485BPOS 1 combopostcloseleadersedge2.htm 485BPOS Post Close Leaders Edge 2-3 TL 333-101942 Combined Document


As filed with the Securities and Exchange Commission on June 28, 2018
File No. 333-101942
811-04972
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

------------
FORM N-4
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
------------
PRE-EFFECTIVE AMENDMENT NO.
 
/ /
POST-EFFECTIVE AMENDMENT NO.
27

/X/

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940

AMENDMENT NO.
678
/X/

TALCOTT RESOLUTION LIFE INSURANCE COMPANY
SEPARATE ACCOUNT SEVEN
(Exact Name of Registrant)

TALCOTT RESOLUTION LIFE INSURANCE COMPANY
(Name of Depositor)

P.O. BOX 2999
HARTFORD, CT 06104-2999

(Address of Depositor's Principal Offices)

(860) 547-4390

(Depositor's Telephone Number, Including Area Code)

LISA PROCH
TALCOTT RESOLUTION LIFE INSURANCE COMPANY
P.O. BOX 2999
HARTFORD, CT 06104-2999

(Name and Address of Agent for Service)
------------
APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING:
AS SOON AS PRACTICABLE AFTER THE EFFECTIVE DATE OF THE REGISTRATION STATEMENT.
------------

It is proposed that this filing will become effective:
/ /
immediately upon filing pursuant to paragraph (b) of Rule 485
/X/
on June 28, 2018 pursuant to paragraph (b) of Rule 485
/ /
60 days after filing pursuant to paragraph (a)(1) of Rule 485
/ /
on ________ pursuant to paragraph (a)(1) of Rule 485
/ /
this post-effective amendment designates a new effective date for a previously filed post-effective amendment

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PART A


 

LEADERS EDGE SERIES II-III
talcottresolutionlogovertica.jpg
 
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
SEPARATE ACCOUNT SEVEN (EST. 4/1/99)
TALCOTT RESOLUTION LIFE INSURANCE COMPANY
SEPARATE ACCOUNT SEVEN (EST. 12/8/86)
PO BOX 14293
LEXINGTON, KY 40512-4293
 
1-800-862-6668 (CONTRACT OWNERS)
1-800-862-7155 (INVESTMENT PROFESSIONALS)
www.talcottresolution.com
 
 
 
 
 
On May 31, 2018, pursuant to the Stock and Asset Purchase Agreement entered into on December 3, 2017, by and among Hartford Holdings, Inc. (“HHI”) and its parent company, The Hartford Financial Services Group, Inc., Hopmeadow Acquisition, Inc. ("Buyer"), Hopmeadow Holdings, LP, and Hopmeadow Holdings GP, each of which is funded by a group of investors led by Cornell Capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP, Global Atlantic Financial Group, Pine Brook and J. Safra Group, HHI sold all of the issued and outstanding equity of Hartford Life, Inc., the parent of Talcott Resolution Life Insurance Company ("Talcott Resolution") (formerly "Hartford Life Insurance Company") to Buyer ("Talcott Resolution Sale Transaction").
Additional information regarding the Talcott Resolution Sale Transaction can be found on the Talcott Resolution website at www.talcottresolution.com/financialinformation.html and in its Current Report on Form 8-K (click on "SEC Filings - Other") filed by Talcott Resolution Life Insurance Company (formerly "Hartford Life Insurance Company") on June 6, 2018, with the Securities and Exchange Commission.
Talcott Resolution will continue to administer and provide all contractual benefits of your annuity. The terms, features and benefits of your insurance contract will NOT change as a result of the sale.
* * * * * * * * * *
The variable annuity products described in this prospectus are no longer for sale. In 2013, we announced that we would no longer be selling or issuing annuity products and part of the company’s long-term strategy is to reduce the liabilities associated with the in-force annuity block of contracts. However, we continue to administer the in-force annuity contracts. This variable annuity prospectus describes a contract between each Owner and joint Owner (“you”) and Talcott Resolution Life and Annuity Insurance Company or Talcott Resolution Life Insurance Company (“us,” “we” or “our”). You should read the terms of your contract, including any riders, as your contract contains the specific terms of the benefits, limitations, restrictions, costs and obligations regarding your annuity. This is an individual, deferred, flexible-premium variable annuity. This variable annuity allows you to allocate your Premium Payment among the following portfolio companies:
ü
AIM Variable Insurance Funds
ü
American Funds Insurance Series
ü
Franklin Templeton Investments
ü
Hartford HLS Funds
ü
MFS Investment Management
Please see Appendix A for additional information. There may be contract and/or rider variations due to requirements under state law. See your contract and riders for the provisions appropriate to you.
Please read this prospectus carefully and keep it for your records and for future reference. The Statement of Additional Information contains more information about this Contract and, like this prospectus, is filed with the Securities and Exchange Commission (“SEC” or “Commission”). Although we file this prospectus and the Statement of Additional Information with the SEC, the SEC doesn’t approve or disapprove these securities or determine if the information in this prospectus is truthful or complete. Anyone who represents that the SEC does these things may be guilty of a criminal offense. This prospectus and the Statement of Additional Information can also be obtained free of charge from us by calling 1-800-862-6668 or from the SEC’s website (www.sec.gov).
This variable annuity may not be suitable for everyone. This variable annuity may not be appropriate for people who do not have a long investment time horizon and is not appropriate for people who intend to engage in market timing. You will get no additional tax advantage from this variable annuity if you are investing through a tax-advantaged retirement plan (such as a 401(k) plan or Individual Retirement Account (“IRA”)). This prospectus is not intended to provide tax, accounting or legal advice. Pursuant to IRS Circular 230, you are hereby notified of the following: The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing


2
 
 
 

of insurance products. You should seek advice based on your particular circumstances from an independent tax adviser. This product is not intended to provide tax, accounting or legal advice. Please consult with your tax accountant or attorney prior to finalizing or implementing any tax or legal strategy or for any tax, accounting or legal advice concerning your situation.
Four Simple Steps to Safeguard Your Account Against Fraud
We take protection of our customer accounts and information seriously. With the number of security breaches on the rise, it is a good time to remind you, our clients, to increase your awareness and protect yourself from fraud. We recommend four easy ways you can help protect yourself and your investments.
1. Strengthen Your Password
A strong password is your primary line of defense, which is why criminals attempt to acquire them. Passwords should be complex and difficult to guess. In order to ensure their ongoing effectiveness, passwords should be changed on a regular basis.
2. Keep Your Information Current
Make sure your contact information, including mailing address, email address and phone number is up to date with us. This will ensure that you receive your important documents.
3. Be Aware
Learn to recognize phishing emails, suspicious phone calls and texts from individuals posing as legitimate organizations, such as a bank, credit card company and government agencies. Do not click on links or download attachments from unknown sources.
4. Review Your Account Statements and Notify Law Enforcement of Suspicious Activity
As a precautionary measure, we recommend that you remain vigilant by reviewing your account statements and credit reports closely. If you detect any suspicious activity on an account, you should promptly notify the financial institution or company with which the account is maintained. You also should promptly report any fraudulent activity or suspected incidence of identity theft to proper law enforcement authorities or the Federal Trade Commission (FTC).
To file a complaint with the FTC, you may do so at www.ftc.gov/idtheft or call 1-877-ID-THEFT (877-438-4338). The FTC mailing address is 600 Pennsylvania Ave. NW, Washington, DC 20580. Complaints filed with the FTC will be added to the FTC’s Identity Theft Data Clearinghouse, which is a database made available to law enforcement agencies.
Obtain a Copy of Your Credit Report
You may obtain a free copy of your credit report from each of the three major credit reporting agencies once every 12 months by visiting www.annualcreditreport.com, calling toll-free 877-322-8228, or by completing an Annual Credit Report Request Form (found on the website) and mailing it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348.
Or you can elect to purchase a copy of your credit report by contacting one of the three national credit reporting agencies. Contact information for the three national credit reporting agencies is provided below:
Equifax
(800) 685-1111
www.equifax.com
P.O. Box 740241
Atlanta, GA 30374
Experian
(888) 397-3742
www.experian.com
P.O. Box 2002
Allen, TX 75013
Transunion
(800) 888-4213
www.transunion.com
P.O. Box 1000
Chester, PA 19016
Additional Free Resources on Identity Theft
You may wish to review the tips provided by the FTC on how to avoid identity theft. For more information, please visit www.consumer.ftc.gov/topics/privacy-identity or call 1-877-ID THEFT (877-438-4338).
We are not an investment adviser nor are we registered as such with the SEC or any state securities regulatory authority. We are not acting in any fiduciary capacity with respect to your investment. This information does not constitute personalized investment advice or financial planning advice.
NOT INSURED BY FDIC OR ANY FEDERAL GOVERNMENT AGENCY
MAY LOSE VALUE
NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE
image1a01.jpg
PROSPECTUS DATED: MAY 1, 2018 AS AMENDED ON JUNE 28, 2018
STATEMENT OF ADDITIONAL INFORMATION DATED: MAY 1, 2018 AS AMENDED ON JUNE 28, 2018




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TABLE OF CONTENTS
 
 
Page
 
 
 
 
 
 
 
 
d. Annuity Commencement Date Deferral Option
 
 
 
 
a. Principal First Preferred
 
b. Lifetime Income Foundation
 
c. Lifetime Income Builder II
 
d. Principal First
 
 
 
 
 
 
Appendix B — Lifetime Income Builder
Appendix C — Lifetime Income Builder Selects and Lifetime Income Builder Portfolios
Appendix F — Model Investment Options



4
 
 
 

1. Highlights
a. Overview
This Contract and all features are closed to new investors.
This is a deferred, flexible-premium variable annuity. A deferred variable annuity has an accumulation phase and a payout phase. You make investments during the accumulation phase. The value of your investments is used to set your benefits. At the end of the accumulation phase, we use that accumulated value to set the payments that we make during the payout phase. Generally speaking, the longer the accumulation phase, the greater your Contract Value will be for setting your benefits and annuity payouts.
This variable annuity provides:
ü
Different investment options. (Sections 3, 5(a) & Appendix A)
ü
Tax-free transfers among investment options. (Sections 5(a), Appendix Tax)
ü
Tax deferral on your investments until you withdraw your money (subject to possible IRS penalty). (Sections 5(c), Appendix Tax)
ü
Several optional living benefits that provide guaranteed withdrawals over a fixed or an indeterminate time period. (Sections 2 & 7)
ü
Annuity Payouts over a fixed or an indeterminate time period. (Section 5(d))
ü
Different Death Benefits. (Sections 2, 5(e), 6, 7(b) & 7(c))
b. Optional Features Previously Available
Optional Feature
General Purpose
MAV/MAV Plus*
Guaranteed Minimum Death Benefit that ratchets up based on performance
Principal First*
Guaranteed Minimum Withdrawal Benefit with periodic step-up rights
Principal First Preferred*
Guaranteed Minimum Withdrawal Benefit
Lifetime Income Builder Selects*
Guaranteed Minimum Lifetime Withdrawal Benefit (aka Lifetime Withdrawal Feature) with limited annual step-up rights
Lifetime Income Builder Portfolios*
Guaranteed Minimum Lifetime Withdrawal Benefit (aka Lifetime Withdrawal Feature) with full annual step-up rights
Lifetime Income Builder*
Guaranteed Minimum Lifetime Withdrawal Benefit
Lifetime Income Builder II*
Guaranteed Minimum Lifetime Withdrawal Benefit with limited annual step-up rights
Lifetime Income Foundation*
Guaranteed Minimum Lifetime Withdrawal Benefit
* No longer available for sale.
Partial Surrenders taken prior to the Lifetime Eligibility Date or in excess of the available Lifetime Benefit Payment will reduce the Guaranteed Minimum Death Benefit by an amount greater than the amount withdrawn as a result of a proportionate reduction.
Optional features are subject to restrictions that may limit or eliminate the availability of these benefits. Optional features selected are identified on your application and Contract. Not every optional feature was available from your Financial Intermediary and may be subject to additional restrictions. For more information, see Section 6, 7 and Appendices B and C.
c. Investment Options (Sections 3, 5(a) & Appendices II & A)
You may invest in:
ü
Funds with different investment strategies, objectives and risk/reward profiles.
ü
In certain circumstances, you were able to invest in a Fixed Accumulation Feature. Effective October 4, 2013, we no longer accept new allocations or Premium Payments to the Fixed Accumulation Feature.
d. Charges and Fees (Sections 2, 5(b), 5(c) & Appendices II & A)
You will pay the following types of fees:


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ü
Sales charges (varies by Contract version)
ü
Contract expenses (varies by Contract version)
ü
Optional rider fees (if selected)
ü
Fund expenses
Here are a few suggestions that might make it easier for you to use this prospectus:
ü
We use a lot of defined terms to describe how this variable annuity works. These terms are capitalized and described in the Definition section (section 8(a)). Unavoidably, we sometimes interchangeably use different terms that essentially mean the same thing (for instance, this variable annuity is also called a “Contract”).
ü
We include cross references to other sections to help describe certain aspects of this variable annuity in more detail. For example, we may describe an optional benefit in section 7 but examples of how it works are in Appendix I.
ü
Know what kind of variable annuity you purchased. We have noted what type of variable annuity (and in some instances, what series of variable annuity) this is on the cover page of this prospectus. This information will also appear in your Contract.
ü
 The format and tables provided are designed to help you compare features. We have used a consistent question and answer format in sections 6 and 7 to make it easier to compare optional benefits. Appendix A is designed to compare and contrast different variations of this variable annuity.
e. Commissions for selling this variable annuity (Section 8(f) & Appendix A)
We paid a commission for selling this variable annuity and even though this product is no longer available for new sales, commissions may continue to be paid for past sales. Commissions vary based on a variety of factors such as whether they are paid up front or over time, the type of variable annuity sold and your age.
f. Surrender Offers
In 2013 and 2014 we made an Enhanced Surrender Value offers (“Offers”) to certain Contract Owners. The Offers provided you the option to fully surrender your Contract in return for an enhanced surrender value. The Offers are no longer available. We may make additional offers in the future that may be similar to the Offers or may be different than the Offers. We will notify you in writing if additional offers are available.
g. Can I defer my Annuity Commencement Date?
If you are eligible, you may elect a one-time deferral of your Annuity Commencement Date. To elect this option we must receive at our Administrative Office the Annuity Commencement Date Deferral Option Request Form In Good Order during the Election Period. The Election Period begins when we send you the Annuity Commencement Date Deferral Option rider and ends on your Annuity Commencement Date. The Annuity Commencement Date Deferral Option rider will become effective on the Annuity Commencement Date. For more information, please see the section titled Annuity Commencement Date Deferral Option ("Deferral Option").




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2. Synopsis
The following tables describe the fees and expenses that you will pay when buying, owning and surrendering your variable annuity. The first table describes the fees and expenses that you will pay at the time that you buy or Surrender this variable annuity. State premium taxes may also be deducted.
Contract Owner Transaction Expenses
Sales Charge Imposed on Purchases (as a percentage of Premium Payments)
None

$0 - $49,999
5.5
%
$50,000 - $99,999
4.5
%
$100,000 - $249,999
3.5
%
$250,000 - $499,999
2.5
%
$500,000 - $999,999
2.0
%
$1,000,000+
1.0
%
Contingent Deferred Sales Charge* (as a percentage of Premium Payments)
 
First Year
0
%
Second Year
0
%
Third Year
0
%
Fourth Year
0
%
Fifth Year
0
%
Sixth Year
0
%
Seventh Year
0
%
Eighth Year
0
%
Ninth Year
0
%
Surrender Fee (as a percentage of amount Surrendered, if applicable)
None

Exchange Fee
None

*
Each Premium Payment has its own Contingent Deferred Sales Charge schedule.
Contract Owner Periodic Expenses
The next table describes the fees and expenses that you will pay periodically and on a daily basis (except as noted) during the time that you own this variable annuity, not including Fund fees and expenses.
 
Series II/IIR

Series III

Annual Maintenance Fee (I)
$
30

$
30

Separate Account Annual Expenses (as a percentage of average daily Account Value)
 
 
Mortality and Expense Risk Charge
0.80
%
0.65
%
Administrative Charge
0.15
%
0.20
%
Total Separate Account Annual Expenses
0.95
%
0.85
%
Maximum Optional Charges (as a percentage of average daily Account Value)
 
 
Principal First Preferred Charge (5)
0.20
%
0.20
%
Principal First Charge (2)(5)
0.75
%
0.75
%
MAV/MAV Plus Charge
0.30
%
0.30
%
Total Separate Account Annual Expenses with optional benefit separate account charges
2.00
%
1.90
%
Maximum Optional Charges (3) (as a percentage of Benefit Amount or Payment Base (4))
 
 
Lifetime Income Foundation Charge (5)
0.30
%
0.30
%
Lifetime Income Builder II Charge (2)(5)
0.75
%
0.75
%
Lifetime Income Builder Charge (2)(5)
0.75
%
0.75
%
Lifetime Income Builder Selects (2)(3)(5)
 
 
Single Life Option Charge
1.50
%
1.50
%
Joint/Spousal Life Option Charge
1.50
%
1.50
%


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Lifetime Income Builder Portfolios (2)(3)(5)
 
 
Single Life Option Charge
1.50
%
1.50
%
Joint/Spousal Life Option Charge
1.50
%
1.50
%
(1)
Fee waived if Contract Value is $50,000 or more on your Contract Anniversary or when you fully Surrender your Contract.
(2)
Current rider charges are: Lifetime Income Builder - 0.75%; Lifetime Income Builder II - 0.75%; Principal First - 0.75%: Current charges for Lifetime Income Builder Selects and Lifetime Income Builder Portfolios (Single and Joint/Spousal Options) are 1.50%. Your rider charge may be lower if you chose to decline a rider fee increase.
(3)
Charge deducted on each Contract Anniversary and when you fully Surrender your Contract.
(4)
See “Does the Benefit Amount/Payment Base change under this rider?” in Section 6 for a description of the terms “Benefit Amount” and “Payment Base.”
(5)
You may not own more than one of these optional riders at the same time.
The next item shows the minimum and maximum Total Annual Fund Operating Expenses charged by the Funds that you may pay on a daily basis during the time that you own this variable annuity. More detail concerning each Fund’s fees and expenses is contained in the prospectus for each Fund.
Leaders Outlook II/IIR/III
Minimum
Maximum
Total Annual Fund Operating Expenses
 
 
(these are expenses that are deducted from Sub-Account assets,
including management fee, Rule 12b-1 distribution
and/or service fees, and other expenses)
0.40%
1.38%




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EXAMPLE
This Example is intended to help you compare the cost of investing in this variable annuity with the cost of investing in other variable annuities.
Let’s say, hypothetically, that your annual investment return is 5% and that your fees and expenses today were as high as possible. The example illustrates the effect of fees and expenses that you could incur (other than taxes). Your actual fees and expenses may vary. For every $10,000 invested, here’s how much you would pay under each of the three scenarios posed:
Series III:
(1)
If you Surrender your Contract at the end of the applicable time period:
1 year
$
980

3 years
$
1,845

5 years
$
2,717

10 years
$
4,931

(2)
If you annuitize at the end of the applicable time period:
1 year
$
805

3 years
$
1,118

5 years
$
1,989

10 years
$
4,200

(3)
If you do not Surrender your Contract:
1 year
$
980

3 years
$
1,845

5 years
$
2,717

10 years
$
4,931


Condensed Financial Information
When Premium Payments (and any applicable Payment Enhancements) are credited to your Funds, they are converted into Accumulation Units by dividing the amount of your Premium Payments (and any applicable Payment Enhancements), minus any Premium Taxes, by the Accumulation Unit Value for that day. For more information on how Accumulation Unit Values are calculated see Section 5(a). Please refer to Appendix II for information regarding the minimum and maximum class of Accumulation Unit Values. All classes of Accumulation Unit Values may be obtained, free of charge, by contacting us.
Available Information
We provide information about our financial strength in reports filed with the SEC and state insurance departments. For example, we file annual reports (Form 10-K), quarterly reports (Form 10-Q) and periodic reports (Form 8-K) with the SEC. Forms 10-K and 10-Q include information such as our financial statements, management discussion and analysis of the previous year of operations, risk factors, and other information. Form 8-K reports are used to communicate important developments that are not otherwise disclosed in the other forms described above.
You may read or copy these reports at the SEC’s Public Reference Room at 100 F. Street N.E., Room 1580, Washington, D.C. 20549-2001. You may also obtain reports and other information about us by contacting us using the information stated on the cover page of this prospectus, visiting our website at www.talcottresolution.com or visiting at the SEC’s website at www.sec.gov. You may also obtain reports and other financial information about us by contacting your state insurance department.


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3. General Information
The Company
We are a stock life insurance company. Talcott Resolution Life Insurance Company is authorized to do business in all states of the United States and the District of Columbia. Talcott Resolution Life and Annuity Insurance Company is authorized to do business in all states of the United States except New York, the District of Columbia and Puerto Rico. Talcott Resolution Life and Annuity Insurance Company was originally incorporated under the laws of Wisconsin on January 9, 1956, and subsequently redomiciled to Connecticut. Talcott Resolution Life Insurance Company was originally incorporated under the laws of Massachusetts on June 5, 1902, and subsequently redomiciled to Connecticut. Our offices are located in Windsor, Connecticut. Not all Contracts were available from each issuing company. Neither company cross guarantees the obligations of the other. We are ultimately controlled by Henry Cornell, David I. Schamis, and Robert E. Diamond .
The General Account
The Fixed Accumulation Feature is part of our General Account. Any amounts that we are obligated to pay under the Fixed Accumulation Feature and any other payment obligation we undertake under the Contract are subject to our financial strength and claims-paying ability and our long-term ability to make such payments. We invest the assets of the General Account according to the laws governing the investments of insurance company general accounts. The General Account is not a bank account and is not insured by the FDIC or any other government agency. We receive a benefit from all amounts held in our General Account. Amounts in our General Account are available to our general creditors. We issue other types of insurance policies and financial products and pay our obligations under these products from our assets in the General Account. Effective October 4, 2013, we no longer accept new allocations or Premium Payments to the Fixed Accumulation Feature.
The Separate Account
We set aside and invest the assets of some of our annuity contracts, including this Contract, in a Separate Account. These Separate Accounts are registered as a unit investment trust under the 1940 Act. This registration does not involve supervision by the SEC of the management or the investment practices of a Separate Account or us. Separate Accounts meet the definition of “Separate Account” under federal securities law. The Separate Accounts referenced in this prospectus hold only assets for variable annuity contracts. These Separate Accounts:
•
Hold assets for your benefit and the benefit of other Contract Owners, and the persons entitled to the payouts described in the Contract.
•
Are not subject to the liabilities arising out of any other business we may conduct. The General Account is subject to the Company’s claims-paying ability. Investors must look to the strength of the insurance company with regard to insurance company guarantees. Our ability to honor all guarantees under the Contract is subject to our claims-paying capabilities and/or financial strength.
•
Are not affected by the rate of return of our General Account or by the investment performance of any of our other Separate Accounts.
•
May be subject to liabilities from a Sub-Account of a Separate Account that holds assets of other variable annuity contracts offered by a Separate Account, which are not described in this prospectus.
•
Are credited with income and gains, and takes losses, whether or not realized, from the assets they hold without regard to our other income, gains or loss.
We do not guarantee the investment results of any Separate Account. There is no assurance that the value of your Contract will equal the total of the payments you make to us.
The Funds
At the time you purchased your Contract, you allocated your Premium Payments to Sub-Accounts. These are subdivisions of our Separate Account, an account that keeps your Contract assets separate from our company assets. The Sub-Accounts then purchase shares of mutual funds set up exclusively for variable annuity or variable life insurance products. These are not the same mutual funds that you can buy through your investment professional even though they may have similar investment strategies and the same portfolio managers. Each Fund has varying degrees of investment risk. Funds are also subject to separate fees and expenses such as management fees, distribution fees and operating expenses. "Master-feeder" or "fund of funds" ("feeder funds") invest substantially all of their assets in other funds and will therefore bear a pro-rata share of fees and expenses incurred by both funds. This will reduce your investment return. Please contact us to obtain a copy of the prospectuses for each Fund (or for any feeder funds). You should read these prospectuses carefully before investing. We do not guarantee the investment results of any Fund. Certain Funds may not be available in all states and in all Contract classes. Please see Appendix A for more information.
Mixed and Shared Funding — Fund shares may be sold to our other separate accounts or other unaffiliated insurance companies to serve as an underlying investment for variable annuity contracts and variable life insurance policies, pursuant to a practice known as “mixed and shared funding.” As a result, there is a possibility that a material conflict may arise between the interests of Contract Owners, and other contract owners investing these Funds. If a material conflict arose, we will consider


10
 
 
 

what action may be appropriate, including removing the Fund from the Separate Account or replacing the Fund with another underlying fund.
Voting Rights — We are the legal owners of all Fund shares held in the Separate Account and we have the right to vote at the Funds’ shareholder meetings. To the extent required by federal securities laws or regulations, we will:
•
Notify you of any Fund shareholders’ meeting if the shares held for your Contract may be voted.
•
Send proxy materials and a form of instructions that you can use to tell us how to vote the Fund shares held for your Contract.
•
Arrange for the handling and tallying of proxies received from Contract Owners.
•
Vote all Fund shares attributable to your Contract according to timely instructions received from you, and
•
Vote all Fund shares for which no timely voting instructions are received in the same proportion as shares for which timely instructions have been received.
If any federal securities laws or regulations, or their present interpretation, change to permit us to vote Fund shares on our own, we may decide to do so. You may attend any shareholder meeting at which Fund shares held for your Contract may be voted. After we begin to make Annuity Payouts to you, the number of votes you have will decrease. There is no minimum number of shares for which we must receive timely voting instructions before we vote the shares. Therefore, as a result of proportional voting, the instruction of a small number of Owners could determine the outcome of matters subject to shareholder vote.
Substitutions, Additions, or Deletions of Funds — Subject to any applicable law, we may make certain changes to the underlying funds offered under your Contract. We may, in our sole discretion, establish new Funds. New Funds may be made available to existing Contract Owners as we deem appropriate. We may also close one or more Funds to additional Premium Payments or transfers from existing Funds. We may liquidate one or more Sub-Accounts if the board of directors of any Fund determines that such actions are prudent. Unless otherwise directed, investment instructions will be automatically updated to reflect the Fund surviving after any merger, substitution or liquidation.
We may eliminate the shares of any of the Funds from the Contract for any reason and we may substitute shares of another registered investment company for the shares of any Fund already purchased or to be purchased in the future by the Separate Account. To the extent required by the 1940 Act, substitutions of shares attributable to your interest in a Fund will not be made until we have the approval of the SEC and we have notified you of the change.
In the event of any substitution or change, we may, by appropriate endorsement, make any changes in the Contract necessary or appropriate to reflect the substitution or change. If we decide that it is in the best interest of the Contract Owners, the Separate Account may be operated as a management company under the 1940 Act or any other form permitted by law, may be de-registered under the 1940 Act in the event such registration is no longer required, or may be combined with one or more other Separate Accounts.
Fees and Payments We Receive from Funds and related parties — We receive substantial fees and payments with respect to the Funds that are offered through your Contract (sometimes referred to as “revenue sharing” payments). We consider these fees and payments, among a number of facts, when deciding to include a Fund that we offer through the Contract. All of the Funds on the overall menu make payments to Talcott Resolution. We receive these payments and fees under agreements between us and a Fund’s principal underwriter transfer agent, investment adviser and/or other entities related to the Funds in amounts up to 0.55% of assets invested in a Fund. These fees and payments may include asset-based sales compensation and service fees under distribution and/or servicing plans adopted by Funds pursuant to Rule 12b-1 under the Investment Company Act of 1940. These fees and payments may also include administrative service fees and additional payments, expense reimbursements and other compensation. Talcott Resolution expects to make a profit on the amount of the fees and payments that exceed Talcott Resolution’s own expenses, including our expenses of payment compensation to broker-dealers, financial institutions and other persons for selling the Contracts.
The availability of these types of arrangements creates an incentive for us to seek and offer Funds (and classes of shares of such Funds) that pay us revenue sharing. Other funds (or available classes of shares) may have lower fees and better overall investment performance. As of December 31, 2017, we have entered into arrangements to receive administrative service payments and/or Rule 12b-1 fees from each of the following Fund complexes (or affiliated entities):
AllianceBernstein Variable Products Series Funds & Alliance Bernstein Investments, American Century Investment Services Inc., BlackRock Advisors, LLC, BlackRock Investment, LLC, Columbia Management Distributors, Inc., Fidelity Distributors Corporation, Fidelity Investments Institutional Operations Company, Franklin Templeton Services, LLC, The Huntington Funds, Invesco Advisors Inc., Invesco Distributors Inc., Lord Abbett Series Fund & Lord Abbett Distributor, LLC, MFS Fund Distributors, Inc. & Massachusetts Financial Services Company, Morgan Stanley Distribution, Inc. & Morgan Stanley Investment Management & The Universal Institutional Funds, JPMorgan Investment Advisors, Inc., Oppenheimer Variable Account Funds & Oppenheimer Funds Distributor, Inc., Pioneer Variable Contracts Trust & Pioneer Investment Management, Inc. & Pioneer Funds Distributor, Inc., Prudential Investment Management Services, LLC, Putnam Retail Management Limited Partnership,


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The Victory Variable Insurance Funds & Victory Capital Management, Inc. & Victory Capital Advisers, Inc. and Wells Fargo Variable Trust & Wells Fargo Fund Management, LLC.
Not all Fund complexes pay the same amount of fees and compensation to us and not all Funds pay according to the same formula. Because of this, the amount of fees and payments received by Talcott Resolution varies by Fund and Talcott Resolution may receive greater or less fees and payments depending on the Funds you select. Revenue sharing payments and Rule 12b-1 fees did not exceed 0.40% and 0.35%, respectively, in 2017, and are not expected to exceed 0.40% and 0.35%, respectively, of the annual percentage of the average daily net assets (for instance, assuming that you invested in a Fund that paid us the maximum fees and you maintained a hypothetical average balance of $10,000, we would collect a total of $75 from that Fund). For the fiscal year ended December 31, 2017, revenue sharing payments and Rule 12b-1 fees did not collectively exceed approximately $53.5 million. These fees do not take into consideration indirect benefits received by offering HLS Funds as investment options.
Fixed Accumulation Feature
As of October 4, 2013, we no longer accept new allocations or Premium Payments to the Fixed Accumulation Feature except for contracts issued in Massachusetts. Any Contract Value currently invested in the Fixed Accumulation Feature may remain.
The following information applies only for Contract Value allocated to or in the Fixed Accumulation Feature as of October 4, 2013.
Important Information You Should Know: This portion of the prospectus relating to the Fixed Accumulation Feature is not registered under the 1933 Act and the Fixed Accumulation Feature is not registered as an investment company under the 1940 Act. The Fixed Accumulation Feature or any of its interests are not subject to the provisions or restrictions of the 1933 Act or the 1940 Act, and the staff of the SEC has not reviewed the disclosure regarding the Fixed Accumulation Feature. The following disclosure about the Fixed Accumulation Feature may be subject to certain generally applicable provisions of the federal securities laws regarding the accuracy and completeness of disclosures. The Fixed Accumulation Feature is not offered in all Contracts and is not available in all states.
Premium Payments (and any applicable Payment Enhancements) and Contract Values allocated to the Fixed Accumulation Feature become a part of our General Account assets. We invest the assets of the General Account according to the laws governing the investments of insurance company General Accounts. The General Account is not a bank account and is not insured by the FDIC or any other government agency. We receive a benefit from all amounts held in the General Account. Premium Payments (and any applicable Payment Enhancements) and Contract Values allocated to the Fixed Accumulation Feature are available to our general creditors.
We guarantee that we will credit interest to amounts you allocate to the Fixed Accumulation Feature at a minimum rate that meets your State’s minimum non-forfeiture requirements. We reserve the right to prospectively declare different rates of excess interest depending on when amounts are allocated or transferred to the Fixed Accumulation Feature. This means that amounts at any designated time may be credited with a different rate of excess interest than the rate previously credited to such amounts and to amounts allocated or transferred at any other designated time. We will periodically publish the Fixed Accumulation Feature interest rates currently in effect. There is no specific formula for determining interest rates and no assurances are offered as to future rates. Some of the factors that we may consider in determining whether to credit excess interest are: general economic trends, rates of return currently available for the types of investments and durations that match our liabilities and anticipated yields on our investments, regulatory and tax requirements, and competitive factors.
We will account for any deductions, Surrenders or transfers from the Fixed Accumulation Feature on a “first-in first-out” basis.
Important: Any interest credited to amounts you allocate to the Fixed Accumulation Feature in excess of the minimum guaranteed interest rate will be determined at our sole discretion. You assume the risk that interest credited to the Fixed Accumulation Feature may not exceed the minimum guaranteed interest rate for any given year. The Fixed Accumulation Feature interest rates may vary by State. While we do not charge a separate fee for investing in the Fixed Accumulation Feature, our expenses associated with offering this feature are factored into the Fixed Accumulation Feature.
From time to time, we may credit increased interest rates under certain programs established in our sole discretion.
4. Performance Related Information
The Separate Account may advertise certain performance-related information concerning the Sub-Accounts. Performance information about a Sub-Account is based on the Sub-Account’s past performance only and is no indication of future performance.
When a Sub-Account advertises its standardized total return, it will usually be calculated from the date of either the Separate Account’s inception or the Sub-Account’s inception, whichever is later, for one year, five years, and ten years or some other relevant periods if the Sub-Account has not been in existence for at least ten years. Total return is measured by comparing the value of an investment in the Sub-Account at the beginning of the relevant period to the value of the investment at the end of


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the period. Total return calculations reflect a deduction for Total Annual Fund Operating Expenses, any Contingent Deferred Sales Charge (CDSC), and Separate Account Annual Expenses without any optional charge deductions, and the Annual Maintenance Fee.
The Separate Account may also advertise non-standardized total returns that pre-date the inception of the Separate Account. These non-standardized total returns are calculated by assuming that the Sub-Accounts have been in existence for the same periods as the Funds and by taking deductions for charges equal to those currently assessed against the Sub-Accounts. Non-standardized total return calculations reflect a deduction for Total Annual Fund Operating Expenses and Separate Account Annual Expenses without any optional charge deductions, and do not include deduction for CDSC or the Annual Maintenance Fee. This means the non-standardized total return for a Sub-Account is higher than the standardized total return for a Sub-Account. These non-standardized returns must be accompanied by standardized returns.
If applicable, the Sub-Accounts may advertise yield in addition to total return. This yield is based on the 30-day SEC yield of the Fund less the recurring charges at the Separate Account level.
A money market Sub-Account may advertise yield and effective yield. The yield of a Sub-Account is based upon the income earned by the Sub-Account over a seven-day period and then annualized, i.e. the income earned in the period is assumed to be earned every seven days over a 52-week period and stated as a percentage of the investment. Effective yield is calculated similarly but when annualized, the income earned by the investment is compounded in the course of a 52-week period. Yield and effective yield include the recurring charges at the Separate Account level.
We may provide information on various topics to Contract Owners and prospective Contract Owners in advertising, sales literature or other materials. These topics may include the relationship between sectors of the economy and the economy as a whole and its effect on various securities markets, investment strategies and techniques (such as systematic investing, Dollar Cost Averaging and asset allocation), the advantages and disadvantages of investing in tax-deferred and taxable instruments, customer profiles and hypothetical purchase scenarios, financial management and tax and retirement planning, and other investment alternatives, including comparisons between the Contract and the characteristics of and market for such alternatives.
5. The Contract
a. Purchases and Contract Value
Who could buy this Contract?
This Contract is no longer available for sale. The Contract is an individual or group tax-deferred variable annuity Contract. It was designed for retirement planning purposes and was available for purchase by any individual, group or trust, including:
•
Any trustee or custodian for a retirement plan qualified under Sections 401(a) or 403(a) of the Code;
•
Annuity purchase plans adopted by public school systems and certain tax-exempt organizations according to Section 403(b) of the Code. We no longer accept any incoming 403(b) exchanges or applications for 403(b) individual annuity contracts or additional Premium Payments into any individual annuity contract funded through a 403(b) plan;
•
Individual Retirement Annuities adopted according to Section 408 of the Code;
•
Employee pension plans established for employees by a state, a political subdivision of a state, or an agency of either a state or a political subdivision of a state; and
•
Certain eligible deferred compensation plans as defined in Section 457 of the Code.
The examples above represent qualified Contracts, as defined by the Code. In addition, individuals and trusts were able to purchase Contracts that were not part of a tax qualified retirement plan. These are known as non-qualified Contracts.
If you purchased the Contract for use in an IRA or other qualified retirement plan, you should consider other features of the Contract besides tax deferral, since any investment vehicle used within an IRA or other qualified plan receives tax-deferred treatment under the Code.
Refer to Appendix A for more information about the different forms of contracts we offered.
How was this Contract Purchased?
The Contract was only available for purchase through a Financial Intermediary.
Premium Payments sent to us must be made in U.S. dollars and checks must be drawn on U.S. banks. We do not accept cash, third party checks or double endorsed checks. We reserve the right to limit the number of checks processed at one time. If your check does not clear, your purchase will be cancelled and you could be liable for any losses or fees incurred. A check must clear our account through our Administrative Office to be considered to be in good order.
We will not accept Premium Payments in the aggregate of $1 million or more unless we provide prior approval. In order to request prior approval, you must submit a completed enhanced due diligence form prior to the submission of your Premium Payment:
•
if total Premium Payments aggregated by social security number or taxpayer identification number equal $1 million or more; and
•
for all applications where the Owner or joint Owner are non-resident aliens.


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It is important that you notify us if you change your address. If your mail is returned to us, we are likely to suspend future mailings until an updated address is obtained. In addition, we may rely on a third party, including the US Postal Service, to update your current address. Failure to give us a current address may result in payments due and payable on your annuity contract being considered abandoned property under state law, and remitted to the applicable state and may result in you not receiving important notices about your Contract.
Description of the Right to Cancel provision you had when you Purchased your Contract
If for any reason you are not satisfied with your Contract, simply return it within ten days after you receive it with a written request for cancellation that indicates your tax-withholding instructions. In some states, you may be allowed more time to cancel your Contract. We may require additional information, including a signature guarantee, before we can cancel your Contract.
Unless otherwise required by state law, we will pay you your Contract Value as of the Valuation Day we receive your request to cancel and will refund any sales or Contract charges incurred during the period you owned the Contract. The Contract Value may be more or less than your Premium Payments depending upon the investment performance of your Account. This means that you bear the risk of any decline in your Contract Value until we receive your notice of cancellation. In certain states, however, we are required to return your Premium Payment without deduction for any fees or charges.
If you cancel a Plus Contract, we will recapture any Payment Enhancements we previously credited to your Contract, and you will assume the risk of any investment loss on those Payment Enhancements.
Replacement of Annuities
A "replacement" occurs when a new contract is purchased and, in connection with the sale, an existing contract is surrendered, lapsed, forfeited, assigned to the replacing insurer, otherwise terminated, or used in a financed purchase. A "financed purchase" occurs when the purchase of a new annuity contract involves the use of the funds obtained from the values of an existing annuity contract through Withdrawal, Surrender or loan.
There are circumstances in which replacing your existing annuity contract can benefit you. However, a replacement may not be in your best interest. Accordingly, you should make a careful comparison of the cost and benefits of your existing contract and the proposed contract with the assistance of your financial and tax advisers to determine whether replacement is in your best interest. You should be aware that the person selling you the new contract will generally earn a commission if you buy the new contract through a replacement. Remember that if you replace a contract with another contract, you might have to pay a surrender charge on the replaced contract, and there may be a new surrender charge period for the new contract. In addition, other charges may be higher (or lower) and the benefits may be different.
You should also note that once you have replaced your variable annuity contract, you generally cannot reinstate it even if you choose not to accept your new variable annuity contract during your "free look" period. The only exception to this rule would be if your previously issued contract was issued in a state that requires the insurer to reinstate the previously surrendered contract if the owner chooses to reject their new variable annuity contract during their "free look" period.
How are Premium Payments applied to your Contract?
If we receive your subsequent Premium Payment before the end of a Valuation Day, it will be invested on the same Valuation Day. If we receive your subsequent Premium Payment after the end of a Valuation Day, it will be invested on the next Valuation Day. If we receive your subsequent Premium Payment on a non-Valuation Day, the amount will be invested on the next Valuation Day. Unless we receive new instructions, we will invest all Premium Payments based on your last instructions on record. We will send you a confirmation when we invest your Premium Payments.
How is the value of your Contract calculated before the Annuity Commencement Date?
The Contract Value is the sum of the value of the Fixed Accumulation Feature, if applicable, and all Funds. There are two things that affect your Contract Value: (1) the number of Accumulation Units, and (2) the Accumulation Unit Value. Contract Value is determined by multiplying the number of Accumulation Units by the Accumulation Unit Value. On any Valuation Day the investment performance of the Sub-Accounts will fluctuate with the performance of the Funds.
When Premium Payments are credited to your Account, they are converted into Accumulation Units by dividing the amount of your Premium Payments, minus any Premium Taxes, by the Accumulation Unit Value for that day. The more Premium Payments you make to your Contract, the more Accumulation Units you will own. You decrease the number of Accumulation Units you have by requesting partial or full Surrenders, settling a Death Benefit claim or by annuitizing your Contract.
To determine the current Accumulation Unit Value, we take the prior Valuation Day’s Accumulation Unit Value and multiply it by the Net Investment Factor for the current Valuation Day.
The Net Investment Factor is used to measure the investment performance of a Sub-Account from one Valuation Day to the next. The Net Investment Factor for each Sub-Account equals:
•
The net asset value per share plus applicable distributions per share of each Fund at the end of the current Valuation Day; reduced
•
The net asset value per share of each Fund at the end of the prior Valuation Day; reduced by


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•
Contract charges including the deductions for the mortality and expense risk charge and any other periodic expenses, including charges for optional benefits, divided by the number of days in the year multiplied by the number of days in the Valuation period.
We will send you a statement at least annually.
What other ways can you invest?
You may enroll in the following features (sometimes called a “Program”) for no additional fee. Not all Programs are available with all Contract variations.
InvestEase
This electronic funds transfer feature allows you to have money automatically transferred from your checking or savings account and deposited into your Contract on a monthly or quarterly basis. It can be changed or discontinued at any time. The minimum amount for each transfer is $50. You can elect to have transfers made into any available Fund.
Static Asset Allocation Models
This feature allows you to select an asset allocation model of Funds based on several potential factors including your risk tolerance, time horizon, investment objectives, or your preference to invest in certain funds or fund families. Based on these factors, you can select one of several asset allocation models, with each specifying percentage allocations among various Funds available under your Contract. Asset allocation models can be based on generally accepted investment theories that take into account the historic returns of different asset classes (e.g., equities, bonds or cash) over different time periods, or can be based on certain potential investment strategies that could possibly be achieved by investing in particular funds or fund families and are not based on such investment theories. Please see Appendix F for models that are available to you.
If you choose to participate in one of these asset allocation models, you must invest all of your Premium Payment into one model. You may invest in an asset allocation model through the Dollar Cost Averaging Program where the Fixed Accumulation Feature is the source of the assets to be invested in the asset allocation model you have chosen. You can also participate in these asset allocation models while enrolled in the Automatic Income Program.
You may participate in only one asset allocation model at a time. Asset allocation models cannot be combined with other asset allocation models or with individual sub-account elections. You can switch asset allocation models up to twelve times per year. Your ability to elect or switch into and between asset allocation models may be restricted based on fund abusive trading restrictions.
You may be required to invest in an acceptable asset allocation model as a condition for electing and maintaining certain guaranteed minimum withdrawal benefits.
Your investments in an asset allocation model will be rebalanced quarterly to reflect the model’s original percentages and you may cancel your model at any time subject to investment restrictions for maintaining certain guaranteed minimum withdrawal benefits.
We have no discretionary authority or control over your investment decisions. These asset allocation models are based on then available Funds and do not include the Fixed Accumulation Feature. We make available educational information and materials (e.g., risk tolerance questionnaire, pie charts, graphs, or case studies) that can help you select an asset allocation model, but we do not recommend asset allocation models or otherwise provide advice as to what asset allocation model may be appropriate for you.
While we will not alter allocation percentages used in any asset allocation model, allocation weightings could be affected by mergers, liquidations, fund substitutions or closures. Individual availability of these models is subject to fund company restrictions. Please refer to "What Restrictions Are There on your Ability to Make a Sub-Account Transfer?" for more information.
You will not be provided with information regarding periodic updates to the Funds and allocation percentages in the asset allocation models, and we will not reallocate your Account Value based on those updates. Information on updated asset allocation models may be obtained by contacting your Investment Professional. If you wish to update your asset allocation model, you may do so by terminating your existing model and re-enrolling into a new one. Investment alternatives other than these asset allocation models are available that may enable you to invest your Contract Value with similar risk and return characteristics. When considering an asset allocation model for your individual situation, you should consider your other assets, income and investments in addition to this annuity.
•
Asset Rebalancing
In asset rebalancing, you select a portfolio of Funds, and we will rebalance your assets at the specified frequency to reflect the original allocation percentages you selected. You can choose how much of your Contract Value you want to invest in this program. You can also combine this program with others such as the Automatic Income Program and Dollar Cost Averaging Program (subject to restrictions). You may designate only one set of asset allocation instructions at a time.
•
Dollar Cost Averaging
We offer two dollar cost averaging programs:
•
Fixed Amount DCA


