PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT (Form: N-VPFS, Received: 04/18/2023 12:25:10)

Protective Variable Annuity Separate Account of Protective Life Insurance Company

Financial Statements December 31, 2022

Index

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT

	Page(s)

Report of Independent Registered Public Accounting Firm	1

Statement of Assets and Liabilities as of December 31, 2022	19

Statement of Operations for the year ended December 31, 2022	49

Statements of Changes in Net Assets for each of the years or periods in the two-year period ended December 31, 2022	79

Notes to Financial Statements	137

PROTECTIVE LIFE INSURANCE COMPANY

Independent Auditors’ Report	1

Statements of Admitted Assets, Liabilities, and Capital and Surplus as of December 31, 2022 and 2021	4

Statements of Operations for each of the years in the three-year period ended December 31, 2022	6

Statements of Changes in Capital and Surplus for each of the years in the three-year period ended December 31, 2022	7

Statements of Cash Flow for each of the years in the three-year period ended December 31, 2022	8

Notes to Financial Statements	10

Supplemental Schedules:

Schedule I Summary of Investments — Other Than Investments in Related Parties as of December 31, 2022	S-1

Schedule IV Reinsurance as of and for the years ended December 31, 2022, 2021 and 2020	S-2

All other schedules to the statutory financial statements required by Article 7 of Regulation S-X are not required under the related instructions or are inapplicable and therefore have been omitted.

Report of Independent Registered Public Accounting Firm

To the Contract Owners of Protective Variable Annuity Separate Account and the Board of Directors of
Protective Life Insurance Company:

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of the subaccounts listed in Appendix A that comprise Protective Variable Annuity Separate Account (the Separate Account) as of December 31, 2022, the related statements of operations for the year then ended, the statements of changes in net assets for each of the years or periods in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years or periods in the four-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Separate Account as of December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the years or periods in the two-year period then ended, and the financial highlights for each of the years or periods in the four-year period then ended, in conformity with U.S. generally accepted accounting principles. The financial highlights for the year ended December 31, 2018 were audited by other independent registered public accountants whose report, dated April 22, 2019, expressed an unqualified opinion on those financial highlights.

Basis for Opinion

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

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2022, by correspondence with the underlying mutual funds or their transfer agents; when replies were not received, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

/s/ KPMG LLP

We have served as the auditor of one or more Protective Life Insurance Company separate accounts since 2019.

Birmingham, Alabama
April 13, 2023

Appendix A

The subaccounts that comprise Protective Variable Annuity Separate Account were audited according to varying periods as defined in the table below:

Subaccount	Statements of Assets and Liabilities	Statements of Operations	Statements of Changes in Net Assets
AB VPS Growth and Income B	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
AB VPS Large Cap Growth B	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
AB VPS Small Cap Growth B	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
AB VPS Small/Mid Cap Value B	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Century VP Balanced I	As of December 31, 2022	For the period from September 12, 2022 (commencement of operations) to December 31, 2022	For the period from September 12, 2022 (commencement of operations) to December 31, 2022
American Funds IS Asset Allocation Class 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS Asset Allocation Class 4	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS Capital Income Builder Class 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS Capital Income Builder Class 4	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS Capital World Growth And Income Fund 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS Capital World Growth And Income Fund 4	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022

American Funds IS Global Bond 2	As of December 31, 2022	For the period from January 13, 2022 (commencement of operations) to December 31, 2022	For the period from January 13, 2022 (commencement of operations) to December 31, 2022
American Funds IS Global Growth Class 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS Global Growth Class 4	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS Global Small Capitalization Class 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS Global Small Capitalization Class 4	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS Growth – Income Class 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS Growth – Income Class 4	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS Growth Class 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS Growth Class 4	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS High-Income Bond 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS International Class 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS International Class 4	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS International Growth And Income 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022

American Funds IS New World Class 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS New World Class 4	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS The Bond Fund Of America 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS The Bond Fund Of America 4	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS U.S. Government Securities Fund 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS U.S. Government Securities Fund 4	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS Washington Mutual Investors Fund 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
American Funds IS Washington Mutual Investors Fund 4	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Blackrock 60/40 Target Allocation ETF V.I. Fund	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Blackrock Global Allocation V.I. III	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Blackrock International V.I. I	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Calvert VP SRI Balanced	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Clearbridge Variable Dividend Strategy II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022

Clearbridge Variable Large Cap Growth II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
ClearBridge Variable Mid Cap Portfolio Class II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
ClearBridge Variable Small Cap Growth II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Columbia VP Balanced 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Columbia VP Emerging Markets Bond 2	As of December 31, 2022	For the period from January 18, 2022 (commencement of operations) to December 31, 2022	For the period from January 18, 2022 (commencement of operations) to December 31, 2022
Columbia VP Intermediate Bond 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Columbia VP Limited Duration Credit 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Columbia VP Select Mid Cap Value 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Columbia VP Strategic Income 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
DFA VA Equity Allocation Portfolio Instl	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
DFA VA Global Bond	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
DFA VA Global Moderate Allocation Instl	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
DFA VA International Small	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022

DFA VA International Value	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
DFA VA Short-Term Fixed	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
DFA VA US Large Value	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
DFA VA US Targeted Value	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Fidelity Contrafund Portfolio SC2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Fidelity Equity Income SC2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Fidelity Freedom Fund - 2015 Maturity SC2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Fidelity Freedom Fund - 2020 Maturity SC2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Fidelity Growth Portfolio SC2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Fidelity Index 500 Portfolio SC2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Fidelity Investment Grade Bonds SC2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Fidelity Mid Cap SC2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Fidelity VIP Asset Manager Growth Service 2	As of December 31, 2022	For the period from March 18, 2022 (commencement of operations) to December 31, 2022	For the period from March 18, 2022 (commencement of operations) to December 31, 2022

Fidelity VIP Asset Manager Service 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Fidelity VIP Balanced Service 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Fidelity VIP Bond Index Port	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Fidelity VIP Energy Service 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Fidelity VIP Extended Market Index Portfolio	As of December 31, 2022	For the period from April 19, 2022 (commencement of operations) to December 31, 2022	For the period from April 19, 2022 (commencement of operations) to December 31, 2022
Fidelity VIP Fundsmanager 20% Service 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Fidelity VIP Fundsmanager 60% Service 2	Not applicable	For the period from March 14, 2022 (commencement of operations) to December 31, 2022	For the period from March 14, 2022 (commencement of operations) to December 31, 2022
Fidelity VIP Fundsmanager 85% Service 2	As of December 31, 2022	For the period from January 18, 2022 (commencement of operations) to December 31, 2022	For the period from January 18, 2022 (commencement of operations) to December 31, 2022
Fidelity VIP Health Care Port Service 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Fidelity VIP International Index Port	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Fidelity VIP Target Volatility Service 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Fidelity VIP Technology Initial	As of December 31, 2022	For the period from January 28, 2022 (commencement of operations) to December 31, 2022	For the period from January 28, 2022 (commencement of operations) to December 31, 2022
Fidelity VIP Total Market Index Port	As of December 31, 2022	For the period from January 21, 2022 (commencement of operations) to December 31, 2022	For the period from January 21, 2022 (commencement of operations) to December 31, 2022

Fidelity VIP Utilities Initial	As of December 31, 2022	For the period from March 10, 2022 (commencement of operations) to December 31, 2022	For the period from March 10, 2022 (commencement of operations) to December 31, 2022
Fidelity VIP Value Strategies Service 2	As of December 31, 2022	For the period from January 12, 2022 (commencement of operations) to December 31, 2022	For the period from January 12, 2022 (commencement of operations) to December 31, 2022
Franklin Dynatech VIP Fund	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Franklin Income VIP CL 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Franklin Multi-Asset Dynamic Multi-Strat VIT	Not applicable	For the period from January 1, 2022 to August 31, 2022 (cessation of operations)	For the period from January 1, 2021 to August 31, 2022 (cessation of operations)
Franklin Mutual Global Discovery VIP CL 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Franklin Mutual Shares VIP CL 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Franklin Rising Dividend VIP CL 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Franklin Small Cap Value VIP CL 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Franklin Small-Mid Cap Growth VIP CL 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Franklin Strategic Income VIP CL 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Franklin US Government Securities VIP CL 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022

Goldman Sachs Global Trends Allocation Fund SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Goldman Sachs International Equity Insights	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Goldman Sachs International Equity Insights SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Goldman Sachs Large Cap Value	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Goldman Sachs Large Cap Value Fund SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Goldman Sachs Mid Cap Value	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Goldman Sachs Mid Cap Value SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Goldman Sachs Small Cap Equity Insights	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Goldman Sachs Small Cap Equity Insights SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Goldman Sachs Strategic Growth	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Goldman Sachs Strategic Growth SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Goldman Sachs US Equity Insights	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Goldman Sachs US Equity Insights SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022

Goldman Sachs VIT Core Fixed Income Fund SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Goldman Sachs VIT Mid Cap Growth Fund SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Guggenheim Floating Rate Strategies (Series F)	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Guggenheim Global Managed Futures Strategy	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Guggenheim Long Short Equity	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Guggenheim Multi-Hedge Strategies	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. American Franchise I	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. American Franchise II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. American Value II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. Balanced Risk Allocation II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. Capital Appreciation Fund I	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. Capital Appreciation Fund II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. Comstock I	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022

Invesco V.I. Comstock II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. Conservative Balance II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. Discovery Mid Cap Growth Fund I	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. Discovery Mid Cap Growth Fund II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. Equity and Income II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. Global Fund I	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. Global Fund II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. Global Real Estate II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. Global Strategic Income Fund I	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. Global Strategic Income Fund II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. Government Securities II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. Growth & Income I	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. Growth & Income II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022

Invesco V.I. EQV International Equity Fund II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. Main Street Fund I	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. Main Street Fund II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. Main Street Small Cap Fund II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. Small Cap Equity II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Invesco V.I. U.S. Government Money Portfolio I	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Janus Henderson Balanced Service Class	As of December 31, 2022	For the period from August 22, 2022 (commencement of operations) to December 31, 2022	For the period from August 22, 2022 (commencement of operations) to December 31, 2022
Janus Henderson Forty - Service Class	As of December 31, 2022	For the period from August 22, 2022 (commencement of operations) to December 31, 2022	For the period from August 22, 2022 (commencement of operations) to December 31, 2022
Janus Henderson Global Technology - Service Class	As of December 31, 2022	For the period from August 22, 2022 (commencement of operations) to December 31, 2022	For the period from August 22, 2022 (commencement of operations) to December 31, 2022
Janus Henderson Overseas Portfolio - Service Class	As of December 31, 2022	For the period from August 22, 2022 (commencement of operations) to December 31, 2022	For the period from August 22, 2022 (commencement of operations) to December 31, 2022
Lord Abbett Bond Debenture VC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Lord Abbett Dividend Growth Fund	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022

Lord Abbett Growth & Income VC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Lord Abbett Growth Opportunities VC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Lord Abbett Mid Cap Stock VC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Lord Abbett Series Fundamental Equity VC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Lord Abbett Series Short Duration Income VC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
MFS Growth Series IC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
MFS Growth Series SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
MFS Investors Trust IC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
MFS Investors Trust SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
MFS New Discovery IC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
MFS New Discovery SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
MFS Research IC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
MFS Research SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022

MFS Total Return IC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
MFS Total Return SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
MFS Utilities IC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
MFS Utilities SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
MFS VIT II Emerging Markets Equity SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
MFS VIT II International Value SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
MFS VIT II MA Investors Growth Stock IC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
MFS VIT II MA Investors Growth Stock SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
MFS VIT Total Return Bond SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
MFS VIT Value SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Morgan Stanley VIF Core Plus Fixed Income Portfolio	As of December 31, 2022	For the period from December 2, 2022 (commencement of operations) to December 31, 2022	For the period from December 2, 2022 (commencement of operations) to December 31, 2022
Morgan Stanley VIF Global Real Estate II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Morgan Stanley VIF Global Strategy Portfolio	As of December 31, 2022	For the period from September 12, 2022 (commencement of operations) to December 31, 2022	For the period from September 12, 2022 (commencement of operations) to December 31, 2022

PIMCO Income Advisor	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
PIMCO VIT All Asset Advisor	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
PIMCO VIT Commodity Real Return Strategy Advantage	As of December 31, 2022	For the period from November 9, 2022 (commencement of operations) to December 31, 2022	For the period from November 9, 2022 (commencement of operations) to December 31, 2022
PIMCO VIT Global Diversified Allocation Portfolio	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
PIMCO VIT High Yield Advance	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
PIMCO VIT Long-Term US Government Advisor	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
PIMCO VIT Low Duration Advisor	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
PIMCO VIT Real Return Advisor	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
PIMCO VIT Short-Term Advisor	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
PIMCO VIT Total Return Advisor	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Protective Life Dynamic Allocation Series – Conservative	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Protective Life Dynamic Allocation Series – Growth	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022

Protective Life Dynamic Allocation Series – Moderate	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Royce Capital Fund Micro-Cap SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Royce Capital Fund Small-Cap SC	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Rydex Commodities Strategy	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Rydex Inverse Government Long Bond	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
T. Rowe Price All-Cap Opportunities Portfolio	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
T. Rowe Price Blue Chip Growth Portfolio II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
T. Rowe Price Health Sciences Portfolio II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
T. Rowe Price Moderate Allocation	As of December 31, 2022	For the period from January 21, 2022 (commencement of operations) to December 31, 2022	For the period from January 21, 2022 (commencement of operations) to December 31, 2022
Templeton Developing Markets VIP CL 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Templeton Foreign VIP CL 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Templeton Global Bond VIP Fund CL 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Templeton Growth VIP CL 2	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022

VanEck Global Hard Asset	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Vanguard VIF Balanced	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Vanguard VIF Capital Growth	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Vanguard VIF Conservative Allocation	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Vanguard VIF Diversified Val	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Vanguard VIF Equity Income	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Vanguard VIF Equity Index	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Vanguard VIF Global Bond Index	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Vanguard VIF Growth	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Vanguard VIF High Yield Bond	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Vanguard VIF International	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Vanguard VIF Mid-Cap Index	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Vanguard VIF Moderate Allocation	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022

Vanguard VIF Money Market	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Vanguard VIF Real Estate Index	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Vanguard VIF Short Term Investment Grade	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Vanguard VIF Total Bond Market Index	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Vanguard VIF Total International Stock Market Index	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Vanguard VIF Total Stock Mkt Index	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022
Western Asset Core Plus VIT II	As of December 31, 2022	For the year then ended December 31, 2022	For each of the years in the two-year period then ended December 31, 2022

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	AB VPS Growth And Income B		AB VPS Large Cap Growth B		AB VPS Small Cap Growth B		AB VPS Small/Mid Cap Value B		American Century VP Balanced I		American Funds IS Asset Allocation Class 2		American Funds IS Asset Allocation Class 4

ASSETS:
Investments at fair value ⁽¹⁾	$	745	$	7,458	$	299	$	512	$	71	$	81,197	$	30,864

Receivable from the contracts		-		14		3		-		-		-		-
Receivable from the fund manager		1		-		-		0		0		81		90
Receivable from the Company		-		-		-		-		-		-		-
Total receivables		1		14		3		0		0		81		90

Total assets		745		7,472		302		512		71		81,278		30,953

LIABILITIES:
Payable to the contracts		1		-		-		0		0		81		90
Payable to the fund manager		-		14		3		-		-		-		-
Payable to the Company		-		-		-		-		-		1		-
Total liabilities		1		14		3		0		0		82		90

NET ASSETS	$	745	$	7,458	$	299	$	512	$	71	$	81,196	$	30,864

Fair value per share (NAV)	$	28.36	$	53.45	$	6.77	$	16.39	$	6.70	$	21.91	$	21.74
Shares outstanding in the Separate Account		26		140		44		31		11		3,706		1,420

⁽¹⁾ Investments in mutual fund shares, at cost	$	819	$	8,696	$	405	$	551	$	74	$	72,169	$	33,962

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	American Funds IS Capital Income Builder Class 2		American Funds IS Capital Income Builder Class 4		American Funds IS Capital World Growth And Income Fund 2		American Funds IS Capital World Growth And Income Fund 4		American Funds IS Global Bond 2		American Funds IS Global Growth Class 2		American Funds IS Global Growth Class 4

ASSETS:
Investments at fair value ⁽¹⁾	$	7,250	$	6,478	$	6,143	$	2,977	$	463	$	90,605	$	14,451

Receivable from the contracts		11		-		-		-		-		-		-
Receivable from the fund manager		-		6		4		3		0		70		64
Receivable from the Company		-		-		-		-		-		-		-
Total receivables		11		6		4		3		0		70		64

Total assets		7,261		6,484		6,147		2,979		463		90,675		14,515

LIABILITIES:
Payable to the contracts		-		6		4		3		0		70		64
Payable to the fund manager		11		-		-		-		-		-		-
Payable to the Company		-		-		-		-		-		-		-
Total liabilities		11		6		4		3		0		70		64

NET ASSETS	$	7,250	$	6,478	$	6,143	$	2,977	$	463	$	90,605	$	14,451

Fair value per share (NAV)	$	10.98	$	10.96	$	11.64	$	11.35	$	9.45	$	29.79	$	29.51
Shares outstanding in the Separate Account		660		591		528		262		49		3,041		490

⁽¹⁾ Investments in mutual fund shares, at cost	$	7,148	$	6,003	$	7,965	$	3,787	$	508	$	92,865	$	14,370

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	American Funds IS Global Small Capitalization Class 2		American Funds IS Global Small Capitalization Class 4		American Funds IS Growth – Income Class 2		American Funds IS Growth – Income Class 4		American Funds IS Growth Class 2		American Funds IS Growth Class 4		American Funds IS High-Income Bond 2

ASSETS:
Investments at fair value ⁽¹⁾	$	6,483	$	392	$	16,383	$	14,625	$	51,021	$	37,934	$	535

Receivable from the contracts		-		-		3		-		6		-		-
Receivable from the fund manager		4		0		-		62		-		57		0
Receivable from the Company		-		-		-		-		0		-		-
Total receivables		4		0		3		62		6		57		0

Total assets		6,487		393		16,386		14,687		51,027		37,990		535

LIABILITIES:
Payable to the contracts		4		0		-		62		-		57		0
Payable to the fund manager		-		-		3		-		6		-		-
Payable to the Company		-		-		-		-		-		-		-
Total liabilities		4		0		3		62		6		57		0

NET ASSETS	$	6,483	$	392	$	16,383	$	14,625	$	51,021	$	37,934	$	535

Fair value per share (NAV)	$	15.30	$	15.28	$	49.46	$	48.72	$	75.40	$	73.64	$	8.34
Shares outstanding in the Separate Account		424		26		331		300		677		515		64

⁽¹⁾ Investments in mutual fund shares, at cost	$	9,855	$	464	$	18,741	$	14,437	$	64,707	$	44,617	$	591

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	American Funds IS International Class 2		American Funds IS International Class 4		American Funds IS International Growth And Income 2		American Funds IS New World Class 2		American Funds IS New World Class 4		American Funds IS The Bond Fund Of America 2		American Funds IS The Bond Fund Of America 4

ASSETS:
Investments at fair value ⁽¹⁾	$	9,242	$	535	$	913	$	8,784	$	337	$	32,758	$	8,478

Receivable from the contracts		2		-		-		5		-		20		-
Receivable from the fund manager		-		1		1		-		0		-		56
Receivable from the Company		-		-		-		-		-		0		-
Total receivables		2		1		1		5		0		20		56

Total assets		9,244		535		913		8,789		338		32,778		8,534

LIABILITIES:
Payable to the contracts		-		1		1		-		0		-		56
Payable to the fund manager		2		-		-		5		-		20		-
Payable to the Company		-		-		-		-		-		-		-
Total liabilities		2		1		1		5		0		20		56

NET ASSETS	$	9,242	$	535	$	913	$	8,784	$	337	$	32,758	$	8,478

Fair value per share (NAV)	$	15.23	$	14.99	$	8.70	$	22.02	$	21.84	$	9.27	$	9.23
Shares outstanding in the Separate Account		607		36		105		399		15		3,534		919

⁽¹⁾ Investments in mutual fund shares, at cost	$	12,242	$	649	$	1,091	$	10,489	$	363	$	37,153	$	10,070

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	American Funds IS U.S. Government Securities Fund 2		American Funds IS U.S. Government Securities Fund 4		American Funds IS Washington Mutual Investors Fund 2		American Funds IS Washington Mutual Investors Fund 4		Blackrock 60/40 Target Allocation ETF V.I. Fund		Blackrock Global Allocation V.I. III		Blackrock International V.I. I

ASSETS:
Investments at fair value ⁽¹⁾	$	3,304	$	4,042	$	38,161	$	3,041	$	2,986	$	12,534	$	405

Receivable from the contracts		-		-		-		-		-		6		-
Receivable from the fund manager		1		4		5		3		2		-		0
Receivable from the Company		-		-		-		-		0		-		-
Total receivables		1		4		5		3		2		6		0

Total assets		3,305		4,046		38,166		3,045		2,989		12,540		405

LIABILITIES:
Payable to the contracts		1		4		5		3		2		-		0
Payable to the fund manager		-		-		-		-		-		6		-
Payable to the Company		-		-		-		-		-		-		-
Total liabilities		1		4		5		3		2		6		0

NET ASSETS	$	3,304	$	4,042	$	38,161	$	3,041	$	2,986	$	12,534	$	405

Fair value per share (NAV)	$	9.87	$	9.86	$	12.46	$	12.34	$	11.61	$	11.87	$	8.55
Shares outstanding in the Separate Account		335		410		3,063		246		257		1,056		47

⁽¹⁾ Investments in mutual fund shares, at cost	$	4,103	$	5,050	$	42,686	$	3,206	$	3,217	$	13,292	$	439

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Calvert VP SRI Balanced		Clearbridge Variable Dividend Strategy II		Clearbridge Variable Large Cap Growth II		ClearBridge Variable Mid Cap Portfolio Class II		ClearBridge Variable Small Cap Growth II		Columbia VP Balanced 2		Columbia VP Emerging Markets Bond 2

ASSETS:
Investments at fair value ⁽¹⁾	$	1,079	$	203	$	147	$	24,485	$	12,106	$	1,668	$	106

Receivable from the contracts		-		-		-		-		1		-		-
Receivable from the fund manager		1		0		0		10		-		2		0
Receivable from the Company		-		-		-		-		-		-		-
Total receivables		1		0		0		10		1		2		0

Total assets		1,080		203		147		24,494		12,108		1,670		106

LIABILITIES:
Payable to the contracts		1		0		0		10		-		2		0
Payable to the fund manager		-		-		-		-		1		-		-
Payable to the Company		-		-		-		0		-		-		-
Total liabilities		1		0		0		10		1		2		0

NET ASSETS	$	1,079	$	203	$	147	$	24,485	$	12,106	$	1,668	$	106

Fair value per share (NAV)	$	2.07	$	21.28	$	26.72	$	20.17	$	23.39	$	34.41	$	7.52
Shares outstanding in the Separate Account		521		10		5		1,214		518		48		14

⁽¹⁾ Investments in mutual fund shares, at cost	$	1,093	$	225	$	195	$	19,042	$	12,059	$	1,889	$	109

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Columbia VP Intermediate Bond 2		Columbia VP Limited Duration Credit 2		Columbia VP Select Mid Cap Value 2		Columbia VP Strategic Income 2		DFA VA Equity Allocation Portfolio Instl		DFA VA Global Bond		DFA VA Global Moderate Allocation Instl

ASSETS:
Investments at fair value ⁽¹⁾	$	890	$	259	$	596	$	5,875	$	108	$	817	$	501

Receivable from the contracts		-		-		-		52		-		-		-
Receivable from the fund manager		0		0		2		-		0		0		0
Receivable from the Company		-		-		-		-		-		-		-
Total receivables		0		0		2		52		0		0		0

Total assets		891		259		598		5,927		108		817		501

LIABILITIES:
Payable to the contracts		0		0		2		-		0		0		0
Payable to the fund manager		-		-		-		52		-		-		-
Payable to the Company		-		-		-		-		-		-		-
Total liabilities		0		0		2		52		0		0		0

NET ASSETS	$	890	$	259	$	596	$	5,875	$	108	$	817	$	501

Fair value per share (NAV)	$	8.23	$	9.12	$	32.44	$	3.46	$	12.32	$	9.62	$	13.64
Shares outstanding in the Separate Account		108		28		18		1,698		9		85		37

⁽¹⁾ Investments in mutual fund shares, at cost	$	1,024	$	263	$	603	$	6,223	$	118	$	888	$	569

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	DFA VA International Small		DFA VA International Value		DFA VA Short-Term Fixed		DFA VA US Large Value		DFA VA US Targeted Value		Fidelity Contrafund Portfolio SC2		Fidelity Equity Income SC2

ASSETS:
Investments at fair value ⁽¹⁾	$	672	$	1,016	$	900	$	2,370	$	1,276	$	143,937	$	5,154

Receivable from the contracts		-		-		-		-		-		-		-
Receivable from the fund manager		0		0		0		1		0		133		5
Receivable from the Company		-		-		-		-		-		-		-
Total receivables		0		0		0		1		0		133		5

Total assets		672		1,016		900		2,371		1,276		144,070		5,158

LIABILITIES:
Payable to the contracts		0		0		0		1		0		133		5
Payable to the fund manager		-		-		-		-		-		-		-
Payable to the Company		-		-		-		-		-		1		-
Total liabilities		0		0		0		1		0		134		5

NET ASSETS	$	672	$	1,016	$	900	$	2,370	$	1,276	$	143,936	$	5,154

Fair value per share (NAV)	$	10.75	$	12.24	$	9.93	$	30.43	$	20.54	$	36.54	$	22.71
Shares outstanding in the Separate Account		63		83		91		78		62		3,939		227

⁽¹⁾ Investments in mutual fund shares, at cost	$	798	$	1,071	$	916	$	2,440	$	1,418	$	115,479	$	4,440

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Fidelity Freedom Fund - 2015 Maturity SC2		Fidelity Freedom Fund - 2020 Maturity SC2		Fidelity Growth Portfolio SC2		Fidelity Index 500 Portfolio SC2		Fidelity Investment Grade Bonds SC2		Fidelity Mid Cap SC2		Fidelity VIP Asset Manager Growth Service 2

ASSETS:
Investments at fair value ⁽¹⁾	$	940	$	2,240	$	2,364	$	248,696	$	246,236	$	137,924	$	76

Receivable from the contracts		-		-		-		-		-		-		-
Receivable from the fund manager		1		2		2		221		156		3,344		0
Receivable from the Company		-		-		-		-		-		-		-
Total receivables		1		2		2		221		156		3,344		0

Total assets		941		2,241		2,366		248,916		246,393		141,268		76

LIABILITIES:
Payable to the contracts		1		2		2		221		156		3,344		0
Payable to the fund manager		-		-		-		-		-		-		-
Payable to the Company		-		-		-		-		0		1		-
Total liabilities		1		2		2		221		157		3,345		0

NET ASSETS	$	940	$	2,240	$	2,364	$	248,696	$	246,236	$	137,923	$	76

Fair value per share (NAV)	$	10.88	$	11.46	$	69.27	$	369.70	$	10.47	$	31.20	$	18.39
Shares outstanding in the Separate Account		86		195		34		673		23,518		4,421		4

⁽¹⁾ Investments in mutual fund shares, at cost	$	1,015	$	2,435	$	1,765	$	158,745	$	296,592	$	138,088	$	79

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Fidelity VIP Asset Manager Service 2		Fidelity VIP Balanced Service 2		Fidelity VIP Bond Index Port		Fidelity VIP Energy Service 2		Fidelity VIP Extended Market Index Portfolio		Fidelity VIP Funds manager 20% Service 2		Fidelity VIP Funds manager 85% Service 2

ASSETS:
Investments at fair value ⁽¹⁾	$	115	$	17,083	$	483	$	1,502	$	53	$	1,014	$	547

Receivable from the contracts		-		14		-		-		-		-		-
Receivable from the fund manager		0		-		0		1		0		1		0
Receivable from the Company		-		0		-		-		-		-		-
Total receivables		0		14		0		1		0		1		0

Total assets		115		17,097		483		1,503		53		1,016		548

LIABILITIES:
Payable to the contracts		0		-		0		1		0		1		0
Payable to the fund manager		-		14		-		-		-		-		-
Payable to the Company		-		-		-		-		-		-		-
Total liabilities		0		14		0		1		0		1		0

NET ASSETS	$	115	$	17,083	$	483	$	1,502	$	53	$	1,014	$	547

Fair value per share (NAV)	$	13.88	$	18.74	$	9.37	$	25.03	$	11.20	$	10.01	$	10.40
Shares outstanding in the Separate Account		8		912		52		60		5		101		53

⁽¹⁾ Investments in mutual fund shares, at cost	$	127	$	18,673	$	510	$	1,186	$	57	$	1,153	$	530

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Fidelity VIP Health Care Port Service 2		Fidelity VIP International Index Port		Fidelity VIP Target Volatility Service 2		Fidelity VIP Technology Initial		Fidelity VIP Total Market Index Port		Fidelity VIP Utilities Initial		Fidelity VIP Value Strategies Service 2

ASSETS:
Investments at fair value ⁽¹⁾	$	960	$	216	$	89	$	167	$	1,423	$	67	$	569

Receivable from the contracts		-		-		-		-		-		-		-
Receivable from the fund manager		1		0		0		0		1		0		0
Receivable from the Company		-		-		-		-		-		-		-
Total receivables		1		0		0		0		1		0		0

Total assets		960		216		89		167		1,424		68		570

LIABILITIES:
Payable to the contracts		1		0		0		0		1		0		0
Payable to the fund manager		-		-		-		-		-		-		-
Payable to the Company		-		-		-		-		-		-		-
Total liabilities		1		0		0		0		1		0		0

NET ASSETS	$	960	$	216	$	89	$	167	$	1,423	$	67	$	569

Fair value per share (NAV)	$	32.65	$	9.36	$	10.35	$	20.94	$	13.79	$	21.52	$	14.54
Shares outstanding in the Separate Account		29		23		9		8		103		3		39

⁽¹⁾ Investments in mutual fund shares, at cost	$	981	$	236	$	108	$	197	$	1,562	$	69	$	602

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Franklin Dynatech VIP Fund		Franklin Income VIP CL 2		Franklin Mutual Global Discovery VIP CL 2		Franklin Mutual Shares VIP CL 2		Franklin Rising Dividend VIP CL 2		Franklin Small Cap Value VIP CL 2		Franklin Small-Mid Cap Growth VIP CL 2

ASSETS:
Investments at fair value ⁽¹⁾	$	22,952	$	103,414	$	3,281	$	354,554	$	282,598	$	31,949	$	21,330

Receivable from the contracts		-		-		-		-		-		-		-
Receivable from the fund manager		22		136		2		4,487		302		430		18
Receivable from the Company		-		-		-		-		-		-		-
Total receivables		22		136		2		4,487		302		430		18

Total assets		22,973		103,550		3,284		359,041		282,900		32,379		21,348

LIABILITIES:
Payable to the contracts		22		136		2		4,487		302		430		18
Payable to the fund manager		-		-		-		-		-		-		-
Payable to the Company		-		1		-		2		0		-		-
Total liabilities		22		137		2		4,489		302		430		18

NET ASSETS	$	22,952	$	103,413	$	3,281	$	354,552	$	282,597	$	31,949	$	21,330

Fair value per share (NAV)	$	2.97	$	14.73	$	16.61	$	15.16	$	27.03	$	12.53	$	10.51
Shares outstanding in the Separate Account		7,728		7,021		198		23,387		10,455		2,550		2,030

⁽¹⁾ Investments in mutual fund shares, at cost	$	45,012	$	106,669	$	3,556	$	378,187	$	239,554	$	37,742	$	33,605

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Franklin Strategic Income VIP CL 2		Franklin US Government Securities VIP CL 2		Goldman Sachs Global Trends Allocation Fund SC		Goldman Sachs International Equity Insights		Goldman Sachs International Equity Insights SC		Goldman Sachs Large Cap Value		Goldman Sachs Large Cap Value Fund SC

ASSETS:
Investments at fair value ⁽¹⁾	$	5,907	$	332,954	$	6,039	$	17,275	$	28,015	$	31,621	$	80,365

Receivable from the contracts		-		-		-		-		-		-		-
Receivable from the fund manager		5		298		7		15		28		33		151
Receivable from the Company		-		-		-		-		-		-		-
Total receivables		5		298		7		15		28		33		151

Total assets		5,912		333,252		6,047		17,290		28,043		31,654		80,515

LIABILITIES:
Payable to the contracts		5		298		7		15		28		33		151
Payable to the fund manager		-		-		-		-		-		-		-
Payable to the Company		-		1		-		0		0		3		0
Total liabilities		5		299		7		15		29		36		151

NET ASSETS	$	5,907	$	332,953	$	6,039	$	17,275	$	28,015	$	31,618	$	80,364

Fair value per share (NAV)	$	8.73	$	10.19	$	9.99	$	7.66	$	7.70	$	8.34	$	8.35
Shares outstanding in the Separate Account		677		32,675		605		2,255		3,638		3,791		9,625

⁽¹⁾ Investments in mutual fund shares, at cost	$	7,018	$	426,891	$	6,934	$	28,041	$	28,790	$	36,555	$	90,239

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Goldman Sachs Mid Cap Value		Goldman Sachs Mid Cap Value SC		Goldman Sachs Small Cap Equity Insights		Goldman Sachs Small Cap Equity Insights SC		Goldman Sachs Strategic Growth		Goldman Sachs Strategic Growth SC		Goldman Sachs US Equity Insights

ASSETS:
Investments at fair value ⁽¹⁾	$	5,593	$	68,255	$	16,935	$	9,515	$	24,293	$	75,642	$	22,309

Receivable from the contracts		-		-		-		-		-		-		-
Receivable from the fund manager		5		1,396		18		7		22		47		25
Receivable from the Company		-		-		-		-		-		-		-
Total receivables		5		1,396		18		7		22		47		25

Total assets		5,598		69,651		16,953		9,523		24,314		75,689		22,334

LIABILITIES:
Payable to the contracts		5		1,396		18		7		22		47		25
Payable to the fund manager		-		-		-		-		-		-		-
Payable to the Company		1		0		1		-		4		-		2
Total liabilities		5		1,396		18		7		25		47		27

NET ASSETS	$	5,593	$	68,255	$	16,934	$	9,515	$	24,289	$	75,642	$	22,307

Fair value per share (NAV)	$	14.89	$	15.07	$	10.40	$	10.27	$	9.20	$	9.12	$	15.88
Shares outstanding in the Separate Account		376		4,529		1,628		927		2,641		8,294		1,405

⁽¹⁾ Investments in mutual fund shares, at cost	$	5,713	$	69,235	$	20,529	$	8,063	$	26,061	$	96,812	$	13,921

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Goldman Sachs US Equity Insights SC		Goldman Sachs VIT Core Fixed Income Fund SC		Goldman Sachs VIT Mid Cap Growth Fund SC		Guggenheim Floating Rate Strategies (Series F)		Guggenheim Global Managed Futures Strategy		Guggenheim Long Short Equity		Guggenheim Multi-Hedge Strategies

ASSETS:
Investments at fair value ⁽¹⁾	$	647	$	26,759	$	37,928	$	3,414	$	566	$	130	$	619

Receivable from the contracts		-		-		-		-		-		-		-
Receivable from the fund manager		1		25		70		22		0		0		1
Receivable from the Company		-		-		-		-		-		-		-
Total receivables		1		25		70		22		0		0		1

Total assets		647		26,783		37,998		3,436		566		130		619

LIABILITIES:
Payable to the contracts		1		25		70		22		0		0		1
Payable to the fund manager		-		-		-		-		-		-		-
Payable to the Company		-		-		0		-		-		-		-
Total liabilities		1		25		70		22		0		0		1

NET ASSETS	$	647	$	26,759	$	37,928	$	3,414	$	566	$	130	$	619

Fair value per share (NAV)	$	16.02	$	9.40	$	8.68	$	23.62	$	17.57	$	15.09	$	25.53
Shares outstanding in the Separate Account		40		2,847		4,370		145		32		9		24

⁽¹⁾ Investments in mutual fund shares, at cost	$	492	$	30,622	$	71,984	$	3,711	$	620	$	128	$	574

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Invesco V.I. American Franchise I		Invesco V.I. American Franchise II		Invesco V.I. American Value II		Invesco V.I. Balanced Risk Allocation II		Invesco V.I. Capital Appreciation Fund I		Invesco V.I. Capital Appreciation Fund II		Invesco V.I. Comstock I

ASSETS:
Investments at fair value ⁽¹⁾	$	4,652	$	2,275	$	75,694	$	55,653	$	6,361	$	23,130	$	22,482

Receivable from the contracts		-		-		-		-		-		8		-
Receivable from the fund manager		4		2		68		128		6		-		23
Receivable from the Company		-		-		-		-		-		-		-
Total receivables		4		2		68		128		6		8		23

Total assets		4,656		2,277		75,762		55,781		6,368		23,139		22,505

LIABILITIES:
Payable to the contracts		4		2		68		128		6		-		23
Payable to the fund manager		-		-		-		-		-		8		-
Payable to the Company		-		-		-		-		0		0		0
Total liabilities		4		2		68		128		6		8		23

NET ASSETS	$	4,652	$	2,275	$	75,694	$	55,653	$	6,361	$	23,130	$	22,482

Fair value per share (NAV)	$	42.84	$	38.85	$	15.48	$	7.97	$	34.77	$	33.06	$	20.34
Shares outstanding in the Separate Account		109		59		4,890		6,983		183		700		1,105

⁽¹⁾ Investments in mutual fund shares, at cost	$	5,252	$	1,967	$	75,829	$	81,346	$	7,076	$	27,364	$	12,414

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Invesco V.I. Comstock II		Invesco V.I. Conservative Balance II		Invesco V.I. Discovery Mid Cap Growth Fund I		Invesco V.I. Discovery Mid Cap Growth Fund II		Invesco V.I. Equity and Income II		Invesco V.I. Global Fund I		Invesco V.I. Global Fund II

ASSETS:
Investments at fair value ⁽¹⁾	$	142,637	$	11,948	$	3,094	$	22,745	$	130,545	$	6,371	$	161,989

Receivable from the contracts		-		31		-		-		-		-		-
Receivable from the fund manager		146		-		3		20		2,117		7		160
Receivable from the Company		-		0		-		-		-		-		-
Total receivables		146		31		3		20		2,117		7		160

Total assets		142,782		11,979		3,097		22,766		132,661		6,378		162,150

LIABILITIES:
Payable to the contracts		146		-		3		20		2,117		7		160
Payable to the fund manager		-		31		-		-		-		-		-
Payable to the Company		1		-		-		2		8		5		1
Total liabilities		147		31		3		22		2,125		13		162

NET ASSETS	$	142,635	$	11,948	$	3,094	$	22,744	$	130,536	$	6,366	$	161,988

Fair value per share (NAV)	$	20.25	$	13.69	$	55.51	$	47.86	$	16.03	$	31.10	$	30.30
Shares outstanding in the Separate Account		7,044		873		56		475		8,144		205		5,346

⁽¹⁾ Investments in mutual fund shares, at cost	$	95,833	$	13,398	$	3,188	$	29,928	$	116,973	$	5,719	$	160,289

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Invesco V.I. Global Real Estate II		Invesco V.I. Global Strategic Income Fund I		Invesco V.I. Global Strategic Income Fund II		Invesco V.I. Government Securities II		Invesco V.I. Growth & Income I		Invesco V.I. Growth & Income II		Invesco V.I. EQV International Equity Fund II

ASSETS:
Investments at fair value ⁽¹⁾	$	2,650	$	4,963	$	223,228	$	122,687	$	24,606	$	330,795	$	27,253

Receivable from the contracts		-		-		-		-		-		-		-
Receivable from the fund manager		2		6		210		100		26		5,841		20
Receivable from the Company		-		-		-		-		-		-		-
Total receivables		2		6		210		100		26		5,841		20

Total assets		2,652		4,969		223,437		122,787		24,631		336,635		27,274

LIABILITIES:
Payable to the contracts		2		6		210		100		26		5,841		20
Payable to the fund manager		-		-		-		-		-		-		-
Payable to the Company		-		0		0		0		1		7		0
Total liabilities		2		6		210		101		26		5,848		21

NET ASSETS	$	2,650	$	4,963	$	223,228	$	122,686	$	24,605	$	330,787	$	27,253

Fair value per share (NAV)	$	12.72	$	3.94	$	4.07	$	9.98	$	19.78	$	19.77	$	28.42
Shares outstanding in the Separate Account		208		1,260		54,847		12,293		1,244		16,732		959

⁽¹⁾ Investments in mutual fund shares, at cost	$	3,126	$	6,214	$	302,333	$	142,817	$	20,994	$	313,826	$	28,540

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Invesco V.I. Main Street Fund I		Invesco V.I. Main Street Fund II		Invesco V.I. Main Street Small Cap Fund II		Invesco V.I. Small Cap Equity II		Invesco V.I. U.S. Government Money Portfolio I		Janus Henderson Balanced Service Class		Janus Henderson Forty - Service Class

ASSETS:
Investments at fair value ⁽¹⁾	$	6,390	$	82,440	$	667	$	11,147	$	1,752,410	$	765	$	63

Receivable from the contracts		-		-		-		-		17,338		-		-
Receivable from the fund manager		7		76		0		144		-		1		0
Receivable from the Company		-		-		-		-		-		-		-
Total receivables		7		76		0		144		17,338		1		0

Total assets		6,397		82,516		667		11,291		1,769,747		765		63

LIABILITIES:
Payable to the contracts		7		76		0		144		-		1		0
Payable to the fund manager		-		-		-		-		17,338		-		-
Payable to the Company		0		-		-		-		1		-		-
Total liabilities		7		76		0		144		17,338		1		0

NET ASSETS	$	6,390	$	82,440	$	667	$	11,147	$	1,752,409	$	765	$	63

Fair value per share (NAV)	$	16.12	$	15.74	$	22.56	$	13.63	$	1.00	$	42.47	$	30.46
Shares outstanding in the Separate Account		396		5,238		30		818		1,752,410		18		2

⁽¹⁾ Investments in mutual fund shares, at cost	$	7,543	$	118,886	$	772	$	14,103	$	1,752,410	$	770	$	64

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Janus Henderson Global Technology - Service Class		Janus Henderson Overseas Portfolio - Service Class		Lord Abbett Bond Debenture VC		Lord Abbett Dividend Growth Fund		Lord Abbett Growth & Income VC		Lord Abbett Growth Opportunities VC		Lord Abbett Mid Cap Stock VC

ASSETS:
Investments at fair value ⁽¹⁾	$	35	$	36	$	478,599	$	92,724	$	56,399	$	24,782	$	41,274

Receivable from the contracts		-		-		-		-		-		-		-
Receivable from the fund manager		0		0		419		600		103		9		165
Receivable from the Company		-		-		17		-		12		-		1
Total receivables		0		0		436		600		115		9		165

Total assets		35		36		479,035		93,324		56,514		24,791		41,440

LIABILITIES:
Payable to the contracts		0		0		419		600		103		9		165
Payable to the fund manager		-		-		-		-		-		-		-
Payable to the Company		-		-		-		0		-		0		-
Total liabilities		0		0		419		601		103		9		165

NET ASSETS	$	35	$	36	$	478,616	$	92,723	$	56,411	$	24,782	$	41,275

Fair value per share (NAV)	$	10.41	$	36.76	$	10.20	$	14.86	$	32.80	$	8.06	$	23.08
Shares outstanding in the Separate Account		3		1		46,921		6,240		1,719		3,075		1,788

⁽¹⁾ Investments in mutual fund shares, at cost	$	36	$	34	$	566,769	$	93,610	$	39,905	$	38,714	$	33,790

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Lord Abbett Series Fundamental Equity VC		Lord Abbett Series Short Duration Income VC		MFS Growth Series IC		MFS Growth Series SC		MFS Investors Trust IC		MFS Investors Trust SC		MFS New Discovery IC

ASSETS:
Investments at fair value ⁽¹⁾	$	83,754	$	2,179	$	4,823	$	37,099	$	5,141	$	41,340	$	1,858

Receivable from the contracts		-		-		-		-		-		-		-
Receivable from the fund manager		2,113		0		5		63		6		39		2
Receivable from the Company		-		-		-		-		-		-		-
Total receivables		2,113		0		5		63		6		39		2

Total assets		85,867		2,179		4,828		37,162		5,147		41,379		1,861

LIABILITIES:
Payable to the contracts		2,113		0		5		63		6		39		2
Payable to the fund manager		-		-		-		-		-		-		-
Payable to the Company		0		-		0		0		0		-		0
Total liabilities		2,113		0		5		63		6		39		2

NET ASSETS	$	83,754	$	2,179	$	4,823	$	37,099	$	5,141	$	41,340	$	1,858

Fair value per share (NAV)	$	15.16	$	12.99	$	48.02	$	44.74	$	32.27	$	31.67	$	11.31
Shares outstanding in the Separate Account		5,525		168		100		829		159		1,305		164

⁽¹⁾ Investments in mutual fund shares, at cost	$	92,821	$	2,296	$	2,794	$	24,998	$	3,112	$	27,173	$	2,408

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	MFS New Discovery SC		MFS Research IC		MFS Research SC		MFS Total Return IC		MFS Total Return SC		MFS Utilities IC		MFS Utilities SC

ASSETS:
Investments at fair value ⁽¹⁾	$	45,050	$	4,368	$	3,011	$	15,233	$	41,301	$	1,761	$	19,638

Receivable from the contracts		-		-		-		-		-		-		-
Receivable from the fund manager		70		5		3		16		36		3		18
Receivable from the Company		-		-		0		-		-		-		-
Total receivables		70		5		3		16		36		3		18

Total assets		45,120		4,373		3,014		15,249		41,336		1,764		19,657

LIABILITIES:
Payable to the contracts		70		5		3		16		36		3		18
Payable to the fund manager		-		-		-		-		-		-		-
Payable to the Company		0		0		-		4		0		-		0
Total liabilities		71		5		3		20		36		3		18

NET ASSETS	$	45,049	$	4,368	$	3,011	$	15,229	$	41,300	$	1,761	$	19,638

Fair value per share (NAV)	$	8.84	$	27.74	$	27.20	$	22.49	$	21.95	$	36.32	$	35.57
Shares outstanding in the Separate Account		5,096		157		111		677		1,882		48		552

⁽¹⁾ Investments in mutual fund shares, at cost	$	68,453	$	3,035	$	2,134	$	12,392	$	35,307	$	1,113	$	12,901

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	MFS VIT II Emerging Markets Equity SC		MFS VIT II International Value SC		MFS VIT II MA Investors Growth Stock IC		MFS VIT II MA Investors Growth Stock SC		MFS VIT Total Return Bond SC		MFS VIT Value SC		Morgan Stanley VIF Core Plus Fixed Income Portfolio

ASSETS:
Investments at fair value ⁽¹⁾	$	238	$	16,508	$	1,528	$	29,346	$	303,873	$	150,061	$	39

Receivable from the contracts		-		-		-		-		-		-		-
Receivable from the fund manager		0		13		1		21		284		158		0
Receivable from the Company		-		-		-		-		-		-		-
Total receivables		0		13		1		21		284		158		0

Total assets		238		16,521		1,530		29,367		304,157		150,220		39

LIABILITIES:
Payable to the contracts		0		13		1		21		284		158		0
Payable to the fund manager		-		-		-		-		-		-		-
Payable to the Company		-		-		-		0		0		0		-
Total liabilities		0		13		1		22		284		159		0

NET ASSETS	$	238	$	16,508	$	1,528	$	29,346	$	303,873	$	150,061	$	39

Fair value per share (NAV)	$	11.19	$	26.75	$	19.29	$	18.86	$	11.04	$	21.03	$	8.59
Shares outstanding in the Separate Account		21		617		79		1,556		27,525		7,136		5

⁽¹⁾ Investments in mutual fund shares, at cost	$	296	$	9,932	$	1,474	$	28,064	$	353,235	$	89,427	$	40

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Morgan Stanley VIF Global Real Estate II		Morgan Stanley VIF Global Strategy Portfolio		PIMCO Income Advisor		PIMCO VIT All Asset Advisor		PIMCO VIT Commodity Real Return Strategy Advantage		PIMCO VIT Global Diversified Allocation Portfolio		PIMCO VIT High Yield Advance

ASSETS:
Investments at fair value ⁽¹⁾	$	5,023	$	17	$	613	$	2,183	$	6	$	4,891	$	186

Receivable from the contracts		-		-		-		-		-		-		-
Receivable from the fund manager		5		0		1		2		0		6		0
Receivable from the Company		-		-		-		-		-		-		-
Total receivables		5		0		1		2		0		6		0

Total assets		5,028		17		614		2,185		6		4,897		186

LIABILITIES:
Payable to the contracts		5		0		1		2		0		6		0
Payable to the fund manager		-		-		-		-		-		-		-
Payable to the Company		0		-		-		-		-		-		-
Total liabilities		5		0		1		2		0		6		0

NET ASSETS	$	5,023	$	17	$	613	$	2,183	$	6	$	4,891	$	186

Fair value per share (NAV)	$	6.96	$	7.57	$	9.69	$	8.76	$	7.01	$	5.59	$	6.77
Shares outstanding in the Separate Account		722		2		63		249		1		875		27

⁽¹⁾ Investments in mutual fund shares, at cost	$	5,541	$	17	$	664	$	2,640	$	6	$	7,775	$	200

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	PIMCO VIT Long-Term US Government Advisor		PIMCO VIT Low Duration Advisor		PIMCO VIT Real Return Advisor		PIMCO VIT Short-Term Advisor		PIMCO VIT Total Return Advisor		Protective Life Dynamic Allocation Series – Conservative		Protective Life Dynamic Allocation Series – Growth

ASSETS:
Investments at fair value ⁽¹⁾	$	20,470	$	126,469	$	235,468	$	69,195	$	606,616	$	39,579	$	48,110

Receivable from the contracts		-		-		-		-		-		-		-
Receivable from the fund manager		6		144		209		13		537		37		46
Receivable from the Company		-		-		-		0		-		-		-
Total receivables		6		144		209		13		537		37		46

Total assets		20,476		126,613		235,677		69,208		607,153		39,616		48,156

LIABILITIES:
Payable to the contracts		6		144		209		13		537		37		46
Payable to the fund manager		-		-		-		-		-		-		-
Payable to the Company		0		-		1		-		1		-		-
Total liabilities		6		144		209		13		537		37		46

NET ASSETS	$	20,470	$	126,469	$	235,467	$	69,195	$	606,616	$	39,579	$	48,110

Fair value per share (NAV)	$	7.83	$	9.48	$	11.50	$	10.10	$	8.98	$	10.34	$	12.15
Shares outstanding in the Separate Account		2,614		13,341		20,475		6,851		67,552		3,828		3,960

⁽¹⁾ Investments in mutual fund shares, at cost	$	33,158	$	138,495	$	280,582	$	70,062	$	759,126	$	42,310	$	44,985

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Protective Life Dynamic Allocation Series – Moderate		Royce Capital Fund Micro-Cap SC		Royce Capital Fund Small-Cap SC		Rydex Commodities Strategy		Rydex Inverse Government Long Bond		T. Rowe Price All-Cap Opportunities Portfolio		T. Rowe Price Blue Chip Growth Portfolio II

ASSETS:
Investments at fair value ⁽¹⁾	$	585,407	$	8,004	$	137,805	$	9	$	8	$	503	$	5,117

Receivable from the contracts		13		-		-		-		-		-		6
Receivable from the fund manager		-		8		137		0		0		0		-
Receivable from the Company		0		-		-		-		-		-		-
Total receivables		13		8		137		0		0		0		6

Total assets		585,420		8,012		137,942		10		8		503		5,123

LIABILITIES:
Payable to the contracts		-		8		137		0		0		0		-
Payable to the fund manager		13		-		-		-		-		-		6
Payable to the Company		-		-		0		-		-		-		-
Total liabilities		13		8		137		0		0		0		6

NET ASSETS	$	585,407	$	8,004	$	137,805	$	9	$	8	$	503	$	5,117

Fair value per share (NAV)	$	11.29	$	7.49	$	8.18	$	101.52	$	99.00	$	28.66	$	29.23
Shares outstanding in the Separate Account		51,852		1,069		16,847		0		0		18		175

⁽¹⁾ Investments in mutual fund shares, at cost	$	632,511	$	10,502	$	157,909	$	15	$	10	$	594	$	7,048

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	T. Rowe Price Health Sciences Portfolio II		T. Rowe Price Moderate Allocation		Templeton Developing Markets VIP CL 2		Templeton Foreign VIP CL 2		Templeton Global Bond VIP Fund CL 2		Templeton Growth VIP CL 2		VanEck Global Hard Asset

ASSETS:
Investments at fair value ⁽¹⁾	$	2,400	$	351	$	2,397	$	67,901	$	200,903	$	74,951	$	236

Receivable from the contracts		-		-		-		-		-		-		-
Receivable from the fund manager		2		0		6		69		202		472		0
Receivable from the Company		-		-		-		-		-		-		-
Total receivables		2		0		6		69		202		472		0

Total assets		2,402		351		2,403		67,969		201,105		75,423		236

LIABILITIES:
Payable to the contracts		2		0		6		69		202		472		0
Payable to the fund manager		-		-		-		-		-		-		-
Payable to the Company		-		-		-		0		0		1		-
Total liabilities		2		0		6		69		203		472		0

NET ASSETS	$	2,400	$	351	$	2,397	$	67,901	$	200,903	$	74,950	$	236

Fair value per share (NAV)	$	52.52	$	17.81	$	7.46	$	12.17	$	12.48	$	10.24	$	28.39
Shares outstanding in the Separate Account		46		20		321		5,579		16,098		7,319		8

⁽¹⁾ Investments in mutual fund shares, at cost	$	2,526	$	373	$	2,915	$	82,324	$	295,626	$	83,032	$	134

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Vanguard VIF Balanced		Vanguard VIF Capital Growth		Vanguard VIF Conservative Allocation		Vanguard VIF Diversified Val		Vanguard VIF Equity Income		Vanguard VIF Equity Index		Vanguard VIF Global Bond Index

ASSETS:
Investments at fair value ⁽¹⁾	$	808	$	249	$	1,198	$	67	$	753	$	1,362	$	215

Receivable from the contracts		-		-		-		-		-		-		-
Receivable from the fund manager		0		0		0		0		4		0		0
Receivable from the Company		-		-		-		-		-		-		-
Total receivables		0		0		0		0		4		0		0

Total assets		808		249		1,199		67		757		1,362		215

LIABILITIES:
Payable to the contracts		0		0		0		0		4		0		0
Payable to the fund manager		-		-		-		-		-		-		-
Payable to the Company		-		-		-		-		-		-		-
Total liabilities		0		0		0		0		4		0		0

NET ASSETS	$	808	$	249	$	1,198	$	67	$	753	$	1,362	$	215

Fair value per share (NAV)	$	21.72	$	38.81	$	22.75	$	14.01	$	24.11	$	50.74	$	17.83
Shares outstanding in the Separate Account		37		6		53		5		31		27		12

⁽¹⁾ Investments in mutual fund shares, at cost	$	958	$	306	$	1,323	$	72	$	800	$	1,497	$	238

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Vanguard VIF Growth		Vanguard VIF High Yield Bond		Vanguard VIF International		Vanguard VIF Mid-Cap Index		Vanguard VIF Moderate Allocation		Vanguard VIF Money Market		Vanguard VIF Real Estate Index

ASSETS:
Investments at fair value ⁽¹⁾	$	936	$	173	$	701	$	834	$	660	$	1,870	$	331

Receivable from the contracts		-		-		0		-		-		-		-
Receivable from the fund manager		5		0		-		3		0		9		0
Receivable from the Company		-		-		-		-		-		-		-
Total receivables		5		0		0		3		0		9		0

Total assets		941		173		701		837		660		1,879		331

LIABILITIES:
Payable to the contracts		5		0		-		3		0		9		0
Payable to the fund manager		-		-		0		-		-		-		-
Payable to the Company		-		-		-		-		-		-		-
Total liabilities		5		0		0		3		0		9		0

NET ASSETS	$	936	$	173	$	701	$	834	$	660	$	1,870	$	331

Fair value per share (NAV)	$	18.13	$	6.95	$	22.52	$	21.38	$	26.65	$	1.00	$	11.53
Shares outstanding in the Separate Account		52		25		31		39		25		1,870		29

⁽¹⁾ Investments in mutual fund shares, at cost	$	1,499	$	194	$	1,009	$	1,035	$	806	$	1,870	$	400

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Vanguard VIF Short Term Investment Grade		Vanguard VIF Total Bond Market Index		Vanguard VIF Total International Stock Market Index		Vanguard VIF Total Stock Mkt Index		Western Asset Core Plus VIT II

ASSETS:
Investments at fair value ⁽¹⁾	$	1,579	$	1,701	$	1,151	$	1,873	$	3,471

Receivable from the contracts		-		-		-		-		-
Receivable from the fund manager		0		0		0		0		4
Receivable from the Company		-		-		-		-		-
Total receivables		0		0		0		0		4

Total assets		1,579		1,701		1,151		1,874		3,475

LIABILITIES:
Payable to the contracts		0		0		0		0		4
Payable to the fund manager		-		-		-		-		-
Payable to the Company		-		-		-		-		-
Total liabilities		0		0		0		0		4

NET ASSETS	$	1,579	$	1,701	$	1,151	$	1,873	$	3,471

Fair value per share (NAV)	$	9.92	$	10.32	$	19.05	$	42.30	$	4.83
Shares outstanding in the Separate Account		159		165		60		44		719

⁽¹⁾ Investments in mutual fund shares, at cost	$	1,699	$	1,914	$	1,259	$	2,120	$	4,090

Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.

	(Concluded)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	AB VPS Growth And Income B			AB VPS Large Cap Growth B			AB VPS Small Cap Growth B			AB VPS Small/Mid Cap Value B			American Century VP Balanced I			American Funds IS Asset Allocation Class 2			American Funds IS Asset Allocation Class 4

INVESTMENT INCOME:
Dividend income	$	4		$	-		$	-		$	2		$	0		$	1,620		$	554

EXPENSES:
Mortality and expense risk and admin		4			31			1			3			0			780			369

NET INVESTMENT INCOME (LOSS)		1			(31	)		(1	)		(1	)		0			840			185

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		(14	)		(32	)		(2	)		(20	)		0			1,352			(433	)
Capital gain distributions		65			547			51			34			-			8,822			3,627

Net realized gain (loss) on investments		51			514			49			14			0			10,174			3,194

Change in net unrealized appreciation (depreciation) on investments		(81	)		(1,266	)		(95	)		(48	)		(3	)		(24,889	)		(9,126	)

Net realized and unrealized gain (loss) on investments		(30	)		(751	)		(46	)		(33	)		(3	)		(14,716	)		(5,932	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(29	)	$	(783	)	$	(48	)	$	(34	)	$	(2	)	$	(13,876	)	$	(5,747	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	American Funds IS Capital Income Builder Class 2			American Funds IS Capital Income Builder Class 4			American Funds IS Capital World Growth And Income Fund 2			American Funds IS Capital World Growth And Income Fund 4			American Funds IS Global Bond 2			American Funds IS Global Growth Class 2			American Funds IS Global Growth Class 4

INVESTMENT INCOME:
Dividend income	$	201		$	173		$	148		$	66		$	1		$	631		$	67

EXPENSES:
Mortality and expense risk and admin		57			77			49			31			2			764			173

NET INVESTMENT INCOME (LOSS)		144			96			99			35			(1	)		(132	)		(107	)

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		(4	)		28			(3	)		(9	)		(0	)		111			(58	)
Capital gain distributions		-			-			1,375			668			5			10,062			1,687

Net realized gain (loss) on investments		(4	)		28			1,371			659			5			10,173			1,629

Change in net unrealized appreciation (depreciation) on investments		(704	)		(759	)		(2,769	)		(1,336	)		(45	)		(37,370	)		(6,340	)

Net realized and unrealized gain (loss) on investments		(708	)		(731	)		(1,397	)		(677	)		(40	)		(27,197	)		(4,711	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(564	)	$	(635	)	$	(1,298	)	$	(642	)	$	(42	)	$	(27,330	)	$	(4,818	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	American Funds IS Global Small Capitalization Class 2			American Funds IS Global Small Capitalization Class 4			American Funds IS Growth – Income Class 2			American Funds IS Growth – Income Class 4			American Funds IS Growth Class 2			American Funds IS Growth Class 4			American Funds IS High-Income Bond 2

INVESTMENT INCOME:
Dividend income	$	-		$	-		$	213		$	168		$	176		$	48		$	39

EXPENSES:
Mortality and expense risk and admin		51			3			114			166			399			494			2

NET INVESTMENT INCOME (LOSS)		(51	)		(3	)		99			2			(222	)		(447	)		37

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		(4	)		(0	)		16			(219	)		(53	)		(1,618	)		0
Capital gain distributions		2,167			72			1,471			1,636			7,127			7,187			-

Net realized gain (loss) on investments		2,163			72			1,486			1,417			7,074			5,569			0

Change in net unrealized appreciation (depreciation) on investments		(4,448	)		(153	)		(4,211	)		(4,856	)		(25,234	)		(24,998	)		(56	)

Net realized and unrealized gain (loss) on investments		(2,284	)		(81	)		(2,724	)		(3,439	)		(18,160	)		(19,429	)		(56	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(2,335	)	$	(84	)	$	(2,625	)	$	(3,438	)	$	(18,382	)	$	(19,876	)	$	(19	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	American Funds IS International Class 2			American Funds IS International Class 4			American Funds IS International Growth And Income 2			American Funds IS New World Class 2			American Funds IS New World Class 4			American Funds IS The Bond Fund Of America 2			American Funds IS The Bond Fund Of America 4

INVESTMENT INCOME:
Dividend income	$	169		$	8		$	26		$	121		$	4		$	921		$	241

EXPENSES:
Mortality and expense risk and admin		77			5			3			72			3			188			98

NET INVESTMENT INCOME (LOSS)		91			3			23			49			0			733			142

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		(14	)		(0	)		0			(9	)		3			(41	)		(80	)
Capital gain distributions		1,294			49			180			799			24			270			100

Net realized gain (loss) on investments		1,280			49			180			789			28			229			20

Change in net unrealized appreciation (depreciation) on investments		(3,717	)		(137	)		(179	)		(3,176	)		(109	)		(4,045	)		(1,421	)

Net realized and unrealized gain (loss) on investments		(2,437	)		(88	)		2			(2,386	)		(81	)		(3,816	)		(1,401	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(2,345	)	$	(85	)	$	24		$	(2,337	)	$	(81	)	$	(3,083	)	$	(1,259	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	American Funds IS U.S. Government Securities Fund 2			American Funds IS U.S. Government Securities Fund 4			American Funds IS Washington Mutual Investors Fund 2			American Funds IS Washington Mutual Investors Fund 4			Blackrock 60/40 Target Allocation ETF V.I. Fund			Blackrock Global Allocation V.I. III			Blackrock International V.I. I

INVESTMENT INCOME:
Dividend income	$	131		$	147		$	740		$	53		$	58		$	-		$	3

EXPENSES:
Mortality and expense risk and admin		27			49			307			38			15			50			1

NET INVESTMENT INCOME (LOSS)		104			99			432			15			43			(50	)		2

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		(25	)		(130	)		172			(0	)		(38	)		(3	)		(4	)
Capital gain distributions		-			-			8,471			668			1			94			8

Net realized gain (loss) on investments		(25	)		(130	)		8,643			668			(37	)		91			4

Change in net unrealized appreciation (depreciation) on investments		(508	)		(541	)		(12,730	)		(1,001	)		(190	)		(637	)		(34	)

Net realized and unrealized gain (loss) on investments		(533	)		(671	)		(4,087	)		(334	)		(227	)		(546	)		(29	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(429	)	$	(573	)	$	(3,655	)	$	(318	)	$	(184	)	$	(596	)	$	(27	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Calvert VP SRI Balanced			Clearbridge Variable Dividend Strategy II			Clearbridge Variable Large Cap Growth II			ClearBridge Variable Mid Cap Portfolio Class II			ClearBridge Variable Small Cap Growth II			Columbia VP Balanced 2			Columbia VP Emerging Markets Bond 2

INVESTMENT INCOME:
Dividend income	$	14		$	2		$	-		$	25		$	-		$	-		$	3

EXPENSES:
Mortality and expense risk and admin		18			1			2			328			139			16			0

NET INVESTMENT INCOME (LOSS)		(4	)		1			(2	)		(303	)		(139	)		(16	)		3

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		19			0			(2	)		5,738			35			(17	)		0
Capital gain distributions		110			16			10			1,652			284			-			-

Net realized gain (loss) on investments		129			16			9			7,390			319			(17	)		0

Change in net unrealized appreciation (depreciation) on investments		(377	)		(23	)		(52	)		(19,285	)		(5,945	)		(256	)		(3	)

Net realized and unrealized gain (loss) on investments		(248	)		(7	)		(43	)		(11,895	)		(5,626	)		(273	)		(3	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(252	)	$	(5	)	$	(45	)	$	(12,198	)	$	(5,765	)	$	(289	)	$	(0	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Columbia VP Intermediate Bond 2			Columbia VP Limited Duration Credit 2			Columbia VP Select Mid Cap Value 2			Columbia VP Strategic Income 2			DFA VA Equity Allocation Portfolio Instl			DFA VA Global Bond			DFA VA Global Moderate Allocation Instl

INVESTMENT INCOME:
Dividend income	$	23		$	1		$	-		$	70		$	2		$	13		$	8

EXPENSES:
Mortality and expense risk and admin		8			2			3			21			0			2			1

NET INVESTMENT INCOME (LOSS)		15			(1	)		(3	)		49			2			11			6

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		(2	)		(1	)		(2	)		(0	)		(0	)		0			(1	)
Capital gain distributions		1			-			-			107			3			-			7

Net realized gain (loss) on investments		(2	)		(1	)		(2	)		107			3			0			6

Change in net unrealized appreciation (depreciation) on investments		(122	)		(4	)		(13	)		(345	)		(10	)		(60	)		(65	)

Net realized and unrealized gain (loss) on investments		(124	)		(5	)		(15	)		(239	)		(7	)		(60	)		(59	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(109	)	$	(6	)	$	(18	)	$	(190	)	$	(5	)	$	(49	)	$	(53	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	DFA VA International Small			DFA VA International Value			DFA VA Short-Term Fixed			DFA VA US Large Value			DFA VA US Targeted Value			Fidelity Contrafund Portfolio SC2			Fidelity Equity Income SC2

INVESTMENT INCOME:
Dividend income	$	18		$	39		$	10		$	53		$	16		$	424		$	91

EXPENSES:
Mortality and expense risk and admin		1			2			2			6			3			1,835			59

NET INVESTMENT INCOME (LOSS)		16			37			8			48			13			(1,411	)		32

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		(0	)		0			(0	)		(1	)		0			28,550			71
Capital gain distributions		12			11			-			29			95			8,611			183

Net realized gain (loss) on investments		12			11			(0	)		28			95			37,161			254

Change in net unrealized appreciation (depreciation) on investments		(98	)		(49	)		(15	)		(139	)		(136	)		(108,422	)		(675	)

Net realized and unrealized gain (loss) on investments		(86	)		(38	)		(15	)		(111	)		(41	)		(71,261	)		(421	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(70	)	$	(2	)	$	(8	)	$	(64	)	$	(28	)	$	(72,673	)	$	(389	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Fidelity Freedom Fund - 2015 Maturity SC2			Fidelity Freedom Fund - 2020 Maturity SC2			Fidelity Growth Portfolio SC2			Fidelity Index 500 Portfolio SC2			Fidelity Investment Grade Bonds SC2			Fidelity Mid Cap SC2			Fidelity VIP Asset Manager Growth Service 2

INVESTMENT INCOME:
Dividend income	$	22		$	44		$	10		$	4,232		$	5,533		$	433		$	1

EXPENSES:
Mortality and expense risk and admin		13			20			31			3,947			2,670			1,589			0

NET INVESTMENT INCOME (LOSS)		10			24			(21	)		285			2,863			(1,156	)		1

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		(26	)		(5	)		(80	)		118,624			(3,081	)		12,357			(0	)
Capital gain distributions		121			241			218			5,729			14,446			11,965			-

Net realized gain (loss) on investments		95			237			138			124,353			11,364			24,323			(0	)

Change in net unrealized appreciation (depreciation) on investments		(317	)		(713	)		(1,039	)		(269,193	)		(55,746	)		(62,154	)		(3	)

Net realized and unrealized gain (loss) on investments		(222	)		(477	)		(902	)		(144,839	)		(44,381	)		(37,832	)		(3	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(213	)	$	(453	)	$	(922	)	$	(144,554	)	$	(41,519	)	$	(38,988	)	$	(2	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Fidelity VIP Asset Manager Service 2			Fidelity VIP Balanced Service 2			Fidelity VIP Bond Index Port			Fidelity VIP Energy Service 2			Fidelity VIP Extended Market Index Portfolio			Fidelity VIP Fundsmanager 20% Service 2			Fidelity VIP Fundsmanager 60% Service 2

INVESTMENT INCOME:
Dividend income	$	2		$	149		$	6		$	27		$	1		$	22		$	-

EXPENSES:
Mortality and expense risk and admin		1			89			2			11			0			9			0

NET INVESTMENT INCOME (LOSS)		1			60			4			16			0			13			(0	)

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		(5	)		(137	)		0			(37	)		(0	)		(1	)		(1	)
Capital gain distributions		3			266			-			-			1			39			-

Net realized gain (loss) on investments		(1	)		129			0			(37	)		1			38			(1	)

Change in net unrealized appreciation (depreciation) on investments		(12	)		(1,647	)		(27	)		302			(4	)		(135	)		-

Net realized and unrealized gain (loss) on investments		(14	)		(1,518	)		(27	)		264			(4	)		(97	)		(1	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(12	)	$	(1,458	)	$	(23	)	$	280		$	(3	)	$	(84	)	$	(1	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Fidelity VIP Fundsmanager 85% Service 2		Fidelity VIP Health Care Port Service 2			Fidelity VIP International Index Port			Fidelity VIP Target Volatility Service 2			Fidelity VIP Technology Initial			Fidelity VIP Total Market Index Port			Fidelity VIP Utilities Initial

INVESTMENT INCOME:
Dividend income	$	5	$	-		$	4		$	2		$	-		$	18		$	1

EXPENSES:
Mortality and expense risk and admin		1		4			1			1			1			7			0

NET INVESTMENT INCOME (LOSS)		4		(4	)		3			1			(1	)		11			1

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		0		1			3			(0	)		1			(8	)		2
Capital gain distributions		1		11			-			1			1			0			-

Net realized gain (loss) on investments		1		13			3			0			1			(7	)		2

Change in net unrealized appreciation (depreciation) on investments		17		(22	)		(20	)		(13	)		(30	)		(138	)		(1	)

Net realized and unrealized gain (loss) on investments		19		(9	)		(18	)		(12	)		(28	)		(146	)		1

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	22	$	(13	)	$	(14	)	$	(11	)	$	(29	)	$	(135	)	$	2

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Fidelity VIP Value Strategies Service 2			Franklin Dynatech VIP Fund			Franklin Income VIP CL 2			Franklin Multi-Asset Dynamic Multi-Strat VIT			Franklin Mutual Global Discovery VIP CL 2			Franklin Mutual Shares VIP CL 2			Franklin Rising Dividend VIP CL 2

INVESTMENT INCOME:
Dividend income	$	5		$	-		$	5,970		$	-		$	49		$	6,341		$	1,511

EXPENSES:
Mortality and expense risk and admin		2			242			1,406			150			32			4,274			2,422

NET INVESTMENT INCOME (LOSS)		3			(242	)		4,563			(150	)		17			2,067			(912	)

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		3			2,939			5,784			458			12			30,802			29,520
Capital gain distributions		22			12,507			2,423			376			292			38,293			24,103

