	
Ba3
	
 
	
1.97

	
B1
	
 
	
2.21%

	
B2
	
 
	
2.66

	
B3
	
 
	
2.83

	
Caa-C
	
 
	
4.63%

 

Investment Expenses

Investment expenses of 7.5 basis points are included.

A-2

Milliman

 

Treasury Yield Curve (Corporate Bond Equivalent)

The projections are based on the constant maturity Treasury yield curve as of June 30, 2009.

 

	
Yield Curves 

June 30, 2009
	
 

	
Maturity
	
 
	
Constant Maturity

Treasury
	
 
	
 
	
Corporate A-Rated
	
 

	
90-day
	
 
	
 
	
0.19%
	
 
	
 
	
 
	
0.79%
	
 

	
1 year
	
 
	
0.56
	
 
	
 
	
1.61
	
 

	
2 year
	
 
	
1.11
	
 
	
 
	
3.38
	
 

	
3 year
	
 
	
1.64
	
 
	
 
	
3.98
	
 

	
5 year
	
 
	
2.54
	
 
	
 
	
5.02
	
 

	
7 year
	
 
	
3.19
	
 
	
 
	
5.64
	
 

	
10 year
	
 
	
3.53
	
 
	
 
	
5.97
	
 

	
20 year
	
 
	
 
	
4.30
	
 
	
 
	
 
	
6.60
	
 

	
30 year
	
 
	
4.32
	
 
	
 
	
5.98
	
 

 

NAIC Risk Based Capital

The factors employed to illustrate future risk based capital amounts were developed from Primerica’s RBC workpapers at June 30, 2009, as follows:

Risk Based Capital Factors: Primerica Life and National Benefit

(100% of NAIC Company Action Level)

	
Risk

Component
	
 
	
 
	
 
	
Factor
	
 

	
 
	
Base
	
 
	
PLIC
	
 
	
 
	
NBL
	
 

	
C-1
	
 
	
General Account Liabilities
	
 
	
 
	
1.00%
	
 
	
 
	
 
	
2.05%
	
 

	
 
	
 
	
Reinsurance Reserve Credit
	
 
	
 
	
0.50
	
 
	
 
	
 
	
0.50
	
 

	
C-2
	
 
	
Individual Life Net Amount at Risk (Net)
	
 
	
 
	
0.06%
	
 
	
 
	
 
	
0.15%
	
 

	
 
	
 
	
NBL ST Disability Premium
	
 
	
 
	
—
	
 
	
 
	
 
	
10.00
	
 

	
C-3
	
 
	
Life Insurance Liabilities
	
 
	
 
	
0.75%
	
 
	
 
	
 
	
0.75%
	
 

	
C-4
	
 
	
Premium (Direct)
	
 
	
 
	
2.00%
	
 
	
 
	
 
	
2.00%
	
 

 

The projected required capital amounts at 100% NAIC Company Action Level are equal to 70% of the sum of C-1, C-2 and C-3 to reflect the impact of covariance for Primerica, plus 100% of C-4. The C-1 factors for PLIC and NBL reflect the underlying asset portfolio distributions, including size factors, after adjusting for the restructuring transactions.

The cost of capital calculation is based on the cost of retaining capital to support the liabilities of Primerica, assuming earnings on capital at the after-tax annual effective rate of 3.7%.

 

 

A-3

Milliman

 

APPENDIX B

Liability Models and Assumptions

Model of Term Business

The following tables summarize the model inforce for the term life business as of June 30, 2009 based on seriatim data provided by the Company.

The inforce amounts summarized below are from the seriatim extracts. There are minor differences due to reporting timing from the seriatim extract to the actual booked amounts as of June 30, 2009 which is summarized at the beginning of Section IV.

The model reflects quinquennial issue ages, sex, underwriting class and face bands.

Inforce for Company and Model Plan 

As of June 30, 2009 

($ in millions)

 

	
Company
	
 
	
Model

Plan
	
 
	
Plan Description
	
 
	
Modeled

Issue Age

Range
	
 
	
Policy

Count
	
 
	
 
	
Death

Benefit
	
 
	
 
	
YRT Rein

Amount
	
 
	
 
	
Coinsurance

Amount
	
 
	
 
	
Stat Base

Reserve
	
 
	
 
	
Tax

Reserve
	
 
	
 
	
Gross

Premium
	
 

	
Primerica
	
 
	
TCHD
	
 
	
Child Rider
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
$
	
17,371
	
 
	
 
	
 
	
—
	
 
	
 
	
$
	
13
	
 
	
 
	
$
	
30
	
 
	
 
	
$
	
30
	
 
	
 
	
$
	
64
	
 

	
Life
	
 
	
TRMJ
	
 
	
Mod 15
	
 
	
18-63
	
 
	
 
	
24,953
	
 
	
 
	
 
	
1,018
	
 
	
 
	
$
	
8
	
 
	
 
	
 
	
426
	
 
	
 
	
 
	
23
	
 
	
 
	
 
	
23
	
 
	
 
	
 
	
15
	
 

	
 
	
 
	
TRMK
	
 
	
Ultima Term Rider
	
 
	
23-53
	
 
	
 
	
289
	
 
	
 
	
 
	
816
	
 
	
 
	
 
	
1
	
 
	
 
	
 
	
278
	
 
	
 
	
 
	
12
	
 
	
 
	
 
	
12
	
 
	
 
	
 
	
8
	
 

	
 
	
 
	
TRML
	
 
	
Deer Term to 65
	
 
	
28-68
	
 
	
 
	
13,367
	
 
	
 
	
 
	
540
	
 
	
 
	
 
	
180
	
 
	
 
	
 
	
302
	
 
	
 
	
 
	
4
	
 
	
 
	
 
	
4
	
 
	
 
	
 
	
10
	
 

	
 
	
 
	
TRMM
	
 
	
CST T-95
	
 
	
23-58
	
 
	
 
	
20,686
	
 
	
 
	
 
	
2,228
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
1,093
	
 
	
 
	
 
	
23
	
 
	
 
	
 
	
23
	
 
	
 
	
 
	
30
	
 

	
 
	
 
	
TRMN
	
 
	
CST T-90
	
 
	
23-63
	
 
	
 
	
114,940
	
 
	
 
	
 
	
14,420
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
4,954
	
 
	
 
	
 
	
37
	
 
	
 
	
 
	
37
	
 
	
 
	
 
	
80
	
 

	
 
	
 
	
TRMO
	
 
	
Jumbo 10 Rider
	
 
	
23-53
	
 
	
 
	
—
	
 
	
 
	
 
	
1,806
	
 
	
 
	
 
	
161
	
 
	
 
	
 
	
344
	
 
	
 
	
 
	
11
	
 
	
 
	
 
	
10
	
 
	
 
	
 
	
6
	
 

	
 
	
 
	
TRMP
	
 
	
Banded CST
	
 
	
23-63
	
 
	
 
	
165,686
	
 
	
 
	
 
	
30,033
	
 
	
 
	
 
	
20
	
 
	
 
	
 
	
2,410
	
 
	
 
	
 
	
212
	
 
	
 
	
 
	
212
	
 
	
 
	
 
	
90
	
 

	
 
	
 
	
TRMQ
	
 
	
Eagle
	
 
	
23-53
	
 
	
 
	
229,588
	
 
	
 
	
 
	
48,143
	
 
	
 
	
 
	
22,166
	
 
	
 
	
 
	
475
	
 
	
 
	
 
	
536
	
 
	
 
	
 
	
531
	
 
	
 
	
 
	
164
	
 

	
 
	
 
	
TRMR
	
 
	
T-2000
	
 
	
18-63
	
 
	
 
	
40,561
	
 
	
 
	
 
	
8,673
	
 
	
 
	
 
	
6,371
	
 
	
 
	
 
	
26
	
 
	
 
	
 
	
168
	
 
	
 
	
 
	
144
	
 
	
 
	
 
	
21
	
 

	
 
	
 
	
TRMS
	
 
	
Custom A
	
 
	
23-53
	
 
	
 
	
95,223
	
 
	
 
	
 
	
26,416
	
 
	
 
	
 
	
21,738
	
 
	
 
	
 
	
386
	
 
	
 
	
 
	
300
	
 
	
 
	
 
	
291
	
 
	
 
	
 
	
86
	
 

	
 
	
 
	
TRMT
	
 
	
Custom B
	
 
	
23-65
	
 
	
 
	
172,368
	
 
	
 
	
 
	
49,441
	
 
	
 
	
 
	
38,088
	
 
	
 
	
 
	
2,233
	
 
	
 
	
 
	
527
	
 
	
 
	
 
	
514
	
 
	
 
	
 
	
152
	
 

	
 
	
 
	
TRMU
	
 
	
Custom Plus
	
 
	
23-68
	
 
	
 
	
176,843
	
 
	
 
	
 
	
59,855
	
 
	
 
	
 
	
51,242
	
 
	
 
	
 
	
365
	
 
	
 
	
 
	
558
	
 
	
 
	
 
	
544
	
 
	
 
	
 
	
156
	
 

	
 
	
 
	
TRMV
	
 
	
Custom IV
	
 
	
18-68
	
 
	
 
	
647,145
	
 
	
 
	
 
	
188,636
	
 
	
 
	
 
	
138,746
	
 
	
 
	
 
	
7,349
	
 
	
 
	
 
	
894
	
 
	
 
	
 
	
889
	
 
	
 
	
 
	
590
	
 

	
 
	
 
	
TRMW
	
 
	
Custome Advantage
	
 
	
18-68
	
 
	
 
	
283,385
	
 
	
 
	
 
	
85,876
	
 
	
 
	
 
	
75,959
	
 
	
 
	
 
	
404
	
 
	
 
	
 
	
45
	
 
	
 
	
 
	
45
	
 
	
 
	
 
	
225
	
 

	
Total Primerica Life
	
 
	
 
	
 
	
 
	
 
	
 
	
1,985,034
	
 
	
 
	
$
	
535,272
	
 
	
 
	
$
	
354,681
	
 
	
 
	
$
	
21,058
	
 
	
 
	
$
	
3,380
	
 
	
 
	
$
	
3,309
	
 
	
 
	
$
	
1,697
	
 

 

Additional reserves on the US block include:

 

	
Primerica Life 

(in millions)
	
 

	
Deficiency Reserve
	
 
	
$
	
855
	
 

 

B-1

Milliman

 

EOT Conversion

The table on the previous page reflects all business, including end of term (EOT) conversions. As of June 30, 2009, the EOT converted business in the term life block is as follows:

Past Conversion - EOT 

As of June 30, 2009

($ in millions)

 

	
Company
	
 
	
Model

Plan
	
 
	
Plan Description
	
 
	
Policy

Count
	
 
	
 
	
Death

Benefit
	
 
	
 
	
YRT Rein

Amount
	
 
	
 
	
Coinsurance

Amount
	
 
	
 
	
Stat Base

Reserve
	
 
	
 
	
Tax

Reserve
	
 
	
 
	
Gross

Premium
	
 

	
Primerica
	
 
	
TCHD
	
 
	
Child Rider
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
Life
	
 
	
TRMJ
	
 
	
Mod 15
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
 
	
 
	
TRMK
	
 
	
Ultima Term Rider
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
 
	
 
	
TRML
	
 
	
Deer Term to 65
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
 
	
 
	
TRMM
	
 
	
CST T-95
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
 
	
 
	
TRMN
	
 
	
CST T-90
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
 
	
 
	
TRMO
	
 
	
Jumbo 10 Rider
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
 
	
 
	
TRMP
	
 
	
Banded CST
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
 
	
 
	
TRMQ
	
 
	
Eagle
	
 
	
 
	
2
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
—
	
 

	
 
	
 
	
TRMR
	
 
	
T-2000
	
 
	
$
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
 
	
 
	
TRMS
	
 
	
Custom A
	
 
	
 
	
332
	
 
	
 
	
 
	
43
	
 
	
 
	
 
	
1
	
 
	
 
	
 
	
22
	
 
	
 
	
 
	
1
	
 
	
 
	
 
	
1
	
 
	
 
	
 
	
—
	
 

	
 
	
 
	
TRMT
	
 
	
Custom B
	
 
	
 
	
35,064
	
 
	
 
	
 
	
4,519
	
 
	
 
	
 
	
17
	
 
	
 
	
 
	
1,764
	
 
	
 
	
 
	
78
	
 
	
 
	
 
	
77
	
 
	
 
	
 
	
29
	
 

	
 
	
 
	
TRMU
	
 
	
Custom Plus
	
 
	
 
	
5,387
	
 
	
 
	
 
	
908
	
 
	
 
	
 
	
15
	
 
	
 
	
 
	
186
	
 
	
 
	
 
	
18
	
 
	
 
	
 
	
18
	
 
	
 
	
 
	
6
	
 

	
 
	
 
	
TRMV
	
 
	
Custom IV
	
 
	
 
	
164,083
	
 
	
 
	
 
	
24,022
	
 
	
 
	
 
	
2,976
	
 
	
 
	
 
	
6,918
	
 
	
 
	
 
	
97
	
 
	
 
	
 
	
97
	
 
	
 
	
 
	
164
	
 

	
 
	
 
	
TRMW
	
 
	
Custome

Advantage
	
 
	
 
	
7,666
	
 
	
 
	
 
	
1,349
	
 
	
 
	
 
	
178
	
 
	
 
	
 
	
363
	
 
	
 
	
 
	
3
	
 
	
 
	
 
	
3
	
 
	
 
	
 
	
8
	
 

	
Total Primerica Life
	
 
	
$
	
212,534
	
 
	
 
	
$
	
30,841
	
 
	
 
	
$
	
3,187
	
 
	
 
	
$
	
9,252
	
 
	
 
	
$
	
197
	
 
	
 
	
$
	
195
	
 
	
 
	
$
	
207
	
 

 

Future Business

100% of the future business production including riders (Spouse, CTR, Waiver and IBR) is assumed to be the Custom Advantage product.

Distribution of the Inforce

Distribution for the term life block by key characteristics are summarized below.

B-2

Milliman

 

Primerica Life

Inforce for Company and Model Term Period

As of June 30, 2009

($ in millions)

 

	
Term Period
	
 
	
Death

Benefit
	
 
	
 
	
YRT

Reinsurance

Amount
	
 
	
 
	
Coinsurance

Amount
	
 
	
 
	
Net Death

Benefit
	
 

	
5 Year
	
 
	
$
	
134.0
	
 
	
 
	
$
	
9.6
	
 
	
 
	
$
	
44.2
	
 
	
 
	
$
	
80.2
	
 

	
10 Year
	
 
	
 
	
64,282.4
	
 
	
 
	
 
	
37,143.7
	
 
	
 
	
 
	
6,626.3
	
 
	
 
	
 
	
20,512.4
	
 

	
15 Year
	
 
	
 
	
44,850.0
	
 
	
 
	
 
	
30,429.1
	
 
	
 
	
 
	
2,698.6
	
 
	
 
	
 
	
11,722.3
	
 

	
20 Year
	
 
	
 
	
239,867.5
	
 
	
 
	
 
	
144,189.4
	
 
	
 
	
 
	
11,065.7
	
 
	
 
	
 
	
84,612.4
	
 

	
25 Year
	
 
	
 
	
72,818.7
	
 
	
 
	
 
	
61,397.4
	
 
	
 
	
 
	
254.7
	
 
	
 
	
 
	
11,166.6
	
 

	
30 Year
	
 
	
 
	
69,679.9
	
 
	
 
	
 
	
59,547.3
	
 
	
 
	
 
	
50.6
	
 
	
 
	
 
	
10,082.1
	
 

	
35 Year
	
 
	
 
	
25,728.7
	
 
	
 
	
 
	
21,783.8
	
 
	
 
	
 
	
2.7
	
 
	
 
	
 
	
3,942.3
	
 

	
Deer to Age 65
	
 
	
 
	
408.6
	
 
	
 
	
 
	
136.0
	
 
	
 
	
 
	
248.5
	
 
	
 
	
 
	
24.2
	
 

	
15 Year Deer
	
 
	
 
	
131.7
	
 
	
 
	
 
	
44.3
	
 
	
 
	
 
	
53.7
	
 
	
 
	
 
	
33.7
	
 

	
Child Rider
	
 
	
 
	
17,370.9
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
13.3
	
 
	
 
	
 
	
17,357.6
	
 

	
Total Primerica Life
	
 
	
$
	
535,272.5
	
 
	
 
	
$
	
354,680.6
	
 
	
 
	
$
	
21,058.1
	
 
	
 
	
$
	
159,533.8
	
 

 

Primerica Life

Inforce for Company and Model Issue Ages

As of June 30, 2009

($ in millions)

 

	
Model Issue Ages
	
 
	
Death

Benefit
	
 
	
 
	
YRT

Reinsurance

Amount
	
 
	
 
	
Coinsurance

Amount
	
 
	
 
	
Net Death Benefit
	
 

	
Child Rider
	
 
	
$
	
17,370.9
	
 
	
 
	
$
	
—
	
 
	
 
	
$
	
13.3
	
 
	
 
	
$
	
17,357.6
	
 

	
18
	
 
	
 
	
1,366.2
	
 
	
 
	
 
	
1,134.2
	
 
	
 
	
 
	
24.7
	
 
	
 
	
 
	
207.3
	
 

	
23
	
 
	
 
	
40,428.3
	
 
	
 
	
 
	
29,762.8
	
 
	
 
	
 
	
876.2
	
 
	
 
	
 
	
9,789.3
	
 

	
28
	
 
	
 
	
96,135.0
	
 
	
 
	
 
	
67,966.7
	
 
	
 
	
 
	
2,340.5
	
 
	
 
	
 
	
25,827.7
	
 

	
33
	
 
	
 
	
120,111.4
	
 
	
 
	
 
	
83,906.0
	
 
	
 
	
 
	
3,050.1
	
 
	
 
	
 
	
33,155.3
	
 

	
38
	
 
	
 
	
100,343.7
	
 
	
 
	
 
	
71,372.1
	
 
	
 
	
 
	
2,571.0
	
 
	
 
	
 
	
26,400.7
	
 

	
43
	
 
	
 
	
69,219.8
	
 
	
 
	
 
	
48,977.0
	
 
	
 
	
 
	
2,570.5
	
 
	
 
	
 
	
17,672.4
	
 

	
48
	
 
	
 
	
44,442.6
	
 
	
 
	
 
	
28,465.9
	
 
	
 
	
 
	
3,300.7
	
 
	
 
	
 
	
12,676.0
	
 

	
53
	
 
	
 
	
27,217.3
	
 
	
 
	
 
	
14,812.6
	
 
	
 
	
 
	
3,328.1
	
 
	
 
	
 
	
9,076.7
	
 

	
58
	
 
	
 
	
12,442.2
	
 
	
 
	
 
	
5,892.1
	
 
	
 
	
 
	
1,857.6
	
 
	
 
	
 
	
4,692.6
	
 

	
63
	
 
	
 
	
4,640.4
	
 
	
 
	
 
	
1,932.7
	
 
	
 
	
 
	
788.7
	
 
	
 
	
 
	
1,918.9
	
 

	
68
	
 
	
 
	
1,554.7
	
 
	
 
	
 
	
458.6
	
 
	
 
	
 
	
336.8
	
 
	
 
	
 
	
759.2
	
 

	
Total Primerica Life
	
 
	
$
	
535,272.5
	
 
	
 
	
$
	
354,680.6
	
 
	
 
	
$
	
21,058.1
	
 
	
 
	
$
	
159,533.8
	
 

 

B-3

Milliman

 

Primerica Life

Inforce for Company and Smoking Class

As of June 30, 2009

($ in millions)

 

	
Model

Smoking

Class
	
 
	
Model Smoking Class
	
 
	
Death

Benefit
	
 
	
 
	
YRT

Reinsurance

Amount
	
 
	
 
	
Coinsurance

Amount
	
 
	
 
	
Net Death

Benefit
	
 

	
Pre

1/1/92
	
 
	
Super Preferred NS
	
 
	
$
	
244.3
	
 
	
 
	
 
	
—
	
 
	
 
	
$
	
73.7
	
 
	
 
	
$
	
170.6
	
 

	
 
	
 
	
Preferred NS
	
 
	
 
	
13,870.2
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
3,462.3
	
 
	
 
	
 
	
10,407.9
	
 

	
 
	
 
	
Standard NS
	
 
	
 
	
53,844.6
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
15,856.7
	
 
	
 
	
 
	
37,987.9
	
 

	
 
	
 
	
Smoker
	
 
	
 
	
3,766.8
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
1,018.4
	
 
	
 
	
 
	
2,748.4
	
 

	
 
	
 
	
Child Rider
	
 
	
 
	
1,552.5
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
13.3
	
 
	
 
	
 
	
1,539.2
	
 

	
Pre

7/1/99
	
 
	
Super Preferred NS
	
 
	
$
	
157.0
	
 
	
 
	
$
	
94.9
	
 
	
 
	
$
	
0.3
	
 
	
 
	
$
	
61.9
	
 

	
 
	
 
	
Preferred NS
	
 
	
 
	
20,464.4
	
 
	
 
	
 
	
10,391.1
	
 
	
 
	
 
	
35.8
	
 
	
 
	
 
	
10,037.4
	
 

	
 
	
 
	
Standard NS
	
 
	
 
	
68,393.3
	
 
	
 
	
 
	
38,010.7
	
 
	
 
	
 
	
214.5
	
 
	
 
	
 
	
30,168.1
	
 

	
 
	
 
	
Smoker
	
 
	
 
	
7,968.7
	
 
	
 
	
 
	
4,374.2
	
 
	
 
	
 
	
15.0
	
 
	
 
	
 
	
3,579.4
	
 

	
 
	
 
	
Child Rider
	
 
	
 
	
3,207.8
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
3,207.8
	
 

	
Post

7/1/99
	
 
	
Blood Tested Super Preferred NS
	
 
	
$
	
14,328.3
	
 
	
 
	
$
	
12,866.0
	
 
	
 
	
$
	
3.6
	
 
	
 
	
$
	
1,458.7
	
 

	
 
	
 
	
Blood Tested Preferred NS
	
 
	
 
	
83,295.2
	
 
	
 
	
 
	
71,551.8
	
 
	
 
	
 
	
48.0
	
 
	
 
	
 
	
11,695.5
	
 

	
 
	
 
	
Blood Tested Standard NS
	
 
	
 
	
142,670.7
	
 
	
 
	
 
	
122,897.2
	
 
	
 
	
 
	
65.3
	
 
	
 
	
 
	
19,708.2
	
 

	
 
	
 
	
Blood Tested Smoker
	
 
	
 
	
11,844.1
	
 
	
 
	
 
	
10,244.2
	
 
	
 
	
 
	
3.7
	
 
	
 
	
 
	
1,596.2
	
 

	
 
	
 
	
Non-Blood Tested Standard NS
	
 
	
 
	
82,013.9
	
 
	
 
	
 
	
71,186.9
	
 
	
 
	
 
	
228.7
	
 
	
 
	
 
	
10,598.2
	
 

	
 
	
 
	
Non-Blood Tested Smoker
	
 
	
 
	
15,040.2
	
 
	
 
	
 
	
13,063.6
	
 
	
 
	
 
	
18.8
	
 
	
 
	
 
	
1,957.8
	
 

	
 
	
 
	
Child Rider
	
 
	
 
	
12,610.6
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
12,610.6
	
 

	
Total Primerica Life
	
 
	
$
	
535,272.5
	
 
	
 
	
$
	
354,680.6
	
 
	
 
	
$
	
21,058.1
	
 
	
 
	
$
	
159,533.8
	
 

 

B-4

Milliman

 

Primerica Life

Inforce for Company and Model Issue Years

As of June 30, 2009

($ in millions)

 

	
Model

Issue Years
	
 
	
Death

Benefit
	
 
	
 
	
YRT

Reinsurance

Amount
	
 
	
 
	
Coinsurance

Amount
	
 
	
 
	
Net Death

Benefit
	
 

	
1980
	
 
	
$
	
9.7
	
 
	
 
	
 
	
—
	
 
	
 
	
$
	
4.3
	
 
	
 
	
$
	
5.4
	
 

	
1981
	
 
	
 
	
46.1
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
30.1
	
 
	
 
	
 
	
16.0
	
 

	
1982
	
 
	
 
	
124.9
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
55.2
	
 
	
 
	
 
	
69.7
	
 

	
1983
	
 
	
 
	
280.3
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
79.5
	
 
	
 
	
 
	
200.8
	
 

	
1984
	
 
	
 
	
363.8
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
111.3
	
 
	
 
	
 
	
252.5
	
 

	
1985
	
 
	
 
	
569.7
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
272.1
	
 
	
 
	
 
	
297.6
	
 

	
1986
	
 
	
 
	
780.7
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
317.7
	
 
	
 
	
 
	
463.0
	
 

	
1987
	
 
	
 
	
1,360.8
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
686.0
	
 
	
 
	
 
	
674.8
	
 

	
1988
	
 
	
 
	
1,775.4
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
889.9
	
 
	
 
	
 
	
885.4
	
 

	
1989
	
 
	
 
	
8,127.0
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
3,567.9
	
 
	
 
	
 
	
4,559.1
	
 

	
1990
	
 
	
 
	
15,199.7
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
2,762.6
	
 
	
 
	
 
	
12,437.1
	
 

	
1991
	
 
	
 
	
11,250.8
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
545.1
	
 
	
 
	
 
	
10,705.7
	
 

	
1992
	
 
	
 
	
11,596.9
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
390.0
	
 
	
 
	
 
	
11,206.9
	
 

	
1993
	
 
	
 
	
11,050.9
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
212.6
	
 
	
 
	
 
	
10,838.4
	
 

	
1994
	
 
	
 
	
12,597.6
	
 
	
 
	
$
	
3,936.9
	
 
	
 
	
 
	
127.2
	
 
	
 
	
 
	
8,533.5
	
 

	
1995
	
 
	
 
	
12,334.9
	
 
	
 
	
 
	
7,900.5
	
 
	
 
	
 
	
71.6
	
 
	
 
	
 
	
4,362.8
	
 

	
1996
	
 
	
 
	
12,234.5
	
 
	
 
	
 
	
8,461.7
	
 
	
 
	
 
	
54.6
	
 
	
 
	
 
	
3,718.2
	
 

	
1997
	
 
	
 
	
12,113.6
	
 
	
 
	
 
	
9,366.2
	
 
	
 
	
 
	
82.4
	
 
	
 
	
 
	
2,665.1
	
 

	
1998
	
 
	
 
	
13,558.9
	
 
	
 
	
 
	
10,830.6
	
 
	
 
	
 
	
174.6
	
 
	
 
	
 
	
2,553.7
	
 

	
1999
	
 
	
 
	
17,243.6
	
 
	
 
	
 
	
13,316.9
	
 
	
 
	
 
	
444.7
	
 
	
 
	
 
	
3,482.0
	
 

	
2000
	
 
	
 
	
26,087.3
	
 
	
 
	
 
	
19,369.2
	
 
	
 
	
 
	
1,448.4
	
 
	
 
	
 
	
5,269.7
	
 

	
2001
	
 
	
 
	
28,464.7
	
 
	
 
	
 
	
22,116.0
	
 
	
 
	
 
	
742.4
	
 
	
 
	
 
	
5,606.4
	
 

	
2002
	
 
	
 
	
31,850.6
	
 
	
 
	
 
	
26,631.2
	
 
	
 
	
 
	
140.6
	
 
	
 
	
 
	
5,078.8
	
 

	
2003
	
 
	
 
	
35,291.5
	
 
	
 
	
 
	
29,342.7
	
 
	
 
	
 
	
150.7
	
 
	
 
	
 
	
5,798.2
	
 

	
2004
	
 
	
 
	
41,445.9
	
 
	
 
	
 
	
34,577.3
	
 
	
 
	
 
	
154.0
	
 
	
 
	
 
	
6,714.6
	
 

	
2005
	
 
	
 
	
39,776.4
	
 
	
 
	
 
	
33,204.2
	
 
	
 
	
 
	
164.3
	
 
	
 
	
 
	
6,407.9
	
 

	
2006
	
 
	
 
	
43,419.7
	
 
	
 
	
 
	
33,291.0
	
 
	
 
	
 
	
913.5
	
 
	
 
	
 
	
9,215.2
	
 

	
2007
	
 
	
 
	
53,249.2
	
 
	
 
	
 
	
32,981.5
	
 
	
 
	
 
	
2,200.9
	
 
	
 
	
 
	
18,066.7
	
 

	
2008
	
 
	
 
	
61,452.3
	
 
	
 
	
 
	
45,565.6
	
 
	
 
	
 
	
2,895.1
	
 
	
 
	
 
	
12,991.6
	
 

	
2009
	
 
	
 
	
31,614.7
	
 
	
 
	
 
	
23,789.1
	
 
	
 
	
 
	
1,368.7
	
 
	
 
	
 
	
6,457.0
	
 

	
Total Primerica Life
	
 
	
$
	
535,272.5
	
 
	
 
	
$
	
354,680.6
	
 
	
 
	
$
	
21,058.1
	
 
	
 
	
$
	
159,533.8
	
 

 

B-5

Milliman

 

Inforce for Company and Face Amount Per Life

As of June 30, 2009

($ in millions)

 

	
Size
	
 
	
Death

Benefit
	
 
	
 
	
YRT

Reinsurance

Amount
	
 
	
 
	
Coinsurance

Amount
	
 
	
 
	
Net Death

Benefit
	
 

	
$0 - $100k
	
 
	
$
	
96,200
	
 
	
 
	
$
	
31,426
	
 
	
 
	
$
	
10,937
	
 
	
 
	
$
	
53,837
	
 

	
$100k - $250k
	
 
	
 
	
191,922
	
 
	
 
	
 
	
125,942
	
 
	
 
	
 
	
8,101
	
 
	
 
	
 
	
57,879
	
 

	
$250k - $500k
	
 
	
 
	
169,226
	
 
	
 
	
 
	
133,662
	
 
	
 
	
 
	
1,588
	
 
	
 
	
 
	
33,976
	
 

	
$500k - $750k
	
 
	
 
	
47,395
	
 
	
 
	
 
	
39,368
	
 
	
 
	
 
	
152
	
 
	
 
	
 
	
7,874
	
 

	
$750k - $1M
	
 
	
 
	
18,574
	
 
	
 
	
 
	
15,189
	
 
	
 
	
 
	
198
	
 
	
 
	
 
	
3,187
	
 

	
$1M - $1.5M
	
 
	
 
	
8,045
	
 
	
 
	
 
	
6,544
	
 
	
 
	
 
	
50
	
 
	
 
	
 
	
1,451
	
 

	
$1.5M - $2M
	
 
	
 
	
1,997
	
 
	
 
	
 
	
1,434
	
 
	
 
	
 
	
22
	
 
	
 
	
 
	
541
	
 

	
$2M - $2.5M
	
 
	
 
	
757
	
 
	
 
	
 
	
498
	
 
	
 
	
 
	
5
	
 
	
 
	
 
	
253
	
 

	
$2.5M - $3M
	
 
	
 
	
435
	
 
	
 
	
 
	
261
	
 
	
 
	
 
	
4
	
 
	
 
	
 
	
170
	
 

	
$3M - $3.5M
	
 
	
 
	
185
	
 
	
 
	
 
	
95
	
 
	
 
	
 
	
0
	
 
	
 
	
 
	
90
	
 

	
$3.5M - $4M
	
 
	
 
	
129
	
 
	
 
	
 
	
64
	
 
	
 
	
 
	
1
	
 
	
 
	
 
	
64
	
 

	
Above $4M
	
 
	
 
	
409
	
 
	
 
	
 
	
196
	
 
	
 
	
 
	
0
	
 
	
 
	
 
	
212
	
 

	
Total Company
	
 
	
$
	
535,272
	
 
	
 
	
$
	
354,681
	
 
	
 
	
$
	
21,058
	
 
	
 
	
$
	
159,534
	
 

 

Actuarial Assumptions

Mortality

	
 
	
A.
	
Mortality Table

For the US block, the assumed mortality is based on the 15 year SOA 75-80 S&U ANB table, except the Child Rider plan which is based on the Ultimate 75-80 ANB table.

For the Canadian block, the assumed mortality is based on the 15 year CIA 86-92 S&U ANB table, except the Child Rider plan which is based on the Ultimate 86-92 ANB table.

	
 
	
B.
	
Mortality Scaling Factors

	
 
	
i.
	
Class Specific

% of the 75-80 – 15 Year S&U Table

100% of Ultimate Table for Child Rider

 

	
 
	
 
	
Prior to 1992
	
 
	
1/1/1992 to 6/30/1999
	
 
	
7/1/1999 + (3 Class) Excluding
	
 
	
Custom Advantage

	
 
	
 
	
 
	
 
	
 
	
 
	
Blood Tested
	
 
	
Non-Blood Tested

	
 
	
 
	
PNS
	
 
	
SNS
	
 
	
SM
	
 
	
PNS
	
 
	
SNS
	
 
	
SM
	
 
	
PNS
	
 
	
SNS
	
 
	
SM
	
 
	
SNS
	
 
	
SM

	
 
	
 
	
M
	
 
	
F
	
 
	
M
	
 
	
F
	
 
	
M
	
 
	
F
	
 
	
M
	
 
	
F
	
 
	
M
	
 
	
F
	
 
	
M
	
 
	
F
	
 
	
M
	
 
	
F
	
 
	
M
	
 
	
F
	
 
	
M
	
 
	
F
	
 
	
M
	
 
	
F
	
 
	
M
	
 
	
F

	
18-23
	
 
	
45
	
 
	
45
	
 
	
70
	
 
	
70
	
 
	
115
	
 
	
115
	
 
	
50
	
 
	
50
	
 
	
70
	
 
	
70
	
 
	
95
	
 
	
95
	
 
	
35
	
 
	
38
	
 
	
44
	
 
	
44
	
 
	
80
	
 
	
83
	
 
	
90
	
 
	
90
	
 
	
105
	
 
	
110

	
28
	
 
	
45
	
 
	
45
	
 
	
65
	
 
	
65
	
 
	
115
	
 
	
115
	
 
	
50
	
 
	
50
	
 
	
65
	
 
	
65
	
 
	
95
	
 
	
95
	
 
	
35
	
 
	
38
	
 
	
44
	
 
	
44
	
 
	
80
	
 
	
83
	
 
	
85
	
 
	
85
	
 
	
105
	
 
	
110

	
33
	
 
	
33
	
 
	
36
	
 
	
56
	
 
	
56
	
 
	
115
	
 
	
115
	
 
	
32
	
 
	
34
	
 
	
52
	
 
	
52
	
 
	
95
	
 
	
95
	
 
	
29
	
 
	
32
	
 
	
44
	
 
	
44
	
 
	
80
	
 
	
83
	
 
	
60
	
 
	
60
	
 
	
105
	
 
	
110

	
38
	
 
	
33
	
 
	
36
	
 
	
56
	
 
	
56
	
 
	
115
	
 
	
115
	
 
	
32
	
 
	
34
	
 
	
52
	
 
	
52
	
 
	
100
	
 
	
100
	
 
	
29
	
 
	
32
	
 
	
44
	
 
	
44
	
 
	
80
	
 
	
83
	
 
	
58
	
 
	
58
	
 
	
105
	
 
	
110

	
43
	
 
	
33
	
 
	
36
	
 
	
56
	
 
	
56
	
 
	
115
	
 
	
115
	
 
	
32
	
 
	
34
	
 
	
52
	
 
	
52
	
 
	
100
	
 
	
100
	
 
	
29
	
 
	
32
	
 
	
44
	
 
	
44
	
 
	
80
	
 
	
83
	
 
	
58
	
 
	
58
	
 
	
110
	
 
	
115

	
48
	
 
	
33
	
 
	
36
	
 
	
56
	
 
	
56
	
 
	
125
	
 
	
125
	
 
	
32
	
 
	
34
	
 
	
52
	
 
	
52
	
 
	
120
	
 
	
120
	
 
	
29
	
 
	
32
	
 
	
44
	
 
	
44
	
 
	
100
	
 
	
100
	
 
	
58
	
 
	
55
	
 
	
130
	
 
	
140

	
53
	
 
	
50
	
 
	
58
	
 
	
75
	
 
	
75
	
 
	
140
	
 
	
140
	
 
	
40
	
 
	
40
	
 
	
55
	
 
	
55
	
 
	
130
	
 
	
130
	
 
	
35
	
 
	
38
	
 
	
44
	
 
	
44
	
 
	
110
	
 
	
110
	
 
	
80
	
 
	
80
	
 
	
150
	
 
	
160

	
58
	
 
	
60
	
 
	
63
	
 
	
80
	
 
	
80
	
 
	
150
	
 
	
150
	
 
	
50
	
 
	
50
	
 
	
60
	
 
	
60
	
 
	
140
	
 
	
140
	
 
	
45
	
 
	
48
	
 
	
50
	
 
	
50
	
 
	
125
	
 
	
125
	
 
	
95
	
 
	
95
	
 
	
170
	
 
	
180

	
63
	
 
	
60
	
 
	
63
	
 
	
100
	
 
	
100
	
 
	
165
	
 
	
165
	
 
	
50
	
 
	
55
	
 
	
80
	
 
	
80
	
 
	
150
	
 
	
150
	
 
	
45
	
 
	
48
	
 
	
55
	
 
	
55
	
 
	
125
	
 
	
125
	
 
	
95
	
 
	
95
	
 
	
180
	
 
	
190

	
68
	
 
	
65
	
 
	
68
	
 
	
105
	
 
	
105
	
 
	
170
	
 
	
170
	
 
	
50
	
 
	
55
	
 
	
90
	
 
	
90
	
 
	
160
	
 
	
160
	
 
	
45
	
 
	
48
	
 
	
65
	
 
	
60
	
 
	
125
	
 
	
125
	
 
	
95
	
 
	
95
	
 
	
190
	
 
	
200

 

B-6

Milliman

 

Multiples to the above:

	
 
	
A.
	
Certain smoker class policyholders in the mortality study are considered nonsmoker in the seriatim file for premium purposes. The smoker and SNS mortality rates are increased by the following to adjust for this discrepancy.
	
 

 

		
	
 
	
SM/SNS

	
Prior to 92
	
103%

	
1/1/92 to 6/30/99
	
102

	
7/1/99+
	
101

 

	
 
	
B.
	
Since the mortality study was based on the data with historical exposures without mortality improvement, an additional multiple (0.99) 2.5 is applied to reflect mortality improvement between mid-point of the study years and the start of the projection.
	
 

	
 
	
ii.
	
First Year Adjustment 120%

	
 
	
iii.
	
Substandard

101.6% applied to all policies to reflect weighted average table weighting.

 

	
 
	
iv.
	
Custom Advantage has a new “preferred plus” underwriting class. The mortality factors for Custom Advantage are based on the factors of 3 class policies after July 1, 1999, with the following adjustments:

 

	
Preferred Plus
	
:
	
95.2% of PNS

	
Non Smoker
	
 
	
 

	
Preferred
	
:
	
105.8% of PNS

	
Non Smoker
	
 
	
 

	
Standard
	
:
	
100% of SNS

	
Non-Smoker
	
 
	
 

	
Standard
	
:
	
100% of SM

	
Smoker
	
 
	
 

	
C.
	
Mortality Improvement

1% for 15 years from the beginning of the projection

	
D.
	
Mortality Anti-Selection

Mortality anti-selection on level premium term products after the initial level term period was reflected based on the assumption that the high level of expected lapse at the end of the level premium period will include a disproportionate share of healthy lives resulting in increased mortality for the remaining lives. We calculated the impact of this anticipated mortality anti-selection using “Dukes/MacDonald theory” with an assumption that 80% of lapses in excess of a base lapse rate of 10% exhibit newly select mortality. Sample mortality anti-selection multiples are shown below for an original issue age 43 non-smoker, with an initial shock lapse of 30% for a 10 year plan and 40% for a 20 year plan.

 

	
Issue Age 45

	
Year After Level Premium Period
	
 
	
10 Year Plan
	
 
	
15 Year Plan

	
1
	
 
	
122%
	
 
	
131%

	
2
	
 
	
119
	
 
	
128

	
5
	
 
	
115
	
 
	
120

	
10
	
 
	
110
	
 
	
116

	
15
	
 
	
107
	
 
	
107

 

A scalar of 110% grading to 100% over fifteen years is applied on subsequent premium increases due to renewal or due to an initial increase going to ART.

B-7

Milliman

 

Lapses

	
A.
	
Lapse experience varies by whether or not a policy is an EOT conversion. Base lapse rates in the level term period for the non-converted and the non-EOT converted policies are shown in the table below.

 

	
US Block

	
 
	
 
	
 
	
 
	
Level Term (Excluding EOT Converted)

	
 
	
 
	
 
	
 
	
Blood Tested
	
 
	
Non-Blood Tested

	
Policy
	
 
	
Child
	
 
	
PNT
	
 
	
SNT
	
 
	
SM
	
 
	
SNT
	
 
	
SM

	
Year
	
 
	
Rider
	
 
	
18-28
	
 
	
33-48
	
 
	
53+
	
 
	
18-28
	
 
	
33-48
	
 
	
53+
	
 
	
18-28
	
 
	
33-48
	
 
	
53+
	
 
	
18-28
	
 
	
33-48
	
 
	
53+
	
 
	
18-28
	
 
	
33-48
	
 
	
53+

	
1
	
 
	
24%
	
 
	
19%
	
 
	
15%
	
 
	
13%
	
 
	
24%
	
 
	
21%
	
 
	
17%
	
 
	
32%
	
 
	
26%
	
 
	
22%
	
 
	
31%
	
 
	
27%
	
 
	
19%
	
 
	
35%
	
 
	
31%
	
 
	
26%

	
2
	
 
	
16
	
 
	
14
	
 
	
10
	
 
	
9
	
 
	
17
	
 
	
13
	
 
	
11
	
 
	
20
	
 
	
17
	
 
	
13
	
 
	
19
	
 
	
17
	
 
	
13
	
 
	
25
	
 
	
20
	
 
	
16

	
3
	
 
	
12
	
 
	
11
	
 
	
9
	
 
	
7
	
 
	
13
	
 
	
11
	
 
	
9
	
 
	
16
	
 
	
15
	
 
	
9
	
 
	
15
	
 
	
12
	
 
	
9
	
 
	
16
	
 
	
15
	
 
	
10

	
4
	
 
	
10
	
 
	
9
	
 
	
7
	
 
	
6
	
 
	
11
	
 
	
9
	
 
	
8
	
 
	
13
	
 
	
12
	
 
	
7
	
 
	
11
	
 
	
9
	
 
	
7
	
 
	
12
	
 
	
10
	
 
	
8

	
5
	
 
	
8
	
 
	
8
	
 
	
6
	
 
	
5
	
 
	
10
	
 
	
9
	
 
	
8
	
 
	
10
	
 
	
10
	
 
	
7
	
 
	
10
	
 
	
8
	
 
	
7
	
 
	
10
	
 
	
8
	
 
	
7

	
6
	
 
	
7
	
 
	
8
	
 
	
5
	
 
	
5
	
 
	
9
	
 
	
8
	
 
	
7
	
 
	
10
	
 
	
9
	
 
	
6
	
 
	
9
	
 
	
7
	
 
	
6
	
 
	
9
	
 
	
8
	
 
	
7

	
7
	
 
	
7
	
 
	
7
	
 
	
5
	
 
	
5
	
 
	
8
	
 
	
7
	
 
	
6
	
 
	
8
	
 
	
8
	
 
	
5
	
 
	
8
	
 
	
6
	
 
	
6
	
 
	
9
	
 
	
7
	
 
	
6

	
8
	
 
	
6
	
 
	
6
	
 
	
5
	
 
	
5
	
 
	
7
	
 
	
6
	
 
	
5
	
 
	
7
	
 
	
7
	
 
	
4
	
 
	
7
	
 
	
6
	
 
	
5
	
 
	
8
	
 
	
7
	
 
	
6

	
9
	
 
	
6
	
 
	
5
	
 
	
4
	
 
	
4
	
 
	
6
	
 
	
5
	
 
	
4
	
 
	
6
	
 
	
6
	
 
	
4
	
 
	
6
	
 
	
5
	
 
	
5
	
 
	
7
	
 
	
6
	
 
	
5

	
10
	
 
	
5
	
 
	
5
	
 
	
4
	
 
	
4
	
 
	
5
	
 
	
4
	
 
	
3
	
 
	
5
	
 
	
4
	
 
	
3
	
 
	
5
	
 
	
4
	
 
	
4
	
 
	
6
	
 
	
5
	
 
	
4

	
11
	
 
	
5
	
 
	
4
	
 
	
3
	
 
	
3
	
 
	
4
	
 
	
3
	
 
	
3
	
 
	
4
	
 
	
3
	
 
	
3
	
 
	
4
	
 
	
3.5
	
 
	
3.5
	
 
	
5
	
 
	
4
	
 
	
4

	
12
	
 
	
4
	
 
	
3
	
 
	
3
	
 
	
3
	
 
	
3
	
 
	
3
	
 
	
3
	
 
	
3
	
 
	
3
	
 
	
3
	
 
	
4
	
 
	
3.5
	
 
	
3.5
	
 
	
4
	
 
	
4
	
 
	
4

	
13
	
 
	
3
	
 
	
2.5
	
 
	
2.5
	
 
	
2.5
	
 
	
2.5
	
 
	
2.5
	
 
	
2.5
	
 
	
3
	
 
	
3
	
 
	
3
	
 
	
3.5
	
 
	
3.5
	
 
	
3.5
	
 
	
3.5
	
 
	
3.5
	
 
	
3.5

	
14
	
 
	
3
	
 
	
2.5
	
 
	
2.5
	
 
	
2.5
	
 
	
2.5
	
 
	
2.5
	
 
	
2.5
	
 
	
3
	
 
	
3
	
 
	
3
	
 
	
3.5
	
 
	
3.5
	
 
	
3.5
	
 
	
3.5
	
 
	
3.5
	
 
	
3.5

	
15+
	
 
	
3
	
 
	
2.5
	
 
	
2.5
	
 
	
2.5
	
 
	
2.5
	
 
	
2.5
	
 
	
2.5
	
 
	
3
	
 
	
3
	
 
	
3
	
 
	
3
	
 
	
3
	
 
	
3
	
 
	
3
	
 
	
3
	
 
	
3

 

Base lapse rates for the EOT converted policies are the same as the above, but no higher than 5%.

	
B.
	
Lapse and Conversion at the end of initial Level Term Period (LTP).

Conversion rates at the end of the initial level term period are shown below, for all products except Custom Advantage.

 

	
End of Term (EOT) Conversion Rate

	
Level Term Period
	
 
	
Rate

	
10
	
 
	
50%

	
15
	
 
	
50

	
20
	
 
	
50

	
25
	
 
	
40

	
30
	
 
	
35

	
35
	
 
	
30

	
Other
	
 
	
0

 

No future conversions are assumed for Custom Advantage since it does not have the conversion provision in the contract. No future conversions are assumed for policies that are beyond attained age 70 at the end of the level term period.

B-8

Milliman

 

The lapse rates after the end of term are summarized in the following table, depending on whether ART period follows the original level term period. Renewals are not projected for 25, 30, or 35-year term business.

 

	
EOT Lapse Rates (% of exposure before conversion)

	
 
	
 
	
Non-ART
	
 
	
ART

	
 
	
 
	
Level Term Period (t)
	
 
	
Level Term Period

	
 
	
 
	
10
	
 
	
15
	
 
	
20
	
 
	
25
	
 
	
30
	
 
	
35
	
 
	
Other
	
 
	
10
	
 
	
15
	
 
	
20
	
 
	
25
	
 
	
30
	
 
	
35
	
 
	
Other

	
T
	
 
	
28%
	
 
	
30%
	
 
	
35%
	
 
	
60%
	
 
	
65%
	
 
	
70%
	
 
	
100%
	
 
	
28%
	
 
	
30%
	
 
	
35%
	
 
	
60%
	
 
	
65%
	
 
	
70%
	
 
	
100%

	
t+1
	
 
	
12
	
 
	
12
	
 
	
12
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
20
	
 
	
20
	
 
	
20
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
t+2
	
 
	
12
	
 
	
12
	
 
	
12
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
15
	
 
	
15
	
 
	
15
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
t+3
	
 
	
10
	
 
	
10
	
 
	
10
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
15
	
 
	
15
	
 
	
15
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
t+4
	
 
	
7
	
 
	
7
	
 
	
7
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
15
	
 
	
15
	
 
	
15
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
t+5
	
 
	
5
	
 
	
5
	
 
	
5
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
15
	
 
	
15
	
 
	
15
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

EOT lapse rates and conversion rates are additive. For example, the total termination rate at the end of a 20-year level term period is 85%.

Lapse rates at the end of the level term period on Custom Advantage are shown below.

 

	
Custom Advantage

	
 
	
 
	
Non ART
	
 
	
ART

	
 
	
 
	
10-20
	
 
	
25-30
	
 
	
10-20
	
 
	
25-30

	
t
	
 
	
60%
	
 
	
100%
	
 
	
60%
	
 
	
100%

	
t+1
	
 
	
25
	
 
	
 
	
 
	
50
	
 
	
 

	
t+2
	
 
	
10
	
 
	
 
	
 
	
25
	
 
	
 

	
t+3
	
 
	
10
	
 
	
 
	
 
	
15
	
 
	
 

	
t+4
	
 
	
5
	
 
	
 
	
 
	
15
	
 
	
 

 

The shock lapse and conversion is assumed at the end of the current level term period immediately before the renewal period begins.

	
C.
	
20% additional lapse is assumed each time there is an increase in premium level after the initial LTP premium increase. If in an ART renewal period, then the 20% is only at the start of the ART period.

	
D.
	
Lapse following an ART schedule excluding the end of the initial term period are 20% in the first year followed by 15% throughout.

	
E.
	
115%, 105% and 100% of the base lapses is assumed in the first, second and third, respectively, and there after to reflect the deterioration of the lapse observed from 2008 and early 2009 experience which management believes is due to the economy and only temporary.

Expenses

The following expenses are assumed.

	
A.
	
Maintenance: $42.5

	
B.
	
Inflation: 3%

	
C.
	
Premium Tax: 2% US

	
D.
	
Acquisition: $275 New Issue

$60 New Conversion

B-9

Milliman

 

Commissions

All commissions are paid on cash premium excluding policy fees.

 

	
Commission for Advance (75% of net) - 1st Year (Paid Immediately)

	
LTP
	
 
	
Custom Advantage
	
 
	
Other

	
 
	
10
	
 
	
15, 20
	
 
	
25, 30, 35
	
 
	
All

	
Band
	
 
	
1-2
	
 
	
3
	
 
	
4
	
 
	
1
	
 
	
2
	
 
	
3
	
 
	
4
	
 
	
1-4
	
 
	
All

	
18-25
	
 
	
67.3%
	
 
	
67.3%
	
 
	
56.1%
	
 
	
82.7%
	
 
	
82.7%
	
 
	
82.7%
	
 
	
71.5%
	
 
	
82.7%
	
 
	
91.5%

	
26-40
	
 
	
67.3
	
 
	
67.3
	
 
	
56.1
	
 
	
91.3
	
 
	
91.3
	
 
	
91.3
	
 
	
80.1
	
 
	
91.3
	
 
	
91.5

	
41-45
	
 
	
67.3
	
 
	
56.1
	
 
	
44.8
	
 
	
91.3
	
 
	
80.1
	
 
	
80.1
	
 
	
68.8
	
 
	
91.3
	
 
	
91.5

	
46-50
	
 
	
67.3
	
 
	
44.8
	
 
	
37.3
	
 
	
91.3
	
 
	
72.6
	
 
	
68.8
	
 
	
61.3
	
 
	
0
	
 
	
91.5

	
51-60
	
 
	
67.3
	
 
	
41.1
	
 
	
37.3
	
 
	
91.3
	
 
	
65.1
	
 
	
65.1
	
 
	
61.3
	
 
	
0
	
 
	
91.5

	
61-70
	
 
	
67.3
	
 
	
37.3
	
 
	
37.3
	
 
	
75.9
	
 
	
68.4
	
 
	
68.4
	
 
	
68.4
	
 
	
0
	
 
	
91.5

 

	
Modal Commission (25% of net) - 1st Year Only*

	
 
	
 
	
Custom Advantage
	
 
	
Other

	
LTP
	
 
	
10
	
 
	
15, 20
	
 
	
25, 30, 35
	
 
	
All

	
Band
	
 
	
1-2
	
 
	
3
	
 
	
4
	
 
	
1
	
 
	
2
	
 
	
3
	
 
	
4
	
 
	
1-4
	
 
	
All

	
18-25
	
 
	
22.4%
	
 
	
22.4%
	
 
	
18.7%
	
 
	
27.6%
	
 
	
27.6%
	
 
	
27.6%
	
 
	
23.8%
	
 
	
27.6%
	
 
	
30.5%

	
26-40
	
 
	
22.4
	
 
	
22.4
	
 
	
18.7
	
 
	
30.4
	
 
	
30.4
	
 
	
30.4
	
 
	
26.7
	
 
	
30.4
	
 
	
30.5

	
41-45
	
 
	
22.4
	
 
	
18.7
	
 
	
14.9
	
 
	
30.4
	
 
	
26.7
	
 
	
26.7
	
 
	
22.9
	
 
	
30.4
	
 
	
30.5

	
46-50
	
 
	
22.4
	
 
	
14.9
	
 
	
12.4
	
 
	
30.4
	
 
	
24.2
	
 
	
22.9
	
 
	
20.4
	
 
	
0
	
 
	
30.5

	
51-60
	
 
	
22.4
	
 
	
13.7
	
 
	
12.4
	
 
	
30.4
	
 
	
21.7
	
 
	
21.7
	
 
	
20.4
	
 
	
0
	
 
	
30.5

	
61-70
	
 
	
22.4
	
 
	
12.4
	
 
	
12.4
	
 
	
25.3
	
 
	
22.8
	
 
	
22.8
	
 
	
22.8
	
 
	
0
	
 
	
30.5

 

* Modal commissions are paid only at months of 10,11 and 12 within the first issue year.

 

																			
	
Bonus Advanced - 1st Year Only (Paid Immediately)

	
 
	
 
	
Custom Advantage
	
 
	
Other

	
LTP
	
 
	
10
	
 
	
15, 20
	
 
	
25, 30, 35
	
 
	
All

	
Band
	
 
	
1-2
	
 
	
3
	
 
	
4
	
 
	
1
	
 
	
2
	
 
	
3
	
 
	
4
	
 
	
1-4
	
 
	
All

	
18-25
	
 
	
52.9%
	
 
	
52.9%
	
 
	
52.9%
	
 
	
49.8%
	
 
	
49.8%
	
 
	
49.8%
	
 
	
49.8%
	
 
	
49.8%
	
 
	
56.3%

	
26-40
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
56.3

	
41-45
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
56.3

	
46-50
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
0
	
 
	
56.3

	
51-60
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
0
	
 
	
56.3

	
61-70
	
 
	
52.9
	
 
	
52.9
	
 
	
52.9
	
 
	
44.6
	
 
	
44.6
	
 
	
44.6
	
 
	
44.6
	
 
	
0
	
 
	
56.3

 

The companies have charge-back provisions on the base commission on a declining scale for lapses during the first ten months, which have not been reflected in the modeling.

IBR Commissions

	
 
	
•
	
Percent of Increased premium resulting from the IBR face amount increase, not total rider premium.

	
 
	
•
	
No Bonus

	
 
	
•
	
Percentage of cash premium (increased amount)

 

	
IA
	
 
	
 

	
18-25
	
 
	
75%

	
26+
	
 
	
90%

 

Commission on Conversion

63% of first year modal premium, of which 52% is paid at issue and 11% is paid at months 10-12 of the first issue year.

B-10

Milliman

 

Reinsurance

Reinsurance on the inforce business is ceded on both a coinsurance and YRT basis. Beginning in 1994, Primerica has ceded its business primarily on an YRT basis so almost all coinsurance amounts on issues after 1994 are a result of past conversions. Coinsurance exists primarily from business written in the 1980s. The following summarizes the general reinsurance terms.

Coinsurance Allowances

Mod 15

25%

Ultima Term Rider

 

	
Issued Prior to 5/1/83:
	
 
	
2.5%

	
Issued 5/1/83 - 12/31/85:
	
 
	
35%

	
Issued 1/1/86+:
	
 
	
25%

Common Sense Term

 

	
Issued Prior to 1/1/88:
	
 
	
PNS:
	
 
	
2.5%

	
 
	
 
	
SNS:
	
 
	
32.5

	
 
	
 
	
SM:
	
 
	
37.5

	
Issued in 1988-1990:
	
 
	
 
	
 
	
12.5%

	
Issued in 1990+:
	
 
	
IY
	
 
	
 

	
 
	
 
	
1-20
	
 
	
16%

	
 
	
 
	
21+
	
 
	
12.5

 

DL65

 

	
 
	
 
	
 
	
 
	
1A
	
 
	
1A
	
 
	
1A

	
 
	
 
	
 
	
 
	
0-49
	
 
	
41-49
	
 
	
50+

	
Issued Prior to 1/1/90:
	
 
	
PNS
	
 
	
13.8%
	
 
	
8.5%
	
 
	
8.5%

	
 
	
 
	
SNS
	
 
	
18.8
	
 
	
1.5
	
 
	
10.5

	
 
	
 
	
SM
	
 
	
23.8
	
 
	
21.3
	
 
	
21.3

	
Issued 1//1/90+:
	
 
	
PNS
	
 
	
17.3
	
 
	
12.0
	
 
	
12.0

	
 
	
 
	
SNS
	
 
	
22.3
	
 
	
18.5
	
 
	
14.0

	
 
	
 
	
SM
	
 
	
27.3
	
 
	
24.8
	
 
	
24.8

 

Jumbo Term Rider 0.10%

0.10%

Bonded CST

19.5%

B-11

Milliman

 

Eagle

 

	
Original
	
 
	
 
	
 
	
 
	
 
	
10LTP

	
IY
	
 
	
20LTP
	
 
	
15LTP
	
 
	
1-10
	
 
	
15+

	
< 1990
	
 
	
20.0%
	
 
	
12.5%
	
 
	
5.0%
	
 
	
12.5%

	
1/1/90 - 6/30/91
	
 
	
25.0
	
 
	
12.5
	
 
	
5.0
	
 
	
12.5

	
7/1/91+
	
 
	
26.5
	
 
	
12.5
	
 
	
5.0
	
 
	
12.5

 

	
T2000 (Converted policy)

	
 

	
Base:
	
31.0% (WA w/ Record/Policy Count)

	
Spouse:
	
20.0%

 

Custom Series (converted policy)

 

	
 
	
 
	
LTP

	
 
	
 
	
10
	
 
	
15
	
 
	
20
	
 
	
25
	
 
	
30

	
Custom A, Custom B, and Custom Plus
	
 
	
5%
	
 
	
12.5%
	
 
	
20%
	
 
	
20%
	
 
	
20%

 

YRT Reinsurance

YRT treaty terms are listed below. All YRT premium rates except for Custom Advantage are increased by 103.5% to account for the special pool arrangement where it is assumed to have 7% overall coverage at a 50% additional premium. Additional YRT premium on substandard policies reflects an overall factor of 101.6%, adjusted by a substandard allowance of 90% for the first policy year and 15% thereafter. Finally, the SNS and SM rates are increased by an additional amount consistent with the mortality assumption increase to account for discrepancies from the actual class for reinsurance versus the class on the seriatim file.

The YRT rates are as follows:

 

	
ERA
	
 
	
Issue Period
	
 
	
YRT Terms

	
1
	
 
	
6/94 - 12/96
	
 
	
80% Quota share with max (1,000,000 per life)

i.e., Rein Amt = max ($lm, 80% Direct Amount)

YRT Rates were provided by the Company.

- Assume 100% of the rates defined in treaty

	
2
	
 
	
1/97 - 5/99
	
 
	
90% Quota share w/ max of $lm per life

YRT rates are the same as Era 1.

	
 
	
 
	
 
	
 
	
 

	
3
	
 
	
6/99 - 12/00
	
 
	
90% Quota share w/ max of $1M per life

	
 
	
 
	
 
	
 
	
YRT Rates = 100% of rates for non-blood. Rates provided by the Company 72% of rates defined in treaty

	
 
	
 
	
 
	
 
	
 

	
4
	
 
	
1/01 - 12/02
	
 
	
90% Quota share w/max of $lm per life

YRT Rates = Percentage of 75-80 15 Year S&U Table (ANB) (SOA)

1st Year =0%

Renewal:

	
 
	
 
	
 
	
 
	
 
	
 
	
Male
	
 
	
Female

	
 
	
 
	
 
	
 
	
 
	
 
	
Tested
	
 
	
Non-Tested
	
 
	
Tested
	
 
	
Non-Tested

	
 
	
 
	
 
	
 
	
PNT
	
 
	
35.1%
	
 
	
—
	
 
	
35.1%
	
 
	
—

	
 
	
 
	
 
	
 
	
SNT
	
 
	
46.0
	
 
	
59.9%
	
 
	
46.0
	
 
	
59.9%

	
 
	
 
	
 
	
 
	
Tobacco
	
 
	
95.5
	
 
	
126.1
	
 
	
95.5
	
 
	
126.1

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Rates do not vary by sex.

B-12

Milliman

 

	
ERA
	
 
	
Issue Period
	
 
	
YRT Terms

	
5
	
 
	
1/03-12/03
	
 
	
90% Quota share w/max of $lm per life

	
 
	
 
	
 
	
 
	
 
	
 
	
Percentage of 75-80
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
Tested
	
 
	
Non-Tested
	
 

	
 
	
 
	
 
	
 
	
PNT 
	
 
	
33.7%
	
 
	
—
	
 

	
 
	
 
	
 
	
 
	
SNT  
	
 
	
43.3
	
 
	
57.5%
	
 

	
 
	
 
	
 
	
 
	
Tobacco
	
 
	
94.4
	
 
	
125.9
	
 

	
 
	
 
	
 
	
 
	
 

	
6
	
 
	
1/04 - 9/05
	
 
	
90% Quota share w/max of $lm per life

	
 
	
 
	
 
	
 
	
 
	
 
	
Percentage of 75-80
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
Tested
	
 
	
Non-Tested
	
 

	
 
	
 
	
 
	
 
	
PNT 
	
 
	
33.1%
	
 
	
—
	
 

	
 
	
 
	
 
	
 
	
SNT  
	
 
	
42.9
	
 
	
57.5%
	
 

	
 
	
 
	
 
	
 
	
Tobacco
	
 
	
96.7
	
 
	
128.3
	
 

	
 
	
 
	
 
	
 
	
 

	
7
	
 
	
10/05 - 12/05
	
 
	
90% Quota share w/max of $lm per life

	
 
	
 
	
 
	
 
	
 
	
 
	
Percentage of 75-80

	
 
	
 
	
 
	
 
	
 
	
 
	
Tested
	
 
	
Non-Tested

	
 
	
 
	
 
	
 
	
 
	
 
	
1st Year
	
 
	
Renewal
	
 
	
1st Year
	
 
	
Renewal

	
 
	
 
	
 
	
 
	
PNT 
	
 
	
7.4%
	
 
	
33.4%
	
 
	
—
	
 
	
—

	
 
	
 
	
 
	
 
	
SNT  
	
 
	
9.1
	
 
	
42.9
	
 
	
12.5
	
 
	
57.6

	
 
	
 
	
 
	
 
	
Tobacco
	
 
	
15.8
	
 
	
93.1
	
 
	
21.5
	
 
	
123.3

	
 
	
 
	
 
	
 
	
 

	
8
	
 
	
1/06 - 2/06
	
 
	
90% Quota share w/max of $lm per life

	
 
	
 
	
 
	
 
	
 
	
 
	
Percentage of 75-80

	
 
	
 
	
 
	
 
	
 
	
 
	
Tested
	
 
	
Non-Tested

	
 
	
 
	
 
	
 
	
 
	
 
	
1st Year
	
 
	
Renewal
	
 
	
1st Year
	
 
	
Renewal

	
 
	
 
	
 
	
 
	
PNT 
	
 
	
14.67%
	
 
	
34.2%
	
 
	
—
	
 
	
—

	
 
	
 
	
 
	
 
	
SNT  
	
 
	
18.09
	
 
	
42.4
	
 
	
24.45%
	
 
	
57.0%

	
 
	
 
	
 
	
 
	
Tobacco
	
 
	
34.58
	
 
	
90.9
	
 
	
48.15
	
 
	
123.6

	
 
	
 
	
 
	
 
	
 

	
9
	
 
	
3/06 - 9/06
	
 
	
90% Quota share w/max of $lm per life

	
 
	
 
	
 
	
 
	
 
	
 
	
Percentage of 75-80

	
 
	
 
	
 
	
 
	
 
	
 
	
Tested
	
 
	
Non-Tested

	
 
	
 
	
 
	
 
	
 
	
 
	
1st Year
	
 
	
Renewal
	
 
	
1st Year
	
 
	
Renewal

	
 
	
 
	
 
	
 
	
PNT 
	
 
	
19.81%
	
 
	
33.3%
	
 
	
—
	
 
	
—

	
 
	
 
	
 
	
 
	
SNT  
	
 
	
25.15
	
 
	
42.1
	
 
	
34.45%
	
 
	
56.8%

	
 
	
 
	
 
	
 
	
Tobacco
	
 
	
49.04
	
 
	
88.9
	
 
	
68.53
	
 
	
121.3

	
 
	
 
	
 
	
 
	
 

	
10
	
 
	
10/06+
	
 
	
72% Quota share w/max of $lm per life

	
 
	
 
	
 
	
 
	
 
	
 
	
Percentage of 75-80

	
 
	
 
	
 
	
 
	
 
	
 
	
Tested
	
 
	
Non-Tested

	
 
	
 
	
 
	
 
	
 
	
 
	
1st Year
	
 
	
Renewal
	
 
	
1st Year
	
 
	
Renewal

	
 
	
 
	
 
	
 
	
PNT 
	
 
	
24.76%
	
 
	
33.1%
	
 
	
—
	
 
	
—

	
 
	
 
	
 
	
 
	
SNT  
	
 
	
31.44
	
 
	
42.1
	
 
	
43.06%
	
 
	
56.4%

	
 
	
 
	
 
	
 
	
Tobacco
	
 
	
61.30
	
 
	
88.2
	
 
	
85.66
	
 
	
119.9

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
11
	
 
	
Custom Advantage
	
 
	
90% Quota share w/max of $lm per life

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Percentage of 75-80

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Tested
	
 
	
Non-Tested

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
1st Year
	
 
	
Renewal
	
 
	
1st Year
	
 
	
Renewal

	
 
	
 
	
 
	
 
	
Female
	
 
	
Pref Plus
	
 
	
22.78%
	
 
	
33.53%
	
 
	
—
	
 
	
—

	
 
	
 
	
 
	
 
	
 
	
 
	
PNT
	
 
	
25.32
	
 
	
37.25
	
 
	
—
	
 
	
—

	
 
	
 
	
 
	
 
	
 
	
 
	
SNT
	
 
	
31.48
	
 
	
46.37
	
 
	
43.25%
	
 
	
62.03%

	
 
	
 
	
 
	
 
	
 
	
 
	
Tobacco
	
 
	
66.07
	
 
	
97.97
	
 
	
87.96
	
 
	
130.55

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Male
	
 
	
Pref Plus
	
 
	
21.90%
	
 
	
32.05%
	
 
	
—
	
 
	
—

	
 
	
 
	
 
	
 
	
 
	
 
	
PNT
	
 
	
24.33
	
 
	
35.61
	
 
	
—
	
 
	
—

	
 
	
 
	
 
	
 
	
 
	
 
	
SNT
	
 
	
29.91
	
 
	
44.04
	
 
	
41.60%
	
 
	
60.09%

	
 
	
 
	
 
	
 
	
 
	
 
	
Tobacco
	
 
	
61.27
	
 
	
92.55
	
 
	
82.61
	
 
	
124.88

Reinsurance on new business in the U.S. is assumed to be recaptured at the end of the level period, when the reinsurers generally have the option to increase YRT rates.

B-13

Milliman

 

Miscellaneous Liabilities

The following provides a description of certain blocks of business which were projected on an aggregate basis.

	
1)
	
Retained Asset Account:

 

	
Retained Asset Account Initial Reserve

	
PLIC
	
 
	
$286.5 million

 

	
 
	
•
	
Future reserves are projected based on 33.5% of claims for PLIC.

	
 
	
•
	
Investment earnings rate: 5.00%

	
 
	
•
	
Credited rate: 3.00%

	
2)
	
Waiver of Premium:

	
 
	
•
	
Disabled life reserve: $303.1 million (PLIC). Future reserves are projected based on a 20- year straight-line runoff. Valuation rate is 3.5%. No gain or loss from morbidity experience is projected.

	
 
	
•
	
Active life reserve: $110.9 million (PLIC), with an average valuation rate of 4.5% (4.0% NBL). Future reserves are projected as a constant percent of waiver premium.

