485BPOS 1 d162692d485bpos.htm COLI VUL-2 OF GWLA 485BPOS COLI VUL-2 of GWLA 485BPOS
As filed with the Securities and Exchange Commission on May 10, 2021
Registration Nos. 333-70963; 811-09201
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-6
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Pre-Effective Amendment No. ( )
Post-Effective Amendment No. 40  (X)
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 33 (X)
COLI VUL-2 SERIES ACCOUNT
(Exact Name of Registrant)
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
(Name of Depositor)
8515 E. Orchard Road
Greenwood Village, Colorado 80111
(Address of Depositor’s Principal Executive Office)
(303) 737-3000
(Depositor’s Telephone Number)
Edmund F. Murphy III
President & Chief Executive Officer
Great-West Life & Annuity Insurance Company
8515 E. Orchard Road
Greenwood Village, Colorado 80111
(Name and Address of Agent for Service)
Copy to:
Ann B. Furman, Esq.
Carlton Fields, P.A.
1025 Thomas Jefferson Street, N.W., Suite 400 West
Washington, D.C. 20007-5208
Approximate date of proposed public offering: Continuous
It is proposed that this filing will become effective (check appropriate box) 
 
immediately upon filing pursuant to paragraph (b) of Rule 485
x
on May 10, 2021, 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
If appropriate, check the following box: 
 
this post-effective amendment designates a new effective date for a previously filed post-
effective amendment.
Title of Securities Being Registered: flexible premium variable universal life insurance policies.

Great-West Life & Annuity Insurance Company
A Stock Company
8515 E. Orchard Road
Greenwood Village, Colorado 80111
Telephone: (303) 737-3000
Executive Benefit VUL II  —  Prospectus
A Flexible Premium Variable Universal Life Insurance Policy
offered by Great-West Life & Annuity Insurance Company in
connection with its COLI VUL-2 Series Account
Internet Delivery of Shareholder Reports: As permitted by regulations adopted by the Securities and Exchange Commission (“SEC”), paper copies of the Fund's annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website ( https://www.greatwestinvestments.com ), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from your financial intermediary electronically by contacting your financial intermediary.
You may elect to receive all future reports in paper free of charge. You can call (866) 345-5954 or make elections online at https://www.fundreports.com to let your financial intermediary know you wish to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account.
This prospectus describes Executive Benefit VUL II, a flexible premium variable universal life insurance policy (the “Policy”) offered by Great-West Life & Annuity Insurance Company (“Great-West,” “Company,” “we,” “our” or “us”).
The Policy is designed for use by corporations and employers to provide life insurance coverage in connection with, among other things, deferred compensation plans and employer-financed insurance purchase arrangements. The Policy is designed to meet the definition of a “life insurance contract” for federal income tax purposes.
The Policy allows “you,” the Owner, within certain limits to:
•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.
This prospectus contains important information you should understand before purchasing a Policy, including a description of the material rights and obligations under the Policy. We use certain special terms that are defined in Appendix A. Your Policy and any endorsements are the formal contractual agreement between you and the Company. It is important that you read the Policy and endorsements which reflect other variations. You should keep this prospectus on file for future reference.
The Policy that we are currently issuing became available on May 1, 2011. Policies issued before May 1, 2011 are described in a separate prospectus.
The Securities and Exchange Commission has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
The date of this prospectus is May 10, 2021
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TABLE OF CONTENTS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ii
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
iii
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A-1
iv
Summary of the Policy and its Benefits
This is a summary of some of the most important features of your Policy. The Policy is more fully described in the remainder of this prospectus. Please read this prospectus carefully. Unless otherwise indicated, the description of the Policy in this prospectus assumes that the Policy is in force, there is no Policy Debt and current federal tax laws apply.
1. Corporate-Owned Variable Life Insurance. We will issue Policies to corporations and employers and to certain individuals to provide life insurance coverage in connection with, among other things, deferred compensation plans and employer-financed insurance purchase arrangements. We will issue Policies on the lives of prospective Insureds who meet our underwriting standards.
2. The Series Account. We have established a separate account to fund the variable benefits under the Policy. The assets of the Series Account are insulated from the claims of our general creditors.
3. Premium Payments. You must pay us an Initial Premium to put your Policy in force. The minimum Initial Premium will vary based on various factors, including the age of the Insured and the death benefits option you select, but may not be less than $100.00. Thereafter, you choose the amount and timing of Premium payments, within certain limits.
4. Fixed Account. You may allocate some or all of your net payments and/or make Transfers from the Sub-Accounts to the Fixed Account. The Fixed Account is part of our General Account. We own the assets in the General Account, and we use these assets to support our insurance and annuity obligations other than those funded by our separate accounts. These Fixed Account assets are subject to our general liabilities from business operations. Subject to applicable law, we have sole discretion over investment of the Fixed Account assets. We bear the full investment risk for all amounts allocated or transferred to the Fixed Account. The Policy gives the Company the right to impose limits on the amount each Owner can invest in the Fixed Account and such limits are subject to change at the sole discretion of the Company.
We guarantee that the amounts allocated to the Fixed Account will be credited interest at a net effective annual interest rate of at least the minimum interest rate indicated in your Policy. At our discretion, we will review the interest rate at least once a year. We may reset the interest rate monthly. The Fixed Account is not affected by the investment performance of the Sub-Accounts. Policy value in the Fixed Account will be reduced by the Policy fees and charges we deduct and the effects of any Policy transactions (loans, withdrawals, and Transfers) on your Policy value in the Fixed Account.
5. Free Look Period. You may return your Policy to us for any reason within ten days of receiving it, or such longer period as required by applicable state law (30 days for replacement policies), and depending on state law, receive (i) your Policy Value (less surrenders, withdrawals and distributions), or (ii) the greater of your Premiums, less any withdrawals, or your Policy Value. The money you contribute to the Policy will be invested at your direction, except that in some states during your free look period your Premiums will be allocated to the Great-West Government Money Market Division.
6. Investment Options and Funds. You may allocate your net Premium payments among the available investment divisions (“Divisions”) or the Fixed Account.
Each Division invests exclusively in shares of a single Fund. Each Fund has its own distinct investment objective and policies, which are described in the accompanying prospectuses for the Funds.
You may Transfer amounts from one Division to another or the Fixed Account, subject to the restrictions described herein.
7. Death Benefit. You may choose from among two death benefit options –
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.
For each option, the death benefit may be greater if necessary to satisfy federal tax law requirements.
We will deduct any outstanding Policy Debt and unpaid Policy charges before we pay a death benefit. In addition, prior partial withdrawals may reduce the Death Benefit Proceeds under the first option.
At any time, you may increase or decrease the Total Face Amount, subject to our approval and other requirements set forth in the Policy.
1
After the first Policy Year, you may change your death benefit option once each Policy Year.
8. Account Value. Your Account Value will reflect -
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.
9. Accessing Your Account Value. You may borrow from us using your Account Value as collateral. Loans may be treated as taxable income if your Policy is a “modified endowment contract” (“MEC”) for federal income tax purposes and you have had positive net investment performance.
There are no surrender charges associated with your Policy. You may surrender your Policy for its Cash Surrender Value plus return of expense charge, if applicable. The return of expense charge is a percentage of your Account Value and is described in greater detail in “Charges and Deductions” below.
You may withdraw a portion of your Account Value at any time while your Policy is in force.
A withdrawal may reduce your death benefit.
We will charge an administrative fee not greater than $25 per withdrawal on partial withdrawals after the first in a Policy Year.
10. Supplemental Benefits. The following optional riders are available –
1.
 term life insurance; and
2.
 change of Insured (not available to individual Owners).
We will deduct the cost, if any, of the rider(s) from your Account Value on a monthly basis.
11. Paid-Up Life Insurance. If the Insured reaches Attained Age 121 and your Policy is in force, the Account Value, less Policy Debt, will be applied as a single Premium to purchase “paid-up” insurance. “Paid-up” insurance is a policy where all premiums have been paid and there are no additional premiums due. Your Account Value will remain in the Series Account allocated to the Divisions or the Fixed Account in accordance with your instructions. The death benefit under this paid-up insurance will be fixed by the Internal Revenue Code of 1986, as amended (“Code”) for Insureds age 99. As your Account Value changes based on the investment experience of the Divisions, the death benefit will increase or decrease accordingly.
12. Reinstatement. If your Policy terminates due to insufficient value, we will reinstate it within three years at your Request, subject to certain conditions.
13. Surrenders. You may surrender your Policy for its Cash Surrender Value at any time while the Insured is living. If you do, the insurance coverage and all other benefits under the Policy will terminate.
If you withdraw part of the Cash Surrender Value, your Policy’s death benefit may be reduced and you may incur taxes and tax penalties.
14. Partial Withdrawal. You may Request a partial withdrawal of Account Value at any time while the Policy is in force. The amount of any partial withdrawal must be at least $500 and may not exceed 90% of your Account Value less the value of the Loan Account.
The Death Benefit Proceeds and your Account Value will be reduced by the amount of any partial withdrawals.
15. Policy Loans. You may borrow from us using your Account Value as collateral. You may Request a Policy loan of up to 90% of your Account Value, decreased by the amount of any outstanding Policy Debt on the date the Policy loan is made.
The minimum Policy loan amount is $500.
2
16. Changes in Total Face Amount. You may increase or decrease the Total Face Amount of your Policy at any time. Each increase or decrease in the Total Face Amount must be at least $25,000. Minimum face amount is $100,000.
17. Target Premium. Your target Premium is actuarially determined and will depend on the initial Total Face Amount of your Policy, your Issue Age, your sex (except in unisex states), and rating class (if any) and equals the maximum Premium payable such that the Policy remains compliant with the Code. The target Premium is used to determine your expense charged applied to the Premium and the sales compensation we pay. Payment of the target premium does not guarantee that your Policy will not lapse, and you may need to pay additional Premiums to keep your Policy in force. Each increase to the Total Face Amount is considered to be a new segment to the Policy. Each segment will have a separate target Premium associated with it.
18. State Variations. Policies issued in your state may provide different features and benefits from, and impose different costs than, those described in this prospectus because of state law variations. These differences include, among other things, free look rights, issue age limitations, and the general availability of riders. This prospectus describes the material rights and obligations of an Owner, and the maximum fees and charges for all Policy features and benefits are set forth in the fee table of this prospectus. See your Policy for specific variations because any such state variations will be included in your Policy or in riders or endorsements attached to your Policy. See your agent or contact us for specific information that is applicable to your state.
Policy Risks
1. Account Value Not Guaranteed. Your Account Value is not guaranteed. Your Account Value fluctuates based on the performance of the investment options you select. The investment options you select may not perform to your expectations. Your Account Value may also be affected by charges under your Policy.
2. Not Suitable as Short-Term Savings Vehicle. The Policy is designed for long-term financial planning. Accordingly, you should not purchase the Policy if you need access to the Account Value within a short time. Before purchasing a Policy, consider whether the long-term nature of the Policy is consistent with the purposes for which it is being considered.
3. Risk of Policy Lapse. Your Policy may terminate if your Account Value at the beginning of any Policy Month is insufficient to pay the Policy’s monthly charges.
If your Policy would terminate due to insufficient value, we will send you notice and allow you a 61-day grace period.
If, within the grace period, you do not make a Premium payment sufficient to cover all accrued and unpaid charges and deductions, your Policy will terminate at the end of the grace period without further notice.
4. Limitations on Withdrawals. Partial withdrawals of Account Value are permitted at any time the Policy is in force. As noted above, the amount of any partial withdrawal must be at least $500 and may not exceed 90% of your Account Value less the value of the Loan Account. A maximum administrative fee of $25 will be deducted from your Account Value for all partial withdrawals after the first made in the same Policy Year. Please note that withdrawals reduce your Account Value and your Death Benefit Proceeds. In addition, withdrawals may have tax consequences.
5. Limitations on Transfers. Subject to our rules as they may exist from time to time, you may at any time Transfer to another Division all or a portion of the Account Value allocated to a Division. In addition, we do not intend to enforce the restrictions on Transfers set forth in your Policy except in cases of identified market timing unless the Sub-Account has additional restrictions that are noted in the respective Fund’s prospectus. See “Market Timing & Excessive Trading” below. Certain limitations apply to Transfers into and out of the Fixed Account. See “Fixed Account Transfers” below. In addition, we do not intend to enforce the restrictions on Transfers set forth in your Policy except in cases of identified market timing unless the Sub-Account has additional restrictions that are noted in the respective Fund’s prospectus. See “Market Timing & Excessive Trading” below.
6. Limitations or Charges on Surrender of Policy. You may surrender your Policy for its Cash Surrender Value at any time while the Insured is living. Upon surrender of your Policy, the insurance coverage and all other benefits under the Policy will terminate.
There are no surrender charges associated with your Policy. However, the surrender of your Policy may have tax consequences.
7. Risks of Taking a Policy Loan. As noted above, you may Request a Policy loan of up to 90% of your Account Value, decreased by the amount of any outstanding Policy Debt on the date the Policy loan is made. The minimum Policy loan amount is $500.
3
Taking a Policy loan may increase the risk that your Policy will lapse, will reduce your Account Value, and may reduce the death benefit. In addition, if your Policy is a MEC for tax purposes, taking a Policy loan may have tax consequences.
8. Adverse Tax Consequences. Your Policy is structured to meet the definition of a life insurance contract under the Code. Current federal tax law generally excludes all death benefits from the gross income of the Beneficiary of a life insurance policy. Generally, you are not taxed on any increase in the Account Value until it is withdrawn, but are taxed on surrender proceeds and the proceeds of any partial withdrawals if those amounts, when added to all previous non-taxable distributions, exceed the total Premium paid. Amounts received upon surrender or withdrawals in excess of Premiums are treated as ordinary income.
Under certain circumstances, a Policy may become a MEC for federal tax purposes. This may occur if you reduce the Total Face Amount of your Policy or pay excessive Premiums. We will monitor your Premium payments and other Policy transactions and notify you if a payment or other transaction might cause your Policy to become a MEC without your written permission. We will not invest any Premium or portion of a Premium that would cause your Policy to become a MEC, but instead will promptly refund the money to you. If you elect to have a MEC contract, you can return the money to us with a signed form of acceptance.
Under current tax law, Death Benefit Proceeds under MECs generally are excluded from the gross income of the Beneficiary. Withdrawals and Policy loans, however, are treated first as income, to the extent of any gain, and then as a return of Premium. The income portion of the distribution is includable in your taxable income and taxed at ordinary income tax rates. A 10% penalty tax is also generally imposed on the taxable portion of any amount received before age 59 1∕2.
9. General Account Risk. Great-West’s general obligations and any guaranteed benefits under the Policy are supported by our General Account (and not by the Series Account) and are subject to Great-West’s claims-paying ability. An Owner should look to the financial strength of Great-West for its claims-paying ability. Assets in the General Account are not segregated for the exclusive benefit of any particular Policy or obligation. General Account assets are also available to Great-West’s general creditors and the conduct of our routine business activities, such as the payment of salaries, rent and other ordinary business expenses. For more information about Great-West’s financial strength, you may review our financial statements and/or check our current rating with one or more of the independent sources that rate insurance companies for their financial strength and stability. Such ratings are subject to change and have no bearing on the performance of the Funds.
Fund Risks
The Policy currently offers several variable investment options, each of which is a Division of the Series Account. Each Division uses its assets to purchase, at their net asset value, shares of a Fund. The Divisions are referred to as “variable” because their investment experience depends upon the investment experience of the Funds in which they invest.
We do not guarantee that the Funds will meet their investment objectives. Your Account Value may increase or decrease in value depending on the investment performance of the Funds. You bear the risk that those Funds may not meet their investment objectives. A comprehensive discussion of the risks of each Fund may be found in each Fund’s prospectus, including detailed information concerning investment objectives, strategies, and their investment risk. You may obtain a copy of the Fund prospectuses without charge by contacting us at 888-353-2654. If you received a summary prospectus for a Fund, please follow the directions on the first page of the summary prospectus to obtain a copy of the Fund’s prospectus.
4
Fee Tables
The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the Policy. The first table describes the fees and expenses that you will pay at the time that you buy the Policy, surrender the Policy, or Transfer cash value between investment options.
Transaction Fees 
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.
The next table describes the fees and expenses that you will pay periodically during the time that you own the Policy, not
including Fund fees and expenses.
5
Periodic Charges Other Than Fund Operating Expenses 
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.
6
 
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.
The next table shows the minimum and maximum total operating expenses charged by the Funds that you may pay periodically during the time that you own the Policy. More detail concerning each Fund’s fee and expenses is contained in the prospectus for each Fund.
Total Annual Fund Operating Expenses4
(Expenses that are deducted from Fund assets, including management fees,
distribution and/or service (12b-1) fees, and other expenses) 
 
Minimum
Maximum
Total Annual Fund Operating
0.10%
2.45%
THE ABOVE EXPENSES FOR THE FUNDS WERE PROVIDED BY THE FUNDS. WE HAVE NOT INDEPENDENTLY VERIFIED THE ACCURACY OF THE INFORMATION.
3. The Change of Insured Rider will vary based on individual characteristics. The charge 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 by contacting our Service Center at 888-353-2654.
4. Expenses are shown as a percentage of a Fund’s average net assets as of December 31, 2020. The expenses above include fees and expenses incurred indirectly by the Great-West Profile Funds and the Great-West Lifetime Funds as a result of investing in shares of acquired funds, if any. The range of expenses above does not show the effect of any fee waiver or expense reimbursement arrangements. The advisers and/or other service providers of certain Funds have agreed to waive their fees and/or reimburse the Funds’ expenses in order to keep the expenses below specified limits. In some cases, these expense limitations may be contractual. In other cases, these expense limitations are voluntary and may be terminated at any time. Please see the prospectus for each Fund for information regarding the expenses for each Fund, including fee reduction and/or expense reimbursement arrangements, if applicable. The management fees and other expenses of the Funds are more fully described in the Fund prospectuses.
7
Description of Depositor, Registrant, and Funds
Great-West Life & Annuity Insurance Company
Great-West is a stock life insurance company organized under the laws of the state of Colorado. Our offices are located at 8515 East Orchard Road, Greenwood Village, Colorado 80111.
We are authorized to do business in 49 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands and Guam. We issue individual and group life insurance policies and annuity contracts and accident and health insurance policies.
Great-West is a direct wholly-owned subsidiary of GWL&A Financial Inc. (“GWL&A Financial”), a Delaware 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. Lifeco operates in the United States primarily through the Company and through Putnam Investments, LLC (“Putnam”), and in Canada and Europe through The Canada Life Assurance Company (“CLAC”) and Irish Life Group Limited and their respective subsidiaries. Lifeco is a subsidiary of Power Financial Corporation (“Power Financial”), a Canadian holding company with substantial interests in the financial services industry. Power Corporation of Canada (“Power Corporation”), a Canadian holding and management company, has voting control of Power Financial. The Desmarais Family Residuary Trust, through a group of private holding companies that it controls, has voting control of Power Corporation.
The shares of Lifeco and Power Corporation are traded publicly in Canada on the Toronto Stock Exchange.
On June 3, 2019, Great-West entered into an indemnity reinsurance agreement (the “Agreement”) with Protective Life Insurance Company (“Protective”) to indemnify and reinsure the obligations of Great-West under substantially all of its non-participating individual life insurance and annuity business and group life and health business, including this Policy.
Under the Agreement, as of October 5, 2020, Protective will provide administration and customer service for this Policy in accordance with its terms and contidions. Great-West will continue its present role as the issuer of your Policy and will remain responsible for the administration and customer service of the Policy. All of your rights and benefits under your Policy and Great-West’s obligations under the Policy remain unchanged.
The Series Account
The Series Account is a segregated asset account of Great-West. We use the Series Account to fund benefits payable under the Policy. The Series Account may also be used to fund benefits payable under other life insurance policies issued by us.
We own the assets of the Series Account, which we hold separate and apart from our General Account assets. The income, gains or losses, realized or unrealized, from assets allocated to the Series Account are credited to or charged against the Series Account without regard to our other income, gains or losses. The income, gains, and losses credited to, or charged against, the Series Account reflect the Series Account’s own investment experience and not the investment experience of Great-West’s other assets. The assets of the Series Account may not be used to pay any liabilities of Great-West other than those arising from the Policies (and any other life insurance policies issued by us and funded by the Series Account).
In calculating our corporate income tax liability, we derive certain corporate income tax benefits associated with the investment of company assets, including Series Account assets that are treated as company assets under applicable income tax law. These benefits, which reduce our overall corporate income tax liability may include dividends received deductions and foreign tax credits which can be material. We do not pass these benefits through to the Series Account or our other separate accounts, principally because: (i) the great bulk of the benefits results from the dividends received deduction, which involves no reduction in the dollar amount of dividends that the Series Account receives; and (ii) under applicable income tax law, Owners are not the owners of the assets generating the benefits.
Great-West is obligated to pay all amounts promised to Owners under the Policies (and any other life insurance policies issued by us and funded by the Series Account).
We will at all times maintain assets in the Series Account with a total market value at least equal to the reserves and other liabilities relating to the variable benefits under all policies participating in the Series Account.
8
The Series Account is divided into Divisions. Each Division invests exclusively in shares of a corresponding Fund. We may in the future add new or delete existing Divisions. The income, gains or losses, realized or unrealized, from assets allocated to each Division are credited to or charged against that Division without regard to the other income, gains or losses of the other Divisions.
All amounts allocated to a Division will be used to purchase shares of the corresponding Fund. The Divisions will at all times be fully invested in Fund shares. We maintain records of all purchases and redemptions of shares of the Funds.
The Investment Options and Funds
The Policy offers a number of Divisions or Sub-Accounts. Each Division invests in a single Fund. Each Fund is a mutual fund registered under the Investment Company Act of 1940, as amended (the “1940 Act”), or a separate series of shares of such a mutual fund. More comprehensive information, including a discussion of potential risks, is found in the current prospectuses for the Funds. The fund prospectuses should be read in connection with this prospectus. YOU MAY OBTAIN A PROSPECTUS AND, IF AVAILABLE, A FUND SUMMARY, CONTAINING COMPLETE INFORMATION ON EACH FUND, WITHOUT CHARGE, UPON REQUEST BY CONTACTING US AT 888-353-2654. If you received a summary prospectus for a Fund, please follow the directions on the first page of the summary prospectus to obtain a copy of the Fund’s prospectus.
Each Fund holds its assets separate from the assets of the other Funds, and each Fund has its own distinct investment objective and policies. Each Fund operates as a separate investment fund, and the income, gains and losses of one Fund generally have no effect on the investment performance of any other Fund.
The Funds are NOT available to the general public directly. The Funds are available as investment options in variable life insurance policies or variable annuity contracts issued by life insurance companies or, in some cases, through participation in certain qualified pension or retirement plans.
Some of the Funds have been established by investment advisers that manage publicly available mutual funds having similar names and investment objectives. While some of the Funds may be similar to, and may in fact be modeled after publicly available mutual funds, the Funds are not otherwise directly related to any publicly available mutual fund. Consequently, the investment performance of publicly available mutual funds and any similarly named Fund may differ substantially.
Payments We Receive. Some of the Funds’ investment advisers or affiliates may compensate us for providing the administrative, recordkeeping and reporting services they would normally be required to provide for individual shareholders or cost savings experienced by the investment advisers or affiliates of the Funds. Such compensation is typically a percentage of Series Account assets invested in the relevant Fund and generally may range up to 0.35% of net assets. Prior to October 5, 2020, GWFS Equities, Inc. (“GWFS”), a broker-dealer and subsidiary of Great-West served as the principal underwriter and distributor of the Policy. After October 5, 2020, the principal underwriter and distributor of the Policy is Investment Distributors, Inc. (“IDI”), a subsidiary of Protective Life Corporation (“PLC”), the parent of Protective. IDI is a Tennessee corporation and was established in 1993.
GWFS and IDI may receive 12b-1 fees (ranging up to 0.25%) directly from certain Funds for providing distribution related servies related to shares of Funds offered in connection with a Rule 12b-1 plan. If GWFS or IDI, as the case may be, receives 12b-1 fees, combined compensation for administrative and distribution related services generally ranges up to 0.60% annually of Series Account assets invested in a Fund.
Such payments and fees create an incentive for us to offer portfolios (or classes of shares of portfolios) for which such payments and fees are available to us. We consider such payments and fees, among other things, when deciding to include a portfolio (or class or share of a portfolio) as an investment option under the Policy. Other available investment portfolios (or other available classes of shares of the portfolios) may have lower fees and better overall investment performance than the portfolios (or classes of shares of the portfolios) offered under the Policy.
If you purchased the Policy through a broker-dealer or other financial intermediary (such as a bank), the Funds and their related companies may pay the intermediary for services provided with regard to the sale of Fund shares to the Divisions under the Policy. The amount and/or structure of the compensation can possibly create a conflict of interest as it may influence the broker-dealer or other intermediary and your salesperson to present this Policy (and certain Divisions under the Policy) over other investment alternatives. The variations in compensation, however, may also reflect differences in sales effort or ongoing customer services expected of the broker-dealer or other intermediary or your salesperson. You may ask your salesperson about variations and how he or she and his or her broker-dealer are compensated for selling the Policy or visit your financial intermediary’s Web site for more information.
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Payments We Make. In addition to the direct cash compensation described above for sales of the Policies, IDI agents may receive additional cash and non-cash incentives to promote the sale of the Policies. IDI agents may participate in various contests and promotions subject to applicable FINRA regulations in which IDI agents may receive prizes such as travel awards, merchandise and cash. Subject to applicable FINRA regulations, IDI agents also may receive travel expenses, meals, lodging and entertainment of salespersons in connection with educational and sales promotional programs and sponsor speakers, educational seminars and charitable events.
Cash incentive payments may vary depending on the arrangement in place at any particular time. Cash incentives payable to IDI agents may be based on certain performance measurements, including a percentage of the net amount invested in certain Funds available under the Policy. These additional payments could be viewed as creating conflicts of interest. In some cases, the payment of incentive-based compensation may create a financial incentive for an IDI agent to recommend or sell the Policy instead of other products or recommend certain Funds under the Policy over other Funds, which may not necessarily be to your benefit.
Closed Divisions. Effective May 1, 2013, the Division investing in the Invesco V.I. Health Care Fund (Series I Shares) was closed to new Owners. However, Owners with amounts transferred in to aforementioned Division as of May 1, 2013, may continue to allocate Premium payments and Transfer amounts into and out of such Division.
Effective May 1, 2014, the Division investing in the Columbia Variable Portfolio – Small Cap Value Fund (Class 1 Shares) was closed to new Owners. However, Owners with amounts transferred in to aforementioned Division as of May 1, 2014, may continue to allocate Premium payments and Transfer amounts into and out of such Division.
Effective May 1, 2015, the Division investing in the VanEck VIP Emerging Markets Fund (Initial Class Shares) was closed to new Owners. However, Owners with amounts transferred in to aforementioned Division as of May 1, 2015, may continue to allocate Premium payments and Transfer amounts into and out of such Division.
Effective May 1, 2016, the Divisions investing in the Alger Small Cap Growth Portfolio (Class I-2 Shares); Davis Value Portfolio; Invesco V.I. Mid Cap Core Equity Fund (Series I Shares); Janus Henderson Overseas Portfolio (Institutional Shares); and Royce Capital Fund Small-Cap Portfolio (Service Class Shares) were closed to new Owners. However, Owners with amounts invested in these Funds as of May 1, 2016 may continue to allocate Premium payments and Transfer amounts into and out of these Divisions.
Effective May 1, 2017, the Divisions investing in the DWS Small Mid Cap Value VIP (Class A Shares); Goldman Sachs VIT Mid Cap Value Fund (Institutional Shares); and Lord Abbett Series Fund Developing Growth Portfolio (Class VC Shares) were closed to new Owners. However, Owners with amounts invested in these Funds as of May 1, 2017 may continue to allocate Premium payments and Transfer amounts into and out of these Divisions.
Effective May 1, 2019, the Divisions investing in the Fidelity® Variable Insurance Products Contrafund® Portfolio (Service Class 2 Shares); Goldman Sachs Multi-Strategy Alternatives Portfolio (Service Shares); and Putnam VT Emerging Markets Equity Fund (Class IA Shares) were closed to new Owners. However, Owners with amounts invested in these Funds as of May 1, 2017 may continue to allocate Premium payments and Transfer amounts into and out of these Divisions.
Effective October 25, 2019, the Division investing in the Great-West Large Cap Value Fund (Investor II Class Shares) was closed to new Owners. Investor II Class shares are only available to former Investor Class and Class L shareholders of the Great-West T. Rowe Price Equity Income Fund which merged into the Fund. Owners with amounts invested in these Funds as of October 25, 2019 may continue to allocate Premium payments and Transfer amounts into and out of such Division.
Effective May 1, 2021, the Divisions investing in the American Century Investments VP Inflation Protection Fund (Class II Shares); Fidelity VIP Mid Cap Portfolio (Service Class 2 Shares); Great-West Global Bond Fund (Investor Class Shares); Neuberger Berman AMT Mid Cap Intrinsic Value Portfolio (Class I Shares); and VanEck VIP Global Hard Assets Fund (Initial Class Shares) were closed to new owners. However, Owners with amounts invested in these Funds as of May 1, 2021 may continue to allocate Premium payments and Transfer amounts into and out of these Divisions.
Fund Investment Objectives. The investment objectives of the Funds are briefly described below:
AIM Variable Insurance Funds (Invesco Variable Insurance Funds) - advised by Invesco Advisers, Inc.
Invesco V.I. Global Real Estate Fund (Series I Shares) - seeks total return through growth of capital and current income. Invesco Asset Management Ltd is the sub-adviser to this Fund.
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Invesco V.I. Health Care Fund (Series I Shares)* - seeks long-term growth of capital.
Invesco V.I. International Growth Fund (Series I Shares) - seeks long-term growth of capital.
Invesco V.I. Main Street Mid Cap Fund (formerly Invesco V.I. Mid Cap Core Equity Fund (Series I Shares))* - seeks long-term growth of capital.
Invesco V.I. Main Street Small Cap Fund® (formerly Invesco Oppenheimer V.I. Main Street Small Cap Fund®) (Series I Shares) - seeks capital appreciation.
Alger Portfolios – advised by Fred Alger Management, Inc.
Alger Small Cap Growth Portfolio (Class I-2 Shares)* - seeks long-term capital appreciation.
American Century Variable Portfolios, Inc. – advised by American Century Investment Management, Inc.
American Century Investments® VP Capital Appreciation Fund (Class I Shares) - seeks capital growth.
American Century Investments® VP Mid Cap Value Fund (Class I Shares) - seeks long-term capital growth; income is a secondary consideration.
American Century Investments® VP Ultra Fund (Class I Shares) - seeks long-term capital growth.
American Century Investments® VP Value Fund (Class I Shares) - seeks long-term capital growth; income is a secondary consideration.
American Century Variable Portfolios II, Inc. – advised by American Century Investment Management, Inc.
American Century Investments® VP Inflation Protection Fund (Class II Shares)* - seeks long-term total return using a strategy that seeks to protect against U.S. inflation.
American Funds Insurance Series® - advised by Capital Research and Management Company
American Funds IS Global Small Capitalization Fund (Class 2 Shares) - seeks long-term growth of capital.
American Funds IS Growth Fund (Class 2 Shares) - seeks growth of capital.
American Funds IS Growth-Income Fund (Class 2 Shares) - seeks to achieve long-term growth of capital and income.
American Funds IS International Fund (Class 2 Shares) - seeks to provide investors with long-term growth of capital.
American Funds IS New World Fund® (Class 2 Shares) - seeks long-term capital appreciation.
Blackrock Variable Series Funds, Inc. - advised by BlackRock Advisors, LLC
BlackRock 60/40 Target Allocation ETF V.I. Fund (Class I Shares) - seeks to track the investment results of an index composed of global equities in the technology sector.
BlackRock Global Allocation V.I. Fund (Class I Shares) - seeks high total investment return.
BlackRock High Yield V.I. Fund (Class I Shares) - seeks to maximize total return, consistent with income generation and prudent investment management. BlackRock International Limited is the sub-adviser to this Fund.
BNY Mellon Stock Index Fund, Inc. - advised by BNY Mellon Investment Adviser, Inc.
BNY Mellon Stock Index Fund (Initial Shares) - seeks to match the total return of the Standard & Poor's® 500 Composite Stock Price Index (S&P 500® Index). Mellon Investments Corporation is the sub-adviser to this Fund.
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Columbia Funds Variable Insurance Trust - advised by Columbia Management Investment Advisers, LLC
Columbia Variable Portfolio - Small Cap Value (Class 1 Shares)* - seeks long-term capital appreciation.
Davis Variable Account Fund, Inc. - advised by Davis Selected Advisors, L.P.
Davis Financial Portfolio - seeks long-term growth of capital. Davis Selected Advisers-NY, Inc. is the sub-adviser to this Fund.
Davis Value Portfolio* - seeks long-term growth of capital. Davis Selected Advisers-NY, Inc. is the sub-adviser to this Fund.
Delaware VIP® Trust – advised by Delaware Management Company
Delaware VIP® International Series (Standard Class Shares) - seeks long-term growth without undue risk to principal.
Delaware VIP® Small Cap Value Series (Service Class Shares) - seeks capital appreciation.
Deutsche DWS Investments VIT Funds – advised by DWS Investment Management Americas, Inc.
DWS Small Cap Index VIP (Class A Shares) - seeks to replicate, as closely as possible, before the deduction of expenses, the performance of the Russell 2000® Index, which emphasizes stocks of small U.S. companies. Northern Trust Investments, Inc. is the sub-adviser to this Fund.
Deutsche DWS Variable Series I – advised by DWS Investment Management Americas, Inc.
DWS Core Equity VIP (Class A Shares) - seeks long-term growth of capital, current income and growth of income.
Deutsche DWS Variable Series II – advised by DWS Investment Management Americas, Inc.
DWS High Income VIP (Class A Shares) - seeks a high level of current income.
DWS Small Mid Cap Value VIP (Class A Shares)* - seeks long-term capital appreciation.
DFA Investment Dimensions Group, Inc. – advised by Dimensional Fund Advisors LP
Dimensional VIT Inflation-Protected Securities Portfolio (Institutional Class Shares) - seeks to provide inflation protection and earn current income consistent with inflation-protected securities.
Eaton Vance Variable Trust – advised by Eaton Vance Management
Eaton Vance VT Floating-Rate Income Fund (Initial Class Shares) - seeks to provide a high level of current income.
Federated Hermes Insurance Series – advised by Federated Investment Management Company
Federated Hermes High Income Bond Fund II (Primary Class Shares) - seeks high current income.
Fidelity® Variable Insurance Products Fund II – advised by Fidelity Management & Research Company
Fidelity® VIP Contrafund® Portfolio (Service Class 2 Shares)* - seeks long-term capital appreciation. FMR Co., Inc. (FMRC) is the sub-adviser to this Fund.
Fidelity® VIP Emerging Markets Portfolio (Service Class 2 Shares) - seeks capital appreciation. FMR Co., Inc. (FMRC) is the sub-adviser to this Fund.
Fidelity VIP Index 500 Portfolio (Initial Class Shares) - seeks investment results that correspond to the total return of common stocks publicly traded in the United States, as represented by the S&P 500® Index.
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Fidelity® Variable Insurance Products Fund III – advised by Fidelity Management & Research Company
Fidelity® VIP Mid Cap Portfolio (Service Class 2 Shares)* - seeks long-term growth of capital. FMR Co., Inc. (FMRC) is the sub-adviser to this Fund.
Goldman Sachs Variable Insurance Trust – advised by Goldman Sachs Asset Management, L.P.
Goldman Sachs VIT Mid Cap Value Fund (Institutional Shares)* - seeks long-term capital appreciation.
Goldman Sachs VIT Multi-Strategy Alternatives Portfolio (Service Shares)* - seeks long-term growth of capital.
Great-West Funds, Inc. – advised by Great-West Capital Management, LLC
Great-West Ariel Mid Cap Value Fund (Investor Class Shares) - seeks long-term capital appreciation. Ariel Investments, LLC is the sub-adviser to this Fund.
Great-West Bond Index Fund (Investor Class Shares) - seeks investment results that track the total return of the debt securities that comprise the Bloomberg Barclays U.S. Aggregate Bond Index.
Great-West Core Bond Fund (Investor Class Shares) - seeks to provide total return, consisting of two components: (1) changes in the market value of its portfolio holdings (both realized and unrealized appreciation); and (2) income received from its portfolio holdings. Federated Investment Management Company and Wellington Management Company LLP are the sub-advisers to this Fund.
Great-West Emerging Markets Equity Fund (Investor Class Shares) - seeks long-term capital appreciation. Lazard Asset Management LLC and UBS Asset Management (Americas) Inc. are the sub-advisers to this Fund.
Great-West Global Bond Fund (Investor Class Shares)* - seeks current income with capital appreciation and growth of income. Franklin Advisers, Inc. and Mellon Investments Corporation are the sub-advisers to the Fund.
Great-West Government Money Market Fund (Investor Class Shares) - seeks as high a level of current income as is consistent with the preservation of capital and liquidity. Investment in the Great-West Government Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in this Fund.
Great-West Inflation-Protected Securities Fund (Investor Class Shares) - seeks real return consistent with the preservation of capital. Goldman Sachs Asset Management, L.P. is the sub-adviser to this Fund.
Great-West International Index Fund (Investor Class Shares) - seeks investment results, before fees and expenses that track the total return of the common stocks that comprise the MSCI EAFE (Europe, Australasia, Far East) Index. Irish Life Investment Managers Ltd. is the sub-adviser to this Fund.
Great-West International Value Fund (Investor Class Shares) - seeks long-term capital growth. LSV Asset Management and Massachusetts Financial Services Company are the sub-advisers to this Fund.
Great-West Large Cap Growth Fund (Investor Class Shares) - seeks long-term growth of capital. Amundi Pioneer Asset Management, Inc. and J.P. Morgan Investment Management Inc. are the sub-advisers to this Fund.
Great-West Large Cap Value Fund (Investor Class Shares) - seeks capital growth and current income. Putnam Investment Management, LLC and T. Rowe Price Associates, Inc. are the sub-advisers to this Fund.
Great-West Large Cap Value Fund (Investor II Class Shares)* - seeks capital growth and current income. Putnam Investment Management, LLC and T. Rowe Price Associates, Inc. are the sub-advisers to this Fund.
Great-West Mid Cap Value Fund (Investor Class Shares) - seeks long-term growth of capital. Goldman Sachs Asset Management, L.P. is the sub-adviser to this Fund.
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Great-West Multi-Sector Bond Fund (Investor Class Shares) - seeks high total investment return through a combination of current income and capital appreciation. Loomis, Sayles & Company, L.P. and Newfleet Asset Management, LLC are the sub-advisers to this Fund.
Great-West Real Estate Index Fund (Investor Class Shares) - seeks investment results, before fees and expenses, that track the total return of a benchmark index that measures the performance of publicly traded equity real estate investment trusts (“REITs”). Irish Life Investment Managers Ltd. is the sub-adviser to this Fund.
Great-West S&P Mid Cap 400® Index Fund (Investor Class Shares) - seeks investment results, before fees and expenses, which track the total return of the common stocks that comprise the Standard & Poor's (“S&P”) MidCap 400® Index. Irish Life Investment Managers Ltd. is the sub-adviser to this Fund.
Great-West S&P Small Cap 600® Index Fund (Investor Class Shares) - seeks investment results that track the total return of the common stocks that comprise the Standard & Poor's (“S&P”) SmallCap 600® Index. ) Irish Life Investment Managers Ltd. is the sub-adviser to this Fund.
Great-West Short Duration Bond Fund (Investor Class Shares) - seeks maximum total return that is consistent with preservation of capital and liquidity.
Great-West Small Cap Growth Fund (Investor Class Shares) - seeks long-term capital appreciation. Lord, Abbett & Co. LLC and Peregrine Capital Management, LLC are the sub-advisers to the Fund.
Great-West Small Cap Value Fund (formerly Great-West Loomis Sayles Small Cap Value Fund) (Investor Class Shares) - seeks long-term capital growth. Hotchkis & Wiley Capital Management, LLC and Loomis, Sayles & Company, L.P. are the sub-advisers to this Fund.
Great-West T. Rowe Price Mid Cap Growth Fund (Investor Class Shares) - seeks long-term capital appreciation. T. Rowe Price Associates, Inc. is the sub-adviser to this Fund.
Great-West U.S. Government Securities Fund (Investor Class Shares) - seeks the highest level of return consistent with preservation of capital and substantial credit protection.
Great-West Lifetime Funds
Great-West Lifetime 2015 Fund (Investor Class Shares) - seeks income and secondarily, capital growth.
Great-West Lifetime 2020 Fund (Investor Class Shares) - seeks income and secondarily capital growth.
Great-West Lifetime 2025 Fund (Investor Class Shares) - seeks capital appreciation and income consistent with its current asset allocation; after 2025, it seeks income and secondarily capital growth.
Great-West Lifetime 2030 Fund (Investor Class Shares) - seeks capital appreciation and income consistent with its current asset allocation; after 2030, it seeks income and secondarily capital growth.
Great-West Lifetime 2035 Fund (Investor Class Shares) - seeks capital appreciation and income consistent with its current asset allocation; after 2035, it seeks income and secondarily capital growth.
Great-West Lifetime 2040 Fund (Investor Class Shares) - seeks capital appreciation and income consistent with its current asset allocation; after 2040, it seeks income and secondarily capital growth.
Great-West Lifetime 2045 Fund (Investor Class Shares) - seeks capital appreciation and income consistent with its current asset allocation; after 2045, it seeks income and secondarily capital growth.
Great-West Lifetime 2050 Fund (Investor Class Shares) - seeks capital appreciation and income consistent with its current asset allocation; after 2050, it seeks income and secondarily capital growth.
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Great-West Lifetime 2055 Fund (Investor Class Shares) - seeks capital appreciation and income consistent with its current asset allocation; after 2055, it seeks income and secondarily capital growth.
Great-West Lifetime 2060 Fund (Investor Class Shares) - seeks capital appreciation and income consistent with its current asset allocation; after 2060, it seeks income and secondarily capital growth.
Great-West Profile Funds
Each of the following Profile Funds seeks to provide an asset allocation program designed to meet certain investment goals based on an investor’s risk tolerance, investment horizon and personal objectives.
Great-West Aggressive Profile Fund (Investor Class Shares) - seeks long-term capital appreciation primarily through investments in underlying funds that emphasize equity investments.
Great-West Conservative Profile Fund (Investor Class Shares) - seeks capital preservation primarily through investments in underlying funds that emphasize fixed income investments.
Great-West Moderate Profile Fund (Investor Class Shares) - seeks long-term capital appreciation primarily through investments in underlying funds with a relatively equal emphasis on equity and fixed income investments.
Great-West Moderately Aggressive Profile Fund (Investor Class Shares) - seeks long-term capital appreciation primarily through investments in underlying funds that emphasize equity investments and, to a lesser degree, in underlying funds that emphasize fixed income investments.
Great-West Moderately Conservative Profile Fund (Investor Class Shares) - seeks income and capital appreciation primarily through investments in underlying funds that emphasize fixed income investments and, to a lesser degree, in underlying funds that emphasize equity investments.
Janus Aspen Series – advised by Janus Capital Management LLC
Janus Henderson Balanced Portfolio (Institutional Shares) - seeks long-term capital growth, consistent with preservation of capital and balanced by current income.
Janus Henderson Enterprise Portfolio (Institutional Shares) - seeks long-term growth of capital.
Janus Henderson Flexible Bond Portfolio (Institutional Shares) - seeks to obtain maximum total return, consistent with preservation of capital.
Janus Henderson Forty Portfolio (Institutional Shares) - seeks long-term growth of capital.
Janus Henderson Global Technology and Innovation Portfolio (Institutional Shares) - seeks long-term growth of capital.
Janus Henderson Overseas Portfolio (Institutional Shares)* - seeks long-term growth of capital.
JPMorgan Insurance Trust – advised by J.P. Morgan Investment Management Inc.
JPMorgan Insurance Trust Small Cap Core Portfolio (Class 1 Shares) - seeks capital growth over the long term.
JPMorgan Insurance Trust U.S. Equity Portfolio (Class 1 Shares) - seeks high total return.
Legg Mason Partners Variable Equity Trust – advised by Legg Mason Partners Fund Advisor, LLC
ClearBridge Variable Mid Cap Portfolio (Class I Shares) - seeks long-term growth of capital. ClearBridge Investments, LLC is the sub-adviser to this Fund.
ClearBridge Variable Small Cap Growth Portfolio (Class I Shares) - seeks long-term growth of capital. ClearBridge Investments, LLC is the sub-adviser to this Fund.
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Lord Abbett Series Fund, Inc. – advised by Lord, Abbett & Co. LLC
Lord Abbett Series Fund Developing Growth Portfolio (Class VC Shares)* - seeks long-term growth of capital.
Lord Abbett Series Fund Total Return Portfolio (Class VC Shares) - seeks income and capital appreciation to produce a high total return.
MFS® Variable Insurance Trust – advised by Massachusetts Financial Services Company
MFS® VIT Growth Series (Initial Class Shares) - seeks capital appreciation.
MFS® VIT Mid Cap Growth Series (Initial Class Shares) - seeks capital appreciation.
MFS® VIT Research Series (Initial Class Shares) - seeks capital appreciation.
MFS® VIT Total Return Bond Series (Initial Class Shares) - seeks total return with an emphasis on current income, but also considering capital appreciation.
MFS® VIT Value Series (Initial Class Shares) - seeks capital appreciation.
MFS® Variable Insurance Trust II – advised by Massachusetts Financial Services Company
MFS® VIT II International Growth Portfolio (Initial Class Shares) - seeks capital appreciation.
MFS® Variable Insurance Trust III – advised by Massachusetts Financial Services Company
MFS® VIT III Blended Research® Small Cap Equity Portfolio (Initial Class Shares) - seeks capital appreciation.
MFS® VIT III Global Real Estate Portfolio (Initial Class Shares) - seeks total return.
MFS® VIT III Mid Cap Value Portfolio (Initial Class Shares) - seeks capital appreciation.
Neuberger Berman Advisers Management Trust – advised by Neuberger Berman Investment Advisers LLC
Neuberger Berman AMT Mid Cap Intrinsic Value Portfolio (Class I Shares)* - seeks growth of capital.
Neuberger Berman AMT Sustainable Equity Portfolio (Class I Shares) - seeks long-term growth of capital by investing primarily in securities of companies that meet the Fund’s environmental, social and governance (ESG) criteria.
PIMCO Variable Insurance Trust – advised by Pacific Investment Management Company, LLC
PIMCO VIT CommodityRealReturn® Strategy Portfolio (Administrative Class Shares) - seeks maximum real return, consistent with prudent investment management.
PIMCO VIT Global Bond Opportunities Portfolio (Unhedged) (Administrative Class Shares) - seeks maximum total return, consistent with preservation of capital and prudent investment management.
PIMCO VIT High Yield Portfolio (Administrative Class Shares) - seeks maximum total return, consistent with preservation of capital and prudent investment management.
PIMCO VIT Low Duration Portfolio (Administrative Class Shares) - seeks maximum total return, consistent with preservation of capital and prudent investment management.
PIMCO VIT Real Return Portfolio (Administrative Class Shares) - seeks maximum real return, consistent with preservation of real capital and prudent investment management.
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PIMCO VIT Total Return Portfolio (Administrative Class Shares) - seeks maximum total return, consistent with preservation of capital and prudent investment management.
Pioneer Variable Contracts Trust – advised by Amundi Pioneer Asset Management, Inc.
Pioneer Real Estate Shares VCT Portfolio (Class I Shares) - seeks long-term growth of capital; current income is a secondary objective.
Putnam Variable Trust – advised by Putnam Investment Management, LLC
Putnam VT Emerging Markets Equity Fund Class (Class IA Shares)* - seeks long-term capital appreciation. The Putnam Advisory Company, LLC and Putnam Investments Limited are the sub-advisers to this Fund.
Putnam VT Focused International Equity Fund (formerly Putnam VT Global Equity Fund) (Class IA Shares) - seeks capital appreciation. The Putnam Advisory Company, LLC and Putnam Investments Limited are the sub-advisers to this Fund.
Putnam VT Global Asset Allocation Fund (Class IA Shares) - seeks long-term return consistent with preservation of capital. The Putnam Advisory Company, LLC and Putnam Investments Limited are the sub-advisers to this Fund.
Putnam VT Growth Opportunities Fund (Class IA Shares) - seeks capital appreciation. Putnam Investments Limited is the sub-adviser to this Fund.
Putnam VT High Yield Fund (Class IA Shares) - seeks high current income. Putnam Investments Limited is the sub-adviser to this Fund.
Putnam VT Income Fund (Class IB Shares) - seeks high current income consistent with what the manager believes to be prudent risk. Putnam Investments Limited is the sub-adviser to this Fund.
Putnam VT International Value Fund (Class IA Shares) - seeks capital growth; current income is a secondary objective. The Putnam Advisory Company, LLC and Putnam Investments Limited are the sub-advisers to this Fund.
Putnam VT Large Cap Value Fund (formerly Putnam VT Equity Income Fund) (Class IA Shares) - seeks capital growth and current income. Putnam Investments Limited is the sub-adviser to this Fund.
Putnam VT Research Fund (Class IA Shares) - seeks capital appreciation. The Putnam Advisory Company, LLC and Putnam Investments Limited are the sub-advisers to this Fund.
Putnam VT Small Cap Value Fund (Class IA Shares) - seeks capital appreciation. Putnam Investments Limited is the sub-adviser to this Fund.
Putnam VT Sustainable Future Fund (Class IA Shares) - seeks capital appreciation and, as a secondary objective, current income. Putnam Investments Limited is the sub-adviser to this Fund.
Royce Capital Fund – advised by Royce & Associates, LP
Royce Small-Cap Portfolio (Service Class Shares)* - seeks long-term growth of capital.
T. Rowe Price Equity Series, Inc. – advised by T. Rowe Price Associates, Inc.
T. Rowe Price Blue Chip Growth Portfolio (Portfolio-II Class Shares) - seeks to provide long-term capital growth; income is a secondary objective.
VanEck VIP Trust – advised by Van Eck Associates Corporation
VanEck VIP Emerging Markets Fund (Initial Class Shares)* - seeks long-term capital appreciation by investing primarily in equity securities in emerging markets around the world.
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VanEck VIP Global Resources Fund (formerly VanEck VIP Global Hard Assets Fund) (Initial Class Shares)* - seeks long-term capital appreciation by investing primarily in global resource securities; income is a secondary consideration.
Vanguard Variable Insurance Funds - advised by The Vanguard Group, Inc.
Vanguard VIF Global Bond Index Portfolio - seeks to track the performance of a benchmark index that measures the investment return of the global, investment-grade, fixed income market.
Vanguard VIF Total Bond Market Index Portfolio - seeks to track the performance of a broad, market-weighted bond index.
Victory Variable Insurance Funds – advised by Victory Capital Management, Inc.
Victory RS Small Cap Growth Equity VIP Series (Class I Shares) - seeks long-term capital growth.
* The Sub-Account investing in this Fund is closed to new Owners.
You should contact your representative for further information on the availability of the Divisions.
Each Fund is subject to certain investment restrictions and policies that may not be changed without the approval of a majority of the shareholders of the Fund. See the Fund prospectuses for further information.
We automatically reinvest all dividends and capital gain distributions from the Funds in shares of the distributing Fund at their net asset value. The income and realized and unrealized gains or losses on the assets of each Division are separate and are credited to, or charged against, the particular Division without regard to income, gains or losses from any other Division or from any other part of our business. We will use amounts you allocate to a Division to purchase shares in the corresponding Fund and will redeem shares in the Funds to meet Policy obligations or make adjustments in reserves. The Funds are required to redeem their shares at net asset value and to make payment within seven days.
The Funds may also be available to separate accounts offering variable annuity, variable life products and qualified plans of other affiliated and unaffiliated insurance companies, as well as our other separate accounts. Although we do not anticipate any disadvantages to this, there is a possibility that a material conflict may arise between the interests of the Series Account and one or more of the other separate accounts participating in the Funds. A conflict may occur due to a change in law affecting the operations of variable life and variable annuity separate accounts, differences in the voting instructions of Owners and those of other companies, or some other reason. In the event of conflict, we will take any steps necessary to protect Owners, including withdrawal of the Series Account from participation in the Funds that are involved in the conflict or substitution of shares of other Funds.
Voting. We are the legal owner of all shares of the Funds held in the Divisions of the Series Account. In general, you do not have a direct right to vote the Fund shares held in the Divisions of the Series Account. However, under current law, you are entitled to give us instructions on how to vote the shares held in the Divisions. At regular and special shareholder meetings, we will vote the shares held in the Divisions in accordance with those instructions received from Owners who have an interest in the respective Divisions.
We will vote shares held in each Division for which no timely instructions from Owners are received, together with shares not attributable to a Policy, in the same proportion as those shares in that Division for which instructions are received.
The number of shares in each Division for which instructions may be given by an Owner is determined by dividing the portion of the Account Value derived from participation in that Division, if any, by the value of one share of the corresponding Fund. We will determine the number as of the record date chosen by the Fund. Fractional votes are counted. Voting instructions will be solicited in writing at least 14 days prior to the shareholders’ meeting.
We may, if required by state insurance regulators, disregard voting instructions if those instructions would require shares to be voted so as to cause a change in the sub-classification or investment policies of one or more of the Funds, or to approve or disapprove an investment management contract. In addition, we may disregard voting instructions that would require changes in the investment policies or investment adviser, provided that we reasonably disapprove of those changes in accordance with applicable federal regulations. If we disregard voting instructions, we will advise you of that action and our reasons for it in our next communication to Owners.
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This description reflects our current view of applicable federal securities law. Should the applicable federal securities laws change so as to permit us to vote shares held in the Series Account in our own right, we may elect to do so.
Fixed Account
The Fixed Account is part of our General Account. We have absolute ownership of the assets in the Fixed Account. Except as limited by law, we have sole control over the investment of the General Account assets. You do not share in the investment experience of the General Account, but are allowed to allocate and transfer Account Value into the Fixed Account. We assume the risk of investment gain or loss on this amount. All assets in the General Account are subject to our general liabilities from business operations. The Fixed Account does not participate in the investment performance of the Sub-Accounts. The Policy gives the Company the right to impose limits on the amount each Owner can invest in the Fixed Account and such limits are subject to change at the sole discretion of the Company.
The Fixed Account is not registered with the SEC under the Securities Act of 1933. Neither the Fixed Account nor the General Account have been registered as an investment company under the 1940 Act. As a result, neither the Fixed Account nor the General Account are generally subject to regulation under either Act. However, certain disclosures may be subject to generally applicable provisions of the federal securities laws regarding the accuracy of statements made in registration statements.
The Fixed Account offers a guarantee of principal, after deductions for fees and expenses. We also guarantee that amounts you allocated to the Fixed Account will earn interest at a rate of at least the minimum guaranteed interest rate indicated in your Policy. We do not rely on predetermined formulas to set Fixed Account interest rates. We will review the interest rate at least once a year, but at the Company’s discretion we may reset the interest rate monthly.
The Fixed Account may not be available in all states.
Employer-Financed Insurance Purchase Arrangements--Tax and Other Legal Issues
In addition to corporations and other employers, the Policy is also available for purchase by individuals whose employers will pay some or all of the Premiums due under the Policy pursuant to an employer-financed insurance purchase arrangement. In such cases, references in this prospectus to the “Owner” of the Policy will refer to the individual and, depending on the context, references to the “payment of premiums” will refer to payments to Great-West under the Policy by the employer and/or by the employee.
Employers and employees contemplating the purchase of a Policy as a part of an employer-financed insurance purchase arrangement should consult qualified legal and tax counsel with regard to the issues presented by such a transaction. For this purpose, an employer-financed insurance purchase arrangement is a plan or arrangement which contemplates that an employer will pay one or more Premiums for the purchase of a Policy that will be owned, subject to certain restrictions, by an employee or by a person or entity designated by the employee.
The general considerations applicable to such a purchase include the following:
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.
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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.
Charges and Deductions
The Policy has insurance features and investment features, and there are costs related to each. This section describes the fees and charges that we may make under the Policy to compensate for: (1) the services and benefits we provide; (2) the costs and expenses we incur; and (3) the risks we assume. The fees and charges we deduct under this Policy may result in a profit to us.
Expense Charge Applied to Premium. We will deduct a maximum charge of 10% from each Premium payment, which is broken down as follows. A maximum of 6.5% will be deducted as sales load to compensate us in part for sales and promotional expenses in connection with selling the Policies, such as commissions, the cost of preparing sales literature, other promotional activities and other direct and indirect expenses. A maximum of 3.5% of Premium will be used to cover Premium taxes and certain federal income tax obligations resulting from the receipt of Premiums. All states and some cities and municipalities impose taxes on Premiums paid for life insurance, which generally range from 2% to 4% of Premium but may exceed 4% in some states. The amount of your state’s Premium tax may be higher or lower than the amount attributable to Premium taxes that we deduct from your Premium payments.
The current expense charge applied to Premium for sales load is 2.5% of Premium up to target and 1.0% of Premium in excess of target for Policy Years 1 through 10. Your target Premium will depend on the initial Total Face Amount of your Policy, your Issue Age, your sex (except in unisex states), and rating class (if any) which equals the maximum Premium payable under the seven-pay test such that the Policy remains compliant with 7702A of the Code. Thereafter, there is no charge for sales load. The current expense charge applied to Premium to cover our Premium taxes and the federal tax obligation described above is 3.5% in all Policy Years.
Where permitted by applicable state insurance law, if your Policy is surrendered for the Surrender Benefit (Account Value less any outstanding Policy loans and less accrued loan interest) within the first seven Policy Years, we will return a percentage of the expense charge. The return of expense charge will be a percentage of your Account Value on the date the Request for surrender was received by us at our Corporate Headquarters. This amount will be in addition to the Surrender Benefit.
The return of expense charge is based on the following: 
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%
As described under the heading “Term Life Insurance Rider” below, we may offer a term life insurance rider that may have the effect of reducing the sales charge and the return of expense charge you pay on purchasing an equivalent amount of insurance. We offer this rider in circumstances that result in the savings of sales and distribution expenses and administrative costs. To qualify, a corporation, employer, or other purchaser must satisfy certain criteria such as, for example, the number of Policies it expects to purchase and the expected Total Face Amount under all such Policies. Generally, the sales contacts and effort and administrative costs per Policy depend on factors such as the number of Policies purchased by a single Owner, the purpose for which the Policies are purchased, and the characteristics of the proposed Insureds. The amount of reduction and the criteria for qualification are related to the sales effort and
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administrative costs resulting from sales to a qualifying Owner. Great-West from time to time may modify on a uniform basis both the amounts of reductions and the criteria for qualification. Reductions in these charges will not be unfairly discriminatory against any person, including the affected Owners funded by the Series Account.
Mortality and Expense Risk Charge. This charge is for the mortality and expense risks we assume with respect to the Policy. It is based on an annual rate that we accrue against each Division of the Series Account on a daily basis and deduct on the first day of each Policy month by cancelling accumulation units on a pro-rata basis across all Sub-Accounts. We convert the mortality and expense risk charge into a daily rate by dividing the annual rate by 365. The mortality and expense risk charge will be determined by us from time to time based on our expectations of future interest, mortality experience, persistency, expenses and taxes, but will not exceed 0.90% annually. Currently, the charge is 0.28% for Policy Years 1 through 20 and 0.10% thereafter. On surrender and payment of the death benefit, we will deduct the pro-rata portion of the mortality and expense risk charge that has accrued.
Because the value of your Sub-Accounts can vary from month-to-month, the monthly deduction for the mortality and expense risk charge will also vary. If the amount the mortality and expense risk charge is insufficient to cover the costs resulting from the mortality and expense risks that we assume, we will bear the loss. If the amount we charge is more than sufficient to cover such costs, we will make a profit on the charge. To the extent that we do make a profit from this charge, we may use this profit for any corporate purpose, including the payment of administrative, marketing, distribution, and other expenses in connection with the Policies.
The mortality risk we assume is that the group of lives insured under the Policies may, on average, live for shorter periods of time than we estimated. The expense risk we assume is that the costs of issuing and administering Policies may be more than we estimated.
Monthly Deduction. We make a monthly deduction from your Account Value on the Policy Date and the first day of each Policy Month. This monthly deduction will be charged proportionally to the amounts in the Divisions.
The monthly deduction equals the sum of 1, 2, 3, 4 and 5 where:
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 net amount at risk equals:
•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.
If there are increases in the Total Face Amount other than increases caused by changes in the death benefit option, the monthly deduction described above is determined separately for the initial Total Face Amount and each increase in the Total Face Amount. In calculating the net amount at risk, your Account Value will first be allocated to the most recent increase in the death benefit and then to each increase in the Total Face Amount in the reverse order in which the increases were made.
Monthly Risk Rates. The monthly risk rate is used to determine the cost of insurance charge (monthly risk charge) for providing insurance coverage under the Policy. The monthly risk rate is applied to the amount at risk. The monthly risk rates (except for any such rate applicable to an increase in the Total Face Amount) are based on the length of time your Policy has been in force and the Insured’s sex (in the case of non-unisex Policies) and Issue Age. If the Insured is in a rated class as specified in your Policy, we will deduct an extra risk charge that reflects that class rating. The monthly risk rates applicable to each increase in the Total Face Amount are based on the length of time the increase has been in force and the Insured’s sex (in the case of non-unisex Policies), Issue Age, and class rating, if any. The monthly risk rates will be determined by us from time to time based on our expectations of future experience with respect to mortality, investment earnings, persistency, capital and reserve requirements, interest rates and expenses (including taxes). For Policies issued on or after December 26, 2019, the guaranteed maximum monthly risk rates are based on the 2017 Commissioner's Standard Ordinary, Age Nearest Birthday, Male/Female, Smoker/Non-Smoker Ultimate Mortality Table (“2017 CSO”). For Policies issued prior to December 26, 2019, the guaranteed maximum monthly risk rates are based on the 2001 Commissioner's Standard Ordinary, Age Nearest Birthday, Male/Female, Smoker/Non-Smoker Ultimate Mortality Table.
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Currently, the guaranteed minimum monthly risk charge under the 2017 CSO is $0.01 per $1000 and the guaranteed maximum is $83.33 per $1000. If your Policy is issued in Montana, unisex rates are charged and these rates will never exceed the male Smoker Ultimate Mortality Table.
The guaranteed maximum monthly risk rates reflect any class rating applicable to the Policy. We have filed a detailed statement of our methods for computing Account Values with the insurance department in each jurisdiction where the Policy was delivered. These values are equal to or exceed the minimum required by law.
The monthly risk rate is greater on policies that require less underwriting to be performed regardless of the health of the individual. Monthly risk rate charges will be greatest on guaranteed issue policies, followed by simplified issue policies, then fully underwritten policies.
Service Charge. We will deduct a maximum of $10 from your Account Value on the first day of each Policy Month to cover our administrative costs, such as salaries, postage, telephone, office equipment and periodic reports. This charge may be increased or decreased by us from time to time based on our expectations of future expenses, but will never exceed $10 per Policy Month. The service charge will be deducted proportionally from the Divisions. The current service charge is $7.50 per Policy Month.
Transfer Fee. A maximum administrative charge of $10 per Transfer of Account Value from one Division to other Divisions will be deducted from your Account Value for all Transfers in excess of 12 made in the same Policy Year. The allocation of your Initial Premium from the Great-West Government Money Market Division to your selected Divisions will not count toward the 12 free Transfers. Similarly, Transfers made under dollar cost averaging and periodic rebalancing under the rebalancer option are not subject to the fee and do not count as Transfers for this purpose (except a one-time rebalancing under the rebalancer option will count as one Transfer). All Transfers Requested on the same Business Day will be aggregated and counted as one Transfer. The current charge is $10 per Transfer.
Partial Withdrawal Fee. A maximum administrative fee of $25 will be deducted from your Account Value for all partial withdrawals after the first made in the same Policy Year. The partial withdrawal fee will be deducted proportionally from all Divisions.
Surrender Charges. Your Policy has no surrender charges.
Change of Death Benefit Option Fee. A maximum administrative fee of $100 will be deducted from your Account Value each time you change your death benefit option. The change of death benefit fee will be deducted proportionally from all Divisions.
Fund Expenses. You indirectly bear the charges and expenses of the Funds whose shares are held by the Divisions to which you allocate your Account Value. The Series Account purchases shares of the Funds at net asset value. Each Fund’s net asset value reflects investment advisory fees and administrative expenses already deducted from the Fund’s assets. For more information concerning the investment advisory fees and other charges against the Funds, see the Fund prospectuses and the statements of additional information for the Funds, which are available upon Request.
We may receive compensation from the investment advisers or administrators of the Funds. Such compensation will be consistent with the services we provide or the cost savings resulting from the arrangement and, therefore, may differ between Funds. See “Payments We Receive” above.
General Description of Policy
Unless otherwise indicated, the description of the Policy in this prospectus assumes that the Policy is in force, there is no Policy Debt and current federal tax laws apply. The Policy described in this prospectus is offered to corporations and other employers to provide life insurance coverage in connection with, among other things, deferred compensation plans and employer-financed insurance purchase arrangements. We issue Policies on the lives of prospective Insureds who meet our underwriting standards.
Policy Rights
Owner. While the Insured is alive, unless you have assigned any of these rights, you may:
•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;
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•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.
When you transfer your rights to a new Owner, you automatically revoke any prior contingent owner designation. When you want to change or revoke a prior Beneficiary designation, you have to specify that action. You do not affect a prior Beneficiary when you merely transfer ownership, or change or revoke a contingent owner designation.
You do not need the consent of a Beneficiary or a contingent owner in order to exercise any of your rights. However, you must give us written notice satisfactory to us of the Requested action. Your Request will then, except as otherwise specified herein, be effective as of the date you signed the form, subject to any action taken before it was received by us.
Beneficiary. The Beneficiary has no rights in the Policy until the death of the Insured, except an irrevocable Beneficiary cannot be changed without the consent of that Beneficiary. If a Beneficiary is alive at that time, the Beneficiary will be entitled to payment of the Death Benefit Proceeds as they become due.
Policy Limitations
Allocation of Net Premiums. Except as otherwise described herein, your net Premium will be allocated in accordance with the allocation percentages you select. Percentages must total 100% and can be up to two decimal places.
We will credit Premium payments received prior to the end of the free look period as described in the “Free Look Period” section of this prospectus below.
You may change your allocation percentages at any time by Request.
Transfers Among Divisions. Subject to our rules as they may exist from time to time, you may at any time after the Free-Look Period Transfer to another Division all or a portion of the Account Value allocated to a Division. We will make Transfers pursuant to a Request.
Transfers may be Requested by indicating the Transfer of either a specified dollar amount or a specified percentage of the Division’s value from which the Transfer will be made.
Transfer privileges are subject to our consent. We reserve the right to impose limitations on Transfers, including, but not limited to: (1) the minimum amount that may be Transferred; and (2) the minimum amount that may remain in a Division following a Transfer from that Division. In addition, we do not intend to enforce the restriction on Transfers set forth in your Policy except in cases of identified market timing unless the Sub-Account has additional restrictions that are noted in the respective Fund’s prospectus. See “Market Timing & Excessive Trading” below.
In addition, we do not intend to enforce restrictions on Transfers set forth in your Policy except in cases of identified market timing unless the Sub-Account has additional restrictions that are noted in the respective Fund’s prospectus. See “Market Timing & Excessive Trading” below.
A fee of $10 per Transfer will apply for all Transfers in excess of 12 made in a Policy Year. We may increase or decrease the Transfer charge; however, it is guaranteed to never exceed $10 per Transfer. All Transfers Requested on the same Business Day will count as only one Transfer toward the 12 free Transfers. The Transfer of your Initial Premium from the Great-West Government Money Market Division to your selected Divisions does not count toward the 12 free Transfers. Likewise, any Transfers under dollar cost averaging or periodic rebalancing of your Account Value under the rebalancer option do not count toward the 12 free Transfers (a one-time rebalancing, however, will be counted as one Transfer).
Fixed Account Transfers. Transfers into the Fixed Account are limited to once every 60 days. If the Company has imposed a limit on the amount that can be allocated to the Fixed Account, then your Transfer will be rejected if it would cause the value of the Fixed Account to exceed such limit. Transfers from the Fixed Account may only be made once per year. The maximum to be transferred out will be the greater of 25% of your balance in the Fixed Account or the amount of the Transfer in the previous 365 day period.
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Market Timing & Excessive Trading. Frequent Transfers may involve an effort to take advantage of the possibility of a lag between a change in the value of an underlying Fund’s securities and the reflection of that change in the Fund’s share price. This strategy, sometimes referred to as “market timing,” involves an attempt to buy shares of a Fund at a price that does not reflect the current market value of the securities of the Fund, and then to realize a profit when the Fund shares are sold the next Valuation Date or thereafter.
When you make a Transfer Request among the Funds, your request triggers the purchase and redemption of Fund shares. Frequent Transfers cause frequent purchases and redemptions of Fund shares. Frequent purchases and redemptions of Fund shares can cause adverse effects for a Fund, Fund shareholders, the Sub-Account, other Owners, beneficiaries, annuitants, or owners of other variable contracts we issue that invest in the Sub-Account. Frequent Transfers can result in the following adverse effects:
•Increased brokerage, trading and transaction costs;
•Disruption of planned investment strategies;
•Forced and unplanned liquidation and Fund turnover;
•Lost opportunity costs; and
•Large asset swings that decrease the Fund’s ability to provide maximum investment return to all Owners.
In order to try to protect Owners and the Funds from the potential adverse effects of frequent Transfer activity, we have implemented certain market timing policies and procedures (the “Market Timing Procedures”). Our Market Timing Procedures are designed to detect and prevent frequent, short-term Transfer activity that may adversely affect the Funds, Fund shareholders, the Sub-Account, other Owners, beneficiaries, annuitants and owners of other variable contracts we issue that invest in the Sub-Account. We discourage frequent Transfers of Account Value between the Sub-Accounts.
We monitor Transfer activity in the Policy to identify frequent Transfer activity in any Policy. Our current Market Timing Procedures are intended to detect Transfer activity in which the Transfers exceed a certain dollar amount and a certain number of Transfers involving the same Funds within a specific time period. We regularly review transaction reports in an attempt to identify Transfers that exceed our established parameters. We do not include Transfers made pursuant to the dollar-cost averaging and Fund rebalancing programs when monitoring for frequent Transfer activity.
When we identify Transfer activity exceeding our established parameters in a Policy or group of Policies that appear to be under common control, we suspend non-written methods of requesting Transfers for that Policy or group of Policies. All Transfer Requests for the affected Policy or group of Policies must be in writing. We notify the affected Owner(s) in writing of these restrictions.
In addition to our Market Timing Procedures, the Funds may have their own market timing policies and restrictions. While we reserve the right to enforce the Funds’ policies and procedures, Owners and other persons with interests under the Policy should be aware that we may not have the contractual authority or the operational capacity to apply the market timing policies and procedures of the Funds, except that, under SEC rules, we are required to: (1) enter into a written agreement with each Fund or its principal underwriter that obligates us to provide to the Fund promptly upon request certain information about the trading activity of individual Owners, and (2) execute instructions from the Fund to restrict or prohibit further purchases or Transfers by specific Owners who violate the market timing policies established by the Fund.
Some of the Funds have reserved the right to temporarily or permanently refuse payments or Transfer Requests from us if, in the judgment of the Fund’s investment adviser, the Fund would be unable to invest effectively in accordance with its investment objective or policies, or would otherwise potentially be adversely affected. To the extent permitted by law, we reserve the right to delay or refuse to honor a Transfer Request, or to reverse a Transfer at any time we are unable to purchase or redeem shares of any of the Funds because of the Fund’s refusal or restriction on purchases or redemptions. We will notify the Owner(s) of any refusal or restriction on a purchase or redemption by a Fund relating to that Owner’s Transfer Request. Some Funds also may impose redemption fees on short-term trading (i.e., redemptions of mutual fund shares within a certain number of business days after purchase). We reserve the right to implement, administer, and collect any redemption fees imposed by any of the Funds. You should read the prospectus of each Fund for more information about its ability to refuse or restrict purchases or redemptions of its shares, which may be more or less restrictive than our Market Timing Procedures and those of other Funds, and to impose redemption fees.
We apply our Market Timing Procedures consistently to all Owners without special arrangement, waiver or exception. We reserve the right to change our Market Timing Procedures at any time without prior notice as we deem necessary or appropriate to better detect and deter potentially harmful frequent Transfer activity, to comply with state or federal regulatory requirements, or both. We may change our parameters to monitor for different dollar amounts, number of Transfers, time period of the Transfers, or any of these.
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Owners seeking to engage in frequent Transfer activity may employ a variety of strategies to avoid detection. Our ability to detect and deter such Transfer activity is limited by operational systems and technological limitations.
Furthermore, the identification of Owners determined to be engaged in transfer activity that may adversely affect others involves judgments that are inherently subjective. Accordingly, despite our best efforts, we cannot guarantee that our Market Timing Procedures will detect or deter every potential market timer. In addition, because other insurance companies, retirement plans, or both may invest in the Funds, we cannot guarantee that the Funds will not suffer harm from frequent transfer activity in contracts or policies issued by other insurance companies or by retirement plan participants.
Exchange of Policy. You may exchange your Policy for a new policy issued by Great-West that does not provide for variable benefits. The new policy will have the same Policy Date, Issue Age, and Insured as your Policy on the date of the exchange. The exchange must be made within 24 Policy Months after the Issue Date of your Policy and all Policy Debt must be repaid.
The cash value of your current Policy will be applied to the new policy as the Initial Premium.
Age Requirements. An Insured’s Issue Age must be between 20 and 85 for Policies issued on a fully underwritten basis and between 20 and 70 for Policies issued on a guaranteed underwriting or a simplified underwriting basis.
Policy or Registrant Changes
Addition, Deletion or Substitution of Investment Options. Great-West selects the investment options offered though the Contract based on several criteria, including but not limited to asset class coverage, brand recognition, the reputation and tenure of the adviser or sub-adviser, expenses, performance, marketing, availability, investment conditions, and the qualifications of each investment company. Another factor we consider is whether the investment option or an affiliate of the investment option will compensate Great-West for providing certain administrative, marketing, or support services that would otherwise be provided by the investment option, its investment adviser, or its distributor. For more information on such compensation, see “Charges and Deductions” in this prospectus. When we develop and offer a variable annuity product in cooperation with a fund family or a distributor, Great-West will generally include investment options based on recommendations made by the fund family or the distributor, whose selection criteria may differ from our own. We have selected investment options of the Great-West Funds at least in part because they are managed by our directly owned subsidiary.
Great-West does not control the investment options and cannot guarantee that any of the investment options will always be available for allocation of Contributions or Transfers. We retain the right to make changes in the Series Account and in its investments, including the right to establish new Sub-Accounts or to eliminate existing Sub-Accounts. Great-West periodically reviews each investment option and reserves the right to discontinue the offering of any investment option if we determine the investment option no longer meets one or more of the criteria, or if the investment option has not attracted significant allocations. If an investment option is discontinued, we may substitute shares of another investment option or shares of another investment company for the discontinued investment option’s shares. Any share substitution will comply with the requirements of the 1940 Act. If you are contributing to a Sub-Account corresponding to an investment option that is being discontinued, you will be given notice prior to the investment option’s elimination. Before a Sub-Account is eliminated, we will notify you and request that you reallocate the amounts invested in the Sub-Account to be eliminated.
The Series Account. We reserve the right to operate the Series Account in any form permitted by law, to take any action necessary to comply with applicable law or obtain and continue any exemption from applicable laws, to assess a charge for taxes attributable to the operation of the Series Account or for other taxes, as described in “Charges and Deductions” section of this prospectus, and to change the way in which we assess other charges, as long as the total other charges do not exceed the maximum guaranteed charges under the Policies.
Entire Contract. Your entire contract with us consists of the Policy, including the attached copy of your application and any attached copies of supplemental applications for increases in the Total Face Amount, any endorsements and any riders. Any illustrations prepared in connection with the Policy do not form a part of our contract with you and are intended solely to provide information about how values under the Policy, such as Cash Surrender Value, death benefit and Account Value, will change with the investment experience of the Divisions, and such information is based solely upon data available at the time such illustrations are prepared.
Alteration. Sales representatives do not have any authority to either alter or modify your Policy or to waive any of its provisions. The only persons with this authority are our president, secretary, or one of our vice presidents.
Modification. Upon notice to you, we may modify the Policy if such a modification –
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•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.
We also reserve the right to modify certain provisions of the Policy as stated in those provisions. In the event of any such modification, we may make appropriate amendment to the Policy to reflect such modification.
Assignments. During the lifetime of the Insured, you may assign all or some of your rights under the Policy. All assignments must be filed at our Corporate Headquarters and must be in written form satisfactory to us. The assignment will then be effective as of the date you signed the form, subject to any action taken before we received it. We are not responsible for the validity or legal effect of any assignment.
Notice and Elections. To be effective, all notices and elections under the Policy must be in writing, signed by you, and received by us at our Corporate Headquarters. Certain exceptions may apply. Unless otherwise provided in the Policy, all notices, Requests and elections will be effective when received at our Corporate Headquarters complete with all necessary information.
Account Value
Your Account Value is the sum of your interests in each Division you have chosen, plus your interests in the Fixed Account, plus the amount in your Loan Account. The Account Value varies depending upon the Premiums paid, expense charges applied to Premium, mortality and expense risk charge, service charges, monthly risk charges, partial withdrawals, fees, Policy loans and the net investment factor (described below) for the Divisions to which your Account Value is allocated and the interest credited to the Fixed Account.
We measure the amounts in the Divisions in terms of Units and Unit Values. On any given date, your interest in a Division is equal to the Unit Value multiplied by the number of Units credited to you in that Division. Amounts allocated to a Division will be used to purchase Units of that Division. Units are redeemed when you make partial withdrawals, undertake Policy loans or Transfer amounts from a Division, and for the payment of service charges, monthly mortality and expense charges, monthly risk charges and other fees. The number of Units of each Division purchased or redeemed is determined by dividing the dollar amount of the transaction by the Unit Value for the Division. The Unit Value for each Division was established at $10 for the first Valuation Date of the Division. The Unit Value for any subsequent Valuation Date is equal to the Unit Value for the preceding Valuation Date multiplied by the net investment factor (determined as provided below). The Unit Value of a Division for any Valuation Date is determined as of the close of the Valuation Period ending on that Valuation Date.
Transactions are processed on the date we receive a Premium at our Corporate Headquarters or upon approval of a Request. If your Premium or Request is received on a date that is not a Valuation Date, or after the close of the NYSE on a Valuation Date, the transaction will be processed on the next Valuation Date.
The Account Value on the Policy Date equals:
•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.
We apply your Initial Premium on the Policy Date, which will be the Issue Date (if we have already received your Initial Premium) or the Business Day we receive a Premium equal to, or in excess of, the Initial Premium after we have approved your application.
The Account Value attributable to each Division of the Series Account on the subsequent Valuation Dates is equal to:
•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
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•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.
Net Investment Factor. The net investment factor for each Division for any Valuation Period is determined by dividing (1) by (2) where:
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.
The net investment factor may be greater or less than or equal to one. Therefore, the Unit Value may increase, decrease or remain unchanged.
The net asset value reflects the investment advisory fees and other expenses that are deducted from the assets of each Fund. These fees and expenses are not fixed or specified under the terms of the Policy, may differ between Funds, and may vary from year to year. Fund fees and expenses are described in each Fund prospectus.
The Fixed Account Value is:
•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.
During any Policy Month the Fixed Account Value will be calculated on a consistent basis. For purposes of crediting interest, Policy value deducted, transferred or withdrawn from the Fixed Account is accounted for on a first in first out basis.
The mortality and expense risk charge for the Valuation Period is the annual mortality and expense risk charge divided by 365 multiplied by the number of days in the Valuation Period.
Splitting Units. We reserve the right to split or combine the value of Units. In effecting any such change, strict equity will be preserved and no such change will have a material effect on the benefits or other provisions of your Policy.
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Other Provisions and Benefits
Misstatement of Age or Sex (Non-Unisex Policy). If the age or (in the case of a non-unisex Policy) sex of the Insured is stated incorrectly in your Policy application or rider application, we will adjust the amount payable appropriately as described in the Policy.
If we determine that the Insured was not eligible for coverage under the Policy after we discover a misstatement of the Insured’s age, our liability will be limited to a return of Premiums paid, less any partial withdrawals, any Policy Debt, and the cost for riders.
Suicide. If the Insured, whether sane or insane, commits suicide within two years after your Policy’s Issue Date (one year if your Policy is issued in North Dakota) or two years within the date of reinstatement (one year if your Policy is issued in North Dakota), we will not pay any part of the Death Benefit Proceeds. We will pay the Beneficiary the Premiums paid, less the amount of any Policy Debt, any partial withdrawals and the cost for riders.
If the Insured, whether sane or insane, commits suicide within two years after the effective date of an increase in the Total Face Amount (one year if your Policy is issued in North Dakota), then our liability as to that increase will be the cost of insurance for that increase and that portion of the Account Value attributable to that increase. The Total Face Amount of the Policy will be reduced to the Total Face Amount that was in effect prior to the increase.
Incontestability. All statements made in the application or in a supplemental application are representations and not warranties. We relied and will continue to rely on those statements when approving the issuance, increase in face amount, increase in death benefit over Premium paid, or change in death benefit option of the Policy. In the absence of fraud, we can use no statement in defense of a claim or to cancel the Policy for misrepresentation unless the statement was made in the application or in a supplemental application. In the absence of fraud, after the Policy has been in force during the lifetime of the Insured for a period of two years from its Issue Date, we cannot contest it except for non-payment of Premiums. However, any increase in the Total Face Amount which is effective after the Issue Date will be incontestable only after such increase has been in force during the lifetime of the Insured for two years from the effective date of coverage of such increase.
Paid-Up Life Insurance. When the Insured reaches Attained Age 121 (if your Policy is in force at that time), the entire Account Value of your Policy (less outstanding Policy Debt) will be applied as a single Premium to purchase “paid-up” insurance which means all premiums have been paid and there are no additional premiums due. Outstanding Policy Debt will be repaid at this time. This repayment may be treated as a taxable distribution to you if your Policy is not a MEC. The net single Premium for this insurance will be based on the 2017 Commissioner’s Standard Ordinary, Sex Distinct, Non-Smoker Mortality Table and 4% interest. The cash value of your paid-up insurance, which initially is equal to the net single Premium, will remain in the Divisions of the Series Account in accordance with your then current allocation. While the paid-up life insurance is in effect your assets will remain in the Series Account. You may change your Division allocation instructions and you may Transfer your cash value among the Divisions. All charges under your Policy, to the extent applicable, will continue to be assessed, except we will no longer make a deduction each Policy Month for the monthly risk charge. Your death benefit will be fixed by the Code for Insured age 99. As your cash value changes based on the investment experience of the Divisions, the death benefit will increase or decrease accordingly. You may surrender the paid-up insurance Policy at any time and, if surrendered within 30 days of a Policy Anniversary, its cash value will not be less than it was on that Policy Anniversary. Please see “Federal Income Tax Considerations - Treatment When Insured Reaches Attained Age 121” below.
Supplemental Benefits. The following supplemental benefit riders are available, subject to certain limitations. An additional monthly risk charge will be assessed for each rider that is in force as part of the monthly deduction from your Account Value. If a supplemental benefit rider is terminated, the monthly risk charge for such rider will end immediately. See fee tables above.
Term Life Insurance Rider. This rider provides term life insurance on the Insured. Coverage is renewable annually until the Insured’s Attained Age 121. The amount of coverage provided under this rider varies from month to month as described below. We will pay the rider’s death benefit to the Beneficiary when we receive Due Proof of death of the Insured while this rider is in force.
This rider provides the same three death benefit options as your Policy. The option you choose under the rider must at all times be the same as the option you have chosen for your Policy. The rider’s death benefit will be determined at the beginning of each Policy Month in accordance with one of those options. For each of the options, any outstanding Policy Debt will reduce your death benefit.
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If you purchase this rider, the Total Face Amount shown on your Policy’s specifications page will be equal to the minimum amount of coverage provided by this rider plus the base face amount (which is the minimum death benefit under your Policy without the rider’s death benefit). The minimum allocation of Total Face Amount between your Policy and the rider is 10% and 90% at inception, respectively. The total Death Benefit Payable under the rider and the Policy will be determined as described in “Death Benefit” below, using the Total Face Amount shown on your Policy’s specifications page.
Coverage under this rider will take effect on the latter of:
•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 monthly risk rate for this rider will be the same as that used for the Policy and the monthly risk charge for the rider will be determined by multiplying the monthly risk rate by the rider’s death benefit. This charge will be calculated on the first day of each Policy Month and added to the Policy’s monthly risk charge.
If you purchase this rider, the sales load and return of expense charge will be proportionately lower as a result of a reduction in commission payments. Commissions payable to sales representatives for the sale of the Policy are calculated based on the total Premium payments. As a result, this rider generally is not offered in connection with any Policy with annual Premium payments of less than $100,000, except for policies issued on a guaranteed issue basis. In our discretion, we may decline to offer this rider or refuse to consent to a proposed allocation of coverage between a Policy and term rider.
If this rider is offered, the commissions will vary depending on the allocation of your coverage between the Policy and the term rider. The same initial Death Benefit will result in the highest commission when there is no term rider, with the commission declining as the portion of the Death Benefit coverage allocated to the term rider increases. Thus, the lowest commission amount is payable, and the lowest amount of sales load deducted from your Premiums will occur, when the maximum term rider is purchased.
You may terminate this rider by Request. This rider also will terminate on the earliest of the following dates:
•the date the Policy is surrendered or terminated;
•the expiration of the grace period of the Policy; or
•the death of the Insured.
Change of Insured Rider (Not available to individual Owners). This rider permits you to change the Insured under your Policy or any Insured that has been named by virtue of this rider. Before we change the Insured you must provide us with (1) a Request for the change signed by you and approved by us; (2) Evidence of Insurability for the new Insured; (3) evidence that there is an insurable interest between you and the new Insured; (4) evidence that the new Insured’s age, at the nearest birthday, is under 70 years; and (5) evidence that the new Insured was born prior to the Policy Date. We may charge a fee for administrative expenses when you change the Insured. The minimum charge is $100 per change and the maximum charge is $400 per change. When a change of Insured takes effect, Premiums will be based on the new Insured’s age, sex, mortality class and the Premium rate in effect on the Policy Date.
Report to Owner. We will maintain all records relating to the Series Account and the Divisions and the Fixed Account. We will send you a report at least once each Policy Year within 30 days after a Policy Anniversary. The report will show current Account Value, current allocation in each Division, death benefit, Premiums paid, investment experience since your last report, deductions made since the last report, and any further information that may be required by laws of the state in which your Policy was issued. It will also show the balance of any outstanding Policy loans and accrued interest on such loans. There is no charge for this report.
In addition, we will send you the financial statements of the Funds and other reports as specified in the 1940 Act. We also will mail you confirmation notices or other appropriate notices of Policy transactions quarterly or more frequently within the time periods specified by law. Please give us prompt written notice of any address change. Please read your statements and confirmations carefully and verify their accuracy and contact us promptly with any questions.
Dollar Cost Averaging. By Request, you may elect dollar cost averaging in order to purchase Units of the Divisions over a period of time. There is no charge for this service.
Dollar cost averaging permits you to automatically Transfer a predetermined dollar amount, subject to our minimum, at regular intervals from any one or more designated Divisions to one or more of the remaining, then available Divisions. The Unit Value will be determined on the dates of the Transfers. You must specify the percentage to be Transferred into each designated Division. Transfers
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may be set up on any one of the following frequency periods: monthly, quarterly, semiannually, or annually. The Transfer will be initiated one frequency period following the date of your Request. We will provide a list of Divisions eligible for dollar cost averaging that may be modified from time to time. Amounts Transferred through dollar cost averaging are not counted against the 12 free Transfers allowed in a Policy Year. You may not participate in dollar cost averaging and the rebalancer option (described below) at the same time. Participation in dollar cost averaging does not assure a greater profit, or any profit, nor will it prevent or necessarily alleviate losses in a declining market. We reserve the right to modify, suspend, or terminate dollar cost averaging at any time.
Rebalancer Option. By Request, you may elect the rebalancer option in order to automatically Transfer Account Value among the Divisions on a periodic basis. There is no charge for this service. This type of transfer program automatically reallocates your Account Value so as to maintain a particular percentage allocation among Divisions chosen by you. The amount allocated to each Division will grow or decline at different rates depending on the investment experience of the Divisions. Rebalancing does not change your Premium allocation unless that option is checked on the rebalancer Request. Your Premium allocation can also be changed by written Request at the address on the first page of this prospectus.
You may Request that rebalancing occur one time only, in which case the Transfer will take place on the date of the Request. This Transfer will count as one Transfer towards the 12 free Transfers allowed in a Policy Year.
You may also choose to rebalance your Account Value on a quarterly, semiannual, or annual basis, in which case the first Transfer will be initiated one frequency period following the date of your Request. On that date, your Account Value will be automatically reallocated to the selected Divisions. Thereafter, your Account Value will be rebalanced once each frequency period. In order to participate in the rebalancer option, your entire Account Value must be included. Transfers made with these frequencies will not count against the 12 free Transfers allowed in a Policy Year.
You must specify the percentage of Account Value to be allocated to each Division and the frequency of rebalancing. You may terminate the rebalancer option at any time by Request.
You may not participate in the rebalancer option and dollar cost averaging at the same time. Participation in the rebalancer option does not assure a greater profit, or any profit, nor will it prevent or necessarily alleviate losses in a declining market. The Company reserves the right to modify, suspend, or terminate the rebalancer option at any time.
Non-Participating. The Policy does not pay dividends.
Premiums
Policy Application, Issuance and Initial Premium. To purchase a Policy, you must submit an application to our Corporate Headquarters. We will then follow our underwriting procedures designed to determine the insurability of the applicant. We may require full underwriting, which includes a medical examination and further information, before your application may be approved. We also may offer the Policy on a simplified underwriting or guaranteed issue basis. Applicants must be acceptable risks based on our applicable underwriting limits and standards. We will not issue a Policy until the underwriting process has been completed to our satisfaction. We reserve the right to reject an application for any lawful reason or to “rate” an Insured as a substandard risk, which will result in increased monthly risk rates. The monthly risk rate also may vary depending on the type of underwriting we use.
You must specify certain information in the application, including the Total Face Amount, the death benefit option and supplemental benefits, if any. The Total Face Amount generally may not be decreased below $100,000.
Upon approval of the application, we will issue to you a Policy on the life of the Insured. A specified Initial Premium must be paid before we issue the Policy. The effective date of coverage for your Policy (which we call the “Policy Date”) will be the date we receive a Premium equal to or in excess of the specified Initial Premium after we have approved your application. If your Premium payment is received on the 29th, 30th or 31st of a month, the Policy will be dated the 28th of that month.
We generally do not accept Premium payments before approval of an application; however, at our discretion, we may elect to do so. While your application is in underwriting, if we accept your Premium payment before approval of your application, we will provide you with temporary insurance coverage in accordance with the terms of our temporary insurance agreement. In our discretion, we may limit the amount of Premium we accept and the amount of temporary coverage we provide. If we approve your application, we will allocate your Premium payment to the Series Account or Fixed Account on the Policy Date, as described below. Otherwise, we will promptly return your payment to you. We will not credit interest to your Premium payment for the period while your application is in underwriting.
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We reserve the right to change the terms or conditions of your Policy to comply with differences in applicable state law. Variations from the information appearing in this prospectus due to individual state requirements are described in supplements that are attached to this prospectus or in endorsements to the Policy, as appropriate.
Free Look Period. During the free look period (ten days or the period required by your state), you may cancel your Policy. If you purchased your Policy as a replacement of an existing policy, the free look period is extended to 30 days from the date you received it. If you decide to cancel your Policy within the free look period, you must return the Policy to our Corporate Headquarters or an agent of Great-West. Policies returned during the free look period will be void from the start.
In states that require us to return Account Value if you cancel your Policy, net Premium will be allocated to the Divisions you select on your application. In those states, we will refund your Policy Value (less surrenders, withdrawals and distributions) as of the date we received your cancellation request. This amount may be higher or lower than your Premium payments depending on the investment performance, which means you bear the investment risk until we receive your Policy and notice of cancellation.
In states that require us to return Premium if you cancel your Policy, net Premium will first be allocated to the Great-West Government Money Market Division and remain there until the next Valuation Date following the end of the free look period. In those states, we will return the greater of Account Value (less any surrenders, withdrawals and distributions already received) or the amount of Premium received as of the date we received your cancellation request.
At the end of the free look period, the Sub-Account value held in the Great-West Government Money Market Division will be allocated to the Division(s) you selected. If your Premium payments are received after 4:00 PM EST/EDT, such payments will be credited on the next Valuation Date. Regardless of when the payment is credited, you will receive the values from the date we received your payment.
During the free look period, you may change your Division allocations and your allocation percentages, however, depending on whether your state permits the immediate investment of your Premium, changes made during the free look period may not take effect until after the free look period has expired.
In your Policy, the free look period is also referred to as the right to examine.
Premium. All Premium payments must be made payable to “Great-West Life & Annuity Insurance Company” and mailed to our Corporate Headquarters. The Initial Premium will be due and payable on or before your Policy’s Issue Date. The minimum Initial Premium will vary based on various factors, including the age of the Insured and the death benefits option you select, but may not be less than $100. You may pay additional Premium payments to us in the amounts and at the times you choose, subject to the limitations described below. To find out whether your Premium payment has been received, contact us at the address or telephone number shown on the first page of this prospectus.
We reserve the right to limit the number of Premium payments we accept on an annual basis. No Premium payment may be less than $100 per Policy without our consent, although we will accept a smaller Premium payment if necessary to keep your Policy in force. We reserve the right to restrict or refuse any Premium payments that exceed the Initial Premium amount shown on your Policy. We also reserve the right not to accept a Premium payment that causes the death benefit to increase by an amount that exceeds the Premium received. Evidence of insurability satisfactory to us may be required before we accept any such Premium.
We will not accept Premium payments that would, in our opinion, cause your Policy to fail to qualify as life insurance under applicable federal tax law. If a Premium payment is made in excess of these limits, we will accept only that portion of the Premium within those limits, and will refund the remainder to you.
Net Premiums. The net Premium is the amount you pay as the Premium less any expense charges applied to Premiums. See “Charges and Deductions - Expense Charge Applied to Premium,” above.
Planned Periodic Premiums. While you are not required to make additional Premium payments according to a fixed schedule, you may select a planned periodic Premium schedule and corresponding billing period, subject to our limits. We will send you reminder notices for the planned periodic Premium, unless you Request to have reminder notices suspended. You are not required, however, to pay the planned periodic Premium; you may increase or decrease the planned periodic Premium subject to our limits, and you may skip a planned payment or make unscheduled payments. Depending on the investment performance of the Divisions you select, the planned periodic Premium may not be sufficient to keep your Policy in force, and you may need to change your planned payment schedule or make additional payments in order to prevent termination of your Policy.
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Death Benefits
Death Benefit. If your Policy is in force at the time of the Insured’s death, we will pay the Beneficiary an amount based on the death benefit option you select once we have received Due Proof of the Insured’s death. The amount payable will be:
•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 Death Benefit payable on the Insured’s death will be paid in a lump sum unless the Owner elects to receive all or a portion of the Death Benefit Proceeds under a settlement option that the Company is then offering.
 