Net realized gain (loss) on investments		24			15,446			8,207			833			305			69,095			53,624

Change in net unrealized appreciation (depreciation) on investments		(32	)		(31,126	)		(23,648	)		(3,270	)		(558	)		(114,874	)		(101,291	)

Net realized and unrealized gain (loss) on investments		(8	)		(15,680	)		(15,441	)		(2,437	)		(253	)		(45,779	)		(47,667	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(5	)	$	(15,922	)	$	(10,878	)	$	(2,587	)	$	(237	)	$	(43,712	)	$	(48,579	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Franklin Small Cap Value VIP CL 2			Franklin Small-Mid Cap Growth VIP CL 2			Franklin Strategic Income VIP CL 2			Franklin US Government Securities VIP CL 2			Goldman Sachs Global Trends Allocation Fund SC			Goldman Sachs International Equity Insights			Goldman Sachs International Equity Insights SC

INVESTMENT INCOME:
Dividend income	$	315		$	-		$	258		$	8,787		$	-		$	579		$	860

EXPENSES:
Mortality and expense risk and admin		383			251			59			3,793			90			191			270

NET INVESTMENT INCOME (LOSS)		(68	)		(251	)		199			4,994			(90	)		388			590

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		2,166			408			(16	)		(5,535	)		(85	)		(441	)		(33	)
Capital gain distributions		5,941			6,101			-			-			245			-			-

Net realized gain (loss) on investments		8,107			6,509			(16	)		(5,535	)		160			(441	)		(33	)

Change in net unrealized appreciation (depreciation) on investments		(12,985	)		(18,235	)		(954	)		(42,521	)		(1,564	)		(3,108	)		(5,649	)

Net realized and unrealized gain (loss) on investments		(4,878	)		(11,726	)		(971	)		(48,057	)		(1,404	)		(3,549	)		(5,682	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(4,946	)	$	(11,977	)	$	(772	)	$	(43,063	)	$	(1,494	)	$	(3,161	)	$	(5,092	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Goldman Sachs Large Cap Value			Goldman Sachs Large Cap Value Fund SC			Goldman Sachs Mid Cap Value			Goldman Sachs Mid Cap Value SC			Goldman Sachs Small Cap Equity Insights			Goldman Sachs Small Cap Equity Insights SC			Goldman Sachs Strategic Growth

INVESTMENT INCOME:
Dividend income	$	440		$	938		$	40		$	329		$	57		$	9		$	-

EXPENSES:
Mortality and expense risk and admin		389			956			57			921			228			86			334

NET INVESTMENT INCOME (LOSS)		51			(18	)		(17	)		(592	)		(171	)		(77	)		(334	)

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		(205	)		(320	)		(95	)		4,050			(322	)		(135	)		(641	)
Capital gain distributions		3,127			8,126			859			11,547			192			110			4,754

Net realized gain (loss) on investments		2,922			7,806			764			15,597			(130	)		(26	)		4,112

Change in net unrealized appreciation (depreciation) on investments		(5,797	)		(15,969	)		(1,536	)		(34,582	)		(4,329	)		(2,452	)		(16,451	)

Net realized and unrealized gain (loss) on investments		(2,875	)		(8,163	)		(772	)		(18,985	)		(4,458	)		(2,478	)		(12,339	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(2,824	)	$	(8,181	)	$	(789	)	$	(19,577	)	$	(4,629	)	$	(2,555	)	$	(12,672	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Goldman Sachs Strategic Growth SC			Goldman Sachs US Equity Insights			Goldman Sachs US Equity Insights SC			Goldman Sachs VIT Core Fixed Income Fund SC			Goldman Sachs VIT Mid Cap Growth Fund SC			Guggenheim Floating Rate Strategies (Series F)			Guggenheim Global Managed Futures Strategy

INVESTMENT INCOME:
Dividend income	$	-		$	200		$	4		$	422		$	-		$	95		$	18

EXPENSES:
Mortality and expense risk and admin		1,026			342			9			291			464			39			6

NET INVESTMENT INCOME (LOSS)		(1,026	)		(142	)		(5	)		130			(464	)		55			12

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		13,428			(504	)		(7	)		(277	)		(550	)		(31	)		(9	)
Capital gain distributions		14,770			127			4			-			1,409			-			4

Net realized gain (loss) on investments		28,197			(377	)		(3	)		(277	)		860			(31	)		(6	)

Change in net unrealized appreciation (depreciation) on investments		(74,022	)		(5,938	)		(170	)		(4,830	)		(15,169	)		(117	)		18

Net realized and unrealized gain (loss) on investments		(45,825	)		(6,315	)		(173	)		(5,107	)		(14,309	)		(149	)		12

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(46,850	)	$	(6,457	)	$	(178	)	$	(4,976	)	$	(14,772	)	$	(93	)	$	24

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Guggenheim Long Short Equity			Guggenheim Multi-Hedge Strategies			Invesco V.I. American Franchise I			Invesco V.I. American Franchise II			Invesco V.I. American Value II			Invesco V.I. Balanced Risk Allocation II			Invesco V.I. Capital Appreciation Fund I

INVESTMENT INCOME:
Dividend income	$	1		$	9		$	-		$	-		$	270		$	4,504		$	-

EXPENSES:
Mortality and expense risk and admin		1			7			63			29			648			847			104

NET INVESTMENT INCOME (LOSS)		(1	)		1			(63	)		(29	)		(378	)		3,657			(104	)

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		1			0			(32	)		(33	)		6,109			(521	)		(19	)
Capital gain distributions		-			7			1,439			779			10,937			2,179			2,598

Net realized gain (loss) on investments		1			8			1,407			746			17,046			1,658			2,579

Change in net unrealized appreciation (depreciation) on investments		(24	)		(40	)		(3,618	)		(1,844	)		(21,896	)		(16,116	)		(5,673	)

Net realized and unrealized gain (loss) on investments		(23	)		(32	)		(2,211	)		(1,098	)		(4,850	)		(14,458	)		(3,094	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(24	)	$	(31	)	$	(2,275	)	$	(1,127	)	$	(5,228	)	$	(10,802	)	$	(3,198	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Invesco V.I. Capital Appreciation Fund II			Invesco V.I. Comstock I			Invesco V.I. Comstock II			Invesco V.I. Conservative Balance II			Invesco V.I. Discovery Mid Cap Growth Fund I			Invesco V.I. Discovery Mid Cap Growth Fund II			Invesco V.I. Equity and Income II

INVESTMENT INCOME:
Dividend income	$	-		$	373		$	1,681		$	114		$	-		$	-		$	1,883

EXPENSES:
Mortality and expense risk and admin		276			285			1,510			44			49			267			1,658

NET INVESTMENT INCOME (LOSS)		(276	)		88			171			70			(49	)		(267	)		225

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		6,113			1,215			14,151			(30	)		(41	)		1,132			16,559
Capital gain distributions		9,593			711			3,833			752			947			7,692			17,374

Net realized gain (loss) on investments		15,706			1,926			17,984			722			906			8,824			33,934

Change in net unrealized appreciation (depreciation) on investments		(30,462	)		(2,083	)		(22,012	)		(1,432	)		(2,377	)		(20,080	)		(52,130	)

Net realized and unrealized gain (loss) on investments		(14,756	)		(158	)		(4,028	)		(711	)		(1,471	)		(11,256	)		(18,197	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(15,032	)	$	(69	)	$	(3,857	)	$	(641	)	$	(1,520	)	$	(11,523	)	$	(17,972	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Invesco V.I. Global Fund I			Invesco V.I. Global Fund II			Invesco V.I. Global Real Estate II			Invesco V.I. Global Strategic Income Fund I			Invesco V.I. Global Strategic Income Fund II			Invesco V.I. Government Securities II			Invesco V.I. Growth & Income I

INVESTMENT INCOME:
Dividend income	$	-		$	-		$	76		$	-		$	-		$	2,258		$	424

EXPENSES:
Mortality and expense risk and admin		90			1,970			57			73			2,596			1,208			322

NET INVESTMENT INCOME (LOSS)		(90	)		(1,970	)		19			(73	)		(2,596	)		1,050			101

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		(44	)		19,030			300			(170	)		(4,169	)		(1,438	)		625
Capital gain distributions		1,234			31,634			-			-			-			-			2,410

Net realized gain (loss) on investments		1,190			50,665			300			(170	)		(4,169	)		(1,438	)		3,035

Change in net unrealized appreciation (depreciation) on investments		(4,336	)		(130,494	)		(3,147	)		(548	)		(28,256	)		(16,424	)		(5,128	)

Net realized and unrealized gain (loss) on investments		(3,146	)		(79,829	)		(2,846	)		(717	)		(32,425	)		(17,862	)		(2,093	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(3,236	)	$	(81,799	)	$	(2,827	)	$	(790	)	$	(35,021	)	$	(16,812	)	$	(1,992	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Invesco V.I. Growth & Income II			Invesco V.I. EQV International Equity Fund II			Invesco V.I. Main Street Fund I			Invesco V.I. Main Street Fund II			Invesco V.I. Main Street Small Cap Fund II			Invesco V.I. Small Cap Equity II			Invesco V.I. U.S. Government Money Portfolio I

INVESTMENT INCOME:
Dividend income	$	3,416		$	385		$	104		$	1,005		$	2		$	-		$	25,908

EXPENSES:
Mortality and expense risk and admin		4,079			259			93			868			3			107			19,070

NET INVESTMENT INCOME (LOSS)		(663	)		126			11			137			(1	)		(107	)		6,837

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		66,551			(522	)		92			1,803			(0	)		502			-
Capital gain distributions		25,044			3,009			2,670			34,936			75			2,339			-

Net realized gain (loss) on investments		91,595			2,487			2,762			36,739			75			2,841			-

Change in net unrealized appreciation (depreciation) on investments		(138,915	)		(9,667	)		(4,651	)		(61,880	)		(106	)		(6,236	)		-

Net realized and unrealized gain (loss) on investments		(47,320	)		(7,180	)		(1,889	)		(25,140	)		(31	)		(3,395	)		-

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(47,983	)	$	(7,055	)	$	(1,878	)	$	(25,003	)	$	(33	)	$	(3,502	)	$	6,837

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Janus Henderson Balanced Service Class			Janus Henderson Forty - Service Class			Janus Henderson Global Technology - Service Class			Janus Henderson Overseas Portfolio - Service Class			Lord Abbett Bond Debenture VC			Lord Abbett Dividend Growth Fund			Lord Abbett Growth & Income VC

INVESTMENT INCOME:
Dividend income	$	3		$	0		$	-		$	0		$	22,428		$	842		$	764

EXPENSES:
Mortality and expense risk and admin		1			0			0			0			5,439			932			652

NET INVESTMENT INCOME (LOSS)		2			(0	)		(0	)		0			16,988			(91	)		112

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		0			(0	)		(0	)		(1	)		(5,114	)		862			357
Capital gain distributions		0			-			-			-			1,411			13,891			4,662

Net realized gain (loss) on investments		0			(0	)		(0	)		(1	)		(3,703	)		14,753			5,020

Change in net unrealized appreciation (depreciation) on investments		(5	)		(1	)		(1	)		2			(92,847	)		(34,428	)		(12,484	)

Net realized and unrealized gain (loss) on investments		(5	)		(1	)		(1	)		2			(96,551	)		(19,676	)		(7,464	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(3	)	$	(2	)	$	(1	)	$	2		$	(79,562	)	$	(19,766	)	$	(7,352	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Lord Abbett Growth Opportunities VC			Lord Abbett Mid Cap Stock VC			Lord Abbett Series Fundamental Equity VC			Lord Abbett Series Short Duration Income VC			MFS Growth Series IC			MFS Growth Series SC			MFS Investors Trust IC

INVESTMENT INCOME:
Dividend income	$	-		$	357		$	1,021		$	63		$	-		$	-		$	38

EXPENSES:
Mortality and expense risk and admin		272			443			1,237			13			77			424			78

NET INVESTMENT INCOME (LOSS)		(272	)		(86	)		(216	)		50			(77	)		(424	)		(40	)

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		(1,281	)		556			11,862			(0	)		(54	)		(47	)		439
Capital gain distributions		3,658			2,710			12,006			-			652			5,168			731

Net realized gain (loss) on investments		2,377			3,266			23,868			(0	)		598			5,121			1,170

Change in net unrealized appreciation (depreciation) on investments		(16,199	)		(9,948	)		(47,805	)		(111	)		(2,994	)		(22,395	)		(2,370	)

Net realized and unrealized gain (loss) on investments		(13,821	)		(6,682	)		(23,937	)		(111	)		(2,396	)		(17,274	)		(1,199	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(14,094	)	$	(6,768	)	$	(24,153	)	$	(61	)	$	(2,473	)	$	(17,697	)	$	(1,239	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	MFS Investors Trust SC			MFS New Discovery IC			MFS New Discovery SC			MFS Research IC			MFS Research SC			MFS Total Return IC			MFS Total Return SC

INVESTMENT INCOME:
Dividend income	$	176		$	-		$	-		$	24		$	6		$	279		$	660

EXPENSES:
Mortality and expense risk and admin		510			31			537			66			34			205			460

NET INVESTMENT INCOME (LOSS)		(335	)		(31	)		(537	)		(42	)		(27	)		74			200

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		2,103			(85	)		(78	)		142			102			275			532
Capital gain distributions		5,966			684			17,977			617			424			1,395			3,925

Net realized gain (loss) on investments		8,069			599			17,899			760			526			1,670			4,457

Change in net unrealized appreciation (depreciation) on investments		(17,378	)		(1,485	)		(36,069	)		(1,816	)		(1,211	)		(3,776	)		(10,219	)

Net realized and unrealized gain (loss) on investments		(9,309	)		(885	)		(18,171	)		(1,056	)		(685	)		(2,106	)		(5,762	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(9,644	)	$	(916	)	$	(18,707	)	$	(1,098	)	$	(712	)	$	(2,032	)	$	(5,563	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	MFS Utilities IC			MFS Utilities SC			MFS VIT II Emerging Markets Equity SC			MFS VIT II International Value SC			MFS VIT II MA Investors Growth Stock IC			MFS VIT II MA Investors Growth Stock SC			MFS VIT Total Return Bond SC

INVESTMENT INCOME:
Dividend income	$	45		$	468		$	10		$	89		$	2		$	-		$	8,321

EXPENSES:
Mortality and expense risk and admin		23			250			2			160			23			285			3,470

NET INVESTMENT INCOME (LOSS)		22			218			8			(71	)		(21	)		(285	)		4,850

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		51			1,263			(5	)		228			(18	)		66			(2,483	)
Capital gain distributions		72			823			18			788			223			4,414			3,939

Net realized gain (loss) on investments		123			2,086			13			1,016			205			4,480			1,456

Change in net unrealized appreciation (depreciation) on investments		(156	)		(2,494	)		(84	)		(6,447	)		(617	)		(12,069	)		(63,694	)

Net realized and unrealized gain (loss) on investments		(33	)		(408	)		(71	)		(5,430	)		(412	)		(7,589	)		(62,237	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(11	)	$	(190	)	$	(63	)	$	(5,501	)	$	(433	)	$	(7,874	)	$	(57,387	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	MFS VIT Value SC			Morgan Stanley VIF Core Plus Fixed Income Portfolio			Morgan Stanley VIF Global Real Estate II			PIMCO Income Advisor			PIMCO VIT All Asset Advisor			PIMCO VIT Global Diversified Allocation Portfolio			PIMCO VIT High Yield Advance

INVESTMENT INCOME:
Dividend income	$	1,854		$	-		$	245		$	18		$	215		$	251		$	7

EXPENSES:
Mortality and expense risk and admin		1,755			0			73			5			35			74			2

NET INVESTMENT INCOME (LOSS)		99			(0	)		173			13			180			177			5

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		9,052			(0	)		108			(2	)		315			(52	)		(11	)
Capital gain distributions		9,759			-			217			0			205			1,741			-

Net realized gain (loss) on investments		18,811			(0	)		325			(2	)		520			1,689			(11	)

Change in net unrealized appreciation (depreciation) on investments		(33,122	)		(1	)		(2,366	)		(49	)		(1,232	)		(3,014	)		(14	)

Net realized and unrealized gain (loss) on investments		(14,311	)		(1	)		(2,041	)		(51	)		(712	)		(1,325	)		(25	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(14,212	)	$	(1	)	$	(1,868	)	$	(38	)	$	(531	)	$	(1,148	)	$	(20	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	PIMCO VIT Long-Term US Government Advisor			PIMCO VIT Low Duration Advisor			PIMCO VIT Real Return Advisor			PIMCO VIT Short-Term Advisor			PIMCO VIT Total Return Advisor			Protective Life Dynamic Allocation Series – Conservative			Protective Life Dynamic Allocation Series – Growth

INVESTMENT INCOME:
Dividend income	$	463		$	2,115		$	18,092		$	1,022		$	16,628		$	463		$	614

EXPENSES:
Mortality and expense risk and admin		266			1,365			2,859			714			7,113			448			584

NET INVESTMENT INCOME (LOSS)		197			751			15,233			308			9,516			15			30

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		(341	)		(869	)		(1,525	)		(127	)		(6,991	)		109			574
Capital gain distributions		-			-			-			113			-			992			-

Net realized gain (loss) on investments		(341	)		(869	)		(1,525	)		(14	)		(6,991	)		1,101			574

Change in net unrealized appreciation (depreciation) on investments		(8,604	)		(9,750	)		(50,767	)		(1,146	)		(117,664	)		(9,293	)		(13,406	)

Net realized and unrealized gain (loss) on investments		(8,945	)		(10,619	)		(52,292	)		(1,160	)		(124,655	)		(8,192	)		(12,832	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(8,748	)	$	(9,869	)	$	(37,059	)	$	(852	)	$	(115,139	)	$	(8,176	)	$	(12,801	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Protective Life Dynamic Allocation Series – Moderate			Royce Capital Fund Micro-Cap SC			Royce Capital Fund Small-Cap SC			Rydex Commodities Strategy		Rydex Inverse Government Long Bond			T. Rowe Price All-Cap Opportunities Portfolio			T. Rowe Price Blue Chip Growth Portfolio II

INVESTMENT INCOME:
Dividend income	$	5,779		$	-		$	109		$	0	$	-		$	-		$	-

EXPENSES:
Mortality and expense risk and admin		4,412			107			1,075			0		0			3			37

NET INVESTMENT INCOME (LOSS)		1,367			(107	)		(966	)		0		(0	)		(3	)		(37	)

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		313			2,455			8,721			2		1			4			(127	)
Capital gain distributions		5,317			2,621			2,526			-		-			28			278

Net realized gain (loss) on investments		5,630			5,076			11,247			2		1			32			151

Change in net unrealized appreciation (depreciation) on investments		(112,430	)		(8,439	)		(32,845	)		0		3			(91	)		(1,729	)

Net realized and unrealized gain (loss) on investments		(106,800	)		(3,362	)		(21,598	)		2		3			(59	)		(1,579	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(105,434	)	$	(3,470	)	$	(22,565	)	$	3	$	3		$	(62	)	$	(1,616	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	T. Rowe Price Health Sciences Portfolio II			T. Rowe Price Moderate Allocation			Templeton Developing Markets VIP CL 2			Templeton Foreign VIP CL 2			Templeton Global Bond VIP Fund CL 2			Templeton Growth VIP CL 2			VanEck Global Hard Asset

INVESTMENT INCOME:
Dividend income	$	-		$	4		$	67		$	1,883		$	-		$	123		$	4

EXPENSES:
Mortality and expense risk and admin		15			1			23			650			2,377			845			4

NET INVESTMENT INCOME (LOSS)		(15	)		3			44			1,233			(2,377	)		(722	)		(0	)

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		(65	)		0			(26	)		(319	)		(4,779	)		(638	)		13
Capital gain distributions		39			7			194			-			-			-			-

Net realized gain (loss) on investments		(26	)		7			168			(319	)		(4,779	)		(638	)		13

Change in net unrealized appreciation (depreciation) on investments		(71	)		(22	)		(899	)		(7,067	)		(6,851	)		(9,868	)		5

Net realized and unrealized gain (loss) on investments		(97	)		(15	)		(731	)		(7,386	)		(11,630	)		(10,507	)		18

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(112	)	$	(13	)	$	(687	)	$	(6,153	)	$	(14,007	)	$	(11,229	)	$	18

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Vanguard VIF Balanced			Vanguard VIF Capital Growth			Vanguard VIF Conservative Allocation			Vanguard VIF Diversified Val			Vanguard VIF Equity Income			Vanguard VIF Equity Index			Vanguard VIF Global Bond Index

INVESTMENT INCOME:
Dividend income	$	14		$	2		$	8		$	0		$	18		$	11		$	4

EXPENSES:
Mortality and expense risk and admin		2			1			3			0			2			3			0

NET INVESTMENT INCOME (LOSS)		12			2			5			(0	)		16			8			3

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		(1	)		(0	)		(0	)		7			(0	)		(0	)		(1	)
Capital gain distributions		70			25			14			1			75			38			1

Net realized gain (loss) on investments		69			25			13			8			75			37			1

Change in net unrealized appreciation (depreciation) on investments		(204	)		(68	)		(131	)		(14	)		(96	)		(221	)		(22	)

Net realized and unrealized gain (loss) on investments		(134	)		(43	)		(117	)		(6	)		(22	)		(184	)		(22	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(123	)	$	(42	)	$	(113	)	$	(6	)	$	(6	)	$	(176	)	$	(18	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Vanguard VIF Growth			Vanguard VIF High Yield Bond			Vanguard VIF International			Vanguard VIF Mid-Cap Index			Vanguard VIF Moderate Allocation			Vanguard VIF Money Market		Vanguard VIF Real Estate Index

INVESTMENT INCOME:
Dividend income	$	-		$	7		$	6		$	8		$	15		$	23	$	5

EXPENSES:
Mortality and expense risk and admin		3			0			2			2			2			3		1

NET INVESTMENT INCOME (LOSS)		(3	)		7			4			6			13			20		4

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		(0	)		1			(0	)		2			(0	)		-		(0	)
Capital gain distributions		256			-			91			80			27			0		12

Net realized gain (loss) on investments		255			1			91			83			27			0		12

Change in net unrealized appreciation (depreciation) on investments		(591	)		(21	)		(278	)		(256	)		(160	)		-		(108	)

Net realized and unrealized gain (loss) on investments		(335	)		(20	)		(188	)		(173	)		(133	)		0		(96	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(338	)	$	(13	)	$	(183	)	$	(167	)	$	(120	)	$	20	$	(91	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Vanguard VIF Short Term Investment Grade			Vanguard VIF Total Bond Market Index			Vanguard VIF Total International Stock Market Index			Vanguard VIF Total Stock Mkt Index			Western Asset Core Plus VIT II

INVESTMENT INCOME:
Dividend income	$	22		$	22		$	18		$	15		$	70

EXPENSES:
Mortality and expense risk and admin		4			4			2			4			38

NET INVESTMENT INCOME (LOSS)		17			18			16			11			32

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on redemption of investments		(1	)		(0	)		0			2			(7	)
Capital gain distributions		10			8			19			79			-

Net realized gain (loss) on investments		9			8			19			82			(7	)

Change in net unrealized appreciation (depreciation) on investments		(110	)		(199	)		(113	)		(367	)		(561	)

Net realized and unrealized gain (loss) on investments		(100	)		(191	)		(94	)		(285	)		(568	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(83	)	$	(172	)	$	(78	)	$	(274	)	$	(536	)

Note: Totals may not appear to foot/crossfoot due to rounding.

(Concluded)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	AB VPS Growth And Income B			AB VPS Large Cap Growth B			AB VPS Small Cap Growth B			AB VPS Small/Mid Cap Value B			American Century VP Balanced I			American Funds IS Asset Allocation Class 2			American Funds IS Asset Allocation Class 4

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	1		$	(31	)	$	(1	)	$	(1	)	$	0		$	840		$	185
Net realized gain (loss) on investments		51			514			49			14			0			10,174			3,194
Change in net unrealized appreciation (depreciation) on investments		(81	)		(1,266	)		(95	)		(48	)		(3	)		(24,889	)		(9,126	)

Net increase (decrease) in net assets resulting from operations		(29	)		(783	)		(48	)		(34	)		(2	)		(13,876	)		(5,747	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		430			5,718			231			353			60			4,802			1,537
Contract maintenance charges		(1	)		(43	)		(0	)		(1	)		(0	)		(691	)		(126	)
Contract owners' benefits		(14	)		(95	)		(2	)		(9	)		-			(7,948	)		(4,813	)
Net transfers (to) from the Company and Subaccounts		212			1,803			8			(156	)		13			(1,588	)		1,232

Increase (decrease) in net assets resulting from Contract transactions		626			7,383			237			187			73			(5,426	)		(2,171	)

Total increase (decrease) in net assets		597			6,600			189			153			71			(19,302	)		(7,918	)

NET ASSETS:
Beginning of period		147			857			110			358			-			100,498			38,782

End of period	$	745		$	7,458		$	299		$	512		$	71		$	81,196		$	30,864

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	American Funds IS Capital Income Builder Class 2			American Funds IS Capital Income Builder Class 4			American Funds IS Capital World Growth And Income Fund 2			American Funds IS Capital World Growth And Income Fund 4			American Funds IS Global Bond 2			American Funds IS Global Growth Class 2			American Funds IS Global Growth Class 4

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	144		$	96		$	99		$	35		$	(1	)	$	(132	)	$	(107	)
Net realized gain (loss) on investments		(4	)		28			1,371			659			5			10,173			1,629
Change in net unrealized appreciation (depreciation) on investments		(704	)		(759	)		(2,769	)		(1,336	)		(45	)		(37,370	)		(6,340	)

Net increase (decrease) in net assets resulting from operations		(564	)		(635	)		(1,298	)		(642	)		(42	)		(27,330	)		(4,818	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		561			393			262			185			434			7,046			1,492
Contract maintenance charges		(30	)		(44	)		(25	)		(5	)		(1	)		(1,165	)		(111	)
Contract owners' benefits		(127	)		(894	)		(234	)		(284	)		(1	)		(5,387	)		(1,274	)
Net transfers (to) from the Company and Subaccounts		425			280			295			(68	)		72			12,068			548

Increase (decrease) in net assets resulting from Contract transactions		829			(265	)		298			(172	)		504			12,562			655

Total increase (decrease) in net assets		265			(899	)		(1,000	)		(814	)		463			(14,767	)		(4,163	)

NET ASSETS:
Beginning of period		6,985			7,377			7,143			3,791			-			105,373			18,614

End of period	$	7,250		$	6,478		$	6,143		$	2,977		$	463		$	90,605		$	14,451

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	American Funds IS Global Small Capitalization Class 2			American Funds IS Global Small Capitalization Class 4			American Funds IS Growth – Income Class 2			American Funds IS Growth – Income Class 4			American Funds IS Growth Class 2			American Funds IS Growth Class 4			American Funds IS High-Income Bond 2

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(51	)	$	(3	)	$	99		$	2		$	(222	)	$	(447	)	$	37
Net realized gain (loss) on investments		2,163			72			1,486			1,417			7,074			5,569			0
Change in net unrealized appreciation (depreciation) on investments		(4,448	)		(153	)		(4,211	)		(4,856	)		(25,234	)		(24,998	)		(56	)

Net increase (decrease) in net assets resulting from operations		(2,335	)		(84	)		(2,625	)		(3,438	)		(18,382	)		(19,876	)		(19	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		870			203			3,689			990			10,325			2,268			402
Contract maintenance charges		(31	)		(0	)		(72	)		(22	)		(283	)		(90	)		(2	)
Contract owners' benefits		(365	)		(14	)		(760	)		(2,300	)		(2,298	)		(7,172	)		-
Net transfers (to) from the Company and Subaccounts		1,107			5			1,955			1,049			6,685			(4,400	)		129

Increase (decrease) in net assets resulting from Contract transactions		1,582			194			4,812			(282	)		14,429			(9,394	)		529

Total increase (decrease) in net assets		(753	)		110			2,187			(3,719	)		(3,954	)		(29,270	)		510

NET ASSETS:
Beginning of period		7,236			283			14,196			18,344			54,975			67,204			25

End of period	$	6,483		$	392		$	16,383		$	14,625		$	51,021		$	37,934		$	535

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	American Funds IS International Class 2			American Funds IS International Class 4			American Funds IS International Growth And Income 2			American Funds IS New World Class 2			American Funds IS New World Class 4			American Funds IS The Bond Fund Of America 2			American Funds IS The Bond Fund Of America 4

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	91		$	3		$	23		$	49		$	0		$	733		$	142
Net realized gain (loss) on investments		1,280			49			180			789			28			229			20
Change in net unrealized appreciation (depreciation) on investments		(3,717	)		(137	)		(179	)		(3,176	)		(109	)		(4,045	)		(1,421	)

Net increase (decrease) in net assets resulting from operations		(2,345	)		(85	)		24			(2,337	)		(81	)		(3,083	)		(1,259	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		611			203			790			742			99			14,940			1,685
Contract maintenance charges		(40	)		(0	)		(2	)		(42	)		(0	)		(193	)		(53	)
Contract owners' benefits		(387	)		(7	)		-			(480	)		(51	)		(1,168	)		(509	)
Net transfers (to) from the Company and Subaccounts		896			5			90			948			8			3,602			471

Increase (decrease) in net assets resulting from Contract transactions		1,079			200			878			1,167			56			17,182			1,594

Total increase (decrease) in net assets		(1,266	)		115			902			(1,170	)		(25	)		14,098			335

NET ASSETS:
Beginning of period		10,508			420			10			9,954			362			18,660			8,143

End of period	$	9,242		$	535		$	913		$	8,784		$	337		$	32,758		$	8,478

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	American Funds IS U.S. Government Securities Fund 2			American Funds IS U.S. Government Securities Fund 4			American Funds IS Washington Mutual Investors Fund 2			American Funds IS Washington Mutual Investors Fund 4			Blackrock 60/40 Target Allocation ETF V.I. Fund			Blackrock Global Allocation V.I. III			Blackrock International V.I. I

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	104		$	99		$	432		$	15		$	43		$	(50	)	$	2
Net realized gain (loss) on investments		(25	)		(130	)		8,643			668			(37	)		91			4
Change in net unrealized appreciation (depreciation) on investments		(508	)		(541	)		(12,730	)		(1,001	)		(190	)		(637	)		(34	)

Net increase (decrease) in net assets resulting from operations		(429	)		(573	)		(3,655	)		(318	)		(184	)		(596	)		(27	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		248			278			4,436			726			1,869			9,942			320
Contract maintenance charges		(17	)		(34	)		(194	)		(20	)		(8	)		(81	)		(1	)
Contract owners' benefits		(240	)		(272	)		(1,867	)		(148	)		(72	)		(85	)		-
Net transfers (to) from the Company and Subaccounts		98			(425	)		(452	)		(496	)		753			2,493			38

Increase (decrease) in net assets resulting from Contract transactions		89			(453	)		1,924			63			2,541			12,268			357

Total increase (decrease) in net assets		(340	)		(1,026	)		(1,731	)		(256	)		2,357			11,672			330

NET ASSETS:
Beginning of period		3,644			5,068			39,893			3,297			629			862			75

End of period	$	3,304		$	4,042		$	38,161		$	3,041		$	2,986		$	12,534		$	405

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Calvert VP SRI Balanced			Clearbridge Variable Dividend Strategy II			Clearbridge Variable Large Cap Growth II			ClearBridge Variable Mid Cap Portfolio Class II			ClearBridge Variable Small Cap Growth II			Columbia VP Balanced 2			Columbia VP Emerging Markets Bond 2

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(4	)	$	1		$	(2	)	$	(303	)	$	(139	)	$	(16	)	$	3
Net realized gain (loss) on investments		129			16			9			7,390			319			(17	)		0
Change in net unrealized appreciation (depreciation) on investments		(377	)		(23	)		(52	)		(19,285	)		(5,945	)		(256	)		(3	)

Net increase (decrease) in net assets resulting from operations		(252	)		(5	)		(45	)		(12,198	)		(5,765	)		(289	)		(0	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		0			3			78			1,047			325			993			97
Contract maintenance charges		(0	)		(1	)		(1	)		(273	)		(114	)		(15	)		(0	)
Contract owners' benefits		(246	)		(19	)		(1	)		(2,992	)		(1,079	)		(6	)		-
Net transfers (to) from the Company and Subaccounts		(18	)		181			(16	)		(27,644	)		(2,039	)		(567	)		9

Increase (decrease) in net assets resulting from Contract transactions		(265	)		164			61			(29,861	)		(2,907	)		406			106

Total increase (decrease) in net assets		(516	)		158			16			(42,059	)		(8,672	)		116			106

NET ASSETS:
Beginning of period		1,595			45			131			66,543			20,778			1,552			-

End of period	$	1,079		$	203		$	147		$	24,485		$	12,106		$	1,668		$	106

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Columbia VP Intermediate Bond 2			Columbia VP Limited Duration Credit 2			Columbia VP Select Mid Cap Value 2			Columbia VP Strategic Income 2			DFA VA Equity Allocation Portfolio Instl			DFA VA Global Bond			DFA VA Global Moderate Allocation Instl

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	15		$	(1	)	$	(3	)	$	49		$	2		$	11		$	6
Net realized gain (loss) on investments		(2	)		(1	)		(2	)		107			3			0			6
Change in net unrealized appreciation (depreciation) on investments		(122	)		(4	)		(13	)		(345	)		(10	)		(60	)		(65	)

Net increase (decrease) in net assets resulting from operations		(109	)		(6	)		(18	)		(190	)		(5	)		(49	)		(53	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		413			154			352			4,447			-			201			188
Contract maintenance charges		(6	)		(0	)		(1	)		(37	)		(0	)		(1	)		(2	)
Contract owners' benefits		(11	)		(21	)		(3	)		(72	)		-			(13	)		-
Net transfers (to) from the Company and Subaccounts		246			115			182			1,337			89			(17	)		(1	)

Increase (decrease) in net assets resulting from Contract transactions		643			248			530			5,675			89			170			185

Total increase (decrease) in net assets		534			242			513			5,485			83			121			132

NET ASSETS:
Beginning of period		357			17			83			389			25			696			369

End of period	$	890		$	259		$	596		$	5,875		$	108		$	817		$	501

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	DFA VA International Small			DFA VA International Value			DFA VA Short-Term Fixed			DFA VA US Large Value			DFA VA US Targeted Value			Fidelity Contrafund Portfolio SC2			Fidelity Equity Income SC2

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	16		$	37		$	8		$	48		$	13		$	(1,411	)	$	32
Net realized gain (loss) on investments		12			11			(0	)		28			95			37,161			254
Change in net unrealized appreciation (depreciation) on investments		(98	)		(49	)		(15	)		(139	)		(136	)		(108,422	)		(675	)

Net increase (decrease) in net assets resulting from operations		(70	)		(2	)		(8	)		(64	)		(28	)		(72,673	)		(389	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		324			595			524			1,095			631			2,490			21
Contract maintenance charges		(1	)		(1	)		(2	)		(2	)		(2	)		(1,456	)		(46	)
Contract owners' benefits		(10	)		(13	)		(13	)		(42	)		(17	)		(16,945	)		(694	)
Net transfers (to) from the Company and Subaccounts		34			(7	)		(45	)		(88	)		(11	)		(123,825	)		(207	)

Increase (decrease) in net assets resulting from Contract transactions		346			574			463			962			601			(139,735	)		(925	)

Total increase (decrease) in net assets		277			572			455			898			573			(212,408	)		(1,314	)

NET ASSETS:
Beginning of period		395			444			445			1,472			703			356,344			6,468

End of period	$	672		$	1,016		$	900		$	2,370		$	1,276		$	143,936		$	5,154

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Fidelity Freedom Fund - 2015 Maturity SC2			Fidelity Freedom Fund - 2020 Maturity SC2			Fidelity Growth Portfolio SC2			Fidelity Index 500 Portfolio SC2			Fidelity Investment Grade Bonds SC2			Fidelity Mid Cap SC2			Fidelity VIP Asset Manager Growth Service 2

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	10		$	24		$	(21	)	$	285		$	2,863		$	(1,156	)	$	1
Net realized gain (loss) on investments		95			237			138			124,353			11,364			24,323			(0	)
Change in net unrealized appreciation (depreciation) on investments		(317	)		(713	)		(1,039	)		(269,193	)		(55,746	)		(62,154	)		(3	)

Net increase (decrease) in net assets resulting from operations		(213	)		(453	)		(922	)		(144,554	)		(41,519	)		(38,988	)		(2	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		1			1			2			10,282			11,879			2,411			10
Contract maintenance charges		(8	)		(12	)		(13	)		(2,814	)		(3,429	)		(1,283	)		(0	)
Contract owners' benefits		(223	)		(33	)		(256	)		(40,930	)		(25,156	)		(15,407	)		-
Net transfers (to) from the Company and Subaccounts		9			8			(98	)		(463,713	)		6,942			(107,694	)		68

Increase (decrease) in net assets resulting from Contract transactions		(221	)		(35	)		(365	)		(497,175	)		(9,764	)		(121,974	)		78

Total increase (decrease) in net assets		(434	)		(489	)		(1,288	)		(641,730	)		(51,283	)		(160,961	)		76

NET ASSETS:
Beginning of period		1,374			2,729			3,652			890,425			297,519			298,885			-

End of period	$	940		$	2,240		$	2,364		$	248,696		$	246,236		$	137,923		$	76

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Fidelity VIP Asset Manager Service 2			Fidelity VIP Balanced Service 2			Fidelity VIP Bond Index Port			Fidelity VIP Energy Service 2			Fidelity VIP Extended Market Index Portfolio			Fidelity VIP Fundsmanager 20% Service 2			Fidelity VIP Fundsmanager 60% Service 2

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	1		$	60		$	4		$	16		$	0		$	13		$	(0	)
Net realized gain (loss) on investments		(1	)		129			0			(37	)		1			38			(1	)
Change in net unrealized appreciation (depreciation) on investments		(12	)		(1,647	)		(27	)		302			(4	)		(135	)		-

Net increase (decrease) in net assets resulting from operations		(12	)		(1,458	)		(23	)		280			(3	)		(84	)		(1	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		26			12,953			379			434			31			251			11
Contract maintenance charges		(1	)		(116	)		(1	)		(1	)		(0	)		(5	)		(0	)
Contract owners' benefits		-			(291	)		(16	)		(19	)		-			(13	)		-
Net transfers (to) from the Company and Subaccounts		26			1,554			126			513			25			304			(10	)

Increase (decrease) in net assets resulting from Contract transactions		50			14,100			488			928			56			537			1

Total increase (decrease) in net assets		38			12,642			466			1,208			53			453			-

NET ASSETS:
Beginning of period		77			4,441			17			294			-			562			-

End of period	$	115		$	17,083		$	483		$	1,502		$	53		$	1,014		$	-

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Fidelity VIP Fundsmanager 85% Service 2			Fidelity VIP Health Care Port Service 2			Fidelity VIP International Index Port			Fidelity VIP Target Volatility Service 2			Fidelity VIP Technology Initial			Fidelity VIP Total Market Index Port			Fidelity VIP Utilities Initial

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	4		$	(4	)	$	3		$	1		$	(1	)	$	11		$	1
Net realized gain (loss) on investments		1			13			3			0			1			(7	)		2
Change in net unrealized appreciation (depreciation) on investments		17			(22	)		(20	)		(13	)		(30	)		(138	)		(1	)

Net increase (decrease) in net assets resulting from operations		22			(13	)		(14	)		(11	)		(29	)		(135	)		2

CONTRACT TRANSACTIONS:
Contract owners' net payments		95			369			144			40			133			276			26
Contract maintenance charges		(0	)		(2	)		(1	)		(1	)		(0	)		(3	)		(0	)
Contract owners' benefits		-			(13	)		-			(1	)		(19	)		(1	)		(1	)
Net transfers (to) from the Company and Subaccounts		431			422			87			0			82			1,286			42

Increase (decrease) in net assets resulting from Contract transactions		525			776			230			39			196			1,558			66

Total increase (decrease) in net assets		547			763			216			28			167			1,423			67

NET ASSETS:
Beginning of period		-			197			-			62			-			-			-

End of period	$	547		$	960		$	216		$	89		$	167		$	1,423		$	67

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Fidelity VIP Value Strategies Service 2			Franklin Dynatech VIP Fund			Franklin Income VIP CL 2			Franklin Multi-Asset Dynamic Multi-Strat VIT			Franklin Mutual Global Discovery VIP CL 2			Franklin Mutual Shares VIP CL 2			Franklin Rising Dividend VIP CL 2

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	3		$	(242	)	$	4,563		$	(150	)	$	17		$	2,067		$	(912	)
Net realized gain (loss) on investments		24			15,446			8,207			833			305			69,095			53,624
Change in net unrealized appreciation (depreciation) on investments		(32	)		(31,126	)		(23,648	)		(3,270	)		(558	)		(114,874	)		(101,291	)

Net increase (decrease) in net assets resulting from operations		(5	)		(15,922	)		(10,878	)		(2,587	)		(237	)		(43,712	)		(48,579	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		522			3,432			2,012			2			43			2,158			9,047
Contract maintenance charges		(1	)		(154	)		(1,235	)		(192	)		(9	)		(4,372	)		(2,233	)
Contract owners' benefits		(33	)		(1,886	)		(15,287	)		(1,214	)		(500	)		(39,663	)		(24,143	)
Net transfers (to) from the Company and Subaccounts		86			(12,659	)		(56,623	)		(15,317	)		(10	)		(152,993	)		(20,248	)

Increase (decrease) in net assets resulting from Contract transactions		574			(11,268	)		(71,134	)		(16,722	)		(476	)		(194,870	)		(37,578	)

Total increase (decrease) in net assets		569			(27,190	)		(82,011	)		(19,309	)		(713	)		(238,582	)		(86,156	)

NET ASSETS:
Beginning of period		-			50,142			185,425			19,309			3,994			593,134			368,754

End of period	$	569		$	22,952		$	103,413		$	-		$	3,281		$	354,552		$	282,597

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Franklin Small Cap Value VIP CL 2			Franklin Small-Mid Cap Growth VIP CL 2			Franklin Strategic Income VIP CL 2			Franklin US Government Securities VIP CL 2			Goldman Sachs Global Trends Allocation Fund SC			Goldman Sachs International Equity Insights			Goldman Sachs International Equity Insights SC

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(68	)	$	(251	)	$	199		$	4,994		$	(90	)	$	388		$	590
Net realized gain (loss) on investments		8,107			6,509			(16	)		(5,535	)		160			(441	)		(33	)
Change in net unrealized appreciation (depreciation) on investments		(12,985	)		(18,235	)		(954	)		(42,521	)		(1,564	)		(3,108	)		(5,649	)

Net increase (decrease) in net assets resulting from operations		(4,946	)		(11,977	)		(772	)		(43,063	)		(1,494	)		(3,161	)		(5,092	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		908			676			451			2,178			139			145			180
Contract maintenance charges		(330	)		(161	)		(16	)		(4,748	)		(100	)		(77	)		(371	)
Contract owners' benefits		(3,085	)		(2,017	)		(370	)		(38,565	)		(674	)		(2,283	)		(3,081	)
Net transfers (to) from the Company and Subaccounts		(8,618	)		(4,046	)		(50	)		(2,236	)		877			379			(402	)

Increase (decrease) in net assets resulting from Contract transactions		(11,125	)		(5,549	)		14			(43,371	)		242			(1,836	)		(3,674	)

Total increase (decrease) in net assets		(16,071	)		(17,525	)		(758	)		(86,434	)		(1,251	)		(4,998	)		(8,766	)

NET ASSETS:
Beginning of period		48,020			38,855			6,665			419,387			7,291			22,272			36,780

End of period	$	31,949		$	21,330		$	5,907		$	332,953		$	6,039		$	17,275		$	28,015

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Goldman Sachs Large Cap Value			Goldman Sachs Large Cap Value Fund SC			Goldman Sachs Mid Cap Value			Goldman Sachs Mid Cap Value SC			Goldman Sachs Small Cap Equity Insights			Goldman Sachs Small Cap Equity Insights SC			Goldman Sachs Strategic Growth

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	51		$	(18	)	$	(17	)	$	(592	)	$	(171	)	$	(77	)	$	(334	)
Net realized gain (loss) on investments		2,922			7,806			764			15,597			(130	)		(26	)		4,112
Change in net unrealized appreciation (depreciation) on investments		(5,797	)		(15,969	)		(1,536	)		(34,582	)		(4,329	)		(2,452	)		(16,451	)

Net increase (decrease) in net assets resulting from operations		(2,824	)		(8,181	)		(789	)		(19,577	)		(4,629	)		(2,555	)		(12,672	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		269			318			13			426			192			38			246
Contract maintenance charges		(47	)		(1,129	)		(8	)		(917	)		(33	)		(144	)		(41	)
Contract owners' benefits		(3,643	)		(8,988	)		(375	)		(8,363	)		(2,174	)		(1,050	)		(2,859	)
Net transfers (to) from the Company and Subaccounts		(753	)		(9,600	)		(411	)		(47,323	)		(24	)		419			489

Increase (decrease) in net assets resulting from Contract transactions		(4,174	)		(19,399	)		(781	)		(56,177	)		(2,039	)		(737	)		(2,165	)

Total increase (decrease) in net assets		(6,997	)		(27,580	)		(1,570	)		(75,755	)		(6,669	)		(3,292	)		(14,838	)

NET ASSETS:
Beginning of period		38,616			107,945			7,163			144,009			23,603			12,807			39,127

End of period	$	31,618		$	80,364		$	5,593		$	68,255		$	16,934		$	9,515		$	24,289

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Goldman Sachs Strategic Growth SC			Goldman Sachs US Equity Insights			Goldman Sachs US Equity Insights SC			Goldman Sachs VIT Core Fixed Income Fund SC			Goldman Sachs VIT Mid Cap Growth Fund SC			Guggenheim Floating Rate Strategies (Series F)			Guggenheim Global Managed Futures Strategy

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(1,026	)	$	(142	)	$	(5	)	$	130		$	(464	)	$	55		$	12
Net realized gain (loss) on investments		28,197			(377	)		(3	)		(277	)		860			(31	)		(6	)
Change in net unrealized appreciation (depreciation) on investments		(74,022	)		(5,938	)		(170	)		(4,830	)		(15,169	)		(117	)		18

Net increase (decrease) in net assets resulting from operations		(46,850	)		(6,457	)		(178	)		(4,976	)		(14,772	)		(93	)		24

CONTRACT TRANSACTIONS:
Contract owners' net payments		976			142			1			632			477			38			7
Contract maintenance charges		(944	)		(14	)		(11	)		(414	)		(430	)		(3	)		(1	)
Contract owners' benefits		(9,111	)		(3,238	)		(37	)		(2,152	)		(4,080	)		(939	)		(33	)
Net transfers (to) from the Company and Subaccounts		(66,410	)		(463	)		(2	)		736			(1,074	)		742			190

Increase (decrease) in net assets resulting from Contract transactions		(75,488	)		(3,572	)		(48	)		(1,197	)		(5,106	)		(162	)		163

Total increase (decrease) in net assets		(122,338	)		(10,030	)		(226	)		(6,174	)		(19,878	)		(255	)		187

NET ASSETS:
Beginning of period		197,980			32,337			872			32,932			57,806			3,669			378

End of period	$	75,642		$	22,307		$	647		$	26,759		$	37,928		$	3,414		$	566

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Guggenheim Long Short Equity			Guggenheim Multi-Hedge Strategies			Invesco V.I. American Franchise I			Invesco V.I. American Franchise II			Invesco V.I. American Value II			Invesco V.I. Balanced Risk Allocation II			Invesco V.I. Capital Appreciation Fund I

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(1	)	$	1		$	(63	)	$	(29	)	$	(378	)	$	3,657		$	(104	)
Net realized gain (loss) on investments		1			8			1,407			746			17,046			1,658			2,579
Change in net unrealized appreciation (depreciation) on investments		(24	)		(40	)		(3,618	)		(1,844	)		(21,896	)		(16,116	)		(5,673	)

Net increase (decrease) in net assets resulting from operations		(24	)		(31	)		(2,275	)		(1,127	)		(5,228	)		(10,802	)		(3,198	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		6			16			25			5			837			76			27
Contract maintenance charges		(0	)		(1	)		(1	)		(10	)		(839	)		(919	)		(2	)
Contract owners' benefits		(32	)		(112	)		(505	)		(236	)		(6,750	)		(7,417	)		(870	)
Net transfers (to) from the Company and Subaccounts		12			34			16			137			(6,279	)		2,752			(49	)

Increase (decrease) in net assets resulting from Contract transactions		(14	)		(63	)		(465	)		(104	)		(13,031	)		(5,508	)		(894	)

Total increase (decrease) in net assets		(38	)		(93	)		(2,740	)		(1,231	)		(18,259	)		(16,309	)		(4,092	)

NET ASSETS:
Beginning of period		168			712			7,392			3,506			93,953			71,963			10,454

End of period	$	130		$	619		$	4,652		$	2,275		$	75,694		$	55,653		$	6,361

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Invesco V.I. Capital Appreciation Fund II			Invesco V.I. Comstock I			Invesco V.I. Comstock II			Invesco V.I. Conservative Balance II			Invesco V.I. Discovery Mid Cap Growth Fund I			Invesco V.I. Discovery Mid Cap Growth Fund II			Invesco V.I. Equity and Income II

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(276	)	$	88		$	171		$	70		$	(49	)	$	(267	)	$	225
Net realized gain (loss) on investments		15,706			1,926			17,984			722			906			8,824			33,934
Change in net unrealized appreciation (depreciation) on investments		(30,462	)		(2,083	)		(22,012	)		(1,432	)		(2,377	)		(20,080	)		(52,130	)

Net increase (decrease) in net assets resulting from operations		(15,032	)		(69	)		(3,857	)		(641	)		(1,520	)		(11,523	)		(17,972	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		240			204			1,815			9,308			30			399			1,867
Contract maintenance charges		(277	)		(5	)		(1,253	)		(78	)		(1	)		(216	)		(1,458	)
Contract owners' benefits		(3,015	)		(2,278	)		(14,747	)		(87	)		(421	)		(1,962	)		(16,381	)
Net transfers (to) from the Company and Subaccounts		(30,548	)		(836	)		(14,037	)		2,317			122			(4,064	)		(75,297	)

Increase (decrease) in net assets resulting from Contract transactions		(33,600	)		(2,916	)		(28,223	)		11,460			(270	)		(5,843	)		(91,269	)

Total increase (decrease) in net assets		(48,632	)		(2,985	)		(32,081	)		10,819			(1,790	)		(17,366	)		(109,241	)

NET ASSETS:
Beginning of period		71,762			25,467			174,716			1,129			4,884			40,110			239,777

End of period	$	23,130		$	22,482		$	142,635		$	11,948		$	3,094		$	22,744		$	130,536

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Invesco V.I. Global Fund I			Invesco V.I. Global Fund II			Invesco V.I. Global Real Estate II			Invesco V.I. Global Strategic Income Fund I			Invesco V.I. Global Strategic Income Fund II			Invesco V.I. Government Securities II			Invesco V.I. Growth & Income I

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(90	)	$	(1,970	)	$	19		$	(73	)	$	(2,596	)	$	1,050		$	101
Net realized gain (loss) on investments		1,190			50,665			300			(170	)		(4,169	)		(1,438	)		3,035
Change in net unrealized appreciation (depreciation) on investments		(4,336	)		(130,494	)		(3,147	)		(548	)		(28,256	)		(16,424	)		(5,128	)

Net increase (decrease) in net assets resulting from operations		(3,236	)		(81,799	)		(2,827	)		(790	)		(35,021	)		(16,812	)		(1,992	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		16			1,526			138			93			1,145			1,139			76
Contract maintenance charges		(1	)		(1,736	)		(32	)		(2	)		(3,156	)		(1,855	)		(5	)
Contract owners' benefits		(546	)		(18,101	)		(681	)		(647	)		(26,405	)		(11,490	)		(2,174	)
Net transfers (to) from the Company and Subaccounts		(17	)		(53,462	)		(9,127	)		(166	)		6,229			1,087			(453	)

Increase (decrease) in net assets resulting from Contract transactions		(549	)		(71,773	)		(9,703	)		(723	)		(22,187	)		(11,119	)		(2,557	)

Total increase (decrease) in net assets		(3,784	)		(153,572	)		(12,530	)		(1,513	)		(57,208	)		(27,931	)		(4,549	)

NET ASSETS:
Beginning of period		10,150			315,560			15,180			6,476			280,436			150,617			29,154

End of period	$	6,366		$	161,988		$	2,650		$	4,963		$	223,228		$	122,686		$	24,605

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Invesco V.I. Growth & Income II			Invesco V.I. EQV International Equity Fund II			Invesco V.I. Main Street Fund I			Invesco V.I. Main Street Fund II			Invesco V.I. Main Street Small Cap Fund II			Invesco V.I. Small Cap Equity II			Invesco V.I. U.S. Government Money Portfolio I

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(663	)	$	126		$	11		$	137		$	(1	)	$	(107	)	$	6,837
Net realized gain (loss) on investments		91,595			2,487			2,762			36,739			75			2,841			-
Change in net unrealized appreciation (depreciation) on investments		(138,915	)		(9,667	)		(4,651	)		(61,880	)		(106	)		(6,236	)		-

Net increase (decrease) in net assets resulting from operations		(47,983	)		(7,055	)		(1,878	)		(25,003	)		(33	)		(3,502	)		6,837

CONTRACT TRANSACTIONS:
Contract owners' net payments		2,085			331			94			403			435			339			4,770
Contract maintenance charges		(4,158	)		(110	)		(2	)		(1,267	)		(2	)		(42	)		(23,919	)
Contract owners' benefits		(39,761	)		(3,433	)		(854	)		(6,743	)		(6	)		(1,338	)		(253,374	)
Net transfers (to) from the Company and Subaccounts		(183,610	)		(5,063	)		(82	)		(13,896	)		176			(2,700	)		1,596,374

Increase (decrease) in net assets resulting from Contract transactions		(225,444	)		(8,274	)		(843	)		(21,504	)		604			(3,740	)		1,323,851

Total increase (decrease) in net assets		(273,427	)		(15,329	)		(2,721	)		(46,507	)		571			(7,243	)		1,330,688

NET ASSETS:
Beginning of period		604,214			42,582			9,111			128,947			96			18,390			421,721

End of period	$	330,787		$	27,253		$	6,390		$	82,440		$	667		$	11,147		$	1,752,409

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Janus Henderson Balanced Service Class			Janus Henderson Forty - Service Class			Janus Henderson Global Technology - Service Class			Janus Henderson Overseas Portfolio - Service Class			Lord Abbett Bond Debenture VC			Lord Abbett Dividend Growth Fund			Lord Abbett Growth & Income VC

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	2		$	(0	)	$	(0	)	$	0		$	16,988		$	(91	)	$	112
Net realized gain (loss) on investments		0			(0	)		(0	)		(1	)		(3,703	)		14,753			5,020
Change in net unrealized appreciation (depreciation) on investments		(5	)		(1	)		(1	)		2			(92,847	)		(34,428	)		(12,484	)

Net increase (decrease) in net assets resulting from operations		(3	)		(2	)		(1	)		2			(79,562	)		(19,766	)		(7,352	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		342			40			40			37			14,617			1,550			382
Contract maintenance charges		(1	)		(0	)		(0	)		(0	)		(6,608	)		(1,081	)		(337	)
Contract owners' benefits		(6	)		-			-			-			(50,679	)		(7,976	)		(5,868	)
Net transfers (to) from the Company and Subaccounts		433			25			(3	)		(3	)		17,040			(15,248	)		(2,453	)

Increase (decrease) in net assets resulting from Contract transactions		768			64			37			34			(25,631	)		(22,755	)		(8,276	)

Total increase (decrease) in net assets		765			63			35			36			(105,193	)		(42,521	)		(15,628	)

NET ASSETS:
Beginning of period		-			-			-			-			583,809			135,244			72,039

End of period	$	765		$	63		$	35		$	36		$	478,616		$	92,723		$	56,411

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Lord Abbett Growth Opportunities VC			Lord Abbett Mid Cap Stock VC			Lord Abbett Series Fundamental Equity VC			Lord Abbett Series Short Duration Income VC			MFS Growth Series IC			MFS Growth Series SC			MFS Investors Trust IC

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(272	)	$	(86	)	$	(216	)	$	50		$	(77	)	$	(424	)	$	(40	)
Net realized gain (loss) on investments		2,377			3,266			23,868			(0	)		598			5,121			1,170
Change in net unrealized appreciation (depreciation) on investments		(16,199	)		(9,948	)		(47,805	)		(111	)		(2,994	)		(22,395	)		(2,370	)

Net increase (decrease) in net assets resulting from operations		(14,094	)		(6,768	)		(24,153	)		(61	)		(2,473	)		(17,697	)		(1,239	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		517			304			584			1,125			74			183			32
Contract maintenance charges		(221	)		(251	)		(1,227	)		(6	)		(2	)		(279	)		(2	)
Contract owners' benefits		(2,853	)		(4,239	)		(11,856	)		(61	)		(525	)		(4,079	)		(918	)
Net transfers (to) from the Company and Subaccounts		(8,702	)		(5,545	)		(78,211	)		947			(48	)		4,189			(182	)

Increase (decrease) in net assets resulting from Contract transactions		(11,259	)		(9,732	)		(90,710	)		2,005			(500	)		15			(1,069	)

Total increase (decrease) in net assets		(25,352	)		(16,500	)		(114,863	)		1,944			(2,973	)		(17,682	)		(2,308	)

NET ASSETS:
Beginning of period		50,134			57,775			198,617			235			7,796			54,782			7,448

End of period	$	24,782		$	41,275		$	83,754		$	2,179		$	4,823		$	37,099		$	5,141

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	MFS Investors Trust SC			MFS New Discovery IC			MFS New Discovery SC			MFS Research IC			MFS Research SC			MFS Total Return IC			MFS Total Return SC

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(335	)	$	(31	)	$	(537	)	$	(42	)	$	(27	)	$	74		$	200
Net realized gain (loss) on investments		8,069			599			17,899			760			526			1,670			4,457
Change in net unrealized appreciation (depreciation) on investments		(17,378	)		(1,485	)		(36,069	)		(1,816	)		(1,211	)		(3,776	)		(10,219	)

Net increase (decrease) in net assets resulting from operations		(9,644	)		(916	)		(18,707	)		(1,098	)		(712	)		(2,032	)		(5,563	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		391			20			189			26			22			188			413
Contract maintenance charges		(396	)		(1	)		(540	)		(2	)		(22	)		(4	)		(298	)
Contract owners' benefits		(5,284	)		(304	)		(4,874	)		(764	)		(353	)		(2,154	)		(5,116	)
Net transfers (to) from the Company and Subaccounts		(588	)		16			11,196			(55	)		(33	)		(54	)		(1,181	)

Increase (decrease) in net assets resulting from Contract transactions		(5,878	)		(268	)		5,972			(794	)		(386	)		(2,024	)		(6,182	)

Total increase (decrease) in net assets		(15,522	)		(1,185	)		(12,736	)		(1,893	)		(1,098	)		(4,056	)		(11,744	)

NET ASSETS:
Beginning of period		56,861			3,043			57,785			6,260			4,109			19,285			53,045

End of period	$	41,340		$	1,858		$	45,049		$	4,368		$	3,011		$	15,229		$	41,300

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

100

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	MFS Utilities IC			MFS Utilities SC			MFS VIT II Emerging Markets Equity SC			MFS VIT II International Value SC			MFS VIT II MA Investors Growth Stock IC			MFS VIT II MA Investors Growth Stock SC			MFS VIT Total Return Bond SC

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	22		$	218		$	8		$	(71	)	$	(21	)	$	(285	)	$	4,850
Net realized gain (loss) on investments		123			2,086			13			1,016			205			4,480			1,456
Change in net unrealized appreciation (depreciation) on investments		(156	)		(2,494	)		(84	)		(6,447	)		(617	)		(12,069	)		(63,694	)

Net increase (decrease) in net assets resulting from operations		(11	)		(190	)		(63	)		(5,501	)		(433	)		(7,874	)		(57,387	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		23			45			10			144			19			131			1,667
Contract maintenance charges		(0	)		(212	)		(1	)		(27	)		(0	)		(400	)		(3,957	)
Contract owners' benefits		(165	)		(2,500	)		(33	)		(2,442	)		(215	)		(3,145	)		(35,109	)
Net transfers (to) from the Company and Subaccounts		31			(2,526	)		26			1,485			10			182			7,496

Increase (decrease) in net assets resulting from Contract transactions		(112	)		(5,193	)		2			(840	)		(186	)		(3,231	)		(29,902	)

Total increase (decrease) in net assets		(123	)		(5,383	)		(61	)		(6,341	)		(620	)		(11,105	)		(87,289	)

NET ASSETS:
Beginning of period		1,884			25,021			299			22,849			2,148			40,451			391,163

End of period	$	1,761		$	19,638		$	238		$	16,508		$	1,528		$	29,346		$	303,873

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

101

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	MFS VIT Value SC			Morgan Stanley VIF Core Plus Fixed Income Portfolio			Morgan Stanley VIF Global Real Estate II			Morgan Stanley VIF Global Strategy Portfolio			PIMCO Income Advisor			PIMCO VIT All Asset Advisor			PIMCO VIT Commodity Real Return Strategy Advantage

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	99		$	(0	)	$	173		$	-		$	13		$	180		$	-
Net realized gain (loss) on investments		18,811			(0	)		325			-			(2	)		520			-
Change in net unrealized appreciation (depreciation) on investments		(33,122	)		(1	)		(2,366	)		-			(49	)		(1,232	)		-

Net increase (decrease) in net assets resulting from operations		(14,212	)		(1	)		(1,868	)		-			(38	)		(531	)		-

CONTRACT TRANSACTIONS:
Contract owners' net payments		1,069			40			28			-			348			19			6
Contract maintenance charges		(1,498	)		-			(75	)		(0	)		(1	)		(25	)		(0	)
Contract owners' benefits		(17,493	)		-			(606	)		-			(18	)		(538	)		-
Net transfers (to) from the Company and Subaccounts		(13,862	)		-			141			17			(39	)		(4,269	)		-

Increase (decrease) in net assets resulting from Contract transactions		(31,784	)		40			(511	)		17			289			(4,812	)		6

Total increase (decrease) in net assets		(45,996	)		39			(2,379	)		17			252			(5,343	)		6

NET ASSETS:
Beginning of period		196,057			-			7,402			-			362			7,526			-

End of period	$	150,061		$	39		$	5,023		$	17		$	613		$	2,183		$	6

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

102

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	PIMCO VIT Global Diversified Allocation Portfolio			PIMCO VIT High Yield Advance			PIMCO VIT Long-Term US Government Advisor			PIMCO VIT Low Duration Advisor			PIMCO VIT Real Return Advisor			PIMCO VIT Short-Term Advisor			PIMCO VIT Total Return Advisor

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	177		$	5		$	197		$	751		$	15,233		$	308		$	9,516
Net realized gain (loss) on investments		1,689			(11	)		(341	)		(869	)		(1,525	)		(14	)		(6,991	)
Change in net unrealized appreciation (depreciation) on investments		(3,014	)		(14	)		(8,604	)		(9,750	)		(50,767	)		(1,146	)		(117,664	)

Net increase (decrease) in net assets resulting from operations		(1,148	)		(20	)		(8,748	)		(9,869	)		(37,059	)		(852	)		(115,139	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		1			139			324			1,465			1,530			9,355			7,274
Contract maintenance charges		(78	)		(1	)		(303	)		(1,898	)		(3,548	)		(832	)		(8,616	)
Contract owners' benefits		(891	)		(1	)		(2,217	)		(11,910	)		(26,377	)		(7,680	)		(65,796	)
Net transfers (to) from the Company and Subaccounts		377			(59	)		1,220			1,261			304			2,760			21,777

Increase (decrease) in net assets resulting from Contract transactions		(591	)		79			(975	)		(11,082	)		(28,091	)		3,603			(45,360	)

Total increase (decrease) in net assets		(1,739	)		59			(9,723	)		(20,951	)		(65,150	)		2,751			(160,499	)

NET ASSETS:
Beginning of period		6,630			127			30,193			147,419			300,617			66,445			767,115

End of period	$	4,891		$	186		$	20,470		$	126,469		$	235,467		$	69,195		$	606,616

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

103

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Protective Life Dynamic Allocation Series – Conservative			Protective Life Dynamic Allocation Series – Growth			Protective Life Dynamic Allocation Series – Moderate			Royce Capital Fund Micro-Cap SC			Royce Capital Fund Small-Cap SC			Rydex Commodities Strategy			Rydex Inverse Government Long Bond

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	15		$	30		$	1,367		$	(107	)	$	(966	)	$	0		$	(0	)
Net realized gain (loss) on investments		1,101			574			5,630			5,076			11,247			2			1
Change in net unrealized appreciation (depreciation) on investments		(9,293	)		(13,406	)		(112,430	)		(8,439	)		(32,845	)		0			3

Net increase (decrease) in net assets resulting from operations		(8,176	)		(12,801	)		(105,434	)		(3,470	)		(22,565	)		3			3

CONTRACT TRANSACTIONS:
Contract owners' net payments		3,894			282			143,224			62			535			-			-
Contract maintenance charges		(595	)		(208	)		(10,028	)		(93	)		(1,081	)		(0	)		(0	)
Contract owners' benefits		(5,799	)		(7,596	)		(23,660	)		(1,342	)		(10,025	)		(0	)		-
Net transfers (to) from the Company and Subaccounts		4,201			3,697			56,434			(6,920	)		(13,133	)		(3	)		(3	)

Increase (decrease) in net assets resulting from Contract transactions		1,701			(3,825	)		165,969			(8,293	)		(23,704	)		(3	)		(3	)

Total increase (decrease) in net assets		(6,475	)		(16,626	)		60,536			(11,763	)		(46,269	)		(0	)		0

NET ASSETS:
Beginning of period		46,054			64,736			524,872			19,767			184,073			10			8

End of period	$	39,579		$	48,110		$	585,407		$	8,004		$	137,805		$	9		$	8

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

104

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	T. Rowe Price All-Cap Opportunities Portfolio			T. Rowe Price Blue Chip Growth Portfolio II			T. Rowe Price Health Sciences Portfolio II			T. Rowe Price Moderate Allocation			Templeton Developing Markets VIP CL 2			Templeton Foreign VIP CL 2			Templeton Global Bond VIP Fund CL 2

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(3	)	$	(37	)	$	(15	)	$	3		$	44		$	1,233		$	(2,377	)
Net realized gain (loss) on investments		32			151			(26	)		7			168			(319	)		(4,779	)
Change in net unrealized appreciation (depreciation) on investments		(91	)		(1,729	)		(71	)		(22	)		(899	)		(7,067	)		(6,851	)

Net increase (decrease) in net assets resulting from operations		(62	)		(1,616	)		(112	)		(13	)		(687	)		(6,153	)		(14,007	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		366			3,374			1,180			284			304			290			1,015
Contract maintenance charges		(2	)		(22	)		(10	)		(1	)		(7	)		(687	)		(2,852	)
Contract owners' benefits		(10	)		(172	)		(58	)		(0	)		(356	)		(6,502	)		(23,286	)
Net transfers (to) from the Company and Subaccounts		111			823			383			80			286			9,870			(5,376	)

Increase (decrease) in net assets resulting from Contract transactions		465			4,003			1,494			364			228			2,971			(30,499	)

Total increase (decrease) in net assets		403			2,387			1,382			351			(460	)		(3,182	)		(44,505	)

NET ASSETS:
Beginning of period		100			2,730			1,017			-			2,857			71,083			245,408

End of period	$	503		$	5,117		$	2,400		$	351		$	2,397		$	67,901		$	200,903

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

105

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Templeton Growth VIP CL 2			VanEck Global Hard Asset			Vanguard VIF Balanced			Vanguard VIF Capital Growth			Vanguard VIF Conservative Allocation			Vanguard VIF Diversified Val			Vanguard VIF Equity Income

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(722	)	$	(0	)	$	12		$	2		$	5		$	(0	)	$	16
Net realized gain (loss) on investments		(638	)		13			69			25			13			8			75
Change in net unrealized appreciation (depreciation) on investments		(9,868	)		5			(204	)		(68	)		(131	)		(14	)		(96	)

Net increase (decrease) in net assets resulting from operations		(11,229	)		18			(123	)		(42	)		(113	)		(6	)		(6	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		484			-			114			134			970			56			142
Contract maintenance charges		(765	)		(0	)		(5	)		(2	)		(2	)		(0	)		(3	)
Contract owners' benefits		(7,885	)		-			(6	)		-			(1	)		-			(2	)
Net transfers (to) from the Company and Subaccounts		2,616			(33	)		(4	)		(60	)		1			(63	)		(23	)

Increase (decrease) in net assets resulting from Contract transactions		(5,551	)		(33	)		99			72			968			(7	)		114

Total increase (decrease) in net assets		(16,779	)		(15	)		(24	)		30			855			(13	)		108

NET ASSETS:
Beginning of period		91,730			250			832			219			343			80			646

End of period	$	74,950		$	236		$	808		$	249		$	1,198		$	67		$	753

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

106

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Vanguard VIF Equity Index			Vanguard VIF Global Bond Index			Vanguard VIF Growth			Vanguard VIF High Yield Bond			Vanguard VIF International			Vanguard VIF Mid-Cap Index			Vanguard VIF Moderate Allocation

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	8		$	3		$	(3	)	$	7		$	4		$	6		$	13
Net realized gain (loss) on investments		37			1			255			1			91			83			27
Change in net unrealized appreciation (depreciation) on investments		(221	)		(22	)		(591	)		(21	)		(278	)		(256	)		(160	)

Net increase (decrease) in net assets resulting from operations		(176	)		(18	)		(338	)		(13	)		(183	)		(167	)		(120	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		646			98			393			32			226			237			117
Contract maintenance charges		(1	)		(0	)		(2	)		(1	)		(1	)		(2	)		(3	)
Contract owners' benefits		(29	)		(1	)		(13	)		(1	)		(10	)		(11	)		(1	)
Net transfers (to) from the Company and Subaccounts		(22	)		(12	)		128			17			122			(27	)		4

Increase (decrease) in net assets resulting from Contract transactions		593			85			506			46			336			196			116

Total increase (decrease) in net assets		417			66			169			33			153			29			(4	)

NET ASSETS:
Beginning of period		944			148			768			139			548			805			664

End of period	$	1,362		$	215		$	936		$	173		$	701		$	834		$	660

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

107

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022

	SUBACCOUNTS

($ in thousands)	Vanguard VIF Money Market			Vanguard VIF Real Estate Index			Vanguard VIF Short Term Investment Grade			Vanguard VIF Total Bond Market Index			Vanguard VIF Total International Stock Market Index			Vanguard VIF Total Stock Mkt Index			Western Asset Core Plus VIT II

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	20		$	4		$	17		$	18		$	16		$	11		$	32
Net realized gain (loss) on investments		0			12			9			8			19			82			(7	)
Change in net unrealized appreciation (depreciation) on investments		-			(108	)		(110	)		(199	)		(113	)		(367	)		(561	)

Net increase (decrease) in net assets resulting from operations		20			(91	)		(83	)		(172	)		(78	)		(274	)		(536	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		1,602			105			410			784			675			1,028			2,023
Contract maintenance charges		(4	)		(0	)		(2	)		(3	)		(2	)		(4	)		(35	)
Contract owners' benefits		(114	)		(7	)		(107	)		(39	)		(0	)		(45	)		(253	)
Net transfers (to) from the Company and Subaccounts		41			38			(68	)		(5	)		10			(10	)		(15	)

Increase (decrease) in net assets resulting from Contract transactions		1,526			135			232			737			683			969			1,719

Total increase (decrease) in net assets		1,545			44			149			565			605			694			1,184