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•
Earnings/Interest DCA
Fixed Amount DCA - This feature allows you to regularly transfer (monthly or quarterly) a fixed amount from the Fixed Accumulation Feature (if available based on the form of Contract selected) or any Fund into a different Fund. This program begins approximately 15 days following the next monthly Contract Anniversary from the day the enrollment requested is established unless you instruct us otherwise. You must make at least three transfers in order to remain in this program.
Earnings/Interest DCA - This feature allows you to regularly transfer (monthly or quarterly) the interest earned from your investment in the Fixed Accumulation Feature (if available based on the form of Contract selected) or any Fund into another Fund. This program begins two business days plus the frequency selected unless you instruct us otherwise. You must make at least three transfers in order to remain in this program.
Automatic Income Program
This systematic withdrawal feature allows you to make partial Surrenders up to 10% of your total Premium Payments each Contract Year without a Contingent Deferred Sales Charge. You can designate the Funds to be surrendered from and also choose the frequency of partial Surrenders (monthly, quarterly, semiannual, or annually). The minimum amount of each Surrender is $100. Amounts taken under this program will count towards the Annual Withdrawal Amount, and if received prior to age 59½, may have adverse tax consequences, including a 10% federal income tax penalty on the taxable portion of the Surrender payment. You may satisfy Code Section 72(t)/(q) requirements by enrolling in this program. Your level of participation in this program may result in your exceeding permissible withdrawal limits under certain optional withdrawal riders.
Other Program considerations
•
You may terminate your enrollment in any Program at any time.
•
We may discontinue, modify or amend any of these Programs at any time. We will automatically and unilaterally amend your enrollment instructions if:
•
any Fund is merged or substituted into another Fund - then your allocations will be directed to the surviving Fund; or
•
any Fund is liquidated - then your allocations will be directed to any available money market Fund (subject to applicable law).
You may always provide us with updated instructions following any of these events.
•
Continuous or periodic investment neither insures a profit nor protects against a loss in declining markets. Because these Programs involve continuous investing regardless of fluctuating price levels, you should carefully consider your ability to continue investing through periods of fluctuating prices.
•
We make available educational information and materials (e.g., pie charts, graphs, or case studies) that can help you select a model portfolio, but we do not recommend models or otherwise provide advice as to what model portfolio may be appropriate for you. Asset allocation does not guarantee that your Contract Value will increase nor will it protect against a decline if market prices fall. If you choose to participate in an asset allocation program, you are responsible for determining which model portfolio is best for you.
Tools used to assess your risk tolerance may not be accurate and could be useless if your circumstances change over time. Although each model portfolio is intended to maximize returns given various levels of risk tolerance, a model portfolio may not perform as intended. Market, asset class or allocation option class performance may differ in the future from historical performance and from the assumptions upon which the model portfolio is based, which could cause a model portfolio to be ineffective or less effective in reducing volatility. A model portfolio may perform better or worse than any single Fund, allocation option or any other combination of Funds or allocation options. In addition, the timing of your investment and automatic rebalancing may affect performance. Quarterly rebalancing and periodic updating of model portfolios can cause their component Funds to incur transactional expenses to raise cash for money flowing out of Funds or to buy securities with money flowing into the Funds. Moreover, large outflows of money from the Funds may increase the expenses attributable to the assets remaining in the Funds. These expenses can adversely affect the performance of the relevant Funds and of the model portfolios. In addition, these inflows and outflows may cause a Fund to hold a large portion of its assets in cash, which could detract from the achievement of the Fund’s investment objective, particularly in periods of rising market prices. For additional information regarding the risks of investing in a particular fund, see that Fund’s prospectus.
•
Additional considerations apply for qualified Contracts with respect to Static Asset Allocation Model programs. Neither we, nor any third party service provider, nor any of their respective affiliates, is acting as a fiduciary under The Employee Retirement Income Security Act of 1974, as amended (ERISA) or the Code, in providing any information or other communication contemplated by any Program, including, without limitation, any model portfolios. That information and communications are not intended, and may not serve as a primary basis for your investment decisions with respect to your participation in a Program. Before choosing to participate in a Program, you must determine that you are capable of exercising control and management of the assets of the plan and of making an independent and informed decision concerning your participation in the Program. Also, you are solely responsible for determining whether and to what extent the Program is appropriate for you and the assets contained in the qualified Contract. Qualified Contracts are subject to


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additional rules regarding participation in these Programs. It is your responsibility to ensure compliance of any recommendation in connection with any model portfolio with governing plan documents.
•
These Programs may be adversely affected by Fund trading policies.
Can you transfer from one Fund to another?
During those phases of your Contract when transfers are permissible, you may make transfers between Funds according to the following policies and procedures, as they may be amended from time to time. In addition, there may be Investment Restrictions applicable to your Contract in conjunction with certain riders as described in this prospectus.
In addition, many of the Funds that are available as investment options in our variable annuity products are also available as investment options in variable life insurance policies, retirement plans, funding agreements and other products offered by us. Each day, investors and participants in these other products engage in similar transfer transactions.
We take advantage of our size and available technology to combine sales of a particular Fund for many of the variable annuities, variable life insurance policies, retirement plans, funding agreements or other products offered by us. We also combine many of the purchases of that particular Fund for many of the products we offer. We then “net” these trades by offsetting purchases against redemptions. Netting trades has no impact on the net asset value of the Fund shares that you purchase or sell. Netting trades has no impact on the net asset value of the Fund shares that you purchase or sell. This means that we sometimes reallocate shares of a Fund rather than buy new shares or sell shares of the Fund.
For example, if we combine all transfer-out (redemption) requests and Surrenders of a stock Fund Sub-Account with all other sales of that Fund from all our other products, we may have to sell $1 million dollars of that Fund on any particular day. However, if other Contract Owners and the owners of other products offered by us want to transfer-in (purchase) an amount equal to $300,000 of that same Fund, then we would send a sell order to the Fund for $700,000 (a $1 million sell order minus the purchase order of $300,000) rather than making two or more transactions.
What Restrictions Are There on your Ability to Make a Sub-Account Transfer?
First, you may make only one Sub-Account transfer request each day. We limit each Contract Owner to one Sub-Account transfer request each Valuation Day. We count all Sub-Account transfer activity that occurs on any one Valuation Day as one “Sub-Account transfer”, however, you cannot transfer the same Contract Value more than once a Valuation Day.
Examples
Transfer Request Per Valuation Day
Permissible?
Transfer $10,000 from a money market Sub-Account to a growth Sub-Account
Yes
Transfer $10,000 from a money market Sub-Account to any number of other Sub-Accounts (dividing the $10,000 among the other Sub-Accounts however you chose)
Yes
Transfer $10,000 from any number of different Sub-Accounts to any number of other Sub-Accounts
Yes
Transfer $10,000 from a money market Sub-Account to a growth Sub-Account and then, before the end of that same Valuation Day, transfer the same $10,000 from the growth Sub-Account to an international Sub-Account
No
Second, you are allowed to submit a total of 20 Sub-Account transfers each Contract Year (the “Transfer Rule”) by U.S. Mail, Voice Response Unit, Internet or telephone. Once you have reached the maximum number of Sub-Account transfers, you may only submit any additional Sub-Account transfer requests and any trade cancellation requests in writing through U.S. Mail or overnight delivery service. In other words, Voice Response Unit, Internet or telephone transfer requests will not be honored. We may, but are not obligated to, notify you when you are in jeopardy of approaching these limits. For example, we will send you a letter after your 10th Sub-Account transfer to remind you about the Transfer Rule. After your 20th transfer request, our computer system will not allow you to do another Sub-Account transfer by telephone, Voice Response Unit or via the Internet. You will then be instructed to send your Sub-Account transfer request by U.S. Mail or overnight delivery service.
We reserve the right to aggregate your Contracts (whether currently existing or those recently surrendered) for the purposes of enforcing these restrictions.
The Transfer Rule does not apply to Sub-Account transfers that occur automatically as part of a Company sponsored asset allocation or Dollar Cost Averaging program. Reallocations made based on a Fund merger, substitution, or liquidation also do not count toward this transfer limit. Restrictions may vary based on state law.
We make no assurances that the Transfer Rule is or will be effective in detecting or preventing market timing.
Third, policies have been designed to restrict excessive Sub-Account transfers. You should not purchase this Contract if you want to make frequent Sub-Account transfers for any reason. In particular, don’t purchase this Contract if you plan to engage in “market timing,” which includes frequent transfer activity into and out of the same Fund, or frequent Sub-Account transfers in order to exploit any inefficiencies in the pricing of a Fund. Even if you do not engage in market timing, certain restrictions may be imposed.


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Generally, you are subject to Fund trading policies, if any. We are obligated to provide, at the Fund’s request, tax identification numbers and other shareholder identifying information contained in our records to assist Funds in identifying any pattern or frequency of Sub-Account transfers that may violate their trading policy. In certain instances, we have agreed to serve as a Fund’s agent to help monitor compliance with that Fund’s trading policy.
We are obligated to follow each Fund’s instructions regarding enforcement of their trading policy. Penalties for violating these policies may include, among other things, temporarily or permanently limiting or banning you from making Sub-Account transfers into a Fund or other funds within that fund complex. We are not authorized to grant exceptions to a Fund’s trading policy. Please refer to each Fund’s prospectus for more information. Transactions that cannot be processed because of Fund trading policies will be considered not in good order.
In certain circumstances, Fund abusive trading policies do not apply or may be limited. For instance:
•
Certain types of financial intermediaries may not be required to provide us with shareholder information.
•
“Excepted funds” such as money market funds and any Fund that affirmatively permits short-term trading of its securities may opt not to adopt this type of policy. This type of policy may not apply to any financial intermediary that a Fund treats as a single investor.
•
A Fund can decide to exempt categories of contract holders whose contracts are subject to inconsistent trading restrictions or none at all.
•
Non-shareholder initiated purchases or redemptions may not always be monitored. These include Sub-Account transfers that are executed: (i) automatically pursuant to a company sponsored contractual or systematic program such as transfers of assets as a result of “dollar cost averaging” programs, asset allocation programs, automatic rebalancing programs, annuity payouts, loans, or systematic withdrawal programs; (ii) as a result of the payment of a Death Benefit; (iii) as a step-up in Contract Value pursuant to a Contract Death Benefit or guaranteed minimum withdrawal benefit; (iv) as a result of any deduction of charges or fees under a Contract; or (v) as a result of payments such as loan repayments, scheduled contributions, scheduled withdrawals or surrenders, retirement plan salary reduction contributions, or planned premium payments.
Possibility of Undetected abusive trading or market timing. We may not be able to detect or prevent all abusive trading or market timing activities. For instance,
•
Since we net all the purchases and redemptions for a particular Fund for this and many of our other products, transfers by any specific market timer could be inadvertently overlooked.
•
Certain forms of variable annuities and types of Funds may be attractive to market timers. We can not provide assurances that we will be capable of addressing possible abuses in a timely manner.
•
These policies apply only to individuals and entities that own this Contract or have the right to make transfers (regardless of whether requests are made by you or anyone else acting on your behalf). However, the Funds that make up the Sub-Accounts of this Contract are also available for use with many different variable life insurance policies, variable annuity products and funding agreements, and are offered directly to certain qualified retirement plans. Some of these products and plans may have less restrictive transfer rules or no transfer restrictions at all.
•
In some cases, we are unable to count the number of Sub-Account transfers requested by group annuity participants co-investing in the same Funds (“Participants”) or enforce the Transfer Rule because we do not keep Participants’ account records for a Contract. In those cases, the Participant account records and Participant Sub-Account transfer information are kept by such owners or its third party service provider. These owners and third party service providers may provide us with limited information or no information at all regarding Participant Sub-Account transfers.
How are you affected by frequent Sub-Account Transfers?
We are not responsible for losses or lost investment opportunities associated with the effectuation of these policies. Frequent Sub-Account transfers may result in the dilution of the value of the outstanding securities issued by a Fund as a result of increased transaction costs and lost investment opportunities typically associated with maintaining greater cash positions. This can adversely impact Fund performance and, as a result, the performance of your Contract. This may also lower the Death Benefit paid to your Beneficiary or lower Annuity Payouts for your Payee as well as reduce value of other optional benefits available under your Contract.
Separate Account investors could be prevented from purchasing Fund shares if we reach an impasse on the execution of a Fund’s trading instructions. In other words, a Fund complex could refuse to allow new purchases of shares by all our variable product investors if the Fund and we can not reach a mutually acceptable agreement on how to treat an investor who, in a Fund’s opinion, has violated the Fund’s trading policy.
In some cases, we do not have the tax identification number or other identifying information requested by a Fund in our records. In those cases, we rely on the Contract Owner to provide the information. If the Contract Owner does not provide the information, we may be directed by the Fund to restrict the Contract Owner from further purchases of Fund shares. In those cases, all participants under a plan funded by the Contract will also be precluded from further purchases of Fund shares.


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Fixed Accumulation Feature Transfers — If applicable, during each Contract Year, you may make transfers out of the Fixed Accumulation Feature to the Sub-Accounts, subject to the transfer restrictions discussed below. All transfer allocations must be in whole numbers (e.g., 1%). Each Contract Year you may transfer the greater of:
•
30% of the Contract Value in the Fixed Accumulation Feature as of the last Contract Anniversary or Contract issue date or the largest sum of your prior transfers. When we calculate the 30%, we add Premium Payments made after that date but before the next Contract Anniversary. These restrictions also apply to systematic transfers except for certain programs specified by us; or
•
An amount equal to your largest previous transfer from the Fixed Accumulation Feature in any one Contract Year.
We apply these restrictions to all transfers from the Fixed Accumulation Feature, including all systematic transfers and Dollar Cost Averaging Programs.
If your interest rate renews at a rate at least 1% lower than your prior interest rate, you may transfer any amount up to 100% of the amount to be invested at the renewal rate. You must make this transfer request within 60 days of being notified of the renewal rate.
We may defer transfers and Surrenders from the Fixed Accumulation Feature for up to 6 months from the date of your request.
As a result of these limitations, it may take a significant amount of time (i.e., several years) to move Contract Values in the Fixed Accumulation Feature to Sub-Accounts and therefore this may not provide an effective short term defensive strategy.
If you elect the Deferral Option, at least 80% of your Contract Value must be invested in Sub-Accounts on the original Annuity Commencement Date. That is, no more than 20% of the Contract Value may be allocated to the Fixed Accumulation Feature on the original Annuity Commencement Date. Any amount over 20% of Contract Value allocated to the Fixed Accumulation Feature on the original Annuity Commencement Date will be moved out of the Fixed Accumulation Feature via a Dollar Cost Averaging program with a duration of six months or less according to the instructions that you provide to us on the Annuity Commencement Date Deferral Option Request Form. Any existing restriction on the maximum amount transferable from the Fixed Accumulation Feature during any Contract Year will be waived on and after the original Annuity Commencement Date. The Contract Value is calculated on the Valuation Day immediately before the transfer.
Telephone and Internet Transfers — Transfer instructions received by telephone before the end of any Valuation Day will be carried out at the end of that day. Otherwise, the instructions will be carried out at the end of the next Valuation Day.
Transfer instructions you send electronically are considered to be received by us at the time and date stated on the electronic acknowledgment we return to you. If the time and date indicated on the acknowledgment is before the end of any Valuation Day, the instructions will be carried out at the end of that Valuation Day. Otherwise, the instructions will be carried out at the end of the next Valuation Day. If you do not receive an electronic acknowledgment, you should contact us as soon as possible.
We will send you a confirmation when we process your transfer. You are responsible for verifying transfer confirmations and promptly reporting any inaccuracy or discrepancy to us and your Investment Professional. Any oral communication should be reconfirmed in writing.
Telephone or Internet transfer requests may currently only be canceled by calling us before the end of the Valuation Day you made the transfer request.
We and our agents are not responsible for losses resulting from telephone or electronic requests that we believe are genuine. We will use reasonable procedures to confirm that instructions received by telephone or through our website are genuine, including a requirement that Contract Owners provide certain identification information, including a personal identification number. We record all telephone transfer instructions. We may suspend, modify, or terminate telephone or electronic transfer privileges at any time.
Power of Attorney — You may authorize another person to conduct financial and other transactions on your behalf by submitting a copy of a power of attorney (POA) executed by you that meets the requirements of your resident state law. Once we have the POA on file, we will accept transaction requests, including transfer instructions, subject to our transfer restrictions, from your designated agent (attorney-in-fact). We reserve the right to request an affidavit or certification from the agent that the POA is in effect when the agent makes such transactions. You may instruct us to discontinue honoring the POA at any time.
b. Charges and Fees
Mortality and Expense Risk Charge
We deduct a daily charge for assuming mortality and expense risks under the Contract. This charge is deducted from your Sub-Account Value.
The mortality and expense risk charge is broken into charges for mortality risks and for an expense risk:
•
Mortality Risk - There are two types of mortality risks that we assume, those made while your Premium Payments are accumulating and those made once Annuity Payouts have begun.
During the accumulation phase of your Contract, we are required to cover any difference between the Death Benefit paid and the Surrender Value. These differences may occur in periods of declining value or in periods where the CDSCs would have


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been applicable. The risk that we bear during this period is that actual mortality rates, in aggregate, may exceed expected mortality rates.
Once Annuity Payouts have begun, we may be required to make Annuity Payouts as long as the Annuitant is living, regardless of how long the Annuitant lives. The risk that we bear during this period is that the actual mortality rates, in aggregate, may be lower than the expected mortality rates.
•
Expense Risk - We also bear an expense risk that the CDSCs, if applicable, and the Annual Maintenance Fee collected before the Annuity Commencement Date may not be enough to cover the actual cost of selling, distributing and administering the Contract.
Although variable Annuity Payouts will fluctuate with the performance of the Fund selected, your Annuity Payouts will not be affected by (a) the actual mortality experience of our Annuitants, or (b) our actual expenses if they are greater than the deductions stated in the Contract. Because we cannot be certain how long our Annuitants will live, we charge this percentage fee based on the mortality tables currently in use. The mortality and expense risk charge enables us to keep our commitments and to pay you as planned. If the mortality and expense risk charge under a Contract is insufficient to cover our actual costs, we will bear the loss. If the mortality and expense risk charge exceeds these costs, we keep the excess as profit. We may use these profits, as well as revenue sharing and Rule 12b-1 fees received from certain Funds, for any proper corporate purpose including, among other things, payment of sales expenses, including the fees paid to distributors. We expect to make a profit from the mortality and expense risk charge.
Annual Maintenance Fee
The Annual Maintenance Fee is a flat fee that is deducted from your Contract Value to reimburse us for expenses relating to the administrative maintenance of the Contract and your Account. The annual charge is deducted on a Contract Anniversary or when the Contract is fully Surrendered if the Contract Value at either of those times is less than $50,000. The charge is deducted proportionately from each Sub-Account in which you are invested.
We will waive the Annual Maintenance Fee if your Contract Value is $50,000 or more on your Contract Anniversary or when you fully Surrender your Contract. In addition, we will waive one Annual Maintenance Fee for Contract Owners who own more than one Contract with a combined Contract Value between $50,000 and $100,000. If you have multiple Contracts with a combined Contract Value of $100,000 or greater, we will waive the Annual Maintenance Fee on all Contracts. However, we may limit the number of waivers to a total of six Contracts. We also may waive the Annual Maintenance Fee under certain other conditions. We do not include contracts from our Putnam line of variable annuity contracts with the Contracts when we combine Contract Value for purposes of this waiver.
Administrative Charge
We apply a daily administration charge against all Contract Values held in the Separate Account during both the accumulation and annuity phases of the Contract. There is not necessarily a relationship between the amount of administrative charge imposed on a given Contract and the amount of expenses that may be attributable to that Contract; expenses may be more or less than the charge. This charge compensates us for administrative expenses that exceed revenues from the Annual Maintenance Fee described above.
Premium Taxes
The amount of tax, if any, charged by federal, state, or other governmental entity on Premium Payments or Contract Values. On any contract subject to a Premium Tax, We may deduct the tax on a pro-rata basis from the Sub-Accounts at the time We pay the tax to the applicable taxing authorities, at the time the contract is surrendered, at the time death benefits are paid or on the Annuity Commencement Date. The Premium Tax rate varies by state or municipality. Currently the maximum rate charged by any state is 3.5% and 1.0% in Puerto Rico.
Sales Charges
We offer three contract variations that have a CDSC (these forms of contract are called “Outlook”, “Plus” and our base contract (which does not have a separate marketing name but is sometimes referred to in this prospectus as the “Core” version)), one contract version has a front end sales charge (called “Edge”) and one contract version has no sales charge (called “Access”). These types of charges (and any available reductions or waivers) are described in Section 2.
Charges Against the Funds
Annual Fund Operating Expenses - The Separate Account purchases shares of the Funds at net asset value. The net asset value of the Fund reflects investment advisory fees, distribution fees, operating expenses and administrative expenses already deducted from the assets of the Funds. These charges are described in the Funds’ prospectuses.
Charges if you Elect the Annuity Commencement Date Deferral Option
If you elect the Deferral Option, then upon the original Annuity Commencement Date, Principal First and Principal First Preferred riders as well as all other living benefits and optional death benefits are terminated and the associated rider charges will no longer be assessed.


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Other disclosure specific to Invesco V.I. Government Money Market Fund
The Invesco V.I. Government Money Market Fund will continue to use the amortized cost method of valuation to seek to maintain a stable $1.00 net asset value and does not intend to impose liquidity fees or redemption gates on Fund redemptions. The Fund's board reserves the right to impose a liquidity fee or redemption gate in the future upon prior notice to shareholders and in conformance to Rule 2a-7 of the Investment Company Act of 1940. Further detail regarding these changes is set forth in the fund's prospectus.
Reduced Fees and Charges
We may offer, in our discretion, reduced fees and charges including, but not limited to, CDSCs, the Mortality and Expense Risk Charge, the Annual Maintenance Fee, and charges for optional benefits, for certain Contracts (including employer sponsored savings plans) which may result in decreased costs and expenses. Reductions in these fees and charges will not be unfairly discriminatory against any Contract Owner.
Please see “Synopsis” for a description of charges and fees.
c. Surrenders
What kinds of Surrenders are available?
Before the Annuity Commencement Date:
Full Surrenders - When you Surrender your Contract before the Annuity Commencement Date, the Surrender Value of the Contract will be made in a lump sum payment. The Surrender Value is the Contract Value minus any applicable Premium Taxes, CDSCs, a prorated portion of optional benefit charges, if applicable and the Annual Maintenance Fee. The Surrender Value may be more or less than the amount of the Premium Payments made to a Contract.
See the prospectus supplement dated May 1, 2014 for a description of an Enhanced Surrender Value Offer (2014) available for a limited time to certain Contract Owners. The Enhanced Surrender Value Offer made to certain Contract Owners beginning in January 2013 terminated on February 28, 2014.
Partial Surrenders - You may request a partial Surrender of Contract Values at any time before the Annuity Commencement Date. We will deduct any applicable CDSC. However, on a noncumulative basis, you may make partial Surrenders during any Contract Year, up to the Annual Withdrawal Amount allowed and the Contingent Deferred Sales Charge will not be assessed against such amounts. Surrender of Contract Values in excess of the Annual Withdrawal Amount and additional surrenders made in any Contract Year will be subject to the Contingent Deferred Sales Charge. You can ask us to deduct the CDSC from the amount you are Surrendering or from your remaining Contract Value. If we deduct the CDSC from your remaining Contract Value, that amount will also be subject to CDSC. This is our default option.
Both full and partial Surrenders are taken proportionally out of the Sub-Accounts and the Fixed Accumulation Feature unless prohibited by your state. Please see section 8 (State Variations) for additional details.
There are several restrictions on partial Surrenders before the Annuity Commencement Date:
•
The partial Surrender amount must be at least equal to $100, our current minimum for partial Surrenders, and
•
After a Surrender, your Contract Value must be equal to or greater than our then current minimum Contract Value that we establish according to our current policies and procedures. We may change the minimum Contract Value in our sole discretion, with notice to you. We will close your Contract and pay the full Surrender Value if the Contract Value is under the minimum after a Surrender.
Your resulting standard Death Benefit will be reduced proportionately if you Surrender the majority of your Contract Value. See sections 6 and 7 for information regarding the impact of Surrenders to Death Benefits and optional benefits.
Under certain circumstances we had permitted certain Contract Owners to reinstate their Contracts when a Contract Owner had requested a Surrender (either full or Partial) and returned the forms in good order to us. As of October 4, 2013, we no longer allow Contract Owners to reinstate their Contracts when a Contract Owner requests a Surrender (either full or Partial).
After the Annuity Commencement Date:
Full Surrenders - You may Surrender your Contract on or after the Annuity Commencement Date only if you selected the Payment for a Period Certain Annuity Payout Option. Under this option, we pay you the Commuted Value of your Contract minus any applicable CDSCs. The Commuted Value is determined on the day we receive your written request for Surrender.
Partial Surrenders - Partial Surrenders are permitted after the Annuity Commencement Date if you select the Life Annuity With Payments for a Period Certain, Joint and Last Survivor Life Annuity With Payments for a Period Certain or the Payment for a Period Certain Annuity Payout Options. You may take partial Surrenders of amounts equal to the Commuted Value of the payments that we would have made during the “Period Certain” for the number of years you select under the Annuity Payout Option that we guarantee to make Annuity Payouts.
Both full and partial Surrenders are taken proportionally out of the Sub-Accounts and the Fixed Accumulation Feature unless prohibited by your state. Please see section 8 (State Variations) for additional details.


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To qualify for partial Surrenders under these Annuity Payout Options you must make the Surrender request during the Period Certain.
We will deduct any applicable CDSCs.
If you elect to take the entire Commuted Value of the Annuity Payouts we would have made during the Period Certain, we will not make any Annuity Payouts during the remaining Period Certain. If you elect to take only some of the Commuted Value of the Annuity Payouts we would have made during the Period Certain, we will reduce the remaining Annuity Payouts during the remaining Period Certain. Annuity Payouts that are to be made after the Period Certain is over will not change.
These options may not be available if the Contract is issued to qualify under Code Sections 401, 403, 408, or 457. For such Contracts, this option will be available only if the guaranteed payment period is less than the life expectancy of the annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by us.
Please check with your qualified tax adviser because there could be adverse tax consequences for partial Surrenders after the Annuity Commencement Date.
Does the Invesco V.I. Government Money Market Fund impose a fee or gate for redemption?
The Invesco V.I. Government Money Market Fund will continue to use the amortized cost method of valuation to seek to maintain a stable $1.00 net asset value and does not intend to impose liquidity fees or redemption gates on Fund redemptions.  The Fund’s board reserves the right to impose a liquidity fee or redemption gate in the future upon prior notice to shareholders and in conformance to Rule 2a-7 of the Investment Company Act of 1940.  Further detail is set forth in the Fund’s prospectus.
How do you request a Surrender?
See the prospectus supplement dated May 1, 2014 for a description of an Enhanced Surrender Value Offer (2014) for certain Contract Owners.
Requests for full Surrenders terminating your Contract must be in writing. Requests for partial Surrenders can be made in writing or by telephone. We will send your money within seven days of receiving complete instructions. However, we may postpone payment whenever: (a) the New York Stock Exchange is closed, (b) trading on the New York Stock Exchange is restricted by the SEC, (c) the SEC permits and orders postponement or (d) the SEC determines that an emergency exists to restrict valuation.
We may also postpone payment of Surrenders with respect to a money market Fund if the board of directors of the underlying money market Fund suspends redemptions from the Fund in connection with the Fund’s plan of liquidation, in compliance with rules of the SEC or an order of the SEC.
We may defer payment of any amounts from the Fixed Accumulation for up to six months from the date of the request to Surrender. If we defer payment for more than thirty days, we will pay interest of at least 3% per annum on the amount deferred.
Written Requests — Complete a Surrender form or send us a letter, signed by you, stating:
•
the dollar amount that you want to receive, either before or after we withhold taxes and deduct for any applicable charges,
•
your tax withholding amount or percentage, if any, and
•
your disbursement instructions, including your mailing address.
You may submit this form via mail or fax.
Unless you specify otherwise, we will provide the dollar amount you want to receive after applicable taxes and charges as the default option.
If there are joint Owners, both must authorize these transactions. For a partial Surrender, specify the Sub-Accounts that you want your Surrender to come from (this may be limited to pro-rata Surrenders if optional benefits are elected); otherwise, the Surrender will be taken in proportion to the value in each Sub-Account.
Telephone or Internet Requests — To request a partial Surrender by telephone or internet, we must have received your completed Internet Partial Withdrawal/Telephone Redemption Authorization Form. If there are joint Owners, both must sign the form. By signing the form, you authorize us to accept telephone or internet instructions for partial Surrenders from either Owner. Telephone or Internet authorization will remain in effect until we receive a written cancellation notice from you or your joint Owner, we discontinue the program, or you are no longer the Owner of the Contract. Please call us with any questions regarding restrictions on telephone or internet Surrenders.
We may record telephone calls and use other procedures to verify information and confirm that instructions are genuine. We will not be liable for losses or expenses arising from telephone instructions reasonably believed to be genuine. We may modify the requirements for telephone and/or internet redemptions at any time.
Telephone and internet Surrender instructions received before the end of a Valuation Day will be processed at the end of that Valuation Day. Otherwise, your request will be processed at the end of the next Valuation Day.
Completing a Power of Attorney for another person to act on your behalf may prevent you from making Surrenders via telephone and internet.


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What should be considered about taxes?
There are certain tax consequences associated with Surrenders. If you make a Surrender prior to age 59½, there may be adverse tax consequences including a 10% federal income tax penalty on the taxable portion of the Surrender payment. Surrendering before age 59½ may also affect the continuing tax-qualified status of some Contracts.
We do not monitor Surrender requests. Consult your personal tax adviser to determine whether a Surrender is permissible, with or without federal income tax penalty.
If you own more than one Contract issued by us in the same calendar year, then these Contracts may be treated as one Contract for the purpose of determining the taxation of distributions prior to the Annuity Commencement Date.
Internal Revenue Code section 403(b) annuities - As of December 31, 1988, all section 403(b) annuities have limits on full and partial Surrenders. Contributions to your Contract made after December 31, 1988 and any increases in cash value after December 31, 1988 may not be distributed unless you are: (a) age 59½, (b) no longer employed, (c) deceased, (d) disabled, or (e) experiencing a financial hardship (cash value increases may not be distributed for hardships prior to age 59½ ). Distributions prior to age 59½ due to financial hardship; unemployment or retirement may still be subject to a penalty tax of 10%.
We will no longer accept any incoming 403(b) exchanges or applications for 403(b) individual annuity contracts.
d. Annuity Commencement Date Deferral Option
Effective February 11, 2017, we began allowing eligible Contract Owners to defer their Annuity Commencement Date pursuant to the provisions outlined below. If you elect the Deferral Option, you may defer your Annuity Commencement Date to the Annuitant’s 100th birthday.
We will notify you prior to your Annuity Commencement Date of the options available to you at your Annuity Commencement Date. During the Election Period, which begins when we send you the Deferral Option rider and ends on your Annuity Commencement Date (“Election Period”), and which will begin at least ninety days before your Annuity Commencement Date, you may choose any of the available options.
We may withdraw the Deferral Option at any time.
If one of the options available at that time is the Deferral Option and the following conditions are met during the entirety of the Election Period, you may elect the Deferral Option:
•
You own one or more eligible contracts issued by Talcott Resolution Life Insurance Company or Talcott Resolution Life and Annuity Insurance Company
•
The Deferral Option is not available if you have elected any of the following living benefit riders: Lifetime Income Builder, Lifetime Income Builder II, Lifetime Income Foundation, Lifetime Income Builder Portfolios, Lifetime Income Builder Selects;
•
You have not elected the Deferral Option previously;
•
Your beneficiaries have not elected a death benefit settlement option;
•
You are within 90 days of your Annuity Commencement Date and you are at least 90 years old on your Annuity Commencement Date;
•
The state in which your Contract was issued has approved the Deferral Option rider;
•
We must receive your signed Annuity Commencement Date Deferral Option Request Form in Good Order at our Administrative Office to elect the Deferral Option. We must receive the Annuity Commencement Date Deferral Option Request Form on any Valuation Day up to and including the Annuity Commencement Date, provided we receive it no later than 4:00 p.m. Eastern Time or, if earlier, the close of the New York Stock Exchange on the Annuity Commencement Date. If the Annuity Commencement Date falls on a non-Valuation Day we must receive it by the prior Valuation Day;
•
You must not be beyond your Annuity Commencement Date or have annuitized your Contract;
•
You must be a customer of a Financial Intermediary in accordance with our records;
•
The Contract is not owned by a Charitable Remainder Trust (The Annuity Commencement Date of these contracts is the Annuitant's 100th birthday); and
•
During the Election Period, we have not received a request to process additional Premium Payments through a 1035 exchange, direct transfer or direct rollover.
While we have described the Deferral Option, this does not signify that your state has approved the Deferral Option rider and does not mean that the Deferral Option will be available in the future even if the rider has been approved by your state. Approval by your state is not an endorsement by that state of the Deferral Option.
As you approach your Annuity Commencement Date if you have questions about whether or not this option is available in your state, please call us at 1-800-862-6668.
If you are eligible for the Deferral Option and if you properly elect the Deferral Option, the following changes to your contract will occur on your Annuity Commencement Date:


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•
Your Annuity Commencement Date will be deferred to the Annuitant’s 100th birthday ("the Deferred Annuity Commencement Date");
•
All living benefit riders and all optional Death Benefit riders and their associated fees will terminate. No previously paid fees will be refunded. Specifically:
•
The Death Benefit described in your Contract and any optional Death Benefits will be terminated and the new Death Benefit will be the Contract Value calculated as of the date of receipt of Due Proof of Death at our Administrative Office. During the time period between our receipt of Due Proof of Death and our receipt of complete settlement instructions from each Beneficiary, the Death Benefit amount will be subject to market fluctuations;
•
All optional Death Benefit rider charges will no longer be assessed;
•
Principal First and Principal First Preferred riders including any guaranteed income benefit, death benefit settlement option and any annuitization option under these riders (i) will be terminated in their entirety; (ii) the charge for these riders will no longer be assessed; and (iii) your contract will then be subject to the contract minimum rules. If you are receiving Automatic Income Payments under Principal First or Principal First Preferred riders, you may continue to do so once the Deferral Option is effective. However, you will then be subject to the contract minimum rules. That is, if after any withdrawal, whether it be a systematic withdrawal or a one-time partial Surrender, your Contract Value falls below the contract minimum, we will close your contract and pay the full Surrender Value. The contract minimum is generally $500, but varies by state and may be charged in the future in our sole discretion, with notice to you. The minimum may be obtained by calling us at 1-800-862-6668;
•
At least 80% of your Contract Value must be invested in Sub-Accounts. That is, no more than 20% of your Contract Value may be allocated to the Fixed Accumulation Feature. Any amount over 20% of Contract Value allocated to the Fixed Accumulation Feature on the Annuity Commencement Date will be moved out of the Fixed Accumulation Feature via a Dollar Cost Averaging program with a duration of six months or less according to the instructions that you provide to us on the Annuity Commencement Date Deferral Option Request Form. Any existing restriction on the maximum amount transferable from the Fixed Accumulation Feature during any Contract Year will be waived on and after the Annuity Commencement Date. The Contract Value is calculated on the Valuation Day immediately before the transfer;
•
Similarly, if there is a Dollar Cost Averaging Program already established from the Fixed Accumulation Feature it will be terminated. You may begin a new Dollar Cost Averaging Program by contacting us after the Annuity Commencement Date;
•
The default annuitization option for Qualified Contracts is the Life Annuity with Payments for a Period Certain Annuity Payout Option with a five year period certain. The default annuitization option for non-Qualified Contracts is the Life Annuity with Payments for a Period Certain Annuity Payout Option with a ten year period certain. In general, we use Contract Value to calculate fixed dollar amount Annuity Payouts, variable dollar amount Annuity Payouts, or a combination of fixed or variable dollar amount Annuity Payouts, depending on the investment allocation of your Contract in effect on the Deferred Annuity Commencement Date;
•
If you elect the Deferral Option, premium taxes, if not previously deducted, will be deducted on your Deferred Annuity Commencement Date and not on your Annuity Commencement Date; and
•
If you choose the Deferral Option, full and partial Surrenders may be made up to the Deferred Annuity Commencement Date.
The ability to elect the Deferral Option may not be available in every State. The Deferral Option may be cancelled or withdrawn at any time by us without prior notification from us, except that we will not withdraw the option for any Contract Owner who has been offered the option at the beginning of the Election Period preceding the Annuity Commencement Date.
•
If you elect the Deferral Option and if your Spouse continues the Contract after the Annuity Commencement Date, the terms of the Deferral Option will remain in force and will supersede any conflicting terms set forth above and the Deferred Annuity Commencement Date will be adjusted to the new Annuitant’s, if any, 100th birthday.
•
If you elect the Deferral Option and if the Contingent Annuitant continues the Contract after the Annuity Commencement Date, the terms of the Deferral Option will remain in force and will supersede any conflicting terms set forth above and the Deferred Annuity Commencement Date will be adjusted to the new Annuitant’s 100th birthday.
•
Once elected, in the event the Contingent Annuitant becomes the Annuitant and in the absence of a written election to the contrary, the Deferred Annuity Commencement Date will be the fifteenth day of the month coincident with or next following the Contingent Annuitant’s 100th birthday.
Please note that if you elect the Deferral Option, then, after your Annuity Commencement Date, the Contract terms described above will be modified. All inconsistent terms set forth in this Prospectus will not apply after your Annuity Commencement Date.


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We encourage you to review the Deferral Option with your tax adviser regarding the tax consequences of electing the Deferral Option.
This Deferral Option will not be appropriate for all Contract Owners, and it may not be in your best interest to elect the Deferral Option.
Other Considerations
We cannot recommend whether or not the Deferral Option is the right choice for you. Please discuss the merits of the Deferral Option with your Financial Intermediary and tax adviser to be sure that the Deferral Option is suitable for you based on your particular circumstances;
•
It is possible that the IRS could characterize the deferral of your annuity commencement date as a deemed exchange of your contract. Therefore, if your contract was issued prior to 1989, you should discuss the possible loss of any grandfathered rights related to your current contract with your tax adviser. In addition, if you elect the Deferral Option for more than one contract in the same year and the IRS were to characterize the deferral of your annuity commencement dates as a deemed exchange of your contracts, your contracts may be aggregated for the purposes of determining the taxability of any future distributions;
•
It is possible that the selection of an Annuity Commencement Date at certain advanced ages could result in the Contract not being treated as an annuity for tax purposes; therefore, you should consult with your tax adviser;
•
Whether the advantages of deferring the Annuity Commencement Date outweigh any other option available to you at that time including liquidation or choosing an Annuity Payout Option;
•
Whether the advantages of deferring the Annuity Commencement Date outweigh the disadvantages, including the loss of all Death Benefits in excess of Contract Value, the loss of all living benefits and the constraints on investments into the Fixed Accumulation Feature;
•
Whether you have other assets to meet your future income needs;
•
Whether you will change your mind. Once you have elected the Deferral Option, you will not have the ability to reinstate the Principal First or Principal First Preferred rider or reverse any other changes made to your Contract on the Annuity Commencement Date;
•
In your evaluation of the Deferral Option, you should consult with your Financial Intermediary and tax adviser and potentially any Beneficiaries named in the Contract;
•
The Deferral Option may not be available in all states, through all Financial Intermediaries or for all contracts;
•
Financial Intermediaries do not receive additional compensation if you choose the Deferral Option, but continue to receive existing compensation throughout the deferral period;
•
If you choose an Annuity Payout Option, you cannot later elect the Deferral Option; and
If you elect the Deferral Option, you may choose any then available Annuity Payout Options at or before the Deferred Annuity Commencement Date; however, you cannot elect to defer your Deferred Annuity Commencement Date further. On your Deferred Annuity Commencement Date if you have a Qualified Contract, the default Annuity Payout Option is a Life Annuity with Payments for a Period Certain Payout Option with period certain of five years. If you have a non-Qualified Contract, the default Annuity Payout Option is the Life Annuity with Payments for a Period Certain Payout Option with a ten year period certain. In general, we use Contract Value to calculate fixed dollar amount Annuity Payouts, variable dollar amount Annuity Payouts, or a combination of fixed or variable dollar amount Annuity Payouts, depending on the investment allocation of your Contract in effect on the Deferred Annuity Commencement Date.
e.
Annuity Payouts
When you “annuitize” your Contract, you begin the process of converting Accumulation Units in what is known as the “payout phase.” The payout phase starts with your Annuity Commencement Date and ends when we make the last payment required under your Contract. You should answer the following questions:
•
When do you want Annuity Payouts to begin?
•
Which Annuity Payout Option do you want to use?
•
How often do you want the Payee to receive Annuity Payouts?
•
Do you want Annuity Payouts to be fixed dollar amount or variable dollar amount?
Please check with your investment professional to select the Annuity Payout Option that best meets your income needs.
When do your Annuity Payouts begin?
Your Annuity Commencement Date cannot be earlier than:
ü
2nd Contract Anniversary - if choosing a fixed dollar amount Annuity Payout
ü
Immediately - if choosing a variable dollar amount Annuity Payout
or be later than:


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ü
Annuitant’s 90th birthday (or if the Contract Owner is a Charitable Remainder Trust, the Annuitant’s 100th birthday); or
ü
10th Contract Year (subject to state variation)
As of October 4, 2013 we no longer allow Contract Owners to extend their Annuity Commencement Date even though we may have granted extensions in the past to you or other similarly situated investors.
Effective February 11, 2017, we began allowing eligible Contract Owners to defer their Annuity Commencement Date pursuant to the provisions outlined in the Annuity Commencement Date Deferral Option ("Deferral Option") section below. If you elect the Deferral Option, you may defer your Annuity Commencement Date the Annuitant’s 100th birthday. Once elected, in the event the Contingent Annuitant becomes the Annuitant and in the absence of a written election to the contrary, the Deferred Annuity Commencement Date will be the fifteenth day of the month coincident with or next following the Contingent Annuitant’s 100th birthday.
•
For Qualified Contracts, if you defer your Annuity Commencement Date and if, between your original Annuity Commencement Date and your Deferred Annuity Commencement Date, you do not tell us which Annuity Payout Option you want, we will pay you under the Life Annuity with Payments For a Period Certain Payout Option with period certain payments for five years. For non-Qualified Contracts, if you defer your Annuity Commencement Date and if, between your Annuity Commencement Date and your Deferred Annuity Commencement Date, you do not tell us which Annuity Payout Option you want, we will pay you under the Life Annuity with Payments For a Period Certain Payout Option with a ten year period certain.
The Annuity Calculation Date is when the amount of your Annuity Payout is determined. This occurs within five Valuation Days before your selected Annuity Commencement Date.
All Annuity Payouts, regardless of frequency, will occur on the same day of the month as the Annuity Commencement Date. After the initial payout, if an Annuity Payout date falls on a non-Valuation Day, the Annuity Payout is computed on the prior Valuation Day. If the Annuity Payout date does not occur in a given month due to a leap year or months with only 28 days (i.e. the 31st), the Annuity Payout will be computed on the last Valuation Day of the month.
Proof of Survival
The payment of any annuity benefit will be subject to evidence that the Annuitant is alive on the date such payment is otherwise due.
Which Annuity Payout Option do you want to use?
Your Contract contains the Annuity Payout Options described below. We may at times offer other Annuity Payout Options. Once we begin to make Annuity Payouts, the Annuity Payout Option cannot be changed.
Life Annuity
We make Annuity Payouts as long as the Annuitant is living. When the Annuitant dies, we stop making Annuity Payouts. A Payee would receive only one Annuity Payout if the Annuitant dies after the first payout, two Annuity Payouts if the Annuitant dies after the second payout, and so forth.
Life Annuity With Payments for a Period Certain
We will make Annuity Payouts as long as the Annuitant is living, but we at least guarantee to make Annuity Payouts for a time period you select, between 5 years and 100 years minus the Annuitant’s age. If the Annuitant dies before the guaranteed number of years have passed, then the Beneficiary may elect to continue Annuity Payouts for the remainder of the guaranteed number of years or receive the Commuted Value in one sum.
Life Annuity with a Cash Refund
We will make Annuity Payouts as long as the Annuitant is living. When the Annuitant dies, if the Annuity Payouts already made are less than the Contract Value on the Annuity Commencement Date minus any Premium Tax, the remaining value will be paid to the Beneficiary. The remaining value is equal to the Contract Value minus any Premium Tax minus all Annuity Payouts already made. This option is only available for fixed dollar amount Annuity Payouts.
Joint and Last Survivor Life Annuity
We will make Annuity Payouts as long as the Annuitant and Joint Annuitant are living. When one Annuitant dies, we continue to make Annuity Payouts until that second Annuitant dies. When choosing this option, you must decide what will happen to the Annuity Payouts after the first Annuitant dies. You must select Annuity Payouts that:
•
Remain the same at 100%, or
•
Decrease to 66.67%, or
•
Decrease to 50%.
For variable Annuity Payouts, these percentages represent Annuity Units; for fixed Annuity Payouts, they represent actual dollar amounts. The percentage will also impact the Annuity Payout amount we pay while both Annuitants are living. If you pick a lower percentage, your original Annuity Payouts will be higher while both Annuitants are alive.