The Company will pay interest on the Death Benefit Proceeds from the date of death. The Company will pay interest on the Death Benefit Proceeds at a rate established by the Company for funds left on deposit. Additional interest shall accrue at a rate of 10% annually beginning with the date that is 31 calendar days from the latest of (i), (ii), and (iii) to the date the claim is paid, where:
(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.
In order to meet the definition of life insurance under the Code, section 7702 of the Code defines alternative testing procedures for the minimum death benefit under a Policy. See “Federal Income Tax Considerations - Tax Status of the Policy,” below. Your Policy must qualify under the cash value accumulation test (“CVAT”).
Under the CVAT testing procedures, there is a minimum death benefit required at all times equal to your Account Value multiplied by a pre-determined factor. The factors used to determine the minimum death benefit vary by age. The factors (expressed as percentages) used for the CVAT are set forth in your Policy.
The Policy has two death benefit options.
Option 1. The “Level Death” Option. Under this option, the death benefit is –
•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.
This death benefit option should be selected if you want to minimize your cost of insurance (monthly risk charge).
Option 2. The “Coverage Plus” Option. Under this option, the death benefit is –
•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.
This death benefit option should be selected if you want to maximize your death benefit.
Your Account Value and death benefit fluctuate based on the performance of the investment options you select and the expenses and deductions charged to your account. See the “Account Value” and “Charges and Deductions” sections of this prospectus.
There is no minimum death benefit guarantee associated with this Policy.
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Changes in Death Benefit Option. After the first Policy Year, but not more than once each Policy Year, you may change the death benefit option by Request. Any change will be effective on the first day of the Policy Month following the date we approve your Request. A maximum administrative fee of $100 will be deducted from your Account Value each time you change your death benefit option.
A change in the death benefit option will not change the amount payable upon the death of the Insured on the date of change. Any change is subject to the following conditions:
•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.
Changes in Total Face Amount. You may increase or decrease the Total Face Amount of your Policy at any time within certain limits.
Minimum Changes. Each increase or decrease in the Total Face Amount must be at least $25,000. We reserve the right to change the minimum amount by which you may change the Total Face Amount.
Increases in Total Face Amount. To Request an increase in Total Face Amount, you must provide satisfactory evidence of the Insured’s insurability. Once approved by us, an increase will become effective on the Policy Anniversary following our approval of your Request, subject to the deduction of the first Policy Month’s monthly risk charge, service charge, any extra risk charge if the Insured is in a rated class and the cost of any riders.
Each increase to the Total Face Amount is considered to be a new segment to the Policy. When an increase is approved, Premium is allocated against the original Policy segment up to the seven-pay Premium limit established on the Issue Date. Any excess Premium is then allocated toward the new segment. Each segment will have a separate target Premium associated with it. The expense charge applied to Premium is higher up to target and lower for Premium in excess of the target as described in detail in the “Charges and Deductions” section of this prospectus. The expense charge formula will apply to each segment based on the target Premium for that segment. In addition, each segment will have a new incontestability period and suicide exclusion period as described in the “Other Provisions and Benefits” section of this prospectus.
Decreases in Total Face Amount. A decrease in Total Face Amount will become effective at the beginning of the next Policy Month following our approval of your Request. The Total Face Amount after the decrease must be at least $100,000.
For purposes of the incontestability provision of your Policy, any decrease in Total Face Amount will be applied in the following order:
•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.
Surrenders and Withdrawals
Surrenders. You may surrender your Policy for its Cash Surrender Value at any time while the Insured is living. If you do, the insurance coverage and all other benefits under the Policy will terminate. To surrender your Policy, contact us at the address or telephone number shown on the first page of this prospectus. We will send you the paperwork necessary for you to Request the surrender of your Policy. The proceeds of a surrender will be payable within seven days of our receipt of the completed Request.
We will determine your Cash Surrender Value (minus any charges not previously deducted) as of the end of the first Valuation Date after we receive your Request for surrender.
If you withdraw part of the Cash Surrender Value, your Policy’s death benefit will be reduced and you may incur taxes and tax penalties.
You may borrow from us using your Account Value as collateral.
A surrender may have tax consequences, including tax penalties. See “Federal Income Tax Considerations – Tax Treatment of Policy Benefits,” below.
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Partial Withdrawal. You may Request a partial withdrawal of Account Value at any time while the Policy is in force. The amount of any partial withdrawal must be at least $500 and may not exceed 90% of your Account Value less the value of the Loan Account. A partial withdrawal fee will be deducted from your Account Value for all partial withdrawals after the first made during the same Policy Year. This administrative fee is guaranteed to be no greater than $25. To Request a partial withdrawal, contact us at the address or telephone number shown on the first page of this prospectus. We will send you the paperwork necessary for you to request a withdrawal from your Policy. The proceeds of any such partial withdrawal will be payable within seven days of our receipt of the completed Request.
The Death Benefit Proceeds will be reduced by the amount of any partial withdrawals.
Your Account Value will be reduced by the amount of a partial withdrawal. The amount of a partial withdrawal will be withdrawn from the Divisions and the Fixed Account in proportion to the amounts in the Divisions and the Fixed Account bearing on your Account Value. You cannot repay amounts taken as a partial withdrawal. Any subsequent payments received by us will be treated as additional Premium payments and will be subject to our limitations on Premiums.
A partial withdrawal may have tax consequences. See “Federal Income Tax Considerations – Tax Treatment of Policy Benefits,” below.
Loans
Policy Loans. You may Request a Policy loan of up to 90% of your Account Value, decreased by the amount of any outstanding Policy Debt on the date the Policy loan is made less any accrued loan interest and less the current monthly deductions remaining for the balance of the Policy Year. When a Policy loan is made, a portion of your Account Value equal to the amount of the Policy loan will be allocated to the Loan Account as collateral for the loan. This amount will not be affected by the investment experience of the Series Account while the loan is outstanding and will be subtracted from the Divisions in proportion to the amounts in the Divisions bearing on your Account Value. The minimum Policy loan amount is $500.
The interest rate on the Policy loan will be determined annually, using a simple interest formula, at the beginning of each Policy Year. Specific loan interest rate information can be obtained by calling 888-353-2654. That interest rate will be guaranteed for that Policy Year and will apply to all Policy loans outstanding during that Policy Year. Interest is due and payable on each Policy Anniversary. Interest not paid when due will be added to the principal amount of the loan and will bear interest at the loan interest rate.
Presently, the maximum interest rate for Policy loans is the Moody’s Corporate Bond Yield Average - Monthly Average Corporates, which is published by Moody’s Investor Service, Inc. If the Moody’s Corporate Bond Yield Average ceases to be published, the maximum interest rate for Policy loans will be derived from a substantially similar average adopted by your state’s Insurance Commissioner.
We must reduce our Policy loan interest rate if the maximum loan interest rate is lower than the loan interest rate for the previous Policy Year by one-half of one percent or more.
We may increase the Policy loan interest rate but such increase must be at least one-half of one percent. No increase may be made if the Policy loan interest rate would exceed the maximum loan interest rate.
We will send you advance notice of any increase in the Policy loan rate.
Interest will be credited to amounts held in the Loan Account using a compound interest formula. The rate will be no less than the Policy loan interest rate then in effect less a maximum of 0.9%.
All payments we receive from you will be treated as Premium payments unless we have received notice, in form satisfactory to us, that the funds are for loan repayment. If you have a Policy loan, it is generally advantageous to repay the loan rather than make a Premium payment because Premium payments incur expense charges whereas loan repayments do not. Loan repayments will first reduce the outstanding balance of the Policy loan and then accrued but unpaid interest on such loans. We will accept repayment of any Policy loan at any time while the Policy is in force. Amounts paid to repay a Policy loan will be allocated to the Divisions in accordance with your allocation instructions then in effect at the time of repayment. Any amount in the Loan Account used to secure the repaid loan will be allocated back to the Sub-Accounts.
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A Policy loan, whether or not repaid, will affect the Death Benefit Proceeds, payable upon the Insured’s death, and the Account Value because the investment results of the Divisions do not apply to amounts held in the Loan Account. The longer a loan is outstanding, the greater the effect is likely to be, depending on the investment results of the Divisions while the loan is outstanding. The effect could be favorable or unfavorable.
Lapse and Reinstatement
Lapse and Continuation of Coverage. If you cease making Premium payments, coverage under your Policy and any riders to the Policy will continue until your Account Value, less any Policy Debt, is insufficient to cover the monthly deduction. When that occurs, the grace period will go into effect.
Grace Period. If the first day of a Policy Month occurs during the Valuation Period and your Account Value, less any Policy Debt, is not sufficient to cover the monthly deduction for that Policy Month, then your Policy will enter the grace period described below. If you do not pay sufficient additional Premiums during the grace period, your Policy will terminate without value.
The grace period will allow 61 days for the payment of Premium sufficient to keep the Policy in force. Any such Premium must be in an amount sufficient to cover deductions for the monthly risk charge, the service charge, the cost for any riders and any extra risk charge if the Insured is in a rated class for the next two Policy Months. Notice of Premium due will be mailed to your last known address or the last known address of any assignee of record at least 31 days before the date coverage under your Policy will cease. If the Premium due is not paid within the grace period, then the Policy and all rights to benefits will terminate without value at the end of the 61-day period. The Policy will continue to remain in force during this grace period. If the Death Benefit Proceeds become payable by us during the grace period, then any due and unpaid Policy charges will be deducted from the amount payable by us.
Termination of Policy. Your Policy will terminate on the earliest of the date we receive your Request to surrender, the expiration date of the grace period due to insufficient value or the date of death of the Insured. Upon lapse or termination, the Policy no longer provides insurance benefits.
Reinstatement. Before the Insured’s death, we will reinstate your Policy, provided that the Policy has not been surrendered, and provided further that:
•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.
A reinstated Policy’s Total Face Amount may not exceed the Total Face Amount at the time of termination. Your Account Value on the reinstatement date will reflect:
•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 effective date of reinstatement will be the date the application for reinstatement is approved by us.
Deferral of Payment. We will usually pay any amount due from the Series Account within seven days after the Valuation Date following your Request giving rise to such payment or, in the case of death of the Insured, Due Proof of such death. Payment of any amount payable from the Series Account on death, surrender, partial withdrawal, or Policy loan may be postponed whenever:
•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.
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Federal Income Tax Considerations
The following summary provides a general description of the federal income tax considerations associated with the Policy and does not purport to be complete or to cover all situations. This discussion is not intended as tax advice. You should consult counsel or other competent tax advisers for more complete information. This discussion is based upon our understanding of the Internal Revenue Service’s (the “IRS”) current interpretation of current federal income tax laws. We make no representation as to the likelihood of continuation of the current federal income tax laws or of the current interpretations by the IRS. We do not make any guarantee regarding the tax status of any Policy or any transaction regarding the Policy.
The Policy may be used in various arrangements, including non-qualified deferred compensation or salary continuance plans, split dollar insurance plans, executive bonus plans, retiree medical benefit plans and others. The tax consequences of such plans may vary depending on the particular facts and circumstances of each individual arrangement. Therefore, if the use of the Policy in any such arrangement is contemplated, you should consult a qualified tax adviser for advice on the tax attributes and consequences of the particular arrangement.
Tax Status of the Policy
A Policy has certain tax advantages when treated as a life insurance contract within the meaning of section 7702 of the Code. We believe that the Policy meets the section 7702 definition of a life insurance contract and will take whatever steps are appropriate and reasonable to attempt to cause the Policy to comply with section 7702. We reserve the right to amend the Policy to comply with any future changes in the Code, any regulations or rulings under the Code and any other requirements imposed by the IRS.
Diversification of Investments. Section 817(h) of the Code requires that the investments of each Division of the Series Account be “adequately diversified” in accordance with certain Treasury Department regulations. Disqualification of the Policy as a life insurance contract for failure to comply with the diversification requirements would result in the imposition on you of federal income tax at ordinary income tax rates with respect to the earnings allocable to the Policy in the year of the failure and all prior years prior to the receipt of payments under the Policy. We believe that the Divisions will be adequately diversified.
Policy Owner Control. In connection with its issuance of temporary and proposed regulations under Section 817(h) in 1986, the Treasury Department announced that those regulations did not “provide guidance concerning the circumstances in which investor control of the investments of a segregated asset account may cause the investor (i.e., the Owner), rather than the insurance company to be treated as the owner of the assets in the account” (which would result in the current taxation of the income on those assets to the Owner). In Revenue Ruling 2003-91, the IRS provided such guidance by describing the circumstances under which the owner of a variable contract will not possess sufficient control over the assets underlying the contract to be treated as the owner of those assets for federal income tax purposes. Rev. Rul. 2003-91 states that the determination of whether the owner of a variable contract is to be treated as the owner of the assets held by the insurance company under the contract will depend on all of the facts and circumstances. We do not believe that your ownership rights under the Policy would result in your being treated as the Owner of the assets of the Policy under Rev. Rul. 2003-91. However, we do not know whether additional guidance will be provided by the IRS on this issue and what standards may be contained in such guidance. Therefore, we reserve the right to modify the Policy as necessary to attempt to prevent an Owner from being considered the owner of a pro rata share of the assets of the Policy.
The following discussion assumes that your Policy will qualify as a life insurance contract for federal income tax purposes.
Tax Treatment of Policy Benefits
Life Insurance Death Benefit Proceeds. In general, the amount of the Death Benefit Payable under your Policy is excludible from your Beneficiary’s gross income under the Code.
If the death benefit is not received in a lump sum and is, instead, applied under a proceeds option agreed to by us and the Beneficiary, payments generally will be prorated between amounts attributable to the death benefit, which will be excludible from the Beneficiary’s income, and amounts attributable to interest (occurring after the Insured’s death), which will be includable in the Beneficiary’s income.
Tax Deferred Accumulation. Any increase in your Account Value is generally not taxable to you. If you receive or are deemed to receive amounts from the Policy before the Insured dies, see the following section entitled “Distributions” for a more detailed discussion of the taxability of such payments.
Depending on the circumstances, any of the following transactions may have federal income tax consequences:
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•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.
In addition, federal, state and local transfer and other tax consequences of ownership or receipt of Death Benefit Proceeds will depend on your circumstances and those of the named Beneficiary. Whether partial withdrawals (or other amounts deemed to be distributed) constitute income subject to federal income tax depends, in part, upon whether your Policy is considered a MEC.
Surrenders. If you surrender your Policy, you will recognize ordinary income to the extent the Account Value exceeds the “investment in the contract,” which is generally the total of Premiums and other consideration paid for the Policy, less all amounts previously received under the Policy to the extent those amounts were excludible from gross income.
Exchanges. Section 1035 of the Code provides that no gain or loss will be recognized on the exchange of one life insurance contract for another. Generally, a life insurance contract issued in an exchange for another life insurance contract is treated for purposes of qualification under section 7702 of the Code as a new issue as of the date of the exchange. A contract’s status as a MEC cannot be changed as a result of an exchange. A MEC includes any life insurance contract that is received in exchange for a MEC.
Modified Endowment Contracts. Section 7702A of the Code treats certain life insurance contracts as MECs. In general, a Policy will be treated as a MEC if total Premiums paid at any time during the first seven Policy Years exceed the sum of the net level Premiums which would have been paid on or before that time if the Policy provided for paid-up future benefits after the payment of seven level annual Premiums (“seven-pay test”). In addition, a Policy may be treated as a MEC if there is a “material change” to the Policy.
We will monitor your Premium payments and other Policy transactions and notify you if a payment or other transaction might cause your Policy to become a MEC. We will not invest any Premium or portion of a Premium that would cause your Policy to become a MEC without instruction to do so from you. We will promptly notify you or your agent of the excess cash received. We will not process the Premium payment unless we receive a MEC acceptance form or Policy change form within 48 hours of receipt of the excess funds. If paperwork is received that allows us to process the excess cash, the effective date will be the date of the new paperwork.
Further, if a transaction occurs which decreases the Total Face Amount of your Policy during the first seven years, we will retest your Policy, as of the date of its purchase, based on the lower Total Face Amount to determine compliance with the seven-pay test. Also, if a decrease in Total Face Amount occurs within seven years of a “material change,” we will retest your Policy for compliance as of the date of the “material change.” Failure to comply in either case would result in the Policy’s classification as a MEC regardless of our efforts to provide a payment schedule that would not otherwise violate the seven-pay test.
The rules relating to whether a Policy will be treated as a MEC are complex and cannot be fully described in the limited confines of this summary. Therefore, you should consult with a competent tax adviser to determine whether a particular transaction will cause your Policy to be treated as a MEC.
Exchanges. Section 1035 of the Code provides that no gain or loss will be recognized on the exchange of one life insurance contract for another. Generally, a life insurance contract issued in an exchange for another life insurance contract is treated for purposes of qualification under section 7702 of the Code as a new issue as of the date of the exchange. A contract's status as a MEC cannot be changed as a result of an exchange. A MEC includes any life insurance contract that is received in exchange for a MEC.
Distributions
Distributions Under a Policy That Is Not a MEC. If your Policy is not a MEC, a distribution is generally treated first as a tax-free recovery of the “investment in the contract,” and then as a distribution of taxable income to the extent the distribution exceeds the “investment in the contract.” An exception is made for cash distributions that occur in the first 15 Policy Years as a result of a decrease in the death benefit or other change that reduces benefits under the Policy that are made for purposes of maintaining compliance with section 7702. Such distributions are taxed in whole or part as ordinary income (to the extent of any gain in the Policy) under rules prescribed in section 7702.
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If your Policy is not a MEC, Policy loans and loans secured by the Policy are generally not treated as distributions. Such loans are instead generally treated as your indebtedness.
Finally, if your Policy is not a MEC, distributions (including distributions upon surrender), Policy loans and loans secured by the Policy are not subject to the ten percent additional tax applicable to distributions from a MEC.
Distributions Under Modified Endowment Contracts. If treated as a MEC, your Policy will be subject to the following tax rules:
•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).
Multiple Policies. All MECs issued by us (or our affiliates) to you during any calendar year will be treated as a single MEC for purposes of determining the amount of a Policy distribution that is taxable to you.
Treatment When Insured Reaches Attained Age 121. As described above, when the Insured reaches Attained Age 121, we will issue you a “paid-up” life insurance Policy. We believe that the paid-up life insurance Policy will continue to qualify as a “life insurance contract” under the Code. However, there is some uncertainty regarding this treatment. It is possible, therefore, that you would be viewed as constructively receiving the Cash Surrender Value in the year in which the Insured attains age 121 and would realize taxable income at that time, even if the Death Benefit Proceeds were not distributed at that time. In addition, any outstanding Policy Debt will be repaid at that time. This repayment may be treated as a taxable distribution to you, if your contract is not a MEC.
The IRS has issued Revenue Procedure 2018-20 providing a safe harbor concerning the application of Sections 7702 and 7702A to life insurance contracts that have mortality guarantees based on the 2001 CSO Table or the 2017 CSO Table and which may continue in force after an insured attains age 100. If a contract satisfies all the requirements of Sections 7702 and 7702A using all of the Age 100 Safe Harbor Testing Method requirements set forth in Rev. Proc. 2018-20, the IRS will not challenge the qualification of that contract under Sections 7702 and 7702A. Rev. Proc. 2018-20 also states that “No adverse inference should be drawn with respect to the qualification of a contract as a life insurance contract under §7702, or its status as not a MEC under §7702A, merely by reason of a failure to satisfy all of the requirements of the Age 100 Safe Harbor.”
Federal Income Tax Withholding. We are required to withhold 10% on that portion of a Policy distribution that is taxable, unless you direct us in writing not to do so at or before the time of the Policy distribution. As the Owner you are responsible for the payment of any taxes and early distribution penalties that may be due on Policy distributions. We may be required to withhold at a rate of 30% under the Foreign Account Tax Compliance Act (“FATCA”) on certain distributions to foreign financial institutions and non-financial foreign entities holding accounts on behalf of and/or the assets of U.S. persons unless the foreign entities provide us with certain certifications regarding their status under FATCA on the applicable IRS forms. Prospective purchasers with accounts in foreign financial institutions or non-financial foreign entities are advised to consult with a competent tax advisor regarding the application of FATCA to their purchase situation.
Actions to Ensure Compliance with the Tax Law. We believe that the maximum amount of Premiums we intend to permit for the Policies will comply with the Code definition of a “life insurance contract.” We will monitor the amount of your Premiums, and, if you pay a Premium during a Policy Year that exceeds those permitted by the Code, we will promptly refund the Premium or a portion of the Premium before any allocation to the Funds. We reserve the right to increase the death benefit (which may result in larger charges under a Policy) or to take any other action deemed necessary to ensure the compliance of the Policy with the federal tax definition of a life insurance contract.
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Trade or Business Entity Owns or Is Directly or Indirectly a Beneficiary of the Policy. Where a Policy is owned by other than a natural person, the Owner’s ability to deduct interest on business borrowing unrelated to the Policy can be impacted as a result of its ownership of cash value life insurance. No deduction will be allowed for a portion of a taxpayer’s otherwise deductible interest expense unless the Policy covers only one individual, and such individual is, at the time first covered by the Policy, a 20 percent owner of the trade or business entity that owns the Policy, or an officer, director, or employee of such trade or business.
Although this limitation generally does not apply to Policies held by natural persons, if a trade or business (other than one carried on as a sole proprietorship) is directly or indirectly the Beneficiary under a Policy (e.g., pursuant to a split-dollar agreement), the Policy will be treated as held by such trade or business. The effect will be that a portion of the trade or business entity’s deduction for its interest expenses will be disallowed unless the above exception for a 20 percent owner, employee, officer or director applies.
The portion of the entity’s interest deduction that is disallowed will generally be a pro rata amount which bears the same ratio to such interest expense as the taxpayer’s average unborrowed cash value bears to the sum of the taxpayer’s average unborrowed cash value and average adjusted bases of all other assets. Any corporate or business use of the life insurance should be carefully reviewed by your tax adviser with attention to these rules as well as any other rules and possible tax law changes that could occur with respect to corporate-owned life insurance.
In Revenue Ruling 2011-9, the IRS held that the status of an insured as an employee “at the time first covered” for purposes of Section 264(f) does not carry over from a contract given up in a Section 1035 tax-free exchange to a contract received in such an exchange. Therefore, the pro rata interest expense disallowance exception of Section 264(f)(4) does not apply to new Policies received in Section 1035 tax-free exchanges unless such Policies also qualify for the exception provided by Section 264(f)(4) of the Code.
Employer-Owned Life Insurance. Section 101(j) of the Code denies the tax-free treatment of death benefits payable under an employer-owned life insurance contract unless certain notice and consent requirements are met and either (1) certain rules relating to the insured employee’s status are satisfied or (2) certain rules relating to the payment of the “amount received under the contract” to, or for the benefit of, certain beneficiaries or successors of the insured employee are satisfied. The new rules apply to life insurance contracts owned by corporations (including S corporations), individual sole proprietors, estates and trusts and partnerships that are engaged in a trade or business. Any business contemplating the purchase of a Policy on the life of an employee should consult with its legal and tax advisers regarding the applicability of the new legislation to the proposed purchase.
Split Dollar Life Insurance. A tax adviser should also be consulted with respect to the split dollar regulations if you have purchased or are considering the purchase of a Policy for a split dollar insurance plan. Any business contemplating the purchase of a new life insurance contract or a change in an existing contract should consult a tax adviser.
Other Employee Benefit Programs. Complex rules may apply when a Policy is held by an employer or a trust, or acquired by an employee, in connection with the provision of employee benefits. These Policy owners also must consider whether the Policy was applied for by, or issued to, a person having an insurable interest under applicable state law, as the lack of insurable interest may, among other things, affect the qualification of the Policy as life insurance for federal income tax purposes and the right of the Beneficiary to death benefits. Employers and employer-created trusts may be subject to reporting, disclosure and fiduciary obligations under the Employee Retirement Income Security Act of 1974, as amended. You should consult your legal advisor.
Policy Loan Interest. Generally, no tax deduction is allowed for interest paid or accrued on any indebtedness under a Policy.
Change of Insured Rider. The Company makes no representations concerning the tax effects of the change of insured rider. Owners are responsible for seeking tax counsel regarding the tax effects of the Rider. The Company reserves the right to refund cash value exceeding allowable limits for tax exempt purposes, or that would be charged as current interest income to Owners.
Investment Income Surtax. Taxable distributions from life insurance policies are considered “investment income” for purposes of the investment income surtax on investment income. Thus, in certain circumstances, a 3.8% tax may be applied to some or all of the taxable portion of distributions (e.g., earnings) to individuals, trusts, and estates whose income exceeds certain threshold amounts as follows: an amount equal to the lesser of (a) “net investment income”; or (b) the excess of a taxpayer’s modified adjusted gross income over a specified income threshold ($250,000 for married couples filing jointly, $125,000 for married couples filing separately, and $200,000 for everyone else). The IRS has issued regulations that treat taxable distributions from life insurance policies as “Net investment income.” Please discuss the impact of the Investment Income Surtax on you with a competent tax advisor.
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Our Taxes. We are taxed as a life insurance company under part I of subchapter L of the Code. The operations of the Series Account are taxed as part of our operations. Investment income and realized capital gains are not taxed to the extent that they are applied under the Policies. As a result of the Tax Cuts and Jobs Act of 2017, we are generally required to capitalize and amortize certain Policy acquisition expenses over a fifteen year period rather than currently deducting such expenses. This so-called “deferred acquisition cost” tax (“DAC tax”) applies to the deferred acquisition expenses of a Policy and results in a significantly higher corporate income tax liability for Great-West. We reserve the right to adjust the amount of a charge to Premium to compensate us for these anticipated higher corporate income taxes.
A portion of the expense charges applied to Premium is used to offset the federal, state or local taxes that we incur which are attributable to the Series Account or the Policy. We reserve the right to adjust the amount of this charge.
Summary
•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.
Corporate Tax Shelter Requirements
The Company does not believe that any purchase of a Policy by an Owner pursuant to this offering will be subject to the tax shelter registration, customer list or reporting requirements under the Code and implementing regulations. All Owners that are corporations are advised to consult with their own tax and/or legal counsel and advisers, to make their own determination as to the applicability of the disclosure requirements of IRC § 6011 and Treas. Reg. Section 1.6011-4 to their federal income tax returns.
Legal Proceedings
There are no pending legal proceedings that would have an adverse material effect on the Series Account or on IDI. Great-West is engaged in various kinds of routine litigation that, in our judgment, is not material to its total assets or material with respect to the Series Account.
Legal Matters
Pursuant to Commodity Futures Trading Commission Rule 4.5, Great-West has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act. Therefore, it is not subject to registration or regulation as a commodity pool operator under the Commodity Exchange Act.
The law firm of Carlton Fields, P.A., 1025 Thomas Jefferson St., N.W., Suite 400 West, Washington, D.C. 20007-5208, serves as special counsel to Great-West with regard to the federal securities laws.
Cyber Security Risks
Because our variable life insurance contract business is highly dependent upon the effective operation of our computer systems and those of our business partners, our business is vulnerable to disruptions from utility outages and susceptible to operational and information security risks resulting from information system failures (e.g., hardware and software malfunctions), cyber-attacks, and similar incidents or events. These risks include, among other things, the theft, loss, misuse, corruption, and destruction of data maintained online or digitally, denial of service on our website and other operational disruption, unauthorized access to or release of confidential Owner information, and unintentional events and occurrences. Such system failures, cyber-attacks, and similar incidents or events affecting us, the Funds, intermediaries and other affiliated or third-party service providers or business partners may adversely affect us and your Policy value. For instance, system failures, cyber-attacks, and similar incidents or events may interfere with our processing of Policy transactions, including the processing of Transfer Requests from our website or with the portfolios, impact our ability to calculate Unit Values, cause the release, loss, and possible destruction of confidential owner or business information, impede order processing, subject us and/or our service providers, intermediaries, and business partners to regulatory inquiries and proceedings (possibly resulting in fines and/or penalties), litigation, financial losses and other costs, and/or cause reputational damage. Cyber security risks may also impact the issuers of securities in which the Funds invest, which may cause the Funds underlying your Policy to
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lose value. The constant change in technologies and sophistication and activities of hackers and others continue to pose new and significant cyber security threats. While there can be no assurance that we or the Funds or our service providers or business partners will avoid these risks at all times or avoid losses affecting your Policy due to cyber-attacks, information security breaches, or similar incidents or events in the future, we take reasonable steps to mitigate these risks and secure our systems from such risks.
Abandoned Property Requirements
Every state has unclaimed property laws that generally provide for escheatment to the state of unclaimed property (including proceeds of life insurance policies) under various circumstances. This “escheatment” is revocable, however, and the state is obligated to pay the applicable proceeds if the property owner steps forward to claim it with the proper documentation. To help prevent such escheatment, it is important that you keep your policy and other information on file with us up to date, including the names, contact information, and identifying information for owners, beneficiaries, and other payees. Such updates should be communicated by writing to the Company at 8515 E. Orchard Road, 9T2, Greenwood Village, CO 80111, by calling 888-353-2654, by sending an email to gwexecbenefits@greatwest.com or via the web at www.greatwest.com/executivebenefits.
Financial Statements
Great-West’s financial statements, which are included in the Statement of Additional Information (“SAI”), should be considered only as bearing on our ability to meet our obligations with respect to the death benefit and our assumption of the mortality and expense risks. They should not be considered as bearing on the investment performance of the Fund shares held in the Series Account.
Independent Registered Public Accounting Firm
The financial statements and financial highlights of each of the investment divisions of the COLI VUL-2 Series Account of Great-West Life & Annuity Insurance Company included in the Statement of Additional Information have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report appearing in the Registration Statement. Such financial statements are included in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing.
Independent Auditors
The statutory-basis financial statements of Great-West Life & Annuity Insurance Company included in the Statement of Additional Information included in the Registration Statement have been audited by Deloitte & Touche LLP, independent auditors, as stated in their report appearing therein, and are included in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing.
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Appendix A – Glossary of Terms
Unless otherwise defined in this prospectus, capitalized terms shall have the meaning set forth below.
Account Value – The sum of the value of your interests in the Divisions, the Fixed Account and the Loan Account. This amount reflects: (1) the Premiums you pay; (2) the investment performance of the Divisions you select; (3) any Policy loans or partial withdrawals; (4) your Loan Account balance; and (5) the charges we deduct under the Policy.
Attained Age – The age of the Insured, nearest birthday, as of the Policy Date and each Policy Anniversary thereafter.
Beneficiary – The person(s) named by the Owner to receive the Death Benefit Proceeds upon the death of the Insured.
Business Day – Any day that we are open for business. We are open for business every day that the NYSE is open for trading.
Cash Surrender Value – is equal to:
(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.
Corporate Headquarters – Great-West Life & Annuity Insurance Company, 8515 E. Orchard Road
Greenwood Village, Colorado 80111
Telephone: (303) 737-3000, or such other address as we may hereafter specify to you by written notice.
Death Benefit Proceeds – The amount determined in accordance with the terms of the Policy which is payable at the death of the Insured. This amount is the death benefit, decreased by the amount of any outstanding Policy Debt, and increased by the amounts payable under any supplemental benefits.
Divisions – Divisions into which the assets of the Series Account are divided, each of which corresponds to and contains shares of a Fund. Divisions may also be referred to as “investment divisions” or “Sub-Accounts” in the prospectus, SAI or Series Account financial statements.
Due Proof – Such evidence as we may reasonably require in order to establish that Death Benefit Proceeds are due and payable.
Effective Date – The date on which the first Premium payment is credited to the Policy.
Evidence of Insurability – Information about an Insured that is used to approve or reinstate this Policy or any additional benefit.
Fixed Account – A division of our General Account that provides a fixed interest rate. This account is not part of and does not depend on the investment performance of the Sub-Accounts.
Fund – An underlying mutual fund in which a Division invests. Each Fund is an investment company registered with the SEC or a separate investment series of a registered investment company.
General Account – All of our assets other than those held in a separate investment account.
Initial Premium – The initial Premium amount specified in a Policy.
Insured – The person whose life is insured under the Policy.
Issue Age – The Insured’s age as of the Insured’s birthday nearest the Policy Date.
Issue Date – The date on which we issue a Policy.
Loan Account – All outstanding loans plus credited loan interest held in the General Account of the Company. The Loan Account is not part of the Series Account.
A-1
Loan Account Value – The sum of all outstanding loans plus credited loan interest for this Policy.
MEC – Modified Endowment Contract. For more information regarding MECs, see “Modified Endowment Contracts” above.
NYSE – New York Stock Exchange.
Owner – The person(s) named in the application who is entitled to exercise all rights and privileges under the Policy, while the Insured is living. The purchaser of the Policy will be the Owner unless otherwise indicated in the application.
Policy Anniversary – The same day in each succeeding year as the day of the year corresponding to the Policy Date.
Policy Date – The effective date of coverage under this Policy. The Policy Months, Policy Years and Policy Anniversaries are measured from the Policy Date.
Policy Debt – The principal amount of any outstanding loan against the Policy plus accrued but unpaid interest on such loan.
Policy Month – The one-month period commencing on the same day of the month as the Policy Date.
Policy Year – The one-year period commencing on the Policy Date or any Policy Anniversary and ending on the next Policy Anniversary.
Premiums – Amounts received and allocated to the Sub-Account(s) and the Fixed Account prior to any deductions.
Request – Any instruction in a form, written, telephoned or computerized, satisfactory to the Company and received in good order at the Corporate Headquarters from the Owner or the Owner’s assignee (as specified in a form acceptable to the Company) or the Beneficiary, (as applicable) as required by any provision of this Policy or as required by the Company. The Request is subject to any action taken or payment made by the Company before it was processed.
SEC – The United States Securities and Exchange Commission.
Series Account – The segregated investment account established by the Company as a separate account under Colorado law named the COLI VUL-2 Series Account. It is registered as a unit investment trust under the 1940 Act.
Sub-Account – Sub-division(s) of the Owner’s Account Value containing the value credited to the Owner from the Series Account. Sub-Accounts may also be referred to as “investment divisions” or “Divisions” in the prospectus, SAI or Series Account financial statements.
Surrender Benefit – Account Value less any outstanding Policy loans and less accrued loan interest.
Total Face Amount – The amount of life insurance coverage you request as specified in your Policy.
Transaction Date – The date on which any Premium payment or Request from the Owner will be processed by the Company. Premium payments and Requests received after 4:00 p.m. EST/EDT will be deemed to have been received on the next Business Day. Requests will be processed and the Sub-Account value will be valued on the day that the Premium payments or Request is received and the NYSE is open for trading.
Transfer – The moving of money from one or more Division(s) or the Fixed Account to one or more Division(s) or the Fixed Account.
Unit – An accounting unit of measurement that we use to calculate the value of each Division.
Unit Value – The value of each Unit in a Division.
Valuation Date – The date on which the net asset value of each Fund is determined. A Valuation Date is each day that the NYSE is open for regular business. The value of a Division’s assets is determined at the end of each Valuation Date (generally 4:00 p.m. EST/EDT). To determine the value of an asset on a day that is not a Valuation Date, the value of that asset as of the end of the previous Valuation Date will be used.
A-2
Valuation Period – The period of time from one determination of Unit Values to the next following determination of Unit Values. We
will determine Unit Value for each Valuation Date as of the close of the NYSE (generally 4:00 p.m. EST/EDT) on that Valuation Date.
A-3
The SAI is a document that includes additional information about the Series Account, including the financial statements of both Great-West and of the Series Account. The SAI is incorporated by reference as a matter of law into the prospectus, which means that it is legally part of the prospectus. The SAI is available upon request, without charge. To request the SAI or other information about the Policy, or to make any inquiries about the Policy, contact Great-West toll-free at 888-353-2654 or via email at www.greatwest.com/executivebenefits.
 
Reports and other information about the Series Account are available on the SEC’s website at http://www.sec.gov.
Investment Company Act File No. 811-09201
A-4

Great-West Life & Annuity Insurance Company
A Stock Company
8515 E. Orchard Road
Greenwood Village, Colorado 80111
Telephone: (303) 737-3000
Executive Benefit VUL  — Prospectus
A Flexible Premium Variable Universal Life Insurance Policy
offered by Great-West Life & Annuity Insurance Company in
connection with its COLI VUL-2 Series Account
Internet Delivery of Shareholder Reports: As permitted by regulations adopted by the Securities and Exchange Commission (“SEC”), paper copies of the Fund's annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website ( https://www.greatwestinvestments.com ), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from your financial intermediary electronically by contacting your financial intermediary.
You may elect to receive all future reports in paper free of charge. You can call (866) 345-5954 or make elections online at https://www.fundreports.com to let your financial intermediary know you wish to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account.
This prospectus describes a flexible premium variable universal life insurance policy (the “Policy”) offered by Great-West Life & Annuity Insurance Company (“Great-West,” “Company,” “we,” “our” or “us”). The Policy offered under this prospectus is no longer issued to new purchasers. The Policy offered under this prospectus has not been offered for sale since April 30, 2011; however, you may make additional Premium payments as permitted under your Policy.
The Policy is designed for use by corporations and employers to provide life insurance coverage in connection with, among other things, deferred compensation plans and employer-financed insurance purchase arrangements. The Policy is designed to meet the definition of a “life insurance contract” for federal income tax purposes.
The Policy allows “you,” the Owner, within certain limits to:
•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.
This prospectus contains important information you should understand before purchasing a Policy, including a description of the material rights and obligations under the Policy. We use certain special terms that are defined in Appendix A. Your Policy and any endorsements are the formal contractual agreement between you and the Company. It is important that you read the Policy and endorsements which reflect other variations. You should keep this prospectus on file for future reference. The Policy that we are currently issuing, Executive Benefit VUL II, is offered under a separate prospectus.
The Policy and Fixed Account endorsement (and optional Term Life Insurance Rider) that we issued until April 30, 2011 became available on January 1, 2009. The Policy and optional Term Life Insurance Rider described in this prospectus are based on state-required 2001 CSO mortality tables, as defined below. Before January 1, 2009, we issued an earlier version of the Policy (“Pre-2009 Policy”) and optional Rider, which were based on 1980 CSO mortality tables. Many of the Pre-2009 Policies and optional Riders still
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remain outstanding. The Pre-2009 Policy differs somewhat from the Policy that we issued until April 30, 2011, and certain of the information in this prospectus, therefore, does not apply to those Pre-2009 Policies. Appendix B to this prospectus explains the information that applies instead to the Pre-2009 Policy and Pre-2009 optional Rider. Therefore, if you own a Pre-2009 Policy (issued prior to January 1, 2009), you should also refer to Appendix B at the end of this prospectus for information about how your Pre-2009 Policy and optional Rider differs from the Policy that we issued until April 30, 2011.
The Securities and Exchange Commission has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
The date of this prospectus is May 10, 2021
ii
TABLE OF CONTENTS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
iii
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
iv
Summary of the Policy and its Benefits
This is a summary of some of the most important features of your Policy. The Policy is more fully described in the remainder of this prospectus. Please read this prospectus carefully. Unless otherwise indicated, the description of the Policy in this prospectus assumes that the Policy is in force, there is no Policy Debt and current federal tax laws apply.
1. Corporate-Owned Variable Life Insurance. We will issue Policies to corporations and employers and to certain individuals to provide life insurance coverage in connection with, among other things, deferred compensation plans and employer-financed insurance purchase arrangements. We will issue Policies on the lives of prospective Insureds who meet our underwriting standards.
2. The Series Account. We have established a separate account to fund the variable benefits under the Policy. The assets of the Series Account are insulated from the claims of our general creditors.
3. Premium Payments. You must pay us an Initial Premium to put your Policy in force. The minimum Initial Premium will vary based on various factors, including the age of the Insured and the death benefits option you select, but may not be less than $100.00. Thereafter, you choose the amount and timing of Premium payments, within certain limits.
4. Fixed Account. You may allocate some or all of your net payments and/or make Transfers from the Sub-Accounts to the Fixed Account. The Fixed Account is part of our General Account. We own the assets in the General Account, and we use these assets to support our insurance and annuity obligations other than those funded by our separate accounts. These Fixed Account assets are subject to our general liabilities from business operations. Subject to applicable law, we have sole discretion over investment of the Fixed Account assets. We bear the full investment risk for all amounts allocated or transferred to the Fixed Account. The Policy gives the Company the right to impose limits on the amount each Owner can invest in the Fixed Account and such limits are subject to change at the sole discretion of the Company.
We guarantee that the amounts allocated to the Fixed Account will be credited interest at a net effective annual interest rate of at least 3.00%, the minimum interest rate provided in your Policy. At our discretion, we will review the interest rate at least once a year. We may reset the interest rate monthly. The Fixed Account is not affected by the investment performance of the Sub-Accounts. Policy value in the Fixed Account will be reduced by the Policy fees and charges we deduct and the effects of any Policy transactions (loans, withdrawals, and Transfers) on your Policy value in the Fixed Account.
5. Free Look Period. You may return your Policy to us for any reason within ten days of receiving it, or such longer period as required by applicable state law (in some states, up to 30 days for replacement policies), and depending on state law, receive (i) the greater of your Premiums, less any withdrawals, or your Account Value, or (ii) your Account Value plus the return of any expense charges deducted. The money you contribute to the Policy will be invested at your direction, except that in some states during your free look period your Premiums will be allocated to the Great-West Government Money Market Division.
6. Investment Options and Funds. You may allocate your net Premium payments among the available investment divisions (“Divisions”) or the Fixed Account.
Each Division invests exclusively in shares of a single Fund. Each Fund has its own distinct investment objective and policies, which are described in the accompanying prospectuses for the Funds.
You may Transfer amounts from one Division to another or the Fixed Account, subject to the restrictions described herein.
7. Death Benefit. You may choose from among two death benefit options –
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.
For each option, the death benefit may be greater if necessary to satisfy federal tax law requirements.
We will deduct any outstanding Policy Debt and unpaid Policy charges before we pay a death benefit. In addition, prior partial withdrawals may reduce the Death Benefit Proceeds under the first option.
At any time, you may increase or decrease the Total Face Amount, subject to our approval and other requirements set forth in the Policy.
1
After the first Policy Year, you may change your death benefit option once each Policy Year.
8. Account Value. Your Account Value will reflect -
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.
9. Accessing Your Account Value. You may borrow from us using your Account Value as collateral. Loans may be treated as taxable income if your Policy is a “modified endowment contract” (“MEC”) for federal income tax purposes and you have had positive net investment performance.
There are no surrender charges associated with your Policy. You may surrender your Policy for its Cash Surrender Value plus return of expense charge, if applicable. The return of expense charge is a percentage of your Account Value and is described in greater detail in “Charges and Deductions” below.
You may withdraw a portion of your Account Value at any time while your Policy is in force.
A withdrawal may reduce your death benefit.
We will charge an administrative fee not greater than $25 per withdrawal on partial withdrawals after the first in a Policy Year.
10. Supplemental Benefits. The following optional riders are available –
1.
 term life insurance; and
2.
 change of Insured (not available to individual Owners).
We will deduct the cost, if any, of the rider(s) from your Account Value on a monthly basis.
11. Paid-Up Life Insurance. If the Insured reaches Attained Age 121 and your Policy is in force, the Account Value, less Policy Debt, will be applied as a single Premium to purchase “paid-up” insurance. “Paid-up” insurance is a policy where all premiums have been paid and there are no additional premiums due. Your Account Value will remain in the Series Account allocated to the Divisions or the Fixed Account in accordance with your instructions. The death benefit under this paid-up insurance will be fixed by the Internal Revenue Code of 1986, as amended (“Code”) for Insureds age 99. As your Account Value changes based on the investment experience of the Divisions, the death benefit will increase or decrease accordingly.
12. Reinstatement. If your Policy terminates due to insufficient value, we will reinstate it within three years at your Request, subject to certain conditions.
13. Surrenders. You may surrender your Policy for its Cash Surrender Value at any time while the Insured is living. If you do, the insurance coverage and all other benefits under the Policy will terminate.
If you withdraw part of the Cash Surrender Value, your Policy’s death benefit may be reduced and you may incur taxes and tax penalties.
14. Partial Withdrawal. You may Request a partial withdrawal of Account Value at any time while the Policy is in force. The amount of any partial withdrawal must be at least $500 and may not exceed 90% of your Account Value less the value of the Loan Account.
The Death Benefit Proceeds and your Account Value will be reduced by the amount of any partial withdrawals.
15. Policy Loans. You may borrow from us using your Account Value as collateral. You may Request a Policy loan of up to 90% of your Account Value, decreased by the amount of any outstanding Policy Debt on the date the Policy loan is made.
The minimum Policy loan amount is $500.
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16. Changes in Total Face Amount. You may increase or decrease the Total Face Amount of your Policy at any time. Each increase or decrease in the Total Face Amount must be at least $25,000. Minimum face amount is $100,000.
17. Target Premium. Your target Premium is actuarially determined and will depend on the initial Total Face Amount of your Policy, your Issue Age, your sex (except in unisex states), and rating class (if any) and equals the maximum Premium payable such that the Policy remains compliant with the Code. The target Premium is used to determine your expense charged applied to the Premium and the sales compensation we pay. Payment of the target premium does not guarantee that your Policy will not lapse, and you may need to pay additional Premiums to keep your Policy in force. Each increase to the Total Face Amount is considered to be a new segment to the Policy. Each segment will have a separate target Premium associated with it.
18. State Variations. Policies issued in your state may provide different features and benefits from, and impose different costs than, those described in this prospectus because of state law variations. These differences include, among other things, free look rights, issue age limitations, and the general availability of riders. This prospectus describes the material rights and obligations of an Owner, and the maximum fees and charges for all Policy features and benefits are set forth in the fee table of this prospectus. See your Policy for specific variations because any such state variations will be included in your Policy or in riders or endorsements attached to your Policy. See your agent or contact us for specific information that is applicable to your state.
Policy Risks
1. Account Value Not Guaranteed. Your Account Value is not guaranteed. Your Account Value fluctuates based on the performance of the investment options you select. The investment options you select may not perform to your expectations. Your Account Value may also be affected by charges under your Policy.
2. Not Suitable as Short-Term Savings Vehicle. The Policy is designed for long-term financial planning. Accordingly, you should not purchase the Policy if you need access to the Account Value within a short time. Before purchasing a Policy, consider whether the long-term nature of the Policy is consistent with the purposes for which it is being considered.
3. Risk of Policy Lapse. Your Policy may terminate if your Account Value at the beginning of any Policy Month is insufficient to pay the Policy’s monthly charges.
If your Policy would terminate due to insufficient value, we will send you notice and allow you a 61-day grace period.
If, within the grace period, you do not make a Premium payment sufficient to cover all accrued and unpaid charges and deductions, your Policy will terminate at the end of the grace period without further notice.
4. Limitations on Withdrawals. Partial withdrawals of Account Value are permitted at any time the Policy is in force. As noted above, the amount of any partial withdrawal must be at least $500 and may not exceed 90% of your Account Value less the value of the Loan Account. A maximum administrative fee of $25 will be deducted from your Account Value for all partial withdrawals after the first made in the same Policy Year. Please note that withdrawals reduce your Account Value and your Death Benefit Proceeds. In addition, withdrawals may have tax consequences.
5. Limitations on Transfers. Subject to our rules as they may exist from time to time, you may at any time Transfer to another Division all or a portion of the Account Value allocated to a Division. Certain limitations apply to Transfers into and out of the Fixed Account. See “Fixed Account Transfers” below. In addition, we do not intend to enforce the restrictions on Transfers set forth in your Policy except in cases of identified market timing unless the Sub-Account has additional restrictions that are noted in the respective Fund’s prospectus. See “Market Timing & Excessive Trading” below.
6. Limitations or Charges on Surrender of Policy. You may surrender your Policy for its Cash Surrender Value at any time while the Insured is living. Upon surrender of your Policy, the insurance coverage and all other benefits under the Policy will terminate.
There are no surrender charges associated with your Policy. However, the surrender of your Policy may have tax consequences.
7. Risks of Taking a Policy Loan. As noted above, you may Request a Policy loan of up to 90% of your Account Value, decreased by the amount of any outstanding Policy Debt on the date the Policy loan is made. The minimum Policy loan amount is $500.
Taking a Policy loan may increase the risk that your Policy will lapse, will reduce your Account Value, and may reduce the death benefit. In addition, if your Policy is a MEC for tax purposes, taking a Policy loan may have tax consequences.
3
8. Adverse Tax Consequences. Your Policy is structured to meet the definition of a life insurance contract under the Code. Current federal tax law generally excludes all death benefits from the gross income of the Beneficiary of a life insurance policy. Generally, you are not taxed on any increase in the Account Value until it is withdrawn, but are taxed on surrender proceeds and the proceeds of any partial withdrawals if those amounts, when added to all previous non-taxable distributions, exceed the total Premium paid. Amounts received upon surrender or withdrawals in excess of Premiums are treated as ordinary income.
Under certain circumstances, a Policy may become a MEC for federal tax purposes. This may occur if you reduce the Total Face Amount of your Policy or pay excessive Premiums. We will monitor your Premium payments and other Policy transactions and notify you if a payment or other transaction might cause your Policy to become a MEC without your written permission. We will not invest any Premium or portion of a Premium that would cause your Policy to become a MEC, but instead will promptly refund the money to you. If you elect to have a MEC contract, you can return the money to us with a signed form of acceptance.
Under current tax law, Death Benefit Proceeds under MECs generally are excluded from the gross income of the Beneficiary. Withdrawals and Policy loans, however, are treated first as income, to the extent of any gain, and then as a return of Premium. The income portion of the distribution is includable in your taxable income and taxed at ordinary income tax rates. A 10% penalty tax is also generally imposed on the taxable portion of any amount received before age 59 1∕2.
9. General Account Risk. Great-West’s general obligations and any guaranteed benefits under the Policy are supported by our General Account (and not by the Series Account) and are subject to Great-West’s claims-paying ability. An Owner should look to the financial strength of Great-West for its claims-paying ability. Assets in the General Account are not segregated for the exclusive benefit of any particular Policy or obligation. General Account assets are also available to Great-West’s general creditors and the conduct of our routine business activities, such as the payment of salaries, rent and other ordinary business expenses. For more information about Great-West’s financial strength, you may review our financial statements and/or check our current rating with one or more of the independent sources that rate insurance companies for their financial strength and stability. Such ratings are subject to change and have no bearing on the performance of the Funds.
Fund Risks
The Policy currently offers several variable investment options, each of which is a Division of the Series Account. Each Division uses its assets to purchase, at their net asset value, shares of a Fund. The Divisions are referred to as “variable” because their investment experience depends upon the investment experience of the Funds in which they invest.
We do not guarantee that the Funds will meet their investment objectives. Your Account Value may increase or decrease in value depending on the investment performance of the Funds. You bear the risk that those Funds may not meet their investment objectives. A comprehensive discussion of the risks of each Fund may be found in each Fund’s prospectus, including detailed information concerning investment objectives, strategies, and their investment risk. You may obtain a copy of the Fund prospectuses without charge by contacting us at 888-353-2654. If you received a summary prospectus for a Fund, please follow the directions on the first page of the summary prospectus to obtain a copy of the Fund’s prospectus.
4
Fee Tables
The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the Policy. The first table describes the fees and expenses that you will pay at the time that you buy the Policy, surrender the Policy, or Transfer cash value between investment options.
Transaction Fees 
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.
The next table describes the fees and expenses that you will pay periodically during the time that you own the Policy, not
including Fund fees and expenses.
5
Periodic Charges Other Than Fund Operating Expenses 
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.
6
 
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.
The next table shows the minimum and maximum total operating expenses charged by the Funds that you may pay periodically during the time that you own the Policy. More detail concerning each Fund’s fee and expenses is contained in the prospectus for each Fund.
Total Annual Fund Operating Expenses4
(Expenses that are deducted from Fund assets, including management fees,
distribution and/or service (12b-1) fees, and other expenses) 
 