NET ASSETS:
Beginning of period		325			287			1,430			1,136			546			1,179			2,287

End of period	$	1,870		$	331		$	1,579		$	1,701		$	1,151		$	1,873		$	3,471

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

108

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	AB VPS Growth And Income B			AB VPS Large Cap Growth B			AB VPS Small Cap Growth B			AB VPS Small/Mid Cap Value B		American Funds IS Asset Allocation Class 2			American Funds IS Asset Allocation Class 4			American Funds IS Capital Income Builder Class 2

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	-		$	(2	)	$	-		$	-	$	599		$	136		$	114
Net realized gain (loss) on investments		-			24			10			-		5,146			1,022			1
Change in net unrealized appreciation (depreciation) on investments		6			27			(11	)		9		6,323			2,617			545

Net increase (decrease) in net assets resulting from operations		6			49			(1	)		8		12,068			3,776			660

CONTRACT TRANSACTIONS:
Contract owners' net payments		23			388			102			32		10,242			2,453			2,270
Contract maintenance fees		-			(1	)		-			-		(713	)		(109	)		(17	)
Contract owners' benefits		(1	)		(5	)		(5	)		-		(7,435	)		(2,060	)		(121	)
Net transfers (to) from the Company and Subaccounts		118			426			14			318		672			9,659			635

Increase (decrease) in net assets resulting from Contract transactions		141			809			111			350		2,766			9,943			2,766

Total increase (decrease) in net assets		147			857			110			358		14,834			13,719			3,426

NET ASSETS:
Beginning of period		-			-			-			-		85,665			25,063			3,559

End of period	$	147		$	857		$	110		$	358	$	100,498		$	38,782		$	6,985

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

109

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	American Funds IS Capital Income Builder Class 4			American Funds IS Capital World Growth And Income Fund 2			American Funds IS Capital World Growth And Income Fund 4			American Funds IS Global Growth Class 2			American Funds IS Global Growth Class 4			American Funds IS Global Small Capitalization Class 2			American Funds IS Global Small Capitalization Class 4

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	94		$	61		$	18		$	(516	)	$	(169	)	$	(49	)	$	(4	)
Net realized gain (loss) on investments		8			153			74			7,924			1,019			205			36
Change in net unrealized appreciation (depreciation) on investments		728			502			287			5,895			1,509			67			(12	)

Net increase (decrease) in net assets resulting from operations		830			716			379			13,304			2,359			223			19

CONTRACT TRANSACTIONS:
Contract owners' net payments		432			2,175			311			16,181			1,853			2,412			44
Contract maintenance fees		(35	)		(18	)		(4	)		(1,082	)		(110	)		(22	)		-
Contract owners' benefits		(397	)		(87	)		(193	)		(4,649	)		(959	)		(176	)		(58	)
Net transfers (to) from the Company and Subaccounts		668			328			779			(2,586	)		(171	)		389			(36	)

Increase (decrease) in net assets resulting from Contract transactions		668			2,398			893			7,864			613			2,603			(50	)

Total increase (decrease) in net assets		1,498			3,114			1,271			21,169			2,972			2,827			(31	)

NET ASSETS:
Beginning of period		5,878			4,029			2,519			84,204			15,643			4,409			314

End of period	$	7,377		$	7,143		$	3,791		$	105,373		$	18,614		$	7,236		$	283

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

110

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	American Funds IS Growth – Income Class 2			American Funds IS Growth – Income Class 4			American Funds IS Growth Class 2			American Funds IS Growth Class 4			American Funds IS High-Income Bond 2		American Funds IS International Class 2			American Funds IS International Class 4

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	56		$	(7	)	$	(244	)	$	(584	)	$	-	$	186		$	5
Net realized gain (loss) on investments		132			173			5,699			8,362			-		69			1
Change in net unrealized appreciation (depreciation) on investments		1,528			3,021			2,249			2,907			-		(548	)		(20	)

Net increase (decrease) in net assets resulting from operations		1,715			3,187			7,705			10,686			-		(293	)		(14	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		7,479			1,774			18,692			2,912			25		3,078			47
Contract maintenance fees		(31	)		(16	)		(182	)		(82	)		-		(30	)		-
Contract owners' benefits		(128	)		(794	)		(975	)		(3,891	)		-		(224	)		(8	)
Net transfers (to) from the Company and Subaccounts		1,255			782			2,047			15,668			-		766			2

Increase (decrease) in net assets resulting from Contract transactions		8,575			1,746			19,583			14,606			25		3,590			42

Total increase (decrease) in net assets		10,291			4,934			27,287			25,292			25		3,297			27

NET ASSETS:
Beginning of period		3,905			13,411			27,688			41,912			-		7,211			392

End of period	$	14,196		$	18,344		$	54,975		$	67,204		$	25	$	10,508		$	420

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

111

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	American Funds IS International Growth And Income 2		American Funds IS New World Class 2			American Funds IS New World Class 4			American Funds IS The Bond Fund Of America 2			American Funds IS The Bond Fund Of America 4			American Funds IS U.S. Government Securities Fund 2			American Funds IS U.S. Government Securities Fund 4

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	-	$	12		$	(2	)	$	141		$	17		$	21		$	(11	)
Net realized gain (loss) on investments		-		305			22			463			269			284			362
Change in net unrealized appreciation (depreciation) on investments		-		(125	)		(7	)		(650	)		(397	)		(331	)		(504	)

Net increase (decrease) in net assets resulting from operations		-		192			13			(46	)		(110	)		(26	)		(153	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		10		3,389			74			9,524			1,836			1,709			732
Contract maintenance fees		-		(30	)		-			(45	)		(32	)		(13	)		(29	)
Contract owners' benefits		-		(269	)		(13	)		(393	)		(472	)		(176	)		(644	)
Net transfers (to) from the Company and Subaccounts		-		740			(77	)		3,306			1,302			305			(2,282	)

Increase (decrease) in net assets resulting from Contract transactions		10		3,829			(17	)		12,392			2,634			1,825			(2,223	)

Total increase (decrease) in net assets		10		4,021			(4	)		12,346			2,524			1,798			(2,376	)

NET ASSETS:
Beginning of period		-		5,933			366			6,314			5,619			1,846			7,444

End of period	$	10	$	9,954		$	362		$	18,660		$	8,143		$	3,644		$	5,068

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

112

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	American Funds IS Washington Mutual Investors Fund 2			American Funds IS Washington Mutual Investors Fund 4			Blackrock 60/40 Target Allocation ETF V.I. Fund			Blackrock Global Allocation V.I. III			Blackrock International V.I. I		Calvert VP SRI Balanced			Clearbridge Variable Dividend Strategy II

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	244		$	-		$	8		$	1		$	-	$	(3	)	$	-
Net realized gain (loss) on investments		264			7			44			122			-		67			3
Change in net unrealized appreciation (depreciation) on investments		6,613			649			(41	)		(120	)		-		127			1

Net increase (decrease) in net assets resulting from operations		7,121			657			12			3			-		191			4

CONTRACT TRANSACTIONS:
Contract owners' net payments		10,460			626			370			694			75		103			37
Contract maintenance fees		(145	)		(17	)		-			(1	)		-		(1	)		-
Contract owners' benefits		(806	)		(136	)		(4	)		(1	)		-		(193	)		-
Net transfers (to) from the Company and Subaccounts		1,338			(274	)		252			167			-		6			4

Increase (decrease) in net assets resulting from Contract transactions		10,847			199			617			859			75		(84	)		41

Total increase (decrease) in net assets		17,968			856			629			862			75		107			45

NET ASSETS:
Beginning of period		21,924			2,441			-			-			-		1,488			-

End of period	$	39,893		$	3,297		$	629		$	862		$	75	$	1,595		$	45

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

113

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	Clearbridge Variable Large Cap Growth II			ClearBridge Variable Mid Cap Portfolio Class II			ClearBridge Variable Small Cap Growth II			Columbia VP Balanced 2			Columbia VP Intermediate Bond 2			Columbia VP Limited Duration Credit 2		Columbia VP Select Mid Cap Value 2

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(1	)	$	(710	)	$	(319	)	$	(6	)	$	2		$	-	$	-
Net realized gain (loss) on investments		8			12,115			5,801			-			7			-		-
Change in net unrealized appreciation (depreciation) on investments		4			4,143			(2,792	)		36			(11	)		-		6

Net increase (decrease) in net assets resulting from operations		11			15,547			2,691			30			(3	)		-		6

CONTRACT TRANSACTIONS:
Contract owners' net payments		96			2,344			1,906			886			170			2		77
Contract maintenance fees		-			(727	)		(261	)		(3	)		-			-		-
Contract owners' benefits		-			(6,352	)		(2,237	)		(7	)		(1	)		-		-
Net transfers (to) from the Company and Subaccounts		24			(7,232	)		(8,133	)		646			191			16		-

Increase (decrease) in net assets resulting from Contract transactions		120			(11,968	)		(8,725	)		1,522			360			18		77

Total increase (decrease) in net assets		131			3,580			(6,035	)		1,552			357			17		83

NET ASSETS:
Beginning of period		-			62,964			26,813			-			-			-		-

End of period	$	131		$	66,543		$	20,778		$	1,552		$	357		$	17	$	83

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

114

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	Columbia VP Strategic Income 2			DFA VA Equity Allocation Portfolio Instl		DFA VA Global Bond			DFA VA Global Moderate Allocation Instl			DFA VA International Small			DFA VA International Value			DFA VA Short-Term Fixed

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	1		$	-	$	4		$	5		$	9		$	16		$	-
Net realized gain (loss) on investments		-			1		-			12			26			-			-
Change in net unrealized appreciation (depreciation) on investments		(3	)		-		(11	)		(3	)		(28	)		(6	)		(1	)

Net increase (decrease) in net assets resulting from operations		(3	)		2		(6	)		14			8			10			(1	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		211			23		698			357			386			431			423
Contract maintenance fees		-			-		-			(1	)		-			-			-
Contract owners' benefits		(1	)		-		-			-			(2	)		(2	)		-
Net transfers (to) from the Company and Subaccounts		182			-		5			-			1			-			5

Increase (decrease) in net assets resulting from Contract transactions		392			23		702			355			386			430			428

Total increase (decrease) in net assets		389			25		696			369			393			440			426

NET ASSETS:
Beginning of period		-			-		-			-			2			4			18

End of period	$	389		$	25	$	696		$	369		$	395		$	444		$	445

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

115

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	DFA VA US Large Value			DFA VA US Targeted Value			Fidelity Contrafund Portfolio SC2			Fidelity Equity Income SC2			Fidelity Freedom Fund - 2015 Maturity SC2			Fidelity Freedom Fund - 2020 Maturity SC2			Fidelity Growth Portfolio SC2

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	22		$	8		$	(3,548	)	$	36		$	(3	)	$	1		$	(38	)
Net realized gain (loss) on investments		-			46			59,909			1,034			69			321			848
Change in net unrealized appreciation (depreciation) on investments		69			(6	)		23,303			300			16			(120	)		(127	)

Net increase (decrease) in net assets resulting from operations		90			48			79,663			1,369			83			202			683

CONTRACT TRANSACTIONS:
Contract owners' net payments		1,383			674			12,097			129			1			1			37
Contract maintenance fees		-			-			(3,226	)		(49	)		(8	)		(13	)		(15	)
Contract owners' benefits		(4	)		(4	)		(32,380	)		(1,066	)		(63	)		(180	)		(240	)
Net transfers (to) from the Company and Subaccounts		(16	)		(15	)		(19,577	)		(264	)		281			(125	)		(74	)

Increase (decrease) in net assets resulting from Contract transactions		1,364			655			(43,086	)		(1,251	)		211			(317	)		(291	)

Total increase (decrease) in net assets		1,454			703			36,577			118			293			(115	)		392

NET ASSETS:
Beginning of period		18			-			319,766			6,349			1,081			2,844			3,260

End of period	$	1,472		$	703		$	356,344		$	6,468		$	1,374		$	2,729		$	3,652

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

116

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	Fidelity Index 500 Portfolio SC2			Fidelity Investment Grade Bonds SC2			Fidelity Mid Cap SC2			Fidelity VIP Asset Manager Service 2			Fidelity VIP Balanced Service 2			Fidelity VIP Bond Index Port		Fidelity VIP Energy Service 2

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	112		$	2,377		$	(2,151	)	$	1		$	5		$	-	$	3
Net realized gain (loss) on investments		33,122			8,043			66,395			-			63			-		2
Change in net unrealized appreciation (depreciation) on investments		162,273			(15,622	)		1,492			1			57			-		15

Net increase (decrease) in net assets resulting from operations		195,507			(5,201	)		65,736			2			124			-		19

CONTRACT TRANSACTIONS:
Contract owners' net payments		33,916			17,375			4,103			3			2,603			17		131
Contract maintenance fees		(3,681	)		(3,234	)		(3,023	)		-			(5	)		-		-
Contract owners' benefits		(63,167	)		(23,678	)		(31,297	)		(1	)		(17	)		-		(4	)
Net transfers (to) from the Company and Subaccounts		(17,604	)		40,134			(36,843	)		73			1,736			-		148

Increase (decrease) in net assets resulting from Contract transactions		(50,536	)		30,597			(67,060	)		76			4,317			17		275

Total increase (decrease) in net assets		144,971			25,396			(1,324	)		77			4,441			17		294

NET ASSETS:
Beginning of period		745,454			272,123			300,209			-			-			-		-

End of period	$	890,425		$	297,519		$	298,885		$	77		$	4,441		$	17	$	294

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

117

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	Fidelity VIP Fundsmanager 20% Service 2			Fidelity VIP Health Care Port Service 2			Fidelity VIP Target Volatility Service 2			Franklin Dynatech VIP Fund			Franklin Income VIP CL 2			Franklin Multi-Asset Dynamic Multi-Strat VIT			Franklin Mutual Global Discovery VIP CL 2

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	2		$	-			-		$	(514	)	$	6,655		$	159		$	66
Net realized gain (loss) on investments		-			(1	)		8.00			4,831			1,446			166			30
Change in net unrealized appreciation (depreciation) on investments		(4	)		-			(6	)		1,992			18,530			1,701			406

Net increase (decrease) in net assets resulting from operations		(2	)		(1	)		1.00			6,309			26,631			2,026			502

CONTRACT TRANSACTIONS:
Contract owners' net payments		120			159			60.00			6,994			3,255			67			216
Contract maintenance fees		(1	)		-			-			(412	)		(1,645	)		(321	)		(8	)
Contract owners' benefits		(7	)		-			-			(4,303	)		(18,414	)		(1,833	)		(155	)
Net transfers (to) from the Company and Subaccounts		451			39			-			(1,792	)		(3,837	)		763			1,501

Increase (decrease) in net assets resulting from Contract transactions		564			198			60.00			488			(20,641	)		(1,324	)		1,554

Total increase (decrease) in net assets		562			197			62.00			6,797			5,991			702			2,056

NET ASSETS:
Beginning of period		-			-			-			43,345			179,434			18,608			1,938

End of period	$	562		$	197			62.00		$	50,142		$	185,425		$	19,309		$	3,994

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

118

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	Franklin Mutual Shares VIP CL 2			Franklin Rising Dividend VIP CL 2			Franklin Small Cap Value VIP CL 2			Franklin Small-Mid Cap Growth VIP CL 2			Franklin Strategic Income VIP CL 2			Franklin US Government Securities VIP CL 2			Goldman Sachs Global Trends Allocation Fund SC

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	10,761		$	(698	)	$	(53	)	$	(521	)	$	141		$	6,005		$	(97	)
Net realized gain (loss) on investments		18,519			28,651			3,695			7,798			-			(123	)		956
Change in net unrealized appreciation (depreciation) on investments		73,268			52,829			7,175			(3,426	)		(76	)		(18,010	)		77

Net increase (decrease) in net assets resulting from operations		102,549			80,782			10,818			3,852			65			(12,128	)		936

CONTRACT TRANSACTIONS:
Contract owners' net payments		7,792			7,243			1,403			2,632			834			7,419			90
Contract maintenance fees		(6,807	)		(3,518	)		(454	)		(351	)		(12	)		(4,852	)		(94	)
Contract owners' benefits		(61,249	)		(35,514	)		(5,551	)		(4,291	)		(100	)		(45,536	)		(628	)
Net transfers (to) from the Company and Subaccounts		(46,174	)		(21,842	)		(5,866	)		(10,216	)		518			61,345			469

Increase (decrease) in net assets resulting from Contract transactions		(106,438	)		(53,631	)		(10,469	)		(12,227	)		1,240			18,376			(164	)

Total increase (decrease) in net assets		(3,889	)		27,151			349			(8,375	)		1,305			6,248			772

NET ASSETS:
Beginning of period		597,023			341,603			47,671			47,230			5,359			413,139			6,519

End of period	$	593,134		$	368,754		$	48,020		$	38,855		$	6,665		$	419,387		$	7,291

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

119

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	Goldman Sachs International Equity Insights			Goldman Sachs International Equity Insights SC			Goldman Sachs Large Cap Value			Goldman Sachs Large Cap Value Fund SC			Goldman Sachs Mid Cap Value			Goldman Sachs Mid Cap Value SC			Goldman Sachs Small Cap Equity Insights

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	390		$	580		$	(10	)	$	(223	)	$	(32	)	$	(1,260	)	$	(188	)
Net realized gain (loss) on investments		795			3,019			5,058			15,549			1,130			26,677			6,054
Change in net unrealized appreciation (depreciation) on investments		1,246			448			2,702			6,707			608			11,108			(1,008	)

Net increase (decrease) in net assets resulting from operations		2,431			4,047			7,750			22,033			1,706			36,525			4,859

CONTRACT TRANSACTIONS:
Contract owners' net payments		160			230			587			328			50			1,619			385
Contract maintenance fees		(84	)		(432	)		(49	)		(1,225	)		(8	)		(1,669	)		(37	)
Contract owners' benefits		(2,772	)		(3,874	)		(4,801	)		(10,807	)		(698	)		(14,192	)		(3,043	)
Net transfers (to) from the Company and Subaccounts		(325	)		(3,512	)		(1,385	)		(7,162	)		105			(16,928	)		(1,273	)

Increase (decrease) in net assets resulting from Contract transactions		(3,020	)		(7,588	)		(5,648	)		(18,866	)		(551	)		(31,171	)		(3,967	)

Total increase (decrease) in net assets		(589	)		(3,541	)		2,103			3,167			1,155			5,354			891

NET ASSETS:
Beginning of period		22,861			40,321			36,513			104,778			6,009			138,656			22,712

End of period	$	22,272		$	36,780		$	38,616		$	107,945		$	7,163		$	144,009		$	23,603

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

120

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	Goldman Sachs Small Cap Equity Insights SC			Goldman Sachs Strategic Growth			Goldman Sachs Strategic Growth SC			Goldman Sachs US Equity Insights			Goldman Sachs US Equity Insights SC			Goldman Sachs VIT Core Fixed Income Fund SC			Goldman Sachs VIT Mid Cap Growth Fund SC

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(80	)	$	(448	)	$	(2,259	)	$	(165	)	$	(6	)	$	35		$	(700	)
Net realized gain (loss) on investments		4,808			6,229			34,000			9,039			218			44			11,564
Change in net unrealized appreciation (depreciation) on investments		(1,884	)		1,356			5,291			(1,395	)		(15	)		(1,047	)		(4,799	)

Net increase (decrease) in net assets resulting from operations		2,844			7,137			37,033			7,479			197			(968	)		6,066

CONTRACT TRANSACTIONS:
Contract owners' net payments		19			594			2,064			432			1			2,039			574
Contract maintenance fees		(158	)		(48	)		(2,284	)		(14	)		(10	)		(391	)		(572	)
Contract owners' benefits		(1,221	)		(4,679	)		(19,421	)		(3,449	)		(59	)		(2,072	)		(6,698	)
Net transfers (to) from the Company and Subaccounts		(2,181	)		(1,517	)		(18,525	)		(775	)		3			4,979			(5,127	)

Increase (decrease) in net assets resulting from Contract transactions		(3,540	)		(5,649	)		(38,166	)		(3,805	)		(65	)		4,555			(11,823	)

Total increase (decrease) in net assets		(696	)		1,488			(1,133	)		3,674			132			3,588			(5,757	)

NET ASSETS:
Beginning of period		13,503			37,639			199,113			28,662			740			29,345			63,563

End of period	$	12,807		$	39,127		$	197,980		$	32,337		$	872		$	32,932		$	57,806

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

121

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	Guggenheim Floating Rate Strategies (Series F)			Guggenheim Global Managed Futures Strategy			Guggenheim Long Short Equity			Guggenheim Multi-Hedge Strategies			Invesco V.I. American Franchise I			Invesco V.I. American Franchise II			Invesco V.I. American Value II

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	65		$	(14	)	$	(1	)	$	(10	)	$	(91	)	$	(38	)	$	(661	)
Net realized gain (loss) on investments		2			(28	)		7			68			1,220			622			5,434
Change in net unrealized appreciation (depreciation) on investments		(9	)		108			33			34			(356	)		(218	)		16,770

Net increase (decrease) in net assets resulting from operations		58			65			40			91			773			366			21,543

CONTRACT TRANSACTIONS:
Contract owners' net payments		50			1			15			18			56			3			6,493
Contract maintenance fees		(2	)		(1	)		-			(1	)		(1	)		(11	)		(1,029	)
Contract owners' benefits		(342	)		(221	)		(54	)		(93	)		(464	)		(356	)		(7,972	)
Net transfers (to) from the Company and Subaccounts		(70	)		(1,395	)		-			(486	)		(846	)		(38	)		(11,223	)

Increase (decrease) in net assets resulting from Contract transactions		(365	)		(1,615	)		(39	)		(562	)		(1,255	)		(402	)		(13,732	)

Total increase (decrease) in net assets		(307	)		(1,550	)		1			(471	)		(482	)		(37	)		7,810

NET ASSETS:
Beginning of period		3,976			1,929			167			1,183			7,874			3,542			86,143

End of period	$	3,669		$	378		$	168		$	712		$	7,392		$	3,506		$	93,953

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

122

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	Invesco V.I. Balanced Risk Allocation II			Invesco V.I. Capital Appreciation Fund I			Invesco V.I. Capital Appreciation Fund II			Invesco V.I. Comstock I			Invesco V.I. Comstock II			Invesco V.I. Conservative Balance II			Invesco V.I. Discovery Mid Cap Growth Fund I

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	1,185		$	(134	)	$	(711	)	$	146		$	905		$	5		$	(64	)
Net realized gain (loss) on investments		2,790			710			6,281			751			10,349			30			677
Change in net unrealized appreciation (depreciation) on investments		1,432			1,295			8,269			5,721			36,528			(18	)		129

Net increase (decrease) in net assets resulting from operations		5,407			1,871			13,839			6,618			47,781			18			742

CONTRACT TRANSACTIONS:
Contract owners' net payments		265			54			767			196			2,533			616			1
Contract maintenance fees		(909	)		(3	)		(769	)		(5	)		(1,449	)		-			(1	)
Contract owners' benefits		(7,858	)		(667	)		(6,089	)		(2,642	)		(18,129	)		(19	)		(569	)
Net transfers (to) from the Company and Subaccounts		3,725			(154	)		(6,032	)		(330	)		(19,192	)		515			73

Increase (decrease) in net assets resulting from Contract transactions		(4,776	)		(769	)		(12,123	)		(2,781	)		(36,237	)		1,111			(496	)

Total increase (decrease) in net assets		631			1,102			1,716			3,837			11,544			1,129			246

NET ASSETS:
Beginning of period		71,332			9,352			70,047			21,630			163,172			-			4,638

End of period	$	71,963		$	10,454		$	71,762		$	25,467		$	174,716		$	1,129		$	4,884

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

123

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	Invesco V.I. Discovery Mid Cap Growth Fund II			Invesco V.I. Equity and Income II			Invesco V.I. Global Fund I			Invesco V.I. Global Fund II			Invesco V.I. Global Real Estate II			Invesco V.I. Global Strategic Income Fund I			Invesco V.I. Global Strategic Income Fund II

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(440	)	$	1,369		$	(125	)	$	(3,583	)	$	209		$	220		$	9,233
Net realized gain (loss) on investments		7,360			9,749			933			39,565			266			(36	)		43
Change in net unrealized appreciation (depreciation) on investments		(161	)		27,230			508			7,990			2,668			(525	)		(22,693	)

Net increase (decrease) in net assets resulting from operations		6,759			38,349			1,316			43,972			3,143			(341	)		(13,417	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		434			2,574			15			2,217			488			20			1,304
Contract maintenance fees		(339	)		(2,469	)		(2	)		(3,343	)		(141	)		(2	)		(3,270	)
Contract owners' benefits		(4,353	)		(23,601	)		(971	)		(33,491	)		(1,458	)		(996	)		(29,753	)
Net transfers (to) from the Company and Subaccounts		(10,087	)		(10,826	)		70			(30,176	)		576			213			36,543

Increase (decrease) in net assets resulting from Contract transactions		(14,345	)		(34,322	)		(887	)		(64,793	)		(535	)		(764	)		4,824

Total increase (decrease) in net assets		(7,586	)		4,027			429			(20,821	)		2,608			(1,105	)		(8,593	)

NET ASSETS:
Beginning of period		47,696			235,750			9,721			336,381			12,573			7,581			289,028

End of period	$	40,110		$	239,777		$	10,150		$	315,560		$	15,180		$	6,476		$	280,436

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

124

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	Invesco V.I. Government Securities II			Invesco V.I. Growth & Income I			Invesco V.I. Growth & Income II			Invesco V.I. EQV International Equity Fund II			Invesco V.I. Main Street Fund I			Invesco V.I. Main Street Fund II			Invesco V.I. Main Street Small Cap Fund II

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	2,025		$	88		$	1,525		$	(101	)	$	(52	)	$	(533	)	$	-
Net realized gain (loss) on investments		(29	)		552			28,888			8,730			706			9,815			1
Change in net unrealized appreciation (depreciation) on investments		(6,857	)		5,875			117,748			(7,118	)		1,335			18,045			1

Net increase (decrease) in net assets resulting from operations		(4,861	)		6,515			148,161			1,511			1,989			27,327			2

CONTRACT TRANSACTIONS:
Contract owners' net payments		11,724			353			2,648			1,336			65			11,709			74
Contract maintenance fees		(1,682	)		(6	)		(7,091	)		(595	)		(2	)		(1,436	)		-
Contract owners' benefits		(10,608	)		(2,780	)		(62,250	)		(7,670	)		(813	)		(7,942	)		-
Net transfers (to) from the Company and Subaccounts		23,177			(74	)		(79,438	)		(25,418	)		(246	)		(6,501	)		19

Increase (decrease) in net assets resulting from Contract transactions		22,611			(2,507	)		(146,131	)		(32,347	)		(996	)		(4,170	)		94

Total increase (decrease) in net assets		17,750			4,008			2,030			(30,836	)		993			23,157			96

NET ASSETS:
Beginning of period		132,867			25,146			602,185			73,418			8,118			105,790			-

End of period	$	150,617		$	29,154		$	604,214		$	42,582		$	9,111		$	128,947		$	96

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

125

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	Invesco V.I. Small Cap Equity II			Invesco V.I. U.S. Government Money Portfolio I			Lord Abbett Bond Debenture VC			Lord Abbett Dividend Growth Fund			Lord Abbett Growth & Income VC			Lord Abbett Growth Opportunities VC			Lord Abbett Mid Cap Stock VC

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(189	)	$	(3,444	)	$	11,508		$	188		$	(54	)	$	(801	)	$	(246	)
Net realized gain (loss) on investments		2,485			-			9,954			16,180			12,101			18,601			8,300
Change in net unrealized appreciation (depreciation) on investments		1,065			-			(9,302	)		11,661			5,122			(14,067	)		5,709

Net increase (decrease) in net assets resulting from operations		3,361			(3,444	)		12,160			28,029			17,170			3,733			13,763

CONTRACT TRANSACTIONS:
Contract owners' net payments		1,730			1,638			21,256			7,732			482			1,405			509
Contract maintenance fees		(130	)		(4,408	)		(6,646	)		(1,272	)		(369	)		(886	)		(328	)
Contract owners' benefits		(1,788	)		(55,209	)		(54,995	)		(9,666	)		(7,758	)		(7,262	)		(5,819	)
Net transfers (to) from the Company and Subaccounts		(3,715	)		156,777			56,007			(4,730	)		(4,396	)		(30,521	)		(3,823	)

Increase (decrease) in net assets resulting from Contract transactions		(3,903	)		98,798			15,623			(7,937	)		(12,041	)		(37,264	)		(9,460	)

Total increase (decrease) in net assets		(542	)		95,354			27,782			20,092			5,129			(33,531	)		4,303

NET ASSETS:
Beginning of period		18,931			326,367			556,026			115,152			66,910			83,665			53,473

End of period	$	18,390		$	421,721		$	583,809		$	135,244		$	72,039		$	50,134		$	57,775

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

126

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	Lord Abbett Series Fundamental Equity VC			Lord Abbett Series Short Duration Income VC			MFS Growth Series IC			MFS Growth Series SC			MFS Investors Trust IC			MFS Investors Trust SC			MFS New Discovery IC

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(629	)	$	6		$	(100	)	$	(558	)	$	(52	)	$	(408	)	$	(47	)
Net realized gain (loss) on investments		15,285			(2	)		1,535			11,798			669			7,357			621
Change in net unrealized appreciation (depreciation) on investments		31,325			(6	)		33			(97	)		996			6,054			(562	)

Net increase (decrease) in net assets resulting from operations		45,980			(2	)		1,469			11,144			1,614			13,003			11

CONTRACT TRANSACTIONS:
Contract owners' net payments		697			160			30			270			43			308			13
Contract maintenance fees		(2,407	)		-			(2	)		(328	)		(2	)		(447	)		(1	)
Contract owners' benefits		(20,296	)		(158	)		(619	)		(7,400	)		(872	)		(6,926	)		(354	)
Net transfers (to) from the Company and Subaccounts		(17,652	)		234			(462	)		(3,137	)		(105	)		(5,541	)		77

Increase (decrease) in net assets resulting from Contract transactions		(39,657	)		237			(1,053	)		(10,595	)		(935	)		(12,608	)		(265	)

Total increase (decrease) in net assets		6,324			235			416			548			678			395			(253	)

NET ASSETS:
Beginning of period		192,293			-			7,379			54,233			6,771			56,467			3,296

End of period	$	198,617		$	235		$	7,796		$	54,782		$	7,448		$	56,861		$	3,043

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

127

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	MFS New Discovery SC			MFS Research IC			MFS Research SC			MFS Total Return IC			MFS Total Return SC			MFS Utilities IC			MFS Utilities SC

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(718	)	$	(48	)	$	(28	)	$	106		$	305		$	7		$	88
Net realized gain (loss) on investments		15,873			685			421			1,530			3,670			183			1,663
Change in net unrealized appreciation (depreciation) on investments		(14,159	)		620			454			721			2,339			34			1,174

Net increase (decrease) in net assets resulting from operations		996			1,257			847			2,357			6,313			224			2,925

CONTRACT TRANSACTIONS:
Contract owners' net payments		332			16			46			157			585			2			144
Contract maintenance fees		(621	)		(2	)		(24	)		(4	)		(313	)		-			(221	)
Contract owners' benefits		(7,579	)		(700	)		(493	)		(2,688	)		(5,453	)		(347	)		(3,258	)
Net transfers (to) from the Company and Subaccounts		(4,438	)		(148	)		(120	)		54			281			(14	)		(10	)

Increase (decrease) in net assets resulting from Contract transactions		(12,306	)		(834	)		(591	)		(2,481	)		(4,900	)		(360	)		(3,345	)

Total increase (decrease) in net assets		(11,310	)		422			255			(124	)		1,414			(135	)		(420	)

NET ASSETS:
Beginning of period		69,095			5,838			3,854			19,408			51,632			2,019			25,441

End of period	$	57,785		$	6,260		$	4,109		$	19,285		$	53,045		$	1,884		$	25,021

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

128

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	MFS VIT II Emerging Markets Equity SC			MFS VIT II International Value SC			MFS VIT II MA Investors Growth Stock IC			MFS VIT II MA Investors Growth Stock SC			MFS VIT Total Return Bond SC			MFS VIT Value SC			Morgan Stanley VIF Global Real Estate II

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(2	)	$	(182	)	$	(22	)	$	(342	)	$	5,932		$	90		$	81
Net realized gain (loss) on investments		6			2,521			321			6,810			163			18,487			255
Change in net unrealized appreciation (depreciation) on investments		(30	)		(228	)		136			2,372			(14,395	)		24,015			1,155

Net increase (decrease) in net assets resulting from operations		(26	)		2,112			436			8,840			(8,300	)		42,592			1,492

CONTRACT TRANSACTIONS:
Contract owners' net payments		-			172			38			111			1,444			996			17
Contract maintenance fees		(1	)		(52	)		-			(428	)		(4,208	)		(1,614	)		(87	)
Contract owners' benefits		(42	)		(3,819	)		(266	)		(4,259	)		(45,559	)		(23,436	)		(734	)
Net transfers (to) from the Company and Subaccounts		19			(241	)		(11	)		(3,200	)		45,943			(16,354	)		5,383

Increase (decrease) in net assets resulting from Contract transactions		(24	)		(3,940	)		(239	)		(7,776	)		(2,380	)		(40,408	)		4,580

Total increase (decrease) in net assets		(50	)		(1,829	)		197			1,064			(10,680	)		2,184			6,072

NET ASSETS:
Beginning of period		349			24,678			1,951			39,387			401,842			193,873			1,330

End of period	$	299		$	22,849		$	2,148		$	40,451		$	391,163		$	196,057		$	7,402

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

129

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	PIMCO Income Advisor			PIMCO VIT All Asset Advisor			PIMCO VIT Global Diversified Allocation Portfolio			PIMCO VIT High Yield Advance			PIMCO VIT Long-Term US Government Advisor			PIMCO VIT Low Duration Advisor			PIMCO VIT Real Return Advisor

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	2		$	736		$	556		$	1		$	106		$	(823	)	$	11,217
Net realized gain (loss) on investments		(1	)		65			31			-			5,513			(6	)		79
Change in net unrealized appreciation (depreciation) on investments		(2	)		231			(135	)		-			(7,409	)		(2,082	)		1,582

Net increase (decrease) in net assets resulting from operations		(1	)		1,032			452			-			(1,790	)		(2,910	)		12,879

CONTRACT TRANSACTIONS:
Contract owners' net payments		176			147			92			20			876			13,289			2,291
Contract maintenance fees		-			(81	)		(83	)		-			(333	)		(1,676	)		(3,679	)
Contract owners' benefits		(9	)		(865	)		(767	)		(5	)		(2,980	)		(10,997	)		(30,008	)
Net transfers (to) from the Company and Subaccounts		197			(70	)		402			111			3,554			23,019			33,236

Increase (decrease) in net assets resulting from Contract transactions		363			(869	)		(356	)		126			1,118			23,635			1,840

Total increase (decrease) in net assets		362			163			97			127			(672	)		20,725			14,719

NET ASSETS:
Beginning of period		-			7,363			6,534			-			30,865			126,694			285,898

End of period	$	362		$	7,526		$	6,630		$	127		$	30,193		$	147,419		$	300,617

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

130

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	PIMCO VIT Short-Term Advisor			PIMCO VIT Total Return Advisor			Protective Life Dynamic Allocation Series – Conservative			Protective Life Dynamic Allocation Series – Growth			Protective Life Dynamic Allocation Series – Moderate			Royce Capital Fund Micro-Cap SC			Royce Capital Fund Small-Cap SC

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(82	)	$	4,882		$	(99	)	$	(124	)	$	(484	)	$	(251	)	$	62
Net realized gain (loss) on investments		1			32,270			267			784			1,502			3,141			9,625
Change in net unrealized appreciation (depreciation) on investments		(758	)		(55,333	)		3,075			10,586			41,993			2,810			37,135

Net increase (decrease) in net assets resulting from operations		(839	)		(18,181	)		3,242			11,246			43,011			5,700			46,822

CONTRACT TRANSACTIONS:
Contract owners' net payments		2,605			21,566			2,816			564			155,005			67			949
Contract maintenance fees		(728	)		(8,767	)		(507	)		(179	)		(6,571	)		(242	)		(2,282	)
Contract owners' benefits		(7,266	)		(74,243	)		(8,415	)		(4,279	)		(13,354	)		(2,185	)		(19,078	)
Net transfers (to) from the Company and Subaccounts		6,790			100,118			8,560			(5,029	)		56,031			(6,170	)		(25,654	)

Increase (decrease) in net assets resulting from Contract transactions		1,401			38,674			2,455			(8,923	)		191,110			(8,530	)		(46,064	)

Total increase (decrease) in net assets		562			20,494			5,697			2,322			234,121			(2,830	)		758

NET ASSETS:
Beginning of period		65,883			746,621			40,357			62,414			290,751			22,597			183,315

End of period	$	66,445		$	767,115		$	46,054		$	64,736		$	524,872		$	19,767		$	184,073

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

131

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	Rydex Commodities Strategy			Rydex Inverse Government Long Bond		T. Rowe Price All-Cap Opportunities Portfolio		T. Rowe Price Blue Chip Growth Portfolio II			T. Rowe Price Health Sciences Portfolio II			Templeton Developing Markets VIP CL 2			Templeton Foreign VIP CL 2

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	-		$	-	$	-	$	(8	)	$	(3	)	$	5		$	707
Net realized gain (loss) on investments		1			-		-		229			52			2,164			1,993
Change in net unrealized appreciation (depreciation) on investments		2			-		-		(201	)		(55	)		(2,456	)		242

Net increase (decrease) in net assets resulting from operations		3			-		-		20			(7	)		(287	)		2,942

CONTRACT TRANSACTIONS:
Contract owners' net payments		-			-		100		2,001			781			408			409
Contract maintenance fees		-			-		-		(2	)		(1	)		(77	)		(848	)
Contract owners' benefits		(1	)		-		-		(20	)		(11	)		(966	)		(9,108	)
Net transfers (to) from the Company and Subaccounts		(2	)		1		-		732			255			(9,898	)		(12,382	)

Increase (decrease) in net assets resulting from Contract transactions		(3	)		1		100		2,710			1,024			(10,532	)		(21,929	)

Total increase (decrease) in net assets		-			1		100		2,730			1,017			(10,820	)		(18,987	)

NET ASSETS:
Beginning of period		9			6		-		-			-			13,677			90,070

End of period	$	10		$	8	$	100	$	2,730		$	1,017		$	2,857		$	71,083

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

132

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	Templeton Global Bond VIP Fund CL 2			Templeton Growth VIP CL 2			VanEck Global Hard Asset			Vanguard VIF Balanced			Vanguard VIF Capital Growth			Vanguard VIF Conservative Allocation			Vanguard VIF Diversified Val

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(2,741	)	$	34		$	(3	)	$	3		$	1		$	-		$	-
Net realized gain (loss) on investments		(111	)		3,216			25			12			7			2			2
Change in net unrealized appreciation (depreciation) on investments		(12,553	)		717			22			54			11			6			10

Net increase (decrease) in net assets resulting from operations		(15,405	)		3,968			43			70			19			8			13

CONTRACT TRANSACTIONS:
Contract owners' net payments		1,867			568			-			730			103			338			16
Contract maintenance fees		(2,958	)		(950	)		-			(3	)		(1	)		(2	)		(1	)
Contract owners' benefits		(24,243	)		(11,186	)		-			(1	)		-			(1	)		-
Net transfers (to) from the Company and Subaccounts		40,469			(11,034	)		(51	)		-			73			-			53

Increase (decrease) in net assets resulting from Contract transactions		15,135			(22,601	)		(51	)		726			175			335			68

Total increase (decrease) in net assets		(270	)		(18,634	)		(8	)		796			193			343			80

NET ASSETS:
Beginning of period		245,678			110,363			258			36			26			-			-

End of period	$	245,408		$	91,730		$	250		$	832		$	219		$	343		$	80

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

133

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	Vanguard VIF Equity Income			Vanguard VIF Equity Index			Vanguard VIF Global Bond Index			Vanguard VIF Growth			Vanguard VIF High Yield Bond			Vanguard VIF International			Vanguard VIF Mid-Cap Index

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	(1	)	$	-		$	-		$	(1	)	$	4		$	(1	)	$	1
Net realized gain (loss) on investments		(1	)		5			1			14			-			3			9
Change in net unrealized appreciation (depreciation) on investments		49			86			(1	)		27			(1	)		(29	)		55

Net increase (decrease) in net assets resulting from operations		48			91			-			40			3			(27	)		65

CONTRACT TRANSACTIONS:
Contract owners' net payments		617			832			103			661			79			594			684
Contract maintenance fees		(3	)		(1	)		-			(1	)		(1	)		(1	)		(2	)
Contract owners' benefits		(41	)		(4	)		-			-			(1	)		(40	)		(43	)
Net transfers (to) from the Company and Subaccounts		25			18			34			-			34			16			95

Increase (decrease) in net assets resulting from Contract transactions		598			845			136			660			112			570			734

Total increase (decrease) in net assets		646			936			136			700			115			543			799

NET ASSETS:
Beginning of period		-			8			12			68			24			5			6

End of period	$	646		$	944		$	148		$	768		$	139		$	548		$	805

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

134

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

	SUBACCOUNTS

($ in thousands)	Vanguard VIF Moderate Allocation			Vanguard VIF Money Market			Vanguard VIF Real Estate Index			Vanguard VIF Short Term Investment Grade			Vanguard VIF Total Bond Market Index			Vanguard VIF Total International Stock Market Index			Vanguard VIF Total Stock Mkt Index

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	1		$	(1	)	$	-		$	-		$	6		$	1		$	3
Net realized gain (loss) on investments		10			-			-			-			3			-			25
Change in net unrealized appreciation (depreciation) on investments		14			-			38			(10	)		(15	)		5			115

Net increase (decrease) in net assets resulting from operations		25			(1	)		39			(10	)		(6	)		6			143

CONTRACT TRANSACTIONS:
Contract owners' net payments		607			1,028			264			1,324			838			462			666
Contract maintenance fees		(4	)		(4	)		-			(2	)		(3	)		(1	)		(4	)
Contract owners' benefits		(1	)		(5	)		(1	)		(13	)		(1	)		-			(1	)
Net transfers (to) from the Company and Subaccounts		-			(696	)		(17	)		118			38			77			132

Increase (decrease) in net assets resulting from Contract transactions		603			324			246			1,428			872			536			793

Total increase (decrease) in net assets		628			323			284			1,419			866			542			937

NET ASSETS:
Beginning of period		36			2			3			11			270			4			242

End of period	$	664		$	325		$	287		$	1,430		$	1,136		$	546		$	1,179

Note: Totals may not appear to foot/crossfoot due to rounding.

(Continued)

See accompanying notes to financial statements.

135

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF
PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021


($ in thousands)	Western Asset Core Plus VIT II


INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)	$	40
Net realized gain (loss) on investments		-
Change in net unrealized appreciation (depreciation) on investments		(59	)

Net increase (decrease) in net assets resulting from operations		(18	)

CONTRACT TRANSACTIONS:
Contract owners' net payments		2,109
Contract maintenance fees		(5	)
Contract owners' benefits		(6	)
Net transfers (to) from the Company and Subaccounts		207


Increase (decrease) in net assets resulting from Contract transactions		2,305

Total increase (decrease) in net assets		2,287

NET ASSETS:
Beginning of period		-

End of period	$	2,287

Note: Totals may not appear to foot/crossfoot due to rounding.

(Concluded)

See accompanying notes to financial statements.

136

PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT OF

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2022

1.	ORGANIZATION

The Protective Variable Annuity Separate Account (the “Separate Account”), a segregated unit investment trust registered under the Investment Company Act of 1940, as amended, was established by Protective Life Insurance Company on March 14, 1994, and exists in accordance with the regulations of the state of Tennessee. Protective Life Insurance Company (the “Company”) is a wholly owned subsidiary of Protective Life Corporation (“PLC”). PLC is a wholly owned subsidiary of Dai-ichi Life Holdings, Inc., a kabushiki kaisha organized under the laws of Japan.

Under applicable insurance law, the assets and liabilities of the Separate Account are clearly identified and distinguished from the Company’s other assets and liabilities. The portion of the Separate Account’s assets applicable to the variable annuity contracts (the “Contracts”) is not chargeable with liabilities arising out of any other business the Company may conduct.

The Separate Account is a funding vehicle for individual variable annuity Contracts; it consists of a number of subaccounts (the “Subaccounts”), also commonly referred to as investment divisions or funds, each of which is treated as an individual accounting entity for financial reporting purposes. The Separate Account’s value at any time is allocated among Contract holders based on the number and value of their accumulation units representing their interest in the separate account; all of the investible assets of the Separate Account are invested in the corresponding mutual fund.

Contract owners may allocate some or all of the applicable net contributions or transfer some or all of the Contract value to the Company’s guaranteed account, which is not included in these financial statements. The assets of the Company support its insurance and annuity obligations and are subject to the Company’s general liabilities from business operations.

Contract owners’ net contributions are allocated to the Subaccounts in accordance with Contract owner instructions and are recorded as Contract owners’ net contributions in the Statements of Changes in Net Assets. Such amounts are used to provide account funds to pay Contract values under the Contracts.

The following is a list of the variable annuity products funded by the Separate Account:

Dimensions II		Protective Investors Benefit Advisory
Dimensions III		Protective Investors Series
Dimensions IV		Protective Investors Series ADV
Dimensions V		Protective Rewards
Elements Access		Protective Rewards II
Elements Classic		Protective Rewards Elite
Elements Plus		Protective Values
Mileage Credit		Protective Values Access
Protective Access		Protective Values Advantage
Protective Access XL		Protective Variable Annuity
Protective Advantage		Protective Variable Annuity (2012) B, C, L Series
Protective Aspirations		Protective Variable Annuity II
Protective Dimensions		Protective Variable Annuity II B Series

137

For the years and periods ended December 31, 2022 and 2021, the Separate Account was invested in up to two hundred and ten Subaccounts, as follows:

AB VPS Growth and Income B		Guggenheim Long Short Equity
AB VPS Large Cap Growth B		Guggenheim Multi-Hedge Strategies
AB VPS Small Cap Growth B		Invesco V.I. American Franchise I
AB VPS Small/Mid Cap Value B		Invesco V.I. American Franchise II
American Century VP Balanced I (c)		Invesco V.I. American Value II
American Funds IS Asset Allocation Class 2		Invesco V.I. Balanced Risk Allocation II
American Funds IS Asset Allocation Class 4		Invesco V.I. Capital Appreciation Fund I
American Funds IS Capital Income Builder Class 2		Invesco V.I. Capital Appreciation Fund II
American Funds IS Capital Income Builder Class 4		Invesco V.I. Comstock I
American Funds IS Capital World Growth and Income Fund 2		Invesco V.I. Comstock II
American Funds IS Capital World Growth and Income Fund 4		Invesco V.I. Conservative Balance II
American Funds IS Global Bond 2 (c)		Invesco V.I. Discovery Mid Cap Growth Fund I
American Funds IS Global Growth Class 2		Invesco V.I. Discovery Mid Cap Growth Fund II
American Funds IS Global Growth Class 4		Invesco V.I. Equity and Income II
American Funds IS Global Small Capitalization Class 2		Invesco V.I. Global Fund I
American Funds IS Global Small Capitalization Class 4		Invesco V.I. Global Fund II
American Funds IS Growth – Income Class 2		Invesco V.I. Global Real Estate II
American Funds IS Growth – Income Class 4		Invesco V.I. Global Strategic Income Fund I
American Funds IS Growth Class 2		Invesco V.I. Global Strategic Income Fund II
American Funds IS Growth Class 4		Invesco V.I. Government Securities II
American Funds IS High-Income Bond 2		Invesco V.I. Growth & Income I
American Funds IS International Class 2		Invesco V.I. Growth & Income II
American Funds IS International Class 4		Invesco V.I. EQV International Equity Fund II (a)
American Funds IS International Growth and Income 2		Invesco V.I. Main Street Fund I
American Funds IS New World Class 2		Invesco V.I. Main Street Fund II
American Funds IS New World Class 4		Invesco V.I. Main Street Small Cap Fund II
American Funds IS The Bond Fund of America 2		Invesco V.I. Small Cap Equity II
American Funds IS The Bond Fund of America 4		Invesco V.I. U.S. Government Money Portfolio I
American Funds IS U.S. Government Securities Fund 2		Janus Henderson Balanced Service Class (c)
American Funds IS U.S. Government Securities Fund 4		Janus Henderson Forty - Service Class (c)
American Funds IS Washington Mutual Investors Fund 2		Janus Henderson Global Technology - Service Class (c)
American Funds IS Washington Mutual Investors Fund 4		Janus Henderson Overseas Portfolio - Service Class (c)
Blackrock 60/40 Target Allocation ETF V.I. Fund		Lord Abbett Bond Debenture VC
Blackrock Global Allocation V.I. III		Lord Abbett Dividend Growth Fund
Blackrock International V.I. I		Lord Abbett Growth & Income VC
Calvert VP SRI Balanced		Lord Abbett Growth Opportunities VC
Clearbridge Variable Dividend Strategy II		Lord Abbett Mid Cap Stock VC
Clearbridge Variable Large Cap Growth II		Lord Abbett Series Fundamental Equity VC
ClearBridge Variable Mid Cap Portfolio Class II		Lord Abbett Series Short Duration Income VC
ClearBridge Variable Small Cap Growth II		MFS Growth Series IC

138

Columbia VP Balanced 2		MFS Growth Series SC
Columbia VP Emerging Markets Bond 2 (c)		MFS Investors Trust IC
Columbia VP Intermediate Bond 2		MFS Investors Trust SC
Columbia VP Limited Duration Credit 2		MFS New Discovery IC
Columbia VP Select Mid Cap Value 2		MFS New Discovery SC
Columbia VP Strategic Income 2		MFS Research IC
DFA VA Equity Allocation Portfolio Instl		MFS Research SC
DFA VA Global Bond		MFS Total Return IC
DFA VA Global Moderate Allocation Instl		MFS Total Return SC
DFA VA International Small		MFS Utilities IC
DFA VA International Value		MFS Utilities SC
DFA VA Short-Term Fixed		MFS VIT II Emerging Markets Equity SC
DFA VA US Large Value		MFS VIT II International Value SC
DFA VA US Targeted Value		MFS VIT II MA Investors Growth Stock IC
Fidelity Contrafund Portfolio SC2		MFS VIT II MA Investors Growth Stock SC
Fidelity Equity Income SC2		MFS VIT Total Return Bond SC
Fidelity Freedom Fund - 2015 Maturity SC2		MFS VIT Value SC
Fidelity Freedom Fund - 2020 Maturity SC2		Morgan Stanley VIF Core Plus Fixed Income Portfolio (c)
Fidelity Growth Portfolio SC2		Morgan Stanley VIF Global Real Estate II
Fidelity Index 500 Portfolio SC2		Morgan Stanley VIF Global Strategy Portfolio (c)
Fidelity Investment Grade Bonds SC2		PIMCO Income Advisor
Fidelity Mid Cap SC2		PIMCO VIT All Asset Advisor
Fidelity VIP Asset Manager Growth Service 2 (c)		PIMCO VIT Commodity Real Return Strategy Advantage (c)
Fidelity VIP Asset Manager Service 2		PIMCO VIT Global Diversified Allocation Portfolio
Fidelity VIP Balanced Service 2		PIMCO VIT High Yield Advance
Fidelity VIP Bond Index Port		PIMCO VIT Long-Term US Government Advisor
Fidelity VIP Energy Service 2		PIMCO VIT Low Duration Advisor
Fidelity VIP Extended Market Index Portfolio (c)		PIMCO VIT Real Return Advisor
Fidelity VIP Fundsmanager 20% Service 2		PIMCO VIT Short-Term Advisor
Fidelity VIP Fundsmanager 60% Service 2 (c)		PIMCO VIT Total Return Advisor
Fidelity VIP Fundsmanager 85% Service 2 (c)		Protective Life Dynamic Allocation Series – Conservative
Fidelity VIP Health Care Port Service 2		Protective Life Dynamic Allocation Series – Growth
Fidelity VIP International Index Port		Protective Life Dynamic Allocation Series – Moderate
Fidelity VIP Target Volatility Service 2		Royce Capital Fund Micro-Cap SC
Fidelity VIP Technology Initial (c)		Royce Capital Fund Small-Cap SC
Fidelity VIP Total Market Index Port (c)		Rydex Commodities Strategy
Fidelity VIP Utilities Initial (c)		Rydex Inverse Government Long Bond
Fidelity VIP Value Strategies Service 2 (c)		T. Rowe Price All-Cap Opportunities Portfolio
Franklin Dynatech VIP Fund		T. Rowe Price Blue Chip Growth Portfolio II
Franklin Income VIP CL 2		T. Rowe Price Health Sciences Portfolio II
Franklin Multi-Asset Dynamic Multi-Strat VIT (b)		T. Rowe Price Moderate Allocation (c)
Franklin Mutual Global Discovery VIP CL 2		Templeton Developing Markets VIP CL 2
Franklin Mutual Shares VIP CL 2		Templeton Foreign VIP CL 2

139

Franklin Rising Dividend VIP CL 2		Templeton Global Bond VIP Fund CL 2
Franklin Small Cap Value VIP CL 2		Templeton Growth VIP CL 2
Franklin Small-Mid Cap Growth VIP CL 2		VanEck Global Hard Asset
Franklin Strategic Income VIP CL 2		Vanguard VIF Balanced
Franklin US Government Securities VIP CL 2		Vanguard VIF Capital Growth
Goldman Sachs Global Trends Allocation Fund SC		Vanguard VIF Conservative Allocation
Goldman Sachs International Equity Insights		Vanguard VIF Diversified Val
Goldman Sachs International Equity Insights SC		Vanguard VIF Equity Income
Goldman Sachs Large Cap Value		Vanguard VIF Equity Index
Goldman Sachs Large Cap Value Fund SC		Vanguard VIF Global Bond Index
Goldman Sachs Mid Cap Value		Vanguard VIF Growth
Goldman Sachs Mid Cap Value SC		Vanguard VIF High Yield Bond
Goldman Sachs Small Cap Equity Insights		Vanguard VIF International
Goldman Sachs Small Cap Equity Insights SC		Vanguard VIF Mid-Cap Index
Goldman Sachs Strategic Growth		Vanguard VIF Moderate Allocation
Goldman Sachs Strategic Growth SC		Vanguard VIF Money Market
Goldman Sachs US Equity Insights		Vanguard VIF Real Estate Index
Goldman Sachs US Equity Insights SC		Vanguard VIF Short Term Investment Grade
Goldman Sachs VIT Core Fixed Income Fund SC		Vanguard VIF Total Bond Market Index
Goldman Sachs VIT Mid Cap Growth SC (a)		Vanguard VIF Total International Stock Market Index
Guggenheim Floating Rate Strategies (Series F)		Vanguard VIF Total Stock Mkt Index
Guggenheim Global Managed Futures Strategy		Western Asset Core Plus VIT II

(a)

See Subaccount Changes table below:

Subaccount Changes

During 2022, the following Subaccounts changed their names:

Previous Name	New Name	Date of Change
Invesco V.I. International Growth Fund II	Invesco V.I. EQV International Equity Fund II	April 29, 2022
Goldman Sachs VIT Growth Opportunities Fund	Goldman Sachs VIT Mid Cap Growth Fund SC	April 29, 2022

(b)

See Subaccount Changes table below:

Subaccount Changes
During 2022, the following Subaccounts ceased trading:

Subaccount		Date
Franklin Multi-Asset Dynamic Multi-Strat VIT		August 31, 2022

(c)

See Subaccount table below:

Subaccount Changes
During 2022, the following Subaccounts commenced trading:

Subaccount		Date
American Century VP Balanced I		September 12, 2022
American Funds IS Global Bond 2		January 13, 2022
Columbia VP Emerging Markets Bond 2		January 18, 2022
Fidelity VIP Asset Manager Growth Service 2		March 18, 2022
Fidelity VIP Extended Market Index Portfolio		April 19, 2022
Fidelity VIP Fundsmanager 60% Service 2		March 14, 2022
Fidelity VIP Fundsmanager 85% Service 2		January 18, 2022
Fidelity VIP Technology Initial		January 28, 2022
Fidelity VIP Total Market Index Port		January 21, 2022
Fidelity VIP Utilities Initial		March 10, 2022
Fidelity VIP Value Strategies Service 2		January 12, 2022
Janus Henderson Balanced Service Class		August 22, 2022
Janus Henderson Forty - Service Class		August 22, 2022
Janus Henderson Global Technology - Service Class		August 22, 2022
Janus Henderson Overseas Portfolio - Service Class		August 22, 2022
Morgan Stanley VIF Global Strategy Portfolio		September 12, 2022
Morgan Stanley VIF Core Plus Fixed Income Portfolio		December 2, 2022
PIMCO VIT Commodity Real Return Strategy Advantage		November 9, 2022
T. Rowe Price Moderate Allocation		January 21, 2022

140

Certain subaccounts that had no investments balances as of December 31, 2022 or that did not have activity during the year ended December 31, 2022 are not presented on the Statements of Assets and Liabilities as of December 31, 2022 or Statements of Operations for the year ended December 31, 2022, respectively.

The Separate Account is an investment company and, therefore, applies specialized accounting guidance in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 “Financial Services — Investment Companies”.

2.	SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of the significant accounting policies of the Separate Account.

Investment valuation

Investments are made and measured in shares and are presented net of management fees and other operating expenses incurred by the Subaccounts. The investments are valued at the net asset values of the mutual funds, which value their investment securities at fair value. Transactions with the mutual funds are recognized on the trade date.

The Separate Account classifies its valuations into three levels based upon the observability of inputs to the valuation of the Separate Account’s investments. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:

Level 1 – Unadjusted quoted prices for identical securities in active markets.

Level 2 – Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly. These may include quoted prices for similar assets in active markets.

Level 3 – Unobservable inputs to the extent observable inputs are not available and may include prices obtained from single broker quotes. Unobservable inputs reflect the reporting entity’s own assumptions and would be based on the best information available under the circumstances.

The Separate Account determines the fair values of certain financial assets based on quoted market prices. All of the investments in the Subaccounts of the Separate Account are classified as Level 1 in the fair value hierarchy and consist of open-ended mutual funds. Participants may, without restriction, transact at the daily net asset value (“NAV”) of the mutual funds. The NAV represents the daily per share value based on the fair value of the underlying portfolio of investments of the respective Subaccounts.

Receivables and payables from (to) the contracts and the fund manager

Receivables and payables from (to) the contracts and the fund manager include trading activity initiated at the contract level from the last business day of the year that has not yet been settled with the fund manager.

141

Receivables and payables from (to) the Company

Receivables and payables from (to) the Company include accruals for the variance between investments and reserves applicable to the Subaccount.

Contracts in the annuity payout phase

Net assets allocated to Contracts in the annuity payout phase are computed according to the Annuity 2000 Mortality Table with an assumed investment return of 5%. The mortality risk is fully borne by the Company and may result in additional amounts being transferred into the Separate Account by the Company to cover greater longevity of annuitants than expected. Conversely, if amounts allocated exceed amounts required, transfers may be made to the Company for the calculated or excess differential.

Dividend income and capital gain distributions

Dividend income and capital gain distributions are recorded on the ex-dividend date and are reinvested in additional shares of the mutual funds. Ordinary dividend and capital gain distributions are recognized within net investment income and net realized gains, respectively, as recorded in the financial statements of the Subaccounts.

Net realized gains and losses

Net realized gains and losses on investments include gains and losses on redemptions of the Subaccounts’ shares (determined using the last-in-first-out (LIFO) or weighted average cost basis, depending on the product) and capital gain distributions from the mutual funds.

Net transfers (to) from the Company and Subaccounts

Net transfers (to) from the Company and Subaccounts include transfers between the Subaccounts of the Separate Account as well as transfers between the Separate Account and the Company.

Federal income taxes

The results of the operations of the Separate Account are included in the federal income tax return of the Company. Under the provisions of the Contracts, the Company has the right to charge the Separate Account for federal income tax attributable to the Separate Account. No charge has been made against the Separate Account for such tax during the year ended December 31, 2022. Management will periodically review the application of this policy in the event of changes in tax law. Accordingly, a change may be made in future years to consider charges for any federal income taxes that would be attributable to the Contracts.

Use of estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that could affect the reported amounts of assets and liabilities, as well as the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from the estimates reported in the accompanying financial statements.

Risks and uncertainties

The Separate Account provides for various investment options in any combination of Subaccounts, each of which bears exposure to the market, credit, and liquidity risks of the underlying portfolio in which it invests. Due to the level of risk associated with certain investments and the level of uncertainty related to changes in the value of investments, it is at least reasonably possible that changes in risks in the near term could materially affect investment balances, the amounts reported in the statements of assets and liabilities, of operations and of changes in net assets. Accordingly, these financial statements should be read in conjunction with the financial statements and footnotes of the underlying Subaccounts identified in Note 1.

142

3.	PURCHASES AND SALES OF INVESTMENTS

The cost of purchases and proceeds from sales of investments for the year ended December 31, 2022 were as follows:

(in thousands)

Subaccount	Purchases		Sales
AB VPS Growth And Income B	$	1,157	$	464
AB VPS Large Cap Growth B		8,240		341
AB VPS Small Cap Growth B		305		18
AB VPS Small/Mid Cap Value B		633		412
American Century VP Balanced I		74		0	*
American Funds IS Asset Allocation Class 2		18,867		14,640
American Funds IS Asset Allocation Class 4		9,205		7,564
American Funds IS Capital Income Builder Class 2		1,465		493
American Funds IS Capital Income Builder Class 4		2,331		2,499
American Funds IS Capital World Growth And Income Fund 2		2,115		343
American Funds IS Capital World Growth And Income Fund 4		1,168		637
American Funds IS Global Bond 2		514		6
American Funds IS Global Growth Class 2		26,037		3,545
American Funds IS Global Growth Class 4		5,264		3,029
American Funds IS Global Small Capitalization Class 2		4,209		511
American Funds IS Global Small Capitalization Class 4		279		17
American Funds IS Growth – Income Class 2		7,330		948
American Funds IS Growth – Income Class 4		6,851		5,495
American Funds IS Growth Class 2		23,890		2,557
American Funds IS Growth Class 4		12,176		14,830
American Funds IS High-Income Bond 2		621		55
American Funds IS International Class 2		3,020		556
American Funds IS International Class 4		264		12
American Funds IS International Growth And Income 2		1,092		11
American Funds IS New World Class 2		2,668		653
American Funds IS New World Class 4		135		54
American Funds IS The Bond Fund Of America 2		19,057		872
American Funds IS The Bond Fund Of America 4		3,985		2,149
American Funds IS U.S. Government Securities Fund 2		693		499
American Funds IS U.S. Government Securities Fund 4		776		1,131
American Funds IS Washington Mutual Investors Fund 2		14,846		4,018
American Funds IS Washington Mutual Investors Fund 4		1,509		763
Blackrock 60/40 Target Allocation ETF V.I. Fund		3,044		459
Blackrock Global Allocation V.I. III		12,564		252
Blackrock International V.I. I		472		105
Calvert VP SRI Balanced		124		283
Clearbridge Variable Dividend Strategy II		213		32
Clearbridge Variable Large Cap Growth II		133		63
ClearBridge Variable Mid Cap Portfolio Class II		4,222		32,733
ClearBridge Variable Small Cap Growth II		4,059		6,821
Columbia VP Balanced 2		1,209		820
Columbia VP Emerging Markets Bond 2		110		1
Columbia VP Intermediate Bond 2		764		105

143

(in thousands)

Subaccount	Purchases		Sales
Columbia VP Limited Duration Credit 2	$	467	$	220
Columbia VP Select Mid Cap Value 2		585		57
Columbia VP Strategic Income 2		5,882		51
DFA VA Equity Allocation Portfolio Instl		94		1
DFA VA Global Bond		226		45
DFA VA Global Moderate Allocation Instl		310		112
DFA VA International Small		392		17
DFA VA International Value		664		42
DFA VA Short-Term Fixed		563		93
DFA VA US Large Value		1,203		165
DFA VA US Targeted Value		764		55
Fidelity Contrafund Portfolio SC2		19,686		152,221
Fidelity Equity Income SC2		578		1,288
Fidelity Freedom Fund - 2015 Maturity SC2		152		243
Fidelity Freedom Fund - 2020 Maturity SC2		297		68
Fidelity Growth Portfolio SC2		437		605
Fidelity Index 500 Portfolio SC2		352,252		843,413
Fidelity Investment Grade Bonds SC2		40,672		33,128
Fidelity Mid Cap SC2		82,542		193,709
Fidelity VIP Asset Manager Growth Service 2		79		0	*
Fidelity VIP Asset Manager Service 2		117		62
Fidelity VIP Balanced Service 2		16,836		2,410
Fidelity VIP Bond Index Port		588		95
Fidelity VIP Energy Service 2		1,345		401
Fidelity VIP Extended Market Index Portfolio		57		0	*
Fidelity VIP Fundsmanager 20% Service 2		1,263		674
Fidelity VIP Fundsmanager 60% Service 2		11		10
Fidelity VIP Fundsmanager 85% Service 2		531		1
Fidelity VIP Health Care Port Service 2		899		116
Fidelity VIP International Index Port		281		70
Fidelity VIP Target Volatility Service 2		43		2
Fidelity VIP Technology Initial		216		21
Fidelity VIP Total Market Index Port		1,777		207
Fidelity VIP Utilities Initial		102		35
Fidelity VIP Value Strategies Service 2		733		134
Franklin Dynatech VIP Fund		22,024		21,027
Franklin Income VIP CL 2		32,359		96,519
Franklin Multi-Asset Dynamic Multi-Strat VIT		887		17,383
Franklin Mutual Global Discovery VIP CL 2		626		794
Franklin Mutual Shares VIP CL 2		136,471		290,997
Franklin Rising Dividend VIP CL 2		265,143		279,531
Franklin Small Cap Value VIP CL 2		20,310		25,562
Franklin Small-Mid Cap Growth VIP CL 2		10,045		9,743
Franklin Strategic Income VIP CL 2		951		738
Franklin US Government Securities VIP CL 2		15,023		53,403
Goldman Sachs Global Trends Allocation Fund SC		1,796		1,399
Goldman Sachs International Equity Insights		1,125		2,578
Goldman Sachs International Equity Insights SC		5,845		8,928
Goldman Sachs Large Cap Value		4,196		5,210
Goldman Sachs Large Cap Value Fund SC		15,447		26,739
Goldman Sachs Mid Cap Value		1,000		939

144

(in thousands)

Subaccount	Purchases		Sales
Goldman Sachs Mid Cap Value SC	$	92,959	$	138,183
Goldman Sachs Small Cap Equity Insights		583		2,601
Goldman Sachs Small Cap Equity Insights SC		513		1,217
Goldman Sachs Strategic Growth		5,843		3,581
Goldman Sachs Strategic Growth SC		24,308		86,052
Goldman Sachs US Equity Insights		874		4,457
Goldman Sachs US Equity Insights SC		29		78
Goldman Sachs VIT Core Fixed Income Fund SC		1,818		2,885
Goldman Sachs VIT Mid Cap Growth Fund SC		6,467		10,628
Guggenheim Floating Rate Strategies (Series F)		1,065		1,172
Guggenheim Global Managed Futures Strategy		457		279
Guggenheim Long Short Equity		22		37
Guggenheim Multi-Hedge Strategies		129		183
Invesco V.I. American Franchise I		1,561		650
Invesco V.I. American Franchise II		920		273
Invesco V.I. American Value II		41,410		43,881
Invesco V.I. Balanced Risk Allocation II		12,023		11,695
Invesco V.I. Capital Appreciation Fund I		2,696		1,096
Invesco V.I. Capital Appreciation Fund II		11,901		36,183
Invesco V.I. Comstock I		1,380		3,501
Invesco V.I. Comstock II		55,413		79,645
Invesco V.I. Conservative Balance II		12,764		478
Invesco V.I. Discovery Mid Cap Growth Fund I		1,076		371
Invesco V.I. Discovery Mid Cap Growth Fund II		11,160		9,660
Invesco V.I. Equity and Income II		46,936		120,604
Invesco V.I. Global Fund I		1,359		750
Invesco V.I. Global Fund II		56,197		98,323
Invesco V.I. Global Real Estate II		10,603		20,287
Invesco V.I. Global Strategic Income Fund I		160		958
Invesco V.I. Global Strategic Income Fund II		3,760		28,543
Invesco V.I. Government Securities II		7,954		18,022
Invesco V.I. Growth & Income I		3,140		3,193
Invesco V.I. Growth & Income II		325,989		527,040
Invesco V.I. EQV International Equity Fund II		12,040		17,179
Invesco V.I. Main Street Fund I		2,950		1,114
Invesco V.I. Main Street Fund II		47,502		33,932
Invesco V.I. Main Street Small Cap Fund II		709		31
Invesco V.I. Small Cap Equity II		4,074		5,582
Invesco V.I. U.S. Government Money Portfolio I		2,993,579		1,662,890
Janus Henderson Balanced Service Class		772		2
Janus Henderson Forty - Service Class		77		13
Janus Henderson Global Technology - Service Class		49		13
Janus Henderson Overseas Portfolio - Service Class		47		12
Lord Abbett Bond Debenture VC		48,602		55,854
Lord Abbett Dividend Growth Fund		43,801		52,775
Lord Abbett Growth & Income VC		7,566		11,079
Lord Abbett Growth Opportunities VC		8,181		16,055
Lord Abbett Mid Cap Stock VC		7,721		14,841

145

(in thousands)

Subaccount	Purchases			Sales
Lord Abbett Series Fundamental Equity VC	$	65,997		$	144,919
Lord Abbett Series Short Duration Income VC		2,259			204
MFS Growth Series IC		935			860
MFS Growth Series SC		8,909			4,150
MFS Investors Trust IC		815			1,193
MFS Investors Trust SC		6,728			6,975
MFS New Discovery IC		803			419
MFS New Discovery SC		27,421			4,010
MFS Research IC		688			907
MFS Research SC		558			547
MFS Total Return IC		1,955			2,502
MFS Total Return SC		5,178			7,248
MFS Utilities IC		233			251
MFS Utilities SC		1,575			5,727
MFS VIT II Emerging Markets Equity SC		70			42
MFS VIT II International Value SC		2,131			2,254
MFS VIT II MA Investors Growth Stock IC		286			270
MFS VIT II MA Investors Growth Stock SC		4,958			4,060
MFS VIT Total Return Bond SC		17,080			38,194
MFS VIT Value SC		12,612			34,538
Morgan Stanley VIF Core Plus Fixed Income Portfolio		40			0	*
Morgan Stanley VIF Global Real Estate II		1,373			1,494
Morgan Stanley VIF Global Strategy Portfolio		17			0	*
PIMCO Income Advisor		499			197
PIMCO VIT All Asset Advisor		598			5,024
PIMCO VIT Commodity Real Return Strategy Advantage		6			0	*
PIMCO VIT Global Diversified Allocation Portfolio		2,628			1,301
PIMCO VIT High Yield Advance		238			154
PIMCO VIT Long-Term US Government Advisor		3,484			4,262
PIMCO VIT Low Duration Advisor		10,388			20,719
PIMCO VIT Real Return Advisor		23,697			36,559
PIMCO VIT Short-Term Advisor		17,769			13,745
PIMCO VIT Total Return Advisor		36,243			72,091
Protective Life Dynamic Allocation Series – Conservative		11,392			8,683
Protective Life Dynamic Allocation Series – Growth		7,588			11,383
Protective Life Dynamic Allocation Series – Moderate		198,541			25,888
Royce Capital Fund Micro-Cap SC		3,345			9,124
Royce Capital Fund Small-Cap SC		111,626			133,773
Rydex Commodities Strategy		2			4
Rydex Inverse Government Long Bond		0	*		3
T. Rowe Price All-Cap Opportunities Portfolio		794			304
T. Rowe Price Blue Chip Growth Portfolio II		5,189			944
T. Rowe Price Health Sciences Portfolio II		2,028			510
T. Rowe Price Moderate Allocation		390			17
Templeton Developing Markets VIP CL 2		942			477
Templeton Foreign VIP CL 2		17,806			13,602
Templeton Global Bond VIP Fund CL 2		3,512			36,388
Templeton Growth VIP CL 2		4,766			11,050
VanEck Global Hard Asset		4			37
Vanguard VIF Balanced		198			17
Vanguard VIF Capital Growth		181			83
Vanguard VIF Conservative Allocation		993			7

