Index
Variable Annuity Account A of Protective Life
| Page(s) | |
| Report of Independent Registered Public Accounting Firm | 1 |
| Statement of Assets and Liabilities as of December 31, 2022 | 14 |
| Statement of Operations for the year ended December 31, 2022 | 34 |
| Statements of Changes in Net Assets for each of the years or periods in the two-year period ended December 31, 2022 | 54 |
| Notes to Financial Statements | 93 |
PROTECTIVE LIFE AND ANNUITY 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.
Variable Annuity Account A of Protective Life of
Protective Life and Annuity Insurance Company
Financial Statements as of and for the Year Ended December 31, 2022 and Report of Independent Registered Public Accounting Firm
Report of Independent Registered Public Accounting Firm
To
the Contract Owners of Variable Annuity Account A of Protective Life and the Board of Directors of
Protective Life and Annuity 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 Variable Annuity Account A of Protective Life (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 and Annuity Insurance Company separate accounts since 2019.
Birmingham,
Alabama
April 18, 2023
1
Appendix A
The subaccounts that comprise Variable Annuity Account A of Protective Life were audited according to varying periods as defined in the table below:
| Subaccounts | Statements of Assets and Liabilities |
Statements of Operations |
Statements of Changes in Net Assets |
| AB VPS Large Cap Growth B | 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 |
| AB VPS Small Cap Growth B | As of December 31, 2022 | For the year then ended December 31, 2022 | For the period from November 9, 2021 (commencement of operations) to December 31, 2022 |
| AB VPS Small/Mid Cap Value B | As of December 31, 2022 | For the year then ended December 31, 2022 | For the period from November 9, 2021 (commencement of operations) to 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 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 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 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 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 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 4 | As of December 31, 2022 | For the year then ended December 31, 2022 | For the period from February 11, 2021 (commencement of operations) to December 31, 2022 |
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| American Funds IS International Class 4 | As of December 31, 2022 | For the year then ended December 31, 2022 | For the period from January 20, 2021 (commencement of operations) to 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 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 4 | As of December 31, 2022 | For the period from May 19, 2022 (commencement of operations) to December 31, 2022 | For the period from May 19, 2022 (commencement of operations) to 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 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 |
| Blackrock Global Allocation V.I. III | As of December 31, 2022 | For the year then ended December 31, 2022 | For the period from September 8, 2021 (commencement of operations) to December 31, 2022 |
| ClearBridge Variable Large Cap Growth II | As of December 31, 2022 | Not applicable | For the period from December 9,2022 (commencement of operations) to December 31, 2022 |
| ClearBridge Variable Mid Cap 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 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 |
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| 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 period from May 31, 2022 (commencement of operations) to December 31, 2022 | For the period from May 31, 2022 (commencement of operations) to December 31, 2022 |
| Columbia VP Strategic Income 2 | As of December 31, 2022 | For the period from July 13, 2022 (commencement of operations) to December 31, 2022 | For the period from July 13, 2022 (commencement of operations) to December 31, 2022 |
| DFA VA Global Bond | As of December 31, 2022 | For the year then ended December 31, 2022 | For the period from September 29, 2021 (commencement of operations) to December 31, 2022 |
| DFA VA International Small | As of December 31, 2022 | For the year then ended December 31, 2022 | For the period from July 16, 2021 (commencement of operations) to December 31, 2022 |
| DFA VA International Value | As of December 31, 2022 | For the year then ended December 31, 2022 | For the period from July 16, 2021 (commencement of operations) to December 31, 2022 |
| DFA VA Short-Term Fixed | As of December 31, 2022 | For the year then ended December 31, 2022 | For the period from July 16, 2021 (commencement of operations) to December 31, 2022 |
| DFA VA US Large Value | As of December 31, 2022 | For the year then ended December 31, 2022 | For the period from July 16, 2021 (commencement of operations) to December 31, 2022 |
| DFA VA US Targeted Value | As of December 31, 2022 | For the period from December 9, 2022 (commencement of operations) to December 31, 2022 | For the period from December 9, 2022 (commencement of operations) to 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 |
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| 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 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 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 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 |
| Fidelity VIP Fundsmanager 20% Service 2 | As of December 31, 2022 | For the period from May 9, 2022 (commencement of operations) to December 31, 2022 | For the period from May 9, 2022 (commencement of operations) to December 31, 2022 |
| Fidelity VIP Fundsmanager 85% Service 2 | As of December 31, 2022 | Not applicable | For the period from December 9, 2022 (commencement of operations) to December 31, 2022 |
| Fidelity VIP Health Care Port Svc 2 | As of December 31, 2022 | For the period from April 29, 2022 (commencement of operations) to December 31, 2022 | For the period from April 29, 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) |
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| 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 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 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 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 period from April 26, 2022 (commencement of operations) to December 31, 2022 | For the period from April 26, 2022 (commencement of operations) to December 31, 2022 |
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| 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 |
| 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 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 |
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| Invesco V.I. Conservative Balance II | As of December 31, 2022 | For the period from July 13, 2022 (commencement of operations) to December 31, 2022 | For the period from July 13, 2022 (commencement of operations) to 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 |
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| 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. 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 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 |
| 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 Calibrated Dividend Growth 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 & 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 Inc 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 |
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| 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 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 |
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| MFS VIT Total Return Bond 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 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, Inc. 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 |
| 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 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 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 |
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| 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 |
| T. Rowe Price Blue Chip Growth Port 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 Port II | As of December 31, 2022 | For the period from January 31, 2022 (commencement of operations) to December 31, 2022 | For the period from January 31, 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 |
| Vanguard VIF Capital Growth | As of December 31, 2022 | For the period from April 29, 2022 (commencement of operations) to December 31, 2022 | For the period from April 29, 2022 (commencement of operations) to December 31, 2022 |
| Vanguard VIF Conservative Allocation 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 |
| 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 |
12
| 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 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 Portfolio | As of December 31, 2022 | For the period from June 30, 2022 (commencement of operations) to December 31, 2022 | For the period from June 30, 2022 (commencement of operations) to 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 period from April 29, 2022 (commencement of operations) to December 31, 2022 | For the period from April 29, 2022 (commencement of operations) to 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 |
13
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2022
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| ($ in thousands) | 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 4 | American Funds IS Capital Income Builder 4 | American Funds IS Capital World Growth and Income Fund 4 | American Funds IS Global Growth Class 4 | |||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 138 | $ | 64 | $ | 160 | $ | 719 | $ | 137 | $ | 44 | $ | 290 | ||||||||||||||
| Receivable from the contracts | - | - | - | - | - | - | - | |||||||||||||||||||||
| Receivable from the fund manager | 0 | 0 | 0 | 1 | 0 | 0 | 0 | |||||||||||||||||||||
| Total receivables | 0 | 0 | 0 | 1 | 0 | 0 | 0 | |||||||||||||||||||||
| Total assets | 138 | 64 | 160 | 720 | 137 | 44 | 291 | |||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||
| Payable to the contracts | 0 | 0 | 0 | 1 | 0 | 0 | 0 | |||||||||||||||||||||
| Payable to the fund manager | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total liabilities | 0 | 0 | 0 | 1 | 0 | 0 | 0 | |||||||||||||||||||||
| NET ASSETS | $ | 138 | $ | 64 | $ | 160 | $ | 719 | $ | 137 | $ | 44 | $ | 290 | ||||||||||||||
| Fair value per share (NAV) | $ | 53.45 | $ | 6.77 | $ | 16.39 | $ | 21.74 | $ | 10.96 | $ | 11.35 | $ | 29.51 | ||||||||||||||
| Shares outstanding in the Separate Account | 3 | 9 | 10 | 33 | 13 | 4 | 10 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 168 | $ | 63 | $ | 204 | $ | 761 | $ | 146 | $ | 54 | $ | 273 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Continued)
See accompanying notes to the financial statements.
14
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2022
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| ($ in thousands) | American Funds IS Global Small Capitalization Class 4 | American Funds IS Growth Class 4 | American Funds IS Growth- Income Class 4 | American Funds IS International Class 4 | American Funds IS New World Class 4 | American Funds IS The Bond Fund of America 4 | American Funds IS U.S. Government Securities Fund 4 | |||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 10 | $ | 182 | $ | 20 | $ | 34 | $ | 239 | $ | 116 | $ | 98 | ||||||||||||||
| Receivable from the contracts | - | - | - | - | - | - | - | |||||||||||||||||||||
| Receivable from the fund manager | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Total receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Total assets | 10 | 182 | 20 | 34 | 239 | 116 | 98 | |||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||
| Payable to the contracts | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Payable to the fund manager | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| NET ASSETS | $ | 10 | $ | 182 | $ | 20 | $ | 34 | $ | 239 | $ | 116 | $ | 98 | ||||||||||||||
| Fair value per share (NAV) | $ | 15.29 | $ | 73.64 | $ | 48.72 | $ | 14.99 | $ | 21.84 | $ | 9.23 | $ | 9.86 | ||||||||||||||
| Shares outstanding in the Separate Account | 1 | 2 | 0 | 2 | 11 | 13 | 10 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 14 | $ | 188 | $ | 20 | $ | 44 | $ | 244 | $ | 138 | $ | 106 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Continued)
See accompanying notes to the financial statements.
15
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2022
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| ($ in thousands) | American Funds IS Washington Mutual Investors Fund 4 | Blackrock 60/40 Target Allocation ETF V.I. Fund | Blackrock Global Allocation V.I. III | ClearBridge Variable Large Cap Growth II | ClearBridge Variable Mid Cap II | ClearBridge Variable Small Cap Growth II | Columbia
VP Balanced 2 | |||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 275 | $ | 207 | $ | 40 | $ | 6 | $ | 207 | $ | 122 | $ | 276 | ||||||||||||||
| Receivable from the contracts | - | - | - | - | - | - | - | |||||||||||||||||||||
| Receivable from the fund manager | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Total receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Total assets | 275 | 208 | 40 | 6 | 207 | 122 | 276 | |||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||
| Payable to the contracts | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Payable to the fund manager | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| NET ASSETS | $ | 275 | $ | 207 | $ | 40 | $ | 6 | $ | 207 | $ | 122 | $ | 276 | ||||||||||||||
| Fair value per share (NAV) | $ | 12.34 | $ | 11.61 | $ | 11.87 | $ | 26.72 | $ | 20.17 | $ | 23.40 | $ | 34.41 | ||||||||||||||
| Shares outstanding in the Separate Account | 22 | 18 | 3 | 0 | 10 | 5 | 8 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 304 | $ | 222 | $ | 47 | $ | 6 | $ | 146 | $ | 109 | $ | 297 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Continued)
See accompanying notes to the financial statements.
16
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY 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 Strategic Income 2 | DFA
VA Global Bond | DFA
VA International Small | DFA
VA International Value | DFA
VA Short-Term Fixed | |||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 232 | $ | 15 | $ | 6 | $ | 34 | $ | 13 | $ | 251 | $ | 79 | ||||||||||||||
| Receivable from the contracts | - | - | - | - | - | - | - | |||||||||||||||||||||
| Receivable from the fund manager | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Total receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Total assets | 233 | 15 | 6 | 34 | 13 | 251 | 79 | |||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||
| Payable to the contracts | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Payable to the fund manager | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| NET ASSETS | $ | 232 | $ | 15 | $ | 6 | $ | 34 | $ | 13 | $ | 251 | $ | 79 | ||||||||||||||
| Fair value per share (NAV) | $ | 8.23 | $ | 9.12 | $ | 3.46 | $ | 9.62 | $ | 10.75 | $ | 12.24 | $ | 9.93 | ||||||||||||||
| Shares outstanding in the Separate Account | 28 | 2 | 2 | 3 | 1 | 21 | 8 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 264 | $ | 15 | $ | 7 | $ | 36 | $ | 15 | $ | 269 | $ | 81 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Continued)
See accompanying notes to the financial statements.
17
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2022
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| ($ in thousands) | DFA
VA US Large Value | DFA
VA US Targeted Value | Fidelity Contrafund Portfolio SC2 | Fidelity Equity Income SC2 | Fidelity Index 500 Portfolio SC2 | Fidelity Investment Grade Bonds SC2 | Fidelity
Mid Cap SC2 | |||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 312 | $ | 10 | $ | 2,836 | $ | 90 | $ | 4,388 | $ | 4,302 | $ | 1,953 | ||||||||||||||
| Receivable from the contracts | - | - | - | - | - | - | - | |||||||||||||||||||||
| Receivable from the fund manager | 0 | 0 | 4 | 0 | 6 | 6 | 34 | |||||||||||||||||||||
| Total receivables | 0 | 0 | 4 | 0 | 6 | 6 | 34 | |||||||||||||||||||||
| Total assets | 312 | 10 | 2,840 | 90 | 4,394 | 4,308 | 1,988 | |||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||
| Payable to the contracts | 0 | 0 | 4 | 0 | 6 | 6 | 34 | |||||||||||||||||||||
| Payable to the fund manager | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total liabilities | 0 | 0 | 4 | 0 | 6 | 6 | 34 | |||||||||||||||||||||
| NET ASSETS | $ | 312 | $ | 10 | $ | 2,836 | $ | 90 | $ | 4,388 | $ | 4,302 | $ | 1,953 | ||||||||||||||
| Fair value per share (NAV) | $ | 30.43 | $ | 20.54 | $ | 36.54 | $ | 22.71 | $ | 369.70 | $ | 10.47 | $ | 31.20 | ||||||||||||||
| Shares outstanding in the Separate Account | 10 | 0 | 78 | 4 | 12 | 411 | 63 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 334 | $ | 11 | $ | 1,975 | $ | 52 | $ | 2,388 | $ | 5,257 | $ | 1,968 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Continued)
See accompanying notes to the financial statements.
18
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY 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 Funds manager 20% Service 2 | Fidelity
VIP Funds manager 85% Service 2 | Fidelity
VIP Health Care Port Svc 2 | Franklin Dynatech VIP Fund | Franklin Income VIP CL 2 | |||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 3 | $ | 487 | $ | 15 | $ | 11 | $ | 17 | $ | 121 | $ | 1,087 | ||||||||||||||
| Receivable from the contracts | - | - | - | - | - | - | - | |||||||||||||||||||||
| Receivable from the fund manager | 0 | 1 | 0 | 0 | 0 | 0 | 1 | |||||||||||||||||||||
| Total receivables | 0 | 1 | 0 | 0 | 0 | 0 | 1 | |||||||||||||||||||||
| Total assets | 3 | 487 | 15 | 11 | 17 | 121 | 1,088 | |||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||
| Payable to the contracts | 0 | 1 | 0 | 0 | 0 | 0 | 1 | |||||||||||||||||||||
| Payable to the fund manager | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total liabilities | 0 | 1 | 0 | 0 | 0 | 0 | 1 | |||||||||||||||||||||
| NET ASSETS | $ | 3 | $ | 487 | $ | 15 | $ | 11 | $ | 17 | $ | 121 | $ | 1,087 | ||||||||||||||
| Fair value per share (NAV) | $ | 13.88 | $ | 18.74 | $ | 10.01 | $ | 10.40 | $ | 32.65 | $ | 2.97 | $ | 14.73 | ||||||||||||||
| Shares outstanding in the Separate Account | 0 | 26 | 2 | 1 | 1 | 41 | 74 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 4 | $ | 523 | $ | 16 | $ | 12 | $ | 16 | $ | 293 | $ | 1,056 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Continued)
See accompanying notes to the financial statements.
19
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2022
| 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
US Government Securities VIP CL 2 | Goldman
Sachs Global Trends Allocation Fund SC | Goldman
Sachs International Equity Insights | |||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 1,740 | $ | 4,155 | $ | 398 | $ | 553 | $ | 2,981 | $ | 239 | $ | 2 | ||||||||||||||
| Receivable from the contracts | - | - | - | - | - | - | - | |||||||||||||||||||||
| Receivable from the fund manager | 41 | 5 | 1 | 1 | 4 | 0 | 0 | |||||||||||||||||||||
| Total receivables | 41 | 5 | 1 | 1 | 4 | 0 | 0 | |||||||||||||||||||||
| Total assets | 1,781 | 4,160 | 399 | 553 | 2,985 | 239 | 2 | |||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||
| Payable to the contracts | 41 | 5 | 1 | 1 | 4 | 0 | 0 | |||||||||||||||||||||
| Payable to the fund manager | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total liabilities | 41 | 5 | 1 | 1 | 4 | 0 | 0 | |||||||||||||||||||||
| NET ASSETS | $ | 1,740 | $ | 4,155 | $ | 398 | $ | 553 | $ | 2,981 | $ | 239 | $ | 2 | ||||||||||||||
| Fair value per share (NAV) | $ | 15.16 | $ | 27.03 | $ | 12.53 | $ | 10.51 | $ | 10.19 | $ | 9.99 | $ | 7.66 | ||||||||||||||
| Shares outstanding in the Separate Account | 115 | 154 | 32 | 53 | 293 | 24 | 0 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 1,778 | $ | 3,653 | $ | 481 | $ | 817 | $ | 3,799 | $ | 274 | $ | 4 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Continued)
See accompanying notes to the financial statements.
20
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2022
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| ($ in thousands) | Goldman Sachs International Equity Insights SC | Goldman Sachs Large Cap Value Fund SC | 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 | |||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 307 | $ | 735 | $ | 1,229 | $ | 16 | $ | 22 | $ | 50 | $ | 922 | ||||||||||||||
| Receivable from the contracts | - | - | - | - | - | - | - | |||||||||||||||||||||
| Receivable from the fund manager | 0 | 9 | 14 | 0 | 0 | 0 | 1 | |||||||||||||||||||||
| Total receivables | 0 | 9 | 14 | 0 | 0 | 0 | 1 | |||||||||||||||||||||
| Total assets | 307 | 744 | 1,243 | 16 | 22 | 51 | 923 | |||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||
| Payable to the contracts | 0 | 9 | 14 | 0 | 0 | 0 | 1 | |||||||||||||||||||||
| Payable to the fund manager | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total liabilities | 0 | 9 | 14 | 0 | 0 | 0 | 1 | |||||||||||||||||||||
| NET ASSETS | $ | 307 | $ | 735 | $ | 1,229 | $ | 16 | $ | 22 | $ | 50 | $ | 922 | ||||||||||||||
| Fair value per share (NAV) | $ | 7.70 | $ | 8.35 | $ | 15.07 | $ | 10.40 | $ | 10.27 | $ | 9.20 | $ | 9.12 | ||||||||||||||
| Shares outstanding in the Separate Account | 40 | 88 | 82 | 2 | 2 | 5 | 101 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 322 | $ | 872 | $ | 1,241 | $ | 17 | $ | 23 | $ | 60 | $ | 1,166 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Continued)
See accompanying notes to the financial statements.
21
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2022
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| ($ in thousands) | 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 | Invesco
V.I. American Franchise I | Invesco
V.I. American Value II | Invesco
V.I. Balanced Risk Allocation II | |||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 69 | $ | 16 | $ | 384 | $ | 119 | $ | 55 | $ | 288 | $ | 6,087 | ||||||||||||||
| Receivable from the contracts | - | - | - | - | - | - | - | |||||||||||||||||||||
| Receivable from the fund manager | 0 | 0 | 0 | 0 | 0 | 0 | 7 | |||||||||||||||||||||
| Total receivables | 0 | 0 | 0 | 0 | 0 | 0 | 7 | |||||||||||||||||||||
| Total assets | 69 | 16 | 384 | 120 | 55 | 289 | 6,094 | |||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||
| Payable to the contracts | 0 | 0 | 0 | 0 | 0 | 0 | 7 | |||||||||||||||||||||
| Payable to the fund manager | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 7 | |||||||||||||||||||||
| NET ASSETS | $ | 69 | $ | 16 | $ | 384 | $ | 119 | $ | 55 | $ | 288 | $ | 6,087 | ||||||||||||||
| Fair value per share (NAV) | $ | 15.88 | $ | 16.02 | $ | 9.40 | $ | 8.68 | $ | 42.84 | $ | 15.48 | $ | 7.97 | ||||||||||||||
| Shares outstanding in the Separate Account | 4 | 1 | 41 | 14 | 1 | 19 | 764 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 68 | $ | 10 | $ | 435 | $ | 189 | $ | 65 | $ | 289 | $ | 9,206 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Continued)
See accompanying notes to the financial statements.
22
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2022
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| ($ in thousands) | 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 | Invesco
V.I. Discovery Mid Cap Growth Fund II | |||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 93 | $ | 92 | $ | 77 | $ | 959 | $ | 13 | $ | 52 | $ | 124 | ||||||||||||||
| Receivable from the contracts | - | - | - | - | - | - | - | |||||||||||||||||||||
| Receivable from the fund manager | 0 | 0 | 0 | 1 | 0 | 0 | - | |||||||||||||||||||||
| Total receivables | 0 | 0 | 0 | 1 | 0 | 0 | - | |||||||||||||||||||||
| Total assets | 93 | 92 | 77 | 959 | 13 | 52 | 124 | |||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||
| Payable to the contracts | 0 | 0 | 0 | 1 | 0 | 0 | - | |||||||||||||||||||||
| Payable to the fund manager | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total liabilities | 0 | 0 | 0 | 1 | 0 | 0 | - | |||||||||||||||||||||
| NET ASSETS | $ | 93 | $ | 92 | $ | 77 | $ | 959 | $ | 13 | $ | 52 | $ | 124 | ||||||||||||||
| Fair value per share (NAV) | $ | 34.77 | $ | 33.06 | $ | 20.34 | $ | 20.25 | $ | 13.69 | $ | 55.51 | $ | 47.86 | ||||||||||||||
| Shares outstanding in the Separate Account | 3 | 3 | 4 | 47 | 1 | 1 | 3 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 100 | $ | 106 | $ | 45 | $ | 885 | $ | 14 | $ | 51 | $ | 164 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Continued)
See accompanying notes to the financial statements.
23
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2022
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| ($ in thousands) | 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 | Invesco
V.I. Government Securities II | |||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 1,103 | $ | 61 | $ | 890 | $ | 29 | $ | 8 | $ | 3,955 | $ | 619 | ||||||||||||||
| Receivable from the contracts | - | - | - | - | - | - | - | |||||||||||||||||||||
| Receivable from the fund manager | 12 | 0 | 1 | 0 | 0 | 5 | 1 | |||||||||||||||||||||
| Total receivables | 12 | 0 | 1 | 0 | 0 | 5 | 1 | |||||||||||||||||||||
| Total assets | 1,115 | 61 | 891 | 29 | 8 | 3,960 | 620 | |||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||
| Payable to the contracts | 12 | 0 | 1 | 0 | 0 | 5 | 1 | |||||||||||||||||||||
| Payable to the fund manager | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total liabilities | 12 | 0 | 1 | 0 | 0 | 5 | 1 | |||||||||||||||||||||
| NET ASSETS | $ | 1,103 | $ | 61 | $ | 890 | $ | 29 | $ | 8 | $ | 3,955 | $ | 619 | ||||||||||||||
| Fair value per share (NAV) | $ | 16.03 | $ | 31.10 | $ | 30.30 | $ | 12.72 | $ | 3.94 | $ | 4.07 | $ | 9.98 | ||||||||||||||
| Shares outstanding in the Separate Account | 69 | 2 | 29 | 2 | 2 | 972 | 62 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 1,068 | $ | 55 | $ | 864 | $ | 31 | $ | 10 | $ | 5,423 | $ | 701 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Continued)
See accompanying notes to the financial statements.
24
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2022
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| ($ in thousands) | 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. Small Cap Equity II | Invesco
V.I. U.S. Government Money Fund I | |||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 23 | $ | 2,952 | $ | 119 | $ | 30 | $ | 569 | $ | 33 | $ | 31,777 | ||||||||||||||
| Receivable from the contracts | - | - | - | - | - | - | 250 | |||||||||||||||||||||
| Receivable from the fund manager | 0 | 168 | 0 | 0 | 1 | 0 | - | |||||||||||||||||||||
| Total receivables | 0 | 168 | 0 | 0 | 1 | 0 | 250 | |||||||||||||||||||||
| Total assets | 23 | 3,121 | 119 | 30 | 570 | 33 | 32,027 | |||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||
| Payable to the contracts | 0 | 168 | 0 | 0 | 1 | 0 | - | |||||||||||||||||||||
| Payable to the fund manager | - | - | - | - | - | - | 250 | |||||||||||||||||||||
| Total liabilities | 0 | 168 | 0 | 0 | 1 | 0 | 250 | |||||||||||||||||||||
| NET ASSETS | $ | 23 | $ | 2,952 | $ | 119 | $ | 30 | $ | 569 | $ | 33 | $ | 31,777 | ||||||||||||||
| Fair value per share (NAV) | $ | 19.78 | $ | 19.77 | $ | 28.42 | $ | 16.12 | $ | 15.74 | $ | 13.63 | $ | 1.00 | ||||||||||||||
| Shares outstanding in the Separate Account | 1 | 149 | 4 | 2 | 36 | 2 | 31,777 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 20 | $ | 2,841 | $ | 144 | $ | 36 | $ | 759 | $ | 45 | $ | 31,777 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Continued)
See accompanying notes to the financial statements.
25
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2022
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| ($ in thousands) | Lord
Abbett Bond Debenture VC | Lord
Abbett Calibrated Dividend Growth VC | Lord
Abbett Growth & Income VC | Lord
Abbett Growth Opportunities VC | Lord
Abbett Mid Cap Stock VC | Lord
Abbett Series Fundamental Equity VC | Lord
Abbett Series Short Duration Inc VC | |||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 4,969 | $ | 452 | $ | 274 | $ | 182 | $ | 159 | $ | 895 | $ | 19 | ||||||||||||||
| Receivable from the contracts | - | - | - | - | - | - | - | |||||||||||||||||||||
| Receivable from the fund manager | 6 | 1 | 0 | 0 | 0 | 26 | 0 | |||||||||||||||||||||
| Total receivables | 6 | 1 | 0 | 0 | 0 | 26 | 0 | |||||||||||||||||||||
| Total assets | 4,975 | 452 | 274 | 182 | 159 | 920 | 19 | |||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||
| Payable to the contracts | 6 | 1 | 0 | 0 | 0 | 26 | 0 | |||||||||||||||||||||
| Payable to the fund manager | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total liabilities | 6 | 1 | 0 | 0 | 0 | 26 | 0 | |||||||||||||||||||||
| NET ASSETS | $ | 4,969 | $ | 452 | $ | 274 | $ | 182 | $ | 159 | $ | 895 | $ | 19 | ||||||||||||||
| Fair value per share (NAV) | $ | 10.20 | $ | 14.86 | $ | 32.80 | $ | 8.06 | $ | 23.08 | $ | 15.16 | $ | 12.99 | ||||||||||||||
| Shares outstanding in the Separate Account | 487 | 30 | 8 | 23 | 7 | 59 | 1 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 5,991 | $ | 471 | $ | 206 | $ | 304 | $ | 133 | $ | 1,004 | $ | 21 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Continued)
See accompanying notes to the financial statements.
26
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2022
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| ($ in thousands) | MFS
Growth Series IC | MFS
Growth Series SC | MFS
Investors Trust IC | MFS
Investors Trust SC | MFS
New Discovery IC | MFS
New Discovery SC | MFS
Research IC | |||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 70 | $ | 646 | $ | 63 | $ | 343 | $ | 9 | $ | 523 | $ | 30 | ||||||||||||||
| Receivable from the contracts | - | - | - | - | - | - | - | |||||||||||||||||||||
| Receivable from the fund manager | 0 | 1 | 0 | 0 | 0 | 1 | 0 | |||||||||||||||||||||
| Total receivables | 0 | 1 | 0 | 0 | 0 | 1 | 0 | |||||||||||||||||||||
| Total assets | 70 | 647 | 63 | 343 | 9 | 524 | 30 | |||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||
| Payable to the contracts | 0 | 1 | 0 | 0 | 0 | 1 | 0 | |||||||||||||||||||||
| Payable to the fund manager | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total liabilities | 0 | 1 | 0 | 0 | 0 | 1 | 0 | |||||||||||||||||||||
| NET ASSETS | $ | 70 | $ | 646 | $ | 63 | $ | 343 | $ | 9 | $ | 523 | $ | 30 | ||||||||||||||
| Fair value per share (NAV) | $ | 48.02 | $ | 44.74 | $ | 32.27 | $ | 31.67 | $ | 11.31 | $ | 8.84 | $ | 27.74 | ||||||||||||||
| Shares outstanding in the Separate Account | 1 | 14 | 2 | 11 | 1 | 59 | 1 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 42 | $ | 531 | $ | 41 | $ | 224 | $ | 11 | $ | 833 | $ | 24 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Continued)
See accompanying notes to the financial statements.
27
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2022
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| ($ in thousands) | MFS
Research SC | MFS
Total Return IC | MFS
Total Return SC | MFS
Utilities IC | MFS
Utilities SC | MFS
VIT II Emerging Markets Equity SC | MFS
VIT II International Value SC | |||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 47 | $ | 54 | $ | 178 | $ | 5 | $ | 195 | $ | 4 | $ | 14 | ||||||||||||||
| Receivable from the contracts | - | - | - | - | - | - | - | |||||||||||||||||||||
| Receivable from the fund manager | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Total receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Total assets | 47 | 54 | 179 | 5 | 196 | 4 | 14 | |||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||
| Payable to the contracts | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Payable to the fund manager | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| NET ASSETS | $ | 47 | $ | 54 | $ | 178 | $ | 5 | $ | 195 | $ | 4 | $ | 14 | ||||||||||||||
| Fair value per share (NAV) | $ | 27.20 | $ | 22.49 | $ | 21.95 | $ | 36.32 | $ | 35.57 | $ | 11.19 | $ | 26.75 | ||||||||||||||
| Shares outstanding in the Separate Account | 2 | 2 | 8 | 0 | 5 | 0 | 1 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 48 | $ | 46 | $ | 147 | $ | 3 | $ | 132 | $ | 5 | $ | 9 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Continued)
See accompanying notes to the financial statements.
28
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2022
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| ($ in thousands) | MFS
VIT II MA Investors Growth Stock SC | MFS
VIT Total Return Bond Series SC | MFS
VIT Value SC | Morgan Stanley VIF, Inc. Global Real Estate II | PIMCO VIT All Asset Advisor | PIMCO
VIT Global Diversified Allocation Portfolio | PIMCO
VIT Long- Term US Government Advisor | |||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 107 | $ | 1,107 | $ | 398 | $ | 247 | $ | 58 | $ | 898 | $ | 1,006 | ||||||||||||||
| Receivable from the contracts | - | - | - | - | - | - | - | |||||||||||||||||||||
| Receivable from the fund manager | 0 | 1 | 0 | 0 | 0 | 1 | 1 | |||||||||||||||||||||
| Total receivables | 0 | 1 | 0 | 0 | 0 | 1 | 1 | |||||||||||||||||||||
| Total assets | 107 | 1,109 | 398 | 247 | 58 | 899 | 1,008 | |||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||
| Payable to the contracts | 0 | 1 | 0 | 0 | 0 | 1 | 1 | |||||||||||||||||||||
| Payable to the fund manager | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total liabilities | 0 | 1 | 0 | 0 | 0 | 1 | 1 | |||||||||||||||||||||
| NET ASSETS | $ | 107 | $ | 1,107 | $ | 398 | $ | 247 | $ | 58 | $ | 898 | $ | 1,006 | ||||||||||||||
| Fair value per share (NAV) | $ | 18.86 | $ | 11.04 | $ | 21.03 | $ | 6.96 | $ | 8.76 | $ | 5.59 | $ | 7.83 | ||||||||||||||
| Shares outstanding in the Separate Account | 6 | 100 | 19 | 35 | 7 | 161 | 129 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 104 | $ | 1,307 | $ | 243 | $ | 296 | $ | 61 | $ | 1,055 | $ | 1,650 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Continued)
See accompanying notes to the financial statements.
29
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2022
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| ($ in thousands) | 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 | Protective Life Dynamic Allocation Series - Moderate | |||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 1,489 | $ | 3,971 | $ | 1,270 | $ | 9,525 | $ | 1,676 | $ | 205 | $ | 514 | ||||||||||||||
| Receivable from the contracts | - | - | - | - | - | - | - | |||||||||||||||||||||
| Receivable from the fund manager | 2 | 5 | 1 | 12 | 2 | 0 | 1 | |||||||||||||||||||||
| Total receivables | 2 | 5 | 1 | 12 | 2 | 0 | 1 | |||||||||||||||||||||
| Total assets | 1,491 | 3,976 | 1,272 | 9,537 | 1,678 | 205 | 515 | |||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||
| Payable to the contracts | 2 | 5 | 1 | 12 | 2 | 0 | 1 | |||||||||||||||||||||
| Payable to the fund manager | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total liabilities | 2 | 5 | 1 | 12 | 2 | 0 | 1 | |||||||||||||||||||||
| NET ASSETS | $ | 1,489 | $ | 3,971 | $ | 1,270 | $ | 9,525 | $ | 1,676 | $ | 205 | $ | 514 | ||||||||||||||
| Fair value per share (NAV) | $ | 9.48 | $ | 11.50 | $ | 10.10 | $ | 8.98 | $ | 10.34 | $ | 12.15 | $ | 11.29 | ||||||||||||||
| Shares outstanding in the Separate Account | 157 | 345 | 126 | 1,061 | 162 | 17 | 46 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 1,648 | $ | 4,829 | $ | 1,285 | $ | 12,049 | $ | 1,827 | $ | 183 | $ | 510 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Continued)
See accompanying notes to the financial statements.
30
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2022
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| ($ in thousands) | Royce
Capital Fund Micro-Cap SC | Royce Capital Fund Small-Cap SC | T.
Rowe Price Blue Chip Growth Port II | T.
Rowe Price Health Sciences Port II | Templeton
Developing Markets VIP CL 2 | Templeton Foreign VIP CL 2 | Templeton Global Bond VIP Fund CL 2 | |||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 463 | $ | 1,785 | $ | 179 | $ | 201 | $ | 157 | $ | 1,957 | $ | 4,949 | ||||||||||||||
| Receivable from the contracts | - | - | - | - | - | - | - | |||||||||||||||||||||
| Receivable from the fund manager | 1 | 2 | 0 | 0 | 0 | 3 | 6 | |||||||||||||||||||||
| Total receivables | 1 | 2 | 0 | 0 | 0 | 3 | 6 | |||||||||||||||||||||
| Total assets | 463 | 1,787 | 179 | 202 | 157 | 1,959 | 4,956 | |||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||
| Payable to the contracts | 1 | 2 | 0 | 0 | 0 | 3 | 6 | |||||||||||||||||||||
| Payable to the fund manager | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total liabilities | 1 | 2 | 0 | 0 | 0 | 3 | 6 | |||||||||||||||||||||
| NET ASSETS | $ | 463 | $ | 1,785 | $ | 179 | $ | 201 | $ | 157 | $ | 1,957 | $ | 4,949 | ||||||||||||||
| Fair value per share (NAV) | $ | 7.49 | $ | 8.18 | $ | 29.23 | $ | 52.52 | $ | 7.46 | $ | 12.17 | $ | 12.48 | ||||||||||||||
| Shares outstanding in the Separate Account | 62 | 218 | 6 | 4 | 21 | 161 | 397 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 582 | $ | 2,011 | $ | 227 | $ | 200 | $ | 210 | $ | 2,178 | $ | 7,415 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Continued)
See accompanying notes to the financial statements.
31
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2022
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| ($ in thousands) | Templeton Growth VIP CL 2 | Vanguard VIF Capital Growth | Vanguard
VIF Conservative Allocation Port | Vanguard
VIF Equity Index | Vanguard
VIF Global Bond Index | Vanguard
VIF Growth | Vanguard
VIF International | |||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 105 | $ | 33 | $ | 35 | $ | 75 | $ | 33 | $ | 49 | $ | 22 | ||||||||||||||
| Receivable from the contracts | - | - | - | - | - | - | - | |||||||||||||||||||||
| Receivable from the fund manager | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Total receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Total assets | 105 | 33 | 35 | 75 | 33 | 49 | 22 | |||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||
| Payable to the contracts | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Payable to the fund manager | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| NET ASSETS | $ | 105 | $ | 33 | $ | 35 | $ | 75 | $ | 33 | $ | 49 | $ | 22 | ||||||||||||||
| Fair value per share (NAV) | $ | 10.24 | $ | 38.81 | $ | 22.75 | $ | 50.74 | $ | 17.83 | $ | 18.13 | $ | 22.52 | ||||||||||||||
| Shares outstanding in the Separate Account | 10 | 1 | 2 | 1 | 2 | 3 | 1 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 119 | $ | 34 | $ | 43 | $ | 85 | $ | 40 | $ | 75 | $ | 30 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Continued)
See accompanying notes to the financial statements.