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Joint and Last Survivor Life Annuity With Payments For a Period Certain
We will make Annuity Payouts as long as either the Annuitant or Joint Annuitant are living, but we at least guarantee to make Annuity Payouts for a time period you select, between 5 years and 100 years minus your younger Annuitant’s age. If the Annuitant and the Joint Annuitant both die before the guaranteed number of years have passed, then the Beneficiary may continue Annuity Payouts for the remainder of the guaranteed number of years or receive the Commuted Value in one sum.
When choosing this option, you must decide what will happen to the Annuity Payouts after the first Annuitant dies. You must select Annuity Payouts that:
•
Remain the same at 100%, or
•
Decrease to 66.67%, or
•
Decrease to 50%.
For variable dollar amount Annuity Payouts, these percentages represent Annuity Units. For fixed dollar amount Annuity Payouts, these percentages represent actual dollar amounts. The percentage will also impact the Annuity Payout amount we pay while both Annuitants are living. If you pick a lower percentage, your original Annuity Payouts will be higher while both Annuitants are alive.
Payments for a Period Certain
We agree to make payments for a specified time. The minimum period that you can select is 10 years during the first two Contract Years and 5 years after the second Contract Anniversary. The maximum period that you can select is 100 years minus your Annuitant’s age. If, at the death of the Annuitant, Annuity Payouts have been made for less than the time period selected, then the Beneficiary may elect to continue the remaining Annuity Payouts or receive the Commuted Value in one sum. You may not choose a fixed dollar amount Annuity Payout during the first two Contract Years.
You cannot Surrender your Contract once Annuity Payouts begin, unless you have selected Life Annuity with Payments for a Period Certain, Joint and Last Survivor Life Annuity with Payments For a Period Certain, or Payments For a Period Certain Annuity Payout Option. A Contingent Deferred Sales Charge, if applicable, may be deducted.
For certain qualified Contracts, if you elect an Annuity Payout Option with a Period Certain, the guaranteed number of years must be less than the life expectancy of the Annuitant at the time the Annuity Payouts begin. We compute life expectancy using the IRS mortality tables.
Automatic Annuity Payouts - If you do not elect an Annuity Payout Option, monthly Annuity Payouts will automatically begin on the Annuity Commencement Date under the Life Annuity with Payments for a Period Certain Annuity Payout Option with a ten-year period certain. Automatic Annuity Payouts will be fixed dollar amount Annuity Payouts, variable dollar amount Annuity Payouts, or a combination of fixed or variable dollar amount Annuity Payouts, depending on the investment allocation of your Account in effect on the Annuity Commencement Date. Automatic variable Annuity Payouts will be based on an Assumed Investment Return equal to 5%.
For Qualified Contracts, if you defer your Annuity Commencement Date and if, between your Annuity Commencement Date and your Deferred Annuity Commencement Date, you do not tell us what Annuity Payout Option you want, we will pay you under the Life Annuity with Payments for a Period Certain Annuity Payout Option with a five year period certain.
How often do you want the Payee to receive Annuity Payouts?
In addition to selecting an Annuity Commencement Date and an Annuity Payout Option, you must also decide how often you want the Payee to receive Annuity Payouts. You may choose to receive Annuity Payouts:
•
monthly,
•
quarterly,
•
semi-annually, or
•
annually.
Once you select a frequency, it cannot be changed. If you do not make a selection, the Payee will receive monthly Annuity Payouts. You must select a frequency that results in an Annuity Payout of at least $50. If the amount falls below $50, we have the right to change the frequency to bring the Annuity Payout up to at least $50.
Do you want Annuity Payouts to be Fixed Dollar Amount or Variable Dollar Amount?
You may choose an Annuity Payout Option with fixed dollar amounts or variable dollar amounts, depending on your income needs. You may not choose a fixed dollar amount Annuity Payout during the first two Contract Years.
Fixed Dollar Amount Annuity Payouts - Once a fixed dollar amount Annuity Payout begins, you cannot change your selection to receive variable dollar amount Annuity Payouts. You will receive equal fixed dollar amount Annuity Payouts throughout the Annuity Payout period. Fixed dollar amount Annuity Payout amounts are determined by multiplying the Contract Value, minus any applicable Premium Taxes, by an annuity rate set by us. Annuity purchase rates may vary based on the aspect of the Contract annuitized.


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Variable Dollar Amount Annuity Payouts - Once a variable dollar amount Annuity Payout begins, you cannot change your selection to receive a fixed dollar amount Annuity Payout. A variable dollar amount Annuity Payout is based on the investment performance of the Sub-Accounts. The variable dollar amount Annuity Payouts may fluctuate with the performance of the Funds. To begin making variable dollar amount Annuity Payouts, we convert the first Annuity Payout amount to a set number of Annuity Units and then price those units to determine the Annuity Payout amount. The number of Annuity Units that determines the Annuity Payout amount remains fixed unless you transfer units between Sub-Accounts.
The dollar amount of the first variable Annuity Payout depends on:
•
the Annuity Payout Option chosen,
•
the Annuitant’s attained age and gender (if applicable),
•
the applicable annuity purchase rates based on the 1983a Individual Annuity Mortality table adjusted for projections based on accepted actuarial principles, and
•
the Assumed Investment Return (“AIR”).
The total amount of the first variable dollar amount Annuity Payout is determined by dividing the Contract Value minus any applicable Premium Taxes by $1,000 and multiplying the result by the payment factor defined in the Contract for the selected Annuity Payout Option.
The dollar amount of each subsequent variable dollar amount Annuity Payout is equal to the total of Annuity Units for each Sub-Account multiplied by the Annuity Unit Value of each Sub-Account.
The Annuity Unit Value of each Sub-Account for any Valuation Period is equal to the Accumulation Unit Value Net Investment Factor for the current Valuation Period multiplied by the Annuity Unit Factor, multiplied by the Annuity Unit Value for the preceding Valuation Period. The Annuity Unit Factor offsets the AIR used to calculate your first variable dollar amount Annuity Payout.
The first Annuity Payout will be based upon the AIR. The remaining Annuity Payouts will fluctuate based on the performance of the Funds in relation to the AIR. The degree of the fluctuation will depend on the AIR you select.
You can select one of the following AIRs offered, subject to state variations:
AIR
Annuity
Unit Factor
AIR
Annuity
Unit Factor
AIR
Annuity
Unit Factor
3%
0.999919
5%
0.999866
6%
0.999840
The greater the AIR, the greater the initial Annuity Payout. But a higher AIR may result in a smaller potential growth in future Annuity Payouts when the Sub-Accounts earn more than the AIR. On the other hand, a lower AIR results in a lower initial Annuity Payout, but future Annuity Payouts have the potential to be greater when the Sub-Accounts earn more than the AIR.
For example, if the Sub-Accounts earned exactly the same as the AIR, then the second monthly Annuity Payout is the same as the first. If the Sub-Accounts earned more than the AIR, then the second monthly Annuity Payout is higher than the first. If the Sub-Accounts earned less than the AIR, then the second monthly Annuity Payout is lower than the first.
Level variable dollar amount Annuity Payouts would be produced if the investment returns remained constant and equal to the AIR. In fact, Annuity Payouts will vary up or down as the investment rate varies up or down from the AIR. The degree of variation depends on the AIR you select.
After the Annuity Calculation Date, you may transfer dollar amounts of Annuity Units from one Sub-Account to another. On the day you make a transfer, the dollar amounts are equal for both Sub-Accounts and the number of Annuity Units will be different. We will transfer the dollar amount of your Annuity Units the day we receive your written request if received before the close of the New York Stock Exchange. Otherwise, the transfer will be made on the next Valuation Day. All Sub-Account transfers must comply with applicable transfer restriction policies.
Combination Annuity Payout - You may choose to receive a combination of fixed dollar amount and variable dollar amount Annuity Payouts as long as they total 100% of your Annuity Payout. For example, you may choose to use 40% fixed dollar amount and 60% variable dollar amount to meet your income needs. Combination Annuity Payouts are not available during the first two Contract Years.
f.
Standard Death Benefits
What is the Death Benefit and how is it calculated?
The Death Benefit is the amount we will pay if the Owner, joint Owner, or the Annuitant, if applicable, dies before we begin to make Annuity Payouts. We calculate the Death Benefit when, and as of the date that, we receive a certified death certificate or other legal document acceptable to us. The Death Benefits described below are at no additional cost. Standard Death Benefits are automatically included in your Contract unless superseded by certain optional benefits. Terms and titles used in riders to your Contract may differ from those used in this prospectus.
The calculated Death Benefit will remain invested according to the Owner’s last instructions until we receive complete written settlement instructions from the Beneficiary. This means the Death Benefit amount will fluctuate with the performance of the


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Account. When there is more than one Beneficiary, we will calculate the Accumulation Units for each Sub-Account and the dollar amount for the Fixed Accumulation Feature for each Beneficiary’s portion of the proceeds.
If you elect the Deferral Option, then on and after the original Annuity Commencement Date, your Death Benefit will equal the Contract Value calculated as of the date of receipt of Due Proof of Death at our Administrative Office. During the time period between our receipt of Due Proof of Death and our receipt of complete settlement instructions from each Beneficiary, the calculated Death Benefit amount will be subject to market fluctuations. No other Death Benefit, optional Death Benefits or living benefits apply. All optional Death Benefits, living benefits and their associated charges will terminate. Please see the section titled Annuity Commencement Date Deferral Option for more information.
The Premium Security Death Benefit
This standard Death Benefit is automatically issued if you and the Annuitant are all younger than age 81 when the Contract is issued. This Death Benefit is the highest of:
•
Contract Value; or
•
Total Premium Payments adjusted for partial Surrenders; or
•
The lesser of:
•
Maximum Anniversary Value, or
•
the sum of Contract Value plus 25% of Maximum Anniversary Value (excluding Premium Payments we receive within 12 months of death).
Please refer to Premium Security Death Benefit examples 1 - 2 in Appendix I.
The Asset Protection Death Benefit
This standard Death Benefit is automatically issued if you or the Annuitant are between ages 81 to 85 when the Contract is issued. This Death Benefit is the highest of:
•
Contract Value; or
•
The lesser of:
•
Premium Payments (adjusted for partial Surrenders), or
•
the sum of Contract Value plus 25% of total Premium Payments adjusted for partial Surrenders (excluding Premium Payments we receive within 12 months of death).
If one of the Owners and Annuitant is age 81 or older on the date we issue this Contract and one of the Owners and Annuitant is age 79 or younger on the date we issue this Contract; however, the Death Benefit payable upon the death of the younger of the Owners or Annuitant will be the lesser of Maximum Anniversary Value or the sum of Contract Value plus 25% of Maximum Anniversary Value.
Please refer to Asset Protection Death Benefit examples 1 - 3 in Appendix I.
Maximum Anniversary Value
The Maximum Anniversary Value is based on a series of calculations on Contract Anniversaries of Contract Values, Premium Payments and partial Surrenders. We will calculate an Anniversary Value for each Contract Anniversary prior to the deceased’s 81st birthday or the date of death, whichever is earlier.
The Anniversary Value is equal to the Contract Value as of a Contract Anniversary with the following adjustments:
•
Your Anniversary Value is increased by the dollar amount of any Premium Payments made since the Contract Anniversary; and
•
Your Anniversary Value is reduced for any partial Surrenders since the Contract Anniversary.
The Maximum Anniversary Value is equal to the greatest Anniversary Value attained from this series of calculations.
Adjustments for Surrenders
We calculate the adjustments to your Maximum Anniversary Value for any Surrenders by reducing your Anniversary Value on a dollar-for-dollar basis for any Surrenders within a Contract Year up to 10% of aggregate Premium Payments. After that, we reduce your Anniversary Value proportionally based on the amount of any Surrenders that exceed 10% of aggregate Premium Payments divided by your aggregate Contract Value at the time of Surrender.
For examples of how this is applied for the Premium Security Death Benefit, please refer to Premium Security Death Benefit examples 1 - 2 in Appendix I and for the Asset Protection Death Benefit, please refer to Asset Protection Death Benefit examples 1 - 3 in Appendix I.
We calculate the adjustment to your aggregate Premium Payments for any Surrenders by reducing your aggregate Premium Payments on a dollar-for-dollar basis for any Surrenders within a Contract Year up to 10% of aggregate Premium Payments. After that, we reduce your aggregate Premium Payments proportionately based on the amount of any Surrenders that exceed 10% of aggregate Premium Payments divided by your aggregate Contract Value at the time of Surrender.


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Additional Information about Death Benefits
We reserve the right to treat all deferred variable annuities that you buy from us as a single contract for the purposes of determining your total Death Benefits. These limits will be applied if you make $5 million or more in total aggregate Premium Payments. If applicable, the aggregate limit on total Death Benefits payable by us will never exceed:
a.
the aggregate Premium Payments, modified by adjustments for partial Surrenders under applicable contracts and riders; or
b.
the aggregate Contract Value plus $1 million.
Any reduction in Death Benefits will be in proportion to the Contract Value of each deferred variable annuity at the time of reduction.
In addition, there may be limitations on the aggregate death benefits if you purchased one or more contracts with an initial Premium Payment of less than $5,000,000 but you add Premium Payments or purchased additional contracts such that Premium Payments under the contracts aggregate to $5,000,000 or more. See your contract for more information.
How is the Death Benefit paid?
The Death Benefit may be taken in one lump sum or under any of the Annuity Payout Options then being offered by us, unless the Owner has designated the manner in which the Beneficiary will receive the Death Benefit. When payment is taken in one lump sum, payment will be made within seven days of Our receipt of complete instructions, except when We are permitted to defer such payment under the Investment Company Act of 1940. We will calculate the Death Benefit as of the date we receive a certified death certificate or other legal documents acceptable by us. The Death Benefit amount remains invested according to the last instructions on file and is subject to market fluctuation until complete settlement instructions are received from each Beneficiary. On the date we receive complete instructions from the Beneficiary, we will compute the Death Benefit amount to be paid out or applied to a selected Annuity Payout Option. When there is more than one Beneficiary, we will calculate the Death Benefit amount for each Beneficiary’s portion of the proceeds and then pay it out or apply it to a selected Annuity Payout Option according to each Beneficiary’s instructions. If we receive the complete instructions on a non-Valuation Day, computations will take place on the next Valuation Day.
If the Death Benefit payment is $5,000 or more, the Beneficiary may elect to have their Death Benefit paid through our “Safe Haven Program.” Under this program, the proceeds remain in our General Account and the Beneficiary will receive a draft book. Proceeds are guaranteed by the claims paying ability of the Company; however, it is not a bank account and is not insured by Federal Deposit Insurance Corporation (FDIC), nor is it backed by any federal or state government agency. The Beneficiary can write one draft for total payment of the Death Benefit, or keep the money in the General Account and write drafts as needed. We will credit interest at a rate determined periodically in our sole discretion. We will credit interest at a rate determined periodically in our sole discretion. The interest rate is based upon the analysis of interest rates credited to funds left on deposit with other insurance companies under programs similar to our Safe Haven program. In determining the interest rate, we also factor in the impact of our profitability, general economic trends, competitive factors and administrative expenses. The interest rate credit is not the same rate earned on assets in the Fixed Accumulation Feature and is not subject to minimum interest rates prescribed by state non-forfeiture laws . For federal income tax purposes, the Beneficiary will be deemed to have received the lump sum payment on transfer of the Death Benefit amount to the General Account. The interest will be taxable to the Beneficiary in the tax year that it is credited. We may not offer the Safe Haven Program in all states and we reserve the right to discontinue offering it at any time. Although there are no direct charges for this program, we earn investment income from the proceeds. The investment income we earn is likely more than the amount of interest we credit; therefore, we make a profit from the difference.
The Beneficiary may elect under the Annuity Proceeds Settlement Option “Death Benefit Remaining with the Company” to leave proceeds from the Death Benefit invested with us for up to five years from the date of death if death occurred before the Annuity Commencement Date. Once we receive a certified death certificate or other legal documents acceptable to us, the Beneficiary can: (a) make Sub-Account transfers (subject to applicable restrictions) and (b) take Surrenders without paying Contingent Deferred Sales Charges, if any. We reserve the right to inform the IRS in the event that we believe that any Beneficiary has intentionally delayed delivering proper proof of death in order to circumvent applicable Code proceeds payment duties. We shall endeavor to fully discharge the last instructions from the Owner wherever possible or practical.
The Beneficiary of a non-qualified Contract or IRA (prior to the required distribution date) may also elect the Single Life Expectancy Only option. This option allows the Beneficiary to take the Death Benefit in a series of payments spread over a period equal to the Beneficiary’s remaining life expectancy. Distributions are calculated based on IRS life expectancy tables. This option is subject to different limitations and conditions depending on whether the Contract is non-qualified or an IRA.
If the Owner dies before the Annuity Commencement Date, the Death Benefit must be distributed within five years after death or be distributed under a distribution option or Annuity Payout Option that satisfies the Alternatives to the Required Distributions described below.


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If the Owner dies on or after the Annuity Commencement Date under an Annuity Payout Option that permits the Beneficiary to elect to continue Annuity Payouts or receive the Commuted Value, any remaining value must be distributed at least as rapidly as under the payment method being used as of the Owner’s death.
If the Owner is not an individual (e.g. a trust), then the original Annuitant will be treated as the Owner in the situations described above and any change in the original Annuitant will be treated as the death of the Owner.
What should the Beneficiary consider?
Alternatives to the Required Distributions - The selection of an Annuity Payout Option and the timing of the selection will have an impact on the tax treatment of the Death Benefit. To receive favorable tax treatment, the Annuity Payout Option selected: (a) cannot extend beyond the Beneficiary’s life or life expectancy, and (b) must begin within one year of the date of death.
If these conditions are not met, the Death Benefit will be treated as a lump sum payment for tax purposes. This sum will be taxable in the year in which it is considered received.
Spousal Contract Continuation - If the Owner dies and the Owner’s Spouse is a beneficiary, then the portion of the Contract payable to the Spouse may be continued with the Spouse as Owner, unless the Spouse elects to receive the Death Benefit as a lump sum payment or as an Annuity Payment Option. For certain Contracts, if the Contract continues with the Spouse as Owner, we will adjust the Contract Value to the amount that we would have paid as the Death Benefit payment, had the Spouse elected to receive the Death Benefit as a lump sum payment. Spousal Contract continuation will only apply one time for each Contract.If you elect the Deferral Option and if your Spouse continues the Contract after the original Annuity Commencement Date, the terms of the Deferral Option will remain in force and will supersede any conflicting terms set forth above and the Deferred Annuity Commencement Date will be adjusted to the new Annuitant’s, if any, 100th birthday.
Who will receive the Death Benefit?
The distribution of the Death Benefit applies only when death is before the Annuity Commencement Date.
If death occurs on or after the Annuity Commencement Date, there may be no payout at death unless the Owner has elected an Annuity Payout Option that permits the Beneficiary to elect to continue Annuity Payouts or receive the Commuted Value.
If death occurs before the Annuity Commencement Date:
If the deceased is the . . .
and . . .
and . . .
then the . . .
Contract Owner
There is a surviving joint Contract Owner
The Annuitant is living or deceased
Joint Contract Owner receives the Death Benefit.
Contract Owner
There is no surviving joint Contract Owner
The Annuitant is living or deceased
Designated Beneficiary receives the Death Benefit.
Contract Owner
There is no surviving joint Contract Owner and the Beneficiary predeceases the Contract Owner
The Annuitant is living or deceased
Contract Owner’s estate receives the Death Benefit.
Annuitant
The Contract Owner is living
There is no named Contingent Annuitant
The Contract Owner becomes the Contingent Annuitant and the Contract continues. The Contract Owner may waive this presumption and receive the Death Benefit.
Annuitant
The Contract Owner is living
The Contingent Annuitant is living
Contingent Annuitant becomes the Annuitant, and the Contract continues.

If death occurs on or after the Annuity Commencement Date:
If the deceased is the . . .
and . . .
then the . . .
Contract Owner
The Annuitant is living
Designated Beneficiary becomes the Contract Owner.
Annuitant
The Contract Owner is living
Contract Owner receives the payout at death, if any.
Annuitant
The Annuitant is also the Owner
Designated Beneficiary receives the payout at death, if any.
These are the most common scenarios. Some of the Annuity Payout Options may not result in a payout at death.



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6. Optional Death Benefits
a. MAV Plus
If you elect the Deferral Option, then on and after the original Annuity Commencement Date, your Death Benefit will equal the Contract Value calculated as of the date of receipt of Due Proof of Death at our Administrative Office. During the time period between our receipt of Due Proof of Death and our receipt of complete settlement instructions from each Beneficiary, the calculated Death Benefit amount will be subject to market fluctuations. No other Death Benefit, optional Death Benefits or living benefits apply. All optional Death Benefits, living benefits and their associated charges will terminate. Please see the section titled Annuity Commencement Date Deferral Option for more information.
Objective
Refund net Premium Payments as well as some percentage of any Contract Value gains.
How does this rider help achieve this goal?
The Death Benefit will be the greater of the standard Death Benefit and MAV Plus Death Benefit. If you also elect any optional benefit rider, the Death Benefit will be the greater of such optional rider and this rider.
The MAV Plus Death Benefit is the greatest of:
A.
Contract Value on the date we receive due proof of death.
B.
Total Premium Payments adjusted for any partial Surrenders (see clause D below for a description of this adjustment).
C.
Maximum Anniversary Value - The Maximum Anniversary Value is based on a series of calculations on Contract Anniversaries of Contract Values, Premium Payments and partial Surrenders. We will calculate an Anniversary Value for each Contract Anniversary prior to the deceased’s 81st birthday or the date of death, whichever is earlier. The Anniversary Value is equal to the Contract Value as of a Contract Anniversary with the following adjustments: (a) Anniversary Value is increased by the dollar amount of any Premium Payments made since the Contract Anniversary; and (b) Anniversary Value is adjusted for any partial Surrenders since the Contract Anniversary. The Maximum Anniversary Value is equal to the greatest Anniversary Value attained from this series of calculations.
D.
Earnings Protection Benefit - The Earnings Protection Benefit depends on the age of you and/or your Annuitant on the date this rider is added to your Contract.
•
If each is aged 69 or younger, the Death Benefit is the Contract Value on the date we receive due proof of death plus 40% of the lesser of Contract gain on that date and the cap.
•
If you and/or your Annuitant are age 70 or older on the date this rider is added to your Contract, the benefit is the Contract Value on the date we receive due proof of death plus 25% of the lesser of Contract gain on that date and the cap.
We determine Contract gain by subtracting your Contract Value on the date you added this rider from the Contract Value on the date we receive due proof of death. We then deduct any Premium Payments and add adjustments for any partial Surrender made during that time. We make an adjustment for partial Surrenders if the amount of Surrender is greater than the Contract gain immediately prior to the Surrender. The adjustment is the difference between the two, but not less than zero.
We calculate the adjustment to your Maximum Anniversary Value for any Surrenders by reducing your Maximum Anniversary Value on a dollar-for-dollar basis for any Surrenders within a Contract Year up to 10% of aggregate Premium Payments. After that, we reduce your Maximum Anniversary Value proportionately based on the amount of any Surrenders that exceed 10% of aggregate Premium Payments divided by your aggregate Contract Value at the time of Surrender. Please refer to the examples in Appendix I for illustrations of this adjustment.
The Contract gain that is used to determine your Death Benefit has a limit or cap. The cap is 200% of the following:
•the Contract Value on the date this rider was added to your Contract; plus
•
Premium Payments made after this rider was added to your Contract, excluding any Premium Payments made within 12 months of the date we receive due proof of death; minus
•any adjustments for partial Surrenders.
If you elect MAV Plus, the Death Benefit will be the greater of the Premium Security Death Benefit and the MAV Plus Death Benefit.
When can you buy this rider?
The MAV Plus rider is closed to new investors (including to existing Owners).
This rider was only available at the time of issue and if you elected it, your choice was irrevocable.
Does electing this rider forfeit your ability to buy other riders?
No.



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How is the charge for this rider calculated?
The annual charge for this rider is based on your daily Contract Value and is deducted daily. The charge for this rider continues to be deducted until we begin to make Annuity Payouts.
Does the Benefit Amount/Payment Base change under this rider?
No. This rider is not affected by the Benefit Amount or Payment Base.
Is this rider designed to pay you withdrawal benefits for your lifetime?
No.
Is this rider designed to pay you Death Benefits?
Yes.
Does this rider replace standard Death Benefits?
No.
Can you revoke this rider?
No.
What effect do partial or full Surrenders have on your benefits under this rider?
Surrenders will reduce the MAV Plus Death Benefit and will be subject to CDSCs, if any.
What happens if you change ownership?
Except as prohibited by state law, we reserve the right to approve all ownership changes, including any assignment of your Contract to others or the pledging of your Contract as collateral. Certain approved changes in ownership may cause a re-calculation of the benefits subject to applicable state law. Generally, we will not recalculate the benefits under your Contract so long as the change in ownership does not affect the Owner and does not result in a change in the tax identification number under the Contract. Changes in ownership can also adversely affect your Death Benefits and optional withdrawal benefits.
You may not change the named Annuitant. However, if the Annuitant is still living, the Contingent Annuitant may be changed at any time prior to the Annuity Commencement Date by sending us written notice.
Ownership changes may be taxable to you. We recommend that you consult with a tax adviser before making any ownership changes.
Can your Spouse continue your contract rights?
Yes. If your Spouse continues the Contract as Owner, we will use the date the Contract is continued with your Spouse as Owner as the effective date this rider was added to the Contract. This means we will use the date the Contract is continued with your Spouse as Owner as the effective date for calculating this Death Benefit going forward. The percentage used for this Death Benefit will be determined by the oldest age of any remaining joint Owner or Annuitant at the time the Contract is continued. Spousal Contract continuation can apply once during the term of this Contract.
What happens if you annuitize your Contract?
This rider will be terminated and the fee will no longer be assessed.
Are there restrictions on how you must invest?
No.
Are there restrictions on the amount of subsequent Premium Payments?
No.
Can we aggregate contracts?
Yes. We reserve the right to treat all deferred variable annuities that you buy from us as a single contract for the purposes of determining your total Death Benefits. These limits will be applied if you make $5 million or more in total aggregate Premium Payments. If applicable, the aggregate limit on total Death Benefits payable by us will never exceed:
a.
the aggregate Premium Payments, modified by adjustments for partial Surrenders under applicable contracts and riders; or
b.
the aggregate Contract Value plus $1 million.
Any reduction in Death Benefits will be in proportion to the Contract Value of each deferred variable annuity at the time of reduction.
Other information
This rider may not be appropriate for all investors. Several factors, among others, should be considered:
•
This rider is not available in all states or is named differently in those states.
•
If your Contract has no gain, your Beneficiary will receive no additional benefit.
•
A Death Benefit is paid to Beneficiaries upon the death of the Annuitant or any Owner, whichever occurs first.


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•
This rider may be used to supplement Death Benefits in other optional riders. In certain instances, however, this additional Death Benefit coverage could be superfluous.
•
Annuitizing your Contract will extinguish this rider.
7. Optional Withdrawal Benefits
a.
Principal First Preferred
If you elect the Deferral Option, Principal First Preferred rider, including any guaranteed income benefit, death benefit settlement option and any annuitization option under this rider (i) will be terminated in their entirety; (ii) the charge for this rider will no longer be assessed; and (iii) your contract will then be subject to the contract minimum rules. If, however, you are receiving Automatic Income Payments under Principal First Preferred rider, you may continue to do so once the Deferral Option is effective. However, you will then be subject to the contract minimum rules. That is, if after any withdrawal, whether it be a systematic withdrawal or a one-time partial Surrender, your Contract Value falls below the contract minimum, we will close your contract and pay the full Surrender Value. For more details, see the Annuity Commencement Date Deferral Option ("Deferral Option") section, which is immediately prior to the subsection titled Annuity Payouts in The Contract section.
Objective
Protect your Premium Payments from poor market performance through annual Benefit Payments until the Benefit Amount is reduced to zero.
How does this rider help achieve this goal?
This rider protects Premium Payments by guaranteeing annual Benefit Payments until your Benefit Amount, rather than your Contract Value, has been exhausted.
When can you buy this rider?
The rider is closed to new investors (including to existing Owners).
Does electing this rider forfeit your ability to buy other riders?
Yes. If you elected this rider, you may not elect any optional riders other than MAV Plus (MAV only in applicable states).
How is the charge for this rider calculated?
The annual charge for this rider is based on your daily Sub-Account Value and is deducted daily. We will continue to deduct the charge until we begin to make Annuity Payouts or the rider is revoked.
Does the Benefit Amount/Payment Base change under this rider?
Yes. Your Benefit Amount will fluctuate based on subsequent Premium Payments or partial Surrenders. If you elect the rider at a later date, your Contract Value on the date it is added to your Contract will be the initial Benefit Amount. Partial Surrenders in excess of your annual Benefit Payments may also trigger a recalculation of the Benefit Amount and future Benefit Payments. Your Benefit Amount can never be more than $5 million.
Is this rider designed to pay you withdrawal benefits for your lifetime?
No. You can continue to take Benefit Payments until the Benefit Amount has been depleted. Once the initial Benefit Amount has been determined, we calculate Benefit Payments. If you elect the rider when purchasing the Contract, your initial Premium Payment is equal to the initial Benefit Amount. The maximum Benefit Payment is 5% of your Benefit Amount. Benefit Payments are available at any time and can be taken on any schedule that you request. Benefit Payments are non-cumulative, which means that your Benefit Payment will not increase in the future if you fail to take your full Benefit Payment for the current Contract Year. For example, if you do not take 5% one Contract Year, you may not take more than 5% the next Contract Year.
If you elected this rider when you purchased your Contract, we count one year as the time between each Contract Anniversary. If you purchased this rider after you purchased your Contract, we count the first year as the time between the date you added this rider to your Contract and your next Contract Anniversary, which could be less than a year.
Each time you add a Premium Payment, we increase your Benefit Amount by the amount of the subsequent Premium Payment on a dollar-for-dollar basis. When you make a subsequent Premium Payment, your Benefit Payments will increase by 5% of the amount of the subsequent Premium Payment.
Your Benefit Amount cannot be less than $0 or more than $5 million. Any activities that would otherwise increase the Benefit Amount above this ceiling will not be included for any benefits under this rider.
If, in one year, your Surrenders total more than your annual Benefit Payment, we will recalculate your Benefit Amount and your Benefit Payment could be significantly lower in the future. Any time we recalculate your Benefit Amount and your Benefit Payment we count one year as the time between the date we recalculate and your next Contract Anniversary, which could be less than a year.


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Whenever a partial Surrender is made, the Benefit Amount will be equal to the amount determined in either (A) or (B) as follows:
A.
If the total partial Surrenders since the later of (i) the most recent Contract Anniversary, or (ii) the Valuation Day that the Benefit Payment was last established (excluding subsequent Premium Payments), are equal to or less than the Benefit Payment, the new Benefit Amount becomes the Benefit Amount immediately prior to the partial Surrender, less the amount of the partial Surrender.
B.
If the total partial Surrenders as determined in (A) above exceed the Benefit Payment, the Benefit Amount will have an automatic reset to the greater of zero or the lesser of (i) or (ii) as follows:
(i)
The Contract Value immediately following the partial Surrender; or
(ii)
The Benefit Amount immediately prior to the partial Surrender, less the amount of the partial Surrender.
Please refer to examples 2 - 6 for Principal First Preferred in Appendix I for illustrations regarding recalculation of your Benefit Amount.
Qualified Contracts are subject to certain federal tax rules requiring that minimum distributions be withdrawn from the Contract on a calendar year basis (i.e., compared to a Contract Year basis), usually beginning after age 70½. These withdrawals are called Required Minimum Distributions (“RMD”). An RMD may exceed your Benefit Payment, which will cause a recalculation of your Benefit Amount. Recalculation of your Benefit Amount may result in a lower Benefit Payment in the future. If you enroll in our Automatic Income Program to satisfy the Required Minimum Distributions from the Contract and, as a result, the withdrawals exceed your Benefit Payment we will not recalculate your Benefit Amount ot Benefit Payment.
Is this rider designed to pay you a Death Benefit?
No. However, partial Surrenders will reduce the standard Death Benefit.
Does this rider replace standard Death Benefits?
No.
Can you revoke this rider?
Yes. You may revoke this rider in writing anytime following the earlier of the 5th Contract Year (if elected at issuance) or the 5th anniversary of electing this rider post-issuance or at the time we exercise our right to impose investment restrictions. You may terminate this rider by submitting Principal First Preferred Termination Form to our Administrative Office or by calling us. Termination requests will not be accepted more than 30 days prior to your fifth rider anniversary. Annuitizing your Contract instead of receiving Benefit Payments will terminate this rider. If you revoke this rider you will not be able to elect any other optional benefit rider or participate in a Company-sponsored exchange program. However, a Company-sponsored exchange of this rider will not be considered to be a revocation or termination of this rider.
What effect do partial or full Surrenders have on your benefits under this rider?
Benefit Payments are treated as partial Surrenders and are deducted from your Contract Value and Benefit Amount. Each Benefit Payment reduces the amount you may Surrender under your Annual Withdrawal Amount. Surrenders in excess of your annual Benefit Payment include any applicable CDSC.
If, in one year, your Surrenders total more than your annual Benefit Payment, we will re-calculate your Benefit Amount and your Benefit Payment could be significantly lower in the future. Any time we recalculate your Benefit Amount and your Benefit Payment we count one year as the time between the date we recalculate and your next Contract Anniversary, which could be less than a year.
If your Contract Value is reduced to zero due to receiving annual Benefit Payments, and you still have a Benefit Amount, you will continue to receive a Benefit Payment through a fixed Annuity Payout option until your Benefit Amount is depleted. While you are receiving payments under fixed Annuity Payout options, you may not make additional Premium Payments, and if you die before you receive all of your payments, your Beneficiary will continue to receive the remaining Benefit Payments.
You can Surrender your entire Contract Value any time; however, you will receive your Contract Value at the time you request a full Surrender with any applicable charges deducted and not the Benefit Amount or the Benefit Payment amount that you would have received under this rider.
What happens if you change ownership?
If you change the ownership or assign this Contract to someone other than your Spouse after 12 months of electing this rider, we will recalculate the Benefit Amount and the Benefit Payment may be lower in the future. The Benefit Amount will be recalculated to equal the lesser of:
•
The Benefit Amount immediately prior to the ownership change or assignment; or
•
The Contract Value at the time of the ownership change or assignment.
The Benefit Payment will then be reset to 5% of the new Benefit Amount.
If the Owner dies and the sole Beneficiary is the Owner’s Spouse, then the surviving Spouse can either become the Contract Owner or elect to receive the standard Death Benefit.


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You may not change the named Annuitant. However, if the Annuitant is still living, the Contingent Annuitant may be changed at any time prior to the Annuity Commencement Date by sending us written notice.
Ownership changes may be taxable to you. We recommend that you consult with a tax adviser before making any ownership changes.
Can your Spouse continue your Withdrawal Benefit?
Yes. If the Owner dies and the sole Beneficiary is the deceased Owner’s Spouse at the time of death, that Spouse may continue the Contract and this rider. This right may be exercised only once during the term of the Contract.
What happens if you annuitize your Contract?
You may elect the annuitization option at any time. If you annuitize your Contract, you may choose this payout option in addition to those Annuity Payout Options offered in the Contract. Under this Annuity Payout Option (called the “PFP Annuity Payout Option”), we will pay a fixed dollar amount for a specific number of years (“Payout Period”). If you, the joint Owner or the Annuitant should die before the Principal First Preferred Annuity Payout Period is complete, the remaining payments will be made to the Beneficiary. The Principal First Preferred Annuity Payout Period is determined on the Annuity Calculation Date and it will equal the current Benefit Amount divided by the Benefit Payment. The total amount of the Annuity Payouts under this option will be equal to the Benefit Amount. We may offer other Payout Options. If you, the joint Owner or Annuitant die before the Annuity Calculation Date and all of the Benefit Payments guaranteed by us have not been made, the Beneficiary may elect to take the remaining Benefit Payments by electing the PFP Payout Option. Electing this option forfeits any right to Death Benefit values calculated under the standard Death Benefit or any optional death benefits you may have purchased. If the Annuitant dies after the Annuity Calculation Date and before all of the Benefit Payments guaranteed by us have been made, the payments will continue to be made to the Beneficiary. If your Contract Value is reduced to zero, you will receive a fixed Annuity Payout option until your Benefit Amount is depleted.
This option may not be available if the contract is issued to qualify under Section 401, 403, 408 or 457 of the Internal Revenue Code of 1986, as amended. For such contracts, this option will be available only if the guaranteed payment period is less than the life expectancy of the Annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by Us.
Are there restrictions on how you must invest?
Yes. We reserve the right to limit the Sub-Accounts into which you may allocate your Contract Value on and after the effective date.
Are there restrictions on the amount of subsequent Premium Payments?
No; however, your Benefit Amount cannot be more than $5 million. Any activities that would otherwise increase the Benefit Amount above this ceiling will not be included for any benefits under this rider.
Can we aggregate contracts?
Yes. We reserve the right to treat all Contracts issued to you by us as one Contract for purposes of this rider. This means that if you purchase two Contracts from us in any twelve month period and elect optional withdrawal benefits in such other Contracts, withdrawals from one Contract may be treated as withdrawals from the other Contract.
Other information
This rider may not be appropriate for all investors. Several factors, among others, should be considered:
•
We can revoke this rider if you violate the investment restrictions requirements.
•
The annual percentage used for determining Benefit Payments is not a fixed rate of return. The Contract Value used in the calculation of the Benefit Amount and Benefit Payment is based on the investment performance of your Sub-Accounts.
•
Benefit Payments can’t be carried forward from one year to the next.
•
Additional contributions made to your Contract after withdrawals have begun may not restore the previous amount of Benefit Payments, even if the additional contribution restores the Benefit Amount to the previous Benefit Amount.
•
If elected post-issue, the first one year period will be considered to be the time period between election and the next following Contract Anniversary.
•
When the Contract Value is small in relation to the Benefit Amount, Surrenders may have a significant effect on future Benefit Payments.
•
We do not automatically increase payments under the Automatic Income Program if your Lifetime Benefit Payment increases. If you are enrolled in our Automatic Income Program to make Lifetime Benefit Payments and your eligible Lifetime Benefit Payment increases, please note that you need to request an increase in your Automatic Income Program. We will not individually notify you of this privilege.


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b.
Lifetime Income Foundation
The Annuity Commencement Date Deferral Option is not available if you have elected this rider.
Objective
Protect principal from poor market performance, provide longevity protection through Lifetime Benefit Payments, and ensure a Death Benefit equivalent to the greater of Premium Payments reduced for partial Surrenders or Contract Value.
How does this rider help achieve this goal?
This rider provides two separate but bundled benefits that help achieve this goal. In other words, this rider is a guarantee that you can access two ways:
•
Lifetime Withdrawal Benefit. This rider provides a series of Lifetime Benefit Payments payable in each Contract Year following the Relevant Covered Life’s 60th birthday, until the first death of any Covered Life (“Single Life Option”) or the second death of any Covered Life (“Joint/Spousal Option”). Lifetime Benefit Payments are maximum amounts that can be withdrawn each year based on the higher of your Payment Base or Contract Value on each Contract Anniversary multiplied by the applicable Withdrawal Percent. In an Eligible Withdrawal Year, your initial Lifetime Benefit Payment is equal to the Payment Base multiplied by the applicable Withdrawal Percentage. Payments may continue even if the Contract Value has been reduced to below our minimum Contract Value. The Withdrawal Percent varies based upon the attained age of the Relevant Covered Life as of the Contract Anniversary prior to the first partial Surrender, and the survivor option chosen. Any partial Surrender taken prior to the Contract Anniversary following the Relevant Covered Life’s 60th birthday will reduce the Payment Base and your future Lifetime Benefit Payment. Such partial Surrender may potentially eliminate your Lifetime Benefit Withdrawal Guarantee.
•
Guaranteed Minimum Death Benefit. This guaranteed minimum Death Benefit provides a Death Benefit equal to the greater of Premium Payments reduced for partial Surrenders or Contract Value as of the date due proof of death is received for any Contract Owner or Annuitant. Partial Surrenders will reduce or eliminate the Guaranteed Minimum Death Benefit. This Guaranteed Minimum Death Benefit replaces the standard Death Benefits provided under this Contract.
When can you buy this rider?
This rider is closed to new investors (including to existing Owners).
A Covered Life must be a living person. If you choose the Joint/Spousal Option, we reserve the right to (a) prohibit non-natural entities from being designated as an Owner, (b) prohibit anyone other than your Spouse from being a joint Owner; and (c) impose other designation restrictions from time to time.
For the Single Life Option, the Covered Life is most often the same as the Contract Owner and joint Owner (which could be two different people). In the Joint/Spousal Option, the Covered Life is most often the Contract Owner and his or her Spouse, as joint Owner or Beneficiary.
The Relevant Covered Life will be one factor used to establish your Withdrawal Percent. When the Single Life Option is chosen, we use the older Covered Life as the Relevant Covered Life; and when the Joint/Spousal Option is chosen, we use the younger Covered Life as the Relevant Covered Life.
The maximum age of any Contract Owner or Annuitant when electing this rider is 80. When the Joint/Spousal Option is chosen, the Beneficiary also must be younger than age 81.
Does electing this rider forfeit your ability to buy other riders?
Yes. If you elected this rider, you could not elect any rider other than MAV Plus (MAV only in applicable states).
How is the charge for this rider calculated?
The fee for this rider is based on your then current Payment Base (not your Contract Value) as of each Contract Anniversary. This charge will automatically be deducted from your Contract Value on your Contract Anniversary after your Anniversary Value and Payment Base have been computed and prior to all other financial transactions. In the event of a full Surrender, a prorated charge will be deducted from your Surrender Value. The charge for this rider will be withdrawn from each Sub-Account and the Fixed Accumulation Feature in the same proportion that the value of each Sub-Account bears to the total Contract Value. Except as otherwise provided below, we will continue to deduct this charge until we begin to make Annuity Payouts. The rider charge may limit access to the Fixed Accumulation Feature in certain states.
Does the Benefit Amount/Payment Base change under this rider?
Yes. Your initial Payment Base equals your initial Premium Payment. Your Payment Base will fluctuate based on subsequent Premium Payments and partial Surrenders. Your Payment Base can never be less than $0 or more than $5 million. Any activities that would otherwise increase the Payment Base above this ceiling will not be included for any benefits under this rider. The Payment Base will be recalculated based on:
•
Subsequent Premium Payments. Subsequent Premium Payments increase your Payment Base on a dollar-for-dollar basis.