146

(in thousands)

Subaccount	Purchases		Sales
Vanguard VIF Diversified Val	$	59	$	65
Vanguard VIF Equity Income		251		46
Vanguard VIF Equity Index		711		48
Vanguard VIF Global Bond Index		107		17
Vanguard VIF Growth		786		26
Vanguard VIF High Yield Bond		86		32
Vanguard VIF International		447		14
Vanguard VIF Mid-Cap Index		355		72
Vanguard VIF Moderate Allocation		162		6
Vanguard VIF Money Market		2,013		467
Vanguard VIF Real Estate Index		163		12
Vanguard VIF Short Term Investment Grade		488		228
Vanguard VIF Total Bond Market Index		869		106
Vanguard VIF Total International Stock Market Index		731		13
Vanguard VIF Total Stock Mkt Index		1,142		83
Western Asset Core Plus VIT II		2,326		574

* The Subaccount’s activity did not round to one thousand

4.	CHANGES IN UNITS OUTSTANDING

The change in units outstanding for years or periods ended December 31, 2022 and 2021 were as follows:

(in thousands)	2022								2021
Subaccount	Units Issued		Units Redeemed			Net Increase (Decrease)			Units Issued		Units Redeemed			Net Increase (Decrease)
AB VPS Growth And Income B		118		58			60			13		0	*		13
AB VPS Large Cap Growth B		986		72			914			76		5			71
AB VPS Small Cap Growth B		41		2			39			11		0	*		10
AB VPS Small/Mid Cap Value B		88		61			27			32		0	*		32
American Century VP Balanced I		8		0	*		8			N/A		N/A			N/A
American Funds IS Asset Allocation Class 2		1,044		1,016			28			999		407			592
American Funds IS Asset Allocation Class 4		419		560			(141	)		865		234			631
American Funds IS Capital Income Builder Class 2		117		45			72			252		16			236
American Funds IS Capital Income Builder Class 4		176		196			(20	)		118		66			52
American Funds IS Capital World Growth And Income Fund 2		54		27			27			225		31			194
American Funds IS Capital World Growth And Income Fund 4		37		39			(2	)		86		30			55
American Funds IS Global Bond 2		59		1			58			N/A		N/A			N/A
American Funds IS Global Growth Class 2		1,374		443			931			1,343		650			693
American Funds IS Global Growth Class 4		304		226			78			184		148			36
American Funds IS Global Small Capitalization Class 2		180		45			135			203		30			173
American Funds IS Global Small Capitalization Class 4		18		1			17			3		5			(2	)
American Funds IS Growth – Income Class 2		483		109			374			663		34			629
American Funds IS Growth – Income Class 4		320		341			(21	)		236		135			101
American Funds IS Growth Class 2		1,133		209			924			1,255		151			1,104
American Funds IS Growth Class 4		412		780			(368	)		1,074		459			615
American Funds IS High-Income Bond 2		62		6			56			2		-			2

147

(in thousands)	2022									2021
Subaccount	Units Issued			Units Redeemed			Net Increase (Decrease)			Units Issued		Units Redeemed			Net Increase (Decrease)
American Funds IS International Class 2		157			52			105			326		34			292
American Funds IS International Class 4		21			1			20			4		1			3
American Funds IS International Growth And Income 2		112			1			111			1		-			1
American Funds IS New World Class 2		160			59			101			308		33			275
American Funds IS New World Class 4		11			4			7			6		6			(0	)*
American Funds IS The Bond Fund Of America 2		2,014			251			1,763			1,184		43			1,141
American Funds IS The Bond Fund Of America 4		374			222			152			336		103			232
American Funds IS U.S. Government Securities Fund 2		61			52			9			232		62			170
American Funds IS U.S. Government Securities Fund 4		69			111			(42	)		117		319			(201	)
American Funds IS Washington Mutual Investors Fund 2		514			338			176			981		148			834
American Funds IS Washington Mutual Investors Fund 4		83			69			14			40		26			13
Blackrock 60/40 Target Allocation ETF V.I. Fund		362			80			282			65		8			57
Blackrock Global Allocation V.I. III		1,517			84			1,433			92		8			84
Blackrock International V.I. I		62			13			49			8		-			8
Calvert VP SRI Balanced		0	*		9			(9	)		4		7			(3	)
Clearbridge Variable Dividend Strategy II		17			3			14			4		0	*		4
Clearbridge Variable Large Cap Growth II		17			10			7			11		1			11
ClearBridge Variable Mid Cap Portfolio Class II		2,384			3,348			(964	)		234		540			(307	)
ClearBridge Variable Small Cap Growth II		810			864			(54	)		274		391			(117	)
Columbia VP Balanced 2		173			124			49			141		1			140
Columbia VP Emerging Markets Bond 2		13			0	*		13			N/A		N/A			N/A
Columbia VP Intermediate Bond 2		86			12			74			36		0	*		36
Columbia VP Limited Duration Credit 2		50			24			26			2		-			2
Columbia VP Select Mid Cap Value 2		58			6			52			7		0	*		7
Columbia VP Strategic Income 2		661			27			634			40		1			39
DFA VA Equity Allocation Portfolio Instl		7			0	*		7			2		0	*		2
DFA VA Global Bond		23			5			18			70		0	*		70
DFA VA Global Moderate Allocation Instl		24			9			15			28		0	*		28
DFA VA International Small		31			1			30			27		0	*		27
DFA VA International Value		45			3			42			31		0	*		30
DFA VA Short-Term Fixed		56			9			47			43		0	*		43
DFA VA US Large Value		76			11			65			93		1			92
DFA VA US Targeted Value		35			3			32			37		1			36
Fidelity Contrafund Portfolio SC2		7,986			11,853			(3,867	)		1,172		1,798			(627	)
Fidelity Equity Income SC2		11			41			(30	)		13		52			(39	)
Fidelity Freedom Fund - 2015 Maturity SC2		1			12			(11	)		16		4			12
Fidelity Freedom Fund - 2020 Maturity SC2		1			2			(1	)		15		25			(10	)
Fidelity Growth Portfolio SC2		5			13			(8	)		5		10			(5	)
Fidelity Index 500 Portfolio SC2		14,800			28,638			(13,838	)		3,315		3,338			(23	)
Fidelity Investment Grade Bonds SC2		2,699			3,166			(467	)		4,964		2,299			2,665
Fidelity Mid Cap SC2		11,100			15,491			(4,391	)		486		2,637			(2,150	)
Fidelity VIP Asset Manager Growth Service 2		9			0	*		9			N/A		N/A			N/A
Fidelity VIP Asset Manager Service 2		12			6			6			7		0	*		7
Fidelity VIP Balanced Service 2		1,962			361			1,601			404		9			395
Fidelity VIP Bond Index Port		67			11			56			2		-			2
Fidelity VIP Energy Service 2		83			25			58			30		3			26
Fidelity VIP Extended Market Index Portfolio		7			0	*		7			N/A		N/A			N/A
Fidelity VIP Fundsmanager 20% Service 2		125			69			56			55		1			54
Fidelity VIP Fundsmanager 60% Service 2		1			1			-			N/A		N/A			N/A
Fidelity VIP Fundsmanager 85% Service 2		59			0	*		59			N/A		N/A			N/A

148

(in thousands)	2022								2021
Subaccount	Units Issued		Units Redeemed			Net Increase (Decrease)			Units Issued		Units Redeemed			Net Increase (Decrease)
Fidelity VIP Health Care Port Service 2		169		84			85			20		2			18
Fidelity VIP International Index Port		32		7			25			2		-			2
Fidelity VIP Target Volatility Service 2		4		0	*		4			6		0	*		6
Fidelity VIP Technology Initial		28		3			25			N/A		N/A			N/A
Fidelity VIP Total Market Index Port		195		23			172			N/A		N/A			N/A
Fidelity VIP Utilities Initial		9		3			6			N/A		N/A			N/A
Fidelity VIP Value Strategies Service 2		72		13			59			N/A		N/A			N/A
Franklin Dynatech VIP Fund		2,176		2,203			(27	)		640		371			269
Franklin Income VIP CL 2		4,481		8,187			(3,706	)		505		1,462			(957	)
Franklin Multi-Asset Dynamic Multi-Strat VIT		63		1,527			(1,464	)		101		203			(102	)
Franklin Mutual Global Discovery VIP CL 2		23		65			(42	)		180		40			140
Franklin Mutual Shares VIP CL 2		18,637		28,315			(9,678	)		1,296		6,198			(4,903	)
Franklin Rising Dividend VIP CL 2		12,900		13,879			(979	)		752		2,048			(1,296	)
Franklin Small Cap Value VIP CL 2		1,141		1,509			(368	)		293		598			(305	)
Franklin Small-Mid Cap Growth VIP CL 2		1,086		1,214			(128	)		260		504			(245	)
Franklin Strategic Income VIP CL 2		72		70			2			161		43			118
Franklin US Government Securities VIP CL 2		1,449		5,557			(4,108	)		6,481		4,826			1,655
Goldman Sachs Global Trends Allocation Fund SC		137		112			25			69		82			(13	)
Goldman Sachs International Equity Insights		56		150			(94	)		32		187			(155	)
Goldman Sachs International Equity Insights SC		1,025		1,306			(281	)		266		824			(558	)
Goldman Sachs Large Cap Value		22		129			(107	)		24		172			(148	)
Goldman Sachs Large Cap Value Fund SC		463		1,300			(837	)		42		872			(830	)
Goldman Sachs Mid Cap Value		3		22			(19	)		14		26			(12	)
Goldman Sachs Mid Cap Value SC		6,061		8,421			(2,360	)		223		1,371			(1,148	)
Goldman Sachs Small Cap Equity Insights		9		40			(31	)		10		68			(58	)
Goldman Sachs Small Cap Equity Insights SC		31		55			(24	)		14		114			(100	)
Goldman Sachs Strategic Growth		30		59			(29	)		20		101			(82	)
Goldman Sachs Strategic Growth SC		4,821		6,548			(1,727	)		229		997			(768	)
Goldman Sachs US Equity Insights		9		58			(49	)		11		60			(50	)
Goldman Sachs US Equity Insights SC		1		2			(1	)		2		4			(2	)
Goldman Sachs VIT Core Fixed Income Fund SC		214		330			(116	)		657		245			413
Goldman Sachs VIT Mid Cap Growth Fund SC		628		770			(142	)		101		365			(264	)
Guggenheim Floating Rate Strategies (Series F)		95		104			(9	)		47		77			(31	)
Guggenheim Global Managed Futures Strategy		38		24			14			8		160			(153	)
Guggenheim Long Short Equity		2		3			(1	)		5		7			(3	)
Guggenheim Multi-Hedge Strategies		10		15			(5	)		7		53			(47	)
Invesco V.I. American Franchise I		8		33			(25	)		4		66			(62	)
Invesco V.I. American Franchise II		5		10			(5	)		2		19			(17	)
Invesco V.I. American Value II		2,398		3,024			(626	)		740		1,068			(328	)
Invesco V.I. Balanced Risk Allocation II		416		756			(340	)		401		696			(295	)
Invesco V.I. Capital Appreciation Fund I		3		21			(18	)		4		17			(13	)
Invesco V.I. Capital Appreciation Fund II		2,199		3,093			(894	)		80		361			(281	)
Invesco V.I. Comstock I		8		72			(64	)		19		85			(66	)
Invesco V.I. Comstock II		2,552		3,367			(815	)		367		1,284			(917	)
Invesco V.I. Conservative Balance II		1,414		85			1,329			109		2			107
Invesco V.I. Discovery Mid Cap Growth Fund I		3		8			(5	)		4		13			(9	)
Invesco V.I. Discovery Mid Cap Growth Fund II		1,063		1,367			(304	)		66		299			(233	)
Invesco V.I. Equity and Income II		6,667		10,401			(3,734	)		285		1,516			(1,231	)
Invesco V.I. Global Fund I		3		12			(9	)		5		17			(13	)
Invesco V.I. Global Fund II		8,506		10,956			(2,450	)		185		1,602			(1,417	)

149

(in thousands)	2022								2021
Subaccount	Units Issued		Units Redeemed			Net Increase (Decrease)			Units Issued			Units Redeemed			Net Increase (Decrease)
Invesco V.I. Global Real Estate II		1,776		2,491			(715	)		183			194			(12	)
Invesco V.I. Global Strategic Income Fund I		9		44			(35	)		15			48			(33	)
Invesco V.I. Global Strategic Income Fund II		892		2,376			(1,484	)		2,434			2,203			231
Invesco V.I. Government Securities II		810		1,901			(1,091	)		3,470			1,345			2,125
Invesco V.I. Growth & Income I		9		77			(68	)		26			96			(70	)
Invesco V.I. Growth & Income II		22,313		30,586			(8,273	)		205			5,161			(4,957	)
Invesco V.I. EQV International Equity Fund II		5,506		6,010			(504	)		2,242			4,179			(1,938	)
Invesco V.I. Main Street Fund I		5		28			(23	)		3			28			(24	)
Invesco V.I. Main Street Fund II		1,528		2,173			(645	)		1,128			674			454
Invesco V.I. Main Street Small Cap Fund II		73		5			68			9			-			9
Invesco V.I. Small Cap Equity II		726		896			(170	)		193			320			(127	)
Invesco V.I. U.S. Government Money Portfolio I		851,095		663,318			187,777			49,698			35,473			14,225
Janus Henderson Balanced Service Class		87		1			86			N/A			N/A			N/A
Janus Henderson Forty - Service Class		10		2			8			N/A			N/A			N/A
Janus Henderson Global Technology - Service Class		6		2			4			N/A			N/A			N/A
Janus Henderson Overseas Portfolio - Service Class		5		2			3			N/A			N/A			N/A
Lord Abbett Bond Debenture VC		3,250		3,860			(610	)		5,116			3,366			1,750
Lord Abbett Dividend Growth Fund		2,004		2,680			(676	)		794			624			170
Lord Abbett Growth & Income VC		141		424			(283	)		27			434			(407	)
Lord Abbett Growth Opportunities VC		3,819		4,135			(316	)		258			1,210			(952	)
Lord Abbett Mid Cap Stock VC		576		952			(376	)		101			416			(315	)
Lord Abbett Series Fundamental Equity VC		8,133		12,025			(3,892	)		103			1,697			(1,594	)
Lord Abbett Series Short Duration Income VC		232		23			209			50			27			24
MFS Growth Series IC		6		14			(8	)		5			20			(15	)
MFS Growth Series SC		118		121			(3	)		43			236			(193	)
MFS Investors Trust IC		1		27			(26	)		3			24			(21	)
MFS Investors Trust SC		37		201			(164	)		19			356			(337	)
MFS New Discovery IC		2		6			(4	)		4			7			(3	)
MFS New Discovery SC		236		138			98			45			222			(177	)
MFS Research IC		1		19			(18	)		3			21			(17	)
MFS Research SC		3		12			(9	)		6			20			(13	)
MFS Total Return IC		9		66			(57	)		21			86			(66	)
MFS Total Return SC		28		245			(217	)		79			244			(164	)
MFS Utilities IC		2		4			(2	)		0	*		7			(7	)
MFS Utilities SC		9		147			(138	)		28			123			(95	)
MFS VIT II Emerging Markets Equity SC		5		4			1			2			4			(2	)
MFS VIT II International Value SC		103		140			(37	)		40			197			(157	)
MFS VIT II MA Investors Growth Stock IC		3		11			(8	)		3			13			(10	)
MFS VIT II MA Investors Growth Stock SC		54		189			(135	)		14			328			(315	)
MFS VIT Total Return Bond SC		1,334		3,805			(2,471	)		3,723			3,932			(208	)
MFS VIT Value SC		68		1,101			(1,033	)		101			1,419			(1,318	)
Morgan Stanley VIF Core Plus Fixed Income Portfolio		4		-			4			N/A			N/A			N/A
Morgan Stanley VIF Global Real Estate II		101		131			(30	)		40			119			(79	)
Morgan Stanley VIF Global Strategy Portfolio		2		0	*		2			N/A			N/A			N/A
PIMCO Income Advisor		54		24			30			47			11			36
PIMCO VIT All Asset Advisor		470		813			(343	)		38			100			(61	)
PIMCO VIT Commodity Real Return Strategy Advantage		1		0	*		1			N/A			N/A			N/A
PIMCO VIT Global Diversified Allocation Portfolio		61		107			(46	)		66			91			(25	)
PIMCO VIT High Yield Advance		25		17			8			13			0	*		12

150

(in thousands)	2022									2021
Subaccount	Units Issued			Units Redeemed			Net Increase (Decrease)			Units Issued			Units Redeemed			Net Increase (Decrease)
PIMCO VIT Long-Term US Government Advisor		303			363			(60	)		644			503			140
PIMCO VIT Low Duration Advisor		1,097			2,212			(1,115	)		3,731			1,436			2,296
PIMCO VIT Real Return Advisor		1,043			3,352			(2,309	)		3,165			2,980			185
PIMCO VIT Short-Term Advisor		1,866			1,490			376			1,449			1,308			141
PIMCO VIT Total Return Advisor		4,075			7,864			(3,789	)		11,476			8,052			3,424
Protective Life Dynamic Allocation Series – Conservative		966			764			202			1,100			859			241
Protective Life Dynamic Allocation Series – Growth		590			845			(255	)		194			830			(636	)
Protective Life Dynamic Allocation Series – Moderate		19,869			3,564			16,305			19,120			2,030			17,090
Royce Capital Fund Micro-Cap SC		1,183			1,640			(457	)		98			526			(428	)
Royce Capital Fund Small-Cap SC		14,009			15,482			(1,473	)		307			2,649			(2,342	)
Rydex Commodities Strategy		0	*		1			(1	)		-			1			(1	)
Rydex Inverse Government Long Bond		0	*		0	*		(0	)*		0	*		0	*		0	*
T. Rowe Price All-Cap Opportunities Portfolio		86			34			52			10			-			10
T. Rowe Price Blue Chip Growth Portfolio II		721			159			562			242			6			235
T. Rowe Price Health Sciences Portfolio II		249			78			171			99			5			94
T. Rowe Price Moderate Allocation		45			2			43			N/A			N/A			N/A
Templeton Developing Markets VIP CL 2		1,787			1,766			21			675			1,453			(778	)
Templeton Foreign VIP CL 2		3,274			2,997			277			990			2,673			(1,683	)
Templeton Global Bond VIP Fund CL 2		827			3,628			(2,801	)		4,062			2,705			1,358
Templeton Growth VIP CL 2		1,731			2,117			(386	)		521			1,869			(1,347	)
VanEck Global Hard Asset		0	*		1			(1	)		-			2			(2	)
Vanguard VIF Balanced		10			1			9			60			0	*		59
Vanguard VIF Capital Growth		11			6			5			15			2			13
Vanguard VIF Conservative Allocation		94			0	*		94			30			0	*		30
Vanguard VIF Diversified Val		4			4			-			6			1			5
Vanguard VIF Equity Income		11			3			8			47			3			44
Vanguard VIF Equity Index		53			3			50			61			1			60
Vanguard VIF Global Bond Index		12			2			10			15			1			14
Vanguard VIF Growth		48			2			46			50			1			49
Vanguard VIF High Yield Bond		8			3			5			11			0	*		10
Vanguard VIF International		37			1			36			45			3			42
Vanguard VIF Mid-Cap Index		20			5			15			56			4			52
Vanguard VIF Moderate Allocation		10			0	*		10			63			13			50
Vanguard VIF Money Market		200			47			153			117			84			32
Vanguard VIF Real Estate Index		11			1			10			20			1			18
Vanguard VIF Short Term Investment Grade		48			23			25			145			5			141
Vanguard VIF Total Bond Market Index		96			12			84			94			5			88
Vanguard VIF Total International Stock Market Index		65			1			64			43			1			42
Vanguard VIF Total Stock Mkt Index		82			6			76			61			3			57
Western Asset Core Plus VIT II		267			73			194			232			5			227

* The Subaccount’s activity did not round to one thousand

“N/A” indicates not applicable

151

5.	EXPENSES AND RELATED PARTY TRANSACTIONS

The fees and charges below are the current expenses deducted by the Subaccount from either the net unit value or from the Contract as a redemption of units. Fees and charges may vary based on factors such as the product purchased, optional benefits chosen, benefit base, asset base, net amount at risk, death benefit option elected, a Contract’s total asset value, age of Contract, surrender amount, if a surrender is requested during the period specified, Subaccounts selected, transaction amount, and/or transaction frequency. The fees and charges are recorded, as applicable, to the respective Subaccount in the Separate Account. Redemption of units deductions are made to the individual Contracts in accordance with the terms which govern each annuity, as set forth in the Contract.

Expense Type	Range
Administrative Fee
This fee is assessed to reimburse the Company for expenses incurred in the administration of the Contract and the Separate Account. The fee is deducted daily, assessed through a reduction of net unit values, and recorded as Mortality and expense risk and admin in the Statements of Operations.	a daily charge amounting to a per annum aggregate of 0.10% - 0.15% of the average daily net assets of the variable account

Contract Maintenance Charge
This charge is assessed to reimburse the Company for expenses incurred in the administration of the Contract and the Separate Account. The charge is deducted annually, assessed through a redemption of units, and recorded as Contract maintenance charges in the Statements of Changes in Net Assets.	$0 - $50 annually

Mortality and Expense Risk Fee
This fee is assessed to reimburse the Company for assuming mortality and expense risks. The fee is deducted daily, assessed through a reduction of net unit values, and recorded as Mortality and expense risk and admin in the Statements of Operations.	a daily fee amounting to a per annum aggregate of 0.20% - 1.65% of the average daily net assets of the variable account

Deferred Sales Charge
This charge is assessed to reimburse the Company for some of the costs of distributing the Contracts. The charge is deducted quarterly, assessed through a redemption of units, and recorded as Contract maintenance charges within the Statements of Changes in Net Assets.	0.00% - 0.70% of cumulative purchase contributions

Surrender Charge (Contingent Deferred Sales Charge)
This charge is assessed to reimburse the Company for some of the costs of distributing the Contracts. The charge is deducted at surrender, assessed through a redemption of units, and recorded as Contract maintenance charges within the Statements of Changes in Net Assets.	0.00% - 8.50% of surrendered amount

Transfer Charge
Currently there is no charge assessed for transfers; however, the Company has reserved the right to charge for transfers as reimbursement for costs incurred when transferring funds. The charge would be deducted upon transfer, assessed through a redemption of units, and recorded as Contract owners’ benefits within the Statements of Changes in Net Assets.	$25 per transfer, after the first 12 transfers in any contract year

Charge for Optional Benefits
This charge, if applicable, is assessed to reimburse the Company for costs and risks stemming from optional living and death benefits elected by the Contract owner. The charge is deducted monthly, assessed through a redemption of units, and recorded as Contract maintenance charges within the Statements of Changes in Net Assets.	0.10% - 2.20% of benefit base 0.15% - 0.45% of asset base 1.0% - 2.2% of floored asset base $0.25 - $18.94 per $1,000 on net amount at risk

152

The Company offers a loan privilege to certain contract owners. Such contract owners may obtain loans using the Contract’s value as the only security for the loan. Loans are subject to provisions of The Internal Revenue Code of 1986, as amended, and to applicable retirement program rules.

153

FINANCIAL HIGHLIGHTS

The Company sells a number of variable annuity products that are funded by the Separate Account. These products have unique combinations of features and fees that are charged against the Contract owner’s account. Differences in the fee structures result in a variety of unit values, expense ratios and total returns. The following tables were developed by determining which products offered by the Company and funded by the Separate Account have the highest and lowest expense ratios. The summaries may not reflect or directly equate to the minimum and maximum Contract charges offered by the Company, as Contract owners may not have selected all available and applicable Contract options for or during the periods presented.

A summary of the units outstanding, unit fair values, net assets for variable annuity Contracts, net investment income ratios, the expense ratios, excluding expenses of the underlying funds, and total returns for each of the five years in the period ended December 31, 2022 were as follows:

	As of December 31								For the period ended December 31
Subaccount	Units (000’s)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000’s)		Investment Income Ratio ^(a)			Expense Ratio ^(b)						Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
			Low ^(d)		High ^(d)							Low ^(d)			High ^(d)			Low ^(d)			High ^(d)

AB VPS Growth And Income B
2022		73	$	9.75	$	11.06	$	745		0.99	%		0.75	%		1.30	%		(5.13	)%		(5.66	)%
2021		13		11.75		11.72		147		0.35	%		1.00	%		1.30	%		5.26	%		4.99	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
AB VPS Large Cap Growth B
2022		984		9.44		9.27		7,458		0.00	%		0.30	%		1.30	%		(28.90	)%		(29.61	)%
2021		71		10.37		13.17		857		0.00	%		0.75	%		1.30	%		(6.33	)%		18.92	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
AB VPS Small Cap Growth B
2022		49		6.45		6.33		299		0.00	%		0.30	%		1.30	%		(39.45	)%		(40.05	)%
2021		10		10.65		10.56		110		0.00	%		0.30	%		1.30	%		11.44	%		10.52	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-

154

	As of December 31								For the period ended December 31
Subaccount	Units (000’s)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000’s)		Investment Income Ratio ^(a)			Expense Ratio ^(b)						Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
			Low ^(d)		High ^(d)							Low ^(d)			High ^(d)			Low ^(d)			High ^(d)

AB VPS Small/Mid Cap Value B
2022		58	$	8.73	$	9.43	$	512		0.44	%		0.75	%		1.30	%		(16.45	)%		(16.91	)%
2021		32		11.37		11.34		358		0.56	%		1.00	%		1.30	%		5.35	%		5.09	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
American Century VP Balanced I
2022		8		8.82		8.82		71		1.54	%		1.20	%		1.20	%		(4.05	)%		(4.05	)%
2021		-		-		-		-		-			-			-			-			-
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
American Funds IS Asset Allocation Class 2
2022		4,193		24.70		22.23		81,196		1.78	%		0.60	%		1.70	%		(13.92	)%		(14.87	)%
2021		4,164		28.70		26.12		100,498		1.58	%		0.60	%		1.70	%		14.41	%		13.15	%
2020		3,572		11.78		32.86		85,665		1.57	%		0.60	%		1.70	%		10.55	%		11.78	%
2019		3,490		20.77		29.46		79,883		1.96	%		0.60	%		1.70	%		19.17	%		20.50	%
2018		3,522		17.35		24.50		67,844		1.63	%		0.60	%		1.70	%		(6.23	)%		(5.18	)%
American Funds IS Asset Allocation Class 4
2022		2,215		13.92		14.44		30,864		1.59	%		1.00	%		1.30	%		(14.52	)%		(14.78	)%
2021		2,356		16.28		16.95		38,782		1.52	%		1.00	%		1.30	%		13.69	%		13.35	%
2020		1,725		14.32		14.95		25,063		1.59	%		1.00	%		1.30	%		10.70	%		11.04	%
2019		1,073		12.90		13.51		14,139		2.00	%		1.00	%		1.30	%		19.36	%		19.72	%
2018		611		10.77		11.32		6,793		1.64	%		1.00	%		1.30	%		(6.08	)%		(5.79	)%
American Funds IS Capital Income Builder Class 2
2022		611		11.46		12.55		7,250		2.82	%		0.75	%		0.90	%		(7.82	)%		(7.96	)%
2021		539		12.43		13.64		6,985		3.01	%		0.75	%		0.90	%		14.08	%		13.91	%
2020		304		10.90		11.98		3,559		2.70	%		0.75	%		0.90	%		3.54	%		3.70	%
2019		225		11.57		11.57		2,607		2.96	%		0.90	%		0.90	%		16.83	%		16.83	%
2018		208		9.90		9.90		2,061		3.78	%		0.90	%		0.90	%		7.92	%		7.92	%

155

	As of December 31								For the period ended December 31
Subaccount	Units (000’s)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000’s)		Investment Income Ratio ^(a)			Expense Ratio ^(b)						Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
			Low ^(d)		High ^(d)							Low ^(d)			High ^(d)			Low ^(d)			High ^(d)

American Funds IS Capital Income Builder Class 4
2022		520	$	11.60	$	12.09	$	6,478		2.50	%		0.30	%		1.30	%		(7.65	)%		(8.58	)%
2021		540		12.56		13.23		7,377		2.57	%		0.30	%		1.30	%		14.34	%		13.19	%
2020		488		11.69		12.33		5,878		2.87	%		1.00	%		1.30	%		2.76	%		3.07	%
2019		290		11.37		11.96		3,369		2.62	%		1.00	%		1.30	%		16.09	%		16.44	%
2018		169		9.80		10.27		1,673		3.32	%		1.00	%		1.30	%		(8.46	)%		(8.18	)%
American Funds IS Capital World Growth And Income Fund 2
2022		535		10.92		13.65		6,143		2.23	%		0.75	%		0.90	%		(17.95	)%		(18.08	)%
2021		508		13.30		16.66		7,143		1.93	%		0.75	%		0.90	%		13.92	%		13.74	%
2020		314		11.68		14.65		4,029		1.34	%		0.75	%		0.90	%		7.75	%		7.92	%
2019		155		10.82		13.59		1,990		1.80	%		0.75	%		0.90	%		4.92	%		29.96	%
2018		98		10.46		10.46		1,026		2.83	%		0.90	%		0.90	%		(10.45	)%		10.45	%
American Funds IS Capital World Growth And Income Fund 4
2022		218		11.07		13.15		2,977		1.95	%		0.30	%		1.30	%		(17.82	)%		(18.64	)%
2021		221		13.47		16.16		3,791		1.63	%		0.30	%		1.30	%		14.12	%		12.98	%
2020		166		14.30		15.35		2,519		0.97	%		1.00	%		1.30	%		7.14	%		7.46	%
2019		169		13.35		14.28		2,390		2.11	%		1.00	%		1.30	%		29.03	%		29.43	%
2018		102		10.35		11.03		1,122		2.52	%		1.00	%		1.30	%		(11.07	)%		(10.79	)%
American Funds IS Global Bond 2
2022		59		7.90		7.90		463		0.34	%		0.75	%		0.75	%		(18.31	)%		(18.31	)%
2021		-		-		-		-		-			-			-			-			-
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
American Funds IS Global Growth Class 2
2022		6,061		12.29		16.86		90,605		0.64	%		0.75	%		0.90	%		(25.30	)%		(25.41	)%
2021		5,130		16.46		22.60		105,373		0.34	%		0.75	%		0.90	%		15.55	%		15.37	%
2020		4,437		14.24		19.59		84,204		0.33	%		0.75	%		0.90	%		29.29	%		29.49	%
2019		4,697		11.00		15.15		71,124		1.15	%		0.75	%		0.90	%		4.68	%		34.06	%
2018		4,911		11.30		11.30		55,496		0.73	%		0.90	%		0.90	%		(9.87	)%		(9.87	)%

156

	As of December 31								For the period ended December 31
Subaccount	Units (000’s)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000’s)		Investment Income Ratio ^(a)			Expense Ratio ^(b)						Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
			Low ^(d)		High ^(d)							Low ^(d)			High ^(d)			Low ^(d)			High ^(d)

American Funds IS Global Growth Class 4
2022		952	$	10.30	$	16.04	$	14,451		0.40	%		0.30	%		1.30	%		(25.14	)%		(25.89	)%
2021		874		13.76		21.64		18,614		0.22	%		0.30	%		1.30	%		15.79	%		14.63	%
2020		838		18.40		18.88		15,643		0.15	%		1.00	%		1.30	%		28.48	%		28.87	%
2019		747		14.28		14.69		10,918		1.00	%		1.00	%		1.30	%		33.12	%		33.53	%
2018		696		10.69		11.04		7,656		0.58	%		1.00	%		1.30	%		(10.42	)%		(10.15	)%
American Funds IS Global Small Capitalization Class 2
2022		592		10.49		12.26		6,483		0.00	%		0.75	%		0.90	%		(30.08	)%		(30.19	)%
2021		457		15.00		17.55		7,236		0.00	%		0.75	%		0.90	%		5.94	%		5.78	%
2020		284		14.16		16.60		4,409		0.13	%		0.75	%		0.90	%		28.56	%		28.75	%
2019		188		11.00		12.91		2,383		0.16	%		0.75	%		0.90	%		4.01	%		30.34	%
2018		138		9.90		9.90		1,368		0.10	%		1.30	%		1.30	%		(11.36	)%		(11.36	)%
American Funds IS Global Small Capitalization Class 4
2022		34		9.68		11.66		392		0.00	%		0.30	%		1.30	%		(29.90	)%		(30.60	)%
2021		17		13.81		16.80		283		0.00	%		0.30	%		1.30	%		6.11	%		5.04	%
2020		20		15.99		15.99		314		0.12	%		1.30	%		1.30	%		27.71	%		27.71	%
2019		19		12.52		12.52		243		0.01	%		1.30	%		1.30	%		29.54	%		29.54	%
2018		28		9.67		9.67		270		0.03	%		1.30	%		1.30	%		(11.97	)%		(11.97	)%
American Funds IS Growth – Income Class 2
2022		1,291		12.42		15.90		16,383		1.40	%		0.75	%		0.90	%		(17.12	)%		(17.24	)%
2021		916		14.99		19.22		14,196		1.39	%		0.75	%		0.90	%		23.17	%		22.98	%
2020		287		12.17		15.63		3,905		1.42	%		0.75	%		0.90	%		12.52	%		12.69	%
2019		114		10.80		13.89		1,582		1.82	%		0.75	%		0.90	%		3.72	%		25.00	%
2018		96		11.11		11.11		1,071		2.37	%		0.90	%		0.90	%		(2.67	)%		(2.67	)%
American Funds IS Growth – Income Class 4
2022		909		11.77		15.32		14,625		1.02	%		0.30	%		1.30	%		(16.96	)%		(17.79	)%
2021		929		14.18		18.63		18,344		1.00	%		0.30	%		1.30	%		23.43	%		22.19	%
2020		828		15.25		16.27		13,411		1.48	%		1.00	%		1.30	%		11.78	%		12.12	%
2019		518		13.64		14.51		7,471		1.93	%		1.00	%		1.30	%		24.22	%		24.60	%
2018		268		10.98		11.65		3,102		1.89	%		1.00	%		1.30	%		(3.34	)%		(3.04	)%

157

	As of December 31								For the period ended December 31
Subaccount	Units (000’s)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000’s)		Investment Income Ratio ^(a)			Expense Ratio ^(b)						Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
			Low ^(d)		High ^(d)							Low ^(d)			High ^(d)			Low ^(d)			High ^(d)

American Funds IS Growth Class 2
2022		3,276	$	14.00	$	22.28	$	51,021		0.33	%		0.75	%		0.90	%		(30.46	)%		(30.57	)%
2021		2,353		20.14		32.09		54,975		0.25	%		0.75	%		0.90	%		21.08	%		20.89	%
2020		1,249		15.99		26.54		27,688		0.28	%		0.75	%		0.90	%		50.71	%		50.94	%
2019		824		11.02		17.61		14,503		0.78	%		0.75	%		0.90	%		4.22	%		29.60	%
2018		791		13.59		13.59		10,752		0.50	%		0.90	%		0.90	%		(1.15	)%		(1.15	)%
American Funds IS Growth Class 4
2022		2,121		10.87		21.19		37,934		0.09	%		0.30	%		1.30	%		(30.32	)%		(31.02	)%
2021		2,489		15.60		30.73		67,204		0.07	%		0.30	%		1.30	%		21.32	%		20.10	%
2020		1,874		12.86		25.58		41,912		0.31	%		0.30	%		1.30	%		49.75	%		50.20	%
2019		986		14.79		17.08		14,785		0.69	%		1.00	%		1.30	%		28.75	%		29.14	%
2018		486		11.45		13.27		5,703		0.34	%		1.00	%		1.30	%		(1.80	)%		(1.50	)%
American Funds IS High-Income Bond 2
2022		59		9.07		9.07		535		14.04	%		0.75	%		0.75	%		(9.94	)%		(9.94	)%
2021		2		10.08		10.08		25		0.00	%		0.75	%		0.75	%		0.00	%		0.00	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
American Funds IS International Class 2
2022		932		9.36		10.59		9,242		1.71	%		0.75	%		0.90	%		(21.38	)%		(21.50	)%
2021		827		11.90		13.49		10,508		2.95	%		0.75	%		0.90	%		(2.23	)%		(2.38	)%
2020		535		12.17		13.82		7,211		0.61	%		0.75	%		0.90	%		12.95	%		13.12	%
2019		420		10.76		12.24		5,144		1.55	%		0.75	%		0.90	%		4.35	%		21.78	%
2018		385		10.05		10.05		3,871		2.15	%		0.90	%		0.90	%		(13.92	)%		(13.92	)%
American Funds IS International Class 4
2022		53		9.52		10.08		535		1.64	%		0.30	%		1.30	%		(21.26	)%		(22.05	)%
2021		33		12.09		12.93		420		2.46	%		0.30	%		1.30	%		(2.01	)%		(2.99	)%
2020		29		13.32		13.32		392		0.39	%		1.30	%		1.30	%		12.18	%		12.18	%
2019		30		11.88		11.88		351		1.41	%		1.30	%		1.30	%		21.07	%		21.07	%
2018		18		9.81		9.81		181		2.44	%		1.30	%		1.30	%		(14.54	)%		(14.54	)%

158

	As of December 31								For the period ended December 31
Subaccount	Units (000’s)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000’s)		Investment Income Ratio ^(a)			Expense Ratio ^(b)						Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
			Low ^(d)		High ^(d)							Low ^(d)			High ^(d)			Low ^(d)			High ^(d)

American Funds IS International Growth And Income 2
2022		112	$	8.16	$	8.16	$	913		5.60	%		0.75	%		0.75	%		(15.88	)%		(15.88	)%
2021		1		9.71		9.71		10		0.00	%		0.75	%		0.75	%		1.08	%		1.08	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
American Funds IS New World Class 2
2022		760		10.71		13.02		8,784		1.29	%		0.75	%		0.90	%		(22.68	)%		(22.80	)%
2021		659		13.85		16.86		9,954		0.99	%		0.75	%		0.90	%		4.14	%		3.98	%
2020		384		13.30		16.22		5,933		0.06	%		0.75	%		0.90	%		22.47	%		22.66	%
2019		320		10.84		13.24		4,201		0.99	%		0.75	%		0.90	%		4.19	%		27.98	%
2018		285		10.35		10.35		2,944		1.01	%		0.90	%		0.90	%		(14.82	)%		(14.82	)%
American Funds IS New World Class 4
2022		30		9.91		12.39		337		1.01	%		0.30	%		1.30	%		(22.49	)%		(23.26	)%
2021		23		12.79		16.15		362		0.65	%		0.30	%		1.30	%		4.32	%		3.27	%
2020		23		15.64		15.64		366		0.03	%		1.30	%		1.30	%		21.69	%		21.69	%
2019		19		12.85		12.85		250		0.94	%		1.30	%		1.30	%		27.14	%		27.14	%
2018		8		10.11		10.11		80		0.80	%		1.30	%		1.30	%		(15.37	)%		(15.37	)%
American Funds IS The Bond Fund Of America 2
2022		3,461		9.41		10.09		32,758		3.58	%		0.75	%		0.90	%		(13.23	)%		(13.36	)%
2021		1,698		10.85		11.64		18,660		1.90	%		0.75	%		0.90	%		(1.05	)%		(1.20	)%
2020		557		10.96		11.79		6,314		2.42	%		0.75	%		0.90	%		8.75	%		8.91	%
2019		261		10.06		10.84		2,829		2.79	%		0.75	%		0.90	%		0.27	%		8.37	%
2018		218		10.00		10.00		2,182		3.56	%		0.90	%		0.90	%		(1.61	)%		(1.61	)%
American Funds IS The Bond Fund Of America 4
2022		867		8.81		9.71		8,478		2.90	%		0.30	%		1.30	%		(13.01	)%		(13.88	)%
2021		715		10.13		11.28		8,143		1.41	%		0.30	%		1.30	%		(0.88	)%		(1.88	)%
2020		482		11.49		11.73		5,619		2.34	%		1.00	%		1.30	%		7.96	%		8.29	%
2019		201		10.65		10.83		2,164		2.87	%		1.00	%		1.30	%		7.66	%		7.99	%
2018		122		9.89		10.03		1,219		3.39	%		1.00	%		1.30	%		(2.18	)%		(1.88	)%

159

	As of December 31								For the period ended December 31
Subaccount	Units (000’s)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000’s)		Investment Income Ratio ^(a)			Expense Ratio ^(b)						Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
			Low ^(d)		High ^(d)							Low ^(d)			High ^(d)			Low ^(d)			High ^(d)

American Funds IS U.S. Government Securities Fund 2
2022		346	$	9.51	$	9.81	$	3,304		3.76	%		0.75	%		0.90	%		(11.62	)%		(11.75	)%
2021		336		10.76		11.12		3,644		1.68	%		0.75	%		0.90	%		(1.37	)%		(1.52	)%
2020		167		10.91		11.29		1,846		1.84	%		0.75	%		0.90	%		8.82	%		8.98	%
2019		57		10.38		10.38		586		2.28	%		0.90	%		0.90	%		4.37	%		4.37	%
2018		42		9.94		9.94		414		3.02	%		0.90	%		0.90	%		(0.18	)%		(0.18	)%
American Funds IS U.S. Government Securities Fund 4
2022		424		8.80		9.45		4,042		3.24	%		0.30	%		1.30	%		(11.46	)%		(12.35	)%
2021		466		9.94		10.78		5,068		0.90	%		0.30	%		1.30	%		(1.17	)%		(2.16	)%
2020		667		11.02		11.21		7,444		2.57	%		1.00	%		1.30	%		8.06	%		8.39	%
2019		80		10.20		10.34		817		2.18	%		1.00	%		1.30	%		3.78	%		4.09	%
2018		51		9.83		9.94		500		2.75	%		1.00	%		1.30	%		(0.81	)%		(0.51	)%
American Funds IS Washington Mutual Investors Fund 2
2022		2,557		13.54		17.29		38,161		1.90	%		0.75	%		0.90	%		(9.14	)%		(9.27	)%
2021		2,381		14.91		19.06		39,893		1.64	%		0.75	%		0.90	%		26.82	%		26.63	%
2020		1,548		11.75		15.05		21,924		1.71	%		0.75	%		0.90	%		7.71	%		7.87	%
2019		1,138		10.90		13.97		15,902		2.16	%		0.75	%		0.90	%		4.28	%		20.29	%
2018		1,028		11.62		11.62		11,948		2.13	%		0.90	%		0.90	%		(9.48	)%		(9.48	)%
American Funds IS Washington Mutual Investors Fund 4
2022		195		13.52		16.46		3,041		1.68	%		0.30	%		1.30	%		(8.96	)%		(9.87	)%
2021		182		14.85		18.26		3,297		1.32	%		0.30	%		1.30	%		27.13	%		25.86	%
2020		168		14.51		14.51		2,441		1.50	%		1.30	%		1.30	%		7.06	%		7.06	%
2019		136		13.55		13.55		1,837		2.06	%		1.30	%		1.30	%		19.46	%		19.46	%
2018		104		11.35		11.35		1,176		1.98	%		1.30	%		1.30	%		(10.11	)%		(10.11	)%
Blackrock 60/40 Target Allocation ETF V.I. Fund
2022		340		8.57		9.20		2,986		3.22	%		0.75	%		1.30	%		(15.67	)%		(16.14	)%
2021		57		11.00		10.97		629		1.62	%		1.00	%		1.30	%		3.22	%		2.96	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-

160

	As of December 31								For the period ended December 31
Subaccount	Units (000’s)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000’s)		Investment Income Ratio ^(a)			Expense Ratio ^(b)						Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
			Low ^(d)		High ^(d)							Low ^(d)			High ^(d)			Low ^(d)			High ^(d)

Blackrock Global Allocation V.I. III
2022		1,517	$	8.85	$	8.69	$	12,534		0.00	%		0.30	%		1.30	%		(16.32	)%		(17.16	)%
2021		84		9.85		10.49		862		0.40	%		0.75	%		1.30	%		(5.82	)%		0.34	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
Blackrock International V.I. I
2022		57		7.71		7.03		405		1.43	%		0.30	%		0.75	%		(24.84	)%		(25.18	)%
2021		8		9.39		9.39		75		0.00	%		0.75	%		0.75	%		0.00	%		0.00	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
Calvert VP SRI Balanced
2022		38		25.17		27.55		1,079		1.03	%		0.85	%		1.55	%		(16.13	)%		(16.72	)%
2021		46		30.02		33.08		1,595		1.16	%		0.85	%		1.55	%		14.14	%		13.34	%
2020		49		26.30		31.15		1,488		1.48	%		0.85	%		1.55	%		13.48	%		14.28	%
2019		50		23.01		27.37		1,337		1.57	%		0.85	%		1.55	%		22.48	%		23.35	%
2018		53		18.66		22.28		1,159		1.84	%		0.85	%		1.55	%		(4.18	)%		(3.50	)%
Clearbridge Variable Dividend Strategy II
2022		18		11.44		11.23		203		1.95	%		0.30	%		1.30	%		(8.51	)%		(9.42	)%
2021		4		12.43		12.40		45		0.98	%		1.00	%		1.30	%		10.96	%		10.68	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
Clearbridge Variable Large Cap Growth II
2022		18		8.33		8.28		147		0.00	%		1.00	%		1.30	%		(33.09	)%		(33.29	)%
2021		11		12.45		12.42		131		0.00	%		1.00	%		1.30	%		13.64	%		13.36	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-

161

	As of December 31								For the period ended December 31
Subaccount	Units (000’s)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000’s)		Investment Income Ratio ^(a)			Expense Ratio ^(b)						Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
			Low ^(d)		High ^(d)							Low ^(d)			High ^(d)			Low ^(d)			High ^(d)

ClearBridge Variable Mid Cap Portfolio Class II
2022		1,068	$	31.33	$	20.77	$	24,485		0.06	%		0.60	%		1.75	%		(25.95	)%		(26.80	)%
2021		2,032		42.31		28.37		66,543		0.03	%		0.60	%		1.75	%		27.62	%		26.14	%
2020		2,339		12.27		33.16		62,964		0.03	%		0.60	%		1.75	%		13.09	%		14.41	%
2019		2,806		19.89		28.98		66,938		0.50	%		0.60	%		1.75	%		30.33	%		31.86	%
2018		1,304		15.26		21.98		25,104		0.11	%		0.60	%		1.75	%		(14.33	)%		(13.32	)%
ClearBridge Variable Small Cap Growth II
2022		486		10.41		26.34		12,106		0.00	%		0.30	%		1.75	%		(29.22	)%		(30.25	)%
2021		540		14.71		37.77		20,778		0.00	%		0.30	%		1.75	%		11.98	%		10.35	%
2020		657		15.32		52.71		26,813		0.00	%		0.60	%		1.75	%		40.42	%		42.05	%
2019		847		24.38		37.10		25,189		0.00	%		0.60	%		1.75	%		24.34	%		25.79	%
2018		493		19.60		29.49		12,305		0.00	%		0.60	%		1.75	%		1.39	%		2.59	%
Columbia VP Balanced 2
2022		188		8.32		9.11		1,668		0.00	%		0.75	%		1.30	%		(17.49	)%		(17.94	)%
2021		140		11.13		11.10		1,552		0.00	%		1.00	%		1.30	%		5.38	%		5.12	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
Columbia VP Emerging Markets Bond 2
2022		13		8.06		8.06		106		3.30	%		0.75	%		0.75	%		(16.79	)%		(16.79	)%
2021		-		-		-		-		-			-			-			-			-
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
Columbia VP Intermediate Bond 2
2022		109		8.26		8.11		890		3.65	%		0.30	%		1.30	%		(17.47	)%		(18.29	)%
2021		36		9.95		9.93		357		0.79	%		1.00	%		1.30	%		(0.89	)%		(1.14	)%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-

162

	As of December 31								For the period ended December 31
Subaccount	Units (000’s)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000’s)		Investment Income Ratio ^(a)			Expense Ratio ^(b)						Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
			Low ^(d)		High ^(d)							Low ^(d)			High ^(d)			Low ^(d)			High ^(d)

Columbia VP Limited Duration Credit 2
2022		28	$	9.29	$	9.12	$	259		0.62	%		0.30	%		1.30	%		(6.64	)%		(7.57	)%
2021		2		9.95		9.89		17		0.15	%		0.30	%		1.00	%		(1.09	)%		(1.66	)%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
Columbia VP Select Mid Cap Value 2
2022		59		10.65		10.52		596		0.00	%		0.30	%		1.00	%		(9.93	)%		(10.56	)%
2021		7		11.83		11.76		83		0.00	%		0.30	%		1.00	%		13.40	%		12.76	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
Columbia VP Strategic Income 2
2022		673		8.68		8.70		5,875		2.23	%		0.75	%		1.30	%		(12.18	)%		(12.66	)%
2021		39		9.88		9.96		389		0.38	%		0.75	%		1.30	%		(1.47	)%		(0.66	)%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
DFA VA Equity Allocation Portfolio Instl
2022		8		13.30		13.30		108		3.02	%		0.30	%		0.30	%		(13.94	)%		(13.94	)%
2021		2		15.46		15.46		25		2.01	%		0.30	%		0.30	%		8.40	%		8.40	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
DFA VA Global Bond
2022		88		9.25		9.25		817		1.76	%		0.30	%		0.30	%		(6.61	)%		(6.61	)%
2021		70		9.90		9.90		696		0.71	%		0.30	%		0.30	%		(1.31	)%		(1.31	)%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-

163

	As of December 31								For the period ended December 31
Subaccount	Units (000’s)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000’s)		Investment Income Ratio ^(a)			Expense Ratio ^(b)						Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
			Low ^(d)		High ^(d)							Low ^(d)			High ^(d)			Low ^(d)			High ^(d)

DFA VA Global Moderate Allocation Instl
2022		43	$	11.68	$	11.68	$	501		1.74	%		0.30	%		0.30	%		(11.22	)%		(11.22	)%
2021		28		13.16		13.16		369		1.42	%		0.30	%		0.30	%		10.82	%		10.82	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
DFA VA International Small
2022		57		11.89		11.89		672		3.33	%		0.30	%		0.30	%		(17.89	)%		(17.89	)%
2021		27		14.48		14.48		395		4.86	%		0.30	%		0.30	%		14.22	%		14.22	%
2020		-		12.68		12.68		1,901		0.00	%		0.30	%		0.30	%		16.67	%		16.67	%
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
DFA VA International Value
2022		73		13.88		13.88		1,016		5.32	%		0.30	%		0.30	%		(3.75	)%		(3.75	)%
2021		31		14.42		14.42		444		7.49	%		0.30	%		0.30	%		17.76	%		17.76	%
2020		-		12.25		12.25		3,773		0.00	%		0.30	%		0.30	%		17.27	%		17.27	%
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
DFA VA Short-Term Fixed
2022		92		9.79		9.79		900		1.44	%		0.30	%		0.30	%		(1.45	)%		(1.45	)%
2021		45		9.94		9.94		445		0.01	%		0.30	%		0.30	%		(0.49	)%		(0.49	)%
2020		2		9.99		9.99		18,246		0.59	%		0.30	%		0.30	%		(0.09	)%		(0.09	)%
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
DFA VA US Large Value
2022		159		14.94		14.94		2,370		2.77	%		0.30	%		0.30	%		(5.16	)%		(5.16	)%
2021		93		15.76		15.76		1,472		3.13	%		0.30	%		0.30	%		26.66	%		26.66	%
2020		1		12.44		12.44		17,930		0.00	%		0.30	%		0.30	%		15.04	%		15.04	%
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-

164

	As of December 31								For the period ended December 31
Subaccount	Units (000’s)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000’s)		Investment Income Ratio ^(a)			Expense Ratio ^(b)						Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
			Low ^(d)		High ^(d)							Low ^(d)			High ^(d)			Low ^(d)			High ^(d)

DFA VA US Targeted Value
2022		68	$	18.88	$	18.88	$	1,276		1.62	%		0.30	%		0.30	%		(4.50	)%		(4.50	)%
2021		36		19.77		19.77		703		1.30	%		0.30	%		0.30	%		33.43	%		33.43	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
Fidelity Contrafund Portfolio SC2
2022		4,991		33.15		25.49		143,936		0.17	%		0.60	%		1.75	%		(26.93	)%		(27.77	)%
2021		8,858		45.37		35.28		356,344		0.03	%		0.60	%		1.75	%		26.75	%		25.28	%
2020		9,484		13.91		50.62		319,766		0.08	%		0.60	%		1.75	%		27.96	%		29.45	%
2019		11,442		10.76		39.18		304,718		0.25	%		0.60	%		1.75	%		3.53	%		30.49	%
2018		6,258		17.06		30.09		138,954		0.40	%		0.60	%		1.75	%		(8.28	)%		(7.20	)%
Fidelity Equity Income SC2
2022		171		27.16		22.75		5,154		1.57	%		0.60	%		1.65	%		(5.81	)%		(6.80	)%
2021		200		28.84		24.41		6,468		1.65	%		0.60	%		1.65	%		23.86	%		22.55	%
2020		239		19.92		36.57		6,349		1.44	%		0.60	%		1.65	%		4.69	%		5.80	%
2019		280		19.03		34.64		6,986		1.85	%		0.60	%		1.65	%		25.01	%		26.34	%
2018		297		15.22		27.47		5,965		2.03	%		0.60	%		1.65	%		(10.05	)%		(9.09	)%
Fidelity Freedom Fund - 2015 Maturity SC2
2022		52		18.41		15.74		940		1.93	%		0.60	%		1.65	%		(15.30	)%		(16.19	)%
2021		63		21.73		18.78		1,374		0.95	%		0.60	%		1.65	%		6.75	%		5.62	%
2020		51		17.78		26.18		1,081		1.00	%		0.60	%		1.65	%		11.69	%		12.88	%
2019		53		15.92		23.23		991		1.81	%		0.60	%		1.65	%		16.03	%		17.27	%
2018		58		13.72		19.85		918		1.27	%		0.60	%		1.65	%		(6.85	)%		(5.85	)%
Fidelity Freedom Fund - 2020 Maturity SC2
2022		116		18.98		16.23		2,240		1.77	%		0.60	%		1.65	%		(16.47	)%		(17.35	)%
2021		118		22.72		19.63		2,729		0.82	%		0.60	%		1.65	%		8.61	%		7.46	%
2020		128		18.27		28.86		2,844		1.02	%		0.60	%		1.65	%		12.83	%		14.03	%
2019		136		16.19		25.36		2,659		1.82	%		0.60	%		1.65	%		17.90	%		19.16	%
2018		137		13.73		21.32		2,290		1.51	%		0.60	%		1.65	%		(7.63	)%		6.64	%

165

	As of December 31								For the period ended December 31
Subaccount	Units (000’s)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000’s)		Investment Income Ratio ^(a)			Expense Ratio ^(b)						Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
			Low ^(d)		High ^(d)							Low ^(d)			High ^(d)			Low ^(d)			High ^(d)

Fidelity Growth Portfolio SC2
2022		55	$	43.62	$	36.54	$	2,364		0.34	%		0.60	%		1.65	%		(25.10	)%		(25.88	)%
2021		64		58.24		49.30		3,652		0.00	%		0.60	%		1.65	%		22.17	%		20.88	%
2020		69		40.79		70.60		3,260		0.05	%		0.60	%		1.65	%		41.19	%		42.69	%
2019		108		28.89		49.58		3,610		0.05	%		0.60	%		1.65	%		31.77	%		33.17	%
2018		104		21.92		37.30		2,623		0.05	%		0.70	%		1.65	%		(2.08	)%		(1.13	)%
Fidelity Index 500 Portfolio SC2
2022		9,610		35.76		28.98		248,696		0.74	%		0.60	%		1.75	%		(18.91	)%		(19.84	)%
2021		23,448		44.10		36.15		890,425		1.04	%		0.60	%		1.75	%		27.49	%		26.02	%
2020		23,472		12.65		49.15		745,454		1.36	%		0.60	%		1.75	%		15.89	%		17.24	%
2019		28,900		10.81		42.01		804,290		2.12	%		0.60	%		1.75	%		3.82	%		30.23	%
2018		9,749		19.23		32.32		210,996		1.28	%		0.60	%		1.75	%		(6.40	)%		(5.30	)%
Fidelity Investment Grade Bonds SC2
2022		21,625		8.75		10.11		246,236		2.03	%		0.30	%		1.75	%		(13.47	)%		(14.73	)%
2021		22,092		10.11		11.86		297,519		1.87	%		0.30	%		1.75	%		(1.19	)%		(2.63	)%
2020		19,427		10.91		17.94		272,123		2.01	%		0.60	%		1.75	%		7.26	%		8.51	%
2019		20,226		10.07		16.54		262,913		2.53	%		0.60	%		1.75	%		0.23	%		8.75	%
2018		21,633		10.56		15.21		259,462		2.28	%		0.60	%		1.75	%		(2.53	)%		(1.39	)%
Fidelity Mid Cap SC2
2022		4,992		14.21		21.07		137,923		0.20	%		0.30	%		1.75	%		(15.22	)%		(16.45	)%
2021		9,383		16.77		25.22		298,885		0.35	%		0.30	%		1.75	%		24.93	%		23.12	%
2020		11,533		12.66		42.72		300,209		0.34	%		0.60	%		1.75	%		15.81	%		17.16	%
2019		14,516		17.69		36.63		323,571		0.84	%		0.60	%		1.75	%		21.02	%		22.43	%
2018		6,568		14.62		30.05		131,653		0.35	%		0.60	%		1.75	%		(16.27	)%		(15.29	)%
Fidelity VIP Asset Manager Growth Service 2
2022		9		8.25		8.25		76		2.18	%		0.75	%		0.75	%		(17.67	)%		(17.67	)%
2021		-		-		-		-		-			-			-			-			-
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-

166

	As of December 31								For the period ended December 31
Subaccount	Units (000’s)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000’s)		Investment Income Ratio ^(a)			Expense Ratio ^(b)						Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
			Low ^(d)		High ^(d)							Low ^(d)			High ^(d)			Low ^(d)			High ^(d)

Fidelity VIP Asset Manager Service 2
2022		13	$	8.95	$	9.03	$	115		2.36	%		1.20	%		1.30	%		3.47	%		(16.25	)%
2021		7		10.80		10.78		77		1.37	%		1.00	%		1.30	%		2.74	%		2.48	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
Fidelity VIP Balanced Service 2
2022		1,996		9.39		9.22		17,083		1.38	%		0.30	%		1.30	%		(18.43	)%		(19.25	)%
2021		395		10.26		11.42		4,441		0.35	%		0.75	%		1.30	%		(2.52	)%		8.48	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
Fidelity VIP Bond Index Port
2022		57		8.47		8.47		483		2.34	%		0.75	%		0.75	%		(14.03	)%		(14.03	)%
2021		2		9.85		9.85		17		0.00	%		0.75	%		0.75	%		0.27	%		0.27	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
Fidelity VIP Energy Service 2
2022		85		18.23		17.90		1,502		2.98	%		0.30	%		1.30	%		62.38	%		60.76	%
2021		26		11.16		11.13		294		2.56	%		1.00	%		1.30	%		10.05	%		9.77	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
Fidelity VIP Extended Market Index Portfolio
2022		7		8.08		8.08		53		1.70	%		0.75	%		0.75	%		(18.91	)%		(18.91	)%
2021		-		-		-		-		-			-			-			-			-
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-

167

	As of December 31								For the period ended December 31
Subaccount	Units (000’s)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000’s)		Investment Income Ratio ^(a)			Expense Ratio ^(b)						Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
			Low ^(d)		High ^(d)							Low ^(d)			High ^(d)			Low ^(d)			High ^(d)

Fidelity VIP Fundsmanager 20% Service 2
2022		110	$	9.26	$	9.21	$	1,014		2.79	%		1.00	%		1.30	%		(10.66	)%		(10.93	)%
2021		54		10.36		10.34		562		0.74	%		1.00	%		1.30	%		0.54	%		0.29	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
Fidelity VIP Fundsmanager 60% Service 2
2022		-		8.40		8.40		-		0.00	%		0.75	%		0.75	%		(7.55	)%		(7.55	)%
2021		-		-		-		-		-			-			-			-			-
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
Fidelity VIP Fundsmanager 85% Service 2
2022		59		8.29		9.30		547		0.93	%		0.75	%		1.30	%		(17.81	)%		(18.27	)%
2021		-		-		-		-		-			-			-			-			-
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
Fidelity VIP Health Care Port Service 2
2022		102		9.70		9.52		960		0.00	%		0.30	%		1.30	%		(12.88	)%		(13.75	)%
2021		18		11.07		11.04		197		0.00	%		1.00	%		1.30	%		2.97	%		2.71	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
Fidelity VIP International Index Port
2022		27		8.08		8.08		216		3.96	%		0.75	%		0.75	%		(16.84	)%		(16.84	)%
2021		2		9.71		9.71		22		0.00	%		0.75	%		0.75	%		(0.00	)%		(0.00	)%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-

168

	As of December 31								For the period ended December 31
Subaccount	Units (000’s)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000’s)		Investment Income Ratio ^(a)			Expense Ratio ^(b)						Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
			Low ^(d)		High ^(d)							Low ^(d)			High ^(d)			Low ^(d)			High ^(d)

Fidelity VIP Target Volatility Service 2
2022		10	$	8.99	$	9.18	$	89		2.40	%		1.20	%		1.30	%		(1.63	)%		(16.75	)%
2021		6		11.03		11.03		62		0.00	%		1.30	%		1.30	%		2.62	%		2.62	%
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
Fidelity VIP Technology Initial
2022		25		6.78		6.78		167		0.00	%		0.75	%		0.75	%		(36.34	)%		(36.34	)%
2021		-		-		-		-		-			-			-			-			-
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
Fidelity VIP Total Market Index Port
2022		172		8.29		8.29		1,423		2.54	%		0.75	%		0.75	%		(20.01	)%		(20.01	)%
2021		-		-		-		-		-			-			-			-			-
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
Fidelity VIP Utilities Initial
2022		6		11.08		11.08		67		1.63	%		0.75	%		0.75	%		4.63	%		4.63	%
2021		-		-		-		-		-			-			-			-			-
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-
Fidelity VIP Value Strategies Service 2
2022		59		9.49		9.63		569		0.89	%		0.30	%		0.75	%		2.66	%		(7.41	)%
2021		-		-		-		-		-			-			-			-			-
2020		-		-		-		-		-			-			-			-			-
2019		-		-		-		-		-			-			-			-			-
2018		-		-		-		-		-			-			-			-			-

169

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

Franklin Dynatech VIP Fund
2022		1,426	$	27.77	$	21.36	$	22,952		0.00	%		0.60	%	1.75	%		(40.32	)%	(41.01	)%
2021		1,453		46.54		36.21		50,142		0.00	%		0.60	%	1.75	%		15.45	%	14.12	%
2020		1,184		15.07		53.95		43,345		0.00	%		0.60	%	1.75	%		42.36	%	44.02	%
2019		1,372		22.29		37.53		35,750		0.00	%		0.60	%	1.75	%		28.87	%	30.38	%
2018		690		17.29		28.85		14,377		0.00	%		0.60	%	1.75	%		1.32	%	2.52	%
Franklin Income VIP CL 2
2022		5,291		12.38		15.29		103,413		4.13	%		0.30	%	1.75	%		(5.76	)%	(7.12	)%
2021		8,997		13.13		16.46		185,425		4.73	%		0.30	%	1.75	%		16.40	%	14.72	%
2020		9,954		10.35		24.74		179,434		3.40	%		0.60	%	1.75	%		(1.07	)%	0.09	%
2019		11,530		14.51		24.77		208,678		6.48	%		0.60	%	1.75	%		14.03	%	15.36	%
2018		7,916		12.72		21.52		129,560		5.91	%		0.60	%	1.75	%		(5.99	)%	(4.88	)%
Franklin Multi-Asset Dynamic Multi-Strat VIT
2022		-		-		-		-		0.00	%		1.00	%	1.75	%		(13.40	)%	(13.81	)%
2021		1,464		12.07		12.82		19,309		2.32	%		1.00	%	1.75	%		11.52	%	10.68	%
2020		1,567		10.82		12.05		18,608		1.43	%		1.00	%	1.75	%		(9.92	)%	(9.23	)%
2019		1,959		11.92		13.32		25,721		2.02	%		1.00	%	1.75	%		13.49	%	14.36	%
2018		2,199		10.43		11.68		25,349		1.57	%		1.00	%	1.75	%		(8.88	)%	(8.18	)%
Franklin Mutual Global Discovery VIP CL 2
2022		278		11.40		11.60		3,281		1.34	%		0.75	%	1.30	%		(5.46	)%	(5.98	)%
2021		320		12.06		12.33		3,994		3.29	%		0.75	%	1.30	%		18.24	%	17.58	%
2020		180		10.20		11.03		1,938		1.91	%		0.75	%	1.30	%		(5.70	)%	(5.18	)%
2019		192		10.76		11.66		2,169		1.58	%		0.75	%	1.30	%		3.63	%	23.25	%
2018		124		9.06		9.47		1,147		2.71	%		0.90	%	1.30	%		(12.38	)%	(12.02	)%
Franklin Mutual Shares VIP CL 2
2022		18,330		20.00		17.17		354,552		1.34	%		0.60	%	1.75	%		(7.99	)%	(9.05	)%
2021		28,009		21.74		18.88		593,134		2.90	%		0.60	%	1.75	%		18.45	%	17.09	%
2020		32,911		10.11		26.37		597,023		1.70	%		0.60	%	1.75	%		(6.70	)%	(5.61	)%
2019		34,090		10.73		28.00		660,473		2.23	%		0.60	%	1.75	%		3.40	%	21.84	%
2018		24,488		13.95		23.02		392,976		2.94	%		0.60	%	1.75	%		(10.66	)%	(9.61	)%

170

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

Franklin Rising Dividend VIP CL 2
2022		9,167	$	13.50	$	28.60	$	282,597		0.46	%		0.30	%	1.75	%		(10.84	)%	(12.13	)%
2021		10,145		15.14		32.55		368,754		0.87	%		0.30	%	1.75	%		26.41	%	24.57	%
2020		11,441		12.25		44.85		341,603		0.83	%		0.60	%	1.75	%		13.94	%	15.27	%
2019		14,143		10.64		38.99		371,083		1.59	%		0.60	%	1.75	%		3.55	%	28.46	%
2018		9,662		18.06		30.41		205,653		1.60	%		0.60	%	1.75	%		(6.74	)%	(5.65	)%
Franklin Small Cap Value VIP CL 2
2022		1,208		14.82		22.49		31,949		0.79	%		0.30	%	1.75	%		(10.33	)%	(11.63	)%
2021		1,576		36.77		25.45		48,020		1.06	%		0.60	%	1.75	%		24.61	%	23.18	%
2020		1,881		11.43		29.50		47,671		1.05	%		0.60	%	1.75	%		3.35	%	4.56	%
2019		2,009		19.99		28.22		49,170		0.91	%		0.60	%	1.75	%		24.14	%	25.59	%
2018		1,597		16.10		22.47		32,328		1.06	%		0.60	%	1.75	%		(14.41	)%	(13.40	)%
Franklin Small-Mid Cap Growth VIP CL 2
2022		930		9.25		21.57		21,330		0.00	%		0.30	%	1.75	%		(33.89	)%	(34.85	)%
2021		1,059		43.78		33.11		38,855		0.00	%		0.60	%	1.75	%		9.35	%	8.09	%
2020		1,303		16.43		59.75		47,230		0.00	%		0.60	%	1.75	%		52.38	%	54.16	%
2019		1,464		20.10		38.84		35,347		0.00	%		0.60	%	1.75	%		29.14	%	30.65	%
2018		806		15.57		29.79		15,829		0.00	%		0.60	%	1.75	%		(7.03	)%	(5.94	)%
Franklin Strategic Income VIP CL 2
2022		608		9.29		9.47		5,907		4.11	%		0.75	%	1.30	%		(11.42	)%	(11.91	)%
2021		606		10.49		10.75		6,665		3.33	%		0.75	%	1.30	%		1.34	%	0.78	%
2020		487		10.35		11.04		5,359		6.31	%		0.75	%	1.30	%		2.09	%	2.65	%
2019		162		10.45		10.78		1,741		4.17	%		0.90	%	1.30	%		6.65	%	7.08	%
2018		105		9.80		10.08		1,057		2.74	%		0.90	%	1.30	%		(3.41	)%	(3.02	)%
Franklin US Government Securities VIP CL 2
2022		33,272		12.13		8.61		332,953		2.34	%		0.60	%	1.75	%		(10.29	)%	(11.33	)%
2021		37,380		13.52		9.71		419,387		2.49	%		0.60	%	1.75	%		(2.42	)%	(3.54	)%
2020		35,725		10.07		13.85		413,139		3.31	%		0.60	%	1.75	%		2.02	%	3.21	%
2019		40,081		9.87		13.42		449,989		2.89	%		0.60	%	1.75	%		(0.14	)%	4.60	%
2018		45,670		9.55		12.83		491,853		2.74	%		0.60	%	1.75	%		(1.43	)%	(0.27	)%

171

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

Goldman Sachs Global Trends Allocation Fund SC
2022		526	$	11.37	$	11.20	$	6,039		0.00	%		1.00	%	1.75	%		(19.97	)%	(20.57	)%
2021		502		14.21		14.10		7,291		0.00	%		1.00	%	1.75	%		15.01	%	14.14	%
2020		514		12.35		12.80		6,519		0.25	%		1.00	%	1.75	%		2.29	%	3.07	%
2019		604		11.99		12.46		7,464		1.47	%		1.00	%	1.75	%		9.98	%	10.82	%
2018		635		10.82		11.27		7,102		0.67	%		1.00	%	1.75	%		(6.02	)%	(5.30	)%
Goldman Sachs International Equity Insights
2022		997		18.47		20.11		17,275		2.93	%		0.60	%	1.80	%		(14.07	)%	(15.11	)%
2021		1,092		21.49		23.69		22,272		2.80	%		0.60	%	1.80	%		11.50	%	10.15	%
2020		1,247		14.52		24.14		22,861		1.41	%		0.60	%	1.80	%		4.89	%	6.17	%
2019		1,350		13.74		22.89		23,424		2.44	%		0.60	%	1.80	%		16.32	%	17.74	%
2018		1,476		11.73		19.57		21,957		1.95	%		0.60	%	1.80	%		(17.80	)%	(16.79	)%
Goldman Sachs International Equity Insights SC
2022		2,318		11.47		11.70		28,015		2.65	%		0.70	%	1.75	%		(14.32	)%	(15.22	)%
2021		2,598		13.39		13.80		36,780		2.50	%		0.70	%	1.75	%		11.03	%	9.86	%
2020		3,156		10.81		20.90		40,321		1.19	%		0.70	%	1.75	%		4.68	%	5.80	%
2019		3,453		10.30		19.77		41,920		2.21	%		0.70	%	1.75	%		16.17	%	17.41	%
2018		3,737		8.85		16.86		38,024		1.53	%		0.70	%	1.75	%		(18.02	)%	(17.14	)%
Goldman Sachs Large Cap Value
2022		825		31.87		45.57		31,618		1.25	%		0.60	%	1.80	%		(6.93	)%	(8.05	)%
2021		932		34.24		49.55		38,616		1.14	%		0.60	%	1.80	%		23.39	%	21.90	%
2020		1,080		23.92		45.64		36,513		1.23	%		0.60	%	1.80	%		2.11	%	3.36	%
2019		1,202		23.26		44.44		39,851		1.48	%		0.60	%	1.80	%		23.66	%	25.17	%
2018		1,397		18.67		35.74		37,305		1.29	%		0.60	%	1.80	%		(10.11	)%	(9.01	)%
Goldman Sachs Large Cap Value Fund SC
2022		3,531		21.69		21.58		80,364		1.00	%		0.70	%	1.75	%		(7.22	)%	(8.20	)%
2021		4,368		23.38		23.51		107,945		0.88	%		0.70	%	1.75	%		23.06	%	21.76	%
2020		5,198		17.03		29.85		104,778		1.04	%		0.70	%	1.75	%		1.93	%	3.02	%
2019		5,556		16.67		29.00		109,299		1.22	%		0.70	%	1.75	%		23.42	%	24.74	%
2018		6,613		13.48		23.27		103,634		1.00	%		0.70	%	1.75	%		(10.33	)%	(9.36	)%

