485BPOS 1 aaadvsel485b-66_complete.txt Securities Act Registration No. 333-122109 Investment Act Registration No. 811-07661 -------------------------------------------------------------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-4 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Pre-Effective Amendment No. _ Post-Effective Amendment No. 7 [X] REGISTRATION STATEMENT UNDER THE INVESTMENT ACT OF 1940 Amendment No. 33 [X] ------------------------ AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA (Registrant) ------------------------ AMERITAS LIFE INSURANCE CORP. (Depositor) 5900 "O" Street Lincoln, Nebraska 68510 402-467-1122 ------------------------ Robert G. Lange Vice President, General Counsel & Assistant Secretary Ameritas Life Insurance Corp. 5900 "O" Street Lincoln, Nebraska 68510 Approximate Date of Proposed Public Offering: As soon as practicable after effective date. It is proposed that this filing will become effective: [ ] 60 days after filing pursuant to paragraph a of Rule 485 [ ] on _________ pursuant to paragraph a of Rule 485 [X] on May 1, 2009 pursuant to paragraph b of Rule 485 [ ] immediately upon filing pursuant to paragraph b of Rule 485 If appropriate, check the following box: [ ] This post-effective amendment designates a new effective date for a previously filed post-effective amendment. TITLE OF SECURITIES BEING REGISTERED: SECURITIES OF UNIT INVESTMENT TRUST Ameritas Advisor Select No-Load Variable Annuity PROSPECTUS: May 1, 2009 Ameritas Life Insurance Corp. Logo A UNIFI Company Ameritas Advisor Select No Load Variable Annuity (SM) POLICY FORM 6151 Flexible Premium Deferred Variable Annuity Policy Ameritas Life Insurance Corp. Separate Account LLVA This prospectus describes the Policy, especially its Separate Account. The Policy is designed to help you, the Policy Owner, invest on a tax-deferred basis and meet long-term financial goals. As an annuity, it also provides you with several ways to receive regular income from your investment. An initial minimum payment is required. Further investment is optional. If you agree to perform transfers electronically and accept other electronic and automated processing and delivery of Policy services and disclosure, as they become available, this Policy permits frequent trading subject to certain requirements; otherwise, this Policy includes usual and customary variable annuity restrictions upon frequent trading. You may allocate all or part of your investment among variable investment options (where you have the investment risk, including possible loss of principal), with allocated indirect interests in these non-publicly traded portfolios of ProFunds - VP Series and Access One Trust - VP Series, both advised by ProFunds Advisors LLC.
------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------ CLASSIC PROFUNDS VP ULTRA PROFUNDS VP SECTOR PROFUNDS VP ------------------------------------------------------------------------------------------------------ Bull UltraBull Oil & Gas ------------------------------------------------------------------------------------------------------ Small-Cap UltraMid-Cap Precious Metals ------------------------------------------------------------------------------------------------------ NASDAQ-100 UltraSmall-Cap Real Estate ------------------------------------------------------------------------------------------------------ Mid-Cap Value UltraNASDAQ-100 NON-EQUITY PROFUNDS VP ------------------------------------------------------------------------------------------------------ Small-Cap Value INVERSE PROFUNDS VP U.S. Government Plus ------------------------------------------------------------------------------------------------------ Europe 30 Bear Rising Rates Opportunity ------------------------------------------------------------------------------------------------------ Dow 30 Short Small-Cap ACCESS VP HIGH YIELD FUNDSM ------------------------------------------------------------------------------------------------------ Short NASDAQ-100 PROFUND VP MONEY MARKET ------------------------------------------------------------------------ Short Dow 30 ------------------------------------------------------------------------
A Statement of Additional Information and other information about us and the Policy, with the same date as this prospectus, is on file with the Securities and Exchange Commission ("SEC") and is incorporated into this prospectus by reference. For a free copy, access it on the SEC's Web site (www.sec.gov, select "Search for Company Filings," then "Companies," then type in file number 333-122109), or write or call us. The Table of Contents for the Statement of Additional Information is on the last page of this prospectus. Please Read this Prospectus Carefully and Keep It for Future Reference. It provides information you should consider before investing in a Policy. Prospectuses for the portfolios underlying the Subaccount variable investment options are available without charge from our Service Center. The SEC does not pass upon the accuracy or adequacy of this prospectus, and has not approved or disapproved the Policy. Any representation to the contrary is a criminal offense. NOT FDIC INSURED - MAY LOSE VALUE - NO BANK GUARANTEE Ameritas Life Insurance Corp. (we, us, our) Ameritas Life Insurance Corp., P.O. BOX 82549, Lincoln NE 68501-2549 1-800-255-9678. www.advisorva.com. Contacting Us. To answer your questions or to send additional premium, write or call us at: Ameritas Life Insurance Corp. P.O. Box 82549 Lincoln NE 68501-2549 Or 5900 "O" Street Lincoln, Nebraska 68510 Telephone: 1-800-255-9678 Fax: 1-402-467-7335 Interfund Transfer Request Fax: 1-402-467-7923 e-mail: direct@ameritas.com Express mail packages should be sent to our street address, not our P.O. Box address. The Correct Form of Written Notice "in good order" is important for us to get the information we require to accurately process your Policy elections and changes. Many forms can be found on the on-line services section of our Web site. Or, call us at our toll-free number and we'll send you the form you need and tell you the information we require. Facsimile Written Notice. To provide you with timely service you want, we accept some Written Notice by facsimile. However, by not requiring your original signature, there is a greater risk unauthorized persons can manipulate your signature and make changes on your Policy (including withdrawals) without your knowledge. We are entitled to act upon facsimile signatures that reasonably appear to us to be genuine. Make checks payable to: "Ameritas Life Insurance Corp." TABLE OF CONTENTS Begin on Page DEFINED TERMS...............................................3 POLICY OVERVIEW.............................................4 CHARGES.....................................................5 FINANCIAL INFORMATION.......................................7 Accumulation Unit Values................................7 Financial Statements....................................7 CHARGES EXPLAINED...........................................7 Mortality and Expense Risk Charge.......................7 Transfer Fee............................................7 Tax Charges.............................................7 Fees Charged by the Portfolios..........................7 Waiver of Certain Charges...............................8 INVESTMENT OPTIONS..........................................8 Separate Account Variable Investment Options............8 Transfers..............................................10 Third-Party Services...................................10 Short-Term Trading.....................................10 IMPORTANT POLICY PROVISIONS................................11 Policy Application and Issuance........................11 Your Policy Value......................................12 Telephone Transactions.................................13 Delay of Payments......................................13 Beneficiary............................................13 Minor Owner or Beneficiary.............................13 Policy Changes.........................................14 Policy Termination.....................................14 POLICY DISTRIBUTIONS.......................................14 Withdrawals............................................14 Death Benefits.........................................15 Annuity Income Benefits................................17 FEDERAL INCOME TAX MATTERS.................................19 MISCELLANEOUS..............................................21 About Our Company......................................21 Distribution of the Policies...........................21 Voting Rights..........................................21 Legal Proceedings......................................21 APPENDIX A: Accumulation Unit Values......................A:1 APPENDIX B: Tax-Qualified Plan Disclosures................B:1 IMSA..................................................Last Page Thank You. If You Have Questions,....................Last Page Statement of Additional Information Table of Contents.Last Page Form 6151 NLVA -2- DEFINED TERMS Accumulation Units are an accounting unit of measure used to calculate the Policy value allocated to Subaccounts of the Separate Account. It is similar to a share of a mutual fund. The Policy describes how Accumulation Units are calculated. Annuitant is the person on whose life annuity payments involving life contingencies are based and who receives Policy annuity payments. Annuity Date is the date annuity income payouts are scheduled to begin. This date is identified on the Policy Specifications page of your Policy. You may change this date, as permitted by the Policy and described in this prospectus. Business Day is each day that the New York Stock Exchange is open for trading. Cash Surrender Value is the Policy value less any premium tax charge not previously deducted. Owner, you, your is you -- the person(s) or legal entity who may exercise all rights and privileges under the Policy. If there are joint Owners, the signatures of both Owners are needed to exercise rights under the Policy. Policy Date is the date two Business Days after we receive your application and initial premium. It is the date used to determine Policy Anniversaries and Policy Years. Policy Year/Month/Anniversary is measured from respective anniversary dates of the Policy Date of this Policy. Subaccount is a division within the Separate Account for which Accumulation Units are separately maintained. Each Subaccount corresponds to a single underlying non-publicly traded portfolio issued through a series fund. We, Us, Our, Ameritas, ALIC - Ameritas Life Insurance Corp. Written Notice -- Written notice, signed by you, on a form approved by or acceptable to us, that gives us the information we require and is received at Ameritas Life Insurance Corp., P.O. BOX 82549, Lincoln NE 68501-2549 (or 5900 "O" Street, Lincoln, NE 68510), fax 1-402-467-7335. Call us if you have questions about what form or information is required. This prospectus may only be used to offer the Policy where the Policy may lawfully be sold. The Policy, and certain features described in this prospectus, may not be available in all states. If your Policy is issued as part of a qualified plan under the Internal Revenue Code, refer to any plan documents and disclosures for information about how some of the benefits and rights of the Policy may be affected. Form 6151 NLVA -3- POLICY OVERVIEW The following is intended as a summary. Please read each section of this prospectus for additional detail. The Policy 6151 Ameritas Advisor Select No Load Variable Annuity is a variable annuity savings vehicle offering a variety of investment options to help meet long-term financial goals. Its costs are discussed in this prospectus' CHARGES and CHARGES EXPLAINED sections. You have a short time period to review your Policy and cancel it. The terms of this "right to examine" period vary by state (see the cover of your Policy). You can allocate your premiums among a wide spectrum of investments and transfer money from one underlying investment portfolio to another without tax liability. In the Separate Account variable investment options, you may gain or lose money on your investment. The investment options are described on this prospectus' first page and the INVESTMENT OPTIONS section. The Policy is designed for use by market-timing organizations or other persons or entities that use programmed or frequent transfers among investment options and other lower-cost on-line and automated procedures, except as otherwise stated. More information about short-term trading is in the INVESTMENT OPTIONS - TRANSFERS section. A significant advantage of the Policy is that it provides the ability to accumulate capital on a tax-deferred basis. The purchase of a Policy to fund a tax-qualified retirement account does not provide any additional tax deferred treatment beyond the treatment provided by the tax-qualified retirement plan itself. However, the Policy does provide benefits such as lifetime income payments, family protection through death benefits and guaranteed fees. The Policy is a deferred annuity: it has an accumulation (or deferral) period and an annuity income period. Accumulation Period. During the accumulation period, any earnings that you leave in the Policy are not taxed. During this period you can invest additional money into the Policy, transfer amounts among the investment options, and withdraw some or all of the value of your Policy. Some restrictions may apply to transfers. Withdrawals may be subject to income tax and a penalty tax. Annuity Income Period. The accumulation period ends and the annuity income period begins on a date you select (or the later of the fifth Policy Anniversary or the Policy Anniversary nearest the Annuitant's 85th birthday). During the annuity income period, we will make periodic payments to the Annuitant, unless you specify otherwise. You can select payments that are guaranteed to last for the Annuitant's entire life or for some other period. Some or all of each payment will be taxable. A feature of the Policy distinguishing it from non-annuity investments is its ability to guarantee annuity payments to you for as long as the Annuitant lives or for some other period you select. In addition, if you die before those payments begin, the Policy will pay a death benefit to your beneficiary. POLICY OPERATION & FEATURES Premiums. o Minimum initial premium: $10,000. o Minimum additional premium: $250, or $50 per month if through a regularly billed program. o No additional premiums will be accepted after the earlier of the Annuity Date or the Policy Anniversary nearest your 85th birthday without our approval. Investment Options. o You may transfer among investments, subject to limits. Deductions from Assets. (See CHARGES on next pages.) Withdrawals. o There are no withdrawal charges. o Each withdrawal must be at least $250. Annuity Income. o Several fixed annuity income options are available. Death Benefit. o A death benefit is paid upon the death of the Owner. TAX-QUALIFIED PLANS The Policy can be used to fund a tax-qualified plan such as an IRA or Roth IRA (including for rollovers from tax-sheltered annuities), SEP, or SIMPLE IRA, etc. This Prospectus generally addresses the terms that affect a non-tax-qualified annuity. If your Policy funds a tax-qualified plan, read the Tax Qualified Plan Disclosures in this prospectus' Appendix B to see how they might change your Policy rights and requirements. Contact us if you have questions about the use of the Policy in these or other tax-qualified plans. Form 6151 NLVA -4- CHARGES BASE POLICY CHARGES The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the Policy. The first table describes the fees and expenses that you will pay at the time that you buy the Policy, surrender the Policy, or transfer Policy value between investment options. State premium taxes may also be deducted.
---------------- --------------- Guaranteed Maximum Current Fee Fee ------------------------------------------------------------------------------------- ---------------- --------------- TRANSACTION FEES ------------------------------------------------------------------------------------- ---------------- --------------- SALES LOAD None None ---------------------------------- -------------------------------------------------- ---------------- --------------- WITHDRAWAL CHARGE None None ---------------------------------- -------------------------------------------------- ---------------- --------------- PREMIUM TAXES Levied by some states and municipalities. Rates 0% - 3.5% 0% - 3.5% (upon premium) and timing of the tax vary and may change. ---------------------------------- -------------------------------------------------- ---------------- --------------- TRANSFER FEE (per transfer) ' first 15 transfers per Policy year None None ' over 15 transfers in one Policy Year, we may charge ... $10 None ---------------------------------- -------------------------------------------------- ---------------- --------------- The next table describes the fees and expenses that you will pay periodically during the time that you own the Policy, to equal the annualized charges shown, not including Subaccount portfolio operating fees and expenses. ---------------- --------------- Guaranteed Maximum Current Fee Fee ------------------------------------------------------------------------------------- ---------------- --------------- ANNUAL POLICY FEE None None ---------------------------------------------------------------------------------------------------------------------- SEPARATE ACCOUNT ANNUAL EXPENSES Deducted daily from assets allocated to the Separate Account to equal the annual % shown.) ------------------------------------------------------------------------------------- ---------------- --------------- MORTALITY & EXPENSE RISK CHARGE 0.90% 0.90% ------------------------------------------------------------------------------------- ---------------- ---------------
PORTFOLIO COMPANY OPERATING EXPENSES (as of December 31, 2008) The next table shows the minimum and maximum total operating expenses charged by the portfolio companies, before and after any contractual waivers or reductions, that you may pay periodically during the time that you own the contract. More detail concerning each portfolio company's fees and expenses is contained in the prospectus for each portfolio company.
---------------------------------------------------------------------------- -------------------- -------------------- TOTAL ANNUAL PORTFOLIO COMPANY OPERATING EXPENSES Expenses that are deducted from portfolio company assets, including Minimum Maximum management fees, distribution and/or service (12b-1) fees, and other expenses ------------------------------------------------------------------------------ ------------------- ------------------ Before any Waivers and Reductions 1.43% (1) 1.97% (2) ------------------------------------------------------------------------------ ------------------- ------------------ After any Waivers and Reductions (explained in the footnotes to these tables) 1.35% (3) 1.68% (4) ---------------------------------------------------------------------------------------------------------------------
(1) Non-Equity ProFunds VP US Government Plus (2) Inverse ProFunds VP Short Dow 30 (3) ProFund VP Money Market (4) See complete chart below for list of portfolios with Total Expenses of 1.68% Form 6151 NLVA -5- ---------------------------------------------------------------------------------------------------------------------- Acquired Total Expenses Subaccount's underlying Fund Fees Total Waivers after Waivers Portfolio Name Management 12b-1 Other and Portfolio and and Reductions, Fees Fees* Fees Expenses Fees Reductions if any ---------------------------------------------------------------------------------------------------------------------- CLASSIC PROFUNDS VP ---------------------------------------------------------------------------------------------------------------------- Bull 0.75% 0.25% 0.71%(1) - 1.71%(2) 0.03% 1.68%(3) ---------------------------------------------------------------------------------------------------------------------- Small Cap 0.75% 0.25% 0.63%(1) - 1.63%(2) - 1.63%(3) ---------------------------------------------------------------------------------------------------------------------- NASDAQ-100 0.75% 0.25% 0.74%(1) - 1.74%(1) 0.06% 1.68%(3) ---------------------------------------------------------------------------------------------------------------------- Mid-Cap Value 0.75% 0.25% 0.77%(1) - 1.77%(2) 0.09% 1.68%(3) ---------------------------------------------------------------------------------------------------------------------- Small-Cap Value 0.75% 0.25% 0.91%(1) - 1.91%(2) 0.23% 1.68%(3) ---------------------------------------------------------------------------------------------------------------------- Europe 30 0.75% 0.25% 0.68%(1) - 1.68%(2) - 1.68%(3) ---------------------------------------------------------------------------------------------------------------------- Dow 30 0.75% 0.25% 0.55%(1) - 1.55%(2) - 1.55%(3) ---------------------------------------------------------------------------------------------------------------------- ULTRA PROFUNDS VP ---------------------------------------------------------------------------------------------------------------------- UltraBull 0.75% 0.25% 0.79%(1) - 1.79%(2) 0.11% 1.68%(3) ---------------------------------------------------------------------------------------------------------------------- UltraMid-Cap 0.75% 0.25% 0.75%(1) - 1.75%(2) 0.07% 1.68%(3) ---------------------------------------------------------------------------------------------------------------------- UltraSmall-Cap 0.75% 0.25% 0.81%(1) - 1.81%(2) 0.13% 1.68%(3) ---------------------------------------------------------------------------------------------------------------------- UltraNASDAQ-100 0.75% 0.25% 0.75%(1) - 1.75%(2) 0.07% 1.68%(3) ---------------------------------------------------------------------------------------------------------------------- INVERSE PROFUNDS VP ---------------------------------------------------------------------------------------------------------------------- Bear 0.75% 0.25% 0.70%(1) - 1.70%(2) 0.02% 1.68%(3) ---------------------------------------------------------------------------------------------------------------------- Short Small-Cap 0.75% 0.25% 0.69%(1) - 1.69%(2) 0.01% 1.68%(3) ---------------------------------------------------------------------------------------------------------------------- Short NASDAQ-100 0.75% 0.25% 0.74%(1) - 1.74%(2) 0.06% 1.68%(3) ---------------------------------------------------------------------------------------------------------------------- Short Dow 30 0.75% 0.25% 0.97%(1) - 1.97%(2) 0.29% 1.68%(3) ---------------------------------------------------------------------------------------------------------------------- SECTOR PROFUNDS VP ---------------------------------------------------------------------------------------------------------------------- Oil & Gas 0.75% 0.25% 0.71%(1) - 1.71%(2) 0.03% 1.68%(3) ---------------------------------------------------------------------------------------------------------------------- Precious Metals 0.75% 0.25% 0.69%(1) - 1.69%(2) 0.01% 1.68%(3) ---------------------------------------------------------------------------------------------------------------------- Real Estate 0.75% 0.25% 0.77%(1) - 1.77%(2) 0.09% 1.68%(3) ---------------------------------------------------------------------------------------------------------------------- NON-EQUITY PROFUNDS VP ---------------------------------------------------------------------------------------------------------------------- US Government Plus 0.50% 0.25% 0.68%(1) - 1.43%(2) 0.05% 1.38%(3) ---------------------------------------------------------------------------------------------------------------------- Rising Rates Opportunity 0.75% 0.25% 0.66%(1) - 1.66%(2) - 1.66%(3) ---------------------------------------------------------------------------------------------------------------------- ACCESS VP HIGH YIELD FUND 0.75% 0.25% 0.75%(1) - 1.75%(2) 0.07% 1.68%(3) ---------------------------------------------------------------------------------------------------------------------- PROFUND VP MONEY MARKET 0.75% 0.25% 0.47%(1) - 1.47%(2) 0.12% 1.35%(3) ----------------------------------------------------------------------------------------------------------------------
ProFunds (1) Other Fees and Total Portfolio Fees, which are as of December 31, 2008, have been restated to reflect subsequent changes in the contractual amounts of fees paid for management services. ProFunds (2) ProFund Advisors LLC has contractually agreed to waive Investment Advisory and Management Services Fees and to reimburse other expenses to the extent Total Portfolio Fees, as a percentage of average daily net assets, exceed 1.68% (1.38% for ProFund VP U.S. Government Plus and 1.35% for ProFund VP Money Market) through April 30, 2010. After such date, any of the expense limitations may be terminated or revised. Amounts waived or reimbursed in a particular fiscal year may be repaid to ProFund Advisors LLC within 3 years of the waiver or reimbursement to the extent that recoupment will not cause the Portfolio's expenses to exceed any expense limitation in place at that time. A waiver or reimbursement lowers the expense ratio and increases overall returns to investors. ProFunds (3) Reflects fee waivers, reimbursement of expenses, and expense reductions, if any. * 12b-1 fees are paid to us by the portfolio pursuant to Rule 12b-1 under the Investment Company Act of 1940, which allows investment companies to pay fees out of portfolio assets to those who sell and distribute portfolio shares. We provide shareholder support and marketing services for some Subaccount portfolio investment advisers in return for annual compensation of between 0.05% and 0.25% of Subaccount assets. This compensation is reflected in the Portfolio expenses shown above. EXAMPLES OF EXPENSES The Examples below are intended to help you compare the cost of investing in the Policy with the cost of investing in other variable annuity policies. These costs include Policy owner transaction expenses, contract charges, separate account annual expenses, and Subaccount underlying portfolio fees and expenses. The Examples assume that you invest $10,000 in the Policy for the time periods indicated. The Examples also assume that your investment has a 5% return each year and assume the underlying portfolio and Policy fees and expenses indicated. The example amounts are illustrative only, and should not be considered a representation of past or future expenses. Your actual expenses may be higher or lower than those shown in the chart.
------------------------------------------------------------------------------- The Policy's expenses are the same whether the Policy is surrendered, annuitized, or continues at the end of the time period shown. -------------------------------------------------------------------------------------------------------------- EXAMPLE 1 Yr 3 Yr 5 Yr 10 Yr -------------------------------------------------------------------------------------------------------------- Maximum Policy Expenses (1) $290 $889 $1,513 $3,195 -------------------------------------------------------------------------------------------------------------- Minimum Policy Expenses (2) $228 $703 $1,205 $2,585 --------------------------------------------------------------------------------------------------------------
(1) Maximum Policy Expenses. This example assumes maximum charges of 0.90% for Separate Account annual expenses plus the maximum fees and expenses before any waivers or reductions of any of the portfolio companies (1.97%). (2) Minimum Policy Expenses. This example assumes current charges of 0.90% for Separate Account annual expenses plus the minimum fees and expenses after any waivers or reductions of any of the portfolio companies (1.35%). Form 6151 NLVA -6- FINANCIAL INFORMATION ACCUMULATION UNIT VALUES We provide Accumulation Unit value history for each of the Separate Account variable investment options in Appendix A. FINANCIAL STATEMENTS Financial statements of the Subaccounts of the Separate Account and our company are included in the Statement of Additional Information; to learn how to get a copy, see the front or back page of this prospectus. CHARGES EXPLAINED The Policy has no sales load, withdrawal charges, or separate charge for administrative expenses including no Policy fee. MORTALITY AND EXPENSE RISK CHARGE We impose a daily fee to compensate us for the mortality and expense risks we have under the Policy. This fee is reflected in the Accumulation Unit values for each Subaccount. Our mortality risk arises from our obligation to make annuity payments and to pay death benefits prior to the Annuity Date. The mortality risk we assume is that Annuitants will live longer than we project, so our cost in making annuity payments will be higher than projected. However, an Annuitant's own longevity, or improvement in general life expectancy, will not affect the periodic annuity payments we pay under your Policy. Another mortality risk we assume is that at your death the death benefit we pay will be greater than the Policy value. Our expense risk is that our costs to administer your Policy will exceed the amount we collect through administrative charges. If the mortality and expense risk charge does not cover our costs, we bear the loss, not you. If the charge exceeds our costs, the excess is our profit. TRANSFER FEE The first 15 transfers per Policy Year from Subaccounts are free. A transfer fee may be imposed for any transfer in excess of 15 per Policy Year. The transfer fee is deducted pro rata from each Subaccount in which the Owner is invested. TAX CHARGES Some states and municipalities levy a tax on annuities, currently ranging from 0% to 3.5% of your premiums. These tax rates, and the timing of the tax, vary and may change. Presently, we deduct the charge for the tax in those states with a tax either (a) from premiums as they are received, or (b) upon applying proceeds to an annuity income option. No charges are currently made for taxes other than premium taxes. We reserve the right to levy charges in the future for taxes or other costs resulting from taxes that we determine are properly attributable to the Separate Account. FEES CHARGED BY THE PORTFOLIOS Each Subaccount's underlying portfolio has investment advisory fees and expenses. They are set forth in this prospectus' CHARGES section and described in more detail in each fund's prospectus. A portfolio's fees and expenses are not deducted from your Policy value. Instead, they are reflected in the daily value of portfolio shares which, in turn, will affect the daily Accumulation Unit value of the Subaccounts. These fees and expenses help to pay the portfolio's investment advisory and operating expenses. Form 6151 NLVA -7- WAIVER OF CERTAIN CHARGES When the Policy is sold in a manner that results in savings of sales or administrative expenses, we reserve the right to waive all or part of any fee we charge under the Policy (excluding fees charged by the portfolios). Factors we consider include one or more of the following: size and type of group to whom the Policy is issued; amount of expected premiums; relationship with us (employee of us or an affiliated company, receiving distributions or making transfers from other policies we or one of our affiliates issue or transferring amounts held under qualified retirement plans we or one of our affiliates sponsor); type and frequency of administrative and sales services provided; or level of annual maintenance fee. Any fee waiver will not be discriminatory and will be done according to our rules in effect at the time the Policy is issued. We reserve the right to change these rules. The right to waive any charges may be subject to state approval. INVESTMENT OPTIONS The Policy allows you to choose from a wide array of investment options - each chosen for its potential to meet specific investment objectives. You may allocate your premiums among the Separate Account variable investment options. Allocations must be in whole percentages and total 100%. The variable investment options, which invest in underlying portfolios, are listed and described below. The value of your Policy will go up or down based on the investment performance of the variable investment options you choose. Please consider carefully, and on a continuing basis, which investment options best suit your long-term investment objectives and risk tolerance. SEPARATE ACCOUNT VARIABLE INVESTMENT OPTIONS The Separate Account provides you with variable investment options in the form of underlying portfolio investments. Each underlying portfolio is an open-end investment management company. When you allocate investments to an underlying portfolio, those investments are placed in a Subaccount of the Separate Account corresponding to that portfolio, and the Subaccount in turn invests in the portfolio. The Policy value of your Policy depends directly on the investment performance of the portfolios that you select. The Separate Account is registered with the SEC as a unit investment trust. However, the SEC does not supervise the management or the investment practices or policies of the Separate Account or Ameritas. The Separate Account was established as a separate investment account of Ameritas under Nebraska law on October 26, 1995. Under Nebraska law, we own the Separate Account assets, but they are held separately from our other assets and are not charged with any liability or credited with any gain of business unrelated to the Separate Account. Any and all distributions made by the underlying portfolios, with respect to the shares held by the Separate Account, will be reinvested in additional shares at net asset value. We are responsible to you for meeting the obligations of the Policy, but we do not guarantee the investment performance of any of the variable investment options' underlying portfolios. We do not make any representations about their future performance. The underlying portfolios in the Separate Account are NOT publicly traded mutual funds, and are NOT the same as other publicly traded mutual funds with very similar names. They are only available as separate account investment options in life insurance or variable annuity policies issued by insurance companies, or through participation in certain qualified pension or retirement plans. Even if the investment options and policies of some underlying portfolios available under the Policy may be very similar to the investment objectives and policies of publicly traded mutual funds that may be managed by the same investment adviser, the investment performance and results of the portfolios available under the Policy may vary significantly from the investment results of such other publicly traded mutual funds. You should read the prospectuses for the underlying portfolios together with this prospectus for more information. You bear the risk that the variable investment options you select may fail to meet their objectives, that they could go down in value, and that you could lose principal. Each Subaccount's underlying portfolio operates as a separate investment fund, and the income or losses of one generally have no effect on the investment performance of any other. Complete descriptions of each variable investment option's investment objectives and restrictions and other material information related to an investment in the variable investment option are contained in the prospectuses for each of the series funds which accompany this prospectus. The Separate Account Subaccount underlying portfolios listed below are designed primarily as investments for Form 6151 NLVA -8- variable annuity and variable life insurance policies issued by insurance companies. They are not publicly traded mutual funds available for direct purchase by you. There is no assurance the investment objectives will be met. This information is just a summary for each underlying portfolio. You should read the series fund prospectus for an underlying portfolio accompanying this prospectus for more information about that portfolio, including detailed information about the portfolio's fees and expenses, investment strategy and investment objective, and potential risks such as those related to mixed and shared funding for portfolios that are also offered through variable life insurance policies and qualified pension and retirement plans. To get a copy of any portfolio prospectus, contact your representative or us as shown on the Table of Contents page or the last page of this prospectus.
-------------------------------------------------------------------------------------------------------------------- FUND NAME INVESTMENT ADVISER Portfolio Name Portfolio Type / Summary of Investment Strategy -------------------------------------------------------------------------------------------------------------------- ProFunds(R) ProFunds Advisors LLC -------------------------------------------------------------------------------------------------------------------- Classic ProFunds VP Daily, before fees and expenses, match stated index: -------------------------------------------------------------------------------------------------------------------- Bull S&P 500 Index(R) -------------------------------------------------------------------------------------------------------------------- Small Cap Russell 2000 Index(R) -------------------------------------------------------------------------------------------------------------------- NASDAQ-100 NASDAQ-100 Index(R) -------------------------------------------------------------------------------------------------------------------- Mid-Cap Value S&P MidCap 400/Citigroup Value Index -------------------------------------------------------------------------------------------------------------------- Small-Cap Value S&P SmallCap 600/Citigroup Value Index -------------------------------------------------------------------------------------------------------------------- Europe 30 ProFunds Europe 30 Index -------------------------------------------------------------------------------------------------------------------- Dow 30 Dow Jones Industrial Average -------------------------------------------------------------------------------------------------------------------- Ultra ProFunds VP Daily, before fees and expenses, double stated index: -------------------------------------------------------------------------------------------------------------------- UltraBull S&P 500 Index(R) -------------------------------------------------------------------------------------------------------------------- UltraMid-Cap S&P MidCap 400 Index -------------------------------------------------------------------------------------------------------------------- UltraSmall-Cap Russell 2000 Index -------------------------------------------------------------------------------------------------------------------- UltraNASDAQ-100 NASDAQ-100 Index(R) -------------------------------------------------------------------------------------------------------------------- Inverse ProFunds VP Daily, before fees and expenses, match inverse of stated index: -------------------------------------------------------------------------------------------------------------------- Bear S&P 500 Index(R) -------------------------------------------------------------------------------------------------------------------- Short Small-Cap Russell 2000 Index -------------------------------------------------------------------------------------------------------------------- Short NASDAQ-100 NASDAQ-100 Index(R) -------------------------------------------------------------------------------------------------------------------- Short Dow 30 Dow Jones Industrial Average -------------------------------------------------------------------------------------------------------------------- Sector ProFunds VP Daily, before fees and expenses, match stated index: -------------------------------------------------------------------------------------------------------------------- Oil & Gas Dow Jones U.S. Oil & Gas Index -------------------------------------------------------------------------------------------------------------------- Precious Metals Dow Jones Precious Metals Index -------------------------------------------------------------------------------------------------------------------- Real Estate Dow Jones U.S. Real Estate Index -------------------------------------------------------------------------------------------------------------------- Non-Equity ProFunds VP Daily, before fees and expenses, correspond to 125% of bond performance. -------------------------------------------------------------------------------------------------------------------- US Government Plus Most recently issued 30-year U.S. Treasury Bond -------------------------------------------------------------------------------------------------------------------- Rising Rates Opportunity Inverse of most recently issued 30-year U.S. Treasury Bond -------------------------------------------------------------------------------------------------------------------- Access VP High Yield Fund SM Daily investment results, before fees and expenses, that correspond to total return of high yield market. -------------------------------------------------------------------------------------------------------------------- ProFund VP Money Market Money market. --------------------------------------------------------------------------------------------------------------------
"S&P 500 Index," "S&P MidCap 400 Index," and "S&P SmallCap 600 Index" are trademarks of The McGraw-Hill Companies, Incl. and Barra, Inc. and have been licensed for use by ProFunds. "Dow Jones" and the name of each Dow Jones sector index are trademarks of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by ProFunds VPs. "NASDAQ-100(R) Index" is a trademark of The NASDAQ Stock Market, Inc. "Russell 2000(R) Index" is a trademark of the Frank Russell Company. The ProFunds VP portfolios and the Policy are not sponsored, endorsed, sold or promoted by these organizations and the organizations make no representations regarding the advisability of investing in ProFunds VP or purchasing the Policy. o Adding, Deleting, or Substituting Variable Investment Options We do not control the Subaccounts' underlying portfolios, so we cannot guarantee that any of the portfolios will always be available. We retain the right to change the investments of the Separate Account, and to eliminate the shares of any Subaccount's underlying portfolio and substitute shares of another series fund portfolio if the shares of an underlying portfolio are no longer available for investment or if, in our judgment, investment in the portfolio would be inappropriate in view of the purposes of the Separate Account. We may add new Separate Account underlying portfolios or eliminate existing underlying portfolios, when, in our sole discretion, conditions warrant a change. In all of these situations, we will receive any necessary SEC and state approval before making any such change. Our Separate Account may be (i) operated as an investment management company or any other form permitted by law, (ii) deregistered with the SEC if registration is no longer required, or (iii) combined with one or Form 6151 NLVA -9- more other separate accounts. To the extent permitted by law, we also may transfer assets of the Separate Account to other accounts. Where permitted by applicable law, we reserve the right to remove, combine or add Subaccounts. Subaccounts may be closed to new or subsequent premium payments, transfers or premium allocations. We will receive any necessary SEC and state approval before making any of these changes. We will notify you of any changes to the variable investment options. TRANSFERS Prior to the Annuity Date, you may transfer Policy value from one Subaccount to another, subject to these rules: Transfer Rules: o A transfer is considered any single request to move assets from one or more Subaccounts to one or more of the other Subaccounts. o We must receive notice of the transfer by either Written Notice, an authorized telephone transaction, or by Internet when available. For same day processing, transfer requests by facsimile, telephone, or Internet must be sent to us by 3:20 p.m. Eastern Time for the Access VP High Yield Fund SM and Sector ProFunds VP portfolios, and 3:45 p.m. Eastern Time for all other portfolios. Requests received later are processed on the next trading day. Fax requests must be sent to our trade desk at 402-467-7923. If requests are faxed elsewhere, we will process them as of the day they are received by our trading unit. o The transferred amount must be at least $250, or the entire Subaccount if it is less. If the value remaining after a transfer will be less than $250 in a Subaccount, we will include that amount as part of the transfer. o The first 15 transfers each Policy Year are free. Thereafter, transfers may result in a $10 charge for each transfer. This fee is deducted on a pro-rata basis from balances in all Subaccounts; it is not subtracted from the amount of the transfer. o If the Policy value in any Subaccount falls below $250, we may transfer the remaining balance, without charge, to the ProFund VP Money Market Subaccount. o We reserve the right to limit transfers, or to modify transfer privileges, and we reserve the right to change the transfer rules at any time, subject to Policy restrictions. o In the event you authorize telephone or Internet transfers, we are not liable for telephone or Internet instructions that we in good faith believe you authorized. We will employ reasonable procedures to confirm that instructions are genuine. THIRD-PARTY SERVICES Where permitted and subject to our rules, we may accept your authorization to have a third party exercise transfers or investment allocations on your behalf. Third-party transfers and allocations are subject to the same rules as all other transfers and allocations. You can make this election by sending us Written Notice. Please note that any person or entity you authorize to make transfers or allocations on your behalf, including any investment advisory, asset allocation, money management or timing service, does so independently from any agency relationship they may have with us for the sale of the Policies. They are accountable to you alone for such transfers or allocations. We are not responsible for such transfers or allocations on your behalf, or recommendations to you, by such third-party services. You should be aware that fees charged by such third parties for their service are separate from and in addition to fees paid under the Policy. SHORT-TERM TRADING Unlike most variable annuity policies, the Policy can serve as a vehicle for short-term trading and includes investment options designed for use by investors and their investment advisors who use frequent trading. Subaccount underlying portfolios' prospectuses describe each portfolio's position regarding short-term trading. To engage in short-term trading, you must elect (on a form we will provide to you) to perform trades using only an electronic 'on-line' process we make available, and must consent to receive disclosures (trade confirmations, annual statements, updated disclosure information, etc.) electronically. We reserve the right, however, to deliver documents to you on paper at any time. We may charge a fee for producing paper copies of documents at your request and which have been previously delivered to you electronically. (There is no charge for paper notices if you do not elect to do on-line trading or have not otherwise elected to receive electronic disclosure, or if you revoke in writing your on-line trading privileges or receipt of electronic disclosure.) You may also revoke your consent to further delivery of electronic documents at any time by Written Notice to us. Form 6151 NLVA -10- If you do not elect the requirements for short-term trading outlined above, we reserve the right to reject or restrict, in our sole discretion, transfers initiated by a market timing organization or individual or other party authorized to give transfer instructions. Frequent trading, programmed transfers, or transfers that are large in relation to the total assets of a Subaccount's underlying portfolio can disrupt management of the Subaccount and underlying portfolio and raise expenses. This in turn can hurt performance of an affected Subaccount and therefore hurt your Policy's performance. We further reserve the right to impose restrictions on transfers that we determine, in our sole discretion, will disadvantage or potentially hurt the rights or interests of other Policy Owners. Restrictions may include changing, suspending or terminating telephone, on-line and facsimile transfer privileges. We will also enforce any Subaccount underlying portfolio manager's own restrictions imposed upon transfers considered by the manager to be disruptive. Our disruptive trading procedures may vary from Subaccount to Subaccount, and may also vary due to differences in operational systems and contract provisions. Any Subaccount restrictions will be uniformly applied. We will notify affected Policy Owners before we limit transfers, modify transfer procedures or refuse to complete a transfer. IMPORTANT POLICY PROVISIONS Many key rights and benefits under the Policy are summarized in this prospectus. Your Policy contains the complete terms of your agreement with Ameritas. You may obtain a copy of the Policy from us. The Policy remains in force until surrendered for its Cash Surrender Value, or until all proceeds have been paid under an annuity income option or as a death benefit. POLICY APPLICATION AND ISSUANCE To purchase a Policy, you must submit an application and a minimum initial premium. A Policy usually will be issued only if you and the Annuitant are age 0 through 85, rounded to the nearest birthday. We reserve the right to reject any application or premium for any reason. Replacing an existing annuity policy is not always your best choice. Evaluate any replacement carefully. If your application is in good order upon receipt, we will credit your initial premium (less premium tax, if applicable) to the Policy value in accordance with your allocation instructions within two Business Days after the later of the date we receive your application or the date we receive your premium. If the application is incomplete or otherwise not in good order, we will contact you within five Business Days to explain the delay; at that time we will refund your initial premium unless you consent to our retaining it to apply it to your Policy once all Policy issuance requirements are met. No Policy will have a Policy Date that is on or after the 29th day of a month. (This does not affect how premium is credited; see the paragraph above.) o Application in Good Order All application questions must be answered, but particularly note these requirements: o The Owner's and the Annuitant's full name, Social Security number, and date of birth must be included. o Your premium allocations must be completed in whole percentages, and total 100%. o Initial premium must meet minimum premium requirements. o Your signature must be on the application. o Identify the type of plan, whether it is nonqualified or, if it is qualified, state the type of qualified plan. o City, state and date application was signed must be completed. o If you have one, please give us your e-mail address to facilitate receiving updated Policy information by electronic delivery. o There may be forms in addition to the application required by law or regulation, especially when a qualified plan or replacement is involved. Form 6151 NLVA -11- o Premium Requirements Your premium checks should be made payable to "Ameritas Life Insurance Corp." We may postpone crediting any payment made by check to your Policy value until the check has been honored by your bank. Payment by certified check, banker's draft, or cashier's check will be promptly applied. Under our electronic fund transfer program, you may select a monthly payment schedule for us to automatically deduct premiums from your bank account or other sources. We must consent to any premium that would result in more than $5 million total premium held with us for the same Annuitant or Owner ($1 million for policies issued prior to June 1, 2006). Initial Premium o The only premium required. All others are optional. o Must be at least $10,000. We have the right to change these premium requirements, and to accept a smaller initial premium if payments are established as part of a regularly billed program (electronic funds transfer, payroll deduction, etc.) or as part of a tax-qualified plan. Additional Premiums o Must be at least $250; $50 if payments are established as electronic funds transfer. We have the right to change these premium requirements. o Will not be accepted, without our approval, on or after the earlier of (i) the Policy Anniversary nearest your 85th birthday or (ii) the Annuity Date. Allocating Your Premiums You may allocate your premiums among the variable investment options. Initial allocations in your Policy application will be used for additional premiums until you change your allocation. o Allocations must be in whole percentages, and total 100%. o You may change your allocation by sending us Written Notice or through an authorized telephone transaction. The change will apply to premiums received on or after the date we receive your Written Notice or authorized telephone transaction. o All premiums will be allocated pursuant to your instructions on record with us. o "Right to Examine" Period Allocations If you are not satisfied with the Policy, you may void it by returning it to us within 10 days of receipt, or longer where required by state law. You will then receive a full refund of your Policy value; however, where required by certain states, or if your Policy was issued as an Individual Retirement Account ("IRA"), you will receive either the premium paid or your Policy value, whichever amount is greater. YOUR POLICY VALUE On your Policy's date of issue, the Policy value equals the initial premium less any charge for applicable premium taxes. On any Business Day thereafter, the Policy value equals the sum of the values in the Separate Account variable investment options. The Policy value is expected to change from day to day, reflecting the expenses and investment experience of the selected variable investment options as well as the deductions for charges under the Policy. o Separate Account Value Premiums or transfers allocated to Subaccounts are accounted for in Accumulation Units. The Policy value held in the Separate Account Subaccounts on any Business Day is determined by multiplying each Subaccount's Accumulation Unit value by the number of Subaccount units allocated to the Policy. Each Subaccount's Accumulation Unit value is calculated at the end of each Business Day as follows: (a) the per share net asset value of the Subaccount's underlying portfolio as of the end of the current Business Day plus any dividend or capital gain distribution declared and unpaid by the underlying portfolio during that Business Day, times the number of shares held by the Subaccount, before the purchase or redemption of any shares on that date; minus (b) the daily mortality and expense risk charge; and this result divided by (c) the total number of Accumulation Units held in the Subaccount on the Business Day before the purchase or redemption of any Accumulation Units on that day. When transactions are made to or from a Subaccount, the actual dollar amounts are converted to Accumulation Units. The number of Accumulation Units for a transaction is equal to the dollar amount of the transaction divided by the Accumulation Unit value on the Business Day the transaction is made. Form 6151 NLVA -12- An investment in money market funds is neither insured nor guaranteed by the U.S. Government. There can be no assurance that the funds will be able to maintain a stable net asset value of $1.00 per share. Notwithstanding the preceding statements, Owners will be guaranteed to receive $1.00 net asset value for amounts they had invested in the money market account as of September 19, 2008, subject to the terms of the U.S. Treasury's Temporary Guarantee Program for Money Market Funds (the "Program"). The Program is currently set to expire on September 18, 2009. TELEPHONE TRANSACTIONS Telephone Transactions Permitted o Transfers among investment options. o Change of premium allocations. How to Authorize Telephone Transactions o Upon your authorization on the Policy application or in Written Notice to us, you or a third person named by you may do telephone transactions on your behalf. You bear the risk of the accuracy of any designated person's instructions to us. Telephone Transaction Rules: o Must be received by the times listed in this prospectus' TRANSFERS section "Transfer Rules" on a day the New York Stock Exchange ("NYSE") is open; if later, the transaction will be processed the next day the NYSE is open. o Calls will be recorded for your protection. o For security, you or your authorized designee must provide your Social Security number and/or other identification information. o May be discontinued at any time as to some or all Owners. We are not liable for following telephone transaction instructions we reasonably believe to be genuine. DELAY OF PAYMENTS We will usually pay any amounts requested as a full surrender or partial withdrawal from the Separate Account within 7 days after we receive your Written Notice. We can postpone such payments or any transfers out of a Subaccount if: (i) the NYSE is closed for other than customary weekend and holiday closings; (ii) trading on the NYSE is restricted; (iii) an emergency exists as determined by the SEC, as a result of which it is not reasonably practical to dispose of securities, or not reasonably practical to determine the value of the net assets of the Separate Account; or (iv) the SEC permits delay for the protection of security holders. The applicable rules of the SEC will govern as to whether the conditions in (iii) or (iv) exist. BENEFICIARY You may change your beneficiary by sending Written Notice to us, unless the named beneficiary is irrevocable. Once we record and acknowledge the change, it is effective as of the date you signed the Written Notice. The change will not apply to any payments made or other action taken by us before recording. If the named beneficiary is irrevocable you may change the named beneficiary only by Written Notice signed by both you and the beneficiary. If more than one named beneficiary is designated, and you fail to specify their interest, they will share equally. If there are joint Owners, the surviving joint Owner will be deemed the beneficiary, and the beneficiary named in the Policy application or subsequently changed will be deemed the contingent beneficiary. If both joint Owners die simultaneously, the death benefit will be paid to the contingent beneficiary. If the beneficiary is your surviving spouse, the spouse may elect either to receive the death benefit, in which case the Policy will terminate, or to continue the Policy in force with the spouse as Owner. If the named beneficiary dies before you, then your estate is the beneficiary until you name a new beneficiary. MINOR OWNER OR BENEFICIARY A minor may not own the Policy solely in the minor's name and cannot receive payments directly as a Policy beneficiary. Contrary to common belief, in most states parental status does not automatically give parents the power to provide an adequate release to us to make beneficiary payments to the parent for the minor's benefit. A minor can "own" a Policy through the trustee of a trust established for the minor's benefit, or through the minor's named and court appointed guardian, who owns the Policy in his or her capacity as trustee or guardian. Where a Form 6151 NLVA -13- minor is a named beneficiary, we are able to pay the minor's beneficiary payments to the minor's trustee or guardian. Some states allow us to make such payments up to a limited amount directly to parents. Parents seeking to have a minor's interest made payable to them for the minor's benefit are encouraged to check with their local court to determine the process to be appointed as the minor's guardian; it is often a very simple process that can be accomplished without the assistance of an attorney. If there is no adult representative able to give us an adequate release for payment of the minor's beneficiary interest, we will retain the minor's interest on deposit until the minor attains the age of majority. POLICY CHANGES Any change to your Policy is only effective if on a form acceptable to us, and then only once it is received at our Service Center and recorded on our records. Information on how to contact us to determine what information is needed and where you can get various forms for Policy changes is shown on this Prospectus' first two pages and last page. POLICY TERMINATION We may treat any partial withdrawal that leaves a Cash Surrender Value of less than $1,000 as a complete surrender of the Policy. See this prospectus' POLICY DISTRIBUTIONS: Withdrawals section for more information. If you have paid no premiums during the previous 36-month period, we have the right to pay you the total value of your Policy in a lump sum and cancel the Policy if (i) the Cash Surrender Value is less than $1,000 (does not apply to IRAs), or (ii) the paid-up life-time income annuity benefit at maturity, based on an accumulation of the Policy value to maturity, would be less than $20 per month. POLICY DISTRIBUTIONS There are several ways to take all or part of your investment out of your Policy, both before and after the Annuity Date. Tax penalties may apply to amounts taken out of your Policy before the Annuity Date. Your Policy also provides a death benefit that may be paid upon your death prior to the Annuity Date. All or part of a death benefit may be taxable. WITHDRAWALS You may withdraw, by Written Notice, all or part of your Policy's Cash Surrender Value prior to the Annuity Date. Following a full surrender of the Policy, or at any time the Policy value is zero, all your rights in the Policy end. Total surrender requires you to return your Policy to us. Withdrawals may be subject to: - Income Tax - Penalty Tax Withdrawal Rules o Withdrawals must be by Written Notice. A request for a systematic withdrawal plan must be on our form and must specify a date for the first payment, which must be the 1st through 28th day of the month. o Minimum withdrawal is $250. o We may treat any partial withdrawal that leaves a Cash Surrender Value of less than $1,000 as a complete surrender of the Policy. o Withdrawal results in cancellation of Accumulation Units from each applicable Subaccount. If you do not specify which investment option(s) from which to take the withdrawal, it will be taken from each investment option in the proportion that the Policy value in each investment option bears to the total Policy value. o The amount paid to you upon total surrender of the Policy (taking any prior partial withdrawals into account) may be less than the total premiums made, because we will deduct any charges owed but not yet paid, a premium tax charge may apply to withdrawals, and because you bear the investment risk for all amounts you allocate to the Separate Account. o Unless you give us Written Notice not to withhold taxes from a withdrawal, we must withhold 10% of the taxable amount withdrawn to be paid as a federal tax, as well as any amounts required by state laws to be withheld for state income taxes. Form 6151 NLVA -14- ALIC and the Separate Account may allow facsimile request forms and signatures to be used for the purpose of a "Written Notice" authorizing withdrawals from your Policy. You may complete and execute a withdrawal form and send it to our Service Center fax number, 402-467-7335. We may offer this method of withdrawal as a service to meet your needs when turnaround time is critical. However, by not requiring an original signature there is a greater possibility that unauthorized persons can manipulate your signature and make changes on your Policy (including withdrawals) without your knowledge. o Systematic Withdrawal Plan The systematic withdrawal plan allows you to automatically withdraw payments of a pre-determined dollar amount or fixed percentage of Policy value from a specified investment option monthly, quarterly, semi-annually or annually. We can support and encourage your use of electronic fund transfer of systematic withdrawal plan payments to an account of yours that you specify to us. The fixed dollar amount of systematic withdrawals may be calculated in support of Internal Revenue Service minimum distribution requirements over the lifetime of the Annuitant. No systematic withdrawal may be established after the 28th of each month. Although this plan mimics annuity payments, each distribution is a withdrawal that may be taxable and subject to the charges and expenses described above; you may wish to consult a tax advisor before requesting this plan. DEATH BENEFITS o Death Benefit Upon Owner's Death We will pay the death benefit after we receive Due Proof of Death of an Owner's death or as soon thereafter as we have sufficient information about the beneficiary to make the payment. Death benefits may be paid pursuant to an annuity income option to the extent allowed by applicable law and any settlement agreement in effect at your death. If the beneficiary does not make an annuity income option election within 60 days of our receipt of Due Proof of Death, we will issue a lump-sum payment to the beneficiary. A death benefit is payable upon: - Your Policy being in force; - Receipt of Due Proof of Death of the first Owner to die; - Election of an annuity income option; and - Proof that the Owner died before any annuity payments begin. "Due Proof of Death" is a certified copy of a death certificate, a certified copy of a decree of a court of competent jurisdiction as to the finding of death, a written statement by the attending physician, or any other proof satisfactory to us. Until we receive Due Proof of Death and instructions, in the proper form, from your beneficiaries, your Policy will remain allocated to the Subaccounts you chose, so the amount of the death benefit will reflect the investment performance of those subaccounts during this period. If your Policy has multiple beneficiaries, we will calculate and pay each beneficiary's share of the death benefit proceeds when we receive Due Proof of Death and instructions, in proper form, from that beneficiary. The death benefit proceeds still remaining to be paid to other beneficiaries will remain allocated to and continue to fluctuate with the investment performance of the Subaccounts you chose, until each beneficiary has provided us instructions in the proper form. If an Owner of the Policy is a corporation, trust or other non-individual, we treat the primary Annuitant as an Owner for purposes of the death benefit. The "primary Annuitant" is that individual whose life affects the timing or the amount of the death benefit payout under the Policy. A change in the primary Annuitant will be treated as the death of an Owner. If the Annuitant is an Owner or joint Owner, the Annuitant's death is treated as the Owner's death. If the Annuitant is not an Owner and the Annuitant dies before the Annuity Date, the Owner may name a new Annuitant if such Owner(s) is not a corporation or other non-individual or if such Owner is the trustee of an Internal Revenue Code Section 401(a) retirement plan. If the Owner does not name a new Annuitant, the Owner will become the Annuitant. If your spouse is the Policy beneficiary, Annuitant, or a joint Owner, special tax rules apply. See the IRS Required Distribution Upon Death of Owner section below. We will deduct any applicable premium tax not previously deducted from the death benefit payable. Form 6151 NLVA -15- o Standard Death Benefit Upon any Owner's death before the Annuity Date, the Policy will end, and we will pay a death benefit to your beneficiary. The death benefit equals the larger of: - your Policy value on the later of the date we receive Due Proof of Death or an annuity payout option is elected less any charge for applicable premium taxes; or - adjusted guaranteed death benefit premiums. For policies issued on or after June 1, 2006, if death occurs after age 69, the death benefit is equal to your Policy value on the later of the date we receive Due Proof of Death or an annuity payout option is elected less any charge for applicable premium taxes. We define adjusted guaranteed death benefit premiums as total premiums paid into the policy less an adjustment for each withdrawal. If you have not taken any withdrawals from the policy, the adjusted guaranteed death benefit premiums is equal to the total premiums paid into the policy. To calculate the adjustment amount for the first withdrawal made under the policy, we determine the percentage by which the withdrawal reduces the policy value. For example, a $10,000 withdrawal from a policy with a $100,000 value is a 10% reduction in policy value. This percentage is calculated by dividing the amount of the withdrawal by the policy value immediately prior to taking that withdrawal. The resulting percentage is multiplied by the total premiums paid into the policy immediately prior to the withdrawal and then subtracted from the total premiums paid into the policy immediately prior to the withdrawal. The resulting amount is the adjusted guaranteed death benefit premiums. To arrive at the adjusted guaranteed death benefit premiums for subsequent withdrawals, we determine the percentage by which the policy value is reduced by taking the amount of the withdrawal in relation to the policy value immediately prior to taking the withdrawal. We then multiply the adjusted guaranteed death benefit premiums as determined immediately prior to the withdrawal by this percentage. We subtract that result from the adjusted guaranteed death benefit premiums determined immediately prior to the withdrawal to arrive at the subsequent guaranteed death benefit premiums. Upon any Owner's death on or after the Annuity Date and before all proceeds have been paid, no death benefit is payable, but any remaining proceeds will be paid to the designated annuity benefit payee based on the annuity income option in effect at the time of death. In most cases, when death benefit proceeds are paid in a lump sum, we will pay the death benefit proceeds by establishing an interest bearing account for the beneficiary, in the amount of the death benefit proceeds payable. The same interest rate schedule and other account terms will apply to all beneficiary accounts in place at any given time. We will send the beneficiary a checkbook within 7 days after we receive all the required documents, and the beneficiary will have immediate access to the account simply by writing a check for all or any part of the amount of the death benefit proceeds payable. The account is part of our general account. It is not a bank account and it is not insured by the FDIC or any other government agency. As part of our general account, it is subject to the claims of our creditors. We receive a benefit from all amounts left in the general account. IRS Required Distribution Upon Death of Owner Federal law requires that if your Policy is tax non-qualified and you die before the Annuity Date, then the entire value of your Policy must be distributed within 5 years of your death. The 5-year rule does not apply to that portion of the proceeds which (a) is for the benefit of an individual beneficiary; and (b) will be paid over the lifetime or the life expectancy of that beneficiary as long as payments begin not later than one year after the date of your death. Special rules may apply to your surviving spouse. A more detailed description of these rules and other required distribution rules applicable to tax-qualified Policies is included in Appendix B of this prospectus. o Tables Illustrating Benefits Upon Death The following tables illustrate benefits payable, if any, upon death of a party to the Policy for most, but not necessarily all, situations. The terms of any Policy rider or qualified plan funded by the Policy may change this information. Please consult your own legal and tax advisor for advice. You may contact us for more information. Form 6151 NLVA -16-