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•
Partial Surrenders. Partial Surrenders may trigger a recalculation of the Payment Base depending on (a) whether the partial Surrender takes place prior or during an Eligible Withdrawal Year, and (b) if the aggregate amount of the partial Surrenders during any Contract Year exceeds the applicable Threshold, as discussed below:
A.
If cumulative partial Surrenders taken during any Contract Year and prior to an Eligible Withdrawal Year are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Payment Base on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are greater than the Threshold (subject to rounding), then we will reduce the Payment Base on a (i) dollar-for-dollar basis up to the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold.
B.
If cumulative partial Surrenders during an Eligible Withdrawal Year are (i) equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will not reduce the Payment Base.
C.
For any partial Surrender that causes cumulative partial Surrenders in an Eligible Withdrawal Year to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Payment Base on a proportionate basis for the amount in excess of the Lifetime Benefit Payment.
Partial Surrenders taken during any Contract Year that cumulatively exceed the Annual Withdrawal Amount but do not exceed the Lifetime Benefit Payment will be free of any applicable CDSC.
Partial Surrenders will diminish the Guaranteed Minimum Death Benefit. Please refer to "Is the rider designed to pay you a Death Benefit" and the Examples in Appendix I for a more complete description of these effects.
Is this rider designed to pay you withdrawal benefits for your lifetime?
Yes. However, your Withdrawal Percent, and therefore the amount of your Lifetime Benefit Payment, is dependent upon when you take your first partial Surrender. For instance,
•
If you take your first partial Surrender before an Eligible Withdrawal Year, your Withdrawal Percent will never increase above 5% for Single Life Option or 4.5% for Joint/Spousal option for the remaining duration of your Contract.
•
If you take your first partial Surrender during an Eligible Withdrawal Year, your Withdrawal Percent will never increase above the Withdrawal Percent corresponding with the attained age of the Relevant Covered Life as of the Contract Anniversary prior to the first partial Surrender. If such a partial Surrender took place during the first Contract Year, we will use the attained age of the Relevant Covered Life as of Contract issue date to set the Withdrawal Percent. Once the Withdrawal Percent has been established, it will not change for the remaining duration of your Contract. In other words, prior to the Relevant Covered Life turning 80, the longer the first partial Surrender is delayed, the higher your Withdrawal Percent shall be.
Attained age of Relevant Covered
Life on the Contract Anniversary
prior to the first Partial Surrender
 
Withdrawal Percent
 
Single Life
Option
 
Joint/Spousal
Option
60-64
 
5.0%
 
4.5%
65-69
 
5.5%
 
5.0%
70-74
 
6.0%
 
5.5%
75-79
 
6.5%
 
6.0%
80+
 
7.0%
 
6.5%
Your Withdrawal Percent may change based on a permissible Covered Life change. If you choose to receive less than your full Lifetime Benefit Payment in any Contract Year; you will not be able to carry remaining amounts forward to future Contract Years.
Is this rider designed to pay you a Death Benefit?
Yes. This Guaranteed Minimum Death Benefit guarantees that we will pay a Death Benefit equal to the greater of Premium Payments reduced for partial Surrenders or Contract Value as of the date we receive due proof of death of the Contract Owner(s) or Annuitant. Termination of this rider will result in the rescission of the Guaranteed Minimum Death Benefit and result in your Beneficiary receiving the Contract Value as of the date we receive due proof of death. Partial Surrenders will affect the Guaranteed Minimum Death Benefit as follows:
A.
If cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are greater than the Threshold (subject to rounding), we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold.
B.
If cumulative partial Surrenders during an Eligible Withdrawal Year are (i) equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic


38
 
 
 

Income Program to satisfy RMD; then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis.
C.
For any partial Surrender that causes cumulative partial Surrenders in an Eligible Withdrawal Year to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Lifetime Benefit Payment, and (ii) proportionate basis for the amount in excess of the Lifetime Benefit Payment.
Please refer to the section labeled “Can your Spouse continue your Withdrawal Benefit” for more information on the continuation of the Lifetime Benefit Payments by your Spouse.
Does this rider replace the standard Death Benefit?
Yes.
Can you revoke this rider?
Yes. Anytime following the earlier of Spousal Contract continuation or the 5th Contract Year, the Contract Owner may also elect to revoke the Lifetime Withdrawal Benefits whereupon we will deduct one last pro-rated fee for this rider and only the Guaranteed Minimum Death Benefit shall continue to apply. You may not revoke the Guaranteed Minimum Death Benefit, although the Guaranteed Minimum Death Benefit will be reduced and/or eliminated due to partial Withdrawals. Certain changes in the Covered Life will also constitute a revocation of the Withdrawal Benefits. A Company-sponsored exchange of this rider will not be considered to be a revocation or termination of this rider.
If the Lifetime Withdrawal Benefit is revoked:
•
it cannot be re-elected;
•
you will not receive any Lifetime Withdrawal Payments;
•
we will continue the Guaranteed Minimum Death Benefit only. We will reduce the Guaranteed Minimum Death Benefit for any partial Surrender after the date the Lifetime Withdrawal Benefit was revoked, in proportion to the reduction in Contract Value due to such partial Surrender;
•
you will no longer be subject to this rider’s Investment Restrictions; and
•
you become subject to the rules applicable when the Contract Value is below our minimum Contract Value then in effect.
On the date the Lifetime Withdrawal Benefit is revoked, a prorated share of the rider charge will be assessed.  After that, the rider charge will no longer be assessed. If you elected the Single Life Option, and the Lifetime Withdrawal Benefit is revoked under the Spousal Contract continuation provision, the rider charge will not be assessed on the date the rider is revoked.
What effect do partial or full Surrenders have on your benefits under this rider?
Please refer to the discussion under “Does the Benefit Amount/Payment Base change under this rider?” for the effect of partial Surrenders on your Payment Base, Guaranteed Minimum Death Benefit and Lifetime Benefit Payments. You may make a full Surrender of your entire Contract at any time. However, you will receive your Contract Value with any applicable charges deducted and not the Payment Base or any Lifetime Benefit Payment that you would have received under this rider. If Your Contract Value is reduced below our minimum Contract Value rules in effect on a particular Valuation Day, and your Lifetime Benefit Payment amount remains greater than zero, then we will consider this date as your Annuity Commencement Date and we will no longer accept subsequent Premium Payments. Please see “Is there a separate Minimum Amount Rule under this rider?” and “What happens at the Annuity Commencement Date under this rider?” for more information.
Is there a separate Minimum Amount Rule under this rider?
Yes.  If your Contract Value is reduced below our minimum Contract Value then in effect, your Annuity Commencement Date will be attained and we will no longer accept subsequent Premium Payments. Your options at that time are described in the section entitled “What happens if you annuitize your Contract?." You may elect the frequency of your payments from those offered by us at such time, but will not be less frequently than annually.
What happens if you change ownership?
Inasmuch as this rider is affected only by changes to the Covered Life, only these types of changes are discussed below. We reserve the right to approve all Covered Life changes. Certain approved changes in the designation of the Covered Life may cause a recalculation of the benefits. Covered Life changes also allow us, in our discretion, to impose investment restrictions, as described below.
Any Covered Life change made within the first 6 months from the Contract Issue date will have no impact on the Payment Base or Guaranteed Minimum Death Benefit as long as each succeeding Covered Life is less than the maximum age limitation of the rider at the time of the change. The Withdrawal Percent and Lifetime Benefit Payment will thereafter change based on the age of the new Relevant Covered Life.
After the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and partial Surrenders have not yet been taken, in the event that you and your Spouse become legally divorced, you may add a new Spouse to the Contract. Provided that the age limitation of the rider is not exceeded, the Payment Base and Guaranteed Minimum Death Benefit will


39
 
 
 

remain the same. We will recalculate your Withdrawal Percent based on the age of the younger Covered Life as of the date of the change.
Alternatively, if after the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and partial Surrenders have been taken, in the event that you and your Spouse become legally divorced, you may only remove your ex-Spouse from the Contract whereupon the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will then recalculate your Withdrawal Percent based on the age of the remaining Covered Life as of the date of the change.
You may not convert your Joint/Spousal Option election to a Single Life Option. In addition, after the first six months following the Contract issue date, if any Covered Life change takes place that is not due to a divorce, then we will:
A.
If the older Covered Life after the change is equal to or less than the maximum age limitation of the rider at the time of the change, then we will revoke the Withdrawal Benefits of this rider and continue the Guaranteed Minimum Death Benefit only. The Guaranteed Minimum Death Benefit will be recalculated to be the lesser of the Contract Value or the Guaranteed Minimum Death Benefit effective on the date of the change. The charge for this rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter.
B.
If the older Covered Life after the change exceeds the maximum age limitation of the rider at the time of the change, or we no longer offer this rider, then the rider will terminate. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value.
If you elected the Single Life Option and any Covered Life changes after the first 6 months from Contract Issue date, then:
A.
If the older Covered Life after the change exceeds the maximum age limitation of this rider at the time of the change; the rider will be terminated and removed from the Contract. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value; or
B.
If we no longer offer this rider, we will continue the Guaranteed Minimum Death Benefit after resetting this benefit to the lower of the then applicable Guaranteed Minimum Death Benefit or Contract Value on the effective date of the Covered Life change; whereupon the Withdrawal Benefit will be revoked. The charge for this rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter; or
C.
If we offer this rider and: (i) if partial Surrenders have been taken prior to the first Contract Anniversary, then we will use the attained age of the oldest Covered Life as of the rider effective date to reset the Withdrawal Percent, or (ii) if partial Surrenders have not been taken prior to the first Contract Anniversary, then we will use the attained age of the older Covered Life as of the Contract Anniversary prior to the first partial Surrender to reset the Withdrawal Percent. The Payment Base will be recalculated to be the lesser of the Contract Value or the Payment Base effective on the date of the change. The Guaranteed Minimum Death Benefit will be recalculated to be the lesser of the Contract Value or the Guaranteed Minimum Death Benefit effective on the date of the change.
If the rider is no longer available for sale, we will determine the issue age limitation of the rider on a non-discriminatory basis.
The following tables illustrate only some of the various changes and the resulting outcomes associated with deaths of the Contract Owner(s) or Annuitant before and after the Annuity Commencement Date.
Single Life Option Election:
If the deceased is . . .
and . . .
and . . .
then the . . .
Contract Owner
There is a surviving non-spousal Contract Owner
The Annuitant is living or deceased
Joint Contract Owner receives the Death Benefit and this rider terminates
Contract Owner
There is a surviving spousal
Contract Owner
The Annuitant is living or deceased
Joint Contract Owner receives the Death Benefit and this rider can continue under Spousal Contract continuation
Contract Owner
There is no surviving Contract Owner
The Annuitant is living or deceased
Rider terminates. Designated Beneficiary receives the Death Benefit
Contract Owner
There is no surviving Contract Owner or Beneficiary
The Annuitant is living or deceased
Rider terminates. Estate receives the Death Benefit
Annuitant
Contract Owner is living
There is no Contingent Annuitant and the Contract Owner becomes the Contingent Annuitant
Contract continues, no Death Benefit is paid, and this rider continues


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Annuitant
Contract Owner is living
There is no Contingent Annuitant and the Contract Owner waives their right to become the Contingent Annuitant
Rider terminates and Contract Owner receives the Death Benefit
Annuitant
Contract Owner is Living
Contingent Annuitant is Living
Contingent Annuitant becomes the Annuitant and the Contract and this rider continues
Joint/Spousal Election:
If the deceased is . . .
and . . .
and . . .
then the . . .
Contract Owner
There is a surviving Contract Owner
The Annuitant is living or deceased
The surviving Contract Owner continues the Contract and rider; we will increase the Contract Value to the Death Benefit value
Contract Owner
There is no surviving Contract Owner
The Spouse is the sole primary beneficiary
Follow Spousal Contract continuation rules for joint life elections
Contract Owner
There is no surviving Contract Owner or Beneficiary
The Annuitant is living or deceased
Rider terminates and Contract Owner’s estate receives the Death Benefit
Annuitant
The Contract Owner is living
There is a Contingent Annuitant
The Rider continues; upon the death of the last surviving Covered Life, the rider will terminate.
Ownership changes may be taxable to you. We recommend that you consult with a tax adviser before making any ownership changes.
Can your Spouse continue your Withdrawal Benefit?
•
Single Life Option:
If a Covered Life dies and the Beneficiary is the deceased Covered Life’s Spouse at the time of death, such Spouse may continue the Contract. If the Spouse elects to continue the Contract and this rider, we will continue the rider with respect to all Lifetime Withdrawal Benefits at the charge that is currently being assessed for new sales of this rider at the time of continuation. We will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater. The Covered Life will be re-determined on the date of Spousal Contract continuation. If the new Covered Life is less than age 81 at the time of the Spousal Contract continuation, and the rider is still available for sale, the Payment Base and the Guaranteed Minimum Death Benefit will be set equal to the Contract Value, the Withdrawal Percent will be recalculated based on the age of the older remaining Covered Life on the effective date of the Spousal Contract continuation. If the new Covered Life is 81 or older at the time of the Spousal Contract continuation, the rider will terminate and the Guaranteed Minimum Death Benefit will be equal to the Contract Value.
If we are no longer offering this rider at the time of Spousal Contract continuation, we will revoke the Lifetime Withdrawal Benefit, the Guaranteed Minimum Death Benefit will be set equal to the Contract Value and the rider charge will no longer be assessed.
•
Joint/Spousal Option:
This rider is designed to facilitate the continuation of your rights under this rider by your Spouse through the inclusion of a Joint/Spousal Option. If a Covered Life dies and the Spouse elects to continue the Contract, we will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater and we will continue the rider with respect to all benefits at the current rider charge. The benefits will be reset as follows:
•
The Payment Base will be equal to the greater of Contract Value or the Payment Base on the Spousal Contract continuation date;
•
The Guaranteed Minimum Death Benefit will be equal to the Contract Value on the Spousal Contract continuation date;
•
The Withdrawal Percent will remain at the current percentage if partial Surrenders have commenced; otherwise the Withdrawal Percent will be based on the attained age of the remaining Covered Life on the Contract Anniversary prior to the first partial Surrender; and
•
The Lifetime Benefit Payment will be recalculated to equal the Withdrawal Percent multiplied by the greater of the Contract Value or Payment Base on the date of Spousal Contract continuation.


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The remaining Covered Life can not name a new Owner of the Contract. Any new beneficiary that is added to the Contract will not be taken into consideration as a Covered Life. The rider will then terminate upon the death of the remaining Covered Life.
If the Spouse elects to continue the Contract and revoke the Lifetime Withdrawal Benefit, we will assess the charge on the revocation date and it will no longer be assessed thereafter. The Covered Life will be re-determined on the date of Spousal Contract continuation for purposes of the Guaranteed Minimum Death Benefit. If the age of the Covered Life is greater than the age limitation of the rider at the time of Spousal Contract continuation, the rider will terminate and the Guaranteed Minimum Death Benefit will equal the Contract Value.
What happens at your Annuity Commencement Date under this rider?
You may continue your Lifetime Benefit Payment provided under this rider by electing the Fixed Lifetime and Period Certain Payout. The duration of the period certain will be determined by taking the rider Death Benefit and dividing it by the Lifetime Benefit Payment. The minimum amount paid under this annuitization option is equal to the rider Death Benefit on the Annuity Commencement Date. This annuitization option will not be available if you have revoked your Withdrawal Feature. Alternatively, you may choose any of the annuitization options provided under your Contract. In this instance, you will forfeit the Lifetime Benefit Payments provided under this rider.
Annuity Payout Options under this rider:
•
Single Life Option:
If you have elected the Single Life Option, we will issue you a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the Covered Life determined at Annuity Commencement Date. We treat the Covered Life as the Annuitant for this payout option. If there is more than one Covered Life, then the lifetime portion will be based on both Covered Lives. The Covered Lives will be the Annuitant and joint Annuitant for this payout option. The lifetime portion will terminate on the first death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit under this rider.
If the older Annuitant is age 59 or younger, we will automatically defer the date the payments begin until the anniversary after the older Annuitant attains age 60 and is eligible to receive payments in a fixed dollar amount until the later of the death of any Annuitant or a period certain.
If the Annuitant is alive and the older Annuitant is age 60 or older, you will receive payments in a fixed dollar amount until the later of the death of any Annuitant or a period certain.
The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the Withdrawal Percent on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of any Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of your Withdrawal Percent or 5%. If, at the death of any Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available.
If your Contract is issued to qualify under Section 401, 403, 408, or 457 of the Internal Revenue Code of 1986, as amended, the period certain will be limited to the life expectancy of the Annuitant, if less, at the time this option becomes effective. Such life expectancy will be computed under the mortality table then in use by Us.
•
Joint/Spousal Option:
If you have elected the Joint/Spousal Option and both Spouses are alive, we will issue you a Fixed Joint & Survivor Lifetime and Period Certain Payout. If only one Spouse is alive, we will issue a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the surviving Covered Life. The Covered Lives will be the Annuitant and Joint Annuitant for this payout option. The lifetime benefit will terminate on the last death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit.
If the younger Annuitant is alive and age 59 or younger, we will automatically defer the date that payments begin until the anniversary after the younger Annuitant attains age 60 and is eligible to receive payments in a fixed dollar amount until the death of the last surviving Annuitant or a period certain.
If the Annuitant is alive and the younger Annuitant is age 60 or older, you will receive payments in a fixed dollar amount until the later of the death of the last surviving Annuitant or a period certain.
The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the greater of your Withdrawal Percent or 4.5% on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of the last Surviving Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of your Withdrawal Percent or 4.5%. The frequencies will be among those offered by us at that time but will be no less frequently than annually. If, at the death of the last surviving Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available.


42
 
 
 

If your Contract is issued to qualify under Section 401, 403, 408, or 457 of the Internal Revenue Code of 1986, as amended. the period certain will be limited to the life expectancy of the Annuitant, if less, at the time this option becomes effective. Such life expectancy will be computed under the mortality table then in use by Us.
Are there restrictions on how you must invest?
Yes. We reserve the right to limit the Sub-Accounts into which you may allocate your Contract Value. Effective October 4, 2013, we began enforcing this contractual right for the products described in Appendix D and require that you allocate your Contract Value and future Premium Payments in accordance with the investment restrictions described in Appendix D as a condition to maintaining the withdrawal feature of the rider. Your selected allocations are automatically rebalanced quarterly. If your allocations do not comply with the investment restrictions described in Appendix D, on and after October 4, 2013 the withdrawal feature of the rider is revoked. These restrictions are intended to reduce the risk of investment losses that could require the Company to use its General Account assets to pay amounts due under the rider.
To the extent permitted by law we may modify, add, delete, or substitute, the asset allocation models, investment programs, Funds, portfolio rebalancing requirements, and other investment requirements and restrictions that apply while the rider is in effect. For instance, we might amend these asset allocation models if a Fund (i) merges into another fund, (ii) changes investment objectives, (iii) closes to further investments and/or (iv) fails to meet acceptable risk parameters. These changes will not be applied with respect to then existing investments. We will give you advance notice of these changes. Please refer to “Other Program considerations” under the section entitled “What other ways can you invest?” in Section 5.a for more information regarding the potential impact of Fund mergers and liquidations with respect to then existing investments within an asset allocation model.
Except as provided below, failure to comply with the investment restrictions will result in revocation of the withdrawal feature. If the withdrawal feature of the rider is revoked by us for violation of applicable investment restrictions, we will assess a pro-rated share of the rider charge and will no longer assess a rider charge thereafter. Revocation of the withdrawal feature will not terminate any concurrent guaranteed minimum death benefit rider.
If the withdrawal feature is revoked by us due to a failure to comply with these investment restrictions, you will have one opportunity to reinstate the rider by reallocating your Contract Value in accordance with then prevailing investment restrictions. You will have a thirty calendar day reinstatement period to do this. The reinstatement period will begin upon revocation of the withdrawal feature. Your right to reinstate the rider will be terminated if during the reinstatement period you make a subsequent Premium Payment, take a partial Surrender or make a Covered Life change. Upon reinstatement, your Payment Base will be reset at the lower of the Payment Base prior to the revocation or Contract Value as of the date of reinstatement. Your Withdrawal Percentage will be reset to equal the Withdrawal Percentage prior to revocation unless during the reinstatement period the relevant Covered Life qualifies for a new age band.
Investment in any asset allocation model could mitigate losses but also hamper potential gains. The asset allocation models that you must invest in under the rider provide very different potential risk/reward characteristics. We are not responsible for lost investment opportunities associated with the implementation and enforcement of these investment requirements and restrictions. If the restrictions are violated, the Withdrawal Benefit will be revoked but the Guaranteed Minimum Death Benefit will continue to apply.
Are there restrictions on the amount of subsequent Premium Payments?
Yes. We reserve the right to require our approval on all subsequent Premium Payments received after the first twelve months and to not accept any subsequent Premium Payment which brings the total of such cumulative subsequent Premium Payments to in excess of $100,000 without prior approval. Following your Annuity Commencement Date, we will no longer accept subsequent Premium Payments.
Can we aggregate Contracts?
Yes. For purposes of determining the Payment Base and Premium Payment limits, subject to state availability, we reserve the right to treat as one all deferred variable annuity Contracts issued by us where you have elected any optional withdrawal benefit rider. If we elect to aggregate Contracts, we will change the period over which we measure Surrenders against future Lifetime Benefit Payments.
We will treat the effective date of our aggregation election until the end of the applicable calendar year as a Contract Year for the purposes of the Lifetime Benefit Payment limit. A pro-rata rider fee will be taken at the end of that calendar year. After the first calendar year following aggregation, the Lifetime Benefit Payment limits will be aggregated and will thereafter be set on a calendar year (i.e., January 1 Contract Anniversary) basis. The rider fee then in effect will be taken at the end of each new Contract Anniversary.
Other information
This rider may not be appropriate for all investors. Several factors, among others, should be considered:
•
The benefits under this rider cannot be directly or indirectly assigned, collateralized, pledged or securitized in any way. Any such actions will invalidate this rider and allow us to terminate the rider.


43
 
 
 

•
Your annual Lifetime Benefit Payment may fluctuate based on changes in the Payment Base and Contract Value. The Payment Base is sensitive to partial Surrenders in excess of the Lifetime Benefit Payment/Threshold. It is therefore possible that Surrenders and subsequent Premium Payments within the same Contract Year, whether or not equal to one another, can result in lower Lifetime Benefit Payments.
•
Annuitizing your Contract, whether voluntary or not, will impact and possibly eliminate these “lifetime” benefits. First, you may no longer invest additional Premium Payments. Second, any Death Benefit, whether standard or optional, will immediately terminate. Third, any Guaranteed Minimum Withdrawal Benefit guarantees you elect may end. In cases where you are required to annuitize (because you reach the Annuity Commencement Date or your Guaranteed Minimum Withdrawal Benefit requires annuitization because the Contract Value has fallen below our minimum Contract Value then in effect), lifetime annuitization payments may equal (or possibly exceed) Lifetime Benefit Payments. However, where you elect to annuitize before a required Annuity Commencement Date, lifetime annuitization payments might be less than the income guaranteed by your Guaranteed Minimum Withdrawal Benefit.
•
Even though this rider is designed to provide “living benefits,” you should not assume that you will necessarily receive “payments for life” if you have violated any of the terms of this rider.
•
The amount of the Withdrawal Percent used to compute your Lifetime Benefit Payment is frozen based on the date of the first partial Surrender.
•
The determination of the “Relevant” Covered Life is established by the Company and is critical to the determination of many important benefits such as the Withdrawal Percent used to set Lifetime Benefit Payments. Applicants should confirm this determination and be sure they fully appreciate its importance before investing.
•
We may terminate this rider post-election based on your violation of benefit rules and may otherwise withdraw this rider for new sales at any time. In the event that this rider is terminated by us, your Lifetime Benefit Payments will cease; your Payment Base, including any automatic Payment Base increases will be eliminated, the Guaranteed Minimum Death Benefit will then be equal to the Contract Value, and you will not be allowed to elect any other optional benefit rider.
•
Because these benefits are bundled and interdependent upon one another, there is a risk that you may ultimately pay for benefits that you may never get to use.
•
You may select this rider only at the time of sale and once you do so, you may not add any other optional withdrawal benefits during the time you own this Contract. If you elect this rider you will not be eligible for the standard Death Benefits or be able to elect optional riders other than MAV Plus.
•
When the Single Life Option is chosen, your Spouse may find continuation of this rider to be unavailable or unattractive after the death of the Covered Life. Continuation of the benefits available in this optional rider is dependent upon its availability at the time of death of the first Covered Life and will be subject to then prevailing charges.
•
The Joint/Spousal Option provides that if you and your Spouse are no longer married for any reason other than death, the removal and replacement of your Spouse will constitute a Covered Life change. This can result in the resetting of all benefits under this rider.
•
Certain Covered Life changes may result in a reduction, recalculation or forfeiture of benefits.
•
This rider may not be suitable if a Covered Life is under attained age 60.
•
The purchase of an optional withdrawal benefit feature may not be appropriate for contracts owned by certain types of non-natural entities, including Charitable Trusts. Because many non-natural entities are required to make certain periodic distributions and those amounts may be different than the withdrawal amounts permitted by the optional withdrawal benefit feature, you may wish to consult with your tax advisor to help determine the appropriateness of this benefit.
•
We do not automatically increase payments under the Automatic Income Program if your Lifetime Benefit Payment increases. If you are enrolled in our Automatic Income Program to make Lifetime Benefit Payments and your eligible Lifetime Benefit Payment increases, please note that you need to request an increase in your Automatic Income Program. We will not individually notify you of this privilege.
•
We may terminate the entire rider when the oldest Covered Life exceeds the maximum issue age limitation in accordance with the Covered Life change and Spousal Contract continuation provisions. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value.
•
If the rider’s Withdrawal Feature has been revoked, we will continue the rider’s Death Benefit feature only.
•
In the event that this rider is terminated, whether as a result of your actions or ours, your Lifetime Benefit Payments will cease; your Payment Base will be eliminated, the Guaranteed Minimum Death Benefit will then be equal to the Contract Value, and you will not be allowed to elect any other optional benefit rider.


44
 
 
 

c.
Lifetime Income Builder II
The Annuity Commencement Date Deferral Option is not available if you have elected Lifetime Income Builder II rider.
Objective
Protect your investment from poor market performance through potential annual automatic Payment Base increases, provide longevity protection through Lifetime Benefit Payments, and ensure a Death Benefit equivalent to the greater of Premium Payments reduced for partial Surrenders or Contract Value.
How does this rider help achieve this goal?
This rider provides two separate but bundled benefits that help achieve this goal. In other words, this rider is a guarantee that you can access two ways:
•
Lifetime Withdrawal Benefit. This rider provides a series of Lifetime Benefit Payments payable in each Contract Year following the Relevant Covered Life’s 60th birthday, until the first death of any Covered Life (“Single Life Option”) or until the second death of any Covered Life (“Joint/Spousal Option”). Lifetime Benefit Payments are maximum amounts that can be withdrawn each year based on the higher of your Payment Base or Contract Value on each Contract Anniversary, as adjusted by annual Payment Base increases, multiplied by the applicable Withdrawal Percent. In an Eligible Withdrawal Year, your initial Lifetime Benefit Payment is equal to the Payment Base multiplied by the applicable Withdrawal Percentage. Payments may continue even if the Contract Value has been reduced to below our minimum Contract Value. The Withdrawal Percent varies based upon the attained age of the Relevant Covered Life as of the Contract Anniversary prior to the first partial Surrender, and the survivor option chosen. Any partial Surrender taken prior to the Contract Anniversary following the Relevant Covered Life’s 60th birthday will reduce the Payment Base and your future Lifetime Benefit Payment. Such partial Surrender may potentially eliminate your Lifetime Benefit Withdrawal Guarantee.
•
Guaranteed Minimum Death Benefit. This guaranteed minimum Death Benefit provides a Death Benefit equal to the greater of Premium Payments reduced for Partial Surrenders or Contract Value as of the date due proof of death is received for any Contract Owner or Annuitant. Partial Surrenders will reduce or eliminate the Guaranteed Minimum Death Benefit. This Guaranteed Minimum Death Benefit replaces the standard Death Benefits provided under this Contract.
When can you buy this rider?
Lifetime Income Builder II is closed to new investors (including to existing Owners).
A Covered Life must be a living person. If you choose the Joint/Spousal Option, we reserve the right to (a) prohibit non-natural entities from being designated as an Owner, (b) prohibit anyone other than your Spouse from being a joint Owner; and (c) impose other designation restrictions from time to time.
For the Single Life Option, the Covered Life is most often the same as the Contract Owner and joint Owner (which could be two different people). In the Joint/Spousal Option, the Covered Life is most often the Contract Owner and his or her Spouse, as joint Owner or Beneficiary.
The Relevant Covered Life will be one factor used to establish your Withdrawal Percent. When the Single Life Option is chosen, we use the older Covered Life as the Relevant Covered Life; and when the Joint/Spousal Option is chosen, we use the younger Covered Life as the Relevant Covered Life.
The maximum age of any Contract Owner or Annuitant when electing this rider is 75. When the Joint/Spousal Option is chosen, the Beneficiary also must be younger than age 76.
Does electing this rider forfeit your ability to buy other riders?
Yes. If you elected this rider, you could not elect any rider other than MAV Plus (MAV only in applicable states). The Annuity Commencement Date Deferral Option is not available if you have Lifetime Income Builder II rider.
How is the charge for this rider calculated?
The fee for this rider is based on your then current Payment Base (not your Contract Value) as of each Contract Anniversary. This charge will automatically be deducted from your Contract Value on your Contract Anniversary after your Anniversary Value and Payment Base have been computed and prior to all other financial transactions. In the event of a full Surrender, a prorated charge will be deducted from your Surrender Value. The charge for this rider will be withdrawn from each Sub-Account and the Fixed Accumulation Feature in the same proportion that the value of each Sub-Account bears to the total Contract Value. Except as otherwise provided below, we will continue to deduct this charge until we begin to make Annuity Payouts. The rider charge may limit access to the Fixed Accumulation Feature in certain states.
We reserve the right to increase the charge for this rider up to a maximum rate of 0.75% any time on or after the fifth anniversary of electing this rider or five years from the date from which we last notified you of a fee increase, whichever is later. Fee increases will not apply if (a) the age of the Relevant Covered Life is 80 or older; or (b) you notify us in writing of your election to permanently waive automatic Payment Base increases. This fee may not be the same as the fee that we charge new purchasers.


45
 
 
 

Subject to the foregoing limitation, we also reserve the right to charge a different fee for this rider to any new Contract Owners as a result of a change of Covered Life. Unless exempt, we will automatically deduct rider fees, as they may be increased from time to time.
We may offer a lower fee to customers who agree to participate in any asset allocation models, investment programs, or fund-of-funds we may designate from time to time.
You will receive advanced notice of any fee increase. You may decline the fee increase and permanently waive automatic Payment Base increases by:
•
Notifying us in writing, verbally or electronically, if available.
•
Written notifications must be submitted using the forms we provide. For telephonic and Internet elections, if available, you must authenticate your identity and acknowledge your understanding of the implications of declining the fee increase. We will take direction from one joint Owner. We are not responsible for lost investment opportunities associated with elections that are not in good order and for relying on the genuineness of any election.
•
We will accept your notification up to 60 days prior to the Contract Anniversary on which the fee increase is scheduled to become effective.
•
We will only honor notifications from the Owner or joint Owner and not through your broker.
•
Your decision to decline the fee increase and waive automatic Payment Base increases is irrevocable. You will not be able to accept the fee increase and resume automatic Payment Base increases in the future.
•
If you decline the fee increase, your Lifetime Benefit Payment will continue to be reset on each Contract Anniversary according to the rider’s rules.
Does the Benefit Amount/Payment Base change under this rider?
Yes. Your initial Payment Base equals your initial Premium Payment. Your Payment Base will fluctuate based on subsequent Premium Payments and partial Surrenders as well as automatic Payment Base increases. Your Payment Base can never be less than $0 or more than $5 million. Any activities that would otherwise increase the Payment Base above this ceiling will not be included for any benefits under this rider. The Payment Base will be recalculated based on certain changes in Covered Lives.
•
Automatic Payment Base increases. Your Payment Base may fluctuate based on annual “automatic Payment Base increases.” You will be qualified for annual automatic Payment Base increases commencing on your first Contract Anniversary. Automatic Payment Base increases will cease upon the earlier of the Annuity Commencement Date or the Contract Anniversary immediately following the Relevant Covered Life’s attained age of 80. Automatic Payment Base increases are based on your then current Anniversary Value (prior to the rider charge being taken) divided by your Maximum Contract Value and then reduced by 1. In no event will this factor be less than 0% or greater than 10%. Automatic Payment Base increases will not take place if the investment performance of your Sub-Accounts is neutral or negative.
•
Subsequent Premium Payments increase your Payment Base on a dollar-for-dollar basis.
•
Partial Surrenders may trigger a recalculation of the Payment Base depending on (a) whether the partial Surrender takes place prior or during an Eligible Withdrawal Year, and (b) if the cumulative amount of all partial Surrenders during any Contract Year exceeds the applicable Threshold, as discussed below:
A.
If cumulative partial Surrenders taken during any Contract Year and prior to an Eligible Withdrawal Year are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Payment Base on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are greater than the Threshold (subject to rounding), then we will reduce the Payment Base on a (i) dollar-for-dollar basis up to the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold.
B.
If cumulative partial Surrenders during an Eligible Withdrawal Year are (i) equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will not reduce the Payment Base.
C.
For any partial Surrender that causes cumulative partial Surrenders in an Eligible Withdrawal Year to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Payment Base on a proportionate basis for the amount in excess of the Lifetime Benefit Payment.
Partial Surrenders taken during any Contract Year that cumulatively exceed the Annual Withdrawal Amount but do not exceed the Lifetime Benefit Payment will be free of any applicable CDSC.
Partial Surrenders will diminish the Guaranteed Minimum Death Benefit.
Please refer to the "Is the rider designed to pay you a Death Benefit" and Examples 7, 8 and 10-14 under Lifetime Income Builder II in Appendix I for a more complete description of these effects.
Is this rider designed to pay you withdrawal benefits for your lifetime?
Yes. However, your Withdrawal Percentage and therefore the amount of your Lifetime Benefit Payment, is dependent upon when you take your first partial Surrender. For instance:


46
 
 
 

•
If you take your first partial Surrender before an Eligible Withdrawal Year, your Withdrawal Percent will never increase above 5% for Single Life Option or 4.5% for Joint/Spousal option for the remaining duration of your Contract.
•
If you take your first partial Surrender during an Eligible Withdrawal Year, your Withdrawal Percent will never increase above the Withdrawal Percent corresponding with the attained age of the Relevant Covered Life as of the Contract Anniversary prior to the first partial Surrender. If such a partial Surrender took place during the first Contract Year, we will use the attained age of the Relevant Covered Life as of Contract issuance to set the Withdrawal Percent. Once the Withdrawal Percent has been established, it will not change for the remaining duration of your Contract. In other words, prior to the Relevant Covered Life turning 80, the longer the first partial Surrender is delayed, the higher your Withdrawal Percent shall be.
Attained age of Relevant Covered
Life on the Contract Anniversary
prior to the first Partial Surrender
 
Withdrawal Percent
 
Single Life
Option
 
Joint/Spousal
Option
60-64
 
5.0%
 
4.5%
65-69
 
5.5%
 
5.0%
70-74
 
6.0%
 
5.5%
75-79
 
6.5%
 
6.0%
80+
 
7.0%
 
6.5%
Your Withdrawal Percent may change based on a permissible Covered Life change. If you choose to receive less than your full Lifetime Benefit Payment in any Contract Year, you will not be able to carry remaining amounts forward to future Contract Years.
See Examples 1-6 and 11-14 under Lifetime Income Builder II.
Is this rider designed to pay you Death Benefits?
Yes. This Guaranteed Minimum Death Benefit guarantees that we will pay a Death Benefit equal to the greater of Premium Payments reduced for partial Surrenders or Contract Value as of the date we receive due proof of death of the Contract Owner(s) or Annuitant. Termination of this rider will result in the rescission of the Guaranteed Minimum Death Benefit and result in your Beneficiary receiving the Contract Value as of the date we receive due proof of death. If the Lifetime Withdrawal Benefit is revoked, we will reduce the Guaranteed Minimum Death Benefit for any partial Surrender after the date the Lifetime Withdrawal Benefit was revoked, in proportion to the reduction in Contract Value due to such partial Surrender, and you will no longer be subject to this rider’s Investment Restrictions (if applicable to your contract (see the “State Variations” provisions in the “Miscellaneous” section)). Partial Surrenders will affect the Guaranteed Minimum Death Benefit as follows:
A.
If cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to an Eligible Withdrawal Year are greater than the Threshold (subject to rounding), then we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold.
B.
If cumulative partial Surrenders during an Eligible Withdrawal Year are (i) equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis.
C.
For any partial Surrender that causes cumulative partial Surrenders in an Eligible Withdrawal Year to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Lifetime Benefit Payment, and (ii) proportionate basis for the amount in excess of the Lifetime Benefit Payment.
Please refer to the section labeled “Can your Spouse continue your Withdrawal Benefit” for more information on the continuation of the Lifetime Benefit Payments by your Spouse.
See Examples 9 and 10 under Lifetime Income Builder II.
Does this rider replace the standard Death Benefit?
Yes.
Can you revoke this rider?
Yes. You may elect to revoke the Lifetime Withdrawal Benefit at any time and only the Guaranteed Minimum Death Benefit shall continue to apply. You may not revoke the Guaranteed Minimum Death Benefit, although the Guaranteed Minimum Death Benefit will be reduced and/or eliminated due to partial withdrawals. We may revoke the Lifetime Withdrawal Benefit under the


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Covered Life change, Spousal Contract continuation and Investment Restrictions provisions (if applicable to your contract (see the “State Variations” provision in the “Miscellaneous” section)).
If the Lifetime Withdrawal Benefit is revoked:
•
it cannot be re-elected;
•
you will not receive any Lifetime Withdrawal Payments;
•
we will continue the Guaranteed Minimum Death Benefit only. We will reduce the Guaranteed Minimum Death Benefit for any partial Surrender after the date the Lifetime Withdrawal Benefit was revoked, in proportion to the reduction in Contract Value due to such partial Surrender;
•
you will no longer be subject to this rider’s Investment Restrictions; and
•
you become subject to the rules applicable when the Contract Value is below our minimum Contract Value then in effect.
On the date the Lifetime Withdrawal Benefit is revoked, a prorated share of the rider charge will be assessed.  After that, the rider charge will no longer be assessed. If you elected the Single Life Option, and the Lifetime Withdrawal Benefit is revoked under the Spousal Contract continuation provision, the rider charge will not be assessed on the date the rider is revoked.
A Company-sponsored exchange of this rider will not be considered to be a revocation or termination of this rider.
The factors you may consider when determining whether to voluntarily revoke the Lifetime Withdrawal Benefit include:  whether you continue to want or need the longevity protection provided by Lifetime Withdrawal Benefit payments (the benefit may not be reinstated after it is revoked); whether you wish to cease paying the fees associated with the Lifetime Withdrawal Benefit (keep in mind that you have been paying fees for the Lifetime Withdrawal Benefit since the effective date of the rider), whether you no longer want to be subject to the investment restrictions required to maintain the Lifetime Withdrawal Benefit (if applicable to your contract (see the “State Variations” provisions in the “Miscellaneous” section)); and whether or not you plan on taking partial withdrawals in the future and how these partial withdrawals will reduce the Guaranteed Minimum Death Benefit. As described in the “Is this rider designed to pay you Death Benefits?” section, partial surrenders taken while the Lifetime Withdrawal Benefit is in effect reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis or on a proportionate basis (in proportion to the reduction in Contract Value due to such partial withdrawal) depending on when you take withdrawals and/or the amount of cumulative withdrawals.  Partial withdrawals taken after you revoke the Lifetime Withdrawal Benefit will reduce the Guaranteed Minimum Death Benefit on a proportionate basis. If your Account Value is less than your Guaranteed Minimum Death Benefit at the time of a partial withdrawal then reducing the Guaranteed Minimum Death Benefit on a proportionate basis will result in a greater reduction in the Guaranteed Minimum Death Benefit than if a dollar-for-dollar reduction was taken. You should consult an investment professional before making any decision to revoke the Lifetime Withdrawal Benefit.
Please see “Can your Spouse continue your Withdrawal Benefit?” and “Are there restrictions on how you must invest?” for more information.
What effect do partial or full Surrenders have on your benefits under this rider?
Please refer to “Does the Benefit Amount/Payment Base change under this rider?” for the effect of partial Surrenders on your Payment Base, Guaranteed Minimum Death Benefit and Lifetime Benefit Payments. You may make a full Surrender of your entire Contract at any time. However, you will receive your Contract Value with any applicable charges deducted and not the Payment Base or any Lifetime Benefit Payment that you would have received under this rider. If Your Contract Value is reduced below our minimum Contract Value rules in effect on a particular Valuation Day, and your Lifetime Benefit Payment amount remains greater than zero, then we will consider this date as your Annuity Commencement Date and we will no longer accept subsequent Premium Payments. Please see “Is there a separate Minimum Amount Rule under this rider?” and “What happens at the Annuity Commencement Date under this rider?” and Examples 7, 8 and 10-14 under Lifetime Income Builder II in Appendix I for more information.
Is there a separate Minimum Amount Rule under this rider?
Yes.  If your Contract Value is reduced below our minimum Contract Value then in effect, your Annuity Commencement Date will be attained and we will no longer accept subsequent Premium Payments. Your options at that time are described in the section entitled “What happens if you annuitize your Contract?." You may elect the frequency of your payments from those offered by us at such time, but will not be less frequently than annually.
What happens if you change ownership?
Inasmuch as this rider is affected only by changes to the Covered Life, only these types of changes are discussed below. We reserve the right to approve all Covered Life changes. Certain approved changes in the designation of the Covered Life may cause a re-calculation of the benefits. Covered Life changes also allow us, in our discretion, to impose investment restrictions, as described below.
Any Covered Life change made within the first 6 months from the Contract Issue date will have no impact on the Payment Base or Guaranteed Minimum Death Benefit as long as each succeeding Covered Life is less than the maximum age limitation


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of the rider at the time of the change. The Withdrawal Percent and Lifetime Benefit Payment will thereafter change based on the age of the new relevant Covered Life.
After the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and partial Surrenders have not yet been taken, in the event that you and your Spouse become legally divorced, you may add a new Spouse to the Contract. Provided that the age limitation of the rider is not exceeded, the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will then recalculate your Withdrawal Percent based on the age of the younger Covered Life as of the date of the change.
Alternatively, if after the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and Surrenders have been taken, in the event that you and your Spouse become legally divorced, you may only remove your ex-Spouse from the Contract whereupon the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will then recalculate your Withdrawal Percent based on the age of the remaining Covered Life as of the date of the change.
You may not convert your Joint/Spousal Option election to a Single Life Option. In addition, after the first six months following the Contract issue date, if any Covered Life change takes place that is not due to a divorce, then:
A.
If the older Covered Life after the change is equal to or less than the maximum age limitation of the rider at the time of the change, then we will revoke the Withdrawal Benefits of this rider and continue the Guaranteed Minimum Death Benefit after resetting this benefit to the lower of the then applicable Guaranteed Minimum Death Benefit or Contract Value on the effective date of the Covered Life change. The charge for this rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter.
B.
If the older Covered Life after the change exceeds the maximum age limitation of the rider at the time of the change, then the rider will terminate. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value.
If you elected the Single Life Option and any Covered Life changes after the first 6 months from Contract Issue date, then we will:
A.
If the older Covered Life after the change exceeds the maximum age limitation of this rider at the time of the change; the rider will be terminated and removed from the Contract. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value; or
B.
If we no longer offer this rider, we will continue the Guaranteed Minimum Death Benefit after resetting this benefit to the lower of the then applicable Guaranteed Minimum Death Benefit or Contract Value on the effective date of the Covered Life change; whereupon the Withdrawal Benefit will terminate. The charge for this rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter; or
C.
If we offer this rider and: (i) if partial Surrenders have been taken prior to the first Contract Anniversary, then we will use the attained age of the oldest Covered Life as of the rider effective date to reset the Withdrawal Percent, or (ii) if partial Surrenders have not been taken prior to the first Contract Anniversary, then we will use the attained age of the older Covered Life as of the Contract Anniversary prior to the first partial Surrender to reset the Withdrawal Percent. The Payment Base will be recalculated to be the lesser of the Contract Value or the Payment Base effective on the date of the change. The Guaranteed Minimum Death Benefit will be recalculated to be the lesser of the Contract Value or the Guaranteed Minimum Death Benefit effective on the date of the change. The Maximum Contract Value will be recalculated to equal the Contract Value on the date of the change.
If the rider is no longer available for sale, the maximum age limitation of the rider is 76.
The following tables illustrate only some of the various changes and the resulting outcomes associated with deaths of the Contract Owner(s) or Annuitant before and after the Annuity Commencement Date.
Single Life Option Election:
If the Deceased is . . .
and . . .
and . . .
then the . . .
Contract Owner
There is a surviving non-spousal Contract Owner
The Annuitant is living or deceased
Joint Contract Owner receives the Death Benefit and this rider terminates
Contract Owner
There is a surviving spousal
Contract Owner
The Annuitant is living or deceased
Joint Contract Owner receives the Death Benefit and this rider can continue under Spousal Contract continuation
Contract Owner
There is no surviving Contract
Owner
The Annuitant is living or deceased
Rider terminates. Designated Beneficiary receives the Death Benefit
Contract Owner
There is no surviving Contract Owner or Beneficiary
The Annuitant is living or deceased
Rider terminates. Estate receives the Death Benefit


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Annuitant
Contract Owner is living
There is no Contingent Annuitant and the Contract Owner becomes the Contingent Annuitant
Contract continues, no Death Benefit is paid, and this rider continues
Annuitant
Contract Owner is living
There is no Contingent Annuitant and the Contract Owner waives their right to become the Contingent Annuitant
Rider terminates and Contract Owner receives the Death Benefit
Annuitant
Contract Owner is Living
Contingent Annuitant is Living
Contingent Annuitant becomes the Annuitant and the Contract and this rider continues
Joint/Spousal Election:
If the Deceased is . . .
and . . .
and . . .
then the . . .
Contract Owner
There is a surviving Contract Owner
The Annuitant is living or deceased
The surviving Contract Owner continues the Contract and rider; we will increase the Contract Value to the Death Benefit value
Contract Owner
There is no surviving Contract Owner
The Spouse is the sole primary beneficiary
Follow Spousal Contract continuation rules for joint life elections
Contract Owner
There is no surviving Contract Owner or Beneficiary
The Annuitant is living or deceased
Rider terminates and Contract Owner’s estate receives the Death Benefit
Annuitant
The Contract Owner is living
There is a Contingent Annuitant
The Rider continues; upon the death of the last surviving Covered Life, the rider will terminate.
Ownership changes may be taxable to you. We recommend that you consult with a tax adviser before making any ownership changes.
Can your Spouse continue your Withdrawal Benefit?
•
Single Life Option:
If a Covered Life dies and the Beneficiary is the deceased Covered Life’s Spouse at the time of death, such Spouse may continue the Contract. If the Spouse elects to continue the Contract and this rider, we will continue the rider with respect to all Lifetime Withdrawal Features at the charge that is currently being assessed for new sales at the time of continuation. We will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater. The Covered Life will be re-determined on the date of Spousal Contract continuation. If the new Covered Life is less than age 81 at the time of the Spousal Contract continuation, and the rider is still available for sale, the Payment Base and the Guaranteed Minimum Death Benefit will be set equal to the Contract Value, the Withdrawal Percent will be recalculated based on the age of the older remaining Covered Life on the effective date of the Spousal Contract continuation. If the new Covered Life is 81 or older at the time of the Spousal Contract continuation, the rider will terminate and the Guaranteed Minimum Death Benefit will be equal to the Contract Value.
If we are no longer offering this rider at the time of Spousal Contract continuation, we will revoke the Lifetime Withdrawal Benefit and the rider charge will no longer be assessed.
•
Joint/Spousal Option:
This rider is designed to facilitate the continuation of your rights under this rider by your Spouse through the inclusion of a Joint/Spousal Option. If a Covered Life dies and the Spouse elects to continue the Contract, we will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater and we will continue the rider with respect to all benefits at the current rider charge. The benefits will be reset as follows:
•
The Payment Base will be equal to the greater of Contract Value or the Payment Base on the Spousal Contract continuation date
•
The Guaranteed Minimum Death Benefit will be equal to the Contract Value on the Spousal Contract continuation date
•
The Withdrawal Percent will remain at the current percentage if partial Surrenders have commenced; otherwise the Withdrawal Percent will be based on the attained age of the remaining Covered Life on the Contract Anniversary prior to the first partial Surrender


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•
The Lifetime Benefit Payment will be recalculated to equal the Withdrawal Percent multiplied by the greater of the Contract Value or Payment Base on the date of Spousal Contract continuation.
The remaining Covered Life can not name a new owner on the Contract. Any new beneficiary that is added to the Contract will not be taken into consideration as a Covered Life. The rider will terminate upon the death of the remaining Covered Life.
If the Spouse elects to continue the Contract and revoke the Lifetime Withdrawal Benefit, we will assess the charge on the revocation date and it will no longer be assessed thereafter. The Covered Life will be re-determined on the date of Spousal Contract continuation for purposes of the Guaranteed Minimum Death Benefit. If the Covered Life is greater than the age limitation of the rider at the time of Spousal Contract continuation, the rider will terminate and the Guaranteed Minimum Death Benefit will equal the Contract Value.
See Example 17 under Lifetime Income Builder II.
What happens at your Annuity Commencement Date under the rider?
You may continue your Lifetime Benefit Payment provided under this rider by electing the Fixed Lifetime and Period Certain Payout. The duration of the period certain will be determined by taking the rider Death Benefit and dividing it by the Lifetime Benefit Payment. The minimum amount paid under this annuitization option is equal to the rider Death Benefit on the Annuity Commencement Date. This annuitization option will not be available if you have revoked your Withdrawal Feature. Alternatively, you may choose any of the annuitization options provided under your Contract. In this instance, you will forfeit the Lifetime Benefit Payments provided under this rider.
•
Single Life Option:
If you have elected the Single Life Option, we will issue you a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the Covered Life determined at Annuity Commencement Date. We treat the Covered Life as the Annuitant for this payout option. If there is more than one Covered Life, then the lifetime portion will be based on both Covered Lives. The Covered Lives will be the Annuitant and joint Annuitant for this payout option. The lifetime portion will terminate on the first death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit under this rider.
If the older Annuitant is age 59 or younger, we will automatically defer the date the payments begin until the anniversary after the older Annuitant attains age 60 and is eligible to receive payments in a fixed dollar amount until the later of the death of any Annuitant or a period certain.
If the Annuitant and joint Annuitant are alive and the older Annuitant is age 60 or older, you will receive payments in a fixed dollar amount until the later of the death of any Annuitant or a period certain.
The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the Withdrawal Percent on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of any Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of the Withdrawal Percent or 5%. If, at the death of any Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available.
If your Contract is issued to qualify under Section 401, 403, 408, or 457 of the Internal Revenue Code of 1986, as amended, the period certain will be limited to the life expectancy of the Annuitant, if less, at the time this option becomes effective. Such life expectancy will be computed under the mortality table then in use by Us.
•
Joint/Spousal Option:
If you have elected the Joint/Spousal Option and both Spouses are alive, we will issue you a Fixed Joint & Survivor Lifetime and Period Certain Payout. If only one Spouse is alive, we will issue a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the surviving Covered Life. The Covered Lives will be the Annuitant and Joint Annuitant for this payout option. The lifetime benefit will terminate on the last death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit.
If the younger Annuitant is alive and age 59 or younger, we will automatically defer the date that payments begin until the anniversary after the younger Annuitant attains age 60 and is eligible to receive payments in a fixed dollar amount until the death of the last surviving Annuitant or a period certain.
If the Annuitant is alive and the younger Annuitant is age 60 or older, you will receive payments in a fixed dollar amount until the later of the death of the last surviving Annuitant or a period certain.
The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by the product of the Payment Base multiplied by the greater of your Withdrawal Percent or 4.5% on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of the last Surviving Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to the Payment Base on the Annuity Commencement Date multiplied by the greater of your Withdrawal Percent or 4.5%. The frequencies will be among those offered by us at that time but will be no less frequently than annually. If, at the death of the last surviving Annuitant, payments have been made for


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less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available.
If your Contract is issued to qualify under Section 401, 403, 408, or 457 of the Internal Revenue Code of 1986, as amended, the period certain is limited to the life expectancy of the Annuitant, if less, at the time this option becomes effective. Such life expectancy will be computed under the mortality table then in use by Us.
Are there restrictions on how you must invest?
Yes. Effective October 4, 2013, we began enforcing our contractual right to require that you allocate your Contract Value and future Premium Payments in accordance with the investment restrictions described in Appendix D as a condition to maintaining the withdrawal feature of the rider. Your selected allocations are automatically rebalanced quarterly. If your allocations do not comply with the investment restrictions described in Appendix D, on and after October 4, 2013 the withdrawal feature of your rider is revoked. These restrictions are intended to reduce the risk of investment losses that could require the Company to use its General Account assets to pay amounts due under the rider.
To the extent permitted by law, we may modify, add, delete, or substitute (to the extent permitted by applicable law), the asset allocation models, investment programs, Funds, portfolio rebalancing requirements, and other investment requirements and restrictions that apply while the rider is in effect. For instance, we might amend these asset allocation models if a Fund (i) merges into another fund, (ii) changes investment objectives, (iii) closes to further investments and/or (iv) fails to meet acceptable risk parameters. These changes will not be applied with respect to then existing investments. We will give you advance notice of these changes. Please refer to “Other Program considerations” under the section entitled “What other ways can you invest?” in Section 5.a for more information regarding the potential impact of Fund mergers and liquidations with respect to then existing investments within an asset allocation model.
Except as provided below, failure to comply with the investment restrictions will result in revocation of the withdrawal feature. If the withdrawal feature of the rider is revoked by us for violation of applicable investment restrictions, we will assess a pro-rated share of the rider charge and will no longer assess a rider charge thereafter. Revocation of the withdrawal feature will not terminate any concurrent guaranteed minimum death benefit rider.
If the withdrawal feature is revoked by us due to a failure to comply with these investment restrictions, you will have one opportunity to reinstate the rider by reallocating your Contract Value in accordance with then prevailing investment restrictions. You will have a thirty calendar day reinstatement period to do this. The reinstatement period will begin upon revocation of the withdrawal feature. Your right to reinstate the rider will be terminated if during the reinstatement period you make a subsequent Premium Payment, take a partial Surrender, or make a Covered Life change. Upon reinstatement, your Payment Base will be reset at the lower of the Payment Base prior to the revocation or Contract Value as of the date of reinstatement. Your Withdrawal Percentage will be reset to equal the Withdrawal Percentage prior to revocation unless during the reinstatement period the relevant Covered Life qualifies for a new age band.
Investment in any asset allocation model could mitigate losses but also hamper potential gains. The asset allocation models that you must invest in under the rider provide very different potential risk/reward characteristics. We are not responsible for lost investment opportunities associated with the implementation and enforcement of these investment requirements and restrictions. If the restrictions are violated, the Withdrawal Benefit will be revoked but the Guaranteed Minimum Death Benefit will continue to apply.
Are there restrictions on the amount of subsequent Premium Payments?
Yes. We reserve the right to require our approval on all subsequent Premium Payments received after the first twelve months. We will not accept any subsequent Premium Payment which brings the total of such cumulative subsequent Premium Payments to in excess of $100,000 without prior approval. This restriction is not currently enforced. Following your Annuity Commencement Date, we will no longer accept subsequent Premium Payments.
See Examples 9 and 10 under Lifetime Income Builder II.
Can we aggregate Contracts?
Yes. For purposes of determining the Payment Base and Premium Payment limits, subject to state availability, we reserve the right to treat as one all deferred variable annuity Contracts issued by us where you have elected any optional withdrawal benefit rider. If we elect to aggregate Contracts, we will change the period over which we measure Surrenders against future Lifetime Benefit Payments.
We will treat the effective date of our aggregation election until the end of the applicable calendar year as a Contract Year for the purposes of the Lifetime Benefit Payment limit. A pro-rata rider fee will be taken at the end of that calendar year. After the first calendar year following aggregation, the Lifetime Benefit Payment limits will be aggregated and will thereafter be set on a calendar year (i.e., January 1 Contract Anniversary) basis. The rider fee then in effect will be taken at the end of each new Contract Anniversary.