Minimum
Maximum
Total Annual Fund Operating
0.10%
2.45%
THE ABOVE EXPENSES FOR THE FUNDS WERE PROVIDED BY THE FUNDS. WE HAVE NOT INDEPENDENTLY VERIFIED THE ACCURACY OF THE INFORMATION.
3. The Change of Insured Rider will vary based on individual characteristics. The charge 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 by contacting our Service Center at 888-353-2654.
4 Expenses are shown as a percentage of a Fund’s average net assets as of December 31, 2020. The expenses above include fees and expenses incurred indirectly by the Great-West Profile Funds and the Great-West Lifetime Funds as a result of investing in shares of acquired funds, if any. The range of expenses above does not show the effect of any fee waiver or expense reimbursement arrangements. The advisers and/or other service providers of certain Funds have agreed to waive their fees and/or reimburse the Funds’ expenses in order to keep the expenses below specified limits. In some cases, these expense limitations may be contractual. In other cases, these expense limitations are voluntary and may be terminated at any time. Please see the prospectus for each Fund for information regarding the expenses for each Fund, including fee reduction and/or expense reimbursement arrangements, if applicable. The management fees and other expenses of the Funds are more fully described in the Fund prospectuses.
7
Description of Depositor, Registrant, and Funds
Great-West Life & Annuity Insurance Company
Great-West is a stock life insurance company organized under the laws of the state of Colorado. Our offices are located at 8515 East Orchard Road, Greenwood Village, Colorado 80111.
We are authorized to do business in 49 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands and Guam. We issue individual and group life insurance policies and annuity contracts and accident and health insurance policies.
Great-West is a direct wholly-owned subsidiary of GWL&A Financial Inc. (“GWL&A Financial”), a Delaware 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. Lifeco operates in the United States primarily through the Company and through Putnam Investments, LLC (“Putnam”), and in Canada and Europe through The Canada Life Assurance Company (“CLAC”) and Irish Life Group Limited and their respective subsidiaries. Lifeco is a subsidiary of Power Financial Corporation (“Power Financial”), a Canadian holding company with substantial interests in the financial services industry. Power Corporation of Canada (“Power Corporation”), a Canadian holding and management company, has voting control of Power Financial. The Desmarais Family Residuary Trust, through a group of private holding companies that it controls, has voting control of Power Corporation.
The shares of Lifeco and Power Corporation are traded publicly in Canada on the Toronto Stock Exchange.
On June 3, 2019, Great-West entered into an indemnity reinsurance agreement (the “Agreement”) with Protective Life Insurance Company (“Protective”) to indemnify and reinsure the obligations of Great-West under substantially all of its non-participating individual life insurance and annuity business and group life and health business, including this Policy.
Under the Agreement, as of October 5, 2020, Protective will provide administration and customer service for this Policy in accordance with its terms and contidions. Great-West will continue its present role as the issuer of your Policy and will remain responsible for the administration and customer service of the Policy. All of your rights and benefits under your Policy and Great-West’s obligations under the Policy remain unchanged.
The Series Account
The Series Account is a segregated asset account of Great-West. We use the Series Account to fund benefits payable under the Policy. The Series Account may also be used to fund benefits payable under other life insurance policies issued by us.
We own the assets of the Series Account, which we hold separate and apart from our General Account assets. The income, gains or losses, realized or unrealized, from assets allocated to the Series Account are credited to or charged against the Series Account without regard to our other income, gains or losses. The income, gains, and losses credited to, or charged against, the Series Account reflect the Series Account’s own investment experience and not the investment experience of Great-West’s other assets. The assets of the Series Account may not be used to pay any liabilities of Great-West other than those arising from the Policies (and any other life insurance policies issued by us and funded by the Series Account).
In calculating our corporate income tax liability, we derive certain corporate income tax benefits associated with the investment of company assets, including Series Account assets that are treated as company assets under applicable income tax law. These benefits, which reduce our overall corporate income tax liability may include dividends received deductions and foreign tax credits which can be material. We do not pass these benefits through to the Series Account or our other separate accounts, principally because: (i) the great bulk of the benefits results from the dividends received deduction, which involves no reduction in the dollar amount of dividends that the Series Account receives; and (ii) under applicable income tax law, Owners are not the owners of the assets generating the benefits.
Great-West is obligated to pay all amounts promised to Owners under the Policies (and any other life insurance policies issued by us and funded by the Series Account).
We will at all times maintain assets in the Series Account with a total market value at least equal to the reserves and other liabilities relating to the variable benefits under all policies participating in the Series Account.
8
The Series Account is divided into Divisions. Each Division invests exclusively in shares of a corresponding Fund. We may in the future add new or delete existing Divisions. The income, gains or losses, realized or unrealized, from assets allocated to each Division are credited to or charged against that Division without regard to the other income, gains or losses of the other Divisions.
All amounts allocated to a Division will be used to purchase shares of the corresponding Fund. The Divisions will at all times be fully invested in Fund shares. We maintain records of all purchases and redemptions of shares of the Funds.
The Investment Options and Funds
The Policy offers a number of Divisions or Sub-Accounts. Each Division invests in a single Fund. Each Fund is a mutual fund registered under the Investment Company Act of 1940, as amended (the “1940 Act”), or a separate series of shares of such a mutual fund. More comprehensive information, including a discussion of potential risks, is found in the current prospectuses for the Funds. The fund prospectuses should be read in connection with this prospectus. YOU MAY OBTAIN A PROSPECTUS AND, IF AVAILABLE, A FUND SUMMARY, CONTAINING COMPLETE INFORMATION ON EACH FUND, WITHOUT CHARGE, UPON REQUEST BY CONTACTING US AT 888-353-2654. If you received a summary prospectus for a Fund, please follow the directions on the first page of the summary prospectus to obtain a copy of the Fund’s prospectus.
Each Fund holds its assets separate from the assets of the other Funds, and each Fund has its own distinct investment objective and policies. Each Fund operates as a separate investment fund, and the income, gains and losses of one Fund generally have no effect on the investment performance of any other Fund.
The Funds are NOT available to the general public directly. The Funds are available as investment options in variable life insurance policies or variable annuity contracts issued by life insurance companies or, in some cases, through participation in certain qualified pension or retirement plans.
Some of the Funds have been established by investment advisers that manage publicly available mutual funds having similar names and investment objectives. While some of the Funds may be similar to, and may in fact be modeled after publicly available mutual funds, the Funds are not otherwise directly related to any publicly available mutual fund. Consequently, the investment performance of publicly available mutual funds and any similarly named Fund may differ substantially.
Payments We Receive. Some of the Funds’ investment advisers or affiliates may compensate us for providing the administrative, recordkeeping and reporting services they would normally be required to provide for individual shareholders or cost savings experienced by the investment advisers or affiliates of the Funds. Such compensation is typically a percentage of Series Account assets invested in the relevant Fund and generally may range up to 0.35% of net assets. Prior to October 5, 2020, GWFS Equities, Inc. (“GWFS”), a broker-dealer and subsidiary of Great-West served as the principal underwriter and distributor of the Policy. After October 5, 2020, the principal underwriter and distributor of the Policy is Investment Distributors, Inc. (“IDI”), a subsidiary of Protective Life Corporation (“PLC”), the parent of Protective. IDI is a Tennessee corporation and was established in 1993.
GWFS and IDI may receive 12b-1 fees (ranging up to 0.25%) directly from certain Funds for providing distribution related servies related to shares of Funds offered in connection with a Rule 12b-1 plan. If GWFS or IDI, as the case may be, receives 12b-1 fees, combined compensation for administrative and distribution related services generally ranges up to 0.60% annually of Series Account assets invested in a Fund.
Such payments and fees create an incentive for us to offer portfolios (or classes of shares of portfolios) for which such payments and fees are available to us. We consider such payments and fees, among other things, when deciding to include a portfolio (or class or share of a portfolio) as an investment option under the Policy. Other available investment portfolios (or other available classes of shares of the portfolios) may have lower fees and better overall investment performance than the portfolios (or classes of shares of the portfolios) offered under the Policy.
If you purchased the Policy through a broker-dealer or other financial intermediary (such as a bank), the Funds and their related companies may pay the intermediary for services provided with regard to the sale of Fund shares to the Divisions under the Policy. The amount and/or structure of the compensation can possibly create a conflict of interest as it may influence the broker-dealer or other intermediary and your salesperson to present this Policy (and certain Divisions under the Policy) over other investment alternatives. The variations in compensation, however, may also reflect differences in sales effort or ongoing customer services expected of the broker-dealer or other intermediary or your salesperson. You may ask your salesperson about variations and how he or she and his or her broker-dealer are compensated for selling the Policy or visit your financial intermediary’s Web site for more information.
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Payments We Make. In addition to the direct cash compensation described above for sales of the Policies, IDI agents may receive additional cash and non-cash incentives to promote the sale of the Policies. IDI agents may participate in various contests and promotions subject to applicable FINRA regulations in which IDI agents may receive prizes such as travel awards, merchandise and cash. Subject to applicable FINRA regulations, IDI agents also may receive travel expenses, meals, lodging and entertainment of salespersons in connection with educational and sales promotional programs and sponsor speakers, educational seminars and charitable events.
Cash incentive payments may vary depending on the arrangement in place at any particular time. Cash incentives payable to IDI agents may be based on certain performance measurements, including a percentage of the net amount invested in certain Funds available under the Policy. These additional payments could be viewed as creating conflicts of interest. In some cases, the payment of incentive-based compensation may create a financial incentive for an IDI agent to recommend or sell the Policy instead of other products or recommend certain Funds under the Policy over other Funds, which may not necessarily be to your benefit.
Closed Divisions. Effective April 1, 2004, the Divisions investing in the American Century VP International Fund (Class I Shares) and Invesco V.I. Core Equity Fund (Series I Shares) were closed to new Owners. However, Owners with amounts invested in the aforementioned Divisions as of April 1, 2004, may continue to allocate Premium payments and Transfer amounts into and out of such Divisions.
Effective May 1, 2005, the Divisions investing in the Invesco V.I. Technology Fund (Series I Shares); Fidelity Variable Insurance Products Growth Portfolio (Service Class 2 Shares); Janus Henderson Global Research Portfolio (Institutional Shares); Great-West S&P Small Cap 600® Index Fund (Investor Class Shares); and Neuberger Berman AMT Mid Cap Growth Portfolio (Class I Shares) were closed to new Owners. However, Owners with amounts invested in the aforementioned Divisions as of May 1, 2005, may continue to allocate Premium payments and Transfer amounts into and out of such Divisions.
Effective May 1, 2007, the Division investing in the Invesco V.I. Health Care Fund (Series I Shares) was closed to new Owners. However, Owners with amounts transferred in the aforementioned Divisions as of May 1, 2007, may continue to allocate Premium payments and Transfer amounts into and out of such Divisions.
Effective May 1, 2008, the Division investing in the Federated Hermes High Income Bond Fund II (Primary Class Shares) was closed to new Owners. However, Owners with amounts transferred in the aforementioned Division as of May 1, 2008, may continue to allocate Premium payments and Transfer amounts into and out of such Divisions.
Effective May 1, 2009, the Divisions investing in the DWS CROCI® U.S. VIP (Class A Shares); Fidelity Variable Investment Portfolio Investment Grade Bond Portfolio (Service Class 2 Shares); and VanEck VIP Emerging Markets Fund (Initial Class Shares) were closed to new Owners. However, Owners with amounts transferred in the aforementioned Division as of May 1, 2009, may continue to allocate Premium payments and Transfer amounts into and out of such Divisions.
Effective April 30, 2010, the Division investing in the Federated Hermes Kaufmann Fund II (Primary Class Shares) was closed to new Owners. However, Owners with amounts transferred in to aforementioned Division as of April 30, 2010, may continue to allocate Premium payments and Transfer amounts into and out of such Division.
Effective May 1, 2014, the Division investing in the Columbia Variable Portfolio – Small Cap Value Fund (Class 1 Shares) was closed to new Owners. However, Owners with amounts transferred in to aforementioned Division as of May 1, 2014, may continue to allocate Premium payments and Transfer amounts into and out of such Division.
Effective May 1, 2016, the Divisions investing in the Alger Small Cap Growth Portfolio (Class I-2 Shares); Davis Value Portfolio; Invesco V.I. Mid Cap Core Equity Fund (Series I Shares); Janus Henderson Overseas Portfolio (Institutional Shares); and Royce Capital Fund Small-Cap Portfolio (Service Class Shares) were closed to new Owners. However, Owners with amounts invested in these Funds as of May 1, 2016 may continue to allocate Premium payments and Transfer amounts into and out of these Divisions.
Effective May 1, 2017, the Divisions investing in the DWS Small Mid Cap Value VIP (Class A Shares); Goldman Sachs VIT Mid Cap Value Fund (Institutional Shares); and Lord Abbett Series Fund Developing Growth Portfolio (Class VC Shares) were closed to new Owners. However, Owners with amounts invested in these Funds as of May 1, 2017 may continue to allocate Premium payments and Transfer amounts into and out of these Divisions.
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Effective May 1, 2019, the Divisions investing in the Fidelity® Variable Insurance Products Contrafund® Portfolio (Service Class 2 Shares); Goldman Sachs Multi-Strategy Alternatives Portfolio (Service Shares); and Putnam VT Emerging Markets Equity Fund (Class IA Shares) were closed to new owners. However, Owners with amounts invested in these Funds as of May 1, 2019 may continue to allocate Premium payments and Transfer amounts into and out of these Divisions.
Effective October 25, 2019, the Division investing in the Great-West Large Cap Value Fund (Investor II Class Shares) was closed to new owners. Investor II Class shares are only available to former Investor Class and Class L shareholders of the Great-West T. Rowe Price Equity Income Fund which merged into the Fund. Owners with amounts invested in these Funds as of October 25, 2019 may continue to allocate Premium payments and Transfer amounts into and out of such Division.
Effective May 1, 2021, the Divisions investing in the American Century Investments VP Inflation Protection Fund (Class II Shares); Fidelity VIP Mid Cap Portfolio (Service Class 2 Shares); Great-West Global Bond Fund (Investor Class Shares); Neuberger Berman AMT Mid Cap Intrinsic Value Portfolio (Class I Shares); and VanEck VIP Global Hard Assets Fund (Initial Class Shares) were closed to new owners. However, Owners with amounts invested in these Funds as of May 1, 2021 may continue to allocate Premium payments and Transfer amounts into and out of these Divisions.
Fund Investment Objectives. The investment objectives of the Funds are briefly described below:
AIM Variable Insurance Funds (Invesco Variable Insurance Funds) - advised by Invesco Advisers, Inc.
Invesco V.I. Core Equity Fund (Series I Shares)* - seeks long-term growth of capital.
Invesco V.I. Global Real Estate Fund (Series I Shares) - seeks total return through growth of capital and current income. Invesco Asset Management Ltd is the sub-adviser to this Fund.
Invesco V.I. Health Care Fund (Series I Shares)* - seeks long-term growth of capital.
Invesco V.I. International Growth Fund (Series I Shares) - seeks long-term growth of capital.
Invesco V.I. Main Street Mid Cap Fund (formerly Invesco V.I. Mid Cap Core Equity Fund (Series I Shares))* - seeks long-term growth of capital.
Invesco V.I. Main Street Small Cap Fund® (formerly Invesco Oppenheimer V.I. Main Street Small Cap Fund®) (Series I Shares) - seeks capital appreciation.
Invesco V.I. Technology Fund (Series I Shares)* - seeks long-term growth of capital.
Alger Portfolios – advised by Fred Alger Management, Inc.
Alger Small Cap Growth Portfolio (Class I-2 Shares)* - seeks long-term capital appreciation.
American Century Variable Portfolios, Inc. – advised by American Century Investment Management, Inc.
American Century Investments® VP Capital Appreciation Fund (Class I Shares) - seeks capital growth.
American Century Investments® VP International Fund (Class I Shares)* - seeks capital growth.
American Century Investments® VP Mid Cap Value Fund (Class I Shares) - seeks long-term capital growth; income is a secondary consideration.
American Century Investments® VP Ultra Fund (Class I Shares) - seeks long-term capital growth.
American Century Investments® VP Value Fund (Class I Shares) - seeks long-term capital growth; income is a secondary consideration.
American Century Variable Portfolios II, Inc. – advised by American Century Investment Management, Inc.
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American Century Investments® VP Inflation Protection Fund (Class II Shares)* - seeks long-term total return using a strategy that seeks to protect against U.S. inflation.
American Funds Insurance Series® - advised by Capital Research and Management Company
American Funds IS Global Small Capitalization Fund (Class 2 Shares) - seeks long-term growth of capital.
American Funds IS Growth Fund (Class 2 Shares) - seeks growth of capital.
American Funds IS Growth-Income Fund (Class 2 Shares) - seeks to achieve long-term growth of capital and income.
American Funds IS International Fund (Class 2 Shares) - seeks to provide investors with long-term growth of capital.
American Funds IS New World Fund® (Class 2 Shares) - seeks long-term capital appreciation.
Blackrock Variable Series Funds, Inc. - advised by BlackRock Advisors, LLC
BlackRock 60/40 Target Allocation ETF V.I. Fund (Class I Shares) - seeks to track the investment results of an index composed of global equities in the technology sector.
BlackRock Global Allocation V.I. Fund (Class I Shares) - seeks high total investment return.
BlackRock High Yield V.I. Fund (Class I Shares) - seeks to maximize total return, consistent with income generation and prudent investment management. BlackRock International Limited is the sub-adviser to this Fund.
BNY Mellon Stock Index Fund, Inc. - advised by BNY Mellon Investment Adviser, Inc.
BNY Mellon Stock Index Fund (Initial Shares) - seeks to match the total return of the Standard & Poor's® 500 Composite Stock Price Index (S&P 500® Index). Mellon Investments Corporation is the sub-adviser to this Fund.
Columbia Funds Variable Insurance Trust - advised by Columbia Management Investment Advisers, LLC
Columbia Variable Portfolio - Small Cap Value (Class 1 Shares)* - seeks long-term capital appreciation.
Davis Variable Account Fund, Inc. - advised by Davis Selected Advisors, L.P.
Davis Financial Portfolio - seeks long-term growth of capital. Davis Selected Advisers-NY, Inc. is the sub-adviser to this Fund.
Davis Value Portfolio* - seeks long-term growth of capital. Davis Selected Advisers-NY, Inc. is the sub-adviser to this Fund.
Delaware VIP® Trust – advised by Delaware Management Company
Delaware VIP® International Series (Standard Class Shares) - seeks long-term growth without undue risk to principal.
Delaware VIP® Small Cap Value Series (Service Class Shares) - seeks capital appreciation.
Deutsche DWS Investments VIT Funds – advised by DWS Investment Management Americas, Inc.
DWS Small Cap Index VIP (Class A Shares) - seeks to replicate, as closely as possible, before the deduction of expenses, the performance of the Russell 2000® Index, which emphasizes stocks of small U.S. companies. Northern Trust Investments, Inc. is the sub-adviser to this Fund.
Deutsche DWS Variable Series I – advised by DWS Investment Management Americas, Inc.
DWS Core Equity VIP (Class A Shares) - seeks long-term growth of capital, current income and growth of income.
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Deutsche DWS Variable Series II – advised by DWS Investment Management Americas, Inc.
DWS CROCI® U.S. VIP (Class A Shares)* - seeks a high rate of total return.
DWS High Income VIP (Class A Shares) - seeks a high level of current income.
DWS Small Mid Cap Value VIP (Class A Shares)* - seeks long-term capital appreciation.
DFA Investment Dimensions Group, Inc. – advised by Dimensional Fund Advisors LP
Dimensional VIT Inflation-Protected Securities Portfolio (Institutional Class Shares) - seeks to provide inflation protection and earn current income consistent with inflation-protected securities.
Eaton Vance Variable Trust – advised by Eaton Vance Management
Eaton Vance VT Floating-Rate Income Fund (Initial Class Shares) - seeks to provide a high level of current income.
Federated Hermes Insurance Series – advised by Federated Investment Management Company
Federated Hermes High Income Bond Fund II (Primary Class Shares)* - seeks high current income.
Federated Hermes Kaufmann Fund II (Primary Class Shares)* - seeks capital appreciation. Federated Global Investment Management Corp. is the sub-adviser to this Fund.
Fidelity® Variable Insurance Products Fund – advised by Fidelity Management & Research Company
Fidelity® VIP Growth Portfolio (Service Class 2 Shares)* - seeks to achieve capital appreciation. FMR Co., Inc. (FMRC) is the sub-adviser to this Fund.
Fidelity® Variable Insurance Products Fund II – advised by Fidelity Management & Research Company
Fidelity® VIP Contrafund® Portfolio (Service Class 2 Shares)* - seeks long-term capital appreciation. FMR Co., Inc. (FMRC) is the sub-adviser to this Fund.
Fidelity® VIP Emerging Markets Portfolio (Service Class 2 Shares) - seeks capital appreciation. FMR Co., Inc. (FMRC) is the sub-adviser to this Fund.
Fidelity VIP Index 500 Portfolio (Initial Class Shares) - seeks investment results that correspond to the total return of common stocks publicly traded in the United States, as represented by the S&P 500® Index.
Fidelity® VIP Investment Grade Bond Portfolio (Service Class 2 Shares)* - seeks as high a level of current income as is consistent with the preservation of capital. Fidelity Investments Money Management, Inc. (FIMM) is the sub-adviser to this Fund.
Fidelity® Variable Insurance Products Fund III – advised by Fidelity Management & Research Company
Fidelity® VIP Mid Cap Portfolio (Service Class 2 Shares)* - seeks long-term growth of capital. FMR Co., Inc. (FMRC) is the sub-adviser to this Fund.
Goldman Sachs Variable Insurance Trust – advised by Goldman Sachs Asset Management, L.P.
Goldman Sachs VIT Mid Cap Value Fund (Institutional Shares)* - seeks long-term capital appreciation.
Goldman Sachs VIT Multi-Strategy Alternatives Portfolio (Service Shares)* - seeks long-term growth of capital.
Great-West Funds, Inc. – advised by Great-West Capital Management, LLC
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Great-West Ariel Mid Cap Value Fund (Investor Class Shares) - seeks long-term capital appreciation. Ariel Investments, LLC is the sub-adviser to this Fund.
Great-West Bond Index Fund (Investor Class Shares) - seeks investment results that track the total return of the debt securities that comprise the Bloomberg Barclays U.S. Aggregate Bond Index.
Great-West Core Bond Fund (Investor Class Shares) - seeks to provide total return, consisting of two components: (1) changes in the market value of its portfolio holdings (both realized and unrealized appreciation); and (2) income received from its portfolio holdings. Federated Investment Management Company and Wellington Management Company LLP are the sub-advisers to this Fund.
Great-West Emerging Markets Equity Fund (Investor Class Shares) - seeks long-term capital appreciation. Lazard Asset Management LLC and UBS Asset Management (Americas) Inc. are the sub-advisers to this Fund.
Great-West Global Bond Fund (Investor Class Shares)* - seeks current income with capital appreciation and growth of income. Franklin Advisers, Inc. and Mellon Investments Corporation are the sub-advisers to the Fund.
Great-West Government Money Market Fund (Investor Class Shares) - seeks as high a level of current income as is consistent with the preservation of capital and liquidity. Investment in the Great-West Government Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in this Fund.
Great-West Inflation-Protected Securities Fund (Investor Class Shares) - seeks real return consistent with the preservation of capital. Goldman Sachs Asset Management, L.P. is the sub-adviser to this Fund.
Great-West International Index Fund (Investor Class Shares) - seeks investment results, before fees and expenses that track the total return of the common stocks that comprise the MSCI EAFE (Europe, Australasia, Far East) Index. Irish Life Investment Managers Ltd. is the sub-adviser to this Fund.
Great-West International Value Fund (Investor Class Shares) - seeks long-term capital growth. LSV Asset Management and Massachusetts Financial Services Company are the sub-advisers to this Fund.
Great-West Large Cap Growth Fund (Investor Class Shares) - seeks long-term growth of capital. Amundi Pioneer Asset Management, Inc. and J.P. Morgan Investment Management Inc. are the sub-advisers to this Fund.
Great-West Large Cap Value Fund (Investor Class Shares) - seeks capital growth and current income. Putnam Investment Management, LLC and T. Rowe Price Associates, Inc. are the sub-advisers to this Fund.
Great-West Large Cap Value Fund (Investor II Class Shares)* - seeks capital growth and current income. Putnam Investment Management, LLC and T. Rowe Price Associates, Inc. are the sub-advisers to this Fund.
Great-West Mid Cap Value Fund (Investor Class Shares) - seeks long-term growth of capital. Goldman Sachs Asset Management, L.P. is the sub-adviser to this Fund.
Great-West Multi-Sector Bond Fund (Investor Class Shares) - seeks high total investment return through a combination of current income and capital appreciation. Loomis, Sayles & Company, L.P. and Newfleet Asset Management, LLC are the sub-advisers to this Fund.
Great-West Real Estate Index Fund (Investor Class Shares) - seeks investment results, before fees and expenses, that track the total return of a benchmark index that measures the performance of publicly traded equity real estate investment trusts (“REITs”). Irish Life Investment Managers Ltd. is the sub-adviser to this Fund.
Great-West S&P Mid Cap 400® Index Fund (Investor Class Shares) - seeks investment results, before fees and expenses, which track the total return of the common stocks that comprise the Standard & Poor's (“S&P”) MidCap 400® Index. Irish Life Investment Managers Ltd. is the sub-adviser to this Fund.
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Great-West S&P Small Cap 600® Index Fund (Investor Class Shares)* - seeks investment results that track the total return of the common stocks that comprise the Standard & Poor's (“S&P”) SmallCap 600® Index. ) Irish Life Investment Managers Ltd. is the sub-adviser to this Fund.
Great-West Short Duration Bond Fund (Investor Class Shares) - seeks maximum total return that is consistent with preservation of capital and liquidity.
Great-West Small Cap Growth Fund (Investor Class Shares) - seeks long-term capital appreciation. Lord, Abbett & Co. LLC and Peregrine Capital Management, LLC are the sub-advisers to the Fund.
Great-West Small Cap Value Fund (formerly Great-West Loomis Sayles Small Cap Value Fund) (Investor Class Shares) - seeks long-term capital growth. Hotchkis & Wiley Capital Management, LLC and Loomis, Sayles & Company, L.P. are the sub-advisers to this Fund.
Great-West T. Rowe Price Mid Cap Growth Fund (Investor Class Shares) - seeks long-term capital appreciation. T. Rowe Price Associates, Inc. is the sub-adviser to this Fund.
Great-West U.S. Government Securities Fund (Investor Class Shares) - seeks the highest level of return consistent with preservation of capital and substantial credit protection.
Great-West Lifetime Funds
Great-West Lifetime 2015 Fund (Investor Class Shares) - seeks income and secondarily, capital growth.
Great-West Lifetime 2020 Fund (Investor Class Shares) - seeks income and secondarily capital growth.
Great-West Lifetime 2025 Fund (Investor Class Shares) - seeks capital appreciation and income consistent with its current asset allocation; after 2025, it seeks income and secondarily capital growth.
Great-West Lifetime 2030 Fund (Investor Class Shares) - seeks capital appreciation and income consistent with its current asset allocation; after 2030, it seeks income and secondarily capital growth.
Great-West Lifetime 2035 Fund (Investor Class Shares) - seeks capital appreciation and income consistent with its current asset allocation; after 2035, it seeks income and secondarily capital growth.
Great-West Lifetime 2040 Fund (Investor Class Shares) - seeks capital appreciation and income consistent with its current asset allocation; after 2040, it seeks income and secondarily capital growth.
Great-West Lifetime 2045 Fund (Investor Class Shares) - seeks capital appreciation and income consistent with its current asset allocation; after 2045, it seeks income and secondarily capital growth.
Great-West Lifetime 2050 Fund (Investor Class Shares) - seeks capital appreciation and income consistent with its current asset allocation; after 2050, it seeks income and secondarily capital growth.
Great-West Lifetime 2055 Fund (Investor Class Shares) - seeks capital appreciation and income consistent with its current asset allocation; after 2055, it seeks income and secondarily capital growth.
Great-West Lifetime 2060 Fund (Investor Class Shares) - seeks capital appreciation and income consistent with its current asset allocation; after 2060, it seeks income and secondarily capital growth.
Great-West Profile Funds
Each of the following Profile Funds seeks to provide an asset allocation program designed to meet certain investment goals based on an investor’s risk tolerance, investment horizon and personal objectives.
Great-West Aggressive Profile Fund (Investor Class Shares) - seeks long-term capital appreciation primarily through investments in underlying funds that emphasize equity investments.
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Great-West Conservative Profile Fund (Investor Class Shares) - seeks capital preservation primarily through investments in underlying funds that emphasize fixed income investments.
Great-West Moderate Profile Fund (Investor Class Shares) - seeks long-term capital appreciation primarily through investments in underlying funds with a relatively equal emphasis on equity and fixed income investments.
Great-West Moderately Aggressive Profile Fund (Investor Class Shares) - seeks long-term capital appreciation primarily through investments in underlying funds that emphasize equity investments and, to a lesser degree, in underlying funds that emphasize fixed income investments.
Great-West Moderately Conservative Profile Fund (Investor Class Shares) - seeks income and capital appreciation primarily through investments in underlying funds that emphasize fixed income investments and, to a lesser degree, in underlying funds that emphasize equity investments.
Janus Aspen Series – advised by Janus Capital Management LLC
Janus Henderson Balanced Portfolio (Institutional Shares) - seeks long-term capital growth, consistent with preservation of capital and balanced by current income.
Janus Henderson Enterprise Portfolio (Institutional Shares) - seeks long-term growth of capital.
Janus Henderson Flexible Bond Portfolio (Institutional Shares) - seeks to obtain maximum total return, consistent with preservation of capital.
Janus Henderson Forty Portfolio (Institutional Shares) - seeks long-term growth of capital.
Janus Henderson Global Research Portfolio (Institutional Shares)* - seeks long-term growth of capital.
Janus Henderson Global Technology and Innovation Portfolio (Institutional Shares) - seeks long-term growth of capital.
Janus Henderson Overseas Portfolio (Institutional Shares)* - seeks long-term growth of capital.
JPMorgan Insurance Trust – advised by J.P. Morgan Investment Management Inc.
JPMorgan Insurance Trust Small Cap Core Portfolio (Class 1 Shares) - seeks capital growth over the long term.
JPMorgan Insurance Trust U.S. Equity Portfolio (Class 1 Shares) - seeks high total return.
Legg Mason Partners Variable Equity Trust – advised by Legg Mason Partners Fund Advisor, LLC
ClearBridge Variable Mid Cap Portfolio (Class I Shares) - seeks long-term growth of capital. ClearBridge Investments, LLC is the sub-adviser to this Fund.
ClearBridge Variable Small Cap Growth Portfolio (Class I Shares) - seeks long-term growth of capital. ClearBridge Investments, LLC is the sub-adviser to this Fund.
Lord Abbett Series Fund, Inc. – advised by Lord, Abbett & Co. LLC
Lord Abbett Series Fund Developing Growth Portfolio (Class VC Shares)* - seeks long-term growth of capital.
Lord Abbett Series Fund Total Return Portfolio (Class VC Shares) - seeks income and capital appreciation to produce a high total return.
MFS® Variable Insurance Trust – advised by Massachusetts Financial Services Company
MFS® VIT Growth Series (Initial Class Shares) - seeks capital appreciation.
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MFS® VIT Mid Cap Growth Series (Initial Class Shares) - seeks capital appreciation.
MFS® VIT Research Series (Initial Class Shares) - seeks capital appreciation.
MFS® VIT Total Return Bond Series (Initial Class Shares) - seeks total return with an emphasis on current income, but also considering capital appreciation.
MFS® VIT Value Series (Initial Class Shares) - seeks capital appreciation.
MFS® Variable Insurance Trust II – advised by Massachusetts Financial Services Company
MFS® VIT II International Growth Portfolio (Initial Class Shares) - seeks capital appreciation.
MFS® Variable Insurance Trust III – advised by Massachusetts Financial Services Company
MFS® VIT III Blended Research® Small Cap Equity Portfolio (Initial Class Shares) - seeks capital appreciation.
MFS® VIT III Global Real Estate Portfolio (Initial Class Shares) - seeks total return.
MFS® VIT III Mid Cap Value Portfolio (Initial Class Shares) - seeks capital appreciation.
Neuberger Berman Advisers Management Trust – advised by Neuberger Berman Investment Advisers LLC
Neuberger Berman AMT Mid Cap Growth Portfolio (Class I Shares)* - seeks growth of capital.
Neuberger Berman AMT Mid Cap Intrinsic Value Portfolio (Class I Shares)* - seeks growth of capital.
Neuberger Berman AMT Sustainable Equity Portfolio (Class I Shares) - seeks long-term growth of capital by investing primarily in securities of companies that meet the Fund’s environmental, social and governance (ESG) criteria.
PIMCO Variable Insurance Trust – advised by Pacific Investment Management Company, LLC
PIMCO VIT CommodityRealReturn® Strategy Portfolio (Administrative Class Shares) - seeks maximum real return, consistent with prudent investment management.
PIMCO VIT Global Bond Opportunities Portfolio (Unhedged) (Administrative Class Shares) - seeks maximum total return, consistent with preservation of capital and prudent investment management.
PIMCO VIT High Yield Portfolio (Administrative Class Shares) - seeks maximum total return, consistent with preservation of capital and prudent investment management.
PIMCO VIT Low Duration Portfolio (Administrative Class Shares) - seeks maximum total return, consistent with preservation of capital and prudent investment management.
PIMCO VIT Real Return Portfolio (Administrative Class Shares) - seeks maximum real return, consistent with preservation of real capital and prudent investment management.
PIMCO VIT Total Return Portfolio (Administrative Class Shares) - seeks maximum total return, consistent with preservation of capital and prudent investment management.
Pioneer Variable Contracts Trust – advised by Amundi Pioneer Asset Management, Inc.
Pioneer Real Estate Shares VCT Portfolio (Class I Shares) - seeks long-term growth of capital; current income is a secondary objective.
Putnam Variable Trust – advised by Putnam Investment Management, LLC
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Putnam VT Emerging Markets Equity Fund Class (Class IA Shares)* - seeks long-term capital appreciation. The Putnam Advisory Company, LLC and Putnam Investments Limited are the sub-advisers to this Fund.
Putnam VT Focused International Equity Fund (formerly Putnam VT Global Equity Fund) (Class IA Shares) - seeks capital appreciation. The Putnam Advisory Company, LLC and Putnam Investments Limited are the sub-advisers to this Fund.
Putnam VT Global Asset Allocation Fund (Class IA Shares) - seeks long-term return consistent with preservation of capital. The Putnam Advisory Company, LLC and Putnam Investments Limited are the sub-advisers to this Fund.
Putnam VT Growth Opportunities Fund (Class IA Shares) - seeks capital appreciation. Putnam Investments Limited is the sub-adviser to this Fund.
Putnam VT High Yield Fund (Class IA Shares) - seeks high current income. Putnam Investments Limited is the sub-adviser to this Fund.
Putnam VT Income Fund (Class IB Shares) - seeks high current income consistent with what the manager believes to be prudent risk. Putnam Investments Limited is the sub-adviser to this Fund.
Putnam VT International Value Fund (Class IA Shares) - seeks capital growth; current income is a secondary objective. The Putnam Advisory Company, LLC and Putnam Investments Limited are the sub-advisers to this Fund.
Putnam VT Large Cap Value Fund (formerly Putnam VT Equity Income Fund) (Class IA Shares) - seeks capital growth and current income. Putnam Investments Limited is the sub-adviser to this Fund.
Putnam VT Research Fund (Class IA Shares) - seeks capital appreciation. The Putnam Advisory Company, LLC and Putnam Investments Limited are the sub-advisers to this Fund.
Putnam VT Small Cap Value Fund (Class IA Shares) - seeks capital appreciation. Putnam Investments Limited is the sub-adviser to this Fund.
Putnam VT Sustainable Future Fund (Class IA Shares) - seeks capital appreciation and, as a secondary objective, current income. Putnam Investments Limited is the sub-adviser to this Fund.
Royce Capital Fund – advised by Royce & Associates, LP
Royce Small-Cap Portfolio (Service Class Shares)* - seeks long-term growth of capital.
T. Rowe Price Equity Series, Inc. – advised by T. Rowe Price Associates, Inc.
T. Rowe Price Blue Chip Growth Portfolio (Portfolio-II Class Shares) - seeks to provide long-term capital growth; income is a secondary objective.
VanEck VIP Trust – advised by Van Eck Associates Corporation
VanEck VIP Emerging Markets Fund (Initial Class Shares)* - seeks long-term capital appreciation by investing primarily in equity securities in emerging markets around the world.
VanEck VIP Global Resources Fund (formerly VanEck VIP Global Hard Assets Fund) (Initial Class Shares)* - seeks long-term capital appreciation by investing primarily in global resource securities; income is a secondary consideration.
Vanguard Variable Insurance Funds - advised by The Vanguard Group, Inc.
Vanguard VIF Global Bond Index Portfolio - seeks to track the performance of a benchmark index that measures the investment return of the global, investment-grade, fixed income market.
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Vanguard VIF Total Bond Market Index Portfolio - seeks to track the performance of a broad, market-weighted bond index.
Victory Portfolios – advised by Victory Capital Management, Inc.
Victory RS Small Cap Growth Equity VIP Series (Class I Shares) - seeks long-term capital growth.
* The Sub-Account investing in this Fund is closed to new Owners.
You should contact your representative for further information on the availability of the Divisions.
Each Fund is subject to certain investment restrictions and policies that may not be changed without the approval of a majority of the shareholders of the Fund. See the Fund prospectuses for further information.
We automatically reinvest all dividends and capital gain distributions from the Funds in shares of the distributing Fund at their net asset value. The income and realized and unrealized gains or losses on the assets of each Division are separate and are credited to, or charged against, the particular Division without regard to income, gains or losses from any other Division or from any other part of our business. We will use amounts you allocate to a Division to purchase shares in the corresponding Fund and will redeem shares in the Funds to meet Policy obligations or make adjustments in reserves. The Funds are required to redeem their shares at net asset value and to make payment within seven days.
The Funds may also be available to separate accounts offering variable annuity, variable life products and qualified plans of other affiliated and unaffiliated insurance companies, as well as our other separate accounts. Although we do not anticipate any disadvantages to this, there is a possibility that a material conflict may arise between the interests of the Series Account and one or more of the other separate accounts participating in the Funds. A conflict may occur due to a change in law affecting the operations of variable life and variable annuity separate accounts, differences in the voting instructions of Owners and those of other companies, or some other reason. In the event of conflict, we will take any steps necessary to protect Owners, including withdrawal of the Series Account from participation in the Funds that are involved in the conflict or substitution of shares of other Funds.
Voting. We are the legal owner of all shares of the Funds held in the Divisions of the Series Account. In general, you do not have a direct right to vote the Fund shares held in the Divisions of the Series Account. However, under current law, you are entitled to give us instructions on how to vote the shares held in the Divisions. At regular and special shareholder meetings, we will vote the shares held in the Divisions in accordance with those instructions received from Owners who have an interest in the respective Divisions.
We will vote shares held in each Division for which no timely instructions from Owners are received, together with shares not attributable to a Policy, in the same proportion as those shares in that Division for which instructions are received.
The number of shares in each Division for which instructions may be given by an Owner is determined by dividing the portion of the Account Value derived from participation in that Division, if any, by the value of one share of the corresponding Fund. We will determine the number as of the record date chosen by the Fund. Fractional votes are counted. Voting instructions will be solicited in writing at least 14 days prior to the shareholders’ meeting.
We may, if required by state insurance regulators, disregard voting instructions if those instructions would require shares to be voted so as to cause a change in the sub-classification or investment policies of one or more of the Funds, or to approve or disapprove an investment management contract. In addition, we may disregard voting instructions that would require changes in the investment policies or investment adviser, provided that we reasonably disapprove of those changes in accordance with applicable federal regulations. If we disregard voting instructions, we will advise you of that action and our reasons for it in our next communication to Owners.
This description reflects our current view of applicable federal securities law. Should the applicable federal securities laws change so as to permit us to vote shares held in the Series Account in our own right, we may elect to do so.
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Fixed Account
The Fixed Account is part of our General Account. We have absolute ownership of the assets in the Fixed Account. Except as limited by law, we have sole control over the investment of the General Account assets. You do not share in the investment experience of the General Account, but are allowed to allocate and transfer Account Value into the Fixed Account. We assume the risk of investment gain or loss on this amount. All assets in the General Account are subject to our general liabilities from business operations. The Fixed Account does not participate in the investment performance of the Sub-Accounts. The Policy gives the Company the right to impose limits on the amount each Owner can invest in the Fixed Account and such limits are subject to change at the sole discretion of the Company.
The Fixed Account is not registered with the SEC under the Securities Act of 1933. Neither the Fixed Account nor the General Account have been registered as an investment company under the 1940 Act. As a result, neither the Fixed Account nor the General Account are generally subject to regulation under either Act. However, certain disclosures may be subject to generally applicable provisions of the federal securities laws regarding the accuracy of statements made in registration statements.
The Fixed Account offers a guarantee of principal, after deductions for fees and expenses. We also guarantee that the amounts you allocate to the Fixed Account will earn interest at a rate of at least the minimum guaranteed interest rate indicated in your Policy. We do not rely on predetermined formulas to set Fixed Account interest rates. We will review the interest rate at least once a year, but at the Company’s discretion we may reset the interest rate monthly.
The Fixed Account may not be available in all states.
Employer-Financed Insurance Purchase Arrangements--Tax and Other Legal Issues
In addition to corporations and other employers, the Policy is also available for purchase by individuals whose employers will pay some or all of the Premiums due under the Policy pursuant to an employer-financed insurance purchase arrangement. In such cases, references in this prospectus to the “Owner” of the Policy will refer to the individual and, depending on the context, references to the “payment of premiums” will refer to payments to Great-West under the Policy by the employer and/or by the employee.
Employers and employees contemplating the purchase of a Policy as a part of an employer-financed insurance purchase arrangement should consult qualified legal and tax counsel with regard to the issues presented by such a transaction. For this purpose, an employer-financed insurance purchase arrangement is a plan or arrangement which contemplates that an employer will pay one or more Premiums for the purchase of a Policy that will be owned, subject to certain restrictions, by an employee or by a person or entity designated by the employee.
The general considerations applicable to such a purchase include the following:
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
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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.
Charges and Deductions
The Policy has insurance features and investment features, and there are costs related to each. This section describes the fees and charges that we may make under the Policy to compensate for: (1) the services and benefits we provide; (2) the costs and expenses we incur; and (3) the risks we assume. The fees and charges we deduct under this Policy may result in a profit to us.
Expense Charge Applied to Premium. We will deduct a maximum charge of 10% from each Premium payment, which is broken down as follows. A maximum of 6.5% will be deducted as sales load to compensate us in part for sales and promotional expenses in connection with selling the Policies, such as commissions, the cost of preparing sales literature, other promotional activities and other direct and indirect expenses. A maximum of 3.5% of Premium will be used to cover Premium taxes and certain federal income tax obligations resulting from the receipt of Premiums. All states and some cities and municipalities impose taxes on Premiums paid for life insurance, which generally range from 2% to 4% of Premium but may exceed 4% in some states. The amount of your state’s Premium tax may be higher or lower than the amount attributable to Premium taxes that we deduct from your Premium payments.
The current expense charge applied to Premium for sales load is 5.5% of Premium up to target and 3.0% of Premium in excess of target for Policy Years 1 through 10. Your target Premium will depend on the initial Total Face Amount of your Policy, your Issue Age, your sex (except in unisex states), and rating class (if any) which equals the maximum Premium payable under the seven-pay test such that the Policy remains compliant with section 7702A of the Code. Thereafter, there is no charge for sales load. The current expense charge applied to Premium to cover our Premium taxes and the federal tax obligation described above is 3.5% in all Policy Years.
Where permitted by applicable state insurance law and for corporate owned policies only, if your Policy is surrendered for the Surrender Benefit (Account Value less any outstanding Policy loans and less accrued loan interest) within the first seven Policy Years, we will return a percentage of the expense charge. The return of expense charge will be a percentage of your Account Value on the date the Request for surrender was received by us at our Corporate Headquarters. This amount will be in addition to the Surrender Benefit.
The return of expense charge is based on the following: 
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%
As described under the heading “Term Life Insurance Rider” below, we may offer a term life insurance rider that may have the effect of reducing the sales charge you pay on purchasing an equivalent amount of insurance. We offer this rider in circumstances that result in the savings of sales and distribution expenses and administrative costs. To qualify, a corporation, employer, or other purchaser must satisfy certain criteria such as, for example, the number of Policies it expects to purchase and the expected Total Face Amount under all such Policies. Generally, the sales contacts and effort and administrative costs per Policy depend on factors such as the number of Policies purchased by a single Owner, the purpose for which the Policies are purchased, and the characteristics of the proposed Insureds. The amount of reduction and the criteria for qualification are related to the sales effort and administrative costs resulting from sales to a qualifying Owner. Great-West from time to time may modify on a uniform basis both the amounts of reductions and the criteria for qualification. Reductions in these charges will not be unfairly discriminatory against any person, including the affected Owners funded by the Series Account.
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Mortality and Expense Risk Charge. This charge is for the mortality and expense risks we assume with respect to the Policy. It is based on an annual rate that we accrue against each Division of the Series Account on a daily basis and deduct on the first day of each Policy month by cancelling accumulation units on a pro-rata basis across all Sub-Accounts. We convert the mortality and expense risk charge into a daily rate by dividing the annual rate by 365. The mortality and expense risk charge will be determined by us from time to time based on our expectations of future interest, mortality experience, persistency, expenses and taxes, but will not exceed 0.90% annually. Currently, the charge is 0.40% for Policy Years 1 through 5, 0.25% for Policy Years 6 through 20 and 0.10% thereafter. On surrender and payment of the death benefit, we will deduct the pro-rata portion of the mortality and expense risk charge that has accrued.
Because the value of your Sub-Accounts can vary from month-to-month, the monthly deduction for the mortality and expense risk charge will also vary. If the amount the mortality and expense risk charge is insufficient to cover the costs resulting from the mortality and expense risks that we assume, we will bear the loss. If the amount we charge is more than sufficient to cover such costs, we will make a profit on the charge. To the extent that we do make a profit from this charge, we may use this profit for any corporate purpose, including the payment of administrative, marketing, distribution, and other expenses in connection with the Policies.
The mortality risk we assume is that the group of lives insured under the Policies may, on average, live for shorter periods of time than we estimated. The expense risk we assume is that the costs of issuing and administering Policies may be more than we estimated.
Monthly Deduction. We make a monthly deduction from your Account Value on the Policy Date and the first day of each Policy Month. This monthly deduction will be charged proportionally to the amounts in the Divisions.
The monthly deduction equals the sum of 1, 2, 3, 4 and 5 where:
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 net amount at risk equals:
•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.
If there are increases in the Total Face Amount other than increases caused by changes in the death benefit option, the monthly deduction described above is determined separately for the initial Total Face Amount and each increase in the Total Face Amount. In calculating the net amount at risk, your Account Value will first be allocated to the most recent increase in the death benefit and then to each increase in the Total Face Amount in the reverse order in which the increases were made.
Monthly Risk Rates. The monthly risk rate is used to determine the cost of insurance charge (monthly risk charge) for providing insurance coverage under the Policy. The monthly risk rate is applied to the amount at risk. The monthly risk rates (except for any such rate applicable to an increase in the Total Face Amount) are based on the length of time your Policy has been in force and the Insured’s sex (in the case of non-unisex Policies) and Issue Age. If the Insured is in a rated class as specified in your Policy, we will deduct an extra risk charge that reflects that class rating. The monthly risk rates applicable to each increase in the Total Face Amount are based on the length of time the increase has been in force and the Insured’s sex (in the case of non-unisex Policies), Issue Age, and class rating, if any. The monthly risk rates will be determined by us from time to time based on our expectations of future experience with respect to mortality, persistency, interest rates, expenses and taxes, but will not exceed the guaranteed maximum monthly risk rates based on the 2001 Commissioner’s Standard Ordinary, Age Nearest Birthday, Male/Female, Smoker/Non-Smoker Ultimate Mortality Table (“2001 CSO”).
Currently, the guaranteed minimum monthly risk charge under the 2001 CSO is $0.02 per $1000 and the guaranteed maximum is $83.33 per $1000. If your Policy is issued in Montana, unisex rates are charged and these rates will never exceed the male Smoker Ultimate Mortality Table.
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The guaranteed maximum monthly risk rates reflect any class rating applicable to the Policy. We have filed a detailed statement of our methods for computing Account Values with the insurance department in each jurisdiction where the Policy was delivered. These values are equal to or exceed the minimum required by law.
The monthly risk rate is greater on policies that require less underwriting to be performed regardless of the health of the individual. Monthly risk rate charges will be greatest on guaranteed issue policies, followed by simplified issue policies, then fully underwritten policies.
Service Charge. We will deduct a maximum of $15 from your Account Value on the first day of each Policy Month to cover our administrative costs, such as salaries, postage, telephone, office equipment and periodic reports. This charge may be increased or decreased by us from time to time based on our expectations of future expenses, but will never exceed $10 per Policy Month. The service charge will be deducted proportionally from the Divisions. The current service charge is $10 per Policy Month for Policy Years 1 through 3 and $7.50 per Policy Month thereafter.
Transfer Fee. A maximum administrative charge of $10 per Transfer of Account Value from one Division to other Divisions will be deducted from your Account Value for all Transfers in excess of 12 made in the same Policy Year. The allocation of your Initial Premium from the Great-West Government Money Market Division to your selected Divisions will not count toward the 12 free Transfers. Similarly, Transfers made under dollar cost averaging and periodic rebalancing under the rebalancer option are not subject to the fee and do not count as Transfers for this purpose (except a one-time rebalancing under the rebalancer option will count as one Transfer). All Transfers Requested on the same Business Day will be aggregated and counted as one Transfer. The current charge is $10 per Transfer.
Partial Withdrawal Fee. A maximum administrative fee of $25 will be deducted from your Account Value for all partial withdrawals after the first made in the same Policy Year. The partial withdrawal fee will be deducted proportionally from all Divisions.
Surrender Charges. Your Policy has no surrender charges.
Change of Death Benefit Option Fee. A maximum administrative fee of $100 will be deducted from your Account Value each time you change your death benefit option. The change of death benefit fee will be deducted proportionally from all Divisions.
Fund Expenses. You indirectly bear the charges and expenses of the Funds whose shares are held by the Divisions to which you allocate your Account Value. The Series Account purchases shares of the Funds at net asset value. Each Fund’s net asset value reflects investment advisory fees and administrative expenses already deducted from the Fund’s assets. For more information concerning the investment advisory fees and other charges against the Funds, see the Fund prospectuses and the statements of additional information for the Funds, which are available upon Request.
We may receive compensation from the investment advisers or administrators of the Funds. Such compensation will be consistent with the services we provide or the cost savings resulting from the arrangement and, therefore, may differ between Funds. See “Payments We Receive” above.
General Description of Policy
Unless otherwise indicated, the description of the Policy in this prospectus assumes that the Policy is in force, there is no Policy Debt and current federal tax laws apply. The Policy described in this prospectus is offered to corporations and other employers to provide life insurance coverage in connection with, among other things, deferred compensation plans and employer-financed insurance purchase arrangements. We issue Policies on the lives of prospective Insureds who meet our underwriting standards.
Policy Rights
Owner. While the Insured is alive, unless you have assigned any of these rights, you may:
•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.
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When you transfer your rights to a new Owner, you automatically revoke any prior contingent owner designation. When you want to change or revoke a prior Beneficiary designation, you have to specify that action. You do not affect a prior Beneficiary when you merely transfer ownership, or change or revoke a contingent owner designation.
You do not need the consent of a Beneficiary or a contingent owner in order to exercise any of your rights. However, you must give us written notice satisfactory to us of the Requested action. Your Request will then, except as otherwise specified herein, be effective as of the date you signed the form, subject to any action taken before it was received by us.
Beneficiary. The Beneficiary has no rights in the Policy until the death of the Insured, except an irrevocable Beneficiary cannot be changed without the consent of that Beneficiary. If a Beneficiary is alive at that time, the Beneficiary will be entitled to payment of the Death Benefit Proceeds as they become due.
Policy Limitations
Allocation of Net Premiums. Except as otherwise described herein, your net Premium will be allocated in accordance with the allocation percentages you select. Percentages must total 100% and can be up to two decimal places.
We will credit Premium payments received prior to the end of the free look period as described in the “Free Look Period” section of this prospectus.
You may change your allocation percentages at any time by Request.
Transfers Among Divisions. Subject to our rules as they may exist from time to time, you may at any time after the Free-Look Period Transfer to another Division all or a portion of the Account Value allocated to a Division. We will make Transfers pursuant to a Request.
Transfers may be Requested by indicating the Transfer of either a specified dollar amount or a specified percentage of the Division’s value from which the Transfer will be made.
Transfer privileges are subject to our consent. We reserve the right to impose limitations on Transfers, including, but not limited to: (1) the minimum amount that may be Transferred; and (2) the minimum amount that may remain in a Division following a Transfer from that Division.
In addition, we do not intend to enforce restrictions on Transfers set forth in your Policy except in cases of identified market timing unless the Sub-Account has additional restrictions that are noted in the respective Fund’s prospectus. See “Market Timing & Excessive Trading” below.
A fee of $10 per Transfer will apply for all Transfers in excess of 12 made in a Policy Year. We may increase or decrease the Transfer charge; however, it is guaranteed to never exceed $10 per Transfer. All Transfers Requested on the same Business Day will count as only one Transfer toward the 12 free Transfers. The Transfer of your Initial Premium from the Great-West Government Money Market Division to your selected Divisions does not count toward the 12 free Transfers. Likewise, any Transfers under dollar cost averaging or periodic rebalancing of your Account Value under the rebalancer option do not count toward the 12 free Transfers (a one-time rebalancing, however, will be counted as one Transfer).
Fixed Account Transfers. Transfers into the Fixed Account are limited to once every 60 days. If the Company has imposed a limit on the amount that can be allocated to the Fixed Account, then your Transfer will be rejected if it would cause the value of the Fixed Account to exceed such limit. Transfers from the Fixed Account may only be made once per year. The maximum to be transferred out will be the greater of 25% of your balance in the Fixed Account or the amount of the Transfer in the previous 365 day period.
Market Timing & Excessive Trading. Frequent Transfers may involve an effort to take advantage of the possibility of a lag between a change in the value of an underlying Fund’s securities and the reflection of that change in the Fund’s share price. This strategy, sometimes referred to as “market timing,” involves an attempt to buy shares of a Fund at a price that does not reflect the current market value of the securities of the Fund, and then to realize a profit when the Fund shares are sold the next Valuation Date or thereafter.
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When you make a Transfer Request among the Funds, your request triggers the purchase and redemption of Fund shares. Frequent Transfers cause frequent purchases and redemptions of Fund shares. Frequent purchases and redemptions of Fund shares can cause adverse effects for a Fund, Fund shareholders, the Sub-Account , other Owners, beneficiaries, annuitants, or owners of other variable contracts we issue that invest in the Sub-Account. Frequent Transfers can result in the following adverse effects:
•Increased brokerage, trading and transaction costs;
•Disruption of planned investment strategies;
•Forced and unplanned liquidation and Fund turnover;
•Lost opportunity costs; and
•Large asset swings that decrease the Fund’s ability to provide maximum investment return to all Owners.
In order to try to protect Owners and the Funds from the potential adverse effects of frequent Transfer activity, we have implemented certain market timing policies and procedures (the “Market Timing Procedures”). Our Market Timing Procedures are designed to detect and prevent frequent, short-term Transfer activity that may adversely affect the Funds, Fund shareholders, the Sub-Account, other Owners, beneficiaries, annuitants and owners of other variable contracts we issue that invest in the Sub-Account. We discourage frequent Transfers of Account Value between the Sub-Accounts.
We monitor Transfer activity in the Policy to identify frequent Transfer activity in any Policy. Our current Market Timing Procedures are intended to detect Transfer activity in which the Transfers exceed a certain dollar amount and a certain number of Transfers involving the same Funds within a specific time period. We regularly review transaction reports in an attempt to identify Transfers that exceed our established parameters. We do not include Transfers made pursuant to the dollar-cost averaging and Fund rebalancing programs when monitoring for frequent Transfer activity.
When we identify Transfer activity exceeding our established parameters in a Policy or group of Policies that appear to be under common control, we suspend non-written methods of requesting Transfers for that Policy or group of Policies. All Transfer Requests for the affected Policy or group of Policies must be in writing. We notify the affected Owner(s) in writing of these restrictions.
In addition to our Market Timing Procedures, the Funds may have their own market timing policies and restrictions. While we reserve the right to enforce the Funds’ policies and procedures, Owners and other persons with interests under the Policy should be aware that we may not have the contractual authority or the operational capacity to apply the market timing policies and procedures of the Funds, except that, under SEC rules, we are required to: (1) enter into a written agreement with each Fund or its principal underwriter that obligates us to provide to the Fund promptly upon request certain information about the trading activity of individual Owners, and (2) execute instructions from the Fund to restrict or prohibit further purchases or Transfers by specific Owners who violate the market timing policies established by the Fund.
Some of the Funds have reserved the right to temporarily or permanently refuse payments or Transfer Requests from us if, in the judgment of the Fund’s investment adviser, the Fund would be unable to invest effectively in accordance with its investment objective or policies, or would otherwise potentially be adversely affected. To the extent permitted by law, we reserve the right to delay or refuse to honor a Transfer Request, or to reverse a Transfer at any time we are unable to purchase or redeem shares of any of the Funds because of the Fund’s refusal or restriction on purchases or redemptions. We will notify the Owner(s) of any refusal or restriction on a purchase or redemption by a Fund relating to that Owner’s Transfer Request. Some Funds also may impose redemption fees on short-term trading (i.e., redemptions of mutual fund shares within a certain number of business days after purchase). We reserve the right to implement, administer, and collect any redemption fees imposed by any of the Funds. You should read the prospectus of each Fund for more information about its ability to refuse or restrict purchases or redemptions of its shares, which may be more or less restrictive than our Market Timing Procedures and those of other Funds, and to impose redemption fees.
We apply our Market Timing Procedures consistently to all Owners without special arrangement, waiver or exception. We reserve the right to change our Market Timing Procedures at any time without prior notice as we deem necessary or appropriate to better detect and deter potentially harmful frequent Transfer activity, to comply with state or federal regulatory requirements, or both. We may change our parameters to monitor for different dollar amounts, number of Transfers, time period of the Transfers, or any of these.
Owners seeking to engage in frequent Transfer activity may employ a variety of strategies to avoid detection. Our ability to detect and deter such Transfer activity is limited by operational systems and technological limitations.
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Furthermore, the identification of Owners determined to be engaged in transfer activity that may adversely affect others involves judgments that are inherently subjective. Accordingly, despite our best efforts, we cannot guarantee that our Market Timing Procedures will detect or deter every potential market timer. In addition, because other insurance companies, retirement plans, or both may invest in the Funds, we cannot guarantee that the Funds will not suffer harm from frequent transfer activity in contracts or policies issued by other insurance companies or by retirement plan participants.
Exchange of Policy. You may exchange your Policy for a new policy issued by Great-West that does not provide for variable benefits. The new policy will have the same Policy Date, Issue Age, and Insured as your Policy on the date of the exchange. The exchange must be made within 24 Policy Months after the Issue Date of your Policy and all Policy Debt must be repaid.
The cash value of your current Policy will be applied to the new policy as the Initial Premium.
Age Requirements. An Insured’s Issue Age must be between 20 and 85 for Policies issued on a fully underwritten basis and between 20 and 70 for Policies issued on a guaranteed underwriting or a simplified underwriting basis.
Policy or Registrant Changes
Addition, Deletion or Substitution of Investment Options. Great-West selects the investment options offered though the Contract based on several criteria, including but not limited to asset class coverage, brand recognition, the reputation and tenure of the adviser or sub-adviser, expenses, performance, marketing, availability, investment conditions, and the qualifications of each investment company. Another factor we consider is whether the investment option or an affiliate of the investment option will compensate Great-West for providing certain administrative, marketing, or support services that would otherwise be provided by the investment option, its investment adviser, or its distributor. For more information on such compensation, see “Charges and Deductions” in this prospectus. When we develop and offer a variable annuity product in cooperation with a fund family or a distributor, Great-West will generally include investment options based on recommendations made by the fund family or the distributor, whose selection criteria may differ from our own. We have selected investment options of the Great-West Funds at least in part because they are managed by our directly owned subsidiary.
Great-West does not control the investment options and cannot guarantee that any of the investment options will always be available for allocation of Contributions or Transfers. We retain the right to make changes in the Series Account and in its investments, including the right to establish new Sub-Accounts or to eliminate existing Sub-Accounts. Great-West periodically reviews each investment option and reserves the right to discontinue the offering of any investment option if we determine the investment option no longer meets one or more of the criteria, or if the investment option has not attracted significant allocations. If an investment option is discontinued, we may substitute shares of another investment option or shares of another investment company for the discontinued investment option’s shares. Any share substitution will comply with the requirements of the 1940 Act. If you are contributing to a Sub-Account corresponding to an investment option that is being discontinued, you will be given notice prior to the investment option’s elimination. Before a Sub-Account is eliminated, we will notify you and request that you reallocate the amounts invested in the Sub-Account to be eliminated.
Entire Contract. Your entire contract with us consists of the Policy, including the attached copy of your application and any attached copies of supplemental applications for increases in the Total Face Amount, any endorsements and any riders. Any illustrations prepared in connection with the Policy do not form a part of our contract with you and are intended solely to provide information about how values under the Policy, such as Cash Surrender Value, death benefit and Account Value, will change with the investment experience of the Divisions, and such information is based solely upon data available at the time such illustrations are prepared.
Alteration. Sales representatives do not have any authority to either alter or modify your Policy or to waive any of its provisions. The only persons with this authority are our president, secretary, or one of our vice presidents.
Modification. Upon notice to you, we may modify the Policy if such a modification –
•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.
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We also reserve the right to modify certain provisions of the Policy as stated in those provisions. In the event of any such modification, we may make appropriate amendment to the Policy to reflect such modification.
Assignments. During the lifetime of the Insured, you may assign all or some of your rights under the Policy. All assignments must be filed at our Corporate Headquarters and must be in written form satisfactory to us. The assignment will then be effective as of the date you signed the form, subject to any action taken before we received it. We are not responsible for the validity or legal effect of any assignment.
Notice and Elections. To be effective, all notices and elections under the Policy must be in writing, signed by you, and received by us at our Corporate Headquarters. Certain exceptions may apply. Unless otherwise provided in the Policy, all notices, Requests and elections will be effective when received at our Corporate Headquarters complete with all necessary information.
Account Value
Your Account Value is the sum of your interests in each Division you have chosen, plus your interests in the Fixed Account, plus the amount in your Loan Account. The Account Value varies depending upon the Premiums paid, expense charges applied to Premium, mortality and expense risk charge, service charges, monthly risk charges, partial withdrawals, fees, Policy loans and the net investment factor (described below) for the Divisions to which your Account Value is allocated and the interest credited to the Fixed Account.
We measure the amounts in the Divisions in terms of Units and Unit Values. On any given date, your interest in a Division is equal to the Unit Value multiplied by the number of Units credited to you in that Division. Amounts allocated to a Division will be used to purchase Units of that Division. Units are redeemed when you make partial withdrawals, undertake Policy loans or Transfer amounts from a Division, and for the payment of service charges, monthly mortality and expense charges, monthly risk charges and other fees. The number of Units of each Division purchased or redeemed is determined by dividing the dollar amount of the transaction by the Unit Value for the Division. The Unit Value for each Division was established at $10 for the first Valuation Date of the Division. The Unit Value for any subsequent Valuation Date is equal to the Unit Value for the preceding Valuation Date multiplied by the net investment factor (determined as provided below). The Unit Value of a Division for any Valuation Date is determined as of the close of the Valuation Period ending on that Valuation Date.
Transactions are processed on the date we receive a Premium at our Corporate Headquarters or upon approval of a Request. If your Premium or Request is received on a date that is not a Valuation Date, or after the close of the NYSE on a Valuation Date, the transaction will be processed on the next Valuation Date.
The Account Value on the Policy Date equals:
•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.
We apply your Initial Premium on the Policy Date, which will be the Issue Date (if we have already received your Initial Premium) or the Business Day we receive a Premium equal to, or in excess of, the Initial Premium after we have approved your application.
The Account Value attributable to each Division of the Series Account on the subsequent Valuation Dates is equal to:
•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
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•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.
Net Investment Factor. The net investment factor for each Division for any Valuation Period is determined by dividing (1) by (2) where:
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.
The net investment factor may be greater or less than or equal to one. Therefore, the Unit Value may increase, decrease or remain unchanged.
The net asset value reflects the investment advisory fees and other expenses that are deducted from the assets of each Fund. These fees and expenses are not fixed or specified under the terms of the Policy, may differ between Funds, and may vary from year to year. Fund fees and expenses are described in each Fund prospectus.
The Fixed Account Value is:
•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.
During any Policy Month the Fixed Account Value will be calculated on a consistent basis. For purposes of crediting interest, Policy value deducted, transferred or withdrawn from the Fixed Account is accounted for on a first in first out basis.
The mortality and expense risk charge for the Valuation Period is the annual mortality and expense risk charge divided by 365 multiplied by the number of days in the Valuation Period.
Splitting Units. We reserve the right to split or combine the value of Units. In effecting any such change, strict equity will be preserved and no such change will have a material effect on the benefits or other provisions of your Policy.
Other Provisions and Benefits
Misstatement of Age or Sex (Non-Unisex Policy). If the age or (in the case of a non-unisex Policy) sex of the Insured is stated incorrectly in your Policy application or rider application, we will adjust the amount payable appropriately as described in the Policy.
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If we determine that the Insured was not eligible for coverage under the Policy after we discover a misstatement of the Insured’s age, our liability will be limited to a return of Premiums paid, less any partial withdrawals, any Policy Debt, and the cost for riders.
Suicide. If the Insured, whether sane or insane, commits suicide within two years after your Policy’s Issue Date (one year if your Policy is issued in Colorado or North Dakota), we will not pay any part of the Death Benefit Proceeds. We will pay the Beneficiary the Premiums paid, less the amount of any Policy Debt, any partial withdrawals and the cost for riders.
If the Insured, whether sane or insane, commits suicide within two years after the effective date of an increase in the Total Face Amount (one year if your Policy is issued in Colorado or North Dakota), then our liability as to that increase will be the cost of insurance for that increase and that portion of the Account Value attributable to that increase. The Total Face Amount of the Policy will be reduced to the Total Face Amount that was in effect prior to the increase.
Incontestability. All statements made in the application or in a supplemental application are representations and not warranties. We relied and will continue to rely on those statements when approving the issuance, increase in face amount, increase in death benefit over Premium paid, or change in death benefit option of the Policy. In the absence of fraud, we can use no statement in defense of a claim or to cancel the Policy for misrepresentation unless the statement was made in the application or in a supplemental application. In the absence of fraud, after the Policy has been in force during the lifetime of the Insured for a period of two years from its Issue Date, we cannot contest it except for non-payment of Premiums. However, any increase in the Total Face Amount which is effective after the Issue Date will be incontestable only after such increase has been in force during the lifetime of the Insured for two years from the effective date of coverage of such increase.
Paid-Up Life Insurance. When the Insured reaches Attained Age 121 (if your Policy is in force at that time), the entire Account Value of your Policy (less outstanding Policy Debt) will be applied as a single Premium to purchase “paid-up” insurance which means all premiums have been paid and there are no additional premiums due. Outstanding Policy Debt will be repaid at this time. This repayment may be treated as a taxable distribution to you if your Policy is not a MEC. The net single Premium for this insurance will be based on the 2017 Commissioner’s Standard Ordinary, Sex Distinct, Non-Smoker Mortality Table and 4% interest. The cash value of your paid-up insurance, which initially is equal to the net single Premium, will remain in the Divisions of the Series Account in accordance with your then current allocation. While the paid-up life insurance is in effect your assets will remain in the Series Account. You may change your Division allocation instructions and you may Transfer your cash value among the Divisions. All charges under your Policy, to the extent applicable, will continue to be assessed, except we will no longer make a deduction each Policy Month for the monthly risk charge. Your death benefit will be fixed by the Code for Insured age 99. As your cash value changes based on the investment experience of the Divisions, the death benefit will increase or decrease accordingly. You may surrender the paid-up insurance Policy at any time and, if surrendered within 30 days of a Policy Anniversary, its cash value will not be less than it was on that Policy Anniversary. Please see “Federal Income Tax Considerations - Treatment When Insured Reaches Attained Age 121” below.
Supplemental Benefits. The following supplemental benefit riders are available, subject to certain limitations. An additional monthly risk charge will be assessed for each rider that is in force as part of the monthly deduction from your Account Value. If a supplemental benefit rider is terminated, the monthly risk charge for such rider will end immediately. See fee tables above.
Term Life Insurance Rider. This rider provides term life insurance on the Insured. Coverage is renewable annually until the Insured’s Attained Age 121. The amount of coverage provided under this rider varies from month to month as described below. We will pay the rider’s death benefit to the Beneficiary when we receive Due Proof of death of the Insured while this rider is in force.
This rider provides the same three death benefit options as your Policy. The option you choose under the rider must at all times be the same as the option you have chosen for your Policy. The rider’s death benefit will be determined at the beginning of each Policy Month in accordance with one of those options. For each of the options, any outstanding Policy Debt will reduce your death benefit.
If you purchase this rider, the Total Face Amount shown on your Policy’s specifications page will be equal to the minimum amount of coverage provided by this rider plus the base face amount (which is the minimum death benefit under your Policy without the rider’s death benefit). The minimum allocation of Total Face Amount between your Policy and the rider is 10% and 90% at inception, respectively. The total Death Benefit Payable under the rider and the Policy will be determined as described in “Death Benefit” below, using the Total Face Amount shown on your Policy’s specifications page.
Coverage under this rider will take effect on the latter of:
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•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 monthly risk rate for this rider will be the same as that used for the Policy and the monthly risk charge for the rider will be determined by multiplying the monthly risk rate by the rider’s death benefit. This charge will be calculated on the first day of each Policy Month and added to the Policy’s monthly risk charge.
If you purchase this rider, the sales load and return of expense charge will be proportionately lower as a result of a reduction in commission payments. Commissions payable to sales representatives for the sale of the Policy are calculated based on the total Premium payments. As a result, this rider generally is not offered in connection with any Policy with annual Premium payments of less than $100,000, except for policies issued on a guaranteed issue basis. In our discretion, we may decline to offer this rider or refuse to consent to a proposed allocation of coverage between a Policy and term rider.
If this rider is offered, the commissions will vary depending on the allocation of your coverage between the Policy and the term rider. The same initial Death Benefit will result in the highest commission when there is no term rider, with the commission declining as the portion of the Death Benefit coverage allocated to the term rider increases. Thus, the lowest commission amount is payable, and the lowest amount of sales load deducted from your Premiums will occur, when the maximum term rider is purchased.
You may terminate this rider by Request. This rider also will terminate on the earliest of the following dates:
•the date the Policy is surrendered or terminated;
•the expiration of the grace period of the Policy; or
•the death of the Insured.
Change of Insured Rider (Not available to individual purchasers). This rider permits you to change the Insured under your Policy or any Insured that has been named by virtue of this rider. Before we change the Insured you must provide us with (1) a Request for the change signed by you and approved by us; (2) Evidence of Insurability for the new Insured; (3) evidence that there is an insurable interest between you and the new Insured; (4) evidence that the new Insured’s age, at the nearest birthday, is under 70 years; and (5) evidence that the new Insured was born prior to the Policy Date. We may charge a fee for administrative expenses when you change the Insured. The minimum charge is $100 per change and the maximum charge is $400 per change. When a change of Insured takes effect, Premiums will be based on the new Insured’s age, sex, mortality class and the Premium rate in effect on the Policy Date.
Report to Owner. We will maintain all records relating to the Series Account and the Divisions and the Fixed Account. We will send you a report at least once each Policy Year within 30 days after a Policy Anniversary. The report will show current Account Value, current allocation in each Division, death benefit, Premiums paid, investment experience since your last report, deductions made since the last report, and any further information that may be required by laws of the state in which your Policy was issued. It will also show the balance of any outstanding Policy loans and accrued interest on such loans. There is no charge for this report.
In addition, we will send you the financial statements of the Funds and other reports as specified in the 1940 Act. We also will mail you confirmation notices or other appropriate notices of Policy transactions quarterly or more frequently within the time periods specified by law. Please give us prompt written notice of any address change. Please read your statements and confirmations carefully and verify their accuracy and contact us promptly with any questions.
Dollar Cost Averaging. By Request, you may elect dollar cost averaging in order to purchase Units of the Divisions over a period of time. There is no charge for this service.
Dollar cost averaging permits you to automatically Transfer a predetermined dollar amount, subject to our minimum, at regular intervals from any one or more designated Divisions to one or more of the remaining, then available Divisions. The Unit Value will be determined on the dates of the Transfers. You must specify the percentage to be Transferred into each designated Division. Transfers may be set up on any one of the following frequency periods: monthly, quarterly, semiannually, or annually. The Transfer will be initiated one frequency period following the date of your Request. We will provide a list of Divisions eligible for dollar cost averaging that may be modified from time to time. Amounts Transferred through dollar cost averaging are not counted against the 12 free Transfers allowed in a Policy Year. You may not participate in dollar cost averaging and the rebalancer option (described below) at the same time. Participation in dollar cost averaging does not assure a greater profit, or any profit, nor will it prevent or necessarily alleviate losses in a declining market. We reserve the right to modify, suspend, or terminate dollar cost averaging at any time.
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Rebalancer Option. By Request, you may elect the rebalancer option in order to automatically Transfer Account Value among the Divisions on a periodic basis. There is no charge for this service. This type of transfer program automatically reallocates your Account Value so as to maintain a particular percentage allocation among Divisions chosen by you. The amount allocated to each Division will grow or decline at different rates depending on the investment experience of the Divisions. Rebalancing does not change your Premium allocation unless that option is checked on the rebalancer Request. Your Premium allocation can also be changed by written Request at the address on the first page of this prospectus.
You may Request that rebalancing occur one time only, in which case the Transfer will take place on the date of the Request. This Transfer will count as one Transfer towards the 12 free Transfers allowed in a Policy Year.
You may also choose to rebalance your Account Value on a quarterly, semiannual, or annual basis, in which case the first Transfer will be initiated one frequency period following the date of your Request. On that date, your Account Value will be automatically reallocated to the selected Divisions. Thereafter, your Account Value will be rebalanced once each frequency period. In order to participate in the rebalancer option, your entire Account Value must be included. Transfers made with these frequencies will not count against the 12 free Transfers allowed in a Policy Year.
You must specify the percentage of Account Value to be allocated to each Division and the frequency of rebalancing. You may terminate the rebalancer option at any time by Request.
You may not participate in the rebalancer option and dollar cost averaging at the same time. Participation in the rebalancer option does not assure a greater profit, or any profit, nor will it prevent or necessarily alleviate losses in a declining market. The Company reserves the right to modify, suspend, or terminate the rebalancer option at any time.
Non-Participating. The Policy does not pay dividends.
Premiums
Policy Application, Issuance and Initial Premium. To purchase a Policy, you must submit an application to our Corporate Headquarters. We will then follow our underwriting procedures designed to determine the insurability of the applicant. We may require full underwriting, which includes a medical examination and further information, before your application may be approved. We also may offer the Policy on a simplified underwriting or guaranteed issue basis. Applicants must be acceptable risks based on our applicable underwriting limits and standards. We will not issue a Policy until the underwriting process has been completed to our satisfaction. We reserve the right to reject an application for any lawful reason or to “rate” an Insured as a substandard risk, which will result in increased monthly risk rates. The monthly risk rate also may vary depending on the type of underwriting we use.
You must specify certain information in the application, including the Total Face Amount, the death benefit option and supplemental benefits, if any. The Total Face Amount generally may not be decreased below $100,000.
Upon approval of the application, we will issue to you a Policy on the life of the Insured. A specified Initial Premium must be paid before we issue the Policy. The effective date of coverage for your Policy (which we call the “Policy Date”) will be the date we receive a Premium equal to or in excess of the specified Initial Premium after we have approved your application. If your Premium payment is received on the 29th, 30th or 31st of a month, the Policy will be dated the 28th of that month.
We generally do not accept Premium payments before approval of an application; however, at our discretion, we may elect to do so. While your application is in underwriting, if we accept your Premium payment before approval of your application, we will provide you with temporary insurance coverage in accordance with the terms of our temporary insurance agreement. In our discretion, we may limit the amount of Premium we accept and the amount of temporary coverage we provide. If we approve your application, we will allocate your Premium payment to the Series Account or Fixed Account on the Policy Date, as described below. Otherwise, we will promptly return your payment to you. We will not credit interest to your Premium payment for the period while your application is in underwriting.
We reserve the right to change the terms or conditions of your Policy to comply with differences in applicable state law. Variations from the information appearing in this prospectus due to individual state requirements are described in supplements that are attached to this prospectus or in endorsements to the Policy, as appropriate.
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Free Look Period. During the free look period (ten days or longer where required by state law), you may cancel your Policy. If you exercise the free look privilege, you must return the Policy to our Corporate Headquarters or to the representative from whom you purchased the Policy.
Generally, net Premium will be allocated to the Divisions you selected on the application. However, under certain circumstances described below, the net Premium will first be allocated to the Great-West Government Money Market Division and remain there until the next Valuation Date following the end of the free look period. On that date, the Sub-Account value held in the Great-West Government Money Market Division will be allocated to the Division(s) selected by you. If your Premium payments are received after 4:00 PM EST/EDT, such payments will be credited on the next Valuation Date. Regardless of when the payment is credited, you will receive the utilized values from the date we received your payment.
During the free look period, you may change your Division allocations and your allocation percentages, however depending on whether your state permits the immediate investment of your Premium, changes made during the free look period may not take effect until after the free look period has expired.
Policies returned during the free look period will be void from the Issue Date. In some states, we will refund your current Account Value plus the return of any expense charges deducted. In those states, this amount may be higher or lower than your Premium payments, which means you bear the investment risk during the free look period.
Certain states require that we return the greater of your Account Value (less any surrenders, withdrawals and distributions already received) or the amount of the Premiums received. In those states, we will allocate your net Premium payments to the Great-West Government Money Market Division. We will Transfer the Account Value in that Division to the other Divisions of the Series Account in accordance with your most recent allocation instructions on file at the end of the free look period.
Premium. All Premium payments must be made payable to “Great-West Life & Annuity Insurance Company” and mailed to our Corporate Headquarters. The Initial Premium will be due and payable on or before your Policy’s Issue Date. The minimum Initial Premium will vary based on various factors, including the age of the Insured and the death benefits option you select, but may not be less than $100. You may pay additional Premium payments to us in the amounts and at the times you choose, subject to the limitations described below. To find out whether your Premium payment has been received, contact us at the address or telephone number shown on the first page of this prospectus.
We reserve the right to limit the number of Premium payments we accept on an annual basis. No Premium payment may be less than $100 per Policy without our consent, although we will accept a smaller Premium payment if necessary to keep your Policy in force. We reserve the right to restrict or refuse any Premium payments that exceed the Initial Premium amount shown on your Policy. We also reserve the right not to accept a Premium payment that causes the death benefit to increase by an amount that exceeds the Premium received. Evidence of insurability satisfactory to us may be required before we accept any such Premium.
We will not accept Premium payments that would, in our opinion, cause your Policy to fail to qualify as life insurance under applicable federal tax law. If a Premium payment is made in excess of these limits, we will accept only that portion of the Premium within those limits, and will refund the remainder to you.
Net Premiums. The net Premium is the amount you pay as the Premium less any expense charges applied to Premiums. See “Charges and Deductions - Expense Charge Applied to Premium,” above.
Planned Periodic Premiums. While you are not required to make additional Premium payments according to a fixed schedule, you may select a planned periodic Premium schedule and corresponding billing period, subject to our limits. We will send you reminder notices for the planned periodic Premium, unless you Request to have reminder notices suspended. You are not required, however, to pay the planned periodic Premium; you may increase or decrease the planned periodic Premium subject to our limits, and you may skip a planned payment or make unscheduled payments. Depending on the investment performance of the Divisions you select, the planned periodic Premium may not be sufficient to keep your Policy in force, and you may need to change your planned payment schedule or make additional payments in order to prevent termination of your Policy.
Death Benefits
Death Benefit. If your Policy is in force at the time of the Insured’s death, we will pay the Beneficiary an amount based on the death benefit option you select once we have received Due Proof of the Insured’s death. The amount payable will be:
•the amount of the selected death benefit option, less
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•the value of any Policy Debt on the date of the Insured’s death, less
•any accrued and unpaid Policy charges.
We will pay this amount to the Beneficiary in one lump sum, unless the Beneficiary and we agree on another form of settlement. We will pay interest, at a rate not less than that required by law, on the amount of Death Benefit Proceeds, if payable in one lump sum, from the date of the Insured’s death to the date of payment.
In order to meet the definition of life insurance under the Code, section 7702 of the Code defines alternative testing procedures for the minimum death benefit under a Policy. See “Federal Income Tax Considerations - Tax Status of the Policy,” below. Your Policy must qualify under the cash value accumulation test (“CVAT”).
Under the CVAT testing procedures, there is a minimum death benefit required at all times equal to your Account Value multiplied by a pre-determined factor. The factors used to determine the minimum death benefit vary by age. The factors (expressed as percentages) used for the CVAT are set forth in your Policy.
The Policy has two death benefit options.
Option 1. The “Level Death” Option. Under this option, the death benefit is –
•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.
This death benefit option should be selected if you want to minimize your cost of insurance (monthly risk charge).
Option 2. The “Coverage Plus” Option. Under this option, the death benefit is –
•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.
This death benefit option should be selected if you want to maximize your death benefit.
Your Account Value and death benefit fluctuate based on the performance of the investment options you select and the expenses and deductions charged to your account. See the “Account Value” and “Charges and Deductions” sections of this prospectus.
There is no minimum death benefit guarantee associated with this Policy.
Changes in Death Benefit Option. After the first Policy Year, but not more than once each Policy Year, you may change the death benefit option by Request. Any change will be effective on the first day of the Policy Month following the date we approve your Request. A maximum administrative fee of $100 will be deducted from your Account Value each time you change your death benefit option.
A change in the death benefit option will not change the amount payable upon the death of the Insured on the date of change. Any change is subject to the following conditions:
•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.
Changes in Total Face Amount. You may increase or decrease the Total Face Amount of your Policy at any time within certain limits.
Minimum Changes. Each increase or decrease in the Total Face Amount must be at least $25,000. We reserve the right to change the minimum amount by which you may change the Total Face Amount.
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Increases in Total Face Amount. To Request an increase in Total Face Amount, you must provide satisfactory evidence of the Insured’s insurability. Once approved by us, an increase will become effective on the Policy Anniversary following our approval of your Request, subject to the deduction of the first Policy Month’s monthly risk charge, service charge, any extra risk charge if the Insured is in a rated class and the cost of any riders.
Each increase to the Total Face Amount is considered to be a new segment to the Policy. When an increase is approved, Premium is allocated against the original Policy segment up to the seven-pay Premium limit established on the Issue Date. Any excess Premium is then allocated toward the new segment. Each segment will have a separate target Premium associated with it. The expense charge applied to Premium is higher up to target and lower for Premium in excess of the target as described in detail in the “Charges and Deductions” section of this prospectus. The expense charge formula will apply to each segment based on the target Premium for that segment. In addition, each segment will have a new incontestability period and suicide exclusion period as described in the “Other Provisions and Benefits” section of this prospectus.
Decreases in Total Face Amount. A decrease in Total Face Amount will become effective at the beginning of the next Policy Month following our approval of your Request. The Total Face Amount after the decrease must be at least $100,000.
For purposes of the incontestability provision of your Policy, any decrease in Total Face Amount will be applied in the following order:
•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.
Surrenders and Withdrawals
Surrenders. You may surrender your Policy for its Cash Surrender Value at any time while the Insured is living. If you do, the insurance coverage and all other benefits under the Policy will terminate. To surrender your Policy, contact us at the address or telephone number shown on the first page of this prospectus. We will send you the paperwork necessary for you to Request the surrender of your Policy. The proceeds of a surrender will be payable within seven days of our receipt of the completed Request.
We will determine your Cash Surrender Value (minus any charges not previously deducted) as of the end of the first Valuation Date after we receive your Request for surrender.
If you withdraw part of the Cash Surrender Value, your Policy’s death benefit will be reduced and you may incur taxes and tax penalties.
You may borrow from us using your Account Value as collateral.
A surrender may have tax consequences, including tax penalties. See “Federal Income Tax Considerations – Tax Treatment of Policy Benefits,” below.
Partial Withdrawal. You may Request a partial withdrawal of Account Value at any time while the Policy is in force. The amount of any partial withdrawal must be at least $500 and may not exceed 90% of your Account Value less the value of the Loan Account. A partial withdrawal fee will be deducted from your Account Value for all partial withdrawals after the first made during the same Policy Year. This administrative fee is guaranteed to be no greater than $25. To Request a partial withdrawal, contact us at the address or telephone number shown on the first page of this prospectus. We will send you the paperwork necessary for you to request a withdrawal from your Policy. The proceeds of any such partial withdrawal will be payable within seven days of our receipt of the completed Request.
The Death Benefit Proceeds will be reduced by the amount of any partial withdrawals.
Your Account Value will be reduced by the amount of a partial withdrawal. The amount of a partial withdrawal will be withdrawn from the Divisions in proportion to the amounts in the Divisions bearing on your Account Value. You cannot repay amounts taken as a partial withdrawal. Any subsequent payments received by us will be treated as additional Premium payments and will be subject to our limitations on Premiums.
A partial withdrawal may have tax consequences. See “Federal Income Tax Considerations – Tax Treatment of Policy Benefits,” below.
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Loans
Policy Loans. You may Request a Policy loan of up to 90% of your Account Value, decreased by the amount of any outstanding Policy Debt on the date the Policy loan is made less any accrued loan interest and less the current monthly deductions remaining for the balance of the Policy Year. When a Policy loan is made, a portion of your Account Value equal to the amount of the Policy loan will be allocated to the Loan Account as collateral for the loan. This amount will not be affected by the investment experience of the Series Account while the loan is outstanding and will be subtracted from the Divisions in proportion to the amounts in the Divisions bearing on your Account Value. The minimum Policy loan amount is $500.
The interest rate on the Policy loan will be determined annually, using a simple interest formula, at the beginning of each Policy Year. Specific loan interest rate information can be obtained by calling 888-353-2654. That interest rate will be guaranteed for that Policy Year and will apply to all Policy loans outstanding during that Policy Year. Interest is due and payable on each Policy Anniversary. Interest not paid when due will be added to the principal amount of the loan and will bear interest at the loan interest rate.
Presently, the maximum interest rate for Policy loans is the Moody’s Corporate Bond Yield Average - Monthly Average Corporates, which is published by Moody’s Investor Service, Inc. If the Moody’s Corporate Bond Yield Average ceases to be published, the maximum interest rate for Policy loans will be derived from a substantially similar average adopted by your state’s Insurance Commissioner.
We must reduce our Policy loan interest rate if the maximum loan interest rate is lower than the loan interest rate for the previous Policy Year by one-half of one percent or more.
We may increase the Policy loan interest rate but such increase must be at least one-half of one percent. No increase may be made if the Policy loan interest rate would exceed the maximum loan interest rate.
We will send you advance notice of any increase in the Policy loan rate.
Interest will be credited to amounts held in the Loan Account using a compound interest formula. The rate will be no less than the Policy loan interest rate then in effect less a maximum of 0.9%.
All payments we receive from you will be treated as Premium payments unless we have received notice, in form satisfactory to us, that the funds are for loan repayment. If you have a Policy loan, it is generally advantageous to repay the loan rather than make a Premium payment because Premium payments incur expense charges whereas loan repayments do not. Loan repayments will first reduce the outstanding balance of the Policy loan and then accrued but unpaid interest on such loans. We will accept repayment of any Policy loan at any time while the Policy is in force. Amounts paid to repay a Policy loan will be allocated to the Divisions in accordance with your allocation instructions then in effect at the time of repayment. Any amount in the Loan Account used to secure the repaid loan will be allocated back to the Sub-Accounts.
A Policy loan, whether or not repaid, will affect the Death Benefit Proceeds, payable upon the Insured’s death, and the Account Value because the investment results of the Divisions do not apply to amounts held in the Loan Account. The longer a loan is outstanding, the greater the effect is likely to be, depending on the investment results of the Divisions while the loan is outstanding. The effect could be favorable or unfavorable.
Lapse and Reinstatement
Lapse and Continuation of Coverage. If you cease making Premium payments, coverage under your Policy and any riders to the Policy will continue until your Account Value, less any Policy Debt, is insufficient to cover the monthly deduction. When that occurs, the grace period will go into effect.
Grace Period. If the first day of a Policy Month occurs during the Valuation Period and your Account Value, less any Policy Debt, is not sufficient to cover the monthly deduction for that Policy Month, then your Policy will enter the grace period described below. If you do not pay sufficient additional Premiums during the grace period, your Policy will terminate without value.
The grace period will allow 61 days for the payment of Premium sufficient to keep the Policy in force. Any such Premium must be in an amount sufficient to cover deductions for the monthly risk charge, the service charge, the cost for any riders and any extra risk charge if the Insured is in a rated class for the next two Policy Months. Notice of Premium due will be mailed to your
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last known address or the last known address of any assignee of record at least 31 days before the date coverage under your Policy will cease. If the Premium due is not paid within the grace period, then the Policy and all rights to benefits will terminate without value at the end of the 61-day period. The Policy will continue to remain in force during this grace period. If the Death Benefit Proceeds become payable by us during the grace period, then any due and unpaid Policy charges will be deducted from the amount payable by us.
Termination of Policy. Your Policy will terminate on the earliest of the date we receive your Request to surrender, the expiration date of the grace period due to insufficient value or the date of death of the Insured. Upon lapse or termination, the Policy no longer provides insurance benefits.
Reinstatement. Before the Insured’s death, we will reinstate your Policy, provided that the Policy has not been surrendered, and provided further that:
•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.
A reinstated Policy’s Total Face Amount may not exceed the Total Face Amount at the time of termination. Your Account Value on the reinstatement date will reflect:
•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 effective date of reinstatement will be the date the application for reinstatement is approved by us.
Deferral of Payment. We will usually pay any amount due from the Series Account within seven days after the Valuation Date following your Request giving rise to such payment or, in the case of death of the Insured, Due Proof of such death. Payment of any amount payable from the Series Account on death, surrender, partial withdrawal, or Policy loan may be postponed whenever:
•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.
Federal Income Tax Considerations
The following summary provides a general description of the federal income tax considerations associated with the Policy and does not purport to be complete or to cover all situations. This discussion is not intended as tax advice. You should consult counsel or other competent tax advisers for more complete information. This discussion is based upon our understanding of the Internal Revenue Service’s (the “IRS”) current interpretation of current federal income tax laws. We make no representation as to the likelihood of continuation of the current federal income tax laws or of the current interpretations by the IRS. We do not make any guarantee regarding the tax status of any Policy or any transaction regarding the Policy.
The Policy may be used in various arrangements, including non-qualified deferred compensation or salary continuance plans, split dollar insurance plans, executive bonus plans, retiree medical benefit plans and others. The tax consequences of such plans may vary depending on the particular facts and circumstances of each individual arrangement. Therefore, if the use of the Policy in any such arrangement is contemplated, you should consult a qualified tax adviser for advice on the tax attributes and consequences of the particular arrangement.
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Tax Status of the Policy
A Policy has certain tax advantages when treated as a life insurance contract within the meaning of section 7702 of the Code. We believe that the Policy meets the section 7702 definition of a life insurance contract and will take whatever steps are appropriate and reasonable to attempt to cause the Policy to comply with section 7702. We reserve the right to amend the Policy to comply with any future changes in the Code, any regulations or rulings under the Code and any other requirements imposed by the IRS.
Diversification of Investments. Section 817(h) of the Code requires that the investments of each Division of the Series Account be “adequately diversified” in accordance with certain Treasury Department regulations. Disqualification of the Policy as a life insurance contract for failure to comply with the diversification requirements would result in the imposition on you of federal income tax at ordinary income tax rates with respect to the earnings allocable to the Policy in the year of the failure and all prior years prior to the receipt of payments under the Policy. We believe that the Divisions will be adequately diversified.
Policy Owner Control. In connection with its issuance of temporary and proposed regulations under Section 817(h) in 1986, the Treasury Department announced that those regulations did not “provide guidance concerning the circumstances in which investor control of the investments of a segregated asset account may cause the investor (i.e., the Owner), rather than the insurance company to be treated as the owner of the assets in the account” (which would result in the current taxation of the income on those assets to the Owner). In Revenue Ruling 2003-91, the IRS provided such guidance by describing the circumstances under which the owner of a variable contract will not possess sufficient control over the assets underlying the contract to be treated as the owner of those assets for federal income tax purposes. Rev. Rul. 2003-91 states that the determination of whether the owner of a variable contract is to be treated as the owner of the assets held by the insurance company under the contract will depend on all of the facts and circumstances. We do not believe that your ownership rights under the Policy would result in your being treated as the Owner of the assets of the Policy under Rev. Rul. 2003-91. However, we do not know whether additional guidance will be provided by the IRS on this issue and what standards may be contained in such guidance. Therefore, we reserve the right to modify the Policy as necessary to attempt to prevent an Owner from being considered the owner of a pro rata share of the assets of the Policy.
The following discussion assumes that your Policy will qualify as a life insurance contract for federal income tax purposes.
Tax Treatment of Policy Benefits
Life Insurance Death Benefit Proceeds. In general, the amount of the Death Benefit Payable under your Policy is excludible from your Beneficiary’s gross income under the Code.
If the death benefit is not received in a lump sum and is, instead, applied under a proceeds option agreed to by us and the Beneficiary, payments generally will be prorated between amounts attributable to the death benefit, which will be excludible from the Beneficiary’s income, and amounts attributable to interest (occurring after the Insured’s death), which will be includable in the Beneficiary’s income.
Tax Deferred Accumulation. Any increase in your Account Value is generally not taxable to you. If you receive or are deemed to receive amounts from the Policy before the Insured dies, see the following section entitled “Distributions” for a more detailed discussion of the taxability of such payments.
Depending on the circumstances, any of the following transactions may have federal income tax consequences:
•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.
In addition, federal, state and local transfer and other tax consequences of ownership or receipt of Death Benefit Proceeds will depend on your circumstances and those of the named Beneficiary. Whether partial withdrawals (or other amounts deemed to be distributed) constitute income subject to federal income tax depends, in part, upon whether your Policy is considered a MEC.
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Surrenders. If you surrender your Policy, you will recognize ordinary income to the extent the Account Value exceeds the “investment in the contract,” which is generally the total of Premiums and other consideration paid for the Policy, less all amounts previously received under the Policy to the extent those amounts were excludible from gross income.
Modified Endowment Contracts. Section 7702A of the Code treats certain life insurance contracts as MECs. In general, a Policy will be treated as a MEC if total Premiums paid at any time during the first seven Policy Years exceed the sum of the net level Premiums which would have been paid on or before that time if the Policy provided for paid-up future benefits after the payment of seven level annual Premiums (“seven-pay test”). In addition, a Policy may be treated as a MEC if there is a “material change” to the Policy.
We will monitor your Premium payments and other Policy transactions and notify you if a payment or other transaction might cause your Policy to become a MEC. We will not invest any Premium or portion of a Premium that would cause your Policy to become a MEC without instruction to do so from you. We will promptly notify you or your agent of the excess cash received. We will not process the Premium payment unless we receive a MEC acceptance form or Policy change form within 48 hours of receipt of the excess funds. If paperwork is received that allows us to process the excess cash, the effective date will be the date of the new paperwork.
Further, if a transaction occurs which decreases the Total Face Amount of your Policy during the first seven years, we will retest your Policy, as of the date of its purchase, based on the lower Total Face Amount to determine compliance with the seven-pay test. Also, if a decrease in Total Face Amount occurs within seven years of a “material change,” we will retest your Policy for compliance as of the date of the “material change.” Failure to comply in either case would result in the Policy’s classification as a MEC regardless of our efforts to provide a payment schedule that would not otherwise violate the seven-pay test.
The rules relating to whether a Policy will be treated as a MEC are complex and cannot be fully described in the limited confines of this summary. Therefore, you should consult with a competent tax adviser to determine whether a particular transaction will cause your Policy to be treated as a MEC.
Exchanges. Section 1035 of the Code provides that no gain or loss will be recognized on the exchange of one life insurance contract for another. Generally, a life insurance contract issued in an exchange for another life insurance contract is treated for purposes of qualification under section 7702 of the Code as a new issue as of the date of the exchange. A contract's status as a MEC cannot be changed as a result of an exchange. A MEC includes any life insurance contract that is received in exchange for a MEC.
Distributions
Distributions Under a Policy That Is Not a MEC. If your Policy is not a MEC, a distribution is generally treated first as a tax-free recovery of the “investment in the contract,” and then as a distribution of taxable income to the extent the distribution exceeds the “investment in the contract.” An exception is made for cash distributions that occur in the first 15 Policy Years as a result of a decrease in the death benefit or other change that reduces benefits under the Policy that are made for purposes of maintaining compliance with section 7702. Such distributions are taxed in whole or part as ordinary income (to the extent of any gain in the Policy) under rules prescribed in section 7702.
If your Policy is not a MEC, Policy loans and loans secured by the Policy are generally not treated as distributions. Such loans are instead generally treated as your indebtedness.
Finally, if your Policy is not a MEC, distributions (including distributions upon surrender), Policy loans and loans secured by the Policy are not subject to the ten percent additional tax applicable to distributions from a MEC.
Distributions Under Modified Endowment Contracts. If treated as a MEC, your Policy will be subject to the following tax rules:
•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:
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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).
Multiple Policies. All MECs issued by us (or our affiliates) to you during any calendar year will be treated as a single MEC for purposes of determining the amount of a Policy distribution that is taxable to you.
Treatment When Insured Reaches Attained Age 121. As described above, when the Insured reaches Attained Age 121, we will issue you a “paid-up” life insurance Policy. We believe that the paid-up life insurance Policy will continue to qualify as a “life insurance contract” under the Code. However, there is some uncertainty regarding this treatment. It is possible, therefore, that you would be viewed as constructively receiving the Cash Surrender Value in the year in which the Insured attains age 121 and would realize taxable income at that time, even if the Death Benefit Proceeds were not distributed at that time. In addition, any outstanding Policy Debt will be repaid at that time. This repayment may be treated as a taxable distribution to you, if your contract is not a MEC.
The IRS has issued Revenue Procedure 2018-20 providing a safe harbor concerning the application of Sections 7702 and 7702A to life insurance contracts that have mortality guarantees based on the 2001 CSO Table and which may continue in force after an insured attains age 100. If a contract satisfies all the requirements of Sections 7702 and 7702A using all of the Age 100 Safe Harbor Testing Method requirements set forth in Rev. Proc. 2018-20, the IRS will not challenge the qualification of that contract under Sections 7702 and 7702A. Rev. Proc. 2018-20 also states that “No adverse inference should be drawn with respect to the qualification of a contract as a life insurance contract under §7702, or its status as not a MEC under §7702A, merely by reason of a failure to satisfy all of the requirements of the Age 100 Safe Harbor.”
Federal Income Tax Withholding. We are required to withhold 10% on that portion of a Policy distribution that is taxable, unless you direct us in writing not to do so at or before the time of the Policy distribution. As the Owner you are responsible for the payment of any taxes and early distribution penalties that may be due on Policy distributions. We may be required to withhold at a rate of 30% under the Foreign Account Tax Compliance Act (“FATCA”) on certain distributions to foreign financial institutions and non-financial foreign entities holding accounts on behalf of and/or the assets of U.S. persons unless the foreign entities provide us with certain certifications regarding their status under FATCA on the applicable IRS forms. Prospective purchasers with accounts in foreign financial institutions or non-financial foreign entities are advised to consult with a competent tax advisor regarding the application of FATCA to their purchase situation.
Actions to Ensure Compliance with the Tax Law. We believe that the maximum amount of Premiums we intend to permit for the Policies will comply with the Code definition of a “life insurance contract.” We will monitor the amount of your Premiums, and, if you pay a Premium during a Policy Year that exceeds those permitted by the Code, we will promptly refund the Premium or a portion of the Premium before any allocation to the Funds. We reserve the right to increase the death benefit (which may result in larger charges under a Policy) or to take any other action deemed necessary to ensure the compliance of the Policy with the federal tax definition of a life insurance contract.
Trade or Business Entity Owns or Is Directly or Indirectly a Beneficiary of the Policy. Where a Policy is owned by other than a natural person, the Owner’s ability to deduct interest on business borrowing unrelated to the Policy can be impacted as a result of its ownership of cash value life insurance. No deduction will be allowed for a portion of a taxpayer’s otherwise deductible interest expense unless the Policy covers only one individual, and such individual is, at the time first covered by the Policy, a 20 percent owner of the trade or business entity that owns the Policy, or an officer, director, or employee of such trade or business.
Although this limitation generally does not apply to Policies held by natural persons, if a trade or business (other than one carried on as a sole proprietorship) is directly or indirectly the Beneficiary under a Policy (e.g., pursuant to a split-dollar agreement), the Policy will be treated as held by such trade or business. The effect will be that a portion of the trade or business entity’s deduction for its interest expenses will be disallowed unless the above exception for a 20 percent owner, employee, officer or director applies.
The portion of the entity’s interest deduction that is disallowed will generally be a pro rata amount which bears the same ratio to such interest expense as the taxpayer’s average unborrowed cash value bears to the sum of the taxpayer’s average unborrowed cash value and average adjusted bases of all other assets. Any corporate or business use of the life insurance should be carefully reviewed by your tax adviser with attention to these rules as well as any other rules and possible tax law changes that could occur with respect to corporate-owned life insurance.
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In Revenue Ruling 2011-9, the IRS held that the status of an insured as an employee “at the time first covered” for purposes of Section 264(f) does not carry over from a contract given up in a Section 1035 tax-free exchange to a contract received in such an exchange. Therefore, the pro rata interest expense disallowance exception of Section 264(f)(4) does not apply to new Policies received in Section 1035 tax-free exchanges unless such Policies also qualify for the exception provided by Section 264(f)(4) of the Code.
Employer-Owned Life Insurance. Section 101(j) of the Code denies the tax-free treatment of death benefits payable under an employer-owned life insurance contract unless certain notice and consent requirements are met and either (1) certain rules relating to the insured employee’s status are satisfied or (2) certain rules relating to the payment of the “amount received under the contract” to, or for the benefit of, certain beneficiaries or successors of the insured employee are satisfied. The new rules apply to life insurance contracts owned by corporations (including S corporations), individual sole proprietors, estates and trusts and partnerships that are engaged in a trade or business. Any business contemplating the purchase of a Policy on the life of an employee should consult with its legal and tax advisers regarding the applicability of the new legislation to the proposed purchase.
Split Dollar Life Insurance. A tax adviser should also be consulted with respect to the split dollar regulations if you have purchased or are considering the purchase of a Policy for a split dollar insurance plan. Any business contemplating the purchase of a new life insurance contract or a change in an existing contract should consult a tax adviser.
Other Employee Benefit Programs. Complex rules may apply when a Policy is held by an employer or a trust, or acquired by an employee, in connection with the provision of employee benefits. These Policy owners also must consider whether the Policy was applied for by, or issued to, a person having an insurable interest under applicable state law, as the lack of insurable interest may, among other things, affect the qualification of the Policy as life insurance for federal income tax purposes and the right of the Beneficiary to death benefits. Employers and employer-created trusts may be subject to reporting, disclosure and fiduciary obligations under the Employee Retirement Income Security Act of 1974, as amended. You should consult your legal adviser.
Policy Loan Interest. Generally, no tax deduction is allowed for interest paid or accrued on any indebtedness under a Policy.
Change of Insured Rider. The Company makes no representations concerning the tax effects of the change of insured rider. Owners are responsible for seeking tax counsel regarding the tax effects of the Rider. The Company reserves the right to refund cash value exceeding allowable limits for tax exempt purposes, or that would be charged as current interest income to Owners.
Investment Income Surtax. Taxable distributions from life insurance policies are considered “investment income” for purposes of the investment income surtax on investment income. Thus, in certain circumstances, a 3.8% tax may be applied to some or all of the taxable portion of distributions (e.g., earnings) to individuals, trusts, and estates whose income exceeds certain threshold amounts as follows: an amount equal to the lesser of (a) “net investment income”; or (b) the excess of a taxpayer’s modified adjusted gross income over a specified income threshold ($250,000 for married couples filing jointly, $125,000 for married couples filing separately, and $200,000 for everyone else). The IRS has issued regulations that treat taxable distributions from life insurance policies as “Net investment income.” Please discuss the impact of the Investment Income Surtax on you with a competent tax advisor.
Our Taxes. We are taxed as a life insurance company under part I of subchapter L of the Code. The operations of the Series Account are taxed as part of our operations. Investment income and realized capital gains are not taxed to the extent that they are applied under the Policies. As a result of the Tax Cuts and Jobs Act of 2017, we are generally required to capitalize and amortize certain Policy acquisition expenses over a fifteen year period rather than currently deducting such expenses. This so-called “deferred acquisition cost” tax (“DAC tax”) applies to the deferred acquisition expenses of a Policy and results in a significantly higher corporate income tax liability for Great-West. We reserve the right to adjust the amount of a charge to Premium to compensate us for these anticipated higher corporate income taxes.
A portion of the expense charges applied to Premium is used to offset the federal, state or local taxes that we incur which are attributable to the Series Account or the Policy. We reserve the right to adjust the amount of this charge.
Summary
•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.
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•If your Policy becomes a MEC, partial withdrawals, Policy loans and surrenders may incur taxes and tax penalties.
Corporate Tax Shelter Requirements
The Company does not believe that any purchase of a Policy by an Owner pursuant to this offering will be subject to the tax shelter registration, customer list or reporting requirements under the Code and implementing regulations. All Owners that are corporations are advised to consult with their own tax and/or legal counsel and advisers, to make their own determination as to the applicability of the disclosure requirements of IRC § 6011 and Treas. Reg. Section 1.6011-4 to their federal income tax returns.
Legal Proceedings
There are no pending legal proceedings that would have an adverse material effect on the Series Account or on IDI. Great-West is engaged in various kinds of routine litigation that, in our judgment, is not material to its total assets or material with respect to the Series Account.
Legal Matters
Pursuant to Commodity Futures Trading Commission Rule 4.5, Great-West has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act. Therefore, it is not subject to registration or regulation as a commodity pool operator under the Commodity Exchange Act.
The law firm of Carlton Fields, P.A., 1025 Thomas Jefferson St., N.W., Suite 400 West, Washington, D.C. 20007-5208, serves as special counsel to Great-West with regard to the federal securities laws.
Cyber Security Risks
Because our variable life insurance contract business is highly dependent upon the effective operation of our computer systems and those of our business partners, our business is vulnerable to disruptions from utility outages and susceptible to operational and information security risks resulting from information system failures (e.g., hardware and software malfunctions), cyber-attacks, and similar incidents or events. These risks include, among other things, the theft, loss, misuse, corruption, and destruction of data maintained online or digitally, denial of service on our website and other operational disruption, unauthorized access to or release of confidential Owner information, and unintentional events and occurrences. Such system failures, cyber-attacks, and similar incidents or events affecting us, the Funds, intermediaries and other affiliated or third-party service providers or business partners may adversely affect us and your Policy value. For instance, system failures, cyber-attacks, and similar incidents or events may interfere with our processing of Policy transactions, including the processing of Transfer Requests from our website or with the Funds, impact our ability to calculate Unit Values, cause the release, loss, and possible destruction of confidential owner or business information, impede order processing, subject us and/or our service providers, intermediaries, and business partners to regulatory inquiries and proceedings (possibly resulting in fines and/or penalties), litigation, financial losses and other costs, and/or cause reputational damage. Cyber security risks may also impact the issuers of securities in which the Funds invest, which may cause the Funds underlying your Policy to lose value. The constant change in technologies and sophistication and activities of hackers and others continue to pose new and significant cyber security threats. While there can be no assurance that we or the Funds or our service providers or business partners will avoid these risks at all times or avoid losses affecting your Policy due to cyber-attacks, information security breaches, or similar incidents or events in the future, we take reasonable steps to mitigate these risks and secure our systems from such risks.
Abandoned Property Requirements
Every state has unclaimed property laws that generally provide for escheatment to the state of unclaimed property (including proceeds of life insurance policies) under various circumstances. This “escheatment” is revocable, however, and the state is obligated to pay the applicable proceeds if the property owner steps forward to claim it with the proper documentation. To help prevent such escheatment, it is important that you keep your policy and other information on file with us up to date, including the names, contact information, and identifying information for owners, beneficiaries, and other payees. Such updates should be communicated by writing to the Company at 8515 E. Orchard Road, 9T2, Greenwood Village, CO 80111, by calling 888-353-2654, by sending an email to gwexecbenefits@greatwest.com or via the web at www.greatwest.com/executivebenefits.
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Financial Statements
Great-West’s financial statements, which are included in the Statement of Additional Information (“SAI”), should be considered only as bearing on our ability to meet our obligations with respect to the death benefit and our assumption of the mortality and expense risks. They should not be considered as bearing on the investment performance of the Fund shares held in the Series Account.
Independent Registered Public Accounting Firm
The financial statements and financial highlights of each of the investment divisions of the COLI VUL-2 Series Account of Great-West Life & Annuity Insurance Company included in the Statement of Additional Information have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report appearing in the Registration Statement. Such financial statements are included in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing.
Independent Auditors
The statutory-basis financial statements of Great-West Life & Annuity Insurance Company included in the Statement of Additional Information included in the Registration Statement have been audited by Deloitte & Touche LLP, independent auditors, as stated in their report appearing therein, and are included in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing.
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Appendix A – Glossary of Terms
Unless otherwise defined in this prospectus, capitalized terms shall have the meaning set forth below.
Account Value – The sum of the value of your interests in the Divisions, the Fixed Account and the Loan Account. This amount reflects: (1) the Premiums you pay; (2) the investment performance of the Divisions you select; (3) any Policy loans or partial withdrawals; (4) your Loan Account balance; and (5) the charges we deduct under the Policy.
Attained Age – The age of the Insured, nearest birthday, as of the Policy Date and each Policy Anniversary thereafter.
Beneficiary – The person(s) named by the Owner to receive the Death Benefit Proceeds upon the death of the Insured.
Business Day – Any day that we are open for business. We are open for business every day that the NYSE is open for trading.
Cash Surrender Value – is equal to:
(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.
Corporate Headquarters – Great-West Life & Annuity Insurance Company, 8515 E. Orchard Road
Greenwood Village, Colorado 80111
Telephone: (303) 737-3000, or such other address as we may hereafter specify to you by written notice.
Death Benefit Proceeds – The amount determined in accordance with the terms of the Policy which is payable at the death of the Insured. This amount is the death benefit, decreased by the amount of any outstanding Policy Debt, and increased by the amounts payable under any supplemental benefits.
Divisions – Divisions into which the assets of the Series Account are divided, each of which corresponds to and contains shares of a Fund. Divisions may also be referred to as “investment divisions” or “Sub-Accounts” in the prospectus, SAI or Series Account financial statements.
Due Proof – Such evidence as we may reasonably require in order to establish that Death Benefit Proceeds are due and payable.
Effective Date – The date on which the first Premium payment is credited to the Policy.
Evidence of Insurability – Information about an Insured that is used to approve or reinstate this Policy or any additional benefit.
Fixed Account – A division of our General Account that provides a fixed interest rate. This account is not part of and does not depend on the investment performance of the Sub-Accounts. The Fixed Account is not an available option for Pre-2009 Policies.
Fund – An underlying mutual fund in which a Division invests. Each Fund is an investment company registered with the SEC or a separate investment series of a registered investment company.
General Account – All of our assets other than those held in a separate investment account.
Initial Premium – The initial Premium amount specified in a Policy.
Insured – The person whose life is insured under the Policy.
Issue Age – The Insured’s age as of the Insured’s birthday nearest the Policy Date.
Issue Date – The date on which we issue a Policy.
Loan Account – All outstanding loans plus credited loan interest held in the General Account of the Company. The Loan Account is not part of the Series Account.
A-1
Loan Account Value – The sum of all outstanding loans plus credited loan interest for this Policy.
MEC – Modified Endowment Contract. For more information regarding MECs, see “Modified Endowment Contracts” above.
NYSE – New York Stock Exchange.
Owner – The person(s) named in the application who is entitled to exercise all rights and privileges under the Policy, while the Insured is living. The purchaser of the Policy will be the Owner unless otherwise indicated in the application.
Policy Anniversary – The same day in each succeeding year as the day of the year corresponding to the Policy Date.
Policy Date – The effective date of coverage under this Policy. The Policy Months, Policy Years and Policy Anniversaries are measured from the Policy Date.
Policy Debt – The principal amount of any outstanding loan against the Policy plus accrued but unpaid interest on such loan.
Policy Month – The one-month period commencing on the same day of the month as the Policy Date.
Policy Year – The one-year period commencing on the Policy Date or any Policy Anniversary and ending on the next Policy Anniversary.
Pre-2009 Policy – A Policy issued before January 1, 2009. Owners of a Pre-2009 Policy may continue to make additional premium payments. For information about how the Pre-2009 Policy differs from the Policy that we offer until April 30, 2011, please see Appendix B.
Premiums – Amounts received and allocated to the Sub-Account(s) prior to any deductions.
Request – Any instruction in a form, written, telephoned or computerized, satisfactory to the Company and received in good order at the Corporate Headquarters from the Owner or the Owner’s assignee (as specified in a form acceptable to the Company) or the Beneficiary, (as applicable) as required by any provision of this Policy or as required by the Company. The Request is subject to any action taken or payment made by the Company before it was processed.
SEC – The United States Securities and Exchange Commission.
Series Account – The segregated investment account established by the Company as a separate account under Colorado law named the COLI VUL-2 Series Account. It is registered as a unit investment trust under the 1940 Act.
Sub-Account – Sub-division(s) of the Owner’s Account Value containing the value credited to the Owner from the Series Account. Sub-Accounts may also be referred to as “investment divisions” or “Divisions” in the prospectus, SAI or Series Account financial statements.
Surrender Benefit – Account Value less any outstanding Policy loans and less accrued loan interest.
Total Face Amount – The amount of life insurance coverage you request as specified in your Policy.
Transaction Date – The date on which any Premium payment or Request from the Owner will be processed by the Company. Premium payments and Requests received after 4:00 p.m. EST/EDT will be deemed to have been received on the next Business Day. Requests will be processed and the Sub-Account value will be valued on the day that the Premium payments or Request is received and the NYSE is open for trading.
Transfer – The moving of money from one or more Division(s) or the Fixed Account to one or more Division(s) or the Fixed Account.
Unit – An accounting unit of measurement that we use to calculate the value of each Division.
Unit Value – The value of each Unit in a Division.
A-2
Valuation Date – The date on which the net asset value of each Fund is determined. A Valuation Date is each day that the NYSE is open for regular business. The value of a Division’s assets is determined at the end of each Valuation Date (generally 4:00 p.m. EST/EDT). To determine the value of an asset on a day that is not a Valuation Date, the value of that asset as of the end of the previous Valuation Date will be used.
Valuation Period – The period of time from one determination of Unit Values to the next following determination of Unit Values. We will determine Unit Value for each Valuation Date as of the close of the NYSE (generally 4:00 p.m. EST/EDT) on that Valuation Date.
A-3
Appendix B
Information About How a Pre-2009 Policy and Optional Term Insurance Rider (Issued Prior to January 1, 2009) Differs from the Policy and Optional Rider that We Issued until April 30, 2011
Prior to January 1, 2009, we issued and earlier version of this Policy (the “Pre-2009 Policy”). The Pre-2009 Policy is no longer offered for sale. However, many Pre-2009 Policies remain outstanding and most of the information in the prospectus is applicable. However, this Appendix B explains the differences between the Pre-2009 Policy from the description in the rest of the prospectus, which describes Policies we issued until April 30, 2011. If you own a Pre-2009 (issued prior to January 1, 2009), you should read this Appendix B for information as to your Pre-2009 Policy differs from the Policy described in the rest of the prospectus.
1.
 Different Cost of Insurance Charge Amounts
Certain information as to how we calculate the cost of insurance changes for the Policy we issued until April 30, 2011 is set forth under “Monthly Risk Rates” in this prospectus. That discussion applies to the Pre-2009 policy with one exception. References to the 2001 Commissioner’s Standard Ordinary, Age Nearest Birthday, Male/Female, Smoker/Non-Smoker Ultimate Mortality Table do not apply to the Pre-2009 Policy. Instead, these statements would refer to the 1980 Commissioner’s Standard Ordinary, Age Nearest Birthday, Male/Female, Smoker/Non-Smoker Ultimate Mortality Table.
The cost of insurance charges under the Pre-2009 Policy differ from those charged under the Policy issued on or after January 1, 2009 as provided in the tables below. Specifically, under the Pre-2009 Policy the minimum cost of insurance charge is $.08 per $1000 and under a Policy issued on or after January 1, 2009, the minimum cost of insurance charge is $.02 per $1000.
2.
 Fee Tables
The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the Pre-2009 Policy. The first table describes the fees and expenses that you will pay at the time that you buy the Pre-2009 Policy, surrender the Pre-2009 Policy, or Transfer cash value between investment options.
Transaction Fees 
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+
B-1
 