If death occurs before the Annuity Date: If the deceased is... and... and... then the... --------------------- ------------------- ------------------------- ------------------------------------------------ any Policy Owner - - - - - - Policy beneficiary receives the death benefit. --------------------- ------------------- ------------------------- ------------------------------------------------ any Policy Owner There is no the beneficiary is the surviving spouse may elect to become the surviving joint Policy Owner's Policy Owner and continue the Policy, or may Policy Owner who surviving spouse, have the Policy end and receive the death is the deceased unless the spouse is benefit. Owner's spouse the surviving joint Policy Owner --------------------- ------------------- ------------------------- ------------------------------------------------ the Annuitant a Policy Owner is there is no named the Policy continues with the Policy Owner as living contingent or joint the Policy Annuitant unless the Owner names a Annuitant new Annuitant. --------------------- ------------------- ------------------------- ------------------------------------------------ the Annuitant the Policy Owner - - - the Annuitant's death is treated as a Policy is a non-person Owner's death. --------------------- ------------------- ------------------------- ------------------------------------------------ the Annuitant a Policy Owner is the contingent or joint contingent Annuitant becomes the Annuitant, living Annuitant is living and the Policy continues. --------------------- ------------------- ------------------------- ------------------------------------------------
If death occurs on or after the Annuity Date: If the deceased is... and... then the... --------------------- ------------------- ------------------------------------------------------------------------- --------------------- ------------------- -------------------------------------------------------------------------- any Policy Owner There is a living surviving Policy Owner remains as Owner for purposes of distributing any joint Owner, and remaining Policy proceeds pursuant to the annuity income option then in the Annuitant is effect. If the annuity benefit payee was the deceased Policy Owner, the living surviving Owner receives the proceeds. If the payee is other than the deceased Owner, proceeds continue to be paid to the payee until the payee's death, then are paid to the Policy beneficiary. --------------------- ------------------- -------------------------------------------------------------------------- any Policy Owner There is no Policy beneficiary becomes the Policy Owner for purposes of distributing surviving joint any remaining Policy proceeds pursuant to the annuity income option then Owner, and in effect. If the annuity benefit payee was the Owner, then the Policy the Annuitant is beneficiary receives the proceeds. If the payee is other than the living Owner, proceeds continue to be paid to the payee until the payee's death, then are paid to the Policy beneficiary. --------------------- ------------------- -------------------------------------------------------------------------- any Annuitant any Policy Owner Policy Owner (or other named payee) receives distribution of any is living remaining Policy proceeds pursuant to the annuity income option then in effect. --------------------- ------------------- -------------------------------------------------------------------------- the Annuitant the Annuitant is Policy beneficiary becomes the Policy Owner for purposes of distributing also the Policy any remaining Policy proceeds pursuant to the annuity income option then Owner in effect. If the annuity benefit payee was the Owner, then the Policy beneficiary receives the proceeds. If the payee is other than the Owner, proceeds continue to be paid to the payee until the payee's death, then are paid to the Policy beneficiary. --------------------- ------------------- --------------------------------------------------------------------------
ANNUITY INCOME BENEFITS A primary function of an annuity contract, like this Policy, is to provide annuity payments to the payee(s) you name. You will receive the annuity benefits unless you designate another payee(s). The level of annuity payments is determined by your Policy value, the Annuitant's sex (except where prohibited by law) and age, and the annuity income option selected. All or part of your Policy Cash Surrender Value may be placed under one or more annuity income options. Annuity payments: - require investments to be allocated to our general account, so are not variable. - may be taxable and, if premature, subject to a tax penalty. Annuity payments must be made to individuals receiving payments on their own behalf, unless otherwise agreed to by us. Any annuity income option is only effective once we acknowledge it. We may require initial and ongoing proof of the Owner's or Annuitant's age or survival. Unless you specify otherwise, the payee is the Owner. Payments under the annuity income options are fixed annuity payments based on a fixed rate of interest at or higher than the minimum effective annual rate which is guaranteed to yield 1.5% on an annual basis. We have sole discretion whether or not to pay a higher interest rate for all annuity income options. Current annuity income option amounts for all options are used if higher than the guaranteed amounts (guaranteed amounts are based upon the tables contained in the Policy). The guaranteed amounts for all annuity income options are based on the interest rate described above. Guaranteed amounts for options 4 and 5 are also based on the A2000 Valuation Mortality Table, projected 20 years. Current interest rates, and further information, may be obtained from us. The amount of each fixed annuity payment is set and begins on the Annuity Date, and does not change. o When Annuity Income Payments Begin You select the Annuity Date by completing an election form that you can request from us at any time. This date may not be any earlier than the fifth Policy Anniversary. If you do not specify a date, the Annuity Date will be the later of the Policy Anniversary nearest the Annuitant's 85th birthday or the fifth Policy Anniversary. Tax-qualified Policies may require an earlier Annuity Date. You may change this date by sending Written Notice for our receipt at least 30 days before the then current Annuity Date. Form 6151 NLVA -17- o Selecting an Annuity Income Option You choose the annuity income option by completing an election form that you can request from us at any time. You may change your selection during your life by sending Written Notice for our receipt at least 30 days before the date annuity payments are scheduled to begin. If no selection is made by then, we will apply the Policy Cash Surrender Value to make annuity payments under annuity income option 4 providing lifetime income payments. The longer the guaranteed or projected annuity income option period, the lower the amount of each annuity payment. If you die before the Annuity Date (and the Policy is in force), your beneficiary may elect to receive the death benefit under one of the annuity income options (unless applicable law or a settlement agreement dictate otherwise). o Annuity Income Options Once fixed annuity payments under an annuity income option begin, they cannot be changed. (We may allow the Annuitant or Beneficiary to transfer amounts applied under options 1, 2 or 3 to option 4, 5 or 6 after the Annuity Date. However, we reserve the right to discontinue this practice.) When the Owner dies, we will pay any unpaid guaranteed payments to your beneficiary. Upon the last payee's death, we will pay any unpaid guaranteed payments to that payee's estate. Note: Unless you elect an annuity income option with a guaranteed period or option 1, it is possible that only one annuity payment would be made under the annuity payout option if the Annuitant dies before the due date of the second annuity payment, only two annuity payments would be made if the Annuitant died before the due date of the third annuity payment, etc. This would not happen if you elect an annuity option guaranteeing either the amount or duration of payments, or just paying interest (options 1, 2, or 3). Part or all of any annuity payment may be taxable as ordinary income. If, at the time annuity payments begin, you have not given us Written Notice to not withhold federal income taxes, we must by law withhold such taxes from the taxable portion of each annuity payment and remit it to the Internal Revenue Service. (Withholding is mandatory for certain tax-qualified Policies.) We may pay your Policy proceeds to you in one sum if they are less than $1,000, or when the annuity income option chosen would result in periodic payments of less than $20. If any annuity payment would be or becomes less than $20, we also have the right to change the frequency of payments to an interval that will result in payments of at least $20. In no event will we make payments under an annuity option less frequently than annually. The annuity income options are: (1) Interest Payment. While proceeds remain on deposit, we annually credit interest to the proceeds. The interest may be paid to the payee or added to the amount on deposit. (2) Designated Amount Annuity. Proceeds are paid in monthly installments of a specified amount over at least a 5-year period until proceeds, with interest, have been fully paid. (3) Designated Period Annuity. Proceeds are paid in monthly installments for the specified period chosen. Monthly incomes for each $1,000 of proceeds, which include interest, are illustrated by a table in the Policy. (4) Lifetime Income Annuity. Proceeds are paid as monthly income during the Annuitant's life. Variations provide for guaranteed payments for a period of time. (5) Joint and Last Survivor Lifetime Income Annuity. Proceeds are paid as monthly income during the joint Annuitants' lives and until the last of them dies. (6) Lump Sum. Proceeds are paid in one sum. Form 6151 NLVA -18- FEDERAL INCOME TAX MATTERS This discussion of how federal income tax laws may affect investment in your variable annuity is based on our understanding of current laws as interpreted by the Internal Revenue Service ("IRS"). It is NOT intended as tax advice. All information is subject to change without notice. We make no attempt to review any state or local laws, or to address estate or inheritance laws or other tax consequences of annuity ownership or receipt of distributions. You should consult a competent tax adviser to learn how tax laws apply to your annuity interests. Section 72 of the Internal Revenue Code of 1986, as amended, (the "Code") governs taxation of annuities in general and Code Section 817 provides rules regarding the tax treatment of variable annuities. Other Code sections may also impact taxation of your variable annuity investment and/or earnings. o Tax Deferrals During Accumulation Period An important feature of variable annuities is tax-deferred treatment of earnings during the accumulation phase. An individual owner is not taxed on increases in the value of a Policy until a withdrawal occurs, either in the form of a non-periodic payment or as annuity payments under the settlement option selected. o Taxation of Withdrawals Withdrawals are included in gross income to the extent of any allocable income. Any amount in excess of the investment in the Policy is allocable to income. Accordingly, withdrawals are treated as coming first from the earnings, then, only after the income portion is exhausted, as coming from principal. If you make a withdrawal, not only is the income portion of such a distribution subject to federal income taxation, but a 10% penalty may apply. However, the penalty does not apply to distributions: o after the taxpayer reaches age 59 1/2; o upon the death of the owner; o if the taxpayer is defined as totally disabled; o as periodic withdrawals that are a series of substantially equal periodic payments made at least annually for the life (or life expectancy) of the taxpayer or for the joint lives (or joint life expectancies) of the taxpayer and the beneficiary; o under an immediate annuity; or o under certain other limited circumstances. o Taxation of Annuity Payments Earnings from a variable annuity are taxable only upon withdrawal and are treated as ordinary income. Generally, the Code provides for the return of your investment in an annuity policy in equal tax-free amounts over the annuity payout period. Fixed annuity payment amounts may be excluded from taxable income based on the ratio of the investment in the Policy to the total expected value of annuity payments. If you elect variable annuity payments, the amount excluded from taxable income is determined by dividing the investment in the Policy by the total number of expected payments. The balance of each payment is taxable income. After you recover your investment in the Policy, any payment you receive is fully taxable. (If a variable payment is less than the excludable amount you should contact your tax adviser to determine how to report any investment not recovered.) The taxable portion of any annuity payment is taxed at ordinary income tax rates. o Taxation of Death Proceeds A death benefit paid under the Policy is taxable income to the beneficiary. The rules on taxation of an annuity apply. Estate taxes may also apply to your estate, even if all or a portion of the benefit is subject to federal income taxes. To be treated as an annuity, a Policy must provide that: (1) if an annuitant dies: (a) on or after the annuity starting date, and (b) before the entire interest in the Policy is distributed, the balance will be distributed at least as rapidly as under the method being used at the date of death, and (2) if the annuitant dies before the annuity starting date, the entire interest must be distributed within five years of death. If distributed in a lump sum, the death benefit amount is taxed in the same manner as a full withdrawal. If the beneficiary is the surviving spouse of the owner it is possible to continue deferring taxes on the accrued and future income of the Policy until payments are made to the surviving spouse. Form 6151 NLVA -19- Tax Treatment of Assignments and Transfers An assignment or pledge of an annuity Policy is treated as a withdrawal. Also, the Code (particularly for tax-qualified plans) and ERISA in some circumstances prohibit such transactions, subjecting them to income tax penalties and additional excise tax. Therefore, you should consult a competent tax adviser if you wish to assign or pledge your Policy. o Tax Treatments by Type of Owner A Policy held by an entity other than a natural person, such as a corporation, estate or trust, usually is not treated as an annuity for federal income tax purposes unless annuity payments start within a year. The income on such a Policy is taxable in the year received or accrued by the owner. However, this rule does not apply if the entity as owner is acting as an agent for an individual or is an estate that acquired the Policy as a result of the death of the decedent. Nor does it apply if the Policy is held by certain qualified plans, is held pursuant to a qualified funding trust (structured settlement plan), or if an employer purchased the Policy under a terminated qualified plan. You should consult your tax adviser before purchasing a Policy to be owned by a non-natural person. o Annuity Used to Fund Qualified Plan The Policy is designed for use with various qualified plans. The Policy will not provide additional tax deferral benefits if it is used to fund a tax-deferred qualified plan. However, Policy features and benefits other than tax deferral may make it an appropriate investment for a qualified plan. Tax rules for qualified plans are very complex and vary according to the type and terms of the plan, as well as individual facts and circumstances. Each purchaser should obtain advice from a competent tax advisor prior to purchasing a Policy issued under a qualified plan. The income on tax sheltered annuity (TSA) and individual retirement annuity (IRA) investments is tax deferred; therefore, any income on variable annuities held by such plans does not receive an additional tax deferral. You should review the annuity features, including all benefits and expenses, prior to purchasing a variable annuity as a TSA or IRA. Tax qualified annuities may be purchased as investments for: o Individual Retirement Annuities (IRAs), Code Section 408(b); o Simplified Employee Pension (SEP IRA), Code Section 408(k); o Savings Incentive Match Plans for Employees (SIMPLE IRA), Code Section 408(p); and o Roth IRAs, Code Section 408A. The Company reserves the right to limit the availability of the Policy for use with any of the plans listed above or to modify the Policy to conform to tax requirements. Some retirement plans are subject to requirements that we have not incorporated into our administrative procedures. Unless we specifically consent, we are not bound by plan requirements to the extent that they conflict with the terms of the Policy o Tax Impact on Account Value Certain Policy credits are treated as taxable "earnings" and not "investments" for tax purposes. Taxable earnings are considered paid out first, followed by the return of your premiums (investment amounts). In addition, taxation order generally considers the last premium withdrawn first ("last-in, first-out"). Form 6151 NLVA -20- MISCELLANEOUS ABOUT OUR COMPANY Ameritas Life Insurance Corp. ("Ameritas") issues the Policy described in this prospectus and is responsible for providing each Policy's insurance and annuity benefits. We are a stock life insurance company organized under the insurance laws of the State of Nebraska - Nebraska's first insurance company - in business since 1887. We are engaged in the business of issuing individual life insurance, annuities and group dental and vision insurance, retirement plans and 401(k) plans throughout the United States, except the State of New York. We are wholly owned by Ameritas Holding Company ("AHC"), a Nebraska stock insurance holding company. AHC is wholly owned by UNIFI Mutual Holding Company ("UNIFI"), a Nebraska mutual insurance holding company. Our address is 5900 "O" Street, Lincoln, Nebraska, 68510. (See the TABLE OF CONTENTS page of this prospectus, or the cover page or last page for information on how to contact us.) DISTRIBUTION OF THE POLICIES Ameritas Investment Corp. ("AIC"), 5900 "O" Street, Lincoln, Nebraska 68510, a majority-owned subsidiary of Ameritas is the principal underwriter of the Policies. AIC enters into contracts with various broker-dealers ("Distributors") to distribute Policies. All persons selling the Policy will be registered representatives of the Distributors, and will also be licensed as insurance agents to sell variable insurance products. AIC is a federally registered broker-dealer and member of the Financial Industry Regulatory Authority ("FINRA"). There is no premium load to cover sales and distribution expenses. All compensation or expense reimbursement received by AIC for serving as principal underwriter of the Policies will be paid by us from our other assets or surplus in our general account, which may include profits derived from mortality and expense risk charges and other charges made under the Policies. Policies can also be purchased from us through salaried employees who are registered representatives of AIC and who will not receive compensation related to the purchase. The Policies are also sold by individuals who are registered representatives of AIC or other broker-dealers. In these situations, we may pay AIC at a rate of up to 0.05% of all premium received, and other broker-dealers at a rate of up to 0.50% of premium plus an asset based administrative compensation of 0.10% (annualized) beginning in the second Policy Year. VOTING RIGHTS As required by law, we will vote the Subaccount shares in the underlying portfolios at regular and special shareholder meetings of the series funds pursuant to instructions received from persons having voting interests in the underlying portfolios. The underlying portfolios may not hold routine annual shareholder meetings. If you send us written voting instructions, we will follow your instructions in voting the Portfolio shares attributable to your Policy. If you do not send us written instructions, we will vote the shares attributable to your Policy in the same proportions as we vote the shares for which we have received instructions from other Policy Owners. We will vote shares that we hold in the same proportions as we vote the shares for which we have received instructions from other Policy Owners. It is possible that a small number of Policy owners can determine the outcome of a voting proposal. LEGAL PROCEEDINGS As of the date of this Prospectus, there are no proceedings affecting the Separate Account, or that are material in relation to our total assets. Form 6151 NLVA -21- APPENDIX A: Accumulation Unit Values The following table shows Accumulation Unit values ("AUVs") for the Subaccounts that fund obligations of Ameritas Life Insurance Corp. Separate Account LLVA (the "Registrant") under variable annuity Policies offered by this prospectus. Ameritas Advisor Select No Load Variable Annuity ("NLVA 6151") AUVs are shown as of the close of business each December 31, which marks the beginning and end of each fiscal period. The table also provides the number of Accumulation Units outstanding for each Subaccount variable investment option portfolio as of the end of the periods indicated for NLVA 6151. The financial statements for the Subaccounts of the Separate Account can be found in the Statement of Additional Information. (See the cover and back page to learn how to get a copy of the Statement of Additional Information.)
------------------------------------------------- --------- ------------------ ------------------ ------------------- NLVA 6151 Number (#) of Subaccount (date Subaccount was added to the AUV ($) at Accumulation Units Policy) Value ($) at End of Year At End of Year Year Inception (December 31) (December 31) ------------------------------------------------- --------- ------------------ ------------------ ------------------- CLASSIC PROFUNDS VP ------------------------------------------------- --------- ------------------ ------------------ ------------------- Bull (4-13-2005) 2005 26.72 28.221 19,017 2006 31.789 45,737 2007 32.622 21,372 2008 20.152 58,506 ------------------------------------------------- --------- ------------------ ------------------ ------------------- Small-Cap (4-13-2005) 2005 33.09 36.779 11,363 2006 41.829 8,293 2007 40.533 264 2008 25.944 349 ------------------------------------------------- --------- ------------------ ------------------ ------------------- NASDAQ-100 (4-13-2005) 2005 14.78 14.984 40,009 2006 15.662 61,857 2007 18.256 15,006 2008 10.407 140 ------------------------------------------------- --------- ------------------ ------------------ ------------------- Mid-Cap Value (4-13-2005) 2005 33.88 34.645 14,013 2006 38.559 6,505 2007 38.583 866 2008 24.358 2,648 ------------------------------------------------- --------- ------------------ ------------------ ------------------- Small-Cap Value (4-13-2005) 2005 31.93 32.800 13,386 2006 38.173 2,435 2007 35.098 886 2008 24.110 723 ------------------------------------------------- --------- ------------------ ------------------ ------------------- Europe 30 (4-13-2005) 2005 27.52 27.896 207 2006 32.488 30,515 2007 36.890 33,583 2008 20.471 1,345 ------------------------------------------------- --------- ------------------ ------------------ ------------------- Dow 30 (5-1-2006) 2006 30.00 34.158 20,527 2007 38.231 7,922 2008 23.811 1,765 --------------------------------------------------------------------------------------------------------------------- ULTRA PROFUNDS VP ------------------------------------------------- --------- ------------------ ------------------ ------------------- UltraBull (4-13-2005) 2005 21.27 20.619 98 2006 25.147 5,976 2007 25.134 71,811 2008 8.121 11,026 ------------------------------------------------- --------- ------------------ ------------------ ------------------- UltraMid-Cap (4-13-2005) 2005 33.39 37.858 154 2006 41.512 44 2007 43.596 141 2008 14.053 1,689 ------------------------------------------------- --------- ------------------ ------------------ ------------------- UltraSmall-Cap (4-13-2005) 2005 25.88 30.635 658 2006 38.256 1,278 2007 32.917 7,657 2008 11.031 8,165 ------------------------------------------------- --------- ------------------ ------------------ ------------------- UltraNASDAQ-100 (4-13-2005) 2005 2.46 2.956 110,287 2006 43.695 2,034 2007 55.637 13,543 2008 7.289 25,438 ------------------------------------------------- --------- ------------------ ------------------ ------------------- Form 6151 NLVA -A:1- Accumulation Unit Values ------------------------------------------------- --------- ------------------ ------------------ ------------------- NLVA 6151 Number (#) of Subaccount (date Subaccount was added to the AUV ($) at Accumulation Units Policy) Value ($) at End of Year At End of Year Year Inception (December 31) (December 31) --------------------------------------------------------------------------------------------------------------------- INVERSE PROFUNDS VP ------------------------------------------------- --------- ------------------ ------------------ ------------------- Bear (4-13-2005) 2005 29.55 28.103 59,086 2006 25.771 5,920 2007 25.840 820 2008 34.416 2,889 ------------------------------------------------- --------- ------------------ ------------------ ------------------- Short Small-Cap (4-13-2005) 2005 18.40 16.620 0 2006 14.566 5,273 2007 15.185 20,065 2008 17.720 0 ------------------------------------------------- --------- ------------------ ------------------ ------------------- Short NASDAQ-100 (4-13-2005) 2005 20.44 18.481 17,318 2006 18.066 7,955 2007 16.022 10,417 2008 23.526 20,272 ------------------------------------------------- --------- ------------------ ------------------ ------------------- Short Dow 30 (5-1-2006) 2006 30.00 28.064 219 2007 27.357 93 2008 31.840 0 ------------------------------------------------- --------- ------------------ ------------------ ------------------- SECTOR PROFUNDS VP ------------------------------------------------- --------- ------------------ ------------------ ------------------- Oil & Gas (4-13-2005) 2005 41.54 47.888 646 2006 57.251 7,065 2007 75.162 5,476 2008 46.965 5,038 ------------------------------------------------- --------- ------------------ ------------------ ------------------- Precious Metals (4-13-2005) 2005 29.62 41.116 695 2006 43.749 10,039 2007 53.094 30,790 2008 36.433 13,938 ------------------------------------------------- --------- ------------------ ------------------ ------------------- Real Estate (4-13-2005) 2005 46.95 53.379 31 2006 70.088 5,846 2007 55.835 3,043 2008 32.505 236 --------------------------------------------------------------------------------------------------------------------- NON-EQUITY PROFUNDS VP ------------------------------------------------- --------- ------------------ ------------------ ------------------- U.S. Government Plus (4-13-2005) 2005 31.64 32.744 8,112 2006 30.977 4,786 2007 33.803 28,719 2008 50.160 933 ------------------------------------------------- --------- ------------------ ------------------ ------------------- Rising Rates Opportunity (4-13-2005) 2005 19.99 19.097 113,830 2006 20.848 8,742 2007 18.479 965 2008 10.870 0 --------------------------------------------------------------------------------------------------------------------- ACCESS VP HIGH YIELD FUNDSM ------------------------------------------------- --------- ------------------ ------------------ ------------------- Access VP High Yield FundSM (5-02-2005) 2005 30.00 30.940 0 2006 31.743 1,284 2007 28.916 851 2008 27.046 783 --------------------------------------------------------------------------------------------------------------------- PROFUND VP MONEY MARKET ------------------------------------------------- --------- ------------------ ------------------ ------------------- Profound VP Money Market (4-13-2005) 2005 1.00 1.007 4,935,612 2006 1.036 15,408,022 2007 1.065 10,708,522 2008 1.064 9,449,745 ------------------------------------------------- --------- ------------------ ------------------ -------------------
Form 6151 NLVA -A:2- Accumulation Unit Values APPENDIX B: Tax-Qualified Plan Disclosures -------------------------------------------- ----------------------------------- DISCLOSURE SUMMARY For annuity policies issued as a: | Regular IRA AMERITAS LIFE INSURANCE CORP. | SEP IRA | SIMPLE IRA | Roth IRA -------------------------------------------- ----------------------------------- The Internal Revenue Service (IRS) requires us to provide you this disclosure statement. This Disclosure Statement explains the rules governing your Individual Retirement Account (IRA). The disclosure reflects our current understanding of the law, but for personal tax advice you should consult a lawyer or other licensed tax expert to learn how the applicable tax laws apply to your situation. This Disclosure Summary is NOT intended as, nor does it constitute, legal or tax advice. For further information about IRAs, contact any district office of the IRS, or consult IRS Publication 590: Individual Retirement Arrangements. If you have any questions about your Policy, please contact us at the address and telephone number shown below. YOUR RIGHT TO CANCEL You may cancel your IRA within seven days after the date you receive this disclosure statement. To revoke your plan and receive a refund for the amount paid for your IRA, you must send a signed and dated Written Notice to cancel your Policy no later than the seventh day after issuance to us at: Ameritas Life Insurance Corp., P.O. BOX 82549, Lincoln NE 68501-2549, Telephone 1-800-255-9678. Your revocation will be effective on the date of the postmark (or certification or registration, if applicable), if sent by United States mail, properly addressed and by first class postage prepaid. After seven days following receipt of this Disclosure Statement, you cannot cancel. PROVISIONS OF IRA LAW This disclosure is applicable when our variable annuity policy is used for a Regular IRA, Spousal IRA, Rollover IRA, or a Roth IRA. Additionally, this disclosure provides basic information for when our variable annuity policy is used for a Simplified Employee Pension (SEP)-IRA, or Savings Incentive Match Plan for Employees (SIMPLE)-IRA. A separate policy must be purchased for each individual under each arrangement/plan. While Internal Revenue Code ("IRC") provisions for IRAs are similar for all such arrangements/plans, certain differences are set forth below. REGULAR IRA Eligibility You are eligible to establish a Regular IRA if you are younger than age 70 1/2 and if, at any time during the year, you receive compensation or earned income that is includible in your gross income. Your spouse may also establish a "spousal IRA" that you may contribute to out of your compensation or earned income for any year before the year in which your spouse reaches age 70 1/2. To contribute to a spousal IRA, you and your spouse must file a joint tax return for the taxable year. Additionally, regardless of your age, you may transfer funds from another IRA or certain qualified plans to a "Rollover IRA", which is described below. Annual Contribution Limits You may make annual contributions to a Regular IRA of up to the Annual Contribution Limit ($4,000 for 2005 through 2007, and $5,000 in 2008 and 2009), or 100% of your earned income (compensation), whichever is less. If you are age 50 or older, the Annual Contribution Limits are increased by $1,000, so long as your earned income (compensation) is greater than the Annual Contribution Limit. Beginning after 2009, the Annual Contribution Limits will be increased by the IRS to reflect inflation. If you and your spouse both work and have compensation that is includible in your gross income, each of you can annually contribute to a separate Regular IRA up to the lesser of the Annual Contribution Limit or 100% of your compensation or earned income. However, if one spouse earns less than the Annual Contribution limit, but both spouses together earn at least twice the Annual Contribution Limit, it may be advantageous to use the spousal IRA. The total contributions to both IRAs may not exceed the lesser of twice the Annual Contribution Limit or 100% of you and your spouse's combined compensation or earned income. The combined limit on contributions to both Regular and Roth IRAs for a single calendar year for you may not exceed the Annual Contribution Limit (or twice the Annual Contribution Limit for a couple filing jointly). Distributions from another IRA or certain other qualified plans may be "rolled over" into a Regular IRA and such rollover contributions are not limited by this annual maximum. Ameritas Life Insurance Corp. -B:1- Tax-Qualified Plan Disclosure Contributions must be made by the due date, not including extensions, for filing your tax return. A contribution made between January 1 and the filing due date for your return must be submitted with written direction that it is being made for the prior tax year or it will be treated as made for the current tax year. The amount of permissible contributions may or may not be tax-deductible depending on whether you are an active participant in an employer sponsored retirement plan and whether your adjusted gross income ("AGI") is above the phase-out level. Deductibility of Contributions Contributions made for the tax year are fully deductible if neither you nor your spouse (if married) is an active participant in an employer-sponsored retirement plan (including qualified pension, profit sharing, stock bonus, 401(k), or 403(b) plans, SEP plans, SIMPLE IRA, SIMPLE 401(k) plans, and certain governmental plans for any part of such year. If you are an active participant in an employer sponsored retirement plan you may make deductible contributions if your Adjusted Gross Income (AGI) is below a threshold level of income. For single taxpayers and married taxpayers (who are filing jointly and are both active participants) the available deduction is reduced proportionately over a phaseout range. If you are married and an active participant in an employer retirement plan, but file a separate tax return from your spouse, your deduction is phased out between $0 and $10,000 of AGI. Active participants with income above the phaseout range are not entitled to an IRA deduction. The phaseout limits are scheduled to increase as follows: Married Filing Jointly Single/Head of Household ----------------------------- ------------------------ Year AGI AGI ---- 2005 $70,000 - $ 80,000 $50,000 - $60,000 2006 $75,000 - $ 85,000 $50,000 - $60,000 2007 $80,000 - $ 100,000 $50,000 - $60,000 2008 $85,000 - $ 105,000 $53,000 - $63,000 2009 $89,000 - $ 109,000 $55,000 - $65,000 If you are not an active participant in an employer sponsored plan, but your spouse is an active participant, you may take a full deduction for your IRA contribution (other than to a Roth IRA) if your AGI is below $166,000; if you are not an active participant but your spouse is, the maximum deductible contribution for you is phased out at AGIs between $166,000 and $176,000. Even if you will not be able to deduct the full amount of your Regular IRA contribution, you can still contribute up to the Annual Contribution Limit with all or part of the contribution being non-deductible. The combined total must not exceed your Annual Contribution Limit. Any earnings on all your Regular IRA contributions accumulate tax-free until you withdraw them. Excess Contributions If you contribute in excess of the maximum contribution limit allowed in any year, the excess contribution could be subject to a 6% excise tax. The excess is taxed in the year the excess contribution is made and each year that the excess remains in your Regular IRA. If you should contribute more than the maximum amount allowed, you can eliminate the excess contribution as follows: You may withdraw the excess contribution and net earnings attributable to it before the due date for filing your federal income tax in the year the excess contribution was made. Any earnings so distributed will be taxable in the year for which the contribution was made. If you elect not to withdraw an excess contribution, you may apply the excess against the contribution limits in a later year. This is allowed to the extent you under-contribute in the later year. The 6% excise tax will be imposed in the year you make the excess contribution and each subsequent year, until eliminated. To the extent an excess contribution is absorbed in a subsequent year by contributing less than the maximum deduction allowable for that year, the amount absorbed will be deductible in the year applied (provided you are eligible to take a deduction). Distributions From Your Regular IRA During Your Life You may take distributions from your Regular IRA at any time. However, there is a 10% premature distribution tax on the amount includible in your gross income distributed prior to you attaining age 59 1/2, unless: (1) the distributions made to a beneficiary on or after the owner's death; (2) distribution is made because of your permanent disability; (3) the distribution is part of a series of substantially equal periodic payments (made at least annually) that do not exceed the life expectancy of you and your designated beneficiary; (4) the distribution is made for medical expenses which exceed 7.5% of your adjusted gross income; (5) the distribution is made to purchase health insurance for the individual and/or his or her spouse and dependents if he or she: (a) has received unemployment compensation for 12 consecutive weeks or more; (b) the distributions are made during the tax year that the unemployment compensation is paid or the following tax year; and (c) the individual has not been re-employed for 60 days or more; (6) the distribution is made for certain qualified higher education expenses of the taxpayer, the taxpayer's spouse, or any child or grandchild of the taxpayer or the taxpayer's spouse; (7) the distribution is made for the qualified first-time home buyer expenses (up to a lifetime maximum of $10,000) incurred by you or your spouse or a child, grandchild, parent or grandparent of you or your spouse; or (8) distributions to satisfy a levy issued by the IRS. Generally, the part of a distribution attributable to non-deductible contributions is not includable in income and is not subject to the 10% penalty. When you reach age 70 1/2 you must elect to receive Required Minimum Distributions (RMD) no later than April 1 following the year in which you reach age 70 1/2 whether or not you have retired (Required Distribution Date). There is a minimum amount which you must withdraw by the Required Distribution Date and by each December 31 thereafter. We can provide the RMD amount for you, if you request us to make the calculation. Your own tax or financial advisor may calculate the amount of your minimum distribution each year to make sure this requirement is met, coordinating it with other IRAs you may own. Failure to take the Required Minimum Distribution could result in an additional tax of 50% of the amount not taken.* *Note: Required minimum distributions ("RMD") from IRAs are waived for the calendar year 2009 because of tax law changes signed into law December 23, 2008 (the Workers, Retiree and Employer Recovery Act of 2008). See IRS Notice 2009-9 or your tax advisor for more information. Ameritas Life Insurance Corp. -B:2- Tax-Qualified Plan Disclosure Distributions From Your Regular IRA After Your Death If you die before all the funds in your Regular IRA have been distributed, the remaining funds will be distributed to your designated beneficiary as required below and as selected by such beneficiary.** If you die before the Required Distribution Date, your designated beneficiary must withdraw the funds remaining as follows: 1) distributed no later than December 31 of the calendar year in which the fifth anniversary of your death occurs; or 2) distributed over the life or life expectancy of the named beneficiary and must begin on or before December 31 of the calendar year following the year of your death. However, if the named beneficiary is your spouse; payments may begin before December 31 of the calendar year in which you would have reached age 70 1/2. If you did not designate a proper beneficiary, the funds remaining shall be distributed within five years after your death. If you die after the Required Beginning Date, your designated beneficiary must select to have the remaining amount of your Regular IRA distributed over the longer of 1) the beneficiary's life expectancy or 2) your remaining life expectancy beginning no later than December 31 of the calendar year following the year of your death. If you do not designate a proper beneficiary, your interest is distributed over your remaining life expectancy.** Your surviving spouse, if the sole beneficiary, may elect to treat your Regular IRA as his or her own Regular IRA.** Tax Consequences Amounts paid to you or your beneficiary from your Regular IRA are taxable as ordinary income, except that you recover your nondeductible Regular IRA contributions tax-free. If a minimum distribution is not made from your IRA for a tax year in which it is required, the excess of the amount that should have been distributed over the amount that was actually distributed is subject to an excise tax of 50%. Tax-Free Rollovers Under certain circumstances, you, your spouse, or your former spouse (pursuant to a qualified domestic relations order) may roll over all or a portion of your distribution from another Regular IRA, a 401(a) qualified retirement plan, 401(k) plan, 403(b) plan, governmental 457 plan, SEP plan or SIMPLE plan into a Regular IRA. Such an event is called a Rollover and is a method for accomplishing continued tax deferral on otherwise taxable distributions from said plans. Rollover contributions are not subject to the contribution limits on Regular IRA contributions, but also are not tax deductible. There are two ways to make a Rollover to your IRA: 1. Participant Rollovers are accomplished by contributing part or all of the eligible Rollover distribution (which includes amounts withheld for federal income tax purposes) to your new IRA within 60 days following receipt of the distribution. Participant Rollover amounts are subject to a mandatory 20% federal income tax withholding. Regular IRA to Regular IRA Rollovers are limited to one per distributing plan per 12 month period. However, you may transfer Regular IRA assets to another Regular IRA (where you do not directly receive a distribution) and such transfers are not subject to this limitation. Distributions from a SIMPLE IRA may not be rolled over or transferred to an IRA (which isn't a SIMPLE IRA) during the 2-year period following the date you first participate in any SIMPLE Plan maintained by your employer. 2. Direct Rollovers are made by instructing the plan trustee, custodian, or issuer to pay the eligible portion of your distribution directly to the trustee, custodian or issuer of the receiving IRA. Direct Rollover amounts are not subject to mandatory federal income tax withholding. Certain distributions are not considered to be eligible for Rollover and include: a. distributions which are part of a series of substantially equal periodic payments (made at least annually) for 10 years or more; b. required minimum distributions made during or after the year you reach age 70 1/2; c. any hardship distributions made under the terms of the plan; and d. amounts in excess of the cash (except for certain loan offset amounts) or in excess of the proceeds from the sale of property distributed. Under certain circumstances, you may roll over all or a portion of your eligible distribution from your Regular IRA to a 401(a) qualified retirement plan, 401(k) plan, 403(b) plan, or governmental 457 (No Regular IRA Rollovers to Simple IRAs are allowed). However, you may not roll after-tax contributions from your Regular IRA to a 401(a), 401(k) plan, 403(b) plan, or governmental 457 plan. For rules applicable to rollovers or transfers to Roth IRAs, see the paragraphs on Roth IRA, next page. SEP IRA A SEP Plan allows self-employed people and small business owners to establish SEP IRAs for the business owner and eligible employees, if any. SEP IRAs have specific eligibility and contribution limits (as described in IRS Form 5305-SEP); otherwise SEP IRAs follow the same rules as Regular IRAs.** SIMPLE IRA SIMPLE IRAs operate in connection with a SIMPLE Plan maintained by an eligible employer. Each participating employee has a SIMPLE IRA to receive contributions under the plan. SIMPLE IRAs have specific eligibility, contribution, and tax-withdrawal penalties (as described in IRS Form 5304-SIMPLE); otherwise, SIMPLE IRAs follow the same rules as Regular IRAs.** ** See Footnote at bottom of Page B:2 Ameritas Life Insurance Corp. -B:3- Tax-Qualified Plan Disclosure ROTH IRA Eligibility You are eligible to make annual contributions to a Roth IRA if you receive compensation from employment, earnings from self-employment, or alimony, and your (and your spouse's) AGI is within the limits described below. Also, you may contribute to a different Roth IRA, established by your spouse (spousal Roth IRA), out of your compensation or earned income for any year. Unlike Regular IRAs, if eligible, you may contribute to a Roth IRA even after age 70 1/2. Limit on Annual Contributions You can make annual contributions to a Roth IRA of up to the Annual Contribution Limit or 100% of your compensation or earned income, whichever is less, subject to the limitations below. The Annual Contribution Limit is $4,000 for 2005 through 2007, and $5,000 thereafter. If you are age 50 or older, the Annual Contribution Limits are increased by $1,000 per year, so long as your earned income or compensation is greater than the Annual Contribution Limit. Beginning after 2009, the Annual Contribution Limits will be increased by the IRS to reflect inflation. If each spouse earns at least the Annual Contribution Limit, each of you may make the maximum contribution to your Roth IRA respectfully, subject to the limitations discussed below. However, if one spouse earns less than the Annual Contribution limit, but both spouses together earn at least twice the Annual Contribution Limit, it may be advantageous to use the spousal Roth IRA. The total contributions to both Roth IRAs may not exceed the lesser of twice the Annual Contribution Limit or 100% of you and your spouse's combined compensation or earned income. The Annual Contribution Limit is the maximum that can be contributed to all IRAs (Roth and Regular) by an individual in a year. The maximum amount that may be contributed to your Roth IRA is always reduced by any amount that you have contributed to your Regular IRAs for the year. The maximum amount you or your spouse may contribute to a Roth IRA is limited based on your tax filing status and your (and your spouse's) AGI. You may contribute the maximum contribution to your Roth IRA if you are single and your AGI is less than $105,000. Your ability to contribute to your Roth IRA is phased out at $120,000. You may contribute the maximum contribution to your Roth IRA if you are married filing jointly and your AGI is less than $166,000. Your ability to contribute to your Roth IRA is phased out at $176,000. Roth IRA contributions must be made by the due date, not including extensions, for filing your tax return. A contribution made between January 1 and the filing due date for your return, must be submitted with written direction that it is being made for the prior tax year or it will be treated as made for the current tax year. Deductibility of Contributions Unlike a Regular IRA, contributions to your Roth IRA are not deductible. Excess Contributions If you contribute in excess of the maximum contribution limit allowed in any year, the excess contribution could be subject to a 6% excise tax. The excess is taxed in the year the excess contribution is made and each year that the excess remains in your Roth IRA. If you should contribute more than the maximum amount allowed, you can eliminate the excess contribution as follows: o You may withdraw the excess contribution and net earnings attributable to it before the due date for filing your federal income tax in the year the excess contribution was made. Any earnings so distributed will be taxable in the year for which the contribution was made and may be subject to the 10% premature distribution tax. o If you elect not to withdraw an excess contribution, you may apply the excess against the contribution limits in a later year. This is allowed to the extent you under-contribute in the later year. The 6% excise tax will be imposed in the year you make the excess contribution and each subsequent year, until eliminated. To the extent an excess contribution is absorbed in a subsequent year by contributing less than the maximum deduction allowable for that year, the amount absorbed will be deductible in the year applied (provided you are eligible to take a deduction). Tax on Withdrawals From Your Roth IRA You can make withdrawals from your Roth IRA at any time and the principal amounts that you contributed are always available to be withdrawn by you tax-free. Withdrawal of amounts considered earnings or growth will also be tax-free if the following qualified distribution requirements are met: 1) the withdrawal must satisfy the five-year holding period and be made either on or after you reach 59 1/2, due to your death or disability, or for qualified first-time homebuyer expenses. If the requirements for a tax-free withdrawal are not met, a withdrawal consisting of your own prior contribution amounts for your Roth IRA will not be considered taxable in the year you receive it, nor will the 10% penalty apply. A non-qualified withdrawal that is considered earnings on your contributions is includible in your gross income and may be subject to the 10% withdrawal penalty. Also, the 10% premature distribution penalty tax may apply to conversion amounts distributed even though they are not includable in income, if the distribution is made within the 5-taxable-year period beginning on the first day of the individual's taxable year in which the conversion contribution was made. Required Payments From Your Roth IRA Unlike a Regular IRA, while you are living, there are no distribution requirements for your Roth IRA. After your death, if you have begun to receive distributions under an annuity option (not including an interest only option), the remaining Policy value will continue to be distributed to your designated beneficiary according to the terms of the elected options, provided that method satisfies IRC requirements. If you die before your entire interest in the Policy is distributed, your entire interest in your Roth IRA generally must be distributed no later than the end of the fifth calendar year after your death occurs ("five-year payout rule"). Your designated beneficiary may elect to receive distributions over a period not longer than his or her life expectancy, if the election is made and distributions begin on or before the end of the year following the year of your death. Otherwise, the entire benefit must be paid under the five-year payout rule. If the designated beneficiary is your surviving spouse, the spouse may elect to treat the Roth IRA as his or her own. Rollovers and Conversions You may roll over any amount from an existing Roth IRA to another Roth IRA. Under certain circumstances, you may also convert an existing Regular IRA to a Roth IRA. You can roll over distributions from a Regular IRA to a Roth IRA if your AGI is $100,000 or less and you convert such amounts within **See Footnote at bottom of Page B:2 Ameritas Life Insurance Corp. -B:4- Tax-Qualified Plan Disclosure 60 days after distribution. Note that contributions to a Roth IRA are not deductible and income limits apply. There may be additional income tax consequences upon such a conversion. You will have excess contributions if the amount you convert to a Roth IRA plus your contributions to all of your IRAs exceed your IRA contribution limits for the year. To avoid the 6% excise tax on excess contributions, you must withdraw the excess contributions plus earnings before your tax return due date or recharacterize the contribution, if permitted. Consult your financial adviser to determine other considerations when converting a Regular IRA to a Roth IRA. Recharacterization You may correct an IRA contribution or conversion by recharacterizing your contribution or conversion. For example, you may have converted from a Regular IRA to a Roth IRA and learn later you were not eligible to make the conversion. You may accomplish a recharacterization by making a trustee-to-trustee transfer (including any net income attributable to the contribution) from the first IRA to the second IRA, on or before your tax return due date for reporting the contribution to the first IRA. Once the transfer is made, the election is irrevocable. Recharacterizing a contribution treats it as contributed to the second IRA on the same date as initially contributed to the first IRA. If you elect to recharacterize a contribution, you must report it on your Federal income tax return as made to the second IRA, instead of the first. Consult your tax adviser before recharacterizing a contribution. GENERAL INFORMATION AND RESTRICTIONS FOR ALL IRAS Lump Sum Distribution If you decide to receive the entire value of your IRA Plan in one lump sum, the full amount is taxable when received (except as to non-deductible contributions in a Regular IRA or to "qualified distributions" from a Roth IRA), and is not eligible for the special 5 or 10 year averaging tax rules under IRC Section 402 on lump sum distributions which may be available for other types of Qualified Retirement Plans Nontransferability You may not transfer, assign or sell your IRA to anyone (except in the case of transfer incident to divorce). Nonforfeitability The value of your IRA belongs to you at all times, without risk of forfeiture. Loans and Prohibited Transactions If you engage in a so-called prohibited transaction as defined by the Internal Revenue Code, your IRA will be disqualified and the entire taxable balance in your Regular IRA account, and the amount of earnings or gains in your Roth IRA account, will be taxed as ordinary income in the year of the transaction. You may also have to pay the 10% penalty tax. For example, IRAs do not permit loans. You may not borrow from your IRA (including Roth IRAs) or pledge it as security for a loan. A loan would disqualify your entire IRA and be treated as a distribution. It would be includable in your taxable income in the year of violation and subject to the 10% penalty tax on premature distributions. A pledge of your IRA as security for a loan would cause a constructive distribution of the portion pledged and also be subject to the 10% penalty tax. Financial Disclosure Contributions to your IRA will be invested in a variable annuity policy. The variable annuity policy, its operation, and all related fees and expenses are explained in detail in the prospectus to which this Disclosure Statement is attached. Growth in the value of your variable annuity policy IRA cannot be guaranteed or projected. The income and expenses of your variable annuity policy will affect the value of your IRA. Dividends from net income earned are reduced by investment advisory fees and also by certain other costs. For an explanation of these fees and other costs, please refer to this prospectus. STATUS OF OUR IRA PLAN We may, but are not obligated to, seek IRS approval of your Regular IRA or Roth IRA form. Approval by the IRS is optional to us as the issuer. Approval by the IRS is to form only and does not represent a determination of the merits of the Regular IRA or Roth IRA. Ameritas Life Insurance Corp. -B:5- Tax-Qualified Plan Disclosure IMSA We are a member of the Insurance Marketplace Standards Association ("IMSA"). IMSA is a voluntary membership organization created by the life insurance industry to promote ethical market conduct for individual life insurance and annuity products. Our membership in IMSA applies to us only and not to our products or affiliates. THANK YOU for reviewing this Prospectus. You should also review the series fund prospectuses for those Subaccount variable investment option underlying portfolios you wish to select. IF YOU HAVE QUESTIONS, for marketing assistance or other product questions prior to issue, call us at: Ameritas Life Insurance Corp. Telephone: 1-800-255-9678 for all other matters, write or call us at: Ameritas Life Insurance Corp. P.O. BOX 82549 Lincoln NE 68501-2549 or 5900 "O" Street Lincoln, Nebraska 68510 Telephone: 1-800-255-9678 Fax: 1-402-467-7335 Interfund Transfer Request Fax: 1-402-467-7923 e-mail: www.advisorva.com REMEMBER, THE CORRECT FORM is important for us to accurately process your Policy elections and changes. Many can be found on the on-line services section of our Web Site. Or, call us at our toll-free number and we will send you the form you need. STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS A Statement of Additional Information and other information about us and the Policy with the same date as this prospectus is on file with the SEC and is incorporated into this prospectus by reference. For a free copy, access it on the SEC's Web Site (www.sec.gov, select "Search for Company Filings," then "Companies," then type in file number 333-122109), or write or call us. Here is the Table of Contents for the Statement of Additional Information: Begin on Page ------------------------------------------ ----------- General Information and History 1 Services ------------------------------------------ ----------- Purchase of Securities Being Offered 2 Underwriters Calculation of Performance Standardized Performance Reporting Non-Standardized Performance Reporting ------------------------------------------ ----------- Yields 3 ------------------------------------------ ----------- Other Information 4 Service Marks and Copyright Financial Statements ------------------------------------------ ----------- Form 6151 NLVA Last Page SEC Registration # 811- 07661, 333-122109 Statement of Additional Information: May 1, 2009 to accompany Policy Prospectus dated: May 1, 2009 Ameritas Life Insurance Corp. Logo Ameritas Advisor Select No Load Variable Annuity (sm) Policy Form 6151 Flexible Premium Deferred Variable Annuity Policy Ameritas Life Insurance Corp. Separate Account LLVA TABLE OF CONTENTS Page General Information and History....................1 Services Purchase of Securities Being Offered...............2 Underwriters Calculation of Performance Standardized Performance Reporting Non-Standardized Performance Reporting Yields 3 Other Information..................................4 Service Marks and Copyright Financial Statements This Statement of Additional Information is not a prospectus. It contains information in addition to and more detailed than set forth in the Policy prospectus and should be read in conjunction with the prospectus. The Policy prospectus may be obtained from our Service Center by writing us at P.O. Box 81889, Lincoln, Nebraska 68501, by e-mailing us through our Web Site at www.advisorva.com, or by calling us at 1-800-255-9678. Defined terms used in the current prospectus for the Policies are incorporated in this Statement. GENERAL INFORMATION AND HISTORY Ameritas Life Insurance Corp. Separate Account LLVA is a separate investment account of Ameritas Life Insurance Corp. ("we, us, our, Ameritas"). We are a stock life insurance company organized under the insurance laws of the State of Nebraska in 1887. We are wholly owned by Ameritas Holding Company ("AHC"), a Nebraska stock insurance holding company. AHC is wholly owned by UNIFI Mutual Holding Company ("UNIFI"), a Nebraska mutual insurance holding company. We issue life and health insurance and annuities throughout the United States (except in New York). The UNIFI companies are a diversified family of financial services businesses. Each UNIFI company is solely responsible for its own financial condition and contractual obligations. SERVICES The statutory statements of admitted assets, liabilities and capital and surplus of Ameritas Life Insurance Corp., a wholly owned subsidiary of Ameritas Holding Company, which is a wholly owned subsidiary of UNIFI Mutual Holding Company, as of December 31, 2008 and 2007, and the related statutory statements of operations, changes in capital and surplus, and cash flows for each of the three years in the period ended December 31, 2008 have been audited by Deloitte & Touche LLP, independent auditors, as stated in their report appearing herein and the statements of net assets of each of the subaccounts of Ameritas Life Insurance Corp. Separate Account LLVA as of December 31, 2008, and the related statements of operations for the period then ended, the statements of changes in net assets for each of the periods in the two years then ended and the financial highlights for each of the periods in the five years then ended, have been audited by Deloitte & Touche LLP, independent registered public accounting firm, as stated in their report appearing herein, and are included in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing. The principal business address of Deloitte & Touche LLP is 1248 "O" Street, Suite 716, Lincoln, Nebraska 68508. Affiliates of Ameritas provide administrative services to Ameritas relating to policies offered by its separate accounts, including Ameritas Life Insurance Corp. Separate Account LLVA (the "Registrant"). These services are Policy 6151 NLVA SAI: 1 Statement of Additional Information provided under the UNIFI Companies' General Administrative Services Agreement dated January 1, 2006 (the "Agreement"). Under the terms of the Agreement, certain affiliates provided management, administrative, information technology, actuarial, and other services to Ameritas. The Agreement is not an agreement of the Registrant, nor are the services under the Agreement provided to the Registrant. For the services provided to Ameritas relating to the Registrant and its variable annuities under the terms of the Agreement, Ameritas paid the following amounts to the listed affiliates in the last three years: -------------------------------- AFFILIATE: YEAR: 2006 2007 2008 ----------------------------------------------- ---------- ---------- ---------- The Union Central Life Insurance Company $93,221 $210,462 $149,944 ----------------------------------------------- ---------- ---------- ---------- Acacia Life Insurance Company $0 $2,658 $8,031 -------------------------------------------------------------------------------- All matters of state and federal law pertaining to the Policies have been reviewed by our internal legal staff. PURCHASE OF SECURITIES BEING OFFERED The Policy will be sold by licensed insurance agents in states where the Policies may be lawfully sold. The agents will be registered representatives of broker-dealers that are registered under the Securities Exchange Act of 1934 and members of the Financial Industry Regulatory Authority. UNDERWRITERS The Policy is offered continuously and is distributed by Ameritas Investment Corp ("AIC"), 5900 "0" Street, Lincoln, Nebraska 68510. We are the direct majority owner of AIC. AIC enters into contracts with various broker-dealers ("Distributors") to distribute Policies.
