x | immediately upon filing pursuant to paragraph (b) of Rule 485 |
on , pursuant to paragraph (b) of Rule 485 | |
60 days after filing, pursuant to paragraph (a)(1) of Rule 485 | |
on (date), pursuant to paragraph (a)(1) of Rule 485 |
this post-effective amendment designates a new effective date for a previously filed post-effective amendment. |
• | choose the type and amount of insurance coverage you need and increase or decrease that coverage as your insurance needs change; |
• | choose the amount and timing of Premium payments, within certain limits; |
• | allocate Premium payments among the available investment options and Transfer Account Value among available investment options as your investment objectives change; and |
• | access your Account Value through loans and partial withdrawals or total surrenders. |
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A-1 |
1. | a fixed benefit equal to the Total Face Amount of your Policy; or |
2. | a variable benefit equal to the sum of the Total Face Amount and your Account Value. |
1. | the Premiums you pay; |
2. | the investment performance of the Divisions you select; |
3. | the value of the Fixed Account; |
4. | any Policy loans or partial withdrawals; |
5. | your Loan Account balance; and |
6. | the charges we deduct under the Policy. |
1. | term life insurance; and |
2. | change of Insured (not available to individual Owners). |
Charge | When Charge is Deducted | Amount Deducted |
Maximum Expense Charge Imposed on Premium* | Upon each Premium payment | Maximum:
10% of Premium Current: 6.0% |
Sales Load** | Upon each Premium Payment | Maximum:
6.5% of Premium Current: 2.5% of Premium up to target and 1.0% of Premium in excess of target |
Premium Tax** | Upon each Premium payment | Maximum: 3.5% of Premium |
Partial Withdrawal Fee | Upon partial withdrawal | Maximum: $25 deducted from Account Value for all partial withdrawals after the first made in the same Policy Year. |
Change of Death Benefit Option Fee | Upon change of option | Maximum: $100 deducted from Account Value for each change of death benefit option. |
Transfer Fee | At time of Transfer for all Transfers in excess of 12 made in the same Policy Year | Maximum: $10/Transfer |
Loan Interest | Upon issuance of Policy loan | Maximum: the Moody’s Corporate Bond Yield Average – Monthly Average Corporates |
* | The Expense Charge consists of the Sales Load plus the Premium Tax. |
** | The Sales Load and Premium Tax comprise (and are not in addition to) the Expense Charge. |
Charge | When Charge is Deducted | Amount Deducted |
Cost of Insurance (per $1000 Net Amount at Risk)1 | ||
Minimum & Maximum Cost of Insurance Charge | Monthly | Guaranteed:
Minimum: $0.01 per $1000 Maximum: $83.33 per $1000 |
Cost of Insurance Charge for a 46- year old Male Non-Smoker, $550,000 Face Amount, Option 1 (Level Death) | Monthly | Guaranteed:
$0.160 per $1000 |
Mortality and Expense Risk Charge2 | Monthly | Guaranteed:
0.90% (of average daily net assets) annually Current: 0.28% for Policy Years 1-20, and 0.10% thereafter |
Service Charge | Monthly | Maximum:
$10/month Current: $7.50/month |
1 | The Cost of Insurance Charge will vary based on individual characteristics. The cost of insurance shown in the table is a sample illustration only and may not be representative of the charge that a particular Owner will pay. Owners may obtain more information about their particular cost of insurance charge by contacting our Service Center at 888-353-2654. |
2 | The mortality and expense risk charge is accrued daily and deducted on the first day of each Policy month by cancelling accumulation units pro-rata against Sub-Accounts. |
Supplemental Benefit Charges | ||
Currently, we are offering the following supplemental optional riders. The charges for the rider you select are deducted monthly from your Account Value as part of the Monthly Deduction described in “Charges and Deductions” below. The benefits provided under each rider are summarized in “Other Provisions and Benefits” below. | ||
Change of Insured Rider3* | Upon change of Insured | Minimum:
$100 per change Maximum: $400 per change |
Change of Insured Rider for a 46-year old Male Non-Smoker, $550,000 Face Amount, Option 1 (Level Death)* | $400 per change | |
Term Life Insurance Rider | Monthly | Guaranteed:
Minimum COI: $0.01 per $1000 Maximum COI: $83.33 per $1000 |
Term Life Insurance Rider for a 46-year old Male Non-Smoker, $550,000 Face Amount, Option 1 (Level Death) | Monthly | Guaranteed:
$0.160 per $1000 |
* | Not available for individual Owners. |
Minimum | Maximum | |
Total Annual Fund Operating | 0.27% | 2.61% |
1. | Payments by the employer under an employer-financed insurance purchase arrangement will only be deductible for income tax purposes when the payments are taxable to the employee with respect to whom they are made. |
2. | Imposition of certain types of restrictions, specifically a substantial risk of forfeiture, on the purchased Policy may defer both the deductibility of the payments to the employer and their taxability to the employee. |
3. | The payment of some or all of the Premiums by the employer may create an ERISA welfare benefit plan which is subject to the reporting, disclosure, fiduciary and enforcement provisions of ERISA. |
4. | The payment of some or all of the Premiums by the employer will not prevent the Owner from being treated as the owner of the Policy for federal income tax purposes. |
5. | Under some circumstances, the failure of the employer to make one or more of the planned Premiums under the Policy may cause a lapse of the Policy. |
6. | An employee considering whether to participate in an employer-financed insurance purchase arrangement should consider whether the financial and tax benefits of the ownership of the Policy outweigh the costs, such as sales loads and cost of insurance charges that will be incurred as a result of the purchase and ownership of the Policy. |
7. | An employee considering whether to participate in an employer-financed insurance purchase arrangement should consider whether the designation of another person or entity as the owner of the Policy will have adverse consequences under applicable gift, estate, or inheritance tax laws. |
8. | An employee considering whether to participate in an employer-financed insurance purchase arrangement should consider whether the financial performance of the Policy will support any planned withdrawals or borrowings under the Policy. |
9. | In an employer-financed insurance purchase arrangement, the procedures described below in “Market Timing and Excessive Trading”, which are designed to prevent or minimize market timing and excessive trading by Owners may, in certain circumstances, require us to perform standardized trade monitoring; in other circumstances such monitoring will be performed by the Fund. Certain Funds require us to provide reports of the Owner’s trading activity, if prohibited trading, as defined by the Fund, is suspected. The determination of whether there is prohibited trading based on the Funds’ definition of prohibited trading may be made by us or by the Fund. The Fund determines the restrictions imposed, which could be one of the four restrictions described in this prospectus or by restricting the Owner from making Transfers into the identified Fund for the period of time specified by the Fund. |
Policy Year | Percentage
of Account Value Returned |
Year 1 | 7% |
Year 2 | 6% |
Year 3 | 5% |
Year 4 | 4% |
Year 5 | 3% |
Year 6 | 2% |
Year 7 | 1% |
Year 8 | 0% |
1. | is the cost of insurance charge (the monthly risk charge) equal to the current monthly risk rate (described below) multiplied by the net amount at risk divided by 1,000; |
2. | is the service charge; |
3. | is the monthly cost of any additional benefits provided by riders which are a part of your Policy; |
4. | is any extra risk charge if the Insured is in a rated class as specified in your Policy; and |
5. | is the accrued mortality and expense risk charge. |
• | the death benefit divided by 1.00327374; less |
• | your Account Value on the first day of a Policy Month prior to assessing the monthly deduction. |
• | transfer ownership to a new Owner; |
• | name a contingent owner who will automatically become the Owner of the Policy if you die before the Insured; |
• | change or revoke a contingent owner; |
• | change or revoke a Beneficiary (unless a previous Beneficiary designation was irrevocable); |
• | exercise all other rights in the Policy; |
• | increase or decrease the Total Face Amount, subject to the other provisions of the Policy; and |
• | change the death benefit option, subject to the other provisions of the Policy. |
• | Restrict the Owner to inquiry-only access for the web and voice response unit so that the Owner will only be permitted to make Transfer Requests by written Request mailed to us through U.S. mail (“U.S. Mail Restriction”); the Owner will not be permitted to make Transfer Requests via overnight mail, fax, the web, or the call center. Once the U.S. Mail Restriction has been in place for 180 days, the restricted Owner may Request that we lift the U.S. Mail Restriction by signing, dating and returning a form to us whereby the Owner acknowledges the potentially harmful effects of market timing and/or excessive trading on Funds and other investors, represents that no further market timing or excessive trading will occur, and acknowledges that we may implement further restrictions, if necessary, to stop improper trading by the Owner; |
• | Close the applicable Fund to all new monies, including contributions and Transfers in; |
• | Restrict all Owners to one purchase in the applicable Fund per 90 day period; or |
• | Remove the Fund as an investment option and convert all allocations in that Fund to a different investment option. |
• | is necessary to make the Policy or the Series Account comply with any law or regulation issued by a governmental agency to which we are, or the Series Account is, subject; |
• | is necessary to assure continued qualification of the Policy under the Code or other federal or state laws as a life insurance policy; |
• | is necessary to reflect a change in the operation of the Series Account or the Divisions; or |
• | adds, deletes or otherwise changes Division options. |
• | that portion of net Premium received and allocated to the Division, plus |
• | that portion of net Premium received and allocated to the Fixed Account, less |
• | the service charges due on the Policy Date, less |
• | the monthly risk charge due on the Policy Date, less |
• | the monthly mortality and expense risk charge due on the Policy Date, less |
• | the monthly risk charge for any riders due on the Policy Date. |
• | the Account Value attributable to the Division on the preceding Valuation Date multiplied by that Division’s net investment factor, plus |
• | that portion of net Premium received and allocated to the Division during the current Valuation Period, plus |
• | that portion of the value of the Loan Account Transferred to the Division upon repayment of a Policy loan during the current Valuation Period, plus |
• | any amounts Transferred by you to the Division from another Division during the current Valuation Period, less |
• | any amounts Transferred by you from the Division to another Division during the current Valuation Period, less |
• | that portion of any partial withdrawals deducted from the Division during the current Valuation Period, less |
• | that portion of any Account Value Transferred from the Division to the Loan Account during the current Valuation Period, less |
• | that portion of fees due in connection with a partial withdrawal charged to the Division, less |
• | the pro-rata portion of the mortality and expense risk charge accrued and charged to the Division, less |
• | if the first day of a Policy Month occurs during the current Valuation Period, that portion of the service charge for the Policy Month just beginning charged to the Division, less |
• | if the first day of a Policy Month occurs during the current Valuation Period, that portion of the monthly risk charge for the Policy Month just beginning charged to the Division, less |
• | if the first day of a Policy Month occurs during the current Valuation Period, that portion of the mortality and expense risk charge for the Policy Month just ending charged to the Division, less |
• | if the first day of a Policy Month occurs during the current Valuation Period, that Division’s portion of the cost for any riders and any extra risk charge if the Insured is in a rated class as specified in your Policy, for the Policy Month just beginning. |
1. | is the net result of: |
• | the net asset value of a Fund share held in the Division determined as of the end of the current Valuation Period, plus |
• | the per share amount of any dividend or other distribution declared on Fund shares held in the Division if the “ex-dividend” date occurs during the current Valuation Period, plus or minus |
• | a per share credit or charge with respect to any taxes incurred by or reserved for, or paid by us if not previously reserved for, during the current Valuation Period which are determined by us to be attributable to the operation of the Division; and |
2. | is the net result of: |
• | the net asset value of a Fund share held in the Division determined as of the end of the preceding Valuation Period, plus or minus |
• | a per share credit or charge with respect to any taxes incurred by or reserved for, or paid by us if not previously reserved for, during the preceding Valuation Period which are determined by us to be attributable to the operation of the Division. |
• | Premiums, less Expense Charges, allocated to the Fixed Account; plus •Sub-Account Value transferred to the Fixed Account; plus |
• | Interest credited to the Fixed Account; minus |
• | Partial withdrawals from the Fixed Account including any applicable partial withdrawal charges; minus |
• | The portion of any accrued policy fees and charges allocated to the Fixed Account; minus |
• | Loans from the Fixed Account; minus |
• | Transfers from the Fixed Account, including any applicable transfer charges. |
• | the Policy Date of the Policy to which this rider is attached; or |
• | the date this rider is delivered and the first rider premium is paid to the Company. |
• | the date the Policy is surrendered or terminated; |
• | the expiration of the grace period of the Policy; or |
• | the death of the Insured. |
• | the amount of the selected death benefit option, less |
• | the value of any Policy Debt on the date of the Insured’s death, less |
• | any accrued and unpaid Policy charges. |
(i) | The date that due proof of death is received by the Company; |
(ii) | The date the Company receives sufficient information to determine our liability, the extent of the liability, and the appropriate payee legally entitled to the Proceeds; and |
(iii) | The date that
legal impediments to the payment of Death Benefit Proceeds that depend on the action of parties other than the Company are resolved and sufficient evidence of the same is provided to the Company. Legal impediments to payment include, but are not limited to (a) the establishment of guardianships and conservatorships; (b) the appointment and qualification of trustees, executors and administrators; and (c) the submission of information required to satisfy state and federal reporting requirements. |
• | the Policy’s Total Face Amount on the date of the Insured’s death less any partial withdrawals; or, if greater, |
• | the Account Value on the date of death multiplied by the applicable factor shown in the table set forth in your Policy. |
• | the sum of the Total Face Amount and Account Value of the Policy on the date of the Insured’s death less any partial withdrawals; or, if greater, |
• | the Account Value on the date of death multiplied by the applicable factor shown in the table set forth in your Policy. |
• | If the change is from option 1 to option 2, the new Total Face Amount, at the time of the change, will equal the prior Total Face Amount less the Account Value. Evidence of insurability may be required. |
• | If the change is from option 2 to option 1, the new Total Face Amount, at the time of the change, will equal the prior Total Face Amount plus the Account Value. |
• | first, to the most recent increase; |
• | second, to the next most recent increases, in reverse chronological order; and |
• | finally, to the initial Total Face Amount. |
• | you make your reinstatement Request within three years from the date of termination; |
• | you submit satisfactory Evidence of Insurability to us; |
• | you pay an amount equal to the Policy charges which were due and unpaid at the end of the grace period; |
• | you pay a Premium equal to four times the monthly deduction applicable on the date of reinstatement; and |
• | you repay or reinstate any Policy loan that was outstanding on the date coverage ceased, including interest at 6.00% per year compounded annually from the date coverage ceased to the date of reinstatement of your Policy. |
• | the Account Value at the time of termination; plus |
• | net Premiums attributable to Premiums paid to reinstate the Policy; less |
• | the monthly expense charge; less |
• | the monthly cost of insurance charge applicable on the date of reinstatement; less |
• | the expense charge applied to Premium. |
• | the NYSE is closed other than customary weekend and holiday closing, or trading on the NYSE is otherwise restricted; |
• | the SEC, by order, permits postponement for the protection of Owners; or |
• | an emergency exists as determined by the SEC, as a result of which disposal of securities is not reasonably practicable, or it is not reasonably practicable to determine the value of the assets of the Series Account. |
• | the exchange of a Policy for a life insurance, endowment or annuity contract; |
• | a change in the death benefit option; |
• | a Policy loan; |
• | a partial surrender; |
• | a complete surrender; |
• | a change in the ownership of a Policy; |
• | a change of the named Insured; or |
• | an assignment of a Policy. |
• | First, partial withdrawals are treated as ordinary income subject to ordinary income tax up to the amount equal to the excess (if any) of your Account Value immediately before the distribution over the “investment in the contract” at the time of the distribution. |
• | Second, Policy loans and loans secured by a Policy are treated as partial withdrawals and taxed accordingly. Any past-due loan interest that is added to the amount of the loan is treated as a loan. |
• | Third, a ten percent additional penalty tax is imposed on that portion of any distribution (including distributions upon surrender), Policy loans, or loans secured by a Policy, that is included in income, except where the distribution or loan is made to a taxpayer that is a natural person, and: |
1. | is made when the taxpayer is age 59 1⁄2 or older; |
2. | is attributable to the taxpayer becoming disabled; or |
3. | is part of a series of substantially equal periodic payments (not less frequently than annually) for the duration of the taxpayer’s life (or life expectancy) or for the duration of the longer of the taxpayer’s or the Beneficiary’s life (or life expectancies). |
• | We do not make any guarantees about the Policy’s tax status. |
• | We believe the Policy will be treated as a life insurance contract under federal tax laws. |
• | Death benefits generally are not subject to federal income tax. |
• | Investment gains are normally not taxed unless distributed to you before the Insured dies. |
• | If you pay more Premiums than permitted under the seven-pay test, your Policy will be a MEC. |
• | If your Policy becomes a MEC, partial withdrawals, Policy loans and surrenders may incur taxes and tax penalties. |
(a) | Account Value on the effective date of the surrender; less |
(b) | outstanding Policy loans and accrued loan interest, if any; less |
(c) | any monthly cost of insurance charges. |
• | choose the type and amount of insurance coverage you need and increase or decrease that coverage as your insurance needs change; |
• | choose the amount and timing of Premium payments, within certain limits; |
• | allocate Premium payments among the available investment options and Transfer Account Value among available investment options as your investment objectives change; and |
• | access your Account Value through loans and partial withdrawals or total surrenders. |
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A-1 |
|
B-1 |
1. | a fixed benefit equal to the Total Face Amount of your Policy; or |
2. | a variable benefit equal to the sum of the Total Face Amount and your Account Value. |
1. | the Premiums you pay; |
2. | the investment performance of the Divisions you select; |
3. | the value of the Fixed Account; |
4. | any Policy loans or partial withdrawals; |
5. | your Loan Account balance; and |
6. | the charges we deduct under the Policy. |
1. | term life insurance; and |
2. | change of Insured (not available to individual Owners). |
Charge | When Charge is Deducted | Amount Deducted |
Maximum Expense Charge Imposed on Premium* | Upon each Premium payment | Maximum:
10% of Premium Current: 9.0% of Premium up to target and 6.5% of Premium in excess of target |
Sales Load** | Upon each Premium Payment | Maximum:
6.5% of Premium Current: 5.5% of Premium up to target and 3.0% of Premium in excess of target |
Premium Tax** | Upon each Premium payment | Maximum: 3.5% of Premium |
Partial Withdrawal Fee | Upon partial withdrawal | Maximum: $25 deducted from Account Value for all partial withdrawals after the first made in the same Policy Year. |
Change of Death Benefit Option Fee | Upon change of option | Maximum: $100 deducted from Account Value for each change of death benefit option. |
Transfer Fee | At time of Transfer for all Transfers in excess of 12 made in the same Policy Year | Maximum: $10/Transfer |
Loan Interest | Upon issuance of Policy loan | Maximum: the Moody’s Corporate Bond Yield Average – Monthly Average Corporates |
* | The Expense Charge consists of the Sales Load plus the Premium Tax. |
** | The Sales Load and Premium Tax comprise (and are not in addition to) the Expense Charge. |
Charge | When Charge is Deducted | Amount Deducted |
Cost of Insurance (per $1000 Net Amount at Risk)1 | ||
Minimum & Maximum Cost of Insurance Charge | Monthly | Guaranteed:
Minimum: $0.02 per $1000 Maximum: $83.33 per $1000 |
Cost of Insurance Charge for a 46- year old Male Non-Smoker, $550,000 Face Amount, Option 1 (Level Death) | Monthly | Guaranteed:
$0.21 per $1000 |
Mortality and Expense Risk Charge2 | Monthly | Guaranteed:
0.90% (of average daily net assets) annually Current: 0.40% for Policy Years 1-5, 0.25% for Policy Years 6-20, and 0.10% thereafter |
Service Charge | Monthly | Maximum:
$15/month Current: $10.00/month, Policy Years 1-3 and $7.50/month, Policy Years 4+ |
1 | The Cost of Insurance Charge will vary based on individual characteristics. The cost of insurance shown in the table is a sample illustration only and may not be representative of the charge that a particular Owner will pay. Owners may obtain more information about their particular cost of insurance charge by contacting our Service Center at 888-353-2654. |
2 | The mortality and expense risk charge is accrued daily and deducted on the first day of each Policy month by cancelling accumulation units pro-rata against Sub-Accounts. |
Supplemental Benefit Charges | ||
Currently, we are offering the following supplemental optional riders. The charges for the rider you select are deducted monthly from your Account Value as part of the Monthly Deduction described in “Charges and Deductions” below. The benefits provided under each rider are summarized in “Other Provisions and Benefits” below. | ||
Change of Insured Rider3* | Upon change of Insured | Minimum:
$100 per change Maximum: $400 per change |
Change of Insured Rider for a 46-year old Male Non-Smoker, $550,000 Face Amount, Option 1 (Level Death)* | $400 per change | |
Term Life Insurance Rider | Monthly | Guaranteed:
Minimum COI: $0.02 per $1000 Maximum COI: $83.33 per $1000 |
Term Life Insurance Rider for a 46-year old Male Non-Smoker, $550,000 Face Amount, Option 1 (Level Death) | Monthly | Guaranteed:
$0.21 per $1000 |
* | Not available to individual Owners. |
Minimum | Maximum | |
Total Annual Fund Operating | 0.27% | 2.61% |
1. | Payments by the employer under an employer-financed insurance purchase arrangement will only be deductible for income tax purposes when the payments are taxable to the employee with respect to whom they are made. |
2. | Imposition of certain types of restrictions, specifically a substantial risk of forfeiture, on the purchased Policy may defer both the deductibility of the payments to the employer and their taxability to the employee. |
3. | The payment of some or all of the Premiums by the employer may create an ERISA welfare benefit plan which is subject to the reporting, disclosure, fiduciary and enforcement provisions of ERISA. |
4. | The payment of some or all of the Premiums by the employer will not prevent the Owner from being treated as the owner of the Policy for federal income tax purposes. |
5. | Under some circumstances, the failure of the employer to make one or more of the planned Premiums under the Policy may cause a lapse of the Policy. |
6. | An employee considering whether to participate in an employer-financed insurance purchase arrangement should consider whether the financial and tax benefits of the ownership of the Policy outweigh the costs, such as sales loads and cost of insurance charges that will be incurred as a result of the purchase and ownership of the Policy. |
7. | An employee considering whether to participate in an employer-financed insurance purchase arrangement should consider whether the designation of another person or entity as the owner of the Policy will have adverse consequences under applicable gift, estate, or inheritance tax laws. |
8. | An employee considering whether to participate in an employer-financed insurance purchase arrangement should consider whether the financial performance of the Policy will support any planned withdrawals or borrowings under the Policy. |
9. | In an employer-financed insurance purchase arrangement, the procedures described in the “Market Timing & Excessive Trading” section below, which are designed to prevent or minimize market timing and excessive trading by Owners may, in certain circumstances, require us to perform standardized trade monitoring; in other circumstances such monitoring will be performed by the Fund. Certain Funds require us to provide reports of the Owner’s trading activity, if prohibited trading, as defined by the Fund, is suspected. The determination of whether there is prohibited trading based on the Funds’ definition of prohibited trading may be made by us or by the Fund. The Fund determines the restrictions imposed, which could be one of the four restrictions described below or by restricting the Owner from making Transfers into the identified Fund for the period of time specified by the Fund. |
Policy Year | Percentage of Account Value Returned |
Year 1 | 6% |
Year 2 | 5% |
Year 3 | 4% |
Year 4 | 3% |
Year 5 | 2% |
Year 6 | 1% |
Year 7+ | 0% |
1. | is the cost of insurance charge (the monthly risk charge) equal to the current monthly risk rate (described below) multiplied by the net amount at risk divided by 1,000; |
2. | is the service charge; |
3. | is the monthly cost of any additional benefits provided by riders which are a part of your Policy; |
4. | is any extra risk charge if the Insured is in a rated class as specified in your Policy; and |
5. | is the accrued mortality and expense risk charge. |
• | the death benefit divided by 1.00327374; less |
• | your Account Value on the first day of a Policy Month prior to assessing the monthly deduction. |
• | transfer ownership to a new Owner; |
• | name a contingent owner who will automatically become the Owner of the Policy if you die before the Insured; |
• | change or revoke a contingent owner; |
• | change or revoke a Beneficiary (unless a previous Beneficiary designation was irrevocable); |
• | exercise all other rights in the Policy; |
• | increase or decrease the Total Face Amount, subject to the other provisions of the Policy; and |
• | change the death benefit option, subject to the other provisions of the Policy. |
• | Restrict the Owner to inquiry-only access for the web and voice response unit so that the Owner will only be permitted to make Transfer Requests by written Request mailed to us through U.S. mail (“U.S. Mail Restriction”); the Owner will not be permitted to make Transfer Requests via overnight mail, fax, the web, or the call center. Once the U.S. Mail Restriction has been in place for 180 days, the restricted Owner may Request that we lift the U.S. Mail Restriction by signing, dating and returning a form to us whereby the Owner acknowledges the potentially harmful effects of market timing and/or excessive trading on Funds and other investors, represents that no further market timing or excessive trading will occur, and acknowledges that we may implement further restrictions, if necessary, to stop improper trading by the Owner; |
• | Close the applicable Fund to all new monies, including contributions and Transfers in; |
• | Restrict all Owners to one purchase in the applicable Fund per 90 day period; or |
• | Remove the Fund as an investment option and convert all allocations in that Fund to a different investment option. |
• | is necessary to make the Policy or the Series Account comply with any law or regulation issued by a governmental agency to which we are, or the Series Account is, subject; |
• | is necessary to assure continued qualification of the Policy under the Code or other federal or state laws as a life insurance policy; |
• | is necessary to reflect a change in the operation of the Series Account or the Divisions; or |
• | adds, deletes or otherwise changes Division options. |
• | that portion of net Premium received and allocated to the Division, plus |
• | that portion of net Premium received and allocated to the Fixed Account, less |
• | the service charges due on the Policy Date, less |
• | the monthly risk charge due on the Policy Date, less |
• | the monthly risk charge for any riders due on the Policy Date. |
• | the Account Value attributable to the Division on the preceding Valuation Date multiplied by that Division’s net investment factor, plus |
• | that portion of net Premium received and allocated to the Division during the current Valuation Period, plus |
• | that portion of the value of the Loan Account Transferred to the Division upon repayment of a Policy loan during the current Valuation Period, plus |
• | any amounts Transferred by you to the Division from another Division during the current Valuation Period, less |
• | any amounts Transferred by you from the Division to another Division during the current Valuation Period, less |
• | that portion of any partial withdrawals deducted from the Division during the current Valuation Period, less |
• | that portion of any Account Value Transferred from the Division to the Loan Account during the current Valuation Period, less |
• | that portion of fees due in connection with a partial withdrawal charged to the Division, less |
• | the mortality and expense risk charge for each day in the Valuation Period, less |
• | if the first day of a Policy Month occurs during the current Valuation Period, that portion of the service charge for the Policy Month just beginning charged to the Division, less |
• | if the first day of a Policy Month occurs during the current Valuation Period, that portion of the monthly risk charge for the Policy Month just beginning charged to the Division, less |
• | if the first day of a Policy Month occurs during the current Valuation Period, that portion of the mortality and expense risk charge for the Policy Month just ending charged to the Division, less |
• | if the first day of a Policy Month occurs during the current Valuation Period, that Division’s portion of the cost for any riders and any extra risk charge if the Insured is in a rated class as specified in your Policy, for the Policy Month just beginning. |
1. | is the net result of: |
• | the net asset value of a Fund share held in the Division determined as of the end of the current Valuation Period, plus |
• | the per share amount of any dividend or other distribution declared on Fund shares held in the Division if the “ex-dividend” date occurs during the current Valuation Period, plus or minus |
• | a per share credit or charge with respect to any taxes incurred by or reserved for, or paid by us if not previously reserved for, during the current Valuation Period which are determined by us to be attributable to the operation of the Division; and |
2. | is the net result of: |
• | the net asset value of a Fund share held in the Division determined as of the end of the preceding Valuation Period, plus or minus |
• | a per share credit or charge with respect to any taxes incurred by or reserved for, or paid by us if not previously reserved for, during the preceding Valuation Period which are determined by us to be attributable to the operation of the Division. |
• | Premiums, less expense charges, allocated to the Fixed Account; plus |
• | Sub-Account Value transferred to the Fixed Account; plus |
• | Interest credited to the Fixed Account; minus |
• | Partial withdrawals from the Fixed Account including any applicable partial withdrawal charges; minus |
• | The portion of any accrued policy fees and charges allocated to the Fixed Account; minus |
• | Loans from the Fixed Account; minus |
• | Transfers from the Fixed Account, including any applicable transfer charges. |
• | the Policy Date of the Policy to which this rider is attached; or |
• | the date this rider is delivered and the first rider premium is paid to the Company. |
• | the date the Policy is surrendered or terminated; |
• | the expiration of the grace period of the Policy; or |
• | the death of the Insured. |
• | the amount of the selected death benefit option, less |
• | the value of any Policy Debt on the date of the Insured’s death, less |
• | any accrued and unpaid Policy charges. |
• | the Policy’s Total Face Amount on the date of the Insured’s death less any partial withdrawals; or, if greater, |
• | the Account Value on the date of death multiplied by the applicable factor shown in the table set forth in your Policy. |
• | the sum of the Total Face Amount and Account Value of the Policy on the date of the Insured’s death less any partial withdrawals; or, if greater, |
• | the Account Value on the date of death multiplied by the applicable factor shown in the table set forth in your Policy. |
• | If the change is from option 1 to option 2, the new Total Face Amount, at the time of the change, will equal the prior Total Face Amount less the Account Value. Evidence of insurability may be required. |
• | If the change is from option 2 to option 1, the new Total Face Amount, at the time of the change, will equal the prior Total Face Amount plus the Account Value. |
• | first, to the most recent increase; |
• | second, to the next most recent increases, in reverse chronological order; and |
• | finally, to the initial Total Face Amount. |
• | you make your reinstatement Request within three years from the date of termination; |
• | you submit satisfactory Evidence of Insurability to us; |
• | you pay an amount equal to the Policy charges which were due and unpaid at the end of the grace period; |
• | you pay a Premium equal to four times the monthly deduction applicable on the date of reinstatement; and |
• | you repay or reinstate any Policy loan that was outstanding on the date coverage ceased, including interest at 6.00% per year compounded annually from the date coverage ceased to the date of reinstatement of your Policy. |
• | the Account Value at the time of termination; plus |
• | net Premiums attributable to Premiums paid to reinstate the Policy; less |
• | the monthly expense charge; less |
• | the monthly cost of insurance charge applicable on the date of reinstatement; less |
• | the expense charge applied to Premium. |
• | the NYSE is closed other than customary weekend and holiday closing, or trading on the NYSE is otherwise restricted; |
• | the SEC, by order, permits postponement for the protection of Owners; or |
• | an emergency exists as determined by the SEC, as a result of which disposal of securities is not reasonably practicable, or it is not reasonably practicable to determine the value of the assets of the Series Account. |
• | the exchange of a Policy for a life insurance, endowment or annuity contract; |
• | a change in the death benefit option; |
• | a Policy loan; |
• | a partial surrender; |
• | a complete surrender; |
• | a change in the ownership of a Policy; |
• | a change of the named Insured; or |
• | an assignment of a Policy. |
• | First, partial withdrawals are treated as ordinary income subject to ordinary income tax up to the amount equal to the excess (if any) of your Account Value immediately before the distribution over the “investment in the contract” at the time of the distribution. |
• | Second, Policy loans and loans secured by a Policy are treated as partial withdrawals and taxed accordingly. Any past-due loan interest that is added to the amount of the loan is treated as a loan. |
• | Third, a ten percent additional penalty tax is imposed on that portion of any distribution (including distributions upon surrender), Policy loans, or loans secured by a Policy, that is included in income, except where the distribution or loan is made to a taxpayer that is a natural person, and: |
1. | is made when the taxpayer is age 59 1⁄2 or older; |
2. | is attributable to the taxpayer becoming disabled; or |
3. | is part of a series of substantially equal periodic payments (not less frequently than annually) for the duration of the taxpayer’s life (or life expectancy) or for the duration of the longer of the taxpayer’s or the Beneficiary’s life (or life expectancies). |
• | We do not make any guarantees about the Policy’s tax status. |
• | We believe the Policy will be treated as a life insurance contract under federal tax laws. |
• | Death benefits generally are not subject to federal income tax. |
• | Investment gains are normally not taxed unless distributed to you before the Insured dies. |
• | If you pay more Premiums than permitted under the seven-pay test, your Policy will be a MEC. |
• | If your Policy becomes a MEC, partial withdrawals, Policy loans and surrenders may incur taxes and tax penalties. |
(a) | Account Value on the effective date of the surrender; less |
(b) | outstanding Policy loans and accrued loan interest, if any; less |
(c) | any monthly cost of insurance charges. |
1. | Different Cost of Insurance Charge Amounts |
2. | Fee Tables |
Charge | When Charge is Deducted | Amount Deducted |
Cost of Insurance (per $1000 Net Amount at Risk)1 | ||
Minimum & Maximum Cost of Insurance Charge | Monthly | Guaranteed:
Minimum: $0.08 per $1000 Maximum: $83.33 per $1000 |
Cost of Insurance Charge for a 46- year old Male Non-Smoker, $550,000 Face Amount, Option 1 (Level Death) | Monthly | Guaranteed:
$0.41 per $1000 |
Mortality and Expense Risk Charge2 | Monthly | Guaranteed:
0.90% annually Current: 0.40% for Policy Years 1-5, 0.25% for Policy Years 6-20, and 0.10% thereafter |
Service Charge | Monthly | Maximum:
$15/month Current: $10.00/month Policy Years 1-3 and $7.50/month, Policy Years 4+ |
Supplemental Benefit Charges | ||
Currently, we are offering the following supplemental optional riders. The charges for the rider you select are deducted monthly from your Account Value as part of the Monthly Deduction described in “Charges and Deductions” below. The benefits provided under each rider are summarized in “Other Provisions and Benefits” below. | ||
Change of Insured Rider* | Upon change of Insured | Minimum:
$100 per change Maximum: $400 per change |
Change of Insured Rider for a 46-year old Male Non-Smoker, $550,000 Face Amount, Option 1 (Level Death)* | $400 per change | |
Term Life Insurance Rider | Monthly | Guaranteed:
Minimum COI: $0.08 per $1000 Maximum COI: $83.33 per $1000 |
Term Life Insurance Rider for a 46-year old Male Non-Smoker, $550,000 Face Amount, Option 1 (Level Death) | Monthly | Guaranteed:
$0.41 per $1000 |
* | Not available to individual Owners. |
3. | Paid-Up Life Insurance |
4. | Term Life Insurance Rider |
5. | Fixed Account |
6. | Definition of Account Value |
AUDITED FINANCIAL REPORT
Great-West Life & Annuity Insurance Company
(A wholly-owned subsidiary of GWL&A Financial Inc.)
|
Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus as of December 31, 2018 and 2017 and
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, 2018 and Report of Independent Registered Public Accounting Firm
Index to Financial Statements, Notes, and Schedules
Page Number | ||
3 | ||
Statutory Financial Statements at December 31, 2018, and 2017 and for the Years Ended December 31, 2018, 2017, and 2016 |
||
Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus |
5 | |
7 | ||
8 | ||
9 | ||
11 | ||
11 | ||
20 | ||
21 | ||
23 | ||
32 | ||
36 | ||
36 | ||
36 | ||
37 | ||
37 | ||
Note 11 - Liability for Unpaid Claims and Claim Adjustment Expenses |
39 | |
40 | ||
40 | ||
Note 14 - Capital and Surplus, Dividend Restrictions, and Other Matters |
43 | |
44 | ||
50 | ||
54 | ||
58 | ||
58 | ||
58 | ||
59 |
2
Deloitte & Touche LLP 1601 Wewatta Street Suite 400 Denver, CO 80202-3942 USA
Tel: 1 303 292 5400 Fax: 1 303 312 4000 www.deloitte.com |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholder of
Great-West Life & Annuity Insurance Company
Greenwood Village, Colorado
Opinion on the Statutory Financial Statements
We have audited the accompanying statutory statements of admitted assets, liabilities, and capital and surplus of Great-West Life & Annuity Insurance Company (the "Company") (a wholly-owned subsidiary of GWL&A Financial Inc.), as of December 31, 2018 and 2017, 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, 2018, and the related notes (collectively referred to as the "statutory financial statements"). In our opinion, because of the effects of the matters discussed in the following paragraph, the statutory financial statements do not present fairly, in conformity with accounting principles generally accepted in the United States of America, the financial position of the Company as of December 31, 2018 and 2017, or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2018.
As described in Note 1 to the statutory financial statements, the statutory financial statements are prepared by the Company using the accounting practices prescribed or permitted by the Colorado Division of Insurance, which is a basis of accounting other than accounting principles generally accepted in the United States of America, to meet the requirements of the Colorado Division of Insurance. The effects on the statutory financial statements of the variances between the statutory-basis of accounting described in Note 1 to the statutory financial statements and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.
In our opinion, the statutory financial statements present fairly, in all material respects, the admitted assets, liabilities, and capital and surplus of the Company as of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2018 in conformity with accounting practices prescribed or permitted by the Colorado Division of Insurance, as described in Note 1 to the statutory financial statements.
Basis for Opinion
These statutory financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's statutory financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB and 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 statutory financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing
3
an opinion on the effectiveness of the Companys internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the statutory financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the statutory financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the statutory financial statements. We believe that our audits provide a reasonable basis for our opinion.
Emphasis of Matter
As discussed in Note 1 to the statutory financial statements, the accompanying statutory financial statements have been prepared from separate records maintained by the Company and may not necessarily be indicative of conditions that would have existed or the results of operations if the Company had been operated as an unaffiliated company, as portions of certain expenses represent allocations made from affiliates.
Denver, Colorado
March 19, 2019
We have served as the Companys auditor since 1981
4
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus
December 31, 2018 and 2017
(In Thousands, Except Share Amounts)
December 31, | ||||||||
2018 | 2017 | |||||||
Admitted assets: |
||||||||
Cash and invested assets: |
||||||||
Bonds |
$ | 20,654,118 | $ | 19,944,862 | ||||
Common stock |
131,883 | 107,977 | ||||||
Mortgage loans (net of allowances of $746 and $746) |
4,206,865 | 3,871,338 | ||||||
Real estate occupied by the company |
37,555 | 36,302 | ||||||
Real estate held for the production of income |
1,407 | 1,466 | ||||||
Contract loans |
4,122,637 | 4,078,669 | ||||||
Cash, cash equivalents and short-term investments |
229,003 | 242,084 | ||||||
Securities lending collateral assets |
45,102 | | ||||||
Other invested assets |
606,787 | 566,187 | ||||||
|
|
|
|
|
| |||
Total cash and invested assets |
30,035,357 | 28,848,885 | ||||||
|
|
|
|
|
| |||
Investment income due and accrued |
284,303 | 279,822 | ||||||
Premiums deferred and uncollected |
25,795 | 15,919 | ||||||
Reinsurance recoverable |
8,090 | 7,090 | ||||||
Current federal income taxes recoverable |
71,875 | 16,535 | ||||||
Deferred income taxes |
150,497 | 149,315 | ||||||
Due from parent, subsidiaries and affiliates |
50,107 | 67,355 | ||||||
Cash value of company owned life insurance |
272,606 | 264,798 | ||||||
Other assets |
231,965 | 163,388 | ||||||
Assets from separate accounts |
24,654,916 | 28,197,122 | ||||||
|
|
|
|
|
| |||
Total admitted assets |
$ | 55,785,511 | $ | 58,010,229 | ||||
|
|
|
|
|
|
See notes to statutory financial statements. | Continued |
5
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus
December 31, 2018 and 2017
(In Thousands, Except Share Amounts)
December 31, | ||||||||
2018 | 2017 | |||||||
Liabilities, capital and surplus: |
||||||||
Liabilities: |
||||||||
Aggregate reserves for life policies and contracts |
$ | 27,501,121 | $ | 26,587,834 | ||||
Aggregate reserves for accident and health policies |
276,762 | 272,539 | ||||||
Liability for deposit-type contracts |
189,895 | 206,134 | ||||||
Life and accident and health policy and contract claims |
123,705 | 120,537 | ||||||
Provision for policyholders dividends |
31,184 | 38,872 | ||||||
Liability for premiums received in advance |
13,926 | 12,768 | ||||||
Liability for contract deposit funds |
150,981 | 174,296 | ||||||
Unearned investment income |
622 | 4,483 | ||||||
Asset valuation reserve |
204,393 | 203,546 | ||||||
Interest maintenance reserve |
50,674 | 82,238 | ||||||
Due to parent, subsidiaries and affiliates |
41,735 | 52,081 | ||||||
Commercial paper |
98,859 | 99,886 | ||||||
Payable under securities lending agreements |
45,102 | | ||||||
Repurchase agreements |
664,650 | | ||||||
Other liabilities |
410,076 | 828,393 | ||||||
Liabilities from separate accounts |
24,654,907 | 28,197,113 | ||||||
|
|
|
|
|
| |||
Total liabilities |
54,458,592 | 56,880,720 | ||||||
|
|
|
|
|
| |||
Commitments and contingencies (see Note 20) |
||||||||
Capital and surplus: |
||||||||
Preferred stock, $1 par value, 50,000,000 shares authorized; none
issued and outstanding |
| | ||||||
Common stock, $1 par value; 50,000,000 shares authorized; 7,320,176 shares issued and outstanding |
7,320 | 7,320 | ||||||
Surplus notes |
591,699 | 539,930 | ||||||
Gross paid in and contributed surplus |
710,271 | 706,178 | ||||||
Unassigned funds |
17,629 | (123,919 | ) | |||||
|
|
|
|
|
| |||
Total capital and surplus |
1,326,919 | 1,129,509 | ||||||
|
|
|
|
|
| |||
Total liabilities, capital and surplus |
$ | 55,785,511 | $ | 58,010,229 | ||||
|
|
|
|
|
|
See notes to statutory financial statements. | Concluded |
6
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Statutory Statements of Operations
Years Ended December 31, 2018, 2017 and 2016
(In Thousands)
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
|
|
|
|
| ||||||||
Income: |
||||||||||||
Premium income and annuity consideration |
$ | 7,592,609 | $ | 5,270,518 | $ | (397,783 | ) | |||||
Net investment income |
1,307,387 | 1,266,963 | 1,235,841 | |||||||||
Amortization of interest maintenance reserve |
24,863 | 22,045 | 23,253 | |||||||||
Commission and expense allowances on reinsurance ceded |
5,211 | 31,582 | 5,785 | |||||||||
Fee income from separate accounts |
160,573 | 160,280 | 151,744 | |||||||||
Reserve adjustment on reinsurance ceded |
(1,975,763 | ) | (490,424 | ) | 5,627,638 | |||||||
Miscellaneous income |
250,272 | 220,204 | 154,696 | |||||||||
|
|
|
|
| ||||||||
Total income |
7,365,152 | 6,481,168 | 6,801,174 | |||||||||
|
|
|
|
| ||||||||
Expenses: |
||||||||||||
Death benefits |
380,057 | 276,519 | 341,292 | |||||||||
Annuity benefits |
228,530 | 203,679 | 202,093 | |||||||||
Disability benefits and benefits under accident and health policies |
41,719 | 44,208 | 41,580 | |||||||||
Surrender benefits |
5,895,938 | 4,992,338 | 4,330,313 | |||||||||
Increase in aggregate reserves for life and accident and health policies and contracts |
917,510 | 915,763 | 1,139,669 | |||||||||
Other benefits |
10,528 | 12,032 | 11,991 | |||||||||
|
|
|
|
| ||||||||
Total benefits |
7,474,282 | 6,444,539 | 6,066,938 | |||||||||
|
|
|
|
| ||||||||
Commissions |
196,489 | 199,814 | 181,567 | |||||||||
Other insurance expenses |
488,250 | 522,610 | 544,488 | |||||||||
Net transfers from separate accounts |
(1,112,465 | ) | (944,644 | ) | (101,482 | ) | ||||||
|
|
|
|
| ||||||||
Total benefit and expenses |
7,046,556 | 6,222,319 | 6,691,511 | |||||||||
|
|
|
|
| ||||||||
Net gain from operations before dividends to policyholders, federal income taxes and realized capital gains (losses) |
318,596 | 258,849 | 109,663 | |||||||||
Dividends to policyholders |
31,276 | 38,782 | 45,842 | |||||||||
|
|
|
|
| ||||||||
Net gain from operations after dividends to policyholders and before federal income taxes and net realized capital gains (losses) |
287,320 | 220,067 | 63,821 | |||||||||
Federal income tax (benefit) expense |
(17,604 | ) | 50,584 | (37,932 | ) | |||||||
|
|
|
|
| ||||||||
Net gain from operations before net realized capital gains (losses) |
304,924 | 169,483 | 101,753 | |||||||||
Net realized capital gains (losses) less capital gains tax and transfers to interest maintenance reserve |
10,576 | 535 | (1,096 | ) | ||||||||
|
|
|
|
| ||||||||
Statutory net income |
$ | 315,500 | $ | 170,018 | $ | 100,657 | ||||||
|
|
|
|
|
See notes to statutory financial statements.
7
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Statutory Statements of Changes in Capital and Surplus
Years Ended December 31, 2018, 2017 and 2016
(In Thousands)
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Capital and surplus, beginning of year |
$ | 1,129,509 | $ | 1,053,333 | $ | 1,114,764 | ||||||
|
|
|
|
|
|
|
|
| ||||
Statutory net income |
315,500 | 170,018 | 100,657 | |||||||||
Dividends to stockholder |
(152,295 | ) | (145,301 | ) | (125,691 | ) | ||||||
Change in net unrealized capital (losses) gains, net of income taxes |
(11,491 | ) | (17,021 | ) | (32,223 | ) | ||||||
Change in minimum pension liability, net of income taxes |
3,824 | 2,459 | (1,863 | ) | ||||||||
Change in asset valuation reserve |
(846 | ) | (18,503 | ) | 6,171 | |||||||
Change in non-admitted assets |
28,921 | 96,814 | (47,306 | ) | ||||||||
Change in net deferred income taxes |
(40,732 | ) | (110,528 | ) | 16,605 | |||||||
Change in liability for reinsurance in unauthorized companies |
| 2 | | |||||||||
Capital paid-in |
| 27 | 60 | |||||||||
Surplus paid-in |
4,093 | 86,480 | 22,359 | |||||||||
Change in capital and surplus as a result of separate accounts |
(208 | ) | (211 | ) | (150 | ) | ||||||
Change in unrealized foreign exchange capital (losses) gains |
(1,125 | ) | (88 | ) | (78 | ) | ||||||
Change in surplus note |
51,769 | 12,028 | 28 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Net change in capital and surplus for the year |
197,410 | 76,176 | (61,431 | ) | ||||||||
|
|
|
|
|
|
|
|
| ||||
Capital and surplus, end of year |
$ | 1,326,919 | $ | 1,129,509 | $ | 1,053,333 | ||||||
|
|
|
|
|
|
|
|
|
See notes to statutory financial statements.
8
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Statutory Statements of Cash Flows
Years Ended December 31, 2018, 2017 and 2016
(In Thousands)
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
|
|
|
|
|
| |||||||
Operating activities: |
||||||||||||
Premium income, net of reinsurance |
$ | 5,352,630 | $ | 5,208,527 | $ | 5,910,875 | ||||||
Investment income received, net of investment expenses paid |
1,136,338 | 1,111,282 | 1,080,450 | |||||||||
Other miscellaneous expense received (paid) |
160,008 | (77,825 | ) | (23,874 | ) | |||||||
Benefit and loss related payments, net of reinsurance |
(6,417,233 | ) | (5,393,966 | ) | (4,671,246 | ) | ||||||
Net transfers to separate accounts |
1,097,423 | 909,388 | 99,783 | |||||||||
Commissions, other expenses and taxes paid |
(644,838 | ) | (669,995 | ) | (687,938 | ) | ||||||
Dividends paid to policyholders |
(38,959 | ) | (46,583 | ) | (51,521 | ) | ||||||
Federal income taxes (paid) received, net |
(38,241 | ) | (15,138 | ) | 15,711 | |||||||
|
|
|
|
|
| |||||||
Net cash provided by operating activities |
607,128 | 1,025,690 | 1,672,240 | |||||||||
|
|
|
|
|
| |||||||
Investing activities: |
||||||||||||
Proceeds from investments sold, matured or repaid: |
||||||||||||
Bonds |
3,351,579 | 5,719,282 | 7,202,702 | |||||||||
Stocks |
3,704 | 14,597 | 1,539 | |||||||||
Mortgage loans |
357,545 | 399,982 | 365,790 | |||||||||
Real estate |
| | 1,457 | |||||||||
Other invested assets |
25,233 | 14,614 | 9,883 | |||||||||
Net gains on cash, cash equivalents and short-term investments |
| (1 | ) | 13 | ||||||||
Miscellaneous proceeds |
22,212 | | 40,414 | |||||||||
Cost of investments acquired: |
||||||||||||
Bonds |
(3,398,701 | ) | (6,023,940 | ) | (8,434,227 | ) | ||||||
Stocks |
(38,742 | ) | (99 | ) | (19 | ) | ||||||
Mortgage loans |
(697,245 | ) | (844,304 | ) | (688,991 | ) | ||||||
Real estate |
(4,319 | ) | (2,980 | ) | (2,006 | ) | ||||||
Other invested assets |
(36,870 | ) | (31,194 | ) | (3,985 | ) | ||||||
Miscellaneous applications |
(39,654 | ) | (67,286 | ) | (4,708 | ) | ||||||
Net change in contract loans and premium notes |
(1,355 | ) | (12,161 | ) | 6,809 | |||||||
|
|
|
|
|
| |||||||
Net cash used in investing activities |
(456,613 | ) | (833,490 | ) | (1,505,329 | ) | ||||||
|
|
|
|
|
| |||||||
Financing and miscellaneous activities: |
||||||||||||
Surplus notes |
51,410 | 12,000 | | |||||||||
Capital and paid in surplus |
3,325 | 84,944 | 20,306 | |||||||||
Deposit-type contract withdrawals, net of deposits |
(18,908 | ) | (21,673 | ) | (22,342 | ) | ||||||
Dividends to stockholder |
(152,295 | ) | (145,301 | ) | (125,691 | ) | ||||||
Funds (repaid) borrowed, net |
(1,027 | ) | 2,348 | 4,167 | ||||||||
Change in due to/from parent, subsidiaries and affiliates |
6,013 | 1,485 | 5,987 | |||||||||
Employee taxes paid for withheld shares |
(78 | ) | (818 | ) | (517 | ) | ||||||
Other |
(51,605 | ) | (70,011 | ) | (38,528 | ) | ||||||
|
|
|
|
|
| |||||||
Net cash used in financing and miscellaneous activities |
(163,165 | ) | (137,026 | ) | (156,618 | ) | ||||||
|
|
|
|
|
| |||||||
Net (decrease) increase in cash, cash equivalents and short-term investments and restricted cash |
(12,650 | ) | 55,174 | 10,293 | ||||||||
Cash, cash equivalents and short-term investments and restricted cash: |
||||||||||||
Beginning of year |
242,084 | 186,910 | 176,617 | |||||||||
|
|
|
|
|
| |||||||
End of year |
$ | 229,434 | $ | 242,084 | $ | 186,910 | ||||||
|
|
|
|
|
|
The cash, cash equivalents and short-term investments and restricted cash balance at December 31, 2018 includes $431 of restricted cash which is non-admitted and not included in the Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus.
See notes to statutory financial statements. | Continued |
9
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Statutory Statements of Cash Flows
Years Ended December 31, 2018, 2017 and 2016
(In Thousands)
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
|
|
|
|
|
| |||||||
Non-cash investing and financing transactions during the year: |
||||||||||||
Share-based compensation expense |
$ | 768 | $ | 1,563 | $ | (2,113 | ) | |||||
Assets received from limited partnership investment distributions |
| | (10 | ) | ||||||||
Fair value of assets acquired in settlement of bonds |
28,815 | 9,659 | |
See notes to statutory financial statements. | Concluded |
10
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
1. Organization and Significant Accounting Policies
Great-West Life & Annuity Insurance Company (the Company or GWL&A) is a direct wholly-owned subsidiary of GWL&A Financial Inc. (GWL&A Financial), a holding company. GWL&A Financial is a direct wholly-owned subsidiary of Great-West Lifeco U.S. LLC (Lifeco U.S.) and an indirect wholly-owned subsidiary of Great-West Lifeco Inc. (Lifeco), a Canadian holding company. The Company offers a wide range of life insurance, retirement and investment products to individuals, businesses and other private and public organizations throughout the United States. The Company is an insurance company domiciled in the State of Colorado, and is subject to regulation by the Colorado Division of Insurance (Division).
The Company is authorized to engage in the sale of life insurance, accident and health insurance and annuities. It is qualified to do business in all states in the United States, except New York, and in the District of Columbia, Puerto Rico, Guam and the U.S. Virgin Islands. The Company is also a licensed reinsurer in New York.
The statutory financial statements have been prepared from the separate records maintained by the Company and may not necessarily be indicative of the conditions that would have existed or the results of operations if the Company had been operated as an unaffiliated company.
Accounting policies and use of estimates
The Company prepares its statutory financial statements in conformity with accounting practices prescribed or permitted by the Division. The Division requires that insurance companies domiciled in the State of Colorado prepare their statutory financial statements in accordance with the National Association of Insurance Commissioners Accounting Practices and Procedures Manual (NAIC SAP), subject to any deviations prescribed or permitted by the State of Colorado Insurance Commissioner.
The only prescribed deviation that impacts the Company allows the Company to account for certain separate account products at book value instead of fair value. The Division has not permitted the Company to adopt any accounting practices that have an impact on the Companys statutory financial statements as compared to NAIC SAP or the Divisions prescribed accounting practices. There is no impact to either capital and surplus or net income as a result of the prescribed accounting practice.
Statutory accounting principles vary in some respects from accounting principles generally accepted in the United States of America (GAAP). The more significant of these differences are as follows:
| Bonds, including loan-backed and structured securities (collectively referred to as bonds), are carried at statutory adjusted carrying value in accordance with the National Association of Insurance Commissioners (NAIC) designation of the security. Carrying value is amortized cost, unless the bond is either (a) designated as a six, in which case it is the lower of amortized cost or fair value or (b) required to be carried at fair value due to the structured securities ratings methodology. Under GAAP, bonds are carried at amortized cost for securities classified as held-to-maturity and fair value for securities classified as available-for-sale and held-for-trading. |
| Short-term investments include all investments whose remaining maturities, at the time of acquisition, are three months to one year. Under GAAP, short-term investments include securities purchased with investment intent and with initial remaining maturities of one year or less. |
| As prescribed by the NAIC, the asset valuation reserve (AVR) is computed in accordance with a prescribed formula and represents a provision for possible non-interest related fluctuations in the value of bonds equity securities, mortgage loans, real estate and other invested assets. Changes to the AVR are charged or credited directly to unassigned surplus. This type of reserve is not necessary or required under GAAP. |
| As prescribed by the NAIC, the interest maintenance reserve (IMR) consists of net accumulated unamortized realized capital gains and losses, net of income taxes, on sales or interest related impairments of bonds and derivative investments attributable to changes in the general level of interest rates. Such gains or losses are initially deferred and then amortized into income over the remaining period to maturity, based on groupings of individual securities sold in five-year bands. An IMR asset is designated as a non-admitted asset and is recorded as a reduction to capital and surplus. Under GAAP, realized gains and losses are recognized in income in the period in which a security is sold. |
11
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
| As prescribed by the NAIC, an other-than-temporary impairment (OTTI) is recorded (a) if it is probable that the Company will be unable to collect all amounts due according to the contractual terms in effect at the date of acquisition, (b) if the Company has the intent to sell the investment or (c) for non-interest related declines in value and where the Company does not have the intent and ability at the reporting date, to hold the bond until its recovery. Under GAAP, if either (a) management has the intent to sell a bond investment or (b) it is more likely than not the Company will be required to sell a bond investment before its anticipated recovery, a charge is recorded in net realized investment losses equal to the difference between the fair value and cost or amortized cost basis of the security. If management does not intend to sell the security and it is not more likely than not the Company will be required to sell the bond investment before recovery of its amortized cost basis, but the present value of the cash flows expected to be collected (discounted at the effective interest rate implicit in the bond investment prior to impairment) is less than the amortized cost basis of the bond investment (referred to as the credit loss portion), an OTTI is considered to have occurred. |
Under GAAP, total OTTI is bifurcated into two components: the amount related to the credit loss, which is recognized in current period earnings through realized capital losses; and the amount attributed to other factors (referred to as the non-credit portion), which is recognized as a separate component in accumulated other comprehensive income (loss). As prescribed by the NAIC, non-interest related OTTI is only bifurcated on loan-backed and structured securities. Factors related to interest and other components do not have a financial statement impact and are disclosed in Unrealized losses and OTTI in the notes to the statutory financial statements.
| Derivatives that qualify for hedge accounting are carried at the same valuation method as the underlying hedged asset, while derivatives that do not qualify for hedge accounting are carried at fair value. Under GAAP, all derivatives, regardless of hedge accounting treatment, are recorded on the balance sheet in other assets or other liabilities at fair value. As prescribed by the NAIC, for those derivatives which qualify for hedge accounting, the change in the carrying value or cash flow of the derivative is recorded consistently with how the changes in the carrying value or cash flow of the hedged asset, liability, firm commitment or forecasted transaction are recorded. Under GAAP, if the derivative is designated as a cash flow hedge, the effective portions of the changes in the fair value of the derivative are recorded in accumulated other comprehensive income and are recognized in the income statements when the hedged item affects earnings. Changes in fair value resulting from foreign currency translations are recorded in either AOCI or net investment income, consistent with where they are recorded on the underlying hedged asset or liability. Changes in the fair value, including changes resulting from foreign currency translations, of derivatives not eligible for hedge accounting or where hedge accounting is not elected and the over effective portion of cash flow hedges are recognized in investment gains (losses) as a component of net income in the period of the change. Realized foreign currency transactional gains and losses on derivatives subject to hedge accounting are recorded in net investment income, whereas those on derivatives not subject to hedge accounting are recorded in investment gains (losses). As prescribed by the NAIC, upon termination of a derivative that qualifies for hedge accounting, the gain or loss is recognized in income in a manner that is consistent with the hedged item. Alternatively, if the item being hedged is subject to IMR, the gain or loss on the hedging derivative is realized and is subject to IMR upon termination. Under GAAP, gains or losses on terminated contracts that are effective hedges are recorded in earnings in net investment income or other comprehensive income. The gains or losses on terminated contracts where hedge accounting is not elected, or contracts that are not eligible for hedge accounting, are recorded in investment gains (losses). |
| The Company enters into dollar repurchase agreements with third party broker-dealers. The Company does not enter into these types of transactions for liquidity purposes, but rather for yield enhancement on its investment portfolio. The dollar repurchase trading strategy involves the sale of securities, with a simultaneous agreement to repurchase similar securities at a future date at an agreed-upon price. Assets to be repurchased are the same, or substantially the same, as the assets transferred, and are accounted for as secured borrowings. Under GAAP, these transactions are recorded as forward settling to be announced (TBA) securities that are accounted for as derivative instruments, but hedge accounting is not elected as the Company does not regularly accept delivery of such securities when issued. |
| Acquisition costs, such as commissions and other costs incurred in connection with acquiring new business, are charged to operations as incurred, rather than deferred and amortized over the lives of the related contracts as under GAAP. |
| Deferred income taxes are recorded using the asset and liability method in which deferred tax assets and liabilities are recorded for expected future tax consequences of events that have been recognized in either the Companys statutory financial statements or tax returns. Deferred income tax assets are subject to limitations prescribed by statutory accounting |
12
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
principles. The change in deferred income taxes is treated as a component of the change in unassigned funds, whereas under GAAP deferred taxes are included in the determination of net income. |
| Certain assets, including various receivables, furniture and equipment and prepaid assets, are designated as non-admitted assets and are recorded as a reduction to capital and surplus, whereas they are recorded as assets under GAAP. |
| The excess of the cost of acquiring an entity over the Companys share of the book value of the acquired entity is recorded as goodwill which is admissible subject to limitations and is amortized over the period in which the Company benefits economically, not to exceed ten years. Under GAAP, the excess of the cost of acquiring an entity over the acquisition-date fair value of identifiable assets acquired and liabilities assumed is allocated between goodwill, indefinite-lived intangible assets and definite-lived intangible assets. Goodwill and indefinite-lived intangible assets are not amortized and definite-lived intangible assets are amortized over their estimated useful lives under GAAP. |
| Aggregate reserves for life policies and contracts are based on statutory mortality and interest requirements and without consideration of withdrawals, which differ from reserves established under GAAP that are based on assumptions using Company experience for mortality, interest, and withdrawals. |
| As prescribed by the NAIC, ceded reserves are limited to the amount of direct reserves. Ceded aggregate reserves and policy and contract claim liabilities are netted against aggregate reserves for life policies and contracts for statutory accounting purposes. Under GAAP, these items are reported as reinsurance recoverable. |
| Surplus notes are reflected as a component of capital and surplus, whereas under GAAP they are reflected as a liability. |
| The policyholders share of net income on participating policies that has not been distributed to participating policyholders is included in capital and surplus in the statutory financial statements. For GAAP, these amounts are reported as a liability with a charge to net income. |
| Changes in separate account values from cash transactions are recorded as premium income and benefit expenses whereas they do not impact the statement of operations under GAAP and are presented only as increases or decreases to account balances. |
| Benefit payments and the related decrease in policy reserves are recorded as expenses for all contracts subjecting the Company to any mortality risk. Under GAAP, such benefit payments for life and annuity contracts without significant mortality risks are recorded as direct reductions to the policy reserve liability. |
| Premium receipts and the related increase in policy reserves are recorded as revenues and expenses, respectively, for all contracts subjecting the Company to any mortality risk. Under GAAP, such premium receipts for life and annuity contracts without significant mortality risks are recorded as direct credits to the policy reserve liability. |
| Comprehensive income and its components are not presented in the statutory financial statements. |
| The Statutory Statement of Cash Flows is presented based on a prescribed format for statutory reporting. For purposes of presenting statutory cash flows, cash includes short-term investments. Under GAAP, the statement of cash flows is typically presented based on the indirect method and cash excludes short-term investments. |
The preparation of financial statements in conformity with statutory accounting principles requires the Companys management to make a variety of estimates and assumptions. These estimates and assumptions affect, among other things, the reported amounts of admitted assets and liabilities, the disclosure of contingent liabilities and the reported amounts of revenues and expenses. Significant estimates are required to account for items and matters such as, but not limited to, the valuation of investments in the absence of quoted market values, impairment of investments, valuation of policy benefit liabilities and the valuation of deferred tax assets. Actual results could differ from those estimates.
13
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
Significant statutory accounting policies
Investments
Investments are reported as follows:
| In accordance with the NAIC SAP, the adjusted carrying value amounts of certain assets are gross of non-admitted assets. |
Bonds are carried at statutory adjusted carrying value in accordance with the NAIC designation of the security. Carrying value is amortized cost, unless the bond is either (a) designated as a six, in which case it is the lower of amortized cost or fair value or (b) required to be carried at fair value due to the structured securities ratings methodology. The Company recognizes the acquisition of its public bonds on a trade date basis and its private placement investments on a funding date basis. Bonds containing call provisions are amortized to the call or maturity value/date which produces the lowest asset value.
Premiums and discounts are recognized as a component of net investment income using the effective interest method. Realized gains and losses not subject to IMR, including those from foreign currency translations, are included in net realized capital gains (losses).
The recognition of income on certain investments (e.g. loan-backed securities, including mortgage-backed and asset-backed securities) is dependent upon market conditions, which may result in prepayments and changes in amounts to be earned. Prepayments on all mortgage-backed and asset-backed securities are monitored monthly, and amortization of the premium and/or the accretion of the discount associated with the purchase of such securities are adjusted by such prepayments. Prepayment assumptions are based on the average of recent historical prepayments and are obtained from broker/dealer survey values or internal estimates. These assumptions are consistent with the current interest rate and economic environment. Significant changes in estimated cash flows from the original purchase assumptions are accounted for using the retrospective method.
| Mortgage loans consist primarily of domestic commercial collateralized loans and are carried at their unpaid principal balances adjusted for any unamortized premiums or discounts, allowances for credit losses, and foreign currency translations. Interest income is accrued on the unpaid principal balance for all loans, except for loans on non-accrual status. Premiums and discounts are amortized to net investment income using the effective interest method. Prepayment penalty and origination fees are recognized in net investment income upon receipt. |
The Company actively manages its mortgage loan portfolio by completing ongoing comprehensive analysis of factors such as debt service coverage ratios, loan-to-value ratios, payment status, default or legal status, annual collateral property evaluations and general market conditions. On a quarterly basis, the Company reviews the above primary credit quality indicators in its internal risk assessment of loan impairment and credit loss. Managements risk assessment process is subjective and includes the categorization of all loans, based on the above mentioned credit quality indicators, into one of the following categories:
| Performing - generally indicates the loan has standard market risk and is within its original underwriting guidelines. |
| Non-performing - generally indicates there is a potential for loss due to the deterioration of financial/monetary default indicators or potential foreclosure. Due to the potential for loss, these loans are evaluated for impairment. |
The adequacy of the Companys allowance for credit loss is reviewed quarterly. The determination of the calculation and the adequacy of the mortgage allowance for credit loss and mortgage impairments involve judgments that incorporate qualitative and quantitative Company and industry mortgage performance data. Managements periodic evaluation and assessment of the adequacy of the mortgage allowance for credit loss and the need for mortgage impairments is based on known and inherent risks in the portfolio, adverse situations that may affect the borrowers ability to repay, the fair value of the underlying collateral, composition of the loan portfolio, current economic conditions, loss experience and other relevant factors. Loans included in the non-performing category and other loans with certain substandard credit quality indicators are individually reviewed to determine if a specific impairment is required. Risk is mitigated primarily through first position collateralization, guarantees, loan covenants and borrower reporting requirements. Since the Company does not originate or hold uncollateralized mortgages, loans are generally not deemed fully uncollectable. Generally, unrecoverable amounts are written off during the final stage of the foreclosure process.
14
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
Loan balances are considered past due when payment has not been received based on contractually agreed upon terms. The accrual of interest is discontinued when concerns exist regarding the realization of loan principal or interest. The Company resumes interest accrual on loans when a loan returns to current status or under new terms when loans are restructured or modified.
On a quarterly basis, any loans with terms that were modified during that period are reviewed to determine if the loan modifications constitute a troubled debt restructuring (TDR). In evaluating whether a loan modification constitutes a TDR, it must be determined that the modification is a significant concession and the debtor is experiencing financial difficulties.
| Real estate properties held for the production of income are valued at depreciated cost less encumbrances. Properties held for sale are carried at the lower of depreciated cost or fair value less encumbrances and estimated costs to sell the property. Real estate is depreciated on a straight-line basis over the estimated life of the building or term of the lease for tenant improvements. |
| Real estate properties occupied by the Company are carried at depreciated cost unless the carrying amount of the asset is deemed to be unrecoverable. The Company includes in both net investment income and other operating expenses an amount for rent relating to real estate properties occupied by the Company. Rent is derived from consideration of the repairs, expenses, taxes, interest and depreciation incurred. The reasonableness of the amount of rent recorded is verified by comparison to rent received from other like properties in the same area. |
| Limited partnership interests are included in other invested assets and are accounted for using either net asset value per share (NAV) as a practical expedient to fair value or the equity method of accounting with changes in these values recognized in unassigned surplus in the period of change. The Company uses NAV as a practical expedient on partnership interests in investment companies where it has a minor equity interest and no significant influence over the entitys operations. The Company uses the equity method when it has a partnership interest that is considered more than minor, although the Company has no significant influence over the entitys operations. |
| Common stocks, other than stocks of subsidiaries, are recorded at fair value based on the most recent closing price of the common stock as quoted on its exchange. Related party mutual funds, which are carried at fair value, are also included in common stocks. The net unrealized gain or loss on common stocks is reported as a component of surplus. |
| Contract loans are carried at their unpaid balance. Contract loans are fully collateralized by the cash surrender value of the associated insurance policy. |
| Short-term investments include all investments whose remaining maturities, at the time of acquisition, are three months to one year. Cash equivalent investments include all investments whose remaining maturities, at the time of acquisition, are three months or less. Both short-term and cash equivalent investments, excluding money market mutual funds, are stated at amortized cost, which approximates fair value. Cash equivalent investments also include highly liquid money market securities that are traded in an active market, and are carried at fair value. |
| The Company enters into reverse repurchase agreements with third party broker-dealers for the purpose of enhancing the total return on its investment portfolio. The repurchase trading strategy involves the purchase of securities, with a simultaneous agreement to resell similar securities at a future date at an agreed-upon price. Securities purchased under these agreements are accounted for as secured borrowings, and are reported at amortized cost in cash, cash equivalents and short-term investments. Under these tri-party repurchase agreements, the designated custodian takes possession of the underlying collateral on the Companys behalf, which is required to be cash or government securities. The fair value of the securities is monitored and additional collateral is obtained, where appropriate, to protect against credit exposure. The collateral cannot be sold or re-pledged and has not been recorded on the Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus. |
The Company enters into dollar repurchase agreements with third party broker-dealers. The Company does not enter into these types of transactions for liquidity purposes, but rather for yield enhancement on its investment portfolio. The dollar repurchase trading strategy involves the sale of securities, with a simultaneous agreement to repurchase similar securities at a future date at an agreed-upon price. Assets to be repurchased are the same, or substantially the same, as the assets transferred, and are accounted for as secured borrowings. Proceeds of the sale are reinvested in other securities and may
15
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
enhance the current yield and total return. The difference between the sales price and the future repurchase price is recorded as an adjustment to net investment income. During the period between the sale and repurchase, the Company will not be entitled to receive interest and principal payments on the securities sold. Losses may arise from changes in the value of the securities or if the counterparty enters bankruptcy proceedings or becomes insolvent. In such cases, the Companys right to repurchase the security may be restricted. Amounts owed to brokers under these arrangements are included as a liability in repurchase agreements.
The Company participates in a securities lending program in which the Company lends securities that are held as part of its general account investment portfolio to third parties. The Company does not enter into these types of transactions for liquidity purposes, but rather for yield enhancement on its investment portfolio. The borrower can return and the Company can request the loaned securities be returned at any time. The Company maintains ownership of the securities at all times and is entitled to receive from the borrower any payments for interest received on such securities during the loan term. Securities lending transactions are accounted for as secured borrowings. The securities on loan are included within bonds and short-term investments in the accompanying Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus. The securities lending agent indemnifies the Company against borrower risk, meaning that the lending agent agrees contractually to replace securities not returned due to a borrower default. The Company generally requires initial cash collateral in an amount greater than or equal to 102% of the fair value of domestic securities loaned and 105% of foreign securities loaned. Such collateral is used to replace the securities loaned in event of default by the borrower. Some cash collateral is reinvested in short-term repurchase agreements which are also collateralized by U.S. Government or U.S. Government Agency securities. Reinvested cash collateral is reported in securities lending reinvested collateral assets, with a corresponding liability in payable for securities lending. Collateral that cannot be sold or repledged is excluded from the Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus.
| The Companys OTTI accounting policy requires that a decline in the value of a bond below its cost or amortized cost basis be assessed to determine if the decline is other-than-temporary. An OTTI is recorded (a) if it is probable that the Company will be unable to collect all amounts due according to the contractual terms in effect at the date of acquisition, (b) if the Company has the intent to sell the investment or (c) for non-interest related declines in value and where the Company does not have the intent and ability at the reporting date, to hold the bond until its recovery. Management considers a wide range of factors, as described below, regarding the bond issuer and uses its best judgment in evaluating the cause of the decline in its estimated fair value and in assessing the prospects for near-term recovery. Inherent in managements evaluation of the bond are assumptions and estimates about the operations and ability to generate future cash flows. While all available information is taken into account, it is difficult to predict the ultimate recoverable amount from a distressed or impaired bond. |
Considerations used by the Company in the impairment evaluation process include, but are not limited to, the following:
| The extent to which estimated fair value is below cost; |
| Whether the decline in fair value is attributable to specific adverse conditions affecting a particular instrument, its issuer, an industry or geographic area; |
| The length of time for which the estimated fair value has been below cost; |
| Downgrade of a bond investment by a credit rating agency; |
| Deterioration of the financial condition of the issuer; |
| The payment structure of the bond investment and the likelihood of the issuer being able to make payments in the future; and |
| Whether dividends have been reduced or eliminated or scheduled interest payments have not been made. |
For loan-backed and structured securities, if management does not intend to sell the bond and has the intent and ability to hold the bond until recovery of its amortized cost basis, but the present value of the cash flows expected to be collected (discounted at the effective interest rate implicit in the bond prior to impairment) is less than the amortized cost basis of the bond (referred to as the non-interest loss portion), an OTTI is considered to have occurred. In this instance, total OTTI is bifurcated into two components: the amount related to the non-interest loss is recognized in current period earnings through realized capital gains (losses); and the amount attributed to other factors does not have any financial impact and is disclosed only in the notes to the statutory financial statements. The calculation of expected cash flows utilized during the impairment evaluation process are determined using judgment and the best information available to the Company including default rates, credit ratings, collateral characteristics and current levels of subordination.
16
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
For bonds not backed by other loans or assets, if management does not intend to sell the bond and has the intent and ability to hold, but does not expect to recover the entire cost basis, an OTTI is considered to have occurred. A charge is recorded in net realized capital gains (losses) equal to the difference between the fair value and cost or amortized cost basis of the bond. After the recognition of an OTTI, the bond is accounted for as if it had been purchased on the measurement date of the OTTI, with an amortized cost basis equal to the previous amortized cost basis less the OTTI recognized in net income. The difference between the new amortized cost basis and the expected future cash flows is accreted into net investment income. The Company continues to estimate the present value of cash flows expected to be collected over the life of the bond.
Fair value
Certain assets and liabilities are recorded at fair value on the Companys Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus. The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company categorizes its assets and liabilities measured at fair value into a three-level hierarchy, based on the priority of the inputs to the respective valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Companys assets and liabilities have been categorized based upon the following fair value hierarchy:
| Level 1 inputs which are utilized for separate account assets and liabilities, utilize observable, quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Financial assets utilizing Level 1 inputs include certain mutual funds. |
| Level 2 inputs utilize other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs, which are utilized for general and separate account assets and liabilities, include quoted prices for similar assets and liabilities in active markets and inputs, other than quoted prices, that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. The fair values for some Level 2 securities are obtained from pricing services. The inputs used by the pricing services are reviewed at least quarterly or when the pricing vendor issues updates to its pricing methodology. For bond and separate account assets and liabilities, inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, evaluated bids, offers and reference data including market research publications. Additional inputs utilized for assets and liabilities classified as Level 2 are: |
○ | Derivative instruments - trading activity, swap curves, credit spreads, currency volatility, net present value of cash flows and news sources. |
○ | Separate account assets and liabilities - various index data and news sources, amortized cost (which approximates fair value), trading activity, swap curves, credit spreads, recovery rates, restructuring, net present value of cash flows and quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. |
| Level 3 inputs are unobservable and include situations where there is little, if any, market activity for the asset or liability. In general, the prices of Level 3 securities are obtained from single broker quotes and internal pricing models. If the brokers inputs are largely unobservable, the valuation is classified as a Level 3. Broker quotes are validated through an internal analyst review process, which includes validation through known market conditions and other relevant data, as noted below. Internal models are usually cash flow based utilizing characteristics of the underlying collateral of the security such as default rate and other relevant data. Inputs utilized for securities classified as Level 3 are as follows: |
○ | Corporate debt securities - unadjusted single broker quotes which may be in an illiquid market or otherwise deemed unobservable. |
The fair value of certain investments in the separate accounts and limited partnerships are estimated using net asset value per share as a practical expedient, and are excluded from the fair value hierarchy levels in Note 5. These net asset values are based on the fair value of the underlying investments, less liabilities.
17
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Companys assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability
Overall, transfers between levels are attributable to a change in the observability of inputs. Assets are transferred to a lower level in the hierarchy when a significant input cannot be corroborated with market observable data. This may occur when market activity decreases and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets are transferred to a higher level in the hierarchy when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity including recent trades, a specific event, or one or more significant input(s) becoming observable. All transfers between levels are recognized at the beginning of the reporting period in which the transfer occurred. There were no transfers during the year.
The policies and procedures utilized to review, account for, and report on the value and level of the Companys securities were determined and implemented by the Finance division. The Investments division is responsible for the processes related to security purchases and sales and provides valuation and leveling input to the Finance division when necessary. Both divisions within the Company have worked in conjunction to establish thorough pricing, review, approval, accounting, and reporting policies and procedures around the securities valuation process.
In some instances, securities are priced using external broker quotes. In most cases, when broker quotes are used as pricing inputs, more than one broker quote is obtained. External broker quotes are reviewed internally by comparing the quotes to similar securities in the public market and/or to vendor pricing, if available. Additionally, external broker quotes are compared to market reported trade activity to ascertain whether the price is reasonable, reflective of the current market prices, and takes into account the characteristics of the Companys securities.
Derivative financial instruments
The Company enters into derivative transactions which include the use of interest rate swaps, interest rate swaptions, cross-currency swaps, foreign currency forwards, U.S. government treasury futures contracts, Eurodollar futures contracts, futures on equity indices and interest rate swap futures. The Company uses these derivative instruments to manage various risks, including interest rate and foreign currency exchange rate risk associated with its invested assets and liabilities. Derivative instruments are not used for speculative reasons. Certain of the Companys over-the-counter (OTC) derivatives are cleared and settled through a central clearing counterparty while others are bilateral contracts between the Company and a counterparty.
Derivatives are reported as other invested assets or other liabilities. Although some derivatives are executed under a master netting arrangement, the Company does not offset in the Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus the carrying value of those derivative instruments and the related cash collateral or net derivative receivables and payables executed with the same counterparty under the same master netting arrangement. Derivatives that qualify for hedge accounting treatment are valued using the valuation method (either amortized cost or fair value) consistent with the underlying hedged asset or liability. At inception of a derivative transaction, the hedge relationship and risk management objective is documented and the designation of the derivative is determined based on specific criteria of the transaction. Derivatives where hedge accounting is either not elected, or that are not eligible for hedge accounting, are stated at fair value with changes in fair value recognized in unassigned surplus in the period of change. Investment gains and losses generally result from the termination of derivative contracts prior to expiration and are generally recognized in net income and may be subject to IMR.
The Company uses derivative financial instruments for risk management purposes associated with certain invested assets and policy liabilities. Derivatives are used to (a) hedge the economic effects of interest rate and stock market movements on the Companys guaranteed lifetime withdrawal benefit (GLWB) liability, (b) hedge the economic effect of a large increase in interest rates on the Companys general account life insurance, group pension liabilities and certain separate account life insurance liabilities, (c) hedge the economic risks of other transactions such as future asset acquisitions or dispositions, the timing of liability pricing, currency risks on non-U.S. dollar denominated assets, and (d) convert floating rate assets or debt obligations to fixed rate assets or debt obligations for asset/liability management purposes.
18
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
The Company controls the credit risk of its derivative contracts through credit approvals, limits, monitoring procedures and in many cases, requiring collateral. The Companys exposure is limited to the portion of the fair value of derivative instruments that exceeds the value of the collateral held and not to the notional or contractual amounts of the derivatives.
Derivatives in a net asset position may have cash or securities pledged as collateral to the Company in accordance with the collateral support agreements with the counterparty. This collateral is held in a custodial account for the benefit of the Company. Unrestricted cash collateral is included in other assets and the obligation to return it is included in other liabilities. The cash collateral is reinvested in a government money market fund. Cash collateral pledged by the Company is included in other assets.
The Company may purchase a financial instrument that contains a derivative embedded in the financial instrument. Contracts that do not in their entirety meet the definition of a derivative instrument, may contain embedded derivative instruments implicit or explicit terms that affect some or all of the cash flows or the value of other exchanges required by the contract in a manner similar to a derivative instrument. An embedded derivative instrument shall not be separated from the host contract and accounted for separately as a derivative instrument.
Goodwill
Goodwill, resulting from acquisitions of subsidiaries that are reported in common stock and other invested assets, is amortized to unrealized capital gains/(losses) over the period in which the Company benefits economically, not to exceed ten years. Goodwill resulting from assumption reinsurance is reported in goodwill and is amortized to other insurance expenses over the period in which the Company benefits economically, not to exceed ten years. Admissible goodwill is limited in the aggregate to 10% of the Companys adjusted capital and surplus. The Company tests goodwill for impairment annually or more frequently if events or circumstances indicate that there may be justification for conducting an interim test. If the carrying value of goodwill exceeds its fair value, the excess is recognized as impairment and recorded as a realized loss in the period in which the impairment is identified. There were no impairments of goodwill recognized during the years ended December 31, 2018 and 2017.
Cash value of company owned life insurance
The Company is the owner and beneficiary of life insurance policies which are included in Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus at their cash surrender values. At December 31, 2018, the investments underlying variable life insurance policies utilize various fund structures, with underlying investment characteristics of 8% equity and 92% fixed income.
Net investment income
Interest income from bonds is recognized when earned. Interest income on contract loans is recognized in net investment income at the contract interest rate when earned. All investment income due and accrued with amounts that are deemed uncollectible or that are over 90 days past due, including mortgage loans in default (in process of foreclosure), is not included in investment income. Amounts over 90 days past due are non-admitted assets and are recorded as a reduction to unassigned surplus. Real estate due and accrued income is excluded from net investment income if its collection is uncertain.
Net realized capital gains (losses)
Realized capital gains and losses are reported as a component of net income and are determined on a specific identification basis. Interest-related gains and losses are primarily subject to IMR, while non-interest related gains and losses are primarily subject to AVR. Realized capital gains and losses also result from the termination of derivative contracts prior to expiration and may be subject to IMR.
Policy reserves
Life insurance and annuity policy reserves with life contingencies are computed on the basis of statutory mortality and interest requirements and without consideration for withdrawals. Annuity contract reserves without life contingencies are computed on the basis of statutory interest requirements.
19
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
Policy reserves for life insurance are valued in accordance with the provision of applicable statutory regulations. Life insurance reserves are determined principally using the Commissioners Reserve Valuation Method, using the statutory mortality and interest requirements, without consideration for withdrawals. Some policies contain a surrender value in excess of the reserve as legally computed. This excess is calculated and recorded on a policy-by-policy basis.
Premium stabilization reserves are calculated for certain policies to reflect the Companys estimate of experience refunds and interest accumulations on these policies. The reserves are invested by the Company. The income earned on these investments is accumulated in this reserve and is used to mitigate future premium rate increases for such policies.
Policy reserves ceded to other insurance companies are recorded as a reduction of the reserve liabilities. The cost of reinsurance related to long-duration contracts is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies.
Policy and contract claims include provisions for reported life and health claims in process of settlement, valued in accordance with the terms of the related policies and contracts, as well as provisions for claims incurred but not reported based primarily on prior experience of the Company. As such, amounts are estimates, and the ultimate liability may differ from the amount recorded. Any changes in estimates will be reflected in the results of operations when additional information becomes known.
The liabilities for health claim reserves are determined using historical run-out rates, expected loss ratios and statistical analysis. The Company provides for significant claim volatility in areas where experience has fluctuated. The liabilities represent estimates of the ultimate net cost of all reported and unreported claims which are unpaid at year-end. Those estimates are subject to considerable variability in claim severity and frequency. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes known; such adjustments are included in current operations.
Premium, fee income and expenses
Life insurance premiums are recognized when due. Annuity considerations are recognized as revenue when received. Accident and health premiums are earned ratably over the terms of the related insurance and reinsurance contracts or policies. Life and accident and health insurance premiums received in advance are recorded as a liability and recognized as income when the premiums become earned. Fees from assets under management, assets under administration, shareholder servicing, mortality and expense risk charges, administration and record-keeping services and investment advisory services are recognized when earned in fee income or other income. Expenses incurred in connection with acquiring new insurance business, including acquisition costs such as sales commissions, are charged to operations as incurred.
Income taxes
The Company is included in the consolidated federal income tax return of Lifeco U.S. The federal income tax expense reported in the Statutory Statements of Operations represent income taxes provided on income that is currently taxable, excluding tax on net realized capital gains and losses. A net deferred tax asset is included in the Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus which is recorded using the asset and liability method in which deferred tax assets and liabilities are recorded for expected future tax consequences of events that have been recognized in either the Companys statutory financial statements or tax returns. Deferred income tax assets are subject to limitations prescribed by statutory accounting principles. The change in deferred income taxes is treated as a component of the change in unassigned funds.
Changes in Accounting Principles
In 2009, the NAIC introduced Principle-Based Reserving (PBR) as a new method for calculating life insurance policy reserves. In cases where the PBR reserve is higher, it will replace the historic formulaic measure with one that more accurately reflects the risks of highly complex products. PBR is effective for 2017; however, companies are permitted to delay implementation until January 1, 2020. The Company will defer implementation for life and fixed annuity contracts until January 1, 2020 and is currently evaluating impact of adoption of PBR on its statutory financial statements.
In 2018, the Statutory Accounting Principles Working Group adopted, as final, a new SSAP No. 108, Derivatives Hedging Variable Annuity Guarantees, and a corresponding Issue Paper No. 159, Special Accounting for Limited Derivatives. The new
20
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
SSAP, which prescribes guidance for derivatives that hedge interest rate risk of variable annuity guarantees, was adopted with an effective date of January 1, 2020, with early adoption permitted as of January 1, 2019. The Company is currently evaluating impact of adoption of this elective guidance on its statutory financial statements.
In the normal course of business the Company enters into agreements with related parties whereby it provides and/or receives record-keeping services, investment advisory services, and tax-related services, as well as corporate support services which include general and administrative services, information technology services, sales and service support and marketing services. The following table presents revenue earned, expenses incurred and expense reimbursement from insurance and non-insurance related parties for services provided and/or received pursuant to the service agreements. These amounts, in accordance with the terms of the contracts, are based upon market price, estimated costs incurred or resources expended as determined by number of policies, certificates in-force, administered assets or other similar drivers.
Year Ended December 31, | Financial | |||||||||||||||||
Description | Related party | 2018 | 2017 | 2016 | statement line |
|||||||||||||
Provides corporate support service | Insurance affiliates: Great-West Life & Annuity Insurance Company of New York (GWL&A NY)(1), Great-West Life & Annuity Insurance Company of South Carolina (GWSC)(1),The Canada Life Assurance Company (CLAC)(2) and Great-West Life Assurance Company (Great-West Life)(2) |
$ | (15,522 | ) | $ | (14,610 | ) | $ | (14,895 | ) | |
Other insurance benefits and expenses |
| |||||
Non-insurance affiliates: FASCore, LLC (FASCore)(1), Advised Assets Group, LLC (AAG)(1), Great-West Capital Management, LLC (GWCM)(1), Great-West Trust Company, LLC (GWTC)(1), GWFS Equities, Inc. (GWFS)(1), Great-West Financial Retirement Plan Services (Great-West RPS)(1), Emjay, Inc.(1), MAM Holding Inc.(2) and Putnam(3) |
(142,424 | ) | (113,504 | ) | (102,698 | ) | ||||||||||||
Total | (157,946 | ) | (128,114 | ) | (117,593 | ) | ||||||||||||
Receives corporate support services | Insurance affiliates: CLAC( 1) and Great-West Life(1) |
1,711 | 1,966 | 1,999 | |
Other insurance |
| |||||||||||
Non-insurance affiliates: Putnam(2) and Great West Global(2) |
3,381 | 3,128 | 5,922 | |
benefits and expenses |
| ||||||||||||
Total | 5,092 | 5,094 | 7,921 | |||||||||||||||
Provides marketing, distribution and administrative services to certain underlying funds and/or mutual funds | Non-insurance affiliate: GWFS(1) |
198,976 | 202,880 | 203,288 | |
Other income |
| |||||||||||
Provides record-keeping services | Non-insurance affiliates: GWTC(1) |
38,200 | 30,517 | 21,110 | |
Other income |
| |||||||||||
Non-insurance related party: Great-West Funds(4) |
65,281 | 65,743 | 57,867 | |||||||||||||||
Total | 103,481 | 96,260 | 78,977 | |||||||||||||||
Receives record-keeping services | Insurance affiliate: GWL&A NY(1) |
(2,551 | ) | (2,423 | ) | (2,096 | ) | |
Other income |
| ||||||||
Non-insurance affiliates: FASCore(1)and GWTC(1) |
(342,803 | ) | (316,923 | ) | (291,945 | ) | ||||||||||||
Total | (345,354 | ) | (319,346 | ) | (294,041 | ) | ||||||||||||
Receives custodial services | Non-insurance affiliate: GWTC(1) |
(12,410 | ) | (11,854 | ) | (11,125 | ) | |
Other income |
| ||||||||
Receives reimbursement from tax sharing indemnification related to state and local tax liabilities | Non-insurance affiliate: Putnam(3) |
9,140 | 9,611 | 12,261 | |
Other income |
|
(1) A wholly-owned subsidiary of GWL&A
(2) An indirect wholly-owned subsidiary of Lifeco
(3) A wholly-owned subsidiary of Lifeco U.S.
