UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-01525
ALLSTATE ASSURANCE COMPANY
SEPARATE ACCOUNT B
(Exact name of Registrant as specified in charter)
3100 Sanders Road, Suite J5B
Northbrook, IL 60062
(Address of principal executive offices)
Director of Illinois
Department of Insurance
320 West Washington Street
Springfield, IL 62767
(Name and address of agent for service)
Registrant’s telephone number, including area code: (847) 402-5000
Date of fiscal year end: December 31
Date of reporting period: January 31, 2006 - December 31, 2006
Item 1. | Reports to Stockholders. |
Annual Report
December 31, 2006
Board of Managers
Separate Account B:
David G. Fussell, Chairman
H. Grant Law, Jr.
Henry E. Blaine
PRINCIPAL OFFICERS OF
ALLSTATE ASSURANCE COMPANY
Casey J. Sylla, Chairman of the Board and President
Anson J. Glacy, Jr., Vice President
Michael J. Velotta, Secretary and General Counsel
John C. Lounds, Senior Vice President
John C. Pintozzi, Senior Vice President and Chief Financial Officer
Steven C. Verney, Treasurer
Samuel H. Pilch, Group Vice President and Controller
Karen C. Gardner, Vice President-Tax
Eric A. Simonson, Senior Vice President and Chief Investment Officer
Joseph P. Rath, Assistant General Counsel and Secretary
Thomas W. Evans, Senior Vice President
Susan N. Roth, Chief Compliance Officer
ALLSTATE ASSURANCE COMPANY
SEPARATE ACCOUNT B
A separate account of
Allstate Assurance Company
This report and the financial statements attached are submitted solely for the general information of contractowners of Allstate Assurance Company Separate Account B and are not authorized for other use.
MESSAGE TO PARTICIPANTS IN
ALLSTATE ASSURANCE COMPANY
VARIABLE ANNUITY CONRACTS
This annual report of Separate Account B contains the financial statements and portfolio information of Separate Account B for the year ended December 31, 2006. Comparative figures that relate to Separate Account B’s activities during the year of 2006 are provided below.
The accumulation value for Separate Account B increased 9.04% for the year 2006 from $15.37 at year-end 2005 to $16.76 on December 31, 2006. During this same period, the S&P 500 index increased by a total return of 15.79%. Reflecting transfers to the fixed-dollar account, as well as withdrawals and retirements, the number of accumulation units outstanding on December 31, 2006 was 120,312, down from 155,903 at year-end 2005. As a result of withdrawals and changes in the accumulation unit value, total contractowners’ equity on December 31, 2006 was $2,503,950 compared to $2,951,319 on December 31, 2005.
The major U.S. and global equity indexes finished strong for the second half of 2006, including the aforementioned increase in the S&P 500 index, the NASDAQ up over 10% and the Russell 2000 index, which was up 18.37%. As the fourth quarter wound down, the Federal Reserve maintained Fed Funds rates at 5.25% and left future rate changes with a continued “data dependant” stance. The consumer sector remains weak, while business spending has continued to support the economy. While the outlook for equities remains favorable, the risks of the market include continued high oil prices, uncertain Federal Reserve movements and the weak housing market. We continue to believe your portfolio is positioned properly with leading companies in their respective sectors.
Thank you for your continued support.
/s/ David G. Fussell |
David G. Fussell |
Chairman, Board of Managers |
Allstate Assurance Company |
Separate Account B |
Additional Information.
REMUNERATION OF MEMBERS OF THE BOARD OF MANAGERS
Unum Group paid all expenses relative to the operation of the Separate Account including Board of Managers’ fees. Accordingly, no member of the Board of Managers receives any remuneration from the Separate Account. Each Board member, other than David G. Fussell, receives an annual retainer of $4,500.00 for serving on the Board. Mr. Fussell received no remuneration from the Company based on his membership on the Board.