	
 
	
•
	
Waiver premium: $36.0 million (PLIC). Future premium is projected in proportionto PLIC total premium (about 2.2% of premium)

	
 
	
•
	
Pre-tax profit margin: 25% of premium

 

 

 

B-14

Milliman

 

APPENDIX C

Detailed Statutory Income Projections

 

			
	
Line of Business
	
 
	
Page

	
 
	
 
	
 

	
Business Inforce as of June 30, 2009 (100% of business)
	
 
	
 

	
 
	
 
	
 

	
•    Primerica - Net (Before New Conversions)
	
 
	
C-2

	
•    Primerica - New Conversions - Net
	
 
	
C-5

	
•    Miscellaneous Primerica
	
 
	
C-8

	
•    Total Existing Business - Primerica
	
 
	
C-11

	
 
	
 
	
 

	
New Business Issued July 2009 to June 2018
	
 
	
 

	
 
	
 
	
 

	
•    Primerica Term
	
 
	
C-13

	
•    Primerica Waiver of Premium
	
 
	
C-15

	
•    Retained Asset Account
	
 
	
C-17

	
•    Total Future Business - Primerica
	
 
	
C-19

 

 

 

C-1

Milliman

 

	
017CIG0l\15\0906
	
 
	
 
	
 
	
 
	
 
	
 
	
Puck(Rev) @06/30/09 - Sens: 7- Year Recapture and PLIC Inforce External Res 
	
 
	
10/21/09
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
From PUCK0906B.XLS
	
 
	
 
	
 
	
 
	
 
	
 
	
Line of Business Projection
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
03:55 PM
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Existing Business at 06/30/2009 (000's)
	
2009
	
 
	
2010
	
 
	
2011
	
 
	
2012
	
 
	
2013
	
 
	
2014
	
 
	
2015
	
 
	
2016
	
 
	
2017
	
 
	
2018
	
 
	
2019
	
 
	
2020
	
 
	
2021
	
 
	
2022
	
 
	
2023
	
 
	
2024
	
 
	
2025
	
 

	
Primerica - Net (Before New Conversions)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
GROSS PREMIUMS
	
 
	
—
	
 
	
 
	
1,603,707
	
 
	
 
	
1,467,639
	
 
	
 
	
1,371,570
	
 
	
 
	
1,292,586
	
 
	
 
	
1,224,895
	
 
	
 
	
1,163,192
	
 
	
 
	
1,105,602
	
 
	
 
	
1,033,055
	
 
	
 
	
955,709
	
 
	
 
	
889,594
	
 
	
 
	
824,475
	
 
	
 
	
756,868
	
 
	
 
	
690,002
	
 
	
 
	
623,489
	
 
	
 
	
563,156
	
 
	
 
	
500,966
	
 

	
REINSURANCE PREMIUMS (NET OF ALLOWANCES)
	
 
	
—
	
 
	
 
	
(511,964
	
)
	
 
	
(523,237
	
)
	
 
	
(538,948
	
)
	
 
	
(556,469
	
)
	
 
	
(574,692
	
)
	
 
	
(576,618
	
)
	
 
	
(574,992
	
)
	
 
	
(562,842
	
)
	
 
	
(545,556
	
)
	
 
	
(529,031
	
)
	
 
	
(515,196
	
)
	
 
	
(492,815
	
)
	
 
	
(466,018
	
)
	
 
	
(432,651
	
)
	
 
	
(390,339
	
)
	
 
	
(347,211
	
)

	
GROSS INVESTMENT INCOME PLUS FEE INCOME
	
 
	
—
	
 
	
 
	
155,714
	
 
	
 
	
155,599
	
 
	
 
	
153,629
	
 
	
 
	
149,844
	
 
	
 
	
148,386
	
 
	
 
	
145,167
	
 
	
 
	
140,358
	
 
	
 
	
133,290
	
 
	
 
	
124,370
	
 
	
 
	
114,354
	
 
	
 
	
103,421
	
 
	
 
	
90,736
	
 
	
 
	
76,180
	
 
	
 
	
61,627
	
 
	
 
	
47,209
	
 
	
 
	
32,023
	
 

	
ACCRUAL OF DISCOUNT
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
AMORTIZATION OF IMR
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INVESTMENT EXPENSE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INCOME LOST ON DEFAULTS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL INCOME
	
 
	
—
	
 
	
 
	
1,247,457
	
 
	
 
	
1,100,001
	
 
	
 
	
986,251
	
 
	
 
	
885,961
	
 
	
 
	
798,589
	
 
	
 
	
731,742
	
 
	
 
	
670,969
	
 
	
 
	
603,502
	
 
	
 
	
534,524
	
 
	
 
	
474,916
	
 
	
 
	
412,700
	
 
	
 
	
354,790
	
 
	
 
	
300,163
	
 
	
 
	
252,465
	
 
	
 
	
220,027
	
 
	
 
	
185,778
	
 

	
NET SURRENDERS
	
 
	
—
	
 
	
 
	
(5,239
	
)
	
 
	
(4,412
	
)
	
 
	
(3,667
	
)
	
 
	
(3,230
	
)
	
 
	
(2,947
	
)
	
 
	
(2,793
	
)
	
 
	
(2,746
	
)
	
 
	
(2,678
	
)
	
 
	
(2,678
	
)
	
 
	
(2,734
	
)
	
 
	
(2,481
	
)
	
 
	
(2,283
	
)
	
 
	
(2,198
	
)
	
 
	
(2,126
	
)
	
 
	
(2,056
	
)
	
 
	
(1,919
	
)

	
HEALTH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
DIRECT DEATH BENEFITS
	
 
	
—
	
 
	
 
	
813,891
	
 
	
 
	
775,299
	
 
	
 
	
761,663
	
 
	
 
	
751,877
	
 
	
 
	
743,055
	
 
	
 
	
733,731
	
 
	
 
	
721,189
	
 
	
 
	
698,560
	
 
	
 
	
663,538
	
 
	
 
	
623,568
	
 
	
 
	
596,729
	
 
	
 
	
571,379
	
 
	
 
	
541,257
	
 
	
 
	
506,135
	
 
	
 
	
462,969
	
 
	
 
	
419,338
	
 

	
REINSURANCE DEATH BENEFITS
	
 
	
—
	
 
	
 
	
(450,436
	
)
	
 
	
(447,938
	
)
	
 
	
(459,582
	
)
	
 
	
(473,036
	
)
	
 
	
(487,054
	
)
	
 
	
(493,729
	
)
	
 
	
(492,185
	
)
	
 
	
(483,945
	
)
	
 
	
(467,049
	
)
	
 
	
(444,732
	
)
	
 
	
(429,319
	
)
	
 
	
(413,036
	
)
	
 
	
(392,789
	
)
	
 
	
(367,566
	
)
	
 
	
(334,313
	
)
	
 
	
(299,631
	
)

	
ACQUISITION EXPENSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
OTHER EXPENSES
	
 
	
—
	
 
	
 
	
109,636
	
 
	
 
	
99,061
	
 
	
 
	
91,879
	
 
	
 
	
85,814
	
 
	
 
	
80,431
	
 
	
 
	
75,625
	
 
	
 
	
71,139
	
 
	
 
	
66,326
	
 
	
 
	
61,175
	
 
	
 
	
56,377
	
 
	
 
	
52,591
	
 
	
 
	
48,901
	
 
	
 
	
45,066
	
 
	
 
	
41,227
	
 
	
 
	
37,210
	
 
	
 
	
33,359
	
 

	
NET COMMISSIONS
	
 
	
—
	
 
	
 
	
46,378
	
 
	
 
	
16,560
	
 
	
 
	
14,131
	
 
	
 
	
12,053
	
 
	
 
	
10,033
	
 
	
 
	
8,247
	
 
	
 
	
6,298
	
 
	
 
	
4,535
	
 
	
 
	
2,999
	
 
	
 
	
1,665
	
 
	
 
	
984
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
COST OF FINANCING
	
 
	
—
	
 
	
 
	
30,465
	
 
	
 
	
30,465
	
 
	
 
	
30,465
	
 
	
 
	
30,052
	
 
	
 
	
27,101
	
 
	
 
	
23,980
	
 
	
 
	
20,987
	
 
	
 
	
17,998
	
 
	
 
	
15,018
	
 
	
 
	
12,146
	
 
	
 
	
9,485
	
 
	
 
	
6,823
	
 
	
 
	
4,057
	
 
	
 
	
1,538
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INCREASE IN LOADING
	
 
	
—
	
 
	
 
	
(762
	
)
	
 
	
(568
	
)
	
 
	
(134
	
)
	
 
	
(302
	
)
	
 
	
1,107
	
 
	
 
	
660
	
 
	
 
	
569
	
 
	
 
	
(542
	
)
	
 
	
(1,186
	
)
	
 
	
1,596
	
 
	
 
	
(141
	
)
	
 
	
(667
	
)
	
 
	
(651
	
)
	
 
	
(1,170
	
)
	
 
	
2,361
	
 
	
 
	
130
	
 

	
INCREASE IN RESERVES
	
 
	
—
	
 
	
 
	
46,845
	
 
	
 
	
5,654
	
 
	
 
	
(47,658
	
)
	
 
	
(96,697
	
)
	
 
	
(140,532
	
)
	
 
	
(164,766
	
)
	
 
	
(203,466
	
)
	
 
	
(240,307
	
)
	
 
	
(260,466
	
)
	
 
	
(264,737
	
)
	
 
	
(297,539
	
)
	
 
	
(336,517
	
)
	
 
	
(331,605
	
)
	
 
	
(303,157
	
)
	
 
	
(263,610
	
)
	
 
	
(206,314
	
)

	
INCR IN RESERVE FINANCING LIABILITY
	
 
	
—
	
 
	
 
	
(13,756
	
)
	
 
	
(1,733
	
)
	
 
	
13,762
	
 
	
 
	
98,354
	
 
	
 
	
104,030
	
 
	
 
	
99,785
	
 
	
 
	
99,632
	
 
	
 
	
99,339
	
 
	
 
	
95,736
	
 
	
 
	
88,690
	
 
	
 
	
88,718
	
 
	
 
	
92,201
	
 
	
 
	
83,979
	
 
	
 
	
51,263
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL DISBURSEMENTS
	
 
	
—
	
 
	
 
	
577,022
	
 
	
 
	
472,387
	
 
	
 
	
400,859
	
 
	
 
	
404,886
	
 
	
 
	
335,224
	
 
	
 
	
280,739
	
 
	
 
	
221,417
	
 
	
 
	
159,285
	
 
	
 
	
107,088
	
 
	
 
	
71,838
	
 
	
 
	
19,027
	
 
	
 
	
(33,199
	
)
	
 
	
(52,883
	
)
	
 
	
(73,857
	
)
	
 
	
(97,439
	
)
	
 
	
(55,037
	
)

	
STATUTORY GAIN
	
 
	
—
	
 
	
 
	
670,435
	
 
	
 
	
627,614
	
 
	
 
	
585,392
	
 
	
 
	
481,075
	
 
	
 
	
463,365
	
 
	
 
	
451,002
	
 
	
 
	
449,552
	
 
	
 
	
444,218
	
 
	
 
	
427,435
	
 
	
 
	
403,078
	
 
	
 
	
393,673
	
 
	
 
	
387,989
	
 
	
 
	
353,046
	
 
	
 
	
326,322
	
 
	
 
	
317,466
	
 
	
 
	
240,814
	
 

	
CAPITAL GAINS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
GAIN ON CALLS AND ROLLOVER
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS DEFAULT LOSSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS IMR CAPITALIZATION
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
BOOK PROFIT
	
 
	
—
	
 
	
 
	
670,435
	
 
	
 
	
627,614
	
 
	
 
	
585,392
	
 
	
 
	
481,075
	
 
	
 
	
463,365
	
 
	
 
	
451,002
	
 
	
 
	
449,552
	
 
	
 
	
444,218
	
 
	
 
	
427,435
	
 
	
 
	
403,078
	
 
	
 
	
393,673
	
 
	
 
	
387,989
	
 
	
 
	
353,046
	
 
	
 
	
326,322
	
 
	
 
	
317,466
	
 
	
 
	
240,814
	
 

	
INCREASE IN SURPLUS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
FEDERAL INCOME TAX
	
 
	
—
	
 
	
 
	
223,984
	
 
	
 
	
206,992
	
 
	
 
	
197,377
	
 
	
 
	
188,810
	
 
	
 
	
183,181
	
 
	
 
	
176,398
	
 
	
 
	
175,260
	
 
	
 
	
172,971
	
 
	
 
	
166,452
	
 
	
 
	
156,569
	
 
	
 
	
153,695
	
 
	
 
	
153,801
	
 
	
 
	
139,421
	
 
	
 
	
119,455
	
 
	
 
	
99,131
	
 
	
 
	
72,778
	
 

	
PROFITS RELEASED
	
 
	
—
	
 
	
 
	
446,451
	
 
	
 
	
420,622
	
 
	
 
	
388,015
	
 
	
 
	
292,265
	
 
	
 
	
280,184
	
 
	
 
	
274,604
	
 
	
 
	
274,292
	
 
	
 
	
271,247
	
 
	
 
	
260,983
	
 
	
 
	
246,509
	
 
	
 
	
239,978
	
 
	
 
	
234,188
	
 
	
 
	
213,625
	
 
	
 
	
206,867
	
 
	
 
	
218,335
	
 
	
 
	
168,036
	
 

	
STATUTORY RESERVE (GA) (Canada=GAAP)
	
 
	
3,469,989
	
 
	
 
	
3,516,834
	
 
	
 
	
3,522,489
	
 
	
 
	
3,474,830
	
 
	
 
	
3,378,133
	
 
	
 
	
3,237,601
	
 
	
 
	
3,072,835
	
 
	
 
	
2,869,369
	
 
	
 
	
2,629,062
	
 
	
 
	
2,368,596
	
 
	
 
	
2,103,859
	
 
	
 
	
1,806,320
	
 
	
 
	
1,469,803
	
 
	
 
	
1,138,199
	
 
	
 
	
835,041
	
 
	
 
	
571,431
	
 
	
 
	
365,117
	
 

	
RESERVE FINANCING
	
 
	
(1,000,000
	
)
	
 
	
(1,013,756
	
)
	
 
	
(1,015,489
	
)
	
 
	
(1,001,727
	
)
	
 
	
(903,373
	
)
	
 
	
(799,343
	
)
	
 
	
(699,558
	
)
	
 
	
(599,926
	
)
	
 
	
(500,587
	
)
	
 
	
(404,851
	
)
	
 
	
(316,161
	
)
	
 
	
(227,443
	
)
	
 
	
(135,242
	
)
	
 
	
(51,263
	
)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL LIABILITY (GA)
	
 
	
2,458,300
	
 
	
 
	
2,492,115
	
 
	
 
	
2,496,376
	
 
	
 
	
2,462,544
	
 
	
 
	
2,463,470
	
 
	
 
	
2,426,037
	
 
	
 
	
2,359,465
	
 
	
 
	
2,253,710
	
 
	
 
	
2,113,356
	
 
	
 
	
1,949,072
	
 
	
 
	
1,773,761
	
 
	
 
	
1,565,732
	
 
	
 
	
1,322,191
	
 
	
 
	
1,075,357
	
 
	
 
	
823,726
	
 
	
 
	
560,496
	
 
	
 
	
354,861
	
 

	
SEPARATE ACCOUNT LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TAX RESERVE (GA)
	
 
	
2,568,043
	
 
	
 
	
2,632,340
	
 
	
 
	
2,672,810
	
 
	
 
	
2,660,436
	
 
	
 
	
2,602,978
	
 
	
 
	
2,505,535
	
 
	
 
	
2,385,972
	
 
	
 
	
2,229,027
	
 
	
 
	
2,038,689
	
 
	
 
	
1,826,262
	
 
	
 
	
1,606,690
	
 
	
 
	
1,353,205
	
 
	
 
	
1,058,222
	
 
	
 
	
766,089
	
 
	
 
	
499,480
	
 
	
 
	
270,486
	
 
	
 
	
97,727
	
 

	
INTEREST MAINTENANCE RESERVE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
POLICIES IN FORCE (UNSCALED)
	
 
	
1,978,221
	
 
	
 
	
1,701,600
	
 
	
 
	
1,509,020
	
 
	
 
	
1,361,390
	
 
	
 
	
1,233,088
	
 
	
 
	
1,117,868
	
 
	
 
	
1,017,868
	
 
	
 
	
923,317
	
 
	
 
	
828,674
	
 
	
 
	
739,802
	
 
	
 
	
660,529
	
 
	
 
	
605,434
	
 
	
 
	
545,550
	
 
	
 
	
489,245
	
 
	
 
	
434,169
	
 
	
 
	
378,372
	
 
	
 
	
330,134
	
 

	
INSURANCE IN FORCE (NET)
	
 
	
158,301,613
	
 
	
 
	
137,854,183
	
 
	
119,545,126
	
 
	
104,452,408
	
 
	
91,120,860
	
 
	
 
	
78,449,891
	
 
	
 
	
71,080,965
	
 
	
64,636,389
	
 
	
57,938,891
	
 
	
52,036.482
	
 
	
 
	
46,772,176
	
 
	
42,978,641
	
 
	
 
	
38,691,806
	
 
	
34,371,851
	
 
	
30,373,890
	
 
	
26,436,229
	
 
	
 
	
22,910,555
	
 

	
CASH VALUE IN FORCE
	
 
	
4,931
	
 
	
 
	
5,896
	
 
	
 
	
6,343
	
 
	
 
	
5,994
	
 
	
 
	
5,384
	
 
	
 
	
4,708
	
 
	
 
	
4,164
	
 
	
 
	
3,946
	
 
	
 
	
4,072
	
 
	
 
	
4,491
	
 
	
 
	
5,213
	
 
	
 
	
4,940
	
 
	
 
	
4,611
	
 
	
 
	
4,271
	
 
	
 
	
3,184
	
 
	
 
	
1,955
	
 
	
 
	
1,165
	
 

	
ECONOMIC RESERVE (Canada=GAAP)
	
 
	
(1,169,667
	
)
	
 
	
(736,095
	
)
	
 
	
(351,278
	
)
	
 
	
(26,700
	
)
	
 
	
242,709
	
 
	
 
	
461,012
	
 
	
 
	
639,743
	
 
	
 
	
778,912
	
 
	
 
	
882,763
	
 
	
 
	
953,827
	
 
	
 
	
996,542
	
 
	
 
	
1,006,608
	
 
	
 
	
989,725
	
 
	
 
	
949,339
	
 
	
 
	
891,883
	
 
	
 
	
822,778
	
 
	
 
	
747,503
	
 

	
EXCESS RESERVE (STAT LESS ECON)
	
 
	
3,639,656
	
 
	
 
	
3,239,174
	
 
	
 
	
2,858,278
	
 
	
 
	
2,499,804
	
 
	
 
	
2,232,051
	
 
	
 
	
1,977,246
	
 
	
 
	
1,733,535
	
 
	
 
	
1,490,531
	
 
	
 
	
1,245,712
	
 
	
 
	
1,009,918
	
 
	
 
	
791,156
	
 
	
 
	
572,269
	
 
	
 
	
344,836
	
 
	
 
	
137,597
	
 
	
 
	
(56,842
	
)
	
 
	
(251,347
	
)
	
 
	
(382,387
	
)

	
EXCESS RESERVE (STAT less ECON Floored at Zero)
	
 
	
2,641,038
	
 
	
 
	
2,672,792
	
 
	
 
	
2,679,081
	
 
	
 
	
2,499,804
	
 
	
 
	
2,232,051
	
 
	
 
	
1,977,246
	
 
	
 
	
1,733,535
	
 
	
 
	
1,490,531
	
 
	
 
	
1,245,712
	
 
	
 
	
1,009,918
	
 
	
 
	
791,156
	
 
	
 
	
572,269
	
 
	
 
	
344,836
	
 
	
 
	
137,597
	
 
	
 
	
(56,842
	
)
	
 
	
(251,347
	
)
	
 
	
(382,387
	
)

	
GROSS DEFERRED PREMIUMS
	
 
	
16,793
	
 
	
 
	
15,305
	
 
	
 
	
14,397
	
 
	
 
	
14,198
	
 
	
 
	
14,628
	
 
	
 
	
16,666
	
 
	
 
	
18,916
	
 
	
 
	
21,406
	
 
	
 
	
20,249
	
 
	
 
	
18,618
	
 
	
 
	
19,478
	
 
	
 
	
18,545
	
 
	
 
	
17,103
	
 
	
 
	
15,660
	
 
	
 
	
14,227
	
 
	
 
	
16,208
	
 
	
 
	
15,658
	
 

	
NET DEFERRED PREMIUMS
	
 
	
11,690
	
 
	
 
	
10,964
	
 
	
 
	
10,624
	
 
	
 
	
10,559
	
 
	
 
	
11,291
	
 
	
 
	
12,221
	
 
	
 
	
13,812
	
 
	
 
	
15,733
	
 
	
 
	
15,118
	
 
	
 
	
14,673
	
 
	
 
	
13,937
	
 
	
 
	
13,146
	
 
	
 
	
12,370
	
 
	
 
	
11,579
	
 
	
 
	
11,316
	
 
	
 
	
10,935
	
 
	
 
	
10,255
	
 

	
PV AT 9.00% PROFITS RELEASED
	
 
	
—
	
 
	
 
	
409,588
	
 
	
 
	
763,618
	
 
	
 
	
1,063,237
	
 
	
 
	
1,270,284
	
 
	
 
	
1,452,384
	
 
	
 
	
1,616,122
	
 
	
 
	
1,766,169
	
 
	
 
	
1,902,299
	
 
	
 
	
2,022,463
	
 
	
 
	
2,126,591
	
 
	
 
	
2,219,591
	
 
	
 
	
2,302,852
	
 
	
 
	
2,372,532
	
 
	
 
	
2,434,437
	
 
	
 
	
2,494,378
	
 
	
 
	
2,536,701
	
 

	
PV AT 11.00% PROFITS RELEASED
	
 
	
—
	
 
	
 
	
402,208
	
 
	
 
	
743,595
	
 
	
 
	
1,027,308
	
 
	
 
	
1,219,832
	
 
	
 
	
1,386,107
	
 
	
 
	
1,532,922
	
 
	
 
	
1,665,037
	
 
	
 
	
1,782,738
	
 
	
 
	
1,884,763
	
 
	
 
	
1,971,580
	
 
	
 
	
2,047,721
	
 
	
 
	
2,114,661
	
 
	
 
	
2,169,673
	
 
	
 
	
2,217,665
	
 
	
 
	
2,263,298
	
 
	
 
	
2,294,938
	
 

	
PV AT 13.00% PROFITS RELEASED
	
 
	
—
	
 
	
 
	
395,090
	
 
	
 
	
724,499
	
 
	
 
	
993,413
	
 
	
 
	
1,172,664
	
 
	
 
	
1,324,736
	
 
	
 
	
1,456,634
	
 
	
 
	
1,573,225
	
 
	
 
	
1,675,257
	
 
	
 
	
1,762,134
	
 
	
 
	
1,834,753
	
 
	
 
	
1,897,315
	
 
	
 
	
1,951,343
	
 
	
 
	
1,994,958
	
 
	
 
	
2,032,334
	
 
	
 
	
2,067,244
	
 
	
 
	
2,091,020
	
 

	
PV AT 9.00% BOOK PROFITS
	
9.0%
	
 
	
 
	
615,078
	
 
	
 
	
1,143,328
	
 
	
 
	
1,595,359
	
 
	
 
	
1,936,164
	
 
	
 
	
2,237,319
	
 
	
 
	
2,506,237
	
 
	
 
	
2,752,158
	
 
	
 
	
2,975,096
	
 
	
 
	
3,171,899
	
 
	
 
	
3,342,163
	
 
	
 
	
3,494,725
	
 
	
 
	
3,632,668
	
 
	
 
	
3,747,824
	
 
	
 
	
3,845,475
	
 
	
 
	
3,932,631
	
 
	
 
	
3,993,285
	
 

	
PV AT 11.00% BOOK PROFITS
	
11.0%
	
 
	
 
	
603,996
	
 
	
 
	
1,113,381
	
 
	
 
	
1,541,415
	
 
	
 
	
1,858,314
	
 
	
 
	
2,133,298
	
 
	
 
	
2,374,423
	
 
	
 
	
2,590,953
	
 
	
 
	
2,783,711
	
 
	
 
	
2,950,806
	
 
	
 
	
3,092,764
	
 
	
 
	
3,217,670
	
 
	
 
	
3,328,573
	
 
	
 
	
3,419,487
	
 
	
 
	
3,495,192
	
 
	
 
	
3,561,544
	
 
	
 
	
3,606,888
	
 

	
PV AT 13.00% BOOK PROFITS
	
13.0%
	
 
	
 
	
593,306
	
 
	
 
	
1,084,819
	
 
	
 
	
1,490,526
	
 
	
 
	
1,785,578
	
 
	
 
	
2,037,074
	
 
	
 
	
2,253,698
	
 
	
 
	
2,444,785
	
 
	
 
	
2,611,882
	
 
	
 
	
2,754,169
	
 
	
 
	
2,872,911
	
 
	
 
	
2,975,541
	
 
	
 
	
3,065,052
	
 
	
 
	
3,137,132
	
 
	
 
	
3,196,090
	
 
	
 
	
3,246,850
	
 
	
 
	
3,280,924
	
 

	
PV AT 9.00% FEDERAL INCOME TAX
	
9.0%
	
 
	
 
	
205,490
	
 
	
 
	
379,711
	
 
	
 
	
532,122
	
 
	
 
	
665,880
	
 
	
 
	
784,935
	
 
	
 
	
890,116
	
 
	
 
	
985,989
	
 
	
 
	
1,072,797
	
 
	
 
	
1,149,436
	
 
	
 
	
1,215,572
	
 
	
 
	
1,275,134
	
 
	
 
	
1,329,816
	
 
	
 
	
1,375,292
	
 
	
 
	
1,411,038
	
 
	
 
	
1,438,253
	
 
	
 
	
1,456,584
	
 

	
PV AT 11.00% FEDERAL INCOME TAX
	
11.0%
	
 
	
 
	
201,787
	
 
	
 
	
369,786
	
 
	
 
	
514,107
	
 
	
 
	
638,482
	
 
	
 
	
747,191
	
 
	
 
	
841,501
	
 
	
 
	
925,916
	
 
	
 
	
1,000,973
	
 
	
 
	
1,066,043
	
 
	
 
	
1,121,184
	
 
	
 
	
1,169,949
	
 
	
 
	
1,213,911
	
 
	
 
	
1,249,814
	
 
	
 
	
1,277,527
	
 
	
 
	
1,298,246
	
 
	
 
	
1,311,950
	
 

	
PV AT 13.00% FEDERAL INCOME TAX
	
13.0%
	
 
	
 
	
198,216
	
 
	
 
	
360,321
	
 
	
 
	
497,113
	
 
	
 
	
612,914
	
 
	
 
	
712,337
	
 
	
 
	
797,065
	
 
	
 
	
871,561
	
 
	
 
	
936,625
	
 
	
 
	
992,035
	
 
	
 
	
1,038,158
	
 
	
 
	
1,078,226
	
 
	
 
	
1,113,709
	
 
	
 
	
1,142,173
	
 
	
 
	
1,163,756
	
 
	
 
	
1,179,606
	
 
	
 
	
1,189,904
	
 

	
Tax Reserve before unamort DAC
	
 
	
2,568,043
	
 
	
 
	
2,745,642
	
 
	
 
	
2,876,425
	
 
	
 
	
2,936,170
	
 
	
 
	
2,934,698
	
 
	
 
	
2,878,512
	
 
	
 
	
2,787,248
	
 
	
 
	
2,646,052
	
 
	
 
	
2,458,828
	
 
	
 
	
2,236,543
	
 
	
 
	
1,994,886
	
 
	
 
	
1,714,299
	
 
	
 
	
1,393,368
	
 
	
 
	
1,075,997
	
 
	
 
	
784,754
	
 
	
 
	
531,840
	
 
	
 
	
336,044
	
 

	
GAAP Benefit Reserve
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
GAAP Expense Reserve
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
Primerica - Net (Before New Conversions) - Cost of Cap Calc
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Capital (Based on 300% RBC (i=5.70%))
	
 
	
415,070
	
 
	
 
	
385,058
	
 
	
 
	
354,111
	
 
	
 
	
328,008
	
 
	
 
	
303,500
	
 
	
 
	
279,110
	
 
	
 
	
260,811
	
 
	
 
	
242,710
	
 
	
 
	
222,217
	
 
	
 
	
201,768
	
 
	
 
	
182,703
	
 
	
 
	
164,660
	
 
	
 
	
144,590
	
 
	
 
	
124,613
	
 
	
 
	
105,864
	
 
	
 
	
88,688
	
 
	
 
	
73,666
	
 

	
Capital: After-Tax int less change (i=5.70%)
	
 
	
 
	
 
	
 
	
45,391
	
 
	
 
	
45,213
	
 
	
 
	
39,223
	
 
	
 
	
36,661
	
 
	
 
	
35,635
	
 
	
 
	
28,640
	
 
	
 
	
27,763
	
 
	
 
	
29,486
	
 
	
 
	
28,683
	
 
	
 
	
26,540
	
 
	
 
	
24,813
	
 
	
 
	
26,171
	
 
	
 
	
25,334
	
 
	
 
	
23,366
	
 
	
 
	
21,098
	
 
	
 
	
18,308
	
 

	
PRE-TAX BOOK PROFIT
	
 
	
 
	
 
	
 
	
670,435
	
 
	
 
	
627,614
	
 
	
 
	
585,392
	
 
	
 
	
481,075
	
 
	
 
	
463,365
	
 
	
 
	
451,002
	
 
	
 
	
449,552
	
 
	
 
	
444,218
	
 
	
 
	
427,435
	
 
	
 
	
403,078
	
 
	
 
	
393,673
	
 
	
 
	
387,989
	
 
	
 
	
353,046
	
 
	
 
	
326,322
	
 
	
 
	
317,466
	
 
	
 
	
240,814
	
 

	
FEDERAL INCOME TAX
	
 
	
 
	
 
	
 
	
(223,984
	
)
	
 
	
(206,992
	
)
	
 
	
(197,377
	
)
	
 
	
(188,810
	
)
	
 
	
(183,181
	
)
	
 
	
(176,398
	
)
	
 
	
(175,260
	
)
	
 
	
(172,971
	
)
	
 
	
(166,452
	
)
	
 
	
(156,569
	
)
	
 
	
(153,695
	
)
	
 
	
(153,801
	
)
	
 
	
(139,421
	
)
	
 
	
(119,455
	
)
	
 
	
(99,131
	
)
	
 
	
(72,778
	
)

	
Profit After-Tax, After Cost of Capital
	
 
	
 
	
 
	
 
	
491,842
	
 
	
 
	
465,835
	
 
	
 
	
427,238
	
 
	
 
	
328,926
	
 
	
 
	
315,818
	
 
	
 
	
303,245
	
 
	
 
	
302,056
	
 
	
 
	
300,733
	
 
	
 
	
289,666
	
 
	
 
	
273,049
	
 
	
 
	
264,791
	
 
	
 
	
260,358
	
 
	
 
	
238,959
	
 
	
 
	
230,233
	
 
	
 
	
239,433
	
 
	
 
	
186,345
	
 

	
Present Values
	
 
	
 
	
 
	
 
	
 
	
 
	
9.00%
	
 
	
11.00%
	
 
	
13.00%
	
 
	
15.00%
	
 
	
20.00%
	
 
	
16.00%
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV PRE-TAX BOOK PROFIT
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
4,093,405
	
 
	
 
	
3,679,085
	
 
	
 
	
3,333,323
	
 
	
 
	
3,041,872
	
 
	
 
	
2,485,692
	
 
	
 
	
2,913,019
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV FEDERAL INCOME TAX
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
(1,479,933
	
)
	
 
	
(1,329,129
	
)
	
 
	
(1,202,592
	
)
	
 
	
(1,095,491
	
)
	
 
	
(890,222
	
)
	
 
	
(1,048,026
	
)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV Capital: After-Tax int less change (i=5.70%) less Init Cap
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
(125,102
	
)
	
 
	
(156,035
	
)
	
 
	
(181,389
	
)
	
 
	
(202,463
	
)
	
 
	
(242,033
	
)
	
 
	
(211,701
	
)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV After-Tax. After Cost of Capital
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
2,488,370
	
 
	
 
	
2,193,921
	
 
	
 
	
1,949,342
	
 
	
 
	
1,743,919
	
 
	
 
	
1,353,437
	
 
	
 
	
1,653,292
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

C-2

Milliman

 

 

	
017CIG01\15\0906

From PUCK0906B.XLS
	
Puck(Rev) @06/30/09 - Sens: 7-Year Recapture and PLIC Inforce External Res Financing@28.9% (Preliminary)

Line of Business Projection
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
10/21/09

03:55 PM
	
 
	
 
	
 
	
 

	
Existing Business at 06/30/2009 (000's)
	
2026
	
 
	
2027
	
 
	
2028
	
 
	
2029
	
 
	
2030
	
 
	
2031
	
 
	
2032
	
 
	
2033
	
 
	
2034
	
 
	
2035
	
 
	
2036
	
 
	
2037
	
 
	
2038
	
 
	
2039
	
 

	
Primerica - Net (Before New Conversions)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
GROSS PREMIUMS
	
 
	
440,511
	
 
	
 
	
387,383
	
 
	
 
	
337,677
	
 
	
 
	
303,420
	
 
	
 
	
278,522
	
 
	
 
	
265,352
	
 
	
 
	
244,863
	
 
	
 
	
223,479
	
 
	
 
	
204,668
	
 
	
 
	
179,872
	
 
	
 
	
155,783
	
 
	
 
	
133,976
	
 
	
 
	
113,325
	
 
	
 
	
81,672
	
 

	
REINSURANCE PREMIUMS (NET OF ALLOWANCE:
	
 
	
(303,319
	
)
	
 
	
(263,588
	
)
	
 
	
(215,361
	
)
	
 
	
(177,770
	
)
	
 
	
(178,870
	
)
	
 
	
(178,559
	
)
	
 
	
(177,944
	
)
	
 
	
(176,767
	
)
	
 
	
(152,134
	
)
	
 
	
(124,130
	
)
	
 
	
(101,572
	
)
	
 
	
(85,562
	
)
	
 
	
(67,987
	
)
	
 
	
(30,419
	
)

	
GROSS INVESTMENT INCOME PLUS FEE INCOME
	
 
	
20,170
	
 
	
 
	
11,007
	
 
	
 
	
4,023
	
 
	
 
	
373
	
 
	
 
	
(1,116
	
)
	
 
	
(1,700
	
)
	
 
	
(2,463
	
)
	
 
	
(3,504
	
)
	
 
	
(3,969
	
)
	
 
	
(2,998
	
)
	
 
	
(1,824
	
)
	
 
	
(1,300
	
)
	
 
	
(1,050
	
)
	
 
	
(45
	
)

	
ACCRUAL OF DISCOUNT
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
AMORTIZATION OF IMR
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INVESTMENT EXPENSE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INCOME LOST ON DEFAULTS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL INCOME
	
 
	
157,363
	
 
	
 
	
134,802
	
 
	
 
	
126,340
	
 
	
 
	
126,023
	
 
	
 
	
98,536
	
 
	
 
	
85,094
	
 
	
 
	
64,456
	
 
	
 
	
43,208
	
 
	
 
	
48,564
	
 
	
 
	
52,744
	
 
	
 
	
52,387
	
 
	
 
	
47,115
	
 
	
 
	
44,288
	
 
	
 
	
51,209
	
 

	
NET SURRENDERS
	
 
	
(1,837
	
)
	
 
	
(1,876
	
)
	
 
	
(1,917
	
)
	
 
	
(1,910
	
)
	
 
	
(1,777
	
)
	
 
	
(1,680
	
)
	
 
	
(1,557
	
)
	
 
	
(1,388
	
)
	
 
	
(1,244
	
)
	
 
	
(1,120
	
)
	
 
	
(1,004
	
)
	
 
	
(892
	
)
	
 
	
(779
	
)
	
 
	
(2,656
	
)

	
HEALTH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
DIRECT DEATH BENEFITS
	
 
	
377,374
	
 
	
 
	
332,463
	
 
	
 
	
281,032
	
 
	
 
	
234,405
	
 
	
 
	
205,916
	
 
	
 
	
200,735
	
 
	
 
	
196,698
	
 
	
 
	
193,407
	
 
	
 
	
179,449
	
 
	
 
	
148,810
	
 
	
 
	
123,181
	
 
	
 
	
103,646
	
 
	
 
	
85,204
	
 
	
 
	
64,084
	
 

	
REINSURANCE DEATH BENEFITS
	
 
	
(266,032
	
)
	
 
	
(231,964
	
)
	
 
	
(194,913
	
)
	
 
	
(159,052
	
)
	
 
	
(138,015
	
)
	
 
	
(136,921
	
)
	
 
	
(136,706
	
)
	
 
	
(137,175
	
)
	
 
	
(127,838
	
)
	
 
	
(103,732
	
)
	
 
	
(83,762
	
)
	
 
	
(69,602
	
)
	
 
	
(57,687
	
)
	
 
	
(51,995
	
)

	
ACQUISITION EXPENSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
OTHER EXPENSES
	
 
	
29,675
	
 
	
 
	
26,003
	
 
	
 
	
22,217
	
 
	
 
	
18,989
	
 
	
 
	
17,365
	
 
	
 
	
16,609
	
 
	
 
	
15,813
	
 
	
 
	
14,970
	
 
	
 
	
13,517
	
 
	
 
	
11,215
	
 
	
 
	
9,305
	
 
	
 
	
7,896
	
 
	
 
	
6,598
	
 
	
 
	
4,982
	
 

	
NET COMMISSIONS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
COST OF FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INCREASE IN LOADING
	
 
	
(532
	
)
	
 
	
965
	
 
	
 
	
(249
	
)
	
 
	
1,424
	
 
	
 
	
515
	
 
	
 
	
278
	
 
	
 
	
(481
	
)
	
 
	
(1,010
	
)
	
 
	
954
	
 
	
 
	
(359
	
)
	
 
	
(780
	
)
	
 
	
(833
	
)
	
 
	
(867
	
)
	
 
	
(4,428
	
)

	
INCREASE IN RESERVES
	
 
	
(161,972
	
)
	
 
	
(131,708
	
)
	
 
	
(72,550
	
)
	
 
	
(16,481
	
)
	
 
	
(5,307
	
)
	
 
	
(4,938
	
)
	
 
	
(12,031
	
)
	
 
	
(15,550
	
)
	
 
	
10,634
	
 
	
 
	
16,828
	
 
	
 
	
7,784
	
 
	
 
	
999
	
 
	
 
	
4,117
	
 
	
 
	
15,058
	
 

	
INCR IN RESERVE FINANCING LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL DISBURSEMENTS
	
 
	
(23,323
	
)
	
 
	
(6,116
	
)
	
 
	
33,620
	
 
	
 
	
77,375
	
 
	
 
	
78,697
	
 
	
 
	
74,082
	
 
	
 
	
61,737
	
 
	
 
	
53,253
	
 
	
 
	
75,473
	
 
	
 
	
71,642
	
 
	
 
	
54,723
	
 
	
 
	
41,213
	
 
	
 
	
36,586
	
 
	
 
	
25,045
	
 

	
STATUTORY GAIN
	
 
	
180,686
	
 
	
 
	
140,919
	
 
	
 
	
92,719
	
 
	
 
	
48,648
	
 
	
 
	
19,840
	
 
	
 
	
11,012
	
 
	
 
	
2,720
	
 
	
 
	
(10,046
	
)
	
 
	
(26,909
	
)
	
 
	
(18,899
	
)
	
 
	
(2,336
	
)
	
 
	
5,902
	
 
	
 
	
7,702
	
 
	
 
	
26,164
	
 

	
CAPITAL GAINS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
GAIN ON CALLS AND ROLLOVER
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS DEFAULT LOSSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS IMR CAPITALIZATION
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
BOOK PROFIT
	
 
	
180,686
	
 
	
 
	
140,919
	
 
	
 
	
92,719
	
 
	
 
	
48,648
	
 
	
 
	
19,840
	
 
	
 
	
11,012
	
 
	
 
	
2,720
	
 
	
 
	
(10,046
	
)
	
 
	
(26,909
	
)
	
 
	
(18,899
	
)
	
 
	
(2,336
	
)
	
 
	
5,902
	
 
	
 
	
7,702
	
 
	
 
	
26,164
	
 

	
INCREASE IN SURPLUS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
FEDERAL INCOME TAX
	
 
	
52,712
	
 
	
 
	
39,781
	
 
	
 
	
24,398
	
 
	
 
	
10,295
	
 
	
 
	
726
	
 
	
 
	
(1,434
	
)
	
 
	
(3,617
	
)
	
 
	
(7,543
	
)
	
 
	
(12,672
	
)
	
 
	
(9,560
	
)
	
 
	
(3,583
	
)
	
 
	
(566
	
)
	
 
	
259
	
 
	
 
	
7,524
	
 

	
PROFITS RELEASED
	
 
	
127,974
	
 
	
 
	
101,137
	
 
	
 
	
68,321
	
 
	
 
	
38,353
	
 
	
 
	
19,114
	
 
	
 
	
12,446
	
 
	
 
	
6,336
	
 
	
 
	
(2,503
	
)
	
 
	
(14,237
	
)
	
 
	
(9,338
	
)
	
 
	
1,247
	
 
	
 
	
6,468
	
 
	
 
	
7,443
	
 
	
 
	
18,640
	
 

	
STATUTORY RESERVE (GA) (Canada=GAAP)
	
 
	
203,145
	
 
	
 
	
71,437
	
 
	
 
	
(1,112
	
)
	
 
	
(17,594
	
)
	
 
	
(22,901
	
)
	
 
	
(27,839
	
)
	
 
	
(39,869
	
)
	
 
	
(55,419
	
)
	
 
	
(44,785
	
)
	
 
	
(27,956
	
)
	
 
	
(20,173
	
)
	
 
	
(19,174
	
)
	
 
	
(15,058
	
)
	
 
	
—
	
 

	
RESERVE FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL LIABILITY (GA)
	
 
	
193,527
	
 
	
 
	
62,633
	
 
	
 
	
(10,061
	
)
	
 
	
(27,653
	
)
	
 
	
(33,844
	
)
	
 
	
(39,543
	
)
	
 
	
(49,916
	
)
	
 
	
(63,964
	
)
	
 
	
(52,886
	
)
	
 
	
(35,237
	
)
	
 
	
(26,492
	
)
	
 
	
(24,417
	
)
	
 
	
(19,206
	
)
	
 
	
—
	
 

	
SEPARATE ACCOUNT LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TAX RESERVE (GA)
	
 
	
(33,526
	
)
	
 
	
(137,162
	
)
	
 
	
(186,846
	
)
	
 
	
(185,205
	
)
	
 
	
(173,629
	
)
	
 
	
(164,219
	
)
	
 
	
(161,539
	
)
	
 
	
(164,082
	
)
	
 
	
(143,708
	
)
	
 
	
(117,643
	
)
	
 
	
(100,997
	
)
	
 
	
(91,403
	
)
	
 
	
(79,229
	
)
	
 
	
(55,356
	
)

	
INTEREST MAINTENANCE RESERVE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
POLICIES IN FORCE (UNSCALED)
	
 
	
284,498
	
 
	
 
	
238,073
	
 
	
 
	
192,130
	
 
	
 
	
160,266
	
 
	
 
	
148,799
	
 
	
 
	
138,381
	
 
	
 
	
129,263
	
 
	
 
	
120,384
	
 
	
 
	
97,664
	
 
	
 
	
75,745
	
 
	
 
	
60,960
	
 
	
 
	
49,631
	
 
	
 
	
39,378
	
 
	
 
	
—
	
 

	
INSURANCE IN FORCE (NET)
	
 
	
19,677,811
	
 
	
 
	
15,433,294
	
 
	
11,866,442
	
 
	
9.182,259
	
 
	
 
	
8,439,733
	
 
	
 
	
7,753,031
	
 
	
 
	
7,013,809
	
 
	
 
	
6,386,939
	
 
	
 
	
5,338,440
	
 
	
 
	
4,334,747
	
 
	
 
	
3,619,827
	
 
	
2.617,631
	
 
	
 
	
1,939,061
	
 
	
 
	
—
	
 

	
CASH VALUE IN FORCE
	
 
	
301
	
 
	
 
	
(376
	
)
	
 
	
(1,223
	
)
	
 
	
(1,995
	
)
	
 
	
(2,037
	
)
	
 
	
(1,471
	
)
	
 
	
(4
	
)
	
 
	
1,169
	
 
	
 
	
184
	
 
	
 
	
(1,024
	
)
	
 
	
(1,208
	
)
	
 
	
(1,110
	
)
	
 
	
(1,250
	
)
	
 
	
—
	
 

	
ECONOMIC RESERVE (Canada=GAAP)
	
 
	
673,983
	
 
	
 
	
603,514
	
 
	
 
	
550,180
	
 
	
 
	
513,034
	
 
	
 
	
460,749
	
 
	
 
	
400,998
	
 
	
 
	
329,363
	
 
	
 
	
246,367
	
 
	
 
	
176,042
	
 
	
 
	
120,401
	
 
	
 
	
74,378
	
 
	
 
	
33,275
	
 
	
 
	
840
	
 
	
 
	
—
	
 

	
EXCESS RESERVE (STAT LESS ECON)
	
 
	
(470,838
	
)
	
 
	
(532,077
	
)
	
 
	
(551,293
	
)
	
 
	
(530,627
	
)
	
 
	
(483,650
	
)
	
 
	
(428,837
	
)
	
 
	
(369,232
	
)
	
 
	
(301,786
	
)
	
 
	
(220,827
	
)
	
 
	
(148,358
	
)
	
 
	
(94,551
	
)
	
 
	
(52,449
	
)
	
 
	
(15,898
	
)
	
 
	
—
	
 

	
EXCESS RESERVE (STAT less ECON Floored at Zero)
	
 
	
(470,838
	
)
	
 
	
(532,077
	
)
	
 
	
(551,293
	
)
	
 
	
(530,627
	
)
	
 
	
(483,650
	
)
	
 
	
(428,837
	
)
	
 
	
(369,232
	
)
	
 
	
(301,786
	
)
	
 
	
(220,827
	
)
	
 
	
(148,358
	
)
	
 
	
(94,551
	
)
	
 
	
(52,449
	
)
	
 
	
(15,898
	
)
	
 
	
—
	
 

	
GROSS DEFERRED PREMIUMS
	
 
	
14,489
	
 
	
 
	
14,641
	
 
	
 
	
14,537
	
 
	
 
	
17,070
	
 
	
 
	
18,470
	
 
	
 
	
19,509
	
 
	
 
	
17,371
	
 
	
 
	
14,859
	
 
	
 
	
15,369
	
 
	
 
	
14,189
	
 
	
 
	
12,447
	
 
	
 
	
10,537
	
 
	
 
	
8,576
	
 
	
 
	
—
	
 

	
NET DEFERRED PREMIUMS
	
 
	
9,618
	
 
	
 
	
8,804
	
 
	
 
	
8,949
	
 
	
 
	
10,059
	
 
	
 
	
10,943
	
 
	
 
	
11,705
	
 
	
 
	
10,047
	
 
	
 
	
8,545
	
 
	
 
	
8,101
	
 
	
 
	
7,280
	
 
	
 
	
6,319
	
 
	
 
	
5,242
	
 
	
 
	
4,148
	
 
	
 
	
—
	
 

	
PV AT 9.00% PROFITS RELEASED
	
 
	
2,566,273
	
 
	
 
	
2,587,713
	
 
	
 
	
2,601,001
	
 
	
 
	
2,607,844
	
 
	
 
	
2,610,973
	
 
	
 
	
2,612,842
	
 
	
 
	
2,613,715
	
 
	
 
	
2,613,399
	
 
	
 
	
2,611,748
	
 
	
 
	
2,610,754
	
 
	
 
	
2,610,876
	
 
	
 
	
2,611,455
	
 
	
 
	
2,612,067
	
 
	
 
	
2,613,472
	
 

	
PV AT 11.00% PROFITS RELEASED
	
 
	
2,316,647
	
 
	
 
	
2,332,103
	
 
	
 
	
2,341,509
	
 
	
 
	
2,346,266
	
 
	
 
	
2,348,402
	
 
	
 
	
2,349,655
	
 
	
 
	
2,350,230
	
 
	
 
	
2,350,025
	
 
	
 
	
2,348,977
	
 
	
 
	
2,348,358
	
 
	
 
	
2,348,432
	
 
	
 
	
2,348,780
	
 
	
 
	
2,349,141
	
 
	
 
	
2,349,956
	
 

	
PV AT 13.00% PROFITS RELEASED
	
 
	
2,107,045
	
 
	
 
	
2,118,252
	
 
	
 
	
2,124,952
	
 
	
 
	
2,128,281
	
 
	
 
	
2,129,748
	
 
	
 
	
2,130,594
	
 
	
 
	
2,130,975
	
 
	
 
	
2,130,842
	
 
	
 
	
2,130,172
	
 
	
 
	
2,129,782
	
 
	
 
	
2,129,828
	
 
	
 
	
2,130,040
	
 
	
 
	
2,130,255
	
 
	
 
	
2,130,731
	
 

	
PV AT 9.00% BOOK PROFITS
	
 
	
4,035,037
	
 
	
 
	
4,064,911
	
 
	
 
	
4,082,944
	
 
	
 
	
4,091,624
	
 
	
 
	
4,094,872
	
 
	
 
	
4,096,526
	
 
	
 
	
4,096,900
	
 
	
 
	
4,095,631
	
 
	
 
	
4,092,510
	
 
	
 
	
4,090,499
	
 
	
 
	
4,090,271
	
 
	
 
	
4,090,800
	
 
	
 
	
4,091,433
	
 
	
 
	
4,093,405
	
 

	
PV AT 11.00% BOOK PROFITS
	
 
	
3,637,538
	
 
	
 
	
3,659,073
	
 
	
 
	
3,671,839
	
 
	
 
	
3,677,873
	
 
	
 
	
3,680,090
	
 
	
 
	
3,681,198
	
 
	
 
	
3,681,445
	
 
	
 
	
3,680,624
	
 
	
 
	
3,678,643
	
 
	
 
	
3,677,390
	
 
	
 
	
3,677,251
	
 
	
 
	
3,677,568
	
 
	
 
	
3,677,942
	
 
	
 
	
3,679,085
	
 

	
PV AT 13.00% BOOK PROFITS
	
 
	
3,303,550
	
 
	
 
	
3,319,165
	
 
	
 
	
3,328,258
	
 
	
 
	
3,332,479
	
 
	
 
	
3,334,003
	
 
	
 
	
3,334,751
	
 
	
 
	
3,334,915
	
 
	
 
	
3,334,380
	
 
	
 
	
3,333,113
	
 
	
 
	
3,332,325
	
 
	
 
	
3,332,239
	
 
	
 
	
3,332,432
	
 
	
 
	
3,332,654
	
 
	
 
	
3,333,323
	
 

	
PV AT 9.00% FEDERAL INCOME TAX
	
 
	
1,468,764
	
 
	
 
	
1,477,198
	
 
	
 
	
1,481,943
	
 
	
 
	
1,483,780
	
 
	
 
	
1,483,899
	
 
	
 
	
1,483,683
	
 
	
 
	
1,483,185
	
 
	
 
	
1,482,232
	
 
	
 
	
1,480,762
	
 
	
 
	
1,479,745
	
 
	
 
	
1,479,395
	
 
	
 
	
1,479,345
	
 
	
 
	
1,479,366
	
 
	
 
	
1,479,933
	
 

	
PV AT 11.00% FEDERAL INCOME TAX
	
 
	
1,320,891
	
 
	
 
	
1,326,971
	
 
	
 
	
1,330,330
	
 
	
 
	
1,331,607
	
 
	
 
	
1,331,688
	
 
	
 
	
1,331,543
	
 
	
 
	
1,331,215
	
 
	
 
	
1,330,599
	
 
	
 
	
1,329,666
	
 
	
 
	
1,329,032
	
 
	
 
	
1,328,818
	
 
	
 
	
1,328,788
	
 
	
 
	
1,328,800
	
 
	
 
	
1,329,129
	
 

	
PV AT 13 .00% FEDERAL INCOME TAX
	
 
	
1,196,505
	
 
	
 
	
1,200,913
	
 
	
 
	
1,203,305
	
 
	
 
	
1,204,199
	
 
	
 
	
1,204,255
	
 
	
 
	
1,204,157
	
 
	
 
	
1,203,940
	
 
	
 
	
1,203,538
	
 
	
 
	
1,202,941
	
 
	
 
	
1,202,543
	
 
	
 
	
1,202,411
	
 
	
 
	
1,202,392
	
 
	
 
	
1,202,400
	
 
	
 
	
1,202,592
	
 

	
Tax Reserve before unamort DAC
	
 
	
182,712
	
 
	
57,931
	
 
	
 
	
(11,365
	
)
	
 
	
(27,865
	
)
	
 
	
(34,021
	
)
	
 
	
(39,700
	
)
	
 
	
(50,072
	
)
	
 
	
(64,141
	
)
	
 
	
(53,111
	
)
	
 
	
(35,490
	
)
	
 
	
(26,756
	
)
	
 
	
(24,673
	
)
	
 
	
(19,436
	
)
	
 
	
—
	
 

	
GAAP Benefit Reserve
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
GAAP Expense Reserve
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
Primerica - Net (Before New Conversions) - Cost c
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Capital (Based on 300% RBC (i=5.70%))
	
 
	
60,504
	
 
	
 
	
47,484
	
 
	
 
	
37,210
	
 
	
 
	
30,814
	
 
	
 
	
28,213
	
 
	
 
	
26,410
	
 
	
 
	
23,940
	
 
	
 
	
21,436
	
 
	
 
	
19,018
	
 
	
 
	
16,445
	
 
	
 
	
14,121
	
 
	
 
	
11,459
	
 
	
 
	
9,343
	
 
	
 
	
4,900
	
 

	
Capital: After-Tax int less change (i=5.70%)
	
 
	
15,891
	
 
	
 
	
15,262
	
 
	
 
	
12,033
	
 
	
 
	
7,775
	
 
	
 
	
3,742
	
 
	
 
	
2,848
	
 
	
 
	
3,449
	
 
	
 
	
3,391
	
 
	
 
	
3,212
	
 
	
 
	
3,277
	
 
	
 
	
2,933
	
 
	
 
	
3,185
	
 
	
 
	
2,541
	
 
	
 
	
4,788
	
 

	
PRE-TAX BOOK PROFIT
	
 
	
180,686
	
 
	
 
	
140,919
	
 
	
 
	
92,719
	
 
	
 
	
48,648
	
 
	
 
	
19,840
	
 
	
 
	
11,012
	
 
	
 
	
2,720
	
 
	
 
	
(10,046
	
)
	
 
	
(26,909
	
)
	
 
	
(18,899
	
)
	
 
	
(2,336
	
)
	
 
	
5,902
	
 
	
 
	
7,702
	
 
	
 
	
26,164
	
 

	
FEDERAL INCOME TAX
	
 
	
(52,712
	
)
	
 
	
(39,781
	
)
	
 
	
(24,398
	
)
	
 
	
(10,295
	
)
	
 
	
(726
	
)
	
 
	
1,434
	
 
	
 
	
3,617
	
 
	
 
	
7,543
	
 
	
 
	
12,672
	
 
	
 
	
9,560
	
 
	
 
	
3,583
	
 
	
 
	
566
	
 
	
 
	
(259
	
)
	
 
	
(7,524
	
)

	
Profit After-Tax, After Cost of Capital
	
 
	
143,865
	
 
	
 
	
116,400
	
 
	
 
	
80,354
	
 
	
 
	
46,128
	
 
	
 
	
22,856
	
 
	
 
	
15,294
	
 
	
 
	
9,785
	
 
	
 
	
888
	
 
	
 
	
(11,025
	
)
	
 
	
(6,061
	
)
	
 
	
4,180
	
 
	
 
	
9,653
	
 
	
 
	
9,984
	
 
	
 
	
23,429
	
 

	
Present Values
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV PRE-TAX BOOK PROFIT
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV FEDERAL INCOME TAX
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV Capital: After-Tax int less change (i=5.70%) less Init Cap
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV After-Tax, After Cost of Capital
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

 

C-3

Milliman

 

 

	
017CIG01\15\0906
	
 
	
Puck(Rev) @06/30/09 - Sens: 7-Year Recapture and PLIC Inforce External
	
 
	
 
	
10/21/09

	
From PUCK0906B.XLS
	
 
	
Line of Business Projection - Present Value of Components of Profi
	
 
	
 
	
03:55 PM

	
 
	
 
	
As of June 30, 2009
	
 
	
 
	
 

	
Existing Business at 06/30/2009 (000’s)
	
  
	
9.00%
	
 
	
 
	
11.00%
	
 
	
 
	
13.00%
	
 
	
 
	
15.00%
	
 
	
  
	
 

	
Primerica - Net (Before New Conversions)
	
 
	
Value of Existing Business at 06/30/2009 (000’s)
	
 
	
 
	
 

	
GROSS PREMIUMS
	
 
	
9,927,846
	
 
	
 
	
 
	
8,888,030
	
 
	
 
	
 
	
8,034,397
	
 
	
 
	
 
	
7,323,239
	
 
	
 
	
 

	
REINSURANCE PREMIUMS (NET OF

   ALLOWANCE:
	
 
	
(4,719,263
	
) 
	
 
	
 
	
(4,135,016
	
)
	
 
	
 
	
(3,664,307
	
)
	
 
	
 
	
(3,279,323
	
)
	
 
	
 

	
GROSS INVESTMENT INCOME PLUS FEE

   INCOME
	
 
	
1,072,960
	
 
	
 
	
 
	
970,354
	
 
	
 
	
 
	
883,028
	
 
	
 
	
 
	
808,165
	
 
	
 
	
 

	
ACCRUAL OF DISCOUNT
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
AMORTIZATION OF IMR
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
LESS INVESTMENT EXPENSE
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
LESS INCOME LOST ON DEFAULTS
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
TOTAL INCOME
	
 
	
6,281,543
	
 
	
 
	
 
	
5,723,367
	
 
	
 
	
 
	
5,253,118
	
 
	
 
	
 
	
4,852,081
	
 
	
 
	
 

	
NET SURRENDERS
	
 
	
(29,802
	
) 
	
 
	
 
	
(26,285
	
)
	
 
	
 
	
(23,504
	
)
	
 
	
 
	
(21,261
	
)
	
 
	
 

	
HEALTH BENEFITS
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
DIRECT DEATH BENEFITS
	
 
	
6,188,951
	
 
	
 
	
 
	
5,465,007
	
 
	
 
	
 
	
4,879,021
	
 
	
 
	
 
	
4,397,414
	
 
	
 
	
 

	
REINSURANCE DEATH BENEFITS
	
 
	
(4,030,003
	
) 
	
 
	
 
	
(3,533,332
	
)
	
 
	
 
	
(3,133,019
	
)
	
 
	
 
	
(2,805,482
	
)
	
 
	
 

	
ACQUISITION EXPENSES
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
OTHER EXPENSES
	
 
	
655,453
	
 
	
 
	
 
	
587,700
	
 
	
 
	
 
	
532,018
	
 
	
 
	
 
	
485,580
	
 
	
 
	
 

	
NET COMMISSIONS
	
 
	
95,562
	
 
	
 
	
 
	
90,930
	
 
	
 
	
 
	
86,732
	
 
	
 
	
 
	
82,912
	
 
	
 
	
 

	
COST OF FINANCING
	
 
	
170,760
	
 
	
 
	
 
	
157,575
	
 
	
 
	
 
	
146,011
	
 
	
 
	
 
	
135,816
	
 
	
 
	
 

	
INCREASE IN LOADING
	
 
	
(651
	
) 
	
 
	
 
	
(575
	
)
	
 
	
 
	
(554
	
)
	
 
	
 
	
(559
	
)
	
 
	
 

	
INCREASE IN RESERVES
	
 
	
(1,351,260
	
) 
	
 
	
 
	
(1,120,652
	
)
	
 
	
 
	
(936,151
	
)
	
 
	
 
	
(787,347
	
)
	
 
	
 

	
INCR INRESERVE FINANCING LIABILITY
	
 
	
489,130
	
 
	
 
	
 
	
423,915
	
 
	
 
	
 
	
369,242
	
 
	
 
	
 
	
323,135
	
 
	
 
	
 

	
TOTAL DISBURSEMENTS
	
 
	
2,188,139
	
 
	
 
	
 
	
2,044,283
	
 
	
 
	
 
	
1,919,795
	
 
	
 
	
 
	
1,810,209
	
 
	
 
	
 

	
STATUTORY GAIN
	
 
	
4,093,405
	
 
	
 
	
 
	
3,679,085
	
 
	
 
	
 
	
3,333,323
	
 
	
 
	
 
	
3,041,872
	
 
	
 
	
 

	
CAPITAL GAINS
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
GAIN ON CALLS AND ROLLOVER
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
LESS DEFAULT LOSSES
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
LESS IMR CAPITALIZATION
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
BOOK PROFIT
	
 
	
4,093,405
	
 
	
 
	
 
	
3,679,085
	
 
	
 
	
 
	
3,333,323
	
 
	
 
	
 
	
3,041,872
	
 
	
 
	
 

	
INCREASE IN SURPLUS
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
FEDERAL INCOME TAX
	
 
	
1,479,933
	
 
	
 
	
 
	
1,329,129
	
 
	
 
	
 
	
1,202,592
	
 
	
 
	
 
	
1,095,491
	
 
	
 
	
 

	
PROFITS RELEASED
	
 
	
2,613,472
	
 
	
 
	
 
	
2,349,956
	
 
	
 
	
 
	
2,130,731
	
 
	
 
	
 
	
1,946,382
	
 
	
 
	
 

 

 

 

C-4

Milliman

 

 

	
017CIG01\15\0906
	
Puck(Rev) @06/30/09 - Sens: 7-Year Recapture and PLIC Inforce External Res Financing@28.9% (Preliminary) 
	
 
	
10/21/09
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
From PUCK0906B.XLS
	
Line of Business Projection
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
03:55PM
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Existing Business at 06/30/2009 (000's)
	
2009
	
 
	
2010
	
 
	
2011
	
 
	
2012
	
 
	
2013
	
 
	
2014
	
 
	
2015
	
 
	
2016
	
 
	
2017
	
 
	
2018
	
 
	
2019
	
 
	
2020
	
 
	
2021
	
 
	
2022
	
 
	
2023
	
 
	
2024
	
 
	
2025
	
 

	
Primerica New Conversions - Net
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
GROSS PREMIUMS
	
 
	
—
	
 
	
 
	
26,437
	
 
	
 
	
70,844
	
 
	
 
	
103,618
	
 
	
 
	
135,521
	
 
	
 
	
165,470
	
 
	
 
	
193,421
	
 
	
 
	
220,384
	
 
	
 
	
233,207
	
 
	
 
	
235,829
	
 
	
 
	
240,919
	
 
	
 
	
237,879
	
 
	
 
	
230,755
	
 
	
 
	
223,041
	
 
	
 
	
215,484
	
 
	
 
	
208,747
	
 
	
 
	
203,338
	
 

	
REINSURANCE PREMIUMS (NET OF ALLOWANCES)
	
 
	
—
	
 
	
 
	
(14,300
	
)
	
 
	
(21,579
	
)
	
 
	
(26,368
	
)
	
 
	
(31,477
	
)
	
 
	
(37,516
	
)
	
 
	
(54,686
	
)
	
 
	
(73,665
	
)
	
 
	
(80,472
	
) 
	
 
	
(88,298
	
)
	
 
	
(96,786
	
)
	
 
	
(96,880
	
)
	
 
	
(96,694
	
)
	
 
	
(95,274
	
)
	
 
	
(93,461
	
)
	
 
	
(91,163
	
)
	
 
	
(82,561
	
)

	
GROSS INVESTMENT INCOME PLUS FEE INCOME
	
 
	
—
	
 
	
 
	
(705
	
)
	
 
	
10,161
	
 
	
 
	
10,046
	
 
	
 
	
10,394
	
 
	
 
	
11,391
	
 
	
 
	
12,731
	
 
	
 
	
14,041
	
 
	
 
	
15,755
	
 
	
 
	
17,031
	
 
	
 
	
17,497
	
 
	
 
	
17,295
	
 
	
 
	
16,848
	
 
	
 
	
16,118
	
 
	
 
	
14,904
	
 
	
 
	
13,421
	
 
	
 
	
11,931
	
 

	
ACCRUAL OF DISCOUNT
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
AMORTIZATION OF IMR
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INVESTMENT EXPENSE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INCOME LOST ON DEFAULTS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL INCOME
	
 
	
—
	
 
	
 
	
11,432
	
 
	
 
	
59,425
	
 
	
 
	
87,297
	
 
	
 
	
114,437
	
 
	
 
	
139,345
	
 
	
 
	
151,467
	
 
	
 
	
160,759
	
 
	
 
	
168,490
	
 
	
 
	
164,562
	
 
	
 
	
161,630
	
 
	
 
	
158,294
	
 
	
 
	
150,909
	
 
	
 
	
143,885
	
 
	
 
	
136,927
	
 
	
 
	
131,005
	
 
	
 
	
132,708
	
 

	
NET SURRENDERS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
HEALTH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
DIRECT DEATH BENEFITS
	
 
	
—
	
 
	
 
	
17,706
	
 
	
 
	
51,327
	
 
	
 
	
77,506
	
 
	
 
	
103,974
	
 
	
 
	
130,281
	
 
	
 
	
156,775
	
 
	
 
	
183,704
	
 
	
 
	
202,673
	
 
	
 
	
214,985
	
 
	
 
	
229,339
	
 
	
 
	
230,412
	
 
	
 
	
219,047
	
 
	
 
	
209,342
	
 
	
 
	
198,136
	
 
	
 
	
186,492
	
 
	
 
	
174,617
	
 

	
REINSURANCE DEATH BENEFITS
	
 
	
—
	
 
	
 
	
(7,996
	
)
	
 
	
(18,547
	
)
	
 
	
(24,267
	
)
	
 
	
(30,096
	
)
	
 
	
(36,265
	
)
	
 
	
(48,876
	
)
	
 
	
(67,165
	
)
	
 
	
(78,674
	
) 
	
 
	
(84,067
	
)
	
 
	
(90,742
	
)
	
 
	
(91,457
	
)
	
 
	
(88,772
	
)
	
 
	
(87,553
	
)
	
 
	
(85,993
	
)
	
 
	
(84,194
	
)
	
 
	
(79,629
	
)

	
ACQUISITION EXPENSES
	
 
	
—
	
 
	
 
	
3,116
	
 
	
 
	
2,433
	
 
	
 
	
1,974
	
 
	
 
	
1,841
	
 
	
 
	
1,783
	
 
	
 
	
1,623
	
 
	
 
	
1,776
	
 
	
 
	
610
	
 
	
 
	
767
	
 
	
 
	
813
	
 
	
 
	
147
	
 
	
 
	
162
	
 
	
 
	
154
	
 
	
 
	
134
	
 
	
 
	
139
	
 
	
 
	
81
	
 

	
OTHER EXPENSES
	
 
	
—
	
 
	
 
	
1,709
	
 
	
 
	
4,547
	
 
	
 
	
6,535
	
 
	
 
	
8,421
	
 
	
 
	
10,132
	
 
	
 
	
11,670
	
 
	
 
	
13,158
	
 
	
 
	
13,955
	
 
	
 
	
14,212
	
 
	
 
	
14,611
	
 
	
 
	
14,114
	
 
	
 
	
13,023
	
 
	
 
	
12,131
	
 
	
 
	
11,257
	
 
	
 
	
10,453
	
 
	
 
	
9,651
	
 

	
NET COMMISSIONS
	
 
	
—
	
 
	
 
	
22,329
	
 
	
 
	
25,487
	
 
	
 
	
22,155
	
 
	
 
	
21,954
	
 
	
 
	
22,455
	
 
	
 
	
22,724
	
 
	
 
	
23,672
	
 
	
 
	
11,162
	
 
	
 
	
10,487
	
 
	
 
	
11,188
	
 
	
 
	
3,216
	
 
	
 
	
2,219
	
 
	
 
	
2,248
	
 
	
 
	
2,016
	
 
	
 
	
2,001
	
 
	
 
	
1,302
	
 

	
COST OF FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INCREASE IN LOADING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INCREASE IN RESERVES
	
 
	
—
	
 
	
 
	
186,253
	
 
	
 
	
(6,675
	
)
	
 
	
3,792
	
 
	
 
	
16,685
	
 
	
 
	
25,884
	
 
	
 
	
24,604
	
 
	
 
	
24,360
	
 
	
 
	
28,319
	
 
	
 
	
14,286
	
 
	
 
	
(6,376
	
)
	
 
	
(9,745
	
)
	
 
	
(14,332
	
)
	
 
	
(23,825
	
)
	
 
	
(29,118
	
)
	
 
	
(32,177
	
)
	
 
	
(26,257
	
)

	
INCR IN RESERVE FINANCING LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL DISBURSEMENTS
	
 
	
—
	
 
	
 
	
223,117
	
 
	
 
	
58,572
	
 
	
 
	
87,695
	
 
	
 
	
122,780
	
 
	
 
	
154,270
	
 
	
 
	
168,521
	
 
	
 
	
179,505
	
 
	
 
	
178,044
	
 
	
 
	
170,670
	
 
	
 
	
158,834
	
 
	
 
	
146,686
	
 
	
 
	
131,346
	
 
	
 
	
112,497
	
 
	
 
	
96,433
	
 
	
 
	
82,714
	
 
	
 
	
79,765
	
 

	
STATUTORY GAIN
	
 
	
—
	
 
	
 
	
(211,685
	
)
	
 
	
853
	
 
	
 
	
(398
	
)
	
 
	
(8,343
	
)
	
 
	
(14,924
	
)
	
 
	
(17,054
	
)
	
 
	
(18,746
	
)
	
 
	
(9,555
	
) 
	
 
	
(6,109
	
)
	
 
	
2,796
	
 
	
 
	
11,609
	
 
	
 
	
19,563
	
 
	
 
	
31,388
	
 
	
 
	
40,494
	
 
	
 
	
48,291
	
 
	
 
	
52,943
	
 

	
CAPITAL GAINS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
GAIN ON CALLS AND ROLLOVER
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS DEFAULT LOSSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS IMR CAPITALIZATION
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
BOOK PROFIT
	
 
	
—
	
 
	
 
	
(211,685
	
)
	
 
	
853
	
 
	
 
	
(398
	
)
	
 
	
(8,343
	
)
	
 
	
(14,924
	
)
	
 
	
(17,054
	
)
	
 
	
(18,746
	
)
	
 
	
(9,555
	
) 
	
 
	
(6,109
	
)
	
 
	
2,796
	
 
	
 
	
11,609
	
 
	
 
	
19,563
	
 
	
 
	
31,388
	
 
	
 
	
40,494
	
 
	
 
	
48,291
	
 
	
 
	
52,943
	
 

	
INCREASE IN SURPLUS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
FEDERAL INCOME TAX
	
 
	
—
	
 
	
 
	
(6,687
	
)
	
 
	
(2,966
	
)
	
 
	
(5,955
	
)
	
 
	
(7,627
	
)
	
 
	
(9,023
	
)
	
 
	
(9,150
	
)
	
 
	
(9,139
	
)
	
 
	
(5,637
	
) 
	