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Other information
•
This rider may not be appropriate for all investors. Several factors, among others, should be considered:
•
The benefits under this rider cannot be directly or indirectly assigned, collateralized, pledged or securitized in any way. Any such actions will invalidate this rider and allow us to terminate the rider.
•
Your annual Lifetime Benefit Payments may fluctuate based on changes in the Payment Base and Contract Value. The Payment Base is sensitive to partial Surrenders in excess of the Lifetime Benefit Payment/Threshold. It is therefore possible that Surrenders and subsequent Premium Payments within the same Contract Year, whether or not equal to one another, can result in lower Lifetime Benefit Payments.
•
Annuitizing your Contract, whether voluntary or not, will impact and possibly eliminate these “lifetime” benefits. First, you may no longer invest additional Premium Payments. Second, any Death Benefit, whether standard or optional, will immediately terminate. Third, any Guaranteed Minimum Withdrawal Benefit guarantees you elect may end. In cases where you are required to annuitize (because you reach the Annuity Commencement Date or your Guaranteed Minimum Withdrawal Benefit requires annuitization because the Contract Value has fallen below our minimum Contract Value then in effect), you will forfeit automatic Payment Base increases (if applicable) and lifetime annuitization payments may equal (or possibly exceed) Lifetime Benefit Payments. However, where you elect to annuitize before a required Annuity Commencement Date, lifetime annuitization payments might be less than the income guaranteed by your Guaranteed Minimum Withdrawal Benefit.
•
Even though this rider is designed to provide “living benefits,” you should not assume that you will necessarily receive “payments for life” if you have violated any of the terms of this rider.
•
The amount of the Withdrawal Percent used to compute your Lifetime Benefit Payment is frozen based on the date of the first partial Surrender.
•
The determination of the “Relevant” Covered Life is established by the Company and is critical to the determination of many important benefits such as the Withdrawal Percent used to set Lifetime Benefit Payments. Applicants should confirm this determination and be sure they fully appreciate its importance before investing.
•
We may terminate this rider post-election based on your violation of benefit rules and may otherwise withdraw this rider for new sales at any time. In the event that this rider is terminated by us, your Lifetime Benefit Payments will cease; your Payment Base, including any automatic Payment Base increases will be eliminated, the Guaranteed Minimum Death Benefit will then be equal to the Contract Value, and you will not be allowed to elect any other optional benefit rider.
•
Because these benefits are bundled and interdependent upon one another, there is a risk that you may ultimately pay for benefits that you may never get to use.
•
You may select this rider only at the time of sale and once you do so, you may not add any other optional withdrawal benefits during the time you own this Contract. If you elect this rider you will not be eligible for the standard Death Benefits or able to elect optional riders other than MAV Plus.
•
When the Single Life Option is chosen, Spouses may find continuation of this rider to be unavailable or unattractive after the death of the Contract Owner. Continuation of the benefits available in this optional rider is dependent upon its availability at the time of death of the first Covered Life and will be subject to then prevailing charges.
•
The Joint/Spousal Option provides that if you and your Spouse are no longer married for any reason other than death, the removal and replacement of your Spouse will constitute a Covered Life change. This can result in the resetting of all benefits under this rider.
•
Certain Covered Life changes may result in a reduction, recalculation or forfeiture of benefits.
•
This rider may not be suitable if a Covered Life is under attained age 60.
•
Annuity pay-out options available subsequent to the Annuity Commencement Date may not necessarily provide a stream of income for your lifetime and may be less than Lifetime Benefit Payments.
•
We do not automatically increase payments under the Automatic Income Program if your Lifetime Benefit Payment increases. If you are enrolled in our Automatic Income Program to make Lifetime Benefit Payments and your eligible Lifetime Benefit Payment increases, please note that you need to request an increase in your Automatic Income Program. We will not individually notify you of this privilege.
•
The purchase of an optional withdrawal benefit feature may not be appropriate for contracts owned by certain types of non-natural entities, including Charitable Trusts. Because many non-natural entities are required to make certain periodic distributions and those amounts may be different than the withdrawal amounts permitted by the optional withdrawal benefit feature, you may wish to consult with your tax advisor to help determine the appropriateness of this benefit.
•
We may terminate the entire rider when the oldest Covered Life exceeds the maximum issue age limitation in accordance with the Covered Life change and Spousal Contract continuation provisions. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value.
•
If the rider’s Withdrawal Feature has been revoked, we will continue the rider’s Death Benefit feature only.


53
 
 
 

•
In the event that this rider is terminated, whether as a result of your actions or ours, your Lifetime Benefit Payments will cease; your Payment Base will be eliminated, the Guaranteed Minimum Death Benefit will then be equal to the Contract Value, and you will not be allowed to elect any other optional benefit rider.
d.
Principal First
If you elect the Deferral Option, this rider, including any guaranteed income benefit, death benefit settlement option and any annuitization option under this rider (i) will be terminated in their entirety; (ii) the charge for this rider will no longer be assessed; and (iii) your contract will then be subject to the contract minimum rules. If, however, you are receiving Automatic Income Payments under this rider, you may continue to do so once the Deferral Option is effective. However, you will then be subject to the contract minimum rules. That is, if after any withdrawal, whether it be a systematic withdrawal or a one-time partial Surrender, your Contract Value falls below the contract minimum, we will close your contract and pay the full Surrender Value. For more details, see the Annuity Commencement Date Deferral Option section, which is immediately prior to the subsection titled Annuity Payouts in The Contract section.
Objective
Protect your investment from poor market performance through annual Benefit Payments until the Benefit Amount is reduced to zero.
How does this rider help achieve this goal?
This rider protects your investment by guaranteeing Benefit Payments until your Benefit Amount, rather than your Contract Value, has been exhausted. You may also elect “step-ups” that reset your Benefit Amount to the then prevailing Contract Value.
You or your Spouse (if Spousal Contract continuation has been chosen) may elect to step-up your Benefit Amount following the 5th Contract Year that you added this rider to your Contract and again on each fifth anniversary from the last time you elected to step-up your Benefit Amount (or upon Spousal Contract continuation, whichever is earlier)(these dates are called “election dates” in this section). Your Benefit Amount will then become the Contract Value as of the close of business on the Valuation Date that you properly made this election. Each time that you exercise step-up rights, your Benefit Payment will be reset to 7% of the new Benefit Amount, but will never be less than your then existing Benefit Payment. You must follow certain requirements to make this election:
•
We will accept requests for a step-up in writing, verbally or electronically, if available.
•
Written elections must be submitted using the forms we provide. For telephonic and Internet elections, if available, you must authenticate your identity and acknowledge your understanding of the implications of making this election. We are not responsible for lost investment opportunities associated with elections that are not in good order and for relying on the genuineness of any election.
•
We will not accept any election request prior to an election date. You may not post-date your election.
•
If an election form is received in good order on or after an election date, the step-up will occur as of the close of business on the Valuation Day that the request is received by us at our Administrative Office. We reserve the right to require you to elect step-ups only on Contract Anniversaries.
•
We will not honor any election request if your Contract Value is less than your Benefit Amount effective as of the step-up effective date.
•
Your election is irrevocable. This means that if your Contract Value increases after your step-up, you can not ask us to reset your Benefit Amount again until your next election date. The fee for this rider may also change when you make this election and will remain in effect until your next election, if any.
When can you buy this rider?
Principal First rider is closed to new investors (including to existing Owners).
Does electing this rider forfeit your ability to buy other riders?
Yes. If you elect this rider, you may not elect any riders other than MAV Plus (MAV only in applicable states).
How is the charge for this rider calculated?
The annual charge for this rider is based on your daily Sub-Account Value and is deducted daily. The charge continues to be deducted until we begin to make Annuity Payouts.
We will recalculate the charge each time that you step-up your Benefit Amount. The fee at the time of step-up will be the charge that we are then currently charging other customers who have previously elected this rider and have elected to step-up. This fee may not be the same as, but will not be more than, the fee that we charge new purchasers or the fee we set before we cease offering this rider. If we cease sales of this rider, we will predetermine the rider charge on a non-discriminatory basis. Before you decide to exercise your step-up privileges, you should request a current prospectus which will describe the then current charge effective upon exercising step-up rights.
We also reserve the right to increase the charge for this rider up to a maximum rate of 0.75% any time on or after the fifth anniversary of electing this rider or five years from the date from which we last notified you of a fee increase, whichever is later.


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The fee increase will only apply if you elect to step-up your Benefit Amount. Subject to limitation, we also reserve the right to charge a different fee for this rider to any new Contract Owners as a result of a change of ownership of this Contract.
Does the Benefit Amount/Payment Base change under this rider?
Yes. If elected at the time of Contract issuance, your initial Benefit Amount is your initial Premium Payment. If elected after the Contract has been issued, your initial Benefit Amount will be the based on your Contract Value at the time the rider is elected. Any time after the 5th Contract Year that this rider has been in effect and thereafter on each fifth anniversary of the last step-up (or sooner upon Spousal Contract continuation); you (or your Spouse if Spousal Contract continuation rights have been elected) may elect to step-up the Benefit Amount to the Contract Value.
Your Benefit Amount will fluctuate based on subsequent Premium Payments or partial Surrenders. Partial Surrenders in excess of your Benefit Payments may also trigger a recalculation of the Benefit Amount and future Benefit Payments. Your Benefit Amount can never be more than $5 million.
You cannot elect the step-up privilege if your then current Benefit Amount is higher than your Contract Value on step-up dates.
Is this rider designed to pay you withdrawal benefits for your lifetime?
No. You can continue to take Benefit Payments until the Benefit Amount has been depleted. Once the initial Benefit Amount has been determined, we calculate the Benefit Payment. The maximum Benefit Payment is 7% of your Benefit Amount on rider effective date, or if more recently, the last date on which a step up was elected, or the Benefit Amount was reduced due to a partial Surrender exceeding the Benefit Payment. Benefit Payments can begin at any time and can be taken on any schedule that you request. Benefit Payments are non-cumulative, which means that your Benefit Payment will not increase in the future if you fail to take your full Benefit Payment for the current year. For example, if you do not take 7% one year, you may not take more than 7% the next year.
If you elect this rider when you purchase your Contract, we count one year as the time between each Contract Anniversary. If you purchase this rider after you purchase your Contract, we count the first year as the time between the date we added this rider to your Contract and your next Contract Anniversary, which could be less than a year.
Each time you add a Premium Payment, we increase your Benefit Amount by the amount of the subsequent Premium Payment. When you make a subsequent Premium Payment, your Benefit Payments will increase by 7% of the amount of the subsequent Premium Payment.
Your Benefit Amount cannot be less than $0 or more than $5 million. Any activities that would otherwise increase the Benefit Amount above this ceiling will not be included for any benefits under this rider.
Benefit Payments are treated as partial Surrenders and are deducted from your Contract Value and Benefit Amount. Each Benefit Payment reduces the amount you may Surrender under your Annual Withdrawal Amount. Surrenders in excess of your annual Benefit Payment include any applicable Contingent Deferred Sales Charge.
If, in one year, your Surrenders total more than your Benefit Payment, we will re-calculate your Benefit Amount and your Benefit Payment could be significantly lower in the future. Any time we recalculate your Benefit Amount or your Benefit Payment, we count one year as the time between the date we re-calculate and your next Contract Anniversary, which could be less than a year.
Whenever a partial Surrender is made, the Benefit Amount will be equal to the amount determined in either (A) or (B) as follows:
A.
If the total partial Surrenders since the later of (i) the most recent Contract Anniversary, or (ii) the Valuation Day that the Benefit Payment was last established (excluding establishments for subsequent Premium Payments), are equal to or less than the Benefit Payment, the Benefit Amount becomes the Benefit Amount immediately prior to the partial Surrender, less the amount of the partial
B.
If the total partial Surrenders as determined in (A) above exceed the Benefit Payment, the Benefit Amount will have an automatic reset to the greater of zero or the lesser of (i) or (ii) as follows:
(i)
The Contract Value immediately following the partial Surrender; or
(ii)
The Benefit Amount immediately prior to the partial Surrender, less the amount of the partial Surrender.
Please refer to examples 2 - 7 for Principal First in Appendix I for illustrations regarding recalculation of your Benefit Amount.
Qualified Contracts are subject to certain federal tax rules requiring that minimum distributions be withdrawn from the Contract on a calendar year basis (i.e., compared to a Contract Year basis), usually beginning after age 70½. These withdrawals are called Required Minimum Distributions. A Required Minimum Distribution may exceed your Benefit Payment, which will cause a recalculation of your Benefit Amount. Recalculation of your Benefit Amount may result in a lower Benefit Payment in the future.
Is this rider designed to pay you Death Benefits?
No. However, partial Surrenders will reduce the standard Death Benefit.
Does this rider replace standard Death Benefits?
No.


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Can you revoke this rider?
No. However, a Company-sponsored exchange of this rider will not be considered to be a revocation or termination of this rider.
What effect do partial or full Surrenders have on your benefits under this rider?
Benefit Payments are treated as partial Surrenders and are deducted from your Contract Value and Benefit Amount. Each Benefit Payment reduces the amount you may Surrender under your Annual Withdrawal Amount. Surrenders in excess of your Benefit Payment include any applicable CDSC.
If, in one year, your Surrenders total more than your Benefit Payment, we will re-calculate your Benefit Amount and your Benefit Payment could be significantly lower in the future. Any time we re-calculate your Benefit Amount or your Benefit Payment, we count one year as the time between the date we re-calculate and your next Contract Anniversary, which could be less than a year.
If your Contract Value is reduced to zero due to receiving Benefit Payments, and you still have a Benefit Amount, you will continue to receive a Benefit Payment through a fixed Annuity Payout option until your Benefit Amount is depleted. While you are receiving payments under fixed Annuity Payout options, you may not make additional Premium Payments, and if you die before you receive all of your payments, your Beneficiary will continue to receive the remaining Benefit Payments. You can Surrender your entire Contract Value any time; however, you will receive your Contract Value at the time you request a full Surrender with any applicable charges deducted and not the Benefit Amount or the Benefit Payment amount that you would have received under this rider.
What happens if you change ownership?
If you change the ownership or assign this Contract to someone other than your Spouse after 12 months of electing this rider, we will recalculate the Benefit Amount and the Benefit Payment may be lower in the future. The Benefit Amount will be recalculated to equal the lesser of:
•
The Benefit Amount immediately prior to the ownership change or assignment; or
•
The Contract Value at the time of the ownership change or assignment. The Benefit Payment will then be reset to 7% of the new Benefit Amount.
If the Owner dies and the sole Beneficiary is the Owner’s Spouse, then the surviving Spouse can either become the Contract Owner or elect to receive the standard Death Benefit.
You may not change the named Annuitant. However, if the Annuitant is still living, the Contingent Annuitant may be changed at any time prior to the Annuity Commencement Date by sending us written notice.
Ownership changes may be taxable to you. We recommend that you consult with a tax adviser before making any ownership changes.
Can your Spouse continue your Withdrawal Benefit?
Yes. If the Owner dies and the Beneficiary is the deceased Owner’s Spouse at the time of death, the Spouse may continue the Contract and this rider. This right may be exercised only once during the term of the Contract.
What happens if you annuitize your Contract?
You may elect the annuitization option at any time. If you annuitize your Contract, you may choose this Annuity Payout Option in addition to those Annuity Payout Options offered in the Contract. Under this Annuity Payout Option (called the “PF Annuity Payout Option”), we will pay a fixed dollar amount for a specific number of years (“Payout Period”). If you, the joint Owner or the Annuitant should die before the PF Annuity Payout Period is complete, the remaining payments will be made to the Beneficiary. The PF Annuity Payout Period is determined on the Annuity Calculation Date and it will equal the current Benefit Amount divided by the Benefit Payment. The total amount of the Annuity Payouts under this option will be equal to the Benefit Amount. We may offer other Payout Options. If you, the joint Owner or Annuitant die before the Annuity Calculation Date and all of the Benefit Payments guaranteed by us have not been made, the Beneficiary may elect to take the remaining Benefit Payments by electing the PF Annuity Payout Option or any of the Death Benefit options offered in your Contract. If the Annuitant dies after the Annuity Calculation Date and before all of the Benefit Payments guaranteed by us have been made, the payments will continue to be made to the Beneficiary. If your Contract Value is reduced to zero, you will receive a fixed dollar amount Annuity Payout option until your Benefit Amount is depleted.
This option may not be available if the contract is issued to qualify under Section 401, 403, 408 or 457 of the Internal Revenue Code of 1986, as amended. For such contracts, this option will be available only if the guaranteed payment period is less than the life expectancy of the Annuitant at the time the option becomes effective. Such life expectancy will be computed under the mortality table then in use by Us.
Are there restrictions on how you must invest?
No.


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Are there restrictions on the amount of subsequent Premium Payments?
No; however, your Benefit Amount cannot be more than $5 million. Any activities that would otherwise increase the Benefit Amount above this ceiling will not be included for any benefits under this rider.
Can we aggregate contracts?
We reserve the right to treat all Contracts issued to you by us as one Contract for purposes of this rider. This means that if you purchase two Contracts from us in any twelve month period and elect any optional withdrawal benefit rider on both Contracts, withdrawals from one Contract may be treated as withdrawals from the other Contract.
Other information
This rider may not be appropriate for all investors. Several factors, among others, should be considered:
•
The annual percentage used for determining Benefit Payments is not a fixed rate of return. The Contract Value used to set Benefit Payments is based on the investment performance of your Sub-Accounts.
•
Benefit Payments cannot be carried forward from one year to the next. You will not be warned if you take less than the maximum withdrawals available without triggering recalculation of your Benefit Payments.
•
Annual Surrenders exceeding 7% accelerate depletion of your Benefit Amount even if you use the Automatic Income Program to meet RMD requirements. No reliable assumptions can be made that your payments will continue for any particular number of years.
•
Additional contributions made to your Contract after withdrawals have begun may not restore the previous amount of Benefit Payments, even if the additional contribution restores the Benefit Amount to the previous Benefit Amount.
•
Voluntary or involuntary annuitization will terminate Benefit Payments. Annuity Payout options available subsequent to the Annuity Commencement Date may be less than Benefit Payments.
•
There are no assurances made or implied that automatic Benefit Amount increases will occur and if occurring, will be predictable.
•
When the Contract Value is small in relation to the Benefit Amount, Surrenders may have a significant effect on future Benefit Payments.
•
We do not automatically increase payments under the Automatic Income Program if your Benefit Payment increases. If you are enrolled in our Automatic Income Program to make Benefit Payments and your eligible Benefit Payment increases, please note that you need to request an increase in your Automatic Income Program. We will not individually notify you of this privilege.
•
The 2009 change to the Internal Revenue Code pertaining to Required Minimum Distributions do not change the calculation of your eligible withdrawal amount under the rider if you are enrolled in the Automatic Income Program.
8. Miscellaneous
a. Definitions
Except as provided elsewhere in this prospectus, the following capitalized terms shall have the meaning ascribed below:
Account: Any of the Sub-Accounts or the Fixed Accumulation Feature.
Accumulation Units: If you allocate your Premium Payment to any of the Sub-Accounts, we will convert those Payments into Accumulation Units in the selected Sub-Accounts. Accumulation Units are valued at the end of each Valuation Day and are used to calculate the value of your Contract prior to Annuitization.
Accumulation Unit Value: The daily price of Accumulation Units on any Valuation Day.
Administrative Office: Our overnight mailing address is: Talcott Resolution - Annuity Service Operations, 1338 Indian Mound Drive, Mt. Sterling, KY 40353. Our standard mailing address is Talcott Resolution - Annuity Service Operations, PO Box 14293, Lexington, KY 40512-4293.
Anniversary Value: The value equal to the Contract Value as of a Contract Anniversary, as adjusted for subsequent Premium Payments and partial Surrenders.
Annual Maintenance Fee: An annual $30 charge deducted on a Contract Anniversary or upon full Surrender if the Contract Value at either of those times is less than $50,000. The charge is deducted proportionately from each Sub-Account in which you are invested.
Annual Withdrawal Amount: This is the amount you can Surrender per Contract Year without paying a Contingent Deferred Sales Charge. This amount is non-cumulative, meaning that it cannot be carried over from one year to the next.
Annuitant: The person on whose life the Contract is issued. Except as otherwise provided, the Annuitant may not be changed after your Contract is issued.
Annuity Calculation Date: The date we calculate the first Annuity Payout.
Annuity Commencement Date: The later of the 10th Contract Anniversary or the date the Annuitant reaches age 90.
Annuity Payout: The money we pay out after the Annuity Commencement Date for the duration and frequency you select.


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Annuity Payout Option: Any of the options available for payout after the Annuity Commencement Date or death of the Contract Owner or Annuitant.
Annuity Unit: The unit of measure we use to calculate the value of your Annuity Payouts under a variable dollar amount Annuity Payout Option.
Annuity Unit Value: The daily price of Annuity Units on any Valuation Day.
Beneficiary: The person(s) entitled to receive benefits pursuant to the terms of the Contract upon the death of any Contract Owner and Annuitant as the case may be.
Benefit Amount: The basis used to determine the maximum payout guaranteed under Principal First, Principal First Preferred and Lifetime Income Builder. The Benefit Amount is comprised of net Premium Payments, less any Payment Enhancements, if applicable, and may be subject to periodic step ups when Principal First or Lifetime Income Builder have been elected.
Benefit Payment: The maximum guaranteed amount that may be withdrawn each Contract Year under Principal First, Principal First Preferred or Lifetime Income Builder. A Benefit Payment constitutes a partial Surrender.
Charitable Remainder Trust: An irrevocable trust, where an individual donor makes a gift to the trust, and in return receives an income tax deduction. In addition, the individual donor has the right to receive a percentage of the trust earnings for a specified period of time.
Code: The Internal Revenue Code of 1986, as amended.
Commuted Value: The present value of any remaining guaranteed Annuity Payouts. This amount is calculated using the Assumed Investment Return for variable dollar amount Annuity Payouts and a rate of return determined by us for fixed dollar amount Annuity Payouts.
Contingent Annuitant: The person you may designate to become the Annuitant if the original Annuitant dies before the Annuity Commencement Date. You must name a Contingent Annuitant before the original Annuitant’s death.
Contingent Deferred Sales Charge: The deferred sales charge, if applicable, that may apply when you make a full or partial Surrender.
Contract: The individual Annuity Contract and any endorsements or riders. Group participants and some individuals may receive a certificate rather than a Contract.
Contract Anniversary: The anniversary of the date we issued your Contract. If the Contract Anniversary falls on a Non-Valuation Day, then the Contract Anniversary will be the next Valuation Day.
Contract Owner, Owner or you: The owner or holder of the Contract described in this prospectus including any joint Owner(s). We do not capitalize “you” in the prospectus.
Contract Value: The total value of the Accounts on any Valuation Day.
Contract Year: Any 12 month period between Contract Anniversaries, beginning with the date the Contract was issued.
Covered Life: The governing life or lives used for determining the Lifetime Withdrawal Feature (which may also be referred to as "Lifetime Withdrawal Benefit") under Lifetime Income Foundation, Lifetime Income Builder II, Lifetime Income Builder Selects and Lifetime Income Builder Portfolios.
Death Benefit: The amount payable if the Contract Owner, joint Contract Owner or the Annuitant dies before the Annuity Commencement Date.
Deferred Annuity Commencement Date: The Annuitant’s 100th birthday.
Dollar Cost Averaging: A program that allows you to systematically make transfers between Accounts available in your Contract.
Eligible Withdrawal Year: As used in Lifetime Income Foundation and Lifetime Income Builder II, any Contract Year following the Relevant Covered Life’s 60th birthday.
Financial Intermediary: The broker dealer through whom you purchased your contract or the investment professional who is listed in our administrative systems as the agent of record on your Contract and services your Contract.
Fixed Accumulation Feature: Part of our General Account, where you were able to allocate a portion of your Contract Value. In your Contract, the Fixed Accumulation Feature may be called the Fixed Account. The Fixed Accumulation Feature was not offered in all Contracts and is not available in all states. Effective October 4, 2013, we no longer accept new allocations or Premium Payments to the Fixed Accumulation Feature except for Contracts issued in Massachusetts.
Fund: A registered investment company or a series thereof in which assets of a Sub-Account may be invested. We sometimes call the Funds you select a “Sub-Account”.
General Account: The General Account includes our company assets, including any money you may have invested in the Fixed Accumulation Feature, if available.
In Good Order: Certain transactions require your authorization and completion of requisite forms. Such transactions will not be considered in good order unless received by us in our Administrative Office or via telephone or through an internet transaction.


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Generally, our request for documentation will be considered in good order when we receive all of the requisite information on the form required by us.
Joint Annuitant: The person on whose life Annuity Payouts are based if the Annuitant dies after Annuitization. You may name a Joint Annuitant only if your Annuity Payout Option provides for a survivor. The Joint Annuitant may not be changed.
Lifetime Benefit Payment: The maximum guaranteed amount that can be withdrawn each year pursuant to Lifetime Income Foundation, Lifetime Income Builder II, Lifetime Income Builder Selects or Lifetime Income Builder Portfolios. A Lifetime Benefit Payment constitutes a partial Surrender. Withdrawals taken prior to an Eligible Withdrawal Year (Lifetime Income Foundation and Lifetime Income Builder II) or prior to the Lifetime Income Eligibility Date (Lifetime Income Builder Selects and Lifetime Income Builder Portfolios) are excluded from this definition.
Lifetime Income Eligibility Date: Under Lifetime Income Builder Selects and Lifetime Income Builder Portfolios, the date the relevant Covered Life attains age 59½, at which point Lifetime Benefit Payments can begin.
Lifetime Withdrawal Feature: Under Lifetime Income Builder Selects and Lifetime Income Builder Portfolios, a series of Lifetime Benefit Payments in each Contract Year following the Lifetime Income Eligibility Date.
Maximum Anniversary Value: This is the highest Anniversary Value, adjusted for subsequent Premium Payments and partial Withdrawals, prior to the deceased’s 81st birthday or the date of death, if earlier.
Maximum Contract Value: The greatest of: (i) the Contract Value on the rider issue date, plus Premium Payments received after such date or (ii) the Contract Value on each subsequent Contract Anniversary, excluding the current Contract Anniversary, plus Premium Payments received after such Contract Anniversary date.
Minimum Contract Value: Subject to state variations, the Minimum Contract Value we establish from time to time.
Net Investment Factor: This is used to measure the investment performance of a Sub-Account from one Valuation Day to the next, and is also used to calculate your Annuity Payout amount.
1933 Act: The Securities Act of 1933, as amended.
1934 Act: The Securities Exchange Act of 1934, as amended.
1940 Act: The Investment Company Act of 1940, as amended.
Non-Valuation Day: Any day the New York Stock Exchange is not open for trading.
Payee: The person or party you designate to receive Annuity Payouts.
Payment Base: The amount used to determine the Lifetime Benefit Payments for Lifetime Income Foundation, Lifetime Income Builder II, Lifetime Income Builder Selects and Lifetime Income Builder Portfolios. The Payment Base may be subject to automatic annual Payment Base increases when Lifetime Income Builder II, Lifetime Income Builder Selects or Lifetime Income Builder Portfolios has been elected. In Lifetime Income Builder Selects and Lifetime Income Builder Portfolios, Payment Base includes Payment Enhancements (Plus Contracts only) and front end sales charges (Edge Contracts only) but excludes any Employee Gross-Up. Your initial Payment Base equals your initial Premium Payment except in regard to a company sponsored exchange program. For Plus contracts, your initial Payment Base includes any Payment Enhancement, if applicable; provided, however, Payment Enhancements are not taken into consideration as such for the purposes of Lifetime Income Foundation or Lifetime Income Builder II.
Payment Enhancement: An amount we credit to your Contract Value at the time a Premium Payment is made for “Plus” Contracts only. The amount of a Payment Enhancement is based on the cumulative Premium Payments you make to your Contract.
Premium Payment: Money sent to us to be invested in your Contract (not taking into consideration any applicable front-end charges, Payment Enhancements or Employee Gross Up).
Premium Tax: The amount of tax, if any, charged by federal, state, or other governmental entity on Premium Payments or Contract Values. On any contract subject to a Premium Tax, We may deduct the tax on a pro-rata basis from the Sub-Accounts at the time We pay the tax to the applicable taxing authorities, at the time the contract is surrendered, at the time death benefits are paid or on the Annuity Commencement Date. The Premium Tax rate varies by state or municipality. Currently the maximum rate charged by any state is 3.5% and 1.0% in Puerto Rico.
Qualified Contract: A contract issued to qualify under Sections 401, 403 or 408 of the Internal Revenue Code.
Relevant Covered Life: When the Single Life option is chosen, the Relevant Covered Life will be the older of the Contract Owner(s) if the Contract Owner is a natural person or the Annuitant(s) if the Contract Owner is not a natural person. When the Joint/Spousal Option is chosen, however, the Relevant Covered Life will be the younger of the Contract Owner and his or her Spouse if the Contract Owner is a natural person or the Annuitant if the Contract Owner is not a natural person. As used herein, “attained age” means the chronological age of the Relevant Covered Life as of the most recent Contract Anniversary before requesting any partial Surrender or if a partial Surrender is requested during the first Contract Year, the chronological age of the Relevant Covered Life as of the Contract issuance date.


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Required Minimum Distribution: A federal requirement that individuals age 70½ and older must take a distribution from their tax-qualified retirement account by December 31, each year. For employer sponsored qualified Contracts, the individual must begin taking distributions at the age of 70½ or upon retirement, whichever comes later.
Spouse: A person related to a Contract Owner by marriage pursuant to the Code.
Sub-Account: A division of the Separate Account containing shares of a Fund. There is a Sub-Account for each Fund. We sometimes call the Funds you select your “Sub-Account”.
Sub-Account Value: The value of each Sub-Account on or before the Annuity Calculation Date, which is determined on any day by multiplying the number of Accumulation Units by the Accumulation Unit Value for each Sub-Account.
Surrender: A complete or partial withdrawal from your Contract.
Surrender Value: The amount we pay you if you terminate your Contract before the Annuity Commencement Date. The Surrender Value is equal to the Contract Value minus any applicable charges (subject to rounding).
Threshold: For the purposes of Lifetime Income Foundation, Lifetime Income Builder II, Lifetime Income Builder Selects and Lifetime Income Builder Portfolios, the amount used to determine the change in the Payment Base following a partial Surrender in any Contract Year that is not an Eligible Withdrawal Year (Lifetime Income Foundation and Lifetime Income Builder II) or any Contract Year that is prior to the Lifetime Income Eligibility Date (Lifetime Income Builder Selects and Lifetime Income Builder Portfolios). For the purposes of these optional riders, the percentage used to determine your Threshold amount is 5% (Single Life Election) or 4.5% Joint/Spousal Election) of the Payment Base.
Valuation Day: Every day the New York Stock Exchange is open for trading. Values of the Separate Account are determined as of the close of the New York Stock Exchange. The Exchange generally closes at 4:00 p.m. Eastern Time but may close earlier on certain days and as conditions warrant.
Valuation Period: The time span between the close of trading on the New York Stock Exchange from one Valuation Day to the next.
We, us or our: Talcott Resolution Life and Annuity Insurance Company or Talcott Resolution Life Insurance Company, as the case may be.
Withdrawal Percent: The multiplier used in calculating Lifetime Benefit Payments under Lifetime Income Foundation, Lifetime Income Builder II, Lifetime Income Builder Selects and Lifetime Income Builder Portfolios.
You: The Owner including any joint Owner(s). We do not capitalize “you” or “your” in this prospectus.
b. State Variations
The following section describes modifications to this prospectus due to specific requirements under state insurance laws. There may be additional variations described in your contract (including riders). Unless otherwise noted, variations apply to all forms of Contracts we issue in that particular state. References to certain state’s variations do not imply that we actually offer Contracts in each such state. These variations are subject to change without notice and additional variations may be imposed as specific states approve new riders.
Alabama - Core: We will accept subsequent Premium Payments only during the first Contract Year (if Contract contains the Fixed Account Rider). Outlook: We will accept subsequent Premium Payments only during the first three Contract Years (if Contract contains the Fixed Account Rider).
California - Core, Access, Edge, Plus, Outlook: Any Owner 60 years old or older when purchasing this Contract in California must either elect the Senior Protection Program, or elect to immediately allocate the initial Premium Payments to the other investment options. Under the Senior Protection Program, we will allocate your initial Premium Payment to a money market fund sub-account for the first 35 days your initial Premium Payment is invested. After the 35th day we will automatically allocate your Contract Value according to your most current investment instructions. If you elect the Senior Protection Program you will not be able to participate in any InvestEase (if otherwise available) or Dollar Cost Averaging Program until after the Program has terminated. The Static Asset Allocation Models and certain Automatic Income Programs are not available if you elect the Senior Protection Program. Under the Senior Protection Program any subsequent Premium Payment received during the 35 days after the initial Premium Payment is invested will also be invested in a money market fund sub-account unless you direct otherwise. You may voluntarily terminate your participation in the Senior Protection Program by contacting us in writing or by telephone. You will automatically terminate your participation in the Senior Protection Program if you allocate a subsequent Premium Payment to any other investment option or transfer Account Value from a money market fund sub-account to another investment option. When you terminate your participation in the Senior Protection Program you may reallocate your Contract Value in the Program to other investment options; or we will automatically reallocate your Account Value in the Program according to your original instructions 35 days after your initial Premium Payment was invested. The assignment restrictions on the living benefits and Death Benefits do not apply.
Connecticut - Core: If you elect Lifetime Income Builder Selects rider, our approval is required for any subsequent Premium Payments if the Premium Payments for all deferred variable annuity Contracts issued by us to you equal or exceed $100,000. Access,Edge, Plus, Outlook: If you elect the rider, our approval is required for any subsequent Premium Payments if the Premium Payments for all deferred variable annuity Contracts issued by us to you equal or exceed $100,000. Core, Access,


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Edge, Outlook, Plus : There are no investment restrictions for Principal First Preferred, Lifetime Income Builder II Lifetime Income Foundation. For Connecticut residents that elect Principal First Preferred, Lifetime Income Builder, Lifetime Income Builder II or Lifetime Income Foundation, the contract aggregation provisions do not apply. Plus : The Contingent Deferred Sales Charge is 8%, 8%, 8%, 7%, 6%, 5%, 4%, 3%, 0% for years 1-9. The assignment restrictions on the living benefits and Death Benefits do not apply.
Florida - Core, Access, Plus, Outlook: The limit on Death Benefits imposed when aggregate Premium Payments total $5 million or more does not apply.
Illinois - Core, Access, Edge, Florida : The Fixed Accumulation Feature is not available if you elected Lifetime Income Builder Selects, Lifetime Income Builder Portfolios, Lifetime Income Builder II and Lifetime Income Foundation.
Massachusetts - Core: We will accept subsequent Premium Payments only until the Annuitant’s 63rd birthday or the third Contract Anniversary, whichever is later. The Fixed Accumulation Feature investment restrictions do not apply to investors. Outlook: We will accept subsequent Premium Payments only until the Annuitant’s 66th birthday or the sixth Contract Anniversary, whichever is later. Core, Plus, Outlook: The Nursing Home Waiver is not available.
Minnesota - Core, Access, Edge, Plus, Outlook: MAV Plus is not available and the Maximum Anniversary Value (MAV) Death Benefit is offered instead.
New Jersey - Core, Access, Edge, Plus, Outlook : The investment restrictions and the contract aggregation provisions for Lifetime Income Builder, Lifetime Income Builder II and Lifetime Income Foundation are not applicable. The Fixed Accumulation Feature is not available. The only AIRs available are 3% and 5%. Core, Plus, Outlook : The Nursing Home Waiver is not available. Edge : The Letter of Intent to Submit Anticipated Premium Endorsement is not available.
New York - Core, Plus : The Fixed Accumulation Feature is not available if you elect Lifetime Income Builder, Lifetime Income Builder II, Lifetime Income Foundation, Lifetime Income Builder Selects or Lifetime Income Builder Portfolios. The Nursing Home Waiver is not available. Core, Access, Edge, Plus : We will not recalculate Principal First Preferred of Principal First Benefit Amounts if you change ownership or assign your contract to someone other than your spouse. The Minimum Contract Value is $1,000 after any Surrender. The rider charge for Lifetime Income Builder, Lifetime Income Builder II, Lifetime Income Foundation, Lifetime Income Builder Selects, and Lifetime Income Builder Portfolios is only deducted from the Sub-Accounts. MAV Plus is not available and the Maximum Anniversary Value (MAV) Death Benefit is offered instead. The only AIRs available are 3% and 5%. Edge : The Letter of Intent to Submit Anticipated Premium Endorsement is not available. Core, Access, Edge, Plus, Outlook: There are no investment restrictions for Lifetime Income Builder, Lifetime Income Builder II, Lifetime Income Selects and Lifetime Income Foundation. The assignment restrictions on the living benefits and Death Benefits do not apply. The minimum monthly Annuity Payout is $20.
Ohio - Core, Edge, Plus, Outlook: The Fixed Accumulation Feature is not available.
Oklahoma -Core, Access, Edge, Plus, Outlook: The only AIRs available are 3% and 5%.
Oregon - Core, Plus: We will accept subsequent Premium Payments during the first three Contract Years. Outlook: We will accept subsequent Premium Payments during the first six Contract Years. Core, Access, Edge, Plus, Outlook: There are no investment restrictions for Lifetime Income Builder. You may not choose a fixed dollar amount Annuity Payout. The Life Annuity with a Cash Refund Annuity Payout Option is not available for Oregon residents and the only AIRs available are 3% and 5%.
Pennsylvania - Core, Plus, Outlook: The Nursing Home Waiver minimum confinement period is changed from 180 days to 90 days. Pennsylvania residents may not choose a fixed dollar amount Annuity Payout or the Life Annuity with a Cash Refund Annuity Payout Option. Plus: The Contingent Deferred Sales Charge is 8%, 8%, 8%, 7%, 6%, 5%, 4%, 3%, 0% for years 1-9.
South Carolina - Edge: The Letter of Intent to Submit Anticipated Premium Endorsement is not available.
Texas - Edge: The Letter of Intent to Submit Anticipated Premium Endorsement is not available.
Washington - Core, Access, Edge, Plus, Outlook : MAV Plus is not available and Maximum Anniversary Value (MAV) Death Benefit is offered instead. The rider charge for Lifetime Income Builder, Lifetime Income Builder II, Lifetime Income Foundation, Lifetime Income Builder Selects, and Lifetime Income Builder Portfolios is only deducted from the Sub-Accounts. Core, Edge, Plus, Outlook : The Fixed Accumulation is not available if you elected Lifetime Income Builder, Lifetime Income Builder II, Lifetime Income Foundation, Lifetime Income Builder Selects, and Lifetime Income Builder Portfolios. Edge : The Letter of Intent to Submit Anticipated Premium Endorsement is not available.
c. Financial Statements
You can find financial statements for us and the Separate Account in the Statement of Additional Information. To receive a copy of the Statement of Additional Information free of charge, call your investment professional or complete the form at the end of this prospectus and mail the form to us at the address indicated on the form.
d. More Information
Ownership Changes - Except as prohibited by state law, we reserve the right to approve all ownership changes, including any assignment of your Contract (or any benefits) to others or the pledging of your Contract as collateral. Certain approved changes in ownership may cause a re-calculation of the benefits subject to applicable state law. Generally, we will not re-calculate the


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benefits under your Contract so long as the change in ownership does not affect the Owner and does not result in a change in the tax identification number under the Contract. Changes in ownership can also adversely affect your Death Benefits and optional withdrawal benefits. If you elect the Deferral Option and if your Spouse continues the Contract after the original Annuity Commencement Date, the terms of the Deferral Option will remain in force and will supersede any conflicting terms set forth above and the Deferred Annuity Commencement Date will be adjusted to the new Annuitant’s, if any, 100th birthday.
If the Owner dies and the sole Beneficiary is the Owner’s Spouse, then the surviving Spouse can either become the Contract Owner or elect to receive the applicable Death Benefit. We will adjust the Contract Value in these circumstances to equal the amount that we would have paid as the Death Benefit payment, had the Spouse elected to receive the applicable Death Benefit as a lump sum payment. This privilege will only apply once for each Contract.
You may not change the named Annuitant. However, if the Annuitant is still living, the Contingent Annuitant may be changed at any time prior to the Annuity Commencement Date by sending us written notice.
Assignment - A non-qualified Contract may be assigned. We must be properly notified in writing of an assignment. Any Annuity Payouts or Surrenders requested or scheduled before we record an assignment will be made according to the instructions we have on record. We are not responsible for determining the validity of an assignment. Assigning a non-qualified Contract may require the payment of income taxes and certain penalty taxes. A qualified Contract may not be transferred or otherwise assigned (whether directly or used as collateral for a loan), unless allowed by applicable law and approved by us in writing. We can withhold our consent for any reason. We are not obligated to process any request for approval within any particular time frame. Please consult a qualified tax adviser before assigning your Contract.
Speculative Investing - Do not purchase this Contract if you plan to use it, or any of its riders, for speculation, arbitrage, viatication or any other type of collective investment scheme. When you purchased this Contract you represented and warranted that you would not use this Contract, or any of its riders, for speculation, arbitrage, viatication or any other type of collective investment scheme.
Contract Modification - We may modify the Contract, but no modification will affect the amount or term of any Contract unless a modification is required to conform the Contract to applicable federal or state law. No modification will affect the method by which Contract Values are determined.
Medicaid Benefits - Medicaid is a program that covers most medical costs, including nursing home and home care for the elderly and certain persons with disabilities. To qualify, individuals must meet both income and resource tests. Subject to state law, income tests measure whether earned and unearned income such as benefit payments exceeds predetermined monthly caps. Resource tests look to the value of countable assets such as this Contract. Medicaid also allows the costs of benefits such as nursing home care, home and community based services, and related hospital prescription drug services to be recaptured from a recipient’s estate after their death (or if the recipient has a surviving Spouse, the recapture is suspended until after the death of the recipient’s surviving Spouse).
Medicaid estate planning may be important to people who are concerned about long term care costs or the adequacy of their private LTC insurance. Benefits associated with this variable annuity may have an impact on your Medicaid eligibility and the assets considered for Medicaid benefits.
Certain asset and/or trust transfers (or a “spend down” of assets) made to become eligible for Medicaid may trigger periods of potentially unlimited ineligibility and can be considered fraud. Each state examines the financial history of a person to determine whether he or she transferred funds at below market value in order to qualify for Medicaid. These look-back periods are currently 36-months for asset transfers and 60-months for Medicaid exempt trust transfers.
Ownership interests or beneficiary status under this variable annuity can render you or your loved ones ineligible for Medicaid. This may be particularly troubling if your Spouse or Beneficiary is already receiving Medicaid benefits at the time of transfer or receipt of Death Benefits. As certain ownership changes are either impermissible or are subject to benefit resetting rules, you may want to carefully consider how you structure the ownership and beneficiary status of your Contract.
This discussion is intended to provide a very general overview and does not constitute legal advice or in any way suggest that you circumvent these rules. You should seek advice from a competent elder law attorney to make informed decisions about how this variable annuity may affect your plans.
e. Legal Proceedings
There continues to be significant federal and state regulatory activity relating to financial services companies. Like other insurance companies, we are involved in lawsuits, arbitrations, and regulatory/legal proceedings. Certain of the lawsuits and legal actions the Company is involved in assert claims for substantial amounts. While it is not possible to predict with certainty the ultimate outcome of any pending or future case, legal proceeding or regulatory action, we do not expect the ultimate result of any of these actions to result in a material adverse effect on the Company or its Separate Accounts. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation, an adverse outcome in certain matters could, from time to time, have a material adverse effect on the Company’s results of operations or cash flows in particular quarterly or annual periods.