PROXY VOTING POLICIES
A description of the Separate Account’s proxy voting policy and procedures is available without charge, upon written request, from the Secretary of the Board of Managers. Please send a written request to the Secretary of the Board of Managers, c/o Unum Group at 1 Fountain Square, Chattanooga, Tennessee 37402. You may also view a description of the Separate Account’s proxy voting policy and procedures on the SEC’s (Securities and Exchange Commission) website, www.sec.gov.
Information regarding how the Separate Account voted proxies relating to portfolio securities during the most recent 12-month period ended is available via the methods noted above.
QUARTERLY FILING REQUIREMENTS
In November 2004, the Separate Account began filing its complete schedule of investments with the Securities and Exchange Commission for the first and third quarter of each fiscal year on Form N-Q, which when filed, is available without charge, upon written request, from the Secretary of the Board of Managers. Please send a written request to the Secretary of the Board of Managers, c/o Unum Group at 1 Fountain Square, Chattanooga, Tennessee 37402. You may also view its complete schedule of investments on Form N-Q on the SEC’s (Securities and Exchange Commission) website, www.sec.gov.
STATEMENT OF ADDITIONAL INFORMATION
The Statement of Additional Information (SAI) includes additional information about members of the board of managers of the Registrant, and is available, without charge, upon request, toll-free at (800) 718-8824 for Contractowners who call to request the SAI.
INFORMATION CONCERNING MEMBERS OF THE BOARD OF MANAGERS
(1) |
(2) |
(3) |
(4) |
(5) |
(6) | |||||
Name, Address, and Age |
Position(s) Held with |
Term of Office and |
Principal |
Number of Separate Account |
Other Directorships | |||||
Henry E. Blaine (77) 403 Country Club View Drive Edwardsville, IL 62025 |
Member, Board of Managers |
2006-2007 29 years of service |
B&B Enterprises, Partner | 1 | None | |||||
H. Grant Law, Jr. (60) P.O. Box 1367 Chattanooga, TN 37401 |
Member, Board of Managers |
2006-2007 15 years of service |
President, Newton Chevrolet, Inc.; President, Newton Oldsmobile – GMC Trucks Mitsubishi, Inc. | 1 | None |
The member of the Board of Managers listed below is an “interested person” of the Separate Account within the meaning of section 2(a)(19) of the Investment Company Act of 1940.
Name, Address, and Age |
Position(s) Held with |
Term of Office and |
Principal |
Number of Separate Account |
Other Directorships | |||||
David G. Fussell* (59) 1 Fountain Square Chattanooga, TN 37402 |
Chairman Board of Managers |
2006-2007 12 years of service |
Senior Vice President of Unum Group, Chattanooga, Tennessee | 1 | None |
* | Officer of PRIMCO (the investment sub-advisor of the Separate Account) and other subsidiaries within the Unum Group holding company system. |
None of the members of the Board of Managers who are not “interested persons” of the Separate Account within the meaning of section 2(a)(19) of the Investment Company Act of 1940 owns beneficially or of record securities of the Company or any of its affiliates.