 
	
(4,643
	
)
	
 
	
(1,683
	
)
	
 
	
2,880
	
 
	
 
	
6,751
	
 
	
 
	
10,365
	
 
	
 
	
13,140
	
 
	
 
	
15,578
	
 
	
 
	
17,318
	
 

	
PROFITS RELEASED
	
 
	
—
	
 
	
 
	
(204,998
	
)
	
 
	
3,819
	
 
	
 
	
5,557
	
 
	
 
	
(716
	
)
	
 
	
(5,901
	
)
	
 
	
(7,904
	
)
	
 
	
(9,606
	
)
	
 
	
(3,918
	
) 
	
 
	
(1,465
	
)
	
 
	
4,478
	
 
	
 
	
8,729
	
 
	
 
	
12,812
	
 
	
 
	
21,023
	
 
	
 
	
27,354
	
 
	
 
	
32,712
	
 
	
 
	
35,626
	
 

	
STATUTORY RESERVE (GA) (Canada=GAAP)
	
 
	
—
	
 
	
 
	
186,253
	
 
	
 
	
179,578
	
 
	
 
	
183,370
	
 
	
 
	
200,054
	
 
	
 
	
225,938
	
 
	
 
	
250,542
	
 
	
 
	
274,902
	
 
	
 
	
303,221
	
 
	
 
	
317,508
	
 
	
 
	
311,132
	
 
	
 
	
301,387
	
 
	
 
	
287,055
	
 
	
 
	
263,230
	
 
	
 
	
234,113
	
 
	
 
	
201,936
	
 
	
 
	
175,679
	
 

	
RESERVE FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL LIABILITY (GA)
	
 
	
—
	
 
	
 
	
186,253
	
 
	
 
	
179,578
	
 
	
 
	
183,370
	
 
	
 
	
200,054
	
 
	
 
	
225,938
	
 
	
 
	
250,542
	
 
	
 
	
274,902
	
 
	
 
	
303,221
	
 
	
 
	
317,508
	
 
	
 
	
311,132
	
 
	
 
	
301,387
	
 
	
 
	
287,055
	
 
	
 
	
263,230
	
 
	
 
	
234,113
	
 
	
 
	
201,936
	
 
	
 
	
175,679
	
 

	
SEPARATE ACCOUNT LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TAX RESERVE (GA)
	
 
	
—
	
 
	
 
	
(6,327
	
)
	
 
	
(3,675
	
)
	
 
	
16,733
	
 
	
 
	
46,865
	
 
	
 
	
83,606
	
 
	
 
	
117,299
	
 
	
 
	
149,025
	
 
	
 
	
183,894
	
 
	
 
	
205,338
	
 
	
 
	
206,565
	
 
	
 
	
200,201
	
 
	
 
	
186,144
	
 
	
 
	
164,094
	
 
	
 
	
137,928
	
 
	
 
	
109,532
	
 
	
 
	
86,738
	
 

	
INTEREST MAINTENANCE RESERVE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
POLICIES IN FORCE (UNSCALED)
	
 
	
—
	
 
	
 
	
50,555
	
 
	
 
	
85,880
	
 
	
 
	
111,334
	
 
	
 
	
132,418
	
 
	
 
	
150,595
	
 
	
 
	
164,679
	
 
	
 
	
179,301
	
 
	
 
	
176,873
	
 
	
 
	
176,273
	
 
	
 
	
176,013
	
 
	
 
	
153,373
	
 
	
 
	
134,763
	
 
	
 
	
119,044
	
 
	
 
	
104,718
	
 
	
 
	
91,641
	
 
	
 
	
78,049
	
 

	
INSURANCE IN FORCE (NET)
	
 
	
—
	
 
	
4,092,767
	
 
	
 
	
8,757,255
	
 
	
 
	
12,662,947
	
 
	
 
	
15,939,132
	
 
	
 
	
19,046,285
	
 
	
 
	
19,584,856
	
 
	
 
	
19,850,947
	
 
	
 
	
19,375,491
	
 
	
 
	
19,008,416
	
 
	
18,651,255
	
 
	
16,521,621
	
 
	
14,251,365
	
 
	
12,224,280
	
 
	
10,398,649
	
 
	
8,663,416
	
 
	
 
	
7,517,724
	
 

	
CASH VALUE IN FORCE
	
 
	
—
	
 
	
 
	
(1,876
	
)
	
 
	
(2,601
	
)
	
 
	
(831
	
)
	
 
	
1,176
	
 
	
 
	
3,011
	
 
	
 
	
3,786
	
 
	
 
	
3,993
	
 
	
 
	
3,116
	
 
	
 
	
1,223
	
 
	
 
	
(606
	
)
	
 
	
(1,022
	
)
	
 
	
(1,298
	
)
	
 
	
(1,601
	
)
	
 
	
(1,857
	
)
	
 
	
(2,085
	
)
	
 
	
(2,220
	
)

	
ECONOMIC RESERVE (Canada=GAAP)
	
 
	
—
	
 
	
 
	
11,759
	
 
	
 
	
30,369
	
 
	
 
	
50,499
	
 
	
 
	
72,220
	
 
	
 
	
98,188
	
 
	
 
	
128,631
	
 
	
 
	
156,486
	
 
	
 
	
171,053
	
 
	
 
	
174,534
	
 
	
 
	
166,478
	
 
	
 
	
160,682
	
 
	
 
	
152,311
	
 
	
 
	
140,034
	
 
	
 
	
125,185
	
 
	
 
	
109,549
	
 
	
 
	
97,348
	
 

	
EXCESS RESERVE (STAT LESS ECON)
	
 
	
—
	
 
	
 
	
174,494
	
 
	
 
	
149,209
	
 
	
 
	
132,871
	
 
	
 
	
127,834
	
 
	
 
	
127,750
	
 
	
 
	
121,912
	
 
	
 
	
118,416
	
 
	
 
	
132,168
	
 
	
 
	
142,974
	
 
	
 
	
144,654
	
 
	
 
	
140,705
	
 
	
 
	
134,744
	
 
	
 
	
123,197
	
 
	
 
	
108,927
	
 
	
 
	
92,387
	
 
	
 
	
78,331
	
 

	
EXCESS RESERVE (STAT less ECON Floored al Zero)
	
 
	
—
	
 
	
 
	
174,494
	
 
	
 
	
149,209
	
 
	
 
	
132,871
	
 
	
 
	
127,834
	
 
	
 
	
127,750
	
 
	
 
	
121,912
	
 
	
 
	
118,416
	
 
	
 
	
132,168
	
 
	
 
	
142,974
	
 
	
 
	
144,654
	
 
	
 
	
140,705
	
 
	
 
	
134,744
	
 
	
 
	
123,197
	
 
	
 
	
108,927
	
 
	
 
	
92,387
	
 
	
 
	
78,331
	
 

	
GROSS DEFERRED PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
NET DEFERRED PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
PV AT 9.00% PROFITS RELEASED
	
 
	
—
	
 
	
 
	
(188,072
	
)
	
 
	
(184,858
	
)
	
 
	
(180,567
	
)
	
 
	
(181,074
	
)
	
 
	
(184,909
	
)
	
 
	
(189,622
	
)
	
 
	
(194,877
	
)
	
 
	
(196,844
	
) 
	
 
	
(197,518
	
)
	
 
	
(195,627
	
)
	
 
	
(192,244
	
)
	
 
	
(187,689
	
)
	
 
	
(180,831
	
)
	
 
	
(172,646
	
)
	
 
	
(163,665
	
)
	
 
	
(154,692
	
)

	
PV AT 11.00% PROFITS RELEASED
	
 
	
—
	
 
	
 
	
(184,683
	
)
	
 
	
(181,584
	
)
	
 
	
(177,521
	
)
	
 
	
(177,992
	
)
	
 
	
(181,494
	
)
	
 
	
(185,720
	
)
	
 
	
(190,347
	
)
	
 
	
(192,047
	
) 
	
 
	
(192,620
	
)
	
 
	
(191,043
	
)
	
 
	
(188,273
	
)
	
 
	
(184,611
	
)
	
 
	
(179,197
	
)
	
 
	
(172,851
	
)
	
 
	
(166,014
	
)
	
 
	
(159,306
	
)

	
PV AT 13.00% PROFITS RELEASED
	
 
	
—
	
 
	
 
	
(181,414
	
)
	
 
	
(178,424
	
)
	
 
	
(174,573
	
)
	
 
	
(175,012
	
)
	
 
	
(178,215
	
)
	
 
	
(182,011
	
)
	
 
	
(186,094
	
)
	
 
	
(187,568
	
) 
	
 
	
(188,056
	
)
	
 
	
(186,737
	
)
	
 
	
(184,461
	
)
	
 
	
(181,505
	
)
	
 
	
(177,213
	
)
	
 
	
(172,271
	
)
	
 
	
(167,040
	
)
	
 
	
(162,000
	
)

	
PV AT 9.00% BOOK PROFITS
	
 
	
9.0
	
%
	
 
	
(194,207
	
)
	
 
	
(193,489
	
)
	
 
	
(193,796
	
)
	
 
	
(199,706
	
)
	
 
	
(209,406
	
)
	
 
	
(219,575
	
)
	
 
	
(229,829
	
)
	
 
	
(234,625
	
) 
	
 
	
(237,437
	
)
	
 
	
(236,256
	
)
	
 
	
(231,757
	
)
	
 
	
(224,802
	
)
	
 
	
(214,564
	
)
	
 
	
(202,446
	
)
	
 
	
(189,189
	
)
	
 
	
(175,854
	
)

	
PV AT 11.00% BOOK PROFITS
	
 
	
11.0
	
%
	
 
	
(190,707
	
)
	
 
	
(190,015
	
)
	
 
	
(190,306
	
)
	
 
	
(195,802
	
)
	
 
	
(204,659
	
)
	
 
	
(213,776
	
)
	
 
	
(222,805
	
)
	
 
	
(226,951
	
) 
	
 
	
(229,339
	
)
	
 
	
(228,355
	
)
	
 
	
(224,672
	
)
	
 
	
(219,080
	
)
	
 
	
(210,997
	
)
	
 
	
(201,602
	
)
	
 
	
(191,510
	
)
	
 
	
(181,541
	
)

	
PV AT 13.00% BOOK PROFITS
	
 
	
13.0
	
%
	
 
	
(187,332
	
)
	
 
	
(186,664
	
)
	
 
	
(186,940
	
)
	
 
	
(192,057
	
)
	
 
	
(200,157
	
)
	
 
	
(208,348
	
)
	
 
	
(216,316
	
)
	
 
	
(219,911
	
) 
	
 
	
(221,944
	
)
	
 
	
(221,120
	
)
	
 
	
(218,094
	
)
	
 
	
(213,581
	
)
	
 
	
(207,172
	
)
	
 
	
(199,856
	
)
	
 
	
(192,135
	
)
	
 
	
(184,644
	
)

	
PV AT 9.00% FEDERAL INCOME TAX
	
 
	
9.0
	
%
	
 
	
(6.135
	
)
	
 
	
(8,631
	
)
	
 
	
(13,229
	
)
	
 
	
(18,632
	
)
	
 
	
(24,497
	
)
	
 
	
(29,953
	
)
	
 
	
(34,952
	
)
	
 
	
(37,781
	
) 
	
 
	
(39,919
	
)
	
 
	
(40,630
	
)
	
 
	
(39,514
	
)
	
 
	
(37,113
	
)
	
 
	
(33,733
	
)
	
 
	
(29,801
	
)
	
 
	
(25,524
	
)
	
 
	
(21,162
	
)

	
PV AT 11.00% FEDERAL INCOME TAX
	
 
	
11.0
	
%
	
 
	
(6,024
	
)
	
 
	
(8,431
	
)
	
 
	
(12,786
	
)
	
 
	
(17,809
	
)
	
 
	
(23,164
	
)
	
 
	
(28,056
	
)
	
 
	
(32,458
	
)
	
 
	
(34,904
	
) 
	
 
	
(36,719
	
)
	
 
	
(37,312
	
)
	
 
	
(36,398
	
)
	
 
	
(34,469
	
)
	
 
	
(31,800
	
)
	
 
	
(28,751
	
)
	
 
	
(25,495
	
)
	
 
	
(22,234
	
)

	
PV AT 13.00% FEDERAL INCOME TAX
	
 
	
13.0
	
%
	
 
	
(5,918
	
)
	
 
	
(8,240
	
)
	
 
	
(12,367
	
)
	
 
	
(17,045
	
)
	
 
	
(21,942
	
)
	
 
	
(26,337
	
)
	
 
	
(30,222
	
)
	
 
	
(32,342
	
) 
	
 
	
(33,888
	
)
	
 
	
(34,384
	
)
	
 
	
(33,633
	
)
	
 
	
(32,076
	
)
	
 
	
(29,959
	
)
	
 
	
(27,585
	
)
	
 
	
(25,094
	
)
	
 
	
(22,644
	
)

	
Tax Reserve before unamort DAC
	
 
	
—
	
 
	
 
	
(4,854
	
)
	
 
	
2,603
	
 
	
 
	
29,759
	
 
	
 
	
68,245
	
 
	
 
	
114,507
	
 
	
 
	
158,167
	
 
	
 
	
200,339
	
 
	
 
	
245,287
	
 
	
 
	
275,043
	
 
	
 
	
283,038
	
 
	
 
	
281,534
	
 
	
 
	
270,183
	
 
	
 
	
249,224
	
 
	
 
	
222,865
	
 
	
 
	
193,366
	
 
	
 
	
169,170
	
 

	
GAAP Benefit Reserve
	
 
	
—
	
 
	
 
	
(952
	
)
	
 
	
7,619
	
 
	
 
	
19,527
	
 
	
 
	
33,066
	
 
	
 
	
45,784
	
 
	
 
	
51,505
	
 
	
 
	
52,668
	
 
	
 
	
46,721
	
 
	
 
	
32,105
	
 
	
 
	
5,359
	
 
	
 
	
(28,237
	
)
	
 
	
(61,220
	
)
	
 
	
(95,542
	
)
	
 
	
(130,152
	
)
	
 
	
(166,247
	
)
	
 
	
(200,378
	
)

	
GAAP Expense Reserve
	
 
	
—
	
 
	
 
	
24,217
	
 
	
 
	
49,107
	
 
	
 
	
68,927
	
 
	
 
	
87,150
	
 
	
 
	
104,613
	
 
	
 
	
121,093
	
 
	
 
	
137,654
	
 
	
 
	
156,131
	
 
	
 
	
172,846
	
 
	
 
	
186,454
	
 
	
 
	
193,053
	
 
	
 
	
202,279
	
 
	
 
	
212,700
	
 
	
 
	
221,647
	
 
	
 
	
229,898
	
 
	
 
	
237,285
	
 

	
Primerica New Conversions - Net - Cost of Cap Calc
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Capital (Based on 300% RBC (i=5.70%))
	
 
	
—
	
 
	
 
	
12,470
	
 
	
 
	
20,922
	
 
	
 
	
28,052
	
 
	
 
	
34,721
	
 
	
 
	
41,327
	
 
	
 
	
44,590
	
 
	
 
	
47,444
	
 
	
 
	
48,533
	
 
	
 
	
48,721
	
 
	
 
	
48,442
	
 
	
 
	
45,272
	
 
	
 
	
41,561
	
 
	
 
	
37,824
	
 
	
 
	
34,167
	
 
	
 
	
30,557
	
 
	
 
	
27,886
	
 

	
Capital: After-Tax int less change (i=5.70%)
	
 
	
 
	
 
	
 
	
(12,470
	
)
	
 
	
(7,990
	
)
	
 
	
(6,355
	
)
	
 
	
(5,629
	
)
	
 
	
(5,320
	
)
	
 
	
(1,732
	
)
	
 
	
(1,201
	
)
	
 
	
669
	
 
	
 
	
1,610
	
 
	
 
	
2,084
	
 
	
 
	
4,965
	
 
	
 
	
5,389
	
 
	
 
	
5,277
	
 
	
 
	
5,058
	
 
	
 
	
4,876
	
 
	
 
	
3,804
	
 

	
PRE-TAX BOOK PROFIT
	
 
	
 
	
 
	
 
	
(211,685
	
)
	
 
	
853
	
 
	
 
	
(398
	
)
	
 
	
(8,343
	
)
	
 
	
(14,924
	
)
	
 
	
(17,054
	
)
	
 
	
(18,746
	
)
	
 
	
(9,555
	
) 
	
 
	
(6,109
	
)
	
 
	
2,796
	
 
	
 
	
11,609
	
 
	
 
	
19,563
	
 
	
 
	
31,388
	
 
	
 
	
40,494
	
 
	
 
	
48,291
	
 
	
 
	
52,943
	
 

	
FEDERAL INCOME TAX
	
 
	
 
	
 
	
 
	
6,687
	
 
	
 
	
2,966
	
 
	
 
	
5,955
	
 
	
 
	
7,627
	
 
	
 
	
9,023
	
 
	
 
	
9,150
	
 
	
 
	
9,139
	
 
	
 
	
5,637
	
 
	
 
	
4,643
	
 
	
 
	
1,683
	
 
	
 
	
(2,880
	
)
	
 
	
(6,751
	
)
	
 
	
(10,365
	
)
	
 
	
(13,140
	
)
	
 
	
(15,578
	
)
	
 
	
(17,318
	
)

	
Profit After-Tax, After Cost of Capital
	
 
	
 
	
 
	
 
	
(217,469
	
)
	
 
	
(4,171
	
)
	
 
	
(798
	
)
	
 
	
(6,345
	
)
	
 
	
(11,221
	
)
	
 
	
(9,636
	
)
	
 
	
(10,808
	
)
	
 
	
(3,249
	
) 
	
 
	
145
	
 
	
 
	
6,562
	
 
	
 
	
13,693
	
 
	
 
	
18,201
	
 
	
 
	
26,300
	
 
	
 
	
32,412
	
 
	
 
	
37,588
	
 
	
 
	
39,429
	
 

	
Present Values
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
9.00
	
%
	
 
	
11.00
	
%
	
 
	
13.00
	
%
	
 
	
15.00
	
%
	
 
	
20.00
	
%
	
 
	
16.00
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV PRE-TAX BOOK PROFIT
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
(56,631
	
)
	
 
	
(102,328
	
)
	
 
	
(131,242
	
)
	
 
	
(149,419
	
)
	
 
	
(169,309
	
)
	
 
	
(155,718
	
)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV FEDERAL INCOME TAX
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
(17,749
	
)
	
 
	
(3,679
	
)
	
 
	
5,141
	
 
	
 
	
10,625
	
 
	
 
	
16,518
	
 
	
 
	
12,507
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV Capital: After-Tax int less change (i=5.70%) less Init Cap
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
(15,876
	
)
	
 
	
(18,339
	
)
	
 
	
(19,843
	
)
	
 
	
(20,705
	
)
	
 
	
(21,245
	
)
	
 
	
(20,962
	
)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV After-Tax, After Cost of Capital
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
(90,256
	
)
	
 
	
(124,345
	
)
	
 
	
(145,944
	
)
	
 
	
(159,499
	
)
	
 
	
(174,036
	
)
	
 
	
(164,173
	
)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

C-5

Milliman

 

 

	
017CIG01\15\0906
	
Puck(Rev) @06/30/09 - Sens: 7-Year Recapture and PLIC Inforce External Res Financing@28.9% (Preliminary)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
10/21/09
	
 
	
 
	
 
	
 

	
From PUCK0906B.XLS
	
Line of Business Projection
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
03:55 PM
	
 
	
 
	
 
	
 

	
Existing Business at 06/30/2009 (000's)
	
2026
	
 
	
2027
	
 
	
2028
	
 
	
2029
	
 
	
2030
	
 
	
2031
	
 
	
2032
	
 
	
2033
	
 
	
2034
	
 
	
2035
	
 
	
2036
	
 
	
2037
	
 
	
2038
	
 
	
2039
	
 

	
Primerica New Conversions - Net
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
GROSS PREMIUMS
	
 
	
199,869
	
 
	
 
	
194,670
	
 
	
 
	
189,597
	
 
	
 
	
185,418
	
 
	
 
	
176,670
	
 
	
 
	
166,904
	
 
	
 
	
156,135
	
 
	
 
	
145,327
	
 
	
 
	
135,475
	
 
	
 
	
125,433
	
 
	
 
	
115,250
	
 
	
 
	
105,180
	
 
	
 
	
95,349
	
 
	
 
	
86,026
	
 

	
REINSURANCE PREMIUMS (NET OF ALLOWANCES)
	
 
	
(71,998
	
)
	
 
	
(70,427
	
)
	
 
	
(68,947
	
)
	
 
	
(67,362
	
) 
	
 
	
(62,196
	
) 
	
 
	
(57,052
	
)
	
 
	
(53,022
	
)
	
 
	
(49,107
	
)
	
 
	
(45,456
	
) 
	
 
	
(40,441
	
)
	
 
	
(35,320
	
)
	
 
	
(31,950
	
)
	
 
	
(28,807
	
)
	
 
	
(25,926
	
)

	
GROSS INVESTMENT INCOME PLUS FEE INCOME
	
 
	
10,835
	
 
	
 
	
9,725
	
 
	
 
	
8,437
	
 
	
 
	
7,180
	
 
	
 
	
6,056
	
 
	
 
	
5,084
	
 
	
 
	
4,235
	
 
	
 
	
3,441
	
 
	
 
	
2,760
	
 
	
 
	
2,254
	
 
	
 
	
1,926
	
 
	
 
	
1,696
	
 
	
 
	
1,517
	
 
	
 
	
1,379
	
 

	
ACCRUAL OF DISCOUNT
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
AMORTIZATION OF IMR
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INVESTMENT EXPENSE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INCOME LOST ON DEFAULTS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL INCOME
	
 
	
138,706
	
 
	
 
	
133,968
	
 
	
 
	
129,086
	
 
	
 
	
125,235
	
 
	
 
	
120,530
	
 
	
 
	
114,936
	
 
	
 
	
107,348
	
 
	
 
	
99,662
	
 
	
 
	
92,779
	
 
	
 
	
87,246
	
 
	
 
	
81,856
	
 
	
 
	
74,926
	
 
	
 
	
68,059
	
 
	
 
	
61,479
	
 

	
NET SURRENDERS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
HEALTH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
DIRECT DEATH BENEFITS
	
 
	
160,579
	
 
	
 
	
150,030
	
 
	
 
	
143,216
	
 
	
 
	
135,327
	
 
	
 
	
125,357
	
 
	
 
	
114,311
	
 
	
 
	
104,158
	
 
	
 
	
94,505
	
 
	
 
	
85,118
	
 
	
 
	
76,207
	
 
	
 
	
67,966
	
 
	
 
	
60,398
	
 
	
 
	
53,465
	
 
	
 
	
46,853
	
 

	
REINSURANCE DEATH BENEFITS
	
 
	
(71,596
	
)
	
 
	
(65,723
	
)
	
 
	
(62,824
	
)
	
 
	
(59,535
	
) 
	
 
	
(55,053
	
) 
	
 
	
(50,113
	
)
	
 
	
(45,898
	
)
	
 
	
(42,189
	
)
	
 
	
(38,694
	
) 
	
 
	
(35,059
	
)
	
 
	
(31,245
	
)
	
 
	
(27,753
	
)
	
 
	
(24,728
	
)
	
 
	
(21,817
	
)

	
ACQUISITION EXPENSES
	
 
	
77
	
 
	
 
	
155
	
 
	
 
	
155
	
 
	
 
	
132
	
 
	
 
	
14
	
 
	
 
	
6
	
 
	
 
	
6
	
 
	
 
	
4
	
 
	
 
	
20
	
 
	
 
	
28
	
 
	
 
	
21
	
 
	
 
	
14
	
 
	
 
	
8
	
 
	
 
	
2
	
 

	
OTHER EXPENSES
	
 
	
8,852
	
 
	
 
	
8,207
	
 
	
 
	
7,730
	
 
	
 
	
7,258
	
 
	
 
	
6,652
	
 
	
 
	
6,019
	
 
	
 
	
5,435
	
 
	
 
	
4,892
	
 
	
 
	
4,395
	
 
	
 
	
3,942
	
 
	
 
	
3,524
	
 
	
 
	
3,136
	
 
	
 
	
2,781
	
 
	
 
	
2,449
	
 

	
NET COMMISSIONS
	
 
	
1,145
	
 
	
 
	
2,284
	
 
	
 
	
2,327
	
 
	
 
	
1,897
	
 
	
 
	
393
	
 
	
 
	
94
	
 
	
 
	
83
	
 
	
 
	
55
	
 
	
 
	
285
	
 
	
 
	
430
	
 
	
 
	
338
	
 
	
 
	
229
	
 
	
 
	
130
	
 
	
 
	
36
	
 

	
COST OF FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INCREASE IN LOADING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INCREASE IN RESERVES
	
 
	
(19,707
	
)
	
 
	
(22,982
	
)
	
 
	
(23,515
	
)
	
 
	
(21,793
	
) 
	
 
	
(18,253
	
) 
	
 
	
(14,786
	
)
	
 
	
(13,753
	
)
	
 
	
(11,909
	
)
	
 
	
(9,156
	
) 
	
 
	
(5,693
	
)
	
 
	
(2,989
	
)
	
 
	
(1,980
	
)
	
 
	
(1,253
	
)
	
 
	
(478
	
)

	
INCR IN RESERVE FINANCING LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL DISBURSEMENTS
	
 
	
79,349
	
 
	
 
	
71,970
	
 
	
 
	
67,089
	
 
	
 
	
63,284
	
 
	
 
	
59,110
	
 
	
 
	
55,530
	
 
	
 
	
50,032
	
 
	
45,357
	
 
	
 
	
41,969
	
 
	
 
	
39,855
	
 
	
 
	
37,615
	
 
	
 
	
34,043
	
 
	
 
	
30,402
	
 
	
 
	
27,045
	
 

	
STATUTORY GAIN
	
 
	
59,357
	
 
	
 
	
61,998
	
 
	
 
	
61,998
	
 
	
 
	
61,951
	
 
	
 
	
61,420
	
 
	
 
	
59,406
	
 
	
 
	
57,317
	
 
	
 
	
54,305
	
 
	
 
	
50,811
	
 
	
 
	
47,391
	
 
	
 
	
44,241
	
 
	
 
	
40,882
	
 
	
 
	
37,656
	
 
	
 
	
34,435
	
 

	
CAPITAL GAINS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
GAIN ON CALLS AND ROLLOVER
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS DEFAULT LOSSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS IMR CAPITALIZATION
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
BOOK PROFIT
	
 
	
59,357
	
 
	
 
	
61,998
	
 
	
 
	
61,998
	
 
	
 
	
61,951
	
 
	
 
	
61,420
	
 
	
 
	
59,406
	
 
	
 
	
57,317
	
 
	
 
	
54,305
	
 
	
 
	
50,811
	
 
	
 
	
47,391
	
 
	
 
	
44,241
	
 
	
 
	
40,882
	
 
	
 
	
37,656
	
 
	
 
	
34,435
	
 

	
INCREASE IN SURPLUS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
FEDERAL INCOME TAX
	
 
	
19,733
	
 
	
 
	
20,489
	
 
	
 
	
20,446
	
 
	
 
	
20,423
	
 
	
 
	
20,444
	
 
	
 
	
19,883
	
 
	
 
	
19,030
	
 
	
 
	
17,873
	
 
	
 
	
16,581
	
 
	
 
	
15,358
	
 
	
 
	
14,244
	
 
	
 
	
13,033
	
 
	
 
	
11,886
	
 
	
 
	
10,759
	
 

	
PROFITS RELEASED
	
 
	
39,624
	
 
	
 
	
41,509
	
 
	
 
	
41,552
	
 
	
 
	
41,528
	
 
	
 
	
40,976
	
 
	
 
	
39,523
	
 
	
 
	
38,286
	
 
	
 
	
36,432
	
 
	
 
	
34,229
	
 
	
 
	
32,033
	
 
	
 
	
29,998
	
 
	
 
	
27,850
	
 
	
 
	
25,771
	
 
	
 
	
23,675
	
 

	
STATUTORY RESERVE (GA) (Canada=GAAP)
	
 
	
155,972
	
 
	
 
	
132,990
	
 
	
 
	
109,475
	
 
	
 
	
87,682
	
 
	
 
	
69,429
	
 
	
 
	
54,643
	
 
	
 
	
40,890
	
 
	
 
	
28,980
	
 
	
 
	
19,825
	
 
	
 
	
14,132
	
 
	
 
	
11,142
	
 
	
 
	
9,163
	
 
	
 
	
7,910
	
 
	
 
	
7,432
	
 

	
RESERVE FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL LIABILITY (GA)
	
 
	
155,972
	
 
	
 
	
132,990
	
 
	
 
	
109,475
	
 
	
 
	
87,682
	
 
	
 
	
69,429
	
 
	
 
	
54,643
	
 
	
 
	
40,890
	
 
	
 
	
28,980
	
 
	
 
	
19,825
	
 
	
 
	
14,132
	
 
	
 
	
11,142
	
 
	
 
	
9,163
	
 
	
 
	
7,910
	
 
	
 
	
7,432
	
 

	
SEPARATE ACCOUNT LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TAX RESERVE (GA)
	
 
	
70,008
	
 
	
 
	
50,483
	
 
	
 
	
30,549
	
 
	
 
	
12,357
	
 
	
 
	
(2,887
	
) 
	
 
	
(15,075
	
)
	
 
	
(25,883
	
)
	
 
	
(34,555
	
)
	
 
	
(40,275
	
) 
	
 
	
(42,457
	
)
	
 
	
(41,902
	
)
	
 
	
(40,235
	
)
	
 
	
(37,791
	
)
	
 
	
(34,574
	
)

	
INTEREST MAINTENANCE RESERVE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
POLICIES IN FORCE (UNSCALED)
	
 
	
65,149
	
 
	
 
	
58,041
	
 
	
 
	
51,180
	
 
	
 
	
44,515
	
 
	
 
	
37,291
	
 
	
 
	
31,065
	
 
	
 
	
26,046
	
 
	
 
	
21,602
	
 
	
 
	
17,740
	
 
	
 
	
14,714
	
 
	
 
	
12,047
	
 
	
 
	
9,971
	
 
	
 
	
8,132
	
 
	
 
	
6,540
	
 

	
INSURANCE IN FORCE (NET)
	
 
	
6,481,856
	
 
	
 
	
5,820,179
	
 
	
5,174,906
	
 
	
 
	
4,530,794
	
 
	
 
	
3,872,361
	
 
	
 
	
3,230,937
	
 
	
 
	
2,674,506
	
 
	
 
	
2,171,183
	
 
	
 
	
1,708,530
	
 
	
 
	
1,406,311
	
 
	
 
	
1,153,198
	
 
	
 
	
953,209
	
 
	
 
	
778,727
	
 
	
 
	
628,833
	
 

	
CASH VALUE IN FORCE
	
 
	
(2,152
	
)
	
 
	
(2,143
	
)
	
 
	
(2,270
	
)
	
 
	
(2,348
	
) 
	
 
	
(2,232
	
) 
	
 
	
(1,975
	
)
	
 
	
(1,799
	
)
	
 
	
(1,655
	
)
	
 
	
(1,466
	
) 
	
 
	
(1,238
	
)
	
 
	
(1,048
	
)
	
 
	
(907
	
)
	
 
	
(793
	
)
	
 
	
(681
	
)

	
ECONOMIC RESERVE (Canada=GAAP)
	
 
	
90,499
	
 
	
 
	
82,648
	
 
	
 
	
72,403
	
 
	
 
	
60,711
	
 
	
 
	
49,496
	
 
	
 
	
40,189
	
 
	
 
	
31,321
	
 
	
 
	
23,136
	
 
	
 
	
16,642
	
 
	
 
	
12,095
	
 
	
 
	
9,439
	
 
	
 
	
7,472
	
 
	
 
	
6,153
	
 
	
 
	
5,589
	
 

	
EXCESS RESERVE (STAT LESS ECON)
	
 
	
65,473
	
 
	
 
	
50,343
	
 
	
 
	
37,072
	
 
	
 
	
26,971
	
 
	
 
	
19,933
	
 
	
 
	
14,453
	
 
	
 
	
9,569
	
 
	
 
	
5,844
	
 
	
 
	
3,182
	
 
	
 
	
2,037
	
 
	
 
	
1,704
	
 
	
 
	
1,690
	
 
	
 
	
1,757
	
 
	
 
	
1,843
	
 

	
EXCESS RESERVE (STAT less ECON Floored at Zero)
	
 
	
65,473
	
 
	
 
	
50,343
	
 
	
 
	
37,072
	
 
	
 
	
26,971
	
 
	
 
	
19,933
	
 
	
 
	
14,453
	
 
	
 
	
9,569
	
 
	
 
	
5,844
	
 
	
 
	
3,182
	
 
	
 
	
2,037
	
 
	
 
	
1,704
	
 
	
 
	
1,690
	
 
	
 
	
1,757
	
 
	
 
	
1,843
	
 

	
GROSS DEFERRED PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
NET DEFERRED PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
PV AT 9.00% PROFITS RELEASED
	
 
	
(145,536
	
)
	
 
	
(136,736
	
)
	
 
	
(128,655
	
)
	
 
	
(121,245
	
) 
	
 
	
(114,537
	
) 
	
 
	
(108,602
	
)
	
 
	
(103,326
	
)
	
 
	
(98,721
	
)
	
 
	
(94,752
	
) 
	
 
	
(91,344
	
)
	
 
	
(88,416
	
)
	
 
	
(85,922
	
)
	
 
	
(83,805
	
)
	
 
	
(82,020
	
)

	
PV AT 11.00% PROFITS RELEASED
	
 
	
(152,585
	
)
	
 
	
(146,241
	
)
	
 
	
(140,521
	
)
	
 
	
(135,370
	
) 
	
 
	
(130,791
	
) 
	
 
	
(126,812
	
)
	
 
	
(123,340
	
)
	
 
	
(120,363
	
)
	
 
	
(117,844
	
) 
	
 
	
(115,719
	
)
	
 
	
(113,927
	
)
	
 
	
(112,428
	
)
	
 
	
(111,179
	
)
	
 
	
(110,145
	
)

	
PV AT 13.00% PROFITS RELEASED
	
 
	
(157,038
	
)
	
 
	
(152,438
	
)
	
 
	
(148,364
	
)
	
 
	
(144,760
	
) 
	
 
	
(141,613
	
) 
	
 
	
(138,927
	
)
	
 
	
(136,624
	
)
	
 
	
(134,685
	
)
	
 
	
(133,073
	
) 
	
 
	
(131,737
	
)
	
 
	
(130,631
	
)
	
 
	
(129,722
	
)
	
 
	
(128,977
	
)
	
 
	
(128,372
	
)

	
PV AT 9.00% BOOK PROFITS
	
 
	
(162,138
	
)
	
 
	
(148,995
	
)
	
 
	
(136,937
	
)
	
 
	
(125,883
	
) 
	
 
	
(115,829
	
) 
	
 
	
(106,907
	
)
	
 
	
(99,010
	
)
	
 
	
(92,145
	
)
	
 
	
(86,253
	
) 
	
 
	
(81,211
	
)
	
 
	
(76,893
	
)
	
 
	
(73,232
	
)
	
 
	
(70,138
	
)
	
 
	
(67,543
	
)

	
PV AT 11.00% BOOK PROFITS
	
 
	
(171,472
	
)
	
 
	
(161,997
	
)
	
 
	
(153,461
	
)
	
 
	
(145,777
	
) 
	
 
	
(138,914
	
) 
	
 
	
(132,934
	
)
	
 
	
(127,736
	
)
	
 
	
(123,299
	
)
	
 
	
(119,559
	
) 
	
 
	
(116,416
	
)
	
 
	
(113,773
	
)
	
 
	
(111,572
	
)
	
 
	
(109,747
	
)
	
 
	
(108,242
	
)

	
PV AT 13.00% BOOK PROFITS
	
 
	
(177,211
	
)
	
 
	
(170,341
	
)
	
 
	
(164,261
	
)
	
 
	
(158,885
	
) 
	
 
	
(154,168
	
) 
	
 
	
(150,130
	
)
	
 
	
(146,683
	
)
	
 
	
(143,793
	
)
	
 
	
(141,400
	
) 
	
 
	
(139,424
	
)
	
 
	
(137,792
	
)
	
 
	
(136,458
	
)
	
 
	
(135,370
	
)
	
 
	
(134,489
	
)

	
PV AT 9.00% FEDERAL INCOME TAX
	
 
	
(16,602
	
)
	
 
	
(12,258
	
)
	
 
	
(8,282
	
)
	
 
	
(4,638
	
) 
	
 
	
(1,291
	
) 
	
 
	
1,695
	
 
	
 
	
4,317
	
 
	
 
	
6,576
	
 
	
 
	
8,499
	
 
	
 
	
10,133
	
 
	
 
	
11,523
	
 
	
 
	
12,690
	
 
	
 
	
13,667
	
 
	
 
	
14,478
	
 

	
PV AT 11.00% FEDERAL INCOME TAX
	
 
	
(18,887
	
)
	
 
	
(15,756
	
)
	
 
	
(12,941
	
)
	
 
	
(10,408
	
) 
	
 
	
(8,123
	
) 
	
 
	
(6,122
	
)
	
 
	
(4,396
	
)
	
 
	
(2,935
	
)
	
 
	
(1,715
	
) 
	
 
	
(696
	
)
	
 
	
154
	
 
	
 
	
856
	
 
	
 
	
1,432
	
 
	
 
	
1,902
	
 

	
PV AT 13.00% FEDERAL INCOME TAX
	
 
	
(20,173
	
)
	
 
	
(17,903
	
)
	
 
	
(15,898
	
)
	
 
	
(14,125
	
) 
	
 
	
(12,555
	
) 
	
 
	
(11,204
	
)
	
 
	
(10,059
	
)
	
 
	
(9,108
	
)
	
 
	
(8,327
	
) 
	
 
	
(7,687
	
)
	
 
	
(7,161
	
)
	
 
	
(6,736
	
)
	
 
	
(6,393
	
)
	
 
	
(6,118
	
)

	
Tax Reserve before unamort DAC
	
 
	
150,971
	
 
	
 
	
129,462
	
 
	
 
	
107,388
	
 
	
 
	
87,008
	
 
	
 
	
69,419
	
 
	
 
	
54,634
	
 
	
 
	
40,882
	
 
	
 
	
28,975
	
 
	
 
	
19,820
	
 
	
 
	
14,129
	
 
	
 
	
11,140
	
 
	
 
	
9,161
	
 
	
 
	
7,908
	
 
	
 
	
7,431
	
 

	
GAAP Benefit Reserve
	
 
	
(232,925
	
)
	
 
	
(263,391
	
)
	
 
	
(288,624
	
)
	
 
	
(315,608
	
) 
	
 
	
(345,766
	
) 
	
 
	
(375,171
	
)
	
 
	
(401,172
	
)
	
 
	
(420,791
	
)
	
 
	
(435,319
	
) 
	
 
	
(437,904
	
)
	
 
	
(428,299
	
)
	
 
	
(405,121
	
)
	
 
	
(371,467
	
)
	
 
	
(338,904
	
)

	
GAAP Expense Reserve
	
 
	
243,504
	
 
	
 
	
251,121
	
 
	
 
	
249,090
	
 
	
 
	
236,846
	
 
	
 
	
221,960
	
 
	
 
	
206,401
	
 
	
 
	
191,349
	
 
	
 
	
175,742
	
 
	
 
	
166,426
	
 
	
 
	
159,662
	
 
	
 
	
150,329
	
 
	
 
	
139,355
	
 
	
 
	
125,405
	
 
	
 
	
110,440
	
 

	
Primerica New Conversions - Net - Cost of Cap Calc
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Capital (Based on 300% RBC (i=5.70%))
	
 
	
25,652
	
 
	
 
	
23,745
	
 
	
 
	
21,855
	
 
	
 
	
20,079
	
 
	
 
	
18,115
	
 
	
 
	
16,226
	
 
	
 
	
14,425
	
 
	
 
	
12,747
	
 
	
 
	
11,262
	
 
	
 
	
10,067
	
 
	
 
	
9,003
	
 
	
 
	
8,053
	
 
	
 
	
7,175
	
 
	
 
	
6,386
	
 

	
Capital: After-Tax int less change (i=5.70%)
	
 
	
3,267
	
 
	
 
	
2,857
	
 
	
 
	
2,770
	
 
	
 
	
2,586
	
 
	
 
	
2,708
	
 
	
 
	
2,560
	
 
	
 
	
2,402
	
 
	
 
	
2,213
	
 
	
 
	
1,956
	
 
	
 
	
1,612
	
 
	
 
	
1,437
	
 
	
 
	
1,284
	
 
	
 
	
1,177
	
 
	
 
	
1,055
	
 

	
PRE-TAX BOOK PROFIT
	
 
	
59,357
	
 
	
 
	
61,998
	
 
	
 
	
61,998
	
 
	
 
	
61,951
	
 
	
 
	
61,420
	
 
	
 
	
59,406
	
 
	
 
	
57,317
	
 
	
 
	
54,305
	
 
	
 
	
50,811
	
 
	
 
	
47,391
	
 
	
 
	
44,241
	
 
	
 
	
40,882
	
 
	
 
	
37,656
	
 
	
 
	
34,435
	
 

	
FEDERAL INCOME TAX
	
 
	
(19,733
	
)
	
 
	
(20,489
	
)
	
 
	
(20,446
	
)
	
 
	
(20,423
	
) 
	
 
	
(20,444
	
) 
	
 
	
(19,883
	
)
	
 
	
(19,030
	
)
	
 
	
(17,873
	
)
	
 
	
(16,581
	
) 
	
 
	
(15,358
	
)
	
 
	
(14,244
	
)
	
 
	
(13,033
	
)
	
 
	
(11,886
	
)
	
 
	
(10,759
	
)

	
Profit After-Tax, After Cost of Capital
	
 
	
42,891
	
 
	
 
	
44,366
	
 
	
 
	
44,322
	
 
	
 
	
44,114
	
 
	
 
	
43,684
	
 
	
 
	
42,084
	
 
	
 
	
40,688
	
 
	
 
	
38,645
	
 
	
 
	
36,186
	
 
	
 
	
33,646
	
 
	
 
	
31,434
	
 
	
 
	
29,134
	
 
	
 
	
26,947
	
 
	
 
	
24,730
	
 

	
Present Values
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV PRE-TAX BOOK PROFIT
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV FEDERAL INCOME TAX
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV Capital: After-Tax int less change (i=5.70%) less Init Cap
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 PV After-Tax, After Cost of Capital
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

 

 

C-6

Milliman

 

 

	
017CIG01\15\0906
	
 
	
Puck(Rev) @06/30/09 - Sens: 7-Year Recapture and PLIC Inforce External ]
	
 
	
 
	
10/21/09

	
From PUCK0906B.XLS
	
 
	
Line of Business Projection - Present Value of Components of Profi
	
 
	
 
	
03:55 PM

	
 
	
 
	
As of June 30, 2009
	
 
	
 
	
 

	
Existing Business at 06/30/2009 (000's)
	
  
	
9.00%
	
 
	
 
	
11.00%
	
 
	
 
	
13.00%
	
 
	
 
	
15.00%
	
 
	
 
	
 

	
Primerica New Conversions - Net
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
GROSS PREMIUMS
	
 
	
 
	
1,688,876
	
 
	
 
	
 
	
1,390,073
	
 
	
 
	
 
	
1,163,649
	
 
	
 
	
 
	
988,411
	
 
	
 
	
 

	
REINSURANCE PREMIUMS (NET OF

   ALLOWANCE:
	
 
	
 
	
(583,850
	
)
	
 
	
 
	
(477,248
	
)
	
 
	
 
	
(396,287
	
)
	
 
	
 
	
(333,676
	
)
	
 
	
 

	
GROSS INVESTMENT INCOME PLUS FEE

   INCOME
	
 
	
 
	
109,855
	
 
	
 
	
 
	
92,962
	
 
	
 
	
 
	
79,620
	
 
	
 
	
 
	
68,925
	
 
	
 
	
 

	
ACCRUAL OF DISCOUNT
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
AMORTIZATION OF IMR
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
LESS INVESTMENT EXPENSE
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
LESS INCOME LOST ON DEFAULTS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
TOTAL INCOME
	
 
	
 
	
1,214,880
	
 
	
 
	
 
	
1,005,787
	
 
	
 
	
 
	
846,982
	
 
	
 
	
 
	
723,660
	
 
	
 
	
 

	
NET SURRENDERS
	
 
	
 
	
24
	
 
	
 
	
 
	
11
	
 
	
 
	
 
	
6
	
 
	
 
	
 
	
3
	
 
	
 
	
 

	
HEALTH BENEFITS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
DIRECT DEATH BENEFITS
	
 
	
 
	
1,394,167
	
 
	
 
	
 
	
1,151,854
	
 
	
 
	
 
	
965,746
	
 
	
 
	
 
	
820,192
	
 
	
 
	
 

	
REINSURANCE DEATH BENEFITS
	
 
	
 
	
(536,481
	
)
	
 
	
 
	
(438,199
	
)
	
 
	
 
	
(363,406
	
)
	
 
	
 
	
(305,469
	
)
	
 
	
 

	
ACQUISITION EXPENSES
	
 
	
 
	
12,217
	
 
	
 
	
 
	
11,361
	
 
	
 
	
 
	
10,611
	
 
	
 
	
 
	
9,948
	
 
	
 
	
 

	
OTHER EXPENSES
	
 
	
 
	
92,125
	
 
	
 
	
 
	
77,346
	
 
	
 
	
 
	
65,826
	
 
	
 
	
 
	
56,688
	
 
	
 
	
 

	
NET COMMISSIONS
	
 
	
 
	
136,878
	
 
	
 
	
 
	
125,842
	
 
	
 
	
 
	
116,257
	
 
	
 
	
 
	
107,868
	
 
	
 
	
 

	
COST OF FINANCING
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
INCREASE IN LOADING
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
INCREASE IN RESERVES
	
 
	
 
	
172,581
	
 
	
 
	
 
	
179,899
	
 
	
 
	
 
	
183,186
	
 
	
 
	
 
	
183,849
	
 
	
 
	
 

	
INCR IN RESERVE FINANCING LIABILITY
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
TOTAL DISBURSEMENTS
	
 
	
 
	
1,271,511
	
 
	
 
	
 
	
1,108,115
	
 
	
 
	
 
	
978,224
	
 
	
 
	
 
	
873,079
	
 
	
 
	
 

	
STATUTORY GAIN
	
 
	
 
	
(56,631
	
)
	
 
	
 
	
(102,328
	
)
	
 
	
 
	
(131,242
	
)
	
 
	
 
	
(149,419
	
)
	
 
	
 

	
CAPITAL GAINS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
GAIN ON CALLS AND ROLLOVER
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
LESS DEFAULT LOSSES
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
LESS IMR CAPITALIZATION
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
BOOK PROFIT
	
 
	
 
	
(56,631
	
)
	
 
	
 
	
(102,328
	
)
	
 
	
 
	
(131,242
	
)
	
 
	
 
	
(149,419
	
)
	
 
	
 

	
INCREASE IN SURPLUS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
FEDERAL INCOME TAX
	
 
	
 
	
17,749
	
 
	
 
	
 
	
3,679
	
 
	
 
	
 
	
(5,141
	
)
	
 
	
 
	
(10,625
	
)
	
 
	
 

	
PROFITS RELEASED
	
 
	
 
	
(74,380
	
)
	
 
	
 
	
(106,007
	
)
	
 
	
 
	
(126,101
	
)
	
 
	
 
	
(138,795
	
)
	
 
	
 

 

 

 

C-7

Milliman

 

 

	
017CIG01\15\0906
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Puck(Rev) @06/30/09 - Sens: 7-Year Recapture and PLIC Inforce External Res Financing@28.9% (Preliminary)
	
 
	
 
	
10/21/09
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
From PUCK0906B.XLS
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Line of Business Projection
	
 
	
 
	
03:55 PM
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Existing Business at 06/30/2009 (000ʼs)
	
 
	
2009
	
 
	
 
	
2010
	
 
	
 
	
2011
	
 
	
 
	
2012
	
 
	
 
	
2013
	
 
	
 
	
2014
	
 
	
 
	
2015
	
 
	
 
	
2016
	
 
	
 
	
2017
	
 
	
 
	
2018
	
 
	
 
	
2019
	
 
	
 
	
2020
	
 
	
2021
	
 
	
2022
	
 
	
2023
	
 
	
2024
	
 
	
2025

	
Miscellaneous Primerica
	
 
	
 
	
—
	
 
	
 
	
 
	
33,184
	
 
	
 
	
 
	
30,369
	
 
	
 
	
 
	
28,381
	
 
	
 
	
 
	
26,747
	
 
	
 
	
 
	
25,346
	
 
	
 
	
 
	
24,069
	
 
	
 
	
 
	
22,877
	
 
	
 
	
 
	
21,376
	
 
	
 
	
 
	
19,776
	
 
	
 
	
 
	
18,408
	
 
	
 
	
 
	
17,060
	
 
	
 
	
15,661
	
 
	
 
	
14,278
	
 
	
 
	
12,901
	
 
	
 
	
11,653
	
 
	
 
	
10,366

	
GROSS PREMIUMS
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
REINSURANCE PREMIUMS (NET OF ALLOWANCES)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
GROSS INVESTMENT INCOME PLUS FEE

   INCOME
	
 
	
 
	
—
	
 
	
 
	
 
	
38,281
	
 
	
 
	
 
	
36,315
	
 
	
 
	
 
	
35,111
	
 
	
 
	
 
	
34,205
	
 
	
 
	
 
	
33,394
	
 
	
 
	
 
	
32,620
	
 
	
 
	
 
	
31,835
	
 
	
 
	
 
	
30,839
	
 
	
 
	
 
	
29,473
	
 
	
 
	
 
	
27,924
	
 
	
 
	
 
	
26,369
	
 
	
 
	
24,710
	
 
	
 
	
22,922
	
 
	
 
	
21,049
	
 
	
 
	
19,053
	
 
	
 
	
16,982

	
ACCRUAL OF DISCOUNT
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
AMORTIZATION OF IMR
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
LESS INVESTMENT EXPENSE
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
LESS INCOME LOST ON DEFAULTS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
TOTAL INCOME
	
 
	
 
	
—
	
 
	
 
	
 
	
71,465
	
 
	
 
	
 
	
66,684
	
 
	
 
	
 
	
63,492
	
 
	
 
	
 
	
60,952
	
 
	
 
	
 
	
58,740
	
 
	
 
	
 
	
56,689
	
 
	
 
	
 
	
54,713
	
 
	
 
	
 
	
52,215
	
 
	
 
	
 
	
49,249
	
 
	
 
	
 
	
46,332
	
 
	
 
	
 
	
43,429
	
 
	
 
	
40,371
	
 
	
 
	
37,200
	
 
	
 
	
33,950
	
 
	
 
	
30,706
	
 
	
 
	
27,348

	
NET SURRENDERS
	
 
	
 
	
—
	
 
	
 
	
 
	
90,344
	
 
	
 
	
 
	
68,121
	
 
	
 
	
 
	
57,560
	
 
	
 
	
 
	
53,236
	
 
	
 
	
 
	
50,597
	
 
	
 
	
 
	
48,782
	
 
	
 
	
 
	
47,954
	
 
	
 
	
 
	
52,993
	
 
	
 
	
 
	
57,462
	
 
	
 
	
 
	
55,765
	
 
	
 
	
 
	
53,866
	
 
	
 
	
55,608
	
 
	
 
	
54,564
	
 
	
 
	
54,614
	
 
	
 
	
54,976
	
 
	
 
	
53,288

	
HEALTH BENEFITS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
DIRECT DEATH BENEFITS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
REINSURANCE DEATH BENEFITS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
ACQUISITION EXPENSES
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
OTHER EXPENSES
	
 
	
 
	
—
	
 
	
 
	
 
	
664
	
 
	
 
	
 
	
607
	
 
	
 
	
 
	
568
	
 
	
 
	
 
	
535
	
 
	
 
	
 
	
507
	
 
	
 
	
 
	
481
	
 
	
 
	
 
	
458
	
 
	
 
	
 
	
428
	
 
	
 
	
 
	
396
	
 
	
 
	
 
	
368
	
 
	
 
	
 
	
341
	
 
	
 
	
313
	
 
	
 
	
286
	
 
	
 
	
258
	
 
	
 
	
233
	
 
	
 
	
207

	
NET COMMISSIONS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
COST OF FINANCING
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
INCREASE IN LOADING
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
INCREASE IN RESERVES
	
 
	
 
	
—
	
 
	
 
	
 
	
(44,217
	
)
	
 
	
 
	
(25,419
	
)
	
 
	
 
	
(17,265
	
)
	
 
	
 
	
(14,851
	
)
	
 
	
 
	
(13,875
	
)
	
 
	
 
	
(13,593
	
)
	
 
	
 
	
(14,222
	
)
	
 
	
 
	
(20,951
	
)
	
 
	
 
	
(27,352
	
)
	
 
	
 
	
(27,567
	
)
	
 
	
 
	
(27,551
	
)
	
 
	
(31,213
	
)
	
 
	
(32,162
	
)
	
 
	
(34,220
	
)
	
 
	
(36,540
	
)
	
 
	
(36,881)

	
INCR IN RESERVE FINANCING LIABILITY
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
TOTAL DISBURSEMENTS
	
 
	
 
	
—
	
 
	
 
	
 
	
46,790
	
 
	
 
	
 
	
43,309
	
 
	
 
	
 
	
40,863
	
 
	
 
	
 
	
38,919
	
 
	
 
	
 
	
37,229
	
 
	
 
	
 
	
35,670
	
 
	
 
	
 
	
34,190
	
 
	
 
	
 
	
32,470
	
 
	
 
	
 
	
30,505
	
 
	
 
	
 
	
28,567
	
 
	
 
	
 
	
26,656
	
 
	
 
	
24,708
	
 
	
 
	
22,687
	
 
	
 
	
20,653
	
 
	
 
	
18,669
	
 
	
 
	
16,614

	
STATUTORY GAIN
	
 
	
 
	
—
	
 
	
 
	
 
	
24,675
	
 
	
 
	
 
	
23,374
	
 
	
 
	
 
	
22,630
	
 
	
 
	
 
	
22,032
	
 
	
 
	
 
	
21,511
	
 
	
 
	
 
	
21,019
	
 
	
 
	
 
	
20,523
	
 
	
 
	
 
	
19,746
	
 
	
 
	
 
	
18,744
	
 
	
 
	
 
	
17,765
	
 
	
 
	
 
	
16,774
	
 
	
 
	
15,663
	
 
	
 
	
14,512
	
 
	
 
	
13,298
	
 
	
 
	
12,037
	
 
	
 
	
10,734

	
CAPITAL GAINS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
GAIN ON CALLS AND ROLLOVER
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
LESS DEFAULT LOSSES
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
LESS IMR CAPITALIZATION
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
BOOK PROFIT
	
 
	
 
	
—
	
 
	
 
	
 
	
24,675
	
 
	
 
	
 
	
23,374
	
 
	
 
	
 
	
22,630
	
 
	
 
	
 
	
22,032
	
 
	
 
	
 
	
21,511
	
 
	
 
	
 
	
21,019
	
 
	
 
	
 
	
20,523
	
 
	
 
	
 
	
19,746
	
 
	
 
	
 
	
18,744
	
 
	
 
	
 
	
17,765
	
 
	
 
	
 
	
16,774
	
 
	
 
	
15,663
	
 
	
 
	
14,512
	
 
	
 
	
13,298
	
 
	
 
	
12,037
	
 
	
 
	
10,734

	
INCREASE IN SURPLUS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
FEDERAL INCOME TAX
	
 
	
 
	
—
	
 
	
 
	
 
	
9,486
	
 
	
 
	
 
	
8,869
	
 
	
 
	
 
	
8,476
	
 
	
 
	
 
	
8,148
	
 
	
 
	
 
	
7,858
	
 
	
 
	
 
	
7,585
	
 
	
 
	
 
	
7,316
	
 
	
 
	
 
	
6,944
	
 
	
 
	
 
	
6,494
	
 
	
 
	
 
	
6,063
	
 
	
 
	
 
	
5,677
	
 
	
 
	
5,292
	
 
	
 
	
4,891
	
 
	
 
	
4,466
	
 
	
 
	
4,029
	
 
	
 
	
3,575

	
PROFITS RELEASED
	
 
	
 
	
—
	
 
	
 
	
 
	
15,189
	
 
	
 
	
 
	
14,505
	
 
	
 
	
 
	
14,154
	
 
	
 
	
 
	
13,884
	
 
	
 
	
 
	
13,653
	
 
	
 
	
 
	
13,434
	
 
	
 
	
 
	
13,207
	
 
	
 
	
 
	
12,802
	
 
	
 
	
 
	
12,249
	
 
	
 
	
 
	
11,701
	
 
	
 
	
 
	
11,096
	
 
	
 
	
10,371
	
 
	
 
	
9,621
	
 
	
 
	
8,831
	
 
	
 
	
8,008
	
 
	
 
	
7,159

	
STATUTORY RESERVE (GA) (Canada=GAAP)
	
 
	
 
	
700,500
	
 
	
 
	
 
	
656,283
	
 
	
 
	
 
	
630,863
	
 
	
 
	
 
	
613,598
	
 
	
 
	
 
	
598,747
	
 
	
 
	
 
	
584,872
	
 
	
 
	
 
	
571,278
	
 
	
 
	
 
	
557,056
	
 
	
 
	
 
	
536,105
	
 
	
 
	
 
	
508,753
	
 
	
 
	
 
	
481,187
	
 
	
 
	
 
	
453,636
	
 
	
 
	
422,422
	
 
	
 
	
390,260
	
 
	
 
	
356,040
	
 
	
 
	
319,500
	
 
	
 
	
282,619

	
RESERVE FINANCING
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
TOTAL LIABILITY (GA)
	
 
	
 
	
700,500
	
 
	
 
	
 
	
656,283
	
 
	
 
	
 
	
630,863
	
 
	
 
	
 
	
613,598
	
 
	
 
	
 
	
598,747
	
 
	
 
	
 
	
584,872
	
 
	
 
	
 
	
571,278
	
 
	
 
	
 
	
557,056
	
 
	
 
	
 
	
536,105
	
 
	
 
	
 
	
508,753
	
 
	
 
	
 
	
481,187
	
 
	
 
	
 
	
453,636
	
 
	
 
	
422,422
	
 
	
 
	
390,260
	
 
	
 
	
356,040
	
 
	
 
	
319,500
	
 
	
 
	
282,619

	
SEPARATE ACCOUNT LIABILITY
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
TAX RESERVE (GA)
	
 
	
 
	
700,500
	
 
	
 
	
 
	
653,855
	
 
	
 
	
 
	
626,470
	
 
	
 
	
 
	
607,618
	
 
	
 
	
 
	
591,518
	
 
	
 
	
 
	
576,703
	
 
	
 
	
 
	
562,458
	
 
	
 
	
 
	
547,857
	
 
	
 
	
 
	
526,813
	
 
	
 
	
 
	
499,649
	
 
	
 
	
 
	
472,523
	
 
	
 
	
 
	
445,525
	
 
	
 
	
414,854
	
 
	
 
	
383,230
	
 
	
 
	
349,547
	
 
	
 
	
313,533
	
 
	
 
	
277,172

	
INTEREST MAINTENANCE RESERVE
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
-
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
POLICIES IN FORCE (UNSCALED)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
INSURANCE IN FORCE (NET)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
CASH VALUE IN FORCE
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
ECONOMIC RESERVE (Canada=GAAP)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
EXCESS RESERVE (STAT LESS ECON)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
EXCESS RESERVE (STAT less ECON Floored at Zero)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
GROSS DEFERRED PREMIUMS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
NET DEFERRED PREMIUMS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
PV AT 9.00% PROFITS RELEASED
	
 
	
 
	
—
	
 
	
 
	
 
	
13,935
	
 
	
 
	
 
	
26,144
	
 
	
 
	
 
	
37,073
	
 
	
 
	
 
	
46,909
	
 
	
 
	
 
	
55,782
	
 
	
 
	
 
	
63,793
	
 
	
 
	
 
	
71,017
	
 
	
 
	
 
	
77,442
	
 
	
 
	
 
	
83,082
	
 
	
 
	
 
	
88,025
	
 
	
 
	
 
	
92,325
	
 
	
 
	
96,013
	
 
	
 
	
99,151
	
 
	
 
	
101,794
	
 
	
 
	
103,992
	
 
	
 
	
105,795

	
PV AT 11.00% PROFITS RELEASED
	
 
	
 
	
—
	
 
	
 
	
 
	
13,684
	
 
	
 
	
 
	
25,456
	
 
	
 
	
 
	
35,806
	
 
	
 
	
 
	
44,952
	
 
	
 
	
 
	
53,054
	
 
	
 
	
 
	
60,236
	
 
	
 
	
 
	
66,598
	
 
	
 
	
 
	
72,153
	
 
	
 
	
 
	
76,942
	
 
	
 
	
 
	
81,063
	
 
	
 
	
 
	
84,583
	
 
	
 
	
87,548
	
 
	
 
	
90,025
	
 
	
 
	
92,074
	
 
	
 
	
93,748
	
 
	
 
	
95,096

	
PV AT 13.00% PROFITS RELEASED
	
 
	
 
	
—
	
 
	
 
	
 
	
13,442
	
 
	
 
	
 
	
24,801
	
 
	
 
	
 
	
34,611
	
 
	
 
	
 
	
43,126
	
 
	
 
	
 
	
50,536
	
 
	
 
	
 
	
56,989
	
 
	
 
	
 
	
62,603
	
 
	
 
	
 
	
67,418
	
 
	
 
	
 
	
71,496
	
 
	
 
	
 
	
74,943
	
 
	
 
	
 
	
77,836
	
 
	
 
	
80,229
	
 
	
 
	
82,193
	
 
	
 
	
83,789
	
 
	
 
	
85,069
	
 
	
 
	
86,082 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV AT 9.00% BOOK PROFITS
	
 
	
 
	
9.0
	
%
	
 
	
 
	
22,637
	
 
	
 
	
 
	
42,311
	
 
	
 
	
 
	
59,785
	
 
	
 
	
 
	
75,394
	
 
	
 
	
 
	
89,374
	
 
	
 
	
 
	
101,907
	
 
	
 
	
 
	
113,134
	
 
	
 
	
 
	
123,043
	
 
	
 
	
 
	
131,674
	
 
	
 
	
 
	
139,178
	
 
	
 
	
 
	
145,678
	
 
	
 
	
151,247
	
 
	
 
	
155,980
	
 
	
 
	
159,960
	
 
	
 
	
163,264
	
 
	
 
	
165,968

	
PV AT 11.00% BOOK PROFITS
	
 
	
 
	
11.0
	
%
	
 
	
 
	
22,229
	
 
	
 
	
 
	
41,201
	
 
	
 
	
 
	
57,747
	
 
	
 
	
 
	
72,261
	
 
	
 
	
 
	
85,026
	
 
	
 
	
 
	
96,264
	
 
	
 
	
 
	
106,149
	
 
	
 
	
 
	
114,717
	
 
	
 
	
 
	
122,044
	
 
	
 
	
 
	
128,301
	
 
	
 
	
 
	
133,623
	
 
	
 
	
138,100
	
 
	
 
	
141,837
	
 
	
 
	
144,922
	
 
	
 
	
147,438
	
 
	
 
	
149,459

	
PV AT 13.00% BOOK PROFITS
	
 
	
 
	
13.0
	
%
	
 
	
 
	
21,836
	
 
	
 
	
 
	
40,142
	
 
	
 
	
 
	
55,825
	
 
	
 
	
 
	
69,338
	
 
	
 
	
 
	
81,013
	
 
	
 
	
 
	
91,109
	
 
	
 
	
 
	
99,832
	
 
	
 
	
 
	
107,260
	
 
	
 
	
 
	
113,499
	
 
	
 
	
 
	
118,733
	
 
	
 
	
 
	
123,106
	
 
	
 
	
126,719
	
 
	
 
	
129,682
	
 
	
 
	
132,085
	
 
	
 
	
134,009
	
 
	
 
	
135,528 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV AT 9.00% FEDERAL INCOME TAX
	
 
	
 
	
9.0
	
%
	
 
	
 
	
8,703
	
 
	
 
	
 
	
16,167
	
 
	
 
	
 
	
22,712
	
 
	
 
	
 
	
28,485
	
 
	
 
	
 
	
33,592
	
 
	
 
	
 
	
38,114
	
 
	
 
	
 
	
42,116
	
 
	
 
	
 
	
45,601
	
 
	
 
	
 
	
48,591
	
 
	
 
	
 
	
51,152
	
 
	
 
	
 
	
53,353
	
 
	
 
	
55,234
	
 
	
 
	
56,829
	
 
	
 
	
58,166
	
 
	
 
	
59,272
	
 
	
 
	
60,172

	
PV AT 11.00% FEDERAL INCOME TAX
	
 
	
 
	
11.0
	
%
	
 
	
 
	
8,546
	
 
	
 
	
 
	
15,744
	
 
	
 
	
 
	
21,941
	
 
	
 
	
 
	
27,309
	
 
	
 
	
 
	
31,972
	
 
	
 
	
 
	
36,027
	
 
	
 
	
 
	
39,551
	
 
	
 
	
 
	
42,564
	
 
	
 
	
 
	
45,103
	
 
	
 
	
 
	
47,238
	
 
	
 
	
 
	
49,040
	
 
	
 
	
50,552
	
 
	
 
	
51,812
	
 
	
 
	
52,848
	
 
	
 
	
53,690
	
 
	
 
	
54,363

	
PV AT 13.00% FEDERAL INCOME TAX
	
 
	
 
	
13.0
	
%
	
 
	
 
	
8,394
	
 
	
 
	
 
	
15,340
	
 
	
 
	
 
	
21,214
	
 
	
 
	
 
	
26,212
	
 
	
 
	
 
	
30,477
	
 
	
 
	
 
	
34,120
	
 
	
 
	
 
	
37,230
	
 
	
 
	
 
	
39,841
	
 
	
 
	
 
	
42,003
	
 
	
 
	
 
	
43,790
	
 
	
 
	
 
	
45,270
	
 
	
 
	
46,490
	
 
	
 
	
47,489
	
 
	
 
	
48,296
	
 
	
 
	
48,940
	
 
	
 
	
49,446

	
Tax Reserve before unamort DAC
	
 
	
 
	
700,500
	
 
	
 
	
 
	
656,283
	
 
	
 
	
 
	
630,863
	
 
	
 
	
 
	
613,598
	
 
	
 
	
 
	
598,747
	
 
	
 
	
 
	
584,872
	
 
	
 
	
 
	
571,278
	
 
	
 
	
 
	
557,056
	
 
	
 
	
 
	
536,105
	
 
	
 
	
 
	
508,753
	
 
	
 
	
 
	
481,187
	
 
	
 
	
 
	
453,636
	
 
	
 
	
422,422
	
 
	
 
	
390,260
	
 
	
 
	
356,040
	
 
	
 
	
319,500
	
 
	
 
	
282,619

	
GAAP Benefit Reserve
	
 
	
 
	
401,179
	
 
	
 
	
 
	
379,142
	
 
	
 
	
 
	
356,964
	
 
	
 
	
 
	
337,529
	
 
	
 
	
 
	
319,162
	
 
	
 
	
 
	
301,416
	
 
	
 
	
 
	
283,969
	
 
	
 
	
 
	
266,678
	
 
	
 
	
 
	
248,146
	
 
	
 
	
 
	
229,075
	
 
	
 
	
 
	
210,605
	
 
	
 
	
 
	
192,085
	
 
	
 
	
173,185
	
 
	
 
	
154,195
	
 
	
 
	
135,032
	
 
	
 
	
116,093
	
 
	
 
	
96,831

	
GAAP Expense Reserve
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Miscellaneous Primerica - Cost of Cap Calc
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Capital (Based on 300% RBC (i=5.70%))
	
 
	
 
	
22,066
	
 
	
 
	
 
	
20,673
	
 
	
 
	
 
	
19,872
	
 
	
 
	
 
	
19,328
	
 
	
 
	
 
	
18,861
	
 
	
 
	
 
	
18,423
	
 
	
 
	
 
	
17,995
	
 
	
 
	
 
	
17,547
	
 
	
 
	
 
	
16,887
	
 
	
 
	
 
	
16,026
	
 
	
 
	
 
	
15,157
	
 
	
 
	
 
	
14,290
	
 
	
 
	
13,306
	
 
	
 
	
12,293
	
 
	
 
	
11,215
	
 
	
 
	
10,064
	
 
	
 
	
8,903

	
Capital: After-Tax int less change (i=5.70%)
	
 
	
 
	
 
	
 
	
 
	
 
	
2,210
	
 
	
 
	
 
	
1,567
	
 
	
 
	
 
	
1,280
	
 
	
 
	
 
	
1,184
	
 
	
 
	
 
	
1,136
	
 
	
 
	
 
	
1,111
	
 
	
 
	
 
	
1,115
	
 
	
 
	
 
	
1,310
	
 
	
 
	
 
	
1,487
	
 
	
 
	
 
	
1,462
	
 
	
 
	
 
	
1,429
	
 
	
 
	
1,513
	
 
	
 
	
1,506
	
 
	
 
	
1,533
	
 
	
 
	
1,567
	
 
	
 
	
1,535

	
PRE-TAX BOOK PROFIT
	
 
	
 
	
 
	
 
	
 
	
 
	
24,675
	
 
	
 
	
 
	
23,374
	
 
	
 
	
 
	
22,630
	
 
	
 
	
 
	
22,032
	
 
	
 
	
 
	
21,511
	
 
	
 
	
 
	
21,019
	
 
	
 
	
 
	
20,523
	
 
	
 
	
 
	
19,746
	
 
	
 
	
 
	
18,744
	
 
	
 
	
 
	
17,765
	
 
	
 
	
 
	
16,774
	
 
	
 
	
15,663
	
 
	
 
	
14,512
	
 
	
 
	
13,298
	
 
	
 
	
12,037
	
 
	
 
	
10,734

	
FEDERAL INCOME TAX
	
 
	
 
	
 
	
 
	
 
	
 
	
(9,486
	
)
	