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
For the Pre-2009 Policy, if the Insured reached Attained Age 100 and the Policy is in force, the Account Value, less Policy Debt, will be applied as a single Premium to purchase “paid-up” insurance. This is different from the age disclosed in this prospectus.
4.
 Term Life Insurance Rider
For the Pre-2009 Policy, the rider is renewable annually until the Insured’s Attained Age 100. This is different from the age disclosed in the “Term Life Insurance Rider” section of this prospectus for the Policy that we issued until April 30, 2011. In addition, the cost of insurance charges under the Pre-2009 Policy Term Life Insurance Rider differ from those charged under the Term Life Insurance Rider issued on or after January 1, 2009 as provided in the table above. Specifically, under the Pre-2009 Policy Term Life Insurance Rider, the minimum cost of insurance charge is $.08 per $1000 and under a Term Life Insurance Rider issued on or after January 1, 2009, the minimum cost of insurance charge is $.02 per $1000.
5.
 Fixed Account
For the Pre-2009 Policy, the Fixed Account is not an available investment option.
6.
 Definition of Account Value
Because the Fixed Account is not an option for Pre-2009 Policies, the term of Account Value is defined as “the sum of the value of your interests in the Divisions and the Loan Account. This amount reflects: (1) the Premiums you pay; (2) the investment performance of the Divisions you select; (3) any Policy loans or partial withdrawals; (4) your Loan Account balance; and (5) the charges we deduct under
the Policy.”
B-2
The SAI is a document that includes additional information about the Series Account, including the financial statements of both Great-West and the Series Account. The SAI is incorporated by reference as a matter of law into the prospectus, which means that it is legally part of the prospectus. The SAI is available upon request, without charge. To request the SAI or other information about the Policy, or to make any inquiries about the Policy, contact Great-West toll-free at 888-353-2654 or via email at www.greatwest.com/executivebenefits. Reports and other information about the Series Account are available on the SEC’s website at www.sec.gov.
Investment Company Act File No. 811-09201
B-3

COLI VUL-2 SERIES ACCOUNT
Flexible Premium Variable
Universal Life Insurance Policies
Issued by:
Great-West Life & Annuity Insurance Company
8515 E. Orchard Road
Greenwood Village, Colorado 80111
STATEMENT OF ADDITIONAL INFORMATION
This Statement of Additional Information is not a prospectus. It contains information in addition to the information in the prospectus for the Policy. The prospectus for the Policy, which we may amend from time to time, contains the basic information you should know before purchasing a Policy. This Statement of Additional Information should be read in conjunction with the prospectus, dated May 10, 2021, which is available without charge by contacting Great-West Life & Annuity Insurance Company at (888) 353-2654 or via e-mail at www.greatwest.com/executivebenefits.
May 10, 2021
i
TABLE OF CONTENTS 
 
Page
General Information and History of Great-West and the Series Account
State Regulation
Underwriters
Underwriting Procedures
Illustrations
Financial Statements
ii
General Information and History of Great-West and the Series Account
Great-West Life & Annuity Insurance Company (“Great-West,” the “Company,” “we” or “us”) is a stock life insurance company that was originally organized under the laws of the state of Kansas as the National Interment Association. Our name was changed to Ranger National Life Insurance Company in 1963 and to Insuramerica Corporation in 1980 prior to changing to our current name in February 1982. In September 1990, we redomesticated under the laws of Colorado.
We are authorized to do business in forty-nine states, the District of Columbia, Puerto Rico, U.S. Virgin Islands and Guam. We issue individual and group life insurance policies and annuity contracts and accident and health insurance policies.
Great-West is a wholly owned subsidiary of GWL&A Financial, Inc., a Delaware holding company. GWL&A Financial, Inc. is an indirect wholly-owned subsidiary of Great-West Lifeco Inc., a Canadian holding company. Great-West Lifeco Inc. is a subsidiary of Power Financial Corporation, a Canadian holding company with substantial interests in the financial services industry. Power Financial Corporation is a subsidiary of Power Corporation of Canada, a Canadian holding and management company. Through a group of private holding companies, The Desmarais Family Residuary Trust, which was created on October 8, 2013 under the Last Will and Testament of Paul G. Desmarais, has voting control of Power Corporation of Canada.
On June 3, 2019, Great-West entered into an indemnity reinsurance agreement (the “Agreement”) with Protective Life Insurance Company (“Protective”) to indemnify and reinsure the obligations of Great-West under substantially all of its non-participating individual life insurance and annuity business and group life and health business, including this Policy.
Under the Agreement, as of October 5, 2020, Protective will provide administration and customer service for this Policy in accordance with the terms and conditions of the Policy. Great-West will continue its present role as the issuer of your Policy, and will remain responsible for the administration and customer service of the Policy. All of your rights and benefits under your Policy and Great-West’s obligations under the Policy remain unchanged.
We established the COLI VUL-2 Series Account of Great-West Life & Annuity Insurance Company (the “Series Account”) in accordance with Colorado law on November 25, 1997. The Series Account is registered with the SEC as a unit investment trust under the Investment Company Act of 1940.
State Regulation
We are subject to the laws of Colorado governing life insurance companies and to regulation by Colorado’s Commissioner of Insurance, whose agents periodically conduct an examination of our financial condition and business operations. We are also subject to the insurance laws and regulations of all the jurisdictions in which we are authorized to do business.
We are required to file an annual statement with the insurance regulatory authority of those jurisdictions where we are authorized to do business relating to our business operations and financial condition as of December 31st of the preceding year.
Independent Registered Public Accounting Firm
Deloitte & Touche LLP, 1601 Wewatta Street, Suite 400, Denver, Colorado 80202, serves as the Series Account’s independent registered public accounting firm.
The financial statements and financial highlights of each of the investment divisions of the COLI VUL-2 Series Account of Great-West Life & Annuity Insurance Company included in this Statement of Additional Information have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report appearing in the Registration Statement. Such financial statements are included in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing.
Independent Auditors
The statutory-basis financial statements of Great-West Life & Annuity Insurance Company included in this Statement of Additional Information included in the Registration Statement have been audited by Deloitte & Touche LLP, independent auditors, as stated in their report appearing herein, and are included in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing.
Underwriters
Prior to October 5, 2020, the offering of the Policy was made on a continuous basis by GWFS Equities, Inc. (“GWFS Equities”), an indirect wholly owned subsidiary of Great-West, whose principal business address is 8515 East Orchard Road, Greenwood Village, Colorado 80111. GWFS Equities is registered with the SEC under the Securities Exchange Act of 1934 (“Exchange Act”) as a broker-dealer and is a member of the Financial Industry Regulatory Authority (“FINRA”).
1
Effective October 5, 2020, the offering of the Policy is made on a continuous basis by Investment Distributors, Inc. (“IDI”), a subsidiary of Protective Life Corporation (“PLC”), the parent of Protective. IDI is a Tennessee corporation and was established in 1993. IDI’s home office shares the same address as Protective Life at 2801 Highway 280 South, Birmingham, Alabama 35223. IDI is registered with the SEC under the Exchange Act as a broker-dealer and is a member firm of FINRA.
GWFS Equities and IDI have received no underwriting commissions in connection with this offeringin each of the last three fiscal years.
Licensed insurance agents will sell the Policy in those states where the Policy may be lawfully sold. Such agents will be registered representatives of broker-dealers registered under the Exchange Act, which are members of FINRA and which have entered into selling agreements with GWFS Equities and IDI. GWFS Equities also acts as the general distributor of certain annuity contracts issued by us. The maximum sales commission payable to our agents, independent registered insurance agents and other registered broker-dealers is 25% of Premium. In addition, asset-based trail commissions may be paid. A sales representative may be required to return all or a portion of the commissions paid if: (i) a Policy terminates prior to the second Policy Anniversary; or (ii) a Policy is surrendered for the Surrender Benefit within the first six Policy Years and applicable state insurance law permits a return of expense charge.
Underwriting Procedures
We will issue on a fully underwritten basis applicants up to 300% of our standard current mortality assumptions. We will issue on a simplified basis based on case characteristics, such as required Policy size, average age of group and the industry of the group using our standard mortality assumptions. We will issue on a guaranteed basis for larger groups based on case characteristics such as the size of the group, Policy size, average age of group, industry, and group location.
Illustrations
Upon Request, we will provide you an illustration of Cash Surrender Value, Account Value and death benefits. The first illustration you Request during a Policy Year will be provided to you free of charge. Thereafter, each additional illustration Requested during the same Policy Year will be provided to you for a nominal fee not to exceed $50.
Financial Statements
The financial statements of Great-West as contained herein should be considered only as bearing upon Great-West’s ability to meet its obligations under the Policies, and they should not be considered as bearing on the investment performance of the Series Account. The variable interest of Owners under the Policies are affected solely by the investment results of the Series Account. The financial statements of the Series Account are also included herein.
2

 

AUDITED FINANCIAL REPORT

 

 

LOGO

 

Great-West Life & Annuity

 

Audited Annual Statutory Report

 

Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus as of December 31, 2020 and 2019 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, 2020 and Report of Independent Registered Public Accounting Firm

Index to Financial Statements, Notes, and Schedules

 

     Page
  Number  

Independent Auditors’ Report

   3

Statutory Financial Statements at December 31, 2020, and 2019 and for the Years Ended December 31, 2020, 2019, and 2018

   

Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus

    5

Statutory Statements of Operations

    7

Statutory Statements of Changes in Capital and Surplus

   8

Statutory Statements of Cash Flows

    9

Notes to the Statutory Financial Statements

    11

Note 1 - Organization and Significant Accounting Policies

   11

Note 2 - Accounting Changes

    24

Note 3 - Related Party Transactions

    24

Note 4 - Summary of Invested Assets

    27

Note 5 - Fair Value Measurements

    37

Note 6 - Non-Admitted Assets

    41

Note 7 - Premiums Deferred and Uncollected

    42

Note 8 - Business Combination and Goodwill

    42

Note 9 - Reinsurance

    42

Note 10 - Aggregate Reserves

    47

Note 11 - Liability for Unpaid Claims and Claim Adjustment Expenses

    50

Note 12 - Commercial Paper

    50

Note 13 - Separate Accounts

    50

Note 14 - Capital and Surplus, Dividend Restrictions, and Other Matters

    54

Note 15 - Federal Income Taxes

    56

Note 16 - Employee Benefit Plans

    61

Note 17 - Share-based Compensation

    65

Note 18 - Participating Insurance

    68

Note 19 - Concentrations

    68

Note 20 - Commitments and Contingencies

    68

Note 21 - Subsequent Events

    70

Supplemental Schedules

    71

 

2

INDEPENDENT AUDITORS’ REPORT

To the Board of Directors and Stockholder of

Great-West Life & Annuity Insurance Company

Greenwood Village, Colorado

We have audited the accompanying statutory-basis financial statements of Great-West Life & Annuity Insurance Company (the “Company”) (a wholly-owned subsidiary of GWL&A Financial Inc.), which comprise the statutory statements of admitted assets, liabilities, and capital and surplus as of December 31, 2020 and 2019, and the related statutory statements of operations, changes in capital and surplus, and cash flows for each of the three years in the period ended December 31, 2020, and the related notes to the statutory-basis financial statements.

Management’s Responsibility for the Statutory-Basis Financial Statements

Management is responsible for the preparation and fair presentation of these statutory-basis financial statements in accordance with the accounting practices prescribed or permitted by the Colorado Division of Insurance. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these statutory-basis financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the statutory-basis financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the statutory-basis financial statements. The procedures selected depend on the auditor’s judgment including the assessment of the risks of material misstatement of the statutory-basis financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the statutory-basis financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the statutory-basis financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Basis for Adverse Opinion on Accounting Principles Generally Accepted in the United States of America

As described in Note 1 to the statutory-basis financial statements, the statutory-basis 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-basis financial statements of the variances between the statutory-basis of accounting described in Note 1 to the statutory-basis financial statements and accounting

 

3

principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

Adverse Opinion on Accounting Principles Generally Accepted in the United States of America

In our opinion, because of the significance of the matter described in the Basis for Adverse Opinion on Accounting Principles Generally Accepted in the United States of America paragraph, the statutory-basis financial statements referred to above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of Great-West Life & Annuity Insurance Company as of December 31, 2020 and 2019, or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2020.

Opinion on Statutory Basis of Accounting

In our opinion, the statutory-basis financial statements referred to above present fairly, in all material respects, the admitted assets, liabilities, and capital and surplus of Great-West Life & Annuity Insurance Company as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the three years ended December 31, 2020, in accordance with accounting practices prescribed or permitted by the Colorado Division of Insurance, as described in Note 1 to the statutory-basis financial statements.

Emphasis of Matter

The Company engages in various related-party transaction with affiliates under common control as discussed in Note 1 to the statutory financial statements. The accompanying statutory financial statements are not necessarily indicative of the conditions that would have existed or the results of operations that would prevail if the Company had been operated as an unaffiliated company. Our opinion is not modified with respect to this matter.

Report on Supplemental Schedules

Our 2020 audit was conducted for the purpose of forming an opinion on the 2020 statutory-basis financial statements as a whole. The supplemental schedule of investment risk interrogatories, the supplemental summary investment schedule, the supplemental schedule of selected financial data, and the supplemental schedule regarding reinsurance contracts with risk-limiting features as of and for the year ended December 31, 2020 are presented for purposes of additional analysis and are not a required part of the 2020 statutory-basis financial statements. These schedules are the responsibility of the Company’s management and were derived from and relate directly to the underlying accounting and other records used to prepare the statutory-basis financial statements. Such schedules have been subjected to the auditing procedures applied in our audit of the 2020 statutory-basis financial statements and certain additional procedures, including comparing and reconciling such schedules directly to the underlying accounting and other records used to prepare the statutory-basis financial statements or to the statutory-basis financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, such schedules are fairly stated in all material respects in relation to the 2020 statutory-basis financial statements as a whole.

/s/ DELOITTE & TOUCHE LLP

Denver, Colorado

April 1, 2021

We have served as the Company’s auditor since 1981

 

4

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus

December 31, 2020 and 2019

(In Thousands, Except Share Amounts)

 

     December 31,
               2020                        2019          

Admitted assets:

      

Cash and invested assets:

      

Bonds

    $ 25,712,083    $ 13,803,525

Preferred stock

      119,687      —  

Common stock

      223,883      144,888

Mortgage loans (net of allowances of $745 and $745)

      4,123,666      2,692,690

Real estate occupied by the company

      41,951      43,283

Real estate held for the production of income

      1,825      1,365

Contract loans

      3,874,206      3,995,291

Cash, cash equivalents and short-term investments

      3,470,914      818,328

Securities lending collateral assets

      206,811      303,282

Other invested assets

      750,477      402,891
  

 

 

 

   

 

 

 

Total cash and invested assets

      38,525,503      22,205,543
  

 

 

 

   

 

 

 

Investment income due and accrued

      267,276      192,278

Premiums deferred and uncollected

      16,256      15,199

Reinsurance recoverable

      80,249      37,806

Funds held or deposited with reinsured companies

      6,760,741      —  

Current federal income taxes recoverable

      70,655      44,457

Deferred income taxes

      125,959      97,203

Due from parent, subsidiaries and affiliates

      94,584      63,595

Other assets

      669,038      490,832

Assets from separate accounts

      28,455,204      25,634,438
  

 

 

 

   

 

 

 

Total admitted assets

    $ 75,065,465    $ 48,781,351
  

 

 

 

   

 

 

 

 

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, 2020 and 2019

(In Thousands, Except Share Amounts)

 

     December 31,
               2020                       2019          

Liabilities, capital and surplus:

     

Liabilities:

     

Aggregate reserves for life policies and contracts

    $ 36,087,118   $ 19,638,498

Liability for deposit-type contracts

      5,215,962     60,296

Life and accident and health policy and contract claims

      65,785     44,258

Provision for policyholders’ dividends

      18,324     24,111

Liability for premiums received in advance

      2     2

Unearned investment income

      121     59

Asset valuation reserve

      202,003     194,032

Interest maintenance reserve

      678,773     (2,006 ) 

Due to parent, subsidiaries and affiliates

      16,578     77,613

Commercial paper

      98,983     99,900

Payable under securities lending agreements

      206,811     303,282

Other liabilities

      1,858,504     1,265,123

Liabilities from separate accounts

      28,455,194     25,634,428
  

 

 

 

  

 

 

 

Total liabilities

      72,904,158     47,339,596
  

 

 

 

  

 

 

 

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; 16,859,018 shares issued and outstanding

      16,859     7,320

Surplus notes

      921,980     395,811

Gross paid in and contributed surplus

      3,782,019     714,300

Unassigned funds

      (2,559,551 )      324,324
  

 

 

 

  

 

 

 

Total capital and surplus

      2,161,307     1,441,755
  

 

 

 

  

 

 

 

Total liabilities, capital and surplus

    $ 75,065,465   $ 48,781,351
  

 

 

 

  

 

 

 

 

See notes to statutory financial statements.    Concluded

 

6

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Statutory Statements of Operations

Years Ended December 31, 2020, 2019 and 2018

(In Thousands)

 

     Year Ended December 31,
               2020                       2019                       2018          
  

 

 

 

  

 

 

 

Income:

       

Premium income and annuity consideration

    $ 12,831,872   $ (5,366,421 )    $ 7,592,609

Net investment income

      948,344     1,099,451     1,307,387

Amortization of interest maintenance reserve

      39,141     8,280     24,863

Commission and expense allowances on reinsurance ceded

      172,698     265,105     5,211

Fee income from separate accounts

      62,302     101,629     160,573

Reserve adjustment on reinsurance ceded

      7,157,573     (592,883 )      (1,975,763 ) 

Miscellaneous income

      41,467     267,637     250,272
  

 

 

 

  

 

 

 

Total income

      21,253,397     (4,217,202 )      7,365,152
  

 

 

 

  

 

 

 

Expenses:

       

Death benefits

      92,253     204,509     380,057

Annuity benefits

      95,252     155,286     228,530

Disability benefits and benefits under accident and health policies

      76     17,762     41,719

Surrender benefits

      3,842,313     4,403,521     5,895,938

Increase (decrease) in aggregate reserves for life and accident and health policies and contracts

      16,448,620     (8,139,385 )      917,510

Other benefits

      8,722     6,208     10,528
  

 

 

 

  

 

 

 

Total benefits

      20,487,236     (3,352,099 )      7,474,282
  

 

 

 

  

 

 

 

Commissions

      2,222,528     162,942     196,489

Other insurance expenses

      371,028     496,310     488,250

Net transfers from separate accounts

      (809,028 )      (1,328,143 )      (1,112,465 ) 

Interest maintenance reserve reinsurance activity

      661,450     (512,033 )      —  
  

 

 

 

  

 

 

 

Total benefit and expenses

      22,933,214     (4,533,023 )      7,046,556
  

 

 

 

  

 

 

 

Net (loss) gain from operations before dividends to policyholders, federal income taxes and realized capital gains (losses)

      (1,679,817 )      315,821     318,596

Dividends to policyholders

      18,497     23,461     31,276
  

 

 

 

  

 

 

 

Net (loss) gain from operations after dividends to policyholders and before federal income taxes and net realized capital gains (losses)

      (1,698,314 )      292,360     287,320

Federal income tax (benefit) expense

      (20,260 )      (98,467 )      (17,604 ) 
  

 

 

 

  

 

 

 

Net (loss) gain from operations before net realized capital gains (losses)

      (1,678,054 )      390,827     304,924

Net realized capital (losses) gains less capital gains tax and transfers to interest maintenance reserve

      (16,958 )      (8,022 )      10,576
  

 

 

 

  

 

 

 

Net (loss) income

    $ (1,695,012 )    $ 382,805   $ 315,500
  

 

 

 

  

 

 

 

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, 2020, 2019 and 2018

(In Thousands)

 

     Year Ended December 31,
               2020                       2019                       2018        

 

Capital and surplus, beginning of year

    $ 1,441,755   $ 1,326,919   $ 1,129,509
  

 

 

 

  

 

 

 

  

 

 

 

Net (loss) income

      (1,695,012 )      382,805     315,500

Dividends to stockholder

      (357,752 )      (639,801 )      (152,295 ) 

Change in net unrealized capital (losses) gains, net of income taxes

      (288,936 )      57,398     (11,491 ) 

Change in minimum pension liability, net of income taxes

      (1,589 )      (4,209 )      3,824

Change in asset valuation reserve

      (7,971 )      10,360     (846 ) 

Change in non-admitted assets

      (708,501 )      92,424     28,921

Change in net deferred income taxes

      256,714     (129,400 )      (40,732 ) 

Capital paid-in

      9,539     —       —  

Surplus paid-in

      3,067,719     4,029     4,093

Change in surplus as a result of reinsurance

      (83,521 )      537,566     —  

Change in capital and surplus as a result of separate accounts

      —       (428 )      (208 ) 

Change in unrealized foreign exchange capital gains (losses)

      2,693     (20 )      (1,125 ) 

Change in surplus notes

      526,169     (195,888 )      51,769
  

 

 

 

  

 

 

 

  

 

 

 

Net change in capital and surplus for the year

      719,552     114,836     197,410
  

 

 

 

  

 

 

 

  

 

 

 

Capital and surplus, end of year

    $ 2,161,307   $ 1,441,755   $ 1,326,919
  

 

 

 

  

 

 

 

  

 

 

 

See notes to statutory financial statements.

 

8

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Statutory Statements of Cash Flows

Years Ended December 31, 2020, 2019 and 2018

(In Thousands)

 

     Year Ended December 31,
     2020    2019   2018
  

 

 

 

   

 

 

 

Operating activities:

        

Premium income, net of reinsurance

    $ 6,588,902    $ 3,654,066   $ 5,352,630

Investment income received, net of investment expenses paid

      809,931      962,732     1,136,338

Other miscellaneous income received

      59,348      577,059     160,008

Benefit and loss related payments, net of reinsurance

      (3,803,044 )       (4,542,350 )      (6,417,233 ) 

Net transfers from separate accounts

      816,837      1,375,094     1,097,423

Commissions, other expenses and taxes paid

      (2,758,668 )       (526,161 )      (644,838 ) 

Dividends paid to policyholders

      (24,228 )       (30,537 )      (38,959 ) 

Federal income taxes (paid) received, net

      (18,530 )       5,267     (38,241 ) 
  

 

 

 

   

 

 

 

Net cash provided by operating activities

      1,670,548      1,475,170     607,128
  

 

 

 

   

 

 

 

Investing activities:

        

Proceeds from investments sold, matured or repaid:

        

Bonds

      2,794,468      2,430,562     3,351,579

Stocks

      53      19,187     3,704

Mortgage loans

      295,116      343,441     357,545

Other invested assets

      38,065      19,597     25,233

Net gains on cash, cash equivalents and short-term investments

      83      5     —  

Miscellaneous proceeds

      544,448      24,100     22,212

Cost of investments acquired:

        

Bonds

      (6,396,829 )       (2,770,357 )      (3,398,701 ) 

Stocks

      (221,630 )       (3,585 )      (38,742 ) 

Mortgage loans

      (89,330 )       (114,542 )      (697,245 ) 

Real estate

      (2,724 )       (9,052 )      (4,319 ) 

Other invested assets

      (905,616 )       (46,617 )      (36,870 ) 

Miscellaneous applications

      (274,834 )       —       (39,654 ) 

Net change in contract loans and premium notes

      127,912      (3,120 )      (1,355 ) 
  

 

 

 

   

 

 

 

Net cash used in investing activities

      (4,090,818 )       (110,381 )      (456,613 ) 
  

 

 

 

   

 

 

 

Financing and miscellaneous activities:

        

Surplus notes

      527,500      (195,000 )      51,410

Capital and paid in surplus

      3,076,665      3,130     3,325

Deposit-type contracts, net

      1,963,991      (5,399 )      (18,908 ) 

Dividends to stockholder

      (357,752 )       (639,801 )      (152,295 ) 

Funds (repaid) borrowed, net

      (916 )       1,041     (1,027 ) 

Other

      (136,621 )       60,135     (45,670 ) 
  

 

 

 

   

 

 

 

Net cash provided by (used in) financing and miscellaneous activities

      5,072,867      (775,894 )      (163,165 ) 
  

 

 

 

   

 

 

 

Net increase (decrease) in cash, cash equivalents and short-term investments and restricted cash

      2,652,597      588,895     (12,650 ) 

Cash, cash equivalents and short-term investments and restricted cash:

        

Beginning of year

      818,329      229,434     242,084
  

 

 

 

   

 

 

 

End of year

    $ 3,470,926    $ 818,329   $ 229,434
  

 

 

 

   

 

 

 

The cash, cash equivalents and short-term investments and restricted cash balance includes $12 and $1 of restricted cash as of December 31, 2020 and 2019, respectively, which is non-admitted and not included in the Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus.

 

  

 

9

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Statutory Statements of Cash Flows

Years Ended December 31, 2020, 2019 and 2018

(In Thousands)

 

     Year Ended December 31,
               2020                        2019                        2018          
  

 

 

 

   

 

 

 

Non-cash investing and financing transactions during the year:

         

Share-based compensation expense

    $ 593    $ 899    $ 768

Fair value of assets acquired in settlement of bonds

      —        —        28,815

In 2020, non-cash transfers of $9,848 million of assets and liabilities occurred as a part of the MassMutual transaction. In 2019, non-cash transfers of $8,938 million of assets and liabilities occurred as a part of the Protective transaction. Refer to Note 9 for further information on the MassMutual and Protective transactions.

 

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 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.

Effective December 31, 2020, the Company completed the acquisition, via indemnity reinsurance (“the MassMutual transaction”), of the retirement services business of Massachusetts Mutual Life Insurance Company (“MassMutual”). The Company has now assumed the economics and risks associated with the reinsurance business. Per the transaction agreement, the Company acquired statutory assets equal to liabilities. The business assumed is primarily group annuities. See Note 9 for further discussion of the MassMutual transaction.

Effective June 1, 2019, the Company completed the sale, via indemnity reinsurance (the “Protective transaction”), of substantially all of its individual life insurance and annuity business to Protective Life Insurance Company (“Protective”) who now assumes the economics and risks associated with the reinsured business. Per the transaction agreement, the Company transferred statutory assets equal to liabilities. The business transferred included bank-owned and corporate-owned life insurance, single premium life insurance, individual annuities as well as closed block life insurance and annuities. The Company retained a block of life insurance, predominantly participating policies which are now administered by Protective, as well as a closed reinsurance acquired block. Post-transaction, the Company focuses on the defined contribution retirement and asset management markets. See Note 9 for further discussion of the Protective transaction.

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 Company’s statutory financial statements as compared to NAIC SAP or the Division’s 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:

 

11

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

•  

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.

 

•  

Redeemable preferred stocks are carried at statutory carrying value in accordance with the NAIC designation of the security. Carrying value is amortized cost, unless the redeemable preferred stock is designated a four to six, in which case it is reported at the lower of amortized cost or fair value. Under GAAP, redeemable preferred stocks 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 remaining maturities, at the time of acquisition, 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 generally 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.

 

•  

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

 

12

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

 

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. If the assets to be repurchased are the same, or substantially the same, as the assets transferred, the transactions are accounted for as secured borrowings. Transactions that do not meet the secured borrowing requirements are accounted for as bond purchases and sales. 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 Company’s 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, 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.

 

•  

For statutory accounting, business combinations must either create a parent-subsidiary relationship (statutory purchase) or there must be an exchange of equity with one surviving entity (statutory merger). Under GAAP, an integrated set of activities and assets that are capable of being conducted and managed for the purpose of providing economic benefits to its investors can meet the definition of a business. As such, under GAAP, certain reinsurance agreements could be accounted for as a business acquisition.

 

•  

For statutory purchases, the excess of the cost of acquiring an entity over the Company’s 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. For statutory mergers, no acquisition is recognized because it

 

13

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

 

is accomplished without exchanging resources. As such, the recorded assets, liabilities, and surplus of the acquired company (adjusted to conform to statutory accounting principles) will be carried forward into the combined company. Under GAAP in a business combination, 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.

 

•  

Surplus notes are reflected as a component of capital and surplus, whereas under GAAP they are reflected as a liability.

 

•  

The policyholder’s 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.

 

•  

For statutory accounting purposes, policy and contract liabilities ceded to reinsurers are reported as reductions of the related reserves. Losses generated in certain reinsurance transaction are recognized immediately in income, with gains reported as a separate component of surplus and amortized over the remaining life of the business. As prescribed by the Department, ceded reserves are limited to the amount of direct reserves. Under GAAP, ceded future policy benefits and contract owner liabilities are reported as reinsurance recoverables. Only those reinsurance recoverable balances deemed probable of recovery are reflected as assets on the balance sheet and are stated net of allowance for uncollectible reinsurance, which are charged to earnings. Cost of reinsurance (i.e. the net cash flows which include reinsurance premiums, ceding commissions, etc.) are deferred and amortized over the remaining life of the business.

The preparation of financial statements in conformity with statutory accounting principles requires the Company’s 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 and

 

14

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

derivatives in the absence of quoted market values, impairment of investments and derivatives, valuation of policy benefit liabilities and the valuation of deferred tax assets. Actual results could differ from those estimates.

Impact of COVID-19 on significant judgments, estimates and assumptions

Beginning in January 2020, the outbreak of a virus known as COVID-19 and ensuing global pandemic have resulted in travel and border restrictions, quarantines, supply chain disruptions, lower consumer demand and significant market uncertainty. In the first quarter of 2020, global financial markets experienced material and rapid declines and significant volatility; however, following March 31, 2020, the markets have experienced recoveries. Governments and central banks have reacted with significant monetary and fiscal interventions designed to stabilize economic conditions. The duration and impact of the COVID-19 pandemic continues to be unknown at this time, as is the efficacy of the government and central bank interventions. The results of the Company reflect management’s judgments regarding the impact of prevailing market conditions.

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, except make-whole call provisions, are amortized to the call or maturity value/date which produces the lowest asset value. Make-whole call provisions, which allow the bond to be called at any time, are not considered in determining the timeframe for amortizing the premium or discount unless the Company has information indicating the issuer is expected to invoke the make-whole call provision.

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.

 

15

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

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. Management’s 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 Company’s 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. Management’s 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 borrower’s 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.

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.

Additionally, the Company considers the temporary relief granted by the Statutory Accounting Principles Working Group (“SAPWG”) in response to the Coronavirus, Aid, Relief, and Economic Security Act (the “CARES Act”). The relief gives temporary statutory exception for impairment assessment on bank loans, mortgage loans and investment products with underlying mortgage loans due to situations as a result of COVID-19 including the forbearance or modification of mortgage loan payments. SAPWG also granted practical expedients in determining whether a modification is a concession (insignificant) or if it is a TDR. The provisions of these guidance are applicable through the earlier of January 1, 2022, or 60 days after the date on which the national emergency concerning COVID–19 terminates.

 

•  

Real estate properties held for the production of income are valued at depreciated cost less encumbrances. 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,

 

16

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

 

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. 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 entity’s operations.

 

•  

Redeemable preferred stocks are carried at statutory carrying value in accordance with the NAIC designation of the security. Carrying value is amortized cost, unless the redeemable preferred stock is designated a four to six, in which case it is reported at the lower of amortized cost or fair value.

 

•  

Common stocks, other than stocks of subsidiaries and stocks of the Federal Home Loan Bank (“FHLB”), are recorded at fair value based on the most recent closing price of the common stock as quoted on its exchange. Common stocks of the FHLB are reported at cost. 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.

Investments in subsidiaries are carried on the equity basis with unrealized changes in value recorded in surplus and dividends received recorded in investment income.

 

•  

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 funds 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 Company’s 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 repledged 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. If the assets to be repurchased are the same, or substantially the same, as the assets transferred, the transactions are accounted for as secured borrowings. Transactions that do not meet the secured borrowing requirements are accounted for as bond purchases and sales. Proceeds of the sale are reinvested in other securities and may 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 Company’s right to

 

17

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

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 money market funds or 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. Collateral that cannot be sold or repledged is excluded from the Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus.

 

•  

Surplus notes, which are recorded in other invested assets, are carried at statutory carrying value in accordance with the NAIC designation of the security. Carrying value is amortized cost, unless the surplus note is designated a NAIC three to six, in which case it is reported at the lower of amortized cost or fair value.

 

•  

The Company’s 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 management’s 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.

 

18

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

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.

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 Company’s 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 Company’s assets and liabilities have been categorized based upon the following fair value hierarchy:

 

  •  

Level 1 inputs which are utilized for general and 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 general 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

 

19

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

 

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 broker’s 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.

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.

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 Company’s 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 and liabilities 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 and liabilities 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.

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 Company’s 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 Company’s 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

 

20

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

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 Company’s guaranteed lifetime withdrawal benefit (“GLWB”) liability, (b) hedge the economic effect of a large increase in interest rates on the Company’s 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.

The Company controls the credit risk of its derivative contracts through credit approvals, limits, monitoring procedures and in many cases, requiring collateral. The Company’s 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. Securities pledged to the Company generally consist of U.S. government or U.S. government agency securities and are not recorded on the Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus.

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.

Funds held or deposited with reinsured companies

Funds held by reinsurers are receivables from ceding entities. Interest earned on the funds withheld receivable are included as a component of aggregate write-ins for miscellaneous income.

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 Company’s 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, 2020, 2019 and 2018.

 

21

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

Reinsurance

Reinsurance premiums, commissions, expense reimbursements, and reserves related to reinsured business are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Reserves are based on the terms of the reinsurance contracts and are consistent with the risks assumed. Life contract premiums and benefits ceded to other companies have been reported as a reduction of the premium revenue and benefit expense. Life contract premiums and benefits assumed from other companies have been reported as an increase in premium revenue and benefit expense. Invested assets and reserved ceded or assumed on deposit type contracts are accounted for using deposit accounting. The Company establishes a receivable for amounts due from reinsurers for claims paid and other amounts recoverable under the terms of the reinsurance contract.

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, 2020, the investments underlying variable life insurance policies utilize various fund structures, with underlying investment characteristics of 23% equity, 42% fixed income, 32% cash and short terms, and 3% other. At December 31, 2019, the investments underlying variable life insurance policies utilize various fund structures, with underlying investment characteristics of 9% equity, 34% fixed income, and 57% cash and short terms.

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.

Policy reserves for life insurance are valued in accordance with the provision of applicable statutory regulations. Life insurance reserves are determined principally using the Commissioner’s 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 Company’s 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.

 

22

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

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 Statement 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 Company’s 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.

 

23

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

2. Accounting Changes

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 adopted this standard on January 1, 2020, which did not have a material effect on the Company’s financial statements.

In 2020, SAPWG adopted a revised SSAP 32R, Preferred Stock, and a corresponding Issue Paper No. 164, Preferred Stock. The revised SSAP improves the definition of preferred stock, revises the measurement guidance based on the type and terms of preferred stock held, and clarifies the impairment and dividend recognition guidance. The standard was adopted with an effective date of January 1, 2021 with early adoption permitted. The Company early adopted this revision and the adoption of this standard did not have a material effect on the Company’s financial statements.

3. Related Party Transactions

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.

On January 1, 2020, the Company and its subsidiaries implemented an organizational change to simplify its corporate structure and affiliated transactions. The transaction included the following changes impacting the Company:

 

  •  

Substantially all employees of GWL&A and its other subsidiaries were transferred to the Empower.

 

  •  

Empower assumed all recordkeeping related revenues either by direct assignment of contracts or through a transition services agreement between Empower, GWL&A, and GWL&A’s subsidiaries.

 

  •  

Substantially all vendor contracts were assigned to Empower.

 

  •  

Empower entered into an administrative services agreement whereby it provides corporate and other shared services to GWL&A and its affiliates and is reimbursed for expenses incurred.

 

  •  

Empower acquired assets and assumed liabilities from GWL&A and GWL&A’s subsidiaries including furniture, equipment, and software, deferred contract costs, certain other current assets including prepaid assets, and certain other liabilities including employee-related benefit and payroll liabilities and GWL&A’s post-retirement medical plan. The assets acquired and liabilities assumed by Empower were settled in cash based on their value under International Financial Reporting Standards (“IFRS”). Any differences between the value of the assets and liabilities on an IFRS basis and a Statutory basis were settled by dividends or capital contributions between entities.

 

24

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

           Year Ended December 31,     Financial  
Description   Related party          2020                 2019                 2018           statement
line		  
           
Provides corporate support service  

Insurance affiliates:

Great-West Life & Annuity Insurance Company of New York (“GWL&A NY”)(1),The Canada Life Assurance Company (“CLAC”)(2) and Great-West Life Assurance Company (“Great-West Life”)(2)

    $ (14,626 )    $ (23,958 )    $ (15,522 )     


 Other
insurance
benefits and
expenses		  
 
 
 
   

Non-insurance affiliates:

Empower(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) and MAM Holding Inc. (2)

      —       (151,179 )      (142,424 )     
    Total       (14,626 )      (175,137 )      (157,946 )         
           
Receives corporate support services  

Non-insurance affiliate:

Empower(1)

      332,652     —       —      


 Other
insurance
benefits and
expenses		  
 
 
 
Provides recordkeeping fees under temporary service agreement for recordkeeping agreements not yet transferred to Empower  

Non-insurance affiliate:

Empower(1)

      (194,795 )      —       —       Fee income  
Receives commissions under temporary service agreement for recordkeeping agreements not yet transferred to Empower  

Non-insurance and insurance affiliates:

Empower(1), GWL&A NY (1)

      (77,139 )      —       —       Commissions  
           
Provides marketing, distribution and administrative services to certain underlying funds and/or mutual funds  

Non-insurance affiliate:

GWFS(1)

      7,101     172,702     198,976    
 Other
income		  
 
           
Provides record-keeping services  

Non-insurance affiliates:

GWTC(1)

      —       45,101     38,200    
 Other
income		  
 
           
   

Non-insurance related party:

Great-West Funds(4)

      20,506     61,194     65,281    
           
    Total       20,506     106,295     103,481        
Receives record-keeping services  

Insurance affiliate:

GWL&A NY(1)

      (1,460 )      (2,328 )      (2,551 )     
 Other
income		  
 
   

Non-insurance affiliates:

Empower(1)and GWTC(1)

      (15,339 )      (388,302 )      (342,803 )         
    Total       (16,799 )      (390,630 )      (345,354 )         
           
Receives custodial services  

Non-insurance affiliate:

GWTC(1)

      —       (13,526 )      (12,410 )     
 Other
income		  
 
           
Receives reimbursement from tax sharing indemnification related to state and local tax liabilities  

Non-insurance affiliate:

Putnam Investments LLC (“Putnam”) (3)

      16,282     9,733     9,140    
 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.

(4) An open-end management investment company, a related party of GWL&A

 

25

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

The Company’s 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 Company’s 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, 2020, 2019 and 2018, these purchases totaled $330,974, $224,708 and $169,857 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 $249,802 and $288,076 at December 31, 2020 and 2019, respectively, which is also included in the assets and liabilities of the general account at those dates.

During June of 2018, the Company invested $35,000 to fund the initial creation of five mutual funds offered by its subsidiary, GWCM. When the funds met certain targets for customer investment, the Company began redeeming its interests. The remaining investments were $17,679 and $15,546 at December 31, 2020 and 2019, respectively.

The following table summarizes amounts due from parent and affiliates:

 

                 December 31,
Related party    Indebtedness      Due date    2020    2019

Empower(1)

    On account      On demand    $ 46,104    $ —

GWFS(1)

    On account      On demand      34,743      34,625

CLAC(2)

    On account      On demand      —        11,630

GWTC(1)

    On account      On demand      290      7,807

AAG(1)

    On account      On demand      —        5,141

GWCM(1)

    On account      On demand      —        1,610

GWL&A NY(1)

    On account      On demand      214      1,470

Great-West RPS(1)

    On account      On demand      3      700

Great-West South Carolina (“GWSC”)(1)

    On account      On demand      7,351      509

Putnam(3)

    On account      On demand      4,951      103

Other related party receivables

    On account      On demand      928      —  
          

 

 

 

   

 

 

 

Total

            $          94,584    $          63,595
          

 

 

 

   

 

 

 

(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    2020    2019

Empower(1)

    On account      On demand    $ —    $ 76,024

CLAC(2)

    On account      On demand      683      917

Personal Capital Corporation(1)

    On account      On demand      15,473      —  

Other related party payables

    On account      On demand      422      672
          

 

 

 

   

 

 

 

Total

            $ 16,578    $ 77,613
          

 

 

 

   

 

 

 

(1) A wholly-owned subsidiary of GWL&A

(2) An indirect wholly-owned subsidiary of Lifeco

Included in current federal income taxes recoverable at December 31, 2020 and 2019 is $73,029 and $45,900, respectively, of income tax receivable from Lifeco U.S. related to the consolidated income tax return filed by Lifeco U.S.

 

26

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

The Company received/(paid) cash payments of $12,506, $2,727 and ($42,577) from its subsidiary, GWSC, in 2020, 2019 and 2018 respectively, under the terms of its tax sharing agreement. The amount paid in 2018 is for the utilization of GWSC’s operating loss carryforward amounts which were fully utilized as of that year. Additionally, during the years ended December 31, 2020, 2019 and 2018, the Company received interest income of $1,661, $2,085 and $2,527 respectively, from GWSC relating to the tax sharing agreement.

During the year ended December 31, 2020, the Company received dividends and return of capital of $142,500 and $7,000, respectively, from its subsidiaries, the largest being $61,000 from AAG. During the year ended December 31, 2019, the Company received dividends and return of capital of $108,803 and $12,497, respectively, from its subsidiaries, the largest being $40,000 from Empower. 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 years ended December 31, 2020 and 2019, the Company paid cash dividends to GWL&A Financial in the amounts of $357,752 and $639,801 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.

4. Summary of Invested Assets

Investments in bonds consist of the following:

 

     December 31, 2020
       Book/adjusted  
  carrying value  		    Gross unrealized
gains		    Gross unrealized
losses		    Fair value

U.S. government

    $ 159,577    $ 1,744    $ 226    $ 161,095

All other governments

      11,113      —        —        11,113

U.S. states, territories and possessions

      654,122      97,055      —        751,177

Political subdivisions of states and territories

      378,996      23,006      —        402,002

Industrial and miscellaneous

      18,019,556      916,950      13,489      18,923,017

Parent, subsidiaries and affiliates

      6,433      —        —        6,433

Hybrid securities

      151,305      1,800      9,372      143,733

Loan-backed and structured securities

      6,330,981      156,801      12,050      6,475,732
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Total bonds

    $     25,712,083    $     1,197,356    $     35,137    $          26,874,302
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

     December 31, 2019
     Book/adjusted
carrying value		    Gross unrealized
gains		    Gross unrealized
losses		    Fair value

U.S. government

    $ 11,076    $ 1,446    $ —    $ 12,522

U.S. states, territories and possessions

      656,713      85,867      —        742,580

Political subdivisions of states and territories

      204,355      18,098      —        222,453

Industrial and miscellaneous

      8,024,719      453,056      2,842      8,474,933

Parent, subsidiaries and affiliates

      10,810      —        —        10,810

Hybrid securities

      165,032      147      14,831      150,348

Loan-backed and structured securities

      4,730,820      77,213      11,915      4,796,118
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Total bonds

    $ 13,803,525    $ 635,827    $ 29,588    $ 14,409,764
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

 

27

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

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, 2020
       Book/adjusted  
  carrying value  		    Fair value

Due in one year or less

    $ 1,359,756    $ 1,374,606

Due after one year through five years

      6,086,988      6,430,238

Due after five years through ten years

      8,531,983      8,990,876

Due after ten years

      4,257,648      4,458,122

Loan-backed and structured securities

      6,330,981      6,475,732
  

 

 

 

   

 

 

 

Total bonds

    $         26,567,356    $         27,729,574
  

 

 

 

   

 

 

 

Loan-backed and structured securities include those issued by U.S. government and U.S. agencies.

The following table summarizes information regarding the sales of securities:

 

     Years ended December 31,  
     2020              2019                           2018  

Consideration from sales

    $       15,627,075    $       18,741,779    $       12,788,008

Gross realized gains from sales

      81,504      511,103      32,672

Gross realized losses from sales

      7,045      46,129      30,960

At December 31, 2019, consideration from sales include securities transferred to Protective as part of the Protective transaction (see Note 9 for additional information).

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, 2020
     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    $ 149,402    $ 226    $ —    $ —    $ 149,402    $ 226
Industrial and miscellaneous      1,216,567      13,291      246,659      12,808      1,463,226      26,099
Hybrid securities      23,981      1,199      77,882      8,173      101,863      9,372
Loan-backed and structured securities      672,983      7,412      314,125      6,800      987,108      14,212
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Total bonds

    $     2,062,933    $     22,128    $     638,666    $     27,781    $     2,701,599    $     49,909
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Total number of securities in an unrealized loss position         168         47         215
     

 

 

 

      

 

 

 

      

 

 

 

 

28

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

     December 31, 2019
     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
Industrial and miscellaneous      435,115      2,113      620,988      36,363      1,056,103      38,476
Hybrid securities      12,402      93      116,868      14,739      129,270      14,832
Loan-backed and structured securities      745,246      4,367      585,239      9,796      1,330,485      14,163
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Total bonds

    $     1,192,763    $     6,573    $     1,323,095    $     60,898    $     2,515,858    $     67,471
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Total number of securities in an unrealized loss position         95         102         197
     

 

 

 

      

 

 

 

      

 

 

 

Bonds - Total unrealized losses and OTTI decreased by $17,562, or 26%, from December 31, 2019 to December 31, 2020. The decrease in unrealized losses was in industrial and miscellaneous as well as hybrid securities, and was primarily driven by higher valuations as a result of lower interest rates at December 31, 2020 compared to December 31, 2019. This decrease was offset by increases in the less than twelve month category of all asset categories, and reflects an increase in interest rates during fourth quarter of 2020 resulting in lower valuations of these bonds.

Total unrealized losses greater than twelve months decreased by $33,117 from December 31, 2019 to December 31, 2020. Industrial and miscellaneous account for 46%, or $12,808 of the unrealized losses and OTTI greater than twelve months at December 31, 2020. 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.

Loan-backed and structured securities account for 24%, or $6,800, of the unrealized losses and OTTI greater than twelve months at December 31, 2020. Of the $6,800 of unrealized losses and OTTI over twelve months on loan-backed and structured securities, 94% or $6,412 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 16% and 21% of total invested assets at December 31, 2020 and 2019, 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 $128,238 and $68,046 as of December 31, 2020 and 2019, respectively. The Company had pledged collateral related to these derivatives of $7,181 and $5,022 as of December 31, 2020 and 2019, respectively, in the normal course of business. If the credit-risk-related contingent features were triggered on December 31, 2020 the fair value of assets that could be required to settle the derivatives in a net liability position was $121,057.

 

29

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

At December 31, 2020 and 2019, the Company had pledged $7,181 and $5,022, respectively, of unrestricted cash collateral to counterparties in the normal course of business, while other counterparties had pledged $54,302 unrestricted cash and securities collateral and $71,130 of unrestricted cash collateral to the Company to satisfy collateral netting arrangements, respectively.

At December 31, 2020 and 2019, the Company had pledged U.S. Treasury bills in the amount of $5,334 and $2,331, 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 Company’s 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.

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.

 

30

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

The following tables summarize derivative financial instruments:

 

     December 31, 2020
     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    $ —   $ 10,705

Cross-currency swaps

      875,569      (4,071 )      9,352
  

 

 

 

   

 

 

 

  

 

 

 

Total derivatives designated as hedges

      897,869      (4,071 )      20,057
  

 

 

 

   

 

 

 

  

 

 

 

Derivatives not designated as hedges:        

Interest rate swaps

      1,040,944      11,326     11,449

Futures on equity indices

      2,957      1,172     1

Interest rate futures

      10,500      4,162     —  

Interest rate swaptions

      174,000      34     34

Cross-currency swaps

      541,142      23,084     21,234

Foreign currency forwards

      1,510,024      (26 )      (26 ) 
  

 

 

 

   

 

 

 

  

 

 

 

Total derivatives not designated as hedges      3,279,567      39,752     32,692
  

 

 

 

   

 

 

 

  

 

 

 

Total cash flow hedges, and derivatives not designated as hedges    $     4,177,436    $     35,681   $     52,749
  

 

 

 

   

 

 

 

  

 

 

 

(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.

 

     December 31, 2019
     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    $ —    $ 8,385

Cross-currency swaps

      880,490      35,372      38,370
  

 

 

 

   

 

 

 

   

 

 

 

Total cash flow hedges

      902,790      35,372      46,755
  

 

 

 

   

 

 

 

   

 

 

 

Derivatives not designated as hedges:

         

Interest rate swaps

      933,930      2,078      1,487

Futures on equity indices

      6,890      545      (17 ) 

Interest rate futures

      22,600      1,786      2

Interest rate swaptions

      186,550      20      20

Cross-currency swaps

      541,142      21,894      20,442
  

 

 

 

   

 

 

 

   

 

 

 

Total derivatives not designated as hedges      1,691,112      26,323      21,934
  

 

 

 

   

 

 

 

   

 

 

 

Total cash flow hedges and derivatives not designated as hedges    $     2,593,902    $     61,695    $     68,689
  

 

 

 

   

 

 

 

   

 

 

 

(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.

 

31

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

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,  
     2020      2019      2018
Derivatives not designated as hedging instruments:         

Interest rate swaps

    $ 7,306    $ 13,954    $ (8,039)  

Interest rate swaptions

      180      123      198

Futures on equity indices

      94      (241)        297

Interest rate futures

      6      (132)        159

Cross-currency swaps

      (3,975)        (8,396)        32,525

Foreign currency forwards

      (20)        —        —  
  

 

 

     

 

 

     

 

 

 

Total    $           3,591    $           5,308    $           25,140
  

 

 

     

 

 

     

 

 

 

Securities lending

Securities with a cost or amortized cost of $199,546 and $296,583, and estimated fair values of $201,848 and $297,018 were on loan under the program at December 31, 2020 and 2019, respectively.

The following table summarizes securities on loan by category:

 

     December 31,    December 31,
     2020    2019
     Book/adjusted
carrying value		    Fair value    Book/adjusted
carrying value		    Fair value
Hybrid securities    $ —    $ —    $ 2,224    $ 2,028
Industrial and miscellaneous      78,553      80,855      15,734      16,365
U.S. government      120,993      120,993      278,625      278,625
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   $           199,546    $           201,848    $           296,583    $           297,018
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

The Company’s securities lending agreements are open agreements meaning the borrower can return and the Company can recall the loaned securities at any time.

The Company received cash of $206,811 and $303,282 as collateral at December 31, 2020 and 2019, respectively. This cash was reinvested into money market funds and short-term repurchase agreements which are collateralized by U.S. government or U.S. government agency securities and mature in under 30 days.

Reverse repurchase agreements

The Company had short-term reverse repurchase agreements with book/adjusted carrying values of $2,900 and $3,300 at December 31, 2020 and December 31, 2019, respectively, with maturities of 2 days to 1 week. The fair value of securities acquired under the tri-party agreement and held on the Company’s behalf was $2,958 and $3,366 at December 31, 2020 and December 31, 2019, respectively.

 

32

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

Restricted assets

The following tables summarize investments on deposit or trust accounts controlled by various state insurance departments in accordance with statutory requirements as well as other deposits and collateral pledged by the Company:

 

     December 31, 2020
     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    $ 206,811    $ —    $ —    $ —    $ 206,811    $ 303,282    $ (96,471 )    $ —    $ 206,811      0.27%        0.28%  
Subject to reverse repurchase agreements      2,900      —        —        —        2,900      3,300      (400 )      —        2,900      0.00%        0.00%  
FHLB capital stock      500      —        —        —        500      —        500     —        500      0.00%        0.00%  
On deposit with states      4,264      —        —        —        4,264      4,294      (30 )      —        4,264      0.01%        0.01%  
On deposit with other regulatory bodies      554      —        —        —        554      579      (25 )      —        554      0.00%        0.00%  
Pledged as collateral not captured in other categories:                                

Futures margin deposits

      5,334      —        1,411      —        6,745      2,330      4,415     —        6,745      0.01%        0.01%  

Derivative cash collateral

      7,181      —        271      —        7,452      5,022      2,430     —        7,452      0.01%        0.01%  
Other restricted assets      1,175      —        —        —        1,175      1,218      (43 )      —        1,175      0.00%        0.00%  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

  

 

 

 

   

 

 

     

 

 

 

   

 

 

 

Total Restricted Assets    $ 228,719    $         —      $ 1,682    $         —      $ 230,401    $ 320,025    $ (89,624 )    $         —      $ 230,401      0.30%        0.31%  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

  

 

 

 

   

 

 

     

 

 

 

   

 

 

 

 

33

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

     December 31, 2019
     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    $ 303,282    $ —    $ —    $ —    $ 303,282    $ 45,102    $ 258,180   $ —    $ 303,282      0.62%        0.62%  
Subject to reverse repurchase agreements      3,300      —        —        —        3,300      11,200      (7,900 )      —        3,300      0.01%        0.01%  
Subject to dollar repurchase agreements      —        —        —        —        —        688,765      (688,765 )      —        —        0.00%        0.00%  
On deposit with states      4,294      —        —        —        4,294      4,443      (149 )      —        4,294      0.01%        0.01%  
On deposit with other regulatory bodies      579      —        —        —        579      603      (24 )      —        579      0.00%        0.00%  
Pledged as collateral not captured in other categories:                                

Futures margin deposits

      2,330      —        —        —        2,330      8,197      (5,867 )      —        2,330      0.01%        0.01%  

Other collateral

      —        —        —        —        —        5,320      (5,320 )      —        —        0.00%        0.00%  

Derivative cash collateral

      5,022      —        —        —        5,022      30,220      (25,198 )      —        5,022      0.01%        0.01%  
Other restricted assets      1,218      —        —        —        1,218      1,259      (41 )      —        1,218      0.00%        0.00%  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

  

 

 

 

   

 

 

     

 

 

 

   

 

 

 

Total Restricted Assets

    $ 320,025    $         —      $         —      $         —      $ 320,025    $ 795,109    $ (475,084 )    $         —      $ 320,025      0.66%        0.66%  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

  

 

 

 

   

 

 

     

 

 

 

   

 

 

 

Net investment income

The following table summarizes net investment income:

 

     Years Ended December 31,
     2020       2019                         2018
Bonds    $ 474,967   $ 621,993   $ 822,645
Preferred stock      3     —       —  
Common stock      151     455     221
Mortgage loans      107,249     158,678     169,415
Real estate      28,964     27,577     26,557
Contract loans      197,843     200,298     199,507
Cash, cash equivalents and short-term investments      5,862     16,409     4,749
Derivative instruments      18,840     16,915     16,308
Other invested assets      155,506     121,675     125,821
Miscellaneous      5,303     4,462     1,896
  

 

 

 

  

 

 

 

  

 

 

 

Gross investment income

      994,688     1,168,462     1,367,119
Expenses      (46,344 )      (69,011 )      (59,732 ) 
  

 

 

 

  

 

 

 

  

 

 

 

Net investment income    $         948,344   $         1,099,451   $         1,307,387
  

 

 

 

  

 

 

 

  

 

 

 

The amount of interest incurred and charged to investment expense during the years ended December 31, 2020, 2019 and 2018 was $17,078, $33,188 and $22,070, respectively.

 

34

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

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,
     2020    2019    2018
Net realized capital gains (losses), before federal income tax    $ 59,961    $ 574,372    $ 4,905

Less: Federal income tax

      12,592      120,618      1,030
  

 

 

 

   

 

 

 

   

 

 

 

Net realized capital gains (losses), before IMR transfer      47,369      453,754      3,875

Net realized capital gains (losses) transferred to IMR, net of federal income tax of $17,100, $122,750 and ($1,781), respectively

      64,327      461,776      (6,701 ) 
  

 

 

 

   

 

 

 

   

 

 

 

Net realized capital gains (losses), net of federal income tax expense (benefit) of ($4,508), ($2,133) and 2,811, respectively, and IMR transfer    $         (16,958 )     $         (8,022 )     $         10,576
  

 

 

 

   

 

 

 

   

 

 

 

Interest maintenance reserve

The following table summarizes activity in the interest maintenance reserve:

 

     Year ended December 31,
     2020
Reserve as of December 31, 2019    $ (7,864)  
Transferred into IMR, net of taxes      64,327
IMR reinsurance activity      661,451
  

 

 

 

Balance before amortization      717,914
Amortization released to Statement of Operations      (39,141)  
  

 

 

 

Reserve as of December 31, 2020    $ 678,773
  

 

 

 

Concentrations

The Company had the following bond concentrations based on total invested assets:

 

     Concentration by type
     December 31,
     2020   2019
Industrial and miscellaneous    58%   51%
     Concentration by industry
     December 31,
     2020   2019
Financial services    14%   13%

Mortgage loans

The recorded investment of the commercial mortgage loan portfolio categorized as performing was $4,124,412 and $2,693,435, of which $1,634,389 and $0 were loan participation agreements as of December 31, 2020 and 2019, respectively. These mortgages were current as of December 31, 2020 and 2019.

 

35

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

The maximum lending rates for commercial mortgage loans originated during the years ended December 31, 2020 and 2019 were 3.50% and 4.70%, respectively. The minimum lending rates for commercial mortgage loans originated during the years ended December 31, 2020 and 2019 were 2.45% and 4.05%, respectively.

During 2020 and 2019, 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 59% and 64%, respectively.

The balance in the commercial mortgage provision allowance was $745 as of December 31, 2020 and 2019. There was no provision activity for the years ended December 31, 2020 and 2019.

The following tables present concentrations of the total commercial mortgage portfolio:

 

     Concentration by type
     December 31,
     2020   2019

Multi-family

    49%   44%

Industrial

    15%   19%

Office

    13%   18%

Retail

    13%   12%

Other

    10%   7%
  

 

  

 

   100%   100%
  

 

  

 

   Concentration by geographic area
   December 31,
                 2020                                2019               

Pacific

    36%   33%

East North Central

    17%   20%

South Atlantic

    13%   14%

Middle Atlantic

    11%   8%

Other

    10%   8%

West South Central

    7%   10%

Mountain

    6%   7%
  

 

  

 

   100%   100%
  

 

  

 

 

36

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

5. Fair Value Measurements

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, 2020

 Assets:

    Aggregate
    fair value    		    Admitted
assets and
    liabilities    		        (Level 1)            (Level 2)            (Level 3)        Net Asset
  Value (NAV)  		      Total  
(All Levels)

Bonds

    $ 26,874,302    $ 25,712,083    $ —    $ 26,865,559    $ 8,743    $ —    $ 26,874,302

Preferred stock

      119,684      119,687      —        119,684      —        —        119,684

Common stock

      20,240      20,240      19,740      500      —        —        20,240

Mortgage loans

      4,263,386      4,123,666      —        4,263,386      —        —        4,263,386

Real estate

      227,336      43,776      —        227,336      —        —        227,336

Cash, cash equivalents and short-term investments

      3,470,912      3,470,914      2,612,741      858,171      —        —        3,470,912

Contract loans

      3,874,206      3,874,206      —        3,874,206      —        —        3,874,206

Other long-term invested assets

      244,393      235,484      —        93,637      —        150,756      244,393

Securities lending reinvested collateral assets

      206,811      206,811      62,050      144,761      —        —        206,811

Collateral under derivative counterparty collateral agreements

      43,689      43,689      43,689      —        —        —        43,689

Other collateral

      1,130      1,130      1,130      —        —        —        1,130

Receivable for securities

      87,076      84,973      —        87,076      —        —        87,076

Derivative instruments

      180,996      160,628      10      180,986      —        —        180,996

Separate account assets

      28,571,811      28,455,204      14,406,648      13,741,300      —        423,863      28,571,811
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Total assets

    $ 68,185,972    $ 66,552,491    $ 17,146,008    $ 50,456,602    $ 8,743    $ 574,619    $ 68,185,972
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

 Liabilities:

                                   

Deposit-type contracts

    $ 4,562,617    $ 5,215,962    $ —    $ 4,562,617    $ —    $ —    $ 4,562,617

Commercial paper

      98,983      98,983      —        98,983      —        —        98,983

Payable under securities lending agreements

      206,811      206,811      62,050      144,761      —        —        206,811

Collateral under derivative counterparty collateral agreements

      36,450      36,450      36,450      —        —        —        36,450

Other collateral

      1,130      1,130      1,130      —        —        —        1,130

Payable for securities

      1,277,598      1,277,598      —        1,277,598      —        —        1,277,598

Derivative instruments

      128,246      130,281      8      128,238      —        —        128,246

Separate account liabilities

      853,042      853,042      70      852,972      —        —        853,042
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Total liabilities

    $ 7,164,877    $ 7,820,257    $ 99,708    $ 7,065,169    $ —    $ —    $ 7,164,877
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

 

37

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, 2019

 Assets:

    Aggregate
    fair value    		    Admitted
assets and
    liabilities    		        (Level 1)            (Level 2)            (Level 3)        Net Asset
  Value (NAV)  		      Total  
(All Levels)

Bonds

    $ 14,409,764    $ 13,803,525    $ —    $ 14,395,297    $ 14,467    $ —    $ 14,409,764

Common Stock

      20,249      20,249      20,249      —        —        —        20,249

Mortgage loans

      2,742,188      2,692,690      —        2,742,188      —        —        2,742,188

Real estate

      137,700      44,648      —        —        137,700      —        137,700

Cash, cash equivalents and short-term investments

      818,328      818,328      298,720      519,608      —        —        818,328

Contract loans

      3,995,291      3,995,291      —        3,995,291      —        —        3,995,291

Other long-term invested assets

      128,287      120,934      —        38,070      —        90,217      128,287

Securities lending collateral assets

      303,282      303,282      33,164      270,118      —        —        303,282

Collateral under derivative counterparty collateral agreements

      76,212      76,212      76,212      —        —        —        76,212

Other collateral

      504      504      504      —        —        —        504

Receivable for securities

      6,853      5,313      —        6,853      —        —        6,853

Derivative instruments

      136,753      124,254      3      136,750      —        —        136,753

Separate account assets

      25,690,576      25,634,438      13,992,067      11,326,204      —        372,305      25,690,576
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Total assets

    $ 48,465,987    $ 47,639,668    $ 14,420,919    $ 33,430,379    $ 152,167    $ 462,522    $ 48,465,987
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

 Liabilities:

                                   

Deposit-type contracts

    $ 57,672    $ 60,296    $ —    $ 57,672    $ —    $ —    $ 57,672

Commercial paper

      99,900      99,900      —        99,900      —        —        99,900

Payable under securities lending agreements

      303,282      303,282      33,164      270,118      —        —        303,282

Collateral under derivative counterparty collateral agreements

      71,130      71,130      71,130      —        —        —        71,130

Other collateral

      504      504      504      —        —        —        504

Payable for securities

      733,150      733,150      —        733,150      —        —        733,150

Derivative instruments

      68,064      62,559      19      68,045      —        —        68,064

Separate account liabilities

      346,182      346,182      66      346,116      —        —        346,182
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Total liabilities

    $ 1,679,884    $ 1,677,003    $ 104,883    $ 1,575,001    $ —    $ —    $ 1,679,884
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Bonds, preferred and common stock

The fair values for bonds, preferred 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 mortgage’s 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.

 

38

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

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.

Cash, cash equivalents, short-term investments, collateral receivable and payable under securities lending agreements, receivable and payable for securities, 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, 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.

Limited partnership interests represent the Company’s 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, foreign currency forwards, 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.

 

39

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

Separate account assets and liabilities

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

Fair value hierarchy

The following tables present information about the Company’s 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, 2020
                      Net Asset Value      Total

 Assets:

          (Level 1)                (Level 2)                (Level 3)        (NAV)        (All Levels)    

Common stock

               

Mutual funds

    $ 17,679    $ —    $ —    $ —    $ 17,679

Industrial and miscellaneous

      2,061      —        —        —        2,061

Other invested assets

               

Limited partnerships

      —        —        —        150,756      150,756

Derivatives

               

Interest rate swaps

      —        86,984      —        —        86,984

Cross-currency swaps

      —        37,028      —        —        37,028

Interest rate swaptions

      —        34      —        —        34

Foreign currency forwards

      —        2,670      —        —        2,670

Separate account assets (1)

      14,351,361      12,467,593      —        423,863      27,242,817
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Total assets

    $ 14,371,101    $ 12,594,309    $         —      $ 574,619    $ 27,540,029
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

 Liabilities:

                         

Derivatives

               

Interest rate swaps

    $ —    $ 75,535    $ —    $ —    $ 75,535

Cross-currency swaps

      —        15,794      —        —        15,794

Foreign currency forwards

      —        2,695      —        —        2,695

Separate account liabilities (1)

      70      852,972      —        —        853,042
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Total liabilities

    $ 70    $ 946,996    $ —    $ —    $ 947,066
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

(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.

 

40

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

     Fair Value Measurements at Reporting Date
     December 31, 2019
                      Net Asset Value      Total

 Assets:

          (Level 1)                (Level 2)                (Level 3)        (NAV)        (All Levels)    

Common stock

               

Mutual funds

    $ 15,545    $ —    $ —    $ —    $ 15,545

Industrial and miscellaneous

      4,704      —        —        —        4,704

Other invested assets

               

Limited partnerships

      —        —                —        90,217      90,217

Derivatives

               

Interest rate swaps

      —        36,516      —        —        36,516

Cross-currency swaps

      —        35,457      —        —        35,457

Interest rate swaptions

      —        20      —        —        20

Separate account assets (1)

      13,935,424      10,123,099      —        372,305      24,430,828
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Total assets

    $ 13,955,673    $ 10,195,092    $ —      $ 462,522    $ 24,613,287
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Liabilities:

                         

Derivatives

               

Interest rate swaps

    $ —    $ 35,029    $ —    $ —    $ 35,029

Cross-currency swaps

      —        15,015      —        —        15,015

Separate account liabilities (1)

      66      346,116      —        —        346,182
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Total liabilities

    $ 66    $ 396,160    $ —    $ —    $ 396,226
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

(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.

6.   Non-Admitted Assets

The following table summarizes the Company’s non-admitted assets:

 

     December 31, 2020    December 31, 2019

Type

    Asset    Non-
admitted
asset		    Admitted
asset		    Asset    Non-
admitted
asset		    Admitted
asset

Cash, cash equivalents and short-term investments

          3,470,926      12          3,470,914          818,329      1          818,328

Other invested assets

      1,294,506      544,029      750,477      403,986      1,095      402,891

Premiums deferred and uncollected

      16,338      82      16,256      15,273      74      15,199

Deferred income taxes

      457,205          331,246      125,959      205,256          108,053      97,203

Due from parent, subsidiaries and affiliate

      155,676      61,092      94,584      118,239      54,644      63,595

Other prepaid assets

      2,206      2,206      —        22,712      22,712      —  

Capitalized internal use software

      —        —        —        37,917      37,917      —  

Furniture, fixtures and equipment

      5,914      5,914      —        5,095      5,095      —  

Reinsurance recoverable

      80,435      186      80,249      37,806      —        37,806

Other assets

      671,151      2,113      669,038      499,620      8,788      490,832

The following table summarizes the Company’s 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, 2020    December 31, 2019

Type

    Asset    Non-
admitted
asset		    Admitted
asset		    Asset    Non-
admitted
asset		    Admitted
asset

Common stock

    $ 13,662    $ —    $ 13,662    $ 13,537    $ —    $ 13,537

Other invested assets

            813,421            544,029            269,392            156,119            1,095            155,024

 

41

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

7.   Premiums Deferred and Uncollected

The following table summarizes the Company’s ordinary and group life insurance premiums and annuity considerations deferred and uncollected, both gross and net of loading:

 

     December 31, 2020    December 31, 2019

Type

    Gross    Net of
loading		    Gross    Net of
loading

Ordinary renewal business

    $ 18,063    $ 16,256    $ 16,888    $ 15,199

Total

    $             18,063    $             16,256    $             16,888    $             15,199
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

8.   Business Combination and Goodwill

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 recordkeeping business. This transaction was accounted for as a statutory purchase. Goodwill of $51,098 was recorded in other invested assets, which is being amortized over 10 years. At December 2020 and 2019, the Company has $0 and $23,846, respectively, of admitted goodwill related to this acquisition. During each of the years ended December 31, 2020, 2019 and 2018, the Company recorded $5,110, $5,109 and $5,110, respectively, of goodwill amortization related to this acquisition.

On August 17, 2020, the Company completed the acquisition of all of the voting equity interests in the Personal Capital Corporation, an industry-leading registered investment adviser and digital wealth manager. This transaction was accounted for as a statutory acquisition. Goodwill of $819,403 was recorded in other invested assets, which is being amortized over 10 years. At December 2020 and 2019, the Company has $277,474 and $0, respectively, of admitted goodwill related to this acquisition. During each of the years ended December 31, 2020, 2019 and 2018, the Company recorded $27,313, $0 and $0, respectively, of goodwill amortization related to this acquisition.

 

Purchased Entity    Acquisition date      Cost of acquired
entity		      Original amount of
admitted goodwill		      Admitted goodwill
as of December 31,
2020		      Amount of goodwill
amortized for the
year ended
December 31, 2020		     

Admitted goodwill as a
% of SCA

book/adjusted carrying
value, gross of admitted
goodwill

  

Retirement Plan Services

      August 29, 2014      $                     64,169    $                     51,098    $                     —    $                     5,110      —%  

Personal Capital Corporation

      August 17, 2020      $ 854,190    $ 819,403    $ 277,474    $ 27,313      70.8%  

9. Reinsurance

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. Effective June 1, 2019, all risks on non-participating policies within the above retention limits were ceded to Protective.

 

42

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

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. Additionally, Protective, which represents the Company’s most significant ceded reinsurance relationship, is an authorized reinsurer and the Protective transaction is secured by assets held in a trust.

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, 2020, 2019 and 2018 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.

On December 31, 2020 the Company completed the acquisition, via indemnity reinsurance, of the retirement services business of Massachusetts Mutual Life Insurance Company. The MassMutual transaction impacted the following financial statement lines, excluding the non-admitted deferred tax asset (in millions):

 

43

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus    December 31,
               2020          

Admitted assets:

   

Cash and invested assets:

   

Bonds

    $ 7,855

Preferred stock

      120

Mortgage loans

      1,634

Other invested assets

      132
  

 

 

 

Total cash and invested assets

      9,741
  

 

 

 

Investment income due and accrued

      64

Funds held or deposited with reinsured companies

      6,761

Other assets

      129
  

 

 

 

Total admitted assets

    $ 16,695
  

 

 

 

     December 31,
               2020          

Liabilities, capital and surplus:

   

Liabilities:

   

Aggregate reserves for life policies and contracts

    $ 14,716

Liability for deposit-type contracts

      3,183

Interest maintenance reserve

      662

Other liabilities

      113
  

 

 

 

Total liabilities

      18,674
  

 

 

 

Capital and surplus:

   

Unassigned funds

      (1,979 ) 
  

 

 

 

Total capital and surplus

      (1,979 ) 
  

 

 

 

Total liabilities, capital and surplus

    $ 16,695
  

 

 

 

Statutory Statements of Operations    December 31,
               2020          
  

 

 

 

Income:

   

Premium income and annuity consideration

    $ 15,567
  

 

 

 

Total income

      15,567
  

 

 

 

Expenses:

   

Increase in aggregate reserves for life and accident and health policies and contracts

      14,716
  

 

 

 

Total benefits

      14,716
  

 

 

 

Commissions

      2,168

Interest maintenance reserve reinsurance activity

      662
  

 

 

 

Total benefit and expenses

      17,546
  

 

 

 

Net loss from operations before federal income taxes

    $ (1,979 ) 

 

44

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

The Company received a capital contribution from parent of $2.8 billion to finance the transaction, as mentioned in Note 14.

Effective June 1, 2019, the Company terminated various related party reinsurance agreements and completed the sale, via indemnity reinsurance, of substantially all of its individual life insurance and annuity business to Protective. The Protective transaction impacted the following financial statement lines, excluding the non-admitted deferred tax asset (in millions):

 

45

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus    December 31,
               2019          

Admitted assets:

   

Cash and invested assets:

   

Bonds

    $ (7,302 ) 

Mortgage loans

      (1,288 ) 

Contract loans

      (24 ) 

Cash, cash equivalents and short-term investments

      722

Other invested assets

      (235 ) 
  

 

 

 

Total cash and invested assets

      (8,127 ) 
  

 

 

 

Investment income due and accrued

      (89 ) 

Premiums deferred and uncollected

      (10 ) 

Reinsurance recoverable

      25

Current federal income taxes recoverable

      (1 ) 

Deferred income taxes

      (21 ) 

Other assets

      (3 ) 
  

 

 

 

Total admitted assets

    $ (8,226 ) 
  

 

 

 

     December 31,
               2019          

Liabilities, capital and surplus:

   

Liabilities:

   

Aggregate reserves for life policies and contracts

    $ (8,287 ) 

Aggregate reserves for accident and health policies

      (288 ) 

Liability for deposit-type contracts

      (127 ) 

Life and accident and health policy and contract claims

      (74 ) 

Provision for policyholders’ dividends

      (63 ) 

Interest maintenance reserve

      (66 ) 

Other liabilities

      (33 ) 
  

 

 

 

Total liabilities

      (8,938 ) 
  

 

 

 

Capital and surplus:

   

Gross paid in and contributed surplus

      712
  

 

 

 

Total capital and surplus

      712
  

 

 

 

Total liabilities, capital and surplus

    $ (8,226 ) 
  

 

 

 

Statutory Statements of Operations    December 31,
               2019          

Income:

   

Premium income and annuity consideration

    $ (9,147 ) 

Commission and expense allowances on reinsurance ceded

      154
  

 

 

 

Total income

      (8,993 ) 
  

 

 

 

 

46

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

Expenses:

   

Decrease in aggregate reserves for life and accident and health policies and contracts

      (8,575 ) 
  

 

 

 

Total benefits

      (8,575 ) 

Net transfers from separate accounts

      59

Interest maintenance reserve release

      (512 ) 
  

 

 

 

Total benefit and expenses

      (9,028 ) 
  

 

 

 

Net gain from operations before federal income taxes

      35

Federal income tax benefit

      (118 ) 
  

 

 

 

Net income

    $ 153
  

 

 

 

10. Aggregate Reserves

Aggregate reserves are computed in accordance with the Commissioner’s Annuity Reserve Valuation Method (“CARVM”) and the Commissioner’s 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:

 

Interest

    - Life Insurance    2.25% to 6.00%
   - Annuity Funds    1% 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, 2020 and 2019, the Company had $3,766,969 and $3,925,596, 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.