AUDITED FINANCIAL STATEMENTS
Allstate Assurance Company Separate Account B
As of December 31, 2006 and
For the Years Ended December 31, 2006 and 2005
Allstate Assurance Company Separate Account B
Audited Financial Statements
December 31, 2006
1 | ||
2 | ||
3 | ||
Statements of Changes in Variable Annuity Contract Owners’ Equity |
4 | |
5 | ||
8 | ||
9 | ||
11 |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Managers and Contract Owners
Allstate Assurance Company Separate Account B,
And Board of Directors of Allstate Assurance Company
We have audited the accompanying statement of assets and liabilities of Allstate Assurance Company Separate Account B (the “Separate Account”), including the schedule of investments, as of December 31, 2006, and the related statements of operations, for the year then ended, the statement of changes in variable annuity contract owners’ equity for the two years in the period then ended, and the financial highlights for each of the two years in the period then ended. These financial statements and financial highlights are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit. The financial highlights fro the years ended prior to December 31, 2005 were audited by other auditors whose report dated February 9, 2005, expressed an unqualified opinion on those financial highlights.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Separate Account is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Separate Account’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2006, by correspondence with the custodian and brokers. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Allstate Assurance Company Separate Account B as of December 31, 2006, and the results of its operations for the year then ended, the changes in its variable annuity contract owners’ equity for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Chicago, Illionis
February 28, 2007
1
STATEMENT OF ASSETS AND LIABILITIES
Allstate Assurance Company Separate Account B
December 31, 2006 | |||
ASSETS |
|||
Common stocks—at market value |
$ | 2,503,747 | |
Cash |
15,542 | ||
Accrued dividends |
2,900 | ||
TOTAL ASSETS |
$ | 2,522,189 | |
LIABILITIES AND CONTRACT OWNERS’ EQUITY |
|||
Amounts payable for terminations and variable annuity benefits |
$ | 17,075 | |
Management fee and other amounts due Allstate Assurance Company |
1,164 | ||
TOTAL LIABILITIES |
18,239 | ||
Contract owners’ equity: |
|||
Deferred annuity contracts terminable by owners—(accumulation units outstanding: 120,312.428; unit value: $16.756791) |
2,016,050 | ||
Annuity contracts in pay-out period —(annuitization units outstanding: 29,116.517; unit value: $16.756791) |
487,900 | ||
TOTAL CONTRACT OWNERS’ EQUITY |
$ | 2,503,950 | |
See accompanying notes to financial statements.
2
Allstate Assurance Company Separate Account B
Year Ended December 31, 2006 | |||
INVESTMENT INCOME |
|||
Income: |
|||
Dividends |
$ | 40,591 | |
Expenses — Note C: |
|||
Investment advisory services |
12,957 | ||
Mortality and expense assurances |
18,139 | ||
31,096 | |||
NET INVESTMENT INCOME |
9,495 | ||
REALIZED AND UNREALIZED GAIN ON INVESTMENTS—NOTE A |
|||
Net realized gain from investment transactions (excluding short-term securities): |
|||
Proceeds from sales |
730,799 | ||
Cost of investments sold |
543,182 | ||
Net realized gain |
187,617 | ||
Net unrealized appreciation of investments: |
|||
At end of year |
1,298,963 | ||
At beginning of year |
1,261,934 | ||
Increase in net unrealized appreciation of investments |
37,029 | ||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS |
224,646 | ||
INCREASE IN CONTRACT OWNERS’ EQUITY FROM INVESTMENT ACTIVITIES |
$ | 234,141 | |
See accompanying notes to financial statements.
3
STATEMENTS OF CHANGES IN VARIABLE ANNUITY CONTRACT OWNERS’ EQUITY
Allstate Assurance Company Separate Account B
Year Ended December 31 | ||||||||
2006 | 2005 | |||||||
BALANCE AT BEGINNING OF PERIOD |
$ | 2,951,319 | $ | 3,362,150 | ||||
FROM INVESTMENT ACTIVITIES: |
||||||||
Net investment income |
9,495 | 2,080 | ||||||
Net realized gain (loss) on investments |
187,617 | (29,263 | ) | |||||
Increase in net unrealized appreciation of investments |
37,029 | 66,393 | ||||||
Increase in contract owners’ equity from investment activities |
234,141 | 39,210 | ||||||
FROM VARIABLE ANNUITY CONTRACT TRANSACTIONS: |
||||||||
Terminations and death benefits (Units terminated): |
||||||||
2006— 35,590.556; |
(570,560 | ) | (339,789 | ) | ||||
2005— 23,210.710; |
||||||||
Variable annuity benefits paid (Number of units): |
||||||||
2006— 6,989.938; |
(110,950 | ) | (110,252 | ) | ||||
2005— 7,521.621; |
||||||||
Decrease in contract owners’ equity from variable annuity contract transactions |
(681,510 | ) | (450,041 | ) | ||||
NET DECREASE IN CONTRACT OWNERS’ EQUITY |
(447,369 | ) | (410,831 | ) | ||||
BALANCE AT END OF PERIOD |
$ | 2,503,950 | $ | 2,951,319 | ||||
See accompanying notes to financial statements.