21
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
(4) An open-end management investment company, a related party of GWL&A
The Companys separate accounts invest in shares of Great-West Funds, Inc. and Putnam Funds, which are affiliates of the Company and shares of other non-affiliated mutual funds and government and corporate bonds. The Companys separate accounts include mutual funds or other investment options that purchase guaranteed interest annuity contracts issued by the Company. During the years ended December 31, 2018, 2017 and 2016, these purchases totaled $169,857, $292,774 and $183,365 respectively. As the general account investment contracts are also included in the separate account balances in the accompanying statutory statements of admitted assets, liabilities, capital and surplus, the Company has included the separate account assets and liabilities of $284,278 and $335,311 at December 31, 2018 and 2017, respectively, which is also included in the assets and liabilities of the general account at those dates.
The following table summarizes amounts due from parent and affiliates:
December 31, | ||||||||||||
Related party | Indebtedness | Due date | 2018 | 2017 | ||||||||
GWFS(1) |
On account | On demand | $ | 34,394 | $ | 37,770 | ||||||
CLAC(2) |
On account | On demand | | 20,063 | ||||||||
GWTC(1) |
On account | On demand | 5,489 | 4,008 | ||||||||
GWCM(1) |
On account | On demand | 1,367 | 2,179 | ||||||||
AAG(1) |
On account | On demand | 3,088 | 994 | ||||||||
GWSC(1) |
On account | On demand | 1,418 | 878 | ||||||||
Putnam(3) |
On account | On demand | 4,027 | | ||||||||
Great-West RPS(1) |
On account | On demand | 324 | 595 | ||||||||
Other related party receivables |
On account | On demand | | 868 | ||||||||
|
|
|
|
|
| |||||||
Total |
$ | 50,107 | $ | 67,355 | ||||||||
|
|
|
|
|
| |||||||
(1) A wholly-owned subsidiary of GWL&A (2) An indirect wholly-owned subsidiary of Lifeco (3) A wholly-owned subsidiary of Lifeco U.S.
The following table summarizes amounts due to parent and affiliates: |
||||||||||||
December 31, | ||||||||||||
Related party | Indebtedness | Due date | 2018 | 2017 | ||||||||
FASCore(1) |
On account | On demand | $ | 35,385 | $ | 46,371 | ||||||
Putnam(3) |
On account | On demand | 770 | 3,432 | ||||||||
CLAC(2) |
On account | On demand | 4,032 | | ||||||||
Other related party payables |
On account | On demand | 1,548 | 2,278 | ||||||||
|
|
|
|
|
| |||||||
Total |
$ | 41,735 | $ | 52,081 | ||||||||
|
|
|
|
|
|
(1) A wholly-owned subsidiary of GWL&A
(2) An indirect wholly-owned subsidiary of Lifeco
(3) A wholly-owned subsidiary of Lifeco U.S.
Included in current federal income taxes recoverable at December 31, 2018 and 2017 is $72,188 and $17,456, respectively, of income tax receivable from Lifeco U.S. related to the consolidated income tax return filed by Lifeco U.S.
The Company (paid) received cash payments of $(42,577) and $171 from its subsidiary, GWSC, in 2018 and 2017, respectively, for the utilization of GWSCs operating loss carryforward amounts under the terms of its tax sharing agreement. Additionally, during the years ended December 31, 2018, 2017 and 2016, the Company received interest income of $2,527, $3,044 and $2,733, respectively, from GWSC relating to the tax sharing agreement.
During the year ended December 31, 2018, the Company received dividends and return of capital of $106,000 and $680, respectively, from its subsidiaries, the largest being $42,000 from AAG. During the year ended December 31, 2017, the Company received dividends and return of capital of $82,500 and $1,150, respectively, from its subsidiaries, the largest being $35,000 from FASCore.
22
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
During the years ended December 31, 2018 and 2017, the Company paid cash dividends to GWL&A Financial in the amounts of $152,295 and $145,301, respectively.
The Company and GWL&A NY have an agreement whereby the Company has committed to provide GWL&A NY financial support related to the maintenance of adequate regulatory surplus and liquidity.
Investments in bonds consist of the following:
December 31, 2018 | ||||||||||||||||
Book/adjusted carrying value |
Gross unrealized gains |
Gross unrealized losses |
Fair value | |||||||||||||
U.S. government |
$ | 6,306 | $ | 926 | $ | 22 | $ | 7,210 | ||||||||
U.S. states, territories and possessions |
1,025,470 | 91,508 | 672 | 1,116,306 | ||||||||||||
Political subdivisions of states and territories |
842,211 | 63,945 | 2,034 | 904,122 | ||||||||||||
Special revenue and special assessments |
687 | 4 | | 691 | ||||||||||||
Industrial and miscellaneous |
12,849,382 | 237,900 | 321,254 | 12,766,028 | ||||||||||||
Parent, subsidiaries and affiliates |
15,102 | | | 15,102 | ||||||||||||
Hybrid securities |
234,411 | 77 | 31,209 | 203,279 | ||||||||||||
Loan-backed and structured securities |
5,680,549 | 91,517 | 96,761 | 5,675,305 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total bonds |
$ | 20,654,118 | $ | 485,877 | $ | 451,952 | $ | 20,688,043 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
December 31, 2017 | ||||||||||||||||
Book/adjusted carrying value |
Gross unrealized gains |
Gross unrealized losses |
Fair value | |||||||||||||
U.S. government |
$ | 11,547 | $ | 1,603 | $ | 12 | $ | 13,138 | ||||||||
U.S. states, territories and possessions |
1,054,936 | 130,027 | 123 | 1,184,840 | ||||||||||||
Political subdivisions of states and territories |
949,988 | 89,898 | 1,486 | 1,038,400 | ||||||||||||
Special revenue and special assessments |
1,993 | 62 | | 2,055 | ||||||||||||
Industrial and miscellaneous |
12,536,852 | 537,262 | 60,617 | 13,013,497 | ||||||||||||
Parent, subsidiaries and affiliates |
19,912 | | | 19,912 | ||||||||||||
Hybrid securities |
236,060 | 6,354 | 8,213 | 234,201 | ||||||||||||
Loan-backed and structured securities |
5,133,574 | 168,214 | 30,288 | 5,271,500 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total bonds |
$ | 19,944,862 | $ | 933,420 | $ | 100,739 | $ | 20,777,543 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The book/adjusted carrying value and estimated fair value of bonds and assets receiving bond treatment, based on estimated cash flows, are shown in the table below. Actual maturities will likely differ from these projections because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
December 31, 2018 | ||||||||
Book/adjusted carrying value |
Fair value | |||||||
Due in one year or less |
$ | 767,254 | $ | 777,131 | ||||
Due after one year through five years |
3,834,629 | 3,863,897 | ||||||
Due after five years through ten years |
6,883,504 | 6,803,249 | ||||||
Due after ten years |
3,527,628 | 3,607,680 | ||||||
Loan-backed and structured securities |
5,670,623 | 5,665,599 | ||||||
|
|
|
|
|
| |||
Total bonds |
$ | 20,683,638 | $ | 20,717,556 | ||||
|
|
|
|
|
|
Loan-backed and structured securities include those issued by U.S. government and U.S. agencies.
23
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
The following table summarizes information regarding the sales of securities:
Years ended December 31, | ||||||||||||
2018 | 2017 2016 | |||||||||||
Proceeds from sales |
$ | 12,788,008 | $ | 17,492,392 | $ | 23,931,241 | ||||||
Gross realized gains from sales |
32,672 | 34,506 | 80,975 | |||||||||
Gross realized losses from sales |
30,960 | 56,354 | 34,646 |
Unrealized losses on bonds
The following tables summarize gross unrealized investment losses including the non-credit-related portion of OTTI losses, by class of investment:
December 31, 2018 | ||||||||||||||||||||||||
Less than twelve months | Twelve months or longer | Total | ||||||||||||||||||||||
Bonds: | Fair value | Unrealized loss and OTTI |
Fair value | Unrealized loss and OTTI |
Fair value | Unrealized loss and OTTI | ||||||||||||||||||
U.S. government | $ | 116 | $ | 4 | $ | 818 | $ | 19 | $ | 934 | $ | 23 | ||||||||||||
U.S. states, territories and possessions | 42,429 | 360 | 11,365 | 312 | 53,794 | 672 | ||||||||||||||||||
Political subdivisions of states and territories | 103,774 | 1,115 | 28,604 | 919 | 132,378 | 2,034 | ||||||||||||||||||
Industrial and miscellaneous | 6,334,837 | 235,993 | 2,763,614 | 201,312 | 9,098,451 | 437,305 | ||||||||||||||||||
Hybrid securities | 104,167 | 13,710 | 88,517 | 17,498 | 192,684 | 31,208 | ||||||||||||||||||
Loan-backed and structured securities | 2,462,938 | 46,794 | 1,568,844 | 53,417 | 4,031,782 | 100,211 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total bonds |
$ | 9,048,261 | $ | 297,976 | $ | 4,461,762 | $ | 273,477 | $ | 13,510,023 | $ | 571,453 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total number of securities in an unrealized loss position | 815 | 475 | 1,290 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||||||||||
December 31, 2017 | ||||||||||||||||||||||||
Less than twelve months | Twelve months or longer | Total | ||||||||||||||||||||||
Bonds: | Fair value | Unrealized loss and OTTI |
Fair value | Unrealized loss and OTTI |
Fair value | Unrealized loss and OTTI | ||||||||||||||||||
U.S. government | $ | 860 | $ | 12 | $ | | $ | | $ | 860 | $ | 12 | ||||||||||||
U.S. states, territories and possessions | 11,794 | 125 | | | 11,794 | 125 | ||||||||||||||||||
Political subdivisions of states and territories | 13,114 | 56 | 43,949 | 1,430 | 57,063 | 1,486 | ||||||||||||||||||
Industrial and miscellaneous | 1,911,630 | 17,016 | 1,708,202 | 74,659 | 3,619,832 | 91,675 | ||||||||||||||||||
Hybrid securities | | | 106,351 | 8,214 | 106,351 | 8,214 | ||||||||||||||||||
Loan-backed and structured securities | 1,530,747 | 12,379 | 694,016 | 19,586 | 2,224,763 | 31,965 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total bonds |
$ | 3,468,145 | $ | 29,588 | $ | 2,552,518 | $ | 103,889 | $ | 6,020,663 | $ | 133,477 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total number of securities in an unrealized loss position | 328 | 257 | 585 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Bonds - Total unrealized losses and OTTI increased by $437,983, or 328%, from December 31, 2017 to December 31, 2018. The increase in unrealized losses was across all asset classes and reflects higher interest rates at December 31, 2018 compared to December 31, 2017, resulting in lower valuations of these bonds.
Total unrealized losses greater than twelve months increased by $169,588 from December 31, 2017 to December 31, 2018. Industrial and miscellaneous account for 74%, or $201,312, of the unrealized losses and OTTI greater than twelve months at December 31, 2018. The majority of these bonds continue to be designated as investment grade. Management does not have the intent to sell these assets; therefore, an OTTI was not recognized in net income.
24
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
Loan-backed and structured securities account for 20%, or $53,417, of the unrealized losses and OTTI greater than twelve months at December 31, 2018. Of the $53,417 of unrealized losses and OTTI over twelve months on loan-backed and structured securities, 99% or $52,708 are on securities which continue to be designated as investment grade. The present value of cash flows expected to be collected is not less than amortized cost and management does not have the intent to sell these assets; therefore, an OTTI was not recognized in net income.
Loan-backed and structured securities
The Company had a concentration in loan-backed and structured securities of 19% and 18% of total invested assets at December 31, 2018 and 2017, respectively.
Derivative financial instruments
Derivative transactions are generally entered into pursuant to International Swaps and Derivatives Association (ISDA) Master Agreements with approved counterparties that provide for a single net payment to be made by one party to the other on a daily basis, periodic payment dates, or at the due date, expiration, or termination of the agreement.
The ISDA Master Agreements contain provisions that would allow the counterparties to require immediate settlement of all derivative instruments in a net liability position if the Company were to default on any debt obligations over a certain threshold. The aggregate fair value, inclusive of accrued income and expense, of derivative instruments with credit-risk-related contingent features that were in a net liability position was $36,177 and $106,038 as of December 31, 2018 and 2017, respectively. The Company had pledged collateral related to these derivatives of $0 and $42,750 as of December 31, 2018 and 2017, respectively, in the normal course of business. If the credit-risk-related contingent features were triggered on December 31, 2018 the fair value of assets that could be required to settle the derivatives in a net liability position was $36,177.
At December 31, 2018 and 2017, the Company had pledged $30,220 and $42,750, respectively, of unrestricted cash collateral to counterparties in the normal course of business, while other counterparties had pledged $71,280 and $14,332 of unrestricted cash collateral to the Company to satisfy collateral netting arrangements, respectively.
At December 31, 2018 and 2017, the Company had pledged U.S. Treasury bills in the amount of $8,197 and $3,215, respectively, with a broker as collateral for futures contracts.
Types of derivative instruments and derivative strategies
Interest rate contracts
Cash flow hedges
Interest rate swap agreements are used to convert the interest rate on certain debt securities and debt obligations from a floating rate to a fixed rate.
Not designated as hedging instruments
The Company enters into certain transactions in which derivatives are hedging an economic risk but hedge accounting is either not elected or the transactions are not eligible for hedge accounting. These derivative instruments include: exchange-traded interest rate swap futures, OTC interest rate swaptions, OTC interest rate swaps, exchange-traded Eurodollar interest rate futures and treasury interest rate futures. Certain of the Companys OTC derivatives are cleared and settled through a central clearing counterparty while others are bilateral contracts between the Company and a counterparty.
The derivative instruments mentioned above are economic hedges and used to manage risk. These transactions are used to offset changes in liabilities including those in variable annuity products, hedge the economic effect of a large increase in interest rates, manage the potential variability in future interest payments due to a change in credited interest rates and the related change in cash flows due to increased surrenders, and manage interest rate risks of forecasted acquisitions of bonds and forecasted liability pricing.
25
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
Foreign currency contracts
Cross-currency swaps and foreign currency forwards are used to manage the foreign currency exchange rate risk associated with investments denominated in other than U.S. dollars. The Company uses cross-currency swaps to convert interest and principal payments on foreign denominated debt instruments into U.S. dollars. Cross-currency swaps may be designated as cash flow hedges; however, some are not eligible for hedge accounting. The Company uses foreign currency forwards to reduce the risk of foreign currency exchange rate changes on proceeds received on sales of foreign denominated debt instruments; however, hedge accounting is not elected.
Equity contracts
The Company uses futures on equity indices to offset changes in GLWB liabilities; however, they are not eligible for hedge accounting.
The following tables summarize derivative financial instruments:
December 31, 2018 | ||||||||||||
Notional amount |
Net book/adjusted carrying value (1) |
Fair value (2) | ||||||||||
Hedge designation/derivative type: | ||||||||||||
Derivatives designated as hedges: |
||||||||||||
Cash flow hedges: |
||||||||||||
Interest rate swaps |
$ | 22,300 | $ | | $ | 6,248 | ||||||
Cross-currency swaps |
886,018 | 55,808 | 39,109 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Total derivatives designated as hedges | 908,318 | 55,808 | 45,357 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Derivatives not designated as hedges: | ||||||||||||
Interest rate swaps |
636,500 | (13,645 | ) | (12,775 | ) | |||||||
Futures on equity indices |
137,829 | 5,920 | (786 | ) | ||||||||
Interest rate futures |
53,000 | 2,276 | 37 | |||||||||
Interest rate swaptions |
194,330 | 173 | 173 | |||||||||
Cross-currency swaps |
573,703 | 26,208 | 24,945 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Total derivatives not designated as hedges | 1,595,362 | 20,932 | 11,594 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Total cash flow hedges, and derivatives not designated as hedges | $ | 2,503,680 | $ | 76,740 | $ | 56,951 | ||||||
|
|
|
|
|
|
|
|
|
(1) The book/adjusted carrying value excludes accrued income and expense. The book/adjusted carrying value of all derivatives in an asset position is reported within other invested assets and the book/adjusted carrying value of all derivatives in a liability position is reported within other liabilities in the Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus.
(2) The fair value includes accrued income and expense.
26
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
December 31, 2017 | ||||||||||||
Notional amount |
Net book/adjusted carrying value |
Fair value | ||||||||||
Hedge designation/derivative type: | ||||||||||||
Derivatives designated as hedges: |
||||||||||||
Cash flow hedges: |
||||||||||||
Interest rate swaps |
$ | 388,800 | $ | | $ | 28,725 | ||||||
Cross-currency swaps |
800,060 | 4,710 | (31,358) | |||||||||
|
|
|
|
|
|
|
|
| ||||
Total cash flow hedges |
1,188,860 | 4,710 | (2,633) | |||||||||
|
|
|
|
|
|
|
|
| ||||
Derivatives not designated as hedges: | ||||||||||||
Interest rate swaps |
519,100 | (3,911) | (3,911) | |||||||||
Futures on equity indices |
22,074 | 857 | 77 | |||||||||
Interest rate futures |
60,700 | 2,358 | (5) | |||||||||
Interest rate swaptions |
164,522 | 75 | 75 | |||||||||
Cross-currency swaps |
612,733 | (21,279) | (21,279) | |||||||||
|
|
|
|
|
|
|
|
| ||||
Total derivatives not designated as hedges | 1,379,129 | (21,900) | (25,043) | |||||||||
|
|
|
|
|
|
|
|
| ||||
Total cash flow hedges and derivatives not designated as hedges | $ | 2,567,989 | $ | (17,190) | $ | (27,676) | ||||||
|
|
|
|
|
|
|
|
|
The following table presents net unrealized gains/(losses) on derivatives not designated as hedging instruments as reported in the Statutory Statements of Changes in Capital and Surplus:
Net unrealized gain (loss) on derivatives recognized in surplus |
||||||||||||
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Interest rate swaps |
$ | (8,039) | $ | 130 | $ | (4,901) | ||||||
Interest rate swaptions |
198 | (54) | 196 | |||||||||
Futures on equity indices |
297 | (363) | 531 | |||||||||
Interest rate futures |
159 | 48 | (37) | |||||||||
Cross-currency swaps |
32,525 | (39,021) | 44,541 | |||||||||
|
|
|
|
|
|
| ||||||
Total | $ | 25,140 | $ | (39,260) | $ | 40,330 | ||||||
|
|
|
|
|
|
|
Securities Lending
Securities classified as industrial and miscellaneous with a cost or amortized cost of $47,218 and estimated fair values of $43,425 were on loan under the program at December 31, 2018. There were no securities on loan at December 31, 2017. The Company received cash of $45,102 as collateral at December 31, 2018.
The Companys securities lending agreements are open agreements meaning the borrower can return and the Company can recall the loaned securities at any time.
The cash collateral received of $45,102 was reinvested into short-term repurchase agreements which are collateralized by U.S. government or U.S. government agency securities and mature in under 30 days.
27
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
Dollar Repurchase Agreements
Dollar repurchase agreements with a book/adjusted carrying value of $688,765 at December 31, 2018, was included with bonds in the Statutory Statement of Admitted Assets, Liabilities, Capital and Surplus. At December 31, 2018, the obligation of $664,650 to repurchase the agreements at a later date was recorded in repurchase agreements liabilities. The following table summarizes the securities underlying the dollar repurchase agreements at December 31, 2018:
December 31, 2018 | ||||||||||||
Issuer |
Book/adjusted carrying value |
Fair value | Maturity | |||||||||
FHLMC |
$ | 66,283 | $ | 64,754 | 1/1/2034 | |||||||
FHLMC |
482,628 | 471,162 | 1/1/2049 | |||||||||
FNMA |
35,506 | 34,925 | 1/1/2034 | |||||||||
FNMA |
104,348 | 101,971 | 1/1/2049 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 688,765 | $ | 672,812 | ||||||||
|
|
|
|
|
|
There were no dollar repurchase agreements open at December 31, 2017.
The cash collateral of $664,791 related to the dollar repurchase agreement program at December 31, 2018 was primarily reinvested into investment grade corporate securities with a book/adjusted carrying value of $664,791 and fair value of $657,553, with maturities greater than 3 years.
Reverse Repurchase Agreements
The Company had short-term reverse repurchase agreements with book/adjusted carrying values of $11,200 and $23,200 at December 31, 2018 and December 31, 2017, respectively, with maturities of 2 days to 1 week. The fair value of securities acquired under the tri-party agreement and held on the Companys behalf was $11,424 and $23,664 at December 31, 2018 and December 31, 2017, respectively.
28
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
Restricted Assets
The following tables summarize collateral pledged by the Company and investments on deposit or in trust accounts controlled by various state insurance departments in accordance with statutory requirements:
December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||
Gross (Admitted & Non-admitted) Restricted | Percentage | |||||||||||||||||||||||||||||||||||||||||||
Total General Account (G/A) |
G/A Supporting S/A Activity |
Total Separate Account (S/A) Restricted Assets |
S/A Assets Supporting G/A Activity |
Total | Total From Prior Year |
Increase/ (Decrease) |
Total Non- admitted Restricted |
Total Admitted Restricted |
Gross (Admitted & Non- admitted) Restricted to Total Assets |
Admitted Restricted to Total Admitted Assets | ||||||||||||||||||||||||||||||||||
Restricted Asset Category: | ||||||||||||||||||||||||||||||||||||||||||||
Collateral held under security lending arrangements | $ | 45,102 | $ | | $ | | $ | | $ | 45,102 | $ | | $ | 45,102 | $ | | $ | 45,102 | 0.08% | 0.08% | ||||||||||||||||||||||||
Subject to repurchase agreements | | | | | | | | | | 0.00% | 0.00% | |||||||||||||||||||||||||||||||||
Subject to reverse repurchase agreements | 11,200 | | | | 11,200 | 23,200 | (12,000 | ) | | 11,200 | 0.02% | 0.02% | ||||||||||||||||||||||||||||||||
Subject to dollar repurchase agreements |
688,765 | | | | 688,765 | | 688,765 | | 688,765 | 1.23% | 1.23% | |||||||||||||||||||||||||||||||||
On deposit with states | 4,443 | | | | 4,443 | 4,351 | 92 | | 4,443 | 0.01% | 0.01% | |||||||||||||||||||||||||||||||||
On deposit with other regulatory bodies | 603 | | | | 603 | 627 | (24 | ) | | 603 | 0.00% | 0.00% | ||||||||||||||||||||||||||||||||
Pledged as collateral not captured in other categories: | ||||||||||||||||||||||||||||||||||||||||||||
Futures margin deposits |
8,197 | | | | 8,197 | 3,388 | 4,809 | | 8,197 | 0.02% | 0.02% | |||||||||||||||||||||||||||||||||
Other collateral |
5,320 | | | | 5,320 | | 5,320 | | 5,320 | 0.01% | 0.01% | |||||||||||||||||||||||||||||||||
Derivative cash collateral |
30,220 | | | | 30,220 | 42,751 | (12,531 | ) | | 30,220 | 0.05% | 0.05% | ||||||||||||||||||||||||||||||||
Other restricted assets | 1,259 | | | | 1,259 | 228 | 1,031 | | 1,259 | 0.00% | 0.00% | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Restricted Assets | $ | 795,109 | $ | | $ | | $ | | $ | 795,109 | $ | 74,545 | $ | 720,564 | $ | | $ | 795,109 | 1.42% | 1.43% | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||
Gross (Admitted & Non-admitted) Restricted | Percentage | |||||||||||||||||||||||||||||||||||||||||||
Total General Account (G/A) |
G/A Supporting S/A Activity |
Total Separate Account (S/A) Restricted Assets |
S/A Assets Supporting G/A Activity |
Total | Total From Prior Year |
Increase/ (Decrease) |
Total Non- admitted Restricted |
Total Admitted Restricted |
Gross (Admitted & Non- admitted) Restricted to Total Assets |
Admitted Restricted to Total Admitted Assets | ||||||||||||||||||||||||||||||||||
Restricted Asset Category: | ||||||||||||||||||||||||||||||||||||||||||||
Subject to reverse repurchase agreements | $ | 23,200 | $ | | $ | | $ | | $ | 23,200 | $ | | $ | 23,200 | $ | | $ | 23,200 | 0.000% | 0.000% | ||||||||||||||||||||||||
On deposit with states | 4,351 | | | | 4,351 | 4,350 | 1 | | 4,351 | 0.000% | 0.000% | |||||||||||||||||||||||||||||||||
On deposit with other regulatory bodies | 627 | | | | 627 | 513 | 114 | | 627 | 0.000% | 0.000% | |||||||||||||||||||||||||||||||||
Other restricted assets | 228 | | | | 228 | 581 | (353 | ) | | 228 | 0.000% | 0.000% | ||||||||||||||||||||||||||||||||
Pledged as collateral not captured in other categories: | ||||||||||||||||||||||||||||||||||||||||||||
Futures margin deposits |
3,215 | | 173 | | 3,388 | 3,570 | (182 | ) | | 3,388 | 0.000% | 0.000% | ||||||||||||||||||||||||||||||||
Derivative cash collateral |
42,750 | | 1 | | 42,751 | | 42,751 | | 42,751 | 0.000% | 0.000% | |||||||||||||||||||||||||||||||||
|
|
|
|
|
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|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Restricted Assets | $ | 74,371 | $ | | $ | 174 | $ | | $ | 74,545 | $ | 9,014 | $ | 65,531 | $ | | $ | 74,545 | 0.000% | 0.000% | ||||||||||||||||||||||||
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|
29
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
Net Investment Income
The following table summarizes net investment income:
Years Ended December 31, | ||||||||||||
2018 | 2017 2016 | |||||||||||
Bonds | $ | 822,645 | $ | 817,282 | $ | 787,272 | ||||||
Common stock | 221 | 425 | 633 | |||||||||
Mortgage loans | 169,415 | 164,055 | 151,505 | |||||||||
Real estate | 26,557 | 25,979 | 25,401 | |||||||||
Contract loans | 199,507 | 198,672 | 198,846 | |||||||||
Cash, cash equivalents and short-term investments | 4,749 | 6,556 | 7,030 | |||||||||
Derivative instruments | 16,308 | 16,216 | 10,029 | |||||||||
Other invested assets | 125,821 | 100,134 | 116,701 | |||||||||
Miscellaneous | 1,896 | 4,552 | 1,761 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Gross investment income |
1,367,119 | 1,333,871 | 1,299,178 | |||||||||
Expenses | (59,732 | ) | (66,908 | ) | (63,337 | ) | ||||||
|
|
|
|
|
|
|
|
| ||||
Net investment income | $ | 1,307,387 | $ | 1,266,963 | $ | 1,235,841 | ||||||
|
|
|
|
|
|
|
|
|
The amount of interest incurred and charged to investment expense during the years ended December 31, 2018, 2017 and 2016 was $22,070, $29,278 and $31,042, respectively.
The following table summarizes net realized capital gains (losses) on investments net of federal income tax and interest maintenance reserve transfer:
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Net realized capital gains (losses), before federal income tax | $ | 4,905 | $ | (19,270) | $ | 46,048 | ||||||
Less: Federal income tax |
1,030 | (6,745) | 16,117 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Net realized capital gains (losses), before IMR transfer | 3,875 | (12,525) | 29,931 | |||||||||
Net realized capital gains (losses) transferred to IMR, net of federal income tax of ($1,781), ($7,032) and $16,707, respectively |
(6,701) | (13,060) | 31,027 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Net realized capital gains (losses), net of federal income tax expense (benefit) of $2,811, $287 and ($590), respectively, and IMR transfer | $ | 10,576 | $ | 535 | $ | (1,096) | ||||||
|
|
|
|
|
|
|
|
|
Concentrations
The Company had the following bond concentrations based on total invested assets:
Concentration by type | ||||
December 31, | ||||
2018 | 2017 | |||
Industrial and miscellaneous | 56% | 56% | ||
Concentration by industry | ||||
December 31, | ||||
2018 | 2017 | |||
Financial services | 14% | 13% | ||
Utilities | 8% | 10% |
30
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
Mortgage Loans
The recorded investment of the commercial mortgage loan portfolio categorized as performing was $4,207,611 and $3,872,084 as of December 31, 2018 and 2017, respectively. These mortgages were current as of December 31, 2018 and 2017.
The maximum lending rates for commercial mortgage loans originated during the years ended December 31, 2018 and 2017 were 4.61% and 4.23%, respectively. The minimum lending rates for commercial mortgage loans originated during the years ended December 31, 2018 and 2017 were 3.51% and 3.17%, respectively.
During 2018 and 2017, the maximum percentage of any one loan to the value of security at the time of the loan, exclusive of insured or guaranteed or purchase money mortgages, was 69% and 69%, respectively.
The following table summarizes activity in the commercial mortgage provision allowance for the years ended December 31, 2018 and 2017:
Year ended December 31, | ||||||||
2018 | 2017 | |||||||
Beginning balance |
$ | 745 | $ | 2,713 | ||||
Additions charged to operations |
| 157 | ||||||
Direct write-downs charged against the allowances |
| (600 | ) | |||||
Recoveries of amounts previously charged off |
| (1,525 | ) | |||||
|
|
|
|
|
| |||
Ending balance |
$ | 745 | $ | 745 | ||||
|
|
|
|
|
|
The following tables present concentrations of the total commercial mortgage portfolio:
Concentration by type | ||||
December 31, | ||||
2018 | 2017 | |||
Multi-family |
37% | 39% | ||
Industrial |
29% | 25% | ||
Office |
17% | 17% | ||
Retail |
10% | 11% | ||
Other |
7% | 8% | ||
|
| |||
100% | 100% | |||
|
| |||
Concentration by geographic area | ||||
December 31, | ||||
2018 | 2017 | |||
Pacific |
35% | 36% | ||
East North Central |
18% | 16% | ||
South Atlantic |
14% | 13% | ||
Middle Atlantic |
10% | 11% | ||
Mountain |
9% | 10% | ||
Other |
8% | 8% | ||
West South Central |
6% | 6% | ||
|
| |||
100% | 100% | |||
|
|
31
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
Troubled Debt Restructuring
After being impaired in 2016, a security classified as industrial and miscellaneous was subject to a troubled debt restructuring in August 2017, under which the original security with a recorded investment, after impairments, of $11,710 was extinguished in exchange for new assets. Cash, equities, receivable and debt in the amounts of $1,887, $6,591, $164 and $3,068, respectively, were acquired in full satisfaction of the original debt. The new debt has extended the maturity date from December 30, 2017 to August 1, 2022 and the interest rate increased from 7% to 8%. Upon consummation of the troubled debt restructuring, a total realized capital loss of $7,789 was recorded in the Net realized capital gains (losses) less capital gains tax and transfers to interest maintenance reserve line on the Statutory Statements of Operations. There were no payment defaults recognized on previously restructured investments.
The following tables summarize the fair value hierarchy for all financial instruments and invested assets:
Fair Value Measurements at Reporting Date | ||||||||||||||||||||||||||||
Type of financial instrument | December 31, 2018 | |||||||||||||||||||||||||||
Assets: |
Aggregate fair value |
Admitted assets and liabilities |
(Level 1) | (Level 2) | (Level 3) | Net Asset Value (NAV) |
Total (All Levels) | |||||||||||||||||||||
Bonds |
$ | 20,688,043 | $ | 20,654,118 | $ | | $ | 20,666,851 | $ | 21,192 | $ | | $ | 20,688,043 | ||||||||||||||
Common stock |
35,635 | 35,635 | 35,635 | | | | 35,635 | |||||||||||||||||||||
Mortgage loans |
4,176,880 | 4,206,865 | | 4,176,880 | | | 4,176,880 | |||||||||||||||||||||
Real estate |
137,700 | 38,962 | | | 137,700 | | 137,700 | |||||||||||||||||||||
Cash, cash equivalents and short-term investments |
228,997 | 229,003 | 188,283 | 40,714 | | | 228,997 | |||||||||||||||||||||
Contract loans |
4,122,637 | 4,122,637 | | 4,122,637 | | | 4,122,637 | |||||||||||||||||||||
Other long-term invested assets |
392,232 | 338,837 | | 319,299 | 31 | 72,902 | 392,232 | |||||||||||||||||||||
Securities lending collateral assets |
45,102 | 45,102 | | 45,102 | | | 45,102 | |||||||||||||||||||||
Collateral under derivative counterparty collateral agreements |
101,561 | 101,561 | 101,561 | | | | 101,561 | |||||||||||||||||||||
Other collateral |
9,315 | 9,315 | 9,315 | | | | 9,315 | |||||||||||||||||||||
Receivable for securities |
9,654 | 9,654 | | 9,654 | | | 9,654 | |||||||||||||||||||||
Derivative instruments |
114,612 | 115,922 | 66 | 114,546 | | | 114,612 | |||||||||||||||||||||
Separate account assets |
24,639,265 | 24,654,916 | 13,236,266 | 10,975,973 | | 427,026 | 24,639,265 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Total assets |
$ | 54,701,633 | $ | 54,562,527 | $ | 13,571,126 | $ | 40,471,656 | $ | 158,923 | $ | 499,928 | $ | 54,701,633 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Liabilities: |
||||||||||||||||||||||||||||
Deposit-type contracts |
$ | 196,778 | $ | 189,895 | $ | | $ | 196,778 | $ | | $ | | $ | 196,778 | ||||||||||||||
Commercial paper |
98,859 | 98,859 | | 98,859 | | | 98,859 | |||||||||||||||||||||
Payable under securities lending agreements |
45,102 | 45,102 | | 45,102 | | | 45,102 | |||||||||||||||||||||
Collateral under derivative counterparty collateral agreements |
71,280 | 71,280 | 71,280 | | | | 71,280 | |||||||||||||||||||||
Other collateral |
3,995 | 3,995 | 3,995 | | | | 3,995 | |||||||||||||||||||||
Payable for securities |
11,096 | 11,096 | | 11,096 | | | 11,096 | |||||||||||||||||||||
Derivative instruments |
57,660 | 47,378 | 814 | 56,846 | | | 57,660 | |||||||||||||||||||||
Dollar repurchase agreements |
664,650 | 664,650 | | 664,650 | | | 664,650 | |||||||||||||||||||||
Separate account liabilities |
251,806 | 251,806 | 44 | 251,762 | | | 251,806 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Total liabilities |
$ | 1,401,226 | $ | 1,384,061 | $ | 76,133 | $ | 1,325,093 | $ | | $ | | $ | 1,401,226 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
Fair Value Measurements at Reporting Date | ||||||||||||||||||||||||
Type of financial instrument | December 31, 2017 | |||||||||||||||||||||||
Assets: |
Aggregate fair value |
Admitted assets and liabilities |
(Level 1) | (Level 2) | (Level 3) | Total (All Levels) | ||||||||||||||||||
Bonds |
$ | 20,777,543 | $ | 19,944,862 | $ | | $ | 20,750,605 | $ | 26,938 | $ | 20,777,543 | ||||||||||||
Mortgage loans |
3,858,883 | 3,871,338 | | 3,858,883 | | 3,858,883 | ||||||||||||||||||
Real estate |
137,526 | 37,768 | | | 137,526 | 137,526 | ||||||||||||||||||
Cash, cash equivalents and short-term investments |
242,084 | 242,084 | 198,869 | 43,215 | | 242,084 | ||||||||||||||||||
Contract loans |
4,078,669 | 4,078,669 | | 4,078,669 | | 4,078,669 | ||||||||||||||||||
Other long-term invested assets |
412,019 | 325,181 | | 363,198 | 48,821 | 412,019 | ||||||||||||||||||
Collateral under derivative counterparty collateral agreements |
57,420 | 57,420 | 57,420 | | | 57,420 | ||||||||||||||||||
Receivable for securities |
23,760 | 23,135 | | 23,760 | | 23,760 | ||||||||||||||||||
Derivative instruments |
78,431 | 68,439 | 98 | 78,333 | | 78,431 | ||||||||||||||||||
Separate account assets |
28,222,102 | 28,197,126 | 16,058,519 | 12,163,583 | | 28,222,102 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total assets |
$ | 57,888,437 | $ | 56,846,022 | $ | 16,314,906 | $ | 41,360,246 | $ | 213,285 | $ | 57,888,437 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Liabilities: |
||||||||||||||||||||||||
Deposit-type contracts |
$ | 219,909 | $ | 206,134 | $ | | $ | 219,909 | $ | | $ | 219,909 | ||||||||||||
Commercial paper |
99,886 | 99,886 | | 99,886 | | 99,886 | ||||||||||||||||||
Collateral under derivative counterparty collateral agreements |
14,332 | 14,332 | 14,332 | | | 14,332 | ||||||||||||||||||
Payable for securities |
2,364 | 2,364 | | 2,364 | | 2,364 | ||||||||||||||||||
Derivative instruments |
106,106 | 88,843 | 26 | 106,080 | | 106,106 | ||||||||||||||||||
Separate account liabilities |
409,275 | 409,275 | 9 | 409,266 | | 409,275 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total liabilities |
$ | 851,872 | $ | 820,834 | $ | 14,367 | $ | 837,505 | $ | | $ | 851,872 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds and common stock
The fair values for bonds and common stock are generally based upon evaluated prices from independent pricing services. In cases where these prices are not readily available, fair values are estimated by the Company. To determine estimated fair value for these instruments, the Company generally utilizes discounted cash flow models with market observable pricing inputs such as spreads, average life, and credit quality. Fair value estimates are made at a specific point in time, based on available market information and judgments about financial instruments, including estimates of the timing and amounts of expected future cash flows and the credit standing of the issuer or counterparty.
Mortgage loans
Mortgage loan fair value estimates are generally based on discounted cash flows. A discount rate matrix is used where the discount rate valuing a specific mortgage generally corresponds to that mortgages remaining term and credit quality. Management believes the discount rate used is comparable to the credit, interest rate, term, servicing costs, and risks of loans similar to the portfolio loans that the Company would make today given its internal pricing strategy.
Real estate
The estimated fair value for real estate is based on the unadjusted appraised value which includes factors such as comparable property sales, property income analysis, and capitalization rates.
33
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
Cash, cash equivalents, short-term investments, collateral receivable and payable under securities lending agreements, receivable and payable for securities, dollar repurchase agreements and commercial paper
The amortized cost of cash, cash equivalents, short-term investments, collateral receivable and payable under securities lending agreements, receivable and payable for securities, dollar repurchase agreements and commercial paper is a reasonable estimate of fair value due to their short-term nature and the high credit quality of the issuers, counterparties and obligor. Cash equivalent investments also include money market funds that are valued using unadjusted quoted prices in active markets.
Contract loans
The Company believes the fair value of contract loans approximates book value. Contract loans are funds provided to contract holders in return for a claim on the contract. The funds provided are limited to the cash surrender value of the underlying contract. The nature of contract loans is to have a negligible default risk as the loans are fully collateralized by the value of the contract. Contract loans do not have a stated maturity and the balances and accrued interest are repaid either by the contractholder or with proceeds from the contract. Due to the collateralized nature of contract loans and unpredictable timing of repayments, the Company believes the fair value of contract loans approximates carrying value.
Other long-term invested assets
The fair values of other long-term invested assets are based on the specific asset type. Other invested assets that are held as bonds, such as surplus notes, are primarily valued the same as bonds. For low-income housing tax credits, amortized cost approximates fair value.
Limited partnership interests represent the Companys minority ownership interests in pooled investment funds. These funds employ varying investment strategies that primarily make private equity investments across diverse industries and geographical focuses. The net asset value, determined using the partnership financial statement reported capital account adjusted for other relevant information, which may impact the exit value of the investments, is used as a practical expedient to estimate fair value. Distributions by these investments are generated from investment gains, from operating income generated by the underlying investments of the funds and from liquidation of the underlying assets of the funds, which are estimated to be liquidated over the next one to 10 years. In the absence of permitted sales of its ownership interest, the Company will be redeemed out of the partnership interests through distributions.
Collateral under derivative counterparty collateral agreements and other collateral
Included in other assets is cash collateral received from or pledged to counterparties and included in other liabilities is the obligation to return the cash collateral to the counterparties. The carrying value of the collateral is a reasonable estimate of fair value.
Derivative instruments
The estimated fair values of OTC derivatives, primarily consisting of cross-currency swaps, interest rate swaps and interest rate swaptions, are the estimated amount the Company would receive or pay to terminate the agreements at the end of each reporting period, taking into consideration current interest rates and other relevant factors.
Separate account assets
Separate account assets and liabilities primarily include investments in mutual funds, unregistered funds, most of which are not subject to redemption restrictions, bonds, and short-term securities. Mutual funds and unregistered funds are recorded at net asset value, which approximates fair value, on a daily basis. The bond and short-term investments are valued in the same manner, and using the same pricing sources and inputs as the bond and short-term investments of the Company.
Deposit-type contracts
Fair values for liabilities under deposit-type insurance contracts are estimated using discounted liability calculations, adjusted to approximate the effect of current market interest rates for the assets supporting the liabilities.
34
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
Fair value hierarchy
The following tables present information about the Companys financial assets and liabilities carried at fair value and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value:
Fair Value Measurements at Reporting Date | ||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Net Asset Value | Total | |||||||||||||||||||
Assets: |
(Level 1) | (Level 2) | (Level 3) | (NAV) | (All Levels) | |||||||||||||||
Bonds |
||||||||||||||||||||
Industrial and miscellaneous |
$ | | $ | | $ | 1,275 | $ | | $ | 1,275 | ||||||||||
Common stock |
||||||||||||||||||||
Mutual funds |
30,969 | | | | 30,969 | |||||||||||||||
Industrial and miscellaneous |
4,666 | | | | 4,666 | |||||||||||||||
Other invested assets |
||||||||||||||||||||
Limited partnerships |
| | | 72,902 | 72,902 | |||||||||||||||
Derivatives |
||||||||||||||||||||
Interest rate swaps |
| 8,964 | | | 8,964 | |||||||||||||||
Cross-currency swaps |
| 39,705 | | | 39,705 | |||||||||||||||
Interest rate swaptions |
| 173 | | | 173 | |||||||||||||||
Separate account assets (1) |
13,212,700 | 9,887,836 | | 427,026 | 23,527,562 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total assets |
$ | 13,248,335 | $ | 9,936,678 | $ | 1,275 | $ | 499,928 | $ | 23,686,216 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Liabilities: |
||||||||||||||||||||
Derivatives |
||||||||||||||||||||
Interest rate swaps |
$ | | 21,740 | $ | | $ | | $ | 21,740 | |||||||||||
Cross-currency swaps |
| 14,760 | | | 14,760 | |||||||||||||||
Separate account liabilities (1) |
44 | 251,762 | | | 251,806 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total liabilities |
$ | 44 | $ | 288,262 | $ | | $ | | $ | 288,306 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes only separate account investments which are carried at the fair value of the underlying invested assets or liabilities owned by the separate accounts.
Fair Value Measurements at Reporting Date | ||||||||||||||||
December 31, 2017 | ||||||||||||||||
Total | ||||||||||||||||
Assets: |
(Level 1) | (Level 2) | (Level 3) | (All Levels) | ||||||||||||
Bonds |
||||||||||||||||
Industrial and miscellaneous |
$ | | $ | | $ | 1,297 | $ | 1,297 | ||||||||
States |
| 228 | | 228 | ||||||||||||
Derivatives |
||||||||||||||||
Interest rate swaps |
| 9,732 | | 9,732 | ||||||||||||
Cross-currency swaps |
| 20,320 | | 20,320 | ||||||||||||
Interest rate swaptions |
| 75 | | 75 | ||||||||||||
Separate account assets (1) |
16,057,788 | 11,172,811 | | 27,230,599 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total assets |
$ | 16,057,788 | $ | 11,203,166 | $ | 1,297 | $ | 27,262,251 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Liabilities: |
||||||||||||||||
Derivatives |
||||||||||||||||
Interest rate swaps |
$ | | $ | 13,643 | $ | | $ | 13,643 | ||||||||
Cross-currency swaps |
| 41,599 | | 41,599 | ||||||||||||
Separate account liabilities (1) |
9 | 409,266 | | 409,275 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total liabilities |
$ | 9 | $ | 464,508 | $ | | $ | 464,517 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) Include only separate account investments which are carried at the fair value of the underlying invested assets or liabilities owned by the separate accounts.
35
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
The following table summarizes the Companys non-admitted assets:
December 31, 2018 | December 31, 2017 | |||||||||||||||||||||||
Type |
Asset | Non- admitted asset |
Admitted asset |
Asset | Non- admitted asset |
Admitted asset | ||||||||||||||||||
Common stock |
$ | 131,883 | $ | | $ | 131,883 | $ | 109,948 | $ | 1,971 | $ | 107,977 | ||||||||||||
Cash, cash equivalents and short-term investments |
229,434 | 431 | 229,003 | 242,084 | | 242,084 | ||||||||||||||||||
Other invested assets |
607,793 | 1,006 | 606,787 | 569,702 | 3,515 | 566,187 | ||||||||||||||||||
Premiums deferred and uncollected |
25,904 | 109 | 25,795 | 16,232 | 313 | 15,919 | ||||||||||||||||||
Deferred income taxes |
340,645 | 190,148 | 150,497 | 382,188 | 232,873 | 149,315 | ||||||||||||||||||
Due from parent, subsidiaries and affiliate |
94,542 | 44,435 | 50,107 | 110,901 | 43,546 | 67,355 | ||||||||||||||||||
Other prepaid assets |
28,150 | 28,150 | | 16,478 | 16,478 | | ||||||||||||||||||
Capitalized internal use software |
58,658 | 58,658 | | 55,279 | 55,279 | | ||||||||||||||||||
Furniture, fixtures and equipment |
4,949 | 4,949 | | 16,182 | 5,196 | 10,986 | ||||||||||||||||||
Reinsurance recoverable |
8,468 | 378 | 8,090 | 7,090 | | 7,090 | ||||||||||||||||||
Other assets |
234,504 | 2,539 | 231,965 | 152,955 | 553 | 152,402 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total |
$ | 1,764,930 | $ | 330,803 | $ | 1,434,127 | $ | 1,679,039 | $ | 359,724 | $ | 1,319,315 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table summarizes the Companys aggregate Statement of Admitted Assets, Liabilities, Capital and Surplus values of all subsidiary, controlled and affiliated entities (SCA), except insurance SCA entities as follows:
December 31, 2018 | December 31, 2017 | |||||||||||||||||||||||
Type |
Asset | Non- admitted asset |
Admitted asset |
Asset | Non- admitted asset |
Admitted asset | ||||||||||||||||||
Common stock |
$ | 13,544 | $ | | $ | 13,544 | $ | 15,636 | $ | 1,971 | $ | 13,665 | ||||||||||||
Other invested assets |
143,533 | 975 | 142,558 | 151,318 | 1,610 | 149,708 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total |
$ | 157,077 | $ | 975 | $ | 156,102 | $ | 166,954 | $ | 3,581 | $ | 163,373 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7. Premiums Deferred and Uncollected
The following table summarizes the Companys ordinary and group life insurance premiums and annuity considerations deferred and uncollected, both gross and net of loading:
December 31, 2018 | December 31, 2017 | |||||||||||||||
Type |
Gross | Net of loading |
Gross | Net of loading | ||||||||||||
Ordinary new business |
$ | 427 | $ | 221 | $ | 226 | $ | 64 | ||||||||
Ordinary renewal business |
31,069 | 25,544 | 20,681 | 16,095 | ||||||||||||
Group life |
32 | 30 | (260 | ) | (240 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
$ | 31,528 | $ | 25,795 | $ | 20,647 | $ | 15,919 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
8. Business Combination and Goodwill
The Companys goodwill is the result of two types of transactions.
Goodwill that arises as a result of the acquisition of subsidiary limited liability companies is included in other invested assets in the accompanying Statutory Statement of Admitted Assets, Liabilities and Capital. On August 29, 2014, the Company completed the acquisition of all of the voting equity interests in the J.P. Morgan Retirement Plan Services (RPS) large-market
36
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
recordkeeping business. This transaction was accounted for as a statutory purchase. Goodwill of $51,098 was recorded in other invested assets, which will be amortized over 10 years. At December 31, 2018 and 2017, the Company has $28,955 and $34,065, respectively, of admitted goodwill related to this acquisition. Goodwill amortization of $5,110 was recorded for the years ended December 31, 2018, 2017 and 2016.
Acquisition date | Cost of acquired entity |
Original amount of admitted goodwill |
Admitted goodwill as of December 31, 2018 |
Amount of goodwill amortized for the year ended December 31, 2018 |
Admitted goodwill as a book/adjusted carrying |
|||||||||||||||
August 29, 2014 |
$ | 64,169 | $ | 51,098 | $ | 28,955 | $ | 5,110 | 104.4% |
In addition, goodwill that arises as a result of the acquisition of various assumption reinsurance agreements is included in goodwill in the accompanying Statutory Statement of Admitted Assets, Liabilities and Capital. At December 31, 2018 and 2017, this goodwill was fully amortized. During each of the years ended December 31, 2018, 2017 and 2016, the Company recorded $0, $977 and $12,929, respectively, of goodwill amortization related to these acquisitions.
In the normal course of its business, the Company seeks to limit its exposure to loss on any single insured and to recover a portion of benefits paid by ceding risks to other insurance enterprises under excess coverage and coinsurance contracts. The Company retains an initial maximum of $3,500 of coverage per individual life. This initial retention limit of $3,500 may increase due to automatic policy increases in coverage at a maximum rate of $175 per annum, with an overall maximum increase in coverage of $1,000.
Ceded reinsurance contracts do not relieve the Company from its obligations to policyholders. The failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies.
The Company assumes risk from approximately 40 insurers and reinsurers by participating in yearly renewable term and coinsurance pool agreements. When assuming risk, the Company seeks to generate revenue while maintaining reciprocal working relationships with these partners as they also seek to limit their exposure to loss on any single life.
Maximum capacity to be retained by the Company is dictated at the treaty level and is monitored annually to ensure the total risk retained on any one life is limited to a maximum retention of $4,500.
The Company did not have any write-offs for uncollectible reinsurance receivables during the years ended December 31, 2018 and 2017 for losses incurred, loss adjustment expenses incurred or premiums earned.
The Company does not have any uncollectible reinsurance, commutation of ceded reinsurance, or certified reinsurer downgraded of status subject to revocation.
Aggregate reserves are computed in accordance with the Commissioners Annuity Reserve Valuation Method (CARVM) and the Commissioners Reserve Valuation Method (CRVM), the standard statutory reserving methodologies.
The significant assumptions used to determine the liability for future life insurance benefits are as follows:
37
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
Interest |
- Life Insurance | 2.25% to 6.00% | ||
- Annuity Funds | 3.00% to 11.25% | |||
- Disability | 2.50% to 6.00% | |||
Mortality |
- Life Insurance | Various valuation tables, primarily including 1941, 1958, 1980 and 2001 Commissioners Standard Ordinary (CSO) tables, and American Experience | ||
- Annuity Funds | Various annuity valuation tables, primarily including the GA 1951, 71, 83a and 2012 Individual Annuitant Mortality (IAM), Group Annuity Reserve (GAR) 94, 1971 and 1983 Group Annuity Mortality (GAM), and Annuity 2000 | |||
Morbidity |
- Disability | 1970 Intercompany DISA Group Disability Tables |
The Company waives deduction of deferred fractional premiums upon the death of the insured. When surrender values exceed aggregate reserves, excess cash value reserves are held.
Policies issued at premium corresponding to ages higher than the true ages are valued at the rated-up ages. Policies providing for payment at death during certain periods of an amount less than the full amount of insurance, being policies subject to liens, are valued as if the full amount is payable without any deduction.
For policies issued with, or subsequently subject to, an extra premium payable annually, an extra reserve is held. The extra premium reserve is the unearned gross extra premium payable during the year if the policies are rated for reasons other than medical impairments. For medical impairments, the extra premium reserve is calculated as the excess of the reserve based on rated mortality over that based on standard mortality. All substandard annuities are valued at their true ages.
At December 31, 2018 and 2017, the Company had $3,904,519 and $4,354,703, respectively of insurance in force for which the gross premiums are less than the net premiums according to the standard valuation set by the Division.
Tabular interest, tabular interest on funds not involving life contingencies and tabular cost have been determined from the basic data for the calculation of aggregate reserves. Tabular less actual reserves released has been determined from basic data for the calculation of aggregate reserves and the actual reserves released.
The withdrawal characteristics of annuity reserves and deposit liabilities are as follows:
December 31, 2018 | ||||||||||||||||||||
General Account | Separate Account with Guarantees |
Separate Account Non- guaranteed |
Total | Percent of total gross | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Subject to discretionary withdrawal: |
||||||||||||||||||||
With market value adjustment |
$ | 850,240 | $ | | $ | | $ | 850,240 | 2.8 | % | ||||||||||
At book value less current surrender charges of 5% or more |
779,760 | | | 779,760 | 2.5 | % | ||||||||||||||
At fair value |
| 6,460,894 | 11,311,267 | 17,772,161 | 57.5 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Total with adjustment or at market value |
1,630,000 | 6,460,894 | 11,311,267 | 19,402,161 | 62.8 | % | ||||||||||||||
At book value without adjustment (minimal or no charge adjustment) |
155,150 | | | 155,150 | 0.5 | % | ||||||||||||||
Not subject to discretionary withdrawal |
11,355,177 | | | 11,355,177 | 36.7 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Total gross |
13,140,327 | 6,460,894 | 11,311,267 | 30,912,488 | 100.0 | % | ||||||||||||||
|
|
| ||||||||||||||||||
Reinsurance ceded |
1,479 | | | 1,479 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total, net |
$ | 13,138,848 | $ | 6,460,894 | $ | 11,311,267 | $ | 30,911,009 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
38
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
December 31, 2017 | ||||||||||||||||||||
General Account |
Separate Account with Guarantees |
Separate guaranteed |
Total | Percent of total gross | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Subject to discretionary withdrawal: |
||||||||||||||||||||
With market value adjustment |
$ | 780,008 | $ | | $ | | $ | 780,008 | 2.3% | |||||||||||
At book value less current surrender charges of 5% or more |
716,402 | | | 716,402 | 2.1% | |||||||||||||||
At fair value |
| 6,914,918 | 14,390,470 | 21,305,388 | 62.4% | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Total with adjustment or at market value |
1,496,410 | 6,914,918 | 14,390,470 | 22,801,798 | 66.8% | |||||||||||||||
At book value without adjustment (minimal or no charge adjustment) |
159,104 | | | 159,104 | 0.5% | |||||||||||||||
Not subject to discretionary withdrawal |
11,181,649 | | | 11,181,649 | 32.7% | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Total gross |
12,837,163 | 6,914,918 | 14,390,470 | 34,142,551 | 100.0% | |||||||||||||||
|
|
| ||||||||||||||||||
Reinsurance ceded |
73,007 | | | 73,007 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total, net |
$ | 12,764,156 | $ | 6,914,918 | $ | 14,390,470 | $ | 34,069,544 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The following information is obtained from the applicable exhibit in the Companys December 31, 2018 and 2017 annual statements and related separate account annual statement, both of which are filed with the Division and is provided to reconcile annuity reserves and deposit funds to amounts reported in the Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus:
December 31, | ||||||||
2018 | 2017 | |||||||
Life and Accident and Health Annual Statement (net of reinsurance): |
||||||||
Annuities included in aggregate reserve for life policies and contracts |
$ | 12,936,341 | $ | 12,544,414 | ||||
Supplementary contracts with life contingencies and other contracts included in aggregate reserve for life policies and contracts |
12,611 | 13,608 | ||||||
Liability for deposit-type contracts |
189,896 | 206,134 | ||||||
|
|
|
|
|
| |||
Subtotal - general account |
13,138,848 | 12,764,156 | ||||||
Separate Accounts Annual Statement: |
||||||||
Annuities included in aggregate reserve for life policies and contracts |
17,772,161 | 21,305,388 | ||||||
|
|
|
|
|
| |||
Total |
$ | 30,911,009 | $ | 34,069,544 | ||||
|
|
|
|
|
|
11. Liability for Unpaid Claims and Claim Adjustment Expenses
Activity in the accident and health liability for unpaid claims and for claim adjustment expenses included in aggregate reserve for life policies and contracts and accident and health policies, excluding unearned premium reserves, is summarized as follows:
2018 | 2017 | |||||||
Balance, January 1, net of reinsurance of $25,283 and $28,843 |
$ | 243,517 | $ | 240,280 | ||||
Incurred related to: |
||||||||
Current year |
38,844 | 53,969 | ||||||
Prior year |
6,634 | (6,728 | ) | |||||
|
|
|
|
|
| |||
Total incurred |
45,478 | 47,241 | ||||||
|
|
|
|
|
| |||
Paid related to: |
||||||||
Current year |
(10,375 | ) | (6,896 | ) | ||||
Prior year |
(31,091 | ) | (37,108 | ) | ||||
|
|
|
|
|
| |||
Total paid |
(41,466 | ) | (44,004 | ) | ||||
|
|
|
|
|
| |||
Balance, December 31, net of reinsurance of $19,082 and $25,283 |
$ | 247,529 | $ | 243,517 | ||||
|
|
|
|
|
|
39
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
Reserves for incurred claims and claim adjustment expenses attributable to insured events of prior years has increased (decreased) by $6,634 and $(6,728) during the years ended December 31, 2018 and 2017, respectively. The change in both years is the result of ongoing analysis of recent claim development trends.
The Company has a commercial paper program that is partially supported by a $50,000 credit facility agreement. The commercial paper has been given a rating of A-1+ by Standard & Poors Ratings Services and a rating of P-1 by Moodys Investors Service, each being the highest rating available. The Companys issuance of commercial paper is not used to fund daily operations and does not have a significant impact on the Companys liquidity.
The following table provides information regarding the Companys commercial paper program:
December 31, | ||||||||
2018 | 2017 | |||||||
Face value |
$ | 98,859 | $ | 99,886 | ||||
Carrying value |
$ | 98,859 | $ | 99,886 | ||||
Interest expense paid |
$ | 1,746 | $ | 974 | ||||
Effective interest rate |
2.5% - 2.7% | 1.4% - 1.7% | ||||||
Maturity range (days) |
16 - 25 | 19 - 67 |
The Company utilizes separate accounts to record and account for assets and liabilities for particular lines of business and/or transactions. The Company reported assets and liabilities from the following product lines into a separate account:
| Individual Annuity Product |
| Group Annuity Product |
| Variable Life Insurance Product |
| Hybrid Ordinary Life Insurance Product |
| Individual Indexed-Linked Annuity Product |
In accordance with the domiciliary state procedures for approving items within the separate account, the separate account classification of the following items are supported by Colorado Insurance Code Section 10-7-402:
| Individual Annuity |
| Group Annuity |
| Variable Life Insurance Product |
The following items are supported by direct approval by the Commissioner:
| Hybrid Ordinary Life Insurance Product |
| Group Annuity - Custom Stable Value Asset Funds |
| Variable Life Insurance Product |
| Individual Indexed-Linked Annuity Product |
The Companys separate accounts invest in shares of Great-West Funds, Inc. and Putnam Funds, open-end management investment companies, which are related parties of the Company, and shares of other non-affiliated mutual funds. and government and corporate bonds.
Some assets within each of the Companys separate accounts are considered legally insulated whereas others are not legally insulated from the general account. The legal insulation of the separate accounts prevents such assets from being generally available to satisfy claims resulting from the general account.
40
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
At December 31, 2018 and 2017, the Companys separate account assets that are legally insulated from the general account claims are $24,652,973 and $28,192,883, respectively.
Some separate account liabilities are guaranteed by the general account. In accordance with the guarantees provided, if the investment proceeds are insufficient to cover the rate of return guaranteed for the product, the policyholder proceeds will be remitted by the general account. To compensate the general account for the risk taken, the separate account has paid risk charges of $11,608, $12,581, $12,961, $12,542 and $12,171 for the years ended December 31, 2018, 2017, 2016, 2015 and 2014, respectively. No separate account guarantees were paid by the general account for the years ending December 31, 2018, 2017, 2016, 2015 and 2014, respectively.
Separate accounts with guarantees
The Government Guaranteed Funds are separate accounts investing in fixed income securities backed by the credit of the U.S. Government, its agencies or its instrumentalities.
The Stable Asset Funds invest in investment-grade corporate bonds in addition to the above mentioned securities.
The Company also has separate accounts comprised of assets underlying variable universal life policies issued privately to accredited investors. The accounts invest in investment grade fixed income securities.
The Individual Indexed-Linked Annuity Product provides returns based on the performance of one or more indices and invests in fixed income securities. The returns from these securities are invested in derivative instruments which mimic the returns of select indices. There is also a return of premium death benefit guarantee to policyholders.
The Government Guaranteed Funds and Stable Asset Funds have a guaranteed minimum crediting rate of at least 0%. All of the above separate accounts provide a book value guarantee. Some of them also provide a death benefit of the greater of account balance or premium paid.
Distributions to a participant are based on the participants account balance and are permitted for the purpose of paying a benefit to a participant. Distributions for purposes other than paying a benefit to a participant may be restricted. Participants distributions are based on the amount of their account balance, whereas, distributions as a result of termination of the group annuity contract are based on net assets attributable to the contract and can be made to the group through (1) transfer of the underlying securities and any remaining cash balance, or (2) transfer of the cash balance after sale of the Funds securities.
Most guaranteed separate account assets and related liabilities are carried at fair value. Certain separate account assets are carried at book value based on the prescribed deviation from the Division.
Non-guaranteed separate accounts
The non-guaranteed separate accounts include unit investment trusts or series accounts that invest in diversified open-end management investment companies. These separate account assets and related liabilities are carried at fair value.
The investments in shares are valued at the closing net asset value as determined by the appropriate fund/portfolio at the end of each day. The net investment experience of the separate account is credited directly to the policyholder and can be positive or negative. Some of the separate accounts provide an incidental death benefit of the greater of the policyholders account balance or premium paid and some provide an incidental annual withdrawal benefit for the life of the policyholder. Certain contracts contain provisions relating to a contingent deferred sales charge. In such contracts, charges will be made for total or partial surrender of a participant annuity account in excess of the free amount before the retirement date by a deduction from a participants account. The free amount is an amount equal to 10% of the participant account value at December 31 of the calendar year prior to the partial or total surrender.
The following tables provide information regarding the Companys separate accounts:
41
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
Year Ended December 31, 2018 | ||||||||||||
Non-indexed guaranteed less than/equal to 4% |
Non-guaranteed separate account |
Total | ||||||||||
Premiums, considerations or deposits |
$ | 721,339 | $ | 1,900,171 | $ | 2,621,510 | ||||||
|
|
|
|
|
|
|
|
| ||||
Reserves |
||||||||||||
For accounts with assets at: |
||||||||||||
Fair value |
$ | 7,286,636 | $ | 15,682,027 | $ | 22,968,663 | ||||||
Amortized cost |
1,107,812 | | 1,107,812 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Total reserves |
$ | 8,394,448 | $ | 15,682,027 | $ | 24,076,475 | ||||||
|
|
|
|
|
|
|
|
| ||||
By withdrawal characteristics: |
||||||||||||
At fair value |
$ | 7,286,636 | $ | 15,682,027 | $ | 22,968,663 | ||||||
At book value without fair value adjustment and with current surrender charge less than 5% |
1,107,812 | | 1,107,812 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Total subject to discretionary withdrawals |
$ | 8,394,448 | $ | 15,682,027 | $ | 24,076,475 | ||||||
|
|
|
|
|
|
|
|
| ||||
Year Ended December 31, 2017 | ||||||||||||
Non-indexed guaranteed less than/equal to 4% |
Non-guaranteed separate account |
Total | ||||||||||
Premiums, considerations or deposits |
$ | 560,537 | $ | 1,888,820 | $ | 2,449,357 | ||||||
|
|
|
|
|
|
|
|
| ||||
Reserves |
||||||||||||
For accounts with assets at: |
||||||||||||
Fair value |
$ | 7,918,332 | $ | 18,643,242 | $ | 26,561,574 | ||||||
Amortized cost |
958,780 | | 958,780 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Total reserves |
$ | 8,877,112 | $ | 18,643,242 | $ | 27,520,354 | ||||||
|
|
|
|
|
|
|
|
| ||||
By withdrawal characteristics: |
||||||||||||
At fair value |
$ | 7,918,332 | $ | 18,643,242 | $ | 26,561,574 | ||||||
At book value without fair value adjustment and with current surrender charge less than 5% |
958,780 | | 958,780 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Total subject to discretionary withdrawals |
$ | 8,877,112 | $ | 18,643,242 | $ | 27,520,354 | ||||||
|
|
|
|
|
|
|
|
|
A reconciliation of the amounts transferred to and from the separate accounts is presented below:
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Transfers as reported in the Summary of Operations of the separate account statement: |
||||||||||||
Transfers to separate accounts |
$ | 2,621,510 | $ | 2,449,357 | $ | 2,686,225 | ||||||
Transfers from separate accounts |
(5,198,817 | ) | (4,417,525 | ) | (3,561,699 | ) | ||||||
|
|
|
|
|
|
|
|
| ||||
Net transfers from separate accounts |
(2,577,307 | ) | (1,968,168 | ) | (875,474 | ) | ||||||
Reconciling adjustments: |
||||||||||||
Net transfer of reserves to separate accounts |
1,464,314 | 1,023,384 | 773,253 | |||||||||
Miscellaneous other |
528 | 140 | 739 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Net transfers as reported in the Statements of Operations |
$ | (1,112,465 | ) | $ | (944,644 | ) | $ | (101,482 | ) | |||
|
|
|
|
|
|
|
|
|
42
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
14. Capital and Surplus, Dividend Restrictions, and Other Matters
On November 15, 2004, the Company issued a surplus note in the face amount of $195,000 to GWL&A Financial. The proceeds were used to redeem a $175,000 surplus note issued May 4, 1999 and for general corporate purposes. The new surplus note bears interest at the rate of 6.675% and is due November 14, 2034. The carrying amount of the surplus note was $194,558 and $194,530 at December 31, 2018 and 2017, respectively. Payments of principal and interest under this surplus note can be made only with prior written approval of the Commissioner of Insurance of the State of Colorado. Such payments are payable only out of surplus funds of the Company and only if at the time of such payment, and after giving effect to the making thereof, the financial condition of the Company is such that its surplus would not fall below two and one-half times the authorized control level as required by the most recent risk-based capital calculations. Subject to the foregoing restrictions on payment of principal and interest, (a) interest is payable on the principal sum of the surplus note semi-annually, in arrears, on May 14 and November 14 of each year, and (b) the surplus note may only be redeemed prior to its stated maturity in connection with (i) a mandatory redemption by the Company in the event of a redemption or acceleration by GWL&A Financial Inc., of its 6.675% junior subordinated deferrable debentures due November 14, 2034, or (ii) an optional redemption by the Company at any time on or after November 15, 2024. Interest paid on the note was $13,016 for all the years ended December 31, 2018, 2017 and 2016, respectively, bringing total interest paid from inception to December 31, 2018 to $182,227. The amount of unapproved principal and interest was $0 at December 31, 2018 and 2017.
On May 19, 2006, the Company issued a surplus note in the face amount and carrying amount of $333,400 to GWL&A Financial Inc. The proceeds were used for general corporate purposes. Initially, the surplus note bore interest at the rate of 7.203% per annum, and was payable on each May 16 and November 16 until May 16, 2016. After May 16, 2016, the surplus note bears an interest rate of 2.588% plus the then current three-month London Interbank Offering Rate. The carrying amount of the surplus note was $0 and $333,400 at December 31, 2018 and 2017. The surplus note became redeemable by the company at the principal amount plus any accrued and unpaid interest after May 16, 2016. On June 15, 2018, this surplus note was redeemed in full. Payments of principal and interest under the surplus note can be made only with prior written approval of the Commissioner of Insurance of the State of Colorado. Such payments are payable out of surplus funds of the Company and only if at the time of such payment, and after giving effect to the making thereof, the financial condition of the Company is such that its surplus would not fall below two and one-half times the authorized control level as required by the most recent risk-based capital calculations. Interest paid on the note was $6,868, $12,721 and $16,137 for the year ended December 31, 2018, 2017 and 2016, respectively, bringing total interest paid from inception to December 31, 2018 to $262,875. The amount of unapproved principal and interest was $0 at December 31, 2018 and 2017.
On December 29, 2017, the Company issued a surplus note in the face amount and carrying amount of $12,000 to GWL&A Financial Inc. The proceeds were used for general corporate purposes. The surplus note bears an interest rate of 3.5% per annum. The note matures of December 29, 2027. Payments of principal and interest under the surplus note can be made only with prior written approval of the Commissioner of Insurance of the State of Colorado. Such payments are payable out of surplus funds of the Company and only if at the time of such payment, and after giving effect to the making thereof, the financial condition of the Company is such that its surplus would not fall below two and one-half times the authorized control level as required by the most recent risk-based capital calculations. Interest paid on the note during 2018, 2017 and 2016 amounted to $420, $2 and $0, respectively, bringing total interest paid from inception to December 31, 2018 to $422. The amount of unapproved principal and interest was $0 at December 31, 2018.
On May 17, 2018, the Company issued a surplus note in the face amount and carrying amount of $346,218 to GWL&A Financial Inc. The proceeds were used to redeem the $333,400 surplus note issued in 2006 and for general corporate purposes. The surplus note bears an interest rate of 4.881% per annum. The note matures on May 17, 2048. Payments of principal and interest under the surplus note can be made only with prior written approval of the Commissioner of Insurance of the State of Colorado. Such payments are payable out of surplus funds of the Company and only if at the time of such payment, and after giving effect to the making thereof, the financial condition of the Company is such that its surplus would not fall below two and one-half times the authorized control level as required by the most recent risk-based capital calculations. Interest paid on the note during 2018 and 2017 amounted to $10,515 and $0, respectively, bringing total interest paid from inception to December 31, 2018 to $10,515 The amount of unapproved principal and interest was $0 at December 31, 2018.
In the first quarter of 2018, the Company realized a $39,921 after tax gain on an interest rate swap that hedged the existing $333,400 surplus note. The Company adjusted the basis of the hedged item, in this case the surplus note, for the amount of the after tax gain. Further, the Company accounted for the redemption of the $333,400 surplus note and the issuance of the $346,218 surplus note in the second quarter as debt modification instead of debt extinguishment. Therefore, the after tax swap
43
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
gain will be amortized into income over the 30 year life of the new surplus note. Amortization of the gain during 2018, 2017 and 2016 amounted to $998, $0 and $0, respectively bringing the total amortization from inception to December 31, 2018 amounted to $998, leaving an unamortized balance of $38,923 in surplus as part of the surplus note amounts.
Interest paid to GWL&A Financial attributable to these surplus notes, was $30,819, $25,739 and $29,153 for the years ended December 31, 2018, 2017 and 2016, respectively.
As an insurance company domiciled in the State of Colorado, the Company is required to maintain a minimum of $2,000 of capital and surplus. In addition, the maximum amount of dividends which can be paid to stockholders by insurance companies domiciled in the State of Colorado, without prior approval of the Insurance Commissioner, is subject to restrictions relating to statutory capital and surplus and statutory net gain from operations. The Company may pay an amount less than $132,692 of dividends during the year ended December 31, 2019, without the prior approval of the Colorado Insurance Commissioner. Prior to any payment of dividends, the Company provides notice to the Colorado Insurance Commissioner. Dividends are non-cumulative.
The Company paid cash dividends on common stock during 2018 as follows: $24,000 on March 30, 2018 (ordinary); $20,000 on May 1, 2018 (extraordinary); $55,895 on May 17, 2018 (extraordinary); $30,000 on September 28, 2018 (extraordinary) and $22,400 on September 29, 2018 (extraordinary). Dividends during 2017 were paid as follows: $77,000 on March 15, 2017 (extraordinary); $60,301 on June 15, 2017 (ordinary); and $8,000 on September 29, 2017 (ordinary). Dividends are paid as determined by the Board of Directors, subject to the limitations described above.
The portion of unassigned funds (surplus) represented or (reduced) by each of the following items is:
December 31, | ||||||||
2018 | 2017 | |||||||
Unrealized gains (losses) |
$ | 152,801 | $ | 165,416 | ||||
Non-admitted assets |
(330,803 | ) | (359,724 | ) | ||||
Asset valuation reserve |
(204,393 | ) | (203,546 | ) | ||||
Provision for reinsurance |
(17 | ) | (17 | ) | ||||
Separate account business |
(1,076 | ) | (868 | ) |
Risk-based capital (RBC) is a regulatory tool for measuring the minimum amount of capital appropriate for a life, accident and health organization to support its overall business operations in consideration of its size and risk profile. The Division requires the Company to maintain minimum capital and surplus equal to the company action level as calculated in the RBC model. The Company exceeds the required amount.
The following table presents the components of the net admitted deferred tax asset (liability):
December 31, 2018 | December 31, 2017 | Change | ||||||||||||||||||||||||||||||||||
Ordinary | Capital | Total | Ordinary | Capital | Total | Ordinary | Capital | Total | ||||||||||||||||||||||||||||
Gross deferred tax assets |
$ | 368,917 | $ | 2,793 | $ | 371,710 | $ | 388,131 | $ | 16,580 | $ | 404,711 | $ | (19,214 | ) | $ | (13,787 | ) | $ | (33,001 | ) | |||||||||||||||
Valuation allowance adjustment |
| | | | | | | | | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Adjusted gross deferred tax asset |
368,917 | 2,793 | 371,710 | 388,131 | 16,580 | 404,711 | (19,214 | ) | (13,787 | ) | (33,001 | ) | ||||||||||||||||||||||||
Deferred tax assets non-admitted |
(189,578 | ) | (570 | ) | (190,148 | ) | (228,728 | ) | (4,145 | ) | (232,873 | ) | 39,150 | 3,575 | 42,725 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Net admitted deferred tax asset |
179,339 | 2,223 | 181,562 | 159,403 | 12,435 | 171,838 | 19,936 | (10,212 | ) | 9,724 | ||||||||||||||||||||||||||
Gross deferred tax liabilities |
(31,065 | ) | | (31,065 | ) | (22,523 | ) | | (22,523 | ) | (8,542 | ) | | (8,542 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Net admitted deferred tax asset |
$ | 148,274 | $ | 2,223 | $ | 150,497 | $ | 136,880 | $ | 12,435 | $ | 149,315 | $ | 11,394 | $ | (10,212 | ) | $ | 1,182 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company admits deferred tax assets pursuant to paragraphs 11.a, 11.b.i, 11.b.ii, and 11.c, in SSAP No. 101. The following table presents the amount of deferred tax asset admitted under each component of SSAP No. 101:
44
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
December 31, 2018 | December 31, 2017 | Change | ||||||||||||||||||||||||||||||||||
Ordinary | Capital | Total | Ordinary | Capital | Total | Ordinary | Capital | Total | ||||||||||||||||||||||||||||
(a) Federal income taxes paid in prior years recoverable through loss carrybacks |
$ | | $ | 2,224 | $ | 2,224 | $ | | $ | 3,884 | $ | 3,884 | $ | | $ | (1,660 | ) | $ | (1,660 | ) | ||||||||||||||||
(b) Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from (a) above) after application of the threshold limitation (lesser of (i) and (ii) below) |
148,274 | 148,274 | 136,880 | 8,551 | 145,431 | 11,394 | (8,551 | ) | 2,843 | |||||||||||||||||||||||||||
(i) Adjusted gross deferred tax assets expected to be realized following the balance sheet date |
148,274 | 148,274 | 136,880 | 8,551 | 145,431 | 11,394 | (8,551 | ) | 2,843 | |||||||||||||||||||||||||||
(ii) Adjusted gross deferred tax assets expected allowed per limitation threshold |
175,682 | 145,431 | | | 30,251 | |||||||||||||||||||||||||||||||
(c) Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from (a) and (b) above) offset by gross deferred tax liabilities |
31,065 | | 31,065 | 22,523 | | 22,523 | 8,542 | | 8,542 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total deferred tax assets admitted as a result of the application of SSAP No. 101 |
$ | 179,339 | $ | 2,224 | $ | 181,563 | $ | 159,403 | $ | 12,435 | $ | 171,838 | $ | 19,936 | $ | (10,211 | ) | $ | 9,725 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents the threshold limitations utilized in the admissibility of deferred tax assets under paragraph 11.b of SSAP No. 101:
2018 | 2017 | |||||||
Ratio percentage used to determine recovery period and threshold limitation amount |
867.76% | 894.97% | ||||||
Amount of adjusted capital and surplus used to determine recovery period and threshold limitation |
$ | 1,171,212 | $ | 969,537 |
The following table presents the impact of tax planning strategies:
December 31, 2018 December 31, 2017 | Change | |||||||||||||||||||||||
Ordinary | Capital | Ordinary | Capital | Ordinary | Capital | |||||||||||||||||||
Adjusted gross deferred tax asset |
$ | 368,917 | $ | 2,793 | $ | 388,131 | $ | 16,580 | $ | (19,214 | ) | $ | (13,787 | ) | ||||||||||
% of adjusted gross deferred tax asset by character attributable to tax planning strategies |
| % | | % | | % | | % | | % | | % | ||||||||||||
Net admitted adjusted gross deferred tax assets |
$ | 179,339 | $ | 2,224 | $ | 159,403 | $ | 12,435 | $ | 19,936 | $ | (10,211 | ) | |||||||||||
% of net admitted adjusted gross deferred tax asset by character attributable to tax planning strategies |
| % | | % | | % | | % | | % | | % |
The Companys tax planning strategies do not include the use of reinsurance.
There are no temporary differences for which deferred tax liabilities are not recognized.
The components of current income taxes incurred include the following:
Year Ended December 31, | ||||||||||||
2018 | 2017 | Change | ||||||||||
Current income tax |
$ | (17,604 | ) | $ | 50,584 | $ | (68,188 | ) | ||||
Federal income tax on net capital gains |
1,030 | (6,744 | ) | 7,774 | ||||||||
|
|
|
|
|
|
|
|
| ||||
Total |
$ | (16,574 | ) | $ | 43,840 | $ | (60,414 | ) | ||||
|
|
|
|
|
|
|
|
|
45
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
Year Ended December 31, | ||||||||||||
2017 | 2016 | Change | ||||||||||
Current income tax |
$ | 50,584 | $ | (37,932 | ) | $ | 88,516 | |||||
Federal income tax on net capital gains |
(6,744 | ) | 16,117 | (22,861 | ) | |||||||
|
|
|
|
|
|
|
|
| ||||
Total |
$ | 43,840 | $ | (21,815 | ) | $ | 65,655 | |||||
|
|
|
|
|
|
|
|
|
46
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
The tax effects of temporary differences, which give rise to the deferred income tax assets and liabilities are as follows:
December 31, | ||||||||||||
Deferred income tax assets: |
2018 | 2017 | Change | |||||||||
Ordinary: |
||||||||||||
Reserves |
$ | 80,303 | $ | 65,831 | $ | 14,472 | ||||||
Investments |
4,374 | 1,263 | 3,111 | |||||||||
Deferred acquisition costs |
76,759 | 77,369 | (610 | ) | ||||||||
Provision for dividends |
3,399 | 4,593 | (1,194 | ) | ||||||||
Fixed assets |
3,264 | 2,761 | 503 | |||||||||
Compensation and benefit accrual |
20,890 | 22,065 | (1,175 | ) | ||||||||
Receivables - non-admitted |
13,991 | 12,737 | 1,254 | |||||||||
Tax credit carryforward |
131,409 | 168,567 | (37,158 | ) | ||||||||
Other |
34,527 | 32,945 | 1,582 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Total ordinary gross deferred tax assets |
368,916 | 388,131 | (19,215 | ) | ||||||||
Valuation allowance adjustment |
| | | |||||||||
|
|
|
|
|
|
|
|
| ||||
Total adjusted ordinary gross deferred tax assets |
368,916 | 388,131 | (19,215 | ) | ||||||||
Non-admitted ordinary deferred tax assets |
(189,578 | ) | (228,728 | ) | 39,150 | |||||||
|
|
|
|
|
|
|
|
| ||||
Admitted ordinary deferred tax assets |
179,338 | 159,403 | 19,935 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Capital: |
| |||||||||||
Investments |
2,793 | 16,580 | (13,787 | ) | ||||||||
|
|
|
|
|
|
|
|
| ||||
Total capital gross deferred tax assets |
2,793 | 16,580 | (13,787 | ) | ||||||||
Valuation allowance adjustment |
| | | |||||||||
|
|
|
|
|
|
|
|
| ||||
Total adjusted gross capital deferred tax assets |
2,793 | 16,580 | (13,787 | ) | ||||||||
Non-admitted capital deferred tax assets |
(569 | ) | (4,145 | ) | 3,576 | |||||||
|
|
|
|
|
|
|
|
| ||||
Admitted capital deferred tax assets |
2,224 | 12,435 | (10,211 | ) | ||||||||
|
|
|
|
|
|
|
|
| ||||
Total admitted deferred tax assets |
$ | 181,562 | $ | 171,838 | $ | 9,724 | ||||||
|
|
|
|
|
|
|
|
| ||||
Deferred income tax liabilities: |
||||||||||||
Ordinary: |
||||||||||||
Investments |
$ | | $ | (4,501 | ) | $ | 4,501 | |||||
Premium receivable |
(5,417 | ) | (3,343 | ) | (2,074 | ) | ||||||
Policyholder Reserves |
(17,644 | ) | (10,033 | ) | (7,611 | ) | ||||||
Experience Refunds |
(5,079 | ) | | (5,079 | ) | |||||||
Other |
(2,925 | ) | (4,646 | ) | 1,721 | |||||||
|
|
|
|
|
|
|
|
| ||||
Total ordinary deferred tax liabilities |
(31,065 | ) | (22,523 | ) | (8,542 | ) | ||||||
|
|
|
|
|
|
|
|
| ||||
Net admitted deferred income tax asset |
$ | 150,497 | $ | 149,315 | $ | 1,182 | ||||||
|
|
|
|
|
|
|
|
|
47
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
The change in deferred income taxes reported in surplus before consideration of non-admitted assets is comprised of the following components:
December 31, |
| |||||||||||
|
2018 | 2017 | Change | |||||||||
Total deferred income tax assets |
$ | 371,710 | $ | 404,711 | $ | (33,001 | ) | |||||
Total deferred income tax liabilities |
(31,065 | ) | (22,523 | ) | (8,542 | ) | ||||||
|
|
|
|
|
|
|
|
| ||||
Net deferred income tax asset |
$ | 340,645 | $ | 382,188 | (41,543 | ) | ||||||
|
|
|
|
|
|
|||||||
Tax effect of unrealized capital gains (losses) |
(260 | ) | ||||||||||
Other surplus |
1,071 | |||||||||||
Change in net deferred income tax |
$ | (40,732 | ) | |||||||||
|
|
| ||||||||||
December 31, |
| |||||||||||
|
2017 | 2016 | Change | |||||||||
Total deferred income tax assets |
$ | 404,711 | $ | 521,431 | $ | (116,720 | ) | |||||
Total deferred income tax liabilities |
(22,523 | ) | (20,681 | ) | (1,842 | ) | ||||||
|
|
|
|
|
|
|
|
| ||||
Net deferred income tax asset |
$ | 382,188 | $ | 500,750 | (118,562 | ) | ||||||
|
|
|
|
|
|
|||||||
Tax effect of unrealized capital gains (losses) |
6,427 | |||||||||||
Other surplus |
1,607 | |||||||||||
|
|
| ||||||||||
Change in net deferred income tax |
$ | (110,528 | ) | |||||||||
|
|
|
The provision for federal income taxes and change in deferred income taxes differ from that which would be obtained by applying the statutory federal income tax rate of 21% and 35% to income before income taxes. The significant items causing this difference are as follows:
December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Income tax expense at statutory rate |
$ | 60,337 | $ | 77,023 | $ | 22,425 | ||||||
Federal tax rate change |
| 132,029 | | |||||||||
Earnings from subsidiaries |
(22,003 | ) | (28,875 | ) | (35,175 | ) | ||||||
Swap gain on debt refinancing |
8,175 | | | |||||||||
Dividend received deduction |
(6,657 | ) | (7,992 | ) | (7,302 | ) | ||||||
Tax adjustment for interest maintenance reserve |
(5,221 | ) | (7,716 | ) | (8,138 | ) | ||||||
Prior year adjustment |
(4,124 | ) | (1,881 | ) | (2,032 | ) | ||||||
Tax effect on non-admitted assets |
(3,476 | ) | 2,291 | (1,111 | ) | |||||||
Tax credits |
(2,901 | ) | (908 | ) | (21,212 | ) | ||||||
Income tax (benefit) on realized capital gain (loss) |
1,030 | (6,744 | ) | 16,117 | ||||||||
Tax contingency |
(607 | ) | 359 | (99 | ) | |||||||
Other |
(395 | ) | (3,219 | ) | (1,893 | ) | ||||||
|
|
|
|
|
|
|
|
| ||||
Total |
$ | 24,158 | $ | 154,367 | $ | (38,420 | ) | |||||
|
|
|
|
|
|
|
|
| ||||
|
|
| ||||||||||
2018 | 2017 | 2016 | ||||||||||
Federal income taxes incurred |
$ | (16,574 | ) | $ | 43,839 | $ | (21,815 | ) | ||||
Change in net deferred income taxes |
40,732 | 110,528 | (16,605 | ) | ||||||||
|
|
|
|
|
|
|
|
| ||||
Total income taxes |
$ | 24,158 | $ | 154,367 | $ | (38,420 | ) | |||||
|
|
|
|
|
|
|
|
|
On December 22, 2017, H.R. 1, the Tax Cuts and Jobs Act (the Act), was enacted. The legislation, which is generally effective for tax years beginning on January 1, 2018, represented significant U.S. tax reform and revised the Internal Revenue Code by, among other items, lowering the federal corporate income tax rate from 35% to 21% and modifying how the U.S.
48
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
taxes multinational entities. Further, the Act changed how tax basis policy reserves, capitalized specified policy acquisition expenses, and the companys share of the dividends received deduction and tax exempt interest are to be calculated.
Shortly after enactment, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (SAB 118) which provided US GAAP guidance on the accounting for the Acts impact at December 31, 2017. A reporting entity could recognize provisional amounts, where the necessary information was not available, prepared or analyzed (including computations) in reasonable detail or where additional guidance was needed from the taxing authority to determine the appropriate application of the Act. A reporting entitys provisional impact analysis was to be adjusted within the 12 month measurement period provided for under SAB 118. The Statutory Accounting Working Group subsequently provided informal interpretative guidance allowing for statutory accounting conformity with the SAB 118 US GAAP guidance.
The Companys accounting for the income tax effects of the Act is complete as of the period ended December 31, 2018, and no material measurement period adjustments were recognized during the 2018 reporting period.
As of December 31, 2018, the Company had no operating loss carryforwards.
As of December 31, 2018, the Company has Guaranteed Federal Low Income Housing tax credit carryforwards of $111,328. These credits will begin to expire in 2030.
As of December 31, 2018, the Company has foreign tax credit carryforwards of $20,082. These credits will begin to expire in 2020.
The following are income taxes incurred in prior years that will be available for recoupment in the event of future net losses:
Year Ended December 31, 2018 |
$ | 4,146 | ||
Year Ended December 31, 2017 |
13,328 |
The Company has no deposits admitted under Section 6603 of the Internal Revenue Code.
The Companys federal income tax return is consolidated with the following entities (the U.S. Consolidated Group):
Great-West Lifeco U.S. LLC
Emjay Corporation
GWFS Equities, Inc.
GWL&A Financial Inc.
Great-West Life & Annuity Insurance Company of South Carolina
Great-West Life & Annuity Insurance Company of New York
Putnam Investments, LLC
Putnam Acquisition Financing, Inc.
Putnam Retail Management, LP
Putnam Retail Management GP, Inc.
Putnam Advisory Company, LLC
Putnam Advisory Holdings, LLC
Putnam Fiduciary Trust Company
Putnam Investor Services, Inc.
PanAgora Holdings, Inc
PanAgora Asset Management, Inc.
Putnam Advisory Holdings II, LLC
FASCore, LLC
Advised Assets Group, LLC
Great-West Trust Company, LLC
Great-West Capital Management, LLC
The Company, GWL&A NY and GWSC (GWLA Subgroup) are life insurance companies who form a life subgroup under the consolidated return regulations. These regulations determine whether the taxable income or losses of this subgroup may offset or be offset with the taxable income or losses of other non-life entities.
49
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
The GWLA Subgroup accounts for income taxes on the modified separate return method on each of their separate company, statutory financial statements. Under this method, current and deferred tax expense or benefit is determined on a standalone basis; however the Company also considers taxable income or losses from other members of the GWLA Subgroup when determining its deferred tax assets and liabilities, and in evaluating the realizability of its deferred tax assets.
The method of settling income tax payables and receivables (Tax Sharing Agreement) among the U.S. consolidated group is subject to a written agreement approved by the Board of Directors, whereby settlement is made on a separate return basis (i.e., the amount that would be due to or from a jurisdiction had an actual separate return been filed) except for the current utilization of any net operating losses and other tax attributes by members of the U.S. Consolidated Group, which can lead to receiving a payment when none would be received from the jurisdiction had a real separate tax return been required. The GWLA Subgroup has a policy of settling intercompany balances as soon as practical after the filing of the federal consolidated return or receipt of the income tax refund from the Internal Revenue Service (I.R.S.).
The Company determines income tax contingencies in accordance with Statement of Statutory Accounting Principles No. 5R, Liabilities, Contingencies and Impairments of Assets (SSAP No. 5R) as modified by SSAP 101. As of December 31, 2018 the amount of tax contingencies computed in accordance with SSAP No. 5R is $0, with the exception of interest and penalties. The Company does not expect a significant increase in tax contingencies within the 12 month period following the balance sheet date.