32
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2022
| SUBACCOUNTS | ||||||||||||||||||||||||||||
| ($ in thousands) | Vanguard
VIF Mid-Cap Index | Vanguard
VIF Moderate Allocation Portfolio | Vanguard
VIF Real Estate Index | Vanguard
VIF Short Term Investment Grade | Vanguard
VIF Total Bond Market Index | Vanguard
VIF Total International Stock Market Index | Western Asset Core Plus VIT II | |||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||
| Investments at fair value (1) | $ | 78 | $ | 609 | $ | 22 | $ | 88 | $ | 113 | $ | 22 | $ | 217 | ||||||||||||||
| Receivable from the contracts | - | - | - | - | - | - | - | |||||||||||||||||||||
| Receivable from the fund manager | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Total receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Total assets | 78 | 609 | 22 | 88 | 113 | 22 | 218 | |||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||
| Payable to the contracts | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Payable to the fund manager | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| NET ASSETS | $ | 78 | $ | 609 | $ | 22 | $ | 88 | $ | 113 | $ | 22 | $ | 217 | ||||||||||||||
| Fair value per share (NAV) | $ | 21.38 | $ | 26.65 | $ | 11.53 | $ | 9.92 | $ | 10.32 | $ | 19.05 | $ | 4.83 | ||||||||||||||
| Shares outstanding in the Separate Account | 4 | 23 | 2 | 9 | 11 | 1 | 45 | |||||||||||||||||||||
| (1) Investments in mutual fund shares, at cost | $ | 91 | $ | 645 | $ | 27 | $ | 95 | $ | 130 | $ | 23 | $ | 238 | ||||||||||||||
Note: Totals and NAV may not appear to foot/crossfoot/calculate due to rounding.
(Concluded)
See accompanying notes to the financial statements.
33
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
| Note: Totals may not appear to foot/crossfoot due to rounding. |
| (Continued) |
See accompanying notes to the financial statements.
34
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
| Note: Totals may not appear to foot/crossfoot due to rounding. |
| (Continued) |
See accompanying notes to the financial statements.
35
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
| Note: Totals may not appear to foot/crossfoot due to rounding. |
| (Continued) |
See accompanying notes to the financial statements.
36
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
| Note: Totals may not appear to foot/crossfoot due to rounding. |
| (Continued) |
See accompanying notes to the financial statements.
37
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
| Note: Totals may not appear to foot/crossfoot due to rounding. |
| (Continued) |
See accompanying notes to the financial statements.
38
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
| Note: Totals may not appear to foot/crossfoot due to rounding. |
| (Continued) |
See accompanying notes to the financial statements.
39
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
| Note: Totals may not appear to foot/crossfoot due to rounding. |
| (Continued) |
See accompanying notes to the financial statements.
40
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
| Note: Totals may not appear to foot/crossfoot due to rounding. |
| (Continued) |
See accompanying notes to the financial statements.
41
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
| Note: Totals may not appear to foot/crossfoot due to rounding. |
| (Continued) |
See accompanying notes to the financial statements.
42
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
| Note: Totals may not appear to foot/crossfoot due to rounding. |
| (Continued) |
See accompanying notes to the financial statements.
43
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
| Note: Totals may not appear to foot/crossfoot due to rounding. |
| (Continued) |
See accompanying notes to the financial statements.
44
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
| Note: Totals may not appear to foot/crossfoot due to rounding. |
| (Continued) |
See accompanying notes to the financial statements.
45
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
| Note: Totals may not appear to foot/crossfoot due to rounding. |
| (Continued) |
See accompanying notes to the financial statements.
46
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
| Note: Totals may not appear to foot/crossfoot due to rounding. |
| (Continued) |
See accompanying notes to the financial statements.
47
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
| Note: Totals may not appear to foot/crossfoot due to rounding. |
| (Continued) |
See accompanying notes to the financial statements.
48
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
| Note: Totals may not appear to foot/crossfoot due to rounding. |
| (Continued) |
See accompanying notes to the financial statements.
49
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
| Note: Totals may not appear to foot/crossfoot due to rounding. |
| (Continued) |
See accompanying notes to the financial statements.
50
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
| Note: Totals may not appear to foot/crossfoot due to rounding. |
| (Continued) |
See accompanying notes to the financial statements.
51
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
| Note: Totals may not appear to foot/crossfoot due to rounding. |
| (Continued) |
See accompanying notes to the financial statements.
52
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
| Note: Totals may not appear to foot/crossfoot due to rounding. |
| (Concluded) |
See accompanying notes to the financial statements.
53
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
54
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
55
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
56
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
57
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
58
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
59
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
60
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
61
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
62
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
63
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
64
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
65
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
66
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
67
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
68
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
69
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
70
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
71
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
72
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
73
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
| ($ in thousands) | Western Asset Core Plus VIT II | |||
| INCREASE (DECREASE) IN NET ASSETS: | ||||
| OPERATIONS: | ||||
| Net investment income (loss) | $ | 3 | ||
| Net realized gain (loss) on investments | (0 | ) | ||
| Change in net unrealized appreciation (depreciation) on investments | (20 | ) | ||
| Net increase (decrease) in net assets resulting from operations | (17 | ) | ||
| CONTRACT TRANSACTIONS: | ||||
| Contract owners’ net payments | 170 | |||
| Contract maintenance charges | (1 | ) | ||
| Contract owners’ benefits | (3 | ) | ||
| Net transfers (to) from the Company and/or Subaccounts | 27 | |||
| Increase (decrease) in net assets resulting from Contract transactions | 193 | |||
| Total increase (decrease) in net assets | 175 | |||
| NET ASSETS: | ||||
| Beginning of period | 42 | |||
| End of period | $ | 217 | ||
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
74
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
75
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
76
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
77
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
78
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
79
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
80
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
81
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
82
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
83
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
84
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
85
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
86
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
87
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
88
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
89
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
90
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021
Note: Totals may not appear to foot/crossfoot due to rounding.
(Continued)
See accompanying notes to the financial statements.
91
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE OF
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021
Note: Totals may not appear to foot/crossfoot due to rounding.
(Concluded)
See accompanying notes to the financial statements.
92
VARIABLE ANNUITY ACCOUNT A OF PROTECTIVE LIFE
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES
TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2022
| 1. | ORGANIZATION |
The Variable Annuity Account A of Protective Life (the “Separate Account”), a segregated unit investment trust registered under the Investment Company Act of 1940, as amended, was established by Protective Life and Annuity Insurance Company on August 21, 1998 and exists in accordance with the regulations of the state of New York. Protective Life and Annuity Insurance Company (the “Company”) is a wholly owned subsidiary of Protective Life Insurance Company (“PLICO”). PLICO 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 payments 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:
| Access XL NY | Protective Variable Annuity NY |
| Elements Classic NY | Protective Variable Annuity NY (2012) L, B, C Series |
| Rewards Elite NY | Rewards II NY |
| Protective Aspirations NY | Protective Investors Benefit Advisory Variable Annuity NY |
| Protective Variable Annuity II B Series NY |
93
For the years or periods ended December 31, 2022 and 2021, the Separate Account was invested in up to one hundred and forty-one Subaccounts, as follows:
| AB VPS Large Cap Growth B (c) | Invesco V.I. Equity and Income II | |
| AB VPS Small Cap Growth B (c) | Invesco V.I. Global Fund I (a) | |
| AB VPS Small/Mid Cap Value B (c) | Invesco V.I. Global Fund II (a) | |
| American Funds IS Asset Allocation Class 4 | Invesco V.I. Global Real Estate II | |
| American Funds IS Capital Income Builder 4 | Invesco V.I. Global Strategic Income Fund I (a) | |
| American Funds IS Capital World Growth and Income Fund 4 | Invesco V.I. Global Strategic Income Fund II (a) | |
| American Funds IS Global Growth Class 4 | Invesco V.I. Government Securities II | |
| American Funds IS Global Small Capitalization Class 4 | Invesco V.I. Growth & Income I | |
| American Funds IS Growth Class 4 | Invesco V.I. Growth & Income II | |
| American Funds IS Growth-Income Class 4 (c) | Invesco V.I. EQV International Equity Fund II (a) | |
| American Funds IS International Class 4 (c) | Invesco V.I. Main Street Fund I (a) | |
| American Funds IS New World Class 4 | Invesco V.I. Main Street Fund II (a) | |
| American Funds IS The Bond Fund of America 4 (a) | Invesco V.I. Small Cap Equity II | |
| American Funds IS U.S. Government Securities Fund 4 (a) (c) | Invesco V.I. U.S. Government Money Fund I (a) | |
| American Funds IS Washington Mutual Investors Fund 4 (a) | Lord Abbett Bond Debenture VC | |
| Blackrock 60/40 Target Allocation ETF V.I. Fund (c) | Lord Abbett Calibrated Dividend Growth VC | |
| Blackrock Global Allocation V.I. III (c) | Lord Abbett Growth & Income VC | |
| ClearBridge Variable Large Cap Growth II (c) | Lord Abbett Growth Opportunities VC | |
| ClearBridge Variable Mid Cap II | Lord Abbett Mid Cap Stock VC | |
| ClearBridge Variable Small Cap Growth II | Lord Abbett Series Fundamental Equity VC | |
| Columbia VP Balanced 2 (c) | Lord Abbett Series Short Duration Inc VC | |
| Columbia VP Intermediate Bond 2 | MFS Growth Series IC | |
| Columbia VP Limited Duration Credit 2 (c) | MFS Growth Series SC | |
| Columbia VP Strategic Income 2 (c) | MFS Investors Trust IC | |
| DFA VA Global Bond (c) | MFS Investors Trust SC | |
| DFA VA International Small (c) | MFS New Discovery IC | |
| DFA VA International Value (c) | MFS New Discovery SC | |
| DFA VA Short-Term Fixed (c) | MFS Research IC | |
| DFA VA US Large Value (c) | MFS Research SC | |
| DFA VA US Targeted Value (c) | MFS Total Return IC | |
| Fidelity Contrafund Portfolio SC2 | MFS Total Return SC | |
| Fidelity Equity Income SC2 | MFS Utilities IC | |
| Fidelity Index 500 Portfolio SC2 | MFS Utilities SC | |
| Fidelity Investment Grade Bonds SC2 | MFS VIT II Emerging Markets Equity SC | |
| Fidelity Mid Cap SC2 | MFS VIT II International Value SC | |
| Fidelity VIP Asset Manager Service 2 | MFS VIT II MA Investors Growth Stock SC | |
| Fidelity VIP Balanced Service 2 (c) | MFS VIT Total Return Bond Series SC | |
| Fidelity VIP Fundsmanager 20% Service 2 (c) | MFS VIT Value SC |
94
| Fidelity VIP Fundsmanager 85% Service 2 (c) | Morgan Stanley VIF, Inc. Global Real Estate II | |
| Fidelity VIP Health Care Port Svc 2 (c) | PIMCO VIT All Asset Advisor | |
| Franklin Dynatech VIP Fund (a) | PIMCO VIT Global Diversified Allocation Portfolio | |
| Franklin Income VIP CL 2 | PIMCO VIT Long-Term US Government Advisor | |
| Franklin Multi-Asset Dynamic Multi-Strat VIT (a) (b) | PIMCO VIT Low Duration Advisor | |
| Franklin Mutual Shares VIP CL 2 | PIMCO VIT Real Return Advisor | |
| Franklin Rising Dividend VIP CL 2 | PIMCO VIT Short-Term Advisor | |
| Franklin Small Cap Value VIP CL 2 | PIMCO VIT Total Return Advisor | |
| Franklin Small-Mid Cap Growth VIP CL 2 | Protective Life Dynamic Allocation Series - Conservative | |
| Franklin US Government Securities VIP CL 2 | Protective Life Dynamic Allocation Series - Growth | |
| Goldman Sachs Global Trends Allocation Fund SC | Protective Life Dynamic Allocation Series - Moderate | |
| Goldman Sachs International Equity Insights | Royce Capital Fund Micro-Cap SC | |
| Goldman Sachs International Equity Insights SC | Royce Capital Fund Small-Cap SC | |
| Goldman Sachs Large Cap Value Fund SC | T. Rowe Price Blue Chip Growth Port II | |
| Goldman Sachs Mid Cap Value SC | T. Rowe Price Health Sciences Port II (c) | |
| Goldman Sachs Small Cap Equity Insights | Templeton Developing Markets VIP CL 2 | |
| Goldman Sachs Small Cap Equity Insights SC (c) | Templeton Foreign VIP CL 2 | |
| Goldman Sachs Strategic Growth | Templeton Global Bond VIP Fund CL 2 | |
| Goldman Sachs Strategic Growth SC | Templeton Growth VIP CL 2 | |
| Goldman Sachs US Equity Insights | Vanguard VIF Capital Growth (c) | |
| Goldman Sachs US Equity Insights SC | Vanguard VIF Conservative Allocation Port | |
| Goldman Sachs VIT Core Fixed Income Fund SC | Vanguard VIF Equity Index | |
| Goldman Sachs VIT Mid Cap Growth Fund SC (a) | Vanguard VIF Global Bond Index | |
| Invesco V.I. American Franchise I | Vanguard VIF Growth | |
| Invesco V.I. American Value II | Vanguard VIF International | |
| Invesco V.I. Balanced Risk Allocation II | Vanguard VIF Mid-Cap Index | |
| Invesco V.I. Capital Appreciation Fund I (a) | Vanguard VIF Moderate Allocation Port (c) | |
| Invesco V.I. Capital Appreciation Fund II (a) | Vanguard VIF Real Estate Index | |
| Invesco V.I. Comstock I | Vanguard VIF Short Term Investment Grade | |
| Invesco V.I. Comstock II | Vanguard VIF Total Bond Mkt Index | |
| Invesco V.I. Conservative Balance II (a) (c) | Vanguard VIF Total International Stock Mkt Index (c) | |
| Invesco V.I. Discovery Mid Cap Growth Fund I (a) | Western Asset Core Plus VIT II | |
| Invesco V.I. Discovery Mid Cap Growth Fund II (a) |
95
| (a) | See Subaccount Changes table below: |
Subaccount Changes
During 2021 and 2022, the following Subaccounts changed their names:
| Previous Name | New Name | Date | ||
| Invesco V.I. International Growth Fund II | Invesco V.I. EQV International Equity Fund II | April 22, 2022 | ||
| Goldman Sachs VIT Growth Opportunities Fund | Goldman Sachs VIT Mid Cap Growth Fund SC | April 29, 2022 | ||
| Invesco Oppenheimer VI Capital Appreciation Fund/VA | Invesco VI Capital Appreciation Fund I | April 30, 2021 | ||
| Invesco Oppenheimer VI Capital Appreciation Fund/VA SC | Invesco VI Capital Appreciation Fund II | April 30, 2021 | ||
| Invesco Oppenheimer VI Discovery Mid Cap Growth Fund/VA | Invesco VI Discovery Mid Cap Growth Fund I | April 30, 2021 | ||
| Invesco Oppenheimer VI Discovery Mid Cap Growth Fund II | Invesco VI Discovery Mid Cap Growth Fund II | April 30, 2021 | ||
| Invesco Oppenheimer VI Global Fund/VA | Invesco VI Global Fund I | April 30, 2021 | ||
| Invesco Oppenheimer VI Global Fund/VA SC | Invesco VI Global Fund II | April 30, 2021 | ||
| Invesco Oppenheimer VI Global Strategic Income Fund/VA | Invesco VI Global Strategic Income Fund I | April 30, 2021 | ||
| Invesco Oppenheimer VI Global Strategic Income Fund/VA SC | Invesco VI Global Strategic Income Fund II | April 30, 2021 | ||
| Invesco Oppenheimer VI Government Money Fund/VA | Invesco VI US Government Money Fund | April 30, 2021 | ||
| Invesco Oppenheimer VI Main Street Fund/VA | Invesco VI Main Street Fund I | April 30, 2021 | ||
| Invesco Oppenheimer VI Main Street Fund/VA SC | Invesco VI Main Street Fund II | April 30, 2021 | ||
| Invesco Oppenheimer VI Conservative Balance II | Invesco VI Conservative Balance II | April 30, 2021 | ||
| American Funds IS Global Growth Class 4 | American Funds IS Capital World Growth and Income Fund 4 | May 1, 2021 | ||
| American Funds IS Bond Class 4 | American Funds IS The Bond Fund of America 4 | May 1, 2021 | ||
| American Funds IS US Govt/AAA Rated Securities Class 4 | American Funds IS U.S. Government Securities Fund 4 | May 1, 2021 | ||
| American Funds IS Blue Chip Income & Growth Class 4 | American Funds IS Washington Mutual Investors Fund 4 | May 1, 2021 | ||
| Franklin Flex Cap Growth VIP CL 2. | Franklin Dynatech VIP Fund | May 1, 2021 | ||
| QS Legg Mason Dynamic Multi-Strategy VIT II | Franklin Multi-Asset Dynamic Multi-Strat VIT | August 7, 2021 |
| (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 2021 and 2022, the following Subaccounts commenced trading:
| Subaccount | Date | |
| American Funds IS International Class 4 | January 20, 2021 | |
| American Funds IS Growth-Income Class 4 | February 11, 2021 | |
| DFA VA International Small | July 16, 2021 | |
| DFA VA International Value | July 16, 2021 | |
| DFA VA Short-Term Fixed | July 16, 2021 | |
| DFA VA US Large Value | July 16, 2021 | |
| Blackrock Global Allocation V.I. III | September 8, 2021 | |
| DFA VA Global Bond | September 29, 2021 | |
| AB VPS Small Cap Growth B | November 9, 2021 | |
| AB VPS Small/Mid Cap Value B | November 9, 2021 | |
| AB VPS Large Cap Growth B | January 12, 2022 | |
| Blackrock 60/40 Target Allocation ETF V.I. Fund | January 12, 2022 | |
| Columbia VP Balanced 2 | January 12, 2022 | |
| Fidelity VIP Balanced Service 2 | January 12, 2022 | |
| T. Rowe Price Health Sciences Port II | January 31, 2022 | |
| Goldman Sachs Small Cap Equity Insights SC | April 26, 2022 | |
| Fidelity VIP Health Care Port Svc 2 | April 29, 2022 | |
| Vanguard VIF Capital Growth | April 29, 2022 | |
| Vanguard VIF Total International Stock Mkt Index | April 29, 2022 | |
| Fidelity VIP Fundsmanager 20% Service 2 | May 9, 2022 | |
| American Funds IS U.S. Government Securities Fund 4 | May 19, 2022 | |
| Columbia VP Limited Duration Credit 2 | May 31, 2022 | |
| Vanguard VIF Moderate Allocation Port | June 30, 2022 | |
| Columbia VP Strategic Income 2 | July 13, 2022 | |
| Invesco V.I Conservative Balance II | July 13, 2022 | |
| ClearBridge Variable Large Cap Growth II | December 9, 2022 | |
| DFA VA US Targeted Value | December 9, 2022 | |
| Fidelity VIP Fundsmanager 85% Service 2 | December 9, 2022 |
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.
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| 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.
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 for each product using the last-in-first-out (LIFO) basis) and capital gain distributions from the mutual funds.
97
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.
98
| 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:
99
100
* The Subaccount's activity did not round to one thousand
101
| 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 Large Cap Growth B | 16 | 1 | 15 | - | - | - | ||||||||||||||||||
| AB VPS Small Cap Growth B | 10 | 4 | 6 | 4 | 0 | * | 4 | |||||||||||||||||
| AB VPS Small/Mid Cap Value B | 5 | 1 | 4 | 13 | 1 | 13 | ||||||||||||||||||
| American Funds IS Asset Allocation Class 4 | 29 | 4 | 25 | 0 | * | 2 | (2 | ) | ||||||||||||||||
| American Funds IS Capital Income Builder 4 | 9 | 1 | 8 | 3 | - | 3 | ||||||||||||||||||
| American Funds IS Capital World Growth and Income Fund 4 | 0 | * | 0 | * | 0 | * | 0 | * | 0 | * | 0 | * | ||||||||||||
| American Funds IS Global Growth Class 4 | 4 | 2 | 2 | 0 | * | 3 | (3 | ) | ||||||||||||||||
| American Funds IS Global Small Capitalization Class 4 | 0 | * | 0 | * | 0 | * | 0 | * | 0 | * | (0 | )* | ||||||||||||
| American Funds IS Growth Class 4 | 3 | 0 | * | 3 | 1 | 1 | (1 | ) | ||||||||||||||||
| American Funds IS Growth-Income Class 4 | 1 | 10 | (9 | ) | 11 | 0 | * | 10 | ||||||||||||||||
| American Funds IS International Class 4 | 2 | 0 | * | 2 | 2 | 0 | * | 2 | ||||||||||||||||
| American Funds IS New World Class 4 | 21 | 0 | * | 21 | 1 | 0 | * | 1 | ||||||||||||||||
| American Funds IS The Bond Fund of America 4 | 2 | 1 | 1 | 9 | 0 | * | 9 | |||||||||||||||||
| American Funds IS U.S. Government Securities Fund 4 | 11 | 0 | * | 11 | - | - | - | |||||||||||||||||
| American Funds IS Washington Mutual Investors Fund 4 | 10 | 2 | 8 | 0 | * | 1 | (1 | ) | ||||||||||||||||
| Blackrock 60/40 Target Allocation ETF V.I. Fund | 24 | 1 | 23 | - | - | - | ||||||||||||||||||
| Blackrock Global Allocation V.I. III | 3 | 0 | * | 3 | 2 | 0 | * | 2 | ||||||||||||||||
| ClearBridge Variable Large Cap Growth II | 1 | - | 1 | - | - | - | ||||||||||||||||||
| ClearBridge Variable Mid Cap II | 59 | 87 | (28 | ) | 2 | 12 | (11 | ) | ||||||||||||||||
| ClearBridge Variable Small Cap Growth II | 23 | 27 | (4 | ) | 6 | 19 | (14 | ) | ||||||||||||||||
| Columbia VP Balanced 2 | 32 | 2 | 30 | - | - | - | ||||||||||||||||||
| Columbia VP Intermediate Bond 2 | 28 | 2 | 26 | 3 | - | 3 | ||||||||||||||||||
| Columbia VP Limited Duration Credit 2 | 2 | 0 | * | 2 | - | - | - | |||||||||||||||||
| Columbia VP Strategic Income 2 | 1 | 0 | * | 1 | - | - | - | |||||||||||||||||
| DFA VA Global Bond | 1 | 0 | * | 1 | 2 | 0 | * | 2 | ||||||||||||||||
| DFA VA International Small | 1 | 0 | * | 1 | 0 | * | 0 | * | 0 | * | ||||||||||||||
| DFA VA International Value | 9 | 9 | - | 19 | 1 | 19 | ||||||||||||||||||
| DFA VA Short-Term Fixed | 1 | 0 | * | 1 | 7 | 0 | * | 7 | ||||||||||||||||
| DFA VA US Large Value | 7 | 7 | - | 21 | 1 | 21 | ||||||||||||||||||
| DFA VA US Targeted Value | 1 | 0 | * | 1 | - | - | - | |||||||||||||||||
| Fidelity Contrafund Portfolio SC2 | 237 | 333 | (96 | ) | 12 | 46 | (34 | ) | ||||||||||||||||
| Fidelity Equity Income SC2 | 0 | * | 4 | (4 | ) | 0 | * | 1 | (1 | ) | ||||||||||||||
| Fidelity Index 500 Portfolio SC2 | 252 | 333 | (81 | ) | 11 | 46 | (35 | ) | ||||||||||||||||
| Fidelity Investment Grade Bonds SC2 | 53 | 64 | (11 | ) | 52 | 36 | 16 | |||||||||||||||||
| Fidelity Mid Cap SC2 | 156 | 229 | (73 | ) | 17 | 53 | (36 | ) | ||||||||||||||||
| Fidelity VIP Asset Manager Service 2 | 0 | * | 0 | * | (0 | )* | 0 | * | 0 | * | 0 | * | ||||||||||||
| Fidelity VIP Balanced Service 2 | 59 | 6 | 53 | - | - | - | ||||||||||||||||||
| Fidelity VIP Fundsmanager 20% Service 2 | 2 | 0 | * | 2 | - | - | - | |||||||||||||||||
| Fidelity VIP Fundsmanager 85% Service 2 | 1 | - | 1 | - | - | - | ||||||||||||||||||
| Fidelity VIP Health Care Port Svc 2 | 2 | 0 | * | 2 | - | - | - | |||||||||||||||||
| Franklin Dynatech VIP Fund | 33 | 44 | (11 | ) | 7 | 17 | (11 | ) | ||||||||||||||||
| Franklin Income VIP CL 2 | 257 | 429 | (172 | ) | 8 | 43 | (35 | ) | ||||||||||||||||
| Franklin Multi-Asset Dynamic Multi-Strat VIT | 7 | 549 | (542 | ) | 20 | 95 | (76 | ) | ||||||||||||||||
| Franklin Mutual Shares VIP CL 2 | 245 | 367 | (122 | ) | 10 | 53 | (42 | ) | ||||||||||||||||
| Franklin Rising Dividend VIP CL 2 | 268 | 297 | (29 | ) | 5 | 35 | (30 | ) | ||||||||||||||||
| Franklin Small Cap Value VIP CL 2 | 48 | 60 | (12 | ) | 7 | 12 | (5 | ) | ||||||||||||||||
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| (in thousands) | 2022 | 2021 | ||||||||||||||||||||||
| Subaccount | Units Issued | Units Redeemed | Net Increase (Decrease) | Units Issued | Units Redeemed | Net Increase (Decrease) | ||||||||||||||||||
| Franklin Small-Mid Cap Growth VIP CL 2 | 45 | 51 | (6 | ) | 1 | 13 | (12 | ) | ||||||||||||||||
| Franklin US Government Securities VIP CL 2 | 50 | 66 | (16 | ) | 50 | 51 | (1 | ) | ||||||||||||||||
| Goldman Sachs Global Trends Allocation Fund SC | 9 | 1 | 8 | 1 | 1 | (0 | )* | |||||||||||||||||
| Goldman Sachs International Equity Insights | 0 | * | 0 | * | (0 | )* | - | 0 | * | (0 | )* | |||||||||||||
| Goldman Sachs International Equity Insights SC | 44 | 54 | (10 | ) | 7 | 19 | (12 | ) | ||||||||||||||||
| Goldman Sachs Large Cap Value Fund SC | 4 | 11 | (7 | ) | 2 | 7 | (6 | ) | ||||||||||||||||
| Goldman Sachs Mid Cap Value SC | 104 | 144 | (40 | ) | 19 | 28 | (9 | ) | ||||||||||||||||
| Goldman Sachs Small Cap Equity Insights | 0 | * | 0 | * | (0 | )* | - | - | - | |||||||||||||||
| Goldman Sachs Small Cap Equity Insights SC | 2 | 0 | * | 2 | - | - | - | |||||||||||||||||
| Goldman Sachs Strategic Growth | 0 | * | 0 | * | (0 | )* | - | 0 | * | (0 | )* | |||||||||||||
| Goldman Sachs Strategic Growth SC | 126 | 175 | (49 | ) | 9 | 26 | (17 | ) | ||||||||||||||||
| Goldman Sachs US Equity Insights | 0 | * | 0 | * | (0 | )* | - | 0 | * | (0 | )* | |||||||||||||
| Goldman Sachs US Equity Insights SC | 0 | * | 0 | * | (0 | )* | - | 0 | * | (0 | )* | |||||||||||||
| Goldman Sachs VIT Core Fixed Income Fund SC | 9 | 6 | 3 | 6 | 4 | 2 | ||||||||||||||||||
| Goldman Sachs VIT Mid Cap Growth Fund SC | 13 | 17 | (4 | ) | 1 | 2 | (1 | ) | ||||||||||||||||
| Invesco V.I. American Franchise I | 0 | * | 0 | * | (0 | )* | 0 | * | 1 | (1 | ) | |||||||||||||
| Invesco V.I. American Value II | 11 | 11 | - | 15 | 18 | (3 | ) | |||||||||||||||||
| Invesco V.I. Balanced Risk Allocation II | 87 | 113 | (26 | ) | 10 | 106 | (97 | ) | ||||||||||||||||
| Invesco V.I. Capital Appreciation Fund I | 0 | * | 0 | * | (0 | )* | - | 0 | * | (0 | )* | |||||||||||||
| Invesco V.I. Capital Appreciation Fund II | 34 | 46 | (12 | ) | 1 | 4 | (3 | ) | ||||||||||||||||
| Invesco V.I. Comstock I | 0 | * | 0 | * | (0 | )* | 0 | * | 0 | * | (0 | )* | ||||||||||||
| Invesco V.I. Comstock II | 45 | 34 | 11 | 4 | 6 | (2 | ) | |||||||||||||||||
| Invesco V.I. Conservative Balance II | 1 | 0 | * | 1 | - | - | - | |||||||||||||||||
| Invesco V.I. Discovery Mid Cap Growth Fund I | 0 | * | 0 | * | (0 | )* | - | 0 | * | (0 | )* | |||||||||||||
| Invesco V.I. Discovery Mid Cap Growth Fund II | 31 | 42 | (11 | ) | 52 | 58 | (6 | ) | ||||||||||||||||
| Invesco V.I. Equity and Income II | 86 | 115 | (29 | ) | 4 | 21 | (17 | ) | ||||||||||||||||
| Invesco V.I. Global Fund I | 0 | * | 0 | * | (0 | )* | - | 0 | * | (0 | )* | |||||||||||||
| Invesco V.I. Global Fund II | 140 | 188 | (48 | ) | 6 | 18 | (12 | ) | ||||||||||||||||
| Invesco V.I. Global Real Estate II | 79 | 103 | (24 | ) | 3 | 21 | (17 | ) | ||||||||||||||||
| Invesco V.I. Global Strategic Income Fund I | 0 | * | 0 | * | (0 | )* | - | 0 | * | (0 | )* | |||||||||||||
| Invesco V.I. Global Strategic Income Fund II | 26 | 46 | (20 | ) | 54 | 44 | 10 | |||||||||||||||||
| Invesco V.I. Government Securities II | 35 | 9 | 26 | 5 | 32 | (27 | ) | |||||||||||||||||
| Invesco V.I. Growth & Income I | 0 | * | 0 | * | (0 | )* | 0 | * | 1 | (1 | ) | |||||||||||||
| Invesco V.I. Growth & Income II | 307 | 402 | (95 | ) | 45 | 77 | (32 | ) | ||||||||||||||||
| Invesco V.I. EQV International Equity Fund II | 33 | 47 | (14 | ) | 28 | 23 | 5 | |||||||||||||||||
| Invesco V.I. Main Street Fund I | 0 | * | 0 | * | (0 | )* | - | 0 | * | (0 | )* | |||||||||||||
| Invesco V.I. Main Street Fund II | 44 | 65 | (21 | ) | 3 | 9 | (7 | ) | ||||||||||||||||
| Invesco V.I. Small Cap Equity II | 4 | 7 | (3 | ) | 7 | 6 | 2 | |||||||||||||||||
| Invesco V.I. U.S. Government Money Fund I | 32,999 | 25,360 | 7,639 | 1,570 | 690 | 880 | ||||||||||||||||||
| Lord Abbett Bond Debenture VC | 21 | 52 | (31 | ) | 42 | 54 | (13 | ) | ||||||||||||||||
| Lord Abbett Calibrated Dividend Growth VC | 25 | 35 | (10 | ) | 1 | 14 | (12 | ) | ||||||||||||||||
| Lord Abbett Growth & Income VC | 0 | * | 3 | (3 | ) | 2 | 3 | (1 | ) | |||||||||||||||
| Lord Abbett Growth Opportunities VC | 45 | 48 | (3 | ) | 3 | 13 | (10 | ) | ||||||||||||||||
| Lord Abbett Mid Cap Stock VC | 3 | 6 | (3 | ) | 4 | 4 | 0 | * | ||||||||||||||||
| Lord Abbett Series Fundamental Equity VC | 131 | 191 | (60 | ) | 1 | 27 | (27 | ) | ||||||||||||||||
| Lord Abbett Series Short Duration Inc VC | 1 | 1 | - | 1 | - | 1 | ||||||||||||||||||
| MFS Growth Series IC | 0 | * | 0 | * | (0 | )* | 0 | * | 0 | * | (0 | )* | ||||||||||||
| MFS Growth Series SC | 1 | 0 | * | 1 | 1 | 2 | (1 | ) | ||||||||||||||||
| MFS Investors Trust IC | 0 | * | 0 | * | (0 | )* | - | 0 | * | (0 | )* | |||||||||||||
| MFS Investors Trust SC | 0 | * | 2 | (2 | ) | 0 | * | 2 | (2 | ) | ||||||||||||||
| MFS New Discovery IC | 0 | * | 0 | * | 0 | * | - | 0 | * | (0 | )* | |||||||||||||
| MFS New Discovery SC | 4 | 1 | 3 | 1 | 3 | (2 | ) | |||||||||||||||||
| MFS Research IC | 0 | * | 0 | * | (0 | )* | - | - | - | |||||||||||||||
| MFS Research SC | 0 | * | 0 | * | (0 | )* | 0 | * | 0 | * | (0 | )* | ||||||||||||
103
| (in thousands) | 2022 | 2021 | ||||||||||||||||||||||
| Subaccount | Units Issued | Units Redeemed | Net Increase (Decrease) | Units Issued | Units Redeemed | Net Increase (Decrease) | ||||||||||||||||||
| MFS Total Return IC | 0 | * | 0 | * | (0 | )* | 0 | * | 0 | * | (0 | )* | ||||||||||||
| MFS Total Return SC | 0 | * | 1 | (1 | ) | 0 | * | 1 | (1 | ) | ||||||||||||||
| MFS Utilities IC | 0 | * | 0 | * | (0 | )* | - | - | - | |||||||||||||||
| MFS Utilities SC | 0 | * | 1 | (1 | ) | 0 | * | 1 | (0 | )* | ||||||||||||||
| MFS VIT II Emerging Markets Equity SC | 0 | * | 0 | * | (0 | )* | - | 0 | * | (0 | )* | |||||||||||||
| MFS VIT II International Value SC | 0 | * | 0 | * | 0 | * | 0 | * | 0 | * | (0 | )* | ||||||||||||
| MFS VIT II MA Investors Growth Stock SC | 0 | * | 1 | (1 | ) | 0 | * | 1 | (1 | ) | ||||||||||||||
| MFS VIT Total Return Bond Series SC | 6 | 13 | (7 | ) | 13 | 9 | 4 | |||||||||||||||||
| MFS VIT Value SC | 0 | * | 3 | (3 | ) | 0 | * | 3 | (3 | ) | ||||||||||||||
| Morgan Stanley VIF, Inc. Global Real Estate II | 5 | 9 | (4 | ) | 0 | * | 5 | (4 | ) | |||||||||||||||
| PIMCO VIT All Asset Advisor | 22 | 38 | (16 | ) | 0 | * | 3 | (2 | ) | |||||||||||||||
| PIMCO VIT Global Diversified Allocation Portfolio | 57 | 47 | 10 | 4 | 11 | (7 | ) | |||||||||||||||||
| PIMCO VIT Long-Term US Government Advisor | 16 | 12 | 4 | 15 | 27 | (11 | ) | |||||||||||||||||
| PIMCO VIT Low Duration Advisor | 9 | 28 | (19 | ) | 16 | 28 | (12 | ) | ||||||||||||||||
| PIMCO VIT Real Return Advisor | 31 | 68 | (37 | ) | 64 | 65 | (1 | ) | ||||||||||||||||
| PIMCO VIT Short-Term Advisor | 12 | 35 | (23 | ) | 16 | 19 | (3 | ) | ||||||||||||||||
| PIMCO VIT Total Return Advisor | 83 | 131 | (48 | ) | 159 | 106 | 53 | |||||||||||||||||
| Protective Life Dynamic Allocation Series - Conservative | 104 | 9 | 95 | 1 | 1 | (0 | )* | |||||||||||||||||
| Protective Life Dynamic Allocation Series - Growth | 0 | * | 1 | (1 | ) | 4 | 2 | 2 | ||||||||||||||||
| Protective Life Dynamic Allocation Series - Moderate | 0 | * | 3 | (3 | ) | 6 | 3 | 3 | ||||||||||||||||
| Royce Capital Fund Micro-Cap SC | 40 | 60 | (20 | ) | 10 | 23 | (13 | ) | ||||||||||||||||
| Royce Capital Fund Small-Cap SC | 202 | 224 | (22 | ) | 11 | 43 | (32 | ) | ||||||||||||||||
| T. Rowe Price Blue Chip Growth Port II | 39 | 17 | 22 | 3 | 0 | * | 3 | |||||||||||||||||
| T. Rowe Price Health Sciences Port II | 24 | 3 | 21 | - | - | - | ||||||||||||||||||
| Templeton Developing Markets VIP CL 2 | 118 | 119 | (1 | ) | 49 | 88 | (39 | ) | ||||||||||||||||
| Templeton Foreign VIP CL 2 | 140 | 123 | 17 | 33 | 79 | (46 | ) | |||||||||||||||||
| Templeton Global Bond VIP Fund CL 2 | 33 | 107 | (74 | ) | 105 | 69 | 36 | |||||||||||||||||
| Templeton Growth VIP CL 2 | 31 | 29 | 2 | 10 | 23 | (13 | ) | |||||||||||||||||
| Vanguard VIF Capital Growth | 3 | 0 | * | 3 | - | - | - | |||||||||||||||||
| Vanguard VIF Conservative Allocation Port | - | 0 | * | - | 4 | - | 4 | |||||||||||||||||
| Vanguard VIF Equity Index | 2 | 0 | * | 2 | 4 | 0 | * | 4 | ||||||||||||||||
| Vanguard VIF Global Bond Index | 0 | * | 0 | * | (0 | )* | 4 | - | 4 | |||||||||||||||
| Vanguard VIF Growth | 2 | 0 | * | 2 | 3 | 0 | * | 3 | ||||||||||||||||
| Vanguard VIF International | 1 | 0 | * | 1 | 1 | - | 1 | |||||||||||||||||
| Vanguard VIF Mid-Cap Index | 4 | 0 | * | 4 | 3 | 0 | * | 3 | ||||||||||||||||
| Vanguard VIF Moderate Allocation Portfolio | 59 | 0 | * | 59 | - | - | - | |||||||||||||||||
| Vanguard VIF Real Estate Index | 1 | 0 | * | 1 | 1 | - | 1 | |||||||||||||||||
| Vanguard VIF Short Term Investment Grade | 1 | 0 | * | 1 | 8 | 0 | * | 8 | ||||||||||||||||
| Vanguard VIF Total Bond Market Index | 3 | 0 | * | 3 | 10 | 0 | * | 10 | ||||||||||||||||
| Vanguard VIF Total International Stock Market Index | 2 | 0 | * | 2 | - | - | - | |||||||||||||||||
| Western Asset Core Plus VIT II | 23 | 1 | 22 | 4 | - | 4 | ||||||||||||||||||
* The Subaccount's activity did not round to one thousand
104
| 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.