4
Allstate Assurance Company Separate Account B
December 31, 2006
Number of Shares |
Market Value | ||||
COMMON STOCKS |
|||||
CAPITAL GOODS (17.2%) |
|||||
Emerson Electric Company |
1,600 | $ | 70,512 | ||
General Electric Company |
3,400 | 126,514 | |||
Textron, Inc. |
1,150 | 107,836 | |||
Tyco International, Ltd. |
4,100 | 124,640 | |||
429,502 | |||||
CONSUMER GOODS (11.3%) |
|||||
Lowe’s Companies, Inc. |
3,600 | 112,140 | |||
Masco Corporation |
3,000 | 89,610 | |||
PepsiCo, Inc. |
1,300 | 81,315 | |||
283,065 | |||||
CONSUMER SERVICES (5.2%) |
|||||
Comcast Corporation, Class A * |
1,350 | 56,538 | |||
Wal-Mart Stores, Inc. |
1,600 | 73,888 | |||
130,426 | |||||
ENERGY (17.5%) |
|||||
Dominion Resources, Inc. |
1,250 | 104,800 | |||
Grant Prideco, Inc. * |
2,400 | 95,448 | |||
Schlumberger, Ltd. |
1,800 | 113,688 | |||
Weatherford International, Inc. * |
3,000 | 125,370 | |||
439,306 |
See accompanying notes to financial statements.
5
SCHEDULE OF INVESTMENTS - Continued
Allstate Assurance Company Separate Account B
December 31, 2006
Number of Shares |
Market Value | ||||
COMMON STOCKS - Continued |
|||||
FINANCIAL (18.9%) |
|||||
American Express Company |
2,600 | $ | 157,742 | ||
Bank of America Corporation |
2,000 | 106,780 | |||
Citigroup, Inc. |
1,500 | 83,550 | |||
J.P. Morgan Chase and Co. |
1,650 | 79,695 | |||
Western Union Company |
2,000 | 44,840 | |||
472,607 | |||||
HEALTH CARE (3.5%) |
|||||
Johnson & Johnson |
764 | 50,439 | |||
Medtronic, Inc. |
700 | 37,457 | |||
87,896 | |||||
TECHNOLOGY - HARDWARE (8.8%) |
|||||
Cisco Systems, Inc. * |
5,500 | 150,315 | |||
Intel Corporation |
3,400 | 68,850 | |||
219,165 | |||||
TECHNOLOGY - SOFTWARE & SERVICES (10.1%) |
|||||
First Data Corporation |
2,800 | 71,456 | |||
Microsoft Corporation |
3,200 | 95,552 | |||
Yahoo!, Inc. * |
3,400 | 86,836 | |||
253,844 |
See accompanying notes to financial statements.
6
SCHEDULE OF INVESTMENTS - Continued
Allstate Assurance Company Separate Account B
December 31, 2006
Number of Shares |
Market Value | ||||
COMMON STOCKS - Continued |
|||||
TELECOMMUNICATIONS (7.5%) |
|||||
Corning, Inc. * |
3,400 | $ | 63,614 | ||
Motorola, Inc. |
2,500 | 51,400 | |||
Vodafone Airtouch, PLC - ADR |
2,625 | 72,922 | |||
187,936 | |||||
TOTAL COMMON STOCK (100.0%) |
2,503,747 | ||||
TOTAL INVESTMENTS (100.0%) |
2,503,747 | ||||
CASH AND RECEIVABLES LESS LIABILITIES (0.0%) |
203 | ||||
TOTAL CONTRACT OWNERS’ EQUITY (100.0%) |
$ | 2,503,950 | |||
* | Non-income producing security |
ADR – American Depository Receipt
See accompanying notes to financial statements.
