REVISION TO PRIOR YEAR INFORMATION

Revisions to 2017 Consolidated Financial Statements

The Company identified an error in the calculation of reserves for certain individual life products that impacted several line items within previously issued consolidated financial statements. Prior period amounts have been revised in the financial statements and related disclosures to correct this error as shown below. Management evaluated these adjustments and concluded they were not material to any previously reported quarterly or annual financial statements.

Management assessed the materiality of the misstatement described above on prior period financial statements in accordance with SEC Staff Accounting Bulletin ("SAB") No. 99, Materiality, codified in ASC 250-10, Accounting Changes and Error Corrections ("ASC 250"), and concluded that these misstatements were not material to any prior annual or interim periods. Accordingly, in accordance with ASC 250 (SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), the consolidated financial statements as of and for the three and six months ended June 30, 2017 and also for the year ended December 31, 2017, which are presented herein, have been revised. Similarly, impacted prior periods presented within the Quarterly Report on Form 10-Q for the period ended September 30, 2018 and Annual Report on Form 10-K for the year ended December 31, 2018 will be revised.

The following are selected line items from the consolidated financial statements illustrating the effects of these revisions:

Consolidated Statements of Financial Position



	December 31, 2017
	As Previously Reported		Revision			As Revised
	(in thousands)
ASSETS
Reinsurance recoverables	$	32,555,500	$	(34,236	)	$	32,521,264
TOTAL ASSETS	172,459,576		(34,236		)	172,425,340
LIABILITIES AND EQUITY
LIABILITIES
Future policy benefits	$	18,593,130	$	(31,580	)	$	18,561,550
Income taxes	32,440		3,883			36,323
Other liabilities	1,060,123		(21,151		)	1,038,972
TOTAL LIABILITIES	169,638,940		(48,848		)	169,590,092
EQUITY
Retained earnings	1,511,698		14,612			1,526,310
TOTAL EQUITY	2,820,636		14,612			2,835,248
TOTAL LIABILITIES AND EQUITY	172,459,576		(34,236		)	172,425,340

Consolidated Statements of Operations and Comprehensive Income (Loss)



	Three Months Ended June 30, 2017									Six Months Ended June 30, 2017
	As Previously Reported			Revision			As Revised			As Previously Reported			Revision			As Revised
	(in thousands)
REVENUES
Policy charges and fee income	$	(132,525	)	$	16,358		$	(116,167	)	$	(4,523	)	$	16,358		$	11,835
TOTAL REVENUES	270,721			16,358			287,079			481,680			16,358			498,038
BENEFITS AND EXPENSES
Policyholders' benefits	(204,017		)	22,919			(181,098		)	(132,530		)	19,351			(113,179		)
TOTAL BENEFITS AND EXPENSES	(67,282		)	22,919			(44,363		)	122,056			19,351			141,407
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	338,003			(6,561		)	331,442			359,624			(2,993		)	356,631
Income tax expense (benefit)	(11,161		)	1,551			(9,610		)	(29,612		)	(826		)	(30,438		)
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	349,164			(8,112		)	341,052			389,236			(2,167		)	387,069
NET INCOME (LOSS)	349,164			(8,112		)	341,052			389,236			(2,167		)	387,069
COMPREHENSIVE INCOME (LOSS)	415,620			(8,112		)	407,508			473,389			(2,167		)	471,222

Consolidated Statements of Equity

Retained Earnings

Total Equity

As Previously Reported

Revision

As Revised

As Previously Reported

Revision

As Revised

(in thousands)

Balance, December 31, 2017

1,511,698

14,612

1,526,310

2,820,636

14,612

2,835,248



	Retained Earnings							Total Equity
	As Previously Reported		Revision			As Revised		As Previously Reported		Revision			As Revised
	(in thousands)
Balance, December 31, 2016	$	1,437,266	$	11,251		$	1,448,517	$	2,496,803	$	11,251		$	2,508,054
Comprehensive income (loss):
Net income (loss)	389,236		(2,167		)	387,069		389,236		(2,167		)	387,069
Total comprehensive income (loss)								473,389		(2,167		)	471,222
Balance, June 30, 2017	1,826,502		9,084			1,835,586		2,976,067		9,084			2,985,151

Consolidated Statements of Cash Flows



	Six Months Ended June 30, 2017
	As Previously Reported			Revision			As Revised
	(in thousands)
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Net income (loss)	$	389,236		$	(2,167	)	$	387,069
Future policy benefits	1,006,435			(7,137		)	999,298
Reinsurance recoverables	(1,143,319		)	26,488			(1,116,831		)
Income taxes	14,183			(826		)	13,357
Other, net	104,107			(16,358		)	87,749
Cash flows from (used in) operating activities	19,356			0			19,356