The Company recognizes accrued interest and penalties related to tax contingencies in current income tax expense. During the years ended December 31, 2018 and 2017, the Company recognized approximately $607 and $359 of benefit and expense, respectively, from interest and penalties related to the uncertain tax positions. The Company had $314 and $921 accrued for the payment of interest and penalties at December 31, 2018 and 2017, respectively.
The Company files income tax returns in the U.S. federal jurisdiction and various states. With few exceptions, the Company is no longer subject to U.S. federal income tax examinations by the I.R.S. for years 2014 and prior. Tax years 2015 through 2017 are open to federal examination by the I.R.S. The Company does not expect significant increases or decreases to tax contingencies relating to federal, state or local audits.
The Company does not have any outstanding AMT credits as of the filing of the 2017 tax return.
The Company does not have any foreign operations as of the periods ended December 31, 2017 and December 31, 2018 and therefore is not subject to the Repatriation Transition Tax or the tax on Global Intangible Low-Taxed Income.
Post-Retirement Medical and Supplemental Executive Retirement Plans
The Company sponsors an unfunded Post-Retirement Medical Plan (the Medical Plan) that provides health benefits to retired employees who are not Medicare eligible. The Medical Plan is contributory and contains other cost sharing features which may be adjusted annually for the expected general inflation rate. The Companys policy is to fund the cost of the Medical Plan benefits in amounts determined at the discretion of management.
The Company also provides Supplemental Executive Retirement Plans to certain key executives. These plans provide key executives with certain benefits upon retirement, disability or death based upon total compensation. The Company has purchased individual life insurance policies with respect to employees covered by these plans. The Company is the owner and beneficiary of the insurance contracts.
A December 31 measurement date is used for the employee benefit plans.
50
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
The following tables provide a reconciliation of the changes in the benefit obligations, fair value of plan assets and the underfunded status for the Companys Post-Retirement Medical and Supplemental Executive Retirement plans:
Post-Retirement Medical Plan |
Supplemental Executive Retirement Plan |
Total | ||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||
Change in projected benefit obligation: |
||||||||||||||||||||||||
Benefit obligation, January 1 |
$ | 19,329 | $ | 19,031 | $ | 40,921 | $ | 44,501 | $ | 60,250 | $ | 63,532 | ||||||||||||
Service cost |
1,425 | 1,457 | | (16 | ) | 1,425 | 1,441 | |||||||||||||||||
Interest cost |
703 | 758 | 1,357 | 1,620 | 2,060 | 2,378 | ||||||||||||||||||
Actuarial (gain) loss |
(1,511 | ) | (1,216 | ) | (2,316 | ) | (1,872 | ) | (3,827 | ) | (3,088 | ) | ||||||||||||
Regular benefits paid |
(407 | ) | (701 | ) | (2,400 | ) | (3,336 | ) | (2,807 | ) | (4,037 | ) | ||||||||||||
Amendment |
| | | 24 | | 24 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Benefit obligation and under funded status, December 31 |
$ | 19,539 | $ | 19,329 | $ | 37,562 | $ | 40,921 | $ | 57,101 | $ | 60,250 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Accumulated benefit obligation |
$ | 19,539 | $ | 19,329 | $ | 37,562 | $ | 40,921 | $ | 57,101 | $ | 60,250 | ||||||||||||
Post-Retirement Medical Plan |
Supplemental Executive Retirement Plan |
Total | ||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||
Change in plan assets: |
||||||||||||||||||||||||
Value of plan assets, January 1 |
$ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||
Employer contributions |
407 | 701 | 2,400 | 3,337 | 2,807 | 4,038 | ||||||||||||||||||
Regular benefits paid |
(407 | ) | (701 | ) | (2,400 | ) | (3,337 | ) | (2,807 | ) | (4,038 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Value of plan assets, December 31 |
$ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents amounts recognized in the Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus for the Companys Post-Retirement Medical and Supplemental Executive Retirement plans:
Post-Retirement Medical Plan |
Supplemental Executive Retirement Plan |
Total | ||||||||||||||||||||||
December 31, | December 31, | December 31, | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||
Amounts recognized in the statutory statements of admitted assets, liabilities, capital and surplus: |
||||||||||||||||||||||||
Accrued benefit liability |
$ | (20,534 | ) | $ | (18,078 | ) | $ | (40,091 | ) | $ | (40,855 | ) | $ | (60,625 | ) | $ | (58,933 | ) | ||||||
Liability for pension benefits |
995 | (1,251 | ) | 2,529 | (66 | ) | 3,524 | (1,317 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total other liabilities |
$ | (19,539 | ) | $ | (19,329 | ) | $ | (37,562 | ) | $ | (40,921 | ) | $ | (57,101 | ) | $ | (60,250 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Unassigned surplus (deficit) |
$ | 995 | $ | (1,251 | ) | $ | 2,529 | $ | (66 | ) | $ | 3,524 | $ | (1,317 | ) |
51
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
The following table presents amounts not yet recognized in the statements of financial position for the Companys Post-Retirement Medical and Supplemental Executive Retirement plans:
Post-Retirement Medical Plan |
Supplemental Executive Retirement Plan |
Total | ||||||||||||||||||||||
December 31, | December 31, | December 31, | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||
Unrecognized net actuarial gain (loss) |
$ | 5,152 | $ | 3,723 | $ | 3,428 | $ | 1,157 | $ | 8,580 | $ | 4,880 | ||||||||||||
Unrecognized prior service cost |
(4,157 | ) | (4,974 | ) | (899 | ) | (1,223 | ) | (5,056 | ) | (6,197 | ) |
The following table presents amounts in unassigned funds recognized as components of net periodic benefit cost for the Companys Post-Retirement Medical and Supplemental Executive Retirement plans:
Post-Retirement Medical Plan |
Supplemental Executive Retirement Plan |
Total | ||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||
Items not yet recognized as component of net periodic cost on January 1, |
$ | (1,251 | ) | $ | (3,021 | ) | $ | (66 | ) | $ | (2,360 | ) | $ | (1,317 | ) | $ | (5,381 | ) | ||||||
Prior service cost recognized in net periodic cost |
817 | 587 | 324 | 501 | 1,141 | 1,088 | ||||||||||||||||||
(Gain) loss recognized in net periodic cost |
(82 | ) | (33 | ) | (45 | ) | (54 | ) | (127 | ) | (87 | ) | ||||||||||||
Gain (loss) arising during the year |
1,511 | 1,216 | 2,316 | 1,847 | 3,827 | 3,063 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Items not yet recognized as component of net periodic cost on December 31 |
$ | 995 | $ | (1,251 | ) | $ | 2,529 | $ | (66 | ) | $ | 3,524 | $ | (1,317 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table provides information regarding amounts in unassigned funds that are expected to be recognized as components of net periodic benefit costs during the year ended December 31, 2019:
Post-Retirement Medical Plan |
Supplemental Executive Retirement Plan |
Total | ||||||||||
Net actuarial gain |
$ | 217 | $ | 50 | $ | 267 | ||||||
Prior service cost |
(817 | ) | (300 | ) | (1,117 | ) |
The expected benefit payments for the Companys Post-Retirement Medical and Supplemental Executive Retirement plans for the years indicated are as follows:
2019 | 2020 | 2021 | 2022 | 2023 | 2024 through 2028 |
|||||||||||||||||||
Post-retirement medical plan |
$ | 961 | $ | 959 | $ | 1,054 | $ | 1,123 | $ | 1,234 | $ | 7,119 | ||||||||||||
Supplemental executive retirement plan |
2,347 | 2,530 | 2,473 | 10,206 | 5,701 | 9,085 |
52
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
The following table presents the components of net periodic cost (benefit):
Post-Retirement Medical Plan |
Supplemental Executive Retirement Plan |
Total | ||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||||
Components of net periodic cost (benefit): |
||||||||||||||||||||||||||||||||||||||||||||||
Service cost |
$ | 1,425 | $ | 1,457 | $ | 1,246 | $ | | $ | (16 | ) | $ | 294 | $ | 1,425 | $ | 1,441 | $ | 1,540 | |||||||||||||||||||||||||||
Interest cost |
703 | 758 | 713 | 1,356 | 1,620 | 1,775 | 2,059 | 2,378 | 2,488 | |||||||||||||||||||||||||||||||||||||
Amortization of unrecognized prior service cost |
817 | 587 | 150 | 324 | 501 | 501 | 1,141 | 1,088 | 651 | |||||||||||||||||||||||||||||||||||||
Amortization of gain from prior periods |
(82 | ) | (33 | ) | (137 | ) | (45 | ) | (54 | ) | (61 | ) | (127 | ) | (87 | ) | (198 | ) | ||||||||||||||||||||||||||||
Net periodic cost |
$ | 2,863 | $ | 2,769 | $ | 1,972 | $ | 1,635 | $ | 2,051 | $ | 2,509 | $ | 4,498 | $ | 4,820 | $ | 4,481 | ||||||||||||||||||||||||||||
The following tables present the assumptions used in determining benefit obligations of the Post-Retirement Medical and the Supplemental Executive Retirement plans at December 31, 2018 and 2017:
Post-Retirement Medical Plan | ||||||
December 31, | ||||||
2018 | 2017 | |||||
Discount rate |
4.34% | 3.63% | ||||
Initial health care cost trend |
6.25% | 6.50% | ||||
Ultimate health care cost trend |
5.00% | 5.00% | ||||
Year ultimate trend is reached |
2024 | 2024 | ||||
Supplemental Executive Retirement Plan | ||||||
December 31, | ||||||
2018 | 2017 | |||||
Discount rate |
4.16% | 3.43% | ||||
Rate of compensation increase |
N/A | 4.00% |
During 2018, the Company adopted the Society of Actuaries Morality Improvement Scale (MP-2018).
During 2017, the Company adopted the Society of Actuaries Morality Improvement Scale (MP-2017).
The following tables present the weighted average interest rate assumptions used in determining the net periodic benefit/cost of the Post-Retirement Medical and the Supplemental Executive Retirement plans:
Post-Retirement Medical Plan | ||||||
Year Ended December 31, | ||||||
2018 | 2017 | |||||
Discount rate |
3.63% | 4.05% | ||||
Initial health care cost trend |
6.50% | 6.75% | ||||
Ultimate health care cost trend |
5.00% | 5.00% | ||||
Year ultimate trend is reached |
2024 | 2024 |
53
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
Supplemental Executive Retirement Plan | ||||||
Year Ended December 31, | ||||||
2018 | 2017 | |||||
Discount rate |
3.43% | 3.80% | ||||
Rate of compensation increase |
4.00% | 4.00% |
The discount rate has been set based on the rates of return on high-quality fixed-income investments currently available and expected to be available during the period the benefits will be paid. In particular, the yields on bonds rated AA or better on the measurement date have been used to set the discount rate.
The following table presents the impact on the Post-Retirement Medical Plan that one-percentage-point change in assumed health care cost trend rates would have on the following:
One percentage point increase |
One percentage point decrease |
|||||||
|
|
|||||||
Increase (decrease) on total service and interest cost on components |
$ | 357 | $ | (297) | ||||
Increase (decrease) on post-retirement benefit obligations |
2,417 | (2,075) |
Beginning December 31, 2012, the Company began participation in the pension plan sponsored by GWL&A Financial. During 2017, that plan froze all future benefit accruals for pension-eligible participants as of December 31, 2017. The Companys share of net expense for the pension plan was $3,057, $0 and $0 during the years ended December 31, 2018, 2017 and 2016.
In August 2017, the Company filed an application for a compliance statement from the IRS under their Voluntary Correction Program with respect to operational matters under the pension plan. The IRS issued a compliance statement approving the Companys request in November 2018. The corrective measure will result in a payment of approximately $7 million to the plan in 2019.
The Company offers unfunded, non-qualified deferred compensation plans to a select group of executives, management and highly compensated individuals. Participants defer a portion of their compensation and realize potential market gains / losses or interest on the amount deferred. The programs are not qualified under Section 401 of the Internal Revenue Code. Participant balances, which are included in Amounts withheld or retained by company as agent or trustee in the accompanying statutory financial statements, are $35,588 and $33,454 at December 31, 2018 and 2017, respectively.
The Company sponsors a qualified defined contribution benefit plan covering all employees. Under this plan, employees may contribute a percentage of their annual compensation to the plan up to certain maximums, as defined by the plan and by the Internal Revenue Service (IRS). Currently, the Company matches a percentage of employee contributions in cash. The Company recognized $11,935, $8,713 and $7,275 in expense related to this plan for the years ended December 31, 2018, 2017 and 2016, respectively.
Equity Awards
Lifeco, of which the Company is an indirect wholly-owned subsidiary, maintains the Great-West Lifeco Inc. Stock Option Plan (the Lifeco plan) that provides for the granting of options on its common shares to certain of its officers and employees and those of its subsidiaries, including the Company. Options are granted with exercise prices not less than the average market price of the shares on the five days preceding the date of the grant. The Lifeco plan provides for the granting of options with varying terms and vesting requirements with vesting commencing on the first anniversary of the grant, exercisable within 10 years from the date of grant. Compensation expense is recognized in the Companys financial statements over the vesting period of these stock options using the accelerated method of recognition.
Termination of employment prior to the vesting of the options results in the forfeiture of the unvested options, unless otherwise determined by the Human Resources Committee. At its discretion, the Human Resources Committee may vest the unvested options of retiring option holders, with the options exercisable within five years from the date of retirement. In such event, the Company
54
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
accelerates the recognition period to the date of retirement for any unrecognized share-based compensation cost related thereto and recognizes it in its earnings at that time.
Liability Awards
The Company maintains a Performance Share Unit Plan (PSU plan) for officers and employees of the Company. Under the PSU plan, performance share units are granted to certain of its officers and employees of the Company. Each performance unit has a value equal to one share of Lifeco common stock and is subject to adjustment for cash dividends paid to Lifeco stockholders, Company earnings results as well as stock dividends and splits, consolidations and the like that affect shares of Lifeco common stock outstanding.
If the performance share units vest, they are payable in cash equal to the average closing price of Lifeco common stock for the 20 trading days prior to the date following the last day of the three-year performance period. The estimated fair value of the performance unit is based on the average closing price of Lifeco common stock for the 20 trading days prior to the grant. The performance share units generally vest in their entirety at the end of the three years performance period based on continued service. The PSU plan contains a provision that permits all unvested performance share units to become vested upon death or retirement. Changes in the fair value of the performance share units that occur during the vesting period is recognized as compensation cost over that period.
Performance share units are settled in cash and are recorded as liabilities until payout is made. Unlike share-settled awards, which have a fixed grant-date fair value, the fair value of unsettled or unvested liabilities awards is remeasured at the end of each reporting period based on the change in fair value of one share of Lifeco common stock. The liability and corresponding expense are adjusted accordingly until the award is settled.
Compensation Expense Related to Share-Based Compensation
The compensation expense related to share-based compensation was as follows:
Year Ended December 31, | ||||||||||||
|
|
|||||||||||
2018 | 2017 | 2016 | ||||||||||
|
|
|
|
|||||||||
Lifeco Stock Plan |
$ | 768 | $ | 1,451 | $ | 2,113 | ||||||
Performance Share Unit Plan |
5,388 | 7,207 | 5,318 | |||||||||
|
|
|
|
|||||||||
Total compensation expense |
$ | 6,156 | $ | 8,658 | $ | 7,431 | ||||||
|
|
|
|
|||||||||
Income tax benefits |
$ | 1,243 | $ | 2,831 | $ | 2,445 |
During the year ended December 31, 2018, 2017 and 2016, the Company had $26, $769 and $555 respectively, income tax benefits realized from stock options exercised.
The following table presents the total unrecognized compensation expense related to share-based compensation at December 31, 2018 and the expected weighted average period over which these expenses will be recognized:
Expense | Weighted average period (years) |
|||||||
|
|
|
|
|||||
Lifeco Stock Plan |
$ | 819 | 1.6 | |||||
Performance Share Unit Plan |
8,403 | 1.4 |
Equity Award Activity
During the year ended December 31, 2018, Lifeco granted 473,400 stock options to employees of the Company. These stock options vest over five-year periods ending in 2023. Compensation expense of $448 will be recognized in the Companys financial statements over the vesting period of these stock options using the accelerated method of recognition.
55
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
The following table summarizes the status of, and changes in, the Lifeco plan options granted to Company employees which are outstanding. The options granted relate to underlying stock traded in Canadian dollars on the Toronto Stock Exchange; therefore, the amounts, which are presented in United States dollars, will fluctuate as a result of exchange rate fluctuations.
Weighted average | ||||||||||||||
|
|
|||||||||||||
Shares under option |
Exercise price (Whole dollars) |
Remaining contractual term (Years) |
Aggregate intrinsic value (1) |
|||||||||||
|
|
|
|
|
|
|
||||||||
Outstanding, January 1, 2018 |
3,446,975 | $ | 24.88 | |||||||||||
Granted |
473,400 | 25.15 | ||||||||||||
Exercised |
(114,589 | ) | 21.06 | |||||||||||
Cancelled and expired |
(156,000 | ) | 24.54 | |||||||||||
|
|
|||||||||||||
Outstanding, December 31, 2018 |
3,649,786 | 23.32 | 5.9 | $ | 2,339 | |||||||||
|
|
|||||||||||||
Vested and expected to vest, December 31, 2018 |
3,649,786 | 23.32 | 5.9 | 2,144 | ||||||||||
Exercisable, December 31, 2018 |
2,323,353 | 21.95 | 4.7 | 2,144 |
(1) The aggregate intrinsic value is calculated as the difference between the market price of Lifeco common shares on December 31, 2018 and the exercise price of the option (only if the result is positive) multiplied by the number of options.
The following table presents additional information regarding stock options under the Lifeco plan:
Year Ended December 31, | ||||||||||||
|
|
|||||||||||
2018 | 2017 | 2016 | ||||||||||
|
|
|
|
|
|
|||||||
Weighted average fair value of options granted |
$ | 0.95 | $ | 2.75 | $ | 2.74 | ||||||
Intrinsic value of options exercised (1) |
345 | 2,869 | 2,102 | |||||||||
Fair value of options vested |
1,115 | 2,203 | 1,605 |
(1) The intrinsic value of options exercised is calculated as the difference between the market price of Lifeco common shares on the date of exercise and the exercise price of the option multiplied by the number of options exercised.
The fair value of the options granted during the years ended December 31, 2018, 2017 and 2016 was estimated on the date of the grant using the Black-Scholes option-pricing model with the following weighted average assumptions:
Year Ended December 31, | ||||||||||||
|
|
|||||||||||
2018 | 2017 | 2016 | ||||||||||
|
|
|
|
|
|
|||||||
Dividend yield |
4.55 | % | 3.98 | % | 3.99 | % | ||||||
Expected volatility |
9.01 | % | 13.99 | % | 19.03 | % | ||||||
Risk free interest rate |
2.03 | % | 1.25 | % | 0.80 | % | ||||||
Expected duration (years) |
6.0 | 6.0 | 6.0 |
Liability Award Activity
The following table summarizes the status of, and changes in, the Performance Share Unit Plan units granted to Company employees which are outstanding:
Performance Units | ||||
|
|
| ||
Outstanding, January 1, 2018 |
681,510 | |||
Granted |
405,464 | |||
Forfeited |
(18,397 | ) | ||
Paid |
(157,510 | ) | ||
|
|
| ||
Outstanding, December 31, 2018 |
911,067 | |||
|
|
| ||
Vested and expected to vest, December 31, 2018 |
911,067 |
56
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
The cash payment in settlement of the Performance Share Unit Plan units was $4,104, $3,398 and $3,988 for the years ended December 31, 2018, 2017 and 2016, respectively.
57
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
Individual life insurance premiums paid, net of reinsurance, under individual life insurance participating policies were 1%, 6%, and (2)% of total individual life insurance premiums earned during the years ended December 31, 2018, 2017 and 2016 respectively. The Company accounts for its policyholder dividends based upon the three-factor formula. The Company paid dividends in the amount of $31,276, $38,782 and $45,842 to its policyholders during the years ended December 31, 2018, 2017 and 2016, respectively.
No customer accounted for 10% or more of the Companys revenues during the year ended December 31, 2018. In addition, neither Individual Markets nor Empower Retirement is dependent upon a single customer or a few customers. The loss of business from any one, or a few, independent brokers or agents would not have a material adverse effect on the Company or any of its business agents.
20. Commitments and Contingencies
Future Contractual Obligations
The following table summarizes the Companys estimated future contractual obligations:
Payment due by period | ||||||||||||||||||||||||||||
|
2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | |||||||||||||||||||||
Surplus notes - principal (1) |
$ | | $ | | $ | | $ | | $ | | $ | 553,219 | $ | 553,219 | ||||||||||||||
Surplus notes - interest (2) |
30,335 | 30,335 | 30,335 | 30,335 | 30,335 | 557,094 | 708,769 | |||||||||||||||||||||
Investment purchase obligations (3) |
136,396 | | | | | | 136,396 | |||||||||||||||||||||
Operating leases (4) |
9,929 | 7,844 | 3,717 | 1,235 | 1,037 | 11,743 | 35,505 | |||||||||||||||||||||
Other liabilities (5) |
23,334 | 26,774 | 12,695 | 19,579 | 6,935 | 16,204 | 105,521 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Total |
$ | 199,994 | $ | 64,953 | $ | 46,747 | $ | 51,149 | $ | 38,307 | $ | 1,138,260 | $ | 1,539,410 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Surplus notes principal - Represents contractual maturities of principal due to the Companys parent, GWL&A Financial, under the terms of three long-term surplus notes. The amounts shown in this table differ from the amounts included in the Companys Statement of Admitted Assets, Liabilities, Capital and Surplus because the amounts shown above do not consider the discount upon the issuance of one of the surplus notes.
(2) Surplus notes interest - One long-term surplus note bears interest at a fixed rate through maturity. The second surplus note bore interest initially at a fixed rate but changed during 2016 to be based upon the current three-month London Interbank Offering Rate in addition to a spread. The third long-term surplus note bears interest at a fixed rate through maturity. The interest payments shown in this table are calculated based upon the contractual rates in effect on December 31, 2018 and do not consider the impact of future interest rate changes.
(3) Investment purchase obligations - The Company makes commitments to fund partnership interests, mortgage loans, and other investments in the normal course of its business. As the timing of the fulfillment of the commitment to fund partnership interests cannot be predicted, such obligations are presented in the less than one year category. The timing of the funding of mortgage loans is based on the expiration date of the commitment. The amounts of these unfunded commitments at December 31, 2018 and 2017 were $136,396 and $313,242, of which $104,286 and $114,726 were related to cost basis limited partnership interests, respectively. All unfunded commitments at December 31, 2018 were due within one year. At December 31, 2017, $312,152 is due within one year, and $1,090 is due within one to three years.
(4) Operating leases - The Company is obligated to make payments under various non-cancelable operating leases, primarily for office space. Contractual provisions exist that could increase the lease obligations presented, including operating expense escalation clauses. Management does not consider the impact of any such clauses to be material to the Companys operating lease obligations. Rent expense for the years ended December 31, 2018, 2017 and 2016 were $27,768, $28,244 and $27,815 respectively.
58
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
From time to time, the Company enters into agreements or contracts, including capital leases, to purchase goods or services in the normal course of its business. However, these agreements and contracts are not material and are excluded from the table above.
(5) Other liabilities - Other liabilities include those other liabilities which represent contractual obligations not included elsewhere in the table above. If the timing of the payment of any other liabilities was sufficiently uncertain, the amounts were included in the less than one year category. Other liabilities presented in the table above include:
| Expected benefit payments for the Companys post-retirement medical plan and supplemental executive retirement plan through 2027 |
| Unrecognized tax benefits |
| Miscellaneous purchase obligations to acquire goods and services |
The Company has a revolving credit facility agreement in the amount of $50,000 for general corporate purposes. The credit facility expired on March 1, 2018 and was replaced with a revolving credit facility agreement in the amount of $50,000 with an expiration date of March 1, 2023. Interest accrues at a rate dependent on various conditions and terms of borrowings. The agreement requires, among other things, the Company to maintain a minimum adjusted net worth, of $1,022,680, as defined in the credit facility agreement (compiled on the unconsolidated statutory accounting basis prescribed by the NAIC), at any time. The Company was in compliance with all covenants at December 31, 2018 and 2017. At December 31, 2018 and 2017 there were no outstanding amounts related to the current and prior credit facilities.
In addition, the Company has other letters of credit with a total amount of $9,095, renewable annually for an indefinite period of time. At December 31, 2018 and 2017, there were no outstanding amounts related to those letters of credit.
Contingencies
From time to time, the Company may be threatened with, or named as a defendant in, lawsuits, arbitrations, and administrative claims. Any such claims that are decided against the Company could harm the Companys business. The Company is also subject to periodic regulatory audits and inspections which could result in fines or other disciplinary actions. Unfavorable outcomes in such matters may result in a material impact on the Companys financial position, results of operations, or cash flows.
The Company is defending lawsuits relating to the costs and features of certain of its retirement or fund products. Management believes the claims are without merit and will defend these actions. Based on the information known, these actions will not have a material adverse effect on the financial position of the Company.
The Company is involved in other various legal proceedings that arise in the ordinary course of its business. In the opinion of management, after consultation with counsel, the likelihood of loss from the resolution of these proceedings is remote and/or the estimated loss is not expected to have a material effect on the Companys financial position, results of its operations, or cash flows.
The Company and GWL&A NY have an agreement whereby the Company has committed to provide financial support to GWL&A NY related to the maintenance of adequate regulatory surplus and liquidity. The Company is obligated to invest in shares of GWL&A NY in order for GWL&A NY to maintain the capital and surplus at the greater of 1) $6,000, 2) 200% of GWL&A NY RBC minimum capital requirements if GWL&A NY total assets are less than $3,000,000 or 3) 175% of GWL&A NY RBC minimum capital requirements if GWL&A NY total assets are $3,000,000 or more. There is no limitation on the maximum potential future payments under the guarantee. The Company has no liability at December 31, 2018 and 2017 for obligations under the guarantee.
Management has evaluated subsequent events for potential recognition or disclosure in the Companys statutory financial statements through March 12, 2019, the date on which they were issued.
On January 24, 2019, the Company announced that it had entered into an agreement with Protective Life Insurance Company (Protective) to sell, via indemnity reinsurance, substantially all of its non-participating individual life insurance and annuity
59
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Notes to Statutory Financial Statements
(In Thousands, Except Share Amounts)
business and group life and health business. The transaction is in its initial stage, and is expected to close in the first half of 2019 subject to regulatory and customary closing conditions. On the closing date of the proposed transaction, the Company will transfer to Protective assets equal to the statutory liabilities being reinsured and will receive a ceding commission (subject to post-closing adjustments) from Protective in consideration of the transferred business.
60
COLI VUL-2 Series Account
of Great-West Life & Annuity
Insurance Company
Annual Statement for the Year Ended
December 31, 2018 and Report of Independent
Registered Public Accounting Firm
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||||
ALGER SMALL CAP GROWTH PORTFOLIO |
AMERICAN CENTURY INVESTMENTS VP CAPITAL APPRECIATION FUND |
AMERICAN CENTURY INVESTMENTS VP INCOME & GROWTH FUND |
AMERICAN CENTURY INVESTMENTS VP INFLATION PROTECTION FUND |
AMERICAN CENTURY INVESTMENTS VP INTERNATIONAL FUND |
AMERICAN CENTURY INVESTMENTS VP VALUE FUND | |||||||||||||||||||||||||||||||||
ASSETS: |
||||||||||||||||||||||||||||||||||||||
Investments at fair value (1) |
$ | 455,483 | $ | 173,675 | $ | 21 | $ | 644,013 | $ | 51,535 | $ | 844,297 | ||||||||||||||||||||||||||
Investment income due and accrued |
||||||||||||||||||||||||||||||||||||||
Receivable for investments sold |
||||||||||||||||||||||||||||||||||||||
Purchase payments receivable |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total assets |
455,483 | 173,675 | 21 | 644,013 | 51,535 | 844,297 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
LIABILITIES: |
||||||||||||||||||||||||||||||||||||||
Payable for investments purchased |
||||||||||||||||||||||||||||||||||||||
Redemptions payable |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total liabilities |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS |
$ | 455,483 | $ | 173,675 | $ | 21 | $ | 644,013 | $ | 51,535 | $ | 844,297 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS REPRESENTED BY: |
||||||||||||||||||||||||||||||||||||||
Accumulation units |
$ | 455,483 | $ | 173,675 | $ | 21 | $ | 644,013 | $ | 51,535 | $ | 844,297 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
ACCUMULATION UNITS OUTSTANDING |
2,751 | 13,113 | 1 | 63,575 | 4,207 | 21,181 | ||||||||||||||||||||||||||||||||
UNIT VALUE (ACCUMULATION) |
$ | 165.57 | $ | 13.24 | $ | 21.00 | $ | 10.13 | $ | 12.25 | $ | 39.86 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
(1) Cost of investments: |
$ | 435,609 | $ | 188,984 | $ | 23 | $ | 677,016 | $ | 54,583 | $ | 863,344 | ||||||||||||||||||||||||||
Shares of investments: |
19,440 | 12,257 | 2 | 66,806 | 5,402 | 84,345 |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||||
AMERICAN FUNDS IS GLOBAL SMALL CAPITALIZATION FUND |
AMERICAN FUNDS IS GROWTH FUND |
AMERICAN FUNDS IS INTERNATIONAL FUND |
AMERICAN FUNDS IS NEW WORLD FUND |
BLACKROCK GLOBAL ALLOCATION VI FUND |
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO | |||||||||||||||||||||||||||||||||
ASSETS: |
||||||||||||||||||||||||||||||||||||||
Investments at fair value (1) |
$ | 125,634 | $ | 2,394,145 | $ | 1,468,841 | $ | 1,567,789 | $ | 20,904 | $ | 47,544 | ||||||||||||||||||||||||||
Investment income due and accrued |
||||||||||||||||||||||||||||||||||||||
Receivable for investments sold |
||||||||||||||||||||||||||||||||||||||
Purchase payments receivable |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total assets |
125,634 | 2,394,145 | 1,468,841 | 1,567,789 | 20,904 | 47,544 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
LIABILITIES: |
||||||||||||||||||||||||||||||||||||||
Payable for investments purchased |
||||||||||||||||||||||||||||||||||||||
Redemptions payable |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total liabilities |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS |
$ | 125,634 | $ | 2,394,145 | $ | 1,468,841 | $ | 1,567,789 | $ | 20,904 | $ | 47,544 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS REPRESENTED BY: |
||||||||||||||||||||||||||||||||||||||
Accumulation units |
$ | 125,634 | $ | 2,394,145 | $ | 1,468,841 | $ | 1,567,789 | $ | 20,904 | $ | 47,544 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
ACCUMULATION UNITS OUTSTANDING |
8,765 | 97,951 | 117,101 | 79,891 | 1,916 | 4,336 | ||||||||||||||||||||||||||||||||
UNIT VALUE (ACCUMULATION) |
$ | 14.33 | $ | 24.44 | $ | 12.54 | $ | 19.62 | $ | 10.91 | $ | 10.96 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
(1) Cost of investments: |
$ | 149,171 | $ | 2,450,622 | $ | 1,567,954 | $ | 1,663,612 | $ | 23,478 | $ | 55,243 | ||||||||||||||||||||||||||
Shares of investments: |
5,937 | 34,458 | 83,457 | 75,411 | 1,376 | 2,755 |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||||
CLEARBRIDGE VARIABLE SMALL CAP GROWTH PORTFOLIO |
COLUMBIA VARIABLE PORTFOLIO- SMALL CAP VALUE FUND |
DAVIS FINANCIAL PORTFOLIO |
DAVIS VALUE PORTFOLIO |
DELAWARE VIP INTERNATIONAL VALUE EQUITY SERIES |
DELAWARE VIP SMALL CAP VALUE SERIES | |||||||||||||||||||||||||||||||||
ASSETS: |
||||||||||||||||||||||||||||||||||||||
Investments at fair value (1) |
$ | 52,591 | $ | 56,374 | $ | 40,784 | $ | 98,420 | $ | 78 | $ | 31,720 | ||||||||||||||||||||||||||
Investment income due and accrued |
||||||||||||||||||||||||||||||||||||||
Receivable for investments sold |
||||||||||||||||||||||||||||||||||||||
Purchase payments receivable |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total assets |
52,591 | 56,374 | 40,784 | 98,420 | 78 | 31,720 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
LIABILITIES: |
||||||||||||||||||||||||||||||||||||||
Payable for investments purchased |
||||||||||||||||||||||||||||||||||||||
Redemptions payable |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total liabilities |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS |
$ | 52,591 | $ | 56,374 | $ | 40,784 | $ | 98,420 | $ | 78 | $ | 31,720 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS REPRESENTED BY: |
||||||||||||||||||||||||||||||||||||||
Accumulation units |
$ | 52,591 | $ | 56,374 | $ | 40,784 | $ | 98,420 | $ | 78 | $ | 31,720 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
ACCUMULATION UNITS OUTSTANDING |
3,611 | 2,086 | 1,864 | 4,515 | 7 | 2,671 | ||||||||||||||||||||||||||||||||
UNIT VALUE (ACCUMULATION) |
$ | 14.56 | $ | 27.02 | $ | 21.88 | $ | 21.80 | $ | 11.14 | $ | 11.88 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
(1) Cost of investments: |
$ | 54,673 | $ | 75,117 | $ | 50,249 | $ | 127,168 | $ | 93 | $ | 39,130 | ||||||||||||||||||||||||||
Shares of investments: |
2,202 | 3,964 | 3,531 | 14,284 | 7 | 974 |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||||
DREYFUS STOCK INDEX FUND |
DREYFUS VIF INTERNATIONAL EQUITY PORTFOLIO |
DWS CROCI® U.S. VIP |
DWS HIGH INCOME VIP |
DWS SMALL CAP INDEX VIP |
DWS SMALL MID CAP VALUE VIP | |||||||||||||||||||||||||||||||||
ASSETS: |
||||||||||||||||||||||||||||||||||||||
Investments at fair value (1) |
$ | 24,867,692 | $ | 52,041 | $ | 281,480 | $ | 65,029 | $ | 5,912,937 | $ | 1,556,394 | ||||||||||||||||||||||||||
Investment income due and accrued |
119,312 | |||||||||||||||||||||||||||||||||||||
Receivable for investments sold |
24 | |||||||||||||||||||||||||||||||||||||
Purchase payments receivable |
26 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total assets |
24,987,028 | 52,041 | 281,480 | 65,029 | 5,912,963 | 1,556,394 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
LIABILITIES: |
||||||||||||||||||||||||||||||||||||||
Payable for investments purchased |
26 | |||||||||||||||||||||||||||||||||||||
Redemptions payable |
24 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total liabilities |
24 | 0 | 0 | 0 | 26 | 0 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS |
$ | 24,987,004 | $ | 52,041 | $ | 281,480 | $ | 65,029 | $ | 5,912,937 | $ | 1,556,394 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS REPRESENTED BY: |
||||||||||||||||||||||||||||||||||||||
Accumulation units |
$ | 24,987,004 | $ | 52,041 | $ | 281,480 | $ | 65,029 | $ | 5,912,937 | $ | 1,556,394 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
ACCUMULATION UNITS OUTSTANDING |
1,060,105 | 2,586 | 19,497 | 3,631 | 272,250 | 70,013 | ||||||||||||||||||||||||||||||||
UNIT VALUE (ACCUMULATION) |
$ | 23.57 | $ | 20.12 | $ | 14.44 | $ | 17.91 | $ | 21.72 | $ | 22.23 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
(1) Cost of investments: |
$ | 21,036,424 | $ | 59,235 | $ | 297,163 | $ | 70,607 | $ | 6,530,643 | $ | 1,988,821 | ||||||||||||||||||||||||||
Shares of investments: |
507,711 | 2,945 | 20,912 | 11,389 | 394,986 | 127,469 |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||||
FEDERATED KAUFMANN FUND II |
FIDELITY VIP CONTRAFUND PORTFOLIO |
FIDELITY VIP GROWTH PORTFOLIO |
FIDELITY VIP INVESTMENT GRADE BOND PORTFOLIO |
FIDELITY VIP MID CAP PORTFOLIO |
GOLDMAN SACHS VIT MID CAP VALUE FUND | |||||||||||||||||||||||||||||||||
ASSETS: |
||||||||||||||||||||||||||||||||||||||
Investments at fair value (1) |
$ | 144,338 | $ | 2,660,248 | $ | 738,672 | $ | 280,461 | $ | 885,128 | $ | 44,837 | ||||||||||||||||||||||||||
Investment income due and accrued |
||||||||||||||||||||||||||||||||||||||
Receivable for investments sold |
||||||||||||||||||||||||||||||||||||||
Purchase payments receivable |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total assets |
144,338 | 2,660,248 | 738,672 | 280,461 | 885,128 | 44,837 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
LIABILITIES: |
||||||||||||||||||||||||||||||||||||||
Payable for investments purchased |
||||||||||||||||||||||||||||||||||||||
Redemptions payable |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total liabilities |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS |
$ | 144,338 | $ | 2,660,248 | $ | 738,672 | $ | 280,461 | $ | 885,128 | $ | 44,837 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS REPRESENTED BY: |
||||||||||||||||||||||||||||||||||||||
Accumulation units |
$ | 144,338 | $ | 2,660,248 | $ | 738,672 | $ | 280,461 | $ | 885,128 | $ | 44,837 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
ACCUMULATION UNITS OUTSTANDING |
5,416 | 81,166 | 31,857 | 13,019 | 18,847 | 3,270 | ||||||||||||||||||||||||||||||||
UNIT VALUE (ACCUMULATION) |
$ | 26.65 | $ | 32.78 | $ | 23.19 | $ | 21.54 | $ | 46.96 | $ | 13.71 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
(1) Cost of investments: |
$ | 139,944 | $ | 2,863,897 | $ | 731,469 | $ | 289,441 | $ | 1,008,741 | $ | 57,915 | ||||||||||||||||||||||||||
Shares of investments: |
7,781 | 84,965 | 11,931 | 23,313 | 30,292 | 3,478 |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||||
GREAT-WEST AGGRESSIVE PROFILE FUND |
GREAT-WEST ARIEL MID CAP VALUE FUND |
GREAT-WEST BOND INDEX FUND |
GREAT-WEST CONSERVATIVE PROFILE FUND |
GREAT-WEST CORE BOND FUND |
GREAT-WEST EMERGING MARKETS EQUITY FUND | |||||||||||||||||||||||||||||||||
ASSETS: |
||||||||||||||||||||||||||||||||||||||
Investments at fair value (1) |
$ | 1,083,583 | $ | 196,813 | $ | 1,975,994 | $ | 792,267 | $ | 2,394,461 | $ | 2,085 | ||||||||||||||||||||||||||
Investment income due and accrued |
||||||||||||||||||||||||||||||||||||||
Receivable for investments sold |
||||||||||||||||||||||||||||||||||||||
Purchase payments receivable |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total assets |
1,083,583 | 196,813 | 1,975,994 | 792,267 | 2,394,461 | 2,085 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
LIABILITIES: |
||||||||||||||||||||||||||||||||||||||
Payable for investments purchased |
||||||||||||||||||||||||||||||||||||||
Redemptions payable |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total liabilities |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS |
$ | 1,083,583 | $ | 196,813 | $ | 1,975,994 | $ | 792,267 | $ | 2,394,461 | $ | 2,085 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS REPRESENTED BY: |
||||||||||||||||||||||||||||||||||||||
Accumulation units |
$ | 1,083,583 | $ | 196,813 | $ | 1,975,994 | $ | 792,267 | $ | 2,394,461 | $ | 2,085 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
ACCUMULATION UNITS OUTSTANDING |
107,222 | 4,397 | 138,949 | 78,473 | 166,396 | 253 | ||||||||||||||||||||||||||||||||
UNIT VALUE (ACCUMULATION) |
$ | 10.11 | $ | 44.76 | $ | 14.22 | $ | 10.10 | $ | 14.39 | $ | 8.24 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
(1) Cost of investments: |
$ | 1,369,812 | $ | 225,694 | $ | 2,010,201 | $ | 817,951 | $ | 2,507,889 | $ | 2,053 | ||||||||||||||||||||||||||
Shares of investments: |
195,240 | 133,886 | 145,615 | 105,777 | 231,349 | 268 |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||||
GREAT-WEST GLOBAL BOND FUND |
GREAT-WEST GOVERNMENT MONEY MARKET FUND |
GREAT-WEST INTERNATIONAL INDEX FUND |
GREAT-WEST INTERNATIONAL VALUE FUND |
GREAT-WEST LARGE CAP GROWTH FUND |
GREAT-WEST LIFETIME 2015 FUND | |||||||||||||||||||||||||||||||||
ASSETS: |
||||||||||||||||||||||||||||||||||||||
Investments at fair value (1) |
$ | 4,772,828 | $ | 8,690,776 | $ | 54,164 | $ | 5,064,402 | $ | 207,050 | $ | 1,646,998 | ||||||||||||||||||||||||||
Investment income due and accrued |
1,397 | |||||||||||||||||||||||||||||||||||||
Receivable for investments sold |
||||||||||||||||||||||||||||||||||||||
Purchase payments receivable |
14 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total assets |
4,772,828 | 8,692,187 | 54,164 | 5,064,402 | 207,050 | 1,646,998 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
LIABILITIES: |
||||||||||||||||||||||||||||||||||||||
Payable for investments purchased |
14 | |||||||||||||||||||||||||||||||||||||
Redemptions payable |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total liabilities |
0 | 14 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS |
$ | 4,772,828 | $ | 8,692,173 | $ | 54,164 | $ | 5,064,402 | $ | 207,050 | $ | 1,646,998 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS REPRESENTED BY: |
||||||||||||||||||||||||||||||||||||||
Accumulation units |
$ | 4,772,828 | $ | 8,692,173 | $ | 54,164 | $ | 5,064,402 | $ | 207,050 | $ | 1,646,998 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
ACCUMULATION UNITS OUTSTANDING |
336,028 | 656,196 | 4,857 | 435,820 | 6,566 | 148,678 | ||||||||||||||||||||||||||||||||
UNIT VALUE (ACCUMULATION) |
$ | 14.20 | $ | 13.25 | $ | 11.15 | $ | 11.62 | $ | 31.53 | $ | 11.08 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
(1) Cost of investments: |
$ | 5,246,267 | $ | 8,690,776 | $ | 56,898 | $ | 6,435,625 | $ | 240,380 | $ | 1,823,952 | ||||||||||||||||||||||||||
Shares of investments: |
591,429 | 8,690,776 | 5,368 | 539,340 | 25,189 | 129,481 |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2018
INVESTMENT DIVISIONS |
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GREAT-WEST LIFETIME 2020 FUND |
GREAT-WEST LIFETIME 2025 FUND |
GREAT-WEST LIFETIME 2030 FUND |
GREAT-WEST LIFETIME 2035 FUND |
GREAT-WEST LIFETIME 2040 FUND |
GREAT-WEST LIFETIME 2045 FUND | |||||||||||||||||||||||||||||||||
ASSETS: |
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Investments at fair value (1) |
$ | 443,605 | $ | 2,159,380 | $ | 1,210,928 | $ | 1,549,084 | $ | 579,839 | $ | 485,706 | ||||||||||||||||||||||||||
Investment income due and accrued |
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Receivable for investments sold |
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Purchase payments receivable |
8 | |||||||||||||||||||||||||||||||||||||
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Total assets |
443,605 | 2,159,380 | 1,210,928 | 1,549,084 | 579,847 | 485,706 | ||||||||||||||||||||||||||||||||
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LIABILITIES: |
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Payable for investments purchased |
8 | |||||||||||||||||||||||||||||||||||||
Redemptions payable |
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Total liabilities |
0 | 0 | 0 | 0 | 8 | 0 | ||||||||||||||||||||||||||||||||
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NET ASSETS |
$ | 443,605 | $ | 2,159,380 | $ | 1,210,928 | $ | 1,549,084 | $ | 579,839 | $ | 485,706 | ||||||||||||||||||||||||||
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NET ASSETS REPRESENTED BY: |
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Accumulation units |
$ | 443,605 | $ | 2,159,380 | $ | 1,210,928 | $ | 1,549,084 | $ | 579,839 | $ | 485,706 | ||||||||||||||||||||||||||
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ACCUMULATION UNITS OUTSTANDING |
39,591 | 191,021 | 105,326 | 134,062 | 49,646 | 41,863 | ||||||||||||||||||||||||||||||||
UNIT VALUE (ACCUMULATION) |
$ | 11.20 | $ | 11.30 | $ | 11.50 | $ | 11.55 | $ | 11.68 | $ | 11.60 | ||||||||||||||||||||||||||
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(1) Cost of investments: |
$ | 501,174 | $ | 2,410,389 | $ | 1,355,992 | $ | 1,836,373 | $ | 678,173 | $ | 567,697 | ||||||||||||||||||||||||||
Shares of investments: |
44,361 | 163,713 | 119,539 | 121,783 | 58,510 | 38,579 |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2018
INVESTMENT DIVISIONS |
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GREAT-WEST LIFETIME 2050 FUND |
GREAT-WEST LIFETIME 2055 FUND |
GREAT-WEST LOOMIS SAYLES SMALL CAP VALUE FUND |
GREAT-WEST MID CAP VALUE FUND |
GREAT-WEST MODERATE PROFILE FUND |
GREAT-WEST MODERATELY AGGRESSIVE PROFILE FUND | |||||||||||||||||||||||||||||||||
ASSETS: |
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Investments at fair value (1) |
$ | 228,159 | $ | 172,961 | $ | 755,793 | $ | 81,373 | $ | 283,209 | $ | 77,197 | ||||||||||||||||||||||||||
Investment income due and accrued |
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Receivable for investments sold |
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Purchase payments receivable |
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Total assets |
228,159 | 172,961 | 755,793 | 81,373 | 283,209 | 77,197 | ||||||||||||||||||||||||||||||||
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LIABILITIES: |
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Payable for investments purchased |
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Redemptions payable |
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Total liabilities |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
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NET ASSETS |
$ | 228,159 | $ | 172,961 | $ | 755,793 | $ | 81,373 | $ | 283,209 | $ | 77,197 | ||||||||||||||||||||||||||
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NET ASSETS REPRESENTED BY: |
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Accumulation units |
$ | 228,159 | $ | 172,961 | $ | 755,793 | $ | 81,373 | $ | 283,209 | $ | 77,197 | ||||||||||||||||||||||||||
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ACCUMULATION UNITS OUTSTANDING |
19,520 | 14,937 | 21,531 | 7,024 | 27,995 | 7,633 | ||||||||||||||||||||||||||||||||
UNIT VALUE (ACCUMULATION) |
$ | 11.69 | $ | 11.58 | $ | 35.10 | $ | 11.58 | $ | 10.12 | $ | 10.11 | ||||||||||||||||||||||||||
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(1) Cost of investments: |
$ | 253,717 | $ | 192,326 | $ | 847,945 | $ | 98,654 | $ | 328,301 | $ | 92,253 | ||||||||||||||||||||||||||
Shares of investments: |
22,368 | 11,417 | 33,222 | 7,779 | 45,605 | 11,123 |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2018
INVESTMENT DIVISIONS |
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GREAT-WEST MODERATELY CONSERVATIVE PROFILE FUND |
GREAT-WEST MULTI-SECTOR BOND FUND |
GREAT-WEST REAL ESTATE INDEX FUND |
GREAT-WEST S&P MID CAP 400® INDEX FUND |
GREAT-WEST S&P SMALL CAP 600® INDEX FUND |
GREAT-WEST SHORT DURATION BOND FUND | |||||||||||||||||||||||||||||||||
ASSETS: |
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Investments at fair value (1) |
$ | 87,352 | $ | 506,881 | $ | 194,734 | $ | 1,387,673 | $ | 14,078 | $ | 7,645,234 | ||||||||||||||||||||||||||
Investment income due and accrued |
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Receivable for investments sold |
27 | |||||||||||||||||||||||||||||||||||||
Purchase payments receivable |
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Total assets |
87,352 | 506,881 | 194,734 | 1,387,700 | 14,078 | 7,645,234 | ||||||||||||||||||||||||||||||||
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LIABILITIES: |
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Payable for investments purchased |
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Redemptions payable |
27 | |||||||||||||||||||||||||||||||||||||
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Total liabilities |
0 | 0 | 0 | 27 | 0 | 0 | ||||||||||||||||||||||||||||||||
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NET ASSETS |
$ | 87,352 | $ | 506,881 | $ | 194,734 | $ | 1,387,673 | $ | 14,078 | $ | 7,645,234 | ||||||||||||||||||||||||||
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NET ASSETS REPRESENTED BY: |
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Accumulation units |
$ | 87,352 | $ | 506,881 | $ | 194,734 | $ | 1,387,673 | $ | 14,078 | $ | 7,645,234 | ||||||||||||||||||||||||||
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ACCUMULATION UNITS OUTSTANDING |
8,645 | 13,336 | 15,574 | 89,851 | 1,090 | 542,209 | ||||||||||||||||||||||||||||||||
UNIT VALUE (ACCUMULATION) |
$ | 10.10 | $ | 38.01 | $ | 12.50 | $ | 15.44 | $ | 12.92 | $ | 14.10 | ||||||||||||||||||||||||||
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(1) Cost of investments: |
$ | 98,237 | $ | 521,343 | $ | 214,386 | $ | 1,631,481 | $ | 14,796 | $ | 7,761,047 | ||||||||||||||||||||||||||
Shares of investments: |
11,085 | 40,165 | 18,234 | 100,775 | 1,305 | 750,268 |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2018
INVESTMENT DIVISIONS |
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GREAT-WEST T. ROWE PRICE EQUITY INCOME FUND |
GREAT-WEST T. ROWE PRICE MID CAP GROWTH FUND |
GREAT-WEST U.S. GOVERNMENT SECURITIES FUND |
INVESCO V.I. CORE EQUITY FUND |
INVESCO V.I. GLOBAL REAL ESTATE FUND |
INVESCO V.I. HEALTH CARE FUND | |||||||||||||||||||||||||||||||||
ASSETS: |
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Investments at fair value (1) |
$ | 1,624,599 | $ | 3,762,974 | $ | 2,963,805 | $ | 19,388 | $ | 1,471,044 | $ | 81,105 | ||||||||||||||||||||||||||
Investment income due and accrued |
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Receivable for investments sold |
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Purchase payments receivable |
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Total assets |
1,624,599 | 3,762,974 | 2,963,805 | 19,388 | 1,471,044 | 81,105 | ||||||||||||||||||||||||||||||||
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LIABILITIES: |
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Payable for investments purchased |
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Redemptions payable |
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Total liabilities |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
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NET ASSETS |
$ | 1,624,599 | $ | 3,762,974 | $ | 2,963,805 | $ | 19,388 | $ | 1,471,044 | $ | 81,105 | ||||||||||||||||||||||||||
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NET ASSETS REPRESENTED BY: |
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Accumulation units |
$ | 1,624,599 | $ | 3,762,974 | $ | 2,963,805 | $ | 19,388 | $ | 1,471,044 | $ | 81,105 | ||||||||||||||||||||||||||
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ACCUMULATION UNITS OUTSTANDING |
60,750 | 88,693 | 133,853 | 908 | 39,828 | 2,639 | ||||||||||||||||||||||||||||||||
UNIT VALUE (ACCUMULATION) |
$ | 26.74 | $ | 42.43 | $ | 22.14 | $ | 21.35 | $ | 36.93 | $ | 30.73 | ||||||||||||||||||||||||||
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(1) Cost of investments: |
$ | 1,701,806 | $ | 3,832,400 | $ | 3,062,630 | $ | 22,716 | $ | 1,553,570 | $ | 89,941 | ||||||||||||||||||||||||||
Shares of investments: |
90,406 | 156,791 | 251,596 | 627 | 94,784 | 3,465 |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2018
INVESTMENT DIVISIONS |
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INVESCO V.I. INTERNATIONAL GROWTH FUND |
INVESCO V.I. MID CAP CORE EQUITY FUND |
INVESCO V.I. TECHNOLOGY FUND |
JANUS HENDERSON VIT BALANCED PORTFOLIO |
JANUS HENDERSON VIT FLEXIBLE BOND PORTFOLIO |
JANUS HENDERSON VIT FORTY PORTFOLIO | |||||||||||||||||||||||||||||||||
ASSETS: |
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Investments at fair value (1) |
$ | 3,100,458 | $ | 196,181 | $ | 129,460 | $ | 2,200,424 | $ | 1,804,920 | $ | 2,256,775 | ||||||||||||||||||||||||||
Investment income due and accrued |
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Receivable for investments sold |
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Purchase payments receivable |
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Total assets |
3,100,458 | 196,181 | 129,460 | 2,200,424 | 1,804,920 | 2,256,775 | ||||||||||||||||||||||||||||||||
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LIABILITIES: |
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Payable for investments purchased |
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Redemptions payable |
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Total liabilities |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
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NET ASSETS |
$ | 3,100,458 | $ | 196,181 | $ | 129,460 | $ | 2,200,424 | $ | 1,804,920 | $ | 2,256,775 | ||||||||||||||||||||||||||
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NET ASSETS REPRESENTED BY: |
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Accumulation units |
$ | 3,100,458 | $ | 196,181 | $ | 129,460 | $ | 2,200,424 | $ | 1,804,920 | $ | 2,256,775 | ||||||||||||||||||||||||||
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ACCUMULATION UNITS OUTSTANDING |
203,419 | 8,707 | 5,259 | 71,151 | 68,530 | 49,567 | ||||||||||||||||||||||||||||||||
UNIT VALUE (ACCUMULATION) |
$ | 15.24 | $ | 22.53 | $ | 24.62 | $ | 30.93 | $ | 26.34 | $ | 45.53 | ||||||||||||||||||||||||||
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(1) Cost of investments: |
$ | 3,319,677 | $ | 239,306 | $ | 118,557 | $ | 2,217,050 | $ | 1,819,003 | $ | 2,629,797 | ||||||||||||||||||||||||||
Shares of investments: |
94,010 | 17,883 | 5,906 | 65,198 | 161,010 | 64,113 |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2018
INVESTMENT DIVISIONS |
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JANUS HENDERSON VIT GLOBAL RESEARCH PORTFOLIO |
JANUS HENDERSON VIT GLOBAL TECHNOLOGY PORTFOLIO |
JANUS HENDERSON VIT OVERSEAS PORTFOLIO |
LORD ABBETT SERIES DEVELOPING GROWTH PORTFOLIO |
MFS VIT III MID CAP VALUE PORTFOLIO |
MFS VIT MID CAP GROWTH SERIES | |||||||||||||||||||||||||||||||||
ASSETS: |
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Investments at fair value (1) |
$ | 757,306 | $ | 921,762 | $ | 49,358 | $ | 80,521 | $ | 2,456 | $ | 2,320 | ||||||||||||||||||||||||||
Investment income due and accrued |
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Receivable for investments sold |
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Purchase payments receivable |
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Total assets |
757,306 | 921,762 | 49,358 | 80,521 | 2,456 | 2,320 | ||||||||||||||||||||||||||||||||
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LIABILITIES: |
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Payable for investments purchased |
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Redemptions payable |
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Total liabilities |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
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NET ASSETS |
$ | 757,306 | $ | 921,762 | $ | 49,358 | $ | 80,521 | $ | 2,456 | $ | 2,320 | ||||||||||||||||||||||||||
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NET ASSETS REPRESENTED BY: |
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Accumulation units |
$ | 757,306 | $ | 921,762 | $ | 49,358 | $ | 80,521 | $ | 2,456 | $ | 2,320 | ||||||||||||||||||||||||||
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| |||||||||||||||||||||
ACCUMULATION UNITS OUTSTANDING |
58,581 | 21,903 | 1,996 | 6,917 | 253 | 199 | ||||||||||||||||||||||||||||||||
UNIT VALUE (ACCUMULATION) |
$ | 12.93 | $ | 42.08 | $ | 24.73 | $ | 11.64 | $ | 9.71 | $ | 11.66 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
(1) Cost of investments: |
$ | 706,699 | $ | 987,998 | $ | 57,237 | $ | 92,811 | $ | 2,390 | $ | 2,213 | ||||||||||||||||||||||||||
Shares of investments: |
16,068 | 83,342 | 1,848 | 3,225 | 331 | 282 |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||||
MFS VIT TOTAL RETURN BOND SERIES |
MFS VIT VALUE SERIES |
NEUBERGER BERMAN AMT GUARDIAN PORTFOLIO |
NEUBERGER BERMAN AMT LARGE CAP VALUE PORTFOLIO |
NEUBERGER BERMAN AMT MID CAP GROWTH PORTFOLIO |
NEUBERGER BERMAN AMT MID CAP INTRINSIC VALUE PORTFOLIO | |||||||||||||||||||||||||||||||||
ASSETS: |
||||||||||||||||||||||||||||||||||||||
Investments at fair value (1) |
$ | 907,848 | $ | 356,133 | $ | 19,368 | $ | 8,069 | $ | 12,988 | $ | 713,744 | ||||||||||||||||||||||||||
Investment income due and accrued |
||||||||||||||||||||||||||||||||||||||
Receivable for investments sold |
||||||||||||||||||||||||||||||||||||||
Purchase payments receivable |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total assets |
907,848 | 356,133 | 19,368 | 8,069 | 12,988 | 713,744 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
LIABILITIES: |
||||||||||||||||||||||||||||||||||||||
Payable for investments purchased |
||||||||||||||||||||||||||||||||||||||
Redemptions payable |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total liabilities |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS |
$ | 907,848 | $ | 356,133 | $ | 19,368 | $ | 8,069 | $ | 12,988 | $ | 713,744 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS REPRESENTED BY: |
||||||||||||||||||||||||||||||||||||||
Accumulation units |
$ | 907,848 | $ | 356,133 | $ | 19,368 | $ | 8,069 | $ | 12,988 | $ | 713,744 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
ACCUMULATION UNITS OUTSTANDING |
89,611 | 30,312 | 683 | 290 | 576 | 32,280 | ||||||||||||||||||||||||||||||||
UNIT VALUE (ACCUMULATION) |
$ | 10.13 | $ | 11.75 | $ | 28.36 | $ | 27.82 | $ | 22.55 | $ | 22.11 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
(1) Cost of investments: |
$ | 968,928 | $ | 404,939 | $ | 21,626 | $ | 7,327 | $ | 14,181 | $ | 855,256 | ||||||||||||||||||||||||||
Shares of investments: |
71,767 | 20,586 | 1,442 | 553 | 539 | 45,490 |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||||
NEUBERGER BERMAN AMT SUSTAINABLE EQUITY PORTFOLIO |
OPPENHEIMER MAIN STREET SMALL CAP FUND/VA |
PIMCO VIT HIGH YIELD PORTFOLIO |
PIMCO VIT LOW DURATION PORTFOLIO |
PIMCO VIT REAL RETURN PORTFOLIO |
PIMCO VIT TOTAL RETURN PORTFOLIO | |||||||||||||||||||||||||||||||||
ASSETS: |
||||||||||||||||||||||||||||||||||||||
Investments at fair value (1) |
$ | 77,183 | $ | 913,048 | $ | 179,729 | $ | 6,107,035 | $ | 509,339 | $ | 3,535,406 | ||||||||||||||||||||||||||
Investment income due and accrued |
761 | 15,863 | 889 | 9,563 | ||||||||||||||||||||||||||||||||||
Receivable for investments sold |
||||||||||||||||||||||||||||||||||||||
Purchase payments receivable |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total assets |
77,183 | 913,048 | 180,490 | 6,122,898 | 510,228 | 3,544,969 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
LIABILITIES: |
||||||||||||||||||||||||||||||||||||||
Payable for investments purchased |
||||||||||||||||||||||||||||||||||||||
Redemptions payable |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total liabilities |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS |
$ | 77,183 | $ | 913,048 | $ | 180,490 | $ | 6,122,898 | $ | 510,228 | $ | 3,544,969 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS REPRESENTED BY: |
||||||||||||||||||||||||||||||||||||||
Accumulation units |
$ | 77,183 | $ | 913,048 | $ | 180,490 | $ | 6,122,898 | $ | 510,228 | $ | 3,544,969 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
ACCUMULATION UNITS OUTSTANDING |
2,458 | 80,774 | 7,702 | 403,509 | 29,567 | 181,400 | ||||||||||||||||||||||||||||||||
UNIT VALUE (ACCUMULATION) |
$ | 31.40 | $ | 11.30 | $ | 23.43 | $ | 15.17 | $ | 17.26 | $ | 19.54 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
(1) Cost of investments: |
$ | 86,027 | $ | 1,127,543 | $ | 188,057 | $ | 6,296,928 | $ | 530,432 | $ | 3,722,725 | ||||||||||||||||||||||||||
Shares of investments: |
3,400 | 44,845 | 24,688 | 605,857 | 42,982 | 337,348 |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||||
PIONEER REAL ESTATE SHARES VCT PORTFOLIO |
PUTNAM VT EQUITY INCOME FUND |
PUTNAM VT HIGH YIELD FUND |
PUTNAM VT INCOME FUND |
PUTNAM VT INTERNATIONAL GROWTH FUND |
PUTNAM VT SMALL CAP VALUE FUND | |||||||||||||||||||||||||||||||||
ASSETS: |
||||||||||||||||||||||||||||||||||||||
Investments at fair value (1) |
$ | 49,208 | $ | 341,020 | $ | 721,658 | $ | 135,090 | $ | 44,796 | $ | 78,435 | ||||||||||||||||||||||||||
Investment income due and accrued |
||||||||||||||||||||||||||||||||||||||
Receivable for investments sold |
||||||||||||||||||||||||||||||||||||||
Purchase payments receivable |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total assets |
49,208 | 341,020 | 721,658 | 135,090 | 44,796 | 78,435 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
LIABILITIES: |
||||||||||||||||||||||||||||||||||||||
Payable for investments purchased |
||||||||||||||||||||||||||||||||||||||
Redemptions payable |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total liabilities |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS |
$ | 49,208 | $ | 341,020 | $ | 721,658 | $ | 135,090 | $ | 44,796 | $ | 78,435 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS REPRESENTED BY: |
||||||||||||||||||||||||||||||||||||||
Accumulation units |
$ | 49,208 | $ | 341,020 | $ | 721,658 | $ | 135,090 | $ | 44,796 | $ | 78,435 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
ACCUMULATION UNITS OUTSTANDING |
4,946 | 10,372 | 32,047 | 12,703 | 2,265 | 7,546 | ||||||||||||||||||||||||||||||||
UNIT VALUE (ACCUMULATION) |
$ | 9.95 | $ | 32.88 | $ | 22.52 | $ | 10.63 | $ | 19.78 | $ | 10.39 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
(1) Cost of investments: |
$ | 59,228 | $ | 346,316 | $ | 774,943 | $ | 137,005 | $ | 56,403 | $ | 120,774 | ||||||||||||||||||||||||||
Shares of investments: |
3,921 | 14,605 | 121,491 | 12,625 | 2,537 | 8,696 |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||||
PUTNAM VT SUSTAINABLE FUTURE FUND |
ROYCE CAPITAL FUND - SMALL- CAP PORTFOLIO |
T. ROWE PRICE BLUE CHIP GROWTH PORTFOLIO |
VAN ECK VIP EMERGING MARKETS FUND |
VAN ECK VIP GLOBAL HARD ASSETS FUND |
VICTORY RS SMALL CAP GROWTH EQUITY VIP SERIES | |||||||||||||||||||||||||||||||||
ASSETS: |
||||||||||||||||||||||||||||||||||||||
Investments at fair value (1) |
$ | 87,947 | $ | 1,007,690 | $ | 1,586,586 | $ | 45,587 | $ | 779,498 | $ | 6,259 | ||||||||||||||||||||||||||
Investment income due and accrued |
||||||||||||||||||||||||||||||||||||||
Receivable for investments sold |
||||||||||||||||||||||||||||||||||||||
Purchase payments receivable |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total assets |
87,947 | 1,007,690 | 1,586,586 | 45,587 | 779,498 | 6,259 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
LIABILITIES: |
||||||||||||||||||||||||||||||||||||||
Payable for investments purchased |
||||||||||||||||||||||||||||||||||||||
Redemptions payable |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total liabilities |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS |
$ | 87,947 | $ | 1,007,690 | $ | 1,586,586 | $ | 45,587 | $ | 779,498 | $ | 6,259 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS REPRESENTED BY: |
||||||||||||||||||||||||||||||||||||||
Accumulation units |
$ | 87,947 | $ | 1,007,690 | $ | 1,586,586 | $ | 45,587 | $ | 779,498 | $ | 6,259 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
ACCUMULATION UNITS OUTSTANDING |
2,589 | 55,536 | 109,856 | 1,121 | 19,412 | 719 | ||||||||||||||||||||||||||||||||
UNIT VALUE (ACCUMULATION) |
$ | 33.97 | $ | 18.14 | $ | 14.44 | $ | 40.67 | $ | 40.16 | $ | 8.71 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
(1) Cost of investments: |
$ | 92,208 | $ | 1,286,442 | $ | 1,550,940 | $ | 49,087 | $ | 955,023 | $ | 5,842 | ||||||||||||||||||||||||||
Shares of investments: |
5,213 | 131,039 | 53,492 | 3,821 | 45,799 | 409 |
The accompanying notes are an integral part of these financial statements. | (Concluded) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||
ALGER SMALL CAP GROWTH PORTFOLIO |
AMERICAN CENTURY INVESTMENTS VP CAPITAL APPRECIATION FUND |
AMERICAN CENTURY INVESTMENTS VP INCOME & GROWTH FUND |
AMERICAN CENTURY INVESTMENTS VP INFLATION PROTECTION FUND |
AMERICAN CENTURY INVESTMENTS VP INTERNATIONAL FUND |
AMERICAN CENTURY INVESTMENTS VP VALUE FUND | |||||||||||||||||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||||||||||||||||||
Dividends |
$ | $ | $ | 44 | $ | 18,104 | $ | 664 | $ | 15,172 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) |
0 | 0 | 44 | 18,104 | 664 | 15,172 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on sale of fund shares |
(13,948 | ) | 164 | 474 | (2,539 | ) | 416 | 29,606 | ||||||||||||||||||||||||||||
Realized gain distributions |
18,469 | 843 | 293 | 3,435 | 52 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net realized gain (loss) on investments |
4,521 | 1,007 | 767 | (2,539 | ) | 3,851 | 29,658 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
7,403 | (14,839 | ) | (731 | ) | (34,080 | ) | (12,711) | (134,347 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
11,924 | (13,832 | ) | 36 | (36,619 | ) | (8,860) | (104,689 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 11,924 | $ | (13,832 | ) | $ | 80 | $ | (18,515 | ) | $ | (8,196) | $ | (89,517 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||||||||||||
AMERICAN FUNDS IS GLOBAL SMALL CAPITALIZATION FUND |
AMERICAN FUNDS IS GROWTH FUND |
AMERICAN FUNDS IS INTERNATIONAL FUND |
AMERICAN FUNDS IS NEW WORLD FUND |
BLACKROCK GLOBAL ALLOCATION VI FUND |
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO |
|||||||||||||||||||||||||||||||||||||||||
(1) | ||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||||||||||||||||||||||||||||
Dividends |
$ | 67 | $ | 11,253 | $ | 28,224 | $ | 15,157 | $ | 218 | $ | 272 | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) |
67 | 11,253 | 28,224 | 15,157 | 218 | 272 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
||||||||||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on sale of fund shares |
(1,499 | ) | 4,400 | 39,875 | 10,594 | (3) | 32 | |||||||||||||||||||||||||||||||||||||||
Realized gain distributions |
1,449 | 256,120 | 78,008 | 47,113 | 848 | 978 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net realized gain (loss) on investments |
(50 | ) | 260,520 | 117,883 | 57,707 | 845 | 1,010 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(23,879 | ) | (285,953 | ) | (366,366 | ) | (330,745 | ) | (2,574) | (8,144) | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(23,929 | ) | (25,433 | ) | (248,483 | ) | (273,038 | ) | (1,729) | (7,134) | ||||||||||||||||||||||||||||||||||||
|
|
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|
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|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (23,862 | ) | $ | (14,180 | ) | $ | (220,259 | ) | $ | (257,881 | ) | $ | (1,511) | $ | (6,862) | ||||||||||||||||||||||||||||||
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|
|
|
|
|
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|
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|
|
|
|
|
|||||||||||||||||||||||||||||||
(1) For the period July 9, 2018 to December 31, 2018. |
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||||||||||||
CLEARBRIDGE VARIABLE SMALL CAP GROWTH PORTFOLIO |
COLUMBIA VARIABLE PORTFOLIO - SMALL CAP VALUE FUND |
DAVIS FINANCIAL PORTFOLIO |
DAVIS VALUE PORTFOLIO |
DELAWARE VIP INTERNATIONAL VALUE EQUITY SERIES |
DELAWARE VIP SMALL CAP VALUE SERIES |
|||||||||||||||||||||||||||||||||||||||||
(1) | ||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||||||||||||||||||||||||||||
Dividends |
$ | $ | 278 | $ | 520 | $ | 1,006 | $ | $ | 346 | ||||||||||||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) |
0 | 278 | 520 | 1,006 | 0 | 346 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
||||||||||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on sale of fund shares |
3,032 | 544 | 1,173 | 80 | (2,540) | |||||||||||||||||||||||||||||||||||||||||
Realized gain distributions |
5,938 | 9,998 | 5,381 | 20,234 | 4,143 | |||||||||||||||||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net realized gain (loss) on investments |
8,970 | 10,542 | 6,554 | 20,314 | 0 | 1,603 | ||||||||||||||||||||||||||||||||||||||||
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|
|
|
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|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(7,962 | ) | (23,079 | ) | (11,011 | ) | (36,824 | ) | (15) | (12,190) | ||||||||||||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
1,008 | (12,537 | ) | (4,457 | ) | (16,510 | ) | (15) | (10,587) | |||||||||||||||||||||||||||||||||||||
|
|
|
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|
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|
|
|||||||||||||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 1,008 | $ | (12,259 | ) | $ | (3,937 | ) | $ | (15,504 | ) | $ | (15) | $ | (10,241) | |||||||||||||||||||||||||||||||
|
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|
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|
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|
|
|
|
|
|||||||||||||||||||||||||||||||
(1) For the period May 29, 2018 to December 31, 2018. |
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||||||||||||
DREYFUS STOCK INDEX FUND |
DREYFUS VIF INTERNATIONAL EQUITY PORTFOLIO |
DWS CROCI® U.S. VIP |
DWS GLOBAL SMALL CAP VIP |
DWS HIGH INCOME VIP |
DWS SMALL CAP INDEX VIP |
|||||||||||||||||||||||||||||||||||||||||
(1) | ||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||||||||||||||||||||||||||||
Dividends |
$ | 449,486 | $ | 423 | $ | 7,698 | $ | 370 | $ | 5,173 | $ | 65,936 | ||||||||||||||||||||||||||||||||||
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) |
449,486 | 423 | 7,698 | 370 | 5,173 | 65,936 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
||||||||||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on sale of fund shares |
615,932 | 282 | (4,058 | ) | (8,724 | ) | (126) | 76,522 | ||||||||||||||||||||||||||||||||||||||
Realized gain distributions |
598,723 | 22,042 | 17,417 | 467,982 | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net realized gain (loss) on investments |
1,214,655 | 282 | 17,984 | 8,693 | (126) | 544,504 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(2,858,477 | ) | (9,353 | ) | (54,923 | ) | (5,268 | ) | (6,627) | (1,362,257) | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(1,643,822 | ) | (9,071 | ) | (36,939 | ) | 3,425 | (6,753) | (817,753) | |||||||||||||||||||||||||||||||||||||
|
|
|
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|
|
|
|
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|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (1,194,336 | ) | $ | (8,648 | ) | $ | (29,241 | ) | $ | 3,795 | $ | (1,580) | $ | (751,817) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
(1) For the period January 1, 2018 to June 11, 2018. |
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||
DWS SMALL MID CAP VALUE VIP |
FEDERATED KAUFMANN FUND II |
FIDELITY VIP CONTRAFUND PORTFOLIO |
FIDELITY VIP GROWTH PORTFOLIO |
FIDELITY VIP INVESTMENT GRADE BOND PORTFOLIO |
FIDELITY VIP MID CAP PORTFOLIO | |||||||||||||||||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||||||||||||||||||
Dividends |
$ | 23,823 | $ | $ | 12,939 | $ | 356 | $ | 12,042 | $ | 4,188 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) |
23,823 | 0 | 12,939 | 356 | 12,042 | 4,188 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on sale of fund shares |
19,042 | 2,246 | 35,963 | (8,130 | ) | (7,528) | (561 | ) | ||||||||||||||||||||||||||||
Realized gain distributions |
307,706 | 10,575 | 256,144 | 123,224 | 3,233 | 89,860 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net realized gain (loss) on investments |
326,748 | 12,821 | 292,107 | 115,094 | (4,295) | 89,299 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(624,251 | ) | (8,023 | ) | (495,777 | ) | (127,070 | ) | (12,951) | (253,140 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(297,503 | ) | 4,798 | (203,670 | ) | (11,976 | ) | (17,246) | (163,841 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (273,680 | ) | $ | 4,798 | $ | (190,731 | ) | $ | (11,620 | ) | $ | (5,204) | $ | (159,653 | ) | ||||||||||||||||||||
|
|
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|
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|
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|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||
GOLDMAN SACHS VIT MID CAP VALUE FUND |
GREAT-WEST AGGRESSIVE PROFILE FUND |
GREAT-WEST ARIEL MID CAP VALUE FUND |
GREAT-WEST BOND INDEX FUND |
GREAT-WEST CONSERVATIVE PROFILE FUND |
GREAT-WEST CORE BOND FUND | |||||||||||||||||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||||||||||||||||||
Dividends |
$ | 678 | $ | 29,520 | $ | 3,006 | $ | 26,744 | $ | 13,422 | $ | 56,265 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) |
678 | 29,520 | 3,006 | 26,744 | 13,422 | 56,265 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on sale of fund shares |
14 | 663 | (19,724 | ) | (5,723 | ) | (124) | (1,495 | ) | |||||||||||||||||||||||||||
Realized gain distributions |
6,152 | 135,347 | 258 | 13,681 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net realized gain (loss) on investments |
6,166 | 136,010 | (19,466 | ) | (5,723 | ) | 13,557 | (1,495 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(12,967 | ) | (294,737 | ) | (48,351 | ) | (31,012 | ) | (25,786) | (83,114 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(6,801 | ) | (158,727 | ) | (67,817 | ) | (36,735 | ) | (12,229) | (84,609 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (6,123 | ) | $ | (129,207 | ) | $ | (64,811 | ) | $ | (9,991 | ) | $ | 1,193 | $ | (28,344 | ) | |||||||||||||||||||
|
|
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|
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|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||||||||||||
GREAT-WEST EMERGING MARKETS EQUITY FUND |
GREAT-WEST GLOBAL BOND FUND |
GREAT-WEST GOVERNMENT MONEY MARKET FUND |
GREAT-WEST INTERNATIONAL INDEX FUND |
GREAT-WEST INTERNATIONAL VALUE FUND |
GREAT-WEST LARGE CAP GROWTH FUND |
|||||||||||||||||||||||||||||||||||||||||
(1) | ||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||||||||||||||||||||||||||||
Dividends |
$ | 17 | $ | 121,094 | $ | 145,671 | $ | 1,103 | $ | 72,240 | $ | 551 | ||||||||||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) |
17 | 121,094 | 145,671 | 1,103 | 72,240 | 551 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
||||||||||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on sale of fund shares |
(120,835 | ) | 302 | 16,385 | 13,181 | |||||||||||||||||||||||||||||||||||||||||
Realized gain distributions |
17,450 | 718 | 1,028,449 | 42,206 | ||||||||||||||||||||||||||||||||||||||||||
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|
|
|
|
|
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|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net realized gain (loss) on investments |
0 | (103,385 | ) | 0 | 1,020 | 1,044,834 | 55,387 | |||||||||||||||||||||||||||||||||||||||
|
|
|
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|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
32 | (21,154 | ) | (9,242 | ) | (2,000,998) | (57,932) | |||||||||||||||||||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
32 | (124,539 | ) | 0 | (8,222 | ) | (956,164) | (2,545) | ||||||||||||||||||||||||||||||||||||||
|
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|
|
|
|||||||||||||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 49 | $ | (3,445 | ) | $ | 145,671 | $ | (7,119 | ) | $ | (883,924) | $ | (1,994) | ||||||||||||||||||||||||||||||||
|
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|
|
|
|
|
|||||||||||||||||||||||||||||||
(1) For the period December 24, 2018 to December 31, 2018. |
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||
GREAT-WEST LIFETIME 2015 FUND |
GREAT-WEST LIFETIME 2020 FUND |
GREAT-WEST LIFETIME 2025 FUND |
GREAT-WEST LIFETIME 2030 FUND |
GREAT-WEST LIFETIME 2035 FUND |
GREAT-WEST LIFETIME 2040 FUND | |||||||||||||||||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||||||||||||||||||
Dividends |
$ | 33,724 | $ | 12,767 | $ | 47,013 | $ | 32,549 | $ | 26,457 | $ | 18,311 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) |
33,724 | 12,767 | 47,013 | 32,549 | 26,457 | 18,311 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on sale of fund shares |
14,771 | 1,273 | 47,246 | 1,130 | 12,885 | (6,062 | ) | |||||||||||||||||||||||||||||
Realized gain distributions |
60,350 | 12,122 | 113,832 | 46,978 | 127,204 | 27,574 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net realized gain (loss) on investments |
75,121 | 13,395 | 161,078 | 48,108 | 140,089 | 21,512 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(194,154 | ) | (59,202 | ) | (337,308 | ) | (180,929 | ) | (320,459) | (115,822 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(119,033 | ) | (45,807 | ) | (176,230 | ) | (132,821 | ) | (180,370) | (94,310 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (85,309 | ) | $ | (33,040 | ) | $ | (129,217 | ) | $ | (100,272 | ) | $ | (153,913) | $ | (75,999 | ) | |||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||
GREAT-WEST LIFETIME 2045 FUND |
GREAT-WEST LIFETIME 2050 FUND |
GREAT-WEST LIFETIME 2055 FUND |
GREAT-WEST LOOMIS SAYLES SMALL CAP VALUE FUND |
GREAT-WEST MID CAP VALUE FUND |
GREAT-WEST MODERATE PROFILE FUND | |||||||||||||||||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||||||||||||||||||
Dividends |
$ | 8,370 | $ | 6,679 | $ | 2,833 | $ | $ | 4,123 | $ | 8,151 | |||||||||||||||||||||||||
|
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|
| ||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) |
8,370 | 6,679 | 2,833 | 0 | 4,123 | 8,151 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on sale of fund shares |
14,738 | 1,394 | 580 | 1,475 | 27 | (394 | ) | |||||||||||||||||||||||||||||
Realized gain distributions |
38,335 | 10,589 | 12,983 | 21,272 | 2,330 | 18,037 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net realized gain (loss) on investments |
53,073 | 11,983 | 13,563 | 22,747 | 2,357 | 17,643 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(107,438 | ) | (44,541 | ) | (35,180 | ) | (161,852 | ) | (16,628) | (44,833 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(54,365 | ) | (32,558 | ) | (21,617 | ) | (139,105 | ) | (14,271) | (27,190 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (45,995 | ) | $ | (25,879 | ) | $ | (18,784 | ) | $ | (139,105 | ) | $ | (10,148) | $ | (19,039 | ) | |||||||||||||||||||
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||
GREAT-WEST MODERATELY AGGRESSIVE PROFILE FUND |
GREAT-WEST MODERATELY CONSERVATIVE PROFILE FUND |
GREAT-WEST MULTI-SECTOR BOND FUND |
GREAT-WEST REAL ESTATE INDEX FUND |
GREAT-WEST S&P MID CAP 400® INDEX FUND |
GREAT-WEST S&P SMALL CAP 600® INDEX FUND | |||||||||||||||||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||||||||||||||||||
Dividends |
$ | 2,168 | $ | 2,445 | $ | 14,683 | $ | 2,720 | $ | 9,869 | $ | 2,053 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) |
2,168 | 2,445 | 14,683 | 2,720 | 9,869 | 2,053 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on sale of fund shares |
113 | (33 | ) | 6,407 | 12 | 11,633 | (16,629 | ) | ||||||||||||||||||||||||||||
Realized gain distributions |
6,178 | 3,816 | 3,281 | 3,753 | 94,518 | 17,957 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net realized gain (loss) on investments |
6,291 | 3,783 | 9,688 | 3,765 | 106,151 | 1,328 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(15,179 | ) | (11,164 | ) | (45,222 | ) | (19,266 | ) | (323,188) | (19,264 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(8,888 | ) | (7,381 | ) | (35,534 | ) | (15,501 | ) | (217,037) | (17,936 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (6,720 | ) | $ | (4,936 | ) | $ | (20,851 | ) | $ | (12,781 | ) | $ | (207,168) | $ | (15,883 | ) | |||||||||||||||||||
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||||||||||||
GREAT-WEST SHORT DURATION BOND FUND |
GREAT-WEST SMALL CAP GROWTH FUND |
GREAT-WEST T. ROWE PRICE EQUITY INCOME FUND |
GREAT-WEST T. ROWE PRICE MID CAP GROWTH FUND |
GREAT-WEST U.S. GOVERNMENT SECURITIES FUND |
INVESCO V.I. CORE EQUITY FUND |
|||||||||||||||||||||||||||||||||||||||||
(1) | ||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||||||||||||||||||||||||||||
Dividends |
$ | 143,678 | $ | $ | 5,154 | $ | 3,399 | $ | 63,321 | $ | 1,646 | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) |
143,678 | 0 | 5,154 | 3,399 | 63,321 | 1,646 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
||||||||||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on sale of fund shares |
(11,424 | ) | 2,882 | 8,091 | 163,316 | (37,973) | (29,735) | |||||||||||||||||||||||||||||||||||||||
Realized gain distributions |
94,944 | 214,370 | 11,786 | |||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net realized gain (loss) on investments |
(11,424 | ) | 2,882 | 103,035 | 377,686 | (37,973) | (17,949) | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(89,020 | ) | (272,081 | ) | (428,922 | ) | (11,748) | (1,664) | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(100,444 | ) | 2,882 | (169,046 | ) | (51,236 | ) | (49,721) | (19,613) | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 43,234 | $ | 2,882 | $ | (163,892 | ) | $ | (47,837 | ) | $ | 13,600 | $ | (17,967) | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
(1) For the period June 11, 2018 to July 13, 2018. |
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||
INVESCO V.I. GLOBAL REAL ESTATE FUND |
INVESCO V.I. HEALTH CARE FUND |
INVESCO V.I. INTERNATIONAL GROWTH FUND |
INVESCO V.I. MID CAP CORE EQUITY FUND |
INVESCO V.I. TECHNOLOGY FUND |
JANUS HENDERSON VIT BALANCED PORTFOLIO | |||||||||||||||||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||||||||||||||||||
Dividends |
$ | 60,962 | $ | $ | 73,520 | $ | 1,153 | $ | $ | 46,506 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) |
60,962 | 0 | 73,520 | 1,153 | 0 | 46,506 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on sale of fund shares |
12,491 | 265 | 39,306 | (639 | ) | 13,308 | 138,255 | |||||||||||||||||||||||||||||
Realized gain distributions |
19,064 | 11,184 | 24,898 | 31,910 | 6,540 | 56,582 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net realized gain (loss) on investments |
31,555 | 11,449 | 64,204 | 31,271 | 19,848 | 194,837 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(191,911 | ) | (10,473 | ) | (673,676 | ) | (58,430 | ) | (16,559) | (240,131) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(160,356 | ) | 976 | (609,472 | ) | (27,159 | ) | 3,289 | (45,294) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (99,394 | ) | $ | 976 | $ | (535,952 | ) | $ | (26,006 | ) | $ | 3,289 | $ | 1,212 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||
JANUS HENDERSON VIT FLEXIBLE BOND PORTFOLIO |
JANUS HENDERSON VIT FORTY PORTFOLIO |
JANUS HENDERSON VIT GLOBAL RESEARCH PORTFOLIO |
JANUS HENDERSON VIT GLOBAL TECHNOLOGY PORTFOLIO |
JANUS HENDERSON VIT OVERSEAS PORTFOLIO |
LORD ABBETT SERIES DEVELOPING GROWTH PORTFOLIO | |||||||||||||||||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||||||||||||||||||
Dividends |
$ | 58,472 | $ | 39,393 | $ | 9,779 | $ | 7,427 | $ | 1,016 | $ | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) |
58,472 | 39,393 | 9,779 | 7,427 | 1,016 | 0 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on sale of fund shares |
(68,879 | ) | 273,877 | 12,476 | 24,805 | (55) | 740 | |||||||||||||||||||||||||||||
Realized gain distributions |
423,236 | 22,423 | 12,019 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net realized gain (loss) on investments |
(68,879 | ) | 697,113 | 12,476 | 47,228 | (55) | 12,759 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
2,799 | (658,232 | ) | (79,514 | ) | (128,669 | ) | (9,656) | (16,088 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(66,080 | ) | 38,881 | (67,038 | ) | (81,441 | ) | (9,711) | (3,329 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (7,608 | ) | $ | 78,274 | $ | (57,259 | ) | $ | (74,014 | ) | $ | (8,695) | $ | (3,329 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||||||||||||
MFS VIT III MID CAP VALUE PORTFOLIO |
MFS VIT MID CAP GROWTH SERIES |
MFS VIT TOTAL RETURN BOND SERIES |
MFS VIT VALUE SERIES |
NEUBERGER BERMAN AMT GUARDIAN PORTFOLIO |
NEUBERGER BERMAN AMT LARGE CAP VALUE PORTFOLIO |
|||||||||||||||||||||||||||||||||||||||||
(1) | (1) | |||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||||||||||||||||||||||||||||
Dividends |
$ | $ | $ | 29,640 | $ | 6,032 | $ | 544 | $ | 114 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) |
0 | 0 | 29,640 | 6,032 | 544 | 114 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
||||||||||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on sale of fund shares |
(551 | ) | 565 | (32,194) | 1,322 | |||||||||||||||||||||||||||||||||||||||||
Realized gain distributions |
26,262 | 10,647 | 1,011 | |||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net realized gain (loss) on investments |
0 | 0 | (551 | ) | 26,827 | (21,547) | 2,333 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
66 | 107 | (38,366 | ) | (72,178 | ) | 13,271 | (2,502) | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
66 | 107 | (38,917 | ) | (45,351 | ) | (8,276) | (169) | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 66 | $ | 107 | $ | (9,277 | ) | $ | (39,319 | ) | $ | (7,732) | $ | (55) | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
(1) For the period December 24, 2018 to December 31, 2018. |
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||
NEUBERGER BERMAN AMT MID CAP GROWTH PORTFOLIO |
NEUBERGER BERMAN AMT MID CAP INTRINSIC VALUE PORTFOLIO |
NEUBERGER BERMAN AMT SUSTAINABLE EQUITY PORTFOLIO |
OPPENHEIMER MAIN STREET SMALL CAP FUND/VA |
PIMCO VIT HIGH YIELD PORTFOLIO |
PIMCO VIT LOW DURATION PORTFOLIO | |||||||||||||||||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||||||||||||||||||
Dividends |
$ | $ | 5,673 | $ | 406 | $ | 3,217 | $ | 10,873 | $ | 115,953 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) |
0 | 5,673 | 406 | 3,217 | 10,873 | 115,953 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on sale of fund shares |
10,166 | 139,739 | 427 | 3,998 | (839) | (10,619 | ) | |||||||||||||||||||||||||||||
Realized gain distributions |
8,454 | 39,299 | 4,539 | 132,497 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net realized gain (loss) on investments |
18,620 | 179,038 | 4,966 | 136,495 | (839) | (10,619 | ) | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(25,839 | ) | (296,631 | ) | (10,289 | ) | (246,455 | ) | (14,960) | (83,547 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(7,219 | ) | (117,593 | ) | (5,323 | ) | (109,960 | ) | (15,799) | (94,166 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (7,219 | ) | $ | (111,920 | ) | $ | (4,917 | ) | $ | (106,743 | ) | $ | (4,926) | $ | 21,787 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||
PIMCO VIT REAL RETURN PORTFOLIO |
PIMCO VIT TOTAL RETURN PORTFOLIO |
PIONEER REAL ESTATE SHARES VCT PORTFOLIO |
PUTNAM VT EQUITY INCOME FUND |
PUTNAM VT HIGH YIELD FUND |
PUTNAM VT INCOME FUND | |||||||||||||||||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||||||||||||||||||
Dividends |
$ | 13,688 | $ | 92,404 | $ | 1,355 | $ | 4,206 | $ | 49,683 | $ | 3,371 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) |
13,688 | 92,404 | 1,355 | 4,206 | 49,683 | 3,371 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on sale of fund shares |
(14,665 | ) | (14,135 | ) | (148 | ) | 26,017 | (7,716) | (43 | ) | ||||||||||||||||||||||||||
Realized gain distributions |
43,922 | 4,599 | 20,649 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net realized gain (loss) on investments |