 
	
 
	
(8,869
	
)
	
 
	
 
	
(8,476
	
)
	
 
	
 
	
(8,148
	
)
	
 
	
 
	
(7,858
	
)
	
 
	
 
	
(7,585
	
)
	
 
	
 
	
(7,316
	
)
	
 
	
 
	
(6,944
	
)
	
 
	
 
	
(6,494
	
)
	
 
	
 
	
(6,063
	
)
	
 
	
 
	
(5,677
	
)
	
 
	
(5,292
	
)
	
 
	
(4,891
	
)
	
 
	
(4,466
	
)
	
 
	
(4,029
	
)
	
 
	
(3,575)

	
Profit After-Tax, After Cost of Capital
	
 
	
 
	
 
	
 
	
 
	
 
	
17,399
	
 
	
 
	
 
	
16,072
	
 
	
 
	
 
	
15,434
	
 
	
 
	
 
	
15,068
	
 
	
 
	
 
	
14,789
	
 
	
 
	
 
	
14,545
	
 
	
 
	
 
	
14,322
	
 
	
 
	
 
	
14,112
	
 
	
 
	
 
	
13,737
	
 
	
 
	
 
	
13,164
	
 
	
 
	
 
	
12,526
	
 
	
 
	
11,884
	
 
	
 
	
11,127
	
 
	
 
	
10,365
	
 
	
 
	
9,575
	
 
	
 
	
8,694

	
PVʼs-Miscellaneous Primeric
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
9.00 
	
% 
	
 
	
 
	
11.00 
	
%
	
 
	
 
	
13.00 
	
%
	
 
	
 
	
15.00 
	
%
	
 
	
 
	
20.00
	
%
	
 
	
 
	
16.00
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV PRE-TAX BOOK PROFIT
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
176,964
	
 
	
 
	
 
	
157,014
	
 
	
 
	
 
	
140,774
	
 
	
 
	
 
	
127,354
	
 
	
 
	
 
	
102,365
	
 
	
 
	
 
	
121,496
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV FEDERAL INCOME TAX
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
(63,782
	
)
	
 
	
 
	
(56,843
	
)
	
 
	
 
	
(51,168
	
)
	
 
	
 
	
(46,458
	
)
	
 
	
 
	
(37,626
	
)
	
 
	
 
	
(44,395
	
)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV Capital: After-Tax int less change (i=5.70%)

   less Init Cap
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
(8,342
	
)
	
 
	
 
	
(10,189
	
)
	
 
	
 
	
(11,631
	
)
	
 
	
 
	
(12,778
	
)
	
 
	
 
	
(14,799
	
)
	
 
	
 
	
(13,266
	
)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV After-Tax. After Cost of Capital
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
104,840
	
 
	
 
	
 
	
89,981
	
 
	
 
	
 
	
77,974
	
 
	
 
	
 
	
68,118
	
 
	
 
	
 
	
49,940
	
 
	
 
	
 
	
63,835
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

C-8

Milliman

 

 

	
017CIG01\15\0906
	
 
	
Puck(Rev) @06/30/09 - Sens: 7-Year Recapture and PLIC Inforce External Res Financing@28.9% (Preliminary)
	
 
	
 
	
10/21/09
	
 
	
 
	
 
	
 

	
From PUCK0906B.XLS
	
 
	
Line of Business Projection
	
 
	
 
	
03:55 PM
	
 
	
 
	
 
	
 

	
Existing Business at 06/30/2009 (000's)
	
 
	
2026
	
 
	
 
	
2027
	
 
	
 
	
2028
	
 
	
 
	
2029
	
 
	
 
	
2030
	
 
	
 
	
2031
	
 
	
 
	
2032
	
 
	
 
	
2033
	
 
	
 
	
2034
	
 
	
 
	
2035
	
 
	
 
	
2036
	
 
	
 
	
2037
	
 
	
 
	
2038
	
 
	
 
	
2039
	
 

	
Miscellaneous Primerica
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
GROSS PREMIUMS
	
 
	
 
	
9,115
	
 
	
 
	
 
	
8,016
	
 
	
 
	
 
	
6,987
	
 
	
 
	
 
	
6,278
	
 
	
 
	
 
	
5,763
	
 
	
 
	
 
	
5,491
	
 
	
 
	
 
	
5,067
	
 
	
 
	
 
	
4,624
	
 
	
 
	
 
	
4,235
	
 
	
 
	
 
	
3,722
	
 
	
 
	
 
	
3,224
	
 
	
 
	
 
	
2,772
	
 
	
 
	
 
	
2,345
	
 
	
 
	
 
	
—
	
 

	
REINSURANCE PREMIUMS (NET OF ALLOWANCES)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
GROSS INVESTMENT INCOME PLUS FEE INCOME
	
 
	
 
	
14,901
	
 
	
 
	
 
	
12,838
	
 
	
 
	
 
	
10,774
	
 
	
 
	
 
	
8,755
	
 
	
 
	
 
	
7,392
	
 
	
 
	
 
	
6,832
	
 
	
 
	
 
	
6,495
	
 
	
 
	
 
	
6,173
	
 
	
 
	
 
	
5,771
	
 
	
 
	
 
	
5,120
	
 
	
 
	
 
	
4,368
	
 
	
 
	
 
	
3,734
	
 
	
 
	
 
	
3,183
	
 
	
 
	
 
	
2,445
	
 

	
ACCRUAL OF DISCOUNT
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
AMORTIZATION OF IMR
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INVESTMENT EXPENSE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INCOME LOST ON DEFAULTS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL INCOME
	
 
	
 
	
24,016
	
 
	
 
	
 
	
20,854
	
 
	
 
	
 
	
17,761
	
 
	
 
	
 
	
15,033
	
 
	
 
	
 
	
13,156
	
 
	
 
	
 
	
12,323
	
 
	
 
	
 
	
11,562
	
 
	
 
	
 
	
10,797
	
 
	
 
	
 
	
10,006
	
 
	
 
	
 
	
8,842
	
 
	
 
	
 
	
7,592
	
 
	
 
	
 
	
6,507
	
 
	
 
	
 
	
5,528
	
 
	
 
	
 
	
2,445
	
 

	
NET SURRENDERS
	
 
	
 
	
51,324
	
 
	
 
	
 
	
48,782
	
 
	
 
	
 
	
47,632
	
 
	
 
	
 
	
43,853
	
 
	
 
	
 
	
21,574
	
 
	
 
	
 
	
13,171
	
 
	
 
	
 
	
12,525
	
 
	
 
	
 
	
11,701
	
 
	
 
	
 
	
14,429
	
 
	
 
	
 
	
19,403
	
 
	
 
	
 
	
16,827
	
 
	
 
	
 
	
13,880
	
 
	
 
	
 
	
12,687
	
 
	
 
	
 
	
17,399
	
 

	
HEALTH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
DIRECT DEATH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
REINSURANCE DEATH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
ACQUISITION EXPENSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
OTHER EXPENSES
	
 
	
 
	
182
	
 
	
 
	
 
	
160
	
 
	
 
	
 
	
140
	
 
	
 
	
 
	
126
	
 
	
 
	
 
	
115
	
 
	
 
	
 
	
110
	
 
	
 
	
 
	
101
	
 
	
 
	
 
	
92
	
 
	
 
	
 
	
85
	
 
	
 
	
 
	
74
	
 
	
 
	
 
	
64
	
 
	
 
	
 
	
55
	
 
	
 
	
 
	
47
	
 
	
 
	
 
	
—
	
 

	
NET COMMISSIONS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
COST OF FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INCREASE IN LOADING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INCREASE IN RESERVES
	
 
	
 
	
(36,930
	
)
	
 
	
 
	
(36,289
	
)
	
 
	
 
	
(36,962
	
)
	
 
	
 
	
(34,784
	
)
	
 
	
 
	
(13,894
	
)
	
 
	
 
	
(6,032
	
)
	
 
	
 
	
(5,847
	
)
	
 
	
 
	
(5,505
	
)
	
 
	
 
	
(8,670
	
)
	
 
	
 
	
(14,237
	
)
	
 
	
 
	
(12,374
	
)
	
 
	
 
	
(10,063
	
)
	
 
	
 
	
(9,436
	
)
	
 
	
 
	
(16,098
	
)

	
INCR IN RESERVE FINANCING LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL DISBURSEMENTS
	
 
	
 
	
14,577
	
 
	
 
	
 
	
12,654
	
 
	
 
	
 
	
10,809
	
 
	
 
	
 
	
9,195
	
 
	
 
	
 
	
7,796
	
 
	
 
	
 
	
7,249
	
 
	
 
	
 
	
6,779
	
 
	
 
	
 
	
6,289
	
 
	
 
	
 
	
5,844
	
 
	
 
	
 
	
5,241
	
 
	
 
	
 
	
4,518
	
 
	
 
	
 
	
3,872
	
 
	
 
	
 
	
3,298
	
 
	
 
	
 
	
1,301
	
 

	
STATUTORY GAIN
	
 
	
 
	
9,440
	
 
	
 
	
 
	
8,200
	
 
	
 
	
 
	
6,952
	
 
	
 
	
 
	
5,838
	
 
	
 
	
 
	
5,360
	
 
	
 
	
 
	
5,074
	
 
	
 
	
 
	
4,783
	
 
	
 
	
 
	
4,509
	
 
	
 
	
 
	
4,161
	
 
	
 
	
 
	
3,601
	
 
	
 
	
 
	
3,074
	
 
	
 
	
 
	
2,635
	
 
	
 
	
 
	
2,230
	
 
	
 
	
 
	
1,144
	
 

	
CAPITAL GAINS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
GAIN ON CALLS AND ROLLOVER
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS DEFAULT LOSSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS IMR CAPITALIZATION
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
BOOK PROFIT
	
 
	
 
	
9,440
	
 
	
 
	
 
	
8,200
	
 
	
 
	
 
	
6,952
	
 
	
 
	
 
	
5,838
	
 
	
 
	
 
	
5,360
	
 
	
 
	
 
	
5,074
	
 
	
 
	
 
	
4,783
	
 
	
 
	
 
	
4,509
	
 
	
 
	
 
	
4,161
	
 
	
 
	
 
	
3,601
	
 
	
 
	
 
	
3,074
	
 
	
 
	
 
	
2,635
	
 
	
 
	
 
	
2,230
	
 
	
 
	
 
	
1,144
	
 

	
INCREASE IN SURPLUS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
FEDERAL INCOME TAX
	
 
	
 
	
3,125
	
 
	
 
	
 
	
2,698
	
 
	
 
	
 
	
2,269
	
 
	
 
	
 
	
1,894
	
 
	
 
	
 
	
1,744
	
 
	
 
	
 
	
1,665
	
 
	
 
	
 
	
1,578
	
 
	
 
	
 
	
1,494
	
 
	
 
	
 
	
1,383
	
 
	
 
	
 
	
1,192
	
 
	
 
	
 
	
1,011
	
 
	
 
	
 
	
860
	
 
	
 
	
 
	
720
	
 
	
 
	
 
	
292
	
 

	
PROFITS RELEASED
	
 
	
 
	
6,315
	
 
	
 
	
 
	
5,502
	
 
	
 
	
 
	
4,683
	
 
	
 
	
 
	
3,945
	
 
	
 
	
 
	
3,616
	
 
	
 
	
 
	
3,409
	
 
	
 
	
 
	
3,205
	
 
	
 
	
 
	
3,015
	
 
	
 
	
 
	
2,778
	
 
	
 
	
 
	
2,409
	
 
	
 
	
 
	
2,063
	
 
	
 
	
 
	
1,775
	
 
	
 
	
 
	
1,510
	
 
	
 
	
 
	
852
	
 

	
STATUTORY RESERVE (GA) (Canada=GAAP)
	
 
	
 
	
245,690
	
 
	
 
	
 
	
209,401
	
 
	
 
	
 
	
172,439
	
 
	
 
	
 
	
137,655
	
 
	
 
	
 
	
123,761
	
 
	
 
	
 
	
117,729
	
 
	
 
	
 
	
111,882
	
 
	
 
	
 
	
106,377
	
 
	
 
	
 
	
97,708
	
 
	
 
	
 
	
83,471
	
 
	
 
	
 
	
71,097
	
 
	
 
	
 
	
61,034
	
 
	
 
	
 
	
51,598
	
 
	
 
	
 
	
35,500
	
 

	
RESERVE FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL LIABILITY (GA)
	
 
	
 
	
245,690
	
 
	
 
	
 
	
209,401
	
 
	
 
	
 
	
172,439
	
 
	
 
	
 
	
137,655
	
 
	
 
	
 
	
123,761
	
 
	
 
	
 
	
117,729
	
 
	
 
	
 
	
111,882
	
 
	
 
	
 
	
106,377
	
 
	
 
	
 
	
97,708
	
 
	
 
	
 
	
83,471
	
 
	
 
	
 
	
71,097
	
 
	
 
	
 
	
61,034
	
 
	
 
	
 
	
51,598
	
 
	
 
	
 
	
35,500
	
 

	
SEPARATE ACCOUNT LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TAX RESERVE (GA)
	
 
	
 
	
240,754
	
 
	
 
	
 
	
204,956
	
 
	
 
	
 
	
168,463
	
 
	
 
	
 
	
134,108
	
 
	
 
	
 
	
120,591
	
 
	
 
	
 
	
114,875
	
 
	
 
	
 
	
109,302
	
 
	
 
	
 
	
104,038
	
 
	
 
	
 
	
95,579
	
 
	
 
	
 
	
81,538
	
 
	
 
	
 
	
69,349
	
 
	
 
	
 
	
59,464
	
 
	
 
	
 
	
50,200
	
 
	
 
	
 
	
34,413
	
 

	
INTEREST MAINTENANCE RESERVE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
POLICIES IN FORCE (UNSCALED)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INSURANCE IN FORCE (NET)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
CASH VALUE IN FORCE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
ECONOMIC RESERVE (Canada=GAAP)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
EXCESS RESERVE (STAT LESS ECON)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
EXCESS RESERVE (STAT less ECON Floored at Zero)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
GROSS DEFERRED PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
NET DEFERRED PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
PV AT 9.00% PROFITS RELEASED
	
 
	
 
	
107,254
	
 
	
 
	
 
	
108,421
	
 
	
 
	
 
	
109,332
	
 
	
 
	
 
	
110,035
	
 
	
 
	
 
	
110,627
	
 
	
 
	
 
	
111,139
	
 
	
 
	
 
	
111,581
	
 
	
 
	
 
	
111,962
	
 
	
 
	
 
	
112,284
	
 
	
 
	
 
	
112,540
	
 
	
 
	
 
	
112,742
	
 
	
 
	
 
	
112,901
	
 
	
 
	
 
	
113,025
	
 
	
 
	
 
	
113,089
	
 

	
PV AT 11.00% PROFITS RELEASED
	
 
	
 
	
96,167
	
 
	
 
	
 
	
97,008
	
 
	
 
	
 
	
97,653
	
 
	
 
	
 
	
98,142
	
 
	
 
	
 
	
98,546
	
 
	
 
	
 
	
98,889
	
 
	
 
	
 
	
99,180
	
 
	
 
	
 
	
99,426
	
 
	
 
	
 
	
99,631
	
 
	
 
	
 
	
99,790
	
 
	
 
	
 
	
99,914
	
 
	
 
	
 
	
100,009
	
 
	
 
	
 
	
100,082
	
 
	
 
	
 
	
100,120
	
 

	
PV AT 13.00% PROFITS RELEASED
	
 
	
 
	
86,873
	
 
	
 
	
 
	
87,482
	
 
	
 
	
 
	
87,942
	
 
	
 
	
 
	
88,284
	
 
	
 
	
 
	
88,562
	
 
	
 
	
 
	
88,793
	
 
	
 
	
 
	
88,986
	
 
	
 
	
 
	
89,147
	
 
	
 
	
 
	
89,277
	
 
	
 
	
 
	
89,378
	
 
	
 
	
 
	
89,454
	
 
	
 
	
 
	
89,512
	
 
	
 
	
 
	
89,555
	
 
	
 
	
 
	
89,577
	
 

	
PV AT 9.00% BOOK PROFITS
	
 
	
 
	
168,149
	
 
	
 
	
 
	
169,887
	
 
	
 
	
 
	
171,239
	
 
	
 
	
 
	
172,281
	
 
	
 
	
 
	
173,159
	
 
	
 
	
 
	
173,921
	
 
	
 
	
 
	
174,580
	
 
	
 
	
 
	
175,149
	
 
	
 
	
 
	
175,632
	
 
	
 
	
 
	
176,015
	
 
	
 
	
 
	
176,315
	
 
	
 
	
 
	
176,551
	
 
	
 
	
 
	
176,734
	
 
	
 
	
 
	
176,821
	
 

	
PV AT 11.00% BOOK PROFITS
	
 
	
 
	
151,060
	
 
	
 
	
 
	
152,313
	
 
	
 
	
 
	
153,271
	
 
	
 
	
 
	
153,995
	
 
	
 
	
 
	
154,594
	
 
	
 
	
 
	
155,104
	
 
	
 
	
 
	
155,538
	
 
	
 
	
 
	
155,907
	
 
	
 
	
 
	
156,213
	
 
	
 
	
 
	
156,452
	
 
	
 
	
 
	
156,635
	
 
	
 
	
 
	
156,777
	
 
	
 
	
 
	
156,885
	
 
	
 
	
 
	
156,935
	
 

	
PV AT 13.00% BOOK PROFITS
	
 
	
 
	
136,710
	
 
	
 
	
 
	
137,619
	
 
	
 
	
 
	
138,300
	
 
	
 
	
 
	
138,807
	
 
	
 
	
 
	
139,219
	
 
	
 
	
 
	
139,564
	
 
	
 
	
 
	
139,851
	
 
	
 
	
 
	
140,091
	
 
	
 
	
 
	
140,287
	
 
	
 
	
 
	
140,437
	
 
	
 
	
 
	
140,551
	
 
	
 
	
 
	
140,637
	
 
	
 
	
 
	
140,701
	
 
	
 
	
 
	
140,730
	
 

	
PV AT 9.00% FEDERAL INCOME TAX
	
 
	
 
	
60,895
	
 
	
 
	
 
	
61,467
	
 
	
 
	
 
	
61,908
	
 
	
 
	
 
	
62,246
	
 
	
 
	
 
	
62,531
	
 
	
 
	
 
	
62,781
	
 
	
 
	
 
	
62,999
	
 
	
 
	
 
	
63,188
	
 
	
 
	
 
	
63,348
	
 
	
 
	
 
	
63,475
	
 
	
 
	
 
	
63,573
	
 
	
 
	
 
	
63,650
	
 
	
 
	
 
	
63,710
	
 
	
 
	
 
	
63,732
	
 

	
PV AT 11.00% FEDERAL INCOME TAX
	
 
	
 
	
54,893
	
 
	
 
	
 
	
55,306
	
 
	
 
	
 
	
55,618
	
 
	
 
	
 
	
55,853
	
 
	
 
	
 
	
56,048
	
 
	
 
	
 
	
56,215
	
 
	
 
	
 
	
56,358
	
 
	
 
	
 
	
56,480
	
 
	
 
	
 
	
56,582
	
 
	
 
	
 
	
56,661
	
 
	
 
	
 
	
56,722
	
 
	
 
	
 
	
56,768
	
 
	
 
	
 
	
56,803
	
 
	
 
	
 
	
56,816
	
 

	
PV AT 13.00% FEDERAL INCOME TAX
	
 
	
 
	
49,837
	
 
	
 
	
 
	
50,136
	
 
	
 
	
 
	
50,359
	
 
	
 
	
 
	
50,523
	
 
	
 
	
 
	
50,657
	
 
	
 
	
 
	
50,770
	
 
	
 
	
 
	
50,865
	
 
	
 
	
 
	
50,945
	
 
	
 
	
 
	
51,010
	
 
	
 
	
 
	
51,059
	
 
	
 
	
 
	
51,097
	
 
	
 
	
 
	
51,125
	
 
	
 
	
 
	
51,146
	
 
	
 
	
 
	
51,153
	
 

	
Tax Reserve before unamort DAC
	
 
	
 
	
245,690
	
 
	
 
	
 
	
209,401
	
 
	
 
	
 
	
172,439
	
 
	
 
	
 
	
137,655
	
 
	
 
	
 
	
123,761
	
 
	
 
	
 
	
117,729
	
 
	
 
	
 
	
111,882
	
 
	
 
	
 
	
106,377
	
 
	
 
	
 
	
97,708
	
 
	
 
	
 
	
83,471
	
 
	
 
	
 
	
71,097
	
 
	
 
	
 
	
61,034
	
 
	
 
	
 
	
51,598
	
 
	
 
	
 
	
35,500
	
 

	
GAAP Benefit Reserve
	
 
	
 
	
77,437
	
 
	
 
	
58,284
	
 
	
 
	
 
	
39,104
	
 
	
 
	
 
	
20,753
	
 
	
 
	
 
	
19,002
	
 
	
 
	
 
	
18,180
	
 
	
 
	
 
	
16,880
	
 
	
 
	
 
	
15,521
	
 
	
 
	
 
	
14,270
	
 
	
 
	
 
	
12,545
	
 
	
 
	
 
	
10,856
	
 
	
 
	
 
	
9,307
	
 
	
 
	
 
	
7,828
	
 
	
 
	
 
	
—
	
 

	
GAAP Expense Reserve
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
Miscellaneous Primerica - Cost of Cap Calc
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Capital (Based on 300% RBC (i=5.70%))
	
 
	
 
	
7,739
	
 
	
 
	
 
	
6,596
	
 
	
 
	
 
	
5,432
	
 
	
 
	
 
	
4,336
	
 
	
 
	
 
	
3,898
	
 
	
 
	
 
	
3,708 
	
 
	
 
	
 
	
3,524
	
 
	
 
	
 
	
3,351
	
 
	
 
	
 
	
3,078
	
 
	
 
	
 
	
2,629
	
 
	
 
	
 
	
2,240
	
 
	
 
	
 
	
1,923
	
 
	
 
	
 
	
1,625
	
 
	
 
	
 
	
1,118
	
 

	
Capital: After-Tax int less change (i=5.70%)
	
 
	
 
	
1,493
	
 
	
 
	
 
	
1,430
	
 
	
 
	
 
	
1,409
	
 
	
 
	
 
	
1,297
	
 
	
 
	
 
	
598
	
 
	
 
	
 
	
334
	
 
	
 
	
 
	
322
	
 
	
 
	
 
	
304
	
 
	
 
	
 
	
397
	
 
	
 
	
 
	
562
	
 
	
 
	
 
	
487
	
 
	
 
	
 
	
400
	
 
	
 
	
 
	
368
	
 
	
 
	
 
	
567
	
 

	
PRE-TAX BOOK PROFIT
	
 
	
 
	
9,440
	
 
	
 
	
 
	
8,200
	
 
	
 
	
 
	
6,952
	
 
	
 
	
 
	
5,838
	
 
	
 
	
 
	
5,360
	
 
	
 
	
 
	
5,074
	
 
	
 
	
 
	
4,783
	
 
	
 
	
 
	
4,509
	
 
	
 
	
 
	
4,161
	
 
	
 
	
 
	
3,601
	
 
	
 
	
 
	
3,074
	
 
	
 
	
 
	
2,635
	
 
	
 
	
 
	
2,230
	
 
	
 
	
 
	
1,144
	
 

	
FEDERAL INCOME TAX
	
 
	
 
	
(3,125
	
)
	
 
	
 
	
(2,698
	
)
	
 
	
 
	
(2,269
	
)
	
 
	
 
	
(1,894
	
)
	
 
	
 
	
(1,744
	
)
	
 
	
 
	
(1,665
	
)
	
 
	
 
	
(1,578
	
)
	
 
	
 
	
(1,494
	
)
	
 
	
 
	
(1,383
	
)
	
 
	
 
	
(1,192
	
)
	
 
	
 
	
(1,011
	
)
	
 
	
 
	
(860
	
)
	
 
	
 
	
(720
	
)
	
 
	
 
	
(292
	
)

	
Profit After-Tax, After Cost of Capital
	
 
	
 
	
7,808
	
 
	
 
	
 
	
6,932
	
 
	
 
	
 
	
6,092
	
 
	
 
	
 
	
5,242
	
 
	
 
	
 
	
4,214
	
 
	
 
	
 
	
3,743
	
 
	
 
	
 
	
3,526
	
 
	
 
	
 
	
3,319
	
 
	
 
	
 
	
3,176
	
 
	
 
	
 
	
2,972
	
 
	
 
	
 
	
2,550
	
 
	
 
	
 
	
2,175
	
 
	
 
	
 
	
1,878
	
 
	
 
	
 
	
1,420
	
 

	
PV’s -- Miscellaneous Primerica 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV PRE-TAX BOOK PROFIT
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV FEDERAL INCOME TAX
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV Capital: After-Tax int less change (i=5.70%) less Init Cap
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV After-Tax, After Cost of Capital
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

 

C-9

Milliman

 

 

	
017CIG01\15\0906
	
 
	
Puck(Rev) @06/30/09 - Sens: 7-Year Recapture and PLIC In Force External ]
	
 
	
 
	
10/21/09
	
 

	
From PUCK0906B.XLS
	
 
	
Line of Business Projection - Present Value of Components of Profi
	
 
	
 
	
03:55 PM
	
 

	
 
	
 
	
As of June 30, 2009
	
 
	
 
	
 
	
 

	
Existing Business at 06/30/2009 (000ʼs)
	
 
	
9.00%
	
 
	
 
	
11.00%
	
 
	
 
	
13.00%
	
 
	
 
	
15.00%
	
 
	
 
	
 
	
 

	
Miscellaneous Primerica
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
GROSS PREMIUMS
	
 
	
205,303
	
 
	
 
	
183,840
	
 
	
 
	
166,207
	
 
	
 
	
151,509
	
 
	
 
	
 
	
 

	
REINSURANCE PREMIUMS (NET 

   OF ALLOWANCES)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
 
	
 

	
GROSS INVESTMENT INCOME

   PLUS FEE INCOME
	
 
	
275,157
	
 
	
 
	
244,194
	
 
	
 
	
218,960
	
 
	
 
	
198,091
	
 
	
 
	
 
	
 

	
ACCRUAL OF DISCOUNT
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
 
	
 

	
AMORTIZATION OF IMR
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
 
	
 

	
LESS INVESTMENT EXPENSE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
 
	
 

	
LESS INCOME LOST ON DEFAULTS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
 
	
 

	
TOTAL INCOME
	
 
	
480,460
	
 
	
 
	
428,034
	
 
	
 
	
385,168
	
 
	
 
	
349,600
	
 
	
 
	
 
	
 

	
NET SURRENDERS
	
 
	
549,747
	
 
	
 
	
480,096
	
 
	
 
	
425,140
	
 
	
 
	
380,986
	
 
	
 
	
 
	
 

	
HEALTH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
 
	
 

	
DIRECT DEATH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
 
	
 

	
REINSURANCE DEATH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
 
	
 

	
ACQUISITION EXPENSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
 
	
 

	
OTHER EXPENSES
	
 
	
4,106
	
 
	
 
	
3,677
	
 
	
 
	
3,324
	
 
	
 
	
3,030
	
 
	
 
	
 
	
 

	
NET COMMISSIONS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
 
	
 

	
COST OF FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
 
	
 

	
INCREASE IN LOADING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
 
	
 

	
INCREASE IN RESERVES
	
 
	
(250,357
	
)
	
 
	
(212,752
	
)
	
 
	
(184,070
	
)
	
 
	
(161,770
	
)
	
 
	
 
	
 

	
INCR IN RESERVE FINANCING 

   LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
 
	
 

	
TOTAL DISBURSEMENTS
	
 
	
303,496
	
 
	
 
	
271,021
	
 
	
 
	
244,394
	
 
	
 
	
222,246
	
 
	
 
	
 
	
 

	
STATUTORY GAIN
	
 
	
176,964
	
 
	
 
	
157,014
	
 
	
 
	
140,774
	
 
	
 
	
127,354
	
 
	
 
	
 
	
 

	
CAPITAL GAINS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
 
	
 

	
GAIN ON CALLS AND ROLLOVER
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
 
	
 

	
LESS DEFAULT LOSSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
 
	
 

	
LESS IMR CAPITALIZATION
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
 
	
 

	
BOOK PROFIT
	
 
	
176,964
	
 
	
 
	
157,014
	
 
	
 
	
140,774
	
 
	
 
	
127,354
	
 
	
 
	
 
	
 

	
INCREASE IN SURPLUS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
 
	
 

	
FEDERAL INCOME TAX
	
 
	
63,782
	
 
	
 
	
56,843
	
 
	
 
	
51,168
	
 
	
 
	
46,458
	
 
	
 
	
 
	
 

	
PROFITS RELEASED
	
 
	
113,182
	
 
	
 
	
100,171
	
 
	
 
	
89,605
	
 
	
 
	
80,896
	
 
	
 
	
 
	
 

 

 

 

C-10

Milliman

 

 

	
017CIG0l\15\0906
	
 
	
 
	
 
	
 
	
Puck(Rev) @06/30/09 - Sens: 7-Year Recapture and PLIC Inforce External Res Financing@28.9% (Preliminary)
	
 
	
10/21/09
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
From PUCK0906B.XLS
	
 
	
 
	
 
	
 
	
Line of Business Projection
	
 
	
3:55 PM
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Existing Business at 06/30/2009 (000's)
	
2009
	
 
	
2010
	
 
	
2011
	
 
	
2012
	
 
	
2013
	
 
	
2014
	
 
	
2015
	
 
	
2016
	
 
	
2017
	
 
	
2018
	
 
	
2019
	
 
	
2020
	
 
	
2021
	
 
	
2022
	
 
	
2023
	
 
	
2024
	
 
	
2025
	
 

	
Total Existing Business - Primerica
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
GROSS PREMIUMS
	
 
	
—
	
 
	
 
	
1,663,328
	
 
	
 
	
1,568,852
	
 
	
 
	
1,503,569
	
 
	
 
	
1,454,853
	
 
	
 
	
1,415,711
	
 
	
 
	
1,380,683
	
 
	
 
	
1,348,863
	
 
	
 
	
1,287,638
	
 
	
 
	
1,211,314
	
 
	
 
	
1,148,920
	
 
	
 
	
1,079,415
	
 
	
 
	
1,003,285
	
 
	
 
	
927,321
	
 
	
 
	
851,874
	
 
	
 
	
783,556
	
 
	
 
	
714,671
	
 

	
REINSURANCE PREMIUMS (NET OF ALLOWANCES
	
 
	
—
	
 
	
 
	
(526,264
	
)
	
 
	
(544,816
	
)
	
 
	
(565,316
	
)
	
 
	
(587,946
	
)
	
 
	
(612,207
	
)
	
 
	
(631,303
	
)
	
 
	
(648,656
	
)
	
 
	
(643,315
	
)
	
 
	
(633,854
	
)
	
 
	
(625,817
	
)
	
 
	
(612,076
	
)
	
 
	
(589,509
	
)
	
 
	
(561,293
	
)
	
 
	
(526,112
	
)
	
 
	
(481,502
	
)
	
 
	
(429,772
	
)

	
GROSS INVESTMENT INCOME PLUS FEE INCOME
	
 
	
—
	
 
	
 
	
193,290
	
 
	
 
	
202,074
	
 
	
 
	
198,787
	
 
	
 
	
194,442
	
 
	
 
	
193,171
	
 
	
 
	
190,518
	
 
	
 
	
186,234
	
 
	
 
	
179,884
	
 
	
 
	
170,874
	
 
	
 
	
159,775
	
 
	
 
	
147,085
	
 
	
 
	
132,294
	
 
	
 
	
115,220
	
 
	
 
	
97,579
	
 
	
 
	
79,683
	
 
	
 
	
60,936
	
 

	
ACCRUAL OF DISCOUNT
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
AMORTIZATION OF IMR
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INVESTMENT EXPENSE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INCOME LOST ON DEFAULTS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL INCOME
	
 
	
—
	
 
	
 
	
1,330,354
	
 
	
 
	
1,226,110
	
 
	
 
	
1,137,040
	
 
	
 
	
1,061,349
	
 
	
 
	
996,675
	
 
	
 
	
939,897
	
 
	
 
	
886,441
	
 
	
 
	
824,207
	
 
	
 
	
748,334
	
 
	
 
	
682,878
	
 
	
 
	
614,423
	
 
	
 
	
546,070
	
 
	
 
	
481,248
	
 
	
 
	
423,342
	
 
	
 
	
381,737
	
 
	
 
	
345,834
	
 

	
NET SURRENDERS
	
 
	
—
	
 
	
 
	
85,105
	
 
	
 
	
63,709
	
 
	
 
	
53,893
	
 
	
 
	
50,006
	
 
	
 
	
47,650
	
 
	
 
	
45,989
	
 
	
 
	
45,209
	
 
	
 
	
50,315
	
 
	
 
	
54,784
	
 
	
 
	
53,031
	
 
	
 
	
51,385
	
 
	
 
	
53,325
	
 
	
 
	
52,366
	
 
	
 
	
52,488
	
 
	
 
	
52,920
	
 
	
 
	
51,369
	
 

	
HEALTH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
DIRECT DEATH BENEFITS
	
 
	
—
	
 
	
 
	
831,597
	
 
	
 
	
826,626
	
 
	
 
	
839,169
	
 
	
 
	
855,851
	
 
	
 
	
873,335
	
 
	
 
	
890,506
	
 
	
 
	
904,893
	
 
	
 
	
901,233
	
 
	
 
	
878,524
	
 
	
 
	
852,907
	
 
	
 
	
827,141
	
 
	
 
	
790,427
	
 
	
 
	
750,598
	
 
	
 
	
704,271
	
 
	
 
	
649,460
	
 
	
 
	
593,955
	
 

	
REINSURANCE DEATH BENEFITS
	
 
	
—
	
 
	
 
	
(458,433
	
)
	
 
	
(466,485
	
)
	
 
	
(483,849
	
)
	
 
	
(503,132
	
)
	
 
	
(523,319
	
)
	
 
	
(542,605
	
)
	
 
	
(559,349
	
)
	
 
	
(562,619
	
)
	
 
	
(551,116
	
)
	
 
	
(535,473
	
)
	
 
	
(520,776
	
)
	
 
	
(501,809
	
)
	
 
	
(480,342
	
)
	
 
	
(453,560
	
)
	
 
	
(418,507
	
)
	
 
	
(379,260
	
)

	
ACQUISITION EXPENSES
	
 
	
—
	
 
	
 
	
3,116
	
 
	
 
	
2,433
	
 
	
 
	
1,974
	
 
	
 
	
1,841
	
 
	
 
	
1,783
	
 
	
 
	
1,623
	
 
	
 
	
1,776
	
 
	
 
	
610
	
 
	
 
	
767
	
 
	
 
	
813
	
 
	
 
	
147
	
 
	
 
	
162
	
 
	
 
	
154
	
 
	
 
	
134
	
 
	
 
	
139
	
 
	
 
	
81
	
 

	
OTHER EXPENSES
	
 
	
—
	
 
	
 
	
112,008
	
 
	
 
	
104,216
	
 
	
 
	
98,981
	
 
	
 
	
94,770
	
 
	
 
	
91,070
	
 
	
 
	
87,776
	
 
	
 
	
84,754
	
 
	
 
	
80,708
	
 
	
 
	
75,783
	
 
	
 
	
71,356
	
 
	
 
	
67,046
	
 
	
 
	
62,236
	
 
	
 
	
57,483
	
 
	
 
	
52,743
	
 
	
 
	
47,896
	
 
	
 
	
43,217
	
 

	
NET COMMISSIONS
	
 
	
—
	
 
	
 
	
68,707
	
 
	
 
	
42,046
	
 
	
 
	
36,286
	
 
	
 
	
34,007
	
 
	
 
	
32,488
	
 
	
 
	
30,971
	
 
	
 
	
29,970
	
 
	
 
	
15,697
	
 
	
 
	
13,485
	
 
	
 
	
12,853
	
 
	
 
	
4,200
	
 
	
 
	
2,219
	
 
	
 
	
2,248
	
 
	
 
	
2,016
	
 
	
 
	
2,001
	
 
	
 
	
1,302
	
 

	
COST OF FINANCING
	
 
	
—
	
 
	
 
	
30,465
	
 
	
 
	
30,465
	
 
	
 
	
30,465
	
 
	
 
	
30,052
	
 
	
 
	
27,101
	
 
	
 
	
23,980
	
 
	
 
	
20,987
	
 
	
 
	
17,998
	
 
	
 
	
15,018
	
 
	
 
	
12,146
	
 
	
 
	
9,485
	
 
	
 
	
6,823
	
 
	
 
	
4,057
	
 
	
 
	
1,538
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INCREASE IN LOADING
	
 
	
—
	
 
	
 
	
(762
	
)
	
 
	
(568
	
)
	
 
	
(134
	
)
	
 
	
(302
	
)
	
 
	
1,107
	
 
	
 
	
660
	
 
	
 
	
569
	
 
	
 
	
(542
	
)
	
 
	
(1,186
	
)
	
 
	
1,596
	
 
	
 
	
(141
	
)
	
 
	
(667
	
)
	
 
	
(651
	
)
	
 
	
(1,170
	
)
	
 
	
2,361
	
 
	
 
	
130
	
 

	
INCREASE IN RESERVES
	
 
	
—
	
 
	
 
	
188,881
	
 
	
 
	
(26,440
	
)
	
 
	
(61,131
	
)
	
 
	
(94,864
	
)
	
 
	
(128,523
	
)
	
 
	
(153,755
	
)
	
 
	
(193,328
	
)
	
 
	
(232,939
	
)
	
 
	
(273,532
	
)
	
 
	
(298,679
	
)
	
 
	
(334,835
	
)
	
 
	
(382,062
	
)
	
 
	
(387,592
	
)
	
 
	
(366,494
	
)
	
 
	
(332,328
	
)
	
 
	
(269,452
	
)

	
INCR IN RESERVE FINANCING LIABILITY
	
 
	
—
	
 
	
 
	
(13,756
	
)
	
 
	
(1,733
	
)
	
 
	
13,762
	
 
	
 
	
98,354
	
 
	
 
	
104,030
	
 
	
 
	
99,785
	
 
	
 
	
99,632
	
 
	
 
	
99,339
	
 
	
 
	
95,736
	
 
	
 
	
88,690
	
 
	
 
	
88,718
	
 
	
 
	
92,201
	
 
	
 
	
83,979
	
 
	
 
	
51,263
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL DISBURSEMENTS
	
 
	
—
	
 
	
 
	
846,929
	
 
	
 
	
574,269
	
 
	
 
	
529,416
	
 
	
 
	
566,585
	
 
	
 
	
526,723
	
 
	
 
	
484,930
	
 
	
 
	
435,112
	
 
	
 
	
369,799
	
 
	
 
	
308,264
	
 
	
 
	
259,239
	
 
	
 
	
192,368
	
 
	
 
	
122,856
	
 
	
 
	
82,301
	
 
	
 
	
43,229
	
 
	
 
	
3,943
	
 
	
 
	
41,342
	
 

	
STATUTORY GAIN
	
 
	
—
	
 
	
 
	
483,425
	
 
	
 
	
651,841
	
 
	
 
	
607,624
	
 
	
 
	
494,764
	
 
	
 
	
469,952
	
 
	
 
	
454,967
	
 
	
 
	
451,329
	
 
	
 
	
454,409
	
 
	
 
	
440,070
	
 
	
 
	
423,639
	
 
	
 
	
422,055
	
 
	
 
	
423,215
	
 
	
 
	
398,946
	
 
	
 
	
380,113
	
 
	
 
	
377,794
	
 
	
 
	
304,492
	
 

	
CAPITAL GAINS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
GAIN ON CALLS AND ROLLOVER
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS DEFAULT LOSSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS IMR CAPITALIZATION
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
BOOK PROFIT
	
 
	
—
	
 
	
 
	
483,425
	
 
	
 
	
651,841
	
 
	
 
	
607,624
	
 
	
 
	
494,764
	
 
	
 
	
469,952
	
 
	
 
	
454,967
	
 
	
 
	
451,329
	
 
	
 
	
454,409
	
 
	
 
	
440,070
	
 
	
 
	
423,639
	
 
	
 
	
422,055
	
 
	
 
	
423,215
	
 
	
 
	
398,946
	
 
	
 
	
380,113
	
 
	
 
	
377,794
	
 
	
 
	
304,492
	
 

	
INCREASE IN SURPLUS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
FEDERAL INCOME TAX
	
 
	
—
	
 
	
 
	
226,783
	
 
	
 
	
212,895
	
 
	
 
	
199,898
	
 
	
 
	
189,332
	
 
	
 
	
182,016
	
 
	
 
	
174,833
	
 
	
 
	
173,436
	
 
	
 
	
174,278
	
 
	
 
	
168,303
	
 
	
 
	
160,950
	
 
	
 
	
162,252
	
 
	
 
	
165,844
	
 
	
 
	
154,677
	
 
	
 
	
137,061
	
 
	
 
	
118,738
	
 
	
 
	
93,671
	
 

	
PROFITS RELEASED
	
 
	
—
	
 
	
 
	
256,642
	
 
	
 
	
438,946
	
 
	
 
	
407,726
	
 
	
 
	
305,433
	
 
	
 
	
287,936
	
 
	
 
	
280,135
	
 
	
 
	
277,893
	
 
	
 
	
280,131
	
 
	
 
	
271,767
	
 
	
 
	
262,689
	
 
	
 
	
259,804
	
 
	
 
	
257,371
	
 
	
 
	
244,270
	
 
	
 
	
243,052
	
 
	
 
	
259,056
	
 
	
 
	
210,821
	
 

	
STATUTORY RESERVE (GA) (Canada=GAAP)
	
 
	
4,170,489
	
 
	
 
	
4,359,370
	
 
	
 
	
4,332,930
	
 
	
 
	
4,271,799
	
 
	
 
	
4,176,934
	
 
	
 
	
4,048,411
	
 
	
 
	
3,894,656
	
 
	
 
	
3,701,328
	
 
	
 
	
3,468,389
	
 
	
 
	
3,194,857
	
 
	
 
	
2,896,178
	
 
	
 
	
2,561,342
	
 
	
 
	
2,179,281
	
 
	
 
	
1,791,689
	
 
	
 
	
1,425,194
	
 
	
 
	
1,092,867
	
 
	
 
	
823,415
	
 

	
RESERVE FINANCING
	
 
	
(1,000,000
	
)
	
 
	
(1,013,756
	
)
	
 
	
(1,015,489
	
)
	
 
	
(1,001,727
	
)
	
 
	
(903,373
	
)
	
 
	
(799,343
	
)
	
 
	
(699,558
	
)
	
 
	
(599,926
	
)
	
 
	
(500,587
	
)
	
 
	
(404,851
	
)
	
 
	
(316,161
	
)
	
 
	
(227,443
	
)
	
 
	
(135,242
	
)
	
 
	
(51,263
	
)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL LIABILITY (GA)
	
 
	
3,158,800
	
 
	
 
	
3,334,650
	
 
	
 
	
3,306,817
	
 
	
 
	
3,259,513
	
 
	
 
	
3,262,271
	
 
	
 
	
3,236,847
	
 
	
 
	
3,181,286
	
 
	
 
	
3,085,668
	
 
	
 
	
2,952,683
	
 
	
 
	
2,775,333
	
 
	
 
	
2,566,079
	
 
	
 
	
2,320,754
	
 
	
 
	
2,031,668
	
 
	
 
	
1,728,848
	
 
	
 
	
1,413,879
	
 
	
 
	
1,081,932
	
 
	
 
	
813,160
	
 

	
SEPARATE ACCOUNT LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TAX RESERVE (GA)
	
 
	
3,268,543
	
 
	
 
	
3,279,868
	
 
	
 
	
3,295,605
	
 
	
 
	
3,284,787
	
 
	
 
	
3,241,361
	
 
	
 
	
3,165,844
	
 
	
 
	
3,065,728
	
 
	
 
	
2,925,908
	
 
	
 
	
2,749,395
	
 
	
 
	
2,531,249
	
 
	
 
	
2,285,778
	
 
	
 
	
1,998,931
	
 
	
 
	
1,659,220
	
 
	
 
	
1,313,413
	
 
	
 
	
986,955
	
 
	
 
	
693,550
	
 
	
 
	
461,638
	
 

	
INTEREST MAINTENANCE RESERVE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
POLICIES IN FORCE (UNSCALED)
	
 
	
1,978,221
	
 
	
 
	
1,752,155
	
 
	
 
	
1,594,900
	
 
	
 
	
1,472,724
	
 
	
 
	
1,365,506
	
 
	
 
	
1,268,463
	
 
	
 
	
1,182,547
	
 
	
 
	
1,102,618
	
 
	
 
	
1,005,547
	
 
	
 
	
916,075
	
 
	
 
	
836,542
	
 
	
 
	
758,807
	
 
	
 
	
680,313
	
 
	
 
	
608,289
	
 
	
 
	
538,887
	
 
	
 
	
470,013
	
 
	
 
	
408,183
	
 

	
INSURANCE IN FORCE (NET)
	
158,301,613
	
 
	
141,946,950
	
 
	
 
	
128,302,382
	
 
	
117,115,355
	
 
	
107,059,992
	
 
	
 
	
97,496,176
	
 
	
 
	
90,665,821
	
 
	
84,487,337
	
 
	
77,314,381
	
 
	
 
	
71,044,898
	
 
	
65,423,431
	
 
	
 
	
59,500,262
	
 
	
 
	
52,943,171
	
 
	
46,596,131
	
 
	
40,772,538
	
 
	
35,099,645
	
 
	
 
	
30,428,279
	
 

	
CASH VALUE IN FORCE
	
 
	
4,931
	
 
	
 
	
4,020
	
 
	
 
	
3,742
	
 
	
 
	
5,164
	
 
	
 
	
6,560
	
 
	
 
	
7,720
	
 
	
 
	
7,950
	
 
	
 
	
7,939
	
 
	
 
	
7,188
	
 
	
 
	
5,714
	
 
	
 
	
4,607
	
 
	
 
	
3,918
	
 
	
 
	
3,313
	
 
	
 
	
2,670
	
 
	
 
	
1,327
	
 
	
 
	
(130
	
)
	
 
	
(1,055
	
)

	
ECONOMIC RESERVE (Canada=GAAP)
	
 
	
(1,169,667
	
)
	
 
	
(724,336
	
)
	
 
	
(320,909
	
)
	
 
	
23,799
	
 
	
 
	
314,929
	
 
	
 
	
559,200
	
 
	
 
	
768,373
	
 
	
 
	
935,398
	
 
	
 
	
1,053,816
	
 
	
 
	
1,128,361
	
 
	
 
	
1,163,020
	
 
	
 
	
1,167,290
	
 
	
 
	
1,142,036
	
 
	
 
	
1,089,372
	
 
	
 
	
1,017,069
	
 
	
 
	
932,326
	
 
	
 
	
844,852
	
 

	
EXCESS RESERVE (STAT LESS ECON)
	
 
	
3,639,656
	
 
	
 
	
3,413,668
	
 
	
 
	
3,007,487
	
 
	
 
	
2,632,674
	
 
	
 
	
2,359,886
	
 
	
 
	
2,104,996
	
 
	
 
	
1,855,446
	
 
	
 
	
1,608,947
	
 
	
 
	
1,377,880
	
 
	
 
	
1,152,892
	
 
	
 
	
935,810
	
 
	
 
	
712,974
	
 
	
 
	
479,580
	
 
	
 
	
260,794
	
 
	
 
	
52,085
	
 
	
 
	
(158,960
	
)
	
 
	
(304,056
	
)

	
EXCESS RESERVE (STAT less ECON Floored at Zero)
	
 
	
2,641,038
	
 
	
 
	
2,847,286
	
 
	
 
	
2,828,290
	
 
	
 
	
2,632,674
	
 
	
 
	
2,359,886
	
 
	
 
	
2,104,996
	
 
	
 
	
1,855,446
	
 
	
 
	
1,608,947
	
 
	
 
	
1,377,880
	
 
	
 
	
1,152,892
	
 
	
 
	
935,810
	
 
	
 
	
712,974
	
 
	
 
	
479,580
	
 
	
 
	
260,794
	
 
	
 
	
52,085
	
 
	
 
	
(158,960
	
)
	
 
	
(304,056
	
)

	
GROSS DEFERRED PREMIUMS
	
 
	
16,793
	
 
	
 
	
15,305
	
 
	
 
	
14,397
	
 
	
 
	
14,198
	
 
	
 
	
14,628
	
 
	
 
	
16,666
	
 
	
 
	
18,916
	
 
	
 
	
21,406
	
 
	
 
	
20,249
	
 
	
 
	
18,618
	
 
	
 
	
19,478
	
 
	
 
	
18,545
	
 
	
 
	
17,103
	
 
	
 
	
15,660
	
 
	
 
	
14,227
	
 
	
 
	
16,208
	
 
	
 
	
15,658
	
 

	
NET DEFERRED PREMIUMS
	
 
	
11,690
	
 
	
 
	
10,964
	
 
	
 
	
10,624
	
 
	
 
	
10,559
	
 
	
 
	
11,291
	
 
	
 
	
12,221
	
 
	
 
	
13,812
	
 
	
 
	
15,733
	
 
	
 
	
15,118
	
 
	
 
	
14,673
	
 
	
 
	
13,937
	
 
	
 
	
13,146
	
 
	
 
	
12,370
	
 
	
 
	
11,579
	
 
	
 
	
11,316
	
 
	
 
	
10,935
	
 
	
 
	
10,255
	
 

	
PV AT 9.00% PROFITS RELEASED
	
 
	
—
	
 
	
 
	
235,451
	
 
	
 
	
604,904
	
 
	
 
	
919,743
	
 
	
 
	
1,136,119
	
 
	
 
	
1,323,257
	
 
	
 
	
1,490,292
	
 
	
 
	
1,642,310
	
 
	
 
	
1,782,898
	
 
	
 
	
1,908,027
	
 
	
 
	
2,018,990
	
 
	
 
	
2,119,672
	
 
	
 
	
2,211,176
	
 
	
 
	
2,290,852
	
 
	
 
	
2,363,584
	
 
	
 
	
2,434,705
	
 
	
 
	
2,487,805
	
 

	
PV AT 11.00% PROFITS RELEASED
	
 
	
—
	
 
	
 
	
231,209
	
 
	
 
	
587,468
	
 
	
 
	
885,593
	
 
	
 
	
1,086,791
	
 
	
 
	
1,257,667
	
 
	
 
	
1,407,438
	
 
	
 
	
1,541,288
	
 
	
 
	
1,662,844
	
 
	
 
	
1,769,085
	
 
	
 
	
1,861,600
	
 
	
 
	
1,944,031
	
 
	
 
	
2,017,598
	
 
	
 
	
2,080,501
	
 
	
 
	
2,136,888
	
 
	
 
	
2,191,032
	
 
	
 
	
2,230,728
	
 

	
PV AT 13.00% PROFITS RELEASED
	
 
	
—
	
 
	
 
	
227,117
	
 
	
 
	
570,876
	
 
	
 
	
853,451
	
 
	
 
	
1,040,778
	
 
	
 
	
1,197,058
	
 
	
 
	
1,331,612
	
 
	
 
	
1,449,733
	
 
	
 
	
1,555,107
	
 
	
 
	
1,645,574
	
 
	
 
	
1,722,960
	
 
	
 
	
1,790,690
	
 
	
 
	
1,850,067
	
 
	
 
	
1,899,938
	
 
	
 
	
1,943,852
	
 
	
 
	
1,985,272
	
 
	
 
	
2,015,103
	
 

	
PV AT 9.00% BOOK PROFITS
	
 
	
9.0
	
%
	
 
	
443,509
	
 
	
 
	
992,151
	
 
	
 
	
1,461,348
	
 
	
 
	
1,811,851
	
 
	
 
	
2,117,288
	
 
	
 
	
2,388,570
	
 
	
 
	
2,635,462
	
 
	
 
	
2,863,515
	
 
	
 
	
3,066,135
	
 
	
 
	
3,245,085
	
 
	
 
	
3,408,645
	
 
	
 
	
3,559,113
	
 
	
 
	
3,689,241
	
 
	
 
	
3,802,988
	
 
	
 
	
3,906,707
	
 
	
 
	
3,983,399
	
 

	
PV AT 11.00% BOOK PROFITS
	
 
	
11.0
	
%
	
 
	
435,518
	
 
	
 
	
964,567
	
 
	
 
	
1,408,856
	
 
	
 
	
1,734,773
	
 
	
 
	
2,013,666
	
 
	
 
	
2,256,910
	
 
	
 
	
2,474,297
	
 
	
 
	
2,671,477
	
 
	
 
	
2,843,511
	
 
	
 
	
2,992,710
	
 
	
 
	
3,126,621
	
 
	
 
	
3,247,593
	
 
	
 
	
3,350,328
	
 
	
 
	
3,438,512
	
 
	
 
	
3,517,473
	
 
	
 
	
3,574,806
	
 

	
PV AT 13.00% BOOK PROFITS
	
 
	
13.0
	
%
	
 
	
427,809
	
 
	
 
	
938,297
	
 
	
 
	
1,359,411
	
 
	
 
	
1,662,859
	
 
	
 
	
1,917,930
	
 
	
 
	
2,136,459
	
 
	
 
	
2,328,301
	
 
	
 
	
2,499,232
	
 
	
 
	
2,645,724
	
 
	
 
	
2,770,523
	
 
	
 
	
2,880,552
	
 
	
 
	
2,978,190
	
 
	
 
	
3,059,641
	
 
	
 
	
3,128,319
	
 
	
 
	
3,188,724
	
 
	
 
	
3,231,809
	
 

	
PV AT 9.00% FEDERAL INCOME TAX
	
 
	
9.0
	
%
	
 
	
208,058
	
 
	
 
	
387,247
	
 
	
 
	
541,605
	
 
	
 
	
675,733
	
 
	
 
	
794,030
	
 
	
 
	
898,277
	
 
	
 
	
993,153
	
 
	
 
	
1,080,617
	
 
	
 
	
1,158,108
	
 
	
 
	
1,226,095
	
 
	
 
	
1,288,973
	
 
	
 
	
1,347,936
	
 
	
 
	
1,398,389
	
 
	
 
	
1,439,404
	
 
	
 
	
1,472,002
	
 
	
 
	
1,495,595
	
 

	
PV AT 11.00% FEDERAL INCOME TAX
	
 
	
11.0
	
%
	
 
	
204,309
	
 
	
 
	
377,099
	
 
	
 
	
523,263
	
 
	
 
	
647,982
	
 
	
 
	
755,999
	
 
	
 
	
849,472
	
 
	
 
	
933,009
	
 
	
 
	
1,008,632
	
 
	
 
	
1,074,426
	
 
	
 
	
1,131,110
	
 
	
 
	
1,182,590
	
 
	
 
	
1,229,995
	
 
	
 
	
1,269,827
	
 
	
 
	
1,301,624
	
 
	
 
	
1,326,441
	
 
	
 
	
1,344,078
	
 

	
PV AT 13.00% FEDERAL INCOME TAX
	
 
	
13.0
	
%
	
 
	
200,693
	
 
	
 
	
367,421
	
 
	
 
	
505,960
	
 
	
 
	
622,081
	
 
	
 
	
720,872
	
 
	
 
	
804,847
	
 
	
 
	
878,568
	
 
	
 
	
944,124
	
 
	
 
	
1,000,150
	
 
	
 
	
1,047,564
	
 
	
 
	
1,089,862
	
 
	
 
	
1,128,124
	
 
	
 
	
1,159,703
	
 
	
 
	
1,184,467
	
 
	
 
	
1,203,452
	
 
	
 
	
1,216,706
	
 

	
Tax Reserve before unamort DAC
	
 
	
3,268,543
	
 
	
 
	
3,397,071
	
 
	
 
	
3,509,892
	
 
	
 
	
3,579,527
	
 
	
 
	
3,601,690
	
 
	
 
	
3,577,890
	
 
	
 
	
3,516,694
	
 
	
 
	
3,403,447
	
 
	
 
	
3,240,220
	
 
	
 
	
3,020,339
	
 
	
 
	
2,759,111
	
 
	
 
	
2,449,469
	
 
	
 
	
2,085,973
	
 
	
 
	
1,715,481
	
 
	
 
	
1,363,658
	
 
	
 
	
1,044,706
	
 
	
 
	
787,833
	
 

	
Capital (Based on 300% RBC (i=5.70%))
	
 
	
437,136
	
 
	
 
	
418,201
	
 
	
 
	
394,906
	
 
	
 
	
375,389
	
 
	
 
	
357,081
	
 
	
 
	
338,860
	
 
	
 
	
323,396
	
 
	
 
	
307,701
	
 
	
 
	
287,637
	
 
	
 
	
266,514
	
 
	
 
	
246,302
	
 
	
 
	
224,221
	
 
	
 
	
199,457
	
 
	
 
	
174,730
	
 
	
 
	
151,246
	
 
	
 
	
129,310
	
 
	
 
	
110,454
	
 

	
Capital: After-Tax int less change (i=5.70%)
	
 
	
 
	
 
	
 
	
35,131
	
 
	
 
	
38,790
	
 
	
 
	
34,148
	
 
	
 
	
32,216
	
 
	
 
	
31,451
	
 
	
 
	
28,019
	
 
	
 
	
27,676
	
 
	
 
	
31,465
	
 
	
 
	
31,780
	
 
	
 
	
30,086
	
 
	
 
	
31,207
	
 
	
 
	
33,072
	
 
	
 
	
32,117
	
 
	
 
	
29,957
	
 
	
 
	
27,540
	
 
	
 
	
23,647
	
 

	
PV's -- Total Existing Business - Primerica
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
9.00
	
%
	
 
	
11.00
	
%
	
 
	
13.00
	
%
	
 
	
15.00
	
% 
	
 
	
20.00
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV PRE-TAX BOOK PROFIT
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
4,213,738
	
 
	
 
	
3,733,770
	
 
	
 
	
3,342,854
	
 
	
 
	
3,019,808
	
 
	
 
	
2,418,748
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV FEDERAL INCOME TAX
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
(1,561,464
	
)
	
 
	
(1,389,651
	
)
	
 
	
(1,248,620
	
)
	
 
	
(1,131,324
	
)
	
 
	
(911,330
	
)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV Capital: After-Tax int less change (i=5.70%) less Init Cap
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
(149,320
	
)
	
 
	
(184,563
	
)
	
 
	
(212,863
	
)
	
 
	
(235,946
	
)
	
 
	
(278,077
	
)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV After-Tax, After Cost of Capital
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
2,502,955
	
 
	
 
	
2,159,557
	
 
	
 
	
1,881,372
	
 
	
 
	
1,652,538
	
 
	
 
	
1,229,342
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

C-10

Milliman

 

 

	
017CIG01\15\0906

From PUCK0906B.XLS
	
Puck(Rev) @06/30/09 - Sens: 7-Year Recapture and PLIC Inforce External Res Financing@28.9% (Preliminary)

Line of Business Projection
	
 
	
10/21/09

3:55 PM
	
 
	
 
	
 
	
 

	
Existing Business at 06/30/2009 (000's)
	
2026
	
 
	
2027
	
 
	
2028
	
 
	
2029
	
 
	
2030
	
 
	
2031
	
 
	
2032
	
 
	
2033
	
 
	
2034
	
 
	
2035
	
 
	
2036
	
 
	
2037
	
 
	
2038
	
 
	
2039
	
 

	
Total Existing Business - Primerica
	
 
	
649,496
	
 
	
 
	
590,069
	
 
	
 
	
534,262
	
 
	
 
	
495,116
	
 
	
 
	
460,955
	
 
	
 
	
437,747
	
 
	
 
	
406,064
	
 
	
 
	
373,430
	
 
	
 
	
344,378
	
 
	
 
	
309,028
	
 
	
 
	
274,257
	
 
	
 
	
241,929
	
 
	
 
	
211,019
	
 
	
 
	
167,698
	
 

	
GROSS PREMIUMS
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
REINSURANCE PREMIUMS (NET OF ALLOWANCES)
	
 
	
(375,317
	
)
	
 
	
(334,015
	
)
	
 
	
(284,308
	
)
	
 
	
(245,132
	
)
	
 
	
(241,065
	
)
	
 
	
(235,611
	
)
	
 
	
(230,966
	
)
	
 
	
(225,874
	
)
	
 
	
(197,590
	
)
	
 
	
(164,572
	
)
	
 
	
(136,893
	
)
	
 
	
(117,511
	
)
	
 
	
(96,795
	
)
	
 
	
(56,345
	
)

	
GROSS INVESTMENT INCOME PLUS FEE INCOME
	
 
	
45,907
	
 
	
 
	
33,570
	
 
	
 
	
23,233
	
 
	
 
	
16,308
	
 
	
 
	
12,332
	
 
	
 
	
10,217
	
 
	
 
	
8,268
	
 
	
 
	
6,110
	
 
	
 
	
4,561
	
 
	
 
	
4,376
	
 
	
 
	
4,471
	
 
	
 
	
4,130
	
 
	
 
	
3,650
	
 
	
 
	
3,780
	
 

	
ACCRUAL OF DISCOUNT
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
AMORTIZATION OF IMR
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INVESTMENT EXPENSE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INCOME LOST ON DEFAULTS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL INCOME
	
 
	
320,086
	
 
	
 
	
289,624
	
 
	
 
	
273,187
	
 
	
 
	
266,292
	
 
	
 
	
232,222
	
 
	
 
	
212,353
	
 
	
 
	
183,366
	
 
	
 
	
153,667
	
 
	
 
	
151,349
	
 
	
 
	
148,832
	
 
	
 
	
141,835
	
 
	
 
	
128,547
	
 
	
 
	
117,874
	
 
	
 
	
115,133
	
 

	
NET SURRENDERS
	
 
	
49,486
	
 
	
 
	
46,906
	
 
	
 
	
45,715
	
 
	
 
	
41,943
	
 
	
 
	
19,798
	
 
	
 
	
11,491
	
 
	
 
	
10,968
	
 
	
 
	
10,313
	
 
	
 
	
13,185
	
 
	
 
	
18,284
	
 
	
 
	
15,823
	
 
	
 
	
12,988
	
 
	
 
	
11,909
	
 
	
 
	
14,743
	
 

	
HEALTH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
DIRECT DEATH BENEFITS
	
 
	
537,953
	
 
	
 
	
482,493
	
 
	
 
	
424,248
	
 
	
 
	
369,732
	
 
	
 
	
331,273
	
 
	
 
	
315,046
	
 
	
 
	
300,856
	
 
	
 
	
287,913
	
 
	
 
	
264,567
	
 
	
 
	
225,017
	
 
	
 
	
191,147
	
 
	
 
	
164,043
	
 
	
 
	
138,668
	
 
	
 
	
110,937
	
 

	
REINSURANCE DEATH BENEFITS
	
 
	
(337,628
	
)
	
 
	
(297,687
	
)
	
 
	
(257,737
	
)
	
 
	
(218,587
	
)
	
 
	
(193,068
	
)
	
 
	
(187,035
	
)
	
 
	
(182,604
	
)
	
 
	
(179,364
	
)
	
 
	
(166,531
	
)
	
 
	
(138,791
	
)
	
 
	
(115,006
	
)
	
 
	
(97,355
	
)
	
 
	
(82,414
	
)
	
 
	
(73,812
	
)

	
ACQUISITION EXPENSES
	
 
	
77
	
 
	
 
	
155
	
 
	
 
	
155
	
 
	
 
	
132
	
 
	
 
	
14
	
 
	
 
	
6
	
 
	
 
	
6
	
 
	
 
	
4
	
 
	
 
	
20
	
 
	
 
	
28
	
 
	
 
	
21
	
 
	
 
	
14
	
 
	
 
	
8
	
 
	
 
	
2
	
 

	
OTHER EXPENSES
	
 
	
38,710
	
 
	
 
	
34,370
	
 
	
 
	
30,087
	
 
	
 
	
26,372
	
 
	
 
	
24,132
	
 
	
 
	
22,738
	
 
	
 
	
21,350
	
 
	
 
	
19,954
	
 
	
 
	
17,996
	
 
	
 
	
15,231
	
 
	
 
	
12,893
	
 
	
 
	
11,088
	
 
	
 
	
9,426
	
 
	
 
	
7,430
	
 

	
NET COMMISSIONS
	
 
	
1,145
	
 
	
 
	
2,284
	
 
	
 
	
2,327
	
 
	
 
	
1,897
	
 
	
 
	
393
	
 
	
 
	
94
	
 
	
 
	
83
	
 
	
 
	
55
	
 
	
 
	
285
	
 
	
 
	
430
	
 
	
 
	
338
	
 
	
 
	
229
	
 
	
 
	
130
	
 
	
 
	
36
	
 

	
COST OF FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INCREASE IN LOADING
	
 
	
(532
	
)
	
 
	
965
	
 
	
 
	
(249
	
)
	
 
	
1,424
	
 
	
 
	
515
	
 
	
 
	
278
	
 
	
 
	
(481
	
)
	
 
	
(1,010
	
)
	
 
	
954
	
 
	
 
	
(359
	
)
	
 
	
(780
	
)
	
 
	
(833
	
)
	
 
	
(867
	
)
	
 
	
(4,428
	
)

	
INCREASE IN RESERVES
	
 
	
(218,608
	
)
	
 
	
(190,978
	
)
	
 
	
(133,027
	
)
	
 
	
(73,058
	
)
	
 
	
(37,454
	
)
	
 
	
(25,756
	
)
	
 
	
(31,630
	
)
	
 
	
(32,964
	
)
	
 
	
(7,191
	
)
	
 
	
(3,101
	
)
	
 
	
(7,580
	
)
	
 
	
(11,044
	
)
	
 
	
(6,573
	
)
	
 
	
(1,518
	
)

	
INCR IN RESERVE FINANCING LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL DISBURSEMENTS
	
 
	
70,602
	
 
	
 
	
78,508
	
 
	
 
	
111,519
	
 
	
 
	
149,854
	
 
	
 
	
145,602
	
 
	
 
	
136,862
	
 
	
 
	
118,547
	
 
	
 
	
104,899
	
 
	
 
	
123,286
	
 
	
 
	
116,739
	
 
	
 
	
96,855
	
 
	
 
	
79,128
	
 
	
 
	
70,286
	
 
	
 
	
53,391
	
 

	
STATUTORY GAIN
	
 
	
249,483
	
 
	
 
	
211,116
	
 
	
 
	
161,668
	
 
	
 
	
116,438
	
 
	
 
	
86,619
	
 
	
 
	
75,492
	
 
	
 
	
64,819
	
 
	
 
	
48,768
	
 
	
 
	
28,063
	
 
	
 
	
32,094
	
 
	
 
	
44,980
	
 
	
 
	
49,419
	
 
	
 
	
47,588
	
 
	
 
	
61,743
	
 

	
CAPITAL GAINS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
GAIN ON CALLS AND ROLLOVER
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS DEFAULT LOSSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS IMR CAPITALIZATION
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
BOOK PROFIT
	
 
	
249,483
	
 
	
 
	
211,116
	
 
	
 
	
161,668
	
 
	
 
	
116,438
	
 
	
 
	
86,619
	
 
	
 
	
75,492
	
 
	
 
	
64,819
	
 
	
 
	
48,768
	
 
	
 
	
28,063
	
 
	
 
	
32,094
	
 
	
 
	
44,980
	
 
	
 
	
49,419
	
 
	
 
	
47,588
	
 
	
 
	
61,743
	
 

	
INCREASE IN SURPLUS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
FEDERAL INCOME TAX
	
 
	
75,571
	
 
	
 
	
62,969
	
 
	
 
	
47,112
	
 
	
 
	
32,612
	
 
	
 
	
22,913
	
 
	
 
	
20,114
	
 
	
 
	
16,991
	
 
	
 
	
11,825
	
 
	
 
	
5,293
	
 
	
 
	
6,990
	
 
	
 
	
11,672
	
 
	
 
	
13,326
	
 
	
 
	
12,865
	
 
	
 
	
18,574
	
 

	
PROFITS RELEASED
	
 
	
173,913
	
 
	
 
	
148,148
	
 
	
 
	
114,556
	
 
	
 
	
83,826
	
 
	
 
	
63,706
	
 
	
 
	
55,378
	
 
	
 
	
47,827
	
 
	
 
	
36,943
	
 
	
 
	
22,770
	
 
	
 
	
25,104
	
 
	
 
	
33,308
	
 
	
 
	
36,092
	
 
	
 
	
34,723
	
 
	
 
	
43,168
	
 

	
STATUTORY RESERVE (GA) (Canada=GAAP)
	
 
	
604,807
	
 
	
 
	
413,829
	
 
	
 
	
280,802
	
 
	
 
	
207,744
	
 
	
 
	
170,289
	
 
	
 
	
144,533
	
 
	
 
	
112,903
	
 
	
 
	
79,939
	
 
	
 
	
72,747
	
 
	
 
	
69,646
	
 
	
 
	
62,067
	
 
	
 
	
51,022
	
 
	
 
	
44,450
	
 
	
 
	
42,932
	
 

	
RESERVE FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL LIABILITY (GA)
	
 
	
595,189
	
 
	
 
	
405,024
	
 
	
 
	
271,852
	
 
	
 
	
197,685
	
 
	
 
	
159,346
	
 
	
 
	
132,828
	
 
	
 
	
102,856
	
 
	
 
	
71,393
	
 
	
 
	
64,646
	
 
	
 
	
62,366
	
 
	
 
	
55,748
	
 
	
 
	
45,780
	
 
	
 
	
40,302
	
 
	
 
	
42,932
	
 

	
SEPARATE ACCOUNT LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TAX RESERVE (GA)
	
 
	
277,235
	
 
	
 
	
118,277
	
 
	
 
	
12,167
	
 
	
 
	
(38,740
	
)
	
 
	
(55,925
	
)
	
 
	
(64,419
	
)
	
 
	
(78,120
	
)
	
 
	
(94,599
	
)
	
 
	
(88,405
	
)
	
 
	
(78,562
	
)
	
 
	
(73,549
	
)
	
 
	
(72,174
	
)
	
 
	
(66,820
	
)
	
 
	
(55,517
	
)

	
INTEREST MAINTENANCE RESERVE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
POLICIES IN FORCE (UNSCALED)
	