172

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

Goldman Sachs Mid Cap Value
2022		129	$	45.00	$	37.53	$	5,593		0.63	%		0.60	%	1.80	%		(10.53	)%	(11.60	)%
2021		148		50.29		42.46		7,163		0.47	%		0.60	%	1.80	%		30.17	%	28.60	%
2020		160		33.01		39.92		6,009		0.55	%		0.60	%	1.80	%		6.45	%	7.75	%
2019		179		31.01		37.08		6,248		0.82	%		0.60	%	1.80	%		29.16	%	30.74	%
2018		201		24.01		28.39		5,381		1.34	%		0.60	%	1.80	%		(12.08	)%	(11.00	)%
Goldman Sachs Mid Cap Value SC
2022		2,681		28.56		22.32		68,255		0.31	%		0.70	%	1.75	%		(10.86	)%	(11.80	)%
2021		5,041		32.04		25.30		144,009		0.20	%		0.70	%	1.75	%		29.66	%	28.29	%
2020		6,189		11.38		24.71		138,656		0.36	%		0.70	%	1.75	%		6.30	%	7.44	%
2019		7,414		14.96		23.00		154,879		0.76	%		0.70	%	1.75	%		28.88	%	30.25	%
2018		3,608		11.52		17.66		59,701		0.31	%		0.70	%	1.75	%		(12.27	)%	(11.33	)%
Goldman Sachs Small Cap Equity Insights
2022		295		32.22		58.24		16,934		0.28	%		0.60	%	1.80	%		(19.86	)%	(20.83	)%
2021		326		40.21		73.56		23,603		0.47	%		0.60	%	1.80	%		23.05	%	21.57	%
2020		384		26.22		67.93		22,712		0.19	%		0.60	%	1.80	%		6.63	%	7.93	%
2019		424		24.56		63.35		23,315		0.49	%		0.60	%	1.80	%		22.60	%	24.10	%
2018		477		20.01		51.38		21,364		0.50	%		0.60	%	1.80	%		(10.27	)%	(9.17	)%
Goldman Sachs Small Cap Equity Insights SC
2022		334		28.78		32.18		9,515		0.08	%		0.70	%	1.65	%		(20.20	)%	(20.96	)%
2021		358		36.07		40.71		12,807		0.23	%		0.70	%	1.65	%		22.63	%	21.46	%
2020		458		26.36		44.02		13,503		0.00	%		0.70	%	1.65	%		6.58	%	7.61	%
2019		473		24.71		40.95		13,000		0.20	%		0.70	%	1.65	%		22.48	%	23.66	%
2018		633		20.15		33.15		14,033		0.21	%		0.70	%	1.65	%		(10.34	)%	(9.47	)%
Goldman Sachs Strategic Growth
2022		475		42.84		65.61		24,289		0.00	%		0.60	%	1.80	%		(32.92	)%	(33.73	)%
2021		505		63.86		98.99		39,127		0.00	%		0.60	%	1.80	%		21.20	%	19.73	%
2020		586		41.29		92.82		37,639		0.08	%		0.60	%	1.80	%		37.98	%	39.66	%
2019		693		29.71		66.89		31,617		0.29	%		0.60	%	1.80	%		33.09	%	34.72	%
2018		816		22.17		49.98		27,674		0.45	%		0.60	%	1.80	%		(2.83	)%	(1.63	)%

173

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

Goldman Sachs Strategic Growth SC
2022		2,278	$	10.02	$	29.01	$	75,642		0.00	%		0.30	%	1.75	%		(32.88	)%	(33.86	)%
2021		4,005		14.93		43.86		197,980		0.00	%		0.30	%	1.75	%		21.19	%	19.43	%
2020		4,773		15.04		61.74		199,113		0.00	%		0.70	%	1.75	%		37.66	%	39.13	%
2019		6,211		10.82		44.42		188,489		0.06	%		0.70	%	1.75	%		4.23	%	34.37	%
2018		4,077		15.71		33.09		95,954		0.00	%		0.70	%	1.75	%		(3.06	)%	(2.02	)%
Goldman Sachs US Equity Insights
2022		340		38.83		71.21		22,307		0.73	%		0.60	%	1.80	%		(20.22	)%	(21.18	)%
2021		389		48.67		90.34		32,337		0.80	%		0.60	%	1.80	%		28.63	%	27.08	%
2020		438		30.50		79.81		28,662		0.79	%		0.60	%	1.80	%		15.43	%	16.84	%
2019		494		26.24		68.75		27,924		1.26	%		0.60	%	1.80	%		22.96	%	24.46	%
2018		566		21.19		55.60		25,778		1.25	%		0.60	%	1.80	%		(7.89	)%	(6.76	)%
Goldman Sachs US Equity Insights SC
2022		17		30.95		36.89		647		0.55	%		0.70	%	1.65	%		(20.46	)%	(21.22	)%
2021		18		38.92		46.83		872		0.57	%		0.70	%	1.65	%		28.21	%	26.99	%
2020		20		27.21		47.03		740		0.58	%		0.70	%	1.65	%		15.39	%	16.50	%
2019		22		23.55		40.41		736		1.02	%		0.70	%	1.65	%		22.87	%	24.05	%
2018		26		20.22		32.61		697		1.08	%		0.70	%	1.65	%		(7.91	)%	(7.02	)%
Goldman Sachs VIT Core Fixed Income Fund SC
2022		2,779		8.46		9.53		26,759		1.41	%		0.30	%	1.30	%		(14.53	)%	(15.39	)%
2021		2,895		9.89		11.26		32,932		1.13	%		0.30	%	1.30	%		(2.52	)%	(3.50	)%
2020		2,482		10.15		11.93		29,345		1.96	%		0.30	%	1.30	%		7.98	%	8.58	%
2019		2,565		10.80		11.01		28,074		2.56	%		0.90	%	1.30	%		7.59	%	8.02	%
2018		2,691		10.04		10.19		27,300		3.38	%		0.90	%	1.30	%		(2.12	)%	(1.73	)%
Goldman Sachs VIT Mid Cap Growth Fund SC
2022		1,167		10.41		25.17		37,928		0.00	%		0.30	%	1.75	%		(26.52	)%	(27.59	)%
2021		1,310		14.16		34.76		57,806		0.00	%		0.30	%	1.75	%		11.14	%	9.53	%
2020		1,574		15.20		46.30		63,563		0.00	%		0.60	%	1.75	%		41.79	%	43.44	%
2019		2,094		22.39		32.28		56,658		0.00	%		0.60	%	1.75	%		31.72	%	33.26	%
2018		2,160		16.99		24.22		47,420		0.00	%		0.60	%	1.75	%		(6.02	)%	(4.92	)%

174

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

Guggenheim Floating Rate Strategies (Series F)
2022		300	$	11.64	$	11.64	$	3,414		2.68	%		1.00	%	1.00	%		(1.84	)%	(1.84	)%
2021		309		11.86		11.86		3,669		2.75	%		1.00	%	1.00	%		1.48	%	1.48	%
2020		340		11.68		11.68		3,976		4.01	%		1.00	%	1.00	%		(0.99	)%	(0.99	)%
2019		469		11.80		11.80		5,529		3.75	%		1.00	%	1.00	%		6.53	%	6.53	%
2018		366		11.08		11.08		4,059		2.96	%		1.00	%	1.00	%		(1.80	)%	(1.80	)%
Guggenheim Global Managed Futures Strategy
2022		51		11.19		11.19		566		3.75	%		1.00	%	1.00	%		10.18	%	10.18	%
2021		37		10.15		10.15		378		0.00	%		1.00	%	1.00	%		(0.07	)%	(0.07	)%
2020		190		10.16		10.16		1,929		7.53	%		1.00	%	1.00	%		1.57	%	1.57	%
2019		168		10.00		10.00		1,685		0.36	%		1.00	%	1.00	%		7.06	%	7.06	%
2018		39		9.34		9.34		363		0.00	%		1.00	%	1.00	%		(9.94	)%	(9.94	)%
Guggenheim Long Short Equity
2022		11		11.88		11.88		130		0.41	%		1.00	%	1.00	%		(15.24	)%	(15.24	)%
2021		12		14.02		14.02		168		0.86	%		1.00	%	1.00	%		22.56	%	22.56	%
2020		15		11.44		11.44		167		0.67	%		1.00	%	1.00	%		3.88	%	3.88	%
2019		22		11.01		11.01		243		0.49	%		1.00	%	1.00	%		4.48	%	4.48	%
2018		29		10.54		10.54		309		0.00	%		1.00	%	1.00	%		(6.03	)%	(6.03	)%
Guggenheim Multi-Hedge Strategies
2022		54		11.38		11.38		619		1.28	%		1.00	%	1.00	%		(4.36	)%	(4.36	)%
2021		60		11.90		11.90		712		0.00	%		1.00	%	1.00	%		7.02	%	7.02	%
2020		106		11.12		11.12		1,183		1.66	%		1.00	%	1.00	%		6.32	%	6.32	%
2019		70		10.46		10.46		728		2.38	%		1.00	%	1.00	%		3.96	%	3.96	%
2018		71		10.06		10.06		712		0.00	%		1.00	%	1.00	%		(6.03	)%	(6.03	)%
Invesco V.I. American Franchise I
2022		308		16.75		13.49		4,652		0.00	%		0.70	%	1.65	%		(31.59	)%	(32.25	)%
2021		333		24.48		19.91		7,392		0.00	%		0.70	%	1.65	%		11.14	%	10.08	%
2020		395		18.09		22.03		7,874		0.07	%		0.70	%	1.65	%		40.01	%	41.36	%
2019		423		12.92		15.58		6,020		0.00	%		0.70	%	1.65	%		34.50	%	35.80	%
2018		492		9.61		11.47		5,161		0.00	%		0.70	%	1.65	%		(5.22	)%	(4.30	)%

175

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

Invesco V.I. American Franchise II
2022		111	$	39.62	$	31.93	$	2,275		0.00	%		0.60	%	1.70	%		(31.71	)%	(32.46	)%
2021		115		58.01		47.28		3,506		0.00	%		0.60	%	1.70	%		10.98	%	9.75	%
2020		132		17.31		64.18		3,542		0.00	%		0.60	%	1.70	%		39.59	%	41.15	%
2019		160		12.40		45.56		3,056		0.00	%		0.60	%	1.70	%		34.11	%	35.61	%
2018		200		9.24		33.67		2,830		0.00	%		0.60	%	1.70	%		(5.53	)%	(4.47	)%
Invesco V.I. American Value II
2022		3,374		31.76		21.03		75,694		0.32	%		0.60	%	1.75	%		(3.44	)%	(4.56	)%
2021		4,000		32.89		22.03		93,953		0.24	%		0.60	%	1.75	%		26.86	%	25.40	%
2020		4,329		11.00		25.93		86,143		0.48	%		0.60	%	1.75	%		(0.91	)%	0.25	%
2019		4,204		10.98		25.86		86,258		0.46	%		0.60	%	1.75	%		4.66	%	23.96	%
2018		2,775		14.47		20.86		46,167		0.25	%		0.60	%	1.75	%		(14.40	)%	(13.39	)%
Invesco V.I. Balanced Risk Allocation II
2022		3,795		17.48		12.99		55,653		7.06	%		0.60	%	1.75	%		(15.03	)%	(16.01	)%
2021		4,135		20.57		15.46		71,963		3.01	%		0.60	%	1.75	%		8.61	%	7.35	%
2020		4,430		14.40		18.94		71,332		6.97	%		0.60	%	1.75	%		8.07	%	9.33	%
2019		5,257		13.33		17.33		77,772		0.00	%		0.60	%	1.75	%		12.88	%	14.19	%
2018		5,849		11.81		15.17		76,342		1.33	%		0.60	%	1.75	%		(14.40	)%	(13.39	)%
Invesco V.I. Capital Appreciation Fund I
2022		151		34.76		40.66		6,361		0.00	%		0.70	%	1.80	%		(31.27	)%	(32.03	)%
2021		169		50.58		59.82		10,454		0.00	%		0.70	%	1.80	%		21.71	%	20.37	%
2020		183		38.27		55.79		9,352		0.00	%		0.70	%	1.80	%		34.13	%	35.63	%
2019		214		28.33		41.36		8,121		0.06	%		0.70	%	1.80	%		33.75	%	35.24	%
2018		238		21.03		30.75		6,685		0.34	%		0.70	%	1.80	%		(7.43	)%	(6.39	)%
Invesco V.I. Capital Appreciation Fund II
2022		734		33.41		38.73		23,130		0.00	%		0.60	%	1.80	%		(31.38	)%	(32.20	)%
2021		1,628		48.68		57.13		71,762		0.00	%		0.60	%	1.80	%		21.55	%	20.08	%
2020		1,910		14.73		53.41		70,047		0.00	%		0.60	%	1.80	%		33.79	%	35.42	%
2019		2,644		10.90		39.70		71,944		0.00	%		0.60	%	1.80	%		4.46	%	35.03	%
2018		1,332		16.81		29.59		28,858		0.00	%		0.60	%	1.80	%		(7.66	)%	6.74	%

176

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

Invesco V.I. Comstock I
2022		488	$	51.78	$	40.30	$	22,482		1.56	%		0.70	%	1.80	%		0.42	%	(0.69	)%
2021		552		51.57		40.58		25,467		1.89	%		0.70	%	1.80	%		32.43	%	30.97	%
2020		618		30.98		38.94		21,630		2.08	%		0.70	%	1.80	%		(2.64	)%	(1.55	)%
2019		693		31.82		39.55		24,752		1.98	%		0.70	%	1.80	%		23.05	%	24.42	%
2018		786		25.86		31.79		22,654		1.81	%		0.70	%	1.80	%		(13.75	)%	(12.78	)%
Invesco V.I. Comstock II
2022		3,849		16.69		38.36		142,635		1.06	%		0.30	%	1.80	%		0.54	%	(0.96	)%
2021		4,665		37.71		38.73		174,716		1.60	%		0.60	%	1.80	%		32.25	%	30.65	%
2020		5,582		10.74		37.25		163,172		1.59	%		0.60	%	1.80	%		(2.87	)%	(1.68	)%
2019		5,848		10.94		37.93		174,628		1.78	%		0.60	%	1.80	%		4.40	%	24.19	%
2018		4,837		16.48		30.57		126,042		1.62	%		0.60	%	1.80	%		(13.95	)%	(12.90	)%
Invesco V.I. Conservative Balance II
2022		1,436		9.01		8.84		11,948		1.74	%		0.30	%	1.30	%		(17.27	)%	(18.10	)%
2021		107		10.89		10.80		1,125		0.67	%		0.30	%	1.30	%		4.76	%	3.89	%
2020		-		-		-		-		-			-		-			-		-
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
Invesco V.I. Discovery Mid Cap Growth Fund I
2022		80		31.42		36.68		3,094		0.00	%		0.70	%	1.80	%		(31.46	)%	(32.22	)%
2021		84		45.84		54.12		4,884		0.00	%		0.70	%	1.80	%		18.27	%	16.96	%
2020		94		37.53		51.95		4,638		0.03	%		0.70	%	1.80	%		38.16	%	39.71	%
2019		73		26.90		37.39		2,580		0.00	%		0.70	%	1.80	%		36.86	%	38.39	%
2018		86		19.47		27.17		2,233		0.00	%		0.70	%	1.80	%		(7.78	)%	(6.74	)%
Invesco V.I. Discovery Mid Cap Growth Fund II
2022		834		37.38		11.70		22,744		0.00	%		0.60	%	1.75	%		(31.54	)%	(32.33	)%
2021		1,138		54.60		17.29		40,110		0.00	%		0.60	%	1.75	%		18.08	%	16.72	%
2020		1,370		14.81		116.50		47,696		0.00	%		0.60	%	1.75	%		37.86	%	39.40	%
2019		28		24.59		46.89		892		0.00	%		0.60	%	1.80	%		36.51	%	38.18	%
2018		28		17.88		34.00		652		0.00	%		0.60	%	1.80	%		(8.00	)%	(6.87	)%

177

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

Invesco V.I. Equity and Income II
2022		4,817	$	32.13	$	28.64	$	130,536		1.02	%		0.60	%	1.80	%		(8.27	)%	(9.37	)%
2021		8,550		35.02		31.60		239,777		1.64	%		0.60	%	1.80	%		17.64	%	16.22	%
2020		9,781		11.51		33.07		235,750		1.86	%		0.60	%	1.80	%		7.68	%	8.99	%
2019		11,548		17.02		30.38		255,029		2.95	%		0.60	%	1.80	%		17.85	%	19.29	%
2018		6,733		14.43		25.49		137,306		2.51	%		0.60	%	1.80	%		(11.36	)%	(10.27	)%
Invesco V.I. Global Fund I
2022		130		46.64		46.79		6,366		0.00	%		0.70	%	1.80	%		(32.24	)%	(32.99	)%
2021		140		68.84		69.83		10,150		0.00	%		0.70	%	1.80	%		14.68	%	13.41	%
2020		152		55.28		69.12		9,721		0.62	%		0.70	%	1.80	%		25.34	%	26.75	%
2019		170		43.79		54.84		8,589		0.94	%		0.70	%	1.80	%		29.42	%	30.87	%
2018		194		33.60		42.14		7,517		1.02	%		0.70	%	1.80	%		(14.75	)%	(13.79	)%
Invesco V.I. Global Fund II
2022		4,390		33.26		44.61		161,988		0.00	%		0.60	%	1.80	%		(32.34	)%	(33.16	)%
2021		6,841		49.17		66.74		315,560		0.00	%		0.60	%	1.80	%		14.48	%	13.10	%
2020		8,258		13.95		66.24		336,381		0.38	%		0.60	%	1.80	%		25.05	%	26.57	%
2019		11,046		19.09		52.68		352,148		0.71	%		0.60	%	1.80	%		29.09	%	30.67	%
2018		6,854		14.78		40.58		204,556		0.92	%		0.60	%	1.80	%		(14.96	)%	(13.91	)%
Invesco V.I. Global Real Estate II
2022		238		8.16		11.72		2,650		0.85	%		0.75	%	1.75	%		(25.70	)%	(26.45	)%
2021		954		10.99		15.93		15,180		2.68	%		0.75	%	1.75	%		24.50	%	23.25	%
2020		965		8.83		13.94		12,573		0.84	%		0.75	%	1.75	%		(14.09	)%	(13.22	)%
2019		1,150		13.44		16.08		17,271		5.29	%		0.90	%	1.75	%		20.50	%	21.54	%
2018		426		11.07		13.23		5,350		5.10	%		0.90	%	1.75	%		(7.98	)%	(7.18	)%
Invesco V.I. Global Strategic Income Fund I
2022		250		22.50		17.98		4,963		0.00	%		0.70	%	1.80	%		(12.08	)%	(13.05	)%
2021		285		25.60		20.68		6,476		4.47	%		0.70	%	1.80	%		(4.09	)%	(5.15	)%
2020		318		21.80		26.69		7,581		5.39	%		0.70	%	1.80	%		1.54	%	2.68	%
2019		367		21.47		25.99		8,564		3.90	%		0.70	%	1.80	%		8.81	%	10.03	%
2018		426		19.73		23.62		9,098		4.90	%		0.70	%	1.80	%		(6.13	)%	(5.07	)%

178

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

Invesco V.I. Global Strategic Income Fund II
2022		15,879	$	16.20	$	17.11	$	223,228		0.00	%		0.60	%	1.80	%		(12.24	)%	(13.30	)%
2021		17,363		18.47		19.74		280,436		4.32	%		0.60	%	1.80	%		(4.14	)%	(5.30	)%
2020		17,132		10.47		25.51		289,028		5.00	%		0.60	%	1.80	%		1.14	%	2.37	%
2019		18,912		11.03		24.94		309,886		3.44	%		0.60	%	1.80	%		8.62	%	9.94	%
2018		21,838		10.15		22.71		327,166		4.58	%		0.60	%	1.80	%		(6.26	)%	(5.11	)%
Invesco V.I. Government Securities II
2022		12,704		8.74		8.93		122,686		1.65	%		0.30	%	1.75	%		(10.84	)%	(12.14	)%
2021		13,796		9.81		10.16		150,617		2.34	%		0.30	%	1.75	%		(2.73	)%	(4.14	)%
2020		11,671		10.47		12.12		132,867		2.17	%		0.60	%	1.75	%		4.12	%	5.34	%
2019		11,593		9.95		11.51		126,240		2.16	%		0.60	%	1.75	%		(0.32	)%	5.12	%
2018		12,922		9.80		10.95		134,725		1.97	%		0.60	%	1.75	%		(1.47	)%	0.31	%
Invesco V.I. Growth & Income I
2022		668		41.69		32.44		24,605		1.58	%		0.70	%	1.80	%		(6.41	)%	(7.44	)%
2021		736		44.54		35.05		29,154		1.60	%		0.70	%	1.80	%		27.61	%	26.20	%
2020		806		27.78		34.91		25,146		1.94	%		0.70	%	1.80	%		0.26	%	1.38	%
2019		923		27.70		34.43		28,544		1.86	%		0.70	%	1.80	%		22.94	%	24.32	%
2018		1,042		22.53		27.70		26,054		2.12	%		0.70	%	1.80	%		(14.95	)%	(13.99	)%
Invesco V.I. Growth & Income II
2022		10,665		36.27		30.87		330,787		0.73	%		0.60	%	1.80	%		(6.56	)%	(7.69	)%
2021		18,938		38.82		33.44		604,214		1.32	%		0.60	%	1.80	%		27.42	%	25.89	%
2020		23,895		10.91		33.38		602,185		1.30	%		0.60	%	1.80	%		0.02	%	1.24	%
2019		26,686		19.68		33.01		662,091		1.81	%		0.60	%	1.80	%		22.61	%	24.10	%
2018		13,102		16.04		26.62		291,501		2.12	%		0.60	%	1.80	%		(15.15	)%	(14.11	)%
Invesco V.I. EQV International Equity Fund II
2022		1,975		14.19		12.53		27,253		1.10	%		0.60	%	1.65	%		(18.99	)%	(19.85	)%
2021		2,480		17.52		16.20		42,582		0.92	%		0.60	%	1.75	%		4.97	%	3.76	%
2020		4,418		12.03		16.83		73,418		1.82	%		0.60	%	1.75	%		11.75	%	13.06	%
2019		5,531		10.65		14.93		81,640		1.80	%		0.60	%	1.75	%		4.19	%	27.47	%
2018		2,612		10.67		11.75		30,426		1.04	%		0.60	%	1.65	%		(16.61	)%	(15.72	)%

179

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

Invesco V.I. Main Street Fund I
2022		180	$	32.27	$	33.74	$	6,390		1.34	%		0.70	%	1.80	%		(20.69	)%	(21.57	)%
2021		203		40.69		43.02		9,111		0.70	%		0.70	%	1.80	%		26.68	%	25.28	%
2020		227		29.59		38.55		8,118		1.35	%		0.70	%	1.80	%		11.89	%	13.15	%
2019		265		26.25		34.26		8,432		1.11	%		0.70	%	1.80	%		29.71	%	31.16	%
2018		298		20.10		26.27		7,269		1.22	%		0.70	%	1.80	%		(9.55	)%	(8.53	)%
Invesco V.I. Main Street Fund II
2022		3,658		11.83		25.34		82,440		0.95	%		0.30	%	1.75	%		(20.55	)%	(21.70	)%
2021		4,303		14.89		32.36		128,947		0.53	%		0.30	%	1.75	%		26.85	%	25.01	%
2020		3,849		12.08		42.86		105,790		1.08	%		0.60	%	1.75	%		11.71	%	13.01	%
2019		3,842		10.70		38.01		100,516		0.91	%		0.60	%	1.75	%		3.80	%	30.95	%
2018		3,244		17.90		29.08		65,184		1.03	%		0.60	%	1.75	%		(9.71	)%	(8.65	)%
Invesco V.I. Main Street Small Cap Fund II
2022		77		9.42		8.77		667		0.42	%		0.30	%	1.20	%		(16.29	)%	(4.97	)%
2021		9		10.16		11.19		96		0.04	%		0.75	%	1.00	%		(6.20	)%	3.23	%
2020		-		-		-		-		-			-		-			-		-
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
Invesco V.I. Small Cap Equity II
2022		644		12.66		18.36		11,147		0.00	%		0.75	%	1.65	%		(21.32	)%	(22.04	)%
2021		813		16.09		23.32		18,390		0.00	%		0.75	%	1.75	%		19.19	%	18.00	%
2020		940		13.50		21.31		18,931		0.02	%		0.75	%	1.75	%		24.65	%	25.92	%
2019		1,043		10.72		16.95		17,145		0.00	%		0.75	%	1.75	%		3.49	%	25.19	%
2018		554		10.60		13.54		7,450		0.00	%		0.90	%	1.65	%		(16.68	)%	16.04	%
Invesco V.I. U.S. Government Money Portfolio I
2022		286,778		10.05		1.11		1,752,409		2.38	%		0.30	%	1.80	%		0.96	%	(0.55	)%
2021		99,001		10.96		1.12		421,721		0.01	%		0.60	%	1.80	%		(0.59	)%	(1.79	)%
2020		84,777		0.91		11.03		326,367		0.32	%		0.60	%	1.80	%		(1.59	)%	(0.38	)%
2019		87,525		0.92		11.07		330,128		1.22	%		0.60	%	1.80	%		(0.12	)%	1.10	%
2018		457,088		0.91		10.95		2,969,385		0.83	%		0.60	%	1.80	%		(0.48	)%	0.74	%

180

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

Janus Henderson Balanced Service Class
2022		86	$	8.87	$	8.87	$	765		0.80	%		1.20	%	1.20	%		(5.03	)%	(5.03	)%
2021		-		-		-		-		-			-		-			-		-
2020		-		-		-		-		-			-		-			-		-
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
Janus Henderson Forty - Service Class
2022		8		7.60		7.60		63		0.12	%		1.20	%	1.20	%		(9.44	)%	(9.44	)%
2021		-		-		-		-		-			-		-			-		-
2020		-		-		-		-		-			-		-			-		-
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
Janus Henderson Global Technology - Service Class
2022		5		7.44		7.44		35		0.00	%		1.20	%	1.20	%		(11.78	)%	(11.78	)%
2021		-		-		-		-		-			-		-			-		-
2020		-		-		-		-		-			-		-			-		-
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
Janus Henderson Overseas Portfolio - Service Class
2022		4		9.46		9.46		36		1.73	%		1.20	%	1.20	%		5.91	%	5.91	%
2021		-		-		-		-		-			-		-			-		-
2020		-		-		-		-		-			-		-			-		-
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
Lord Abbett Bond Debenture VC
2022		29,193		9.79		22.41		478,616		4.22	%		0.30	%	1.80	%		(13.06	)%	(14.37	)%
2021		29,804		11.27		26.17		583,809		3.10	%		0.30	%	1.80	%		2.97	%	1.42	%
2020		28,054		10.84		31.76		556,026		3.51	%		0.60	%	1.80	%		5.38	%	6.66	%
2019		31,794		10.18		29.81		594,211		3.83	%		0.60	%	1.80	%		1.46	%	12.67	%
2018		35,640		12.74		26.48		592,127		4.26	%		0.60	%	1.80	%		(6.40	)%	5.25	%

181

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

Lord Abbett Dividend Growth Fund
2022		3,382	$	12.83	$	41.14	$	92,723		0.74	%		0.30	%	1.80	%		(13.81	)%	(15.10	)%
2021		4,058		14.88		48.46		135,244		0.71	%		0.30	%	1.80	%		25.24	%	24.47	%
2020		3,888		11.98		47.36		115,152		0.90	%		0.60	%	1.80	%		13.34	%	14.72	%
2019		4,068		10.46		41.33		110,319		1.73	%		0.60	%	1.80	%		3.12	%	25.69	%
2018		3,530		17.32		32.91		78,067		1.65	%		0.60	%	1.80	%		(6.40	)%	5.25	%
Lord Abbett Growth & Income VC
2022		1,927		30.32		24.74		56,411		1.19	%		0.60	%	1.80	%		(9.98	)%	(11.06	)%
2021		2,210		33.68		27.82		72,039		1.02	%		0.60	%	1.80	%		28.25	%	26.70	%
2020		2,617		19.29		31.47		66,910		1.49	%		0.60	%	1.80	%		0.85	%	2.08	%
2019		2,928		19.12		30.89		73,493		1.64	%		0.60	%	1.80	%		20.29	%	21.76	%
2018		3,266		15.89		25.42		67,883		1.34	%		0.60	%	1.75	%		9.81	%	(8.70	)%
Lord Abbett Growth Opportunities VC
2022		864		9.10		19.98		24,782		0.00	%		0.30	%	1.75	%		(32.73	)%	(33.71	)%
2021		1,179		13.53		30.14		50,134		0.00	%		0.30	%	1.75	%		6.14	%	4.60	%
2020		2,131		14.78		61.25		83,665		0.00	%		0.60	%	1.75	%		36.94	%	38.54	%
2019		2,969		21.04		44.26		84,520		0.00	%		0.60	%	1.75	%		33.98	%	35.55	%
2018		1,206		15.70		32.68		30,047		0.00	%		0.60	%	1.75	%		(4.60	)%	(3.47	)%
Lord Abbett Mid Cap Stock VC
2022		1,477		29.66		24.78		41,275		0.72	%		0.60	%	1.80	%		(11.75	)%	(12.81	)%
2021		1,853		33.60		28.42		57,775		0.57	%		0.60	%	1.80	%		27.93	%	26.39	%
2020		2,169		10.85		31.31		53,473		0.95	%		0.60	%	1.80	%		0.65	%	1.88	%
2019		2,341		16.28		30.79		56,947		0.97	%		0.60	%	1.80	%		20.44	%	21.91	%
2018		2,256		13.51		25.31		46,892		0.64	%		0.60	%	1.80	%		(16.57	)%	(15.55	)%
Lord Abbett Series Fundamental Equity VC
2022		3,425		28.42		19.48		83,754		0.72	%		0.60	%	1.75	%		(12.51	)%	(13.52	)%
2021		7,318		32.48		22.53		198,617		0.79	%		0.60	%	1.75	%		26.55	%	25.09	%
2020		8,911		10.76		25.67		192,293		1.07	%		0.60	%	1.75	%		(0.01	)%	1.16	%
2019		10,094		18.01		25.37		215,567		1.65	%		0.60	%	1.75	%		19.39	%	20.79	%
2018		5,536		15.09		21.01		102,122		0.99	%		0.60	%	1.75	%		(9.77	)%	(8.71	)%

182

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

Lord Abbett Series Short Duration Income VC
2022		233	$	9.47	$	9.30	$	2,179		5.23	%		0.30	%	1.30	%		(5.34	)%	(6.29	)%
2021		24		10.01		9.93		235		2.74	%		0.30	%	1.30	%		(0.05	)%	(0.88	)%
2020		-		-		-		-		-			-		-			-		-
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
MFS Growth Series IC
2022		92		39.67		50.93		4,823		0.00	%		0.70	%	1.80	%		(32.11	)%	(32.86	)%
2021		100		58.44		75.86		7,796		0.00	%		0.70	%	1.80	%		22.67	%	21.31	%
2020		115		43.88		70.20		7,379		0.00	%		0.70	%	1.80	%		29.49	%	30.94	%
2019		128		33.64		53.92		6,358		0.00	%		0.70	%	1.80	%		35.67	%	37.18	%
2018		138		24.62		39.52		4,990		0.10	%		0.70	%	1.80	%		0.81	%	1.95	%
MFS Growth Series SC
2022		895		54.00		30.26		37,099		0.00	%		0.60	%	1.75	%		(32.21	)%	(33.00	)%
2021		898		79.67		45.16		54,782		0.00	%		0.60	%	1.75	%		22.50	%	21.08	%
2020		1,091		37.29		67.18		54,233		0.00	%		0.60	%	1.75	%		29.24	%	30.75	%
2019		1,368		28.86		51.72		52,134		0.00	%		0.60	%	1.80	%		35.30	%	36.95	%
2018		1,577		21.32		38.01		44,160		0.00	%		0.60	%	1.80	%		0.56	%	1.79	%
MFS Investors Trust IC
2022		129		35.30		37.38		5,141		0.61	%		0.70	%	1.80	%		(17.07	)%	(17.99	)%
2021		155		42.57		45.58		7,448		0.63	%		0.70	%	1.80	%		25.93	%	24.53	%
2020		176		31.13		41.09		6,771		0.58	%		0.70	%	1.80	%		11.82	%	13.07	%
2019		212		27.65		36.54		7,288		0.70	%		0.70	%	1.80	%		29.22	%	30.66	%
2018		240		21.24		28.12		6,339		0.66	%		0.70	%	1.80	%		(7.20	)%	(6.15	)%
MFS Investors Trust SC
2022		1,203		42.04		26.20		41,340		0.36	%		0.60	%	1.75	%		(17.19	)%	(18.14	)%
2021		1,366		50.77		32.00		56,861		0.41	%		0.60	%	1.75	%		25.75	%	24.30	%
2020		1,703		25.75		41.89		56,467		0.39	%		0.60	%	1.75	%		11.61	%	12.92	%
2019		2,022		23.07		37.18		59,600		0.49	%		0.60	%	1.75	%		28.95	%	30.46	%
2018		2,400		17.89		28.55		54,461		0.45	%		0.60	%	1.75	%		(7.36	)%	(6.28	)%

183

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

MFS New Discovery IC
2022		31	$	54.62	$	56.84	$	1,858		0.00	%		0.70	%	1.80	%		(30.25	)%	(31.02	)%
2021		35		78.31		82.40		3,043		0.00	%		0.70	%	1.80	%		1.09	%	(0.03	)%
2020		38		71.34		92.53		3,296		0.00	%		0.70	%	1.80	%		43.27	%	44.87	%
2019		44		49.45		64.23		2,659		0.00	%		0.70	%	1.80	%		39.15	%	40.71	%
2018		48		35.28		45.90		2,051		0.00	%		0.70	%	1.80	%		(3.26	)%	(2.17	)%
MFS New Discovery SC
2022		969		43.15		21.10		45,049		0.00	%		0.60	%	1.75	%		(30.41	)%	(31.22	)%
2021		871		62.01		30.68		57,785		0.00	%		0.60	%	1.75	%		0.96	%	(0.20	)%
2020		1,048		30.74		88.51		69,095		0.00	%		0.60	%	1.75	%		43.04	%	44.71	%
2019		1,424		21.49		61.57		64,809		0.00	%		0.60	%	1.80	%		38.74	%	40.43	%
2018		1,792		15.48		44.13		58,436		0.00	%		0.60	%	1.80	%		(3.49	)%	(2.31	)%
MFS Research IC
2022		102		37.93		40.13		4,368		0.45	%		0.70	%	1.80	%		(17.79	)%	(18.70	)%
2021		120		46.14		49.36		6,260		0.53	%		0.70	%	1.80	%		23.93	%	22.56	%
2020		138		34.29		45.21		5,838		0.68	%		0.70	%	1.80	%		14.50	%	15.78	%
2019		154		29.73		39.26		5,674		0.79	%		0.70	%	1.80	%		30.56	%	32.02	%
2018		173		22.61		29.91		4,869		0.74	%		0.70	%	1.80	%		(6.10	)%	5.04	%
MFS Research SC
2022		80		45.08		26.92		3,011		0.18	%		0.60	%	1.75	%		(17.93	)%	(18.87	)%
2021		89		54.93		33.18		4,109		0.33	%		0.60	%	1.75	%		23.77	%	22.34	%
2020		102		27.12		46.54		3,854		0.49	%		0.60	%	1.75	%		14.28	%	15.62	%
2019		116		23.73		40.33		3,800		0.60	%		0.60	%	1.75	%		30.29	%	31.81	%
2018		137		18.22		30.66		3,420		0.74	%		0.60	%	1.75	%		(6.30	)%	(5.20	)%
MFS Total Return IC
2022		438		34.08		32.77		15,229		1.62	%		0.70	%	1.80	%		(10.21	)%	(11.20	)%
2021		495		37.96		36.91		19,285		1.82	%		0.70	%	1.80	%		13.32	%	12.07	%
2020		561		30.85		36.97		19,408		2.11	%		0.70	%	1.80	%		7.84	%	9.05	%
2019		639		28.41		34.10		20,408		2.36	%		0.70	%	1.80	%		18.22	%	19.54	%
2018		729		23.86		28.68		19,571		2.25	%		0.70	%	1.80	%		(7.57	)%	(6.44	)%

184

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

MFS Total Return SC
2022		1,465	$	26.56	$	31.19	$	41,300		1.40	%		0.60	%	1.80	%		(10.38	)%	(11.46	)%
2021		1,682		29.63		35.23		53,045		1.62	%		0.60	%	1.80	%		13.15	%	11.79	%
2020		1,846		17.85		35.38		51,632		1.92	%		0.60	%	1.80	%		7.55	%	8.86	%
2019		2,126		16.58		32.71		54,427		2.15	%		0.60	%	1.80	%		17.96	%	19.40	%
2018		2,438		14.05		27.58		52,502		1.99	%		0.60	%	1.80	%		(7.57	)%	(6.44	)%
MFS Utilities IC
2022		31		59.30		53.59		1,761		2.48	%		0.70	%	1.65	%		0.05	%	(0.90	)%
2021		33		59.27		54.08		1,884		1.62	%		0.70	%	1.65	%		13.29	%	12.21	%
2020		40		48.18		52.32		2,019		2.25	%		0.70	%	1.65	%		4.16	%	5.16	%
2019		50		46.00		50.02		2,382		3.99	%		0.70	%	1.65	%		23.01	%	24.19	%
2018		63		37.19		40.50		2,455		1.17	%		0.70	%	1.65	%		(0.62	)%	0.35	%
MFS Utilities SC
2022		504		56.27		20.01		19,638		2.10	%		0.60	%	1.75	%		(0.12	)%	(1.27	)%
2021		642		56.34		20.27		25,021		1.48	%		0.60	%	1.75	%		13.14	%	11.83	%
2020		737		18.12		50.04		25,441		2.06	%		0.60	%	1.75	%		3.78	%	4.99	%
2019		859		17.46		47.97		27,706		3.82	%		0.60	%	1.75	%		22.62	%	24.05	%
2018		1,058		14.24		38.92		27,588		0.86	%		0.60	%	1.75	%		(0.96	)%	0.20	%
MFS VIT II Emerging Markets Equity SC
2022		27		8.96		8.26		238		3.78	%		0.90	%	1.65	%		(20.66	)%	(21.26	)%
2021		27		11.29		10.49		299		0.27	%		0.90	%	1.65	%		(7.86	)%	(8.56	)%
2020		29		11.47		12.48		349		2.53	%		0.90	%	1.65	%		8.51	%	9.34	%
2019		39		10.57		11.42		430		0.40	%		0.90	%	1.65	%		18.20	%	19.10	%
2018		48		8.94		9.60		449		0.11	%		0.90	%	1.65	%		(15.55	)%	(14.91	)%
MFS VIT II International Value SC
2022		827		19.99		19.14		16,508		0.45	%		0.90	%	1.30	%		(24.44	)%	(24.74	)%
2021		865		26.45		25.43		22,849		0.14	%		0.90	%	1.30	%		9.28	%	8.84	%
2020		1,021		18.88		24.20		24,678		0.73	%		0.90	%	1.30	%		18.65	%	19.13	%
2019		1,290		15.86		20.32		26,178		1.49	%		0.90	%	1.30	%		24.02	%	24.52	%
2018		1,467		12.75		16.32		23,902		0.92	%		0.90	%	1.30	%		(10.90	)%	(10.54	)%

185

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

MFS VIT II MA Investors Growth Stock IC
2022		71	$	22.59	$	20.71	$	1,528		0.09	%		0.70	%	1.80	%		(19.82	)%	(20.71	)%
2021		80		28.17		26.12		2,148		0.24	%		0.70	%	1.80	%		25.09	%	23.71	%
2020		90		21.11		22.52		1,951		0.42	%		0.70	%	1.80	%		20.06	%	21.47	%
2019		103		17.54		18.51		1,845		0.60	%		0.70	%	1.80	%		37.44	%	38.97	%
2018		118		12.77		13.32		1,536		0.60	%		0.70	%	1.80	%		(1.01	)%	0.10	%
MFS VIT II MA Investors Growth Stock SC
2022		1,343		22.34		20.40		29,346		0.00	%		0.60	%	1.75	%		(19.93	)%	(20.85	)%
2021		1,478		27.90		25.78		40,451		0.03	%		0.60	%	1.75	%		24.90	%	23.46	%
2020		1,793		20.88		22.34		39,387		0.21	%		0.60	%	1.75	%		6.28	%	7.53	%
2019		2,201		17.35		18.39		39,929		0.33	%		0.60	%	1.80	%		37.08	%	38.75	%
2018		3,092		12.65		13.25		40,555		0.34	%		0.60	%	1.80	%		(1.24	)%	(0.03	)%
MFS VIT Total Return Bond SC
2022		26,559		12.70		10.04		303,873		2.39	%		0.60	%	1.75	%		(14.70	)%	(15.68	)%
2021		29,030		14.89		11.91		391,163		2.54	%		0.60	%	1.75	%		(1.66	)%	(2.80	)%
2020		29,238		12.25		15.14		401,842		3.09	%		0.60	%	1.75	%		6.28	%	7.53	%
2019		33,789		11.53		14.08		433,094		3.16	%		0.60	%	1.75	%		8.00	%	9.26	%
2018		39,442		10.67		12.89		464,112		3.00	%		0.60	%	1.75	%		(3.06	)%	1.92	%
MFS VIT Value SC
2022		4,835		34.50		25.46		150,061		1.07	%		0.60	%	1.75	%		(6.70	)%	(7.78	)%
2021		5,868		36.98		27.61		196,057		1.14	%		0.60	%	1.75	%		24.41	%	22.97	%
2020		7,186		22.45		29.72		193,873		1.23	%		0.60	%	1.75	%		1.42	%	2.60	%
2019		7,799		22.14		28.97		205,858		1.94	%		0.60	%	1.75	%		27.24	%	28.73	%
2018		9,144		17.40		22.50		188,402		1.34	%		0.60	%	1.75	%		(11.93	)%	(10.90	)%
Morgan Stanley VIF Core Plus Fixed Income Portfolio
2022		4		9.04		9.04		39		0.00	%		1.20	%	1.20	%		(1.44	)%	(1.44	)%
2021		-		-		-		-		-			-		-			-		-
2020		-		-		-		-		-			-		-			-		-
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-

186

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

Morgan Stanley VIF Global Real Estate II
2022		426	$	11.93	$	10.00	$	5,023		3.95	%		0.60	%	1.75	%		(26.64	)%	(27.49	)%
2021		457		16.26		13.78		7,402		4.03	%		0.60	%	1.75	%		23.09	%	21.67	%
2020		536		11.33		23.35		1,330		5.87	%		0.60	%	1.75	%		(16.34	)%	(15.36	)%
2019		506		13.54		27.64		7,949		2.70	%		0.60	%	1.75	%		15.99	%	17.35	%
2018		534		11.68		23.60		7,266		3.24	%		0.60	%	1.75	%		(9.81	)%	(8.75	)%
Morgan Stanley VIF Global Strategy Portfolio
2022		2		8.67		8.67		17		0.00	%		1.20	%	1.20	%		(1.27	)%	(1.27	)%
2021		-		-		-		-		-			-		-			-		-
2020		-		-		-		-		-			-		-			-		-
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
PIMCO Income Advisor
2022		66		9.37		9.20		613		3.60	%		0.30	%	1.30	%		(8.15	)%	(9.06	)%
2021		36		10.20		10.12		362		0.75	%		0.30	%	1.30	%		0.29	%	(0.53	)%
2020		-		-		-		-		-			-		-			-		-
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
PIMCO VIT All Asset Advisor
2022		175		11.22		12.21		2,183		4.43	%		0.75	%	1.75	%		(12.53	)%	(13.41	)%
2021		518		12.83		14.10		7,526		11.08	%		0.75	%	1.75	%		15.17	%	14.01	%
2020		580		11.14		13.33		7,363		3.06	%		0.75	%	1.75	%		6.02	%	7.10	%
2019		730		10.40		12.47		8,691		4.47	%		0.75	%	1.75	%		2.92	%	10.74	%
2018		160		10.44		11.26		1,766		2.40	%		0.90	%	1.75	%		(7.11	)%	(6.30	)%
PIMCO VIT Commodity Real Return Strategy Advantage
2022		1		9.40		9.40		6		10.91	%		0.30	%	0.30	%		(0.74	)%	(0.74	)%
2021		-		-		-		-		-			-		-			-		-
2020		-		-		-		-		-			-		-			-		-
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-

187

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

PIMCO VIT Global Diversified Allocation Portfolio
2022		400	$	12.40	$	11.78	$	4,891		4.36	%		1.00	%	1.75	%		(17.44	)%	(18.06	)%
2021		446		15.02		14.37		6,630		9.81	%		1.00	%	1.75	%		7.43	%	6.62	%
2020		471		13.48		13.99		6,534		2.86	%		1.00	%	1.75	%		2.18	%	2.95	%
2019		542		13.20		13.61		7,332		2.66	%		1.00	%	1.75	%		19.49	%	20.40	%
2018		568		11.04		11.34		6,407		2.06	%		1.00	%	1.75	%		(10.66	)%	(9.97	)%
PIMCO VIT High Yield Advance
2022		20		9.26		9.09		186		4.23	%		0.30	%	1.30	%		(10.65	)%	(11.54	)%
2021		12		10.31		10.28		127		1.03	%		1.00	%	1.30	%		0.77	%	0.51	%
2020		-		-		-		-		-			-		-			-		-
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
PIMCO VIT Long-Term US Government Advisor
2022		1,893		6.49		10.57		20,470		1.83	%		0.30	%	1.75	%		(29.16	)%	(30.19	)%
2021		1,953		9.16		15.14		30,193		1.45	%		0.30	%	1.75	%		(5.17	)%	(6.54	)%
2020		1,812		11.34		20.04		30,865		1.86	%		0.60	%	1.75	%		15.22	%	16.57	%
2019		1,454		13.19		17.24		21,626		1.96	%		0.60	%	1.75	%		11.23	%	12.53	%
2018		1,407		11.75		15.36		18,486		2.23	%		0.60	%	1.75	%		(4.19	)%	(3.07	)%
PIMCO VIT Low Duration Advisor
2022		12,973		9.33		8.85		126,469		1.54	%		0.30	%	1.75	%		(6.12	)%	(7.48	)%
2021		14,088		9.94		9.56		147,419		0.43	%		0.30	%	1.75	%		(1.32	)%	(2.76	)%
2020		11,792		9.83		11.75		126,694		1.08	%		0.60	%	1.75	%		1.09	%	2.27	%
2019		11,779		9.73		11.49		124,470		2.67	%		0.60	%	1.75	%		0.24	%	3.30	%
2018		12,259		9.53		11.13		125,907		1.83	%		0.60	%	1.75	%		(1.52	)%	(0.36	)%
PIMCO VIT Real Return Advisor
2022		20,877		9.67		10.03		235,467		6.75	%		0.30	%	1.75	%		(12.26	)%	(13.53	)%
2021		23,187		11.02		11.60		300,617		4.94	%		0.30	%	1.75	%		5.16	%	3.64	%
2020		23,001		11.19		14.49		285,898		1.29	%		0.60	%	1.75	%		9.65	%	10.93	%
2019		28,164		10.13		13.06		315,853		1.57	%		0.60	%	1.75	%		0.62	%	7.68	%
2018		32,272		9.59		12.13		337,155		2.40	%		0.60	%	1.75	%		(4.02	)%	(2.89	)%

188

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

PIMCO VIT Short-Term Advisor
2022		6,783	$	9.95	$	9.48	$	69,195		1.51	%		0.30	%	1.75	%		(0.55	)%	(1.99	)%
2021		6,407		10.01		9.67		66,445		0.99	%		0.30	%	1.75	%		(0.45	)%	(1.90	)%
2020		6,266		9.86		11.22		65,883		1.14	%		0.60	%	1.75	%		0.35	%	1.53	%
2019		6,567		9.82		11.05		68,362		2.36	%		0.60	%	1.75	%		0.90	%	2.08	%
2018		7,043		9.73		10.82		72,157		2.06	%		0.60	%	1.75	%		(0.35	)%	0.82	%
PIMCO VIT Total Return Advisor
2022		55,640		8.55		9.72		606,616		2.42	%		0.30	%	1.75	%		(14.64	)%	(15.88	)%
2021		59,431		10.02		11.55		767,115		1.73	%		0.30	%	1.75	%		(1.66	)%	(3.09	)%
2020		56,007		10.19		14.75		746,621		1.97	%		0.30	%	1.75	%		6.64	%	7.89	%
2019		62,029		10.01		13.67		770,255		2.93	%		0.60	%	1.75	%		(0.01	)%	7.60	%
2018		70,190		10.51		12.70		813,438		2.44	%		0.60	%	1.75	%		(2.38	)%	(1.23	)%
Protective Life Dynamic Allocation Series – Conservative
2022		3,810		9.83		10.09		39,579		1.08	%		0.30	%	1.75	%		(16.95	)%	(18.15	)%
2021		3,608		11.53		12.32		46,054		0.90	%		0.75	%	1.75	%		7.91	%	6.82	%
2020		3,368		10.69		12.29		40,357		1.16	%		0.75	%	1.75	%		1.69	%	2.72	%
2019		2,591		11.35		11.98		30,678		1.56	%		0.90	%	1.75	%		8.05	%	8.98	%
2018		2,504		10.50		10.99		27,255		1.43	%		0.90	%	1.75	%		(3.72	)%	(2.88	)%
Protective Life Dynamic Allocation Series – Growth
2022		3,907		10.02		11.52		48,110		1.09	%		0.75	%	1.75	%		(20.17	)%	(20.97	)%
2021		4,163		15.73		14.58		64,736		0.88	%		0.90	%	1.75	%		19.71	%	18.68	%
2020		4,799		12.28		13.14		62,414		1.16	%		0.90	%	1.75	%		(3.86	)%	(3.03	)%
2019		6,010		12.77		13.55		80,870		1.37	%		0.90	%	1.75	%		10.04	%	10.99	%
2018		5,800		11.61		12.21		70,454		1.18	%		0.90	%	1.75	%		(5.34	)%	(4.52	)%
Protective Life Dynamic Allocation Series – Moderate
2022		57,847		9.71		10.55		585,407		1.04	%		0.75	%	1.75	%		(18.21	)%	(19.03	)%
2021		41,543		11.88		13.02		524,872		0.78	%		0.75	%	1.75	%		11.48	%	10.36	%
2020		24,453		10.65		12.61		290,751		1.00	%		0.75	%	1.75	%		0.22	%	1.24	%
2019		16,122		10.52		12.47		200,085		1.47	%		0.75	%	1.75	%		2.71	%	9.59	%
2018		14,357		10.84		11.38		162,928		1.30	%		0.90	%	1.75	%		(4.09	)%	(3.26	)%

189

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

Royce Capital Fund Micro-Cap SC
2022		454	$	20.21	$	12.83	$	8,004		0.00	%		0.70	%	1.75	%		(23.19	)%	(24.00	)%
2021		912		26.31		16.88		19,767		0.00	%		0.70	%	1.75	%		28.62	%	27.26	%
2020		1,340		13.27		20.46		22,597		0.00	%		0.70	%	1.75	%		21.40	%	22.69	%
2019		1,619		10.93		16.67		22,304		0.00	%		0.70	%	1.75	%		17.15	%	18.40	%
2018		873		9.33		14.08		10,886		0.00	%		0.70	%	1.75	%		(10.88	)%	(9.92	)%
Royce Capital Fund Small-Cap SC
2022		7,443		22.37		15.64		137,805		0.07	%		0.60	%	1.75	%		(9.96	)%	(10.99	)%
2021		8,915		24.85		17.57		184,073		1.17	%		0.60	%	1.75	%		27.68	%	26.20	%
2020		11,258		9.97		19.46		183,315		0.71	%		0.60	%	1.75	%		(8.95	)%	(7.88	)%
2019		11,393		15.29		21.13		201,760		0.57	%		0.60	%	1.75	%		16.37	%	17.73	%
2018		5,325		13.14		17.95		84,530		0.18	%		0.60	%	1.75	%		(10.11	)%	(9.05	)%
Rydex Commodities Strategy
2022		2		5.84		5.84		9		4.72	%		1.00	%	1.00	%		21.66	%	21.66	%
2021		2		4.80		4.80		10		0.00	%		1.00	%	1.00	%		38.15	%	38.15	%
2020		3		3.47		3.47		9		0.69	%		1.00	%	1.00	%		(23.50	)%	(23.50	)%
2019		2		4.54		4.54		10		1.57	%		1.00	%	1.00	%		14.10	%	14.10	%
2018		2		3.98		3.98		9		3.60	%		1.00	%	1.00	%		(15.98	)%	(15.98	)%
Rydex Inverse Government Long Bond
2022		1		6.44		6.44		8		0.00	%		1.00	%	1.00	%		44.75	%	44.75	%
2021		2		4.45		4.45		8		0.00	%		1.00	%	1.00	%		(0.04	)%	(0.04	)%
2020		1		4.45		4.45		6		0.25	%		1.00	%	1.00	%		(21.88	)%	(21.88	)%
2019		1		5.70		5.70		7		0.00	%		1.00	%	1.00	%		(14.16	)%	(14.16	)%
2018		1		6.64		6.64		7		0.00	%		1.00	%	1.00	%		2.75	%	2.75	%
T. Rowe Price All-Cap Opportunities Portfolio
2022		64		7.85		7.85		503		0.00	%		0.75	%	0.75	%		(22.10	)%	(22.10	)%
2021		12		10.08		10.08		100		0.00	%		0.75	%	0.75	%		0.00	%	0.00	%
2020		-		-		-		-		-			-		-			-		-
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-

190

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

T. Rowe Price Blue Chip Growth Portfolio II
2022		797	$	7.23	$	7.10	$	5,117		0.00	%		0.30	%	1.30	%		(38.85	)%	(39.46	)%
2021		235		11.82		11.72		2,730		0.00	%		0.30	%	1.30	%		13.50	%	12.56	%
2020		-		-		-		-		-			-		-			-		-
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
T. Rowe Price Health Sciences Portfolio II
2022		265		8.26		9.35		2,400		0.00	%		0.75	%	1.30	%		(13.34	)%	(13.82	)%
2021		94		10.88		10.85		1,017		0.00	%		1.00	%	1.30	%		11.42	%	11.14	%
2020		-		-		-		-		-			-		-			-		-
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
T. Rowe Price Moderate Allocation
2022		44		8.03		8.03		351		1.12	%		0.75	%	0.75	%		(18.93	)%	(18.93	)%
2021		-		-		-		-		-			-		-			-		-
2020		-		-		-		-		-			-		-			-		-
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
Templeton Developing Markets VIP CL 2
2022		243		8.98		9.26		2,397		2.55	%		0.30	%	1.65	%		(22.22	)%	(23.27	)%
2021		223		11.55		12.07		2,857		1.36	%		0.30	%	1.65	%		(6.02	)%	(7.29	)%
2020		1,001		12.91		13.95		13,677		1.15	%		0.75	%	1.75	%		15.14	%	16.31	%
2019		1,323		11.21		12.02		15,632		0.71	%		0.90	%	1.75	%		24.48	%	25.56	%
2018		222		9.07		9.58		2,107		0.36	%		0.90	%	1.65	%		(17.19	)%	16.56	%
Templeton Foreign VIP CL 2
2022		5,585		12.86		9.54		67,901		2.71	%		0.60	%	1.75	%		(8.16	)%	(9.22	)%
2021		5,308		14.00		10.51		71,083		2.01	%		0.60	%	1.75	%		3.53	%	2.34	%
2020		6,991		10.27		17.93		90,070		2.52	%		0.60	%	1.75	%		(2.89	)%	(1.75	)%
2019		7,284		10.57		18.29		95,813		1.57	%		0.60	%	1.75	%		10.56	%	11.85	%
2018		6,466		9.56		16.38		77,382		2.83	%		0.60	%	1.75	%		(16.93	)%	(15.95	)%

191

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

Templeton Global Bond VIP Fund CL 2
2022		19,212	$	8.94	$	8.07	$	200,903		0.00	%		0.30	%	1.75	%		(5.23	)%	(6.61	)%
2021		22,014		15.78		8.64		245,408		0.00	%		0.60	%	1.75	%		(5.56	)%	(6.65	)%
2020		20,656		9.26		16.70		245,678		7.98	%		0.60	%	1.75	%		(6.94	)%	(5.85	)%
2019		22,523		9.95		17.74		284,602		7.02	%		0.60	%	1.75	%		0.23	%	1.40	%
2018		24,745		9.93		18.50		309,133		0.00	%		0.60	%	1.75	%		0.15	%	1.32	%
Templeton Growth VIP CL 2
2022		5,214		14.53		12.89		74,950		0.15	%		0.60	%	1.75	%		(12.03	)%	(13.05	)%
2021		5,600		16.52		14.83		91,730		1.16	%		0.60	%	1.75	%		4.24	%	3.04	%
2020		6,947		11.25		24.95		110,363		2.41	%		0.60	%	1.75	%		3.95	%	5.16	%
2019		7,550		13.03		23.77		114,808		2.62	%		0.60	%	1.75	%		13.14	%	14.46	%
2018		7,005		11.50		20.81		93,093		2.11	%		0.60	%	1.75	%		(16.35	)%	(15.36	)%
VanEck Global Hard Asset
2022		7		39.86		35.11		236		1.63	%		1.25	%	1.80	%		7.04	%	6.45	%
2021		7		37.24		32.98		250		0.42	%		1.25	%	1.80	%		17.44	%	16.78	%
2020		9		28.24		31.71		258		0.83	%		1.25	%	1.80	%		16.97	%	17.63	%
2019		7		24.14		26.96		183		0.00	%		1.25	%	1.80	%		9.86	%	10.47	%
2018		6		21.98		24.40		140		0.00	%		1.25	%	1.80	%		(29.57	)%	(29.18	)%
Vanguard VIF Balanced
2022		71		11.37		11.37		808		1.71	%		0.30	%	0.30	%		(14.56	)%	(14.56	)%
2021		63		13.31		13.31		832		1.03	%		0.30	%	0.30	%		18.15	%	18.15	%
2020		3		11.26		11.26		36		0.00	%		0.30	%	0.30	%		5.49	%	5.49	%
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
Vanguard VIF Capital Growth
2022		20		12.25		12.25		249		0.98	%		0.30	%	0.30	%		(15.74	)%	(15.74	)%
2021		15		14.53		14.53		219		0.81	%		0.30	%	0.30	%		20.63	%	20.63	%
2020		2		12.05		12.05		26		0.00	%		0.30	%	0.30	%		10.73	%	10.73	%
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-

192

	As of December 31									For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)			Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)								Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

Vanguard VIF Conservative Allocation
2022		123	$	9.74	$	9.74	$	1,198			1.00	%		0.30	%	0.30	%		(15.15	)%	(15.15	)%
2021		30		11.48		11.48		343			0.25	%		0.30	%	0.30	%		4.19	%	4.19	%
2020		-		-		-		-			-			-		-			-		-
2019		-		-		-		-			-			-		-			-		-
2018		-		-		-		-			-			-		-			-		-
Vanguard VIF Diversified Val
2022		5		14.34		14.34		67			0.23	%		0.30	%	0.30	%		(11.75	)%	(11.75	)%
2021		5		16.25		16.25		80			0.78	%		0.30	%	0.30	%		18.46	%	18.46	%
2020		-		-		-		-			-			-		-			-		-
2019		-		-		-		-			-			-		-			-		-
2018		-		-		-		-			-			-		-			-		-
Vanguard VIF Equity Income
2022		51		14.65		14.65		753			2.52	%		0.30	%	0.30	%		(0.96	)%	(0.96	)%
2021		44		14.80		14.80		645			0.06	%		0.30	%	0.30	%		20.01	%	20.01	%
2020		-		-		-		-			-			-		-			-		-
2019		-		-		-		-			-			-		-			-		-
2018		-		-		-		-			-			-		-			-		-
Vanguard VIF Equity Index
2022		110		12.43		12.43		1,362			0.98	%		0.30	%	0.30	%		(18.47	)%	(18.47	)%
2021		60		15.25		15.25		945			0.32	%		0.30	%	0.30	%		27.92	%	27.92	%
2020		1		11.92		11.92		(17	)		0.00	%		0.30	%	0.30	%		6.92	%	6.92	%
2019		-		-		-		-			-			-		-			-		-
2018		-		-		-		-			-			-		-			-		-
Vanguard VIF Global Bond Index
2022		25		8.55		8.55		215			1.98	%		0.30	%	0.30	%		(13.39	)%	(13.39	)%
2021		15		9.87		9.87		148			0.96	%		0.30	%	0.30	%		(2.23	)%	(2.23	)%
2020		1		10.10		10.10		12			0.00	%		0.30	%	0.30	%		0.66	%	0.66	%
2019		-		-		-		-			-			-		-			-		-
2018		-		-		-		-			-			-		-			-		-

193

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

Vanguard VIF Growth
2022		100	$	9.32	$	9.32	$	936		0.00	%		0.30	%	0.30	%		(33.56	)%	(33.56	)%
2021		55		14.03		14.03		742		0.01	%		0.30	%	0.30	%		16.57	%	16.57	%
2020		6		12.04		12.04		93		0.00	%		0.30	%	0.30	%		6.48	%	6.48	%
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
Vanguard VIF High Yield Bond
2022		17		10.03		10.03		173		4.68	%		0.30	%	0.30	%		(9.63	)%	(9.63	)%
2021		13		11.10		11.10		139		5.15	%		0.30	%	0.30	%		3.18	%	3.18	%
2020		2		10.75		10.75		24		0.00	%		0.30	%	0.30	%		3.60	%	3.60	%
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
Vanguard VIF International
2022		78		8.98		8.98		701		0.98	%		0.30	%	0.30	%		(30.33	)%	(30.33	)%
2021		42		12.89		12.89		547		0.06	%		0.30	%	0.30	%		(2.27	)%	(2.27	)%
2020		-		13.19		13.19		5		0.00	%		0.30	%	0.30	%		18.60	%	18.60	%
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
Vanguard VIF Mid-Cap Index
2022		67		12.51		12.51		834		1.03	%		0.30	%	0.30	%		(19.06	)%	(19.06	)%
2021		52		15.45		15.45		804		0.47	%		0.30	%	0.30	%		23.33	%	23.33	%
2020		-		12.53		12.53		6		0.00	%		0.30	%	0.30	%		14.57	%	14.57	%
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
Vanguard VIF Moderate Allocation
2022		64		10.37		10.37		660		2.21	%		0.30	%	0.30	%		(16.18	)%	(16.18	)%
2021		54		12.37		12.37		664		0.71	%		0.30	%	0.30	%		9.50	%	9.50	%
2020		3		11.29		11.29		36		0.00	%		0.30	%	0.30	%		7.06	%	7.06	%
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-

194

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

Vanguard VIF Money Market
2022		186	$	10.03	$	10.03	$	1,870		2.10	%		0.30	%	0.30	%		0.60	%	0.60	%
2021		33		9.97		9.97		325		0.01	%		0.30	%	0.30	%		(0.29	)%	(0.29	)%
2020		-		10.00		10.00		2		0.00	%		0.30	%	0.30	%		0.01	%	0.01	%
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
Vanguard VIF Real Estate Index
2022		29		11.36		11.36		331		1.72	%		0.30	%	0.30	%		(26.52	)%	(26.52	)%
2021		19		15.46		15.46		287		0.35	%		0.30	%	0.30	%		39.58	%	39.58	%
2020		-		11.07		11.07		3		0.00	%		0.30	%	0.30	%		6.13	%	6.13	%
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
Vanguard VIF Short Term Investment Grade
2022		167		9.47		9.47		1,579		1.44	%		0.30	%	0.30	%		(6.00	)%	(6.00	)%
2021		142		10.08		10.08		1,430		0.19	%		0.30	%	0.30	%		(0.82	)%	(0.82	)%
2020		1		10.16		10.16		11		0.00	%		0.30	%	0.30	%		0.81	%	0.81	%
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
Vanguard VIF Total Bond Market Index
2022		199		8.53		8.53		1,701		1.58	%		0.30	%	0.30	%		(13.47	)%	(13.47	)%
2021		115		9.85		9.85		1,136		1.16	%		0.30	%	0.30	%		(2.10	)%	(2.10	)%
2020		27		10.06		10.06		270		0.00	%		0.30	%	0.30	%		0.29	%	0.29	%
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
Vanguard VIF Total International Stock Market Index
2022		106		10.87		10.87		1,151		2.14	%		0.30	%	0.30	%		(16.26	)%	(16.26	)%
2021		42		12.98		12.98		546		0.57	%		0.30	%	0.30	%		8.16	%	8.16	%
2020		-		12.00		12.00		4		0.00	%		0.30	%	0.30	%		14.05	%	14.05	%
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-

195

	As of December 31								For the period ended December 31
Subaccount	Units (000's)		Unit Fair Value Corresponding to the Lowest and Highest Expense Ratios				Net Assets (000's)		Investment Income Ratio ^(a)			Expense Ratio ^(b)					Total Return ^(c) Corresponding to the Lowest and Highest Expense Ratios
				Low ^(d)		High ^(d)							Low ^(d)		High ^(d)			Low ^(d)		High ^(d)

Vanguard VIF Total Stock Mkt Index
2022		153	$	12.23	$	12.23	$	1,873		0.97	%		0.30	%	0.30	%		(19.83	)%	(19.83	)%
2021		77		15.26		15.26		1,179		0.74	%		0.30	%	0.30	%		24.83	%	24.83	%
2020		20		12.22		12.22		242		0.00	%		0.30	%	0.30	%		9.53	%	9.53	%
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-
Western Asset Core Plus VIT II
2022		421		8.26		8.22		3,471		2.43	%		1.00	%	1.30	%		(18.11	)%	(18.35	)%
2021		227		10.09		10.06		2,287		2.05	%		1.00	%	1.30	%		(0.29	)%	(0.54	)%
2020		-		-		-		-		-			-		-			-		-
2019		-		-		-		-		-			-		-			-		-
2018		-		-		-		-		-			-		-			-		-

* The Subaccount has units that round to less than 1,000 units.

^(a)These ratios represent the dividends received by the Subaccount, excluding distributions of both long-term and short-term capital gains, divided by the average net assets. These ratios exclude expenses, such as mortality and expense charges, that result in direct reductions in the unit values. The recognition of investment income by the Subaccount is affected by the timing of the declaration of dividends by the underlying mutual fund in which the Subaccounts invest.

^(b)These ratios represent the annualized Contract expenses of the Subaccounts of the Separate Account, consisting primarily of mortality and expense risk and administrative charges, for each period indicated. These ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to Contract owner accounts through the redemption of units and expenses of the underlying mutual fund are excluded.

^(c)These amounts represent the total return for the periods indicated, are not annualized, include changes in the value of the underlying mutual fund, and reflect deductions for all items included in the expense ratio. The total return does not include any expenses addressed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented.

^(d)Fee rate, unit value and total return minimum and maximum are the same where there is only one active contract level charge for the subaccount

196

7. SUBSEQUENT EVENTS

The Separate Account has evaluated the effects of events subsequent to December 31, 2022, and through the date at which the financial statements were available to be issued. All accounting and disclosure requirements related to subsequent events are included in our financial statements.

197

Protective Life Insurance Company

Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus as of December 31, 2022 and 2021

Statutory Statements of Operations, Changes in Capital and Surplus, and Cash Flow for Each of the Years in the Three-Year Period Ended December 31, 2022

Supplemental Schedules as of and for the years ended December 31, 2022, 2021, and 2020

Independent Auditors’ Report

The Board of Directors

Protective Life Insurance Company:

Opinions

We have audited the statutory financial statements of Protective Life Insurance Company (the Company), which comprise the statutory statements of admitted assets, liabilities, and capital and surplus as of December 31, 2022 and 2021, and the related statutory statements of operations, changes in capital and surplus, and cash flow for each of the years in the three-year period ended December 31, 2022, and the related notes to the statutory financial statements.

Unmodified Opinion on Statutory Basis of Accounting

In our opinion, the accompanying statutory financial statements present fairly, in all material respects, the admitted assets, liabilities, and capital and surplus of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flow for each of the years in the three-year period ended December 31, 2022 in accordance with accounting practices prescribed or permitted by the Department of Commerce and Insurance of the State of Tennessee described in Notes 1 and 2.

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles section of our report, the statutory financial statements do not present fairly, in accordance with U.S. generally accepted accounting principles, the financial position of the Company as of December 31, 2022 and 2021, or the results of its operations or its cash flows for each of the years in the three-year period ended December 31, 2022.

Basis for Opinions

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

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

As described in Notes 1 and 2 to the statutory financial statements, the statutory financial statements are prepared by the Company using accounting practices prescribed or permitted by the Department of Commerce and Insurance of the State of Tennessee, which is a basis of accounting other than U.S. generally accepted accounting principles. Accordingly, the statutory financial statements are not intended to be presented in accordance with U.S. generally accepted accounting principles. The effects on the December 31, 2022 statutory financial statements of the variances between the statutory accounting practices described in Note 2 and U.S. generally accepted accounting principles, although not reasonably determinable, are presumed to be material and pervasive. The effects on the December 31, 2021 and 2020 statutory financial statements of the variances between the statutory accounting practices and U.S. generally accepted accounting principles are described in Note 2.

Responsibilities of Management for the Statutory Financial Statements

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

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

Auditors’ Responsibilities for the Audit of the Statutory Financial Statements

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

In performing an audit in accordance with GAAS, we:

●

Exercise professional judgment and maintain professional skepticism throughout the audit.

●

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

●

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

●

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

●

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

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

Supplementary Information

Our audits were conducted for the purpose of forming an opinion on the statutory financial statements as a whole. The supplementary information included in the supplemental Schedule I Summary of Investments - Other Than Investments in Related Parties and Schedule IV Reinsurance is presented for purposes of additional analysis and is not a required part of the statutory financial statements but is supplementary information required by the Securities and Exchange Commission’s Regulation S-X. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the statutory financial statements. The information has been subjected to the auditing procedures applied in the audits of the statutory financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the statutory financial statements or to the statutory financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the information is fairly stated in all material respects in relation to the statutory financial statements as a whole.