105
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.
106
| 6. | 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 or periods 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 Large Cap Growth B | |||||||||||||||||||||||||||||||||||||
| 2022 | 15 | $ | 9.27 | $ | 9.27 | $ | 138 | 0.00 | % | 1.30 | % | 1.30 | % | (29.61 | )% | (29.61 | )% | ||||||||||||||||||||
| 2021 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| AB VPS Small Cap Growth B | |||||||||||||||||||||||||||||||||||||
| 2022 | 10 | 6.45 | 6.45 | 64 | 0.00 | % | 0.30 | % | 0.30 | % | (39.45 | )% | (39.45 | )% | |||||||||||||||||||||||
| 2021 | 4 | 10.65 | 10.65 | 45 | 0.00 | % | 0.30 | % | 0.30 | % | (8.96 | )% | (8.96 | )% | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| AB VPS Small/Mid Cap Value B | |||||||||||||||||||||||||||||||||||||
| 2022 | 17 | 9.60 | 9.60 | 160 | 0.70 | % | 0.30 | % | 0.30 | % | (16.07 | )% | (16.07 | )% | |||||||||||||||||||||||
| 2021 | 13 | 11.44 | 11.44 | 143 | 0.00 | % | 0.30 | % | 0.30 | % | (1.49 | )% | (1.49 | )% | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
107
| 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 Asset Allocation Class 4 | |||||||||||||||||||||||||||||||||||||
| 2022 | 50 | $ | 14.44 | $ | 14.44 | $ | 719 | 2.11 | % | 1.30 | % | 1.30 | % | (14.78 | )% | (14.78 | )% | ||||||||||||||||||||
| 2021 | 24 | 16.95 | 16.95 | 413 | 1.33 | % | 1.30 | % | 1.30 | % | 13.35 | % | 13.35 | % | |||||||||||||||||||||||
| 2020 | 26 | 14.95 | 14.95 | 395 | 1.40 | % | 1.30 | % | 1.30 | % | 10.70 | % | 10.70 | % | |||||||||||||||||||||||
| 2019 | 27 | 13.51 | 13.51 | 362 | 1.74 | % | 1.30 | % | 1.30 | % | 19.36 | % | 19.36 | % | |||||||||||||||||||||||
| 2018 | 28 | 11.32 | 11.32 | 314 | 1.53 | % | 1.30 | % | 1.30 | % | (6.08 | )% | (6.08 | )% | |||||||||||||||||||||||
| American Funds IS Capital Income Builder 4 | |||||||||||||||||||||||||||||||||||||
| 2022 | 11 | 12.09 | 12.09 | 137 | 3.38 | % | 1.30 | % | 1.30 | % | (8.58 | )% | (8.58 | )% | |||||||||||||||||||||||
| 2021 | 3 | 13.23 | 13.23 | 44 | 13.92 | % | 1.30 | % | 1.30 | % | 5.61 | % | 5.61 | % | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| American Funds IS Capital World Growth and Income Fund 4 | |||||||||||||||||||||||||||||||||||||
| 2022 | 3 | 13.15 | 13.15 | 44 | 2.06 | % | 1.30 | % | 1.30 | % | (18.64 | )% | (18.64 | )% | |||||||||||||||||||||||
| 2021 | 3 | 16.16 | 16.16 | 52 | 1.50 | % | 1.30 | % | 1.30 | % | 12.98 | % | 12.98 | % | |||||||||||||||||||||||
| 2020 | 3 | 14.30 | 14.30 | 44 | 1.55 | % | 1.30 | % | 1.30 | % | 7.14 | % | 7.14 | % | |||||||||||||||||||||||
| 2019 | - | 13.35 | 13.35 | 3 | 2.73 | % | 1.30 | % | 1.30 | % | 29.03 | % | 29.03 | % | |||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| American Funds IS Global Growth Class 4 | |||||||||||||||||||||||||||||||||||||
| 2022 | 19 | 10.30 | 16.04 | 290 | 0.42 | % | 0.30 | % | 1.30 | % | (25.14 | )% | (25.89 | )% | |||||||||||||||||||||||
| 2021 | 17 | 13.76 | 21.64 | 350 | 0.21 | % | 0.30 | % | 1.30 | % | 15.79 | % | 14.63 | % | |||||||||||||||||||||||
| 2020 | 9 | 11.88 | 18.88 | 365 | 0.15 | % | 0.30 | % | 1.30 | % | 28.48 | % | 28.48 | % | |||||||||||||||||||||||
| 2019 | 21 | 14.69 | 14.69 | 310 | 0.93 | % | 1.30 | % | 1.30 | % | 33.12 | % | 33.12 | % | |||||||||||||||||||||||
| 2018 | 24 | 11.04 | 11.04 | 266 | 0.53 | % | 1.30 | % | 1.30 | % | (10.42 | )% | (10.42 | )% | |||||||||||||||||||||||
| American Funds IS Global Small Capitalization Class 4 | |||||||||||||||||||||||||||||||||||||
| 2022 | 1 | 11.66 | 11.66 | 10 | 0.00 | % | 1.30 | % | 1.30 | % | (30.60 | )% | (30.60 | )% | |||||||||||||||||||||||
| 2021 | 1 | 16.80 | 16.80 | 11 | 0.00 | % | 1.30 | % | 1.30 | % | 5.04 | % | 5.04 | % | |||||||||||||||||||||||
| 2020 | 1 | 15.99 | 15.99 | 11 | 0.12 | % | 1.30 | % | 1.30 | % | 27.71 | % | 27.71 | % | |||||||||||||||||||||||
| 2019 | 1 | 12.52 | 12.52 | 9 | 0.01 | % | 1.30 | % | 1.30 | % | 29.54 | % | 29.54 | % | |||||||||||||||||||||||
| 2018 | 1 | 9.67 | 9.67 | 7 | 0.02 | % | 1.30 | % | 1.30 | % | (11.97 | )% | (11.97 | )% | |||||||||||||||||||||||
108
| 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 4 | |||||||||||||||||||||||||||||||||||||
| 2022 | 9 | $ | 21.19 | $ | 21.19 | $ | 182 | 0.10 | % | 1.30 | % | 1.30 | % | (31.02 | )% | (31.02 | )% | ||||||||||||||||||||
| 2021 | 6 | 30.73 | 30.73 | 179 | 0.06 | % | 1.30 | % | 1.30 | % | 20.10 | % | 20.10 | % | |||||||||||||||||||||||
| 2020 | 7 | 25.58 | 25.58 | 168 | 0.21 | % | 1.30 | % | 1.30 | % | 49.75 | % | 49.75 | % | |||||||||||||||||||||||
| 2019 | 9 | 17.09 | 17.09 | 146 | 0.58 | % | 1.30 | % | 1.30 | % | 28.75 | % | 28.75 | % | |||||||||||||||||||||||
| 2018 | 9 | 13.27 | 13.27 | 116 | 0.28 | % | 1.30 | % | 1.30 | % | (1.80 | )% | (1.80 | )% | |||||||||||||||||||||||
| American Funds IS Growth-Income Class 4 | |||||||||||||||||||||||||||||||||||||
| 2022 | 1 | 15.32 | 15.32 | 20 | 0.30 | % | 1.30 | % | 1.30 | % | (17.79 | )% | (17.79 | )% | |||||||||||||||||||||||
| 2021 | 10 | 14.18 | 14.18 | 146 | 1.14 | % | 0.30 | % | 0.30 | % | 0.52 | % | 0.52 | % | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| American Funds IS International Class 4 | |||||||||||||||||||||||||||||||||||||
| 2022 | 3 | 10.08 | 10.08 | 34 | 1.79 | % | 1.30 | % | 1.30 | % | (22.05 | )% | (22.05 | )% | |||||||||||||||||||||||
| 2021 | 2 | 12.93 | 12.93 | 20 | 2.49 | % | 1.30 | % | 1.30 | % | (6.85 | )% | (6.85 | )% | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| American Funds IS New World Class 4 | |||||||||||||||||||||||||||||||||||||
| 2022 | 23 | 9.91 | 12.39 | 239 | 0.28 | % | 0.30 | % | 1.30 | % | (22.49 | )% | (23.26 | )% | |||||||||||||||||||||||
| 2021 | 2 | 16.15 | 16.15 | 31 | 0.97 | % | 1.30 | % | 1.30 | % | 3.27 | % | 3.27 | % | |||||||||||||||||||||||
| 2020 | 1 | 15.64 | 15.64 | 11 | 0.04 | % | 1.30 | % | 1.30 | % | 21.69 | % | 21.69 | % | |||||||||||||||||||||||
| 2019 | 1 | 12.85 | 12.85 | 9 | 0.76 | % | 1.30 | % | 1.30 | % | 27.14 | % | 27.14 | % | |||||||||||||||||||||||
| 2018 | 1 | 10.11 | 10.11 | 8 | 0.73 | % | 1.30 | % | 1.30 | % | (15.37 | )% | (15.37 | )% | |||||||||||||||||||||||
| American Funds IS The Bond Fund of America 4 | |||||||||||||||||||||||||||||||||||||
| 2022 | 12 | 9.71 | 9.71 | 116 | 2.69 | % | 1.30 | % | 1.30 | % | (13.88 | )% | (13.88 | )% | |||||||||||||||||||||||
| 2021 | 11 | 11.28 | 11.28 | 120 | 1.96 | % | 1.30 | % | 1.30 | % | (1.88 | )% | (1.88 | )% | |||||||||||||||||||||||
| 2020 | 2 | 11.49 | 11.49 | 23 | 2.07 | % | 1.30 | % | 1.30 | % | 7.96 | % | 7.96 | % | |||||||||||||||||||||||
| 2019 | 2 | 10.65 | 10.65 | 20 | 2.42 | % | 1.30 | % | 1.30 | % | 7.66 | % | 7.66 | % | |||||||||||||||||||||||
| 2018 | 2 | 9.89 | 9.89 | 20 | 3.81 | % | 1.30 | % | 1.30 | % | (2.18 | )% | (2.18 | )% | |||||||||||||||||||||||
109
| 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 4 | |||||||||||||||||||||||||||||||||||||
| 2022 | 10 | $ | 9.45 | $ | 9.45 | $ | 98 | 7.31 | % | 1.30 | % | 1.30 | % | (12.35 | )% | (12.35 | )% | ||||||||||||||||||||
| 2021 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| American Funds IS Washington Mutual Investors Fund 4 | |||||||||||||||||||||||||||||||||||||
| 2022 | 17 | 16.46 | 16.46 | 275 | 2.18 | % | 1.30 | % | 1.30 | % | (9.87 | )% | (9.87 | )% | |||||||||||||||||||||||
| 2021 | 8 | 18.26 | 18.26 | 155 | 1.27 | % | 1.30 | % | 1.30 | % | 25.86 | % | 25.86 | % | |||||||||||||||||||||||
| 2020 | 9 | 14.51 | 14.51 | 133 | 1.63 | % | 1.30 | % | 1.30 | % | 7.06 | % | 7.06 | % | |||||||||||||||||||||||
| 2019 | 6 | 13.55 | 13.55 | 86 | 1.92 | % | 1.30 | % | 1.30 | % | 19.46 | % | 19.46 | % | |||||||||||||||||||||||
| 2018 | 6 | 11.35 | 11.35 | 74 | 1.86 | % | 1.30 | % | 1.30 | % | (10.11 | )% | (10.11 | )% | |||||||||||||||||||||||
| Blackrock 60/40 Target Allocation ETF V.I. Fund | |||||||||||||||||||||||||||||||||||||
| 2022 | 23 | 9.20 | 9.20 | 207 | 3.90 | % | 1.30 | % | 1.30 | % | (16.14 | )% | (16.14 | )% | |||||||||||||||||||||||
| 2021 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Blackrock Global Allocation V.I. III | |||||||||||||||||||||||||||||||||||||
| 2022 | 5 | 8.69 | 8.69 | 40 | 0.00 | % | 1.30 | % | 1.30 | % | (17.16 | )% | (17.16 | )% | |||||||||||||||||||||||
| 2021 | 2 | 10.49 | 10.49 | 21 | 0.66 | % | 1.30 | % | 1.30 | % | (1.01 | )% | 1.57 | % | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| ClearBridge Variable Large Cap Growth II | |||||||||||||||||||||||||||||||||||||
| 2022 | 1 | 8.28 | 8.28 | 6 | 0.00 | % | 1.30 | % | 1.30 | % | (33.29 | )% | (33.29 | )% | |||||||||||||||||||||||
| 2021 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
110
| 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 II | |||||||||||||||||||||||||||||||||||||
| 2022 | 8 | $ | 29.12 | $ | 20.77 | $ | 207 | 0.03 | % | 1.15 | % | 1.75 | % | (26.36 | )% | (26.80 | )% | ||||||||||||||||||||
| 2021 | 37 | 39.54 | 28.37 | 1,161 | 0.03 | % | 1.15 | % | 1.75 | % | 75.80 | % | (8.93 | )% | |||||||||||||||||||||||
| 2020 | 47 | 22.49 | 31.16 | 1,187 | 0.03 | % | 1.15 | % | 1.75 | % | 13.09 | % | 13.78 | % | |||||||||||||||||||||||
| 2019 | 59 | 19.89 | 27.38 | 1,292 | 0.58 | % | 1.15 | % | 1.75 | % | 30.33 | % | 31.13 | % | |||||||||||||||||||||||
| 2018 | 11 | 15.26 | 20.88 | 212 | 0.05 | % | 1.15 | % | 1.75 | % | (14.33 | )% | (13.81 | )% | |||||||||||||||||||||||
| ClearBridge Variable Small Cap Growth II | |||||||||||||||||||||||||||||||||||||
| 2022 | 4 | 38.59 | 26.34 | 122 | 0.00 | % | 1.15 | % | 1.75 | % | (29.82 | )% | (30.25 | )% | |||||||||||||||||||||||
| 2021 | 7 | 54.98 | 37.77 | 315 | 0.00 | % | 1.15 | % | 1.75 | % | 60.64 | % | (23.74 | )% | |||||||||||||||||||||||
| 2020 | 47 | 34.23 | 49.52 | 792 | 0.00 | % | 1.15 | % | 1.75 | % | 40.42 | % | 41.27 | % | |||||||||||||||||||||||
| 2019 | 24 | 24.38 | 35.42 | 672 | 0.00 | % | 1.05 | % | 1.75 | % | 24.34 | % | 25.22 | % | |||||||||||||||||||||||
| 2018 | 10 | 19.60 | 28.29 | 257 | 0.00 | % | 1.05 | % | 1.75 | % | 1.39 | % | 2.12 | % | |||||||||||||||||||||||
| Columbia VP Balanced 2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 30 | 9.11 | 9.11 | 276 | 0.00 | % | 1.30 | % | 1.30 | % | (17.94 | )% | (17.94 | )% | |||||||||||||||||||||||
| 2021 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Columbia VP Intermediate Bond 2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 29 | 8.11 | 8.11 | 232 | 5.15 | % | 1.30 | % | 1.30 | % | (18.29 | )% | (18.29 | )% | |||||||||||||||||||||||
| 2021 | 3 | 9.93 | 9.93 | 28 | 0.00 | % | 1.30 | % | 1.30 | % | (0.40 | )% | (0.40 | )% | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Columbia VP Limited Duration Credit 2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 2 | 9.12 | 9.12 | 15 | 0.33 | % | 1.30 | % | 1.30 | % | (7.57 | )% | (7.57 | )% | |||||||||||||||||||||||
| 2021 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
111
| 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 Strategic Income 2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 1 | $ | 8.70 | $ | 8.70 | $ | 6 | 6.01 | % | 1.30 | % | 1.30 | % | (12.66 | )% | (12.66 | )% | ||||||||||||||||||||
| 2021 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| DFA VA Global Bond | |||||||||||||||||||||||||||||||||||||
| 2022 | 4 | 9.25 | 9.25 | 34 | 1.99 | % | 0.30 | % | 0.30 | % | (6.61 | )% | (6.61 | )% | |||||||||||||||||||||||
| 2021 | 2 | 9.90 | 9.90 | 21 | 2.90 | % | 0.30 | % | 0.30 | % | (1.12 | )% | (1.12 | )% | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| DFA VA International Small | |||||||||||||||||||||||||||||||||||||
| 2022 | 1 | 11.89 | 11.89 | 13 | 3.60 | % | 0.30 | % | 0.30 | % | (17.89 | )% | (17.89 | )% | |||||||||||||||||||||||
| 2021 | - | 14.48 | 14.48 | 6 | 5.46 | % | 0.30 | % | 0.30 | % | 2.60 | % | 2.60 | % | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| DFA VA International Value | |||||||||||||||||||||||||||||||||||||
| 2022 | 18 | 13.88 | 13.88 | 251 | 2.12 | % | 0.30 | % | 0.30 | % | (3.75 | )% | (3.75 | )% | |||||||||||||||||||||||
| 2021 | 19 | 14.42 | 14.42 | 270 | 8.46 | % | 0.30 | % | 0.30 | % | 4.00 | % | 4.00 | % | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| DFA VA Short-Term Fixed | |||||||||||||||||||||||||||||||||||||
| 2022 | 8 | 9.79 | 9.79 | 79 | 1.42 | % | 0.30 | % | 0.30 | % | (1.45 | )% | (1.45 | )% | |||||||||||||||||||||||
| 2021 | 7 | 9.94 | 9.94 | 67 | 0.01 | % | 0.30 | % | 0.30 | % | (0.33 | )% | (0.33 | )% | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
112
| 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 Large Value | |||||||||||||||||||||||||||||||||||||
| 2022 | 21 | $ | 14.94 | $ | 14.94 | $ | 312 | 2.53 | % | 0.30 | % | 0.30 | % | (5.16 | )% | (5.16 | )% | ||||||||||||||||||||
| 2021 | 21 | 15.76 | 15.76 | 329 | 3.53 | % | 0.30 | % | 0.30 | % | 8.28 | % | 8.28 | % | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| DFA VA US Targeted Value | |||||||||||||||||||||||||||||||||||||
| 2022 | 1 | 18.88 | 18.88 | 10 | 22.96 | % | 0.30 | % | 0.30 | % | (4.50 | )% | (4.50 | )% | |||||||||||||||||||||||
| 2021 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Fidelity Contrafund Portfolio SC2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 95 | 42.08 | 25.49 | 2,836 | 0.16 | % | 1.05 | % | 1.75 | % | (27.26 | )% | (27.77 | )% | |||||||||||||||||||||||
| 2021 | 192 | 57.85 | 35.28 | 7,547 | 0.03 | % | 1.05 | % | 1.75 | % | 26.17 | % | 25.28 | % | |||||||||||||||||||||||
| 2020 | 226 | 28.16 | 45.85 | 6,901 | 0.08 | % | 1.05 | % | 1.75 | % | 27.96 | % | 28.87 | % | |||||||||||||||||||||||
| 2019 | 300 | 22.01 | 35.58 | 7,327 | 0.25 | % | 1.05 | % | 1.75 | % | 28.98 | % | 29.90 | % | |||||||||||||||||||||||
| 2018 | 155 | 17.06 | 27.39 | 3,061 | 0.38 | % | 1.05 | % | 1.75 | % | (8.28 | )% | (7.62 | )% | |||||||||||||||||||||||
| Fidelity Equity Income SC2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 3 | 29.45 | 29.45 | 90 | 1.01 | % | 1.50 | % | 1.50 | % | (6.66 | )% | (6.66 | )% | |||||||||||||||||||||||
| 2021 | 7 | 31.56 | 31.56 | 232 | 1.68 | % | 1.50 | % | 1.50 | % | 22.74 | % | 22.74 | % | |||||||||||||||||||||||
| 2020 | 8 | 25.71 | 25.71 | 205 | 1.54 | % | 1.50 | % | 1.50 | % | 4.85 | % | 4.85 | % | |||||||||||||||||||||||
| 2019 | 8 | 19.03 | 34.64 | 185 | 1.90 | % | 0.60 | % | 1.65 | % | 25.01 | % | 26.34 | % | |||||||||||||||||||||||
| 2018 | 8 | 19.59 | 19.59 | 153 | 2.12 | % | 1.50 | % | 1.50 | % | (9.92 | )% | (9.92 | )% | |||||||||||||||||||||||
| Fidelity Index 500 Portfolio SC2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 144 | 42.12 | 28.98 | 4,388 | 0.95 | % | 1.15 | % | 1.75 | % | (19.35 | )% | (19.84 | )% | |||||||||||||||||||||||
| 2021 | 225 | 52.23 | 36.15 | 8,516 | 1.02 | % | 1.15 | % | 1.75 | % | 26.78 | % | 26.02 | % | |||||||||||||||||||||||
| 2020 | 260 | 28.68 | 41.20 | 7,793 | 1.37 | % | 1.15 | % | 1.75 | % | 15.89 | % | 16.59 | % | |||||||||||||||||||||||
| 2019 | 340 | 24.75 | 35.34 | 8,768 | 1.95 | % | 1.05 | % | 1.75 | % | 28.73 | % | 29.52 | % | |||||||||||||||||||||||
| 2018 | 227 | 19.23 | 27.28 | 4,551 | 1.36 | % | 1.15 | % | 1.75 | % | (6.40 | )% | (5.83 | )% | |||||||||||||||||||||||
113
| 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 Investment Grade Bonds SC2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 384 | $ | 8.75 | $ | 10.11 | $ | 4,302 | 2.04 | % | 0.30 | % | 1.75 | % | (13.47 | )% | (14.73 | )% | ||||||||||||||||||||
| 2021 | 395 | 10.11 | 11.86 | 5,202 | 1.84 | % | 0.30 | % | 1.75 | % | (1.19 | )% | (2.63 | )% | |||||||||||||||||||||||
| 2020 | 379 | 10.23 | 17.56 | 5,124 | 1.96 | % | 0.30 | % | 1.75 | % | 7.26 | % | 8.02 | % | |||||||||||||||||||||||
| 2019 | 434 | 11.35 | 16.25 | 5,439 | 2.52 | % | 1.05 | % | 1.75 | % | 7.49 | % | 8.26 | % | |||||||||||||||||||||||
| 2018 | 489 | 10.56 | 15.02 | 5,659 | 2.26 | % | 1.05 | % | 1.75 | % | (2.53 | )% | (1.83 | )% | |||||||||||||||||||||||
| Fidelity Mid Cap SC2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 77 | 14.21 | 21.07 | 1,953 | 0.19 | % | 0.30 | % | 1.75 | % | (15.22 | )% | (16.45 | )% | |||||||||||||||||||||||
| 2021 | 150 | 16.77 | 25.22 | 4,331 | 0.34 | % | 0.30 | % | 1.75 | % | 24.93 | % | 23.12 | % | |||||||||||||||||||||||
| 2020 | 187 | 13.42 | 39.57 | 4,393 | 0.35 | % | 0.30 | % | 1.75 | % | 15.81 | % | 16.51 | % | |||||||||||||||||||||||
| 2019 | 223 | 17.69 | 36.63 | 4,503 | 0.82 | % | 1.05 | % | 1.75 | % | 21.02 | % | 21.88 | % | |||||||||||||||||||||||
| 2018 | 113 | 14.62 | 30.05 | 1,999 | 0.35 | % | 1.05 | % | 1.75 | % | (16.27 | )% | (15.67 | )% | |||||||||||||||||||||||
| Fidelity VIP Asset Manager Service 2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 0 | * | 9.03 | 9.03 | 3 | 1.80 | % | 1.30 | % | 1.30 | % | (16.25 | )% | (16.25 | )% | ||||||||||||||||||||||
| 2021 | - | 10.78 | 10.78 | 3 | 3.64 | % | 1.30 | % | 1.30 | % | 0.32 | % | 2.44 | % | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Fidelity VIP Balanced Service 2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 53 | 9.22 | 9.22 | 487 | 1.74 | % | 1.30 | % | 1.30 | % | (19.25 | )% | (19.25 | )% | |||||||||||||||||||||||
| 2021 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Fidelity VIP Fundsmanager 20% Service 2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 2 | 9.21 | 9.21 | 15 | 3.15 | % | 1.30 | % | 1.30 | % | (10.93 | )% | (10.93 | )% | |||||||||||||||||||||||
| 2021 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
114
| 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 85% Service 2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 1 | $ | 9.30 | $ | 9.30 | $ | 11 | 15.33 | % | 1.30 | % | 1.30 | % | (18.27 | )% | (18.27 | )% | ||||||||||||||||||||
| 2021 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Fidelity VIP Health Care Port Svc 2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 2 | 9.52 | 9.52 | 17 | 0.00 | % | 1.30 | % | 1.30 | % | (13.75 | )% | (13.75 | )% | |||||||||||||||||||||||
| 2021 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Franklin Dynatech VIP Fund | |||||||||||||||||||||||||||||||||||||
| 2022 | 5 | 31.98 | 21.36 | 121 | 0.00 | % | 1.15 | % | 1.75 | % | (40.65 | )% | (41.01 | )% | |||||||||||||||||||||||
| 2021 | 16 | 53.88 | 36.21 | 621 | 0.00 | % | 1.15 | % | 1.75 | % | 14.81 | % | 14.12 | % | |||||||||||||||||||||||
| 2020 | 27 | 31.73 | 46.93 | 904 | 0.00 | % | 1.15 | % | 1.75 | % | 42.36 | % | 43.22 | % | |||||||||||||||||||||||
| 2019 | 19 | 22.29 | 32.77 | 464 | 0.00 | % | 1.15 | % | 1.75 | % | 28.87 | % | 29.66 | % | |||||||||||||||||||||||
| 2018 | 13 | 17.29 | 25.27 | 244 | 0.00 | % | 1.15 | % | 1.75 | % | 1.32 | % | 1.95 | % | |||||||||||||||||||||||
| Franklin Income VIP CL 2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 60 | 21.01 | 15.29 | 1,087 | 3.15 | % | 1.05 | % | 1.75 | % | (6.46 | )% | (7.12 | )% | |||||||||||||||||||||||
| 2021 | 233 | 22.46 | 16.46 | 4,275 | 4.66 | % | 1.05 | % | 1.75 | % | 15.53 | % | 14.72 | % | |||||||||||||||||||||||
| 2020 | 268 | 14.35 | 22.86 | 4,259 | 1.84 | % | 1.05 | % | 1.75 | % | (1.07 | )% | (0.36 | )% | |||||||||||||||||||||||
| 2019 | 357 | 14.51 | 22.97 | 5,672 | 8.00 | % | 1.05 | % | 1.75 | % | 14.03 | % | 14.84 | % | |||||||||||||||||||||||
| 2018 | 131 | 12.72 | 20.02 | 1,900 | 7.29 | % | 1.05 | % | 1.75 | % | (5.99 | )% | (5.31 | )% | |||||||||||||||||||||||
| Franklin Multi-Asset Dynamic Multi-Strat VIT | |||||||||||||||||||||||||||||||||||||
| 2022 | - | 11.58 | 11.05 | - | 0.00 | % | 1.30 | % | 1.75 | % | (13.57 | )% | (13.81 | )% | |||||||||||||||||||||||
| 2021 | 542 | 13.40 | 12.82 | 7,208 | 2.32 | % | 1.30 | % | 1.75 | % | 11.19 | % | 10.68 | % | |||||||||||||||||||||||
| 2020 | 617 | 11.58 | 12.05 | 7,449 | 1.49 | % | 1.30 | % | 1.75 | % | (9.92 | )% | (9.50 | )% | |||||||||||||||||||||||
| 2019 | 681 | 12.86 | 13.32 | 9,012 | 1.99 | % | 1.30 | % | 1.75 | % | 13.49 | % | 14.01 | % | |||||||||||||||||||||||
| 2018 | 817 | 11.33 | 11.68 | 9,488 | 1.54 | % | 1.30 | % | 1.75 | % | (8.88 | )% | (8.46 | )% | |||||||||||||||||||||||
115
| 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 Mutual Shares VIP CL 2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 96 | $ | 13.25 | $ | 17.17 | $ | 1,740 | 1.07 | % | 0.30 | % | 1.75 | % | (7.71 | )% | (9.05 | )% | ||||||||||||||||||||
| 2021 | 218 | 14.36 | 18.88 | 4,268 | 2.91 | % | 0.30 | % | 1.75 | % | 18.81 | % | 17.09 | % | |||||||||||||||||||||||
| 2020 | 260 | 12.08 | 21.85 | 4,346 | 1.12 | % | 0.30 | % | 1.75 | % | (6.70 | )% | (6.04 | )% | |||||||||||||||||||||||
| 2019 | 302 | 16.81 | 23.28 | 5,415 | 2.57 | % | 1.05 | % | 1.75 | % | 20.43 | % | 21.29 | % | |||||||||||||||||||||||
| 2018 | 138 | 13.95 | 19.22 | 2,098 | 3.24 | % | 1.05 | % | 1.75 | % | (10.66 | )% | (10.03 | )% | |||||||||||||||||||||||
| Franklin Rising Dividend VIP CL 2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 135 | 13.50 | 28.60 | 4,155 | 0.36 | % | 0.30 | % | 1.75 | % | (10.84 | )% | (12.13 | )% | |||||||||||||||||||||||
| 2021 | 165 | 15.14 | 32.55 | 5,748 | 0.86 | % | 0.30 | % | 1.75 | % | 26.41 | % | 24.57 | % | |||||||||||||||||||||||
| 2020 | 195 | 11.97 | 38.16 | 5,399 | 0.75 | % | 0.30 | % | 1.75 | % | 13.94 | % | 14.75 | % | |||||||||||||||||||||||
| 2019 | 249 | 22.93 | 33.29 | 6,149 | 1.75 | % | 1.05 | % | 1.75 | % | 26.97 | % | 27.88 | % | |||||||||||||||||||||||
| 2018 | 122 | 18.06 | 26.06 | 2,436 | 1.74 | % | 1.05 | % | 1.75 | % | (6.74 | )% | (6.08 | )% | |||||||||||||||||||||||
| Franklin Small Cap Value VIP CL 2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 16 | 30.54 | 22.49 | 398 | 0.55 | % | 1.15 | % | 1.75 | % | (11.10 | )% | (11.63 | )% | |||||||||||||||||||||||
| 2021 | 29 | 34.36 | 25.45 | 806 | 1.07 | % | 1.15 | % | 1.75 | % | 23.93 | % | 23.18 | % | |||||||||||||||||||||||
| 2020 | 34 | 20.66 | 27.72 | 775 | 0.87 | % | 1.15 | % | 1.75 | % | 3.35 | % | 3.98 | % | |||||||||||||||||||||||
| 2019 | 37 | 19.99 | 26.66 | 798 | 0.71 | % | 1.15 | % | 1.75 | % | 24.14 | % | 24.90 | % | |||||||||||||||||||||||
| 2018 | 19 | 16.10 | 21.35 | 338 | 1.12 | % | 1.15 | % | 1.75 | % | (14.41 | )% | (13.88 | )% | |||||||||||||||||||||||
| Franklin Small-Mid Cap Growth VIP CL 2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 23 | 37.41 | 21.57 | 553 | 0.00 | % | 1.15 | % | 1.75 | % | (34.45 | )% | (34.85 | )% | |||||||||||||||||||||||
| 2021 | 29 | 57.07 | 33.11 | 1,056 | 0.00 | % | 1.15 | % | 1.75 | % | 8.75 | % | 8.09 | % | |||||||||||||||||||||||
| 2020 | 41 | 30.63 | 52.47 | 1,363 | 0.00 | % | 1.15 | % | 1.75 | % | 52.38 | % | 53.31 | % | |||||||||||||||||||||||
| 2019 | 61 | 20.10 | 34.23 | 1,364 | 0.00 | % | 1.15 | % | 1.75 | % | 29.14 | % | 29.93 | % | |||||||||||||||||||||||
| 2018 | 36 | 15.57 | 26.34 | 633 | 0.00 | % | 1.15 | % | 1.75 | % | (7.03 | )% | (6.46 | )% | |||||||||||||||||||||||
| Franklin US Government Securities VIP CL 2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 312 | 11.29 | 8.61 | 2,981 | 2.36 | % | 1.05 | % | 1.75 | % | (10.70 | )% | (11.33 | )% | |||||||||||||||||||||||
| 2021 | 328 | 12.64 | 9.71 | 3,537 | 2.40 | % | 1.05 | % | 1.75 | % | (2.86 | )% | (3.54 | )% | |||||||||||||||||||||||
| 2020 | 329 | 10.07 | 13.02 | 3,658 | 3.40 | % | 1.05 | % | 1.75 | % | 2.02 | % | 2.74 | % | |||||||||||||||||||||||
| 2019 | 387 | 9.87 | 12.67 | 4,185 | 2.89 | % | 1.05 | % | 1.75 | % | 3.39 | % | 4.13 | % | |||||||||||||||||||||||
| 2018 | 437 | 9.55 | 12.17 | 4,551 | 2.78 | % | 1.05 | % | 1.75 | % | (1.43 | )% | (0.72 | )% | |||||||||||||||||||||||
116
| 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 | 21 | $ | 11.71 | $ | 11.31 | $ | 239 | 0.00 | % | 1.30 | % | 1.65 | % | (20.21 | )% | (20.49 | )% | ||||||||||||||||||||
| 2021 | 13 | 14.68 | 14.23 | 195 | 0.00 | % | 1.30 | % | 1.65 | % | 14.66 | % | 14.26 | % | |||||||||||||||||||||||
| 2020 | 14 | 12.45 | 12.80 | 173 | 0.27 | % | 1.30 | % | 1.65 | % | 2.40 | % | 2.76 | % | |||||||||||||||||||||||
| 2019 | 14 | 12.16 | 12.46 | 175 | 1.34 | % | 1.30 | % | 1.65 | % | 10.09 | % | 10.48 | % | |||||||||||||||||||||||
| 2018 | 17 | 11.05 | 11.27 | 195 | 0.70 | % | 1.30 | % | 1.65 | % | (5.92 | )% | (5.59 | )% | |||||||||||||||||||||||
| Goldman Sachs International Equity Insights | |||||||||||||||||||||||||||||||||||||
| 2022 | 0 | * | 22.06 | 22.06 | 2 | 3.00 | % | 1.40 | % | 1.40 | % | (14.76 | )% | (14.76 | )% | ||||||||||||||||||||||
| 2021 | - | 25.88 | 25.88 | 3 | 2.93 | % | 1.40 | % | 1.40 | % | 10.60 | % | 10.60 | % | |||||||||||||||||||||||
| 2020 | 0 | * | 23.39 | 23.39 | 3 | 1.46 | % | 1.40 | % | 1.40 | % | 5.32 | % | 5.32 | % | ||||||||||||||||||||||
| 2019 | - | 22.21 | 2.21 | 2 | 2.49 | % | 1.40 | % | 1.40 | % | 16.80 | % | 16.80 | % | |||||||||||||||||||||||
| 2018 | - | 19.02 | 19.02 | 2 | 1.96 | % | 1.40 | % | 1.40 | % | (18.02 | )% | (17.43 | )% | |||||||||||||||||||||||
| Goldman Sachs International Equity Insights SC | |||||||||||||||||||||||||||||||||||||
| 2022 | 22 | 10.89 | 15.33 | 307 | 2.59 | % | 1.05 | % | 1.65 | % | (14.62 | )% | (15.14 | )% | |||||||||||||||||||||||
| 2021 | 32 | 12.75 | 13.80 | 530 | 2.21 | % | 1.05 | % | 1.75 | % | 10.64 | % | 9.86 | % | |||||||||||||||||||||||
| 2020 | 44 | 11.53 | 17.48 | 657 | 1.27 | % | 1.05 | % | 1.75 | % | 4.68 | % | 5.43 | % | |||||||||||||||||||||||
| 2019 | 43 | 10.93 | 16.60 | 599 | 2.67 | % | 1.05 | % | 1.75 | % | 16.17 | % | 16.99 | % | |||||||||||||||||||||||
| 2018 | 29 | 9.35 | 14.20 | 344 | 1.22 | % | 1.05 | % | 1.75 | % | (17.46 | )% | (17.46 | )% | |||||||||||||||||||||||
| Goldman Sachs Large Cap Value Fund SC | |||||||||||||||||||||||||||||||||||||
| 2022 | 29 | 20.59 | 21.58 | 735 | 1.05 | % | 1.05 | % | 1.75 | % | (7.55 | )% | (8.20 | )% | |||||||||||||||||||||||
| 2021 | 36 | 22.27 | 23.51 | 977 | 0.90 | % | 1.05 | % | 1.75 | % | 22.63 | % | 21.76 | % | |||||||||||||||||||||||
| 2020 | 41 | 18.16 | 24.30 | 917 | 0.99 | % | 1.05 | % | 1.75 | % | 1.93 | % | 2.66 | % | |||||||||||||||||||||||
| 2019 | 48 | 17.69 | 23.70 | 1,053 | 1.24 | % | 1.05 | % | 1.75 | % | 23.42 | % | 24.30 | % | |||||||||||||||||||||||
| 2018 | 54 | 14.24 | 19.09 | 960 | 0.89 | % | 1.05 | % | 1.75 | % | (10.33 | )% | (9.68 | )% | |||||||||||||||||||||||
| Goldman Sachs Mid Cap Value SC | |||||||||||||||||||||||||||||||||||||
| 2022 | 49 | 26.96 | 22.32 | 1,229 | 0.27 | % | 1.15 | % | 1.75 | % | (11.26 | )% | (11.80 | )% | |||||||||||||||||||||||
| 2021 | 90 | 30.38 | 25.30 | 2,491 | 0.21 | % | 1.15 | % | 1.75 | % | 29.07 | % | 28.29 | % | |||||||||||||||||||||||
| 2020 | 99 | 19.72 | 23.54 | 2,148 | 0.35 | % | 1.15 | % | 1.75 | % | 6.30 | % | 6.95 | % | |||||||||||||||||||||||