 
	
349,647
	
 
	
 
	
296,114
	
 
	
 
	
243,310
	
 
	
 
	
204,781
	
 
	
 
	
186,090
	
 
	
 
	
169,446
	
 
	
 
	
155,309
	
 
	
 
	
141,986
	
 
	
 
	
115,404
	
 
	
 
	
90,459
	
 
	
 
	
73,007
	
 
	
 
	
59,602
	
 
	
 
	
47,510
	
 
	
 
	
6,540
	
 

	
INSURANCE IN FORCE (NET)
	
26,159,667
	
 
	
 
	
21,253,473
	
 
	
17,041,348
	
 
	
13,713,053
	
 
	
 
	
12,312,094
	
 
	
10,983,967
	
 
	
 
	
9,688,315
	
 
	
8,558,122
	
 
	
 
	
7,046,969
	
 
	
 
	
5,741,058
	
 
	
4,773,025
	
 
	
3,570,839
	
 
	
2,717,788
	
 
	
 
	
628,833
	
 

	
CASH VALUE IN FORCE
	
 
	
(1,851
	
)
	
 
	
(2,519
	
)
	
 
	
(3,493
	
)
	
 
	
(4,343
	
)
	
 
	
(4,269
	
)
	
 
	
(3,446
	
)
	
 
	
(1,804
	
)
	
 
	
(486
	
)
	
 
	
(1,283
	
)
	
 
	
(2,262
	
)
	
 
	
(2,257
	
)
	
 
	
(2,017
	
)
	
 
	
(2,042
	
)
	
 
	
(681
	
)

	
ECONOMIC RESERVE (Canada=GAAP)
	
 
	
764,482
	
 
	
 
	
686,162
	
 
	
 
	
622,583
	
 
	
 
	
573,745
	
 
	
 
	
510,245
	
 
	
 
	
441,187
	
 
	
 
	
360,684
	
 
	
 
	
269,504
	
 
	
 
	
192,685
	
 
	
 
	
132,496
	
 
	
 
	
83,817
	
 
	
 
	
40,747
	
 
	
 
	
6,993
	
 
	
 
	
5,589
	
 

	
EXCESS RESERVE (STAT LESS ECON)
	
 
	
(405,365
	
)
	
 
	
(481,734
	
)
	
 
	
(514,221
	
)
	
 
	
(503,656
	
)
	
 
	
(463,717
	
)
	
 
	
(414,384
	
)
	
 
	
(359,663
	
)
	
 
	
(295,942
	
)
	
 
	
(217,645
	
)
	
 
	
(146,321
	
)
	
 
	
(92,847
	
)
	
 
	
(50,759
	
)
	
 
	
(14,141
	
)
	
 
	
1,843
	
 

	
EXCESS RESERVE (STAT less ECON Floored at Zero)
	
 
	
(405,365
	
)
	
 
	
(481,734
	
)
	
 
	
(514,221
	
)
	
 
	
(503,656
	
)
	
 
	
(463,717
	
)
	
 
	
(414,384
	
)
	
 
	
(359,663
	
)
	
 
	
(295,942
	
)
	
 
	
(217,645
	
)
	
 
	
(146,321
	
)
	
 
	
(92,847
	
)
	
 
	
(50,759
	
)
	
 
	
(14,141
	
)
	
 
	
1,843
	
 

	
GROSS DEFERRED PREMIUMS
	
 
	
14,489
	
 
	
 
	
14,641
	
 
	
 
	
14,537
	
 
	
 
	
17,070
	
 
	
 
	
18,470
	
 
	
 
	
19,509
	
 
	
 
	
17,371
	
 
	
 
	
14,859
	
 
	
 
	
15,369
	
 
	
 
	
14,189
	
 
	
 
	
12,447
	
 
	
 
	
10,537
	
 
	
 
	
8,576
	
 
	
 
	
—
	
 

	
NET DEFERRED PREMIUMS
	
 
	
9,618
	
 
	
 
	
8,804
	
 
	
 
	
8,949
	
 
	
 
	
10,059
	
 
	
 
	
10,943
	
 
	
 
	
11,705
	
 
	
 
	
10,047
	
 
	
 
	
8,545
	
 
	
 
	
8,101
	
 
	
 
	
7,280
	
 
	
 
	
6,319
	
 
	
 
	
5,242
	
 
	
 
	
4,148
	
 
	
 
	
—
	
 

	
PV AT 9.00% PROFITS RELEASED
	
 
	
2,527,991
	
 
	
 
	
2,559,398
	
 
	
 
	
2,581,678
	
 
	
 
	
2,596,635
	
 
	
 
	
2,607,063
	
 
	
 
	
2,615,380
	
 
	
 
	
2,621,970
	
 
	
 
	
2,626,640
	
 
	
 
	
2,629,280
	
 
	
 
	
2,631,951
	
 
	
 
	
2,635,202
	
 
	
 
	
2,638,434
	
 
	
 
	
2,641,287
	
 
	
 
	
2,644,541
	
 

	
PV AT 11.00% PROFITS RELEASED
	
 
	
2,260,229
	
 
	
 
	
2,282,869
	
 
	
 
	
2,298,641
	
 
	
 
	
2,309,038
	
 
	
 
	
2,316,157
	
 
	
 
	
2,321,732
	
 
	
 
	
2,326,069
	
 
	
 
	
2,329,088
	
 
	
 
	
2,330,764
	
 
	
 
	
2,332,429
	
 
	
 
	
2,334,419
	
 
	
 
	
2,336,361
	
 
	
 
	
2,338,045
	
 
	
 
	
2,339,930
	
 

	
PV AT 13.00% PROFITS RELEASED
	
 
	
2,036,880
	
 
	
 
	
2,053,296
	
 
	
 
	
2,064,530
	
 
	
 
	
2,071,805
	
 
	
 
	
2,076,697
	
 
	
 
	
2,080,461
	
 
	
 
	
2,083,338
	
 
	
 
	
2,085,304
	
 
	
 
	
2,086,376
	
 
	
 
	
2,087,423
	
 
	
 
	
2,088,652
	
 
	
 
	
2,089,830
	
 
	
 
	
2,090,833
	
 
	
 
	
2,091,936
	
 

	
PV AT 9.00% BOOK PROFITS
	
 
	
4,041,048
	
 
	
 
	
4,085,804
	
 
	
 
	
4,117,246
	
 
	
 
	
4,138,022
	
 
	
 
	
4,152,202
	
 
	
 
	
4,163,539
	
 
	
 
	
4,172,470
	
 
	
 
	
4,178,635
	
 
	
 
	
4,181,889
	
 
	
 
	
4,185,304
	
 
	
 
	
4,189,694
	
 
	
 
	
4,194,119
	
 
	
 
	
4,198,029
	
 
	
 
	
4,202,683
	
 

	
PV AT 11.00% BOOK PROFITS
	
 
	
3,617,127
	
 
	
 
	
3,649,390
	
 
	
 
	
3,671,648
	
 
	
 
	
3,686,090
	
 
	
 
	
3,695,769
	
 
	
 
	
3,703,369
	
 
	
 
	
3,709,247
	
 
	
 
	
3,713,232
	
 
	
 
	
3,715,298
	
 
	
 
	
3,717,426
	
 
	
 
	
3,720,113
	
 
	
 
	
3,722,773
	
 
	
 
	
3,725,080
	
 
	
 
	
3,727,778
	
 

	
PV AT 13.00% BOOK PROFITS
	
 
	
3,263,049
	
 
	
 
	
3,286,443
	
 
	
 
	
3,302,297
	
 
	
 
	
3,312,402
	
 
	
 
	
3,319,054
	
 
	
 
	
3,324,184
	
 
	
 
	
3,328,083
	
 
	
 
	
3,330,679
	
 
	
 
	
3,332,000
	
 
	
 
	
3,333,338
	
 
	
 
	
3,334,997
	
 
	
 
	
3,336,611
	
 
	
 
	
3,337,985
	
 
	
 
	
3,339,564
	
 

	
PV AT 9.00% FEDERAL INCOME TAX
	
 
	
1,513,057
	
 
	
 
	
1,526,406
	
 
	
 
	
1,535,569
	
 
	
 
	
1,541,388
	
 
	
 
	
1,545,139
	
 
	
 
	
1,548,159
	
 
	
 
	
1,550,500
	
 
	
 
	
1,551,995
	
 
	
 
	
1,552,609
	
 
	
 
	
1,553,353
	
 
	
 
	
1,554,492
	
 
	
 
	
1,555,685
	
 
	
 
	
1,556,742
	
 
	
 
	
1,558,142
	
 

	
PV AT 11.00% FEDERAL INCOME TAX
	
 
	
1,356,898
	
 
	
 
	
1,366,521
	
 
	
 
	
1,373,007
	
 
	
 
	
1,377,052
	
 
	
 
	
1,379,612
	
 
	
 
	
1,381,637
	
 
	
 
	
1,383,178
	
 
	
 
	
1,384,144
	
 
	
 
	
1,384,534
	
 
	
 
	
1,384,997
	
 
	
 
	
1,385,695
	
 
	
 
	
1,386,412
	
 
	
 
	
1,387,036
	
 
	
 
	
1,387,847
	
 

	
PV AT 13.00% FEDERAL INCOME TAX
	
 
	
1,226,169
	
 
	
 
	
1,233,146
	
 
	
 
	
1,237,767
	
 
	
 
	
1,240,597
	
 
	
 
	
1,242,356
	
 
	
 
	
1,243,723
	
 
	
 
	
1,244,745
	
 
	
 
	
1,245,375
	
 
	
 
	
1,245,624
	
 
	
 
	
1,245,915
	
 
	
 
	
1,246,346
	
 
	
 
	
1,246,781
	
 
	
 
	
1,247,153
	
 
	
 
	
1,247,627
	
 

	
Tax Reserve before unamort DAC
	
 
	
579,373
	
 
	
 
	
396,794
	
 
	
 
	
268,463
	
 
	
 
	
196,799
	
 
	
 
	
159,159
	
 
	
 
	
132,663
	
 
	
 
	
102,693
	
 
	
 
	
71,211
	
 
	
 
	
64,417
	
 
	
 
	
62,110
	
 
	
 
	
55,481
	
 
	
 
	
45,522
	
 
	
 
	
40,070
	
 
	
 
	
42,930
	
 

	
Capital (Based on 300% RBC (i=5.70%))
	
 
	
93,895
	
 
	
 
	
77,825
	
 
	
 
	
64,497
	
 
	
 
	
55,229
	
 
	
 
	
50,226
	
 
	
 
	
46,344
	
 
	
 
	
41,889
	
 
	
 
	
37,533
	
 
	
 
	
33,358
	
 
	
 
	
29,141
	
 
	
 
	
25,364
	
 
	
 
	
21,435
	
 
	
 
	
18,143
	
 
	
 
	
12,404
	
 

	
Capital: After-Tax init less change (i=5.70%)
	
 
	
20,651
	
 
	
 
	
19,549
	
 
	
 
	
16,211
	
 
	
 
	
11,657
	
 
	
 
	
7,049
	
 
	
 
	
5,743
	
 
	
 
	
6,172
	
 
	
 
	
5,908
	
 
	
 
	
5,566
	
 
	
 
	
5,452
	
 
	
 
	
4,857
	
 
	
 
	
4,869
	
 
	
 
	
4,086
	
 
	
 
	
6,411
	
 

	
PV's — Total Existing Business - Primerica
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV PRE-TAX BOOK PROFIT
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV FEDERAL INCOME TAX
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV Capital. After-Tax int less change (i=5.70%) less Init Cap
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV After-Tax, After Cost of Capital
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

 

 

C-11

Milliman

 

 

	
017CIG01\15\0906
	
 
	
Puck(Rev) @06/30/09 - Sens: 7-Year Recapture and PLIC Inforce External ]
	
 
	
 
	
10/21/09

	
From PUCK0906B.XLS
	
 
	
Line of Business Projection - Present Value of Components of Profi
	
 
	
 
	
03:55 PM

	
 
	
 
	
As of June 30, 2009
	
 
	
 
	
 

	
Existing Business at 06/30/2009 (000's)
	
 
	
9.00%
	
 
	
 
	
11.00%
	
 
	
 
	
13.00%
	
 
	
 
	
15.00%
	
 
	
 
	
 

	
Total Existing Business - Primerica
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
GROSS PREMIUMS
	
 
	
 
	
11,822,025
	
 
	
 
	
 
	
10,461,943
	
 
	
 
	
 
	
9,364,254
	
 
	
 
	
 
	
8,463,159
	
 
	
 
	
 

	
REINSURANCE PREMIUMS (NET OF

   ALLOWANCE:
	
 
	
 
	
(5,303,114
	
)
	
 
	
 
	
(4,612,265
	
)
	
 
	
 
	
(4,060,595
	
)
	
 
	
 
	
(3,612,999
	
)
	
 
	
 

	
GROSS INVESTMENT INCOME 

   PLUS FEE INCOME
	
 
	
 
	
1,457,972
	
 
	
 
	
 
	
1,307,510
	
 
	
 
	
 
	
1,181,609
	
 
	
 
	
 
	
1,075,182
	
 
	
 
	
 

	
ACCRUAL OF DISCOUNT
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
AMORTIZATION OF IMR
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
LESS INVESTMENT EXPENSE
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
LESS INCOME LOST ON DEFAULTS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
TOTAL INCOME
	
 
	
 
	
7,976,884
	
 
	
 
	
 
	
7,157,188
	
 
	
 
	
 
	
6,485,268
	
 
	
 
	
 
	
5,925,342
	
 
	
 
	
 

	
NET SURRENDERS
	
 
	
 
	
519,968
	
 
	
 
	
 
	
453,823
	
 
	
 
	
 
	
401,641
	
 
	
 
	
 
	
359,728
	
 
	
 
	
 

	
HEALTH BENEFITS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
DIRECT DEATH BENEFITS
	
 
	
 
	
7,583,117
	
 
	
 
	
 
	
6,616,861
	
 
	
 
	
 
	
5,844,767
	
 
	
 
	
 
	
5,217,606
	
 
	
 
	
 

	
REINSURANCE DEATH BENEFITS
	
 
	
 
	
(4,566,484
	
)
	
 
	
 
	
(3,971,531
	
)
	
 
	
 
	
(3,496,426
	
)
	
 
	
 
	
(3,110,950
	
)
	
 
	
 

	
ACQUISITION EXPENSES
	
 
	
 
	
12,217
	
 
	
 
	
 
	
11,361
	
 
	
 
	
 
	
10,611
	
 
	
 
	
 
	
9,948
	
 
	
 
	
 

	
OTHER EXPENSES
	
 
	
 
	
751,685
	
 
	
 
	
 
	
668,724
	
 
	
 
	
 
	
601,168
	
 
	
 
	
 
	
545,298
	
 
	
 
	
 

	
NET COMMISSIONS
	
 
	
 
	
232,439
	
 
	
 
	
 
	
216,772
	
 
	
 
	
 
	
202,988
	
 
	
 
	
 
	
190,780
	
 
	
 
	
 

	
COST OF FINANCING
	
 
	
 
	
170,760
	
 
	
 
	
 
	
157,575
	
 
	
 
	
 
	
146,011
	
 
	
 
	
 
	
135,816
	
 
	
 
	
 

	
INCREASE IN LOADING
	
 
	
 
	
(651
	
)
	
 
	
(575
	
)
	
 
	
 
	
(554
	
)
	
 
	
 
	
(559
	
)
	
 
	
 

	
INCREASE IN RESERVES
	
 
	
 
	
(1,429,036
	
)
	
 
	
 
	
(1,153,506
	
)
	
 
	
 
	
(937,035
	
)
	
 
	
 
	
(765,268
	
)
	
 
	
 

	
INCR IN RESERVE FINANCING LIABILITY
	
 
	
 
	
489,130
	
 
	
 
	
 
	
423,915
	
 
	
 
	
 
	
369,242
	
 
	
 
	
 
	
323,135
	
 
	
 
	
 

	
TOTAL DISBURSEMENTS
	
 
	
 
	
3,763,146
	
 
	
 
	
 
	
3,423,418
	
 
	
 
	
 
	
3,142,414
	
 
	
 
	
 
	
2,905,534
	
 
	
 
	
 

	
STATUTORY GAIN
	
 
	
 
	
4,213,738
	
 
	
 
	
 
	
3,733,770
	
 
	
 
	
 
	
3,342,854
	
 
	
 
	
 
	
3,019,808
	
 
	
 
	
 

	
CAPITAL GAINS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
GAIN ON CALLS AND ROLLOVER
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
LESS DEFAULT LOSSES
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
LESS IMR CAPITALIZATION
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
BOOK PROFIT
	
 
	
 
	
4,213,738
	
 
	
 
	
 
	
3,733,770
	
 
	
 
	
 
	
3,342,854
	
 
	
 
	
 
	
3,019,808
	
 
	
 
	
 

	
INCREASE IN SURPLUS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 

	
FEDERAL INCOME TAX
	
 
	
 
	
1,561,464
	
 
	
 
	
 
	
1,389,651
	
 
	
 
	
 
	
1,248,620
	
 
	
 
	
 
	
1,131,324
	
 
	
 
	
 

	
PROFITS RELEASED
	
 
	
 
	
2,652,274
	
 
	
 
	
 
	
2,344,119
	
 
	
 
	
 
	
2,094,235
	
 
	
 
	
 
	
1,888,484
	
 
	
 
	
 

 

 

C-12

Milliman

 

 

	
017CIG0l\l5\0906
	
 
	
 
	
 
	
 
	
Puck(Rev) @06/30/09 - Baseline: Inforce External Res Financing@0.0% (Preliminary)
	
 
	
10/21/09
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
From PUCK0906B.XLS
	
 
	
 
	
 
	
  
	
Line of Business Projection
	
 
	
06:01 PM
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Baseline Production
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Future Business - 10 Years of New Business (000)
	
2009
	
 
	
2010
	
 
	
2011
	
 
	
2012
	
 
	
2013
	
 
	
2014
	
 
	
2015
	
 
	
2016
	
 
	
2017
	
 
	
2018
	
 
	
2019
	
 
	
2020
	
 
	
2021
	
 
	
2022
	
 
	
2023
	
 
	
2024
	
 
	
2025
	
 

	
Primerica Term
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
GROSS PREMIUMS
	
 
	
—
	
 
	
 
	
87,735
	
 
	
 
	
226,780
	
 
	
 
	
356,449
	
 
	
 
	
484,083
	
 
	
 
	
612,872
	
 
	
 
	
745,819
	
 
	
 
	
885,055
	
 
	
 
	
1,031,793
	
 
	
 
	
1,187,309
	
 
	
 
	
1,353,073
	
 
	
 
	
1,349,534
	
 
	
 
	
1,248,360
	
 
	
 
	
1,175,432
	
 
	
 
	
1,117,425
	
 
	
 
	
1,068,917
	
 
	
 
	
1,028,408
	
 

	
REINSURANCE PREMIUMS (NET OF ALLOWANCES
	
 
	
—
	
 
	
 
	
(12,833
	
)
	
 
	
(33,639
	
)
	
 
	
(58,686
	
)
	
 
	
(87,461
	
)
	
 
	
(120,182
	
)
	
 
	
(156,975
	
)
	
 
	
(198,470
	
)
	
 
	
(245,011
	
)
	
 
	
(297,368
	
)
	
 
	
(356,622
	
)
	
 
	
(390,051
	
)
	
 
	
(413,992
	
)
	
 
	
(436,750
	
)
	
 
	
(460,565
	
)
	
 
	
(485,309
	
)
	
 
	
(508,567
	
)

	
GROSS INVESTMENT INCOME PLUS FEE INCOME
	
 
	
—
	
 
	
 
	
(5,516
	
)
	
 
	
(3,705
	
)
	
 
	
696
	
 
	
 
	
7,717
	
 
	
 
	
17,213
	
 
	
 
	
28,912
	
 
	
 
	
42,778
	
 
	
 
	
58,698
	
 
	
 
	
76,509
	
 
	
 
	
96,053
	
 
	
 
	
128,786
	
 
	
 
	
148,451
	
 
	
 
	
164,340
	
 
	
 
	
176,062
	
 
	
 
	
183,553
	
 
	
 
	
186,785
	
 

	
ACCRUAL OF DISCOUNT
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
AMORTIZATION OF IMR
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INVESTMENT EXPENSE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INCOME LOST ON DEFAULTS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL INCOME
	
 
	
—
	
 
	
 
	
69,386
	
 
	
 
	
189,436
	
 
	
 
	
298,459
	
 
	
 
	
404,339
	
 
	
 
	
509,903
	
 
	
 
	
617,756
	
 
	
 
	
729,363
	
 
	
 
	
845,480
	
 
	
 
	
966,450
	
 
	
 
	
1,092,504
	
 
	
 
	
1,088,270
	
 
	
 
	
982,820
	
 
	
 
	
903,022
	
 
	
 
	
832,922
	
 
	
 
	
767,161
	
 
	
 
	
706,626
	
 

	
NET SURRENDERS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
HEALTH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
DIRECT DEATH BENEFITS
	
 
	
—
	
 
	
 
	
15,777
	
 
	
 
	
41,650
	
 
	
 
	
68,111
	
 
	
 
	
98,212
	
 
	
 
	
132,184
	
 
	
 
	
170,233
	
 
	
 
	
212,807
	
 
	
 
	
260,267
	
 
	
 
	
313,188
	
 
	
 
	
372,516
	
 
	
 
	
405,658
	
 
	
 
	
423,028
	
 
	
 
	
445,834
	
 
	
 
	
469,131
	
 
	
 
	
493,074
	
 
	
 
	
520,544
	
 

	
REINSURANCE DEATH BENEFITS
	
 
	
—
	
 
	
 
	
(12,244
	
)
	
 
	
(33,130
	
)
	
 
	
(55,639
	
)
	
 
	
(81,686
	
)
	
 
	
(111,280
	
)
	
 
	
(144,548
	
)
	
 
	
(181,846
	
)
	
 
	
(223,507
	
)
	
 
	
(270,042
	
)
	
 
	
(322,279
	
)
	
 
	
(351,872
	
)
	
 
	
(366,496
	
)
	
 
	
(383,948
	
)
	
 
	
(401,057
	
)
	
 
	
(418,287
	
)
	
 
	
(435,210
	
)

	
ACQUISITION EXPENSES
	
 
	
—
	
 
	
 
	
55,379
	
 
	
 
	
59,255
	
 
	
 
	
63,403
	
 
	
 
	
67,842
	
 
	
 
	
72,590
	
 
	
 
	
78,398
	
 
	
 
	
84,670
	
 
	
 
	
91,443
	
 
	
 
	
98,759
	
 
	
 
	
106,659
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
OTHER EXPENSES
	
 
	
—
	
 
	
 
	
6,045
	
 
	
 
	
15,803
	
 
	
 
	
24,858
	
 
	
 
	
33,785
	
 
	
 
	
42,832
	
 
	
 
	
52,204
	
 
	
 
	
62,049
	
 
	
 
	
72,453
	
 
	
 
	
83,505
	
 
	
 
	
95,306
	
 
	
 
	
95,286
	
 
	
 
	
88,190
	
 
	
 
	
83,307
	
 
	
 
	
79,558
	
 
	
 
	
76,511
	
 
	
 
	
73,895
	
 

	
NET COMMISSIONS
	
 
	
—
	
 
	
 
	
203,504
	
 
	
 
	
242,958
	
 
	
 
	
262,178
	
 
	
 
	
282,306
	
 
	
 
	
303,562
	
 
	
 
	
329,022
	
 
	
 
	
356,750
	
 
	
 
	
386,640
	
 
	
 
	
418,885
	
 
	
 
	
453,713
	
 
	
 
	
68,013
	
 
	
 
	
20,956
	
 
	
 
	
19,891
	
 
	
 
	
15,696
	
 
	
 
	
13,826
	
 
	
 
	
11,722
	
 

	
COST OF FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INCREASE IN LOADING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INCREASE IN RESERVES
	
 
	
—
	
 
	
 
	
1,697
	
 
	
 
	
43,090
	
 
	
 
	
92,514
	
 
	
 
	
138,280
	
 
	
 
	
179,875
	
 
	
 
	
218,951
	
 
	
 
	
255,634
	
 
	
 
	
289,405
	
 
	
 
	
320,422
	
 
	
 
	
348,343
	
 
	
 
	
381,854
	
 
	
 
	
325,334
	
 
	
 
	
246,637
	
 
	
 
	
168,952
	
 
	
 
	
91,496
	
 
	
 
	
21,077
	
 

	
INCR IN RESERVE FINANCING LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL DISBURSEMENTS
	
 
	
—
	
 
	
 
	
270,157
	
 
	
 
	
369,625
	
 
	
 
	
455,427
	
 
	
 
	
538,738
	
 
	
 
	
619,763
	
 
	
 
	
704,260
	
 
	
 
	
790,062
	
 
	
 
	
876,701
	
 
	
 
	
964,716
	
 
	
 
	
1,054,259
	
 
	
 
	
598,940
	
 
	
 
	
491,012
	
 
	
 
	
409,811
	
 
	
 
	
332,280
	
 
	
 
	
256,620
	
 
	
 
	
192,028
	
 

	
STATUTORY GAIN
	
 
	
—
	
 
	
 
	
(200,771
	
)
	
 
	
(180,189
	
)
	
 
	
(156,967
	
)
	
 
	
(134,399
	
)
	
 
	
(109,860
	
)
	
 
	
(86,503
	
)
	
 
	
(60,699
	
)
	
 
	
(31,222
	
)
	
 
	
1,734
	
 
	
 
	
38,245
	
 
	
 
	
489,330
	
 
	
 
	
491,808
	
 
	
 
	
493,210
	
 
	
 
	
500,642
	
 
	
 
	
510,542
	
 
	
 
	
514,598
	
 

	
CAPITAL GAINS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
GAIN ON CALLS AND ROLLOVER
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS DEFAULT LOSSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS IMR CAPITALIZATION
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
BOOK PROFIT
	
 
	
—
	
 
	
 
	
(200,771
	
)
	
 
	
(180,189
	
 
	
 
	
(156,967
	
)
	
 
	
(134,399
	
)
	
 
	
(109,860
	
)
	
 
	
(86,503
	
)
	
 
	
(60,699
	
)
	
 
	
(31,222
	
)
	
 
	
1,734
	
 
	
 
	
38,245
	
 
	
 
	
489,330
	
 
	
 
	
491,808
	
 
	
 
	
493,210
	
 
	
 
	
500,642
	
 
	
 
	
510,542
	
 
	
 
	
514,598
	
 

	
INCREASE IN SURPLUS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
FEDERAL INCOME TAX
	
 
	
—
	
 
	
 
	
(56,264
	
)
	
 
	
(46,585
	
)
	
 
	
(38,604
	
)
	
 
	
(30,329
	
)
	
 
	
(21,014
	
)
	
 
	
(11,432
	
)
	
 
	
(859
	
)
	
 
	
10,980
	
 
	
 
	
23,991
	
 
	
 
	
38,181
	
 
	
 
	
168,238
	
 
	
 
	
165,099
	
 
	
 
	
169,168
	
 
	
 
	
170,413
	
 
	
 
	
173,922
	
 
	
 
	
174,557
	
 

	
PROFITS RELEASED
	
 
	
—
	
 
	
 
	
(144,507
	
)
	
 
	
(133,604
	
)
	
 
	
(118,364
	
)
	
 
	
(104,070
	
)
	
 
	
(88,846
	
)
	
 
	
(75,072
	
)
	
 
	
(59,841
	
)
	
 
	
(42,202
	
)
	
 
	
(22,257
	
)
	
 
	
64
	
 
	
 
	
321,093
	
 
	
 
	
326,710
	
 
	
 
	
326,042
	
 
	
 
	
330,229
	
 
	
 
	
336,620
	
 
	
 
	
340,041
	
 

	
STATUTORY RESERVE (GA) (Canada=GAAP)
	
 
	
—
	
 
	
 
	
1,697
	
 
	
 
	
44,786
	
 
	
 
	
137,301
	
 
	
 
	
275,581
	
 
	
 
	
455,456
	
 
	
 
	
674,407
	
 
	
 
	
930,041
	
 
	
 
	
1,219,446
	
 
	
 
	
1,539,868
	
 
	
 
	
1,888,211
	
 
	
 
	
2,270,065
	
 
	
 
	
2,595,399
	
 
	
 
	
2,842,037
	
 
	
 
	
3,010,989
	
 
	
 
	
3,102,485
	
 
	
 
	
3,123,562
	
 

	
RESERVE FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL LIABILITY (GA)
	
 
	
—
	
 
	
 
	
1,697
	
 
	
 
	
44,786
	
 
	
 
	
137,301
	
 
	
 
	
275,581
	
 
	
 
	
455,456
	
 
	
 
	
674,407
	
 
	
 
	
930,041
	
 
	
 
	
1,219,446
	
 
	
 
	
1,539,868
	
 
	
 
	
1,888,211
	
 
	
 
	
2,270,065
	
 
	
 
	
2,595,399
	
 
	
 
	
2,842,037
	
 
	
 
	
3,010,989
	
 
	
 
	
3,102,485
	
 
	
 
	
3,123,562
	
 

	
SEPARATE ACCOUNT LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TAX RESERVE (GA)
	
 
	
—
	
 
	
 
	
(38,321
	
)
	
 
	
(42,320
	
)
	
 
	
3,523
	
 
	
 
	
94,059
	
 
	
 
	
224,114
	
 
	
 
	
389,224
	
 
	
 
	
586,611
	
 
	
 
	
813,423
	
 
	
 
	
1,067,033
	
 
	
 
	
1,344,532
	
 
	
 
	
1,735,037
	
 
	
 
	
2,080,469
	
 
	
 
	
2,342,693
	
 
	
 
	
2,525,393
	
 
	
 
	
2,630,511
	
 
	
 
	
2,667,451
	
 

	
INTEREST MAINTENANCE RESERVE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
POLICIES IN FORCE (UNSCALED)
	
 
	
—
	
 
	
 
	
176,502
	
 
	
 
	
325,856
	
 
	
 
	
466,403
	
 
	
 
	
604,195
	
 
	
 
	
742,393
	
 
	
 
	
884,955
	
 
	
 
	
1,033,160
	
 
	
 
	
1,188,303
	
 
	
 
	
1,351,747
	
 
	
 
	
1,524,960
	
 
	
 
	
1,337,927
	
 
	
 
	
1,215,630
	
 
	
 
	
1,121,626
	
 
	
 
	
1,044,601
	
 
	
 
	
979,013
	
 
	
 
	
919,285
	
 

	
INSURANCE IN FORCE (NET)
	
 
	
—
	
 
	
7,875,822
	
 
	
 
	
14,810,402
	
 
	
 
	
21,495,369
	
 
	
 
	
28,156,663
	
 
	
 
	
34,920,372
	
 
	
 
	
41,967,737
	
 
	
 
	
49,354,757
	
 
	
 
	
57,136,816
	
 
	
 
	
65,379,333
	
 
	
74,149,576
	
 
	
67,647,445
	
 
	
63,447,349
	
 
	
60,273,708
	
 
	
57,759,208
	
 
	
55,688,557
	
 
	
 
	
54,190,389
	
 

	
CASH VALUE IN FORCE
	
 
	
—
	
 
	
 
	
2,122
	
 
	
 
	
6,058
	
 
	
 
	
9,816
	
 
	
 
	
13,515
	
 
	
 
	
17,232
	
 
	
 
	
21,034
	
 
	
 
	
24,984
	
 
	
 
	
29,116
	
 
	
 
	
33,461
	
 
	
 
	
38,062
	
 
	
 
	
38,384
	
 
	
 
	
35,136
	
 
	
 
	
32,497
	
 
	
 
	
30,274
	
 
	
 
	
28,332
	
 
	
 
	
26,591
	
 

	
ECONOMIC RESERVE (Canada=GAAP)
	
 
	
—
	
 
	
 
	
(281,506
	
)
	
 
	
(531,711
	
)
	
 
	
(739,215)
	
 
	
 
	
(909,981)
	
 
	
 
	
(1,048,685
	
)
	
 
	
(1,162,659
	
)
	
 
	
(1,254,918
	
)
	
 
	
(1,327,629
	
)
	
 
	
(1,382,654)
	
 
	
 
	
(1,421,961
	
)
	
 
	
(857,313
	
)
	
 
	
(337,777
	
)
	
 
	
110,002
	
 
	
 
	
494,479
	
 
	
 
	
821,306
	
 
	
 
	
1,095,873
	
 

	
EXCESS RESERVE (STAT LESS ECON)
	
 
	
—
	
 
	
 
	
283,203
	
 
	
 
	
576,498
	
 
	
 
	
876,516
	
 
	
 
	
1,185,562
	
 
	
 
	
1,504,141
	
 
	
 
	
1,837,066
	
 
	
 
	
2,184,958
	
 
	
 
	
2,547,075
	
 
	
 
	
2,922,522
	
 
	
 
	
3,310,172
	
 
	
 
	
3,127,378
	
 
	
 
	
2,933,176
	
 
	
 
	
2,732,035
	
 
	
 
	
2,516,510
	
 
	
 
	
2,281,178
	
 
	
 
	
2,027,688
	
 

	
EXCESS RESERVE (STAT less ECON Floored at Zero)
	
 
	
—
	
 
	
 
	
1,697
	
 
	
 
	
44,786
	
 
	
 
	
137,301
	
 
	
 
	
275,581
	
 
	
 
	
455,456
	
 
	
 
	
672,030
	
 
	
 
	
907,961
	
 
	
 
	
1,155,762
	
 
	
 
	
1,412,639
	
 
	
 
	
1,675,104
	
 
	
 
	
1,947,666
	
 
	
 
	
2,138,890
	
 
	
 
	
2,228,580
	
 
	
 
	
2,220,417
	
 
	
 
	
2,115,876
	
 
	
 
	
1,930,827
	
 

	
GROSS DEFERRED PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
NET DEFERRED PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
PV AT 9.00% PROFITS RELEASED
	
 
	
—
	
 
	
 
	
(132,576
	
)
	
 
	
(245,027
	
)
	
 
	
(336,426
	
)
	
 
	
(410,151
	
)
	
 
	
(467,895
	
)
	
 
	
(512,658
	
)
	
 
	
(545,393
	
)
	
 
	
(566,572)
	
 
	
 
	
(576,820
	
)
	
 
	
(576,793
	
)
	
 
	
(452,359
	
)
	
 
	
(336,203
	
)
	
 
	
(229,855
	
)
	
 
	
(131,035
	
)
	
 
	
(38,620
	
)
	
 
	
47,026
	
 

	
PV AT 11.00% PROFITS RELEASED
	
 
	
—
	
 
	
 
	
(130,187
	
)
	
 
	
(238,623
	
)
	
 
	
(325,169
	
)
	
 
	
(393,723
	
)
	
 
	
(446,449
	
)
	
 
	
(486,585
	
)
	
 
	
(515,408
	
)
	
 
	
(533,721)
	
 
	
 
	
(542,421
	
)
	
 
	
(542,399
	
)
	
 
	
(440,522
	
)
	
 
	
(347,135
	
)
	
 
	
(263,174
	
)
	
 
	
(186,563
	
)
	
 
	
(116,208
	
)
	
 
	
(52,181
	
)

	
PV AT 13.00% PROFITS RELEASED
	
 
	
—
	
 
	
 
	
(127,883
	
)
	
 
	
(232,514
	
)
	
 
	
(314,546
	
)
	
 
	
(378,374
	
)
	
 
	
(426,596
	
)
	
 
	
(462,654
	
)
	
 
	
(488,090
	
)
	
 
	
(503,965)
	
 
	
 
	
(511,374
	
)
	
 
	
(511,355
	
)
	
 
	
(427,647
	
)
	
 
	
(352,273
	
)
	
 
	
(285,707
	
)
	
 
	
(226,042
	
)
	
 
	
(172,220
	
)
	
 
	
(124,105
	
)

	
PV AT 9.00% BOOK PROFITS
	
 
	
9.0
	
%
	
 
	
(184,194
	
)
	
 
	
(335,855
	
)
	
 
	
(457,063
	
)
	
 
	
(552,274
	
)
	
 
	
(623,675
	
)
	
 
	
(675,254
	
)
	
 
	
(708,459
	
)
	
 
	
(724,128)
	
 
	
 
	
(723,330
	
)
	
 
	
(707,175
	
)
	
 
	
(517,543
	
)
	
 
	
(342,688
	
)
	
 
	
(181,814
	
)
	
 
	
(31,998
	
)
	
 
	
108,165
	
 
	
 
	
237,776
	
 

	
PV AT 11.00% BOOK PROFITS
	
 
	
11.0
	
%
	
 
	
(180,875
	
)
	
 
	
(327,120
	
)
	
 
	
(441,893
	
)
	
 
	
(530,426
	
)
	
 
	
(595,622
	
)
	
 
	
(641,871
	
)
	
 
	
(671,107
	
)
	
 
	
(684,655)
	
 
	
 
	
(683,977
	
)
	
 
	
(670,508
	
)
	
 
	
(515,252
	
)
	
 
	
(374,673
	
)
	
 
	
(247,664
	
)
	
 
	
(131,518
	
)
	
 
	
(24,812
	
)
	
 
	
72,083
	
 

	
PV AT 13.00% BOOK PROFITS
	
 
	
13.0
	
%
	
 
	
(177,674
	
)
	
 
	
(318,788
	
)
	
 
	
(427,574
	
)
	
 
	
(510,003
	
)
	
 
	
(569,631
	
)
	
 
	
(611,180
	
)
	
 
	
(636,981
	
)
	
 
	
(648,725)
	
 
	
 
	
(648,148
	
)
	
 
	
(636,882
	
)
	
 
	
(509,314
	
)
	
 
	
(395,851
	
)
	
 
	
(295,155
	
)
	
 
	
(204,701
	
)
	
 
	
(123,070
	
)
	
 
	
(50,256
	
)

	
PV AT 9.00% FEDERAL INCOME TAX
	
 
	
9.0
	
%
	
 
	
(51,618
	
)
	
 
	
(90,828
	
)
	
 
	
(120,637
	
)
	
 
	
(142,123
	
)
	
 
	
(155,780
	
)
	
 
	
(162,597
	
)
	
 
	
(163,066
	
)
	
 
	
(157,556)
	
 
	
 
	
(146,510
	
)
	
 
	
(130,382
	
)
	
 
	
(65,184
	
)
	
 
	
(6,486
	
)
	
 
	
48,041
	
 
	
 
	
99,037
	
 
	
 
	
146,785
	
 
	
 
	
190,750
	
 

	
PV AT 11.00% FEDERAL INCOME TAX
	
 
	
11.0
	
%
	
 
	
(50,688
	
)
	
 
	
(88,498
	
)
	
 
	
(116,724
	
)
	
 
	
(136,703
	
)
	
 
	
(149,174
	
)
	
 
	
(155,285
	
)
	
 
	
(155,699
	
)
	
 
	
(150,934)
	
 
	
 
	
(141,556
	
)
	
 
	
(128,109
	
)
	
 
	
(74,730
	
)
	
 
	
(27,538
	
)
	
 
	
15,510
	
 
	
 
	
55,045
	
 
	
 
	
91,396
	
 
	
 
	
124,263
	
 

	
PV AT 13.00% FEDERAL INCOME TAX
	
 
	
13.0
	
%
	
 
	
(49,791
	
)
	
 
	
(86,274
	
)
	
 
	
(113,028
	
)
	
 
	
(131,629
	
)
	
 
	
(143,035
	
)
	
 
	
(148,526
	
)
	
 
	
(148,891
	
)
	
 
	
(144,761)
	
 
	
 
	
(136,774
	
)
	
 
	
(125,527
	
)
	
 
	
(81,667
	
)
	
 
	
(43,578
	
)
	
 
	
(9,448
	
)
	
 
	
21,341
	
 
	
 
	
49,150
	
 
	
 
	
73,849
	
 

	
Tax Reserve before unamort DAC
	
 
	
—
	
 
	
 
	
(31,946
	
)
	
 
	
(20,064
	
)
	
 
	
49,217
	
 
	
 
	
169,606
	
 
	
 
	
335,025
	
 
	
 
	
540,314
	
 
	
 
	
782,112
	
 
	
 
	
1,057,024
	
 
	
 
	
1,361,905
	
 
	
 
	
1,693,356
	
 
	
 
	
2,127,455
	
 
	
 
	
2,499,508
	
 
	
 
	
2,775,614
	
 
	
 
	
2,962,021
	
 
	
 
	
3,062,769
	
 
	
 
	
3,089,346
	
 

	
Capital (Based on 300% RBC (i=5.70%))
	
 
	
—
	
 
	
 
	
15,239
	
)
	
 
	
33,622
	
 
	
 
	
52,623
	
 
	
 
	
72,856
	
 
	
 
	
94,545
	
 
	
 
	
118,023
	
 
	
 
	
143,415
	
 
	
 
	
170,776
	
 
	
 
	
200,182
	
 
	
 
	
231,712
	
 
	
 
	
234,855
	
 
	
 
	
233,330
	
 
	
 
	
232,414
	
 
	
 
	
230,874
	
 
	
 
	
228,122
	
 
	
 
	
224,441
	
 

	
Capital: After-Tax int less change (i=5.70%)
	
 
	
—
	
 
	
 
	
(15,239
	
)
	
 
	
(17,819
	
)
	
 
	
(17,755
	
)
	
 
	
(18,283
	
)
	
 
	
(18,990
	
)
	
 
	
(19,975
	
)
	
 
	
(21,019
	
)
	
 
	
(22,048
	
)
	
 
	
(23,079
	
)
	
 
	
(24,114
	
)
	
 
	
5,443
	
 
	
 
	
10,226
	
 
	
 
	
9,561
	
 
	
 
	
10,151
	
 
	
 
	
11,307
	
 
	
 
	
12,133
	
 

	
PV's -- Primerica Term
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
9.00
	
%
	
 
	
11.00
	
%
	
 
	
13.00
	
%
	
 
	
15.00
	
%
	
 
	
20.00
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV PRE-TAX BOOK PROFIT
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
944,817
	
 
	
 
	
567,331
	
 
	
 
	
298,643
	
 
	
 
	
107,076
	
 
	
 
	
(164,290
	
)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV FEDERAL INCOME TAX
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
(426,686
	
)
	
 
	
(289,729
	
)
	
 
	
(190,537
	
)
	
 
	
(118,343
	
)
	
 
	
(11,491
	
)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV Capital: After-Tax int less change (i=5.70%) less Init Cap
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
(67,799
	
)
	
 
	
(73,755
	
)
	
 
	
(75,480
	
)
	
 
	
(74,795
	
)
	
 
	
(68,537
	
)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV After-Tax, After Cost of Capital
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
450,332
	
 
	
 
	
203,847
	
 
	
 
	
32,626
	
 
	
 
	
(86,063
	
)
	
 
	
(244,318
	
)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

 

C-13

Milliman

 

 

	
017CIG01\15\0906
	
Puck(Rev) @06/30/09 - Baseline: Inforce External Res Financing@0.0% (Preliminary)
	
 
	
10/21/09
	
 
	
 
	
 

	
From PUCK0906B.XLS
	
Line of Business Projection
	
 
	
06:01 PM
	
 
	
 
	
 

	
Baseline Production
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Future Business - 10 Years of New Business (000)
	
2026
	
 
	
2027
	
 
	
2028
	
 
	
2029
	
 
	
2030
	
 
	
2031
	
 
	
2032
	
 
	
2033
	
 
	
2034
	
 
	
2035
	
 
	
2036
	
 
	
2037
	
 
	
2038
	
 
	
2039
	
 

	
Primerica Term
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
GROSS PREMIUMS
	
 
	
992,388
	
 
	
 
	
958,794
	
 
	
 
	
926,761
	
 
	
 
	
895,091
	
 
	
 
	
869,045
	
 
	
 
	
842,321
	
 
	
 
	
814,233
	
 
	
 
	
785,027
	
 
	
 
	
755,289
	
 
	
 
	
724,483
	
 
	
 
	
694,620
	
 
	
 
	
665,298
	
 
	
 
	
636,497
	
 
	
 
	
605,926
	
 

	
REINSURANCE PREMIUMS (NET OF ALLOWANCES)
	
 
	
(532,493
	
)
	
 
	
(557,392
	
)
	
 
	
(582,778
	
)
	
 
	
(607,560
	
)
	
 
	
(602,256
	
)
	
 
	
(592,554
	
)
	
 
	
(577,867
	
)
	
 
	
(556,565
	
)
	
 
	
(528,867
	
)
	
 
	
(500,207
	
)
	
 
	
(464,868
	
)
	
 
	
(422,051
	
)
	
 
	
(370,855
	
)
	
 
	
(298,853
	
)

	
GROSS INVESTMENT INCOME PLUS FEE INCOME
	
 
	
186,044
	
 
	
 
	
181,087
	
 
	
 
	
171,775
	
 
	
 
	
157,907
	
 
	
 
	
139,851
	
 
	
 
	
120,494
	
 
	
 
	
100,323
	
 
	
 
	
79,838
	
 
	
 
	
59,591
	
 
	
 
	
40,303
	
 
	
 
	
22,607
	
 
	
 
	
8,005
	
 
	
 
	
(2,394
	
)
	
 
	
(6,678
	
) 

	
ACCRUAL OF DISCOUNT
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
AMORTIZATION OF IMR
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INVESTMENT EXPENSE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INCOME LOST ON DEFAULTS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL INCOME
	
 
	
645,939
	
 
	
 
	
582,489
	
 
	
 
	
515,758
	
 
	
 
	
445,437
	
 
	
 
	
406,640
	
 
	
 
	
370,261
	
 
	
 
	
336,689
	
 
	
 
	
308,300
	
 
	
 
	
286,012
	
 
	
 
	
264,579
	
 
	
 
	
252,358
	
 
	
 
	
251,252
	
 
	
 
	
263,248
	
 
	
 
	
300,395
	
 

	
NET SURRENDERS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
1,277
	
 

	
HEALTH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
DIRECT DEATH BENEFITS
	
 
	
549,274
	
 
	
 
	
578,832
	
 
	
 
	
609,340
	
 
	
 
	
639,938
	
 
	
 
	
664,491
	
 
	
 
	
681,864
	
 
	
 
	
695,257
	
 
	
 
	
703,774
	
 
	
 
	
707,345
	
 
	
 
	
700,712
	
 
	
 
	
688,735
	
 
	
 
	
672,098
	
 
	
 
	
649,452
	
 
	
 
	
603,379
	
 

	
REINSURANCE DEATH BENEFITS
	
 
	
(451,225
	
)
	
 
	
(467,812
	
)
	
 
	
(484,840
	
)
	
 
	
(501,571
	
)
	
 
	
(499,606
	
)
	
 
	
(490,885
	
)
	
 
	
(478,475
	
)
	
 
	
(461,441
	
)
	
 
	
(439,534
	
)
	
 
	
(414,181
	
)
	
 
	
(386,233
	
)
	
 
	
(352,228
	
)
	
 
	
(311,442
	
)
	
 
	
(261,694
	
)

	
ACQUISITION EXPENSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
OTHER EXPENSES
	
 
	
71,546
	
 
	
 
	
69,449
	
 
	
 
	
67,538
	
 
	
 
	
65,727
	
 
	
 
	
63,918
	
 
	
 
	
61,902
	
 
	
 
	
59,763
	
 
	
 
	
57,482
	
 
	
 
	
55,067
	
 
	
 
	
52,700
	
 
	
 
	
50,438
	
 
	
 
	
48,087
	
 
	
 
	
45,624
	
 
	
 
	
42,894
	
 

	
NET COMMISSIONS
	
 
	
9,569
	
 
	
 
	
7,381
	
 
	
 
	
5,100
	
 
	
 
	
2,634
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
COST OF FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INCREASE IN LOADING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INCREASE IN RESERVES
	
 
	
(53,370
	
)
	
 
	
(130,011
	
)
	
 
	
(210,283
	
)
	
 
	
(295,358
	
)
	
 
	
(319,043
	
)
	
 
	
(335,360
	
)
	
 
	
(343,788
	
)
	
 
	
(342,672
	
)
	
 
	
(329,123
	
)
	
 
	
(306,347
	
)
	
 
	
(255,412
	
)
	
 
	
(185,799
	
)
	
 
	
(94,770
	
)
	
 
	
37,332
	
 

	
INCR IN RESERVE FINANCING LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL DISBURSEMENTS
	
 
	
125,795
	
 
	
 
	
57,839
	
 
	
 
	
(13,145
	
)
	
 
	
(88,631
	
)
	
 
	
(90,240
	
)
	
 
	
(82,478
	
)
	
 
	
(67,242
	
)
	
 
	
(42,856
	
)
	
 
	
(6,244)
	
 
	
 
	
32,885
	
 
	
 
	
97,529
	
 
	
 
	
182,158
	
 
	
 
	
288,865
	
 
	
 
	
423,188
	
 

	
STATUTORY GAIN
	
 
	
520,144
	
 
	
 
	
524,650
	
 
	
 
	
528,903
	
 
	
 
	
534,069
	
 
	
 
	
496,880
	
 
	
 
	
452,740
	
 
	
 
	
403,930
	
 
	
 
	
351,156
	
 
	
 
	
292,257
	
 
	
 
	
231,694
	
 
	
 
	
154,830
	
 
	
 
	
69,094
	
 
	
 
	
(25,617
	
)
	
 
	
(122,793
	
) 

	
CAPITAL GAINS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
GAIN ON CALLS AND ROLLOVER
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS DEFAULT LOSSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS IMR CAPITALIZATION
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
BOOK PROFIT
	
 
	
520,144
	
 
	
 
	
524,650
	
 
	
 
	
528,903
	
 
	
 
	
534,069
	
 
	
 
	
496,880
	
 
	
 
	
452,740
	
 
	
 
	
403,930
	
 
	
 
	
351,156
	
 
	
 
	
292,257
	
 
	
 
	
231,694
	
 
	
 
	
154,830
	
 
	
 
	
69,094
	
 
	
 
	
(25,617
	
)
	
 
	
(122,793
	
) 

	
INCREASE IN SURPLUS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
FEDERAL INCOME TAX
	
 
	
175,594
	
 
	
 
	
176,424
	
 
	
 
	
177,407
	
 
	
 
	
179,024
	
 
	
 
	
167,121
	
 
	
 
	
152,448
	
 
	
 
	
135,876
	
 
	
 
	
117,803
	
 
	
 
	
97,535
	
 
	
 
	
76,546
	
 
	
 
	
49,971
	
 
	
 
	
20,341
	
 
	
 
	
(12,370
	
)
	
 
	
(43,863
	
) 

	
PROFITS RELEASED
	
 
	
344,550
	
 
	
 
	
348,227
	
 
	
 
	
351,496
	
 
	
 
	
355,045
	
 
	
 
	
329,758
	
 
	
 
	
300,292
	
 
	
 
	
268,054
	
 
	
 
	
233,353
	
 
	
 
	
194,722
	
 
	
 
	
155,149
	
 
	
 
	
104,859
	
 
	
 
	
48,753
	
 
	
 
	
(13,247
	
)
	
 
	
(78,930
	
) 

	
STATUTORY RESERVE (GA) (Canada=GAAP)
	
 
	
3,070,192
	
 
	
 
	
2,940,180
	
 
	
 
	
2,729,897
	
 
	
 
	
2,434,538
	
 
	
 
	
2,115,495
	
 
	
 
	
1,780,135
	
 
	
 
	
1,436,347
	
 
	
 
	
1,093,676
	
 
	
 
	
764,553
	
 
	
 
	
458,206
	
 
	
 
	
202,795
	
 
	
 
	
16,995
	
 
	
 
	
(77,775
	
)
	
 
	
(40,443
	
) 

	
RESERVE FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL LIABILITY (GA)
	
 
	
3,070,192
	
 
	
 
	
2,940,180
	
 
	
 
	
2,729,897
	
 
	
 
	
2,434,538
	
 
	
 
	
2,115,495
	
 
	
 
	
1,780,135
	
 
	
 
	
1,436,347
	
 
	
 
	
1,093,676
	
 
	
 
	
764,553
	
 
	
 
	
458,206
	
 
	
 
	
202,795
	
 
	
 
	
16,995
	
 
	
 
	
(77,775
	
)
	
 
	
(40,443
	
) 

	
SEPARATE ACCOUNT LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TAX RESERVE (GA)
	
 
	
2,632,527
	
 
	
 
	
2,523,099
	
 
	
 
	
2,334,842
	
 
	
 
	
2,062,056
	
 
	
 
	
1,762,403
	
 
	
 
	
1,444,218
	
 
	
 
	
1,116,143
	
 
	
 
	
788,047
	
 
	
 
	
472,509
	
 
	
 
	
179,154
	
 
	
 
	
(64,202
	
)
	
 
	
(239,025
	
)
	
 
	
(324,069
	
)
	
 
	
(284,207
	
) 

	
INTEREST MAINTENANCE RESERVE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
POLICIES IN FORCE (UNSCALED)
	
 
	
866,154
	
 
	
 
	
818,273
	
 
	
 
	
774,374
	
 
	
 
	
733,053
	
 
	
 
	
691,844
	
 
	
 
	
651,026
	
 
	
 
	
610,141
	
 
	
 
	
568,931
	
 
	
 
	
527,312
	
 
	
 
	
491,149
	
 
	
 
	
455,183
	
 
	
 
	
418,967
	
 
	
 
	
382,247
	
 
	
 
	
325,504
	
 

	
INSURANCE IN FORCE (NET)
	
 
	
52,878,891
	
 
	
 
	
51,737,194
	
 
	
 
	
50,738,940
	
 
	
 
	
49,842,996
	
 
	
 
	
49,253,923
	
 
	
 
	
48,585,599
	
 
	
 
	
47,788,710
	
 
	
46,920,603
	
 
	
46,032,503
	
 
	
44,320,455
	
 
	
42,781,710
	
 
	
41,287,209
	
 
	
39,832,045
	
 
	
 
	
36,813,806
	
 

	
CASH VALUE IN FORCE
	
 
	
24,960
	
 
	
 
	
23,438
	
 
	
 
	
22,004
	
 
	
 
	
20,616
	
 
	
 
	
20,229
	
 
	
 
	
19,862
	
 
	
 
	
19,516
	
 
	
 
	
19,167
	
 
	
 
	
18,823
	
 
	
 
	
19,009
	
 
	
 
	
19,350
	
 
	
 
	
19,841
	
 
	
 
	
20,450
	
 
	
 
	
19,672
	
 

	
ECONOMIC RESERVE (Canada=GAAP)
	
 
	
1,318,759
	
 
	
 
	
1,489,742
	
 
	
 
	
1,607,210
	
 
	
 
	
1,668,825
	
 
	
 
	
1,698,435
	
 
	
 
	
1,695,460
	
 
	
 
	
1,662,308
	
 
	
 
	
1,602,721
	
 
	
 
	
1,519,988
	
 
	
 
	
1,418,842
	
 
	
 
	
1,308,112
	
 
	
 
	
1,193,845
	
 
	
 
	
1,083,120
	
 
	
 
	
985,562
	
 

	
EXCESS RESERVE (STAT LESS ECON)
	
 
	
1,751,433
	
 
	
 
	
1,450,438
	
 
	
 
	
1,122,687
	
 
	
 
	
765,714
	
 
	
 
	
417,060
	
 
	
 
	
84,675
	
 
	
 
	
(225,960
	
)
	
 
	
(509,045
	
)
	
 
	
(755,435
	
)
	
 
	
(960,636
	
)
	
 
	
(1,105,317
	
)
	
 
	
(1,176,850
	
)
	
 
	
(1,160,894
	
)
	
 
	
(1,026,004
	
) 

	
EXCESS RESERVE (STAT less ECON Floored at Zero)
	
 
	
1,695,517
	
 
	
 
	
1,421,530
	
 
	
 
	
1,110,281
	
 
	
 
	
759,304
	
 
	
 
	
410,180
	
 
	
 
	
77,290
	
 
	
 
	
(233,888
	
)
	
 
	
(517,555
	
)
	
 
	
(761,428
	
)
	
 
	
(967,109
	
)
	
 
	
(1,112,308
	
)
	
 
	
(1,184,400
	
)
	
 
	
(1,176,626
	
)
	
 
	
(1,034,113
	
) 

	
GROSS DEFERRED PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
NET DEFERRED PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
PV AT 9.00% PROFITS RELEASED
	
 
	
126,642
	
 
	
 
	
200,464
	
 
	
 
	
268,826
	
 
	
 
	
332,177
	
 
	
 
	
386,158
	
 
	
 
	
431,257
	
 
	
 
	
468,190
	
 
	
 
	
497,686
	
 
	
 
	
520,268
	
 
	
 
	
536,775
	
 
	
 
	
547,010
	
 
	
 
	
551,375
	
 
	
 
	
550,287
	
 
	
 
	
544,338
	
 

	
PV AT 11.00% PROFITS RELEASED
	
 
	
6,266
	
 
	
 
	
59,483
	
 
	
 
	
107,876
	
 
	
 
	
151,914
	
 
	
 
	
188,762
	
 
	
 
	
218,992
	
 
	
 
	
243,302
	
 
	
 
	
262,368
	
 
	
 
	
276,701
	
 
	
 
	
286,990
	
 
	
 
	
293,254
	
 
	
 
	
295,878
	
 
	
 
	
295,236
	
 
	
 
	
291,788
	
 

	
PV AT 13.00% PROFITS RELEASED
	
 
	
(80,962)
	
 
	
 
	
(42,374
	
)
	
 
	
(7,905)
	
 
	
 
	
22,907
	
 
	
 
	
48,232
	
 
	
 
	
68,641
	
 
	
 
	
84,763
	
 
	
 
	
97,183
	
 
	
 
	
106,355
	
 
	
 
	
112,822
	
 
	
 
	
116,690
	
 
	
 
	
118,281
	
 
	
 
	
117,899
	
 
	
 
	
115,881
	
 

	
PV AT 9.00% BOOK PROFITS
	
 
	
357,968
	
 
	
 
	
469,190
	
 
	
 
	
572,056
	
 
	
 
	
667,351
	
 
	
 
	
748,689
	
 
	
 
	
816,682
	
 
	
 
	
872,336
	
 
	
 
	
916,724
	
 
	
 
	
950,617
	
 
	
 
	
975,267
	
 
	
 
	
990,380
	
 
	
 
	
996,567
	
 
	
 
	
994,462
	
 
	
 
	
985,207
	
 

	
PV AT 11.00% BOOK PROFITS
	
 
	
160,316
	
 
	
 
	
240,494
	
 
	
 
	
313,312
	
 
	
 
	
379,555
	
 
	
 
	
435,077
	
 
	
 
	
480,654
	
 
	
 
	
517,288
	
 
	
 
	
545,979
	
 
	
 
	
567,491
	
 
	
 
	
582,856
	
 
	
 
	
592,106
	
 
	
 
	
595,824
	
 
	
 
	
594,582
	
 
	
 
	
589,218
	
 

	
PV AT 13.00% BOOK PROFITS
	
 
	
14,875
	
 
	
 
	
73,013
	
 
	
 
	
124,879
	
 
	
 
	
171,227
	
 
	
 
	
209,386
	
 
	
 
	
240,156
	
 
	
 
	
264,450
	
 
	
 
	
283,141
	
 
	
 
	
296,906
	
 
	
 
	
306,564
	
 
	
 
	
312,275
	
 
	
 
	
314,531
	
 
	
 
	
313,791
	
 
	
 
	
310,652
	
 

	
PV AT 9.00% FEDERAL INCOME TAX
	
 
	
231,326
	
 
	
 
	
268,726
	
 
	
 
	
303,230
	
 
	
 
	
335,173
	
 
	
 
	
362,531
	
 
	
 
	
385,426
	
 
	
 
	
404,147
	
 
	
 
	
419,038
	
 
	
 
	
430,349
	
 
	
 
	
438,493
	
 
	
 
	
443,370
	
 
	
 
	
445,192
	
 
	
 
	
444,175
	
 
	
 
	
440,869
	
 

	
PV AT 11.00% FEDERAL INCOME TAX
	
 
	
154,050
	
 
	
 
	
181,011
	
 
	
 
	
205,436
	
 
	
 
	
227,641
	
 
	
 
	
246,316
	
 
	
 
	
261,662
	
 
	
 
	
273,985
	
 
	
 
	
283,611
	
 
	
 
	
290,790
	
 
	
 
	
295,866
	
 
	
 
	
298,851
	
 
	
 
	
299,946
	
 
	
 
	
299,346
	
 
	
 
	
297,430
	
 

	
PV AT 13.00% FEDERAL INCOME TAX
	
 
	
95,837
	
 
	
 
	
115,386
	
 
	
 
	
132,784
	
 
	
 
	
148,320
	
 
	
 
	
161,154
	
 
	
 
	
171,515
	
 
	
 
	
179,687
	
 
	
 
	
185,958
	
 
	
 
	
190,552
	
 
	
 
	
193,742
	
 
	
 
	
195,586
	
 
	
 
	
196,250
	
 
	
 
	
195,892
	
 
	
 
	
194,771
	
 

	
Tax Reserve before unamort DAC
	
 
	
3,039,659
	
 
	
 
	
2,912,620
	
 
	
 
	
2,705,459
	
 
	
 
	
2,414,026
	
 
	
 
	
2,098,114
	
 
	
 
	
1,765,558
	
 
	
 
	
1,424,466
	
 
	
 
	
1,084,420
	
 
	
 
	
757,798
	
 
	
 
	
453,754
	
 
	
 
	
200,334
	
 
	
 
	
16,058
	
 
	
 
	
(77,833
	
)
	
 
	
(45,640
	
)

	
Capital (Based on 300% RBC (i=5.70%))
	
 
	
219,013
	
 
	
 
	
211,628
	
 
	
 
	
202,089
	
 
	
 
	
190,128
	
 
	
 
	
178,175
	
 
	
 
	
165,588
	
 
	
 
	
152,503
	
 
	
 
	
139,294
	
 
	
 
	
126,438
	
 
	
 
	
113,169
	
 
	
 
	
101,715
	
 
	
 
	
92,454
	
 
	
 
	
86,026
	
 
	
 
	
81,518
	
 

	
Capital: After-Tax int less change (i=5.70%)
	
 
	
13,743
	
 
	
 
	
15,500
	
 
	
 
	
17,380
	
 
	
 
	
19,448
	
 
	
 
	
18,997
	
 
	
 
	
19,188
	
 
	
 
	
19,221
	
 
	
 
	
18,859
	
 
	
 
	
18,017
	
 
	
 
	
17,954
	
 
	
 
	
15,647
	
 
	
 
	
13,029
	
 
	
 
	
9,853
	
 
	
 
	
7,696
	
 

	
PV's -- Primerica Term
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV PRE-TAX BOOK PROFIT
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV FEDERAL INCOME TAX
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV Capital: After-Tax int less change (i=5.70%) less Init Cap
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV After-Tax, After Cost of Capital
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

 

 

C-14

Milliman

 

	
017CIG01\15\0906
	
 
	
Puck(Rev) @06/30/09 - Baseline: Inforce External Res Financing@0.0% (Preliminary)
	
 
	
10/21/09
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
From PUCK0906B.XLS
	
Line of Business Projection
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
06:01 PM
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Baseline Production
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Future Business - 10 Years of New Business (000)
	
2009
	
 
	
2010
	
 
	
2011
	
 
	
2012
	
 
	
2013
	
 
	
2014
	
 
	
2015
	
 
	
2016
	
 
	
2017
	
 
	
2018
	
 
	
2019
	
 
	
2020
	
 
	
2021
	
 
	
2022
	
 
	
2023
	
  
	
2024
	
  
	
2025
	
 

	
Primerica Waiver of Premium
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
GROSS PREMIUMS
	
 
	
—
	
 
	
 
	
2,193
	
 
	
 
	
5,669
	
 
	
 
	
8,911
	
 
	
 
	
12,102
	
 
	
 
	
15,322
	
 
	
 
	
18,645
	
 
	
 
	
22,126
	
 
	
 
	
25,795
	
 
	
 
	
29,683
	
 
	
 
	
33,827
	
 
	
 
	
33,738
	
 
	
 
	
31,209
	
 
	
 
	
29,386
	
 
	
27,936
	
 
	
26,723
	
 
	
25,710
	
 

	
REINSURANCE PREMIUMS (NET OF 

ALLOWANCES:
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
GROSS INVESTMENT INCOME PLUS FEE INCOME
	
 
	
—
	
 
	
 
	
16
	
 
	
 
	
40
	
 
	
 
	
63
	
 
	
 
	
86
	
 
	
 
	
109
	
 
	
 
	
133
	
 
	
 
	
158
	
 
	
 
	
184
	
 
	
 
	
211
	
 
	
 
	
241
	
 
	
 
	
240
	
 
	
 
	
222
	
 
	
 
	
209
	
 
	
199
	
 
	
190
	
 
	
183
	
 

	
ACCRUAL OF DISCOUNT
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
AMORTIZATION OF IMR
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
LESS INVESTMENT EXPENSE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
LESS INCOME LOST ON DEFAULTS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
TOTAL INCOME
	
 
	
—
	
 
	
 
	
2,209
	
 
	
 
	
5,710
	
 
	
 
	
8,975
	
 
	
 
	
12,188
	
 
	
 
	
15,431
	
 
	
 
	
18,778
	
 
	
 
	
22,284
	
 
	
 
	
25,979
	
 
	
 
	
29,894
	
 
	
 
	
34,068
	
 
	
 
	
33,979
	
 
	
 
	
31,431
	
 
	
 
	
29,595
	
 
	
28,135
	
 
	
26,913
	
 
	
25,893
	
 

	
NET SURRENDERS
	
 
	
—
	
 
	
 
	
1,601
	
 
	
 
	
4,139
	
 
	
 
	
6,505
	
 
	
 
	
8,835
	
 
	
 
	
11,185
	
 
	
 
	
13,611
	
 
	
 
	
16,152
	
 
	
 
	
18,830
	
 
	
 
	
21,668
	
 
	
 
	
24,694
	
 
	
 
	
24,629
	
 
	
 
	
22,783
	
 
	
 
	
21,452
	
 
	
20,393
	
 
	
19,508
	
 
	
18,768
	
 

	
HEALTH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
DIRECT DEATH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
REINSURANCE DEATH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
ACQUISITION EXPENSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
OTHER EXPENSES
	
 
	
—
	
 
	
 
	
44
	
 
	
 
	
113
	
 
	
 
	
178
	
 
	
 
	
242
	
 
	
 
	
306
	
 
	
 
	
373
	
 
	
 
	
443
	
 
	
 
	
516
	
 
	
 
	
594
	
 
	
 
	
677
	
 
	
 
	
675
	
 
	
 
	
624
	
 
	
 
	
588
	
 
	
559
	
 
	
534
	
 
	
514
	
 

	
NET COMMISSIONS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
COST OF FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
INCREASE IN LOADING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
INCREASE IN RESERVES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
INCR IN RESERVE FINANCING LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
TOTAL DISBURSEMENTS
	
 
	
—
	
 
	
 
	
1,645
	
 
	
 
	
4,252
	
 
	
 
	
6,683
	
 
	
 
	
9,077
	
 
	
 
	
11,491
	
 
	
 
	
13,984
	
 
	
 
	
16,595
	
 
	
 
	
19,346
	
 
	
 
	
22,262
	
 
	
 
	
25,370
	
 
	
 
	
25,304
	
 
	
 
	
23,407
	
 
	
 
	
22,039
	
 
	
20,952
	
 
	
20,042
	
 
	
19,283
	
 

	
STATUTORY GAIN
	
 
	
—
	
 
	
 
	
564
	
 
	
 
	
1,458
	
 
	
 
	
2,291
	
 
	
 
	
3,112
	
 
	
 
	
3,940
	
 
	
 
	
4,794
	
 
	
 
	
5,689
	
 
	
 
	
6,632
	
 
	
 
	
7,632
	
 
	
 
	
8,698
	
 
	
 
	
8,675
	
 
	
 
	
8,025
	
 
	
 
	
7,556
	
 
	
7,183
	
 
	
6,871
	
 
	
6,611
	
 

	
CAPITAL GAINS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
GAIN ON CALLS AND ROLLOVER
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
LESS DEFAULT LOSSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
LESS IMR CAPITALIZATION
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
BOOK PROFIT
	
 
	
—
	
 
	
 
	
564
	
 
	
 
	
1,458
	
 
	
 
	
2,291
	
 
	
 
	
3,112
	
 
	
 
	
3,940
	
 
	
 
	
4,794
	
 
	
 
	
5,689
	
 
	
 
	
6,632
	
 
	
 
	
7,632
	
 
	
 
	
8,698
	
 
	
 
	
8,675
	
 
	
 
	
8,025
	
 
	
 
	
7,556
	
 
	
7,183
	
 
	
6,871
	
 
	
6,611
	
 

	
INCREASE IN SURPLUS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
FEDERAL INCOME TAX
	
 
	
—
	
 
	
 
	
254
	
 
	
 
	
649
	
 
	
 
	
1,009
	
 
	
 
	
1,354
	
 
	
 
	
1,693
	
 
	
 
	
2,036
	
 
	
 
	
2,388
	
 
	
 
	
2,753
	
 
	
 
	
3,133
	
 
	
 
	
3,532
	
 
	
 
	
3,433
	
 
	
 
	
3,061
	
 
	
 
	
2,785
	
 
	
2,567
	
 
	
2,388
	
 
	
2,245
	
 

	
PROFITS RELEASED
	
 
	
—
	
 
	
 
	
310
	
 
	
 
	
808
	
 
	
 
	
1,282
	
 
	
 
	
1,758
	
 
	
 
	
2,246
	
 
	
 
	
2,758
	
 
	
 
	
3,301
	
 
	
 
	
3,880
	
 
	
 
	
4,499
	
 
	
 
	
5,166
	
 
	
 
	
5,242
	
 
	
 
	
4,964
	
 
	
 
	
4,770
	
 
	
4,616
	
 
	
4,483
	
 
	
4,366
	
 

	
STATUTORY RESERVE (GA) (Canada=GAAP)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
RESERVE FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
TOTAL LIABILITY (GA)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
SEPARATE ACCOUNT LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
TAX RESERVE (GA)
	
 
	
—
	
 
	
 
	
(160
	
)
	