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f. How Contracts Were Sold
We have entered into a distribution agreement with our affiliate Talcott Resolution Distribution Company, Inc. (“TDC”) under which TDC serves as the principal underwriter for the Contracts. TDC is registered with the Securities and Exchange Commission under the 1934 Act as a broker-dealer and is a member of the Financial Industry Regulatory Authority (FINRA). The principal business address of TDC is the same as ours.
TDC has entered into selling agreements with affiliated and unaffiliated broker-dealers, and financial institutions (“Financial Intermediaries”) for the sale of the Contracts. We pay compensation to TDC for sales of the Contracts by Financial Intermediaries. TDC, in its role as principal underwriter, did not retain any underwriting commissions for the fiscal year ended December 31, 2017. Contracts were sold by individuals who were appointed by us as insurance agents and who were registered representatives of Financial Intermediaries.
Core and Edge Contracts may have been sold directly to the following individuals free of any commission (“Employee Gross-Up” on Core and no front-end sales charge on Edge): 1) current or retired officers, directors, trustees and employees (and their families) of our ultimate corporate parent; and 2) employees and investment professionals (and their families) of Financial Intermediaries. If applicable, we may have credited the Core Contract with a credit of 5.0% of the initial Premium Payment and each subsequent Premium Payment, if any. This additional percentage of Premium Payment in no way affects current or future charges, rights, benefits or account values of other Contract Owners.
We list below types of arrangements that helped to incentivize sales people to sell our suite of variable annuities. Not all arrangements necessarily affected each variable annuity. These types of arrangements could be viewed as creating conflicts of interest.
Financial Intermediaries receive commissions (described below under “Commissions”). Certain selected Financial Intermediaries also receive additional compensation (described below under “Additional Payments”). All or a portion of the payments we make to Financial Intermediaries may be passed on to investment professionals according to a Financial Intermediaries’ internal compensation practices.
Affiliated broker-dealers also employed individuals called “wholesalers” in the sales process. Wholesalers typically receive commissions based on the type of Contract or optional benefits sold. Commissions are based on a specified amount of Premium Payments or Contract Value.
Commissions
Up front commissions paid to Financial Intermediaries generally range from 1% to up to 7% of each Premium Payment you pay for your Contract. Trail commissions (fees paid for customers that maintain their Contracts generally for more than 1 year) range up to 1.20% of your Contract Value. We pay different commissions based on the Contract variation. We may pay a lower commission for sales to people over age 80.
Commission arrangements vary from one Financial Intermediary to another. We are not involved in determining your investment professional’s compensation. Under certain circumstances, your investment professional may be required to return all or a portion of the commissions paid.
Check with your investment professional to verify whether your account is a brokerage or an advisory account. Your interests may differ from ours and your investment professional (or the Financial Intermediary with which they are associated). Please ask questions to make sure you understand your rights and any potential conflicts of interest. If you are an advisory client, your investment professional (or the Financial Intermediary with which they are associated) can be paid both by you and by us based on what you buy. Therefore, profits, and your investment professional’s (or their Financial Intermediary’s) compensation, may vary by product and over time. Contact an appropriate person at your Financial Intermediary with whom you can discuss these differences.
Additional Payments
Subject to FINRA Financial Intermediary and insurance rules, we also pay the following types of fees to among other things encourage the sale of this Contract and/or to provide inforce Contract Owner Support. These additional payments could create an incentive for your investment professional, and the Financial Intermediary with which they are associated, to recommend products that pay them more than others, which may not necessarily be to your benefit. In addition, some Financial Intermediaries may make a profit from fees received for inforce Contract Owner support services.
Additional
Payment Type
 What it’s used for
Access
Access to investment professionals and/or Financial Intermediaries such as one-on-one wholesaler visits or attendance at national sales meetings or similar events.
Gifts & Entertainment
Occasional meals and entertainment, tickets to sporting events and other gifts.


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Marketing
Joint marketing campaigns and/or Financial Intermediary event advertising/participation; sponsorship of Financial Intermediary sales contests and/or promotions in which participants (including investment professionals) receive prizes such as travel awards, merchandise and recognition; client generation expenses.
Marketing Expense Allowances
Pay Fund related parties for wholesaler support, training and marketing activities for certain Funds.
Inforce Contract Owner
Support
Support for such things as providing hardware and software, operational and systems integration, links to our website from a Financial Intermediary’s websites; shareholder services.
Training
Educational (due diligence), sales or training seminars, conferences and programs, sales and service desk training.
Volume
Pay for the overall volume of their sales or the amount of money investing in our products.
As of December 31, 2017, we have entered into ongoing contractual arrangements to make Additional Payments to the following Financial Intermediaries for our entire suite of variable annuities:
AIG Advisors Group, Inc., (FSC Securities Corporation, Royal Alliance Assoc., Inc., Sagepoint Financial), Cambridge Investment Research Inc., Cetera Financial Group (Cetera Financial Specialists, LLC, Cetera Investment Services, LLC, Cetera Advisors, LLC, Cetera Advisor Networks, LLC), CCO Investment Services Corp., Citigroup Global Markets, Inc., Commonwealth Financial Network, Crown Capital Securities, LLP, Edward D. Jones & Co., LLP, First Allied Securities, Inc., First Tennessee Brokerage Inc., H.D. Vest Investment Services, Huntington Investment Company, ING Financial Partners, LPL Financial Corporation, Merrill Lynch Pierce Fenner & Smith, Morgan Stanley Smith Barney, LLC, (various divisions and affiliates), Raymond James & Associates, Inc., Raymond James Financial Services, Robert W. Baird & Co. Inc., Thurston Springer Miller, UBS Financial Services, Inc., Wells Fargo Advisors LLC (various divisions), Woodbury Financial Services, Inc.
Inclusion on this list does not imply that these sums necessarily constitute “special cash compensation” as defined by FINRA Conduct Rule 2830(l)(4). We will endeavor to update this listing annually and interim arrangements may not be reflected. We assume no duty to notify any investor whether their investment professional is or should be included in any such listing.
As of December 31, 2017, we have entered into arrangements to pay Marketing Expense Allowances to the following Fund Companies (or affiliated parties) for our entire suite of variable annuities: American Funds Distributors & Capital Research and Management Company & Oppenheimer Variable Account Funds & Oppenheimer Funds Distributor, Inc. Marketing Expense Allowances may vary based on the form of Contract sold and the age of the purchaser. We will endeavor to update this listing annually and interim arrangements may not be reflected. We assume no duty to notify you whether any Financial Intermediary is or should be included in any such listing. You are encouraged to review the prospectus for each Fund for any other compensation arrangements pertaining to the distribution of Fund shares.
For the fiscal year ended December 31, 2017, Additional Payments did not in the aggregate exceed approximately $15.1 million (excluding corporate-sponsorship related perquisites and Marketing Expense Allowances) or approximately 0.04% of average total individual variable annuity assets. Marketing Expense Allowances for this period did not exceed $16,000.


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Table of Contents to Statement of Additional Information
General Information
Safekeeping of Assets
Experts
Non-Participating
Misstatement of Age or Sex
Purchase of Securities Being Offered
Principal Underwriter
Operational Risks
Performance Related Information
Total Return for all Sub-Accounts
Yield for Sub-Accounts
Money Market Sub-Accounts
Additional Materials
Performance Comparisons
Accumulation Unit Values
Financial Statement



APP TAX-1
 
 
 

Appendix Tax
Federal Tax Considerations
A. Introduction
The following summary of tax rules does not provide or constitute any tax advice. It provides only a general discussion of certain of the expected federal income tax consequences with respect to amounts contributed to, invested in or received from a Contract, based on our understanding of the existing provisions of the Internal Revenue Code (“Code”), Treasury Regulations thereunder, and public interpretations thereof by the IRS (e.g., Revenue Rulings, Revenue Procedures or Notices) or by published court decisions. This summary discusses only certain federal income tax consequences to United States Persons, and does not discuss state, local or foreign tax consequences. The term United States Persons means citizens or residents of the United States, domestic corporations, domestic partnerships, trust or estates that are subject to United States federal income tax, regardless of the source of their income. See “Nonresident Aliens and Foreign Entities” below regarding annuity purchases by, or payments to, non-U.S. Persons. Pursuant to IRS Circular 230, you are hereby notified of the following: The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance products. You should seek advice based on your particular circumstances from an independent tax advisor. This prospectus is not intended to provide tax, accounting or legal advice. Please consult your tax accountant or attorney prior to finalizing or implementing any tax or legal strategy or for any tax, account or legal advice concerning your situation.
This summary has been prepared by us after consultation with tax counsel, but no opinion of tax counsel has been obtained. We do not make any guarantee or representation regarding any tax status (e.g., federal, state, local or foreign) of any Contract or any transaction involving a Contract. In addition, there is always a possibility that the tax treatment of an annuity contract could change by legislation or other means (such as regulations, rulings or judicial decisions). Moreover, it is always possible that any such change in tax treatment could be made retroactive (that is, made effective prior to the date of the change). Accordingly, you should consult a qualified tax adviser for complete information and advice before purchasing a Contract.
In addition, although this discussion addresses certain tax consequences if you use the Contract in various arrangements, including Charitable Remainder Trusts, tax-qualified retirement arrangements, deferred compensation plans, split-dollar insurance arrangements, or other employee benefit arrangements, this discussion is not exhaustive. The tax consequences of any such arrangement may vary depending on the particular facts and circumstances of each individual arrangement and whether the arrangement satisfies certain tax qualification or classification requirements. In addition, the tax rules affecting such an arrangement may have changed recently, e.g., by legislation or regulations that affect compensatory or employee benefit arrangements. Therefore, if you are contemplating the use of a Contract in any arrangement the value of which to you depends in part on its tax consequences, you should consult a qualified tax adviser regarding the tax treatment of the proposed arrangement and of any Contract used in it.
As used in the following sections addressing “Federal Tax Considerations,” the term “spouse” means the person to whom you are legally married, as determined under federal tax law. This may include opposite or same-sex spouses, but does not include those in domestic partnerships or civil unions which are not recognized as married for federal tax purposes. You are encouraged to consult with an accountant, lawyer or other qualified tax advisor about your own situation. Although some sections below discuss certain tax considerations in connection with contract loans, this is provided as general information only.  Please refer to your contract to determine if your contract contains a loan provision.
The federal, as well as state and local, tax laws and regulations require the Company to report certain transactions with respect to your contract (such as an exchange of or a distribution from the contract) to the Internal Revenue Service and state and local tax authorities, and generally to provide you with a copy of what was reported. This copy is not intended to supplant your own records. It is your responsibility to ensure that what you report to the Internal Revenue Service and other relevant taxing authorities on your income tax returns is accurate based on your books and records. you should review whatever is reported to the taxing authorities by the Company against your own records, and in consultation with your own tax advisor, and should notify the Company if you find any discrepancies in case corrections have to be made.
THE DISCUSSION SET FORTH BELOW IS INCLUDED FOR GENERAL PURPOSES ONLY. SPECIAL TAX RULES MAY APPLY WITH RESPECT TO CERTAIN SITUATIONS THAT ARE NOT DISCUSSED HEREIN. EACH POTENTIAL PURCHASER OF A CONTRACT IS ADVISED TO CONSULT WITH A QUALIFIED TAX ADVISER AS TO THE CONSEQUENCES OF ANY AMOUNTS INVESTED IN A CONTRACT UNDER APPLICABLE FEDERAL, STATE, LOCAL OR FOREIGN TAX LAW.
B. Taxation of the Company and the Separate Account
The Separate Account is taxed as part of the Company which is taxed as a life insurance company under Subchapter L of Chapter 1 of the Code. Accordingly, the Separate Account will not be taxed as a “regulated investment company” under Subchapter M of Chapter 1 of the Code. Investment income and any realized capital gains on assets of the Separate Account are reinvested and taken into account in determining the value of the Accumulation and Annuity Units. As a result, such investment income and realized capital gains are automatically applied to increase reserves under the Contract.


APP TAX-2
 
 
 

Currently, no taxes are due on interest, dividends and short-term or long-term capital gain earned by the Separate Account with respect to the Contracts. The Company is entitled to certain tax benefits related to the investment of company assets, including assets of the Separate Account. These tax benefits, which may include the foreign tax credit and the corporate dividends received deduction, are not passed back to you since the Company is the owner of the assets from which the tax benefits are derived.
C. Taxation of Annuities — General Provisions Affecting Contracts Not Held in Tax-Qualified Retirement Plans
Section 72 of the Code governs the taxation of annuities in general.
1. Non-Natural Persons as Owners
Pursuant to Code Section 72(u), an annuity contract held by a taxpayer other than a natural person generally is not treated as an annuity contract under the Code. Instead, such a non-natural Contract Owner generally could be required to include in gross income currently for each taxable year the excess of (a) the sum of the Contract Value as of the close of the taxable year and all previous distributions under the Contract over (b) the sum of net premiums paid for the taxable year and any prior taxable year and the amount includable in gross income for any prior taxable year with respect to the Contract under Section 72(u). However, Section 72(u) does not apply to:
•
A contract the nominal owner of which is a non-natural person but the beneficial owner of which is a natural person (e.g., where the non-natural owner holds the contract as an agent for the natural person),
•
A contract acquired by the estate of a decedent by reason of such decedent’s death,
•
Certain contracts acquired with respect to tax-qualified retirement arrangements,
•
Certain contracts held in structured settlement arrangements that may qualify under Code Section 130, or
•
A single premium immediate annuity contract under Code Section 72(u)(4), which provides for substantially equal periodic payments and an annuity starting date that is no later than 1 year from the date of the contract’s purchase.
A non-natural Contract Owner that is a tax-exempt entity for federal tax purposes (e.g., a tax-qualified retirement trust or a Charitable Remainder Trust) generally would not be subject to federal income tax as a result of such current gross income under Code Section 72(u). However, such a tax-exempt entity, or any annuity contract that it holds, may need to satisfy certain tax requirements in order to maintain its qualification for such favorable tax treatment. See, e.g., IRS Tech. Adv. Memo. 9825001 for certain Charitable Remainder Trusts.
Pursuant to Code Section 72(s), if the Contract Owner is a non-natural person, the primary annuitant is treated as the “holder” in applying the required distribution rules described below. These rules require that certain distributions be made upon the death of a “holder.” In addition, for a non-natural owner, a change in the primary annuitant is treated as the death of the “holder.” However, the provisions of Code Section 72(s) do not apply to certain contracts held in tax-qualified retirement arrangements or structured settlement arrangements.
For tax years beginning after December 31, 2012, estates and trusts with gross income from annuities may be subject to an additional tax (Unearned Income Medicare Contribution) of 3.8%, depending upon the amount of the estate’s or trust’s adjusted gross income for the taxable year.
2. Other Contract Owners (Natural Persons).
A Contract Owner is not taxed on increases in the value of the Contract until an amount is received or deemed received, e.g., in the form of a lump sum payment (full or partial value of a Contract) or as Annuity payments under the settlement option elected.
The provisions of Section 72 of the Code concerning distributions are summarized briefly below. Also summarized are special rules affecting distributions from Contracts obtained in a tax-free exchange for other annuity contracts or life insurance contracts which were purchased prior to August 14, 1982. For tax years beginning after December 31, 2012, individuals with gross income from annuities may be subject to an additional tax (Unearned Income Medicare Contribution) of 3.8%, depending upon the amount of the individual’s modified adjusted gross income for the taxable year.
a. Amounts Received as an Annuity
Contract payments made periodically at regular intervals over a period of more than one full year, such that the total amount payable is determinable from the start (“amounts received as an annuity”) are includable in gross income to the extent the payments exceed the amount determined by the application of the ratio of the allocable “investment in the contract” to the total amount of the payments to be made after the start of the payments (the “exclusion ratio”) under Section 72 of the Code. Total premium payments less amounts received which were not includable in gross income equal the “investment in the contract.” The start of the payments may be the Annuity Commencement Date, or may be an annuity starting date assigned should any portion less than the full Contract be converted to periodic payments from the Contract (Annuity Payouts).
i.
When the total of amounts excluded from income by application of the exclusion ratio is equal to the allocated investment in the contract for the Annuity Payout, any additional payments (including surrenders) will be entirely includable in gross income.


APP TAX-3
 
 
 

ii.
To the extent that the value of the Contract (ignoring any surrender charges except on a full surrender) exceeds the “investment in the contract,” such excess constitutes the “income on the contract”. It is unclear what value should be used in determining the “income on the contract.” We believe that the “income on the contract” does not include some measure of the value of certain future cash-value type benefits, but the IRS could take a contrary position and include such value in determining the “income on the contract”.
iii.
Under Section 72(a)(2) of the Code, if any amount is received as an annuity (i.e., as one of a series of periodic payments at regular intervals over more than one full year) for a period of 10 or more years, or during one or more lives, under any portion of an annuity, endowment, or life insurance contract, then that portion of the contract shall be treated as a separate contract with its own annuity starting date (otherwise referred to as a partial annuitization of the contract). This assigned annuity starting date for the new separate contract can be different from the original Annuity Commencement Date for the Contract. Also, for purposes of applying the exclusion ratio for the amounts received under the partial annuitization, the investment in the contract before receiving any such amounts shall be allocated pro rata between the portion of the Contract from which such amounts are received as an annuity and the portion of the Contract from which amounts are not received as an annuity. These provisions apply to payments received in taxable years beginning after December 31, 2010.
b. Amounts Not Received as an Annuity
i.
To the extent that the “cash value” of the Contract (ignoring any surrender charges except on a full surrender) exceeds the “investment in the contract,” such excess constitutes the “income on the contract.”
ii.
Any amount received or deemed received prior to the Annuity Commencement Date (e.g., upon a withdrawal or partial surrender), which is non-periodic and not part of a partial annuitization, is deemed to come first from any such “income on the contract” and then from “investment in the contract,” and for these purposes such “income on the contract” is computed by reference to the aggregation rule described in subparagraph 2.c. below. As a result, any such amount received or deemed received (1) shall be includable in gross income to the extent that such amount does not exceed any such “income on the contract,” and (2) shall not be includable in gross income to the extent that such amount does exceed any such “income on the contract.” If at the time that any amount is received or deemed received there is no “income on the contract” (e.g., because the gross value of the Contract does not exceed the “investment in the contract,” and no aggregation rule applies), then such amount received or deemed received will not be includable in gross income, and will simply reduce the “investment in the contract.”
iii.
Generally, non-periodic amounts received or deemed received after the Annuity Commencement Date (or after the assigned annuity starting date for a partial annuitization) are not entitled to any exclusion ratio and shall be fully includable in gross income. However, upon a full surrender after such date, only the excess of the amount received (after any surrender charge) over the remaining “investment in the contract” shall be includable in gross income (except to the extent that the aggregation rule referred to in the next subparagraph 2.c. may apply).
iv.
The receipt of any amount as a loan under the Contract or the assignment or pledge of any portion of the value of the Contract shall be treated as an amount received for purposes of this subparagraph 2.b. and the previous subparagraph 2.a.
v.
In general, the transfer of the Contract, without full and adequate consideration, will be treated as an amount received for purposes of this subparagraph 2.b. and the previous subparagraph 2.a. This transfer rule does not apply, however, to certain transfers of property between Spouses or incident to divorce.
vi.
In general, any amount actually received under the Contract as a Death Benefit, including an optional Death Benefit, if any, will be treated as an amount received for purposes of this subparagraph 2.b. and the previous subparagraph 2.
c. Aggregation of Two or More Annuity Contracts.
Contracts issued after October 21, 1988 by the same insurer (or affiliated insurer) to the same owner within the same calendar year (other than certain contracts held in connection with tax-qualified retirement arrangements) will be aggregated and treated as one annuity contract for the purpose of determining the taxation of distributions prior to the Annuity Commencement Date. An annuity contract received in a tax-free exchange for another annuity contract or life insurance contract may be treated as a new contract for this purpose. We believe that for any Contracts subject to such aggregation, the values under the Contracts and the investment in the contracts will be added together to determine the taxation under subparagraph 2.a., above, of amounts received or deemed received prior to the Annuity Commencement Date. Withdrawals will be treated first as withdrawals of income until all of the income from all such Contracts is withdrawn. In addition, the Treasury Department has specific authority under the aggregation rules in Code Section 72(e)(12) to issue regulations to prevent the avoidance of the income-out-first rules for non-periodic distributions through the serial purchase of annuity contracts or otherwise. As of the date of this prospectus, there are no regulations interpreting these aggregation provisions.
d. 10% Penalty Tax — Applicable to Certain Withdrawals and Annuity Payments.


APP TAX-4
 
 
 

i.
If any amount is received or deemed received on the Contract (before or after the Annuity Commencement Date), the Code applies a penalty tax equal to ten percent of the portion of the amount includable in gross income, unless an exception applies.
ii.
The 10% penalty tax will not apply to the following distributions:
1.
Distributions made on or after the date the recipient has attained the age of 59½.
2.
Distributions made on or after the death of the holder or, where the holder is not an individual, the death of the primary annuitant.
3.
Distributions attributable to a recipient becoming disabled.
4.
A distribution that is part of a scheduled series of substantially equal periodic payments (not less frequently than annually) for the life (or life expectancy) of the recipient (or the joint lives or life expectancies of the recipient and the recipient’s designated Beneficiary).
5.
Distributions made under certain annuities issued in connection with structured settlement agreements.
6.
Distributions of amounts which are allocable to the “investment in the contract” prior to August 14, 1982 (see next subparagraph e.).
7.
Distributions purchased by an employer upon termination of certain qualified plans and held by the employer until the employee separates from service.
If the taxpayer avoids this 10% penalty tax by qualifying for the substantially equal periodic payments exception and later such series of payments is modified (other than by death or disability), the 10% penalty tax will be applied retroactively to all the prior periodic payments (i.e., penalty tax plus interest thereon), unless such modification is made after both (a) the taxpayer has reached age 59½ and (b) 5 years have elapsed since the first of these periodic payments.
e. Special Provisions Affecting Contracts Obtained Through a Tax-Free Exchange of Other Annuity or Life Insurance Contracts Purchased Prior to August 14, 1982.
If the Contract was obtained by a tax-free exchange of a life insurance or annuity Contract purchased prior to August 14, 1982, then any amount received or deemed received prior to the Annuity Commencement Date shall be deemed to come (1) first from the amount of the “investment in the contract” prior to August 14, 1982 (“pre-8/14/82 investment”) carried over from the prior Contract, (2) then from the portion of the “income on the contract” (carried over to, as well as accumulating in, the successor Contract) that is attributable to such pre-8/14/82 investment, (3) then from the remaining “income on the contract” and (4) last from the remaining “investment in the contract.” As a result, to the extent that such amount received or deemed received does not exceed such pre-8/14/82 investment, such amount is not includable in gross income. In addition, to the extent that such amount received or deemed received does not exceed the sum of (a) such pre-8/14/82 investment and (b) the “income on the contract” attributable thereto, such amount is not subject to the 10% penalty tax. In all other respects, amounts received or deemed received from such post-exchange Contracts are generally subject to the rules described in this subparagraph e.
f. Required Distributions
i.
Death of Contract Owner or Primary Annuitant
Subject to the alternative election or Spouse beneficiary provisions in ii or iii below:
1.
If any Contract Owner dies on or after the Annuity Commencement Date and before the entire interest in the Contract has been distributed, the remaining portion of such interest shall be distributed at least as rapidly as under the method of distribution being used as of the date of such death;
2.
If any Contract Owner dies before the Annuity Commencement Date, the entire interest in the Contract shall be distributed within 5 years after such death; and
3.
If the Contract Owner is not an individual, then for purposes of 1. or 2. above, the primary annuitant under the Contract shall be treated as the Contract Owner, and any change in the primary annuitant shall be treated as the death of the Contract Owner. The primary annuitant is the individual, the events in the life of whom are of primary importance in affecting the timing or amount of the payout under the Contract.
ii.
Alternative Election to Satisfy Distribution Requirements
If any portion of the interest of a Contract Owner described in i. above is payable to or for the benefit of a designated beneficiary, such beneficiary may elect to have the portion distributed over a period that does not extend beyond the life or life expectancy of the beneficiary. Such distributions must begin within a year of the Contract Owner’s death.
iii.
Spouse Beneficiary
If any portion of the interest of a Contract Owner is payable to or for the benefit of his or her Spouse, and the Annuitant or Contingent Annuitant is living, such Spouse shall be treated as the Contract Owner of such portion for purposes of section i. above. This Spousal Contract continuation shall apply only once for this Contract.
iv.
Civil Union or Domestic Partner


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Upon the death of the Contract Owner prior to the Annuity Commencement Date, if the designated beneficiary is the surviving civil union or domestic partner of the Contract Owner, rather than the spouse of the Contract Owner, then such designated beneficiary is not permitted to continue the Contract as the succeeding Contract Owner. A designated beneficiary who is a same sex spouse will be permitted to continue the Contract as the succeeding Contract Owner.
g. Addition of Rider or Material Change.
The addition of a rider to the Contract, or a material change in the Contract’s provisions, could cause it to be considered newly issued or entered into for tax purposes, and thus could cause the Contract to lose certain grandfathered tax status. Please contact your tax adviser for more information.
h. Partial Exchanges.
The owner of an annuity contract can direct its insurer to transfer a portion of the contract's cash value directly to another annuity contract (issued by the same insurer or by a different insurer), and such a direct transfer can qualify for tax-free exchange treatment under Code Section 1035 (a "partial exchange"). The IRS in Revenue Procedure 2011-38, indicated that a partial exchange made on or after October 24, 2011 will be treated as a tax-free exchange under Code Section 1035 if there is no distribution from or surrender of, either contract involved in the exchange within 180 days of such exchange. Amounts received as annuity payments for a period of at least 10 years on one or more lives will not be treated as distributions for this purpose. If a transfer does not meet the 180-day test, the IRS will apply general tax rules to determine the substance and treatment of the transfer.
We advise you to consult with a qualified tax adviser as to the potential tax consequences before attempting any partial exchanges.
3.
Diversification Requirements.
The Code requires that investments supporting your Contract be adequately diversified. Code Section 817(h) provides that a variable annuity contract will not be treated as an annuity contract for any period during which the investments made by the separate account or Fund are not adequately diversified. If a contract is not treated as an annuity contract, the contract owner will be subject to income tax on annual increases in cash value.
The Treasury Department’s diversification regulations under Code Section 817(h) require, among other things, that:
•
no more than 55% of the value of the total assets of the segregated asset account underlying a variable contract is represented by any one investment,
•
no more than 70% is represented by any two investments,
•
no more than 80% is represented by any three investments and
•
no more than 90% is represented by any four investments.
In determining whether the diversification standards are met, all securities of the same issuer, all interests in the same real property project, and all interests in the same commodity are each treated as a single investment. In the case of government securities, each government agency or instrumentality is treated as a separate issuer.
A separate account must be in compliance with the diversification standards on the last day of each calendar quarter or within 30 days after the quarter ends. If an insurance company inadvertently fails to meet the diversification requirements, the company may still comply within a reasonable period and avoid the taxation of contract income on an ongoing basis. However, either the insurer or the contract owner must agree to make adjustments or pay such amounts as may be required by the IRS for the period during which the diversification requirements were not met.
Fund shares may also be sold to tax-qualified plans pursuant to an exemptive order and applicable tax laws. If Fund shares are sold to non-qualified plans, or to tax-qualified plans that later lose their tax-qualified status, the affected Funds may fail the diversification requirements of Code Section 817(h), which could have adverse tax consequences for Contract Owners with premiums allocated to affected Funds. In order to prevent a Fund diversification failure from such an occurrence, the Company obtained a private letter ruling (“PLR”) from the IRS. As long as the Funds comply with certain terms and conditions contained in the PLR, Fund diversification will not be prevented if purported tax-qualified plans invest in the Funds. The Company and the Funds will monitor the Funds’ compliance with the terms and conditions contained in the PLR.
4. Tax Ownership of the Assets in the Separate Account.
In order for a variable annuity contract to qualify for tax income deferral, assets in the separate account supporting the contract must be considered to be owned by the insurance company, and not by the contract owner, for tax purposes. The IRS has stated in published rulings that a variable contract owner will be considered the “owner” of separate account assets for income tax purposes if the contract owner possesses sufficient incidents of ownership in those assets, such as the ability to exercise investment control over the assets. In circumstances where the variable contract owner is treated as the “tax owner” of certain separate account assets, income and gain from such assets would be includable in the variable contract owner’s gross income. The Treasury Department indicated in 1986 that it would provide guidance on the extent to which contract owners may direct their investments to particular Sub-Accounts without being treated as tax owners of the underlying shares. Although no such


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regulations have been issued to date, the IRS has issued a number of rulings that indicate that this issue remains subject to a facts and circumstances test for both variable annuity and life insurance contracts.
Rev. Rul. 2003-92, amplified by Rev. Rul. 2007-7, indicates that, where interests in a partnership offered in an insurer’s separate account are not available exclusively through the purchase of a variable insurance contract (e.g., where such interests can be purchased directly by the general public or others without going through such a variable contract), such “public availability” means that such interests should be treated as owned directly by the contract owner (and not by the insurer) for tax purposes, as if such contract owner had chosen instead to purchase such interests directly (without going through the variable contract). None of the shares or other interests in the fund choices offered in our Separate Account for your Contract are available for purchase except through an insurer’s variable contracts or by other permitted entities.
Rev. Rul. 2003-91 indicates that an insurer could provide as many as 20 fund choices for its variable contract owners (each with a general investment strategy, e.g., a small company stock fund or a special industry fund) under certain circumstances, without causing such a contract owner to be treated as the tax owner of any of the Fund assets. The ruling does not specify the number of fund options, if any, that might prevent a variable contract owner from receiving favorable tax treatment. As a result, although the owner of a Contract has more than 20 fund choices, we believe that any owner of a Contract also should receive the same favorable tax treatment. However, there is necessarily some uncertainty here as long as the IRS continues to use a facts and circumstances test for investor control and other tax ownership issues. Therefore, we reserve the right to modify the Contract as necessary to prevent you from being treated as the tax owner of any underlying assets.
D. Federal Income Tax Withholding
The portion of an amount received under a Contract that is taxable gross income to the Payee is also subject to federal income tax withholding, pursuant to Code Section 3405, which requires the following:
1.
Non-Periodic Distributions. The portion of a non-periodic distribution that is includable in gross income is subject to federal income tax withholding unless an individual elects not to have such tax withheld (“election out”). We will provide such an “election out” form at the time such a distribution is requested. If the necessary “election out” form is not submitted to us in a timely manner, generally we are required to withhold 10 percent of the includable amount of distribution and remit it to the IRS.
2.
Periodic Distributions (payable over a period greater than one year). The portion of a periodic distribution that is includable in gross income is generally subject to federal income tax withholding as if the Payee were a married individual claiming 3 exemptions, unless the individual elects otherwise. An individual generally may elect out of such withholding, or elect to have income tax withheld at a different rate, by providing a completed election form. We will provide such an election form at the time such a distribution is requested. If the necessary “election out” forms are not submitted to us in a timely manner, we are required to withhold tax as if the recipient were married claiming 3 exemptions, and remit this amount to the IRS.
Generally no “election out” is permitted if the distribution is delivered outside the United States and any possession of the United States. Regardless of any “election out” (or any amount of tax actually withheld) on an amount received from a Contract, the Payee is generally liable for any failure to pay the full amount of tax due on the includable portion of such amount received. A Payee also may be required to pay penalties under estimated income tax rules, if the withholding and estimated tax payments are insufficient to satisfy the Payee’s total tax liability.
E. General Provisions Affecting Qualified Retirement Plans
The Contract may be used for a number of qualified retirement plans. If the Contract is being purchased with respect to some form of qualified retirement plan, please refer to the section entitled “Information Regarding Tax-Qualified Retirement Plans” for information relative to the types of plans for which it may be used and the general explanation of the tax features of such plans.
F. Nonresident Aliens and Foreign Entities
The discussion above provides general information regarding U.S. federal income tax consequences to annuity purchasers that are U.S. persons (such as U.S. citizens or U.S. resident aliens). Purchasers (and payees such as a purchaser’s beneficiary) that are not U.S. persons (such as a Nonresident Alien) will generally be subject to U.S. federal income tax and withholding on taxable annuity distributions at a 30% rate, unless a lower treaty rate applies and any required information and IRS tax forms (such as IRS Form W-8BEN) are submitted to us. If withholding tax applies, we are generally required to withhold tax at a 30% rate, or a lower treaty rate if applicable, and remit it to the IRS. Foreign entities (such as foreign corporations, foreign partnerships, or foreign trusts) must provide the appropriate IRS tax forms (such as IRS Form W-8BEN-E or other appropriate Form W-8). If required by law, we may withhold 30% from any taxable payment in accordance with applicable requirements such as The Foreign Account Tax Compliance Act (FATCA) and applicable regulations. An updated Form W-8 is generally required to be submitted every three years. Purchasers may also be subject to state premium tax, other state and/or municipal taxes, and taxes that may be imposed by the purchaser’s country of citizenship or residence.
G. Estate, Gift and Generation-Skipping Tax and Related Tax Considerations


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Any amount payable upon a Contract Owner’s death, whether before or after the Annuity Commencement Date, is generally includable in the Contract Owner’s estate for federal estate tax purposes. Similarly, prior to the Contract Owner’s death, the payment of any amount from the Contract, or the transfer of any interest in the Contract, to a beneficiary or other person for less than adequate consideration may have federal gift tax consequences. In addition, any transfer to, or designation of, a non-Spouse beneficiary who either is (1) 37 1/2 or more years younger than a Contract Owner or (2) a grandchild (or more remote further descendant) of a Contract Owner may have federal generation-skipping-transfer (“GST”) tax consequences under Code Section 2601. Regulations under Code Section 2662 may require us to deduct any such GST tax from your Contract, or from any applicable payment, and pay it directly to the IRS. However, any federal estate, gift or GST tax payment with respect to a Contract could produce an offsetting income tax deduction for a beneficiary or transferee under Code Section 691(c) (partially offsetting such federal estate or GST tax) or a basis increase for a beneficiary or transferee under Code Section 691(c) or Section 1015(d). In addition, as indicated above in “Distributions Prior to the Annuity Commencement Date,” the transfer of a Contract for less than adequate consideration during the Contract Owner’s lifetime generally is treated as producing an amount received by such Contract Owner that is subject to both income tax and the 10% penalty tax. To the extent that such an amount deemed received causes an amount to be includable currently in such Contract Owner’s gross income, this same income amount could produce a corresponding increase in such Contract Owner’s tax basis for such Contract that is carried over to the transferee’s tax basis for such Contract under Code Section 72(e)(4)(C)(iii) and Section 1015.
H. Tax Disclosure Obligations
In some instances certain transactions must be disclosed to the IRS or penalties could apply. See, for example, IRS Notice 2004-67. The Code also requires certain “material advisers” to maintain a list of persons participating in such “reportable transactions,” which list must be furnished to the IRS upon request. It is possible that such disclosures could be required by us, the Owner(s) or other persons involved in transactions involving annuity contracts. It is the responsibility of each party, in consultation with their tax and legal advisers, to determine whether the particular facts and circumstances warrant such disclosures.
Information Regarding Tax-Qualified Retirement Plans
This summary does not attempt to provide more than general information about the federal income tax rules associated with use of a Contract by a tax-qualified retirement plan. State income tax rules applicable to tax-qualified retirement plans often differ from federal income tax rules, and this summary does not describe any of these differences. Because of the complexity of the tax rules, owners, participants and beneficiaries are encouraged to consult their own tax advisors as to specific tax consequences.
The Contracts are available to a variety of tax-qualified retirement plans and arrangements (a “Qualified Plan” or “Plan”). Tax restrictions and consequences for Contracts or accounts under each type of Qualified Plan differ from each other and from those for Non-Qualified Contracts. In addition, individual Qualified Plans may have terms and conditions that impose additional rules. Therefore, no attempt is made herein to provide more than general information about the use of the Contract with the various types of Qualified Plans. Participants under such Qualified Plans, as well as Contract Owners, annuitants and beneficiaries, are cautioned that the rights of any person to any benefits under such Qualified Plans may be subject to terms and conditions of the Plans themselves or limited by applicable law, regardless of the terms and conditions of the Contract issued in connection therewith. Qualified Plans generally provide for the tax deferral of income regardless of whether the Qualified Plan invests in an annuity or other investment. You should consider if the Contract is a suitable investment if you are investing through a Qualified Plan.
The following is only a general discussion about types of Qualified Plans for which the Contracts may be available. We are not the plan administrator for any Qualified Plan. The plan administrator or custodian, whichever is applicable, (but not us) is responsible for all Plan administrative duties including, but not limited to, notification of distribution options, disbursement of Plan benefits, handling any processing and administration of Qualified Plan loans, compliance with regulatory requirements and federal and state tax reporting of income/distributions from the Plan to Plan participants and, if applicable, beneficiaries of Plan participants and IRA contributions from Plan participants. Our administrative duties are limited to administration of the Contract and any disbursements of any Contract benefits to the Owner, annuitant or beneficiary of the Contract, as applicable. Our tax reporting responsibility is limited to federal and state tax reporting of income/distributions to the applicable payee and IRA contributions from the Owner of a Contract, as recorded on our books and records. If you are purchasing a Contract through a Qualified Plan, you should consult with your Plan administrator and/or a qualified tax adviser. You also should consult with a qualified tax adviser and/or Plan administrator before you withdraw any portion of your Contract Value.
The tax rules applicable to Qualified Contracts and Qualified Plans, including restrictions on contributions and distributions, taxation of distributions and tax penalties, vary according to the type of Qualified Plan, as well as the terms and conditions of the Plan itself. Various tax penalties may apply to contributions in excess of specified limits, plan distributions (including loans) that do not comply with specified limits, and certain other transactions relating to such Plans. Accordingly, this summary provides only general information about the tax rules associated with use of a Qualified Contract in such a Qualified Plan. In addition, some Qualified Plans are subject to distribution and other requirements that are not incorporated into our administrative procedures. Owners, participants, and beneficiaries are responsible for determining that contributions, distributions and other


APP TAX-8
 
 
 

transactions comply with applicable tax (and non-tax) law and any applicable Qualified Plan terms. Because of the complexity of these rules, Owners, participants and beneficiaries are advised to consult with a qualified tax adviser as to specific tax consequences.
We do not currently offer the Contracts in connection with all of the types of Qualified Plans discussed below, and may not offer the Contracts for all types of Qualified Plans in the future.
1. Individual Retirement Annuities (“IRAs”).
In addition to “traditional” IRAs governed by Code Sections 408(a) and (b) (“Traditional IRAs”), there are Roth IRAs governed by Code Section 408A, SEP IRAs governed by Code Section 408(k), and SIMPLE IRAs governed by Code Section 408(p). Also, Qualified Plans under Code Section 401, 403(b) or 457(b) may elect to provide for a separate account or annuity contract that accepts after-tax employee contributions and is treated as a “Deemed IRA” under Code Section 408(q), which is generally subject to the same rules and limitations as Traditional IRAs. Contributions to each of these types of IRAs are subject to differing limitations. The following is a very general description of each type of IRA for which a Contract is available.
a.
Traditional IRAs
Traditional IRAs are subject to limits on the amounts that may be contributed each year, the persons who may be eligible, and the time when minimum distributions must begin. Depending upon the circumstances of the individual, contributions to a Traditional IRA may be made on a deductible or non-deductible basis. Failure to make required minimum distributions (“RMDs”) when the Owner reaches age 70½ or dies, as described below, may result in imposition of a 50% additional tax on any excess of the RMD amount over the amount actually distributed. In addition, any amount received before the Owner reaches age 59½ or dies is subject to a 10% additional tax on premature distributions, unless a special exception applies, as described below. Under Code Section 408(e), an IRA may not be used for borrowing (or as security for any loan) or in certain prohibited transactions, and such a transaction could lead to the complete tax disqualification of an IRA.
You (or your surviving spouse if you die) may rollover funds tax-free from certain existing Qualified Plans (such as proceeds from existing insurance contracts, annuity contracts or securities) into a Traditional IRA under certain circumstances, as indicated below. However, mandatory tax withholding of 20% may apply to any eligible rollover distribution from certain types of Qualified Plans if the distribution is not transferred directly to the Traditional IRA. In addition, under Code Section 402(c)(11) a non-spouse “designated beneficiary” of a deceased Plan participant may make a tax-free “direct rollover” (in the form of a direct transfer between Plan fiduciaries, as described below in “Rollover Distributions”) from certain Qualified Plans to a Traditional IRA for such beneficiary, but such Traditional IRA must be designated and treated as an “inherited IRA” that remains subject to applicable RMD rules (as if such IRA had been inherited from the deceased Plan participant).
IRAs generally may not invest in life insurance contracts. However, an annuity contract that is used as an IRA may provide a death benefit that equals the greater of the premiums paid or the contract’s cash value. The Contract offers an enhanced death benefit that may exceed the greater of the Contract Value or total premium payments. The tax rules are unclear as to what extent an IRA can provide a death benefit that exceeds the greater of the IRA’s cash value or the sum of the premiums paid and other contributions into the IRA. Please note that the IRA rider for the Contract has provisions that are designed to maintain the Contract’s tax qualification as an IRA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract’s tax qualification.
b.
SEP IRAs
Code Section 408(k) provides for a Traditional IRA in the form of an employer-sponsored defined contribution plan known as a Simplified Employee Pension (“SEP”) or a SEP IRA. A SEP IRA can have employer contributions, and in limited circumstances employee and salary reduction contributions, as well as higher overall contribution limits than a Traditional IRA, but a SEP is also subject to special tax-qualification requirements (e.g., on participation, nondiscrimination and withdrawals) and sanctions. Otherwise, a SEP IRA is generally subject to the same tax rules as for a Traditional IRA, which are described above. Please note that the IRA rider for the Contract has provisions that are designed to maintain the Contract’s tax qualification as an IRA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract’s tax qualification.
c.
SIMPLE IRAs
The Savings Incentive Match Plan for Employees of small employers (“SIMPLE Plan”) is a form of an employer-sponsored Qualified Plan that provides IRA benefits for the participating employees (“SIMPLE IRAs”). Depending upon the SIMPLE Plan, employers may make plan contributions into a SIMPLE IRA established by each eligible participant. Like a Traditional IRA, a SIMPLE IRA is subject to the 50% additional tax for failure to make a full RMD, and to the 10% additional tax on premature distributions, as described below. In addition, the 10% additional tax is increased to 25% for amounts received during the 2-year period beginning on the date you first participated in a qualified salary reduction arrangement pursuant to a SIMPLE Plan maintained by your employer under Code Section 408(p)(2). Contributions to a SIMPLE IRA may be either salary deferral contributions or employer contributions, and these are subject to different tax limits from those for a Traditional IRA. Please note that the SIMPLE IRA rider for the Contract has provisions that are designed to maintain the Contract’s tax qualification