(14,665 | ) | 29,787 | 4,451 | 46,666 | (7,716) | (43 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(19,173 | ) | (142,553 | ) | (8,662 | ) | (79,680 | ) | (67,997) | (2,153 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(33,838 | ) | (112,766 | ) | (4,211 | ) | (33,014 | ) | (75,713) | (2,196 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (20,150 | ) | $ | (20,362 | ) | $ | (2,856 | ) | $ | (28,808 | ) | $ | (26,030) | $ | 1,175 | ||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||||||||||||
PUTNAM VT INTERNATIONAL GROWTH FUND |
PUTNAM VT SMALL CAP VALUE FUND |
PUTNAM VT SUSTAINABLE FUTURE FUND |
ROYCE
CAPITAL FUND - MICRO- CAP PORTFOLIO |
ROYCE
CAPITAL FUND - SMALL- CAP PORTFOLIO |
T. ROWE PRICE BLUE CHIP GROWTH PORTFOLIO |
|||||||||||||||||||||||||||||||||||||||||
(1) | ||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||||||||||||||||||||||||||||
Dividends |
$ | 27 | $ | 586 | $ | 981 | $ | $ | 3,483 | $ | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
NET INVESTMENT INCOME (LOSS) |
27 | 586 | 981 | 0 | 3,483 | 0 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
||||||||||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on sale of fund shares |
120 | (1,770 | ) | 4,487 | 150 | (3,802) | 18,363 | |||||||||||||||||||||||||||||||||||||||
Realized gain distributions |
1,615 | 26,833 | 3,790 | 14,267 | 53,306 | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net realized gain (loss) on investments |
1,735 | 25,063 | 8,277 | 150 | 10,465 | 71,669 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(13,064 | ) | (44,547 | ) | (10,440 | ) | (119 | ) | (109,921) | (104,966) | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(11,329 | ) | (19,484 | ) | (2,163 | ) | 31 | (99,456) | (33,297) | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (11,302 | ) | $ | (18,898 | ) | $ | (1,182 | ) | $ | 31 | $ | (95,973) | $ | (33,297) | |||||||||||||||||||||||||||||||
|
|
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|
|
|
|
|
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|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
(1) For the period January 1, 2018 to May 23, 2018. |
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2018
INVESTMENT DIVISIONS |
||||||||||||||||||||||
VAN ECK VIP EMERGING MARKETS FUND |
VAN ECK VIP GLOBAL HARD ASSETS FUND |
VICTORY RS SMALL CAP GROWTH EQUITY VIP SERIES | ||||||||||||||||||||
(1) | ||||||||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||||
Dividends |
$ | 153 | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||||||||
NET INVESTMENT INCOME (LOSS) |
153 | 0 | 0 | |||||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
||||||||||||||||||||||
Net realized gain (loss) on sale of fund shares |
780 | (3,821 | ) | |||||||||||||||||||
Realized gain distributions |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||||||||
Net realized gain (loss) on investments |
780 | (3,821 | ) | 0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(15,003 | ) | (268,190 | ) | 417 | |||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||||||||
Net realized and unrealized gain (loss) on investments |
(14,223 | ) | (272,011 | ) | 417 | |||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (14,070 | ) | $ | (272,011 | ) | $ | 417 | ||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||||||||
(1) For the period December 24, 2018 to December 31, 2018. |
|
The accompanying notes are an integral part of these financial statements. | (Concluded) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||
ALGER SMALL CAP GROWTH PORTFOLIO | AMERICAN CENTURY INVESTMENTS VP CAPITAL APPRECIATION FUND |
AMERICAN CENTURY INVESTMENTS VP INCOME & GROWTH FUND | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | $ | $ | $ | $ | 44 | $ | 139 | ||||||||||||||||||||||||||||
Net realized gain (loss) on investments |
4,521 | (34,100 | ) | 1,007 | 5,085 | 767 | 1,798 | |||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
7,403 | 129,998 | (14,839 | ) | 5,141 | (731 | ) | (815 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
11,924 | 95,898 | (13,832 | ) | 10,226 | 80 | 1,122 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
45,000 | |||||||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(5,185 | ) | (20,170 | ) | (6,284 | ) | (987 | ) | (4,647 | ) | (3,799 | ) | ||||||||||||||||||||||||
Net transfers |
21,196 | 13,357 | 59,987 | (39,012 | ) | |||||||||||||||||||||||||||||||
Contract maintenance charges |
(152 | ) | (113 | ) | (273 | ) | (80 | ) | (14 | ) | (13 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
15,859 | (6,926 | ) | 98,430 | (40,079 | ) | (4,661 | ) | (3,812 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
27,783 | 88,972 | 84,598 | (29,853 | ) | (4,581 | ) | (2,690 | ) | |||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
427,700 | 338,728 | 89,077 | 118,930 | 4,602 | 7,292 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
End of period |
$ | 455,483 | $ | 427,700 | $ | 173,675 | $ | 89,077 | $ | 21 | $ | 4,602 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
617 | 344 | 7,218 | 6,442 | 1 | |||||||||||||||||||||||||||||||
Units redeemed |
(486 | ) | (395 | ) | (481 | ) | (10,434 | ) | (188 | ) | (173 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
131 | (51 | ) | 6,737 | (3,992 | ) | (188 | ) | (172 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||
AMERICAN CENTURY INVESTMENTS VP INFLATION PROTECTION FUND |
AMERICAN CENTURY INVESTMENTS VP INTERNATIONAL FUND |
AMERICAN CENTURY INVESTMENTS VP VALUE FUND | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 18,104 | $ | 13,883 | $ | 664 | $ | 503 | $ | 15,172 | $ | 11,402 | ||||||||||||||||||||||||
Net realized gain (loss) on investments |
(2,539 | ) | (208 | ) | 3,851 | 292 | 29,658 | 6,559 | ||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(34,080 | ) | 5,289 | (12,711 | ) | 13,688 | (134,347 | ) | 42,147 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(18,515 | ) | 18,964 | (8,196 | ) | 14,483 | (89,517 | ) | 60,108 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
1 | 140,538 | 49,793 | |||||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(6,972 | ) | (5,591 | ) | (1,072 | ) | (1,002 | ) | (22,729 | ) | (31,527 | ) | ||||||||||||||||||||||||
Net transfers |
88,290 | 134,952 | 6,004 | (8,873 | ) | 34,822 | 192,981 | |||||||||||||||||||||||||||||
Contract maintenance charges |
(296 | ) | (263 | ) | (22 | ) | (22 | ) | (441 | ) | (383 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
81,022 | 129,099 | 4,910 | (9,897 | ) | 152,190 | 210,864 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
62,507 | 148,063 | (3,286 | ) | 4,586 | 62,673 | 270,972 | |||||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
581,506 | 433,443 | 54,821 | 50,235 | 781,624 | 510,652 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
End of period |
$ | 644,013 | $ | 581,506 | $ | 51,535 | $ | 54,821 | $ | 844,297 | $ | 781,624 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
12,621 | 13,938 | 610 | 10 | 6,841 | 6,240 | ||||||||||||||||||||||||||||||
Units redeemed |
(4,833 | ) | (1,260 | ) | (197 | ) | (778 | ) | (3,475 | ) | (1,082 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
7,788 | 12,678 | 413 | (768 | ) | 3,366 | 5,158 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||
AMERICAN FUNDS IS GLOBAL SMALL CAPITALIZATION FUND |
AMERICAN FUNDS IS GROWTH FUND | AMERICAN FUNDS IS INTERNATIONAL FUND | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 67 | $ | 7 | $ | 11,253 | $ | 10,636 | $ | 28,224 | $ | 20,794 | ||||||||||||||||||||||||
Net realized gain (loss) on investments |
(50 | ) | (6,966 | ) | 260,520 | 256,321 | 117,883 | 33,821 | ||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(23,879 | ) | 9,079 | (285,953 | ) | 285,213 | (366,366 | ) | 395,485 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(23,862 | ) | 2,120 | (14,180 | ) | 552,170 | (220,259 | ) | 450,100 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
51,906 | 76,669 | 33,234 | 35,181 | ||||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(1,154 | ) | (16,221 | ) | (34,831 | ) | (32,731 | ) | (30,469 | ) | (31,767 | ) | ||||||||||||||||||||||||
Net transfers |
146,859 | (23,971 | ) | 123,088 | (342,575 | ) | (102,891 | ) | (137,660 | ) | ||||||||||||||||||||||||||
Contract maintenance charges |
(56 | ) | (6 | ) | (1,131 | ) | (857 | ) | (566 | ) | (691 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
145,649 | (40,198 | ) | 139,032 | (299,494 | ) | (100,692 | ) | (134,937 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
121,787 | (38,078 | ) | 124,852 | 252,676 | (320,951 | ) | 315,163 | ||||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
3,847 | 41,925 | 2,269,293 | 2,016,617 | 1,789,792 | 1,474,629 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
End of period |
$ | 125,634 | $ | 3,847 | $ | 2,394,145 | $ | 2,269,293 | $ | 1,468,841 | $ | 1,789,792 | ||||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
9,439 | 243 | 17,076 | 20,356 | 8,110 | 7,666 | ||||||||||||||||||||||||||||||
Units redeemed |
(914 | ) | (3,297 | ) | (11,738 | ) | (33,328 | ) | (14,959 | ) | (18,667 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
8,525 | (3,054 | ) | 5,338 | (12,972 | ) | (6,849 | ) | (11,001 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||
AMERICAN FUNDS IS NEW WORLD FUND | BLACKROCK GLOBAL ALLOCATION VI FUND |
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO | ||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2018 | 2017 | ||||||||||||||||||||||||||
(1) | (2) | |||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 15,157 | $ | 15,713 | $ | 218 | $ | 272 | $ | 59 | ||||||||||||||||||||
Net realized gain (loss) on investments |
57,707 | (5,140 | ) | 845 | 1,010 | 787 | ||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(330,745 | ) | 401,117 | (2,574 | ) | (8,144 | ) | 445 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(257,881 | ) | 411,690 | (1,511 | ) | (6,862 | ) | 1,291 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||
Purchase payments received |
59,806 | 49,203 | 14,038 | |||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(31,824 | ) | (23,852 | ) | (183 | ) | (1,776 | ) | (218 | ) | ||||||||||||||||||||
Net transfers |
(24,766 | ) | 50,402 | 22,600 | 27,982 | 13,149 | ||||||||||||||||||||||||
Contract maintenance charges |
(562 | ) | (559 | ) | (2 | ) | (45 | ) | (15 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
2,654 | 75,194 | 22,415 | 40,199 | 12,916 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total increase (decrease) in net assets |
(255,227 | ) | 486,884 | 20,904 | 33,337 | 14,207 | ||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||
Beginning of period |
1,823,016 | 1,336,132 | 0 | 14,207 | 0 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
End of period |
$ | 1,567,789 | $ | 1,823,016 | $ | 20,904 | $ | 47,544 | $ | 14,207 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||
Units issued |
11,282 | 14,098 | 1,934 | 3,357 | 1,155 | |||||||||||||||||||||||||
Units redeemed |
(11,248 | ) | (10,003 | ) | (18 | ) | (154 | ) | (22 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Net increase (decrease) |
34 | 4,095 | 1,916 | 3,203 | 1,133 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
(1) For the period July 9, 2018 to December 31, 2018. |
|
|||||||||||||||||||||||||||||
(2) For the period March 24, 2017 to December 31, 2017. |
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||||||||||||||
CLEARBRIDGE VARIABLE SMALL CAP
|
COLUMBIA VARIABLE PORTFOLIO - SMALL
CAP VALUE FUND |
DAVIS FINANCIAL PORTFOLIO | ||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||||||||
(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | $ | $ | 278 | $ | 614 | $ | 520 | $ | 276 | ||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on investments |
8,970 | 1,113 | 10,542 | 16,800 | 6,554 | 3,253 | ||||||||||||||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(7,962 | ) | 5,880 | (23,079 | ) | (6,315 | ) | (11,011 | ) | 2,047 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
1,008 | 6,993 | (12,259 | ) | 11,099 | (3,937 | ) | 5,576 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||||||||||||||
Purchase payments received |
6,068 | 1,561 | 2,499 | 2,501 | 10,847 | 847 | ||||||||||||||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(1,146 | ) | (501 | ) | (1,080 | ) | (1,467 | ) | (1,163 | ) | (373 | ) | ||||||||||||||||||||||||||||||||||||
Net transfers |
(2,761 | ) | 41,474 | (772 | ) | (63,714 | ) | (5,775 | ) | 28,967 | ||||||||||||||||||||||||||||||||||||||
Contract maintenance charges |
(65 | ) | (40 | ) | (12 | ) | (19 | ) | (59 | ) | (58 | ) | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
2,096 | 42,494 | 635 | (62,699 | ) | 3,850 | 29,383 | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total increase (decrease) in net assets |
3,104 | 49,487 | (11,624 | ) | (51,600 | ) | (87 | ) | 34,959 | |||||||||||||||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period |
49,487 | 0 | 67,998 | 119,598 | 40,871 | 5,912 | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
End of period |
$ | 52,591 | $ | 49,487 | $ | 56,374 | $ | 67,998 | $ | 40,784 | $ | 40,871 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||||||||||||||
Units issued |
1,402 | 4,005 | 259 | 599 | 701 | 1,549 | ||||||||||||||||||||||||||||||||||||||||||
Units redeemed |
(1,305 | ) | (491 | ) | (236 | ) | (2,684 | ) | (505 | ) | (174 | ) | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net increase (decrease) |
97 | 3,514 | 23 | (2,085 | ) | 196 | 1,375 | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
(1) For the period January 26, 2017 to December 31, 2017. |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||||||
DAVIS VALUE PORTFOLIO | DELAWARE VIP |
DELAWARE VIP SMALL CAP VALUE SERIES | ||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||||
(1) | ||||||||||||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 1,006 | $ | 832 | $ | $ | 346 | $ | 176 | |||||||||||||||||||||||||||||||
Net realized gain (loss) on investments |
20,314 | (56,770 | ) | 1,603 | 1,032 | |||||||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(36,824 | ) | 85,508 | (15) | (12,190 | ) | 3,151 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(15,504 | ) | 29,570 | (15) | (10,241 | ) | 4,359 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||||||
Purchase payments received |
7,020 | 10,000 | ||||||||||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(2,072 | ) | (3,463 | ) | (1) | (1,651 | ) | (1,098 | ) | |||||||||||||||||||||||||||||||
Net transfers |
(248,097 | ) | 94 | (15,679 | ) | 25,217 | ||||||||||||||||||||||||||||||||||
Contract maintenance charges |
(10 | ) | (35 | ) | (99 | ) | (79 | ) | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
(2,082 | ) | (251,595 | ) | 93 | (10,409 | ) | 34,040 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||
Total increase (decrease) in net assets |
(17,586 | ) | (222,025 | ) | 78 | (20,650 | ) | 38,399 | ||||||||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||||||
Beginning of period |
116,006 | 338,031 | 0 | 52,370 | 13,971 | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||
End of period |
$ | 98,420 | $ | 116,006 | $ | 78 | $ | 31,720 | $ | 52,370 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||||||
Units issued |
11 | 15 | 7 | 506 | 2,664 | |||||||||||||||||||||||||||||||||||
Units redeemed |
(94 | ) | (11,847 | ) | (1,498 | ) | (93 | ) | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||
Net increase (decrease) |
(83 | ) | (11,832 | ) | 7 | (992 | ) | 2,571 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||
(1) For the period May 29, 2018 to December 31, 2018. |
||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||||
DREYFUS STOCK INDEX FUND | DREYFUS VIF INTERNATIONAL EQUITY PORTFOLIO |
DWS CORE EQUITY VIP | ||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2017 | ||||||||||||||||||||||||||||||||||
(1) | ||||||||||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 449,486 | $ | 403,469 | $ | 423 | $ | 944 | $ | 253 | ||||||||||||||||||||||||||||
Net realized gain (loss) on investments |
1,214,655 | 896,450 | 282 | 7,326 | 2,506 | |||||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(2,858,477 | ) | 3,293,963 | (9,353 | ) | 7,172 | (994 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(1,194,336 | ) | 4,593,882 | (8,648 | ) | 15,442 | 1,765 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||||
Purchase payments received |
574,321 | 586,555 | 17,379 | 2,946 | 6,648 | |||||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(950,652 | ) | (407,482 | ) | (1,447 | ) | (1,079 | ) | (22,506 | ) | ||||||||||||||||||||||||||||
Net transfers |
672,882 | (95,506 | ) | 31,702 | (88,873 | ) | 314 | |||||||||||||||||||||||||||||||
Contract maintenance charges |
(9,912 | ) | (9,539 | ) | (14 | ) | (87 | ) | (34 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
286,639 | 74,028 | 47,620 | (87,093 | ) | (15,578 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||
Total increase (decrease) in net assets |
(907,697 | ) | 4,667,910 | 38,972 | (71,651 | ) | (13,813 | ) | ||||||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||||
Beginning of period |
25,894,701 | 21,226,791 | 13,069 | 84,720 | 13,813 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||
End of period |
$ | 24,987,004 | $ | 25,894,701 | $ | 52,041 | $ | 13,069 | $ | 0 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||||
Units issued |
80,183 | 60,578 | 2,145 | 233 | 365 | |||||||||||||||||||||||||||||||||
Units redeemed |
(67,774 | ) | (56,695 | ) | (106 | ) | (4,204 | ) | (1,102 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||
Net increase (decrease) |
12,409 | 3,883 | 2,039 | (3,971 | ) | (737 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||
(1) For the period January 1, 2017 to August 11, 2017. |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||
DWS CROCI® U.S. VIP |
DWS GLOBAL SMALL CAP VIP | DWS HIGH INCOME VIP | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
(1) | ||||||||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 7,698 | $ | 3,955 | $ | 370 | $ | 0 | $ | 5,173 | $ | 3,475 | ||||||||||||||||||||||||
Net realized gain (loss) on investments |
17,984 | (19,795 | ) | 8,693 | 7,728 | (126 | ) | (1,025 | ) | |||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(54,923 | ) | 73,502 | (5,268 | ) | 15,307 | (6,627 | ) | 1,356 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(29,241 | ) | 57,662 | 3,795 | 23,035 | (1,580 | ) | 3,806 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
740 | 4,636 | 13,500 | 16,892 | ||||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(19,101 | ) | (3,983 | ) | (7,295 | ) | (2,106 | ) | (1,600 | ) | (1,803 | ) | ||||||||||||||||||||||||
Net transfers |
20,557 | (56,163 | ) | (133,926 | ) | 3,185 | 26 | (10,055 | ) | |||||||||||||||||||||||||||
Contract maintenance charges |
(136 | ) | (138 | ) | (31 | ) | (61 | ) | (41 | ) | (51 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
1,320 | (59,544 | ) | (141,252 | ) | 5,654 | 11,885 | 4,983 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
(27,921 | ) | (1,882 | ) | (137,457 | ) | 28,689 | 10,305 | 8,789 | |||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
309,401 | 311,283 | 137,457 | 108,768 | 54,724 | 45,935 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
End of period |
$ | 281,480 | $ | 309,401 | $ | 0 | $ | 137,457 | $ | 65,029 | $ | 54,724 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
3,539 | 1,693 | 240 | 714 | 766 | 993 | ||||||||||||||||||||||||||||||
Units redeemed |
(3,223 | ) | (6,226 | ) | (5,736 | ) | (438 | ) | (114 | ) | (702 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
316 | (4,533 | ) | (5,496 | ) | 276 | 652 | 291 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(1) For the period January 1, 2018 to June 11, 2018. |
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||
DWS SMALL CAP INDEX VIP | DWS SMALL MID CAP VALUE VIP | FEDERATED HIGH INCOME BOND FUND II | ||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2017 | ||||||||||||||||||||||||||
(1) | ||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 65,936 | $ | 33,285 | $ | 23,823 | $ | 11,871 | $ | 1,965 | ||||||||||||||||||||
Net realized gain (loss) on investments |
544,504 | 186,357 | 326,748 | 70,578 | 1,088 | |||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(1,362,257 | ) | 501,219 | (624,251 | ) | 78,095 | (1,296 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(751,817 | ) | 720,861 | (273,680 | ) | 160,544 | 1,757 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||
Purchase payments received |
20,453 | 45,980 | 21,810 | 34,836 | ||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(158,266 | ) | (81,712 | ) | (87,669 | ) | (25,541 | ) | (289 | ) | ||||||||||||||||||||
Net transfers |
249,625 | 2,787,680 | 201,332 | (18,413 | ) | (30,101 | ) | |||||||||||||||||||||||
Contract maintenance charges |
(5,750 | ) | (3,326 | ) | (337 | ) | (364 | ) | (30 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
106,062 | 2,748,622 | 135,136 | (9,482 | ) | (30,420 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total increase (decrease) in net assets |
(645,755 | ) | 3,469,483 | (138,544 | ) | 151,062 | (28,663 | ) | ||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||
Beginning of period |
6,558,692 | 3,089,209 | 1,694,938 | 1,543,876 | 28,663 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
End of period |
$ | 5,912,937 | $ | 6,558,692 | $ | 1,556,394 | $ | 1,694,938 | $ | 0 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||
Units issued |
19,476 | 140,009 | 12,963 | 6,924 | 2 | |||||||||||||||||||||||||
Units redeemed |
(15,298 | ) | (16,293 | ) | (6,985 | ) | (7,355 | ) | (1,005 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Net increase (decrease) |
4,178 | 123,716 | 5,978 | (431 | ) | (1,003 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
(1) For the period January 1, 2017 to August 4, 2017. |
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||
FEDERATED KAUFMANN FUND II | FIDELITY VIP CONTRAFUND PORTFOLIO | FIDELITY VIP GROWTH PORTFOLIO | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | $ | $ | 12,939 | $ | 20,819 | $ | 356 | $ | 938 | ||||||||||||||||||||||||||
Net realized gain (loss) on investments |
12,821 | 8,523 | 292,107 | 228,242 | 115,094 | 104,855 | ||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(8,023 | ) | 12,046 | (495,777 | ) | 248,663 | (127,070 | ) | 195,072 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
4,798 | 20,569 | (190,731 | ) | 497,724 | (11,620 | ) | 300,865 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
15,645 | 57,519 | ||||||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(2,167 | ) | (1,156 | ) | (67,648 | ) | (47,711 | ) | (206,305 | ) | (39,426 | ) | ||||||||||||||||||||||||
Net transfers |
5,653 | 52,099 | 32,398 | 29,212 | 166,437 | (422,435 | ) | |||||||||||||||||||||||||||||
Contract maintenance charges |
(184 | ) | (105 | ) | (1,403 | ) | (1,149 | ) | (447 | ) | (526 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
3,302 | 50,838 | (21,008 | ) | 37,871 | (40,315 | ) | (462,387 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
8,100 | 71,407 | (211,739 | ) | 535,595 | (51,935 | ) | (161,522 | ) | |||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
136,238 | 64,831 | 2,871,987 | 2,336,392 | 790,607 | 952,129 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
End of period |
$ | 144,338 | $ | 136,238 | $ | 2,660,248 | $ | 2,871,987 | $ | 738,672 | $ | 790,607 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
558 | 5,193 | 6,918 | 14,778 | 9,677 | 4,997 | ||||||||||||||||||||||||||||||
Units redeemed |
(451 | ) | (3,126 | ) | (7,561 | ) | (13,888 | ) | (11,769 | ) | (26,168 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
107 | 2,067 | (643 | ) | 890 | (2,092 | ) | (21,171 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||
FIDELITY VIP INVESTMENT GRADE BOND PORTFOLIO |
FIDELITY VIP MID CAP PORTFOLIO | GOLDMAN SACHS VIT MID CAP VALUE FUND | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 12,042 | $ | 12,048 | $ | 4,188 | $ | 4,296 | $ | 678 | $ | 149 | ||||||||||||||||||||||||
Net realized gain (loss) on investments |
(4,295 | ) | 4,915 | 89,299 | 32,802 | 6,166 | 1,472 | |||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(12,951 | ) | 8,340 | (253,140 | ) | 129,091 | (12,967 | ) | 26 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(5,204 | ) | 25,303 | (159,653 | ) | 166,189 | (6,123 | ) | 1,647 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
39,171 | 86,713 | 330 | 100 | ||||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(237,353 | ) | (45,446 | ) | (221,614 | ) | (23,930 | ) | (736 | ) | (414 | ) | ||||||||||||||||||||||||
Net transfers |
27,317 | (276,758 | ) | 275,312 | (240,902 | ) | 30,483 | 9,391 | ||||||||||||||||||||||||||||
Contract maintenance charges |
(433 | ) | (450 | ) | (473 | ) | (358 | ) | (25 | ) | (20 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
(210,469 | ) | (322,654 | ) | 92,396 | (178,477 | ) | 30,052 | 9,057 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
(215,673 | ) | (297,351 | ) | (67,257 | ) | (12,288 | ) | 23,929 | 10,704 | ||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
496,134 | 793,485 | 952,385 | 964,673 | 20,908 | 10,204 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
End of period |
$ | 280,461 | $ | 496,134 | $ | 885,128 | $ | 952,385 | $ | 44,837 | $ | 20,908 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
2,636 | 4,963 | 6,673 | 2,411 | 2,185 | 1,375 | ||||||||||||||||||||||||||||||
Units redeemed |
(12,466 | ) | (20,116 | ) | (5,110 | ) | (6,229 | ) | (280 | ) | (750 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
(9,830 | ) | (15,153 | ) | 1,563 | (3,818 | ) | 1,905 | 625 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||
GREAT-WEST AGGRESSIVE PROFILE FUND | GREAT-WEST AGGRESSIVE PROFILE I FUND |
GREAT-WEST ARIEL MID CAP VALUE FUND | ||||||||||||||||||||||||||||
2018 | 2017 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||
(1) | (2) | |||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 29,520 | $ | 13,942 | $ | $ | 3,006 | $ | 11,262 | |||||||||||||||||||||
Net realized gain (loss) on investments |
136,010 | 43,782 | 15,528 | (19,466 | ) | 38,356 | ||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(294,737 | ) | 8,508 | 36,780 | (48,351 | ) | 20,577 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(129,207 | ) | 66,232 | 52,308 | (64,811 | ) | 70,195 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||
Purchase payments received |
241,442 | 4,600 | 248,324 | |||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(32,697 | ) | (5,704 | ) | (33,458 | ) | (191,148 | ) | (36,495 | ) | ||||||||||||||||||||
Net transfers |
339,007 | 600,854 | (779,393 | ) | 54,777 | (230,541 | ) | |||||||||||||||||||||||
Contract maintenance charges |
(680 | ) | (264 | ) | (360 | ) | (485 | ) | (689 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
547,072 | 599,486 | (564,887 | ) | (136,856 | ) | (267,725 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total increase (decrease) in net assets |
417,865 | 665,718 | (512,579 | ) | (201,667 | ) | (197,530 | ) | ||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||
Beginning of period |
665,718 | 0 | 512,579 | 398,480 | 596,010 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
End of period |
$ | 1,083,583 | $ | 665,718 | $ | 0 | $ | 196,813 | $ | 398,480 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||
Units issued |
53,417 | 73,871 | 15,852 | 1,235 | 1,584 | |||||||||||||||||||||||||
Units redeemed |
(5,214 | ) | (14,852 | ) | (37,800 | ) | (4,459 | ) | (7,072 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Net increase (decrease) |
48,203 | 59,019 | (21,948 | ) | (3,224 | ) | (5,488 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
(1) For the period July 11, 2017 to December 31, 2017. |
|
|||||||||||||||||||||||||||||
(2) For the period January 1, 2017 to July 11, 2017. |
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||
GREAT-WEST BOND INDEX FUND | GREAT-WEST CONSERVATIVE PROFILE FUND |
GREAT-WEST CONSERVATIVE PROFILE I FUND | ||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2017 | ||||||||||||||||||||||||||
(1) | (2) | |||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 26,744 | $ | 21,153 | $ | 13,422 | $ | 1,657 | $ | |||||||||||||||||||||
Net realized gain (loss) on investments |
(5,723 | ) | (686 | ) | 13,557 | 2,225 | (664 | ) | ||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(31,012 | ) | 40,210 | (25,786 | ) | 102 | 7,529 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(9,991 | ) | 60,677 | 1,193 | 3,984 | 6,865 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||
Purchase payments received |
5,189 | 11,488 | 19,132 | 1,307 | 38,005 | |||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(99,955 | ) | (25,975 | ) | (4,299 | ) | (15,446 | ) | (205,955 | ) | ||||||||||||||||||||
Net transfers |
11,412 | 62,083 | 680,483 | 105,997 | (207,541 | ) | ||||||||||||||||||||||||
Contract maintenance charges |
(745 | ) | (837 | ) | (53 | ) | (31 | ) | (85 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
(84,099 | ) | 46,759 | 695,263 | 91,827 | (375,576 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total increase (decrease) in net assets |
(94,090 | ) | 107,436 | 696,456 | 95,811 | (368,711 | ) | |||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||
Beginning of period |
2,070,084 | 1,962,648 | 95,811 | 0 | 368,711 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
End of period |
$ | 1,975,994 | $ | 2,070,084 | $ | 792,267 | $ | 95,811 | $ | 0 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||
Units issued |
7,989 | 7,861 | 70,154 | 14,609 | 2,035 | |||||||||||||||||||||||||
Units redeemed |
(14,011 | ) | (4,538 | ) | (872 | ) | (5,418 | ) | (18,426 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Net increase (decrease) |
(6,022 | ) | 3,323 | 69,282 | 9,191 | (16,391 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
(1) For the period May 12, 2017 to December 31, 2017. |
|
|||||||||||||||||||||||||||||
(2) For the period January 1, 2017 to July 11, 2017. |
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||
GREAT-WEST CORE BOND FUND | GREAT-WEST EMERGING MARKETS EQUITY FUND |
GREAT-WEST GLOBAL BOND FUND | ||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2018 | 2017 | ||||||||||||||||||||||||||
(1) | ||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 56,265 | $ | 46,068 | $ | 17 | $ | 121,094 | $ | 83,713 | ||||||||||||||||||||
Net realized gain (loss) on investments |
(1,495 | ) | (1,536 | ) | (103,385 | ) | (31,538 | ) | ||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(83,114 | ) | 46,125 | 32 | (21,154 | ) | 31,251 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(28,344 | ) | 90,657 | 49 | (3,445 | ) | 83,426 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||
Purchase payments received |
7,787 | 5,893 | 346,658 | 364,555 | ||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(26,542 | ) | (25,469 | ) | (139,375 | ) | (82,332 | ) | ||||||||||||||||||||||
Net transfers |
66,125 | (44,295 | ) | 2,036 | (443,735 | ) | 402,191 | |||||||||||||||||||||||
Contract maintenance charges |
(105 | ) | (106 | ) | (1,444 | ) | (1,561 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
47,265 | (63,977 | ) | 2,036 | (237,896 | ) | 682,853 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total increase (decrease) in net assets |
18,921 | 26,680 | 2,085 | (241,341 | ) | 766,279 | ||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||
Beginning of period |
2,375,540 | 2,348,860 | 0 | 5,014,169 | 4,247,890 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
End of period |
$ | 2,394,461 | $ | 2,375,540 | $ | 2,085 | $ | 4,772,828 | $ | 5,014,169 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||
Units issued |
6,239 | 1,163 | 253 | 39,330 | 68,439 | |||||||||||||||||||||||||
Units redeemed |
(2,930 | ) | (5,618 | ) | (55,358 | ) | (20,458 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Net increase (decrease) |
3,309 | (4,455 | ) | 253 | (16,028 | ) | 47,981 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
(1) For the period December 24, 2018 to December 31, 2018. |
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||
GREAT-WEST GOVERNMENT MONEY
MARKET FUND |
GREAT-WEST INTERNATIONAL INDEX FUND | GREAT-WEST INTERNATIONAL VALUE
FUND | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 145,671 | $ | 46,298 | $ | 1,103 | $ | 942 | $ | 72,240 | $ | 40,453 | ||||||||||||||||||||||||
Net realized gain (loss) on investments |
1,020 | 1,847 | 1,044,834 | 188,515 | ||||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(9,242 | ) | 6,383 | (2,000,998 | ) | 687,336 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
145,671 | 46,298 | (7,119 | ) | 9,172 | (883,924 | ) | 916,304 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
5,705,272 | 5,214,202 | 1,034 | 4,180 | 89,305 | 65,526 | ||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(730,178 | ) | (1,893,911 | ) | (650 | ) | (7,847 | ) | (60,859 | ) | (52,415 | ) | ||||||||||||||||||||||||
Net transfers |
(7,257,195 | ) | (5,717,936 | ) | 11,544 | 39,811 | 1,686,700 | (260,122 | ) | |||||||||||||||||||||||||||
Contract maintenance charges |
(8,130 | ) | (14,927 | ) | (26 | ) | (28 | ) | (1,829 | ) | (1,324 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
(2,290,231 | ) | (2,412,572 | ) | 11,902 | 36,116 | 1,713,317 | (248,335 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
(2,144,560 | ) | (2,366,274 | ) | 4,783 | 45,288 | 829,393 | 667,969 | ||||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
10,836,733 | 13,203,007 | 49,381 | 4,093 | 4,235,009 | 3,567,040 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
End of period |
$ | 8,692,173 | $ | 10,836,733 | $ | 54,164 | $ | 49,381 | $ | 5,064,402 | $ | 4,235,009 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
740,238 | 700,013 | 1,262 | 4,515 | 143,640 | 32,477 | ||||||||||||||||||||||||||||||
Units redeemed |
(913,478 | ) | (885,225 | ) | (220 | ) | (1,094 | ) | (15,506 | ) | (52,533 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
(173,240 | ) | (185,212 | ) | 1,042 | 3,421 | 128,134 | (20,056 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||
GREAT-WEST LARGE CAP GROWTH FUND | GREAT-WEST LIFETIME 2015 FUND | GREAT-WEST LIFETIME 2020 FUND | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
(1) | ||||||||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 551 | $ | 1,517 | $ | 33,724 | $ | 8,454 | $ | 12,767 | $ | 1,951 | ||||||||||||||||||||||||
Net realized gain (loss) on investments |
55,387 | 13,147 | 75,121 | 19,099 | 13,395 | 1,252 | ||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(57,932 | ) | 34,888 | (194,154 | ) | 15,349 | (59,202 | ) | 1,633 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(1,994 | ) | 49,552 | (85,309 | ) | 42,902 | (33,040 | ) | 4,836 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
16,706 | 21,829 | 519,256 | 486,821 | 56,964 | 35,199 | ||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(80,141 | ) | (6,200 | ) | (74,373 | ) | (32,730 | ) | (11,530 | ) | (2,812 | ) | ||||||||||||||||||||||||
Net transfers |
48,994 | 564,487 | (1 | ) | 362,936 | 31,941 | ||||||||||||||||||||||||||||||
Contract maintenance charges |
(81 | ) | (85 | ) | (676 | ) | (322 | ) | (857 | ) | (32 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
(14,522 | ) | 15,544 | 1,008,694 | 453,768 | 407,513 | 64,296 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
(16,516 | ) | 65,096 | 923,385 | 496,670 | 374,473 | 69,132 | |||||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
223,566 | 158,470 | 723,613 | 226,943 | 69,132 | 0 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
End of period |
$ | 207,050 | $ | 223,566 | $ | 1,646,998 | $ | 723,613 | $ | 443,605 | $ | 69,132 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
2,171 | 797 | 107,204 | 43,732 | 36,822 | 8,344 | ||||||||||||||||||||||||||||||
Units redeemed |
(2,699 | ) | (242 | ) | (20,963 | ) | (3,055 | ) | (3,096 | ) | (2,479 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
(528 | ) | 555 | 86,241 | 40,677 | 33,726 | 5,865 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(1) For the period January 30, 2017 to December 31, 2017. |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||
GREAT-WEST LIFETIME 2025 FUND | GREAT-WEST LIFETIME 2030 FUND | GREAT-WEST LIFETIME 2035 FUND | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 47,013 | $ | 27,016 | $ | 32,549 | $ | 23,076 | $ | 26,457 | $ | 8,546 | ||||||||||||||||||||||||
Net realized gain (loss) on investments |
161,078 | 67,998 | 48,108 | 7,194 | 140,089 | 25,714 | ||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(337,308 | ) | 79,203 | (180,929 | ) | 37,018 | (320,459 | ) | 30,524 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(129,217 | ) | 174,217 | (100,272 | ) | 67,288 | (153,913 | ) | 64,784 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
578,318 | 565,322 | 230,644 | 401,266 | 359,831 | 194,219 | ||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(62,561 | ) | (42,485 | ) | (30,531 | ) | (31,133 | ) | (34,486 | ) | (13,842 | ) | ||||||||||||||||||||||||
Net transfers |
(31,187 | ) | 208,685 | 293,127 | 289,485 | 826,873 | 58,459 | |||||||||||||||||||||||||||||
Contract maintenance charges |
(1,830 | ) | (1,210 | ) | (1,663 | ) | (607 | ) | (1,128 | ) | (423 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
482,740 | 730,312 | 491,577 | 659,011 | 1,151,090 | 238,413 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
353,523 | 904,529 | 391,305 | 726,299 | 997,177 | 303,197 | ||||||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
1,805,857 | 901,328 | 819,623 | 93,324 | 551,907 | 248,710 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
End of period |
$ | 2,159,380 | $ | 1,805,857 | $ | 1,210,928 | $ | 819,623 | $ | 1,549,084 | $ | 551,907 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
82,570 | 69,756 | 41,681 | 60,717 | 102,067 | 23,116 | ||||||||||||||||||||||||||||||
Units redeemed |
(42,141 | ) | (4,955 | ) | (2,843 | ) | (3,024 | ) | (12,012 | ) | (2,582 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
40,429 | 64,801 | 38,838 | 57,693 | 90,055 | 20,534 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||
GREAT-WEST LIFETIME 2040 FUND | GREAT-WEST LIFETIME 2045 FUND | GREAT-WEST LIFETIME 2050 FUND | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
(1) | ||||||||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 18,311 | $ | 19,447 | $ | 8,370 | $ | 5,140 | $ | 6,679 | $ | 6,057 | ||||||||||||||||||||||||
Net realized gain (loss) on investments |
21,512 | 19,729 | 53,073 | 19,302 | 11,983 | 1,969 | ||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(115,822 | ) | 15,456 | (107,438 | ) | 21,325 | (44,541 | ) | 18,983 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(75,999 | ) | 54,632 | (45,995 | ) | 45,767 | (25,879 | ) | 27,009 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
56,472 | 96,965 | 70,211 | 25,726 | 6,916 | |||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(15,220 | ) | (12,194 | ) | (44,485 | ) | (6,341 | ) | (2,904 | ) | (2,328 | ) | ||||||||||||||||||||||||
Net transfers |
138,819 | 250,022 | 170,516 | 134,161 | 61,304 | 164,200 | ||||||||||||||||||||||||||||||
Contract maintenance charges |
(814 | ) | (350 | ) | (1,321 | ) | (386 | ) | (94 | ) | (65 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
179,257 | 334,443 | 194,921 | 153,160 | 58,306 | 168,723 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
103,258 | 389,075 | 148,926 | 198,927 | 32,427 | 195,732 | ||||||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
476,581 | 87,506 | 336,780 | 137,853 | 195,732 | 0 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
End of period |
$ | 579,839 | $ | 476,581 | $ | 485,706 | $ | 336,780 | $ | 228,159 | $ | 195,732 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
21,835 | 43,847 | 24,263 | 19,037 | 5,565 | 15,416 | ||||||||||||||||||||||||||||||
Units redeemed |
(9,422 | ) | (14,785 | ) | (8,710 | ) | (5,696 | ) | (1,193 | ) | (268 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
12,413 | 29,062 | 15,553 | 13,341 | 4,372 | 15,148 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(1) For the period January 30, 2017 to December 31, 2017. |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
|
INVESTMENT DIVISIONS | |||||||||||||||||||||||||||||||||||
GREAT-WEST LIFETIME 2055 FUND | GREAT-WEST LOOMIS SAYLES SMALL CAP
VALUE FUND |
GREAT-WEST MID CAP VALUE FUND | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 2,833 | $ | 2,181 | $ | $ | 604 | $ | 4,123 | $ | 3,897 | |||||||||||||||||||||||||
Net realized gain (loss) on investments |
13,563 | 5,468 | 22,747 | 56,945 | 2,357 | 1,965 | ||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(35,180 | ) | 14,247 | (161,852 | ) | 19,957 | (16,628 | ) | (630 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(18,784 | ) | 21,896 | (139,105 | ) | 77,506 | (10,148 | ) | 5,232 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
22,128 | 21,123 | 22,064 | 14,593 | 45,434 | 25,157 | ||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(3,293 | ) | (2,533 | ) | (11,718 | ) | (11,510 | ) | (4,309 | ) | (1,932 | ) | ||||||||||||||||||||||||
Net transfers |
29,854 | 47,218 | 53,650 | 16,197 | 251 | 21,068 | ||||||||||||||||||||||||||||||
Contract maintenance charges |
(200 | ) | (118 | ) | (253 | ) | (299 | ) | (43 | ) | (34 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
48,489 | 65,690 | 63,743 | 18,981 | 41,333 | 44,259 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
29,705 | 87,586 | (75,362 | ) | 96,487 | 31,185 | 49,491 | |||||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
143,256 | 55,670 | 831,155 | 734,668 | 50,188 | 697 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
End of period |
$ | 172,961 | $ | 143,256 | $ | 755,793 | $ | 831,155 | $ | 81,373 | $ | 50,188 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
4,308 | 6,297 | 3,940 | 3,903 | 3,715 | 3,904 | ||||||||||||||||||||||||||||||
Units redeemed |
(536 | ) | (374 | ) | (2,252 | ) | (3,307 | ) | (490 | ) | (167 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
3,772 | 5,923 | 1,688 | 596 | 3,225 | 3,737 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||
GREAT-WEST MODERATE PROFILE FUND | GREAT-WEST MODERATE PROFILE I FUND |
GREAT-WEST MODERATELY AGGRESSIVE PROFILE FUND |
GREAT-WEST MODERATELY AGGRESSIVE PROFILE I FUND | |||||||||||||||||||||||||||||||||
2018 | 2017 | 2017 | 2018 | 2017 | 2017 | |||||||||||||||||||||||||||||||
(1) | (2) | (1) | (2) | |||||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 8,151 | $ | 2,440 | $ | $ | 2,168 | $ | 610 | $ | ||||||||||||||||||||||||||
Net realized gain (loss) on investments |
17,643 | 8,210 | 2,384 | 6,291 | 3,328 | 1,176 | ||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(44,833 | ) | (259 | ) | 12,673 | (15,179 | ) | 123 | 4,423 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(19,039 | ) | 10,391 | 15,057 | (6,720 | ) | 4,061 | 5,599 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
53,000 | 19,910 | 16,265 | 9,030 | 2,780 | 4,209 | ||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(16,473 | ) | (2,582 | ) | (34,777 | ) | (4,377 | ) | (611 | ) | (969 | ) | ||||||||||||||||||||||||
Net transfers |
199,206 | 39,121 | (266,977 | ) | 59,678 | 13,457 | (75,032 | ) | ||||||||||||||||||||||||||||
Contract maintenance charges |
(227 | ) | (98 | ) | (132 | ) | (69 | ) | (32 | ) | (38 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
235,506 | 56,351 | (285,621 | ) | 64,262 | 15,594 | (71,830 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
216,467 | 66,742 | (270,564 | ) | 57,542 | 19,655 | (66,231 | ) | ||||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
66,742 | 0 | 270,564 | 19,655 | 0 | 66,231 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
End of period |
$ | 283,209 | $ | 66,742 | $ | 0 | $ | 77,197 | $ | 19,655 | $ | 0 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
26,528 | 25,727 | 3,000 | 6,938 | 9,098 | 712 | ||||||||||||||||||||||||||||||
Units redeemed |
(4,714 | ) | (19,546 | ) | (14,564 | ) | (1,100 | ) | (7,303 | ) | (3,551 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
21,814 | 6,181 | (11,564 | ) | 5,838 | 1,795 | (2,839 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(1) For the period July 11, 2017 to December 31, 2017. |
||||||||||||||||||||||||||||||||||||
(2) For the period January 1, 2017 to July 31, 2017. |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||
GREAT-WEST MODERATELY CONSERVATIVE PROFILE FUND |
GREAT-WEST MODERATELY CONSERVATIVE PROFILE I FUND |
GREAT-WEST MULTI-SECTOR BOND FUND | ||||||||||||||||||||||||||||
2018 | 2017 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||
(1) | (2) | |||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 2,445 | $ | 895 | $ | $ | 14,683 | $ | 10,038 | |||||||||||||||||||||
Net realized gain (loss) on investments |
3,783 | 1,831 | 2,726 | 9,688 | (19,203 | ) | ||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(11,164 | ) | 279 | (374 | ) | (45,222 | ) | 47,567 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(4,936 | ) | 3,005 | 2,352 | (20,851 | ) | 38,402 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||
Purchase payments received |
3,000 | 4,163 | 9,902 | 93,852 | 122,177 | |||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(2,678 | ) | (903 | ) | (1,364 | ) | (141,974 | ) | (277,759 | ) | ||||||||||||||||||||
Net transfers |
38,088 | 47,687 | (40,999 | ) | 3,042 | (98,868 | ) | |||||||||||||||||||||||
Contract maintenance charges |
(50 | ) | (24 | ) | (28 | ) | (384 | ) | (394 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
38,360 | 50,923 | (32,489 | ) | (45,464 | ) | (254,844 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total increase (decrease) in net assets |
33,424 | 53,928 | (30,137 | ) | (66,315 | ) | (216,442 | ) | ||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||
Beginning of period |
53,928 | 0 | 30,137 | 573,196 | 789,638 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
End of period |
$ | 87,352 | $ | 53,928 | $ | 0 | $ | 506,881 | $ | 573,196 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||
Units issued |
4,153 | 7,730 | 1,890 | 3,246 | 4,000 | |||||||||||||||||||||||||
Units redeemed |
(593 | ) | (2,645 | ) | (3,220 | ) | (4,523 | ) | (10,780 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Net increase (decrease) |
3,560 | 5,085 | (1,330 | ) | (1,277 | ) | (6,780 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
(1) For the period January 30, 2017 to December 31, 2017. |
|
|||||||||||||||||||||||||||||
(2) For the period January 1, 2017 to July 31, 2017. |
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||||||||
GREAT-WEST REAL ESTATE INDEX FUND | GREAT-WEST S&P MID CAP 400® INDEX
FUND |
GREAT-WEST S&P SMALL CAP 600® INDEX FUND | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
(1) | ||||||||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 2,720 | $ | 455 | $ | 9,869 | $ | 6,073 | $ | 2,053 | $ | 2,185 | ||||||||||||||||||||||||
Net realized gain (loss) on investments |
3,765 | 2,088 | 106,151 | 58,268 | 1,328 | 16,024 | ||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(19,266 | ) | (386 | ) | (323,188 | ) | 71,457 | (19,264 | ) | (2,304 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(12,781 | ) | 2,157 | (207,168 | ) | 135,798 | (15,883 | ) | 15,905 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
31,766 | 13,533 | 69,447 | 33,473 | ||||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(2,936 | ) | (1,387 | ) | (22,887 | ) | (15,753 | ) | (143,890 | ) | (21,874 | ) | ||||||||||||||||||||||||
Net transfers |
115,920 | 48,531 | 408,350 | 567,485 | 32,220 | 19,126 | ||||||||||||||||||||||||||||||
Contract maintenance charges |
(46 | ) | (23 | ) | (700 | ) | (590 | ) | (243 | ) | (191 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
144,704 | 60,654 | 454,210 | 584,615 | (111,913 | ) | (2,939 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
131,923 | 62,811 | 247,042 | 720,413 | (127,796 | ) | 12,966 | |||||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
62,811 | 0 | 1,140,631 | 420,218 | 141,874 | 128,908 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
End of period |
$ | 194,734 | $ | 62,811 | $ | 1,387,673 | $ | 1,140,631 | $ | 14,078 | $ | 141,874 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
12,227 | 5,071 | 33,469 | 43,847 | 2,299 | 1,951 | ||||||||||||||||||||||||||||||
Units redeemed |
(1,432 | ) | (292 | ) | (8,932 | ) | (6,360 | ) | (10,685 | ) | (2,184 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
10,795 | 4,779 | 24,537 | 37,487 | (8,386 | ) | (233 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(1) For the period January 30, 2017 to December 31, 2017. |
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||||
GREAT-WEST SHORT DURATION BOND
FUND |
GREAT-WEST SMALL CAP GROWTH FUND |
GREAT-WEST T. ROWE PRICE EQUITY
INCOME FUND | ||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2018 | 2017 | ||||||||||||||||||||||||||
(1) | ||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 143,678 | $ | 92,435 | $ | $ | 5,154 | $ | 14,624 | |||||||||||||||||||||
Net realized gain (loss) on investments |
(11,424 | ) | 738 | 2,882 | 103,035 | 79,995 | ||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(89,020 | ) | 52,048 | (272,081 | ) | 156,687 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Increase (decrease) in net assets resulting from operations |
43,234 | 145,221 | 2,882 | (163,892 | ) | 251,306 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||
Purchase payments received |
310,155 | 333,886 | 13,015 | 13,271 | ||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(181,394 | ) | (104,636 | ) | (150 | ) | (21,707 | ) | (21,920 | ) | ||||||||||||||||||||
Net transfers |
(2,113,095 | ) | 1,978,489 | (2,727 | ) | 42,356 | (20,493 | ) | ||||||||||||||||||||||
Contract maintenance charges |
(2,040 | ) | (2,224 | ) | (5 | ) | (330 | ) | (366 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
(1,986,374 | ) | 2,205,515 | (2,882 | ) | 33,334 | (29,508 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total increase (decrease) in net assets |
(1,943,140 | ) | 2,350,736 | 0 | (130,558 | ) | 221,798 | |||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||
Beginning of period |
9,588,374 | 7,237,638 | 0 | 1,755,157 | 1,533,359 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
End of period |
$ | 7,645,234 | $ | 9,588,374 | $ | 0 | $ | 1,624,599 | $ | 1,755,157 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||
Units issued |
57,670 | 172,554 | 7,772 | 4,740 | 4,421 | |||||||||||||||||||||||||
Units redeemed |
(199,743 | ) | (14,922 | ) | (7,772 | ) | (3,375 | ) | (5,333 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Net increase (decrease) |
(142,073 | ) | 157,632 | 0 | 1,365 | (912 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
(1) For the period June 11, 2018 to July 13, 2018. |
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||
GREAT-WEST T. ROWE PRICE MID CAP
GROWTH FUND |
GREAT-WEST U.S. GOVERNMENT
SECURITIES FUND |
INVESCO V.I. CORE EQUITY FUND | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 3,399 | $ | 10,024 | $ | 63,321 | $ | 49,214 | $ | 1,646 | $ | 1,606 | ||||||||||||||||||||||||
Net realized gain (loss) on investments |
377,686 | 260,050 | (37,973 | ) | (16,297 | ) | (17,949 | ) | 6,060 | |||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(428,922 | ) | 371,206 | (11,748 | ) | 48,751 | (1,664 | ) | 12,791 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(47,837 | ) | 641,280 | 13,600 | 81,668 | (17,967 | ) | 20,457 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
297,046 | 293,618 | 1 | |||||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(101,006 | ) | (742,652 | ) | (455,239 | ) | (155,168 | ) | (147,837 | ) | (26,511 | ) | ||||||||||||||||||||||||
Net transfers |
495,339 | (78,063 | ) | (160,502 | ) | (198,539 | ) | 25,447 | 19,145 | |||||||||||||||||||||||||||
Contract maintenance charges |
(1,719 | ) | (1,680 | ) | (1,229 | ) | (1,615 | ) | (249 | ) | (212 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
689,660 | (528,777 | ) | (616,970 | ) | (355,321 | ) | (122,639 | ) | (7,578 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
641,823 | 112,503 | (603,370 | ) | (273,653 | ) | (140,606 | ) | 12,879 | |||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
3,121,151 | 3,008,648 | 3,567,175 | 3,840,828 | 159,994 | 147,115 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
End of period |
$ | 3,762,974 | $ | 3,121,151 | $ | 2,963,805 | $ | 3,567,175 | $ | 19,388 | $ | 159,994 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
36,970 | 20,526 | 1,514 | 2,798 | 1,135 | 1,249 | ||||||||||||||||||||||||||||||
Units redeemed |
(20,131 | ) | (34,858 | ) | (29,513 | ) | (19,072 | ) | (7,016 | ) | (1,525 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
16,839 | (14,332 | ) | (27,999 | ) | (16,274 | ) | (5,881 | ) | (276 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS |
||||||||||||||||||||||||||||
INVESCO
V.I. |
INVESCO V.I. GLOBAL REAL ESTATE FUND | INVESCO V.I. HEALTH CARE FUND | ||||||||||||||||||||||||||
2017 |
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||
(1) | ||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||
Net investment income (loss) |
$ | $ | 60,962 | $ | 51,523 | $ | $ | 427 | ||||||||||||||||||||
Net realized gain (loss) on investments |
31,555 | 28,727 | 11,449 | (16,791 | ) | |||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(191,911 | ) | 114,799 | (10,473 | ) | 33,271 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Increase (decrease) in net assets resulting from operations |
0 | (99,394 | ) | 195,049 | 976 | 16,907 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||
Purchase payments received |
11,496 | 23,697 | ||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(4) | (49,401 | ) | (22,497 | ) | (1,091 | ) | (1,499 | ) | |||||||||||||||||||
Net transfers |
(104,443 | ) | 23,768 | (7,052 | ) | (38,991 | ) | |||||||||||||||||||||
Contract maintenance charges |
(430 | ) | (450 | ) | (100 | ) | (154 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
(4) | (142,778 | ) | 24,518 | (8,243 | ) | (40,644 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total increase (decrease) in net assets |
(4) | (242,172 | ) | 219,567 | (7,267 | ) | (23,737 | ) | ||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||
Beginning of period |
4 | 1,713,216 | 1,493,649 | 88,372 | 112,109 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
End of period |
$ | 0 | $ | 1,471,044 | $ | 1,713,216 | $ | 81,105 | $ | 88,372 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||
Units issued |
2,264 | 1,887 | 31 | 1,799 | ||||||||||||||||||||||||
Units redeemed |
(5,968 | ) | (1,260 | ) | (293 | ) | (3,161 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Net increase (decrease) |
0 | (3,704 | ) | 627 | (262 | ) | (1,362 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
(1) For the period January 1, 2017 to January 2, 2017. |
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||
INVESCO V.I. INTERNATIONAL GROWTH FUND |
INVESCO V.I. MID CAP CORE EQUITY FUND | INVESCO V.I. TECHNOLOGY FUND | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 73,520 | $ | 45,965 | $ | 1,153 | $ | 916 | $ | $ | ||||||||||||||||||||||||||
Net realized gain (loss) on investments |
64,204 | 56,213 | 31,271 | 23,871 | 19,848 | 15,853 | ||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(673,676 | ) | 538,854 | (58,430 | ) | 13,686 | (16,559 | ) | 37,969 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(535,952 | ) | 641,032 | (26,006 | ) | 38,473 | 3,289 | 53,822 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
47,661 | 73,103 | 1 | |||||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(59,548 | ) | (43,586 | ) | (1,895 | ) | (10,418 | ) | (2,021 | ) | (2,358 | ) | ||||||||||||||||||||||||
Net transfers |
217,646 | (17,034 | ) | 44,394 | (260,470 | ) | (41,043 | ) | (53,234 | ) | ||||||||||||||||||||||||||
Contract maintenance charges |
(1,095 | ) | (1,100 | ) | (121 | ) | (112 | ) | (188 | ) | (242 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
204,664 | 11,383 | 42,378 | (270,999 | ) | (43,252 | ) | (55,834 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
(331,288 | ) | 652,415 | 16,372 | (232,526 | ) | (39,963 | ) | (2,012 | ) | ||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
3,431,746 | 2,779,331 | 179,809 | 412,335 | 169,423 | 171,435 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
End of period |
$ | 3,100,458 | $ | 3,431,746 | $ | 196,181 | $ | 179,809 | $ | 129,460 | $ | 169,423 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
26,618 | 23,130 | 2,586 | 4,042 | 98 | 2,031 | ||||||||||||||||||||||||||||||
Units redeemed |
(14,637 | ) | (22,397 | ) | (954 | ) | (15,611 | ) | (1,691 | ) | (4,548 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
11,981 | 733 | 1,632 | (11,569 | ) | (1,593 | ) | (2,517 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||
JANUS HENDERSON VIT BALANCED
|
JANUS HENDERSON VIT FLEXIBLE BOND
PORTFOLIO |
JANUS HENDERSON VIT FORTY PORTFOLIO | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 46,506 | $ | 29,410 | $ | 58,472 | $ | 63,017 | $ | 39,393 | $ | |||||||||||||||||||||||||
Net realized gain (loss) on investments |
194,837 | 59,481 | (68,879 | ) | (24,694 | ) | 697,113 | 483,142 | ||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(240,131 | ) | 212,693 | 2,799 | 43,380 | (658,232 | ) | 361,454 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
1,212 | 301,584 | (7,608 | ) | 81,703 | 78,274 | 844,596 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
342,161 | 300,167 | 103,001 | 102,679 | 83,210 | 69,458 | ||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(128,529 | ) | (54,076 | ) | (204,353 | ) | (57,760 | ) | (150,243 | ) | (69,366 | ) | ||||||||||||||||||||||||
Net transfers |
(306,594 | ) | 564,049 | 317,228 | (516,983 | ) | 516,133 | (2,340,257 | ) | |||||||||||||||||||||||||||
Contract maintenance charges |
(1,490 | ) | (1,112 | ) | (800 | ) | (1,127 | ) | (2,414 | ) | (3,535 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
(94,452 | ) | 809,028 | 215,076 | (473,191 | ) | 446,686 | (2,343,700 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
(93,240 | ) | 1,110,612 | 207,468 | (391,488 | ) | 524,960 | (1,499,104 | ) | |||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
2,293,664 | 1,183,052 | 1,597,452 | 1,988,940 | 1,731,815 | 3,230,919 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
End of period |
$ | 2,200,424 | $ | 2,293,664 | $ | 1,804,920 | $ | 1,597,452 | $ | 2,256,775 | $ | 1,731,815 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
30,951 | 51,874 | 66,110 | 32,349 | 41,613 | 9,308 | ||||||||||||||||||||||||||||||
Units redeemed |
(34,472 | ) | (22,815 | ) | (57,625 | ) | (49,770 | ) | (30,837 | ) | (64,826 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
(3,521 | ) | 29,059 | 8,485 | (17,421 | ) | 10,776 | (55,518 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||
JANUS HENDERSON VIT GLOBAL
RESEARCH |
JANUS HENDERSON VIT GLOBAL
TECHNOLOGY PORTFOLIO |
JANUS HENDERSON VIT OVERSEAS
PORTFOLIO | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 9,779 | $ | 6,453 | $ | 7,427 | $ | 1,293 | $ | 1,016 | $ | 897 | ||||||||||||||||||||||||
Net realized gain (loss) on investments |
12,476 | 16,944 | 47,228 | 44,746 | (55 | ) | (2,864 | ) | ||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(79,514 | ) | 152,187 | (128,669 | ) | 46,427 | (9,656 | ) | 16,575 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(57,259 | ) | 175,584 | (74,014 | ) | 92,466 | (8,695 | ) | 14,608 | |||||||||||||||||||||||||||
|
|
|
|
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|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
94,558 | 71,609 | 1 | |||||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(38,891 | ) | (13,747 | ) | (17,151 | ) | (8,615 | ) | (1,036 | ) | (7,250 | ) | ||||||||||||||||||||||||
Net transfers |
53,965 | 23,740 | 584,949 | 64,782 | (4,309 | ) | ||||||||||||||||||||||||||||||
Contract maintenance charges |
(384 | ) | (395 | ) | (513 | ) | (291 | ) | (5 | ) | (5 | ) | ||||||||||||||||||||||||
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|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
14,690 | 9,598 | 661,843 | 127,485 | (1,041 | ) | (11,563 | ) | ||||||||||||||||||||||||||||
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|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
(42,569 | ) | 185,182 | 587,829 | 219,951 | (9,736 | ) | 3,045 | ||||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
799,875 | 614,693 | 333,933 | 113,982 | 59,094 | 56,049 | ||||||||||||||||||||||||||||||
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| |||||||||||||||||||
End of period |
$ | 757,306 | $ | 799,875 | $ | 921,762 | $ | 333,933 | $ | 49,358 | $ | 59,094 | ||||||||||||||||||||||||
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| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
7,320 | 19,147 | 15,675 | 6,129 | 5 | 5 | ||||||||||||||||||||||||||||||
Units redeemed |
(6,364 | ) | (17,775 | ) | (1,801 | ) | (2,076 | ) | (42 | ) | (500 | ) | ||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
956 | 1,372 | 13,874 | 4,053 | (37 | ) | (495 | ) | ||||||||||||||||||||||||||||
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|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||
JPMORGAN |
LORD ABBETT SERIES DEVELOPING
GROWTH PORTFOLIO |
MFS VIT III MID CAP
VALUE PORTFOLIO |
MFS VIT MID CAP
GROWTH SERIES | |||||||||||||||||||||||||||||
2017 | 2018 | 2017 | 2018 | 2018 | ||||||||||||||||||||||||||||
(1) | (2) | (2) | ||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Net realized gain (loss) on investments |
(11 | ) | 12,759 | 1,953 | ||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
19 | (16,088 | ) | 4,139 | 66 |
|
107 |
| ||||||||||||||||||||||||
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|
|
| ||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
8 | (3,329 | ) | 6,092 | 66 | 107 | ||||||||||||||||||||||||||
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| ||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||
Purchase payments received |
19 | |||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(13 | ) | (1,229 | ) | (630 | ) | ||||||||||||||||||||||||||
Net transfers |
(1,905 | ) | 57,891 | 1,261 | 2,390 | 2,213 | ||||||||||||||||||||||||||
Contract maintenance charges |
(2 | ) | (31 | ) | (23 | ) | ||||||||||||||||||||||||||
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|
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|
|
|
| ||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
(1,901 | ) | 56,631 | 608 | 2,390 | 2,213 | ||||||||||||||||||||||||||
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|
|
| ||||||||||||||||||
Total increase (decrease) in net assets |
(1,893 | ) | 53,302 | 6,700 | 2,456 | 2,320 | ||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||
Beginning of period |
1,893 | 27,219 | 20,519 | 0 | 0 | |||||||||||||||||||||||||||
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| ||||||||||||||||||
End of period |
$ | 0 | $ | 80,521 | $ | 27,219 | $ | 2,456 | $ | 2,320 | ||||||||||||||||||||||
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| ||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||
Units issued |
353 | 4,668 | 2,560 | 253 | 199 | |||||||||||||||||||||||||||
Units redeemed |
(538 | ) | (204 | ) | (2,509 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
Net increase (decrease) |
(185 | ) | 4,464 | 51 | 253 | 199 | ||||||||||||||||||||||||||
|
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|
|
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| ||||||||||||||||||
(1) For the period January 1, 2017 to April 18, 2017. |
||||||||||||||||||||||||||||||||
(2) For the period December 24, 2018 to December 31, 2018. |
||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||||
MFS VIT TOTAL RETURN BOND SERIES | MFS VIT VALUE SERIES |
NEUBERGER BERMAN AMT GUARDIAN
| ||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||||
(1) | ||||||||||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 29,640 | $ | 28,728 | $ | 6,032 | $ | 5,996 | $ | 544 | $ | 427 | ||||||||||||||||||||||||||
Net realized gain (loss) on investments |
(551 | ) | (89 | ) | 26,827 | 13,536 | (21,547 | ) | (8,915 | ) | ||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(38,366 | ) | (22,714 | ) | (72,178 | ) | 28,621 | 13,271 | 39,757 | |||||||||||||||||||||||||||||
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(9,277 | ) | 5,925 | (39,319 | ) | 48,153 | (7,732 | ) | 31,269 | |||||||||||||||||||||||||||||
|
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|
|
|
|
|
| |||||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||||
Purchase payments received |
1 | 21,056 | 4,051 | |||||||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(8,984 | ) | (2,830 | ) | (5,897 | ) | (3,846 | ) | (82,989 | ) | (21,098 | ) | ||||||||||||||||||||||||||
Net transfers |
60,443 | 863,158 | 43,386 | 118,888 | (28,035 | ) | (20,779 | ) | ||||||||||||||||||||||||||||||
Contract maintenance charges |
(442 | ) | (146 | ) | (283 | ) | (250 | ) | (144 | ) | (169 | ) | ||||||||||||||||||||||||||
|
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|
|
|
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
51,017 | 860,183 | 58,262 | 118,843 | (111,168 | ) | (42,046 | ) | ||||||||||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total increase (decrease) in net assets |
41,740 | 866,108 | 18,943 | 166,996 | (118,900 | ) | (10,777 | ) | ||||||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||||
Beginning of period |
866,108 | 0 | 337,190 | 170,194 | 138,268 | 149,045 | ||||||||||||||||||||||||||||||||
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|
| |||||||||||||||||||||
End of period |
$ | 907,848 | $ | 866,108 | $ | 356,133 | $ | 337,190 | $ | 19,368 | $ | 138,268 | ||||||||||||||||||||||||||
|
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|
|
|
|
| |||||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||||
Units issued |
6,206 | 84,925 | 5,705 | 12,644 | 99 | 207 | ||||||||||||||||||||||||||||||||
Units redeemed |
(1,158 | ) | (362 | ) | (1,198 | ) | (2,163 | ) | (3,923 | ) | (1,792 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Net increase (decrease) |
5,048 | 84,563 | 4,507 | 10,481 | (3,824 | ) | (1,585 | ) | ||||||||||||||||||||||||||||||
|
|
|
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|
|
|
|
| |||||||||||||||||||||
(1) For the period August 4, 2017 to December 31, 2017. |
||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||
NEUBERGER BERMAN AMT LARGE CAP VALUE PORTFOLIO |
NEUBERGER BERMAN AMT MID CAP GROWTH PORTFOLIO |
NEUBERGER BERMAN AMT MID CAP INTRINSIC VALUE PORTFOLIO | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 114 | $ | 75 | $ | $ | $ | 5,673 | $ | 11,322 | ||||||||||||||||||||||||||
Net realized gain (loss) on investments |
2,333 | 1,597 | 18,620 | (8,087 | ) | 179,038 | 54,068 | |||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(2,502 | ) | (12 | ) | (25,839 | ) | 51,094 | (296,631 | ) | 74,208 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(55 | ) | 1,660 | (7,219 | ) | 43,007 | (111,920 | ) | 139,598 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
1 | 13,213 | 24,278 | |||||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(4,253 | ) | (3,647 | ) | (91,319 | ) | (23,078 | ) | (14,882 | ) | (14,389 | ) | ||||||||||||||||||||||||
Net transfers |
(27,478 | ) | (117,980 | ) | (633,985 | ) | 600,138 | |||||||||||||||||||||||||||||
Contract maintenance charges |
(27 | ) | (26 | ) | (157 | ) | (275 | ) | (234 | ) | (245 | ) | ||||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
(4,280 | ) | (3,672 | ) | (118,954 | ) | (141,333 | ) | (635,888 | ) | 609,782 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
(4,335 | ) | (2,012 | ) | (126,173 | ) | (98,326 | ) | (747,808 | ) | 749,380 | |||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
12,404 | 14,416 | 139,161 | 237,487 | 1,461,552 | 712,172 | ||||||||||||||||||||||||||||||
|
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|
|
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|
|
|
|
|
| |||||||||||||||||||
End of period |
$ | 8,069 | $ | 12,404 | $ | 12,988 | $ | 139,161 | $ | 713,744 | $ | 1,461,552 | ||||||||||||||||||||||||
|
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|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
1 | 92 | 291 | 947 | 31,044 | |||||||||||||||||||||||||||||||
Units redeemed |
(150 | ) | (141 | ) | (5,293 | ) | (6,867 | ) | (24,670 | ) | (6,897 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
(150 | ) | (140 | ) | (5,201 | ) | (6,576 | ) | (23,723 | ) | 24,147 | |||||||||||||||||||||||||
|
|
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|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||
NEUBERGER BERMAN AMT SUSTAINABLE EQUITY PORTFOLIO |
OPPENHEIMER MAIN STREET SMALL CAP FUND/VA |
PIMCO VIT HIGH YIELD PORTFOLIO | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 406 | $ | 37 | $ | 3,217 | $ | 6,687 | $ | 10,873 | $ | 14,053 | ||||||||||||||||||||||||
Net realized gain (loss) on investments |
4,966 | 961 | 136,495 | 54,113 | (839 | ) | (10,106 | ) | ||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(10,289 | ) | 1,113 | (246,455 | ) | 10,148 | (14,960 | ) | 16,526 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(4,917 | ) | 2,111 | (106,743 | ) | 70,948 | (4,926 | ) | 20,473 | |||||||||||||||||||||||||||
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
240,398 | 245,892 | 35,095 | |||||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(1,055 | ) | (94 | ) | (26,301 | ) | (21,782 | ) | (31,346 | ) | (43,797 | ) | ||||||||||||||||||||||||
Net transfers |
6,517 | 67,452 | 141,886 | 116,586 | (71,786 | ) | (206,065 | ) | ||||||||||||||||||||||||||||
Contract maintenance charges |
(98 | ) | (9 | ) | (495 | ) | (445 | ) | (200 | ) | (288 | ) | ||||||||||||||||||||||||
|
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|
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
5,364 | 67,349 | 355,488 | 340,251 | (68,237 | ) | (250,150 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
447 | 69,460 | 248,745 | 411,199 | (73,163 | ) | (229,677 | ) | ||||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
76,736 | 7,276 | 664,303 | 253,104 | 253,653 | 483,330 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
| |||||||||||||||||||
End of period |
$ | 77,183 | $ | 76,736 | $ | 913,048 | $ | 664,303 | $ | 180,490 | $ | 253,653 | ||||||||||||||||||||||||
|
|
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|
|
|
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
241 | 2,249 | 31,433 | 45,795 | 1,498 | 1,473 | ||||||||||||||||||||||||||||||
Units redeemed |
(87 | ) | (204 | ) | (3,361 | ) | (16,017 | ) | (4,333 | ) | (12,341 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
154 | 2,045 | 28,072 | 29,778 | (2,835 | ) | (10,868 | ) | ||||||||||||||||||||||||||||
|
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|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||
PIMCO VIT LOW DURATION PORTFOLIO |
PIMCO VIT REAL RETURN PORTFOLIO | PIMCO VIT TOTAL RETURN PORTFOLIO | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 115,953 | $ | 73,349 | $ | 13,688 | $ | 17,982 | $ | 92,404 | $ | 71,999 | ||||||||||||||||||||||||
Net realized gain (loss) on investments |
(10,619 | ) | (6,706 | ) | (14,665 | ) | (4,001 | ) | 29,787 | (8,136 | ) | |||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(83,547 | ) | 5,835 | (19,173 | ) | 14,384 | (142,553 | ) | 105,918 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
21,787 | 72,478 | (20,150 | ) | 28,365 | (20,362 | ) | 169,781 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
7,125 | 77,185 | 20,973 | |||||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(125,888 | ) | (98,403 | ) | (9,327 | ) | (11,346 | ) | (78,599 | ) | (63,868 | ) | ||||||||||||||||||||||||
Net transfers |
485,489 | 909,592 | (600,599 | ) | 497,444 | (105,258 | ) | 90,490 | ||||||||||||||||||||||||||||
Contract maintenance charges |
(2,587 | ) | (2,022 | ) | (237 | ) | (287 | ) | (785 | ) | (809 | ) | ||||||||||||||||||||||||
|
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|
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
357,014 | 809,167 | (610,163 | ) | 492,936 | (107,457 | ) | 46,786 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
378,801 | 881,645 | (630,313 | ) | 521,301 | (127,819 | ) | 216,567 | ||||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
5,744,097 | 4,862,452 | 1,140,541 | 619,240 | 3,672,788 | 3,456,221 | ||||||||||||||||||||||||||||||
|
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|
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|
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|
| |||||||||||||||||||
End of period |
$ | 6,122,898 | $ | 5,744,097 | $ | 510,228 | $ | 1,140,541 | $ | 3,544,969 | $ | 3,672,788 | ||||||||||||||||||||||||
|
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|
|
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|
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|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
36,527 | 63,603 | 1,919 | 35,060 | 6,997 | 8,414 | ||||||||||||||||||||||||||||||
Units redeemed |
(12,862 | ) | (9,635 | ) | (36,985 | ) | (6,801 | ) | (12,537 | ) | (6,037 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
23,665 | 53,968 | (35,066 | ) | 28,259 | (5,540 | ) | 2,377 | ||||||||||||||||||||||||||||
|
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|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||
PIONEER REAL ESTATE SHARES VCT PORTFOLIO |
PUTNAM VT EQUITY INCOME FUND | PUTNAM VT HIGH YIELD FUND | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 1,355 | $ | 627 | $ | 4,206 | $ | 7,186 | $ | 49,683 | $ | 44,876 | ||||||||||||||||||||||||
Net realized gain (loss) on investments |
4,451 | 1,581 | 46,666 | 23,953 | (7,716 | ) | 164 | |||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(8,662 | ) | (1,383 | ) | (79,680 | ) | 41,528 | (67,997 | ) | 7,982 | ||||||||||||||||||||||||||
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(2,856 | ) | 825 | (28,808 | ) | 72,667 | (26,030 | ) | 53,022 | |||||||||||||||||||||||||||
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
19,638 | 11,201 | 41,864 | 47,891 | 24,713 | 53,143 | ||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(2,095 | ) | (1,069 | ) | (59,209 | ) | (15,570 | ) | (9,975 | ) | (11,055 | ) | ||||||||||||||||||||||||
Net transfers |
21,163 | (65,972 | ) | 15,569 | (97,536 | ) | 112,966 | |||||||||||||||||||||||||||||
Contract maintenance charges |
(38 | ) | (31 | ) | (293 | ) | (300 | ) | (365 | ) | (407 | ) | ||||||||||||||||||||||||
|
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|
|
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
17,505 | 31,264 | (83,610 | ) | 47,590 | (83,163 | ) | 154,647 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
14,649 | 32,089 | (112,418 | ) | 120,257 | (109,193 | ) | 207,669 | ||||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
34,559 | 2,470 | 453,438 | 333,181 | 830,851 | 623,182 | ||||||||||||||||||||||||||||||
|
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|
|
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|
|
|
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|
|
| |||||||||||||||||||
End of period |
$ | 49,208 | $ | 34,559 | $ | 341,020 | $ | 453,438 | $ | 721,658 | $ | 830,851 | ||||||||||||||||||||||||
|
|
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|
|
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
1,941 | 3,094 | 2,900 | 3,624 | 2,334 | 11,307 | ||||||||||||||||||||||||||||||
Units redeemed |
(218 | ) | (109 | ) | (5,178 | ) | (2,041 | ) | (5,859 | ) | (4,342 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
1,723 | 2,985 | (2,278 | ) | 1,583 | (3,525 | ) | 6,965 | ||||||||||||||||||||||||||||
|
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|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||
PUTNAM VT INCOME FUND | PUTNAM VT INTERNATIONAL GROWTH FUND |
PUTNAM VT SMALL CAP VALUE FUND | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
(1) | (2) | |||||||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 3,371 | $ | $ | 27 | $ | 72 | $ | 586 | $ | 741 | |||||||||||||||||||||||||
Net realized gain (loss) on investments |
(43 | ) | (1 | ) | 1,735 | 1,015 | 25,063 | 3,125 | ||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(2,153 | ) | 238 | (13,064 | ) | 1,388 | (44,547 | ) | 2,208 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
1,175 | 237 | (11,302 | ) | 2,475 | (18,898 | ) | 6,074 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
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|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
58,232 | 22,986 | 3,645 | |||||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(4,927 | ) | (1,429 | ) | (620 | ) | (252 | ) | (1,057 | ) | (1,180 | ) | ||||||||||||||||||||||||
Net transfers |
58,846 | 46,043 | 1,673 | 5,881 | 84,039 | |||||||||||||||||||||||||||||||
Contract maintenance charges |
(22 | ) | (8 | ) | (15 | ) | (10 | ) | (36 | ) | (33 | ) | ||||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
112,129 | 21,549 | 45,408 | 1,411 | 4,788 | 86,471 | ||||||||||||||||||||||||||||||
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
113,304 | 21,786 | 34,106 | 3,886 | (14,110 | ) | 92,545 | |||||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
21,786 | 0 | 10,690 | 6,804 | 92,545 | 0 | ||||||||||||||||||||||||||||||
|
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|
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| |||||||||||||||||||
End of period |
$ | 135,090 | $ | 21,786 | $ | 44,796 | $ | 10,690 | $ | 78,435 | $ | 92,545 | ||||||||||||||||||||||||
|
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|
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|
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|
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|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
11,145 | 2,192 | 1,854 | 391 | 995 | 8,138 | ||||||||||||||||||||||||||||||
Units redeemed |
(495 | ) | (139 | ) | (30 | ) | (330 | ) | (600 | ) | (987 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
10,650 | 2,053 | 1,824 | 61 | 395 | 7,151 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
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|
|
|
|
|
|
| |||||||||||||||||||
(1) For the period July 24, 2017 to December 31, 2017. |
|
|||||||||||||||||||||||||||||||||||
(2) For the period January 30, 2017 to December 31, 2017. |
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||
PUTNAM VT SUSTAINABLE FUTURE FUND | ROYCE CAPITAL FUND - MICRO-CAP
PORTFOLIO |
ROYCE CAPITAL FUND - SMALL-CAP PORTFOLIO | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
(1) | ||||||||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 981 | $ | 776 | $ | $ | 9 | $ | 3,483 | $ | 8,469 | |||||||||||||||||||||||||
Net realized gain (loss) on investments |
8,277 | 3,210 | 150 | 540 | 10,465 | (38,331 | ) | |||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(10,440 | ) | 5,814 | (119 | ) | (1,014 | ) | (109,921 | ) | 81,946 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(1,182 | ) | 9,800 | 31 | (465 | ) | (95,973 | ) | 52,084 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
24,655 | 34,135 | 1 | 28,155 | 27,900 | |||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(2,369 | ) | (2,388 | ) | (21 | ) | (11,466 | ) | (18,733 | ) | (17,162 | ) | ||||||||||||||||||||||||
Net transfers |
(47,616 | ) | (1,777 | ) | (12,010 | ) | (91,835 | ) | ||||||||||||||||||||||||||||
Contract maintenance charges |
(49 | ) | (68 | ) | (6 | ) | (252 | ) | (243 | ) | ||||||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
(25,379 | ) | 31,679 | (1,798 | ) | (23,481 | ) | 9,170 | (81,340 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
(26,561 | ) | 41,479 | (1,767 | ) | (23,946 | ) | (86,803 | ) | (29,256 | ) | |||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
114,508 | 73,029 | 1,767 | 25,713 | 1,094,493 | 1,123,749 | ||||||||||||||||||||||||||||||
|
|
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|
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
End of period |
$ | 87,947 | $ | 114,508 | $ | 0 | $ | 1,767 | $ | 1,007,690 | $ | 1,094,493 | ||||||||||||||||||||||||
|
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|
|
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|
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|
|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
809 | 1,020 | 1 | 1,406 | 2,246 | |||||||||||||||||||||||||||||||
Units redeemed |
(1,435 | ) | (79 | ) | (120 | ) | (1,711 | ) | (1,064 | ) | (6,612 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
(626 | ) | 941 | (120 | ) | (1,710 | ) | 342 | (4,366 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(1) For the period January 1, 2018 to May 23, 2018. |
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||||||||||||||||||||||||||||||
T. ROWE PRICE BLUE CHIP GROWTH PORTFOLIO |
VAN ECK VIP EMERGING MARKETS FUND | VAN ECK VIP GLOBAL HARD ASSETS FUND | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | $ | $ | 153 | $ | 194 | $ | $ | ||||||||||||||||||||||||||||
Net realized gain (loss) on investments |
71,669 | 16,222 | 780 | 63 | (3,821 | ) | (16,788 | ) | ||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments |
(104,966 | ) | 140,416 | (15,003 | ) | 19,367 | (268,190 | ) | 28,786 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from operations |
(33,297 | ) | 156,638 | (14,070 | ) | 19,624 | (272,011 | ) | 11,998 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
CONTRACT TRANSACTIONS: |
||||||||||||||||||||||||||||||||||||
Purchase payments received |
27,462 | 791 | 2,499 | 2,500 | 13,119 | 5,923 | ||||||||||||||||||||||||||||||
Transfers for contract benefits and terminations |
(25,599 | ) | (10,615 | ) | (1,089 | ) | (1,214 | ) | (11,112 | ) | (10,493 | ) | ||||||||||||||||||||||||
Net transfers |
593,526 | 811,943 | 8 | 128,905 | 162,101 | |||||||||||||||||||||||||||||||
Contract maintenance charges |
(536 | ) | (311 | ) | (8 | ) | (8 | ) | (239 | ) | (231 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Increase (decrease) in net assets resulting from contract transactions |
594,853 | 801,808 | 1,410 | 1,278 | 130,673 | 157,300 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total increase (decrease) in net assets |
561,556 | 958,446 | (12,660 | ) | 20,902 | (141,338 | ) | 169,298 | ||||||||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||||||
Beginning of period |
1,025,030 | 66,584 | 58,247 | 37,345 | 920,836 | 751,538 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
End of period |
$ | 1,586,586 | $ | 1,025,030 | $ | 45,587 | $ | 58,247 | $ | 779,498 | $ | 920,836 | ||||||||||||||||||||||||
|
|
|
|
|
|
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|
|
|
|
|
| |||||||||||||||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||||||||||||||||||||||||||||||
Units issued |
41,740 | 68,696 | 100 | 65 | 3,593 | 4,581 | ||||||||||||||||||||||||||||||
Units redeemed |
(4,029 | ) | (2,916 | ) | (75 | ) | (30 | ) | (629 | ) | (1,329 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net increase (decrease) |
37,711 | 65,780 | 25 | 35 | 2,964 | 3,252 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | (Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INVESTMENT DIVISIONS | ||||||||
VICTORY RS SMALL CAP GROWTH EQUITY VIP SERIES | ||||||||
2018 | ||||||||
(1) | ||||||||
INCREASE (DECREASE) IN NET ASSETS: |
||||||||
OPERATIONS: |
||||||||
Net investment income (loss) |
$ | |||||||
Net realized gain (loss) on investments |
||||||||
Change in net unrealized appreciation (depreciation) on investments |
417 | |||||||
|
|
| ||||||
Increase (decrease) in net assets resulting from operations |
417 | |||||||
|
|
| ||||||
CONTRACT TRANSACTIONS: |
||||||||
Purchase payments received |
||||||||
Transfers for contract benefits and terminations |
||||||||
Net transfers |
5,842 | |||||||
Contract maintenance charges |
||||||||
|
|
| ||||||
Increase (decrease) in net assets resulting from contract transactions |
5,842 | |||||||
|
|
| ||||||
Total increase (decrease) in net assets |
6,259 | |||||||
NET ASSETS: |
||||||||
Beginning of period |
0 | |||||||
|
|
| ||||||
End of period |
$ | 6,259 | ||||||
|
|
| ||||||
CHANGES IN UNITS OUTSTANDING: |
||||||||
Units issued |
719 | |||||||
Units redeemed |
||||||||
|
|
| ||||||
Net increase (decrease) |
719 | |||||||
|
|
|
(1) For the period December 24, 2018 to December 31, 2018.
The accompanying notes are an integral part of these financial statements. | (Concluded) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018
1. | ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES |
The COLI VUL-2 Series Account (the Series Account), a variable life separate account of Great-West Life & Annuity Insurance Company (the Company), is registered as a unit investment trust under the Investment Company Act of 1940, as amended, and exists in accordance with regulations of the Colorado Division of Insurance. It is a funding vehicle for variable life insurance policies. The Series Account consists of numerous investment divisions (Investment Divisions), each being treated as an individual accounting entity for financial reporting purposes, and each investing all of its investible assets in the named underlying mutual fund.
Under applicable insurance law, the assets and liabilities of each of the Investment Divisions of the Series Account are clearly identified and distinguished from the Companys other assets and liabilities. The portion of the Series Accounts assets applicable to the reserves and other contract liabilities with respect to the Series Account is not chargeable with liabilities arising out of any other business the Company may conduct.
The preparation of financial statements and financial highlights of each of the Investment Divisions in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and financial highlights and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Series Account is an investment company and, therefore, applies specialized accounting guidance in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services Investment Companies (ASC Topic 946). The following is a summary of the significant accounting policies of the Series Account.
Security Valuation
Mutual fund investments held by the Investment Divisions are valued at the reported net asset values of such underlying mutual funds, which value their investment securities at fair value.
The Series Account classifies its valuations into three levels based upon the observability of inputs to the valuation of the Series Accounts investments. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. Classification is based on the lowest level of input significant to the fair value measurement. The three levels are defined as follows:
Level 1 Unadjusted quoted prices for identical securities in active markets.
Level 2 Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly. These may include quoted prices for similar assets in active markets.
Level 3 Unobservable inputs to the extent observable inputs are not available and may include prices obtained from single broker quotes. Unobservable inputs reflect the reporting entitys own assumptions and would be based on the best information available under the circumstances.
As of December 31, 2018, the only investments of each of the Investment Divisions of the Series Account were in underlying mutual funds that are actively traded, therefore 100% of the investments are valued using Level 1 inputs.
Fund of Funds Structure Risk
Since the Series Account invests directly in underlying funds, all risks associated with the eligible underlying funds apply to the Series Account. To the extent the Series Account invests more of its assets in one underlying fund than another, the Series Account will have greater exposure to the risks of the underlying fund.
Security Transactions and Investment Income
Transactions are recorded on the trade date. Realized gains and losses on sales of investments are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date and the amounts distributed to the Investment Division for its share of dividends are reinvested in additional full and fractional shares of the related mutual funds.
Federal Income Taxes
The operations of each of the Investment Divisions of the Series Account are included in the federal income tax return of the Company, which is taxed as a life insurance company under the provisions of the Internal Revenue Code (IRC). The Company is included in the consolidated federal tax return of Great-West Lifeco U.S. Inc. Under the current provisions of the IRC, the Company does not expect to incur federal income taxes on the earnings of each of the Investment Divisions of the Series Account to the extent the earnings are credited under the contracts. Based on this, no charge is being made currently to the Series Account for federal income taxes. The Company will periodically review the status of the federal income tax policy in the event of changes in the tax law. A charge may be made in future years for any federal income taxes that would be attributable to the contracts.
Purchase Payments Received
Purchase payments received from contract owners by the Company are credited as accumulation units, and are reported as Contract Transactions on the Statement of Changes in Net Assets of the applicable Investment Divisions.
Net Transfers
Net transfers include transfers between Investment Divisions of the Series Account as well as transfers between other investment options of the Company, not included in the Series Account.
Application of Recent Accounting Pronouncements
In August 2018, the Financial Accounting Standards Board issued ASU No. 2018-13, Fair-Value Measurement: Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement (ASU No. 2018-13). ASU No. 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The disclosure changes in ASU 2018-13 are effective for the first interim or annual period beginning after December 15, 2019. Early adoption is permitted for any eliminated or modified disclosures. Eliminated and modified disclosures have been adopted, and there was no impact to the financial statements.