 
	
(558
	
)
	
 
	
(1,150
	
)
	
 
	
(1,906
	
)
	
 
	
(2,804
	
)
	
 
	
(3,828
	
)
	
 
	
(4,962
	
)
	
 
	
(6,195
	
)
	
 
	
(7,513
	
)
	
 
	
(8,906
	
)
	
 
	
(10,041
	
)
	
 
	
(10,761
	
)
	
 
	
(11,163
	
)
	
(11,314
	
)
	
(11,267
	
)
	
(11,071
	
)

	
INTEREST MAINTENANCE RESERVE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
POLICIES IN FORCE (UNSCALED)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
INSURANCE IN FORCE (NET)
	
 
	
—
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
CASH VALUE IN FORCE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
ECONOMIC RESERVE (Canada=GAAP)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
EXCESS RESERVE (STAT LESS ECON)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
EXCESS RESERVE (STAT less ECON Floored at Zero)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
GROSS DEFERRED PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
NET DEFERRED PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
PV AT 9.00% PROFITS RELEASED
	
 
	
—
	
 
	
 
	
285
	
 
	
 
	
965
	
 
	
 
	
1,955
	
 
	
 
	
3,201
	
 
	
 
	
4,661
	
 
	
 
	
6,305
	
 
	
 
	
8,111
	
 
	
 
	
10,058
	
 
	
 
	
12,130
	
 
	
 
	
14,312
	
 
	
 
	
16,343
	
 
	
 
	
18,108
	
 
	
 
	
19,664
	
 
	
21,045
	
 
	
22,276
	
 
	
23,376
	
 

	
PV AT 11.00% PROFITS RELEASED
	
 
	
—
	
 
	
 
	
280
	
 
	
 
	
936
	
 
	
 
	
1,873
	
 
	
 
	
3,031
	
 
	
 
	
4,364
	
 
	
 
	
5,839
	
 
	
 
	
7,429
	
 
	
 
	
9,112
	
 
	
 
	
10,871
	
 
	
 
	
12,691
	
 
	
 
	
14,354
	
 
	
 
	
15,773
	
 
	
 
	
17,001
	
 
	
18,072
	
 
	
19,009
	
 
	
19,831
	
 

	
PV AT 13.00% PROFITS RELEASED
	
 
	
—
	
 
	
 
	
275
	
 
	
 
	
908
	
 
	
 
	
1,796
	
 
	
 
	
2,875
	
 
	
 
	
4,094
	
 
	
 
	
5,419
	
 
	
 
	
6,822
	
 
	
 
	
8,281
	
 
	
 
	
9,779
	
 
	
 
	
11,301
	
 
	
 
	
12,667
	
 
	
 
	
13,812
	
 
	
 
	
14,786
	
 
	
15,620
	
 
	
16,337
	
 
	
16,955
	
 

	
PV AT 9.00% BOOK PROFITS
	
 
	
9.0
	
%
	
 
	
517
	
 
	
 
	
1,744
	
 
	
 
	
3,514
	
 
	
 
	
5,718
	
 
	
 
	
8,279
	
 
	
 
	
11,137
	
 
	
 
	
14,249
	
 
	
 
	
17,578
	
 
	
 
	
21,092
	
 
	
 
	
24,766
	
 
	
 
	
28,128
	
 
	
 
	
30,981
	
 
	
 
	
33,446
	
 
	
35,595
	
 
	
37,481
	
 
	
39,146
	
 

	
PV AT 11.00% BOOK PROFITS
	
 
	
11.0
	
%
	
 
	
508
	
 
	
 
	
1,691
	
 
	
 
	
3,367
	
 
	
 
	
5,416
	
 
	
 
	
7,754
	
 
	
 
	
10,318
	
 
	
 
	
13,058
	
 
	
 
	
15,936
	
 
	
 
	
18,919
	
 
	
 
	
21,983
	
 
	
 
	
24,735
	
 
	
 
	
27,029
	
 
	
 
	
28,975
	
 
	
30,641
	
 
	
32,077
	
 
	
33,322
	
 

	
PV AT 13.00% BOOK PROFITS
	
 
	
13.0
	
%
	
 
	
499
	
 
	
 
	
1,641
	
 
	
 
	
3,229
	
 
	
 
	
5,137
	
 
	
 
	
7,275
	
 
	
 
	
9,578
	
 
	
 
	
11,997
	
 
	
 
	
14,491
	
 
	
 
	
17,032
	
 
	
 
	
19,594
	
 
	
 
	
21,856
	
 
	
 
	
23,707
	
 
	
 
	
25,250
	
 
	
26,548
	
 
	
27,646
	
 
	
28,582
	
 

	
PV AT 9.00% FEDERAL INCOME TAX
	
 
	
9.0
	
%
	
 
	
233
	
 
	
 
	
779
	
 
	
 
	
1,558
	
 
	
 
	
2,517
	
 
	
 
	
3,618
	
 
	
 
	
4,832
	
 
	
 
	
6,139
	
 
	
 
	
7,520
	
 
	
 
	
8,962
	
 
	
 
	
10,454
	
 
	
 
	
11,785
	
 
	
 
	
12,873
	
 
	
 
	
13,782
	
 
	
14,550
	
 
	
15,205
	
 
	
15,771
	
 

	
PV AT 11.00% FEDERAL INCOME TAX
	
 
	
11.0
	
%
	
 
	
228
	
 
	
 
	
756
	
 
	
 
	
1,493
	
 
	
 
	
2,385
	
 
	
 
	
3,390
	
 
	
 
	
4,479
	
 
	
 
	
5,629
	
 
	
 
	
6,823
	
 
	
 
	
8,048
	
 
	
 
	
9,292
	
 
	
 
	
10,381
	
 
	
 
	
11,256
	
 
	
 
	
11,973
	
 
	
12,569
	
 
	
13,068
	
 
	
13,491
	
 

	
PV AT 13.00% FEDERAL INCOME TAX
	
 
	
13.0
	
%
	
 
	
224
	
 
	
 
	
733
	
 
	
 
	
1,432
	
 
	
 
	
2,263
	
 
	
 
	
3,182
	
 
	
 
	
4,160
	
 
	
 
	
5,175
	
 
	
 
	
6,210
	
 
	
 
	
7,253
	
 
	
 
	
8,294
	
 
	
 
	
9,189
	
 
	
 
	
9,895
	
 
	
 
	
10,463
	
 
	
10,927
	
 
	
11,309
	
 
	
11,627
	
 

	
Tax Reserve before unamort DAC
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
Capital (Based on 300% RBC (i=5.70%))
	
 
	
—
	
 
	
 
	
132
	
 
	
 
	
340
	
 
	
 
	
535
	
 
	
 
	
726
	
 
	
 
	
919
	
 
	
 
	
1,119
	
 
	
 
	
1,328
	
 
	
 
	
1,548
	
 
	
 
	
1,781
	
 
	
 
	
2,030
	
 
	
 
	
2,024
	
 
	
 
	
1,873
	
 
	
 
	
1,763
	
 
	
1,676
	
 
	
1,603
	
 
	
1,543
	
 

	
Capital: After-Tax int less change (i=5.70%)
	
 
	
—
	
 
	
 
	
(132
	
)
	
 
	
(204
	
)
	
 
	
(182
	
)
	
 
	
(172
	
)
	
 
	
(166
	
)
	
 
	
(165
	
)
	
 
	
(167
	
)
	
 
	
(171
	
)
	
 
	
(176
	
)
	
 
	
(183
	
)
	
 
	
81
	
 
	
 
	
227
	
 
	
 
	
179
	
 
	
152
	
 
	
135
	
 
	
120
	
 

	
PRE-TAX BOOK PROFIT
	
 
	
 
	
 
	
 
	
564
	
 
	
 
	
1,458
	
 
	
 
	
2,291
	
 
	
 
	
3,112
	
 
	
 
	
3,940
	
 
	
 
	
4,794
	
 
	
 
	
5,689
	
 
	
 
	
6,632
	
 
	
 
	
7,632
	
 
	
 
	
8,698
	
 
	
 
	
8,675
	
 
	
 
	
8,025
	
 
	
 
	
7,556
	
 
	
7,183
	
 
	
6,871
	
 
	
6,611
	
 

	
FEDERAL INCOME TAX
	
 
	
 
	
 
	
 
	
(254
	
)
	
 
	
(649
	
)
	
 
	
(1,009
	
)
	
 
	
(1,354
	
)
	
 
	
(1,693
	
)
	
 
	
(2,036
	
)
	
 
	
(2,388
	
)
	
 
	
(2,753
	
)
	
 
	
(3,133
	
)
	
 
	
(3,532
	
)
	
 
	
(3,433
	
)
	
 
	
(3,061
	
)
	
 
	
(2,785
	
)
	
(2,567
	
)
	
(2,388
	
)
	
(2,245
	
)

	
PV's -- Primerica Waiver of Premium
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
9.00
	
%
	
 
	
11.00
	
%
	
 
	
13.00
	
%
	
 
	
15.00
	
%
	
 
	
20.00
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV PRE-TAX BOOK PROFIT
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
50,681
	
 
	
 
	
41,001
	
 
	
 
	
33,767
	
 
	
 
	
28,243
	
 
	
 
	
19,094
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV FEDERAL INCOME TAX
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
(19,486
	
)
	
 
	
(15,977
	
)
	
 
	
(13,312
	
)
	
 
	
(11,248
	
)
	
 
	
(7,761
	
)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV Capital: After-Tax int less change (i=5.70%) less Init Cap
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
(574
	
)
	
 
	
(628
	
)
	
 
	
(648
	
)
	
 
	
(647
	
)
	
 
	
(605
	
)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV After-Tax, After Cost of Capital
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
30,621
	
 
	
 
	
24,396
	
 
	
 
	
19,808
	
 
	
 
	
16,348
	
 
	
 
	
10,728
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

C-15

Milliman

 

	
017CIG01\15\0906
	
 
	
 
	
Puck(Rev) @06/30/09 - Baseline: Inforce External Res Financing@0.0% (Preliminary)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
From PUCK0906B.XLS
	
 
	
 
	
Line of Business Projection
	
 
	
 
	
10/21/09
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Baseline Production
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
06:01 PM
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Future Business -10 Years of New Business (000)
	
 
	
2026
	
 
	
 
	
2027
	
 
	
 
	
2028
	
 
	
 
	
2029
	
 
	
 
	
2030
	
 
	
 
	
2031
	
 
	
 
	
2032
	
 
	
 
	
2033
	
 
	
 
	
2034
	
 
	
 
	
2035
	
 
	
 
	
2036
	
 
	
 
	
2037
	
 
	
 
	
2038
	
 
	
 
	
2039
	
 

	
Primerica Waiver of Premium
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
GROSS PREMIUMS
	
 
	
 
	
24,810
	
 
	
 
	
 
	
23,970
	
 
	
 
	
 
	
23,169
	
 
	
 
	
 
	
22,377
	
 
	
 
	
 
	
21,726
	
 
	
 
	
 
	
21,058
	
 
	
 
	
 
	
20,356
	
 
	
 
	
 
	
19,626
	
 
	
 
	
 
	
18,882
	
 
	
 
	
 
	
18,112
	
 
	
 
	
 
	
17,365
	
 
	
 
	
 
	
16,632
	
 
	
 
	
 
	
15,912
	
 
	
 
	
 
	
15,148
	
 

	
REINSURANCE PREMIUMS (NET OF ALLOWANCES:
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
GROSS INVESTMENT INCOME PLUS FEE INCOME
	
 
	
177
	
 
	
 
	
171
	
 
	
 
	
165
	
 
	
 
	
159
	
 
	
 
	
155
	
 
	
 
	
150
	
 
	
 
	
145
	
 
	
 
	
140
	
 
	
 
	
135
	
 
	
 
	
129
	
 
	
 
	
124
	
 
	
 
	
119
	
 
	
 
	
113
	
 
	
 
	
108
	
 

	
ACCRUAL OF DISCOUNT
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
AMORTIZATION OF IMR
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
LESS INVESTMENT EXPENSE
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
LESS INCOME LOST ON DEFAULTS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
TOTAL INCOME
	
 
	
 
	
24,986
	
 
	
 
	
 
	
24,141
	
 
	
 
	
 
	
23,334
	
 
	
 
	
 
	
22,537
	
 
	
 
	
 
	
21,881
	
 
	
 
	
 
	
21,208
	
 
	
 
	
 
	
20,501
	
 
	
 
	
 
	
19,765
	
 
	
 
	
 
	
19,017
	
 
	
 
	
 
	
18,241
	
 
	
 
	
 
	
17,489
	
 
	
 
	
 
	
16,751
	
 
	
 
	
 
	
16,026
	
 
	
 
	
 
	
15,256
	
 

	
NET SURRENDERS
	
 
	
 
	
18,111
	
 
	
 
	
 
	
17,498
	
 
	
 
	
 
	
16,913
	
 
	
 
	
 
	
16,335
	
 
	
 
	
 
	
15,860
	
 
	
 
	
 
	
15,372
	
 
	
 
	
 
	
14,860
	
 
	
 
	
 
	
14,327
	
 
	
 
	
 
	
13,784
	
 
	
 
	
 
	
13,222
	
 
	
 
	
 
	
12,677
	
 
	
 
	
 
	
12,142
	
 
	
 
	
 
	
11,616
	
 
	
 
	
 
	
11,058
	
 

	
HEALTH BENEFITS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
DIRECT DEATH BENEFITS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
REINSURANCE DEATH BENEFITS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
ACQUISITION EXPENSES
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
OTHER EXPENSES
	
 
	
496
	
 
	
 
	
479
	
 
	
 
	
463
	
 
	
 
	
448
	
 
	
 
	
435
	
 
	
 
	
421
	
 
	
 
	
407
	
 
	
 
	
393
	
 
	
 
	
378
	
 
	
 
	
362
	
 
	
 
	
347
	
 
	
 
	
333
	
 
	
 
	
318
	
 
	
 
	
303
	
 

	
NET COMMISSIONS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
COST OF FINANCING
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
INCREASE IN LOADING
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
INCREASE IN RESERVES
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
INCR IN RESERVE FINANCING LIABILITY
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
TOTAL DISBURSEMENTS
	
 
	
 
	
18,607
	
 
	
 
	
 
	
17,977
	
 
	
 
	
 
	
17,377
	
 
	
 
	
 
	
16,783
	
 
	
 
	
 
	
16,295
	
 
	
 
	
 
	
15,794
	
 
	
 
	
 
	
15,267
	
 
	
 
	
 
	
14,719
	
 
	
 
	
 
	
14,162
	
 
	
 
	
 
	
13,584
	
 
	
 
	
 
	
13,024
	
 
	
 
	
 
	
12,474
	
 
	
 
	
 
	
11,934
	
 
	
 
	
 
	
11,361
	
 

	
STATUTORY GAIN
	
 
	
 
	
6,379
	
 
	
 
	
 
	
6,163
	
 
	
 
	
 
	
5,957
	
 
	
 
	
 
	
5,754
	
 
	
 
	
 
	
5,586
	
 
	
 
	
 
	
5,415
	
 
	
 
	
 
	
5,234
	
 
	
 
	
 
	
5,046
	
 
	
 
	
 
	
4,855
	
 
	
 
	
 
	
4,657
	
 
	
 
	
 
	
4,465
	
 
	
 
	
 
	
4,277
	
 
	
 
	
 
	
4,091
	
 
	
 
	
 
	
3,895
	
 

	
CAPITAL GAINS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
GAIN ON CALLS AND ROLLOVER
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
LESS DEFAULT LOSSES
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
LESS IMR CAPITALIZATION
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
BOOK PROFIT
	
 
	
 
	
6,379
	
 
	
 
	
 
	
6,163
	
 
	
 
	
 
	
5,957
	
 
	
 
	
 
	
5,754
	
 
	
 
	
 
	
5,586
	
 
	
 
	
 
	
5,415
	
 
	
 
	
 
	
5,234
	
 
	
 
	
 
	
5,046
	
 
	
 
	
 
	
4,855
	
 
	
 
	
 
	
4,657
	
 
	
 
	
 
	
4,465
	
 
	
 
	
 
	
4,277
	
 
	
 
	
 
	
4,091
	
 
	
 
	
 
	
3,895
	
 

	
INCREASE IN SURPLUS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
FEDERAL INCOME TAX
	
 
	
 
	
2,127
	
 
	
 
	
 
	
2,027
	
 
	
 
	
 
	
1,945
	
 
	
 
	
 
	
1,876
	
 
	
 
	
 
	
1,832
	
 
	
 
	
 
	
1,784
	
 
	
 
	
 
	
1,727
	
 
	
 
	
 
	
1,665
	
 
	
 
	
 
	
1,600
	
 
	
 
	
 
	
1,531
	
 
	
 
	
 
	
1,464
	
 
	
 
	
 
	
1,398
	
 
	
 
	
 
	
1,334
	
 
	
 
	
 
	
1,264
	
 

	
PROFITS RELEASED
	
 
	
 
	
4,253
	
 
	
 
	
 
	
4,136
	
 
	
 
	
 
	
4,013
	
 
	
 
	
 
	
3,877
	
 
	
 
	
 
	
3,754
	
 
	
 
	
 
	
3,631
	
 
	
 
	
 
	
3,507
	
 
	
 
	
 
	
3,381
	
 
	
 
	
 
	
3,255
	
 
	
 
	
 
	
3,126
	
 
	
 
	
 
	
3,001
	
 
	
 
	
 
	
2,879
	
 
	
 
	
 
	
2,758
	
 
	
 
	
 
	
2,631
	
 

	
STATUTORY RESERVE (GA) (Canada=GAAP)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
RESERVE FINANCING
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
TOTAL LIABILITY (GA)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
SEPARATE ACCOUNT LIABILITY
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
TAX RESERVE (GA)
	
 
	
 
	
(10,767
	
)
	
 
	
 
	
(10,396
	
)
	
 
	
 
	
(9,996
	
)
	
 
	
 
	
(9,603
	
)
	
 
	
 
	
(9,251
	
)
	
 
	
 
	
(8,932
	
)
	
 
	
 
	
(8,633
	
)
	
 
	
 
	
(8,345
	
)
	
 
	
 
	
(8,062
	
)
	
 
	
 
	
(7,779
	
)
	
 
	
 
	
(7,496
	
)
	
 
	
 
	
(7,214
	
)
	
 
	
 
	
(6,933
	
)
	
 
	
 
	
(6,648
	
)

	
INTEREST MAINTENANCE RESERVE
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
POLICIES IN FORCE (UNSCALED)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
INSURANCE IN FORCE (NET)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
CASH VALUE IN FORCE
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
ECONOMIC RESERVE (Canada=GAAP)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
EXCESS RESERVE (STAT LESS ECON)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
EXCESS RESERVE (STAT less ECON Floored at Zero)
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
GROSS DEFERRED PREMIUMS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
NET DEFERRED PREMIUMS
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 

	
PV AT 9.00% PROFITS RELEASED
	
 
	
 
	
24,358
	
 
	
 
	
 
	
25,235
	
 
	
 
	
 
	
26,016
	
 
	
 
	
 
	
26,707
	
 
	
 
	
 
	
27,322
	
 
	
 
	
 
	
27,867
	
 
	
 
	
 
	
28,350
	
 
	
 
	
 
	
28,778
	
 
	
 
	
 
	
29,155
	
 
	
 
	
 
	
29,488
	
 
	
 
	
 
	
29,781
	
 
	
 
	
 
	
30,039
	
 
	
 
	
 
	
30,265
	
 
	
 
	
 
	
30,463
	
 

	
PV AT 11.00% PROFITS RELEASED
	
 
	
 
	
20,552
	
 
	
 
	
 
	
21,185
	
 
	
 
	
 
	
21,737
	
 
	
 
	
 
	
22,218
	
 
	
 
	
 
	
22,637
	
 
	
 
	
 
	
23,003
	
 
	
 
	
 
	
23,321
	
 
	
 
	
 
	
23,597
	
 
	
 
	
 
	
23,837
	
 
	
 
	
 
	
24,044
	
 
	
 
	
 
	
24,223
	
 
	
 
	
 
	
24,378
	
 
	
 
	
 
	
24,512
	
 
	
 
	
 
	
24,627
	
 

	
PV AT 13.00% PROFITS RELEASED
	
 
	
 
	
17,487
	
 
	
 
	
 
	
17,946
	
 
	
 
	
 
	
18,339
	
 
	
 
	
 
	
18,676
	
 
	
 
	
 
	
18,964
	
 
	
 
	
 
	
19,211
	
 
	
 
	
 
	
19,422
	
 
	
 
	
 
	
19,602
	
 
	
 
	
 
	
19,755
	
 
	
 
	
 
	
19,885
	
 
	
 
	
 
	
19,996
	
 
	
 
	
 
	
20,090
	
 
	
 
	
 
	
20,170
	
 
	
 
	
 
	
20,237
	
 

	
PV AT 9.00% BOOK PROFITS
	
 
	
 
	
40,621
	
 
	
 
	
 
	
41,927
	
 
	
 
	
 
	
43,086
	
 
	
 
	
 
	
44,112
	
 
	
 
	
 
	
45,027
	
 
	
 
	
 
	
45,840
	
 
	
 
	
 
	
46,561
	
 
	
 
	
 
	
47,199
	
 
	
 
	
 
	
47,762
	
 
	
 
	
 
	
48,258
	
 
	
 
	
 
	
48,693
	
 
	
 
	
 
	
49,076
	
 
	
 
	
 
	
49,412
	
 
	
 
	
 
	
49,706
	
 

	
PV AT 11.00% BOOK PROFITS
	
 
	
 
	
34,404
	
 
	
 
	
 
	
35,346
	
 
	
 
	
 
	
36,166
	
 
	
 
	
 
	
36,880
	
 
	
 
	
 
	
37,504
	
 
	
 
	
 
	
38,049
	
 
	
 
	
 
	
38,524
	
 
	
 
	
 
	
38,936
	
 
	
 
	
 
	
39,293
	
 
	
 
	
 
	
39,602
	
 
	
 
	
 
	
39,869
	
 
	
 
	
 
	
40,099
	
 
	
 
	
 
	
40,298
	
 
	
 
	
 
	
40,468
	
 

	
PV AT 13.00% BOOK PROFITS
	
 
	
 
	
29,380
	
 
	
 
	
 
	
30,063
	
 
	
 
	
 
	
30,648
	
 
	
 
	
 
	
31,147
	
 
	
 
	
 
	
31,576
	
 
	
 
	
 
	
31,944
	
 
	
 
	
 
	
32,259
	
 
	
 
	
 
	
32,527
	
 
	
 
	
 
	
32,756
	
 
	
 
	
 
	
32,950
	
 
	
 
	
 
	
33,115
	
 
	
 
	
 
	
33,254
	
 
	
 
	
 
	
33,373
	
 
	
 
	
 
	
33,472
	
 

	
PV AT 9.00% FEDERAL INCOME TAX
	
 
	
 
	
16,262
	
 
	
 
	
 
	
16,692
	
 
	
 
	
 
	
17,070
	
 
	
 
	
 
	
17,405
	
 
	
 
	
 
	
17,705
	
 
	
 
	
 
	
17,973
	
 
	
 
	
 
	
18,211
	
 
	
 
	
 
	
18,421
	
 
	
 
	
 
	
18,607
	
 
	
 
	
 
	
18,770
	
 
	
 
	
 
	
18,913
	
 
	
 
	
 
	
19,038
	
 
	
 
	
 
	
19,147
	
 
	
 
	
 
	
19,243
	
 

	
PV AT 11.00% FEDERAL INCOME TAX
	
 
	
 
	
13,852
	
 
	
 
	
 
	
14,161
	
 
	
 
	
 
	
14,429
	
 
	
 
	
 
	
14,662
	
 
	
 
	
 
	
14,867
	
 
	
 
	
 
	
15,046
	
 
	
 
	
 
	
15,203
	
 
	
 
	
 
	
15,339
	
 
	
 
	
 
	
15,457
	
 
	
 
	
 
	
15,558
	
 
	
 
	
 
	
15,646
	
 
	
 
	
 
	
15,721
	
 
	
 
	
 
	
15,785
	
 
	
 
	
 
	
15,841
	
 

	
PV AT 13.00% FEDERAL INCOME TAX
	
 
	
 
	
11,893
	
 
	
 
	
 
	
12,118
	
 
	
 
	
 
	
12,308
	
 
	
 
	
 
	
12,471
	
 
	
 
	
 
	
12,612
	
 
	
 
	
 
	
12,733
	
 
	
 
	
 
	
12,837
	
 
	
 
	
 
	
12,926
	
 
	
 
	
 
	
13,001
	
 
	
 
	
 
	
13,065
	
 
	
 
	
 
	
13,119
	
 
	
 
	
 
	
13,164
	
 
	
 
	
 
	
13,203
	
 
	
 
	
 
	
13,235
	
 

	
Tax Reserve before unamort DAC
	
 
	
 
	
—
	
 
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
Capital (Based on 300% RBC (i=5.70%))
	
 
	
 
	
1,489
	
 
	
 
	
 
	
1,438
	
 
	
 
	
 
	
1,390
	
 
	
 
	
 
	
1,343
	
 
	
 
	
 
	
1,304
	
 
	
 
	
 
	
1,263
	
 
	
 
	
 
	
1,221
	
 
	
 
	
 
	
1,178
	
 
	
 
	
 
	
1,133
	
 
	
 
	
 
	
1,087
	
 
	
 
	
 
	
1,042
	
 
	
 
	
998
	
 
	
 
	
955
	
 
	
 
	
909
	
 

	
Capital: After-Tax int less change (i=5.70%)
	
 
	
111
	
 
	
 
	
106
	
 
	
 
	
101
	
 
	
 
	
99
	
 
	
 
	
89
	
 
	
 
	
88
	
 
	
 
	
89
	
 
	
 
	
89
	
 
	
 
	
88
	
 
	
 
	
88
	
 
	
 
	
85
	
 
	
 
	
83
	
 
	
 
	
80
	
 
	
 
	
81
	
 

	
PRE-TAX BOOK PROFIT
	
 
	
 
	
6,379
	
 
	
 
	
 
	
6,163
	
 
	
 
	
 
	
5,957
	
 
	
 
	
 
	
5,754
	
 
	
 
	
 
	
5,586
	
 
	
 
	
 
	
5,415
	
 
	
 
	
 
	
5,234
	
 
	
 
	
 
	
5,046
	
 
	
 
	
 
	
4,855
	
 
	
 
	
 
	
4,657
	
 
	
 
	
 
	
4,465
	
 
	
 
	
 
	
4,277
	
 
	
 
	
 
	
4,091
	
 
	
 
	
 
	
3,895
	
 

	
FEDERAL INCOME TAX
	
 
	
 
	
(2,127
	
)
	
 
	
 
	
(2,027
	
)
	
 
	
 
	
(1,945
	
)
	
 
	
 
	
(1,876
	
)
	
 
	
 
	
(1,832
	
)
	
 
	
 
	
(1,784
	
)
	
 
	
 
	
(1,727
	
)
	
 
	
 
	
(1,665
	
)
	
 
	
 
	
(1,600
	
)
	
 
	
 
	
(1,531
	
)
	
 
	
 
	
(1,464
	
)
	
 
	
 
	
(1,398
	
)
	
 
	
 
	
(1,334
	
)
	
 
	
 
	
(1,264
	
)

	
PV's -- Primerica Waiver of Premium
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV PRE-TAX BOOK PROFIT
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV FEDERAL INCOME TAX
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV Capital: After-Tax int less change (i=5.70%) less Init Cap
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV After-Tax, After Cost of Capital
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

 

 

C-16

Milliman

 

 

	
017CIG01\15\0906
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Puck(Rev) @06/30/09 - Baseline: Inforce External Res Financing@0.0% (Preliminary)
	
 
	
10/21/09
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
From PUCK0906B.XLS
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Line of Business Projection
	
 
	
06:01 PM
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Baseline Production
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Future Business - 10 Years of New Business (000)
	
2009
	
 
	
2010
	
 
	
2011
	
 
	
2012
	
 
	
2013
	
 
	
2014
	
 
	
2015
	
 
	
2016
	
 
	
2017
	
 
	
2018
	
 
	
2019
	
 
	
2020
	
 
	
2021
	
 
	
2022
	
 
	
2023
	
 
	
2024
	
 
	
2025
	
 

	
Primerica Retained Asset Account
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
GROSS PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
REINSURANCE PREMIUMS (NET OF ALLOWANCES:
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
GROSS INVESTMENT INCOME PLUS FEE INCOME
	
 
	
—
	
 
	
 
	
178
	
 
	
 
	
646
	
 
	
 
	
1,238
	
 
	
 
	
1,883
	
 
	
 
	
2,617
	
 
	
 
	
3,446
	
 
	
 
	
4,377
	
 
	
 
	
5,420
	
 
	
 
	
6,586
	
 
	
 
	
7,893
	
 
	
 
	
8,982
	
 
	
 
	
9,605
	
 
	
 
	
10,111
	
 
	
10,676
	
 
	
11,253
	
 
	
11,874
	
 

	
ACCRUAL OF DISCOUNT
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
AMORTIZATION OF IMR
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
LESS INVESTMENT EXPENSE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
LESS INCOME LOST ON DEFAULTS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
TOTAL INCOME
	
 
	
—
	
 
	
 
	
178
	
 
	
 
	
646
	
 
	
 
	
1,238
	
 
	
 
	
1,883
	
 
	
 
	
2,617
	
 
	
 
	
3,446
	
 
	
 
	
4,377
	
 
	
 
	
5,420
	
 
	
 
	
6,586
	
 
	
 
	
7,893
	
 
	
 
	
8,982
	
 
	
 
	
9,605
	
 
	
 
	
10,111
	
 
	
10,676
	
 
	
11,253
	
 
	
11,874
	
 

	
NET SURRENDERS
	
 
	
—
	
 
	
 
	
(6,253
	
)
	
 
	
(10,171
	
)
	
 
	
(10,305
	
)
	
 
	
(11,606
	
)
	
 
	
(12,963
	
)
	
 
	
(14,379
	
)
	
 
	
(15,947
	
)
	
 
	
(17,628
	
)
	
 
	
(19,496
	
)
	
 
	
(21,705
	
)
	
 
	
(10,884
	
)
	
 
	
(4,285
	
)
	
 
	
(6,123
	
)
	
(6,058
	
)
	
(6,071
	
)
	
(7,174
	
)

	
HEALTH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
DIRECT DEATH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
REINSURANCE DEATH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
ACQUISITION EXPENSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
OTHER EXPENSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
NET COMMISSIONS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
COST OF FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
INCREASE IN LOADING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
INCREASE IN RESERVES
	
 
	
—
	
 
	
 
	
6,253
	
 
	
 
	
10,309
	
 
	
 
	
10,670
	
 
	
 
	
12,205
	
 
	
 
	
13,830
	
 
	
 
	
15,550
	
 
	
 
	
17,461
	
 
	
 
	
19,526
	
 
	
 
	
21,824
	
 
	
 
	
24,512
	
 
	
 
	
14,231
	
 
	
 
	
7,945
	
 
	
 
	
9,958
	
 
	
10,112
	
 
	
10,347
	
 
	
11,678
	
 

	
INCR IN RESERVE FINANCING LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
TOTAL DISBURSEMENTS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
138
	
 
	
 
	
364
	
 
	
 
	
599
	
 
	
 
	
868
	
 
	
 
	
1,172
	
 
	
 
	
1,514
	
 
	
 
	
1,898
	
 
	
 
	
2,328
	
 
	
 
	
2,808
	
 
	
 
	
3,347
	
 
	
 
	
3,660
	
 
	
 
	
3,835
	
 
	
4,054
	
 
	
4,277
	
 
	
4,504
	
 

	
STATUTORY GAIN
	
 
	
—
	
 
	
 
	
178
	
 
	
 
	
509
	
 
	
 
	
873
	
 
	
 
	
1,284
	
 
	
 
	
1,750
	
 
	
 
	
2,274
	
 
	
 
	
2,863
	
 
	
 
	
3,522
	
 
	
 
	
4,259
	
 
	
 
	
5,086
	
 
	
 
	
5,635
	
 
	
 
	
5,945
	
 
	
 
	
6,276
	
 
	
6,977
	
 
	
6,977
	
 
	
7,370
	
 

	
CAPITAL GAINS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
GAIN ON CALLS AND ROLLOVER
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
LESS DEFAULT LOSSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
LESS IMR CAPITALIZATION
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
BOOK PROFIT
	
 
	
—
	
 
	
 
	
178
	
 
	
 
	
509
	
 
	
 
	
873
	
 
	
 
	
1,284
	
 
	
 
	
1,750
	
 
	
 
	
2,274
	
 
	
 
	
2,863
	
 
	
 
	
3,522
	
 
	
 
	
4,259
	
 
	
 
	
5,086
	
 
	
 
	
5,635
	
 
	
 
	
5,945
	
 
	
 
	
6,276
	
 
	
6,622
	
 
	
6,977
	
 
	
7,370
	
 

	
INCREASE IN SURPLUS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
FEDERAL INCOME TAX
	
 
	
—
	
 
	
 
	
62
	
 
	
 
	
178
	
 
	
 
	
306
	
 
	
 
	
449
	
 
	
 
	
612
	
 
	
 
	
796
	
 
	
 
	
1,002
	
 
	
 
	
1,233
	
 
	
 
	
1,491
	
 
	
 
	
1,780
	
 
	
 
	
1,972
	
 
	
 
	
2,081
	
 
	
 
	
2,196
	
 
	
2,318
	
 
	
2,442
	
 
	
2,580
	
 

	
PROFITS RELEASED
	
 
	
—
	
 
	
 
	
116
	
 
	
 
	
331
	
 
	
 
	
568
	
 
	
 
	
835
	
 
	
 
	
1,137
	
 
	
 
	
1,478
	
 
	
 
	
1,861
	
 
	
 
	
2,289
	
 
	
 
	
2,768
	
 
	
 
	
3,306
	
 
	
 
	
3,663
	
 
	
 
	
3,864
	
 
	
 
	
4,079
	
 
	
4,304
	
 
	
4,535
	
 
	
4,791
	
 

	
STATUTORY RESERVE (GA) (Canada=GAAP)
	
 
	
—
	
 
	
 
	
6,253
	
 
	
 
	
16,562
	
 
	
 
	
27,232
	
 
	
 
	
39,437
	
 
	
 
	
53,267
	
 
	
 
	
68,818
	
 
	
 
	
86,279
	
 
	
 
	
105,805
	
 
	
 
	
127,628
	
 
	
 
	
152,141
	
 
	
 
	
166,372
	
 
	
 
	
174,317
	
 
	
 
	
184,275
	
 
	
194,386
	
 
	
204,734
	
 
	
216,412
	
 

	
RESERVE FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
TOTAL LIABILITY (GA)
	
 
	
—
	
 
	
 
	
6,253
	
 
	
 
	
16,562
	
 
	
 
	
27,232
	
 
	
 
	
39,437
	
 
	
 
	
53,267
	
 
	
 
	
68,818
	
 
	
 
	
86,279
	
 
	
 
	
105,805
	
 
	
 
	
127,628
	
 
	
 
	
152,141
	
 
	
 
	
166,372
	
 
	
 
	
174,317
	
 
	
 
	
184,275
	
 
	
194,386
	
 
	
204,734
	
 
	
216,412
	
 

	
SEPARATE ACCOUNT LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
TAX RESERVE (GA)
	
 
	
—
	
 
	
 
	
6,253
	
 
	
 
	
16,562
	
 
	
 
	
27,232
	
 
	
 
	
39,437
	
 
	
 
	
53,267
	
 
	
 
	
68,818
	
 
	
 
	
86,279
	
 
	
 
	
105,805
	
 
	
 
	
127,628
	
 
	
 
	
152,141
	
 
	
 
	
166,372
	
 
	
 
	
174,317
	
 
	
 
	
184,275
	
 
	
194,386
	
 
	
204,734
	
 
	
216,412
	
 

	
INTEREST MAINTENANCE RESERVE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
POLICIES IN FORCE (UNSCALED)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
INSURANCE IN FORCE (NET)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
CASH VALUE IN FORCE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
ECONOMIC RESERVE (Canada=GAAP)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
EXCESS RESERVE (STAT LESS ECON)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
EXCESS RESERVE (STAT less ECON Floored at Zero)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
GROSS DEFERRED PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
NET DEFERRED PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—
	
 

	
PV AT 9.00% PROFITS RELEASED
	
 
	
—
	
 
	
 
	
106
	
 
	
 
	
385
	
 
	
 
	
823
	
 
	
 
	
1,414
	
 
	
 
	
2,153
	
 
	
 
	
3,035
	
 
	
 
	
4,053
	
 
	
 
	
5,202
	
 
	
 
	
6,476
	
 
	
 
	
7,873
	
 
	
 
	
9,292
	
 
	
 
	
10,666
	
 
	
 
	
11,997
	
 
	
13,285
	
 
	
14,530
	
 
	
15,736
	
 

	
PV AT 11.00% PROFITS RELEASED
	
 
	
—
	
 
	
 
	
104
	
 
	
 
	
373
	
 
	
 
	
788
	
 
	
 
	
1,338
	
 
	
 
	
2,013
	
 
	
 
	
2,803
	
 
	
 
	
3,699
	
 
	
 
	
4,693
	
 
	
 
	
5,775
	
 
	
 
	
6,939
	
 
	
 
	
8,101
	
 
	
 
	
9,206
	
 
	
 
	
10,256
	
 
	
11,255
	
 
	
12,203
	
 
	
13,105
	
 

	
PV AT 13.00% PROFITS RELEASED
	
 
	
—
	
 
	
 
	
103
	
 
	
 
	
361
	
 
	
 
	
755
	
 
	
 
	
1,267
	
 
	
 
	
1,884
	
 
	
 
	
2,594
	
 
	
 
	
3,385
	
 
	
 
	
4,246
	
 
	
 
	
5,168
	
 
	
 
	
6,142
	
 
	
 
	
7,096
	
 
	
 
	
7,988
	
 
	
 
	
8,821
	
 
	
9,599
	
 
	
10,324
	
 
	
11,001
	
 

	
PV AT 9.00% BOOK PROFITS
	
 
	
9.0
	
%
	
 
	
164
	
 
	
 
	
592
	
 
	
 
	
1,266
	
 
	
 
	
2,176
	
 
	
 
	
3,313
	
 
	
 
	
4,669
	
 
	
 
	
6,235
	
 
	
 
	
8,003
	
 
	
 
	
9,964
	
 
	
 
	
12,112
	
 
	
 
	
14,296
	
 
	
 
	
16,409
	
 
	
 
	
18,456
	
 
	
20,438
	
 
	
22,353
	
 
	
24,210
	
 

	
PV AT 11.00% BOOK PROFITS
	
 
	
11.0
	
%
	
 
	
161
	
 
	
 
	
573
	
 
	
 
	
1,212
	
 
	
 
	
2,058
	
 
	
 
	
3,096
	
 
	
 
	
4,312
	
 
	
 
	
5,691
	
 
	
 
	
7,219
	
 
	
 
	
8,884
	
 
	
 
	
10,675
	
 
	
 
	
12,463
	
 
	
 
	
14,163
	
 
	
 
	
15,779
	
 
	
17,315
	
 
	
18,773
	
 
	
20,161
	
 

	
PV AT 13.00% BOOK PROFITS
	
 
	
13.0
	
%
	
 
	
158
	
 
	
 
	
556
	
 
	
 
	
1,161
	
 
	
 
	
1,949
	
 
	
 
	
2,899
	
 
	
 
	
3,991
	
 
	
 
	
5,208
	
 
	
 
	
6,533
	
 
	
 
	
7,950
	
 
	
 
	
9,449
	
 
	
 
	
10,918
	
 
	
 
	
12,289
	
 
	
 
	
13,570
	
 
	
14,767
	
 
	
15,882
	
 
	
16,925
	
 

	
PV AT 9.00% FEDERAL INCOME TAX
	
 
	
9.0
	
%
	
 
	
57
	
 
	
 
	
207
	
 
	
 
	
443
	
 
	
 
	
761
	
 
	
 
	
1,160
	
 
	
 
	
1,634
	
 
	
 
	
2,182
	
 
	
 
	
2,801
	
 
	
 
	
3,487
	
 
	
 
	
4,239
	
 
	
 
	
5,003
	
 
	
 
	
5,743
	
 
	
 
	
6,460
	
 
	
7,153
	
 
	
7,824
	
 
	
8,473
	
 

	
PV AT 11.00% FEDERAL INCOME TAX
	
 
	
11.0
	
%
	
 
	
56
	
 
	
 
	
201
	
 
	
 
	
424
	
 
	
 
	
720
	
 
	
 
	
1,084
	
 
	
 
	
1,509
	
 
	
 
	
1,992
	
 
	
 
	
2,527
	
 
	
 
	
3,110
	
 
	
 
	
3,736
	
 
	
 
	
4,362
	
 
	
 
	
4,957
	
 
	
 
	
5,523
	
 
	
6,060
	
 
	
6,571
	
 
	
7,056
	
 

	
PV AT 13.00% FEDERAL INCOME TAX
	
 
	
13.0
	
%
	
 
	
55
	
 
	
 
	
195
	
 
	
 
	
407
	
 
	
 
	
682
	
 
	
 
	
1,014
	
 
	
 
	
1,397
	
 
	
 
	
1,823
	
 
	
 
	
2,286
	
 
	
 
	
2,783
	
 
	
 
	
3,307
	
 
	
 
	
3,821
	
 
	
 
	
4,301
	
 
	
 
	
4,750
	
 
	
5,168
	
 
	
5,559
	
 
	
5,924
	
 

	
Tax Reserve before unamort DAC
	
 
	
—
	
 
	
 
	
6,253
	
 
	
 
	
16,562
	
 
	
 
	
27,232
	
 
	
 
	
39,437
	
 
	
 
	
53,267
	
 
	
 
	
68,818
	
 
	
 
	
86,279
	
 
	
 
	
105,805
	
 
	
 
	
127,628
	
 
	
 
	
152,141
	
 
	
 
	
166,372
	
 
	
 
	
174,317
	
 
	
 
	
184,275
	
 
	
194,386
	
 
	
204,734
	
 
	
216,412
	
 

	
Capital (Based on 300% RBC (i=5.70%))
	
 
	
—
	
 
	
 
	
197
	
 
	
 
	
522
	
 
	
 
	
858
	
 
	
 
	
1,242
	
 
	
 
	
1,678
	
 
	
 
	
2,168
	
 
	
 
	
2,718
	
 
	
 
	
3,333
	
 
	
 
	
4,020
	
 
	
 
	
4,792
	
 
	
 
	
5,241
	
 
	
 
	
5,491
	
 
	
 
	
5,805
	
 
	
6,123
	
 
	
6,449
	
 
	
6,817
	
 

	
Capital: After-Tax int less change (i=5.70%)
	
 
	
—
	
 
	
 
	
(197
	
)
	
 
	
(317
	
)
	
 
	
(317
	
)
	
 
	
(353
	
)
	
 
	
(390
	
)
	
 
	
(428
	
)
	
 
	
(470
	
)
	
 
	
(514
	
)
	
 
	
(564
	
)
	
 
	
(623
	
)
	
 
	
(271
	
)
	
 
	
(56
	
)
	
 
	
(110
	
)
	
(103
	
)
	
(99
	
)
	
(129
	
)

	
PV’s -- Primerica Retained Asset Account
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
9.00
	
%
	
 
	
11.00
	
%
	
 
	
13.00
	
%
	
 
	
15.00
	
%
	
 
	
20.00
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV PRE-TAX BOOK PROFIT
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
44,912
	
 
	
 
	
33,643
	
 
	
 
	
25,846
	
 
	
 
	
20,310
	
 
	
 
	
12,078
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV FEDERAL INCOME TAX
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
(15,719
	
)
	
 
	
(11,775
	
)
	
 
	
(9,046
	
)
	
 
	
(7,108
	
)
	
 
	
(4,227
	
)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV Capital. After-Tax int less change (i=5.70%) less Init Cap
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
(2,010
	
)
	
 
	
(2,048
	
)
	
 
	
(1,979
	
)
	
 
	
(1,864
	
)
	
 
	
(1,545
	
)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV After-Tax, After Cost of Capital
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
27,183
	
 
	
 
	
19,819
	
 
	
 
	
14,821
	
 
	
 
	
11,337
	
 
	
 
	
6,306
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

C-17

Milliman

 

 

	
017CIG01\15\0906
	
Puck(Rev) @06/30/09 - Baseline: Inforce External Res Financing@0.0% (Preliminary)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
10/21/09
	
 
	
 
	
 
	
 

	
From PUCK0906B.XLS
	
Line of Business Projection
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
06:01 PM
	
 
	
 
	
 
	
 

	
Baseline Production
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Future Business - 10 Years of New Business (000)
	
2026
	
 
	
2027
	
 
	
2028
	
 
	
2029
	
 
	
2030
	
 
	
2031
	
 
	
2032
	
 
	
2033
	
 
	
2034
	
 
	
2035
	
 
	
2036
	
 
	
2037
	
 
	
2038
	
 
	
2039
	
 

	
Primerica Retained Asset Account
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
GROSS PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
REINSURANCE PREMIUMS (NET OF ALLOWANCES)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
GROSS INVESTMENT INCOME PLUS FEE INCOME
	
 
	
12,545
	
 
	
 
	
13,235
	
 
	
 
	
13,942
	
 
	
 
	
14,656
	
 
	
 
	
15,302
	
 
	
 
	
15,796
	
 
	
 
	
16,160
	
 
	
 
	
16,421
	
 
	
 
	
16,566
	
 
	
 
	
16,536
	
 
	
 
	
16,328
	
 
	
 
	
16,004
	
 
	
 
	
15,553
	
 
	
 
	
14,775
	
 

	
ACCRUAL OF DISCOUNT
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
AMORTIZATION OF IMR
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INVESTMENT EXPENSE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INCOME LOST ON DEFAULTS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL INCOME
	
 
	
12,545
	
 
	
 
	
13,235
	
 
	
 
	
13,942
	
 
	
 
	
14,656
	
 
	
 
	
15,302
	
 
	
 
	
15,796
	
 
	
 
	
16,160
	
 
	
 
	
16,421
	
 
	
 
	
16,566
	
 
	
 
	
16,536
	
 
	
 
	
16,328
	
 
	
 
	
16,004
	
 
	
 
	
15,553
	
 
	
 
	
14,775
	
 

	
NET SURRENDERS
	
 
	
(7,348
	
)
	
 
	
(7,350
	
)
	
 
	
(7,391
	
)
	
 
	
(7,073
	
)
	
 
	
(4,423
	
)
	
 
	
(1,210
	
)
	
 
	
602
	
 
	
 
	
2,751
	
 
	
 
	
4,900
	
 
	
 
	
9,039
	
 
	
 
	
11,205
	
 
	
 
	
13,041
	
 
	
 
	
15,395
	
 
	
 
	
24,266
	
 

	
HEALTH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
DIRECT DEATH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
REINSURANCE DEATH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
ACQUISITION EXPENSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
OTHER EXPENSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
NET COMMISSIONS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
COST OF FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INCREASE IN LOADING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INCREASE IN RESERVES
	
 
	
12,109
	
 
	
 
	
12,378
	
 
	
 
	
12,691
	
 
	
 
	
12,652
	
 
	
 
	
10,281
	
 
	
 
	
7,293
	
 
	
 
	
5,642
	
 
	
 
	
3,617
	
 
	
 
	
1,548
	
 
	
 
	
(2,558
	
)
	
 
	
(4,780
	
)
	
 
	
(6,720
	
)
	
 
	
(9,222
	
)
	
 
	
(18,296
	
)

	
INCR IN RESERVE FINANCING LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL DISBURSEMENTS
	
 
	
4,761
	
 
	
 
	
5,027
	
 
	
 
	
5,300
	
 
	
 
	
5,579
	
 
	
 
	
5,857
	
 
	
 
	
6,083
	
 
	
 
	
6,244
	
 
	
 
	
6,368
	
 
	
 
	
6,448
	
 
	
 
	
6,482
	
 
	
 
	
6,425
	
 
	
 
	
6,320
	
 
	
 
	
6,172
	
 
	
 
	
5,970
	
 

	
STATUTORY GAIN
	
 
	
7,784
	
 
	
 
	
8,208
	
 
	
 
	
8,642
	
 
	
 
	
9,077
	
 
	
 
	
9,445
	
 
	
 
	
9,713
	
 
	
 
	
9,916
	
 
	
 
	
10,053
	
 
	
 
	
10,118
	
 
	
 
	
10,054
	
 
	
 
	
9,903
	
 
	
 
	
9,683
	
 
	
 
	
9,381
	
 
	
 
	
8,805
	
 

	
CAPITAL GAINS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
GAIN ON CALLS AND ROLLOVER
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS DEFAULT LOSSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS IMR CAPITALIZATION
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
BOOK PROFIT
	
 
	
7,784
	
 
	
 
	
8,208
	
 
	
 
	
8,642
	
 
	
 
	
9,077
	
 
	
 
	
9,445
	
 
	
 
	
9,713
	
 
	
 
	
9,916
	
 
	
 
	
10,053
	
 
	
 
	
10,118
	
 
	
 
	
10,054
	
 
	
 
	
9,903
	
 
	
 
	
9,683
	
 
	
 
	
9,381
	
 
	
 
	
8,805
	
 

	
INCREASE IN SURPLUS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
FEDERAL INCOME TAX
	
 
	
2,724
	
 
	
 
	
2,873
	
 
	
 
	
3,025
	
 
	
 
	
3,177
	
 
	
 
	
3,306
	
 
	
 
	
3,399
	
 
	
 
	
3,471
	
 
	
 
	
3,518
	
 
	
 
	
3,541
	
 
	
 
	
3,519
	
 
	
 
	
3,466
	
 
	
 
	
3,389
	
 
	
 
	
3,283
	
 
	
 
	
3,082
	
 

	
PROFITS RELEASED
	
 
	
5,059
	
 
	
 
	
5,335
	
 
	
 
	
5,617
	
 
	
 
	
5,900
	
 
	
 
	
6,139
	
 
	
 
	
6,313
	
 
	
 
	
6,446
	
 
	
 
	
6,534
	
 
	
 
	
6,577
	
 
	
 
	
6,535
	
 
	
 
	
6,437
	
 
	
 
	
6,294
	
 
	
 
	
6,098
	
 
	
 
	
5,724
	
 

	
STATUTORY RESERVE (GA) (Canada=GAAP)
	
 
	
228,521
	
 
	
 
	
240,899
	
 
	
 
	
253,589
	
 
	
 
	
266,241
	
 
	
 
	
276,522
	
 
	
 
	
283,815
	
 
	
 
	
289,457
	
 
	
 
	
293,074
	
 
	
 
	
294,622
	
 
	
 
	
292,064
	
 
	
 
	
287,285
	
 
	
 
	
280,564
	
 
	
 
	
271,342
	
 
	
 
	
253,046
	
 

	
RESERVE FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL LIABILITY (GA)
	
 
	
228,521
	
 
	
 
	
240,899
	
 
	
 
	
253,589
	
 
	
 
	
266,241
	
 
	
 
	
276,522
	
 
	
 
	
283,815
	
 
	
 
	
289,457
	
 
	
 
	
293,074
	
 
	
 
	
294,622
	
 
	
 
	
292,064
	
 
	
 
	
287,285
	
 
	
 
	
280,564
	
 
	
 
	
271,342
	
 
	
 
	
253,046
	
 

	
SEPARATE ACCOUNT LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TAX RESERVE (GA)
	
 
	
228,521
	
 
	
 
	
240,899
	
 
	
 
	
253,589
	
 
	
 
	
266,241
	
 
	
 
	
276,522
	
 
	
 
	
283,815
	
 
	
 
	
289,457
	
 
	
 
	
293,074
	
 
	
 
	
294,622
	
 
	
 
	
292,064
	
 
	
 
	
287,285
	
 
	
 
	
280,564
	
 
	
 
	
271,342
	
 
	
 
	
253,046
	
 

	
INTEREST MAINTENANCE RESERVE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
POLICIES IN FORCE (UNSCALED)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INSURANCE IN FORCE (NET)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
CASH VALUE IN FORCE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
ECONOMIC RESERVE (Canada=GAAP)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
EXCESS RESERVE (STAT LESS ECON)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
EXCESS RESERVE (STAT less ECON Floored at Zero)
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
GROSS DEFERRED PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
NET DEFERRED PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
PV AT 9.00% PROFITS RELEASED
	
 
	
16,905
	
 
	
 
	
18,036
	
 
	
 
	
19,129
	
 
	
 
	
20,182
	
 
	
 
	
21,187
	
 
	
 
	
22,135
	
 
	
 
	
23,023
	
 
	
 
	
23,849
	
 
	
 
	
24,611
	
 
	
 
	
25,307
	
 
	
 
	
25,935
	
 
	
 
	
26,499
	
 
	
 
	
27,000
	
 
	
 
	
27,431
	
 

	
PV AT 11.00% PROFITS RELEASED
	
 
	
13,963
	
 
	
 
	
14,778
	
 
	
 
	
15,552
	
 
	
 
	
16,283
	
 
	
 
	
16,969
	
 
	
 
	
17,605
	
 
	
 
	
18,189
	
 
	
 
	
18,723
	
 
	
 
	
19,207
	
 
	
 
	
19,641
	
 
	
 
	
20,025
	
 
	
 
	
20,364
	
 
	
 
	
20,660
	
 
	
 
	
20,910
	
 

	
PV AT 13.00% PROFITS RELEASED
	
 
	
11,635
	
 
	
 
	
12,226
	
 
	
 
	
12,777
	
 
	
 
	
13,289
	
 
	
 
	
13,761
	
 
	
 
	
14,190
	
 
	
 
	
14,577
	
 
	
 
	
14,925
	
 
	
 
	
15,235
	
 
	
 
	
15,507
	
 
	
 
	
15,745
	
 
	
 
	
15,950
	
 
	
 
	
16,126
	
 
	
 
	
16,273
	
 

	
PV AT 9.00% BOOK PROFITS
	
 
	
26,008
	
 
	
 
	
27,748
	
 
	
 
	
29,429
	
 
	
 
	
31,049
	
 
	
 
	
32,595
	
 
	
 
	
34,053
	
 
	
 
	
35,420
	
 
	
 
	
36,690
	
 
	
 
	
37,864
	
 
	
 
	
38,933
	
 
	
 
	
39,900
	
 
	
 
	
40,767
	
 
	
 
	
41,538
	
 
	
 
	
42,202
	
 

	
PV AT 11.00% BOOK PROFITS
	
 
	
21,481
	
 
	
 
	
22,736
	
 
	
 
	
23,925
	
 
	
 
	
25,051
	
 
	
 
	
26,107
	
 
	
 
	
27,084
	
 
	
 
	
27,984
	
 
	
 
	
28,805
	
 
	
 
	
29,550
	
 
	
 
	
30,217
	
 
	
 
	
30,808
	
 
	
 
	
31,329
	
 
	
 
	
31,784
	
 
	
 
	
32,169
	
 

	
PV AT 13.00% BOOK PROFITS
	
 
	
17,900
	
 
	
 
	
18,810
	
 
	
 
	
19,657
	
 
	
 
	
20,445
	
 
	
 
	
21,170
	
 
	
 
	
21,830
	
 
	
 
	
22,427
	
 
	
 
	
22,962
	
 
	
 
	
23,438
	
 
	
 
	
23,857
	
 
	
 
	
24,223
	
 
	
 
	
24,539
	
 
	
 
	
24,810
	
 
	
 
	
25,035
	
 

	
PV AT 9.00% FEDERAL INCOME TAX
	
 
	
9,103
	
 
	
 
	
9,712
	
 
	
 
	
10,300
	
 
	
 
	
10,867
	
 
	
 
	
11,408
	
 
	
 
	
11,919
	
 
	
 
	
12,397
	
 
	
 
	
12,842
	
 
	
 
	
13,252
	
 
	
 
	
13,627
	
 
	
 
	
13,965
	
 
	
 
	
14,269
	
 
	
 
	
14,538
	
 
	
 
	
14,771
	
 

	
PV AT 11.00% FEDERAL INCOME TAX
	
 
	
7,518
	
 
	
 
	
7,957
	
 
	
 
	
8,374
	
 
	
 
	
8,768
	
 
	
 
	
9,137
	
 
	
 
	
9,480
	
 
	
 
	
9,794
	
 
	
 
	
10,082
	
 
	
 
	
10,342
	
 
	
 
	
10,576
	
 
	
 
	
10,783
	
 
	
 
	
10,965
	
 
	
 
	
11,125
	
 
	
 
	
11,259
	
 

	
PVAT 13.00% FEDERAL INCOME TAX
	
 
	
6,265
	
 
	
 
	
6,583
	
 
	
 
	
6,880
	
 
	
 
	
7,156
	
 
	
 
	
7,410
	
 
	
 
	
7,641
	
 
	
 
	
7,849
	
 
	
 
	
8,037
	
 
	
 
	
8,203
	
 
	
 
	
8,350
	
 
	
 
	
8,478
	
 
	
 
	
8,589
	
 
	
 
	
8,683
	
 
	
 
	
8,762
	
 

	
Tax Reserve before unamort DAC
	
 
	
228,521
	
 
	
 
	
240,899
	
 
	
 
	
253,589
	
 
	
 
	
266,241
	
 
	
 
	
276,522
	
 
	
 
	
283,815
	
 
	
 
	
289,457
	
 
	
 
	
293,074
	
 
	
 
	
294,622
	
 
	
 
	
292,064
	
 
	
 
	
287,285
	
 
	
 
	
280,564
	
 
	
 
	
271,342
	
 
	
 
	
253,046
	
 

	
Capital (Based on 300% RBC (i=5.70%))
	
 
	
7,198
	
 
	
 
	
7,588
	
 
	
 
	
7,988
	
 
	
 
	
8,387
	
 
	
 
	
8,710
	
 
	
 
	
8,940
	
 
	
 
	
9,118
	
 
	
 
	
9,232
	
 
	
 
	
9,281
	
 
	
 
	
9,200
	
 
	
 
	
9,049
	
 
	
 
	
8,838
	
 
	
 
	
8,547
	
 
	
 
	
7,971
	
 

	
Capital: After-Tax int less change (i=5.70%)
	
 
	
(129
	
)
	
 
	
(123
	
)
	
 
	
(119
	
)
	
 
	
(103
	
)
	
 
	
(13
	
)
	
 
	
93
	
 
	
 
	
154
	
 
	
 
	
224
	
 
	
 
	
293
	
 
	
 
	
424
	
 
	
 
	
491
	
 
	
 
	
547
	
 
	
 
	
618
	
 
	
 
	
893
	
 

	
PV's -- Primerica Retained Asset Account
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV PRE-TAX BOOK PROFIT
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV FEDERAL INCOME TAX
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV Capital: After-Tax int less change (i=5.70%) less Init Cap
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV After-Tax. After Cost of Capital
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

 

 

C-18

Milliman

 

 

	
017CIG0l\l5\0906
	
Puck(Rev) @06/30/09 - Baseline: Inforce External Res Financing@0.0% (Preliminary)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
10/21/09
	
 
	
 
	
 
	
 

	
From PUCK0906B.XLS
	
Line of Business Projection
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
06:01 PM
	
 
	
 
	
 
	
 

	
Baseline Production
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Future Business - 10 Years of New Business (000)
	
2026
	
 
	
2027
	
 
	
2028
	
 
	
2029
	
 
	
2030
	
 
	
2031
	
 
	
2032
	
 
	
2033
	
 
	
2034
	
 
	
2035
	
 
	
2036
	
 
	
2037
	
 
	
2038
	
 
	
2039
	
 

	
Total Future Business - Primerica
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
GROSS PREMIUMS
	
 
	
1,017,198
	
 
	
 
	
982,764
	
 
	
 
	
949,930
	
 
	
 
	
917,468
	
 
	
 
	
890,771
	
 
	
 
	
863,379
	
 
	
 
	
834,589
	
 
	
 
	
804,652
	
 
	
 
	
774,171
	
 
	
 
	
742,595
	
 
	
 
	
711,985
	
 
	
 
	
681,930
	
 
	
 
	
652,409
	
 
	
 
	
621,074
	
 

	
REINSURANCE PREMIUMS (NET OF ALLOWANCES)
	
 
	
(532,493
	
)
	
 
	
(557,392
	
)
	
 
	
(582,778
	
)
	
 
	
(607,560
	
)
	
 
	
(602,256
	
)
	
 
	
(592,554
	
)
	
 
	
(577,867
	
)
	
 
	
(556,565
	
)
	
 
	
(528,867
	
)
	
 
	
(500,207
	
)
	
 
	
(464,868
	
)
	
 
	
(422,051
	
)
	
 
	
(370,855
	
)
	
 
	
(298,853
	
)

	
GROSS INVESTMENT INCOME PLUS FEE INCOME
	
 
	
198,766
	
 
	
 
	
194,493
	
 
	
 
	
185,882
	
 
	
 
	
172,723
	
 
	
 
	
155,308
	
 
	
 
	
136,441
	
 
	
 
	
116,628
	
 
	
 
	
96,399
	
 
	
 
	
76,291
	
 
	
 
	
56,968
	
 
	
 
	
39,059
	
 
	
 
	
24,127
	
 
	
 
	
13,273
	
 
	
 
	
8,204
	
 

	
ACCRUAL OF DISCOUNT
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
AMORTIZATION OF IMR
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INVESTMENT EXPENSE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INCOME LOST ON DEFAULTS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL INCOME
	
 
	
683,471
	
 
	
 
	
619,865
	
 
	
 
	
553,034
	
 
	
 
	
482,630
	
 
	
 
	
443,822
	
 
	
 
	
407,266
	
 
	
 
	
373,350
	
 
	
 
	
344,486
	
 
	
 
	
321,595
	
 
	
 
	
299,356
	
 
	
 
	
286,176
	
 
	
 
	
284,006
	
 
	
 
	
294,827
	
 
	
 
	
330,426
	
 

	
NET SURRENDERS
	
 
	
10,763
	
 
	
 
	
10,148
	
 
	
 
	
9,523
	
 
	
 
	
9,263
	
 
	
 
	
11,437
	
 
	
 
	
14,163
	
 
	
 
	
15,462
	
 
	
 
	
17,078
	
 
	
 
	
18,684
	
 
	
 
	
22,261
	
 
	
 
	
23,882
	
 
	
 
	
25,182
	
 
	
 
	
27,011
	
 
	
 
	
36,601
	
 

	
HEALTH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
DIRECT DEATH BENEFITS
	
 
	
549,274
	
 
	
 
	
578,832
	
 
	
 
	
609,340
	
 
	
 
	
639,938
	
 
	
 
	
664,491
	
 
	
 
	
681,864
	
 
	
 
	
695,257
	
 
	
 
	
703,774
	
 
	
 
	
707,345
	
 
	
 
	
700,712
	
 
	
 
	
688,735
	
 
	
 
	
672,098
	
 
	
 
	
649,452
	
 
	
 
	
603,379
	
 

	
REINSURANCE DEATH BENEFITS
	
 
	
(451,225
	
)
	
 
	
(467,812
	
)
	
 
	
(484,840
	
)
	
 
	
(501,571
	
)
	
 
	
(499,606
	
)
	
 
	
(490,885
	
)
	
 
	
(478,475
	
)
	
 
	
(461,441
	
)
	
 
	
(439,534
	
)
	
 
	
(414,181
	
)
	
 
	
(386,233
	
)
	
 
	
(352,228
	
)
	
 
	
(311,442
	
)
	
 
	
(261,694
	
)

	
ACQUISITION EXPENSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
OTHER EXPENSES
	
 
	
72,043
	
 
	
 
	
69,929
	
 
	
 
	
68,002
	
 
	
 
	
66,174
	
 
	
 
	
64,352
	
 
	
 
	
62,324
	
 
	
 
	
60,171
	
 
	
 
	
57,874
	
 
	
 
	
55,445
	
 
	
 
	
53,062
	
 
	
 
	
50,786
	
 
	
 
	
48,420
	
 
	
 
	
45,942
	
 
	
 
	
43,197
	
 

	
NET COMMISSIONS
	
 
	
9,569
	
 
	
 
	
7,381
	
 
	
 
	
5,100
	
 
	
 
	
2,634
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
COST OF FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INCREASE IN LOADING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INCREASE IN RESERVES
	
 
	
(41,261
	
)
	
 
	
(117,634
	
)
	
 
	
(197,593
	
)
	
 
	
(282,707
	
)
	
 
	
(308,762
	
)
	
 
	
(328,067
	
)
	
 
	
(338,146
	
)
	
 
	
(339,055
	
)
	
 
	
(327,575
	
)
	
 
	
(308,905
	
)
	
 
	
(260,191
	
)
	
 
	
(192,520
	
)
	
 
	
(103,992
	
)
	
 
	
19,036
	
 

	
INCR IN RESERVE FINANCING LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL DISBURSEMENTS
	
 
	
149,163
	
 
	
 
	
80,843
	
 
	
 
	
9,531
	
 
	
 
	
(66,269
	
)
	
 
	
(68,088
	
)
	
 
	
(60,601
	
)
	
 
	
(45,731
	
)
	
 
	
(21,769
	
)
	
 
	
14,365
	
 
	
 
	
52,950
	
 
	
 
	
116,978
	
 
	
 
	
200,953
	
 
	
 
	
306,972
	
 
	
 
	
440,519
	
 

	
STATUTORY GAIN
	
 
	
534,307
	
 
	
 
	
539,021
	
 
	
 
	
543,503
	
 
	
 
	
548,900
	
 
	
 
	
511,910
	
 
	
 
	
467,867
	
 
	
 
	
419,081
	
 
	
 
	
366,255
	
 
	
 
	
307,230
	
 
	
 
	
246,405
	
 
	
 
	
169,198
	
 
	
 
	
83,054
	
 
	
 
	
(12,145
	
)
	
 
	
(110,093
	
)

	
CAPITAL GAINS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
GAIN ON CALLS AND ROLLOVER
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS DEFAULT LOSSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS IMR CAPITALIZATION
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
BOOK PROFIT
	
 
	
534,307
	
 
	
 
	
539,021
	
 
	
 
	
543,503
	
 
	
 
	
548,900
	
 
	
 
	
511,910
	
 
	
 
	
467,867
	
 
	
 
	
419,081
	
 
	
 
	
366,255
	
 
	
 
	
307,230
	
 
	
 
	
246,405
	
 
	
 
	
169,198
	
 
	
 
	
83,054
	
 
	
 
	
(12,145
	
)
	
 
	
(110,093
	
)

	
INCREASE IN SURPLUS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
FEDERAL INCOME TAX
	
 
	
180,445
	
 
	
 
	
181,323
	
 
	
 
	
182,377
	
 
	
 
	
184,077
	
 
	
 
	
172,259
	
 
	
 
	
157,631
	
 
	
 
	
141,074
	
 
	
 
	
122,987
	
 
	
 
	
102,676
	
 
	
 
	
81,596
	
 
	
 
	
54,901
	
 
	
 
	
25,128
	
 
	
 
	
(7,753
	
)
	
 
	
(39,518
	
)

	
PROFITS RELEASED
	
 
	
353,862
	
 
	
 
	
357,698
	
 
	
 
	
361,126
	
 
	
 
	
364,823
	
 
	
 
	
339,652
	
 
	
 
	
310,236
	
 
	
 
	
278,006
	
 
	
 
	
243,268
	
 
	
 
	
204,553
	
 
	
 
	
164,810
	
 
	
 
	
114,297
	
 
	
 
	
57,925
	
 
	
 
	
(4,392
	
)
	
 
	
(70,575
	
)

	
STATUTORY RESERVE (GA) (Canada=GAAP)
	
 
	
3,298,713
	
 
	
 
	
3,181,079
	
 
	
 
	
2,983,486
	
 
	
 
	
2,700,780
	
 
	
 
	
2,392,017
	
 
	
 
	
2,063,950
	
 
	
 
	
1,725,804
	
 
	
 
	
1,386,750
	
 
	
 
	
1,059,175
	
 
	
 
	
750,270
	
 
	
 
	
490,079
	
 
	
 
	
297,559
	
 
	
 
	
193,567
	
 
	
 
	
212,603
	
 

	
RESERVE FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL LIABILITY (GA)
	
 
	
3,298,713
	
 
	
 
	
3,181,079
	
 
	
 
	
2,983,486
	
 
	
 
	
2,700,780
	
 
	
 
	
2,392,017
	
 
	
 
	
2,063,950
	
 
	
 
	
1,725,804
	
 
	
 
	
1,386,750
	
 
	
 
	
1,059,175
	
 
	
 
	
750,270
	
 
	
 
	
490,079
	
 
	
 
	
297,559
	
 
	
 
	
193,567
	
 
	
 
	
212,603
	
 

	
SEPARATE ACCOUNT LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TAX RESERVE (GA)
	
 
	
2,850,281
	
 
	
 
	
2,753,602
	
 
	
 
	
2,578,436
	
 
	
 
	
2,318,694
	
 
	
 
	
2,029,674
	
 
	
 
	
1,719,101
	
 
	
 
	
1,396,967
	
 
	
 
	
1,072,775
	
 
	
 
	
759,069
	
 
	
 
	
463,439
	
 
	
 
	
215,586
	
 
	
 
	
34,325
	
 
	
 
	
(59,660
	
)
	
 
	
(37,809
	
)

	
INTEREST MAINTENANCE RESERVE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
POLICIES IN FORCE (UNSCALED)
	
 
	
866,154
	
 
	
 
	
818,273
	
 
	
 
	
774,374
	
 
	
 
	
733,053
	
 
	
 
	
691,844
	
 
	
 
	
651,026
	
 
	
 
	
610,141
	
 
	
 
	
568,931
	
 
	
 
	
527,312
	
 
	
 
	
491,149
	
 
	
 
	
455,183
	
 
	
 
	
418,967
	
 
	
 
	
382,247
	
 
	
 
	
325,504
	
 

	
INSURANCE IN FORCE (NET)
	
 
	
52,878,891
	
 
	
 
	
51,737,194
	
 
	
 
	
50,738,940
	
 
	
 
	
49,842,996
	
 
	
 
	
49,253,923
	
 
	
 
	
48,585,599
	
 
	
 
	