--------------- --------------- --------------- YEAR: 2006 2007 2008 ---------------------------------------------------------------------- --------------- --------------- --------------- ---------------------------------------------------------------------- --------------- --------------- --------------- Variable annuity commission we paid to AIC that were paid to other $1,192,963 $62,507 $59,223 broker-dealers and representatives (not kept by AIC). ---------------------------------------------------------------------- --------------- --------------- --------------- Variable annuity commission earned and kept by AIC. None None None ---------------------------------------------------------------------- --------------- --------------- --------------- Fees we paid to AIC for variable annuity Principal Underwriter $19,602 None None services. ---------------------------------------------------------------------- --------------- --------------- ---------------
CALCULATION OF PERFORMANCE When we advertise performance for a Subaccount (except any Money Market Subaccount), we will include quotations of standardized average annual total return to facilitate comparison with standardized average annual total return advertised by other variable annuity separate accounts. Standardized average annual total return for a Subaccount will be shown for periods beginning on the date the Subaccount first invested in a corresponding series fund portfolio. We will calculate standardized average annual total return according to the standard methods prescribed by rules of the Securities and Exchange Commission ("SEC"). We report average annual total return information via Internet and periodic printed reports. Average annual total return quotations on our Internet Web Site will be current as of the previous Business Day. Printed average annual total return information may be current to the last Business Day of the previous calendar week, month, or quarter preceding the date on which a report is submitted for publication. Both standardized average annual total return quotations and non-standardized total return quotations will cover at least periods of one, five, and ten years, or a period covering the time the Subaccount has been in existence, if it has not been in existence for one of the prescribed periods. If the corresponding series fund portfolio has been in existence for longer than the Subaccount, the non-standardized total return quotations will show the investment performance the Subaccount would have achieved (reduced by the applicable charges) had it been invested in the series fund portfolio for the period quoted; this is referred to as "adjusted historical" performance reporting. Standardized average annual total return is not available for periods before the Subaccount was in existence. Quotations of standardized average annual total return and non-standardized total return are based on historical earnings and will fluctuate. Any quotation of performance should not be considered a guarantee of future performance. Factors affecting the performance of a Subaccount and its corresponding series fund portfolio include general market conditions, operating expenses and investment management. An Owner's withdrawal value upon surrender of a Policy may be more or less than the premium invested in the Policy. Policy 6151 NLVA SAI: 2 Statement of Additional Information Standardized Performance Reporting Standardized average annual total return for a specific period is calculated by taking a hypothetical $1,000 investment in a Subaccount at the offering on the first day of the period ("initial investment"), and computing the ending redeemable value ("redeemable value") of that investment at the end of the period. The redeemable value is then divided by the initial investment and expressed as a percentage, carried to at least the nearest hundredth of a percent. Standardized average annual total return is annualized and reflects the deduction of the current mortality and expense fee and the current annual Policy Fee. No deduction is made for premium taxes which may be assessed by certain states. Non-Standardized Performance Reporting We may also advertise non-standardized total return. Non-standardized total return may assume: (1) the Policy is not surrendered; (2) the Subaccounts have existed for periods other than those required to be presented; (3) current charges are incurred if they are less than the Policy's guaranteed maximum charges; or (4) may differ from standardized average annual total return in other ways disclosed in the table description. Non-standardized total return may also assume a larger initial investment which more closely approximates the size of a typical Policy. For these reasons, non-standardized total returns for a Subaccount are usually higher than standardized total returns for a Subaccount. Yields We may advertise the current annualized yield for a 30-day period for a Subaccount. The annualized yield of a Subaccount refers to the income generated by the Subaccount over a specified 30-day period. Because this yield is annualized, the yield generated by a Subaccount during the 30-day period is assumed to be generated each 30-day period. The yield is computed by dividing the net investment income per Accumulation Unit earned during the period by the price per unit on the last day of the period, according to the following formula: YIELD=2[(a - b +1)(6) - 1] Cd Where a=net investment income earned during the period by the portfolio company attributable to shares owned by the Subaccount, b=expenses accrued for the period (net of reimbursements), c=the average daily number of Accumulation Units outstanding during the period, and d=the maximum offering price per Accumulation Unit on the last day of the period. The yield reflects the base Policy mortality and expense risk fee and administrative expense charge. Net investment income will be determined according to rules established by the SEC. The yield assumes an average Policy size of $75,000. Because of the charges and deductions imposed by the Separate Account, the yield for a Subaccount will be lower than the yield for the corresponding series fund portfolio. The yield on amounts held in the Subaccount normally will fluctuate over time. Therefore, the disclosed yield for any given period is not an indication or representation of future yields or rates of return. A Subaccount's actual yield will be affected by the types and quality of portfolio securities held by the series fund and the series fund's operating expenses. Any current yield quotations of a money market Subaccount, subject to Rule 482 of the Securities Act of 1933, will consist of a seven calendar day historical yield, carried at least to the nearest hundredth of a percent. We may advertise yield for the Subaccount based on different time periods, but we will accompany it with a yield quotation based on a seven-day calendar period. A money market Subaccount's yield will be calculated by determining the net change, exclusive of capital changes, in the value of a hypothetical pre-existing Policy having a balance of one Accumulation Unit at the beginning of the base period, subtracting a hypothetical charge reflecting those Policy deductions stated above, and dividing the net change in Policy value by the value of the Policy at the beginning of the period to obtain a base period return and multiplying the base period return by (365/7). A money market Subaccount's effective yield is computed similarly but includes the effect of assumed compounding on an annualized basis of the current yield quotations of the Subaccount. A money market Subaccount's yield and effective yield will fluctuate daily. Actual yields will depend on factors such as the type of instruments in the series fund's portfolio, portfolio quality and average maturity, changes in interest rates, and the series fund's expenses. Although we determine the Subaccount's yield on the basis of a seven calendar day period, we may use a different time period on occasion. The yield quotes may reflect the expense limitations described in the series fund's prospectus or Statement of Additional Information. There is no assurance that the yields quoted on any given occasion will be maintained for any period of time and there is no guarantee that Policy 6151 NLVA SAI: 3 Statement of Additional Information the net asset values will remain constant. It should be noted that neither a Policy owner's investment in a money market Subaccount nor that Subaccount's investment in the underlying money market series fund portfolio is guaranteed or insured. Yields of other money market funds may not be comparable if a different base or another method of calculation is used. Notwithstanding the preceding statements, Owners will be guaranteed to receive $1.00 net asset value for amounts they had invested in the money market account as of September 19, 2008, subject to the terms of the U.S. Treasury's Temporary Guarantee Program for Money Market Funds. OTHER INFORMATION A registration statement has been filed with the SEC under the Securities Act of 1933, as amended, with respect to the Policy described in this Statement. Not all information set forth in the registration statement is addressed in the Policy prospectus or this Statement. Statements in the prospectus and this Statement are intended to be summaries. For a complete statement of the terms of the registration, refer to the documents we file with the SEC. They may be accessed on the SEC's Web Site at www.sec.gov, select "Filings" and type in "Ameritas Life" or you may review and copy it (for a fee) at the SEC's Public Reference Room in Washington D.C. (Call the SEC at 1-202-942-8090 for details and public hours.) SERVICE MARKS AND COPYRIGHT "Ameritas" and the bison symbol are registered service marks of Ameritas Life Insurance Corp. The Policy and Policy prospectus are copyrighted by Ameritas Life Insurance Corp. FINANCIAL STATEMENTS Our financial statements follow this page of this Statement. They bear only on our ability to meet our obligations under the Policy, and should not be considered as bearing on the investment performance of the assets held in the Separate Account. SAI:4 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FINANCIAL STATEMENTS AS OF DECEMBER 31, 2008 AND FOR EACH OF THE PERIODS IN THE TWO YEARS THEN ENDED AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors Ameritas Life Insurance Corp. Lincoln, Nebraska We have audited the accompanying statements of net assets of each of the subaccounts listed in Note 1 which comprise Ameritas Life Insurance Corp. Separate Account LLVA (the "Account") as of December 31, 2008 and the related statements of operations for the period then ended, the statements of changes in net assets for each of the periods in the two years then ended, and the financial highlights for each of the periods in the five years then ended for each of the subaccounts which comprise the Account. These financial statements and financial highlights are the responsibility of management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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. The subaccounts are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of each of the subaccounts' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned at December 31, 2008, by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements and financial highlights present fairly, in all material respects, the financial position of each of the subaccounts constituting Ameritas Life Insurance Corp. Separate Account LLVA as of December 31, 2008, and the results of their operations for the period then ended and changes in their net assets for each of the periods in the two years then ended, and the financial highlights for each of the periods in the five years then ended for each of the subaccounts which comprise the Account, in conformity with accounting principles generally accepted in the United States of America. /s/ Deloitte & Touche LLP Lincoln, Nebraska March 12, 2009 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA STATEMENTS OF NET ASSETS DECEMBER 31, 2008
ASSETS INVESTMENTS AT FAIR VALUE: Calvert Variable Series, Inc. Calvert Portfolios (Calvert): ----------------------------------------------------------- Social Balanced Portfolio (Balanced) - 598,326.865 shares at $1.248 per share (cost $1,049,232) $ 746,712 Social International Equity Portfolio (International Equity) - 81,342.552 shares at $9.12 per share (cost $1,508,691) 741,844 Social Mid Cap Growth Portfolio (Mid Cap) - 26,963.772 shares at $18.99 per share (cost $760,568) 512,042 Social Equity Portfolio (Social Equity) - 43,096.301 shares at $12.95 per share (cost $796,077) 558,097 Calvert Variable Series, Inc. Ameritas Portfolios (Ameritas): ------------------------------------------------------------- Ameritas MidCap Growth Portfolio (MidCap) - 19,947.126 shares at $14.57 per share (cost $722,290) 290,630 Ameritas Small Capitalization Portfolio (Small Cap) - 27,909.056 shares at $23.58 per share (cost $977,032) 658,096 Ameritas Core Strategies Portfolio (Core Strategies) - 73,937.900 shares at $11.60 per share (cost $1,234,980) 857,680 DWS Investments VIT Funds (Scudder): ------------------------------------ DWS Small Cap Index VIP Portfolio, Class A (Small Cap) - 10,408.133 shares at $8.63 per share (cost $147,207) 89,822 DWS Variable Series II (Scudder): --------------------------------- DWS Dreman Small Mid Cap Value VIP Portfolio, Class A (Small Mid Value) - 118,762.049 shares at $7.93 per share (cost $1,101,602) 941,783 DWS Global Thematic VIP Portfolio, Class A (Thematic) - 17,691.495 shares at $5.84 per share (cost $149,578) 103,318 DWS Variable Series I (Scudder): -------------------------------- DWS HealthCare VIP Portfolio, Class A (HealthCare) - 20,687.417 shares at $9.45 per share (cost $235,945) 195,496 Fidelity Variable Insurance Products (Fidelity): ------------------------------------------------ Fidelity VIP Overseas Portfolio, Initial Class (Overseas IC) - 243,968.180 shares at $12.17 per share (cost $5,005,259) 2,969,093 Fidelity VIP Investment Grade Bond Portfolio, Initial Class (Inv. Grade Bond IC) - 692,375.857 shares at $11.84 per share (cost $8,500,097) 8,197,730 Fidelity VIP Equity-Income Portfolio, Initial Class (Equity Income IC) - 123,252.401 shares at $13.18 per share (cost $3,019,444) 1,624,467 Fidelity VIP Growth Portfolio, Initial Class (Growth IC) - 105,620.709 shares at $23.53 per share (cost $3,854,497) 2,485,255 Fidelity VIP High Income Portfolio, Initial Class (High Income IC) - 403,628.204 shares at $3.96 per share (cost $2,130,828) 1,598,368 The accompanying notes are an integral part of these financial statements. FS-2 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA STATEMENTS OF NET ASSETS DECEMBER 31, 2008 ASSETS, continued INVESTMENTS AT FAIR VALUE: Fidelity Variable Insurance Products (Fidelity), continued: ----------------------------------------------------------- Fidelity VIP High Income Portfolio, Service Class (High Income SC) - 168,349.977 shares at $3.94 per share (cost $866,175) $ 663,299 Fidelity VIP Contrafund Portfolio, Initial Class (Contrafund IC) - 800,820.276 shares at $15.39 per share (cost $22,250,929) 12,324,624 Fidelity VIP Contrafund Portfolio, Service Class (Contrafund SC) - 349,281.480 shares at $15.33 per share (cost $9,268,603) 5,354,485 Fidelity VIP Mid Cap Portfolio, Initial Class (Mid Cap IC) - 306,019.214 shares at $18.43 per share (cost $9,020,355) 5,639,934 Fidelity VIP Mid Cap Portfolio, Service Class (Mid Cap SC) - 43,238.105 shares at $18.33 per share (cost $1,359,759) 792,554 Fidelity VIP Strategic Income Portfolio, Initial Class (Strategic) - 42,633.219 shares at $8.94 per share (cost $439,001) 381,141 AIM Variable Insurance Funds (AIM): ----------------------------------- AIM V.I. Financial Services Fund Portfolio, Series I (Financial) - 8,060.697 shares at $4.12 per share (cost $40,657) 33,210 AIM V.I. Global Health Care Fund Portfolio, Series I (Health) - 4,432.718 shares at $12.47 per share (cost $83,540) 55,276 AIM V.I. Technology Fund Portfolio, Series I (Technology) - 5,464.916 shares at $8.38 per share (cost $76,979) 45,796 AIM V.I. International Growth Fund Portfolio, Series I (Intl. Growth) - 9,012.906 shares at $19.49 per share (cost $232,250) 175,662 AIM V.I. Leisure Fund Portfolio, Series I (Leisure) - 1,792.865 shares at $5.02 per share (cost $16,108) 9,000 Janus Aspen Series - Institutional Funds (Janus): ------------------------------------------------- Janus Aspen Large Cap Growth Portfolio (Growth) - 3,099.372 shares at $15.80 per share (cost $59,863) 48,970 Neuberger Berman Advisers Management Trust (Neuberger Berman): -------------------------------------------------------------- Neuberger Berman AMT Balanced Portfolio, Class I (Balanced) - 40,758.376 shares at $7.58 per share (cost $407,278) 308,948 Neuberger Berman AMT Growth Portfolio, Class I (Growth) - 12,220.894 shares at $10.87 per share (cost $211,860) 132,841 Neuberger Berman AMT Short Duration Bond Portfolio, Class I (Bond) - 16,676.279 shares at $10.71 per share (cost $215,829) 178,603 Neuberger Berman AMT Partners Portfolio, Class I (Partners) - 128,442.807 shares at $7.11 per share (cost $1,839,546) 913,228 Neuberger Berman AMT Regency Portfolio, Class I (Regency) - 2,313.408 shares at $8.60 per share (cost $24,361) 19,895 The accompanying notes are an integral part of these financial statements. FS-3 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA STATEMENTS OF NET ASSETS DECEMBER 31, 2008 ASSETS, continued INVESTMENTS AT FAIR VALUE: Rydex Variable Trust (Rydex): ----------------------------- Rydex Nova Fund Portfolio (Nova) - 147,511.744 shares at $4.55 per share (cost $673,356) $ 671,178 Rydex NASDAQ-100 Fund Portfolio (NASDAQ) - 52,417.829 shares at $10.50 per share (cost $616,658) 550,387 Rydex Precious Metals Fund Portfolio (Precious Metals) - 432,988.257 shares at $9.24 per share (cost $4,947,485) 4,000,811 Rydex Inverse S&P 500 Strategy Fund Portfolio (Inv. S&P 500) - 20,654.866 shares at $58.44 per share (cost $1,270,959) 1,207,070 Rydex Government Long Bond 1.2x Strategy Fund Portfolio (Gov. Long Bond) - 111,224.755 shares at $17.24 per share (cost $1,370,274) 1,917,515 Rydex Inverse NASDAQ-100 Strategy Fund Portfolio (Inverse NASDAQ) - 16,829.420 shares at $25.06 per share (cost $388,512) 421,745 Rydex Inverse Government Long Bond Strategy Fund Portfolio (Inv. Long Bond) - 7,348.940 shares at $13.60 per share (cost $144,835) 99,946 Rydex Russell 2000 1.5x Strategy Fund Portfolio (Russell) - 32,248.891 shares at $16.57 per share (cost $934,881) 534,364 Rydex Sector Rotation Fund Portfolio (Sector Rotation) - 109,483.336 shares at $9.05 per share (cost $1,482,025) 990,824 Third Avenue Variable Series Trust (Third Avenue): -------------------------------------------------- Third Avenue Value Portfolio (Value) - 710,626.845 shares at $12.01 per share (cost $16,229,476) 8,534,628 Vanguard Variable Insurance Fund (Vanguard): -------------------------------------------- Vanguard Money Market Portfolio (Money Market) - 55,210,191.380 shares at $1.00 per share (cost $55,210,191) 55,210,191 Vanguard Equity Index Portfolio (Equity Index) - 801,412.442 shares at $17.61 per share (cost $21,374,915) 14,112,873 Vanguard Total Bond Market Index Portfolio (Total Bond) - 2,212,722.296 shares at $11.62 per share (cost $24,570,826) 25,711,833 Vanguard REIT Index Portfolio (REIT Index) - 1,086,315.644 shares at $7.65 per share (cost $18,203,907) 8,310,315 Vanguard Mid-Cap Index Portfolio (Mid-Cap) - 1,070,928.067 shares at $9.22 per share (cost $18,342,476) 9,873,957 Vanguard Total Stock Market Index Portfolio (Stock Market Index) - 398,365.587 shares at $18.17 per share (cost $10,850,099) 7,238,303 Vanguard Equity Income Portfolio (Equity Income) - 771,042.825 shares at $12.08 per share (cost $13,611,594) 9,314,197 The accompanying notes are an integral part of these financial statements. FS-4 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA STATEMENTS OF NET ASSETS DECEMBER 31, 2008 ASSETS, continued INVESTMENTS AT FAIR VALUE: Vanguard Variable Insurance Fund (Vanguard), continued: ------------------------------------------------------- Vanguard Growth Portfolio (Growth) - 504,590.209 shares at $8.89 per share (cost $6,359,207) $ 4,485,807 Vanguard High Yield Bond Portfolio (High Yield Bond) - 743,343.615 shares at $5.91 per share (cost $5,869,009) 4,393,161 Vanguard Balanced Portfolio (Balanced) - 549,669.316 shares at $14.85 per share (cost $10,344,971) 8,162,589 Vanguard International Portfolio (International) - 1,802,448.041 shares at $11.80 per share (cost $34,180,023) 21,268,887 Vanguard Diversified Value Portfolio (Diversified) - 1,471,262.583 shares at $9.57 per share (cost $20,456,527) 14,079,983 Vanguard Small Company Growth Portfolio (Small Company Growth) - 724,734.109 shares at $9.78 per share (cost $12,079,781) 7,087,900 Wells Fargo Advantage Funds - Variable Trust (Wells Fargo): ----------------------------------------------------------- Wells Fargo Advantage VT Discovery Fund Portfolio (Discovery) - 20,111.759 shares at $11.19 per share (cost $336,810) 225,051 Wells Fargo Advantage VT Opportunity Fund Portfolio (Opportunity) - 32,419.379 shares at $10.16 per share (cost $628,892) 329,381 Classic ProFunds VP (ProFunds): ------------------------------- Bull Portfolio (Bull) - 62,281.830 shares at $18.93 per share (cost $1,177,410) 1,178,995 Europe 30 Portfolio (Europe) - 1,687.412 shares at $16.32 per share (cost $51,918) 27,539 Mid-Cap Value Portfolio (Mid-Cap) - 3,857.394 shares at $16.72 per share (cost $103,974) 64,496 NASDAQ-100 Portfolio (NASDAQ-100) - 136.025 shares at $10.71 per share (cost $1,501) 1,457 Small-Cap Portfolio (Small-Cap) - 510.001 shares at $17.76 per share (cost $8,730) 9,058 Small-Cap Value Portfolio (Small-Cap Value) - 935.301 shares at $18.63 per share (cost $22,211) 17,425 Dow 30 Portfolio (Classic Dow) - 1,902.840 shares at $22.08 per share (cost $40,985) 42,015 Inverse ProFunds VP (ProFunds): ------------------------------- Bear Portfolio (Bear) - 2,888.468 shares at $34.42 per share (cost $103,139) 99,421 Short NASDAQ-100 Portfolio (Short NASDAQ) - 23,516.301 shares at $20.28 per share (cost $484,774) 476,911 The accompanying notes are an integral part of these financial statements. FS-5 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA STATEMENTS OF NET ASSETS DECEMBER 31, 2008 ASSETS, continued INVESTMENTS AT FAIR VALUE: Inverse ProFunds VP (ProFunds), continued: ------------------------------------------ Short Small-Cap Portfolio (Short Small-Cap) - 0.000 shares at $17.72 per share (cost $0) $ ---- Short Dow 30 Portfolio (Short Dow) - 0.000 shares at $31.84 per share (cost $0) ---- Ultra ProFunds VP (ProFunds): ----------------------------- UltraMid-Cap Portfolio (UltraMid) - 2,141.635 shares at $11.08 per share (cost $21,378) 23,729 UltraNASDAQ-100 Portfolio (UltraOTC) - 25,260.238 shares at $7.34 per share (cost $191,418) 185,410 UltraSmall-Cap Portfolio (UltraSmall) - 11,591.850 shares at $7.77 per share (cost $84,204) 90,069 UltraBull Portfolio (UltraBull) - 13,324.723 shares at $6.72 per share (cost $83,915) 89,542 Non-Equity ProFunds VP (ProFunds): ---------------------------------- US Government Plus Portfolio (U.S. Gov. Plus) - 990.100 shares at $47.26 per share (cost $32,980) 46,792 Rising Rates Opportunity Portfolio (Opportunity) - 0.000 shares at $10.87 per share (cost $0) ---- Sector ProFunds VP (ProFunds): ------------------------------ Oil & Gas Portfolio (Oil & Gas) - 6,092.139 shares at $38.84 per share (cost $261,539) 236,619 Precious Metals Portfolio (Precious Metals) - 16,239.074 shares at $31.27 per share (cost $469,550) 507,796 Real Estate Portfolio (Real Estate) - 267.630 shares at $28.71 per share (cost $13,911) 7,684 Access VP High Yield Fund (ProFunds): ------------------------------------- Access VP High Yield Fund Portfolio (High Yield) - 852.862 shares at $24.83 per share (cost $24,044) 21,177 ProFunds VP Money Market (ProFunds): ------------------------------------ ProFund VP Money Market Portfolio (Money Market) - 10,056,327.300 shares at $1.00 per share (cost $10,056,327) 10,056,327 PIMCO Variable Insurance Trust (Pimco): --------------------------------------- PIMCO CommodityRealReturn Strategy Portfolio, Administrative Class (Commodity) - 770,097.925 shares at $7.00 per share (cost $9,230,292) 5,390,685 The accompanying notes are an integral part of these financial statements. FS-6 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA STATEMENTS OF NET ASSETS DECEMBER 31, 2008 ASSETS, continued INVESTMENTS AT FAIR VALUE: American Century Investments (American Century): ------------------------------------------------ American Century VP Mid Cap Value Fund Portfolio, Class I (Mid Cap) - 48,051.709 shares at $9.78 per share (cost $533,450) $ 469,946 American Century VP International Fund Portfolio, Class I (International) - 73,135.650 shares at $5.94 per share (cost $685,042) 434,426 Franklin Templeton Variable Insurance Products Trust (Franklin Templeton): -------------------------------------------------------------------------- Templeton Global Income Securities Fund, Class 2 (Global Inc.) - 124,207.891 shares at $17.10 per share (cost $2,062,744) 2,123,955 MFS Variable Insurance Trust (MFS): ----------------------------------- MFS VIT Utilities Series Portfolio, Initial Class (Utilities IC) - 10,114.036 shares at $18.24 per share (cost $277,878) 184,480 MFS VIT Research International Series Portfolio, Initial Class (Research) - 6,043.287 shares at $8.89 per share (cost $62,375) 53,725 Summit Mutual Funds, Inc., Summit Pinnacle Series (Summit): ----------------------------------------------------------- Summit Natural Resources Portfolio (Natural Res) - 9,264.541 shares at $36.41 per share (cost $570,975) 337,322 Summit Zenith Portfolio (Zenith) - 2,101.709 shares at $49.45 per share (cost $101,812) 103,930 Summit S&P 500 Index Portfolio (S&P 500) - 2,963.666 shares at $58.44 per share (cost $171,822) 173,197 T. Rowe Price Equity Series, Inc. (T. Rowe): -------------------------------------------- T. Rowe Price Blue Chip Growth Portfolio (Blue Chip) - 485,886.307 shares at $6.78 per share (cost $4,519,967) 3,294,309 The Universal Institutional Funds, Inc. (Morgan Stanley): --------------------------------------------------------- UIF Emerging Markets Equity Portfolio, Class I (Emerging Markets) - 121,766.574 shares at $7.66 per share (cost $1,631,613) 932,732 ------------------ NET ASSETS REPRESENTING EQUITY OF POLICYOWNERS $ 285,061,964 ==================
The accompanying notes are an integral part of these financial statements. FS-7 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
Calvert ---------------------------------------- Balanced ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ 24,932 Mortality and expense risk charge (4,721) ------------------ Net investment income(loss) 20,211 ------------------ Realized gain(loss) on investments: Net realized gain distributions 13,929 Net realized gain(loss) on sale of fund shares (34,457) ------------------ Net realized gain(loss) (20,528) ------------------ Change in unrealized appreciation/depreciation (292,091) ------------------ Net increase(decrease) in net assets resulting from operations $ (292,408) ================== Balanced ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ 20,211 $ 21,414 Net realized gain(loss) (20,528) 86,396 Net change in unrealized appreciation/depreciation (292,091) (80,311) ------------------ ------------------ Net increase(decrease) in net assets resulting from operations (292,408) 27,499 ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners 23,629 44,747 Subaccounts transfers (including fixed account), net (59,704) 116,254 Transfers for policyowner benefits and terminations (55,031) (148,603) Policyowner maintenance charges (368) (391) ------------------ ------------------ Net increase(decrease) from policyowner transactions (91,474) 12,007 ------------------ ------------------ Total increase(decrease) in net assets (383,882) 39,506 Net assets at beginning of period 1,130,594 1,091,088 ------------------ ------------------ Net assets at end of period $ 746,712 $ 1,130,594 ================== ==================
The accompanying notes are an integral part of these financial statements. FS-8
Calvert ------------------------------------------------------------------------------------------------------------------- International Equity Mid Cap Social Equity ------------------ ------------------- ------------------ 2008 2008 2008 ------------------ ------------------- ------------------ $ 24,718 $ ---- $ ---- (6,132) (4,340) (4,039) ------------------ ------------------- ------------------ 18,586 (4,340) (4,039) ------------------ ------------------- ------------------ 40,717 5,022 5,687 (183,364) (818) (2,295) ------------------ ------------------- ------------------ (142,647) 4,204 3,392 ------------------ ------------------- ------------------ (543,294) (319,638) (310,299) ------------------ ------------------- ------------------ $ (667,355) $ (319,774) $ (310,946) ================== =================== ================== International Equity Mid Cap Social Equity ------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------ ------------------ ------------------- ------------------ ------------------ ------------------- $ 18,586 $ 8,046 $ (4,340) $ (4,148) $ (4,039) $ (4,374) (142,647) 336,023 4,204 27,177 3,392 56,700 (543,294) (339,402) (319,638) 30,895 (310,299) 18,371 ------------------ ------------------ ------------------- ------------------ ------------------ ------------------- (667,355) 4,667 (319,774) 53,924 (310,946) 70,697 ------------------ ------------------ ------------------- ------------------ ------------------ ------------------- 67,777 119,414 2,544 63,950 550 65,587 (17,668) 31,069 (111,063) 369,261 48,395 145,050 (131,411) (86,102) (39,589) (47,311) (100,090) (14,730) (353) (463) (257) (167) (124) (103) ------------------ ------------------ ------------------- ------------------ ------------------ ------------------- (81,655) 63,918 (148,365) 385,733 (51,269) 195,804 ------------------ ------------------ ------------------- ------------------ ------------------ ------------------- (749,010) 68,585 (468,139) 439,657 (362,215) 266,501 1,490,854 1,422,269 980,181 540,524 920,312 653,811 ------------------ ------------------ ------------------- ------------------ ------------------ ------------------- $ 741,844 $ 1,490,854 $ 512,042 $ 980,181 $ 558,097 $ 920,312 ================== ================== =================== ================== ================== ===================
FS-9 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
Ameritas ---------------------------------------- MidCap ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ ---- Mortality and expense risk charge (2,893) ------------------ Net investment income(loss) (2,893) ------------------ Realized gain(loss) on investments: Net realized gain distributions 34,291 Net realized gain(loss) on sale of fund shares (126,791) ------------------ Net realized gain(loss) (92,500) ------------------ Change in unrealized appreciation/depreciation (339,372) ------------------ Net increase(decrease) in net assets resulting from operations $ (434,765) ================== MidCap ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ (2,893) $ (2,854) Net realized gain(loss) (92,500) 211,484 Net change in unrealized appreciation/depreciation (339,372) (80,869) ------------------ ------------------ Net increase(decrease) in net assets resulting from operations (434,765) 127,761 ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners 2,916 3,436 Subaccounts transfers (including fixed account), net (152,918) 731,121 Transfers for policyowner benefits and terminations (107,317) (63,512) Policyowner maintenance charges (169) (184) ------------------ ------------------ Net increase(decrease) from policyowner transactions (257,488) 670,861 ------------------ ------------------ Total increase(decrease) in net assets (692,253) 798,622 Net assets at beginning of period 982,883 184,261 ------------------ ------------------ Net assets at end of period $ 290,630 $ 982,883 ================== ==================
The accompanying notes are an integral part of these financial statements. FS-10
Ameritas Scudder ----------------------------------------------------------------------------- -------------------------------------- Core Small Cap Strategies Small Cap ------------------- ------------------- ------------------ 2008 2008 2008 ------------------- ------------------- ------------------ $ ---- $ 10,092 $ 15,362 (2,895) (2,632) (3,885) ------------------- ------------------- ------------------ (2,895) 7,460 11,477 ------------------- ------------------- ------------------ ---- 34,548 97,680 (7,765) (18,853) (144,833) ------------------- ------------------- ------------------ (7,765) 15,695 (47,153) ------------------- ------------------- ------------------ (321,113) (377,301) (59,946) ------------------- ------------------- ------------------ $ (331,773) $ (354,146) $ (95,622) =================== =================== ================== Small Cap Core Strategies Small Cap -------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ (2,895) $ (1,107) $ 7,460 $ ---- $ 11,477 $ 3,367 (7,765) 13,333 15,695 ---- (47,153) 116,065 (321,113) (4,164) (377,301) ---- (59,946) (162,265) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (331,773) 8,062 (354,146) ---- (95,622) (42,833) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 50 ---- 80,938 ---- 2,014 1,727 757,986 146,067 1,172,071 ---- (831,761) (147,026) (806) (37,787) (39,586) ---- (19,853) (55,590) (75) (50) (1,597) ---- (131) (230) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 757,155 108,230 1,211,826 ---- (849,731) (201,119) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 425,382 116,292 857,680 ---- (945,353) (243,952) 232,714 116,422 ---- ---- 1,035,175 1,279,127 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 658,096 $ 232,714 $ 857,680 $ ---- $ 89,822 $ 1,035,175 =================== ================== =================== ================== ================== ===================
FS-11 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
Scudder ---------------------------------------- Small Mid Value ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ ---- Mortality and expense risk charge (2,320) ------------------ Net investment income(loss) (2,320) ------------------ Realized gain(loss) on investments: Net realized gain distributions ---- Net realized gain(loss) on sale of fund shares (94,141) ------------------ Net realized gain(loss) (94,141) ------------------ Change in unrealized appreciation/depreciation (159,819) ------------------ Net increase(decrease) in net assets resulting from operations $ (256,280) ================== Small Mid Value ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ (2,320) $ ---- Net realized gain(loss) (94,141) ---- Net change in unrealized appreciation/depreciation (159,819) ---- ------------------ ------------------ Net increase(decrease) in net assets resulting from operations (256,280) ---- ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners 74,077 ---- Subaccounts transfers (including fixed account), net 1,156,850 ---- Transfers for policyowner benefits and terminations (32,041) ---- Policyowner maintenance charges (823) ---- ------------------ ------------------ Net increase(decrease) from policyowner transactions 1,198,063 ---- ------------------ ------------------ Total increase(decrease) in net assets 941,783 ---- Net assets at beginning of period ---- ---- ------------------ ------------------ Net assets at end of period $ 941,783 $ ---- ================== ==================
The accompanying notes are an integral part of these financial statements. FS-12
Scudder Fidelity ----------------------------------------------------------------------------- -------------------------------------- Thematic HealthCare Overseas IC ------------------- ------------------- ------------------ 2008 2008 2008 ------------------- ------------------- ------------------ $ ---- $ ---- $ 115,653 (308) (685) (25,278) ------------------- ------------------- ------------------ (308) (685) 90,375 ------------------- ------------------- ------------------ ---- ---- 564,734 (7,580) (31,553) (550,199) ------------------- ------------------- ------------------ (7,580) (31,553) 14,535 ------------------- ------------------- ------------------ (46,261) (40,448) (2,698,304) ------------------- ------------------- ------------------ $ (54,149) $ (72,686) $ (2,593,394) =================== =================== ================== Thematic HealthCare Overseas IC -------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ (308) $ ---- $ (685) $ ---- $ 90,375 $ 143,305 (7,580) ---- (31,553) ---- 14,535 418,651 (46,261) ---- (40,448) ---- (2,698,304) 165,382 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (54,149) ---- (72,686) ---- (2,593,394) 727,338 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 12,846 ---- 24,388 ---- 281,590 418,506 158,287 ---- 259,523 ---- (201,482) 563,258 (13,666) ---- (15,726) ---- (280,119) (200,427) ---- ---- (3) ---- (1,213) (1,133) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 157,467 ---- 268,182 ---- (201,224) 780,204 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 103,318 ---- 195,496 ---- (2,794,618) 1,507,542 ---- ---- ---- ---- 5,763,711 4,256,169 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 103,318 $ ---- $ 195,496 $ ---- $ 2,969,093 $ 5,763,711 =================== ================== =================== ================== ================== ===================
FS-13 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
Fidelity ---------------------------------------- Inv. Grade Bond IC ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ 280,983 Mortality and expense risk charge (41,874) ------------------ Net investment income(loss) 239,109 ------------------ Realized gain(loss) on investments: Net realized gain distributions 5,456 Net realized gain(loss) on sale of fund shares (93,916) ------------------ Net realized gain(loss) (88,460) ------------------ Change in unrealized appreciation/depreciation (469,629) ------------------ Net increase(decrease) in net assets resulting from operations $ (318,980) ================== Inv. Grade Bond IC ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ 239,109 $ 180,403 Net realized gain(loss) (88,460) 3,351 Net change in unrealized appreciation/depreciation (469,629) 40,299 ------------------ ------------------ Net increase(decrease) in net assets resulting from operations (318,980) 224,053 ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners 577,225 507,860 Subaccounts transfers (including fixed account), net 1,914,383 1,316,409 Transfers for policyowner benefits and terminations (645,662) (265,198) Policyowner maintenance charges (790) (717) ------------------ ------------------ Net increase(decrease) from policyowner transactions 1,845,156 1,558,354 ------------------ ------------------ Total increase(decrease) in net assets 1,526,176 1,782,407 Net assets at beginning of period 6,671,554 4,889,147 ------------------ ------------------ Net assets at end of period $ 8,197,730 $ 6,671,554 ================== ==================
The accompanying notes are an integral part of these financial statements. FS-14
Fidelity ------------------------------------------------------------------------------------------------------------------- Equity Income High Income IC Growth IC IC ------------------ ------------------ ------------------- 2008 2008 2008 ------------------ ------------------ ------------------- $ 60,870 $ 32,174 $ 177,823 (14,235) (21,558) (7,712) ------------------ ------------------ ------------------- 46,635 10,616 170,111 ------------------ ------------------ ------------------- 2,663 ---- ---- (280,383) (110,673) (122,993) ------------------ ------------------ ------------------- (277,720) (110,673) (122,993) ------------------ ------------------ ------------------- (1,139,938) (2,292,806) (443,764) ------------------ ------------------ ------------------- $ (1,371,023) $ (2,392,863) $ (396,646) ================== ================== =================== Equity Income IC Growth IC High Income IC -------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 46,635 $ 42,715 $ 10,616 $ 10,138 $ 170,111 $ 95,790 (277,720) 343,841 (110,673) 89,906 (122,993) 10,381 (1,139,938) (365,464) (2,292,806) 706,243 (443,764) (76,259) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (1,371,023) 21,092 (2,392,863) 806,287 (396,646) 29,912 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 149,503 359,832 304,422 341,266 188,984 290,167 (147,039) (180,033) (13,193) 875,186 692,612 34,356 (308,027) (375,995) (275,304) (245,646) (123,247) (104,531) (588) (594) (1,121) (995) (182) (164) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (306,151) (196,790) 14,804 969,811 758,167 219,828 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (1,677,174) (175,698) (2,378,059) 1,776,098 361,521 249,740 3,301,641 3,477,339 4,863,314 3,087,216 1,236,847 987,107 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 1,624,467 $ 3,301,641 $ 2,485,255 $ 4,863,314 $ 1,598,368 $ 1,236,847 =================== =================== ================== ================== ================== ===================
FS-15 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
Fidelity ---------------------------------------- High Income SC ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ 51,741 Mortality and expense risk charge (4,734) ------------------ Net investment income(loss) 47,007 ------------------ Realized gain(loss) on investments: Net realized gain distributions ---- Net realized gain(loss) on sale of fund shares (300,955) ------------------ Net realized gain(loss) (300,955) ------------------ Change in unrealized appreciation/depreciation (47,877) ------------------ Net increase(decrease) in net assets resulting from operations $ (301,825) ================== High Income SC ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ 47,007 $ 168,384 Net realized gain(loss) (300,955) 116,458 Net change in unrealized appreciation/depreciation (47,877) (105,308) ------------------ ------------------ Net increase(decrease) in net assets resulting from operations (301,825) 179,534 ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners 30,305 743 Subaccounts transfers (including fixed account), net 544,420 (1,893,350) Transfers for policyowner benefits and terminations (1,793,586) (14,972) Policyowner maintenance charges (125) (90) ------------------ ------------------ Net increase(decrease) from policyowner transactions (1,218,986) (1,907,669) ------------------ ------------------ Total increase(decrease) in net assets (1,520,811) (1,728,135) Net assets at beginning of period 2,184,110 3,912,245 ------------------ ------------------ Net assets at end of period $ 663,299 $ 2,184,110 ================== ==================
The accompanying notes are an integral part of these financial statements. FS-16
Fidelity ------------------------------------------------------------------------------------------------------------------- Contrafund Contrafund Mid Cap IC SC IC ------------------ ------------------ ------------------- 2008 2008 2008 ------------------ ------------------ ------------------- $ 178,113 $ 69,721 $ 35,821 (92,540) (35,877) (40,186) ------------------ ------------------ ------------------- 85,573 33,844 (4,365) ------------------ ------------------ ------------------- 480,122 206,215 1,158,712 (1,552,675) (590,152) (459,329) ------------------ ------------------ ------------------- (1,072,553) (383,937) 699,383 ------------------ ------------------ ------------------- (7,745,639) (2,927,965) (4,107,042) ------------------ ------------------ ------------------- $ (8,732,619) $ (3,278,058) $ (3,412,024) ================== ================== =================== Contrafund IC Contrafund SC Mid Cap IC -------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 85,573 $ 81,571 $ 33,844 $ 22,127 $ (4,365) $ 27,697 (1,072,553) 5,034,014 (383,937) 2,165,072 699,383 705,265 (7,745,639) (2,270,786) (2,927,965) (892,219) (4,107,042) 296,338 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (8,732,619) 2,844,799 (3,278,058) 1,294,980 (3,412,024) 1,029,300 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 1,316,601 933,737 24,367 6,221 552,968 683,039 303,870 2,502,318 87,887 (3,962,849) 350,327 403,492 (832,154) (1,712,425) (353,876) (1,424,050) (318,555) (309,158) (5,306) (3,575) (915) (1,010) (1,826) (1,669) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 783,011 1,720,055 (242,537) (5,381,688) 582,914 775,704 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (7,949,608) 4,564,854 (3,520,595) (4,086,708) (2,829,110) 1,805,004 20,274,232 15,709,378 8,875,080 12,961,788 8,469,044 6,664,040 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 12,324,624 $ 20,274,232 $ 5,354,485 $ 8,875,080 $ 5,639,934 $ 8,469,044 =================== ================== =================== ================== ================== ===================
FS-17 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
Fidelity ---------------------------------------- Mid Cap SC ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ 4,331 Mortality and expense risk charge (7,403) ------------------ Net investment income(loss) (3,072) ------------------ Realized gain(loss) on investments: Net realized gain distributions 223,013 Net realized gain(loss) on sale of fund shares (158,961) ------------------ Net realized gain(loss) 64,052 ------------------ Change in unrealized appreciation/depreciation (694,851) ------------------ Net increase(decrease) in net assets resulting from operations $ (633,871) ================== Mid Cap SC ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ (3,072) $ 2,767 Net realized gain(loss) 64,052 307,690 Net change in unrealized appreciation/depreciation (694,851) 9,815 ------------------ ------------------ Net increase(decrease) in net assets resulting from operations (633,871) 320,272 ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners 29,345 6,482 Subaccounts transfers (including fixed account), net (142,320) (597,881) Transfers for policyowner benefits and terminations (109,524) (137,331) Policyowner maintenance charges (386) (427) ------------------ ------------------ Net increase(decrease) from policyowner transactions (222,885) (729,157) ------------------ ------------------ Total increase(decrease) in net assets (856,756) (408,885) Net assets at beginning of period 1,649,310 2,058,195 ------------------ ------------------ Net assets at end of period $ 792,554 $ 1,649,310 ================== ==================
The accompanying notes are an integral part of these financial statements. FS-18
Fidelity AIM ------------------------------------- ----------------------------------------------------------------------------- Strategic Financial Health ------------------ ------------------ ------------------- 2008 2008 2008 ------------------ ------------------ ------------------- $ 21,999 $ 1,581 $ ---- (716) (176) (299) ------------------ ------------------ ------------------- 21,283 1,405 (299) ------------------ ------------------ ------------------- ---- 4,554 14,479 (6,425) (30,794) (831) ------------------ ------------------ ------------------- (6,425) (26,240) 13,648 ------------------ ------------------ ------------------- (57,859) 3,134 (33,017) ------------------ ------------------ ------------------- $ (43,001) $ (21,701) $ (19,668) ================== ================== =================== Strategic Financial Health -------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 21,283 $ ---- $ 1,405 $ 334 $ (299) $ (511) (6,425) ---- (26,240) 5,384 13,648 3,732 (57,859) ---- 3,134 (17,685) (33,017) 1,137 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (43,001) ---- (21,701) (11,967) (19,668) 4,358 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 29,959 ---- 180 180 ---- 123 409,091 ---- 23,828 (47,301) (1,952) (14,448) (14,907) ---- (8,072) (19,097) (888) (616) (1) ---- (28) (108) (38) (35) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 424,142 ---- 15,908 (66,326) (2,878) (14,976) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 381,141 ---- (5,793) (78,293) (22,546) (10,618) ---- ---- 39,003 117,296 77,822 88,440 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 381,141 $ ---- $ 33,210 $ 39,003 $ 55,276 $ 77,822 =================== ================== =================== ================== ================== ===================
FS-19 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
AIM ---------------------------------------- Technology ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ ---- Mortality and expense risk charge (388) ------------------ Net investment income(loss) (388) ------------------ Realized gain(loss) on investments: Net realized gain distributions ---- Net realized gain(loss) on sale of fund shares (7,953) ------------------ Net realized gain(loss) (7,953) ------------------ Change in unrealized appreciation/depreciation (31,385) ------------------ Net increase(decrease) in net assets resulting from operations $ (39,726) ================== Technology ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ (388) $ (595) Net realized gain(loss) (7,953) 11,259 Net change in unrealized appreciation/depreciation (31,385) (9,912) ------------------ ------------------ Net increase(decrease) in net assets resulting from operations (39,726) 752 ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners ---- 100 Subaccounts transfers (including fixed account), net (25,812) (25,574) Transfers for policyowner benefits and terminations ---- (1,628) Policyowner maintenance charges (44) (71) ------------------ ------------------ Net increase(decrease) from policyowner transactions (25,856) (27,173) ------------------ ------------------ Total increase(decrease) in net assets (65,582) (26,421) Net assets at beginning of period 111,378 137,799 ------------------ ------------------ Net assets at end of period $ 45,796 $ 111,378 ================== ==================
The accompanying notes are an integral part of these financial statements. FS-20
AIM Janus ---------------------------------------------------------------------------- -------------------------------------- Intl. Growth Leisure Growth ------------------ ------------------ ------------------ 2008 2008 2008 ------------------ ------------------ ------------------ $ 1,301 $ 150 $ 584 (460) (29) (443) ------------------ ------------------ ------------------- 841 121 141 ------------------ ------------------ ------------------- 3,146 2,471 ---- (3,191) (55) 1,253 ------------------ ------------------ ------------------- (45) 2,416 1,253 ------------------ ------------------ ------------------- (56,588) (7,108) (41,281) ------------------ ------------------ ------------------- $ (55,792) $ (4,571) $ (39,887) ================== ================== =================== Intl. Growth Leisure Growth -------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 841 $ ---- $ 121 $ ---- $ 141 $ 173 (45) ---- 2,416 ---- 1,253 3,133 (56,588) ---- (7,108) ---- (41,281) 10,828 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (55,792) ---- (4,571) ---- (39,887) 14,134 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 16,188 ---- 10,125 ---- ---- ---- 225,905 ---- 3,446 ---- (23,901) (16,012) (10,632) ---- ---- ---- ---- (2,342) (7) ---- ---- ---- (46) (50) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 231,454 ---- 13,571 ---- (23,947) (18,404) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 175,662 ---- 9,000 ---- (63,834) (4,270) ---- ---- ---- ---- 112,804 117,074 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 175,662 $ ---- $ 9,000 $ ---- $ 48,970 $ 112,804 =================== ================== =================== ================== ================== ===================