7
Allstate Assurance Company Separate Account B
Selected data for an accumulation unit outstanding (including both deferred annuity contracts terminable by owners and annuity contracts in pay-out period) throughout each period excluding sales loads:
Year Ended December 31 | ||||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||
Investment income |
$ | 0.25 | $ | 0.19 | $ | 0.23 | $ | 0.11 | $ | 0.11 | ||||||||||
Expenses |
0.19 | 0.18 | 0.18 | 0.14 | 0.15 | |||||||||||||||
Net investment income (loss) |
0.06 | 0.01 | 0.05 | (0.03 | ) | (0.04 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments |
1.33 | .27 | 1.16 | 3.72 | (5.07 | ) | ||||||||||||||
Net increase (decrease) in contract owners’ equity |
1.39 | .28 | 1.21 | 3.69 | (5.11 | ) | ||||||||||||||
Net contract owners’ equity: |
||||||||||||||||||||
Beginning of year |
15.37 | 15.09 | 13.88 | 10.19 | 15.30 | |||||||||||||||
End of year |
$ | 16.76 | $ | 15.37 | $ | 15.09 | $ | 13.88 | $ | 10.19 | ||||||||||
Total Return |
9.04 | % | 1.86 | % | 8.72 | % | 36.21 | % | (33.40 | %) | ||||||||||
Ratio of expenses to average contract owners’ equity |
1.20 | % | 1.20 | % | 1.20 | % | 1.21 | % | 1.19 | % | ||||||||||
Ratio of net investment income (loss) to average contract owners’ equity |
0.37 | % | 0.07 | % | 0.38 | % | (0.25 | %) | (0.34 | %) | ||||||||||
Portfolio turnover |
2 | % | 6 | % | 5 | % | 0 | % | 1 | % | ||||||||||
Number of deferred annuity contracts terminable by owners accumulation units outstanding at end of year |
120,312 | 155,903 | 179,114 | 205,266 | 211,880 |
See accompanying notes to financial statements.
8
Allstate Assurance Company Separate Account B
December 31, 2006
NOTE A—INVESTMENTS AND ACCOUNTING POLICIES
Allstate Assurance Company Separate Account B (“Separate Account B”) is a segregated investment account of Allstate Assurance Company (formerly Provident National Assurance Company) and is registered under the Investment Company Act of 1940, as amended, as an open-end diversified management investment company. Certain administrative services of Separate Account B are provided by The Variable Annuity Life Insurance Company (“VALIC”) under a contract dated May 15, 1998. These services include processing of unit transactions and daily unit value calculations subsequent to December 1, 1998 as well as accounting and other services. On February 1, 2001 UnumProvident Corporation sold the Provident National Assurance Company corporate shell, including the Separate Account B assets and liabilities, to Allstate Life Insurance Company. This transaction had no impact on the contract owners of Separate Account B.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in those statements and accompanying notes. Actual results may differ from such estimates.
Common stocks are valued at published market quotations which represent the closing sales price for securities traded on a national stock exchange or the mean between the quoted bid and asked prices for those traded over-the-counter.
Realized and unrealized gains and losses are credited to, or charged to, contract owners’ equity. The identified cost basis has been used in determining realized gains and losses on sales of investments. There were gross unrealized gains of $1,298,963 and no gross unrealized losses at December 31, 2006. Security transactions are recorded on a trade date basis. Dividends are taken into income on an accrual basis as of the ex-dividend date.
A summary of the cost of investments purchased and proceeds from investments sold for the year ended December 31, 2006 is shown below.
Year Ended December 31, 2006 | |||
Cost of investments purchased |
$ | 46,038 | |
Proceeds from investments sold |
$ | 730,799 | |
The aggregate cost of investments for federal income tax purposes is the same as that presented in the Statements of Assets and Liabilities.
9
NOTES TO FINANCIAL STATEMENTS - Continued
Allstate Assurance Company Separate Account B
December 31, 2006
NOTE B—FEDERAL INCOME TAXES
Operations of Separate Account B will form a part of the income tax return of Allstate Assurance Company, which is taxed as a “life insurance company” under the Internal Revenue Code.