2. | PURCHASES AND SALES OF INVESTMENTS |
The cost of purchases and proceeds from sales of investments for the year ended December 31, 2018 were as follows:
Investment Division |
Purchases | Sales | ||||||
Alger Small Cap Growth Portfolio |
$ | 124,473 | $ | 90,145 | ||||
American Century Investments VP Capital Appreciation Fund |
103,068 | 3,795 | ||||||
American Century Investments VP Income & Growth Fund |
337 | 4,661 | ||||||
American Century Investments VP Inflation Protection Fund |
146,311 | 47,185 | ||||||
American Century Investments VP International Fund |
11,779 | 2,770 | ||||||
American Century Investments VP Value Fund |
306,767 | 139,353 | ||||||
American Funds IS Global Small Capitalization Fund |
161,112 | 13,947 | ||||||
American Funds IS Growth Fund |
687,519 | 281,114 | ||||||
American Funds IS International Fund |
208,882 | 203,342 | ||||||
American Funds IS New World Fund |
285,276 | 220,352 | ||||||
BlackRock Global Allocation Fund |
23,666 | 185 | ||||||
Clearbridge Variable Mid Cap Portfolio |
42,428 | 979 | ||||||
Clearbridge Variable Small Cap Growth Portfolio |
26,528 | 18,494 | ||||||
Columbia Variable Portfolio - Small Cap Value Fund |
18,038 | 7,127 | ||||||
Davis Financial Portfolio |
21,533 | 11,782 | ||||||
Davis Value Portfolio |
21,240 | 2,082 | ||||||
Delaware VIP International Value Equity Series |
94 | 1 | ||||||
Delaware VIP Small Cap Value Series |
11,088 | 17,008 | ||||||
Dreyfus Stock Index Fund |
2,901,007 | 1,566,159 | ||||||
Dreyfus VIF International Equity Portfolio |
49,698 | 1,655 | ||||||
DWS CROCI® U.S. VIP |
81,786 | 50,726 | ||||||
DWS Global Small Cap Growth VIP |
23,573 | 147,038 | ||||||
DWS High Income VIP |
18,108 | 1,050 | ||||||
DWS Small Cap Index VIP |
998,421 | 358,441 | ||||||
DWS Small Mid Cap Value VIP |
641,864 | 175,199 | ||||||
Federated Kaufmann Fund II |
26,247 | 12,370 | ||||||
Fidelity VIP Contrafund Portfolio |
509,403 | 261,328 | ||||||
Fidelity VIP Growth Portfolio |
353,677 | 270,412 | ||||||
Fidelity VIP Investment Grade Bond Portfolio |
70,694 | 265,888 | ||||||
Fidelity VIP Mid Cap Portfolio |
448,736 | 262,292 | ||||||
Goldman Sachs VIT Mid Cap Value Fund |
40,973 | 4,091 | ||||||
Great-West Aggressive Profile Fund |
756,003 | 44,064 | ||||||
Great-West Ariel Mid Cap Value Fund |
66,094 | 199,686 | ||||||
Great-West Bond Index Fund |
133,107 | 190,462 | ||||||
Great-West Conservative Profile Fund |
729,736 | 7,370 | ||||||
Great-West Core Bond Fund |
138,981 | 35,451 | ||||||
Great-West Emerging Markets Equity Fund |
2,053 | - | ||||||
Great-West Global Bond Fund |
651,762 | 751,114 | ||||||
Great-West Government Money Market Fund |
9,351,716 | 11,496,275 | ||||||
Great-West International Index Fund |
16,013 | 2,290 | ||||||
Great-West International Value Fund |
2,982,379 | 168,373 | ||||||
Great-West Large Cap Growth Fund |
113,663 | 85,428 | ||||||
Great-West Lifetime 2015 Fund |
1,318,693 | 215,925 | ||||||
Great-West Lifetime 2025 Fund |
464,206 | 31,804 | ||||||
Great-West Lifetime 2025 Fund |
1,120,828 | 477,243 | ||||||
Great-West Lifetime 2030 Fund |
584,143 | 13,039 | ||||||
Great-West Lifetime 2035 Fund |
1,437,175 | 132,424 | ||||||
Great-West Lifetime 2040 Fund |
325,066 | 99,924 | ||||||
Great-West Lifetime 2045 Fund |
345,999 | 104,373 | ||||||
Great-West Lifetime 2050 Fund |
88,487 | 12,913 | ||||||
Great-West Lifetime 2055 Fund |
67,879 | 3,574 | ||||||
Great-West Loomis Sayles Small Cap Value Fund |
173,568 | 88,553 | ||||||
Great-West Mid Cap Value Fund |
51,565 | 3,779 | ||||||
Great-West Moderate Profile Fund |
306,675 | 44,981 |
Investment Division |
Purchases | Sales | ||||||
Great-West Moderately Aggressive Profile Fund |
$ | 83,341 | $ | 10,733 | ||||
Great-West Moderately Conservative Profile Fund |
50,310 | 5,689 | ||||||
Great-West Multi-Sector Bond Fund |
139,303 | 166,803 | ||||||
Great-West Real Estate Index Fund |
161,025 | 9,848 | ||||||
Great-West S&P Mid Cap 400® Index Fund |
695,678 | 137,081 | ||||||
Great-West S&P Small Cap 600® Index Fund |
53,007 | 144,910 | ||||||
Great-West Short Duration Bond Fund |
919,706 | 2,762,402 | ||||||
Great-West Small Cap Growth Fund |
125,412 | 128,294 | ||||||
Great-West T. Rowe Price Equity Income Fund |
229,205 | 95,773 | ||||||
Great-West T. Rowe Price Mid Cap Growth Fund |
1,807,030 | 899,601 | ||||||
Great-West U. S. Government Securities Fund |
87,137 | 640,786 | ||||||
Invesco V.I. Core Equity Fund |
39,667 | 148,874 | ||||||
Invesco V.I. Global Real Estate Fund |
159,949 | 222,701 | ||||||
Invesco V.I. Health Care Fund |
11,895 | 8,954 | ||||||
Invesco V.I. International Growth Fund |
526,740 | 223,658 | ||||||
Invesco V.I. Mid Cap Core Equity Fund |
97,908 | 22,467 | ||||||
Invesco V.I. Technology Fund |
8,933 | 45,645 | ||||||
Janus Henderson VIT Balanced Portfolio |
1,041,964 | 1,033,328 | ||||||
Janus Henderson VIT Flexible Bond Portfolio |
1,767,760 | 1,494,212 | ||||||
Janus Henderson VIT Forty Portfolio |
2,456,653 | 1,547,338 | ||||||
Janus Henderson VIT Global Research Portfolio |
109,853 | 85,384 | ||||||
Janus Henderson VIT Global Technology Portfolio |
760,804 | 69,111 | ||||||
Janus Henderson VIT Overseas Portfolio |
1,016 | 1,041 | ||||||
Lord Abbett Series Developing Growth Portfolio |
71,053 | 2,403 | ||||||
MFS VIT III Mid Cap Value Portfolio |
2,390 | - | ||||||
MFS VIT Mid Cap Growth Series |
2,213 | - | ||||||
MFS VIT Total Return Bond Series |
90,082 | 9,425 | ||||||
MFS VIT Value Series |
102,239 | 11,683 | ||||||
Neuberger Berman AMT Guardian Portfolio |
13,760 | 113,737 | ||||||
Neuberger Berman AMT Large Cap Value Portfolio |
1,125 | 4,280 | ||||||
Neuberger Berman AMT Mid Cap Growth Portfolio |
10,211 | 120,711 | ||||||
Neuberger Berman AMT Mid Cap Intrinsic Value Portfolio |
66,265 | 657,181 | ||||||
Neuberger Berman AMT Sustainable Equity Portfolio |
13,016 | 2,707 | ||||||
Oppenheimer Main Street Small Cap Fund/VA |
520,189 | 28,987 | ||||||
PIMCO VIT High Yield Portfolio |
43,862 | 101,226 | ||||||
PIMCO VIT Low Duration Portfolio |
643,607 | 170,640 | ||||||
PIMCO VIT Real Return Portfolio |
42,883 | 639,358 | ||||||
PIMCO VIT Total Return Portfolio |
261,957 | 233,088 | ||||||
Pioneer Real Estate Shares VCT Portfolio |
24,413 | 954 | ||||||
Putnam VT Equity Income Fund |
121,928 | 180,683 | ||||||
Putnam VT High Yield Fund |
98,830 | 132,310 | ||||||
Putnam VT Income Fund |
117,654 | 2,154 | ||||||
Putnam VT International Growth Fund |
47,686 | 636 | ||||||
Putnam VT Small Cap Value Fund |
39,237 | 7,030 | ||||||
Putnam VT Sustainable Future Fund |
33,293 | 53,901 | ||||||
Royce Capital Fund - Micro-Cap Portfolio |
- | 1,798 | ||||||
Royce Capital Fund - Small-Cap Portfolio |
44,638 | 17,718 | ||||||
T. Rowe Price Blue Chip Growth Portfolio |
705,363 | 57,204 | ||||||
Van Eck VIP Emerging Markets Fund |
4,786 | 3,223 | ||||||
Van Eck VIP Global Hard Assets Fund |
159,974 | 29,301 | ||||||
Victory RS Small Cap Growth Equity VIP Series |
5,842 | - |
3. | EXPENSES AND RELATED PARTY TRANSACTIONS |
Cost of Insurance
The Company deducts from each participants account an amount to pay for the insurance provided on each life. This charge varies based on individual characteristics of the policy holder and is recorded as Transfers for contract benefits and terminations on the Statement of Changes in Net Assets of the applicable Investment Divisions.
Charges Incurred for Partial Surrenders
The Company deducts from each participants account a maximum administrative fee of $25 for all partial withdrawals after the first made during the same policy year. This charge is recorded as Transfers for contract benefits and terminations on the Statement of Changes in Net Assets of the applicable Investment Divisions.
Charges Incurred for Change of Death Benefit Option Fee
The Company deducts from each participants account a maximum fee of $100 for each change of death benefit option. This charge is recorded as Transfers for contract benefits and terminations on the Statement of Changes in Net Assets of the applicable Investment Divisions.
Transfer Fees
The Company deducts from each participants account a fee of $10 for each transfer between Investment Divisions in excess of 12 transfers in any calendar year. This charge is recorded as Transfers for contract benefits and terminations on the Statement of Changes in Net Assets of the applicable Investment Divisions.
Service Charge
The Company deducts from each participants account an amount equal to a maximum of $10 per month. This charge compensates the Company for certain administrative costs and is recorded as Contract maintenance charges on the Statement of Changes in Net Assets of the applicable Investment Divisions.
Deductions for Assumption of Mortality and Expense Risks
The Company deducts an amount, computed and accrued daily, from each participants account equal to an annual rate that will not exceed 0.90% annually. Currently, the charge is 0.28% for Policy Years 1 through 20 and 0.10% thereafter. These charges compensate the Company for its assumption of certain mortality, death benefit and expense risks. These charges are recorded as Transfers for contract benefits and terminations on the Statement of Changes in Net Assets of the applicable Investment Divisions.
If the above charges prove insufficient to cover actual costs and assumed risks, the loss will be borne by the Company; conversely, if the amounts deducted prove more than sufficient, the excess will be a profit to the Company.
Expense Charges Applied to Premium
The Company deducts a maximum charge of 10% from each premium payment received. A maximum of 6.5% of this charge will be deducted as sales load to compensate the Company in part for sales and promotional expenses in connection with selling the policies. A maximum of 3.5% of this charge will be used to cover premium taxes and certain federal income tax obligations resulting from the receipt of premiums. This charge is netted with Purchase payments received on the Statement of Changes in Net Assets of the applicable Investment Divisions.
Supplemental Benefit Charges
The Company deducts from each participants account an amount to pay for certain riders selected by the policy holder. This charge varies based on individual characteristics of the policy holder when the rider is added to the policy and is recorded as Transfers for contract benefits and terminations on the Statement of Changes in Net Assets of the applicable Investment Divisions.
Related Party Transactions
Great-West Funds, Inc., funds of which are underlying certain Investment Divisions, is a registered investment company affiliated with the Company. Great-West Capital Management, LLC (GWCM), a wholly owned subsidiary of the Company, serves as investment adviser to Great-West Funds, Inc. Fees are assessed against the average daily net assets of the portfolios of Great-West Funds, Inc. to compensate GWCM for investment advisory services.
4. | FINANCIAL HIGHLIGHTS |
For each Investment Division, the accumulation units outstanding, net assets, investment income ratio, the range of lowest to highest expense ratio (excluding expenses of the underlying funds), total return and accumulation unit fair values for each year or period ended December 31 are included on the following pages. The unit values in the Financial Highlights are calculated based on the net assets and accumulation units outstanding as of December 31 of each year presented and may differ from the unit value reflected on the Statement of Assets and Liabilities due to rounding.
The Expense Ratios represent the annualized contract expenses of the respective Investment Divisions of the Series Account, consisting of mortality and expense charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying fund have been excluded.
The Total Return amounts represent the total return for the periods indicated, including changes in the value of the underlying fund, and expenses assessed through the reduction of unit values. These returns do not include any expenses assessed through the redemption of units. Investment Divisions with a date notation indicate the effective date that the investment option was available in the Series Account. The total returns are calculated for each 12-month period indicated or from the effective date through the end of the reporting period and are not annualized for periods less than one year. When a new Investment Division is added to the Series Account, the calculation of the total return begins on the day it is added even though it may not have had operations for all or some of the same period. Unit values and returns for bands or Investment Divisions that had no operations activity during the reporting period are not shown.
The Investment Income Ratio represents the dividends, excluding distributions of capital gains, received by the Investment Division from the underlying mutual fund divided by average net assets during the period. It is not annualized for periods less than one year. The ratio excludes those expenses, such as mortality and expense charges, that result in direct reductions in the unit values. The recognition of investment income by the Investment Division is affected by the timing of the declaration of dividends by the underlying fund in which the Investment Division invests.
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
FINANCIAL HIGHLIGHTS | At December 31 | For the year or period ended December 31 | ||||||||||||||||||||||
INVESTMENT DIVISIONS |
Units (000s) | Unit Fair Value | Net Assets (000s) | Investment Income Ratio |
Expense Ratio | Total Return | ||||||||||||||||||
ALGER SMALL CAP GROWTH PORTFOLIO |
||||||||||||||||||||||||
(Effective date 05/12/2009) |
||||||||||||||||||||||||
2018 |
3 | $ 165.57 | $ 455 | 0.00 % | 0.00 % | 1.44 % | ||||||||||||||||||
2017 |
3 | $ 163.24 | $ 428 | 0.00 % | 0.00 % | 28.73 % | ||||||||||||||||||
2016 |
3 | $ 126.82 | $ 339 | 0.00 % | 0.00 % | 6.24 % | ||||||||||||||||||
2015 |
3 | $ 119.36 | $ 327 | 0.00 % | 0.00 % | (3.32) % | ||||||||||||||||||
2014 |
3 | $ 123.46 | $ 404 | 0.00 % | 0.00 % | 0.43 % | ||||||||||||||||||
AMERICAN CENTURY INVESTMENTS VP CAPITAL APPRECIATION FUND |
||||||||||||||||||||||||
(Effective date 04/24/2014) |
||||||||||||||||||||||||
2018 |
13 | $ 13.24 | $ 174 | 0.00 % | 0.00 % | (5.20) % | ||||||||||||||||||
2017 |
6 | $ 13.97 | $ 89 | 0.00 % | 0.00 % | 21.79 % | ||||||||||||||||||
2016 |
10 | $ 11.47 | $ 119 | 0.00 % | 0.00 % | 3.23 % | ||||||||||||||||||
2015 |
11 | $ 11.11 | $ 120 | 0.00 % | 0.00 % | 1.93 % | ||||||||||||||||||
2014 |
10 | $ 10.90 | $ 114 | 0.00 % | 0.00 % | 9.00 % | ||||||||||||||||||
AMERICAN CENTURY INVESTMENTS VP INCOME & GROWTH FUND |
||||||||||||||||||||||||
2018 |
0 | * | $ 21.00 | $ 0 | * | 1.71 % | 0.00 % | (6.87) % | ||||||||||||||||
2017 |
0 | * | $ 24.35 | $ 5 | 2.26 % | 0.00 % | 20.49 % | |||||||||||||||||
2016 |
0 | * | $ 20.20 | $ 7 | 2.33 % | 0.00 % | 13.49 % | |||||||||||||||||
2015 |
1 | $ 17.77 | $ 13 | 2.01 % | 0.00 % | (5.63) % | ||||||||||||||||||
2014 |
1 | $ 18.84 | $ 22 | 2.01 % | 0.00 % | 12.54 % | ||||||||||||||||||
AMERICAN CENTURY INVESTMENTS VP INFLATION PROTECTION FUND |
||||||||||||||||||||||||
(Effective date 05/01/2015) |
||||||||||||||||||||||||
2018 |
64 | $ 10.13 | $ 644 | 2.92 % | 0.00 % | (2.82) % | ||||||||||||||||||
2017 |
56 | $ 10.42 | $ 582 | 2.73 % | 0.00 % | 3.67 % | ||||||||||||||||||
2016 |
43 | $ 10.05 | $ 433 | 0.72 % | 0.00 % | 4.39 % | ||||||||||||||||||
AMERICAN CENTURY INVESTMENTS VP INTERNATIONAL FUND |
||||||||||||||||||||||||
2018 |
4 | $ 12.25 | $ 52 | 1.24 % | 0.00 % | (15.22) % | ||||||||||||||||||
2017 |
4 | $ 14.45 | $ 55 | 0.94 % | 0.00 % | 31.20 % | ||||||||||||||||||
2016 |
5 | $ 11.01 | $ 50 | 0.98 % | 0.00 % | (5.49) % | ||||||||||||||||||
2015 |
4 | $ 11.65 | $ 48 | 0.77 % | 0.00 % | 0.75 % | ||||||||||||||||||
2014 |
48 | $ 11.57 | $ 555 | 1.63 % | 0.00 % | (5.47) % | ||||||||||||||||||
AMERICAN CENTURY INVESTMENTS VP VALUE FUND |
||||||||||||||||||||||||
2018 |
21 | $ 39.86 | $ 844 | 1.70 % | 0.00 % | (9.15) % | ||||||||||||||||||
2017 |
18 | $ 43.87 | $ 782 | 1.74 % | 0.00 % | 8.75 % | ||||||||||||||||||
2016 |
13 | $ 40.35 | $ 511 | 1.74 % | 0.00 % | 20.48 % | ||||||||||||||||||
2015 |
3 | $ 33.49 | $ 108 | 1.64 % | 0.00 % | (3.88) % | ||||||||||||||||||
2014 |
23 | $ 34.84 | $ 817 | 1.54 % | 0.00 % | 13.08 % | ||||||||||||||||||
AMERICAN FUNDS IS GLOBAL SMALL CAPITALIZATION FUND |
||||||||||||||||||||||||
(Effective date 05/05/2008) |
||||||||||||||||||||||||
2018 |
9 | $ 14.33 | $ 126 | 0.09 % | 0.00 % | (10.55) % | ||||||||||||||||||
2017 |
0 | * | $ 16.03 | $ 4 | 0.15 % | 0.00 % | 25.90 % | |||||||||||||||||
2016 |
3 | $ 12.73 | $ 42 | 0.21 % | 0.00 % | 2.09 % | ||||||||||||||||||
2015 |
6 | $ 12.47 | $ 78 | 0.00 % | 0.00 % | 0.27 % | ||||||||||||||||||
2014 |
12 | $ 12.43 | $ 144 | 0.13 % | 0.00 % | 2.05 % |
(Continued)
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
FINANCIAL HIGHLIGHTS | At December 31 | For the year or period ended December 31 | ||||||||||||||||||||||
INVESTMENT DIVISIONS |
Units (000s) | Unit Fair Value | Net Assets (000s) | Investment Income Ratio |
Expense Ratio | Total Return | ||||||||||||||||||
AMERICAN FUNDS IS GROWTH FUND |
||||||||||||||||||||||||
(Effective date 05/05/2008) |
||||||||||||||||||||||||
2018 |
98 | $ 24.44 | $ 2,394 | 0.44 % | 0.00 % | (0.25) % | ||||||||||||||||||
2017 |
93 | $ 24.50 | $ 2,269 | 0.48 % | 0.00 % | 28.29 % | ||||||||||||||||||
2016 |
106 | $ 19.10 | $ 2,017 | 0.71 % | 0.00 % | 9.49 % | ||||||||||||||||||
2015 |
121 | $ 17.44 | $ 2,105 | 0.62 % | 0.00 % | 6.85 % | ||||||||||||||||||
2014 |
121 | $ 16.32 | $ 1,975 | 0.73 % | 0.00 % | 8.51 % | ||||||||||||||||||
AMERICAN FUNDS IS INTERNATIONAL FUND |
||||||||||||||||||||||||
(Effective date 05/05/2008) |
||||||||||||||||||||||||
2018 |
174 | $ 12.54 | $ 1,469 | 1.68 % | 0.00 % | (13.14) % | ||||||||||||||||||
2017 |
124 | $ 14.44 | $ 1,790 | 1.26 % | 0.00 % | 32.15 % | ||||||||||||||||||
2016 |
135 | $ 10.93 | $ 1,475 | 1.47 % | 0.00 % | 3.53 % | ||||||||||||||||||
2015 |
130 | $ 10.55 | $ 1,370 | 1.48 % | 0.00 % | (4.53) % | ||||||||||||||||||
2014 |
155 | $ 11.05 | $ 1,715 | 1.39 % | 0.00 % | (2.73) % | ||||||||||||||||||
AMERICAN FUNDS IS NEW WORLD FUND |
||||||||||||||||||||||||
(Effective date 04/24/2009) |
||||||||||||||||||||||||
2018 |
80 | $ 19.62 | $ 1,568 | 0.86 % | 0.00 % | (14.04) % | ||||||||||||||||||
2017 |
80 | $ 22.83 | $ 1,823 | 0.95 % | 0.00 % | 29.45 % | ||||||||||||||||||
2016 |
76 | $ 17.64 | $ 1,336 | 0.81 % | 0.00 % | 5.26 % | ||||||||||||||||||
2015 |
72 | $ 16.76 | $ 1,210 | 0.64 % | 0.00 % | (3.14) % | ||||||||||||||||||
2014 |
56 | $ 17.30 | $ 967 | 1.01 % | 0.00 % | (7.88) % | ||||||||||||||||||
BLACKROCK GLOBAL ALLOCATION VI FUND |
||||||||||||||||||||||||
(Effective date 04/29/2016) |
||||||||||||||||||||||||
2018 |
2 | $ 10.91 | $ 21 | 0.99 % | 0.00 % | (7.34) % | ||||||||||||||||||
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO |
||||||||||||||||||||||||
(Effective date 04/29/2016) |
||||||||||||||||||||||||
2018 |
4 | $ 10.96 | $ 48 | 0.65 % | 0.00 % | (12.52) % | ||||||||||||||||||
2017 |
1 | $ 12.54 | $ 14 | 0.43 % | 0.00 % | 12.80 % | ||||||||||||||||||
CLEARBRIDGE VARIABLE SMALL CAP GROWTH PORTFOLIO |
||||||||||||||||||||||||
(Effective date 04/29/2016) |
||||||||||||||||||||||||
2018 |
4 | $ 14.56 | $ 53 | 0.00 % | 0.00 % | 3.44 % | ||||||||||||||||||
2017 |
4 | $ 14.08 | $ 49 | 0.00 % | 0.00 % | 24.27 % | ||||||||||||||||||
COLUMBIA VARIABLE PORTFOLIO - SMALL CAP VALUE FUND |
||||||||||||||||||||||||
(Effective date 05/12/2009) |
||||||||||||||||||||||||
2018 |
2 | $ 27.02 | $ 56 | 0.41 % | 0.00 % | (18.01) % | ||||||||||||||||||
2017 |
2 | $ 32.96 | $ 68 | 0.63 % | 0.00 % | 14.31 % | ||||||||||||||||||
2016 |
4 | $ 28.83 | $ 120 | 0.72 % | 0.00 % | 33.05 % | ||||||||||||||||||
2015 |
10 | $ 21.67 | $ 206 | 0.86 % | 0.00 % | (6.12) % | ||||||||||||||||||
2014 |
11 | $ 23.08 | $ 248 | 0.63 % | 0.00 % | 3.27 % |
(Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
FINANCIAL HIGHLIGHTS | At December 31 | For the year or period ended December 31 | ||||||||||||||||||||||
INVESTMENT DIVISIONS |
Units (000s) | Unit Fair Value | Net Assets (000s) | Investment Income Ratio |
Expense Ratio | Total Return | ||||||||||||||||||
DAVIS FINANCIAL PORTFOLIO |
||||||||||||||||||||||||
(Effective date 05/02/2005) |
||||||||||||||||||||||||
2018 |
2 | $ 21.88 | $ 41 | 1.35 % | 0.00 % | (10.67) % | ||||||||||||||||||
2017 |
2 | $ 24.50 | $ 41 | 1.05 % | 0.00 % | 21.42 % | ||||||||||||||||||
2016 |
0 | * | $ 20.18 | $ 6 | 0.85 % | 0.00 % | 14.25 % | |||||||||||||||||
2015 |
0 | * | $ 17.66 | $ 7 | 0.74 % | 0.00 % | 2.00 % | |||||||||||||||||
2014 |
1 | $ 17.30 | $ 11 | 1.08 % | 0.00 % | 12.78 % | ||||||||||||||||||
DAVIS VALUE PORTFOLIO |
||||||||||||||||||||||||
(Effective date 05/02/2005) |
||||||||||||||||||||||||
2018 |
5 | $ 21.80 | $ 98 | 0.87 % | 0.00 % | (13.60) % | ||||||||||||||||||
2017 |
5 | $ 25.23 | $ 116 | 0.62 % | 0.00 % | 22.63 % | ||||||||||||||||||
2016 |
16 | $ 20.57 | $ 338 | 1.21 % | 0.00 % | 11.88 % | ||||||||||||||||||
2015 |
19 | $ 18.39 | $ 348 | 0.77 % | 0.00 % | 1.60 % | ||||||||||||||||||
2014 |
20 | $ 18.10 | $ 371 | 0.94 % | 0.00 % | 6.03 % | ||||||||||||||||||
DELAWARE VIP INTERNATIONAL VALUE EQUITY SERIES |
||||||||||||||||||||||||
(Effective date 04/29/2016) |
||||||||||||||||||||||||
2018 |
0 | * | $ 11.14 | $ 0 | * | 0.00 % | 0.00 % | (17.64) % | ||||||||||||||||
DELAWARE VIP SMALL CAP VALUE SERIES |
||||||||||||||||||||||||
(Effective date 05/01/2014) |
||||||||||||||||||||||||
2018 |
3 | $ 11.88 | $ 32 | 0.61 % | 0.00 % | (16.95) % | ||||||||||||||||||
2017 |
4 | $ 14.30 | $ 52 | 0.53 % | 0.00 % | 11.76 % | ||||||||||||||||||
2016 |
1 | $ 12.79 | $ 14 | 0.73 % | 0.00 % | 31.07 % | ||||||||||||||||||
2015 |
0 | * | $ 9.77 | $ 5 | 0.00 % | 0.00 % | (6.46) % | |||||||||||||||||
DREYFUS STOCK INDEX FUND |
||||||||||||||||||||||||
2018 |
1,060 | $ 23.57 | $ 24,987 | 1.67 % | 0.00 % | (4.64) % | ||||||||||||||||||
2017 |
1,048 | $ 24.72 | $ 25,895 | 1.72 % | 0.00 % | 21.54 % | ||||||||||||||||||
2016 |
1,044 | $ 20.34 | $ 21,227 | 2.02 % | 0.00 % | 11.71 % | ||||||||||||||||||
2015 |
1,089 | $ 18.20 | $ 19,827 | 1.84 % | 0.00 % | 1.11 % | ||||||||||||||||||
2014 |
1,089 | $ 18.01 | $ 19,606 | 1.76 % | 0.00 % | 13.48 % | ||||||||||||||||||
DREYFUS VIF INTERNATIONAL EQUITY PORTFOLIO |
||||||||||||||||||||||||
2018 |
3 | $ 20.12 | $ 52 | 1.05 % | 0.00 % | (15.72) % | ||||||||||||||||||
2017 |
1 | $ 23.89 | $ 13 | 1.67 % | 0.00 % | 27.33 % | ||||||||||||||||||
2016 |
5 | $ 18.75 | $ 85 | 0.94 % | 0.00 % | (5.54) % | ||||||||||||||||||
2015 |
5 | $ 19.85 | $ 102 | 3.27 % | 0.00 % | 1.37 % | ||||||||||||||||||
2014 |
5 | $ 19.58 | $ 97 | 2.37 % | 0.00 % | (2.64) % |
(Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
FINANCIAL HIGHLIGHTS | At December 31 | For the year or period ended December 31 | ||||||||||||||||||||||
INVESTMENT DIVISIONS |
Units (000s) | Unit Fair Value | Net Assets (000s) | Investment Income Ratio |
Expense Ratio | Total Return | ||||||||||||||||||
DWS CROCI® U.S. VIP |
||||||||||||||||||||||||
(Effective date 05/02/2005) |
||||||||||||||||||||||||
2018 |
19 | $ 14.44 | $ 281 | 2.62 % | 0.00 % | (10.50) % | ||||||||||||||||||
2017 |
19 | $ 16.13 | $ 309 | 1.41 % | 0.00 % | 22.88 % | ||||||||||||||||||
2016 |
24 | $ 13.13 | $ 311 | 1.10 % | 0.00 % | (4.38) % | ||||||||||||||||||
2015 |
15 | $ 13.73 | $ 204 | 1.26 % | 0.00 % | (6.87) % | ||||||||||||||||||
2014 |
6 | $ 14.74 | $ 96 | 0.26 % | 0.00 % | 10.66 % | ||||||||||||||||||
DWS HIGH INCOME VIP |
||||||||||||||||||||||||
(Effective date 04/25/2007) |
||||||||||||||||||||||||
2018 |
4 | $ 17.91 | $ 65 | 8.15 % | 0.00 % | (2.52) % | ||||||||||||||||||
2017 |
3 | $ 18.37 | $ 55 | 6.64 % | 0.00 % | 7.50 % | ||||||||||||||||||
2016 |
3 | $ 17.09 | $ 46 | 5.09 % | 0.00 % | 12.87 % | ||||||||||||||||||
2015 |
1 | $ 15.14 | $ 22 | 4.92 % | 0.00 % | (4.44) % | ||||||||||||||||||
2014 |
6 | $ 15.84 | $ 93 | 6.21 % | 0.00 % | 1.47 % | ||||||||||||||||||
DWS SMALL CAP INDEX VIP |
||||||||||||||||||||||||
(Effective date 04/25/2007) |
||||||||||||||||||||||||
2018 |
272 | $ 21.72 | $ 5,913 | 0.95 % | 0.00 % | (11.23) % | ||||||||||||||||||
2017 |
268 | $ 24.47 | $ 6,559 | 0.72 % | 0.00 % | 14.33 % | ||||||||||||||||||
2016 |
144 | $ 21.40 | $ 3,089 | 1.07 % | 0.00 % | 21.03 % | ||||||||||||||||||
2015 |
151 | $ 17.68 | $ 2,673 | 0.98 % | 0.00 % | (4.60) % | ||||||||||||||||||
2014 |
147 | $ 18.53 | $ 2,730 | 0.89 % | 0.00 % | 4.75 % | ||||||||||||||||||
DWS SMALL MID CAP VALUE VIP |
||||||||||||||||||||||||
(Effective date 05/01/2006) |
||||||||||||||||||||||||
2018 |
70 | $ 22.23 | $ 1,556 | 1.37 % | 0.00 % | (16.01) % | ||||||||||||||||||
2017 |
64 | $ 26.47 | $ 1,695 | 0.73 % | 0.00 % | 10.52 % | ||||||||||||||||||
2016 |
64 | $ 23.95 | $ 1,544 | 0.60 % | 0.00 % | 16.89 % | ||||||||||||||||||
2015 |
81 | $ 20.49 | $ 1,666 | 0.29 % | 0.00 % | (1.91) % | ||||||||||||||||||
2014 |
80 | $ 20.89 | $ 1,678 | 0.78 % | 0.00 % | 5.56 % | ||||||||||||||||||
FEDERATED KAUFMANN FUND II |
||||||||||||||||||||||||
(Effective date 03/08/2010) |
||||||||||||||||||||||||
2018 |
5 | $ 26.65 | $ 144 | 0.00 % | 0.00 % | 3.84 % | ||||||||||||||||||
2017 |
5 | $ 25.66 | $ 136 | 0.00 % | 0.00 % | 28.33 % | ||||||||||||||||||
2016 |
3 | $ 20.00 | $ 65 | 0.00 % | 0.00 % | 3.66 % | ||||||||||||||||||
2015 |
2 | $ 19.29 | $ 38 | 0.00 % | 0.00 % | 6.37 % | ||||||||||||||||||
2014 |
1 | $ 18.14 | $ 22 | 0.00 % | 0.00 % | 9.74 % | ||||||||||||||||||
FIDELITY VIP CONTRAFUND PORTFOLIO |
||||||||||||||||||||||||
2018 |
81 | $ 32.78 | $ 2,660 | 0.44 % | 0.00 % | (6.64) % | ||||||||||||||||||
2017 |
82 | $ 35.11 | $ 2,872 | 0.81 % | 0.00 % | 21.59 % | ||||||||||||||||||
2016 |
81 | $ 28.87 | $ 2,336 | 0.62 % | 0.00 % | 7.73 % | ||||||||||||||||||
2015 |
85 | $ 26.80 | $ 2,268 | 0.73 % | 0.00 % | 0.42 % | ||||||||||||||||||
2014 |
113 | $ 26.69 | $ 3,018 | 0.75 % | 0.00 % | 11.67 % |
(Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
FINANCIAL HIGHLIGHTS | At December 31 | For the year or period ended December 31 | ||||||||||||||||||||||
INVESTMENT DIVISIONS |
Units (000s) | Unit Fair Value | Net Assets (000s) | Investment Income Ratio |
Expense Ratio | Total Return | ||||||||||||||||||
FIDELITY VIP GROWTH PORTFOLIO |
||||||||||||||||||||||||
2018 |
32 | $ 23.19 | $ 739 | 0.03 % | 0.00 % | (0.43) % | ||||||||||||||||||
2017 |
34 | $ 23.29 | $ 791 | 0.10 % | 0.00 % | 34.82 % | ||||||||||||||||||
2016 |
55 | $ 17.27 | $ 952 | 0.00 % | 0.00 % | 0.55 % | ||||||||||||||||||
2015 |
51 | $ 17.18 | $ 883 | 0.03 % | 0.00 % | 6.90 % | ||||||||||||||||||
2014 |
81 | $ 16.07 | $ 1,306 | 0.00 % | 0.00 % | 10.98 % | ||||||||||||||||||
FIDELITY VIP INVESTMENT GRADE BOND PORTFOLIO |
||||||||||||||||||||||||
2018 |
13 | $ 21.54 | $ 280 | 2.33 % | 0.00 % | (0.79) % | ||||||||||||||||||
2017 |
23 | $ 21.71 | $ 496 | 1.93 % | 0.00 % | 3.99 % | ||||||||||||||||||
2016 |
38 | $ 20.88 | $ 793 | 2.27 % | 0.00 % | 4.48 % | ||||||||||||||||||
2015 |
32 | $ 19.99 | $ 644 | 2.05 % | 0.00 % | (0.85) % | ||||||||||||||||||
2014 |
40 | $ 20.16 | $ 810 | 2.04 % | 0.00 % | 5.66 % | ||||||||||||||||||
FIDELITY VIP MID CAP PORTFOLIO |
||||||||||||||||||||||||
2018 |
19 | $ 46.96 | $ 885 | 0.42 % | 0.00 % | (14.77) % | ||||||||||||||||||
2017 |
17 | $ 55.10 | $ 952 | 0.50 % | 0.00 % | 20.54 % | ||||||||||||||||||
2016 |
21 | $ 45.71 | $ 965 | 0.33 % | 0.00 % | 11.92 % | ||||||||||||||||||
2015 |
22 | $ 40.85 | $ 903 | 0.25 % | 0.00 % | (1.63) % | ||||||||||||||||||
2014 |
20 | $ 41.52 | $ 851 | 0.02 % | 0.00 % | 6.03 % | ||||||||||||||||||
GOLDMAN SACHS VIT MID CAP VALUE FUND |
||||||||||||||||||||||||
(Effective date 05/01/2013) |
||||||||||||||||||||||||
2018 |
3 | $ 13.71 | $ 45 | 1.57 % | 0.00 % | (10.46) % | ||||||||||||||||||
2017 |
1 | $ 15.32 | $ 21 | 0.97 % | 0.00 % | 11.07 % | ||||||||||||||||||
2016 |
1 | $ 13.79 | $ 10 | 1.28 % | 0.00 % | 13.53 % | ||||||||||||||||||
GREAT-WEST AGGRESSIVE PROFILE FUND |
||||||||||||||||||||||||
(Effective date 04/28/2017) |
||||||||||||||||||||||||
2018 |
107 | $ 10.11 | $ 1,084 | 2.98 % | 0.00 % | (10.41) % | ||||||||||||||||||
2017 |
59 | $ 11.28 | $ 666 | 2.00 % | 0.00 % | 12.80 % | ||||||||||||||||||
GREAT-WEST ARIEL MID CAP VALUE FUND |
||||||||||||||||||||||||
2018 |
4 | $ 44.76 | $ 197 | 0.69 % | 0.00 % | (14.40) % | ||||||||||||||||||
2017 |
8 | $ 52.29 | $ 398 | 2.07 % | 0.00 % | 15.01 % | ||||||||||||||||||
2016 |
13 | $ 45.47 | $ 596 | 1.42 % | 0.00 % | 13.05 % | ||||||||||||||||||
2015 |
16 | $ 40.22 | $ 643 | 1.06 % | 0.00 % | (6.10) % | ||||||||||||||||||
2014 |
25 | $ 42.83 | $ 1,067 | 1.67 % | 0.00 % | 7.80 % | ||||||||||||||||||
GREAT-WEST BOND INDEX FUND |
||||||||||||||||||||||||
(Effective date 04/24/2009) |
||||||||||||||||||||||||
2018 |
139 | $ 14.22 | $ 1,976 | 1.33 % | 0.00 % | (0.41) % | ||||||||||||||||||
2017 |
145 | $ 14.28 | $ 2,070 | 1.04 % | 0.00 % | 3.05 % | ||||||||||||||||||
2016 |
142 | $ 13.86 | $ 1,963 | 0.96 % | 0.00 % | 1.94 % | ||||||||||||||||||
2015 |
133 | $ 13.59 | $ 1,814 | 1.61 % | 0.00 % | 0.24 % | ||||||||||||||||||
2014 |
140 | $ 13.56 | $ 1,892 | 2.13 % | 0.00 % | 5.77 % |
(Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
FINANCIAL HIGHLIGHTS | At December 31 | For the year or period ended December 31 | ||||||||||||||||||||||
INVESTMENT DIVISIONS |
Units (000s) | Unit Fair Value | Net Assets (000s) | Investment Income Ratio |
Expense Ratio | Total Return | ||||||||||||||||||
GREAT-WEST CONSERVATIVE PROFILE FUND |
||||||||||||||||||||||||
(Effective date 04/28/2017) |
||||||||||||||||||||||||
2018 |
78 | $ 10.10 | $ 792 | 8.65 % | 0.00 % | (3.15) % | ||||||||||||||||||
2017 |
9 | $ 10.42 | $ 96 | 1.81 % | 0.00 % | 4.24 % | ||||||||||||||||||
GREAT-WEST CORE BOND FUND |
||||||||||||||||||||||||
(Effective date 04/24/2009) |
||||||||||||||||||||||||
2018 |
166 | $ 14.39 | $ 2,394 | 2.39 % | 0.00 % | (1.21) % | ||||||||||||||||||
2017 |
163 | $ 14.57 | $ 2,376 | 1.95 % | 0.00 % | 3.89 % | ||||||||||||||||||
2016 |
168 | $ 14.02 | $ 2,349 | 3.06 % | 0.00 % | 4.70 % | ||||||||||||||||||
2015 |
0 | * | $ 13.40 | $ 6 | 3.65 % | 0.00 % | (1.17) % | |||||||||||||||||
GREAT-WEST EMERGING MARKETS EQUITY FUND |
||||||||||||||||||||||||
(Effective date 04/30/2018) |
||||||||||||||||||||||||
2018 |
0 | * | $ 8.24 | $ 2 | 0.82 % | 0.00 % | (17.55) % | |||||||||||||||||
GREAT-WEST GLOBAL BOND FUND |
||||||||||||||||||||||||
(Effective date 05/05/2008) |
||||||||||||||||||||||||
2018 |
336 | $ 14.20 | $ 4,773 | 2.55 % | 0.00 % | (0.27) % | ||||||||||||||||||
2017 |
352 | $ 14.24 | $ 5,014 | 1.77 % | 0.00 % | 1.95 % | ||||||||||||||||||
2016 |
304 | $ 13.97 | $ 4,248 | 1.33 % | 0.00 % | 2.98 % | ||||||||||||||||||
2015 |
307 | $ 13.57 | $ 4,170 | 4.13 % | 0.00 % | (4.19) % | ||||||||||||||||||
2014 |
256 | $ 14.16 | $ 3,628 | 4.86 % | 0.00 % | 0.14 % | ||||||||||||||||||
GREAT-WEST GOVERNMENT MONEY MARKET FUND |
||||||||||||||||||||||||
2018 |
656 | $ 13.25 | $ 8,692 | 1.37 % | 0.00 % | 1.39 % | ||||||||||||||||||
2017 |
829 | $ 13.07 | $ 10,837 | 0.38 % | 0.00 % | 0.41 % | ||||||||||||||||||
2016 |
1,015 | $ 13.01 | $ 13,203 | 0.00 % | 0.00 % | 0.00 % | ||||||||||||||||||
2015 |
830 | $ 13.01 | $ 10,807 | 0.00 % | 0.00 % | 0.00 % | ||||||||||||||||||
2014 |
749 | $ 13.01 | $ 9,740 | 0.00 % | 0.00 % | 0.00 % | ||||||||||||||||||
GREAT-WEST INTERNATIONAL INDEX FUND |
||||||||||||||||||||||||
(Effective date 05/01/2013) |
||||||||||||||||||||||||
2018 |
5 | $ 11.15 | $ 54 | 2.16 % | 0.00 % | (13.84) % | ||||||||||||||||||
2017 |
4 | $ 12.94 | $ 49 | 2.03 % | 0.00 % | 24.62 % | ||||||||||||||||||
2016 |
0 | * | $ 10.39 | $ 4 | 0.34 % | 0.00 % | 0.66 % | |||||||||||||||||
2015 |
1 | $ 10.32 | $ 15 | 1.22 % | 0.00 % | (1.08) % | ||||||||||||||||||
2014 |
1 | $ 10.43 | $ 8 | 1.59 % | 0.00 % | (6.21) % | ||||||||||||||||||
GREAT-WEST INTERNATIONAL VALUE FUND |
||||||||||||||||||||||||
(Effective date 04/25/2007) 2018 |
436 | $ 11.62 | $ 5,064 | 1.55 % | 0.00 % | (15.58) % | ||||||||||||||||||
2017 |
308 | $ 13.76 | $ 4,235 | 1.03 % | 0.00 % | 26.46 % | ||||||||||||||||||
2016 |
328 | $ 10.88 | $ 3,567 | 0.57 % | 0.00 % | 3.88 % | ||||||||||||||||||
2015 |
480 | $ 10.48 | $ 5,028 | 0.87 % | 0.00 % | 6.45 % | ||||||||||||||||||
2014 |
379 | $ 9.84 | $ 3,727 | 0.93 % | 0.00 % | 0.92 % |
(Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
FINANCIAL HIGHLIGHTS | At December 31 | For the year or period ended December 31 | ||||||||||||||||||||||
INVESTMENT DIVISIONS |
Units (000s) | Unit Fair Value | Net Assets (000s) | Investment Income Ratio |
Expense Ratio | Total Return | ||||||||||||||||||
GREAT-WEST LARGE CAP GROWTH FUND |
||||||||||||||||||||||||
(Effective date 04/24/2009) |
||||||||||||||||||||||||
2018 |
7 | $ 31.53 | $ 207 | 0.25 % | 0.00 % | 0.05 % | ||||||||||||||||||
2017 |
7 | $ 31.51 | $ 224 | 0.78 % | 0.00 % | 30.05 % | ||||||||||||||||||
2016 |
7 | $ 24.23 | $ 158 | 0.17 % | 0.00 % | 1.01 % | ||||||||||||||||||
2015 |
6 | $ 23.99 | $ 136 | 0.21 % | 0.00 % | 6.41 % | ||||||||||||||||||
2014 |
4 | $ 22.55 | $ 90 | 0.66 % | 0.00 % | 12.30 % | ||||||||||||||||||
GREAT-WEST LIFETIME 2015 FUND |
||||||||||||||||||||||||
(Effective date 04/21/2016) |
||||||||||||||||||||||||
2018 |
149 | $ 11.08 | $ 1,647 | 2.48 % | 0.00 % | (4.41) % | ||||||||||||||||||
2017 |
62 | $ 11.59 | $ 724 | 1.90 % | 0.00 % | 11.12 % | ||||||||||||||||||
2016 |
22 | $ 10.43 | $ 227 | 2.01 % | 0.00 % | 4.29 % | ||||||||||||||||||
GREAT-WEST LIFETIME 2020 FUND |
||||||||||||||||||||||||
(Effective date 04/29/2016) |
||||||||||||||||||||||||
2018 |
40 | $ 11.20 | $ 444 | 2.91 % | 0.00 % | (4.95) % | ||||||||||||||||||
2017 |
6 | $ 11.79 | $ 69 | 4.04 % | 0.00 % | 12.44 % | ||||||||||||||||||
GREAT-WEST LIFETIME 2025 FUND |
||||||||||||||||||||||||
(Effective date 04/21/2016) |
||||||||||||||||||||||||
2018 |
191 | $ 11.30 | $ 2,159 | 2.12 % | 0.00 % | (5.74) % | ||||||||||||||||||
2017 |
151 | $ 11.99 | $ 1,806 | 2.00 % | 0.00 % | 14.14 % | ||||||||||||||||||
2016 |
86 | $ 10.51 | $ 901 | 2.20 % | 0.00 % | 5.06 % | ||||||||||||||||||
GREAT-WEST LIFETIME 2030 FUND |
||||||||||||||||||||||||
(Effective date 04/29/2016) |
||||||||||||||||||||||||
2018 |
105 | $ 11.50 | $ 1,211 | 2.91 % | 0.00 % | (6.73) % | ||||||||||||||||||
2017 |
66 | $ 12.33 | $ 820 | 4.73 % | 0.00 % | 16.17 % | ||||||||||||||||||
2016 |
9 | $ 10.61 | $ 93 | 1.18 % | 0.00 % | 6.11 % | ||||||||||||||||||
GREAT-WEST LIFETIME 2035 FUND |
||||||||||||||||||||||||
(Effective date 04/21/2016) |
||||||||||||||||||||||||
2018 |
134 | $ 11.55 | $ 1,549 | 2.30 % | 0.00 % | (7.86) % | ||||||||||||||||||
2017 |
44 | $ 12.54 | $ 552 | 2.16 % | 0.00 % | 18.36 % | ||||||||||||||||||
2016 |
23 | $ 10.60 | $ 249 | 2.11 % | 0.00 % | 5.96 % | ||||||||||||||||||
GREAT-WEST LIFETIME 2040 FUND |
||||||||||||||||||||||||
(Effective date 04/29/2016) |
||||||||||||||||||||||||
2018 |
50 | $ 11.68 | $ 580 | 2.75 % | 0.00 % | (8.75) % | ||||||||||||||||||
2017 |
37 | $ 12.80 | $ 477 | 5.96 % | 0.00 % | 19.53 % | ||||||||||||||||||
2016 |
8 | $ 10.71 | $ 88 | 2.39 % | 0.00 % | 7.09 % | ||||||||||||||||||
GREAT-WEST LIFETIME 2045 FUND |
||||||||||||||||||||||||
(Effective date 04/21/2016) |
||||||||||||||||||||||||
2018 |
42 | $ 11.60 | $ 486 | 1.88 % | 0.00 % | (9.36) % | ||||||||||||||||||
2017 |
26 | $ 12.80 | $ 337 | 2.03 % | 0.00 % | 20.43 % | ||||||||||||||||||
2016 |
13 | $ 10.63 | $ 138 | 1.82 % | 0.00 % | 6.29 % |
(Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
FINANCIAL HIGHLIGHTS | At December 31 | For the year or period ended December 31 | ||||||||||||||||||||||
INVESTMENT DIVISIONS |
Units (000s) | Unit Fair Value | Net Assets (000s) | Investment Income Ratio |
Expense Ratio | Total Return | ||||||||||||||||||
GREAT-WEST LIFETIME 2050 FUND |
||||||||||||||||||||||||
(Effective date 04/29/2016) |
||||||||||||||||||||||||
2018 |
20 | $ 11.69 | $ 228 | 2.77 % | 0.00 % | (9.53) % | ||||||||||||||||||
2017 |
15 | $ 12.92 | $ 196 | 3.54 % | 0.00 % | 20.59 % | ||||||||||||||||||
GREAT-WEST LIFETIME 2055 FUND |
||||||||||||||||||||||||
(Effective date 04/21/2016) |
||||||||||||||||||||||||
2018 |
15 | $ 11.58 | $ 173 | 1.61 % | 0.00 % | (9.74) % | ||||||||||||||||||
2017 |
11 | $ 12.83 | $ 143 | 1.82 % | 0.00 % | 20.80 % | ||||||||||||||||||
2016 |
5 | $ 10.62 | $ 56 | 1.71 % | 0.00 % | 6.21 % | ||||||||||||||||||
GREAT-WEST LOOMIS SAYLES SMALL CAP VALUE FUND |
||||||||||||||||||||||||
2018 |
22 | $ 35.10 | $ 756 | 0.00 % | 0.00 % | (16.20) % | ||||||||||||||||||
2017 |
20 | $ 41.89 | $ 831 | 0.08 % | 0.00 % | 9.74 % | ||||||||||||||||||
2016 |
19 | $ 38.17 | $ 735 | 0.08 % | 0.00 % | 25.83 % | ||||||||||||||||||
2015 |
17 | $ 30.34 | $ 525 | 0.23 % | 0.00 % | (3.47) % | ||||||||||||||||||
2014 |
20 | $ 31.42 | $ 629 | 0.94 % | 0.00 % | 4.84 % | ||||||||||||||||||
GREAT-WEST MID CAP VALUE FUND |
||||||||||||||||||||||||
(Effective date 05/01/2015) |
||||||||||||||||||||||||
2018 |
7 | $ 11.58 | $ 81 | 4.81 % | 0.00 % | (12.31) % | ||||||||||||||||||
2017 |
4 | $ 13.21 | $ 50 | 13.64 % | 0.00 % | 16.99 % | ||||||||||||||||||
2016 |
0 | * | $ 11.24 | $ 1 | 1.56 % | 0.00 % | 20.29 % | |||||||||||||||||
GREAT-WEST MODERATE PROFILE FUND |
||||||||||||||||||||||||
(Effective date 04/28/2017) |
||||||||||||||||||||||||
2018 |
28 | $ 10.12 | $ 283 | 3.33 % | 0.00 % | (6.29) % | ||||||||||||||||||
2017 |
6 | $ 10.80 | $ 67 | 1.51 % | 0.00 % | 7.96 % | ||||||||||||||||||
GREAT-WEST MODERATELY AGGRESSIVE PROFILE FUND |
||||||||||||||||||||||||
(Effective date 04/28/2017) |
||||||||||||||||||||||||
2018 |
8 | $ 10.11 | $ 77 | 3.06 % | 0.00 % | (7.63) % | ||||||||||||||||||
2017 |
2 | $ 10.95 | $ 20 | 1.15 % | 0.00 % | 9.49 % | ||||||||||||||||||
GREAT-WEST MODERATELY CONSERVATIVE PROFILE FUND |
||||||||||||||||||||||||
(Effective date 04/28/2017) |
||||||||||||||||||||||||
2018 |
9 | $ 10.10 | $ 87 | 2.97 % | 0.00 % | (4.72) % | ||||||||||||||||||
2017 |
5 | $ 10.61 | $ 54 | 1.43 % | 0.00 % | 6.06 % | ||||||||||||||||||
GREAT-WEST MULTI-SECTOR BOND FUND |
||||||||||||||||||||||||
2018 |
13 | $ 38.01 | $ 507 | 2.44 % | 0.00 % | (3.11) % | ||||||||||||||||||
2017 |
15 | $ 39.23 | $ 573 | 1.66 % | 0.00 % | 6.27 % | ||||||||||||||||||
2016 |
21 | $ 36.91 | $ 790 | 2.33 % | 0.00 % | 11.38 % | ||||||||||||||||||
2015 |
19 | $ 33.14 | $ 639 | 1.34 % | 0.00 % | (6.55) % | ||||||||||||||||||
2014 |
69 | $ 35.46 | $ 2,444 | 3.89 % | 0.00 % | 3.44 % |
(Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
FINANCIAL HIGHLIGHTS | At December 31 | For the year or period ended December 31 | ||||||||||||||||||||||
INVESTMENT DIVISIONS |
Units (000s) | Unit Fair Value | Net Assets (000s) | Investment Income Ratio |
Expense Ratio | Total Return | ||||||||||||||||||
GREAT-WEST REAL ESTATE INDEX FUND |
||||||||||||||||||||||||
(Effective date 05/01/2013) |
||||||||||||||||||||||||
2018 |
16 | $ | 12.50 | $ | 195 | 2.17 % | 0.00 % | (4.85) | % | |||||||||||||||
2017 |
5 | $ | 13.14 | $ | 63 | 0.84 % | 0.00 % | 3.10 | % | |||||||||||||||
GREAT-WEST S&P MID CAP 400® INDEX FUND |
||||||||||||||||||||||||
(Effective date 05/01/2013) |
||||||||||||||||||||||||
2018 |
90 | $ | 15.44 | $ | 1,388 | 0.69 % | 0.00 % | (11.57) | % | |||||||||||||||
2017 |
65 | $ | 17.46 | $ | 1,141 | 0.66 % | 0.00 % | 15.65 | % | |||||||||||||||
2016 |
28 | $ | 15.10 | $ | 420 | 0.61 % | 0.00 % | 19.96 | % | |||||||||||||||
2015 |
24 | $ | 12.59 | $ | 300 | 1.65 % | 0.00 % | (2.77) | % | |||||||||||||||
2014 |
0 | * | $ | 12.92 | $ | 2 | 1.39 % | 0.00 % | 9.19 | % | ||||||||||||||
GREAT-WEST S&P SMALL CAP 600® INDEX FUND |
||||||||||||||||||||||||
(Effective date 02/29/2016) |
||||||||||||||||||||||||
2018 |
1 | $ | 12.92 | $ | 14 | 1.20 % | 0.00 % | (8.99) | % | |||||||||||||||
2017 |
9 | $ | 14.97 | $ | 142 | 1.51 % | 0.00 % | 12.75 | % | |||||||||||||||
2016 |
10 | $ | 13.28 | $ | 129 | 1.00 % | 0.00 % | 32.77 | % | |||||||||||||||
GREAT-WEST SHORT DURATION BOND FUND |
||||||||||||||||||||||||
(Effective date 04/25/2007) |
||||||||||||||||||||||||
2018 |
542 | $ | 14.10 | $ | 7,645 | 1.83 % | 0.00 % | 0.63 | % | |||||||||||||||
2017 |
684 | $ | 14.01 | $ | 9,588 | 1.15 % | 0.00 % | 1.96 | % | |||||||||||||||
2016 |
527 | $ | 13.74 | $ | 7,238 | 1.52 % | 0.00 % | 1.70 | % | |||||||||||||||
2015 |
452 | $ | 13.51 | $ | 6,105 | 1.19 % | 0.00 % | 0.54 | % | |||||||||||||||
2014 |
428 | $ | 13.44 | $ | 5,752 | 1.52 % | 0.00 % | 0.98 | % | |||||||||||||||
GREAT-WEST T. ROWE PRICE EQUITY INCOME FUND |
||||||||||||||||||||||||
2018 |
61 | $ | 26.74 | $ | 1,625 | 0.29 % | 0.00 % | (9.52) | % | |||||||||||||||
2017 |
59 | $ | 29.56 | $ | 1,755 | 0.88 % | 0.00 % | 16.22 | % | |||||||||||||||
2016 |
60 | $ | 25.43 | $ | 1,533 | 0.66 % | 0.00 % | 18.75 | % | |||||||||||||||
2015 |
90 | $ | 21.42 | $ | 1,931 | 1.21 % | 0.00 % | (6.89) | % | |||||||||||||||
2014 |
106 | $ | 23.00 | $ | 2,448 | 1.91 % | 0.00 % | 7.38 | % | |||||||||||||||
GREAT-WEST T. ROWE PRICE MID CAP GROWTH FUND |
||||||||||||||||||||||||
2018 |
89 | $ | 42.43 | $ | 3,763 | 0.09 % | 0.00 % | (2.33) | % | |||||||||||||||
2017 |
72 | $ | 43.44 | $ | 3,121 | 0.34 % | 0.00 % | 24.43 | % | |||||||||||||||
2016 |
86 | $ | 34.91 | $ | 3,009 | 0.06 % | 0.00 % | 6.18 | % | |||||||||||||||
2015 |
81 | $ | 32.88 | $ | 2,670 | 0.02 % | 0.00 % | 6.52 | % | |||||||||||||||
2014 |
94 | $ | 30.87 | $ | 2,906 | 0.73 % | 0.00 % | 12.79 | % | |||||||||||||||
GREAT-WEST U.S. GOVERNMENT SECURITIES FUND |
||||||||||||||||||||||||
2018 |
134 | $ | 22.14 | $ | 2,964 | 1.90 % | 0.00 % | 0.46 | % | |||||||||||||||
2017 |
162 | $ | 22.04 | $ | 3,567 | 1.35 % | 0.00 % | 2.22 | % | |||||||||||||||
2016 |
178 | $ | 21.56 | $ | 3,841 | 1.71 % | 0.00 % | 1.22 | % | |||||||||||||||
2015 |
190 | $ | 21.30 | $ | 4,057 | 2.04 % | 0.00 % | 0.79 | % | |||||||||||||||
2014 |
192 | $ | 21.13 | $ | 4,062 | 2.47 % | 0.00 % | 5.44 | % |
(Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
FINANCIAL HIGHLIGHTS | At December 31 | For the year or period ended December 31 | ||||||||||||||||||||||
INVESTMENT DIVISIONS |
Units (000s) | Unit Fair Value | Net Assets (000s) | Investment Income Ratio |
Expense Ratio | Total Return | ||||||||||||||||||
INVESCO V.I. CORE EQUITY FUND |
||||||||||||||||||||||||
2018 |
1 | $ | 21.35 | $ | 19 | 0.91 % | 0.00 % | (9.40) | % | |||||||||||||||
2017 |
7 | $ | 23.57 | $ | 160 | 0.95 % | 0.00 % | 13.17 | % | |||||||||||||||
2016 |
7 | $ | 20.82 | $ | 147 | 0.76 % | 0.00 % | 10.26 | % | |||||||||||||||
2015 |
7 | $ | 18.88 | $ | 128 | 0.33 % | 0.00 % | (5.77) | % | |||||||||||||||
2014 |
44 | $ | 20.04 | $ | 883 | 0.85 % | 0.00 % | 8.15 | % | |||||||||||||||
INVESCO V.I. GLOBAL REAL ESTATE FUND |
||||||||||||||||||||||||
(Effective date 04/25/2007) |
||||||||||||||||||||||||
2018 |
40 | $ | 36.93 | $ | 1,471 | 3.70 % | 0.00 % | (6.15) | % | |||||||||||||||
2017 |
44 | $ | 39.36 | $ | 1,713 | 3.23 % | 0.00 % | 13.05 | % | |||||||||||||||
2016 |
43 | $ | 34.81 | $ | 1,494 | 1.60 % | 0.00 % | 2.04 | % | |||||||||||||||
2015 |
41 | $ | 34.12 | $ | 1,402 | 3.73 % | 0.00 % | (1.48) | % | |||||||||||||||
2014 |
36 | $ | 34.63 | $ | 1,242 | 1.61 % | 0.00 % | 14.63 | % | |||||||||||||||
INVESCO V.I. HEALTH CARE FUND |
||||||||||||||||||||||||
2018 |
3 | $ | 30.73 | $ | 81 | 0.00 % | 0.00 % | 0.91 | % | |||||||||||||||
2017 |
3 | $ | 30.46 | $ | 88 | 0.37 % | 0.00 % | 15.83 | % | |||||||||||||||
2016 |
4 | $ | 26.30 | $ | 112 | 0.00 % | 0.00 % | (11.46) | % | |||||||||||||||
2015 |
4 | $ | 29.70 | $ | 115 | 0.00 % | 0.00 % | 3.16 | % | |||||||||||||||
2014 |
13 | $ | 28.79 | $ | 361 | 0.00 % | 0.00 % | 19.66 | % | |||||||||||||||
INVESCO V.I. INTERNATIONAL GROWTH FUND |
||||||||||||||||||||||||
(Effective date 05/01/2006) |
||||||||||||||||||||||||
2018 |
203 | $ | 15.24 | $ | 3,100 | 2.18 % | 0.00 % | (14.97) | % | |||||||||||||||
2017 |
191 | $ | 17.93 | $ | 3,432 | 1.46 % | 0.00 % | 23.00 | % | |||||||||||||||
2016 |
191 | $ | 14.57 | $ | 2,779 | 1.43 % | 0.00 % | (0.45) | % | |||||||||||||||
2015 |
196 | $ | 14.64 | $ | 2,873 | 1.61 % | 0.00 % | (2.34) | % | |||||||||||||||
2014 |
164 | $ | 14.99 | $ | 2,456 | 1.50 % | 0.00 % | 0.33 | % | |||||||||||||||
INVESCO V.I. MID CAP CORE EQUITY FUND |
||||||||||||||||||||||||
(Effective date 04/24/2009) |
||||||||||||||||||||||||
2018 |
9 | $ | 22.53 | $ | 196 | 0.57 % | 0.00 % | (11.35) | % | |||||||||||||||
2017 |
7 | $ | 25.41 | $ | 180 | 0.36 % | 0.00 % | 14.92 | % | |||||||||||||||
2016 |
19 | $ | 22.12 | $ | 412 | 0.07 % | 0.00 % | 13.43 | % | |||||||||||||||
2015 |
17 | $ | 19.50 | $ | 323 | 0.36 % | 0.00 % | (4.03) | % | |||||||||||||||
2014 |
17 | $ | 20.32 | $ | 346 | 0.04 % | 0.00 % | 4.47 | % | |||||||||||||||
INVESCO V.I. TECHNOLOGY FUND |
||||||||||||||||||||||||
2018 |
5 | $ | 24.62 | $ | 129 | 0.00 % | 0.00 % | (0.45) | % | |||||||||||||||
2017 |
7 | $ | 24.73 | $ | 169 | 0.00 % | 0.00 % | 35.13 | % | |||||||||||||||
2016 |
9 | $ | 18.30 | $ | 171 | 0.00 % | 0.00 % | (0.75) | % | |||||||||||||||
2015 |
9 | $ | 18.44 | $ | 171 | 0.00 % | 0.00 % | 6.81 | % | |||||||||||||||
2014 |
28 | $ | 17.26 | $ | 485 | 0.00 % | 0.00 % | 11.07 | % |
(Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
FINANCIAL HIGHLIGHTS | At December 31 | For the year or period ended December 31 | ||||||||||||||||||||||
INVESTMENT DIVISIONS |
Units (000s) | Unit Fair Value | Net Assets (000s) | Investment Income Ratio |
Expense Ratio | Total Return | ||||||||||||||||||
JANUS HENDERSON VIT BALANCED PORTFOLIO |
||||||||||||||||||||||||
2018 |
71 | $ | 30.93 | $ | 2,200 | 2.09 % | 0.00 % | 0.68 | % | |||||||||||||||
2017 |
75 | $ | 30.72 | $ | 2,294 | 1.69 % | 0.00 % | 18.43 | % | |||||||||||||||
2016 |
46 | $ | 25.94 | $ | 1,183 | 2.26 % | 0.00 % | 4.61 | % | |||||||||||||||
2015 |
37 | $ | 24.80 | $ | 910 | 1.67 % | 0.00 % | 0.62 | % | |||||||||||||||
2014 |
48 | $ | 24.64 | $ | 1,177 | 1.69 % | 0.00 % | 8.50 | % | |||||||||||||||
JANUS HENDERSON VIT FLEXIBLE BOND PORTFOLIO |
||||||||||||||||||||||||
2018 |
69 | $ | 26.34 | $ | 1,805 | 3.63 % | 0.00 % | (1.00) | % | |||||||||||||||
2017 |
60 | $ | 26.60 | $ | 1,597 | 3.13 % | 0.00 % | 3.62 | % | |||||||||||||||
2016 |
77 | $ | 25.68 | $ | 1,989 | 2.55 % | 0.00 % | 2.47 | % | |||||||||||||||
2015 |
189 | $ | 25.06 | $ | 4,725 | 2.16 % | 0.00 % | 0.22 | % | |||||||||||||||
2014 |
233 | $ | 25.00 | $ | 5,830 | 3.61 % | 0.00 % | 4.91 | % | |||||||||||||||
JANUS HENDERSON VIT FORTY PORTFOLIO |
||||||||||||||||||||||||
2018 |
50 | $ | 45.53 | $ | 2,257 | 1.39 % | 0.00 % | 1.98 | % | |||||||||||||||
2017 |
39 | $ | 44.64 | $ | 1,732 | 0.00 % | 0.00 % | 30.31 | % | |||||||||||||||
2016 |
94 | $ | 34.26 | $ | 3,231 | 0.00 % | 0.00 % | 2.20 | % | |||||||||||||||
2015 |
55 | $ | 33.52 | $ | 1,855 | 0.68 % | 0.00 % | 12.22 | % | |||||||||||||||
2014 |
27 | $ | 29.87 | $ | 801 | 0.17 % | 0.00 % | 8.74 | % | |||||||||||||||
JANUS HENDERSON VIT GLOBAL RESEARCH PORTFOLIO |
||||||||||||||||||||||||
2018 |
59 | $ | 12.93 | $ | 757 | 1.15 % | 0.00 % | (6.87) | % | |||||||||||||||
2017 |
58 | $ | 13.88 | $ | 800 | 0.85 % | 0.00 % | 27.03 | % | |||||||||||||||
2016 |
56 | $ | 10.93 | $ | 615 | 1.10 % | 0.00 % | 2.06 | % | |||||||||||||||
2015 |
51 | $ | 10.71 | $ | 550 | 0.50 % | 0.00 % | (2.29) | % | |||||||||||||||
2014 |
75 | $ | 10.96 | $ | 826 | 1.21 % | 0.00 % | 7.45 | % | |||||||||||||||
JANUS HENDERSON VIT GLOBAL TECHNOLOGY PORTFOLIO |
||||||||||||||||||||||||
(Effective date 05/05/2008) |
||||||||||||||||||||||||
2018 |
22 | $ | 42.08 | $ | 922 | 1.00 % | 0.00 % | 1.19 | % | |||||||||||||||
2017 |
8 | $ | 41.59 | $ | 334 | 0.47 % | 0.00 % | 45.09 | % | |||||||||||||||
2016 |
4 | $ | 28.67 | $ | 114 | 0.19 % | 0.00 % | 14.21 | % | |||||||||||||||
2015 |
3 | $ | 25.10 | $ | 73 | 0.80 % | 0.00 % | 4.85 | % | |||||||||||||||
2014 |
3 | $ | 23.93 | $ | 71 | 0.00 % | 0.00 % | 9.57 | % | |||||||||||||||
JANUS HENDERSON VIT OVERSEAS PORTFOLIO |
||||||||||||||||||||||||
(Effective date 05/01/2006) |
||||||||||||||||||||||||
2018 |
2 | $ | 24.73 | $ | 49 | 1.76 % | 0.00 % | (14.94) | % | |||||||||||||||
2017 |
2 | $ | 29.07 | $ | 59 | 1.64 % | 0.00 % | 31.12 | % | |||||||||||||||
2016 |
3 | $ | 22.17 | $ | 56 | 4.48 % | 0.00 % | (6.45) | % | |||||||||||||||
2015 |
3 | $ | 23.70 | $ | 76 | 0.42 % | 0.00 % | (8.59) | % | |||||||||||||||
2014 |
7 | $ | 25.93 | $ | 188 | 5.82 % | 0.00 % | (11.86) | % |
(Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
FINANCIAL HIGHLIGHTS | At December 31 | For the year or period ended December 31 | ||||||||||||||||||||||
INVESTMENT DIVISIONS |
Units (000s) | Unit Fair Value | Net Assets (000s) | Investment Income Ratio |
Expense Ratio | Total Return | ||||||||||||||||||
LORD ABBETT SERIES DEVELOPING GROWTH PORTFOLIO |
||||||||||||||||||||||||
(Effective date 05/01/2015) |
||||||||||||||||||||||||
2018 |
7 | $ | 11.64 | $ | 81 | 0.00 % | 0.00 % | 4.88 | % | |||||||||||||||
2017 |
2 | $ | 11.10 | $ | 27 | 0.00 % | 0.00 % | 29.92 | % | |||||||||||||||
2016 |
2 | $ | 8.54 | $ | 21 | 0.00 % | 0.00 % | (2.61) | % | |||||||||||||||
MFS VIT III MID CAP VALUE PORTFOLIO |
||||||||||||||||||||||||
(Effective date 04/28/2017) |
||||||||||||||||||||||||
2018 |
0 | * | $ | 9.71 | $ | 2 | 0.00 % | 0.00 % | (11.45) | % | ||||||||||||||
MFS VIT MID CAP GROWTH SERIES |
||||||||||||||||||||||||
(Effective date 04/28/2017) |
||||||||||||||||||||||||
2018 |
0 | * | $ | 11.66 | $ | 2 | 0.00 % | 0.00 % | 1.23 | % | ||||||||||||||
MFS VIT TOTAL RETURN BOND SERIES |
||||||||||||||||||||||||
(Effective date 04/28/2017) |
||||||||||||||||||||||||
2018 |
90 | $ | 10.13 | $ | 908 | 3.33 % | 0.00 % | (1.08) | % | |||||||||||||||
2017 |
85 | $ | 10.24 | $ | 866 | 3.32 % | 0.00 % | 2.42 | % | |||||||||||||||
MFS VIT VALUE SERIES |
||||||||||||||||||||||||
(Effective date 05/01/2015) |
||||||||||||||||||||||||
2018 |
30 | $ | 11.75 | $ | 356 | 1.61 % | 0.00 % | (10.09) | % | |||||||||||||||
2017 |
26 | $ | 13.07 | $ | 337 | 2.02 % | 0.00 % | 17.66 | % | |||||||||||||||
2016 |
15 | $ | 11.11 | $ | 170 | 3.25 % | 0.00 % | 14.08 | % | |||||||||||||||
NEUBERGER BERMAN AMT GUARDIAN PORTFOLIO |
||||||||||||||||||||||||
2018 |
1 | $ | 28.36 | $ | 19 | 0.49 % | 0.00 % | (7.61) | % | |||||||||||||||
2017 |
5 | $ | 30.68 | $ | 138 | 0.31 % | 0.00 % | 25.41 | % | |||||||||||||||
2016 |
6 | $ | 24.47 | $ | 149 | 0.55 % | 0.00 % | 8.73 | % | |||||||||||||||
2015 |
7 | $ | 22.50 | $ | 153 | 0.73 % | 0.00 % | (4.97) | % | |||||||||||||||
2014 |
5 | $ | 23.68 | $ | 128 | 0.46 % | 0.00 % | 9.02 | % | |||||||||||||||
NEUBERGER BERMAN AMT LARGE CAP VALUE PORTFOLIO |
||||||||||||||||||||||||
2018 |
0 | * | $ | 27.82 | $ | 8 | 1.08 % | 0.00 % | (1.04) | % | ||||||||||||||
2017 |
0 | * | $ | 28.19 | $ | 12 | 0.56 % | 0.00 % | 13.36 | % | ||||||||||||||
2016 |
1 | $ | 24.86 | $ | 14 | 0.70 % | 0.00 % | 27.37 | % | |||||||||||||||
2015 |
1 | $ | 19.51 | $ | 17 | 0.70 % | 0.00 % | (11.80) | % | |||||||||||||||
2014 |
1 | $ | 22.11 | $ | 26 | 0.71 % | 0.00 % | 9.89 | % | |||||||||||||||
NEUBERGER BERMAN AMT MID CAP GROWTH PORTFOLIO |
||||||||||||||||||||||||
2018 |
1 | $ | 22.55 | $ | 13 | 0.00 % | 0.00 % | (6.41) | % | |||||||||||||||
2017 |
6 | $ | 24.09 | $ | 139 | 0.00 % | 0.00 % | 25.29 | % | |||||||||||||||
2016 |
12 | $ | 19.23 | $ | 237 | 0.00 % | 0.00 % | 4.39 | % | |||||||||||||||
2015 |
13 | $ | 18.42 | $ | 244 | 0.00 % | 0.00 % | 1.28 | % | |||||||||||||||
2014 |
12 | $ | 18.18 | $ | 210 | 0.00 % | 0.00 % | 7.57 | % |
(Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
FINANCIAL HIGHLIGHTS | At December 31 | For the year or period ended December 31 | ||||||||||||||||||||||
INVESTMENT DIVISIONS |
Units (000s) | Unit Fair Value | Net Assets (000s) | Investment Income Ratio |
Expense Ratio | Total Return | ||||||||||||||||||
NEUBERGER BERMAN AMT MID CAP INTRINSIC VALUE PORTFOLIO |
||||||||||||||||||||||||
(Effective date 05/01/2006) |
||||||||||||||||||||||||
2018 |
32 | $ | 22.11 | $ | 714 | 0.63 % | 0.00 % | (15.28) | % | |||||||||||||||
2017 |
56 | $ | 26.10 | $ | 1,462 | 1.18 % | 0.00 % | 16.74 | % | |||||||||||||||
2016 |
32 | $ | 22.36 | $ | 712 | 0.67 % | 0.00 % | 16.17 | % | |||||||||||||||
2015 |
36 | $ | 19.24 | $ | 688 | 0.75 % | 0.00 % | (8.34) | % | |||||||||||||||
2014 |
40 | $ | 21.00 | $ | 837 | 1.12 % | 0.00 % | 13.88 | % | |||||||||||||||
NEUBERGER BERMAN AMT SUSTAINABLE EQUITY PORTFOLIO |
||||||||||||||||||||||||
(Effective date 08/20/2001) |
||||||||||||||||||||||||
2018 |
2 | $ | 31.40 | $ | 77 | 0.49 % | 0.00 % | (5.72) | % | |||||||||||||||
2017 |
2 | $ | 33.31 | $ | 77 | 0.32 % | 0.00 % | 18.43 | % | |||||||||||||||
2016 |
0 | * | $ | 28.09 | $ | 7 | 0.00 % | 0.00 % | 9.86 | % | ||||||||||||||
OPPENHEIMER MAIN STREET SMALL CAP FUND/VA |
||||||||||||||||||||||||
(Effective date 05/01/2015) |
||||||||||||||||||||||||
2018 |
81 | $ | 11.30 | $ | 913 | 0.34 % | 0.00 % | (10.32) | % | |||||||||||||||
2017 |
53 | $ | 12.60 | $ | 664 | 1.25 % | 0.00 % | 14.16 | % | |||||||||||||||
2016 |
23 | $ | 11.04 | $ | 253 | 0.01 % | 0.00 % | 18.05 | % | |||||||||||||||
2015 |
0 | * | $ | 9.36 | $ | 2 | 0.00 % | 0.00 % | (6.46) | % | ||||||||||||||
PIMCO VIT HIGH YIELD PORTFOLIO |
||||||||||||||||||||||||
2018 |
8 | $ | 23.43 | $ | 180 | 5.08 % | 0.00 % | (2.65) | % | |||||||||||||||
2017 |
11 | $ | 24.07 | $ | 254 | 4.87 % | 0.00 % | 6.60 | % | |||||||||||||||
2016 |
21 | $ | 22.58 | $ | 483 | 5.22 % | 0.00 % | 12.44 | % | |||||||||||||||
2015 |
24 | $ | 20.08 | $ | 476 | 5.27 % | 0.00 % | (1.64) | % | |||||||||||||||
2014 |
21 | $ | 20.42 | $ | 432 | 5.29 % | 0.00 % | 3.34 | % | |||||||||||||||
PIMCO VIT LOW DURATION PORTFOLIO |
||||||||||||||||||||||||
2018 |
404 | $ | 15.17 | $ | 6,123 | 1.93 % | 0.00 % | 0.34 | % | |||||||||||||||
2017 |
380 | $ | 15.12 | $ | 5,744 | 1.33 % | 0.00 % | 1.35 | % | |||||||||||||||
2016 |
326 | $ | 14.92 | $ | 4,862 | 1.44 % | 0.00 % | 1.41 | % | |||||||||||||||
2015 |
163 | $ | 14.71 | $ | 2,400 | 3.35 % | 0.00 % | 0.31 | % | |||||||||||||||
2014 |
186 | $ | 14.67 | $ | 2,735 | 1.12 % | 0.00 % | 0.89 | % | |||||||||||||||
PIMCO VIT REAL RETURN PORTFOLIO |
||||||||||||||||||||||||
2018 |
30 | $ | 17.26 | $ | 510 | 2.26 % | 0.00 % | (2.21) | % | |||||||||||||||
2017 |
65 | $ | 17.65 | $ | 1,141 | 2.57 % | 0.00 % | 3.66 | % | |||||||||||||||
2016 |
36 | $ | 17.02 | $ | 619 | 2.27 % | 0.00 % | 5.19 | % | |||||||||||||||
2015 |
69 | $ | 16.18 | $ | 1,115 | 4.66 % | 0.00 % | (2.71) | % | |||||||||||||||
2014 |
53 | $ | 16.63 | $ | 880 | 1.44 % | 0.00 % | 3.10 | % | |||||||||||||||
PIMCO VIT TOTAL RETURN PORTFOLIO |
||||||||||||||||||||||||
2018 |
181 | $ | 19.54 | $ | 3,545 | 2.54 % | 0.00 % | (0.53) | % | |||||||||||||||
2017 |
187 | $ | 19.65 | $ | 3,673 | 2.02 % | 0.00 % | 4.91 | % | |||||||||||||||
2016 |
185 | $ | 18.73 | $ | 3,456 | 2.14 % | 0.00 % | 2.68 | % | |||||||||||||||
2015 |
352 | $ | 18.24 | $ | 6,428 | 4.80 % | 0.00 % | 0.45 | % | |||||||||||||||
2014 |
461 | $ | 18.16 | $ | 8,372 | 2.21 % | 0.00 % | 4.31 | % |
(Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
FINANCIAL HIGHLIGHTS | At December 31 | For the year or period ended December 31 | ||||||||||||||||||||||
INVESTMENT DIVISIONS |
Units (000s) | Unit Fair Value | Net Assets (000s) | Investment Income Ratio |
Expense Ratio | Total Return | ||||||||||||||||||
PIONEER REAL ESTATE SHARES VCT PORTFOLIO |
||||||||||||||||||||||||
(Effective date 04/29/2016) |
||||||||||||||||||||||||
2018 |
5 | $ | 9.95 | $ | 49 | 2.89 % | 0.00 % | (7.24) | % | |||||||||||||||
2017 |
3 | $ | 10.72 | $ | 35 | 2.71 % | 0.00 % | 3.50 | % | |||||||||||||||
2016 |
0 | * | $ | 10.38 | $ | 2 | 1.07 % | 0.00 % | 3.61 | % | ||||||||||||||
PUTNAM VT EQUITY INCOME FUND |
||||||||||||||||||||||||
(Effective date 04/24/2009) |
||||||||||||||||||||||||
2018 |
10 | $ | 32.88 | $ | 341 | 0.89 % | 0.00 % | (8.27) | % | |||||||||||||||
2017 |
13 | $ | 35.84 | $ | 453 | 1.74 % | 0.00 % | 19.06 | % | |||||||||||||||
2016 |
11 | $ | 30.11 | $ | 333 | 1.91 % | 0.00 % | 13.96 | % | |||||||||||||||
2015 |
10 | $ | 26.42 | $ | 276 | 1.69 % | 0.00 % | (2.79) | % | |||||||||||||||
2014 |
9 | $ | 27.18 | $ | 235 | 1.80 % | 0.00 % | 12.97 | % | |||||||||||||||
PUTNAM VT HIGH YIELD FUND |
||||||||||||||||||||||||
(Effective date 04/24/2009) |
||||||||||||||||||||||||
2018 |
32 | $ | 22.52 | $ | 722 | 6.17 % | 0.00 % | (3.59) | % | |||||||||||||||
2017 |
36 | $ | 23.36 | $ | 831 | 5.72 % | 0.00 % | 7.22 | % | |||||||||||||||
2016 |
29 | $ | 21.78 | $ | 623 | 6.12 % | 0.00 % | 15.66 | % | |||||||||||||||
2015 |
28 | $ | 18.83 | $ | 520 | 2.01 % | 0.00 % | (5.14) | % | |||||||||||||||
2014 |
5 | $ | 19.86 | $ | 93 | 6.17 % | 0.00 % | 1.95 | % | |||||||||||||||
PUTNAM VT INCOME FUND |
||||||||||||||||||||||||
(Effective date 10/31/2014) |
||||||||||||||||||||||||
2018 |
13 | $ | 10.63 | $ | 135 | 2.96 % | 0.00 % | 0.20 | % | |||||||||||||||
2017 |
2 | $ | 10.61 | $ | 22 | 0.00 % | 0.00 % | 5.59 | % | |||||||||||||||
PUTNAM VT INTERNATIONAL GROWTH FUND |
||||||||||||||||||||||||
(Effective date 04/24/2009) |
||||||||||||||||||||||||
2018 |
2 | $ | 19.78 | $ | 45 | 0.07 % | 0.00 % | (18.41) | % | |||||||||||||||
2017 |
0 | * | $ | 24.24 | $ | 11 | 0.83 % | 0.00 % | 35.37 | % | ||||||||||||||
2016 |
0 | * | $ | 17.91 | $ | 7 | 0.00 % | 0.00 % | (6.47) | % | ||||||||||||||
PUTNAM VT SMALL CAP VALUE FUND |
||||||||||||||||||||||||
(Effective date 05/01/2015) |
||||||||||||||||||||||||
2018 |
8 | $ | 10.39 | $ | 78 | 0.63 % | 0.00 % | (19.69) | % | |||||||||||||||
2017 |
7 | $ | 12.94 | $ | 93 | 0.88 % | 0.00 % | 8.15 | % | |||||||||||||||
PUTNAM VT SUSTAINABLE FUTURE FUND |
||||||||||||||||||||||||
(Effective date 04/24/2009) |
||||||||||||||||||||||||
2018 |
3 | $ | 33.97 | $ | 88 | 0.90 % | 0.00 % | (4.64) | % | |||||||||||||||
2017 |
3 | $ | 35.62 | $ | 115 | 0.87 % | 0.00 % | 10.94 | % | |||||||||||||||
2016 |
2 | $ | 32.11 | $ | 73 | 0.69 % | 0.00 % | 13.23 | % | |||||||||||||||
2015 |
1 | $ | 28.35 | $ | 34 | 0.00 % | 0.00 % | (4.06) | % |
(Continued) |
COLI VUL-2 SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
FINANCIAL HIGHLIGHTS | At December 31 | For the year or period ended December 31 | ||||||||||||||||||||||
INVESTMENT DIVISIONS |
Units (000s) | Unit Fair Value | Net Assets (000s) | Investment Income Ratio |
Expense Ratio | Total Return | ||||||||||||||||||
ROYCE CAPITAL FUND - SMALL-CAP PORTFOLIO |
||||||||||||||||||||||||
(Effective date 05/01/2006) |
||||||||||||||||||||||||
2018 |
56 | $ | 18.14 | $ | 1,008 | 0.31 % | 0.00 % | (8.50) | % | |||||||||||||||
2017 |
55 | $ | 19.83 | $ | 1,094 | 0.82 % | 0.00 % | 5.10 | % | |||||||||||||||
2016 |
60 | $ | 18.87 | $ | 1,124 | 1.70 % | 0.00 % | 20.54 | % | |||||||||||||||
2015 |
60 | $ | 15.65 | $ | 946 | 0.38 % | 0.00 % | (11.97) | % | |||||||||||||||
2014 |
59 | $ | 17.78 | $ | 1,053 | 0.00 % | 0.00 % | 2.89 | % | |||||||||||||||
T. ROWE PRICE BLUE CHIP GROWTH PORTFOLIO |
||||||||||||||||||||||||
(Effective date 05/01/2015) |
||||||||||||||||||||||||
2018 |
110 | $ | 14.44 | $ | 1,587 | 0.00 % | 0.00 % | 1.65 | % | |||||||||||||||
2017 |
72 | $ | 14.21 | $ | 1,025 | 0.00 % | 0.00 % | 35.83 | % | |||||||||||||||
2016 |
6 | $ | 10.46 | $ | 67 | 0.00 % | 0.00 % | 0.53 | % | |||||||||||||||
VAN ECK VIP EMERGING MARKETS FUND |
||||||||||||||||||||||||
(Effective date 05/05/2008) |
||||||||||||||||||||||||
2018 |
1 | $ | 40.67 | $ | 46 | 0.28 % | 0.00 % | (23.49) | % | |||||||||||||||
2017 |
1 | $ | 53.15 | $ | 58 | 0.40 % | 0.00 % | 51.03 | % | |||||||||||||||
2016 |
1 | $ | 35.20 | $ | 37 | 0.44 % | 0.00 % | 0.10 | % | |||||||||||||||
2015 |
1 | $ | 35.14 | $ | 41 | 0.51 % | 0.00 % | (13.99) | % | |||||||||||||||
2014 |
1 | $ | 40.87 | $ | 41 | 0.44 % | 0.00 % | (0.41) | % | |||||||||||||||
VAN ECK VIP GLOBAL HARD ASSETS FUND |
||||||||||||||||||||||||
(Effective date 05/05/2008) |
||||||||||||||||||||||||
2018 |
19 | $ | 40.16 | $ | 779 | 0.00 % | 0.00 % | (28.28) | % | |||||||||||||||
2017 |
16 | $ | 55.98 | $ | 921 | 0.00 % | 0.00 % | (1.70) | % | |||||||||||||||
2016 |
13 | $ | 56.95 | $ | 752 | 0.43 % | 0.00 % | 43.71 | % | |||||||||||||||
2015 |
18 | $ | 39.63 | $ | 719 | 0.03 % | 0.00 % | (33.45) | % | |||||||||||||||
2014 |
10 | $ | 59.54 | $ | 623 | 0.09 % | 0.00 % | (19.11) | % | |||||||||||||||
VICTORY RS SMALL CAP GROWTH EQUITY VIP SERIES |
||||||||||||||||||||||||
(Effective date 04/30/2018) |
||||||||||||||||||||||||
2018 |
1 | $ | 8.71 | $ | 6 | 0.00 % | 0.00 % | (12.97) | % |
(Concluded)
* The Investment Division has units and/or assets that round to less than $1,000 or 1,000 units.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Contract Owners of COLI VUL-2 Series Account and the Board of Directors of Great-West Life & Annuity Insurance Company
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of the investment divisions listed in Appendix A of the COLI VUL-2 Series Account of Great-West Life & Annuity Insurance Company (the Series Account) as of December 31, 2018, the related statements of operations and changes in net assets for the periods indicated in Appendix A, and the related notes. In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the investment divisions constituting the Series Account as of December 31, 2018, the results of their operations, and the changes in their net assets for each of the periods indicated in Appendix A, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Series Accounts management. Our responsibility is to express an opinion on the Series Accounts financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Series Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Series Account is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Series Accounts internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with mutual fund companies; when replies were not received from mutual fund companies, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ DELOITTE & TOUCHE LLP
Denver, Colorado
April 8, 2019
We have served as the auditor of one or more Great-West investment company separate accounts since 1981.