| 2019 | 126 | 18.55 | 22.01 | 2,549 | 0.76 | % | 1.15 | % | 1.75 | % | 28.88 | % | 29.67 | % | |||||||||||||||||||||||
| 2018 | 60 | 14.40 | 16.97 | 976 | 0.31 | % | 1.15 | % | 1.75 | % | (12.27 | )% | (11.73 | )% | |||||||||||||||||||||||
117
| 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 Small Cap Equity Insights | |||||||||||||||||||||||||||||||||||||
| 2022 | 0 | * | $ | 63.87 | $ | 63.87 | $ | 16 | 0.30 | % | 1.40 | % | 1.40 | % | (20.51 | )% | (20.51 | )% | |||||||||||||||||||
| 2021 | - | 80.34 | 80.34 | 20 | 0.50 | % | 1.40 | % | 1.40 | % | 22.06 | % | 22.06 | % | |||||||||||||||||||||||
| 2020 | 0 | * | 65.82 | 65.82 | 16 | 0.20 | % | 1.40 | % | 1.40 | % | 7.06 | % | 7.06 | % | ||||||||||||||||||||||
| 2019 | - | 61.48 | 61.48 | 15 | 0.51 | % | 1.40 | % | 1.40 | % | 23.10 | % | 23.10 | % | |||||||||||||||||||||||
| 2018 | - | 49.94 | 49.94 | 13 | 0.52 | % | 1.40 | % | 1.40 | % | (9.91 | )% | (9.91 | )% | |||||||||||||||||||||||
| Goldman Sachs Small Cap Equity Insights SC | |||||||||||||||||||||||||||||||||||||
| 2022 | 2 | 8.85 | 8.85 | 22 | 0.19 | % | 0.30 | % | 0.30 | % | (19.88 | )% | (19.88 | )% | |||||||||||||||||||||||
| 2021 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Goldman Sachs Strategic Growth | |||||||||||||||||||||||||||||||||||||
| 2022 | 1 | 71.95 | 71.95 | 50 | 0.00 | % | 1.40 | % | 1.40 | % | (33.46 | )% | (33.46 | )% | |||||||||||||||||||||||
| 2021 | 1 | 108.12 | 108.12 | 81 | 0.00 | % | 1.40 | % | 1.40 | % | 20.22 | % | 20.22 | % | |||||||||||||||||||||||
| 2020 | 1 | 89.94 | 89.94 | 71 | 0.08 | % | 1.40 | % | 1.40 | % | 38.54 | % | 38.54 | % | |||||||||||||||||||||||
| 2019 | 1 | 64.92 | 64.92 | 58 | 0.30 | % | 1.40 | % | 1.40 | % | 33.63 | % | 33.63 | % | |||||||||||||||||||||||
| 2018 | 1 | 48.58 | 48.58 | 46 | 0.47 | % | 1.40 | % | 1.40 | % | (2.43 | )% | (2.43 | )% | |||||||||||||||||||||||
| Goldman Sachs Strategic Growth SC | |||||||||||||||||||||||||||||||||||||
| 2022 | 26 | 43.26 | 29.01 | 922 | 0.00 | % | 1.15 | % | 1.75 | % | (33.45 | )% | (33.86 | )% | |||||||||||||||||||||||
| 2021 | 75 | 65.00 | 43.86 | 3,789 | 0.00 | % | 1.15 | % | 1.75 | % | 20.16 | % | 19.43 | % | |||||||||||||||||||||||
| 2020 | 92 | 36.73 | 54.10 | 3,754 | 0.00 | % | 1.15 | % | 1.75 | % | 37.66 | % | 38.50 | % | |||||||||||||||||||||||
| 2019 | 139 | 26.68 | 39.06 | 4,150 | 0.07 | % | 1.15 | % | 1.75 | % | 32.96 | % | 33.76 | % | |||||||||||||||||||||||
| 2018 | 46 | 20.07 | 29.20 | 1,091 | 0.00 | % | 1.15 | % | 1.75 | % | (3.06 | )% | (2.47 | )% | |||||||||||||||||||||||
| Goldman Sachs US Equity Insights | |||||||||||||||||||||||||||||||||||||
| 2022 | 1 | 78.09 | 78.09 | 69 | 0.77 | % | 1.40 | % | 1.40 | % | (20.86 | )% | (20.86 | )% | |||||||||||||||||||||||
| 2021 | 1 | 98.67 | 98.67 | 91 | 0.83 | % | 1.40 | % | 1.40 | % | 27.60 | % | 27.60 | % | |||||||||||||||||||||||
| 2020 | 1 | 77.33 | 77.33 | 73 | 0.82 | % | 1.40 | % | 1.40 | % | 15.90 | % | 15.90 | % | |||||||||||||||||||||||
| 2019 | 1 | 66.72 | 66.72 | 65 | 1.31 | % | 1.40 | % | 1.40 | % | 23.46 | % | 23.46 | % | |||||||||||||||||||||||
| 2018 | 1 | 54.04 | 54.04 | 55 | 1.30 | % | 1.40 | % | 1.40 | % | (7.51 | )% | (7.51 | )% | |||||||||||||||||||||||
118
| 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 US Equity Insights SC | |||||||||||||||||||||||||||||||||||||
| 2022 | 0 | * | $ | 37.70 | $ | 37.70 | $ | 16 | 0.54 | % | 1.50 | % | 1.50 | % | (21.10 | )% | (21.10 | )% | |||||||||||||||||||
| 2021 | - | 47.78 | 47.78 | 21 | 0.55 | % | 1.50 | % | 1.50 | % | 27.18 | % | 27.18 | % | |||||||||||||||||||||||
| 2020 | 1 | 37.57 | 37.57 | 20 | 0.58 | % | 1.50 | % | 1.50 | % | 15.56 | % | 15.56 | % | |||||||||||||||||||||||
| 2019 | 1 | 32.51 | 32.51 | 19 | 1.13 | % | 1.50 | % | 1.50 | % | 23.06 | % | 23.06 | % | |||||||||||||||||||||||
| 2018 | 1 | 26.42 | 26.42 | 15 | 1.00 | % | 1.50 | % | 1.50 | % | (7.77 | )% | (7.77 | )% | |||||||||||||||||||||||
| Goldman Sachs VIT Core Fixed Income Fund SC | |||||||||||||||||||||||||||||||||||||
| 2022 | 41 | 8.46 | 9.53 | 384 | 1.39 | % | 0.30 | % | 1.30 | % | (14.53 | )% | (15.39 | )% | |||||||||||||||||||||||
| 2021 | 38 | 9.89 | 11.26 | 426 | 1.10 | % | 0.30 | % | 1.30 | % | (2.52 | )% | (3.50 | )% | |||||||||||||||||||||||
| 2020 | 36 | 10.15 | 11.67 | 421 | 1.96 | % | 0.30 | % | 1.30 | % | 7.98 | % | 7.98 | % | |||||||||||||||||||||||
| 2019 | 38 | 10.80 | 10.80 | 405 | 2.38 | % | 1.30 | % | 1.30 | % | 7.59 | % | 7.59 | % | |||||||||||||||||||||||
| 2018 | 47 | 10.04 | 10.04 | 467 | 3.34 | % | 1.30 | % | 1.30 | % | (2.12 | )% | (2.12 | )% | |||||||||||||||||||||||
| Goldman Sachs VIT Mid Cap Growth Fund SC | |||||||||||||||||||||||||||||||||||||
| 2022 | 4 | 34.93 | 32.67 | 119 | 0.00 | % | 1.15 | % | 1.65 | % | (27.15 | )% | (27.52 | )% | |||||||||||||||||||||||
| 2021 | 8 | 47.94 | 45.07 | 337 | 0.00 | % | 1.15 | % | 1.65 | % | 10.20 | % | 9.64 | % | |||||||||||||||||||||||
| 2020 | 2 | 33.13 | 43.51 | 344 | 0.00 | % | 1.15 | % | 1.65 | % | 41.93 | % | 42.65 | % | |||||||||||||||||||||||
| 2019 | 28 | 22.39 | 30.50 | 688 | 0.00 | % | 1.15 | % | 1.75 | % | 31.72 | % | 32.52 | % | |||||||||||||||||||||||
| 2018 | 7 | 16.99 | 23.01 | 122 | 0.00 | % | 1.15 | % | 1.75 | % | (6.02 | )% | (5.45 | )% | |||||||||||||||||||||||
| Invesco V.I. American Franchise I | |||||||||||||||||||||||||||||||||||||
| 2022 | 4 | 14.26 | 14.26 | 55 | 0.00 | % | 1.40 | % | 1.40 | % | (32.08 | )% | (32.08 | )% | |||||||||||||||||||||||
| 2021 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Invesco V.I. American Value II | |||||||||||||||||||||||||||||||||||||
| 2022 | 13 | 29.51 | 21.03 | 288 | 0.34 | % | 1.15 | % | 1.75 | % | (3.98 | )% | (4.56 | )% | |||||||||||||||||||||||
| 2021 | 14 | 30.73 | 22.03 | 316 | 0.23 | % | 1.15 | % | 1.75 | % | 26.16 | % | 25.40 | % | |||||||||||||||||||||||
| 2020 | 16 | 17.57 | 24.36 | 303 | 0.50 | % | 1.15 | % | 1.75 | % | (0.91 | )% | (0.30 | )% | |||||||||||||||||||||||
| 2019 | 17 | 17.73 | 24.43 | 318 | 0.50 | % | 1.15 | % | 1.75 | % | 22.53 | % | 23.28 | % | |||||||||||||||||||||||
| 2018 | 12 | 14.47 | 19.82 | 178 | 0.25 | % | 1.15 | % | 1.75 | % | (14.40 | )% | (13.87 | )% | |||||||||||||||||||||||
119
| 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. Balanced Risk Allocation II | |||||||||||||||||||||||||||||||||||||
| 2022 | 436 | $ | 16.25 | $ | 12.99 | $ | 6,087 | 7.66 | % | 1.15 | % | 1.75 | % | (15.50 | )% | (16.01 | )% | ||||||||||||||||||||
| 2021 | 462 | 19.23 | 15.46 | 7,648 | 2.92 | % | 1.15 | % | 1.75 | % | 8.01 | % | 7.35 | % | |||||||||||||||||||||||
| 2020 | 559 | 14.40 | 17.80 | 8,602 | 6.76 | % | 1.15 | % | 1.75 | % | 8.07 | % | 8.73 | % | |||||||||||||||||||||||
| 2019 | 710 | 13.33 | 16.37 | 10,007 | 0.00 | % | 1.15 | % | 1.75 | % | 12.88 | % | 13.56 | % | |||||||||||||||||||||||
| 2018 | 833 | 11.81 | 14.42 | 10,412 | 1.30 | % | 1.15 | % | 1.75 | % | (8.35 | )% | (7.79 | )% | |||||||||||||||||||||||
| Invesco V.I. Capital Appreciation Fund I | |||||||||||||||||||||||||||||||||||||
| 2022 | 2 | 44.59 | 44.59 | 93 | 0.00 | % | 1.40 | % | 1.40 | % | (31.75 | )% | (31.75 | )% | |||||||||||||||||||||||
| 2021 | 2 | 65.34 | 65.34 | 145 | 0.00 | % | 1.40 | % | 1.40 | % | 20.86 | % | 20.86 | % | |||||||||||||||||||||||
| 2020 | 2 | 54.06 | 54.06 | 129 | 0.00 | % | 1.40 | % | 1.40 | % | 34.68 | % | 34.68 | % | |||||||||||||||||||||||
| 2019 | 3 | 40.14 | 40.14 | 107 | 0.06 | % | 1.40 | % | 1.40 | % | 34.29 | % | 34.29 | % | |||||||||||||||||||||||
| 2018 | 3 | 29.89 | 29.89 | 88 | 0.35 | % | 1.40 | % | 1.40 | % | (7.05 | )% | (7.05 | )% | |||||||||||||||||||||||
| Invesco V.I. Capital Appreciation Fund II | |||||||||||||||||||||||||||||||||||||
| 2022 | 2 | 30.70 | 40.19 | 92 | 0.00 | % | 1.05 | % | 1.65 | % | (31.69 | )% | (32.10 | )% | |||||||||||||||||||||||
| 2021 | 14 | 44.94 | 36.08 | 629 | 0.00 | % | 1.05 | % | 1.75 | % | 21.00 | % | 20.14 | % | |||||||||||||||||||||||
| 2020 | 17 | 30.03 | 50.79 | 604 | 0.00 | % | 1.05 | % | 1.75 | % | 33.86 | % | 34.81 | % | |||||||||||||||||||||||
| 2019 | 28 | 22.44 | 37.85 | 734 | 0.00 | % | 1.05 | % | 1.75 | % | 33.47 | % | 34.42 | % | |||||||||||||||||||||||
| 2018 | 4 | 17.39 | 28.28 | 108 | 0.00 | % | 1.05 | % | 1.50 | % | (7.37 | )% | (6.95 | )% | |||||||||||||||||||||||
| Invesco V.I. Comstock I | |||||||||||||||||||||||||||||||||||||
| 2022 | 2 | 44.10 | 44.10 | 77 | 1.60 | % | 1.40 | % | 1.40 | % | (0.29 | )% | (0.29 | )% | |||||||||||||||||||||||
| 2021 | 2 | 44.23 | 44.23 | 79 | 1.79 | % | 1.40 | % | 1.40 | % | 31.50 | % | 31.50 | % | |||||||||||||||||||||||
| 2020 | 2 | 33.63 | 33.63 | 71 | 2.00 | % | 1.40 | % | 1.40 | % | (2.24 | )% | (2.24 | )% | |||||||||||||||||||||||
| 2019 | 2 | 34.40 | 34.40 | 81 | 1.87 | % | 1.40 | % | 1.40 | % | 23.55 | % | 23.55 | % | |||||||||||||||||||||||
| 2018 | 3 | 27.85 | 27.85 | 79 | 1.86 | % | 1.40 | % | 1.40 | % | (13.40 | )% | (13.40 | )% | |||||||||||||||||||||||
| Invesco V.I. Comstock II | |||||||||||||||||||||||||||||||||||||
| 2022 | 34 | 16.69 | 25.46 | 959 | 0.60 | % | 0.30 | % | 1.75 | % | 0.54 | % | (0.91 | )% | |||||||||||||||||||||||
| 2021 | 23 | 37.80 | 25.70 | 696 | 1.54 | % | 1.15 | % | 1.75 | % | 31.52 | % | 30.72 | % | |||||||||||||||||||||||
| 2020 | 25 | 19.66 | 31.58 | 575 | 0.57 | % | 1.15 | % | 1.75 | % | (2.82 | )% | (2.22 | )% | |||||||||||||||||||||||
| 2019 | 34 | 20.23 | 32.41 | 862 | 1.93 | % | 1.15 | % | 1.75 | % | 22.76 | % | 23.51 | % | |||||||||||||||||||||||
| 2018 | 12 | 16.48 | 25.59 | 250 | 2.10 | % | 1.15 | % | 1.75 | % | (13.91 | )% | (13.38 | )% | |||||||||||||||||||||||
120
| 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. Conservative Balance II | |||||||||||||||||||||||||||||||||||||
| 2022 | 1 | $ | 8.84 | $ | 8.84 | $ | 13 | 2.62 | % | 1.30 | % | 1.30 | % | (18.10 | )% | (18.10 | )% | ||||||||||||||||||||
| 2021 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Invesco V.I. Discovery Mid Cap Growth Fund I | |||||||||||||||||||||||||||||||||||||
| 2022 | 1 | 40.23 | 40.23 | 52 | 0.00 | % | 1.40 | % | 1.40 | % | (31.95 | )% | (31.95 | )% | |||||||||||||||||||||||
| 2021 | 1 | 59.11 | 59.11 | 83 | 0.00 | % | 1.40 | % | 1.40 | % | 17.43 | % | 17.43 | % | |||||||||||||||||||||||
| 2020 | 2 | 50.33 | 50.33 | 79 | 0.03 | % | 1.40 | % | 1.40 | % | 38.72 | % | 38.72 | % | |||||||||||||||||||||||
| 2019 | 2 | 36.28 | 36.28 | 66 | 0.00 | % | 1.40 | % | 1.40 | % | 37.41 | % | 37.41 | % | |||||||||||||||||||||||
| 2018 | 2 | 26.40 | 26.40 | 56 | 0.00 | % | 1.40 | % | 1.40 | % | (7.40 | )% | (7.40 | )% | |||||||||||||||||||||||
| Invesco V.I. Discovery Mid Cap Growth Fund II | |||||||||||||||||||||||||||||||||||||
| 2022 | 8 | 11.84 | 11.70 | 124 | 0.00 | % | 1.30 | % | 1.75 | % | (32.02 | )% | (32.33 | )% | |||||||||||||||||||||||
| 2021 | 18 | 17.42 | 17.29 | 409 | 0.00 | % | 1.30 | % | 1.75 | % | 17.25 | % | 16.72 | % | |||||||||||||||||||||||
| 2020 | 24 | 14.81 | 47.19 | 446 | 0.00 | % | 1.30 | % | 1.75 | % | 37.93 | % | 38.14 | % | |||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Invesco V.I. Equity and Income II | |||||||||||||||||||||||||||||||||||||
| 2022 | 46 | 27.47 | 19.33 | 1,103 | 0.97 | % | 1.15 | % | 1.75 | % | (8.77 | )% | (9.32 | )% | |||||||||||||||||||||||
| 2021 | 75 | 30.11 | 21.32 | 2,013 | 1.58 | % | 1.15 | % | 1.75 | % | 16.99 | % | 16.28 | % | |||||||||||||||||||||||
| 2020 | 92 | 18.34 | 28.69 | 2,159 | 2.11 | % | 1.15 | % | 1.75 | % | 7.73 | % | 8.39 | % | |||||||||||||||||||||||
| 2019 | 105 | 17.02 | 26.56 | 2,138 | 3.18 | % | 1.15 | % | 1.75 | % | 17.91 | % | 18.63 | % | |||||||||||||||||||||||
| 2018 | 50 | 14.43 | 22.47 | 920 | 2.66 | % | 1.15 | % | 1.75 | % | (11.31 | )% | (10.77 | )% | |||||||||||||||||||||||
| Invesco V.I. Global Fund I | |||||||||||||||||||||||||||||||||||||
| 2022 | 1 | 51.32 | 51.32 | 61 | 0.00 | % | 1.40 | % | 1.40 | % | (32.72 | )% | (32.72 | )% | |||||||||||||||||||||||
| 2021 | 1 | 76.27 | 76.27 | 99 | 0.00 | % | 1.40 | % | 1.40 | % | 13.88 | % | 13.88 | % | |||||||||||||||||||||||
| 2020 | 1 | 66.98 | 66.98 | 97 | 0.64 | % | 1.40 | % | 1.40 | % | 25.85 | % | 25.85 | % | |||||||||||||||||||||||
| 2019 | 2 | 53.22 | 53.22 | 87 | 0.95 | % | 1.40 | % | 1.40 | % | 29.95 | % | 29.95 | % | |||||||||||||||||||||||
| 2018 | 2 | 40.95 | 40.95 | 78 | 1.08 | % | 1.40 | % | 1.40 | % | (14.40 | )% | (14.40 | )% | |||||||||||||||||||||||
121
| 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 Fund II | |||||||||||||||||||||||||||||||||||||
| 2022 | 29 | $ | 30.06 | $ | 18.08 | $ | 890 | 0.00 | % | 1.15 | % | 1.75 | % | (32.72 | )% | (33.13 | )% | ||||||||||||||||||||
| 2021 | 77 | 44.67 | 27.03 | 3,061 | 0.00 | % | 1.15 | % | 1.75 | % | 13.85 | % | 13.16 | % | |||||||||||||||||||||||
| 2020 | 89 | 23.89 | 62.99 | 2,909 | 0.36 | % | 1.15 | % | 1.75 | % | 25.11 | % | 25.87 | % | |||||||||||||||||||||||
| 2019 | 128 | 19.09 | 50.22 | 3,375 | 0.71 | % | 1.15 | % | 1.75 | % | 29.16 | % | 29.94 | % | |||||||||||||||||||||||
| 2018 | 42 | 14.78 | 38.79 | 991 | 1.09 | % | 1.15 | % | 1.75 | % | (14.92 | )% | (14.39 | )% | |||||||||||||||||||||||
| Invesco V.I. Global Real Estate II | |||||||||||||||||||||||||||||||||||||
| 2022 | 2 | 12.31 | 12.31 | 29 | 0.36 | % | 1.30 | % | 1.30 | % | (26.11 | )% | (26.11 | )% | |||||||||||||||||||||||
| 2021 | 27 | 16.66 | 16.09 | 444 | 2.10 | % | 1.30 | % | 1.65 | % | 23.82 | % | 23.38 | % | |||||||||||||||||||||||
| 2020 | 44 | 13.04 | 13.45 | 593 | 1.83 | % | 1.30 | % | 1.65 | % | (14.00 | )% | (13.70 | )% | |||||||||||||||||||||||
| 2019 | 47 | 15.17 | 15.59 | 724 | 4.72 | % | 1.30 | % | 1.65 | % | 20.63 | % | 21.05 | % | |||||||||||||||||||||||
| 2018 | 25 | 12.57 | 12.88 | 316 | 5.67 | % | 1.30 | % | 1.65 | % | (7.89 | )% | (7.56 | )% | |||||||||||||||||||||||
| Invesco V.I. Global Strategic Income Fund I | |||||||||||||||||||||||||||||||||||||
| 2022 | 0 | * | 19.72 | 19.72 | 8 | 0.00 | % | 1.40 | % | 1.40 | % | (12.70 | )% | (12.70 | )% | ||||||||||||||||||||||
| 2021 | - | 22.59 | 22.59 | 9 | 4.62 | % | 1.40 | % | 1.40 | % | (4.76 | )% | (4.76 | )% | |||||||||||||||||||||||
| 2020 | 0 | * | 23.72 | 23.72 | 10 | 5.52 | % | 1.40 | % | 1.40 | % | 1.96 | % | 1.96 | % | ||||||||||||||||||||||
| 2019 | - | 23.26 | 23.26 | 10 | 2.73 | % | 1.40 | % | 1.40 | % | 9.25 | % | 9.25 | % | |||||||||||||||||||||||
| 2018 | 1 | 21.29 | 21.29 | 17 | 4.95 | % | 1.40 | % | 1.40 | % | (5.74 | )% | (5.74 | )% | |||||||||||||||||||||||
| Invesco V.I. Global Strategic Income Fund II | |||||||||||||||||||||||||||||||||||||
| 2022 | 316 | 14.89 | 9.17 | 3,955 | 0.00 | % | 1.05 | % | 1.75 | % | (12.64 | )% | (13.25 | )% | |||||||||||||||||||||||
| 2021 | 336 | 17.05 | 10.58 | 4,891 | 4.37 | % | 1.05 | % | 1.75 | % | (4.57 | )% | (5.25 | )% | |||||||||||||||||||||||
| 2020 | 326 | 11.16 | 22.25 | 4,860 | 4.97 | % | 1.05 | % | 1.75 | % | 1.19 | % | 1.91 | % | |||||||||||||||||||||||
| 2019 | 366 | 11.03 | 21.93 | 5,339 | 3.40 | % | 1.05 | % | 1.75 | % | 8.67 | % | 9.45 | % | |||||||||||||||||||||||
| 2018 | 422 | 10.15 | 20.13 | 5,575 | 4.58 | % | 1.05 | % | 1.75 | % | (6.22 | )% | (5.55 | )% | |||||||||||||||||||||||
| Invesco V.I. Government Securities II | |||||||||||||||||||||||||||||||||||||
| 2022 | 66 | 8.74 | 8.93 | 619 | 2.18 | % | 0.30 | % | 1.75 | % | (10.84 | )% | (12.14 | )% | |||||||||||||||||||||||
| 2021 | 40 | 9.81 | 10.16 | 426 | 1.67 | % | 0.30 | % | 1.75 | % | (2.73 | )% | (4.14 | )% | |||||||||||||||||||||||
| 2020 | 67 | 10.08 | 11.60 | 735 | 3.30 | % | 0.30 | % | 1.75 | % | 4.12 | % | 4.86 | % | |||||||||||||||||||||||
| 2019 | 38 | 10.18 | 11.06 | 404 | 2.24 | % | 1.05 | % | 1.75 | % | 3.90 | % | 4.64 | % | |||||||||||||||||||||||
| 2018 | 40 | 9.80 | 10.57 | 409 | 1.98 | % | 1.05 | % | 1.75 | % | (1.47 | )% | (0.76 | )% | |||||||||||||||||||||||
122
| 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. Growth & Income I | |||||||||||||||||||||||||||||||||||||
| 2022 | 1 | $ | 35.50 | $ | 35.50 | $ | 23 | 1.62 | % | 1.40 | % | 1.40 | % | (7.07 | )% | (7.07 | )% | ||||||||||||||||||||
| 2021 | 1 | 38.20 | 38.20 | 25 | 1.17 | % | 1.40 | % | 1.40 | % | 26.71 | % | 26.71 | % | |||||||||||||||||||||||
| 2020 | 1 | 30.15 | 30.15 | 38 | 1.67 | % | 1.40 | % | 1.40 | % | 0.67 | % | 0.67 | % | |||||||||||||||||||||||
| 2019 | 2 | 29.95 | 29.95 | 52 | 1.91 | % | 1.40 | % | 1.40 | % | 23.44 | % | 23.44 | % | |||||||||||||||||||||||
| 2018 | 2 | 24.26 | 24.26 | 42 | 2.20 | % | 1.40 | % | 1.40 | % | (14.60 | )% | (14.60 | )% | |||||||||||||||||||||||
| Invesco V.I. Growth & Income II | |||||||||||||||||||||||||||||||||||||
| 2022 | 106 | 33.33 | 22.91 | 2,952 | 0.49 | % | 1.05 | % | 1.75 | % | (6.99 | )% | (7.64 | )% | |||||||||||||||||||||||
| 2021 | 201 | 35.83 | 24.80 | 5,896 | 1.38 | % | 1.05 | % | 1.75 | % | 26.84 | % | 25.95 | % | |||||||||||||||||||||||
| 2020 | 233 | 19.69 | 28.29 | 5,450 | 1.06 | % | 1.05 | % | 1.75 | % | 0.07 | % | 0.78 | % | |||||||||||||||||||||||
| 2019 | 273 | 19.68 | 28.20 | 6,289 | 1.95 | % | 1.05 | % | 1.75 | % | 22.67 | % | 23.54 | % | |||||||||||||||||||||||
| 2018 | 84 | 16.04 | 22.93 | 1,741 | 2.62 | % | 1.05 | % | 1.75 | % | (15.11 | )% | (14.50 | )% | |||||||||||||||||||||||
| Invesco V.I. EQV International Equity Fund II | |||||||||||||||||||||||||||||||||||||
| 2022 | 9 | 13.30 | 12.76 | 119 | 2.15 | % | 1.15 | % | 1.50 | % | (19.44 | )% | (19.72 | )% | |||||||||||||||||||||||
| 2021 | 23 | 12.53 | 15.89 | 322 | 0.61 | % | 0.30 | % | 1.50 | % | (1.18 | )% | 4.02 | % | |||||||||||||||||||||||
| 2020 | 18 | 15.05 | 16.24 | 286 | 1.99 | % | 1.15 | % | 1.65 | % | 11.87 | % | 12.43 | % | |||||||||||||||||||||||
| 2019 | 18 | 13.46 | 14.47 | 255 | 2.37 | % | 1.15 | % | 1.65 | % | 26.13 | % | 26.77 | % | |||||||||||||||||||||||
| 2018 | 4 | 10.80 | 11.43 | 41 | 0.44 | % | 1.15 | % | 1.50 | % | (16.48 | )% | (16.18 | )% | |||||||||||||||||||||||
| Invesco V.I. Main Street Fund I | |||||||||||||||||||||||||||||||||||||
| 2022 | 1 | 37.00 | 37.00 | 30 | 1.40 | % | 1.40 | % | 1.40 | % | (21.25 | )% | (21.25 | )% | |||||||||||||||||||||||
| 2021 | 1 | 46.99 | 46.99 | 38 | 0.72 | % | 1.40 | % | 1.40 | % | 25.79 | % | 25.79 | % | |||||||||||||||||||||||
| 2020 | 1 | 37.36 | 37.36 | 31 | 1.41 | % | 1.40 | % | 1.40 | % | 12.35 | % | 12.35 | % | |||||||||||||||||||||||
| 2019 | 1 | 33.25 | 33.25 | 27 | 1.09 | % | 1.40 | % | 1.40 | % | 30.23 | % | 30.23 | % | |||||||||||||||||||||||
| 2018 | 1 | 25.53 | 25.53 | 21 | 1.22 | % | 1.40 | % | 1.40 | % | (9.18 | )% | (9.18 | )% | |||||||||||||||||||||||
| Invesco V.I. Main Street Fund II | |||||||||||||||||||||||||||||||||||||
| 2022 | 21 | 11.83 | 25.34 | 569 | 0.79 | % | 0.30 | % | 1.75 | % | (20.55 | )% | (21.70 | )% | |||||||||||||||||||||||
| 2021 | 42 | 14.89 | 32.36 | 1,501 | 0.51 | % | 0.30 | % | 1.75 | % | 26.85 | % | 25.01 | % | |||||||||||||||||||||||
| 2020 | 48 | 11.74 | 37.24 | 1,377 | 1.03 | % | 0.30 | % | 1.75 | % | 11.71 | % | 12.39 | % | |||||||||||||||||||||||
| 2019 | 60 | 23.17 | 33.13 | 1,578 | 1.08 | % | 1.15 | % | 1.75 | % | 29.44 | % | 30.22 | % | |||||||||||||||||||||||
| 2018 | 36 | 17.90 | 25.44 | 742 | 1.10 | % | 1.15 | % | 1.75 | % | (9.71 | )% | (9.16 | )% | |||||||||||||||||||||||
123
| 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. Small Cap Equity II | |||||||||||||||||||||||||||||||||||||
| 2022 | 2 | $ | 19.08 | $ | 19.08 | $ | 33 | 0.00 | % | 1.30 | % | 1.30 | % | (21.76 | )% | (21.76 | )% | ||||||||||||||||||||
| 2021 | 4 | 24.38 | 23.55 | 102 | 0.00 | % | 1.30 | % | 1.65 | % | 8.19 | % | 18.12 | % | |||||||||||||||||||||||
| 2020 | 2 | 19.94 | 20.57 | 50 | 0.02 | % | 1.30 | % | 1.65 | % | 24.78 | % | 25.22 | % | |||||||||||||||||||||||
| 2019 | 3 | 15.98 | 16.43 | 45 | 0.00 | % | 1.30 | % | 1.65 | % | 24.24 | % | 24.68 | % | |||||||||||||||||||||||
| 2018 | - | 12.78 | 13.17 | - | 0.00 | % | 1.30 | % | 1.75 | % | (16.76 | )% | (16.38 | )% | |||||||||||||||||||||||
| Invesco V.I. U.S. Government Money Fund I | |||||||||||||||||||||||||||||||||||||
| 2022 | 10,290 | 10.05 | 8.59 | 31,777 | 2.34 | % | 0.30 | % | 1.75 | % | 0.96 | % | (0.50 | )% | |||||||||||||||||||||||
| 2021 | 2,652 | 0.90 | 8.63 | 7,227 | 0.00 | % | 1.15 | % | 1.75 | % | (1.14 | )% | (1.74 | )% | |||||||||||||||||||||||
| 2020 | 1,771 | 0.91 | 9.17 | 5,622 | 0.31 | % | 1.15 | % | 1.75 | % | (1.54 | )% | (0.94 | )% | |||||||||||||||||||||||
| 2019 | 2,013 | 0.92 | 9.27 | 6,478 | 1.20 | % | 1.15 | % | 1.75 | % | (0.07 | )% | 0.54 | % | |||||||||||||||||||||||
| 2018 | 16,706 | 0.91 | 9.24 | 54,675 | 0.88 | % | 1.15 | % | 1.75 | % | (0.43 | )% | 0.18 | % | |||||||||||||||||||||||
| Lord Abbett Bond Debenture VC | |||||||||||||||||||||||||||||||||||||
| 2022 | 286 | 22.06 | 13.00 | 4,969 | 4.09 | % | 1.05 | % | 1.75 | % | (13.71 | )% | (14.32 | )% | |||||||||||||||||||||||
| 2021 | 317 | 25.56 | 15.17 | 6,495 | 3.05 | % | 1.05 | % | 1.75 | % | 2.19 | % | 1.47 | % | |||||||||||||||||||||||
| 2020 | 329 | 14.95 | 27.83 | 6,437 | 3.29 | % | 1.05 | % | 1.75 | % | 5.43 | % | 6.18 | % | |||||||||||||||||||||||
| 2019 | 426 | 14.19 | 26.31 | 7,802 | 3.77 | % | 1.05 | % | 1.75 | % | 11.37 | % | 12.17 | % | |||||||||||||||||||||||
| 2018 | 493 | 12.74 | 23.54 | 8,069 | 4.30 | % | 1.05 | % | 1.75 | % | (5.71 | )% | (5.03 | )% | |||||||||||||||||||||||
| Lord Abbett Calibrated Dividend Growth VC | |||||||||||||||||||||||||||||||||||||
| 2022 | 16 | 12.83 | 42.36 | 452 | 0.77 | % | 0.30 | % | 1.65 | % | (13.81 | )% | (14.97 | )% | |||||||||||||||||||||||
| 2021 | 27 | 14.88 | 49.82 | 1,015 | 0.62 | % | 0.30 | % | 1.65 | % | 25.24 | % | 24.57 | % | |||||||||||||||||||||||
| 2020 | 39 | 11.88 | 41.08 | 1,147 | 1.05 | % | 0.30 | % | 1.65 | % | 13.51 | % | 14.09 | % | |||||||||||||||||||||||
| 2019 | 28 | 22.36 | 36.13 | 772 | 2.03 | % | 1.15 | % | 1.65 | % | 24.36 | % | 24.99 | % | |||||||||||||||||||||||
| 2018 | 18 | 17.91 | 29.01 | 355 | 1.65 | % | 1.15 | % | 1.65 | % | (6.25 | )% | (5.77 | )% | |||||||||||||||||||||||
| Lord Abbett Growth & Income VC | |||||||||||||||||||||||||||||||||||||
| 2022 | 10 | 30.03 | 21.76 | 274 | 1.15 | % | 1.15 | % | 1.75 | % | (10.48 | )% | (11.02 | )% | |||||||||||||||||||||||
| 2021 | 13 | 33.55 | 24.46 | 378 | 1.05 | % | 1.15 | % | 1.75 | % | 27.54 | % | 26.77 | % | |||||||||||||||||||||||
| 2020 | 14 | 19.29 | 26.30 | 326 | 1.58 | % | 1.15 | % | 1.75 | % | 0.90 | % | 1.52 | % | |||||||||||||||||||||||
| 2019 | 14 | 19.12 | 25.91 | 318 | 1.72 | % | 1.15 | % | 1.75 | % | 20.35 | % | 21.09 | % | |||||||||||||||||||||||
| 2018 | 14 | 15.89 | 21.40 | 272 | 1.27 | % | 1.15 | % | 1.75 | % | (9.76 | )% | (9.21 | )% | |||||||||||||||||||||||
124
| 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 Growth Opportunities VC | |||||||||||||||||||||||||||||||||||||
| 2022 | 5 | $ | 35.54 | $ | 35.93 | $ | 182 | 0.00 | % | 1.05 | % | 1.65 | % | (33.24 | )% | (33.64 | )% | ||||||||||||||||||||
| 2021 | 8 | 53.24 | 54.15 | 434 | 0.00 | % | 1.05 | % | 1.65 | % | 5.34 | % | 4.70 | % | |||||||||||||||||||||||
| 2020 | 18 | 30.08 | 53.12 | 761 | 0.00 | % | 1.05 | % | 1.65 | % | 37.08 | % | 37.92 | % | |||||||||||||||||||||||
| 2019 | 27 | 21.87 | 38.69 | 808 | 0.00 | % | 1.05 | % | 1.65 | % | 34.12 | % | 34.94 | % | |||||||||||||||||||||||
| 2018 | 7 | 16.25 | 28.81 | 158 | 0.00 | % | 1.05 | % | 1.65 | % | (4.50 | )% | (3.91 | )% | |||||||||||||||||||||||
| Lord Abbett Mid Cap Stock VC | |||||||||||||||||||||||||||||||||||||
| 2022 | 7 | 29.80 | 25.58 | 159 | 0.67 | % | 1.15 | % | 1.65 | % | (12.23 | )% | (12.68 | )% | |||||||||||||||||||||||
| 2021 | 9 | 33.96 | 29.29 | 239 | 0.61 | % | 1.15 | % | 1.65 | % | 27.22 | % | 26.58 | % | |||||||||||||||||||||||
| 2020 | 9 | 17.12 | 26.69 | 193 | 0.90 | % | 1.15 | % | 1.65 | % | 0.81 | % | 1.32 | % | |||||||||||||||||||||||
| 2019 | 11 | 16.92 | 26.34 | 224 | 1.19 | % | 1.15 | % | 1.65 | % | 20.62 | % | 21.23 | % | |||||||||||||||||||||||
| 2018 | 6 | 13.98 | 21.73 | 110 | 0.48 | % | 1.15 | % | 1.65 | % | (16.45 | )% | (16.02 | )% | |||||||||||||||||||||||
| Lord Abbett Series Fundamental Equity VC | |||||||||||||||||||||||||||||||||||||
| 2022 | 38 | 26.41 | 19.48 | 895 | 0.62 | % | 1.15 | % | 1.75 | % | (12.99 | )% | (13.52 | )% | |||||||||||||||||||||||
| 2021 | 98 | 30.35 | 22.53 | 2,531 | 0.78 | % | 1.15 | % | 1.75 | % | 25.85 | % | 25.09 | % | |||||||||||||||||||||||
| 2020 | 125 | 18.01 | 24.12 | 2,557 | 1.04 | % | 1.15 | % | 1.75 | % | (0.01 | )% | 0.60 | % | |||||||||||||||||||||||
| 2019 | 150 | 18.01 | 23.98 | 3,035 | 1.76 | % | 1.15 | % | 1.75 | % | 19.39 | % | 20.12 | % | |||||||||||||||||||||||
| 2018 | 65 | 15.09 | 19.96 | 1,152 | 0.86 | % | 1.15 | % | 1.75 | % | (9.77 | )% | (9.22 | )% | |||||||||||||||||||||||
| Lord Abbett Series Short Duration Inc VC | |||||||||||||||||||||||||||||||||||||
| 2022 | 2 | 9.30 | 9.30 | 19 | 3.35 | % | 1.30 | % | 1.30 | % | (6.29 | )% | (6.29 | )% | |||||||||||||||||||||||
| 2021 | 1 | 9.93 | 9.93 | 14 | 22.34 | % | 1.30 | % | 1.30 | % | (0.11 | )% | (0.11 | )% | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| MFS Growth Series IC | |||||||||||||||||||||||||||||||||||||
| 2022 | 1 | 55.86 | 55.86 | 70 | 0.00 | % | 1.40 | % | 1.40 | % | (32.59 | )% | (32.59 | )% | |||||||||||||||||||||||
| 2021 | 1 | 82.86 | 82.86 | 109 | 0.00 | % | 1.40 | % | 1.40 | % | 21.81 | % | 21.81 | % | |||||||||||||||||||||||
| 2020 | 1 | 68.03 | 68.03 | 93 | 0.00 | % | 1.40 | % | 1.40 | % | 30.01 | % | 30.01 | % | |||||||||||||||||||||||
| 2019 | 1 | 52.32 | 52.32 | 77 | 0.00 | % | 1.40 | % | 1.40 | % | 36.22 | % | 36.22 | % | |||||||||||||||||||||||
| 2018 | 2 | 38.41 | 38.41 | 59 | 0.10 | % | 1.40 | % | 1.40 | % | 1.23 | % | 1.23 | % | |||||||||||||||||||||||
125
| 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 Growth Series SC | |||||||||||||||||||||||||||||||||||||
| 2022 | 19 | $ | 47.78 | $ | 30.26 | $ | 646 | 0.00 | % | 1.15 | % | 1.75 | % | (32.59 | )% | (33.00 | )% | ||||||||||||||||||||
| 2021 | 18 | 70.88 | 45.16 | 931 | 0.00 | % | 1.15 | % | 1.75 | % | 21.82 | % | 21.08 | % | |||||||||||||||||||||||
| 2020 | 20 | 37.29 | 63.89 | 838 | 0.00 | % | 1.15 | % | 1.75 | % | 29.24 | % | 30.03 | % | |||||||||||||||||||||||
| 2019 | 21 | 28.86 | 49.31 | 712 | 0.00 | % | 1.15 | % | 1.75 | % | 35.37 | % | 36.20 | % | |||||||||||||||||||||||
| 2018 | 22 | 21.32 | 36.33 | 519 | 0.00 | % | 1.15 | % | 1.75 | % | 0.61 | % | 1.23 | % | |||||||||||||||||||||||
| MFS Investors Trust IC | |||||||||||||||||||||||||||||||||||||
| 2022 | 2 | 41.00 | 41.00 | 63 | 0.63 | % | 1.40 | % | 1.40 | % | (17.65 | )% | (17.65 | )% | |||||||||||||||||||||||