Under current law, no federal income taxes are payable with respect to Separate Account B.
NOTE C—EXPENSES
Deductions are made by Allstate Assurance Company at the end of each valuation period for investment advisory services and for mortality and expense assurances, which on an annual basis are approximately .50% and .70%, respectively, of the net assets of Separate Account B.
10
ACCUMULATION UNIT VALUE TABLE (Unaudited)
Allstate Assurance Company Separate Account B
End of Month |
Accumulation Unit Value | |
December 1968 |
1.036279 | |
December 1969 |
1.080379 | |
December 1970 |
1.030039 | |
December 1971 |
1.178612 | |
December 1972 |
1.403795 | |
December 1973 |
1.126624 | |
December 1974 |
0.863269 | |
December 1975 |
1.022844 | |
December 1976 |
1.156853 | |
December 1977 |
1.064425 | |
December 1978 |
1.094150 | |
December 1979 |
1.219189 | |
December 1980 |
1.555258 | |
December 1981 |
1.473246 | |
December 1982 |
1.812441 | |
December 1983 |
2.132092 | |
December 1984 |
2.029912 | |
December 1985 |
2.480050 | |
December 1986 |
2.743444 | |
December 1987 |
2.734169 | |
December 1988 |
3.087892 | |
December 1989 |
3.812606 | |
December 1990 |
3.736441 | |
December 1991 |
5.036212 | |
December 1992 |
5.028547 | |
December 1993 |
5.646864 | |
December 1994 |
5.410722 | |
December 1995 |
6.908158 | |
March 1996 |
7.309625 | |
June |
7.593667 | |
September |
7.851947 | |
December |
8.435567 | |
March 1997 |
8.468896 | |
June |
10.238554 | |
September |
11.146167 | |
December |
11.384926 | |
March 1998 |
12.975484 | |
June |
13.465013 | |
September |
11.758633 | |
December |
15.192155 | |
March 1999 | 15.889579 | |
June | 17.218781 | |
September | 15.844714 | |
December | 19.180992 | |
March 2000 | 19.749348 | |
June | 19.048870 | |
September | 17.707495 | |
December | 16.659801 | |
March 2001 | 14.835643 | |
June | 16.233254 | |
September | 13.226137 | |
December | 15.297123 | |
March 2002 | 14.625826 | |
June | 12.053638 | |
September | 9.364676 | |
December | 10.188983 | |
March 2003 | 9.728625 | |
June | 11.721042 | |
September | 12.329500 | |
December | 13.879698 | |
March 2004 | 14.120048 | |
June | 14.422906 | |
September | 13.795096 | |
December | 15.094382 | |
March 2005 | 14.304578 | |
June | 14.363421 | |
September | 14.795618 | |
December | 15.370699 | |
January 2006 | 15.795189 | |
February | 15.592784 | |
March | 15.914824 | |
April | 16.375420 | |
May | 15.976772 | |
June | 15.781618 | |
July | 15.366242 | |
August | 15.590613 | |
September | 15.949882 | |
October | 16.306886 | |
November | 16.771694 | |
December | 16.756791 |
Initial contributions to Separate Account B were received on February 1, 1968, prior to which time the unit value was set at 1.000000
The above indicates the accumulation unit value on the last valuation day of each year from December 1968 through December 1995, on the last valuation day of each quarter from March 1996 through December 2005, and on the last valuation day of each month beginning January 2006. The results shown should not be considered as a representation of the results which may be realized in the future.
11
Item 2. | Code of Ethics. |
(a) The Registrant has adopted a Code of Ethics that applies to its principal executive officer, principal financial officer and principal accounting officer. A copy of the Registrant’s Code of Ethics is filed herewith as Exhibit 10(a)(1).
(b) During the period covered by this report, no amendments were made to the provisions of the Code of Ethics described in 2(a) above.
(c) During the period covered by this report, no implicit or explicit waivers of the provisions of the Code of Ethics described in 2(a) above were granted.