APP TAX-9
 
 
 

as an SIMPLE IRA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract’s tax qualification.
A SIMPLE Plan may designate a single financial institution (a Designated Financial Institution) as the initial trustee, custodian or issuer (in the case of an annuity contract) of the SIMPLE IRA set up for each eligible participant. However, any such Plan also must allow each eligible participant to have the balance in his SIMPLE IRA held by the Designated Financial Institution transferred without cost or penalty to a SIMPLE IRA maintained by a different financial institution. Absent a Designated Financial Institution, each eligible participant must select the financial institution to hold his SIMPLE IRA, and notify his employer of this selection.
If we do not serve as the Designated Financial Institution for your employer’s SIMPLE Plan, for you to use one of our Contracts as a SIMPLE IRA, you need to provide your employer with appropriate notification of such a selection under the SIMPLE Plan. If you choose, you may arrange for a qualifying transfer of any amounts currently held in another SIMPLE IRA for your benefit to your SIMPLE IRA with us.
d.
Roth IRAs
Code Section 408A permits eligible individuals to establish a Roth IRA. Contributions to a Roth IRA are not deductible, but withdrawals of amounts contributed and the earnings thereon that meet certain requirements are not subject to federal income tax. In general, Roth IRAs are subject to limitations on the amounts that may be contributed by the persons who may be eligible to contribute, certain Traditional IRA restrictions, and certain RMD rules on the death of the Contract Owner. Unlike a Traditional IRA, Roth IRAs are not subject to RMD rules during the Contract Owner’s lifetime. Generally, however, upon the Owner’s death the amount remaining in a Roth IRA must be distributed by the end of the fifth year after such death or distributed over the life expectancy of a designated beneficiary. Prior to January 1, 2018, the Owner of a Traditional IRA or other qualified plan assets could recharacterize a Traditional IRA into a Roth IRA under certain circumstances. Effective January 1, 2018, a Traditional IRA or other qualified plan cannot be recharacterized as a Roth IRA. Tax-free rollovers from a Roth IRA can be made only to another Roth IRA under limited circumstances, as indicated below. After 2007, distributions from eligible Qualified Plans can be “rolled over” directly (subject to tax) into a Roth IRA under certain circumstances. Anyone considering the purchase of a Qualified Contract as a Roth IRA should consult with a qualified tax adviser. Please note that the Roth IRA rider for the Contract has provisions that are designed to maintain the Contract’s tax qualification as a Roth IRA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract’s tax qualification.
2. Qualified Pension or Profit-Sharing Plan or Section 401(k) Plan
Provisions of the Code permit eligible employers to establish a tax-qualified pension or profit sharing plan (described in Section 401(a), and Section 401(k) if applicable, and exempt from taxation under Section 501(a)). Such a Plan is subject to limitations on the amounts that may be contributed, the persons who may be eligible to participate, the amounts of “incidental” death benefits, and the time when RMDs must commence. In addition, a Plan’s provision of incidental benefits may result in currently taxable income to the participant for some or all of such benefits. Amounts may be rolled over tax-free from a Qualified Plan to another Qualified Plan under certain circumstances, as described below. Anyone considering the use of a Qualified Contract in connection with such a Qualified Plan should seek competent tax and other legal advice.
In particular, please note that these tax rules provide for limits on death benefits provided by a Qualified Plan (to keep such death benefits “incidental” to qualified retirement benefits), and a Qualified Plan (or a Qualified Contract) often contains provisions that effectively limit such death benefits to preserve the tax qualification of the Qualified Plan (or Qualified Contract). In addition, various tax-qualification rules for Qualified Plans specifically limit increases in benefits once RMDs begin, and Qualified Contracts are subject to such limits. As a result, the amounts of certain benefits that can be provided by any option under a Qualified Contract may be limited by the provisions of the Qualified Contract or governing Qualified Plan that are designed to preserve its tax qualification.
3. Tax Sheltered Annuity under Section 403(b) (“TSA”)
Code Section 403(b) permits public school employees and employees of certain types of charitable, educational and scientific organizations described in Code Section 501(c)(3) to purchase a “tax-sheltered annuity” (“TSA”) contract and, subject to certain limitations, exclude employer contributions to a TSA from such an employee’s gross income. Generally, total contributions may not exceed the lesser of an annual dollar limit or 100% of the employee’s “includable compensation” for the most recent full year of service, subject to other adjustments. There are also legal limits on annual elective deferrals that a participant may be permitted to make under a TSA. In certain cases, such as when the participant is age 50 or older, those limits may be increased. A TSA participant should contact his plan administrator to determine applicable elective contribution limits. Special provisions may allow certain employees different overall limitations.
A TSA is subject to a prohibition against distributions from the TSA attributable to contributions made pursuant to a salary reduction agreement, unless such distribution is made:
a.
after the employee reaches age 59½;
b.
upon the employee’s separation from service;
c.
upon the employee’s death or disability;


APP TAX-10
 
 
 

d.
in the case of hardship (as defined in applicable law and in the case of hardship, any income attributable to such contributions may not be distributed); or
e.
as a qualified reservist distribution upon certain calls to active duty.
An employer sponsoring a TSA may impose additional restrictions on your TSA through its plan document.
Please note that the TSA rider for the Contract has provisions that are designed to maintain the Contract’s tax qualification as a TSA, and therefore could limit certain benefits under the Contract (including endorsement, rider or option benefits) to maintain the Contract’s tax qualification. In particular, please note that tax rules provide for limits on death benefits provided by a Qualified Plan (to keep such death benefits “incidental” to qualified retirement benefits), and a Qualified Plan (or a Qualified Contract) often contains provisions that effectively limit such death benefits to preserve the tax qualification of the Qualified Plan (or Qualified Contract). In addition, various tax-qualification rules for Qualified Plans specifically limit increases in benefits once RMDs begin, and Qualified Contracts are subject to such limits. As a result, the amounts of certain benefits that can be provided by any option under a Qualified Contract may be limited by the provisions of the Qualified Contract or governing Qualified Plan that are designed to preserve its tax qualification. In addition, a life insurance contract issued after September 23, 2007 is generally ineligible to qualify as a TSA under Reg. § 1.403(b)-8(c)(2).
Amounts may be rolled over tax-free from a TSA to another TSA or Qualified Plan (or from a Qualified Plan to a TSA) under certain circumstances, as described below. However, effective for TSA contract exchanges after September 24, 2007, Reg. § 1.403(b)-10(b) allows a TSA contract of a participant or beneficiary under a TSA Plan to be exchanged tax-free for another eligible TSA contract under that same TSA Plan, but only if all of the following conditions are satisfied: (1) such TSA Plan allows such an exchange, (2) the participant or beneficiary has an accumulated benefit after such exchange that is no less than such participant’s or beneficiary’s accumulated benefit immediately before such exchange (taking into account such participant’s or beneficiary’s accumulated benefit under both TSA contracts immediately before such exchange), (3) the second TSA contract is subject to distribution restrictions with respect to the participant that are no less stringent than those imposed on the TSA contract being exchanged, and (4) the employer for such TSA Plan enters into an agreement with the issuer of the second TSA contract under which such issuer and employer will provide each other from time to time with certain information necessary for such second TSA contract (or any other TSA contract that has contributions from such employer) to satisfy the TSA requirements under Code Section 403(b) and other federal tax requirements (e.g., plan loan conditions under Code Section 72(p) to avoid deemed distributions). Such necessary information could include information about the participant’s employment, information about other Qualified Plans of such employer, and whether a severance has occurred, or hardship rules are satisfied, for purposes of the TSA distribution restrictions. Consequently, you are advised to consult with a qualified tax advisor before attempting any such TSA exchange, particularly because it requires an agreement between the employer and issuer to provide each other with certain information. In addition, the same Regulation provides corresponding rules for a transfer from one TSA to another TSA under a different TSA Plan (e.g., for a different eligible employer). We are no longer accepting any incoming exchange request, or new contract application, for any individual TSA contract.
4. Deferred Compensation Plans under Section 457 (“Section 457 Plans”)
Certain governmental employers, or tax-exempt employers other than a governmental entity, can establish a Deferred Compensation Plan under Code Section 457. For these purposes, a “governmental employer” is a State, a political subdivision of a State, or an agency or an instrumentality of a State or political subdivision of a State. A Deferred Compensation Plan that meets the requirements of Code Section 457(b) is called an “Eligible Deferred Compensation Plan” or “Section 457(b) Plan.” Code Section 457(b) limits the amount of contributions that can be made to an Eligible Deferred Compensation Plan on behalf of a participant. Generally, the limitation on contributions is the lesser of (1) 100% of a participant’s includible compensation or (2) the applicable dollar amount ($18,000 for 2017 and $18,500 for 2018). The Plan may provide for additional “catch-up” contributions . In addition, under Code Section 457(d) a Section 457(b) Plan may not make amounts available for distribution to participants or beneficiaries before (1) the calendar year in which the participant attains age 70½, (2) the participant has a severance from employment (including death), or (3) the participant is faced with an unforeseeable emergency (as determined in accordance with regulations).
Under Code Section 457(g) all of the assets and income of an Eligible Deferred Compensation Plan for a governmental employer must be held in trust for the exclusive benefit of participants and their beneficiaries. For this purpose, annuity contracts and custodial accounts described in Code Section 401(f) are treated as trusts. This trust requirement does not apply to amounts under an Eligible Deferred Compensation Plan of a tax-exempt (non-governmental) employer. In addition, this trust requirement does not apply to amounts held under a Deferred Compensation Plan of a governmental employer that is not a Section 457(b) Plan. However, where the trust requirement does not apply, amounts held under a Section 457 Plan must remain subject to the claims of the employer’s general creditors under Code Section 457(b)(6).
5. Taxation of Amounts Received from Qualified Plans
Except under certain circumstances in the case of Roth IRAs or Roth accounts in certain Qualified Plans, amounts received from Qualified Contracts or Plans generally are taxed as ordinary income under Code Section 72, to the extent that they are not treated as a tax-free recovery of after-tax contributions or other “investment in the contract.” For annuity payments and other amounts received after the Annuity Commencement Date from a Qualified Contract or Plan, the tax rules for determining


APP TAX-11
 
 
 

what portion of each amount received represents a tax-free recovery of “investment in the contract” are generally the same as for Non-Qualified Contracts, as described above.
For non-periodic amounts from certain Qualified Contracts or Plans, Code Section 72(e)(8) provides special rules that generally treat a portion of each amount received as a tax-free recovery of the “investment in the contract,” based on the ratio of the “investment in the contract” over the Contract Value at the time of distribution. However, in determining such a ratio, certain aggregation rules may apply and may vary, depending on the type of Qualified Contract or Plan. For instance, all Traditional IRAs owned by the same individual are generally aggregated for these purposes, but such an aggregation does not include any IRA inherited by such individual or any Roth IRA owned by such individual.
In addition, additional taxes, mandatory tax withholding or rollover rules may apply to amounts received from a Qualified Contract or Plan, as indicated below, and certain exclusions may apply to certain distributions (e.g., distributions from an eligible Government Plan to pay qualified health insurance premiums of an eligible retired public safety officer). Accordingly, you are advised to consult with a qualified tax adviser before taking or receiving any amount (including a loan) from a Qualified Contract or Plan.
6.
Additional Taxes for Qualified Plans
Unlike Non-Qualified Contracts, Qualified Contracts are subject to federal additional taxes not just on premature distributions, but also on excess contributions and failures to make required minimum distributions (“RMDs”). Additional taxes on excess contributions can vary by type of Qualified Plan and which person made the excess contribution (e.g., employer or an employee). The additional taxes on premature distributions and failures to make timely RMDs are more uniform, and are described in more detail below.
a.
Additional Taxes on Premature Distributions
Code Section 72(t) imposes a penalty income tax equal to 10% of the taxable portion of a distribution from certain types of Qualified Plans that is made before the employee reaches age 59½. However, this 10% additional tax does not apply to a distribution that is either:
(i)
made to a beneficiary (or to the employee’s estate) on or after the employee’s death;
(ii)
attributable to the employee’s becoming disabled under Code Section 72(m)(7);
(iii)
part of a series of substantially equal periodic payments (not less frequently than annually - “SEPPs”) made for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of such employee and a designated beneficiary (“SEPP Exception”), and for certain Qualified Plans (other than IRAs) such a series must begin after the employee separates from service;
(iv)
(except for IRAs) made to an employee after separation from service after reaching age 55 (or made after age 50 in the case of a qualified public safety employee separated from certain government plans);
(v)
(except for IRAs) made to an alternate payee pursuant to a qualified domestic relations order under Code Section 414(p) (a similar exception for IRAs in Code Section 408(d)(6) covers certain transfers for the benefit of a spouse or ex-spouse);
(vi)
not greater than the amount allowable as a deduction to the employee for eligible medical expenses during the taxable year;
(vii)
certain qualified reservist distributions under Code Section 72(t)(2)(G) upon a call to active duty;
(viii)
made an account of an IRS levy on the Qualified Plan under Code Section 72(t)(2)(A)(vii); or
(ix)
made as a “direct rollover” or other timely rollover to an Eligible Retirement Plan, as described below.
In addition, the 10% additional tax does not apply to a distribution from an IRA that is either:
(x)
made after separation from employment to an unemployed IRA owner for health insurance premiums, if certain conditions in Code Section 72(t)(2)(D) are met;
(xi)
not in excess of the amount of certain qualifying higher education expenses, as defined by Code Section 72(t)(7); or
(xii)
for a qualified first-time home buyer and meets the requirements of Code Section 72(t)(8).
If the taxpayer avoids this 10% additional tax by qualifying for the SEPP Exception and later such series of payments is modified (other than by death, disability or a method change allowed by Rev. Rul. 2002-62), the 10% additional tax will be applied retroactively to all the prior periodic payments (i.e., additional tax plus interest thereon), unless such modification is made after both (a) the employee has reached age 59½ and (b) 5 years have elapsed since the first of these periodic payments.
For any premature distribution from a SIMPLE IRA during the first 2 years that an individual participates in a salary reduction arrangement maintained by that individual’s employer under a SIMPLE Plan, the 10% additional tax rate is increased to 25%.
b.
RMDs and 50% Additional Tax
If the amount distributed from a Qualified Contract or Plan is less than the amount of the required minimum distribution (“RMD”) for the year, the participant is subject to a 50% additional tax on the amount that has not been timely distributed.


APP TAX-12
 
 
 

An individual’s interest in a Qualified Plan generally must be distributed, or begin to be distributed, not later than the Required Beginning Date. Generally, the Required Beginning Date is April 1 of the calendar year following the later of -
(i)
the calendar year in which the individual attains age 70½, or
(ii)
(except in the case of an IRA or a 5% owner, as defined in the Code) the calendar year in which a participant retires from service with the employer sponsoring a Qualified Plan that allows such a later Required Beginning Date.
A special rule applies to individuals who attained age 70½ in 2009. Such individuals should consult with a qualified tax adviser before taking RMDs in 2010.
The entire interest of the individual must be distributed beginning no later than the Required Beginning Date over -
(a)
the life of the individual or the lives of the individual and a designated beneficiary (as specified in the Code), or
(b)
over a period not extending beyond the life expectancy of the individual or the joint life expectancy of the individual and a designated beneficiary.
If an individual dies before reaching the Required Beginning Date, the individual’s entire interest generally must be distributed within 5 years after the individual’s death. However, this RMD rule will be deemed satisfied if distributions begin before the close of the calendar year following the individual’s death to a qualifying designated beneficiary and distribution is over the life of such designated beneficiary (or over a period not extending beyond the life expectancy of such beneficiary). If the individual’s surviving spouse is the sole designated beneficiary, distributions may be delayed until the deceased individual would have attained age 70½.
If an individual dies after RMDs have begun for such individual, any remainder of the individual’s interest generally must be distributed at least as rapidly as under the method of distribution in effect at the time of the individual’s death.
The RMD rules that apply while the Contract Owner is alive do not apply with respect to Roth IRAs. The RMD rules applicable after the death of the Owner apply to all Qualified Plans, including Roth IRAs. In addition, if the Owner of a Traditional or Roth IRA dies and the Owner’s surviving spouse is the sole designated beneficiary, this surviving spouse may elect to treat the Traditional or Roth IRA as his or her own.
The RMD amount for each year is determined generally by dividing the account balance by the applicable life expectancy. This account balance is generally based upon the account value as of the close of business on the last day of the previous calendar year. RMD incidental benefit rules also may require a larger annual RMD amount, particularly when distributions are made over the joint lives of the Owner and an individual other than his or her spouse. RMDs also can be made in the form of annuity payments that satisfy the rules set forth in Regulations under the Code relating to RMDs.
In addition, in computing any RMD amount based on a contract’s account value, such account value must include the actuarial value of certain additional benefits provided by the contract. As a result, electing an optional benefit under a Qualified Contract may require the RMD amount for such Qualified Contract to be increased each year, and expose such additional RMD amount to the 50% additional tax for RMDs if such additional RMD amount is not timely distributed.
7. Tax Withholding for Qualified Plans
Distributions from a Qualified Contract or Qualified Plan generally are subject to federal income tax withholding requirements. These federal income tax withholding requirements, including any “elections out” and the rate at which withholding applies, generally are the same as for periodic and non-periodic distributions from a Non-Qualified Contract, as described above, except where the distribution is an “eligible rollover distribution” from a Qualified Plan (described below in “Rollover Distributions”). In the latter case, tax withholding is mandatory at a rate of 20% of the taxable portion of the “eligible rollover distribution,” to the extent it is not directly rolled over to an IRA or other Eligible Retirement Plan (described below in “Rollover Distributions”). Payees cannot elect out of this mandatory 20% withholding in the case of such an “eligible rollover distribution.”
Also, special withholding rules apply with respect to distributions from non-governmental Section 457(b) Plans, and to distributions made to individuals who are neither citizens nor resident aliens of the United States.
Regardless of any “election out” (or any actual amount of tax actually withheld) on an amount received from a Qualified Contract or Plan, the payee is generally liable for any failure to pay the full amount of tax due on the includable portion of such amount received. A payee also may be required to pay penalties under estimated income tax rules, if the withholding and estimated tax payments are insufficient to satisfy the payee’s total tax liability.
8. Rollover Distributions
The current tax rules and limits for tax-free rollovers and transfers between Qualified Plans vary according to (1) the type of transferor Plan and transferee Plan, (2) whether the amount involved is transferred directly between Plan fiduciaries (a “direct transfer” or a “direct rollover”) or is distributed first to a participant or beneficiary who then transfers that amount back into another eligible Plan within 60 days (a “60-day rollover”), and (3) whether the distribution is made to a participant, spouse or other beneficiary. Accordingly, we advise you to consult with a qualified tax adviser before receiving any amount from a Qualified Contract or Plan or attempting some form of rollover or transfer with a Qualified Contract or Plan.
For instance, generally any amount can be transferred directly from one type of Qualified Plan to the same type of Plan for the benefit of the same individual, without limit (or federal income tax), if the transferee Plan is subject to the same kinds of


APP TAX-13
 
 
 

restrictions as the transfer or Plan and certain other conditions to maintain the applicable tax qualification are satisfied. Such a “direct transfer” between the same kinds of Plan is generally not treated as any form of “distribution” out of such a Plan for federal income tax purposes.
By contrast, an amount distributed from one type of Plan into a different type of Plan generally is treated as a “distribution” out of the first Plan for federal income tax purposes, and therefore to avoid being subject to such tax, such a distribution must qualify either as a “direct rollover” (made directly to another Plan fiduciary) or as a “60-day rollover.” The tax restrictions and other rules for a “direct rollover” and a “60-day rollover” are similar in many ways, but if any “eligible rollover distribution” made from certain types of Qualified Plan is not transferred directly to another Plan fiduciary by a “direct rollover,” then it is subject to mandatory 20% withholding, even if it is later contributed to that same Plan in a “60-day rollover” by the recipient. If any amount less than 100% of such a distribution (e.g., the net amount after the 20% withholding) is transferred to another Plan in a “60-day rollover”, the missing amount that is not rolled over remains subject to normal income tax plus any applicable additional tax.
Under Code Sections 402(f)(2)(A) and 3405(c)(3) an “eligible rollover distribution” (which is both eligible for rollover treatment and subject to 20% mandatory withholding absent a “direct rollover”) is generally any distribution to an employee of any portion (or all) of the balance to the employee’s credit in any of the following types of “Eligible Retirement Plan”: (1) a Qualified Plan under Code Section 401(a) (“Qualified 401(a) Plan”), (2) a qualified annuity plan under Code Section 403(a) (“Qualified Annuity Plan”), (3) a TSA under Code Section 403(b), or (4) a governmental Section 457(b) Plan. However, an “eligible rollover distribution” does not include any distribution that is either -
a.
an RMD amount;
b.
one of a series of substantially equal periodic payments (not less frequently than annually) made either (i) for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of the employee and a designated beneficiary, or (ii) for a specified period of 10 years or more; or
c.
any distribution made upon hardship of the employee.
Before making an “eligible rollover distribution,” a Plan administrator generally is required under Code Section 402(f) to provide the recipient with advance written notice of the “direct rollover” and “60-day rollover” rules and the distribution’s exposure to the 20% mandatory withholding if it is not made by “direct rollover.” Generally, under Code Sections 402(c), 403(b)(8) and 457 (e)(16), a “direct rollover” or a “60-day rollover” of an “eligible rollover distribution” can be made to a Traditional IRA or to another Eligible Retirement Plan that agrees to accept such a rollover. However, the maximum amount of an “eligible rollover distribution” that can qualify for a tax-free “60-day rollover” is limited to the amount that otherwise would be includable in gross income. By contrast, a “direct rollover” of an “eligible rollover distribution” can include after-tax contributions as well, if the direct rollover is made either to a Traditional IRA or to another form of Eligible Retirement Plan that agrees to account separately for such a rollover, including accounting for such after-tax amounts separately from the otherwise taxable portion of this rollover. Separate accounting also is required for all amounts (taxable or not) that are rolled into a governmental Section 457(b) Plan from either a Qualified Section 401(a) Plan, Qualified Annuity Plan, TSA or IRA. These amounts, when later distributed from the governmental Section 457(b) Plan, are subject to any premature distribution additional tax applicable to distributions from such a “predecessor” Qualified Plan.
Rollover rules for distributions from IRAs under Code Sections 408(d)(3) and 408A(d)(3) also vary according to the type of transferor IRA and type of transferee IRA or other Plan. For instance, generally no tax-free “direct rollover” or “60-day rollover” can be made between a “NonRoth IRA” (Traditional, SEP or SIMPLE IRA) and a Roth IRA, and a transfer from NonRoth IRA to a Roth IRA, or a “conversion” of a NonRoth IRA to a Roth IRA, is subject to special rules. In addition, generally no tax-free “direct rollover” or “60-day rollover” can be made between an “inherited IRA” (NonRoth or Roth) for a beneficiary and an IRA set up by that same individual as the original owner. Generally, any amount other than an RMD distributed from a Traditional or SEP IRA is eligible for a “direct rollover” or a “60-day rollover” to another Traditional IRA for the same individual. Similarly, any amount other than an RMD distributed from a Roth IRA is generally eligible for a “direct rollover” or a “60-day rollover” to another Roth IRA for the same individual. However, in either case such a tax-free 60-day rollover is limited to 1 per year (365-day period); whereas no 1-year limit applies to any such “direct rollover.” Similar rules apply to a “direct rollover” or a “60-day rollover” of a distribution from a SIMPLE IRA to another SIMPLE IRA or a Traditional IRA, except that any distribution of employer contributions from a SIMPLE IRA during the initial 2-year period in which the individual participates in the employer’s SIMPLE Plan is generally disqualified (and subject to the 25% additional tax on premature distributions) if it is not rolled into another SIMPLE IRA for that individual. Amounts other than RMDs distributed from a Traditional or SEP IRA (or SIMPLE IRA after the initial 2-year period) also are eligible for a “direct rollover” or a “60-day rollover” to an Eligible Retirement Plan (e.g., a TSA) that accepts such a rollover, but any such rollover is limited to the amount of the distribution that otherwise would be includable in gross income (i.e., after-tax contributions are not eligible).
Special rules also apply to transfers or rollovers for the benefit of a spouse (or ex-spouse) or a non-spouse designated beneficiary, Plan distributions of property, and obtaining a waiver of the 60-day limit for a tax-free rollover from the IRS. The Katrina Emergency Tax Relief Act of 2005 (KETRA) allows certain amounts to be re-contributed within three years as a rollover


APP TAX-14
 
 
 

contribution to a plan from which a KETRA distribution was taken. Other rules and exceptions may apply, so please consult with a qualified tax adviser.



APP I-1
 
 
 

Appendix I — Examples
Table of Contents
 
Page
Principal First
Principal First Preferred
Lifetime Income Builder
Lifetime Income Foundation
Lifetime Income Builder II
Lifetime Income Builder Selects and Lifetime Income Builder Portfolios
Annuity Commencement Date Deferral Option



APP I-2
 
 
 

Premium Security Death Benefit
Example 1
Assume that:
•
You purchased your Contract with the Premium Security Death Benefit, because You and Your Annuitant were both no older than age 80 on the issue date,
•
You made an initial Premium Payment of $100,000,
•
In your fourth Contract Year, you made a withdrawal of $8,000,
•
Your Contract Value in your fourth Contract Year immediately before your withdrawal was $109,273,
•
On the day we receive proof of Death, your Contract Value was $117,403, and your Maximum Anniversary Value was $106,000.
Calculation of Premium Security Death Benefit
To calculate the Premium Security Death Benefit, we calculate the following three values:
•
The Contract Value of your Contract on the day we receive proof of Death [$117,403],
•
Total Premium Payments adjusted for any partial Surrenders [$100,000 – $8,000 = $92,000]
•
The lesser of (a) Your Maximum Anniversary Value [$106,000] and (b) Your Contract Value on the day we calculate the Death Benefit, plus 25% of Your Maximum Anniversary Value excluding any subsequent Premium Payments we receive within 12 months of death [$117,403 + 25% × $106,000 = $143,903]; the lesser (a) and (b) is $106,000.
The Premium Security Death Benefit is the greatest of these three values, which is $117,403.
Example 2
Assume that:
•
You purchased your Contract with the Premium Security Death Benefit, because You and Your Annuitant were both no older than age 80 on the issue date,
•
You made an initial Premium Payment of $100,000,
•
In your fourth Contract Year, you made a partial Surrender of $60,000,
•
Your Contract Value in the fourth year immediately before your Surrender was $150,000,
•
On the day we receive proof of Death, your Contract Value was $120,000,
•
Your Maximum Anniversary Value is $83,571 (based on an adjustment to an anniversary value that was $140,000 before the partial Surrender (see below)).
Calculation of Premium Security Death Benefit
To calculate the Premium Security Death Benefit, we calculate the following three values:
•
The Contract Value of your Contract on the day we receive proof of Death [$120,000],
•
Total Premium Payments adjusted for any partial Surrenders [$57,857 (see below)],
•
The lesser of (a) Your Maximum Anniversary Value [$83,571 (see below)] and (b) Your Contract Value on the day we receive proof of Death plus 25% of Your Maximum Anniversary Value excluding any subsequent Premium Payments we receive within 12 months of death [$120,000 + 25% (83,571) = $140,893]; the lesser (a) and (b) is $83,571.
The Premium Security Death Benefit is the greatest of these three values, which is $120,000.
Adjustment for Partial Surrender for Total Premium Payments
The adjustment to your total Premium Payments for partial Surrenders is on a dollar for dollar basis up to 10% of total Premium Payments. 10% of total Premium Payments is $10,000. Total Premium Payments adjusted for dollar for dollar partial Surrenders is $90,000. The remaining partial Surrenders equal $50,000. This amount will reduce your total Premium Payments by a factor. To determine this factor, we take your Contract Value immediately before the Surrender [$150,000] and subtract the $10,000 dollar for dollar adjustment to get $140,000. The proportional factor is 1 - (50,000/140,000) = .64286. This factor is multiplied by $90,000. The result is an adjusted total Premium Payment of $57,857.
Adjustment for Partial Surrender for Maximum Anniversary Value
The adjustment to your Maximum Anniversary Value for partial Surrenders is on a dollar for dollar basis up to 10% of total Premium Payments. 10% of Premium Payments is $10,000. Your Maximum Anniversary Value adjusted for partial Surrenders on a dollar for dollar basis up to 10% of Premium Payments is $140,000 – $10,000 = $130,000. Remaining partial Surrenders are $50,000. We use this amount to reduce your Maximum Anniversary Value by a factor. To determine this factor, we take your Contract Value immediately before the Surrender [$150,000] and subtract the $10,000 dollar for dollar adjustment to get $140,000. The proportional factor is 1 – (50,000/140,000) = .64286. This factor is multiplied by $130,000. The result is an adjusted Maximum Anniversary Value of $83,571.


APP I-3
 
 
 

Asset Protection Death Benefit
Example 1
Assume that:
•
You purchased your Contract with the Asset Protection Death Benefit, because You and/or Your Annuitant were over age 80 on the issue date,
•
You made an initial Premium Payment of $100,000,
•
In your fourth Contract Year, you made a withdrawal of $8,000,
•
Your Contract Value in your fourth Contract Year immediately before your withdrawal was $109,273,
•
On the day we receive proof of Death, your Contract Value was $117,403,
•
Your Maximum Anniversary Value was $106,000.
Calculation of Asset Protection Death Benefit
To calculate the Asset Protection Death Benefit, we calculate the following three values:
•
The Contract Value of your Contract on the day we receive proof of Death [$117,403],
•
The lesser of (a) total Premium Payments adjusted for any partial Surrenders [$100,000 – $8,000 = $92,000] or (b) Your Contract Value on the day we calculate the Death Benefit, plus 25% of Your total Premium Payments adjusted for any partial Surrenders and excluding any subsequent Premium Payments we receive within 12 months of death [$117,403 + 25% × $92,000 = $140,403]; the lesser of (a) and (b) is $92,000.
•
The lesser of (a) Your Maximum Anniversary Value [$106,000] and (b) Your Contract Value on the day we calculate the Death Benefit, plus 25% of Your Maximum Anniversary Value excluding any subsequent Premium Payments we receive within 12 months of death [$117,403 + 25% × $106,000 = $143,903]; the lesser (a) and (b) is $106,000.
The Asset Protection Death Benefit is the greatest of these three values, which is $117,403.
Example 2
Assume that:
•
You purchased your Contract with the Asset Protection Death Benefit because You and/or Your Annuitant were over age 80 on the issue date,
•
You made an initial Premium Payment of $100,000,
•
In your fourth Contract Year, you made a partial Surrender of $60,000,
•
Your Contract Value in the fourth year immediately before your Surrender was $150,000,
•
On the day we receive proof of Death, your Contract Value was $120,000,
•
Your Maximum Anniversary Value is $83,571 (based on an adjustment to an anniversary value that was $140,000 before the partial Surrender (see below)).
Calculation of Asset Protection Death Benefit
To calculate the Asset Protection Death Benefit, we calculate the following three values:
•
The Contract Value of your Contract on the day we receive proof of Death [$120,000],
•
The lesser of (a) total Premium Payments adjusted for any partial Surrenders [$57,857 (see Example 1 under Premium Security Death Benefit)] or (b) Your Contract Value on the day we calculate the Death Benefit, plus 25% of Your total Premium Payments adjusted for any partial Surrenders and excluding any subsequent Premium Payments we receive within 12 months of death [$120,000 + 25% x $57,857 = $134,464]; the lesser (a) and (b) is $57,857,
•
The lesser of (a) Your Maximum Anniversary Value [$83,571 (see Example 1 under Premium Security Death Benefit)] and (b) Your Contract Value on the day we receive proof of Death plus 25% of Your Maximum Anniversary Value excluding any subsequent Premium Payments we receive within 12 months of death [$120,000 + 25% (83,571) = $140,893]; the lesser (a) and (b) is $83,571.
The Asset Protection Death Benefit is the greatest of these three values, which is $120,000.
Example 3
Assume the same facts as Example 1. If you Surrender $60,000, and your Contract Value is $150,000 at the time of the Surrender, then we recalculate your Benefit Amount by comparing the results of two calculations and taking the lesser of the two:
•
First we deduct the amount of the Surrender ($60,000) from your Contract Value ($150,000). This equals $90,000 and is your “New Contract Value.”
Calculation of Asset Protection Death Benefit
To calculate the Asset Protection Death Benefit, we calculate the following three values:
•
The Contract Value of your Contract on the day we receive proof of Death [$120,000],


APP I-4
 
 
 

•
The lesser of (a) total Premium Payments adjusted for any partial Surrenders [$57,857 (see Example 1 under Premium Security Death Benefit)] or (b) Your Contract Value on the day we calculate the Death Benefit, plus 25% of Your total Premium Payments adjusted for any partial Surrenders and excluding any subsequent Premium Payments we receive within 12 months of death [$120,000 + 25% × $57,857 = $134,464]; the lesser (a) and (b) is $57,857.
•
The lesser of (a) Your Maximum Anniversary Value [$83,571 (see Example 1 under Premium Security Death Benefit)] and (b) Your Contract Value on the day we receive proof of Death plus 25% of Your Maximum Anniversary Value excluding any subsequent Premium Payments we receive within 12 months of death [$120,000 + 25% ($83,571) = $140,893]; the lesser (a) and (b) is $83,571.
The Asset Protection Death Benefit is the greatest of these three values, which is $120,000.

Principal First
Example 1: Assume you select this rider when you purchase your Contract and your initial Premium Payment is $100,000.
•
Your Benefit Amount is $100,000, which is your initial Premium Payment.
•
Your Benefit Payment is $7,000, which is 7% of your Benefit Amount.
Example 2: If you make an additional Premium Payment of $50,000, then
•
Your Benefit Amount is $150,000, which is your prior Benefit Amount ($100,000) plus your additional Premium Payment ($50,000).
•
Your Benefit Payment is $10,500, which is your prior Benefit Payment ($7,000) plus 7% of your additional Premium Payment ($3,500).
Example 3: Assume the same facts as Example 1. If you take the maximum Benefit Payment before the end of the first Contract Year, then
•
Your Benefit Amount becomes $93,000, which is your prior Benefit Amount ($100,000) minus the Benefit Payment ($7,000).
•
Your Benefit Payment for the next year remains $7,000, because you did not take more than your maximum Benefit Payment ($7,000).
Example 4: Assume the same facts as Example 1. If you Surrender $50,000, and your Contract Value is $150,000 at the time of the Surrender, then
We recalculate your Benefit Amount by comparing the results of two calculations:
•
First we deduct the amount of the Surrender ($50,000) from your Contract Value ($150,000). This equals $100,000 and is your “New Contract Value.”
•
Second, we deduct the amount of the Surrender ($50,000) from your Benefit Amount ($100,000). This is $50,000 and is your “New Benefit Amount.”
Since the New Contract Value ($100,000) is more than or equal to the New Benefit Amount ($50,000), and it is more than or equal to your Premium Payments invested in the Contract before the Surrender ($100,000), the Benefit Payment is unchanged and remains $7,000.
Example 5: Assume the same facts as Example 1. If you Surrender $60,000, and your Contract Value is $150,000 at the time of the Surrender, then
We recalculate your Benefit Amount by comparing the results of two calculations:
•
First we deduct the amount of the Surrender ($60,000) from your Contract Value ($150,000). This equals $90,000 and is your “New Contract Value.”
•
Second, we deduct the amount of the Surrender ($60,000) from your Benefit Amount ($100,000). This is $40,000 and is your “New Benefit Amount.”
Since the New Contract Value ($90,000) is more than or equal to the New Benefit Amount ($40,000), but less than the Premium Payments invested in the Contract before the Surrender ($100,000), the Benefit Payment is reduced. The new Benefit Payment is 7% of the greater of your New Contract Value and New Benefit Amount, which is $6,300.
Example 6: Assume the same facts as Example 1. If you Surrender $50,000, and your Contract Value is $80,000 at the time of the Surrender, then
We recalculate your Benefit Amount by comparing the results of two calculations:
•
First we deduct the amount of the Surrender ($50,000) from your Contract Value ($80,000). This equals $30,000 and is your “New Contract Value.”
•
Second, we deduct the amount of the Surrender ($50,000) from your Benefit Amount ($100,000). This is $50,000 and is your “New Benefit Amount.”


APP I-5
 
 
 

Since the New Contract Value ($30,000) is less than the New Benefit Amount ($50,000), your “New Benefit Amount” becomes the New Contract Value ($30,000), as we have to recalculate your Benefit Payment.
We recalculate the Benefit Payment by comparing the “old” Benefit Payment ($7,000) to 7% of the New Benefit Amount ($2,100). Your Benefit Payment becomes the lower of those two values, or $2,100.
Example 7: If you elect to “step up” this rider after the 5th year, assuming you have made no withdrawals, and your Contract Value at the time of step up is $200,000, then
•
We recalculate your Benefit Amount to equal your Contract Value, which is $200,000.
•
Your new Benefit Payment is equal to 7% of your new Benefit Amount, or $14,000.
Principal First Preferred
Example 1: Assume you select this rider when you purchase your Contract and your initial Premium Payment is $100,000.
•
Your Benefit Amount is $100,000, which is your initial Premium Payment.
•
Your Benefit Payment is $5,000, which is 5% of your Benefit Amount.
Example 2: If you make an additional Premium Payment of $50,000, then
•
Your Benefit Amount is $150,000, which is your prior Benefit Amount ($100,000) plus your additional Premium Payment ($50,000).
•
Your Benefit Payment is $7,500, which is your new Benefit Amount ($150,000) multiplied by 5%.
Example 3: Assume the same facts as Example 1. If you take the maximum Benefit Payment before the end of the first Contract Year, then
•
Your Benefit Amount becomes $95,000, which is your prior Benefit Amount ($100,000) minus the Benefit Payment ($5,000).
•
Your Benefit Payment for the next year remains $5,000, because you did not take more than your maximum Benefit Payment ($5,000).
Example 4: Assume the same facts as Example 1. If you Surrender $50,000, and your Contract Value is $150,000 at the time of the Surrender, then
We recalculate your Benefit Amount by comparing the results of two calculations and taking the lesser of the two:
•
First we deduct the amount of the Surrender ($50,000) from your Contract Value ($150,000). This equals $100,000 and is your “New Contract Value.”
•
Second, we deduct the amount of the Surrender ($50,000) from your Benefit Amount ($100,000). This is $50,000 and is your “New Benefit Amount.”
Since the New Contract Value ($100,000) is more than or equal to the New Benefit Amount ($50,000), and it is more than or equal to your Premium Payments invested in the Contract before the Surrender ($100,000), the Benefit Payment is unchanged and remains $5,000.
Example 5: Assume the same facts as Example 1. If you Surrender $60,000, and your Contract Value is $150,000 at the time of the Surrender, then
We recalculate your Benefit Amount by comparing the results of two calculations:
•
First we deduct the amount of the Surrender ($60,000) from your Contract Value ($150,000). This equals $90,000 and is your “New Contract Value.”
•
Second, we deduct the amount of the Surrender ($60,000) from your Benefit Amount ($100,000). This is $40,000 and is your “New Benefit Amount.”
Since the New Contract Value ($90,000) is more than or equal to the New Benefit Amount ($40,000), but less than the Premium Payments invested in the Contract before the Surrender ($100,000), the Benefit Payment is reduced. The new Benefit Payment is 5% of the greater of your New Contract Value and New Benefit Amount, which is $4,500.
Example 6: Assume the same facts as Example 1. If you Surrender $50,000, and your Contract Value is $80,000 at the time of the Surrender, then
We recalculate your Benefit Amount by comparing the results of two calculations and taking the lesser of the two:
•
First we deduct the amount of the Surrender ($50,000) from your Contract Value ($80,000). This equals $30,000 and is your “New Contract Value.”
•
Second, we deduct the amount of the Surrender ($50,000) from your Benefit Amount ($100,000). This is $50,000 and is your “New Benefit Amount.”
Since the New Contract Value ($30,000) is less than the New Benefit Amount ($50,000), your “New Benefit Amount” becomes the New Contract Value ($30,000), as we have to recalculate your Benefit Payment.
We recalculate the Benefit Payment by comparing the “old” Benefit Payment ($5,000) to 5% of the New Benefit Amount ($1,500). Your Benefit Payment becomes the lower of those two values, or $1,500.


APP I-6
 
 
 

Lifetime Income Builder
For all examples Your Guaranteed Minimum Death Benefit is the greater of the Benefit Amount and the Contract Value on the date of due proof of death.
Example 1: Assume you select this rider when you purchase your Contract, you are younger than age 60, and your initial Premium Payment is $100,000.
•
Your Benefit Amount is $100,000, which is your initial Premium Payment.
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Your Benefit Payment is $5,000, which is 5% of your Benefit Amount.
•
Your Lifetime Benefit Payment is zero. The Lifetime Benefit Payment will be set equal to the Benefit Amount multiplied by 5% on the Contract Anniversary immediately following the Older Owner’s 60th birthday.
Example 2: Assume the same facts as Example 1. Also assume that you make no additional premium payments and take no withdrawals during the first Contract Year and that the Contract Value on your first anniversary is $105,000.
•
At the anniversary, we calculate the automatic Benefit Amount Increase. The ratio is the Contract Value ($105,000) divided by the Maximum Contract Value ($100,000), less 1 subject to a minimum of 0% and a maximum of 10%.
•
($105,000 / $100,000) – 1 = .05 = 5%.
•
Your Benefit Amount is $105,000, which is your previous Benefit Amount plus the automatic Benefit Amount increase.
•
Your Benefit Payment is $5,250, which is 5% of your Benefit Amount.
•
The annual charge for this rider is 75 bps of the Benefit Amount after the automatic increase calculation.
•
$105,000 × .0075 = $787.50, this amount is deducted from the Contract Value.
Example 3: Assume the same facts as Example 1. Also assume that you take a $1,000 partial Surrender in the first Contract Year and that the Contract Value on your first anniversary is $95,000.
•
Your initial Benefit Amount is $100,000.
•
Your Benefit Payment is $5,000.
•
After the partial Surrenders of $1,000, your Benefit Amount is $99,000.
•
There is no change to the annual Benefit Payment since the partial Surrender is less than the Benefit Payment.
•
At the anniversary, we calculate the automatic Benefit Amount Increase. The ratio is the Contract Value ($99,000) divided by the Maximum Contract Value ($100,000), less 1 subject to a minimum of 0% and a maximum of 10%.
•
($99,000/$100,000) - 1 = -.01 subject to the minimum of 0%
•
Your Benefit Amount is $99,000, which is your previous Benefit Amount since the automatic Benefit Amount increase was 0%.
•
Your Benefit Payment will remain at $5,000. Because your Benefit Amount did not increase because of the automatic Benefit Amount increase provision on the anniversary, the Benefit Payment will not increase. And because the remaining Benefit Amount ($99,000) is not less than the Benefit Payment immediately prior to the anniversary, the Benefit Payment will not be reduced.
•
The annual charge for this rider is 75 bps of the Benefit Amount after the automatic increase calculation.
•
$99,000 × .0075 = $742.50, this amount is deducted from the Contract Value.
Example 4: Assume the same facts as Example 3. Assume that an additional premium payment of $20,000 is made in Contract Year 2 and that, just prior to the payment, the Contract Value was $96,000.
•
At the beginning of Contract Year 2, your initial Benefit Amount is $99,000.
•
Your Benefit Payment is $5,000.
•
Your Benefit Amount after the premium payment is $119,000.
•
Your Benefit Payment is $5,950, which is 5% of your Benefit Amount.
Example 5: Assume the same facts as Example 4. Assume that at the on the following anniversary (the end of Contract Year 2) the Contract Value is $118,000 and that no withdrawals were taken in Contract Year 2.
•
After premium payment, your Benefit Amount is $119,000.
•
Your Benefit Payment is $5,950.
•
At the anniversary, we calculate the automatic Benefit Amount Increase. The ratio is the Contract Value ($118,000) divided by the Maximum Contract Value ($120,000), less 1 subject to a minimum of 0% and a maximum of 10%.
•
($118,000 / $120,000) – 1 = –.01667 subject to a minimum of 0%
•
Your Benefit Amount is $119,000, which is your previous Benefit Amount since the automatic Benefit Amount increase is 0%.
•
Your Benefit Payment is $5,950, which is 5% of your Benefit Amount.
•
The annual charge for ths rider is 75 bps of the Benefit Amount after the automatic increase calculation.


APP I-7
 
 
 

•
$119,000 × .0075 = $892.50, this amount is deducted from the Contract Value.
Example 6: Assume the same facts as Example 5. Assume that in the third Contract Year, a $35,000 partial Surrender is taken. The partial Surrender includes a Contingent Deferred Sales Charge. The withdrawal lowered the Contract Value from $115,000 to $80,000.
•
At the beginning of Contract Year 3, your initial Benefit Amount is $119,000.
•
Your Benefit Payment is $5,950.
•
Since the total partial Surrender exceeds the Benefit Payment, the Benefit Amount is reset to the lesser of (i) or (ii) as follows
•
(i) the Contract Value immediately following the partial withdrawal: $80,000.
•
(ii) the Benefit Amount prior to the partial Surrender, less the amount of the Surrender: $119,000 – $35,000 =$84,000.
•
Your new Benefit Amount is $80,000.
•
Your new Benefit Payment is $4,000, which is 5% of the new Benefit Amount.
Example 7: Assume that on the Contract Anniversary immediately following the Older Owner’s 60th birthday, the Contract Value is $200,000.
•
Your Benefit Amount after the automatic increase calculation is $200,000.
•
Your Lifetime Benefit Payment is $10,000 which is 5% of your Benefit Amount.
•
The annual charge for this rider is 75 bps of the Benefit Amount after the automatic increase calculation.
•
$200,000 × .0075 = $1500, this amount is deducted from the Contract Value.
Example 8: Assume the owner withdraws $9,000 when, just prior to the partial Surrender, the Benefit Payment is$10,000; the Lifetime Benefit Payment is $7,000; the Benefit Amount $80,000 and the Contract Value is $85,000.
•
Your Benefit Amount is $80,000 before the partial Surrender.
•
Your Benefit Amount after the partial Surrender is $71,000, since the partial Surrender is less than your Benefit Payment.
•
There is no change to the annual Benefit Payment since the partial Surrender is less than the Benefit Payment.
•
Your Lifetime Benefit Payment will be reset to $3,550 which is 5% of the Benefit Amount after the partial Surrender. This reset occurs because partial Surrender is greater than the annual Lifetime Benefit Payment.
Example 9: Assume the owner withdraws $12,000 when, just prior to the partial Surrender, the Benefit Payment is$10,000; the Lifetime Benefit Payment is $7,000; the Benefit Amount $80,000 and the Contract Value is $85,000.
•
Your Benefit Payment is $80,000 before the partial Surrender.
•
Your Benefit Amount after the partial Surrender is $68,000.
•
It is the lesser of Contract Value after the partial Surrender ($73,000) and the Benefit Amount immediately prior the partial Surrender, less the partial Surrender amount ($68,000). This comparison is done because the partial Surrender is greater than your Benefit Payment.
•
Your Benefit Amount will reset to $3,400 which is 5% of the Benefit Amount after the partial Surrenders. This reset occurs because the partial Surrender is greater than the annual Benefit Payment.
•
Your Lifetime Benefit Payment will reset to $3,400 which is 5% of the Benefit Amount after the partial Surrender. This reset occurs because partial Surrender is greater that the annual Lifetime Benefit Payment.
Example 10:  Assume the same facts as Example 1.  Also assume that you take a $5,000 partial Surrender in the first, second and third Contract Years and that the Contract Value on your third Anniversary is $80,000.  Assume that an additional Premium Payment of $6,000 is made on the third Anniversary.
•
Your initial Benefit Amount was $100,000 prior to the partial Surrenders.
•
After partial Surrenders of $5,000 in each of the first three policy years, your Benefit Amount is $85,000.
•
The Benefit Amount after the additional Premium Payment is $91,000 = $85,000 + $6,000.
•
Your Benefit Payment will be reset upon the additional Premium Payment to $4,550 = 5% * $91,000.  The Benefit Payment is now lower after the subsequent Premium Payment was made.