FS-21 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
Neuberger Berman ---------------------------------------- Balanced ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ 16,273 Mortality and expense risk charge (2,442) ------------------ Net investment income(loss) 13,831 ------------------ Realized gain(loss) on investments: Net realized gain distributions ---- Net realized gain(loss) on sale of fund shares 9,990 ------------------ Net realized gain(loss) 9,990 ------------------ Change in unrealized appreciation/depreciation (228,104) ------------------ Net increase(decrease) in net assets resulting from operations $ (204,283) ================== Balanced ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ 13,831 $ 3,327 Net realized gain(loss) 9,990 15,244 Net change in unrealized appreciation/depreciation (228,104) 51,249 ------------------ ------------------ Net increase(decrease) in net assets resulting from operations (204,283) 69,820 ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners 1,758 3,942 Subaccounts transfers (including fixed account), net (49,369) (21,569) Transfers for policyowner benefits and terminations ---- (9,725) Policyowner maintenance charges (222) (249) ------------------ ------------------ Net increase(decrease) from policyowner transactions (47,833) (27,601) ------------------ ------------------ Total increase(decrease) in net assets (252,116) 42,219 Net assets at beginning of period 561,064 518,845 ------------------ ------------------ Net assets at end of period $ 308,948 $ 561,064 ================== ==================
The accompanying notes are an integral part of these financial statements. FS-22
Neuberger Berman ------------------------------------------------------------------------------------------------------------------- Growth Bond Partners ------------------ ------------------ ------------------- 2008 2008 2008 ------------------ ------------------ ------------------- $ ---- $ 9,350 $ 7,822 (1,313) (1,185) (4,463) ------------------ ------------------ ------------------- (1,313) 8,165 3,359 ------------------ ------------------ ------------------- ---- ---- 246,821 (20,135) (1,833) (121,070) ------------------ ------------------ ------------------- (20,135) (1,833) 125,751 ------------------ ------------------ ------------------- (118,853) (36,637) (945,440) ------------------ ------------------ ------------------- $ (140,301) $ (30,305) $ (816,330) ================== ================== =================== Growth Bond Partners -------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ (1,313) $ (1,885) $ 8,165 $ 5,158 $ 3,359 $ 355 (20,135) 57,677 (1,833) 229 125,751 104,320 (118,853) (3,480) (36,637) 4,452 (945,440) (33,705) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (140,301) 52,312 (30,305) 9,839 (816,330) 70,970 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 7,884 1,590 7,722 2,072 35,787 1,025 (113,104) 187,823 (34,775) (16,534) 1,148,140 (111,393) (1,129) (59,968) ---- (3,119) (160,958) (141,352) (139) (168) (42) (40) (327) (327) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (106,488) 129,277 (27,095) (17,621) 1,022,642 (252,047) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (246,789) 181,589 (57,400) (7,782) 206,312 (181,077) 379,630 198,041 236,003 243,785 706,916 887,993 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 132,841 $ 379,630 $ 178,603 $ 236,003 $ 913,228 $ 706,916 =================== ================== =================== ================== ================== ===================
FS-23 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
Neuberger Berman ---------------------------------------- Regency ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ 147 Mortality and expense risk charge (61) ------------------ Net investment income(loss) 86 ------------------ Realized gain(loss) on investments: Net realized gain distributions 27 Net realized gain(loss) on sale of fund shares (8,704) ------------------ Net realized gain(loss) (8,677) ------------------ Change in unrealized appreciation/depreciation (4,465) ------------------ Net increase(decrease) in net assets resulting from operations $ (13,056) ================== Regency ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ 86 $ ---- Net realized gain(loss) (8,677) ---- Net change in unrealized appreciation/depreciation (4,465) ---- ------------------ ------------------ Net increase(decrease) in net assets resulting from operations (13,056) ---- ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners 32,512 ---- Subaccounts transfers (including fixed account), net 439 ---- Transfers for policyowner benefits and terminations ---- ---- Policyowner maintenance charges ---- ---- ------------------ ------------------ Net increase(decrease) from policyowner transactions 32,951 ---- ------------------ ------------------ Total increase(decrease) in net assets 19,895 ---- Net assets at beginning of period ---- ---- ------------------ ------------------ Net assets at end of period $ 19,895 $ ---- ================== ==================
The accompanying notes are an integral part of these financial statements. FS-24
Rydex ------------------------------------------------------------------------------------------------------------------- Precious Nova NASDAQ Metals ------------------ ------------------ ------------------- 2008 2008 2008 ------------------ ------------------ ------------------- $ 2,114 $ 1,509 $ ---- (2,859) (6,269) (22,482) ------------------ ------------------ ------------------- (745) (4,760) (22,482) ------------------ ------------------ ------------------- ---- ---- ---- (282,620) (581,792) (477,143) ------------------ ------------------ ------------------- (282,620) (581,792) (477,143) ------------------ ------------------ ------------------- 23,294 (116,131) (1,175,879) ------------------ ------------------ ------------------- $ (260,071) $ (702,683) $ (1,675,504) ================== ================== =================== Nova NASDAQ Precious Metals -------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ (745) $ (1,739) $ (4,760) $ (8,884) $ (22,482) $ (21,428) (282,620) 183,040 (581,792) 425,260 (477,143) 585,893 23,294 (303,635) (116,131) (304,337) (1,175,879) 34,335 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (260,071) (122,334) (702,683) 112,039 (1,675,504) 598,800 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 35,775 21,119 43,719 37,759 303,287 132,559 (34,302) (3,674,264) (106,044) (3,057,205) 733,710 753,586 (10,019) (613,886) (76,832) (556,465) (349,514) (235,460) (330) (333) (392) (304) (1,014) (850) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (8,876) (4,267,364) (139,549) (3,576,215) 686,469 649,835 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (268,947) (4,389,698) (842,232) (3,464,176) (989,035) 1,248,635 940,125 5,329,823 1,392,619 4,856,795 4,989,846 3,741,211 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 671,178 $ 940,125 $ 550,387 $ 1,392,619 $ 4,000,811 $ 4,989,846 =================== ================== =================== ================== ================== ===================
FS-25 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
Rydex ---------------------------------------- Inv. S&P 500 ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ 13,140 Mortality and expense risk charge (7,834) ------------------ Net investment income(loss) 5,306 ------------------ Realized gain(loss) on investments: Net realized gain distributions ---- Net realized gain(loss) on sale of fund shares 580,097 ------------------ Net realized gain(loss) 580,097 ------------------ Change in unrealized appreciation/depreciation (60,173) ------------------ Net increase(decrease) in net assets resulting from operations $ 525,230 ================== Inv. S&P 500 ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ 5,306 $ 17,536 Net realized gain(loss) 580,097 (114,544) Net change in unrealized appreciation/depreciation (60,173) 41,702 ------------------ ------------------ Net increase(decrease) in net assets resulting from operations 525,230 (55,306) ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners 20,437 38,145 Subaccounts transfers (including fixed account), net (135,123) 450,444 Transfers for policyowner benefits and terminations (80,209) (20,434) Policyowner maintenance charges (331) (220) ------------------ ------------------ Net increase(decrease) from policyowner transactions (195,226) 467,935 ------------------ ------------------ Total increase(decrease) in net assets 330,004 412,629 Net assets at beginning of period 877,066 464,437 ------------------ ------------------ Net assets at end of period $ 1,207,070 $ 877,066 ================== ==================
The accompanying notes are an integral part of these financial statements. FS-26
Rydex ------------------------------------------------------------------------------------------------------------------- Gov. Inverse Inv. Long Long Bond NASDAQ Bond ------------------ ------------------ ------------------- 2008 2008 2008 ------------------ ------------------ ------------------- $ 43,011 $ 861 $ 1,660 (8,639) (1,337) (1,964) ------------------ ------------------ ------------------- 34,372 (476) (304) ------------------ ------------------ ------------------- ---- ---- ---- 145,892 47,517 (93,816) ------------------ ------------------ ------------------- 145,892 47,517 (93,816) ------------------ ------------------ ------------------- 457,654 37,682 (27,418) ------------------ ------------------ ------------------- $ 637,918 $ 84,723 $ (121,538) ================== ================== =================== Gov. Long Bond Inverse NASDAQ Inv. Long Bond -------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 34,372 $ 34,876 $ (476) $ 2,528 $ (304) $ 6,052 145,892 (10,786) 47,517 (40,083) (93,816) (12,199) 457,654 58,685 37,682 (1,446) (27,418) (8,992) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 637,918 82,775 84,723 (39,001) (121,538) (15,139) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 79,418 44,053 12,175 8,656 2,038 11,778 (383,966) 432,622 233,408 66,159 76,510 (65,899) (105,664) (73,921) (4,614) (141) (5,816) (16,601) (362) (248) (53) (22) (53) (40) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (410,574) 402,506 240,916 74,652 72,679 (70,762) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 227,344 485,281 325,639 35,651 (48,859) (85,901) 1,690,171 1,204,890 96,106 60,455 148,805 234,706 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 1,917,515 $ 1,690,171 $ 421,745 $ 96,106 $ 99,946 $ 148,805 =================== ================== =================== ================== ================== ===================
FS-27 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
Rydex ---------------------------------------- Russell ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ 1,459 Mortality and expense risk charge (3,583) ------------------ Net investment income(loss) (2,124) ------------------ Realized gain(loss) on investments: Net realized gain distributions ---- Net realized gain(loss) on sale of fund shares (82,424) ------------------ Net realized gain(loss) (82,424) ------------------ Change in unrealized appreciation/depreciation (308,590) ------------------ Net increase(decrease) in net assets resulting from operations $ (393,138) ================== Russell ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ (2,124) $ 15,016 Net realized gain(loss) (82,424) 143,340 Net change in unrealized appreciation/depreciation (308,590) (209,757) ------------------ ------------------ Net increase(decrease) in net assets resulting from operations (393,138) (51,401) ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners 20,631 203,763 Subaccounts transfers (including fixed account), net 96,008 (332,901) Transfers for policyowner benefits and terminations (4,935) (48,583) Policyowner maintenance charges (196) (192) ------------------ ------------------ Net increase(decrease) from policyowner transactions 111,508 (177,913) ------------------ ------------------ Total increase(decrease) in net assets (281,630) (229,314) Net assets at beginning of period 815,994 1,045,308 ------------------ ------------------ Net assets at end of period $ 534,364 $ 815,994 ================== ==================
The accompanying notes are an integral part of these financial statements. FS-28
Rydex Third Avenue Vanguard -------------------------------------- ------------------------------------- -------------------------------------- Sector Rotation Value Money Market ------------------ ------------------ ------------------- 2008 2008 2008 ------------------ ------------------ ------------------- $ ---- $ 87,592 $ 1,619,431 (8,444) (61,931) (322,377) ------------------ ------------------ ------------------- (8,444) 25,661 1,297,054 ------------------ ------------------ ------------------- 3,867 1,744,746 ---- (172,788) (1,564,525) ---- ------------------ ------------------ ------------------- (168,921) 180,221 ---- ------------------ ------------------ ------------------- (595,624) (5,916,011) ---- ------------------ ------------------ ------------------- $ (772,989) $ (5,710,129) $ 1,297,054 ================== ================== =================== Sector Rotation Value Money Market -------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ (8,444) $ (8,417) $ 25,661 $ 276,570 $ 1,297,054 $ 2,344,934 (168,921) 232,534 180,221 1,220,471 ---- ---- (595,624) 49,538 (5,916,011) (2,276,748) ---- ---- ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (772,989) 273,655 (5,710,129) (779,707) 1,297,054 2,344,934 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 166,073 67,608 576,918 987,941 29,678,239 29,775,621 (290,518) 402,982 (549,331) 2,804,499 (11,700,424) (12,629,040) (70,671) (68,606) (606,359) (803,921) (18,471,790) (11,423,610) (241) (231) (3,589) (2,378) (8,505) (4,911) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (195,357) 401,753 (582,361) 2,986,141 (502,480) 5,718,060 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (968,346) 675,408 (6,292,490) 2,206,434 794,574 8,062,994 1,959,170 1,283,762 14,827,118 12,620,684 54,415,617 46,352,623 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 990,824 $ 1,959,170 $ 8,534,628 $ 14,827,118 $ 55,210,191 $ 54,415,617 =================== ================== =================== ================== ================== ===================
FS-29 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
Vanguard ---------------------------------------- Equity Index ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ 488,320 Mortality and expense risk charge (114,905) ------------------ Net investment income(loss) 373,415 ------------------ Realized gain(loss) on investments: Net realized gain distributions 831,953 Net realized gain(loss) on sale of fund shares (1,217,203) ------------------ Net realized gain(loss) (385,250) ------------------ Change in unrealized appreciation/depreciation (8,768,074) ------------------ Net increase(decrease) in net assets resulting from operations $ (8,779,909) ================== Equity Index ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ 373,415 $ 243,079 Net realized gain(loss) (385,250) 1,257,269 Net change in unrealized appreciation/depreciation (8,768,074) (368,692) ------------------ ------------------ Net increase(decrease) in net assets resulting from operations (8,779,909) 1,131,656 ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners 1,476,323 3,409,871 Subaccounts transfers (including fixed account), net (4,342,371) 2,631,135 Transfers for policyowner benefits and terminations (860,801) (1,335,951) Policyowner maintenance charges (5,980) (2,701) ------------------ ------------------ Net increase(decrease) from policyowner transactions (3,732,829) 4,702,354 ------------------ ------------------ Total increase(decrease) in net assets (12,512,738) 5,834,010 Net assets at beginning of period 26,625,611 20,791,601 ------------------ ------------------ Net assets at end of period $ 14,112,873 $ 26,625,611 ================== ==================
The accompanying notes are an integral part of these financial statements. FS-30
Vanguard ------------------------------------------------------------------------------------------------------------------- Total Bond REIT Index Mid-Cap ------------------ ------------------ ------------------- 2008 2008 2008 ------------------ ------------------ ------------------- $ 1,158,439 $ 376,200 $ 233,125 (146,978) (63,764) (79,609) ------------------ ------------------ ------------------- 1,011,461 312,436 153,516 ------------------ ------------------ ------------------- ---- 3,851,273 2,051,501 86,539 (1,041,088) (762,524) ------------------ ------------------ ------------------- 86,539 2,810,185 1,288,977 ------------------ ------------------ ------------------- 29,837 (8,013,851) (8,920,372) ------------------ ------------------ ------------------- $ 1,127,837 $ (4,891,230) $ (7,477,879) ================== ================== =================== Total Bond REIT Index Mid-Cap -------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 1,011,461 $ 571,814 $ 312,436 $ 252,486 $ 153,516 $ 120,192 86,539 14,948 2,810,185 1,535,418 1,288,977 2,015,938 29,837 731,361 (8,013,851) (4,590,154) (8,920,372) (1,257,615) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 1,127,837 1,318,123 (4,891,230) (2,802,250) (7,477,879) 878,515 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 3,927,920 3,491,604 746,643 1,593,768 519,230 1,479,682 (1,800,493) 4,655,283 736,167 (3,747,473) (348,812) 292,946 (1,846,418) (1,100,567) (681,545) (1,093,371) (901,651) (959,682) (7,016) (1,682) (3,838) (3,181) (3,106) (3,053) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 273,993 7,044,638 797,427 (3,250,257) (734,339) 809,893 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 1,401,830 8,362,761 (4,093,803) (6,052,507) (8,212,218) 1,688,408 24,310,003 15,947,242 12,404,118 18,456,625 18,086,175 16,397,767 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 25,711,833 $ 24,310,003 $ 8,310,315 $ 12,404,118 $ 9,873,957 $ 18,086,175 =================== ================== =================== ================== ================== ===================
FS-31 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
Vanguard ---------------------------------------- Stock Market Index ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ 135,157 Mortality and expense risk charge (49,801) ------------------ Net investment income(loss) 85,356 ------------------ Realized gain(loss) on investments: Net realized gain distributions 510,217 Net realized gain(loss) on sale of fund shares (350,212) ------------------ Net realized gain(loss) 160,005 ------------------ Change in unrealized appreciation/depreciation (4,406,404) ------------------ Net increase(decrease) in net assets resulting from operations $ (4,161,043) ================== Stock Market Index ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ 85,356 $ 44,916 Net realized gain(loss) 160,005 510,008 Net change in unrealized appreciation/depreciation (4,406,404) (171,411) ------------------ ------------------ Net increase(decrease) in net assets resulting from operations (4,161,043) 383,513 ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners 614,083 774,679 Subaccounts transfers (including fixed account), net 536,002 962,555 Transfers for policyowner benefits and terminations (533,342) (321,676) Policyowner maintenance charges (1,806) (1,639) ------------------ ------------------ Net increase(decrease) from policyowner transactions 614,937 1,413,919 ------------------ ------------------ Total increase(decrease) in net assets (3,546,106) 1,797,432 Net assets at beginning of period 10,784,409 8,986,977 ------------------ ------------------ Net assets at end of period $ 7,238,303 $ 10,784,409 ================== ==================
The accompanying notes are an integral part of these financial statements. FS-32
Vanguard ------------------------------------------------------------------------------------------------------------------- Equity High Yield Income Growth Bond ------------------ ------------------ ------------------- 2008 2008 2008 ------------------ ------------------ ------------------- $ 381,057 $ 64,372 $ 477,453 (58,040) (40,716) (31,219) ------------------ ------------------ ------------------- 323,017 23,656 446,234 ------------------ ------------------ ------------------- 958,994 ---- ---- (514,261) (255,725) (366,617) ------------------ ------------------ ------------------- 444,733 (255,725) (366,617) ------------------ ------------------ ------------------- (4,599,097) (3,003,714) (1,384,362) ------------------ ------------------ ------------------- $ (3,831,347) $ (3,235,783) $ (1,304,745) ================== ================== =================== Equity Income Growth High Yield Bond -------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 323,017 $ 241,171 $ 23,656 $ 14,539 $ 446,234 $ 373,294 444,733 1,105,540 (255,725) 235,137 (366,617) (9,979) (4,599,097) (763,716) (3,003,714) 533,282 (1,384,362) (296,786) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (3,831,347) 582,995 (3,235,783) 782,958 (1,304,745) 66,529 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 349,175 60,347 641,543 918,252 919,249 651,771 544,143 2,430,502 (1,897,847) 492,520 (729,633) 230,875 (429,781) (603,383) (472,790) (882,103) (588,892) (590,661) (1,554) (1,449) (2,012) (1,929) (2,684) (961) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 461,983 1,886,017 (1,731,106) 526,740 (401,960) 291,024 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (3,369,364) 2,469,012 (4,966,889) 1,309,698 (1,706,705) 357,553 12,683,561 10,214,549 9,452,696 8,142,998 6,099,866 5,742,313 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 9,314,197 $ 12,683,561 $ 4,485,807 $ 9,452,696 $ 4,393,161 $ 6,099,866 =================== ================== =================== ================== ================== ===================
FS-33 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
Vanguard ---------------------------------------- Balanced ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ 322,198 Mortality and expense risk charge (51,932) ------------------ Net investment income(loss) 270,266 ------------------ Realized gain(loss) on investments: Net realized gain distributions 437,987 Net realized gain(loss) on sale of fund shares (97,096) ------------------ Net realized gain(loss) 340,891 ------------------ Change in unrealized appreciation/depreciation (3,022,307) ------------------ Net increase(decrease) in net assets resulting from operations $ (2,411,150) ================== Balanced ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ 270,266 $ 230,884 Net realized gain(loss) 340,891 633,687 Net change in unrealized appreciation/depreciation (3,022,307) (73,927) ------------------ ------------------ Net increase(decrease) in net assets resulting from operations (2,411,150) 790,644 ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners 863,256 1,838,065 Subaccounts transfers (including fixed account), net (174,534) (840,763) Transfers for policyowner benefits and terminations (869,370) (1,074,553) Policyowner maintenance charges (1,916) (1,766) ------------------ ------------------ Net increase(decrease) from policyowner transactions (182,564) (79,017) ------------------ ------------------ Total increase(decrease) in net assets (2,593,714) 711,627 Net assets at beginning of period 10,756,303 10,044,676 ------------------ ------------------ Net assets at end of period $ 8,162,589 $ 10,756,303 ================== ==================
The accompanying notes are an integral part of these financial statements. FS-34
Vanguard ------------------------------------------------------------------------------------------------------------------- Small Company International Diversified Growth ------------------ ------------------ ------------------- 2008 2008 2008 ------------------ ------------------ ------------------- $ 839,693 $ 465,172 $ 62,467 (180,333) (90,423) (51,651) ------------------ ------------------ ------------------- 659,360 374,749 10,816 ------------------ ------------------ ------------------- 2,947,493 978,053 974,492 (1,085,515) (827,473) (704,320) ------------------ ------------------ ------------------- 1,861,978 150,580 270,172 ------------------ ------------------ ------------------- (21,134,873) (7,626,163) (4,947,639) ------------------ ------------------ ------------------- $ (18,613,535) $ (7,100,834) $ (4,666,651) ================== ================== =================== International Diversified Small Company Growth -------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 659,360 $ 397,048 $ 374,749 $ 238,999 $ 10,816 $ (6,511) 1,861,978 2,135,090 150,580 994,413 270,172 1,112,549 (21,134,873) 2,932,877 (7,626,163) (646,204) (4,947,639) (760,184) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (18,613,535) 5,465,015 (7,100,834) 587,208 (4,666,651) 345,854 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 2,165,411 3,074,987 1,341,262 1,271,045 838,083 917,784 (1,830,082) 3,823,755 1,049,963 4,307,536 (7,677) 74,311 (2,406,434) (2,255,375) (971,741) (1,032,770) (593,475) (745,257) (9,322) (5,114) (7,261) (2,690) (3,947) (2,167) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (2,080,427) 4,638,253 1,412,223 4,543,121 232,984 244,671 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (20,693,962) 10,103,268 (5,688,611) 5,130,329 (4,433,667) 590,525 41,962,849 31,859,581 19,768,594 14,638,265 11,521,567 10,931,042 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 21,268,887 $ 41,962,849 $ 14,079,983 $ 19,768,594 $ 7,087,900 $ 11,521,567 =================== ================== =================== ================== ================== ===================
FS-35 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
Wells Fargo ---------------------------------------- Discovery ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ ---- Mortality and expense risk charge (1,844) ------------------ Net investment income(loss) (1,844) ------------------ Realized gain(loss) on investments: Net realized gain distributions ---- Net realized gain(loss) on sale of fund shares 3,752 ------------------ Net realized gain(loss) 3,752 ------------------ Change in unrealized appreciation/depreciation (193,606) ------------------ Net increase(decrease) in net assets resulting from operations $ (191,698) ================== Discovery ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ (1,844) $ (1,947) Net realized gain(loss) 3,752 54,726 Net change in unrealized appreciation/depreciation (193,606) 11,486 ------------------ ------------------ Net increase(decrease) in net assets resulting from operations (191,698) 64,265 ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners 2,072 2,391 Subaccounts transfers (including fixed account), net 40,102 (20,055) Transfers for policyowner benefits and terminations (900) (1,099) Policyowner maintenance charges (200) (193) ------------------ ------------------ Net increase(decrease) from policyowner transactions 41,074 (18,956) ------------------ ------------------ Total increase(decrease) in net assets (150,624) 45,309 Net assets at beginning of period 375,675 330,366 ------------------ ------------------ Net assets at end of period $ 225,051 $ 375,675 ================== ==================
The accompanying notes are an integral part of these financial statements. FS-36
Wells Fargo ProFunds -------------------------------------- ---------------------------------------------------------------------------- Opportunity Bull Europe ------------------ ------------------ ------------------- 2008 2008 2008 ------------------ ------------------ ------------------- $ 10,310 $ ---- $ 3,146 (3,054) (8,452) (1,775) ------------------ ------------------ ------------------- 7,256 (8,452) 1,371 ------------------ ------------------ ------------------- 121,696 37,679 22,033 (32,620) (559,240) (164,931) ------------------ ------------------ ------------------- 89,076 (521,561) (142,898) ------------------ ------------------ ------------------- (346,464) 4,161 (12,718) ------------------ ------------------ ------------------- $ (250,132) $ (525,852) $ (154,245) ================== ================== =================== Opportunity Bull Europe -------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 7,256 $ 347 $ (8,452) $ (3,480) $ 1,371 $ 2,267 89,076 95,561 (521,561) 41,408 (142,898) 102,609 (346,464) (58,866) 4,161 (39,483) (12,718) (59,272) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (250,132) 37,042 (525,852) (1,555) (154,245) 45,604 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 5,940 8,953 3,460 3,175 467 27,078 (69,123) 34,214 1,658,707 (707,622) (952,250) 308,373 (57,280) (50) (654,520) (50,727) (105,324) (133,526) (226) (239) ---- ---- ---- ---- ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (120,689) 42,878 1,007,647 (755,174) (1,057,107) 201,925 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (370,821) 79,920 481,795 (756,729) (1,211,352) 247,529 700,202 620,282 697,200 1,453,929 1,238,891 991,362 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 329,381 $ 700,202 $ 1,178,995 $ 697,200 $ 27,539 $ 1,238,891 =================== ================== =================== ================== ================== ===================
FS-37 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
ProFunds ---------------------------------------- Mid-Cap ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ ---- Mortality and expense risk charge (750) ------------------ Net investment income(loss) (750) ------------------ Realized gain(loss) on investments: Net realized gain distributions 13,739 Net realized gain(loss) on sale of fund shares (965) ------------------ Net realized gain(loss) 12,774 ------------------ Change in unrealized appreciation/depreciation (36,172) ------------------ Net increase(decrease) in net assets resulting from operations $ (24,148) ================== Mid-Cap ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ (750) $ (1,832) Net realized gain(loss) 12,774 13,294 Net change in unrealized appreciation/depreciation (36,172) (7,730) ------------------ ------------------ Net increase(decrease) in net assets resulting from operations (24,148) 3,732 ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners 3,020 16,706 Subaccounts transfers (including fixed account), net 52,204 (214,774) Transfers for policyowner benefits and terminations ---- (23,066) Policyowner maintenance charges ---- ---- ------------------ ------------------ Net increase(decrease) from policyowner transactions 55,224 (221,134) ------------------ ------------------ Total increase(decrease) in net assets 31,076 (217,402) Net assets at beginning of period 33,420 250,822 ------------------ ------------------ Net assets at end of period $ 64,496 $ 33,420 ================== ==================
The accompanying notes are an integral part of these financial statements. FS-38
ProFunds -------------------------------------------------------------------------------------------------------------------- Small-Cap NASDAQ-100 Small-Cap Value ------------------ ------------------ ------------------- 2008 2008 2008 ------------------ ------------------ ------------------- $ ---- $ 6 $ ---- (981) (306) (159) ------------------ ------------------ ------------------- (981) (300) (159) ------------------ ------------------ ------------------- ---- 214 943 (125,651) (93,102) (8,666) ------------------ ------------------ ------------------- (125,651) (92,888) (7,723) ------------------ ------------------ ------------------- 4,806 389 (1,381) ------------------ ------------------ ------------------- $ (121,826) $ (92,799) $ (9,263) ================== ================== =================== NASDAQ-100 Small-Cap Small-Cap Value -------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ (981) $ (2,781) $ (300) $ (1,299) $ (159) $ (1,277) (125,651) 67,592 (92,888) (1,729) (7,723) (11,102) 4,806 (27,681) 389 (8,979) (1,381) (8,513) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (121,826) 37,130 (92,799) (12,007) (9,263) (20,892) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- ---- 58 ---- ---- ---- 14,356 (26,558) (692,140) 91,677 (271,138) (4,397) (39,431) (124,120) (39,859) (541) (53,006) ---- (15,900) ---- ---- ---- ---- ---- ---- ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (150,678) (731,941) 91,136 (324,144) (4,397) (40,975) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (272,504) (694,811) (1,663) (336,151) (13,660) (61,867) 273,961 968,772 10,721 346,872 31,085 92,952 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 1,457 $ 273,961 $ 9,058 $ 10,721 $ 17,425 $ 31,085 =================== ================== =================== ================== ================== ===================
FS-39 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
ProFunds ---------------------------------------- Classic Dow ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ 980 Mortality and expense risk charge (1,039) ------------------ Net investment income(loss) (59) ------------------ Realized gain(loss) on investments: Net realized gain distributions 1,610 Net realized gain(loss) on sale of fund shares (115,982) ------------------ Net realized gain(loss) (114,372) ------------------ Change in unrealized appreciation/depreciation 11,673 ------------------ Net increase(decrease) in net assets resulting from operations $ (102,758) ================== Classic Dow ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ (59) $ (2,779) Net realized gain(loss) (114,372) 49,128 Net change in unrealized appreciation/depreciation 11,673 (14,611) ------------------ ------------------ Net increase(decrease) in net assets resulting from operations (102,758) 31,738 ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners ---- 22,630 Subaccounts transfers (including fixed account), net (149,614) (373,329) Transfers for policyowner benefits and terminations (8,468) (79,364) Policyowner maintenance charges ---- ---- ------------------ ------------------ Net increase(decrease) from policyowner transactions (158,082) (430,063) ------------------ ------------------ Total increase(decrease) in net assets (260,840) (398,325) Net assets at beginning of period 302,855 701,180 ------------------ ------------------ Net assets at end of period $ 42,015 $ 302,855 ================== ==================
The accompanying notes are an integral part of these financial statements. FS-40
ProFunds ------------------------------------------------------------------------------------------------------------------- Short Short Small- Bear NASDAQ Cap ------------------ ------------------ ------------------- 2008 2008 2008 ------------------ ------------------ ------------------- $ 193 $ 4,917 $ 18,746 (1,515) (1,704) (3,863) ------------------ ------------------ ------------------- (1,322) 3,213 14,883 ------------------ ------------------ ------------------- ---- ---- ---- 103,460 150,484 96,429 ------------------ ------------------ ------------------- 103,460 150,484 96,429 ------------------ ------------------ ------------------- (4,051) (9,733) (4,745) ------------------ ------------------ ------------------- $ 98,087 $ 143,964 $ 106,567 ================== ================== =================== Bear Short NASDAQ Short Small-Cap -------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ (1,322) $ 2,478 $ 3,213 $ 16,851 $ 14,883 $ (146) 103,460 (21,163) 150,484 (135,435) 96,429 (65,262) (4,051) (1,025) (9,733) 6 (4,745) 4,656 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 98,087 (19,710) 143,964 (118,578) 106,567 (60,752) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- ---- ---- ---- ---- 1,200 ---- 51,659 (106,633) 178,607 354,906 (279,814) 296,867 (71,516) (5,021) (12,564) (213,131) (132,626) (8,244) ---- ---- ---- ---- ---- ---- ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (19,857) (111,654) 166,043 141,775 (411,240) 288,623 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 78,230 (131,364) 310,007 23,197 (304,673) 227,871 21,191 152,555 166,904 143,707 304,673 76,802 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 99,421 $ 21,191 $ 476,911 $ 166,904 $ ---- $ 304,673 =================== ================== =================== ================== ================== ===================
FS-41 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
ProFunds ---------------------------------------- Short Dow ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ ---- Mortality and expense risk charge (398) ------------------ Net investment income(loss) (398) ------------------ Realized gain(loss) on investments: Net realized gain distributions ---- Net realized gain(loss) on sale of fund shares 70,279 ------------------ Net realized gain(loss) 70,279 ------------------ Change in unrealized appreciation/depreciation (78) ------------------ Net increase(decrease) in net assets resulting from operations $ 69,803 ================== Short Dow ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ (398) $ 10,998 Net realized gain(loss) 70,279 (32,405) Net change in unrealized appreciation/depreciation (78) 591 ------------------ ------------------ Net increase(decrease) in net assets resulting from operations 69,803 (20,816) ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners ---- ---- Subaccounts transfers (including fixed account), net (61,893) 59,800 Transfers for policyowner benefits and terminations (10,447) (42,580) Policyowner maintenance charges ---- ---- ------------------ ------------------ Net increase(decrease) from policyowner transactions (72,340) 17,220 ------------------ ------------------ Total increase(decrease) in net assets (2,537) (3,596) Net assets at beginning of period 2,537 6,133 ------------------ ------------------ Net assets at end of period $ ---- $ 2,537 ================== ==================
The accompanying notes are an integral part of these financial statements. FS-42
ProFunds ------------------------------------------------------------------------------------------------------------------- UltraMid UltraOTC UltraSmall ------------------ ------------------ ------------------- 2008 2008 2008 ------------------ ------------------ ------------------- $ 945 $ ---- $ 788 (1,029) (1,624) (1,335) ------------------ ------------------ ------------------- (84) (1,624) (547) ------------------ ------------------ ------------------- ---- ---- ---- (187,421) (278,120) (141,124) ------------------ ------------------ ------------------- (187,421) (278,120) (141,124) ------------------ ------------------ ------------------- 2,483 4,698 10,323 ------------------ ------------------ ------------------- $ (185,022) $ (275,046) $ (131,348) ================== ================== =================== UltraMid UltraOTC UltraSmall -------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ (84) $ (131) $ (1,624) $ (8,353) $ (547) $ 4,540 (187,421) 138,215 (278,120) 2,883 (141,124) 146,900 2,483 (26) 4,698 (8,325) 10,323 (4,105) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (185,022) 138,058 (275,046) (13,795) (131,348) 147,335 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- ---- ---- ---- 40,106 ---- ---- 207,580 (119,706) (240,941) 1,319,091 6,191 88,607 (4,983) (14,018) (52,102) (680,762) (36,817) (32,778) ---- ---- ---- ---- ---- ---- ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 202,597 (133,724) (293,043) 678,435 (30,626) 55,829 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 17,575 4,334 (568,089) 664,640 (161,974) 203,164 6,154 1,820 753,499 88,859 252,043 48,879 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 23,729 $ 6,154 $ 185,410 $ 753,499 $ 90,069 $ 252,043 =================== ================== =================== ================== ================== ===================
FS-43 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
ProFunds ---------------------------------------- UltraBull ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ 1,244 Mortality and expense risk charge (2,744) ------------------ Net investment income(loss) (1,500) ------------------ Realized gain(loss) on investments: Net realized gain distributions ---- Net realized gain(loss) on sale of fund shares (298,279) ------------------ Net realized gain(loss) (298,279) ------------------ Change in unrealized appreciation/depreciation 29,181 ------------------ Net increase(decrease) in net assets resulting from operations $ (270,598) ================== UltraBull ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ (1,500) $ (450) Net realized gain(loss) (298,279) (281,109) Net change in unrealized appreciation/depreciation 29,181 (21,852) ------------------ ------------------ Net increase(decrease) in net assets resulting from operations (270,598) (303,411) ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners ---- 40,000 Subaccounts transfers (including fixed account), net (1,277,818) 2,048,629 Transfers for policyowner benefits and terminations (166,917) (130,632) Policyowner maintenance charges ---- ---- ------------------ ------------------ Net increase(decrease) from policyowner transactions (1,444,735) 1,957,997 ------------------ ------------------ Total increase(decrease) in net assets (1,715,333) 1,654,586 Net assets at beginning of period 1,804,875 150,289 ------------------ ------------------ Net assets at end of period $ 89,542 $ 1,804,875 ================== ==================
The accompanying notes are an integral part of these financial statements. FS-44
ProFunds ------------------------------------------------------------------------------------------------------------------- U.S. Gov. Plus Opportunity Oil & Gas ------------------ ------------------ ------------------- 2008 2008 2008 ------------------ ------------------ ------------------- $ 10,270 $ ---- $ ---- (5,039) (2,223) (4,489) ------------------ ------------------ ------------------- 5,231 (2,223) (4,489) ------------------ ------------------ ------------------- ---- ---- 33,749 89,349 6,947 (148,462) ------------------ ------------------ ------------------- 89,349 6,947 (114,713) ------------------ ------------------ ------------------- (22,481) 495 (53,563) ------------------ ------------------ ------------------- $ 72,099 $ 5,219 $ (172,765) ================== ================== =================== U.S. Gov. Plus Opportunity Oil & Gas -------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 5,231 $ 17,095 $ (2,223) $ (2,881) $ (4,489) $ (4,333) 89,349 45,257 6,947 (26,355) (114,713) 55,255 (22,481) 42,348 495 (5,850) (53,563) 20,045 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 72,099 104,700 5,219 (35,086) (172,765) 70,967 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 247,824 28,712 ---- ---- 10,513 64,469 (1,081,344) 748,801 37,896 (107,035) 25,144 (17,631) (162,576) (59,689) (60,950) (22,297) (37,854) (110,683) ---- ---- ---- ---- ---- ---- ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (996,096) 717,824 (23,054) (129,332) (2,197) (63,845) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (923,997) 822,524 (17,835) (164,418) (174,962) 7,122 970,789 148,265 17,835 182,253 411,581 404,459 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 46,792 $ 970,789 $ ---- $ 17,835 $ 236,619 $ 411,581 =================== ================== =================== ================== ================== ===================
FS-45 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
ProFunds ---------------------------------------- Precious Metals ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ 93,697 Mortality and expense risk charge (19,178) ------------------ Net investment income(loss) 74,519 ------------------ Realized gain(loss) on investments: Net realized gain distributions 207,298 Net realized gain(loss) on sale of fund shares (1,818,838) ------------------ Net realized gain(loss) (1,611,540) ------------------ Change in unrealized appreciation/depreciation (22,411) ------------------ Net increase(decrease) in net assets resulting from operations $ (1,559,432) ================== Precious Metals ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ 74,519 $ 13,954 Net realized gain(loss) (1,611,540) 14,100 Net change in unrealized appreciation/depreciation (22,411) 51,581 ------------------ ------------------ Net increase(decrease) in net assets resulting from operations (1,559,432) 79,635 ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners 158,897 40,000 Subaccounts transfers (including fixed account), net 394,635 1,195,406 Transfers for policyowner benefits and terminations (121,045) (119,496) Policyowner maintenance charges ---- ---- ------------------ ------------------ Net increase(decrease) from policyowner transactions 432,487 1,115,910 ------------------ ------------------ Total increase(decrease) in net assets (1,126,945) 1,195,545 Net assets at beginning of period 1,634,741 439,196 ------------------ ------------------ Net assets at end of period $ 507,796 $ 1,634,741 ================== ==================
The accompanying notes are an integral part of these financial statements. FS-46
ProFunds -------------------------------------------------------------------------------------------------------------------- Real Estate High Yield Money Market ------------------ ------------------ ------------------- 2008 2008 2008 ------------------ ------------------ ------------------- $ ---- $ 3,806 $ 93,440 (168) (575) (98,208) ------------------ ------------------ ------------------- (168) 3,231 (4,768) ------------------ ------------------ ------------------- 146 ---- ---- (31,055) (3,741) ---- ------------------ ------------------ ------------------- (30,909) (3,741) ---- ------------------ ------------------ ------------------- 8,902 (2,975) ---- ------------------ ------------------ ------------------- $ (22,175) $ (3,485) $ (4,768) ================== ================== =================== Real Estate High Yield Money Market -------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ (168) $ (504) $ 3,231 $ 7,176 $ (4,768) $ 375,900 (30,909) 8,759 (3,741) (12,246) ---- ---- 8,902 (22,612) (2,975) (61) ---- ---- ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (22,175) (14,357) (3,485) (5,131) (4,768) 375,900 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- ---- 56,951 ---- 1,207 2,211,345 5,299,058 (140,021) (282,336) 118,023 (11,697) 1,392,067 (3,475,667) (42) (56) (117,976) (530) (4,945,891) (6,751,293) ---- ---- ---- ---- ---- ---- ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (140,063) (225,441) 47 (11,020) (1,342,479) (4,927,902) ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (162,238) (239,798) (3,438) (16,151) (1,347,247) (4,552,002) 169,922 409,720 24,615 40,766 11,403,574 15,955,576 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 7,684 $ 169,922 $ 21,177 $ 24,615 $ 10,056,327 $ 11,403,574 =================== ================== =================== ================== ================== ===================
FS-47 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
Pimco ---------------------------------------- Commodity ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ 436,889 Mortality and expense risk charge (53,386) ------------------ Net investment income(loss) 383,503 ------------------ Realized gain(loss) on investments: Net realized gain distributions 86,173 Net realized gain(loss) on sale of fund shares (58,234) ------------------ Net realized gain(loss) 27,939 ------------------ Change in unrealized appreciation/depreciation (4,842,214) ------------------ Net increase(decrease) in net assets resulting from operations $ (4,430,772) ================== Commodity ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ 383,503 $ 302,508 Net realized gain(loss) 27,939 907 Net change in unrealized appreciation/depreciation (4,842,214) 1,273,763 ------------------ ------------------ Net increase(decrease) in net assets resulting from operations (4,430,772) 1,577,178 ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners 563,619 638,940 Subaccounts transfers (including fixed account), net 673,385 109,775 Transfers for policyowner benefits and terminations (332,665) (122,002) Policyowner maintenance charges (869) (498) ------------------ ------------------ Net increase(decrease) from policyowner transactions 903,470 626,215 ------------------ ------------------ Total increase(decrease) in net assets (3,527,302) 2,203,393 Net assets at beginning of period 8,917,987 6,714,594 ------------------ ------------------ Net assets at end of period $ 5,390,685 $ 8,917,987 ================== ==================
The accompanying notes are an integral part of these financial statements. FS-48
American Century Franklin Templeton ---------------------------------------------------------------------------- -------------------------------------- Mid Cap International Global Inc. ------------------ ------------------ ------------------- 2008 2008 2008 ------------------ ------------------ ------------------- $ ---- $ ---- $ 15,137 (1,147) (1,488) (4,959) ------------------ ------------------ ------------------- (1,147) (1,488) 10,178 ------------------ ------------------ ------------------- ---- ---- ---- (13,703) (36,249) (5,630) ------------------ ------------------ ------------------- (13,703) (36,249) (5,630) ------------------ ------------------ ------------------- (63,504) (250,617) 61,212 ------------------ ------------------ ------------------- $ (78,354) $ (288,354) $ 65,760 ================== ================== =================== Mid Cap International Global Inc. -------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ (1,147) $ ---- $ (1,488) $ ---- $ 10,178 $ ---- (13,703) ---- (36,249) ---- (5,630) ---- (63,504) ---- (250,617) ---- 61,212 ---- ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (78,354) ---- (288,354) ---- 65,760 ---- ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 29,583 ---- 16,874 ---- 142,822 ---- 535,230 ---- 721,549 ---- 1,987,323 ---- (15,913) ---- (15,641) ---- (70,953) ---- (600) ---- (2) ---- (997) ---- ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 548,300 ---- 722,780 ---- 2,058,195 ---- ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 469,946 ---- 434,426 ---- 2,123,955 ---- ---- ---- ---- ---- ---- ---- ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 469,946 $ ---- $ 434,426 $ ---- $ 2,123,955 $ ---- =================== ================== =================== ================== ================== ===================
FS-49 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