| 2021 | 2 | 49.79 | 49.79 | 81 | 0.63 | % | 1.40 | % | 1.40 | % | 25.04 | % | 25.04 | % | |||||||||||||||||||||||
| 2020 | 2 | 39.82 | 39.82 | 68 | 0.58 | % | 1.40 | % | 1.40 | % | 12.28 | % | 12.28 | % | |||||||||||||||||||||||
| 2019 | 2 | 35.46 | 35.46 | 64 | 0.70 | % | 1.40 | % | 1.40 | % | 29.74 | % | 29.74 | % | |||||||||||||||||||||||
| 2018 | 2 | 27.33 | 27.33 | 52 | 0.66 | % | 1.40 | % | 1.40 | % | (6.82 | )% | (6.82 | )% | |||||||||||||||||||||||
| MFS Investors Trust SC | |||||||||||||||||||||||||||||||||||||
| 2022 | 10 | 37.38 | 26.20 | 343 | 0.35 | % | 1.15 | % | 1.75 | % | (17.64 | )% | (18.14 | )% | |||||||||||||||||||||||
| 2021 | 12 | 45.38 | 32.00 | 491 | 0.41 | % | 1.15 | % | 1.75 | % | 25.05 | % | 24.30 | % | |||||||||||||||||||||||
| 2020 | 14 | 25.75 | 37.40 | 472 | 0.39 | % | 1.15 | % | 1.75 | % | 11.61 | % | 12.29 | % | |||||||||||||||||||||||
| 2019 | 16 | 23.07 | 33.42 | 469 | 0.49 | % | 1.15 | % | 1.75 | % | 28.95 | % | 29.74 | % | |||||||||||||||||||||||
| 2018 | 18 | 17.89 | 25.85 | 423 | 0.45 | % | 1.15 | % | 1.75 | % | (7.36 | )% | (6.80 | )% | |||||||||||||||||||||||
| MFS New Discovery IC | |||||||||||||||||||||||||||||||||||||
| 2022 | 0 | * | 62.33 | 62.33 | 9 | 0.00 | % | 1.40 | % | 1.40 | % | (30.74 | )% | (30.74 | )% | ||||||||||||||||||||||
| 2021 | - | 90.00 | 90.00 | 13 | 0.00 | % | 1.40 | % | 1.40 | % | 0.38 | % | 0.38 | % | |||||||||||||||||||||||
| 2020 | 0 | * | 89.66 | 89.66 | 13 | 0.00 | % | 1.40 | % | 1.40 | % | 43.85 | % | 43.85 | % | ||||||||||||||||||||||
| 2019 | - | 62.33 | 62.33 | 9 | 0.00 | % | 1.40 | % | 1.40 | % | 39.72 | % | 39.72 | % | |||||||||||||||||||||||
| 2018 | - | 44.61 | 44.61 | 18 | 0.00 | % | 1.40 | % | 1.40 | % | (2.86 | )% | (2.86 | )% | |||||||||||||||||||||||
| MFS New Discovery SC | |||||||||||||||||||||||||||||||||||||
| 2022 | 15 | 46.95 | 21.10 | 523 | 0.00 | % | 1.15 | % | 1.75 | % | (30.80 | )% | (31.22 | )% | |||||||||||||||||||||||
| 2021 | 13 | 67.85 | 30.68 | 643 | 0.00 | % | 1.15 | % | 1.75 | % | 0.41 | % | (0.20 | )% | |||||||||||||||||||||||
| 2020 | 15 | 30.74 | 84.17 | 763 | 0.00 | % | 1.15 | % | 1.75 | % | 43.04 | % | 43.91 | % | |||||||||||||||||||||||
| 2019 | 20 | 21.49 | 58.70 | 714 | 0.00 | % | 1.15 | % | 1.75 | % | 38.81 | % | 39.65 | % | |||||||||||||||||||||||
| 2018 | 23 | 15.48 | 42.18 | 590 | 0.00 | % | 1.15 | % | 1.75 | % | (3.44 | )% | (2.85 | )% | |||||||||||||||||||||||
126
| 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 Research IC | |||||||||||||||||||||||||||||||||||||
| 2022 | 1 | $ | 44.01 | $ | 44.01 | $ | 30 | 0.46 | % | 1.40 | % | 1.40 | % | (18.37 | )% | (18.37 | )% | ||||||||||||||||||||
| 2021 | 1 | 53.91 | 53.91 | 37 | 0.55 | % | 1.40 | % | 1.40 | % | 23.06 | % | 23.06 | % | |||||||||||||||||||||||
| 2020 | 1 | 43.81 | 43.81 | 30 | 0.68 | % | 1.40 | % | 1.40 | % | 14.96 | % | 14.96 | % | |||||||||||||||||||||||
| 2019 | 1 | 38.10 | 38.10 | 26 | 0.81 | % | 1.40 | % | 1.40 | % | 31.09 | % | 31.09 | % | |||||||||||||||||||||||
| 2018 | 1 | 29.07 | 29.07 | 20 | 0.75 | % | 1.40 | % | 1.40 | % | (5.71 | )% | (5.71 | )% | |||||||||||||||||||||||
| MFS Research SC | |||||||||||||||||||||||||||||||||||||
| 2022 | 1 | 40.67 | 40.67 | 47 | 0.18 | % | 1.15 | % | 1.15 | % | (18.38 | )% | (18.38 | )% | |||||||||||||||||||||||
| 2021 | 1 | 49.83 | 49.83 | 64 | 0.35 | % | 1.15 | % | 1.15 | % | 23.08 | % | 23.08 | % | |||||||||||||||||||||||
| 2020 | 1 | 40.49 | 40.49 | 52 | 0.50 | % | 1.15 | % | 1.15 | % | 14.98 | % | 14.98 | % | |||||||||||||||||||||||
| 2019 | 1 | 35.21 | 35.21 | 52 | 0.56 | % | 1.15 | % | 1.15 | % | 31.08 | % | 31.08 | % | |||||||||||||||||||||||
| 2018 | 2 | 26.86 | 27.48 | 51 | 0.49 | % | 1.15 | % | 1.50 | % | (6.06 | )% | (5.73 | )% | |||||||||||||||||||||||
| MFS Total Return IC | |||||||||||||||||||||||||||||||||||||
| 2022 | 2 | 35.94 | 35.94 | 54 | 1.64 | % | 1.40 | % | 1.40 | % | (10.84 | )% | (10.84 | )% | |||||||||||||||||||||||
| 2021 | 2 | 40.31 | 40.31 | 64 | 1.81 | % | 1.40 | % | 1.40 | % | 12.52 | % | 12.52 | % | |||||||||||||||||||||||
| 2020 | 2 | 35.83 | 35.83 | 58 | 2.11 | % | 1.40 | % | 1.40 | % | 8.28 | % | 8.28 | % | |||||||||||||||||||||||
| 2019 | 2 | 33.09 | 33.09 | 56 | 2.36 | % | 1.40 | % | 1.40 | % | 18.70 | % | 18.70 | % | |||||||||||||||||||||||
| 2018 | 2 | 27.88 | 27.88 | 49 | 2.22 | % | 1.40 | % | 1.40 | % | (6.94 | )% | (6.94 | )% | |||||||||||||||||||||||
| MFS Total Return SC | |||||||||||||||||||||||||||||||||||||
| 2022 | 6 | 23.97 | 17.68 | 178 | 1.43 | % | 1.15 | % | 1.75 | % | (10.87 | )% | (11.41 | )% | |||||||||||||||||||||||
| 2021 | 7 | 26.89 | 19.96 | 219 | 1.58 | % | 1.15 | % | 1.75 | % | 12.53 | % | 11.85 | % | |||||||||||||||||||||||
| 2020 | 8 | 17.85 | 33.64 | 221 | 1.93 | % | 1.15 | % | 1.75 | % | 7.60 | % | 8.26 | % | |||||||||||||||||||||||
| 2019 | 8 | 16.58 | 31.18 | 217 | 2.05 | % | 1.15 | % | 1.75 | % | 18.02 | % | 18.74 | % | |||||||||||||||||||||||
| 2018 | 10 | 14.05 | 26.36 | 220 | 1.99 | % | 1.15 | % | 1.75 | % | (7.53 | )% | (6.96 | )% | |||||||||||||||||||||||
| MFS Utilities IC | |||||||||||||||||||||||||||||||||||||
| 2022 | 0 | * | 56.65 | 56.65 | 5 | 2.39 | % | 1.40 | % | 1.40 | % | (0.65 | )% | (0.65 | )% | ||||||||||||||||||||||
| 2021 | - | 57.02 | 57.02 | 5 | 1.71 | % | 1.40 | % | 1.40 | % | 12.50 | % | 12.50 | % | |||||||||||||||||||||||
| 2020 | 0 | * | 50.68 | 50.68 | 5 | 2.31 | % | 1.40 | % | 1.40 | % | 4.42 | % | 4.42 | % | ||||||||||||||||||||||
| 2019 | - | 48.54 | 48.54 | 5 | 1.58 | % | 1.40 | % | 1.40 | % | 23.32 | % | 23.32 | % | |||||||||||||||||||||||
| 2018 | - | 39.36 | 39.36 | 17 | 1.12 | % | 1.40 | % | 1.40 | % | (0.36 | )% | (0.36 | )% | |||||||||||||||||||||||
127
| 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 Utilities SC | |||||||||||||||||||||||||||||||||||||
| 2022 | 5 | $ | 35.30 | $ | 51.00 | $ | 195 | 2.03 | % | 1.15 | % | 1.65 | % | (0.67 | )% | (1.17 | )% | ||||||||||||||||||||
| 2021 | 7 | 35.54 | 51.61 | 236 | 1.53 | % | 1.15 | % | 1.65 | % | 12.52 | % | 11.95 | % | |||||||||||||||||||||||
| 2020 | 7 | 18.92 | 47.58 | 223 | 2.10 | % | 1.15 | % | 1.65 | % | 3.88 | % | 4.41 | % | |||||||||||||||||||||||
| 2019 | 7 | 18.15 | 45.73 | 224 | 3.79 | % | 1.15 | % | 1.75 | % | 22.75 | % | 23.37 | % | |||||||||||||||||||||||
| 2018 | 9 | 14.73 | 37.20 | 229 | 0.89 | % | 1.15 | % | 1.65 | % | (0.86 | )% | (0.35 | )% | |||||||||||||||||||||||
| MFS VIT II Emerging Markets Equity SC | |||||||||||||||||||||||||||||||||||||
| 2022 | 0 | * | 8.58 | 8.58 | 4 | 3.69 | % | 1.30 | % | 1.30 | % | (20.98 | )% | (20.98 | )% | ||||||||||||||||||||||
| 2021 | - | 10.86 | 10.86 | 5 | 0.28 | % | 1.30 | % | 1.30 | % | (8.23 | )% | (8.23 | )% | |||||||||||||||||||||||
| 2020 | 7 | 11.83 | 11.83 | 5 | 2.60 | % | 1.30 | % | 1.30 | % | 8.90 | % | 8.90 | % | |||||||||||||||||||||||
| 2019 | - | 10.87 | 10.87 | 5 | 0.39 | % | 1.30 | % | 1.30 | % | 18.62 | % | 18.62 | % | |||||||||||||||||||||||
| 2018 | - | 9.16 | 9.16 | 4 | 0.10 | % | 1.30 | % | 1.30 | % | (15.25 | )% | (15.25 | )% | |||||||||||||||||||||||
| MFS VIT II International Value SC | |||||||||||||||||||||||||||||||||||||
| 2022 | 1 | 19.14 | 19.14 | 14 | 0.50 | % | 1.30 | % | 1.30 | % | (24.74 | )% | (24.74 | )% | |||||||||||||||||||||||
| 2021 | 1 | 25.43 | 25.43 | 17 | 0.14 | % | 1.30 | % | 1.30 | % | 8.84 | % | 8.84 | % | |||||||||||||||||||||||
| 2020 | 0 | * | 23.36 | 23.36 | 16 | 0.77 | % | 1.30 | % | 1.30 | % | 18.65 | % | 18.65 | % | ||||||||||||||||||||||
| 2019 | 1 | 19.69 | 19.69 | 15 | 1.56 | % | 1.30 | % | 1.30 | % | 24.02 | % | 24.02 | % | |||||||||||||||||||||||
| 2018 | 1 | 15.88 | 15.88 | 13 | 1.57 | % | 1.30 | % | 1.30 | % | (10.90 | )% | (10.90 | )% | |||||||||||||||||||||||
| MFS VIT II MA Investors Growth Stock SC | |||||||||||||||||||||||||||||||||||||
| 2022 | 5 | 21.56 | 20.56 | 107 | 0.00 | % | 1.05 | % | 1.65 | % | (20.29 | )% | (20.77 | )% | |||||||||||||||||||||||
| 2021 | 6 | 27.05 | 25.96 | 145 | 0.03 | % | 1.05 | % | 1.65 | % | 24.34 | % | 23.59 | % | |||||||||||||||||||||||
| 2020 | - | 21.00 | 21.76 | 136 | 0.20 | % | 1.05 | % | 1.65 | % | 20.19 | % | 20.92 | % | |||||||||||||||||||||||
| 2019 | 7 | 17.47 | 17.99 | 132 | 0.40 | % | 1.05 | % | 1.65 | % | 37.29 | % | 38.12 | % | |||||||||||||||||||||||
| 2018 | 11 | 12.73 | 13.03 | 143 | 0.34 | % | 1.05 | % | 1.65 | % | (1.09 | )% | (0.48 | )% | |||||||||||||||||||||||
| MFS VIT Total Return Bond Series SC | |||||||||||||||||||||||||||||||||||||
| 2022 | 102 | 11.80 | 10.04 | 1,107 | 2.40 | % | 1.15 | % | 1.75 | % | (15.17 | )% | (15.68 | )% | |||||||||||||||||||||||
| 2021 | 109 | 13.91 | 11.91 | 1,399 | 2.55 | % | 1.15 | % | 1.75 | % | (2.20 | )% | (2.80 | )% | |||||||||||||||||||||||
| 2020 | 105 | 12.25 | 14.23 | 1,381 | 3.03 | % | 1.15 | % | 1.75 | % | 6.28 | % | 6.93 | % | |||||||||||||||||||||||
| 2019 | 126 | 11.53 | 13.30 | 1,553 | 3.19 | % | 1.15 | % | 1.75 | % | 8.00 | % | 8.66 | % | |||||||||||||||||||||||
| 2018 | 149 | 10.67 | 12.24 | 1,681 | 3.15 | % | 1.15 | % | 1.75 | % | (3.06 | )% | (2.47 | )% | |||||||||||||||||||||||
128
| 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 Value SC | |||||||||||||||||||||||||||||||||||||
| 2022 | 14 | $ | 32.06 | $ | 25.46 | $ | 398 | 1.07 | % | 1.15 | % | 1.75 | % | (7.22 | )% | (7.78 | )% | ||||||||||||||||||||
| 2021 | 17 | 34.55 | 27.61 | 511 | 1.14 | % | 1.15 | % | 1.75 | % | 23.72 | % | 22.97 | % | |||||||||||||||||||||||
| 2020 | 19 | 22.45 | 27.93 | 482 | 1.25 | % | 1.15 | % | 1.75 | % | 1.42 | % | 2.03 | % | |||||||||||||||||||||||
| 2019 | 20 | 22.14 | 27.37 | 495 | 1.95 | % | 1.15 | % | 1.75 | % | 27.24 | % | 28.02 | % | |||||||||||||||||||||||
| 2018 | 23 | 17.40 | 21.38 | 445 | 1.39 | % | 1.15 | % | 1.75 | % | (11.93 | )% | (11.39 | )% | |||||||||||||||||||||||
| Morgan Stanley VIF, Inc. Global Real Estate II | |||||||||||||||||||||||||||||||||||||
| 2022 | 23 | 16.27 | 10.00 | 247 | 4.19 | % | 1.15 | % | 1.75 | % | (27.04 | )% | (27.49 | )% | |||||||||||||||||||||||
| 2021 | 27 | 22.30 | 13.78 | 393 | 2.35 | % | 1.15 | % | 1.75 | % | 22.41 | % | 21.67 | % | |||||||||||||||||||||||
| 2020 | 32 | 11.33 | 18.22 | 375 | 4.04 | % | 1.15 | % | 1.75 | % | (16.34 | )% | (15.83 | )% | |||||||||||||||||||||||
| 2019 | 27 | 13.54 | 21.64 | 394 | 2.69 | % | 1.15 | % | 1.75 | % | 15.99 | % | 16.70 | % | |||||||||||||||||||||||
| 2018 | 27 | 11.68 | 18.55 | 337 | 3.01 | % | 1.15 | % | 1.75 | % | (9.81 | )% | (9.26 | )% | |||||||||||||||||||||||
| PIMCO VIT All Asset Advisor | |||||||||||||||||||||||||||||||||||||
| 2022 | 5 | 12.82 | 12.34 | 58 | 2.01 | % | 1.30 | % | 1.65 | % | (13.01 | )% | (13.32 | )% | |||||||||||||||||||||||
| 2021 | 20 | 14.74 | 14.10 | 292 | 11.23 | % | 1.30 | % | 1.75 | % | 14.53 | % | 14.01 | % | |||||||||||||||||||||||
| 2020 | 23 | 12.37 | 12.87 | 287 | 2.74 | % | 1.30 | % | 1.75 | % | 6.02 | % | 6.51 | % | |||||||||||||||||||||||
| 2019 | 25 | 11.67 | 12.08 | 301 | 5.11 | % | 1.30 | % | 1.75 | % | 9.79 | % | 10.29 | % | |||||||||||||||||||||||
| 2018 | 5 | 10.70 | 10.96 | 52 | 1.67 | % | 1.30 | % | 1.65 | % | (7.01 | )% | (6.68 | )% | |||||||||||||||||||||||
| PIMCO VIT Global Diversified Allocation Portfolio | |||||||||||||||||||||||||||||||||||||
| 2022 | 73 | 12.31 | 11.89 | 898 | 3.33 | % | 1.30 | % | 1.65 | % | (17.69 | )% | (17.98 | )% | |||||||||||||||||||||||
| 2021 | 64 | 14.96 | 14.50 | 952 | 9.55 | % | 1.30 | % | 1.65 | % | 7.10 | % | 6.73 | % | |||||||||||||||||||||||
| 2020 | 71 | 13.59 | 13.97 | 989 | 3.02 | % | 1.30 | % | 1.65 | % | 2.28 | % | 2.64 | % | |||||||||||||||||||||||
| 2019 | 70 | 13.29 | 13.61 | 951 | 2.73 | % | 1.30 | % | 1.65 | % | 19.61 | % | 20.04 | % | |||||||||||||||||||||||
| 2018 | 78 | 11.11 | 11.34 | 887 | 1.90 | % | 1.30 | % | 1.65 | % | (10.57 | )% | (10.25 | )% | |||||||||||||||||||||||
| PIMCO VIT Long-Term US Government Advisor | |||||||||||||||||||||||||||||||||||||
| 2022 | 90 | 12.24 | 10.57 | 1,006 | 1.84 | % | 1.15 | % | 1.75 | % | (29.76 | )% | (30.19 | )% | |||||||||||||||||||||||
| 2021 | 86 | 17.42 | 15.14 | 1,382 | 1.35 | % | 1.15 | % | 1.75 | % | (5.98 | )% | (6.54 | )% | |||||||||||||||||||||||
| 2020 | 98 | 16.20 | 18.53 | 1,670 | 1.67 | % | 1.15 | % | 1.75 | % | 15.22 | % | 15.93 | % | |||||||||||||||||||||||
| 2019 | 96 | 14.06 | 15.99 | 1,425 | 2.23 | % | 1.15 | % | 1.75 | % | 11.23 | % | 11.91 | % | |||||||||||||||||||||||
| 2018 | 89 | 12.64 | 14.29 | 1,183 | 2.40 | % | 1.15 | % | 1.75 | % | (4.19 | )% | (3.60 | )% | |||||||||||||||||||||||
129
| 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 Low Duration Advisor | |||||||||||||||||||||||||||||||||||||
| 2022 | 156 | $ | 9.33 | $ | 8.85 | $ | 1,489 | 1.51 | % | 0.30 | % | 1.75 | % | (6.12 | )% | (7.48 | )% | ||||||||||||||||||||
| 2021 | 176 | 9.94 | 9.56 | 1,802 | 0.42 | % | 0.30 | % | 1.75 | % | (1.32 | )% | (2.76 | )% | |||||||||||||||||||||||
| 2020 | 188 | 9.83 | 11.04 | 1,967 | 1.11 | % | 0.30 | % | 1.75 | % | 1.09 | % | 1.71 | % | |||||||||||||||||||||||
| 2019 | 206 | 9.73 | 10.86 | 2,124 | 2.66 | % | 1.15 | % | 1.75 | % | 2.11 | % | 2.73 | % | |||||||||||||||||||||||
| 2018 | 225 | 9.53 | 10.57 | 2,261 | 1.82 | % | 1.15 | % | 1.75 | % | (1.52 | )% | (0.91 | )% | |||||||||||||||||||||||
| PIMCO VIT Real Return Advisor | |||||||||||||||||||||||||||||||||||||
| 2022 | 356 | 12.35 | 10.03 | 3,971 | 6.66 | % | 1.15 | % | 1.75 | % | (13.00 | )% | (13.53 | )% | |||||||||||||||||||||||
| 2021 | 393 | 14.20 | 11.60 | 5,039 | 4.84 | % | 1.15 | % | 1.75 | % | 4.27 | % | 3.64 | % | |||||||||||||||||||||||
| 2020 | 393 | 11.19 | 13.62 | 4,850 | 1.31 | % | 1.15 | % | 1.75 | % | 9.65 | % | 10.32 | % | |||||||||||||||||||||||
| 2019 | 486 | 10.21 | 12.34 | 5,431 | 1.61 | % | 1.15 | % | 1.75 | % | 6.44 | % | 7.08 | % | |||||||||||||||||||||||
| 2018 | 591 | 9.59 | 11.53 | 6,147 | 2.37 | % | 1.15 | % | 1.75 | % | (4.02 | )% | (3.43 | )% | |||||||||||||||||||||||
| PIMCO VIT Short-Term Advisor | |||||||||||||||||||||||||||||||||||||
| 2022 | 127 | 10.26 | 9.48 | 1,270 | 1.49 | % | 1.15 | % | 1.75 | % | (1.40 | )% | (1.99 | )% | |||||||||||||||||||||||
| 2021 | 149 | 10.40 | 9.67 | 1,519 | 1.01 | % | 1.15 | % | 1.75 | % | (1.30 | )% | (1.90 | )% | |||||||||||||||||||||||
| 2020 | 152 | 9.86 | 10.54 | 1,571 | 1.14 | % | 1.15 | % | 1.75 | % | 0.35 | % | 0.97 | % | |||||||||||||||||||||||
| 2019 | 176 | 9.82 | 10.44 | 1,795 | 2.37 | % | 1.15 | % | 1.75 | % | 0.90 | % | 1.51 | % | |||||||||||||||||||||||
| 2018 | 194 | 9.73 | 10.28 | 1,960 | 2.11 | % | 1.15 | % | 1.75 | % | (0.35 | )% | 0.26 | % | |||||||||||||||||||||||
| PIMCO VIT Total Return Advisor | |||||||||||||||||||||||||||||||||||||
| 2022 | 911 | 8.55 | 9.72 | 9,525 | 2.44 | % | 0.30 | % | 1.75 | % | (14.64 | )% | (15.88 | )% | |||||||||||||||||||||||
| 2021 | 959 | 10.02 | 11.55 | 11,886 | 1.73 | % | 0.30 | % | 1.75 | % | (1.66 | )% | (3.09 | )% | |||||||||||||||||||||||
| 2020 | 906 | 10.19 | 13.86 | 11,581 | 2.01 | % | 0.30 | % | 1.75 | % | 6.64 | % | 7.29 | % | |||||||||||||||||||||||
| 2019 | 1,056 | 11.18 | 12.91 | 12,589 | 2.95 | % | 1.15 | % | 1.75 | % | 6.36 | % | 7.00 | % | |||||||||||||||||||||||
| 2018 | 1,224 | 10.51 | 12.07 | 13,656 | 2.45 | % | 1.15 | % | 1.75 | % | (2.38 | )% | (1.78 | )% | |||||||||||||||||||||||
| Protective Life Dynamic Allocation Series - Conservative | |||||||||||||||||||||||||||||||||||||
| 2022 | 158 | 10.64 | 10.64 | 1,676 | 1.43 | % | 1.30 | % | 1.30 | % | (17.78 | )% | (17.78 | )% | |||||||||||||||||||||||
| 2021 | 63 | 12.94 | 12.94 | 816 | 0.88 | % | 1.30 | % | 1.30 | % | 7.31 | % | 7.31 | % | |||||||||||||||||||||||
| 2020 | 63 | 12.06 | 12.06 | 764 | 1.14 | % | 1.30 | % | 1.30 | % | 2.15 | % | 2.15 | % | |||||||||||||||||||||||
| 2019 | 65 | 11.80 | 11.80 | 767 | 1.53 | % | 1.30 | % | 1.30 | % | 8.54 | % | 8.54 | % | |||||||||||||||||||||||
| 2018 | 66 | 10.88 | 10.88 | 723 | 1.92 | % | 1.30 | % | 1.30 | % | (3.27 | )% | (3.27 | )% | |||||||||||||||||||||||
130
| 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) | ||||||||||||||||||||||||||||||||
| Protective Life Dynamic Allocation Series - Growth | |||||||||||||||||||||||||||||||||||||
| 2022 | 17 | $ | 12.20 | $ | 12.20 | $ | 205 | 1.11 | % | 1.30 | % | 1.30 | % | (20.61 | )% | (20.61 | )% | ||||||||||||||||||||
| 2021 | 18 | 15.37 | 15.37 | 273 | 1.00 | % | 1.30 | % | 1.30 | % | 19.22 | % | 19.22 | % | |||||||||||||||||||||||
| 2020 | 16 | 12.89 | 12.89 | 207 | 1.07 | % | 1.30 | % | 1.30 | % | (3.42 | )% | (3.42 | )% | |||||||||||||||||||||||
| 2019 | 11 | 13.35 | 13.35 | 143 | 1.28 | % | 1.30 | % | 1.30 | % | 10.54 | % | 10.54 | % | |||||||||||||||||||||||
| 2018 | 11 | 12.08 | 12.08 | 135 | 1.06 | % | 1.30 | % | 1.30 | % | (4.91 | )% | (4.91 | )% | |||||||||||||||||||||||
| Protective Life Dynamic Allocation Series - Moderate | |||||||||||||||||||||||||||||||||||||
| 2022 | 46 | 11.15 | 11.15 | 514 | 0.96 | % | 1.30 | % | 1.30 | % | (18.66 | )% | (18.66 | )% | |||||||||||||||||||||||
| 2021 | 49 | 13.71 | 13.71 | 673 | 0.73 | % | 1.30 | % | 1.30 | % | 10.86 | % | 10.86 | % | |||||||||||||||||||||||
| 2020 | 46 | 12.37 | 12.37 | 564 | 1.01 | % | 1.30 | % | 1.30 | % | 0.68 | % | 0.68 | % | |||||||||||||||||||||||
| 2019 | 40 | 12.29 | 12.29 | 497 | 1.38 | % | 1.30 | % | 1.30 | % | 9.15 | % | 9.15 | % | |||||||||||||||||||||||
| 2018 | 44 | 11.26 | 11.26 | 500 | 1.41 | % | 1.30 | % | 1.30 | % | (3.65 | )% | (3.65 | )% | |||||||||||||||||||||||
| Royce Capital Fund Micro-Cap SC | |||||||||||||||||||||||||||||||||||||
| 2022 | 31 | 19.03 | 12.83 | 463 | 0.00 | % | 1.15 | % | 1.75 | % | (23.54 | )% | (24.00 | )% | |||||||||||||||||||||||
| 2021 | 51 | 24.89 | 16.88 | 990 | 0.00 | % | 1.15 | % | 1.75 | % | 28.04 | % | 27.26 | % | |||||||||||||||||||||||
| 2020 | 63 | 13.27 | 19.44 | 972 | 0.00 | % | 1.15 | % | 1.75 | % | 21.40 | % | 22.14 | % | |||||||||||||||||||||||
| 2019 | 76 | 10.93 | 15.92 | 953 | 0.00 | % | 1.15 | % | 1.75 | % | 17.15 | % | 17.87 | % | |||||||||||||||||||||||
| 2018 | 34 | 9.33 | 13.50 | 380 | 0.00 | % | 1.15 | % | 1.75 | % | (10.88 | )% | (10.33 | )% | |||||||||||||||||||||||
| Royce Capital Fund Small-Cap SC | |||||||||||||||||||||||||||||||||||||
| 2022 | 101 | 20.79 | 15.64 | 1,785 | 0.07 | % | 1.15 | % | 1.75 | % | (10.45 | )% | (10.99 | )% | |||||||||||||||||||||||
| 2021 | 123 | 23.22 | 17.57 | 2,433 | 1.17 | % | 1.15 | % | 1.75 | % | 26.97 | % | 26.20 | % | |||||||||||||||||||||||
| 2020 | 155 | 13.92 | 18.29 | 2,423 | 0.70 | % | 1.15 | % | 1.75 | % | (8.95 | )% | (8.39 | )% | |||||||||||||||||||||||
| 2019 | 160 | 15.29 | 19.96 | 2,715 | 0.61 | % | 1.15 | % | 1.75 | % | 16.37 | % | 17.08 | % | |||||||||||||||||||||||
| 2018 | 56 | 13.14 | 17.05 | 862 | 0.14 | % | 1.15 | % | 1.75 | % | (10.11 | )% | (9.56 | )% | |||||||||||||||||||||||
| T. Rowe Price Blue Chip Growth Port II | |||||||||||||||||||||||||||||||||||||
| 2022 | 25 | 7.23 | 7.10 | 179 | 0.00 | % | 0.30 | % | 1.30 | % | (38.85 | )% | (39.46 | )% | |||||||||||||||||||||||
| 2021 | 3 | 11.72 | 11.72 | 29 | 0.00 | % | 1.30 | % | 1.30 | % | (2.76 | )% | 3.32 | % | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
131
| 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 Health Sciences Port II | |||||||||||||||||||||||||||||||||||||
| 2022 | 22 | $ | 9.35 | $ | 9.35 | $ | 201 | 0.00 | % | 1.30 | % | 1.30 | % | (13.82 | )% | (13.82 | )% | ||||||||||||||||||||
| 2021 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Templeton Developing Markets VIP CL 2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 16 | 9.62 | 9.62 | 157 | 2.43 | % | 1.30 | % | 1.30 | % | (23.00 | )% | (23.00 | )% | |||||||||||||||||||||||
| 2021 | 17 | 12.50 | 12.50 | 211 | 1.54 | % | 1.30 | % | 1.30 | % | (6.96 | )% | (6.96 | )% | |||||||||||||||||||||||
| 2020 | 56 | 13.02 | 13.43 | 742 | 1.34 | % | 1.30 | % | 1.65 | % | 15.25 | % | 15.66 | % | |||||||||||||||||||||||
| 2019 | 66 | 11.30 | 11.61 | 764 | 0.72 | % | 1.30 | % | 1.30 | % | 24.61 | % | 25.05 | % | |||||||||||||||||||||||
| 2018 | 17 | 9.29 | 9.29 | 156 | 0.44 | % | 1.30 | % | 1.30 | % | (16.90 | )% | (16.90 | )% | |||||||||||||||||||||||
| Templeton Foreign VIP CL 2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 192 | 14.49 | 9.54 | 1,957 | 2.72 | % | 1.15 | % | 1.75 | % | (8.67 | )% | (9.22 | )% | |||||||||||||||||||||||
| 2021 | 175 | 15.86 | 10.51 | 1,951 | 2.03 | % | 1.15 | % | 1.75 | % | 2.96 | % | 2.34 | % | |||||||||||||||||||||||
| 2020 | 221 | 10.27 | 15.41 | 2,417 | 2.49 | % | 1.15 | % | 1.75 | % | (2.89 | )% | (2.29 | )% | |||||||||||||||||||||||
| 2019 | 214 | 10.57 | 15.77 | 2,423 | 1.56 | % | 1.05 | % | 1.75 | % | 10.56 | % | 11.35 | % | |||||||||||||||||||||||
| 2018 | 171 | 9.56 | 14.18 | 1,745 | 2.57 | % | 1.05 | % | 1.75 | % | (16.93 | )% | (16.33 | )% | |||||||||||||||||||||||
| Templeton Global Bond VIP Fund CL 2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 516 | 12.65 | 8.07 | 4,949 | 0.00 | % | 1.15 | % | 1.75 | % | (6.04 | )% | (6.61 | )% | |||||||||||||||||||||||
| 2021 | 590 | 13.46 | 8.64 | 6,018 | 0.00 | % | 1.15 | % | 1.75 | % | (6.08 | )% | (6.65 | )% | |||||||||||||||||||||||
| 2020 | 554 | 9.26 | 14.75 | 6,036 | 8.23 | % | 1.15 | % | 1.75 | % | (6.94 | )% | (6.37 | )% | |||||||||||||||||||||||
| 2019 | 602 | 9.95 | 15.81 | 6,970 | 7.07 | % | 1.15 | % | 1.75 | % | 0.23 | % | 0.84 | % | |||||||||||||||||||||||
| 2018 | 706 | 9.93 | 15.73 | 8,134 | 0.00 | % | 1.15 | % | 1.75 | % | 0.15 | % | 0.76 | % | |||||||||||||||||||||||
| Templeton Growth VIP CL 2 | |||||||||||||||||||||||||||||||||||||
| 2022 | 7 | 18.43 | 12.89 | 105 | 0.13 | % | 1.15 | % | 1.75 | % | (12.52 | )% | (13.05 | )% | |||||||||||||||||||||||
| 2021 | 6 | 21.07 | 14.83 | 94 | 1.59 | % | 1.15 | % | 1.75 | % | 3.67 | % | 3.04 | % | |||||||||||||||||||||||
| 2020 | 19 | 13.56 | 20.32 | 281 | 1.04 | % | 1.15 | % | 1.75 | % | 3.95 | % | 4.58 | % | |||||||||||||||||||||||
| 2019 | 23 | 13.03 | 19.43 | 323 | 3.20 | % | 1.05 | % | 1.75 | % | 13.14 | % | 13.95 | % | |||||||||||||||||||||||
| 2018 | 18 | 11.51 | 17.07 | 250 | 2.44 | % | 1.05 | % | 1.75 | % | (16.35 | )% | (15.75 | )% | |||||||||||||||||||||||
132
| 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 Capital Growth | |||||||||||||||||||||||||||||||||||||
| 2022 | 3 | $ | 12.25 | $ | 12.25 | $ | 33 | 0.00 | % | 0.30 | % | 0.30 | % | (15.74 | )% | (15.74 | )% | ||||||||||||||||||||
| 2021 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Vanguard VIF Conservative Allocation Port | |||||||||||||||||||||||||||||||||||||
| 2022 | 4 | 9.74 | 9.74 | 35 | 2.41 | % | 0.30 | % | 0.30 | % | (15.15 | )% | (15.15 | )% | |||||||||||||||||||||||
| 2021 | 4 | 11.48 | 11.48 | 41 | 0.00 | % | 0.30 | % | 0.30 | % | 0.40 | % | 0.40 | % | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Vanguard VIF Equity Index | |||||||||||||||||||||||||||||||||||||
| 2022 | 6 | 12.43 | 12.43 | 75 | 1.08 | % | 0.30 | % | 0.30 | % | (18.47 | )% | (18.47 | )% | |||||||||||||||||||||||
| 2021 | 4 | 15.25 | 15.25 | 66 | 0.00 | % | 0.30 | % | 0.30 | % | 10.63 | % | 10.63 | % | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Vanguard VIF Global Bond Index | |||||||||||||||||||||||||||||||||||||
| 2022 | 4 | 8.55 | 8.55 | 33 | 2.68 | % | 0.30 | % | 0.30 | % | (13.39 | )% | (13.39 | )% | |||||||||||||||||||||||
| 2021 | 4 | 9.87 | 9.87 | 38 | 0.00 | % | 0.30 | % | 0.30 | % | (0.97 | )% | (0.97 | )% | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Vanguard VIF Growth | |||||||||||||||||||||||||||||||||||||
| 2022 | 5 | 9.32 | 9.32 | 49 | 0.00 | % | 0.30 | % | 0.30 | % | (33.56 | )% | (33.56 | )% | |||||||||||||||||||||||
| 2021 | 3 | 14.03 | 14.03 | 41 | 0.00 | % | 0.30 | % | 0.30 | % | 4.91 | % | 4.91 | % | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
133
| 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 International | |||||||||||||||||||||||||||||||||||||
| 2022 | 2 | $ | 8.98 | $ | 8.98 | $ | 22 | 0.80 | % | 0.30 | % | 0.30 | % | (30.33 | )% | (30.33 | )% | ||||||||||||||||||||
| 2021 | 1 | 12.89 | 12.89 | 15 | 0.00 | % | 0.30 | % | 0.30 | % | (5.02 | )% | (5.02 | )% | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Vanguard VIF Mid-Cap Index | |||||||||||||||||||||||||||||||||||||
| 2022 | 6 | 12.51 | 12.51 | 78 | 0.67 | % | 0.30 | % | 0.30 | % | (19.06 | )% | (19.06 | )% | |||||||||||||||||||||||
| 2021 | 3 | 15.45 | 15.45 | 43 | 0.00 | % | 0.30 | % | 0.30 | % | 9.56 | % | 9.56 | % | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Vanguard VIF Moderate Allocation Portfolio | |||||||||||||||||||||||||||||||||||||
| 2022 | 59 | 10.37 | 10.37 | 609 | 0.00 | % | 0.30 | % | 0.30 | % | (16.18 | )% | (16.18 | )% | |||||||||||||||||||||||
| 2021 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Vanguard VIF Real Estate Index | |||||||||||||||||||||||||||||||||||||
| 2022 | 2 | 11.36 | 11.36 | 22 | 1.57 | % | 0.30 | % | 0.30 | % | (26.52 | )% | (26.52 | )% | |||||||||||||||||||||||
| 2021 | 1 | 15.46 | 15.46 | 22 | 0.00 | % | 0.30 | % | 0.30 | % | 11.51 | % | 11.51 | % | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Vanguard VIF Short Term Investment Grade | |||||||||||||||||||||||||||||||||||||
| 2022 | 9 | 9.47 | 9.47 | 88 | 1.48 | % | 0.30 | % | 0.30 | % | (6.00 | )% | (6.00 | )% | |||||||||||||||||||||||
| 2021 | 8 | 10.08 | 10.08 | 80 | 0.00 | % | 0.30 | % | 0.30 | % | (0.87 | )% | (0.87 | )% | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
134
| 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 Bond Market Index | |||||||||||||||||||||||||||||||||||||
| 2022 | 13 | $ | 8.53 | $ | 8.53 | $ | 113 | 1.74 | % | 0.30 | % | 0.30 | % | (13.47 | )% | (13.47 | )% | ||||||||||||||||||||
| 2021 | 10 | 9.85 | 9.85 | 100 | 0.00 | % | 0.30 | % | 0.30 | % | (0.87 | )% | (0.87 | )% | |||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Vanguard VIF Total International Stock Market Index | |||||||||||||||||||||||||||||||||||||
| 2022 | 2 | 10.87 | 10.87 | 22 | 0.00 | % | 0.30 | % | 0.30 | % | (16.26 | )% | (16.26 | )% | |||||||||||||||||||||||
| 2021 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2020 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2019 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| 2018 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
| Western Asset Core Plus VIT II | |||||||||||||||||||||||||||||||||||||
| 2022 | 26 | 8.22 | 8.22 | 217 | 3.04 | % | 1.30 | % | 1.30 | % | (18.35 | )% | (18.35 | )% | |||||||||||||||||||||||
| 2021 | 4 | 10.06 | 10.06 | 42 | 23.66 | % | 1.30 | % | 1.30 | % | (0.22 | )% | (0.22 | )% | |||||||||||||||||||||||
| 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 respective 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.