Item 3. | Audit Committee Financial Expert. |
The Separate Account has assets of under $3 million. It has an audit committee, but does not have an audit committee financial expert. The Audit Committee of the Separate Account consists of independent directors that control 2/3 of the Board. The Committee receives quarterly reports on the transactions in the Separate Account. Because of the nature of the Separate Account’s business there are no sensitive accounting statements used in preparation of the financial statements of the Separate Account.
Item 4. | Principal Accountant Fees and Services. |
All fees relating to audit services performed for the Separate Account are paid by Unum Group.
Audit Fees – The aggregate fees Deloitte & Touche LLP billed Unum Group for the audit of the financial statements of the Separate Account for 2006 and 2005 were $30,000.00 and $30,000.00.
Audit-Related Fees –The aggregate fees for audit-related services rendered by Deloitte & Touche LLP to the Separate Account, PRIMCO, or to the investment advisor or any entity controlling, controlled by or under common control with the investment advisor in 2006 and 2005 were $0.00 and $0.00.
Tax Fees – The aggregate fees related to tax compliance, tax advice and tax planning services to the Separate Account for fiscal years ended December 31, 2006 and December 31, 2005, were $0.00 and $0.00.
All Other Fees – The aggregate fees rendered by Deloitte & Touche LLP to the Separate Account, PRIMCO, or to the investment advisor or any entity controlling, controlled by or under common control with the investment advisor for such services to the Separate Account in 2006 and 2005 were $0.00 and $0.00.
Item 5. | Audit Committee of Listed Registrants. |
The members of the Audit Committee are Henry E. Blaine and H. Grant Law, Jr. Each member of the Audit Committee is “independent” as determined under Rule 10A-3 of the Securities Exchange Act of 1934.
Item 6. | Schedule of Investments. |
Schedule of investments is included as of the close of the reporting period as part of the report to shareholders filed under Item 1 of this Form.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
REGISTRANT PURCHASES OF EQUITY SECURITIES
(a) | (b) | (c) | (d) | |||||
Period |
Total Number of Shares (or Units) Purchased |
Average Price Paid per Share (or Unit) |
Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs |
Maximum Number (or Approximate Dollar | ||||
Month #1 (identify beginning and ending dates) |
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Month #2 (identify beginning and ending dates) |
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Month #3 (identify beginning and ending dates) |
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Month #4 (identify beginning and ending dates) |
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Month #5 (identify beginning and ending dates) |
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Month #6 (identify beginning and ending dates) |
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Total |
Item 10. | Submission of Matters to a Vote of Security Holders. |
Not applicable.
Item 11. | Controls and Procedures. |
(a) Within the 90-day period prior to the filing of this report, the Registrant’s management, including the person serving as both the Registrant’s Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures as defined in Investment Company Act Rule 30a-3(c). Based on that evaluation, the Chief Executive Officer/Chief Financial Officer concluded that the Registrant’s disclosure controls and procedures were effective as of the date of this evaluation.
(b) No change in the Registrant’s internal control over financial reporting that materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting, occurred during the Registrant’s most recent second fiscal half-year.
Item 12. | Exhibits. |
The following exhibits are attached to this Form N-CSR:
(1) Code of Ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, attached hereto as Exhibit 10(a)(1).
(2) Certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 C.F.R. 270.30a-2(a)), attached hereto as Exhibit 31.
(3) Certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(b) under the Act (17 C.F.R. 270.30a-2(b)), attached hereto as Exhibit 32.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Allstate Assurance Company | ||
Separate Account B | ||
By (Signature and Title): | /s/ David G. Fussell | |
David G. Fussell, Chairman, Board of Managers Signing in the capacity of Chief Executive Officer and Chief Financial Officer |
Date: March 1, 2007.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following person on behalf of the Registrant and in the capacities and on the dates indicated.
By (Signature and Title): | /s/ David G. Fussell | |
David G. Fussell, Chairman, Board of Managers Signing in the capacity of Chief Executive Officer and Chief Financial Officer |
Date: March 1, 2007.