 

47

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

The withdrawal characteristics of annuity reserves and deposit liabilities are as follows:

 

     December 31, 2020
     General Account   

Separate

Account with

Guarantees

   

Separate

Account Non-

Guaranteed

    Total   

Percent of

Total Gross

  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Subject to discretionary withdrawal:

               

With market value adjustment

    $ 13,534,241    $ —    $ —    $ 13,534,241      25.2 % 

At book value less current surrender charges of 5% or more

      820,107      —        —        820,107      1.5 % 

At fair value

      2,558,655      7,785,289      11,517,720      21,861,664      40.4 % 
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Total with adjustment or at market value

      16,913,003      7,785,289      11,517,720      36,216,012      67.1 % 

At book value without adjustment (minimal or no charge adjustment)

      2,473,434      —        —        2,473,434      4.6 % 

Not subject to discretionary withdrawal

      15,266,932      —        —        15,266,932      28.3 % 
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Total gross

      34,653,369      7,785,289      11,517,720      53,956,378      100.0 % 
              

 

 

 

Reinsurance ceded

      74,724      —        —        74,724    
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

Total, net

    $         34,578,645     $         7,785,289     $             11,517,720     $     53,881,654   
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

     December 31, 2019
    

General

Account

   

Separate

Account with

Guarantees

   

Separate
Account Non-

Guaranteed

    Total   

Percent of

Total Gross

  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Subject to discretionary withdrawal:

               

With market value adjustment

    $ 915,098    $ —    $ —    $ 915,098      3.0%  

At book value less current surrender charges of 5% or more

      817,144      —        —        817,144      2.7%  

At fair value

      —        6,358,077      11,528,947      17,887,024      58.0%  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Total with adjustment or at market value

      1,732,242      6,358,077      11,528,947      19,619,266      63.7%  

At book value without adjustment (minimal or no charge adjustment)

      97,837      —        —        97,837      0.3%  

Not subject to discretionary withdrawal

      11,091,699      —        —        11,091,699      36.0%  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Total gross

      12,921,778      6,358,077      11,528,947      30,808,802      100.0%  
              

 

 

 

Reinsurance ceded

      71,124      —        —        71,124   
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

Total, net

    $             12,850,654    $         6,358,077    $         11,528,947    $     30,737,678   
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

48

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

The withdrawal characteristics of life reserves are as follows:

 

     December 31, 2020  
     General Account      Separate Account - Nonguaranteed  
  

 

 

     

 

 

  
Subject to discretionary withdrawal, surrender values, or
policy loans:		    Account
Value		      Cash Value      Reserve      Account
Value		      Cash
Value		      Reserve  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Universal life

    $ 6,603,854    $ 6,920,255    $ 6,952,077    $ —    $ —    $ —

Other permanent cash value life insurance

      —        6,845,366      7,160,342      —        —        —  

Variable universal life

      274,843      279,968      280,000      7,579,331      7,579,331      7,579,331
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Not subject to discretionary withdrawal or no cash values:

                  

Term policies without cash value

      N/A        N/A        151,345      —        —        —  

Accidental death benefits

      N/A        N/A        466      —        —        —  

Disability - active lives

      N/A        N/A        1,093      —        —        —  

Disability - disabled lives

      N/A        N/A        117,509      —        —        —  

Miscellaneous reserves

      N/A        N/A        28,188      —        —        —  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total, gross

      6,878,697      14,045,589      14,691,020      7,579,331      7,579,331      7,579,331

Reinsurance ceded

      6,878,697      7,643,139      7,966,585      —        —        —  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total, net of reinsurance ceded

    $ —    $ 6,402,451    $ 6,724,435    $ 7,579,331    $ 7,579,331    $ 7,579,331
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

     December 31, 2019  
     General Account      Separate Account - Nonguaranteed  
  

 

 

     

 

 

  
Subject to discretionary withdrawal, surrender values, or
policy loans:		    Account
Value		      Cash Value      Reserve      Account
Value		      Cash
Value		      Reserve  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Universal life

    $ 6,618,888    $ 6,617,437    $ 6,595,652    $ —    $ —    $ —

Other permanent cash value life insurance

      —        6,949,889      7,306,841      —        —        —  

Variable universal life

      240,230      243,868      244,301      7,063,894      7,063,894      7,063,894
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Not subject to discretionary withdrawal or no cash values:

                  

Term policies without cash value

      N/A        N/A        164,921      —        —        —  

Accidental death benefits

      N/A        N/A        1,195      —        —        —  

Disability - active lives

      N/A        N/A        1,078      —        —        —  

Disability - disabled lives

      N/A        N/A        126,059      —        —        —  

Miscellaneous reserves

      N/A        N/A        29,945      —        —        —  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total, gross

      6,859,118      13,811,194      14,469,992      7,063,894      7,063,894      7,063,894

Reinsurance ceded

      6,859,118      7,330,812      7,621,851      —        —        —  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total, net of reinsurance ceded

    $ —    $ 6,480,382      6,848,141    $ 7,063,894    $ 7,063,894    $ 7,063,894
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

49

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

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:

 

     2020    2019

Balance, January 1, net of reinsurance of $284,531 and $19,082

    $ 794    $ 247,529

Incurred related to:

      

Current year

      252      9,941

Prior year

      2,018      (217,477 ) 
  

 

 

 

   

 

 

 

Total incurred

      2,270      (207,536 ) 
  

 

 

 

   

 

 

 

Paid related to:

      

Current year

      —        (9,807 ) 

Prior year

      —        (29,392 ) 
  

 

 

 

   

 

 

 

Total paid

      —        (39,199 ) 
  

 

 

 

   

 

 

 

Balance, December 31, net of reinsurance of $282,922 and $284,531

    $                     3,064    $                     794
  

 

 

 

   

 

 

 

Reserves for incurred claims and claim adjustment expenses attributable to insured events of prior years has changed by $2,018 and ($217,477) during the years ended December 31, 2020 and 2019, respectively. The change in the prior year was primarily due to the Protective transaction, with no comparable amount in the current year.

12. Commercial Paper

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 & Poor’s Ratings Services and a rating of P-1 by Moody’s Investors Service, each being the highest rating available. The Company’s issuance of commercial paper is not used to fund daily operations and does not have a significant impact on the Company’s liquidity.

The following table provides information regarding the Company’s commercial paper program:

 

     December 31,
                 2020                            2019            

Face value

    $                         98,983    $                         99,900

Carrying value

    $ 98,983    $ 99,900

Interest expense paid

    $ 1,007    $ 2,874

Effective interest rate

      0.22% - 0.27%        1.8% - 2.1%  

Maturity range (days)

      21 - 26        13 - 24  

13. Separate Accounts

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

 

50

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

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 Company’s separate accounts invest in shares of Great-West Funds, Inc. and Putnam Funds, open-end management investment companies, which are affiliates of the Company, and shares of other non-affiliated mutual funds and government and corporate bonds.

Some assets within each of the Company’s 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.

At December 31, 2020 and 2019, the Company’s separate account assets that are legally insulated from the general account claims are $28,447,693 and $25,632,375.

As of December 31, 2020 and 2019, $11,612,824 and $11,266,373, respectively, were ceded under Modified Coinsurance to Protective. While the Company holds the respective asset and liability under the Modified Coinsurance agreement, the economics are ceded to Protective, resulting in no impact to net income.

As of December 31, 2020 and 2019, $61,774,539 and $0, respectively, were acquired under modified coinsurance from MassMutual. While MassMutual holds the respective asset and liability under the modified coinsurance agreement, the economics are assumed by the Company.

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 $11,325, $11,649, $11,608, $12,581 and $12,961 for the years ended December 31, 2020, 2019, 2018, 2017 and 2016, respectively. No separate account guarantees were paid by the general account for the years ending December 31, 2020, 2019, 2018, 2017 and 2016, 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.

 

51

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

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 participant’s 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 Fund’s 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 policyholder’s 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 participant’s 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.

 

52

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

The following tables provide information regarding the Company’s separate accounts:

 

     Year Ended December 31, 2020  
     Non-indexed
guaranteed less
than/equal to 4%		      Non-guaranteed
separate account		      Total  

 

Premiums, considerations or deposits

    $ 403,703    $ 949,333    $ 1,353,036
  

 

 

     

 

 

     

 

 

  

Reserves

         

For accounts with assets at:

         

Fair value

    $ 8,767,847    $ 16,897,365    $ 25,665,212

Amortized cost

      1,187,709      —        1,187,709
  

 

 

     

 

 

     

 

 

  

Total reserves

    $         9,955,556    $ 16,897,365    $         26,852,921
  

 

 

     

 

 

     

 

 

  

By withdrawal characteristics:

         

At fair value

    $ 8,767,847    $         16,897,365    $ 25,665,212

At book value without fair value adjustment and with current surrender charge less than 5%

      1,187,709      —        1,187,709
  

 

 

     

 

 

     

 

 

  

Total subject to discretionary withdrawals

    $ 9,955,556    $ 16,897,365    $ 26,852,921
  

 

 

     

 

 

     

 

 

  
     Year Ended December 31, 2019  
     Non-indexed
guaranteed less
than/equal to 4%		      Non-guaranteed
separate account		      Total  

 

Premiums, considerations or deposits

    $ 528,618    $ 1,274,716    $ 1,803,334
  

 

 

     

 

 

     

 

 

  

Reserves

         

For accounts with assets at:

         

Fair value

    $ 7,315,010    $ 16,440,747    $ 23,755,757

Amortized cost

      1,168,009      —        1,168,009
  

 

 

     

 

 

     

 

 

  

Total reserves

    $ 8,483,019    $ 16,440,747    $ 24,923,766
  

 

 

     

 

 

     

 

 

  

By withdrawal characteristics:

         

At fair value

    $ 7,315,010    $ 16,440,747    $ 23,755,757

At book value without fair value adjustment and with current surrender charge less than 5%

      1,168,009      —        1,168,009
  

 

 

     

 

 

     

 

 

  

Total subject to discretionary withdrawals

    $ 8,483,019    $ 16,440,747    $ 24,923,766
  

 

 

     

 

 

     

 

 

  

 

53

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

A reconciliation of the amounts transferred to and from the separate accounts is presented below:

 

     Year Ended December 31,
     2020   2019   2018

Transfers as reported in the Summary of Operations of the separate account statement:

       

Transfers to separate accounts

    $     1,353,036   $     1,803,334   $     2,621,510

Transfers from separate accounts

      (1,759,730 )      (4,226,616 )      (5,198,817 ) 
  

 

 

 

  

 

 

 

  

 

 

 

Net transfers from separate accounts

      (406,694 )      (2,423,282 )      (2,577,307 ) 

Reconciling adjustments:

       

Net transfer of reserves to separate accounts

      (412,121 )      1,203,800     1,464,314

Miscellaneous other

      (1,137 )      836     528

CARVM allowance reinsured

      (8,545 )      70,071     —  

Reinsurance

      19,469     (179,568 )      —  
  

 

 

 

  

 

 

 

  

 

 

 

Net transfers as reported in the Statements of Operations

    $ (809,028 )    $ (1,328,143 )    $ (1,112,465 ) 
  

 

 

 

  

 

 

 

  

 

 

 

14. Capital and Surplus, Dividend Restrictions, and Other Matters

The payment of principal and interest under all surplus notes 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.

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 surplus note bears interest at the rate of 6.675% and was due November 14, 2034. On December 9, 2019 the Company used proceeds from the ceding commission earned on the Protective transaction to redeem the surplus note balance in full. The carrying amount of the surplus note was $0 and $0 at December 31, 2020 and 2019, respectively. Interest paid on the note was $0 for the year ended December 31, 2020 and $13,016 for the years ended December 31, 2019 and 2018, respectively, bringing total interest paid from inception to December 31, 2020 to $195,243. The amount of unapproved principal and interest was $0 at December 31, 2020 and 2019.

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. Interest paid on the note during 2020, 2019 and 2018 amounted to $420, $420 and $420, respectively, bringing total interest paid from inception to December 31, 2020 to $1,262. The amount of unapproved principal and interest was $0 at December 31, 2020.

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. Interest paid on the note during 2020, 2019, and 2018 amounted to $16,899, $16,899 and $10,515, respectively, bringing total interest paid from inception to December 31, 2020 to $44,313. The amount of unapproved principal and interest was $0 at December 31, 2020.

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 gain will be

 

54

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

amortized into income over the 30 year life of the new surplus note. Amortization of the gain during 2020, 2019 and 2018 amounted to $1,331, $1,330 and $998, respectively bringing the total amortization from inception to December 31, 2020 amounted to $3,659, leaving an unamortized balance of $36,262 in surplus as part of the surplus note amounts.

On August 12, 2020, the Company issued a surplus note in the face amount and carrying amount of $527,500 to GWL&A Financial Inc. The proceeds were used to finance the Personal Capital transaction. The surplus note bears an interest rate of 1.260% per annum. The note matures on August 12, 2025. Interest paid on the note during 2020 and 2019 amounted to $0 and $0, respectively, bringing total interest paid from inception to December 31, 2020 to $0. The amount of unapproved principal and interest were $0 at December 31, 2020.

As of the fourth quarter of 2020, the Company had received capital contributions of $3.1 billion from GWL&A Financial Inc. The proceeds were used to finance the Personal Capital and MassMutual transactions.

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 not pay a dividend during the year ended December 31, 2021, without the prior approval of the Colorado Insurance Commissioner due to large dividends paid in 2019 and the net loss related to the MassMutual ceding commission in 2020. Prior to any payment of dividends, the Company provides notice to the Colorado Insurance Commissioner. Dividends are non-cumulative and paid as determined by the Board of Directors, subject to the limitations described above. During the years ended December 31, 2020, 2019 and 2018 the Company paid dividends to GWL&A Financial Inc, totaling $357,752, $639,801, and $152,295, respectively.

The portion of unassigned funds (surplus) represented or (reduced) by each of the following items is:

 

             December 31,        
             2020                   2019        

Current year net (loss) income

    $ (1,695,012 )    $ 382,805

Unrealized (losses) gains

      (76,064 )      210,179

Deferred income taxes

      256,714     (129,400 ) 

Non-admitted assets

      (946,880 )      (238,379 ) 

Surplus as regards reinsurance

      454,045     537,566

Asset valuation reserve

      (202,003 )      (194,032 ) 

Dividends

      (357,752 )      (639,801 ) 

Other

      7,401     395,386
  

 

 

 

  

 

 

 

Total unassigned funds

    $     (2,559,551 )    $     324,324
  

 

 

 

  

 

 

 

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.

 

55

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

15. Federal Income Taxes

The following table presents the components of the net admitted deferred tax asset:

 

     December 31, 2020     December 31, 2019     Change  
     Ordinary     Capital     Total     Ordinary     Capital     Total     Ordinary     Capital     Total  

Gross deferred tax assets

    $ 481,393   $ —   $ 481,393   $ 224,934   $ —   $ 224,934   $ 256,459   $ —   $ 256,459

Valuation allowance adjustment

      —       —       —       —       —       —       —       —       —  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted gross deferred tax asset

      481,393     —       481,393     224,934     —       224,934     256,459     —       256,459

Deferred tax assets non-admitted

      (340,176 )      8,930     (331,246 )      (109,435 )      1,382     (108,053 )      (230,741 )      7,548     (223,193 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net admitted deferred tax asset

      141,217     8,930     150,147     115,499     1,382     116,881     25,718     7,548     33,266

Gross deferred tax liabilities

      (15,258 )      (8,930 )      (24,188 )      (18,296 )      (1,382 )      (19,678 )      3,038     (7,548 )      (4,510 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net admitted deferred tax asset

    $ 125,959   $ —   $ 125,959   $ 97,203   $ —   $ 97,203   $ 28,756   $ —   $ 28,756
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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:

 

     December 31, 2020      December 31, 2019      Change  
     Ordinary      Capital      Total      Ordinary      Capital      Total      Ordinary     Capital      Total  

(a) Federal income taxes paid in prior years recoverable through loss carrybacks

    $ —    $ —    $ —    $ —    $ —    $ —    $ —   $ —    $ —

(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)

      125,959      —        125,959      97,203      —        97,203      28,756     —        28,756

(i) Adjusted gross deferred tax assets expected to be realized following the balance sheet date

      125,959      —        125,959      97,203      —        97,203      28,756     —        28,756

(ii) Adjusted gross deferred tax assets expected allowed per limitation threshold

      —        —        304,773      —        —        201,129      —       —        103,644

(c) Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from (a) and (b) above) offset by gross deferred tax liabilities

      15,258      8,930      24,188      18,296      1,382      19,678      (3,038 )      7,548      4,510
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total deferred tax assets admitted as a result of the application of SSAP No. 101

    $ 141,217    $ 8,930    $ 150,147    $ 115,499    $ 1,382    $ 116,881    $ 25,718   $ 7,548    $ 33,266
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

The following table presents the threshold limitations utilized in the admissibility of deferred tax assets under paragraph 11.b of SSAP No. 101:

 

             2020                      2019          

Ratio percentage used to determine recovery period and threshold limitation amount

      918.28%        1247.01%  

Amount of adjusted capital and surplus used to determine recovery period and threshold limitation

    $         2,031,818        $         1,340,863    

 

56

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

The following table presents the impact of tax planning strategies:

 

     December 31, 2020                      December 31, 2019     Change  
         Ordinary             Capital             Ordinary             Capital             Ordinary             Capital      

Adjusted gross deferred tax asset

    $ 481,393   $ —   $ 224,934   $ —   $ 256,459   $ —

% of adjusted gross deferred tax asset by character attributable to tax planning strategies

      — %      — %      — %      — %      — %      — % 

Net admitted adjusted gross deferred tax assets

    $ 141,217   $ 8,930   $ 115,499   $ 1,382   $ 25,718   $ 7,548

% of net admitted adjusted gross deferred tax asset by character attributable to tax planning strategies

      — %      — %      — %      — %      — %      — % 

The Company’s 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,            
         2020           2019           Change    

Current income tax

    $ (20,260 )    $ (98,474 )    $ 78,214

Federal income tax on net capital gains

      12,592     120,618     (108,026 ) 
  

 

 

 

  

 

 

 

  

 

 

 

Total

    $ (7,668 )    $ 22,144   $ (29,812 ) 
  

 

 

 

  

 

 

 

  

 

 

 

             Year Ended December 31,            
         2019           2018           Change    

Current income tax

    $ (98,474 )    $ (17,604 )    $ (80,870 ) 

Federal income tax on net capital gains

      120,618     1,030     119,588
  

 

 

 

  

 

 

 

  

 

 

 

Total

    $ 22,144   $ (16,574 )    $ 38,718
  

 

 

 

  

 

 

 

  

 

 

 

 

57

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:

    2020   2019   Change

Ordinary:

       

Reserves

    $                     38,987   $                     33,451   $                     5,536

Investments

      1,784     2,025     (241 ) 

Pension accrual

      11     —       11

Provision for dividends

      2,168     2,334     (166 ) 

Fixed assets

      1,792     3,320     (1,528 ) 

Compensation and benefit accrual

      20,843     23,408     (2,565 ) 

Receivables - non-admitted

      13,737     16,568     (2,831 ) 

Tax credit carryforward

      111,979     114,265     (2,286 ) 

Ceding commission-reinsurance

      270,929     —       270,929

Other

      19,163     29,563     (10,400 ) 
  

 

 

 

  

 

 

 

  

 

 

 

Total ordinary gross deferred tax assets

      481,393     224,934     256,459

Valuation allowance adjustment

      —       —       —  
  

 

 

 

  

 

 

 

  

 

 

 

Total adjusted ordinary gross deferred tax assets

      481,393     224,934     256,459

Non-admitted ordinary deferred tax assets

      (340,176 )      (109,435 )      (230,741 ) 
  

 

 

 

  

 

 

 

  

 

 

 

Admitted ordinary deferred tax assets

      141,217     115,499     25,718
  

 

 

 

  

 

 

 

  

 

 

 

Capital:

          —  

Investments

      —       —       —  
  

 

 

 

  

 

 

 

  

 

 

 

Total capital gross deferred tax assets

      —       —       —  

Valuation allowance adjustment

      —       —       —  
  

 

 

 

  

 

 

 

  

 

 

 

Total adjusted gross capital deferred tax assets

      —       —       —  

Non-admitted capital deferred tax assets

      8,930     1,382     7,548
  

 

 

 

  

 

 

 

  

 

 

 

Admitted capital deferred tax assets

      8,930     1,382     7,548
  

 

 

 

  

 

 

 

  

 

 

 

Total admitted deferred tax assets

    $ 150,147   $ 116,881   $ 33,266
  

 

 

 

  

 

 

 

  

 

 

 

Deferred income tax liabilities:

       

Ordinary:

       

Investments

    $ (547 )    $ —   $ (547 ) 

Premium receivable

      (3,414 )      (3,192 )      (222 ) 

Policyholder reserves

      (10,931 )      (14,089 )      3,158

Experience refunds

      —       —       —  

Other

      (366 )      (1,015 )      649
  

 

 

 

  

 

 

 

  

 

 

 

Total ordinary deferred tax liabilities

      (15,258 )      (18,296 )      3,038
  

 

 

 

  

 

 

 

  

 

 

 

Capital

       

Investments

    $ (8,930 )    $ (1,382 )    $ (7,548 ) 
  

 

 

 

  

 

 

 

  

 

 

 

Total capital deferred tax liabilities

      (8,930 )      (1,382 )      (7,548 ) 
  

 

 

 

  

 

 

 

  

 

 

 

      
  

 

 

 

  

 

 

 

  

 

 

 

Total deferred tax liabilities

    $ (24,188 )    $ (19,678 )    $ (4,510 ) 
  

 

 

 

  

 

 

 

  

 

 

 

Net admitted deferred income tax asset

    $ 125,959   $ 97,203   $ 28,756
  

 

 

 

  

 

 

 

  

 

 

 

 

58

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,  

 

    

    2020   2019   Change

Total deferred income tax assets

    $                     481,393   $                     224,934   $ 256,459

Total deferred income tax liabilities

      (24,188 )      (19,678 )      (4,510 ) 
  

 

 

 

  

 

 

 

  

 

 

 

Net deferred income tax asset

    $ 457,205   $ 205,256     251,949
  

 

 

 

  

 

 

 

  

Tax effect of unrealized capital gains (losses)

                              5,187

Other surplus

          (422 ) 
      

 

 

 

Change in net deferred income tax

        $ 256,714
      

 

 

 

     December 31,  

 

    

    2019   2018   Change

Total deferred income tax assets

    $ 224,934   $ 371,710   $ (146,776 ) 

Total deferred income tax liabilities

      (19,678 )      (31,065 )      11,387
  

 

 

 

  

 

 

 

  

 

 

 

Net deferred income tax asset

    $ 205,256   $ 340,645     (135,389 ) 
  

 

 

 

  

 

 

 

  

Tax effect of unrealized capital gains (losses)

          7,108

Other surplus

          (1,119 ) 
      

 

 

 

Change in net deferred income tax

        $ (129,400 ) 
      

 

 

 

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% to income before income taxes. The significant items causing this difference are as follows:

 

     December 31,  
     2020     2019     2018  

Income tax expense at statutory rate

      $                (356,646 )    $                 61,396   $             60,337

Earnings from subsidiaries

      (30,013 )      (22,849 )      (22,003 ) 

Swap gain on debt refinancing

      —       —       8,175

Ceding commission from Protective, net of transaction expenses

      (17,540 )      112,889     —  

Dividend received deduction

      (5,553 )      (6,161 )      (6,657 ) 

Tax adjustment for interest maintenance reserve

      130,717     (1,739 )      (5,221 ) 

Interest maintenance reserve release on Protective transaction

      —       (107,527 )      —  

Prior year adjustment

      552     (1,695 )      (4,124 ) 

Tax effect on non-admitted assets

      4,884     3,425     (3,476 ) 

Tax credits

      (2,963 )      (3,660 )      (2,901 ) 

Income tax on realized capital gain (loss)

      12,592     120,618     1,030

Tax contingency

      931     1,129     (607 ) 

Other

      (1,343 )      (4,282 )      (395 ) 
  

 

 

    

 

 

    

 

 

  

Total

    $ (264,382 )    $ 151,544   $ 24,158
  

 

 

    

 

 

    

 

 

  
      
  

 

 

  
     2020     2019     2018  
      

Federal income taxes incurred

    $ (7,668 )    $ 22,144   $ (16,574 ) 

Change in net deferred income taxes

      (256,714 )      129,400     40,732
  

 

 

    

 

 

    

 

 

  

Total income taxes

    $ (264,382 )    $ 151,544   $ 24,158
  

 

 

    

 

 

    

 

 

  

 

59

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

As of December 31, 2020, the Company had no operating loss carryforwards.

As of December 31, 2020, the Company has Guaranteed Federal Low Income Housing tax credit carryforwards of $111,979. These credits will begin to expire in 2031.

As of December 31, 2020, the Company has foreign tax credit carryforwards of $0.

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, 2020

    $               20,366

Year Ended December 31, 2019

      132,977

Year Ended December 31, 2018

      4,146

The Company has no deposits admitted under Section 6603 of the Internal Revenue Code.

The Company’s federal income tax return is consolidated with the following entities (the “U.S. Consolidated Group”):

Great-West Lifeco U.S. LLC

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 Investor Services, Inc.

PanAgora Holdings, Inc

PanAgora Asset Management, Inc.

Putnam Advisory Holdings, LLC

Putnam Advisory Holdings II, LLC

Empower Retirement, LLC

Advised Assets Group, LLC

Great-West Trust Company, LLC

Great-West Capital Management, LLC

Personal Capital Corporation

Personal Capital Advisors Corporation

Personal Capital Services Corporation

Personal Capital Technology Corporation

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.

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.

 

60

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

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 No. 101. As of December 31, 2020 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, 2020 and 2019, the Company recognized approximately $931 and $1,129 of expense from interest and penalties related to the uncertain tax positions. The Company had $2,374 and $1,443 accrued for the payment of interest and penalties at December 31, 2020 and 2019, respectively.

The Company files income tax returns in the U.S. federal jurisdiction and various states. The Company’s parent, with which it files a consolidated federal income tax return, is under examination for tax years 2007 through 2014 with respect to foreign tax credit refund claims. Tax Years 2015 through 2019 are open to federal examination by the Internal Revenue Service. The Company does not expect significant increases or decreases to unrecognized tax benefits relating to federal, state or local audits.

The Company does not have any foreign operations as of the periods ended December 31, 2020 and December 31, 2019 and therefore is not subject to the tax on Global Intangible Low-Taxed Income.

16. Employee Benefit Plans

Post-Retirement Medical and Supplemental Executive Retirement Plans

Previously, the Company sponsored an unfunded Post-Retirement Medical Plan (the “Medical Plan”) that provided 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 Company’s policy is to fund the cost of the Medical Plan benefits in amounts determined at the discretion of management. Effective January 1, 2020, the Company transferred the Medical Plan to its subsidiary, Empower.

The Company 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 each employee 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.

 

61

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 Company’s 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,
     2020   2019   2020   2019   2020   2019
Change in projected benefit obligation:                         

Benefit obligation, January 1

    $ 22,696   $ 19,539   $ 40,801   $ 37,562   $ 63,497   $ 57,101

Service cost

      —       1,435     —       —       —       1,435

Interest cost

      —       825     1,175     1,510     1,175     2,335

Actuarial (gain) loss

      —       2,059     2,753     4,109     2,753     6,168

Regular benefits paid

      —       (1,162 )      (2,566 )      (2,380 )      (2,566 )      (3,542 ) 

Benefit obligation transferred to Empower

      (22,696 )      —       —       —       (22,696 )      —  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Benefit obligation and under funded status, December 31

    $ —   $ 22,696   $ 42,163   $ 40,801   $ 42,163   $ 63,497
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Accumulated benefit obligation

                —     $           22,696               42,163               40,801               42,163   $           63,497
     Post-Retirement
Medical Plan		   Supplemental Executive
Retirement Plan		   Total
     Year Ended December 31,   Year Ended December 31,   Year Ended December 31,
     2020   2019   2020   2019   2020   2019

Change in plan assets:

             

Fair Value of plan assets, January 1

    $ —     $ —   $ —   $ —   $ —   $ —

Employer contributions

      —       1,162     2,566     2,380     2,566     3,542

Regular Benefits paid

      —       (1,162 )      (2,566 )      (2,380 )      (2,566 )      (3,542 ) 
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Fair 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 Company’s Post-Retirement Medical and Supplemental Executive Retirement plans:

 

     Post-Retirement
Medical Plan		   Supplemental Executive
Retirement Plan		   Total
     December 31,   December 31,   December 31,
     2020    2019   2020   2019   2020   2019

Amounts recognized in the Statutory
Statements of Admitted Assets,
Liabilities, Capital and Surplus:

              

Accrued benefit liability

    $ —    $ (22,224 )    $ (38,349 )    $ (39,470 )    $ (38,349 )    $ (61,694 ) 

Liability for pension benefits

      —        (472 )      (3,814 )      (1,331 )      (3,814 )      (1,803 ) 
  

 

 

 

   

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Total other liabilities

    $ —    $ (22,696 )    $ (42,163 )    $ (40,801 )    $ (42,163 )    $ (63,497 ) 
  

 

 

 

   

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Unassigned surplus (deficit)

    $             —    $         (472 )    $             (3,814 )    $             (1,331 )    $         (3,814 )    $      (1,803)  

 

62

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 Company’s Post-Retirement Medical and Supplemental Executive Retirement plans:

 

     Post-Retirement
Medical Plan		   Supplemental Executive
Retirement Plan		   Total
     December 31,   December 31,   December 31,
     2020    2019   2020   2019   2020   2019

Unrecognized net actuarial gain (loss)

    $             —    $             2,869   $             (3,515 )    $             (732 )    $             (3,515 )    $             2,137

Unrecognized prior service cost

      —        (3,341 )      (299 )      (599 )      (299 )      (3,940 ) 

The following table presents amounts in unassigned funds recognized as components of net periodic benefit cost for the Company’s 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,
     2020   2019   2020   2019   2020   2019

Items not yet recognized as component of

net periodic cost on January 1,

    $ (472 )    $ 995   $ (1,331 )    $ 2,529   $ (1,803 )    $ 3,524

Transferred to Empower

      472     —       —       —       472     —  

Prior service cost recognized in net periodic cost

      —       817     299     299     299     1,116

(Gain) loss recognized in net periodic cost

      —       (225 )      (29 )      (50 )      (29 )      (275 ) 

Gain (loss) arising during the year

                  —                   (2,059 )                  (2,753 )                      (4,109 )                  (2,753 )                  (6,168 ) 
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Items not yet recognized as component of

net periodic cost on December 31

    $ —   $ (472 )    $ (3,814 )    $ (1,331 )    $ (3,814 )    $ (1,803 ) 
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

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, 2021:

 

     Post-Retirement
Medical Plan		    Supplemental
Executive
Retirement Plan		   Total

Net actuarial gain

    $                         —    $                         (29 )    $                         (29 ) 

Prior service cost

      —        299     299

The expected benefit payments for the Company’s Supplemental Executive Retirement plan for the years indicated are as follows:

 

     2021      2022      2023      2024      2025      2026 through
2030		  

Supplemental executive retirement plan

                      2,567                      10,282                  5,756                  2,179                  1,962                  8,382

 

63

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,
     2020        2019   2018        2020        2019   2018        2020        2019   2018

Components of net periodic cost (benefit):

                                  

Service cost

    $ —      $ 1,435   $ 1,425      $ —      $ —   $ —      $ —      $ 1,435   $ 1,425

Interest cost

      —          825     703        1,175        1,510     1,356        1,175        2,335     2,059

Amortization of unrecognized prior service cost

      —          817     817        299        299     324        299        1,116     1,141

Amortization of gain from prior periods

      —          (225 )      (82 )         (29 )         (50 )      (45 )         (29 )         (275 )      (127 ) 

Net periodic cost

    $     —      $     2,852   $     2,863      $     1,445      $     1,759   $     1,635      $     1,445      $     4,611   $     4,498
                                                                                       

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, 2020 and 2019:

 

    Post-Retirement Medical Plan
    December 31,
    2020       2019

Discount rate

   N/A     3.16%

Initial health care cost trend

   N/A     6.00%

Ultimate health care cost trend

   N/A     5.00%

Year ultimate trend is reached

   N/A     2024
    Supplemental Executive Retirement Plan
    December 31,
    2020       2019

Discount rate

   2.09%     2.98%

Rate of compensation increase

   N/A     N/A

During 2020, the Company adopted the Society of Actuaries Morality Improvement Scale (MP-2020).

During 2019, the Company adopted the Society of Actuaries Morality Improvement Scale (MP-2019).

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,
    2020       2019

Discount rate

   N/A     4.34%

Initial health care cost trend

   N/A     6.25%

Ultimate health care cost trend

   N/A     5.00%

Year ultimate trend is reached

   N/A     2024

 

64

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

    Supplemental Executive Retirement Plan  
    Year Ended December 31,
    2020        2019

Discount rate

   2.98%      4.16%

Rate of compensation increase

   N/A      N/A

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.

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 Company’s share of net expense for the pension plan was $7,806, $14,842 and $3,057 during the years ended December 31, 2020, 2019 and 2018.

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 Other liabilities in the accompanying statutory financial statements, are $49,595 and $41,792 at December 31, 2020 and 2019, respectively.

Previously, the Company sponsored 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”). Effective January 1, 2020, the Company transferred the qualified defined contribution benefit plan to its subsidiary, Empower Retirement, LLC. Previously, the Company matched a percentage of employee contributions in cash. The Company recognized $0, $24,955 and $11,935 in expense related to this plan for the years ended December 31, 2020, 2019 and 2018, respectively.

17. Share-Based Compensation

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 Company’s 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 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.

 

65

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

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,                   
  

 

 

  
     2020      2019      2018  
  

 

 

     

 

 

  

Lifeco Stock Plan

    $ 593    $ 899    $ 768

Performance Share Unit Plan

      6,431      15,458      5,388
  

 

 

     

 

 

  

Total compensation expense

    $         7,024    $         16,357    $         6,156
  

 

 

     

 

 

  

Income tax benefits

    $ 1,465    $ 3,414    $ 1,243

During the year ended December 31, 2020, 2019 and 2018, the Company had $48, $(67) and $26 respectively, income tax benefits (expense) realized from stock options exercised.

The following table presents the total unrecognized compensation expense related to share-based compensation at December 31, 2020 and the expected weighted average period over which these expenses will be recognized:

 

                 Expense                  Weighted average
      period (years)      		  
  

 

 

     

 

 

  

Lifeco Stock Plan

    $ 709      1.4

Performance Share Unit Plan

      5,562      1.2

 

66

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

Equity Award Activity

During the year ended December 31, 2020, Lifeco did not grant stock options to employees of the Company.

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, 2020

     3,450,130   $ 25.03    

Granted

     —       —      

Exercised

     (210,900 )      20.78    

Cancelled and expired

     (67,760 )      25.89    
 

 

 

        

Outstanding, December 31, 2020

                 3,171,470     25.95   5.5   $ 1,362
 

 

 

        

Vested and expected to vest, December 31, 2020

     3,171,470     25.89   5.5     1,362

Exercisable, December 31, 2020

     2,170,850     26.11   4.6     1,332

(1) The aggregate intrinsic value is calculated as the difference between the market price of Lifeco common shares on December 31, 2020 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,                   
  

 

 

  
         2020              2019              2018      
  

 

 

     

 

 

     

 

 

  

Weighted average fair value of options granted

      NA      $ 2.32    $ 0.95

Intrinsic value of options exercised (1)

      1,097      3,282      345

Fair value of options vested

      911      1,358      1,115

(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.

There were no options granted during 2020. The fair value of the options granted during the years ended December 31, 2019 and 2018 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,                   
  

 

 

  
         2020              2019             2018      
  

 

 

     

 

 

    

 

 

  

Dividend yield

      NA        5.46 %      4.55 % 

Expected volatility

      NA        19.68 %      9.01 % 

Risk free interest rate

      NA        1.83 %      2.03 % 

Expected duration (years)

      NA        6.0     6.0

 

67

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

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, 2020

      1,156,384

Granted

      67,511

Forfeited

      (7,063 ) 

Paid

      (258,005 ) 
  

 

 

 

Outstanding, December 31, 2020

      958,827
  

 

 

 

Vested and expected to vest, December 31, 2020

      958,827

The cash payment in settlement of the Performance Share Unit Plan units was $8,569, $5,815 and $4,104 for the years ended December 31, 2020, 2019 and 2018, respectively.

18. Participating Insurance

Individual life insurance premiums paid, net of reinsurance, under individual life insurance participating policies were 55%, (1)%, and 1% of total individual life insurance premiums earned during the years ended December 31, 2020, 2019 and 2018 respectively. The Company accounts for its policyholder dividends based upon the three-factor formula. The Company paid dividends in the amount of $18,497, $23,461 and $31,276 to its policyholders during the years ended December 31, 2020, 2019 and 2018, respectively.

19. Concentrations

No customer accounted for 10% or more of the Company’s revenues during the year ended December 31, 2020. In addition, the Company is not 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 Company’s estimated future contractual obligations:

 

     Payment due by period  

                                                 

    2021      2022      2023      2024      2025      Thereafter      Total  

Surplus notes - principal (1)

    $ —    $ —    $ —    $ —    $ 527,500    $ 358,219    $ 885,719

Surplus notes - interest (2)

      23,965      23,965      23,965      23,965      22,304      381,066      499,230

Investment purchase obligations (3)

      492,805               1,125      5,000      498,930

Operating leases (4)

      6,488      3,727      3,234      3,185      2,814      19,145      38,593

Other liabilities (5)

      5,241      22,732      18,381      4,804      5,262      27,882      84,302
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $       528,499    $       50,424    $       45,580    $       31,954    $       559,005    $       791,312    $       2,006,774
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

(1) Surplus notes principal - Represents contractual maturities of principal due to the Company’s 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

 

68

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

Company’s Statement of Admitted Assets, Liabilities, Capital and Surplus because of the $36,262 of unamortized debt modification gain as discussed in Footnote 14.

(2) Surplus notes interest - All surplus notes bear 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, 2020.

(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, 2020 and 2019 were $498,930 and $131,651, of which $447,515 and $120,990 were related to limited partnership interests. Related party transactions comprise of $94,803 and $0 of the unfunded limited partnership interests at December 31, 2020 and 2019, respectively. At December 31, 2020 and 2019, $492,805 and $131,651 were due within one year, $1,125 and $0 were due within four to five years, and $5,000 and $0 were due after five 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 Company’s operating lease obligations. Rent expense for the years ended December 31, 2020, 2019 and 2018 were $25,324, $33,473 and $27,768 respectively.

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 Company’s supplemental executive retirement plan through 2027

•  

Unrecognized tax benefits

•  

Miscellaneous purchase obligations to acquire goods and services

•  

Sport partner sponsorship payments

•  

Personal Capital Corporation contingent payment consideration

As part of the Personal Capital Corporation acquisition, the Company included contingent consideration based on the potential achievement of certain key metrics. An initial contingent consideration earn-out value of $20 million represents management’s best estimate, and it could be up to $175 million based on the achievement of growth in assets under management metrics defined in the Merger Agreement, payable following measurements through December 31, 2021 and December 31, 2022

Originally entered into on March 1, 2018 and as amended on July 7, 2020, the Company has a revolving credit facility agreement in the amount of $50,000 for general corporate purposes. The credit facility has 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 $673,000, 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, 2020 and 2019. At December 31, 2020 and 2019 there were no outstanding amounts related to the current and prior credit facilities.

 

69

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Notes to Statutory Financial Statements

(In Thousands, Except Share Amounts)

 

In addition, the Company has other letters of credit with a total amount of $8,595, renewable annually for an indefinite period of time. At December 31, 2020 and 2019, there were no outstanding amounts related to those letters of credit.

In October 2020, the Company became a member of the FHLB of Topeka. FHLB provides access to billions of low-cost funding dollars to banks, credit unions, insurance companies and community development financial institutions in the United States. At December 31, 2020, the Company had an estimated borrowing capacity of approximately $2,500,000. All borrowings must be collateralized and the required collateral amount is based on the type of investment securities pledged. No amount was borrowed as of December 31, 2020. Additionally, the Company was required to purchase FHLB of Topeka stock and, at December 31, 2020 owns $500 of Class A stock which are currently not eligible for redemption.

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 Company’s 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 Company’s 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 liabilities transferred and ceding commission received at the closing of the Protective transaction were subject to future adjustments. In October 2019, Protective Life provided the Company with its listing of proposed adjustments with respect to the liabilities transferred, which the Company formally objected to in December 2019. In November 2020, the parties reached resolution and settled cash for adjustments which did not have a material effect on the consolidated financial position of the Company and no further adjustments are expected.

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 Company’s 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, 2020 and 2019 for obligations under the guarantee.

21.  Subsequent Events

Management has evaluated subsequent events for potential recognition or disclosure in the Company’s statutory financial statements through April 1, 2021, the date on which they were issued. On February 3, 2021, the Company’s Board of Directors declared a dividend of $100,000. The dividend was paid on March 29, 2021 to the Company’s sole shareholder, GWL&A Financial. Prior to the payment of this dividend, the Company received approval from the Colorado Insurance Commissioner.

 

70

SUPPLEMENTAL SCHEDULES

(See Independent Auditors’ Report)

 

71

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Supplemental Schedule of Selected Statutory Financial Data

As of and for the Year Ended December 31, 2020

(In Thousands)

 

Investment income earned:

   

U.S. Government bonds

    $ 1,631

Other bonds (unaffiliated)

      472,771

Bonds of affiliates

      564

Preferred stocks (unaffiliated)

      3

Common stocks (unaffiliated)

      151

Mortgage loans

      107,249

Real estate

      28,964

Contract loans

      197,843

Cash, cash equivalents and short-term investments

      5,862

Derivative instruments

      18,840

Other invested assets

      155,506

Aggregate write-ins for investment income

      5,303
  

 

 

  

Gross investment income

    $ 994,687
  

 

 

  

Real estate owned - Book value less encumbrances:

    $ 43,776

Mortgage loans - Book value:

   

Commercial mortgages

    $ 4,124,412

Mortgage loans by standing - Book value:

   

Good standing

    $ 4,124,412

Other long-term invested assets - Statement value:

    $ 504,876

Bonds and stocks of parents, subsidiaries and affiliates - Book value:

   

Bonds

    $ 6,433

Common stocks

    $ 62,550

Bonds and short-term investments by maturity and NAIC designation:

   

Bonds by maturity - Statement value:

   

Due within one year or less

    $ 1,833,337

Over 1 year through 5 years

      8,459,940

Over 5 years through 10 years

      10,905,977

Over 10 years through 20 years

      3,262,440

Over 20 years

      2,105,662
  

 

 

  

Total by maturity

      $26,567,356
  

 

 

  

 

72

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Supplemental Schedule of Selected Statutory Financial Data

As of and for the Year Ended December 31, 2020

(In Thousands)

 

Bonds and short-term investments by NAIC designation - Statement value:

   

NAIC 1

    $ 14,774,212

NAIC 2

      11,083,416

NAIC 3

      661,042

NAIC 4

      46,004

NAIC 5

      2,312

NAIC 6

      370
  

 

 

  

Total by NAIC designation

    $ 26,567,356
  

 

 

  

Total bonds publicly traded

    $ 14,796,022

Total bonds privately placed

    $ 11,771,334

Preferred stocks - Statement value

    $ 119,687

Common stocks - Market value

    $ 223,883

Short-term investments - Book value

    $ 408,168

Options, caps and floors owned - Statement value

    $ 34

Collar, swap and forward agreements open - Statement value

    $ 30,313

Futures contracts open - Current value

    $ 5,334

 

73

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Supplemental Schedule of Selected Statutory Financial Data

As of and for the Year Ended December 31, 2020

(In Thousands)

 

Life insurance in-force:

   

Ordinary

    $ 3,588,007

Group life

      —  

Life insurance policies with disability provisions in-force:

   

Ordinary

    $ 9,504

Group life

      18,617,777

Supplementary contracts in-force:

   

Ordinary - not involving life contingencies:

   

Amount on deposit

    $ —

Income payable

      —  

Ordinary - involving life contingencies:

   

Income payable

      —  

Group - not involving life contingencies:

   

Amount on deposit

      —  

Income payable

      —  

Group - involving life contingencies:

   

Income payable

      125

Annuities:

   

Ordinary:

   

Immediate - amount of income payable

    $ 49

Deferred - fully paid account balance

      318

Deferred - not fully paid - account balance

      —  

Group:

   

Certificates - amount of income payable

    $ 60,137

Certificates - fully paid account balance

      1,489

Certificates - not fully paid account balance

      31,651,605

Accident and health insurance - equivalent premiums in-force:

   

Group

    $ —

Deposit funds and dividend accumulations

   

Deposit funds - account balance

      28,062

Deposit accumulations - account balance

      18,257

Claim payments:

   

Group accident and health:

   

2020

    $ 5,078

2019

      9,460

2018

      5,486

2017

      2,786

2016

      2,829

Prior

      16,848

 

74

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

Supplemental Schedule of Selected Statutory Financial Data

As of and for the Year Ended December 31, 2020

(In Thousands)

 

Supplemental Schedule of the Annual Audit Report

Supplemental Schedule Regarding Reinsurance Contracts with Risk-Limiting Features

Reinsurance contracts subject to Appendix A-791—Life and Health Reinsurance Agreements of the NAIC Accounting Practices and Procedures Manual:

The Company has not entered into, renewed or amended reinsurance contracts on or after January 1, 1996, which include risk-limiting features, as described in SSAP No. 61R—Life, Deposit-Type and Accident and Health Reinsurance (SSAP No. 61R). Deposit accounting, as described in SSAP No. 61R was not applied for reinsurance contracts, which include risk-limiting features since the Company does not have applicable contracts.

Reinsurance contracts NOT subject to Appendix A-791—Life and Health Reinsurance Agreements of the NAIC Accounting Practices and Procedures Manual:

The Company has not applied reinsurance accounting, as described in in SSAP No. 61R, to reinsurance contracts entered into, renewed or amended on or after January 1, 1996, which include risk-limiting features, as described in SSAP No. 61R since the Company does not have applicable contracts. As such, the reinsurance reserve credit, as described in SSAP No. 61R, was not reduced.

Payments to reinsurers (excluding reinsurance contracts with a federal or state facility):

The Company has not entered into, renewed or amended reinsurance contracts on or after January 1, 1996, which contain provisions that allow (1) the reporting of losses or settlements with the reinsurer to occur less frequently than quarterly or (2) payments due from the reinsurer to not be made in cash within ninety days of the settlement date unless there is no activity during the period.

The Company has not entered into, renewed or amended reinsurance contracts on or after January 1, 1996, which contain a payment schedule, accumulating retentions from multiple years or any features inherently designed to delay timing of the reimbursement to the ceding company.

Reinsurance contracts NOT subject to Appendix A-791—Life and Health Reinsurance Agreements of the NAIC Accounting Practices and Procedures Manual and NOT yearly-renewable term that meet the risk transfer requirements under SSAP No. 61R:

The Company has not reflected reinsurance reserve credit for any reinsurance contracts entered into, renewed or amended on or after January 1, 1996 for the following:

 

  a.

Assumption reinsurance

  b.

Non-proportional reinsurance that does not result in significant surplus relief

The Company does not prepare financial information under generally accepted accounting principles (“GAAP”). As such, the Company has not ceded any risk during the period ended December 31, 2020 under any reinsurance contracts entered into, renewed or amended on or after January 1, 1996, that applies reinsurance accounting, as described under SSAP No. 61R for statutory accounting principles (SAP) and applies deposit accounting under GAAP.

The Company has not ceded any risk during the period ended December 31, 2020 under any reinsurance contracts entered into, renewed or amended on or after January 1, 1996, accounted for as reinsurance under GAAP and as a deposit under SSAP No. 61R.

 

75

COLI VUL-2 Series Account

of Great-West Life & Annuity

Insurance Company

Annual Statement as of and for the year ended

December 31, 2020 and Report of Independent

Registered Public Accounting Firm

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, 2020, 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, 2020, and 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 Account’s management. Our responsibility is to express an opinion on the Series Account’s 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 audits 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 Account’s 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, 2020, by correspondence with mutual fund companies. We believe that our audits provide a reasonable basis for our opinion.

/s/ DELOITTE & TOUCHE LLP

Denver, Colorado

May 10, 2021

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 assets
and liabilities

   

Statement of operations

   

Statements of changes in net assets

ALGER SMALL CAP GROWTH PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
AMERICAN CENTURY INVESTMENTS VP CAPITAL APPRECIATION FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
AMERICAN CENTURY INVESTMENTS VP INCOME & GROWTH FUND    N/A    N/A    For the period January 1, 2019 to November 25, 2019
AMERICAN CENTURY INVESTMENTS VP INFLATION PROTECTION FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
AMERICAN CENTURY INVESTMENTS VP INTERNATIONAL FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
AMERICAN CENTURY INVESTMENTS VP MID CAP VALUE FUND    December 31, 2020    For the year ended December 31, 2020    For the year ended December 31, 2020 and for the period March 13, 2019 to December 31, 2019
AMERICAN CENTURY INVESTMENTS VP ULTRA FUND    N/A    N/A    For the period November 26, 2019 to December 5, 2019
AMERICAN CENTURY INVESTMENTS VP VALUE FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
AMERICAN FUNDS IS GLOBAL SMALL CAPITALIZATION FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
AMERICAN FUNDS IS GROWTH FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
AMERICAN FUNDS IS GROWTH AND INCOME FUND    December 31, 2020    For the period of September 21, 2020 to December 31, 2020    For the period of September 21, 2020 to December 31, 2020
AMERICAN FUNDS IS INTERNATIONAL FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
AMERICAN FUNDS IS NEW WORLD FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
BLACKROCK GLOBAL ALLOCATION VI FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
BLACKROCK HIGH YIELD VI FUND    December 31, 2020    For the period of September 21, 2020 to December 31, 2020    For the period of September 21, 2020 to December 31, 2020
BNY MELLON STOCK INDEX FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
BNY MELLON VIF INTERNATIONAL EQUITY PORTFOLIO    N/A    For the period of January 1, 2020 to May 4, 2020    For the period of January 1, 2020 to May 4, 2020 and for the year ended December 31, 2019

 

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

 

CLEARBRIDGE VARIABLE MID CAP PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
CLEARBRIDGE VARIABLE SMALL CAP GROWTH PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
COLUMBIA VARIABLE PORTFOLIO - SMALL CAP VALUE FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
DAVIS FINANCIAL PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
DAVIS VALUE PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
DELAWARE VIP INTERNATIONAL SERIES    December 31, 2020    For the period of December 11, 2020 to December 31, 2020    For the period of December 11, 2020 to December 31, 2020
DELAWARE VIP INTERNATIONAL VALUE EQUITY SERIES    N/A    For the period of January 1, 2020 to December 11, 2020    For the period of January 1, 2020 to December 11, 2020 and for the year ended December 31, 2019
DELAWARE VIP SMALL CAP VALUE SERIES    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
DWS CROCI® U.S. VIP    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
DWS HIGH INCOME VIP    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
DWS SMALL CAP INDEX VIP    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
DWS SMALL MID CAP VALUE VIP    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
EATON VANCE VT FLOATING-RATE INCOME FUND    December 31, 2020    For the period of September 21, 2020 to December 31, 2020    For for the period of September 21, 2020 to December 31, 2020
FEDERATED HERMES KAUFMANN FUND II    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
FIDELITY VIP CONTRAFUND PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
FIDELITY VIP EMERGING MARKETS PORTFOLIO    December 31, 2020    For the period of September 21, 2020 to December 31, 2020    For the period of September 21, 2020 to December 31, 2020
FIDELITY VIP GROWTH PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
FIDELITY VIP INVESTMENT GRADE BOND PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
FIDELITY VIP MID CAP PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GOLDMAN SACHS VIT MID CAP VALUE FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020

 

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

 

GOLDMAN SACHS VIT MULTI-STRATEGY ALTERNATIVES PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For the year ended December 31, 2020 and for the period March 13, 2019 to December 31, 2019
GREAT-WEST AGGRESSIVE PROFILE FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST ARIEL MID CAP VALUE FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST BOND INDEX FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST CONSERVATIVE PROFILE FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST CORE BOND FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST EMERGING MARKETS EQUITY FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST GLOBAL BOND FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST GOVERNMENT MONEY MARKET FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST INFLATION-PROTECTED SECURITIES FUND    December 31, 2020    For the period of September 21, 2020 to December 31, 2020    For the period of September 21, 2020 to December 31, 2020
GREAT-WEST INTERNATIONAL INDEX FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST INTERNATIONAL VALUE FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST LARGE CAP GROWTH FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST LARGE CAP VALUE FUND INVESTOR II CLASS    December 31, 2020    For the year ended December 31, 2020    For the year ended December 31, 2020 and for the period October 28, 2019 to December 31, 2019
GREAT-WEST LIFETIME 2015 FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST LIFETIME 2020 FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST LIFETIME 2025 FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST LIFETIME 2030 FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST LIFETIME 2035 FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST LIFETIME 2040 FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST LIFETIME 2045 FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST LIFETIME 2050 FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST LIFETIME 2055 FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020

 

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 MID CAP VALUE FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST MODERATE PROFILE FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST MODERATELY AGGRESSIVE PROFILE FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST MODERATELY CONSERVATIVE PROFILE FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST MULTI-SECTOR BOND FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST REAL ESTATE INDEX FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST S&P MID CAP 400® INDEX FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST S&P SMALL CAP 600® INDEX FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST SHORT DURATION BOND FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST SMALL CAP VALUE FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST T. ROWE PRICE MID CAP GROWTH FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
GREAT-WEST T. ROWE PRICE EQUITY INCOME FUND    N/A    N/A    For the period January 1, 2019 to October 28, 2019
GREAT-WEST U.S. GOVERNMENT SECURITIES FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
INVESCO OPPENHEIMER V.I. MAIN STREET SMALL CAP FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
INVESCO V.I. CORE EQUITY FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
INVESCO V.I. GLOBAL REAL ESTATE FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
INVESCO V.I. HEALTH CARE FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
INVESCO V.I. INTERNATIONAL GROWTH FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
INVESCO V.I. MID CAP CORE EQUITY FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
INVESCO V.I. TECHNOLOGY FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
JANUS HENDERSON VIT BALANCED PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
JANUS HENDERSON VIT ENTERPRISE PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For the year ended December 31, 2020 and for the period June 5, 2019 to December 31, 2019

 

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

 

JANUS HENDERSON VIT FLEXIBLE BOND PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
JANUS HENDERSON VIT FORTY PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
JANUS HENDERSON VIT GLOBAL RESEARCH PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
JANUS HENDERSON VIT GLOBAL TECHNOLOGY AND INNOVATION PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
JANUS HENDERSON VIT OVERSEAS PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
LORD ABBETT SERIES DEVELOPING GROWTH PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
LORD ABBETT SERIES TOTAL RETURN PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For the year ended December 31, 2020 and for the period March 13, 2019 to December 31, 2019
MFS VIT GROWTH SERIES    December 31, 2020    For the year ended December 31, 2020    For the year ended December 31, 2020 and for the period January 17, 2019 to December 31, 2019
MFS VIT II INTERNATIONAL GROWTH PORTFOLIO    December 31, 2020    For the period of September 21, 2020 to December 31, 2020    For the period of September 21, 2020 to December 31, 2020
MFS VIT III BLENDED RESEARCH SMALL CAP EQUITY PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For the year ended December 31, 2020 and for the period March 13, 2019 to December 31, 2019
MFS VIT III GLOBAL REAL ESTATE PORTFOLIO    December 31, 2020    For the period of September 21, 2020 to December 31, 2020    For the period September 21, 2020 to December 31, 2020
MFS VIT III MID CAP VALUE PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
MFS VIT MID CAP GROWTH SERIES    December 31, 2020    For the period of April 21, 2020 to December 31, 2020    For the period April 21, 2020 to December 31, 2020 and for the period January 1, 2019 to January 17, 2019
MFS VIT RESEARCH SERIES    December 31, 2020    For the year ended December 31, 2020    For the year ended December 31, 2020 and for the period March 13, 2019 to December 31, 2019
MFS VIT TOTAL RETURN BOND SERIES    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
MFS VIT VALUE SERIES    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
NEUBERGER BERMAN AMT MID CAP GROWTH PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
NEUBERGER BERMAN AMT MID CAP INTRINSIC VALUE PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020

 

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

 

NEUBERGER BERMAN AMT SUSTAINABLE EQUITY PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
PIMCO VIT GLOBAL BOND OPPORTUNITIES PORTFOLIO (UNHEDGED)    December 31, 2020    For the year ended December 31, 2020    For the year ended December 31, 2020 and for the period March 13, 2019 to December 31, 2019
PIMCO VIT HIGH YIELD PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
PIMCO VIT LOW DURATION PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
PIMCO VIT REAL RETURN PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
PIMCO VIT TOTAL RETURN PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
PIONEER REAL ESTATE SHARES VCT PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
PUTNAM VT EQUITY INCOME FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
PUTNAM VT GLOBAL ASSET ALLOCATION FUND    December 31, 2020    For the year ended December 31, 2020    For the year ended December 31, 2020 and for the period April 8, 2019 to December 31, 2019
PUTNAM VT GLOBAL EQUITY FUND    December 31, 2020    For the year ended December 31, 2020    For the year ended December 31, 2020 and for the period March 13, 2019 to December 31, 2019
PUTNAM VT GROWTH OPPORTUNITIES FUND    December 31, 2020    For the year ended December 31, 2020    For the year ended December 31, 2020 and for the period June 5, 2019 to December 31, 2019
PUTNAM VT HIGH YIELD FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
PUTNAM VT INCOME FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
PUTNAM VT INTERNATIONAL VALUE FUND    December 31, 2020    For the period of April 16, 2020 to December 31, 2020    For the period April 16, 2020 to December 31, 2020
PUTNAM VT INTERNATIONAL GROWTH FUND    N/A    N/A    For the period January 1, 2019 to November 5, 2019
PUTNAM VT SMALL CAP VALUE FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
PUTNAM VT SUSTAINABLE FUTURE FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
ROYCE CAPITAL FUND - SMALL-CAP PORTFOLIO    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
T. ROWE PRICE BLUE CHIP GROWTH PORTFOLIO CLASS II    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
VAN ECK VIP EMERGING MARKETS FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020
VAN ECK VIP GLOBAL HARD ASSETS FUND    December 31, 2020    For the year ended December 31, 2020    For each of the two years in the period ended December 31, 2020

 

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

 

VICTORY RS SMALL CAP GROWTH EQUITY VIP    December 31, 2020    For the year ended December 31, 2019    For each of the two years in the period ended December 31, 2020

 

Page 7 of 7

COLI VUL-2 SERIES ACCOUNT OF

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

STATEMENT OF ASSETS AND LIABILITIES

DECEMBER 31, 2020

 

 

   

INVESTMENT DIVISIONS

  
            ALGER SMALL    
CAP GROWTH
PORTFOLIO		       AMERICAN
CENTURY
INVESTMENTS
VP CAPITAL
  APPRECIATION  
FUND		       AMERICAN
CENTURY
  INVESTMENTS  
VP INFLATION
PROTECTION FUND		       AMERICAN
CENTURY
  INVESTMENTS VP  
INTERNATIONAL
FUND		       AMERICAN
CENTURY
  INVESTMENTS  
VP MID CAP
VALUE FUND		         AMERICAN
CENTURY
INVESTMENTS
  VP VALUE FUND  

ASSETS:

                        

Investments at fair value (1)

   $     736,857     $     485,564     $     3,523,604     $     67,321     $     1,640,791     $         1,234,435  

Receivable Dividends and Other

       -         0         -         -         -         -  

Receivable Units of the Account Sold

       0         0         0         0         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total assets

       736,857         485,564         3,523,604         67,321         1,640,791         1,234,435  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

LIABILITIES:

                        

Payable for investments purchased

       1         0         0         0         0         0  

Payable for policy-related transactions

       0         0         0         0         0         0  

Other payables

       1         0         0         0         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total liabilities

       2         0         0         0         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS

   $     736,855     $     485,564     $     3,523,604     $     67,321     $     1,640,791     $         1,234,435  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS REPRESENTED BY:

                        

Accumulation units

   $     736,855     $     485,564     $     3,523,604     $     67,321     $     1,640,791     $         1,234,435  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Contracts in payout phase

                        

ACCUMULATION UNITS OUTSTANDING

       2,058         18,984         291,551         3,400         133,123         24,143  

UNIT VALUE (ACCUMULATION)

   $     358.04     $     25.58     $     12.09     $     19.80     $     12.33     $         51.13  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

(1)   Cost of investments:

   $     429,622     $     367,800     $     3,301,929     $     44,918     $     1,515,080     $         1,166,571  

        Shares of investments:

       16,455         25,198         317,728         4,775         79,883         110,513  

 

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        AMERICAN FUNDS
IS GLOBAL SMALL
  CAPITALIZATION  
FUND		       AMERICAN
FUNDS IS
  GROWTH FUND  		       AMERICAN
FUNDS IS
GROWTH AND
  INCOME FUND  		         AMERICAN FUNDS  
IS INTERNATIONAL
FUND		       AMERICAN
  FUNDS IS NEW  
WORLD FUND		         BLACKROCK
GLOBAL
  ALLOCATION VI  
FUND

ASSETS:

                        

Investments at fair value (1)

   $     200,720     $     4,621,743     $     329     $     1,131,611     $     2,149,769     $         158,069  

Receivable Dividends and Other

       0         -         -         0         -         -  

Receivable Units of the Account Sold

       0         782         0         690         3,547         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total assets

       200,720         4,622,525         329         1,132,301         2,153,316         158,069  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

LIABILITIES:

                        

Payable for investments purchased

       0         1         0         1         0         0  

Payable for policy-related transactions

       0         0         0         0         0         0  

Other payables

       0         783         0         691         3,547         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total liabilities

       0         783         0         692         3,547         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS

   $     200,720     $     4,621,742     $     329     $     1,131,609     $     2,149,769     $         158,069  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS REPRESENTED BY:

                        

Accumulation units

   $     200,720     $     4,621,742     $     329     $     1,131,609     $     2,149,769     $         158,069  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Contracts in payout phase

                        

ACCUMULATION UNITS OUTSTANDING

       8,208         95,076         24         64,416         68,639         10,145  

UNIT VALUE (ACCUMULATION)

   $     24.45     $     48.61     $     13.64     $     17.57     $     31.32     $         15.58  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

(1)   Cost of investments:

   $     154,204     $     3,038,679     $     299     $     1,042,793     $     1,581,347     $         156,738  

        Shares of investments:

       6,360         38,783         6         48,072         68,793         8,110  

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
          BLACKROCK  
HIGH YIELD VI
FUND		       BNY MELLON
  STOCK INDEX  
FUND		       CLEARBRIDGE
VARIABLE MID
  CAP PORTFOLIO  		         CLEARBRIDGE  
VARIABLE
SMALL CAP
GROWTH
PORTFOLIO		       COLUMBIA
VARIABLE
PORTFOLIO -
SMALL CAP
  VALUE FUND  		         DAVIS
FINANCIAL
  PORTFOLIO  

ASSETS:

                        

Investments at fair value (1)

   $     29,689     $     25,247,715     $     155,460     $     488,722     $     232,379     $         36,920  

Receivable Dividends and Other

       -         -         -         -         -         -  

Receivable Units of the Account Sold

       0         1,075         538         947         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total assets

       29,689         25,248,790         155,998         489,668         232,379         36,920  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

LIABILITIES:

                        

Payable for investments purchased

       0         0         0         0         0         0  

Payable for policy-related transactions

       0         0         0         0         0         0  

Other payables

       0         1,075         538         947         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total liabilities

       0         1,075         538         947         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS

   $     29,689     $     25,247,715     $     155,460     $     488,722     $     232,379     $         36,920  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS REPRESENTED BY:

                        

Accumulation units

   $     29,689     $     25,247,715     $     155,460     $     488,722     $     232,379     $         36,920  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Contracts in payout phase

                        

ACCUMULATION UNITS OUTSTANDING

       2,639         691,938         9,244         18,459         6,515         1,426  

UNIT VALUE (ACCUMULATION)

   $     11.25     $     36.49     $     16.82     $     26.48     $     35.67     $         25.89  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

(1)   Cost of investments:

   $     29,650     $     18,855,844     $     129,701     $     408,255     $     182,527     $         36,792  

        Shares of investments:

       3,927         392,838         6,068         13,353         14,371         3,145  

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
          DAVIS VALUE  
PORTFOLIO		       DELAWARE VIP
  INTERNATIONAL  
SERIES		         DELAWARE VIP  
SMALL CAP
VALUE SERIES		         DWS CROCI®  
U.S. VIP		       DWS HIGH
  INCOME VIP  

ASSETS:

                    

Investments at fair value (1)

   $     139,287     $     183,092     $     369,035     $     142,631     $     167,841  

Receivable Dividends and Other

       -         -         -         -         -  

Receivable Units of the Account Sold

       0         0         883         1         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total assets

       139,287         183,092         369,918         142,631         167,841  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

LIABILITIES:

                    

Payable for investments purchased

       0         0         0         0         0  

Payable for policy-related transactions

       0         0         0         0         0  

Other payables

       0         0         883         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total liabilities

       0         0         883         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS

   $     139,287     $     183,092     $     369,034     $     142,631     $     167,841  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS REPRESENTED BY:

                    

Accumulation units

   $     139,287     $     183,092     $     369,034     $     142,631     $     167,841  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Contracts in payout phase

                    

ACCUMULATION UNITS OUTSTANDING

       4,360         17,984         24,871         8,459         7,627  

UNIT VALUE (ACCUMULATION)

   $     31.95     $     10.18     $     14.84     $     16.86     $     22.01  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

(1)   Cost of investments:

   $     134,554     $     182,348     $     335,382     $     153,728     $     161,033  

        Shares of investments:

       15,189         9,556         10,860         11,040         26,941  

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
          DWS SMALL CAP  
INDEX VIP		         DWS SMALL MID  
CAP VALUE VIP		         EATON VANCE  
VT FLOATING-
RATE INCOME
FUND		         FEDERATED  
HERMES
KAUFMANN
FUND II		       FIDELITY VIP
  CONTRAFUND  
PORTFOLIO		           FIDELITY VIP  
EMERGING
MARKETS
PORTFOLIO

ASSETS:

                        

Investments at fair value (1)

   $     8,593,719     $     1,321,624     $     74,129     $     261,954     $     1,948,753     $         103,846  

Receivable Dividends and Other

       0         -         -         -         0         -  

Receivable Units of the Account Sold

       1,023         0         0         1         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total assets

       8,594,742         1,321,624         74,129         261,955         1,948,753         103,846  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

LIABILITIES:

                        

Payable for investments purchased

       1         0         0         0         0         0  

Payable for policy-related transactions

       0         0         0         0         0         0  

Other payables

       1,023         0         0         0         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total liabilities

       1,024         0         0         0         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS

   $     8,593,718     $     1,321,624     $     74,129     $     261,955     $     1,948,753     $         103,846  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS REPRESENTED BY:

                        

Accumulation units

   $     8,593,718     $     1,321,624     $     74,129     $     261,955     $     1,948,753     $         103,846  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Contracts in payout phase

                        

ACCUMULATION UNITS OUTSTANDING

       264,577         49,320         6,236         5,703         34,778         7369  

UNIT VALUE (ACCUMULATION)

   $     32.48     $     26.80     $     11.89     $     45.93     $     56.03     $         14.09  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

(1)   Cost of investments:

   $     7,706,325     $     1,428,668     $     74,129     $     200,380     $     1,395,231     $         103,776  

        Shares of investments:

       494,176         110,135         8,209         10,289         41,702         7,045  

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
          FIDELITY VIP  
GROWTH
PORTFOLIO		       FIDELITY VIP
INVESTMENT
  GRADE BOND  
PORTFOLIO		         FIDELITY VIP  
MID CAP
PORTFOLIO		       GOLDMAN
  SACHS VIT MID  
CAP VALUE
FUND		       GOLDMAN
SACHS VIT
MULTI-
STRATEGY
ALTERNATIVES
PORTFOLIO		         GREAT-WEST
AGGRESSIVE
  PROFILE FUND  

ASSETS:

                        

Investments at fair value (1)

   $     48,362     $     393,994     $     519,142     $     75,557     $     8,914     $         617,757  

Receivable Dividends and Other

       -         -         0         -         -         -  

Receivable Units of the Account Sold

       0         0         0         0         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total assets

       48,362         393,994         519,142         75,557         8,914         617,757  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

LIABILITIES:

                        

Payable for investments purchased

       0         0         0         0         0         0  

Payable for policy-related transactions

       0         0         0         0         0         0  

Other payables

       0         0         0         0         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total liabilities

       0         0         0         0         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS

   $     48,362     $     393,994     $     519,142     $     75,557     $     8,914     $         617,757  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS REPRESENTED BY:

                        

Accumulation units

   $     48,362     $     393,994     $     519,142     $     75,557     $     8,914     $         617,757  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Contracts in payout phase

                        

ACCUMULATION UNITS OUTSTANDING

       1,085         15,314         7,614         3,864         768         43,284  

UNIT VALUE (ACCUMULATION)

   $     44.57     $     25.73     $     68.18     $     19.55     $     11.61     $         14.27  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

(1)   Cost of investments:

   $     43,430     $     362,799     $     416,622     $     62,740     $     8,502     $         571,355  

        Shares of investments:

       481         28,717         13,922         4,385         943         97,285  

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        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  		         GREAT-WEST
  GLOBAL BOND  
FUND

ASSETS:

                        

Investments at fair value (1)

   $     344,899     $     3,871,774     $     1,095,707     $     2,775,936     $     96,317     $         1,696,169  

Receivable Dividends and Other

       -         0         0         -         -         -  

Receivable Units of the Account Sold

       0         407         0         0         0         329  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total assets

       344,899         3,872,181         1,095,707         2,775,936         96,317         1,696,498  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

LIABILITIES:

                        

Payable for investments purchased

       0         0         0         0         0         0  

Payable for policy-related transactions

       0         0         0         0         0         0  

Other payables

       0         407         0         0         0         328  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total liabilities

       0         407         0         0         0         328  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS

   $     344,899     $     3,871,774     $     1,095,707     $     2,775,936     $     96,317     $         1,696,170  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS REPRESENTED BY:

                        

Accumulation units

   $     344,899     $     3,871,774     $     1,095,707     $     2,775,936     $     96,317     $         1,696,170  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Contracts in payout phase

                        

ACCUMULATION UNITS OUTSTANDING

       5,682         235,020         89,920         163,551         8,030         108,933  

UNIT VALUE (ACCUMULATION)

   $     60.70     $     16.47     $     12.19     $     16.97     $     11.99     $         15.57  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

(1)   Cost of investments:

   $     323,032     $     3,712,199     $     1,049,700     $     2,615,736     $     87,150     $         1,645,879  

        Shares of investments:

       28,766         256,070         132,013         240,341         8,740         201,206  

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        GREAT-WEST
GOVERNMENT
  MONEY MARKET  
FUND		         GREAT-WEST  
INFLATION-
PROTECTED
SECURITIES
FUND		       GREAT-WEST
  INTERNATIONAL  
INDEX FUND		       GREAT-WEST
  INTERNATIONAL  
VALUE FUND		       GREAT-WEST
LARGE CAP
  GROWTH FUND  		         GREAT-WEST
LARGE CAP
  VALUE FUND  
INVESTOR II
CLASS

ASSETS:

                        

Investments at fair value (1)

   $     23,576,721     $     660,044     $     3,266,900     $     5,286,269     $     179,522     $         2,403,427  

Receivable Dividends and Other

       6         -         -         -         0         -  

Receivable Units of the Account Sold

       983         0         323         0         546         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total assets

       23,577,711         660,044         3,267,224         5,286,269         180,068         2,403,427  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

LIABILITIES:

                        

Payable for investments purchased

       0         0         0         0         0         0  

Payable for policy-related transactions

       0         0         0         0         0         0  

Other payables

       984         0         323         0         546         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total liabilities

       984         0         323         0         546         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS

   $     23,576,727     $     660,044     $     3,266,900     $     5,286,269     $     179,522     $         2,403,427  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS REPRESENTED BY:

                        

Accumulation units

   $     23,576,727     $     660,044     $     3,266,900     $     5,286,269     $     179,522     $         2,403,427  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Contracts in payout phase

                        

ACCUMULATION UNITS OUTSTANDING

       1,744,168         57,941         224,701         339,634         2,956         216,382  

UNIT VALUE (ACCUMULATION)

   $     13.52     $     11.39     $     14.54     $     15.56     $     60.73     $         11.11  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

(1)   Cost of investments:

   $     23,576,721     $     658,781     $     3,153,886     $     5,058,272     $     187,807     $         2,280,371  

        Shares of investments:

       23,576,721         63,102         261,352         439,424         17,531         233,796  

 

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, 2020

 

 

   

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

ASSETS:

                        

Investments at fair value (1)

   $     1,624,754     $     675,423     $     4,742,897     $     2,376,708     $     1,756,915     $         1,423,547  

Receivable Dividends and Other

       -         -         -         0         -         -  

Receivable Units of the Account Sold

       0         1,109         5,091         5,347         754         2,424  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total assets

       1,624,754         676,532         4,747,988         2,382,055         1,757,669         1,425,971  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

LIABILITIES:

                        

Payable for investments purchased

       0         0         0         0         0         0  

Payable for policy-related transactions

       0         0         0         0         0         0  

Other payables

       0         1,109         5,091         5,347         754         2,424  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total liabilities

       0         1,109         5,091         5,347         754         2,424  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS

   $     1,624,754     $     675,423     $     4,742,897     $     2,376,708     $     1,756,915     $         1,423,547  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS REPRESENTED BY:

                        

Accumulation units

   $     1,624,754     $     675,423     $     4,742,897     $     2,376,708     $     1,756,915     $         1,423,547  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Contracts in payout phase

                        

ACCUMULATION UNITS OUTSTANDING

       114,734         46,508         316,780         152,970         109,852         86,651  

UNIT VALUE (ACCUMULATION)

   $     14.16     $     14.52     $     14.97     $     15.54     $     15.99     $         16.43  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

(1)   Cost of investments:

   $     1,512,412     $     649,845     $     4,337,227     $     2,230,003     $     1,628,070     $         1,337,505  

        Shares of investments:

       110,004         58,377         305,993         199,054         115,815         119,726  

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        GREAT-WEST
  LIFETIME 2045  
FUND		       GREAT-WEST
  LIFETIME 2050  
FUND		       GREAT-WEST
  LIFETIME 2055  
FUND		       GREAT-WEST
  MID CAP VALUE  
FUND		       GREAT-WEST
MODERATE
  PROFILE FUND  		         GREAT-WEST
MODERATELY
AGGRESSIVE
  PROFILE FUND  

ASSETS:

                        

Investments at fair value (1)

   $     1,169,931     $     415,345     $     394,324     $     105,139     $     338,360     $         82,569  

Receivable Dividends and Other

       -         -         -         -         -         -  

Receivable Units of the Account Sold

       1,440         2         0         199         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total assets

       1,171,370         415,347         394,324         105,338         338,360         82,569  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

LIABILITIES:

                        

Payable for investments purchased

       0         0         0         0         0         0  

Payable for policy-related transactions

       0         0         0         0         0         0  

Other payables

       1,440         2         0         199         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total liabilities

       1,440         2         0         199         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS

   $     1,169,931     $     415,345     $     394,324     $     105,139     $     338,360     $         82,569  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS REPRESENTED BY:

                        

Accumulation units

   $     1,169,931     $     415,345     $     394,324     $     105,139     $     338,360     $         82,569  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Contracts in payout phase

                        

ACCUMULATION UNITS OUTSTANDING

       71,070         24,981         23,964         7,557         25,583         6,070  

UNIT VALUE (ACCUMULATION)

   $     16.46     $     16.63     $     16.45     $     13.91     $     13.23     $         13.60  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

(1)   Cost of investments:

   $     1,066,550     $     382,020     $     369,697     $     99,332     $     330,115     $         80,761  

        Shares of investments:

       77,121         33,577         21,246         8,452         47,859         10,807  

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        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:

                        

Investments at fair value (1)

   $     1,401,224     $     403,237     $     301,374     $     7,744,324     $     469,019     $         6,957,530  

Receivable Dividends and Other

       -         -         -         0         0         -  

Receivable Units of the Account Sold

       20         0         85         1,653         1,167         16  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total assets

       1,401,244         403,237         301,460         7,745,976         470,187         6,957,546  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

LIABILITIES:

                        

Payable for investments purchased

       0         0         0         0         0         0  

Payable for policy-related transactions

       0         0         0         0         0         0  

Other payables

       20         0         85         1,653         1,167         16  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total liabilities

       20         0         85         1,653         1,167         16  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS

   $     1,401,224     $     403,237     $     301,374     $     7,744,324     $     469,019     $         6,957,530  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS REPRESENTED BY:

                        

Accumulation units

   $     1,401,224     $     403,237     $     301,374     $     7,744,324     $     469,019     $         6,957,530  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Contracts in payout phase

                        

ACCUMULATION UNITS OUTSTANDING

       110,580         8,703         22,273         353,307         25,363         447,403  

UNIT VALUE (ACCUMULATION)

   $     12.67     $     46.33     $     13.53     $     21.92     $     18.49     $         15.55  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

(1)   Cost of investments:

   $     1,356,310     $     377,120     $     306,009     $     7,361,985     $     431,159     $         6,689,774  

        Shares of investments:

       156,561         27,676         27,751         436,546         36,671         646,010  

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        GREAT-WEST
SMALL CAP
  VALUE FUND  		       GREAT-WEST T.
  ROWE PRICE MID  
CAP GROWTH
FUND		       GREAT-WEST
U.S.
  GOVERNMENT  
SECURITIES
FUND		       INVESCO
  OPPENHEIMER  
V.I. MAIN
STREET SMALL
CAP FUND		       INVESCO V.I.
  CORE EQUITY  
FUND		         INVESCO V.I.
  GLOBAL REAL  
ESTATE FUND

ASSETS:

                        

Investments at fair value (1)

   $     1,031,759     $     2,881,634     $     3,947,080     $     345,905     $     24,951     $         1,418,213  

Receivable Dividends and Other

       -         0         -         0         0         -  

Receivable Units of the Account Sold

       0         0         0         0         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total assets

       1,031,759         2,881,634         3,947,080         345,905         24,951         1,418,213  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

LIABILITIES:

                        

Payable for investments purchased

       0         0         0         0         0         0  

Payable for policy-related transactions

       0         0         0         0         0         0  

Other payables

       0         0         0         0         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total liabilities

       0         0         0         0         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS

   $     1,031,759     $     2,881,634     $     3,947,080     $     345,905     $     24,950     $         1,418,213  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS REPRESENTED BY:

                        

Accumulation units

   $     1,031,759     $     2,881,634     $     3,947,080     $     345,905     $     24,950     $         1,418,213  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Contracts in payout phase

                        

ACCUMULATION UNITS OUTSTANDING

       22,846         41,686         158,661         20,176         796         35,603  

UNIT VALUE (ACCUMULATION)

   $     45.16     $     69.13     $     24.88     $     17.14     $     31.34     $         39.83  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

(1)   Cost of investments:

   $     851,238     $     2,153,575     $     3,750,032     $     277,712     $     26,489     $         1,531,199  

        Shares of investments:

       35,517         77,422         305,738         12,615         820         96,543  

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        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		         JANUS
  HENDERSON VIT  
ENTERPRISE
PORTFOLIO

ASSETS:

                        

Investments at fair value (1)

   $     70,716     $     3,912,685     $     395,227     $     128,922     $     3,426,074     $         775,992  

Receivable Dividends and Other

       0         0         -         0         0         -  

Receivable Units of the Account Sold

       0         1         0         0         0         99  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total assets

       70,716         3,912,686         395,227         128,922         3,426,074         776,091  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

LIABILITIES:

                        

Payable for investments purchased

       1         0         0         0         0         0  

Payable for policy-related transactions

       0         0         0         0         0         0  

Other payables

       1         0         0         0         0         99  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total liabilities

       1         0         0         0         0         99  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS

   $     70,714     $     3,912,686     $     395,227     $     128,922     $     3,426,074     $         775,992  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS REPRESENTED BY:

                        

Accumulation units

   $     70,714     $     3,912,686     $     395,227     $     128,922     $     3,426,074     $         775,992  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Contracts in payout phase

                        

ACCUMULATION UNITS OUTSTANDING

       1,517         175,150         12,817         2,638         79,056         41,255  

UNIT VALUE (ACCUMULATION)

   $     46.61     $     22.34     $     30.84     $     48.87     $     43.34     $         18.81  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

(1)   Cost of investments:

   $     57,098     $     3,327,123     $     435,300     $     89,774     $     2,981,169     $         663,615  

        Shares of investments:

       2,099         92,020         37,391         3,527         78,616         8,237  

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        JANUS
  HENDERSON VIT  
FLEXIBLE BOND
PORTFOLIO		       JANUS
  HENDERSON VIT  
FORTY
PORTFOLIO		       JANUS
  HENDERSON VIT  
GLOBAL
RESEARCH
PORTFOLIO		       JANUS
HENDERSON VIT
GLOBAL
TECHNOLOGY
  AND INNOVATION  
PORTFOLIO		       JANUS
  HENDERSON VIT  
OVERSEAS
PORTFOLIO		           LORD ABBETT  
SERIES
DEVELOPING
GROWTH
PORTFOLIO

ASSETS:

                        

Investments at fair value (1)

   $     2,760,057     $     2,763,301     $     318,961     $     2,347,486     $     70,414     $         221,769  

Receivable Dividends and Other

       0         -         -         -         -         -  

Receivable Units of the Account Sold

       0         0         0         836         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total assets

       2,760,058         2,763,301         318,962         2,348,322         70,414         221,769  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

LIABILITIES:

                        

Payable for investments purchased

       0         0         0         0         0         0  

Payable for policy-related transactions

       0         0         0         0         0         0  

Other payables

       0         0         0         836         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total liabilities

       0         0         0         836         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS

   $     2,760,058     $     2,763,301     $     318,962     $     2,347,486     $     70,414     $         221,769  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS REPRESENTED BY:

                        

Accumulation units

   $     2,760,058     $     2,763,301     $     318,962     $     2,347,486     $     70,414     $         221,769  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Contracts in payout phase

                        

ACCUMULATION UNITS OUTSTANDING

       86,566         31,742         15,925         25,413         1,928         8,377  

UNIT VALUE (ACCUMULATION)

   $     31.88     $     87.06     $     20.03     $     92.37     $     36.52     $         26.47  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

(1)   Cost of investments:

   $     2,609,142     $     2,012,886     $     242,862     $     1,650,124     $     56,995     $         146,864  

        Shares of investments:

       216,475         48,479         5,014         115,412         1,843         4,700  

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        LORD ABBETT
  SERIES TOTAL  
RETURN
PORTFOLIO		       MFS VIT
  GROWTH SERIES  		       MFS VIT II
  INTERNATIONAL  
GROWTH
PORTFOLIO		       MFS VIT III
BLENDED
RESEARCH
  SMALL CAP  
EQUITY
PORTFOLIO		       MFS VIT III
  GLOBAL REAL  
ESTATE
PORTFOLIO		           MFS VIT III MID  
CAP VALUE
PORTFOLIO

ASSETS:

                        

Investments at fair value (1)

   $     21,014     $     17,812     $     470,317     $     15,983     $     35,294     $         5,633  

Receivable Dividends and Other

       -         -         -         -         -         -  

Receivable Units of the Account Sold

       5         0         0         0         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total assets

       21,019         17,812         470,317         15,983         35,294         5,633  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

LIABILITIES:

                        

Payable for investments purchased

       0         0         0         0         0         0  

Payable for policy-related transactions

       0         0         0         0         0         0  

Other payables

       5         0         0         0         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total liabilities

       5         0         0         0         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS

   $     21,014     $     17,812     $     470,317     $     15,983     $     35,294     $         5,633  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS REPRESENTED BY:

                        

Accumulation units

   $     21,014     $     17,812     $     470,317     $     15,983     $     35,294     $         5,633  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Contracts in payout phase

                        

ACCUMULATION UNITS OUTSTANDING

       1,785         1,009         37,685         1,175         2,610         425  

UNIT VALUE (ACCUMULATION)

   $     11.77     $     17.65     $     12.48     $     13.60     $     13.52     $         13.25  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

(1)   Cost of investments:

   $     20,962     $     15,126     $     442,612     $     15,438     $     32,574     $         5,125  

        Shares of investments:

       1,211         241         29,230         1,465         2,356         656  

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        MFS VIT MID
  CAP GROWTH  
SERIES		       MFS VIT
  RESEARCH  
SERIES		         MFS VIT TOTAL  
RETURN BOND
SERIES		         MFS VIT VALUE  
SERIES		       NEUBERGER
  BERMAN AMT  
MID CAP
GROWTH
PORTFOLIO		         NEUBERGER
  BERMAN AMT  
MID CAP
INTRINSIC
VALUE
PORTFOLIO

ASSETS:

                        

Investments at fair value (1)

   $     482,217     $     63,561     $     4,348,168     $     520,469     $     16,296     $         207,746  

Receivable Dividends and Other

       -         -         -         -         -         0  

Receivable Units of the Account Sold

       4         0         11         0         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total assets

       482,221         63,561         4,348,179         520,469         16,296         207,746  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

LIABILITIES:

                        

Payable for investments purchased

       0         0         0         0         0         0  

Payable for policy-related transactions

       0         0         0         0         0         0  

Other payables

       4         0         11         0         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total liabilities

       4         0         11         0         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS

   $     482,217     $     63,561     $     4,348,168     $     520,469     $     16,296     $         207,746  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS REPRESENTED BY:

                        

Accumulation units

   $     482,217     $     63,561     $     4,348,168     $     520,469     $     16,296     $         207,746  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Contracts in payout phase

                        

ACCUMULATION UNITS OUTSTANDING

       21,812         3,274         359,044         32,983         389         8,265  

UNIT VALUE (ACCUMULATION)

   $     22.11     $     19.41     $     12.11     $     15.78     $     41.89     $         25.14  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

(1)   Cost of investments:

   $     442,941     $     57,001     $     4,034,331     $     507,466     $     10,673     $         205,083  

        Shares of investments:

       38,150         1,934         307,944         25,513         409         13,490  

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        NEUBERGER
BERMAN AMT
  SUSTAINABLE  
EQUITY
PORTFOLIO		       PIMCO VIT
GLOBAL BOND
  OPPORTUNITIES  
PORTFOLIO
(UNHEDGED)		         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)

   $     149,704     $     317,558     $     313,151     $     8,295,890     $     499,006     $         4,802,577  

Receivable Dividends and Other

       0         -         -         -         -         0  

Receivable Units of the Account Sold

       0         0         0         0         10         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total assets

       149,704         317,558         313,151         8,295,890         499,015         4,802,577  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

LIABILITIES:

                        

Payable for investments purchased

       0         0         0         0         0         0  

Payable for policy-related transactions

       0         0         0         0         0         0  

Other payables

       0         1         0         0         10         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total liabilities

       0         1         0         0         10         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS

   $     149,704     $     317,558     $     313,151     $     8,295,890     $     499,006     $         4,802,577  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS REPRESENTED BY:

                        

Accumulation units

   $     149,704     $     317,558     $     313,151     $     8,295,890     $     499,006     $         4,802,577  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Contracts in payout phase

                        

ACCUMULATION UNITS OUTSTANDING

       3,168         27,025         11,015         510,292         23,871         208,750  

UNIT VALUE (ACCUMULATION)

   $     47.26     $     11.75     $     28.43     $     16.26     $     20.90     $         23.01  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

(1)     Cost of investments:

   $     122,324     $     317,416     $     301,267     $     8,237,631     $     456,454     $         4,568,263  

        Shares of investments:

       4,878         26,051         39,095         799,219         35,848         414,372  

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        PIONEER REAL
  ESTATE SHARES  
VCT PORTFOLIO		       PUTNAM VT
  EQUITY INCOME  
FUND		       PUTNAM VT
  GLOBAL ASSET  
ALLOCATION
FUND		       PUTNAM VT
  GLOBAL EQUITY  
FUND		       PUTNAM VT
GROWTH
  OPPORTUNITIES  
FUND		           PUTNAM VT  
HIGH YIELD
FUND

ASSETS:

                        

Investments at fair value (1)

   $     75,150     $     878,504     $     13,866     $     28,448     $     1,665,959     $         658,908  

Receivable Dividends and Other

       -         -         -         -         -         -  

Receivable Units of the Account Sold

       0         61         0         0         93         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total assets

       75,150         878,565         13,866         28,448         1,666,052         658,908  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

LIABILITIES:

                        

Payable for investments purchased

       0         0         0         0         0         0  

Payable for policy-related transactions

       0         0         0         0         0         0  

Other payables

       0         61         0         0         93         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total liabilities

       0         61         0         0         93         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS

   $     75,150     $     878,504     $     13,866     $     28,448     $     1,665,959     $         658,908  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS REPRESENTED BY:

                        

Accumulation units

   $     75,150     $     878,504     $     13,866     $     28,448     $     1,665,959     $         658,908  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Contracts in payout phase

                        

ACCUMULATION UNITS OUTSTANDING

       6,361         19,271         944         1,935         62,178         24,212  

UNIT VALUE (ACCUMULATION)

   $     11.81     $     45.59     $     14.69     $     14.70     $     26.79     $         27.21  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

(1)   Cost of investments:

   $     106,241     $     793,191     $     12,232     $     23,710     $     1,599,071     $         652,153  

        Shares of investments:

       9,849         34,064         761         1,321         111,734         104,589  

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        PUTNAM VT
  INCOME FUND  		       PUTNAM VT
  INTERNATIONAL  
VALUE FUND		       PUTNAM VT
SMALL CAP
  VALUE FUND  		       PUTNAM VT
  SUSTAINABLE  
FUTURE FUND		         ROYCE CAPITAL  
FUND -  SMALL-
CAP PORTFOLIO		           T. ROWE PRICE  
BLUE CHIP
GROWTH
PORTFOLIO
CLASS II

ASSETS:

                        

Investments at fair value (1)

   $     8,587     $     247,390     $     3,549     $     239,827     $     74,073     $         2,250,138  

Receivable Dividends and Other

       -         -         0         -         -         -  

Receivable Units of the Account Sold

       152         12         0         0         0         331  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total assets

       8,739         247,402         3,549         239,827         74,073         2,250,468  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

LIABILITIES:

                        

Payable for investments purchased

       1         0         0         0         0         0  

Payable for policy-related transactions

       0         0         0         0         0         0  

Other payables

       153         12         0         0         0         331  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total liabilities

       154         12         0         0         0         331  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS

   $     8,585     $     247,390     $     3,549     $     239,827     $     74,073     $         2,250,138  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS REPRESENTED BY:

                        

Accumulation units

   $     8,585     $     247,390     $     3,549     $     239,827     $     74,073     $         2,250,138  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Contracts in payout phase

                        

ACCUMULATION UNITS OUTSTANDING

       682         18,732         263         3,541         3,719         89,785  

UNIT VALUE (ACCUMULATION)

   $     12.59     $     13.21     $     13.49     $     67.73     $     19.92     $         25.06  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

(1)   Cost of investments:

   $     8,491     $     244,525     $     3,069     $     172,284     $     85,994     $         1,910,448  

        Shares of investments:

       749         23,902         348         10,162         10,217         46,414  

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        VAN ECK VIP
EMERGING
  MARKETS FUND  		       VAN ECK VIP
  GLOBAL HARD  
ASSETS FUND		         VICTORY RS  
SMALL CAP
GROWTH
EQUITY VIP

ASSETS:

            

Investments at fair value (1)

   $     74,105     $     1,175,142     $     14,348  

Receivable Dividends and Other

       0         -         -  

Receivable Units of the Account Sold

       0         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

Total assets

       74,105         1,175,142         14,348  
   

 

 

 

    

 

 

 

    

 

 

 

LIABILITIES:

            

Payable for investments purchased

       1         0         0  

Payable for policy-related transactions

       0         0         0  

Other payables

       1         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

Total liabilities

       2         0         0  
   

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS

   $     74,103     $     1,175,142     $     14,348  
   

 

 

 

    

 

 

 

    

 

 

 

NET ASSETS REPRESENTED BY:

            

Accumulation units

   $     74,103     $     1,175,142     $     14,348  
   

 

 

 

    

 

 

 

    

 

 

 

Contracts in payout phase

            

ACCUMULATION UNITS OUTSTANDING

       1,190         21,962         860  

UNIT VALUE (ACCUMULATION)

   $     62.27     $     53.51     $     16.68  
   

 

 

 

    

 

 

 

    

 

 

 

(1)   Cost of investments:

   $     56,704     $     944,526     $     13,587  

        Shares of investments:

       4,387         52,275         721  

 

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, 2020

 

 

    INVESTMENT DIVISIONS  
            ALGER SMALL  
CAP GROWTH
PORTFOLIO		       AMERICAN
CENTURY
  INVESTMENTS  
VP CAPITAL
APPRECIATION
FUND		       AMERICAN
CENTURY
INVESTMENTS
VP INFLATION
  PROTECTION FUND  		       AMERICAN
CENTURY
INVESTMENTS VP
  INTERNATIONAL  
FUND		       AMERICAN
CENTURY
  INVESTMENTS VP  
MID CAP VALUE
FUND		       AMERICAN
CENTURY
INVESTMENTS
  VP VALUE FUND  
                                                   

INVESTMENT INCOME:

                        

Dividends

   $         6,373     $     0     $     44,979     $     348     $     6,451     $     18,290  

EXPENSES:

                        

Mortality and expense risk

                        
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INVESTMENT INCOME (LOSS)

       6,373         0         44,979         348         6,451         18,290  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

                        

Net realized gain (loss) on sale of fund shares

       81,933         (131 )        16,468         1,956         833         (78,484 ) 

Realized gain distributions

       42,755         39,785         -         1,049         -         26,929  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net realized gain (loss) on investments

       124,689         39,653         16,468         3,005         833         (51,555 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Change in net unrealized appreciation (depreciation) on investments

       183,886         105,311         212,208         15,138         122,533         (52,636 ) 

Net realized and unrealized gain (loss) on investments

       308,574         144,964         228,676         18,143         123,365         (104,191 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $         314,947     $     144,964     $     273,655     $     18,490     $     129,816     $     (85,901 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

 

 

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, 2020

 

 

    INVESTMENT DIVISIONS  
          AMERICAN
FUNDS IS
GLOBAL SMALL
  CAPITALIZATION  
FUND		       AMERICAN
FUNDS IS
  GROWTH FUND  		       AMERICAN
FUNDS IS
GROWTH AND
  INCOME FUND  		       AMERICAN
FUNDS IS
  INTERNATIONAL  
FUND		       AMERICAN
  FUNDS IS NEW  
WORLD FUND		       BLACKROCK
GLOBAL
  ALLOCATION VI  
FUND
                          (1)                        

INVESTMENT INCOME:

                        

Dividends

   $         278     $     10,864     $     3     $     3,063     $     1,132     $     111  

EXPENSES:

                        

Mortality and expense risk

                   0         (0 )     
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INVESTMENT INCOME (LOSS)

       278         10,864         3         3,063         1,132         111  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

                        

Net realized gain (loss) on sale of fund shares

       (788 )        220,523         0         (14,865 )        37,617         58  

Realized gain distributions

       10,374         79,253         -         -         16,707         457  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net realized gain (loss) on investments

       9,586         299,776         0         (14,865 )        54,324         515  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Change in net unrealized appreciation (depreciation) on investments

       35,617         1,199,160         30         77,418         327,225         1,160  

Net realized and unrealized gain (loss) on investments

       45,203         1,498,936         30         62,553         381,549         1,675  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $         45,480     $     1,509,800     $     33     $     65,616     $     382,682     $     1,786  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

   

(1)  For the period of September, 21 2020 to December 31, 2020.