47,788,710
	
 
	
 
	
46,920,603
	
 
	
 
	
46,032,503
	
 
	
 
	
44,320,455
	
 
	
 
	
42,781,710
	
 
	
 
	
41,287,209
	
 
	
 
	
39,832,045
	
 
	
 
	
36,813,806
	
 

	
CASH VALUE IN FORCE
	
 
	
24,960
	
 
	
 
	
23,438
	
 
	
 
	
22,004
	
 
	
 
	
20,616
	
 
	
 
	
20,229
	
 
	
 
	
19,862
	
 
	
 
	
19,516
	
 
	
 
	
19,167
	
 
	
 
	
18,823
	
 
	
 
	
19,009
	
 
	
 
	
19,350
	
 
	
 
	
19,841
	
 
	
 
	
20,450
	
 
	
 
	
19,672
	
 

	
ECONOMIC RESERVE (Canada=GAAP)
	
 
	
1,318,759
	
 
	
 
	
1,489,742
	
 
	
 
	
1,607,210
	
 
	
 
	
1,668,825
	
 
	
 
	
1,698,435
	
 
	
 
	
1,695,460
	
 
	
 
	
1,662,308
	
 
	
 
	
1,602,721
	
 
	
 
	
1,519,988
	
 
	
 
	
1,418,842
	
 
	
 
	
1,308,112
	
 
	
 
	
1,193,845
	
 
	
 
	
1,083,120
	
 
	
 
	
985,562
	
 

	
EXCESS RESERVE (STAT LESS ECON)
	
 
	
1,751,433
	
 
	
 
	
1,450,438
	
 
	
 
	
1,122,687
	
 
	
 
	
765,714
	
 
	
 
	
417,060
	
 
	
 
	
84,675
	
 
	
 
	
(225,960
	
)
	
 
	
(509,045
	
)
	
 
	
(755,435
	
)
	
 
	
(960,636
	
)
	
 
	
(1,105,317
	
)
	
 
	
(1,176,850
	
)
	
 
	
(1,160,894
	
)
	
 
	
(1,026,004
	
)

	
EXCESS RESERVE (STAT less ECON Floored at Zero)
	
 
	
1,695,517
	
 
	
 
	
1,421,530
	
 
	
 
	
1,110,281
	
 
	
 
	
759,304
	
 
	
 
	
410,180
	
 
	
 
	
77,290
	
 
	
 
	
(233,888
	
)
	
 
	
(517,555
	
)
	
 
	
(761,428
	
)
	
 
	
(967,109
	
)
	
 
	
(1,112,308
	
)
	
 
	
(1,184,400
	
)
	
 
	
(1,176,626
	
)
	
 
	
(1,034,113
	
)

	
GROSS DEFERRED PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
NET DEFERRED PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
PV AT 9.00% PROFITS RELEASED
	
 
	
167,906
	
 
	
 
	
243,736
	
 
	
 
	
313,971
	
 
	
 
	
379,066
	
 
	
 
	
434,667
	
 
	
 
	
481,259
	
 
	
 
	
519,563
	
 
	
 
	
550,313
	
 
	
 
	
574,035
	
 
	
 
	
591,569
	
 
	
 
	
602,725
	
 
	
 
	
607,913
	
 
	
 
	
607,552
	
 
	
 
	
602,232
	
 

	
PV AT 11.00% PROFITS RELEASED
	
 
	
40,781
	
 
	
 
	
95,446
	
 
	
 
	
145,165
	
 
	
 
	
190,415
	
 
	
 
	
228,368
	
 
	
 
	
259,599
	
 
	
 
	
284,813
	
 
	
 
	
304,689
	
 
	
 
	
319,746
	
 
	
 
	
330,675
	
 
	
 
	
337,503
	
 
	
 
	
340,621
	
 
	
 
	
340,408
	
 
	
 
	
337,325
	
 

	
PV AT 13.00% PROFITS RELEASED
	
 
	
(51,839
	
)
	
 
	
(12,202
	
)
	
 
	
23,212
	
 
	
 
	
54,872
	
 
	
 
	
80,956
	
 
	
 
	
102,041
	
 
	
 
	
118,762
	
 
	
 
	
131,710
	
 
	
 
	
141,345
	
 
	
 
	
148,214
	
 
	
 
	
152,430
	
 
	
 
	
154,321
	
 
	
 
	
154,195
	
 
	
 
	
152,390
	
 

	
PV AT 9.00% BOOK PROFITS
	
 
	
424,596
	
 
	
 
	
538,866
	
 
	
 
	
644,571
	
 
	
 
	
742,512
	
 
	
 
	
826,311
	
 
	
 
	
896,576
	
 
	
 
	
954,317
	
 
	
 
	
1,000,614
	
 
	
 
	
1,036,242
	
 
	
 
	
1,062,458
	
 
	
 
	
1,078,973
	
 
	
 
	
1,086,410
	
 
	
 
	
1,085,413
	
 
	
 
	
1,077,115
	
 

	
PV AT 11.00% BOOK PROFITS
	
 
	
216,201
	
 
	
 
	
298,576
	
 
	
 
	
373,404
	
 
	
 
	
441,486
	
 
	
 
	
498,688
	
 
	
 
	
545,788
	
 
	
 
	
583,795
	
 
	
 
	
613,720
	
 
	
 
	
636,335
	
 
	
 
	
652,675
	
 
	
 
	
662,783
	
 
	
 
	
667,253
	
 
	
 
	
666,664
	
 
	
 
	
661,855
	
 

	
PV AT 13.00% BOOK PROFITS
	
 
	
62,155
	
 
	
 
	
121,885
	
 
	
 
	
175,184
	
 
	
 
	
222,818
	
 
	
 
	
262,132
	
 
	
 
	
293,930
	
 
	
 
	
319,135
	
 
	
 
	
338,629
	
 
	
 
	
353,101
	
 
	
 
	
363,371
	
 
	
 
	
369,613
	
 
	
 
	
372,324
	
 
	
 
	
371,973
	
 
	
 
	
369,159
	
 

	
PV AT 9.00% FEDERAL INCOME TAX
	
 
	
256,691
	
 
	
 
	
295,130
	
 
	
 
	
330,600
	
 
	
 
	
363,445
	
 
	
 
	
391,644
	
 
	
 
	
415,317
	
 
	
 
	
434,755
	
 
	
 
	
450,301
	
 
	
 
	
462,208
	
 
	
 
	
470,889
	
 
	
 
	
476,248
	
 
	
 
	
478,498
	
 
	
 
	
477,861
	
 
	
 
	
474,883
	
 

	
PV AT 11.00% FEDERAL INCOME TAX
	
 
	
175,420
	
 
	
 
	
203,130
	
 
	
 
	
228,239
	
 
	
 
	
251,071
	
 
	
 
	
270,320
	
 
	
 
	
286,188
	
 
	
 
	
298,982
	
 
	
 
	
309,031
	
 
	
 
	
316,589
	
 
	
 
	
322,000
	
 
	
 
	
325,280
	
 
	
 
	
326,632
	
 
	
 
	
326,256
	
 
	
 
	
324,530
	
 

	
PV AT 13.00% FEDERAL INCOME TAX
	
 
	
113,995
	
 
	
 
	
134,087
	
 
	
 
	
151,972
	
 
	
 
	
167,947
	
 
	
 
	
181,176
	
 
	
 
	
191,889
	
 
	
 
	
200,374
	
 
	
 
	
206,920
	
 
	
 
	
211,756
	
 
	
 
	
215,157
	
 
	
 
	
217,182
	
 
	
 
	
218,003
	
 
	
 
	
217,779
	
 
	
 
	
216,768
	
 

	
Tax Reserve before unamort DAC
	
 
	
3,268,181
	
 
	
 
	
3,153,519
	
 
	
 
	
2,959,049
	
 
	
 
	
2,680,267
	
 
	
 
	
2,374,636
	
 
	
 
	
2,049,373
	
 
	
 
	
1,713,923
	
 
	
 
	
1,377,493
	
 
	
 
	
1,052,420
	
 
	
 
	
745,818
	
 
	
 
	
487,618
	
 
	
 
	
296,622
	
 
	
 
	
193,509
	
 
	
 
	
207,406
	
 

	
Capital (Based on 300% RBC (i=5.70%))
	
 
	
227,700
	
 
	
 
	
220,654
	
 
	
 
	
211,467
	
 
	
 
	
199,857
	
 
	
 
	
188,189
	
 
	
 
	
175,792
	
 
	
 
	
162,842
	
 
	
 
	
149,704
	
 
	
 
	
136,852
	
 
	
 
	
123,456
	
 
	
 
	
111,806
	
 
	
 
	
102,289
	
 
	
 
	
95,528
	
 
	
 
	
90,398
	
 

	
Capitol: After-Tax int leas change (i=5.70%)
	
 
	
13,725
	
 
	
 
	
15,483
	
 
	
 
	
17,362
	
 
	
 
	
19,445
	
 
	
 
	
19,073
	
 
	
 
	
19,370
	
 
	
 
	
19,463
	
 
	
 
	
19,172
	
 
	
 
	
18,398
	
 
	
 
	
18,467
	
 
	
 
	
16,224
	
 
	
 
	
13,659
	
 
	
 
	
10,551
	
 
	
 
	
8,670
	
 

	
PV's -- Total Future Business - Primerica
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV PRE-TAX BOOK PROFIT
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV FEDERAL INCOME TAX
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV Capital: After-Tax int less change (i=5.70%) less Init Cap
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV After-Tax, After Cost of Capital
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

C-19

Milliman

 

 

	
017CIG01\15\0906
	
Puck(Rev) @06/30/09 - Baseline: Inforce External Res Financing@0.0% (Preliminary)
	
 
	
 
	
 
	
 
	
10/21/09
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
From PUCK0906B.XLS
	
Line of Business Projection
	
 
	
 
	
 
	
 
	
06:01 PM
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Baseline Production
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Future Business - 10 Years of New Business (000)
	
2009
	
 
	
2010
	
 
	
2011
	
 
	
2012
	
 
	
2013
	
 
	
2014
	
 
	
2015
	
 
	
2016
	
 
	
2017
	
 
	
2018
	
 
	
2019
	
 
	
2020
	
 
	
2021
	
 
	
2022
	
 
	
2023
	
 
	
2024
	
 
	
2025
	
 

	
Total Future Business - Primerica
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
GROSS PREMIUMS
	
 
	
—
	
 
	
 
	
89,928
	
 
	
 
	
232,449
	
 
	
 
	
365,360
	
 
	
 
	
496,185
	
 
	
 
	
628,194
	
 
	
 
	
764,465
	
 
	
 
	
907,182
	
 
	
 
	
1,057,588
	
 
	
 
	
1,216,992
	
 
	
 
	
1,386,900
	
 
	
 
	
1,383,273
	
 
	
 
	
1,279,569
	
 
	
 
	
1,204,818
	
 
	
 
	
1,145,361
	
 
	
 
	
1,095,640
	
 
	
 
	
1,054,119
	
 

	
REINSURANCE PREMIUMS (NET OF ALLOWANCE:
	
 
	
—
	
 
	
 
	
(12,833
	
)
	
 
	
(33,639
	
)
	
 
	
(58,686
	
)
	
 
	
(87,461
	
)
	
 
	
(120,182
	
)
	
 
	
(156,975
	
)
	
 
	
(198,470
	
)
	
 
	
(245,011
	
)
	
 
	
(297,368
	
)
	
 
	
(356,622
	
)
	
 
	
(390,051
	
)
	
 
	
(413,992
	
)
	
 
	
(436,750
	
)
	
 
	
(460,565
	
)
	
 
	
(485,309
	
)
	
 
	
(508,567
	
)

	
GROSS INVESTMENT INCOME PLUS FEE INCOME
	
 
	
—
	
 
	
 
	
(5,323
	
)
	
 
	
(3,018
	
)
	
 
	
1,997
	
 
	
 
	
9,686
	
 
	
 
	
19,939
	
 
	
 
	
32,491
	
 
	
 
	
47,312
	
 
	
 
	
64,302
	
 
	
 
	
83,307
	
 
	
 
	
104,187
	
 
	
 
	
138,009
	
 
	
 
	
158,279
	
 
	
 
	
174,660
	
 
	
 
	
186,937
	
 
	
 
	
194,997
	
 
	
 
	
198,842
	
 

	
ACCRUAL OF DISCOUNT
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
AMORTIZATION OF IMR
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INVESTMENT EXPENSE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS INCOME LOST ON DEFAULTS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL INCOME
	
 
	
—
	
 
	
 
	
71,773
	
 
	
 
	
195,792
	
 
	
 
	
308,672
	
 
	
 
	
418,410
	
 
	
 
	
527,952
	
 
	
 
	
639,981
	
 
	
 
	
756,024
	
 
	
 
	
876,879
	
 
	
 
	
1,002,931
	
 
	
 
	
1,134,465
	
 
	
 
	
1,131,231
	
 
	
 
	
1,023,857
	
 
	
 
	
942,727
	
 
	
 
	
871,733
	
 
	
 
	
805,328
	
 
	
 
	
744,394
	
 

	
NET SURRENDERS
	
 
	
—
	
 
	
 
	
(4,652
	
)
	
 
	
(6,033
	
)
	
 
	
(3,800
	
)
	
 
	
(2,771
	
)
	
 
	
(1,778
	
)
	
 
	
(767
	
)
	
 
	
205
	
 
	
 
	
1,203
	
 
	
 
	
2,173
	
 
	
 
	
2,989
	
 
	
 
	
13,745
	
 
	
 
	
18,498
	
 
	
 
	
15,329
	
 
	
 
	
14,335
	
 
	
 
	
13,437
	
 
	
 
	
11,594
	
 

	
HEALTH BENEFITS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
DIRECT DEATH BENEFITS
	
 
	
—
	
 
	
 
	
15,777
	
 
	
 
	
41,650
	
 
	
 
	
68,111
	
 
	
 
	
98,212
	
 
	
 
	
132,184
	
 
	
 
	
170,233
	
 
	
 
	
212,807
	
 
	
 
	
260,267
	
 
	
 
	
313,188
	
 
	
 
	
372,516
	
 
	
 
	
405,658
	
 
	
 
	
423,028
	
 
	
 
	
445,834
	
 
	
 
	
469,131
	
 
	
 
	
493,074
	
 
	
 
	
520,544
	
 

	
REINSURANCE DEATH BENEFITS
	
 
	
—
	
 
	
 
	
(12,244
	
)
	
 
	
(33,130
	
)
	
 
	
(55,639
	
)
	
 
	
(81,686
	
)
	
 
	
(111,280
	
)
	
 
	
(144,548
	
)
	
 
	
(181,846
	
)
	
 
	
(223,507
	
)
	
 
	
(270,042
	
)
	
 
	
(322,279
	
)
	
 
	
(351,872
	
)
	
 
	
(366,496
	
)
	
 
	
(383,948
	
)
	
 
	
(401,057
	
)
	
 
	
(418,287
	
)
	
 
	
(435,210
	
)

	
ACQUISITION EXPENSES
	
 
	
—
	
 
	
 
	
55,379
	
 
	
 
	
59,255
	
 
	
 
	
63,403
	
 
	
 
	
67,842
	
 
	
 
	
72,590
	
 
	
 
	
78,398
	
 
	
 
	
84,670
	
 
	
 
	
91,443
	
 
	
 
	
98,759
	
 
	
 
	
106,659
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
OTHER EXPENSES
	
 
	
—
	
 
	
 
	
6,089
	
 
	
 
	
15,916
	
 
	
 
	
25,036
	
 
	
 
	
34,027
	
 
	
 
	
43,138
	
 
	
 
	
52,576
	
 
	
 
	
62,491
	
 
	
 
	
72,969
	
 
	
 
	
84,098
	
 
	
 
	
95,983
	
 
	
 
	
95,961
	
 
	
 
	
88,814
	
 
	
 
	
83,894
	
 
	
 
	
80,117
	
 
	
 
	
77,045
	
 
	
 
	
74,410
	
 

	
NET COMMISSIONS
	
 
	
—
	
 
	
 
	
203,504
	
 
	
 
	
242,958
	
 
	
 
	
262,178
	
 
	
 
	
282,306
	
 
	
 
	
303,562
	
 
	
 
	
329,022
	
 
	
 
	
356,750
	
 
	
 
	
386,640
	
 
	
 
	
418,885
	
 
	
 
	
453,713
	
 
	
 
	
68,013
	
 
	
 
	
20,956
	
 
	
 
	
17,981
	
 
	
 
	
15,696
	
 
	
 
	
13,826
	
 
	
 
	
11,722
	
 

	
COST OF FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INCREASE IN LOADING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
INCREASE IN RESERVES
	
 
	
—
	
 
	
 
	
7,950
	
 
	
 
	
53,399
	
 
	
 
	
103,184
	
 
	
 
	
150,485
	
 
	
 
	
193,705
	
 
	
 
	
234,502
	
 
	
 
	
273,095
	
 
	
 
	
308,931
	
 
	
 
	
342,245
	
 
	
 
	
372,856
	
 
	
 
	
396,085
	
 
	
 
	
333,279
	
 
	
 
	
256,595
	
 
	
 
	
179,064
	
 
	
 
	
101,844
	
 
	
 
	
32,755
	
 

	
INCR IN RESERVE FINANCING LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL DISBURSEMENTS
	
 
	
—
	
 
	
 
	
271,802
	
 
	
 
	
374,015
	
 
	
 
	
462,474
	
 
	
 
	
548,413
	
 
	
 
	
632,122
	
 
	
 
	
719,416
	
 
	
 
	
808,171
	
 
	
 
	
897,946
	
 
	
 
	
989,306
	
 
	
 
	
1,082,437
	
 
	
 
	
627,591
	
 
	
 
	
518,079
	
 
	
 
	
435,685
	
 
	
 
	
357,286
	
 
	
 
	
280,938
	
 
	
 
	
215,815
	
 

	
STATUTORY GAIN
	
 
	
—
	
 
	
 
	
(200,029
	
)
	
 
	
(178,222
	
)
	
 
	
(153,803
	
)
	
 
	
(130,003
	
)
	
 
	
(104,170
	
)
	
 
	
(79,435
	
)
	
 
	
(52,147
	
)
	
 
	
(21,067
	
)
	
 
	
13,625
	
 
	
 
	
52,028
	
 
	
 
	
503,640
	
 
	
 
	
505,778
	
 
	
 
	
507,042
	
 
	
 
	
514,447
	
 
	
 
	
524,389
	
 
	
 
	
528,579
	
 

	
CAPITAL GAINS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
GAIN ON CALLS AND ROLLOVER
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS DEFAULT LOSSES
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
LESS IMR CAPITALIZATION
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
BOOK PROFIT
	
 
	
—
	
 
	
 
	
(200,029
	
)
	
 
	
(178,222
	
)
	
 
	
(153,803
	
)
	
 
	
(130,003
	
)
	
 
	
(104,170
	
)
	
 
	
(79,435
	
)
	
 
	
(52,147
	
)
	
 
	
(21,067
	
)
	
 
	
13,625
	
 
	
 
	
52,028
	
 
	
 
	
503,640
	
 
	
 
	
505,778
	
 
	
 
	
507,042
	
 
	
 
	
514,447
	
 
	
 
	
524,389
	
 
	
 
	
528,579
	
 

	
INCREASE IN SURPLUS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
FEDERAL INCOME TAX
	
 
	
—
	
 
	
 
	
(55,948
	
)
	
 
	
(45,758
	
)
	
 
	
(37,289
	
)
	
 
	
(28,526
	
)
	
 
	
(18,708
	
)
	
 
	
(8,599
	
)
	
 
	
2,532
	
 
	
 
	
14,966
	
 
	
 
	
28,614
	
 
	
 
	
43,493
	
 
	
 
	
173,643
	
 
	
 
	
170,240
	
 
	
 
	
172,150
	
 
	
 
	
175,297
	
 
	
 
	
178,752
	
 
	
 
	
179,382
	
 

	
PROFITS RELEASED
	
 
	
—
	
 
	
 
	
(144,081
	
)
	
 
	
(132,465
	
)
	
 
	
(116,514
	
)
	
 
	
(101,477
	
)
	
 
	
(85,462
	
)
	
 
	
(70,836
	
)
	
 
	
(54,679
	
)
	
 
	
(36,033
	
)
	
 
	
(14,989
	
)
	
 
	
8,535
	
 
	
 
	
329,997
	
 
	
 
	
335,538
	
 
	
 
	
334,892
	
 
	
 
	
339,149
	
 
	
 
	
345,637
	
 
	
 
	
349,197
	
 

	
STATUTORY RESERVE (GA) (Canada=GAAP)
	
 
	
—
	
 
	
 
	
7,950
	
 
	
 
	
61,349
	
 
	
 
	
164,533
	
 
	
 
	
315,018
	
 
	
 
	
508,723
	
 
	
 
	
743,225
	
 
	
 
	
1,016,319
	
 
	
 
	
1,325,251
	
 
	
 
	
1,667,496
	
 
	
 
	
2,040,352
	
 
	
 
	
2,436,437
	
 
	
 
	
2,769,716
	
 
	
 
	
3,026,311
	
 
	
 
	
3,205,375
	
 
	
 
	
3,307,219
	
 
	
 
	
3,339,974
	
 

	
RESERVE FINANCING
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TOTAL LIABILITY (GA)
	
 
	
—
	
 
	
 
	
7,950
	
 
	
 
	
61,349
	
 
	
 
	
164,533
	
 
	
 
	
315,018
	
 
	
 
	
508,723
	
 
	
 
	
743,225
	
 
	
 
	
1,016,319
	
 
	
 
	
1,325,251
	
 
	
 
	
1,667,496
	
 
	
 
	
2,040,352
	
 
	
 
	
2,436,437
	
 
	
 
	
2,769,716
	
 
	
 
	
3,026,311
	
 
	
 
	
3,205,375
	
 
	
 
	
3,307,219
	
 
	
 
	
3,339,974
	
 

	
SEPARATE ACCOUNT LIABILITY
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
TAX RESERVE (GA)
	
 
	
—
	
 
	
 
	
(32,228
	
)
	
 
	
(26,316
	
)
	
 
	
29,606
	
 
	
 
	
131,590
	
 
	
 
	
274,578
	
 
	
 
	
454,214
	
 
	
 
	
667,928
	
 
	
 
	
913,033
	
 
	
 
	
1,187,148
	
 
	
 
	
1,487,766
	
 
	
 
	
1,891,368
	
 
	
 
	
2,244,025
	
 
	
 
	
2,515,804
	
 
	
 
	
2,708,465
	
 
	
 
	
2,823,978
	
 
	
 
	
2,872,793
	
 

	
INTEREST MAINTENANCE RESERVE
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
POLICIES IN FORCE (UNSCALED)
	
 
	
—
	
 
	
 
	
176,502
	
 
	
 
	
325,856
	
 
	
 
	
466,403
	
 
	
 
	
604,195
	
 
	
 
	
742,393
	
 
	
 
	
884,955
	
 
	
 
	
1,033,160
	
 
	
 
	
1,188,303
	
 
	
 
	
1,351,747
	
 
	
 
	
1,524,960
	
 
	
 
	
1,337,927
	
 
	
 
	
1,215,630
	
 
	
 
	
1,121,626
	
 
	
 
	
1,044,601
	
 
	
 
	
979,013
	
 
	
 
	
919,285
	
 

	
INSURANCE IN FORCE (NET)
	
 
	
—
	
 
	
 
	
7,875,822
	
 
	
 
	
14,810,402
	
 
	
 
	
21,495,369
	
 
	
 
	
28,156,663
	
 
	
 
	
34,920,372
	
 
	
 
	
41,967,737
	
 
	
 
	
49,354,757
	
 
	
 
	
57,136,816
	
 
	
 
	
65,379,333
	
 
	
 
	
74,149,576
	
 
	
 
	
67,647,445
	
 
	
 
	
63,447,349
	
 
	
 
	
60,273,708
	
 
	
 
	
57,759,208
	
 
	
55,688,557
	
 
	
 
	
54,190,389
	
 

	
CASH VALUE IN FORCE
	
 
	
—
	
 
	
 
	
2,122
	
 
	
 
	
6,058
	
 
	
 
	
9,816
	
 
	
 
	
13,515
	
 
	
 
	
17,232
	
 
	
 
	
21,034
	
 
	
 
	
24,984
	
 
	
 
	
29,116
	
 
	
 
	
33,461
	
 
	
 
	
38,062
	
 
	
 
	
38,384
	
 
	
 
	
35,136
	
 
	
 
	
32,497
	
 
	
 
	
30,274
	
 
	
 
	
28,332
	
 
	
 
	
26,591
	
 

	
ECONOMIC RESERVE (Canada=GAAP)
	
 
	
—
	
 
	
 
	
(281,506
	
)
	
 
	
(531,711
	
)
	
 
	
(739,215
	
)
	
 
	
(909,981
	
)
	
 
	
(1,048,685
	
)
	
 
	
(1,162,659
	
)
	
 
	
(1,254,918
	
)
	
 
	
(1,327,629
	
)
	
 
	
(1,382,654
	
)
	
 
	
(1,421,961
	
)
	
 
	
(857,313
	
)
	
 
	
(337,777
	
)
	
 
	
110,002
	
 
	
 
	
494,479
	
 
	
 
	
821,306
	
 
	
 
	
1,095,873
	
 

	
EXCESS RESERVE (STAT LESS ECON)
	
 
	
—
	
 
	
 
	
283,203
	
 
	
 
	
576,498
	
 
	
 
	
876,516
	
 
	
 
	
1,185,562
	
 
	
 
	
1,504,141
	
 
	
 
	
1,837,066
	
 
	
 
	
2,184,958
	
 
	
 
	
2,547,075
	
 
	
 
	
2,922,522
	
 
	
 
	
3,310,172
	
 
	
 
	
3,127,378
	
 
	
 
	
2,933,176
	
 
	
 
	
2,732,035
	
 
	
 
	
2,516,510
	
 
	
 
	
2,281,178
	
 
	
 
	
2,027,688
	
 

	
EXCESS RESERVE (STAT less ECON Floored at Zero)
	
 
	
—
	
 
	
 
	
1,697
	
 
	
 
	
44,786
	
 
	
 
	
137,301
	
 
	
 
	
275,581
	
 
	
 
	
455,456
	
 
	
 
	
672,030
	
 
	
 
	
907,961
	
 
	
 
	
1,155,762
	
 
	
 
	
1,412,639
	
 
	
 
	
1,675,104
	
 
	
 
	
1,947,666
	
 
	
 
	
2,138,890
	
 
	
 
	
2,228,580
	
 
	
 
	
2,220,417
	
 
	
 
	
2,115,876
	
 
	
 
	
1,930,827
	
 

	
GROSS DEFERRED PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
NET DEFERRED PREMIUMS
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 
	
 
	
—
	
 

	
PV AT 9.00% PROFITS RELEASED
	
 
	
—
	
 
	
 
	
(132,185
	
)
	
 
	
(243,678
	
)
	
 
	
(333,648
	
)
	
 
	
(405,536
	
)
	
 
	
(461,081
	
)
	
 
	
(503,318
	
)
	
 
	
(533,229
	
)
	
 
	
(551,313
	
)
	
 
	
(558,214
	
)
	
 
	
(554,609
	
)
	
 
	
(426,724
	
)
	
 
	
(307,429
	
)
	
 
	
(198,194
	
)
	
 
	
(96,705
	
)
	
 
	
(1,814
	
)
	
 
	
86,138
	
 

	
PV AT 11.00% PROFITS RELEASED
	
 
	
—
	
 
	
 
	
(129,803
	
)
	
 
	
(237,314
	
)
	
 
	
(322,508
	
)
	
 
	
(389,354
	
)
	
 
	
(440,072
	
)
	
 
	
(477,943
	
)
	
 
	
(504,280
	
)
	
 
	
(519,915
	
)
	
 
	
(525,775
	
)
	
 
	
(522,769
	
)
	
 
	
(418,067
	
)
	
 
	
(322,156
	
)
	
 
	
(235,917
	
)
	
 
	
(157,236
	
)
	
 
	
(84,996
	
)
	
 
	
(19,245
	
)

	
PV AT 13.00% PROFITS RELEASED
	
 
	
—
	
 
	
 
	
(127,505
	
)
	
 
	
(231,245
	
)
	
 
	
(311,995
	
)
	
 
	
(374,232
	
)
	
 
	
(420,618
	
)
	
 
	
(454,641
	
)
	
 
	
(477,883
	
)
	
 
	
(491,437
	
)
	
 
	
(496,427
	
)
	
 
	
(493,913
	
)
	
 
	
(407,883
	
)
	
 
	
(330,473
	
)
	
 
	
(262,100
	
)
	
 
	
(200,823
	
)
	
 
	
(145,559
	
)
	
 
	
(96,149
	
)

	
PV AT 9.00% BOOK PROFITS
	
 
	
9.0
	
%
	
 
	
(183,513
	
)
	
 
	
(333,519
	
)
	
 
	
(452,283
	
)
	
 
	
(544,380
	
)
	
 
	
(612,084
	
)
	
 
	
(659,448
	
)
	
 
	
(687,975
	
)
	
 
	
(698,547
	
)
	
 
	
(692,274
	
)
	
 
	
(670,297
	
)
	
 
	
(475,120
	
)
	
 
	
(295,298
	
)
	
 
	
(129,912
	
)
	
 
	
24,035
	
 
	
 
	
167,999
	
 
	
 
	
301,132
	
 

	
PV AT 11.00% BOOK PROFITS
	
 
	
11.0
	
%
	
 
	
(180,206
	
)
	
 
	
(324,856
	
)
	
 
	
(437,315
	
)
	
 
	
(522,952
	
)
	
 
	
(584,772
	
)
	
 
	
(627,241
	
)
	
 
	
(652,358
	
)
	
 
	
(661,500
	
)
	
 
	
(656,173
	
)
	
 
	
(637,850
	
)
	
 
	
(478,053
	
)
	
 
	
(333,481
	
)
	
 
	
(202,911
	
)
	
 
	
(83,562
	
)
	
 
	
26,038
	
 
	
 
	
125,565
	
 

	
PV AT 13.00% BOOK PROFITS
	
 
	
13.0
	
%
	
 
	
(177,017
	
)
	
 
	
(316,591
	
)
	
 
	
(423,184
	
)
	
 
	
(502,917
	
)
	
 
	
(559,457
	
)
	
 
	
(597,611
	
)
	
 
	
(619,777
	
)
	
 
	
(627,701
	
)
	
 
	
(623,166
	
)
	
 
	
(607,839
	
)
	
 
	
(476,541
	
)
	
 
	
(359,855
	
)
	
 
	
(256,335
	
)
	
 
	
(163,386
	
)
	
 
	
(79,541
	
)
	
 
	
(4,750
	
)

	
PV AT 9.00% FEDERAL INCOME TAX
	
 
	
9.0
	
%
	
 
	
(51,328
	
)
	
 
	
(89,842
	
)
	
 
	
(118,635
	
)
	
 
	
(138,844
	
)
	
 
	
(151,003
	
)
	
 
	
(156,131
	
)
	
 
	
(154,746
	
)
	
 
	
(147,235
	
)
	
 
	
(134,060
	
)
	
 
	
(115,688
	
)
	
 
	
(48,396
	
)
	
 
	
12,131
	
 
	
 
	
68,282
	
 
	
 
	
120,739
	
 
	
 
	
169,814
	
 
	
 
	
214,995
	
 

	
PV AT 11.00% FEDERAL INCOME TAX
	
 
	
11.0
	
%
	
 
	
(50,404
	
)
	
 
	
(87,541
	
)
	
 
	
(114,807
	
)
	
 
	
(133,598
	
)
	
 
	
(144,700
	
)
	
 
	
(149,298
	
)
	
 
	
(148,078
	
)
	
 
	
(141,584
	
)
	
 
	
(130,398
	
)
	
 
	
(115,081
	
)
	
 
	
(59,987
	
)
	
 
	
(11,325
	
)
	
 
	
33,006
	
 
	
 
	
73,674
	
 
	
 
	
111,034
	
 
	
 
	
144,810
	
 

	
PV AT 13.00% FEDERAL INCOME TAX
	
 
	
13.0
	
%
	
 
	
(49,511
	
)
	
 
	
(85,346
	
)
	
 
	
(111,189
	
)
	
 
	
(128,685
	
)
	
 
	
(138,839
	
)
	
 
	
(142,969
	
)
	
 
	
(141,893
	
)
	
 
	
(136,264
	
)
	
 
	
(126,738
	
)
	
 
	
(113,926
	
)
	
 
	
(68,658
	
)
	
 
	
(29,382
	
)
	
 
	
5,765
	
 
	
 
	
37,437
	
 
	
 
	
66,018
	
 
	
 
	
91,400
	
 

	
Tax Reserve before unamort DAC
	
 
	
—
	
 
	
 
	
(25,692
	
)
	
 
	
(3,502
	
)
	
 
	
76,449
	
 
	
 
	
209,043
	
 
	
 
	
388,292
	
 
	
 
	
609,131
	
 
	
 
	
868,390
	
 
	
 
	
1,162,828
	
 
	
 
	
1,489,533
	
 
	
 
	
1,845,497
	
 
	
 
	
2,293,827
	
 
	
 
	
2,673,824
	
 
	
 
	
2,959,889
	
 
	
 
	
3,156,408
	
 
	
 
	
3,267,503
	
 
	
 
	
3,305,759
	
 

	
Capital (Based on 300% RBC (i=5.70%))
	
 
	
—
	
 
	
 
	
15,568
	
 
	
 
	
34,484
	
 
	
 
	
54,016
	
 
	
 
	
74,824
	
 
	
 
	
97,142
	
 
	
 
	
121,309
	
 
	
 
	
147,460
	
 
	
 
	
175,657
	
 
	
 
	
205,983
	
 
	
 
	
238,534
	
 
	
 
	
242,120
	
 
	
 
	
240,694
	
 
	
 
	
239,982
	
 
	
 
	
238,674
	
 
	
 
	
236,174
	
 
	
 
	
232,801
	
 

	
Capital: After-Tax int less change (i=5.70%)
	
 
	
 
	
 
	
 
	
(15,568
	
)
	
 
	
(18,340
	
)
	
 
	
(18,254
	
)
	
 
	
(18,808
	
)
	
 
	
(19,546
	
)
	
 
	
(20,568
	
)
	
 
	
(21,657
	
)
	
 
	
(22,733
	
)
	
 
	
(23,819
	
)
	
 
	
(24,919
	
)
	
 
	
5,252
	
 
	
 
	
10,396
	
 
	
 
	
9,630
	
 
	
 
	
10,199
	
 
	
 
	
11,342
	
 
	
 
	
12,124
	
 

	
PV's -- Total Future Business - Primerica
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
9.00
	
%
	
 
	
11.00
	
%
	
 
	
13.00
	
%
	
 
	
15.00
	
%
	
 
	
20.00
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV PRE-TAX BOOK PROFIT
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
1,040,410
	
 
	
 
	
641,974
	
 
	
 
	
358,257
	
 
	
 
	
155,628
	
 
	
 
	
(133,118
	
)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV FEDERAL INCOME TAX
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
(461,892
	
)
	
 
	
(317,480
	
)
	
 
	
(212,895
	
)
	
 
	
(136,700
	
)
	
 
	
(23,480
	
)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV Capital: After-Tax int less change (i=5.70%) less Init Cap
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
(70,383
	
)
	
 
	
(76,432
	
)
	
 
	
(78,107
	
)
	
 
	
(77,306
	
)
	
 
	
(70,687
	
)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
PV After-Tax, After Cost of Capital
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
508,135
	
 
	
 
	
248,062
	
 
	
 
	
67,255
	
 
	
 
	
(58,377
	
)
	
 
	
(227,285
	
)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

 

C-20

Millimanpri-ex107_317.htm

Exhibit 10.7

 

 

EXECUTION VERSION

AMENDED AND RESTATED

80% COINSURANCE TRUST AGREEMENT

Dated as of March 31, 2016

among

Pecan Re Inc.

as Grantor,

PRIMERICA LIFE INSURANCE COMPANY

as Beneficiary

and

the bank of new york mellon

as Trustee

 

 

 

TABLE OF CONTENTS

 

	
PARTIES/RECITALS
	
 
	
PAGE

	
 
	
 
	
 
	
 
	
 

	
1.
	
 
	
Deposit of Assets to the Trust Accounts
	
 
	
1

	
 
	
 
	
 
	
 
	
 

	
2.
	
 
	
Withdrawal of Assets from the Trust Accounts.
	
 
	
1

	
 
	
 
	
 
	
 
	
 

	
3.
	
 
	
Redemption, Investment and Substitution of Assets.
	
 
	
3

	
 
	
 
	
 
	
 
	
 

	
4.
	
 
	
Income
	
 
	
4

	
 
	
 
	
 
	
 
	
 

	
5.
	
 
	
Right to Vote Assets
	
 
	
4

	
 
	
 
	
 
	
 
	
 

	
6.
	
 
	
Tax Treatment of Trusts
	
 
	
4

	
 
	
 
	
 
	
 
	
 

	
7.
	
 
	
Additional Rights and Duties of the Trustee.
	
 
	
5

	
 
	
 
	
 
	
 
	
 

	
8.
	
 
	
The Trustee's Compensation, Expenses, etc.
	
 
	
6

	
 
	
 
	
 
	
 
	
 

	
9.
	
 
	
Resignation or Removal of the Trustee.
	
 
	
7

	
 
	
 
	
 
	
 
	
 

	
10.
	
 
	
Termination of the Trust Accounts.
	
 
	
7

	
 
	
 
	
 
	
 
	
 

	
11.
	
 
	
Representations and Warranties
	
 
	
8

	
 
	
 
	
 
	
 
	
 

	
12.
	
 
	
Definitions.
	
 
	
9

	
 
	
 
	
 
	
 
	
 

	
13.
	
 
	
Governing Law.
	
 
	
10

	
 
	
 
	
 
	
 
	
 

	
14.
	
 
	
Successors and Assigns.
	
 
	
10

	
 
	
 
	
 
	
 
	
 

	
15.
	
 
	
Severability.
	
 
	
11

	
 
	
 
	
 
	
 
	
 

	
16.
	
 
	
Entire Agreement.
	
 
	
11

	
 
	
 
	
 
	
 
	
 

	
17.
	
 
	
Amendments.
	
 
	
11

	
 
	
 
	
 
	
 
	
 

	
18.
	
 
	
Notices.
	
 
	
11

	
 
	
 
	
 
	
 
	
 

	
19.
	
 
	
Third-party Beneficiaries
	
 
	
12

	
 
	
 
	
 
	
 
	
 

	
20.
	
 
	
Headings
	
 
	
12

	
 
	
 
	
 
	
 
	
 

	
21.
	
 
	
Counterparts
	
 
	
12

	
 
	
 
	
 
	
 
	
 

	
22.
	
 
	
Non-Petition
	
 
	
12

	
 
	
 
	
 
	
 
	
 

	
SCHEDULE A  INVESTMENT GUIDELINES
	
 
	
14

	
 
	
 
	
 

	
EXHIBIT A  FORM OF BENEFICIARY WITHDRAWAL NOTICE
	
 
	
46

	
 
	
 
	
 

	
EXHIBIT B  FORM OF GRANTOR WITHDRAWAL NOTICE
	
 
	
47

	
 
	
 
	
 

	
EXHIBIT C  FORM OF SUBSTITUTION NOTICE
	
 
	
48

 

 

 

i

 

AMENDED AND RESTATED 80% COINSURANCE TRUST AGREEMENT

This AMENDED AND RESTATED 80% COINSURANCE TRUST AGREEMENT (together with any and all exhibits, this “Agreement”) dated March 31, 2016, is made by and among Pecan Re Inc., a special purpose financial insurance company organized under Section 6048f of Title 8 of the Vermont Statutes Annotated (the “Grantor”), Primerica Life Insurance Company, a Massachusetts-domiciled stock life insurance company (the “Beneficiary”), and The Bank of New York Mellon, a banking corporation organized under the laws of the State of New York, as trustee (in such capacity, the “Trustee”) (the Grantor, the Beneficiary and the Trustee are hereinafter each sometimes referred to individually as a “Party” and collectively as the “Parties”), and hereby amends and restates in its entirety that certain 80% Coinsurance Trust Agreement, dated as of March 29, 2010, by and among the Parties.

The Parties hereto agree as follows:

	
1.
	
Deposit of Assets to the Trust Accounts.

	
 
	
(a)
	
An account has been established in the name of “Prime-Funded Reserves Trust Account” with the Trustee (such account, the “Prime-Funded Reserves Trust Account”) and the Trustee shall administer the Prime-Funded Reserves Trust Account in its name as Trustee for the sole use and benefit of the Beneficiary.  

	
 
	
(b)
	
An account has been established in the name of “Pecan-Funded Reserves Trust Account” with the Trustee (such account, the “Pecan-Funded Reserves Trust Account”, and together with the Prime-Funded Reserves Trust Account, the “Trust Accounts”) and the Trustee shall administer the Pecan-Funded Reserves Trust Account in its name as Trustee for the sole use and benefit of the Beneficiary. 

	
 
	
(c)
	
The Grantor has caused to be transferred and shall transfer (or cause to be transferred) to the Trustee, for deposit to the Trust Accounts, such assets as it may from time to time desire (all such assets actually received in the Trust Accounts are herein referred to individually as an “Asset” and collectively as the “Assets”).  The Assets shall consist only of Eligible Securities (as hereinafter defined).  

	
 
	
(d)
	
The Grantor hereby represents and warrants that title to any Assets transferred (or caused to be transferred) by the Grantor to the Trustee for deposit to the Trust Accounts will be recorded in the name of the Trustee, and any such Assets will be in such form that the Beneficiary whenever necessary may, and the Trustee upon direction by the Beneficiary will, negotiate any such Assets without consent or signature from the Grantor or any person in accordance with the terms of this Agreement.  Any out-of-pocket costs of transfer of title between the Grantor and the Trustee shall be borne by the Grantor.

	
2.
	
Withdrawal of Assets from the Trust Accounts.

	
 
	
(a)
	
Without notice to or the consent of the Grantor, the Beneficiary shall have the right, at any time and from time to time, to withdraw from the Trust Accounts, upon providing a Beneficiary Withdrawal Notice, such Assets as are specified in such Beneficiary Withdrawal Notice.  The Beneficiary need present no statement or document in addition to a Beneficiary Withdrawal Notice in order to withdraw any Assets.  The Beneficiary Withdrawal Notice shall be substantially in the form attached as Exhibit A.

	
 
	
(b)
	
The Beneficiary (or any successor by operation of law of the Beneficiary, including, but not limited to, any liquidator, rehabilitator, receiver or conservator of the Beneficiary) agrees solely with the Grantor that it may only withdraw Assets for one or more of the following purposes, without diminution because of insolvency on the part of the Beneficiary or the Grantor:

	
 
	
(i)
	
to pay, or reimburse the Beneficiary for payment of, the Reinsurer's Quota Share of premiums to be returned, but not yet recovered from the Grantor, to Policyholders because of cancellations of Reinsured Policies;

	
 
	
(ii)
	
to pay, or reimburse the Beneficiary for payment of, the Grantor's Quota Share of Covered Liabilities payable pursuant to the provisions of the Reinsured Policies, but not yet recovered from the Grantor;

1

	
 
	
(iii)
	
to pay to the Beneficiary any Commutation Payment due the Beneficiary but not yet paid by the Grantor;

	
 
	
(iv)
	
in the event that the Beneficiary has received notification from the Grantor or Trustee of termination of the Trust Accounts and where the Reinsurer's Quota Share of obligations under this Agreement remain unliquidated and undischarged ten (10) days prior to the scheduled termination date, the Beneficiary may withdraw all the assets in the Trust Accounts and deposit such amounts, in the name of the Beneficiary, in any United States bank or trust account, apart from its general assets, in trust for such uses and purposes specified in (i) and (ii) above as may remain executory after such withdrawal and for any period after such termination date; or

	
 
	
(v)
	
to pay to the Grantor or its designated payee amounts held in the Trust Accounts in excess of the amount necessary to secure the credit or reduction from liability for reinsurance taken by the  Beneficiary.

Any assets deposited into an account of the Beneficiary pursuant to clause (iv) of this Section 2(b) or withdrawn by the Beneficiary pursuant to clause (v) of this Section 2(b) and any interest or other earnings thereon shall be held by the Beneficiary in trust and separate and apart from any assets of the Beneficiary, for the sole purpose of funding the payments and reimbursements described in clauses (i) through (v), inclusive, of this Section 2(b).  The Trustee shall have no obligation to confirm the Beneficiary's compliance with this Section 2(b).

	
 
	
(c)
	
The Beneficiary agrees solely with the Grantor that it shall use reasonable best efforts to make withdrawals from the Pecan-Funded Reserves Trust Account for so long as there are Assets in the Pecan-Funded Reserves Trust Account and to make withdrawals from the Prime-Funded Reserves Trust Account only and to the extent Assets in the Pecan-Funded Reserves Trust Account are inadequate to cover the amount sought to be withdrawn by the Beneficiary.  The Trustee shall have no obligation to confirm the Beneficiary's compliance with this Section 2(c).  

	
 
	
(d)
	
Upon receipt of a Beneficiary Withdrawal Notice, the Trustee shall immediately take any and all steps necessary to transfer absolutely and unequivocably all right, title and interest in the Assets in the Trust Account specified in such Beneficiary Withdrawal Notice, and shall deliver physical custody of such Assets to or for the account of the Beneficiary as specified in such Beneficiary Withdrawal Notice.

	
 
	
(e)
	
With the prior written permission of the Beneficiary, the Grantor may withdraw from the Pecan-Funded Reserves Trust Account, upon providing a Grantor Withdrawal Notice, such Assets as are specified in such Grantor Withdrawal Notice.  Such withdrawals shall be delivered to the Grantor or such designee of the Grantor as is specified in any such Grantor Withdrawal Notice; provided, that, upon the Grantor's request, such designee may be the effective designee with respect to all future Grantor Withdrawal Notices, unless the Grantor notifies the Trustee of a change in its designee.  The form of the Grantor Withdrawal Notice shall be substantially in the form attached as Exhibit B.

	
 
	
(f)
	
With the prior written permission of the Beneficiary, the Grantor may withdraw from the Prime-Funded Reserves Trust Account, upon providing a Grantor Withdrawal Notice, such Assets as are specified in such Grantor Withdrawal Notice.  Such withdrawals shall be delivered to the Grantor or such designee of the Grantor as is specified in any such Grantor Withdrawal Notice; provided, that, upon the Grantor's request, such designee may be the effective designee with respect to all future Grantor Withdrawal Notices, unless the Grantor notifies the Trustee of a change in its designee.  The form of the Grantor Withdrawal Notice shall be substantially in the form attached as Exhibit B.

	
 
	
(g)
	
Upon receipt of a fully executed Grantor Withdrawal Notice, the Trustee shall immediately take any and all steps necessary to transfer all right, title and interest in the Assets specified in such Grantor Withdrawal Notice, and shall deliver such Assets to or for the account of the Grantor or its designee, as applicable, as specified in such Grantor Withdrawal Notice.

2

	
 
	
(h)
	
The Beneficiary agrees that the Grantor may transfer Assets between the Pecan-Funded Reserves Trust Account and the Prime-Funded Reserves Trust Account without the prior consent of the Beneficiary; provided, that, for the avoidance of doubt, this Section 2(h) does not provide the Grantor with any right to make any withdrawal from a Trust Account that is not immediately transferred to another Trust Account.

	
 
	
(i)
	
Except as provided in Section 2 and Section 3 of this Agreement, in the absence of a Substitution Notice, Beneficiary Withdrawal Notice or Grantor Withdrawal Notice, the Trustee shall allow no substitution or withdrawal of any Asset from the Trust Accounts by the Grantor.

	
3.
	
Redemption, Investment and Substitution of Assets.

	
 
	
(a)
	
The Trustee shall surrender for payment all maturing Assets and all Assets called for redemption and deposit the principal amount of the proceeds of any such payment to the Trust Accounts.

	
 
	
(b)
	
Grantor and Beneficiary agree that Conning Asset Management Company (“Conning”) or any replacement manager designated from time to time by the Grantor will be the investment manager for all Assets which may be held in the Prime-Funded Reserves Trust Account.  Grantor and Beneficiary agree that Conning or any replacement manager designated from time to time by the Grantor will be the investment manager (the investment manager of the Assets in each of the Pecan-Funded Reserves Trust Account and the Prime-Funded Reserves Trust Account, each an “Investment Manager”) for all Assets which may be held in the Pecan-Funded Reserves Trust Account.  Each Investment Manager shall be the agent of, and is acting on behalf of, the Grantor.  The Grantor shall be solely responsible for all fees charged by and all other obligations to the Investment Managers in connection with the Trust Accounts.  

	
 
	
(c)
	
From time to time, upon the written order and direction of the applicable Investment Manager of the Prime-Funded Reserves Trust Account or Pecan-Funded Reserves Trust Account, the Trustee shall invest Assets as specified by such Investment Manager, who shall limit all investments to the categories of securities set forth in the definition of “Eligible Securities” in Section 12 of this Agreement.  Any instruction or order concerning the investment of securities shall be referred to herein as an “Investment Order.”  The Trustee shall execute Investment Orders and settle securities transactions by itself or by means of an agent or broker.  The Trustee shall not be responsible for any act or omission, or for the solvency, of any such agent or broker.

	
 
	
(d)
	
Each Investment Manager is hereby authorized to issue Investment Orders and direct the Trustee to invest the Assets in the Prime-Funded Reserves Trust Account or Pecan-Funded Reserves Trust Account, as applicable, without obtaining the consent of the Beneficiary prior to each investment; provided, however, all such investments are limited to Eligible Securities.

	
 
	
(e)
	
From time to time, subject to the other provisions of this Agreement including the requirement that title to Assets shall be recorded in the name of the Trustee, the Trustee is authorized to accept substitutions from the Grantor or the applicable Investment Manager of any Eligible Securities in the Trust Accounts for other Eligible Securities pursuant to a written notice (which shall also certify that such substitutions are Eligible Securities) (the “Substitution Notice”); provided that either the Grantor or the applicable Investment Manager certifies to the Trustee that the aggregate Pecan-Funded Reserves Fair Value or Prime-Funded Reserves Fair Value, as applicable, of the Assets to be deposited or credited to the Trust Accounts pursuant to such substitution or exchange is at least equal to the aggregate Pecan-Funded Reserves Fair Value or Prime-Funded Reserves Fair Value, as applicable, of the Assets being removed from the Trust Accounts.

	
 
	
(f)
	
The Grantor hereby covenants that all investments and substitutions of securities requested by it or by the Investment Managers in accordance with this Section 3 shall be in compliance with the relevant provisions set forth in the definition of “Eligible Securities” in Section 12 of this Agreement.  

	
 
	
(g)
	
When the Trustee is directed to deliver Assets against payment, delivery will be made in accordance with generally accepted market practice.

3

	
 
	
(h)
	
Any loss incurred from any investment pursuant to the terms of this Section 3 shall be borne exclusively by the Trust Accounts.

	
 
	
(i)
	
For purposes of determining the fair market value of any Assets in the (i) Pecan-Funded Reserves Trust Account pursuant to this Agreement, the parties hereby agree (without any liability being incurred on the part of the Trustee for any incorrect fair valuation of Assets, howsoever caused) to use prices (on a bid basis, where applicable) based on prices published by a nationally recognized pricing service reasonably selected by the Grantor for Assets for which such prices are available and for Assets for which such prices are not available, the value assigned using methodologies consistent with those which the Grantor uses for determining the fair market value of assets held in the Grantor's general account (other than the Assets) in the ordinary course of business (the “Pecan-Funded Reserves Fair Value”) and (ii) Prime-Funded Reserves Trust Account pursuant to this Agreement, the parties hereby agree (without any liability being incurred on the part of the Trustee for any incorrect fair valuation of Assets, howsoever caused) to use prices (on a bid basis, where applicable) published by a nationally recognized pricing service reasonably selected by the Grantor for Assets for which such prices are available and for Assets for which such prices are not available, to obtain at the expense of the Grantor and pursuant to its written recommendation, a major independent securities valuation firm to appraise the value of such Assets (the “Prime-Funded Reserves Fair Value”).  If the Beneficiary shall dispute the Fair Value of any Asset, and the parties are unable to resolve such dispute within fourteen (14) days, the value of such Asset shall be determined by an independent appraisal firm which is mutually acceptable to the Grantor and the Beneficiary, and the parties shall be bound by such valuation.  The Trustee shall not be a party to any dispute between the Grantor and the Beneficiary relating to the valuation of Assets.

4.Income.  To the extent that the Trustee shall collect and receive payments of interest and dividends in respect of Assets in the Trust Accounts (hereinafter referred to as “Income”) from the Trust Accounts, it shall pay over the amount of such Income upon the prior written direction of the Grantor and may deposit such Income in a separate account or accounts established in the name of the Grantor or in the name of any designee or designees designated in writing by the Grantor; provided, however, that the Trustee shall have no duties or obligations as Trustee with respect to the payment of Income by the issuer of the Assets or the deposit of such Income as provided herein.  Any Income automatically posted and credited on the payment date to the Income Account which is not subsequently received by the Trustee shall be reimbursed by the Grantor to the Trustee and the Trustee may debit the Income Account for this purpose.  Income shall be paid to the Grantor or any such designee in accordance with written instructions provided from time to time by the Grantor to the Trustee.

5.Right to Vote Assets.  The Trustee shall forward all annual and interim stockholder reports and all proxies and proxy materials relating to the Assets in the Trust Accounts to the Grantor.  Subject to other provisions of this Agreement and the requirement that title to Assets be recorded in the name of the Trustee, the Grantor shall have the full and unqualified right to vote any Assets in the Trust Accounts.  Whenever there are voluntary rights that may be exercised or alternate courses of action that may be taken by reason of the Grantor's ownership of Eligible Securities, the Grantor shall be responsible for making any decisions relating thereto and for directing the Trustee to act.  The Trustee shall notify the Grantor of rights or discretionary actions with respect to Eligible Securities as promptly as practicable under the circumstances, provided that the Trustee has actually received notice of such right or discretionary corporate action from the relevant depository, etc.  Absent actual receipt of such applicable third-party notice, the Trustee shall have no liability for failing to so notify the Grantor of any rights or discretionary corporate actions with respect to Eligible Securities.  Absent the Trustee's timely receipt of instructions from the Grantor, the Trustee shall not be liable for failure to take any action relating to or to exercise any rights conferred by such Eligible Securities.

6.Tax Treatment of Trusts.  The parties agree to treat the Pecan-Funded Reserves Trust Account and the Prime-Funded Reserves Trust Account as mere security devices and not as separate entities for U.S. federal income tax purposes.    

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7.
	
Additional Rights and Duties of the Trustee.

	
 
	
(a)
	
The Trustee shall notify the Grantor, any designee of the Grantor under Section 2(f) (at such address as may be provided by such designee to the Trustee in writing from time to time) and the Beneficiary in writing within five (5) business days following each deposit to, withdrawal from or transfer between the Trust Accounts; provided, however, the Trustee shall notify the Grantor and the Beneficiary in writing within three (3) business days following (i) each withdrawal from the Trust Account that totals an amount equal to or in excess of $20,000,000 or (ii) any number of withdrawals that results in an amount equal to or in excess of $20,000,000 if such withdrawals occur within a two day period of each other.  The Trustee will be deemed to have delivered such notice of deposit, withdrawal and receipt of Grantor Withdrawal Notice or Beneficiary Withdrawal Notice, as applicable, if each such notice is available on one or more of the Trustee's systems for the delivery of electronic media to which system(s) Grantor and Beneficiary have access.

	
 
	
(b)
	
The Trustee shall not accept any Assets (other than cash) for deposit into the Trust Accounts unless the Trustee determines that it is or will be the registered owner of and holder of legal title to the Assets or that such Assets are in such form that the Trustee may, if applicable to such asset class, negotiate any such Assets, without consent or signature from the Grantor or any other person or entity.  Any Assets received by the Trustee which, if applicable to such asset class, are not in such proper negotiable form or for which title has not been transferred to the Trustee shall not be accepted by the Trustee and shall be returned to the Grantor as unacceptable.

	
 
	
(c)
	
The Trustee shall have no responsibility whatsoever to determine that any Assets (other than cash) in the Trust Accounts are or continue to be Eligible Securities.

	
 
	
(d)
	
All Assets shall be held in a safe place by the Trustee at the Trustee's office in the United States, except that the Trustee may deposit any Assets in the Trust Accounts in a book entry account maintained at the Federal Reserve Bank of New York or in depositories such as the Depository Trust Company and the Participants Trust Company.  Assets may be held in the name of a nominee maintained by the Trustee or by any such depository.

	
 
	
(e)
	
The Trustee shall accept and open all mail directed to the Grantor or the Beneficiary in care of the Trustee and shall forward such mail to the party to whom it is directed.

	
 
	
(f)
	
The Trustee shall furnish to the Grantor and the Beneficiary a statement of all Assets in the Trust Accounts at the inception of the Trust Accounts and at the end of each calendar month.

	
 
	
(g)
	
Upon the request of the Grantor or the Beneficiary, the Trustee shall promptly permit the Grantor or the Beneficiary, their respective agents, employees or independent auditors to examine, audit, excerpt, transcribe and copy, during the Trustee's normal business hours, any books, documents, papers and records relating to the Trust Accounts or the Assets.

	
 
	
(h)
	
Unless otherwise provided in this Agreement, the Trustee is authorized to follow and rely upon all instructions given by officers and by attorneys in fact acting under written authority furnished to the Trustee by the Grantor or the Beneficiary, including, without limitation, instructions given by letter, facsimile transmission, telegram, teletype, cablegram or electronic media, if the Trustee believes such instructions to be genuine and to have been signed, sent or presented by the proper Party or Parties.  The Trustee shall not incur any liability to anyone resulting from actions taken by the Trustee in reliance in good faith on such instructions.  The Trustee shall not incur any liability in executing instructions (i) from any attorney in fact or Investment Manager prior to receipt by it of notice of the revocation of the written authority of the attorney in fact or Investment Manager, or (ii) from any officer of the Grantor or the Beneficiary.

	
 
	
(i)
	
The duties and obligations of the Trustee shall only be such as are specifically set forth in this Agreement, as it may from time to time be amended, and no implied duties or obligations shall be read into this Agreement against the Trustee.  The Trustee shall not be liable except for its own negligence, willful misconduct or lack of good faith, and in no event shall the Trustee be liable for special, punitive, or consequential losses or damages arising in connection with this Agreement.

5

	
 
	
(j)
	
No provision of this Agreement shall require the Trustee to take any action which, in the Trustee's reasonable judgment, would result in any violation of this Agreement or any provision of law.  If any third party asserts a lien against any of the Assets, the Trustee shall, upon becoming aware of such assertion, promptly notify both the Grantor and the Beneficiary of such claim.

	
 
	
(k)
	
The Trustee shall not be responsible for the existence, genuineness or value of any of the Assets or for the validity, perfection, priority or enforceability of the liens in any of the Assets, whether impaired by operation of law or by reason of any action or omission to act on its part hereunder, except to the extent such action or omission constitutes negligence, bad faith or willful misconduct on the part of the Trustee, for the validity of title to the Assets, for insuring the Assets or for the payment of taxes, charges, assessments or liens upon the Assets.

	
 
	
(l)
	
The Trustee shall not incur any liability for not performing any act or fulfilling any duty, obligation or responsibility hereunder by reason of any occurrence beyond the control of Trustee such as to any act or provision of any present or future law or regulation or governmental authority, terrorism, any act of God or war, or the unavailability of the Federal Reserve Bank wire or telex.

	
 
	
(m)
	
The Trustee is not required to make advances of cash, securities or any other property on behalf of the Trust Accounts, or permit overdrafts in the Trust Accounts in connection with the acquisition or disposition of Assets in the Trust Accounts.  

	
 
	
(n)
	
At any time in connection with the performance of its services under this Agreement, the Trustee may consult with counsel selected by it who may be counsel for Grantor, Grantor's designee under Section 2(f) or Beneficiary.  The opinion of said counsel will be full and complete authority and protection for the Trustee with respect to any action taken, suffered or omitted by it in good faith and in accordance with the opinion of said counsel other than with respect to the withdrawal of Assets by Beneficiary.

	
8.
	
The Trustee's Compensation, Expenses, etc.

	
 
	
(a)
	
The Grantor shall pay the Trustee, as compensation for its services under this Agreement, a fee which shall be mutually agreed upon in writing by the Trustee and Grantor, which shall be updated no more frequently than annually.  The Grantor shall pay or reimburse the Trustee for all of the Trustee's appropriate expenses and disbursements in connection with its duties under this Agreement (including any reasonable attorney's fees and expenses), except any such expense or disbursement as may arise from the Trustee's negligence, willful misconduct, or lack of good faith.  The Trustee shall notify the Grantor of all expenses and disbursements on a quarterly basis (“Trustee Invoice”).  The Trustee Invoice shall state the nature and amount of such expenses and disbursements and such other information as the Grantor may reasonably request to make such payment to the Trustee.  The Grantor shall pay such expenses and disbursements within a reasonable period of time after its receipt and review of such Trustee Invoice, unless the Trustee and Grantor agree otherwise in writing.

	
 
	
(b)
	
The Trustee may not invade the Trust Account Assets for the purpose of paying compensation to or reimbursing expenses of the Trustee, but the Trustee shall be entitled to deduct its compensation and expenses, which have been billed to the Grantor but have not been paid by the Grantor to the Trustee in accordance with Section 8(a) hereof, from payments of Income in respect of the Assets held in the Trust Accounts and deposited into the Income Account as provided in Section 4 of this Agreement.  The Grantor hereby grants the Trustee a lien, right of set off and security interest in such funds and in such Income Account for the payment of any claim for compensation, reimbursement or indemnity hereunder, which has been billed but has not been paid to the Trustee within a reasonable period of time.  The Grantor and the Beneficiary, jointly and severally, hereby indemnify the Trustee for, and hold it harmless against, any loss, liability, costs or expenses (including attorney's fees and expenses) incurred or made without negligence, willful misconduct or lack of good faith on the part of the Trustee, arising out of or in connection with the performance of its obligations in accordance with the provisions of this Agreement, including any loss, liability, costs or expenses arising out of or in connection with the status of the Trustee and its nominee as the holder of record of the Assets.  The Grantor hereby acknowledges that the foregoing indemnities shall survive the resignation or discharge of the Trustee or the termination of this Agreement. 

6

	
 
	
(c)
	
Except as specifically provided for in paragraph (b) above, no Assets shall be withdrawn from the Trust Accounts or used in any manner for paying compensation to, or reimbursement or indemnification of, the Trustee.

	
9.
	
Resignation or Removal of the Trustee.

	
 
	
(a)
	
The Trustee may resign at any time by giving not less than 90 days written notice thereof to the Beneficiary and to the Grantor.  The Trustee may be removed by the Grantor's delivery of not less than 90 days written notice of removal to the Trustee and the Beneficiary.  Such resignation or removal shall become effective on the acceptance of appointment by a successor Trustee and the transfer to such successor Trustee of all Assets in the Trust Accounts in accordance with paragraph (b) of this Section 9.

	
 
	
(b)
	
Upon receipt by the proper Parties of the Trustee's notice of resignation or the Grantor's notice of removal, the Grantor, with the prior written consent of the Beneficiary, which consent shall not be unreasonably withheld, shall appoint a successor Trustee.  Any successor Trustee shall be a bank that is a member of the Federal Reserve System or chartered in the Commonwealth of Massachusetts.  Upon the acceptance of the appointment as Trustee hereunder by a successor Trustee and the transfer to such successor Trustee of all Assets in the Trust Accounts, the resignation or removal of the Trustee shall become effective.  Thereupon, such successor Trustee shall succeed to and become vested with all the rights, powers, privileges and duties of the resigning or removed Trustee, and the resigning or removed Trustee shall be discharged from any future duties and obligations under this Agreement, but the resigning or removed Trustee shall continue to be entitled to the benefits of the indemnities provided herein for the Trustee as well as responsible for its obligations, acts and omissions taken while acting as Trustee.

	
10.
	
Termination of the Trust Accounts.

	
 
	
(a)
	
The Trust Accounts and this Agreement, except for the indemnities provided herein, may be terminated only after (i) the Grantor, with the prior written consent of the Beneficiary, which consent shall not be unreasonably withheld, has given the Trustee written notice of its intention to terminate the Trust Accounts (the “Notice of Intention”), and (ii) the Trustee has given the Grantor and the Beneficiary the written notice specified in paragraph (b) of this Section 10.  The Notice of Intention shall specify the date on which the notifying Party intends the Trust Accounts to terminate (the “Proposed Date”).

	
 
	
(b)
	
Within three (3) days following receipt by the Trustee of the Notice of Intention, the Trustee shall give written notification (the “Termination Notice”) to the Beneficiary and the Grantor of the date (the “Termination Date”) on which the Trust Accounts shall terminate.  The Termination Date shall be (i) the Proposed Date if the Proposed Date is at least 30 days but no more than 45 days subsequent to the date the Termination Notice is given; (ii) 30 days subsequent to the date the Termination Notice is given, if the Proposed Date is fewer than 30 days subsequent to the date the Termination Notice is given; or (iii) 45 days subsequent to the date the Termination Notice is given, if the Proposed Date is more than 45 days subsequent to the date the Termination Notice is given.

	
 
	
(c)
	
On the Termination Date, upon receipt of written approval of the Beneficiary, the Trustee shall transfer to the Grantor or any person designated in writing by the Grantor any Assets remaining in the Pecan-Funded Reserves Trust Account, at which time all liability of the Trustee with respect to such Assets shall cease.

	
 
	
(d)
	
On the Termination Date, upon receipt of written approval of the Beneficiary, the Trustee shall transfer to the Grantor or any person designated in writing by the Grantor any Assets remaining in the Prime-Funded Reserves Trust Account, at which time all liability of the Trustee with respect to such Assets shall cease.

7

	
11.
	
Representations and Warranties.

	
 
	
(a)
	
The Trustee represents and warrants that the Trustee is a banking corporation, duly organized and validly existing and in good standing under the laws of the State of New York and has the requisite power and authority to carry on its respective business as now being conducted.  The Trustee is duly qualified and authorized to do business and is in good standing in each jurisdiction where the Assets are maintained.  

	
 
	
(b)
	
The Trustee represents and warrants that the Trustee has all requisite corporate power and authority to execute and deliver this Agreement and to perform its respective obligations under this Agreement.  The execution, delivery and performance of this Agreement by the Trustee and the consummation of the transactions contemplated by this Agreement by the Trustee have been duly and validly authorized by all necessary corporate action on the part of the Trustee.  This Agreement constitutes the legal, valid and binding obligation of the Trustee, enforceable against the Trustee in accordance with its terms, except as such enforceability may be limited by applicable laws relating to bankruptcy, insolvency, reorganization, or affecting creditors' rights generally and except to the extent that injunctive or other equitable relief is within the discretion of a court.

	
 
	
(c)
	
The Trustee represents and warrants that the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated by this Agreement do not and will not (i) violate or conflict with the Trustee's corporate charter or by-laws; or (ii) violate or conflict with any law or governmental regulation, or any judicial, administrative or arbitration order, award, judgment, writ, injunction or decree applicable to the Trustee.

	
 
	
(d)
	
The Grantor represents and warrants that the Grantor is a special purpose financial insurance company duly organized, validly existing and in good standing under the laws of the State of Vermont and has all requisite corporate power and authority to own, lease and operate its properties and assets and to carry on the operations of its business as they are proposed to be conducted.

	
 
	
(e)
	
The Grantor represents and warrants that the Grantor has all requisite corporate power and authority to enter into this Agreement and to perform its obligations hereunder.  The execution and delivery by the Grantor of this Agreement, and the performance by the Grantor of its obligations under this Agreement, have been duly authorized by all necessary corporate action and do not require any further authorization, action or consent of the Grantor or its stockholder.  This Agreement, when duly executed and delivered by the Grantor, subject to the due execution and delivery by the Parties hereto, will be a valid and binding obligation of the Grantor, enforceable against the Grantor in accordance with its terms, in each case subject to bankruptcy, insolvency, reorganization, moratorium and similar laws of general application relating to or affecting enforcement of creditors' rights and to general equity principles.

	
 
	
(f)
	
The Grantor represents and warrants that the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby will not (i) violate any provision of the Articles of Incorporation, Bylaws or other charter or organizational document of the Grantor, or (ii) violate any order, judgment, injunction, award or decree of any court, arbitrator or Governmental Authority against, or binding upon, or any agreement with, or condition imposed by, any Governmental Authority, foreign or domestic, binding upon the Grantor, except when any such violation would not have a material adverse effect on this Agreement or the consummation of the transactions contemplated hereby.

	
 
	
(g)
	
The Beneficiary represents and warrants that the Beneficiary is a life insurance company duly organized, validly existing and in good standing under the laws of the Commonwealth of Massachusetts, and has all requisite corporate power and authority to carry on the operations of its business as they are now being conducted.  

8

	
 
	
(h)
	
The Beneficiary represents and warrants that the Beneficiary has all requisite corporate power and authority to enter into this Agreement and to perform its obligations hereunder.  The execution and delivery by the Beneficiary of this Agreement, and the performance by the Beneficiary of its obligations under this Agreement, have been duly authorized by all necessary corporate action and do not require any further authorization, action or consent of the Beneficiary.  This Agreement, when duly executed and delivered by the Beneficiary, subject to the due execution and delivery by the Parties hereto, will be a valid and binding obligation of the Beneficiary, enforceable against the Beneficiary in accordance with its terms, in each case subject to bankruptcy, insolvency, reorganization, moratorium and similar laws of general application relating to or affecting enforcement of creditors' rights and to general equity principles.

	
 
	
(i)
	
The Beneficiary represents and warrants that the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby in accordance with the respective terms and conditions hereof will not (i) violate any provision of the Articles of Incorporation or Bylaws of the Beneficiary, (ii) violate, conflict with or result in the breach of any of the terms of, result in any modification of, give any counterparty the right to terminate, or constitute a default under, any contract or other agreement to which the Beneficiary is a party, or (iii) violate any order, judgment, injunction, award or decree of any court, arbitrator or Governmental Authority against, or binding upon, or any agreement with, or condition imposed by, any Governmental Authority, foreign or domestic, binding upon the Beneficiary.