COLI VUL-2 SERIES ACCOUNT OF GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Report of Independent Registered Public Accounting Firm
APPENDIX A
Investment division | Statement of
|
Statement of operations |
Statements of changes in net assets | |||
ALGER SMALL CAP GROWTH PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
AMERICAN CENTURY INVESTMENTS VP CAPITAL APPRECIATION FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
AMERICAN CENTURY INVESTMENTS VP INCOME & GROWTH FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
AMERICAN CENTURY INVESTMENTS VP INFLATION PROTECTION FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
AMERICAN CENTURY INVESTMENTS VP INTERNATIONAL FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
AMERICAN CENTURY INVESTMENTS VP VALUE FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
AMERICAN FUNDS IS GLOBAL SMALL CAPITALIZATION FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
AMERICAN FUNDS IS GROWTH FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
AMERICAN FUNDS IS INTERNATIONAL FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
AMERICAN FUNDS IS NEW WORLD FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
BLACKROCK GLOBAL ALLOCATION VI FUND | December 31, 2018 | For the period July 9, 2018 to December 31, 2018 | For the period July 9, 2018 to December 31, 2018 | |||
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For the year ended December 31, 2018 and for the period March 24, 2017 to December 31, 2017. | |||
CLEARBRIDGE VARIABLE SMALL CAP GROWTH PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For the year ended December 31, 2018 and for the period January 26, 2017 to December 31, 2017. | |||
COLUMBIA VARIABLE PORTFOLIO - SMALL CAP VALUE FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 |
Page 1 of 7
COLI VUL-2 SERIES ACCOUNT OF GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Report of Independent Registered Public Accounting Firm
APPENDIX A
DAVIS FINANCIAL PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
DAVIS VALUE PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
DELAWARE VIP INTERNATIONAL VALUE EQUITY SERIES | December 31, 2018 | For the period May 29, 2018 to December 31, 2018 | For the period May 29, 2018 to December 31, 2018 | |||
DELAWARE VIP SMALL CAP VALUE SERIES | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
DREYFUS STOCK INDEX FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
DREYFUS VIF INTERNATIONAL EQUITY PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
DWS CORE EQUITY VIP | N/A | N/A | For the period January 1, 2017 to August 11, 2017 | |||
DWS CROCI® U.S. VIP | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
DWS GLOBAL SMALL CAP VIP | N/A | For the period January 1, 2018 to June 11, 2018 | For the period January 1, 2018 to June 11, 2018 and for the year ended December 31, 2017 | |||
DWS HIGH INCOME VIP | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
DWS SMALL CAP INDEX VIP | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
DWS SMALL MID CAP VALUE VIP | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
FEDERATED HIGH INCOME BOND FUND II | N/A | N/A | For the period January 1, 2017 to August 4, 2017 | |||
FEDERATED KAUFMANN FUND II | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
FIDELITY VIP CONTRAFUND PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
FIDELITY VIP GROWTH PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
FIDELITY VIP INVESTMENT GRADE BOND PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
FIDELITY VIP MID CAP PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GOLDMAN SACHS VIT MID CAP VALUE FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 |
Page 2 of 7
COLI VUL-2 SERIES ACCOUNT OF GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Report of Independent Registered Public Accounting Firm
APPENDIX A
GREAT-WEST AGGRESSIVE PROFILE FUND | December 31, 2018 | For the year ended December 31, 2018 | For the year ended December 31, 2018 and for the period July 11, 2017 to December 31, 2017 | |||
GREAT-WEST AGGRESSIVE PROFILE I FUND | N/A | N/A | For the period January 1, 2017 to July 11, 2017 | |||
GREAT-WEST ARIEL MID CAP VALUE FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GREAT-WEST BOND INDEX FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GREAT-WEST CONSERVATIVE PROFILE FUND | December 31, 2018 | For the year ended December 31, 2018 | For the year ended December 31, 2018 and for the period May 12, 2017 to December 31, 2017 | |||
GREAT-WEST CONSERVATIVE PROFILE I FUND | N/A | N/A | For the period January 1, 2017 to July 11, 2017. | |||
GREAT-WEST CORE BOND FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GREAT-WEST EMERGING MARKETS EQUITY FUND | December 31, 2018 | For the period December 24, 2018 to December 31, 2018 | For the period December 24, 2018 to December 31, 2018 | |||
GREAT-WEST GLOBAL BOND FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GREAT-WEST GOVERNMENT MONEY MARKET FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GREAT-WEST INTERNATIONAL INDEX FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GREAT-WEST INTERNATIONAL VALUE FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GREAT-WEST LARGE CAP GROWTH FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GREAT-WEST LIFETIME 2015 FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GREAT-WEST LIFETIME 2020 FUND | December 31, 2018 | For the year ended December 31, 2018 | For the year ended December 31, 2018 and for the period January 30, 2017 to December 31, 2017 | |||
GREAT-WEST LIFETIME 2025 FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GREAT-WEST LIFETIME 2030 FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GREAT-WEST LIFETIME 2035 FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 |
Page 3 of 7
COLI VUL-2 SERIES ACCOUNT OF GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Report of Independent Registered Public Accounting Firm
APPENDIX A
GREAT-WEST LIFETIME 2040 FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GREAT-WEST LIFETIME 2045 FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GREAT-WEST LIFETIME 2050 FUND | December 31, 2018 | For the year ended December 31, 2018 | For the year ended December 31, 2018 and for the period January 30, 2017 to December 31, 2017 | |||
GREAT-WEST LIFETIME 2055 FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GREAT-WEST LOOMIS SAYLES SMALL CAP VALUE FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GREAT-WEST MID CAP VALUE FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GREAT-WEST MODERATE PROFILE FUND | December 31, 2018 | For the year ended December 31, 2018 | For the year ended December 31, 2018 and for the period July 11, 2017 to December 31, 2017 | |||
GREAT-WEST MODERATE PROFILE I FUND | N/A | N/A | For the period January 1, 2017 to July 31, 2017. | |||
GREAT-WEST MODERATELY AGGRESSIVE PROFILE FUND | December 31, 2018 | For the year ended December 31, 2018 | For the year ended December 31, 2018 and for the period July 11, 2017 to December 31, 2017 | |||
GREAT-WEST MODERATELY AGGRESSIVE PROFILE I FUND | N/A | N/A | For the period January 1, 2017 to July 11, 2017 | |||
GREAT-WEST MODERATELY CONSERVATIVE PROFILE FUND | December 31, 2018 | For the year ended December 31, 2018 | For the year ended December 31, 2018 and for the period July 11, 2017 to December 31, 2017 | |||
GREAT-WEST MODERATELY CONSERVATIVE PROFILE I FUND | N/A | N/A | For the period January 1, 2017 to July 11, 2017 | |||
GREAT-WEST MULTI-SECTOR BOND FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GREAT-WEST REAL ESTATE INDEX FUND | December 31, 2018 | For the year ended December 31, 2018 | For the year ended December 31, 2018 and for the period January 30, 2017 to December 31, 2017 | |||
GREAT-WEST S&P MID CAP 400® INDEX FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GREAT-WEST S&P SMALL CAP 600® INDEX FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 |
Page 4 of 7
COLI VUL-2 SERIES ACCOUNT OF GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Report of Independent Registered Public Accounting Firm
APPENDIX A
GREAT-WEST SHORT DURATION BOND FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GREAT-WEST SMALL CAP GROWTH FUND | N/A | For the period June 11, 2018 to July 13, 2018 | For the period June 11, 2018 to July 13, 2018 | |||
GREAT-WEST T. ROWE PRICE EQUITY INCOME FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GREAT-WEST T. ROWE PRICE MID CAP GROWTH FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
GREAT-WEST U.S. GOVERNMENT SECURITIES FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
INVESCO V.I. CORE EQUITY FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
INVESCO V.I. DIVERSIFIED DIVIDEND FUND | N/A | N/A | For the period January 1, 2017 to January 2, 2017 | |||
INVESCO V.I. GLOBAL REAL ESTATE FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
INVESCO V.I. HEALTH CARE FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
INVESCO V.I. INTERNATIONAL GROWTH FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
INVESCO V.I. MID CAP CORE EQUITY FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
INVESCO V.I. TECHNOLOGY FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
JANUS HENDERSON VIT BALANCED PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
JANUS HENDERSON VIT FLEXIBLE BOND PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
JANUS HENDERSON VIT FORTY PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
JANUS HENDERSON VIT GLOBAL RESEARCH PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
JANUS HENDERSON VIT GLOBAL TECHNOLOGY PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
JANUS HENDERSON VIT OVERSEAS PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 |
Page 5 of 7
COLI VUL-2 SERIES ACCOUNT OF GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Report of Independent Registered Public Accounting Firm
APPENDIX A
JPMORGAN INSURANCE TRUST INTREPID MID CAP PORTFOLIO | N/A | N/A | For the period January 1, 2017 to April 18, 2017 | |||
LORD ABBETT SERIES DEVELOPING GROWTH PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
MFS VIT III MID CAP VALUE PORTFOLIO | December 31, 2018 | For the period December 24, 2018 to December 31, 2018 | For the period December 24, 2018 to December 31, 2018 | |||
MFS VIT MID CAP GROWTH SERIES | December 31, 2018 | For the period December 24, 2018 to December 31, 2018 | For the period December 24, 2018 to December 31, 2018 | |||
MFS VIT TOTAL RETURN BOND SERIES | December 31, 2018 | For the year ended December 31, 2018 | For the year ended December 31, 2018 and for the period August 4, 2017 to December 31, 2017 | |||
MFS VIT VALUE SERIES | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
NEUBERGER BERMAN AMT GUARDIAN PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
NEUBERGER BERMAN AMT LARGE CAP VALUE PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
NEUBERGER BERMAN AMT MID CAP GROWTH PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
NEUBERGER BERMAN AMT MID CAP INTRINSIC VALUE PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
NEUBERGER BERMAN AMT SUSTAINABLE EQUITY PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
OPPENHEIMER MAIN STREET SMALL CAP FUND/VA | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
PIMCO VIT HIGH YIELD PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
PIMCO VIT LOW DURATION PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
PIMCO VIT REAL RETURN PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
PIMCO VIT TOTAL RETURN PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 |
Page 6 of 7
COLI VUL-2 SERIES ACCOUNT OF GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Report of Independent Registered Public Accounting Firm
APPENDIX A
PIONEER REAL ESTATE SHARES VCT PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
PUTNAM VT EQUITY INCOME FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
PUTNAM VT HIGH YIELD FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
PUTNAM VT INCOME FUND | December 31, 2018 | For the year ended December 31, 2018 | For the year ended December 31, 2018 and for the period July 24, 2017 to December 31, 2017 | |||
PUTNAM VT INTERNATIONAL GROWTH FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
PUTNAM VT SMALL CAP VALUE FUND | December 31, 2018 | For the year ended December 31, 2018 | For the year ended December 31, 2018 and for the period January 30, 2017 to December 31, 2017 | |||
PUTNAM VT SUSTAINABLE FUTURE FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
ROYCE CAPITAL FUNDMICRO-CAP PORTFOLIO | N/A | For the period January 1, 2018 to May 23, 2018 | For the period January 1, 2018 to May 23, 2018 and for the year ended December 31, 2017 | |||
ROYCE CAPITAL FUNDSMALL-CAP PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
T. ROWE PRICE BLUE CHIP GROWTH PORTFOLIO | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
VAN ECK VIP EMERGING MARKETS FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
VAN ECK VIP GLOBAL HARD ASSETS FUND | December 31, 2018 | For the year ended December 31, 2018 | For each of the two years in the period ended December 31, 2018 | |||
VICTORY RS SMALL CAP GROWTH EQUITY VIP SERIES | December 31, 2018 | For the period December 24, 2018 to December 31, 2018 | For the period December 24, 2018 to December 31, 2018 |
Page 7 of 7
(a) | Board of Directors Resolution. Resolution authorizing establishment of Registrant is incorporated by reference to initial Registrant’s Registration Statement on Form S-6 filed on January 22, 1999 (File No. 333-70963). | |
(b) | Custodian Agreements. None. | |
(c) | Underwriting Contracts. Copy of underwriting contract between Great-West Life & Annuity Insurance Company (“Great-West”) and GWFS Equities, Inc. (formerly Benefits Corp Equities, Inc.) is incorporated by reference to Registrant’s Post- Effective Amendment No. 9 on Form N-6 filed on April 29, 2003 (File No. 333-70963). | |
(d) | Policies. | |
(1) | Specimen Policy Form 355-CSO is incorporated by reference to Registrant’s Post-Effective Amendment No. 17 on form N-6 filed on September 30, 2008 (File No. 333-70963). | |
(2) | Specimen Term Life Insurance Rider (Form J355rider-CSO for policies issued after January 1, 2009) is incorporated by reference to Registrant’s Post-Effective Amendment No. 17 on form N-6 filed on September 30, 2008 (File No. 333-70963). | |
(3) | Specimen Policy Free-Look Endorsement is incorporated by reference to Registrant’s Post- Effective Amendment No. 1 on Form S-6 filed on April 27, 2000 (File No. 333-70963). | |
(4) | Specimen Policy Return of Expense Charge Endorsement is incorporated by reference to Registrant’s Post-Effective Amendment No. 4 on Form S-6 filed on April 25, 2001 (File No. 333- 70963). | |
(5) | Change of Insured Rider is incorporated by reference to Registrant’s Post-Effective Amendment No. 10 on Form N-6 filed on April 30, 2004 (File Nos. 333-70963 and 811-09201). | |
(6) | Specimen Fixed Account Endorsement Form 379 is incorporated by reference to Registrant’s Post- Effective Amendment No. 19 to Registration Statement on Form N-6 as filed on December 17, 2008 (File No. 333-70963). | |
(7) | Specimen Policy Form J355rev2 is incorporated by reference to Registrant’s Post-Effective Amendment No. 25 to Registration Statement on Form N-6 as filed on April 27, 2012 (File Nos. 333-70963 and 811-09201). | |
(8) | Specimen Policy Endorsement (Form ICC 12-J801) is incorporated by reference to Registrant’s Post- Effective Amendment No. 26 to Registration Statement filed on Form N-6 as filed on September 27, 2012 (File No. 333-70963). | |
(9) | Specimen Policy Form J355rev3 is incorporated by reference to Registrant’s Post-Effective Amendment No. 28 to Registration Statement on Form N-6 as filed on February 28, 2014 (File No. 333-70963). | |
(10) | Specimen Policy Form ICC14-J355X incorporated by reference to Registrant’s Post-Effective Amendment No. 29 to Registration Statement on Form N-6 as filed on December 19, 2014 (File No. 333-70963). | |
(e) | Applications. Specimen Application is incorporated by reference to Registrant’s Pre-Effective Amendment No. 1 on Form S-6 filed on June 23, 1999 (File No. 333-70963). | |
(f) | Depositor’s Certificate of Incorporation and By-Laws. | |
(1) | Depositor’s Certificate of Incorporation are incorporated by reference to Registrant’s Post-Effective Amendment No. 32 on Form N-6 as filed on April 29, 2015 (File Nos. 333-70963 and 811-09201). | |
(2) | By-Laws of Great-West are incorporated by reference to Registrant’s Post-Effective Amendment No. 32 on Form N-6 as filed on April 29, 2015 (File Nos. 333-70963 and 811-09201). | |
(g) | Reinsurance Contracts. |
(1) | Automatic YRT Reinsurance Agreement Effective October 1, 2008 between Great-West and The Canada Life Assurance Company (redacted), Amendment 1 to the Automatic YRT Reinsurance Agreement Effective October 1, 2008 dated August 1, 2010 (redacted) and Amendment 2 to the Automatic YRT Reinsurance Agreement Effective October 1, 2008 dated August 1, 2010 (redacted) are incorporated by reference to Post-Effective Amendment No. 6 to the Registration Statement filed by COLI VUL-4 Series Account of Great-West Life & Annuity Insurance Company of New York(“Great-West of New York”) on Form N-6 on April 26, 2011 (File No. 333-146241). | |
(2) | Automatic/Facultative YRT Guaranteed Issue and Fully Underwritten Reinsurance Agreement between Great-West and RGA Reinsurance Company effective May 1, 2010 (redacted) is incorporated by reference to Post-Effective Amendment No. 6 to the Registration Statement filed by COLI VUL-4 Series Account of Great-West of New York on Form N-6 on April 26, 2011 (File No. 333-146241). | |
(3) | Automatic Yearly Renewable Term Reinsurance Agreement between Great-West and SCOR Global Life U.S. Re Insurance Company effective May 1, 2010 (redacted) is incorporated by reference to Post- Effective Amendment No. 6 to the Registration Statement filed by COLI VUL-4 Series Account of Great-West of New York on Form N-6 on April 26, 2011 (File No. 333-146241). | |
(4) | Automatic Yearly Renewable Term Reinsurance Agreement between Great-West and Hannover Life Reassurance Company of America effective May 1, 2010 (redacted) is incorporated by reference to Post-Effective Amendment No. 6 to the Registration Statement filed by COLI VUL- 4 Series Account of Great-West of New York on Form N-6 on April 26, 2011 (File No. 333- 146241). | |
(5) | Reinsurance Agreement between Great-West and Protective Life Insurance Company effective June 3, 2019 is filed herewith. | |
(h) | Participation Agreements. | |
(1) | Participation Agreement among Great-West, AIM Variable Insurance Funds, Inc., and AIM Distributors, Inc., dated April 30, 2004 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(2) | First Amendment to Participation Agreement among Great-West, AIM Variable Insurance Funds and AIM Distributors, Inc. dated April 30, 2004 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(3) | Second Amendment to Participation Agreement among Great-West, AIM Variable Insurance Funds and AIM Distributors dated August 1, 2006, is incorporated by reference to Pre Effective Amendment No. 1 to the Registration Statement filed by COLI VUL-4 Series Account of Great-West of New York on Form N-6 filed on December 4, 2007 (File No. 333-146241). | |
(4) | Third Amendment to Participation Agreement among Great-West, AIM Variable Insurance Funds and AIM Distributors dated November 15, 2007, is incorporated by reference to Pre Effective Amendment No. 1 to the Registration Statement filed by COLI VUL-4 Series Account of Great-West of New York on Form N-6 filed on December 4, 2007 (File No. 333-146241). | |
(5) | Fourth Amendment to Participation Agreement among Great-West, AIM Variable Insurance Funds and AIM Distributors dated April 30, 2010 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(6) | Fifth Amendment to Participation Agreement among Great-West, AIM Variable Insurance Funds and AIM Distributors dated November 6, 2013 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(7) | Fund Participation Agreement among Great-West, The Alger American Fund, Fred Alger Management, Inc., and Fred Alger & Company, Inc. dated September 13, 1999 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). |
(8) | Amendment to Fund Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), The Alger American Fund, Fred Alger Management, Inc., and Fred Alger & Company, Inc. dated August 17, 2006 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(9) | Second Amendment to the Fund Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), The Alger American Fund, Fred Alger Management, Inc., and Fred Alger & Company, Inc. dated November 2, 2009 is incorporated by reference to Registrant’s Post-Effective Amendment No. 21 on form N-6 filed on April 16, 2010 (File No. 333- 70963). | |
(10) | Third Amendment to the Fund Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), The Alger American Fund, Fred Alger Management, Inc., and Fred Alger & Company, Inc. dated September 23, 2013 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(11) | Fund Participation Agreement among Great-West, American Century Investment Management, Inc., and Fund Distributors, dated September 14, 1999, is incorporated by reference to Registrant’s Post-Effective Amendment No. 5 to Form S-6 filed on April 24, 2002 (File No. 333-70963). | |
(12) | First Amendment to Fund Participation Agreement among Great-West, American Century Investment Management, Inc. and Fund Distributors, dated April 20, 2000, is incorporated by reference to Registrant’s Post-Effective Amendment No. 13 on Form N-6 filed on April 28, 2006 (File No. 333-70963). | |
(13) | Second Amendment to Fund Participation Agreement among Great-West, American Century Investment Management, Inc. and American Century Investment Services, Inc., dated May 1, 2002, is incorporated by reference to Registrant’s Post-Effective Amendment No. 13 on Form N-6 filed on April 28, 2006 (File No. 333-70963). | |
(14) | Third Amendment to Fund Participation Agreement among Great-West, American Century Investment Management, Inc., and American Century Investment Services, Inc., dated April 26, 2005, is incorporated by reference to Registrant’s Post-Effective Amendment No. 12 on Form N-6 filed on April 29, 2005 (File No. 333-70963). | |
(15) | Fourth Amendment to Fund Participation Agreement among Great-West, American Century Investment Management, Inc., and American Century Investment Services, Inc., dated September 17, 2007 is incorporated by reference to the Initial Registration Statement filed by COLI VUL-4 Series Account of Great-West of New York on Form N-6 filed on September 21, 2007 (File No. 333-146241). | |
(16) | Fifth Amendment to Fund Participation Agreement among Great-West, American Century Investment Management, Inc., and American Century Investment Services, Inc., dated November 18, 2008 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(17) | Sixth Amendment to Fund Participation Agreement among Great-West, Great-West of New York, American Century Investment Management, Inc., and American Century Investment Services, Inc., dated September 1, 2013 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(18) | Seventh Amendment to Fund Participation Agreement among Great-West, Great-West of New York, American Century Investment Management, Inc., and American Century Investment Services, Inc., dated May 1, 2015 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(19) | Fund Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), American Funds Insurance Series and Capital Research and Management Company dated January 28, 2008 is incorporated by reference to Registrant’s Post-Effective No. 16 on Form N-6 filed on April 21, 2008 (File No. 333-70963). |
(20) | Amendment #1 to Fund Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), American Funds Insurance Series and Capital Research and Management Company dated September 30, 2011 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(21) | Amendment #2 to Fund Participation Agreement among Great-West, Great-West of New York, American Funds Insurance Series and Capital Research and Management Company dated August 28, 2013 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(22) | Amendment #3 to Fund Participation Agreement among Great-West, Great-West of New York, American Funds Insurance Series and Capital Research and Management Company dated April 3, 2014 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(23) | Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), Columbia Funds Variable Insurance Trust, Columbia Management Advisors, LLC and Columbia Management Distributors, Inc. dated April 30, 2009 is incorporated by reference to Registrant’s Post-Effective Amendment No. 21 on form N-6 filed on April 16, 2010 (File No. 333- 70963). | |
(24) | Amendment to Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), Columbia Funds Variable Insurance Trust, Columbia Management Investment Advisors, LLC and Columbia Management Investment Distributors, Inc. dated April 29, 2011 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(25) | Amendment to Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), Columbia Funds Variable Insurance Trust, Columbia Management Investment Advisors, LLC and Columbia Management Investment Distributors, Inc. dated October 24, 2013 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(26) | Participation Agreement among Great-West, Great-West of New York, Columbia Funds Variable Insurance Trust, Columbia Management Investment Advisors, LLC and Columbia Management Investment Distributors, Inc. dated May 1, 2015 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(27) | Participation Agreement among Great-West, Great-West of New York, Columbia Funds Variable Insurance Trust I, Columbia Management Investment Advisors, LLC and Columbia Management Investment Distributors, Inc. dated May 1, 2015 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(28) | Participation Agreement among Great-West, Great-West of New York, Columbia Funds Variable Insurance Trust II, Columbia Management Investment Advisors, LLC and Columbia Management Investment Distributors, Inc. dated May 1, 2015 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(29) | Fund Participation Agreement among Great-West, Davis Variable Account Fund, Inc., Davis Selected Advisers, L.P. and Davis Distributors, LLC, dated December 16, 2004, is incorporated by reference to Registrant’s Post-Effective Amendment No. 12 on Form N-6 filed on April 29, 2005 (File No. 333-70963). | |
(30) | First Amendment to Fund Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), Davis Variable Account Fund, Inc., Davis Selected Advisers, L.P., and Davis Distributors, LLC, dated July 2, 2007 is incorporated by reference to the Initial Registration Statement filed by COLI VUL-4 Series Account of First Great-West on Form N-6 filed on September 21, 2007 (File No. 333-146241). |
(31) | Second Amendment to Fund Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), Davis Variable Account Fund, Inc., Davis Selected Advisers, L.P., and Davis Distributors, LLC, dated October 29, 2008 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(32) | Third Amendment to Fund Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), Davis Variable Account Fund, Inc., Davis Selected Advisers, L.P., and Davis Distributors, LLC, dated August 16, 2013 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(33) | Participation Agreement among Great-West, Delaware Group Premium Fund (now known as Delaware VIP Trust), Delaware Management Company, and Delaware Distributors, L.P., dated April 20, 2001 is incorporated by reference to Pre-Effective Amendment No. 1 to the Registration Statement on Form N-4, filed by Variable Annuity-1 Series Account of Great-West on April 24, 2001 (File No. 333-52956). | |
(34) | Amendment to Participation Agreement among Great-West, Delaware Group Premium Fund (now known as Delaware VIP Trust), Delaware Management Company, and Delaware Distributors, L.P., dated May 1, 2003 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(35) | Amendment to Participation Agreement among Great-West, Delaware Group Premium Fund (now known as Delaware VIP Trust), Delaware Management Company, and Delaware Distributors, L.P., dated June 2, 2003 is incorporated by reference to Post-Effective Amendment No. 10 to Variable Annuity-1 Series Account of Great-West’s Registration Statement on Form N-4, filed May 29, 2003 (File No. 333- 52956). | |
(36) | Amendment to Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), Delaware VIP Trust, Delaware Management Company, and Delaware Distributors, L.P., dated April 2005 is incorporated by reference to Post-Effective Amendment No. 16 on Form N-4 filed on April 29, 2005 (File No. 333- 01153). | |
(37) | Amendment to Participation Agreement among Great-West, Delaware VIP Trust, Delaware Management Company, and Delaware Distributors, L.P., dated October 1, 2005 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(38) | Amendment to Participation Agreement among Great-West, Delaware VIP Trust, Delaware Management Company, and Delaware Distributors, L.P., dated November 14, 2011 is incorporated by reference to Pre-Effective Amendment No. 1 to the Registration Statement filed by Variable Annuity-2 Series Account on Form N-4, filed December 30, 2011 (File No. 333-176926). | |
(39) | Amendment to Fund Participation Agreement among Great-West, Delaware VIP Trust, Delaware Management Company and Delaware Distributors, L.P. dated May 7, 2014 is incorporated by reference to Registrant’s Post-Effective Amendment No. 30 to Registration Statement on Form N-6 as filed on October 22, 2014 (File No. 333-70963). | |
(40) | Amendment to Participation Agreement among Great-West, Delaware VIP Trust, Delaware Management Company, and Delaware Distributors, L.P., dated August 1, 2014 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(41) | Amendment to Participation Agreement among Great-West, Delaware VIP Trust, Delaware Management Company, and Delaware Distributors, L.P., dated May 1, 2016 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(42) | Fund Participation Agreement among Great-West and Dreyfus Stock Index Fund Inc. (formerly known as Dreyfus Life & Annuity Index Fund, Inc.), dated December 31, 1998, is incorporated by reference to Registrant’s Post- Effective Amendment No. 5 to Form S-6 filed on April 24, 2002 (File No. 333-70963). | |
(43) | Amendment to Fund Participation Agreement among Great-West and Dreyfus Stock Index Fund, Inc. (formerly known as Dreyfus Life & Annuity Index Fund, Inc.), dated March 15, 1999, is incorporated by reference to Registrant’s Post-Effective Amendment No. 5 to Form S-6 filed on April 24, 2002 (File No. 333-70963). |
(44) | Amendment to Fund Participation Agreement among Great-West, Dreyfus Growth and Value Funds, Inc., Dreyfus Stock Index Fund, Inc. (formerly known as Dreyfus Life & Annuity Index Fund, Inc.) and Dreyfus Variable Investment Fund, dated January 1, 2002, is incorporated by reference to Registrant’s Post-Effective Amendment No. 13 on Form N-6 filed on April 28, 2006 (File No. 333-70963). | |
(45) | Third Amendment to Fund Participation Agreement among Great-West, Dreyfus Stock Index Fund, Inc. (formerly known as Dreyfus Life & Annuity Index Fund, Inc.) and Dreyfus Variable Investment Fund, dated December 1, 2004, is incorporated by reference to Registrant’s Post- Effective Amendment No. 13 on Form N-6 filed on April 28, 2006 (File No. 333-70963). | |
(46) | Fourth Amendment to Fund Participation Agreement among Great-West, First Great-West (now known as Great- West of New York), Dreyfus Investment Portfolios, The Dreyfus Socially Responsible Growth Fund, Inc., Dreyfus Stock Index Fund, Inc. and Dreyfus Variable Investment Fund, dated July 31, 2007 is incorporated by reference to Initial Registration Statement filed by COLI VUL-4 Series Account of First Great-West on Form N-6 filed on September 21, 2007 (File No. 333-146241). | |
(47) | Fifth Amendment to Fund Participation Agreement among Great-West, First Great-West (now known as Great- West of New York), Dreyfus Investment Portfolios, The Dreyfus Socially Responsible Growth Fund, Inc., Dreyfus Stock Index Fund, Inc. and Dreyfus Variable Investment Fund, dated January 9, 2009 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(48) | Sixth Amendment to Fund Participation Agreement among Great-West, First Great-West (now known as Great- West of New York), Dreyfus Investment Portfolios, The Dreyfus Socially Responsible Growth Fund, Inc., Dreyfus Stock Index Fund, Inc. and Dreyfus Variable Investment Fund, dated October 1, 2009 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(49) | Eighth Amendment to Fund Participation Agreement among Great-West, First Great-West (now known as Great- West of New York), Dreyfus Investment Portfolios, The Dreyfus Socially Responsible Growth Fund, Inc., Dreyfus Stock Index Fund, Inc. and Dreyfus Variable Investment Fund, dated November 1, 2013 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(50) | Fund Participation Agreement among Great-West, Scudder Variable Series I, Scudder Variable Series II, Scudder Investment VIT Funds, Deutsche Investment Management Americas, Inc., Deutsche Asset Management, Inc. and Scudder Distributors, dated March 31, 2005, is incorporated by reference to Registrant’s Post-Effective Amendment No. 12 on Form N-6 filed on April 29, 2005 (File No. 333-70963). | |
(51) | First Amendment to Fund Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), DWS Variable Series I (formerly Scudder Variable Series I), DWS Variable Series II (formerly Scudder Variable Series II), DWS Investments VIT Funds (formerly Scudder Investments VIT Funds), Deutsche Investment Management Americas Inc. and DWS Scudder Distributors, Inc. (formerly Scudder Distributors, Inc.) dated April 11, 2007 is incorporated by reference to the Initial Registration Statement of COLI VUL-4 Series Account of Great-West of New York filed on September 21, 2007 (File No. 333-146241). | |
(52) | Second Amendment to Fund Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), DWS Variable Series I, DWS Variable Series II, DWS Investments VIT Funds, Deutsche Investment Management Americas Inc. and DWS Scudder Distributors, Inc. dated July 1, 2007 is incorporated by reference to the Initial Registration Statement of COLI VUL-4 Series Account of Great-West of New York filed on September 21, 2007 (File No. 333-146241). | |
(53) | Third Amendment to Fund Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), DWS Variable Series I, DWS Variable Series II, DWS Investments VIT Funds, Deutsche Investment Management Americas Inc. and DWS Investments Distributors, Inc. (formerly DWS Scudder Distributors, Inc.) dated November 20, 2008 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). |
(54) | Fourth Amendment to Fund Participation Agreement among Great-West, Great-West of New York), DWS Variable Series I, DWS Variable Series II, DWS Investments VIT Funds, Deutsche Investment Management Americas Inc. and DWS Investments Distributors, Inc. dated August 10, 2013 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(55) | Fund Participation Agreement among Great-West, Great-West of New York, Eaton Vance Variable Trust and Eaton Vance Distributors, Inc. dated April 28, 2016 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(56) | Fund Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), Federated Insurance Series and Federated Securities Corp. dated March 3, 2012 is incorporated by reference to Registrant’s Post-Effective Amendment No. 25 to Registration Statement on Form N-6 as filed on April 27, 2012 (File No. 333-70963). | |
(57) | First Amendment to Fund Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), GWFS Equities, Inc., Federated Insurance Series and Federated Securities Corp. dated March 3, 2012 is incorporated by reference to Registrant’s Post- Effective Amendment No. 25 to Registration Statement on Form N-6 as filed on April 27, 2012 (File Nos. 333-70963 and 811-09201). | |
(58) | Participation Agreement among Great-West, Variable Insurance Products Fund and Fidelity Distributors Corporation, dated February 1, 1994, is incorporated by reference to Registrant’s Post-Effective Amendment No. 5 to Form S-6 filed on April 24, 2002 (File No. 333-70963). | |
(59) | First Amendment to Participation Agreement among Great-West, Variable Insurance Products Fund and Fidelity Distributors Corporation, dated November 1, 2000, is incorporated by reference to Registrant’s Post-Effective Amendment No. 5 to Form S-6 filed on April 24, 2002 (File No. 333-70963). | |
(60) | Second Amendment to Participation Agreement among Great-West, Variable Insurance Products Fund and Fidelity Distributors Corporation, dated May 1, 2001, is incorporated by reference to Registrant’s Post-Effective Amendment No. 5 to Form S-6 filed on April 24, 2002 (File No. 333- 70963). | |
(61) | Participation Agreement among Great-West, Variable Insurance Products Fund II and Fidelity Distributors Corporation, dated May 1, 1999, is incorporated by reference to Registrant’s Post- Effective Amendment No. 5 to Form S-6 filed on April 24, 2002 (File No. 333-70963). | |
(62) | First Amendment to Participation Agreement among Great-West, Variable Insurance Products Fund II and Fidelity Distributors Corporation, dated November 1, 2000, is incorporated by reference to Registrant’s Post-Effective Amendment No. 5 to Form S-6 filed on April 24, 2002 (File No. 333-70963). | |
(63) | Participation Agreement among Great-West, Variable Insurance Products Fund III and Fidelity Distributors Corporation, dated November 1, 2000, is incorporated by reference to Registrant’s Post-Effective Amendment No. 13 on Form N-6 filed on April 28, 2006 (File No. 333-70963). | |
(64) | First Amendment to Participation Agreement among Great-West, Variable Insurance Products Fund III and Fidelity Distributors Corporation, dated May 1, 2001, is incorporated by reference to Registrant’s Post-Effective Amendment No. 13 on Form N-6 filed on April 28, 2006 (File No. 333-70963). | |
(65) | Amended and Restated Fund Participation Agreement among Great-West, Variable Insurance Products Funds, and Fidelity Distributors Corporation dated October 26, 2006 is incorporated by reference to Registrant’s Post-Effective Amendment No. 14 to the Registration Statement filed on Form N-6 on April 30, 2007 (File No. 333-70963). | |
(66) | Amendment to Fund Participation Agreement among Great-West, Variable Insurance Products Funds, and Fidelity Distributors Corporation dated May 16, 2007 is incorporated by reference to Pre-Effective Amendment No. 1 to the Registration Statement filed by COLI VUL-4 Series Account of Great-West on Form N-6 filed on November 1, 2007 (File No. 333-145333). |
(67) | Second Amendment to Amended and Restated Participation Agreement among Great-West, Variable Insurance Products I, Variable Insurance Products II, Variable Insurance Products III, Variable Insurance Products IV, Variable Insurance Products V and Fidelity Distributors Corporation dated August 29, 2007 is incorporated by reference to Pre-Effective Amendment No. 1 to the Registration Statement filed by COLI VUL-4 Series Account of Great-West on Form N-6 filed on November 1, 2007 (File No. 333-145333). | |
(68) | Third Amendment to Amended and Restated Participation Agreement among Great-West, Variable Insurance Products I, Variable Insurance Products II, Variable Insurance Products III, Variable Insurance Products IV, Variable Insurance Products V and Fidelity Distributors Corporation dated October 1, 2009 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(69) | Fourth Amendment to Amended and Restated Participation Agreement among Great-West, Variable Insurance Products I, Variable Insurance Products II, Variable Insurance Products III, Variable Insurance Products IV, Variable Insurance Products V and Fidelity Distributors Corporation dated September 1, 2013 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(70) | Fifth Amendment to Amended and Restated Participation Agreement among Great-West, Variable Insurance Products I, Variable Insurance Products II, Variable Insurance Products III, Variable Insurance Products IV, Variable Insurance Products V and Fidelity Distributors Corporation dated April 28, 2017 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(71) | Participation Agreement among Great-West, Great-West of New York, Goldman Sachs Variable Insurance Trust, and Goldman, Sachs & Co. dated April 19, 2013 is incorporated by reference to Registrant’s Post-Effective Amendment No. 27 to Registration Statement on Form N-6 as filed on April 26, 2013 (File No. 333-70963). | |
(72) | First Amendment to Participation Agreement among Great-West, Great-West of New York, Goldman Sachs Variable Insurance Trust, and Goldman, Sachs & Co. dated July 22, 2013 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(73) | Agreement among Great-West and Maxim Series Fund, Inc. (now known as Great-West Funds, Inc.) dated November 1, 1999 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(74) | Amendment to Agreement among Great-West, First Great-West (now known as Great-West of New York), and Maxim Series Fund, Inc. (now known as Great-West Funds, Inc.) dated October 31, 2007, is incorporated by reference to Pre-Effective Amendment No. 1 to the Registration Statement filed by COLI VUL-4 Series Account of Great-West on Form N-6 filed on November 1, 2007 (File No. 333-145333). | |
(75) | Second Amendment to Agreement among Great-West, First Great-West (now known as Great-West of New York), and Maxim Series Fund, Inc. (now known as Great-West Funds, Inc.) dated March 23, 2008 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(76) | Amendment to Agreement among Great-West, First Great-West (now known as Great-West of New York), and Great-West Funds, Inc. dated August 2, 2013 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(77) | Fund Participation Agreement among Great-West, Great-West of New York, Maxim Series Fund, Inc. (now known as Great-West Funds, Inc.), GW Capital Management LLC, and GWFS Equities, Inc. dated December 15, 2011 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). |
(78) | Fund Participation Agreement among Great-West, Janus Aspen Series and Janus Capital Corporation, dated June 1, 1998, is incorporated by reference to Registrant’s Post-Effective Amendment No. 5 to Form S-6 filed on April 24, 2002 (File No. 333-70963). | |
(79) | Letter Agreement Supplement to Fund Participation Agreement among Great-West, Janus Aspen Series and Janus Capital Corporation, dated April 27, 1998, is incorporated by reference to Registrant’s Post-Effective Amendment No. 5 to Form S-6 filed on April 24, 2002 (File No. 333- 70963). | |
(80) | Amendment to Fund Participation Agreement among Great-West, Janus Aspen Series and Janus Capital Corporation, dated December 1, 1998, is incorporated by reference to Registrant’s Post- Effective Amendment No. 5 to Form S-6 filed on April 24, 2002 (File No. 333-70963). | |
(81) | Amendment to Fund Participation Agreement among Great-West, Janus Aspen Series and Janus Capital Corporation, dated October 4, 1999, is incorporated by reference to Registrant’s Post- Effective Amendment No. 5 to Form S-6 filed on April 24, 2002 (File No. 333-70963). | |
(82) | Amendment to Fund Participation Agreement among Great-West, Janus Aspen Series, and Janus Capital Corporation dated January 31, 2007 is incorporated by reference to Registrant’s Post- Effective Amendment No. 17 on form N-6 filed on September 30, 2008 (File No. 333-70963). | |
(83) | Third Amendment to Fund Participation Agreement between Great-West, Janus Aspen Series and Janus Capital Corporation, dated September 14, 2007 is incorporated by reference to Pre-Effective Amendment No. 1 to the Registration Statement filed by COLI VUL-4 Series Account of Great- West on Form N-6 filed on November 1, 2007 (File No. 333-145333). | |
(84) | Amendment to Fund Participation Agreement between Great-West, Janus Aspen Series and Janus Capital Corporation, dated January 16, 2013 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(85) | Amendment to Fund Participation Agreement between Great-West, Janus Aspen Series and Janus Capital Corporation, dated September 11, 2013 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(86) | Fund Participation Agreement among Great-West, Great-West of New York, Janus Aspen Series and Janus Distributors, LLC dated December 1, 2015 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(87) | Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), JPMorgan Insurance Trust, JPMorgan Investment Advisors Inc., and J.P. Morgan Investment Management Inc., dated April 24, 2009 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(88) | Amendment to Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), JPMorgan Insurance Trust, JPMorgan Investment Advisors Inc., J.P. Morgan Investment Management Inc. and JPMorgan Funds Management, Inc., dated April 13, 2015 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(89) | Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), Lord Abbett Series Fund, Inc. and Lord Abbett Distributor LLC dated September 8, 2011 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(90) | First Amendment to Participation Agreement among Great-West, Great-West of New York, Lord Abbett Series Fund, Inc. and Lord Abbett Distributor LLC dated August 21, 2013 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(91) | Second Amendment to Participation Agreement among Great-West, Great-West of New York, Lord Abbett Series Fund, Inc. and Lord Abbett Distributor LLC dated April 1, 2014 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). |
(92) | Third Amendment to Participation Agreement among Great-West, Great-West of New York, Lord Abbett Series Fund, Inc. and Lord Abbett Distributor LLC dated April 17, 2015 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(93) | Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), MFS Variable Insurance Trust I (now known as MFS Variable Insurance Trust), MFS Variable Insurance Trust II, and MFS Fund Distributors, Inc., dated April 1, 2011, is incorporated by reference to Registrant’s Post-Effective Amendment No. 27 to Registration Statement on Form N-6 as filed on April 21, 2017 (File No. 333-70963). | |
(94) | Amendment to Participation Agreement among Great-West, Great-West of New York, MFS Variable Insurance Trust, MFS Variable Insurance Trust II, and MFS Fund Distributors, Inc., dated April 2017 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(95) | Fund Participation Agreement among Great-West, Neuberger Berman Advisers Management Trust, Advisers Managers Trust, and Neuberger Berman Management Incorporated, dated January 1, 1999, is incorporated by reference to Registrant’s Post-Effective Amendment No. 5 to Form S-6 filed on April 24, 2002 (File No. 333-70963). | |
(96) | Amendment to Fund Participation Agreement among Great-West, Neuberger Berman Advisers Management Trust, Advisers Managers Trust, and Neuberger Berman Management Incorporated, dated October 24, 2007 is incorporated by reference to Pre-Effective Amendment No. 1 to the Registration Statement filed by COLI VUL-4 Series Account of Great-West of New York on Form N-6 filed on December 4, 2007 (File No. 333-146241). | |
(97) | Fund Participation Agreement among Great-West, PIMCO Variable Insurance Trust, Pacific Investment Management Company LLC and PIMCO Advisors Distributors LLC, dated March 1, 2004 is incorporated by reference to Registrant’s Post-Effective Amendment No. 10 on Form N-6 filed on May 3, 2004 (File No. 333-70963). | |
(98) | First Amendment to Participation Agreement among Great-West, PIMCO Variable Trust, Pacific Investment Management Company, LLC, Allianz Global Investors Distributors, LLC and First- Great-West dated August 31, 2007 is incorporated by reference to Pre-Effective Amendment No. 1 to the Registration Statement filed by COLI VUL-4 Series Account of Great-West on Form N-6 filed on November 1, 2007 (File No. 333-145333). | |
(99) | Second Amendment to Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), PIMCO Variable Insurance Trust, Pacific Investment Management Company, LLC and Allianz Global Investors Distributors, LLC dated November 5, 2008 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(100) | Participation Agreement among Great-West, Great-West of New York, Pioneeer Variable Contracts Trust, Pioneer Investment Management, Inc. and Pioneer Funds Distributor, Inc. dated 2016 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(101) | Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), Putnam Variable Trust and Putnam Management Limited Partnership dated April 30, 2008 is incorporated by reference to Registrant’s Post-Effective Amendment No. 17 on form N-6 filed on September 30, 2008 (File No. 333-70963). | |
(102) | First Amendment to Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), Putnam Variable Trust and Putnam Management Limited Partnership, dated July 22, 2009 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). |
(103) | Fund Participation Agreement among Great-West, Royce Capital Fund, and Royce & Associates, LLC dated September 30, 2005 is incorporated by reference to Registrant’s Post-Effective Amendment No. 14 to the Registration Statement filed on Form N-6 on April 30, 2007 (File No. 333-70963). | |
(104) | Amendment to Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), Royce Capital Fund, and Royce and Associates, LLC dated May 1, 2009 is incorporated by reference to Registrant’s Post-Effective Amendment No. 21 on form N-6 filed on April 16, 2010 (File No. 333-70963). | |
(105) | Second Amendment to Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), Royce Capital Fund, and Royce and Associates, LLC dated September 18, 2013 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(106) | Fund Participation Agreement among Great-West, T. Rowe Price Equity Series, Inc., T. Rowe Price Fixed Income Series, Inc., T. Rowe Price International Series, Inc. and T. Rowe Price Investment Services, Inc. dated February 1, 2002 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(107) | First Amendment to Fund Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), T. Rowe Price Equity Series, Inc., T. Rowe Price Fixed Income Series, Inc., T. Rowe Price International Series, Inc. and T. Rowe Price Investment Services, Inc. dated November 10, 2008 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(108) | Second Amendment to Fund Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), T. Rowe Price Equity Series, Inc., T. Rowe Price Fixed Income Series, Inc., T. Rowe Price International Series, Inc. and T. Rowe Price Investment Services, Inc. dated November 30, 2011 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(109) | Amendment to Fund Participation Agreement among Great-West, Great-West of New York, T. Rowe Price Equity Series, Inc., T. Rowe Price Fixed Income Series, Inc., T. Rowe Price International Series, Inc. and T. Rowe Price Investment Services, Inc. dated August 29, 2013 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(110) | Amendment to Fund Participation Agreement among Great-West, Great-West of New York, T. Rowe Price Equity Series, Inc., T. Rowe Price Fixed Income Series, Inc., T. Rowe Price International Series, Inc. and T. Rowe Price Investment Services, Inc. dated March 17, 2014 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(111) | Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), Van Eck Worldwide Insurance Trust, Van Eck Securities Corporation and Van Eck Associates Corporation dated October 11, 2007 is incorporated by reference to Registrant’s Post-Effective Amendment No. 16 on Form N-6, as filed on April 21, 2008 (File No. 333-70963). | |
(112) | Amendment No. 1 to Participation Agreement among Great-West, First Great-West (now known as Great-West of New York), Van Eck Worldwide Insurance Trust, Van Eck Securities Corporation and Van Eck Associates Corporation dated October 1, 2009 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(113) | Amendment No. 3 to Participation Agreement among Great-West, Great-West of New York, Van Eck Worldwide Insurance Trust, Van Eck Securities Corporation and Van Eck Associates Corporation dated August 28, 2014 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). |
(114) | Participation Agreement among Great-West, Great-West of New York, Victory Variable Insurance Funds, Victory Capital Management Inc. and Victory Capital Advisers, Inc. dated May 1, 2018 is incorporated by reference to Registrant’s Post- Effective Amendment No. 36 on Form N-6 filed on April 22, 2019 (File No. 333-70963). | |
(i) | Administrative Contracts. None. | |
(j) | Other Material Contracts. Form of Rule 22c-2 Shareholder Information Agreement is incorporated by reference to Post Effective Amendment No. 14 to the Registration Statement filed on Form N-6 on April 30, 2007 (File No. 333-70963). | |
(k) | Legal Opinion. An opinion and consent of counsel regarding the legality of the securities being registered is incorporated by reference to Registrant’s Pre-Effective Amendment No. 1 to Form S-6 filed on June 23, 1999 (File No. 333-70963). | |
(l) | Actuarial Opinion. None. | |
(m) | Calculation of Hypothetical Illustration Value is incorporated by reference to Registrant’s Post Effective Amendment No. 9 to Form N-6 filed on April 29, 2003 (File No. 333-70963). | |
(n) | Other Opinions. | |
(1) | Legal Consent of Carlton Fields, P.A. is filed herewith. | |
(2) | Written consent of Deloitte & Touche LLP is filed herewith. | |
(o) | Omitted Financial Statements. None | |
(p) | Initial Capital Agreements. None. | |
(q) | Redeemability Exemption. None. | |
(r) | Powers of Attorney for Directors Bernbach, Bienfait, Coutu, A. Desmarais, P. Desmarais, Jr., Doer, Fleming, Généreux, Louvel, Madoff, Mahon, Orr, Ryan, Jr., Selitto, Tretiak, and Walsh are incorporated by reference to Registrant’s Post- Effective Amendment No. 37 on Form N-6 filed on April 25, 2019 (File No. 333-70963). |
Name | Principal Business Address | Positions and Offices with Depositor |
R.J. Orr | (4) | Chairman of the Board |
E.F. Murphy, III | (2) | Director, President and Chief Executive Officer |
J.L. Bernbach | 32
East 57th Street, 10th Floor New York, NY 10022 |
Director |
R. Bienfait | (4) | Director |
M.R. Coutu | Brookfield
Asset Management Inc. 335 8th Avenue SW, Suite 1700 Calgary, AB T2P 1C9 |
Director |
A.R. Desmarais | (4) | Director |
P.G. Desmarais, Jr. | (4) | Director |
G.A. Doer | (1) | Director |
G.J. Fleming | (2) | Director |
C. Généreux | (4) | Director |
A. Louvel | 930
Fifth Avenue, Apt. 17D New York, NY 10021 |
Director |
P.B. Madoff | 260
West 11th Street New York, NY 10021 |
Director |
P.A. Mahon | (1) | Director |
D.M. Raymond | First
Canadian Place 100 King Street West Suite 7050 – 70th Floor Toronto, ON M5X 1C7 |
Director |
Name | Principal Business Address | Positions and Offices with Depositor |
R.L. Reynolds | (2) | Director |
T.T. Ryan, Jr. | JP
Morgan Chase 270 Park Avenue, Floor 47 New York, NY 10017 |
Director |
J.J. Selitto | 437
West Chestnut Hill Avenue Philadelphia, PA 19118 |
Director |
G.D. Tretiak | (4) | Director |
B.E. Walsh | Saguenay
Capital, LLC The Centre at Purchase Two Manhattanville Road, Suite 403 Purchase, NY 10577 |
Director |
S.C. Sipple | (2) | President, Great-West Investments |
A.S. Bolotin | (2) | Executive Vice President & Chief Financial Officer |
C.M. Moritz | (2) | Senior Vice President and Chief Financial Officer, Empower Retirement |
S.M. Sanchez | (2) | Chief Human Resources Officer |
K.I. Schindler | (3) | Chief Compliance Officer |
R.G. Schultz | (3) | General Counsel, Chief Legal Officer, and Secretary |
J.F. Bevacqua | (2) | Chief Risk Officer |
R.H. Linton, Jr. | (2) | Executive Vice President, Empower Retirement Operations |
R.G. Capone | (2) | Senior Vice President, GWI Sales |
J.E. Brown | (2) | Senior Vice President, Separate Accounts |
S.E. Jenks | (2) | Senior Vice President, Marketing |
W.J. McDermott | (2) | Senior Vice President, Large, Mega, NFP Market |
D.G. McLeod | (2) | Senior Vice President, Product Management |
D.A. Morrison | (2) | Senior Vice President, Government Markets |
J.M. Smolen | (2) | Senior Vice President, Core Market |
C.G. Step | (2) | Senior Vice President, Empower Retirement Products |
C. E. Waddell | (2) | Senior Vice President, Retirement Solutions |
I. | OWNERSHIP OF POWER CORPORATION OF CANADA |
The Desmarais Family Residuary Trust | |||||
99.999% - Pansolo Holding Inc. | |||||
59.11% - Power Corporation of Canada | |||||
The total voting rights of Power Corporation of Canada (PCC) controlled directly and indirectly by the Desmarais Family Residuary Trust are as follows. There are issued and outstanding as of December 31, 2018 417,101,146 Subordinate Voting Shares (SVS) of PCC carrying one vote per share and 48,854,772 Participating Preferred Shares (PPS) carrying 10 votes per share; hence the total voting rights are 905,648,866. | |||||
Pansolo Holding Inc. owns directly and indirectly 48,363,392 SVS and 48,697,962 PPS, entitling Pansolo Holding Inc. to an aggregate percentage of voting rights of 535,343,012 or 59.11% of the total voting rights attached to the shares of PCC. |
II. | OWNERSHIP BY POWER CORPORATION OF CANADA |
A. | Great-West Life & Annuity Insurance Company Group of Companies (U.S. insurance) |
Power Corporation of Canada | |||||||||
100.0% - 171263 Canada Inc. | |||||||||
65.515% - Power Financial Corporation | |||||||||
67.788% - Great-West Lifeco Inc. | |||||||||
100.0% - Great-West Financial (Canada) Inc. | |||||||||
100.0% - Great-West Financial (Nova Scotia) Co. | |||||||||
100.0% - Great-West Lifeco U.S. LLC | |||||||||
100.0% - Great-West Services Singapore I Private Limited | |||||||||
100.0% - Great-West Services Singapore II Private Limited | |||||||||
99.0% - Great West Global Business Services India Private Limited (1% owned by Great-West Services Singapore I Private Limited) | |||||||||
1.0% - Great West Global Business Services India Private Limited (99% owned by Great-West Services Singapore II Private Limited) | |||||||||
100.0% - GWL&A Financial Inc. | |||||||||
60.0% - Great-West Life & Annuity Insurance Capital (Nova Scotia) Co. (40% owned by Great-West Life & Annuity Insurance Capital, LP) | |||||||||
40.0% - Great-West Life & Annuity Insurance Capital, LLC (60% owned by GWL&A Financial Inc.) | |||||||||
60.0% - Great-West Life & Annuity Insurance Capital, LLC (40% owned by Great-West Life & Annuity Insurance Capital (Nova Scotia) Co.) | |||||||||
100.0% - Great-West Life & Annuity Insurance Company (Fed ID # 84-0467907 - NAIC # 68322, CO) |
100.0% - Great-West Life & Annuity Insurance Company of New York (Fed ID # 13-2690792 - NAIC # 79359, NY) | |||||||||
100.0% - Advised Assets Group, LLC | |||||||||
100.0% - GWFS Equities, Inc. | |||||||||
100.0% - Great-West Life & Annuity Insurance Company of South Carolina | |||||||||
100.0% - Emjay Corporation | |||||||||
100.0% - FASCore, LLC | |||||||||
100.0% - Great-West Capital Management, LLC | |||||||||
100.0% - Great-West Trust Company, LLC | |||||||||
100.0% - Lottery Receivable Company One LLC | |||||||||
100.0% - LR Company II, L.L.C. | |||||||||
100.0% - Singer Collateral Trust IV | |||||||||
100.0% - Great-West Financial Retirement Plan Services, LLC | |||||||||
100.0% - Empower Insurance Agency, LLC |
B. | Putnam Investments Group of Companies (Mutual Funds) |
Power Corporation of Canada | |||||||||||||
100.0% - 171263 Canada Inc. | |||||||||||||
65.515% - Power Financial Corporation | |||||||||||||
67.788% - Great-West Lifeco Inc. | |||||||||||||
100.0% - Great-West Life & Annuity Insurance Capital, LLC II | |||||||||||||
100.0% - Great-West Financial (Canada) Inc. | |||||||||||||
100.0% - Great-West Financial (Nova Scotia) Co. | |||||||||||||
100% - Great-West Lifeco U.S. LLC | |||||||||||||
99.0% - Great-West Lifeco U.S. Holdings, L.P. (1% owned by Great-West Lifeco U.S. Holdings, LLC) | |||||||||||||
100.0% - Great-West Lifeco U.S. Holdings, LLC | |||||||||||||
1% - Great-West Lifeco U.S. Holdings, L.P. (99% owned by Great-West Lifeco U.S. LLC) | |||||||||||||
100.0% - Putnam Investments, LLC | |||||||||||||
100.0% - Putnam Acquisition Financing, Inc. | |||||||||||||
100.0% - Putnam Acquisition Financing LLC | |||||||||||||
100.0% - Putnam U.S. Holdings I, LLC | |||||||||||||
20.0% - PanAgora Asset Management, Inc (80% owned by PanAgora Holdings, Inc.) | |||||||||||||
100.0% - Putnam Investment Management, LLC | |||||||||||||
100.0% - Putnam Fiduciary Trust Company | |||||||||||||
100.0% - Putnam Investor Services, Inc. | |||||||||||||
100.0% - Putnam Retail Management GP, Inc. | |||||||||||||
1.0% - Putnam Retail Management Limited Partnership (99% owned by Putnam U.S. Holdings I, LLC) | |||||||||||||
99.0% - Putnam Retail Management Limited Partnership (1% owned by Putnam Retail Management GP, Inc.) | |||||||||||||
100.0% - PanAgora Holdings, Inc. | |||||||||||||
80.00% - PanAgora Asset Management, Inc. (20.0% owned by Putnam U.S. Holdings I, LLC) | |||||||||||||
100.0% - Putnam Investment Holdings, L.L.C. | |||||||||||||
100.0% - Savings Investments, LLC | |||||||||||||
100.0% - Putnam Capital, LLC | |||||||||||||
100.0% - The Putnam Advisory Holdings II, LLC | |||||||||||||
100.0% - Putnam Investments (Ireland) Limited | |||||||||||||
100.0% - Putnam Investments Australia Pty Limited |
100.0% - Putnam Investments Securities Co., Ltd. | |||||||||||||
100.0% - Putnam International Distributors, Ltd. | |||||||||||||
100.0% - Putnam Investments Argentina S.A. | |||||||||||||
100.0% - Putnam Investments Limited | |||||||||||||
100.0% - The Putnam Advisory Company, LLC | |||||||||||||
100.0% - Putnam Advisory Holdings, LLC | |||||||||||||
100.0% - Putnam Investments Canada ULC |
C. | The Great-West Life Assurance Company Group of Companies (Canadian insurance) |
Power Corporation of Canada | ||||||||||||||||||||||||||||||||
100.0% - 171263 Canada Inc. | ||||||||||||||||||||||||||||||||
65.515% - Power Financial Corporation | ||||||||||||||||||||||||||||||||
67.788% - Great-West Lifeco Inc. | ||||||||||||||||||||||||||||||||
100.0% - 2142540 Ontario Inc. | ||||||||||||||||||||||||||||||||
1.0% - Great-West Lifeco Finance (Delaware) LP (99.0% owned by Great-West Lifeco Inc.) | ||||||||||||||||||||||||||||||||
40.0% - Great-West Lifeco Finance (Delaware) LLC (60.0% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
100.0% - Great-West Lifeco Finance 2017 I, LLC | ||||||||||||||||||||||||||||||||
100.0% - 2023308 Ontario Inc. | ||||||||||||||||||||||||||||||||
1.0% - Great-West Life & Annuity Insurance Capital, LP (99.0% owned by Great-West Lifeco Inc.) | ||||||||||||||||||||||||||||||||
40.0% - Great-West Life & Annuity Insurance Capital (Nova Scotia) Co. (60.0% owned by GWL&A Financial Inc.) | ||||||||||||||||||||||||||||||||
40.0% - Great-West Life & Annuity Insurance Capital, LLC (60.0% owned by GWL&A Financial Inc.) | ||||||||||||||||||||||||||||||||
40.0% - Great-West Life & Annuity Insurance Capital (Nova Scotia) Co. II (60.0% owned by GWL&A Financial Inc.) | ||||||||||||||||||||||||||||||||
40.0% - Great-West Life & Annuity Insurance Capital, LLC II (60.0% owned by GWL&A Financial Inc.) | ||||||||||||||||||||||||||||||||
100.0% - 2171866 Ontario Inc | ||||||||||||||||||||||||||||||||
100.0% - 2619747 Ontario Inc | ||||||||||||||||||||||||||||||||
1.0% - Great-West Lifeco Finance 2018, LP (99.0% owned by Great-West Lifeco Inc.) | ||||||||||||||||||||||||||||||||
100.0% - Great-West Lifeco Finance 2018, LLC | ||||||||||||||||||||||||||||||||
100.0% - Great-West Lifeco Finance 2018 II, LLC | ||||||||||||||||||||||||||||||||
99.0% - Great West Lifeco Finance 2018, LP (1.0% owned by 2619747 Ontario Inc.) | ||||||||||||||||||||||||||||||||
100.0% - 6109756 Canada Inc. | ||||||||||||||||||||||||||||||||
100.0% - 6922023 Canada Inc. | ||||||||||||||||||||||||||||||||
100.0% - 8563993 Canada Inc. | ||||||||||||||||||||||||||||||||
100.0% - 9855297 Canada Inc. | ||||||||||||||||||||||||||||||||
100.0% - The Great-West Life Assurance Company (NAIC #80705, MI) | ||||||||||||||||||||||||||||||||
29.4% - GWL THL Private Equity I Inc. (11.8% owned by The Canada Life Assurance Company, 58.8% owned by The Canada Life Insurance Company of Canada) | ||||||||||||||||||||||||||||||||
100.0% - GWL THL Private Equity II Inc. | ||||||||||||||||||||||||||||||||
23.0% - Great-West Investors Holdco Inc. (22% owned by The Canada Life Assurance Company, 55% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
100.0% - Great-West Investors LLC | ||||||||||||||||||||||||||||||||
100.0% - Great-West Investors LP Inc. |
99.0% - Great-West Investors LP (1.0% owned by Great-West Investors GP Inc.) | ||||||||||||||||||||||||||||||||
100.0% - T.H. Lee Interests | ||||||||||||||||||||||||||||||||
100.0% - Great-West Investors GP Inc. | ||||||||||||||||||||||||||||||||
1.0% - Great-West Investors LP (99.0% owned by Great-West Investors LP Inc.) | ||||||||||||||||||||||||||||||||
100.0% - T.H. Lee Interests | ||||||||||||||||||||||||||||||||
100.0% - GWL Realty Advisors Inc. | ||||||||||||||||||||||||||||||||
100.0% - GWL Realty Advisors U.S., Inc. | ||||||||||||||||||||||||||||||||
100.0% - EverWest Property Management, LLC | ||||||||||||||||||||||||||||||||
100.0% - EverWest Property Services of Arizona, LLC | ||||||||||||||||||||||||||||||||
100.0% EverWest Real Estate Investors, LLC | ||||||||||||||||||||||||||||||||
100.0% EverWest Advisors, LLC | ||||||||||||||||||||||||||||||||
100.0% EverWest Advisors AZ, LLC | ||||||||||||||||||||||||||||||||
100.0% EW Manager LLC | ||||||||||||||||||||||||||||||||
100.0% - RA Real Estate Inc. | ||||||||||||||||||||||||||||||||
0.1% - RMA Real Estate LP (69.9% owned by The Great-West Life Assurance Company, 30.0% owned by London Life Insurance Company) | ||||||||||||||||||||||||||||||||
100% - RMA Properties Ltd. | ||||||||||||||||||||||||||||||||
100% - RMA Properties (Riverside) Ltd. | ||||||||||||||||||||||||||||||||
100% - S-8025 Holdings Ltd. | ||||||||||||||||||||||||||||||||
100.0% - Vertica Resident Services Inc. | ||||||||||||||||||||||||||||||||
100.0% - 2278372 Ontario Inc. | ||||||||||||||||||||||||||||||||
12.5% - 555 Robson Holding Ltd. (75% owned by London Life Insurance Company, 12.5% owned by The Canada Life Insurance Company of Canada) | ||||||||||||||||||||||||||||||||
100.0% - GLC Asset Management Group Ltd. | ||||||||||||||||||||||||||||||||
100.0% - 200 Graham Ltd. | ||||||||||||||||||||||||||||||||
100.0% - 801611 Ontario Limited | ||||||||||||||||||||||||||||||||
100.0% - 1213763 Ontario Inc. | ||||||||||||||||||||||||||||||||
99.99% - Riverside II Limited Partnership (0.01% owned by 2024071 Ontario Limited) | ||||||||||||||||||||||||||||||||
70.0% - Kings Cross Shopping Centre Ltd. (30% owned by London Life Insurance Company) | ||||||||||||||||||||||||||||||||
100.0% - 681348 Alberta Ltd. | ||||||||||||||||||||||||||||||||
50.0% - 3352200 Canada Inc. | ||||||||||||||||||||||||||||||||
100.0% - 1420731 Ontario Limited | ||||||||||||||||||||||||||||||||
60.0% - Great-West Lifeco Finance (Delaware) LLC (40.0% owned by Great-West Lifeco Finance (Delaware) LP) | ||||||||||||||||||||||||||||||||
100.0% - 1455250 Ontario Limited | ||||||||||||||||||||||||||||||||
100.0% - CGWLL Inc. | ||||||||||||||||||||||||||||||||
100.0% - 2020917 Alberta Ltd. | ||||||||||||||||||||||||||||||||
55.0% - Great-West Investor Holdco Inc. (23% owned by GWL THL Private Equity I Inc., 22% owned by The Canada Life Assurance Company) | ||||||||||||||||||||||||||||||||
26.0% - 2148902 Alberta Ltd. (53% owned by London Life Insurance Company, 16% owned by The Canada Life Insurance Company of Canada and 5% owned by The Canada Life Assurance Company) | ||||||||||||||||||||||||||||||||
20.0% - 2157113 Alberta Ltd. (40% owned by London Life Insurance Company, 30% owned by The Canada Life Insurance Company of Canada and 10% owned by The Canada Life Assurance Company) | ||||||||||||||||||||||||||||||||
65.0% - The Walmer Road Limited Partnership (35.0% owned by London Life Insurance Company) | ||||||||||||||||||||||||||||||||
50.0% - Laurier House Apartments Limited (50.0% owned by London Life Insurance Company) | ||||||||||||||||||||||||||||||||
50.0% - Marine Promenade Properties Inc. (50.0% owned by London Life Insurance Company) | ||||||||||||||||||||||||||||||||
100.0% - 2024071 Ontario Limited | ||||||||||||||||||||||||||||||||
100.0% - 431687 Ontario Limited | ||||||||||||||||||||||||||||||||
0.01% - Riverside II Limited Partnership (99.99% owned by 1213763 Ontario Inc.) | ||||||||||||||||||||||||||||||||
100.0% - High Park Bayview Inc. |
0.001% - High Park Bayview Limited Partnership | ||||||||||||||||||||||||||||||||
75.0% - High Park Bayview Limited Partnership (25.0% owned by London Life Insurance Company) | ||||||||||||||||||||||||||||||||
5.6% - MAM Holdings Inc. (94.4% owned by The Canada Life Insurance Company of Canada) | ||||||||||||||||||||||||||||||||
100% - Mountain Asset Management LLC | ||||||||||||||||||||||||||||||||
70.0% - TGS North American Real Estate Investment Trust (30% owned by London Life Insurance Company) | ||||||||||||||||||||||||||||||||
100.0% - TGS Trust | ||||||||||||||||||||||||||||||||
70.0% - RMA Realty Holdings Corporation Ltd. (30.0% owned by London Life Insurance Company) | ||||||||||||||||||||||||||||||||
100.0% - 1995709 Alberta Ltd. | ||||||||||||||||||||||||||||||||
100.0% - RMA (U.S.) Realty LLC (Delaware) (special shares held by 1995709 Alberta Ltd. | ||||||||||||||||||||||||||||||||
100.0% - RMA American Realty Corp. | ||||||||||||||||||||||||||||||||
1% - RMA American Realty Limited Partnership ((99% owned by RMA (U.S.) Realty LLC (Delaware)) | ||||||||||||||||||||||||||||||||
99.0% - RMA American Realty Limited Partnership (1% owned by RMA American Realty Corp.) | ||||||||||||||||||||||||||||||||
69.9% - RMA Real Estate LP (30.0% owned by London Life Insurance Company; 0.1% owned by RA Real Estate Inc.) | ||||||||||||||||||||||||||||||||
100.0% - RMA Properties Ltd. | ||||||||||||||||||||||||||||||||
100.0% - S-8025 Holdings Ltd. | ||||||||||||||||||||||||||||||||
100.0% - RMA Properties (Riverside) Ltd. | ||||||||||||||||||||||||||||||||
70.0% - KS Village (Millstream) Inc. (30.0% owned by London Life Insurance Company) | ||||||||||||||||||||||||||||||||
70.0% - 0726861 B.C. Ltd. (30.0% owned by London Life Insurance Company) | ||||||||||||||||||||||||||||||||
70.0% - Trop Beau Developments Limited (30.0% owned by London Life Insurance Company) | ||||||||||||||||||||||||||||||||
70.0% - Kelowna Central Park Properties Ltd. (30.0% owned by London Life Insurance Company) | ||||||||||||||||||||||||||||||||
70.0% - Kelowna Central Park Phase II Properties Ltd. (30.0% owned by London Life Insurance Company) | ||||||||||||||||||||||||||||||||
12.5% - Vaudreuil Shopping Centres Limited (75.0% owned by London Life Insurance Company, 12.5% owned by The Canada Life Insurance Company of Canada) | ||||||||||||||||||||||||||||||||
70.0% - Saskatoon West Shopping Centres Limited (30.0% owned by London Life Insurance Company) | ||||||||||||||||||||||||||||||||
12.5% - 2331777 Ontario Ltd. (75.0% owned by London Life Insurance Company, 12.5% owned by The Canada Life Insurance Company of Canada) | ||||||||||||||||||||||||||||||||
12.5% - 2344701 Ontario Ltd. (75.0% owned by London Life Insurance Company, 12.5% owned by The Canada Life Insurance Company of Canada) | ||||||||||||||||||||||||||||||||
12.5% - 2356720 Ontario Ltd. (75.0% owned by London Life Insurance Company, 12.5% owned by The Canada Life Insurance Company of Canada) | ||||||||||||||||||||||||||||||||
12.5% - 0977221 B.C. Ltd. (75.0% owned by London Life Insurance Company, 12.5% owned by The Canada Life Insurance Company of Canada) | ||||||||||||||||||||||||||||||||
12.5% - 555 Robson Holding Ltd. ((75% owned by London Life Insurance Company, 12.5% owned by The Canada Life Insurance Company of Canada) | ||||||||||||||||||||||||||||||||
100.0% - 7419521 Manitoba Ltd. | ||||||||||||||||||||||||||||||||
0.04% - 7420928 Manitoba Limited Partnership (24.99% owned each by The Great-West Life Assurance Company, London Life Insurance Company, The Canada Life Assurance Company and The Canada Life Insurance Company of Canada) | ||||||||||||||||||||||||||||||||
100.0% - 7419539 Manitoba Ltd. | ||||||||||||||||||||||||||||||||
100.0% - London Insurance Group Inc. | ||||||||||||||||||||||||||||||||
100.0% - Trivest Insurance Network Limited | ||||||||||||||||||||||||||||||||
100.0% - London Life Insurance Company (Fed ID # 52-1548741 – NAIC # 83550, MI) | ||||||||||||||||||||||||||||||||
100.0% - 1542775 Alberta Ltd. | ||||||||||||||||||||||||||||||||
100.0% - 0813212 B.C. Ltd. | ||||||||||||||||||||||||||||||||
30.0% - Kings Cross Shopping Centre Ltd. (70% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
30.0% - 0726861 B.C. Ltd. (70% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
30.0% - TGS North American Real Estate Investment Trust (70% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
100.0% - TGS Trust | ||||||||||||||||||||||||||||||||
30.0% - RMA Realty Holdings Corporation Ltd. (70% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
100.0% - 1995709 Alberta Ltd. | ||||||||||||||||||||||||||||||||
100.0% - RMA (U.S.) Realty LLC (Delaware) (special shares held by 1995709 Alberta Ltd.) | ||||||||||||||||||||||||||||||||
100.0% - RMA American Realty Corp. | ||||||||||||||||||||||||||||||||
1.0% - RMA American Realty Limited Partnership ((99% owned by RMA (U.S.) Realty LLC (Delaware)) | ||||||||||||||||||||||||||||||||
99.0% - RMA American Realty Limited Partnership (1% owned by RMA American Realty Corp.) |
30.0% - RMA Real Estate LP (69.9% owned by The Great-West Life Assurance Company; 0.1% owned by RA Real Estate Inc.) | ||||||||||||||||||||||||||||||||
100.0% - RMA Properties Ltd. | ||||||||||||||||||||||||||||||||
100.0% - S-8025 Holdings Ltd. | ||||||||||||||||||||||||||||||||
100.0% - RMA Properties (Riverside) Ltd. | ||||||||||||||||||||||||||||||||
100.0% - 1319399 Ontario Inc. | ||||||||||||||||||||||||||||||||
24.99% - 7420928 Manitoba Limited Partnership (24.99% limited partner interest each held by The Great-West Life Assurance Company, The Canada Life Assurance Company and The Canada Life Insurance Company of Canada; 7419521 Manitoba Ltd. holds 0.04% interest) | ||||||||||||||||||||||||||||||||
50.0% - Laurier House Apartments Limited (50.0% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
50.0% - Marine Promenade Properties Inc. (50.0% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
30.0% - Kelowna Central Park Properties Ltd. (70.0% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
30.0% - Kelowna Central Park Phase II Properties Ltd. (70.0% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
30.0% - Trop Beau Developments Limited (70.0% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
53.0% - 2148902 Alberta Ltd. (26% owned by the Great-West Life & Annuity Insurance Company, 16% owned by the Canada Life Insurance Company of Canada and 5% owned by the Canada Life Assurance Company) | ||||||||||||||||||||||||||||||||
40.0% - 2157113 Alberta Ltd. (20% owned by the Great-West Life & Annuity Insurance Company, 30% owned by the Canada Life Insurance Company of Canada and 10% owned by the Canada Life Assurance Company) | ||||||||||||||||||||||||||||||||
100.0% - 4298098 Canada Inc. | ||||||||||||||||||||||||||||||||
100.0% - GWLC Holdings Inc. | ||||||||||||||||||||||||||||||||
100% - GLC Reinsurance Corporation | ||||||||||||||||||||||||||||||||
100.0% - 389288 B.C. Ltd. | ||||||||||||||||||||||||||||||||
100.0% - Quadrus Investment Services Ltd. | ||||||||||||||||||||||||||||||||
35.0% - The Walmer Road Limited Partnership (65.0% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
88.0% - Neighborhood Dental Services Ltd. | ||||||||||||||||||||||||||||||||
100.0% - Quadrus Distribution Services Ltd. | ||||||||||||||||||||||||||||||||
100.0% - Toronto College Park Ltd. | ||||||||||||||||||||||||||||||||
25.0% - High Park Bayview Limited Partnership (75.0% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
30.0% - KS Village (Millstream) Inc. (70.0% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
100.0% - London Life Financial Corporation | ||||||||||||||||||||||||||||||||
73.57% - London Reinsurance Group, Inc. (26.43% owned by London Life Insurance Company) | ||||||||||||||||||||||||||||||||
100.0% - London Life and Casualty Reinsurance Corporation | ||||||||||||||||||||||||||||||||
100.0% - Trabaja Reinsurance Company Ltd. | ||||||||||||||||||||||||||||||||
100.0% - London Life and Casualty (Barbados) Corporation | ||||||||||||||||||||||||||||||||
100.0% - LRG (US), Inc. | ||||||||||||||||||||||||||||||||
100.0% - London Life International Reinsurance Corporation | ||||||||||||||||||||||||||||||||
100.0% - London Life Reinsurance Company (Fed ID # 23-2044256 – NAIC # 76694, PA) | ||||||||||||||||||||||||||||||||
75.0% - Vaudreuil Shopping Centres Limited (12.5% owned by The Great-West Life Assurance Company, 12.5% owned by The Canada Life Insurance Company of Canada) | ||||||||||||||||||||||||||||||||
26.43% - London Reinsurance Group Inc. (73.57% owned by London Life Financial Corporation) | ||||||||||||||||||||||||||||||||
30.0% - Saskatoon West Shopping Centres Limited (70.0% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
75.0% - 2331777 Ontario Ltd. (12.5% owned by The Great-West Life Assurance Company, 12.5% owned by The Canada Life Insurance Company of Canada) | ||||||||||||||||||||||||||||||||
75.0% - 2344701 Ontario Ltd. (12.5% owned by The Great-West Life Assurance Company, 12.5% owned by The Canada Life Insurance Company of Canada) | ||||||||||||||||||||||||||||||||
75.0% - 2356720 Ontario Ltd. (12.5% owned by The Great-West Life Assurance Company, 12.5% owned by The Canada Life Insurance Company of Canada) | ||||||||||||||||||||||||||||||||
75.0% - 0977221 B.C. Ltd. (12.5% owned by The Great-West Life Assurance Company, 12.5% owned by The Canada Life Insurance Company of Canada) | ||||||||||||||||||||||||||||||||
100.0% - Financial Horizons Group Inc. | ||||||||||||||||||||||||||||||||
100.0% - Financial Horizons Incorporated | ||||||||||||||||||||||||||||||||
100.0% - 9099-1696 Quebec Inc. |
100.0% - Continuum Financial Centres Inc. | ||||||||||||||||||||||||||||||||
100.0% - Excel Private Wealth Inc. | ||||||||||||||||||||||||||||||||
100.0% - Odyssey Financial Group Inc./Groupe Odyssee Inc. | ||||||||||||||||||||||||||||||||
100.0% - Henderson GP ULC | ||||||||||||||||||||||||||||||||
0.01% - Henderson Structured Settlements LP (99.9% held by Financial Horizons Incorporated) | ||||||||||||||||||||||||||||||||
99.9% - Henderson Structures Settlements LP (0.01% held by Henderson GP ULC) | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Financial Corporation | ||||||||||||||||||||||||||||||||
100.0% - The Canada Life Assurance Company (Fed ID # 38-0397420, NAIC # 80659, MI) | ||||||||||||||||||||||||||||||||
24.99% - 7420928 Manitoba Limited Partnership (24.99% limited partner interest held by The Great-West Life Assurance Company, London Life Insurance Company and the Canada Life Insurance Company of Canada; 7419521 Manitoba Ltd. holds 0.04% interest) | ||||||||||||||||||||||||||||||||
5.0% - 2148902 Alberta Ltd. (53% owned by London Life Insurance Company, 26% by The Great-West Life Assurance Company and 16% by The Canada Life Insurance Company of Canada) | ||||||||||||||||||||||||||||||||
10.0% - 2157113 Alberta Ltd. (40% owned by London Life Insurance Company, 20% by The Great-West Life Assurance Company and 30% by The Canada Life Insurance Company of Canada) | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Capital Corporation, Inc. | ||||||||||||||||||||||||||||||||
100.0% - Canada Life International Holdings Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Annuity Reinsurance (Barbados) Corporation | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Group Holdings Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life International Services Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life International Limited | ||||||||||||||||||||||||||||||||
100.0% - CLI Institutional Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Reinsurance International Ltd. | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Reinsurance Ltd. | ||||||||||||||||||||||||||||||||
100.0% - The Canada Life Group (U.K.) Limited | ||||||||||||||||||||||||||||||||
80.0% - Canada Life International Assurance (Ireland) Designated Activity Company (20.0% owned by CL Abbey Limited) | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Irish Holding Company Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Group Services Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Europe Investment Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Europe Management Services Limited | ||||||||||||||||||||||||||||||||
21.33% - Canada Life Assurance Europe Limited (78.67% owned by Canada Life Europe Investment Limited) | ||||||||||||||||||||||||||||||||
78.67% - Canada Life Assurance Europe Limited (21.33% owned by Canada Life Europe Management Services Limited) | ||||||||||||||||||||||||||||||||
100.0% - London Life and General Reinsurance dac | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Dublin dac | ||||||||||||||||||||||||||||||||
100.0% -CL Abbey Limited | ||||||||||||||||||||||||||||||||
20.0% - Canada Life International Assurance (Ireland) Designated Activity Company (80.0% owned by The Canada Life Group (U.K.) Limited) | ||||||||||||||||||||||||||||||||
100.0% - Irish Life Investment Managers Limited | ||||||||||||||||||||||||||||||||
100.0% - Summit Asset Managers Limited | ||||||||||||||||||||||||||||||||
7.0% - Irish Association of Investment Managers CLG | ||||||||||||||||||||||||||||||||
100.0% - Setanta Asset Management Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Pension Managers & Trustees Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Asset Management Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life European Real Estate Limited | ||||||||||||||||||||||||||||||||
100.0% - Hotel Operations (Walsall) Limited | ||||||||||||||||||||||||||||||||
100.0% - Hotel Operations (Cardiff) Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Trustee Services (U.K.) Limited |
100.0% - CLFIS (U.K.) Limited | ||||||||||||||||||||||||||||||||
100.0% - MGM Advantage Holdings Limited | ||||||||||||||||||||||||||||||||
100.0% - Stonehaven UK Limited | ||||||||||||||||||||||||||||||||
100.0% - MGM Advantage Services Limited | ||||||||||||||||||||||||||||||||
100.0% - MGM Advantage Life Limited | ||||||||||||||||||||||||||||||||
100.0% - MGM Advantage Life Trustee Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Limited | ||||||||||||||||||||||||||||||||
26.0% - ETC Hobley Drive Management Company Limited | ||||||||||||||||||||||||||||||||
100.0% - Synergy Sunrise (Wellington Row) Limited | ||||||||||||||||||||||||||||||||
76.0% - Radial Park Management Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life (U.K.) Limited | ||||||||||||||||||||||||||||||||
100.0% - Albany Life Assurance Company Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Management (U.K.) Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Services (U.K.) Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Fund Managers (U.K.) Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Group Services (U.K.) Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Holdings (U.K.) Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Irish Operations Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Ireland Holdings Limited. | ||||||||||||||||||||||||||||||||
100.0% - Irish Life Group Limited | ||||||||||||||||||||||||||||||||
100.0% - Irish Life Health dac | ||||||||||||||||||||||||||||||||
100.0% - Irish Progressive Services International Ltd | ||||||||||||||||||||||||||||||||
100.0% - Irish Life Group Services Limited | ||||||||||||||||||||||||||||||||
100.0% - Irish Life Financial Services Ltd. | ||||||||||||||||||||||||||||||||
100.0% - Glohealth Financial Services Limited | ||||||||||||||||||||||||||||||||
49.0% - Affinity First Limited (51.0% interest unknown) | ||||||||||||||||||||||||||||||||
100.0% - Vestone Ltd. | ||||||||||||||||||||||||||||||||
100.0% - Cornmarket Group Financial Services Limited | ||||||||||||||||||||||||||||||||
100.0% - Cornmarket Insurance Services Limited | ||||||||||||||||||||||||||||||||
25.0% EIS Financial Services Limited (75.0% interest unknown) | ||||||||||||||||||||||||||||||||
100.0% - Cornmarket Retail Trading Ltd. | ||||||||||||||||||||||||||||||||
100.0% - Penpro Limited | ||||||||||||||||||||||||||||||||
100.0% - Irish Life Associate Holdings Unlimited Company | ||||||||||||||||||||||||||||||||
100.0% - Irish Life Irish Holdings Unlimited Company | ||||||||||||||||||||||||||||||||
75.0% - 1939 ILIV Consulting Limited | ||||||||||||||||||||||||||||||||
100.0% - Invesco Limited | ||||||||||||||||||||||||||||||||
100.0% - Invesco Trustee DAC | ||||||||||||||||||||||||||||||||
100.0% - ILP Pension Trustees DAC | ||||||||||||||||||||||||||||||||
100.0% - Irish Life Assurance plc. | ||||||||||||||||||||||||||||||||
100.0% - Ilona Financial Group, Inc. | ||||||||||||||||||||||||||||||||
100.0% - Irish Life Trustee Services Limited | ||||||||||||||||||||||||||||||||
100.0% - Office Park De Mont-St-Guibert A S.A. | ||||||||||||||||||||||||||||||||
100.0% - Office Park De Mont-St-Guibert B S.A. | ||||||||||||||||||||||||||||||||
100.0% - Office Park De Mont-St-Guibert C S.A. | ||||||||||||||||||||||||||||||||
100.0% - Stephen Court Limited | ||||||||||||||||||||||||||||||||
100.0% - Tredwell Associates Limited | ||||||||||||||||||||||||||||||||
100.0% - (2,3&4) Basement Company Limited |
66.66% - City Gate Park Administration Limited | ||||||||||||||||||||||||||||||||
51.0% - SJRQ Riverside IV Management Company Ltd. | ||||||||||||||||||||||||||||||||
50.0% - Hollins Clough Management Company Ltd. | ||||||||||||||||||||||||||||||||
50.0% - Dakline Company Ltd. | ||||||||||||||||||||||||||||||||
20.0% - Choralli Limited | ||||||||||||||||||||||||||||||||
14.0% - Baggot Court Management Limited | ||||||||||||||||||||||||||||||||
5.5% - Padamul Ltd. | ||||||||||||||||||||||||||||||||
18.2143% - Tour Esplanade (Paris) LP | ||||||||||||||||||||||||||||||||
100.0% - 4073649 Canada, Inc. | ||||||||||||||||||||||||||||||||
100.0% - CL Luxembourg Capital Management S.á.r.l. | ||||||||||||||||||||||||||||||||
100.0% - Canada Life France (U.K.) Limited | ||||||||||||||||||||||||||||||||
100.0% - 8478163 Canada Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Capital Bermuda Limited | ||||||||||||||||||||||||||||||||
100.0% - 9983813 Canada Inc. | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Capital Bermuda III Limited | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Capital Bermuda II Limited | ||||||||||||||||||||||||||||||||
22.0% - Great-West Investors Holdco Inc. (23% owned by GWL THL I Private Equity I Inc., 55% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
100.0% - CL 22 Chapel GP Inc. | ||||||||||||||||||||||||||||||||
0.001% - CL 22 Chapel LP (99.99% owned by The Canada Life Assurance Company) | ||||||||||||||||||||||||||||||||
99.99% - CL 22 Chapel GP (0.001%owned by CL 22 Chapel GP Inc.) | ||||||||||||||||||||||||||||||||
100.0% - The Canada Life Insurance Company of Canada | ||||||||||||||||||||||||||||||||
24.99% - 7420928 Manitoba limited Partnership (24.99% limited partner interest held by The Great-West Life Assurance Company, London Life Insurance Company and The Canada Life Assurance Company; 7419521 Manitoba Ltd. holds 0.04% interest) | ||||||||||||||||||||||||||||||||
100.0% - 6855572 Manitoba Ltd. | ||||||||||||||||||||||||||||||||
94.4% - MAM Holdings Inc. (5.6% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
100.0% - Mountain Asset Management LLC | ||||||||||||||||||||||||||||||||
12.5% - 2331777 Ontario Ltd. (75% owned by London Life Insurance Company, 12.5% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
12.5% - 2344701 Ontario Ltd. (75% owned by London Life Insurance Company, 12.5% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
12.5% - Vaudreuil Shopping Centres Limited (75% owned by London Life Insurance Company, 12.5% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
12.5% - 2356720 Ontario Ltd. (75% owned by London Life Insurance Company, 12.5% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
12.5% - 0977221 B.C. Ltd. (75% owned by London Life Insurance Company, 12.5% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
12.5% - 555 Robson Holding Ltd. (75% owned by London Life Insurance Company, 12.5% owned by The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
58.8% - GWL THL Private Equity I Inc. (11.8% The Canada Life Assurance Company, 29.4% The Great-West Life Assurance Company) | ||||||||||||||||||||||||||||||||
100.0% - GWL THL Private Equity II Inc. | ||||||||||||||||||||||||||||||||
16.0% - 2148902 Alberta Ltd. (53% owned by London Life Insurance Company, 26% by The Great-West Life Assurance Company and 5% by The Canada Life Assurance Company) | ||||||||||||||||||||||||||||||||
30.0% - 2157113 Alberta Ltd (40% owned by London Life Insurance Company, 20% by The Great-West Life Assurance Company and 10% by The Canada Life Assurance Company) | ||||||||||||||||||||||||||||||||
100.0% - Great-West Investors Holdco Inc. | ||||||||||||||||||||||||||||||||
100.0% - Great-West Investors LLC | ||||||||||||||||||||||||||||||||
100.0% - Great-West Investors LP Inc. | ||||||||||||||||||||||||||||||||
99.0% - Great-West Investors LP (1.0% owned by Great-West Investors GP Inc.) | ||||||||||||||||||||||||||||||||
100.0% - T.H. Lee Interests | ||||||||||||||||||||||||||||||||
100.0% - Great-West Investors GP Inc. | ||||||||||||||||||||||||||||||||
1.0% - Great-West Investors LP (99.0% Great-West Investors LP Inc.) | ||||||||||||||||||||||||||||||||
100.0% - T.H. Lee Interests |
100.0% - CL Capital Management (Canada), Inc. | ||||||||||||||||||||||||||||||||
100.0% - 587443 Ontario Inc. | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Mortgage Services Ltd. | ||||||||||||||||||||||||||||||||
11.8% - GWL THL Private Equity I Inc. (29.4% owned by The Great-West Life Assurance Company, 58.8% owned by The Canada Life Insurance Company of Canada) | ||||||||||||||||||||||||||||||||
100.0% - GWL THL Private Equity II Inc. | ||||||||||||||||||||||||||||||||
100.0% - Great-West Investors Holdco Inc. | ||||||||||||||||||||||||||||||||
100.0% - Great-West Investors LLC | ||||||||||||||||||||||||||||||||
100.0% - Great-West Investors LP Inc. | ||||||||||||||||||||||||||||||||
99.0% - Great-West Investors LP (1.0% owned by Great-West Investors GP Inc.) | ||||||||||||||||||||||||||||||||
100% - T.H. Lee Interests | ||||||||||||||||||||||||||||||||
100.0% - Great-West Investors GP Inc. | ||||||||||||||||||||||||||||||||
1.0% - Great-West Investors LP (99.0% Great-West Investors LP Inc.) | ||||||||||||||||||||||||||||||||
100.0% - T.H. Lee Interests | ||||||||||||||||||||||||||||||||
100.0% - Canada Life Capital Trust | ||||||||||||||||||||||||||||||||
100.0% - Great-West US RE Holdings, Inc. | ||||||||||||||||||||||||||||||||
100.0% - CL Burlingame, LLC | ||||||||||||||||||||||||||||||||
10.0% - PGEW Burlingame, LLC | ||||||||||||||||||||||||||||||||
100.0% - EW PG – Airport Owner, LLC |
D. | IGM Financial Inc. Group of Companies (Canadian mutual funds) |
Power Corporation of Canada | |||||||||
100.0% - 171263 Canada Inc. | |||||||||
65.515% - Power Financial Corporation | |||||||||
61.412% - IGM Financial Inc. (direct and indirect 65.246%) | |||||||||
100.0% - Investors Group Inc. | |||||||||
100.0% - Investors Group Financial Services Inc. | |||||||||
100.0% - I.G. International Management Limited | |||||||||
100.0% - I.G. Investment Management (Hong Kong) Limited | |||||||||
100.0% - Investors Group Trust Co. Ltd. | |||||||||
100.0% - I.G. Insurance Services Inc. | |||||||||
100.0% - Investors Syndicate Limited | |||||||||
100.0% - Investors Group Securities Inc. | |||||||||
100.0% - 6460675 Manitoba Ltd. | |||||||||
100.0% - I.G. Investment Management, Ltd. | |||||||||
100.0% - Investors Group Corporate Class Inc. | |||||||||
100.0% - Investors Syndicate Property Corp. | |||||||||
100.0% - 0992480 B.C. Ltd. | |||||||||
100.0% - 1081605 B.C. Ltd. | |||||||||
100.0% - I.G. Investment Corp. | |||||||||
100.0% - 10206903 Canada Inc. | |||||||||
100.0% - Mackenzie Inc. | |||||||||
100.0% - Mackenzie Financial Corporation | |||||||||
100.0% - Mackenzie Investments Charitable Foundation | |||||||||
14.28% - Strategic Charitable Giving Foundation | |||||||||
100.0% - Mackenzie Cundill Investment Management (Bermuda) Ltd. |
100.0% - Mackenzie Financial Capital Corporation | |||||||||
100.0% - Multi-Class Investment Corp. | |||||||||
100.0% - MMLP GP Inc. | |||||||||
100.0% - Mackenzie Investments Corporation | |||||||||
100.0% - Mackenzie U.S. Fund Management Inc. | |||||||||
100.0% - MGELS Fund Management (Canada) Ltd. | |||||||||
13.9% - China Asset Management Co., Ltd. | |||||||||
100.0% - MGELS Fund Management (Cayman) Ltd. | |||||||||
100.0% - MGELS Investments Limited | |||||||||
100.0% - MEMLS Fund Management (Cayman) Ltd. | |||||||||
100.0% - Mackenzie EM Funds Management (Cayman) Ltd. | |||||||||
100.0% - Investment Planning Counsel Inc. | |||||||||
100.0% - IPC Investment Corporation | |||||||||
100.0% - IPC Estate Services Inc. | |||||||||
100.0% - IPC Securities Corporation | |||||||||
100.0% - Counsel Portfolio Services Inc. | |||||||||
100.0% - Counsel Portfolio Corporation | |||||||||
18.5% - Portag3 Ventures LP | |||||||||
26.79% - Springboard LP | |||||||||
53.0% - Springboard LP | |||||||||
83.2% - WealthSimple Financial Corp. | |||||||||
29.3% - Springboard II LP | |||||||||
19.8% - Personal Capital Corporation | |||||||||
33.3% - Portag3 Ventures II Affiliates LP | |||||||||
46.96% - Portag3 ventures II LP |
E. | Pargesa Holding SA Group of Companies (European investments) |
Power Corporation of Canada | ||||||||||||||||
100.0% - 171263 Canada Inc. | ||||||||||||||||
65.515% - Power Financial Corporation | ||||||||||||||||
100.0% - Power Financial Europe B.V. | ||||||||||||||||
50.0% - Parjointco N.V. | ||||||||||||||||
75.4% - Pargesa Holding SA (55.5% capital) | ||||||||||||||||
100.0% - Pargesa Netherlands B.V. | ||||||||||||||||
100.0% - SFPG | ||||||||||||||||
50.83% (taking into account the treasury shares - Groupe Bruxelles Lambert (50.0% in capital) | ||||||||||||||||
Capital | ||||||||||||||||
11.8% - Pernod Ricard (7.5% in capital) | ||||||||||||||||
17.6% - Umicore | ||||||||||||||||
19.8% - Ontex | ||||||||||||||||
0.4% - LTI One SA | ||||||||||||||||
96.5% - FINPAR II SA | ||||||||||||||||
0.1% - Groupe Bruxelles Lambert | ||||||||||||||||
0.1% - Ontex | ||||||||||||||||
90.2% - FINPAR III SA | ||||||||||||||||
0.1% - Groupe Bruxelles Lamber |
0.1% - GEA | ||||||||||||||||
1.2% - Sagerpar SA | ||||||||||||||||
100.0% - Belgian Securities BV | ||||||||||||||||
Capital | ||||||||||||||||
67.5% - Imerys (53.8% in capital) | ||||||||||||||||
100.0% - Brussels Securities SA | ||||||||||||||||
Capital | ||||||||||||||||
99.6% - LTI One SA | ||||||||||||||||
0.1% - Groupe Bruxelles Lambert | ||||||||||||||||
100.0% - LTI Two SA | ||||||||||||||||
0.1% - Groupe Bruxelles Lambert | ||||||||||||||||
0.1% - Umicore | ||||||||||||||||
100.0% - URDAC SA | ||||||||||||||||
0.1% - Groupe Bruxelles Lambert | ||||||||||||||||
100.0% - FINPAR SA | ||||||||||||||||
0.1% - Groupe Bruxelles Lambert | ||||||||||||||||
98.8% - Sagerpar SA | ||||||||||||||||
1.0% - Groupe Bruxelles Lambert | ||||||||||||||||
10.0% - GBL Participations SA | ||||||||||||||||
10.0% - Brussels Advisors SA | ||||||||||||||||
100.0% - GBL O | ||||||||||||||||
90.0% - GBL Participations SA | ||||||||||||||||