135
(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) Expense ratio, unit value and total return minimum and maximum are the same where there is only one active contract level charge for the subaccount.
136
| 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.
137
Protective Life and Annuity 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, 2020 |
Independent Auditors’ Report
The Board
of Directors
Protective Life and Annuity Insurance Company:
Opinions
We have audited the statutory financial statements of Protective Life and Annuity 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 Alabama Department of Insurance 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 Alabama Department of Insurance, 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 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.
1
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 Alabama Department of Insurance. 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.
2
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 27, 2023
3
PROTECTIVE LIFE AND ANNUITY 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 - $4,548,841; 2021 - $5,878,469) | $ | 5,118,192 | $ | 5,352,637 | |||
| Preferred stocks (fair value: 2022 - $10,289; 2021 - $16,515) | 11,564 | 15,926 | |||||
| Common stocks-unaffiliated (cost: 2022 - $3,106; 2021 - $3,414) | 3,112 | 3,414 | |||||
| Mortgage loans on real estate | 325,025 | 343,496 | |||||
| Contract loans | 49,801 | 50,539 | |||||
| Cash | 2,382 | 25,369 | |||||
| Cash equivalents | 54,322 | 66,247 | |||||
| Short-term investments | — | 1,126 | |||||
| Other invested assets | 38,780 | 38,831 | |||||
| Receivable for securities | 29 | 26 | |||||
| Derivatives | 4,532 | 34,189 | |||||
| Derivative collateral and receivables | 3,758 | 1,985 | |||||
| Total cash and investments | 5,611,497 | 5,933,785 | |||||
| Amounts recoverable from reinsurers | 1,717 | 4,813 | |||||
| Deferred and uncollected premiums | 4,830 | 2,943 | |||||
| Investment income due and accrued | 49,913 | 50,851 | |||||
| Deferred tax asset | 15,960 | 17,412 | |||||
| Other assets | 6,352 | 21,667 | |||||
| Assets held in Separate Accounts | 165,665 | 179,170 | |||||
| Total admitted assets | $ | 5,855,934 | $ | 6,210,641 | |||
(Continued)
4
PROTECTIVE LIFE AND ANNUITY 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 | $ | 4,954,871 | $ | 5,299,263 | |||
| Accident and health | 8,273 | 2,128 | |||||
| Liability for deposit-type contracts | 34,080 | 29,294 | |||||
| Policy and contract claims: | |||||||
| Life | 25,938 | 27,707 | |||||
| Accident and health | 1,214 | 15 | |||||
| Other policyholders' funds and policy and contract liabilities | 11,120 | 4,480 | |||||
| Interest maintenance reserve (IMR) | 45,437 | 50,495 | |||||
| Transfers to (from) Separate Accounts due or accrued, net | (2,889 | ) | 146 | ||||
| Taxes, licenses and fees due or accrued | (62 | ) | 490 | ||||
| Current federal income taxes | 733 | 2,357 | |||||
| Remittances and items not allocated | 5,594 | 2,696 | |||||
| Borrowed money | 6,255 | 33,086 | |||||
| Asset valuation reserve (AVR) | 39,543 | 32,597 | |||||
| Payable to parent, subsidiaries, and affiliates | 1,058 | 1,215 | |||||
| Payable for securities | 274 | 115 | |||||
| Derivatives | 2,835 | 31,730 | |||||
| Derivative collateral and payables | 1,000 | 1,276 | |||||
| Other liabilities | 12,198 | 7,014 | |||||
| Liabilities held in Separate Accounts | 165,665 | 179,170 | |||||
| Total liabilities | 5,313,137 | 5,705,274 | |||||
| Capital and surplus: | |||||||
| Common stock, $10.00 par value; 500,000 shares authorized, 250,000 shares issued and outstanding | 2,500 | 2,500 | |||||
| Preferred stocks, $1 par value, shares authorized, issued and outstanding: 2,000 | 2 | 2 | |||||
| Gross paid-in and contributed surplus | 529,569 | 529,569 | |||||
| Unassigned funds - surplus | 10,726 | (26,704 | ) | ||||
| Total capital and surplus | 542,797 | 505,367 | |||||
| Total liabilities and capital and surplus | $ | 5,855,934 | $ | 6,210,641 | |||
See Notes to the Financial Statements (Statutory Basis).
5
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
(Statutory Basis)
| Years Ended December 31 | ||||||||||||
| 2022 | 2021 | 2020 | ||||||||||
| ($ in thousands) | ||||||||||||
| Revenue: | ||||||||||||
| Premiums and annuity considerations | $ | 124,543 | $ | 181,915 | $ | 414,070 | ||||||
| Considerations for supplementary contracts with life contingencies | 797 | 697 | 559 | |||||||||
| Net investment income | 212,688 | 213,965 | 223,009 | |||||||||
| Commissions and expense allowances on reinsurance ceded | 3,171 | 2,965 | 2,779 | |||||||||
| Amortization of interest maintenance reserve | 5,065 | 5,518 | 5,307 | |||||||||
| Net gain (loss) from operations from Separate Accounts | (704 | ) | (79 | ) | 135 | |||||||
| Reserve adjustments on reinsurance ceded | (16,533 | ) | (14,802 | ) | (12,562 | ) | ||||||
| Other income | 10,043 | 10,009 | 10,549 | |||||||||
| Total revenue | 339,070 | 400,188 | 643,846 | |||||||||
| Benefits and expenses: | ||||||||||||
| Death and annuity benefits | 186,236 | 173,025 | 172,725 | |||||||||
| Accident and health benefits | 2,457 | 649 | 754 | |||||||||
| Surrender benefits and other fund withdrawals | 411,753 | 268,071 | 272,864 | |||||||||
| Other policy and contract benefits | 4,077 | 4,326 | 3,434 | |||||||||
| Increase (decrease) in aggregate reserves | (338,248 | ) | (145,907 | ) | 124,955 | |||||||
| Commissions and expense allowances on reinsurance assumed | 773 | 1,256 | 2,545 | |||||||||
| Commissions | 10,332 | 8,985 | 12,782 | |||||||||
| General expenses | 24,063 | 19,767 | 22,120 | |||||||||
| Insurance taxes, licenses, and fees | 3,931 | 5,559 | 3,310 | |||||||||
| Transfers to (from) Separate Accounts, net | (10,399 | ) | 14,853 | (21,627 | ) | |||||||
| Other expenses | (697 | ) | (20 | ) | 2,431 | |||||||
| Total benefits and expenses | 294,278 | 350,564 | 596,293 | |||||||||
| Net income (loss) from operations before dividends to policyholders and federal income taxes | 44,792 | 49,624 | 47,553 | |||||||||
| Dividends to policyholders | 1,089 | 1,088 | 1,097 | |||||||||
| Federal income tax expense (benefit) | (25 | ) | 3,531 | 5,889 | ||||||||
| Net income (loss) from operations | 43,728 | 45,005 | 40,567 | |||||||||
| Net realized capital gains (losses) (less $890; $19; and $1,448 of capital gains tax (benefit) in 2022, 2021, and 2020, respectively, and excluding $6; $5,091; and $4,731 transferred to the IMR in 2022, 2021 and 2020, respectively) | 2,924 | (2,257 | ) | (9,267 | ) | |||||||
| Net income (loss) | $ | 46,652 | $ | 42,748 | $ | 31,300 | ||||||
See Notes to the Financial Statements (Statutory Basis).
6
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS
(Statutory Basis)
| ($ in thousands) | ||||
| Capital and surplus, December 31, 2019 | $ | 345,491 | ||
| Net income | 31,300 | |||
| Change in nonadmitted assets and related items | (2,104 | ) | ||
| Change in unauthorized reinsurance | (1 | ) | ||
| Change in asset valuation reserve | (2,788 | ) | ||
| Change in net deferred income tax | 77 | |||
| Change in net unrealized capital gains and losses, less capital gains tax of $127 | 478 | |||
| Contribution from parent | 100,000 | |||
| Change in surplus as a result of reinsurance | (313 | ) | ||
| Change in reserve on account of change in valuation basis | (201 | ) | ||
| Capital and surplus, December 31, 2020 | $ | 471,939 | ||
| Net income | 42,748 | |||
| Change in nonadmitted assets and related items | 3,278 | |||
| Change in unauthorized reinsurance | (1 | ) | ||
| Change in asset valuation reserve | (5,491 | ) | ||
| Change in net deferred income tax | (5,578 | ) | ||
| Change in net unrealized capital gains and losses, less capital gains tax (benefit) of $(335) | (1,259 | ) | ||
| Change in surplus as a result of reinsurance | (269 | ) | ||
| Capital and surplus, December 31, 2021 | $ | 505,367 | ||
| Net income | 46,652 | |||
| Change in nonadmitted assets and related assets | 6,437 | |||
| Change in unauthorized reinsurance | (35 | ) | ||
| Change in asset valuation reserve | (6,947 | ) | ||
| Change in net deferred income tax | (7,925 | ) | ||
| Change in net unrealized capital gains and losses, less capital gains tax (benefit) of $(135) | (508 | ) | ||
| Change in surplus as a result of reinsurance | (244 | ) | ||
| Capital and surplus, December 31, 2022 | $ | 542,797 | ||
See Notes to the Financial Statements (Statutory Basis).
7
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CASH FLOW
(Statutory Basis)
| Years Ended December 31 | ||||||||||||
| 2022 | 2021 | 2020 | ||||||||||
| ($ in thousands) | ||||||||||||
| Cash from operations | ||||||||||||
| Premiums and annuity considerations | $ | 126,034 | $ | 179,275 | $ | 412,144 | ||||||
| Commission and expense allowances ceded | 3,171 | 2,965 | 2,779 | |||||||||
| Net investment income | 217,713 | 223,725 | 230,632 | |||||||||
| Miscellaneous income | 12,458 | 11,923 | 13,335 | |||||||||
| Benefit and loss related payments | (618,279 | ) | (458,784 | ) | (455,835 | ) | ||||||
| Commissions and expenses paid | (40,077 | ) | (35,378 | ) | (40,733 | ) | ||||||
| Net transfers from Separate Accounts | 7,364 | (7,714 | ) | 22,043 | ||||||||
| Dividends paid to policyholders | (1,085 | ) | (1,070 | ) | (1,101 | ) | ||||||
| Federal and foreign income taxes recovered (paid) | (2,489 | ) | 2,086 | (6,481 | ) | |||||||
| Net cash from operations | (295,190 | ) | (82,972 | ) | 176,783 | |||||||
| Cash from investments | ||||||||||||
| Proceeds from investments sold, matured or repaid: | ||||||||||||
| Bonds | 471,306 | 885,101 | 806,136 | |||||||||
| Stocks | 5,526 | 4,796 | 8,250 | |||||||||
| Mortgage loans | 58,327 | 11,751 | 24,883 | |||||||||
| Net gains (losses) on cash, cash equivalents and short-term investments | (1 | ) | 26 | 295 | ||||||||
| Miscellaneous proceeds | 29,816 | 3,897 | — | |||||||||
| Total investment proceeds | 564,974 | 905,571 | 839,564 | |||||||||
| Cost of investments acquired: | ||||||||||||
| Bonds | (240,912 | ) | (543,629 | ) | (1,118,177 | ) | ||||||
| Stocks | (1,146 | ) | (498 | ) | (6,256 | ) | ||||||
| Mortgage loans | (40,075 | ) | (160,865 | ) | (122,338 | ) | ||||||
| Other invested assets | — | (9,072 | ) | (9,977 | ) | |||||||
| Miscellaneous applications | (18,898 | ) | (9,817 | ) | (17,105 | ) | ||||||
| Total investments acquired | (301,031 | ) | (723,881 | ) | (1,273,853 | ) | ||||||
| Net decrease (increase) in contract loans and premium notes | 839 | 1,783 | 2,781 | |||||||||
| Net cash from investments | 264,782 | 183,473 | (431,508 | ) | ||||||||
| Cash from financing and miscellaneous sources | ||||||||||||
| Cash provided (applied): | ||||||||||||
| Capital contribution from parent | — | — | 100,000 | |||||||||
| Borrowed funds | (26,831 | ) | (38,034 | ) | 71,120 | |||||||
| Net deposits (withdrawals) from deposit-type contracts | 5,401 | (64 | ) | 772 | ||||||||
| Other cash provided (applied), net | 15,800 | (13,581 | ) | (9,415 | ) | |||||||
| Net cash from financing and miscellaneous sources | (5,630 | ) | (51,679 | ) | 162,477 | |||||||
| Net change in cash, cash equivalents, and short-term investments | (36,038 | ) | 48,822 | (92,248 | ) | |||||||
| Cash, cash equivalents, and short-term investments, beginning of year | 92,742 | 43,920 | 136,168 | |||||||||
| Cash, cash equivalents, and short-term investments, end of year | $ | 56,704 | $ | 92,742 | $ | 43,920 | ||||||
(Continued)
8
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CASH FLOW
(Statutory Basis)
| Years Ended December 31 | ||||||||||||
| 2022 | 2021 | 2020 | ||||||||||
| ($ in thousands) | ||||||||||||
| Non-cash transactions | ||||||||||||
| Non-cash exchange of securities (Investments) | $ | 24,558 | $ | 54,409 | $ | 88,224 | ||||||
| Non-cash change in retained asset account (Operations and Financing and miscellaneous sources) | 615 | 43 | 1,793 | |||||||||
| Non-cash change in reinsurance loss contingency reserve (Operations and Financing and miscellaneous sources) | 886 | 35 | 1,924 | |||||||||
| Reclassification of securities from Bonds to Other invested assets (Investments) | — | — | 1,584 | |||||||||
See Notes to the Financial Statements (Statutory Basis).
9
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
| 1. | General |
Basis of Presentation – The statutory basis financial statements of Protective Life and Annuity Insurance Company (the “Company”) have been prepared in conformity with accounting practices prescribed or permitted by the Alabama Department of Insurance (the “Department”). The Company is a stock, legal reserve, life and accident and health insurer.
All outstanding shares of the Company’s common stock are owned by Protective Life Insurance Company (“PLICO”), a life insurance company domiciled in the State of Tennessee. PLICO is a wholly owned subsidiary of 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 the Company’s common stock from Dai-ichi Life to Dai-ichi Life International. Dai-ichi Life remains the ultimate controlling parent corporation of PLC. Other affiliated insurers include Golden Gate Captive Insurance Company, Protective Property & Casualty Insurance Company, MONY Life Insurance Company, and West Coast Life Insurance Company.
The Department recognizes only statutory practices prescribed or permitted by the State of Alabama for determining and reporting the financial condition and results of operations of an insurance company, and for determining its solvency under Alabama 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 Alabama. The State of Alabama has adopted certain prescribed accounting practices that differ from those found in NAIC SAP, none of which had a material impact on the Company’s Statements of Admitted Assets, Liabilities, and Capital and Surplus as of December 31, 2022 and 2021, or Statements of Operations for each of the years in the three-year period ended December 31, 2022.
The Company has 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 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 is an entity through which PLC markets, distributes and services life insurance and annuity products primarily in the State of New York. New York direct premiums were 95.0%, 96.6%, and 98.2% of the Company’s total direct premiums and New York direct annuity premiums accounted for 36.2%, 30.4%, and 79.3% of the Company’s total direct premiums in 2022, 2021, and 2020, respectively.
10
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
The Company has no employees, and, therefore, has no employee benefit plans.
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.
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.
The Company’s investments in surplus notes with an NAIC Credit Rating Providers (“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”.
Common stocks are generally stated at a fair value obtained from a nationally recognized pricing service.
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.
11
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
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 surplus. Interest is capitalized on the 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.
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 annuity products, including the guaranteed living withdrawal benefit (“GLWB”) rider associated with variable annuity (“VA”) contracts. The derivative instruments the Company may use include interest rate swaps, interest rate swaptions, interest rate futures, equity futures, equity options, foreign currency futures, variance 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 the VA GLWB products and are correlated with the equity markets, interest rates, foreign currency levels, and overall volatility.
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 the S&P equity index. As of December 31, 2022 and 2021, the Company had paid a net amount of $1.0 million and $1.8 million, respectively, for its open options.
12
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
The Company uses US equity index futures to manage its equity risk in its fixed indexed annuity products. 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 uses a combination of derivative instruments to mitigate volatility, equity, and currency risk related to certain guaranteed minimum benefits, including GLWB benefits within its VA products.
The Company uses 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 uses index put options which have underlyings based upon several equity indexes, both U.S. and foreign. As of December 31, 2022 and 2021, the Company had paid $2.1 million and $2.1 million, respectively, for its open put options.
None of the Company’s derivative instruments qualify for hedge accounting. Therefore, all derivative instruments 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 changes in unrealized gains (losses) in surplus. Upon termination, the realized gain or loss is recorded in realized capital gains and losses.
During the years ended December 31, 2022, 2021, and 2020, the Company had $0.1 million of unrealized gains, $1.4 million of unrealized losses, and $0.6 million of unrealized gains, respectively, related to derivatives that did not qualify for hedge accounting.
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.
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.
13
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
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. 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 2.25% to 6.0% interest. 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.
14
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
As of December 31, 2022 and 2021, the Company had $0.6 billion and $0.7 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 Alabama. Reserves to cover this insurance totaled $8.0 million and $8.5 million as of December 31, 2022 and 2021, respectively, and were reported in “Aggregate reserves: Life policies and contracts” in the Statements of Admitted Assets, Liabilities, and Capital and Surplus. Tabular interest, tabular less actual reserves released, and tabular cost are determined by formula. Other net changes in reserves for the years ended December 31 are as follows:
2022
| ORDINARY | GROUP | |||||||||||||||||||||||||||||||
| ITEM | Total | Industrial Life | Life Insurance | Individual Annuities | Supplementary Contracts | Credit Life Group and Individual | Life Insurance | Annuities | ||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||
| Excess interest on universal life products | $ | 11,451 | $ | — | $ | 10,242 | $ | — | $ | — | $ | — | $ | 1,209 | $ | — | ||||||||||||||||
| Total | $ | 11,451 | $ | — | $ | 10,242 | $ | — | $ | — | $ | — | $ | 1,209 | $ | — | ||||||||||||||||
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 | $ | 11,768 | $ | — | $ | 10,528 | $ | — | $ | — | $ | — | $ | 1,240 | $ | — | ||||||||||||||||
| Total | $ | 11,768 | $ | — | $ | 10,528 | $ | — | $ | — | $ | — | $ | 1,240 | $ | — | ||||||||||||||||
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 due to VM-21 | $ | 201 | $ | — | $ | — | $ | 201 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
| Excess interest on universal life products | 12,010 | — | 10,704 | — | — | — | 1,306 | — | ||||||||||||||||||||||||
| Total | $ | 12,211 | $ | — | $ | 10,704 | $ | 201 | $ | — | $ | — | $ | 1,306 | $ | — | ||||||||||||||||
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.
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.
Certain of the Company’s VA contracts contain guaranteed minimum death benefit (“GMDB”) and GLWB 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 or maximum account value on prior anniversaries. All guarantees are reduced for prior partial withdrawal activity. The charge for the GMDB is based on a percentage of account value. The Company does not reinsure the GMDB feature. The VA GLWB applies to amounts withdrawn. The charge is a percentage of the guaranteed benefit base, and the annual guaranteed withdrawal amount is equal to 4.0% to 7.0% depending on the contract owner's age. Effective January 1, 2020, statutory reserves 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”). Please see Note 3 – Accounting Changes for the effect of this reserve change on the Company’s financial statements. There is not a standalone reserve for GMDB or GLWB. The base reserve incorporates the risk of all these guarantees.
15
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
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 0.75% to 6.0% for immediate annuities during 2022. Interest rates credited ranged from 0.75% to 6.0% for immediate annuities during 2021. Interest rates credited ranged from 1.0% to 6.0% for immediate annuities during 2020.
Liabilities for Single Premium Deferred Annuity (“SPDA”) contracts are calculated in accordance with Actuarial Guideline 33. The reserves are calculated using a CARVM approach such that the reserve equals the greatest present value of future benefits floored at the cash surrender value of the contract. Future benefits include death, surrender and annuitization. Mortality and discount rates used in the reserve calculation are specified by regulatory authorities.
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 $50.8 million and $45.0 million at 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.
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 Statement of Statutory Accounting Principles (“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.
16
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
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.
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.
17
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
Separate Accounts
The Company issues both market value adjusted annuities and variable annuities. Excluding any contract guarantees of either a minimum return or account value upon death or annuitization, variable annuity policyholders 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. Fees charged on Separate Account contract owner deposits are included 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 to the general account 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:
| 1. | 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; |
| 2. | 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; |
| 3. | 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; |
| 4. | 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; |
18
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
| 5. | 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; |
| 6. | Certain assets and liabilities are reported net of ceded reinsurance balances, which is not permitted by GAAP; |
| 7. | 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; |
| 8. | 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; |
| 9. | 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; |
| 10. | 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; |
| 11. | 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; |
| 12. | 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); |
| 13. | 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; |
| 14. | 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; |
19
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
| 15. | 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; |
| 16. | 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; |
| 17. | 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. |
The differences between NAIC SAP and GAAP have not been quantified as of December 31, 2022 and 2021 or for each of the years in the three-year period ended December 31, 2022; however, the differences are presumed to be material.
| 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 adoption of these revisions did not have a material effect on the Company’s financial statements.
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 $0.2 million increase 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 increase “Aggregate reserves: life policies and contracts” and decrease both “Change in reserve on account of change in valuation basis” and “Unassigned funds - surplus” by $0.2 million. In accordance with the provisions of SSAP No. 3, the $0.2 million cumulative effect represents the January 1, 2020 impact of the change.
20
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
Effective January 1, 2020, the Company adopted SSAP No. 108, “Derivative Hedging Variable Annuity Guarantees” (“SSAP No. 108”), which prescribes guidance for derivatives that hedge interest rate risk of variable annuity guarantees reserved under VM-21. The guidance in SSAP No. 108 is not currently applicable to the Company’s derivatives, and the adoption had no effect on the Company’s financial statements.
Effective January 1, 2020, the Company adopted revisions to SSAP No. 22. “Leases”, (“SSAP No. 22R”). SSAP No. 22R rejected GAAP guidance on operating leases, but incorporated, with modification, guidance on sale-leaseback transactions, lessor accounting and leveraged leases for all new leases, and for existing leases reassessed due to a change in terms and conditions. The adoption of these revisions had no effect on the Company’s financial statements.
Effective June 30, 2020, the Company adopted revisions to SSAP No. 105, “Working Capital Finance Investments” (“SSAP No. 105R”), which provided substantive updates to the Working Capital Finance Investments Program requirements. The Company holds no working capital finance investments, and therefore this adoption had no effect on the Company’s financial statements.
| 4. | Investments |
Net Investment Income
Net investment income consists of the following:
| For The Years Ended December 31 |
||||||||||
| 2022 | 2021 | 2020 | ||||||||
| ($ in thousands) | ||||||||||
| Bonds | $ | 207,078 | $ | 213,108 | $ | 224,286 | ||||
| Stocks | 858 | 913 | 774 | |||||||
| Mortgage loans | 12,691 | 11,106 | 7,670 | |||||||
| Cash, cash equivalents, and short-term investments | 753 | (80 | ) | 627 | ||||||
| Contract loans | 2,538 | 2,651 | 2,943 | |||||||
| Other invested assets | 1,840 | 1,730 | 1,340 | |||||||
| Miscellaneous investment income | 355 | (19 | ) | (17 | ) | |||||
| Total investment income | 226,113 | 229,409 | 237,623 | |||||||
| Less: Investment expenses | 13,425 | 15,444 | 14,614 | |||||||
| Net investment income | $ | 212,688 | $ | 213,965 | $ | 223,009 | ||||
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. |
There was no due and accrued investment income excluded as of December 31, 2022 and 2021.
21
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
Realized Gains and Losses
Realized investment gains (losses) are summarized as follows:
| For The Years Ended December 31 | ||||||||||||
| 2022 | 2021 | 2020 | ||||||||||
| ($ in thousands) | ||||||||||||
| Bonds | $ | (223 | ) | $ | 5,989 | $ | 5,094 | |||||
| Common stocks-unaffiliated | 458 | 57 | — | |||||||||
| Preferred stocks | 32 | 511 | 1,600 | |||||||||
| Cash, cash equivalents, and short-term investments | (1 | ) | 26 | 296 | ||||||||
| Derivative instruments | 3,554 | (3,834 | ) | (4,235 | ) | |||||||
| Other investments | — | 136 | (47 | ) | ||||||||
| Other-than-temporary impairments | — | (32 | ) | (5,796 | ) | |||||||
| Less: | ||||||||||||
| Amount transferred to interest maintenance reserve | 6 | 5,091 | 4,731 | |||||||||
| Federal income tax expense | 890 | 19 | 1,448 | |||||||||
| Net realized investment gains (losses) | $ | 2,924 | $ | (2,257 | ) | $ | (9,267 | ) | ||||
Proceeds from the sales of investments in bonds, common stocks, and preferred stocks during 2022, 2021, and 2020 were $142.2 million, $176.9 million and $171.8 million, respectively. The Company realized gross gains of $2.2 million, $7.3 million, and $8.1 million on those sales for the years ended 2022, 2021, and 2020, respectively. Gross losses of $1.9 million, $0.7 million, and $1.1 million were realized on those sales for the years ended December 31, 2022, 2021, and 2020, respectively.
Unrealized Gains and Losses
The change in net unrealized capital gains and losses included in unassigned funds is as follows:
| For The Years Ended December 31 | ||||||||||||
| 2022 | 2021 | 2020 | ||||||||||
| ($ in thousands) | ||||||||||||
| Bonds | $ | 45 | $ | (40 | ) | $ | (1 | ) | ||||
| Preferred stocks | (627 | ) | (343 | ) | — | |||||||
| Common stocks | (146 | ) | 152 | 1 | ||||||||
| Derivative instruments | 85 | (1,363 | ) | 605 | ||||||||
| Less: | ||||||||||||
| Federal income tax expense (benefit) | (135 | ) | (335 | ) | 127 | |||||||
| Total change in net unrealized capital gains and losses | $ | (508 | ) | $ | (1,259 | ) | $ | 478 | ||||
During 2022, the Company recorded $0.1 million in unrealized gains on derivative instruments due to changes in fair value. The gains included $1.1 million of gains related to equity futures, which were used to mitigate risks associated with the Company’s variable annuity products. These gains were offset by $0.9 million of losses 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.
22
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
During 2021, the Company recorded $1.4 million in unrealized losses on derivative instruments due to changes in fair value. The losses included $0.8 million of losses related to equity options and $0.3 million of losses related to equity futures, which were used to mitigate risks associated with the Company’s variable annuity products. The losses also included $0.3 million of losses related to equity options, which were used to mitigate risks associated with the Company’s fixed indexed annuity products.
During 2020, the Company recorded $0.6 million in unrealized gains on derivative instruments due to changes in fair value. The gains included $0.2 million of gains related to equity options, which were used to mitigate risks associated with the Company’s variable annuity products and $0.6 million of gains related to equity options, which were used to mitigate risks associated with the Company’s fixed indexed annuity products. These gains were offset by $0.1 million of losses related to foreign currency futures and $0.1 million of losses related to equity futures, which were used to mitigate risks associated with the Company’s VA products.