  

 

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        BLACKROCK
  HIGH YIELD VI  
FUND		       BNY MELLON
  STOCK INDEX  
FUND		       BNY MELLON
VIF
  INTERNATIONAL  
EQUITY
PORTFOLIO		       CLEARBRIDGE
VARIABLE MID
  CAP PORTFOLIO  		         CLEARBRIDGE  
VARIABLE
SMALL CAP
GROWTH
PORTFOLIO		       COLUMBIA
VARIABLE
PORTFOLIO -
SMALL CAP
  VALUE FUND  
        (1)               (2)                        

INVESTMENT INCOME:

                        

Dividends

   $     -     $     455,139     $     165     $     367     $     (0 )    $     1,143  

EXPENSES:

                        

Mortality and expense risk

                        
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INVESTMENT INCOME (LOSS)

           455,139         165         367         (0 )        1,143  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

                        

Net realized gain (loss) on sale of fund shares

       (0 )        4,297,754         (5,022 )        (1,229 )        (20,842 )        (18,139 ) 

Realized gain distributions

       -         2,040,039         -         1,935         30,747         7,874  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net realized gain (loss) on investments

       (0 )        6,337,793         (5,022 )        706         9,905         (10,265 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Change in net unrealized appreciation (depreciation) on investments

       39         (1,745,622 )        (83 )        16,532         79,274         60,487  

Net realized and unrealized gain (loss) on investments

       39         4,592,171         (5,105 )        17,238         89,178         50,222  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $     39     $     5,047,310     $     (4,940 )    $     17,605     $     89,178     $     51,365  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    (1)  For the period of September 21, 2020 to December 31, 2020.  
    (2)  For the period of January 1, 2020 to May 4, 2020.  

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        DAVIS
  FINANCIAL  
PORTFOLIO		         DAVIS VALUE  
PORTFOLIO		       DELAWARE VIP
  INTERNATIONAL  
SERIES		       DELAWARE VIP
  INTERNATIONAL  
VALUE EQUITY
SERIES		         DELAWARE VIP  
SMALL CAP
VALUE SERIES		         DWS CROCI®  
U.S. VIP
                        (1)       (2)                

INVESTMENT INCOME:

                        

Dividends

   $     496     $     882     $     -     $     4,217     $     1,493     $     3,042  

EXPENSES:

                        

Mortality and expense risk

       0                         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INVESTMENT INCOME (LOSS)

       496         882             4,217         1,493         3,042  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

                        

Net realized gain (loss) on sale of fund shares

       (8,468 )        (458 )        2,392         4,973         (31,421 )        (24,161 ) 

Realized gain distributions

       2,157         3,528         -         5,945         8,515         6,881  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net realized gain (loss) on investments

       (6,310 )        3,071         2,392         10,918         (22,906 )        (17,279 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Change in net unrealized appreciation (depreciation) on investments

       676         10,477         745         (1,393 )        33,629         (34,924 ) 

Net realized and unrealized gain (loss) on investments

       (5,634 )        13,548         3,137         9,525         10,723         (52,203 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $     (5,138 )    $     14,430     $     3,137     $     13,742     $     12,217     $     (49,161 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    (1)  For the period of December 11, 2020 to December 31, 2020.  
    (2)  For the period January 1, 2020 to December 11, 2020.  

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        DWS HIGH
  INCOME VIP  		         DWS SMALL CAP  
INDEX VIP		         DWS SMALL MID  
CAP VALUE VIP		         EATON VANCE  
VT FLOATING-
RATE INCOME
FUND		         FEDERATED  
HERMES
KAUFMANN
FUND II		       FIDELITY VIP
  CONTRAFUND  
PORTFOLIO
                                (1)                

INVESTMENT INCOME:

                        

Dividends

   $     6,297     $     73,566     $     24,031     $     4     $     (0 )    $     1,108  

EXPENSES:

                        

Mortality and expense risk

       0                      
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INVESTMENT INCOME (LOSS)

       6,297         73,566         24,031         4         (0 )        1,108  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

                        

Net realized gain (loss) on sale of fund shares

       (529 )        (439,587 )        (200,294 )        (0 )        10,441         20,255  

Realized gain distributions

       -         680,790         139,676         -         20,889         7,674  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net realized gain (loss) on investments

       (529 )        241,204         (60,618 )        (0 )        31,329         27,928  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Change in net unrealized appreciation (depreciation) on investments

       5,725         729,224         98,579         -         35,357         390,638  

Net realized and unrealized gain (loss) on investments

       5,195         970,427         37,961         (0 )        66,687         418,566  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $     11,492     $     1,043,993     $     61,993     $     4     $     66,687     $     419,674  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    (1)  For the period of September 21, 2020 to December 31, 2020.  

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
          FIDELITY VIP  
EMERGING
MARKETS
PORTFOLIO		         FIDELITY VIP  
GROWTH
PORTFOLIO		       FIDELITY VIP
INVESTMENT
  GRADE BOND  
PORTFOLIO		         FIDELITY VIP  
MID CAP
PORTFOLIO		       GOLDMAN
  SACHS VIT MID  
CAP VALUE
FUND		       GOLDMAN
SACHS VIT
MULTI-
STRATEGY
  ALTERNATIVES  
PORTFOLIO
        (1)                                        

INVESTMENT INCOME:

                        

Dividends

   $     -     $     492     $     7,491     $     2,008     $     419     $     163  

EXPENSES:

                        

Mortality and expense risk

           (0 )                 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INVESTMENT INCOME (LOSS)

           492         7,491         2,008         419         163  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

                        

Net realized gain (loss) on sale of fund shares

       (0 )        532,153         1,269         (17,108 )        (2,216 )        0  

Realized gain distributions

       -         99,438         138         -         1,063         -  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net realized gain (loss) on investments

       (0 )        631,591         1,408         (17,108 )        (1,153 )        0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Change in net unrealized appreciation (depreciation) on investments

       70         (198,477 )        21,665         85,041         6,740         418  

Net realized and unrealized gain (loss) on investments

       70         433,113         23,073         67,933         5,587         418  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $     70     $     433,605     $     30,564     $     69,941     $     6,006     $     581  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    (1)  For the period of September 21, 2020 to December 31, 2020.  

 

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, 2020

 

 

   

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  

INVESTMENT INCOME:

                        

Dividends

   $     7,841     $     6,650     $     45,383     $     20,859     $     69,618     $     1,729  

EXPENSES:

                        

Mortality and expense risk

                        
   

 

 

 

    

 

 

 

    

 

 

      

 

 

 

    

 

 

 

    

 

 

 

NET INVESTMENT INCOME (LOSS)

       7,841         6,650         45,383         20,859         69,618         1,729  
   

 

 

 

    

 

 

 

    

 

 

      

 

 

 

    

 

 

 

    

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

                        

Net realized gain (loss) on sale of fund shares

       (39,574 )        (7,473 )        36,122         (2,634 )        6,379         4,246  

Realized gain distributions

       16,024         6,835         51,027         6,055         13,787         -  
   

 

 

 

    

 

 

 

    

 

 

      

 

 

 

    

 

 

 

    

 

 

 

Net realized gain (loss) on investments

       (23,550 )        (638 )        87,149         3,421         20,166         4,246  
   

 

 

 

    

 

 

 

    

 

 

      

 

 

 

    

 

 

 

    

 

 

 

Change in net unrealized appreciation (depreciation) on investments

       82,182         27,902         43,347         57,529         115,548         8,893  

Net realized and unrealized gain (loss) on investments

       58,632         27,264         130,496         60,950         135,714         13,139  
   

 

 

 

    

 

 

 

    

 

 

      

 

 

 

    

 

 

 

    

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $     66,473     $     33,914     $     175,879     $     81,809     $     205,332     $     14,868  
   

 

 

 

    

 

 

 

    

 

 

      

 

 

 

    

 

 

 

    

 

 

 

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        GREAT-WEST
  GLOBAL BOND  
FUND		       GREAT-WEST
GOVERNMENT
  MONEY MARKET  
FUND		         GREAT-WEST  
INFLATION-
PROTECTED
SECURITIES
FUND		       GREAT-WEST
  INTERNATIONAL  
INDEX FUND		       GREAT-WEST
  INTERNATIONAL  
VALUE FUND		       GREAT-WEST
LARGE CAP
  GROWTH FUND  
                        (1)                        

INVESTMENT INCOME:

                        

Dividends

   $     19,098     $     39,781     $     -     $     46,604     $     46,481     $     3,681  

EXPENSES:

                        

Mortality and expense risk

           0                 0      
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INVESTMENT INCOME (LOSS)

       19,098         39,781             46,604         46,481         3,681  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

                        

Net realized gain (loss) on sale of fund shares

       (84,636 )        -         (0 )        2,334         (124,916 )        11,452  

Realized gain distributions

       -         -         -         13,024         58,459         39,576  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net realized gain (loss) on investments

       (84,636 )            (0 )        15,358         (66,457 )        51,028  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Change in net unrealized appreciation (depreciation) on investments

       107,874         (0 )        1,262         113,043         477,433         (8,068 ) 

Net realized and unrealized gain (loss) on investments

       23,239         (0 )        1,262         128,400         410,976         42,960  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $     42,337     $     39,781     $     1,262     $     175,005     $     457,457     $     46,640  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    (1)  For the period of September 21, 2020 to December 31, 2020.  

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        GREAT-WEST
LARGE CAP
  VALUE FUND  
INVESTOR II
CLASS		       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

INVESTMENT INCOME:

                        

Dividends

   $     24,248     $     25,765     $     11,670     $     78,029     $     42,618     $     26,962  

EXPENSES:

                        

Mortality and expense risk

                        
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INVESTMENT INCOME (LOSS)

       24,248         25,765         11,670         78,029         42,618         26,962  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

                        

Net realized gain (loss) on sale of fund shares

       (99,177 )        (3,620 )        (1,431 )        (107,401 )        109         (40,787 ) 

Realized gain distributions

       81,864         23,963         18,397         114,284         83,477         58,146  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net realized gain (loss) on investments

       (17,312 )        20,343         16,966         6,883         83,586         17,359  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Change in net unrealized appreciation (depreciation) on investments

       48,064         114,783         37,059         368,581         160,749         152,055  

Net realized and unrealized gain (loss) on investments

       30,752         135,126         54,025         375,464         244,335         169,414  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $     55,000     $     160,890     $     65,695     $     453,493     $     286,953     $     196,375  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

 

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, 2020

 

 

    

INVESTMENT DIVISIONS

          GREAT-WEST
  LIFETIME 2040  
FUND		        GREAT-WEST
  LIFETIME 2045  
FUND		        GREAT-WEST
  LIFETIME 2050  
FUND		        GREAT-WEST
  LIFETIME 2055  
FUND		         GREAT-WEST
  MID CAP VALUE  
FUND

INVESTMENT INCOME:

                           

Dividends

    $      22,547     $      16,849     $      7,116     $      5,520      $      681  

EXPENSES:

                           

Mortality and expense risk

                           
     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

      

 

 

 

NET INVESTMENT INCOME (LOSS)

         22,547          16,849          7,116          5,520           681  
     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

      

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

                           

Net realized gain (loss) on sale of fund shares

         (52,521 )         (23,882 )         (7,395 )         12,441           (4,700 ) 

Realized gain distributions

         46,330          40,287          17,937          19,656           42  
     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

      

 

 

 

Net realized gain (loss) on investments

         (6,191 )         16,405          10,542          32,097           (4,658 ) 
     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

      

 

 

 

Change in net unrealized appreciation (depreciation) on investments

         104,751          97,041          32,318          24,903           2,734  

Net realized and unrealized gain (loss) on investments

         98,560          113,445          42,861          57,000           (1,924 ) 
     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

      

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

    $      121,106     $      130,294     $      49,976     $      62,520      $      (1,243 ) 
     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

      

 

 

 

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        GREAT-WEST
MODERATE
PROFILE FUND		       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

INVESTMENT INCOME:

                        

Dividends

   $     4,448     $     1,487     $     12,911     $     10,992     $     3,246     $     52,112  

EXPENSES:

                        

Mortality and expense risk

                        
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INVESTMENT INCOME (LOSS)

       4,448         1,487         12,911         10,992         3,246         52,112  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

                        

Net realized gain (loss) on sale of fund shares

       (5,027 )        (10,144 )        (14,997 )        7,952         (32,084 )        (205,688 ) 

Realized gain distributions

       5,414         4,971         17,671         2,090         -         273,013  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net realized gain (loss) on investments

       387         (5,173 )        2,674         10,042         (32,084 )        67,325  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Change in net unrealized appreciation (depreciation) on investments

       28,315         8,941         49,343         (2,849 )        (14,934 )        358,590  

Net realized and unrealized gain (loss) on investments

       28,702         3,768         52,017         7,193         (47,018 )        425,915  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $     33,150     $     5,255     $     64,929     $     18,185     $     (43,772 )    $     478,027  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

 

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, 2020

 

 

    INVESTMENT DIVISIONS  
          GREAT-WEST
  S&P SMALL CAP  
600® INDEX
FUND		       GREAT-WEST
SHORT
  DURATION BOND  
FUND		       GREAT-WEST
SMALL CAP
  VALUE FUND  		       GREAT-WEST T.
  ROWE PRICE MID  
CAP GROWTH
FUND		       GREAT-WEST U.S.
GOVERNMENT
  SECURITIES FUND  		       INVESCO
OPPENHEIMER
V.I. MAIN
  STREET SMALL  
CAP FUND

INVESTMENT INCOME:

                        

Dividends

   $         2,899     $     136,776     $     (0 )    $     26     $     28,600     $     2,995  

EXPENSES:

                        

Mortality and expense risk

                        
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INVESTMENT INCOME (LOSS)

       2,899         136,776         (0 )        26         28,600         2,995  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

                        

Net realized gain (loss) on sale of fund shares

       15,946         34,935         (4,987 )        83,374         3,820         (165 ) 

Realized gain distributions

       20,260         20,849         2,650         76,298         3,177         6,785  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net realized gain (loss) on investments

       36,205         55,785         (2,337 )        159,671         6,996         6,620  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Change in net unrealized appreciation (depreciation) on investments

       37,589         136,896         87,234         253,316         154,398         69,224  

Net realized and unrealized gain (loss) on investments

       73,795         192,680         84,897         412,987         161,395         75,844  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $         76,694     $     329,456     $     84,897     $     413,013     $     189,995     $     78,840  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        INVESCO V.I.
  CORE EQUITY  
FUND		       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

INVESTMENT INCOME:

                        

Dividends

   $     309     $     62,070     $     202     $     81,891     $     2,585     $     0  

EXPENSES:

                        

Mortality and expense risk

           0         (0 )             
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INVESTMENT INCOME (LOSS)

       309         62,070         202         81,891         2,585         0  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

                        

Net realized gain (loss) on sale of fund shares

       (431 )        (1,264 )        1,058         4,925         (11,273 )        4,610  

Realized gain distributions

       5,330         34,669         1,536         78,896         73,180         9,380  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net realized gain (loss) on investments

       4,899         33,405         2,593         83,820         61,906         13,989  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Change in net unrealized appreciation (depreciation) on investments

       (1,117 )        (211,828 )        6,344         282,282         (20,425 )        24,515  

Net realized and unrealized gain (loss) on investments

       3,782         (178,423 )        8,937         366,102         41,481         38,504  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $     4,091     $     (116,353 )    $     9,139     $     447,993     $     44,066     $     38,504  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        JANUS
  HENDERSON VIT  
BALANCED
PORTFOLIO		       JANUS
  HENDERSON VIT  
ENTERPRISE
PORTFOLIO		       JANUS
  HENDERSON VIT  
FLEXIBLE BOND
PORTFOLIO		       JANUS
HENDERSON VIT
  FORTY PORTFOLIO  		       JANUS
  HENDERSON VIT  
GLOBAL
RESEARCH
PORTFOLIO		       JANUS
HENDERSON VIT
GLOBAL
TECHNOLOGY
AND
INNOVATION
PORTFOLIO

INVESTMENT INCOME:

                        

Dividends

   $     63,154     $     645     $     69,087     $     21,507     $     4,624     $     64  

EXPENSES:

                        

Mortality and expense risk

       (0 )                        (0 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INVESTMENT INCOME (LOSS)

       63,154         645         69,087         21,507         4,624         64  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

                        

Net realized gain (loss) on sale of fund shares

       48,227         (13,822 )        80,698         264,432         135,018         200,634  

Realized gain distributions

       22,654         40,275         -         202,519         40,769         184,402  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net realized gain (loss) on investments

       70,881         26,453         80,698         466,951         175,787         385,036  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Change in net unrealized appreciation (depreciation) on investments

       190,957         71,828         111,215         520,024         (45,828 )        451,940  

Net realized and unrealized gain (loss) on investments

       261,838         98,281         191,914         986,975         129,958         836,976  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $     324,992     $     98,926     $     261,000     $     1,008,482     $     134,582     $     837,040  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        JANUS
  HENDERSON VIT  
OVERSEAS
PORTFOLIO		         LORD ABBETT  
SERIES
DEVELOPING
GROWTH
PORTFOLIO		       LORD ABBETT
  SERIES TOTAL  
RETURN
PORTFOLIO		       MFS VIT
  GROWTH SERIES  		       MFS VIT II
  INTERNATIONAL  
GROWTH
PORTFOLIO		         MFS VIT III
BLENDED
RESEARCH
  SMALL CAP  
EQUITY
PORTFOLIO
                                        (1)          

INVESTMENT INCOME:

                        

Dividends

   $     788     $     (0 )    $     484     $     -     $     -     $         113  

EXPENSES:

                        

Mortality and expense risk

                        
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INVESTMENT INCOME (LOSS)

       788         (0 )        484                 113  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

                        

Net realized gain (loss) on sale of fund shares

       (65 )        2,401         153         204         5,862         (40 ) 

Realized gain distributions

       -         19,655         385         1,073         -         1,029  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net realized gain (loss) on investments

       (65 )        22,057         538         1,277         5,862         989  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Change in net unrealized appreciation (depreciation) on investments

       9,052         72,001         25         2,456         27,706         883  

Net realized and unrealized gain (loss) on investments

       8,986         94,058         562         3,733         33,567         1,871  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $     9,775     $     94,058     $     1,046     $     3,733     $     33,567     $         1,985  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

 

(1)  For the period of September 21, 2020 to December 31, 2020.

 

    

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        MFS VIT III
  GLOBAL REAL  
ESTATE
PORTFOLIO		         MFS VIT III MID  
CAP VALUE
PORTFOLIO		         MFS VIT MID CAP  
GROWTH SERIES		       MFS VIT
  RESEARCH  
SERIES		         MFS VIT TOTAL  
RETURN BOND
SERIES		         MFS VIT VALUE  
SERIES
        (1)               (2)                        

INVESTMENT INCOME:

                        

Dividends

   $     -     $     66     $     -     $     433     $     145,934     $     7,379  

EXPENSES:

                        

Mortality and expense risk

                        
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INVESTMENT INCOME (LOSS)

           66             433         145,934         7,379  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

                        

Net realized gain (loss) on sale of fund shares

       1,010         (32 )        818         114         (1,764 )        (2,115 ) 

Realized gain distributions

       -         224         115         2,389         -         20,680  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net realized gain (loss) on investments

       1,010         192         933         2,503         (1,764 )        18,565  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Change in net unrealized appreciation (depreciation) on investments

       2,720         477         39,275         6,452         188,308         (11,585 ) 

Net realized and unrealized gain (loss) on investments

       3,730         669         40,208         8,955         186,545         6,980  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $     3,730     $     735     $     40,208     $     9,389     $     332,479     $     14,358  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

 

(1)  For the period of September 21, 2020 to December 31, 2020.

 

 

(2)  For the period of April 21, 2020 to December 31, 2020.

 

    

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        NEUBERGER
  BERMAN AMT  
MID CAP
GROWTH
PORTFOLIO		       NEUBERGER
  BERMAN AMT  
MID CAP
INTRINSIC
VALUE
PORTFOLIO		       NEUBERGER
BERMAN AMT
  SUSTAINABLE  
EQUITY
PORTFOLIO		       PIMCO VIT
GLOBAL BOND
  OPPORTUNITIES  
PORTFOLIO
(UNHEDGED)		         PIMCO VIT HIGH  
YIELD
PORTFOLIO		           PIMCO VIT LOW  
DURATION
PORTFOLIO

INVESTMENT INCOME:

                        

Dividends

   $     (0 )    $     742     $     797     $     137     $     12,366     $         98,340  

EXPENSES:

                        

Mortality and expense risk

               0              
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INVESTMENT INCOME (LOSS)

       (0 )        742         797         137         12,366         98,340  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

                        

Net realized gain (loss) on sale of fund shares

       1,649         (865 )        (611 )        5         (34 )        (5,147 ) 

Realized gain distributions

       765         -         5,476         -         -         -  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net realized gain (loss) on investments

       2,414         (865 )        4,866         5         (34 )        (5,147 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Change in net unrealized appreciation (depreciation) on investments

       4,018         9,864         20,663         81         3,727         147,464  

Net realized and unrealized gain (loss) on investments

       6,432         8,999         25,529         86         3,693         142,317  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $     6,432     $     9,741     $     26,326     $     223     $     16,059     $         240,657  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

 

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, 2020

 

 

    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
  GLOBAL ASSET  
ALLOCATION
FUND		       PUTNAM VT
  GLOBAL EQUITY  
FUND

INVESTMENT INCOME:

                        

Dividends

   $         5,766     $     93,330     $     1,203     $     10,154     $     107     $     124  

EXPENSES:

                        

Mortality and expense risk

           (0 )                 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INVESTMENT INCOME (LOSS)

       5,766         93,330         1,203         10,154         107         124  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

                        

Net realized gain (loss) on sale of fund shares

       4,733         (1,702 )        (6,358 )        939         45         1,015  

Realized gain distributions

       -         48,083         16,613         35,371         97         263  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net realized gain (loss) on investments

       4,733         46,381         10,255         36,310         142         1,278  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Change in net unrealized appreciation (depreciation) on investments

       32,865         211,006         (19,233 )        25,440         1,322         1,608  

Net realized and unrealized gain (loss) on investments

       37,598         257,387         (8,978 )        61,750         1,464         2,886  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $         43,364     $     350,717     $     (7,775 )    $     71,904     $     1,571     $     3,010  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

 

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, 2020

 

 

    INVESTMENT DIVISIONS  
          PUTNAM VT
GROWTH
  OPPORTUNITIES  
FUND		         PUTNAM VT  
HIGH YIELD
FUND		       PUTNAM VT
  INCOME FUND  		       PUTNAM VT
  INTERNATIONAL  
VALUE FUND		       PUTNAM VT
SMALL CAP
  VALUE FUND  		       PUTNAM VT
SUSTAINABLE
  FUTURE FUND  
                                 

(1)

                

INVESTMENT INCOME:

                        

Dividends

   $         170     $     35,355     $     39,969     $     -     $     37     $     546  

EXPENSES:

                        

Mortality and expense risk

                        
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INVESTMENT INCOME (LOSS)

       170         35,355         39,969             37         546  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

                        

Net realized gain (loss) on sale of fund shares

       (402 )        (2,408 )        14,338         159         (92 )        3,074  

Realized gain distributions

       3,753         -         7,418         -         -         9,185  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net realized gain (loss) on investments

       3,352         (2,408 )        21,756         159         (92 )        12,259  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Change in net unrealized appreciation (depreciation) on investments

       66,379         (1,605 )        (34,984 )        2,865         320         68,145  

Net realized and unrealized gain (loss) on investments

       69,731         (4,013 )        (13,228 )        3,024         229         80,403  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $         69,901     $     31,342     $     26,741     $     3,024     $     265     $     80,950  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

   

(1)   For the period of April 16, 2020 to December 31, 2020

      

 

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, 2020

 

 

   

INVESTMENT DIVISIONS

  
        ROYCE CAPITAL
FUND - SMALL-
  CAP PORTFOLIO  		         T. ROWE PRICE  
BLUE CHIP
GROWTH
PORTFOLIO
CLASS II		       VAN ECK VIP
EMERGING
  MARKETS FUND  		       VAN ECK VIP
  GLOBAL HARD  
ASSETS FUND		       VICTORY RS
SMALL CAP
  GROWTH EQUITY  
VIP

INVESTMENT INCOME:

                    

Dividends

   $     543     $     -     $     1,269     $     9,573     $     -  

EXPENSES:

                    

Mortality and expense risk

                    
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INVESTMENT INCOME (LOSS)

       543             1,269         9,573      
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

                    

Net realized gain (loss) on sale of fund shares

       (33,778 )        308,780         93         (59,850 )        107  

Realized gain distributions

       1,157         69,090         1,906         -         1,979  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net realized gain (loss) on investments

       (32,621 )        377,870         1,999         (59,850 )        2,086  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Change in net unrealized appreciation (depreciation) on investments

       (5,446 )        (13,258 )        8,322         300,382         2,166  

Net realized and unrealized gain (loss) on investments

       (38,068 )        364,613         10,321         240,532         4,252  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $     (37,525 )    $     364,613     $     11,590     $     250,105     $     4,252  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

 

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, 2020 AND 2019

 

 

    INVESTMENT DIVISIONS  
        ALGER SMALL CAP GROWTH
PORTFOLIO		       AMERICAN CENTURY INVESTMENTS VP
CAPITAL APPRECIATION FUND		       AMERICAN CENTURY INVESTMENTS VP
INFLATION PROTECTION FUND
        2020       2019       2020       2019       2020       2019

INCREASE (DECREASE) IN NET ASSETS:

                        

OPERATIONS:

                        

Net investment income (loss)

   $     6,373     $     -     $     0     $     52,133     $     44,979     $     16,110  

Net realized gain (loss) on investments

       124,689         26,213         39,653             16,468         (1,846 ) 

Change in net unrealized appreciation (depreciation) on investments

       183,886         103,475         105,311         27,762         212,208         42,470  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Increase (decrease) in net assets resulting from operations

       314,947         129,688         144,964         79,895         273,655         56,734  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

CONTRACT TRANSACTIONS:

                        

Proceeds from units sold

       -         -         12         89,627         12         -  

Transfers for contract benefits and terminations

       (5,063 )        (5,332 )        (5,202 )        (16,548 )        (30,507 )        (8,005 ) 

Net transfers

       (108,621 )        (44,080 )        (781 )        20,162         2,526,711         61,317  

Contract maintenance charges

           (168 )            (240 )            (326 ) 

Other, net

       -         -         -         -         -         -  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Increase (decrease) in net assets resulting from contract transactions

       (113,683 )        (49,580 )        (5,971 )        93,001         2,496,216         52,986  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total increase (decrease) in net assets

       201,264         80,108         138,993         172,896         2,769,871         109,720  

NET ASSETS:

                        

Beginning of period

       535,591         455,483         346,571         173,675         753,733         644,013  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

End of period

   $     736,855     $     535,591     $     485,564     $     346,571     $     3,523,604     $     753,733  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

CHANGES IN UNITS OUTSTANDING:

                        

Units issued

       457         116         54         7,397         269,880         8,969  

Units redeemed

       (899 )        (366 )        (373 )        (1,208 )        (46,653 )        (4,220 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net increase (decrease)

       (442 )        (250 )        (319 )        6,189         223,227         4,749  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

 

 

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, 2020 AND 2019

 

 

    INVESTMENT DIVISIONS  
          AMERICAN CENTURY INVESTMENTS VP
INTERNATIONAL FUND		         AMERICAN CENTURY INVESTMENTS VP
MID CAP VALUE FUND		         AMERICAN CENTURY INVESTMENTS VP
VALUE FUND		   AMERICAN
CENTURY
INVESTMENTS
VP ULTRA
FUND		   AMERICAN
CENTURY
INVESTMENTS
VP INCOME &
GROWTH FUND
          2020       2019         2020       2019         2020       2019   2019   2019
                                    (1)                     (2)   (3)

INCREASE (DECREASE) IN NET ASSETS:

                            

OPERATIONS:

                            

Net investment income (loss)

   $         348     $     504     $         6,451     $     392     $         18,290     $     23,068      

Net realized gain (loss) on investments

       3,005         3,264         833         54         (51,555 )        86,208       5,446       (1 ) 

Change in net unrealized appreciation (depreciation) on investments

       15,138         10,313         122,533         3,178         (52,636 )        139,548         2  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

  

 

 

 

  

 

 

 

Increase (decrease) in net assets resulting from operations

       18,490         14,081         129,816         3,624         (85,901 )        248,824       5,446       1  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

  

 

 

 

  

 

 

 

CONTRACT TRANSACTIONS:

                            

Proceeds from units sold

       -         -         13,982         21,502         523,211         102,379      

Transfers for contract benefits and terminations

       (915 )        (1,135 )        (1,181 )        (1,003 )        (19,197 )        (20,989 )        (22 ) 

Net transfers

       (9,488 )        (5,226 )        1,460,875         13,205         (385,489 )        73,532       (5,446 )   

Contract maintenance charges

           (22 )            (30 )        (47 )        (473 )     

Other, net

       -         -         -         -         -         (45,712 )     
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

  

 

 

 

  

 

 

 

Increase (decrease) in net assets resulting from contract transactions

       (10,403 )        (6,383 )        1,473,676         33,674         118,479         108,737       (5,446 )   
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

  

 

 

 

  

 

 

 

Total increase (decrease) in net assets

       8,088         7,698         1,603,493         37,298         32,577         357,561       -       (21 ) 

NET ASSETS:

                            

Beginning of period

       59,233         51,535         37,298         -         1,201,858         844,297         21  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

  

 

 

 

  

 

 

 

End of period

   $         67,321     $     59,233     $         1,640,791     $     37,298     $         1,234,435     $     1,201,858       -       -  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

  

 

 

 

  

 

 

 

CHANGES IN UNITS OUTSTANDING:

                            

Units issued

       801         58         132,386         3,563         15,404         5,616       20,333    

Units redeemed

       (1,167 )        (500 )        (2,325 )        (500 )        (14,996 )        (3,062 )      (20,333 )      (1 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

  

 

 

 

  

 

 

 

Net increase (decrease)

       (366 )        (442 )        130,060         3,063         408         2,554       -       (1 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

  

 

 

 

  

 

 

 

    (1)   For the period March 13, 2019 to December 31, 2019.          
   

(2)   For the period November 26, 2019 to December 5, 2019.

(3)   For the period January 1, 2019 to November 25, 2019.

          

 

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, 2020 AND 2019

 

 

    INVESTMENT DIVISIONS  
          AMERICAN FUNDS IS GLOBAL SMALL
CAPITALIZATION FUND		         AMERICAN FUNDS IS GROWTH FUND         AMERICAN FUNDS
IS GROWTH AND
INCOME FUND
          2020       2019         2020       2019         2020
                                              (1)

INCREASE (DECREASE) IN NET ASSETS:

                    

OPERATIONS:

                    

Net investment income (loss)

   $         278     $     281     $         10,864     $     25,252     $         3  

Net realized gain (loss) on investments

       9,586         7,926         299,776         347,342         0  

Change in net unrealized appreciation (depreciation) on investments

       35,617         34,419         1,199,160         440,374         30  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Increase (decrease) in net assets resulting from operations

       45,480         42,626         1,509,800         812,968         33  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

CONTRACT TRANSACTIONS:

                    

Proceeds from units sold

       9,816         19,237         114,798         275,635         12  

Transfers for contract benefits and terminations

       (2,865 )        (3,791 )        (42,041 )        (483,843 )        (5 ) 

Net transfers

       (28,687 )        (6,638 )        (612,258 )        659,721         289  

Contract maintenance charges

           (92 )            (1,336 )     

Other, net

       -         -         11,395         (17,243 )        -  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Increase (decrease) in net assets resulting from contract transactions

       (21,736 )        8,716         (528,105 )        432,934         296  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total increase (decrease) in net assets

       23,744         51,342         981,695         1,245,902         329  

NET ASSETS:

                    

Beginning of period

       176,976         125,634         3,640,047         2,394,145      
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

End of period

   $         200,720     $     176,976     $         4,621,742     $     3,640,047     $         329  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

CHANGES IN UNITS OUTSTANDING:

                    

Units issued

       1,313         3,461         21,551         39,326         25  

Units redeemed

       (2,493 )        (2,838 )        (40,354 )        (23,398 )        (1 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net increase (decrease)

       (1,180 )        623         (18,803 )        15,928         24  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

   

(1)  For the period of September 21, 2020 to December 31, 2020.

  

 

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, 2020 AND 2019

 

 

    INVESTMENT DIVISIONS  
        AMERICAN FUNDS IS
INTERNATIONAL FUND		       AMERICAN FUNDS IS NEW WORLD
FUND		       BLACKROCK GLOBAL ALLOCATION VI
FUND
        2020       2019       2020       2019       2020       2019

INCREASE (DECREASE) IN NET ASSETS:

                        

OPERATIONS:

                        

Net investment income (loss)

   $     3,063     $     7,764     $     1,132     $     14,618     $     111     $     63  

Net realized gain (loss) on investments

       (14,865 )        85,333         54,324         56,158         515         (1,007 ) 

Change in net unrealized appreciation (depreciation) on investments

       77,418         110,512         327,225         337,019         1,160         2,745  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Increase (decrease) in net assets resulting from operations

       65,616         203,609         382,682         407,795         1,786         1,801  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

CONTRACT TRANSACTIONS:

                        

Proceeds from units sold

       585,352         118,771         137,139         54,426         153,988         -  

Transfers for contract benefits and terminations

       (5,252 )        (139,137 )        (21,103 )        (45,601 )        (203 )        (202 ) 

Net transfers

       (19,253 )        (1,146,198 )        15,875         (348,676 )        (2,643 )        (17,343 ) 

Contract maintenance charges

           (421 )            (518 )        (11 )        (9 ) 

Other, net

       3,811         (4,130 )        1,905         (1,944 )        -         -  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Increase (decrease) in net assets resulting from contract transactions

       564,658         (1,171,115 )        133,816         (342,313 )        151,132         (17,554 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total increase (decrease) in net assets

       630,274         (967,506 )        516,498         65,482         152,918         (15,753 ) 

NET ASSETS:

                        

Beginning of period

       501,335         1,468,841         1,633,271         1,567,789         5,151         20,904  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

End of period

   $     1,131,609     $     501,335     $     2,149,769     $     1,633,271     $     158,069     $     5,151  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

CHANGES IN UNITS OUTSTANDING:

                        

Units issued

       41,306         15,342         15,271         4,633         9,798         1,309  

Units redeemed

       (9,416 )        (99,917 )        (11,078 )        (20,079 )        (53 )        (2,825 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net increase (decrease)

       31,890         (84,575 )        4,193         (15,446 )        9,745         (1,516 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

 

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, 2020 AND 2019

 

 

   

INVESTMENT DIVISIONS

  
           BLACKROCK  
HIGH YIELD VI
FUND		        BNY MELLON STOCK INDEX FUND            BNY MELLON  
VIF
INTERNATIONAL
EQUITY
PORTFOLIO
         2020        2020        2019          2020          2019
         (1)                            (2)           

INCREASE (DECREASE) IN NET ASSETS:

                         

OPERATIONS:

                         

Net investment income (loss)

   $      $      455,139     $      484,400     $          165     $          268  

Net realized gain (loss) on investments

        (0 )         6,337,793          2,728,315          (5,022 )         (2,301 ) 

Change in net unrealized appreciation (depreciation) on investments

        39          (1,745,622 )         4,306,226          (83 )         7,277  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from operations

        39          5,047,310          7,518,941          (4,940 )         5,244  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CONTRACT TRANSACTIONS:

                         

Proceeds from units sold

        30,807          2,527,221          500,836          465          4,610  

Transfers for contract benefits and terminations

        (1 )         (1,385,900 )         (1,646,026 )         (7,993 )         (489 ) 

Net transfers

        (1,156 )         (11,512,107 )         (669,838 )         (17,412 )         (31,516 ) 

Contract maintenance charges

             (120 )         (9,869 )         -          (10 ) 

Other, net

        -          12,041          (121,779 )         -          -  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from contract transactions

        29,650          (10,358,864 )         (1,946,676 )         (24,940 )         (27,405 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Total increase (decrease) in net assets

        29,689          (5,311,554 )         5,572,265          (29,880 )         (22,161 ) 

NET ASSETS:

                         

Beginning of period

             30,559,269          24,987,004          29,880          52,041  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

End of period

   $      29,689     $      25,247,715     $      30,559,269     $          -     $          29,880  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CHANGES IN UNITS OUTSTANDING:

                         

Units issued

        2,640          200,533          54,422          -          381  

Units redeemed

        (1 )         (496,918 )         (126,204 )         (1,237 )         (1,730 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Net increase (decrease)

        2,639          (296,385 )         (71,782 )         (1,237 )         (1,349 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

    (1) For the period of September 21, 2020 to December 31, 2020.  
    (2) For the period of January 1, 2020 to May 4, 2020.  

 

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, 2020 AND 2019

 

 

    INVESTMENT DIVISIONS  
           CLEARBRIDGE VARIABLE MID  
CAP PORTFOLIO		        CLEARBRIDGE VARIABLE SMALL  
CAP GROWTH PORTFOLIO		          COLUMBIA VARIABLE PORTFOLIO -  
SMALL CAP VALUE FUND
         2020        2019        2020        2019        2020        2019

INCREASE (DECREASE) IN NET ASSETS:

                              

OPERATIONS:

                              

Net investment income (loss)

   $      367     $      696     $      (0 )    $      -     $      1,143     $      742  

Net realized gain (loss) on investments

        706          4,020          9,905          12,693          (10,265 )         9,158  

Change in net unrealized appreciation (depreciation) on investments

        16,532          16,926          79,274          3,276          60,487          8,109  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from operations

        17,605          21,642          89,178          15,969          51,365          18,009  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CONTRACT TRANSACTIONS:

                              

Proceeds from units sold

        40,880          37,578          84,583          32,594          2,500          2,499  

Transfers for contract benefits and terminations

        (4,033 )         (4,099 )         (30,153 )         (22,917 )         (2,010 )         (1,681 ) 

Net transfers

        (19,628 )         18,036          133,617          133,412          39,119          66,221  

Contract maintenance charges

             (65 )              (152 )              (17 ) 

Other, net

        -          -          -          -          -          -  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from contract transactions

        17,219          51,450          188,047          142,937          39,609          67,022  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Total increase (decrease) in net assets

        34,824          73,092          277,225          158,906          90,974          85,031  

NET ASSETS:

                              

Beginning of period

        120,636          47,544          211,497          52,591          141,405          56,374  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

End of period

   $      155,460     $      120,636     $      488,722     $      211,497     $      232,379     $      141,405  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CHANGES IN UNITS OUTSTANDING:

                              

Units issued

        4,938          6,126          20,184          1,402          3,856          2,528  

Units redeemed

        (3,969 )         (2,187 )         (13,169 )         (1,305 )         (1,654 )         (301 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Net increase (decrease)

        969          3,939          7,015          97          2,202          2,227  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

 

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, 2020 AND 2019

 

 

         INVESTMENT DIVISIONS
           DAVIS FINANCIAL PORTFOLIO            DAVIS VALUE PORTFOLIO          DELAWARE VIP
  INTERNATIONAL  
SERIES
         2020        2019        2020        2019        2020
                                             (1)

INCREASE (DECREASE) IN NET ASSETS:

                         

OPERATIONS:

                         

Net investment income (loss)

   $      496     $      836     $      882     $      1,894     $   

Net realized gain (loss) on investments

        (6,310 )         2,239          3,071          5,544          2,392  

Change in net unrealized appreciation (depreciation) on investments

        676          8,917          10,477          23,003          745  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from operations

        (5,138 )         11,992          14,430          30,441          3,137  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CONTRACT TRANSACTIONS:

                         

Proceeds from units sold

        3,404          3,748          -          -          101,582  

Transfers for contract benefits and terminations

        (23,228 )         (878 )         (1,482 )         (2,038 )         -  

Net transfers

        4,019          2,285          (476 )         -          78,373  

Contract maintenance charges

             (68 )              (9 )      

Other, net

        -          -          -          -          -  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from contract transactions

        (15,805 )         5,087          (1,957 )         (2,047 )         179,955  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Total increase (decrease) in net assets

        (20,943 )         17,079          12,473          28,394          183,092  

NET ASSETS:

                         

Beginning of period

        57,863          40,784          126,814          98,420       
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

End of period

   $      36,920     $      57,863     $      139,287     $      126,814     $      183,092  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CHANGES IN UNITS OUTSTANDING:

                         

Units issued

        421          653          8          11          42,677  

Units redeemed

        (1,095 )         (416 )         (83 )         (91 )         (24,693 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Net increase (decrease)

        (674 )         237          (75 )         (80 )         17,984  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

 

(1)   For the period of December 11, 2020 to December 31, 2020.

 

     

 

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, 2020 AND 2019

 

 

         INVESTMENT DIVISIONS
           DELAWARE VIP INTERNATIONAL  
VALUE EQUITY SERIES		          DELAWARE VIP SMALL CAP VALUE  
SERIES		      DWS CROCI® U.S. VIP  
         2020        2019        2020        2019        2020        2019
         (1)                                             

INCREASE (DECREASE) IN NET ASSETS:

                              

OPERATIONS:

                              

Net investment income (loss)

   $      4,217     $      2     $      1,493     $      833     $      3,042     $      4,422  

Net realized gain (loss) on investments

        10,918          2,106          (22,906 )         7,978          (17,279 )         24,217  

Change in net unrealized appreciation (depreciation) on investments

        (1,393 )         1,409          33,629          7,434          (34,924 )         39,510  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from operations

        13,742          3,517          12,217          16,245          (49,161 )         68,149  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CONTRACT TRANSACTIONS:

                              

Proceeds from units sold

        6,957          11,748          187,909          82,831          -          -  

Transfers for contract benefits and terminations

        (2,473 )         (1,077 )         (4,190 )         (4,575 )         (1,810 )         (2,957 ) 

Net transfers

        (58,598 )         26,119          30,877          16,327          (91,172 )         (61,798 ) 

Contract maintenance charges

             (13 )         (166 )         (162 )              (99 ) 

Other, net

        -          -          -          -          -          -  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from contract transactions

        (54,114 )         36,777          214,432          94,421          (92,982 )         (64,854 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Total increase (decrease) in net assets

        (40,372 )         40,294          226,648          110,666          (142,144 )         3,295  

NET ASSETS:

                              

Beginning of period

        40,372          78          142,386          31,720          284,775          281,480  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

End of period

   $      (0 )    $      40,372     $      369,034     $      142,386     $      142,631     $      284,775  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CHANGES IN UNITS OUTSTANDING:

                              

Units issued

        22,470          5,310          23,355          7,311          1,112          10,112  

Units redeemed

        (25,693 )         (2,093 )         (7,872 )         (595 )         (7,489 )         (14,773 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Net increase (decrease)

        (3,224 )         3,217          15,483          6,716          (6,377 )         (4,661 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

 

(1)   For the period January 1, 2020 to December 11, 2020

 

          

 

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, 2020 AND 2019

 

 

    INVESTMENT DIVISIONS  
            DWS HIGH INCOME VIP             DWS SMALL CAP INDEX VIP           DWS SMALL MID CAP VALUE VIP           EATON VANCE VT  
FLOATING-RATE
INCOME FUND
          2020       2019         2020         2019         2020         2019       2020
                                                                  (1)

INCREASE (DECREASE) IN NET ASSETS:

                            

OPERATIONS:

                            

Net investment income (loss)

   $         6,297     $     5,506     $         73,566     $         71,549     $         24,031     $         11,703     $         4  

Net realized gain (loss) on investments

       (529 )        (175 )        241,204         626,580         (60,618 )        74,493         (0 ) 

Change in net unrealized appreciation (depreciation) on investments

       5,725         6,661         729,224         775,876         98,579         226,805      
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Increase (decrease) in net assets resulting from operations

       11,492         11,992         1,043,993         1,474,005         61,993         313,001         4  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

CONTRACT TRANSACTIONS:

                            

Proceeds from units sold

       14,890         29,501         371,779         39,450         7,138         6,625         76,999  

Transfers for contract benefits and terminations

       (2,213 )        (2,356 )        (220,814 )        (180,338 )        (15,500 )        (20,064 )        -  

Net transfers

       24,319         15,249         118,382         39,913         (499,966 )        (87,710 )        (2,874 ) 

Contract maintenance charges

           (63 )            (5,589 )            (287 )     

Other, net

       -         -         -         -         -         -         -  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Increase (decrease) in net assets resulting from contract transactions

       36,997         42,331         269,347         (106,564 )        (508,328 )        (101,436 )        74,125  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total increase (decrease) in net assets

       48,489         54,323         1,313,340         1,367,441         (446,335 )        211,565         74,129  

NET ASSETS:

                            

Beginning of period

       119,352         65,029         7,280,378         5,912,937         1,767,959         1,556,394      
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

End of period

   $         167,841     $     119,352     $         8,593,718     $         7,280,378     $         1,321,624     $         1,767,959     $         74,129  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

CHANGES IN UNITS OUTSTANDING:

                            

Units issued

       2,796         2,278         55,793         16,715         19,641         4,089         6,237  

Units redeemed

       (930 )        (148 )        (58,909 )        (21,273 )        (35,771 )        (8,652 )        (1 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net increase (decrease)

       1,866         2,130         (3,116 )        (4,558 )        (16,130 )        (4,563 )        6,236  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

   

(1)   For the period of September 21, 2020 to December 31, 2020.

      

 

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, 2020 AND 2019

 

 

    INVESTMENT DIVISIONS  
          FEDERATED HERMES KAUFMANN FUND II           FIDELITY VIP CONTRAFUND PORTFOLIO         FIDELITY VIP
  EMERGING MARKETS  
PORTFOLIO
        2020       2019       2020       2019       2020
                                        (1)

INCREASE (DECREASE) IN NET ASSETS:

                    

OPERATIONS:

                    

Net investment income (loss)

   $     (0 )    $     $     1,108     $     3,652     $  

Net realized gain (loss) on investments

       31,329         30,281         27,928         156,229         (0 ) 

Change in net unrealized appreciation (depreciation) on investments

       35,357         21,824         390,638         366,533         70  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Increase (decrease) in net assets resulting from operations

       66,687         52,105         419,674         526,414         70  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

CONTRACT TRANSACTIONS:

                    

Proceeds from units sold

       -         -         2,820         227,067         107,795  

Transfers for contract benefits and terminations

       (2,926 )        (10,414 )        (18,591 )        (69,969 )        (1 ) 

Net transfers

       (9,150 )        21,527         209,283         (2,007,215 )        (4,019 ) 

Contract maintenance charges

           (212 )            (978 )     

Other, net

       -         -         -         -         -  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Increase (decrease) in net assets resulting from contract transactions

       (12,076 )        10,901         193,512         (1,851,095 )        103,776  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total increase (decrease) in net assets

       54,611         63,006         613,186         (1,324,681 )        103,846  

NET ASSETS:

                    

Beginning of period

       207,344         144,338         1,335,567         2,660,248      
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

End of period

   $     261,955     $     207,344     $     1,948,753     $     1,335,567     $     103,846  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

CHANGES IN UNITS OUTSTANDING:

                    

Units issued

       1,161         2,517         6,312         12,164         7,370  

Units redeemed

       (1,272 )        (2,119 )        (2,576 )        (62,289 )        (1 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net increase (decrease)

       (111 )        398         3,737         (50,125 )        7,369  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

 

(1)   For the period of September 21, 2020 to December 31, 2020.

  

 

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, 2020 AND 2019

 

 

    INVESTMENT DIVISIONS  
           FIDELITY VIP GROWTH PORTFOLIO            FIDELITY VIP INVESTMENT GRADE BOND  
PORTFOLIO		          FIDELITY VIP MID CAP PORTFOLIO  
         2020        2019        2020        2019        2020        2019
                                                       

INCREASE (DECREASE) IN NET ASSETS:

                              

OPERATIONS:

                              

Net investment income (loss)

   $      492     $      466     $      7,491     $      7,712     $      2,008     $      5,882  

Net realized gain (loss) on investments

        631,591          70,152          1,408          629          (17,108 )         28,202  

Change in net unrealized appreciation (depreciation) on investments

        (198,477 )         196,206          21,665          18,510          85,041          141,092  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from operations

        433,605          266,824          30,564          26,851          69,941          175,176  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CONTRACT TRANSACTIONS:

                              

Proceeds from units sold

        -               -          -          28,948          143,448  

Transfers for contract benefits and terminations

        (15,152 )         (13,547 )         (5,071 )         (5,564 )         (7,792 )         (194,889 ) 

Net transfers

        (1,479,106 )         117,218          (1,011 )         67,862          (330,900 )         (249,445 ) 

Contract maintenance charges

             (153 )              (97 )              (473 ) 

Other, net

        -          -          -          -          -          -  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from contract transactions

        (1,494,257 )         103,518          (6,082 )         62,201          (309,744 )         (301,359 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Total increase (decrease) in net assets

        (1,060,652 )         370,342          24,481          89,052          (239,803 )         (126,183 ) 

NET ASSETS:

                              

Beginning of period

        1,109,014          738,672          369,513          280,461          758,945          885,128  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

End of period

   $      48,362     $      1,109,014     $      393,994     $      369,513     $      519,142     $      758,945  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CHANGES IN UNITS OUTSTANDING:

                              

Units issued

        5,269          6,102          2,747          3,381          1,373          8,228  

Units redeemed

        (39,883 )         (2,260 )         (3,112 )         (722 )         (6,879 )         (13,955 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Net increase (decrease)

        (34,615 )         3,842          (364 )         2,659          (5,506 )         (5,727 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

 

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, 2020 AND 2019

 

 

    INVESTMENT DIVISIONS  
             GOLDMAN SACHS VIT MID CAP VALUE    
FUND		          GOLDMAN SACHS VIT MULTI-
    STRATEGY ALTERNATIVES    
PORTFOLIO		              GREAT-WEST    
AGGRESSIVE
PROFILE FUND		  
         2020          2019          2020          2019          2020          2019  
                                          (1)                        

INCREASE (DECREASE) IN NET ASSETS:

                              

OPERATIONS:

                              

Net investment income (loss)

   $      419     $      770     $      163     $      149     $      7,841     $      12,402  

Net realized gain (loss) on investments

        (1,153 )         2,782          0          170          (23,550 )         (56,509 ) 

Change in net unrealized appreciation (depreciation) on investments

        6,740          19,154          418          (6 )         82,182          250,448  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Increase (decrease) in net assets resulting from operations

        6,006          22,706          581          313          66,473          206,341  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

CONTRACT TRANSACTIONS:

                              

Proceeds from units sold

        -          -          -          -          16,775          55,131  

Transfers for contract benefits and terminations

        (875 )         (1,499 )         (206 )         (153 )         (38,637 )         (653,145 ) 

Net transfers

        (32,471 )         36,884          3,059          5,341          7,443          (125,513 ) 

Contract maintenance charges

             (31 )         (11 )         (11 )              (694 ) 

Other, net

        -          -          -          -          -          -  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Increase (decrease) in net assets resulting from contract transactions

        (33,346 )         35,354          2,843          5,177          (14,420 )         (724,221 ) 
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Total increase (decrease) in net assets

        (27,340 )         58,060          3,424          5,490          52,054          (517,880 ) 

NET ASSETS:

                              

Beginning of period

        102,897          44,837          5,490          -          565,703          1,083,583  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

End of period

   $      75,557     $      102,897     $      8,914     $      5,490     $      617,757     $      565,703  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

CHANGES IN UNITS OUTSTANDING:

                              

Units issued

        33          3,278          300          1,359          9,375          14,391  

Units redeemed

        (1,874 )         (843 )         (37 )         (854 )         (10,482 )         (77,223 ) 
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Net increase (decrease)

        (1,841 )         2,435          263          505          (1,106 )         (62,832 ) 
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  
       (1)  For the period March 13, 2019 to December 31, 2019.       

 

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, 2020 AND 2019

 

 

   

INVESTMENT DIVISIONS

  
            GREAT-WEST ARIEL MID CAP VALUE FUND                    GREAT-WEST BOND INDEX FUND                 GREAT-WEST CONSERVATIVE PROFILE    
FUND		  
        2020         2019         2020         2019         2020         2019  

INCREASE (DECREASE) IN NET ASSETS:

                        

OPERATIONS:

                        

Net investment income (loss)

   $     6,650     $     3,170     $     45,383     $     24,856     $     20,859     $     14,851  

Net realized gain (loss) on investments

       (638 )        24,442         87,149         2,120         3,421         60,624  

Change in net unrealized appreciation (depreciation) on investments

       27,902         22,846         43,347         150,433         57,529         14,119  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Increase (decrease) in net assets resulting from operations

       33,914         50,458         175,879         177,409         81,809         89,594  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

CONTRACT TRANSACTIONS:

                        

Proceeds from units sold

       12         -         239,340         48,460         63,855         16,053  

Transfers for contract benefits and terminations

       (3,011 )        (10,306 )        (104,084 )        (63,700 )        (26,814 )        (80,778 ) 

Net transfers

       51,799         25,406         1,182,365         240,916         (116,187 )        278,850  

Contract maintenance charges

           (187 )            (804 )        (1,296 )        (1,577 ) 

Other, net

       -         -         -         -         6,988         (7,058 ) 
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Increase (decrease) in net assets resulting from contract transactions

       48,800         14,913         1,317,621         224,872         (73,453 )        205,490  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total increase (decrease) in net assets

       82,715         65,371         1,493,499         402,281         8,356         295,084  

NET ASSETS:

                        

Beginning of period

       262,184         196,813         2,378,275         1,975,994         1,087,351         792,267  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

End of period

   $     344,899     $     262,184     $     3,871,774     $     2,378,275     $     1,095,707     $     1,087,351  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

CHANGES IN UNITS OUTSTANDING:

                        

Units issued

       1,946         1,480         106,856         24,244         13,905         95,149  

Units redeemed

       (975 )        (1,165 )        (26,557 )        (8,473 )        (20,545 )        (77,061 ) 
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net increase (decrease)

       970         315         80,299         15,771         (6,640 )        18,088  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

 

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, 2020 AND 2019

 

 

    INVESTMENT DIVISIONS  
              GREAT-WEST CORE BOND FUND                  GREAT-WEST EMERGING MARKETS
EQUITY FUND		                  GREAT-WEST GLOBAL BOND FUND      
          2020           2019           2020           2019           2020           2019  

INCREASE (DECREASE) IN NET ASSETS:

                        

OPERATIONS:

                        

Net investment income (loss)

   $         69,618     $         60,612     $         1,729     $         25     $         19,098     $         106,348  

Net realized gain (loss) on investments

       20,166         (82 )        4,246         273         (84,636 )        (365,159 ) 

Change in net unrealized appreciation (depreciation) on investments

       115,548         158,080         8,893         241         107,874         415,856  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Increase (decrease) in net assets resulting from operations

       205,332         218,610         14,868         539         42,337         157,045  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

CONTRACT TRANSACTIONS:

                        

Proceeds from units sold

       40,177         16,462         64,413         -         102,742         135,205  

Transfers for contract benefits and terminations

       (25,291 )        (29,468 )        (119 )        (86 )        (26,713 )        (47,755 ) 

Net transfers

       15,080         (59,309 )        14,508         115         (1,117,830 )        (2,044,453 ) 

Contract maintenance charges

           (118 )            (6 )        (282 )        (1,117 ) 

Other, net

       -         -         -         -         -         (275,838 ) 
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Increase (decrease) in net assets resulting from contract transactions

       29,967         (72,433 )        78,802         23         (1,042,082 )        (2,233,958 ) 
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total increase (decrease) in net assets

       235,298         146,177         93,670         562         (999,745 )        (2,076,913 ) 

NET ASSETS:

                        

Beginning of period

       2,540,638         2,394,461         2,647         2,085         2,695,915         4,772,828  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

End of period

   $         2,775,936     $         2,540,638     $         96,317     $         2,647     $         1,696,170     $         2,695,915  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

CHANGES IN UNITS OUTSTANDING:

                        

Units issued

       9,190         4,838         11,305         558         30,753         32,295  

Units redeemed

       (7,330 )        (9,543 )        (3,539 )        (547 )        (104,197 )        (185,947 ) 
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net increase (decrease)

       1,860         (4,705 )        7,766         11         (73,444 )        (153,652 ) 
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

 

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, 2020 AND 2019

 

 

         INVESTMENT DIVISIONS
         GREAT-WEST GOVERNMENT MONEY
MARKET FUND		        GREAT-WEST
INFLATION-
PROTECTED
SECURITIES
FUND		        GREAT-WEST INTERNATIONAL
INDEX FUND
         2020        2019        2020        2020        2019
                           (1)                  

INCREASE (DECREASE) IN NET ASSETS:

                         

OPERATIONS:

                         

Net investment income (loss)

   $      39,781     $      215,933     $      -     $      46,604     $      30  

Net realized gain (loss) on investments

                  (0 )         15,358          579  

Change in net unrealized appreciation (depreciation) on investments

        (0 )              1,262          113,043          2,707  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from operations

        39,781          215,933          1,262          175,005          3,316  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CONTRACT TRANSACTIONS:

                         

Proceeds from units sold

        5,993,505          4,129,581          691,554          130,503          4,529  

Transfers for contract benefits and terminations

        (964,171 )         (986,709 )         (1 )         (3,053 )         (11,143 ) 

Net transfers

        4,305,835          2,162,463          (32,772 )         2,963,092          (49,500 ) 

Contract maintenance charges

        (5,372 )         (6,291 )                   (12 ) 

Other, net

        -          -          -          -          -  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from contract transactions

        9,329,797          5,299,044          658,782          3,090,542          (56,126 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Total increase (decrease) in net assets

        9,369,577          5,514,977          660,044          3,265,546          (52,810 ) 

NET ASSETS:

                         

Beginning of period

        14,207,150          8,692,173               1,354          54,164  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

End of period

   $      23,576,727     $      14,207,150     $      660,044     $      3,266,900     $      1,354  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CHANGES IN UNITS OUTSTANDING:

                         

Units issued

        1,448,933          928,819          57,943          226,850          489  

Units redeemed

        (758,795 )         (530,985 )         (1 )         (2,250 )         (5,246 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Net increase (decrease)

        690,138          397,834          57,941          224,600          (4,757 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

 

(1) For the period of September 21, 2020 to December 31, 2020.

 

 

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, 2020 AND 2019

 

 

         INVESTMENT DIVISIONS
           GREAT-WEST INTERNATIONAL  
VALUE FUND		          GREAT-WEST LARGE CAP  
GROWTH FUND		          GREAT-WEST LARGE CAP VALUE  
FUND INVESTOR II CLASS
         2020        2019        2020        2019        2020        2019
                                                      (1)

INCREASE (DECREASE) IN NET ASSETS:

                              

OPERATIONS:

                              

Net investment income (loss)

   $      46,481     $      63,726     $      3,681     $      137     $      24,248     $      14,251  

Net realized gain (loss) on investments

        (66,457 )         (122,553 )         51,028          20,053          (17,312 )         61,612  

Change in net unrealized appreciation (depreciation) on investments

        477,433          1,121,787          (8,068 )         33,113          48,064          74,984  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from operations

        457,457          1,062,960          46,640          53,303          55,000          150,847  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CONTRACT TRANSACTIONS:

                              

Proceeds from units sold

        68,990          71,368          25,226          15,205          9,591          2,105  

Transfers for contract benefits and terminations

        (55,110 )         (126,518 )         (2,454 )         (4,882 )         (18,555 )         (3,742 ) 

Net transfers

        (334,526 )         (887,399 )         90,910          (251,334 )         (78,974 )         2,287,235  

Contract maintenance charges

        (35 )         (2,033 )         (80 )         (62 )              (79 ) 

Other, net

        -          (33,287 )         -          -          -          -  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from contract transactions

        (320,681 )         (977,869 )         113,602          (241,073 )         (87,939 )         2,285,519  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Total increase (decrease) in net assets

        136,776          85,091          160,242          (187,770 )         (32,939 )         2,436,366  

NET ASSETS:

                              

Beginning of period

        5,149,493          5,064,402          19,280          207,050          2,436,366          -  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

End of period

   $      5,286,269     $      5,149,493     $      179,522     $      19,280     $      2,403,427     $      2,436,366  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CHANGES IN UNITS OUTSTANDING:

                              

Units issued

        45,740          44,596          4,167          447          50,153          251,913  

Units redeemed

        (69,147 )         (117,375 )         (1,660 )         (6,564 )         (61,654 )         (24,030 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Net increase (decrease)

        (23,407 )         (72,779 )         2,507          (6,117 )         (11,501 )         227,883  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

 

(1) For the period October 28, 2019 to December 31, 2019.

 

 

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, 2020 AND 2019

 

 

         INVESTMENT DIVISIONS
             GREAT-WEST LIFETIME 2015 FUND                GREAT-WEST LIFETIME 2020 FUND                GREAT-WEST LIFETIME 2025 FUND    
         2020        2019        2020        2019        2020        2019

INCREASE (DECREASE) IN NET ASSETS:

                              

OPERATIONS:

                              

Net investment income (loss)

   $      25,765     $      19,844     $      11,670     $      9,329     $      78,029     $      56,905  

Net realized gain (loss) on investments

        20,343          (3,199 )         16,966          18,609          6,883          203,221  

Change in net unrealized appreciation (depreciation) on investments

        114,783          174,513          37,059          46,088          368,581          288,099  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from operations

        160,890          191,158          65,695          74,026          453,493          548,225  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CONTRACT TRANSACTIONS:

                              

Proceeds from units sold

        233,002          384,276          40,481          67,990          977,600          976,433  

Transfers for contract benefits and terminations

        (26,120 )         (37,046 )         (9,778 )         (23,854 )         (80,654 )         (101,182 ) 

Net transfers

        (123,632 )         (804,097 )         88,159          (69,205 )         (681,530 )         493,575  

Contract maintenance charges

             (675 )         (753 )         (944 )              (2,443 ) 

Other, net

        -          -          -          -          -          -  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from contract transactions

        83,249          (457,542 )         118,110          (26,013 )         215,416          1,366,383  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Total increase (decrease) in net assets

        244,140          (266,384 )         183,805          48,013          668,909          1,914,608  

NET ASSETS:

                              

Beginning of period

        1,380,614          1,646,998          491,618          443,605          4,073,988          2,159,380  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

End of period

   $      1,624,754     $      1,380,614     $      675,423     $      491,618     $      4,742,897     $      4,073,988  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CHANGES IN UNITS OUTSTANDING:

                              

Units issued

        18,762          70,082          11,716          7,144          94,630          194,863  

Units redeemed

        (12,246 )         (110,541 )         (2,888 )         (9,055 )         (83,246 )         (80,488 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Net increase (decrease)

        6,515          (40,459 )         8,828          (1,911 )         11,384          114,375  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

 

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, 2020 AND 2019

 

 

         INVESTMENT DIVISIONS
             GREAT-WEST LIFETIME 2030 FUND                GREAT-WEST LIFETIME 2035 FUND              GREAT-WEST LIFETIME 2040 FUND    
         2020        2019        2020        2019        2020        2019

INCREASE (DECREASE) IN NET ASSETS:

                              

OPERATIONS:

                              

Net investment income (loss)

   $      42,618     $      29,491     $      26,962     $      16,493     $      22,547     $      13,719  

Net realized gain (loss) on investments

        83,586          91,082          17,359          (59,443 )         (6,191 )         50,158  

Change in net unrealized appreciation (depreciation) on investments

        160,749          131,020          152,055          264,079          104,751          79,625  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from operations

        286,953          251,593          196,375          221,129          121,106          143,502  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CONTRACT TRANSACTIONS:

                              

Proceeds from units sold

        663,767          69,019          526,105          138,852          182,101          28,510  

Transfers for contract benefits and terminations

        (48,641 )         (41,475 )         (156,007 )         (25,025 )         (14,334 )         (83,393 ) 

Net transfers

        (160,502 )         149,034          (59,059 )         (633,445 )         364,017          102,809  

Contract maintenance charges

        (1,999 )         (1,969 )              (1,095 )              (610 ) 

Other, net

        -          -          -          -          -          -  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from contract transactions

        452,625          174,609          311,040          (520,713 )         531,784          47,316  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Total increase (decrease) in net assets

        739,578          426,202          507,415          (299,584 )         652,890          190,818  

NET ASSETS:

                              

Beginning of period

        1,637,130          1,210,928          1,249,500          1,549,084          770,657          579,839  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

End of period

   $      2,376,708     $      1,637,130     $      1,756,915     $      1,249,500     $      1,423,547     $      770,657  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CHANGES IN UNITS OUTSTANDING:

                              

Units issued

        85,169          31,239          43,845          41,645          60,706          13,421  

Units redeemed

        (50,858 )         (17,905 )         (22,505 )         (87,195 )         (27,343 )         (9,780 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Net increase (decrease)

        34,311          13,334          21,340          (45,550 )         33,363          3,641  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

 

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, 2020 AND 2019

 

 

         INVESTMENT DIVISIONS
             GREAT-WEST LIFETIME 2045 FUND               GREAT-WEST LIFETIME 2050 FUND               GREAT-WEST LIFETIME 2055 FUND    
         2020        2019        2020        2019        2020        2019

INCREASE (DECREASE) IN NET ASSETS:

                              

OPERATIONS:

                              

Net investment income (loss)

   $      16,849     $      9,525     $      7,116     $      4,136     $      5,520     $      4,739  

Net realized gain (loss) on investments

        16,405          34,183          10,542          23,206          32,097          21,122  

Change in net unrealized appreciation (depreciation) on investments

        97,041          88,330          32,318          26,565          24,903          19,089  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from operations

        130,294          132,038          49,976          53,907          62,520          44,950  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CONTRACT TRANSACTIONS:

                              

Proceeds from units sold

        316,209          155,887          16,959          6,852          54,940          24,261  

Transfers for contract benefits and terminations

        (129,586 )         (21,286 )         (4,169 )         (164,707 )         (10,749 )         (40,661 ) 

Net transfers

        179,656          (76,136 )         139,364          89,140          (197,063 )         283,378  

Contract maintenance charges

        (1,263 )         (1,589 )              (136 )              (212 ) 

Other, net

        -          -          -          -          -          -  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from contract transactions

        365,017          56,876          152,154          (68,851 )         (152,873 )         266,766  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Total increase (decrease) in net assets

        495,311          188,914          202,130          (14,944 )         (90,353 )         311,716  

NET ASSETS:

                              

Beginning of period

        674,620          485,706          213,215          228,159          484,677          172,961  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

End of period

   $      1,169,931     $      674,620     $      415,345     $      213,215     $      394,324     $      484,677  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CHANGES IN UNITS OUTSTANDING:

                              

Units issued

        49,222          44,215          12,881          8,125          9,170          22,006  

Units redeemed

        (24,823 )         (39,407 )         (2,514 )         (13,031 )         (18,772 )         (3,376 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Net increase (decrease)

        24,399          4,808          10,367          (4,906 )         (9,602 )         18,630  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

 

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, 2020 AND 2019

 

 

         INVESTMENT DIVISIONS  
             GREAT-WEST MID CAP VALUE FUND                  GREAT-WEST MODERATE    
PROFILE FUND		              GREAT-WEST MODERATELY    
AGGRESSIVE PROFILE FUND		  
         2020          2019          2020          2019          2020          2019  

INCREASE (DECREASE) IN NET ASSETS:

                              

OPERATIONS:

                              

Net investment income (loss)

   $      681     $      111     $      4,448     $      6,065     $      1,487     $      1,541  

Net realized gain (loss) on investments

        (4,658 )         (5,731 )         387          17,211          (5,173 )         6,818  

Change in net unrealized appreciation (depreciation) on investments

        2,734          20,354          28,315          25,023          8,941          7,923  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Increase (decrease) in net assets resulting from operations

        (1,243 )         14,734          33,150          48,299          5,255          16,282  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

CONTRACT TRANSACTIONS:

                              

Proceeds from units sold

        35,909          25,458          3,012          3,035          5,220          3,247  

Transfers for contract benefits and terminations

        (2,771 )         (2,746 )         (6,603 )         (48,181 )         (22,818 )         (1,584 ) 

Net transfers

        (5,610 )         (39,929 )         (2,339 )         24,998          (14,560 )         14,410  

Contract maintenance charges

             (36 )              (220 )              (82 ) 

Other, net

        -          -          -          -          -          -  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Increase (decrease) in net assets resulting from contract transactions

        27,528          (17,253 )         (5,929 )         (20,368 )         (32,157 )         15,991  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Total increase (decrease) in net assets

        26,285          (2,519 )         27,220          27,931          (26,901 )         32,273  

NET ASSETS:

                              

Beginning of period

        78,854          81,373          311,140          283,209          109,470          77,197  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

End of period

   $      105,139     $      78,854     $      338,360     $      311,140     $      82,569     $      109,470  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

CHANGES IN UNITS OUTSTANDING:

                              

Units issued

        4,614          3,267          2,170          4,514          1,030          2,677  

Units redeemed

        (2,706 )         (4,642 )         (2,758 )         (6,338 )         (3,953 )         (1,316 ) 
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Net increase (decrease)

        1,908          (1,375 )         (588 )         (1,824 )         (2,923 )         1,361  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

 

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, 2020 AND 2019

 

 

           INVESTMENT DIVISIONS  
           GREAT-WEST MODERATELY
    CONSERVATIVE PROFILE FUND		                   GREAT-WEST MULTI- SECTOR    
BOND FUND		                GREAT-WEST REAL ESTATE    
INDEX FUND		  
           2020          2019            2020            2019            2020          2019  

INCREASE (DECREASE) IN NET ASSETS:

                              

OPERATIONS:

                              

Net investment income (loss)

   $          12,911     $      2,214     $          10,992     $          10,602     $          3,246     $      2,297  

Net realized gain (loss) on investments

        2,674          5,577          10,042          10,535          (32,084 )         11,269  

Change in net unrealized appreciation (depreciation) on investments

        49,343          6,457          (2,849 )         43,427          (14,934 )         29,951  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Increase (decrease) in net assets resulting from operations

        64,929          14,248          18,185          64,564          (43,772 )         43,517  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

CONTRACT TRANSACTIONS:

                              

Proceeds from units sold

        1,272,873          4,142          10,518          51,998          148,559          64,092  

Transfers for contract benefits and terminations

        (57,154 )         (2,070 )         (9,233 )         (11,813 )         (5,329 )         (21,984 ) 

Net transfers

        (10,535 )         29,612          (181,697 )         56,656          (67,445 )         (10,892 ) 

Contract maintenance charges

        (2,103 )         (70 )         (108 )         (308 )              (106 ) 

Other, net

        -          -          -          (102,406 )         -          -  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Increase (decrease) in net assets resulting from contract transactions

        1,203,082          31,614          (180,520 )         (5,873 )         75,785          31,110  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Total increase (decrease) in net assets

        1,268,010          45,862          (162,335 )         58,691          32,013          74,627  

NET ASSETS:

                              

Beginning of period

        133,214          87,352          565,572          506,881          269,361          194,734  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

End of period

   $          1,401,224     $      133,214     $          403,237     $          565,572     $          301,374     $      269,361  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

CHANGES IN UNITS OUTSTANDING:

                              

Units issued

        165,178          3,941          3,583          3,209          16,300          8,179  

Units redeemed

        (66,119 )         (1,068 )         (8,197 )         (3,228 )         (11,626 )         (6,153 ) 
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Net increase (decrease)

        99,059          2,873          (4,614 )         (19 )         4,674          2,026  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

 

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, 2020 AND 2019

 

 

         INVESTMENT DIVISIONS
             GREAT-WEST S&P MID CAP  400®    
INDEX FUND		            GREAT-WEST S&P SMALL CAP 600®    
INDEX FUND		            GREAT-WEST SHORT DURATION    
BOND FUND
         2020        2019        2020        2019        2020        2019

INCREASE (DECREASE) IN NET ASSETS:

                              

OPERATIONS:

                              

Net investment income (loss)

   $      52,112     $      5,349     $      2,899     $      158     $      136,776     $      166,840  

Net realized gain (loss) on investments

        67,325          79,708          36,205          2,641          55,785          8,303  

Change in net unrealized appreciation (depreciation) on investments

        358,590          267,556          37,589          990          136,896          246,673  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from operations

        478,027          352,613          76,694          3,789          329,456          421,816  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CONTRACT TRANSACTIONS:

                              

Proceeds from units sold

        275,617          168,557          115,735          7,710          108,245          82,625  

Transfers for contract benefits and terminations

        (60,483 )         (277,963 )         (4,014 )         (138 )         (210,829 )         (165,913 ) 

Net transfers

        5,430,308          (9,160 )         240,501          14,694          (1,211,527 )         246,765  

Contract maintenance charges

             (865 )              (30 )         (286 )         (1,891 ) 

Other, net

        -          -          -          -          -          (286,165 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from contract transactions

        5,645,442          (119,431 )         352,223          22,236          (1,314,397 )         (124,579 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Total increase (decrease) in net assets

        6,123,469          233,182          428,916          26,025          (984,941 )         297,237  

NET ASSETS:

                              

Beginning of period

        1,620,855          1,387,673          40,103          14,078          7,942,471          7,645,234  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

End of period

   $      7,744,324     $      1,620,855     $      469,019     $      40,103     $      6,957,530     $      7,942,471  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CHANGES IN UNITS OUTSTANDING:

                              

Units issued

        346,723          26,802          33,157          2,559          18,681          27,648  

Units redeemed

        (77,049 )         (33,020 )         (10,199 )         (1,243 )         (105,708 )         (35,428 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Net increase (decrease)

        269,674          (6,218 )         22,958          1,316          (87,027 )         (7,780 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

 

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, 2020 AND 2019

 

 

         INVESTMENT DIVISIONS
             GREAT-WEST SMALL CAP    
VALUE FUND		            GREAT-WEST T. ROWE PRICE MID CAP    
GROWTH FUND		            GREAT-WEST
T. ROWE PRICE
EQUITY INCOME
FUND
         2020        2019        2020        2019        2019
                                             (1)

INCREASE (DECREASE) IN NET ASSETS:

                         

OPERATIONS:

                         

Net investment income (loss)

   $      (0 )    $      5     $      26     $      360     $      17,586  

Net realized gain (loss) on investments

        (2,337 )         2,961          159,671          459,466          215,912  

Change in net unrealized appreciation (depreciation) on investments

        87,234          185,440          253,316          544,169          77,207  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from operations

        84,897          188,406          413,013          1,003,995          310,705  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CONTRACT TRANSACTIONS:

                         

Proceeds from units sold

        15,514          21,410          104,568          101,991          11,232  

Transfers for contract benefits and terminations

        (8,737 )         (11,466 )         (91,994 )         (782,859 )         (19,022 ) 

Net transfers

        (40,219 )         26,418          (991,369 )         (637,112 )         (1,927,128 ) 

Contract maintenance charges

             (256 )              (1,573 )         (386 ) 

Other, net

        -          -          -          -          -  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from contract transactions

        (33,442 )         36,106          (978,795 )         (1,319,553 )         (1,935,304 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Total increase (decrease) in net assets

        51,454          224,512          (565,782 )         (315,558 )         (1,624,599 ) 

NET ASSETS:

                         

Beginning of period

        980,305          755,793          3,447,416          3,762,974          1,624,599  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

End of period

   $      1,031,759     $      980,305     $      2,881,634     $      3,447,416     $      -  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CHANGES IN UNITS OUTSTANDING:

                            .  