/s/ KPMG LLP

Birmingham, Alabama

March 31, 2023

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ADMITTED ASSETS, LIABILITIES, AND CAPITAL AND SURPLUS

(Statutory Basis)

	December 31
	2022		2021

	($ in thousands, except share amounts)

Bonds (fair value: 2022 - $41,441,691; 2021 - $52,216,520)	$	47,180,219	$	47,120,591
Preferred stocks (fair value: 2022 - $465,457; 2021 - $716,544)		540,147		707,270
Common stocks-affiliated (cost: 2022 - $2,263,479; 2021 - $1,948,513)		1,796,429		1,445,092
Common stocks-unaffiliated (cost: 2022 - $173,730; 2021 - $145,265)		174,544		146,568
Mortgage loans on real estate		10,558,447		9,557,217
Real estate		117,968		120,602
Contract loans		830,400		847,471
Cash and cash equivalents		369,091		449,128
Short-term investments		—		2,626
Other invested assets		804,833		809,003
Receivable for securities		4,485		1,851
Securities lending reinvested collateral assets		162,119		179,083
Derivatives		366,106		1,248,717
Derivative collateral and receivables		60,639		192,298
Total cash and investments		62,965,427		62,827,517
Amounts recoverable from reinsurers		123,881		139,923
Deferred and uncollected premiums		1,096		(36,891	)
Investment income due and accrued		525,295		507,118
Receivables from parent, subsidiaries, and affiliates		13,307		9,505
Current federal and foreign income tax recoverable		12,628		16,579
Deferred tax asset		185,709		180,054
Other assets		754,347		791,067
Assets held in Separate Accounts		14,111,642		16,385,944
Total admitted assets	$	78,693,332	$	80,820,816

(Continued)

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF ADMITTED ASSETS, LIABILITIES, AND CAPITAL AND SURPLUS

(Statutory Basis)

	December 31
	2022			2021

	($ in thousands, except share amounts)

Aggregate reserves:
Life policies and contracts	$	39,751,133		$	40,891,066
Accident and health		345,393			336,499
Liability for deposit-type contracts		11,906,051			10,373,334
Policy and contract claims:
Life		464,809			533,075
Accident and health		20,249			22,832
Policyholders' dividends		20,688			28,903
Funds at interest and experience rated refunds		78,776			136,850
Interest maintenance reserve (IMR)		778,140			1,269,536
General expenses due or accrued		95,653			70,908
Transfers from Separate Accounts due or accrued, net		(50,739	)		(338,156	)
Remittances and items not allocated		64,976			56,115
Borrowed money and interest thereon		925,223			1,308,328
Asset valuation reserve (AVR)		362,132			468,260
Payable to parent, subsidiaries, and affiliates		39,475			40,465
Derivatives		267,352			960,050
Derivative collateral and payables		62,269			195,926
Payable for securities lending		162,119			179,083
Funds held under reinsurance treaties		3,481,734			2,131,334
Other liabilities		471,541			451,894
Liabilities held in Separate Accounts		14,111,642			16,385,944
Total liabilities		73,358,616			75,502,246
Capital and surplus:
Common stock, $1.00 par value; 5,000,000 shares authorized, issued and outstanding		5,000			5,000
Surplus notes		110,000			110,000
Gross paid-in and contributed surplus		3,240,393			3,140,393
Unassigned funds - surplus		1,979,323			2,063,177
Total capital and surplus		5,334,716			5,318,570
Total liabilities and capital and surplus	$	78,693,332		$	80,820,816

See Notes to the Financial Statements (Statutory Basis).

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS

(Statutory Basis)

	Years Ended December 31
		2022			2021			2020*

		($ in thousands)
Revenue:
Premiums and annuity considerations	$	3,438,207		$	5,098,113		$	3,842,843
Net investment income		2,475,360			2,385,384			2,285,955
Commissions and expense allowances on reinsurance ceded		408,185			462,914			437,894
Amortization of interest maintenance reserve		132,476			123,509			107,047
Net gain (loss) from operations from Separate Accounts		(112,311	)		20,010			10,088
Reserve adjustments on reinsurance ceded		(167,198	)		(157,219	)		(392,899	)
Other income		548,017			636,979			610,473
Total revenue		6,722,736			8,569,690			6,901,401
Benefits and expenses:
Death and annuity benefits		2,262,459			2,292,755			2,106,267
Accident and health benefits		56,856			59,175			68,224
Surrender benefits and other fund withdrawals		3,514,730			3,023,567			2,913,334
Other policy and contract benefits		419,381			217,876			236,954
Increase in aggregate reserves		(1,137,253	)		1,054,549			618,761
Commissions and commission expense allowances		469,937			499,239			379,326
General expenses		574,343			541,211			524,794
Insurance taxes, licenses, and fees		110,307			100,202			74,030
Transfers from Separate Accounts, net		(151,823	)		(27,834	)		(931,195	)
Change in assumed MODCO reserves		47			205			184
Other expenses		136,678			117,209			125,743
Total benefits and expenses		6,255,662			7,878,154			6,116,422
Net income (loss) from operations before dividends to policyholders and federal income taxes		467,074			691,536			784,979
Dividends to policyholders		18,929			29,487			29,586
Federal income tax expense		125,600			122,732			80,173
Net income (loss) from operations		322,545			539,317			675,220
Net realized capital gains (losses) (less $(96,944), $11,883, and $31,811 of capital gains tax (benefit) in 2022, 2021, and 2020, respectively, and excluding $(358,987), $44,123, and $308,075 transferred to the IMR in 2022, 2021 and 2020, respectively)		(16,718	)		(113,001	)		16,493
Net income (loss)	$	305,827		$	426,316		$	691,713

* All 2020 amounts were restated in 2021 for Merger on January 1, 2021. See Notes 1 and 4.

See Notes to the Financial Statements (Statutory Basis).

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS

(Statutory Basis)

	($ in thousands)*
Capital and surplus, December 31, 2019	$	5,089,318

Net income		691,713
Change in net unrealized capital gains and losses, less capital gains tax of $1,767		(173,876	)
Change in nonadmitted assets		32,798
Change in liability for reinsurance in unauthorized companies		1,667
Change in reserve on account of change in valuation basis		59,252
Change in asset valuation reserve		(76,159	)
Change in net deferred income tax		(55,834	)
Change in surplus as a result of reinsurance		(251,818	)
Funds withheld losses		(16,944	)
Change in acquired unauthorized liability		5
Paid in capital		120,000
Capital and surplus, December 31, 2020		5,420,122

Net income		426,316
Change in net unrealized capital gains and losses, less capital gains tax (benefit) of $(52,048)		(229,288	)
Change in nonadmitted assets		(103,155	)
Change in liability for reinsurance in unauthorized companies		(973	)
Change in asset valuation reserve		(87,845	)
Change in net deferred income tax		67,051
Change in surplus as a result of reinsurance		(219,242	)
Funds withheld gains		7,557
Prior period adjustments		38,380
Change in acquired unauthorized liability		(353	)
Capital and surplus, December 31, 2021		5,318,570

Net income		305,827
Change in net unrealized capital gains and losses, less capital gains tax (benefit) of $(44,544)		(167,215	)
Change in net unrealized foreign exchange capital gain		14,481
Change in nonadmitted assets		94,264
Change in liability for reinsurance in unauthorized companies		(1,364	)
Change in asset valuation reserve		106,128
Change in net deferred income tax		3,373
Change in surplus as a result of reinsurance		(82,828	)
Funds withheld gains		15,898
Prior period adjustments		(34,820	)
Paid in capital		100,000
Change in acquired unauthorized liability		1,402
Dividends to parent		(339,000	)
Capital and surplus, December 31, 2022	$	5,334,716

* All 2020 amounts were restated in 2021 for Merger on January 1, 2021. See Notes 1 and 4.

See Notes to the Financial Statements (Statutory Basis).

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CASH FLOW

(Statutory Basis)

	Years Ended December 31
	2022			2021			2020*

	($ in thousands)
Cash from operations
Premiums and annuity considerations	$	4,794,234		$	5,151,370		$	4,392,497
Net investment income		2,475,883			2,436,005			2,371,117
Miscellaneous income		641,967			1,124,123			618,603
Benefit and loss payments		(6,463,941	)		(5,597,022	)		(5,717,602	)
Net transfers from Separate Accounts		439,240			(49,817	)		912,505
Commissions, expenses paid and miscellaneous		(1,225,127	)		(1,223,184	)		(903,824	)
Dividends paid to policyholders		(27,143	)		(29,733	)		(30,024	)
Federal income taxes		(22,624	)		(234,752	)		(73,754	)
Net cash from operations		612,489			1,576,990			1,569,518
Cash from investments
Proceeds from investments sold, matured or repaid:
Bonds		3,277,837			5,635,863			4,867,361
Stocks		202,717			130,168			267,306
Mortgage loans		1,098,099			1,236,175			616,072
Other invested assets		19,597			9,498			2,729
Net losses on cash, cash equivalents, and short-term investments		(56	)		131			1,295
Securities lending collateral assets		—			—			6,810
Derivatives and other miscellaneous proceeds		26,496			20,729			302,341
Total investment proceeds		4,624,690			7,032,564			6,063,914
Cost of investments acquired:
Bonds		(3,337,186	)		(8,775,550	)		(6,816,210	)
Stocks		(414,015	)		(441,653	)		(286,927	)
Mortgage loans		(2,111,300	)		(1,935,519	)		(1,415,557	)
Real estate		(1,078	)		(940	)		(5,343	)
Other invested assets		(12,718	)		(95,241	)		(24,761	)
Derivatives and other miscellaneous applications		(329,123	)		(327,742	)		(157,759	)
Total investments acquired		(6,205,420	)		(11,576,645	)		(8,706,557	)
Net change in contract loans		14,988			24,607			32,217
Net cash from investments		(1,565,742	)		(4,519,474	)		(2,610,426	)
Cash from financing and miscellaneous sources
Cash provided (applied):
Capital and paid in surplus		100,000			—			120,000
Borrowed funds		(383,106	)		953,327			84,989
Net deposits on deposit-type contract funds		1,551,722			2,243,042			357,812
Dividends to parent		(339,000	)		—			—
Securities lending liability		(16,964	)		120,413			6,810
Other cash provided (applied), net		(42,062	)		(645,559	)		759,275
Net cash from financing and miscellaneous sources		870,590			2,671,223			1,328,886
Net change in cash, cash equivalents, and short-term investments		(82,663	)		(271,261	)		287,978
Cash, cash equivalents, and short-term investments, beginning of year		451,754			723,015			435,037
Cash, cash equivalents, and short-term investments, end of year	$	369,091		$	451,754		$	723,015

* All 2020 amounts were restated in 2021 for Merger on January 1, 2021. See Notes 1 and 4.

(Continued)

PROTECTIVE LIFE INSURANCE COMPANY

STATEMENTS OF CASH FLOW

(Statutory Basis)

	Years Ended December 31
	2022			2021			2020*

	($ in thousands)
Non-cash transactions
Protective Life Reinsurance Bermuda Ltd. reinsurance transaction initial impact (Operations)	$	1,357,675		$	—		$	—
Protective Life Reinsurance Bermuda Ltd. reinsurance transaction initial impact (Financing and miscellaneous sources)		(1,357,675	)		—			—
Non-cash exchange of securities (Investments)		428,799			523,872			721,853
Non-cash change in retained asset account (Operations)		(19,004	)		81,301			61,631
Non-cash change in reinsurance loss contingency reserve (Operations)		21,866			(5,569	)		61,234
Non-cash transfer of Bonds from West Coast Life Insurance Company in conjunction with reinsurance novation(includes investment income due and accrued of $8,548,107) (Investments)		—			—			733,519
Protective Life Reinsurance Bermuda Ltd. reinsurance transaction initial impact (Operations and Financing and miscellaneous sources)		—			—			460,489
Adjustment for deposit liability pursuant to reinsurance treaty modification (Operations and Financing and miscellaneous sources)		—			—			131,411
Reclassification of security from Bonds to Other invested assets (Investments)		—			—			81,472
Non-cash transfer of Other Invested Assets from West Coast Life Insurance Company in conjunction with reinsurance novation (includes investment income due and accrued of $93,118) (Investments)		—			—			9,035

* All 2020 amounts were restated in 2021 for Merger on January 1, 2021. See Notes 1 and 4.

See Notes to the Financial Statements (Statutory Basis).

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

1.        General

Basis of Presentation – The statutory basis financial statements of Protective Life Insurance Company (the “Company”) have been prepared in conformity with accounting practices prescribed or permitted by the Department of Commerce and Insurance of the State of Tennessee (the “Department”). The Company is a stock, legal reserve, life and accident and health insurer domiciled in the State of Tennessee.

All outstanding shares of the Company’s common stock are owned by Protective Life Corporation (“PLC”), an insurance holding company domiciled in the State of Delaware. PLC was a wholly owned subsidiary of Dai-ichi Life Holdings, Inc. (“Dai-ichi Life”), a kabushiki kaisha organized under the laws of Japan. Effective January 1, 2023, PLC became a wholly owned subsidiary of Dai-ichi Life International Holding, LLC, a godo kaisha organized under the laws of Japan and subsidiary of Dai-ichi Life (“Dai-ichi Life International”), upon the transfer of all of the outstanding shares of PLC’s common stock from Dai-ichi Life to Dai-ichi Life International. Dai-ichi Life remains the ultimate controlling parent corporation of PLC. Wholly owned insurance subsidiaries of the Company as of December 31, 2022, include Protective Life and Annuity Insurance Company (“PLAIC”), MONY Life Insurance Company (“MONY”), West Coast Life Insurance Company (“WCL”), and Protective Property & Casualty Insurance Company (“PP&C”) (formerly Lyndon Property Insurance Company (“LPIC”)) and Golden Gate Captive Insurance Company (“GGCIC”). The Company also owns two investment companies, Protective Finance Corporation (“PFC”) and Protective Finance Corporation II (“PFCII”), and three non-insurance and non-investment subsidiaries, Western Diversified Services, Inc. (“WDS”), Protective Asset Protection, Inc. (“PAPI”) (formerly Lyndon Insurance Group, Inc.) and USWC Holding Company (“USWC”) and one automotive finance and insurance provider A.U.L. Corp. (“AUL”).

As part of a statutory merger approved by the Department and the Vermont Department of Financial Regulation, the Company was merged with its affiliate, Shades Creek Captive Insurance Company (“Shades Creek”), effective January 1, 2021 (“the Merger”). After the Merger, the Company remained as the surviving legal entity, and Shades Creek ceased to exist effective January 1, 2021. Prior to the Merger, both the Company and Shades Creek were wholly owned subsidiaries of PLC. The Company did not pay or receive any consideration in connection with the Merger. As a result of the Merger, all issued and outstanding capital stock of Shades Creek was cancelled.

The Merger was accounted for using the statutory merger method pursuant to Statement of Statutory Accounting Principles (“SSAP”) No. 68, “Business Combinations and Goodwill” (“SSAP No. 68”). In accordance with SSAP No. 68, the Company’s Statements of Operations, Statements of Changes in Capital and Surplus, Statements of Cash Flow and other prior year amounts included herein have been restated to reflect the merged results of the Company and Shades Creek in accordance with the provisions of SSAP No. 68 and SSAP No. 3, “Accounting Changes and Corrections of Errors” (“SSAP No. 3”).

The Department recognizes only statutory practices prescribed or permitted by the State of Tennessee for determining and reporting the financial condition and results of operations of an insurance company, and for determining its solvency under Tennessee Insurance Law. The National Association of Insurance Commissioners’ (“NAIC”) Accounting Practices and Procedures Manual, effective January 1, 2001 (“NAIC SAP”), has been adopted as a component of prescribed or permitted practices by the State of Tennessee. The Company had no permitted practices as of December 31, 2022 or 2021, or for each of the years in the three-year period ended December 31, 2022. The State has adopted certain prescribed accounting practices that differ from those found in NAIC SAP. Specifically, Tennessee Insurance Law requires that goodwill arising from the purchase of a subsidiary, controlled or affiliated entity is charged directly to surplus in the year it originates. In NAIC SAP, goodwill in amounts not to exceed 10% of an insurer’s capital and surplus may be capitalized and all amounts of goodwill are amortized as a component of unrealized gains and losses on investments over periods not to exceed 10 years.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

The following reconciles the Company's net income (loss) and capital and surplus as of and for the years ended December 31, prepared in accordance with NAIC SAP as compared to that prepared in accordance with practices prescribed and permitted by the Department.

		December 31
	SSAP #	2022			2021			2020

		($ in thousands)
NET INCOME (LOSS)
State basis	XXX	$	305,827		$	426,316		$	691,713
State prescribed practices that are an increase/(decrease) from NAIC SAP:
None	XXX		—			—			—
State permitted practices that are an increase/(decrease) from NAIC SAP:
None	XXX		—			—			—
Net income (loss), NAIC SAP	XXX	$	305,827		$	426,316		$	691,713
SURPLUS
State basis	XXX	$	5,334,716		$	5,318,570
State prescribed practices that are an increase/(decrease) from NAIC SAP:
Goodwill asset nonadmitted	68		(28,557	)		(66,633	)
State permitted practices that are an increase/(decrease) from NAIC SAP:
None	XXX		—			—
Statutory surplus, NAIC SAP	XXX	$	5,363,273		$	5,385,203

The preparation of financial statements in conformity with NAIC SAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities, as well as reported amounts of revenues and expenses. Actual results could differ from those estimates.

The Company elected to use rounding in reporting amounts throughout the statutory financial statements and in the accompanying notes to the statutory financial statements (collectively, the “statements”) and therefore summation of amounts and consistency between related amounts within the statements may be impacted by immaterial amounts.

Nature of Operations – The Company markets individual life insurance, credit life and disability insurance, guaranteed investment contracts, guaranteed funding agreements, and fixed and variable annuities. Its products are distributed nationally through various channels, including independent agents, insurance brokers, stockbrokers, financial institutions, company sales representatives, and automobile dealerships. The Company also seeks to acquire insurance policies from other insurers.

The operating results of companies in the insurance industry have historically been subject to significant fluctuations due to competition, economic conditions, interest rates, investment performance, maintenance of insurance ratings, inflation, and other factors.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Summary of Significant Accounting Policies - The Company uses the following significant accounting policies:

Cash and Investments

Investments are stated at values determined by methodologies prescribed by the NAIC. Bonds not backed by other loans are stated at amortized cost using the interest method, except for bonds with a NAIC designation of 6 which are carried at the lower of amortized cost or fair value. For bonds carried at fair value, the difference between cost and fair value is reflected in “Change in net unrealized capital gains and losses” in unassigned funds.

Loan-backed bonds and structured securities stated at amortized cost utilize anticipated prepayments to determine the effective yield at purchase. The majority of prepayment assumptions for loan-backed bonds and structured securities are obtained from Bloomberg; other sources are broker-dealer surveys, trustee information, and internal estimates. These assumptions are consistent with current interest rates and the economic environment. Changes in the timing of estimated future cash flows from the original purchase assumptions are accounted for using the retrospective method.

Bonds and preferred stock fair values are obtained from a nationally recognized pricing service. The Company uses quotes obtained from brokers and internally developed pricing models to price those bonds that are not priced by this service.

Redeemable preferred stocks are stated at amortized cost or fair value, depending on the assigned credit ratings. Perpetual preferred stocks are stated at fair value, not to exceed any currently effective call price. For preferred stocks carried at fair value, the difference between cost and fair value is reflected in “Change in net unrealized capital gains and losses” in unassigned funds.

Common stocks, other than of subsidiary, controlled and affiliated entities are generally stated at a fair value obtained from a nationally recognized pricing service.

The Company’s 100% ownership interest in the outstanding common stock of its life insurance company, PLAIC, is stated at its audited statutory book value less the $2.0 million redemption value of PLAIC’s preferred stock, which is held by PLC.

The Company’s 100% ownership interest in the outstanding common stock of its life insurance company, WCL, is stated at statutory capital and surplus, consistent with SSAP No. 97, “Investments in Subsidiary, Controlled and Affiliated Entities” (“SSAP No. 97”).

The Company’s 100% ownership interest in the outstanding common stock of its life insurance company, MONY, is stated at statutory capital and surplus, also consistent with SSAP No. 97.

The Company’s 100% ownership interest in the outstanding common stock of its insurance company PP&C, is stated at statutory values, consistent with SSAP No. 97.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

The Company’s 100% ownership in the outstanding common stock of its wholly-owned Special Purpose Financial Insurer, GGCIC, is nonadmitted due to permitted practices received by GGCIC from its domiciliary state of Vermont. For GGCIC, Vermont allows the admission of the XOL Asset Value as an admitted asset. A similar permitted practice was not requested by the Company from the Department to include this XOL Asset Value in the Company’s carrying value of GGCIC.

The Company’s 100% ownership interests in the outstanding common stock of its investment companies, PFC and PFCII, are carried at zero since no GAAP audit is completed.

The Company’s 100% ownership interests in the outstanding common stock of its non-insurance companies, WDS, PAPI, and USWC are carried at zero since no GAAP audit is completed.

The Company’s 100% ownership interests in the outstanding common stock of its automotive finance and insurance provider AUL is carried at $307.1 million at December 31, 2022. See Notes 4 and 7 for details of the Company’s May 2, 2022 acquisition of AUL.

Mortgage loans on real estate are stated at the aggregate unpaid principal balance. Book value adjustments are made for other-than-temporary declines. Temporary declines in value are reflected in “Change in net unrealized capital gains and losses” in unassigned funds.

Properties held for the production of income and home office real estate are stated at depreciated cost less encumbrances. Properties held for sale are stated at the lower of depreciated cost or fair value. Depreciation is computed on the straight-line method for all real estate holdings. Accumulated depreciation totaled $61.5 million and $57.7 million as of December 31, 2022 and 2021, respectively. There were no encumbrances as of December 31, 2022 or 2021.

Contract loans are carried at the unpaid principal balance. The excess of unpaid contract loan balances over the cash surrender value, if any, is nonadmitted and reflected as an adjustment to unassigned funds. Interest is capitalized as additional loan amounts on the respective anniversary dates.

Cash includes all demand deposits reduced by the amount of outstanding checks. The Company has deposits with certain financial institutions which exceed federally insured limits; however, total deposits are maintained within the bank-specific deposit level guidelines established by the Company’s Investments Policy Committee (IPC). The Company reviews the credit worthiness of these financial institutions and believes there is minimal risk of material loss.

Short-term investments are stated at amortized cost, which the Company believes approximates fair value. Short-term investments include those investments whose maturities at the time of acquisition were one year or less. Money market mutual funds are classified as cash equivalents with measurement at fair value.

The Company’s investment in surplus notes with an NAIC Credit Rating Provider (“NAIC CRP”) designation of NAIC 1 or NAIC 2, are reported at amortized cost. Surplus notes held with no NAIC CRP designation, or with a designation of NAIC 3, 4, 5, or 6, are carried at the lesser of amortized cost or fair value. Investments in surplus notes are reported as “Other invested assets”.

The Company owns majority and minority interests in several joint ventures. The Company carries these interests in accordance with SSAP No. 48, “Joint Ventures, Partnerships, and Limited Liability Companies”. The Company carries the majority owned interests based on the underlying statutory equity or audited (“GAAP”), accounting principles generally accepted in the United States of America, equity of the investee, depending on the nature of the business of the investee. The Company carries the minority owned interests based on the underlying audited GAAP equity of the investee. None of these investments exceeded 10% of the Company’s admitted assets at either December 31, 2022 or 2021.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Receivables and payables for securities represent balances outstanding with brokers related to purchase and sale transactions. These balances are cleared as amounts are received or paid.

Investment income is recorded when earned.

Realized gains and losses on the sale or maturity of investments are determined on the basis of specific identification and are included in the Statements of Operations on the trade date, net of the amount transferred to the Interest Maintenance Reserve (“IMR”) and net of applicable federal income taxes. The Company analyzes various factors to determine if any specific other-than-temporary impairment (“OTTI”) exists. Once a determination has been made that a specific OTTI exists, a realized loss is incurred and the cost basis of the impaired asset, other than loan-backed and structured securities, is adjusted to its fair value. Impaired loan-backed and structured securities are adjusted to the sum of their discounted future expected cash flows.

Derivatives

Derivative instruments expose the Company to credit and market risk. The Company minimizes its credit risk by entering into transactions with highly rated counterparties. The Company manages its market risk by establishing and monitoring limits as to the types and degrees of risk that may be undertaken. The Company monitors its use of derivatives in connection with its overall asset/liability management programs and risk management strategies. In addition, all derivative programs are monitored by the Company’s risk management department.

The Company uses various derivative instruments to manage risks related to certain life insurance and annuity products. The derivative instruments the Company may use include interest rate swaps, interest rate swaptions, interest rate forwards, interest rate futures, equity futures, equity options, foreign currency options, foreign currency futures, variance swaps, total return swaps, volatility futures, volatility options, and credit derivatives. The Company can use these derivatives as economic hedges against risks inherent in the products. These risks have a direct impact on the cost of these products and are correlated with the equity markets, interest rates, foreign currency levels, and overall volatility.

All derivative instruments qualifying for hedge accounting are valued consistently with the hedged item and are included in the Statements of Admitted Assets, Liabilities, and Capital and Surplus. The changes in carrying value for these derivatives, which qualify for hedge accounting, are recorded consistently with the hedged item. All derivative instruments used in hedging transactions that do not meet the criteria of an effective hedge are reported at fair value and are included in the Statements of Admitted Assets, Liabilities, and Capital and Surplus. The changes in the fair value of these derivatives are recognized immediately in “Change in net unrealized capital gains and losses, less capital gains tax” in unassigned funds.

The Company has an accounting hedge that is described more fully in Note 11. The derivative instrument was entered into in connection with the issuance of a certain funding agreement and is accounted for in a manner that is consistent with the accounting for the hedged item. The funding agreement is reported in accordance with Actuarial Guideline 33. The derivative entered into in conjunction with the funding agreement has a remaining cost basis of $4.4 million and accumulated foreign currency translation adjustments of $14.5 million; therefore, the derivative is reported in the Statements of Admitted Assets, Liabilities, and Capital and Surplus at an $18.9 million carrying value, as of December 31, 2022.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

In connection with the issuance of a fixed rate funding agreement denominated in a foreign currency, the Company entered into a fixed-to-fixed foreign currency swap in order to hedge the foreign currency exchange risk associated with the funding agreement. The Company’s maximum length of exposure to the foreign exchange element of the Company’s funding agreement is until December 2028. The cash flows received on the swap are identical to the cash flows paid on the funding agreement. There were no changes to the swap or the funding agreement during the period. Therefore, the Company did not recognize any unrealized gains or losses related to the cash flow hedge during the period.

The Company also had an effective accounting hedge in the form of an interest rate swap to hedge the interest rate risk associated with the Company’s funding agreement. The Company’s maximum length of exposure to the interest rate element of the Company’s funding agreement was until July 2020, at which time the swap matured.

All of the Company’s other derivatives are not effective accounting hedges. Therefore, they are reported in the Statements of Admitted Assets, Liabilities, and Capital and Surplus at their respective fair values. Any posted collateral and any upfront fees received or paid are also reported at their face amount on the Statements of Admitted Assets, Liabilities, and Capital and Surplus. The change in these positions’ fair market values during the year is reported in “Change in net unrealized capital gains and losses, less capital gains tax” in unassigned funds.

Upon termination of a derivative that qualified for hedge accounting, the realized gain or loss shall adjust the basis of the hedged item and be recognized in income consistent with the hedged item.

Upon termination of a derivative that did not or no longer meets the criteria for hedge accounting, the realized gain or loss is recorded in “Net realized capital gains (losses)” in the Statements of Operations.

The Company had no derivatives contracts with financing premiums at December 31, 2022 and 2021.

Refer to Note 11 for further information regarding the Company’s derivative instruments.

Premium Revenue and Related Commissions

Annuity considerations are recognized as revenue when received. Premiums for flexible premium/universal life and single premium credit life policies are recognized as revenue when collected. Premiums for traditional life insurance products are recognized as revenue when due. Accident and health premiums are earned ratably over the terms of the related insurance contracts.

Considerations for deposit type contracts, which do not have any life contingencies, are recorded directly to the related liability.

Acquisition costs, such as commissions and other costs related to new or renewal business, are expensed as incurred.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

The amount of dividends to be paid to policyholders is determined annually by the Company’s Board of Directors. The aggregate amount of policyholders’ dividends is related to actual interest, mortality, morbidity and expense experience for the year, and judgment as to the appropriate level of statutory surplus to be retained by the Company.

Aggregate Reserves for Policies and Contracts

Policy reserves for future life insurance policy benefits are actuarially computed using methods and assumptions in accordance with certain state statutes and administrative regulations including both net level and modified reserve bases. The mortality tables and interest assumptions currently being used on the majority of policies in force are the 1941, 1958, 1980, and 2001 Commissioner’s Standard Ordinary tables with 2.0% to 8.0% interest. These liabilities are computed using statutory actuarial tables, which do not allow for modification based on the Company’s experience, investment yields, mortality or withdrawals. Aggregate reserves are shown net of the credit taken for reinsurance ceded. Effective in 2017 the Company began calculating reserves for certain newly-issued policies in accordance with NAIC Valuation Manual 20, “Requirements for Principle-Based Reserves for Life Products” (“VM-20”), and effective in 2020, reserves for all new issues are in accordance with VM-20.

The Company waives deduction of deferred fractional premiums upon death of the insureds and returns any portion of the final premium beyond the month of death. The Company has certain surrender values in excess of the legally computed reserves, which are included in “Aggregate reserves: Life policies and contracts” in the Statements of Admitted Assets, Liabilities, and Capital and Surplus.

The method used in the valuation of substandard policies is based on the normal tabular reserves plus a portion of the substandard extra premium. For policies with a Mean reserve method, the extra substandard reserve is one half of the annualized extra premium (less a deferred premium). For policies with a Mid-terminal reserve method, the extra substandard reserve is the unearned modal substandard extra premium. For certain acquired business, a substandard mortality table is used.

As of December 31, 2022 and 2021, the Company had $9.0 billion and $9.0 billion, respectively, of insurance in-force for which the gross premiums are less than the net premiums according to the standard valuation set by the State of Tennessee. Reserves to cover this insurance totaled $114.9 million and $116.6 million as of December 31, 2022 and 2021, respectively, and were reported in “Aggregate reserves: Life policies and contracts” in the Statements of Admitted Assets, Liabilities, and Capital and Surplus. Tabular interest, tabular less actual reserves released, and tabular cost are determined by formula.

For the determination of investment earnings on funds not involving life contingencies, for each valuation rate of interest, the tabular interest is calculated as one-hundredth of the product of such valuation rate of interest times the mean of the amounts of funds subject to such valuation rate of interest held at the beginning and the end of the year of valuation. The tabular interest on funds not involving life contingencies is generally the interest actually credited or paid on such funds.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

The detail for other net changes in reserves is as follows:

2022					ORDINARY								GROUP
ITEM	Total		Industrial Life		Life Insurance		Individual Annuities		Supplementary Contracts		Credit Life Group and Individual		Life Insurance		Annuities

	($ in thousands)
Excess interest on universal life products	$	104,170	$	—	$	102,812	$	—	$	—	$	—	$	1,358	$	—
Total	$	104,170	$	—	$	102,812	$	—	$	—	$	—	$	1,358	$	—

2021					ORDINARY								GROUP
ITEM	Total		Industrial Life		Life Insurance		Individual Annuities		Supplementary Contracts		Credit Life Group and Individual		Life Insurance		Annuities

	($ in thousands)
Excess interest on universal life products	$	100,099	$	—	$	98,661	$	—	$	—	$	—	$	1,438	$	—
Total	$	100,099	$	—	$	98,661	$	—	$	—	$	—	$	1,438	$	—


2020						ORDINARY									GROUP
ITEM	Total			Industrial Life		Life Insurance			Individual Annuities		Supplementary Contracts		Credit Life Group and Individual		Life Insurance			Annuities

	($ in thousands)
Excess interest on universal life products	$	96,530		$	—	$	96,530		$	—	$	—	$	—	$	—		$	—
Conversion from Modco to coinsurance		(218,452	)		—		(213,949	)		—		—		—		(4,503	)		—
Additional reserves ceded to GGCIC		(28,991	)		—		(28,976	)		—		—		—		(15	)		—
Total	$	(150,913	)	$	—	$	(146,395	)	$	—	$	—	$	—	$	(4,518	)	$	—

The Company’s variable annuity (“VA”) contracts contain guaranteed minimum death benefit (“GMDB”), guaranteed minimum income benefit (“GMIB”) and guaranteed living withdrawal benefit (“GLWB”). Some of the Company's variable universal life (“VUL”) contracts contain GMDB features.

The VA GMDB becomes payable upon death. The guaranteed amount varies by the particular contract and option elected, and may be based on amounts deposited, amounts deposited accumulated at guaranteed interest, maximum account value on prior anniversaries, or some combination. All guarantees are reduced for prior partial withdrawal activity. The charge for the GMDB can either be based on a percentage of account value, a percentage of the GMDB, or a percentage of net amount at risk (GMDB amount less account value).

The VA GMIB, which is only available in selected contracts, becomes payable only upon annuitization after a specific number of years have passed since the contract effective date. The guarantee is based on total amounts deposited less amounts previously withdrawn.

The VA GLWB is only available on more recent contracts and applies to amounts withdrawn. The charge is a percentage of the guaranteed benefit base, and the annual guaranteed withdrawal amount is equal to 3.0% to 10.0% depending on the contract owner's age.

Effective January 1, 2020, statutory reserves for variable annuities are calculated according to NAIC Valuation Manual 21, “Requirements for Principal-Based Reserves for Variable Annuities” (“VM-21”). This replaces the prior reserve calculations under Actuarial Guidelines 43 (“AG43”). There is not a standalone reserve for GMDB, GMIB, or GLWB. The base reserve incorporates the risk of all of these guarantees.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

The VUL GMDB provides lapse protection by holding the policy in force during periods when the account value is less than or equal to zero. The charges, duration of the guarantee, and catch-up provisions depend on the terms of the underlying contract or rider. Reserves for GMDB are calculated in accordance with Actuarial Guideline 37, “Variable Life Insurance Reserves for Guaranteed Minimum Death Benefits". Reserves for the VUL GMDB were $40.0 million and $35.7 million as of December 31, 2022 and 2021, respectively.

In addition, the VA business acquired through the 2006 acquisition of the Chase Life Insurance Group (“Chase”) contains some GMDB and GMIB riders. This entire block is 100% ceded to Commonwealth Annuity and Life Insurance Company, so there are zero net reserves recorded by the Company for the Chase VA block.

Liabilities for policy reserves on fixed annuity contracts are calculated based on the Commissioner’s Annuity Reserve Valuation Method (“CARVM”). The reserve calculation considers the interest credited rates and guarantee periods specific to each policy as well as the appropriate mortality table depending on the contract issue date.

The Company’s fixed indexed annuity products (“FIA”) and single premium deferred annuity (“SPDA”) contracts contain an optional GLWB. The annual guaranteed withdrawal amount is applied to the benefit base and equals 3.75%-7.75% for FIA and 4.5%-8.64% for SPDA depending on the contract owner's age. The benefit is a part of the CARVM calculation under Actuarial Guideline 35. The base reserve incorporates the risk of this guarantee.

The Company sells Structured Annuities which are a fixed indexed annuity with floored downside equity risk. Due to the potential for negative equity performance and the presence of a death benefit, the reserves are also calculated under VM-21.

Reserves for deposit type funds are equal to deposits received and interest credited to contract holders less surrenders and withdrawals that represent a return to the contract holder. Interest rates credited ranged from 0.23% to 5.5% for guaranteed investment contracts and funding agreements and 0.0% to 11.25% for immediate annuities during 2022. Interest rates credited ranged from 0.23% to 3.58% for guaranteed investment contracts and funding agreements and 0.0% to 11.25% for immediate annuities during 2021. Interest rates credited ranged from 0.36% to 3.58% for guaranteed investment contracts and funding agreements and 1.0% to 11.25% for immediate annuities during 2020.

Certain of the Company's policy reserves relate to universal life policies with secondary guarantees (“ULSG”) which guarantee that insurance coverage will remain in force (subject to the payment of specified premiums). These products do not allow the Company to adjust policyholder premiums after a policy is issued, and most of these products do not have significant account values upon which interest is credited. Policy reserves for these products are actuarially computed using methods and assumptions in accordance with Actuarial Guideline 38 (“AG38”) for policies issued between 2003-2019, and in accordance with VM-20 for policies issued in 2020 and later. Total reserves for ULSG policies were $7.0 billion and $6.6 billion as of December 31, 2022 and 2021, respectively.

Liabilities for accident and health policies include unearned premiums and additional reserves. The liability for future policy benefits and claims on life and health insurance products includes estimated unpaid claims that have been reported to the Company and claims incurred but not yet reported. Changes in estimates are reflected in operations during the period in which the change occurred.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Liabilities for losses and loss adjustment expenses for accident and health contracts are estimated by the Company’s valuation actuary using statistical claim development models to develop best estimates of liabilities for medical expense business and using tabular reserves employing mortality/morbidity tables and discount rates specified by regulatory authorities for disability income business.

The Company anticipates investment income as a factor in the premium deficiency calculation, in accordance with SSAP No. 54, "Individual and Group Accident and Health Contracts".

Policy and Contract Claims

Policy and contract claims include provisions for reported life, accident and health claims in process of settlement, valued in accordance with the terms of the related policies and contracts, as well as provisions for claims incurred but not reported based primarily on prior experience of the Company. As such amounts are necessarily estimates, the ultimate liability may differ from the amount recorded and will be reflected in the results of operations when additional information becomes known.

Asset Valuation Reserve (“AVR”) and Interest Maintenance Reserve (“IMR”)

The Company established certain reserves as required by NAIC SAP. The AVR is based upon a statutory formula as prescribed by the NAIC to provide a standardized reserve for realized and unrealized losses from default and/or equity risks associated with all invested assets, excluding cash, contract loans, premium notes, collateral loans, and investment receivables. Realized gains and losses related to fixed maturity investments resulting from changes in credit quality and capital gains and losses related to all other investments, net of applicable federal income taxes, are reflected in the calculation of AVR. Unrealized gains and losses, net of applicable deferred federal income taxes, are also reflected in the calculation. Changes in AVR are charged or credited directly to unassigned funds.

The IMR captures realized gains and losses, net of applicable federal income taxes, from the sale of certain investments. The portion of these realized gains and losses resulting from changes in the general level of interest rates is not recognized currently but is amortized into income over the approximate remaining life of the investment sold.

Federal Income Taxes

The provision for federal income taxes is computed in accordance with those sections of the Internal Revenue Code applicable to life insurance companies. Deferred income taxes are provided based upon the expected future impact of differences between the financial statement and tax basis of assets and liabilities. The admission of gross deferred income tax assets is subject to various limitations as specified by NAIC SAP. Changes in deferred tax assets and liabilities are recognized as a separate component of unassigned funds.

Reinsurance

In the normal course of business, the Company seeks to limit aggregate and single exposure to losses on large risks by purchasing reinsurance from other reinsurers. Amounts recoverable from reinsurers related to paid policy claims are included in “Amounts recoverable from reinsurers” and insurance liabilities are reported net of reinsurance recoverables in the Statements of Admitted Assets, Liabilities, and Capital and Surplus. Receivables and payables from the same reinsurer, including funds withheld, are generally offset. For reserve credits taken related to reinsurers considered to be unauthorized by the Department, the Company must obtain letters of credit, funds withheld, or other forms of collateral in amounts at least equal to reserve credits. To the extent such collateral is not obtained, the Company must record a liability for reinsurance in unauthorized companies.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Reinsurance premiums ceded and reinsurance recoveries on policy claims and benefit reserves are netted against the respective “Premiums and annuity considerations” and “Death and annuity benefits” in the Statements of Operations. Revenues from commissions and expense allowances on reinsurance ceded are recognized in the period in which the transaction occurs and recorded in “Commissions and expense allowances on reinsurance ceded” in the Statements of Operations. The change in modified coinsurance (“MODCO”) reserves ceded and related expenses are included in “Reserve adjustments on reinsurance ceded” in the Statements of Operations.

The Company remains liable with respect to ceded insurance should any reinsurer fail to meet the obligations it assumed. The Company evaluates the financial condition of its reinsurers and monitors the associated concentration of credit risk.

Separate Accounts

The Company issues variable annuities, variable life contracts, market value adjusted annuities (“MVAA”), and fixed rate universal life contracts that are all Bank Owned Life Insurance (“BOLI”) contracts. Absent any contract guarantees of either a minimum return or account value upon death or annuitization, variable annuity and life contract holders bear the investment risk that the Separate Accounts’ funds may not meet their stated investment objectives. The assets and liabilities related to Separate Accounts are recorded at fair value and reported separately as assets and liabilities held in Separate Accounts except for the BOLI contracts. The BOLI Separate Account assets and liabilities are stated at book value. Fees charged on Separate Account contract owner deposits are included in “Other income” in the Statements of Operations. In the event that the asset value of certain contract holder accounts is projected to be below the value guaranteed by the Company, a liability is established through a charge to operations.

2.        Statutory and Generally Accepted Accounting Principles Differences

Accounting practices prescribed or permitted by the Department vary in some respects from accounting principles generally accepted in the United States of America (“GAAP”). A summary of significant statutory accounting practices (“SAP”) and their difference to GAAP, is as follows:

The costs related to acquiring business, principally commissions and certain policy issue expenses, are charged to operations in the year incurred and thus are not amortized over the period benefited, whereas premiums are taken into revenue over the premium paying period of the related policies. Under GAAP, acquisition costs on successful efforts are capitalized and charged to operations as the revenues or expected gross profits are recognized;

Deposits to universal life contracts, investment contracts and limited payment contracts are credited to revenue. Under GAAP, these items are accounted for as deposits on the balance sheet and do not flow through the income statement;

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Under SAP rules that precede Principles Based Reserves (“PBR”), policy reserves for future policy benefits are actuarially computed in accordance with certain state statutes and administrative regulations including reserve bases appropriate for life, accident and health, and annuity products. These liabilities are computed using statutory actuarial tables which do not allow for modification based on the Company’s experience. Under PBR, company experience is utilized in setting certain assumptions for the scenario-based reserves for life and annuity products as defined under VM-20 and VM-21. Aggregate statutory reserves are shown net of the credit taken for reinsurance. Under GAAP, reserves for life-contingent annuity and traditional life insurance products are based on the present value of future benefits less the present value of future net premiums based on mortality, lapse, and other assumptions, which were appropriate at the time the policies were issued or acquired. Reserves for non-life-contingent annuity and universal life insurance products are recognized by establishing a liability equal to the current account value of the policyholders’ contracts, with an additional reserve for certain guaranteed benefits. Aggregate reserves are shown gross with an offsetting reinsurance recoverable;

Certain assets must be included in the statutory financial statements at “admitted asset value” and “nonadmitted assets” must be excluded through a charge against surplus. No such reduction of asset values is required under GAAP;

Bonds and redeemable preferred stocks are generally stated at amortized cost and perpetual preferred stocks are stated at fair value. For bonds and preferred stocks stated at fair value, the difference between cost and fair value is reflected in “Change in net unrealized capital gains and losses” in unassigned funds. Under GAAP, bonds and preferred stocks, other than those classified as held to maturity, are stated at fair value with changes recorded in accumulated other comprehensive income (loss) in the balance sheet if classified as available-for-sale securities or in the income statement if classified as trading securities;

Subsidiaries and affiliates are carried as investments at net statutory book value, their periodic net income or loss is recorded in “Change in net unrealized capital gains and losses” in unassigned funds, and dividends are recorded as investment income. GAAP requires subsidiaries and certain variable interest entities to be consolidated and results of operations are included in net income (loss);

Certain assets and liabilities are reported net of ceded reinsurance balances, which is not permitted by GAAP;

Realized capital gains and losses are reflected net of transfers to IMR and federal income tax in the Statements of Operations. Under GAAP realized capital gains and losses are reflected on a gross basis in the Income Statement as the IMR concept does not exist in GAAP;

Deferred federal income tax is provided based upon the expected future impact of differences between the financial statement and tax basis of assets and liabilities. The admission of gross deferred income taxes is subject to various limitations as specified by NAIC SAP. Under GAAP, gross deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the assets will not be realized. In addition, changes in deferred tax assets and liabilities are recognized as a separate component of unassigned funds, while under GAAP, these changes are included in income tax expense or benefit in the Income Statement;

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

10.

The AVR is reported as a liability rather than as a reduction in investments and is charged directly to surplus. No such reserve is required under GAAP;

11.

The IMR is reported as a liability and the amortization of the IMR is reported in the revenue section of the Statements of Operations. No such reserve is required under GAAP;

12.

The Statements of Cash Flow are presented in the required statutory format which differs in certain respects from the presentation required by GAAP, including the presentation of the changes in cash, cash equivalents and short-term investments instead of cash and cash equivalents. Short-term investments include securities with maturities of one year or less at the time of acquisition. SAP requires no reconciliation between net income and net cash provided by operating activities as required by GAAP;

13.

The change in the unrealized gains or losses on certain investments is recorded as an increase or decrease in statutory surplus under SAP. Under GAAP, such unrealized gains and losses are recorded as a component of comprehensive income (loss);

14.

Any premiums due that are not yet paid, and premiums paid on other than an annual basis, are included in premiums deferred and uncollected on the Statements of Admitted Assets, Liabilities, and Capital and Surplus. On a GAAP basis, deferred premiums are netted against policy reserves and are generally calculated as a component of gross premiums;

15.

For reserve credits taken related to reinsurers considered “unauthorized” by the Department, the Company must obtain letters of credit, funds withheld or other forms of collateral in amounts at least equal to the reserve credits. To the extent such collateral is not obtained, the Company must record a liability for reinsurance in unauthorized companies with a charge to unassigned funds. No such liability is recorded for GAAP;

16.

Market value adjusted annuities are included in the Company’s general account for GAAP purposes, but are included in Separate Accounts on a statutory basis;

17.

Contracts that contain an embedded derivative are not bifurcated between components and are accounted for as part of the host contract, whereas under GAAP, the embedded derivative would be bifurcated from the host contract and accounted for separately;

18.

Under SAP, surplus notes are reported as equity rather than as a liability for GAAP; and

19.

Acquisitions and reinsurance transactions can be subject to different accounting treatments due to differences in risk transfer and business combination assessments. Certain acquisitions of inforce business are accounted for as reinsurance pursuant to Statutory guidelines but are subject to Purchase GAAP accounting (“PGAAP”) guidelines for GAAP reporting purposes due to their qualification as a business combination.

Beginning in 2022, the Company no longer prepared GAAP financial statements. Accordingly, the differences between NAIC SAP and GAAP have not been quantified as of December 31, 2022 or for the year then ended; however, the differences are presumed to be material.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

The Company’s consolidated net income and equity reported in conformity with GAAP as of and for the years ended December 31 are as follows:

	Net Income				Equity
	2021		2020		2021
	($ in thousands)

GAAP-basis amounts	$	284,656	$	237,671	$	12,764,450

3.        Accounting Changes and Prior Period Adjustments

Accounting Changes

The NAIC Statutory Accounting Principles Working Group adopted revisions to SSAP No. 86 “Derivatives”. These revisions provide for more consistency between SAP and U.S. GAAP with respect to the assessment of effective hedge relationships and introduce additional guidance for the application of certain hedging methods. The revisions are effective January 1, 2023. The revised guidance will not impact the Company’s financial position or results of operations.

Effective January 1, 2021, the Company adopted revisions to SSAP No. 32, “Preferred Stock” (“SSAP No. 32R”), which refined definitions of preferred stock categories and updated accounting guidance for certain categories of preferred stock. Under the revised guidance in SSAP No. 32R, all perpetual preferred stocks shall be reported at fair value, not to exceed any currently effective call price. The Company recorded an unrealized gain of $21.4 million upon adoption of the revisions and an unrealized loss of $7.6 million for the year ended December 31, 2021.

Effective January 1, 2021, the Company adopted revisions to SSAP No.106, “Affordable Care Act Section 9010 Assessment” (“SSAP No. 106R”) which relate to the repeal by Congress of the Affordable Care Act Section 9010 Assessment, also known as the health insurer’s tax (HIT). The adoption of these revisions had no effect on the Company’s financial statements.

As of January 1, 2020, VM-21 replaced AG43 for the valuation of statutory reserves for variable annuities. The cumulative net impact of this regulation change was a $59.3 million decrease in reserves. The change was recorded directly in “Unassigned funds – surplus” as a “Change in reserve on account of change in valuation basis”. The financial statement impact of this change was to decrease “Aggregate reserves: life policies and contracts” and increase both “Change in reserve on account of change in valuation basis” and “Unassigned funds - surplus” by $59.3 million. In accordance with the provisions of SSAP No. 3, the $59.3 million cumulative effect represents the January 1, 2020 impact of the change.

Effective January 1, 2020, the Company adopted SSAP No. 108, “Derivative Hedging Variable Annuity Guarantees” (“SSAP No. 108”), which prescribes guidance for derivatives that hedge interest rate risk of variable annuity guarantees reserved under VM-21. The guidance in SSAP No. 108 is not currently applicable to the Company’s derivatives, and the adoption had no effect on the Company’s financial statements.

Effective January 1, 2020, the Company adopted revisions to SSAP No. 22. “Leases”, (“SSAP No. 22R”). SSAP No. 22R rejected GAAP guidance on operating leases, but incorporated, with modification, guidance on sale-leaseback transactions, lessor accounting and leveraged leases for all new leases, and for existing leases reassessed due to a change in terms and conditions. The adoption of these revisions had no effect on the Company’s financial statements.

PROTECTIVE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)

Effective June 30, 2020, the Company adopted revisions to SSAP No. 105, “Working Capital Finance Investments” (“SSAP No. 105R”), which provided substantive updates to the Working Capital Finance Investments Program requirements. The Company holds no working capital finance investments, and therefore this adoption had no effect on the Company’s financial statements.

Prior Period Adjustments

During the December 31, 2022 statutory filing, the Company corrected an error in its accounting for a hedging transaction associated with a foreign-denominated funding agreement. The Company’s “Derivatives” liability was understated by $8.4 million. The effect of this correction was a decrease to “Unassigned funds – surplus” of $8.4 million as of January 1, 2022 which was reported as “Prior period adjustments” in accordance with the provisions of SSAP No. 3.

During the June 30, 2022 statutory filing, the Company identified an error in the process to identify post-level claims which had caused claims to be incorrectly ceded to Golden Gate Captive Insurance Company related to the December 31, 2021 statutory annual statement. The Company’s “Amounts recoverable from reinsurers” were overstated by $8.5 million and “Life contract claims” were understated by $3.9 million. The net effect of these changes was a decrease to “Unassigned funds - surplus” of $12.4 million which was reported as “Prior period adjustments”. In accordance with the provisions of SSAP No. 3, this amount represents the January 1, 2022 impact of the correction.

During the June 30, 2022 statutory filing, the Company identified a coding error concerning guaranteed credited rates related to the December 31, 2021 statutory annual statement. The Company’s “Aggregate reserves for life contracts” were understated by $6.2 million and “Transfers to separate accounts due or accrued” were understated by $9.9 million. The adjustments related to this correction resulted an increase to “Current federal income tax recoverable” of $2.1 million, in addition to an increase in “Deferred tax asset” of $1.3 million, with an offsetting increase in “Deferred tax asset” non-admitted of $1.3 million. The net effect of these changes resulted in a decrease to “Unassigned funds - surplus” of $14.0 million which was reported as “Prior period adjustments”. In accordance with the provisions of SSAP No. 3, this amount represents the January 1, 2022 impact of the correction.

During the September 30, 2021 statutory filing, the Company identified an error in its experience rating refund calculation related to the December 31, 2020 statutory annual statement. The error was due to an incorrect purchase price adjustment made to an acquired block of group life and accident and health policies. The adjustments related to this correction included an increase to “Funds at interest and experience rated refunds” of $14.1 million, and an increase to “Current federal and foreign income tax recoverable” of $3.0 million. The net effect of these changes was a decrease to “Unassigned funds - surplus” of $11.2 million as of January 1, 2021 which was reported as a “Prior period adjustments” in accordance with the provisions of SSAP No. 3.

During the June 30, 2021 statutory filing, the Company identified an error in its policyholder reserve calculation related to the December 31, 2020 statutory annual statement. The error was due to the use of an incorrect rate in the policyholder reserve calculation for certain FIA and SPDA contracts. The adjustments related to this correction included a decrease to “Aggregate reserves: Life policies and contracts” of $18.6 million, a decrease in “Deferred tax asset” of $3.9 million, with an offsetting increase in “Deferred tax asset” non-admitted of $3.9 million. The net effect of these changes was an increase to “Unassigned funds - surplus” of $18.6 million as of January 1, 2021 which was reported as a “Prior period adjustments” in accordance with the provisions of SSAP No. 3.

PROTECTIVE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)

During the June 30, 2021 statutory filing, the Company identified an error in its calculation of accrued premium ceded related to the December 31, 2020 statutory annual statement. The error was related to the Company’s December 31, 2020 recognition of premium in the fourth quarter of 2020 in conjunction with the amended and restated indemnity reinsurance agreement (the “2020 PLICO-GGCIC Agreement”) with GGCIC which was effective on October 1, 2020. The Company’s premium and annuity considerations, uncollected premiums and commissions and expense allowances on reinsurance ceded were understated in the Company’s 2020 Statutory annual statement due to the inadvertent accrual of initial premium ceded on certain policies under the amended reinsurance agreement, which had been previously paid under reinsurance agreements that were in effect prior to the October 1, 2020 amendments. These understatements also resulted in related impacts to reinsurance receivables, deferred tax asset, current federal income taxes payable, federal income taxes, and change in net deferred income tax as reported in the December 31, 2020 statutory annual statement. The adjustments related to this correction included an increase to “Deferred and uncollected premiums” of $23.3 million, a decrease to “Other assets” of $2.7 million, a decrease to “Deferred tax asset” of $4.9 million, an increase to “Current federal and foreign income taxes” of $0.4 million, a decrease to “Common stocks-affiliated” of $24.7 million and a decrease to “Common stocks” non-admitted of $40.3 million. The net effect of these changes was an increase to “Unassigned funds - surplus” of $30.9 million as of January 1, 2021 which was reported as a “Prior period adjustments” in accordance with the provisions of SSAP No. 3.

Business Combinations and Goodwill

Statutory Purchase Method

On May 2, 2022, the Company completed the transaction to acquire leading automotive finance and insurance provider AUL. AUL offers a variety of finance and insurance products, including warranties, vehicle service contracts, and a suite of ancillary products. The transaction was announced on March 21, 2022. The Company accounted for this transaction under the statutory purchase method of accounting as required by SSAP No. 68. The aggregate purchase price was $347.0 million and is subject to adjustments. AUL is carried at $307.1 million at December 31, 2022. No goodwill was recorded in the transaction. Please refer to Note 7 – Information Concerning Parent and Subsidiaries for further information regarding the Company’s acquisition of AUL.

Goodwill

On October 1, 2013, the Company completed the acquisition contemplated by the master agreement (the “Master Agreement”) dated April 11, 2013, with AXA Financial, Inc. (“AXA”) and AXA Equitable Financial Services, LLC (“AEFS”), pursuant to which the Company acquired the stock of MONY from AEFS. The Company accounted for this transaction under the statutory purchase method of accounting as required by SSAP No. 68. The aggregate purchase price for MONY was $688.6 million. As a result of this transaction, the Company recorded $380.8 million of goodwill. Goodwill amortization for the years ended December 31, 2022, 2021, and 2020, was $38.1 million and was recorded in “Change in net unrealized gains and losses, less capital gains tax”, and total accumulated goodwill amortization was $352.2 million and $314.2 million as of December 31, 2022 and 2021, respectively. At December 31, 2022 and 2021, the Company had $28.6 million and $66.6 million, respectively, of goodwill remaining. Under Tennessee statute, goodwill is inadmissible and accordingly has been non-admitted. Refer to Note 1 for further discussion of this prescribed practice under Tennessee statutes.

PROTECTIVE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)

A summary of the transaction described above, which was accounted for as a statutory purchase, is as follows for the years ended December 31, 2022, 2021, and 2020:

	($ in thousands)
Purchased Entity	Acquisition Date	Cost of Acquired Entity		Original Amount Goodwill		Original Amount of Admitted Goodwill		Admitted Goodwill as of the Reporting Date		Amount of Goodwill Amortized During the Reporting Period		Book Value of SCA		Admitted Goodwill as a % of SCA BACV, Gross of Admitted Goodwill
MONY Life Insurance Company	10/1/2013	$	688,560	$	380,758	$	—	$	—	$	38,076	$	350,843		0%

Statutory Merger

As discussed in Note 1, Shades Creek merged with and into the Company on January 1, 2021, with the Company being the surviving entity. Shades Creek was a captive insurance company domiciled in Vermont. The transaction was accounted for as a statutory merger in accordance with SSAP No. 68. There was no goodwill recorded as a result of the merger of Shades Creek with and into the Company. No shares of stock were issued in the transaction. As the Merger was effective January 1, 2021, there are no prior period separate entity revenue, net income, or other surplus adjustments included in current period results. Both parties to the Merger previously filed statutory financial statements, so no adjustments were recorded to surplus.

Investments

Net Investment Income

Net investment income consists of the following:

	For The Years Ended December 31,
	2022		2021			2020

	($ in thousands)

Bonds	$	1,972,029	$	1,876,482		$	1,811,919
Common stocks (unaffiliated)		6,126		1,864			1,640
Common stocks (affiliated)		68,000		62,000			83,000
Preferred stocks		32,308		26,559			16,004
Mortgage loans		480,651		467,193			408,940
Income from real estate investments		18,545		15,536			15,341
Cash, cash equivalents, and short-term investments		5,771		(130	)		2,785
Contract loans		43,029		44,317			47,953
Derivatives		33,219		49,782			35,628
Securities lending		798		333			613
Other invested assets		35,282		33,164			31,107
Total investment income		2,695,758		2,577,100			2,454,930
Investment expenses		220,398		191,716			168,975
Net investment income	$	2,475,360	$	2,385,384		$	2,285,955

PROTECTIVE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)

Due and accrued income is excluded from investment income on the following basis:

Mortgage loans -	Income is excluded on loans delinquent more than 90 days. For loans less than 90 days delinquent, interest is accrued unless it is determined that the accrued interest is not collectible.

Bonds -	When the Company determines collection of interest to be uncertain or interest is 90 days past due, the accrual of interest is discontinued.

The total amount excluded from investment income due and accrued as of December 31, 2022 and 2021 was $0 and $0, respectively.

Realized Gains and Losses

Realized investment gains (losses) are summarized as follows:

	For The Years Ended December 31,
	2022			2021			2020

	($ in thousands)

Bonds	$	15,159		$	42,442		$	109,441
Preferred stocks		851			2,432			2,217
Common stocks (unaffiliated)		3,907			2,058			19
Cash, cash equivalents, and short-term investments		(56	)		131			1,295
Mortgage loans		(10,387	)		(3,465	)		(3,053	)
Derivative instruments		(474,057	)		(101,419	)		294,828
Other investments		1,977			1,044			3,880
Other-than-temporary impairments		(10,043	)		(218	)		(52,248	)
Less:
Amount transferred to interest maintenance reserve		(358,987	)		44,123			308,075
Federal income tax expense		(96,944	)		11,883			31,811
Net realized investment gains (losses)	$	(16,718	)	$	(113,001	)	$	16,493

Proceeds from the sales of investments in bonds and stocks during 2022, 2021, and 2020 were $1.4 billion, $1.8 billion and $2.4 billion, respectively. The Company realized gross gains of $31.5 million, $55.1 million, and $122.5 million on those sales for the years ended 2022, 2021, and 2020, respectively. Gross losses of $11.6 million, $8.1 million, and $9.6 million were realized on those sales for the years ended December 31, 2022, 2021, and 2020, respectively.

PROTECTIVE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)

Unrealized Gains and Losses

The change in net unrealized capital gains and losses included in unassigned funds is as follows:

	For The Years Ended December 31,
	2022			2021			2020

	($ in thousands)
Bonds	$	280		$	35		$	(109	)
Preferred stocks		(124,747	)		13,803			—
Common stocks (affiliated)		14,838			(33,489	)		(18	)
Common stocks (unaffiliated)		(490	)		1,358			(180,523	)
Mortgage loans		809			(4,327	)		(8,844	)
Derivative instruments		(108,999	)		(259,376	)		17,844
Other		6,550			660			(459	)
Less:
Federal income tax expense (benefit)		(44,544	)		(52,048	)		1,767
Total change in net unrealized capital gains and losses	$	(167,215	)	$	(229,288	)	$	(173,876	)

As of December 31, 2022, gross unrealized gains pertaining to common stocks were $241.1 million and gross unrealized losses were $639.6 million. As of December 31, 2021, gross unrealized gains pertaining to common stocks were $165.6 million and gross unrealized losses were $578.4 million. $639.6 million and $578.4 million of unrealized losses for 2022 and 2021, respectively, and $240.3 million and $164.3 million of unrealized gains for 2022 and 2021, respectively, relate to the Company's investments in subsidiaries which are recorded at statutory book value or GAAP equity in accordance with NAIC SAP.

During 2022, the Company recorded $109.0 million in unrealized losses on derivative instruments due to changes in fair value. The losses included $31.1 million of losses related to interest rate forwards, $29.4 million of losses related to interest rate swaps, and $5.2 million of losses related to equity futures, offset by $28.4 million of gains related to total return swaps, $1.2 million of gains related to foreign currency futures, $0.6 million of gains related to interest rate futures, and $46.2 million of gains related to equity options, which were used to mitigate risks associated with the Company’s variable annuity products. In addition, there were losses of $83.7 million related to equity options and $0.8 million of losses related to equity futures, which were used to mitigate risks associated with the Company’s fixed indexed annuity products. There were losses of $17.2 million related to equity options, which were used to mitigate risks associated with the Company’s indexed universal life products. There were losses of $3.2 million related to equity options and losses of $6.4 million related to equity futures, offset by $6.1 million of gains related to total return swaps, which were used to mitigate risks associated with the Company’s structured annuity products. Also, there were losses of $14.5 million related to a derivative qualifying for hedge accounting. The derivative instrument was entered into in connection with the issuance of a funding agreement reported in accordance with Actuarial Guideline 33; the derivative has a remaining cost basis of $4.4 million, and the $14.5 million of losses is the accumulated foreign currency translation adjustment.

PROTECTIVE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)

During 2021, the Company recorded $259.4 million in unrealized losses on derivative instruments due to changes in fair value. The losses included $183.1 million of losses related to interest rate swaps, $18.2 million of losses related to total return swaps, $53.2 million of losses related to equity options, and $0.7 million of losses related to interest rate futures, offset by $1.8 million of gains related to foreign currency futures, and $5.4 million of gains related to equity futures, which were used to mitigate risks associated with the Company’s variable annuity products. In addition, there were losses of $11.6 million related to equity options, and $0.1 million of losses related to equity futures, which were used to mitigate risks associated with the Company’s fixed indexed annuity products. There were losses of $0.1 million related to equity options, which were used to mitigate risks associated with the Company’s indexed universal life products. Also, there were losses of $0.2 million related to total return swaps, offset by $0.6 million of gains related to equity futures, which were used to mitigate risks associated with the Company’s structured annuity products.

During 2020, the Company recorded $17.8 million in unrealized gains on derivative instruments due to changes in fair value. The gains included $3.6 million of gains related to interest rate futures and $41.8 million of gains related to equity options, offset by $44.6 million of losses related to interest rate swaps, $9.2 million of losses related to total return swaps, and $1.9 million of losses related to foreign currency futures, which were used to mitigate risks associated with the Company’s variable annuity products. In addition, there were gains of $24.8 million related to equity options, which were used to mitigate risks associated with the Company’s fixed indexed annuity products. There were gains of $2.5 million related to equity options, which were used to mitigate risks associated with the Company’s indexed universal life products. Also, there were gains of $2.0 million related to equity options, offset by $1.2 million of losses related to total return swaps, which were used to mitigate risks associated with the Company’s structured annuity products.

Bonds and Preferred Stocks

Statement values in the following tables for December 31, 2021 do not reflect the nonadmission of $38.1 million of bonds at December 31, 2021, related to assets pledged as collateral to Federal Home Loan Bank.

The statement value and estimated fair value of the Company's bond and preferred stock investments as of December 31 are as follows:

	Statement Value		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value

2022	($ in thousands)
Bonds:
US Government	$	376,951	$	261	$	(52,723	)	$	324,489
Non-US Government		105,886		580		(10,577	)		95,889
US states, territories, and possessions		379,985		2,654		(22,092	)		360,547
US political subdivision		170,045		737		(14,726	)		156,056
US special revenue & special assessment		2,554,735		37,872		(327,429	)		2,265,178
Industrial and miscellaneous		34,373,809		197,714		(4,144,458	)		30,427,065
Hybrids		450,086		12,091		(24,600	)		437,577
Total bonds, excluding loan-backed and structured securities		38,411,497		251,909		(4,596,605	)		34,066,801
Loan-backed and structured securities:
Residential mortgage-backed securities		5,379,517		4,933		(1,163,593	)		4,220,857
Commercial mortgage-backed securities		1,501,642		299		(150,444	)		1,351,497
Asset-backed securities		1,887,563		5,483		(90,510	)		1,802,536
Total loan-backed and structured securities		8,768,722		10,715		(1,404,547	)		7,374,890
Total bonds		47,180,219		262,624		(6,001,152	)		41,441,691
Preferred stocks		540,147		486		(75,176	)		465,457
Total bonds and preferred stocks	$	47,720,366	$	263,110	$	(6,076,328	)	$	41,907,148

PROTECTIVE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)

	Statement Value		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value

2021	($ in thousands)
Bonds:
US Government	$	341,353	$	8,804	$	(11,241	)	$	338,916
Non-US Government		278,005		42,350		(986	)		319,369
US states, territories, and possessions		399,664		56,881		—			456,545
US political subdivision		170,253		14,076		(96	)		184,233
US special revenue & special assessment		2,663,423		405,274		(13,259	)		3,055,438
Industrial and miscellaneous		34,098,019		4,516,821		(96,492	)		38,518,348
Hybrids		471,425		96,814		(1,122	)		567,117
Total bonds, excluding loan-backed and structured securities		38,422,142		5,141,020		(123,196	)		43,439,966
Loan-backed and structured securities:
Residential mortgage-backed securities		5,424,612		34,747		(81,287	)		5,378,072
Commercial mortgage-backed securities		1,823,653		67,540		(2,939	)		1,888,254
Asset-backed securities		1,488,288		30,367		(8,427	)		1,510,228
Total loan-backed and structured securities		8,736,553		132,654		(92,653	)		8,776,554
Total bonds		47,158,695		5,273,674		(215,849	)		52,216,520
Preferred stocks		707,270		9,518		(244	)		716,544
Total bonds and preferred stocks	$	47,865,965	$	5,283,192	$	(216,093	)	$	52,933,064

The statement value and estimated fair value of bonds as of December 31, 2022, by expected maturity, is shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay certain of these obligations.

	Statement Value		Estimated Fair Value

	($ in thousands)
Bonds, excluding loan-backed and structured securities:
Due in 1 year or less	$	869,336	$	863,600
Due after 1 year through 5 years		6,459,151		6,146,139
Due after 5 years through 10 years		8,681,409		7,700,136
Due after 10 years		22,401,601		19,356,926
Total bonds, excluding loan-backed and structured securities		38,411,497		34,066,801
Total loan-backed and structured securities		8,768,722		7,374,890
Total bonds	$	47,180,219	$	41,441,691

The statement value and estimated fair value of bonds as of December 31, 2021, by expected maturity, is shown below.

	Statement Value		Estimated Fair Value

	($ in thousands)
Bonds, excluding loan-backed and structured securities:
Due in 1 year or less	$	825,050	$	839,202
Due after 1 year through 5 years		5,943,139		6,268,322
Due after 5 years through 10 years		8,878,500		9,501,592
Due after 10 years		22,775,453		26,830,850
Total bonds, excluding loan-backed and structured securities		38,422,142		43,439,966
Total loan-backed and structured securities		8,736,553		8,776,554
Total bonds	$	47,158,695	$	52,216,520

PROTECTIVE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)

The Company’s investment gross unrealized losses and estimated fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position as of December 31 are as follows:

	Less Than 12 Months					12 Months or More					Total
	Estimated Fair Value		Gross Unrealized Loss			Estimated Fair Value		Gross Unrealized Loss			Estimated Fair Value		Gross Unrealized Loss

2022	($ in thousands)
Bonds:
US Government	$	180,025	$	(7,350	)	$	133,234	$	(45,373	)	$	313,259	$	(52,723	)
Non-US Government		89,941		(10,577	)		—		—			89,941		(10,577	)
US states, territories, and possessions		296,391		(22,092	)		—		—			296,391		(22,092	)
US political subdivision		119,338		(13,852	)		1,534		(874	)		120,872		(14,726	)
US special revenue & special assessment		1,617,794		(226,299	)		200,850		(101,130	)		1,818,644		(327,429	)
Industrial and miscellaneous		24,828,578		(3,431,952	)		2,224,413		(712,506	)		27,052,991		(4,144,458	)
Hybrids		273,922		(22,529	)		4,357		(2,071	)		278,279		(24,600	)
Total bonds, excluding loan-backed and structured securities		27,405,989		(3,734,651	)		2,564,388		(861,954	)		29,970,377		(4,596,605	)
Loan-backed and structured securities:
Residential mortgage-backed securities		2,207,095		(507,504	)		1,949,584		(656,089	)		4,156,679		(1,163,593	)
Commercial mortgage-backed securities		1,258,869		(136,353	)		86,634		(14,091	)		1,345,503		(150,444	)
Asset-backed securities		1,221,071		(69,198	)		456,757		(21,312	)		1,677,828		(90,510	)
Total loan-backed and structured securities		4,687,035		(713,055	)		2,492,975		(691,492	)		7,180,010		(1,404,547	)
Total bonds		32,093,024		(4,447,706	)		5,057,363		(1,553,446	)		37,150,387		(6,001,152	)
Preferred stocks		148,734		(66,930	)		12,025		(8,246	)		160,759		(75,176	)
Total bonds and preferred stocks	$	32,241,758	$	(4,514,636	)	$	5,069,388	$	(1,561,692	)	$	37,311,146	$	(6,076,328	)

	Less Than 12 Months					12 Months or More					Total
	Estimated Fair Value		Gross Unrealized Loss			Estimated Fair Value		Gross Unrealized Loss			Estimated Fair Value		Gross Unrealized Loss

2021	($ in thousands)
Bonds:
US Government	$	89,600	$	(4,058	)	$	87,976	$	(7,183	)	$	177,576	$	(11,241	)
Non-US Government		18,932		(986	)		—		—			18,932		(986	)
US political subdivision		4,525		(96	)		—		—			4,525		(96	)
US special revenue & special assessment		232,240		(9,094	)		72,952		(4,165	)		305,192		(13,259	)
Industrial and miscellaneous		3,211,358		(73,254	)		334,775		(23,238	)		3,546,133		(96,492	)
Hybrids		16,948		(833	)		1,977		(289	)		18,925		(1,122	)
Total bonds, excluding loan-backed and structured securities		3,573,603		(88,321	)		497,680		(34,875	)		4,071,283		(123,196	)
Loan-backed and structured securities:
Residential mortgage-backed securities		3,682,775		(80,529	)		17,666		(758	)		3,700,441		(81,287	)
Commercial mortgage-backed securities		88,810		(1,167	)		47,534		(1,772	)		136,344		(2,939	)
Asset-backed securities		266,450		(1,103	)		354,111		(7,324	)		620,561		(8,427	)
Total loan-backed and structured securities		4,038,035		(82,799	)		419,311		(9,854	)		4,457,346		(92,653	)
Total bonds		7,611,638		(171,120	)		916,991		(44,729	)		8,528,629		(215,849	)
Preferred stocks		19,772		(228	)		254		(16	)		20,026		(244	)
Total bonds and preferred stocks	$	7,631,410	$	(171,348	)	$	917,245	$	(44,745	)	$	8,548,655	$	(216,093	)

For securities other than loan-backed securities, the Company generally considers a number of factors in determining whether an impairment is other-than-temporary (see the “Loan-backed and Structured Securities” section for information on loan-backed and structured security OTTIs). These include, but are not limited to: 1) actions taken by rating agencies, 2) default by the issuer, 3) the significance of the decline, 4) an assessment of the Company’s intent to sell the security (including a more likely than not assessment of whether the Company will be required to sell the security) before recovering the security's amortized cost, 5) the duration of the decline, 6) an economic analysis of the issuer's industry, and 7) the financial strength, liquidity, and recoverability of the issuer. Management performs a security-by-security review each quarter in evaluating the need for any OTTIs. Although no set formula is used in this process, the investment performance, collateral position and continued viability of the issuer are significant measures considered. For securities in an unrealized loss position for which an OTTI was not recognized, the Company believes that it is probable that all amounts will be collected as due according to the contractual terms of the debt security in effect at the date of acquisition and has the intent and ability to hold these securities until recovery. The Company recognized $8.6 million, $0, and $44.0 million of OTTIs on non-loan-backed securities during 2022, 2021, and 2020, respectively.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

The Company had securities with a fair value of $5.1 billion in an unrealized loss position for greater than twelve months as of December 31, 2022, and the related unrealized loss of $1.6 billion pertains primarily to residential mortgage-backed, banking, insurance, and communications securities. The Company had securities with a fair value of $917.0 million in an unrealized loss position for greater than twelve months as of December 31, 2021, and the related unrealized loss of $44.7 million pertains primarily to energy, student loan, collateralized loan obligations, electric, and other financial securities. The aggregate decline in fair value of these securities was deemed temporary due to positive factors supporting the recoverability of the respective investments. Positive factors such as credit ratings, the financial health of the investee, the continued access of the investee to capital markets, the average life of the securities, and the performance of the underlying collateral support the recoverability of these investments.