MFS ---------------------------------------- Utilities IC ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ ---- Mortality and expense risk charge (824) ------------------ Net investment income(loss) (824) ------------------ Realized gain(loss) on investments: Net realized gain distributions ---- Net realized gain(loss) on sale of fund shares (39,024) ------------------ Net realized gain(loss) (39,024) ------------------ Change in unrealized appreciation/depreciation (93,397) ------------------ Net increase(decrease) in net assets resulting from operations $ (133,245) ================== Utilities IC ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ (824) $ ---- Net realized gain(loss) (39,024) ---- Net change in unrealized appreciation/depreciation (93,397) ---- ------------------ ------------------ Net increase(decrease) in net assets resulting from operations (133,245) ---- ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners 20,776 ---- Subaccounts transfers (including fixed account), net 302,326 ---- Transfers for policyowner benefits and terminations (5,359) ---- Policyowner maintenance charges (18) ---- ------------------ ------------------ Net increase(decrease) from policyowner transactions 317,725 ---- ------------------ ------------------ Total increase(decrease) in net assets 184,480 ---- Net assets at beginning of period ---- ---- ------------------ ------------------ Net assets at end of period $ 184,480 $ ---- ================== ==================
The accompanying notes are an integral part of these financial statements. FS-50
MFS Summit -------------------------------------- ---------------------------------------------------------------------------- Research Natural Res Zenith ------------------ ------------------ ------------------- 2008 2008 2008 ------------------ ------------------ ------------------- $ ---- $ 716 $ 525 (90) (1,736) (29) ------------------ ------------------ ------------------ (90) (1,020) 496 ------------------ ------------------ ------------------ ---- ---- 239 (2,569) (104,830) ---- ------------------ ------------------ ------------------ (2,569) (104,830) 239 ------------------ ------------------ ------------------ (8,650) (233,653) 2,118 ------------------ ------------------ ------------------ $ (11,309) $ (339,503) $ 2,853 ================== ================== ================== Research Natural Res Zenith -------------------------------------- -------------------------------------- -------------------------------------- 2008 2007 2008 2007 2008 2007 ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ (90) $ ---- $ (1,020) $ ---- $ 496 $ ---- (2,569) ---- (104,830) ---- 239 ---- (8,650) ---- (233,653) ---- 2,118 ---- ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- (11,309) ---- (339,503) ---- 2,853 ---- ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 36,202 ---- 64,748 ---- ---- ---- 28,833 ---- 628,510 ---- 101,079 ---- ---- ---- (16,377) ---- ---- ---- (1) ---- (56) ---- (2) ---- ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 65,034 ---- 676,825 ---- 101,077 ---- ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- 53,725 ---- 337,322 ---- 103,930 ---- ---- ---- ---- ---- ---- ---- ------------------- ------------------ ------------------- ------------------ ------------------ ------------------- $ 53,725 $ ---- $ 337,322 $ ---- $ 103,930 $ ---- =================== ================== =================== ================== ================== ===================
FS-51 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA FOR THE PERIODS ENDED DECEMBER 31
Summit ---------------------------------------- S&P 500 ------------------ STATEMENTS OF OPERATIONS 2008 ------------------------ ------------------ Investment income: Dividend distributions received $ 2,799 Mortality and expense risk charge (47) ------------------ Net investment income(loss) 2,752 ------------------ Realized gain(loss) on investments: Net realized gain distributions 12 Net realized gain(loss) on sale of fund shares ---- ------------------ Net realized gain(loss) 12 ------------------ Change in unrealized appreciation/depreciation 1,375 ------------------ Net increase(decrease) in net assets resulting from operations $ 4,139 ================== S&P 500 ---------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 2008 2007 ----------------------------------- ------------------ ------------------ Increase(decrease) in net assets from operations: Net investment income(loss) $ 2,752 $ ---- Net realized gain(loss) 12 ---- Net change in unrealized appreciation/depreciation 1,375 ---- ------------------ ------------------ Net increase(decrease) in net assets resulting from operations 4,139 ---- ------------------ ------------------ Net increase(decrease) from policyowner transactions: Payments received from policyowners 125 ---- Subaccounts transfers (including fixed account), net 168,937 ---- Transfers for policyowner benefits and terminations ---- ---- Policyowner maintenance charges (4) ---- ------------------ ------------------ Net increase(decrease) from policyowner transactions 169,058 ---- ------------------ ------------------ Total increase(decrease) in net assets 173,197 ---- Net assets at beginning of period ---- ---- ------------------ ------------------ Net assets at end of period $ 173,197 $ ---- ================== ==================
The accompanying notes are an integral part of these financial statements. FS-52
T. Rowe Morgan Stanley -------------------------------------- ------------------------------------- Emerging Blue Chip Markets ------------------ ------------------ 2008 2008 ------------------ ------------------ $ 4,755 $ ---- (8,858) (2,674) ------------------ ------------------ (4,103) (2,674) ------------------ ------------------ ---- 173,580 (166,620) (62,192) ------------------ ------------------ (166,620) 111,388 ------------------ ------------------ (1,225,658) (698,881) ------------------ ------------------ $ (1,396,381) $ (590,167) ================== ================== Blue Chip Emerging Markets -------------------------------------- ------------------------------------- 2008 2007 2008 2007 ------------------ ------------------- ------------------ ------------------ $ (4,103) $ ---- $ (2,674) $ ---- (166,620) ---- 111,388 ---- (1,225,658) ---- (698,881) ---- ------------------ ------------------- ------------------ ------------------ (1,396,381) ---- (590,167) ---- ------------------ ------------------- ------------------ ------------------ 243,097 ---- 112,636 ---- 4,610,847 ---- 1,471,130 ---- (160,642) ---- (59,886) ---- (2,612) ---- (981) ---- ------------------ ------------------- ------------------ ------------------ 4,690,690 ---- 1,522,899 ---- ------------------ ------------------- ------------------ ------------------ 3,294,309 ---- 932,732 ---- ---- ---- ---- ---- ------------------ ------------------- ------------------ ------------------ $ 3,294,309 $ ---- $ 932,732 $ ---- ================== =================== ================== ==================
FS-53 AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA NOTES TO FINANCIAL STATEMENTS FOR THE PERIODS ENDED DECEMBER 31, 2008 AND 2007 1. ORGANIZATION Ameritas Life Insurance Corp. Separate Account LLVA (the "Account") was established on October 26, 1995, under Nebraska law. The assets of the Account are held by Ameritas Life Insurance Corp. (ALIC) (an indirect wholly owned subsidiary of UNIFI Mutual Holding Company), are segregated from all of ALIC's other assets and are used only to support the variable annuity products issued by ALIC. Management believes these financial statements should be read in conjunction with the policyowner statements and policy and fund prospectuses. The Account is registered under the Investment Company Act of 1940, as amended, as a unit investment trust. The Account is made up of variable investment options called subaccounts for which accumulation units are separately maintained. Each subaccount corresponds to a single underlying non-publicly traded portfolio issued through a series fund. At December 31, 2008 there are ninety-one subaccounts available within the Account listed as follows:
Calvert Asset Management Company, Inc. Fidelity Management & Research Company, continued (Advisor) (See Note 3) Fidelity, continued Calvert (Fund) *Growth IC *Balanced (Subaccount) (Commenced November 17, 2005) *International Equity *High Income IC *Mid Cap (Commenced August 29, 2005) *Social Equity *High Income SC (Commenced August 15, 2005) *Contrafund IC (Commenced August 18, 2005) Ameritas *Contrafund SC *MidCap *Mid Cap IC *Small Cap (Commenced June 30, 2005) *Core Strategies *Mid Cap SC (Commenced April 30, 2008) *Strategic (Commenced May 6, 2008) Deutsche Investment Management Americas Inc. Invesco AIM Advisors, Inc. Scudder AIM *Small Cap *Financial *Small Mid Value *Health (Commenced April 30, 2008) *Technology *Thematic *Intl. Growth (Commenced May 16, 2008) (Commenced May 6, 2008) *HealthCare *Leisure (Commenced June 20, 2008) (Commenced June 23, 2008) Fidelity Management & Research Company Janus Capital Management LLC Fidelity Janus *Overseas IC *Growth (Commenced December 28, 2005) *Inv. Grade Bond IC *Equity Income IC (Commenced October 10, 2005) FS-54 1. ORGANIZATION, continued Neuberger Berman Management Inc. Wellington Management Company, LLP Neuberger Berman Vanguard *Balanced *High Yield Bond *Growth *Balanced *Bond (formerly Lehman Brothers Short Duration (Commenced October 28, 2005) Bond Portfolio (Limited Maturity Bond)) *Partners Schroder Investment Management North America, Inc. *Regency and Baillie Gifford Overseas Ltd. (Commenced July 29, 2008) Vanguard *International Rydex Investments Rydex Barrow, Hanley, Mewhinney & Strauss, Inc. *Nova Vanguard *NASDAQ (formerly OTC Portfolio (OTC)) *Diversified *Precious Metals *Inv. S&P 500 Granahan Investment Management, Inc. and Grantham, *Gov. Long Bond Mayo, Van Otterloo & Co. LLC *Inverse NASDAQ (formerly Inverse OTC Vanguard Strategy Portfolio (Inverse OTC)) *Small Company Growth (Commenced August 22, 2005) *Inv. Long Bond Wells Fargo Funds Management, LLC (Commenced January 30, 2006) Wells Fargo *Russell *Discovery (Commenced August 8, 2005) (Commenced April 8, 2005) *Sector Rotation *Opportunity (Commenced October 5, 2005) ProFunds Advisors LLC Third Avenue Management LLC ProFunds Third Avenue *Bull *Value (Commenced July 6, 2005) *Europe The Vanguard Group. Inc. (Commenced September 5, 2005) Vanguard *Mid-Cap *Money Market (Commenced June 30, 2005) *Equity Index *NASDAQ-100 (formerly OTC) *Total Bond (Commenced July 6, 2005) *REIT Index *Small-Cap *Mid-Cap (Commenced July 6, 2005) *Stock Market Index *Small-Cap Value (Commenced November 3, 2005) (Commenced September 30, 2005) *Classic Dow The Vanguard Group. Inc. and Wellington Management (Commenced May 5, 2006) Company, LLP *Bear Vanguard (Commenced June 24, 2005) *Equity Income *Short NASDAQ (formerly Short OTC) (Commenced June 30, 2005) AllianceBernstein L.P. and William Blair & Company, *Short Small-Cap L.L.C. (Commenced August 8, 2005) Vanguard *Short Dow *Growth (Commenced May 12, 2006) *UltraMid (Commenced September 6, 2005) FS-55 1. ORGANIZATION, continued ProFunds Advisors LLC, continued American Century Global Investment Management, Inc. ProFunds, continued American Century *UltraOTC *International (Commenced June 24, 2005) (Commenced May 16, 2008) *UltraSmall (Commenced September 6, 2005) Templeton Global Advisors Limited *UltraBull Franklin Templeton (Commenced June 24, 2005) *Global Inc. *U.S. Gov. Plus (Commenced April 30, 2008) (Commenced August 24, 2005) *Opportunity Massachusetts Financial Service Company (Commenced August 8, 2005) MFS *Oil & Gas *Utilities IC (Commenced July 5, 2005) (Commenced April 30, 2008) *Precious Metals *Research (Commenced September 15, 2005) (Commenced May 19, 2008) *Real Estate (Commenced September 23, 2005) Calvert Asset Management Company, Inc. *High Yield (See Note 3) (Commenced October 28, 2005) Summit *Money Market *Natural Res (Commenced June 9, 2005) (Commenced May 12, 2008) *Zenith Pacific Investment Management Company LLC (Commenced December 12, 2008) Pimco *S&P 500 *Commodity (Commenced December 12, 2008) (Commenced December 14, 2005) T. Rowe Prices Associates, Inc. American Century Investment Management, Inc. T. Rowe American Century *Blue Chip *Mid Cap (Commenced April 30, 2008) (Commenced April 30, 2008) Morgan Stanley Investment Management Inc., Morgan Stanley *Emerging Markets (Commenced April 30, 2008)
2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING The financial statements included herein have been prepared in accordance with accounting principles accepted in the United States of America ("GAAP") for variable annuity separate accounts registered as unit investment trusts. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. FS-56 2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued INVESTMENTS The assets of the subaccounts are carried at the net asset value of the underlying portfolios, adjusted for the accrual of dividends. The value of the policyowners' units corresponds to the investment in the underlying subaccounts. The availability of investment portfolio and subaccount options may vary between products. Share transactions and security transactions are accounted for on a trade date basis. Income from dividends and gains from realized gain distributions are recorded on the ex-distribution date. Realized gains and losses on the sales of investments represent the difference between the proceeds from sales of investments by the subaccounts and the cost of such shares, which is determined on a weighted average cost basis. ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS Effective January 1, 2008, the Account adopted Financial Accounting Standards Board (FASB) Statement No. 157, Fair Value Measurements (FAS 157). FAS 157 establishes a framework for measuring fair value and expands disclosures about fair value measurements. FAS 157 defines fair value as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. The adoption of FAS 157 had no impact on any subaccounts' financial position or results of operations. FAS 157 applies to all assets and liabilities that are measured and reported on a fair value basis and enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The statement requires that each asset and liability carried at fair value be classified into one of the following categories: o Level 1 - Quoted market prices in active markets for identical assets or liabilities. o Level 2 - Observable market based inputs or unobservable inputs that are corroborated by market data. o Level 3 - Unobservable inputs that are not corroborated by market data. Each subaccount invests in shares of open-ended mutual funds, which calculate a daily net asset value based on the value of the underlying securities in its portfolios. As a result, and as required by law, shares of open end mutual funds are purchased and redeemed at their quoted daily net asset values as reported by the fund companies at the close of each business day. On that basis, the fair value measurements of all shares held by the Account are reported as Level 1 assets. FEDERAL AND STATE TAXES The operations of the Account form a part of and are taxed with the operations of ALIC. ALIC is taxed as a life insurance company under Subchapter L of the Internal Revenue Code. Under existing federal income tax law, separate account investment income and capital gains are not taxed to the extent they are applied to increase reserves under a contract issued in connection with the Account. Investment income and realized capital gains and losses on assets of the Account are automatically applied to increase or decrease reserves under the contract. Accordingly, no provision for federal income taxes or unrecognized tax benefits are reflected in these financial statements. FS-57 3. RELATED PARTIES Affiliates of ALIC provided management, administrative and investment advisory services for the Ameritas, Calvert and Summit subaccounts for a fee. These fees are reflected in the daily value of the underlying portfolio share price. The fee is computed separately for each underlying portfolio on daily average net assets, at an annual rate, as of December 31, 2008 and 2007, as follows: Investment Advisory Management/ Fee Administrative Fee ---------------------- ----------------------- Ameritas: MidCap 0.00800 0.00050 Small Cap 0.00850 0.00050 Core Strategies 0.00750 0.00050 Calvert: Balanced 0.00425 0.00275 International Equity 0.00750 0.00350 Mid Cap 0.00650 0.00250 Social Equity 0.00500 0.00200 Summit: Natural Res 0.00550 0.00100 Zenith 0.00640 0.00100 S&P 500 0.00250 0.00100 On December 12, 2008, Calvert Asset Management Company (CAMCO) consummated a transaction with Summit Investment Partners, Inc., an affiliated entity, whereby CAMCO became the investment advisor to the Summit Mutual Funds, Inc. FS-58 4. PURCHASES AND SALES OF INVESTMENTS The cost of purchases and proceeds from sales of investments in the subaccounts for the periods ended December 31, 2008 were as follows:
Purchases Sales ---------------------- ----------------------- Calvert: Balanced $ 374,863 $ 432,196 International Equity 626,880 649,232 Mid Cap 29,823 177,506 Social Equity 128,396 178,018 Ameritas: MidCap 201,852 427,943 Small Cap 793,764 39,503 Core Strategies 1,301,169 47,335 Scudder: Small Cap 270,426 1,011,000 Small Mid Value 1,457,370 261,628 Thematic 190,429 33,271 HealthCare 502,404 234,906 Fidelity: Overseas IC 1,971,006 1,517,121 Inv. Grade Bond IC 5,250,567 3,160,847 Equity Income IC 419,623 676,476 Growth IC 1,197,276 1,171,857 High Income IC 1,568,849 640,570 High Income SC 3,080,569 4,252,548 Contrafund IC 5,541,385 4,192,679 Contrafund SC 2,064,117 2,066,594 Mid Cap IC 3,315,375 1,578,114 Mid Cap SC 669,580 672,525 Strategic 510,282 64,856 AIM: Financial 142,491 120,624 Health 71,164 59,860 Technology 62,475 88,718 Intl. Growth 245,597 10,156 Leisure 16,281 118 Janus: Growth 581 24,386 Neuberger Berman: Balanced 24,760 58,763 Growth 37,855 145,656 Bond 17,390 36,320 Partners 1,902,136 629,313 Regency 66,569 33,504 FS-59 4. PURCHASES AND SALES OF INVESTMENTS, continued Purchases Sales ----------------------- ---------------------- Rydex: Nova $ 3,354,966 $ 3,364,587 NASDAQ 3,884,812 4,029,120 Precious Metals 10,605,379 9,941,393 Inv. S&P 500 11,509,174 11,699,093 Gov. Long Bond 1,466,727 1,843,032 Inverse NASDAQ 1,074,712 834,272 Inv. Long Bond 753,425 681,050 Russell 544,674 435,289 Sector Rotation 831,518 1,031,452 Third Avenue: Value 5,383,352 4,195,306 Vanguard: Money Market 51,198,241 50,403,667 Equity Index 4,830,436 7,357,897 Total Bond 10,109,536 8,824,082 REIT Index 6,920,892 1,959,756 Mid-Cap 3,756,223 2,285,545 Stock Market Index 2,895,017 1,684,507 Equity Income 4,487,199 2,743,205 Growth 1,277,136 2,984,586 High Yield Bond 2,655,056 2,610,782 Balanced 3,049,874 2,524,185 International 8,142,083 6,615,657 Diversified 7,649,212 4,884,188 Small Company Growth 3,474,555 2,256,262 Wells Fargo: Discovery 127,185 87,955 Opportunity 151,277 143,014 ProFunds: Bull 6,655,017 5,618,143 Europe 1,217,402 2,251,106 Mid-Cap 248,461 180,247 NASDAQ-100 2,637,971 2,789,630 Small-Cap 3,309,773 3,218,723 Small-Cap Value 36,781 40,394 Classic Dow 13,235,011 13,391,542 Bear 19,523,671 19,544,851 Short NASDAQ 10,227,429 10,058,173 Short Small-Cap 8,396,814 8,793,170 Short Dow 7,630,284 7,703,022 UltraMid 9,028,089 8,825,576 UltraOTC 14,546,525 14,841,192 UltraSmall 9,890,690 9,921,862 FS-60 4. PURCHASES AND SALES OF INVESTMENTS, continued Purchases Sales ----------------------- ---------------------- ProFunds, continued: UltraBull $ 12,160,258 $ 13,606,493 U.S. Gov. Plus 12,222,234 13,213,099 Opportunity 17,072,652 17,097,929 Oil & Gas 1,448,796 1,421,733 Precious Metals 5,186,220 4,471,915 Real Estate 33,532 173,617 High Yield 274,763 271,485 Money Market 103,356,147 104,703,394 Pimco: Commodity 3,283,938 1,910,793 American Century: Mid Cap 632,543 85,390 International 779,234 57,942 Franklin Templeton: Global Inc. 2,319,916 251,542 MFS: Utilities IC 516,750 199,849 Research 82,379 17,435 Summit: Natural Res 1,122,395 446,590 Zenith 101,837 25 S&P 500 171,865 43 T. Rowe: Blue Chip 5,024,551 337,964 Morgan Stanley: Emerging Markets 1,970,346 276,540
5. FINANCIAL HIGHLIGHTS The unit value, units, net assets, investment income ratio (Inv. Income Ratio), expense ratio and total return (certain of which are defined below) are included in the following table (amounts have been rounded). Inv. Income Ratio - The Inv. Income Ratio represents the dividend distributions received divided by average daily net assets. This ratio excludes the mortality and expense risk charge and is affected by the timing of the declaration of dividends by the underlying fund portfolio. FS-61 5. FINANCIAL HIGHLIGHTS, continued Total returns and expense ratios in this disclosure may not be applicable to all policies. Expense Ratio - The Expense Ratio represents the annualized contract expenses of the subccounts for the period indicated and includes only those expenses that are charged through a reduction of the unit value. Included in this category are mortality and expense charges. These fees range between .55 percent and .90 percent (annualized) of net assets, depending on the product selected. Expenses of the underlying fund portfolios and charges made directly to policyowner accounts through the redemption of units are excluded. For this separate account, charges made through the redemption of units ranged up to $25 per policy annually, depending on the product selected. Total Return - The Total Return represents the change in the unit value reported year-to-date, however, subaccounts which commenced during a year, as shown in Note 1, are based on shorter return periods. These percentages do not include any expenses assessed through the redemption of units.
At December 31 For the Periods Ended December 31 ------------------------------------------------------------------------------------------------ Inv. Unit Net Assets Income Expense Total Value ($) Units ($) Ratio % Ratio % Return % ------------------------------------------------------------------------------------------------ Min Max Min Max Calvert: Balanced 2008 1.47 1.71 489,630 746,712 2.91 0.55 (31.70) (31.70) 2007 2.15 2.51 485,571 1,130,594 2.41 0.55 2.19 2.19 2006 2.10 2.46 481,854 1,091,088 3.50 0.55 6.48 8.18 2005 2.27 2.27 198,390 450,317 1.75 0.55 5.07 5.07 2004 2.16 2.16 183,833 397,125 1.98 0.55 7.66 7.66 International Equity 2008 12.34 14.10 59,693 741,844 2.22 0.55 (47.28) (47.28) 2007 23.41 26.75 61,574 1,490,854 1.05 0.55 2.01 2.01 2006 22.95 26.22 60,303 1,422,269 0.83 0.55 26.83 26.83 2005 18.09 20.67 32,530 664,534 0.64 0.55 7.69 9.34 2004 18.91 18.91 26,277 496,824 3.21 0.55 17.30 17.30 Mid Cap 2008 19.24 20.03 26,417 512,042 ---- 0.55 (37.54) (37.54) 2007 30.80 32.07 31,613 980,181 ---- 0.55 9.56 9.56 2006 28.11 29.28 18,987 540,524 ---- 0.55 6.29 6.29 2005 26.45 27.54 8,629 236,292 ---- 0.55 (0.13) 3.87 2004 27.58 27.58 6,369 175,641 ---- 0.55 8.73 8.73 Social Equity 2008 13.51 13.51 41,306 558,097 ---- 0.55 (36.15) (36.15) 2007 21.16 21.16 43,493 920,312 ---- 0.55 9.38 9.38 2006 19.34 19.34 33,799 653,811 ---- 0.55 9.46 9.46 2005 17.67 17.67 5,529 97,716 0.10 0.55 0.36 0.36 2004 ---- ---- ---- ---- ---- ---- ---- ---- FS-62 5. FINANCIAL HIGHLIGHTS, continued At December 31 For the Periods Ended December 31 ------------------------------------------------------------------------------------------------ Inv. Unit Net Assets Income Expense Total Value ($) Units ($) Ratio % Ratio % Return % ------------------------------------------------------------------------------------------------ Min Max Min Max Ameritas: MidCap 2008 25.50 25.50 11,396 290,630 ---- 0.55 (57.72) (57.72) 2007 60.31 60.31 16,296 982,883 ---- 0.55 33.94 33.94 2006 45.03 45.03 4,092 184,261 ---- 0.55 8.65 8.65 2005 41.44 41.44 8,161 338,218 ---- 0.55 10.67 10.67 2004 37.45 37.45 9,506 355,995 ---- 0.55 12.78 12.78 Small Cap 2008 22.61 22.61 29,103 658,096 ---- 0.55 (37.35) (37.35) 2007 36.09 36.09 6,448 232,714 ---- 0.55 11.18 11.18 2006 32.46 32.46 3,586 116,422 ---- 0.55 19.90 19.90 2005 27.07 27.07 1,467 39,715 ---- 0.55 2.06 2.06 2004 26.53 26.53 5,844 155,012 ---- 0.55 1.78 1.78 Core Strategies 2008 12.20 12.21 70,297 857,680 1.40 0.55 (36.22) (35.42) 2007 ---- ---- ---- ---- ---- ---- ---- ---- 2006 ---- ---- ---- ---- ---- ---- ---- ---- 2005 ---- ---- ---- ---- ---- ---- ---- ---- 2004 ---- ---- ---- ---- ---- ---- ---- ---- Scudder: Small Cap 2008 11.82 11.82 7,599 89,822 2.19 0.55 (34.49) (34.49) 2007 18.04 18.04 57,376 1,035,175 0.84 0.55 (2.44) (2.44) 2006 18.49 18.49 69,169 1,279,127 0.73 0.55 16.85 16.85 2005 15.83 15.83 87,077 1,378,097 0.57 0.55 3.69 3.69 2004 15.26 15.26 71,810 1,096,009 0.47 0.55 17.11 17.11 Small Mid Value 2008 7.90 7.90 119,199 941,783 ---- 0.55 (33.14) (30.63) 2007 ---- ---- ---- ---- ---- ---- ---- ---- 2006 ---- ---- ---- ---- ---- ---- ---- ---- 2005 ---- ---- ---- ---- ---- ---- ---- ---- 2004 ---- ---- ---- ---- ---- ---- ---- ---- Thematic 2008 5.82 5.82 17,752 103,318 ---- 0.55 (48.17) (48.17) 2007 ---- ---- ---- ---- ---- ---- ---- ---- 2006 ---- ---- ---- ---- ---- ---- ---- ---- 2005 ---- ---- ---- ---- ---- ---- ---- ---- 2004 ---- ---- ---- ---- ---- ---- ---- ---- FS-63 5. FINANCIAL HIGHLIGHTS, continued At December 31 For the Periods Ended December 31 ------------------------------------------------------------------------------------------------ Inv. Unit Net Assets Income Expense Total Value ($) Units ($) Ratio % Ratio % Return % ------------------------------------------------------------------------------------------------ Min Max Min Max Scudder, continued: HealthCare 2008 9.42 9.43 20,746 195,496 ---- 0.55 (20.59) (17.34) 2007 ---- ---- ---- ---- ---- ---- ---- ---- 2006 ---- ---- ---- ---- ---- ---- ---- ---- 2005 ---- ---- ---- ---- ---- ---- ---- ---- 2004 ---- ---- ---- ---- ---- ---- ---- ---- Fidelity: Overseas IC 2008 15.78 15.78 188,150 2,969,093 2.52 0.55 (44.11) (44.11) 2007 28.24 28.24 204,122 5,763,711 3.38 0.55 16.67 16.67 2006 24.20 24.20 175,855 4,256,169 0.07 0.55 17.44 17.44 2005 20.61 20.61 2,193 45,188 ---- 0.55 0.24 0.24 2004 ---- ---- ---- ---- ---- ---- ---- ---- Inv. Grade Bond IC 2008 13.19 17.06 617,787 8,197,730 3.69 0.55 (3.78) (3.78) 2007 13.71 17.73 464,686 6,671,554 3.62 0.55 3.77 3.77 2006 13.21 17.09 347,466 4,889,147 2.30 0.55 3.78 3.78 2005 12.73 16.46 100,187 1,568,234 3.46 0.55 (.30) 1.63 2004 16.20 16.20 57,536 932,067 4.52 0.55 3.88 3.88 Equity Income IC 2008 17.53 17.53 92,690 1,624,467 2.36 0.55 (42.97) (42.97) 2007 30.73 30.73 107,439 3,301,641 1.74 0.55 0.97 0.97 2006 30.43 30.43 114,257 3,477,339 3.69 0.55 19.54 19.54 2005 25.46 25.46 1,082 27,551 ---- 0.55 6.35 6.35 2004 ---- ---- ---- ---- ---- ---- ---- ---- Growth IC 2008 23.74 23.74 104,673 2,485,255 0.82 0.55 (47.46) (47.46) 2007 45.19 45.19 107,623 4,863,314 0.82 0.55 26.27 26.27 2006 35.79 35.79 86,264 3,087,216 0.01 0.55 6.27 6.27 2005 33.68 33.68 377 12,692 ---- 0.55 0.92 0.92 2004 ---- ---- ---- ---- ---- ---- ---- ---- High Income IC 2008 5.60 5.60 285,316 1,598,368 12.65 0.55 (25.40) (25.40) 2007 7.51 7.51 164,712 1,236,847 8.30 0.55 2.22 2.22 2006 7.35 7.35 134,373 987,107 15.79 0.55 10.63 10.63 2005 6.64 6.64 4,863 32,289 17.01 0.55 0.76 0.76 2004 ---- ---- ---- ---- ---- ---- ---- ---- FS-64 5. FINANCIAL HIGHLIGHTS, continued At December 31 For the Periods Ended December 31 ------------------------------------------------------------------------------------------------ Inv. Unit Net Assets Income Expense Total Value ($) Units ($) Ratio % Ratio % Return % ------------------------------------------------------------------------------------------------ Min Max Min Max Fidelity, continued: High Income SC 2008 6.96 6.96 95,260 663,299 6.03 0.55 (25.47) (25.47) 2007 9.34 9.34 233,765 2,184,110 8.20 0.55 2.09 2.09 2006 9.15 9.15 427,486 3,912,245 7.91 0.55 10.57 10.57 2005 8.28 8.28 950,658 7,868,414 13.95 0.55 1.96 1.96 2004 8.12 8.12 997,681 8,098,576 0.23 0.55 8.87 8.87 Contrafund IC 2008 23.00 23.00 535,745 12,324,624 1.06 0.55 (42.83) (42.83) 2007 40.24 40.24 503,855 20,274,232 1.00 0.55 16.95 16.95 2006 34.41 34.41 456,566 15,709,378 1.65 0.55 11.11 11.11 2005 30.97 30.97 22,757 704,744 ---- 0.55 8.85 8.85 2004 ---- ---- ---- ---- ---- ---- ---- ---- Contrafund SC 2008 23.29 23.29 229,913 5,354,485 1.07 0.55 (42.93) (42.93) 2007 40.81 40.81 217,488 8,875,080 0.80 0.55 16.86 16.86 2006 34.92 34.92 371,194 12,961,788 1.47 0.55 10.98 10.98 2005 31.46 31.46 105,776 3,328,150 0.14 0.55 16.21 16.21 2004 27.08 27.08 44,592 1,207,332 0.21 0.55 14.71 14.71 Mid Cap IC 2008 27.19 27.19 207,460 5,639,934 0.49 0.55 (39.77) (39.77) 2007 45.14 45.14 187,619 8,469,044 0.90 0.55 14.99 14.99 2006 39.25 39.25 169,764 6,664,040 0.05 0.55 12.08 12.08 2005 35.02 35.02 8,368 293,051 ---- 0.55 14.53 14.53 2004 ---- ---- ---- ---- ---- ---- ---- ---- Mid Cap SC 2008 27.06 27.06 29,289 792,554 0.32 0.55 (39.84) (39.84) 2007 44.98 44.98 36,668 1,649,310 0.68 0.55 14.85 14.85 2006 39.16 39.16 52,554 2,058,195 0.24 0.55 11.98 11.98 2005 34.97 34.97 170,540 5,964,555 ---- 0.55 17.56 17.56 2004 29.75 29.75 263,270 7,832,424 ---- 0.55 24.09 24.09 Strategic 2008 9.47 9.48 40,254 381,141 9.69 0.55 (11.58) (9.96) 2007 ---- ---- ---- ---- ---- ---- ---- ---- 2006 ---- ---- ---- ---- ---- ---- ---- ---- 2005 ---- ---- ---- ---- ---- ---- ---- ---- 2004 ---- ---- ---- ---- ---- ---- ---- ---- FS-65 5. FINANCIAL HIGHLIGHTS, continued At December 31 For the Periods Ended December 31 ------------------------------------------------------------------------------------------------ Inv. Unit Net Assets Income Expense Total Value ($) Units ($) Ratio % Ratio % Return % ------------------------------------------------------------------------------------------------ Min Max Min Max AIM: Financial 2008 5.58 5.58 5,955 33,210 4.94 0.55 (59.67) (59.67) 2007 13.83 13.83 2,821 39,003 1.00 0.55 (22.64) (22.64) 2006 17.87 17.87 6,562 117,296 2.08 0.55 15.81 15.81 2005 15.43 15.43 7,314 112,888 1.85 0.55 5.33 5.33 2004 14.65 14.65 5,630 82,500 0.68 0.55 8.08 8.08 Health 2008 16.53 16.53 3,345 55,276 ---- 0.55 (29.01) (29.01) 2007 23.28 23.28 3,343 77,822 ---- 0.55 11.24 11.24 2006 20.93 20.93 4,226 88,440 ---- 0.55 4.66 4.66 2005 20.00 20.00 5,503 110,037 ---- 0.55 7.56 7.56 2004 18.59 18.59 6,295 117,023 ---- 0.55 6.98 6.98 Technology 2008 8.04 8.04 5,699 45,796 ---- 0.55 (44.81) (44.81) 2007 14.56 14.56 7,649 111,378 ---- 0.55 7.11 7.11 2006 13.59 13.59 10,137 137,799 ---- 0.55 9.88 9.88 2005 12.37 12.37 16,526 204,463 ---- 0.55 1.62 1.62 2004 12.18 12.18 9,651 117,507 ---- 0.55 4.06 4.06 Intl. Growth 2008 19.98 19.98 8,790 175,662 1.01 0.55 (37.43) (37.08) 2007 ---- ---- ---- ---- ---- ---- ---- ---- 2006 ---- ---- ---- ---- ---- ---- ---- ---- 2005 ---- ---- ---- ---- ---- ---- ---- ---- 2004 ---- ---- ---- ---- ---- ---- ---- ---- Leisure 2008 7.20 7.20 1,251 9,000 1.46 0.55 (34.28) (34.28) 2007 ---- ---- ---- ---- ---- ---- ---- ---- 2006 ---- ---- ---- ---- ---- ---- ---- ---- 2005 ---- ---- ---- ---- ---- ---- ---- ---- 2004 ---- ---- ---- ---- ---- ---- ---- ---- Janus: Growth 2008 15.70 15.70 3,118 48,970 0.73 0.55 (40.05) (40.05) 2007 26.20 26.20 4,306 112,804 0.71 0.55 14.46 14.46 2006 22.89 22.89 5,115 117,074 0.48 0.55 10.77 10.77 2005 20.66 20.66 69,274 1,431,254 0.37 0.55 3.72 3.72 2004 19.92 19.92 33,296 663,269 0.57 0.55 3.94 3.94 FS-66 5. FINANCIAL HIGHLIGHTS, continued At December 31 For the Periods Ended December 31 ------------------------------------------------------------------------------------------------ Inv. Unit Net Assets Income Expense Total Value ($) Units ($) Ratio % Ratio % Return % ------------------------------------------------------------------------------------------------ Min Max Min Max Neuberger Berman: Balanced 2008 19.60 19.60 15,766 308,948 3.67 0.55 (39.48) (39.48) 2007 32.38 32.38 17,328 561,064 1.19 0.55 14.97 14.97 2006 28.16 28.16 18,422 518,845 0.85 0.55 10.06 10.06 2005 25.59 25.59 19,254 492,686 0.77 0.55 8.59 8.59 2004 23.57 23.57 38,806 914,487 2.50 0.55 8.71 8.71 Growth 2008 28.63 28.63 4,640 132,841 ---- 0.55 (43.99) (43.99) 2007 51.12 51.12 7,427 379,630 ---- 0.55 22.02 22.02 2006 41.89 41.89 4,728 198,041 ---- 0.55 13.45 13.45 2005 36.93 36.93 6,346 234,318 ---- 0.55 12.88 12.88 2004 32.71 32.71 9,741 318,649 ---- 0.55 15.96 15.96 Bond 2008 17.88 17.88 9,992 178,603 4.34 0.55 (13.90) (13.90) 2007 20.76 20.76 11,367 236,003 2.74 0.55 4.20 4.20 2006 19.93 19.93 12,235 243,785 3.26 0.55 3.63 3.63 2005 19.23 19.23 18,688 359,323 2.85 0.55 0.89 0.89 2004 19.06 19.06 15,003 285,919 2.33 0.55 0.23 0.23 Partners 2008 9.85 17.63 56,119 913,228 0.96 0.55 (54.61) (52.65) 2007 37.24 37.24 18,981 706,916 0.60 0.55 8.73 8.73 2006 34.25 34.25 25,926 887,993 0.73 0.55 11.63 11.63 2005 30.68 30.68 41,916 1,286,125 1.16 0.55 17.40 17.40 2004 26.14 26.14 23,615 617,180 0.01 0.55 18.32 18.32 Regency 2008 8.77 8.77 2,268 19,895 0.56 0.55 (39.70) (39.70) 2007 ---- ---- ---- ---- ---- ---- ---- ---- 2006 ---- ---- ---- ---- ---- ---- ---- ---- 2005 ---- ---- ---- ---- ---- ---- ---- ---- 2004 ---- ---- ---- ---- ---- ---- ---- ---- Rydex: Nova 2008 4.63 6.28 125,159 671,178 0.40 0.55 (54.72) (54.72) 2007 10.23 13.87 78,090 940,125 0.47 0.55 0.57 0.57 2006 10.17 13.79 395,249 5,329,823 1.55 0.55 18.62 18.62 2005 8.57 11.62 447,444 5,149,062 0.57 0.55 0.74 3.40 2004 11.24 11.24 880,971 9,902,849 0.02 0.55 14.00 14.00 FS-67 5. FINANCIAL HIGHLIGHTS, continued At December 31 For the Periods Ended December 31 ------------------------------------------------------------------------------------------------ Inv. Unit Net Assets Income Expense Total Value ($) Units ($) Ratio % Ratio % Return % ------------------------------------------------------------------------------------------------ Min Max Min Max Rydex, continued: NASDAQ 2008 10.34 10.63 52,939 550,387 0.13 0.55 (42.23) (42.23) 2007 17.90 18.41 77,132 1,392,619 0.07 0.55 17.18 17.18 2006 15.28 15.71 310,432 4,856,795 ---- 0.55 5.20 5.20 2005 14.52 14.93 328,201 4,896,859 ---- 0.55 0.56 0.86 2004 14.85 14.85 279,555 4,151,581 ---- 0.55 8.75 8.75 Precious Metals 2008 8.76 9.07 447,339 4,000,811 ---- 0.55 (38.90) (38.90) 2007 14.34 14.85 340,976 4,989,846 ---- 0.55 18.90 18.90 2006 12.06 12.49 304,041 3,741,211 ---- 0.55 20.77 20.77 2005 9.99 10.34 146,643 1,465,837 ---- 0.55 20.23 32.24 2004 8.31 8.31 140,385 1,165,996 ---- 0.55 (14.69) (14.69) Inv. S&P 500 2008 6.58 7.32 173,915 1,207,070 0.92 0.55 38.48 38.48 2007 4.75 5.28 172,085 877,066 2.80 0.55 0.27 0.27 2006 4.74 5.27 93,469 464,437 2.47 0.55 (8.01) (8.01) 2005 5.15 5.73 162,666 927,245 ---- 0.55 (3.57) (1.31) 2004 5.80 5.80 36,374 211,085 ---- 0.55 (10.70) (10.70) Gov. Long Bond 2008 18.74 24.56 98,915 1,917,515 2.74 0.55 44.06 44.06 2007 13.01 17.05 122,027 1,690,171 3.59 0.55 9.16 9.16 2006 11.92 15.62 92,526 1,204,890 3.64 0.55 (3.87) (3.67) 2005 16.21 16.21 30,759 498,611 3.14 0.55 7.13 7.13 2004 15.13 15.13 1,825 27,622 3.37 0.55 7.82 7.82 Inverse NASDAQ 2008 27.41 27.41 15,385 421,745 0.35 0.55 47.21 47.21 2007 18.62 18.62 5,161 96,106 2.91 0.55 (11.77) (11.77) 2006 21.11 21.11 2,864 60,455 1.35 0.55 (1.70) (1.70) 2005 21.51 21.51 ---- ---- ---- 0.55 (6.24) (6.24) 2004 ---- ---- ---- ---- ---- ---- ---- ---- Inv. Long Bond 2008 14.75 14.75 6,777 99,946 0.46 0.55 (30.59) (30.59) 2007 21.25 21.25 7,004 148,805 3.57 0.55 (5.04) (5.04) 2006 22.37 22.37 10,490 234,706 6.09 0.55 5.19 5.19 2005 ---- ---- ---- ---- ---- ---- ---- ---- 2004 ---- ---- ---- ---- ---- ---- ---- ---- FS-68 5. FINANCIAL HIGHLIGHTS, continued At December 31 For the Periods Ended December 31 ------------------------------------------------------------------------------------------------ Inv. Unit Net Assets Income Expense Total Value ($) Units ($) Ratio % Ratio % Return % ------------------------------------------------------------------------------------------------ Min Max Min Max Rydex, continued: Russell 2008 18.81 18.81 28,404 534,364 0.22 0.55 (51.63) (51.63) 2007 38.90 38.90 20,979 815,994 2.03 0.55 (7.25) (7.25) 2006 41.94 41.94 24,926 1,045,308 0.56 0.55 20.19 20.19 2005 34.89 34.89 2,332 81,370 0.42 0.55 1.73 1.73 2004 ---- ---- ---- ---- ---- ---- ---- ---- Sector Rotation 2008 10.10 10.10 98,090 990,824 ---- 0.55 (41.06) (41.06) 2007 17.14 17.14 114,316 1,959,170 ---- 0.55 22.07 22.07 2006 14.04 14.04 91,439 1,283,762 ---- 0.55 10.78 10.78 2005 12.67 12.67 8,744 110,822 ---- 0.55 4.22 4.22 2004 ---- ---- ---- ---- ---- ---- ---- ---- Third Avenue: Value 2008 17.28 18.00 485,016 8,534,628 0.78 0.55 (43.97) (43.97) 2007 30.83 32.13 472,613 14,827,118 2.30 0.55 (5.33) (5.33) 2006 32.57 33.94 381,483 12,620,684 1.43 0.55 15.15 15.15 2005 28.28 29.47 306,348 8,999,501 1.24 0.55 11.14 14.00 2004 25.86 25.86 168,797 4,364,316 0.55 0.55 19.24 19.24 Vanguard: Money Market 2008 1.14 1.19 48,030,390 55,210,191 2.76 0.55 2.26 2.26 2007 1.11 1.17 48,131,794 54,415,617 5.10 0.55 4.66 4.66 2006 1.06 1.12 42,795,654 46,352,623 4.99 0.55 4.46 4.46 2005 1.02 1.07 20,580,095 21,857,602 3.11 0.55 1.58 2.62 2004 1.04 1.04 16,560,178 17,244,326 1.28 0.55 0.72 0.72 Equity Index 2008 21.02 25.63 639,316 14,112,873 2.34 0.55 (37.28) (37.28) 2007 35.52 40.87 762,415 26,625,611 1.53 0.55 4.80 4.80 2006 31.99 38.99 631,029 20,791,601 0.56 0.55 15.08 15.08 2005 27.80 33.89 92,141 2,954,754 1.44 0.55 4.22 5.05 2004 32.51 32.51 53,526 1,740,260 0.98 0.55 10.20 10.20 Total Bond 2008 12.91 15.29 1,945,330 25,711,833 4.33 0.55 4.65 4.65 2007 12.34 14.61 1,935,914 24,310,003 3.42 0.55 6.40 6.40 2006 11.60 13.73 1,344,627 15,947,242 2.24 0.55 3.74 3.74 2005 11.18 13.23 405,719 4,881,337 2.41 0.55 0.09 1.84 2004 13.00 13.00 57,321 744,899 3.77 0.55 3.63 3.63 FS-69 5. FINANCIAL HIGHLIGHTS, continued At December 31 For the Periods Ended December 31 ------------------------------------------------------------------------------------------------ Inv. Unit Net Assets Income Expense Total Value ($) Units ($) Ratio % Ratio % Return % ------------------------------------------------------------------------------------------------ Min Max Min Max Vanguard, continued: REIT Index 2008 14.04 18.09 580,363 8,310,315 3.25 0.55 (37.59) (37.59) 2007 22.50 28.99 539,700 12,404,118 2.08 0.55 (17.06) (17.06) 2006 27.13 34.95 661,898 18,456,625 0.71 0.55 34.19 34.19 2005 20.22 26.04 96,607 2,285,294 3.34 0.55 5.35 11.22 2004 23.41 23.41 86,135 2,016,796 6.81 0.55 29.80 29.80 Mid-Cap 2008 12.65 14.01 777,122 9,873,957 1.61 0.55 (42.14) (42.14) 2007 21.86 24.22 822,552 18,086,175 1.20 0.55 5.56 5.56 2006 20.71 22.94 787,017 16,397,767 0.26 0.55 13.13 13.13 2005 18.31 20.28 82,297 1,606,048 0.79 0.55 5.11 13.35 2004 17.89 17.89 45,218 808,957 0.58 0.55 19.66 19.66 Stock Market Index 2008 22.10 22.10 327,549 7,238,303 1.49 0.55 (37.63) (37.63) 2007 35.43 35.43 304,394 10,784,409 0.99 0.55 4.59 4.59 2006 33.88 33.88 265,291 8,986,977 0.10 0.55 14.89 14.89 2005 29.48 29.48 5,337 157,346 ---- 0.55 2.70 2.70 2004 ---- ---- ---- ---- ---- ---- ---- ---- Equity Income 2008 15.91 20.95 518,223 9,314,197 3.62 0.55 (31.29) (31.29) 2007 23.15 30.49 482,703 12,683,561 2.51 0.55 3.96 3.96 2006 22.27 29.33 411,421 10,214,549 1.46 0.55 20.04 20.04 2005 18.55 24.43 122,247 2,809,276 2.24 0.55 3.17 3.57 2004 23.59 23.59 60,232 1,420,992 1.86 0.55 12.70 12.70 Growth 2008 8.89 9.32 503,077 4,485,807 0.87 0.55 (38.06) (38.06) 2007 14.36 15.05 656,471 9,452,696 0.72 0.55 9.61 9.61 2006 13.10 13.73 619,520 8,142,998 0.11 0.55 1.36 1.36 2005 12.92 13.55 165,618 2,177,134 0.22 0.55 6.53 10.88 2004 12.22 12.22 19,449 237,587 0.32 0.55 6.66 6.66 High Yield Bond 2008 7.27 9.39 597,404 4,393,161 8.42 0.55 (22.38) (22.38) 2007 9.36 12.10 621,014 6,099,866 6.73 0.55 1.39 1.39 2006 9.23 11.93 589,079 5,742,313 3.96 0.55 7.68 7.68 2005 8.57 11.08 180,994 1,926,376 7.05 0.55 0.52 2.19 2004 10.85 10.85 85,431 926,544 17.25 0.55 7.93 7.93 FS-70 5. FINANCIAL HIGHLIGHTS, continued At December 31 For the Periods Ended December 31 ------------------------------------------------------------------------------------------------ Inv. Unit Net Assets Income Expense Total Value ($) Units ($) Ratio % Ratio % Return % ------------------------------------------------------------------------------------------------ Min Max Min Max Vanguard, continued: Balanced 2008 18.03 18.03 452,699 8,162,589 3.42 0.55 (23.00) (23.00) 2007 23.42 23.42 459,356 10,756,303 2.73 0.55 7.76 7.76 2006 21.73 21.73 462,269 10,044,676 0.37 0.55 14.33 14.33 2005 19.00 19.00 9,440 179,405 ---- 0.55 3.12 3.12 2004 ---- ---- ---- ---- ---- ---- ---- ---- International 2008 13.97 15.07 1,507,184 21,268,887 2.57 0.55 (45.22) (45.22) 2007 25.50 27.51 1,624,733 41,962,849 1.61 0.55 16.77 16.77 2006 21.84 23.56 1,439,558 31,859,581 0.53 0.55 26.06 26.06 2005 17.32 18.69 340,392 6,266,437 1.03 0.55 15.67 17.20 2004 16.15 16.15 120,638 1,948,874 0.91 0.55 18.77 18.77 Diversified 2008 11.12 11.77 1,249,193 14,079,983 2.83 0.55 (36.49) (36.49) 2007 17.51 18.54 1,107,816 19,768,594 1.78 0.55 3.36 3.36 2006 16.94 17.94 850,501 14,638,265 0.98 0.55 18.23 18.23 2005 14.32 15.17 251,942 3,786,037 1.27 0.55 2.47 7.03 2004 14.18 14.18 153,437 2,175,006 1.16 0.55 19.80 19.80 Small Company Growth 2008 13.32 14.33 530,570 7,087,900 0.67 0.55 (39.80) (39.80) 2007 22.13 23.81 518,349 11,521,567 0.50 0.55 3.20 3.20 2006 21.45 23.07 506,669 10,931,042 0.11 0.55 9.61 9.61 2005 19.57 21.05 70,417 1,443,515 ---- 0.55 3.53 5.68 2004 19.92 19.92 30,773 612,887 0.07 0.55 14.67 14.67 Wells Fargo: Discovery 2008 10.96 10.96 20,528 225,051 ---- 0.55 (44.66) (44.66) 2007 19.81 19.81 18,963 375,675 ---- 0.55 21.65 21.65 2006 16.29 16.29 20,286 330,366 ---- 0.55 14.02 14.02 2005 14.28 14.28 16,959 242,220 ---- 0.55 15.37 15.37 2004 ---- ---- ---- ---- ---- ---- ---- ---- Opportunity 2008 32.33 32.33 10,187 329,381 1.86 0.55 (40.43) (40.43) 2007 54.28 54.28 12,901 700,202 0.60 0.55 6.09 6.09 2006 51.16 51.16 12,124 620,282 ---- 0.55 11.61 11.61 2005 45.84 45.84 17,405 797,882 ---- 0.55 7.30 7.30 2004 42.72 42.72 20,682 883,612 ---- 0.55 17.57 17.57 FS-71 5. FINANCIAL HIGHLIGHTS, continued At December 31 For the Periods Ended December 31 ------------------------------------------------------------------------------------------------ Inv. Unit Net Assets Income Expense Total Value ($) Units ($) Ratio % Ratio % Return % ------------------------------------------------------------------------------------------------ Min Max Min Max ProFunds: Bull 2008 20.15 20.15 58,506 1,178,995 ---- 0.90 (38.23) (38.23) 2007 32.62 32.62 21,372 697,200 0.47 0.90 2.62 2.62 2006 31.79 31.79 45,737 1,453,929 0.26 0.90 12.64 12.64 2005 28.22 28.22 19,017 536,665 0.25 0.90 3.93 3.93 2004 ---- ---- ---- ---- ---- ---- ---- ---- Europe 2008 20.47 20.47 1,345 27,539 1.70 0.90 (44.51) (44.51) 2007 36.89 36.89 33,583 1,238,891 1.16 0.90 13.55 13.55 2006 32.49 32.49 30,515 991,362 0.20 0.90 16.46 16.46 2005 27.90 27.90 207 5,764 0.41 0.90 0.15 0.15 2004 ---- ---- ---- ---- ---- ---- ---- ---- Mid-Cap 2008 24.36 24.36 2,648 64,496 ---- 0.90 (36.87) (36.87) 2007 38.58 38.58 866 33,420 0.11 0.90 0.06 0.06 2006 38.56 38.56 6,505 250,822 0.01 0.90 11.30 11.30 2005 34.64 34.64 14,013 485,481 ---- 0.90 3.20 3.20 2004 ---- ---- ---- ---- ---- ---- ---- ---- NASDAQ-100 2008 10.41 10.41 140 1,457 ---- 0.90 (43.00) (43.00) 2007 18.26 18.26 15,006 273,961 ---- 0.90 16.57 16.57 2006 15.66 15.66 61,857 968,772 ---- 0.90 4.52 4.52 2005 14.98 14.98 40,009 599,483 ---- 0.90 8.40 8.40 2004 ---- ---- ---- ---- ---- ---- ---- ---- Small-Cap 2008 25.94 25.94 349 9,058 0.02 0.90 (35.99) (35.99) 2007 40.53 40.53 264 10,721 0.16 0.90 (3.10) (3.10) 2006 41.83 41.83 8,293 346,872 ---- 0.90 13.73 13.73 2005 36.78 36.78 11,363 417,911 ---- 0.90 3.28 3.28 2004 ---- ---- ---- ---- ---- ---- ---- ---- Small-Cap Value 2008 24.11 24.11 723 17,425 ---- 0.90 (31.31) (31.31) 2007 35.10 35.10 886 31,085 ---- 0.90 (8.06) (8.06) 2006 38.17 38.17 2,435 92,952 ---- 0.90 16.38 16.38 2005 32.80 32.80 13,386 439,058 ---- 0.90 (0.49) (0.49) 2004 ---- ---- ---- ---- ---- ---- ---- ---- FS-72 5. FINANCIAL HIGHLIGHTS, continued At December 31 For the Periods Ended December 31 ------------------------------------------------------------------------------------------------ Inv. Unit Net Assets Income Expense Total Value ($) Units ($) Ratio % Ratio % Return % ------------------------------------------------------------------------------------------------ Min Max Min Max ProFunds, continued: Classic Dow 2008 23.81 23.81 1,765 42,015 0.77 0.90 (37.72) (37.72) 2007 38.23 38.23 7,922 302,855 0.46 0.90 11.92 11.92 2006 34.16 34.16 20,527 701,180 ---- 0.90 5.23 5.23 2005 ---- ---- ---- ---- ---- ---- ---- ---- 2004 ---- ---- ---- ---- ---- ---- ---- ---- Bear 2008 34.42 34.42 2,889 99,421 0.10 0.90 30.00 30.00 2007 25.84 25.84 820 21,191 2.16 0.90 (3.05) (3.05) 2006 25.77 25.77 5,920 152,555 0.84 0.90 (7.05) (7.05) 2005 28.10 28.10 59,086 1,660,464 ---- 0.90 (3.59) (3.59) 2004 ---- ---- ---- ---- ---- ---- ---- ---- Short NASDAQ 2008 23.53 23.53 20,272 476,911 2.46 0.90 46.84 46.84 2007 16.02 16.02 10,417 166,904 3.00 0.90 (12.26) (12.26) 2006 18.07 18.07 7,955 143,707 2.34 0.90 (2.25) (2.25) 2005 18.48 18.48 17,318 320,062 ---- 0.90 (7.87) (7.87) 2004 ---- ---- ---- ---- ---- ---- ---- ---- Short Small-Cap 2008 17.72 17.72 ---- ---- 3.89 0.90 45.43 45.43 2007 15.18 15.18 20,065 304,673 0.63 0.90 2.33 2.33 2006 14.57 14.57 5,273 76,802 0.27 0.90 (7.38) (7.38) 2005 16.62 16.62 ---- ---- ---- 0.90 (2.33) (2.33) 2004 ---- ---- ---- ---- ---- ---- ---- ---- Short Dow 2008 31.84 31.84 ---- ---- ---- 0.90 31.46 31.46 2007 27.36 27.36 93 2,537 5.37 0.90 (5.53) (5.53) 2006 28.06 28.06 219 6,133 ---- 0.90 (6.46) (6.46) 2005 ---- ---- ---- ---- ---- ---- ---- ---- 2004 ---- ---- ---- ---- ---- ---- ---- ---- UltraMid 2008 14.05 14.05 1,689 23,729 0.75 0.90 (67.77) (67.77) 2007 43.60 43.60 141 6,154 0.82 0.90 5.02 5.02 2006 41.51 41.51 44 1,820 ---- 0.90 9.65 9.65 2005 37.86 37.86 154 5,820 ---- 0.90 3.53 3.53 2004 ---- ---- ---- ---- ---- ---- ---- ---- FS-73 5. FINANCIAL HIGHLIGHTS, continued At December 31 For the Periods Ended December 31 ------------------------------------------------------------------------------------------------ Inv. Unit Net Assets Income Expense Total Value ($) Units ($) Ratio % Ratio % Return % ------------------------------------------------------------------------------------------------ Min Max Min Max ProFunds, continued: UltraOTC 2008 7.29 7.29 25,438 185,410 ---- 0.90 (92.71) (92.71) 2007 55.64 55.64 13,543 753,499 ---- 0.90 27.33 27.33 2006 43.70 43.70 2,034 88,859 ---- 0.90 (8.40) (8.40) 2005 2.96 2.96 110,287 325,978 ---- 0.90 8.04 8.04 2004 ---- ---- ---- ---- ---- ---- ---- ---- UltraSmall 2008 11.03 11.03 8,165 90,069 0.51 0.90 (66.49) (66.49) 2007 32.92 32.92 7,657 252,043 1.91 0.90 (13.96) (13.96) 2006 38.26 38.26 1,278 48,879 0.01 0.90 24.88 24.88 2005 30.63 30.63 658 20,144 ---- 0.90 (3.32) (3.32) 2004 ---- ---- ---- ---- ---- ---- ---- ---- UltraBull 2008 8.12 8.12 11,026 89,542 0.40 0.90 (67.69) (67.69) 2007 25.13 25.13 71,811 1,804,875 0.84 0.90 (0.05) (0.05) 2006 25.15 25.15 5,976 150,289 0.09 0.90 21.96 21.96 2005 20.62 20.62 98 2,015 ---- 0.90 4.91 4.91 2004 ---- ---- ---- ---- ---- ---- ---- ---- U.S. Gov. Plus 2008 50.16 50.16 933 46,792 1.84 0.90 48.39 48.39 2007 33.80 33.80 28,719 970,789 3.52 0.90 9.12 9.12 2006 30.98 30.98 4,786 148,265 3.32 0.90 (5.40) (5.40) 2005 32.74 32.74 8,112 265,628 0.75 0.90 (4.30) (4.30) 2004 ---- ---- ---- ---- ---- ---- ---- ---- Opportunity 2008 10.87 10.87 ---- ---- ---- 0.90 (26.74) (26.74) 2007 18.48 18.48 965 17,835 ---- 0.90 (5.32) (5.32) 2006 20.85 20.85 8,742 182,253 0.01 0.90 9.17 9.17 2005 19.10 19.10 113,830 2,173,863 ---- 0.90 (2.11) (2.11) 2004 ---- ---- ---- ---- ---- ---- ---- ---- Oil & Gas 2008 46.97 46.97 5,038 236,619 ---- 0.90 (37.51) (37.51) 2007 75.16 75.16 5,476 411,581 ---- 0.90 31.28 31.28 2006 57.25 57.25 7,065 404,459 ---- 0.90 19.55 19.55 2005 47.89 47.89 646 30,917 ---- 0.90 4.44 4.44 2004 ---- ---- ---- ---- ---- ---- ---- ---- FS-74 5. FINANCIAL HIGHLIGHTS, continued At December 31 For the Periods Ended December 31 ------------------------------------------------------------------------------------------------ Inv. Unit Net Assets Income Expense Total Value ($) Units ($) Ratio % Ratio % Return % ------------------------------------------------------------------------------------------------ Min Max Min Max ProFunds, continued: Precious Metals 2008 36.43 36.43 13,938 507,796 4.41 0.90 (31.38) (31.38) 2007 53.09 53.09 30,790 1,634,741 3.07 0.90 21.36 21.36 2006 43.75 43.75 10,039 439,196 0.86 0.90 6.40 6.40 2005 41.12 41.12 695 28,565 ---- 0.90 15.20 15.20 2004 ---- ---- ---- ---- ---- ---- ---- ---- Real Estate 2008 32.50 32.50 236 7,684 ---- 0.90 (41.78) (41.78) 2007 55.84 55.84 3,043 169,922 0.65 0.90 (20.34) (20.34) 2006 70.09 70.09 5,846 409,720 0.97 0.90 31.30 31.30 2005 53.38 53.38 31 1,659 0.09 0.90 0.50 0.50 2004 ---- ---- ---- ---- ---- ---- ---- ---- High Yield 2008 27.05 27.05 783 21,177 4.80 0.90 (6.46) (6.46) 2007 28.92 28.92 851 24,615 10.59 0.90 (1.32) (1.32) 2006 31.74 31.74 1,284 40,766 5.57 0.90 5.31 5.31 2005 30.94 30.94 ---- ---- ---- 0.90 (0.89) (0.89) 2004 ---- ---- ---- ---- ---- ---- ---- ---- Money Market 2008 1.06 1.06 9,449,745 10,056,327 0.86 0.90 (0.07) (0.07) 2007 1.06 1.06 10,708,522 11,403,574 3.71 0.90 2.84 2.84 2006 1.04 1.04 15,408,022 15,955,576 3.67 0.90 2.78 2.78 2005 1.01 1.01 4,935,612 4,972,582 1.31 0.90 0.75 0.75 2004 ---- ---- ---- ---- ---- ---- ---- ---- Pimco: Commodity 2008 8.17 8.17 659,659 5,390,685 4.51 0.55 (44.10) (44.10) 2007 14.62 14.62 610,037 8,917,987 4.61 0.55 22.56 22.56 2006 11.93 11.93 562,938 6,714,594 7.34 0.55 (3.63) (3.63) 2005 12.38 12.38 2,221 27,483 1.14 0.55 (3.16) (3.16) 2004 ---- ---- ---- ---- ---- ---- ---- ---- FS-75 5. FINANCIAL HIGHLIGHTS, continued At December 31 For the Periods Ended December 31 ------------------------------------------------------------------------------------------------ Inv. Unit Net Assets Income Expense Total Value ($) Units ($) Ratio % Ratio % Return % ------------------------------------------------------------------------------------------------ Min Max Min Max American Century: Mid Cap 2008 9.74 9.75 48,225 469,946 ---- 0.55 (24.87) (23.43) 2007 ---- ---- ---- ---- ---- ---- ---- ---- 2006 ---- ---- ---- ---- ---- ---- ---- ---- 2005 ---- ---- ---- ---- ---- ---- ---- ---- 2004 ---- ---- ---- ---- ---- ---- ---- ---- International 2008 5.92 5.94 73,397 434,426 ---- 0.55 (43.47) (4.44) 2007 ---- ---- ---- ---- ---- ---- ---- ---- 2006 ---- ---- ---- ---- ---- ---- ---- ---- 2005 ---- ---- ---- ---- ---- ---- ---- ---- 2004 ---- ---- ---- ---- ---- ---- ---- ---- Franklin Templeton: Global Inc. 2008 17.69 17.70 120,046 2,123,955 1.11 0.55 0.64 0.90 2007 ---- ---- ---- ---- ---- ---- ---- ---- 2006 ---- ---- ---- ---- ---- ---- ---- ---- 2005 ---- ---- ---- ---- ---- ---- ---- ---- 2004 ---- ---- ---- ---- ---- ---- ---- ---- MFS: Utilities IC 2008 18.17 18.18 10,150 184,480 ---- 0.55 (38.64) (36.66) 2007 ---- ---- ---- ---- ---- ---- ---- ---- 2006 ---- ---- ---- ---- ---- ---- ---- ---- 2005 ---- ---- ---- ---- ---- ---- ---- ---- 2004 ---- ---- ---- ---- ---- ---- ---- ---- Research 2008 8.86 8.87 6,058 53,725 ---- 0.55 (42.51) (41.44) 2007 ---- ---- ---- ---- ---- ---- ---- ---- 2006 ---- ---- ---- ---- ---- ---- ---- ---- 2005 ---- ---- ---- ---- ---- ---- ---- ---- 2004 ---- ---- ---- ---- ---- ---- ---- ---- FS-76 5. FINANCIAL HIGHLIGHTS, continued At December 31 For the Periods Ended December 31 ------------------------------------------------------------------------------------------------ Inv. Unit Net Assets Income Expense Total Value ($) Units ($) Ratio % Ratio % Return % ------------------------------------------------------------------------------------------------ Min Max Min Max Summit: Natural Res 2008 36.36 36.37 9,276 337,322 0.14 0.55 (47.80) (47.64) 2007 ---- ---- ---- ---- ---- ---- ---- ---- 2006 ---- ---- ---- ---- ---- ---- ---- ---- 2005 ---- ---- ---- ---- ---- ---- ---- ---- 2004 ---- ---- ---- ---- ---- ---- ---- ---- Zenith 2008 49.81 49.81 2,087 103,930 0.52 0.55 2.82 2.82 2007 ---- ---- ---- ---- ---- ---- ---- ---- 2006 ---- ---- ---- ---- ---- ---- ---- ---- 2005 ---- ---- ---- ---- ---- ---- ---- ---- 2004 ---- ---- ---- ---- ---- ---- ---- ---- S&P 500 2008 59.40 59.40 2,916 173,197 1.70 0.55 2.79 2.79 2007 ---- ---- ---- ---- ---- ---- ---- ---- 2006 ---- ---- ---- ---- ---- ---- ---- ---- 2005 ---- ---- ---- ---- ---- ---- ---- ---- 2004 ---- ---- ---- ---- ---- ---- ---- ---- T. Rowe: Blue Chip 2008 6.77 6.77 486,961 3,294,309 0.20 0.55 (40.28) (39.16) 2007 ---- ---- ---- ---- ---- ---- ---- ---- 2006 ---- ---- ---- ---- ---- ---- ---- ---- 2005 ---- ---- ---- ---- ---- ---- ---- ---- 2004 ---- ---- ---- ---- ---- ---- ---- ---- Morgan Stanley: Emerging Markets 2008 10.49 10.49 88,926 932,732 ---- 0.55 (54.10) (54.05) 2007 ---- ---- ---- ---- ---- ---- ---- ---- 2006 ---- ---- ---- ---- ---- ---- ---- ---- 2005 ---- ---- ---- ---- ---- ---- ---- ---- 2004 ---- ---- ---- ---- ---- ---- ---- ----