Units issued

        6,309          2,108          11,500          13,754          10,422  

Units redeemed

        (5,864 )         (1,238 )         (31,709 )         (40,552 )         (71,172 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Net increase (decrease)

        445          870          (20,209 )         (26,798 )         (60,750 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

    (1) For the period January 1, 2019 to October 28, 2019.  

 

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, 2020 AND 2019

 

 

         INVESTMENT DIVISIONS
             GREAT-WEST U.S. GOVERNMENT    
SECURITIES FUND		            INVESCO OPPENHEIMER V.I. MAIN STREET
SMALL CAP FUND		            INVESCO V.I. CORE    
EQUITY FUND
         2020        2019        2020        2019        2020        2019

INCREASE (DECREASE) IN NET ASSETS:

                              

OPERATIONS:

                              

Net investment income (loss)

   $      28,600     $      49,314     $      2,995     $      2,140     $      309     $      199  

Net realized gain (loss) on investments

        6,996          (4,174 )         6,620          (43,563 )         4,899          2,249  

Change in net unrealized appreciation (depreciation) on investments

        154,398          141,489          69,224          213,464          (1,117 )         2,905  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from operations

        189,995          186,629          78,840          172,041          4,091          5,353  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CONTRACT TRANSACTIONS:

                              

Proceeds from units sold

        578,251          18          30,469          40,911          -          -  

Transfers for contract benefits and terminations

        (32,682 )         (41,410 )         (7,961 )         (624,851 )         (339 )         (442 ) 

Net transfers

        (67,958 )         171,195          (226,054 )         (30,134 )         (852 )         (2,241 ) 

Contract maintenance charges

             (762 )              (403 )              (8 ) 

Other, net

        -          -          -          -          -          -  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from contract transactions

        477,610          129,041          (203,546 )         (614,477 )         (1,191 )         (2,691 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Total increase (decrease) in net assets

        667,605          315,670          (124,707 )         (442,436 )         2,900          2,662  

NET ASSETS:

                              

Beginning of period

        3,279,475          2,963,805          470,612          913,048          22,050          19,388  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

End of period

   $      3,947,080     $      3,279,475     $      345,905     $      470,612     $      24,950     $      22,050  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CHANGES IN UNITS OUTSTANDING:

                              

Units issued

        26,797          12,980          9,560          10,950          145          2  

Units redeemed

        (7,700 )         (7,268 )         (22,304 )         (58,805 )         (150 )         (109 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Net increase (decrease)

        19,096          5,712          (12,744 )         (47,855 )         (5 )         (107 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

 

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, 2020 AND 2019

 

 

         INVESTMENT DIVISIONS
             INVESCO V.I. GLOBAL REAL    
ESTATE FUND		            INVESCO V.I. HEALTH CARE FUND                INVESCO V.I. INTERNATIONAL
GROWTH FUND
         2020        2019        2020        2019        2020        2019

INCREASE (DECREASE) IN NET ASSETS:

                              

OPERATIONS:

                              

Net investment income (loss)

   $      62,070     $      51,335     $      202     $      24     $      81,891     $      56,572  

Net realized gain (loss) on investments

        33,405          45,367          2,593          3,054          83,820          280,885  

Change in net unrealized appreciation (depreciation) on investments

        (211,828 )         181,368          6,344          16,074          282,282          522,499  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from operations

        (116,353 )         278,070          9,139          19,152          447,993          859,956  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CONTRACT TRANSACTIONS:

                              

Proceeds from units sold

        78,153          2,063          -          -          26,335          27,838  

Transfers for contract benefits and terminations

        (9,317 )         (23,959 )         (678 )         (4,668 )         (33,410 )         (80,766 ) 

Net transfers

        240,636          (501,696 )         (1,352 )         (31,850 )         (317,059 )         (95,843 ) 

Contract maintenance charges

             (326 )         (53 )         (80 )         (23 )         (1,133 ) 

Other, net

        1,270          (1,371 )         -          -          -          (21,660 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from contract transactions

        310,742          (525,289 )         (2,083 )         (36,598 )         (324,157 )         (171,564 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Total increase (decrease) in net assets

        194,388          (247,219 )         7,055          (17,446 )         123,836          688,392  

NET ASSETS:

                              

Beginning of period

        1,223,825          1,471,044          63,659          81,105          3,788,850          3,100,458  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

End of period

   $      1,418,213     $      1,223,825     $      70,714     $      63,659     $      3,912,686     $      3,788,850  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CHANGES IN UNITS OUTSTANDING:

                              

Units issued

        9,532          1,595          138          97          19,034          15,589  

Units redeemed

        (868 )         (14,484 )         (184 )         (1,173 )         (37,228 )         (25,666 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Net increase (decrease)

        8,664          (12,889 )         (46 )         (1,076 )         (18,194 )         (10,077 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

 

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, 2020 AND 2019

 

 

        INVESTMENT DIVISIONS
            INVESCO V.I. MID CAP CORE    
EQUITY FUND		           INVESCO V.I. TECHNOLOGY FUND           JANUS HENDERSON VIT BALANCED    
PORTFOLIO
        2020       2019       2020       2019       2020       2019

INCREASE (DECREASE) IN NET ASSETS:

                        

OPERATIONS:

                        

Net investment income (loss)

   $     2,585     $     1,144     $     0     $     $     63,154     $     52,949  

Net realized gain (loss) on investments

       61,906         24,800         13,989         34,636         70,881         203,778  

Change in net unrealized appreciation (depreciation) on investments

       (20,425 )        23,477         24,515         3,669         190,957         270,574  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Increase (decrease) in net assets resulting from operations

       44,066         49,421         38,504         38,305         324,992         527,301  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

CONTRACT TRANSACTIONS:

                        

Proceeds from units sold

       -         -         -         -         142,010         365,901  

Transfers for contract benefits and terminations

       (2,686 )        (2,141 )        (1,159 )        (8,049 )        (74,533 )        (842,819 ) 

Net transfers

       106,491         4,024         (1,991 )        (66,019 )        333,518         451,466  

Contract maintenance charges

           (129 )            (130 )            (1,618 ) 

Other, net

       -         -         -         -         2,537         (3,106 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Increase (decrease) in net assets resulting from contract transactions

       103,805         1,754         (3,149 )        (74,198 )        403,533         (30,176 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total increase (decrease) in net assets

       147,871         51,175         35,355         (35,893 )        728,525         497,125  

NET ASSETS:

                        

Beginning of period

       247,356         196,181         93,567         129,460         2,697,549         2,200,424  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

End of period

   $     395,227     $     247,356     $     128,922     $     93,567     $     3,426,074     $     2,697,549  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

CHANGES IN UNITS OUTSTANDING:

                        

Units issued

       5,735         563         309         167         28,754         29,670  

Units redeemed

       (1,682 )        (506 )        (468 )        (2,629 )        (20,851 )        (29,668 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net increase (decrease)

       4,054         57         (159 )        (2,462 )        7,902         2  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

 

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, 2020 AND 2019

 

 

          INVESTMENT DIVISIONS
              JANUS HENDERSON VIT ENTERPRISE    
PORTFOLIO		           JANUS HENDERSON VIT FLEXIBLE    
BOND PORTFOLIO		           JANUS HENDERSON VIT FORTY    
PORTFOLIO
          2020       2019       2020       2019       2020       2019
                  (1)                                

INCREASE (DECREASE) IN NET ASSETS:

                        

OPERATIONS:

                        

Net investment income (loss)

   $         645     $     483     $     69,087     $     72,438     $     21,507     $     4,164  

Net realized gain (loss) on investments

       26,453         129         80,698         64,587         466,951         160,363  

Change in net unrealized appreciation (depreciation) on investments

       71,828         40,549         111,215         53,752         520,024         603,413  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Increase (decrease) in net assets resulting from operations

       98,926         41,161         261,000         190,777         1,008,482         767,940  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

CONTRACT TRANSACTIONS:

                        

Proceeds from units sold

       70,357         29,592         162         8,999         80,817         78,082  

Transfers for contract benefits and terminations

       (10,400 )        (5,207 )        (41,890 )        (51,335 )        (35,854 )        (91,647 ) 

Net transfers

       6,587         545,102         687,423         1,152         (831,016 )        (468,424 ) 

Contract maintenance charges

           (125 )        (107 )        (934 )            (1,854 ) 

Other, net

       -         -         -         (100,111 )        -         -  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Increase (decrease) in net assets resulting from contract transactions

       66,543         569,362         645,589         (142,229 )        (786,053 )        (483,843 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total increase (decrease) in net assets

       165,469         610,523         906,590         48,548         222,429         284,097  

NET ASSETS:

                        

Beginning of period

       610,523         -         1,853,468         1,804,920         2,540,872         2,256,775  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

End of period

   $         775,992     $     610,523     $     2,760,058     $     1,853,468     $     2,763,301     $     2,540,872  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

CHANGES IN UNITS OUTSTANDING:

                        

Units issued

       21,030         39,259         64,983         51,740         7,849         18,778  

Units redeemed

       (18,555 )        (481 )        (42,643 )        (56,044 )        (16,793 )        (27,658 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net increase (decrease)

       2,475         38,778         22,340         (4,304 )        (8,945 )        (8,880 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

 

 

(1) For the period June 5, 2019 to December 31, 2019.

 

 

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, 2020 AND 2019

 

 

   

INVESTMENT DIVISIONS

  
            JANUS HENDERSON VIT GLOBAL    
RESEARCH PORTFOLIO		           JANUS HENDERSON VIT GLOBAL    
TECHNOLOGY AND INNOVATION
PORTFOLIO		           JANUS HENDERSON VIT OVERSEAS    
PORTFOLIO
        2020       2019       2020       2019       2020       2019

INCREASE (DECREASE) IN NET ASSETS:

                        

OPERATIONS:

                        

Net investment income (loss)

   $     4,624     $     7,948     $     64     $     5,840     $     788     $     1,057  

Net realized gain (loss) on investments

       175,787         127,563         385,036         159,955         (65 )        (92 ) 

Change in net unrealized appreciation (depreciation) on investments

       (45,828 )        71,321         451,940         311,658         9,052         12,246  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Increase (decrease) in net assets resulting from operations

       134,582         206,832         837,040         477,453         9,775         13,211  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

CONTRACT TRANSACTIONS:

                        

Proceeds from units sold

       -         -         235,341         304,584         -         -  

Transfers for contract benefits and terminations

       (8,961 )        (20,342 )        (37,910 )        (70,040 )        (712 )        (979 ) 

Net transfers

       (540,503 )        (209,631 )        (451,108 )        131,147         (235 )        -  

Contract maintenance charges

           (321 )            (782 )            (4 ) 

Other, net

       -         -         -         -         -         -  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Increase (decrease) in net assets resulting from contract transactions

       (549,465 )        (230,294 )        (253,677 )        364,909         (947 )        (983 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total increase (decrease) in net assets

       (414,882 )        (23,462 )        583,362         842,362         8,828         12,228  

NET ASSETS:

                        

Beginning of period

       733,844         757,306         1,764,124         921,762         61,586         49,358  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

End of period

   $     318,962     $     733,844     $     2,347,486     $     1,764,124     $     70,414     $     61,586  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

CHANGES IN UNITS OUTSTANDING:

                        

Units issued

       6,479         7,707         8,053         11,449         4         5  

Units redeemed

       (34,544 )        (22,298 )        (11,515 )        (4,477 )        (37 )        (40 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net increase (decrease)

       (28,065 )        (14,591 )        (3,462 )        6,972         (33 )        (35 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

 

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, 2020 AND 2019

 

 

   

INVESTMENT DIVISIONS

  
            LORD ABBETT SERIES DEVELOPING    
GROWTH PORTFOLIO		       LORD ABBETT SERIES TOTAL RETURN    
PORTFOLIO		       MFS VIT GROWTH SERIES    
        2020       2019       2020       2019       2020       2019
                                (1)               (2)

INCREASE (DECREASE) IN NET ASSETS:

                        

OPERATIONS:

                        

Net investment income (loss)

   $     (0)     $     $     484     $     181     $     -     $     1,669  

Net realized gain (loss) on investments

       22,057         12,687         538         155         1,277      

Change in net unrealized appreciation (depreciation) on investments

       72,001         15,193         25         28         2,456         230  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Increase (decrease) in net assets resulting from operations

       94,058         27,880         1,046         364         3,733         1,899  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

CONTRACT TRANSACTIONS:

                        

Proceeds from units sold

       -         -         1,061         -         12         -  

Transfers for contract benefits and terminations

       (1,857 )        (1,836 )        (426 )        (168 )        (375 )        (253 ) 

Net transfers

       (1,417 )        24,458         12,444         6,725         5,781         7,053  

Contract maintenance charges

           (38 )        (20 )        (12 )        (20 )        (18 ) 

Other, net

       -         -         -         -         -         -  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Increase (decrease) in net assets resulting from contract transactions

       (3,274 )        22,584         13,059         6,545         5,398         6,782  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Total increase (decrease) in net assets

       90,784         50,464         14,105         6,909         9,131         8,681  

NET ASSETS:

                        

Beginning of period

       130,985         80,521         6,909         -         8,681      
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

End of period

   $     221,769     $     130,985     $     21,014     $     6,909     $     17,812     $     8,681  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

CHANGES IN UNITS OUTSTANDING:

                        

Units issued

       442         1,770         1,502         1,871         476         1,697  

Units redeemed

       (605 )        (147 )        (350 )        (1,241 )        (115 )        (1,048 ) 
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Net increase (decrease)

       (163 )        1,623         1,152         630         361         649  
   

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    (1)  For the period March 13, 2019 to December 31, 2019.  
    (2)  For the period January 17, 2019 to December 31, 2019.  

 

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, 2020 AND 2019

 

 

   

INVESTMENT DIVISIONS

  
         MFS VIT II
INTERNATIONAL
GROWTH
PORTFOLIO		        MFS VIT III BLENDED RESEARCH
SMALL CAP EQUITY PORTFOLIO		        MFS VIT III
GLOBAL REAL
ESTATE
PORTFOLIO
         2020        2020        2019        2020
         (1)                 (2)        (3)

INCREASE (DECREASE) IN NET ASSETS:

                    

OPERATIONS:

                    

Net investment income (loss)

   $      -     $      113     $      38     $      -  

Net realized gain (loss) on investments

        5,862          989          897          1,010  

Change in net unrealized appreciation (depreciation) on investments

        27,706          883          (337 )         2,720  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from operations

        33,567          1,985          598          3,730  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CONTRACT TRANSACTIONS:

                    

Proceeds from units sold

        262,737          274          12          25,582  

Transfers for contract benefits and terminations

        (1 )         (236 )         (157 )         (1 ) 

Net transfers

        174,013          7,587          5,943          5,983  

Contract maintenance charges

             (12 )         (11 )      

Other, net

        -          -          -          -  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from contract transactions

        436,750          7,613          5,787          31,564  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Total increase (decrease) in net assets

        470,317          9,598          6,385          35,294  

NET ASSETS:

                    

Beginning of period

             6,385          -       
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

End of period

   $      470,317     $      15,983     $      6,385     $      35,294  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CHANGES IN UNITS OUTSTANDING:

                    

Units issued

        46,597          789          1,166          3,820  

Units redeemed

        (8,912 )         (94 )         (686 )         (1,210 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Net increase (decrease)

        37,685          695          480          2,610  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

    (1) For the period of September 21, 2020 to December 31, 2020.  
    (2) For the period March 13, 2019 to December 31, 2019.  
    (3) For the period of September 21, 2020 to December 31, 2020.  

 

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, 2020 AND 2019

 

 

   

INVESTMENT DIVISIONS

  
         MFS VIT III MID CAP VALUE
PORTFOLIO		        MFS VIT MID CAP GROWTH SERIES        MFS VIT RESEARCH SERIES
         2020        2019        2020        2019        2020        2019
                           (1)        (2)                 (3)

INCREASE (DECREASE) IN NET ASSETS:

                              

OPERATIONS:

                              

Net investment income (loss)

   $      66     $      31     $      -     $      -     $      433     $      390  

Net realized gain (loss) on investments

        192          699          933          228          2,503          9,951  

Change in net unrealized appreciation (depreciation) on investments

        477          (34 )         39,275          (107 )         6,452          108  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from operations

        735          696          40,208          121          9,389          10,449  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CONTRACT TRANSACTIONS:

                              

Proceeds from units sold

        12          -          248,153          -          12          -  

Transfers for contract benefits and terminations

        (108 )         (72 )         (42 )         -          (1,727 )         (1,585 ) 

Net transfers

        2,365          (446 )         193,898          (2,441 )         1,936          45,292  

Contract maintenance charges

             (5 )              -          (94 )         (111 ) 

Other, net

        -          -          -          -          -          -  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from contract transactions

        2,269          (523 )         442,009          (2,441 )         127          43,596  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Total increase (decrease) in net assets

        3,004          173          482,217          (2,320 )         9,516          54,045  

NET ASSETS:

                              

Beginning of period

        2,629          2,456               2,320          54,045          -  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

End of period

   $      5,633     $      2,629     $      482,217     $      -     $      63,561     $      54,045  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CHANGES IN UNITS OUTSTANDING:

                              

Units issued

        277          538          25,652               401          8,798  

Units redeemed

        (58 )         (585 )         (3,840 )         (199 )         (373 )         (5,552 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Net increase (decrease)

        219          (47 )         21,812          (199 )         28          3,246  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

    (1) For the period of April 21, 2020 to December 31, 2020.  
    (2) For the period January 1, 2019 to January 17, 2019.  
    (3) For the period March 13, 2019 to December 31, 2019.  

 

 

 

 

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, 2020 AND 2019

 

 

   

INVESTMENT DIVISIONS

  
         MFS VIT TOTAL RETURN BOND
SERIES		        MFS VIT VALUE
SERIES		        NEUBERGER BERMAN AMT MID CAP
GROWTH PORTFOLIO
         2020        2019         2020        2019        2020        2019

INCREASE (DECREASE) IN NET ASSETS:

                              

OPERATIONS:

                              

Net investment income (loss)

   $      145,934     $      140,342     $      7,379     $      10,212     $      (0 )    $   

Net realized gain (loss) on investments

        (1,764 )         (7,856 )         18,565          25,029          2,414          1,211  

Change in net unrealized appreciation (depreciation) on investments

        188,308          186,609          (11,585 )         73,394          4,018          2,798  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from operations

        332,479          319,095          14,358          108,635          6,432          4,009  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CONTRACT TRANSACTIONS:

                              

Proceeds from units sold

        12,008          9,212          28,046          39,490          -          -  

Transfers for contract benefits and terminations

        (50,944 )         (186,343 )         (6,744 )         (108,871 )         (232 )         (288 ) 

Net transfers

        (173,133 )         3,178,917          48,932          40,796          (4,543 )         (2,064 ) 

Contract maintenance charges

             (971 )              (306 )              (5 ) 

Other, net

        -          -          -          -          -          -  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from contract transactions

        (212,069 )         3,000,815          70,234          (28,891 )         (4,775 )         (2,357 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Total increase (decrease) in net assets

        120,410          3,319,910          84,592          79,744          1,656          1,652  

NET ASSETS:

                              

Beginning of period

        4,227,758          907,848          435,877          356,133          14,640          12,988  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

End of period

   $      4,348,168     $      4,227,758     $      520,469     $      435,877     $      16,296     $      14,640  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CHANGES IN UNITS OUTSTANDING:

                              

Units issued

        25,916          315,066          7,169          10,448          90          1  

Units redeemed

        (45,535 )         (26,014 )         (2,768 )         (12,178 )         (190 )         (88 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Net increase (decrease)

        (19,619 )         289,052          4,401          (1,730 )         (100 )         (87 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

 

 

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, 2020 AND 2019

 

 

   

INVESTMENT DIVISIONS

  
         NEUBERGER BERMAN AMT MID CAP
INTRINSIC VALUE PORTFOLIO		        NEUBERGER BERMAN AMT
SUSTAINABLE EQUITY PORTFOLIO		        PIMCO VIT GLOBAL BOND
OPPORTUNITIES PORTFOLIO
(UNHEDGED)
         2020        2019        2020        2019        2020        2019
                                                      (1)

INCREASE (DECREASE) IN NET ASSETS:

                              

OPERATIONS:

                              

Net investment income (loss)

   $      742     $      455     $      797     $      749     $      137     $      94  

Net realized gain (loss) on investments

        (865 )         (33,231 )         4,866          10,230          5          27  

Change in net unrealized appreciation (depreciation) on investments

        9,864          134,311          20,663          17,077          81          61  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from operations

        9,741          101,535          26,326          28,056          223          182  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CONTRACT TRANSACTIONS:

                              

Proceeds from units sold

        12          -          12          -          329,804          -  

Transfers for contract benefits and terminations

        (424 )         (73,922 )         (1,829 )         (5,920 )         (137 )         (130 ) 

Net transfers

        126,086          (667,392 )         (202 )         (1,233 )         (17,667 )         5,291  

Contract maintenance charges

             (62 )              (126 )              (9 ) 

Other, net

        7,623          (9,195 )         -          -          -          -  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from contract transactions

        133,297          (750,571 )         (2,019 )         (7,279 )         312,001          5,152  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Total increase (decrease) in net assets

        143,038          (649,036 )         24,307          20,777          312,224          5,334  

NET ASSETS:

                              

Beginning of period

        64,708          713,744          125,397          104,620          5,334          -  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

End of period

   $      207,746     $      64,708     $      149,704     $      125,397     $      317,558     $      5,334  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CHANGES IN UNITS OUTSTANDING:

                              

Units issued

        5,866          5,180          500          1,766          26,876          1,474  

Units redeemed

        (108 )         (34,953 )         (505 )         (2,024 )         (351 )         (974 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Net increase (decrease)

        5,758          (29,773 )         (5 )         (258 )         26,525          500  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

    (1) For the period March 13, 2019 to December 31, 2019.  

 

 

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, 2020 AND 2019

 

 

   

INVESTMENT DIVISIONS

  
         PIMCO VIT HIGH YIELD PORTFOLIO          PIMCO VIT LOW DURATION
PORTFOLIO		          PIMCO VIT REAL RETURN PORTFOLIO  
         2020          2019          2020          2019          2020          2019  

INCREASE (DECREASE) IN NET ASSETS:

                              

OPERATIONS:

                              

Net investment income (loss)

   $      12,366     $      11,061     $      98,340     $      206,181     $      5,766     $      6,804  

Net realized gain (loss) on investments

        (34 )         1,330          (5,147 )         (16,492 )         4,733          (3,595 ) 

Change in net unrealized appreciation (depreciation) on investments

        3,727          16,486          147,464          100,737          32,865          30,780  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Increase (decrease) in net assets resulting from operations

        16,059          28,877          240,657          290,426          43,364          33,989  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

CONTRACT TRANSACTIONS:

                              

Proceeds from units sold

        68,293          35,098          30,808          -          35,891          865  

Transfers for contract benefits and terminations

        (5,528 )         (6,188 )         (85,791 )         (250,635 )         (4,029 )         (62,828 ) 

Net transfers

        15,547          (19,362 )         73,579          1,876,969          5,425          (63,747 ) 

Contract maintenance charges

             (134 )              (3,021 )              (152 ) 

Other, net

        -          -          -          -          -          -  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Increase (decrease) in net assets resulting from contract transactions

        78,311          9,414          18,595          1,623,313          37,287          (125,862 ) 
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Total increase (decrease) in net assets

        94,370          38,291          259,253          1,913,739          80,651          (91,873 ) 

NET ASSETS:

                              

Beginning of period

        218,781          180,490          8,036,637          6,122,898          418,355          510,228  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

End of period

   $      313,151     $      218,781     $      8,295,890     $      8,036,637     $      499,006     $      418,355  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

CHANGES IN UNITS OUTSTANDING:

                              

Units issued

        3,205          2,047          17,943          124,793          7,885          3,708  

Units redeemed

        (328 )         (1,611 )         (16,780 )         (19,173 )         (6,370 )         (10,918 ) 
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Net increase (decrease)

        2,877          436          1,163          105,620          1,516          (7,210 ) 
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

 

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, 2020 AND 2019

 

 

   

INVESTMENT DIVISIONS

  
             PIMCO VIT TOTAL RETURN PORTFOLIO                PIONEER REAL ESTATE SHARES VCT    
PORTFOLIO		              PUTNAM VT    
INTERNATIONAL
    GROWTH FUND    		  
         2020        2019          2020          2019          2019  
                                                   (1)  

INCREASE (DECREASE) IN NET ASSETS:

                         

OPERATIONS:

                         

Net investment income (loss)

   $      93,330     $      120,776     $      1,203     $      1,575     $      -  

Net realized gain (loss) on investments

        46,381          (14,051 )         10,255          15,861          (3,873 ) 

Change in net unrealized appreciation (depreciation) on investments

        211,006          210,626          (19,233 )         (1,839 )         11,607  
    

 

 

 

     

 

 

       

 

 

       

 

 

       

 

 

  

Increase (decrease) in net assets resulting from operations

        350,717          317,351          (7,775 )         15,597          7,734  
    

 

 

 

     

 

 

       

 

 

       

 

 

       

 

 

  

CONTRACT TRANSACTIONS:

                         

Proceeds from units sold

        264,980          60,944          18,051          14,039          -  

Transfers for contract benefits and terminations

        (54,454 )         (269,198 )         (2,027 )         (1,993 )         (576 ) 

Net transfers

        30,662          557,013          (3,922 )         (5,984 )         (51,941 ) 

Contract maintenance charges

             (820 )              (44 )         (13 ) 

Other, net

        8,259          (7,846 )         -          -          -  
    

 

 

 

     

 

 

       

 

 

       

 

 

       

 

 

  

Increase (decrease) in net assets resulting from contract transactions

        249,447          340,093          12,102          6,018          (52,530 ) 
    

 

 

 

     

 

 

       

 

 

       

 

 

       

 

 

  

Total increase (decrease) in net assets

        600,164          657,444          4,327          21,615          (44,796 ) 

NET ASSETS:

                         

Beginning of period

        4,202,413          3,544,969          70,823          49,208          44,796  
    

 

 

 

     

 

 

       

 

 

       

 

 

       

 

 

  

End of period

   $      4,802,577     $      4,202,413     $      75,150     $      70,823     $      -  
    

 

 

 

     

 

 

       

 

 

       

 

 

       

 

 

  

CHANGES IN UNITS OUTSTANDING:

                         

Units issued

        24,547          31,594          1,781          2,283          4  

Units redeemed

        (14,257 )         (14,534 )         (974 )         (1,674 )         (2,269 ) 
    

 

 

 

     

 

 

       

 

 

       

 

 

       

 

 

  

Net increase (decrease)

        10,290          17,060          806          609          (2,265 ) 
    

 

 

 

     

 

 

       

 

 

       

 

 

       

 

 

  
       (1) For the period of January 1, 2019 to November 5, 2019.  

 

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, 2020 AND 2019

 

 

   

INVESTMENT DIVISIONS

  
             PUTNAM VT EQUITY INCOME FUND                  PUTNAM VT GLOBAL ASSET    
ALLOCATION FUND		              PUTNAM VT GLOBAL EQUITY FUND      
         2020          2019          2020          2019          2020          2019  
                                          (1)                     (2)  

INCREASE (DECREASE) IN NET ASSETS:

                              

OPERATIONS:

                              

Net investment income (loss)

   $      10,154     $      7,598     $      107     $      -     $      124     $      -  

Net realized gain (loss) on investments

        36,310          38,818          142          171          1,278          593  

Change in net unrealized appreciation (depreciation) on investments

        25,440          65,168          1,322          313          1,608          3,131  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Increase (decrease) in net assets resulting from operations

        71,904          111,584          1,571          484          3,010          3,724  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

CONTRACT TRANSACTIONS:

                              

Proceeds from units sold

        125,231          102,521          12          -          12          19,001  

Transfers for contract benefits and terminations

        (9,958 )         (48,556 )         (247 )         (142 )         (709 )         (1,164 ) 

Net transfers

        158,635          27,549          7,403          4,808          (6,704 )         11,367  

Contract maintenance charges

             (247 )         (14 )         (10 )         (40 )         (49 ) 

Other, net

        3,805          (4,985 )         -          -          -          -  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Increase (decrease) in net assets resulting from contract transactions

        277,713          76,282          7,155          4,656          (7,441 )         29,155  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Total increase (decrease) in net assets

        349,618          187,866          8,726          5,140          (4,431 )         32,879  

NET ASSETS:

                              

Beginning of period

        528,886          341,020          5,140          -          32,879          -  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

End of period

   $      878,504     $      528,886     $      13,866     $      5,140     $      28,448     $      32,879  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

CHANGES IN UNITS OUTSTANDING:

                              

Units issued

        9,796          3,918          616          1,042          457          4,192  

Units redeemed

        (2,829 )         (1,986 )         (66 )         (648 )         (989 )         (1,725 ) 
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Net increase (decrease)

        6,967          1,932          550          394          (532 )         2,467  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  
       (1) For the period April 8, 2019 to December 31, 2019.  
       (2) For the period March 13, 2019 to December 31, 2019.  

 

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, 2020 AND 2019

 

 

   

INVESTMENT DIVISIONS

  
         PUTNAM VT GROWTH
OPPORTUNITIES FUND		          PUTNAM VT HIGH
YIELD FUND		          PUTNAM VT INCOME
FUND		  
         2020          2019          2020          2019          2020          2019  
                    (1)                                              

INCREASE (DECREASE) IN NET ASSETS:

                              

OPERATIONS:

                              

Net investment income (loss)

   $      170     $      $      35,355     $      11,061     $      39,969     $      19,807  

Net realized gain (loss) on investments

        3,352          145          (2,408 )         1,330          21,756          5,206  

Change in net unrealized appreciation (depreciation) on investments

        66,379          507          (1,605 )         16,486          (34,984 )         36,995  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Increase (decrease) in net assets resulting from operations

        69,901          652          31,342          28,877          26,741          62,008  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

CONTRACT TRANSACTIONS:

                              

Proceeds from units sold

        60,527          3,553          5,960          35,098          232,880          229,331  

Transfers for contract benefits and terminations

        (4,028 )         (307 )         (5,233 )         (6,188 )         (16,728 )         (19,020 ) 

Net transfers

        1,533,603          2,238          25,213          (19,362 )         (872,257 )         230,626  

Contract maintenance charges

        (126 )         (54 )              (134 )              (86 ) 

Other, net

        -          -          3,811          -          -          -  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Increase (decrease) in net assets resulting from contract transactions

        1,589,976          5,430          29,750          9,414          (656,104 )         440,851  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Total increase (decrease) in net assets

        1,659,877          6,082          61,092          38,291          (629,364 )         502,859  

NET ASSETS:

                              

Beginning of period

        6,082          -          218,781          180,490          637,949          135,090  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

End of period

   $      1,665,959     $      6,082     $      279,873     $      218,781     $      8,585     $      637,949  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

CHANGES IN UNITS OUTSTANDING:

                              

Units issued

        65,407          483          2,776          2,047          39,387          47,871  

Units redeemed

        (3,545 )         (167 )         (1,740 )         (1,611 )         (92,319 )         (6,959 ) 
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Net increase (decrease)

        61,862          316          1,036          436          (52,932 )         40,912  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  
       (1) For the period June 5, 2019 to December 31, 2019.  

 

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, 2020 AND 2019

 

 

    INVESTMENT DIVISIONS  
         PUTNAM VT
    INTERNATIONAL    
VALUE FUND		        PUTNAM VT    
SMALL CAP
VALUE FUND		            PUTNAM VT    
SUSTAINABLE
FUTURE FUND
         2020    2020        2019        2020        2019
         (1)                                    

INCREASE (DECREASE) IN NET ASSETS:

                         

OPERATIONS:

                         

Net investment income (loss)

   $      -     $      37     $      26     $      546     $      868  

Net realized gain (loss) on investments

        159          (92 )         (33,381 )         12,259          23,233  

Change in net unrealized appreciation (depreciation) on investments

        2,865          320          42,499          68,145          3,659  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from operations

        3,024          265          9,144          80,950          27,760  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CONTRACT TRANSACTIONS:

                         

Proceeds from units sold

        379          12          -          34,650          23,448  

Transfers for contract benefits and terminations

        (33 )         (31 )         (22,076 )         (1,969 )         (2,134 ) 

Net transfers

        244,021          1,510          (63,704 )         (13,599 )         2,810  

Contract maintenance charges

                  (7 )              (36 ) 

Other, net

        -          -          -          -          -  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Increase (decrease) in net assets resulting from contract transactions

        244,366          1,492          (85,787 )         19,082          24,088  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Total increase (decrease) in net assets

        247,390          1,757          (76,643 )         100,032          51,848  

NET ASSETS:

                         

Beginning of period

             1,792          78,435          139,795          87,947  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

End of period

   $      247,390     $      3,549     $      1,792     $      239,827     $      139,795  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

CHANGES IN UNITS OUTSTANDING:

                         

Units issued

        18,844          168          140          1,143          810  

Units redeemed

        (114 )         (43 )         (7,548 )         (760 )         (241 ) 
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

Net increase (decrease)

        18,731          125          (7,408 )         383          569  
    

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

     

 

 

 

 

(1)   For the period of April 16, 2020 to December 31, 2020

 

 

 

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, 2020 AND 2019

 

 

   

INVESTMENT DIVISIONS

  
             ROYCE CAPITAL FUND -    
SMALL-CAP PORTFOLIO		              T. ROWE PRICE BLUE CHIP GROWTH    
PORTFOLIO CLASS II		              VAN ECK VIP EMERGING MARKETS    
FUND		  
         2020          2019          2020          2019          2020          2019  

INCREASE (DECREASE) IN NET ASSETS:

                              

OPERATIONS:

                              

Net investment income (loss)

   $      543     $      652     $      -     $      -     $      1,269     $      238  

Net realized gain (loss) on investments

        (32,621 )         (132,075 )         377,870          168,416          1,999          1,261  

Change in net unrealized appreciation (depreciation) on investments

        (5,446 )         272,278          (13,258 )         317,302          8,322          12,579  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Increase (decrease) in net assets resulting from operations

        (37,525 )         140,855          364,613          485,718          11,590          14,078  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

CONTRACT TRANSACTIONS:

                              

Proceeds from units sold

        -          -          332,771          41,731          2,500          2,500  

Transfers for contract benefits and terminations

        (1,352 )         (5,512 )         (45,222 )         (32,925 )         (850 )         (1,054 ) 

Net transfers

        (49,386 )         (950,696 )         (534,863 )         52,291          (240 )         -  

Contract maintenance charges

        (29 )         (91 )              (563 )              (7 ) 

Other, net

        -          (29,880 )         -          -          -          -  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Increase (decrease) in net assets resulting from contract transactions

        (50,768 )         (986,179 )         (247,313 )         60,534          1,410          1,439  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Total increase (decrease) in net assets

        (88,293 )         (845,324 )         117,300          546,252          12,999          15,517  

NET ASSETS:

                              

Beginning of period

        162,366          1,007,690          2,132,838          1,586,586          61,104          45,587  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

End of period

   $      74,073     $      162,366     $      2,250,138     $      2,132,838     $      74,103     $      61,104  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

CHANGES IN UNITS OUTSTANDING:

                              

Units issued

        10          42          57,523          25,706          64          55  

Units redeemed

        (3,846 )         (48,023 )         (81,708 )         (21,592 )         (25 )         (25 ) 
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Net increase (decrease)

        (3,836 )         (47,981 )         (24,185 )         4,114          40          30  
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

 

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, 2020 AND 2019

 

 

   

INVESTMENT DIVISIONS

  
             VAN ECK VIP GLOBAL HARD ASSETS    
FUND		              VICTORY RS SMALL CAP    
GROWTH EQUITY VIP		  
         2020          2019          2020          2019  

INCREASE (DECREASE) IN NET ASSETS:

                    

OPERATIONS:

                    

Net investment income (loss)

   $      9,573     $      -     $      -     $      -  

Net realized gain (loss) on investments

        (59,850 )         (7,843 )         2,086          4,955  

Change in net unrealized appreciation (depreciation) on investments

        300,382          105,758          2,166          (1,822 ) 
    

 

 

       

 

 

       

 

 

       

 

 

  

Increase (decrease) in net assets resulting from operations

        250,105          97,915          4,252          3,133  
    

 

 

       

 

 

       

 

 

       

 

 

  

CONTRACT TRANSACTIONS:

                    

Proceeds from units sold

        7,132          13,020          12          -  

Transfers for contract benefits and terminations

        (8,437 )         (10,485 )         (356 )         (358 ) 

Net transfers

        (86,140 )         132,763          (401 )      

Contract maintenance charges

             (229 )         (19 )         (25 ) 

Other, net

        -          -          -          -  
    

 

 

       

 

 

       

 

 

       

 

 

  

Increase (decrease) in net assets resulting from contract transactions

        (87,445 )         135,069          (763 )         (383 ) 
    

 

 

       

 

 

       

 

 

       

 

 

  

Total increase (decrease) in net assets

        162,660          232,984          3,488          2,750  

NET ASSETS:

                    

Beginning of period

        1,012,482          779,498          9,009          6,259  
    

 

 

       

 

 

       

 

 

       

 

 

  

End of period

   $      1,175,142     $      1,012,482     $      12,497     $      9,009  
    

 

 

       

 

 

       

 

 

       

 

 

  

CHANGES IN UNITS OUTSTANDING:

                    

Units issued

        4,543          3,813          131          1,776  

Units redeemed

        (5,120 )         (686 )         (170 )         (1,596 ) 
    

 

 

       

 

 

       

 

 

       

 

 

  

Net increase (decrease)

        (577 )         3,127          (39 )         180  
    

 

 

       

 

 

       

 

 

       

 

 

  

 

 

The accompanying notes are an integral part of these financial statements.    (Continued)

COLI VUL-2 SERIES ACCOUNT OF

GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2020

 

 

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 Company’s other assets and liabilities. The portion of the Series Account’s 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 outbreak of the novel strain of coronavirus, specifically identified as ‘COVID-19’, has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods and social distancing, have caused material disruption to businesses globally resulting in an economic slowdown. Global equity markets have experienced significant volatility and weakness. Governments and central banks have reacted with significant monetary and fiscal interventions designed to stabilize economic conditions. The duration and impact of the COVID-19 outbreak is unknown at this time, as is the efficacy of the government and central bank interventions. It is not possible to reliably estimate the length and severity of these developments and the impact on the financial results and condition of the Investment Divisions in future periods.

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 Account’s 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 entity’s own assumptions and would be based on the best information available under the circumstances.

As of December 31, 2020, 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.

Proceeds from Units Sold

Proceeds from Units Sold 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.

Other, Net

The amount reported as Other, Net on the Statement of Changes in Net Assets of the applicable Investment Divisions consist of loans from participant accounts less the loan origination fee, and loan repayments to participant accounts.

 

2.

PURCHASES AND SALES OF INVESTMENTS

The cost of purchases and proceeds from sales of investments for the year ended December 31, 2020 were as follows:

Investment Division

          Purchases                      Sales          

Alger Small Cap Growth Portfolio

    $ 108,714          $ 222,396      

American Century Investments VP Capital Appreciation Fund

      39,799            5,986      

American Century Investments VP Inflation Protection Fund

      3,040,521            521,583      

American Century Investments VP International Fund

      10,216            19,222      

American Century Investments VP Mid Cap Value Fund

      1,500,310            25,670      

American Century Investments VP Ultra Fund

      12            13      

American Century Investments VP Value Fund

      760,531            600,875      

American Funds IS Global Small Capitalization Fund

      33,216            44,318      

American Funds IS Growth and Income Fund

      305            8      

American Funds IS Growth Fund

      849,359            1,290,393      

American Funds IS International Fund

      695,021            129,653      

American Funds IS New World Fund

      418,567            266,912      

Blackrock Global Allocation VI Fund

      151,945            722      

Blackrock High Yield VII

      29,663            12      

BNY Mellon Stock Index Fund, Inc.

      7,981,067            15,935,607      

BNY Mellon VIF International Equity Portfolio

      2,896            27,670      

Clearbridge Variable Mid Cap Portfolio

      67,367            48,213      

Clearbridge Variable Small Cap Growth Portfolio

      410,644            219,130      

Columbia Variable Portfolio - Small Cap Value Fund

      85,657            37,030      

Davis Financial Portfolio

      8,311            24,116      

Davis Value Portfolio

      0            1,958      

Delaware VIP International Series

      429,278            249,323      

Delaware VIP International Value Equity Series

      285,415            336,749      

Delaware VIP Small Cap Value Series

      313,137            88,623      

DWS CROCI® U.S. VIP

      25,994            109,053      

DWS High Income VIP

      60,919            17,626      

DWS Small Cap Index VIP

      2,300,352            1,276,648      

DWS Small Mid Cap Value VIP

      522,636            867,256      

Eaton Vance VT Floating Rate Income

      74,137            11      

Federated Kaufmann Fund II

      61,235            52,422      

Fidelity VIP Contrafund Portfolio

      317,912            116,535      

Fidelity VIP Emerging Markets Portfolio

      103,788            12      

Fidelity VIP Growth Portfolio

      256,897            1,651,746      

Fidelity VIP Investment Grade Bond Portfolio

      67,054            71,608      

Fidelity VIP Mid Cap Portfolio

      70,933            379,768      

Goldman Sachs VIT Mid Cap Value Fund

      321            33,668      

Goldman Sachs VIT Multi-Strategy Alternatives Portfolio

      3,234            391      

Great-West Aggressive Profile Fund

      129,300            119,854      

Great-West Ariel Mid Cap Value Fund

      104,638            47,177      

Great-West Bond Index Fund

      1,752,790            414,945       

Investment Division

          Purchases                      Sales          

Great-West Conservative Profile Fund

      173,608            226,758      

Great-West Core Bond Fund

      196,439            113,440      

Great-West Emerging Markets Equity Fund

      120,183            41,382      

Great-West Global Bond Fund

      456,403            1,479,386      

Great-West Government Money Market Fund

      19,163,461            9,793,953      

Great-West Inflation Protected Securities Investor

      658,794            12      

Great-West International Index Fund

      3,115,798            24,986      

Great-West International Value Fund

      579,194            866,671      

Great-West Large Cap Growth Fund

      205,943            85,968      

Great-West Large Cap Value Fund Investor II Class

      468,226            527,642      

Great-West Lifetime 2015 Fund

      267,373            149,314      

Great-West Lifetime 2020 Fund

      166,764            33,001      

Great-West Lifetime 2025 Fund

      1,324,785            991,340      

Great-West Lifetime 2030 Fund

      1,192,150            672,023      

Great-West Lifetime 2035 Fund

      627,941            269,313      

Great-West Lifetime 2040 Fund

      910,365            348,860      

Great-West Lifetime 2045 Fund

      695,034            299,415      

Great-West Lifetime 2050 Fund

      194,335            28,706      

Great-West Lifetime 2055 Fund

      119,609            255,932      

Great-West Mid Cap Value Fund

      57,594            29,824      

Great-West Moderate Profile Fund

      34,808            30,876      

Great-West Moderately Aggressive Profile Fund

      14,601            44,503      

Great-West Moderately Conservative Profile Fund

      1,964,409            735,600      

Great-West Multi-Sector Bond Fund

      162,476            337,252      

Great-West Real Estate Index Fund

      209,089            131,028      

Great-West S&P Mid Cap 400® Index Fund

      6,892,448            1,229,139      

Great-West S&P Small Cap 600® Index Fund

      506,043            151,922      

Great-West Short Duration Bond Fund

      342,812            1,564,932      

Great-West Small Cap Growth

      12            13      

Great-West Small Cap Value Fund

      192,095            222,887      

Great-West T. Rowe Price Mid Cap Growth Fund

      602,667            1,574,284      

Great-West U.S. Government Securities Fund

      688,198            181,974      

Invesco Oppenheimer V.I. Main Street Small Cap Fund

      113,162            316,709      

Invesco V.I. Core Equity Fund

      2,885            4,077      

Invesco V.I. Global Real Estate Fund

      341,498            30,757      

Invesco V.I. Health Care Fund

      5,091            7,209      

Invesco V.I. International Growth Fund

      326,695            650,853      

Invesco V.I. Mid Cap Core Equity Fund

      146,080            42,276      

Invesco V.I. Technology Fund

      12,930            16,140      

Janus Henderson VIT Balanced Portfolio

      1,180,468            719,107      

Janus Henderson VIT Enterprise Portfolio

      364,583            257,120       

Investment Division

            Purchases                      Sales          

Janus Henderson VIT Flexible Bond Portfolio

      1,943,203            1,260,323      

Janus Henderson VIT Forty Portfolio

      717,537            1,279,564      

Janus Henderson VIT Global Research Portfolio

      132,906            637,974      

Janus Henderson VIT Global Technology Portfolio

      778,336            847,548      

Janus Henderson VIT Overseas Portfolio

      377            947      

Lord Abbett Series Developing Growth Portfolio

      6,272            9,545      

Lord Abbett Series Total Return Portfolio

      16,937            3,878      

MFS VIT Growth Series

      8,333            1,862      

MFS VIT II International Growth Portfolio

      545,231            108,481      

MFS VIT III Blended Research Small Cap Equity Portfolio

      9,829            1,074      

MFS VIT III Global Real Estate Portfolio

      47,660            16,096      

MFS VIT III Mid Cap Value Portfolio

      3,226            666      

MFS VIT Mid Cap Growth Series

      519,452            77,328      

MFS VIT Research Series

      9,391            6,441      

MFS VIT Total Return Bond Series

      433,634            499,768      

MFS VIT Value Series

      131,083            32,791      

Neuberger Berman AMT Mid Cap Growth Portfolio

      1,955            6,731      

Neuberger Berman AMT Mid Cap Intrinsic Value Portfolio

      135,400            2,103      

Neuberger Berman AMT Sustainable Equity Portfolio

      16,012            18,032      

Pimco VIT Global Bond Opportunities Portfolio (Unhedged)

      315,877            3,773      

Pimco VIT High Yield Portfolio

      92,964            5,545      

Pimco VIT Low Duration Portfolio

      351,682            248,843      

Pimco VIT Real Return Portfolio

      161,120            119,914      

Pimco VIT Total Return Portfolio

      671,880            302,727      

Pioneer Real Estate Shares VCT Portfolio

      38,641            9,003      

Putnam VT Research IA

      12            13      

Putnam VT Equity Income Fund

      429,437            106,169      

Putnam VT Global Asset Allocation Fund

      8,235            876      

Putnam VT Global Equity Fund

      6,094            13,148      

Putnam VT Growth Opportunities Fund

      1,657,989            64,091      

Putnam VT High Yield Fund

      102,729            37,624      

Putnam VT Income Fund

      508,567            1,117,283      

Putnam VT International Value Fund

      245,593            1,227      

Putnam VT Small Cap Value Fund

      1,933            405      

Putnam VT Sustainable Future Fund

      67,325            38,512      

Royce Capital Fund - Small-Cap Portfolio

      0            50,768      

T. Rowe Price Blue Chip Growth Portfolio II

      1,285,527            1,532,840      

Van Eck VIP Emerging Markets Fund

      5,508            921      

Van Eck VIP Global Hard Assets Fund

      141,251            219,123      

Victory RS Small Cap Growth Equity VIP

      1,641            2,404       

3.

EXPENSES AND RELATED PARTY TRANSACTIONS

Cost of Insurance

The Company deducts from each participant’s 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 participant’s 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 participant’s 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 participant’s 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 participant’s 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 participant’s 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 participant’s 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.

SUBSEQUENT EVENTS

Management has reviewed all events subsequent to December 31, 2020 including the estimates inherent in the process of preparing these financial statements through the date the financial statements were issued, May 10, 2021. No subsequent events requiring adjustments or disclosures have occurred.

 

5.

FINANCIAL HIGHLIGHTS

For each Investment Division, the accumulation units outstanding, net assets, investment income ratio, 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 Ratio represents 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. As the total returns for the Investment Divisions are presented as a range of minimum to maximum values, based on the product grouping representing the minimum and maximum expense ratio amounts, some individual contract total returns are not within the ranges presented.

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 invest.

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

                 

2020

      21        $              358.01         $                737         1.12 %          0.00 %          67.18  %    

2019

      3        $              214.15         $                536         0.00 %          0.00 %          29.34  %    

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  %    

AMERICAN CENTURY INVESTMENTS VP CAPITAL APPRECIATION FUND

                 

2020

      19        $                25.58         $                486         0.00 %          0.00 %          42.42  %    

2019

      19        $                17.96         $                347         0.00 %          0.00 %          35.56  %    

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  %    

AMERICAN CENTURY INVESTMENTS VP INFLATION PROTECTION FUND

                 

2020

      292        $                12.09         $             3,524         1.88 %          0.00 %          9.57  %    

2019

      68        $                11.03         $                754         2.34 %          0.00 %          8.90  %    

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

                 

2020

      3        $                19.80         $                 67         0.60 %          0.00 %          25.89  %    

2019

      4        $                15.73         $                 59         0.89 %          0.00 %          28.42  %    

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) %    

AMERICAN CENTURY INVESTMENTS VP MID CAP VALUE FUND

                 

(Effective date 04/28/2017)

                 

2020

      133        $                12.33         $            1,641         2.97 %          0.00 %          1.19  %    

2019

      3        $                12.18         $                 37         1.58 %          0.00 %          29.15  %    

AMERICAN CENTURY INVESTMENTS VP VALUE FUND 2020

      24        $                51.13         $            1,234         2.20 %          0.00 %          0.97  %    

2019

      24        $                50.64         $            1,202         2.12 %          0.00 %          27.03  %    

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  %    

AMERICAN FUNDS IS GLOBAL SMALL CAPITALIZATION FUND

                 

2020

      8        $                24.46         $                201         0.18 %          0.00 %          29.74  %    

2019

      9        $                18.85         $                177         0.18 %          0.00 %          31.52  %    

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  %    

AMERICAN FUNDS IS GROWTH FUND

                 

2020

      95        $                48.61         $             4,622         0.32 %          0.00 %          52.10  %    

2019

      114        $                31.96         $             3,640         0.83 %          0.00 %          30.77  %    

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  %    

 

*The Investment Division has units that round to less than 1,000 units.    (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 AND INCOME FUND

                 

(Effective date 4/30/2018)

                 

2020

      0      *      $            13.65          $                   3          1.46 %          0.00 %          13.55  %    

AMERICAN FUNDS IS INTERNATIONAL FUND

                 

2020

      64        $            17.57          $            1,132          0.77 %          0.00 %          14.00  %    

2019

      33        $            15.41          $               501          1.06 %          0.00 %          22.89  %    

2018

      117        $            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  %    

AMERICAN FUNDS IS NEW WORLD FUND

                 

2020

      69        $            31.32          $            2,150          0.08 %          0.00 %          23.60  %    

2019

      64        $            25.34          $            1,633          0.94 %          0.00 %          29.14  %    

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  %    

BLACKROCK GLOBAL ALLOCATION VI FUND

                 

(Effective date 04/29/2016)

                 

2020

      10        $            15.58          $               158          1.56 %          0.00 %          20.96  %    

2019

      0      *      $            12.88          $                   5          1.11 %          0.00 %          17.99  %    

2018

      2        $            10.91          $                 21          0.99 %          0.00 %          (7.34) %    

BLACKROCK HIGH YIELD V.I. I

                 

(Effective date 06/20/2019)

                 

2020

      3        $            11.26          $                 30          0.00 %          0.00 %          7.30  %    

BNY MELLON STOCK INDEX FUND

                 

2020

      692        $            36.49          $          25,248          1.66 %          0.00 %          18.01  %    

2019

      988        $            30.92          $          30,559          1.72 %          0.00 %          31.18  %    

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  %    

CLEARBRIDGE VARIABLE MID CAP PORTFOLIO

                 

(Effective date 04/29/2016)

                 

2020

      9        $            16.82          $               155          0.31 %          0.00 %          15.34  %    

2019

      8        $            14.58          $               121          0.85 %          0.00 %          32.95  %    

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)

                 

2020

      18        $            26.47          $               489          0.00 %          0.00 %          43.26  %    

2019

      11        $            18.48          $               211          0.00 %          0.00 %          26.87  %    

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

                 

2020

      7        $            35.67          $               154          0.74 %          0.00 %          8.79  %    

2019

      4        $            32.79          $               141          0.64 %          0.00 %          21.34  %    

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  %    

DAVIS FINANCIAL PORTFOLIO

                 

2020

      1        $            25.89          $                 37          1.57 %          0.00 %          (5.99) %    

2019

      2        $            27.54          $                 58          1.57 %          0.00 %          25.86  %    

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  %    

 

*The Investment Division has units that round to less than 1,000 units.    (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 VALUE PORTFOLIO

                  

2020

      4         $            31.94         $               139         0.81 %           0.00 %           11.73  %     

2019

      4         $            28.59         $               127         1.65 %           0.00 %           31.16  %     

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  %     

DELAWARE VIP INTERNATIONAL SERIES

                  

(Effective date 12/11/2020)

                  

2020

      18         $            10.18         $               183         0.00 %           0.00 %           1.81  %     

DELAWARE VIP SMALL CAP VALUE SERIES

                  

2020

      25         $            14.84         $               369         1.10 %           0.00 %           (2.19) %     

2019

      9         $            15.17         $               142         0.90 %           0.00 %           27.72  %     

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  %     

DWS CROCI® U.S. VIP

                  

2020

      8         $            16.86         $               143         2.02 %           0.00 %           (12.14) %     

2019

      15         $            19.19         $               285         1.97 %           0.00 %           32.95  %     

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) %     

DWS HIGH INCOME VIP

                  

2020

      8         $            22.01         $               168         5.16 %           0.00 %           6.22  %     

2019

      6         $            20.72         $               119         6.03 %           0.00 %           15.69  %     

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  %     

DWS SMALL CAP INDEX VIP

                  

2020

      265         $            32.48         $            8,594         1.30 %           0.00 %           19.42  %     

2019

      268         $            27.20         $            7,280         1.06 %           0.00 %           25.22  %     

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  %     

DWS SMALL MID CAP VALUE VIP

                  

2020

      49         $            26.80         $            1,322         1.61 %           0.00 %           (0.79) %     

2019

      65         $            27.01         $            1,768         0.72 %           0.00 %           21.51  %     

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  %     

EATON VANCE VT FLOATING-RATE INCOME FUND

                  

(Effective date 04/29/2016)

                  

2020

      6         $            11.89         $                 74         0.27 %           0.00 %           2.02  %     

FEDERATED HERMES KAUFMANN FUND II

                  

2020

      6         $            45.93         $               262         0.00 %           0.00 %           28.81  %     

2019

      6         $            35.66         $               207         0.00 %           0.00 %           33.82  %     

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  %     

FIDELITY VIP CONTRAFUND PORTFOLIO

                  

2020

      35         $            56.03         $             1,949        0.04 %           0.08 %           30.22  %     

2019

      31         $            43.03         $             1,336        0.23 %           0.00 %           31.28  %     

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  %     

 

*The Investment Division has units that round to less than 1,000 units.    (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 EMERGING MARKETS PORTFOLIO

                  

(Effective date 06/20/2019)

                  

2020

      7         $            14.09         $               104         0.00 %           0.00 %           30.88  %     

FIDELITY VIP GROWTH PORTFOLIO

                  

2020

      1         $            44.59         $                 48         0.05 %           0.00 %           43.53  %     

2019

      36         $            31.07         $            1,109         0.05 %           0.00 %           33.98  %     

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  %     

FIDELITY VIP INVESTMENT GRADE BOND PORTFOLIO

                  

2020

      15         $            25.73         $               394         2.21 %           0.00 %           9.16  %     

2019

      16         $            23.57         $               370         2.54 %           0.00 %           9.40  %     

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  %     

FIDELITY VIP MID CAP PORTFOLIO

                  

2020

      8         $            68.18         $               519         0.36 %           0.00 %           17.86  %     

2019

      13         $            57.85         $               759         0.56 %           0.00 %           23.17  %     

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  %     

GOLDMAN SACHS VIT MID CAP VALUE FUND

                  

2020

      4         $            19.55         $                 76         0.68 %           0.00 %           8.38  %     

2019

      6         $            18.04         $               103         0.78 %           0.00 %           31.52  %     

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  %     

GOLDMAN SACHS VIT MULTI-STRATEGY ALTERNATIVES PORTFOLIO

                  

(Effective date 04/29/2016)

                  

2020

      1         $            11.61         $                   9         2.58 %           0.00 %           6.72  %     

2019

      1         $            10.87         $                   5         2.67 %           0.00 %           8.82  %     

GREAT-WEST AGGRESSIVE PROFILE FUND

                  

 (Effective date 04/28/2017)

                  

2020

      43         $            14.27         $               618         1.71 %           0.00 %           12.03  %     

2019

      44         $            12.74         $               566         1.29 %           0.00 %           26.10  %     

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

                  

2020

      6         $            60.70         $               345         2.85 %           0.00 %           9.09  %     

2019

      5         $            55.64         $               262         1.32 %           0.00 %           24.32  %     

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  %     

GREAT-WEST BOND INDEX FUND

                  

2020

      235         $            16.47         $            3,872         1.81 %           0.00 %           7.18  %     

2019

      155         $            15.37         $            2,378         1.08 %           0.00 %           8.09  %     

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  %     

 

   (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)

                 

2020

      90        $            12.19         $              1,096         2.14 %          0.00 %          8.22  %    

2019

      97        $            11.26         $              1,087         1.72 %          0.00 %          11.54  %    

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

                 

2020

      164        $            16.97         $              2,776         2.80 %          0.00 %          8.04  %    

2019

      162        $            15.71         $              2,541         2.43 %          0.00 %          9.19  %    

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  %    

GREAT-WEST EMERGING MARKETS EQUITY FUND

                 

(Effective date 04/30/2018)

                 

2020

      8        $            12.00         $                   96         9.53 %          0.00 %          19.59  %    

2019

      0    *      $            10.03         $                     3         0.98 %          0.00 %          21.67  %    

2018

      0    *      $              8.24         $                     2         0.82 %          0.00 %          (17.55) %    

GREAT-WEST GLOBAL BOND FUND

                 

2020

      109        $            15.57         $              1,696         1.02 %          0.00 %          5.35  %    

2019

      182        $            14.78         $              2,696         3.22 %          0.00 %          4.07  %    

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  %    

GREAT-WEST GOVERNMENT MONEY MARKET FUND

                 

2020

      1,744        $            13.52         $            23,577         0.23 %          0.00 %          0.28  %    

2019

      1,054        $            13.48         $            14,207         1.72 %          0.00 %          1.76  %    

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  %    

GREAT-WEST INFLATION-PROTECTED SECURITIES FUND

                 

(Effective date 04/30/2018)

                 

2020

      58        $            11.39         $                 660         0.00 %          0.00 %          7.57  %    

GREAT-WEST INTERNATIONAL INDEX FUND

                 

2020

      225        $            14.54         $              3,267         17.50 %          0.00 %          7.52  %    

2019

      0    *      $            13.54         $                     1         0.50 %          0.00 %          21.25  %    

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  %    

GREAT-WEST INTERNATIONAL VALUE FUND

                 

2020

      340        $            15.56         $              5,286         1.06 %          0.00 %          9.76  %    

2019

      363        $            14.18         $              5,149         1.25 %          0.00 %          22.07  %    

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  %    

GREAT-WEST LARGE CAP GROWTH FUND

                 

2020

      3        $            60.76         $                 180         4.14 %          0.00 %          41.45  %    

2019

      0    *      $            42.94         $                   19         0.09 %          0.00 %          36.21  %    

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  %    

 

*The Investment Division has units that round to less than 1,000 units.    (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 VALUE FUND INVESTOR II CLASS

                  

(Effective date 10/25/2019)

                  

2020

      216         $            11.11         $            2,403         1.26 %          0.00 %          3.90  %    

2019

      228         $            10.69         $            2,436         0.60 %          0.00 %          6.91  %    

GREAT-WEST LIFETIME 2015 FUND

                  

(Effective date 04/21/2016)

                  

2020

      115         $            14.16         $            1,625         1.99 %          0.00 %          10.98  %    

2019

      108         $            12.76         $            1,381         1.35 %          0.00 %          15.17  %    

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)

                  

2020

      47         $            14.52         $               675         2.33 %          0.00 %          11.29  %    

2019

      38         $            13.05         $               492         1.84 %          0.00 %          16.44  %    

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)

                  

2020

      317         $            14.97         $            4,743         2.09 %          0.00 %          12.24  %    

2019

      305         $            13.34         $            4,074         1.60 %          0.00 %          18.01  %    

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)

                  

2020

      153         $            15.54         $            2,377         2.38 %          0.00 %          12.59  %    

2019

      119         $            13.80         $            1,637         2.07 %          0.00 %          20.01  %    

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)

                  

2020

      110         $            15.99         $            1,757         2.31 %          0.00 %          13.27  %    

2019

      89         $            14.12         $            1,250         1.50 %          0.00 %          22.17  %    

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)

                  

2020

      87         $            16.43         $            1,424         2.85 %          0.00 %          13.61  %    

2019

      53         $            14.46         $               771         1.95 %          0.00 %          23.82  %    

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)

                  

2020

      71         $            16.46         $            1,170         2.47 %          0.00 %          13.92  %    

2019

      47         $            14.45         $               675         1.58 %          0.00 %          24.59  %    

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  %    

 

*The Investment Division has units that round to less than 1,000 units.    (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)

                 

2020

      25        $            16.63         $               415        2.33 %          0.00 %          13.96  %    

2019

      15        $            14.59         $               213        1.53 %          0.00 %          24.82  %    

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)

                 

2020

      24        $            16.45         $               394        1.19 %          0.00 %          13.95  %    

2019

      34        $            14.44         $               485        2.24 %          0.00 %          24.69  %    

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 SMALL CAP VALUE FUND

                 

2020

      23        $            45.16         $            1,032        0.00 %          0.00 %          3.20  %    

2019

      22        $            43.76         $               980        0.00 %          0.00 %          24.67  %    

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  %    

GREAT-WEST MID CAP VALUE FUND

                 

2020

      8        $            13.91         $               105        0.92 %          0.00 %          (0.35) %    

2019

      6        $            13.96         $                 79        0.17 %          0.00 %          20.49  %    

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)

                 

2020

      26        $            13.23         $               338        1.59 %          0.00 %          11.23  %    

2019

      26        $            11.89         $               311        2.04 %          0.00 %          17.52  %    

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)

                 

2020

      6        $            13.60         $                 83        2.01 %          0.00 %          11.77  %    

2019

      9        $            12.17         $               109        1.69 %          0.00 %          20.35  %    

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)

                 

2020

      111        $            12.67         $            1,401        1.78 %          0.00 %          9.52  %    

2019

      12        $            11.57         $               133        1.97 %          0.00 %          14.45  %    

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

                 

2020

      9        $            46.33         $               403        2.88 %          0.00 %          9.09  %    

2019

      13        $            42.47         $               566        1.72 %          0.00 %          11.74  %    

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  %    

 

*The Investment Division has units that round to less than 1,000 units.    (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

                  

2020

      22         $            13.53         $               301         1.62 %          0.00 %          (11.57) %    

2019

      18         $            15.30         $               269         0.95 %          0.00 %          22.40  %    

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

                  

2020

      353         $            21.92         $            7,744         3.45 %          0.00 %          13.10  %    

2019

      84         $            19.38         $            1,621         0.32 %          0.00 %          25.49  %    

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  %    

GREAT-WEST S&P SMALL CAP 600® INDEX FUND

                  

(Effective date 02/29/2016)

                  

2020

      25         $            18.49         $               469         2.82 %          0.00 %          10.93  %    

2019

      2         $            16.67         $                 40         0.89 %          0.00 %          22.36  %    

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

                  

2020

      447         $            15.55         $            6,957         1.96 %          0.00 %          4.65  %    

2019

      534         $            14.86         $            7,942         2.07 %          0.00 %          5.40  %    

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  %    

GREAT-WEST T. ROWE PRICE MID CAP GROWTH FUND

                  

2020

      42         $            69.13         $            2,882         0.00 %          0.00 %          24.10  %    

2019

      62         $            55.70         $            3,447         0.01 %          0.00 %          31.28  %    

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  %    

GREAT-WEST U.S. GOVERNMENT SECURITIES FUND

                  

2020

      3,947         $            24.88         $            3,947         0.91 %          0.00 %          5.86  %    

2019

      140         $            23.50         $            3,279         1.55 %          0.00 %          6.12  %    

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  %    

INVESCO OPPENHEIMER V.I. MAIN STREET SMALL CAP FUND

                  

2020

      346         $            17.14         $               346         0.76 %          0.00 %          19.89  %    

2019

      33         $            14.30         $               471         0.25 %          0.00 %          26.47  %    

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  %    

INVESCO V.I. CORE EQUITY FUND

                  

2020

      25         $            31.35         $                 25         1.44 %          0.00 %          13.87  %    

2019

      1         $            27.53         $                 22         0.94 %          0.00 %          28.96  %    

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  %    

INVESCO V.I. GLOBAL REAL ESTATE FUND

                  

2020

      1,418         $            39.83         $            1,418         5.94 %          0.00 %          (12.32) %    

2019

      27         $            45.43         $            1,224         4.23 %          0.00 %          23.00  %    

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  %    

 

   (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. HEALTH CARE FUND

                 

2020

      71           $             46.61           $ 58         0.35  %        0.00 %          14.44  %    

2019

      2           $ 40.73           $ 64         0.03  %        0.00 %          32.50  %    

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) %    

INVESCO V.I. INTERNATIONAL GROWTH FUND

                 

2020

      175           $ 22.34           $             3,913         2.55  %        0.00 %          13.98  %    

2019

      193           $ 19.60           $ 3,789         1.61  %        0.00 %          28.57  %    

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) %    

INVESCO V.I. MID CAP CORE EQUITY FUND

                 

2020

      13           $ 30.84           $ 395         0.87  %        0.00 %          9.27  %    

2019

      9           $ 28.22           $ 247         0.51  %        0.00 %          25.28  %    

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  %    

INVESCO V.I. TECHNOLOGY FUND

                 

2020

      3           $ 48.87           $ 129         0.00  %        0.00 %          46.10  %    

2019

      3           $ 33.45           $ 94         0.00  %        0.00 %          35.88  %    

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) %    

JANUS HENDERSON VIT BALANCED PORTFOLIO

                 

2020

      79           $ 43.34           $ 3,426         2.68  %        0.00 %          14.32  %    

2019

      71           $ 37.91           $ 2,698         2.00  %        0.00 %          22.59  %    

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  %    

JANUS HENDERSON VIT ENTERPRISE PORTFOLIO

                 

(Effective date 04/28/2017)

                 

2020

      41           $ 18.81           $ 776         0.13  %        0.00 %          19.50  %    

2019

      39           $ 15.74           $ 611         0.13  %        0.00 %          35.48  %    

JANUS HENDERSON VIT FLEXIBLE BOND PORTFOLIO

                 

2020

      87           $ 31.88           $ 2,760         3.27  %        0.00 %          10.48  %    

2019

      64           $ 28.86           $ 1,853         3.61  %        0.00 %          9.57  %    

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  %    

JANUS HENDERSON VIT FORTY PORTFOLIO

                 

2020

      32           $ 87.05           $ 2,763         0.80  %        0.00 %          39.40  %    

2019

      41           $ 62.45           $ 2,541         0.16  %        0.00 %          37.16  %    

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  %    

JANUS HENDERSON VIT GLOBAL RESEARCH PORTFOLIO

                 

2020

      16           $ 20.03           $ 319         0.70  %        0.00 %          20.08  %    

2019

      44           $ 16.68           $ 734         0.95  %        0.00 %          29.04  %    

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  %    

 

   (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 GLOBAL TECHNOLOGY AND INNOVATION PORTFOLIO

                 

2020

      25        $            92.37         $            2,347         0.00 %          0.00 %          51.18  %    

2019

      29        $            61.10         $            1,764         0.41 %          0.00 %          45.17  %    

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  %    

JANUS HENDERSON VIT OVERSEAS PORTFOLIO

                 

2020

      2        $            36.52         $                 70         1.50 %          0.00 %          16.28  %    

2019

      2        $            31.41         $                 62         1.92 %          0.00 %          27.02  %    

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) %    

LORD ABBETT SERIES DEVELOPING GROWTH PORTFOLIO

                 

2020

      8        $            26.47         $               222         0.00 %          0.00 %          72.57  %    

2019

      9        $            15.34         $               131         0.00 %          0.00 %          31.77  %    

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) %    

LORD ABBETT SERIES TOTAL RETURN PORTFOLIO

                 

(Effective date 04/30/2018)

                 

2020

      2        $            11.77         $                 21         3.76 %          0.00 %          7.43  %    

2019

      1        $            10.97         $                   7         3.00 %          0.00 %          8.41  %    

MFS VIT GROWTH SERIES

                 

(Effective date 04/30/2018)

                 

2020

      1        $            17.65         $                 18         0.00 %          0.00 %          31.90  %    

2019

      1        $            13.38         $                   9         0.00 %          0.00 %          38.15  %    

MFS VIT II INTERNATIONAL GROWTH PORTFOLIO

                 

(Effective date 06/20/2019)

                 

2020

      38        $            12.48         $               470         0.00 %          0.00 %          15.84  %    

MFS VIT III BLENDED RESEARCH SMALL CAP EQUITY PORTFOLIO

                 

(Effective date 04/28/2017)

                 

2020

      1        $            13.60         $                 16         1.31 %          0.62 %          2.23  %    

2019

      0    *      $            13.30         $                   6         0.66 %          0.00 %          26.77  %    

MFS VIT III GLOBAL REAL ESTATE PORTFOLIO

                 

(Effective date 06/20/2019)

                 

2020

      3        $            13.52         $                 35         0.00 %          0.00 %          1.49  %    

MFS VIT III MID CAP VALUE PORTFOLIO

                 

(Effective date 04/28/2017)

                 

2020

      0    *      $            13.25         $                   6         1.99 %          0.00 %          3.87  %    

2019

      0    *      $            12.76         $                   3         1.42 %          0.00 %          31.11  %    

2018

      0    *      $              9.71         $                   2         0.00 %          0.00 %          (11.45) %    

MFS VIT MID CAP GROWTH SERIES

                 

(Effective date 04/28/2017)

                 

2020

      22        $            22.11         $               482         0.00 %          0.00 %          36.48  %    

MFS VIT RESEARCH SERIES

                 

2020

      3        $            19.41         $                 64         0.84 %          0.00 %          16.59  %    

2019

      3        $            16.65         $                 54         0.68 %          0.00 %          32.95 %    

MFS VIT TOTAL RETURN BOND SERIES

                 

(Effective date 04/28/2017)

                 

2020

      359        $            12.11         $            4,348         3.69 %          0.00 %          8.52  %    

2019

      379        $            11.16         $            4,228         4.05 %          0.00 %          10.21  %    

2018

      90        $            10.13         $               908         3.33 %          0.00 %          (1.08) %    

2017

      85        $            10.24         $               866         3.32 %          0.00 %          2.42  %    

 

*The Investment Division has units that round to less than 1,000 units.    (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      

MFS VIT VALUE SERIES

                 

2020

      33        $            15.78         $               520         1.69 %          0.00 %          3.48  %    

2019

      29        $            15.25         $               436         2.34 %          0.00 %          29.80  %    

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 MID CAP GROWTH PORTFOLIO

                 

2020

      0    *      $            41.89         $                 16         0.00 %          0.00 %          39.98  %    

2019

      0    *      $            29.94         $                 15         0.00 %          0.00 %          32.75  %    

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  %    

NEUBERGER BERMAN AMT MID CAP INTRINSIC VALUE PORTFOLIO

                 

2020

      8        $            25.14         $               208         1.15 %          0.00 %          (2.61) %    

2019

      3        $            25.81         $                 65         0.21 %          0.00 %          16.75  %    

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  %    

NEUBERGER BERMAN AMT SUSTAINABLE EQUITY PORTFOLIO

                 

2020

      3        $            47.25         $               150         0.69 %          0.36 %          19.57  %    

2019

      3        $            39.52         $               125         0.63 %          0.00 %          25.88  %    

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  %    

PIMCO VIT GLOBAL BOND OPPORTUNITIES PORTFOLIO (UNHEDGED)

                 

(Effective date 04/28/2017)

                 

2020

      27        $            11.75         $               318         2.69 %          0.00 %          10.13  %    

2019

      1        $            10.67         $                   5         2.03 %          0.00 %          6.14  %    

PIMCO VIT HIGH YIELD PORTFOLIO

                 

2020

      11        $            28.43         $               313         5.30 %          0.00 %          5.76  %    

2019

      8        $            26.88         $               219         4.94 %          0.00 %          14.73  %    

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  %    

PIMCO VIT LOW DURATION PORTFOLIO

                 

2020

      510        $            16.26         $            8,296         1.30 %          0.00 %          2.96  %    

2019

      509        $            15.79         $            8,037         2.76 %          0.00 %          4.03  %    

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  %    

PIMCO VIT REAL RETURN PORTFOLIO

                 

2020

      24        $            20.90         $               499         1.53 %          0.00 %          11.73  %    

2019

      22        $            18.71         $               418         1.64 %          0.00 %          8.44  %    

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  %    

PIMCO VIT TOTAL RETURN PORTFOLIO

                 

2020

      209        $            23.01         $            4,803         2.31 %          0.00 %          8.62  %    

2019

      198        $            21.18         $            4,202         3.01 %          0.00 %          8.35  %    

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  %    

 

*The Investment Division has units that round to less than 1,000 units.    (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)

                 

2020

      6     $ 11.81      $ 75        1.88  %          0.00  %          (7.34) %    

2019

      6     $ 12.75      $ 71        2.32  %          0.00  %          28.17  %    

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

                 

2020

      19     $ 45.59      $ 879        1.89  %          0.00  %          6.07  %    

2019

      12     $ 42.98      $ 529        1.77  %          0.00  %          30.73  %    

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  %    

PUTNAM VT GLOBAL ASSET ALLOCATION FUND

                 

(Effective date 5/1/2015)

                 

2020

      1     $ 14.68      $ 14        1.34  %          0.00  %          12.58  %    

2019

      0   *    $ 13.05      $ 5        0.00  %          0.00  %          17.41  %    

PUTNAM VT GLOBAL EQUITY FUND

                 

(Effective date 5/1/2015)

                 

2020

      2     $ 14.70      $ 28        0.45  %          0.00  %          10.29  %    

2019

      2     $ 13.33      $ 33        0.00  %          0.00  %          26.92  %    

PUTNAM VT GROWTH OPPORTUNITIES FUND

                 

(Effective date 5/1/2015)

                 

2020

      62     $ 26.79      $ 1,666        0.15  %          0.00  %          39.09  %    

2019

      0   *    $ 19.25      $ 6        0.00  %          0.00  %          37.12  %    

PUTNAM VT HIGH YIELD FUND

                 

2020

      24     $ 27.21      $ 659        6.33  %          0.00  %          5.52  %    

2019

      23     $ 25.79      $ 598        5.99  %          0.00  %          14.55  %    

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  %    

PUTNAM VT INCOME FUND

                 

2020

      1     $ 12.58      $ 9        10.14  %          0.00  %          5.72  %    

2019

      54     $ 11.90      $ 638        3.45  %          0.00  %          11.90  %    

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 VALUE FUND

                 

(Effective date 4/29/2016)

                 

2020

      19     $ 13.21      $ 247        0.00  %          0.00  %          4.23  %    

PUTNAM VT SMALL CAP VALUE FUND

                 

2020

      0   *    $ 13.49      $ 4        1.42  %          0.00  %          4.23  %    

2019

      0   *    $ 12.99      $ 2        0.30  %          0.00  %          24.52  %    

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

                 

2020

      4     $ 67.72      $ 240        0.36  %          0.00  %          52.98  %    

2019

      3     $ 44.27      $ 140        0.77  %          0.00  %          30.32  %    

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  %    

ROYCE CAPITAL FUND - SMALL-CAP PORTFOLIO

                 

2020

      4     $ 19.92      $ 74        0.70  %          0.00  %          (7.33) %    

2019

      8     $ 21.49      $ 162        0.18  %          0.00  %          18.43  %    

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  %    

 

*The Investment Division has units that round to less than 1,000 units.    (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      

T. ROWE PRICE BLUE CHIP GROWTH PORTFOLIO II

                  

2020

      90          $             25.06          $             2,250        0.00  %        0.00  %        33.92  %  

2019

      114          $ 18.71          $ 2,133        0.00  %        0.00  %        29.58  %  

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

                  

2020

      1          $ 62.26          $ 74        2.28  %        0.00  %        17.26  %  

2019

      1          $ 53.09          $ 61        0.43  %        0.00  %        30.59  %  

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  %  

VAN ECK VIP GLOBAL HARD ASSETS FUND

                  

2020

      22          $ 53.51          $ 1,175        1.06  %        0.00  %        19.11  %  

2019

      23          $ 44.92          $ 1,012        0.00  %        0.00  %        11.87  %  

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  %  

VICTORY RS SMALL CAP GROWTH EQUITY VIP

                  

(Effective date 04/30/2018)

                  

2020

      14          $ 16.67          $ 14        0.00  %        0.00  %        38.04  %  

2019

      1          $ 12.08          $ 11        0.00  %        0.00  %        38.78  %  

2018

      1          $ 8.71          $ 6        0.00  %        0.00  %        (12.97) %  

 

   (Concluded)

PART C
OTHER INFORMATION
Item 26. Exhibits 
(a)
(b)
Custodian Agreements. None.
(c)
Underwriting Contracts.
 
(1)
 
(2)
(d)
Policies.
 
(1)
 
(2)
 
(3)
 
(4)
 
(5)
 
(6)
 
(7)
 
(8)
 
(9)
 
(10)
(e)
(f)
Depositor’s Certificate of Incorporation and By-Laws.
C-1
 
(1)
 
(2)
(g)
Reinsurance Contracts.
 
(1)
 
(2)
 
(3)
 
(4)
 
(5)
(h)
Participation Agreements.
 
(1)
 
(2)
 
(3)
 
(4)
 
(5)
C-2
 
(6)
 
(7)
 
(8)
 
(9)
 
(10)
 
(11)
 
(12)
 
(13)
 
(14)
 
(15)
 
(16)
 
(17)
 
(18)
C-3
 
(19)
 
(20)
 
(21)
 
(22)
 
(23)
 
(24)
 
(25)
 
(26)
 
(27)
 
(28)
 
(29)
C-4
 
(30)
 
(31)
 
(32)
 
(33)
 
(34)
 
(35)
 
(36)
 
(37)
 
(38)
 
(39)
 
(40)
 
(41)
C-5
 
(42)
 
(43)
 
(44)
 
(45)
 
(46)
 
(47)
 
(48)
 
(49)
 
(50)
 
(51)
C-6
 
(52)
 
(53)
 
(54)
 
(55)
 
(56)
 
(57)
 
(58)
 
(59)
 
(60)
 
(61)
 
(62)
 
(63)
 
(64)
C-7
 
(65)
 
(66)
 
(67)
 
(68)
 
(69)
 
(70)
 
(71)
 
(72)
 
(73)
 
(74)
 
(75)
C-8
 
(76)
 
(77)
 
(78)
 
(79)
 
(80)
 
(81)
 
(82)
 
(83)
 
(84)
 
(85)
 
(86)
 
(87)
 
(88)
C-9
 
(89)
 
(90)
 
(91)
 
(92)
 
(93)
 
(94)
 
(95)
 
(96)
 
(97)
 
(98)
 
(99)
 
(100)
C-10
 
(101)
 
(102)
 
(103)
 
(104)
 
(105)
 
(106)
 
(107)
 
(108)
 
(109)
 
(110)
 
(111)
C-11
 
(112)
 
(113)
 
(114)
 
(115)
(i)
Administrative Contracts. None.
(j)
(k)
(l)
Actuarial Opinion. None.
(m)
(n)
Other Opinions.
 
(1)
 
(2)
(o)
Omitted Financial Statements. None
(p)
Initial Capital Agreements. None.
(q)
Redeemability Exemption. None.
(r)
Item 27. Directors and Officers of the Depositor 
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
J. Carney
(4)
Director
M.R. Coutu
Brookfield Asset Management Inc.
335 8th Avenue SW, Suite 1700
Calgary, AB T2P 1C9
Director
C-12
Name
Principal Business Address
Positions and Offices with Depositor
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
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
A.S. Bolotin
(2)
Executive Vice President & Chief Financial
Officer
J.F. Bevacqua
(2)
Chief Risk Officer
C. Kline
(2)
Chief Information Officer
K.I. Schindler
(3)
Chief Compliance Officer
R.G. Schultz
(3)
General Counsel, Chief Legal Officer, and
Secretary
T. Wilson
(2)
Chief Product Officer
R.H. Linton, Jr.
(2)
Executive Vice President, Empower Retirement
Operations
J.E. Brown
(2)
Senior Vice President and Chief Investment
Officer
S.E. Jenks
(2)
Senior Vice President, Marketing
J.D. Kreider
(2)
Senior Vice President and Head of Great-
West Investments
W.J. McDermott
(2)
Senior Vice President, Large, Mega, NFP
Market
D.G. McLeod
(2)
Senior Vice President and Chief Business
Development Officer
C.M. Moritz
(2)
Senior Vice President and Chief Financial
Officer, Empower Retirement
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 and Chief Customer
Experience Officer
C. E. Waddell
(2)
Senior Vice President, Retirement Solutions
K.S. Roe
(2)
Corporate Controller
(1)  100 Osborne Street North, Winnipeg, Manitoba, Canada R3C 3A5.
(2) 8515 East Orchard Road, Greenwood Village, Colorado 80111.
(3) 8525 East Orchard Road, Greenwood Village, Colorado 80111.
C-13
(4) Power Financial Corporation, 751 Victoria Square, Montreal, Quebec, Canada H2Y 2J3.
Item 28. Persons Controlled by or Under Common Control with the Depositor or Registrant as of December 31, 2020
The Registrant is a separate account of Great-West Life & Annuity Insurance Company, a stock life insurance company incorporated under the laws of the State of Colorado (“Depositor”). The Depositor is an indirect subsidiary of Power Corporation of Canada. An organizational chart for Power Corporation of Canada is set forth below.
C-14
Organizational Chart – December 31, 2020
I.
OWNERSHIP OF POWER CORPORATION OF CANADA
The following sets out the ownership, based on votes attached to the outstanding voting shares, of Power Corporation of Canada: 
The Desmarais Family Residuary Trust
 
 
 
99.999% - Pansolo Holding Inc.
 
 
 
 
 
50.84% - 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, 2020 622,388,232 Subordinate Voting
Shares (SVS) of PCC carrying one vote per share and 54,860,866 Participating Preferred Shares (PPS) carrying 10 votes per
share; hence the total voting rights are 1,70,996,892.
 
 
 
 
 
 
 
 
 
 
 
 
 
Pansolo
Holding Inc.
owns directly
and indirectly
48,363,392
SVS and
54,697,962
PPS, entitling
Pansolo
Holding Inc. to
an aggregate
percentage of
voting rights of
595,343,012 or
50.88% of the
total voting
rights attached
to the shares of
PCC.
 