90.0% - Brussels Advisors SA | ||||||||||||||||
100.0% - GBL Advisors Limited | ||||||||||||||||
5.4% - FINPAR III SA | ||||||||||||||||
100.0% - GBL Development Limited | ||||||||||||||||
100.0% - GBL Verwaltung SA. | ||||||||||||||||
Capital | ||||||||||||||||
100.0% - GBL Investments Limited | ||||||||||||||||
100.0% - GBL R S.á.r.l. | ||||||||||||||||
100.0% - GBL Energy S.á.r.l. | ||||||||||||||||
Capital | ||||||||||||||||
1.24% - Total (0.6% in capital) | ||||||||||||||||
100.0% - Serena S.á.r.l. | ||||||||||||||||
Capital | ||||||||||||||||
16.6% - SGS | ||||||||||||||||
100.0% - Eliott Capital S.á.r.l. | ||||||||||||||||
Capital | ||||||||||||||||
9.4% - LafargeHolcim | ||||||||||||||||
100.0% - Sienna Capital S.á.r.l | ||||||||||||||||
Capital | ||||||||||||||||
10.8% - Sagard FCPR | ||||||||||||||||
0.3% - Sagard II A FPCI | ||||||||||||||||
75.0% - Sagard II B FPCI | ||||||||||||||||
26.9% - Sagard 3 Millésime 1 FPCI | ||||||||||||||||
29.6% - Kartesia Credit Opportunities III SCA, SICAV-SIF | ||||||||||||||||
17.2% - Kartesia Credit Opportunities IV SCS |
22.2% - Kartesia Management SA | ||||||||||||||||
50.0% - Ergon Capital Partners SA | ||||||||||||||||
42.4% - Ergon Capital Partners II SA | ||||||||||||||||
89.9% - Ergon Capital Partners III SA | ||||||||||||||||
15.1% - Mérieux Participations SAS | ||||||||||||||||
37.7% - Mérieux Participations 2 SAS | ||||||||||||||||
78.4% - PrimeStone Capital Fund ICAV | ||||||||||||||||
1.7% - PrimeStone Capital Special Limited Partner SCSp | ||||||||||||||||
9.8% - BDT Capital Partners Fund II (INT),L.P. | ||||||||||||||||
48.6% - Backed 1 LP | ||||||||||||||||
9.6% - Backed 1 Founder LP | ||||||||||||||||
100.0% - Sienna Capital International Ltd. | ||||||||||||||||
34.9% - KKR Sigma Co-Invest II L.P. | ||||||||||||||||
100.0% - GBL Finance S.á.r.l | ||||||||||||||||
100.0% - Miles Capital S.á.r.l | ||||||||||||||||
Capital | ||||||||||||||||
21.2% - Parques Reunidos | ||||||||||||||||
100.0% - Oliver Capital S.á.r.l | ||||||||||||||||
Capital | ||||||||||||||||
8.4% - GEA | ||||||||||||||||
100.0% - Theo Capital S.á.r.l | ||||||||||||||||
Capital | ||||||||||||||||
7.8% - adidas | ||||||||||||||||
100.0% - Owen Capital S.á.r.l | ||||||||||||||||
3.5% - FINPAR II SA | ||||||||||||||||
4.4% - FINPAR III SA |
F. | Power Corporation (International) Limited Group of Companies (Asian investments) |
Power Corporation of Canada | |||
100.0% - Power Corporation (International) Limited | |||
99.9% - Power Pacific Corporation Limited | |||
0.1% - Power Pacific Equities Limited | |||
99.9% - Power Pacific Equities Limited | |||
100.0% - Power Communications Inc. | |||
0.1% - Power Pacific Corporation Limited | |||
13.9% - China Asset Management Limited | |||
100.0% - Power Pacific Investment Management Inc. | |||
100.0% - Sagard China Absolute Return A Share Fund (Canada) GP Inc. | |||
100.0% - GP interest in Sagard China Absolute Return A Share Fund (Canada) LP | |||
100.0% - Power Pacific Investment Management (Ireland) Limited |
G. | Other PCC Companies |
Power Corporation of Canada | ||||||||
100.0% - 152245 Canada Inc. | ||||||||
100.0% - 3540529 Canada Inc. |
100.0% - Square Victoria Real Estate Inc./ Square Victoria Immobilier Inc. | ||||||||
100.0% - SVRE Management Inc. | ||||||||
70.0% - 7 Saint-Jacques GP Inc. | ||||||||
0.01% 7 Saint-Jacques Limited Partnership | ||||||||
49.99% - 7 Saint-Jacques Limited Partnership | ||||||||
100.0% - 3121011 Canada Inc. | ||||||||
100.0% - 171263 Canada Inc. | ||||||||
100.0% - Victoria Square Ventures Inc. | ||||||||
14.88% - Bellus Health Inc. | ||||||||
25.0% (voting) - 9314-0093 Québec Inc. (formerly Club de Hockey Les Remparts de Québec Inc.) | ||||||||
100.0% - Power Energy Corporation | ||||||||
100.0% - Potentia Renewables Inc. | ||||||||
64.0% - Potentia MN Solar Fund I, LLC | ||||||||
75.0% - Paintearth Wind Project LP | ||||||||
75.0% - Stirling Wind Project LP | ||||||||
75.0% - Wheatland Wind Project LP | ||||||||
100.0% - Emerald Solar Energy, SRL | ||||||||
100.0% - Jenner Wind Limited Partnership | ||||||||
100.0% - Power Renewable Energy Corporation | ||||||||
100.0% - Sequoia Energy Inc. | ||||||||
100.0% - Sequoia Energy US Inc. | ||||||||
100.0% - Potentia Solar Holdings II Limited Partnership | ||||||||
100.0% - Potentia Solar Holdings Limited Partnership | ||||||||
100.0% - Schooltop Solar LP | ||||||||
85.0% - Reliant First Nations LP | ||||||||
100.0% - PSI Solar Finance 1 LP | ||||||||
100.0% MOM Solar LP | ||||||||
100.0% - Potentia Solar 5 LP | ||||||||
100.0% - Potentia Solar 6 LP | ||||||||
100.0% - Potentia Solar 7 LP | ||||||||
100.0% - Potentia Solar 9 LP | ||||||||
100.0% - Potentia Solar 14 LP | ||||||||
100.0% - Power Energy Eagle Creek Inc. | ||||||||
60.0% - Power Energy Eagle Creek LLP | ||||||||
54.8% - Eagle Creek Renewable Energy, LLC | ||||||||
60.51% - Lumenpulse Group Inc. | ||||||||
100.0% - Lumenpulse Finance Corp. | ||||||||
100.0% - Lumenpulse Lighting Corp. | ||||||||
80.0% - Sternberg Lanterns, Inc. | ||||||||
100.0% - Fluxwerx Illumination Inc. | ||||||||
100.0% - Exenia s.r.l. | ||||||||
100.0% - Lumenpulse UK Limited | ||||||||
100.0% - Lumenpulse Alphaled Limited | ||||||||
43.8% - The Lion Electric Company | ||||||||
100.0% - Power Communications Inc. | ||||||||
100.0% - Brazeau River Resources Investments Inc. | ||||||||
100.0% - PCC Industrial (1993) Corporation |
100.0% - Power Corporation International | ||||||||
100.0% - 9808655 Canada Inc. | ||||||||
100.0% - 9958363 Canada Inc. | ||||||||
100.0% - Sagard Holdings Participation US LP | ||||||||
25.0% - Sagard Holdings ULC | ||||||||
100.0% - Sagard Holdings Participation Inc. | ||||||||
100.0% - Sagard Credit Partners GP, Inc. | ||||||||
100.0% - Sagard Credit Partners, LP | ||||||||
100.0% - Sagard Holdings Manager GP Inc. | ||||||||
100.0% - Sagard Holdings Manager LP | ||||||||
100.0% - Sagard Credit Partners (Cayman) GP, Inc. | ||||||||
100.0% - Sagard Credit Partners (Cayman), LP | ||||||||
100.0% - Portag3 ventures II GP Inc. | ||||||||
100.0% - Portage3 Ventures II LP | ||||||||
75.0% - Sagard Holdings ULC | ||||||||
4.0% - 1069759 B.C. Unlimited Liability Company | ||||||||
17.96% - Sagard Credit Partners, LP | ||||||||
100.0% - Sagard Credit Partners Carried Interest GP Inc. | ||||||||
100.0% - Sagard Credit Partners Carried Interest LP | ||||||||
100.0% - Sagard Capital Partners GP, Inc. | ||||||||
100.0% - Sagard Capital Partners, L.P. | ||||||||
22.0% - GP Strategies Corp. | ||||||||
11.9% - Jaguar Health Inc. | ||||||||
96.0% - 1069759 B.C. Unlimited Liability Company | ||||||||
91.6 % - Integrated Fertility Holding, LLC. | ||||||||
50.0% - Peak Achievement Athletics Inc. (42.58% equity) | ||||||||
100.0% - 10094439 Canada Inc. | ||||||||
100.0% - 10094455 Canada Inc. | ||||||||
100.0% - Limited Partnership Interests in Peak Management Participation LP | ||||||||
100.0% - 1167410 B.C. Unlimited Liability Company | ||||||||
100.0% - General Partnership Interests in Peak Management Participation LP | ||||||||
100.0% - Limited Partnership Interests in Peak Holdings LP | ||||||||
100.0% - 1167387 B.C. Unlimited Liability Company | ||||||||
100.0% - General Partnership Interests in Peak Holdings LP | ||||||||
100.0% - Bauer Hockey Ltd. | ||||||||
100.0% - Bauer Innovations Canada Ltd. | ||||||||
100.0% - Bauer Hockey AB | ||||||||
100.0% - Bauer Hockey GmbH | ||||||||
100.0% - Performance Sports Group Hong Kong Ltd. | ||||||||
100.0% - Jacmal BV | ||||||||
100.0% - Bauer CR spol s.r.o. | ||||||||
100.0% - BCE Acquisitions US, Inc. | ||||||||
100.0% - Bauer Innovations US, LLC | ||||||||
100.0% - Easton Diamond Sports, LLC | ||||||||
100.0% - Bauer Hockey LLC | ||||||||
100.0% - Cascade Maverik Lacrosse, LLC | ||||||||
100.0% - Bauer Hockey Retail, LLC |
100.0% - Power Corporation of Canada Inc. | ||||||||
100.0% - 4190297 Canada Inc. | ||||||||
100.0% - Sagard Capital Partners Management Corp. | ||||||||
100.0% - Sagard S.A.S. | ||||||||
100.0% - Marquette Communications (1997) Corporation | ||||||||
100.0% - 4507037 Canada Inc. | ||||||||
100.0% - 4524781 Canada Inc. | ||||||||
100.0% - 4524799 Canada Inc. | ||||||||
100.0% - 4524802 Canada Inc. | ||||||||
100.0% - Squart Victoria Communications Group Inc. | ||||||||
100.0% - Gesca Ltee | ||||||||
100.0% Gestion Gesca Inc. | ||||||||
100.0% - 10206911 Canada Inc. | ||||||||
100.0% - Gesca Numerigue Inc. | ||||||||
100.0% - 10206938 Canada Inc. | ||||||||
100.0% - 9214470 Canada Inc. | ||||||||
100.0% - 10322105 Canada Inc. | ||||||||
100.0% - Square Victoria Digital Properties Inc. | ||||||||
100.0% Les Editions Plus Ltee | ||||||||
100.0% - 10206920 Canada Inc. | ||||||||
50.0% - 1004096 Canada Inc. (“workopolis”) | ||||||||
100.0% - 10322091 Canada Inc. |
H. | Other PFC Companies |
Power Financial Corporation | ||||
100.0% - 4400003 Canada Inc. | ||||
100.0% - 3411893 Canada Inc. | ||||
100.0% - 3439453 Canada Inc. | ||||
100.0% - Power Financial Capital Corporation | ||||
100.0% - 7973594 Canada Inc. | ||||
100.0% - 7973683 Canada Inc. | ||||
100.0% - 7974019 Canada Inc. | ||||
19.65% - Springboard L.P. | ||||
83.2% - WealthSimple Financial Corp. (81.7% equity) | ||||
100.0% - Wealthsimple Inc. | ||||
100.0% - Canadian ShareOwner Investments Inc. | ||||
100.0% - CSA Computing Inc. | ||||
100.0% - Wealthsimple US, Inc. | ||||
100.0% - Wealthsimple Technologies, Inc. | ||||
100.0% - ShareOwner Mutual Fund Dealer Inc. | ||||
99.96% - Wealthsimple Europe S.a.r.l | ||||
100.0% - Wealthsimple UK Ltd. | ||||
100.0% - Wealthsimple Germany GmbH | ||||
100.0% - Wealthsimple Technologies Europe Ltd. | ||||
29.3% - Springboard II LP | ||||
63.4% - Koho Financial Inc. |
100.0% - PFC Ventures Inc. | ||||
100.0% - Portag3 Ventures GP Inc. | ||||
100.0% - 9194649 Canada Inc. | ||||
100.0% - Portag3 Ventures Participation ULC | ||||
62.9% - Portag3 Ventures L.P. | ||||
100.0% - Portag3 International Investments Inc. | ||||
26.79% - Springboard L.P. | ||||
20.0% - 11066498 Canada Inc. | ||||
20.0% - 11066510 Canada Inc. | ||||
9.41% - Collage Inc. | ||||
4.44% - dfuse Platform Inc. (EOS Canada Inc.) | ||||
4.41% - Nesto Inc. | ||||
4.22% - Breathe Life Inc. | ||||
2.59% - Dialogue Technologies Inc. | ||||
12.02% - Springboard II LP | ||||
53.46% - Springboard III, LP | ||||
68.06% - Diagram Ventures, LP | ||||
80.0% - 11066498 Canada Inc. | ||||
80.0% - 11066510 Canada Inc. | ||||
40.78% - Collage Inc. | ||||
22.97% - Nesto Inc. | ||||
24.40% - Dialogue Technologies Inc. | ||||
26.66% - dfuse Platform Inc. (EOS Canada Inc.) | ||||
21.60% - Breathe Life Inc. | ||||
33.33% - Portag3 Ventures II Affiliates L.P. | ||||
46.96% - Portag3 ventures II L.P. | ||||
100.00% - Portag3 Ventures II International Investments Inc. | ||||
46.54% - Springboard III, LP. | ||||
6.57% - Dialogue Technologies Inc. | ||||
50.0% - Diagram Ventures GP Inc. (9629262 Canada Inc.) |
(1) | “Corporation” includes any domestic or foreign entity that is a predecessor of a corporation by reason of a merger or other transaction in which the predecessor’s existence ceased upon consummation of the transaction. |
(2) | “Director” means an individual who is or was a director of a corporation or an individual who, while a director of a corporation, is or was serving at the corporation’s request as a director, an officer, an agent, an associate, an employee, a fiduciary, a manager, a member, a partner, a promoter, or a trustee of, or to hold any similar position with, another domestic or foreign entity or of an employee benefit plan. A director is considered to be serving an employee benefit plan at the corporation’s request if the director’s duties to the corporation also impose duties on, or otherwise involve services by, the director to the plan or to participants in or beneficiaries of the plan. “Director” includes, unless the context requires otherwise, the estate or personal representative of a deceased director. |
(3) | “Expenses” includes counsel fees. |
(4) | “Liability” means the obligation incurred with respect to a proceeding to pay a judgment, settlement, penalty, fine, including an excise tax assessed with respect to an employee benefit plan, or reasonable expenses. |
(5) | “Official capacity” means, when used with respect to a director, the office of director in a corporation and, when used with respect to a person other than a director as contemplated in section 7-109-107, the office in a corporation held by the officer or the employment, fiduciary, or agency relationship undertaken by the employee, fiduciary, or agent on behalf of the corporation. “Official capacity” does not include service for any other domestic or foreign corporation or other person or employee benefit plan. |
(6) | “Party” includes a person who was, is, or is threatened to be made a named defendant or respondent in a proceeding. |
(7) | “Proceeding” means any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative and whether formal or informal. |
(1) | Except as provided in subsection (4) of this section, a corporation may indemnify a person made a party to a proceeding because the person is or was a director against liability incurred in the proceeding if: | ||
(a) | The person’s conduct was in good faith; and |
(b) | The person reasonably believed: | ||
(I) | In the case of conduct in an official capacity with the corporation, that such conduct was in the corporation’s best interests; and | ||
(II) | In all other cases, that such conduct was at least not opposed to the corporation’s best interests; and | ||
(c) | In the case of any criminal proceeding, the person had no reasonable cause to believe the person’s conduct was unlawful. | ||
(2) | A director’s conduct with respect to an employee benefit plan for a purpose the director reasonably believed to be in the interests of the participants in or beneficiaries of the plan is conduct that satisfies the requirement of subparagraph (II) of paragraph (b) of subsection (1) of this section. A director’s conduct with respect to an employee benefit plan for a purpose that the director did not reasonably believe to be in the interests of the participants in or beneficiaries of the plan shall be deemed not to satisfy the requirements of paragraph (a) of subsection (1) of this section. | ||
(3) | The termination of a proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent is not, of itself, determinative that the director did not meet the standard of conduct described in this section. | ||
(4) | A corporation may not indemnify a director under this section: | ||
(a) | In connection with a proceeding by or in the right of the corporation in which the director was adjudged liable to the corporation; or | ||
(b) | In connection with any other proceeding charging that the director derived an improper personal benefit, whether or not involving action in an official capacity, in which proceeding the director was adjudged liable on the basis that the director derived an improper personal benefit. | ||
(5) | Indemnification permitted under this section in connection with a proceeding by or in the right of the corporation is limited to reasonable expenses incurred in connection with the proceeding. |
(1) | A corporation may pay for or reimburse the reasonable expenses incurred by a director who is a party to a proceeding in advance of final disposition of the proceeding if: | |
(a) | The director furnishes to the corporation a written affirmation of the director’s good-faith belief that the director has met the standard of conduct described in section 7-109-102; | |
(b) | The director furnishes to the corporation a written undertaking, executed personally or on the director’s behalf, to repay the advance if it is ultimately determined that the director did not meet the standard of conduct; and | |
(c) | A determination is made that the facts then known to those making the determination would not preclude indemnification under this article. | |
(2) | The undertaking required by paragraph (b) of subsection (1) of this section shall be an unlimited general obligation of the director but need not be secured and may be accepted without reference to financial ability to make repayment. | |
(3) | Determinations and authorizations of payments under this section shall be made in the manner specified in section 7-109-106. |
(1) | Unless otherwise provided in the articles of incorporation, a director who is or was a party to a proceeding may apply for indemnification to the court conducting the proceeding or to another court of competent jurisdiction. On receipt of an application, the court, after giving any notice the court considers necessary, may order indemnification in the following manner: | |
(a) | If it determines that the director is entitled to mandatory indemnification under section 7-109-103, the court shall order indemnification, in which case the court shall also order the corporation to pay the director’s reasonable expenses incurred to obtain court-ordered indemnification. | |
(b) | If it determines that the director is fairly and reasonably entitled to indemnification in view of all the relevant circumstances, whether or not the director met the standard of conduct set forth in section 7-109-102(1) or was adjudged liable in the circumstances described in section 7-109-102(4), the court may order such indemnification as the court deems proper; except that the indemnification with respect to any proceeding in which liability shall have been adjudged in the circumstances described in section 7-109-102(4) is limited to reasonable expenses incurred in connection with the proceeding and reasonable expenses incurred to obtain court-ordered indemnification. |
(1) | A corporation may not indemnify a director under section 7-109-102 unless authorized in the specific case after a determination has been made that indemnification of the director is permissible in the circumstances because the director has met the standard of conduct set forth in section 7-109-102. A corporation shall not advance expenses to a director under section 7-109-104 unless authorized in the specific case after the written affirmation and undertaking required by section 7-109-104(1)(a) and (1)(b) are received and the determination required by section 7-109-104(1)(c) has been made. | |
(2) | The determinations required by subsection (1) of this section shall be made: | |
(a) | By the board of directors by a majority vote of those present at a meeting at which a quorum is present, and only those directors not parties to the proceeding shall be counted in satisfying the quorum; or | |
(b) | If a quorum cannot be obtained, by a majority vote of a committee of the board of directors designated by the board of directors, which committee shall consist of two or more directors not parties to the proceeding; except that directors who are parties to the proceeding may participate in the designation of directors for the committee. | |
(3) | If a quorum cannot be obtained as contemplated in paragraph (a) of subsection (2) of this section, and a committee cannot be established under paragraph (b) of subsection (2) of this section, or, even if a quorum is obtained or a committee is designated, if a majority of the directors constituting such quorum or such committee so directs, the determination required to be made by subsection (1) of this section shall be made: | |
(a) | By independent legal counsel selected by a vote of the board of directors or the committee in the manner specified in paragraph (a) or (b) of subsection (2) of this section or, if a quorum of the full board cannot be obtained and a committee cannot be established, by independent legal counsel selected by a majority vote of the full board of directors; or | |
(b) | By the shareholders. | |
(4) | Authorization of indemnification and advance of expenses shall be made in the same manner as the determination that indemnification or advance of expenses is permissible; except that, if the determination that indemnification or advance of expenses is permissible is made by independent legal counsel, authorization of indemnification and advance of expenses shall be made by the body that selected such counsel. |
(1) | Unless otherwise provided in the articles of incorporation: |
(a) | An officer is entitled to mandatory indemnification under section 7-109-103, and is entitled to apply for court-ordered indemnification under section 7-109-105, in each case to the same extent as a director; | |
(b) | A corporation may indemnify and advance expenses to an officer, employee, fiduciary, or agent of the corporation to the same extent as to a director; and | |
(c) | A corporation may also indemnify and advance expenses to an officer, employee, fiduciary, or agent who is not a director to a greater extent, if not inconsistent with public policy, and if provided for by its bylaws, general or specific action of its board of directors or shareholders, or contract. |
(1) | A provision treating a corporation’s indemnification of, or advance of expenses to, directors that is contained in its articles of incorporation or bylaws, in a resolution of its shareholders or board of directors, or in a contract, except an insurance policy, or otherwise, is valid only to the extent the provision is not inconsistent with sections 7-109-101 to 7-109-108. If the articles of incorporation limit indemnification or advance of expenses, indemnification and advance of expenses are valid only to the extent not inconsistent with the articles of incorporation. |
(2) | Sections 7-109-101 to 7-109-108 do not limit a corporation’s power to pay or reimburse expenses incurred by a director in connection with an appearance as a witness in a proceeding at a time when the director has not been made a named defendant or respondent in the proceeding. |
(a) | “expenses” means reasonable expenses incurred in a proceeding, including expenses of investigation and preparation, expenses in connection with an appearance as a witness, and fees and disbursement of counsel, accountants or other experts; | |
(b) | “liability” means an obligation incurred with respect to a proceeding to pay a judgment, settlement, penalty or fine; | |
(c) | “party” includes a person who was, is, or is threatened to be made a named defendant or respondent in a proceeding; |
(d) | “proceeding” means any threatened, pending or completed action, suit, or proceeding whether civil, criminal, administrative or investigative, and whether formal or informal. |
(a) | the person conducted himself or herself in good faith; and | |
(b) | the person reasonably believed that his or her conduct was in the corporation’s best interests; and | |
(c) | in the case of any criminal proceeding, the person had no reasonable cause to believe that his or her conduct was unlawful; and | |
(d) | if the person is or was an employee of the corporation, the person acted in the ordinary course of the person’s employment with the corporation. |
(a) | the person is or was appointed to serve at the request of the corporation as a director, officer, trustee or employee of the other company or entity in accordance with Indemnification Procedures approved by the Board of Directors of the corporation; and | ||
(b) | with respect to the matter(s) giving rise to the proceeding: | ||
(i) | the person conducted himself or herself in good faith; and | ||
(ii) | the person reasonably believed that his or her conduct was at least not opposed to the corporation’s best interests (in the case of a trustee of one of the corporation’s staff benefits plans, this means that the person’s conduct was for a purpose the person reasonably believed to be in the interests of the plan participants); and | ||
(iii) | in the case of any criminal proceeding, the person had no reasonable cause to believe that his or her conduct was unlawful; and | ||
(iv) | if the person is or was an employee of the other company or entity, the person acted in the ordinary course of the person’s employment with the other company or entity. |
(a) | GWFS Equities, Inc. (“GWFS”) is the distributor of securities of the Registrant. Including the Registrant, GWFS serves as distributor or principal underwriter for Great-West Funds, Inc., an open-end management investment company, Variable Annuity-1 Series Account of Great-West Life & Annuity Insurance Company (“GWL&A”), Variable Annuity-1 Series Account of Great-West Life & Annuity Insurance Company of New York (“GWL&A NY”), Variable Annuity-2 Series Account of GWL&A, Variable Annuity-2 Series Account of GWL&A NY, Variable Annuity-8 Series Account of GWL&A, Variable Annuity-8 Series Account of GWL&ANY, COLI VUL-2 Series Account of GWL&A, COLI VUL-2 Series Account of GWL&A NY, COLI VUL-4 Series Account of GWL&A, FutureFunds Series Account of GWL&A, Maxim Series Account of GWL&A, Prestige Variable Life Account of GWL&A, and Trillium Variable Annuity Account of GWL&A. | |
(b) | Directors and Officers of GWFS: |
Name | Principal Business Address | Positions and Offices with Underwriter |
C.E. Waddell | 8515
East Orchard Road Greenwood Village, CO 80111 |
Chair, President, and Chief Executive Officer |
Name | Principal Business Address | Positions and Offices with Underwriter |
S.E. Jenks | 8515
East Orchard Road Greenwood Village, CO 80111 |
Director and Executive Vice President |
R.H. Linton, Jr. | 8515
East Orchard Road Greenwood Village, CO 80111 |
Director and Executive Vice President |
W.J. McDermott | 8515
East Orchard Road Greenwood Village, CO 80111 |
Senior Vice President |
D.A. Morrison | 8515
East Orchard Road Greenwood Village, CO 80111 |
Senior Vice President |
J.M. Smolen | 8515
East Orchard Road Greenwood Village, CO 80111 |
Senior Vice President |
R.L. Logsdon | 8515
East Orchard Road Greenwood Village, CO 80111 |
Vice President, Counsel, and Secretary |
R.M. Mattie | 8515
East Orchard Road Greenwood Village, CO 80111 |
FIN OP Principal, Principal Financial Officer, Principal Operations Officer, Vice President and Treasurer |
K.I. Schindler | 8515
East Orchard Road Greenwood Village, CO 80111 |
Chief Compliance Officer |
M.J. Kavanagh | 8515
East Orchard Road Greenwood Village, CO 80111 |
Associate Chief Compliance Officer |
T.L. Luiz | 8515
East Orchard Road Greenwood Village, CO 80111 |
Compliance Officer |
B.R. Hudson | 8515
East Orchard Road Greenwood Village, CO 80111 |
Senior Counsel and Assistant Secretary |
(c) | Commissions and other compensation received by Principal Underwriter, directly or indirectly, from the Registrant during Registrant’s last fiscal year: |
Name
of Principal Underwriter |
Net
Underwriting Discounts and Commissions |
Compensation
on Redemption |
Brokerage
Commissions |
Compensation |
GWFS | -0- | -0- | -0- | -0- |
COLI
VUL-2 SERIES ACCOUNT (Registrant) | |
By: | /s/ Edmund F. Murphy III |
Edmund
F. Murphy III President and Chief Executive Officer of Great-West Life & Annuity Insurance Company |
GREAT-WEST
LIFE & ANNUITY INSURANCE COMPANY (Depositor) | |
By: | /s/ Edmund F. Murphy III |
Edmund
F. Murphy III President and Chief Executive Officer |
Signature | Title | Date | |||
/s/ R. Jeffrey Orr | Chairman of the Board | December 26, 2019 | |||
R. Jeffrey Orr* | |||||
/s/ Edmund F. Murphy III | President and Chief Executive Officer | December 26, 2019 | |||
Edmund F. Murphy III | |||||
/s/ Andra S. Bolotin | Executive Vice President & Chief Financial Officer | December 26, 2019 | |||
Andra S. Bolotin | |||||
/s/ John L. Bernbach | Director | December 26, 2019 | |||
John L. Bernbach* | |||||
/s/ Robin Bienfait | Director | December 26, 2019 | |||
Robin Bienfait* | |||||
/s/ Marcel R. Coutu | Director | December 26, 2019 | |||
Marcel R. Coutu* | |||||
/s/ André R. Desmarais | Director | December 26, 2019 | |||
André R. Desmarais* | |||||
/s/ Paul G. Desmarais, Jr. | Director | December 26, 2019 | |||
Paul G. Desmarais, Jr.* | |||||
/s/ Gary A. Doer | Director | December 26, 2019 | |||
Gary A. Doer* | |||||
/s/ Gregory J. Fleming | Director | December 26, 2019 | |||
Gregory J. Fleming* | |||||
/s/ Claude Généreux | Director | December 26, 2019 | |||
Claude Généreux* |
Signature | Title | Date | |||
/s/ Alain Louvel | Director | December 26, 2019 | |||
Alain Louvel* | |||||
/s/ Paula B. Madoff | Director | December 26, 2019 | |||
Paula B. Madoff* | |||||
/s/ Paul A. Mahon | Director | December 26, 2019 | |||
Paul A. Mahon* | |||||
Director | |||||
Donald M. Raymond | |||||
Director | |||||
Robert L. Reynolds | |||||
/s/ T. Timothy Ryan, Jr. | Director | December 26, 2019 | |||
T. Timothy Ryan, Jr.* | |||||
/s/ Jerome J. Selitto | Director | December 26, 2019 | |||
Jerome J. Selitto* | |||||
/s/ Gregory D. Tretiak | Director | December 26, 2019 | |||
Gregory D. Tretiak* | |||||
/s/ Brian E. Walsh | Director | December 26, 2019 | |||
Brian E. Walsh* | |||||
*By: | /s/ Ryan L. Logsdon | *Attorney-in-fact pursuant to Power of Attorney | December 26, 2019 | ||
Ryan
L. Logsdon |
EXECUTION COPY
REINSURANCE AGREEMENT
Between
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
(referred to as the Ceding Company)
and
PROTECTIVE LIFE INSURANCE COMPANY
(referred to as the Reinsurer)
42115819.1
TABLE OF CONTENTS
Page | ||||||
ARTICLE I. DEFINITIONS |
1 | |||||
Section 1.1 |
Definitions |
1 | ||||
ARTICLE II. BASIS OF REINSURANCE AND BUSINESS REINSURED |
17 | |||||
Section 2.1 |
Reinsurance |
17 | ||||
Section 2.2 |
Separate Accounts |
18 | ||||
Section 2.3 |
Existing Reinsurance |
18 | ||||
Section 2.4 |
Non-Guaranteed Elements |
21 | ||||
Section 2.5 |
Reserves and Liabilities Reporting |
22 | ||||
Section 2.6 |
Insurance Contract Changes |
22 | ||||
Section 2.7 |
Liability |
22 | ||||
Section 2.8 |
Stable Value Wrap Agreements |
23 | ||||
Section 2.9 |
Internal Replacements |
23 | ||||
ARTICLE III. TRANSFER OF ASSETS; PAYMENTS; SETTLEMENTS; ADMINISTRATION AND ACCOUNTING |
24 | |||||
Section 3.1 |
Payments by the Ceding Company |
24 | ||||
Section 3.2 |
Payments by the Reinsurer |
26 | ||||
Section 3.3 |
Defenses |
26 | ||||
Section 3.4 |
Guaranty Association Assessments and Premium Taxes |
27 | ||||
Section 3.5 |
Delayed Payments |
27 | ||||
Section 3.6 |
Offset and Recoupment Rights |
27 | ||||
Section 3.7 |
Administration and Accounting |
27 | ||||
Section 3.8 |
Termination of Administrative Services Agreement |
27 | ||||
Section 3.9 |
Certain Reports |
28 | ||||
Section 3.10 |
Books and Records |
29 | ||||
Section 3.11 |
Bank Accounts |
29 | ||||
Section 3.12 |
Novation of Specified BOLI/COLI Policies; Replacement of Group Covered Insurance Policies |
30 | ||||
ARTICLE IV. LICENSES; RESERVE CREDIT; SECURITY |
31 | |||||
Section 4.1 |
Licenses; Reserve Credit |
31 | ||||
Section 4.2 |
Security |
32 | ||||
Section 4.3 |
Trust Account and Settlements |
33 | ||||
Section 4.4 |
Eligible Assets |
33 | ||||
Section 4.5 |
Deposit or Transfer of Trust Assets |
33 | ||||
Section 4.6 |
Modifications Upon Occurrence of a Triggering Event |
33 | ||||
Section 4.7 |
Withdrawals of Assets from the Trust Account |
34 | ||||
Section 4.8 |
Adjustments of Security and Withdrawals |
36 | ||||
ARTICLE V. OVERSIGHTS; COOPERATION; REGULATORY MATTERS |
38 | |||||
Section 5.1 |
Oversights |
38 | ||||
Section 5.2 |
Cooperation |
39 | ||||
Section 5.3 |
Regulatory Matters |
39 |
i
42115819.1
ARTICLE VI. DAC TAX |
39 | |||||
Section 6.1 |
Election |
39 | ||||
Section 6.2 |
Definitions |
39 | ||||
Section 6.3 |
Exchange of Information |
39 | ||||
Section 6.4 |
Effectiveness |
40 | ||||
Section 6.5 |
United States Tax Status Representation |
40 | ||||
Section 6.6 |
Breach of Representation |
40 | ||||
Section 6.7 |
DAC Tax Reimbursement |
40 | ||||
ARTICLE VII. INSOLVENCY |
41 | |||||
Section 7.1 |
Insolvency of the Ceding Company |
41 | ||||
ARTICLE VIII. DURATION; RECAPTURE |
42 | |||||
Section 8.1 |
Duration |
42 | ||||
Section 8.2 |
Survival |
42 | ||||
Section 8.3 |
Recapture; Termination |
42 | ||||
Section 8.4 |
Recapture Payments |
43 | ||||
ARTICLE IX. INDEMNIFICATION; DISCLAIMER |
43 | |||||
Section 9.1 |
Reinsurers Obligation to Indemnify |
43 | ||||
Section 9.2 |
Ceding Companys Obligation to Indemnify |
43 | ||||
Section 9.3 |
Notice of Claim; Defense |
44 | ||||
Section 9.4 |
No Duplication; Exclusive Remedy |
45 | ||||
Section 9.5 |
Mitigation |
45 | ||||
Section 9.6 |
Recovery by Indemnified Party |
45 | ||||
Section 9.7 |
Waiver of Duty of Utmost Good Faith |
46 | ||||
ARTICLE X. MISCELLANEOUS |
46 | |||||
Section 10.1 |
Notices |
46 | ||||
Section 10.2 |
Entire Agreement; Amendments |
47 | ||||
Section 10.3 |
Governing Law and Jurisdiction |
47 | ||||
Section 10.4 |
No Third Party Beneficiaries |
48 | ||||
Section 10.5 |
Expenses |
48 | ||||
Section 10.6 |
Counterparts |
48 | ||||
Section 10.7 |
Severability |
48 | ||||
Section 10.8 |
Waiver of Jury Trial; Multiplied and Punitive Damages |
48 | ||||
Section 10.9 |
Treatment of Confidential Information |
49 | ||||
Section 10.10 |
Assignment |
49 | ||||
Section 10.11 |
Waivers |
49 | ||||
Section 10.12 |
Specific Performance |
50 | ||||
Section 10.13 |
Interpretation |
50 |
ii
42115819.1
Schedules
SCHEDULE 1.1(A) |
Covered Insurance Policies | |
SCHEDULE 1.1(B) |
Investment Guidelines | |
SCHEDULE 1.1(C) |
Non-Guaranteed Elements Policy | |
SCHEDULE 1.1(D) |
Recapture Triggering Event | |
SCHEDULE 1.1(E) |
Separate Accounts | |
SCHEDULE 1.1(F) |
Specified BOLI/COLI Policies | |
SCHEDULE 1.1(G) |
Triggering Event | |
SCHEDULE 1.1(H) |
Unamortized Ceding Commission | |
SCHEDULE 3.12 |
Permitted Practice |
Exhibits
Exhibit A |
Trust Agreement | |
Exhibit B |
Accounting Report | |
Exhibit C |
Terminal Settlement | |
Exhibit D |
Calculation of Allowances |
iii
REINSURANCE AGREEMENT
THIS REINSURANCE AGREEMENT (the Agreement), is made and entered into on June 3, 2019 and effective as of the Effective Time by and between Great-West Life & Annuity Insurance Company, a Colorado-domiciled life insurance company (the Ceding Company), and Protective Life Insurance Company, a Tennessee-domiciled life insurance company (the Reinsurer). For purposes of this Agreement, the Ceding Company and the Reinsurer shall each be deemed a Party.
WHEREAS, the Ceding Company, Great-West Life & Annuity Insurance Company of New York, a New York insurance company, The Great-West Life Assurance Company, a Canadian insurance company operating in the United States through a Michigan branch, and The Canada Life Assurance Company, a Canadian insurance company operating in the United States through a Michigan branch (collectively, the Sellers), have agreed to sell, and the Reinsurer and its Affiliates (as hereinafter defined) have agreed to purchase, the Business and certain assets pursuant to a Master Transaction Agreement, dated as of January 23, 2019, by and among the Reinsurer and the Sellers (as may be amended from time to time, the Master Transaction Agreement);
WHEREAS, as contemplated by the Master Transaction Agreement, the Ceding Company wishes to cede to the Reinsurer, and the Reinsurer wishes to reinsure, on a one-hundred percent (100%) indemnity reinsurance basis net of Reinsurance Recoveries (as hereinafter defined), on the terms and conditions set forth herein, the risks arising in respect of the Covered Insurance Policies (as hereinafter defined); and
WHEREAS, simultaneously with their entry into this Agreement on the date hereof, the Ceding Company and the Reinsurer are entering into, among other agreements, (i) the Administrative Services Agreement, pursuant to which the Reinsurer, in its capacity as Administrator, shall provide, or cause the provision of, certain administrative services on behalf of the Ceding Company with respect to the Covered Insurance Policies; (ii) the Trust Agreement, pursuant to which a trustee shall hold assets for the satisfaction of the obligations of the Reinsurer to the Ceding Company under this Agreement; and (iii) the Transition Services Agreement, pursuant to which the Ceding Company and/or one or more of its Affiliates shall provide or cause the provision of certain transitional services to the Reinsurer and its Affiliates with respect to the Business (as hereinafter defined);
NOW, THEREFORE, in consideration of the mutual and several promises and undertakings herein contained, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Ceding Company and the Reinsurer agree as follows:
ARTICLE I.
DEFINITIONS
Section 1.1 Definitions. Any capitalized term used but not defined herein shall have the meaning set forth in the Master Transaction Agreement. The following terms have the respective meanings set forth below throughout this Agreement:
1
42115819.1
Accounting Firm has the meaning set forth in the Master Transaction Agreement.
Accounting Period means each calendar quarter during the term of this Agreement; provided, that the first Accounting Period shall begin on the Effective Time and end on the last day of the quarter in which the Effective Time occurs, and the last Accounting Period shall end on the Recapture Date, the Termination Date or the date this Agreement is otherwise terminated in accordance with Section 8.1, as applicable.
Accounting Report has the meaning set forth in Section 3.8(e).
Action has the meaning set forth in the Master Transaction Agreement.
Administered-Only Policy has the meaning set forth in the Master Transaction Agreement.
Administrative Services Agreement means the Administrative Services Agreement effective as of the Effective Time between the Ceding Company and Reinsurer, in its capacity as Administrator, governing the administration of the Covered Insurance Policies.
Administrator has the meaning set forth in the Administrative Services Agreement.
AER Agreements has the meaning set forth in the Master Transaction Agreement.
Affiliate has the meaning set forth in the Master Transaction Agreement.
Aggregate Ceding Commission has the meaning set forth in the Master Transaction Agreement.
Agreement has the meaning set forth in the preamble.
Allowances means, for any Accounting Period (a) where the Administrative Services Agreement is inforce, zero and (b) where the Administrative Services Agreement has been terminated, the amount calculated for such Accounting Period on Exhibit D.
Ancillary Agreements has the meaning set forth in the Master Transaction Agreement.
Applicable Law has the meaning set forth in the Master Transaction Agreement.
Bank Accounts means accounts in the name of the Ceding Company with banking institutions with respect to the Covered Insurance Policies maintained by the Reinsurer.
Business has the meaning set forth in the Master Transaction Agreement.
Business Day has the meaning set forth in the Master Transaction Agreement.
Buyer Product Tax Non-Compliance means any Buyer Product Tax Non-Compliance (as defined in the Master Transaction Agreement) by the Reinsurer with respect to the Covered Insurance Policies that are the subject of this Agreement.
2
42115819.1
Ceding Company has the meaning set forth in the preamble.
Ceding Company Domiciliary State means the State of Colorado or, if the Ceding Company changes its state of domicile to another state in the United States, such other state; provided if the Ceding Company changes its state of domicile to the State of New York, the Ceding Company Domiciliary State shall continue to be the State of Colorado for all purposes under this Agreement.
Ceding Company Extra-Contractual Obligations means (i) all Extra-Contractual Obligations to the extent arising out of, resulting from or related to any act, error or omission before the Effective Time, whether or not intentional, negligent, in bad faith or otherwise, by the Ceding Company or any of its Affiliates, or any service providers or Distributors engaged or compensated by the Ceding Company or any of its Affiliates or otherwise; (ii) all Extra-Contractual Obligations to the extent arising out of, resulting from or related to any act or omission after the Closing Date by the Ceding Company or any of its Affiliates, unless such act or omission was undertaken (a) pursuant to the Transition Services Agreement (in which case the indemnification provisions thereof shall apply in accordance with their terms), (b) at the written direction or request of or with the written consent of the Reinsurer or any of its Affiliates or (c) in order to comply with Applicable Law, in either case of the foregoing subclauses (b) or (c), any resulting Extra-Contractual Obligations shall be Reinsurer Extra-Contractual Obligations; (iii) all DMF Liabilities with respect to the Covered Insurance Policies; (iv) all Extra-Contractual Obligations to the extent arising out of or resulting from any Product Tax Non-Compliance; and (v) all Extra-Contractual Obligations to the extent arising out of or resulting from changes to Non-Guaranteed Elements effected by the Ceding Company on or after the Effective Time that are inconsistent with any recommendation of the Reinsurer made in accordance with the NGE Standards pursuant to Section 2.4. For the avoidance of doubt, all Extra Contractual Obligations to the extent arising out of any act or omission of the Ceding Company or any of its Affiliates prior to the Effective Time regarding any Covered Insurance Policy novated to the Reinsurer or replaced by an insurance policy issued by the Reinsurer pursuant to Section 3.12 shall remain as Ceding Company Extra-Contractual Obligations.
Ceding Company Indemnified Parties has the meaning set forth in Section 9.1.
Claim Notice has the meaning set forth in Section 9.3(a).
Closing Date shall have the meaning set forth in the Master Transaction Agreement.
Closing Date Statement has the meaning set forth in the Master Transaction Agreement.
Closing Statement of General Account Net Settlement has the meaning set forth in the Master Transaction Agreement.
Code shall have the meaning set forth in the Master Transaction Agreement.
Collateral has the meaning set forth in Section 3.1(d).
3
42115819.1
Commercial Mortgage Loans means whole commercial loans meeting the requirements set forth in Section 4.4 which, for the avoidance of doubt, shall not include any participation interest.
Company Action Level RBC means, at any date of determination, two hundred percent (200%) of the authorized control level risk-based capital of the Reinsurer (i) determined in accordance with the Applicable Law of the state of domicile of the Reinsurer and (ii) calculated using SAP applicable to the Reinsurer and the risk-based capital factors and formulae prescribed by the insurance regulatory authority in the Reinsurers state of domicile with respect to the components of and methodologies contained in such calculation.
Compensation has the meaning set forth in the Master Transaction Agreement.
Confidential Information means all documents and information concerning one Party, any of its Affiliates, any Distributor, any mutual fund organization that has its mutual funds offered as funding vehicles for one or more Separate Accounts, the Business or the Covered Insurance Policies, including any information relating to any Person insured directly or indirectly under the Covered Insurance Policies, furnished to the other Party or such other Partys Affiliates or Representatives in connection with this Agreement or the transactions contemplated hereunder, except that Confidential Information does not include information which: (a) at the time of disclosure or thereafter is generally available to and known by the public other than by way of a disclosure by the receiving Party hereunder or by any Representative or Affiliate of such Party hereto; (b) was in the possession of, or becomes available to, the receiving Party or such Partys Representatives or Affiliates on a non-confidential basis, directly or indirectly, from a source other than the disclosing Party or its Representatives, provided, that such source is not and was not known to the receiving Party or its Representatives or Affiliates to be prohibited from transmitting the information by a contractual, legal, fiduciary, or other obligation of confidentiality by the disclosing Party; or (c) was independently developed without violating any obligations under this Agreement and without the use of any other Confidential Information or any derivative thereof.
Contracts has the meaning set forth in the Master Transaction Agreement.
Counterparties has the meaning set forth in the Investment Management Agreement.
Covered Insurance Policies means
(i) | all Policies issued, assumed or renewed by the Ceding Company that are specified on Schedule 1.1(A), as such schedule may be amended pursuant to Section 8.16 of the Master Transaction Agreement, excluding any such Policies issued in, or for delivery in, the State of New York (other than individual certificates of insurance delivered under Group Covered Insurance Policies where such Policies are issued outside, or for delivery outside, the State of New York and the delivery of such certificate in the State of New York did not violate Applicable law), but including (a) all endorsements, riders, supplementary Contracts of insurance, side letters, related agreements (including the AER Agreements), incorporated agreements (such as offering documents), in each case under this subclause (a) that are included in the policy files provided to the Reinsurer with respect to such included Policies, |
4
42115819.1
together with all settlement options and (b) conversions, exchanges, replacements or reissuances related thereto that are effected pursuant to the terms of such included Policies or as required by Applicable Law or by the Reinsurer pursuant to the terms of the Administrative Services Agreement or by the Ceding Company following any termination of the Administrative Services Agreement, in each case, whether issued, assumed or renewed by the Ceding Company on or prior to the Effective Time (including those that have lapsed and terminated with unpaid claims); and |
(ii) | the New Insurance Policies; |
provided, that Covered Insurance Policies shall not include any Administered-Only Policy or Excluded Policy.
DAC Tax Reimbursement has the meaning set forth in Section 6.7.
Derivative Portfolio has the meaning set forth in the Investment Management Agreement.
Discovered Policy has the meaning set forth in the Master Transaction Agreement.
Distributor has the meaning set forth in the Master Transaction Agreement.
DMF Liabilities has the meaning set forth in the Master Transaction Agreement.
Domiciliary Receiver has the meaning set forth in Section 7.1(c).
Effective Time has the meaning set forth in the Master Transaction Agreement.
Eligible Assets has the meaning set forth in Section 4.4.
Estimated Statement of General Account Net Settlement has the meaning set forth in the Master Transaction Agreement.
Excluded Liabilities shall mean (a) all Ceding Company Extra-Contractual Obligations, and (b) Liabilities to the extent resulting from any change made after the Effective Time to the terms of a Covered Insurance Policy unless such change was made in compliance with Section 2.6 and (c) any ex-gratia payments made by the Ceding Company (other than ex-gratia payments made by or at the direction or request of or with the written consent of the Administrator).
Excluded Policy has the meaning set forth in the Master Transaction Agreement.
Existing IMR Amount means the amount of the Ceding Companys existing interest maintenance reserve, calculated on an after-tax basis, that is attributable to the Reinsured Liabilities as of the Effective Time determined in accordance with SAP applicable to the Ceding Company.
5
42115819.1
Existing Reinsurance Agreements means (a) all reinsurance agreements under which the Ceding Company has ceded or retroceded to reinsurers (whether or not affiliated with the Ceding Company) risks arising in respect of the Covered Insurance Policies (and only to the extent such agreements cover the Covered Insurance Policies) and the Ceding Companys interest in any trust or other agreement or instrument providing security for the Ceding Company with respect to such reinsurers reinsurance obligations under such reinsurance agreement where such agreements are (i) in force or are being treated as being in force as of the date hereof or (ii) terminated but under which there remains any outstanding Liability of the reinsurer and (b) any reinsurance agreement, trust or other agreement or instrument providing security for such reinsurance obligations entered into by the Ceding Company with the prior written consent of the Reinsurer to replace any of such reinsurance agreements or security arrangements following any termination or recapture thereof, in each case, as all such reinsurance agreements or security arrangements may be in force and effect from time to time and at any time.
Existing Reinsurance Premium has the meaning set forth in Section 2.3(a).
Existing Reinsurers means the insurance companies to which the Ceding Company has ceded or retroceded any Liabilities under Covered Insurance Policies pursuant to any Existing Reinsurance Agreement.
Extra-Contractual Obligations means all Liabilities to any Person arising out of or resulting from the Covered Insurance Policies (other than Liabilities arising under the express terms and conditions and within the policy limits of the Covered Insurance Policies), including, without limitation, any loss in excess of the limits arising under or covered by any Covered Insurance Policy, any Liability for fines, penalties, Taxes (except as specifically provided herein), fees, forfeitures, compensatory, consequential, punitive, exemplary, special, treble, bad faith, tort, statutory or any other form of extra-contractual damages, as well as all legal fees and expenses relating thereto, including the costs of any settlement or arbitration award, which Liabilities arise out of or result from any act, error or omission, whether or not intentional, negligent, fraudulent, in bad faith or otherwise (actual or alleged), arising out of or resulting from the Covered Insurance Policies, including, without limitation, (i) the form, sale, marketing, distribution, underwriting, production, issuance, cancellation or administration of the Covered Insurance Policies, (ii) the investigation, defense, prosecution, trial, settlement (including the failure to settle) or handling of claims, benefits, or payments under the Covered Insurance Policies, (iii) the failure to pay or the delay in payment or errors in calculating or administering the payment of benefits, claims or any other amounts due or alleged to be due under or in connection with the Covered Insurance Policies or (iv) with respect to the Reinsurer, Buyer Product Tax Non-Compliance, or with respect to the Ceding Company, Product Tax Non-Compliance.
Fair Market Value has the meaning set forth in the Trust Agreement.
Follow-On Request has the meaning set forth in Section 3.12(a).
General Account Liabilities means the following Liabilities (net of (i) Reinsurance Recoveries (other than under any Specified Reinsurance Agreement, if any) and (ii) amounts owed from a Specified Reinsurer (if any) under a Specified Reinsurance Agreement (if any) with respect
6
42115819.1
to the Covered Insurance Policies, whether or not collected), arising out of or resulting from the Covered Insurance Policies, whether incurred before at or after the Effective Time:
(a) all Liabilities for incurred but not reported claims, pending claims and benefits (including death benefits, waiver of premium benefits, accident and health benefits, endowments or matured endowments, paid-up additions, lump sum payments, annuitization payments, deferred payments, discontinuance disbursements, payments in respect of market value adjustments, rights to purchase additional coverage and any other settlement options), unearned premiums, claim expenses, interest on claims or unearned premiums, interest on policy funds, experience refunds, amounts in respect of profit sharing, withdrawals, surrenders, amounts payable for returns or refunds of premiums, guaranteed minimum death benefits and loans made under the terms of any Covered Insurance Policy and other contract benefits, in each case, whether incurred before, at or after the Effective Time, and arising under the express terms and conditions of the Covered Insurance Policies;
(b) all Liabilities arising out of or relating to any changes to the terms and conditions of the Covered Insurance Policies mandated by Applicable Law or initiated by the holder of any Covered Insurance Policy pursuant to the terms of such policy;
(c) Premium Taxes; provided, that the amount of any Premium Taxes shall be determined net of any credits, deductions or offsets to Premium Taxes paid or accrued after the Closing Date that are otherwise available to the Ceding Company with regard to the Reinsured Liabilities;
(d) Compensation (including fronted and Trail Commissions and marketing allowances), servicing and administration fees and other amounts payable with respect to the Covered Insurance Policies to or for the benefit of the Distributors who marketed or produced the Covered Insurance Policies;
(e) amounts payable under or with respect to the Existing Reinsurance Agreements (including Existing Reinsurance Premium) (including for the avoidance of doubt, such amounts payable to the Specified Reinsurers (if any) under the Specified Reinsurance Agreements (if any), which amounts shall be payable to the Ceding Company);
(f) all Liabilities which relate to (i) amounts held in the general account that are payable to the Separate Account or are otherwise pending transfer to the Separate Accounts, (ii) Covered Insurance Policies that contemplate payment from a Separate Account, the amount of which exceeds the assets of such Separate Account (without duplication of amounts set forth in clause (a) above) or (iii) one or more Separate Accounts that are not payable out of the assets of the Separate Accounts, including any loss to a fund or product resulting from pricing errors, expense calculation errors or missing fund activity;
(g) all escheat or unclaimed property Liabilities arising out of the Covered Insurance Policies (without duplication of amounts set forth in clause (a) above) (but excluding any DMF Liabilities and Pre-Closing UCP Liabilities);
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(h) without duplication of the foregoing, any other Liability arising out of or resulting from the Covered Insurance Policies not specified in items (a)-(g) above;
(i) all Reinsurer Extra-Contractual Obligations; and
(j) all ILVA Guarantee Amounts;
provided, that (i) the General Account Liabilities do not include any Separate Account Liabilities or Excluded Liabilities; (ii) with respect to items (c) and (d) above, General Account Liabilities comprising such items shall be limited to (A) amounts payable with respect to Premium received from and after the Effective Time and (B), as regards amounts payable in respect of Premiums received prior to the Effective Time, (1) the respective dollar amounts of the reserve or accrual that has been established and reported in the applicable specific line item on the Closing Statement of General Account Net Settlement applicable to the Ceding Company (after any disputes with respect thereto have been finally resolved in accordance with the Master Transaction Agreement) with respect to amounts payable prior to the Effective Time and (2) Trail Commissions with respect to amounts payable after the Effective Time; and (iii) with respect to item (h) above to the extent not otherwise covered by the foregoing clauses (i) and (ii) of this proviso, General Account Liabilities comprising such item be limited to the respective dollar amounts of the reserve or accrual that has been established and reported in the applicable specific line item on the Closing Statement of General Account Net Settlement applicable to the Ceding Company (after any disputes with respect thereto have been finally resolved in accordance with the Master Transaction Agreement).
General Account Reserves means, as of any date of determination, the aggregate amount of general account reserves of the Ceding Company (without regard to the reinsurance provided under this Agreement) with respect to the General Account Liabilities, as calculated as of such date of determination in accordance with SAP applicable to the Ceding Company and the Reinsurance Statement Methodology applied consistently with their application in connection with the preparation of the applicable Closing Date Statement (but taking into account any change to statutory reserves ceded under the Existing Reinsurance Agreements and any changes to SAP applicable to the Ceding Company required to be implemented by the Ceding Company after the Effective Time); provided, that the General Account Reserves shall not include the Separate Account Reserves.
Governmental Body has the meaning set forth in the Master Transaction Agreement.
Group Covered Insurance Policies means the Covered Insurance Policies issued by the Ceding Company to the American Dental Association and to Great-West Trust Company, LLC, Trustee of Steelcase Profit-Sharing Plan.
Holdback Amount has the meaning set forth in the Master Transaction Agreement.
ILVA Guarantee Amounts means any amounts payable by the Ceding Company to Counterparties with respect to the Derivative Portfolio under guarantees issued by the Ceding Company to such Counterparties to the extent that such payments represent amounts due under the applicable ISDA Documentation.
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IMR Amount means (i) the Existing IMR Amount plus (ii) the Transaction IMR Amount.
Indemnified Party has the meaning set forth in Section 9.3(a).
Indemnifying Party has the meaning set forth in Section 9.3(a).
Initial Reinsurance Premium has the meaning set forth in the Master Transaction Agreement.
Insolvency has the meaning set forth in Section 3.6.
Investment Guidelines means the investment guidelines set forth in Schedule 1.1(B), which shall apply in the aggregate to the assets held in the Trust Account (including Commercial Mortgage Loans) and to the assets held in the trust accounts established pursuant to the Seller Reinsurance Agreements (including commercial mortgage loans).
Investment Management Agreement has the meaning set forth in the Master Transaction Agreement.
Investment Product Agreement has the meaning set forth in the Administrative Services Agreement.
ISDA Documentation has the meaning set forth in the Investment Management Agreement.
Liabilities has the meaning set forth in the Master Transaction Agreement.
Losses has the meaning set forth in the Master Transaction Agreement.
Master Transaction Agreement has the meaning set forth in the recitals.
Monthly Reimbursement Amount means, with respect to any calendar month, the amount of claims and benefit amounts that constitute General Account Liabilities paid by the Reinsurer during such month, net of Premiums collected by the Reinsurer during such month, whether in its capacity as Administrator or otherwise in its capacity as an agent of the Ceding Company with respect to such payments and collections.
NAIC means the National Association of Insurance Commissioners or any successor organization.
New Insurance Policies means the binders, endorsements, riders, policies, certificates, annuity contracts, contracts of insurance, and supplementary contracts of insurance (including settlement options) issued, renewed, or assumed pursuant to the terms of such Policies or as required by Applicable Law or by the Reinsurer on behalf of the Ceding Company following the Effective Time in accordance with the Administrative Services Agreement.
NGE Standards has the meaning set forth in Section 2.4(a).
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Non-Guaranteed Elements means cost of insurance charges, rider charges, credited interest rates, mortality and expense charges, administrative expense risk charges, variable premium rates, variable paid-up amounts, policy loads and any other policy features or terms that are subject to change, and those items set forth in Actuarial Standard of Practice No. 2: Nonguaranteed Charges or Benefits for Life Insurance Policies and Annuity Contracts in effect as of the Effective Time and any successor rules for such Non-Guaranteed Elements as in effect from time to time.
Non-Guaranteed Elements Policy means the policy of the Ceding Company with respect to Non-Guaranteed Elements relating to the Covered Insurance Policies as in effect as of the Effective Time, a copy of which is attached hereto as Schedule 1.1(C), and as from time to time amended, modified or supplemented in accordance with Section 2.4(b).
Novation Request has the meaning set forth in Section 3.12(a).
Party has the meaning set forth in the preamble.
Payee has the meaning set forth in Section 7.1(a).
Person has the meaning set forth in the Master Transaction Agreement.
Policy has the meaning set forth in the Master Transaction Agreement.
Policy Loan Balance means, with respect to any date of determination, the amount of contract loans in respect of the Covered Insurance Policies, as of such date, as would be reflected in line 6, column 3 in the Assets section of the NAIC statement blank used to prepare the Ceding Companys balance sheet in its most recent Statutory Financial Statement or if the line number is changed pursuant to relevant guidance from the NAIC, the successor line number to such line number, net of any unearned policy loan interest on such loans but including any due and accrued interest thereon, determined in accordance with SAP.
Pre-Closing UCP Liabilities has the meaning set forth in the Master Transaction Agreement.
Premiums means premiums, considerations, deposits, loan repayments and similar amounts collected by or on behalf of the Ceding Company in respect of the Covered Insurance Policies (whether issued or renewed by the Ceding Company).
Premium Taxes means any Taxes payable with respect to Premiums received in respect of the Covered Insurance Policies, including assessments or similar charges to the extent attributable to Premiums received or accrued in connection with participation by the Ceding Company or the Reinsurer, whether voluntary or involuntary, in any guaranty association established or governed by any Governmental Body.
Product Tax Non-Compliance means any Product Tax Non-Compliance (as defined in the Master Transaction Agreement) by the Ceding Company with respect to the Covered Insurance Policies that are the subject of this Agreement.
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Program of Internal Replacement has the meaning set forth in Section 2.9.
Qualifying LOC means one or more clean, irrevocable, unconditional letters of credit that comply with the requirements of the Colorado Insurance Code 10-3-703 (and its successor provision) or the applicable corresponding credit for reinsurance laws and regulations of the Ceding Company Domiciliary State and are delivered to and held by the Trustee; provided, that as of any date of determination following the occurrence and during the continuation of a Triggering Event, the aggregate available amount under all such Qualifying LOCs may not exceed the lesser of (i) thirty percent (30%) of the Required Balance as of such date, and (ii) the excess of (A) the Required Balance as of such date over (B) the Statutory Book Value of the Eligible Assets in the Trust Account.
Qualifying Post-Closing Sales Adjustment Amount has the meaning set forth in the Master Transaction Agreement.
RBC Ratio means the percentage equal to (i) the quotient of the Total Adjusted Capital of the Reinsurer divided by the Company Action Level RBC, multiplied by (ii) 100; provided, that in the event of an elimination by Applicable Law of the requirement for the Reinsurer to calculate risk-based capital or there is a material change in the factors and formulae prescribed by the insurance regulatory authority in the Reinsurers state of domicile with respect to the components of and methodologies contained in such calculation, the Parties shall amend this Agreement to incorporate an alternate calculation that is reasonably equivalent to the components of and methodologies contained in the calculation of the Reinsurers RBC Ratio in effect as of the Effective Time within thirty (30) calendar days after the implementation of such change and, if the Parties cannot agree on any such alternative, the Reinsurer shall continue to calculate its RBC Ratio as if such material change had not occurred.
RBC Reporting Deadline means, as of any date, the date that is sixty (60) calendar days after the end of any calendar quarter.
Recapture Date has the meaning set forth in Section 8.3(a).
Recapture Triggering Event means any of the following occurrences:
(a) the Reinsurer becomes insolvent or has been placed into liquidation, rehabilitation, conservation, supervision, receivership or similar proceedings (whether voluntary or involuntary), or there has been instituted against it proceedings for the appointment of a receiver, liquidator, rehabilitator, conservator, or trustee in bankruptcy, or other agent known by whatever name, to take possession of its assets or assume control of its operations;
(b) the occurrence of the event set forth in Schedule 1.1(D);
(c) a Reserve Credit Event has occurred and is continuing;
(d) the Reinsurer fails to pay any undisputed amounts due hereunder or to fund amounts into the Trust Account, as required, and, in each case (i) such amount is in excess
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of $20 million in the aggregate and (ii) such breach has not been cured within thirty (30) calendar days after written notice thereof from the Ceding Company;
(e) the Administrative Services Agreement has been terminated by the Ceding Company in accordance with its terms;
(f) any Recapture Triggering Event of the type specified in (c), (d) or (e) above has occurred under any of the Seller Reinsurance Agreements and is continuing; or
(g) any Recapture Triggering Event of the type specified in (a) or (b) above has occurred under any of the Seller Reinsurance Agreements and is continuing and, on the date that any such Recapture Trigger Event occurs, the Statutory Reserves or General Account Reserves (as applicable and as defined in such Seller Reinsurance Agreement) are equal to or greater than $1 billion.
Recoveries has the meaning set forth in Section 3.1(b).
Reinsurance Recoveries means all amounts actually released to or collected by or on behalf of the Ceding Company under the Existing Reinsurance Agreements in respect of the Covered Insurance Policies, including all recoveries, termination and recapture amounts (including amounts released to the Company from funds withheld accounts and modified coinsurance accounts), returns, amounts in respect of profit sharing and all other sums to which the Ceding Company may be entitled under the Existing Reinsurance Agreements, except to the extent such amounts collected under the Existing Reinsurance Agreements relate to Ceding Company Extra-Contractual Obligations.
Reinsurance Statement Methodology has the meaning set forth in the Master Transaction Agreement; provided, however, that for the purposes of this Agreement, Reinsurance Statement Methodology shall be limited to (i) the items from footnote 4 of the Reinsurance Statement Methodology (i.e., Life Reserves, Accident & Health Reserves, Deposit-type Contracts, Transfers to Separate Accounts and Other Contract Deposit Funds) and (ii) the following items from footnote 6 thereof: Claims Outstanding Life, Claims Outstanding A&H, and Provision for Experience Refunds.
Reinsured Business has the meaning set forth in the Master Transaction Agreement.
Reinsured Liabilities means the General Account Liabilities and the Separate Account Liabilities, including all such Liabilities to the extent resulting from any change made after the Effective Time to the terms of a Covered Insurance Policy in compliance with Section 2.6.
Reinsurer has the meaning set forth in the preamble.
Reinsurer Extra-Contractual Obligations means (i) all Extra-Contractual Obligations other than any Ceding Company Extra-Contractual Obligations and (ii) all Extra-Contractual Obligations to the extent arising out of or resulting from any Buyer Product Tax Non-Compliance.
Reinsurer Indemnified Parties has the meaning set forth in Section 9.2.
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Replacement Administrator has the meaning set forth in Section 3.8(b).
Representative has the meaning set forth in the Master Transaction Agreement.
Required Balance means, as of any date of determination, an amount equal to one hundred percent (100%) of the General Account Reserves, plus the Unamortized IMR Amount, minus the Policy Loan Balance, minus the Uncollected/Deferred Premiums, in each case, as of such date; provided, that in the event of a Reserve Credit Event, the Required Balance shall not be less than the amount required to permit the Ceding Company to obtain full Reserve Credit; and provided, further, that the Required Balance shall be reduced by the Statutory Book Value of each Commercial Mortgage Loan set forth on Schedule A-2 of the Trust Agreement for a reasonable period of time (not to exceed ninety (90) days) until such Commercial Mortgage Loan can be pledged to the Trustee and held by the Trustee in the Trust Account in accordance with the terms of the Trust Agreement; and provided, further, that if (i) the numerical value of the Required Balance as calculated above (without regard to the foregoing proviso) is $5 million or less or (ii) the sum of the numerical value of the Required Balance as calculated above plus the numerical value of the Required Balance, as defined and calculated under each of the Seller Reinsurance Agreements (without regard to the foregoing clause (i)), is $25 million or less, and in each case no Triggering Event has occurred, the Required Balance hereunder shall automatically be reduced to zero as of such date of determination and all future dates of determination.
Reserve Credit means full Statutory Financial Statement credit for the reinsurance ceded to the Reinsurer under this Agreement in the Ceding Companys NAIC annual statement blank and in all Statutory Financial Statements required to be filed with any Governmental Body charged with supervision of insurance companies in the Ceding Company Domiciliary State.
Reserve Credit Event means any event that would cause the Ceding Company to not be permitted to receive Reserve Credit and that such event has not been remedied within thirty (30) days following the end of the calendar quarter in which such event occurs.
Retention Dispute means, with respect to one or more Specified Reinsurers, the refusal by such Specified Reinsurer to pay when due any amounts owed under the applicable Existing Reinsurance Agreement with respect to the Covered Insurance Policies following such Specified Reinsurers written notice of termination or other written notice (including by electronic mail) alleging a breach of the terms of such Existing Reinsurance Agreement by reason of either (a) a breach of retention requirements giving rise to a termination right or (b) a purported failure by the Ceding Company to obtain consent, including any waiver of retention requirements, of such Specified Reinsurer under such Existing Reinsurance Agreement in connection with the reinsurance of the Covered Insurance Policies as contemplated hereunder.
SAP means, with respect to any insurance company, the statutory accounting principles prescribed or permitted by the insurance regulatory authorities of the state of domicile of such insurance company, consistently applied throughout the periods involved.
Security Funding Reporting Date has the meaning set forth in Section 4.8(a).
Seller Ceding Commission has the meaning set forth in the Master Transaction Agreement.
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Seller Reinsurance Agreements means the three (3) reinsurance agreements, each effective as of the Effective Time, by and between Reinsurer (or its Affiliates) and each of the Sellers other than the Ceding Company.
Separate Account Liabilities means all Liabilities arising out of or relating to the Covered Insurance Policies, whether incurred before, at or after the Effective Time, to the extent payable out of the Separate Accounts (including without limitation all fees and other amounts payable out of the Separate Accounts under Investment Product Agreements or Stable Value Wrap Agreements); provided, the Separate Account Liabilities do not include Excluded Liabilities.
Separate Account Policies means those Covered Insurance Policies that provide for, or are issued through, a Separate Account.
Separate Account Premium means those Premiums collected by the Ceding Company pursuant to Separate Account Policies that are required to be deposited into the related Separate Account under the terms of such Separate Account Policies.
Separate Account Reserves means the aggregate amount of reserves of the Ceding Company attributable to the Separate Account Liabilities, calculated in accordance with SAP applicable to the Ceding Company (without regard to the reinsurance provided under this Agreement).
Separate Accounts means the registered and unregistered separate accounts of the Ceding Company applicable to the Covered Insurance Policies as identified in Schedule 1.1(E) hereto.
Specified BOLI/COLI Policies means those Covered Insurance Policies set forth in Schedule 1.1(F).
Specified Reinsurance Agreement means an Existing Reinsurance Agreement under which a Specified Reinsurer has asserted a Retention Dispute; provided, that an Existing Reinsurance Agreement shall not be a Specified Reinsurance Agreement if (a) the applicable Existing Reinsurer has executed and delivered to the Ceding Company or an Affiliate thereof a letter or other document evidencing such Existing Reinsurers consent to, or irrevocable waiver of, all restrictions contained in such Existing Reinsurance Agreement relating to the reinsurance of the Covered Insurance Policies as contemplated hereunder or following written notice to such Existing Reinsurer of the reinsurance contemplated hereunder or otherwise, the Existing Reinsurer has continued to accept Existing Reinsurance Premium and pay any applicable Reinsurance Recoveries without written objection or a reservation of rights (including by electronic mail) for a period of three (3) years following notice by either Party to such Existing Reinsurer of the consummation of the transactions contemplated under this Agreement; (b) the applicable Retention Dispute has been resolved in favor of the Ceding Company in accordance with Section 2.3(c) hereof; or (c) the applicable Existing Reinsurer fails to pay any amounts due under such Existing Reinsurance Agreement for any reason (including insolvency of such reinsurer or otherwise) other than (i) a Retention Dispute or (ii) the failure of the Ceding Company, pursuant to Section 2.3(b), to remit Existing Reinsurance Premiums to any such Existing Reinsurer that is a Specified Reinsurer.
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Specified Reinsurer means an Existing Reinsurer, other than (a) the Reinsurer or any of its Affiliates, or (b) any other reinsurer that has executed and delivered to the Ceding Company or an Affiliate thereof a letter or other document evidencing its consent to, or irrevocable waiver of, all restrictions contained in such Existing Reinsurance Agreement relating to the reinsurance of the Covered Insurance Policies as contemplated hereunder or following written notice to such reinsurer of the reinsurance contemplated hereunder or otherwise, the Existing Reinsurer has continued to accept Existing Reinsurance Premium and pay any applicable Reinsurance Recoveries without written objection or a reservation of rights for a period of three (3) years following notice by either Party to such reinsurer of the consummation of the transactions contemplated under this Agreement.
Stable Value Wrap Agreements has the meaning set forth in the Master Transaction Agreement.
Statutory Book Value means with respect to any Eligible Asset or Commercial Mortgage Loan, the sum of (a) the dollar amount thereof stated, or would be stated, on the Statutory Financial Statements as admitted assets of the Reinsurer, calculated in accordance with SAP applicable to the Reinsurer, but disregarding any permitted practices applicable to the Reinsurer, plus (b) the due and accrued investment income on such Eligible Asset or Commercial Mortgage Loan as of the date on which Statutory Book Value is determined.
Statutory Financial Statements means, with respect to any Party, the annual and quarterly statutory financial statements of such Party filed with the Governmental Body charged with supervision of insurance companies in the jurisdiction of domicile of such Party to the extent such Party is required by Applicable Law to prepare and file such financial statements.
Tax has the meaning set forth in the Master Transaction Agreement.
Terminal Accounting Period means the Accounting Period during which the Recapture Date or Termination Date occurs.
Terminal Settlement has the meaning set forth in Section 8.4.
Terminal Settlement Statement has the meaning set forth in Section 8.4.
Termination Date has the meaning set forth in Section 8.3(b).
Termination Event means any failure by the Ceding Company to pay any undisputed amounts due to the Reinsurer under this Agreement where such amount is in excess of $20 million in the aggregate, if such failure has not been cured within thirty (30) calendar days after written notice thereof from the Reinsurer.
Third-Party Claim has the meaning set forth in Section 9.3(a).
Total Adjusted Capital means, at any date of determination, with respect to any insurance company, its total adjusted capital as calculated in accordance with the most current formulae for calculating such amount adopted by the insurance regulatory authority in such insurance companys state of domicile.
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TPA has the meaning set forth in Section 3.8(a).
Trail Commissions has the meaning set forth in the Master Transaction Agreement.
Transaction Agreements means the Master Transaction Agreement and each of the Ancillary Agreements other than this Agreement.
Transaction IMR Amount means the sum of (i) the amount of the interest maintenance reserve, calculated on an after-tax basis, that is created on the Closing Date as a direct result of the transactions contemplated by this Agreement determined in accordance with SAP applicable to the Ceding Company, plus (or minus, if the amount of the interest maintenance reserve is decreased due to realized losses) (ii) any interest maintenance reserve, calculated on an after-tax basis, that is created following the Closing Date with respect to the assets supporting the Reinsured Liabilities (including as a result of the disposition of assets in connection with the payment of the Terminal Settlement, if applicable) determined in accordance with SAP applicable to the Reinsurer.
Transition Services Agreement means the Transition Services Agreement effective as of the Effective Time between the Ceding Company and the Reinsurer.
Treasury Regulations means the Treasury Regulations (including temporary and proposed Treasury Regulations) promulgated by the United States Department of Treasury with respect to the Code or other United States federal Tax statutes.
Triggering Event means any of the following occurrences:
(a) the occurrence of the event set forth in Schedule 1.1(G);
(b) any Recapture Triggering Event has occurred and is continuing;
(c) any Triggering Event of the type specified in (a) above has occurred under any of the Seller Reinsurance Agreements and is continuing; or
(d) the Reinsurer fails to pay any undisputed amounts due hereunder or to fund amounts into the Trust Account and/or provide sufficient available amounts under Qualifying LOCs (if any), as required, and, in each case (i) such amount is in excess of $10 million in the aggregate and (ii) such breach has not been cured within thirty (30) calendar days after written notice thereof from the Ceding Company.
Triggering Event Collateralization Amount means, at any date of determination, the aggregate Fair Market Value of the Eligible Assets in the Trust Account (including the aggregate available amount under Qualifying LOCs (if any) in the Trust Account).
Trust Account means the trust account established by the Reinsurer for the benefit of the Ceding Company under the Trust Agreement.
Trust Agreement means that certain Trust Agreement, dated as of the date hereof, by and among the Reinsurer, the Ceding Company and The Northern Trust Company, as trustee,
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substantially in the form of Exhibit A hereto. Trustee has the meaning set forth in the Trust Agreement.
UCC means the Uniform Commercial Code as in effect from time to time in the Ceding Company Domiciliary State.
Unamortized IMR Amount means, with respect to any date of determination, an amount equal to the portion of the IMR Amount which remains unamortized as of such date, determined in accordance with SAP applicable to the Reinsurer.
Unamortized Portion of the Ceding Commission means, as of any date of determination, the unamortized portion of the Ceding Companys share of the Aggregate Ceding Commission attributable to the reinsurance hereunder calculated by amortizing the Aggregate Ceding Commission in accordance with Schedule 1.1(H). If the Parties cannot agree on the amount of the Unamortized Portion of the Ceding Commission as of the Termination Date, the issue will be referred to, and conclusively determined by Milliman, Inc. (or, if Milliman, Inc. is unable or unwilling to act in such capacity, another actuarial consultant mutually agreed by the Parties independent public accountants), whose fees will be shared equally by the Parties.
Uncollected/Deferred Premiums means, as of any date of determination, the sum of (i) uncollected premiums and agents balances in the course of collection in respect of the Covered Insurance Policies, as of such date, as would be reflected in line 15.1, column 3 in the Assets section of the NAIC statement blank used to prepare the Ceding Companys balance sheet in its most recent Statutory Financial Statement or if the line number is changed pursuant to relevant guidance from the NAIC, the successor line number to such line number, plus (ii) deferred premiums and agents balances and installments booked but deferred and not yet due in respect of the Covered Insurance Policies, as of such date, as would be reflected in line 15.2, column 3 in the Assets section of the NAIC statement blank used to prepare the Ceding Companys balance sheet in its most recent Statutory Financial Statement or if the line number is changed pursuant to relevant guidance from the NAIC, the successor line number to such line number, in each case determined in accordance with SAP and Applicable Law of the Ceding Company Domiciliary State.
ARTICLE II.
BASIS OF REINSURANCE AND BUSINESS REINSURED
Section 2.1 Reinsurance.
(a) Subject to the terms and conditions of this Agreement, as of the Effective Time, the Ceding Company hereby cedes on an indemnity reinsurance basis to the Reinsurer, and the Reinsurer hereby accepts and agrees to assume and indemnity reinsure, one hundred percent (100%) of all General Account Liabilities on a coinsurance basis and one hundred percent (100%) of all Separate Account Liabilities on a modified coinsurance basis. This Agreement is solely between the Ceding Company and the Reinsurer and shall not create any legal relationship whatsoever between the Reinsurer and any Person other than the Ceding Company. The reinsurance effected under this Agreement shall be maintained in force, without reduction, unless such reinsurance is recaptured, terminated or reduced as provided herein. On and after the
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Effective Time, the Reinsurer shall be obligated to make payments to or on behalf of the Ceding Company, as and when due, of all Reinsured Liabilities.
(b) Upon the reinstatement or reissuance of any reduced, terminated, lapsed or surrendered Covered Insurance Policy, such Covered Insurance Policy shall be automatically reinsured hereunder. The Reinsurer will be entitled to retain any Premiums and interest that are received for any such reinstatement.
Section 2.2 Separate Accounts.
(a) For each of the Separate Account Policies, the amount to be invested on a variable basis or otherwise held in the related Separate Accounts in accordance with the terms of such Separate Account Policy shall be held by the Ceding Company in the Separate Accounts, and all Separate Account Premiums shall be deposited in the Separate Accounts to the extent required by such Separate Account Policies. The Ceding Company shall retain, control and own all assets contained in the Separate Accounts and shall hold the Separate Account Reserves with respect to the Separate Account Policies that are funded, in whole or in part, by one or more of the Separate Accounts and such Separate Account Reserves shall be reported by the Ceding Company on its Separate Account balance sheets, consistent with SAP applicable to the Ceding Company.
(b) For each of the Separate Account Policies, the amount to be paid with respect to surrenders, loans, annuitization payments, death benefits, Compensation or any other amounts with respect to such Separate Account Policy shall be paid out of the Separate Accounts to the extent required by such Separate Account Policy. Amounts to be paid under Separate Account Policies which exceed the assets of the Separate Accounts allocable to such Separate Account Policies shall be paid from the general account to the extent required by the applicable Separate Account Policies, but shall nevertheless constitute General Account Liabilities. For purposes hereof, the portion of the Separate Account Liabilities attributable to the Separate Account Policies shall be determined in a manner consistent with the applicable Separate Account Policies and Applicable Law.
Section 2.3 Existing Reinsurance.
(a) This Agreement is written net of Reinsurance Recoveries, however, subject to Section 2.3(b), the Reinsurer agrees to make payment on behalf of the Ceding Company of all General Account Liabilities, calculated without regard to the reduction for Reinsurance Recoveries, in consideration for the Ceding Companys assignment to the Reinsurer of the Reinsurance Recoveries in Section 3.1(b)(ii). Subject to Section 2.3(b), as part of the Reinsured Liabilities, the Reinsurer shall reimburse the Ceding Company for, or pay on behalf of the Ceding Company, all premiums and other amounts, if any, under the Existing Reinsurance Agreements either due and unpaid or with respect to periods on or after the Effective Time (Existing Reinsurance Premium). The Reinsurer shall bear all risk of collecting amounts due in respect of the Covered Insurance Policies under the Existing Reinsurance Agreements other than with respect to a Specified Reinsurance Agreement. The Reinsurer, on behalf of the Ceding Company, shall assume all responsibility for administration of the Existing Reinsurance Agreements including any Specified Reinsurance Agreement (in accordance with the terms thereof) at the same time as the
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Reinsurer assumes responsibility for the administration of the Covered Insurance Policies pursuant to the Administrative Services Agreement for so long as such agreement remains in effect.
(b) With respect to a Specified Reinsurance Agreement, subject to Section 2.3(c), (i) the Ceding Company shall be responsible for the uncollected or uncollectible Reinsurance Recoveries related to such Specified Reinsurance Agreement, (ii) any amounts paid to the Reinsurer by the Ceding Company that are subsequently received by the Ceding Company from the reinsurer under the applicable Specified Reinsurance Agreement shall be retained by the Ceding Company, and (iii) the Ceding Company shall be entitled to withhold, or direct the Administrator to withhold, the payment of Premiums otherwise due to the Reinsurer hereunder in an amount equal to the Existing Reinsurance Premium due and payable to a Specified Reinsurer under its Specified Reinsurance Agreement (and, to the extent the Reinsurer receives any such amounts, the Reinsurer shall cause such amounts to be remitted to the Ceding Company); provided that, if the Specified Reinsurer then refuses to pay amounts due based on such non-payment of Existing Reinsurance Premium or terminates the Specified Reinsurance Agreement, the Ceding Company shall continue to be responsible for such uncollected or uncollectible amounts and have the rights and benefits of the Specified Reinsurer under the terms of the Specified Reinsurance Agreement as if the Ceding Company were the Specified Reinsurer. If the Reinsurer receives any Reinsurance Recoveries related to a Retention Dispute, the Reinsurer shall promptly endorse and remit such amounts to the Ceding Company to the extent of amounts previously paid by the Ceding Company to the Reinsurer.
(c) If a Retention Dispute is resolved in favor of the Ceding Company, then such Existing Reinsurance Agreement shall no longer be deemed a Specified Reinsurance Agreement effective as of effective date of such resolution and the Reinsurer shall be financially responsible for any Reinsurance Recoveries due from such relevant Existing Reinsurer thereafter and the Ceding Company and the Reinsurer shall settle appropriately any amounts between them pursuant to the terms of this Agreement. If the Parties reasonably determine that a Retention Dispute is not likely to be resolved, then the Parties will discuss in good faith the proposed treatment of the relevant Specified Reinsurance Agreement, including the possibility of terminating, recapturing or novating the same to the Reinsurer, its Affiliate or a third party mutually agreed to by the Parties, with no obligation of the Reinsurer to agree to any such treatment that would have an adverse economic impact on it.
(d) From and after the Effective Time, except as otherwise required to comply with Applicable Law, the Ceding Company shall not voluntarily amend, terminate or recapture any Existing Reinsurance Agreement or enter into any new reinsurance agreement that would constitute an Existing Reinsurance Agreement with respect to any of the Covered Insurance Policies without the Reinsurers prior written consent, which shall not be unreasonably withheld, conditioned or delayed.
(e) The Ceding Company may, with the Reinsurers prior written consent, which shall not be unreasonably withheld, conditioned or delayed, (i) bifurcate the Existing Reinsurance Agreements such that the third party reinsurance arrangements relating to the Covered Insurance Policies are subject to their own separate agreement or agreements; provided that such third party reinsurance agreements relating to the Covered Insurance Policies resulting from such bifurcation shall be on the same terms and conditions as the reinsurance of the Covered Insurance
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Policies under the Existing Reinsurance Agreements, and (ii) amend, modify or terminate (including termination of new business under) any Existing Reinsurance Agreement with respect to any Policies covered thereunder that are not Covered Insurance Policies so long as such amendment, modification or termination has no effect on the third party reinsurance relating to the Covered Insurance Policies.
(f) Subject to the provisions of Section 2.3(b), liabilities ceded under the terms of any Existing Reinsurance Agreement, as shall be terminated or recaptured or as may be reduced or altered to reflect any amendment of such Existing Reinsurance Agreement, shall be ceded automatically hereunder to the Reinsurer without any further action, subject to the receipt by the Reinsurer, concurrently with such termination or recapture, of any Reinsurance Recoveries resulting from any such termination or recapture, including any reserve transfer or similar transfer or settlement amount received by the Ceding Company from the applicable Existing Reinsurer and any amounts released to the Ceding Company from funds withheld accounts, modified coinsurance accounts or otherwise. Subject to the provisions of Section 2.3(b), the Reinsurer shall pay the applicable portion of any resulting special transfer or recapture fee incurred by the Ceding Company as provided for under the terms of the recapture or termination agreements or instruments for such Existing Reinsurance Agreements.
(g) Subject to the Administrators obligations set forth in the Administrative Services Agreement, the Ceding Company agrees that it shall take any actions reasonably requested by the Reinsurer to maintain in full force and effect each of the Existing Reinsurance Agreements to the extent such action is not an action contemplated to be taken by the Administrator under the Administrative Services Agreement. The Ceding Company shall take such actions, at the expense and reasonable direction of the Reinsurer, to enforce its rights thereunder, including, without limitation, at the Reinsurers reasonable request, requiring, if applicable and to the extent permitted under the terms thereof, the collateralization by the Existing Reinsurer of reserve balances and other amounts thereunder. As promptly as reasonably practicable, the Ceding Company shall provide the Reinsurer with copies of all correspondence received with respect to any Existing Reinsurance Agreements, including with respect to any proposed amendment, termination, assignment, recapture or rate increase. With respect to any notice of proposed increases to any rates to the extent relating to the Covered Insurance Policies under the Existing Reinsurance Agreements, the Ceding Company shall provide to the Reinsurer any related written correspondence to or from the Existing Reinsurer under the applicable Existing Reinsurance Agreements with respect to such proposed rate increase and shall consult with the Reinsurer with respect to any such rate increase and shall invite the Reinsurer to participate in all discussions with, and written correspondence to, such Existing Reinsurer with respect thereto. In addition, the Ceding Company shall not accept or reject any such proposed rate increases (to the extent such acceptance or rejection is available under the terms of such Existing Reinsurance Agreement) without the prior written consent of the Reinsurer, which shall not be unreasonably withheld, conditioned or delayed. With the Reinsurers prior written consent, which shall not be unreasonably withheld, conditioned or delayed, the Ceding Company may exercise any right it may have to recapture risks ceded thereby to the extent relating to the Covered Insurance Policies under any of the Existing Reinsurance Agreements or to otherwise terminate any Existing Reinsurance Agreements as to the Reinsured Liabilities and shall, at the Reinsurers instruction and expense, effect any such action with respect to the management or administration of the Existing Reinsurance Agreements (to the extent such agreements cover the Covered Insurance
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Policies) as the Reinsurer shall reasonably request, including, without limitation, termination or recapture as to the Reinsured Liabilities, as may be available under or with respect to the terms of any Existing Reinsurance Agreements; provided, the Reinsurer shall not voluntarily amend, terminate or recapture any Existing Reinsurance Agreement with respect to any Policies covered thereunder that are not Covered Insurance Policies without the Ceding Companys prior written consent; provided, further, that the Reinsurer shall indemnify and hold harmless the Ceding Company for Losses arising out of any such action so requested by the Reinsurer in accordance with Article IX.