Bonds and Preferred Stocks
The statement value and estimated fair value of the Company’s bond and preferred stock investments at December 31 are as follows:
| Statement Value | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
| 2022 | ($ in thousands) | |||||||||||||||
| Bonds: | ||||||||||||||||
| US Government | $ | 45,097 | $ | — | $ | (649 | ) | $ | 44,448 | |||||||
| Other governments | 17,162 | — | (2,472 | ) | 14,690 | |||||||||||
| US states, territories, and possessions | 13,504 | — | (830 | ) | 12,674 | |||||||||||
| US political subdivision | 68,047 | 17 | (3,875 | ) | 64,189 | |||||||||||
| US special revenue & special assessment | 292,101 | 3,362 | (32,014 | ) | 263,449 | |||||||||||
| Industrial and miscellaneous | 3,579,234 | 19,950 | (373,101 | ) | 3,226,083 | |||||||||||
| Hybrids | 44,382 | 1,404 | (2,208 | ) | 43,578 | |||||||||||
| Total bonds, excluding loan-backed and structured securities | 4,059,527 | 24,733 | (415,149 | ) | 3,669,111 | |||||||||||
| Loan-backed and structured securities: | ||||||||||||||||
| Residential mortgage-backed securities | 793,294 | 95 | (159,794 | ) | 633,595 | |||||||||||
| Commercial mortgage-backed securities | 203,296 | — | (14,327 | ) | 188,969 | |||||||||||
| Other loan-backed and structured securities | 62,075 | 8 | (4,917 | ) | 57,166 | |||||||||||
| Total loan-backed and structured securities | 1,058,665 | 103 | (179,038 | ) | 879,730 | |||||||||||
| Total bonds | 5,118,192 | 24,836 | (594,187 | ) | 4,548,841 | |||||||||||
| Preferred stocks | 11,564 | 108 | (1,383 | ) | 10,289 | |||||||||||
| Total bonds and preferred stocks | $ | 5,129,756 | $ | 24,944 | $ | (595,570 | ) | $ | 4,559,130 | |||||||
23
PROTECTIVE LIFE AND ANNUITY 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 | $ | 39,637 | $ | 933 | $ | — | $ | 40,570 | ||||||||
| Other governments | 28,005 | 4,546 | (125 | ) | 32,426 | |||||||||||
| US states, territories, and possessions | 13,567 | 1,516 | — | 15,083 | ||||||||||||
| US political subdivision | 71,047 | 5,610 | (4 | ) | 76,653 | |||||||||||
| US special revenue & special assessment | 298,730 | 47,247 | (643 | ) | 345,334 | |||||||||||
| Industrial and miscellaneous | 3,619,981 | 453,927 | (7,028 | ) | 4,066,880 | |||||||||||
| Hybrids | 43,051 | 7,230 | (195 | ) | 50,086 | |||||||||||
| Total bonds, excluding loan-backed and structured securities | 4,114,018 | 521,009 | (7,995 | ) | 4,627,032 | |||||||||||
| Loan-backed and structured securities: | ||||||||||||||||
| Residential mortgage-backed securities | 868,189 | 8,789 | (11,811 | ) | 865,167 | |||||||||||
| Commercial mortgage-backed securities | 296,985 | 14,030 | (251 | ) | 310,764 | |||||||||||
| Other loan-backed and structured securities | 73,445 | 2,456 | (395 | ) | 75,506 | |||||||||||
| Total loan-backed and structured securities | 1,238,619 | 25,275 | (12,457 | ) | 1,251,437 | |||||||||||
| Total bonds | 5,352,637 | 546,284 | (20,452 | ) | 5,878,469 | |||||||||||
| Preferred stocks | 15,926 | 596 | (7 | ) | 16,515 | |||||||||||
| Total bonds and preferred stocks | $ | 5,368,563 | $ | 546,880 | $ | (20,459 | ) | $ | 5,894,984 | |||||||
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 | $ | 156,223 | $ | 155,245 | ||||
| Due after 1 year through 5 years | 928,948 | 884,535 | ||||||
| Due after 5 years through 10 years | 1,209,541 | 1,084,318 | ||||||
| Due after 10 years | 1,764,815 | 1,545,013 | ||||||
| Total bonds, excluding loan-backed and structured securities | 4,059,527 | 3,669,111 | ||||||
| Total loan-backed and structured securities | 1,058,665 | 879,730 | ||||||
| Total bonds | $ | 5,118,192 | $ | 4,548,841 | ||||
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 | $ | 127,529 | $ | 129,502 | ||||
| Due after 1 year through 5 years | 731,807 | 773,756 | ||||||
| Due after 5 years through 10 years | 1,472,717 | 1,589,514 | ||||||
| Due after 10 years | 1,781,965 | 2,134,260 | ||||||
| Total bonds, excluding loan-backed and structured securities | 4,114,018 | 4,627,032 | ||||||
| Total loan-backed and structured securities | 1,238,619 | 1,251,437 | ||||||
| Total bonds | $ | 5,352,637 | $ | 5,878,469 | ||||
24
PROTECTIVE LIFE AND ANNUITY 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 | $ | 44,448 | $ | (649 | ) | $ | — | $ | — | $ | 44,448 | $ | (649 | ) | ||||||||||
| Other governments | 14,690 | (2,472 | ) | — | — | 14,690 | (2,472 | ) | ||||||||||||||||
| US states, territories, and possessions | 12,674 | (830 | ) | — | — | 12,674 | (830 | ) | ||||||||||||||||
| US political subdivision | 54,952 | (3,875 | ) | — | — | 54,952 | (3,875 | ) | ||||||||||||||||
| US special revenue & special assessment | 221,176 | (25,975 | ) | 14,631 | (6,039 | ) | 235,807 | (32,014 | ) | |||||||||||||||
| Industrial and miscellaneous | 2,709,641 | (311,729 | ) | 195,158 | (61,372 | ) | 2,904,799 | (373,101 | ) | |||||||||||||||
| Hybrids | 25,117 | (2,156 | ) | 307 | (52 | ) | 25,424 | (2,208 | ) | |||||||||||||||
| Total bonds, excluding loan-backed and structured securities | 3,082,698 | (347,686 | ) | 210,096 | (67,463 | ) | 3,292,794 | (415,149 | ) | |||||||||||||||
| Loan-backed and structured securities: | ||||||||||||||||||||||||
| Residential mortgage-backed securities | 341,417 | (70,752 | ) | 281,818 | (89,042 | ) | 623,235 | (159,794 | ) | |||||||||||||||
| Commercial mortgage-backed securities | 183,322 | (12,718 | ) | 5,647 | (1,609 | ) | 188,969 | (14,327 | ) | |||||||||||||||
| Other loan-backed and structured securities | 44,976 | (3,433 | ) | 11,204 | (1,484 | ) | 56,180 | (4,917 | ) | |||||||||||||||
| Total loan-backed and structured securities | 569,715 | (86,903 | ) | 298,669 | (92,135 | ) | 868,384 | (179,038 | ) | |||||||||||||||
| Total bonds | 3,652,413 | (434,589 | ) | 508,765 | (159,598 | ) | 4,161,178 | (594,187 | ) | |||||||||||||||
| Preferred stocks | 3,739 | (1,364 | ) | 95 | (19 | ) | 3,834 | (1,383 | ) | |||||||||||||||
| Total bonds and preferred stocks | $ | 3,656,152 | $ | (435,953 | ) | $ | 508,860 | $ | (159,617 | ) | $ | 4,165,012 | $ | (595,570 | ) | |||||||||
| 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: | ||||||||||||||||||||||||
| Other governments | $ | 3,712 | $ | (125 | ) | $ | — | $ | — | $ | 3,712 | $ | (125 | ) | ||||||||||
| US political subdivision | 456 | (4 | ) | — | — | 456 | (4 | ) | ||||||||||||||||
| US special revenue & special assessment | 20,027 | (643 | ) | — | — | 20,027 | (643 | ) | ||||||||||||||||
| Industrial and miscellaneous | 270,774 | (6,626 | ) | 8,305 | (402 | ) | 279,079 | (7,028 | ) | |||||||||||||||
| Hybrids | 3,968 | (192 | ) | 19 | (3 | ) | 3,987 | (195 | ) | |||||||||||||||
| Total bonds, excluding loan-backed and structured securities | 298,937 | (7,590 | ) | 8,324 | (405 | ) | 307,261 | (7,995 | ) | |||||||||||||||
| Loan-backed and structured securities: | ||||||||||||||||||||||||
| Residential mortgage-backed securities | 501,657 | (11,707 | ) | 3,322 | (104 | ) | 504,979 | (11,811 | ) | |||||||||||||||
| Commercial mortgage-backed securities | 7,204 | (34 | ) | 4,817 | (217 | ) | 12,021 | (251 | ) | |||||||||||||||
| Other loan-backed and structured securities | 6,755 | (55 | ) | 7,201 | (340 | ) | 13,956 | (395 | ) | |||||||||||||||
| Total loan-backed and structured securities | 515,616 | (11,796 | ) | 15,340 | (661 | ) | 530,956 | (12,457 | ) | |||||||||||||||
| Total bonds | 814,553 | (19,386 | ) | 23,664 | (1,066 | ) | 838,217 | (20,452 | ) | |||||||||||||||
| Preferred stocks | — | — | 108 | (7 | ) | 108 | (7 | ) | ||||||||||||||||
| Total bonds and preferred stocks | $ | 814,553 | $ | (19,386 | ) | $ | 23,772 | $ | (1,073 | ) | $ | 838,325 | $ | (20,459 | ) | |||||||||
25
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
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 $0, $0, and $4.4 million of OTTIs on non-loan-backed securities during 2022, 2021, and 2020, respectively.
The Company had securities with a fair value of $508.9 million in an unrealized loss position for greater than twelve months as of December 31, 2022, and the related unrealized loss of $159.6 million pertains primarily to residential mortgage-backed, energy, and insurance securities. The Company had securities with a fair value of $23.7 million in an unrealized loss position for greater than twelve months as of December 31, 2021, and the related unrealized loss of $1.1 million pertains primarily to asset-backed, energy, and pharmaceutical securities. The aggregate decline in fair value of these securities was deemed temporary due to positive factors supporting the recoverability of the respective investments. Positive factors such as credit ratings, the financial health of the investee, the continued access of the investee to capital markets, and other pertinent information.
The Company had individual bonds from the following issuers that exceeded 10% of capital and surplus as of December 31, 2022 and 2021.
| 2022 | 2021 | |||||||
| Carrying Value | Carrying Value | |||||||
| ($ in thousands) | ||||||||
| Fannie Mae | $ | 77,768 | $ | 83,916 | ||||
| Freddie Mac | 56,432 | 61,493 | ||||||
As of December 31, 2022 and 2021, bonds and cash having a fair value of $6.4 million and $6.7 million were on deposit with various governmental authorities as required by law.
The Company held no securities with a 5GI NAIC rating 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, no OTTIs were recorded 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.
26
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
During 2022, 2021 and 2020, the Company recognized $0, less than $0.1 million, and $1.4 million, respectively, of OTTIs on loan-backed securities.
All impaired securities (fair value is less than cost or amortized cost) for which an OTTI has not been recognized in the Statements of Operations as a realized loss (including securities with a recognized OTTI for non-interest related declines when a non-recognized interest related impairment remains) are as follows as of December 31:
| 2022 | 2021 | |||||||
| ($ in thousands) | ||||||||
| The aggregate amount of unrealized losses: | ||||||||
| Less than 12 months | $ | 86,903 | $ | 11,796 | ||||
| Twelve months or longer | $ | 92,135 | $ | 683 | ||||
| The aggregate related fair value of securities with unrealized losses: | ||||||||
| Less than 12 months | $ | 569,715 | $ | 515,616 | ||||
| Twelve months or longer | $ | 298,669 | $ | 15,359 | ||||
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 (if any) 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 following information relates to the Company’s other investments with subprime exposure
| Actual Cost | Book/ Adjusted Carrying Value (excluding interest) | Fair Value | Other Than Temporary Impairment Losses Recognized | |||||||||||||
| 2022 | ($ in thousands) | |||||||||||||||
| Residential mortgage-backed securities | $ | 91 | $ | 93 | $ | 91 | $ | — | ||||||||
| 2021 | ||||||||||||||||
| Residential mortgage-backed securities | $ | 703 | $ | 719 | $ | 794 | $ | 216 | ||||||||
27
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
As of December 31, 2020, the Company had recognized $0.2 million of OTTI losses on residential mortgage-backed securities with subprime exposure held as of December 31, 2020.
Mortgage Loans
The Company's mortgage loan portfolio was characterized by the following as of December 31:
| Percent of Portfolio | ||||||||
| 2022 | 2021 | |||||||
| Retail | 15.8 | % | 18.6 | % | ||||
| Other commercial | 12.9 | 12.5 | ||||||
| Apartments | 22.5 | 19.2 | ||||||
| Industrial | 33.1 | 31.4 | ||||||
| Office | 15.5 | 18.1 | ||||||
| Mixed Use | 0.2 | 0.2 | ||||||
| Total | 100.0 | % | 100.0 | % | ||||
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 | |||||||
| Tennessee | 10.4 | % | Tennessee | 10.4 | % | |||||
| Alabama | 9.8 | Alabama | 9.6 | |||||||
| Michigan | 9.7 | Michigan | 7.3 | |||||||
| California | 6.3 | Wisconsin | 7.3 | |||||||
| Utah | 6.1 | New York | 6.8 | |||||||
| Texas | 5.6 | Arizona | 6.4 | |||||||
| California | 6.2 | |||||||||
The minimum and maximum lending rates for commercial mortgage loans originated by the Company during 2022 were 3.0% and 3.625%, respectively. The minimum and maximum lending rates for commercial mortgage loans originated by the Company during 2021 were 2.5% and 3.25%, respectively.
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 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 and 2021, the Company had no mortgage loans that exceeded a 75% loan to value ratio based on the most recent appraisal. For loans the Company held as of December 31, 2022 and 2021, the maximum percentage of any one loan to the value of security at the time of the loan did not exceed 75%.
28
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
As of December 31, 2022 and 2021, the Company did not have any mortgages with interest more than 90 days past due.
As of December 31, 2022 and 2021, no taxes and/or assessments had been advanced but not repaid or included in the mortgage loan total.
The Company’s mortgage loans of $325.0 million and $343.5 million as of December 31, 2022 and 2021, respectively, were current.
As of December 31, 2022 and 2021, the Company had no foreclosed properties or impaired loans. The Company reported no valuation allowances on any loans at either December 31, 2022 and 2021. No activity occurred in the allowance for credit losses during 2022, 2021, and 2020.
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 8 loans with $21.5 million in unpaid principal balance under the Loan Modification Program. The modifications under this program may include 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.
The Company did not restructure any debt during 2022 and 2021.
Common Stock-Federal Home Loan Bank (“FHLB”) Agreements
The Company is a member of the FHLB of Atlanta. Through its membership, the Company may receive cash advances as a result of entering repurchase agreements with the FHLB of Atlanta. The Company had no advances outstanding as of December 31, 2022 and 2021.
Amounts received under repurchase agreements are accounted for pursuant to SSAP No. 103R, “Transfers and Servicing of Financial Assets and Extinguishments of Liabilities.”
The Company’s FHLB stock was classified as “Membership stock – Class B” and was not eligible for redemption. All of the FHLB stock was held in the General Account and totaled $3.1 million and $3.2 million as of December 31, 2022 and 2021, respectively.
29
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
Restricted Assets
The Company had the following restricted assets, all within the General Account, as of December 31:
| Restricted Asset Category | 2022 | 2021 | Increase/ (Decrease) | % of Admitted Assets | ||||||||||||
| ($ in thousands) | ||||||||||||||||
| Subject to Repurchase agreements | $ | 8,386 | $ | 26,937 | $ | (18,551 | ) | 0.14 | % | |||||||
| Federal home loan bank capital stock | 3,105 | 3,199 | (94 | ) | 0.05 | |||||||||||
| On deposit with states | 6,592 | 6,532 | 60 | 0.11 | ||||||||||||
| Collateral for derivative instruments | 8,399 | 6,700 | 1,699 | 0.14 | ||||||||||||
| Total restricted assets | $ | 26,482 | $ | 43,368 | $ | (16,886 | ) | 0.44 | % | |||||||
The Company had no other restricted assets as of December 31, 2022 and 2021.
The Company had $1.0 million and $1.0 million of cash collateral received and reflected as assets within the Company’s Statements of Admitted Assets, Liabilities, and Capital and Surplus as of December 31, 2022 and 2021, representing 0.018% and 0.017% of total admitted assets excluding Separate Accounts, respectively. The recognized obligation to return the collateral assets was $1.0 million and $1.0 million, representing 0.019% and 0.018% of total liabilities excluding Separate Accounts as of December 31, 2022 and 2021, respectively.
There was no collateral received and reflected as assets within the Company’s Separate Accounts as of December 31, 2022 and 2021.
Repurchase Agreements, Securities Lending Transactions, and Wash Sales
For repurchase agreements, the Company initiates short-term (typically less than 30 days) collateralized borrowings whereby cash is received, and securities 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 are reacquired as interest expense. As of December 31, 2022 and 2021, the Company had borrowed money obligations of $6.2 million and $33.1 million, which represents the cash amount to be paid at the repurchase agreements’ maturities.
The Company posted $8.4 million and $26.9 million (statutory carrying value) of its assets as repurchase agreement collateral, which are classified as “Bonds” as of December 31, 2022 and 2021, respectively.
In connection with the outstanding repurchase agreements, the Company also recognized liabilities of $6.2 million and $33.1 million as of December 31, 2022 and 2021, respectively, which was classified as “Borrowed money”.
The Company is not involved in securities lending transactions.
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, and 2020.
30
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
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 also has an intercompany loan agreement set up with the Company’s parent, PLICO, if needed.
The types of repurchase agreement trades used during 2022 are as follows:
| 1 | 2 | 3 | 4 | |||||
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||
| Bilateral (Yes/No) | Yes | Yes | No | Yes | ||||
| Tri-Party (Yes/No) | No | No | No | No |
The types of repurchase agreement trades used during 2021 are as follows:
| 1 | 2 | 3 | 4 | |||||
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||
| Bilateral (Yes/No) | Yes | Yes | Yes | Yes | ||||
| Tri-Party (Yes/No) | No | No | No | No |
The types of repurchase agreement trades used during 2020 are as follows:
| 1 | 2 | 3 | 4 | |||||
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||
| Bilateral (Yes/No) | No | Yes | No | Yes | ||||
| Tri-Party (Yes/No) | No | No | No | No |
31
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
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 | $ | 33,090 | $ | 10,062 | $ | — | $ | 6,247 | ||||||||
| Ending Balance | ||||||||||||||||
| Open - No Maturity | $ | 10,062 | $ | — | $ | — | $ | 6,247 | ||||||||
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 | $ | 24,905 | $ | 26,154 | $ | 72,999 | $ | 54,822 | ||||||||
| 2 Days to 1 Week | 48,328 | 34,380 | — | — | ||||||||||||
| > 1 Week to 1 Month | 22,067 | — | — | — | ||||||||||||
| Ending Balance | ||||||||||||||||
| Open - No Maturity | $ | — | $ | 14,738 | $ | 63,910 | $ | 33,090 | ||||||||
| 2 Days to 1 Week | — | 36,360 | — | — | ||||||||||||
| > 1 Week to 1 Month | 34,423 | — | — | — | ||||||||||||
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 | $ | 8,386 | |||||||||||
| Fair Value | $ | 38,317 | $ | 9,977 | $ | — | 6,449 | |||||||||
| Ending Balance | ||||||||||||||||
| BACV | XXX | XXX | XXX | $ | 8,386 | |||||||||||
| Fair Value | $ | 9,989 | $ | — | $ | — | 6,449 | |||||||||
32
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
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 | $ | 54,676 | |||||||||||
| Fair Value | $ | 98,865 | $ | 62,079 | $ | 75,397 | 55,470 | |||||||||
| Ending Balance | ||||||||||||||||
| BACV | XXX | XXX | XXX | $ | 26,937 | |||||||||||
| Fair Value | $ | 34,840 | $ | 53,500 | $ | 66,041 | 27,510 | |||||||||
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 $8.4 million and fair value of $6.4 million. 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 $21.9 million and fair value of $22.1 million, and NAIC 2 bonds with a carrying value of $5.0 million and fair value of $5.4 million.
Details of the collateral received - secured borrowing for the year ended December 31, 2022, is as follows:
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
| ($ in thousands) | ||||||||||||||||
| Maximum Amount | ||||||||||||||||
| Cash | $ | 33,090 | $ | 10,062 | $ | — | $ | 6,247 | ||||||||
| Ending Balance | ||||||||||||||||
| Cash | $ | 10,062 | $ | — | $ | — | $ | 6,247 | ||||||||
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 | $ | 95,300 | $ | 60,534 | $ | 72,999 | $ | 54,822 | ||||||||
| Ending Balance | ||||||||||||||||
| Cash | $ | 34,423 | $ | 51,098 | $ | 63,910 | $ | 33,090 | ||||||||
The Company had cash collateral received - secured borrowing of $6.2 million and $33.1 million as of December 31, 2022 and 2021, respectively.
33
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
The allocation of aggregate collateral by remaining contractual maturity as of December 31 is as follows:
| Fair Value | ||||||||
| 2022 | 2021 | |||||||
| ($ in thousands) | ||||||||
| Overnight and Continuous | $ | 6,247 | $ | 33,090 | ||||
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 | $ | 33,090 | $ | 10,062 | $ | — | $ | 6,247 | ||||||||
| Ending Balance | ||||||||||||||||
| Cash | $ | 10,062 | $ | — | $ | — | $ | 6,247 | ||||||||
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 | $ | 95,300 | $ | 60,534 | $ | 72,999 | $ | 54,822 | ||||||||
| Ending Balance | ||||||||||||||||
| Cash | $ | 34,423 | $ | 51,098 | $ | 63,910 | $ | 33,090 | ||||||||
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.
| 5. | 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.
34
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
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. | (1)
Ordinary | (2)
Capital | (3)
(Col 1+2) Total | (4)
Ordinary | (5)
Capital | (6)
(Col 4+5) Total | (7)
Ordinary | (8)
Capital | (9)
(Col 7+8) Total | |||||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||||||
| (a) Gross Deferred Tax Assets | $ | 60,509 | $ | 234 | $ | 60,743 | $ | 68,040 | $ | 233 | $ | 68,273 | $ | (7,531 | ) | $ | 1 | $ | (7,530 | ) | ||||||||||||||||
| (b) Statutory Valuation Allowance Adjustments | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| (c) Adjusted Gross Deferred Tax Assets (1a - 1b) | 60,509 | 234 | 60,743 | 68,040 | 233 | 68,273 | (7,531 | ) | 1 | (7,530 | ) | |||||||||||||||||||||||||
| (d) Deferred Tax Assets Nonadmitted | 37,325 | — | 37,325 | 43,663 | — | 43,663 | (6,338 | ) | — | (6,338 | ) | |||||||||||||||||||||||||
| (e) Subtotal Net Admitted Deferred Tax Asset) (1c-1d) | 23,184 | 234 | 23,418 | 24,377 | 233 | 24,610 | (1,193 | ) | 1 | (1,192 | ) | |||||||||||||||||||||||||
| (f) Deferred Tax Liabilities | 7,458 | — | 7,458 | 7,198 | — | 7,198 | 260 | — | 260 | |||||||||||||||||||||||||||
| (g) Net Admitted Deferred Tax Asset/(Net Deferred Tax Liability) (1e-1f) | $ | 15,726 | $ | 234 | $ | 15,960 | $ | 17,179 | $ | 233 | $ | 17,412 | $ | (1,453 | ) | $ | 1 | $ | (1,452 | ) | ||||||||||||||||
| 12/31/2022 | 12/31/2021 | Change | ||||||||||||||||||||||||||||||||||
| 2. | (1)
Ordinary | (2)
Capital | (3)
(Col 1+2) Total | (4)
Ordinary | (5)
Capital | (6)
(Col 4+5) Total | (7)
Ordinary | (8)
Capital | (9)
(Col 7+8) Total | |||||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||||||
| Admission Calculation Components - SSAP No. 101 | ||||||||||||||||||||||||||||||||||||
| (a) Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carryback | $ | — | $ | 234 | $ | 234 | $ | — | $ | 233 | $ | 233 | $ | — | $ | 1 | $ | 1 | ||||||||||||||||||
| (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) | 15,726 | — | 15,726 | 17,179 | — | 17,179 | (1,453 | ) | — | (1,453 | ) | |||||||||||||||||||||||||
| 1) Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date | 15,726 | — | 15,726 | 17,179 | — | 17,179 | (1,453 | ) | — | (1,453 | ) | |||||||||||||||||||||||||
| 2) Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold | XXX | XXX | 79,026 | XXX | XXX | 73,193 | XXX | XXX | 5,833 | |||||||||||||||||||||||||||
| (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 | 7,458 | — | 7,458 | 7,198 | — | 7,198 | 260 | — | 260 | |||||||||||||||||||||||||||
| (d) Deferred Tax Assets Admitted as the result of Application of SSAP No. 101. Total 2(a) +2(b) +2(c) | $ | 23,184 | $ | 234 | $ | 23,418 | $ | 24,377 | $ | 233 | $ | 24,610 | $ | (1,193 | ) | $ | 1 | $ | (1,192 | ) | ||||||||||||||||
35
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
| 2022 | 2021 | |||||||
| ($ in thousands) | ||||||||
| (a) Ratio Percentage Used To Determine Recovery Period And Threshold Limitation Amount | 896 | % | 1280 | % | ||||
| (b) Amount Of Adjusted Capital And Surplus Used To Determine Recovery Period And Threshold Limitation In 2(b)2 Above. | $ | 566,866 | $ | 521,034 | ||||
| 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 Note 9A1(c) | $ | 60,509 | $ | 234 | $ | 68,040 | $ | 233 | $ | (7,531 | ) | $ | 1 | |||||||||||
| 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 Note 9A1(e) | $ | 23,184 | $ | 234 | $ | 24,377 | $ | 233 | $ | (1,193 | ) | $ | 1 | |||||||||||
| 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.
36
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
Current income taxes incurred consist of the following major components:
| 1. | (1)
2022 | (2)
2021 | (3)
(Col 1-2) Change | |||||||||
| ($ in thousands) | ||||||||||||
| (a) Federal | $ | (25 | ) | $ | 3,531 | $ | (3,556 | ) | ||||
| (b) Foreign | — | — | — | |||||||||
| (c) Subtotal (1a+1b) | (25 | ) | 3,531 | (3,556 | ) | |||||||
| (d) Federal income tax on capital gains | 890 | 19 | 871 | |||||||||
| (e) Utilization of capital loss carryforwards | — | — | — | |||||||||
| (f) Other | — | — | — | |||||||||
| (g) Federal and foreign income taxes incurred (1c+1d+1e+1f) | $ | 865 | $ | 3,550 | $ | (2,685 | ) | |||||
| 1. | (1)
2021 | (2)
2020 | (3)
(Col 1-2) Change | |||||||||
| ($ in thousands) | ||||||||||||
| (a) Federal | $ | 3,531 | $ | 5,889 | $ | (2,358 | ) | |||||
| (b) Foreign | — | — | — | |||||||||
| (c) Subtotal (1a+1b) | 3,531 | 5,889 | (2,358 | ) | ||||||||
| (d) Federal income tax on capital gains | 19 | 1,448 | (1,429 | ) | ||||||||
| (e) Utilization of capital loss carryforwards | — | — | — | |||||||||
| (f) Other | — | — | — | |||||||||
| (g) Federal and foreign income taxes incurred (1c+1d+1e+1f) | $ | 3,550 | $ | 7,337 | $ | (3,787 | ) | |||||
37
PROTECTIVE LIFE AND ANNUITY 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 | $ | — | $ | — | $ | — | ||||||
| (2) Unearned premium reserve | — | — | — | |||||||||
| (3) Policyholder reserves | 27,913 | 30,151 | (2,238 | ) | ||||||||
| (4) Investments | — | — | — | |||||||||
| (5) Deferred acquisition costs | 31,616 | 36,879 | (5,263 | ) | ||||||||
| (6) Policyholder dividends accrual | 205 | 205 | — | |||||||||
| (7) Fixed assets | — | — | — | |||||||||
| (8) Compensation and benefits accrual | — | — | — | |||||||||
| (9) Pension accrual | — | — | — | |||||||||
| (10) Receivables - nonadmitted | 771 | 805 | (34 | ) | ||||||||
| (11) Net operating loss carryforward | — | — | — | |||||||||
| (12) Tax credit carryforward | — | — | — | |||||||||
| (13) Other | 4 | — | 4 | |||||||||
| (99) Subtotal (sum of 2a1 through 2a13) | 60,509 | 68,040 | (7,531 | ) | ||||||||
| (b) Statutory valuation allowance adjustment | — | — | — | |||||||||
| (c) Nonadmitted | 37,325 | 43,663 | (6,338 | ) | ||||||||
| (d) Admitted ordinary deferred tax assets (2a99-2b-2c) | 23,184 | 24,377 | (1,193 | ) | ||||||||
| (e) Capital: | ||||||||||||
| (1) Investments | 234 | 233 | 1 | |||||||||
| (2) Net capital loss carryforward | — | — | — | |||||||||
| (3) Real estate | — | — | — | |||||||||
| (4) Other | — | — | — | |||||||||
| (99) Subtotal (2e1+2e2+2e3+2e4) | 234 | 233 | 1 | |||||||||
| (f) Statutory valuation allowance adjustment | — | — | — | |||||||||
| (g) Nonadmitted | — | — | — | |||||||||
| (h) Admitted capital deferred tax assets (2e99-2f-2g) | 234 | 233 | 1 | |||||||||
| (i) Admitted deferred tax assets (2d+2h) | $ | 23,418 | $ | 24,610 | $ | (1,192 | ) | |||||
38
PROTECTIVE LIFE AND ANNUITY 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 | $ | 5,492 | $ | 5,032 | $ | 460 | ||||||
| (2) Fixed assets | — | — | — | |||||||||
| (3) Deferred and uncollected premium | 1,014 | 618 | 396 | |||||||||
| (4) Policyholder reserves | 752 | 1,331 | (579 | ) | ||||||||
| (5) Other | 200 | 217 | (17 | ) | ||||||||
| (99) Subtotal (3a1+3a2+3a3+3a4+3a5) | 7,458 | 7,198 | 260 | |||||||||
| (b) Capital: | ||||||||||||
| (1) Investments | — | — | — | |||||||||
| (2) Real estate | — | — | — | |||||||||
| (3) Other | — | — | — | |||||||||
| (99) Subtotal (3b1+3b2+3b3) | — | — | — | |||||||||
| (c) Deferred tax liabilities (3a99+3b99) | $ | 7,458 | $ | 7,198 | $ | 260 | ||||||
| 4. Net deferred tax assets/liabilities (2i-3c) | $ | 15,960 | $ | 17,412 | $ | (1,452 | ) | |||||
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):
39
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
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 $1 billion. When applicable, this criterion includes such income of a U.S. corporation's foreign parent. The Company expects to meet this criterion and may be liable for this new tax in the future. The income tax related impacts of the IRA are not material to the Company's financial statements for the period ended December 31, 2022.
The provision for federal and foreign income taxes incurred is different from that which would be obtained by applying the statutory federal income tax rate to income before income taxes. The significant items causing this difference at December 31 are as follows:
| 2022 | Effective Tax Rate (%) | 2021 | Effective Tax Rate (%) | 2020 | Effective Tax Rate (%) | |||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||
| Provision computed at statutory rate | $ | 9,178 | 21.0 | % | $ | 10,192 | 21.0 | % | $ | 9,756 | 21.0 | % | ||||||||||||
| Tax on STAT capital gains (losses) | 802 | 1.8 | 599 | 1.2 | (649 | ) | (1.4 | ) | ||||||||||||||||
| Amortization of IMR | (1,064 | ) | (2.4 | ) | (1,158 | ) | (2.3 | ) | (1,115 | ) | (2.5 | ) | ||||||||||||
| Change in nonadmitted assets | 21 | — | (277 | ) | (0.6 | ) | (459 | ) | (1.0 | ) | ||||||||||||||
| Nondeductible expense | 42 | 0.1 | 5 | — | 7 | — | ||||||||||||||||||
| Tax-exempt income deduction | (6 | ) | — | (6 | ) | — | (16 | ) | — | |||||||||||||||
| Dividends received deduction | (108 | ) | (0.2 | ) | (147 | ) | (0.3 | ) | (105 | ) | (0.2 | ) | ||||||||||||
| Prior year deferred tax true-up | (8 | ) | — | (29 | ) | (0.1 | ) | (189 | ) | (0.4 | ) | |||||||||||||
| Prior year current tax true-up | 17 | — | 30 | 0.1 | 171 | 0.4 | ||||||||||||||||||
| Gain (Loss) on reinsurance | (51 | ) | (0.1 | ) | (56 | ) | (0.1 | ) | (66 | ) | (0.1 | ) | ||||||||||||
| Foreign tax credit | (33 | ) | (0.1 | ) | (25 | ) | (0.1 | ) | (33 | ) | (0.1 | ) | ||||||||||||
| Total | $ | 8,790 | 20.1 | % | $ | 9,128 | 18.8 | % | $ | 7,260 | 15.6 | % | ||||||||||||
| Federal and foreign income taxes incurred | $ | (25 | ) | (0.1 | )% | $ | 3,531 | 7.3 | % | $ | 5,889 | 12.7 | % | |||||||||||
| Tax on capital gains/(losses) | 890 | 2.0 | 19 | — | 1,448 | 3.1 | ||||||||||||||||||
| Change in net deferred income taxes charge/(benefit) | 7,925 | 18.2 | 5,578 | 11.5 | (77 | ) | (0.2 | ) | ||||||||||||||||
| Total statutory income taxes | $ | 8,790 | 20.1 | % | $ | 9,128 | 18.8 | % | $ | 7,260 | 15.6 | % | ||||||||||||
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.
40
PROTECTIVE LIFE AND ANNUITY 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 | $ | — | $ | 1,718 | $ | 1,718 | |||||||
| 2021 | — | 1,920 | 1,920 | ||||||||||
| 2022 | — | 729 | 729 | ||||||||||
| Total | $ | — | $ | 4,367 | $ | 4,367 | |||||||
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 Corporation | |
| Dealer Services Reinsurance, Ltd. | Protective Life Insurance Company | |
| 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. |
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.
| 6. | Information Concerning Parent, Subsidiaries, and Affiliates |
The Company received no capital contributions in 2022 and 2021. In the fourth quarter of 2020, the Company received a cash capital contribution of $100.0 million from its parent, PLICO.
The Company paid no dividends in the three-year period ended December 31, 2022.
41
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
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 from its affiliates of $2.9 million included in “Other assets” and a payable of $1.1 million. As of December 31, 2021, the Company had an intercompany receivable from its affiliates of $18.8 million included in “Other assets” and a payable of $1.2 million.
PLC has contracts with its affiliates under which it supplies 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 $35.5 million, $37.3 million, and $36.6 million during the years ended December 31, 2022, 2021, and 2020, respectively, for these services.
PLICO entered into a guaranty agreement on October 27, 1993, with the Company. PLICO 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 and $2.0 billion at December 31, 2022 and 2021, respectively.
PLICO entered into a guaranty agreement with the Company on December 31, 1995, whereby PLICO guaranteed that the Company will perform all of the obligations of PLICO pursuant to the terms and conditions of an indemnity coinsurance agreement between PLICO and an unaffiliated life insurance company. Total liabilities related to this coinsurance agreement were $5.4 million and $5.5 million at December 31, 2022 and 2021, respectively.
The Company entered into an agreement with PLICO in 2012 in which a loan can be given to or received from PLICO subject to certain limitations as described in the agreement. The Company had no loaned or borrowed amounts as of December 31, 2022 and 2021.
| 7. | Capital and Surplus, Shareholder’s Dividend Restrictions |
Dividends and distributions on preferred and common stock are non-cumulative and are paid as determined by the Board of Directors. Dividends and distributions may be paid without approval of the Insurance Commissioner of the State of Alabama in an amount up 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, subject to earned surplus limitations and reduced by dividends or distributions paid within the preceding twelve months. In the three-year period ended December 31, 2022, the Company paid no dividends on common stock or preferred stock. The Company is eligible to pay dividends of $10.7 million during 2023 without the approval of the Insurance Commissioners of the State of Alabama. The participating preferred stock can be redeemed at the option of the Company at $1,000 per share.
The portion of unassigned funds (surplus) represented or reduced for cumulative unrealized gains and losses was $(2.3) million and $(1.7) million as of December 31, 2022 and 2021, respectively.
The portion of unassigned funds (surplus) reduced for nonadmitted assets was $41.2 million and $47.6 million as of December 31, 2022 and 2021, respectively.
42
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
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 at December 31, 2022 and 2021.
| 8. | Liabilities, Commitments, and Contingencies |
The Company has not entered into any contingent commitments or guarantees. The Company did not recognize any gain contingencies during the three-year period ended December 31, 2022.
The Company paid no claims in the reporting period to settle claims-related extra contractual obligations or bad faith claims stemming from lawsuits during 2022, 2021, and 2020.
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.
43
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
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.
As of December 31, 2022, the Company had outstanding claim reserves from SRUS of $0.3 million, including a recoverable of $0.2 million. In addition, the Company had a statutory reserve credit of $3.4 million at December 31, 2022. As of December 31, 2022, the Company accrued a loss contingency reserve of $1.0 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 $0.5 million, including a $0.5 million recoverable. In addition, the Company had a statutory reserve credit of $4.0 million at December 31, 2021. As of December 31, 2021, the Company accrued a loss contingency reserve of $1.9 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.
44
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
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.
| 9. | 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.
Reinsurance Ceded
The Company had no amounts ceded to affiliates in 2022 and 2021.
The Company has ceded the following to non-affiliated insurers as of and for the years ended December 31:
| 2022 | 2021 | |||||||
| ($ in thousands) | ||||||||
| Life: | ||||||||
| Insurance in-force | $ | 7,104,186 | $ | 6,803,420 | ||||
| Policy reserves ceded | 127,513 | 149,623 | ||||||
| Policy and claim liabilities ceded | 7,589 | 8,407 | ||||||
| Premiums ceded | 27,666 | 26,190 | ||||||
| Accident and health: | ||||||||
| Policy reserves ceded | $ | 248 | $ | 262 | ||||
| Premiums ceded | 2 | — | ||||||
For the year ended December 31, 2020, the Company ceded life insurance premiums of $27.7 million to non-affiliated insurers.
45
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
Reinsurance Assumed
The Company has assumed from non-affiliated insurers as of and for the years ended December 31 as follows:
| 2022 | 2021 | |||||||
| ($ in thousands) | ||||||||
| Life: | ||||||||
| Insurance in-force | $ | 8,352,547 | $ | 8,857,427 | ||||
| Policy reserves assumed | 2,987,697 | 3,229,674 | ||||||
| Policy and claim liabilities assumed | 23,318 | 28,070 | ||||||
| Premiums assumed | 61,270 | 75,151 | ||||||
| Accident and health: | ||||||||
| Policy reserves assumed | $ | 635 | $ | 754 | ||||
| Premiums assumed | 3,293 | 20 | ||||||
For the year ended December 31, 2020, the Company assumed life insurance premiums of $100.6 million and accident and health premiums of $20 thousand from non-affiliated issurers.
None of the reinsurers included as “non-affiliated” in the above tables are owned in excess of 10% or controlled, either directly or indirectly, by the Company or any representative, officer, trustee, or director of the Company. No 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.
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.