 
 
 
 
 
 
 
 
 
 
 
 
II.
OWNERSHIP BY POWER CORPORATION OF CANADA
Power Corporation of Canada has a voting interest in the following entities:
A.
Great-West Life & Annuity Insurance Company Group of Companies (U.S. insurance) 
Power Corporation of Canada
 
 
 
 
 
100.0% - Power Financial Corporation
 
 
 
 
 
 
 
66.848% - Great-West Lifeco Inc.
 
 
 
 
 
 
 
 
 
 
100.0% - Great-West Financial (Nova Scotia) Co.
 
 
 
 
C-15
 
 
 
 
 
 
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% - Great-West Global Business Services India Private Limited (99% owned by Great-West Services Singapore II Private Limited)
 
 
 
 
 
 
 
 
 
100.0% - GWL & A Financial Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - 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% - Empower Retirement, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Empower Retirement Plan Co., 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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.00% - Great-West Financial Retirement Plan Services, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Empower Insurance Agency, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% -
Empower
Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Personal Capital Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Personal Capital Advisors Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Personal Capital Services Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Personal Capital Technology Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
B.
Putnam Investments Group of Companies (Mutual Funds) 
Power Corporation of Canada
 
 
100.0% - Power Financial Corporation
 
 
 
66.848% - Great-West Lifeco Inc.
 
 
 
 
100.0% - Great-West Financial (Nova Scotia) Co.
 
 
 
 
 
 
100.0% - 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
 
C-16
 
 
 
 
 
 
 
 
 
 
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, LLC
 
 
 
 
 
 
 
 
 
 
 
 
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%
- 37
Capital
General
Partner,
LLC
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - 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.
 
C-17
 
 
 
 
 
 
 
 
 
 
 
 
 
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% - Power Financial Corporation
 
 
 
 
 
 
 
 
66.848% - Great West Lifeco Inc.
 
 
 
 
 
 
 
 
 
100.0% - Great-West Lifeco Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% Great-West Lifeco Finance 2019, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
99.0% - Great-West Lifeco Finance 2018, LP (1.0% owned by Great-West Lifeco U.S. LLC)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Great-
West Lifeco
Finance 2018,
LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Great-
West Lifeco
Finance 2018 II,
LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Great-West Lifeco US Finance 2019, LP
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Great-West Lifeco US Finance 2019, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Great-West Lifeco US Finance 2019 I, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Great-West Lifeco US Finance 2019 II, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
1.0% - Great-West Lifeco Finance 2018, LP (99.0% owned by Great-West Lifeco Finance 2019, LLC)
 
 
 
 
 
 
 
 
 
 
100.0% - GW Lifeco Finance 2020, LLC
 
 
 
 
 
 
 
 
 
 
 
1.0% - Great-West Lifeco US Finance 2020, LP
 
 
 
 
 
99.0% - Great-West Lifeco US Finance 2020, LP
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - GW Lifeco Finance 2020 5 Year, LLC
 
 
 
 
 
 
 
 
 
 
100.0% - Empower Finance 2020, LLC
 
 
 
 
 
 
 
 
 
 
100.0% - Empower Finance 2020 Holdco, LLC
 
 
 
 
 
 
 
 
 
 
100.0% - Empower Finance 2020 A, LLC
 
 
 
 
 
 
 
 
 
 
100.0% - Empower Finance 2020 B, LLC
 
 
 
 
 
 
 
 
 
 
100.0% - Empower Finance 2020 C, LLC
 
 
 
 
 
 
 
 
 
100.0% - Empower Finance 2020, LP
 
 
 
 
 
 
 
 
 
 
 
 
 
18.5% - Portag3 Ventures LP
 
 
 
 
 
 
 
 
 
 
29.3% - Springboard II LP
 
 
 
 
 
 
 
 
 
 
33.3% - Portag3 Ventures II Affiliates LP
 
 
 
 
 
 
 
 
 
 
 
 
 
33.3% - Portag3 Ventures II LP
 
 
 
 
 
 
 
 
 
 
 
 
 
33.3% - Portag3 Ventures II International Investments Inc. 100.0% -2142540 Ontario Inc.
 
 
 
 
 
 
C-18
 
 
 
 
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.
 
 
 
 
 
 
 
 
 
 
99.0% - Great-West Lifeco Finance (Delaware) LP (1.0% owned by 2142540 Ontario Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% Great-West Lifeco Finance 2017, LLC
 
 
 
 
 
 
 
 
 
 
100.0% - 2171866 Ontario Inc
 
 
 
 
 
 
 
 
 
 
100.0% - 2619747 Ontario Inc.
 
 
 
 
 
 
 
 
 
 
100.0% - 2142540 Ontario Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
1.0% - Great-West Lifeco Finance (Delaware) LP (99% owned by Great-West Lifeco Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
40.0% - Great-West Lifeco Finance (Delaware) LLC (60.0% owned by The Great-West Life Assurance Company)
 
 
 
 
 
 
 
 
 
 
 
 
 
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.
 
 
 
 
 
 
 
 
 
 
20.0% - 11249185 Canada Inc.
 
 
 
 
 
 
 
 
 
 
20.0% - Armstrong LP (1.0% owned by 11249185 Canada Inc.)
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Capital Group Ltd
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Capital Partners Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf PPP GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Secondary Partners III GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Mid-Market Infrastructure Partners GP Ltd.
 
 
 
 
 
 
 
 
 
 
 
100% - Northleaf SH288 GP Ltd.
 
 
 
 
 
 
100% - Northleaf Geothermal Holdings (Canada) GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NSPC-L Holdings II GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Small Cell GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NCP Terminals GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NCP NWP US GP Ltd.
 
 
 
 
 
 
 
 
 
 
40% - Northleaf NICP III GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NCP US Terminals GP LLC
 
 
 
 
 
 
 
 
 
 
100% - NCP Canadian Breaks GP LLC
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Vault Holdings GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NSPC-L GPC Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NCP CSV Holdings GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Capital Advisors Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf/PRD Holdco GP Ltd.
 
 
 
 
 
 
 
 
 
 
 
100% - Northleaf/PRD GP Ltd.
 
 
 
 
 
 
100% - Northleaf Trustees Limited
 
 
 
 
 
 
 
 
 
 
100% - Northleaf NVCF Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf PE GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf 2013-2014 Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf PE GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NCP 2015 Canadian Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Capital Partners (Canada) Ltd.
 
 
 
 
 
 
C-19
 
 
 
 
 
100% - Northleaf Capital Partners (Australia) Pty Ltd.
 
 
 
 
 
 
 
100% - Northleaf Capital Partners (UK) Limited
 
 
 
 
 
 
 
49% - Northleaf NICP GP Ltd.
 
 
 
 
 
 
 
49% - Northleaf NICP II GP Ltd
 
 
 
 
 
 
 
100% - Northleaf Class C Holdings GP Ltd.
 
 
 
 
 
 
 
100% - Northleaf Capital Partners (USA) Inc.
 
 
 
 
 
 
100% - Annex Fund GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Capital Partners GP Ltd.
 
 
 
 
 
 
 
 
 
 
 
49% - Northleaf NICP Holdings GP Ltd.
 
 
 
 
 
 
 
100% - SW Holdings GP Ltd.
 
 
 
 
 
 
 
100% - Northleaf South Dundas GP Ltd.
 
 
 
 
 
 
100% - Northleaf NICP III Canadian Class C Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Millenium Holdings (US) GP Ltd.
 
 
 
 
 
 
100% - Northleaf Millennium Holdings (Canada) GP Ltd
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100% - Northleaf 1608 II Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100% - Northleaf NVCF II Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100% - Northleaf 2017-2018 PE Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100% - Northleaf 1855 Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
49% - Northleaf Star Holdings GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Star GPC Ltd.
 
 
 
 
 
 
 
 
 
 
49% - Northleaf Private Credit GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NPC GPC Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf NPC I Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Lal Lal Holdings GP Ltd.
 
 
 
 
 
 
100% - Northleaf Lal Lal Holdings (Australia) Pty Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100% - NPC II GPC Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NSPC GPC Ltd.
 
 
 
 
 
 
 
 
 
 
 
49% - NSPC GP Ltd.
 
 
 
 
 
 
 
49% - NSPC-L GP Ltd.
 
 
 
 
 
 
 
49% - NSPC-L Holdings GP Ltd.
 
 
 
 
 
 
 
49% - NPC I Holdings GP Ltd.
 
 
 
 
 
 
 
49% - Northleaf Private Credit II GP Ltd.
 
 
 
 
 
 
 
49% - Northleaf NCO GP Ltd.
 
 
 
 
 
 
100% - Northleaf NICP III Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf CFOF Class C 2019 Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf 010 II Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NSPC International GP Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
100% - NSPC-L International GP Ltd.
 
 
 
 
100% - Northleaf NCO Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf NCO Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf NPE VIII Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf NSP III Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
63.17% - Northleaf Capital Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf PE Holdings GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Capital Partners GP II Ltd.
 
 
 
 
 
 
49% - Northleaf NICP II Holdings GP Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - The Great-West Life Assurance Company (NAIC #80705, MI)
 
 
 
 
 
 
C-20
 
 
 
 
 
41.2% - GWL THL Private Equity I Inc. (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. (77% owned by The Canada 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
 
 
 
 
 
 
 
 
 
 
 
77.0% - CDN US Direct RE Holdings Ltd. (23% The Canada Life Insurance Company of Canada)
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Great-West US Direct RE Holdings Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - GWL Direct 650 Almanor LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - GWL Direct 345 Cessna LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - CL GFP LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - GWL Direct 1 Bulfinch Place LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Great-West US Direct RE Acquisition LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - GWL Direct 851 SW 34th LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - GWL Direct 12100 Rivera LLC
 
 
 
 
 
 
 
 
 
 
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% - EverWest Funds Advisors LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - GWL U.S. Property Fund GP LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - GWL Plus GP LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - GWL Plus II GP LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - GWL GP LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - GWL RES GP LLC
 
 
 
 
 
 
 
 
 
100.0% - GWLRA US Trust Company, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - RA Real Estate Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
0.1% - RMA Real Estate LP (99.9% owned by The Canada Life Assurance Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100% - RMA Properties Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100% - RMA Properties (Riverside) Ltd.
 
 
 
 
 
 
 
 
 
 
100.0% - GWL Realty Advisors Residential Inc.
 
 
 
 
 
 
 
 
 
 
100.0% - 2278372 Ontario Inc.
 
 
 
 
 
 
 
 
87.5% - 555 Robson Holding Ltd. (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)
 
 
 
 
 
 
 
 
100.0% - Kings Cross Shopping Centre Ltd.
 
 
 
 
 
 
C-21
 
 
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.
 
 
 
 
 
 
 
 
77.0% - Great-West Investor Holdco Inc. (23% owned by GWL THL Private Equity I Inc.)
 
 
 
 
 
 
 
 
84.0% - 2148902 Alberta Ltd. (16% owned by The Canada Life Insurance Company of Canada)
 
 
 
 
 
 
 
 
70.0% - 2157113 Alberta Ltd. (30% owned by The Canada Life Insurance Company of Canada)
 
 
 
 
 
 
 
 
100.0% - The Walmer Road Limited Partnership (35.0% owned by London Life Insurance Company)
 
 
 
 
 
 
 
 
100.0% - Laurier House Apartments Limited (50.0% owned by London Life Insurance Company)
 
 
 
 
 
 
 
 
100.0% - 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
 
 
 
 
 
 
 
 
100.0% - High Park Bayview Limited Partnership
 
 
 
 
 
 
 
 
5.6% - MAM Holdings Inc. (94.4% owned by The Canada Life Insurance Company of Canada)
 
 
 
 
 
 
 
 
 
 
100% - Mountain Asset Management LLC
 
 
 
 
 
 
 
 
100.0% - TGS North American Real Estate Investment Trust
 
 
 
 
 
 
 
 
 
 
100.0% - TGS Trust
 
 
 
 
 
 
 
 
100.0% - RMA Realty Holdings Corporation Ltd.
 
 
 
 
 
 
 
 
 
 
100.0% 1995709 Alberta Ltd.
 
 
 
 
 
 
 
 
 
 
100.0% - RMA (U.S.) Realty LLC (Delaware)
 
 
 
 
 
 
 
 
 
 
 
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.)
 
 
 
 
 
 
 
 
 
 
99.9% - RMA Real Estate LP (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% - KS Village (Millstream) Inc.
 
 
 
 
 
 
 
 
100.0% - Trop Beau Developments Limited
 
 
 
 
 
 
 
 
100.0% - Kelowna Central Park Properties Ltd.
 
 
 
 
 
 
 
 
100.0% - Kelowna Central Park Phase II Properties Ltd.
 
 
 
 
 
 
 
 
87.5% - Vaudreuil Shopping Centres Limited (12.5% owned by The Canada Life Insurance Company of Canada)
 
 
 
 
 
 
 
 
62.0% - 1296 Station Street Properties Ltd. (380% owned by The Canada Life Insurance Company of Canada)
 
 
 
 
 
 
 
 
100.0% - Saskatoon West Shopping Centres Limited
 
 
 
 
 
 
 
 
87.5% - 2331777 Ontario Ltd. (12.5% owned by The Canada Life Insurance Company of Canada)
 
 
 
 
 
 
 
 
87.5% - 2344701 Ontario Ltd. (12.5% owned by The Canada Life Insurance Company of Canada)
 
 
 
 
 
 
 
 
87.5% - 2356720 Ontario Ltd. (12.5% owned by The Canada Life Insurance Company of Canada)
 
 
 
 
 
 
 
 
87.5% - 0977221 B.C. Ltd. (12.5% owned by The Canada Life Insurance Company of Canada)
 
 
 
 
 
 
 
 
100.0% - 7419521 Manitoba Ltd.
 
 
 
 
 
 
 
 
 
 
0.09% - 7420928 Manitoba Limited Partnership (88.15% owned The Canada Life Assurance Company and11.74% owned by The Canada Life Insurance
Company of Canada)
 
 
 
 
 
 
C-22
 
 
 
 
 
100.0% - 7419539 Manitoba Ltd.
 
 
 
 
 
 
 
 
 
 
100.0% - 1542775 Alberta Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - 0813212 B.C. Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - 1319399 Ontario Inc.
 
 
 
 
 
 
 
 
 
 
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.
 
 
 
 
 
 
 
 
 
 
 
 
88.0% - Neighborhood Dental Services Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Quadrus Distribution Services Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Toronto College Park Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - 185 Enfield GP Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
0.01% - 185 Enfield LP (99.99% owned by The Canada Life Assurance Company)
 
 
 
 
 
 
 
 
 
 
99.99% - 185 Enfield LP (0.001% owned by 185 Enfield GP Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - 320 Mc Rae GP Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
0.001% - 320 McRae LP (99.99% owned by The Canada Life Assurance Company)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
99.99% - 320 McRae LP (0.001% owned by 320 McRae GP Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - London Life Financial Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - 11658735 Canada Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - London Reinsurance Group, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - London Life and Cascualty 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)
 
 
 
 
 
 
 
 
 
 
 
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% - TORCE Financial Group Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - TORCE Investment Management Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - VANCE Financial Group 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 Capital Corporation, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Canada Life International Holdings Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Canada Life Annuity Reinsurance (Barbados) Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
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% - The Canada Life Group (U.K.) Limited
 
 
 
 
 
 
C-23
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
28% - JDC Group AG
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Jung, DMS & Cie.AG
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Jung, DMS & Cie.Pro GmbH
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Jung, DMS & Cie.Pool GmbH
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - JDC Geld,de
GmbH
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - JDC plus
GmbH
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - JDC B-LAB GmbH
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - FINUM.PRIVATE Finance Holding GmbH (Germany)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - FINUM.Finanzhause AG
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - FINUM.Pension Consulting GmbH
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - FINUM.Private Finance AG
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - FVV – GmbH
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - FINUM.PRIVATE Finance Holding GmbH (Austria)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - FINUM.Private Finance AG
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Jung, DMS &
Cie. GmbH
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
51.0% - Jupoo finance
GmbH
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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% - Canada Life Re Ireland dac
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Canada Life Dublin dac
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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% - Irish Life Investment Managers Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Summit Asset Managers Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
C-24
 
 
 
 
 
 
 
 
100.0% - CLFIS (U.K.) Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Canada Life UK Staff Pension Trustee Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - MGM Advantage Holdings Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Stonehaven UK Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - MGM Advantage Services Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Canada Life Platform Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Canada Life SIPP Trustee Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Canada Life Platform Nominee 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% - MGM Advantage Life Trustee Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Canada Life Irish Operations Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Canada Life Ireland Holdings Limited.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Irish Life Group Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - ILGAPT Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
90.0% APT Workplace Pension Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% APT Wealth Management Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% APTFS Nominees Ltd.
 
 
 
 
 
 
 
 
 
 
 
100.0% - ILGWM Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Clearview Investments & Pensions Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Irish Life Health dac
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% EIS Financial
Services Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Cornmarket
Retail Trading Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Irish Life Associate Holdings Unlimited Company
 
 
 
 
 
 
C-25
 
 
 
 
 
 
 
 
 
 
 
 
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% - City
Life Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - ILP Pension
Trustees DAC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - BCRM Financial
Holdings (Ireland) dac
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Acumen &
Trust dac
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Acumen &
Trust Pension Trustees
dac
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Irish Life Assurance plc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Ilona Financial Group, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Irish Life Trustee Services Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Stephen Court 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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
18.2143% - Tour Esplanade (Paris) LP
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
52.8% - Platform Capital Holdings Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Conexim Advisors Limited
 
 
 
 
 
 
 
 
 
 
100.0% - 4073649 Canada, Inc.
 
 
 
 
 
 
 
 
 
 
 
100.0% - CL Luxembourg Capital Management S.á.r.l.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
45.0% - Wealthsimple Europe S.á.r.l.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Wealthsimple UK Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Wealthsimple Germany GmbH
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Wealthsimple Technologies Europe
 
 
 
 
 
 
 
 
 
 
 
100.0% - Canada Life Finance (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
 
 
 
 
 
 
 
 
 
77.0% - Great-West Investors Holdco Inc. (23% owned by GWL THL I Private Equity I Inc.)
 
 
 
 
 
 
 
 
 
 
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% - CL Eastlake GP Inc.
 
 
 
 
 
 
C-26
 
 
 
 
 
0.001% - CL Eastlake LP (99.99% owned by The Canada Life Assurance Company)
 
 
 
 
 
 
 
 
 
 
99.99% - CL Eastlake LP (0.001% owned by CL Eastlake GP Inc.)
 
 
 
 
 
 
 
 
 
 
100.0% - CL Lago GP Inc.
 
 
 
 
 
 
 
 
 
 
 
0.001% - CL Lago LP (99.99% owned by The Canada Life Assurance Company)
 
 
 
 
 
 
 
 
 
 
99.99% - CL Lago LP (0.001% owned by CL 22 Chapel GP Inc.)
 
 
 
 
 
 
 
 
 
 
100.0% - CL 2505 Bruckner GP Inc.
 
 
 
 
 
 
 
 
 
 
 
0.001% - CL 2505 Bruckner LP (99.99% owned by The Canada Life Assurance Company)
 
 
 
 
 
 
 
 
 
 
99.99% - CL 2505 Bruckner LP (0.001% owned by CL 2505 Bruckner Inc.)
 
 
 
 
 
 
 
 
 
100.0% - The Canada Life Insurance Company of Canada
 
 
 
 
 
 
 
 
 
 
11.74%- 7420928 Manitoba Limited Partnership (88.15% limited partner interest held by The Canada Life Assurance Company; 7419521 Manitoba Ltd.
holds 0.12% interest)
 
 
 
 
 
 
 
 
 
 
100.0% - 6855572 Manitoba Ltd.
 
 
 
 
 
 
 
 
 
 
94.4% - MAM Holdings Inc. (5.6% owned by The Canada Life Assurance Company)
 
 
 
 
 
 
 
 
 
 
 
100.0% - Mountain Asset Management LLC
 
 
 
 
 
 
 
 
 
 
12.5% - 2331777 Ontario Ltd. (87.5% owned by The Canada Life Assurance Company)
 
 
 
 
 
 
 
 
 
 
12.5% - 2344701 Ontario Ltd. (87.5% owned by The Canada Life Assurance Company)
 
 
 
 
 
 
 
 
 
 
12.5% - Vaudreuil Shopping Centres Limited (87.5% owned by The Canada Life Assurance Company)
 
 
 
 
 
 
 
 
 
 
38.0% - 1296 Station Street Properties Ltd. (62.0% owned by The Canada Life Assurance Company
 
 
 
 
 
 
 
 
 
 
12.5% - 2356720 Ontario Ltd. (87.5% owned by The Canada Life Assurance Company)
 
 
 
 
 
 
 
 
 
 
12.5% - 0977221 B.C. Ltd. (87.5% owned by The Canada Life Assurance Company)
 
 
 
 
 
 
 
 
 
 
12.5% - 555 Robson Holding Ltd. (87.5% owned by The Canada Life Assurance Company)
 
 
 
 
 
 
 
 
 
 
58.8% - GWL THL Private Equity I Inc. (41.2% The Canada Life Assurance Company)
 
 
 
 
 
 
 
 
 
 
 
100.0% - GWL THL Private Equity II Inc.
 
 
 
 
 
 
 
 
 
 
16.0% - 2148902 Alberta Ltd. (85% by The Canada Life Assurance Company)
 
 
 
 
 
 
 
 
 
 
30.0% - 2157113 Alberta Ltd (70% 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% - Canada Life Mortgage Services Ltd.
 
 
 
 
 
 
 
 
 
11.8% - GWL THL Private Equity I Inc. (29.4% 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.
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
C-27
 
 
 
100.0% - Canada Life Capital Trust
 
 
 
 
 
 
 
 
 
100.0% - Canada Life Investment Management Ltd.
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
 
 
100.0% - CL 25 North LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
D.
IGM Financial Inc. Group of Companies (Canadian mutual funds) 
Power Corporation of Canada
 
 
 
 
 
 
100.0% - Power Financial Corporation
 
 
 
 
 
 
 
62.076% - IGM Financial Inc. (direct and indirect 65.936%)
 
 
 
 
 
 
 
 
100.0% - Investors Group Inc.
 
 
 
 
 
 
 
 
 
 
100.0% - Investors Group Financial Services Inc.
 
 
 
 
 
 
 
 
 
 
 
100.0% - 11249142 Canada Inc.
 
 
 
 
 
 
 
 
 
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% - 11263552 Canada Inc.
 
 
 
 
 
 
 
 
100.0% - Mackenzie Inc.
 
 
 
 
 
 
 
 
 
100.0% - Mackenzie Financial Corporation
 
 
 
 
 
 
 
 
 
 
100.0% - Mackenzie Investments Europe Limited
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Mackenzie Investments Asia Limited
 
 
 
 
 
 
 
 
 
 
100.0% - Mackenzie Investments Charitable Foundation
 
 
 
 
 
 
 
 
 
 
14.28% - Strategic Charitable Giving Foundation
 
 
 
 
 
 
 
 
 
 
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.
 
 
 
 
 
 
 
 
 
 
13.9% - China Asset Management Co., Ltd.
 
 
 
 
 
 
 
 
 
 
80.0% - 11249185 Canda Inc.
 
 
 
 
 
 
 
 
 
 
 
100.0% - Armstrong LP
 
 
 
 
 
 
 
 
 
 
 
49.9% - Northleaf Capital
Group Ltd.
 
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Capital
Partners Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf PPP GP
Ltd.
 
C-28
 
 
 
 
 
 
 
 
 
100% - Northleaf
Secondary Partners III GP
Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Mid-
Market Infrastructure
Partners GP Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
100% - Northleaf
SH288 GP Ltd.
 
 
 
 
 
 
 
 
 
100% - Northleaf
Geothermal Holdings
(Canada) GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NSPC-L
Holdings II GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Small
Cell GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NCP Terminals GP
Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NCP NWP US GP
Ltd.
 
 
 
 
 
 
 
 
 
 
49% - Northleaf NICP III
GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NCP US Terminals
GP LLC
 
 
 
 
 
 
 
 
 
 
100% - NCP Canadian
Breaks GP LLC
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Vault
Holdings GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NSPC-L GPC Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NCP CSV Holdings
GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Capital
Advisors Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf/PRD
Holdco GP Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
100% - Northleaf/PRD
GP Ltd.
 
 
 
 
 
 
 
 
 
100% - Northleaf Trustees
Limited
 
 
 
 
 
 
 
 
 
 
100% - Northleaf NVCF
Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf PE GP
Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf 2013-
2014 Holdings Ltd.
 
C-29
 
 
 
 
 
 
 
 
 
100% - Northleaf PE GP
Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NCP 2015
Canadian Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Capital
Partners (Canada) Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
100% - Northleaf
Capital Partners
(Australia) Pty Ltd.
 
 
 
 
 
 
 
 
 
 
 
100% - Northleaf
Capital Partners (UK)
Limited
 
 
 
 
 
 
 
 
 
 
 
49% - Northleaf NICP
GP Ltd.
 
 
 
 
 
 
 
 
 
 
 
49% - Northleaf
NICP II GP Ltd.
 
 
 
 
 
 
 
 
 
 
 
100% -Northleaf
Class C Holdings GP
Ltd.
 
 
 
 
 
 
 
 
 
 
 
100% - Northleaf
Capital Partners (USA)
Inc.
 
 
 
 
 
 
 
 
 
100% - Annex Fund GP Ltd
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Capital
Partners GP Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
49% - Northleaf NICP
Holdings GP Ltd.
 
 
 
 
 
 
 
 
 
 
 
100% - SW Holdings
GP Ltd.
 
 
 
 
 
 
 
 
 
 
 
100% - Northleaf South
Dundas GP Ltd.
 
 
 
 
 
 
 
 
 
100% - Northleaf NICP III
Canadian Class C Holdings
Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf
Millennium Holdings (US)
GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf
Millennium Holdings
(Canada) GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf 1608 II
Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf NVCF II
Holdings Ltd.
 
C-30
 
 
 
 
 
 
 
 
 
100% - Northleaf 2017-
2018 PE Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf 1855
Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
49% - Northleaf Star
Holdings GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Star GPC
Ltd.
 
 
 
 
 
 
 
 
 
 
49% - Northleaf Private
Credit GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NPC GPC Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf NPC I
Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Lal Lal
Holdings GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Lal Lal
Holdings (Australia) Pty
Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NPC II GPC Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NSPC GPC Ltd.
 
 
 
 
 
 
 
 
 
 
49% - NSPC GP Ltd.
 
 
 
 
 
 
 
 
 
 
49% - NSPC-L GP Ltd.
 
 
 
 
 
 
 
 
 
 
49% - NSPC-L Holdings
GP Ltd.
 
 
 
 
 
 
 
 
 
 
49% - NPC I Holdings GP
Ltd.
 
 
 
 
 
 
 
 
 
 
49% - Northleaf Private
Credit II GP Ltd.
 
 
 
 
 
 
 
 
 
 
49% - Northleaf NCO GP
Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf NICP III
Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf CFOF
Class C 2019 Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf 010 II
Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NSPC International
GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - NSPC-
L International GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf NCO
Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf NPE VIII
Holdings Ltd.
 
C-31
 
 
 
 
 
 
 
 
 
100% - Northleaf NSP III
Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
63.17% - Northleaf Capital
Holdings Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf PE
Holdings GP Ltd.
 
 
 
 
 
 
 
 
 
 
100% - Northleaf Capital
Partners GP II Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
49% - Northleaf
NICP II Holdings GP
Ltd.
 
 
 
 
 
 
100.0% - Greenchip Financial Corp.
 
 
 
 
 
 
 
 
 
 
100.0% - GLC Asset Management Group 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
 
 
 
 
 
 
 
 
18.54% - Portag3 Ventures LP
 
 
 
 
 
 
 
 
 
19.82% - Springboard LP
 
 
 
 
 
 
 
 
55.23% - Springboard LP
 
 
 
 
 
 
 
 
 
75.95% - WealthSimple Financial Corp. (74.89% equity)
 
 
 
 
 
 
 
 
29.33% - Springboard II LP
 
 
 
 
 
 
 
 
33.3% - Portag3 Ventures II Affiliates LP
 
 
 
 
 
 
 
 
 
31.97% - Portag3 ventures II LP
 
 
 
 
E.
Pargesa Holding SA Group of Companies (European investments) 
Power Corporation of Canada
 
 
 
 
 
 
 
 
 
 
100.0% - Power Financial Corporation
 
 
 
 
 
 
 
 
 
 
 
100.0% - Power Financial Europe SA
 
 
 
 
 
 
 
 
 
 
 
 
50.0% - Parjointco SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Pariontco Switzerland SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Pargesa Netherlands B.V.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
43.2% (Groupe Bruxelles Lambert (28.2% in capital)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.3% - Groupe Bruxelles Lambert (1.6% in capital)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.4% - LTI One SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
96.5% - FINPAR II SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.2% - Groupe Bruxelles Lambert (0.1% in capital)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
90.2% - FINPAR III SA
 
 
 
 
 
 
 
 
 
C-32
 
 
 
 
 
 
 
 
 
 
0.2% - Groupe Bruxelles Lambert (0.1% in capital)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
94.4% - FINPAR IV SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.1% - Groupe Bruxelles Lambert
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.1% - Imerys
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
94.9% - FINPAR V SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.1% - Groupe Bruxelles Lambert
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.3% - Marnix Lux SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
95.0% - PINPAR VI SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.1% - Groupe Bruxelles Lambert
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.3% - Marnix Lux SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.2% - Sagerpar SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Belgian Securities BV
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
67.6% - Imerys (53.9% in capital)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Brussels Securities SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
99.6% - LTI One SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - LTI Two SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.1% - Groupe Bruxelles Lambert
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - URDAC SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.1% - Groupe Bruxelles Lambert
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - FINPAR SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.1% - Groupe Bruxelles Lambert
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - FINSAR SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
98.8% - Sagerpar SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.0% - Groupe Bruxelles Lambert (3.1% in capital)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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% - RPCE Consulting SAS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - GBL Verwaltung SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - GBL Investments Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - GBL R S.á.r.l
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - GBL Energy S.á.r.l
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Serena S.á.r.l.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Eliott Capital S.á.r.l
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Sienna Capital S.á.r.l
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Sienna Capital London Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Sienna Capital Opportunity GP S.a.r.l
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.0% - Avanti Acquisition GP S.a.r.l
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% Sienna Capital Invest SCSp
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Sienna Capital Opportunity Carry SCSp
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Sienna Capital Opportunity Fund SCSp
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - SC Opportunity Master S.a.r.l
 
 
 
 
 
 
 
 
C-33
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Sienna Capital Participations S.á.r.l
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
89.9%% - Ergon Capital Partners III SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Sienna Capital Co-Invest Master S.a.r.l
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.0% - Avanti Acquisition SCSp
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - GBL Finance S.á.r.l.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Miles Capital S.á.r.l.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Oliver Capital S.á.r.l
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Theo Capital S.á.r.l
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Owen Capital S.á.r.l
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - GfG Capital S.á.r.l
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Blitz 20-673 GmbH
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.5% - FINPAR II SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.4% - FINPAR III SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.6% - FINPAR IV SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.1% - FINPAR V SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.0% - FINPAR VI SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Sapiens S.á.r.l
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
61.0% - Marnix Lux SA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Marnix French ParentCo SAS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Marnix French TopCo SAS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Marnix SAS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Courcelles Lux SCA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Wowholdco SAS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Wowmidco SAS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Wowbidco SAS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Webhelp SAS
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
G.
Other PCC Companies 
Power Corporation of Canada
 
 
100.0% - 152245 Canada Inc.
 
 
100.0% - Square Victoria Real Estate Inc./ Square Victoria Immobilier Inc.
 
 
 
100.0% - SVRE Management Inc.
 
 
100.0% - 3121011 Canada Inc.
 
 
100.0% - 171263 Canada Inc.
 
 
100.0% - Power Sustainable Capital Investments Inc.
 
C-34
 
 
 
100.0% - Power Sustainable Manager Inc.
 
 
 
 
 
 
100.0% - PSEIP Carry Holding LP
 
 
 
 
 
 
100.0% - Power Sustainable Energy Infrastructure Inc.
 
 
 
 
 
 
 
 
100.0% - PSEIP Carry Canada Inc
 
 
 
 
 
 
100.0% - Power Sagard (Shanghai) Investment Management Co., Ltd.
 
 
 
8.92% - 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.
 
 
 
 
 
 
 
75.0% - Paintearth Wind Project LP
 
 
 
 
 
 
 
100.0% - 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% - Musselshell Wind Holdings, LLC
 
 
 
 
 
 
 
 
100.0% - Musselshell Wind Project, LLC
 
 
 
 
 
 
 
 
100.0% - Musselshell Wind Project Two, LLC
 
 
 
 
 
 
 
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% - Solarize Holdings Corp.
 
 
 
 
 
 
100.0% - Potentia Solar Holdings Corp.
 
 
 
 
 
 
 
100.0%- Banjo Solar Holdings Corp.
 
 
 
 
 
 
 
64.0% - Potentia MN Solar Fund I, LLC
 
 
 
 
 
 
100.0% - Golden South Wind LP
 
 
 
 
 
 
100.0% - Potentia Renewables 15 LP (Affinity and RT Solar)
 
 
 
 
 
 
100.0% - Potentia Renewables 16 LP (Solar Gardens)
 
 
 
 
 
 
50.0% - Pokeshaw Windfarm LP
 
 
 
 
 
100.0% - Power Energy Corporation US
 
 
 
 
 
 
100.0% - Nautilus Solar Energy, LLC
 
 
 
 
 
 
 
100.0% - Nautilus Helios Solar Torsk, LLC
 
 
 
 
 
 
 
 
100.0% - Bulldog Solar One LLC
 
 
 
 
 
 
 
 
100.0% - Burns Solar One LLC
 
 
 
 
 
 
 
 
100.0% - MVR Solar One LLC
 
 
 
 
 
 
 
 
100.0% - Mason Solar One,LLC
 
 
 
 
 
 
 
 
100.0% - Pittman Solar One LLC
 
C-35
 
 
 
 
 
 
 
100.0% - Chesapeake Energy One, LLC
 
 
 
 
 
 
 
100.0% - Nautilus Solar Solutions, LLC
 
 
 
 
 
 
 
100.0% - Nautilus Castle Solar, LLC
 
 
 
 
 
 
 
100.0% - NSE Sackets Solar, LLC
 
 
 
 
 
 
 
 
100.0% - Clifton Park Solar 1, LLC
 
 
 
 
 
 
 
 
100.0% - Clifton Park Solar 2, LLC
 
 
 
 
 
 
 
 
100.0% - Hamlin Solar 1, LLC
 
 
 
 
 
 
 
100.0% - NSE Stag Industrial MA 1, LLC
 
 
 
 
 
 
 
100.0% - NSE Beacon Solar, LLC
 
 
 
 
 
 
 
 
100.0% - ISM Solar Cranston
 
 
 
 
 
 
 
100.0% - P52ES Raphael Rd Community Solar, LLC (White Marsh)
 
 
 
 
 
 
 
100.0% - P52ES 1755 Henryton Road Phase I, LLC
 
 
 
 
 
 
 
100.0% - P52ES 1755 Henryton Road Phase 2, LLC
 
 
 
 
 
 
 
100.0% - P52ES 12855 Frederick Road Phase 1, LLC (Triple Creek)
 
 
 
 
 
 
 
100.0% - Nautilus Helios Solar Blackpoint, LLC
 
 
 
 
 
 
 
 
100.0% - TPE King Solar Holdings1, LLC
 
 
 
 
 
 
 
 
100.0% - TPE King Solar Holdings2, LLC
 
 
 
 
 
 
 
100.0% - Nautilus Solar Construction Holdco, LLC
 
 
 
 
 
 
 
 
100.0% - TPE Hopkins Solar Holdings1, LLC
 
 
 
 
 
 
 
100.0% - Nautilus Slar Term Holdco, LLC
 
 
 
 
 
 
 
100.0% - Nautilus Solar Canada Inc.
 
 
 
 
 
 
 
 
100.0% - 2241091 Ontario Inc. GP
 
 
 
 
 
 
 
100.0% - Prowind Renewable Inc
 
 
 
 
 
 
 
 
- 100.0% - Bright Oak Solar
 
 
 
 
 
 
 
 
100.0% - River Valley Solar LLC
 
 
 
 
 
 
 
 
100.0% - Bright Hill Solar LLC
 
 
 
 
 
 
 
 
100.0% - Bright Field Solar LLC
 
 
 
 
 
 
 
100.0% - Virgo KAM MM Holdco, LLC
 
 
 
 
 
 
 
 
1.0% - Virgo KAM Holdco, LLC
 
 
 
 
 
 
 
 
 
100.0% - Lindstrom Solar LLC
 
 
 
 
 
 
 
 
 
100.0% - Winstead Solar LLC
 
 
 
 
 
 
 
 
 
100.0% - Saint Cloud Solar LLC
 
 
 
 
 
 
 
100.0% - VH Holdco I, LLC
 
 
 
 
 
 
 
 
1.0% – VH WB Holdco, LLC
 
 
 
 
 
 
 
 
 
100.0% - VH West Brookfield LLC
 
 
 
 
 
 
 
 
100% - VH Lordsburg Holdco, LLC
 
 
 
 
 
 
 
 
 
100.0% - Nautilus Solar Lordsburg, LLC
 
 
 
 
 
 
 
 
100.0% – VH Salem Holdco, LLC
 
 
 
 
 
 
 
 
 
100.0% - NS Salem Community College, LLC
 
 
 
 
 
 
 
 
100.0% - VH Kilroy Holdco, LLC
 
 
 
 
 
 
 
 
 
100.0% - VH Kilroy Solar, LLC
 
 
 
 
 
 
 
 
100.0% - VH BHA Holdco, LLC
 
 
 
 
 
 
 
 
 
100.0% - GES Megafourteen LLC
 
 
 
 
 
 
 
 
100.0% - Virgo Goat Island MM Holdco, LLC
 
 
 
 
 
 
 
 
 
1.0% - Virgo Goat Island Holdco, LLC
 
 
 
 
 
 
 
 
 
100.0% -Nautilus Goat Island Solar, LLC
 
 
 
 
 
 
 
 
100.0% – NS Belle Mead, LLC
 
C-36
 
 
 
 
 
60.51% - Lumenpulse Group Inc.
 
 
 
 
 
 
 
100.0% - Lumenpulse Finance Corp.
 
 
 
 
 
 
 
100.0% - Lumenpulse Lighting Corp.
 
 
 
 
 
 
 
 
80.93% - Sternberg Lanterns, Inc.
 
 
 
 
 
 
 
100.0% - Exenia s.r.l.
 
 
 
 
 
 
 
100.0% - Lumenpulse UK Limited
 
 
 
 
 
 
 
 
100.0% - Lumenpulse Alphaled Limited
 
 
 
 
 
 
44.15% - 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% - 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% - Sagard Healthcare Royalty Partners GP LLC
 
 
 
 
100.0% - Sagard Healthcare Royalty Partners, LP
 
 
 
100.0% - Portag3 Ventures GP Inc.
 
 
 
 
100.0% - Portag3 Ventures Participation ULC
 
 
 
 
100.0% - Portag3 Ventures Participation Inc.
 
 
 
 
100.0% - Portag3 Ventures Participation US LP
 
 
 
 
100.0% - Portag3 Ventures II Affiliates GP Inc.
 
 
 
 
 
 
 
100.0% - Portag3 Ventures II Affiliates LP
 
 
 
 
100.0% - Portag3 Ventures LP
 
 
 
 
 
 
 
100.0% - Portag3 International Investments Inc.
 
 
 
100.0% - Portag3 Ventures II GP Inc.
 
 
 
 
100.0% - Portage3 Ventures II LP
 
 
 
 
100.0% - Portag3 Ventures II Investments LP
 
 
 
 
 
 
 
100.0% - Portag3 Ventures II International Investments Inc.
 
 
 
 
100.0% - Portag3 Ventures II International LP
 
 
 
 
100.0% - Portag3 Ventures II International (FI) LP
 
 
 
 
100.0% - Portag3 Ventures II Carried Interest LP
 
 
 
 
100.0% - Portag3 Ventures II Carried Interest US LP
 
 
 
100.0% - Springboard III GP Inc.
 
 
 
 
100.0% - Springboard III LP
 
 
 
100.0% - Sagard Holdings ULC
 
 
 
 
4.0% - 1069759 B.C. Unlimited Liability Company
 
 
 
 
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.
 
 
 
 
 
 
 
21.4% - GP Strategies Corp.
 
 
 
 
 
 
 
4.23% - Jaguar Health Inc.
 
C-37
 
 
 
 
 
 
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% - Square Victoria Communications Group Inc.
 
 
 
100.0% - Gesca Ltee
 
 
 
 
 
100.0% Gestion Gesca Inc.
 
 
 
 
 
 
100.0% - 11249177 Canada Inc.
 
 
 
 
 
 
100.0% - 10206911 Canada Inc.
 
 
 
 
 
 
100.0% - Gesca Numerique Inc.
 
 
 
 
 
100.0% - 9214470 Canada Inc.
 
 
 
100.0% - Square Victoria Digital Properties Inc.
 
 
 
 
100.0% Les Editions Plus Ltee
 
 
 
 
50.0% - 1004096 Canada Inc. (“workopolis”)
 
H.
Other PFC Companies 
Power Financial Corporation
 
 
C-38
 
100.0% - 4400003 Canada Inc.
 
 
 
100.0% - 3411893 Canada Inc.
 
 
 
100.0% - 3439453 Canada Inc.
 
 
 
100.0% - PFC Ventures Inc.
 
 
 
 
100.0% - 9194649 Canada Inc.
 
 
 
 
 
100.0% - Springboard L.P.
 
 
 
 
 
 
75.95.% - Wealthsimple Financial Corp. (74.89% equity)
 
 
 
 
 
100.0% -
Wealthsimple Inc.
 
 
 
 
 
100.0% -
Wealthsimple
Advisor
Services Inc.
 
 
 
 
 
100.0% - Canadian
ShareOwner Investments Inc.
 
 
 
 
 
100.0% - CSA
Computing Inc.
 
 
 
 
 
100.0% -
Wealthsimple US,
Ltd.
 
 
 
 
 
100.0% -
Wealthsimple
Technologies Inc.
 
 
 
 
 
100.0% -
Wealthsimple Investments
US, Ltd.
 
 
 
 
 
50.10% -
Wealthsimple
Europe S.a.r.l
 
 
 
 
 
 
100.0% -
Wealthsimple
UK Ltd.
 
 
 
 
 
 
100.0% -
Wealthsimple
Germany
GmbH
 
 
 
 
 
 
100.0% -
Wealthsimple
Technologies
Europe Ltd
 
 
 
 
 
100.0% -
SimpleTax
Software Inc.
 
C-39
 
 
 
 
 
100.0% -
Wealthsimple
Payments Inc.
 
 
 
 
 
 
100.0% -
Wealthsimple
Digital Assets.
Inc.
 
 
 
100.0% - Springboard II LP
 
 
 
II.
OWNERSHIP BY POWER CORPORATION OF CANADA
Power Corporation of Canada has a voting interest in the following entities:
A.
Great-West Life & Annuity Insurance Company Group of Companies (U.S. insurance) 
Power Corporation of Canada
 
100.0% - 171263 Canada Inc.
 
 
64.057% - Power Financial Corporation
 
 
 
66.889% - Great-West Lifeco 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.
 
 
 
 
 
 
 
 
100.0% - 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% - Empower Retirement, LLC, 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% - 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
C-40
 
100.0% - 171263 Canada Inc.
 
 
64.057% - Power Financial Corporation
 
 
 
66.774% - Great-West Lifeco Inc.
 
 
 
 
 
100.0% - Great-West Financial (Nova Scotia) Co.
 
 
 
 
 
 
100.0% - 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, LLC
 
 
 
 
 
 
 
 
 
 
 
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% - 37 Capital General Partner, LLC
 
 
 
 
 
 
 
 
 
 
 
100.0% - 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.
 
 
64.057% - Power Financial Corporation
 
 
 
66.774% - Great-West Lifeco Inc.
 
 
 
 
 
100.0% - Great-West Lifeco U.S. LLC
 
 
 
 
 
 
 
100.0% Great-West Lifeco Finance 2019, LLC
 
 
 
 
 
 
 
 
 
 
99.0% - Great-West Lifeco Finance 2018, LP (1.0% owned by Great-West Lifeco U.S. LLC)
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Great-West Lifeco Finance 2018, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Great-West Lifeco Finance 2018 II, LLC
C-41
 
 
 
 
 
 
 
100.0% - Great-West Lifeco US Finance 2019, LP
 
 
 
 
 
 
 
 
 
 
100.0% - Great-West Lifeco US Finance 2019, LLC
 
 
 
 
 
 
 
100.0% - Great-West Lifeco US Finance 2019 I, LLC
 
 
 
 
 
 
 
100.0% - Great-West Lifeco US Finance 2019 II, LLC
 
 
 
 
 
 
 
1.0% - Great-West Lifeco Finance 2018, LP (99.0% owned by Great-West Lifeco Finance 2019, LLC)
 
 
 
 
18.5% - Portag3 Ventures LP
 
 
 
 
29.3% - Springboard II LP
 
 
 
 
33.3% - Portag3 Ventures II Affiliates LP
 
 
 
 
 
 
 
33.3% - Portag3 Ventures II LP
 
 
 
 
 
 
 
33.3% - Portag3 Ventures II International Investments Inc. 100.0% -2142540 Ontario Inc.
 
 
 
 
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.
 
 
 
 
99.0% - Great-West Lifeco Finance (Delaware) LP (1.0% owned by 2142540 Ontario Inc.)
 
 
 
 
 
 
 
100.0% Great-West Lifeco Finance 2017, LLC
 
 
 
 
100.0% - 2171866 Ontario Inc
 
 
 
 
100.0% - 2619747 Ontario Inc.
 
 
 
 
100.0% - 2142540 Ontario Inc.
 
 
 
 
 
 
 
1.0% - Great-West Lifeco Finance (Delaware) LP (99% owned by Great-West Lifeco Inc.)
 
 
 
 
 
 
 
 
 
 
40.0% - Great-West Lifeco Finance (Delaware) LLC (60.0% owned by The Great-West Life Assurance
Company)
 
 
 
 
 
 
 
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
 
 
 
 
 
20.0% - CDN US Direct RE Holdings Ltd. (45% London life Insurance Company, 23% The Canada Life Insurance Company of Canada, 12% The Canada Life
Assurance Company)
 
 
 
 
 
 
100.0% - Great-West US Direct RE Holdings Inc.
 
 
 
 
 
 
 
100.0% - GWL Direct 650 Almanor LLC
C-42
 
 
 
 
 
 
 
100.0% - GWL Direct 345 Cessna LLC
 
 
 
 
 
 
 
100.0% - CL GFP LLC
 
 
 
 
 
 
 
100.0% - GWL Direct 1 Bulfinch Place LLC
 
 
 
 
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% - EverWest Funds Advisors LLC
 
 
 
 
 
 
 
100.0% - GWL U.S. Property Fund GP LLC
 
 
 
 
 
 
 
100.0% - GWL Plus GP LLC
 
 
 
 
 
 
 
100.0% - GWL Plus II GP LLC
 
 
 
 
 
 
 
100.0% - GWL GP LLC
 
 
 
 
 
 
100.0% - GWLRA US Trust Company, LLC
 
 
 
 
 
 
 
100.0% - GWL RES GP 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% - GWL Realty Advisors Residential 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)
C-43
 
 
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)
 
 
 
 
 
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% - 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.
C-44
 
 
 
 
 
 
 
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
 
 
 
 
 
 
100.0% - 11658735 Canada Inc.
 
 
 
 
 
 
100.0%% - London Reinsurance Group, Inc.
 
 
 
 
 
 
 
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)
C-45
 
 
 
 
 
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% - TORCE Financial Group Inc.
 
 
 
 
 
 
 
100.0% - TORCE Investment Management Inc.
 
 
 
 
 
 
 
100.0% - VANCE Financial Group Inc.
 
 
 
 
 
 
 
100.0% - VANCE Investment 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 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
 
 
 
 
 
 
 
 
 
28% - JDC Group AG
 
 
 
 
 
 
 
 
 
 
100.0% - Jung, DMS & Cie.AG
 
 
 
 
 
 
 
 
 
 
 
100.0% - Jung, DMS & Cie. Fundmatrix AG
 
 
 
 
 
 
 
 
 
 
 
100.0% - Jung, DMS & Cie.Pro GmbH
 
 
 
 
 
 
 
 
 
 
 
100.0% - Jung, DMS & Cie.Pool GmbH
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - JDC Geld,de GmbH
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - JDC plus GmbH
 
 
 
 
 
 
 
 
 
 
100.0% - JDC B-LAB GmbH
 
 
 
 
 
 
 
 
 
 
100.0% - FINUM.PRIVATE Finance Holding GmbH (Germany)
 
 
 
 
 
 
 
 
 
 
 
100.0% - FINUM.Finanzhause AG
 
 
 
 
 
 
 
 
 
 
 
100.0% - FINUM.Pension Consulting GmbH
 
 
 
 
 
 
 
 
 
 
 
100.0% - FINUM.Private Finance AG
C-46
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - FVV – GmbH
 
 
 
 
 
 
 
 
 
 
100.0% - FINUM.PRIVATE Finance Holding GmbH (Austria)
 
 
 
 
 
 
 
 
 
 
 
100.0% - FINUM.Private Finance AG
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Jung, DMS & Cie. GmbH
 
 
 
 
 
 
 
 
 
 
 
 
 
51.0% - Jupoo finance GmbH
 
 
 
 
 
 
 
 
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% - Canada Life Re Ireland dac
 
 
 
 
 
 
 
 
 
100.0% - Canada Life Dublin dac
 
 
 
 
 
 
 
 
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% - 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% - Canada Life UK Staff Pension Trustee 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 SIPP 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
C-47
 
 
 
 
 
 
 
 
 
 
100.0% - Canada Life Ireland Holdings Limited.
 
 
 
 
 
 
 
 
 
100.0% - Irish Life Group Limited
 
 
 
 
 
 
 
 
 
 
100.0% - ILGAPT Limited
 
 
 
 
 
 
 
 
 
 
100.0% - ILGWM 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% - 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% - City Life Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
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% - Stephen Court 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
 
 
 
 
 
 
 
 
 
 
 
 
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.
 
 
 
 
 
 
 
 
45.0% - Wealthsimple Europe S.á.r.l.
 
 
 
 
 
 
 
 
 
100.0% - Wealthsimple UK Ltd.
 
 
 
 
 
 
 
 
 
100.0% - Wealthsimple Germany GmbH
 
 
 
 
 
 
 
 
 
100.0% - Wealthsimple Technologies Europe
 
 
 
 
 
100.0% - Canada Life Finance (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)
C-48
 
 
 
 
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% - CL Eastlake GP Inc.
 
 
 
 
 
0.001% - CL Eastlake LP (99.99% owned by The Canada Life Assurance Company)
 
 
 
 
99.99% - CL Eastlake LP (0.001% owned by CL Eastlake GP Inc.)
 
 
 
 
100.0% - CL Lago GP Inc.
 
 
 
 
 
0.001% - CL Lago LP (99.99% owned by The Canada Life Assurance Company)
 
 
 
 
99.99% - CL Lago LP (0.001% owned by CL 22 Chapel GP Inc.)
 
 
 
 
100.0% - CL 431 La Cienega GP Inc.
 
 
 
 
 
0.001% - CL 431 La Cienega LP (99.99% owned by The Canada Life Assurance Company)
 
 
 
 
99.99% - CL 431 La Cienega LP (0.001% owned by CL 431 La Cienega 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% - 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.
C-49
 
 
 
 
 
 
 
 
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.
 
 
64.057% - Power Financial Corporation
 
 
 
62.080% - IGM Financial Inc. (direct and indirect 65.948%)
 
 
 
 
100.0% - Investors Group Inc.
 
 
 
 
 
 
100.0% - Investors Group Financial Services Inc.
 
 
 
 
 
 
100.0% - I.G. International Management Limited
 
 
 
 
 
 
100.0% - 11249142 Canada Inc.
 
 
 
 
 
 
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% - 11263552 Canada Inc.
 
 
 
 
100.0% - Mackenzie Inc.
 
 
 
 
 
100.0% - Mackenzie Financial Corporation
 
 
 
 
 
 
100.0% - Mackenzie Investments Europe Limited
 
 
 
 
 
 
 
 
100.0% - Mackenzie Investments Asia Limited
 
 
 
 
 
 
100.0% - Mackenzie Investments Charitable Foundation
 
 
 
 
 
 
14.28% - Strategic Charitable Giving Foundation
 
 
 
 
 
 
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.
 
 
 
 
 
 
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.
C-50
 
 
 
 
 
 
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
 
 
 
 
18.54% - Portag3 Ventures LP
 
 
 
 
 
19.82% - Springboard LP
 
 
 
 
55.23% - Springboard LP
 
 
 
 
 
85.29% - WealthSimple Financial Corp.
 
 
 
 
29.33% - Springboard II LP
 
 
 
 
25.44% - Personal Capital Corporation
 
 
 
 
 
100.0% - Personal Capital Services Corporation
 
 
 
 
 
100.0% - Personal Capital Advisors Corporation
 
 
 
 
 
100.0% - Personal Capital Technology Corporation
 
 
 
 
33.3% - Portag3 Ventures II Affiliates LP
 
 
 
 
 
31.97% - Portag3 ventures II LP
E.
Pargesa Holding SA Group of Companies (European investments) 
Power Corporation of Canada
 
100.0% - 171263 Canada Inc.
 
 
64.057% - 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.
 
 
 
 
 
 
 
51.7% (taking into account the treasury shares - Groupe Bruxelles Lambert (50.0% in capital)
 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
 
12.0% - Pernod Ricard (7.5% in capital)
 
 
 
 
 
 
 
 
17.9% - 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 Lambert
 
 
 
 
 
 
 
 
 
 
0.1% - GEA
 
 
 
 
 
 
 
 
94.4% - FINPAR IV SA
 
 
 
 
 
 
 
 
 
 
0.1% - Groupe Bruxelles Lambert
 
 
 
 
 
 
 
 
 
 
0.1% - Imerys
 
 
 
 
 
 
 
 
1.2% - Sagerpar SA
 
 
 
 
 
 
 
 
100.0% - Belgian Securities BV
 
 
 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
 
 
 
 
67.6% - Imerys (53.9% in capital)
C-51
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
2.5% - 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% - RPCE Consulting SAS
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
1.1% - Total (0.6% in capital)
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Serena S.á.r.l.
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
 
 
 
 
 
 
16.7% - SGS
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Eliott Capital S.á.r.l.
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
 
 
 
 
 
 
7.6% - LafargeHolcim
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Sienna Capital S.á.r.l
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
 
 
 
 
 
 
100.00% - Sienna Capital London Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
100.0% Sienna Capital Invest SCSp
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
 
 
 
 
 
 
0.3% - Sagard II A FPCI
 
 
 
 
 
 
 
 
 
 
 
 
 
75.0% - Sagard II B FPCI
 
 
 
 
 
 
 
 
 
 
 
 
 
26.9% - Sagard 3 FPCI
 
 
 
 
 
 
 
 
 
 
 
 
 
29.6% - Kartesia Credit Opportunities III SCA, SICAV-SIF
 
 
 
 
 
 
 
 
 
 
 
 
 
17.2% - Kartesia Credit Opportunities IV SCS
 
 
 
 
 
 
 
 
 
 
 
 
 
22.2% - Kartesia Management SA
 
 
 
 
 
 
 
 
 
 
 
 
 
78.3% - PrimeStone Capital Fund ICAV
C-52
 
 
 
 
 
 
 
 
 
 
 
 
 
1.7% - PrimeStone Capital Special Limited Partner SCSp
 
 
 
 
 
 
 
 
 
 
 
 
 
9.8% - BDT Capital Partners Fund II (INT),L.P.
 
 
 
 
 
 
 
 
 
 
 
 
 
7.2% - Fund II – A Spirits, LP
 
 
 
 
 
 
 
 
 
 
 
 
 
16.4% - Matador Coininvestment SCSP
 
 
 
 
 
 
 
 
 
 
 
 
 
3.1% - Carlyle International Energy Partners II – EU SCSp
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Sienna Capital Participations S.á.r.l
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
 
 
 
 
 
 
10.8% - Sagard FCPR
 
 
 
 
 
 
 
 
 
 
 
 
 
50.0% - Ergon Capital Partners SA
 
 
 
 
 
 
 
 
 
 
 
 
 
42.4% - Ergon Capital Partners II SA
 
 
 
 
 
 
 
 
 
 
 
 
 
89.9% - Ergon Capital Parnters III SA
 
 
 
 
 
 
 
 
 
 
 
 
 
34.4% - Ergon Capital Partners IV, SCSp
 
 
 
 
 
 
 
 
 
 
 
 
 
15.9% - Ergon ospeo Long Term Value Fund SCSp
 
 
 
 
 
 
 
 
 
 
 
 
 
15.1% - Mérieux Participations SAS
 
 
 
 
 
 
 
 
 
 
 
 
 
34.3% - Mérieux Participations 2 SAS
 
 
 
 
 
 
 
 
 
 
 
 
 
34.9% - KKR Sigma Co-Invest II L.P.
 
 
 
 
 
 
 
 
 
 
 
 
 
6.87% - StreetTeam Software Limited (DBA as Pollen)
 
 
 
 
 
 
 
 
 
 
 
 
48.6% - Backed 1 LP
 
 
 
 
 
 
 
 
 
 
 
 
9.6% - Backed 1 Founder LP
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Backed Encore 1 LP
 
 
 
 
 
 
 
 
 
 
 
 
10.0% - Backed Encore 1 Founder LP
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Backed 2 LP
 
 
 
 
 
 
 
 
 
 
 
 
10.0% - Backed 2 Founder LP
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Marcho Partners Feeder Fund ICAV
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - GBL Finance S.á.r.l
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Miles Capital S.á.r.l
 
 
 
 
 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
 
 
 
 
 
23.1% - Piolin II S.á.r.l
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Piolin Spain SAU
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
 
 
 
 
 
 
99.5% - Parques Reunidos
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Oliver Capital S.á.r.l
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
 
 
 
 
 
 
8.4% - GEA
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Theo Capital S.á.r.l
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
 
 
 
 
 
 
6.8% - adidas
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Owen Capital S.á.r.l
 
 
 
 
 
 
 
 
 
 
 
 
3.5% - FINPAR II SA
 
 
 
 
 
 
 
 
 
 
 
 
4.4% - FINPAR III SA
 
 
 
 
 
 
 
 
 
 
 
 
5.6% - FINPAR IV SA
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Sapiens S.á.r.l
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
 
 
 
 
 
 
64.7% – Marnix Lux SA
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Marnix French ParentCo SAS
C-53
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Marnix French TopCo SAS
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Marnix SAS
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Courcelles Lux SCA
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Wowholdco SAS
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Wowmidco SAS
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Wowbidco SAS
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital
 
 
 
 
 
 
 
 
 
 
 
 
 
100.0% - Webhelp SAS
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
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% - Power Sustainable Capital Investments Inc.
 
 
 
100.0% - Power Pacific Investment Management Inc.
 
 
 
 
 
100.0% - Sagard China Absolute Return A Share Fund (Canada) GP Inc.
 
 
 
 
 
 
100.0% - Sagard China Absolute Return A Share Fund (Canada) LP
 
 
 
 
 
100.0% - Power Pacific Investment Management (Ireland) Limited
 
 
 
 
 
100.0% - Power Sagard (Shanghai) Investment Management Co., Ltd.
 
 
 
8.92% - Bellus Health Inc.
 
 
 
25.0% (voting) - 9314-0093 Québec Inc. (formerly Club de Hockey Les Remparts de Québec Inc.)
 
 
 
100.0% - Power Energy Corporation
C-54
 
 
 
 
 
100.0% - Potentia Renewables Inc.
 
 
 
 
 
 
75.0% - Paintearth Wind Project LP
 
 
 
 
 
 
100.0% - 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% - Musselshell Wind Holdings, LLC
 
 
 
 
 
 
 
100.0% - Musselshell Wind Project, LLC
 
 
 
 
 
 
 
100.0% - Musselshell Wind Project Two, LLC
 
 
 
 
 
 
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% - Solarize Holdings Corp.
 
 
 
 
 
100.0% - Potentia Solar Holdings Corp.
 
 
 
 
 
 
100.0%- Banjo Solar Holdings Corp.
 
 
 
 
 
 
64.0% - Potentia MN Solar Fund I, LLC
 
 
 
 
 
100.0% - Golden South Wind LP
 
 
 
 
 
100.0% - Potentia Renewables 15 LP (Affinity and RT Solar)
 
 
 
 
 
100.0% - Potentia Renewables 16 LP (Solar Gardens)
 
 
 
 
 
50.0% - Pokeshaw Windfarm LP
 
 
 
 
100.0% - Power Energy Corporation US
 
 
 
 
 
100.0% - Nautilus Solar Energy, LLC
 
 
 
 
 
 
100.0% - Nautilus Helios Solar Torsk, LLC
 
 
 
 
 
 
 
100.0% - Bulldog Solar One LLC
 
 
 
 
 
 
 
100.0% - Burns Solar One LLC
 
 
 
 
 
 
 
100.0% - MVR Solar One LLC
 
 
 
 
 
 
 
100.0% - Mason Solar One,LLC
 
 
 
 
 
 
 
100.0% - Pittman Solar One LLC
 
 
 
 
 
 
 
100.0% - Chesapeake Energy One, LLC
 
 
 
 
 
 
100.0% - Nautilus Solar Solutions, LLC
 
 
 
 
 
 
100.0% - Nautilus Castle Solar, LLC
 
 
 
 
 
 
100.0% - NSE Sackets Solar, LLC
 
 
 
 
 
 
 
100.0% - Clifton Park Solar 1, LLC
 
 
 
 
 
 
 
100.0% - Clifton Park Solar 2, LLC
 
 
 
 
 
 
 
100.0% - Hamlin Solar 1, LLC
 
 
 
 
 
 
100.0% - NSE Stag Industrial MA 1, LLC
C-55
 
 
 
 
 
 
100.0% - NSE Beacon Solar, LLC
 
 
 
 
 
 
 
100.0% - ISM Solar Cranston
 
 
 
 
 
 
100.0% - P52ES Raphael Rd Community Solar, LLC (White Marsh)
 
 
 
 
 
 
100.0% - P52ES 1755 Henryton Road Phase I, LLC
 
 
 
 
 
 
100.0% - P52ES 1755 Henryton Road Phase 2, LLC
 
 
 
 
 
 
100.0% - P52ES 12855 Frederick Road Phase 1, LLC (Triple Creek)
 
 
 
 
 
 
100.0% - Nautilus Helios Solar Blackpoint, LLC
 
 
 
 
 
 
 
100.0% - TPE King Solar Holdings1, LLC
 
 
 
 
 
 
 
100.0% - TPE King Solar Holdings2, LLC
 
 
 
 
 
 
100.0% - Nautilus Solar Construction Holdco, LLC
 
 
 
 
 
 
 
100.0% - TPE Hopkins Solar Holdings1, LLC
 
 
 
 
 
 
100.0% - Nautilus Slar Term Holdco, LLC
 
 
 
 
 
 
100.0% - Nautilus Solar Canada Inc.
 
 
 
 
 
 
 
100.0% - 2241091 Ontario Inc. GP
 
 
 
 
 
 
100.0% - Prowind Renewable Inc
 
 
 
 
 
 
 
- 100.0% - Bright Oak Solar
 
 
 
 
 
 
 
100.0% - River Valley Solar LLC
 
 
 
 
 
 
 
100.0% - Bright Hill Solar LLC
 
 
 
 
 
 
 
100.0% - Bright Field Solar LLC
 
 
 
 
 
 
100.0% - Virgo KAM MM Holdco, LLC
 
 
 
 
 
 
 
1.0% - Virgo KAM Holdco, LLC
 
 
 
 
 
 
 
 
100.0% - Lindstrom Solar LLC
 
 
 
 
 
 
 
 
100.0% - Winstead Solar LLC
 
 
 
 
 
 
 
 
100.0% - Saint Cloud Solar LLC
 
 
 
 
 
 
100.0% - VH Holdco I, LLC
 
 
 
 
 
 
 
1.0% – VH WB Holdco, LLC
 
 
 
 
 
 
 
 
100.0% - VH West Brookfield LLC
 
 
 
 
 
 
 
100% - VH Lordsburg Holdco, LLC
 
 
 
 
 
 
 
 
100.0% - Nautilus Solar Lordsburg, LLC
 
 
 
 
 
 
 
100.0% – VH Salem Holdco, LLC
 
 
 
 
 
 
 
 
100.0% - NS Salem Community College, LLC
 
 
 
 
 
 
 
100.0% - VH Kilroy Holdco, LLC
 
 
 
 
 
 
 
 
100.0% - VH Kilroy Solar, LLC
 
 
 
 
 
 
 
100.0% - VH BHA Holdco, LLC
 
 
 
 
 
 
 
 
100.0% - GES Megafourteen LLC
 
 
 
 
 
 
 
100.0% - Virgo Goat Island MM Holdco, LLC
 
 
 
 
 
 
 
 
1.0% - Virgo Goat Island Holdco, LLC
 
 
 
 
 
 
 
 
100.0% -Nautilus Goat Island Solar, LLC
 
 
 
 
 
 
 
100.0% – NS Belle Mead, LLC
 
 
 
 
 
60.51% - Lumenpulse Group Inc.
 
 
 
 
 
 
100.0% - Lumenpulse Finance Corp.
 
 
 
 
 
 
100.0% - Lumenpulse Lighting Corp.
 
 
 
 
 
 
 
80.93% - Sternberg Lanterns, Inc.
 
 
 
 
 
 
100.0% - Exenia s.r.l.
 
 
 
 
 
 
100.0% - Lumenpulse UK Limited
 
 
 
 
 
 
 
100.0% - Lumenpulse Alphaled Limited
 
 
 
 
 
44.15% - The Lion Electric Company
C-56
 
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% - 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% - Sagard Healthcare Royalty Partners GP LLC
 
 
 
100.0% - Sagard Healthcare Royalty Partners, LP
 
 
100.0% - Portag3 Ventures GP Inc.
 
 
 
100.0% - Portag3 Ventures Participation ULC
 
 
 
100.0% - Portag3 Ventures Participation Inc.
 
 
 
100.0% - Portag3 Ventures Participation US LP
 
 
 
100.0% - Portag3 Ventures II Affiliates GP Inc.
 
 
 
 
 
 
100.0% - Portag3 Ventures II Affiliates LP
 
 
 
100.0% - Portag3 Ventures LP
 
 
 
 
 
 
100.0% - Portag3 International Investments Inc.
 
 
100.0% - Portag3 Ventures II GP Inc.
 
 
 
100.0% - Portage3 Ventures II LP
 
 
 
100.0% - Portag3 Ventures II Investments LP
 
 
 
 
 
 
100.0% - Portag3 Ventures II International Investments Inc.
 
 
 
100.0% - Portag3 Ventures II International LP
 
 
 
100.0% - Portag3 Ventures II International (FI) LP
 
 
 
100.0% - Portag3 Ventures II Carried Interest LP
 
 
 
100.0% - Portag3 Ventures II Carried Interest US LP
 
 
100.0% - Springboard III GP Inc.
 
 
 
100.0% - Springboard III LP
 
 
100.0% - Sagard Holdings ULC
 
 
 
4.0% - 1069759 B.C. Unlimited Liability Company
 
 
 
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.
 
 
 
 
 
 
21.4% - GP Strategies Corp.
 
 
 
 
 
 
4.23% - 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
C-57
 
 
 
 
 
 
 
 
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% - Square Victoria Communications Group Inc.
 
 
100.0% - Gesca Ltee
 
 
 
 
100.0% Gestion Gesca Inc.
 
 
 
 
 
100.0% - 11249177 Canada Inc.
 
 
 
 
 
100.0% - 10206911 Canada Inc.
 
 
 
 
 
100.0% - Gesca Numerique Inc.
 
 
 
 
100.0% - 9214470 Canada Inc.
 
 
100.0% - Square Victoria Digital Properties Inc.
 
 
 
100.0% Les Editions Plus Ltee
 
 
 
50.0% - 1004096 Canada Inc. (“workopolis”)
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.
 
100.0% - PFC Ventures Inc.
C-58
 
 
100.0% - 9194649 Canada Inc.
 
 
 
100.0% - Springboard L.P.
 
 
85.29.% - Wealthsimple Financial Corp. (84.87% equity)
 
 
 
100.0% - Wealthsimple Inc.
 
 
 
100.0% - Wealthsimple Advisor Services Inc.
 
 
 
100.0% - Canadian ShareOwner Investments Inc.
 
 
 
100.0% - CSA Computing Inc.
 
 
 
100.0% - Wealthsimple US, Ltd.
 
 
 
100.0% - Wealthsimple Technologies Inc.
 
 
 
100.0% - Wealthsimple Investments US, Ltd.
 
 
 
51.00% - Wealthsimple Europe S.a.r.l
 
 
 
 
100.0% - Wealthsimple UK Ltd.
 
 
 
 
100.0% - Wealthsimple Germany GmbH
 
 
 
 
100.0% - Wealthsimple Technologies Europe Ltd
C-59
Item 29. Indemnification
Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
Provisions exist under the Colorado Business Corporation Act and the Bylaws of Great-West whereby Great-West may indemnify a director, officer or controlling person of Great-West against liabilities arising under the Securities Act of 1933. The following excerpts contain the substance of these provisions:
Colorado Business Corporation Act
Article 109 – INDEMNIFICATION
Section 7-109-101. Definitions.
As used in this article 109: 
(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 in any other capacity with,
another person or 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, arbitrative, or investigative and whether formal or informal.
Section 7-109-102. Authority to indemnify directors. 
(1)
Except as provided in subsection (4) of this section, a corporation may indemnify an individual made a party to a
proceeding, because the individual is or was a director, against liability incurred in the proceeding if:
 
(a)
The individual's conduct was in good faith; and
 
(b)
The individual reasonably believed:
C-60
 
 
(I)
In the case of conduct in an official capacity with the corporation, that the conduct was in the
corporation's best interests; and
 
 
(II)
In all other cases, that the conduct was at least not opposed to the corporation's best interests; and
 
(c)
In the case of any criminal proceeding, the individual had no reasonable cause to believe the individual'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, or conviction, or upon a plea of nolo contendere
or its equivalent does not, of itself, create a presumption that the director did not meet the relevant 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 except for reasonable expenses incurred in connection with the proceeding if it is
determined that the director has met the relevant standard of conduct under subsection (1) of this section; 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.
Section 7-109-103. Mandatory Indemnification of Directors.
Unless limited by its articles of incorporation, a corporation shall indemnify an individual who was wholly successful, on the merits or otherwise, in the defense of any proceeding to which the individual was a party because the individual is or was a director, against reasonable expenses incurred by the individual in connection with the proceeding.
Section 7-109-104. Advance of Expenses to Directors. 
(1)
A corporation may, before final disposition of a proceeding, pay for or reimburse the reasonable expenses
incurred by an individual who is a party to a proceeding because that person is a director if:
 
(a)
The director delivers to the corporation a written affirmation of the director's good faith belief that;
 
 
(I)
The director has met the relevant standard of conduct described in section 7-109-102; or
 
 
(II)
The proceeding involves conduct for which liability has been eliminated under a provision in the
articles of incorporation as authorized by section 7-102-102(2)(d); and
 
(b)
The director delivers to the corporation a written undertaking, executed personally or on the director's
behalf, to repay any funds advanced if the director is not entitled to mandatory indemnification under
section 7-109-103 and it is ultimately determined under section 7-109-105 or 7-109-106 that the director
has not met the relevant standard of conduct described in section 7-109-102.
(2)
The undertaking required by subsection (1)(b) of this section is 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)
Authorizations of payments under this section shall be made in the manner specified in section 7-109-106.
C-61
Section 7-109-105. Court-Ordered Indemnification of Directors. 
(1)
Unless otherwise provided in the articles of incorporation, a director who is or was a party to a proceeding may
apply for indemnification or an advance of expenses to the court conducting the proceeding or to another court
of competent jurisdiction. After receipt of an application and after giving any notice the court considers
necessary, the court may order indemnification or an advance of expenses 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 entitled to indemnification or an advance of expenses under section 7-
109-109(1), the court shall order indemnification or an advance of expenses, as applicable, in which case
the court shall also order the corporation to pay the director's reasonable expenses incurred to obtain court-
ordered indemnification or advance of expenses.
 
(c)
If it determines that the director is fairly and reasonably entitled to indemnification or an advance of
expenses 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), failed to comply with section 7-109-104, or was adjudged liable in the
circumstances described in section 7-109-102(4), the court may order such indemnification or advance of
expenses as the court deems proper; except that the indemnification with respect to any proceeding in
which liability has 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.
Section 7-109-106. Determination and Authorization of Indemnification of Directors. 
(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.
(2)
The determinations required by subsection (1) of this section must be made:
 
(a)
If there are two or more disinterested directors, by the board of directors by a majority vote of all the
disinterested directors, a majority of whom constitute a quorum for this purpose, or by a majority vote of a
committee of the board of directors appointed by such a vote, which committee consists of two or more
disinterested directors;
 
(b)
By independent legal counsel selected in the manner specified in subsection (2)(a) of this section or, if
there are fewer than two disinterested directors, by independent legal counsel selected by a majority vote of
the full board of directors; or
 
(c)
By the shareholders, but shares owned by or voted under the control of a director who at the time is not a
disinterested director may not be voted on the determination.
(3)
Authorization of indemnification and an advance of expenses must be made in the same manner as the
determination that indemnification or an advance of expenses is permissible; except that, if the determination
that indemnification or an advance of expenses is permissible is made by independent legal counsel,
authorization of indemnification and an advance of expenses must be made by the body that selected the
counsel.
Section 7-109-107. Indemnification of Officers, Employees, Fiduciaries, and Agents. 
(1)
An officer is entitled to mandatory indemnification or an advance of expenses under section 7-109-103, and is
entitled to apply for court-ordered indemnification or an advance of expenses under section 7-109-105, in each
case to the same extent as a director.
C-62
(2)
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.
(3)
A corporation may also indemnify and advance expenses to an officer, employee, fiduciary, or agent who is not
a director to such further extent as may be provided for by its articles of incorporation, bylaws, general or
specific action of its board of directors or shareholders, or contract. This subsection (3) applies to an officer who
is also a director if the basis on which the officer is made a party to the proceeding is an act or omission solely as
an officer.
Section 7-109-108. Insurance.
A corporation may purchase and maintain insurance on behalf of a person who is or was a director, officer, employee, fiduciary, or agent of the corporation, or who, while a director, officer, employee, fiduciary, or agent of the corporation, is or was serving at the request of the corporation as a director, officer, agent, associate, employee, fiduciary, manager, member, partner, promoter, or trustee of, or in any other capacity with, another person or an employee benefit plan, against liability asserted against or incurred by the person in that capacity or arising from the person's status as a director, officer, employee, fiduciary, or agent, whether or not the corporation would have power to indemnify the person against the same liability under section 7-109-102, 7-109-103, or 7-109-107. Any such insurance may be procured from any insurance company designated by the board of directors, whether the insurance company is formed under the law of this state or any other jurisdiction of the United States or elsewhere, including any insurance company in which the corporation has an equity or any other interest through stock ownership or otherwise.
Section 7-109-109. Variation by corporate action. 
(1)
A corporation may, by a provision in its articles of incorporation or bylaws or in a resolution adopted or a
contract approved by its board of directors or shareholders, obligate itself in advance of the act or omission
giving rise to a proceeding to provide indemnification in accordance with section 7-109-102 or advance funds to
pay for or reimburse expenses in accordance with section 7-109-104. Such an obligatory provision;
 
(a)
Satisfies the requirements for authorization, but not determination, referred to in section 7-109-106.
 
(b)
That obligates the corporation to provide indemnification to the fullest extent permitted by law obligates
the corporation to advance funds to pay for or reimburse expenses in accordance with section 7-109-104 to
the fullest extent permitted by law, unless the provision specifically provides otherwise.
(2)
A right of indemnification or to advances of expenses created by this article 109 or under subsection (1) of this
section and in effect at the time of an act or omission must not be eliminated or impaired with respect to the act
or omission by an amendment of the articles of incorporation or bylaws or a resolution of the board of directors
or shareholders, adopted after the occurrence of the act or omission, unless, in the case of a right created under
subsection (1) of this section, the provision creating the right and in effect at the time of the act or omission
explicitly authorizes the elimination or impairment after the act or omission has occurred.
(3)
A provision specified in subsection (1) of this section does not obligate the corporation to indemnify or advance
expenses to a director of a predecessor of the corporation pertaining to conduct with respect to the predecessor,
unless otherwise specifically provided. A provision for indemnification or an advance of expenses in the articles
of incorporation, bylaws, or a resolution of the board of directors or shareholders of a predecessor of the
corporation in a merger or in a contract to which the predecessor is a party, existing at the time the merger takes
effect, is governed by section 7-90-204(1).
(4)
Subject to subsection (2) of this section, a corporation may, by a provision in its articles of incorporation, limit
any of the rights to indemnification or an advance of expenses created by or pursuant to this article 109.
(5)
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.
C-63
Section 7-109-110. Notice to Shareholders of Indemnification of Director.
If a corporation indemnifies or advances expenses to a director under this article in connection with a proceeding by or in the right of the corporation, the corporation shall give written notice of the indemnification or advance to the shareholders with or before the notice of the next shareholders' meeting. If the next shareholder action is taken without a meeting at the instigation of the board of directors, such notice shall be given to the shareholders at or before the time the first shareholder signs a writing consenting to such action.
Bylaws of Great-West
Article IV. Indemnification
SECTION 1. In this Article, the following terms shall have the following meanings: 
 
(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.
SECTION 2. Subject to applicable law, if any person who is or was a director, officer or employee of the corporation is made a party to a proceeding because the person is or was a director, officer or employee of the corporation, the corporation shall indemnify the person, or the estate or personal representative of the person, from and against all liability and expenses incurred by the person in the proceeding (and advance to the person expenses incurred in the proceeding) if, with respect to the matter(s) giving rise to the proceeding: 
 
(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.
SECTION 3. Subject to applicable law, if any person who is or was serving as a director, officer, trustee or employee of another company or entity at the request of the corporation is made a party to a proceeding because the person is or was serving as a director, officer, trustee or employee of the other company or entity, the corporation shall indemnify the person, or the estate or personal representative of the person, from and against all liability and expenses incurred by the person in the proceeding (and advance to the person expenses incurred in the proceeding) if: 
 
(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
C-64
 
 
(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.
Item 30. Principal Underwriter 
 
(a)
IDI is the principal underwriter of the Policy as defined in the Investment Company Act of 1940. IDI is also
principal underwriter for the Protective Variable Annuity Separate Account, Protective Variable Life
Separate Account, PLICO Variable Annuity Account S, Protective COLI VUL, Protective COLI PPVUL,
Variable Annuity Separate Account A of Protective Life, PLAIC Variable Annuity Account S, and
Protective NY COLI VUL. The principal underwriter, IDI, is also currently distributing units of interest in
the following separate accounts, including those of the Registrant: Variable Annuity-1 Series Account of
Great-West Life & Annuity Insurance Company, Variable Annuity-1 Series Account of Great-West Life &
Annuity Insurance Company of New York, Variable Annuity-2 Series Account of Great-West Life &
Annuity Insurance Company, Variable Annuity-2 Series Account of Great-West Life & Annuity Insurance
Company, Variable Annuity-3 Series Account of Great-West Life & Annuity Insurance Company, COLI
VUL-2 Series Account of Great-West Life & Annuity Insurance Company, COLI VUL-2 Series Account of
Great-West Life & Annuity Insurance Company of New York, COLI VUL-4 Series Account of Great-West
Life & Annuity Insurance Company, Maxim Series Account of Great-West Life & Annuity Insurance
Company, Prestige Variable Life Account of Great-West Life & Annuity Insurance Company, Pinnacle
Series Account of Great-West Life & Annuity Insurance Company, Trillium Variable Annuity Account of
Great-West Life & Annuity Insurance Company.
 
(b)
Directors and Officers of IDI:
 
Name
Principal Business Address
Positions and Offices with Underwriter
B.K. Brown
2801 Highway 280 South, Birmingham,
Alabama, 35223
President and Director
B.P. Coffman
2801 Highway 280 South, Birmingham,
Alabama, 35223
Assistant Financial Officer
S. E. Creutzmann
2801 Highway 280 South, Birmingham,
Alabama, 35223
Chief Compliance Officer and Director
L.J. Debnar
2801 Highway 280 South, Birmingham,
Alabama, 35223
Assistant Financial Officer
J.F. Gilmer
2801 Highway 280 South, Birmingham,
Alabama, 35223
Assistant Financial Officer and Director
J.G. Johnson
2801 Highway 280 South, Birmingham,
Alabama, 35223
Assistant Compliance Officer
F.M. Lee
2801 Highway 280 South, Birmingham,
Alabama, 35223
Secretary
C.L. Majewski
2801 Highway 280 South, Birmingham,
Alabama, 35223
Assistant Compliance Officer
L. Morsch
2801 Highway 280 South, Birmingham,
Alabama, 35223
Assistant Secretary
J.B. Smith
2801 Highway 280 South, Birmingham,
Alabama, 35223
Assistant Secretary
R. Tennent
2801 Highway 280 South, Birmingham,
Alabama, 35223
Chief Financial Officer
 
 
(c)
Commissions and other compensation received by Principal Underwriter, directly or indirectly, from the
Registrant during Registrant’s last fiscal year:
 
C-65
Name of Principal
Underwriter
Net Underwriting
Discounts and
Commissions
Compensation
on Redemption
Brokerage
Commissions
Compensation
IDI
N/A
None
N/A
N/A
GWFS    0     0   0    0
Item 31. Location of Accounts and Records
All accounts, books, or other documents required to be maintained by Section 31(a) of the Investment Company Act of 1940 and the rules promulgated thereunder are maintained by the Registrant through the Depositor, 8515 East Orchard Road, Greenwood Village, Colorado 80111 and at 2801 Highway 280 South, Birmingham, Alabama 35223.
Item 32. Management Services
Not Applicable.
Item 33. Fee Representation.
The Depositor represents that the fees and charges deducted under the Policy, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by the Depositor.
C-66
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for effectiveness of this registration statement under rule 485(b) under the Securities Act and has duly caused this registration statement to be signed on its behalf by the undersigned, duly authorized, in the City of Greenwood Village, and State of Colorado, on this 10th day of May, 2021. 
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
Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed below by the following persons in the capacities and on the dates indicated. 
Signature
Title
Date
/s/ R. Jeffrey Orr
Chairman of the Board
May 10, 2021
R. Jeffrey Orr*
/s/ Edmund F. Murphy III
President and Chief
Executive Officer
May 10, 2021
Edmund F. Murphy III
/s/ Andra S. Bolotin
Executive Vice President,
Chief Financial Officer &
Principal Accounting Officer
May 10, 2021
Andra S. Bolotin
/s/ John L. Bernbach
Director
May 10, 2021
John L. Bernbach*
/s/ Robin Bienfait
Director
May 10, 2021
Robin Bienfait*
 
 
/s/ Jeff Carney
Director
May 10, 2021
Jeff Carney*
 
 
/s/ Marcel R. Coutu
Director
May 10, 2021
Marcel R. Coutu*
 
 
/s/ André R. Desmarais
Director
May 10, 2021
André R. Desmarais*
 
 
/s/ Paul G. Desmarais, Jr.
Director
May 10, 2021
Paul G. Desmarais, Jr.*
 
 
 
Director
 
Gary A. Doer
 
 
Signature
Title
Date
/s/ Gregory J. Fleming
Director
May 10, 2021
Gregory J. Fleming*
 
 
/s/ Claude Généreux
Director
May 10, 2021
Claude Généreux*
 
 
/s/ Alain Louvel
Director
May 10, 2021
Alain Louvel*
 
 
/s/ Paula B. Madoff
Director
May 10, 2021
Paula B. Madoff*
 
 
/s/ Paul A. Mahon
Director
May 10, 2021
Paul A. Mahon*
 
 
/s/ Robert L. Reynolds
Director
May 10, 2021
Robert L. Reynolds*
 
 
/s/ T. Timothy Ryan, Jr.
Director
May 10, 2021
T. Timothy Ryan, Jr.*
 
 
/s/ Jerome J. Selitto
Director
May 10, 2021
Jerome J. Selitto*
 
 
/s/ Gregory D. Tretiak
Director
May 10, 2021
Gregory D. Tretiak*
 
 
/s/ Brian E. Walsh
Director
May 10, 2021
Brian E. Walsh*
 
 
 
 
 
*By:
/s/ Ryan L. Logsdon
*Attorney-in-fact pursuant to
Power of Attorney
May 10, 2021
 
Ryan L. Logsdon