	
12.
	
Definitions.

Except as the context shall otherwise require, the following terms shall have the following meanings for all purposes of this Agreement (the definitions to be applicable to both the singular and the plural forms of each term defined if both forms of such term are used in this Agreement):

The term “80% Coinsurance Agreement” means the Amended and Restated 80% Coinsurance Agreement, dated as of March 31, 2016, by and between the Beneficiary and the Grantor, as amended, supplemented, novated or otherwise modified from time to time.

The term “Affiliate” with respect to any corporation shall mean a corporation which directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, such corporation.

The term “Beneficiary” shall include any successor of the Beneficiary by operation of law including, without limitation, any liquidator, rehabilitator, receiver or conservator.

The term “Beneficiary Withdrawal Notice” means a notice substantially in the form of the specimen notice attached to this Agreement as Exhibit A.

The term “Commutation Payment” shall have the meaning specified in the 80% Coinsurance Agreement.

The term “control” (including the related terms “controlled by” and “under common control with”) shall mean the ownership, directly or indirectly, of more than 10% of the voting stock of a corporation.

The term “Covered Liabilities” shall have the meaning specified in the 80% Coinsurance Agreement.

The term “Eligible Securities” means cash in United States dollars, certificates of deposit issued by a United States bank and payable in United States dollars, and investments permitted by M.G.L. c. 175 or any combination of the above, provided investments in or issued by an entity controlling, controlled by or under common control with the Grantor or the Beneficiary shall not exceed 5% of total investments.  Commercial paper and other obligations of institutions must be issued by a corporation (other than the Grantor or the Beneficiary, or any of their respective Affiliates) which is organized and existing under the laws of the United States of America, unless otherwise allowed by M.G.L. c. 175.  The Eligible Securities are further subject to and limited by, the investment guidelines set forth in the attached Schedule A to this Agreement.

9

The term “Governmental Authority” means any federal, state, county, local, foreign or other governmental or public agency, instrumentality, commission, authority or self-regulatory organization, board or body.

The term “Grantor Withdrawal Notice” means a notice substantially in the form of the specimen notice attached to this Agreement as Exhibit B.

The term “Insolvency Proceeding” means any insolvency proceeding under Chapter 145 of Title 8 of the Vermont Statutes Annotated or any proceeding or petition seeking liquidation, reorganization, rehabilitation, dissolution, sequestration, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, insolvency, winding-up, receivership, conservatorship, debtor relief or any proceeding or relief for the appointment of any liquidator, rehabilitator, trustee, receiver, conservator, custodian, sequestrator, or similar official, marshalling of assets or any similar proceeding, in each case whether under the Bankruptcy Code, any state insurance insolvency statute or code similar to any of the foregoing, or any other federal, state or foreign law.

The term “Parent” shall mean an institution that, directly or indirectly, controls another institution.

The term “person” shall mean and include an individual, a corporation, a partnership, an association, a trust, an unincorporated organization or a government or political subdivision thereof.

The term “Policyholders” shall have the meaning specified in the 80% Coinsurance Agreement.

The term “Reinsured Policies” shall have the meaning specified in the 80% Coinsurance Agreement.

The term “Reinsurer's Quota Share” shall have the meaning specified in the 80% Coinsurance Agreement.

The term “Subsidiary” shall mean an institution controlled, directly or indirectly, by another institution.

The term “Substitution Notice” means a notice substantially in the form of the specimen notice attached to this Agreement as Exhibit C.

The term “Trust” shall mean the trust formed hereunder.

	
13.
	
Governing Law.

This Agreement shall be subject to and construed in accordance with the laws of the Commonwealth of Massachusetts, without giving effect to the principles of conflicts of law thereof.  Each Party hereto hereby waives trial by jury in any judicial proceeding involving, directly or indirectly, any matter (whether sounding in tort, contract or otherwise) in any way arising out of or related to this agreement or the relationship established hereunder.  This provision is a material inducement for the parties to enter into this Agreement.  Each Party hereby irrevocably waives, to the fullest extent permitted by applicable law, any objection which it may now or hereafter have to the laying of venue of any such proceeding brought in such a court and any claim that such proceeding brought in such a court has been brought in an inconvenient forum.  The establishment and maintenance of the Trust Accounts, and all interests, duties and obligations with respect thereto, shall be governed by the laws of the Commonwealth of Massachusetts.

	
14.
	
Successors and Assigns.

Except as expressly permitted by Section 9 of this Agreement, no Party may assign this Agreement or any of its rights or obligations hereunder without the prior written consent of both the Grantor and the Beneficiary; provided, that the Grantor may assign (on a case-by-case or ongoing basis) its contractual rights, including any associated enforcement rights, (a) under Section 2(e) to receive Assets withdrawn from the Pecan-Funded Reserves Trust Account in accordance therewith to any designee under Section 2(e) designated in accordance herewith, (b) under Section 2(f) to receive Assets withdrawn from the Prime-Funded Reserves Trust Account in accordance therewith to any designee thereunder designated in accordance herewith, (c) under Section 2(g) to receive Assets withdrawn from the Trust Accounts in accordance therewith to any designee thereunder designated in accordance herewith, 

10

(d) under Section 4 to receive any Income payable under Section 4 to any designee under Section 4 designated in accordance herewith, (e) under Section 10(c) to receive any assets released from the Pecan-Funded Reserves Trust Account on the Termination Date with the prior written approval of the Beneficiary, to any designee under Section 10(c) designated in accordance herewith, or (f) under Section 10(d)  to receive any assets released from the Prime-Funded Reserves Trust Account on the Termination Date with the prior written approval of the Beneficiary, to any designee under Section 10(d) designated in accordance herewith, subject in each case and in all respects to the rights of the Beneficiary hereunder.  The provisions of this Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns.

	
15.
	
Severability.

In the event that any provision of this Agreement shall be declared invalid or unenforceable by any regulatory body or court having jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining portions of this Agreement.

	
16.
	
Entire Agreement.

This Agreement constitutes the entire agreement among the Parties, and there are no conditions or qualifications relative to this Agreement which are not fully expressed in this Agreement. 

	
17.
	
Amendments.

This Agreement may be modified or otherwise amended, and the observance of any term of this Agreement may be waived, if such modification, amendment or waiver is in writing and signed by the Parties.

	
18.
	
Notices.

Unless otherwise provided in this Agreement, any notice and other communication required or permitted hereunder shall be in writing and shall be (i) delivered personally, (ii) sent by electronic media (by SWIFT, emailed pdf. or other similar and reliable means), or in the event that electronic transmission is unavailable for any reason, by facsimile transmission (and immediately after transmission confirmed by telephone), or (iii) sent by certified, registered or express mail, postage prepaid; provided, however, that any Party delivering a communication by facsimile transmission shall retain the electronically generated confirmation of delivery, showing the telephone number to which the transmission was sent and the date and time of the transmission.  Any such notice shall be deemed given when so delivered personally, sent by electronic media or by facsimile transmission (and immediately after such facsimile transmission confirmed by telephone) or, if mailed, on the date shown on the receipt therefor, as follows:

if to the Grantor:

Pecan Re Inc.

c/o Marsh Management Services, Inc. 

P.O. Box 530 

100 Bank Street, Suite 610 

Burlington, Vermont 05402-0530 

Attention: Kimberly Whitcomb

with copies to (which shall not constitute notice to the Grantor for purposes of this Section 18):

Swiss Re Life & Health America Inc. 

175 King Street 

Armonk, New York 10504 

Attention: John Regan 

 

and

11

 

Swiss Re Life & Health America Inc. 

175 King Street 

Armonk, New York 10504 

Attention: Reka Koerner 

 

and

 

Debevoise & Plimpton LLP 

919 Third Avenue

New York, New York 10022

Attention: Alexander R. Cochran

if to the Beneficiary:

Primerica Life Insurance Company

1 Primerica Parkway

Duluth, GA 30099-0001

Facsimile:  (770) 564-6174

with copies to (which shall not constitute notice to the Beneficiary for purposes of this Section 18):

DLA Piper LLP (US)

1251 Avenue of the Americas, 27th Floor

New York, NY 10020

Attention:David D. Luce

If to the Trustee:

The Bank of New York Mellon

101 Barclay Street

Mailstop: 101-0850

New York, New York 10286

Attention: Insurance Trust and Escrow Group/Patricia Scrivano

Facsimile: (732) 667-9536

Each Party may from time to time designate a different address for notices, directions, requests, demands, acknowledgments and other communications by giving written notice of such change to the other Parties.  

	
19.
	
Third-party Beneficiaries. Nothing in this Agreement is intended to give any person, other than the parties to this Agreement, their successors and permitted assigns, any legal or equitable right remedy or claim under or in respect of this Agreement or any provision contained herein.

	
20.
	
Headings. The headings of the Sections and the Table of Contents have been inserted for convenience of reference only and shall not be deemed to constitute a part of this Agreement.

	
21.
	
Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall constitute an original, but such counterparts together shall constitute but one and the same Agreement. 

	
22.
	
Non-Petition.  The Trustee agrees that it shall not petition, request or take any action to commence to any Insolvency Proceeding in respect of the Grantor or a substantial part of its assets.

[Signature pages follow]

 

 

12

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered by their respective officers thereunto duly authorized as of the date first above written.

 

	
Pecan Re Inc., as Grantor
	
 

	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Brian Lo
	
 

	
 
	
 
	
Name: Brian Lo
	
 

	
 
	
 
	
Title: President
	
 

	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ John Gribbon
	
 

	
 
	
 
	
Name: John Gribbon
	
 

	
 
	
 
	
Title: Sr. Vice President & CFO
	
 

	
 
	
 
	
 
	
 

	
PRIMERICA LIFE INSURANCE COMPANY, as Beneficiary

	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Dan Settle
	
 

	
 
	
 
	
Name: Dan Settle
	
 

	
 
	
 
	
Title: Executive Vice President
	
 

	
 
	
 
	
 
	
 

	
the bank of new york mellon, as Trustee

	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Ignazio Tamburello
	
 

	
 
	
 
	
Name: Ignazio Tamburello
	
 

	
 
	
 
	
Title: Vice President
	
 

 

 

 

[Signature Page to Amended and Restated Coinsurance Trust Agreement]

 

SCHEDULE A

INVESTMENT GUIDELINES

[Attached]

14

 

Pecan Re Inc.

Operating Policy and

Investment Portfolio Guidelines

(for the Pecan-Funded Reserves Trust Account)

 

 

 

15

 

Pecan Re Inc.

Pecan Re Inc. (“Pecan Re”) under the Trust Agreement (as defined below) shall be responsible for complying with the terms of the Trust Agreement and the Operating Policy and Investment Portfolio Guidelines. One of the purposes of the Trust Agreement is to permit Primerica Life Insurance Company (“PLIC”), in accordance with the Code of Massachusetts Regulations, 211 CMR 130.10, to take statutory financial statement credit for the reinsurance under the Coinsurance Agreement (as defined below).

Pecan Re and PLIC are parties to an 80% Coinsurance Agreement, pursuant to which Pecan Re reinsures 80% of certain of PLIC’s liabilities and benefits associated with its term life insurance business in force as of December 18, 2009 (the “Coinsurance Agreement”). In connection with the Coinsurance Agreement, Pecan Re will maintain two trust accounts. In connection with the Coinsurance Agreement, statutory reserves in excess of an amount of reserves set forth on an agreed schedule set forth in the Collateralized Stop Loss Reinsurance Agreement, dated as of March 31, 2016, by and between Pecan Re and Prime Reinsurance Company, Inc. (“PRC”) will be funded by Pecan Re and maintained in a trust with Pecan Re or its designee receiving interest from the trust (the “Pecan-Funded Reserve Trust Account”) and an amount of reserves set forth on such agreed schedule will be funded by PRC and maintained in a separate trust (the “Prime-Funded Reserve Trust Account”, together with the Pecan-Funded Reserve Trust Account, the “Trust Accounts”). The Trust Accounts were established pursuant to a trust agreement among Pecan Re, PLIC and Trustee, entered into simultaneously with the Coinsurance Agreement (the “Trust Agreement”).

As of March 31, 2016

16

 

Operating Policy

The objective of this Operating Policy is to identify and document investment parameters (“Managed Portfolio Parameters”) related to the Managed Portfolio (defined as certain investment accounts owned by those legal entities listed in Exhibit III to the Appendix).

This Operating Policy must be approved by Pecan Re’s Investment Committee whose members are listed in Exhibit II to the Appendix (“Investment Committee”), the CFO of Pecan Re, the Senior Risk Manager or designee and the PLIC designee each named in Exhibit II to the Appendix (jointly, the “Approvers”), the Massachusetts Division of Insurance (the “Division”) and agreed to by any investment adviser registered under the Investment Advisers Act of 1940 that has been formally appointed by Pecan Re (“Investment Adviser”) from time to time. The Operating Policy and the Portfolio Guidelines (attached as the Appendix) may only be amended with the joint approval of the Approvers and agreed to by the Investment Adviser and certain amendments to the Managed Portfolio Parameters must be approved by the Division; provided that Exhibit II and Exhibit IV may be amended by the Approvers without the approval of the Division or the consent of the Investment Adviser and the constituency of the Investment Committee may be changed from time to time solely by the Board of Directors of Pecan Re. Exhibit IV may be updated at the request of the Senior Risk Manager’s approver (Exhibit II) and communicated to the Investment Advisor.

The Managed Portfolio will be managed in compliance with all relevant laws and regulations including (i) limitations and regulations applied on a legal entity basis under the investment laws of each relevant state, (ii) requirements that transactions between affiliates be on terms that are fair and reasonable under the holding company acts, including Sections 23A and 23B of the Bank Holding Company Act and (iii) the requirements of M.G.L. c. 175, §20A and 211 CMR 130.07.

In addition, the Managed Portfolio will be managed by the Investment Adviser according to and in compliance with this Operating Policy and the Portfolio Guidelines. Meeting minutes will be prepared by the appointed Secretary of the Investment Committee and circulated to the Approvers for approval. Any additional approved investment strategy or policy will be provided to the Investment Adviser for implementation. The Investment Adviser will also comply with tax strategies as approved and communicated by Pecan Re’s CFO.

MANAGED PORTFOLIO PARAMETERS

The following sections contain the Managed Portfolio Parameters:

 

	
I.
	
Performance Objectives, Restrictions, Indicators & Evaluation

	
 
	
 

	
II.
	
Investment Directives

	
 
	
 

	
III.
	
Limits

	
 
	
 

	
IV.
	
Accounting & Valuation

	
 
	
 

	
Appendix: 
	
Pecan Re Investment Portfolio Guidelines

 

As of March 31, 2016

17

 

	
I.
	
Performance Objectives, Restrictions, Indicators & Evaluation

Objectives for Pecan Re Investments

	
1.
	
To allow PLIC to take statutory financial statement credit for the reinsurance under the Coinsurance Agreement.

	
2.
	
To maximize Net Investment Income (“NII”) while preserving invested capital subject to the requirements and restrictions of the reinsurance businesses.

	
3.
	
To provide adequate liquidity to meet claims or other cash needs.

	
4.
	
Any other specific objective agreed to in writing by the Approvers and communicated to the Investment Adviser.

Restrictions

The Managed Portfolio Parameters must initially be approved by the Division and the Division shall have prior approval rights as set forth herein to the following changes to the Managed Portfolio Parameters and the Pecan Re Investment Portfolio Guidelines: (i) adding LOCs (as defined below) to the Managed Portfolio; (ii) changes to the Concentration Limits (as defined below) and Limits (as defined below); (iii) any exception to any Limit resulting from new investment purchases if such exception is in excess of 20%; and (iv) any exceptions to Eligible Investments.

Included within the requirements of M.G.L. c. 175, §20A and 211 CMR 130.07, there are allowable trust assets known as “evergreen” letters of credit (“LOCs”) issued or confirmed by qualified U.S. financial institutions. Prior to any LOCs becoming part of the assets of the Managed Portfolio, prior approval of the Division must be obtained.

Performance Evaluation

Investment results will be evaluated over the appropriate time horizons. There must be a quarterly “Investment Review” with attendance by the Investment Adviser’s investment team for the Managed Portfolio and the Approvers (or their designees). At least two members of the Investment Committee must be present at each Investment Review. The review will encompass:

	
•
	
Portfolio Composition – Snapshot showing: money-market placements and new purchases and sales

	
•
	
Actual performance versus Performance Indicators

	
•
	
Portfolio DV01 Sensitivity – aggregated by all bonds in these four tenor buckets: 0-2 years; 2-5 years; 5-10 years; and 10+ years, for the following market risk factors:

	
 
	
•
	
parallel shifts of the yield curve

	
 
	
•
	
changes in the slope of the yield curve

	
 
	
•
	
changes in corporate credit spreads

	
 
	
•
	
changes in mortgage spreads

	
•
	
Material credit migrations where an investment-grade credit has migrated to below investment grade or any of Moody’s, Fitch or S&P have noted a 3-rating category migration for any investment grade credit or a 1-rating category migration for any below-investment grade credit

	
•
	
Limit excesses and exceptions (including derivatives)

	
•
	
A list of securities that are being closely watched due to material potentially adverse consequences The Managed Portfolio’s performance will also be evaluated at least annually by the Approvers with the Investment Adviser’s senior management, concurrently with the budgeting process.

The Managed Portfolio’s performance will also be evaluated at least annually by the Approvers with the Investment Adviser’s senior management, concurrently with the budgeting process.

As of March 31, 2016

18

 

Performance Indicators

	
 
	
•
	
NII vs. Budget

	
 
	
•
	
Actual vs. Target asset allocation

	
 
	
•
	
Realized gains and losses vs. Budget

	
 
	
•
	
Other Benchmarks as agreed to by the parties in Writing

	
II.
	
Investment Directives

Unrealized Loss Triggers

All securities with declines in market value by more than 20% will be included in the quarterly Investment Review.

Restructurings

Any restructuring of an investment in workout that exceeds $10MM in value must be discussed with the

Approvers in the quarterly Investment Review and an action plan shall be presented to the Approvers by the Investment Adviser.

Duration

The duration of the Managed Portfolio shall be managed in recognition of the mix of liabilities, the liability profile, and the projected reinsurance cash flows of Pecan Re as reviewed periodically.

Liquidity

The liquidity of the overall Managed Portfolio must be adequate to meet its emerging liability cash flows.

Asset Quality

The Managed Portfolio will have a weighted average credit quality for debt and preferred stock of at least A3/A-/A- on a rating agency basis. The Barclays methodology (namely, when the security is rated by more than one rating agency, use the second lowest rating and if only one rating, then that rating will be used) will be used for this average. If no rating agency has provided a rating for an asset, the internal investment rating will be used.

As of March 31, 2016

19

 

	
III.
	
Concentration Limits

Monitoring of Limits

Exposures against the Concentration Limits stated in Exhibit I to the Appendix (“Concentration Limits”) and any other guideline in this Operating Policy or the Portfolio Guidelines (collectively, the “Limits”) shall be monitored daily.

New Exceptions to Limits

	
•
	
An exception to any Limit resulting from new investment purchases must be pre-approved by the Approvers and if any such exception is in excess of 20% of such relevant Limit, such exception must be pre-approved by the Division. The exception request must include a reason for the purchase and a timeframe for reviewing the exception and deciding on the action to be taken upon review.

	
•
	
An exception to any Limit that is caused by a rating migration must be approved by the CFO of Pecan Re if it is in excess of 10% of such relevant Limit and if it has not been resolved within 5 days. Any such exceptions that remain unresolved within 30 days must be approved by the Approvers. Further, any such exceptions that exceed 15% of such relevant Limit and remain unresolved within 45 days must be approved by the Division. Over limit issues caused by investment downgrades are included in the quarterly Investment Review.

Existing Exceptions to Limits

For existing names in excess of any Limit, the Investment Adviser will provide the Approvers in the quarterly Investment Review an update for exposures over these Limits including a plan for bringing exposures to within approved Limits or a recommendation to approve the over-Limit exception for a specified or indefinite time period.

	
IV.
	
Accounting & Valuation

	
•
	
The Investment Adviser must have documented policies that comply with U.S. GAAP, Statutory Accounting Principles, and other foreign reporting requirements as needed.

	
•
	
The policies must include independent verification of the valuation process.

As of March 31, 2016

20

 

Appendix:

Pecan Re Inc.

Investment Portfolio Guidelines

As of March 31, 2016

21

 

Pecan Re Inc.

Investment Portfolio Guidelines

	
A.
	
ELIGIBLE INVESTMENTS

The Managed Portfolio(s) may be invested in the following “Eligible Investments”. All investments must be in compliance with Massachusetts Insurance Regulations. All Eligible Investments will be denominated in U.S. dollars. Any exceptions to the following list of Eligible Investments must be pre-approved by the Approvers and the Division.

	
 
	
A.I.
	
Investment Securities

The Investment Adviser is hereby authorized to approve purchases of the following securities (“Investment Securities”) in accordance with the Concentration Limits and the other Portfolio Restrictions:

	
a.
	
obligations of the U.S. Government and of any agency of the U.S. Government, directly guaranteed or insured by the U.S. Government, including the following:

	
 
	
(1)
	
Farmers Home Administration (FMHA)

	
 
	
(2)
	
Financial Assistance Corporation (FAC)

	
 
	
(3)
	
Government National Mortgage Association (GNMA)

	
 
	
(4)
	
Federal Housing Administration (FHA)

	
 
	
(5)
	
Housing and Urban Development Corp. (HUD)

	
 
	
(6)
	
Veterans Administration (VA)

Any other agencies not guaranteed are subject to the corporate limitations based on ratings;

	
b.
	
bonds, notes or obligations issued, assumed or guaranteed by the International Bank for Reconstruction and Development (World Bank), the International Finance Corporation, the Inter- American Development Bank, the Asian Development Bank or the African Development Bank;

	
c.
	
obligations payable in U.S. dollars of:

	
 
	
(1)
	
U.S. public utilities

	
 
	
(2)
	
U.S. industrial, commercial, or financial companies

	
 
	
(3)
	
U.S. government agencies not included under (a) above;

	
d.
	
obligations of state and local governments and agencies of state and local governments;

	
e.
	
mortgage pass-through obligations and collateralized mortgage obligations;

	
f.
	
asset backed and commercial mortgage-backed securities;

	
g.
	
preferred stock, convertible bonds and other convertible securities, except for the securities of Citigroup, Swiss Reinsurance Company Ltd, Primerica, Inc. or the Investment Adviser or any affiliated issuers of any of Citigroup, Swiss Reinsurance Company Ltd or Primerica, Inc. or the Investment Adviser;

	
h.
	
International and emerging markets securities (NAIC 1 or 2 only), issued in the public or 144A markets;

	
i.
	
private placements including tax advantaged structures (e.g., CAPCO), securitizations, structured and secured transactions and mezzanine financings offered by the issuer relying on a private placement exemption; and

	
j.
	
securities or other interests in investment vehicles including investment subsidiaries, loan participations, mutual funds and exchange-traded funds.

As of March 31, 2016

22

 

	
 
	
A.II.
	
Money Market Securities

The Investment Adviser is hereby authorized to approve purchases of the following securities (“Money Market Securities”) in accordance with the Concentration Limits and the other Portfolio Restrictions.

	
a.
	
securities described under Section 1(a), (b) and (e) above;

	
b.
	
commercial paper (other than that issued by Citibank or Swiss Reinsurance Company Ltd) maturing in one year or less of issuers described in Section 1(c) above, rated no less than A1 (S&P or Fitch) or P1 (Moody’s); or if not rated, is issued by a company which at the date of investment has an outstanding debt issue rated AAA or AA (S&P or Fitch) or Aaa or Aa (Moody’s), medium-term notes and short-term private placements, loan participations and mutual funds;

	
c.
	
corporate obligations that at the time of purchase have an original maturity of one year or less and at the time of investment are rated investment grade or higher;

	
d.
	
obligations of domestic banks (other than Citibank) or trust companies, each with capital, surplus and undivided profits in excess of $500 million and maturing in one year or less, such as certificates of deposit, banker’s acceptances, time deposits, and bank notes (includes obligations of foreign branches of the United States banks and United States branches or agencies of foreign banks meeting these requirements);

	
e.
	
obligations of foreign banks, each with capital, surplus and undivided profits in excess of $500 million and maturing in one year or less, such as certificates of deposit, banker’s acceptances, time deposits, bank notes and discount notes; and

	
f.
	
asset-backed securities (other than those issued by Citibank).

	
B.
	
INVESTMENT AUTHORITIES

	
 
	
B.I.
	
Concentration Limits

	
•
	
Concentration Limits apply to all Eligible Investments except United States government, agency securities or other securities that are backed by the full faith and credit of the United States government.

	
•
	
Concentration Limits are based on the sum of the statutory carry values (or cost/amortized cost in the case of a non-admitted asset) of all holdings of an issuer or group of related issuers.

	
•
	
For purposes of which level of Concentration Limit should be used when aggregating all related issuers, the rating of the common ultimate credit party (e.g., the parent) shall be used. If there is no credit party other than the issuer or there are no affiliated issuers, then the rating of the single issuer (or its underlying credit) shall be used.

	
 
	
•
	
Although it is generally expected that a related issuer will be an entity that is considered an affiliate (i.e., controls, is controlled by, or under common control with, the issuer in question) in determining whether an entity is a related issuer for these purposes, the Investment Adviser may take into account such factors that it deems relevant and shall indicate in the Investment Review whether or not the issuer is deemed to be related to such other issuer and to the extent the Investment Adviser recommends separation of the issuers, any activity based on such recommendation shall require the approval of the Approvers.

	
•
	
Concentration Limits and other Limits will be reviewed periodically at the discretion of the portfolio manager appointed to the Managed Portfolio by the Investment Adviser (“Portfolio Manager”) with any proposed changes to be approved by the Approvers and the Division before implementation.

As of March 31, 2016

23

 

	
 
	
B.II.
	
Aggregate Amounts

	
a.
	
The “Aggregate Amount” for Eligible Investments is defined as the total amount outstanding by an issuer or group of related issuers of Eligible Investments in the Managed Portfolio. The Aggregate Amount is the sum of the statutory carry values or cost/amortized cost in the case of a non-admitted asset, of all holdings of an issuer or group of related issuers and will take into account the credit exposure to derivative counterparties.

The Aggregate Amount for pass throughs and CMOs is defined as the total outstanding amount by an agency issuer or investment grade private label issuer in the Managed Portfolio. The Aggregate Amount is the sum of the statutory carry values of all holdings of any agency. Agency issuers are GNMA, FNMA, FHLMC, HUD, FHA, and VA or any issue collateralized by these securities.

	
b.
	
When calculating the Aggregate Amount for non-agency collateralized mortgage-backed securities or asset-backed securities, each trust issuer being purchased will generally be considered separately from the other similarly serviced trust and underlying servicing company/sponsor originator so long as the Investment Adviser determines that there is no cross-collateralization or cross defaults or other factors that would cause it to view such issuers to be related from a credit perspective. Non-agency issues (e.g., PruHome, Nascor, GECC, Countrywide and RFC) are backed by whole loans, and are not considered exposure to the originator.

(For example, the Aggregate Amount calculation for purchases of a Ford Motor Credit asset-backed security will not generally include the Managed Portfolio’s exposure to Ford or vice versa. Also, purchases of Ford Credit Auto Lease Trust’s asset-backed security will not generally include the Managed Portfolio’s exposure to Ford or Ford Credit Auto Owner Trusts or vice versa.)

	
 
	
B.III.
	
Ratings

Except as provided in the Portfolio Restrictions stated below with respect to below investment grade securities, all other ratings shall be determined using the Barclays methodology or, where no external rating is available, internal investment quality rating of the class of securities being purchased, and is based on the underlying credit. In the Investment Review, the Portfolio Manager may recommend that the rating of any party providing credit enhancement should also be taken into account in determining the rating of the security and if so approved by the Approvers, the rating of the security may thereafter be determined to be different from that of the underlying credit due to such third party credit enhancement.

	
 
	
B.IV.
	
Credit Authority

For mortgage-backed securities, forward transactions (purchase, sale and dollar rolls) are permitted only with counterparties that have been approved by the Investment Adviser and Approvers; forward transactions are any transactions settling more than two weeks from the current date.

	
 
	
B.V.
	
Trading Authority

The Investment Adviser is hereby authorized to execute the purchase of Eligible Investments conforming to the Concentration Limits and the other Portfolio Restrictions and any sales of such investments.

	
C.
	
INVESTMENT COMMITTEE

The Investment Committee shall review the investment results of the Managed Portfolio, investment policies and strategies. The members of the Investment Committee may be changed from time to time by the Board of Directors of Pecan Re.

For purposes of these Portfolio Guidelines, required Investment Committee approvals (as part of the “Approvers” group) shall pass with agreement of a majority of the Investment Committee acting in person, by telephone or by written consent.

As of March 31, 2016

24

 

	
D.
	
PORTFOLIO RESTRICTIONS

	
1.
	
Restricted Issuers

Citigroup, Swiss Reinsurance Company Ltd, Primerica, Inc., Prime Re, Pecan Re or the Investment Adviser or any of their respective affiliates that issue common stock and debt instruments where the credit is Citigroup, Swiss Reinsurance Company Ltd, Primerica, Inc., Prime Re, Pecan Re or the Investment Adviser, respectively, or an affiliate of any, may not be purchased.

	
2.
	
Money Market Securities

Money market securities will not exceed a maturity of one year.

	
3.
	
Debt-Like Securities

Non-redeemable preferred stock shall be treated as debt and will not exceed 10% of the total investment in the Managed Portfolio. Convertible preferred stock will not count toward the non-redeemable preferred stock limit.

Convertible debt and convertible preferred stocks shall be treated as debt. Total investments in these convertible debt and convertible preferred securities may not exceed 3% of the total investment in the Managed Portfolio.

Preferred stock and convertible debt securities which are rated below investment grade are not permitted.

	
4.
	
Domestic and Foreign Investment Grade Corporate and Rule 144A Securities

Total investments in domestic, foreign and Rule 144A investment grade corporate investments will not exceed 75% of the total investment in the Managed Portfolio. This includes debt and redeemable preferred securities.

	
5.
	
Privately Placed Debt

Total investments in privately placed debt will not exceed 15% of the total investment in the Managed Portfolio.

	
6.
	
Asset-Backed Securities

Total investments in asset-backed securities will not exceed 25% of the total investment in the Managed Portfolio.

	
7.
	
Mortgage-Backed Pass Through Securities

Total investments in mortgage-backed (pass through and CMO’s) securities will not exceed 25% of the total investment in the Managed Portfolio.

	
8.
	
Public/Private Tax Exempt Securities

Total investments in public/private tax exempt securities will not exceed 2% of the total investment in the Managed Portfolio.

	
9.
	
Commercial Mortgage-Backed Securities

Total investments in commercial mortgage-backed securities will not exceed 15% of the total investment in the Managed Portfolio.

As of March 31, 2016

25

 

	
10.
	
Investment in Foreign Issuers

The aggregate investment in securities issued by entities organized in a jurisdiction other than the United States (“Cross-Border Investments”) will be denominated in U.S. dollars and will not exceed the lesser of (i) 25% of the total investments in the Managed Portfolio or (ii) the foreign basket limitation stated in the relevant state regulations. Canadian investments owned by the Managed Portfolio shall not be subject to this limit. Cross-Border Investments shall also be subject to the aggregate limits specified in Exhibit IV for the countries specified therein, as modified from time to time by the Approvers.

	
11.
	
Multiple Limits

A security or investment falling under more than one Limit shall be subject to each of such applicable Limits.

	
12.
	
Below Investment Grade Securities

There will be no purchases made other than securities rated NAIC 1 or 2.

As of March 31, 2016

26

 

EXHIBIT I

Concentration Limits per Issuer

 

	
Rating
	
 
	
2016
	
 
	
2017
	
 
	
2018
	
 
	
2019
	
 
	
2020
	
 
	
2021
	
 
	
2022+

	
AAA
	
 
	
$27.61
	
 
	
$31.45
	
 
	
$35.38
	
 
	
$41.55
	
 
	
$48.49
	
 
	
$54.04
	
 
	
$57.52

	
AA
	
 
	
23.37
	
 
	
26.61
	
 
	
29.94
	
 
	
35.16
	
 
	
41.03
	
 
	
45.73
	
 
	
48.67

	
A1-Baa1
	
 
	
19.12
	
 
	
21.77
	
 
	
24.49
	
 
	
28.77
	
 
	
33.57
	
 
	
37.41
	
 
	
39.82

	
Baa2-Baa3
	
 
	
14.87
	
 
	
16.93
	
 
	
19.05
	
 
	
22.37
	
 
	
26.11
	
 
	
29.10
	
 
	
30.97

 

Dollars ($) are in millions.

As of March 31, 2016

27

 

EXHIBIT II

Approvers (Joint)

(1) Investment Committee

Abigail Cole

Brian Lo

David Bell

John Gribbon

(2) Pecan Re CFO

John Gribbon

(3) Senior Risk Manager

Kathryn Hyland

(4) PLIC Designee

Michael Wells or designee

As of March 31, 2016

28

 

EXHIBIT III

Managed Portfolio

345846 – Pecan Funded Reserves Trust Account

As of March 31, 2016

29

 

EXHIBIT IV

Cross-Border Limits by Country in Millions of U.S. Dollars

 

	
 
	
 
	
PRC
	
 
	
 
	
 
	
PRC

	
 
	
 
	
Cross Border
	
 
	
 
	
 
	
Cross Border

	
Country
	
 
	
Limits
	
 
	
Country
	
 
	
Limits

	
ALGERIA
	
 
	
0
	
 
	
KAZAKHSTAN
	
 
	
0

	
ARGENTINA
	
 
	
0.4
	
 
	
KENYA
	
 
	
0

	
ARUBA
	
 
	
.08
	
 
	
LATVIA
	
 
	
0

	
AUSTRALIA
	
 
	
No Limit
	
 
	
LEBANON
	
 
	
0

	
BARBADOS
	
 
	
7.5
	
 
	
LIBERIA
	
 
	
0

	
BELGIUM
	
 
	
No Limit
	
 
	
LITHUANIA
	
 
	
0

	
BELIZE
	
 
	
0
	
 
	
LUXEMBOURG
	
 
	
No Limit

	
BERMUDA
	
 
	
No Limit
	
 
	
MACEDONIA
	
 
	
0

	
BOLIVIA
	
 
	
0
	
 
	
MALAYSIA
	
 
	
7.5

	
BOSNIA
	
 
	
0
	
 
	
MEXICO
	
 
	
55

	
BRAZIL
	
 
	
30
	
 
	
MOROCCO
	
 
	
0.8

	
BRITISH VIRGIN ISLANDS
	
 
	
0
	
 
	
NETHERLANDS
	
 
	
No Limit

	
BULGARIA
	
 
	
0
	
 
	
NEW ZEALAND
	
 
	
No Limit

	
CAMEROON
	
 
	
0
	
 
	
NICARAGUA
	
 
	
0

	
CANADA
	
 
	
No Limit
	
 
	
NIGERIA
	
 
	
0

	
CAYMAN ISLANDS
	
 
	
No Limit
	
 
	
NORWAY
	
 
	
No Limit

	
CHILE
	
 
	
7.5
	
 
	
OMAN
	
 
	
0

	
CHINA
	
 
	
7.5
	
 
	
PAKISTAN
	
 
	
0

	
COLOMBIA
	
 
	
11.25
	
 
	
PANAMA
	
 
	
7.5

	
COSTA RICA
	
 
	
7.5
	
 
	
PERU
	
 
	
11.25

	
CROATIA
	
 
	
0
	
 
	
PHILIPPINES
	
 
	
7.5

	
CYPRUS
	
 
	
0
	
 
	
POLAND
	
 
	
11.25

	
CZECH REPUBLIC
	
 
	
7.5
	
 
	
QATAR
	
 
	
22.50

	
DENMARK
	
 
	
No Limit
	
 
	
ROMANIA
	
 
	
0

	
DOMINICAN REPUBLIC
	
 
	
0
	
 
	
RUSSIA
	
 
	
0

	
ECUADOR
	
 
	
0
	
 
	
SERBIA
	
 
	
0

	
EGYPT
	
 
	
0
	
 
	
SINGAPORE
	
 
	
No Limit

	
EL SALVADOR
	
 
	
0.3
	
 
	
SLOVAKIA
	
 
	
0

	
ESTONIA
	
 
	
0
	
 
	
SLOVENIA
	
 
	
0

	
FINLAND
	
 
	
No Limit
	
 
	
SOUTH AFRICA
	
 
	
4.1

	
FRANCE
	
 
	
No Limit
	
 
	
SOUTH KOREA
	
 
	
15

	
GERMANY
	
 
	
No Limit
	
 
	
SPAIN
	
 
	
No Limit

	
GRENADA
	
 
	
0
	
 
	
SUPRANATIONAL
	
 
	
No Limit

	
GUATEMALA
	
 
	
0
	
 
	
SWEDEN
	
 
	
No Limit

	
HONDURAS
	
 
	
0
	
 
	
SWITZERLAND
	
 
	
No Limit

	
HONG KONG
	
 
	
No Limit
	
 
	
TAIWAN
	
 
	
No Limit

	
HUNGARY
	
 
	
0
	
 
	
THAILAND
	
 
	
0

	
ICELAND
	
 
	
0
	
 
	
TRINIDAD
	
 
	
0

	
INDIA
	
 
	
22.5
	
 
	
TUNISIA
	
 
	
7.5

	
IRELAND
	
 
	
No Limit
	
 
	
TURKEY
	
 
	
0

	
ISRAEL
	
 
	
9
	
 
	
UKRAINE
	
 
	
0

	
ITALY
	
 
	
No Limit
	
 
	
UNITED KINGDOM
	
 
	
No Limit

	
IVORY COAST
	
 
	
0
	
 
	
URUGUAY
	
 
	
7.5

	
JAMAICA
	
 
	
0
	
 
	
VENEZUELA
	
 
	
0

	
JAPAN
	
 
	
22.5
	
 
	
VIETNAM
	
 
	
0

	
JORDAN
	
 
	
0
	
 
	
 
	
 
	
 

 

As of March 31, 2016

30

 

Prime Reinsurance Company, Inc.

Operating Policy and

Investment Portfolio Guidelines

(for the Prime-Funded Reserves Trust Account)

 

As of March 31, 2016

31

 

Prime Reinsurance Company, Inc.

Pecan Re Inc. (“Pecan Re”) under the Trust Agreement (as defined below) shall be responsible for complying with the terms of the Trust Agreement and the Operating Policy and Investment Portfolio Guidelines. One of the purposes of the Trust Agreement is to permit Primerica Life Insurance Company (“PLIC”), in accordance with the Code of Massachusetts Regulations, 211 CMR 130.10, to take statutory financial statement credit for the reinsurance under the Coinsurance Agreement (as defined below).

Pecan Re and PLIC are parties to an 80% Coinsurance Agreement, pursuant to which Pecan Re reinsures 80% of certain of PLIC’s liabilities and benefits associated with its term life insurance business in force as of December 18, 2009 (the “Coinsurance Agreement”). In connection with the Coinsurance Agreement, Pecan Re will maintain two trust accounts. In connection with the Coinsurance Agreement, statutory reserves in excess of an amount of reserves set forth on an agreed schedule set forth in the Collateralized Stop Loss Reinsurance Agreement, dated as of [●], by and between Pecan Re and Prime Reinsurance Company, Inc. (“PRC”) will be funded by Pecan Re and maintained in a trust with Pecan Re receiving interest from the trust (the “Pecan-Funded Reserve Trust Account”) and an amount of reserves set forth on such agreed schedule will be funded by PRC and maintained in a separate trust (the “Prime-Funded Reserve Trust Account”, together with the Pecan-Funded Reserve Trust Account, the “Trust Accounts”). The Trust Accounts were established pursuant to a trust agreement among Pecan Re, PLIC and Trustee, entered into simultaneously with the Coinsurance Agreement (the “Trust Agreement”).

Operating Policy

The objective of this Operating Policy is to identify and document investment parameters (“Managed Portfolio Parameters”) related to the Managed Portfolio (defined as certain investment accounts owned by those legal entities listed in Exhibit III to the Appendix).

This Operating Policy must be approved by PRC’s Investment Committee whose members are listed in Exhibit II to the Appendix (“Investment Committee”), the Citi Holdings Treasurer designee, the Senior Risk Manager or designee and the PLIC designee each named in Exhibit II to the Appendix (jointly, the “Approvers”), the Massachusetts Division of Insurance (the “Division”) and agreed to by any investment adviser registered under the Investment Advisers Act of 1940 that has been formally appointed by PRC (“Investment Adviser”) from time to time. The Operating Policy and the Portfolio Guidelines (attached as the Appendix) may only be amended with the joint approval of the Approvers and agreed to by the Investment Adviser and certain amendments to the Managed Portfolio Parameters must be approved by the Division; provided that Exhibit II and Exhibit IV may be amended by the Approvers without the approval of the Division or the consent of the Investment Adviser and the constituency of the Investment Committee may be changed from time to time solely by the Board of Directors of PRC. Exhibit IV may be updated at the request of the Senior Risk Manager’s approver (Exhibit II) and communicated to the Investment Advisor.

The Managed Portfolio will be managed in compliance with all relevant laws and regulations including (i) limitations and regulations applied on a legal entity basis under the investment laws of each relevant state, (ii) requirements that transactions between affiliates be on terms that are fair and reasonable under the holding company acts, including Sections 23A and 23B of the Bank Holding Company Act and (iii) the requirements of M.G.L. c. 175, §20A and 211 CMR 130.07.

In addition, the Managed Portfolio will be managed by the Investment Adviser according to and in compliance with this Operating Policy and the Portfolio Guidelines. Meeting minutes will be prepared by the appointed Secretary of the Investment Committee and circulated to the Approvers for approval. Any additional approved investment strategy or policy will be provided to the Investment Adviser for implementation. The Investment Adviser will also comply with tax strategies as approved and communicated by PRC’s CFO.

As of March 31, 2016

32

 

MANAGED PORTFOLIO PARAMETERS

The following sections contain the Managed Portfolio Parameters:

 

	
I.
	
Performance Objectives, Restrictions, Indicators & Evaluation

	
 
	
 

	
II.
	
Investment Directives

	
 
	
 

	
III.
	
Limits

	
 
	
 

	
IV.
	
Accounting & Valuation

	
 
	
 

	
Appendix: 
	
PRC Investment Portfolio Guidelines

	
I.
	
Performance Objectives, Restrictions, Indicators & Evaluation

Objectives for PRC Investments

	
1.
	
To maximize PRC’s Net Investment Income (“NII”) while preserving invested capital subject to the requirements and restrictions of the Collateralized Stop Loss Reinsurance Agreement.

	
2.
	
To provide adequate liquidity to meet payments under the Collateralized Stop Loss Reinsurance Agreement or other cash needs.

	
3.
	
.Any other specific objective agreed to in writing by the Approvers and communicated to the Investment Adviser.

Restrictions

The Managed Portfolio Parameters must initially be approved by the Division and the Division shall have prior approval rights as set forth herein to the following changes to the Managed Portfolio Parameters and the PRC Investment Portfolio Guidelines: (i) adding LOCs (as defined below) to the Managed Portfolio; (ii) changes to the Concentration Limits (as defined below) and Limits (as defined below); (iii) any exception to any Limit resulting from new investment purchases if such exception is in excess of 20%; (iv) any exception to any Limit that is caused by a rating migration if such exception is in excess of 15% and remains unresolved within 45 days; and (v) any exceptions to Eligible Investments.

Included within the requirements of M.G.L. c. 175, §20A and 211 CMR 130.07, there are allowable trust assets known as “evergreen” letters of credit (“LOCs”) issued or confirmed by qualified U.S. financial institutions. Prior to any LOCs becoming part of the assets of the Managed Portfolio, prior approval of the Division must be obtained.

Performance Evaluation

Investment results will be evaluated over the appropriate time horizons. There must be a monthly “Investment Review” with attendance by the Investment Adviser’s investment team for the Managed

Portfolio and the Approvers (or their designees). At least two members of the Investment Committee must be present at each Investment Review. The review will encompass:

	
•
	
Portfolio Composition – Snapshot showing: money-market placements and new purchases and sales

	
•
	
Actual performance versus Performance Indicators

	
•
	
Portfolio DV01 Sensitivity – aggregated by all bonds in these four tenor buckets: 0-2 years; 2-5 years; 5-10 years; and 10+ years, for the following market risk factors:

	
 
	
•
	
parallel shifts of the yield curve

	
 
	
•
	
changes in the slope of the yield curve

	
 
	
•
	
changes in corporate credit spreads

	
 
	
•
	
changes in mortgage spreads

As of March 31, 2016

33

 

	
•
	
Material credit migrations where an investment-grade credit has migrated to below investment grade or any of Moody’s, Fitch or S&P have noted a 3-rating category migration for any investment grade credit or a 1-rating category migration for any below-investment grade credit

	
•
	
Limit excesses and exceptions (including derivatives)

	
•
	
A list of securities that are being closely watched due to material potentially adverse consequences

The Managed Portfolio’s performance will also be evaluated at least annually by the Approvers with the Investment Adviser’s senior management, concurrently with the budgeting process.

Performance Indicators

	
 
	
•
	
NII vs. Budget

	
 
	
•
	
Actual vs. Target asset allocation

	
 
	
•
	
Realized gains and losses vs. Budget

	
 
	
•
	
Other Benchmarks as agreed to by the parties in writing

	
II.
	
Investment Directives

Realized Gains and Losses / Trading Parameters

The realization of gains on security sales greater than $5MM per calendar quarter or in excess of $1MM gain per transaction must be pre approved by PRC’s CFO. The realization of losses must be made in accordance with PRC’s Other Than Temporary Impairment (OTTI) policy.

Unrealized Loss Triggers

All securities with declines in market value by more than 20% will be included in the monthly Investment

Review.

Restructurings

Any restructuring of an investment in workout that exceeds $10MM in value must be discussed with the Approvers in the monthly Investment Review and an action plan shall be presented to the Approvers by the Investment Adviser.

Impairments

Unrealized losses will be reviewed in accordance with PRC’s OTTI policy. PRC will work with Citigroup as is appropriate.

Duration

The overall effective duration of the Managed Portfolio is to be maintained at 10 years or less.

Liquidity

The liquidity of the overall Managed Portfolio must be adequate to meet its emerging liability cash flows.

As of March 31, 2016

34

 

Asset Quality

The Managed Portfolio will have a weighted average credit quality for debt and preferred stock of at least A3/A-/A- on a rating agency basis. The Barclays methodology (namely, when the security is rated by more than one rating agency, use the second lowest rating and if only one rating, then that rating will be used) will be used for this average. If no rating agency has provided a rating for an asset, the internal investment rating will be used.

	
III.
	
Concentration Limits

Monitoring of Limits

Exposures against the Concentration Limits stated in Exhibit I to the Appendix (“Concentration Limits”) and any other guideline in this Operating Policy or the Portfolio Guidelines (collectively, the “Limits”) shall be monitored daily.

New Exceptions to Limits

	
•
	
An exception to any Limit resulting from new investment purchases must be pre-approved by the Approvers and if any such exception is in excess of 20% of such relevant Limit, such exception must be pre-approved by the Division. The exception request must include a reason for the purchase and a timeframe for reviewing the exception and deciding on the action to be taken upon review.

	
•
	
An exception to any Limit that is caused by a rating migration must be approved by the Senior Risk Manager of the Approvers if it is in excess of 10% of such relevant Limit and if it has not been resolved within 1 day. Any such exceptions that remain unresolved within 30 days must be approved by the Approvers. Further, any such exceptions that exceed 15% of such relevant Limit and remain unresolved within 45 days must be approved by the Division. Over limit issues caused by investment downgrades are included in the monthly Investment Review.

Existing Exceptions to Limits

For existing names in excess of any Limit, the Investment Adviser will provide the Approvers in the monthly Investment Review an update for exposures over these Limits including a plan for bringing exposures to within approved Limits or a recommendation to approve the over-Limit exception for a specified time period.

	
IV.
	
Accounting & Valuation

	
•
	
The Investment Adviser must have documented policies that comply with U.S. GAAP, Statutory Accounting Principles, and other foreign reporting requirements as needed.

	
•
	
The policies must include independent verification of the valuation process.

	
•
	
The policies must be approved by PRC’s CFO.

As of March 31, 2016

35

 

Appendix:

Prime Reinsurance Company, Inc.

Investment Portfolio Guidelines

As of March 31, 2016

36

 

Prime Reinsurance Company, Inc.

Investment Portfolio Guidelines

	
A.
	
ELIGIBLE INVESTMENTS

The Managed Portfolio(s) may be invested in the following “Eligible Investments”. All investments must be in compliance with Massachusetts Insurance Regulations. All Eligible Investments will be denominated in U.S. dollars. Any exceptions to the following list of Eligible Investments must be pre-approved by the Approvers and the Division.

	
 
	
A.I.
	
Investment Securities

The Investment Adviser is hereby authorized to approve purchases of the following securities (“Investment Securities”) in accordance with the Concentration Limits and the other Portfolio Restrictions: 

	
a.
	
obligations of the U.S. Government and of any agency of the U.S. Government, directly guaranteed or insured by the U.S. Government, including the following:

	
 
	
(1)
	
Farmers Home Administration (FMHA)

	
 
	
(2)
	
Financial Assistance Corporation (FAC)

	
 
	
(3)
	
Government National Mortgage Association (GNMA)

	
 
	
(4)
	
Federal Housing Administration (FHA)

	
 
	
(5)
	
Housing and Urban Development Corp. (HUD)

	
 
	
(6)
	
Veterans Administration (VA)

Any other agencies not guaranteed are subject to the corporate limitations based on ratings;

	
b.
	
bonds, notes or obligations issued, assumed or guaranteed by the International Bank for Reconstruction and Development (World Bank), the International Finance Corporation, the Inter-American Development Bank, the Asian Development Bank or the African Development Bank;

	
c.
	
obligations payable in U.S. dollars of:

	
 
	
(1)
	
U.S. public utilities

	
 
	
(2)
	
U.S. industrial, commercial, or financial companies

	
 
	
(3)
	
U.S. government agencies not included under (a) above;

	
d.
	
obligations of state and local governments and agencies of state and local governments;

	
e.
	
mortgage pass-through obligations and collateralized mortgage obligations;

	
f.
	
asset backed and commercial mortgage-backed securities;

	
g.
	
preferred stock, convertible bonds and other convertible securities, except for the securities of Citigroup, Swiss Reinsurance Company Ltd, Primerica, Inc. or the Investment Adviser or any affiliated issuers of any of Citigroup, Swiss Reinsurance Company Ltd or Primerica, Inc. or the Investment Adviser;

	
h.
	
International and emerging markets securities (NAIC 1 or 2 only), issued in the public or 144A markets;

	
i.
	
private placements including tax advantaged structures (e.g., CAPCO), securitizations, structured and secured transactions and mezzanine financings offered by the issuer relying on a private placement exemption; and

	
j.
	
securities or other interests in investment vehicles including investment subsidiaries, loan participations, mutual funds and exchange-traded funds.

As of March 31, 2016

37

 

	
 
	
A.II.
	
Money Market Securities

The Investment Adviser is hereby authorized to approve purchases of the following securities (“Money Market Securities”) in accordance with the Concentration Limits and the other Portfolio Restrictions.

	
a.
	
securities described under Section 1(a), (b) and (e) above;

	
b.
	
commercial paper (other than that issued by Citibank or Swiss Reinsurance Company Ltd) maturing in one year or less of issuers described in Section 1(c) above, rated no less than A1 (S&P or Fitch) or P1 (Moody’s); or if not rated, is issued by a company which at the date of investment has an outstanding debt issue rated AAA or AA (S&P or Fitch) or Aaa or Aa (Moody’s), medium-term notes and short-term private placements, loan participations and mutual funds;

	
c.
	
corporate obligations that at the time of purchase have an original maturity of one year or less and at the time of investment are rated investment grade or higher;

	
d.
	
obligations of domestic banks (other than Citibank) or trust companies, each with capital, surplus and undivided profits in excess of $500 million and maturing in one year or less, such as certificates of deposit, banker’s acceptances, time deposits, and bank notes (includes obligations of foreign branches of the United States banks and United States branches or agencies of foreign banks meeting these requirements);

	
e.
	
obligations of foreign banks, each with capital, surplus and undivided profits in excess of $500 million and maturing in one year or less, such as certificates of deposit, banker’s acceptances, time deposits, bank notes and discount notes; and

	
f.
	
asset-backed securities (other than those issued by Citibank).

	
B.
	
INVESTMENT AUTHORITIES

	
 
	
B.I.
	
Concentration Limits

	
•
	
Concentration Limits apply to all Eligible Investments except United States government, agency securities or other securities that are backed by the full faith and credit of the United States government.

	
•
	
Concentration Limits are based on the sum of the statutory carry values (or cost/amortized cost in the case of a non-admitted asset) of all holdings of an issuer or group of related issuers.

	
•
	
For purposes of which level of Concentration Limit should be used when aggregating all related issuers, the rating of the common ultimate credit party (e.g., the parent) shall be used. If there is no credit party other than the issuer or there are no affiliated issuers, then the rating of the single issuer (or its underlying credit) shall be used.

	
 
	
•
	
Although it is generally expected that a related issuer will be an entity that is considered an affiliate (i.e., controls, is controlled by, or under common control with, the issuer in question) in determining whether an entity is a related issuer for these purposes, the Investment Adviser may take into account such factors that it deems relevant and shall indicate in the Investment Review whether or not the issuer is deemed to be related to such other issuer and to the extent the Investment Adviser recommends separation of the issuers, any activity based on such recommendation shall require the approval of the Approvers.

	
•
	
Concentration Limits and other Limits will be reviewed periodically at the discretion of the portfolio manager appointed to the Managed Portfolio by the Investment Adviser (“Portfolio Manager”) with any proposed changes to be approved by the Approvers and the Division before implementation.

As of March 31, 2016

38

 

	
 
	
B.II.
	
Aggregate Amounts

	
a.
	
The “Aggregate Amount” for Eligible Investments is defined as the total amount outstanding by an issuer or group of related issuers of Eligible Investments in the Managed Portfolio. The Aggregate Amount is the sum of the statutory carry values or cost/amortized cost in the case of a non-admitted asset, of all holdings of an issuer or group of related issuers and will take into account the credit exposure to derivative counterparties.

The Aggregate Amount for pass throughs and CMOs is defined as the total outstanding amount by an agency issuer or investment grade private label issuer in the Managed Portfolio. The Aggregate Amount is the sum of the statutory carry values of all holdings of any agency. Agency issuers are GNMA, FNMA, FHLMC, HUD, FHA, and VA or any issue collateralized by these securities.

	
b.
	
When calculating the Aggregate Amount for non-agency collateralized mortgage-backed securities or asset-backed securities, each trust issuer being purchased will generally be considered separately from the other similarly serviced trust and underlying servicing company/sponsor originator so long as the Investment Adviser determines that there is no cross-collateralization or cross defaults or other factors that would cause it to view such issuers to be related from a credit perspective. Non-agency issues (e.g., PruHome, Nascor, GECC, Countrywide and RFC) are backed by whole loans, and are not considered exposure to the originator.

(For example, the Aggregate Amount calculation for purchases of a Ford Motor Credit asset-backed security will not generally include the Managed Portfolio’s exposure to Ford or vice versa. Also, purchases of Ford Credit Auto Lease Trust’s asset-backed security will not generally include the Managed Portfolio’s exposure to Ford or Ford Credit Auto Owner Trusts or vice versa.)

	
 
	
B.III.
	
Ratings

Except as provided in the Portfolio Restrictions stated below with respect to below investment grade securities, all other ratings shall be determined using the Barclays methodology or, where no external rating is available, internal investment quality rating of the class of securities being purchased, and is based on the underlying credit. In the Investment Review, the Portfolio Manager may recommend that the rating of any party providing credit enhancement should also be taken into account in determining the rating of the security and if so approved by the Approvers, the rating of the security may thereafter be determined to be different from that of the underlying credit due to such third party credit enhancement.

	
 
	
B.IV.
	
Credit Authority

For mortgage-backed securities, forward transactions (purchase, sale and dollar rolls) are permitted only with counterparties that have been approved by the Investment Adviser and Approvers; forward transactions are any transactions settling more than two weeks from the current date.

	
 
	
B.V.
	
Trading Authority

The Investment Adviser is hereby authorized to execute the purchase of Eligible Investments conforming to the Concentration Limits and the other Portfolio Restrictions and any sales of such investments. Sales at a loss must be in accordance with PRC’s OTTI policy.

	
C.
	
INVESTMENT COMMITTEE

The Investment Committee shall review the investment results of the Managed Portfolio, investment policies and strategies. The members of the Investment Committee may be changed from time to time by the Board of Directors of PRC.

For purposes of these Portfolio Guidelines, required Investment Committee approvals (as part of the “Approvers” group) shall pass with agreement of a majority of the Investment Committee acting in person, by telephone or by written consent.

As of March 31, 2016

39

 

	
D.
	
PORTFOLIO RESTRICTIONS

	
1.
	
Restricted Issuers

Citigroup, Swiss Reinsurance Company Ltd, Primerica, Inc., PRC, Pecan Re or the Investment Adviser or any of their respective affiliates that issue common stock and debt instruments where the credit is Citigroup, Swiss Reinsurance Company Ltd, Primerica, Inc., PRC, Pecan Re or the Investment Adviser, respectively, or an affiliate of any, may not be purchased.

	
2.
	
Money Market Securities

Money market securities will not exceed a maturity of one year.

	
3.
	
Debt-Like Securities

Non-redeemable preferred stock shall be treated as debt and will not exceed 10% of the total investment in the Managed Portfolio. Convertible preferred stock will not count toward the non-redeemable preferred stock limit.

Convertible debt and convertible preferred stocks shall be treated as debt. Total investments in these convertible debt and convertible preferred securities may not exceed 3% of the total investment in the Managed Portfolio.

Preferred stock and convertible debt securities which are rated below investment grade are not permitted.

	
4.
	
Domestic and Foreign Investment Grade Corporate and Rule 144A Securities

Total investments in domestic, foreign and Rule 144A investment grade corporate investments will not exceed 75% of the total investment in the Managed Portfolio. This includes debt and redeemable preferred securities.

	
5.
	
Privately Placed Debt

Total investments in privately placed debt will not exceed 15% of the total investment in the Managed Portfolio.

	
6.
	
Asset-Backed Securities

Total investments in asset-backed securities will not exceed 25% of the total investment in the Managed Portfolio.

	
7.
	
Mortgage-Backed Pass Through Securities

Total investments in mortgage-backed (pass through and CMO’s) securities will not exceed 25% of the total investment in the Managed Portfolio.

	
8.
	
Public/Private Tax Exempt Securities

Total investments in public/private tax exempt securities will not exceed 2% of the total investment in the Managed Portfolio.

	
9.
	
Commercial Mortgage-Backed Securities

Total investments in commercial mortgage-backed securities will not exceed 15% of the total investment in the Managed Portfolio.

As of March 31, 2016

40

 

	
10.
	
Investment in Foreign Issuers

The aggregate investment in securities issued by entities organized in a jurisdiction other than the United States (“Cross-Border Investments”) will be denominated in U.S. dollars and will not exceed the lesser of (i) 25% of the total investments in the Managed Portfolio or (ii) the foreign basket limitation stated in the relevant state regulations. Canadian investments owned by the Managed Portfolio shall not be subject to this limit. Cross-Border Investments shall also be subject to the aggregate limits specified in Exhibit IV for the countries specified therein, as modified from time to time by the Approvers.

	
11.
	
Multiple Limits

A security or investment falling under more than one Limit shall be subject to each of such applicable Limits.

	
12.
	
Below Investment Grade Securities

There will be no purchases made other than securities rated NAIC 1 or 2.

As of March 31, 2016

41

 

EXHIBIT I

Concentration Limits per Issuer

 

	
Rating
	
 
	
2016
	
 
	
2017
	
 
	
2018
	
 
	
2019
	
 
	
2020
	
 
	
2021
	
 
	
2022+

	
AAA
	
 
	
30.16
	
 
	
26.33
	
 
	
22.40
	
 
	
16.23
	
 
	
9.29
	
 
	
3.73
	
 
	
0.26

	
AA
	
 
	
25.52
	
 
	
22.28
	
 
	
18.95
	
 
	
13.73
	
 
	
7.86
	
 
	
3.16
	
 
	
0.22

	
A1-Baa1
	
 
	
20.88
	
 
	
18.23
	
 
	
15.51
	
 
	
11.23
	
 
	
6.43
	
 
	
2.59
	
 
	
0.18

	
Baa2-Baa3
	
 
	
16.24
	
 
	
14.18
	
 
	
12.06
	
 
	
8.74
	
 
	
5.00
	
 
	
2.01
	
 
	
0.14

 

Dollars ($) are in millions.

As of March 31, 2016

42

 

EXHIBIT II

Approvers (Joint)

(1) Investment Committee

Reza Shah

Francisco Tobias Marin

Laurie Hesslein

Pantelis Apessos

Keith Crider

Scott Van Pelt

(2) Citi Holdings Treasurer Designee

Pantelis Apessos

(3) Senior Risk Manager

Junaid Siddiqui

(4) PLIC Designee

Michael Wells or designee

As of March 31, 2016

43

 

EXHIBIT III

Managed Portfolio

345845 – Prime Funded Reserves Trust Account

As of March 31, 2016

44

 

EXHIBIT IV

Cross-Border Limits by Country in U.S. Dollars

 

	
 
	
 
	
PRC
	
 
	
 
	
 
	
PRC

	
 
	
 
	
Cross Border
	
 
	
 
	
 
	
Cross Border

	
Country
	
 
	
Limits
	
 
	
Country
	
 
	
Limits

	
ALGERIA
	
 
	
0
	
 
	
KAZAKHSTAN
	
 
	
0

	
ARGENTINA
	
 
	
0.4
	
 
	
KENYA
	
 
	
0

	
ARUBA
	
 
	
.08
	
 
	
LATVIA
	
 
	
0

	
AUSTRALIA
	
 
	
No Limit
	
 
	
LEBANON
	
 
	
0

	
BARBADOS
	
 
	
7.5
	
 
	
LIBERIA
	
 
	
0

	
BELGIUM
	
 
	
No Limit
	
 
	
LITHUANIA
	
 
	
0

	
BELIZE
	
 
	
0
	
 
	
LUXEMBOURG
	
 
	
No Limit

	
BERMUDA
	
 
	
No Limit
	
 
	
MACEDONIA
	
 
	
0

	
BOLIVIA
	
 
	
0
	
 
	
MALAYSIA
	
 
	
7.5

	
BOSNIA
	
 
	
0
	
 
	
MEXICO
	
 
	
55

	
BRAZIL
	
 
	
30
	
 
	
MOROCCO
	
 
	
0.8

	
BRITISH VIRGIN ISLANDS
	
 
	
0
	
 
	
NETHERLANDS
	
 
	
No Limit

	
BULGARIA
	
 
	
0
	
 
	
NEW ZEALAND
	
 
	
No Limit

	
CAMEROON
	
 
	
0
	
 
	
NICARAGUA
	
 
	
0

	
CANADA
	
 
	
No Limit
	
 
	
NIGERIA
	
 
	
0

	
CAYMAN ISLANDS
	
 
	
No Limit
	
 
	
NORWAY
	
 
	
No Limit

	
CHILE
	
 
	
7.5
	
 
	
OMAN
	
 
	
0

	
CHINA
	
 
	
7.5
	
 
	
PAKISTAN
	
 
	
0

	
COLOMBIA
	
 
	
11.25
	
 
	
PANAMA
	
 
	
7.5

	
COSTA RICA
	
 
	
7.5
	
 
	
PERU
	
 
	
11.25

	
CROATIA
	
 
	
0
	
 
	
PHILIPPINES
	
 
	
7.5

	
CYPRUS
	
 
	
0
	
 
	
POLAND
	
 
	
11.25

	
CZECH REPUBLIC
	
 
	
7.5
	
 
	
QATAR
	
 
	
22.50

	
DENMARK
	
 
	
No Limit
	
 
	
ROMANIA
	
 
	
0

	
DOMINICAN REPUBLIC
	
 
	
0
	
 
	
RUSSIA
	
 
	
0

	
ECUADOR
	
 
	
0
	
 
	
SERBIA
	
 
	
0

	
EGYPT
	
 
	
0
	
 
	
SINGAPORE
	
 
	
No Limit

	
EL SALVADOR
	
 
	
0.3
	
 
	
SLOVAKIA
	
 
	
0

	
ESTONIA
	
 
	
0
	
 
	
SLOVENIA
	
 
	
0

	
FINLAND
	
 
	
No Limit
	
 
	
SOUTH AFRICA
	
 
	
4.1

	
FRANCE
	
 
	
No Limit
	
 
	
SOUTH KOREA
	
 
	
15

	
GERMANY
	
 
	
No Limit
	
 
	
SPAIN
	
 
	
No Limit

	
GRENADA
	
 
	
0
	
 
	
SUPRANATIONAL
	
 
	
No Limit

	
GUATEMALA
	
 
	
0
	
 
	
SWEDEN
	
 
	
No Limit

	
HONDURAS
	
 
	
0
	
 
	
SWITZERLAND
	
 
	
No Limit

	
HONG KONG
	
 
	
No Limit
	
 
	
TAIWAN
	
 
	
No Limit

	
HUNGARY
	
 
	
0
	
 
	
THAILAND
	
 
	
0

	
ICELAND
	
 
	
0
	
 
	
TRINIDAD
	
 
	
0

	
INDIA
	
 
	
22.5
	
 
	
TUNISIA
	
 
	
7.5

	
IRELAND
	
 
	
No Limit
	
 
	
TURKEY
	
 
	
0

	
ISRAEL
	
 
	
9
	
 
	
UKRAINE
	
 
	
0

	
ITALY
	
 
	
No Limit
	
 
	
UNITED KINGDOM
	
 
	
No Limit

	
IVORY COAST
	
 
	
0
	
 
	
URUGUAY
	
 
	
7.5

	
JAMAICA
	
 
	
0
	
 
	
VENEZUELA
	
 
	
0

	
JAPAN
	
 
	
22.5
	
 
	
VIETNAM
	
 
	
0

	
JORDAN
	
 
	
0
	
 
	
 
	
 
	
 

 

 

As of March 31, 2016

45

 

EXHIBIT A

FORM OF BENEFICIARY WITHDRAWAL NOTICE

From: Primerica Life Insurance Company (the “Beneficiary”)

To: The Bank of New York Mellon [or its successor] (the “Trustee”)

Date:

Re: 80% Coinsurance Trust Agreement among Pecan Re Inc., the Beneficiary, and the Trustee, dated as of March 31, 2016 (the “Trust Agreement”) and [Prime-Funded] [Pecan-Funded] Reserves Trust Account #[345845] [345846]

Dear Sirs:

We hereby give you notice pursuant to Section 2(a) of the Trust Agreement that the Beneficiary is entitled to withdraw the sum of $                                   from the [Prime-Funded] [Pecan-Funded] Reserves Trust Account. Payment should be immediately made to                                       by the following method:                                                                                                

The Beneficiary hereby demands payment of the above-specified amount in accordance with Section 2(a) of the Trust Agreement.

 

	
Yours faithfully,
	
 

	
 
	
 

	
For and on behalf of Beneficiary
	
 

46

 

EXHIBIT B

FORM OF GRANTOR WITHDRAWAL NOTICE

From: Pecan Re Inc. (the “Grantor”)

To: The Bank of New York Mellon [or its successor] (the “Trustee”)

Date:

Re: 80% Coinsurance Trust Agreement among the Grantor, Primerica Life Insurance Company (the “Beneficiary”), and the Trustee, dated as of March 31, 2016 (“Trust Agreement”) and [Prime-Funded] [Pecan-Funded] Reserves Trust Account #[345845] [345846]

Dear Sirs:

We hereby give you notice pursuant to Section [2(e)][2(f)] of the Trust Agreement that the Grantor is entitled to withdraw the sum of $                                    from the [Prime-Funded] [Pecan-Funded] Reserves Trust Account. Payment should be immediately made to                                         by the following method:  :                                                                                                

The Grantor hereby demands payment of the above-specified amount in accordance with Section [2(e)][2(f)] of the Trust Agreement.

 

	
Yours faithfully,
	
 

	
 
	
 

	
For and on behalf of Grantor
	
 

	
 
	
 

	
Agreed to:
	
 

	
 
	
 

	
For and on behalf of Beneficiary
	
 

 

47

 

EXHIBIT C

FORM OF SUBSTITUTION NOTICE

From: Pecan Re Inc. (the “Grantor”)

To: The Bank of New York Mellon [or its successor] (the “Trustee”)

Date:

Re: 80% Coinsurance Trust Agreement among the Grantor, Primerica Life Insurance Company (the “Beneficiary”), and the Trustee, dated as of March 31, 2016 (“Trust Agreement”) and [Prime-Funded] [Pecan-Funded] Reserves Trust Account #[345845] [345846]

Dear Sirs:

We hereby give you notice pursuant to Section 3(e) of the Trust Agreement for the Trustee to transfer                                     from                                        to the [Prime-Funded] [Pecan-Funded] Reserves Trust Account.

We hereby give you notice pursuant to Section 3(e) of the Trust Agreement for the Trustee to transfer from the [Prime-Funded] [Pecan-Funded] Reserves Trust Account to .

The Grantor hereby certifies to the Trustee that such substitutions are Eligible Securities. The Grantor hereby certifies to the Trustee that the aggregate [Prime-Funded Reserves Fair Value] [Pecan-Funded Reserves Fair Value] of the assets to be deposited or credited to the [Prime- Funded] [Pecan-Funded] Reserves Trust Account pursuant to this substitution is at least equal to the aggregate [Prime-Funded Reserves Fair Value] [Pecan-Funded Reserves Fair Value] of the assets being removed from the [Prime-Funded] [Pecan-Funded] Reserves Trust Account.

 

	
Yours faithfully,
	
 

	
 
	
 

	
For and on behalf of Grantor
	
 

	
 
	
 

	
Agreed to:
	
 

	
 
	
 

	
For and on behalf of Beneficiary
	
 

 

48

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