FS-77 6. CHANGES IN UNITS OUTSTANDING The change in units outstanding for the periods ended December 31, were as follows:
2008 2007 --------------------- -------------------- Calvert: Balanced -------- Units issued 346,714 476,451 Units redeemed (342,655) (472,734) --------------------- -------------------- Net increase(decrease) 4,059 3,717 ===================== ==================== International Equity -------------------- Units issued 34,012 84,873 Units redeemed (35,893) (83,602) --------------------- -------------------- Net increase(decrease) (1,881) 1,271 ===================== ==================== Mid Cap ------- Units issued 2,619 21,673 Units redeemed (7,815) (9,047) --------------------- -------------------- Net increase(decrease) (5,196) 12,626 ===================== ==================== Social Equity ------------- Units issued 6,958 16,594 Units redeemed (9,145) (6,900) --------------------- -------------------- Net increase(decrease) (2,187) 9,694 ===================== ==================== Ameritas: MidCap ------ Units issued 12,798 23,026 Units redeemed (17,698) (10,822) --------------------- -------------------- Net increase(decrease) (4,900) 12,204 ===================== ==================== Small Cap --------- Units issued 36,038 10,430 Units redeemed (13,383) (7,568) --------------------- -------------------- Net increase(decrease) 22,655 2,862 ===================== ==================== Core Strategies --------------- Units issued 173,493 ---- Units redeemed (103,196) ---- --------------------- -------------------- Net increase(decrease) 70,297 ---- ===================== ==================== FS-78 6. CHANGES IN UNITS OUTSTANDING, continued 2008 2007 --------------------- -------------------- Scudder: Small Cap --------- Units issued 12,502 24,146 Units redeemed (62,279) (35,939) --------------------- -------------------- Net increase(decrease) (49,777) (11,793) ===================== ==================== Small Mid Value --------------- Units issued 261,688 ---- Units redeemed (142,489) ---- --------------------- -------------------- Net increase(decrease) 119,199 ---- ===================== ==================== Thematic -------- Units issued 34,830 ---- Units redeemed (17,078) ---- --------------------- -------------------- Net increase(decrease) 17,752 ---- ===================== ==================== Health Care ----------- Units issued 65,482 ---- Units redeemed (44,736) ---- --------------------- -------------------- Net increase(decrease) 20,746 ---- ===================== ==================== Fidelity: Overseas IC ----------- Units issued 154,112 138,531 Units redeemed (170,084) (110,264) --------------------- -------------------- Net increase(decrease) (15,972) 28,267 ===================== ==================== Inv. Grade Bond IC ------------------ Units issued 737,819 320,278 Units redeemed (584,718) (203,058) --------------------- -------------------- Net increase(decrease) 153,101 117,220 ===================== ==================== Equity Income IC ---------------- Units issued 20,123 50,380 Units redeemed (34,872) (57,198) --------------------- -------------------- Net increase(decrease) (14,749) (6,818) ===================== ==================== Growth IC --------- Units issued 75,481 51,859 Units redeemed (78,431) (30,500) --------------------- -------------------- Net increase(decrease) (2,950) 21,359 ===================== ==================== High Income IC -------------- Units issued 312,622 158,925 Units redeemed (192,018) (128,586) --------------------- -------------------- Net increase(decrease) 120,604 30,339 ===================== ==================== FS-79 6. CHANGES IN UNITS OUTSTANDING, continued 2008 2007 --------------------- -------------------- Fidelity, continued: High Income SC -------------- Units issued 382,316 608,471 Units redeemed (520,821) (802,192) --------------------- -------------------- Net increase(decrease) (138,505) (193,721) ===================== ==================== Contrafund IC ------------- Units issued 399,884 286,324 Units redeemed (367,994) (239,035) --------------------- -------------------- Net increase(decrease) 31,890 47,289 ===================== ==================== Contrafund SC ------------- Units issued 337,134 293,939 Units redeemed (324,709) (447,645) --------------------- -------------------- Net increase(decrease) 12,425 (153,706) ===================== ==================== Mid Cap IC ---------- Units issued 114,164 63,997 Units redeemed (94,323) (46,142) --------------------- -------------------- Net increase(decrease) 19,841 17,855 ===================== ==================== Mid Cap SC ---------- Units issued 15,221 28,381 Units redeemed (22,600) (44,267) --------------------- -------------------- Net increase(decrease) (7,379) (15,886) ===================== ==================== Strategic --------- Units issued 47,881 ---- Units redeemed (7,627) ---- --------------------- -------------------- Net increase(decrease) 40,254 ---- ===================== ==================== AIM: Financial --------- Units issued 16,959 14,290 Units redeemed (13,825) (18,031) --------------------- -------------------- Net increase(decrease) 3,134 (3,741) ===================== ==================== Health ------ Units issued 3,202 8,343 Units redeemed (3,200) (9,226) --------------------- -------------------- Net increase(decrease) 2 (883) ===================== ==================== Technology ---------- Units issued 5,373 12,125 Units redeemed (7,323) (14,613) --------------------- -------------------- Net increase(decrease) (1,950) (2,488) ===================== ==================== FS-80 6. CHANGES IN UNITS OUTSTANDING, continued 2008 2007 --------------------- -------------------- AIM, continued: Intl. Growth ------------ Units issued 13,707 ---- Units redeemed (4,917) ---- --------------------- -------------------- Net increase(decrease) 8,790 ---- ===================== ==================== Leisure ------- Units issued 1,264 ---- Units redeemed (13) ---- --------------------- -------------------- Net increase(decrease) 1,251 ---- ===================== ==================== Janus: Growth ------ Units issued ---- ---- Units redeemed (1,188) (809) --------------------- -------------------- Net increase(decrease) (1,188) (809) ===================== ==================== Neuberger Berman: Balanced -------- Units issued 538 1,980 Units redeemed (2,100) (3,074) --------------------- -------------------- Net increase(decrease) (1,562) (1,094) ===================== ==================== Growth ------ Units issued 1,431 15,408 Units redeemed (4,218) (12,709) --------------------- -------------------- Net increase(decrease) (2,787) 2,699 ===================== ==================== Bond ---- Units issued 1,493 3,786 Units redeemed (2,868) (4,654) --------------------- -------------------- Net increase(decrease) (1,375) (868) ===================== ==================== Partners -------- Units issued 89,632 6,259 Units redeemed (52,494) (13,204) --------------------- -------------------- Net increase(decrease) 37,138 (6,945) ===================== ==================== Regency ------- Units issued 3,153 ---- Units redeemed (885) ---- --------------------- -------------------- Net increase(decrease) 2,268 ---- ===================== ==================== Rydex: Nova ---- Units issued 533,642 684,153 Units redeemed (486,573) (1,001,312) --------------------- -------------------- Net increase(decrease) 47,069 (317,159) ===================== ==================== FS-81 6. CHANGES IN UNITS OUTSTANDING, continued 2008 2007 --------------------- -------------------- Rydex, continued: NASDAQ ------ Units issued 290,458 197,079 Units redeemed (314,651) (430,379) --------------------- -------------------- Net increase(decrease) (24,193) (233,300) ===================== ==================== Precious Metals --------------- Units issued 1,030,824 949,861 Units redeemed (924,461) (912,926) --------------------- -------------------- Net increase(decrease) 106,363 36,935 ===================== ==================== Inv. S&P 500 ------------ Units issued 2,075,034 1,024,009 Units redeemed (2,073,204) (945,393) --------------------- -------------------- Net increase(decrease) 1,830 78,616 ===================== ==================== Gov. Long Bond -------------- Units issued 131,810 121,953 Units redeemed (154,922) (92,452) --------------------- -------------------- Net increase(decrease) (23,112) 29,501 ===================== ==================== Inverse NASDAQ -------------- Units issued 50,161 42,055 Units redeemed (39,937) (39,758) --------------------- -------------------- Net increase(decrease) 10,224 2,297 ===================== ==================== Inv. Long Bond -------------- Units issued 41,203 17,624 Units redeemed (41,430) (21,110) --------------------- -------------------- Net increase(decrease) (227) (3,486) ===================== ==================== Russell ------- Units issued 23,352 14,697 Units redeemed (15,927) (18,644) --------------------- -------------------- Net increase(decrease) 7,425 (3,947) ===================== ==================== Sector Rotation --------------- Units issued 93,405 94,125 Units redeemed (109,631) (71,248) --------------------- -------------------- Net increase(decrease) (16,226) 22,877 ===================== ==================== Third Avenue: Value ----- Units issued 521,895 545,113 Units redeemed (509,492) (453,983) --------------------- -------------------- Net increase(decrease) 12,403 91,130 ===================== ==================== FS-82 6. CHANGES IN UNITS OUTSTANDING, continued 2008 2007 --------------------- -------------------- Vanguard: Money Market ------------ Units issued 88,584,442 88,957,088 Units redeemed (88,685,846) (83,620,948) --------------------- -------------------- Net increase(decrease) (101,404) 5,336,140 ===================== ==================== Equity Index ------------ Units issued 539,917 685,459 Units redeemed (663,016) (554,073) --------------------- -------------------- Net increase(decrease) (123,099) 131,386 ===================== ==================== Total Bond ---------- Units issued 1,865,969 1,544,400 Units redeemed (1,856,553) (953,113) --------------------- -------------------- Net increase(decrease) 9,416 591,287 ===================== ==================== REIT Index ---------- Units issued 406,263 248,215 Units redeemed (365,600) (370,413) --------------------- -------------------- Net increase(decrease) 40,663 (122,198) ===================== ==================== Mid-Cap ------- Units issued 213,315 245,962 Units redeemed (258,745) (210,427) --------------------- -------------------- Net increase(decrease) (45,430) 35,535 ===================== ==================== Stock Market Index ------------------ Units issued 122,393 128,989 Units redeemed (99,238) (89,886) --------------------- -------------------- Net increase(decrease) 23,155 39,103 ===================== ==================== Equity Income ------------- Units issued 448,679 547,240 Units redeemed (413,159) (475,958) --------------------- -------------------- Net increase(decrease) 35,520 71,282 ===================== ==================== Growth ------ Units issued 248,001 383,974 Units redeemed (401,395) (347,023) --------------------- -------------------- Net increase(decrease) (153,394) 36,951 ===================== ==================== High Yield Bond --------------- Units issued 718,724 420,683 Units redeemed ( 742,334) (388,748) --------------------- -------------------- Net increase(decrease) (23,610) 31,935 ===================== ==================== FS-83 6. CHANGES IN UNITS OUTSTANDING, continued 2008 2007 --------------------- -------------------- Vanguard, continued: Balanced -------- Units issued 191,896 149,969 Units redeemed (198,553) (152,882) --------------------- -------------------- Net increase(decrease) (6,657) (2,913) ===================== ==================== International ------------- Units issued 1,047,662 861,315 Units redeemed (1,165,211) (676,140) --------------------- -------------------- Net increase(decrease) (117,549) 185,175 ===================== ==================== Diversified ----------- Units issued 1,527,065 1,324,123 Units redeemed (1,385,688) (1,066,808) --------------------- -------------------- Net increase(decrease) 141,377 257,315 ===================== ==================== Small Company Growth -------------------- Units issued 438,657 311,314 Units redeemed (426,436) (299,634) --------------------- -------------------- Net increase(decrease) 12,221 11,680 ===================== ==================== Wells Fargo: Discovery --------- Units issued 6,772 12,161 Units redeemed (5,207) (13,484) --------------------- -------------------- Net increase(decrease) 1,565 (1,323) ===================== ==================== Opportunity ----------- Units issued 402 1,452 Units redeemed (3,116) (675) --------------------- -------------------- Net increase(decrease) (2,714) 777 ===================== ==================== ProFunds: Bull ---- Units issued 303,275 38,020 Units redeemed (266,141) (62,385) --------------------- -------------------- Net increase(decrease) 37,134 (24,365) ===================== ==================== Europe ------ Units issued 41,929 100,348 Units redeemed (74,167) (97,280) --------------------- -------------------- Net increase(decrease) (32,238) 3,068 ===================== ==================== FS-84 6. CHANGES IN UNITS OUTSTANDING, continued 2008 2007 --------------------- -------------------- ProFunds, continued: Mid-Cap ------- Units issued 8,859 37,897 Units redeemed (7,077) (43,536) --------------------- -------------------- Net increase(decrease) 1,782 (5,639) ===================== ==================== NASDAQ-100 ---------- Units issued 228,449 69,104 Units redeemed (243,315) (115,955) --------------------- -------------------- Net increase(decrease) (14,866) (46,851) ===================== ==================== Small-Cap --------- Units issued 113,027 121,630 Units redeemed (112,942) (129,659) --------------------- -------------------- Net increase(decrease) 85 (8,029) ===================== ==================== Small-Cap Value --------------- Units issued 1,160 19,816 Units redeemed (1,323) (21,365) --------------------- -------------------- Net increase(decrease) (163) (1,549) ===================== ==================== Classic Dow ----------- Units issued 447,871 2,242,078 Units redeemed (454,028) (2,254,683) --------------------- -------------------- Net increase(decrease) (6,157) (12,605) ===================== ==================== Bear ---- Units issued 818,484 339,075 Units redeemed (816,415) (344,175) --------------------- -------------------- Net increase(decrease) 2,069 (5,100) ===================== ==================== Short NASDAQ ------------ Units issued 908,602 5,087,139 Units redeemed (898,747) (5,084,677) --------------------- -------------------- Net increase(decrease) 9,855 2,462 ===================== ==================== Short Small-Cap --------------- Units issued 826,043 1,147,981 Units redeemed (846,108) (1,133,189) --------------------- -------------------- Net increase(decrease) (20,065) 14,792 ===================== ==================== Short Dow --------- Units issued 315,320 283,269 Units redeemed (315,413) (283,395) --------------------- -------------------- Net increase(decrease) (93) (126) ===================== ==================== FS-85 6. CHANGES IN UNITS OUTSTANDING, continued 2008 2007 --------------------- -------------------- ProFunds, continued: UltraMid -------- Units issued 317,312 754,137 Units redeemed (315,764) (754,040) --------------------- -------------------- Net increase(decrease) 1,548 97 ===================== ==================== UltraOTC -------- Units issued 876,804 2,906,994 Units redeemed (864,909) (2,895,485) --------------------- -------------------- Net increase(decrease) 11,895 11,509 ===================== ==================== UltraSmall ---------- Units issued 564,608 1,925,775 Units redeemed (564,100) (1,919,396) --------------------- -------------------- Net increase(decrease) 508 6,379 ===================== ==================== UltraBull --------- Units issued 981,507 3,045,224 Units redeemed (1,042,292) (2,979,389) --------------------- -------------------- Net increase(decrease) (60,785) 65,835 ===================== ==================== U.S. Gov. Plus -------------- Units issued 395,859 202,273 Units redeemed (423,645) (178,340) --------------------- -------------------- Net increase(decrease) (27,786) 23,933 ===================== ==================== Opportunity ----------- Units issued 1,161,732 735,015 Units redeemed (1,162,697) (742,792) --------------------- -------------------- Net increase(decrease) (965) (7,777) ===================== ==================== Oil & Gas --------- Units issued 32,285 46,683 Units redeemed (32,723) (48,272) --------------------- -------------------- Net increase(decrease) (438) (1,589) ===================== ==================== Precious Metals --------------- Units issued 133,616 60,545 Units redeemed (150,468) (39,794) --------------------- -------------------- Net increase(decrease) (16,852) 20,751 ===================== ==================== Real Estate ----------- Units issued 581 34,904 Units redeemed (3,388) (37,707) --------------------- -------------------- Net increase(decrease) (2,807) (2,803) ===================== ==================== FS-86 6. CHANGES IN UNITS OUTSTANDING, continued 2008 2007 --------------------- -------------------- ProFunds, continued: High Yield ---------- Units issued 9,989 12,105 Units redeemed (10,057) (12,538) --------------------- -------------------- Net increase(decrease) (68) (433) ===================== ==================== Money Market ------------ Units issued 382,081,443 869,122,128 Units redeemed (383,340,220) (873,821,628) --------------------- -------------------- Net increase(decrease) (1,258,777) (4,699,500) ===================== ==================== Pimco: Commodity --------- Units issued 380,935 184,523 Units redeemed (331,313) (137,424) --------------------- -------------------- Net increase(decrease) 49,622 47,099 ===================== ==================== American Century Mid Cap ------- Units issued 107,137 ---- Units redeemed (58,912) ---- --------------------- -------------------- Net increase(decrease) 48,225 ---- ===================== ==================== International ------------- Units issued 143,348 ---- Units redeemed (69,951) ---- --------------------- -------------------- Net increase(decrease) 73,397 ---- ===================== ==================== Franklin Templeton Global Inc. ----------- Units issued 229,987 ---- Units redeemed (109,941) ---- --------------------- -------------------- Net increase(decrease) 120,046 ---- ===================== ==================== MFS Utilities IC ------------ Units issued 21,981 ---- Units redeemed (11,831) ---- --------------------- -------------------- Net increase(decrease) 10,150 ---- ===================== ==================== Research -------- Units issued 7,030 ---- Units redeemed (972) ---- --------------------- -------------------- Net increase(decrease) 6,058 ---- ===================== ==================== FS-87 6. CHANGES IN UNITS OUTSTANDING, continued 2008 2007 --------------------- -------------------- Summit Natural Res ----------- Units issued 21,455 ---- Units redeemed (12,179) ---- --------------------- -------------------- Net increase(decrease) 9,276 ---- ===================== ==================== Zenith ------ Units issued 3,106 ---- Units redeemed (1,019) ---- --------------------- -------------------- Net increase(decrease) 2,087 ---- ===================== ==================== S&P 500 ------- Units issued 2,916 ---- Units redeemed ---- ---- --------------------- -------------------- Net increase(decrease) 2,916 ---- ===================== ==================== T. Rowe Blue Chip --------- Units issued 992,309 ---- Units redeemed (505,348) ---- --------------------- -------------------- Net increase(decrease) 486,961 ---- ===================== ==================== Morgan Stanley Emerging Markets ---------------- Units issued 179,593 ---- Units redeemed (90,667) ---- --------------------- -------------------- Net increase(decrease) 88,926 ---- ===================== ====================
FS-88 AMERITAS LIFE INSURANCE CORP. STATUTORY FINANCIAL STATEMENTS AS OF DECEMBER 31, 2008 AND 2007 AND FOR EACH OF THE THREE YEARS IN THE PERIOD ENDED DECEMBER 31, 2008 SUPPLEMENTAL SCHEDULES AS OF DECEMBER 31, 2008 AND INDEPENDENT AUDITORS' REPORT INDEPENDENT AUDITORS' REPORT To the Board of Directors Ameritas Life Insurance Corp. Lincoln, Nebraska We have audited the accompanying statutory statements of admitted assets, liabilities and capital and surplus of Ameritas Life Insurance Corp. (the Company), a wholly owned subsidiary of Ameritas Holding Company, which is a wholly owned subsidiary of UNIFI Mutual Holding Company, as of December 31, 2008 and 2007, and the related statutory statements of operations, changes in capital and surplus, and cash flows for each of the three years in the period ended December 31, 2008. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statements give retroactive effect to the merger of the Company and LifeRe Insurance Company, which has been accounted for as a statutory merger as described in Note 2 to the financial statements. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. As described more fully in Note 1 to the financial statements, the Company prepared these financial statements using accounting practices prescribed or permitted by the Insurance Department of the State of Nebraska, and such practices differ from accounting principles generally accepted in the United States of America. The effects on such financial statements of the differences between the statutory basis of accounting and accounting principles generally accepted in the United States of America are described in Note 21. In our opinion, because of the effects of the matter discussed in the preceding paragraph, the financial statements referred to above do not present fairly, in conformity with accounting principles generally accepted in the United States of America, the financial position of Ameritas Life Insurance Corp. as of December 31, 2008 and 2007, or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2008. However, in our opinion, the statutory financial statements referred to above present fairly, in all material respects, the admitted assets, liabilities and capital and surplus of Ameritas Life Insurance Corp. as of December 31, 2008 and 2007, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2008, on the basis of accounting described in Note 1. /s/ Deloitte & Touche LLP Lincoln, Nebraska March 17, 2009 AMERITAS LIFE INSURANCE CORP. STATUTORY STATEMENTS OF ADMITTED ASSETS, LIABILITIES AND CAPITAL AND SURPLUS (in thousands)
December 31 -------------------------------------- ADMITTED ASSETS 2008 2007 -------------------------------------- Bonds - unaffiliated $ 1,611,483 $ 1,620,657 Preferred stocks - unaffiliated 24,943 31,921 - affiliated 15,000 17,500 Common stocks - unaffiliated 147,855 207,390 - affiliated 48,909 71,667 Mortgage loans 386,556 370,356 Real estate - properties occupied by the company 27,366 28,417 - properties held for the production of income 36,396 37,446 Cash and cash equivalents (10,572) (10,358) Short-term investments 52,541 25,137 Loans on insurance contracts 108,471 105,747 Partnerships and limited liability companies - real estate 24,396 26,243 Partnerships - joint ventures 68,521 76,401 Other investments - unaffiliated 1,796 3,455 - affiliated (Note 5) 25,000 - Receivable for securities 9,986 8,066 -------------------------------------- Total Cash and Invested Assets 2,578,647 2,620,045 -------------------------------------- Accrued investment income 24,518 24,058 Deferred and uncollected premiums 20,980 20,562 Current federal income taxes receivable - affiliates 25,209 9,377 Deferred tax asset 18,574 15,763 Accounts receivable - affiliates 3,001 1,046 Data processing and other admitted assets 10,063 8,179 Goodwill 3,508 4,587 Separate accounts 2,457,887 3,694,975 -------------------------------------- Total Admitted Assets $ 5,142,387 $ 6,398,592 ====================================== The accompanying notes are an integral part of these statutory financial statements. 2 AMERITAS LIFE INSURANCE CORP. STATUTORY STATEMENTS OF ADMITTED ASSETS, LIABILITIES AND CAPITAL AND SURPLUS (in thousands, except share data) December 31 -------------------------------------- LIABILITIES AND CAPITAL AND SURPLUS 2008 2007 ------------------ ------------------- Policy reserves $ 1,700,868 $ 1,582,907 Deposit-type funds 197,433 109,239 Reserves for unpaid claims 39,454 35,869 Dividends payable to policyowners 10,027 10,171 Interest maintenance reserve - 2,323 Accrued separate account transfers (63,292) (87,191) Asset valuation reserve 4,995 68,603 Accounts payable - affiliates 2,459 2,179 Borrowed money - affiliates 7,491 17,479 Payable for securities 9,639 5,375 Other liabilities 64,801 78,543 Separate accounts 2,457,887 3,694,975 ------------------ ------------------- Total Liabilities 4,431,762 5,520,472 ------------------ ------------------- Common stock, par value $0.10 per share; 25,000,000 shares authorized, issued and outstanding 2,500 2,500 Additional paid-in capital 5,000 5,000 Unassigned surplus 703,125 870,620 ------------------ ------------------- Total Capital and Surplus 710,625 878,120 ------------------ ------------------- Total Liabilities and Capital and Surplus $ 5,142,387 $ 6,398,592 ================== ===================
The accompanying notes are an integral part of these statutory financial statements. 3 AMERITAS LIFE INSURANCE CORP. STATUTORY STATEMENTS OF OPERATIONS (in thousands)
Years Ended December 31 ---------------------------------------------------------- 2008 2007 2006 ------------------- ------------------ ------------------- INCOME Premium income $ 1,299,308 $ 1,089,253 $ 1,155,447 Net investment income 139,432 137,849 134,162 Miscellaneous income 49,794 53,068 50,089 ------------------- ------------------ ------------------- Total income 1,488,534 1,280,170 1,339,698 ------------------- ------------------ ------------------- EXPENSES Benefits to policyowners 1,043,267 922,363 922,421 Change in policy reserves 114,019 14,114 (58,437) Commissions 57,127 60,584 66,725 General insurance expenses 138,710 145,612 123,980 Taxes, licenses and fees 17,239 18,521 15,912 Net premium transferred to separate accounts 89,831 32,454 180,736 ------------------- ------------------ ------------------- Total expenses 1,460,193 1,193,648 1,251,337 ------------------- ------------------ ------------------- Income before dividends, federal income taxes, and realized capital gains (losses) 28,341 86,522 88,361 Dividends appropriated for policyowners 9,995 10,157 10,202 ------------------- ------------------ ------------------- Income before federal income taxes and 18,346 76,365 78,159 realized capital gains (losses) Federal income tax expense 17,530 21,386 23,805 ------------------- ------------------ ------------------- Income from operations before realized capital 816 54,979 54,354 gains (losses) Realized capital gain (losses) on investments, net of tax (benefit) expense of ($28,627), $13,432 and $12,671 and transfers to(from) the interest maintenance reserve of ($5,702), $45 and ($54) in 2008, 2007 and 2006, respectively (72,798) 22,216 18,107 ------------------- ------------------ ------------------- Net income (loss) $ (71,982) $ 77,195 $ 72,461 =================== ================== ===================
The accompanying notes are an integral part of these statutory financial statements. 4 AMERITAS LIFE INSURANCE CORP. STATUTORY STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS FOR THE YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands)
Common Stock Additional --------------------- Paid-in Unassigned Total Shares Amount Capital Surplus Surplus ---------- ---------- ------------- ------------- ------------ BALANCE, January 1, 2006 25,000 $ 2,500 $ 5,000 $ 759,758 $ 767,258 Net income - - - 72,461 72,461 Change in net unrealized gains on investments, net of taxes - - - (22,543) (22,543) Change in net deferred income taxes - - - 2,136 2,136 Change in non-admitted assets - - - 549 549 Change in liability for reinsurance in unauthorized companies 3 3 Cumulative effect of change in accounting principle - - - (676) (676) Change in asset valuation reserve - - - 7,363 7,363 Dividend paid to stockholder - LifeRe Corp. (Note 8) - - - (500) (500) ---------- ---------- ------------- ------------- ------------ BALANCE, December 31, 2006 25,000 $ 2,500 $ 5,000 $ 818,551 $ 826,051 Net income - - - 77,195 77,195 Change in net unrealized gains on investments, net of taxes - - - (15,015) (15,015) Change in net deferred income taxes - - - 4,115 4,115 Change in non-admitted assets - - - (6,761) (6,761) Change in liability for reinsurance in unauthorized companies - - - (26) (26) Correction of error (Note 22) - - - (1,292) (1,292) Change in asset valuation reserve - - - (6,147) (6,147) ---------- ---------- ------------- ------------- ------------ BALANCE, December 31, 2007 25,000 $ 2,500 $ 5,000 $ 870,620 $ 878,120 Net loss - - - (71,982) (71,982) Change in net unrealized gains on investments, net of taxes - - - (37,589) (37,589) Change in net deferred income taxes - - - 16,391 16,391 Change in non-admitted assets - - - (49,095) (49,095) Change in liability for reinsurance in unauthorized companies - - - (1,828) (1,828) Dividend to stockholder - AHC (Note 8) (87,000) (87,000) Change in asset valuation reserve - - - 63,608 63,608 ---------- ---------- ------------- ------------- ------------ BALANCE, December 31, 2008 25,000 $ 2,500 $ 5,000 $ 703,125 $ 710,625 ========== ========== ============= ============= ============
The accompanying notes are an integral part of these statutory financial statements. 5 AMERITAS LIFE INSURANCE CORP. STATUTORY STATEMENTS OF CASH FLOWS (in thousands)
Years Ended December 31 ----------------------------------------------------- 2008 2007 2006 ----------------------------------------------------- OPERATING ACTIVITIES Premium collected net of reinsurance $ 1,300,052 $ 1,088,928 $ 1,155,917 Net investment income received 142,048 142,247 137,057 Miscellaneous income 65,750 67,591 61,097 Benefits paid to policyowners (1,037,835) (917,732) (919,504) Net transfers to separate accounts (67,533) (30,007) (178,620) Commissions, expenses and taxes paid (232,119) (238,076) (215,363) Dividends paid to policyowners (10,222) (10,233) (10,393) Federal income taxes paid (4,734) (46,438) (28,913) ----------------------------------------------------- Net cash from operating activities 155,407 56,280 1,278 ----------------------------------------------------- INVESTING ACTIVITIES Proceeds from investments sold, matured or repaid 435,961 576,114 455,598 Cost of investments acquired (530,336) (655,860) (476,883) Net change in loans on insurance contracts (2,997) (4,021) (1,265) ----------------------------------------------------- Net cash from investing activities (97,372) (83,767) (22,550) ----------------------------------------------------- FINANCING AND MISCELLANEOUS ACTIVITIES Payments on borrowed funds (9,942) (9,942) (2,485) Change in deposit-type funds without life contingencies 84,639 13,880 5,793 Dividends to stockholders (87,000) - (500) Other miscellaneous, net (18,542) (1,724) 4,879 ----------------------------------------------------- Net cash from financing and miscellaneous activities (30,845) 2,214 7,687 ----------------------------------------------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 27,190 (25,273) (13,585) CASH AND CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS - BEGINNING OF YEAR 14,779 40,052 53,637 ----------------------------------------------------- CASH AND CASH EQUIVALENTS AND SHORT- TERM INVESTMENTS - END OF YEAR $ 41,969 $ 14,779 $ 40,052 ===================================================== Non-cash transactions: Note payable to affiliate on subsidiary stock redemption - - 29,825 Mortgage loan foreclosed and transferred to real estate - - 595 Mortgage loan from a real estate partnership basis adjustment due to refinance - - 4,400 Common stock adjustments on dissolution of affiliates - 10,855 45,987
The accompanying notes are an integral part of these statutory financial statements. 6 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 1. Nature of Operations and Summary of Significant Accounting Policies ----------------------------------------------------------------------- Nature of Operations Ameritas Life Insurance Corp. (the Company), a stock life insurance company domiciled in the state of Nebraska, is a wholly owned subsidiary of Ameritas Holding Company (AHC), which is a wholly owned subsidiary of UNIFI Mutual Holding Company (UNIFI). AHC owns three stock life insurance companies, the Company, Acacia Life Insurance Company (Acacia Life) and The Union Central Life Insurance Company (UCL). AHC also wholly-owns Summit Investment Advisors, Inc. (SIA), an advisor providing investment management services. UNIFI is a mutual insurance holding company. Owners of designated policies issued by the Company have a membership interest in UNIFI, while contractual rights remain with the Company. The Company owns 100% of First Ameritas Life Insurance Corp. of New York (FALIC), a New York domiciled life insurance subsidiary, and Pathmark Administrators Inc., a third-party administrator. Ameritas Investment Advisors, Inc. (AIA), an advisor providing investment management services, was wholly owned by the Company until July 1, 2007 when it was sold to AHC and renamed SIA. The Company owns 80% of Ameritas Investment Corp. (AIC), a broker dealer, and the remaining 20% ownership is with Centralife Annuities Services, Inc., a wholly owned subsidiary of Aviva USA (formerly AmerUs Life Insurance Company). Effective July 3, 2007, the Company purchased 100% of the outstanding common stock of LifeRe Corporation, a Texas domiciled holding company, which owned 100% of LifeRe Insurance Company, a Texas domiciled life, accident and health insurance company. On November 7, 2007, LifeRe Corporation was dissolved into the Company whereby the Company became a 100% owner of LifeRe Insurance Company. Effective October 1, 2008, the Company merged with LifeRe Insurance Company. See Note 2 on Statutory Merger information. Effective September 1, 2006, AMAL Corporation (AMAL) repurchased its outstanding shares of stock from Acacia Life and Acacia Financial Corporation (AFCO) and issued two notes payable. On this date, AMAL became a wholly owned subsidiary of the Company. Effective September 30, 2006 AMAL was dissolved into its parent, the Company. Prior to September 1, 2006, the Company owned 85.77% of AMAL, which wholly owned Ameritas Variable Life Insurance Company (AVLIC) (merged with the Company), The Advisors Group, Inc. (TAG), a former broker dealer (dissolved as of December 29, 2006), and a 66.41% interest in Ameritas Investment Corp. (AIC), a broker dealer. Acacia Life companies owned 14.23% of AMAL prior to September 1, 2006. Acacia Life is an insurance company domiciled in the District of Columbia. Acacia Life is a 100% owner of AFCO, which is a holding company comprised of several financial service companies. Principal subsidiaries of AFCO include: Calvert Group Ltd. (Calvert), a provider of investment advisory, management and administrative services to The Calvert Group of mutual funds; Acacia Federal Savings Bank (AFSB), a federally chartered savings bank; and Acacia Realty Corporation, owner of real estate properties. 7 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 1. Nature of Operations and Summary of Significant Accounting Policies, ----------------------------------------------------------------------- (continued) ----------- Nature of Operations, (continued) UCL is an insurance company domiciled in the state of Ohio. UCL's wholly owned subsidiaries include Summit Investment Partners, Inc., an investment advisor (SIP); Carillon Investments, Inc., (prior to June 30, 2006) a broker-dealer (now merged with AIC); PRBA, Inc., the holding company of a pension administration company; Summit Investment Partners, LLC, an investment advisor (liquidated as of July 1, 2007) and Union Central Mortgage Funding, Inc, a mortgage banking business. The Company's insurance operations consist of life and health insurance, annuity, group pension, and retirement contracts. The Company and its subsidiaries operate in all 50 states and the District of Columbia. Basis of Presentation The Company's statutory financial statements are presented on the basis of accounting practices prescribed or permitted by the Insurance Department of the State of Nebraska (the Department). Accounting practices and procedures of the National Association of Insurance Commissioners ("NAIC") as prescribed or permitted by the Department comprise a comprehensive basis of accounting ("NAIC SAP") other than accounting principles generally accepted in the United States of America ("GAAP"). The more significant differences are as follows: (a) Investments in bonds are generally carried at amortized cost or fair value based on their NAIC rating, while under GAAP, they are carried at either amortized cost or fair value based on their classification according to the Company's ability and intent to hold or trade the securities; (b) Investments in common stocks are valued as prescribed by the Securities Valuation Office ("SVO") of the NAIC, while under GAAP, common stocks are reported at fair value; (c) Investments in preferred stocks are carried at cost if the NAIC designation is RP3 and P3 or above. Preferred stocks with NAIC designations of RP4 and P4 or below are carried at the lower of cost or fair value. Under GAAP, preferred stocks are carried at amortized cost or fair value depending upon the characteristics of the security; (d) Subsidiaries are included as common stock carried under the equity method, with the equity in net income (loss) of subsidiaries credited directly to the Company's unassigned surplus for NAIC SAP, while GAAP requires either consolidation or the equity interest in net income of subsidiaries to be credited to the income statement; (e) Investments in limited partnerships, limited liability companies and joint venture investments are accounted for on the GAAP equity method, while under GAAP, such investments are accounted for at cost or the equity method depending upon ownership percentage and control; (f) Acquisition costs, such as commissions and other costs related to acquiring new business, are expensed as incurred, while under GAAP, they are deferred and amortized to income as premiums are earned or in relation to estimated gross profits; 8 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 1. Nature of Operations and Summary of Significant Accounting Policies, ----------------------------------------------------------------------- (continued) ----------- Basis of Presentation, (continued) (g) NAIC SAP requires an amount be recorded for deferred taxes, however, there are limitations as to the amount of deferred tax assets that may be reported as "admitted assets"; and a federal income tax provision is required on a current basis for the statutory statements of operations; (h) Statutory policy reserves are based on mortality and interest assumptions prescribed or permitted by state statutes, without consideration of withdrawals. Statutory policy reserves generally differ from policy reserves under GAAP, which are based on the Company's estimates of mortality, interest and withdrawals; (i) Asset valuation reserves ("AVR") and interest maintenance reserves ("IMR") are established only in the statutory financial statements; (j) Assets are reported under NAIC SAP at "admitted-asset" value and "non-admitted" assets are excluded through a charge against unassigned surplus, while under GAAP, "non-admitted assets" are reinstated to the balance sheet, net of any valuation allowance; (k) Premium receipts and benefits on universal life-type contracts are recorded as income and expense for statutory purposes. Under GAAP, revenues on universal life-type contracts are comprised of contract charges and fees which are recognized when assessed against the policyowner account balance. Additionally, premium receipts on universal life-type contracts are considered deposits and are recorded as interest-bearing liabilities while benefits are recognized as expenses in excess of the policyowner account balance; (l) Reinsurance recoverables on unpaid losses are reported as a reduction of policy reserves, while under GAAP, they are reported as an asset; (m) Comprehensive income and its components are not presented in the statutory financial statements; and (n) Goodwill under GAAP is calculated as the difference between the cost of acquiring the entity and the fair value of the assets received and liabilities assumed. Under NAIC SAP, goodwill is calculated as the difference between the cost of acquiring the entity and the reporting entity's share of the historical book value of the acquired entity; or as the amount that liabilities exceed assets in assumptive reinsurance transactions. However, under NAIC SAP, the amount of goodwill recorded as an "admitted asset" is subject to limitation. Use of Estimates The preparation of financial statements in accordance with statutory accounting practices requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ significantly from those estimates. Material estimates susceptible to significant change include reserves, investment valuations, and income taxes. 9 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 1. Nature of Operations and Summary of Significant Accounting Policies, ----------------------------------------------------------------------- (continued) ----------- Cash Equivalents The Company considers all highly liquid securities purchased with an original maturity of three months or less to be cash equivalents. Investments Investments are reported according to valuation procedures prescribed by the NAIC. Bonds not backed by other loans are generally stated at amortized cost using the interest method, except for those with an NAIC designation of 6, which are stated at the lower of amortized cost or fair value. Mortgage and asset backed securities are stated at either amortized cost or the lower of amortized cost or fair value. Premiums and discounts on mortgage and asset backed bonds and structured securities are amortized using the retrospective method based on anticipated prepayments at the date of purchase. Prepayment assumptions are obtained from broker dealer survey values or internal estimates. Changes in estimated cash flows from the original purchase assumptions are accounted for using the retrospective method. Preferred stocks are stated at cost when the NAIC designation is RP3 and P3 or above and are stated at lower of cost or fair value when the NAIC designation is RP4 and P4 or lower. Common stocks are generally carried at NAIC fair value, except for Federal Home Loan Bank (FHLB) of Topeka common stock which is carried at cost. The change in the stated value is generally recorded as a change in net unrealized losses on investments, a component of unassigned surplus. The Company carries subsidiaries and affiliates as follows: FALIC at audited statutory equity; AFSB, AIC and affiliated mutual funds in which the Company has an interest of 10% or more at the Company's proportionate share of the audited GAAP equity; AIA as non-admitted unaudited GAAP equity (2006 only); and Pathmark at audited GAAP equity with statutory adjustments. Mortgage loans are stated at aggregate carrying value less accrued interest. The Company records a reserve for losses on mortgage loans as part of the AVR. Investments in real estate are stated at the lower of depreciated cost or fair value less encumbrances. The intent to sell a property exists when management has committed to a plan to dispose of the property by sale to an outside party. Short-term investments include all investments whose maturities, at the time of acquisition, are one year or less and are stated at amortized cost, which approximates fair value. Loans on insurance contracts are carried at the unpaid principal balances. If the unpaid balance of the loan exceeds the policy reserves, the excess is considered a non-admitted asset. Investments in real estate partnerships, limited liability companies and joint ventures are carried based on the underlying GAAP equity of the investee with unrealized gains and losses reflected in unassigned surplus. Other than temporary impairments of $6,335, $1,078 and $670 were recorded as realized losses during 2008, 2007 and 2006, respectively. 10 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 1. Nature of Operations and Summary of Significant Accounting Policies, ----------------------------------------------------------------------- (continued) ----------- Investments, (continued) Other investments are primarily an affiliated surplus note, collateral loans, unsecured loans, and low-income housing tax credits carried under the amortized cost method. In 2008, the Company began selling futures contracts to hedge against principal losses on variable annuity contracts with a guaranteed minimum withdrawal benefit rider attached. Futures contracts are a standardized contractual agreement to buy or sell a particular financial instrument at a predetermined price in the future. The gains and losses of futures contracts are derived from the daily movement of the underlying market. These gains and losses are settled in cash through a daily variation margin. The Company sells futures contracts on certain equity indices which expire every 90 days. The Company does not receive cash on the initial sale of the contracts, but will receive or pay cash daily based on the movement of the underlying index. The Company is required to post collateral to the brokering bank. To comply with this requirement, the Company usually posts a short-term treasury bill with the bank. The bank acts as an intermediary to the futures transactions and takes initial margins from both parties to limit the counterparty risk. The collateral is recorded as an asset by the Company included in bonds on the statutory statements of admitted asset, liabilities, and capital and surplus and the book adjusted/carrying value of the collateral recorded at December 31, 2008 is $5,516. Since the futures contracts are not considered an effective hedge, the total variation margin on open contracts is reflected in change in net unrealized gains on investments and totaled $129 for the year ended December 31, 2008. The total variation margin on closed contracts is reflected in net investment income and totaled $2,408 for the year ended December 31, 2008. Investment income consists primarily of interest and dividends. Interest is recognized on an accrual basis and dividends are recorded as earned at the ex-dividend date. Interest income on mortgage-backed and asset-backed securities is determined on the effective yield method based on estimated principal repayments. Accrual of income is suspended for bonds and mortgage loans that are in default or when the receipt of interest payments is in doubt. Realized capital gains and losses are determined on a specific identification basis and recorded in operations. Accrued interest more than 180 days past due deemed collectible on mortgage loans in default is non-admitted. All other investment income due and accrued with amounts over 90 days past due is non-admitted. No amount was excluded from unassigned surplus at December 31, 2008, 2007 and 2006, respectively. Property Property and equipment are carried at cost less accumulated depreciation. The Company provides for depreciation of property and equipment using straight-line and accelerated methods over the estimated useful lives of the assets. Buildings are generally depreciated over forty years. Furniture and fixtures are generally depreciated over three to ten years. Depreciation expense was $3,821, $3,803 and $3,852 for the years ended December 31, 2008, 2007 and 2006 respectively. Maintenance and repairs are charged to expense as incurred. 