(h) The Reinsurer shall have the right to renew expiring or terminating Existing Reinsurance Agreements, to the extent relating to the Covered Insurance Policies, that were in-force as of the Effective Time; provided, however, that prior to such renewals in the Ceding Companys name, the Reinsurer shall use commercially reasonable efforts to enter into a new ceded reinsurance agreement in the Reinsurers name to replace such expiring or terminating Existing Reinsurance Agreements with respect to such Covered Insurance Policies; provided, further, in connection with any recapture or termination under Section 8.3, the Reinsurer shall cooperate with the Ceding Company and use commercially reasonable efforts to seek to novate such new ceded reinsurance agreements under the foregoing proviso (to the extent such agreements cover the Covered Insurance Policies) to the Ceding Company with effect as of the Recapture Date or Termination Date, as applicable, whereupon the Ceding Company shall have the benefits and obligations under such agreements, in each case as of the Recapture Date or the Termination Date, as applicable; provided, further, the Reinsurer shall not renew any Existing Reinsurance Agreements to the extent relating to any Policies covered thereunder that are not Covered Insurance Policies without the Ceding Companys prior written consent, which shall not be unreasonably withheld, conditioned or delayed.
Section 2.4 Non-Guaranteed Elements.
(a) From and after the Effective Time, the Ceding Company shall retain the ultimate authority to set and establish the Non-Guaranteed Elements with respect to the Covered Insurance Policies in accordance with the Non-Guaranteed Elements Policy, the terms of the Covered Insurance Policies, Applicable Law and generally accepted actuarial standards of practice; provided that, the Ceding Company shall give the Reinsurer ten (10) Business Days prior written notice before a change to a Non-Guaranteed Element, which shall specify the planned change. The Reinsurer may, from time to time (including during the notice period specified above), make recommendations to the Ceding Company with respect to Non-Guaranteed Elements, including revisions to the planned change, so long as the recommendations comply and are consistent with the Non-Guaranteed Elements Policy (including any exceptions thereto mutually agreed in writing), the terms of the Covered Insurance Policies, Applicable Law and generally accepted actuarial standards of practice (the NGE Standards). The Ceding Company shall fully consider all such recommendations and act reasonably and in good faith in determining whether any such recommendations should be accepted and shall not unreasonably delay implementation of any accepted recommendations; provided, that the Reinsurer shall indemnify and hold harmless the Ceding Company for Losses arising out of or resulting from the Ceding Companys acceptance and implementation of the Reinsurers recommendations in accordance with Article IX. The Ceding Company agrees that in considering any such recommendations in good faith, the Ceding Company shall take into account, among other factors, the relative
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economic interests of the Ceding Company and the Reinsurer in the acceptance and implementation of such recommendation together with the written report of the appointed actuary.
(b) From time to time, either Party may propose changes or exceptions to the Non-Guaranteed Elements Policy and will consult in good faith with the other Party as to such proposed changes or exceptions.
Section 2.5 Reserves and Liabilities Reporting. Pursuant to the Administrative Services Agreement and in accordance with the terms thereof for so long as such agreement remains in effect, the Reinsurer shall, in its capacity as Administrator, provide to the Ceding Company information relating to the reserves and liabilities in respect of the Covered Insurance Policies.
Section 2.6 Insurance Contract Changes. Except as directed by or consented to in writing by the Reinsurer or as performed by the Reinsurer (or its duly appointed assignee or delegatee) acting on behalf of the Ceding Company in the Reinsurers capacity as Administrator, the Ceding Company, on its own initiative, shall not change the terms or conditions of any Covered Insurance Policy, other than for any change required by the terms of any Covered Insurance Policies, any Governmental Body or Applicable Law or otherwise permitted by the terms of this Agreement (including Section 2.4). If the Reinsured Liabilities under any of the Covered Insurance Policies are changed (a) because of changes made on or after the Effective Time in the terms and conditions of the Covered Insurance Policies effected by the Reinsurer acting in its capacity as Administrator or at the direction of or as consented to in writing by the Reinsurer or (b) pursuant to the terms of any Covered Insurance Policies or to comply with the requirements of any Governmental Body or Applicable Law or otherwise permitted by the terms of this Agreement (including Section 2.4), the Reinsurer will participate, on the reinsurance basis set forth in Section 2.1, and assume and pay one hundred percent (100%) of all Reinsured Liabilities resulting from such change; provided, that any change arising under (a) above must be in compliance with Applicable Law. With respect to any change required by the terms of any Covered Insurance Policies, any Governmental Body or Applicable Law, which the Reinsurer is not voluntarily implementing, the Ceding Company shall, to the extent practicable, prior to the effectiveness of any such change, promptly notify the Reinsurer of such proposed change and afford the Reinsurer, at the Reinsurers expense, the opportunity, to the extent practicable, to object to such change under applicable administrative procedures (both formal and informal). In the event the Reinsurer seeks to object as provided in the previous sentence, the Reinsurer shall indemnify and hold the Ceding Company harmless for any Losses so suffered by the Ceding Company in connection with such administrative procedures in accordance with Article IX.
Section 2.7 Liability. The Reinsurers Liability under this Agreement shall attach simultaneously with that of the Ceding Company under the Covered Insurance Policies and, subject to Section 2.6, the Reinsurers Liability under this Agreement shall be subject in all respects to the same risks, terms, rates, conditions, assessments and Premiums paid to the Ceding Company, and to the same modifications, alterations and cancellations of the Covered Insurance Policies as the Ceding Company.
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Section 2.8 Stable Value Wrap Agreements.
(a) From and after the Effective Time, the Ceding Company shall not agree to amend, terminate or assign any Stable Value Wrap Agreements or waive any of its rights under any such Stable Value Wrap Agreement without the written consent of the Reinsurer, which shall not be unreasonably withheld, conditioned or delayed, or as otherwise required to comply with Applicable Law; provided, that the Ceding Company shall, at the Reinsurers request and expense, amend, modify or terminate Stable Value Wrap Agreements in the manner and at the time reasonably requested by the Reinsurer, as may be available under or with respect to the terms of such Stable Value Wrap Agreements.
(b) At the Reinsurers expense, the Ceding Company shall take any actions reasonably requested by the Reinsurer to assist the Reinsurer in its efforts pursuant to the terms of the Administrative Services Agreement to maintain in full force and effect each of the Stable Value Wrap Agreements and to perform fully each of the obligations thereunder and effect and implement any related actions requested by the Reinsurer. The Ceding Company shall, at the expense of the Reinsurer, assist the Reinsurer in the enforcement of the rights of the Ceding Company under the Stable Value Wrap Agreements. In addition, the Ceding Company shall, at the Reinsurers instruction and expense, cooperate with the Reinsurer to effect any such action with respect to the management or administration of the Stable Value Wrap Agreements as the Reinsurer shall reasonably request, as may be permitted under the terms of any Stable Value Wrap Agreement; provided, that the Reinsurer shall indemnify and hold harmless the Ceding Company for Losses arising out of or resulting from any such action so requested by the Reinsurer in accordance with Article IX.
Section 2.9 Internal Replacements. The Ceding Company shall not, and shall cause each of its Affiliates not to, without the prior written consent of the Reinsurer, solicit any contractholders, insureds or beneficiaries under any Covered Insurance Policy, or any Distributors, in connection with any Program of Internal Replacement (it being understood that the Ceding Company is not responsible and shall not be liable for any independent action taken by any brokers or Distributors other than employees of the Ceding Company or its Affiliates). As used herein, the term Program of Internal Replacement means any program that is initiated, maintained, sponsored or supported by the Ceding Company or any of its Affiliates to offer on a targeted basis to a class of contractholders, insureds or beneficiaries under Covered Insurance Policies to exchange any Covered Insurance Policy or any portion thereof for another policy or contract written by the Ceding Company or any of its Affiliates that is not included in the Reinsured Business. For the avoidance of doubt, nothing in this Section 2.9 shall prohibit the Ceding Company or any of its Affiliates from engaging in general solicitations or marketing efforts not targeted at contractholders, insureds and beneficiaries under the Covered Insurance Policies, or any Distributors, or otherwise issuing Policies to any Person who contacts the Ceding Company or any of its Affiliates on his or her own initiative without direct solicitation or as a result of such general solicitations or marketing efforts. In the event that a Program of Internal Replacement of the Covered Insurance Policies is required by Applicable Law or at the direction of any Governmental Body, the Ceding Company and the Reinsurer will attempt in good faith to renegotiate this Agreement to carry out its original intent with respect to the sharing of risk between the Parties in accordance with Applicable Law and risk transfer regulations.
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ARTICLE III.
TRANSFER OF ASSETS; PAYMENTS; SETTLEMENTS; ADMINISTRATION AND ACCOUNTING
Section 3.1 Payments by the Ceding Company.
(a) As consideration for the Reinsurers agreement to provide reinsurance pursuant to this Agreement, the Ceding Company will transfer, on the Closing Date in accordance with the Master Transaction Agreement, to the Trust Account (or to the Reinsurer as contemplated by Section 3.3(b) of the Master Transaction Agreement), Eligible Assets and Commercial Mortgage Loans with a statutory book value equal to the Initial Reinsurance Premium determined by reference to the Estimated Statement of General Account Net Settlement with respect to the Covered Insurance Policies. The Ceding Company and the Reinsurer hereby agree that such payment shall be adjusted following the date hereof in accordance with the mechanics set forth therefor in the Master Transaction Agreement.
(b) As additional consideration for the reinsurance provided herein, for so long as the Administrative Services Agreement remains in effect, the Ceding Company hereby sells, assigns, transfers and delivers to the Reinsurer as additional premium hereunder all of the Ceding Companys rights, title and interest in one hundred percent (100%) of all of the following amounts actually received by the Ceding Company or the Reinsurer, whether in its role as reinsurer hereunder or as Administrator, with respect to the Covered Insurance Policies or the Existing Reinsurance Agreements after the Effective Time that are either due and unpaid as of the Effective Time or that arise on any date after the Effective Time (excluding any credits or amounts related to Premium Tax or Compensation with respect to Premium received prior to the Effective Time, but including any such amounts related to Trail Commissions payable after the Effective Time):
(i) Premiums, net of amounts to be allocated and paid to the Separate Accounts;
(ii) Reinsurance Recoveries without duplication of any amount deducted in calculating the Reinsured Liabilities;
(iii) Without duplication, all principal and interest paid on policy loans in respect of the Covered Insurance Policies;
(iv) Without duplication, all charges and fees, including, marketing fees, 12b-1 fees, record-keeping fees, policy loan fees, mortality and expense risk charges, administrative expense charges, rider charges, contract maintenance charges, back-end sales loads and other considerations billed separately, and amounts for the pre-Tax amount of any expense reimbursement (other than soft dollars), indemnification, revenue-sharing or other payments made to the Ceding Company by any mutual fund organization attributable to the use of such organizations mutual funds as funding vehicles to the extent attributable to the Covered Insurance Policies;
(v) Without duplication, all amounts that are transferrable from the Separate Accounts to the general account of the Ceding Company in respect of the Covered
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Insurance Policies, including all income and investment management fees related to investments held in the Separate Accounts, to the extent so transferrable; and
(vi) Without duplication, all other payments, collections, releases of funds and recoveries paid to the Ceding Company, in each case, relating to the Reinsured Liabilities, the Covered Insurance Policies, including all premiums, payments, reimbursements, interest or other amounts that the Ceding Company receives after the Effective Time in connection with any reinstatement or reissuance of any Discovered Policy that becomes a Covered Insurance Policy or any conversion, exchange or replacement policy that is reinsured under this Agreement, in each case net of amounts to be allocated to the Separate Accounts; in each case, net of the Existing Reinsurance Premium due and payable to any Specified Reinsurer under its Specified Reinsurance Agreements and Reinsurance Recoveries received by the Ceding Company from any Specified Reinsurer under its Specified Reinsurance Agreements, to the extent set forth in Section 2.3 (such net amount of items (i) through (vi) being the Recoveries).
(c) The Ceding Company agrees and acknowledges that the Reinsurer and its permitted assigns and delegates are entitled to enforce, in the name of the Ceding Company, all rights at law or in equity or good faith claims of the Ceding Company with respect to such Recoveries. If necessary for such collection, the Ceding Company shall reasonably cooperate, at the Reinsurers expense, in any litigation or other dispute resolution mechanism relating to such collection. The Parties acknowledge and agree that the Reinsurer shall be responsible for and has hereby assumed the financial risk of any uncollected or uncollectible Recoveries. The Ceding Company shall transfer such Recoveries to the Reinsurer to the extent received by the Ceding Company, together with any pertinent information that the Ceding Company may have relating thereto. Direct receipt by the Reinsurer or any of its Affiliates of any such Recoveries shall satisfy the Ceding Companys obligations to transfer any such amount to the Reinsurer hereunder.
(d) The Parties intend the Ceding Companys assignment pursuant to the first sentence of Section 3.1(b) to be a present assignment of all of the Ceding Companys rights, title and interest and not an assignment as collateral. However, to the extent that such assignment is not recognized as a present assignment, is not valid or is recharacterized as a pledge rather than a lawful conveyance to the Reinsurer, the Ceding Company does hereby grant to the Reinsurer a security interest in all of the Ceding Companys right, title and interest (legal, equitable or otherwise), if any, to all Recoveries (and any Bank Account, lockbox or other account set up for the receipt of the Recoveries after the Effective Time) (the Collateral) to secure the Ceding Companys obligations under this Agreement. All costs and expenses incurred in connection with obtaining a first priority perfected security interest shall be borne by the Reinsurer.
(e) The Ceding Company shall execute and deliver and the Reinsurer is authorized to execute and deliver any and all financing statements reasonably requested by the Reinsurer to the extent that it may appear appropriate to the Reinsurer to file such financing statements in order to perfect the Reinsurers title and security interest under Article 9 of the UCC to any and all Collateral, and the Ceding Company shall do such further acts and things as the Reinsurer may reasonably request in order that the security interest granted hereunder may be maintained as a first perfected security interest.
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(f) Upon the failure of the Ceding Company to remit any Recoveries to the Reinsurer, which failure remains uncured ten (10) days after written notice thereof is received by the Ceding Company, the Reinsurer shall have, in addition to all other rights under this Agreement or under Applicable Law, the following rights:
(i) the right to exercise all rights and remedies granted a secured party under the Uniform Commercial Code, as said code has been enacted in the State of New York or any other applicable jurisdiction (the UCC), as though all the Collateral constituted property subject to a security interest under Article 9 thereof;
(ii) the right to set-off;
(iii) the right to intercept and retain moneys and property in any lockbox or other account set up for the receipt of Recoveries;
(iv) without giving rise to any right of double recovery under this Section 3.1 and Section 9.2, the right to reasonable attorneys fees incurred in connection with the enforcement of this Agreement or in connection with the disposition of the Collateral; and
(v) the right to dispose of the Collateral in accordance with the UCC.
(g) Sections 3.1(d), and (e) are being included in this Agreement to ensure that, if an insolvency or other court determines that, notwithstanding the provisions of this Agreement and the express intent of the Parties, the Ceding Company retained ownership of or any rights in the Collateral, the Reinsurers rights to the Collateral are protected with a first priority, perfected security interest, and it is the intent of the Parties that this Section 3.1 be interpreted as such.
Section 3.2 Payments by the Reinsurer. In consideration of the cession by the Ceding Company of the Covered Insurance Policies, the Reinsurer shall pay to the Ceding Company, (i) on the Closing Date, its respective Seller Ceding Commission attributable to the reinsurance hereunder and payable on the Closing Date in the manner contemplated in Section 3.3(b) of the Master Transaction Agreement, (ii) the Holdback Amount (if payable pursuant to the Master Transaction Agreement) in the manner contemplated in Section 3.3(c) of the Master Transaction Agreement and (iii) the Qualifying Post-Closing Sales Adjustment Amount in the manner contemplated in Section 2.6 of the Master Transaction Agreement. In addition, the Reinsurer shall pay and discharge, or indemnify the Ceding Company for the payment and discharge of, all Reinsured Liabilities which are or which become due and payable at or at any time after the Effective Time.
Section 3.3 Defenses. The Reinsurer accepts, reinsures and assumes the Reinsured Liabilities subject to any and all defenses, set-offs and counterclaims to which the Ceding Company would be entitled in relation to third parties with respect to the Reinsured Liabilities, it being expressly understood and agreed to by the Parties that no such defenses, set-offs, or counterclaims are or shall be waived in relation to third parties by the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby and that the Reinsurer is and shall be fully subrogated in and to all such defenses, set-offs and counterclaims in relation to third parties.
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Section 3.4 Guaranty Association Assessments and Premium Taxes. For so long as the Administrative Services Agreement remains in effect, the Ceding Company and the Reinsurer shall settle amounts due with regard to guaranty association assessments, Premium Taxes and Premium Tax credits included in the Reinsured Liabilities in accordance with the terms of the Administrative Services Agreement.
Section 3.5 Delayed Payments. If there is a delayed settlement of any payment due hereunder, interest will accrue on such payment at the then applicable prime rate of interest, as reported by The Wall Street Journal (or, if The Wall Street Journal has ceased or suspended regular publication, another nationally distributed newspaper of general circulation reasonably selected by the Ceding Company) until settlement is made. For purposes of this Section 3.5, a payment will be considered overdue, and such interest will begin to accrue, on the first (1st) Business Day immediately following the date such payment is due. For greater clarity, (i) a payment shall be deemed to be due hereunder on the last date on which such payment may be timely made under the applicable provision, and (ii) interest will not accrue on any payment due to a Party hereunder unless the delayed settlement thereof was caused by the Party required to make the payment.
Section 3.6 Offset and Recoupment Rights. Any debits or credits incurred on or after the Effective Time in favor of or against either the Ceding Company or the Reinsurer with respect to this Agreement are deemed mutual debits or credits and may be set off and recouped, and only the net balance shall be allowed or paid. In the event of any insolvency, rehabilitation, conservatorship or comparable proceeding (an Insolvency) by or against the Ceding Company or the Reinsurer, the rights of offset and recoupment set forth in this Section 3.6 shall apply to the fullest extent permitted by Applicable Law.
Section 3.7 Administration and Accounting. Subject to the terms of this Agreement (including Section 2.4) and the Transition Services Agreement, the Reinsurer, in its capacity as Administrator, shall administer the Covered Insurance Policies, the Separate Accounts and the Existing Reinsurance Agreements to the extent provided in the Administrative Services Agreement in accordance with the terms thereof and so long as it remains in effect.
Section 3.8 Termination of Administrative Services Agreement. Following any termination of the Administrative Services Agreement and without limiting the Ceding Companys right under Section 8.3 to recapture the reinsurance ceded to the Reinsurer under this Agreement, the following shall apply until the Ceding Company so recaptures such reinsurance or all liabilities of the Ceding Company under all Covered Insurance Policies are terminated in accordance with the respective terms thereof, whichever occurs first:
(a) The Ceding Company shall assume responsibility for the administration of the Covered Insurance Policies, the Separate Accounts and the Existing Reinsurance Agreements. The Ceding Company may subcontract or outsource such responsibility to a third party administrator (a TPA) so long as the Ceding Company remains liable to the Reinsurer for the acts of such TPA as if the Ceding Company was performing such administration itself. A TPA can either be an Affiliate of the Ceding Company or a third party.
(b) Subject to the terms and conditions of this Agreement, the Ceding Company or TPA, acting as a replacement administrator (as appropriate, the Replacement Administrator),
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shall have full authority to determine the Liabilities on any Reinsured Liabilities and may pay or settle such Liabilities as it deems appropriate; provided, that the Replacement Administrator acts in accordance with Sections 3.8(c) and (e).
(c) The Replacement Administrator shall administer the Covered Insurance Policies, the Separate Accounts and the Existing Reinsurance Agreements (i) with the skill, diligence and expertise that would reasonably be expected from experienced and qualified personnel performing such duties in like circumstances and (ii) in accordance with (A) applicable industry standards, (B) the terms and conditions of the Covered Insurance Policies, the Separate Accounts and the Existing Reinsurance Agreements and (C) all Applicable Laws and (iii) subject to the foregoing provisions in (i) and (ii), in a manner materially consistent with the skill, diligence and expertise maintained by the Ceding Company and its Affiliates in their administration of the business of the Ceding Company other than the Covered Insurance Policies, to the extent applicable.
(d) The Reinsurer shall reimburse the Ceding Company for the Ceding Companys reasonable out-of-pocket costs for conversion of the administration of the Business to the Replacement Administrator.
(e) The Replacement Administrator shall timely provide to the Reinsurer within thirty (30) calendar days following the end of each Accounting Period during the term of this Agreement, the cash settlement information set forth on Exhibit B for such Accounting Period and the additional information set forth on Exhibit B within the time frames specified therein (Accounting Report).
(f) The Reinsurer shall pay to the Ceding Company, or the Ceding Company shall pay to the Reinsurer, as applicable, amounts due as reflected in each Accounting Report within ten (10) Business Days following delivery of such Accounting Report. The Ceding Company shall be entitled to the payment of Allowances by the Reinsurer with respect to each Accounting Period during the term of this Agreement.
Section 3.9 Certain Reports.
(a) At each RBC Reporting Deadline that pertains to a calendar year end, the Reinsurer shall provide to the Ceding Company a certificate signed by the Chief Financial Officer of the Reinsurer certifying the RBC Ratio of the Reinsurer as of the last day of such calendar year. At each RBC Reporting Deadline that pertains to a calendar quarter other than the calendar quarter ending on December 31, the Reinsurer shall provide to the Ceding Company a certificate signed by the Chief Financial Officer of the Reinsurer to the effect that: (i) if the RBC Ratio of the Reinsurer is equal to or greater than 325% as of the last day of such calendar quarter, confirmation that, in the good faith estimate of the Reinsurer using, to the extent any factors are not reasonably available, reasonable hypothetical amounts, the RBC Ratio of the Reinsurer is equal to or greater than 325% as of the last day of such calendar quarter, or (ii) if the RBC Ratio of the Reinsurer is less than 325% as of the last day of such calendar quarter, its good faith estimate of the RBC Ratio of the Reinsurer as of the last day of such calendar quarter, using, to the extent any factors are not reasonably available, reasonable hypothetical amounts. If such calculation of the RBC Ratio of the Reinsurer would result in a Triggering Event or a Recapture Triggering Event if not cured by
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the Reinsurer within thirty (30) days following the applicable RBC Reporting Deadline, and such shortfall in the RBC Ratio is actually cured by the Reinsurer within thirty (30) days following the applicable RBC Reporting Deadline, then the Reinsurer shall provide to the Ceding Company (I) a description of the manner in which such shortfall was cured and (II) an updated calculation of the RBC Ratio of the Reinsurer to reflect the estimated impact of such cure.
(b) The Reinsurer shall provide written notice of the occurrence of any Triggering Event or a Recapture Triggering Event within five (5) Business Days after becoming aware of its occurrence. In addition, the Reinsurer shall cooperate fully with the Ceding Company and promptly respond to the Ceding Companys reasonable inquiries from time to time concerning the determination of whether a Triggering Event or a Recapture Triggering Event has occurred.
(c) Upon request of the Ceding Company, the Reinsurer shall provide the Ceding Company with the Reinsurers annual and quarterly Statutory Financial Statements and a copy of its annual audited Statutory Financial Statements along with the audit report thereon.
(d) For so long as the Administrative Services Agreement remains in effect, the Reinsurer shall provide to the Ceding Company periodic accounting and other reports with respect to the Covered Insurance Policies, the Separate Accounts, the Existing Reinsurance Agreements and the Monthly Reimbursement Amount as specified in the Administrative Services Agreement. Except as otherwise set forth herein or in the Administrative Services Agreement, settlement with respect to amounts owed hereunder by the Reinsurer to the Ceding Company and by the Ceding Company to the Reinsurer shall be performed through the direct payment by the Reinsurer of the Reinsured Liabilities and direct receipt by the Reinsurer of the Recoveries on an ongoing basis in its capacity as Administrator under the Administrative Services Agreement.
Section 3.10 Books and Records. The Reinsurer shall, and shall cause its Affiliates to, preserve, until such date as may be required by the Ceding Companys records retention policy, as provided to the Reinsurer from time to time, (or such other later date as may be required by Applicable Law), all books and records related to the Business. During such period, upon any reasonable request from the Ceding Company or its Representatives, the Reinsurer shall (a) provide to the Ceding Company and its Representatives reasonable access to such books and records during normal business hours, provided, that such access shall not unreasonably interfere with the conduct of the business of the Reinsurer, and (b) permit the Ceding Company and its Representatives to make copies of such records at the expense of the Ceding Company. Such books and records may be sought under this Section 3.10 by the Ceding Company for any reasonable purpose, including to the extent reasonably required in connection with accounting, audits, potential litigation, litigation, securities law disclosure or other similar purpose.
Section 3.11 Bank Accounts. For so long as the Administrative Services Agreement remains in effect, the Reinsurer may open and maintain one or more Bank Accounts. The Reinsurer shall have the exclusive authority over the Bank Accounts including, without limitation, the exclusive authority to (a) open the Bank Accounts in the name of the Ceding Company, (b) designate the authorized signatories on the Bank Accounts, (c) issue drafts on and make deposits in the Bank Accounts in the name of the Ceding Company, (d) make withdrawals from the Bank Accounts and (e) enter into agreements with respect to the Bank Accounts on behalf of the Ceding Company; provided, that in no event shall the Ceding Company be responsible for any
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fees, overdraft charges or other payments, or Liabilities with respect to any such Bank Accounts or be obligated to provide funding for the Bank Accounts. For so long as the Administrative Services Agreement remains in effect, the Ceding Company shall do all things necessary at the Reinsurers expense to (x) enable and authorize the Reinsurer to use the Ceding Companys existing lockboxes with respect to the Covered Insurance Policies and (y) to enable the Reinsurer to open and maintain the Bank Accounts including, without limitation, executing and delivering such depository resolutions and other documents, in each case, as may be requested from time to time by the banking institutions. For so long as the Administrative Services Agreement remains in effect, the Ceding Company agrees that without the Reinsurers prior written consent it shall not make any changes to the authorized signatories on the Bank Accounts nor attempt to withdraw any funds therefrom.
Section 3.12 Novation of Specified BOLI/COLI Policies; Replacement of Group Covered Insurance Policies.
(a) Subject to the terms of this Section 3.12, if either Party so requests (the Novation Request) at any time between the date hereof and the second (2nd) anniversary of the Closing Date, and subject to obtaining all applicable approvals from any applicable regulators and the affirmative written consent of policyholders, the Parties shall cooperate and use their respective commercially reasonable efforts to novate to the Reinsurer or a designated Affiliate of the Reinsurer any Specified BOLI/COLI Policies that are specified in the Novation Request. Subject to the terms of this Section 3.12, the scope of Specified BOLI/COLI Policies under any Novation Request shall be expanded if and as specified by the non-requesting Party upon written notice to the requesting Party within ten (10) Business Days of the non-requesting Partys receipt of the Novation Request (the Follow-On Request). The option to make a Novation Request may be exercised only once by each Party during such two-year period, and the option to make a Follow-On Request may be exercised only once by the non-requesting Party in connection with the other Partys Novation Request. The Reinsurer shall not have any obligation to novate any Specified BOLI/COLI Policy from the Ceding Company to the Reinsurer as may be specified in any Novation Request by the Ceding Company unless the Reinsurer receives prior approval from the Tennessee Department of Commerce and Insurance for the permitted practice specified on Schedule 3.12, provided, promptly following a Novation Request, the Reinsurer shall use its commercially reasonable efforts to obtain the permitted practice specified on Schedule 3.12 to the extent required pursuant to the foregoing.
(b) Following the Effective Time, if requested by either Party and subject to obtaining all applicable approvals from any applicable regulators and policyholders, the Parties shall cooperate and use their respective commercially reasonable efforts to renew or replace the Group Covered Insurance Policies (including individual certificates to the extent required) into or with policies issued by the Reinsurer or its Affiliates as replacements of such Group Covered Insurance Policies.
(c) Each Party shall promptly advise each other of any communications with respect to any such proposed novation or replacement insurance policies or certificates. All correspondence from either the Ceding Company or the Reinsurer to policyholders or certificateholders under any Specified BOLI/COLI Policy or Group Covered Insurance Policy, as applicable, in connection with any such proposed novation or renewal and replacement shall be in
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a form approved by the other Party; provided, that any such approval shall not be unreasonably withheld, conditioned or delayed. Following the receipt by the Ceding Company of all applicable regulatory approvals, as provided below, the Reinsurer shall effect any such action with respect to any such proposed novation or replacement insurance policy or certificate as is reasonably required to attempt to effectuate such novation or replacement, including sending correspondence requesting that a Specified BOLI/COLI Policy be novated to the Reinsurer or a designated Affiliate of the Reinsurer or that a Group Covered Insurance Policy (including individual certificates to the extent required) be renewed with a replacement insurance policy (including individual certificates to the extent required) issued by the Reinsurer or a designated Affiliate of the Reinsurer, in each case, in a form approved by the Reinsurer. The Ceding Company shall be responsible for obtaining all required regulatory approvals and consents for the novations contemplated by this Section 3.12 with respect to Specified BOLI/COLI Policies (other than with respect to the permitted practice specified on Schedule 3.12, which the Reinsurer shall be responsible for obtaining). The Reinsurer shall be responsible for obtaining all required policyholder and certificateholder consents for the novations and renewals and replacements contemplated by this Section 3.12. The requesting Party shall be responsible for its costs of the novations contemplated by this Section 3.12 with respect to Specified BOLI/COLI Policies and shall reimburse the other Partys reasonable out-of-pocket costs (together with a reasonable allocation of overhead for any dedicated employees or new hires for such purpose) with respect thereto (other than with respect to the costs of obtaining the permitted practice specified on Schedule 3.12, which shall be borne by the Reinsurer). The Reinsurer shall be responsible for its costs of the renewal and replacements contemplated by this Section 3.12 with respect to Group Covered Insurance Policies and shall reimburse the Ceding Companys reasonable out-of-pocket costs (together with a reasonable allocation of overhead for any dedicated employees or new hires for such purpose) with respect thereto. Any Specified BOLI/COLI Policy that is novated to the Reinsurer pursuant to this Section 3.12 and any Group Covered Insurance Policy that is replaced pursuant to this Section 3.12 (and the applicable terms of the Transition Services Agreement and the Administrative Services Agreement) shall cease to be a Covered Insurance Policy upon the effectiveness of such novation, or renewal and replacement, as applicable.
ARTICLE IV.
LICENSES; RESERVE CREDIT; SECURITY
Section 4.1 Licenses; Reserve Credit.
(a) At all times during the term of this Agreement, the Reinsurer shall, at its own expense, use commercially reasonable efforts to hold and maintain all licenses and authorizations required under Applicable Law and shall otherwise take all actions that may be reasonably necessary (including the posting of letters of credit or other acceptable security, in each case, so long as such security is posted in a trust that complies with the requirements of Colorado Insurance Code 10-3-703 (and its successor provision) or the applicable corresponding credit for reinsurance laws and regulations of the Ceding Company Domiciliary State) (i) so that the Ceding Company may receive Reserve Credit and (ii) to perform its obligations hereunder. The Reinsurer shall promptly notify the Ceding Company of any loss of, or impairment to, any such license or authorization or, to the knowledge of the Reinsurer, any other condition that would be reasonably likely to result or has resulted in a loss of Reserve Credit. Furthermore, upon any loss of Reserve Credit, the Ceding Company and the Reinsurer shall cooperate in good faith to promptly amend
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this Agreement or the Trust Agreement, or enter into other agreements or execute additional documents as reasonably needed to comply with the credit for reinsurance laws and regulations and/or the requirements of the applicable Governmental Body to ensure the Ceding Company obtains Reserve Credit.
(b) Notwithstanding anything contained in this Section 4.1 to the contrary, in the event that (i) there is a repeal of or amendment or other modification to the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub.L. 111-203, H.R. 4173) that would authorize a Governmental Body in any jurisdiction of the United States where the Ceding Company is licensed to transact business to apply the applicable rules for credit for reinsurance in such jurisdiction to the Ceding Company, and (ii) the Ceding Company reasonably determines that it is obligated under Applicable Law to comply with such rules in order to receive statutory financial statement credit in any such jurisdiction, then Section 4.1(a) shall automatically be deemed to be amended without any action by the parties to require that the Reinsurer shall take all steps necessary so as to enable the Ceding Company to obtain full and complete statutory financial statement credit for the reinsurance provided by this Agreement in any such jurisdiction in addition to, and to the same extent as, the Ceding Company Domiciliary State.
Section 4.2 Security.
(a) On or prior to the date hereof, the Reinsurer, as grantor, shall establish and thereafter shall maintain, at its sole cost and expense, the Trust Account with the Trustee, naming the Ceding Company as sole beneficiary thereof to secure and fund the Reinsurers obligations hereunder. The Reinsurer shall maintain the Trust Account in accordance with the terms of this Agreement and the Trust Agreement. The Trust Account will be initially funded (i) in accordance with Section 3.3(b) of the Master Transaction Agreement and Section 3.1(a) and (ii) by the pledge of Commercial Mortgage Loans to the Trustee in accordance with the terms of the Trust Agreement. On and after the occurrence and during the continuation of a Triggering Event, the Reinsurer may, at its own cost, provide one or more Qualifying LOCs in accordance with the terms of this Agreement.
(b) In accordance with the terms set forth herein and in the Trust Agreement, and subject to the provisions of Sections 4.6 and 4.8, the Reinsurer shall ensure that the Trust Account holds Eligible Assets and Commercial Mortgage Loans in accordance with the terms hereof with a Statutory Book Value which is at least equal to the Required Balance. All transfers to and withdrawals from the Trust Account shall be in accordance with and subject to the requirements set forth herein and in the Trust Agreement.
(c) The Reinsurer shall not, and shall direct that the Trustee shall not, grant or cause or permit to be created or granted in favor of any third person any security interest whatsoever in any of the assets in the Trust Account or in the residual interest therein.
(d) The Reinsurer shall use commercially reasonable efforts to complete the pledge to the Trustee of the Commercial Mortgage Loans set forth in Schedule A-2 of the Trust Agreement as soon as practicable and in any event within ninety (90) days after the date hereof.
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Section 4.3 Trust Account and Settlements. The Trustee shall hold assets in the Trust Account pursuant to the terms of the Trust Agreement. All settlements of account under this Agreement between the Ceding Company and the Reinsurer shall be made in United States dollars in cash or its equivalent or other assets withdrawn by the Ceding Company from the Trust Account.
Section 4.4 Eligible Assets. Subject to Section 4.6, the assets held in the Trust Account shall be valued at their Statutory Book Value as of the date as of which such assets are required to be valued. The assets that may be held in the Trust Account shall consist of cash and/or investments (including Commercial Mortgage Loans) consistent with the requirements for authorized investments and admitted assets in the Reinsurers state of domicile and that meet the requirements for the composition of collateral stipulated in NAIC Accounting Practices and Procedures Manual Appendix A-785, Credit for Reinsurance, as amended from time to time, including paragraph 18 thereof; provided, that (i) each such investment that is a security is issued by an institution that is not the Reinsurer, the Ceding Company or an Affiliate of either Party and (ii) such investments comply with the Investment Guidelines; provided, further, that following a Triggering Event, in addition to complying with the Investment Guidelines, such investments shall also meet all requirements under the Ceding Company Domiciliary State insurance law and regulations with respect to providing Reserve Credit to the Ceding Company, including, for the avoidance of doubt, any durational limits therein (the assets, other than Commercial Mortgage Loans pledged to the Trustee, meeting the requirements of this sentence being the Eligible Assets). The Parties agree that Eligible Assets shall be deposited into the Trust Account and that, prior to a Triggering Event, Commercial Mortgage Loans shall be pledged to the Trustee by the Reinsurer, in each case to be held by the Trustee in the Trust Account. From time to time, subject to Section 4.6, the Reinsurer may direct the Trustee to substitute assets held in the Trust Account; provided, that at the time of such substitution, the withdrawn assets are replaced with other Eligible Assets or Commercial Mortgage Loans having a Statutory Book Value at least equal to the Statutory Book Value of the assets withdrawn. The Trustee shall have no responsibility whatsoever to determine the value of such substituted assets or that such substituted assets constitute Eligible Assets or eligible Commercial Mortgage Loans.
Section 4.5 Deposit or Transfer of Trust Assets. Prior to depositing Eligible Assets in the Trust Account, the Reinsurer shall execute assignments or endorsements in blank, or transfer legal title to the Trustee of all shares, obligations or any other assets requiring assignments, in order that the Ceding Company, or the Trustee upon the direction of the Ceding Company, may when and as permitted by the Trust Agreement negotiate these assets without the consent or signature from the Reinsurer or, except as set forth in the Trust Agreement, any other Person. Prior to pledging Commercial Mortgage Loans to the Trustee, the Reinsurer shall comply with the requirements set forth in the Trust Agreement with respect thereto.
Section 4.6 Modifications Upon Occurrence of a Triggering Event. The Parties acknowledge and agree that, upon the occurrence and continuation of a Triggering Event, certain provisions of this Agreement and the Trust Agreement shall cease to be effective, and other provisions shall automatically be effective thereafter, as described herein and in the Trust Agreement. Provisions that will automatically become modified upon the occurrence and continuation of a Triggering Event are as follows: (a) the assets constituting Eligible Assets shall be modified as set forth in Section 4.4; (b) the valuation of Eligible Assets in the Trust Account under Section 4.2(b) and all other applicable sections of this Agreement (excluding, for the
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avoidance of doubt, Section 3.1(a)) shall be modified from Statutory Book Value to Fair Market Value; (c) the withdrawal and substitution by the Reinsurer of Eligible Assets in the Trust Account shall be modified to require the prior written consent of the Ceding Company; (d) if the Triggering Event is a Reserve Credit Event, Section 4.7(a) governing the withdrawal, use and application of assets in the Trust Account by the Ceding Company shall be replaced by Section 4.7(b); and (e) Section 4.8(a)(i) governing the adjustment of the security held in the Trust Account shall be replaced by Section 4.8(a)(ii). In addition, as soon as is practicable, but not more than ten (10) Business Days following the date on which the Reinsurer becomes aware of the occurrence of a Triggering Event (unless the Ceding Company shall agree to a longer period, then by the end of such longer period), the Reinsurer shall (i) substitute any assets held in the Trust Account that are not Eligible Assets for assets which are Eligible Assets, and (ii) deposit additional assets consisting of Eligible Assets and/or provide Qualifying LOCs in the Trust Account sufficient to ensure that the Triggering Event Collateralization Amount is not less than one hundred percent (100%) of the Required Balance as of the last day of the immediately prior calendar quarter end, computed taking into account the occurrence of a Triggering Event and in accordance with Section 4.8(a)(ii).
Section 4.7 Withdrawals of Assets from the Trust Account.
(a) Prior to a Reserve Credit Event.
(i) Prior to the occurrence of a Reserve Credit Event, the Ceding Company and the Reinsurer agree that the assets held in the Trust Account may be withdrawn by the Ceding Company (or any successor by operation of law of the Ceding Company including, without limitation, any liquidator, rehabilitator, receiver or conservator of the Ceding Company), without diminution because of any Insolvency on the part of the Ceding Company or the Reinsurer, (A) in the case of assets held in the Trust Account, in accordance with the terms of the Trust Agreement, and (B) in the case of Qualifying LOCs, at any time solely upon the Trustees presentation of a sight draft (without the need to present any other documentation of any kind to complete such draw), in order to (I) pay or reimburse the Ceding Company for any undisputed amounts due from the Reinsurer under this Agreement and not yet recovered from the Reinsurer, which amounts have not been paid by the Reinsurer within ten (10) days following receipt by the Reinsurer from the Ceding Company of specific written notice thereof or (II) reimburse the Reinsurer to the extent the Reinsurer fails to make the withdrawals when and in the amounts required pursuant to Section 4.7(a)(ii). The amount of any such withdrawal in excess of amounts then due to the Ceding Company hereunder shall be deemed maintained in trust for the benefit of the Reinsurer and promptly returned to the Trust Account.
(ii) Prior to the occurrence of a Reserve Credit Event, the Ceding Company and the Reinsurer agree that Eligible Assets and/or Commercial Mortgage Loans held in the Trust Account shall be withdrawn by the Reinsurer on a monthly basis in an amount equal to the Monthly Reimbursement Amount in order to reimburse the Reinsurer for amounts fronted by the Reinsurer in its capacity as Administrator to pay claims and benefit amounts with respect to the applicable month. Such amounts shall be withdrawn in accordance with the terms of the Trust Agreement and such assets shall be valued for the purpose of withdrawal at their Statutory Book Value prior to the occurrence of a
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Triggering Event and at Fair Market Value upon the occurrence and continuation of a Triggering Event.
(b) Following a Reserve Credit Event. Following the occurrence and continuance of a Reserve Credit Event, the Ceding Company and the Reinsurer agree that the assets maintained in the Trust Account may be withdrawn by the Ceding Company (or any successor by operation of law of the Ceding Company including, without limitation, any liquidator, rehabilitator, receiver or conservator of the Ceding Company), without diminution because of insolvency on the part of the Ceding Company or the Reinsurer (i) in the case of assets in the Trust Account, at any time without notice or consent from the Reinsurer, and (ii) in the case of Qualifying LOCs, at any time solely upon the Trustees presentation of a sight draft (without the need to present any other documentation of any kind to complete such draw), but only for one or more of the following purposes:
(i) to reimburse the Ceding Company for the Reinsurers share of premiums returned to the owners of the Covered Insurance Policies reinsured hereunder because of cancellations of the Covered Insurance Policies;
(ii) to reimburse the Ceding Company for the Reinsurers share of surrenders and benefits or losses (together with any other General Account Liabilities or amounts to be deposited in the Separate Accounts in accordance with the terms of the related Separate Account Policies) paid by the Ceding Company pursuant to the provisions of the Covered Insurance Policies reinsured hereunder;
(iii) to fund an account with the Ceding Company where the Ceding Company has received notification of termination of the Trust Account and where the Reinsurers entire obligations under this Agreement remain unliquidated and undischarged ten (10) days prior to the date of such termination in an amount equal to the Reinsurers share of General Account Liabilities hereunder (or the Required Balance, if higher), to the extent that such Liabilities have not yet been funded by the Reinsurer, and deposit those amounts in a separate account, in the name of the Ceding Company in any qualified U.S. financial institution apart from its general assets, in trust for the uses and purposes specified in Subparagraphs (i), (ii), (iv) and (v) of this subparagraph as may remain executory after such withdrawal and for any period after the date of such termination;
(iv) to reimburse the Reinsurer on a regular basis in an amount equal to the Monthly Reimbursement Amount for amounts fronted by the Reinsurer in its capacity as Administrator to pay claims and benefit amounts; or
(v) to pay any other amounts the Ceding Company claims are due hereunder.
(c) The Ceding Company shall return to the Trust Account within five (5) Business Days amounts withdrawn in excess of actual amounts required under Sections 4.7(b)(i), (ii), (iii) and (iv) or, in the case of Section 4.7(b)(v), amounts that are subsequently determined not to be due. Any such excess amount not returned shall at all times be held by the Ceding Company (or any successor by operation of law of the Ceding Company, including any liquidator,
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rehabilitator, receiver or conservator of the Ceding Company) in trust for the benefit of the Reinsurer and be maintained in a segregated account, separate and apart from any assets of the Ceding Company for the sole purpose of funding the payments and reimbursements described in Sections 4.7(b)(i), (ii), (iv) and (v). The Ceding Company shall pay interest in cash to the Reinsurer on the amount withdrawn under Section 4.7(b)(iii) equal to the actual amount of interest, dividends, and other income earned on the assets in such segregated account so long as the Fair Market Value of the assets in such segregated account and the Fair Market Value of any remaining assets in the Trust Account, together with the aggregate available amount under Qualifying LOCs (if any), after payment of such interest equals at least, in the aggregate, one hundred two percent (102%) of the Required Balance, and shall otherwise credit to such segregated account all such income earned on the assets in such segregated account. The Ceding Company may at any time substitute or exchange any assets held in such account at Fair Market Value and invest or reinvest such assets; provided, that the assets so substituted or exchanged and all reinvestment assets are Eligible Assets.
(d) Notwithstanding the foregoing, the Reinsurer agrees that if the Governmental Body charged with supervision of insurance companies in the Ceding Company Domiciliary State determines that the above process is not consistent with the Parties intended treatment under Applicable Law, the Reinsurer agrees to reasonably cooperate with the Ceding Company in revising such process; provided, that no such revision shall have an adverse economic impact on the Reinsurer.
Section 4.8 Adjustments of Security and Withdrawals.
(a) The amount of security required to be provided by the Reinsurer hereunder shall be adjusted following the end of each calendar quarter based on (x) the Required Balance as of the end of such calendar quarter calculated by the Reinsurer as Administrator and furnished to the Ceding Company in a report no later than thirty (30) days following the end of such calendar quarter (the Security Funding Reporting Date) and (y) the Statutory Book Value or the Fair Market Value, as applicable, of Eligible Assets and Commercial Mortgage Loans and the aggregate available amount under Qualifying LOCs (if any) as of the end of such calendar quarter (in each case, after giving effect to any amounts withdrawn from the Trust Account in accordance with Section 4.7(a)(ii) or Section 4.7(b)(iv) during such calendar quarter) as furnished by the Reinsurer to the Ceding Company in a report no later than the Security Funding Reporting Date. The amount of security held in the Trust Account shall be adjusted as follows:
(i) | Prior to a Triggering Event: |
(A) If the aggregate Statutory Book Value of the Eligible Assets and Commercial Mortgage Loans held in the Trust Account as of the end of such calendar quarter (after giving effect to any amounts withdrawn from the Trust Account in accordance with Section 4.7(a)(ii) or Section 4.7(b)(iv) during such calendar quarter) is less than the Required Balance, calculated based on the most recent report delivered by the Reinsurer under this Section 4.8, then the Reinsurer shall, no later than ten (10) Business Days following the Security Funding Reporting Date, transfer additional Eligible Assets and/or Commercial Mortgage Loans to the Trust Account so that the aggregate Statutory
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Book Value of the Eligible Assets and Commercial Mortgage Loans held in the Trust Account is not less than the Required Balance.
(B) If the aggregate Statutory Book Value of the Eligible Assets and Commercial Mortgage Loans in the Trust Account as of the end of such calendar quarter (after giving effect to any amounts withdrawn from the Trust Account in accordance with Section 4.7(a)(ii) or Section 4.7(b)(iv) during such calendar quarter) exceeds one hundred percent (100%) of the Required Balance, then the Reinsurer shall have the right to withdraw such excess amount in accordance with the terms of the Trust Agreement; provided that following such withdrawal and/or reduction, the aggregate Statutory Book Value of the Eligible Assets and Commercial Mortgage Loans held in the Trust Account shall not be less than one hundred percent (100%) of the Required Balance as of such calendar quarter end.
(ii) | Following a Triggering Event: |
(A) If the Triggering Event Collateralization Amount, as of the end of such calendar quarter (after giving effect to any amounts withdrawn from the Trust Account in accordance with Section 4.7(a)(ii) or Section 4.7(b)(iv) during such calendar quarter) is less than one hundred percent (100%) of the Required Balance, calculated based on the most recent report delivered by the Reinsurer under this Section 4.8, then the Reinsurer shall, no later than the earlier of ten (10) Business Days following the Security Funding Reporting Date and, if applicable with respect to the relevant calendar quarter in which the Reinsurer becomes aware of the occurrence of a Triggering Event, the date required by Section 4.6, transfer additional Eligible Assets and/or provide Qualifying LOCs in the Trust Account so that the Triggering Event Collateralization Amount is not less than one hundred percent (100%) of the applicable Required Balance.
(B) If the Triggering Event Collateralization Amount as of the end of such calendar quarter (after giving effect to any amounts withdrawn from the Trust Account in accordance with Section 4.7(a)(ii) or Section 4.7(b)(iv) during such calendar quarter) exceeds one hundred two percent (102%) of the Required Balance, then the Reinsurer shall have the right to withdraw from the Trust Account such excess or seek a reduction of the Qualifying LOC, in either case upon the prior written consent of the Ceding Company (which consent shall not be unreasonably withheld, delayed or conditioned); provided, that following such withdrawal or reduction, the Triggering Event Collateralization Amount shall not be less than one hundred two percent (102%) of the Required Balance as of such calendar quarter end.
(b) The report required to be delivered by the Reinsurer as described in Section 4.8(a) shall include a listing of each asset held in the Trust Account (after giving effect to any amounts withdrawn from the Trust Account in accordance with Section 4.7(a)(ii) or Section 4.7(b)(iv) during the relevant Accounting Period) and the Statutory Book Value and Fair Market Value of each such asset as of the end of the relevant Accounting Period and indicate whether any such asset is an Eligible Asset or an eligible Commercial Mortgage Loan, along with a listing of any Qualifying LOCs. In the event that the Ceding Company disagrees with the calculation of the Statutory Book Value or Fair Market Value of any Eligible Asset or Commercial
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Mortgage Loan or whether any asset is an Eligible Asset or an eligible Commercial Mortgage Loan as set forth in such report, the Ceding Company may deliver written notice to the Reinsurer of such disagreement within ten (10) Business Days after receipt thereof and the Parties shall attempt in good faith to resolve such disagreement. Any resolution agreed to in writing by the Parties shall be final and binding upon the Parties. If the Parties are unable to resolve any disagreement as to the calculation of the Statutory Book Value or Fair Market Value of any Eligible Asset or Commercial Mortgage Loan or whether any asset is an Eligible Asset or an eligible Commercial Mortgage Loan within ten (10) Business Days after the Ceding Company delivers written notice of any such disagreement to the Reinsurer, the Parties shall jointly request the Accounting Firm to determine the Statutory Book Value or Fair Market Value of the disputed Eligible Asset or Commercial Mortgage loan or whether the disputed asset is an Eligible Asset or eligible Commercial Mortgage Loan as of the relevant date. The Accounting Firms determination of the Statutory Book Value or Fair Market Value of the disputed Eligible Asset or Commercial Mortgage Loan or whether the disputed asset is an Eligible Asset or an eligible Commercial Mortgage Loan shall be final and binding upon the Parties. In the event the Accounting Firm concludes that the Reinsurer was correct as to sixty-five percent (65%) or more (by dollar amount) of the disputed items, then the Ceding Company shall pay the Accounting Firms fees, costs and expenses associated with the Accounting Firms determination. In the event the Accounting Firm concludes that the Ceding Company was correct as to sixty-five percent (65%) or more (by dollar amount) of the disputed items, then the Reinsurer shall pay the Accounting Firms fees, costs and expenses associated with the Accounting Firms determination. In the event the Accounting Firm fails to make either such conclusion, then each Party shall pay one-half of the Accounting Firms fees, costs and expenses associated with the Accounting Firms determination. After a final and binding resolution of any dispute described in this Section 4.8(b) is reached, the Parties agree to make any necessary adjustments under Section 4.8(a) so that (i) absent the occurrence of a Triggering Event, the aggregate Statutory Book Value of the Eligible Assets and Commercial Mortgage Loans held in the Trust Account is not less than one hundred percent (100%) of the Required Balance as of the then current calendar quarter end, or (ii) following the occurrence of a Triggering Event, the Triggering Event Collateralization Amount is not less than one hundred percent (100%) (if Assets are to be contributed to the Trust Account) or one hundred two percent (102%) of the Required Balance (if Assets are to be withdrawn from the Trust Account), as applicable.
(c) The Ceding Company and the Reinsurer agree to give notice to the Trustee of the termination of the Trust Agreement in accordance with the terms thereof promptly following the date on which the report required to be delivered by the Reinsurer as described in Section 4.8(a) (and, if applicable, the corresponding reports required to be delivered by the reinsurers under the Seller Reinsurance Agreements) demonstrates that the Required Balance is determined to be zero.
ARTICLE V.
OVERSIGHTS; COOPERATION; REGULATORY MATTERS
Section 5.1 Oversights. Unintentional or inadvertent delays, errors or omissions made in connection with this Agreement or any transaction hereunder (a) shall not relieve either Party from any Liability which would have attached had such delay, error or omission not occurred; and (b) both Parties shall be restored as closely as possible to the positions they would have occupied if no delay, error or omission had occurred; provided, that, in all cases, such error or omission is
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rectified as soon as reasonably practicable after discovery by the Party making such error or omission or responsible for such delay; provided, further, that said responsible Party shall be responsible for any additional Liability which attaches as a result.
Section 5.2 Cooperation. Each Party hereto shall cooperate fully with the other in all reasonable respects in order to accomplish the objectives of this Agreement.
Section 5.3 Regulatory Matters. Subject to the provisions of Article IX and solely to the extent not otherwise covered by the Administrative Services Agreement, if the Ceding Company or the Reinsurer receives notice of, or otherwise becomes aware of, any inquiry, investigation or proceeding from or at the direction of a Governmental Body relating to or affecting the Covered Insurance Policies that would reasonably be expected to have an adverse effect on the other Party, the Ceding Company or the Reinsurer, as applicable, shall promptly notify the other Party thereof, whereupon the Parties, at their own expense, shall cooperate in good faith and use their respective commercially reasonable efforts to resolve such matter in a mutually satisfactory manner, in light of all the relevant business, regulatory and legal facts and circumstances.
ARTICLE VI.
DAC TAX
Section 6.1 Election. The Ceding Company and the Reinsurer jointly agree to the deferred acquisition cost Tax election pursuant to Section 1.848-2(g)(8) of the Treasury Regulations issued under Section 848 of the Code, each as in effect as of the Effective Time. In accordance with, and in furtherance of, that election:
(a) The Party with the net positive consideration for this Agreement for each taxable year shall capitalize specified policy acquisition expenses with respect to this Agreement without regard to the general deductions limitation of Code Section 848(c)(1).
(b) Both Parties shall exchange information pertaining to the amount of net consideration under this Agreement each year to ensure consistency or as otherwise required by the Internal Revenue Service.
(c) Both Parties agree to make such election by timely attaching to their federal income Tax Returns the schedule contemplated by Treasury Regulation Section 1.848-2(g)(8)(ii).
Section 6.2 Definitions. As used in this Article VI, the terms net consideration, net positive consideration, specified policy acquisition expenses, and general deductions limitation are defined by reference to Treasury Regulation Section 1.848-2 and Code Section 848, in effect as of the Effective Time.
Section 6.3 Exchange of Information. The method and timing of the exchange of information contemplated by Section 6.1(b) shall be as follows:
(a) By May 1 of each year, the Reinsurer shall submit a schedule to the Ceding Company of the Reinsurers calculation of the net consideration for the preceding calendar year. Absent notice from the Ceding Company to the Reinsurer that financial information otherwise provided by the Reinsurer to the Ceding Company under this Agreement or other
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Ancillary Documents is inadequate for purposes of this Section, such information shall constitute such schedule.
(b) The Ceding Company may contest such calculation by providing an alternative calculation to the Reinsurer in writing within thirty (30) calendar days of the Ceding Companys receipt of the Reinsurers calculation. If the Ceding Company does not so notify the Reinsurer, the Ceding Company shall report the net consideration as determined by the Reinsurer.
(c) If the Ceding Company contests the Reinsurers calculation of the net consideration, the Parties shall act in good faith to reach an agreement as to the correct amount within thirty (30) calendar days of the date the Ceding Company submits its alternative calculation. If the Reinsurer and the Ceding Company do not reach agreement on the net consideration within such 30-day period, then the net consideration for such year shall be determined by an independent accounting firm acceptable to both the Reinsurer and the Ceding Company within twenty (20) calendar days after the expiration of such 30-day period.
(d) The Parties shall file their respective federal income Tax Returns for each taxable year in which consideration is transferred under this Agreement in accordance with the calculations determined under this Section 6.3.
Section 6.4 Effectiveness. The Tax election described in Section 6.1 shall first become effective for the taxable year that includes the Effective Time and shall remain in effect for all years for which this Agreement remains in effect.
Section 6.5 United States Tax Status Representation. Each of the Parties represents and warrants that it is subject to United States taxation under the provisions of Subchapter L of Chapter 1 of Subtitle A of the Code.
Section 6.6 Breach of Representation. Should either Party breach the representation and warranty of Tax status set forth in this Article VI, the breaching Party agrees to indemnify and hold the non-breaching Party, its directors, officers, employees, agents, and shareholders harmless from all Liability, loss, damages, fines, penalties, interest, and reasonable attorneys fees, which the non-breaching Party, its directors, officers, employees, agents, and shareholders may sustain by reason of such breach.
Section 6.7 DAC Tax Reimbursement. It is intended that the Ceding Company generally should not bear an economic cost relating to the federal income Tax treatment of the net consideration determined under Code Section 848 with regard to the New Insurance Policies. To achieve this result, the Parties will negotiate in good faith with respect to each year in which the Ceding Company suffers a Tax detriment as a result of the issuance of any New Insurance Policy or the fact that any New Insurance Policy remains in force, an annual reimbursement amount payable by the Reinsurer to the Ceding Company (the DAC Tax Reimbursement) that reflects the net Tax detriment suffered by the Ceding Company as a result thereof in such year. Such amount shall be remitted by the Reinsurer to the Ceding Company as soon as reasonably practicable following the completion of such negotiations. The Parties shall cooperate in good faith to determine a reimbursement methodology that minimizes administrative costs for both Parties and the need for ongoing calculations with respect to relevant Premiums on the New
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Insurance Policies. The amount of any Tax detriment shall be calculated without regard to Tax items or attributes of the Ceding Company unrelated to the New Insurance Policies, including any net negative consideration under Code Section 848 unrelated to the New Insurance Policies. Any dispute between the Parties with regard to the proper amount of the DAC Tax Reimbursement will be resolved by an independent accounting firm mutually acceptable to the Parties.
ARTICLE VII.
INSOLVENCY
Section 7.1 Insolvency of the Ceding Company.
(a) In the event of the insolvency of the Ceding Company, all reinsurance made, ceded, renewed or otherwise becoming effective under this Agreement shall be payable by the Reinsurer directly to the contractholders, insureds or the beneficiaries entitled to receive payment under the Covered Insurance Policies, as applicable (a Payee) on the basis of the Liability of the Ceding Company under the Covered Insurance Policies, as applicable, without diminution because of the insolvency of the Ceding Company. It is understood, however, that in the event of the insolvency of the Ceding Company, the liquidator, receiver or statutory successor of the Ceding Company shall give written notice of the pendency of a claim against the Ceding Company on a Covered Insurance Policy within a reasonable period of time after such claim is filed in the insolvency proceedings and that during the pendency of such claim the Reinsurer may investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated, any defense or defenses which it may deem available to the Ceding Company or its liquidator, receiver or statutory successor. It is further understood that the expense thus incurred by the Reinsurer shall be chargeable, subject to Applicable Law, against the Ceding Company as part of the expense of liquidation to the extent of a proportionate share of the benefit which may accrue to the Ceding Company solely as a result of the defense undertaken by the Reinsurer.
(b) Any payment by the Reinsurer directly to a Payee pursuant to this Section 7.1 shall be, to the extent of the payment, in substitution, satisfaction and discharge of the Reinsurers obligations to the Ceding Company, or to its liquidator, rehabilitator, receiver, conservator or statutory successor, under this Agreement. Neither this Article VII, nor any other provision of this Agreement or any other Transaction Agreement nor any Covered Insurance Policies, shall be construed in a manner which would subject the Reinsurer to liability for duplicative payments of the Reinsured Liabilities reinsured under this Agreement.
(c) In the event that the laws of the Ceding Company Domiciliary State should be amended to or otherwise require that reinsurance made, ceded, or renewed hereunder shall be payable in all events directly to the Ceding Company or its statutory liquidator, receiver or statutory successor (the Domiciliary Receiver) in order to avoid liability for duplicate payment by the Reinsurer, all amounts payable hereunder with respect to the Ceding Company (including to any Payees thereof) shall be payable directly to the Ceding Company or the Domiciliary Receiver on the basis of the liability of such Ceding Company, without diminution because of such insolvency or because such Domiciliary Receiver has failed to pay all or a portion of any claims, and the direct liability of the Reinsurer to any Payee as described in this Agreement shall no longer be applicable.
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ARTICLE VIII.
DURATION; RECAPTURE
Section 8.1 Duration. This Agreement shall continue in force until such time as (a) the Ceding Companys Liability arising out of or related to all Covered Insurance Policies reinsured hereunder is terminated in accordance with their respective terms, (b) the Ceding Company has elected to recapture the reinsurance of the Covered Insurance Policies in full in accordance with Section 8.3(a) and the Terminal Settlement has been completed in accordance with Section 8.4 or (c) the Reinsurer has elected to terminate this Agreement in accordance with Section 8.3(b) and the Terminal Settlement has been completed in accordance with Section 8.4.
Section 8.2 Survival. Notwithstanding the other provisions of this Article VIII, the terms and conditions of Articles I, VI, IX and X shall remain in full force and effect after the termination or recapture of this Agreement.
Section 8.3 Recapture; Termination.
(a) Upon the occurrence and continuation of a Recapture Triggering Event, the Ceding Company shall have the right (but not the obligation) to recapture all, and not less than all, of the reinsurance ceded under this Agreement, by providing the Reinsurer with written notice of its intent to effect recapture. Recapture of the Covered Insurance Policies shall be effective on the date specified in such notice (the Recapture Date); provided, that the Recapture Date shall be at least ten (10) calendar days but no more than six (6) months following the date of such notice.
(b) Upon the occurrence and continuation of a Termination Event, the Reinsurer shall have the right (but not the obligation) to terminate this Agreement by providing the Ceding Company with written notice of its intent to terminate. Termination of this Agreement shall be effective on the date specified in such notice (the Termination Date). Upon a termination by the Reinsurer, the Ceding Company shall recapture all the reinsurance ceded under this Agreement. Recapture of the Covered Insurance Policies shall be effective on the Termination Date.
(c) Following a recapture or termination pursuant to this Section 8.3, subject to the payment obligations described in Section 8.4, both the Ceding Company and the Reinsurer will be fully and finally released from all rights and obligations under this Agreement in respect of the Covered Insurance Policies, other than any payment obligations due hereunder prior to the Recapture Date or Termination Date but still unpaid on such date, any Liability of the Reinsurer for Reinsurer Extra-Contractual Obligations and any obligations with respect to the provisions that expressly survive the termination or recapture of this Agreement. Following the consummation of the recapture or termination, (i) no additional Premiums or other amounts payable under such Covered Insurance Policies shall be payable to the Reinsurer hereunder, (ii) the Reinsurer shall have no further right to receive any Recoveries, and (iii) the Reinsurer shall have no further obligation to pay any Reinsured Liabilities or other amounts hereunder, in each case, except for obligations under the provisions that expressly survive termination as provided in Section 8.2. Upon a recapture or termination pursuant to this Section 8.3, the Recoveries shall be automatically re-sold, re-assigned, re-transferred and re-delivered to the Ceding Company, effective as of the Recapture Date or Termination Date, as applicable, and all of the Reinsurers right, title and
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interest in the Recoveries (and any lockbox or other account set up for the receipt of the Recoveries after the Effective Time) and the security interest granted pursuant to Section 3.1(d) shall be automatically released, in each case without the need for any action on the part of the Parties.
(d) Notwithstanding the remedies contemplated by this Article VIII, Article IV or elsewhere in this Agreement or the Transaction Agreements, the Ceding Company may, in its sole discretion, require direct payment by the Reinsurer of any sum in default under this Agreement or any Transaction Agreement in lieu of exercising the remedies in this Article VIII, and it shall be no defense to any such claim that the Ceding Company might have had other recourse.
Section 8.4 Recapture Payments. In connection with a recapture or termination pursuant to Section 8.3, the Reinsurer shall prepare a settlement statement within fifteen (15) calendar days of the Recapture Date or Termination Date, as applicable (the Terminal Settlement Statement), setting forth the terminal settlement calculated in accordance with Exhibit C hereto for the Terminal Accounting Period (the Terminal Settlement). If the amount of the Terminal Settlement for the Terminal Accounting Period is positive, the Ceding Company shall pay such amount to the Reinsurer within five (5) Business Days of its receipt of the Terminal Settlement Statement. If the amount of the Terminal Settlement for the Terminal Accounting Period is negative, the Reinsurer shall pay the absolute value of such amount to the Ceding Company at the time it delivers the Terminal Settlement Statement to the Ceding Company. In connection with such recapture or termination, if the Reinsurer fails to pay the full amount of the absolute value of the Terminal Settlement at the time it delivers the Terminal Settlement Statement to the Ceding Company, the Ceding Company may withdraw assets in the Trust Account to satisfy the remaining obligations of the Reinsurer therefor to the extent of such assets, with the Reinsurer remaining liable to the Ceding Company for any excess over the value of the assets so withdrawn. In addition, following the Recapture Date or Termination Date, as applicable, the Trust Account shall be terminated and any remaining amounts in trust pursuant to Section 4.2 shall be released to the Reinsurer after the full satisfaction of the Terminal Settlement pursuant to the Terminal Settlement Statement.
ARTICLE IX.
INDEMNIFICATION; DISCLAIMER
Section 9.1 Reinsurers Obligation to Indemnify. The Reinsurer hereby agrees to indemnify, defend and hold harmless the Ceding Company and its Affiliates and their respective officers, directors, stockholders, employees, Representatives, successors and assigns (collectively, the Ceding Company Indemnified Parties) from and against any and all Losses imposed on, sustained, incurred or suffered by the Ceding Company Indemnified Parties to the extent resulting from, arising out of or relating to (whether or not arising from a Third-Party Claim) (i) any breach by the Reinsurer of the covenants and agreements of the Reinsurer contained in this Agreement or (ii) the Reinsured Liabilities (including, for the avoidance of doubt, any Reinsurer Extra-Contractual Obligations).
Section 9.2 Ceding Companys Obligation to Indemnify. The Ceding Company hereby agrees to indemnify, defend and hold harmless the Reinsurer and its Affiliates and their respective officers, directors, stockholders, employees, Representatives, successors and assigns (collectively, the Reinsurer Indemnified Parties) from and against any and all Losses imposed
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on, sustained, incurred or suffered by the Reinsurer Indemnified Parties to the extent resulting from, arising out of or relating to (whether or not arising from a Third-Party Claim) (i) any breach by the Ceding Company of the covenants and agreements of the Ceding Company contained in this Agreement or (ii) any Ceding Company Extra-Contractual Obligations.
Section 9.3 Notice of Claim; Defense.
(a) If (i) any non-affiliated third party or Governmental Body institutes, threatens or asserts any Action that may give rise to Losses for which a Party (an Indemnifying Party) may be liable for indemnification under this Article IX (a Third-Party Claim) or (ii) any Person entitled to indemnification under this Agreement (an Indemnified Party) shall have a claim to be indemnified by an Indemnifying Party that does not involve a Third-Party Claim, then the Indemnified Party shall promptly send to the Indemnifying Party a written notice specifying the nature of such claim and a good faith estimate of the amount of all related Losses (a Claim Notice). The failure of an Indemnified Party to give a timely and adequate Claim Notice shall not relieve the Indemnifying Party of its obligations under this Article IX except to the extent that the Indemnifying Party is actually prejudiced by such failure.
(b) The Indemnifying Party may, by notice delivered within twenty (20) Business Days after the receipt of a Claim Notice with respect to a Third-Party Claim, assume the defense and control of such Third-Party Claim (at the expense of such Indemnifying Party). The Indemnifying Party shall not be entitled to assume or maintain control of the defense of any Third-Party Claim and shall pay the reasonable fees and expenses of counsel retained by the Indemnified Party if (i) the Third-Party Claim relates to or arises in connection with any criminal or insurance enforcement proceeding, action, indictment, allegation or investigation against the Indemnified Party or (ii) the Third-Party Claim would reasonably be expected to result in an injunction or equitable relief against the Indemnified Party that would, in each case, have a material effect on the operation of the business of such Indemnified Party or any of its Affiliates.
(c) Subject to Section 9.3(b), in the event of a Third-Party Claim, if the Indemnifying Party assumes the defense of a Third-Party Claim, the Indemnifying Party may elect to retain counsel reasonably acceptable to the Indemnified Parties to represent such Indemnified Parties in connection with such Action and shall pay the fees, charges and disbursements of such counsel. Subject to Section 9.3(b), if the Indemnifying Party so elects, the Indemnified Parties may participate, at their own expense and through legal counsel of their choice, in any such Action; provided that (i) the Indemnifying Party shall control the defense of the Indemnified Parties in connection with such Action and (ii) the Indemnified Parties and their counsel shall reasonably cooperate with the Indemnifying Party and its counsel in connection with such Action. The Indemnifying Party shall not settle any such Action without the relevant Indemnified Parties prior written consent, unless the terms of such settlement (A) provide for no relief other than the payment of monetary damages, (B) involve no finding or admission of any breach or violation by any Indemnified Party and (C) include an express unconditional release of each Indemnified Party from all Liability arising from such Action. Notwithstanding the foregoing, if the Indemnifying Party elects not to retain counsel and assume control of such defense, then the Indemnified Parties shall retain counsel reasonably acceptable to the Indemnifying Party in connection with such Action and assume control of the defense in connection with such Action, and the fees, charges and disbursements of no more than one such counsel per jurisdiction selected by the Indemnified
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Parties shall be reimbursed by the Indemnifying Party. Under no circumstances will the Indemnifying Party have any liability in connection with any settlement of any Action that is entered into without its prior written consent (which shall not be unreasonably withheld, conditioned or delayed).
(d) From and after the delivery of a Claim Notice involving a Third-Party Claim, at the reasonable request of the Indemnifying Party, each Indemnified Party shall grant the Indemnifying Party and its counsel, experts and Representatives full access, during normal business hours, to the books, records, personnel and properties of such Indemnified Party to the extent reasonably related to such Claim Notice at no cost to the Indemnifying Party (other than for reasonable out-of-pocket expenses of the Indemnified Parties), subject to any bona fide claims of attorney-client privilege.
(e) In the event any Indemnifying Party receives a Claim Notice from an Indemnified Party that does not involve a Third-Party Claim, the Indemnifying Party shall notify the Indemnified Party within sixty (60) Business Days following its receipt of such notice whether the Indemnifying Party disputes its liability to the Indemnified Party under this Article IX; provided that the failure of an Indemnifying Party to give such notice shall not affect such Indemnifying Partys obligations under this Article IX except to the extent that the Indemnified Party is prejudiced by such failure to give such notice.
Section 9.4 No Duplication; Exclusive Remedy.
(a) To the extent that a Reinsurer Indemnified Party or a Ceding Company Indemnified Party has received payment in respect of a Loss pursuant to the provisions of any Transaction Agreement, such Reinsurer Indemnified Party or Ceding Company Indemnified Party shall not be entitled to indemnification for such Loss under this Agreement to the extent of such payment. Notwithstanding anything to the contrary herein, any indemnification with respect to Product Tax Non-Compliance or Buyer Product Tax Non-Compliance shall be solely as provided in Section 12.6 of the Master Transaction Agreement.
(b) Except as otherwise provided under this Agreement or the provisions of any Transaction Agreement, from and after the Closing Date, the exclusive remedy of the Reinsurer, the Reinsurer Indemnified Parties, the Ceding Company and the Ceding Company Indemnified Parties in connection with this Agreement (and any certificate or instrument delivered hereunder) and the transactions contemplated hereby (whether under this Agreement or arising under Applicable Law) shall be as provided in this Article IX.
Section 9.5 Mitigation. The Reinsurer and the Ceding Company shall cooperate with each other with respect to resolving any claim or liability with respect to which one Party is obligated to indemnify the other Party under this Article IX, including by making commercially reasonable efforts to mitigate such claim or liability to the extent required by Applicable Law.
Section 9.6 Recovery by Indemnified Party. In any case where an Indemnified Party recovers from a third party not Affiliated with such Indemnified Party any amount in respect of any Loss for which an Indemnifying Party has actually reimbursed it pursuant to this Article IX (but only to the extent that such Person would otherwise retain an amount greater than the full
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amount of the Losses sustained by such Indemnified Party as a result of the underlying claim), such Indemnified Party shall promptly pay over to the Indemnifying Party the amount so recovered (net of any out-of-pocket expenses incurred by such Indemnified Party in collecting such amount), but not in excess of the sum of (i) any amount previously paid by the Indemnifying Party to or on behalf of the Indemnified Party in respect of such claim and (ii) any amount expended by the Indemnifying Party in pursuing or defending any claim arising out of such matter.
Section 9.7 Waiver of Duty of Utmost Good Faith. In recognition that each Party has consummated the transactions contemplated by this Agreement and the Transaction Agreements to which it is a party, based on mutually negotiated representations, warranties, covenants, remedies and other terms and conditions as are fully set forth herein and therein, the Ceding Company and the Reinsurer absolutely and irrevocably waive resort to the duty of utmost good faith or any similar principle in connection with the formation or performance of this Agreement.
ARTICLE X.
MISCELLANEOUS
Section 10.1 Notices. All notices, requests, consents, claims, demands and other communications under this Agreement shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service, by electronic mail (followed by delivery of an original via overnight courier service) or by registered or certified mail (postage prepaid, return receipt requested) to the respective Parties at the following respective addresses (or at such other address for a party hereto as shall be specified in a notice given in accordance with this Section 10.1):
(a) If to the Ceding Company, to:
Great-West Life & Annuity Insurance Company
8515 East Orchard Road
Greenwood Village, Colorado 80111
Attention: Chief Financial Officer
with a copy to (which shall not constitute notice):
Eversheds Sutherland (US) LLP
1114 Avenue of the Americas, 40th Floor
New York, New York 10036
Attention: Bert Adams
E-Mail: BertAdams@eversheds-sutherland.us
(b) If to the Reinsurer, to:
c/o Protective Life Insurance Company
2801 Highway 280 South
Birmingham, Alabama 35223
Attention: General Counsel
Email: mark.drew@protective.com
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with a copy to (which shall not constitute notice):
Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, New York 10019
Attention: Alexander M. Dye; Donald B. Henderson, Jr.
Email: adye@willkie.com; dhenderson@willkie.com
Section 10.2 Entire Agreement; Amendments. This Agreement, together with the Exhibits and Schedules referred to herein, the Master Transaction Agreement, the Administrative Services Agreement, the Transition Services Agreement, the Trust Agreement and the other documents delivered pursuant hereto and thereto, constitute the entire agreement between the Parties with respect to the subject matter hereof and supersede all prior representations, warranties, negotiations, discussions, writings, agreements, understandings and letters of intent between them with respect thereto, none of which shall have any further force and effect for any purpose. This Agreement may not be amended, modified or supplemented except by a written instrument signed by an authorized representative of each of the Parties or their respective successors in interest.
Section 10.3 Governing Law and Jurisdiction. This Agreement shall be governed in all respects, including validity, interpretation and effect, by the laws of the Ceding Company Domiciliary State, without regard to principles of conflicts of law thereof that would result in the application of the laws of a different jurisdiction. Except as contemplated in the definition of Unamortized Portion of the Ceding Commission and Section 4.8(b), each of the Parties agree that any and all Actions relating to, arising out of or in connection with this Agreement or its subject matter and the rights and obligations arising hereunder, or for recognition and enforcement of any settlement or judgment in respect of this Agreement and the rights and obligations arising hereunder brought by the other Party or its successors or assigns, shall be brought and determined exclusively in the courts of the State of New York located in the Borough of Manhattan, the City of New York or in the courts of the United States of America for the Southern District of New York. Each of the Parties agrees that mailing of process or other papers in connection with any such Action in the manner provided in Section 10.1, or in such other manner as may be permitted by Applicable Laws, will be valid and sufficient service thereof. Each of the Parties hereby irrevocably submits with regard to any such Action for itself and in respect of its property, generally and unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will not bring any Action relating to this Agreement or any of the transactions contemplated by this Agreement in any court or tribunal other than the aforesaid courts. Each of the Parties hereby irrevocably waives, and agrees not to assert, by way of motion, as a defense, counterclaim or otherwise, in any Action with respect to this Agreement and the rights and obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder (a) any claim that it is not personally subject to the jurisdiction of the above named courts for any reason other than the failure to serve process in accordance with this Agreement, (b) any claim that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (c) to the fullest extent permitted by Applicable Law, any claim that (i) the Action in such court is brought in an inconvenient forum, (ii) the venue of such Action is improper or (iii) this Agreement, or the subject matter hereof, may not be
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enforced in or by such courts. In order to facilitate the comprehensive resolution of related disputes, and upon request of any Party to any Action, the court may consolidate the Action with any other Action relating to this Agreement, the Master Transaction Agreement or any other Ancillary Agreement and the Parties hereby agree not to oppose any request by the other Party to consolidate any such Action with another Action relating to this Agreement, the Master Transaction Agreement or any other Ancillary Agreement.
Section 10.4 No Third Party Beneficiaries. Except as otherwise expressly set forth in any provision of this Agreement, including with respect to the Ceding Company Indemnified Parties and the Reinsurer Indemnified Parties, nothing in this Agreement, expressed or implied, is intended or shall be construed to confer upon any Person, other than the Parties and their respective successors and permitted assigns, any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision contained herein.
Section 10.5 Expenses. Except as otherwise provided herein, the Parties shall each bear their respective expenses incurred in connection with the negotiation, preparation, execution, and performance of this Agreement and the transactions contemplated hereby, including all fees and expenses of counsel, actuaries and other Representatives.
Section 10.6 Counterparts. This Agreement may be executed by the Parties in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument. Each counterpart may consist of a number of copies hereof each signed by less than all, but together signed by all of the Parties. Each counterpart may be delivered by electronic mail transmission, which transmission shall be deemed delivery of an originally executed document.
Section 10.7 Severability. Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is so broad as to be unenforceable, that provision shall be interpreted to be only so broad as is enforceable.
Section 10.8 Waiver of Jury Trial; Multiplied and Punitive Damages. EACH PARTY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT, AND WHETHER MADE BY CLAIM, COUNTERCLAIM, THIRD PERSON CLAIM OR OTHERWISE. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 10.8. EACH PARTY ALSO IRREVOCABLY WAIVES ANY RIGHT TO PUNITIVE, INCIDENTAL, CONSEQUENTIAL OR MULTIPLIED DAMAGES, EITHER
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PURSUANT TO COMMON LAW OR STATUTE, IN EACH CASE IN ANY LEGAL PROCEEDINGS ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (BUT NOT AS TO ANY ACTION BY ONE PARTY AGAINST THE OTHER SEEKING INDEMNIFICATION FOR A THIRD-PARTY CLAIM AGAINST THE PARTY INITIATING THE ACTION, TO THE EXTENT THAT SUCH DAMAGES MAY BE RECOVERABLE AS PART OF THE INDEMNIFICATION BY THE INDEMNIFIED PARTY).
Section 10.9 Treatment of Confidential Information.
(a) The Parties agree that, other than as contemplated by this Agreement or any Transaction Agreement and to the extent permitted or required to implement the transactions contemplated by this Agreement and the Transaction Agreements, the Parties will keep confidential and will not use or disclose the other Partys Confidential Information and the terms and conditions of this Agreement, including the Exhibits and Schedules hereto, except (x) as otherwise required by Applicable Law or any order or ruling of any state insurance regulatory authority or any other Governmental Body, (y) as may be required to be disclosed in the financial statements of such Party or any of its Affiliates or (z) such disclosure as may be required in connection with any dispute resolution proceeding between the Parties in respect hereof.
(b) The confidentiality obligations contained in this Agreement shall not apply to the federal Tax structure or federal Tax treatment of this Agreement and each Party hereto may disclose to any and all persons, without limitation of any kind, the federal Tax structure and federal Tax treatment of this Agreement; provided, that such disclosure may not be made until the earliest of (x) the date of the public announcement of discussions relating to this Agreement, (y) the date of the public announcement of this Agreement, or (z) the date of the execution of this Agreement. The preceding sentence is intended to cause this Agreement to be treated as not having been offered under conditions of confidentiality for purposes of Section 1.6011-4(b)(3) (or any successor provision) of the Treasury Regulations promulgated under Section 6011 of the Code, and shall be construed in a manner consistent with such purpose. Subject to the provision with respect to disclosure in the first sentence of this Section 10.9(b), each Party hereto acknowledges that it has no proprietary or exclusive rights to the federal Tax structure of this Agreement or any federal Tax matter or federal Tax idea related to this Agreement.
Section 10.10 Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns. Except as provided below in this Section 10.10, neither Party may assign any of its rights, duties or obligations hereunder without the prior written consent of the other Party and any attempted assignment in violation of this provision shall be invalid ab initio; provided, that this Agreement shall inure to the benefit and bind those who, by operation of law, become successors to the Parties, including any receiver or any successor, merged or consolidated entity.
Section 10.11 Waivers. Any term or provision of this Agreement may be waived, or the time for its performance may be extended, in writing at any time by the Party or Parties entitled to the benefit thereof. Any such waiver shall be validly and sufficiently authorized for the purposes of this Agreement if, as to any Party, it is authorized in writing by an authorized representative of such Party. The failure of any Party hereto to enforce at any time any provision of this Agreement
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shall not be construed to be a waiver of such provision, nor in any way to affect the validity of this Agreement or any part hereof or the right of any Party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held to constitute a waiver of any preceding or subsequent breach.
Section 10.12 Specific Performance. The Parties agree that irreparable harm for which damages will not provide a full and effective remedy will result if any of the provisions of this Agreement are not performed in accordance with their specific terms or are otherwise breached and that, in addition to any legal remedies the Parties may have, equitable remedies including but not limited to prohibitory injunction, mandatory injunction, preliminary injunction, emergency injunction, restraining order and specific performance shall be appropriate relief in enforcing these provisions and maintaining this Agreement in full force and effect. The Parties expressly waive the defense that a remedy in damages alone will be adequate or that equitable remedies, including injunction and specific performance, are not appropriate for any reason at law or equity. The Parties further agree that (a) by seeking the remedies provided for in this Section 10.12, a Party shall not in any respect waive its right to seek any other form of relief that may be available to such Party under this Agreement, including monetary damages in the event that this Agreement has been terminated or in the event that the remedies provided for in this Section 10.12 are not available or otherwise are not granted and (b) nothing contained in this Section 10.12 shall require any Party to institute any action for (or limit any partys right to institute any action for) specific performance under this Section 10.12 before exercising any termination or recapture right under Article VIII nor shall the commencement of any action pursuant to this Section 10.12 or anything contained in this Section 10.12 restrict or limit any Partys right to terminate or recapture this Agreement in accordance with the terms of Article VIII or pursue any other remedies under this Agreement that may be available then or thereafter.
Section 10.13 Interpretation. The table of contents, articles, titles, captions and headings to sections herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. The Schedules and Exhibits referred to herein shall be construed with and as an integral part of this Agreement to the same extent as if they were set forth verbatim herein. All references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement. Whenever the words include, includes or including are used in this Agreement, they are deemed to be followed by the words without limitation. Unless the context otherwise requires, the words hereof, herein and hereunder and words of similar import when used in this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement. All terms defined in this Agreement have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein. The definitions in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine genders of such term. Any agreement or instrument defined or referred to herein or any agreement or instrument that is referred to herein means such agreement or instrument as from time to time amended, modified or supplemented, including by waiver or consent and references to all attachments thereto and instruments incorporated therein. Any statute or regulation referred to herein means such statute or regulation as amended, modified, supplemented or replaced from time to time (and, in the case of statutes, includes any rules and regulations promulgated under the statute), and references to any section of any statute or regulation include any successor to the section. Any agreement referred to herein
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include reference to all Exhibits, Schedules and other documents or agreements attached thereto. The phrase related to the Business shall not have the meaning attributed to Related to the Business (as defined in the Master Transaction Agreement).
[Remainder of Page Intentionally Left Blank Signature Page Follows]
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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the day and year first above written.
GREAT-WEST LIFE & ANNUITY |
INSURANCE COMPANY |
By: |
Name: |
Title: |
PROTECTIVE LIFE INSURANCE COMPANY |
By: |
Name: |
Title: |
Signature Page to Reinsurance Agreement (GWLA)
SCHEDULE 1.1(A)
Covered Insurance Policies
See Excel spreadsheets titled:
● | GWLA Covered Insurance Policies by System 5.31.19 |
● | GWLA - ADA - Inforce Member Certs |
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42115819.1
SCHEDULE 1.1(C)
Non-Guaranteed Elements Policy
See attached.
42115819.1
SCHEDULE 1.1(D)
Recapture Triggering Event
The Reinsurers RBC Ratio as of any quarter-end is below 175% and the Reinsurer has not cured such shortfall within thirty (30) days following the applicable RBC Reporting Deadline.
42115819.1
SCHEDULE 1.1(E)
Separate Accounts
Separate Accounts of Great-West Life & Annuity Insurance Company |
Variable Annuity-1 Series Account |
Variable Annuity-2 Series Account |
Maxim Series Account |
Trillium Variable Annuity Account |
Pinnacle Series Account |
Prestige Variable Life Account |
Index Linked Annuity Series Account GWLA |
COLI VUL-1 Series Account of Great-West Life & Annuity Insurance Company |
COLI VUL-2 Series Account of Great-West Life & Annuity Insurance Company |
COLI VUL-3 Series Account of Great-West List & Annuity Insurance Company (Huntington) |
COLI VUL-4 Series Account of Great-West Life & Annuity Insurance Company |
COLI VUL-5 Series Account of Great-West Life & Annuity Insurance Company (US Bancorp) |
COLI VUL-6 Series Account of Great-West Life & Annuity Insurance Company |
COLI VUL-7 Series Account of Great-West Life & Annuity Insurance Company |
COLI VUL-8 Series Account of Great-West Life & Annuity Insurance Company (American Express II) |
COLI VUL-9 Series Account of Great-West Life & Annuity Insurance Company (The Bank of New York) |
COLI VUL-10 Series Account of Great-West Life & Annuity Insurance Company |
COLI VUL-10 Series Account of Great-West Life & Annuity Insurance Company (comingled) |
COLI VUL-11 Series Account of Great-West Life & Annuity Insurance Company (BB&T) |
COLI VUL-12 Series Account of Great-West Life & Annuity Insurance Company |
COLI VUL-13 Series Account of Great-West Life & Annuity Insurance Company |
COLI VUL-14 Series Account of Great-West Life & Annuity Insurance Company |
COLI Managed Investment Division II (WAMCO) |
COLI Managed Investment Division IV (GWCM) |
COLI Managed Investment Division V (Goldman) |
COLI Managed Investment Division VI (PIMCO) |
42115819.1
|
ATTORNEYS AT LAW
1025 Thomas Jefferson Street, NW | Suite 400 West Washington, DC 20007-5208 202.965.8100 | fax 202.965.8104 www.carltonfields.com
Atlanta Hartford Los Angeles Miami New York Orlando Tallahassee Tampa Washington, DC West Palm Beach | |
Exhibit (n)(1) |
December 23, 2019
Great-West Life & Annuity Insurance Company
8515 East Orchard Road
Greenwood Village, Colorado 80111
Re: | COLI VUL-2 Series Account |
Post-Effective Amendment No. 38 to Registration Statement on Form N-6
File Nos. 333-70963 and 811-09201
Ladies and Gentlemen:
We have acted as counsel to Great-West Life & Annuity Insurance Company, a Colorado corporation, regarding the federal securities laws applicable to the issuance and sale of the policies described in the above-referenced registration statement. We hereby consent to the reference to our name under the caption Legal Matters in the prospectus filed as part of the above-referenced registration statement. In giving this consent, we do not admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act of 1933.
Very truly yours, |
/s/ Carlton Fields, P.A. |
Carlton Fields, P.A. |
Carlton Fields, P.A.
Carlton Fields, P.A. practices law in California through Carlton Fields, LLP.
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the use in this Post-Effective Amendment No. 38 to Registration Statement No. 333-70963 of the COLI VUL-2 Series Account of Great-West Life & Annuity Insurance Company (the Company) on Form N-6 of our report dated April 8, 2019 on the financial statements and financial highlights of each of the investment divisions of the COLI VUL-2 Series Account of the Company and of our report dated March 19, 2019 on the statutory financial statements of the Company, appearing in the Statement of Additional Information, which is part of such Registration Statement.
We also consent to the references to us as experts under the heading Independent Registered Public Accounting Firm in the Prospectus and in the Statement of Additional Information, which are part of such Registration Statement.
/s/ DELOITTE & TOUCHE LLP
Denver, Colorado
December 26, 2019