As of December 31, 2022 and 2021, bonds and cash having a fair value of $14.4 million and $16.0 million, respectively, were on deposit with various governmental authorities as required by law.

There were no individual bonds that exceeded 10% of capital and surplus as of December 31, 2022 and 2021.

Loan-Backed and Structured Securities

For the impairment review of loan-backed and structured securities, the Company employed the retrospective method during the period, and based its prepayment assumptions regarding expected maturity dates on market interest rates and overall economic conditions. The information used for these assumptions was provided by a nationally recognized, real-time database.

For each of the years in the three-year period ended December 31, 2022, the Company recorded no OTTIs due to intent to sell these securities. Also, no such impairments were recorded due to an inability or lack of intent to retain those securities in a gross unrealized loss position for a period of time sufficient to recover their amortized cost.

During 2022, 2021 and 2020, the Company recognized $1.4 million, $0.2 million and $8.0 million, respectively, of OTTIs on loan-backed securities.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

All impaired securities (fair value is less than cost or amortized cost) for which an OTTI has not been recognized in the Statements of Operations as a realized loss (including securities with a recognized OTTI for non-interest related declines when a non-recognized interest related impairment remains) are as follows as of December 31:

	2022		2021

	($ in thousands)
The aggregate amount of unrealized losses:
Less than 12 months	$	713,050	$	82,799
12 months or longer	$	691,486	$	10,053

The aggregate related fair value of securities with unrealized losses:
Less than 12 months	$	4,686,974	$	4,038,035
12 months or longer	$	2,492,935	$	419,377

In determining whether a loan-backed security had experienced an OTTI, the Company considers the delinquency (and foreclosure status, if applicable) of the underlying loans or mortgages, the expected recovery value of the underlying collateral in relation to the current amount of the investment, and the degree to which such losses, based upon the foregoing factors, will first be absorbed by tranches that are subordinate to the Company’s securities.

The Company's exposure to subprime mortgage related risk is limited to investments in residential mortgage-backed securities that are backed by loans to borrowers with lower credit ratings. These securities are classified as subprime at issuance. The Company has exposure to Alt-A bonds which were made to borrowers with less than conventional documentation of their income and/or net assets. The Company has exposure to unrealized losses on these holdings from changes in fair values due to widening spreads in a difficult and illiquid market environment. In addition, the Company has exposure to realized losses if it is determined that the securities are other-than-temporarily impaired. These risks are mitigated somewhat by the Company's ability and intent to hold these securities to recovery, which may be at maturity. These securities are reviewed monthly to ensure they are performing as expected and to ensure sufficient credit support.

The Company has no direct exposure through investments in subprime mortgage loans. The Company has no underwriting exposure to subprime mortgage risk.

The following information relates to the Company’s other investments with subprime exposure at December 31:

	Actual Cost		Book/ Adjusted Carrying Value (excluding interest)		Fair Value		Other Than Temporary Impairment Losses Recognized

2022	($ in thousands)

Residential mortgage-backed securities	$	12,177	$	14,269	$	18,381	$	—

2021
Residential mortgage-backed securities	$	19,794	$	21,973	$	30,760	$	1,134

PROTECTIVE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)

Repurchase Agreements and Securities Lending Transactions

For repurchase agreements, the Company initiates short-term (typically less than 30 days) collateralized borrowings whereby cash is received, and securities or mortgage loans are posted as collateral. The Company reports the cash proceeds as a liability, and the difference between the cash proceeds and the amount at which the securities or mortgage loans are reacquired as interest expense. As of December 31, 2022, the Company had borrowed money obligations of $925.0 million which represents the cash amount to be paid at the repurchase agreement’s maturity on January 3, 2023. As of December 31, 2021, the Company had borrowed money obligations of $1,308.3 million which represents the cash amounts of $1,150.0 million to be paid at the repurchase agreement’s maturity on January 3, 2022, and $158.3 million which was an open repo and had no stated maturity date as of December 31, 2021.

As of December 31, 2022, the Company has posted $1,270.3 million (statutory carrying value) of its assets as repurchase agreement collateral, all of which was classified as “Bonds” as of December 31, 2022. In connection with the outstanding repurchase agreement, the Company has also recognized a liability of $925.0 million, which is classified as “Borrowed money and interest thereon” on the Company’s December 31, 2022 Statement of Admitted Assets, Liabilities, and Capital and Surplus.

As of December 31, 2021, the Company has posted $1,441.3 million (statutory carrying value, prior to the nonadmission of $38.1 million of bonds) of its assets as repurchase agreement collateral, of which $363.5 million was classified as “Mortgage loans on real estate” and $1,077.8 million was classified as “Bonds” as of December 31, 2021. In connection with the outstanding repurchase agreement, the Company has also recognized a liability of $1,308.3 million, which is classified as “Borrowed money and interest thereon” on the Company’s December 31, 2021 Statement of Admitted Assets, Liabilities, and Capital and Surplus.

The Company participates in securities lending, primarily as an investment yield enhancement, whereby securities that are held as investments are loaned to third parties for short periods of time. The Company requires collateral at least equal to 102% of the fair value of the loaned securities to be separately maintained. The loaned securities’ fair value is monitored on a daily basis and collateral is adjusted accordingly. The Company maintains ownership of the securities at all times and is entitled to receive from the borrower any payments for interest received on such securities during the loan term. Securities lending transactions are accounted for as secured borrowings. As collateral for the loaned securities, the Company receives cash, which is primarily reinvested in short-term repurchase agreements, which are also collateralized by U.S. Government or U.S. Government Agency securities, and government money market funds. As of December 31, 2022, securities with a fair value of $156.5 million consisting of bonds and preferred stocks were loaned under these agreements. As of December 31, 2022, the fair value of the invested collateral related to these agreements was $162.1 million. The Company has an obligation to return $162.1 million of collateral to the collateral investment counterparties.

As of December 31, 2021, securities with a fair value of $173.5 million consisting of bonds and preferred stocks were loaned under these agreements. As of December 31, 2021, the fair value of the invested collateral related to these agreements was $179.1 million. The Company has an obligation to return $179.1 million of collateral to the collateral investment counterparties.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

The collateral received related to the Company’s securities lending activities for 30 days or less was $162.1 million as of December 31, 2022. The fair value of that collateral and the portion of that collateral that was sold or repledged was also $162.1 million as of December 31, 2022. The collateral received related to the Company’s securities lending activities for 30 days or less was $179.1 million as of December 31, 2021. The fair value of that collateral and the portion of that collateral that was sold or repledged was also $179.1 million as of December 31, 2021.

The Company receives primarily cash collateral in an amount in excess of the fair value of the loaned securities. The Company reinvests the cash in overnight U.S. Government repurchase agreements.

The Company’s securities lending program is not administered by an affiliated agent.

The following details the collateral reinvested related to the Company’s securities lending as of December 31:

	2022				2021
	Amortized Cost		Fair Value		Amortized Cost		Fair Value

	($ in thousands)

30 Days or Less	$	162,119	$	162,119	$	179,083	$	179,083

The cash the Company receives is invested in short-term U.S. Government repurchase agreements, and therefore, matches the maturity date of the collateral to be returned.

The Company did not accept any collateral that was not permitted by contract or custom to sell or repledge during the period. The Company did not have any securities lending collateral transactions that extend beyond one year from the reporting date.

Repurchase Agreements Transactions Accounted for as Secured Borrowing

While the Company anticipates that the cash flows of its operations will be sufficient to meet its investment commitments and operating cash needs in a normal credit market environment, the Company recognizes that investment commitments scheduled to be funded may, from time to time, exceed the funds then available. Therefore, the Company has established repurchase agreement programs to provide liquidity when needed. The Company expects that the rate received on collateral posted will equal or exceed its borrowing rate. Under this program, the Company may, from time to time, sell an investment security at a specific price and agree to repurchase that security at another specified price at a later date. These borrowings are typically for a term less than 90 days. The fair value of securities to be repurchased is monitored and collateral levels are adjusted where appropriate to protect the counterparty against credit exposure. Cash received is invested in fixed maturity securities, and the agreements provided for net settlement in the event of default or on termination of the agreements. Due to the short tenor of the repurchase agreements, the Company would not expect any stress on liquidity to be an issue.

If market deterioration is detected and/or additional sources of liquidity are needed to manage asset/liability mismatches, the Company would draw down short-term investment positions and conserve cash by ceasing new investment activity. The Company is also a member of the Federal Home Loan Bank of Cincinnati, also has a revolving line of credit which could be accessed, as well as intercompany loan agreements set up with PLAIC, WCL, and MONY, if needed.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

The types of repurchase agreement trades used during 2022 are as follows:

	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Bilateral (Yes/No)	Yes	Yes	Yes	Yes
Tri-Party (Yes/No)	Yes	Yes	Yes	Yes

The types of repurchase agreement trades used during 2021 are as follows:

	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Bilateral (Yes/No)	No	Yes	Yes	Yes
Tri-Party (Yes/No)	Yes	Yes	Yes	Yes

The types of repurchase agreement trades used during 2020 are as follows:

	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Bilateral (Yes/No)	No	No	No	No
Tri-Party (Yes/No)	Yes	Yes	Yes	Yes

A summary of the maturity time frame and ending balance of repurchase agreement transactions during 2022 is as follows:

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter

	($ in thousands)
Maximum Amount
Open - No Maturity	$	164,685	$	3,407	$	—	$	—
Overnight		1,450,000		1,600,000		1,425,000		1,250,000

Ending Balance
Open - No Maturity	$	86,829	$	—	$	—	$	—
Overnight		650,000		1,020,000		1,200,000		925,000

A summary of the maturity time frame and ending balance of repurchase agreement transactions during 2021 is as follows:

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter

	($ in thousands)
Maximum Amount
Open - No Maturity	$	—	$	69,856	$	216,366	$	169,478
Overnight		1,000,000		875,000		1,000,000		1,600,000

Ending Balance
Open - No Maturity	$	—	$	69,856	$	169,478	$	158,290
Overnight		785,000		875,000		850,000		1,150,000

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

The Company had no securities sold and/or acquired that resulted in default during 2022 and 2021.

A summary of securities "sold" under repurchase agreement - secured borrowing during 2022 is as follows:

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
	($ in thousands)
Maximum Amount
BACV		XXX		XXX		XXX	$	1,744,427
Fair Value	$	1,762,332	$	1,784,643	$	1,508,899		1,326,989

Ending Balance
BACV		XXX		XXX		XXX	$	1,270,342
Fair Value	$	791,378	$	1,115,916	$	1,265,980		967,487

A summary of securities "sold" under repurchase agreement - secured borrowing during 2021 is as follows:

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
	($ in thousands)
Maximum Amount
BACV		XXX		XXX		XXX	$	1,958,165
Fair Value	$	1,073,514	$	1,004,517	$	1,246,148		1,933,591

Ending Balance
BACV		XXX		XXX		XXX	$	1,441,341
Fair Value	$	842,960	$	1,004,517	$	1,034,816		1,417,256

A summary of securities "sold" under repurchase agreement - secured borrowing during 2020 is as follows:

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
	($ in thousands)
Maximum Amount
BACV		XXX		XXX		XXX	$	731,247
Fair Value	$	523,027	$	206,552	$	593,693		751,937

Ending Balance
BACV		XXX		XXX		XXX	$	355,132
Fair Value	$	—	$	103,190	$	153,681		366,012

As of December 31, 2022, the Company held securities “sold” under repurchase agreement – secured borrowing consisting of NAIC 1 bonds with a carrying value of $1.3 billion and fair value of $1.0 billion.

As of December 31, 2021, the Company held securities “sold” under repurchase agreement – secured borrowing consisting of NAIC 1 bonds with a carrying value of $1.4 billion and fair value of $1.4 billion, and NAIC 2 bonds with a carrying value of $7.9 million and fair value of $9.1 million. The fair value of nonadmitted bonds was $38.1 million as of December 31, 2021.

PROTECTIVE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)

Details of the collateral received - secured borrowing for the year ended December 31, 2022, is as follows:

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
	($ in thousands)
Maximum Amount
Cash	$	1,614,685	$	1,603,407	$	1,425,000	$	1,250,000

Ending Balance
Cash	$	736,829	$	1,020,000	$	1,200,000	$	925,000

Details of the collateral received - secured borrowing for the year ended December 31, 2021, is as follows:

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
	($ in thousands)
Maximum Amount
Cash	$	1,000,000	$	944,856	$	1,216,366	$	1,769,478

Ending Balance
Cash	$	785,000	$	944,856	$	1,019,478	$	1,308,290

The Company had cash collateral received - secured borrowing of $0.9 billion and $1.3 billion as of December 31, 2022 and 2021, respectively.

The allocation of aggregate collateral by remaining contractual maturity as of December 31 is as follows:

	Fair Value
	2022		2021

	($ in thousands)

Overnight and Continuous	$	925,000	$	1,308,290

The Company did not receive any cash collateral that was reinvested in 2022 and 2021.

The Company recognized the following liability to return cash collateral for 2022:

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
	($ in thousands)
Maximum Amount
Cash (Collateral-All)	$	1,614,685	$	1,603,407	$	1,425,000	$	1,250,000

Ending Balance
Cash (Collateral-All)	$	736,829	$	1,020,000	$	1,200,000	$	925,000

PROTECTIVE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)

The Company recognized the following liability to return cash collateral for 2021:

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
	($ in thousands)
Maximum Amount
Cash (Collateral-All)	$	1,000,000	$	944,856	$	1,216,366	$	1,769,478

Ending Balance
Cash (Collateral-All)	$	785,000	$	944,856	$	1,019,478	$	1,308,290

For 2022 and 2021, the Company had no reverse repurchase agreements transactions accounted for as secured borrowing and no repurchase agreements or reverse repurchase agreement transactions accounted for as a sale.

Mortgage Loans

The Company's mortgage loan portfolio was characterized by the following as of December 31:

	Percent of Portfolio
	2022			2021
Retail		25.6	%		29.0	%
Other		22.5			22.1
Apartments		18.7			17.5
Industrial		19.6			16.4
Office		12.3			13.5
Lodging		1.2			1.4
Mixed use		0.1			0.1
Total		100.0	%		100.0	%

The Company specializes in making mortgage loans on either credit-oriented or credit-anchored commercial properties, most of which are strip shopping centers in smaller towns and cities. The Company’s mortgage loan portfolio had the following concentrations by location greater than or equal to 5% as of December 31, 2022 and 2021:

	Percent of Portfolio				Percent of Portfolio
State	2022			State	2021
California		10.7	%	California		10.8	%
Florida		7.9		Florida		7.7
Texas		7.1		Texas		7.0
North Carolina		6.1		Alabama		6.3
Alabama		5.7		North Carolina		5.4
Michigan		5.3

The minimum and maximum lending rates for commercial mortgage loans originated by the Company during 2022 were 2.25% and 5.25%, respectively. The minimum and maximum lending rates for commercial mortgage loans originated by the Company during 2021 were 1.875% and 4.5%, respectively. The minimum and maximum lending rates for commercial mortgage loans originated by the Company during 2020 were 2.88% and 4.75%, respectively.

PROTECTIVE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)

The maximum percentage of any one loan to the value of security at the time of the loan was 88%. The target percentage of any one loan to the value of collateral at the time of the loan, exclusive of insured, guaranteed, or purchase money mortgages is generally 75%. The Company also offers a commercial loan product under which the Company will permit a loan-to-value ratio of up to 85% in exchange for a participating interest in the cash flows from the underlying real estate. The Company uses this loan-to-value ratio as a credit quality indicator, which is a component of the Company’s ongoing monitoring of the credit risk of its mortgage loan portfolio. The Company also monitors borrower conditions such as payment practices, borrower credit, operating performance, and property conditions, as well as ensuring the timely payment of property taxes and insurance. Through this monitoring process, the Company assesses the risk of each loan. As of December 31, 2022, the Company had mortgage loans with outstanding principal totaling $392.1 million which exceeded a 75% loan-to-value ratio in the total amount of $32.1 million. For loans the Company held as of December 31, 2022, the maximum percentage of any one loan to the value of security as of the most recent appraisal was 83%. As of December 31, 2021, the Company had mortgage loans with outstanding principal totaling $487.1 million which exceeded a 75% loan-to-value ratio in the total amount of $38.3 million. For loans the Company held as of December 31, 2021, the maximum percentage of any one loan to the value of security as of the most recent appraisal was 87%.

The Company had $61 thousand and $0 of taxes, assessments, or any amounts advanced and not included in the mortgage loan total as of December 31, 2022 and 2021, respectively.

An aging analysis of the Company’s commercial mortgage loans as of December 31 is as follows:

	2022		2021

	($ in thousands)
Recorded Investment (All)
Current	$	10,558,447	$	9,528,847
30-59 days past due		—		28,370

Participant or Co-lender in a Mortgage Loan Agreement
Recorded investment	$	329,782	$	455,983

The Company’s had no investments in impaired loans as of December 31, 2022 and 2021.

The Company had the following allowances for credit losses:

	2022		2021

	($ in thousands)

Balance at beginning of period	$	16,727	$	12,400
Additions charged to operations		10,434		8,712
Less: Direct write-downs charged against the allowances		10,387		—
Less: Recoveries of amounts previously charged off		856		4,385
Balance at end of period	$	15,918	$	16,727

The Company had no mortgage loans held in the General Account derecognized as a result of foreclosure in 2022 and 2021.

PROTECTIVE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)

As of December 31, 2022 and 2021, the Company had no mortgages more than 90 days past due. During 2022 and 2021, the Company excluded no interest from investment income due and accrued due to delinquency or uncollectibility on outstanding loans.

Debt Restructuring

On March 27, 2020, H.R. 748, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), was signed into law. Section 4013 of the CARES Act provides additional relief for certain loan modifications made as a result of the COVID-19 pandemic. On December 27, 2020, the Consolidated Appropriations Act, 2021 was signed into law, which slightly modified and extended the original CARES Act through January 1, 2022. In conjunction with the Consolidated Appropriations Act, the NAIC Statutory Accounting Principles Working Group extended certain limited time exceptions in INT 20-03 and INT 20-07, which align with the provisions of the CARES Act, as amended, and provide relief from the requirement to assess certain loan modifications as troubled debt restructurings or more than minor modifications for certain loans modified in response to COVID-19. In consideration of this guidance, the Company has provided certain relief to certain of its commercial loan borrowers via its COVID-19 Commercial Mortgage Loan Program (the “Loan Modification Program”). The provisions of INT 20-03 and 20-07 expired on January 2, 2022. As of December 31, 2021, the Company had a total of 224 loans with $1.8 billion in unpaid principal balance under the Loan Modification Program. The modifications under this program may have included agreements to defer principal payments only or to defer principal and interest payments for a specified period of time. None of these modifications were considered troubled debt restructurings.

During the year ended December 31, 2022, certain mortgage loan transactions occurred that were accounted for as troubled debt restructurings pursuant to SSAP No. 36, “Troubled Debt Restructuring”. Transactions accounted for as troubled debt restructurings during the year included the recognition of permanent impairments to principal and were the result of agreements between the creditor and debtor. During the year ended December 31, 2022, the Company identified two loans whose principal was permanently impaired. The loans with a carrying value of $17.3 million were settled with a discounted payoff. During the year ended December 31, 2021, the Company identified one loan whose principal was permanently impaired. The loan with a carrying value of $20.0 million was settled with a discounted payoff. During the year ended December 31, 2020, the Company identified four loans whose principal was permanently impaired. Two loans with a carrying value of $3.7 million were settled with a discounted payoff.

During the years ended December 31, 2022, 2021, and 2020, the realized loss reported by the Company for these transactions was $7.4 million, $1.7 million, and $3.0 million, respectively. These transactions did not adversely affect the Company’s liquidity or ability to maintain proper matching of assets and liabilities.

The Company had no investment in restructured loans as of December 31, 2022 and 2021.

The Company accrues interest income on impaired loans to the extent it is deemed collectible (delinquent less than 90 days) and the loan continues to perform under its original or restructured contractual terms. Interest income on non-performing loans is generally recognized on a cash basis.

PROTECTIVE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)

Common Stocks-Affiliated

The Company’s 100% ownership interest in the outstanding common stock of its affiliates (admitted value) as of December 31 was as follows:

	2022		2021

	($ in thousands)

Protective Life and Annuity Ins. Co.	$	540,797	$	503,367
West Coast Life Insurance Co.		388,591		403,828
MONY Life Insurance Company		350,843		334,549
Protective Property & Casualty Insurance Co.		209,094		203,348
A.U.L. Corp.		307,104		—
Total common stocks-affiliated	$	1,796,429	$	1,445,092

Common Stock-Federal Home Loan Bank (“FHLB”) Agreements

The Company is a member of the FHLB of Cincinnati. Through its membership, the Company received cash advances in the amount of $3,125.0 million and $2,800.0 million as of December 31, 2022 and 2021, respectively. These cash advances are the result of the Company issuing funding agreements to and entering repurchase agreements with the FHLB of Cincinnati, for $2,200.0 million and $925.0 million, respectively for 2022, and $1,650.0 million and $1,150.0 million, respectively, for 2021.

The Company uses the funds obtained from the funding agreements in an investment spread strategy, consistent with its other investment spread operations. The Company applies SSAP No. 52, “Deposit-Type Contracts” accounting treatment to the funding agreements, consistent with its other deposit-type contracts. It is not part of the Company’s strategy to utilize these funds for operations, and any funds obtained from issuing funding agreements to the FHLB of Cincinnati for use in general operations would be accounted for consistently with SSAP No. 15, “Debt and Holding Company Obligations”. Amounts received under repurchase agreements are accounted for pursuant to SSAP No. 103R.

PROTECTIVE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)

The Company’s aggregate totals of FHLB capital stock as of December 31 are as follows:

2022	1 Total 2+3		2 General Account		3 Separate Accounts

	($ in thousands)

Membership stock - Class A	$	—	$	—	$	—
Membership stock - Class B		20,000		20,000		—
Activity stock		152,500		152,500		—
Excess stock		—		—		—
Aggregate total	$	172,500	$	172,500	$	—

Actual or estimated borrowing capacity as determined by the insurer	$	4,040,679		XXX		XXX

2021	1 Total 2+3		2 General Account		3 Separate Accounts

	($ in thousands)

Membership stock - Class A	$	—	$	—	$	—
Membership stock - Class B		25,000		25,000		—
Activity stock		118,475		118,475		—
Excess stock		—		—		—
Aggregate total	$	143,475	$	143,475	$	—

Actual or estimated borrowing capacity as determined by the insurer	$	4,175,517		XXX		XXX

The Company’s Class B membership stock is not eligible for redemption.

The amounts pledged as of December 31 are as follows:

	Fair Value		Carrying Value		Aggregate Total Borrowing

	($ in thousands)

December 31, 2022 Total General and Separate Accounts Total Collateral Pledged	$	3,440,499	$	4,358,606	$	3,125,000
December 31, 2022 General Account Total Collateral Pledged	$	3,440,499	$	4,358,606	$	3,125,000
December 31, 2022 Separate Accounts Total Collateral Pledged	$	—	$	—	$	—
December 31, 2021 Total General and Separate Accounts Total Collateral Pledged	$	3,122,870	$	3,148,979	$	2,800,000
December 31, 2021 General Account Total Collateral Pledged	$	3,122,870	$	3,148,979	$	2,800,000
December 31, 2021 Separate Accounts Total Collateral Pledged	$	—	$	—	$	—

PROTECTIVE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)

The maximum amount pledged during the reporting period is as follows:

	Fair Value		Carrying Value		Aggregate Total Borrowing

	($ in thousands)

2022 Total General and Separate Accounts Total Collateral Pledged	$	3,810,133	$	4,803,655	$	3,450,000
2022 General Account Total Collateral Pledged	$	3,810,133	$	4,803,655	$	3,450,000
2022 Separate Accounts Total Collateral Pledged	$	—	$	—	$	—
2021 Total General and Separate Accounts Total Collateral Pledged	$	3,292,287	$	3,318,862	$	2,950,000
2021 General Account Total Collateral Pledged	$	3,292,287	$	3,318,862	$	2,950,000
2021 Separate Accounts Total Collateral Pledged	$	—	$	—	$	—
2020 Total General and Separate Accounts Total Collateral Pledged	$	2,519,845	$	2,620,747	$	2,300,000
2020 General Account Total Collateral Pledged	$	2,519,845	$	2,620,747	$	2,300,000
2020 Separate Accounts Total Collateral Pledged	$	—	$	—	$	—

Information regarding borrowings from the FHLB is as follows:

Amounts as of reporting date December 31, 2022	1 Total 2+3		2 General Account		3 Separate Accounts		4 Funding Agreements Reserves Established

	($ in thousands)

Debt	$	925,000	$	925,000	$	—		XXX
Funding agreements		2,200,000		2,200,000		—		2,206,410
Other		—		—		—		XXX
Aggregate total	$	3,125,000	$	3,125,000	$	—	$	2,206,410

Amounts as of reporting date December 31, 2021	1 Total 2+3		2 General Account		3 Separate Accounts		4 Funding Agreements Reserves Established

	($ in thousands)

Debt	$	1,150,000	$	1,150,000	$	—		XXX
Funding agreements		1,650,000		1,650,000		—		1,635,843
Other		—		—		—		XXX
Aggregate total	$	2,800,000	$	2,800,000	$	—	$	1,635,843

PROTECTIVE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)

Maximum amount: 2022	1 Total 2+3		2 General Account		3 Separate Accounts

	($ in thousands)

Debt	$	1,250,000	$	1,250,000	$	—
Funding agreements		2,200,000		2,200,000		—
Other		—		—		—
Aggregate total	$	3,450,000	$	3,450,000	$	—

Maximum amount: 2021	1 Total 2+3		2 General Account		3 Separate Accounts

	($ in thousands)

Debt	$	1,600,000	$	1,600,000	$	—
Funding agreements		1,350,000		1,350,000		—
Other		—		—		—
Aggregate total	$	2,950,000	$	2,950,000	$	—

FHLB - prepayment obligations for 2022, 2021 and 2020:

		Does the company have prepayment obligations under the following arrangements (YES/NO)?
Debt		NO
Funding agreements		YES
Other		NO

Real Estate

The book values of the Company's investments in real estate, by category, as of December 31 are as follows:

	2022		2021

	($ in thousands)

Property occupied by the Company	$	109,754	$	112,410
Properties held for the production of income		3,331		3,211
Properties held for sale		4,883		4,981
Total real estate	$	117,968	$	120,602

The Company did not recognize any permanent impairment write-downs in real estate property held as of December 31, 2022 and 2021.

PROTECTIVE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)

Restricted Assets

The Company had the following restricted assets, all within the General Account, as of December 31:

Restricted Asset Category	2022		2021		Increase/ (Decrease)			% of Admitted Assets

	($ in thousands)

Collateral held under security lending agreements	$	162,119	$	179,083	$	(16,964	)		0.206	%
Subject to repurchase agreements		—		166,068		(166,068	)		—	%
Federal home loan bank capital stock		172,500		143,475		29,025			0.219	%
On deposit with states		15,074		14,964		110			0.019	%
Pledged as collateral to FHLB (including assets backing funding agreements)		4,358,606		3,110,875		1,247,731			5.539	%
Collateral for derivative instruments		150,111		273,130		(123,019	)		0.191	%
Total restricted assets	$	4,858,410	$	3,887,595	$	970,815			6.174	%

The Company had no other restricted assets as of December 31, 2022 and 2021.

The Company had $62.2 million of cash collateral received and $162.1 million of reinvested collateral assets owned that are reflected as assets within the Company’s Statement of Admitted Assets, Liabilities and Capital and Surplus as of December 31, 2022, representing 0.096% and 0.251% of total admitted assets excluding Separate Accounts, respectively. The recognized obligation to return the collateral assets was $224.3 million, representing 0.379% of total liabilities excluding Separate Accounts as of December 31, 2022.

The Company had $187.5 million of cash collateral received and $179.1 million of reinvested collateral assets owned that are reflected as assets within the Company’s Statement of Admitted Assets, Liabilities, and Capital and Surplus as of December 31, 2021, representing 0.291% and 0.278% of total admitted assets excluding Separate Accounts, respectively. The recognized obligation to return the collateral assets was $366.6 million, representing 0.620% of total liabilities excluding Separate Accounts as of December 31, 2021.

There was no collateral received and reflected as assets within the Company’s Separate Accounts as of December 31, 2022 and 2021.

Joint Ventures, Partnerships, and Limited Liability Companies

The Company had no investments in joint ventures, partnerships, or limited liability companies that exceed 10% of its admitted assets as of December 31, 2022 or 2021. The Company did not recognize any impairment write-downs for its investments in joint ventures, partnerships, and limited liability companies as of December 31, 2022 and 2021.

Wash Sales

In the normal course of the Company’s investment management, securities can be sold and reacquired within 30 days. This practice is known as wash sales. The Company did not record any wash sales for the years ended December 31, 2022, 2021 or 2020.

PROTECTIVE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)

6. Income Taxes

The Company is included in the consolidated federal income tax return of PLC and its subsidiaries. The method of allocation of current income taxes between the affiliates is subject to a written agreement under which the Company incurs a liability to PLC to the extent that a separate return calculation indicates that the Company has a federal income tax liability. If the Company has an income tax benefit, the benefit is recorded currently to the extent that it can be carried back against prior years’ separate company income tax expense. Any amount not carried back is carried forward on a separate company basis. Income taxes recoverable (payable) are recorded in the federal income taxes receivable (payable) account and are settled periodically, per the tax sharing agreement.

The components of the net deferred tax asset/(deferred tax liability) (“DTA”/(“DTL”)) as of December 31 are as follows:

	12/31/2022						12/31/2021						Change
	(1)		(2)		(3)		(4)		(5)		(6)		(7)			(8)		(9)

					(Col 1+2)						(Col 4+5)							(Col 7+8)
1.	Ordinary		Capital		Total		Ordinary		Capital		Total		Ordinary			Capital		Total

	($ in thousands)
(a) Gross Deferred Tax Assets	$	695,120	$	5,798	$	700,918	$	659,581	$	4,740	$	664,321	$	35,539		$	1,058	$	36,597
(b) Statutory Valuation Allowance Adjustments		—		—		—		—		—		—		—			—		—
(c) Adjusted Gross Deferred Tax Assets (1a - 1b)		695,120		5,798		700,918		659,581		4,740		664,321		35,539			1,058		36,597
(d) Deferred Tax Assets Nonadmitted		425,820		—		425,820		380,494		—		380,494		45,326			—		45,326
(e) Subtotal Net Admitted Deferred Tax Asset) (1c-1d)		269,300		5,798		275,098		279,087		4,740		283,827		(9,787	)		1,058		(8,729	)
(f) Deferred Tax Liabilities		89,389		—		89,389		103,773		—		103,773		(14,384	)		—		(14,384	)
(g)Net Admitted Deferred Tax Asset/(Net Deferred Tax Liability) (1e-1f)	$	179,911	$	5,798	$	185,709	$	175,314	$	4,740	$	180,054	$	4,597		$	1,058	$	5,655

PROTECTIVE LIFE INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)

	12/31/2022						12/31/2021						Change
	(1)		(2)		(3)		(4)		(5)		(6)		(7)			(8)		(9)

					(Col 1+2)						(Col 4+5)							(Col 7+8)
2.	Ordinary		Capital		Total		Ordinary		Capital		Total		Ordinary			Capital		Total

	($ in thousands)
Admission Calculation Components - SSAP No. 101

(a) Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carryback	$	—	$	5,798	$	5,798	$	—	$	4,740	$	4,740	$	—		$	1,058	$	1,058
(b) Adjusted Gross Deferred Tax Assets Expected to be Realized (Excluding The Amount of Deferred Tax Assets from 2(a) above) After Application of the Threshold Limitation (The Lesser of 2(b)(1) and 2(b)2 Below)		179,911		—		179,911		175,314		—		175,314		4,597			—		4,597
1) Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		179,911		—		179,911		175,314		—		175,314		4,597			—		4,597
2) Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX		XXX		772,351		XXX		XXX		770,777		XXX			XXX		1,574
(c) Adjusted Gross Deferred Tax Assets (Excluding The Amount of Deferred Tax Assets From 2(a) and 2(b) above) Offset by Gross Deferred Tax Liabilities		89,389		—		89,389		103,773		—		103,773		(14,384	)		—		(14,384	)
(d) Deferred Tax Assets Admitted as the result of Application of SSAP No. 101. Total 2(a) +2(b) +2(c)	$	269,300	$	5,798	$	275,098	$	279,087	$	4,740	$	283,827	$	(9,787	)	$	1,058	$	(8,729	)

	2022			2021

	($ in thousands)

(a) Ratio Percentage Used To Determine Recovery Period And Threshold Limitation Amount		803	%		926	%

(b) Amount Of Adjusted Capital And Surplus Used To Determine Recovery Period And Threshold Limitation In 2(b)2 Above.	$	5,670,263		$	5,775,017

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

	12/31/2022						12/31/2021						Change
	(1) Ordinary			(2) Capital			(3) Ordinary			(4) Capital			(5) (Col 1-3) Ordinary			(6) (Col 2-4) Capital

	($ in thousands)
Impact of Tax Planning Strategies

(a) Determination of Adjusted Gross Deferred Tax Assets and Net Admitted Deferred Tax assets, By Tax Character as a Percentage
1. Adjusted Gross DTA Amount From 1(c)	$	695,120		$	5,798		$	659,581		$	4,740		$	35,539		$	1,058
2. Percentage of Adjusted Gross DTAs By Tax Character Attributable to the Impact of Tax Planning Strategies		—	%		—	%		—	%		—	%		—	%		—	%
3. Net Admitted Adjusted Gross DTA Amount From 1(e)	$	269,300		$	5,798		$	279,087		$	4,740		$	(9,787	)	$	1,058
4. Percentage of Net Admitted Adjusted Gross DTAs by Tax Character Admitted Because of the Impact of Tax Planning Strategies		—	%		—	%		—	%		—	%		—	%		—	%
Does the Company’s tax-planning strategies include the use of reinsurance?								Yes						No			X

The Company has no DTLs that are not recognized.

Current income taxes incurred consist of the following major components:

1.	(1) 2022			(2) 2021		(3) (Col 1-2) Change

	($ in thousands)
(a) Federal	$	125,600		$	122,732	$	2,868
(b) Foreign		—			—		—
(c) Subtotal (1a+1b)		125,600			122,732		2,868
(d) Federal income tax on capital gains		(96,944	)		11,883		(108,827	)
(e) Utilization of capital loss carryforwards		—			—		—
(f) Other		—			—		—
(g) Federal and foreign income taxes incurred (1c+1d+1e+1f)	$	28,656		$	134,615	$	(105,959	)

1.	(1) 2021		(2) 2020		(3) (Col 1-2) Change

	($ in thousands)
(a) Federal	$	122,732	$	80,174	$	42,558
(b) Foreign		—		—		—
(c) Subtotal (1a+1b)		122,732		80,174		42,558
(d) Federal income tax on capital gains		11,883		31,810		(19,927	)
(e) Utilization of capital loss carryforwards		—		—		—
(f) Other		—		—		—
(g) Federal and foreign income taxes incurred (1c+1d+1e+1f)	$	134,615	$	111,984	$	22,631

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

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

2.
Deferred Tax Assets		(1) 12/31/2022		(2) 12/31/2021		(3) (Col 1-2) Change

		($ in thousands)
(a) Ordinary:
(1) Discounting of unpaid losses	$	56	$	66	$	(10	)
(2) Unearned premium reserve		—		—		—
(3) Policyholder reserves		171,790		174,678		(2,888	)
(4) Investments		25,966		5,213		20,753
(5) Deferred acquisition costs		438,179		422,821		15,358
(6) Policyholder dividends accrual		4,344		6,070		(1,726	)
(7) Fixed assets		—		—		—
(8) Compensation and benefits accrual		11,610		7,300		4,310
(9) Pension accrual		—		—		—
(10) Receivables - nonadmitted		15,273		14,909		364
(11) Net operating loss carryforward		—		—		—
(12) Tax credit carryforward		—		—		—
(13) Other		27,902		28,524		(622	)
(99) Subtotal (sum of 2a1 through 2a13)		695,120		659,581		35,539

(b) Statutory valuation allowance adjustment		—		—		—
(c) Nonadmitted		425,820		380,494		45,326
(d) Admitted ordinary deferred tax assets (2a99-2b-2c)		269,300		279,087		(9,787	)

(e) Capital:
(1) Investments		5,798		4,740		1,058
(2) Net capital loss carryforward		—		—		—
(3) Real estate		—		—		—
(4) Other		—		—		—
(99) Subtotal (2e1+2e2+2e3+2e4)		5,798		4,740		1,058

(f) Statutory valuation allowance adjustment		—		—		—
(g) Nonadmitted		—		—		—
(h) Admitted capital deferred tax assets (2e99-2f-2g)		5,798		4,740		1,058
(i) Admitted deferred tax assets (2d+2h)	$	275,098	$	283,827	$	(8,729	)

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

3.
Deferred Tax Liabilities		(1) 12/31/2022		(2) 12/31/2021		(3) (Col 1-2) Change

		($ in thousands)
(a) Ordinary
(1) Investments	$	52,072	$	57,025	$	(4,953	)
(2) Fixed assets		2,026		2,350		(324	)
(3) Deferred and uncollected premium		230		—		230
(4) Policyholder reserves		28,262		36,012		(7,750	)
(5) Other		6,799		8,386		(1,587	)
(99) Subtotal (3a1+3a2+3a3+3a4+3a5)		89,389		103,773		(14,384	)

(b) Capital:
(1) Investments		—		—		—
(2) Real estate		—		—		—
(3) Other		—		—		—
(99) Subtotal (3b1+3b2+3b3)		—		—		—

(c) Deferred tax liabilities (3a99+3b99)	$	89,389	$	103,773	$	(14,384	)

4. Net deferred tax assets/liabilities (2i-3c)	$	185,709	$	180,054	$	5,655

The change in net deferred income taxes as of December 31 is comprised of the following (this analysis is exclusive of nonadmitted assets as the change in nonadmitted assets is reported separately from the change in net deferred income tax in the Statements of Changes in Capital and Surplus):

		(1) 12/31/2022		(2) 12/31/2021		(3) (Col 1-2) Change

		($ in thousands)
Adjusted gross deferred tax assets	$	700,918	$	664,321	$	36,597
Total deferred tax liabilities		89,389		103,773		(14,384	)
Net deferred tax assets (liabilities)	$	611,529	$	560,548		50,981
Tax effect of unrealized gains/(losses)						44,544
Tax effect of prior period corrections through surplus						3,064
Change in net deferred income tax					$	3,373

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

	(1) 12/31/2021		(2) 12/31/2020		(3) (Col 1-2) Change

	($ in thousands)
Adjusted gross deferred tax assets	$	664,321	$	660,282	$	4,039
Total deferred tax liabilities		103,773		210,039		(106,266	)
Net deferred tax assets (liabilities)	$	560,548	$	450,243		110,305
Tax effect of unrealized gains/(losses)						52,048
Tax effect of prior period corrections through surplus						(8,794	)
Change in net deferred income tax					$	67,051

On August 16, 2022, H.R. 5376, the Inflation Reduction Act of 2022 (“IRA”) was signed into law. In general, beginning in 2023, it imposes a 15% Corporate Alternative Minimum Tax (“CAMT”) on U.S. corporations if their average annual financial statement pre-tax income exceeds $1 billion. When applicable, this criterion includes such income of a U.S. corporation’s foreign parent. The Company expects to meet this criterion and may be liable for this new tax in the future. The income tax related impacts of the IRA are not material to the Company’s financial statements for the period ended December 31, 2022.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

The provision for federal and foreign income taxes incurred is different from that which would be obtained by applying the statutory federal income tax rate to income before income taxes. The significant items causing this difference at December 31 are as follows:

	2022			Effective Tax Rate (%)			2021			Effective Tax Rate (%)			2020			Effective Tax Rate (%)

	($ in thousands)
Provision computed at statutory rate	$	94,111			21.0	%	$	139,030			21.0	%	$	158,633			21.0	%

Tax on STAT capital gains (losses)		(99,256	)		(22.1	)		(11,969	)		(1.8	)		75,638			10.0
Amortization of IMR		(27,820	)		(6.2	)		(25,937	)		(3.9	)		(22,480	)		(3.0	)
Change in nonadmitted assets		6,813			1.5			(13,150	)		(2.0	)		(3,546	)		(0.5	)
Nondeductible expense		1,546			0.3			766			0.1			1,127			0.2
Tax-exempt income deduction		7,973			1.8			(7,828	)		(1.1	)		(9,045	)		(1.2	)
Dividends received deduction		(8,156	)		(1.8	)		(10,230	)		(1.5	)		—			—
Prior year deferred tax true-up		(2,483	)		(0.6	)		(12,631	)		(1.9	)		6,686			0.9
Prior year current tax true-up		4,857			1.1			18,650			2.8			(7,275	)		(0.9	)
Loss on reinsurance		(17,394	)		(3.9	)		(46,041	)		(7.0	)		(52,882	)		(7.0	)
Elimination of intercompany dividend		(14,280	)		(3.2	)		(13,020	)		(2.0	)		(17,430	)		(2.3	)
Intercompany operating loss carryforward		79,573			17.8			57,760			8.7			59,121			7.8
Intercompany capital loss carryforward		1,169			0.3			(5,112	)		(0.8	)		1,123			0.1
Foreign tax credit		(2,523	)		(0.6	)		(1,874	)		(0.3	)		(2,328	)		(0.3	)
Tax contingencies		—			—			(1,733	)		(0.2	)		—			—
Assets in support of IMR		2,353			0.5			2,010			0.3			(5,274	)		(0.7	)
Reserve change through surplus		—			—			—			—			12,443			1.6
Derivative URGL through surplus		(2,975	)		(0.7	)		(423	)		(0.1	)		(248	)		—
Prior period adjustment through surplus		1,355			0.3			(954	)		(0.1	)		—			—
Rate differential on carryback of intercompany operating loss		—			—			—			—			125			—
STAT reserve change treated as a prior period adjustment		—			—			—			—			1,964			0.3
Deferred intercompany gain of affiliate		—			—			—			—			(28,714	)		(3.8	)
Section 162(m) limitation		420			0.1			250			—			180			—
Total	$	25,283			5.6	%	$	67,564			10.2	%	$	167,818			22.2	%

Federal and foreign income taxes incurred	$	125,600			28.0	%	$	122,732			18.5	%	$	80,174			10.6	%
Tax on capital gains/(losses)		(96,944	)		(21.6	)		11,883			1.8			31,810			4.2
Change in net deferred income taxes charge/(benefit)		(3,373	)		(0.8	)		(67,051	)		(10.1	)		55,834			7.4
Total statutory income taxes	$	25,283			5.6	%	$	67,564			10.2	%	$	167,818			22.2	%

As of December 31, 2022, the Company had no operating loss, no capital loss, and no foreign tax credit carryforwards available to offset future net income subject to federal income taxes.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

The Company incurred the following income taxes in the current year and preceding years that would be available for recoupment in the event of future net losses:

	Ordinary		Capital		Total

	($ in thousands)
2020	$	—	$	26,910	$	26,910
2021		—		1,376		1,376
2022		—		9,314		9,314
Total	$	—	$	37,600	$	37,600

The Company had no deposits admitted under Section 6603 of the Internal Revenue Code as of December 31, 2022 and 2021 .

The Company had no state transferable tax credits at December 31, 2022 or 2021.

The Company's federal income tax return for 2022 will be consolidated with the following entities:

A.U.L. Corp.		New World Warranty Corp.
Asset Protection Financial, Inc.		PIPCO Reinsurance Company, Ltd.
Atlas Peak Insurance Company, Ltd.		Protective Administrative Services, Inc.
AUL Insurance Agency, Inc.		Protective Asset Protection, Inc.
Chesterfield International Reinsurance Limited		Protective Finance Corporation
Concourse Financial Group Agency, Inc.		Protective Finance Corporation II
Concourse Financial Group Securities, Inc.		Protective Finance Corporation IV
D.R.G., Inc.		Protective Life and Annuity Insurance Company
Dealer Services Reinsurance, Ltd.		Protective Life Corporation
Empower Financial Resources, Inc.		Protective Property & Casualty Insurance Company
First Protection Company		Protective Real Estate Holdings, Inc.
First Protection Corporation		The Advantage Warranty Corporation
First Protection Corporation of Florida		United States Warranty Corp.
Golden Gate Captive Insurance Company		USWC Holding Company
Interstate Administrative Services, Inc.		USWC Installment Program, Inc.
Interstate National Corporation		Warranty Business Services Corporation
Interstate National Dealer Services of Florida, Inc.		Warranty Direct, Inc.
Interstate National Dealer Services, Inc.		Warranty Topco, Inc.
Investment Distributors, Inc.		West Coast Life Insurance Company
LASAS Technologies, Inc.		Western Diversified Services, Inc.
MONY Life Insurance Company		Western General Dealer Services, Inc.
National Warranty Corp.		Western General Warranty Corporation
New World Re		Wisconsin A.U.L., Inc.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	12/31/2022		12/31/2021

	($ in thousands)
Balance, beginning of year	$	—	$	1,733
Additions for tax positions of the current year		—		—
Additions for tax positions of prior years		—		—
Reductions of tax positions of prior years:
Changes in judgment		—		—
Settlements during the year		—		—
Lapses of applicable statute of limitations		—		(1,733	)
Balance, end of year	$	—	$	—

There are no unrecognized tax benefits for the years ended December 31, 2022 and 2021.

Any accrued interest related to the unrecognized tax benefits and other accrued income taxes have been included in income tax expense. There were no amounts included in the three-year period ended December 31, 2022, as the parent company maintains responsibility for the interest on unrecognized tax benefits. The Company has no accrued interest associated with unrecognized tax benefits as of December 31, 2022 or 2021.

In general, the Company is no longer subject to income tax examinations by taxing authorities for tax years that began before 2019. Due to IRS adjustments to the Company’s pre-2017 taxable income, the Company has amended certain of its 2014 through 2016 state income tax returns. Such amendments will cause such years to remain open, pending the states’ acceptances of the returns.

The Company does not have any federal income tax loss contingencies for which it is reasonably possible that the total liability will significantly increase within twelve months of the reporting date.

7. Information Concerning Parent and Subsidiaries

Subsidiary Acquisition

On May 2, 2022, the Company completed the acquisition of AUL (the “Acquisition”), as contemplated by an agreement reached in March 2022. The Company accounted for this transaction under the statutory purchase method of accounting as required by SSAP No. 68. The aggregate purchase price was $347.0 million and is subject to adjustments. AUL is carried at $307.1 million at December 31, 2022. No goodwill was recorded in the transaction. The Acquisition was subject to receipt of standard regulatory approvals and satisfaction of customary closing conditions. AUL offers a variety of finance and insurance products, including warranties, vehicle service contracts, and a suite of ancillary products.

Dividends and Capital Contributions

In the first quarter of 2022 the Company paid a $239.0 million ordinary dividend to its parent, PLC. In the second quarter of 2022, the Company paid a $100.0 million ordinary dividend to PLC. The Company paid no dividends to PLC during 2021 and 2020.

During 2022, the Company received a cash capital contribution of $100.0 million from PLC. PLC made no cash capital contribution to the Company during 2021 and 2020.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

The Company received the following distributions from subsidiaries during the years ended December 31, certain of which were treated as a return of capital:

	2022		2021		2020

	($ in thousands)
West Coast Life Insurance Company	$	40,000	$	25,000	$	—
MONY Life Insurance Company		18,000		37,000		38,000
USWC Holding Company		2,000		10,000		6,500
Protective Property & Casualty Insurance Company		10,000		—		10,000
Protective Asset Protection, Inc.		—		1,725		23,300
Western Diversified Services, Inc.		—		4,000		7,000
Golden Gate Captive Insurance Company		91,000		25,000		35,000
A.U.L. Corp.		30,000		—		—
Total distributions received	$	191,000	$	102,725	$	119,800

The Company made the following capital contributions for the years ended December 31:

	2022		2021		2020

	($ in thousands)
Protective Life and Annuity Insurance Company	$	—	$	—	$	100,000
Golden Gate Captive Insurance Company		8,500		9,600		10,230
Total contributions paid	$	8,500	$	9,600	$	110,230

These dividends, distributions and capital contributions were primarily in the form of cash, but some involved the exchange of subsidiary companies and/or intangible assets. The following provides further detail regarding certain of these contributions and distributions:

•

During the first quarter of 2022, the Company’s wholly owned subsidiary, PP&C, paid an ordinary cash dividend of $10.0 million to the Company.

•

During 2022, pursuant to its licensing agreement, GGCIC paid extraordinary cash distributions to the Company of $46.0 million and $45.0 million. These distributions were treated as return of capital distributions.

•

During the fourth quarter of 2022, the Company made a scheduled cash capital contribution of $8.5 million to GGCIC.

•

During the fourth quarter of 2022, the Company’s wholly owned subsidiary, AUL, paid a cash distribution of $30.0 million to the Company. This distribution was treated as a return of capital distribution.

•

During the fourth quarter of 2022, the Company’s wholly owned subsidiary, USWC Holding Company paid a cash distribution of $2.0 million to the Company. This distribution was treated as a return of capital distribution.

•

During the fourth quarter of 2022, the Company’s wholly owned subsidiary, MONY, paid an ordinary cash dividend in the amount of $18.0 million to the Company.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

•

During the fourth quarter of 2022, the Company’s wholly owned subsidiary, WCL, paid an ordinary cash dividend of $40.0 million to the Company.

•

During the first quarter of 2021, pursuant to its licensing agreement, GGCIC paid extraordinary cash distributions to the Company in the amount of $25.0 million. This distribution was treated as a return of capital distribution.

•

In the fourth quarter of 2021, the Company made a scheduled cash capital contribution of $9.6 million to GGCIC.

•

During the fourth quarter of 2021, the Company’s wholly owned subsidiary, WDS, paid a cash distribution of $4.0 million to the Company. This distribution was treated as a return of capital distribution.

•

During the fourth quarter of 2021, the Company’s wholly owned subsidiary, USWC Holding Company paid a cash distribution of $10.0 million to the Company. This distribution was treated as a return of capital distribution.

•

During the fourth quarter of 2021, the Company’s wholly owned subsidiary, PAPI, paid a cash distribution of $1.7 million to the Company. This distribution was treated as a return of capital distribution.

•

During the fourth quarter of 2021, the Company’s wholly owned subsidiary, MONY, paid an ordinary cash dividend in the amount of $37.0 million to the Company.

•

During the fourth quarter of 2021, the Company’s wholly owned subsidiary, WCL, paid an ordinary cash dividend of $25.0 million to the Company.

•

During 2020, the Company received extraordinary dividends of $20.0 million and $15.0 million from GGCIC. These distributions were treated as dividends.

•

During 2020, the Company made a cash capital contribution of $100.0 million to PLAIC.

•

During 2020, the Company made a scheduled cash capital contribution of $10.2 million to GGCIC.

•

During 2020, the Company’s wholly owned subsidiary, MONY, paid an ordinary cash dividend in the amount of $38.0 million to the Company.

•

During 2020, the Company’s wholly owned subsidiary, USWC Holding Company paid a cash distribution of $6.5 million to the Company. This distribution was treated as a return of capital distribution.

•

During 2020, the Company’s wholly owned subsidiary, PP&C, paid an ordinary cash dividend of $10.0 million to the Company.

•

During 2020, the Company’s wholly owned subsidiary, PAPI, paid a cash dividend of $23.3 million to the Company.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

•

During 2020, the Company’s wholly owned subsidiary, WDS, paid a cash distribution of $7.0 million to the Company. This distribution was treated as a return of capital distribution.

Intercompany Agreements and Settlements

The Company routinely receives from, or pays to, affiliates under the control of PLC reimbursements for expenses incurred on one another’s behalf. Receivables and payables among affiliates are generally settled monthly. As of December 31, 2022, the Company had an intercompany receivable of $13.3 million and an intercompany payable of $39.5 million. As of December 31, 2021, the Company had an intercompany receivable of $9.5 million and an intercompany payable of $40.5 million.

The Company entered into an agreement with WCL in 2011 to loan up to $800 million and borrow up to $200 million at variable interest rates. The Company had no outstanding loaned or borrowed amounts as of December 31, 2022 or 2021, under this agreement. No interest expense was incurred under this agreement during the three-year period ended December 31, 2022.

The Company entered into an agreement with PLAIC in 2012 in which a loan can be given to or received from PLAIC subject to certain limitations as described in the agreement. The Company had no loaned or borrowed amounts as of December 31, 2022 or 2021, under this agreement. No interest expense was incurred under this agreement during the three-year period ended December 31, 2022.

The Company entered into an agreement with MONY in 2014 in which a loan can be given to or received from MONY subject to certain limitation as described in the agreement. The Company had no loaned or borrowed amounts as of December 31, 2022 and 2021, under this agreement. No interest expense was incurred under this agreement during the three-year period ended December 31, 2022.

The Company, WCL, and PLC have contracts with certain affiliates to provide investment, legal, and data processing services on a fee basis and other managerial and administrative services on a shared cost basis. In addition, the affiliates have a joint contract relating to allocation of costs for services performed by employees of one affiliate for another. The Company paid $301.7 million, $275.8 million, and $242.0 million during the years ended December 31, 2022, 2021, and 2020, respectively, for these services. The Company also received $111.4 million, $96.1 million, and $90.4 million under these agreements in 2022, 2021, and 2020 respectively.

Certain affiliates lease office space, equipment and/or electronic data processing equipment from the Company based upon amounts that would be similar to those charged to an unrelated company in an arm’s length transaction. The Company received $9.9 million, $10.5 million, and $7.4 million for the years ended December 31, 2022, 2021, and 2020, respectively, for these items.

Intercompany Reinsurance

See Note 10 – Reinsurance for a discussion of the Company’s reinsurance transactions with affiliates.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Subsidiary Guarantees and Support Agreements

There are no guarantees or undertakings for the benefit of an affiliate which result in an actual contingent exposure of the Company’s or any affiliated insurer’s assets to liability, other than insurance contracts entered into in the ordinary course of business, except as follows:

The Company entered into a guaranty agreement on October 27, 1993, with PLAIC. The Company has guaranteed the payment of all insurance policy claims made by the holders or beneficiaries of any policies which were issued after the date of the guaranty agreement in accordance with the terms of said policies. Total liabilities for policies covered by this agreement were $1.8 billion as of December 31, 2022, and $2.0 billion as of December 31, 2021. No payments were made under this guaranty agreement during the three-year period ended December 31, 2022.

The Company entered into a guaranty agreement on December 31, 1995, whereby the Company guaranteed that PLAIC will perform all of the obligations of the Company pursuant to the terms and conditions of an indemnity coinsurance agreement between the Company and an unaffiliated life insurance company. Total liabilities related to this coinsurance agreement were $5.4 million as of December 31, 2022 and $5.5 million as of December 31, 2021. No payments were made under this guaranty agreement during the three-year period ended December 31, 2022.

The Company entered into a guaranty agreement, effective December 23, 1997, whereby the Company has agreed to guarantee that WCL will pay all insurance policy claims made on insurance policies or binders issued by WCL to SouthTrust Corporation (now Wells Fargo & Company) or its affiliated banks. Total liabilities for policies covered by this agreement were $64.9 million as of December 31, 2022 and $64.3 million as of December 31, 2021. No payments were made under this guaranty agreement during the three-year period ended December 31, 2022.

The Company entered into a guaranty agreement on January 12, 1998, whereby the Company guaranteed that the capital and surplus of WCL as of the end of any calendar quarter will be maintained at a level no less than 250% of the "Company Action Level RBC" as defined by the State of Nebraska. In the event that the capital and surplus of WCL is less than the "Company Action Level RBC" at the end of a calendar quarter, the Company will make a capital contribution to WCL in such amount necessary to cure the deficiency. However, in no event shall the cumulative capital contributions be more than 2% of the Company’s admitted assets as of the prior December 31 year end. As of December 31, 2022, 2021 and 2020 the Company had not been required to make capital contributions to WCL in connection with this agreement.

On October 1, 2020, GGCIC entered into a transaction with a term of 20 years, that may be extended up to a maximum term of 25 years, to finance up to $5.0 billion of “XXX” and “AXXX” reserves related to the term life insurance business and universal life insurance with secondary guarantee business that is reinsured to GGCIC by the Company and WCL under the 2020 PLICO-GGCIC and 2020 WCL-GGCIC Agreements. This financing transaction is pursuant to an Excess of Loss Reinsurance Agreement (the “XOL Agreement”) with Hannover Life Reassurance Company of America (Bermuda) Ltd., The Canada Life Assurance Company (Barbados Branch) and RGA Reinsurance Company (Barbados) Ltd. (collectively, the “Retrocessionaires”). Pursuant to the XOL Agreement, in exchange for periodic fees, the Retrocessionaires assume, on an excess of loss basis, the obligation to pay (the “XOL Payments”) each quarter the lesser of (a) the greater of (i) statutory reserves in excess of economic reserves and (ii) the financed amount and (b) if total claims for such quarter exceed the available assets (as set forth in the XOL Agreement) of GGCIC, the amount of such excess. The transaction is “non-recourse” to PLC, WCL and the Company, meaning that none of these companies are liable to reimburse the Retrocessionaires for any XOL Payments required to be made.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

PLC entered into a guaranty dated as of October 1, 2020, pursuant to which PLC agreed to guarantee GGCIC’s payment of certain fees due to the Retrocessionaires under the XOL Agreement. This includes annual contributions to GGCIC to pre-fund estimated fees payable to the Retrocessionaires for the subsequent calendar year. A scheduled contribution of $8.5 million, paid by PLICO, occurred during the fourth quarter of 2022 with respect to estimated fees payable to the Retrocessionaires during 2023. A scheduled contribution of $9.6 million, paid by PLICO, occurred during the fourth quarter of 2021 with respect to estimated fees payable to the Retrocessionaires during 2022. A scheduled contribution of $10.2 million, paid by PLICO, occurred during the fourth quarter of 2020 with respect to estimated fees payable to the Retrocessionaires during 2021.

8. Capital and Surplus, Shareholder’s Dividend Restrictions

Dividends are noncumulative and are paid as determined by the Board of Directors. A life insurance company may pay a dividend without prior approval of the Commissioner of the Department. (“the Commissioner”) in an amount, together with other dividends paid in the past twelve months, that does not exceed an amount equal to the greater of 10% of policyholders’ surplus as of the preceding December 31 or the Company’s net gain from operations, for the preceding year. During 2023, the Company may pay $533.4 million of dividends without the approval of the Commissioner.

The NAIC's risk-based capital requirements require insurance companies to calculate and report information under a risk-based capital formula. These requirements are intended to allow insurance regulators to identify inadequately capitalized insurance companies based upon the types and mixtures of risk inherent in the insurer's operations. The formula includes components for asset risk, liability risk, interest rate exposure, and other factors. The Company was adequately capitalized under the formula as of December 31, 2022 and 2021.

The portion of unassigned funds represented or reduced for cumulative unrealized gains and losses was $(666.1) million and $(454.4) million as of December 31, 2022 and 2021, respectively.

The portion of unassigned funds reduced for nonadmitted assets was $1.1 billion and $1.1 billion as of December 31, 2022 and 2021, respectively.

As of December 31, 2022, the Company had issued the following surplus debentures or similar obligations:

Date Issued	Interest Rate			Original Issue Amount of Notes		Carrying Value of Note		Current Year Interest Expense Recognized		Life-To-Date Interest Expense Recognized		Date of Maturity
5/1/2018		3.550	%	$	55,000		55,000		1,953		9,112		5/1/2038
5/1/2018		3.550	%		55,000		55,000		1,953		9,112		5/1/2038
Total				$	110,000	$	110,000	$	3,906	$	18,224

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

As of December 31, 2021, the Company had issued the following surplus debentures or similar obligations:

Date Issued	Interest Rate			Original Issue Amount of Notes		Carrying Value of Note		Current Year Interest Expense Recognized		Life-To-Date Interest Expense Recognized		Date of Maturity
5/1/2018		3.550	%	$	55,000	$	55,000	$	1,953	$	7,159		5/1/2038
5/1/2018		3.550	%		55,000		55,000		1,953		7,159		5/1/2038
Total				$	110,000	$	110,000	$	3,906	$	14,318

On May 1, 2018, the Company issued two fixed rate 20-year Surplus Notes (the “Notes”), each with a face amount of $55.0 million. The Company received cash for the Notes. The Notes were issued to Liberty Mutual Insurance Company and The Lincoln National Life Insurance Company (“Lincoln Life”), respectively (the “Note Holders”), in conjunction with the reinsurance transaction discussed in Note 10 “Reinsurance Assumed”. The Notes are direct financial obligations of the Company, and the Holders of the Notes cannot require repayment from PLC, or any affiliates and subsidiaries, other than the Company, the direct issuer of the Notes.

The Company pays interest on the principal amount of the Notes on a semi-annual basis subject to regulatory approval. The first payment was made on December 31, 2018. Any payment of principal, including by redemption, or interest on the Notes may only be made with the prior approval of the Commissioner. The Company has received approval from the Commissioner to pay interest on the Notes through December 31, 2023. Except in certain instances that are considered “Events of Default”, the Note Holders have no rights to accelerate payment of principal on the Notes. “Events of Default” include a failure to pay interest or principal on the Notes when it becomes due and payable, or any state or federal agency obtaining an order or grant of approval for the rehabilitation, liquidation, conservation, or dissolution of the Company. The Company reserves the right to repay the Notes at any time, subject to the terms of the Notes and prior regulatory approval.

In the event that the Company is subject to liquidation, holders of Indebtedness, Policy Claims and Prior Claims would be afforded a greater priority under the Liquidation Act and accordingly, would have the right to be paid in full before any payments of interest or principal are made to Note Holders. The Note Holders would have the right to be paid before any payments are made to common stockholders. In addition, the Notes will rank pari passu with future surplus notes issued by the Company and with all other similarly subordinated claims.

9. Liabilities, Contingencies and Assessments

Assessments

Under the insurance guaranty fund laws of most states, insurance companies doing business therein can be assessed up to prescribed limits for policyholder losses incurred by insolvent companies. From time to time, companies may be asked to contribute amounts beyond prescribed limits. It is possible that the Company could be assessed with respect to product lines not offered by the Company. In addition, legislation may be introduced in various states with respect to guaranty fund assessment laws related to insurance products, including long term care insurance and other specialty products, that alters future premium tax offsets received in connection with guaranty fund assessments. As of December 31, 2022 and 2021, the Company accrued liabilities of $6.4 million and $4.3 million, respectively, for future assessments. The Company accrued related assets for future premium tax credits of $5.3 million and $3.3 million as of December 31, 2022 and 2021, respectively. In addition, assets of $0.9 million and $1.3 million as of December 31, 2022 and 2021, respectively, relate to assessments already paid that will be taken as credits on future premium tax returns.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Other Commitments and Contingencies

Scottish Re (U.S.), Inc. ("SRUS") was placed in rehabilitation on March 6, 2019 by the State of Delaware. Under the related order, the Insurance Commissioner of the State of Delaware has been appointed the receiver of SRUS (the “Receiver”) and provided with authority to conduct and continue the business of SRUS in the interest of its cedents, creditors, and stockholder. The order was accompanied by an injunction requiring the continued payment of reinsurance premiums to SRUS and temporarily prohibiting cedents, including the Company, from offsetting premiums payable against receivables from SRUS. On June 20, 2019, the Delaware Court of Chancery (the “Court”) entered an order approving a Revised Offset Plan, which allows cedents, including the Company, to offset premiums under certain circumstances.

A proposed Rehabilitation Plan (“Original Rehabilitation Plan”) was filed by the Receiver on June 30, 2020. The Original Rehabilitation Plan presents the following two options to each cedent: 1) remain in business with SRUS and be governed by the Rehabilitation Plan, or 2) recapture business ceded to SRUS. Due to SRUS’s financial status, neither option would pay 100% of the Company’s outstanding claims. The Original Rehabilitation Plan would impose certain financial terms and conditions on the cedents based on the election made, the type of business ceded, the manner in which the business is collateralized, and the amount of losses sustained by the cedent. On October 9, 2020, the Receiver filed a proposed order setting forth a schedule to present the Original Rehabilitation Plan for Court approval, which order contemplated possible modifications to the Rehabilitation Plan to be filed with the Court by March 16, 2021. The Court approved the order. On March 16, 2021, the Receiver filed a draft Amended Rehabilitation Plan (“Amended Plan”). The majority of the substance and form of the original Rehabilitation Plan, including its two-option structure described above, remained in place.

For much of 2020 and into early 2021, a group of interested parties collectively requested certain information and financial data from the Receiver that would allow them to more fully evaluate first the Original Rehabilitation Plan and then the Amended Plan. This group also had a number of conversations with counsel for the Receiver regarding concerns over the Plan. On June 30, 2022, the Receiver filed a motion seeking approval of a Modified Plan, along with a number of financial disclosure documents, including a liquidation analysis. While there are significant changes proposed in the Modified Plan (as compared to the Original Rehabilitation Plan and the Amended Plan), much of the economic substance (including not paying claims in full) of the Original/Amended Rehabilitation Plan are included in the Modified Plan.

The Court provided a framework to be followed by the Receiver to seek formal approval of the Rehabilitation Plan. This framework included filing the motion specifically seeking that relief and supporting that motion with the disclosure document containing the information that the Receiver believes is sufficient to enable parties to evaluate whether to object. In response to that document, interested parties (those with standing) may file objections and seek discovery. On October 24, 2022, a number of interested parties filed objections to the Modified Plan. After discovery, the parties will brief the issues and an evidentiary hearing on the Rehabilitation Plan will follow. A tentative timeline, beginning in August 2022, has been set, although given the inherent delays associated with the case, the tentative timeline is likely to be extended.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

As of December 31, 2022, the Company had outstanding claim reserves from SRUS of $9.1 million, including a recoverable of $6.1 million. In addition, the Company had a statutory reserve credit of $53.8 million at December 31, 2022. As of December 31, 2022, the Company accrued a loss contingency reserve of $33.8 million under SSAP No. 5R, “Liabilities, Contingencies, and Impairment of Assets” with respect to amounts receivable from SRUS for ceded claims and reserves. As of December 31, 2021, the Company had outstanding claim reserves from SRUS of $10.9 million, including a $6.8 million recoverable. In addition, the Company had a statutory reserve credit of $66.5 million at December 31, 2021. As of December 31, 2021, the Company accrued a loss contingency reserve of $55.7 million under SSAP No. 5R, “Liabilities, Contingencies, and Impairment of Assets” with respect to amounts receivable from SRUS for ceded claims and reserves. The Company continues to monitor SRUS and the actions of the receiver through discussions with legal counsel and review of publicly available information. As of December 31, 2022, management does not believe that the ultimate outcome of the rehabilitation process will have a material impact on the Company’s financial position or results of operations.

A number of judgments have been returned against insurers, broker dealers and other providers of financial services involving, among other things, sales, underwriting practices, product design, product disclosure, administration, denial or delay of benefits, benefit payment methods, charging excessive or impermissible fees, recommending unsuitable products to customers, breaching fiduciary or other duties to customers, refund or claims practices, alleged agent misconduct, failure to properly supervise representatives, relationships with agents or persons with whom the insurer does business, payment of sales and other contingent commissions, and other matters. Often these legal proceedings have resulted in the award of substantial judgments that are disproportionate to actual damages, including material amounts of punitive and non-economic compensatory damages. In some states, juries, judges, and arbitrators have substantial discretion in awarding punitive non-economic compensatory damages which creates the potential for unpredictable material adverse judgments or awards in any given legal proceeding. Arbitration awards are subject to very limited appellate review. In addition, in some legal proceedings, companies have made material settlement payments. In some instances, substantial judgments may be the result of a party’s perceived ability to satisfy such judgments as opposed to the facts and circumstances regarding the claims made.

At any given time, a number of financial, market conduct, or other examinations or audits of the Company’s subsidiaries, as well as other insurance companies from whom the Company has coinsured blocks of life insurance and annuity policies, may be ongoing. It is possible that any examination or audit may result in payments of fines and penalties, payments to customers, or both, as well as changes in systems or procedures, or restrictions on business activities, any of which could have a material adverse effect on the Company’s business, financial condition and results of operations. The Company monitors these matters for any developments that may make a loss contingency associated with any such audit or exam reasonably estimable.

The Company, like other insurance companies, in the ordinary course of business, is involved in legal proceedings. The Company cannot predict the outcome of any legal proceeding, nor can it provide an estimate of the possible loss, or range of loss, that may result from such legal proceeding. However, with respect to such legal proceedings, the Company does not expect that its ultimate liability, if any, will be material to its financial condition.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Advance Trust & Life Escrow Services, LTA, as Securities Intermediary of Life Partners Position Holder Trust v. Protective Life Insurance Company, Case No. 2:18-CV-01290, is a putative class action that was filed on August 13, 2018 in the United States District Court for the Northern District of Alabama. Plaintiffs seek to represent all owners of universal life and variable universal life policies issued or administered by PLICO or its predecessors that provide that cost of insurance rates are to be determined based on expectations of future mortality experience. Plaintiffs’ complaint alleges PLICO breached those policies by failing to periodically adjust its COI rates based on improved expectations of future mortality, and they seek class certification, compensatory damages, pre-judgment and post-judgment interest, costs, and other unspecified relief. On August 8, 2022, the US District Court granted PLICO’s Motion for Judgment on the Pleadings, concluding Protective has no contractual duty to lower COI rates if expectations as to future mortality improve. This favorable decision was appealed by the plaintiffs to the Eleventh Circuit Court of Appeals on August 26, 2022. The Company will continue to vigorously defend this matter and cannot predict the outcome of or reasonably estimate the possible loss or range of loss that might result from this litigation.

The Company is currently defending two putative class actions (Beverly Allen v. Protective Life Insurance Company, Civil Action No. 1:20-cv-00530-JLT (E.D. Cal. filed Apr. 14, 2020), and Janice Schmidt v. Protective Life Insurance Company, et al., Civil Action No. 1:21-cv-01784-SAB (E.D. Cal. filed Dec. 17, 2021) in which the plaintiffs claim that defendants’ alleged failure to comply with certain California statutes which address contractual grace periods and lapse notice requirements for certain life insurance policies requires that these policies remain in force. The plaintiffs seek unspecified monetary damages and injunctive relief. No class has been certified in either putative class action. In continuing to defend these matters, the Company maintains various defenses to the merits of the plaintiffs’ claims and to class certification. However, the Company cannot predict the outcome of or reasonably estimate the possible loss or range of loss that might result from this litigation.

The Company leases administrative and marketing office space in 6 cities, with most leases being for periods of ten to twenty-five years. Rent expense for 2022, 2021, and 2020 was $1.9 million, $2.6 million, and $3.3 million, respectively. Although the Company is legally obligated for these leases, rent expense will be less than projected lease commitments due to rent paid by affiliates.

The projected commitment under these leases for the next 5 years is as follows:

Years	($ in thousands)
2023	$	4,625
2024		4,803
2025		2,858
2026		1,283
2027		1,236
Thereafter		6,187
Total	$	20,992

Refer to Note 7 for a description of the contingent commitments and guarantees involving affiliates of the Company, and to Note 11 for commitments to extend mortgage loans.