11 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 1. Nature of Operations and Summary of Significant Accounting Policies, ----------------------------------------------------------------------- (continued) ----------- EDP Equipment and Software Electronic data processing ("EDP") equipment and operating and nonoperating software are carried at cost less accumulated depreciation. Depreciation expense is computed using the straight-line method over the lesser of the estimated useful life of the related asset or three years for EDP equipment and operating system software. Depreciation expense for nonoperating system software is computed using the straight-line method over the lesser of its estimated useful life or five years. Costs incurred for the development of internal use software are capitalized and amortized using the straight-line method over the lesser of the useful lives of the assets or three years. Non-Admitted Assets Certain assets, primarily a portion of deferred tax assets, receivable related to prepaid pension assets, furniture and equipment, nonoperating system software, and negative disallowed interest maintenance reserve are designated as non-admitted under statutory reporting requirements. These assets are excluded from the statutory statements of admitted assets, liabilities and capital and surplus by adjustments to unassigned surplus. Total non-admitted assets were $104,122 and $55,027 as of December 31, 2008 and 2007, respectively. Premiums and Related Commissions Life premiums are recognized as income over the premium paying period of the related policies. Annuity considerations are recognized as income when received. Health premiums are earned ratably over the terms of the related insurance and reinsurance contracts or policies. Consideration received on deposit-type funds, which do not contain any life contingencies, is recorded directly to the related liability. Expenses incurred in connection with acquiring new insurance business, including acquisition costs such as sales commissions, are charged to operations as incurred. Policy Reserves and Deposit-type Funds Life policy reserves provide amounts adequate to discharge estimated future obligations in excess of estimated future premiums on policies in force. Reserves for traditional, flexible premium and commissioned variable life insurance are computed principally by using the Commissioners' Reserve Valuation Method ("CRVM") or the Net Level Premium Method with assumed interest rates and mortality as prescribed by regulatory authorities. Reserves for annuities are calculated using the Commissioners' Annuity Reserve Valuation Method ("CARVM") with appropriate statutory interest and mortality assumptions. Policy reserves include the estimated future obligations for the fixed account options selected by variable life and annuity policyowners; obligations related to variable account options are in the separate accounts. Tabular interest, tabular less actual reserves released and tabular cost for all life contracts are determined based upon statutory regulations. Other policy reserves are established and maintained on the basis of published mortality tables using assumed interest rates and valuation methods as prescribed by the Department. Reserves for deposit-type funds are equal to deposits received and interest credited to the benefit of policyowners, less withdrawals that represent a return to the policyowner. For the determination of tabular interest to deposit-type funds, the valuation interest rate, which varies by issue year, is multiplied by the average funds in force during the year subject to such valuation interest rate. 12 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 1. Nature of Operations and Summary of Significant Accounting Policies, ----------------------------------------------------------------------- (continued) ----------- Reserves for Unpaid Claims The reserves for unpaid group dental and vision claims are estimated using historic claim lags, and then adjusted upward or downward based on the current level of pending/unprocessed claims relative to the historic level of pended/unprocessed claims during the time period used in generating the claim lag factors. The reserves for unpaid claims for group dental and vision insurance includes claims in course of settlement and incurred but not reported claims. Claim adjustment expenses corresponding to the unpaid claims are accounted for by adding an additional load to the reserve for unpaid claims. To the extent the ultimate liability differs from the amounts recorded, such differences are reflected in operations when additional information becomes known. Reserves for unpaid life claims include claims reported and unpaid and claims not yet reported, which is estimated based upon historical experience. As such amounts are necessarily estimates, the ultimate liability will differ from the amount recorded and will be reflected in operations when additional information becomes known. Dividends to Policyowners A portion of the Company's business has been issued on a participating basis. The amount of insurance in force on individual life participating policies was $2,769,840 or 14.1% and $3,549,574 or 17.1% of the individual life policies in force as of December 31, 2008 and 2007, respectively. The Company distributed dividends in the amount of $10,138, $10,247 and $10,421 to policyowners and did not allocate any additional income to such policyowners for the years ended December 31, 2008, 2007 and 2006, respectively. Accrued Separate Account Transfers Accrued separate account transfers primarily consist of the amount of policyowner account values over modified reserves used in the separate account, such as the use of CARVM and CRVM. Asset Valuation and Interest Maintenance Reserves The AVR is a required appropriation of unassigned surplus to provide for possible losses that may occur on certain investments of the Company. The reserve is computed based on holdings of all investments and realized and unrealized gains and losses, other than those resulting from interest rate changes. Changes in the reserve are charged or credited to unassigned surplus. The IMR is calculated based on the prescribed methods developed by the NAIC. Realized gains and losses, net of tax, resulting from interest rate changes on fixed income investments are deferred and credited to this reserve. These gains and losses are then amortized into investment income over what would have been the remaining years to maturity of the underlying investment. Amortization included in net investment income was $79, $508 and $383 for 2008, 2007 and 2006, respectively. Income Taxes The Company files a life/non-life consolidated tax return with UNIFI and UNIFI includible affiliates and is party to a federal income tax allocation agreement. The Company's income tax allocation is based upon a written agreement which generally specifies separate income tax return calculations with current credit for net operating losses and/or credits which are used to reduce the portion of the consolidated income tax liability. 13 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 1. Nature of Operations and Summary of Significant Accounting Policies, ----------------------------------------------------------------------- (continued) ----------- Income Taxes, (continued) The Company is subject to tax-related audits in the normal course of operations. The Company records a contingency for these tax-related matters when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company reviews its loss contingencies on an ongoing basis to ensure that the Company has appropriate reserves recorded on the statutory statements of admitted assets, liabilities and capital and surplus. These reserves are based on judgment made by management with respect to the likely outcome of these matters. The Company's judgment could change based on new information, Internal Revenue Service examinations and changes in laws or regulations. The statute of limitations, generally, is closed for the Company through December 31, 2002. In 2007, the Internal Revenue Service completed and settled an examination for the federal income tax returns of the Company and Acacia Life and their affiliates for the tax years of 2004 and 2003. The Company's management has determined that the settlement is not material. Separate Accounts The Company issues variable annuities, variable life contracts, and experience-rated group annuities, the assets and liabilities of which are legally segregated and recorded in the accompanying statutory statements of admitted assets, liabilities and capital and surplus as assets and liabilities of the separate accounts. Absent any contract provision wherein the Company guarantees either a minimum return or account value upon death or annuitization, the net investment experience of the separate account is credited directly to the policyowner and can be positive or negative. Mortality, policy administration and surrender charges to all separate accounts are included in miscellaneous income in the statutory statements of operations. The assets of separate accounts relating to variable annuity, variable life contracts and experience-rated group annuities are carried at fair value and consist primarily of mutual funds held for the benefit of policyowners. Deposits received from, and benefits paid, to separate account policyowners which were invested in the fixed account are recorded as an increase in, or a direct charge to, policy reserves. Investment income and realized and unrealized capital gains and losses related to the assets which support the variable annuity, variable life contracts and experience-rated group annuities are not reflected in the Company's statutory statements of operations. Vulnerability due to Certain Concentrations The Company operates in a business environment which is subject to various risks and uncertainties. Such risks and uncertainties include, but are not limited to, interest rate risk, market risk, credit risk and legal and regulatory changes. Federal legislation has allowed banks and other financial organizations to have greater participation in securities and insurance businesses. This legislation may present an increased level of competition for sales of the Company's products. Furthermore, the market for deferred annuities and interest-sensitive life insurance is enhanced by the tax incentives available under current law. Any legislative changes that lessen these incentives are likely to negatively impact the demand for these products. The demand for life insurance products that are used to address a customer's estate planning needs may be impacted to the extent any legislative changes occur to the current estate tax laws. 14 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 1. Nature of Operations and Summary of Significant Accounting Policies, ----------------------------------------------------------------------- (continued) ----------- Vulnerability due to Certain Concentrations, (continued) During 2008 and 2007, decreased liquidity in certain markets adversely impacted the fair value of the Company's investments, in particular mortgage-backed, asset-backed and corporate bonds. The Company anticipates these conditions will continue over the next year and will continue to evaluate the reasonableness of the fair value of the impacted securities by comparison to alternative market sources along with consideration of credit spreads for similar securities and the characteristics and performance of the underlying collateral. Accounting Pronouncements TREATMENT OF CASH FLOWS WHEN QUANTIFYING CHANGES IN VALUATIONS AND IMPAIRMENTS, AN AMENDMENT TO SSAP No. 43 - LOAN BACKED AND STRUCTURED SECURITIES. STATEMENT OF STATUTORY ACCOUNTING PRINCIPLE NO. 98. Effective for quarterly and annual reporting beginning on or after January 1, 2009, the Company will adopt SSAP No. 98, "Treatment of Cash Flows When Quantifying Changes in Valuations and Impairments, an Amendment to SSAP No. 43 - Loan Backed and Structured Securities". This statement establishes statutory accounting principles for impairment analysis and subsequent valuation of loan-backed and structured securities. Under the provisions of SSAP No. 98, structured securities with other than temporary impairments (OTTI) are written down to the securities' fair value, whereas under SSAP No. 43, such OTTI losses would be written down to the sum of the estimated future cash flows. A change resulting from the adoption of this statement shall be accounted for prospectively. The adoption of this statement is not anticipated to have material impact on the financial statements. SETTLEMENT REQUIREMENTS FOR INTERCOMPANY TRANSACTIONS, AN AMENDMENT TO SSAP NO. 25 - ACCOUNTING FOR AND DISCLOSURES ABOUT TRANSACTIONS WITH AFFILIATES AND OTHER RELATED PARTIES. STATEMENT OF STATUTORY ACCOUNTING PRINCIPLE NO. 96. Effective January 1, 2007, the Company adopted SSAP No. 96, "Settlement Requirements for Intercompany Transactions, An Amendment to SSAP No. 25 - Accounting for and Disclosures about Transactions with Affiliates and Other Related Parties". This statement required transactions between related parties to be in the form of a written agreement and the agreement must provide for timely settlement of amounts owed. The adoption of this statement did not have a material impact on the financial statements. INVESTMENTS IN SUBSIDIARY, CONTROLLED AND AFFILIATED ENTITIES, A REPLACEMENT OF SSAP NO. 88. STATEMENT OF STATUTORY ACCOUNTING PRINCIPLE NO. 97. Effective January 1, 2007, the Company adopted SSAP No. 97, "Investments in Subsidiary, Controlled and Affiliated Entities, A Replacement of SSAP No. 88". This statement provided additional guidance on the audit requirements for subsidiaries. The adoption of this statement did not have a material impact on the financial statements. 15 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 1. Nature of Operations and Summary of Significant Accounting Policies, ----------------------------------------------------------------------- (continued) ----------- Accounting Pronouncements, (continued) ACCOUNTING FOR LOW INCOME HOUSING TAX CREDIT PROPERTY INVESTMENTS, STATEMENT OF STATUTORY ACCOUNTING PRINCIPLE NO. 93 Effective January 1, 2006, the Company adopted SSAP No. 93, "Accounting for Low Income Housing Tax Credit Property Investments". This statement establishes the valuation method for recording investments in low income housing tax credit properties. As a result, the cumulative effect of the change in accounting principle from implementing SSAP No. 93 was a reduction in unassigned surplus of $676 which was comprised of a reduction to other investments of $788 and a reduction to the AVR beginning balance of $112. The Company has up to 7 remaining years of unexpired tax credits and is required to hold these investments for up to 11 years. The prior period has not been restated as it was not permitted by SSAP No. 93. 2. Statutory Merger and Business Combination --------------------------------------------- The Company merged with LifeRe, a wholly owned subsidiary of the Company, on October 1, 2008. This transaction was accounted for as a statutory merger. No additional shares of the Company were issued. Prior years have been adjusted to reflect comparative merged company financial information. The following information is provided "as if" the merger occurred at January 1, 2006:
2007 ----------------------------------------------------------------------------------------- Ameritas Life LifeRe As Previously As Previously Ameritas Life Reported Reported Eliminations As Merged ------------------------------------------------------------------------------------------------------------------- Income $ 1,246,445 $ 33,725 $ - $ 1,280,170 Net Income 77,665 (470) - 77,195 Total Capital and Surplus 878,120 11,386 (11,386) 878,120 ------------------------------------------------------------------------------------------------------------------- 2006 ----------------------------------------------------------------------------------------- Ameritas Life LifeRe As Previously As Previously Ameritas Life Reported Reported Eliminations As Merged ------------------------------------------------------------------------------------------------------------------- Income $ 1,308,148 $ 31,550 $ - $ 1,339,698 Net Income 70,645 1,816 - 72,461 Total Capital and Surplus 814,236 11,815 - 826,051 -------------------------------------------------------------------------------------------------------------------
16 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 2. Statutory Merger and Business Combination, (continued) --------------------------------------------------------- In 2007, the Company paid $21,262 in cash for the purchase of the outstanding common stock of LifeRe Corporation. The transaction was accounted for as a statutory purchase and resulted in goodwill recorded in the investment carrying value in the amount of $11,331. Goodwill amortization relating to this purchase was $2,518 for the year ended December 31, 2007 and written off in 2007 upon the dissolution of LifeRe Corporation (see Note 5). 3. Investments -------------- Bonds The table below provides additional information relating to bonds held at December 31, 2008:
Gross Gross Cost or Unrealized Unrealized Amortized Cost Gains Losses Fair Value --------------------------------------------------------------------------------------------------- Bonds: U.S. Governments $ 167,554 $ 9,780 $ 156 $ 177,178 All Other Governments 585 15 - 600 Special Revenue & Special Assessment Obligations and all Non-Guaranteed Obligations of Agencies and Authorities of Governments and Their Political Subdivisions 195,376 3,910 30 199,256 Public Utilities (Unaffiliated) 108,314 1,016 6,662 102,668 Industrial & Miscellaneous (Unaffiliated) 1,142,801 9,541 124,785 1,027,557 ------------------------------------------------------------------------------------------------------------------- Total Bonds $ 1,614,630 $ 24,262 $ 131,633 $ 1,507,259 =================================================================================================================== 17 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 3. Investments, (continued) ---------------------------- Bonds, (continued) The table below provides additional information relating to bonds held at December 31, 2007: Gross Gross Cost or Unrealized Unrealized Amortized Cost Gains Losses Fair Value --------------------------------------------------------------------------------------------------- Bonds: U.S. Governments $ 199,187 $ 6,123 $ 623 $ 204,687 All Other Governments 1,428 28 - 1,456 Special Revenue & Special Assessment Obligations and all Non-Guaranteed Obligations of Agencies and Authorities of Governments and Their Political Subdivisions 200,613 1,111 1,189 200,535 Public Utilities (Unaffiliated) 101,460 1,900 971 102,389 Industrial & Miscellaneous (Unaffiliated) 1,117,969 24,720 13,678 1,129,011 ------------------------------------------------------------------------------------------------------------------- Total Bonds $ 1,620,657 $ 33,882 $ 16,461 $ 1,638,078 ===================================================================================================================
At December 31, 2008 and 2007, the amortized cost of bonds was reduced by $3,147 and $0, respectively, of cumulative fair value adjustments on bonds rated NAIC "6" to derive the carrying amounts of bonds in the statutory statements of admitted assets, liabilities and capital and surplus of $1,611,483 and $1,620,657, respectively. The cost or amortized cost and fair value of bonds at December 31, 2008 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Cost or Fair Value Amortized Cost ------------------------------------------------------------------------------------------------------------------- Due in one year or less $ 61,046 $ 61,176 Due after one year through five years 426,030 412,113 Due after five years through ten years 660,471 614,830 Due after ten years 351,362 302,271 Bonds with multiple repayment dates 115,721 116,869 ------------------------------------------------------------------------------------------------------------------- Total Bonds $ 1,614,630 $ 1,507,259 ===================================================================================================================
Sales of bond investments in 2008, 2007 and 2006 resulted in proceeds of $43,359, $93,497 and $35,770, respectively, on which the Company realized gross gains of $1,436, $3,474 and $983, respectively, and gross losses of $6,879, $473 and $520, respectively. 18 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 3. Investments, (continued) ---------------------------- Bonds and Stocks An aging of unrealized losses on the Company's investments in bonds, preferred stocks - unaffiliated and common stocks - unaffiliated were as follows:
December 31, 2008 ----------------------------------------------------------------------------- Less than 12 months 12 months or more Total ------------------------- ------------------------- ------------------------- Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses ------------------------------------------------------------------------------------------------------------------- Bonds: U.S. Governments $ 3,242 $ 76 $ 4,166 $ 80 $ 7,408 $ 156 Special Revenue & Special Assessment Obligations and all Non-Guaranteed Obligations of Agencies and Authorities of Governments and Their Political Subdivisions 4,837 24 2,236 5 7,073 30 Public Utilities (Unaffiliated) 61,037 4,179 15,301 2,483 76,338 6,662 Industrial & Miscellaneous (Unaffiliated) 615,479 76,444 117,880 48,342 733,359 124,785 ------------------------------------------------------------------------------------------------------------------- Total Bonds 684,595 80,723 139,583 50,910 824,178 131,633 ------------------------------------------------------------------------------------------------------------------- Preferred Stocks (Unaffiliated) 9,907 4,425 4,465 3,314 14,372 7,739 Common Stocks (Unaffiliated) 54,804 9,407 699 489 55,503 9,896 ------------------------------------------------------------------------------------------------------------------- Total $ 749,306 $ 94,555 $ 144,747 $ 54,713 $ 894,053 $ 149,268 ------------------------------------------------------------------------------------------------------------------- December 31, 2007 ----------------------------------------------------------------------------- Less than 12 months 12 months or more Total ------------------------- ------------------------- ------------------------- Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses ------------------------------------------------------------------------------------------------------------------- Bonds: U.S. Governments $ 36,069 $ 203 $ 21,318 $ 420 $ 57,387 $ 623 Special Revenue & Special Assessment Obligations and all Non-Guaranteed Obligations of Agencies and Authorities of Governments and Their Political Subdivisions 13,931 107 81,004 1,082 94,935 1,189 Public Utilities (Unaffiliated) 21,157 252 27,421 719 48,578 971 Industrial & Miscellaneous (Unaffiliated) 212,128 7,274 237,062 6,404 449,190 13,678 ------------------------------------------------------------------------------------------------------------------- Total Bonds 283,285 7,836 366,805 8,625 650,090 16,461 ------------------------------------------------------------------------------------------------------------------- Preferred Stocks (Unaffiliated) 13,374 785 - - 13,374 785 Common Stocks (Unaffiliated) 59,100 4,710 1,212 240 60,312 4,950 ------------------------------------------------------------------------------------------------------------------- Total $ 355,759 $ 13,331 $ 368,017 $ 8,865 $ 723,776 $ 22,196 -------------------------------------------------------------------------------------------------------------------
19 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 3. Investments, (continued) ---------------------------- Bonds and Stocks, (continued) The Company regularly reviews its investment portfolio for factors that may indicate that a decline in fair value of an investment is other than temporary. Based on an evaluation of the prospects of the issuers, including, but not limited to, the Company's intentions to sell or ability to hold the investments; the length of time and magnitude of the unrealized loss; and the credit ratings of the issuers of the investments in the above bonds, the Company has concluded that the declines in the fair values of the Company's investments in bonds at December 31, 2008 or 2007 are temporary. For substantially all preferred stocks - unaffiliated and common stocks - unaffiliated securities with an unrealized loss greater than 12 months, such unrealized loss was less than 25% of the Company's carrying value of each preferred stock or common stock security. The Company considers various factors when considering if a decline in the fair value of a preferred stock and common stock security is other than temporary, including but not limited to, the length of time and magnitude of the unrealized loss; the volatility of the investment; analyst recommendations and price targets; opinions of the Company's investment managers; market liquidity; and the Company's intentions to sell or ability to hold the investments. Based on an evaluation of these factors, the Company has concluded that the declines in the fair values of the Company's investments in both unaffiliated preferred stocks and common stocks at December 31, 2008 or 2007 are temporary. During 2008, the Company recorded $8,980 of other than temporary impairments as additional realized loss. The Company's bond and short-term investment portfolios are predominantly comprised of investment grade securities. At December 31, 2008 and 2007, bonds totaling $88,750 and $68,903, respectively, (5.3% and 4.2%, respectively, of the total bond and short-term portfolios) are considered "below investment grade". Securities are classified as "below investment grade" by utilizing rating criteria established by the NAIC. During 2008, 2007 and 2006, the Company recorded realized losses for other than temporary impairments on bonds of $36,072, $1,657 and $1,890, respectively. The Company has an exposure to subprime mortgage loans within its total investments in residential mortgage backed securities (RMBS). The Company manages its exposure to subprime mortgage loans in several ways. First, the Company monitors its exposure level to RMBS against defined restrictions prescribed by its Investment Policy. Restrictions include exposure at the aggregate level to RMBS along with exposure to ratings classes and subsectors. Also, the Company continually tracks subprime RMBS for factors including credit performance, rating agency actions, prepayment trends and de-levering. Loans with trends that may indicate underperformance are monitored closely for any further deterioration that may result in action by the Company. As of December 31, 2008 and 2007, the Company's total investment in RMBS represents securities with an adjusted cost basis of $44,516 and $66,367 and a fair value of $15,948 and $62,965, respectively. As of December 31, 2008 and 2007, the Company's subprime exposure related to subprime RMBS represents securities with an adjusted cost basis of $3,010 and $3,485 and a fair value of $2,640 and $3,600, respectively. 20 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 3. Investments, (continued) ---------------------------- Mortgage Loans The Company invests in mortgage loans collateralized principally by commercial real estate. The maximum and minimum lending rates for mortgage loans issued during 2008 are 6.83% and 5.85%. The maximum percentage of any one loan to the value of security at the time the loan was originated, exclusive of insured, guaranteed or purchase money mortgages, was 75% with the exception of two loans for which the portion exceeding 75% is admitted under investment "basket" provisions. The Company has not included taxes, assessments or other amounts advanced in mortgage loans at December 31, 2008, 2007 and 2006. The Company's mortgage loans finance various types of commercial and multi-family residential properties throughout the United States. The geographic distributions of the mortgage loans at December 31, 2008 and 2007 are as follows:
2008 2007 ------------------------------------------------------------------------------------------------------------------- California $ 47,082 $ 44,024 Minnesota 31,483 25,363 Ohio 29,074 25,281 Utah 24,036 25,533 Oregon 21,480 16,174 Texas 21,346 21,086 Oklahoma 20,845 21,775 All other states 191,210 191,120 ------------------------------------------------------------------------------------------------------------------- $ 386,556 $ 370,356 ===================================================================================================================
At December 31, 2008, 2007 and 2006, the Company does not have any impaired mortgage loans or interest income on impaired mortgage loans. Interest income on impaired mortgage loans is generally recognized on a cash basis. Fair Value of Financial Instruments The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments: Bonds and Preferred Stocks-Unaffiliated - The fair values for bonds and preferred stocks are based on quoted market prices, where available. For bonds and preferred stocks not actively traded, fair values are estimated using values obtained from independent pricing services or internally derived based on expected future cash flows using a current market rate applicable to the yield, credit quality and maturity of the investments. The fair values of mortgage and asset backed securities are estimated using values obtained from independent pricing services or internally derived based on expected future cash flows using a current market rate applicable to the yield, credit quality and maturity of the investments. Preferred Stocks-Affiliated - The carrying amounts approximate fair value. Common Stocks - For publicly traded securities and affiliated mutual funds, fair value is obtained from independent pricing services or fund managers. For stock in FHLB carrying amount approximates fair value. Stocks in affiliates carried on the equity method are not included as part of the fair value disclosure. 21 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 3. Investments, (continued) ---------------------------- Fair Value of Financial Instruments, (continued) Mortgage Loans - The fair values for mortgage loans are estimated using discounted cash flow calculations which are based on interest rates currently being offered for similar loans to borrowers with similar credit ratings, credit quality, and maturity of the investments. Loans that exceed 100% loan-to-value are valued at the estimated fair value of the underlying collateral. Cash and Cash Equivalents, Short-term Investments, Other Investments, and Accrued Investment Income - The carrying amounts for these instruments approximate their fair values due to the short maturity of these investments, except when an instrument becomes other than temporarily impaired and a new cost basis has been recognized. The fair value for these instruments becomes their new cost basis. The fair value of the affiliated surplus note included in other investments was internally derived based on expected future cash flows using a current market rate applicable to the yield, credit quality and maturity of the note. Loans on Insurance Contracts - The fair values for loans on insurance contracts are estimated using discounted cash flow analysis at interest rates currently offered for similar loans. Loans on insurance contracts with similar characteristics are aggregated for purposes of the calculations. Deposit-Type Funds - Deposit-type funds which do not have fixed maturities are carried at the amount payable on demand at the reporting date. Borrowed money - The fair value is estimated using discounted cash flow analyses based on current incremental borrowing rates for similar types of borrowing arrangements. Separate Account Assets and Liabilities - The fair values of separate account assets are based upon net asset values provided by the fund managers. Separate account liabilities are carried at the fair value of the underlying assets. 22 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 3. Investments, (continued) ---------------------------- Fair Value of Financial Instruments, (continued) The book/adjusted carrying value and fair value of financial instruments at December 31 are as follows:
2008 2007 ------------------------------------------------------------------- Book/Adjusted Book/Adjusted Carrying Value Fair Value Carrying Value Fair Value ------------------------------------------------------------------------------------------------------------------- Financial Assets: Bonds $ 1,611,483 $ 1,507,259 $ 1,620,657 $ 1,638,078 Preferred stocks - unaffiliated 24,943 17,264 31,921 31,507 Preferred stocks - affiliated 15,000 15,000 17,500 17,500 Common stocks - unaffiliated 147,855 147,855 207,390 207,390 Common stocks - affiliated 732 732 - - Mortgage loans 386,556 405,865 370,356 380,775 Cash and cash equivalents (10,572) (10,572) (10,358) (10,358) Short-term investments 52,541 52,541 25,137 25,137 Loans on insurance contracts 108,471 105,537 105,747 104,421 Other investments - unaffiliated 1,796 1,796 3,455 3,455 Other investments - affiliated 25,000 13,112 - - Accrued investment income 24,518 24,518 24,058 24,058 Assets related to separate accounts 2,457,887 2,457,887 3,694,975 3,694,975 Financial Liabilities: Deposit-type funds $ 197,433 $ 197,433 $ 109,239 $ 109,239 Borrowed money - affiliates 7,491 7,484 17,479 17,526 Liabilities related to separate accounts 2,457,887 2,457,887 3,694,975 3,694,975 -------------------------------------------------------------------------------------------------------------------
Fair Value Measurements of Financial Instruments Included in various investment related line items in the 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 stock when carried at the lower of cost or market. The fair value of an asset is the amount at which that asset could be bought or sold in a current transaction between willing parties, that is, other than in a forced or liquidation sale. Fair values are based on quoted market prices when available. When market prices are not available, fair value is generally estimated using discounted cash flow analyses, incorporating current market inputs for similar financial instruments with comparable terms and credit quality (matrix pricing). In instances where there is little or no market activity for the same or similar instruments, the Company estimates fair value using methods, models and assumptions that management believes market participants would use to determine a current transaction price. These valuation techniques involve some level of management estimation and judgment which becomes significant with increasingly complex instruments or pricing models. Where appropriate, adjustments are included to reflect the risk inherent in a particular methodology, model or input used. 23 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 3. Investments, (continued) ---------------------------- Fair Value Measurements of Financial Instruments, (continued) The Company's financial assets carried at fair value have been classified, for disclosure purposes, based on a hierarchy defined by GAAP Statement of Financial Accounting Standard (SFAS) No. 157, "Fair Value Measurements". The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An asset's classification is based on the lowest level input that is significant to its fair value measurement in its entirety. In summary, the levels of the fair value hierarchy are as follows: o Level 1 - Values are unadjusted quoted prices for identical assets in active markets accessible at the measurement date. o Level 2 - Inputs include quoted prices for similar assets in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are observable or can be corroborated by market data for the term of the instrument. Such inputs include market interest rates and volatilities, spreads and yield curves. o Level 3 - Certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Company's best estimate of what hypothetical market participants would use to determine a transaction price for the asset at the reporting date. The following table provides information about the Company's assets measured at fair value on a recurring basis by the SFAS 157 levels described above as of December 31, 2008:
Level 1 Level 2 Level 3 Total ------------------------------------------------------------------------------------------------------------------- Assets: Common stocks - unaffiliated $ 136,288 $ - $ 6,664 $ 142,952 Common stocks - affiliated 732 - - 732 ------------------------------------------------------------------------------------------------------------------- Subtotal excluding assets related to separate accounts 137,020 - 6,664 143,684 Assets related to separate accounts 2,457,822 - - 2,457,822 ------------------------------------------------------------------------------------------------------------------- Total assets accounted for at fair market value $ 2,594,842 $ - $ 6,664 $ 2,601,506 -------------------------------------------------------------------------------------------------------------------
Fair values and changes in the fair values of separate account assets generally accrue directly to the policyholders and are not included in the Company's revenues and expenses or surplus. The following valuation techniques used to measure the fair values by type of investment in the above table follow: Level 1 - Financial Assets These assets include actively-traded exchange-listed equity securities - unaffiliated and affiliated and mutual funds. Unadjusted quoted prices for these securities are provided to the Company by independent pricing services. Separate account assets in Level 1 include actively-traded institutional and retail mutual fund investments where fair value represent net asset values received from fund managers who stand ready to transact at the quoted values. 24 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 3. Investments, (continued) ---------------------------- Fair Value Measurements of Financial Instruments, (continued) Level 2 - Financial Assets As of December 31, 2008, there were no financial assets measured at fair value on a recurring basis in Level 2. Level 3 - Financial Assets The Company classifies common stock accounted for under the cost method in Level 3 as internal valuations are required. The following table summarizes changes to our financial instruments for the year ended December 31, 2008 carried at fair value for which the Company used significant unobservable inputs (Level 3) to determine fair value measurements:
Common stocks - unaffiliated ------------------------------------------------------------------------------------------------------------------- Fair value at January 1, 2008 $ 3,700 Total gains or losses (realized and unrealized) Included in net income - Included in unassigned surplus 2,964 Purchases, sales, issuances, and settlements - Transfers in/out of Level 3 - ------------------------------------------------------------------------------------------------------------------- Fair value at December 31, 2008 $ 6,664 -------------------------------------------------------------------------------------------------------------------
Certain financial assets are measured at fair value on a non-recurring basis, such as certain bonds and preferred stock valued at the lower of cost or fair value, or investments that are impaired during the reporting period and recorded at fair value on the statutory statements of admitted assets, liabilities and capital and surplus at December 31, 2008. The following table summarizes the assets measured at fair value on a non-recurring basis as of December 31, 2008 and the total realized/unrealized losses for 2008:
Level 1 Level 2 Level 3 Total Total Realized /Unrealized Losses -------------------------------------------------------------------------------------------------------------------- Bonds $ - $ 9,191 $ 4,022 $ 13,213 $ (31,390) Preferred Stocks $ - $ 1,200 $ - $ 1,200 $ (1,747) --------------------------------------------------------------------------------------------------------------------
The bonds measured at fair value on a non-recurring basis include NAIC 6 designated bonds totaling $474 and impaired bonds totaling $12,739. The preferred stocks recorded at fair value as a non-recurring basis were due to impairments. The $4,022 of bonds classified as Level 3 were valued based on uncorroborated dealer quotes or internal valuation using unobservable inputs. 25 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 4. Income Taxes ---------------- The following are federal income taxes incurred in the current and prior years that will be available for recoupment in the event of future losses: 2008 $ - 2007 32,363 2006 37,944 The Company had a $48 net capital loss and $273 net operating loss carryforward, as a result of the merger with LifeRe at December 31, 2008. The net capital loss and net operating loss will expire in 2011 and 2021, respectively. The Company, as a result of the LifeRe merger, has alternative minimum tax credit carryforwards of approximately $336. Federal income taxes incurred at December 31 consist of the following major components:
2008 2007 2006 ------------------------------------------------------------------------------------------------------------------- Current federal income taxes Operations $ 17,530 $ 21,386 $ 23,805 Capital gains (losses) (28,627) 13,432 12,671 Correction of error (see Note 22) - (696) - ------------------------------------------------------------------------------------------------------------------- (11,097) 34,122 36,476 Change in net deferred income taxes (16,391) (4,115) (2,136) ------------------------------------------------------------------------------------------------------------------- Total federal income taxes incurred $ (27,488) $ 30,007 $ 34,340 =================================================================================================================== The difference between the U.S. federal income tax rate and the federal income taxes incurred at December 31 is summarized as follows: 2008 2007 2006 ------------------------------------------------------------------------------------------------------------------- Income before federal income taxes and realized capital $ 18,346 $ 76,365 $ 78,159 gains (losses) Net realized capital gains (losses) before federal income taxes and transfers to IMR (107,127) 35,693 30,724 Correction of error (see Note 22) - (1,988) - ------------------------------------------------------------------------------------------------------------------- Total pretax income (loss) (88,781) 110,070 108,883 Change in non-admitted assets (12,946) (6,547) (1,040) Tax exempt income (7,966) (10,784) (11,467) Nondeductible expenses (2,969) (107) 5,354 Change in accounting principle - - (788) Other (3,809) (4,526) (1,506) ------------------------------------------------------------------------------------------------------------------- (116,471) 88,106 99,436 Statutory tax rate 0.35 0.35 0.35 ------------------------------------------------------------------------------------------------------------------- (40,765) 30,837 34,803 Change in federal income tax reserve 13,729 (647) 221 Small company deduction - - (481) Tax credits (452) (183) (203) ------------------------------------------------------------------------------------------------------------------- Total federal income taxes incurred $ (27,488) $ 30,007 $ 34,340 =================================================================================================================== 26 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 4. Income Taxes, (continued) ----------------------------- The items that give rise to deferred tax assets and liabilities at December 31 relate to the following: 2008 2007 ------------------------------------------------------------------------------------------------------------------- Deferred tax assets: Unrealized investment losses $ 9,633 $ 3,008 Deferred policy acquisition costs 17,510 18,061 Future policy and contract benefits 16,899 6,821 Policyowner dividends 3,510 3,560 Acacia Life Insurance Company distribution 2,026 2,420 Pension and postretirement benefits 9,517 10,884 Non-admitted assets 18,285 13,753 Net operating/net capital and credits 449 - Other 3,259 1,958 ------------------------------------------------------------------------------------------------------------------- Gross deferred tax assets 81,088 60,465 ------------------------------------------------------------------------------------------------------------------- Deferred tax liabilities: Unrealized investment gains 849 18,365 Acacia National Life Insurance Company inforce 807 1,134 Other 12,436 9,471 ------------------------------------------------------------------------------------------------------------------- Gross deferred tax liabilities 14,092 28,970 ------------------------------------------------------------------------------------------------------------------- Net deferred tax asset 66,996 31,495 Less: non-admitted deferred tax assets 48,422 15,732 ------------------------------------------------------------------------------------------------------------------- Net admitted deferred tax asset $ 18,574 $ 15,763 =================================================================================================================== Increase in deferred tax assets non-admitted $ 32,690 $ 1,101 =================================================================================================================== 27 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 4. Income Taxes, (continued) ----------------------------- The change in net deferred income taxes is comprised of the following: December 31 2008 2007 Change ------------------------------------------------------------------------------------------------------------------- Gross deferred tax assets $ 81,088 $ 60,465 $ 20,623 Gross deferred tax liabilities 14,092 28,970 (14,878) ------------------------------------------------------------------------------------------------------------------- Net deferred tax asset $ 66,996 $ 31,495 35,501 ================================================================================================= Tax effect of unrealized gains (19,110) ------------------- Change in net deferred income tax $ 16,391 =================== December 31 2007 2006 Change ------------------------------------------------------------------------------------------------------------------- Gross deferred tax assets $ 60,465 $ 57,166 $ 3,299 Gross deferred tax liabilities 28,970 27,713 1,257 ------------------------------------------------------------------------------------------------------------------- Net deferred tax asset $ 31,495 $ 29,453 2,042 ================================================================================================= Tax effect of unrealized gains 2,073 ------------------- Change in net deferred income tax $ 4,115 =================== December 31 2006 2005 Change ------------------------------------------------------------------------------------------------------------------- Gross deferred tax assets $ 57,166 $ 55,676 $ 1,490 Gross deferred tax liabilities 27,713 24,318 3,395 ------------------------------------------------------------------------------------------------------------------- Net deferred tax asset $ 29,453 $ 31,358 (1,905) ================================================================================================= Tax effect of unrealized gains 4,041 ------------------- Change in net deferred income tax $ 2,136 ===================
The Company files income tax returns with the Internal Revenue Service and various state tax jurisdictions. From time to time, the Company is subject to routine audits by those agencies and those audits may result in proposed adjustments. The Company has considered the alternative interpretations that may be assumed by the various taxing agencies and believes its positions taken regarding its filings are valid. Based upon review of the Company's tax contingencies, the reserve held for tax related contingencies was increased by $13,729 in 2008. 5. Information Concerning Parent, Subsidiaries, Affiliates and Related Parties ------------------------------------------------------------------------------- The Company received cash in the amount of $2,640 on December 2, 2008 from a dividend declared by Pathmark Administrators, Inc. Of this amount $2,074 was a return of capital with the remainder included in investment income. On May 15, 2008, UCL issued a $25,000, 6.61% fixed to floating rate surplus note (Note) to the Company as part of an intercompany surplus agreement. Interest accrues on the Note at a fixed annual rate of 6.61% from May 15, 2008 to May 14, 2013, and at an annual floating rate equal to the three month LIBOR plus 3.06% from June 2013 until the Note is paid in full. The note matures on May 15, 2048 and can be redeemed in whole, or in part by UCL on or after May 15, 2013. 28 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 5. Information Concerning Parent, Subsidiaries, Affiliates and Related Parties, ------------------------------------------------------------------------------- (continued) ----------- Upon the dissolution of LifeRe Corporation on November 7, 2007, the Company received consideration in the amount of $17 resulting in no realized capital gain or loss. Included in the book/adjusted carrying value of LifeRe Corporation was $8,813 of goodwill, which was released in 2007 upon the dissolution. Effective July 1, 2007, Summit Investment Partners LLC, an advisor that provided investment management services, was liquidated into its parent company, UCL. UCL contributed its unaffiliated investment service contracts to SIP. Effective June 30, 2007, the Company sold 100% of the outstanding common shares of AIA to the Company's parent, AHC, for $660 in cash resulting in a realized capital gain of $559. AIA subsequently changed its name to SIA. SIA is an advisor providing investment management services to all the insurance companies within UNIFI. On December 29, 2006, TAG was dissolved into the Company. Upon dissolution the Company received consideration in the amount of $807 resulting in no realized capital gain or loss. With the AMAL dissolution into the Company as of September 30, 2006, included in the book/adjusted carry value of AMAL was $21,711 of goodwill, which was released at that time. The Company received assets totaling $2,766 and liabilities of $40,856 (including $29,825 as disclosed in Note 6 - Borrowed Money and $10,000 related to a note with the Company, which was subsequently retired upon the dissolution). On January 30, 2003, the Company purchased 520,562 shares of common stock from AFSB valued on that date for $10,000. During 2005, the Company made additional contributions of $1,479 as paid in capital to AFSB. In 2003, the Company received $2,452 in bonds and related accrued interest as of November 30, 2003 in payment of a $2,500 dividend declared by Pathmark Administrators, Inc. The remaining $48 was paid in cash. The bonds were transferred at fair value with the Company recording a deferred gain of $120 to be amortized over the life of the bonds. Effective April 1, 2002, AVLIC (now merged with the Company) and Acacia National Life Insurance Company (merged with Acacia Life as of January 1, 2004) entered into agreements under which the Company accepted, either on a coinsurance (the fixed account business) or on a modified coinsurance basis (the separate account business), the rights, liabilities and obligations of the variable life and annuity products of Acacia Life. In addition, the Company entered into an assumptive reinsurance agreement to assume these ceded policies upon regulatory or policyowner approval as required. In connection with these agreements, assets and liabilities were transferred from Acacia Life to the Company at fair value, which resulted in recording goodwill of $10,794, which is being amortized over 10 years. Amortization of goodwill was $1,079, $1,080 and $1,079 for the years ended December 31, 2008, 2007 and 2006, respectively. On December 20, 1999, the Company purchased $25,000 of redeemable preferred stock from Acacia Life. The stock, which pays dividends in an amount per annum equal to 6.66% in 2008, 2007 and 2006, and is non-voting, provides for redemption beginning in 2005 with final redemption on or by January 1, 2015. On June 1, 2008 and 2007, the Company redeemed 100,000 shares at $2,500. 29 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 5. Information Concerning Parent, Subsidiaries, Affiliates and Related Parties, ------------------------------------------------------------------------------- (continued) ----------- The Company's variable life and annuity products are distributed through AIC. Policies placed generated commission expense of $20,644, $20,449 and $21,528 for the years ended December 31, 2008, 2007 and 2006, respectively. The Company has a variable insurance trust (VIT). The Company offers, in conjunction with FALIC, the VIT as an investment option to policyowners through their separate accounts. The Company had separate account investments of $312,164 and $637,900 in the VIT as of December 31, 2008 and 2007, respectively. FALIC had separate account investments of $187 and $238 in the VIT as of December 31, 2008 and 2007, respectively. Affiliates of the Company provide investment advisory and administrative services to the VIT on a fee basis. The Company offers mutual funds of Calvert Variable Series, Inc. (CVS) and Summit Mutual Funds, Inc. (SMF), affiliates, to policyowners through the separate accounts. Separate account investments in the mutual funds offered through CVS and SMF were $430,322 and $312,611 as of December 31, 2008 and 2007, respectively. The Company had short-term investments of $0 and $116 in mutual funds of an affiliate at December 31, 2008 and 2007, respectively, included in short-term investments. The Company reported the following amounts due from (to) the below listed affiliates. The terms of the intercompany agreements require that these amounts be settled within 30 days.