The Company had no aggregate reductions to surplus for terminations of reinsurance agreements during 2022, 2021, and 2020. No new agreements were executed nor existing agreements amended during 2022, 2021, and 2020 to include policies or contracts which were in-force, or which had existing reserves established by the Company, as of the effective date of the agreement.
The Company has not written any receivables off as uncollectible during the three-year period ended December 31, 2022. As of December 31, 2022 and 2021, the Company had $2.2 million and $2.2 million, respectively, of nonadmitted reinsurance receivables.
The Company had no commutation of ceded reinsurance during the three-year period ended December 31, 2022.
46
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
The Company had the following reinsurance recoverable balances relating to paid losses:
Amount Recoverable as of December 31, 2022 | % of Total | Rating | ||||||||
| ($ in thousands) | ||||||||||
| RGA Reinsurance Company | $ | 835 | 48.6 | % | A.M. Best Company A+ | |||||
| Security Life of Denver Insurance Company | 373 | 21.7 | Not rated | |||||||
| Swiss Re Life & Health America Inc. | 190 | 11.1 | A.M. Best Company A+ | |||||||
| Scottish Re (U.S.) Inc. | 189 | 11.0 | Not rated | |||||||
| The Lincoln National Life Insurance Company | 122 | 7.1 | A.M. Best Company A | |||||||
| Munich American Reassurance Company | 8 | 0.5 | A.M. Best Company A+ | |||||||
| $ | 1,717 | 100.0 | % | |||||||
Amount Recoverable as of December 31, 2021 | % of Total | Rating | ||||||||
| ($ in thousands) | ||||||||||
| Security Life of Denver Insurance Company | $ | 1,704 | 35.4 | % | Not rated | |||||
| RGA Reinsurance Company | 1,213 | 25.2 | A.M. Best Company A+ | |||||||
| Scottish Re (U.S.) Inc. | 534 | 11.1 | Not rated | |||||||
| The Lincoln National Life Insurance Company | 431 | 9.0 | A.M. Best Company A+ | |||||||
| Swiss Re Life & Health America Inc. | 425 | 8.8 | A.M. Best Company A+ | |||||||
| All other companies | 506 | 10.5 | ||||||||
| $ | 4,813 | 100.0 | % | |||||||
| 10. | 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) | |||||||||||||||||
| Futures | $ | 18,706 | $ | 8,110 | $ | 8,125 | $ | 36,244 | |||||||||
| Options | 163,761 | 228,617 | 149,627 | 215,311 | |||||||||||||
| Totals | $ | 182,467 | $ | 236,727 | $ | 157,752 | $ | 251,555 | |||||||||
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. A description of the Company’s objectives for using derivatives is described more fully in Note 1.
47
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
None of the Company’s derivative instruments qualify for hedge accounting. Therefore, they 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 unrealized gains and losses.
As of December 31, 2022, the Company had posted cash and securities (at fair value) for its derivatives as collateral of $3.8 million and $4.6 million, respectively. Of this amount, $2.5 million and $4.6 million of cash and securities, respectively, related to outstanding futures, and $1.3 million of cash was posted as collateral for outstanding options. As of December 31, 2022, the Company received $1.0 million of cash as collateral related to options.
As of December 31, 2021, the Company had posted cash and securities (at fair value) for its derivatives as collateral of $1.7 million and $5.1 million, respectively. Of this amount, $1.1 million and $5.1 million of cash and securities, respectively, related to outstanding futures, and $0.6 million of cash was posted as collateral for outstanding options. As of December 31, 2021, the Company received $1.0 million of cash as collateral related to options.
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 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 and 2021, the Company had received $1.0 million and $1.0 million, respectively, of cash pledged as collateral. Because exchange-traded futures and options are effected through a regulated exchange and positions are marked to market on a daily basis, the Company has little exposure to credit-related losses in the event of nonperformance by counterparties to such financial instruments.
The current credit exposure of the Company’s derivative contracts is limited to the fair value at the reporting date. Credit risk is managed by entering into transactions with creditworthy counterparties. The Company also attempts to minimize its exposure to credit risk through the use of multiple highly-rated counterparties.
Other Off-Balance Sheet Financial Instruments
The table below presents a summary of the contractual amounts of off-balance sheet financial instruments, other than derivative financial instruments, as of December 31:
| 2022 | 2021 | |||||||
| ($ in thousands) | ||||||||
| Commitments to extend mortgage loans | $ | — | $ | 4,800 | ||||
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.
48
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
| 11. | Participating Policies |
Direct and assumed premiums under individual life participating policies were $10.2 million and 12.2%, $10.8 million and 7.0%, and $11.3 million and 7.7% 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 $1.1 million, $1.1 million, and $1.1 million for the years ended December 31, 2022, 2021, and 2020, respectively. The Company has not allocated any additional income to participating policyholders.
| 12. | Analysis of Annuity Actuarial Reserves and Deposit Liabilities by Withdrawal Characteristics |
Withdrawal characteristics of annuity actuarial reserves and deposit-type contract liabilities as of December 31, 2022 are as follows:
Individual Annuities:
| General Account | Separate Account with Guarantees | Separate Account Non- guaranteed | Total | % of Total | ||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
(1) Subject to discretionary withdrawals | ||||||||||||||||||||
| a. With market value adjustments | $ | 7,315 | $ | 219 | $ | — | $ | 7,534 | 0.3 | % | ||||||||||
| b. At book value less current surrender charge of 5% or more | 270,214 | — | — | 270,214 | 11.1 | |||||||||||||||
| c. At fair value | — | — | 154,452 | 154,452 | 6.3 | |||||||||||||||
| d. Total with market value adjustment or at fair value (total of a through c) | 277,529 | 219 | 154,452 | 432,200 | 17.7 | |||||||||||||||
| e. At book value without adjustment (minimal or no charge or adj.) | 1,969,898 | — | — | 1,969,898 | 80.5 | |||||||||||||||
| (2) Not subject to discretionary withdrawal provision | 45,043 | — | — | 45,043 | 1.8 | |||||||||||||||
| (3) Total (gross: direct + assumed) | 2,292,470 | 219 | 154,452 | 2,447,141 | 100.0 | % | ||||||||||||||
| (4) Reinsurance ceded | 1,630 | — | — | 1,630 | ||||||||||||||||
| (5) Total (net) (3) - (4) | $ | 2,290,840 | $ | 219 | $ | 154,452 | $ | 2,445,511 | ||||||||||||
| (6) Amount included in A(1)b above that will move to A(1)e in the year after the statement date | $ | 179,501 | $ | — | $ | — | $ | 179,501 | ||||||||||||
49
PROTECTIVE LIFE AND ANNUITY 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 | $ | — | $ | 7,288 | $ | — | $ | 7,288 | 28.9 | % | ||||||||||
| 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) | — | 7,288 | — | 7,288 | 28.9 | |||||||||||||||
| e. At book value without adjustment (minimal or no charge or adj.) | — | 49 | — | 49 | 0.2 | |||||||||||||||
| (2) Not subject to discretionary withdrawal provision | 17,874 | — | — | 17,874 | 70.9 | |||||||||||||||
| (3) Total (gross: direct + assumed) | 17,874 | 7,338 | — | 25,211 | 100.0 | % | ||||||||||||||
| (4) Reinsurance ceded | — | — | — | — | ||||||||||||||||
| (5) Total (net) (3) - (4) | $ | 17,874 | $ | 7,338 | $ | — | $ | 25,211 | ||||||||||||
| (6) Amount included in B(1)b above that will move to B(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 | $ | — | $ | — | $ | — | $ | — | — | % | ||||||||||
| 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) | — | — | — | — | — | |||||||||||||||
| e. At book value without adjustment (minimal or no charge or adj.) | 17,743 | — | — | 17,743 | 50.2 | |||||||||||||||
| (2) Not subject to discretionary withdrawal provision | 17,600 | — | — | 17,600 | 49.8 | |||||||||||||||
| (3) Total (gross: direct + assumed) | 35,343 | — | — | 35,343 | 100.0 | % | ||||||||||||||
| (4) Reinsurance ceded | 1,263 | — | — | 1,263 | ||||||||||||||||
| (5) Total (net) (3) - (4) | $ | 34,080 | $ | — | $ | — | $ | 34,080 | ||||||||||||
| (6) Amount included in C(1)b above that will move to C(1)e in the year after the statement date | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Reconciliation of Total Annuity Actuarial Reserves and Deposit Fund Liabilities:
| Life & Accident & Health Annual Statement: | ($ in thousands) | |||
| Exhibit 5, Annuities Section, Total (net) | $ | 2,302,709 | ||
| Exhibit 5, Supplementary Contracts with Life Contingencies Section, Total (net) | 6,005 | |||
| Exhibit 7, Deposit-Type Contracts, Line 14, column 1 | 34,080 | |||
| Subtotal | 2,342,794 | |||
| Separate Accounts Annual Statement: | ||||
| Exhibit 3, Line 0299999, Column 2 | 162,009 | |||
| Subtotal | 162,009 | |||
| Combined total | $ | 2,504,803 | ||
50
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
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 | $ | 7,884 | $ | 306 | $ | — | $ | 8,190 | 0.3 | % | ||||||||||
| b. At book value less current surrender charge of 5% or more | 533,891 | — | — | 533,891 | 19.4 | |||||||||||||||
| c. At fair value | — | — | 173,388 | 173,388 | 6.3 | |||||||||||||||
| d. Total with market value adjustment or at fair value (total of a through c) | 541,775 | 306 | 173,388 | 715,469 | 26.0 | |||||||||||||||
| e. At book value without adjustment (minimal or no charge or adj.) | 1,992,728 | — | — | 1,992,728 | 72.3 | |||||||||||||||
| (2) Not subject to discretionary withdrawal provision | 45,501 | — | — | 45,501 | 1.7 | |||||||||||||||
| (3) Total (gross: direct + assumed) | 2,580,004 | 306 | 173,388 | 2,753,698 | 100.0 | % | ||||||||||||||
| (4) Reinsurance ceded | 1,312 | — | — | 1,312 | ||||||||||||||||
| (5) Total (net) (3) - (4) | $ | 2,578,692 | $ | 306 | $ | 173,388 | $ | 2,752,386 | ||||||||||||
| (6) Amount included in A(1)b above that will move to A(1)e in the year after the statement date | $ | 356,680 | $ | — | $ | — | $ | 356,680 | ||||||||||||
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 | $ | — | $ | 7,243 | $ | — | $ | 7,243 | 27.2 | % | ||||||||||
| 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) | — | 7,243 | — | 7,243 | 27.2 | |||||||||||||||
| e. At book value without adjustment (minimal or no charge or adj.) | — | 292 | — | 292 | 1.1 | |||||||||||||||
| (2) Not subject to discretionary withdrawal provision | 19,048 | — | — | 19,048 | 71.7 | |||||||||||||||
| (3) Total (gross: direct + assumed) | 19,048 | 7,535 | — | 26,583 | 100.0 | % | ||||||||||||||
| (4) Reinsurance ceded | — | — | — | — | ||||||||||||||||
| (5) Total (net) (3) - (4) | $ | 19,048 | $ | 7,535 | $ | — | $ | 26,583 | ||||||||||||
| (6) Amount included in B(1)b above that will move to B(1)e in the year after the statement date | $ | — | $ | — | $ | — | $ | — | ||||||||||||
51
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
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 | $ | — | $ | — | $ | — | $ | — | — | % | ||||||||||
| 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) | — | — | — | — | — | |||||||||||||||
| e. At book value without adjustment (minimal or no charge or adj.) | 13,299 | — | — | 13,299 | 43.3 | |||||||||||||||
| (2) Not subject to discretionary withdrawal provision | 17,386 | — | — | 17,386 | 56.7 | |||||||||||||||
| (3) Total (gross: direct + assumed) | 30,685 | — | — | 30,685 | 100.0 | % | ||||||||||||||
| (4) Reinsurance ceded | 1,391 | — | — | 1,391 | ||||||||||||||||
| (5) Total (net) (3) - (4) | $ | 29,294 | $ | — | $ | — | $ | 29,294 | ||||||||||||
| (6) Amount included in C(1)b above that will move to C(1)e in the year after the statement date | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Reconciliation of Total Annuity Actuarial Reserves and Deposit Fund Liabilities:
| Life & Accident & Health Annual Statement: | ($ in thousands) | |||
| Exhibit 5, Annuities Section, Total (net) | $ | 2,591,662 | ||
| Exhibit 5, Supplementary Contracts with Life Contingencies Section, Total (net) | 6,078 | |||
| Exhibit 7, Deposit-Type Contracts, Line 14, column 1 | 29,294 | |||
| Subtotal | 2,627,034 | |||
| Separate Accounts Annual Statement: | ||||
| Exhibit 3, Line 0299999, Column 2 | 181,229 | |||
| Subtotal | 181,229 | |||
| Combined total | $ | 2,808,263 | ||
52
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
| 13. | 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 | $ | — | $ | 37 | $ | 38 | ||||||
| Universal Life | 1,922,617 | 2,107,636 | 2,230,846 | |||||||||
| Universal Life with Secondary Guarantees | 5,500 | 3,549 | 26,407 | |||||||||
| Other Permanent Cash Value Life Insurance | — | 309,359 | 328,029 | |||||||||
| Variable Universal Life | 2,501 | 3,190 | 3,139 | |||||||||
| Not subject to discretionary withdrawal or no cash values | ||||||||||||
| Term Policies without cash value | XXX | XXX | 168,034 | |||||||||
| Accidental Death Benefits | XXX | XXX | 81 | |||||||||
| Disability - Active Lives | XXX | XXX | 936 | |||||||||
| Disability - Disabled Lives | XXX | XXX | 3,662 | |||||||||
| Miscellaneous Reserves | XXX | XXX | 9,323 | |||||||||
| Total (Gross: direct + assumed) | 1,930,618 | 2,423,771 | 2,770,495 | |||||||||
| Reinsurance Ceded | 1,756 | 1,804 | 124,339 | |||||||||
| Total (net) | $ | 1,928,862 | $ | 2,421,967 | $ | 2,646,156 | ||||||
Reconciliation of Total Life Reserves
| ($ in thousands) | ||||
| Life & Accident & Health Annual Statement: | ||||
| Exhibit 5, Life Insurance Section, Total (net) | $ | 2,632,154 | ||
| Exhibit 5, Accidental Death Benefits Section, Total (net) | 81 | |||
| Exhibit 5, Disability - Active Lives Section, Total (net) | 936 | |||
| Exhibit 5, Disability - Disabled Lives Section, Total (net) | 3,662 | |||
| Exhibit 5, Miscellaneous Reserves Section Total (net) | 9,323 | |||
| Subtotal | 2,646,156 | |||
| Separate Accounts Annual Statement | — | |||
| Combined total | $ | 2,646,156 | ||
53
PROTECTIVE LIFE AND ANNUITY 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 | $ | — | $ | 36 | $ | 37 | ||||||
| Universal Life | 2,031,913 | 2,202,986 | 2,308,952 | |||||||||
| Universal Life with Secondary Guarantees | 5,374 | 3,256 | 24,427 | |||||||||
| Other Permanent Cash Value Life Insurance | — | 293,213 | 311,223 | |||||||||
| Variable Universal Life | 2,373 | 2,373 | 2,328 | |||||||||
| Not subject to discretionary withdrawal or no cash values | ||||||||||||
| Term Policies without cash value | XXX | XXX | 186,574 | |||||||||
| Accidental Death Benefits | XXX | XXX | 54 | |||||||||
| Disability - Active Lives | XXX | XXX | 1,008 | |||||||||
| Disability - Disabled Lives | XXX | XXX | 3,722 | |||||||||
| Miscellaneous Reserves | XXX | XXX | 9,745 | |||||||||
| Total (Gross: direct + assumed) | 2,039,660 | 2,501,864 | 2,848,070 | |||||||||
| Reinsurance Ceded | 1,857 | 1,865 | 146,547 | |||||||||
| Total (net) | $ | 2,037,803 | $ | 2,499,999 | $ | 2,701,523 | ||||||
Reconciliation of Total Life Reserves
| ($ in thousands) | ||||
| Life & Accident & Health Annual Statement: | ||||
| Exhibit 5, Life Insurance Section, Total (net) | $ | 2,686,994 | ||
| Exhibit 5, Accidental Death Benefits Section, Total (net) | 54 | |||
| Exhibit 5, Disability - Active Lives Section, Total (net) | 1,008 | |||
| Exhibit 5, Disability - Disabled Lives Section, Total (net) | 3,722 | |||
| Exhibit 5, Miscellaneous Reserves Section Total (net) | 9,745 | |||
| Subtotal | 2,701,523 | |||
| Separate Accounts Annual Statement | — | |||
| Combined total | $ | 2,701,523 | ||
| 14. | 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.
54
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
Deferred and uncollected life insurance premiums, net of reinsurance, as of December 31 were as follows:
| 2022 | ||||||||
| Type | Gross | Net of Loading | ||||||
| ($ in thousands) | ||||||||
| Ordinary new business | $ | 1,607 | $ | 1,598 | ||||
| Ordinary renewal | 4,731 | 4,228 | ||||||
| Group Life | (936 | ) | (976 | ) | ||||
| Totals | $ | 5,402 | $ | 4,850 | ||||
| 2021 | ||||||||
| Type | Gross | Net of Loading | ||||||
| ($ in thousands) | ||||||||
| Ordinary new business | $ | 647 | $ | 646 | ||||
| Ordinary renewal | 3,701 | 3,212 | ||||||
| Group Life | (852 | ) | (915 | ) | ||||
| Totals | $ | 3,496 | $ | 2,943 | ||||
| 15. | 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 |
Separate Accounts held by the Company are for variable annuity and individual and group market value adjusted annuity 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 15.
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 15.
Some of the variable annuity contracts contain GMDB and GLWB features, which are described in Note 1.
These products are included within the Separate Accounts pursuant to Alabama Code §27-38-1.
55
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
In accordance with the products recorded within the Separate Account, all of the Company’s assets are considered legally insulated from the General Account. As of December 31, 2022 and 2021, the Company’s Separate Account included legally insulated assets of $165.7 million and $179.2 million, respectively. The assets legally insulated from the General Account as of December 31 are attributed to the following products:
| Product | 2022 | 2021 | ||||||
| ($ in thousands) | ||||||||
| Market value adjusted annuities | $ | 10,169 | $ | 3,982 | ||||
| Variable annuities | 155,496 | 175,188 | ||||||
| Total | $ | 165,665 | $ | 179,170 | ||||
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 $4.0 million in 2022, $4.3 million in 2021, $4.3 million in 2020, $4.7 million in 2019, and $5.1 million in 2018.
For the year ended December 31, 2022, $44 thousand 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 $7 thousand, $92 thousand, $6 thousand, and $2 thousand, respectively.
The Company did not have securities lending transactions within the Separate Accounts during either 2022 or 2021.
56
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
Information regarding the Company's Separate Accounts is as follows:
2022
| Indexed | Nonindexed Guarantee Less Than 4% | Nonindexed Guarantee More Than 4% | Nonguaranteed Separate Account | Total | ||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
| (1) Premiums, consideration or deposits for the year ended 12/31/2022 | $ | — | $ | — | $ | — | $ | 19,282 | $ | 19,282 | ||||||||||
| Reserves at 12/31/2022 | ||||||||||||||||||||
| (2) For accounts with assets at: | ||||||||||||||||||||
| (a) Fair value | $ | — | $ | 7,557 | $ | — | $ | 154,452 | $ | 162,009 | ||||||||||
| (b) Amortized cost | — | — | — | — | — | |||||||||||||||
| (c) Total reserves | $ | — | $ | 7,557 | $ | — | $ | 154,452 | $ | 162,009 | ||||||||||
| (3) By withdrawal characteristics: | ||||||||||||||||||||
| (a) Subject to discretionary withdrawal: | ||||||||||||||||||||
| 1. With market value adjustment | $ | — | $ | 7,557 | $ | — | $ | — | $ | 7,557 | ||||||||||
| 2. At book value without market value adjustment and with current surrender charge of 5% or more | — | — | — | — | — | |||||||||||||||
| 3. At fair value | — | — | — | 154,452 | 154,452 | |||||||||||||||
| 4. At book value without market value adjustment and with current surrender charge less than 5% | — | — | — | — | — | |||||||||||||||
| 5. Subtotal | — | 7,557 | — | 154,452 | 162,009 | |||||||||||||||
| (b) Not subject to discretionary withdrawal | — | — | — | — | — | |||||||||||||||
| (c) Total | $ | — | $ | 7,557 | $ | — | $ | 154,452 | $ | 162,009 | ||||||||||
| (4) Reserves for Asset Default Risk in Lieu of AVR | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
57
PROTECTIVE LIFE AND ANNUITY 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 | $ | — | $ | — | $ | — | $ | 19,679 | $ | 19,679 | ||||||||||
| Reserves at 12/31/2021 | ||||||||||||||||||||
| (2) For accounts with assets at: | ||||||||||||||||||||
| (a) Fair value | $ | — | $ | 7,841 | $ | — | $ | 173,388 | $ | 181,229 | ||||||||||
| (b) Amortized cost | — | — | — | — | — | |||||||||||||||
| (c) Total reserves | $ | — | $ | 7,841 | $ | — | $ | 173,388 | $ | 181,229 | ||||||||||
| (3) By withdrawal characteristics: | ||||||||||||||||||||
| (a) Subject to discretionary withdrawal: | ||||||||||||||||||||
| 1. With market value adjustment | $ | — | $ | 7,841 | $ | — | $ | — | $ | 7,841 | ||||||||||
| 2. At book value without market value adjustment and with current surrender charge of 5% or more | — | — | — | — | — | |||||||||||||||
| 3. At fair value | — | — | — | 173,388 | 173,388 | |||||||||||||||
| 4. At book value without market value adjustment and with current surrender charge less than 5% | — | — | — | — | — | |||||||||||||||
| 5. Subtotal | — | 7,841 | — | 173,388 | 181,229 | |||||||||||||||
| (b) Not subject to discretionary withdrawal | — | — | — | — | — | |||||||||||||||
| (c) Total | $ | — | $ | 7,841 | $ | — | $ | 173,388 | $ | 181,229 | ||||||||||
| (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 | $ | — | $ | 2 | $ | — | $ | 707 | $ | 709 | ||||||||||
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 | $ | 19,309 | $ | 19,685 | $ | 715 | ||||||
| Less: Transfers from Separate Accounts | 11,809 | 14,748 | 18,920 | |||||||||
| Net transfers to/(from) Separate Accounts | 7,500 | 4,937 | (18,205 | ) | ||||||||
| Reconciling adjustments: | ||||||||||||
| Transfers assumed under reinsurance agreements | (17,899 | ) | 9,916 | (3,422 | ) | |||||||
| Transfers as reported in the Statements of Operations | $ | (10,399 | ) | $ | 14,853 | $ | (21,627 | ) | ||||
58
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
| 16. | 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 stock | ||||||||||||||||||||
| Industrial and miscellaneous | $ | 3,153 | $ | 2,340 | $ | — | $ | — | $ | 5,493 | ||||||||||
| Total perpetual preferred stock | 3,153 | 2,340 | — | — | 5,493 | |||||||||||||||
| Common stocks | ||||||||||||||||||||
| Industrial and miscellaneous | — | — | 3,112 | — | 3,112 | |||||||||||||||
| Total common stocks | — | — | 3,112 | — | 3,112 | |||||||||||||||
| Separate Accounts | 159,594 | 6,071 | — | — | 165,665 | |||||||||||||||
| Total assets at fair value | $ | 162,747 | $ | 8,411 | $ | 3,112 | $ | — | $ | 174,270 | ||||||||||
59
PROTECTIVE LIFE AND ANNUITY 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 | ||||||||||||||||||||
| Bond | ||||||||||||||||||||
| Corporate bonds | $ | — | $ | 170 | $ | — | $ | — | $ | 170 | ||||||||||
| Total bonds | — | 170 | — | — | 170 | |||||||||||||||
| Common stocks | ||||||||||||||||||||
| Industrial and miscellaneous | 210 | — | 3,204 | — | 3,414 | |||||||||||||||
| Total common stocks | 210 | — | 3,204 | — | 3,414 | |||||||||||||||
| Separate Accounts | 175,253 | 3,917 | — | — | 179,170 | |||||||||||||||
| Total assets at fair value | $ | 175,463 | $ | 4,087 | $ | 3,204 | $ | — | $ | 182,754 | ||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||
| Common stocks - industrial and miscellaneous | $ | 5 | $ | — | $ | — | $ | — | $ | 2 | $ | — | $ | — | $ | — | $ | — | $ | 7 | ||||||||||||||||||||
| Common stocks - FHLB | 3,199 | — | — | — | — | 150 | — | (244 | ) | — | 3,105 | |||||||||||||||||||||||||||||
| Total assets | $ | 3,204 | $ | — | $ | — | $ | — | $ | 2 | $ | 150 | $ | — | $ | (244 | ) | $ | — | $ | 3,112 | |||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||
| Common stocks - industrial and miscellaneous | $ | 1 | $ | — | $ | — | $ | — | $ | 4 | $ | — | $ | — | $ | — | $ | — | $ | 5 | ||||||||||||||||||||
| Common stocks - FHLB | 5,521 | — | — | — | — | 38 | — | (2,360 | ) | — | 3,199 | |||||||||||||||||||||||||||||
| Total assets | $ | 5,522 | $ | — | $ | — | $ | — | $ | 4 | $ | 38 | $ | — | $ | (2,360 | ) | $ | — | $ | 3,204 | |||||||||||||||||||
There were no transfers between levels for the Company’s financial assets and liabilities (other than derivative instruments) measured at fair value during the years ended December 31, 2022, 2021, and 2020.
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.
60
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
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. 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.
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 maturities, 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.
61
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
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.
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.
62
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
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 | ||||||||||||||||||||
| Foreign currency contracts | $ | 34 | $ | — | $ | — | $ | — | $ | 34 | ||||||||||
| Equity contracts | 555 | 3,942 | — | — | 4,497 | |||||||||||||||
| Total derivative assets | $ | 589 | $ | 3,942 | $ | — | $ | — | $ | 4,531 | ||||||||||
| Derivative liabilities | ||||||||||||||||||||
| Foreign currency contracts | $ | 63 | $ | — | $ | — | $ | — | $ | 63 | ||||||||||
| Equity contracts | 199 | 2,574 | — | — | 2,773 | |||||||||||||||
| Total derivative liabilities | $ | 262 | $ | 2,574 | $ | — | $ | — | $ | 2,836 | ||||||||||
| 2021 | ||||||||||||||||||||
| Description | Level 1 | Level 2 | Level 3 | Net Asset Value (NAV) | Total | |||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
| Derivative assets | ||||||||||||||||||||
| Foreign currency contracts | $ | 15 | $ | — | $ | — | $ | — | $ | 15 | ||||||||||
| Equity contracts | 210 | 33,964 | — | — | 34,174 | |||||||||||||||
| Total derivative assets | $ | 225 | $ | 33,964 | $ | — | $ | — | $ | 34,189 | ||||||||||
| Derivative liabilities | ||||||||||||||||||||
| Foreign currency contracts | $ | 57 | $ | — | $ | — | $ | — | $ | 57 | ||||||||||
| Equity contracts | 840 | 30,833 | — | — | 31,673 | |||||||||||||||
| Total derivative liabilities | $ | 897 | $ | 30,833 | $ | — | $ | — | $ | 31,730 | ||||||||||
Derivative instruments are valued using exchange prices or counterparty quotations. Derivative instruments classified as Level 1 generally include futures and options, all of which are traded on active exchange markets. Derivative instruments classified as Level 2 include options which are traded over-the-counter. These Level 2 derivative valuations are determined using independent broker quotations, which are corroborated with observable market inputs. There were no derivative instruments categorized within Level 3 of the fair value hierarchy, and there were no transfers into or out of Level 3 for the years ended December 31, 2022 and 2021.
63
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
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 | $ | 4,548,841 | $ | 5,118,192 | $ | 44,448 | $ | 4,442,535 | $ | 61,858 | ||||||||||
| Common stocks | 3,112 | 3,112 | — | — | 3,112 | |||||||||||||||
| Preferred stocks | 10,289 | 11,564 | 7,949 | 2,340 | — | |||||||||||||||
| Mortgage loans | 288,518 | 325,025 | — | — | 288,518 | |||||||||||||||
| Cash | 2,382 | 2,382 | 2,382 | — | — | |||||||||||||||
| Cash equivalents | 54,322 | 54,322 | 54,322 | — | — | |||||||||||||||
| Contract loans | 49,801 | 49,801 | — | — | 49,801 | |||||||||||||||
| Derivative assets | 4,532 | 4,532 | 590 | 3,942 | — | |||||||||||||||
| Derivative collateral and receivables | 3,758 | 3,758 | 3,758 | — | — | |||||||||||||||
| Other invested assets | 31,765 | 38,780 | — | 31,765 | — | |||||||||||||||
| Separate Account assets | 165,665 | 165,665 | 159,594 | 6,071 | — | |||||||||||||||
| Liabilities | ||||||||||||||||||||
| Deposit-type contracts | 34,202 | 34,080 | — | — | 34,202 | |||||||||||||||
| Derivative liabilities | 2,835 | 2,835 | 261 | 2,574 | — | |||||||||||||||
| Derivative collateral and payables | 1,000 | 1,000 | 1,000 | — | — | |||||||||||||||
| 2021 | ||||||||||||||||||||
| Type of Financial Instrument | Aggregate Fair Value | Carrying Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
| Assets | ||||||||||||||||||||
| Bonds | $ | 5,878,469 | $ | 5,352,637 | $ | 40,570 | $ | 5,774,410 | $ | 63,489 | ||||||||||
| Common stocks | 3,414 | 3,414 | 210 | — | 3,204 | |||||||||||||||
| Preferred stocks | 16,515 | 15,926 | 16,515 | — | — | |||||||||||||||
| Mortgage loans | 349,831 | 343,496 | — | — | 349,831 | |||||||||||||||
| Cash | 25,369 | 25,369 | 25,369 | — | — | |||||||||||||||
| Cash equivalents | 66,247 | 66,247 | 66,247 | — | — | |||||||||||||||
| Short-term investments | 1,164 | 1,126 | — | 1,164 | — | |||||||||||||||
| Contract loans | 50,539 | 50,539 | — | — | 50,539 | |||||||||||||||
| Derivative assets | 34,189 | 34,189 | 225 | 33,964 | — | |||||||||||||||
| Derivative collateral and receivables | 1,985 | 1,985 | 1,985 | — | — | |||||||||||||||
| Other invested assets | 46,659 | 38,831 | — | 46,659 | — | |||||||||||||||
| Separate Account assets | 179,170 | 179,170 | 175,253 | 3,917 | — | |||||||||||||||
| Liabilities | ||||||||||||||||||||
| Deposit-type contracts | 30,050 | 29,294 | — | — | 30,050 | |||||||||||||||
| Derivative liabilities | 31,730 | 31,730 | 897 | 30,833 | — | |||||||||||||||
| Derivative collateral and payables | 1,276 | 1,276 | 1,276 | — | — | |||||||||||||||
The fair values of bonds and preferred stocks reported as “other invested assets” 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.
64
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
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 $3.1 million and $3.2 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. As of December 31, 2022 and 2021, the Company held $7 thousand and $5 thousand of Hercules Inc. publicly traded common stock warrants, consisting of holdings obtained through a tender offer.
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.
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.
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. 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 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.
Deposit-type contracts include annuities certain, supplemental contracts, and dividend accumulations. 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.
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.
65
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
(Statutory Basis)
| 17. | 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%. The credited rate for Liberty Mutual assumed retained asset accounts was 1.0% for 2022, 2021, and 2020.
No fees were charged to direct retained asset account owners and most assumed retained asset account owners during 2022, 2021, and 2020.
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 | 17 | $ | 1,742 | 27 | $ | 2,863 | ||||||||||
| 13 to 24 Months | 18 | 1,340 | 13 | 743 | ||||||||||||
| 25 to 36 Months | 9 | 558 | 17 | 1,152 | ||||||||||||
| 37 to 48 Months | 15 | 919 | 25 | 1,366 | ||||||||||||
| 49 to 60 Months | 23 | 1,057 | 17 | 719 | ||||||||||||
| Over 60 Months | 122 | 4,342 | 108 | 3,384 | ||||||||||||
| Total | 204 | $ | 9,958 | 207 | $ | 10,227 | ||||||||||
66
PROTECTIVE LIFE AND ANNUITY 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 | 207 | $ | 10,227 | 201 | $ | 10,271 | ||||||||||
| Number/Balance of Retained Asset Account Issue/Added During the Year | 28 | 3,492 | 37 | 4,046 | ||||||||||||
| Investment Earnings Credited to Retained Asset Accounts During the Year | XXX | 129 | XXX | 139 | ||||||||||||
| 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 | — | — | — | — | ||||||||||||
| Number/Amount of Retained Asset Accounts Closed/Withdrawn During the Year | 31 | 3,890 | 31 | 4,229 | ||||||||||||
| Number/Balance of Retained Asset Accounts at the End of the Year | 204 | $ | 9,958 | 207 | $ | 10,227 | ||||||||||
| 18. | 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 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 $12.3 million, related to certain investment holdings within the banking sector.
The Company has evaluated the effects of events subsequent to December 31, 2022, and through March 27, 2023 (the date of the issuance of the Statutory statements included herein), and there are no other material subsequent events to report.
67
SUPPLEMENTAL SCHEDULES
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
SCHEDULE I
Summary of Investments-Other than Investments in Related Parties
as of December 31, 2022
| Type of investment | Cost | Fair Value | Amount at which shown in the balance sheet | |||||||||
| ($ in thousands) | ||||||||||||
| Fixed maturities: | ||||||||||||
| Bonds: | ||||||||||||
| United States Government and government agencies and authorities | $ | 701,461 | $ | 614,286 | $ | 701,461 | ||||||
| States, municipalities and political subdivisions | 81,551 | 76,863 | 81,551 | |||||||||
| Foreign governments | 17,162 | 14,690 | 17,162 | |||||||||
| Public utilities | 449,914 | 401,855 | 449,914 | |||||||||
| Convertibles and bonds with warrants attached | 20,379 | 20,325 | 20,379 | |||||||||
| All other corporate bonds | 3,847,725 | 3,420,822 | 3,847,725 | |||||||||
| Redeemable preferred stock | 6,071 | 4,796 | 6,071 | |||||||||
| Total fixed maturities | 5,124,263 | 4,553,637 | 5,124,263 | |||||||||
| Equity securities: | ||||||||||||
| Common stocks: | ||||||||||||
| Banks, trust and insurance companies | 3,105 | 3,105 | 3,105 | |||||||||
| Industrial, miscellaneous and all other | — | 7 | 7 | |||||||||
| Nonredeemable preferred stocks | 6,463 | 5,493 | 5,493 | |||||||||
| Total equity securities | 9,568 | 8,605 | 8,605 | |||||||||
| Mortgage loans on real estate | 325,025 | 288,518 | 325,025 | |||||||||
| Policy loans | 49,801 | 49,801 | 49,801 | |||||||||
| Other long-term investments | 47,070 | 40,055 | 47,070 | |||||||||
| Total investments | $ | 5,555,727 | $ | 4,940,616 | $ | 5,554,764 | ||||||
See accompanying independent auditors’ report.
S-1
PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY
SCHEDULE IV
Reinsurance
as of and for the years ended December 31, 2022, 2021, 2020
| Gross Amount | Ceded to other companies | Assumed from other companies | Net Amount | Percentage of amount assumed to net | ||||||||||||||||
| 2022 | ($ in thousands) | |||||||||||||||||||
| Life insurance in force | $ | 16,110,404 | $ | 7,104,186 | $ | 8,352,547 | $ | 17,358,765 | 48.1 | % | ||||||||||
| Premiums: | ||||||||||||||||||||
| Life insurance | 82,272 | 27,666 | 61,270 | 115,876 | 52.9 | % | ||||||||||||||
| Accident and health insurance | 5,377 | 2 | 3,293 | 8,668 | 38.0 | % | ||||||||||||||
| Total | $ | 87,649 | $ | 27,668 | $ | 64,563 | $ | 124,544 | 51.8 | % | ||||||||||
| 2021 | ($ in thousands) | |||||||||||||||||||
| Life insurance in force | $ | 10,467,839 | $ | 6,803,420 | $ | 8,857,427 | $ | 12,521,846 | 70.7 | % | ||||||||||
| Premiums: | ||||||||||||||||||||
| Life insurance | 132,928 | 26,190 | 75,151 | 181,889 | 41.3 | % | ||||||||||||||
| Accident and health insurance | 6 | — | 20 | 26 | 76.9 | % | ||||||||||||||
| Total | $ | 132,934 | $ | 26,190 | $ | 75,171 | $ | 181,915 | 41.3 | % | ||||||||||
| 2020 | ($ in thousands) | |||||||||||||||||||
| Life insurance in force | $ | 7,979,140 | $ | 6,619,433 | $ | 8,971,770 | $ | 10,331,477 | 86.8 | % | ||||||||||
| Premiums: | ||||||||||||||||||||
| Life insurance | 341,174 | 27,715 | 100,563 | 414,022 | 24.3 | % | ||||||||||||||
| Accident and health insurance | 28 | — | 20 | 48 | 41.7 | % | ||||||||||||||
| Total | $ | 341,202 | $ | 27,715 | $ | 100,583 | $ | 414,070 | 24.3 | % | ||||||||||
See accompanying independent auditors’ report.
S-2