10. Reinsurance

The Company remains liable with respect to ceded reinsurance should any reinsurer fail to meet the obligations that it assumed. The Company evaluates the financial condition of its reinsurers and monitors the associated concentration of credit risk.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Reinsurance Ceded

The Company has ceded insurance contracts with its affiliates as of and for the years ended December 31 as follows:

	2022		2021

	($ in thousands)
Life:
Insurance in-force	$	88,690,638	$	97,543,332
Policy and claim reserves ceded		6,845,313		5,687,970
Policy and claim liabilities ceded		38,661		52,756
Premiums ceded		1,549,971		116,524

Accident and health:
Policy and claim reserves ceded	$	183	$	359
Policy and claim liabilities ceded		182		276
Premiums ceded		1,448		1,033

For the year ended December 31, 2020, the Company ceded life insurance premiums of $673.1 million and accident and health premiums of $5 thousand to its affiliates

Effective October 1, 2020, GGCIC entered into separate amended and restated indemnity reinsurance agreements with the Company (the “2020 PLICO-GGCIC Agreement”) and WCL (the “2020 WCL-GGCIC Agreement”). The Company ceded to GGCIC premiums of $88.6 million, $115.5 million, and $166.9 million for the years ended December 31, 2022, 2021 and 2020, respectively, and ceded statutory reserves of $4.9 billion and $5.2 billion as of December 31, 2022 and 2021, respectively.

Effective April 1, 2020, the Company reinsured certain fixed annuity business under a coinsurance with funds withheld treaty to Protective Life Reinsurance Bermuda Ltd. (“PL Re”). PL Re, a wholly owned subsidiary of PLC, is domiciled in Bermuda and holds reserves based on Bermuda insurance regulations. The policies ceded under the agreement (the “PLICO-PL Re Reinsurance Agreement”) were in force on or before April 1, 2020. The cession to PL Re included the initial estimated transfer of $485.2 million of annuity reserves. As a result of the transaction, the Company recorded an estimated initial ceding allowance of $28.6 million and estimated initial premium transfers of $485.2 million. Pursuant to SSAP No. 61R, “Life, Deposit Type and Accident and Health Reinsurance”, and Appendix A-791, the Company recognized $6.0 million, representing 21% of the initial net gain, in net income upon the cession to PL Re. $22.6 million, or 79% of the initial net gain, was included as a component of surplus which was deferred and will be amortized into income in future periods.

On April 1, 2022, the Company amended the PLICO-PL Re Reinsurance Agreement whereby the Company reinsures certain fixed annuity business under a coinsurance with funds withheld treaty to PL Re. The cession to PL Re included the initial estimated transfer of $1.5 billion of annuity reserves. As a result of the amendment, the Company recorded an estimated initial ceding allowance of $113.0 million and estimated initial premium transfers of $1.5 billion. Pursuant to SSAP No. 61R, “Life, Deposit Type and Accident and Health Reinsurance”, and Appendix A-791, the Company recognized $23.7 million, representing 21% of the initial net gain, in net income upon the cession to PL Re. $89.3 million, or 79% of the initial net gain, was included as a component of surplus which was deferred and will be amortized into income in future periods.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

In connection with the agreement and amendment, the Company transferred assets backing economic reserves to a segregated funds withheld account owned by the Company for the benefit of PL Re. The balance in this account was $1.8 billion and $469.1 million as of December 31, 2022 and 2021, respectively. The Company ceded premiums of $1.5 billion, $38 thousand, and $487.3 million for the years ended December 31, 2022, 2021, and 2020, respectively and ceded statutory reserves of $1.9 billion and $495.6 million as of December 31, 2022 and 2021, respectively. For the years ended December 31, 2022, 2021, and 2020, $1.1 million, $0, and $11.8 million, respectively was amortized into income.

The Company has ceded insurance contracts with non-affiliated insurers as of and for the years ended December 31 as follows:

	2022		2021

	($ in thousands)
Life:
Insurance in-force	$	125,166,957	$	135,221,772
Policy and claim reserves ceded		3,164,022		3,395,548
Policy and claim liabilities ceded		170,545		192,351
Premiums ceded		1,013,650		938,134

Accident and health:
Policy and claim reserves ceded	$	11,181	$	12,880
Policy and claim liabilities ceded		52		34
Premiums ceded		699		2,083

The Company ceded to non-affiliated insurers life premiums of $912.1 million and accident and health premiums of $3.1 million during the year ended December 31, 2020.

None of the Company’s non-affiliated reinsurers were owned in excess of 10% or controlled, either directly or indirectly, by the Company or by any representative, officer, trustee, or director of the Company. Certain policies issued by the Company have been reinsured with a company chartered in a country other than the United States (excluding U.S. branches of such companies) which is owned in excess of 10% or controlled directly or indirectly by an insured, a beneficiary, a creditor of an insured, or any other person not primarily engaged in the insurance business. Numerous reinsurers relate to auto dealerships or finance companies that established reinsurance companies to supplement their primary business.

The Company does not have any reinsurance agreements in effect under which the reinsurer may unilaterally cancel any reinsurance for reasons other than for nonpayment of premium or other similar credits. The Company does not have any reinsurance agreements in effect such that the amount of losses paid or accrued through the statement date may result in a payment to the reinsurer of amounts which, in aggregate and allowing for offset of mutual credits from other reinsurance agreements with the same reinsurer, exceed the total direct premium collected under the reinsured policies.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

The Company had no aggregate reductions to surplus for terminations of reinsurance agreements during 2022, 2021, and 2020.

No new reinsurance agreements were entered into during 2022. As discussed above, the PL Re agreement was amended in 2022.

The Company did not write off any material reinsurance receivables during the three-year period ended December 31, 2022. The Company nonadmitted $49.9 million and $39.4 million of reinsurance receivables as of December 31, 2022 and 2021, respectively.

During the year ended December 31, 2022, commutation of ceded reinsurance with Transamerica Life Insurance Company had a net unfavorable $26.1 million effect on the Company’s operations in the following categories:

	($ in thousands)
Claims incurred	$	47,262
Premiums earned	$	21,186

During the year ended December 31, 2021, commutation of ceded reinsurance with RGA Reassurance Company had a favorable $13.3 million effect on the Company’s operations.

As of December 31, 2022 and 2021, the Company had the following reinsurance recoverable balances relating to paid losses included in “Amounts recoverable from reinsurers” in the Statements of Admitted Assets, Liabilities, and Capital and Surplus:

	Amount Recoverable as of December 31, 2022		% of Total			Rating

		($ in thousands)

Golden Gate Captive Insurance Company	$	59,347		47.9	%	Not rated
Swiss Re Life & Health America Inc.		17,081		13.8		A.M. Best Company A+
Scottish Re (U.S.) Inc.		6,145		5.0		Not rated
Munich American Reassurance Company		5,944		4.8		A.M. Best Company A+
RGA Reinsurance Company		5,722		4.6		A.M. Best Company A+
SCOR Global Life Americas Reinsurance Company		5,042		4.1		A.M. Best Company A+
Security Life of Denver Insurance Company		4,328		3.5		Not rated
Transamerica Life Insurance Company		4,121		3.3		A.M. Best Company A
SCOR Global Life USA Reinsurance Company		4,052		3.3		A.M. Best Company A+
All other		12,099		9.7
	$	123,881		100.0	%

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

	Amount Recoverable as of December 31, 2021		% of Total			Rating

		($ in thousands)

Golden Gate Captive Insurance Company	$	78,073		55.8	%	Not rated
Swiss Re Life & Health America Inc.		12,592		9.0		A.M. Best Company A+
Scottish Re (U.S.) Inc.		6,751		4.8		Not rated
Munich American Reassurance Company		5,520		3.9		A.M. Best Company A+
SCOR Global Life Americas Reinsurance Company		4,895		3.5		A.M. Best Company A+
RGA Reinsurance Company		4,822		3.4		A.M. Best Company A+
SCOR Global Life USA Reinsurance Company		4,742		3.4		A.M. Best Company A+
The Canada Life Assurance Company		4,022		2.9		Not rated
All other		18,506		13.3
	$	139,923		100.0	%

Reinsurance Assumed

During 2005, the Company executed a treaty with WCL to reinsure certain new annuity business. Under this agreement, the Company received $0, $68 thousand, and $0 in premiums from WCL during 2022, 2021, and 2020, respectively. The Company assumed reserves of $49.2 million and $54.4 million as of December 31, 2022 and 2021, respectively.

Effective during 2008, the Company reinsured certain term life insurance business from GGCIC, an affiliate, under a monthly renewable term treaty. The Company assumed $36.0 million in premiums for the year ended December 31, 2020. This agreement was terminated as of October 1, 2020.

Effective October 1, 2012, the Company reinsured certain universal life with secondary guarantee business from WCL, an affiliate, under a coinsurance treaty. The Company assumed $6.8 million, $11.6 million, and $26.3 million in premiums for the years ended December 31, 2022, 2021, and 2020, respectively, and assumed statutory reserves of $562.3 million and $556.9 million as of December 31, 2022 and 2021, respectively.

The Company was party to several stop loss indemnity reinsurance agreements with WCL, whereby the Company assumed from WCL any mortality risk in excess of a contractually defined threshold with respect to certain Captive-related level premium term life and universal life with secondary guarantee business. Premiums of $0.4 million were assumed under these agreements in 2020. These agreements were terminated on October 1, 2020.

The Company has assumed from its subsidiaries and affiliates as of and for the years ended December 31 as follows:

	2022		2021

	($ in thousands)
Life:
Insurance in-force	$	4,106,092	$	4,412,977
Policy and claim reserves assumed		611,594		611,245
Policy and claim liabilities assumed		10,105		14,150
Premiums ceded		6,803		11,657

The Company assumed from affiliated insurers life premiums of $62.6 million during the year ended December 31, 2020.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

The Company has assumed from non-affiliated insurers as of and for the years ended December 31 as follows:

	2022		2021

	($ in thousands)
Life:
Insurance in-force	$	132,972,941	$	180,513,376
Policy and claim reserves assumed		24,056,577		25,059,148
Policy and claim liabilities assumed		239,618		315,143
Premiums ceded		720,759		866,380

Accident and health:
Policy and claim reserves assumed	$	291,299	$	345,503
Policy and claim liabilities assumed		1,218		16,654
Premiums ceded		13,985		28,740

The Company assumed from non-affiliated insurers life premiums of $1.2 billion and accident and health premiums of $64.6 million during the year ended December 31, 2020.

11.

Information about Financial Instruments with Off-Balance Sheet Risk and Financial Instruments with Concentrations of Credit Risk

Derivative Financial Instruments

The table below summarizes the notional amount of the Company's financial instruments with off-balance sheet risk as of December 31:

	Assets				Liabilities
	2022		2021		2022		2021

	($ in thousands)

Swaps	$	225,241	$	1,716,810	$	397,297	$	2,639,619
Futures		147,683		334,673		284,547		168,896
Options		7,681,876		8,623,582		6,624,706		6,829,003
Totals	$	8,054,800	$	10,675,065	$	7,306,550	$	9,637,518

Derivative instruments expose the Company to credit and market risk. The Company minimizes its credit risk by entering into transactions with highly rated counterparties. The Company manages market risk by establishing and monitoring limits as to the types and degrees of risk that may be undertaken. The Company monitors its use of derivatives in connection with its overall asset / liability management programs and risk management strategies. In addition, all derivative programs are monitored by the Company’s risk management department.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

All derivative instruments qualifying for hedge accounting are accounted for in a manner that is consistent with the accounting for the hedged item. The hedged items are the Company’s funding agreements which are reported in accordance with Actuarial Guideline 33. The derivative entered into in conjunction with the funding agreement has a remaining cost basis of $4.4 million and accumulated foreign currency translation adjustments of $14.5 million; therefore, the derivative is reported in the Statement of Admitted Assets, Liabilities, and Capital and Surplus at an $18.9 million carrying value as of December 31, 2022. All derivative instruments used in hedging transactions that do not meet the criteria of an effective hedge are reported at fair value and are included in the Statements of Admitted Assets, Liabilities, and Capital and Surplus. The changes in the fair value of these derivatives are recognized immediately as “Change in net unrealized capital gains and losses, less capital gains tax” in unassigned funds.

The Company did not exclude any component of the hedging derivative instrument’s gain or loss from the assessment of hedge effectiveness.

During the year ended December 31, 2022, the Company recognized $109.0 million of unrealized losses related to derivatives. Of this amount, $94.5 million of unrealized losses related to derivatives that did not qualify for hedge accounting. The Company recognized $14.5 million of unrealized losses as a result of foreign currency translation adjustments for derivatives that did qualify for hedge accounting. During the year ended December 31, 2021, the Company had $259.4 million of unrealized losses related to derivatives that did not qualify for hedge accounting. During the year ended December 31, 2020, the Company had $17.8 million of unrealized gains related to derivatives that did not qualify for hedge accounting.

The following sections provide a description of the Company’s objectives for using derivatives.

Derivatives related to the management of certain risks within the Company’s funding agreement obligations

In connection with the issuance of a floating rate funding agreement, the Company entered into an interest rate swap in order to hedge the interest rate risk associated with the funding agreement. The cash flows received on the swap were identical to the cash flow variability paid on the funding agreement. This interest rate swap matured in July 2020.

Derivatives related to the management of certain risks within the Company’s fixed indexed annuity products

The Company uses equity options to manage its equity risk in its fixed indexed annuity products. The Company may purchase and sell index call and put options which have underlyings based upon several equity indexes. As of December 31, 2022 and 2021, the Company had paid a net amount of $101.5 million and $109.1 million, respectively, for its open call options.

The Company uses US equity index futures and volatility futures transactions. These positions are traded on recognized exchanges, and they require the posting of margin through the broker. Because the counterparties also are required to post margin, these positions do not contain significant counterparty credit risk.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Derivatives related to the management of certain risks within the Company’s indexed universal life products

The Company uses equity options to manage its equity risk in its indexed universal life products. The Company may purchase and sell index call options which have underlyings based upon several equity indexes. As of December 31, 2022 and 2021, the Company had paid a net amount of $21.3 million and $18.0 million, respectively, for its open call options.

The Company uses US equity index futures transactions. These positions are traded on recognized exchanges, and they require the posting of margin through the broker. Because the counterparties also are required to post margin, these positions do not contain significant counterparty credit risk.

Derivatives related to the management of certain risks within the Company’s variable annuity products

The Company uses a combination of derivative instruments to mitigate volatility, interest rate, credit, and equity risk related to certain guaranteed minimum benefits, including GLWBs, within the Company’s variable annuity products.

The Company uses interest rate futures, US and foreign equity market index futures, and foreign currency futures transactions. These positions are traded on recognized exchanges, and they require the posting of margin through the broker. Because the counterparties also are required to post margin, these positions do not contain significant counterparty credit risk.

The Company used forward swaps and interest rate swaps, whereby the Company primarily paid a floating rate of interest based upon a 3-month LIBOR rate, while it received a fixed rate. As of December 31, 2022, the Company held no forward swaps or interest rate swaps. The Company also uses total return swaps, where the Company primarily makes payments based on the return of the underlying equity index, while it receives a floating rate of interest based upon either the 3-month LIBOR rate or the federal funds rate, both adjusted by stated basis points. Certain positions may be cleared through a central clearing house and require the posting of margin through the clearing member. The Company also uses interest rate forwards, where primarily it agrees to purchase a treasury bond on a future date at a predetermined price.

The Company uses index put options which have underlyings based upon several equity indexes, both US and foreign. As of December 31, 2022 and 2021, the cost of the open options was $123.0 million and $196.9 million, respectively.

Derivatives related to the management of certain risks within the Company’s structured annuity products

The Company uses equity options to manage its equity risk in its structured annuity products. The Company may purchase and sell index options which have underlyings based upon several equity indexes. As of December 31, 2022 and 2021, the cost of the open options was $6.4 million and $4.7 million, respectively.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

The Company also entered into a total return swap, where the Company makes payments based on the return of certain hedges associated with certain structured annuity products, while it receives a floating rate of interest based upon the 1-month LIBOR rate.

As of December 31, 2022, the Company had posted cash and securities (at fair value) for its derivatives as collateral of $60.3 million and $81.4 million, respectively. Of this amount, $13.1 million and $40.5 million of cash and securities, respectively, posted as collateral related to futures, and $47.2 million and $40.9 million of cash and securities, respectively, posted as collateral related to options and non-cleared swaps.

As of December 31, 2021, the Company had posted cash and securities (at fair value) for its derivatives as collateral of $182.7 million and $85.5 million, respectively. Of this amount, $3.0 million and $29.6 million of cash and securities, respectively, posted as collateral related to futures, $151.1 million and $45.7 million of cash and securities, respectively, posted as collateral related to cleared swaps, and $28.6 million and $10.2 million of cash and securities, respectively, posted as collateral related to options and non-cleared swaps.

Collateral received may include both cash and non-cash collateral. Cash collateral received by the Company is reported in “Derivative collateral and receivables” in the Statements of Admitted Assets, Liabilities, and Capital and Surplus, with a corresponding amount recorded “Derivative collateral and payables” representing the Company’s obligation to return the collateral. Non-cash collateral received by the Company is not recognized in the Statements of Admitted Assets, Liabilities, and Capital and Surplus unless the Company exercises its right to sell or re-pledge the underlying asset. As of December 31, 2022, the Company received $62.2 million of cash as collateral, all of which related to options and non-cleared swaps. As of December 31, 2022, the fair value of non-cash collateral received was $10.9 million, which related to non-cleared swaps. As of December 31, 2021, the Company received $187.5 million of cash as collateral. Of this amount $1.6 million of cash received as collateral related to futures, $10.3 million of cash received as collateral related to cleared swaps, and $175.6 million of cash received as collateral related to options and non-cleared swaps. As of December 31, 2021, the Company had not received any non-cash collateral.

The Company is exposed to credit-related losses in the event of nonperformance by counterparties to financial instruments, but it does not expect any counterparties to fail to meet their obligations given their high credit ratings. The credit exposure of swaps and over-the-counter options is represented by the fair value of contracts with a positive fair value at the reporting date. As of December 31, 2022, the Company had received $62.2 million of cash pledged as collateral and non-cash collateral with a fair value of $10.9 million. As of December 31, 2021, the Company had received $187.5 million of cash pledged as collateral. Because exchange-traded futures and options are effected through a regulated exchange and positions are marked to market on a daily basis, the Company has little exposure to credit-related losses in the event of nonperformance by counterparties to such financial instruments

The current credit exposure of the Company’s derivative contracts is limited to the fair value at the reporting date. Credit risk is managed by entering into transactions with creditworthy counterparties. The Company also attempts to minimize its exposure to credit risk through the use of multiple highly-rated counterparties.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Other Off-Balance Sheet Financial Instruments

The table below presents a summary of the contractual amounts of off-balance sheet financial instruments, other than derivative financial instruments, as of December 31:

	2022		2021

	($ in thousands)
Commitments to extend mortgage loans	$	917,633	$	967,038

Commitments to extend mortgage loans are agreements to lend to a borrower, provided there is no violation of any condition established in the contract. The Company enters into these agreements to commit to future loan fundings at a predetermined interest rate. Commitments generally have fixed expiration dates or other termination clauses.

For commitments to extend mortgage loans, the amounts presented above do not represent amounts at risk if the counterparty defaults.

The collateral held for commitments to extend mortgage loans is a cash commitment fee, which is forfeited if the counterparty fails to perform.

12.

Borrowed Money

Under a revolving line of credit arrangement (the “2018 Credit Facility”), the Company and PLC had the ability to borrow on an unsecured basis up to an aggregate principal amount of $1.0 billion. Under certain circumstances the 2018 Credit Facility allowed for a request that the commitment be increased up to a maximum principal amount of $1.5 billion.

On April 5, 2022, the Company amended and restated the 2018 Credit Facility and entered into a Second Amended and Restated Credit Agreement (the “2022 Credit Facility”) among PLC, the Company, the several lenders from time to time party thereto, and Regions Bank, as administrative agent and swingline lender. Under the 2022 Credit Facility, the Company and PLC has the ability to borrow on an unsecured basis up to an aggregated principal amount of $1.5 billion. The Company and PLC also has the right in certain circumstances to request that the commitment under the 2022 Credit Facility be increased up to a maximum principal amount of $2.0 billion. Balances outstanding under the 2022 Credit Facility accrue interest at a rate equal to, at the option of PLC and the Company, (i) Adjusted Term SOFR Rate plus a spread based on the ratings of PLC’s Senior Debt, or (ii) the sum of (A) a rate equal to the highest of (x) the Administrative Agent’s Prime Rate, (y) 0.50% above the Federal Funds Rate, or (z) the one-month Adjusted Term SOFR Rate plus 1.00% and (B) a spread based on the ratings of the PLC’s Senior Debt subject to adjustments based upon the achievement of certain environmental, social and governance metrics (“ESG Metrics”) by PLC, the Company and their subsidiaries. The 2022 Credit Facility also provides for a facility fee at a rate that varies with the ratings of the PLC’s Senior Debt, subject to adjustments based upon the achievement of certain ESG Metrics by PLC, the Company and their subsidiaries. The facility fee is calculated based on the aggregate amount of commitments under the 2022 Credit Facility, whether used or unused. The maturity date of current borrowings under the 2022 Credit Facility is April 5, 2027, subject to certain extension options available to the Company. The Company is not aware of any non-compliance with the financial debt covenants of the 2022 Credit Facility as of December 31, 2022. The Company did not have an outstanding balance under the 2022 Credit Facility as of December 31, 2022. PLC had no outstanding balance as of December 31, 2022. The Company did not have an outstanding balance under the Credit Facility as of December 31, 2021. PLC had an outstanding balance of $275.0 million bearing interest at a rate of LIBOR plus 1.00% as of December 31, 2021.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Please refer to the Note 5 section “Repurchase Agreements and Securities Lending Transactions” for information regarding the Company’s repurchase agreements and the Note 7 section “Intercompany Agreements and Settlements” for a discussion of the Company’s intercompany loan agreements.

13.

Change in Incurred Losses and Loss Adjustment Expenses

Activity in the liability for accident and health policy and contract claims is summarized as follows:

	2022			2021
	($ in thousands)

Balance at January 1	$	257,725		$	282,740
Less reinsurance recoverables		—			—
Net balance at January 1		257,725			282,740
Incurred:
Related to current year		69,246			53,577
Related to prior years		(1,725	)		(19,821	)
Total incurred		67,521			33,756
Paid:
Related to current year		18,350			19,075
Related to prior years		34,522			39,696
Total paid		52,872			58,771
Net balance at December 31		272,374			257,725
Plus reinsurance recoverables		—			—
Balance at December 31	$	272,374		$	257,725

Reserves and liabilities as of January 1, 2022, were $257.7 million. As of December 31, 2022, $34.5 million had been paid for incurred claims attributable to insured events of prior years. Reserves remaining for prior years at December 31, 2022, were $221.5 million as a result of re-estimation of unpaid claims and claim adjustment expenses, principally on acquired business, as well as cancer and credit lines of insurance. Therefore, there has been a $1.7 million favorable development from January 1, 2022 to December 31, 2022. Reserves and liabilities as of January 1, 2021, were $282.7 million. As of December 31, 2021, $39.7 million had been paid for incurred claims attributable to insured events of prior years. Reserves remaining for prior years at December 31, 2021, were $223.2 million as a result of re-estimation of unpaid claims and claim adjustment expenses, principally on acquired business, as well as cancer and credit lines of insurance. Therefore, there was a $19.8 million favorable development from January 1, 2021 to December 31, 2021. Original estimates are increased or decreased as additional information becomes known regarding individual claims. No additional premiums or return premiums have been accrued as a result of the prior year effects.

There have been no significant changes in methodologies or assumptions used in calculating the liability for unpaid losses.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

14.

Participating Policies

Direct and assumed premiums under individual life participating policies were $50.6 million and 1.2%, $54.2 million and 1.5%, and $55.9 million and 2.0% for the years ended December 31, 2022, 2021, and 2020, respectively, of total direct and assumed individual life premium earned. The Company accrues dividends when declared by the Board of Directors in “Policyholders’ dividends”. Dividends to policyholders were $18.9 million, $29.5 million, and $29.6 million for the years ended December 31, 2022, 2021, and 2020, respectively. The Company has not allocated any additional income to participating policyholders.

15.

Analysis of Annuity Actuarial Reserves and Deposit Liabilities by Withdrawal Characteristics

Withdrawal characteristics of annuity actuarial reserves and deposit-type contract liabilities as of December 31, 2022 are as follows:

Individual Annuities:

	General Account		Separate Account with Guarantees		Separate Account Non- guaranteed		Total		% of Total
	($ in thousands)
(1) Subject to discretionary withdrawals
a. With market value adjustments	$	6,606,182	$	433,845	$	—	$	7,040,027		25.1	%
b. At book value less current surrender charge of 5% or more		360,459		—		—		360,459		1.3
c. At fair value		—		—		10,708,787		10,708,787		38.1
d. Total with market value adjustment or at fair value (total of a through c)		6,966,641		433,845		10,708,787		18,109,273		64.5
e. At book value without adjustment (minimal or no charge or adj.)		5,448,642		7,048		—		5,455,690		19.4
(2) Not subject to discretionary withdrawal provision		4,508,828		—		7,252		4,516,080		16.1
(3) Total (gross: direct + assumed)		16,924,111		440,893		10,716,039		28,081,043		100.0	%
(4) Reinsurance ceded		2,632,151		—		—		2,632,151
(5) Total (net) (3) - (4)	$	14,291,960	$	440,893	$	10,716,039	$	25,448,892
(6) Amount included in (1)b above that will move to (1)e in the year after the statement date	$	245,475	$	—	$	—	$	245,475

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Group Annuities:

	General Account		Separate Account with Guarantees		Separate Account Non- guaranteed		Total		% of Total
	($ in thousands)
(1) Subject to discretionary withdrawals
a. With market value adjustments	$	4,999	$	546,994	$	—	$	551,993		63.9	%
b. At book value less current surrender charge of 5% or more		—		—		—		—		—
c. At fair value		—		—		—		—		—
d. Total with market value adjustment or at fair value (total of a through c)		4,999		546,994		—		551,993		63.9
e. At book value without adjustment (minimal or no charge or adj.)		40,425		16,294		—		56,719		6.6
(2) Not subject to discretionary withdrawal provision		254,941		—		—		254,941		29.5
(3) Total (gross: direct + assumed)		300,365		563,288		—		863,653		100.0	%
(4) Reinsurance ceded		1,418		—		—		1,418
(5) Total (net) (3) - (4)	$	298,947	$	563,288	$	—	$	862,235
(6) Amount included in (1)b above that will move to (1)e in the year after the statement date	$	—	$	—	$	—	$	—

Deposit-type Contracts (no life contingencies):

	General Account		Separate Account with Guarantees		Separate Account Non- guaranteed		Total		% of Total
	($ in thousands)
(1) Subject to discretionary withdrawals
a. With market value adjustments	$	322,581	$	—	$	—	$	322,581		2.7	%
b. At book value less current surrender charge of 5% or more		143,056		—		—		143,056		1.2
c. At fair value		—		—		—		—		—
d. Total with market value adjustment or at fair value (total of a through c)		465,637		—		—		465,637		3.9
e. At book value without adjustment (minimal or no charge or adj.)		758,380		—		—		758,380		6.4
(2) Not subject to discretionary withdrawal provision		10,684,092		—		1,518		10,685,610		89.7
(3) Total (gross: direct + assumed)		11,908,109		—		1,518		11,909,627		100.0	%
(4) Reinsurance ceded		2,058		—		—		2,058
(5) Total (net) (3) - (4)	$	11,906,051	$	—	$	1,518	$	11,907,569
(6) Amount included in (1)b above that will move to (1)e in the year after the statement date	$	4,031	$	—	$	—	$	4,031

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Reconciliation of Total Annuity Actuarial Reserves and Deposit Fund Liabilities:

Life & Accident & Health Annual Statement:	($ in thousands)
Exhibit 5, Annuities Section, Total (net)	$	14,467,892
Exhibit 5, Supplementary Contracts with Life Contingencies Section, Total (net)		123,016
Exhibit 7, Deposit-Type Contracts, Line 14, column 1		11,906,051
Subtotal		26,496,959
Separate Accounts Annual Statement:
Exhibit 3, Line 0299999, Column 2		11,721,737
Subtotal		11,721,737
Combined Total	$	38,218,696

Withdrawal characteristics of annuity actuarial reserves and deposit-type contract liabilities as of December 31, 2021 are as follows:

Individual Annuities:

	General Account		Separate Account with Guarantees		Separate Account Non- guaranteed		Total		% of Total
	($ in thousands)
(1) Subject to discretionary withdrawals
a. With market value adjustments	$	6,196,289	$	397,072	$	—	$	6,593,361		21.3	%
b. At book value less current surrender charge of 5% or more		762,836		—		—		762,836		2.5
c. At fair value		—		—		13,184,862		13,184,862		42.6
d. Total with market value adjustment or at fair value (total of a through c)		6,959,125		397,072		13,184,862		20,541,059		66.4
e. At book value without adjustment (minimal or no charge or adj.)		5,698,184		6,958		—		5,705,142		18.4
(2) Not subject to discretionary withdrawal provision		4,704,188		—		8,953		4,713,141		15.2
(3) Total (gross: direct + assumed)		17,361,497		404,030		13,193,815		30,959,342		100.0	%
(4) Reinsurance ceded		959,935		—		—		959,935
(5) Total (net) (3) - (4)	$	16,401,562	$	404,030	$	13,193,815	$	29,999,407
(6) Amount included in (1)b above that will move to (1)e in the year after the statement date	$	625,743	$	—	$	—	$	625,743

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Group Annuities:

	General Account		Separate Account with Guarantees		Separate Account Non- guaranteed		Total		% of Total
	($ in thousands)
(1) Subject to discretionary withdrawals
a. With market value adjustments	$	5,527	$	613,003	$	—	$	618,530		64.9	%
b. At book value less current surrender charge of 5% or more		—		—		—		—		—
c. At fair value		—		—		—		—		—
d. Total with market value adjustment or at fair value (total of a through c)		5,527		613,003		—		618,530		64.9
e. At book value without adjustment (minimal or no charge or adj.)		43,481		17,207		—		60,688		6.3
(2) Not subject to discretionary withdrawal provision		274,343		—		—		274,343		28.8
(3) Total (gross: direct + assumed)		323,351		630,210		—		953,561		100.0	%
(4) Reinsurance ceded		1,397		—		—		1,397
(5) Total (net) (3) - (4)	$	321,954	$	630,210	$	—	$	952,164
(6) Amount included in (1)b above that will move to (1)e in the year after the statement date	$	—	$	—	$	—	$	—

Deposit-type Contracts (no life contingencies):

	General Account		Separate Account with Guarantees		Separate Account Non- guaranteed		Total		% of Total
	($ in thousands)
(1) Subject to discretionary withdrawals
a. With market value adjustments	$	249,326	$	—	$	—	$	249,326		2.4	%
b. At book value less current surrender charge of 5% or more		167,909		—		—		167,909		1.6
c. At fair value		—		—		—		—		—
d. Total with market value adjustment or at fair value (total of a through c)		417,235		—		—		417,235		4.0
e. At book value without adjustment (minimal or no charge or adj.)		725,559		—		—		725,559		7.0
(2) Not subject to discretionary withdrawal provision		9,232,476		—		1,742		9,234,218		89.0
(3) Total (gross: direct + assumed)		10,375,270		—		1,742		10,377,012		100.0	%
(4) Reinsurance ceded		1,936		—		—		1,936
(5) Total (net) (3) - (4)	$	10,373,334	$	—	$	1,742	$	10,375,076
(6) Amount included in (1)b above that will move to (1)e in the year after the statement date	$	6,761	$	—	$	—	$	6,761

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Reconciliation of Total Annuity Actuarial Reserves and Deposit Fund Liabilities:

Life & Accident & Health Annual Statement:	($ in thousands)
Exhibit 5, Annuities Section, Total (net)	$	16,591,600
Exhibit 5, Supplementary Contracts with Life Contingencies Section, Total (net)		131,916
Exhibit 7, Deposit-Type Contracts, Line 14, column 1		10,373,334
Subtotal		27,096,850
Separate Accounts Annual Statement:
Exhibit 3, Line 0299999, Column 2		14,229,797
Subtotal		14,229,797
Combined total	$	41,326,647

16. Analysis of Life Actuarial Reserves by Withdrawal Characteristics

Withdrawal characteristics of the Company’s life actuarial reserves as of December 31, 2022, are as follows:

General Account

	Account Value		Cash Value		Reserve
	($ in thousands)
Subject to discretionary withdrawal, surrender values, or policy loans:
Term Policies with Cash Value	$	—	$	46,081	$	497,313
Universal Life		14,876,652		15,441,221		15,872,700
Universal Life with Secondary Guarantees		1,981,849		1,621,794		6,903,469
Indexed Universal Life		532,850		326,040		442,711
Other Permanent Cash Value Life Insurance		—		2,896,432		3,109,881
Variable Universal Life		633,535		663,550		694,114

Not subject to discretionary withdrawal or no cash values
Term Policies without cash value		XXX		XXX		4,615,099
Accidental Death Benefits		XXX		XXX		4,975
Disability - Active Lives		XXX		XXX		43,421
Disability - Disabled Lives		XXX		XXX		181,657
Miscellaneous Reserves		XXX		XXX		168,594
Total (Gross: direct + assumed)		18,024,886		20,995,118		32,533,934
Reinsurance Ceded		406,145		377,402		7,373,709
Total (net)	$	17,618,741	$	20,617,716	$	25,160,225

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Separate Account with Guarantees

	Account Value		Cash Value		Reserve
	($ in thousands)
Subject to discretionary withdrawal, surrender values, or policy loans:
Universal Life	$	15,387	$	15,387	$	15,387
Total (Gross: direct + assumed)		15,387		15,387		15,387
Reinsurance Ceded		—		—		—
Total (net)	$	15,387	$	15,387	$	15,387

Separate Account Nonguaranteed

	Account Value		Cash Value		Reserve
	($ in thousands)
Subject to discretionary withdrawal, surrender values, or policy loans:
Variable Universal Life	$	2,469,442	$	2,365,038	$	2,353,557
Total (Gross: direct + assumed)		2,469,442		2,365,038		2,353,557
Reinsurance Ceded		—		—		—
Total (net)	$	2,469,442	$	2,365,038	$	2,353,557

Reconciliation of Total Life Reserves

Life & Accident & Health Annual Statement:	($ in thousands)
Exhibit 5, Life Insurance Section, Total (net)	$	24,800,573
Exhibit 5, Accidental Death Benefits Section, Total (net)		4,289
Exhibit 5, Disability - Active Lives Section, Total (net)		41,149
Exhibit 5, Disability - Disabled Lives Section, Total (net)		168,244
Exhibit 5, Miscellaneous Reserves Section Total (net)		145,970
Subtotal		25,160,225
Separate Accounts Annual Statement:
Exhibit 3, Line 0199999, Column 2		2,368,944
Subtotal		2,368,944
Combined total	$	27,529,169

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Withdrawal characteristics of the Company’s life actuarial reserves as of December 31, 2021, are as follows:

General Account

	Account Value		Cash Value		Reserve
	($ in thousands)
Subject to discretionary withdrawal, surrender values, or policy loans:
Term Policies with Cash Value	$	—	$	42,707	$	486,764
Universal Life		14,494,443		14,984,033		15,408,247
Universal Life with Secondary Guarantees		2,081,396		1,636,976		6,582,203
Indexed Universal Life		466,948		292,557		408,519
Other Permanent Cash Value Life Insurance		—		2,877,581		3,091,864
Variable Universal Life		467,769		473,837		500,499

Not subject to discretionary withdrawal or no cash values
Term Policies without cash value		XXX		XXX		5,403,159
Accidental Death Benefits		XXX		XXX		5,261
Disability - Active Lives		XXX		XXX		46,678
Disability - Disabled Lives		XXX		XXX		190,032
Miscellaneous Reserves		XXX		XXX		164,572
Total (Gross: direct + assumed)		17,510,556		20,307,691		32,287,798
Reinsurance Ceded		441,998		388,763		8,120,248
Total (net)	$	17,068,558	$	19,918,928	$	24,167,550

Separate Account with Guarantees

	Account Value		Cash Value		Reserve
	($ in thousands)
Subject to discretionary withdrawal, surrender values, or policy loans:
Universal Life	$	3,684	$	3,684	$	3,684
Total (Gross: direct + assumed)		3,684		3,684		3,684
Reinsurance Ceded		—		—		—
Total (net)	$	3,684	$	3,684	$	3,684

Separate Account Nonguaranteed

	Account Value		Cash Value		Reserve
	($ in thousands)
Subject to discretionary withdrawal, surrender values, or policy loans:
Variable Universal Life	$	1,974,438	$	1,896,321	$	1,883,507
Total (Gross: direct + assumed)		1,974,438		1,896,321		1,883,507
Reinsurance Ceded		—		—		—
Total (net)	$	1,974,438	$	1,896,321	$	1,883,507

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Reconciliation of Total Life Reserves

Life & Accident & Health Annual Statement:	($ in thousands)
Exhibit 5, Life Insurance Section, Total (net)	$	23,803,473
Exhibit 5, Accidental Death Benefits Section, Total (net)		4,554
Exhibit 5, Disability - Active Lives Section, Total (net)		43,977
Exhibit 5, Disability - Disabled Lives Section, Total (net)		175,954
Exhibit 5, Miscellaneous Reserves Section Total (net)		139,592
Subtotal		24,167,550
Separate Accounts Annual Statement:
Exhibit 3, Line 0199999, Column 2		1,887,191
Subtotal		1,887,191
Combined total	$	26,054,741

17. Premiums Deferred and Uncollected

Life insurance premiums deferred and uncollected represent annual or fractional premiums, either due and uncollected or not yet due, where policy reserves have been provided on the assumption that the full premium for the current policy year has been collected.

Deferred and uncollected life insurance premiums, net of reinsurance, as of December 31 were as follows:

2022
Type	Gross			Net of Loading
	($ in thousands)
Industrial	$	10		$	6
Ordinary new business		78			48
Ordinary renewal		7,749			3,350
Group Life		(2,687	)		(2,595	)
Totals	$	5,150		$	809

2021
Type	Gross			Net of Loading
	($ in thousands)
Industrial	$	10		$	6
Ordinary new business		48			35
Ordinary renewal		(30,403	)		(34,780	)
Group Life		(2,881	)		(2,818	)
Totals	$	(33,226	)	$	(37,557	)

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

18.

Separate Accounts

The Company utilizes Separate Accounts to record and account for assets and liabilities for particular lines of business. For the current reporting year, the Company reported assets and liabilities from the following product lines into a Separate Account:

	•	Market value adjusted annuities
	•	Variable annuities
	•	Variable life contracts
	•	BOLI fixed universal life contracts

Separate Accounts held by the Company are for market value adjusted annuities and individual and group variable annuity and life contracts. The Separate Account for market value adjusted annuities provides the opportunity for the policyholder to invest in one or any combination of interest rate guarantee periods. The assets for this account are carried at fair value and are held in a non-unitized Separate Account. Amounts withdrawn from the contract in excess of the free withdrawal amount are subject to market value adjustment, which can be positive or negative. The market value adjusted annuity business has been included in the “Non-indexed Guarantee more than 4%” and the “Non-indexed Guarantee less than 4%” columns of the table disclosing information regarding the Company’s Separate Account as shown later in Note 18.

The Separate Accounts for the individual and group variable business invest in shares of various mutual funds with external investment advisors. The net investment experience of the Separate Account is credited directly to the policyholder and can be positive or negative. The individual and group variable business has been included in the “Nonguaranteed Separate Accounts” column of the table disclosing information regarding the Company’s Separate Accounts as shown later in Note 18.

Some of the variable annuity contracts contain GMDB, GMIB, and GLWB features, which are described in Note 1.

The Separate Accounts for the structured annuity business invest in funds tied to various market indices. The annual year-over-year return is credited directly to the policyholder and can be positive or negative subject to contractual floors and caps. The structured annuity business has been included in the “Indexed” column in the table later in Note 18.

These products are included within the Separate Accounts pursuant to Tennessee Code Section 56-3-501.

In accordance with the products recorded within the Separate Account, the Separate Account assets are considered legally insulated from the General Account, except for market value adjusted annuities. As of December 31, 2022 and 2021, the Company’s Separate Account included legally insulated assets of $13.3 billion and $15.3 billion, respectively. As of December 31, 2022 and 2021, the Company’s Separate Account statement included not legally insulated assets of $0.8 billion and $1.1 billion, respectively. The Separate Account assets as of December 31 are attributed to the following products:

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

2022
Product	Legally Insulated Assets		Separate Account Assets (Not Legally Insulated)
	($ in thousands)
Variable annuities	$	10,813,155	$	—
Variable life contracts		2,474,038		—
Market value adjusted annuities		—		808,132
BOLI fixed universal life		16,317		—
Total	$	13,303,510	$	808,132

2021
Product	Legally Insulated Assets		Separate Account Assets (Not Legally Insulated)
	($ in thousands)
Variable annuities	$	13,294,478	$	—
Variable life contracts		1,984,116		—
Market value adjusted annuities		—		1,103,784
BOLI fixed universal life		3,565		—
Total	$	15,282,159	$	1,103,784

In accordance with the products recorded within the Separate Account, some Separate Account liabilities are guaranteed by the General Account. To compensate the General Account for the risk taken, the Separate Account paid risk charges of $231.2 million in 2022, $244.6 million in 2021, $230.2 million in 2020, $244.5 million in 2019, and $260.2 million in 2018.

For the year ended December 31, 2022, $9.2 million was paid by the General Account toward Separate Account guarantees. The total Separate Account guarantees paid by the General Account for the preceding four years ended December 31, 2021, 2020, 2019, and 2018, were $4.4 million, $4.5 million, $3.2 million, and $2.8 million, respectively.

The Company did not have securities lending transactions within the Separate Accounts during either 2022, 2021 or 2020.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Information regarding the Company's Separate Accounts is as follows:

2022

	Indexed		Nonindexed Guarantee Less Than 4%		Nonindexed Guarantee More Than 4%		Nonguaranteed Separate Account		Total
	($ in thousands)
(1) Premiums, consideration or deposits for the year ended 12/31/2022	$	80,800	$	5	$	11	$	1,345,508	$	1,426,324
Reserves at 12/31/2022
(2) For accounts with assets at:
(a) Fair value	$	202,305	$	191,197	$	610,679	$	13,086,501	$	14,090,682
(b) Amortized cost		—		—		—		—		—
(c) Total reserves	$	202,305	$	191,197	$	610,679	$	13,086,501	$	14,090,682
(3) By withdrawal characteristics:
(a) Subject to discretionary withdrawal:
1. With market value adjustment	$	202,305	$	191,197	$	610,679	$	—	$	1,004,181
2. At book value without market value adjustment and with current surrender charge of 5% or more		—		—		—		—		—
3. At fair value		—		—		—		13,086,501		13,086,501
4. At book value without market value adjustment and with current surrender charge less than 5%		—		—		—		—		—
5. Subtotal		202,305		191,197		610,679		13,086,501		14,090,682
(b) Not subject to discretionary withdrawal		—		—		—		—		—
(c) Total	$	202,305	$	191,197	$	610,679	$	13,086,501	$	14,090,682

(4) Reserves for Asset Default Risk in Lieu of AVR	$	—	$	—	$	—	$	—	$	—

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

2021

	Indexed		Nonindexed Guarantee Less Than 4%		Nonindexed Guarantee More Than 4%		Nonguaranteed Separate Account		Total
	($ in thousands)
(1) Premiums, consideration or deposits for the year ended 12/31/2021	$	96,875	$	614	$	777	$	1,396,240	$	1,494,506
Reserves at 12/31/2021
(2) For accounts with assets at:
(a) Fair value	$	138,594	$	230,665	$	664,980	$	15,082,749	$	16,116,988
(b) Amortized cost		—		—		—		—		—
(c) Total reserves	$	138,594	$	230,665	$	664,980	$	15,082,749	$	16,116,988
(3) By withdrawal characteristics:
(a) Subject to discretionary withdrawal:
1. With market value adjustment	$	138,594	$	230,665	$	664,981	$	—	$	1,034,240
2. At book value without market value adjustment and with current surrender charge of 5% or more		—		—		—		—		—
3. At fair value		—		—		—		15,082,749		15,082,749
4. At book value without market value adjustment and with current surrender charge less than 5%		—		—		—		—		—
5. Subtotal		138,594		230,665		664,981		15,082,749		16,116,989
(b) Not subject to discretionary withdrawal		—		—		—		—		—
(c) Total	$	138,594	$	230,665	$	664,981	$	15,082,749	$	16,116,989

(4) Reserves for Asset Default Risk in Lieu of AVR	$	—	$	—	$	—	$	—	$	—

2020
	Indexed		Nonindexed Guarantee Less Than 4%		Nonindexed Guarantee More Than 4%		Nonguaranteed Separate Account		Total
	($ in thousands)
Premiums, consideration or deposits for the year ended 12/31/2020	$	24,711	$	3,008	$	5	$	275,158	$	302,882

A reconciliation of net transfers to (from) Separate Accounts is as follows:

	2022			2021			2020
	($ in thousands)
Transfers as reported in the Summary of Operations of the Separate Accounts Statement:
Transfers to Separate Accounts	$	1,434,970		$	1,504,853		$	311,895
Less: Transfers from Separate Accounts		1,132,706			1,217,637			1,175,648
Net transfers to/(from) Separate Accounts		302,264			2,722,490			1,487,543
Reconciling adjustments:
Transfers ceded/assumed under Modco Agreements		(454,087	)		(315,050	)		(67,442	)
Transfers as reported in the Statements of Operations	$	(151,823	)	$	2,407,440		$	1,420,101

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

19.

Fair Value Measurements

The Company determines the fair value of its financial instruments in accordance with SSAP No. 100R, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about assets and liabilities measured at fair value. The definition of fair value in SSAP No. 100R focuses on an “exit price”, the price that would be received to sell the asset or paid to transfer the liability. Included in various line items in the statutory financial statements are certain financial instruments carried at fair value. Other financial instruments are periodically measured at fair value, such as when impaired, or, for certain bonds and preferred stocks, when carried at the lower of cost or fair value.

The Company's financial assets and liabilities carried at fair value have been classified, for disclosure purposes, based on a hierarchy defined by SSAP No. 100R. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. The hierarchy is defined as follows:

Level 1: Unadjusted quoted prices for identical assets or liabilities in an active market.

Level 2: Quoted prices in markets that are not active or significant inputs that are observable either directly or indirectly. Level 2 inputs include the following:

	(a)	Quoted prices for similar assets or liabilities in active markets,
	(b)	Quoted prices for identical or similar assets or liabilities in non-active markets,
	(c)	Inputs other than quoted market prices that are observable, and
	(d)	Inputs that are derived principally from or corroborated by observable market data through correlation or other means.

Level 3: Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.

The following table provides information as of December 31 about the Company’s financial assets (other than derivative instruments) measured at fair value:

2022
Description	Level 1		Level 2		Level 3		Net Asset Value (NAV)		Total
	($ in thousands)
Assets at fair value
Perpetual preferred stocks
Industrial and miscellaneous	$	259,475	$	35,572	$	5,940	$	—	$	300,987
Total perpetual preferred stocks		259,475		35,572		5,940		—		300,987

Common stocks
Industrial and miscellaneous		2,028		—		172,515		—		174,543
Total common stocks		2,028		—		172,515		—		174,543
Separate Accounts		13,304,618		701,357		89,350		—		14,095,325
Total assets at fair value	$	13,566,121	$	736,929	$	267,805	$	—	$	14,570,855

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

2021
Description	Level 1		Level 2		Level 3		Net Asset Value (NAV)		Total
	($ in thousands)
Assets at fair value
Bonds
Residential mortgage-backed securities	$	—	$	481	$	—	$	—	$	481
Total bonds		—		481		—		—		481

Perpetual preferred stocks
Industrial and miscellaneous		419,774		40,096		6,240		—		466,110
Total perpetual preferred stocks		419,774		40,096		6,240		—		466,110

Common stocks
Industrial and miscellaneous		3,083		—		143,485		—		146,568
Total common stocks		3,083		—		143,485		—		146,568
Separate Accounts		15,306,095		868,093		208,190		—		16,382,378
Total assets at fair value	$	15,728,952	$	908,670	$	357,915	$	—	$	16,995,537

The following is the Level 3 reconciliation of the beginning balance to the ending balance:

2022
Description	Beginning Balance at 1/1/2022		Transfers into Level 3		Transfers out of Level 3			Total gains and (losses) included in Net Income			Total gains and (losses) included in Surplus			Purchases		Issuances		Sales			Settlements		Ending Balance at 12/31/2022
	($ in thousands)
Assets:
Separate Account mortgage loans	$	155,597	$	—	$	—		$	(15,100	)	$	—		$	—	$	—	$	(64,084	)	$	—	$	76,413
Separate Account bonds		52,593		—		(26,420	)		(2,278	)*		—			—		—		(10,958	)		—		12,937
Common stocks - FHLB		143,475		—		—			—			—			36,405		—		(7,380	)		—		172,500
Common stocks - other		10		—		—			—			5			—		—		—			—		15
Perpetual preferred stock		6,240		—		—			—			(300	)		—		—		—			—		5,940
Total assets	$	357,915	$	—	$	(26,420	)	$	(17,378	)	$	(295	)	$	36,405	$	—	$	(82,422	)	$	—	$	267,805

*Transferred out of Level 3 into Level 2 due to a change in price source.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

2021
Description	Beginning Balance at 1/1/2021		Transfers into Level 3		Transfers out of Level 3		Total gains and (losses) included in Net Income			Total gains and (losses) included in Surplus			Purchases		Issuances		Sales			Settlements		Ending Balance at 12/31/2021
	($ in thousands)
Assets:
Separate Account mortgage loans	$	206,229	$	—	$	—	$	(6,882	)	$	—		$	12,322	$	—	$	(56,072	)	$	—	$	155,597
Separate Account bonds		19,299		—		—		(417	)		—			38,500		—		(4,789	)		—		52,593
Common stocks - FHLB		83,000		—		—		—			—			90,038		—		(29,563	)		—		143,475
Common stocks - other		3		—		—		—			7			—		—		—			—		10
Perpetual preferred stock *		6,270		—		—		—			(30	)		—		—		—			—		6,240
Total Assets	$	314,801	$	—	$	—	$	(7,299	)	$	(23	)	$	140,860	$	—	$	(90,424	)	$	—	$	357,915

*Includes perpetual preferred stock valued at fair value as of 1/1/2021 pursuant to SSAP. No, 32B.

Fair Value Methodology

Description of Pricing Inputs

The Company predominantly uses third-party pricing services and broker quotes to determine fair values. The third-party pricing services and brokers use certain inputs to determine the value of loan-backed and structured securities, including residential mortgage-backed securities, commercial mortgage-backed securities, and other asset-backed securities. For these securities, the valuation consists of inputs such as, but not limited to: 1) monthly principal and interest payments on the underlying assets, 2) average lives of the securities, 3) prepayment speeds, 4) credit spreads, 5) treasury and swap yield curves, 6) discount margins, and 7) credit ratings of the securities.

To price corporate bonds, U.S. government-related securities, and other government-related securities, the brokers and third-party pricing services utilize a valuation model that consists of a hybrid income and market approach to valuation, while the Company uses a discounted cash flow model with both observable and unobservable inputs to determine a price when the securities are illiquid bonds. The external and internal pricing models include inputs such as, but not limited to: 1) principal and interest payments, 2) coupon, 3) maturity, 4) treasury yield curve, 5) credit spreads from new issue and secondary trading markets, 6) dealer quotes with adjustments for issues with early redemption features, 7) illiquidity premiums, 8) discount margins from dealers in the new issue market, 9) underlying collateral, and 10) comparative bond analysis.

The third-party pricing services price equity securities using market observable prices for the same or similar securities traded in an active market.

Mortgage loan valuations are categorized as Level 3. The Company utilizes an internally developed model to estimate fair value. This model includes inputs derived by the Company based on assumed discount rates relative to the Company’s current mortgage lending rate and an expected cash flow analysis based on a review of the mortgage loan terms. The model also contains the Company’s determined representative risk adjustment assumptions related to nonperformance and liquidity risks.

The Company’s Separate Account assets consist of financial instruments similar to those held in the General Account. The Company utilizes the same valuation methodology as described above in determining the fair value of Separate Account assets as the Company does for General Account assets. All assets in the Separate Account are held at fair value, except for BOLI contracts. The BOLI Separate Account assets and liabilities are stated at book value. The Separate Account liability matches the Separate Account asset value and its fair value is determined from valuation methods that are consistent with the Separate Account assets.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Determination of Fair Values

The valuation methodologies used to determine the fair values of assets and liabilities reflect market participant assumptions and are based on the application of the fair value hierarchy that prioritizes observable market inputs over unobservable inputs. The Company determines the fair values of certain financial assets and financial liabilities based on quoted market prices, where available. The Company also determines certain fair values based on future cash flows discounted at the appropriate current market rate. Fair values reflect adjustments for counterparty credit quality, the Company’s credit standing, liquidity, and where appropriate, risk margins on unobservable parameters. The following is a discussion of the methodologies used to determine fair values for financial instruments owned by the Company.

The fair values of corporate bonds, government securities, equity securities, and mortgage-backed securities are determined by management after considering one of three primary sources of information: third-party pricing services, non-binding independent broker quotations, or pricing matrices. Security pricing is applied using a ‘‘waterfall’’ approach whereby publicly available prices are first sought from third-party pricing services and the remaining unpriced securities are submitted to independent brokers for non-binding prices. Typical inputs used by these pricing methods include, but are not limited to: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. Based on the typical trading volumes and the lack of quoted market prices for fixed maturity investments, third-party pricing services derive the majority of security prices from observable market inputs such as recent reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information outlined above. If there are no recent reported trades, the third-party pricing services and brokers may use matrix or model processes to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at an estimated market rate. Certain securities are priced via independent non-binding broker quotations, which are considered to have no significant unobservable inputs. When using non-binding independent broker quotations, the Company obtains two quotes per security when available. Where multiple broker quotes are obtained, the Company reviews the quotes and selects the quote that provides the best estimate of the price a market participant would pay for these specific assets in an arm’s-length transaction. A pricing matrix is used to price securities for which the Company is unable to obtain or effectively rely on either a price from a third-party pricing service or an independent broker quotation.

The Company has analyzed the third-party pricing services’ valuation methodologies and related inputs and has also evaluated the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy level based upon trading activity and the observability of market inputs. Based on this evaluation and investment class analysis, each price was classified into Level 1, 2, or 3. Most prices provided by third-party pricing services are classified into Level 2 because the significant inputs used in pricing the securities are market observable and the observable inputs are corroborated by the Company. Since the matrix pricing of certain debt securities includes significant non-observable inputs, they are classified as Level 3.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

The pricing matrix used by the Company begins with current spread levels to determine the market price for the security. The credit spreads, assigned by brokers, incorporate the issuer’s credit rating, liquidity discounts, weighted average of contracted cash flows, risk premium, if warranted, due to the issuer’s industry, and the security’s time to maturity. The Company uses credit ratings provided by nationally recognized rating agencies.

For securities that are priced via non-binding independent broker quotations, the Company assesses whether prices received from independent brokers represent a reasonable estimate of fair value through an analysis using internal and external cash flow models developed based on spreads and, when available, market indices. The Company uses a market-based cash flow analysis to validate the reasonableness of prices received from independent brokers. These analytics, which are updated daily, incorporate various metrics (yield curves, credit spreads, prepayment rates, etc.) to determine the valuation of such holdings. As a result of this analysis, if the Company determines there is a more appropriate fair value based upon the analytics, the price received from the independent broker is adjusted accordingly. The Company did not adjust any quotes or prices received from brokers during the years ended December 31, 2022, 2021 and 2020.

The fair value hierarchy of derivative instruments measured at fair value at December 31 is as follows:

2022
Description	Level 1		Level 2		Level 3		Net Asset Value (NAV)		Total
	($ in thousands)
Derivative assets
Interest rate contracts	$	2,589	$	783	$	—	$	—	$	3,372
Foreign currency contracts		1,295		—		—		—		1,295
Equity contracts		21,977		339,462		—		—		361,439
Total derivative assets	$	25,861	$	340,245	$	—	$	—	$	366,106

Derivative liabilities
Interest rate contracts	$	1,889	$	31,840	$	—	$	—	$	33,729
Foreign currency contracts		1,752		15,208		—		—		16,960
Equity contracts		7,546		205,462		—		—		213,008
Total derivative liabilities	$	11,187	$	252,510	$	—	$	—	$	263,697

2021
Description	Level 1		Level 2		Level 3		Net Asset Value (NAV)		Total
	($ in thousands)
Derivative assets
Interest rate contracts	$	4,528	$	203,342	$	—	$	—	$	207,870
Foreign currency contracts		365		—		—		—		365
Equity contracts		54,006		986,476		—		—		1,040,482
Total derivative assets	$	58,899	$	1,189,818	$	—	$	—	$	1,248,717

Derivative liabilities
Interest rate contracts	$	4,416	$	173,931	$	—	$	—	$	178,347
Foreign currency contracts		2,049		12,708		—		—		14,757
Equity contracts		13,102		766,552		—		—		779,654
Total derivative liabilities	$	19,567	$	953,191	$	—	$	—	$	972,758

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

There were no Level 3 derivatives held by the Company as of December 31, 2022 or 2021.

Derivative instruments are valued using exchange prices or counterparty quotations. The Company performs quantitative and qualitative analysis each quarter on derivative valuations. Derivative instruments classified as Level 1 generally include futures, options, and warrants, all of which are traded on active exchange markets. Derivative instruments classified as Level 2 primarily include swaps, options, forwards, and swaptions, which are traded over the counter. Level 2 also includes certain centrally cleared derivatives. These Level 2 derivative valuations are determined using independent broker quotations, which are corroborated with observable market inputs.

The following table presents the Company’s fair value hierarchy for its financial instruments as of December 31:

2022
Type of Financial Instrument	Aggregate Fair Value		Carrying Value		Level 1		Level 2		Level 3
	($ in thousands)
Assets
Bonds	$	41,441,691	$	47,180,219	$	298,362	$	39,184,615	$	1,958,714
Common stocks *		174,544		174,544		2,029		—		172,515
Preferred stocks		465,457		540,147		423,945		35,572		5,940
Mortgage loans		9,744,553		10,558,447		—		—		9,744,553
Cash		6,142		6,142		6,142		—		—
Cash equivalents		362,949		362,949		362,949		—		—
Contract loans		830,400		830,400		—		—		830,400
Derivative assets		366,106		366,106		25,860		340,246		—
Derivative collateral and receivables		60,639		60,639		60,639		—		—
Securities lending collateral		162,119		162,119		—		162,119		—
Other invested assets *		673,066		801,636		—		648,038		25,028
Separate Account assets		14,111,355		14,111,642		13,307,270		714,735		89,350
Liabilities
Guaranteed investment contracts (GICs)		9,510,471		9,806,466		—		—		9,510,471
Deposit-type contracts other than GICs		2,197,819		2,099,585		—		—		2,197,819
Derivative liabilities		263,697		267,352		11,188		252,509		—
Derivative collateral and payables		62,269		62,269		62,269		—		—
Surplus Notes		82,585		110,000		—		—		82,585

* Excluding investments accounted for under the equity method

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

2021
Type of Financial Instrument	Aggregate Fair Value		Carrying Value		Level 1		Level 2		Level 3
	($ in thousands)
Assets
Bonds	$	52,216,520	$	47,120,591	$	288,925	$	49,897,680	$	2,029,915
Common stocks*		146,568		146,568		3,083		—		143,485
Preferred stocks		716,544		707,270		670,208		40,096		6,240
Mortgage loans		9,977,072		9,557,217		—		—		9,977,072
Cash		33,923		33,923		33,923		—		—
Cash equivalents		415,205		415,205		415,205		—		—
Short-term investments		2,696		2,626		—		2,696		—
Contract loans		847,471		847,471		—		—		847,471
Derivative assets		1,248,717		1,248,717		58,899		1,189,818		—
Derivative collateral and receivables		192,298		192,298		192,298		—		—
Securities lending collateral		179,083		179,083		—		179,083		—
Other invested assets		910,872		809,003		—		908,487		2,385
Separate Account assets		16,385,818		16,385,944		15,306,358		871,270		208,190
Liabilities
Guaranteed investment contracts (GICs)		8,598,320		8,194,685		—		—		8,598,320
Deposit-type contracts other than GICs		2,311,603		2,178,649		—		—		2,311,603
Derivative liabilities		972,758		960,050		19,567		953,191		—
Derivative collateral and payables		195,926		195,926		195,926		—		—
Surplus Notes		116,027		110,000		—		—		116,027

* Excluding investments accounted for under the equity method

Bond and preferred stock fair values are determined using methodologies prescribed by the NAIC. The fair values of bonds and preferred stocks are determined by management after considering one of three primary sources of information: third-party pricing services, non-binding independent broker quotations, or pricing matrices.

Publicly traded unaffiliated common stock is valued based on market trades and is a Level 1 valuation under SSAP No. 100R. As of December 31, 2022 and 2021, the Company held $172.5 million and $143.5 million, respectively, of FHLB stock, which is classified as Level 3. The Company believes that the cost of the FHLB stock approximates fair value. The remaining amount of equity securities classified as Level 3 consists primarily of holdings obtained through bankruptcy proceedings, debt restructurings or tender offers, including $15 thousand and $10 thousand of Hercules Inc. publicly traded common stock warrants obtained through a tender offer as of December 31, 2022 and 2021, respectively.

The carrying value of the Company’s cash and short-term investments approximates fair value.

Cash equivalent fair values are determined using methodologies prescribed by the NAIC. The fair value of cash equivalents is provided by a third-party pricing service.

The Company estimates the fair value of mortgage loans using an internally developed model. This model includes inputs derived by the Company based on assumed discount rates relative to the Company’s current mortgage loan lending rate and an expected cash flow analysis based on a review of the mortgage loan terms. The model also contains the Company’s determined representative risk adjustment assumptions related to nonperformance and liquidity risks.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

Contract loans are funds provided to policy holders in return for a claim on the account value of the policy. The funds provided are limited to a certain percent of the account balance. The nature of contract loans is to have low default risk as the loans are fully collateralized by the value of the policy. The majority of contract loans do not have a stated maturity and the balances and accrued interest are repaid with proceeds from the policy account balance. Due to the collateralized nature of contract loans and unpredictable timing of repayments, the Company’s fair value of contract loans approximates carrying value.

For the fair value of domestic securities categorized as securities lending collateral, the Securities Lending program administrator uses four vendors as information sources for prices and other indicative data. Pricing data is requested daily, as available. In the event multiple prices are received for the same security, the lower price is utilized.

The Separate Account assets are carried at fair value and are equal to the Separate Account liabilities, which represent the policyholder’s equity in those assets, except for BOLI contracts. The BOLI Separate Account assets are stated at book value. These amounts are reported separately as assets and liabilities related to Separate Accounts in the accompanying financial statements. Separate Account assets are invested in bonds, mortgage loans, preferred stocks, and open-ended mutual funds. The fair values of bonds and preferred stocks held in Separate Accounts are determined using methodologies prescribed by the NAIC. The fair values of bonds and preferred stocks are determined by management after considering one of three primary sources of information: third-party pricing services, non-binding independent broker quotations, or pricing matrices. These valuations are generally categorized as a Level 2 valuation as defined by SSAP No. 100R. The fair value of open-ended mutual funds held in Separate Accounts was obtained from unadjusted quoted market prices. These valuations are categorized as a Level 1 valuation as defined by SSAP No. 100R.

Other invested assets, excluding investments accounted for under the equity method, include investments in unaffiliated surplus debentures and investments in partnerships. The fair value of investments accounted for under the equity method approximates par value. The fair value of certain surplus notes reported as "Other invested assets" is determined using methodologies prescribed by the NAIC. The fair value of these surplus notes is determined by management after considering one of three primary sources of information: third-party pricing services, non-binding independent broker quotations, or pricing matrices. The fair value of certain partnerships reported as “Other Invested assets” is determined using the cost method, net of any impairment.

Fair values of the Company's guaranteed investment contracts are estimated using discounted cash flows. Other deposit-type contracts include annuities certain, supplemental contracts, dividend accumulations, and retained assets. The Company estimates the fair values of annuities certain and supplemental contracts using models based on discounted estimated cash flows. The discount rates used in the models were based on a current market rate for similar financial instruments. The Company estimates that the fair value of dividend accumulations and retained asset balances approximate carrying value.

Included in the derivative liabilities fair value disclosure are $15.2 million and $12.7 million related to a derivative instrument qualifying for hedge accounting that have an $18.9 million and $0 carrying value in the Statements of Admitted Assets, Liabilities, and Capital and Surplus as of December 31, 2022 and 2021, respectively.

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

The Company estimates the fair value of its Surplus Notes using internal discounted cash flow models. The discount rates used in the model are based on a current market yield for similar financial instruments.

The Company held no financial instruments as of December 31, 2022 and 2021, for which it was not practicable to estimate fair value. The Company held no financial instruments measured at NAV as of December 31, 2022 and 2021.

20.

Retained Assets

The Company accounts for retained assets in a manner similar to supplementary contracts. Claims expense is reported in “Death and annuity benefits” in the Statements of Operations. In lieu of a cash payment to the beneficiary, a liability is established in “Liability for deposit-type contracts” in the Statements of Admitted Assets, Liabilities, and Capital and Surplus. For 2020 and through March 2021, the credited rate for direct retained asset accounts was 0.40% for accounts opened prior to May 1, 2019, and 1.0% for accounts opened on or after May 1, 2019. After April 1, 2021 and for 2022, the credited rate for all direct retained asset accounts was 0.40%.

In the event of a claim, the beneficiary is given the option of a direct payment, a settlement option provided by the policy or a retained asset account. Retained asset accounts are generally used as the default method for settlement of claims when an election for payment has not been made. For some assumed business, however, retained asset accounts are not the default method for settlement of claims.

The table below summarizes the number and balance of retained asset accounts in force, by aging category, as of December 31:

	In Force ($ in thousands)
	2022				2021
	Number		Balance		Number		Balance
Up to and including 12 Months		1,159	$	157,750		1,420	$	204,839
13 to 24 Months		952		105,455		862		95,251
25 to 36 Months		637		60,012		612		59,434
37 to 48 Months		472		44,564		473		31,884
49 to 60 Months		352		22,348		379		21,648
Over 60 Months		2,267		117,668		2,198		113,744
Total		5,839		507,797		5,944		526,800

PROTECTIVE LIFE INSURANCE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Statutory Basis)

The Company’s retained asset accounts are individual contracts. The table below shows retained asset components as of December 31:

	($ in thousands)
	2022				2021
	Number		Balance		Number		Balance
Number/Balance of Retained Asset Accounts at the Beginning of the Year		5,944	$	526,800		5,594	$	445,499
Number/Balance of Retained Asset Account Issue/Added During the Year		2,214		467,213		2,452		474,218
Investment Earnings Credited to Retained Asset Accounts During the Year		XXX		2,349		XXX		2,702
Fees and Other Charges Assessed to Retained Asset Accounts During the Year		XXX		—		XXX		—
Number/Amount of Retained Asset Accounts Transferred to State Unclaimed Property funds During the Year		79		67		6		18
Number/Amount of Retained Asset Accounts Closed/Withdrawn During the Year		2,240		488,498		2,096		395,601
Number/Balance of Retained Asset Accounts at the End of the Year		5,839	$	507,797		5,944	$	526,800

21.

Company-owned Life Insurance

The Company is the owner and beneficiary of life insurance policies included in the “Other assets” line of the Statements of Admitted Assets, Liabilities, and Capital and Surplus at their cash surrender values pursuant to SSAP No. 21R. At December 31, 2022 the cash surrender value in an investment vehicle was $666.7 million. This was allocated into the following categories based on primary underlying investment characteristics, other invested assets 72.8%, stocks 25.3%, and cash and short-term investments 1.9%. At December 31, 2021, the cash surrender value in an investment vehicle was $710.0 million. This was allocated into the following categories based on primary underlying investment characteristics, other invested assets 68.3%, stocks 29.6%, and cash and short-term investments 2.1%.

22.

Subsequent Events

As a result of events that occurred at certain financial institutions and the subsequent regulatory actions taken during March of 2023, the Company has evaluated the impact of these events to certain holdings within its investment portfolio. As a result of this evaluation, the Company sold certain bonds and recognized a pre-tax realized investment loss of $11.1 million. In addition, the Company identified certain investments in bonds on which it will take other-than-temporary impairments as of March 31, 2023, based on the fair value of the underlying holdings. As of the date of this report, the Company expects to recognize pre-tax other-than-temporary impairments of approximately $78.6 million, related to certain investment holdings within the banking sector.

The Company has evaluated the effects of events subsequent to December 31, 2022, and through March 31, 2023 (the date of the issuance of the Statutory statements included herein), and there are no other material subsequent events to report.

SUPPLEMENTAL SCHEDULES

PROTECTIVE LIFE INSURANCE COMPANY

SCHEDULE I

Summary of Investments-Other than Investments in Related Parties

as of December 31, 2022

Type of investment	Cost		Fair Value		Amount at which shown in the balance sheet
	($ in thousands)
Fixed maturities:
Bonds:
United States Government and government agencies and authorities	$	3,691,153	$	3,207,186	$	3,691,153
States, municipalities and political subdivisions		550,031		516,605		550,031
Foreign governments		105,885		95,888		105,885
Public utilities		4,420,176		3,894,222		4,420,176
Convertibles and bonds with warrants attached		72,316		72,109		72,316
All other corporate bonds		38,340,657		33,655,682		38,340,657
Redeemable preferred stocks		239,160		164,470		239,160
Total fixed maturities		47,419,378		41,606,162		47,419,378
Equity securities:
Common stocks:
Banks, trust and insurance companies		172,500		172,500		172,500
Industrial, miscellaneous and all other		1,230		2,044		2,044
Nonredeemable preferred stocks		411,931		300,987		300,987
Total equity securities		585,661		475,531		475,531
Mortgage loans on real estate		10,558,447		9,744,553		10,558,447
Policy loans		830,400		830,400		830,400
Other long-term investments		1,399,159		1,265,127		1,393,697
Total investments	$	60,793,045	$	53,921,773	$	60,677,453

See accompanying independent auditors’ report.

S-1

PROTECTIVE LIFE INSURANCE COMPANY

SCHEDULE IV

Reinsurance

as of and for the years ended December 31, 2022, 2021, and 2020

	Gross amount		Ceded to other companies		Assumed from other companies		Net amount		Percentage of amount assumed to net
	($ in thousands)
2022
Life insurance in force	$	701,879,708	$	213,857,595	$	137,079,032	$	625,101,145		21.9	%
Premiums:
Life insurance	$	5,182,542	$	2,544,520	$	727,562	$	3,365,584		21.6	%
Accident and health insurance		57,869		2,148		13,985		69,706		20.1	%
Total	$	5,240,411	$	2,546,668	$	741,547	$	3,435,290		21.6	%

2021
Life insurance in force	$	633,068,368	$	232,765,104	$	184,926,353	$	585,229,617		31.6	%
Premiums:
Life insurance	$	5,229,653	$	1,050,368	$	878,036	$	5,057,321		17.4	%
Accident and health insurance		11,287		3,116		28,740		36,911		77.9	%
Total	$	5,240,940	$	1,053,484	$	906,776	$	5,094,232		17.8	%

2020
Life insurance in force	$	579,902,781	$	268,256,639	$	200,708,224	$	512,354,366		39.2	%
Premiums:
Life insurance	$	4,075,575	$	1,657,228	$	1,272,377	$	3,690,724		34.5	%
Accident and health insurance		14,463		3,147		64,614		75,930		85.1	%
Total	$	4,090,038	$	1,660,375	$	1,336,991	$	3,766,654		35.5	%

See accompanying independent auditors’ report.

S-2