Receivable (Payable) -------------------------------------------------------------------------------------------------------------------- Ameritas Holding Company $ (719) The Union Central Life Insurance Company (1,394) First Ameritas Life Insurance Corp. of New York 409 Pathmark Administrators Inc. (245) Ameritas Investment Corp. (101) Summit Investment Advisors, Inc. 408 Acacia Life Insurance Company 2,131 Acacia Federal Savings Bank 13 Acacia Financial Corporation 5 Calvert Group, LTD 35 --------------------------------------------------------------------------------------------------------------------
Aviva USA, through assumption reinsurance, has assumed approximately 99% of the Company's equity indexed annuity business as of December 31, 2008 and 2007, reducing the respective ceded allowance to $52 and $82 which is included as a reduction of policy reserves. As a condition to assumption reinsurance, certain states have required the Company to remain contingently liable in the event the assuming reinsurer is unable to fulfill its obligations. The Company is contingently liable for $589 and $1,290 of additional reserves as of December 31, 2008 and 2007, respectively. The Company provides technical, financial, legal and marketing support to its affiliates under various administrative service and cost-sharing agreements. Included in miscellaneous income is $364, $271 and $827 received under administrative service agreements for the years ended December 31, 2008, 2007 and 2006, respectively. Reimbursements of $17,241, $12,490 and $7,006 for the years ended 30 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 5. Information Concerning Parent, Subsidiaries, Affiliates and Related Parties, ------------------------------------------------------------------------------- (continued) ----------- December 31, 2008, 2007 and 2006 related to cost-sharing agreements with affiliates have been recorded as a reduction in general insurance expenses. In addition, the Company receives investment advisory services from an affiliate. Costs related to this agreement, included as an investment expense and reducing net investment income, totaled $2,975, $2,589 and $2,041 for the years ended December 31, 2008, 2007 and 2006, respectively. 6. Borrowed Money ------------------ Effective September 1, 2006 the Company had an outstanding liability for borrowed money in the amount of $29,825 payable to two affiliates, Acacia Life and AFCO. These notes were issued by a 100% owned subsidiary, AMAL, during the repurchase of its outstanding common stock from Acacia Life and AFCO. These notes are payable in twelve equal quarterly installments beginning on December 1, 2006 with the final installment due on September 1, 2009. The notes carry a fixed interest rate of 5.56% based on the Bloomberg Fair Value 3-year Single "A" U.S. Insurer Index plus 0.020%. The Company may not prepay the notes in whole or in part at any time prior to the maturity date. There are no collateral requirements associated with these notes. The Company has a $15,000 unsecured line of credit available at December 31, 2008. No balance was outstanding at any time during 2008 or 2007. The line of credit expires May 31, 2009. 7. Benefit Plans ----------------- Defined Benefit Plans The Company participates in a non-contributory defined benefit plan (the Plan or the Pension Plan) sponsored by AHC. The Plan was formerly sponsored by the Company as a non-contributory defined benefit pension plan (Ameritas Plan) covering substantially all employees of the Company. During 2000, the Ameritas Plan was merged with the Acacia Retirement Plan (Acacia Plan), sponsored by Acacia Life. In 2008, the Union Central Employees Pension Plan merged into the UNIFI Pension Plan. Upon the merger of the Ameritas and Acacia Plans, accumulated benefits of the Plan were frozen, and AHC became the Plan sponsor. Accordingly, the Company's prepaid benefit cost was transferred to AHC, and the Company holds a pre-funded pension expense receivable, due from AHC. During 2008, 2007 and 2006, the Company paid $5,000 to AHC which in turn contributed the money to the Plan. The balance of the prefunded pension expense receivable was $15,990 and $13,982 at December 31, 2008 and 2007, respectively, and is a non-admitted asset. While their pension plans were merged, the separate benefit formulas of the pre-merger plans still exist within the Plan and are used to determine the amount of Plan expense to allocate from AHC to the participating companies. The Company incurred pension expense of $2,992, $3,103 and $3,447 in 2008, 2007 and 2006, respectively, for its participation in the Plan. The Plan's assets include investments in a deposit administration contract with the Company and a group annuity contract with UCL which include investments in underlying separate accounts. The carrying values of the assets of the Plan were approximately $178,764 and $102,960 at December 31, 2008 and 2007, respectively. A portion of the separate accounts' assets are invested in mutual funds which are advised by affiliates of AHC. 31 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 7. Benefit Plans, (continued) ------------------------------ Defined Benefit Plans, (continued) The Company also sponsors several non-qualified unfunded defined benefit pension plans where the Company makes payments under certain voluntary arrangements for payment of retirement benefits, which are not provided for under the Plan. The following tables provide a reconciliation of the changes in the projected benefit obligation for the years ended December 31, 2008, 2007 and 2006, and a statement of the funded status as of the December 31 measurement date for the Company's non-qualified unfunded defined benefit plans:
2008 2007 2006 ------------------------------------------------------------------------------------------------------------------- Reconciliation in benefit obligation Benefit obligation at beginning of year $ 14,768 $ 12,881 $ 12,395 Service cost 303 283 235 Interest cost 905 858 695 Actuarial (gain)/loss (314) 1,435 (360) Special termination benefits 68 - - Benefits paid (2,411) (689) (572) Plan merger - - 488 ------------------------------------------------------------------------------------------------------------------- Benefit obligation at end of year $ 13,319 $ 14,768 $ 12,881 ------------------------------------------------------------------------------------------------------------------- 2008 2007 2006 ------------------------------------------------------------------------------------------------------------------- Funded status Funded status at end of year $ (13,319) $ (14,768) $ (12,881) Unrecognized net actuarial (gain)/loss 1,250 2,073 1,094 Unrecognized net transition asset - (18) (23) Unrecognized prior service cost - 129 150 ------------------------------------------------------------------------------------------------------------------- Accrued benefit cost $ (12,069) $ (12,584) $ (11,660) ------------------------------------------------------------------------------------------------------------------- The amount of the projected benefit obligation and accumulated benefit obligation for nonvested employees was $0 as of December 31, 2008 and 2007. Net periodic benefit expense as of December 31 included the following components: 2008 2007 2006 ------------------------------------------------------------------------------------------------------------------- Service cost $ 303 $ 283 $ 235 Interest cost 905 858 695 Amount of recognized (gains)/losses 349 420 207 Amount of prior service cost recognized 129 21 21 Amortization of transition obligation - (4) (4) Special termination benefits 209 - - ------------------------------------------------------------------------------------------------------------------- Net periodic benefit cost $ 1,895 $ 1,578 $ 1,154 -------------------------------------------------------------------------------------------------------------------
32 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 7. Benefit Plans, (continued) ------------------------------ Defined Benefit Plans, (continued) The following expected benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
Expected Pension Fiscal Year Benefit Payments ------------------------------------------------------------------------------------------------------------------- 2009 $ 1,272 2010 1,272 2011 1,272 2012 1,272 2013 1,272 2014 - 2017 6,232 -------------------------------------------------------------------------------------------------------------------
The assumptions used in the measurement of the projected benefit obligations are:
2008 2007 2006 ------------------------------------------------------------------------------------------------------------------- Assumptions as of December 31 Discount rate 6.25% 6.25% 6.00% Expected compensation increase 5.00% 5.00% 5.00% ------------------------------------------------------------------------------------------------------------------- The assumptions used to determine net periodic benefit expense are: 2008 2007 2006 ------------------------------------------------------------------------------------------------------------------ Assumptions as of December 31 Discount rate 6.25% 6.00% 6.00% Expected compensation increase 5.00% 5.00% 5.00% ------------------------------------------------------------------------------------------------------------------
Information for pension plans with an accumulated benefit obligation in excess of plan assets as of the December 31 measurement date:
2008 2007 2006 ------------------------------------------------------------------------------------------------------------------- Projected benefit obligation $ 13,319 $ 14,768 $ 12,881 Accumulated benefit obligation $ 12,039 $ 13,922 $ 11,179 Fair value of plan assets $ - $ - $ - -------------------------------------------------------------------------------------------------------------------
Defined Contribution Plans The Company's employees and agents participate in defined contribution plans sponsored by AHC that cover substantially all full-time employees and agents. In addition, certain of the Company's employees participate in an unfunded, non-qualified defined contribution plan sponsored by AHC. Company matching contributions under the defined contribution plans range from 0.5% to 3% of the participant's compensation. In addition, for eligible employees who are not Pension Plan participants, the Company makes a contribution of 6% of the participant's compensation for those employees hired prior to January 1, 2006 and 5% of the participant's compensation for those hired after January 1, 2006. Contributions by the Company to the employee and agents defined contribution plans were $4,749, $4,230 and $3,410 in 2008, 2007 and 2006, respectively. 33 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 7. Benefit Plans, (continued) ------------------------------ Defined Contribution Plans, (continued) The defined contribution plans' assets also include investments in deposit administration contracts with the Company and UCL which include investments in underlying separate accounts. The carrying values of the assets invested in the defined contribution plans, were approximately $274,498 and $229,191 at December 31, 2008 and 2007, respectively. At December 31, 2008, $68,746 was invested in mutual funds which are advised by affiliates of AHC. Postretirement Benefit Plans The Company provides certain health care benefits to retired employees who were hired prior to January 1, 2005. For associates eligible to retire at January 1, 2000, these benefits are a specified percentage of premiums until age 65 and a flat dollar amount thereafter. For associates eligible for retirement after January 1, 2000, benefits will be provided until the associate becomes eligible for Medicare. Employees become eligible for these benefits upon the attainment of age 55, 15 years of service and participation in the Company's medical plan for the immediately preceding five years. In December 2003, the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the Act) became law. The Act introduces a prescription drug benefit under Medicare (Medicare Part D) as well as a federal subsidy to sponsors of retiree health care benefit plans that provide a benefit that is at least actuarially equivalent to Medicare Part D. The postretirement benefit obligation and net periodic postretirement benefit cost in the financial statements and accompanying notes do reflect the effects of the Act on the Plan. In May 2004, additional guidance became available to specific companies who elected deferral and were able to determine if their plans are actuarially equivalent to recognize the impact of the Act no later than the first annual reporting period beginning after June 15, 2004. In January 2005, the Center for Medicare and Medicaid Services issued the final regulations for the Act including the determination of actuarial equivalence. The Company has determined that its plans are actuarially equivalent. The Company qualified for and elected to receive the 28% federal subsidy on allowable gross prescription drug costs of qualified retirees. The Company received subsidy payments of $20, $77 and $47 in 2008, 2007 and 2006, respectively. The measures of benefit obligations and net periodic pension cost reflect effects of the Act. 34 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 7. Benefit Plans, (continued) ------------------------------ Postretirement Benefit Plans, (continued) The following tables provide a reconciliation of the changes in the postretirement benefit obligations and fair value of assets for the years ended December 31, 2008, 2007 and 2006, and a statement of the funded status as of the December 31 measurement date of all years:
2008 2007 2006 ------------------------------------------------------------------------------------------------------------------- Reconciliation in benefit obligation Benefit obligation at beginning of year $ 6,144 $ 6,503 $ 5,558 Transfer of obligation from dissolution of AMAL - - 106 Service cost 123 71 69 Interest cost 362 368 331 Plan participants' contributions 481 518 513 Actuarial (gain)/loss 12 (140) 1,164 Federal subsidy receipts 20 77 47 Benefits paid (960) (1,253) (1,285) ------------------------------------------------------------------------------------------------------------------- Benefit obligation at end of year $ 6,182 $ 6,144 $ 6,503 ------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------- Reconciliation of fair value of plan assets Fair value of plan assets at beginning of year $ 2,846 $ 2,795 $ 2,754 Transfer of plan assets from dissolution of AMAL - - 156 Actual return on plan assets 143 139 147 Employer contributions 584 496 401 Benefits paid (273) (584) (663) ------------------------------------------------------------------------------------------------------------------- Fair value of plan assets at end of year $ 3,300 $ 2,846 $ 2,795 ------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------- Funded status Funded status at end of year $ (2,882) $ (3,298) $ (3,708) Unrecognized net actuarial (gain)/loss 2,470 2,658 3,009 Unrecognized prior service cost - (1) (1) ------------------------------------------------------------------------------------------------------------------- Accrued benefit cost $ (412) $ (641) $ (700) ------------------------------------------------------------------------------------------------------------------- The amount of the postretirement obligation for nonvested employees was $1,529 and $901 at December 31, 2008 and 2007, respectively. Periodic postretirement medical expense included the following components: Years Ended December 31 ------------------------------------------------------------------------------------------------------------------- 2008 2007 2006 ------------------------------------------------------------------------------------------------------------------- Service cost $ 123 $ 71 $ 69 Interest cost 362 368 331 Expected return on plan assets (149) (148) (156) Amortization of net loss 206 219 175 ------------------------------------------------------------------------------------------------------------------- Net periodic benefit cost $ 542 $ 510 $ 419 -------------------------------------------------------------------------------------------------------------------
35 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 7. Benefit Plans, (continued) ------------------------------ Postretirement Benefit Plans, (continued) Plan assets are invested in 100% fixed income investments. The expected rate of return on these investments is 6%. The Company expects to contribute $724 to its postretirement benefits plans and 401(h) account in 2009. The following net benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
Expected Net Benefit Payments Fiscal Year ------------------------------------------------------------------------------------------------------------------ 2009 $ 724 2010 724 2011 703 2012 637 2013 602 2014 - 2018 3,026 ------------------------------------------------------------------------------------------------------------------
The assumptions used in the measurement of the postretirement benefit obligations are:
2008 2007 2006 ------------------------------------------------------------------------------------------------------------------- Weighted-average assumptions as of December 31 Discount rate 6.25% 6.25% 6.00% Expected long term rate of return on plan assets 6.00% 6.00% 6.00% ------------------------------------------------------------------------------------------------------------------- The assumptions used to determine net periodic postretirement benefit costs are: 2008 2007 2006 ------------------------------------------------------------------------------------------------------------------- Weighted-average assumptions as of December 31 Discount rate 6.25% 6.00% 5.75% Expected long term rate of return on plan assets 6.00% 6.00% 6.00% ------------------------------------------------------------------------------------------------------------------- The assumed health care cost trend rates as of December 31 were: 2008 2007 2006 ------------------------------------------------------------------------------------------------------------------- Healthcare Cost Trend Rate Assumed for Next Year 7.0% 8.0% 9.0% Rate to which the Cost Trend Rate is Assumed to Decline (Ultimate Trend Rate) 5.0% 5.0% 5.0% Year the Rate Reaches the Ultimate Trend Rate 2011 2011 2011 -------------------------------------------------------------------------------------------------------------------
36 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 7. Benefit Plans, (continued) ------------------------------ Postretirement Benefit Plans, (continued) Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A 1% change in health care trend rates would have the following effects:
------------------------------------------------------------------------------------------------------------------- 1% increase 1% decrease ------------------------------------------------------------------------------------------------------------------- Effect on total of service and interest cost components of net $ 28 $ (26) periodic postretirement health care benefit cost Effect on the health care component of the accumulated postretirement benefit obligation $ 337 $ (320) ------------------------------------------------------------------------------------------------------------------- Information for postretirement plans with an accumulated benefit obligation in excess of plan assets as of the December 31 measurement date: Years Ended December 31 ------------------------------------------------------------------------------------------------------------------- 2008 2007 2006 ------------------------------------------------------------------------------------------------------------------- Projected benefit obligation $ 6,182 $ 6,144 $ 6,503 Accumulated benefit obligation 6,182 6,144 6,503 Fair value of plan assets 3,300 2,846 2,795 ------------------------------------------------------------------------------------------------------------------- 8. Dividend Restrictions and Surplus ------------------------------------ The Company is subject to regulation by the Department, which restricts the advancement of funds to parent and affiliated companies as well as the amount of dividends that may be paid without prior approval. Dividend payments by the Company, when aggregated with all other dividends in the preceding 12 months, cannot exceed the greater of 10% of surplus as of the preceding year-end or the statutory net gain from operations for the previous calendar year, without prior approval from the Department. Based on this limitation, the Company would be able to pay $70,813 in dividends after December 9, 2009, without prior approval. The Company paid ordinary dividends of $87,000, $0, $0 to AHC, its' parent, in 2008, 2007 and 2006, respectively. Additionally due to the merger with LifeRe, the Company paid stock dividends of $0, $500 and $0 and cash dividends of $0, $0 and $500 to LifeRe's then parent company, LifeRe Corporation, in 2008, 2007 and 2006, respectively. Unassigned surplus represents the undistributed and unappropriated amount of surplus at the statement date. The cumulative effect related to the portion of unassigned surplus represented or reduced by each of the following items as of December 31: 2008 2007 2006 ------------------------------------------------------------------------------------------------------------------- Unrealized gains on investments, net of taxes of $965, $20,075 and $18,002 $ 17,492 $ 44,213 $ 57,355 Nonadmitted asset values (104,122) (55,027) (48,266) Asset valuation reserves (4,995) (68,603) (62,456) Liability for reinsurance in unauthorized companies (1,854) (26) - -------------------------------------------------------------------------------------------------------------------
37 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 9. Commitments and Contingencies --------------------------------- As a condition of doing business, all states and jurisdictions have adopted laws requiring membership in life and health insurance guaranty funds. Member companies are subject to assessments each year based on life, health or annuity premiums collected in the state. In some states these assessments may be applied against premium taxes. The Company estimated its cost related to past insolvencies and has provided a reserve included in other liabilities of $773 and $526 as of December 31, 2008 and 2007, respectively, and estimated recoveries from premium taxes included in data processing and other admitted assets of $690 and $454 as of December 31, 2008 and 2007, respectively. From time to time the Company is involved in pending and threatened litigation in the normal course of business in which claims for monetary damages are asserted. In the opinion of management, the ultimate liability, if any, arising from such pending or threatened litigation is not expected to have a material effect on the results of operations, liquidity or financial position of the Company. The Company had no claims (per claim or claimant) where amounts were paid to settle claims related to extra contractual obligations or bad faith claims resulting from lawsuits during 2008, 2007 and 2006. Securities commitments of $32,003 and $28,275 and mortgage loan and real estate commitments of $38,954 and $23,346 were outstanding for investments to be purchased in subsequent years as of December 31, 2008 and 2007, respectively. Low income housing tax credit property investment commitments were $3,030 and $442 as of December 31, 2008 and 2007, respectively. These commitments have been made in the normal course of business and are not reflected in the accompanying financial statements. The Company's exposure to credit loss is represented by the contractual notional amount of these commitments. The Company uses the same credit policies and collateral requirements in making commitments and conditional obligations as it does for on-balance sheet instruments. Companies operating in the insurance and financial services markets have come under the scrutiny of regulators with respect to market conduct and compliance issues. Under certain circumstances, companies have been held responsible for providing incomplete or misleading sales materials and for replacing existing policies with policies that were less advantageous to the policyowner. The Company monitors its sales materials and enforces compliance procedures to mitigate any exposure to potential litigation. The Company and its life insurance subsidiaries are members of the Insurance Marketplace Standards Association, an organization which advocates ethical market conduct. The Company engaged in securities lending transactions to generate additional income. The program was administered by an authorized financial institution and required the borrower to provide collateral, primarily consisting of cash and government securities, on a daily basis, in amounts equal to or exceeding 102% of the fair value of the loaned securities. The Company maintained effective control over all loaned securities and, therefore, continued to report such securities as bonds and common stocks in the statutory statements of admitted assets, liabilities and capital and surplus. The carrying value of bonds loaned as of December 31, 2008 and 2007 were $0 and $25,744 respectively. The carrying value of common stocks loaned as of December 31, 2008 and 2007 were $0 and $28,077, respectively. The fair value of cash collateral held was $0 and $56,998 as of December 31, 2008 and 2007, respectively. Due to unprecedented conditions in the short-term credit market, which created disruptions in prime money market funds, the Company exited its securities lending program during September 2008. There was no non-cash collateral on deposit at December 31, 2008 and 2007. 38 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 9. Commitments and Contingencies, (continued) ---------------------------------------------- In 2006, the Company entered into an agreement with the FHLB, to enhance investment yields through investment spread strategies and to resolve emergency liquidity needs, if a future need for immediate liquidity would arise. The agreement provides for fixed rate long term advances (lines of credit) up to $20,000 to the Company in return for the purchase of membership stock equal to $1,000. Since 2006, the Company has purchased $3,602 of additional stock as part of this agreement. As of December 31, 2008 and 2007, the Company had issued $100,000 and $12,000, respectively, of funding agreements with the FHLB. Additional funding of $20,000 is available to the Company. The reserves related are reported in deposit-type funds on the statutory statements of admitted assets, liabilities, and capital and surplus of $100,238 and $12,018 as of December 31, 2008 and 2007, respectively. There is $118,167 and $11,454 of collateral pledged at December 31, 2008 and 2007, respectively, as a result of this agreement. The assets and reserves related to the funding agreements are reported in the general account as the Company's strategy is to increase investment income to the general account from the investment spread strategy. 10. Gain or Loss to the Reporting Entity from Uninsured Accident and Health --------------------------------------------------------------------------- Plans ----- ASO Plans The gain from operations from administrative services only (ASO) uninsured plans is as follows for the year ended December 31:
2008 2007 2006 ------------------------------------------------------------------------------------------------------------------- Net reimbursement for administrative expenses (including administrative fees) in excess of actual expenses $ 4,255 $ 3,226 $ 3,822 Total net other income (expense) (including interest paid to or received from ASO uninsured plans) - - - ------------------------------------------------------------------------------------------------------------------- Net gain from operations $ 4,255 $ 3,226 $ 3,822 ------------------------------------------------------------------------------------------------------------------- Total claim payment volume $ 93,914 $ 82,943 $ 65,662 ------------------------------------------------------------------------------------------------------------------- ASC Plans The gain from operations from administrative services contract (ASC) uninsured plans is as follows for the year ended December 31: 2008 2007 2006 ------------------------------------------------------------------------------------------------------------------- Gross reimbursement for medical cost incurred $ 648 $ 543 $ 430 Other income or expenses (including interest paid to or received from plans) 41 35 27 Gross expenses incurred (claims and administrative) 682 571 452 ------------------------------------------------------------------------------------------------------------------- Net gain from operations $ 7 $ 7 $ 5 ===================================================================================================================
39 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 11. Direct Premiums Written ---------------------------- The Company has one third party administrator, HealthPlan Services, Inc., for which direct premiums written exceed 5% of total capital and surplus. This administrator writes group accident and health business, does not have an exclusive contract, and has been granted the authority for underwriting, premium collection, and binding authority. The total amount of direct premiums written is $47,013, $44,846 and $43,922 for the years ended December 31, 2008, 2007 and 2006, respectively. The Company did not have any other third party administrators or any managing general agents that exceeded 5% of total surplus for direct written premiums during these periods. 12. Other Items ---------------- Troubled Debt Restructuring The Company has several long-term bond holdings with restructured terms. The carrying value at December 31, 2008 and 2007, has been written down to $0, whereby the Company recorded no realized capital losses. The Company incurred no amount of commitments to lend additional funds to debtors owing receivables whose terms have been modified in troubled debt restructuring. The Company's income recognition policy for interest income on an impaired loan is the cash basis/cost recovery method. Securities on Deposit Securities with a book/adjusted carrying value of $8,792 and $10,112 at December 31, 2008 and 2007, respectively, were on deposit with government agencies as required by law in various jurisdictions in which the Company conducts business. Uncollectibility of Assets The Company had admitted assets of $1,952 and $953 at December 31, 2008 and 2007, respectively, in accounts receivable for uninsured plans and included with data processing and other admitted assets on the statutory statements of admitted assets, liabilities and capital and surplus. The Company routinely assesses the collectibility of these receivables. Based upon Company experience, less than 1% of the balance may become uncollectible and the potential loss is not material to the Company's financial condition. Participating Contracts Effective October 1, 1998 (the Effective Date) the Company formed a closed block (the Closed Block) of policies, under an arrangement approved by the Department, to provide for dividends on policies that were in force on the Effective Date and which were within the classes of individual policies for which the Company had a dividend scale in effect on the Effective Date. The Closed Block was designed to give reasonable assurance to owners of affected policies that the assets will be available to support such policies including maintaining dividend scales in effect at the Effective Date, if the experience underlying such scales continues. The assets, including revenue thereon, will accrue solely to the benefit of the owners of policies included in the block until the block is no longer in effect. 40 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 13. Leases ----------- The Company has several noncancellable operating leases for office space and equipment. Rental expense during 2008, 2007 and 2006 for operating leases was $508, $628 and $550, respectively. Future minimum lease payments under noncancellable operating leases consisted of the following at December 31, 2008:
------------------------------------------------------------------------------------------------------------------- 2009 $ 551 2010 533 2011 517 2012 523 2013 and thereafter 219 ------------------------------------------------------------------------------------------------------------------- $ 2,343 -------------------------------------------------------------------------------------------------------------------
14. Reinsurance ---------------- Amounts recoverable from reinsurers are estimated based upon assumptions consistent with those used in establishing the liabilities related to the underlying reinsured contracts. Management believes the recoverables are appropriately established. The Company conducts reinsurance business with FALIC, Acacia Life, and other non-affiliated companies. Following is a summary of the transactions through reinsurance operations:
Years Ended December 31 -------------------------------------------- 2008 2007 2006 ------------------------------------------------------------------------------------------------------------------- Premium Income: Assumed (related party $102, $80 and $115 in 2008, 2007 and 2006) $ 49,678 $ 56,885 $ 71,398 Ceded (related party $2,097, $2,125 and $3,955 in 2008, 2007 and 2006) 31,759 29,233 27,904 Benefits To Policyowners: Assumed (related party $0, $214 and $0 in 2008, 2007 and 2006) 48,137 47,418 54,910 Ceded (related party $702, $1,588 and $2,694 in 2008, 2007 and 2006) 22,146 18,115 18,835 Policy Reserves: Assumed (related party $38 and $36 in 2008 and 2007) 172 402 N/A Ceded (related party $1,091 and $1,061 in 2008 and 2007) 67,863 63,732 N/A -------------------------------------------------------------------------------------------------------------------
The Company is not relieved of its primary liability in the event that a reinsurer is unable to meet the obligations ceded under a reinsurance agreement. 41 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 15. Changes in Unpaid Claims and Claim Adjustment Expenses ----------------------------------------------------------- The change in the liability for unpaid accident and health claims and claim adjustment expenses which is reported within reserves for unpaid claims is summarized as follows:
2008 2007 2006 ------------------------------------------------------------------------------------------------------------------- Balance at January 1 $ 32,355 $ 33,359 $ 31,986 Less reinsurance recoveries (6,487) (8,776) (9,929) ------------------------------------------------------------------------------------------------------------------- Net balance at January 1 25,868 24,583 22,057 ------------------------------------------------------------------------------------------------------------------- Incurred related to: Current year 362,372 328,784 299,732 Prior year (4,951) (5,123) (4,036) ------------------------------------------------------------------------------------------------------------------- Total incurred 357,421 323,661 295,696 ------------------------------------------------------------------------------------------------------------------- Paid related to: Current year 336,143 302,903 275,141 Prior year 20,916 19,473 18,029 ------------------------------------------------------------------------------------------------------------------- Total paid 357,059 322,376 293,170 ------------------------------------------------------------------------------------------------------------------- Net balance at December 31 26,230 25,868 24,583 Plus reinsurance recoveries 7,803 6,487 8,776 ------------------------------------------------------------------------------------------------------------------- Total reserve for unpaid claims $ 34,033 $ 32,355 $ 33,359 ===================================================================================================================
As a result of favorable settlement of prior years' estimated claims, the provision for claims and claim adjustment expenses decreased by $4,951, $5,123 and $4,036 for the years ended December 31, 2008, 2007 and 2006, respectively. The Company paid assumed reinsurance claims of $46,541, $49,224 and $55,422 and incurred assumed reinsurance claims of $47,854, $46,929 and $54,919 for the years ended December 31, 2008, 2007 and 2006, respectively. The Company paid ceded reinsurance claims of $532, $549 and $598, and incurred ceded reinsurance claims of $528, $537 and $601 for the years ended December 31, 2008, 2007 and 2006, respectively. 16. Policy Reserves -------------------- The Company waives deduction of deferred fractional premiums due upon death of the insured and returns any portion of the final premium beyond the date of death on traditional business. Surrender values are not provided in excess of legally computed reserves. Additional premiums are charged for policies issued on substandard lives according to underwriting classification. Reserves for substandard policies are included in the policy reserve. 42 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 16. Policy Reserves, (continued) --------------------------------- As of December 31, 2008 and 2007, respectively, the Company had $1,456,255 and $1,380,130 of insurance in force for which the gross premiums are less than the net premiums according to the standard valuation set by the Department. Reserves to cover the above insurance totaled $16,891 and $10,679 at December 31, 2008 and 2007, respectively. 17. Analysis of Annuity Reserves and Deposit-type Funds by Withdrawal --------------------------------------------------------------------- Characteristics --------------- Withdrawal characteristics of annuity reserves and deposit-type funds at December 31 are as follows:
2008 ------------------------------------ Amount % of Total ------------------------------------------------------------------------------------------------------------------- Subject to discretionary withdrawal: With fair value adjustment $ 620,185 19.7% At book value less current surrender charge of 5% or more 69,510 2.2% At fair value 1,955,662 62.2% ------------------------------------------------------------------------------------------------------------------- Total with adjustment or at fair value 2,645,357 84.1% At book value without adjustment (minimal or no charge) 409,788 13.0% Not subject to discretionary withdrawal 91,847 2.9% ------------------------------------------------------------------------------------------------------------------- Total gross $ 3,146,992 100.0% Reinsurance ceded (2,739) ------------------------------------------------------------------------------------------------- Total Net $ 3,144,253 ================================================================================================= 2007 ------------------------------------ Amount % of Total ------------------------------------------------------------------------------------------------------------------- Subject to discretionary withdrawal: With fair value adjustment $ 509,088 13.2% At book value less current surrender charge of 5% or more 517,349 13.4% At fair value 976,074 25.4% ------------------------------------------------------------------------------------------------------------------- Total with adjustment or at fair value 2,002,511 52.0% At book value without adjustment (minimal or no charge) 1,786,644 46.3% Not subject to discretionary withdrawal 65,034 1.7% ------------------------------------------------------------------------------------------------------------------- Total gross $ 3,854,189 100.0% Reinsurance ceded (165) ------------------------------------------------------------------------------------------------- Total Net $ 3,854,024 ================================================================================================= In 2008, the Company reported Separate Account reserves and deposit-type liabilities separately from the general account reserves and deposit-type liabilities in the above table, while in 2007, the Company reported the reserves and deposit-type liabilities according to the entire policy irregardless of the policyholders' investment selection. 43 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 17. Analysis of Annuity Reserves and Deposit-type Funds by Withdrawal --------------------------------------------------------------------- Characteristics, (continued) ---------------------------- The following information is obtained from the applicable Exhibit in the Company's December 31 Annual Statement and related Separate Accounts Annual Statement, both of which are filed with the Department, and is provided to reconcile annuity reserves and deposit-type funds to amounts reported in the statutory statements of admitted assets, liabilities and capital and surplus as of December 31: 2008 2007 ------------------------------------------------------------------------------------------------------------------- Life and Accident and Health Annual Statement: Exhibit 5, Annuities Section, Total (net) $ 980,638 $ 871,765 Exhibit 5, Supplementary Contracts with Life Contingencies Section, Total (net) 10,520 10,735 Exhibit 7, Deposit-Type Contracts, Line 14, Column 1 197,433 109,239 ------------------------------------------------------------------------------------------------------------------- 1,188,591 991,739 Separate Accounts Annual Statement: Exhibit 3, Line 0299999, Column 2 1,955,662 2,862,285 ------------------------------------------------------------------------------------------------------------------- Total $ 3,144,253 $ 3,854,024 ===================================================================================================================
18. Premium and Annuity Considerations Deferred and Uncollected ---------------------------------------------------------------- Deferred and uncollected life insurance premiums and annuity considerations as of December 31 are as follows:
2008 2007 2006 -------------------------------------------------------------------------------- Type Gross Net of Gross Net of Gross Net of Loading Loading Loading ------------------------------------------------------------------------------------------------------------------- Ordinary new business $ 1 $ 1 $ 23 $ 20 $ 71 $ 60 Ordinary renewal 5,313 4,913 4,838 4,430 5,221 4,785 ------------------------------------------------------------------------------------------------------------------- Totals $ 5,314 $ 4,914 $ 4,861 $ 4,450 $ 5,292 $ 4,845 ===================================================================================================================
44 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 19. Separate Accounts ---------------------- Information regarding the nonguaranteed separate accounts of the Company is as follows:
2008 2007 2006 ------------------------------------------------------------------------------------------------------------------- For the years ended December 31: Premiums, considerations or deposits $ 602,252 $ 480,315 $ 605,460 ------------------------------------------------------------------------------------------------------------------- At December 31: Reserves by valuation basis Fair value $ 2,389,646 $ 3,604,435 =================================================================================================== Reserves by withdrawal characteristic: Subject to discretionary withdrawal At book value without fair value adjustment and with current surrender charge of 5% or more $ - $ 418,760 At fair value 2,389,646 976,074 At book value without adjustment (minimal or no charge) - 2,208,875 --------------------------------------------------------------------------------------------------- Sub-total $ 2,389,646 $ 3,603,709 Not subject to discretionary withdrawal - 726 --------------------------------------------------------------------------------------------------- Total $ 2,389,646 $ 3,604,435 =================================================================================================== In 2008 and 2007, the Company's reserves in the above table were classified as explained in Note 17. ------------------------------------------------------------------------------------------------------------------- Reconciliation of net transfers to (from) separate accounts at December 31: Transfers as reported in the statutory statement of operations of the separate accounts annual statement: Transfers to separate accounts $ 602,252 $ 480,315 $ 605,460 Transfers from separate accounts (512,423) (447,861) (424,724) ------------------------------------------------------------------------------------------------------------------- Net transfers to separate accounts 89,829 32,454 180,736 ------------------------------------------------------------------------------------------------------------------- Net transfers as reported in the statutory statements of $ 89,831 $ 32,454 $ 180,736 operations of the Company ------------------------------------------------------------------------------------------------------------------- Reconciling adjustments (2) - - ------------------------------------------------------------------------------------------------------------------- Net transfers $ 89,829 $ 32,454 $ 180,736 =================================================================================================================== 20. EDP Equipment and Software ------------------------------- Electronic data processing ("EDP") equipment and operating and nonoperating software consisted of the following at December 31: 2008 2007 ------------------------------------------------------------------------------------------------------------------- Electronic data processing equipment $ 12,926 $ 12,895 Operating system software 4,225 3,868 Nonoperating system software 27,334 18,468 ------------------------------------------------------------------------------------------------------------------- Subtotal 44,485 35,231 Accumulated depreciation (31,008) (27,316) ------------------------------------------------------------------------------------------------------------------- Balance, net $ 13,477 $ 7,915 ===================================================================================================================
45 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 20. EDP Equipment and Software, (continued) -------------------------------------------- EDP equipment and operating software included in data processing and other admitted assets are $2,297 and $3,189 at December 31, 2008 and 2007, respectively. Depreciation expense related to EDP equipment and operating and nonoperating software totaled $4,722, $2,978 and $3,020 for the year ended December 31, 2008, 2007 and 2006, respectively. 21. Reconciliation of Statutory Net Income and Surplus to GAAP Net Income and ----------------------------------------------------------------------------- Equity ------ As described in Note 1, the Company has prepared these financial statements in conformity with statutory accounting practices prescribed or permitted by the Department. These practices differ from accounting principles generally accepted in the United States of America (GAAP). The following tables reconcile statutory net income to GAAP net income and statutory surplus to GAAP equity.
2008 2007 2006 ------------------------------------------------------------------------------------------------------------------- Statutory net income (loss) as reported $ (71,982) $ 77,195 $ 72,461 Insurance reserves 48,357 3,751 2,777 Deferred policy acquisition costs (21,574) (4,196) 15,657 Deferred income taxes and other tax reclassifications 15,090 (7) (5,266) Statutory investment reserves (5,781) (463) (437) Goodwill amortization 1,079 1,080 1,079 Income related to investments (38,287) 6,098 1,587 Earnings of subsidiaries (36) 4,887 2,561 Other 363 (867) (1,131) ------------------------------------------------------------------------------------------------------------------- GAAP net income (loss) $ (72,771) $ 87,478 $ 89,288 =================================================================================================================== 2008 2007 2006 ------------------------------------------------------------------------------------------------------------------- Statutory surplus as reported $ 710,625 $ 878,120 $ 826,051 Insurance reserves (56,443) (104,391) (110,975) Deferred policy acquisition costs 251,153 262,741 272,602 Deferred income taxes (30,828) (58,652) (62,809) Valuation of investments (120,854) (5,545) (13,420) Statutory investment reserves 1,537 70,926 65,242 Goodwill (3,508) (4,587) (5,667) Subsidiary equity 13,127 13,065 974 Statutory non-admitted assets 104,122 55,027 48,266 Post retirement and pension benefit obligations (38,544) (21,490) - Other (2,226) (6,427) (5,046) ------------------------------------------------------------------------------------------------------------------- GAAP equity $ 828,161 $ 1,078,787 $ 1,015,218 ===================================================================================================================
46 AMERITAS LIFE INSURANCE CORP. NOTES TO THE STATUTORY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006 (in thousands) -------------------------------------------------------------------------------- 22. Correction of Errors ------------------------- Subsequent to the issuance of the Company's 2006 statutory financial statements, the Company's management determined that there was an error in the calculation of reinsurance assumed reserves and reinsurance ceded premium income on term life products with one reinsurer. As a result, unassigned surplus and net income as reported in the Company's statutory financial statements and its statutory filing with the Department at December 31, 2006 were overstated by $1,292, net of taxes of $696. As the amount is not material to the prior year financial statements, in accordance with SSAP No. 3, "Accounting Changes and Corrections of Errors", it is recorded in unassigned surplus during the year ended December 31, 2007. 23. Subsequent Event --------------------- At the February 2009 Board of Directors meetings, the Company's Board, along with the respective Boards of UNIFI, AHC, and UCL, approved a repositioning between the Company and UCL whereby AHC will transfer the stock of UCL to the Company effective upon the approval of the Department and the Insurance Department of the State of Ohio. In a concurrent event, UCL will request approval to redomesticate from the State of Ohio to the State of Nebraska. After the repositioning, UCL will become a wholly owned subsidiary of the Company and the Company will contribute up to $100 million to UCL as additional paid-in capital to UCL. 47 INDEPENDENT AUDITORS' REPORT ON SUPPLEMENTAL SCHEDULES To the Board of Directors Ameritas Life Insurance Corp. Lincoln, Nebraska Our 2008 audit was conducted for the purpose of forming an opinion on the basic 2008 statutory financial statements taken as a whole. The supplemental schedule of selected financial data, the supplemental summary investment schedule, and the supplemental investment risks interrogatories as of and for the year ended December 31, 2008 are presented for purposes of additional analysis and are not a required part of the basic 2008 statutory financial statements. These schedules are the responsibility of the Company's management. Such schedules have been subjected to the auditing procedures applied in our audit of the basic 2008 statutory financial statements. The effects on these schedules of the differences between the statutory basis of accounting and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material. Accordingly, in our opinion, such schedules do not present fairly, in conformity with accounting principles generally accepted in the United States of America, the information shown therein. However, in our opinion, such schedules are fairly stated in all material respects when considered in relation to the basic 2008 statutory financial statements taken as a whole. Lincoln, Nebraska March 17, 2009 48 PART C OTHER INFORMATION Item 24. Financial Statements and Exhibits a) Financial Statements: The financial statements of the subaccounts of Ameritas Life Insurance Corp. Separate Account LLVA and Ameritas Life Insurance Corp. are filed in Part B. They include: Subaccounts of Ameritas Life Insurance Corp. Separate Account LLVA: Report of Deloitte & Touche LLP, independent registered public accounting firm. Statements of Net Assets as of December 31, 2008. Statements of Operations for the period ended December 31, 2008. Statements of Changes in Net Assets for the periods ended December 31, 2008 and 2007. Notes to Financial Statements for the periods ended December 31, 2008 and 2007. Ameritas Life Insurance Corp.: Report of Deloitte & Touche LLP, independent auditors. Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus as of December 31, 2008 and 2007. Statutory Statements of Operations for each of the three years in the period ended December 31, 2008. Statutory Statements of Changes in Capital and Surplus for each of the three years in the period ended December 31, 2008. Statutory Statements of Cash Flows for each of the three years in the period ended December 31, 2008. Notes to the Statutory Financial Statements for the years ended December 31, 2008, 2007 and 2006. All schedules of Ameritas Life Insurance Corp. for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission are not required under the related instructions, are inapplicable or have been disclosed in the Notes to the Statutory Financial Statements and therefore have been omitted. There are no financial statements included in Part A or Part C. Item 24. Financial Statements and Exhibits b) Exhibits Exhibit Number Description of Exhibit ------- ---------------------- (1) Resolution of Board of Directors of Ameritas Life Insurance Corp. Establishing Ameritas Life Insurance Corp. Separate Account LLVA. (1) (2) Custody Agreements. Not applicable. (3) (a) Principal Underwriting Agreement. (2) (3) (b) Form of Selling Agreement. (3) (4) Form of Variable Annuity Contract. (4) (5) Form of Application for Variable Annuity Contract. (5) (6) (a) Certificate of Incorporation of Ameritas Life Insurance Corp.(1) (6) (b) Bylaws of Ameritas Life Insurance Corp. (6) (7) Reinsurance Agreements. Not Applicable. (8) (a) Participation Agreement - ProFunds. (7) (9) Opinion and consent of Robert G. Lange. (10) Consents of Independent Auditors and Independent Registered Public Accounting Firm. (11) Omitted Financial Statements. Not Applicable (12) Initial capital Agreements. Not applicable. (13) Powers of Attorney. (8,9) Footnotes: 1. Incorporated by reference to the initial registration statement for Ameritas Life Insurance Corp. Separate Account LLVA (File No. 333-05529), filed on June 7, 1996, EX-99.B1, EX-99.B3B, EX-99.B6A. 2. Incorporated by reference to the Pre-Effective Amendment No. 1 for Ameritas Life Insurance Corp. Separate Account LLVA (File No. 333-05529), filed on October 3, 1996, EX-99B3A. 3. Incorporated by reference to Ameritas Variable Separate Account V Form N-6 Post-Effective Amendment No.1 to Registration Statement No. 333-151913 submitted to the SEC on April 9, 2009, EX.99.C. 4. Incorporated by reference to the initial registration statement for Ameritas Life Insurance Corp. Separate Account LLVA (File No. 333-122109), filed on January 18, 2005, EX-4. 5. Incorporated by reference to Pre-Effective Amendment No. 1 for Ameritas Life Insurance Corp. Separate Account LLVA (File No. 333-120972), filed on March 22, 2005. EX-99.E. 6. Incorporated by reference to Post-Effective Amendment No. 4 for Ameritas Life Insurance Corp. Separate Account LLVA (File No. 333-05529), filed on February 26, 1999, EX-99(6)(B). 7. Incorporated by reference to Post-Effective Amendment No. 6 for Ameritas Life Insurance Corp. Separate Account LLVA (File No. 333-122109), filed on February 27, 2009, EX-99.H. 8. Incorporated by reference to Post-Effective Amendment No. 1 for Ameritas Life Insurance Corp. Separate Account LLVA (File No. 333-122109), filed February 28, 2006, EX-24. 9. Incorporated by reference to Post-Effective Amendment No. 5 for Ameritas Life Insurance Corp. Separate Account LLVA (File No. 333-122109), filed April 23, 2008, EX-24. Item 25. Directors and Officers of the Depositor
Name and Principal Business Address * Position and Offices with Depositor ------------------ ----------------------------------- JoAnn M. Martin Director, Chair, President & Chief Executive Officer James P. Abel Director William W. Cook, Jr. Director Bert A. Getz Director James R. Knapp Director Tonn M. Ostergard Director Paul C. Schorr, III Director Winston J. Wade Director Kurt Y. Allen Senior Vice President & Chief Marketing Officer, Individual & Retirement Plans Robert C. Barth Senior Vice President & Chief Financial Officer Jan M. Connolly Senior Vice President & Corporate Secretary Nancy A. Dalessio Senior Vice President & Chief Information Officer Raymond M. Gilbertson Vice President, Corporate Compliance Arnold D. Henkel Senior Vice President, Individual Distribution Dale D. Johnson Senior Vice President and Corporate Actuary Robert P. Kocher Senior Vice President, Strategic Thinking Robert G. Lange Vice President, General Counsel & Assistant Secretary William W. Lester Senior Vice President, Investments & Treasurer Kevin W. O'Toole Senior Vice President Robert-John H. Sands Senior Vice President Janet L. Schmidt Senior Vice President, Human Resources Steven J. Valerius Senior Vice President, Individual & Retirement Plans Kenneth L. VanCleave President, Group Division
* Principal business address: Ameritas Life Insurance Corp., 5900 "O" Street, Lincoln, Nebraska 68510. Item 26. Organizations under common control with the depositor include:
Name of Corporation (state where organized) Principal Business UNIFI Mutual Holding Company (NE)......................................mutual insurance holding company Ameritas Holding Company (NE).....................................stock insurance holding company Acacia Life Insurance Company (DC)............................life insurance company Acacia Financial Corporation (MD)........................holding company Acacia Federal Savings Bank (DE).....................federally chartered bank Acacia Service Corp. (VA)........................deposit solicitation Calvert Group, Ltd. (DE).............................holding company Calvert Asset Management Company, Inc. (DE)......asset management services Calvert Shareholder Services, Inc. (DE)..........administrative services Calvert Administrative Services Company (DE).....administrative services Calvert Distributors, Inc. (DE)..................broker-dealer Ameritas Life Insurance Corp. (NE)............................life/health insurance company Ameritas Investment Corp. (NE)...........................securities broker dealer and investment adviser owned by Ameritas Life Insurance Corp. (80%) and Centralife Annuities Service, Inc. (20%) First Ameritas Life Insurance Corp. of New York (NY).....life insurance company Pathmark Administrators, Inc. (NE).......................third-party administrator of dental and eye care insurance plans The Union Central Life Insurance Company (OH).................life insurance company Union Central Mortgage Funding, Inc. (OH)................mortgage loan and servicing PBRA, Inc. (CA)..........................................holding company Price, Raffel & Browne Administrators, Inc. (DE) pension administration services Summit Investment Partners, Inc. (OH)....................investment adviser Summit Investment Advisors, Inc. (NE).........................investment adviser
Subsidiaries are indicated by indentations. Ownership is 100% by the parent company except as noted. Item 27. Number of Contract Owners As of March 31, 2009 there were 534 qualified contracts and 3,321 non-qualified contracts in the Separate Account. Item 28. Indemnification Ameritas Life Insurance Corp.'s By-laws provide as follows: "The Corporation shall indemnify any person who was, or is a party, or is threatened to be made a party, to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative by reason of the fact that he or she is or was a director, officer or employee of the Corporation or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses including attorney's fees, judgments, fines and amounts paid in settlement actually and reasonably incurred in connection with such action, suit or proceeding to the full extent authorized by the laws of Nebraska." Section 21-20,103 of the Nebraska Business Corporation Act, in general, allows a corporation to indemnify any director, officer, employee or agent of the corporation against liability incurred by him or her in connection with an action, suit or proceeding, if he or she acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interest of the corporation, and with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. In a case of a derivative action, no indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable for negligence or misconduct in the performance of his or her duty to the corporation, unless a court in which the action was brought shall determine that such person is fairly and reasonably entitled to indemnify for such expenses which the Court shall deem proper. Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. Item 29. Principal Underwriter a) Ameritas Investment Corp. ("AIC") which serves as the principal underwriter for the variable annuity contracts issued through Ameritas Life Insurance Corp. Separate Account LLVA, also serves as the principal underwriter for variable annuity contracts issued through Ameritas Variable Separate Account VA-2, Ameritas Variable Separate Account VA, First Ameritas Variable Annuity Separate Account, and Carillon Account and for variable life insurance contracts issued through Ameritas Life Insurance Corp. Separate Account LLVL, Ameritas Variable Separate Account V, Ameritas Variable Separate Account VL, First Ameritas Variable Life Separate Account, and Carillon Life Account. b) The following table sets forth certain information regarding the officers and directors of the principal underwriter, Ameritas Investment Corp.
Name and Principal Positions and Offices Business Address and Underwriter JoAnn M. Martin* Director & Chair Salene Hitchcock-Gear* Director, President & Chief Executive Officer Robert C. Barth* Director Kent M. Campbell** Director William W. Lester* Director, Vice President & Treasurer Billie B. Beavers*** Senior Vice President Cheryl L. Heilman* Vice President, Chief Operating Officer Robert G. Lange* Vice President, Secretary & General Counsel Bruce D. Lefler*** Senior Vice President, Public Finance Gregory C. Sernett* Vice President, Chief Compliance Officer, and Assistant Secretary
* Principal business address: Ameritas Investment Corp., 5900 "O" Street, Lincoln, Nebraska 68510. ** Principal business address: AVIVA USA, 611 Fifth Avenue, Des Moines, Iowa 50309. *** Principal business address: Ameritas Investment Corp., 440 Regency Parkway Drive, Suite 222, Omaha, Nebraska 68114. c) Commissions Received by Each Principal Underwriter from the Registrant during the Registrant's Last Fiscal Year:
----------------------- -------------------- --------------------- -------------------- -------------------- (1) (2) (3) (4) (5) Net Underwriting Name of Principal Discounts and Compensation on Brokerage Underwriter Commissions Redemption Commissions Compensation ----------------------- -------------------- --------------------- -------------------- -------------------- Ameritas Investment $59,223 $0 $0 $0 Corp. ("AIC") ----------------------- -------------------- --------------------- -------------------- --------------------
(2)+(4)+(5) = Gross variable annuity compensation received by AIC. (3) = Sales compensation received and paid out by AIC as underwriter; AIC retains 0. (4) = Sales compensation received by AIC for retail sales. (5) = Sales compensation received by AIC and retained as underwriting fee. Item 30. Location of Separate Account and Records The Books, records and other documents required to be maintained by Section 31(a) of the 1940 Act and Rules 31a-1 to 31a-3 thereunder are maintained at Ameritas Life Insurance Corp., 5900 "O" Street, Lincoln, Nebraska 68510. Item 31. Management Services There are no additional management services contracts that are not discussed in Part A or B of the registration statement. Item 32. Undertakings (a) Registrant undertakes to file a post-effective amendment to this registration statement as frequently as necessary to ensure that the audited financial statements in the registration statement are never more than 16 months old for so long as payment under the variable annuity contracts may be accepted. (b) Registrant undertakes to include either (1) as part of any application to purchase a contract offered by the prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a post card or similar written communication affixed to or included in the prospectus that the applicant can remove and send for a Statement of Additional Information. (c) Registrant undertakes to deliver any Statement of Additional Information and any financial statements required to be made available under this form promptly upon written or oral request. (d) The registrant is relying upon the Division of Investment Management (Division) no-action letter of November 28, 1988 concerning annuities sold in 403 (b) plans and represents that the requirements of the no-action letter have been, are and/or will be complied with. (e) Ameritas Life Insurance Corp. represents that the fees and charges deducted under the contract, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by the insurance company. SIGNATURES As required by the Securities Act of 1933, the Registrant, Ameritas Life Insurance Corp. Separate Account LLVA, certifies that it meets all the requirements of effectiveness of this Post-Effective Amendment No. 7 to Registration Statement Number 333-122109 pursuant to Rule 485(b) under the Securities Act of 1933 and has caused this Amendment to be signed on its behalf by the undersigned duly authorized in the City of Lincoln, County of Lancaster, State of Nebraska on this 16th day of April, 2009. AMERITAS LIFE INSURANCE CORP. SEPARATE ACCOUNT LLVA, Registrant AMERITAS LIFE INSURANCE CORP., Depositor By: JoAnn M. Martin* ------------------------ Chair of the Board As required by the Securities Act of 1933, this Post-Effective Amendment No. 7 to the Registration Statement has been signed by the following persons in the capacities indicated on April 16, 2009.
SIGNATURE TITLE JoAnn M. Martin * Director, Chair, President & Chief Executive Officer James P. Abel * Director William W. Cook, Jr. * Director Bert A. Getz * Director James R. Knapp * Director Tonn M. Ostergard * Director Paul C. Schorr, III * Director Winston J. Wade * Director Robert C. Barth * Senior Vice President & Chief Financial Officer Jan M. Connolly** Senior Vice President & Corporate Secretary William W. Lester * Senior Vice President, Investments & Treasurer /S/ Robert G. Lange ---------------------- Robert G. Lange Vice President, General Counsel & Assistant Secretary
* Signed by Robert G. Lange under Powers of Attorney executed effective as of February 24, 2006. ** Signed by Robert G. Lange under Power of Attorney executed effective as of February 1, 2008. Exhibit Index Exhibit 9 Opinion and Consent of Counsel 10 Consents of Independent Auditors and Independent Registered Public Accounting Firm