APP I-8
 
 
 

Lifetime Income Foundation
Example 1: Assume you select Single Life Option when you purchase your Contract, the older Covered Life is less than age 60, and your initial Premium Payment is $100,000.
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Your Payment Base is $100,000, which is your initial Premium Payment.
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Your Threshold is $5,000, which is 5% of your Payment Base.
•
Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender.
•
Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment.
Example 2: Assume you select Joint/Spousal Option when you purchase your Contract, the younger Covered Life is less than age 60, and your initial Premium Payment is $100,000.
•
Your Payment Base is $100,000, which is your initial Premium Payment.
•
Your Threshold is $4,500, which is 4.5% of your Payment Base.
•
Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender.
•
Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment.
Example 3: Assume you select Single Life Option when you purchase your Contract, the older Covered Life is age 60, and your initial Premium Payment is $100,000.
•
Your Payment Base is $100,000, which is your initial Premium Payment.
•
Your Withdrawal Percent is 5%, which is based on your age.
•
Your Lifetime Benefit Payment is $5,000, which is 5% of your Payment Base.
•
Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment.
Example 4: Assume the same contract issue facts as Example 3, however your first partial Surrender is taken at age 70. Your Withdrawal Percent is 6% based on your age. Your Contract Value on the most recent Contract Anniversary is $105,000.
•
Your Lifetime Benefit Payment is $6,300, which is the product of your Withdrawal Percent multiplied by $105,000, which is the greater of your Contract Value on the most recent Contract Anniversary and your Payment Base.
•
You take a partial Surrender of $6,000.
•
Your Payment Base remains at $100,000, since the withdrawal did not exceed your Lifetime Benefit Payment.
•
Your Withdrawal Percent will remain at 6% for the duration of your Contract; this is based on your age on the most recent Contract Anniversary prior to your first partial Surrender.
•
Your remaining Lifetime Benefit Payment for the Contract Year is $300.
•
Your Contract Value after the withdrawal is $99,000.
•
Your Guaranteed Minimum Death Benefit is $94,000, which is your prior Death Benefit reduced by the amount of the withdrawal.
Example 5: Assume you select Joint/Spousal Option when you purchase your Contract, the younger Covered Life is age 60, and your initial Premium Payment is $100,000.
•
Your Payment Base is $100,000, which is your initial Premium Payment.
•
Your Withdrawal Percent is 4.5%, which is based on your age.
•
Your Lifetime Benefit Payment is $4,500, which is 4.5% of your Payment Base.
•
Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment.
Example 6: Assume the same contract issue facts as Example 5, however your first partial Surrender at age 70. Your Withdrawal Percent is 5.5% based on your age. Your Contract Value on the most recent Contract Anniversary is $106,500.
•
Your Lifetime Benefit Payment is $5,857.50, which is the product of your Withdrawal Percent multiplied by $106,500, which is the greater of your Contract Value on the most recent Contract Anniversary and your Payment Base.
•
You take a partial Surrender of $5,500.
•
Your Payment Base remains at $100,000, since the withdrawal did not exceed your Lifetime Benefit Payment.
•
Your Withdrawal Percent will remain at 5.5% for the duration of your Contract; this is based on your age on the most recent Contract Anniversary prior to your first partial Surrender.
•
Your remaining Lifetime Benefit Payment for the Contract Year is $357.50.
•
Your Contract Value after the withdrawal is $101,000.
•
Your Guaranteed Minimum Death Benefit is $94,500, which is your prior Death Benefit reduced by the withdrawal.


APP I-9
 
 
 

Example 7: Assume the same facts as example 1 (Single Life). Also assume that you take a $1,000 partial Surrender in the first Contract Year and that the Contract Value on your first anniversary is $95,000.
Prior to the Surrender:
•
Your initial Payment Base is $100,000.
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Your Threshold is $5,000.
•
Your Guaranteed Minimum Death Benefit is $100,000.
After the Surrender:
•
Your Payment Base is $99,000, which is your prior Payment Base reduced by the amount of the partial Surrender.
•
Your Withdrawal Percentage, used to determine Lifetime Benefit Payments when you are in an Eligible Withdrawal Year, will remain at 5% for the duration of your Contract.
•
Your remaining Threshold amount for the Contract Year is $4,000, which is your prior Threshold amount reduced by the amount of the partial Surrender.
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The annual charge for this rider is 0.30% of the Payment Base.
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$99,000 × 0.30% = $297, this amount is deducted from the Contract Value.
•
Your Guaranteed Minimum Death Benefit is $99,000, which is your prior Death Benefit reduced by the amount of the partial Surrender.
Example 8: Assume the same facts as example 2 (Joint/Spousal). Also assume that you take a $1,000 partial Surrender in the first Contract Year and that the Contract Value on your first anniversary is $95,000.
Prior to the Surrender:
•
Your initial Payment Base is $100,000.
•
Your Threshold is $4,500.
•
Your Guaranteed Minimum Death Benefit is $100,000.
After the Surrender:
•
Your Payment Base is $99,000, which is your prior Payment Base reduced by the amount of the partial Surrender.
•
Your Withdrawal Percentage, used to determine Lifetime Benefit Payments when you are in an Eligible Withdrawal Year, will remain at 4.5% for the duration of your Contract.
•
Your remaining Threshold amount for the Contract Year is $3,500, which is your prior Threshold amount reduced by the amount of the partial Surrender.
•
The annual charge for this rider is 0.30% of the Payment Base.
•
$99,000 × 0.30% = $297, this amount is deducted from the Contract Value.
•
Your Guaranteed Minimum Death Benefit is $99,000, which is your prior Death Benefit reduced by the amount of the partial Surrender.
Example 9: Assume the same facts as Example 7 (Single Life). Assume that an additional Premium Payment of $20,000 is made in Contract Year 2, just prior to the payment, the Contract Value was $96,000.
Prior to the Premium Payment:
•
At the beginning of Contract Year 2, your initial Payment Base is $99,000.
•
Your Threshold amount is $4,950.
•
Your Guaranteed Minimum Death Benefit is $99,000.
After the Premium Payment:
•
Your Payment Base is $119,000, which is your prior Payment Base increased by the amount of the Premium Payment.
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Your Threshold amount is $5,950, which is 5% of the greater the sum of your Contract Value on the most recent Contract Anniversary plus any subsequent Premium Payments or your Payment Base immediately following the Premium Payment.
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Payment or your Payment Base immediately following the Premium Payment.
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Your Guaranteed Minimum Death Benefit is $119,000, which is your prior Death Benefit increased by the amount of the Premium Payment.
Example 10: Assume the same facts as Example 8 (Joint/Spousal). Assume that an additional Premium Payment of $20,000 is made in Contract Year 2, just prior to the payment, the Contract Value was $96,000.
Prior to the Premium Payment:
•
At the beginning of Contract Year 2, your initial Payment Base is $99,000.
•
Your Threshold amount is $4,455.
•
Your Guaranteed Minimum Death Benefit is $99,000.


APP I-10
 
 
 

After the Premium Payment:
•
Your Payment Base is $119,000, which is your prior Payment Base increased by the amount of the Premium Payment.
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Your Threshold amount is $5,355, which is 4.5% of the the sum of your Contract Value on the most recent Contract Anniversary plus any subsequent Premium Payments or your Payment Base immediately following the Premium Payment.
•
Your Guaranteed Minimum Death Benefit is $119,000, which is your prior Death Benefit increased by the amount of the Premium Payment.
Example 11: Assume the older Covered Life is 74 (Single Life). Assume the Owner makes the first partial Surrender under the Contract of $3,300 when, just prior to the partial Surrender, the Payment Base is $50,000; the Contract Value (on Anniversary) is $55,000; the Withdrawal Percent is 6%; the Guaranteed Minimum Death Benefit is $50,000; the Lifetime Benefit Payment is 6% multiplied by the greater of the Payment Base or Contract Value, or $3,300.
After the partial Surrender:
•
Your Payment Base remains at $50,000, which is the Payment Base prior to the partial Surrender, since the partial Surrender did not exceed your Lifetime Benefit Payment.
•
Your Withdrawal Percent is 6% for the duration of your Contract.
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Your Lifetime Benefit Payment for the remainder of the Contract Year is $0.
•
Your Guaranteed Minimum Death Benefit is $46,700, which is your prior Death Benefit reduced by the amount of the partial Surrender
Example 12: Assume the younger Covered Life is 74 (Joint/Spousal). Assume the owner makes the first partial Surrender under the Contract of $3,025 when, just prior to the partial Surrender, the Payment Base is $50,000; the Contract Value (on Anniversary) is $55,000; the Withdrawal Percent is 5.5%; the Guaranteed Minimum Death Benefit is $50,000; the Lifetime Benefit Payment is 5.5% multiplied by the greater of Payment Base or Contract Value, or $3,025.
After the partial Surrender:
•
Your Payment Base remains at $50,000, which is the Payment Base prior to the partial Surrender, since the partial Surrender did not exceed your Lifetime Benefit Payment.
•
Your Withdrawal Percent is 5.5% for the duration of your Contract.
•
Your Lifetime Benefit Payment for the remainder of the Contract Year is $0.
•
Your Guaranteed Minimum Death Benefit is $46,975, which is your prior Death Benefit reduced by the amount of the partial Surrender.
Example 13: Assume the same facts as Example 11 (Single Life). Assume that a second partial Surrender is taken in the same Contract Year for $1,000; the Contract Value prior to the partial Surrender is $52,000; the Contract Value after the partial Surrender is $51,000.
Prior to the partial Surrender:
•
Your Payment Base is $50,000.
•
Your Withdrawal Percent was previously locked in at 6%.
•
Your remaining Lifetime Benefit Payment for this Contract Year is $0.
•
Your Guaranteed Minimum Death Benefit is $46,700.
After the partial Surrender:
•
Your Payment Base is $49,038, which is calculated by determining the proportional reduction 1 – (Surrender exceeding the Lifetime Benefit Payment/Contract Value prior to the Surrender); then this factor is multiplied by the prior Payment Base.
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Your Lifetime Benefit Payment remaining for the Contract Year is $0.
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Your Guaranteed Minimum Death Benefit is $45,802, which is calculated by determining the proportional reduction 1 – (Surrender exceeding the Lifetime Benefit Payment /Contract Value prior to the Surrender); then this factor is multiplied by the prior Death Benefit.
Example 14: Assume the same facts as Example 12 (Joint/Spousal). Assume that a second partial Surrender is taken in the same Contract Year for $2,000; the Contract Value prior to the partial Surrender is $49,000; the Contract Value after the partial Surrender is $47,000.
Prior to the partial Surrender:
•
Your Payment Base is $50,000.
•
Your Withdrawal Percent was previously locked in at 5.5%.
•
Your remaining Lifetime Benefit Payment for this Contract Year is $0.
•
Your Guaranteed Minimum Death Benefit is $46,975.


APP I-11
 
 
 

After the partial Surrender:
•
Your new Payment Base is $47,959, which is calculated by determining the proportional reduction 1 – (Surrender exceeding the Lifetime Benefit Payment /Contract Value prior to the Surrender); then this factor is multiplied by the prior Payment Base.
•
Your Lifetime Benefit Payment remaining for the Contract Year is $0.
•
Your Guaranteed Minimum Death Benefit is $45,058, which is calculated by determining the proportional reduction 1 – (Surrender exceeding the Lifetime Benefit Payment /Contract Value prior to the Surrender); then this factor is multiplied by the prior Death Benefit.

Lifetime Income Builder II
Example 1: Assume you select Single Life Option when you purchase your Contract, the older Covered Life is less than age 60, and your initial Premium Payment is $100,000.
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Your Payment Base is $100,000, which is your initial Premium Payment.
•
Your Threshold is $5,000, which is 5% of your Payment Base.
•
Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender.
•
Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment.
Example 2: Assume you select Joint/Spousal Option when you purchase your Contract, the younger Covered Life is less than age 60, and your initial Premium Payment is $100,000.
•
Your Payment Base is $100,000, which is your initial Premium Payment.
•
Your Threshold is $4,500, which is 4.5% of your Payment Base.
•
Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender.
•
Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment.
Example 3: Assume you select Single Life Option when you purchase your Contract, the older Covered Life is age 60, and your initial Premium Payment is $100,000.
•
Your Payment Base is $100,000, which is your initial Premium Payment.
•
Your Withdrawal Percent is 5%, which is based on your age.
•
Your Lifetime Benefit Payment is $5,000, which is 5% of your Payment Base.
•
Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment.
Example 4: Assume the same contract issue facts as Example 3, however your first partial Surrender is taken at age 70. Your Withdrawal Percent is 6% based on your age. Your Contract Value at the beginning of the year is $105,000.
•
Your Lifetime Benefit Payment is $6,300, which is the product of your Withdrawal Percent multiplied by $105,000, which is the greater of your Contract Value at the beginning of the year and your Payment Base.
•
You take a partial Surrender of $6,000.
•
Your Payment Base remains at $100,000, since the withdrawal did not exceed your Lifetime Benefit Payment.
•
Your Withdrawal Percent will remain at 6% for the duration of your Contract; this is based on your age on the most recent Contract Anniversary prior to your first partial Surrender.
•
Your remaining Lifetime Benefit Payment for the Contract Year is $300.
•
Your Contract Value after the withdrawal is $99,000.
•
Your Guaranteed Minimum Death Benefit is $94,000, which is your prior Death Benefit reduced by the amount of the withdrawal.
Example 5: Assume you select Joint/Spousal Option when you purchase your Contract, the younger Covered Life is age 60, and your initial Premium Payment is $100,000.
•
Your Payment Base is $100,000, which is your initial Premium Payment.
•
Your Withdrawal Percent is 4.5%, which is based on your age.
•
Your Lifetime Benefit Payment is $4,500, which is 4.5% of your Payment Base.
•
Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment.
Example 6: Assume the same contract issue facts as Example 5, however your first partial Surrender at age 70. Your Withdrawal Percent is 5.5% based on your age. Your Contract Value at the beginning of the year is $106,500.
•
Your Lifetime Benefit Payment is $5,857.50, which is the product of your Withdrawal Percent multiplied by $106,500, which is the greater of your Contract Value at the beginning of the year and your Payment Base.


APP I-12
 
 
 

•
You take a partial Surrender of $5,500.
•
Your Payment Base remains at $100,000, since the withdrawal did not exceed your Lifetime Benefit Payment.
•
Your Withdrawal Percent will remain at 5.5% for the duration of your Contract; this is based on your age on the most recent Contract Anniversary prior to your first partial Surrender.
•
Your remaining Lifetime Benefit Payment for the Contract Year is $357.50.
•
Your Contract Value after the withdrawal is $101,000.
•
Your Guaranteed Minimum Death Benefit is $94,500, which is your prior Death Benefit reduced by the withdrawal.
Example 7: Assume the same facts as example 1 (Single Life). Also assume that you take a $1,000 partial Surrender in the first Contract Year and that the Contract Value on your first anniversary is $95,000.
Prior to the Surrender:
•
Your initial Payment Base is $100,000.
•
Your Threshold is $5,000.
•
Your Guaranteed Minimum Death Benefit is $100,000.
After the Surrender:
•
At the anniversary, we calculate the automatic Payment Base increase. The ratio is the Contract Value ($95,000) divided by the Maximum Contract Value ($100,000), less 1. Subject to a minimum of 0% and a maximum of 10%.
•
($95,000/$100,000) – 1 = –.05 subject to the minimum of 0%.
•
Your Payment Base is $99,000, which is your prior Payment Base reduced by the amount of the partial Surrender, since the automatic Payment Base increase was 0%.
•
Your Withdrawal Percentage, used to determine Lifetime Benefit Payments when you are in an Eligible Withdrawal Year, will remain at 5% for the duration of your Contract.
•
Your remaining Threshold amount for the Contract Year is $4,000, which is your prior Threshold amount reduced by the amount of the partial Surrender.
•
The annual charge for this rider is 0.75% of the Payment Base after the automatic increase calculation.
•
$99,000 × 0.75% = $742.50, this amount is deducted from the Contract Value.
•
Your Guaranteed Minimum Death Benefit is $99,000, which is your prior Death Benefit reduced by the amount of the partial Surrender.
Example 8: Assume the same facts as example 2 (Joint/Spousal). Also assume that you take a $1,000 partial Surrender in the first Contract Year and that the Contract Value on your first anniversary is $95,000.
Prior to the Surrender:
•
Your initial Payment Base is $100,000.
•
Your Threshold is $4,500.
•
Your Guaranteed Minimum Death Benefit is $100,000.
After the Surrender:
•
At the anniversary, we calculate the automatic Payment Base increase. The ratio is the Contract Value ($95,000) divided by the Maximum Contract Value ($100,000), less 1. Subject to a minimum of 0% and a maximum of 10%.
•
($95,000/$100,000) – 1 = -.05 subject to the minimum of 0%.
•
Your Payment Base is $99,000, which is your prior Payment Base reduced by the amount of the partial Surrender, since the automatic Payment Base increase was 0%.
•
Your Withdrawal Percentage, used to determine Lifetime Benefit Payments when you are in an Eligible Withdrawal Year, will remain at 4.5% for the duration of your Contract.
•
Your remaining Threshold amount for the Contract Year is $3,500, which is your prior Threshold amount reduced by the amount of the partial Surrender.
•
The annual charge for this rider is 0.75% of the Payment Base after the automatic increase calculation.
•
$99,000 × 0.75% = $742.50, this amount is deducted from the Contract Value.
•
Your Guaranteed Minimum Death Benefit is $99,000, which is your prior Death Benefit reduced by the amount of the partial Surrender.
Example 9: Assume the same facts as Example 7 (Single Life). Assume that an additional Premium Payment of $20,000 is made in Contract Year 2, just prior to the payment, the Contract Value was $96,000.
Prior to the Premium Payment:
•
At the beginning of Contract Year 2, your initial Payment Base is $99,000.
•
Your Threshold amount is $4,950.


APP I-13
 
 
 

•
Your Guaranteed Minimum Death Benefit is $99,000.
After the Premium Payment:
•
Your Payment Base is $119,000, which is your prior Payment Base increased by the amount of the Premium Payment.
•
Your Threshold amount is $5,950, which is 5% of the the sum of your Contract Value on the most recent Contract Anniversary plus any subsequent Premium Payments or your Payment Base immediately following the Premium Payment.
•
Your Guaranteed Minimum Death Benefit is $119,000, which is your prior Death Benefit increased by the amount of the Premium Payment.
Example 10: Assume the same facts as Example 8 (Joint/Spousal). Assume that an additional Premium Payment of $20,000 is made in Contract Year 2, just prior to the payment, the Contract Value was $96,000.
Prior to the Premium Payment:
•
At the beginning of Contract Year 2, your initial Payment Base is $99,000.
•
Your Threshold amount is $4,455.
•
Your Guaranteed Minimum Death Benefit is $99,000.
After the Premium Payment:
•
Your Payment Base is $119,000, which is your prior Payment Base increased by the amount of the Premium Payment.
•
Your Threshold amount is $5,355, which is 4.5% of the the sum of your Contract Value on the most recent Contract Anniversary plus any subsequent Premium Payments or your Payment Base immediately following the Premium Payment.
•
Your Guaranteed Minimum Death Benefit is $119,000, which is your prior Death Benefit increased by the amount of the Premium Payment.
Example 11: Assume the older Covered Life is 74 (Single Life). Assume the owner makes the first partial Surrender under the Contract of $3,300 when, just prior to the partial Surrender, the Payment Base is $50,000; the Contract Value (on Anniversary) is $55,000; the Withdrawal Percent is 6%; the Guaranteed Minimum Death Benefit is $50,000; the Lifetime Benefit Payment is 6% multiplied by the greater of the Payment Base or Contract Value, or $3,300.
After the partial Surrender:
•
Your Payment Base remains at $50,000, which is the Payment Base prior to the partial Surrender, since the partial Surrender did not exceed your Lifetime Benefit Payment.
•
Your Withdrawal Percent is 6% for the duration of your Contract.
•
Your Lifetime Benefit Payment for the remainder of the Contract Year is $0.
•
Your Guaranteed Minimum Death Benefit is $46,700, which is your prior Death Benefit reduced by the amount of the partial Surrender.
Example 12: Assume the younger Covered Life is 74 (Joint/Spousal). Assume the owner makes the first partial Surrender under the Contract of $3,025 when, just prior to the partial Surrender, the Payment Base is $50,000; the Contract Value (on Anniversary) is $55,000; the Withdrawal Percent is 5.5%; the Guaranteed Minimum Death Benefit is $50,000; the Lifetime Benefit Payment is 5.5% multiplied by the greater of Payment Base or Contract Value, or $3,025.
After the partial Surrender:
•
Your Payment Base remains at $50,000, which is the Payment Base prior to the partial Surrender, since the partial Surrender did not exceed your Lifetime Benefit Payment.
•
Your Withdrawal Percent is 5.5% for the duration of your Contract.
•
Your Lifetime Benefit Payment for the remainder of the Contract Year is $0.
•
Your Guaranteed Minimum Death Benefit is $46,975, which is your prior Death Benefit reduced by the amount of the partial Surrender.
Example 13: Assume the same facts as Example 11 (Single Life). Assume that a second partial Surrender is taken in the same Contract Year for $1,000; the Contract Value prior to the partial Surrender is $52,000; the Contract Value after the partial Surrender is $51,000.
Prior to the partial Surrender:
•
Your Payment Base is $50,000.
•
Your Withdrawal Percent was previously locked in at 6%.
•
Your remaining Lifetime Benefit Payment for this Contract Year is $0.
•
Your Guaranteed Minimum Death Benefit is $46,700.
After the partial Surrender:


APP I-14
 
 
 

•
Your Payment Base is $49,038, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment/Contract Value prior to the Surrender); then this factor is multiplied by the prior Payment Base.
•
Your Lifetime Benefit Payment remaining for the Contract Year is $0.
•
Your Guaranteed Minimum Death Benefit is $45,802, which is calculated by determining the proportional reduction 1 - (Surrender exceeding the Lifetime Benefit Payment/Contract Value prior to the Surrender); then this factor is multiplied by the prior Death Benefit.
Example 14: Assume the same facts as Example 12 (Joint/Spousal). Assume that a second partial Surrender is taken in the same Contract Year for $2,000; the Contract Value prior to the partial Surrender is $49,000; the Contract Value after the partial Surrender is $47,000.
Prior to the partial Surrender:
•Your Payment Base is $50,000.
•Your Withdrawal Percent was previously locked in at 5.5%.
•Your remaining Lifetime Benefit Payment for this Contract Year is $0.
•Your Guaranteed Minimum Death Benefit is $46,975.
After the partial Surrender:
•
Your new Payment Base is $47,959, which is calculated by determining the proportional reduction 1 – (Surrender exceeding the Lifetime Benefit Payment/Contract Value prior to the Surrender); then this factor is multiplied by the prior Payment Base.
•
Your Lifetime Benefit Payment remaining for the Contract Year is $0.
•
Your Guaranteed Minimum Death Benefit is $45,058, which is calculated by determining the proportional reduction 1 – (Surrender exceeding the Lifetime Benefit Payment/Contract Value prior to the Surrender); then this factor is multiplied by the prior Death Benefit.
Example 15: Assume the same facts as Example 1 (Single Life). Now assume you have reached your first Contract Anniversary. Your Contract Value on the Contract Anniversary is $110,000.
Prior to the Contract Anniversary:
•
Your Payment Base is $100,000, which is your initial Premium Payment.
•
Your Threshold is $5,000, which is 5% of your Payment Base.
•
Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender.
•
Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment.
After the Contract Anniversary:
•
At the anniversary, we calculate the automatic Payment Base increase. The ratio is the Contract Value ($110,000) divided by the Maximum Contract Value ($100,000), less 1. Subject to a minimum of 0% and a maximum of 10%.
•
($110,000/$100,000) – 1 = .10 subject to the maximum of 10%.
•
Your Payment Base is $110,000, which is your prior Payment Base multiplied by the automatic Payment Base increase.
•
Your Threshold amount for the Contract Year is $5,500, which is your new Payment Base multiplied by 5%.
•
Your Guaranteed Minimum Death Benefit remains $100,000, as it is not impacted by the automatic Payment Base increase.
Example 16: Assume the same facts as Example 2 (Joint/Spousal). Now assume you have reached your first Contract Anniversary. Your Contract Value on the anniversary is $105,000.
Prior to the Contract Anniversary:
•
Your Payment Base is $100,000, which is your initial Premium Payment.
•
Your Threshold is $4,500, which is 4.5% of your Payment Base.
•
Your Lifetime Benefit Payment is not calculated. The Lifetime Benefit Payment will be determined in the first Eligible Withdrawal Year in which you take a partial Surrender.
•
Your Guaranteed Minimum Death Benefit is $100,000, which is your initial Premium Payment.
After the Contract Anniversary:
•
At the anniversary, we calculate the automatic Payment Base increase. The ratio is the Contract Value ($105,000) divided by the Maximum Contract Value ($100,000), less 1. Subject to a minimum of 0% and a maximum of 10%.
•
($105,000/$100,000) – 1 = .05 subject to the maximum of 10%.
•
Your Payment Base is $105,000, which is your prior Payment Base multiplied by the automatic Payment Base increase.


APP I-15
 
 
 

•
Your Threshold amount for the Contract Year is $4,725, which is your new Payment Base multiplied by 4.5%.
•
Your Guaranteed Minimum Death Benefit remains $100,000, as it is not impacted by the automatic Payment Base increase.
Example 17: Spousal Contract Continuation
On date of Spousal Contract continuation, we increase the Contract Value to equal the Death Benefit (if greater). For illustration purposes, we will assume the Contract Value on the date of continuation is set equal to the Death Benefit of $150,000 and the Payment Base is $125,000. The values for the rider are impacted as follows:
Payment Base = $150,000 (greater of Contract Value or Payment Base on date of continuation)
WP = existing Withdrawal Percent if partial Surrender have been taken, or else it is set using the remaining Spouse’s attained age on the Contract Anniversary prior to the first partial Surrender (for this example we will say it is 6%).
Lifetime Benefit Payment = $9,000 (WP × greater of Payment Base or Contract Value on date of continuation)
Death Benefit = $150,000 (Contract Value on date of continuation)
Maximum Contract Value (LIB II Only) = $150,000 (Contract Value on date of continuation)
Lifetime Income Builder Selects and Lifetime Income Builder Portfolios
Example 1: Assume you select Single Life Option when you purchase your Contract, the older Covered Life is less than age 60, and your initial Premium Payment is $100,000.
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$100,000
$100,000

Equal to your initial Premium Payment
Equal to your initial Premium Payment
Threshold
$5,000
$5,000

5% of your Payment Base
5% of your Payment Base
Lifetime Benefit Payment
N/A
N/A
Guaranteed Minimum Death Benefit
$100,000
$100,000

Equal to your initial Premium Payment
Equal to your initial Premium Payment
Example 2: Assume you select Joint/Spousal Option when you purchase your Contract, the younger Covered Life is less than age 60, and your initial Premium Payment is $100,000.
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$100,000
$100,000

Equal to your initial Premium Payment
Equal to your initial Premium Payment
Threshold
$4,500
$4,500

4.5% of your Payment Base
4.5% of your Payment Base
Lifetime Benefit Payment
N/A
N/A
Guaranteed Minimum Death Benefit
$100,000
$100,000

Equal to your initial Premium Payment
Equal to your initial Premium Payment
Example 3: Assume you select Single Life Option when you purchase your Contract, the older Covered Life is age 60, and your initial Premium Payment is $100,000.


APP I-16
 
 
 

Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$100,000
$100,000

Equal to your initial Premium Payment
Equal to your initial Premium Payment
Withdrawal Percent
5%
5%

Based on your age
Based on your age
Lifetime Benefit Payment
$5,000
$5,000

5% of your Payment Base
5% of your Payment Base
Guaranteed Minimum Death Benefit
$100,000
$100,000

Equal to your initial Premium Payment
Equal to your initial Premium Payment
Example 4: Assume the same contract issue facts as Example 3 (Single Life), however your first partial Surrender is taken at age 70. Your Withdrawal Percent is 6% based on your age. Your Contract Value at the beginning of the year is $105,000. Your Contract Value upon attaining age 70 is $105,500.
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$105,000
$105,000
Lifetime Benefit Payment
$6,330
$6,300

Withdrawal Percent multiplied by the greater of your Payment Base or Contract Value upon attaining age 70
Withdrawal Percent multiplied by your Payment Base
You take a partial Surrender of $6,000, values after the partial Surrender:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$105,000
$105,000
Withdrawal Percent
6%(1)
6%(1)
Lifetime Benefit Payment
$330
$300

Remaining for Contract Year
Remaining for Contract Year
Contract Value after the withdrawal
$99,000
$99,000
Guaranteed Minimum Death Benefit
$94,000
$94,000

Prior Death Benefit reduced by the withdrawal
Prior Death Benefit reduced by the withdrawal
Example 5: Assume you select Joint/Spousal Option when you purchase your Contract, the younger Covered Life is age 60, and your initial Premium Payment is $100,000.
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$100,000
$100,000

Equal to your initial Premium Payment
Equal to your initial Premium Payment
Withdrawal Percent
4.5%
4.5%

Based on your age
Based on your age
Lifetime Benefit Payment
$4,500
$4,500

4.5% of your Payment Base
4.5% of your Payment Base
Guaranteed Minimum Death Benefit
$100,000
$100,000

Equal to your initial Premium Payment
Equal to your initial Premium Payment
(1)
The Withdrawal Percentage will remain for the duration of your Contract unless an automatic Payment Base increase occurs on a future anniversary and a new Withdrawal Percent age band is applicable; if no automatic Payment Base increase occurs on a future anniversary where a new Withdrawal Percent age band is applicable, your Withdrawal Percent will remain as is.


APP I-17
 
 
 

Example 6: Assume the same contract issue facts as Example 5 (Joint/Spousal), however your first partial Surrender is taken at age 70. Your Withdrawal Percent is 5.5% based on your age. Your Contract Value at the beginning of the Contract Year is $110,000. Your Contract Value upon attaining age 70 is $111,000.
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$110,000
$110,000
Lifetime Benefit Payment
$6,105
$6,050

Withdrawal Percent multiplied by the greater of your Payment Base or Contract Value upon attaining age 70
Withdrawal Percent multiplied by your Payment Base
You take a partial Surrender of $6,000, values after the partial Surrender:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$110,000
$110,000
Withdrawal Percent
5.5% (1)
5.5%(1)
Lifetime Benefit Payment
$105
$50

Remaining for Contract Year
Remaining for Contract Year
Contract Value after the withdrawal
$105,000
$105,000
Guaranteed Minimum Death Benefit
$94,000
$94,000

Prior Death Benefit reduced by withdrawal
Prior Death Benefit reduced by the withdrawal
Example 7: Assume the same facts as example 1 (Single Life). Also assume that you take a $1,000 partial Surrender in the first Contract Year and that the Contract Value prior to the rider charge being deducted on your first anniversary is $95,000.
Values prior to the partial Surrender:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$100,000
$100,000
Threshold
$5,000
$5,000
Guaranteed Minimum Death Benefit
$100,000
$100,000
Values after the partial Surrender:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$99,000
$99,000

Prior Payment Base reduced by withdrawal
Prior Payment Base reduced by withdrawal
Withdrawal Percent
5%(1)
5%(1)
Threshold
$4,000
$4,000

Remaining for the Contract Year
Remaining for the Contract Year
Guaranteed Minimum Death Benefit
$99,000
$99,000

Prior Death Benefit reduced by the withdrawal
Prior Death Benefit reduced by the withdrawal


APP I-18
 
 
 

Values after the anniversary processing:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$99,000
$99,000

The ratio is the Contract Value ($95,000) divided by your current Payment Base ($99,000), less 1
Greater of the Contract Value prior to the rider charge being taken, or

Resulting in 4%, subject to minimum of 0%, No change to the Payment Base
Your current Payment Base
Threshold
$4,950
$4,950

5% of your Payment Base
5% of your Payment Base
Rider Charge
$841.50
$1,138.50

Rider charge of 0.85% multiplied by your current Payment Base
Rider charge of 1.15% multiplied by your current Payment Base
Guaranteed Minimum Death Benefit
$99,000
$99,000

No change due to anniversary processing
No change due to anniversary processing
Example 8: Assume the same facts as example 1 (Single Life). Also assume that you take a $1,000 partial Surrender in the first Contract Year and that the Contract Value prior to the rider charge being deducted on your first anniversary is $105,000.
Values prior to the partial Surrender:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$100,000
$100,000
Threshold
$5,000
$5,000
Guaranteed Minimum Death Benefit
$100,000
$100,000
Values after the partial Surrender:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$99,000
$99,000

Prior Payment Base reduced by withdrawal
Prior Payment Base reduced by withdrawal
Withdrawal Percent
5%(1)
5%(1)
Threshold
$4,000
$4,000

Remaining for the Contract Year
Remaining for the Contract Year
Guaranteed Minimum Death Benefit
$99,000
$99,000

Prior Death Benefit reduced by the withdrawal
Prior Death Benefit reduced by the withdrawal
Values after the anniversary processing:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$105,000
$105,000

The ratio is the Contract Value ($105,000) divided by your current Payment Base ($99,000), less 1
Greater of the Contract Value prior to the rider charge being taken, or

Resulting in 6%, subject to minimum of 0% and maximum of 10%
Your current Payment Base


APP I-19
 
 
 

Threshold
$5,250
$5,250

5% of your Payment Base
5% of your Payment Base
Rider Charge
$892.50
$1,207.50

Rider charge of 0.85% multiplied by your current Payment Base
Rider charge of 1.15% multiplied by your current Payment Base
Guaranteed Minimum Death Benefit
$99,000
$99,000

No change due to anniversary processing
No change due to anniversary processing
Example 9: Assume the same facts as example 2 (Joint/Spousal). Also assume that you take a $1,000 partial Surrender in the first Contract Year and that the Contract Value prior to the rider charge being deducted on your first anniversary is $95,000.
Values prior to the partial Surrender:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$100,000
$100,000
Threshold
$4,500
$4,500
Guaranteed Minimum Death Benefit
$100,000
$100,000
Values after the partial Surrender:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$99,000
$99,000

Prior Payment Base reduced by withdrawal
Prior Payment Base reduced by withdrawal
Withdrawal Percent
4.5%(1)
4.5%(1)
Threshold
$3,500
$3,500

Remaining for the Contract Year
Remaining for the Contract Year
Guaranteed Minimum Death Benefit
$99,000
$99,000

Prior Death Benefit reduced by the withdrawal
Prior Death Benefit reduced by the withdrawal
Values after the anniversary processing:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$99,000
$99,000

The ratio is the Contract Value ($95,000) divided by your current Payment Base ($99,000), less 1
Greater of the Contract Value prior to the rider charge being taken, or

Resulting in 4%, subject to minimum of 0%, No change to the Payment Base
Your current Payment Base
Threshold
$4,455
$4,455

4.5% of your Payment Base
4.5% of your Payment Base
Rider Charge
$841.50
$1,138.50

Rider charge of 0.85% multiplied by your current Payment Base
Rider charge of 1.15% multiplied by your current Payment Base
Guaranteed Minimum Death Benefit
$99,000
$99,000

No change due to anniversary processing
No change due to anniversary processing


APP I-20
 
 
 

Example 10: Assume the same facts as Example 7 (Single Life). Assume that an additional Premium Payment of $20,000 is made in Contract Year 2, the Contract Value after the payment is $121,000.
Values prior to the Premium Payment:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$99,000
$99,000
Threshold
$4,950
$4,950
Guaranteed Minimum Death Benefit
$99,000
$99,000
Values after the Premium Payment:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$119,000
$119,000

Prior Payment Base increased by the Premium Payment
Prior Payment Base increased by the Premium Payment
Threshold
$6,050
$5,950

Withdrawal Percent multiplied by the greater of your current Payment Base or Contract Value
Withdrawal Percent multiplied by your current Payment Base
Guaranteed Minimum Death Benefit
$119,000
$119,000

Prior Death Benefit increased by the Premium Payment
Prior Death Benefit increased by the Premium Payment
Example 11: Assume the same facts as Example 9 (Joint/Spousal). Assume that an additional Premium Payment of $20,000 is made in Contract Year 2, the Contract Value after the payment is $125,000.
Values prior to the Premium Payment:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$99,000
$99,000
Threshold
$4,455
$4,455
Guaranteed Minimum Death Benefit
$99,000
$99,000
Values after the Premium Payment:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$119,000
$119,000

Prior Payment Base increased by the Premium Payment
Prior Payment Base increased by the Premium Payment
Threshold
$5,625
$5,355

Withdrawal Percent multiplied by the greater of your current Payment Base or Contract Value
Withdrawal Percent multiplied by your current Payment Base
Guaranteed Minimum Death Benefit
$119,000
$119,000

Prior Death Benefit increased by the Premium Payment
Prior Death Benefit increased by the Premium Payment


APP I-21
 
 
 

Example 12: Assume the older Covered Life is 74 (Single Life). Assume the owner makes the first partial Surrender under the Contract of $3,000 when, just prior to the partial Surrender, the Payment Base is $50,000; the Contract Value (on Anniversary) is $55,000; the Withdrawal Percent is 6%; the Guaranteed Minimum Death Benefit is $50,000.
Values after the partial Surrender:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$50,000
$50,000

Partial Surrender did not exceed the Lifetime Benefit Payment
Partial Surrender did not exceed the Lifetime Benefit Payment
Withdrawal Percent
6%(1)
6%(1)
Lifetime Benefit Payment
$300
$0

Remaining Lifetime Benefit Payment for the Contract Year
Remaining Lifetime Benefit Payment for the Contract Year

Available Lifetime Benefit Payment was 6% multiplied by the greater of the Payment Base or Contract Value on the Contract Anniversary
Available Lifetime Benefit Payment was 6% multiplied by the Payment Base on the Contract Anniversary

Available Lifetime Benefit Payment was $3,300
Available Lifetime Benefit Payment was $3,000
Guaranteed Minimum Death Benefit
$47,000
$47,000

Prior Death Benefit reduced by the partial Surrender
Prior Death Benefit reduced by the partial Surrender
Example 13: Assume the younger Covered Life is 74 (Joint/Spousal). Assume the owner makes the first partial Surrender under the Contract of $2,750 when, just prior to the partial Surrender, the Payment Base is $50,000; the Contract Value (on Anniversary) is $55,000; the Withdrawal Percent is 5.5%; the Guaranteed Minimum Death Benefit is $50,000.
Values after the partial Surrender:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$50,000
$50,000

Partial Surrender did not exceed the Lifetime Benefit Payment
Partial Surrender did not exceed the Lifetime Benefit Payment
Withdrawal Percent
5.5%(1)
5.5%(1)
Lifetime Benefit Payment
$275
$0

Remaining Lifetime Benefit Payment for the Contract Year
Remaining Lifetime Benefit Payment for the Contract Year

Available Lifetime Benefit Payment was 5.5% multiplied by the greater of the Payment Base or Contract Value on the Contract Anniversary
Available Lifetime Benefit Payment was 5.5% multiplied by the Payment Base on the Contract Anniversary

Available Lifetime Benefit Payment was $3,025
Available Lifetime Benefit Payment was $2,750
Guaranteed Minimum Death Benefit
$47,250
$47,250

Prior Death Benefit reduced by the partial Surrender
Prior Death Benefit reduced by the partial Surrender



APP I-22
 
 
 

Example 14: Assume the same facts as Example 12 (Single Life). Assume that a second partial Surrender is taken in the same Contract Year for $1,000; the Contract Value prior to the partial Surrender is $52,000; the Contract Value after the partial Surrender is $51,000.
Values prior to the partial Surrender:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$50,000
$50,000

Partial Surrender did not exceed the Lifetime Benefit Payment
Partial Surrender did not exceed the Lifetime Benefit Payment
Withdrawal Percent
6%
6%
Lifetime Benefit Payment
$300
$0

Remaining Lifetime Benefit Payment for the Contract Year
Remaining Lifetime Benefit Payment for the Contract Year

Available Lifetime Benefit Payment was 6% multiplied by the greater of the Payment Base or Contract Value on the Contract Anniversary
Available Lifetime Benefit Payment was 6% multiplied by the Payment Base on the Contract Anniversary

Available Lifetime Benefit Payment was $3,300
Available Lifetime Benefit Payment was $3,000
Guaranteed Minimum Death Benefit
$47,000
$47,000

Prior Death Benefit reduced by the partial Surrender
Prior Death Benefit reduced by the partial Surrender
Values after the partial Surrender:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$49,323
$49,038

Proportional reduction:
1-($700/($52,000-$300)
Proportional reduction:
1-($1000/$52,000)
Lifetime Benefit Payment
$0
$0

Remaining Lifetime Benefit Payment for the Contract Year
Remaining Lifetime Benefit Payment for the Contract Year
Guaranteed Minimum Death Benefit
$46,068
$46,096

Prior Death Benefit reduced by partial surrender NOT exceeding the Lifetime Benefit Payment. Then, proportional reduction multiplied by the result of the above
Prior Death Benefit reduced by partial surrender NOT exceeding the Lifetime Benefit Payment. Then, proportional reduction multiplied by the result of the above
Example 15: Assume the same facts as Example 13 (Joint/Spousal). Assume that a second partial Surrender is taken in the same Contract Year for $2,000; the Contract Value prior to the partial Surrender is $49,000; the Contract Value after the partial Surrender is $47,000.
Values prior to the partial Surrender:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$50,000
$50,000
Withdrawal Percent
5.5%
5.5%
Lifetime Benefit Payment
$275
$0

Remaining Lifetime Benefit Payment for the Contract Year
Remaining Lifetime Benefit Payment for the Contract Year

Available Lifetime Benefit Payment was 5.5% multiplied by the greater of the Payment Base or Contract Value on the Contract Anniversary
Available Lifetime Benefit Payment was 5.5% multiplied by the Payment Base on the Contract Anniversary


APP I-23
 
 
 


Available Lifetime Benefit Payment was $3,025
Available Lifetime Benefit Payment was $2,750
Guaranteed Minimum Death Benefit
$47,250
$47,250
Values after the partial Surrender:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$48,230
$47,959

Proportional reduction:
1-($1,725/($49,000-$275)
Proportional reduction:
1-($2,000/$49,000)
Lifetime Benefit Payment
$0
$0

Remaining Lifetime Benefit Payment for the Contract Year
Remaining Lifetime Benefit Payment for the Contract Year
Guaranteed Minimum Death Benefit
$45,312
$45,321

Prior Death Benefit reduced by partial surrender NOT exceeding the Lifetime Benefit Payment. Then, proportional reduction multiplied by the result of the above
Prior Death Benefit reduced by partial surrender NOT exceeding the Lifetime Benefit Payment. Then, proportional reduction multiplied by the result of the above
Example 16: Assume the same facts as Example 1 (Single Life). Now assume you have reached your first Contract Anniversary. Your Contract Value on the Contract Anniversary is $115,000.
Values prior to the Contract Anniversary:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$100,000
$100,000

Equal to your initial Premium Payment
Equal to your initial Premium Payment
Threshold
$5,000
$5,000

5% of your Payment Base
5% of your Payment Base
Lifetime Benefit Payment
N/A
N/A
Guaranteed Minimum Death Benefit
$100,000
$100,000

Equal to your initial Premium Payment
Equal to your initial Premium Payment
Values after the anniversary processing:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$110,000
$115,000

The ratio is the Contract Value ($115,000) divided by your current Payment Base ($100,000), less 1
Greater of the Contract Value prior to the rider charge being taken, or

Resulting in 15%, capped at 10%. Subject to minimum of 0% and maximum of 10%
Your current Payment Base
Threshold
$5,500
$5,750

5% of your Payment Base
5% of your Payment Base
Guaranteed Minimum Death Benefit
$100,000
$100,000

No change due to anniversary processing
No change due to anniversary processing



APP I-24
 
 
 

Example 17: Assume the same facts as Example 2 (Joint/Spousal). Now assume you have reached your first Contract Anniversary. Your Contract Value on the anniversary is $115,000.
Values prior to the Contract Anniversary:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$100,000
$100,000

Equal to your initial Premium Payment
Equal to your initial Premium Payment
Threshold
$4,500
$4,500

4.5% of your Payment Base
4.5% of your Payment Base
Lifetime Benefit Payment
N/A
N/A
Guaranteed Minimum Death Benefit
$100,000
$100,000

Equal to your initial Premium Payment
Equal to your initial Premium Payment
Values after the Contract Anniversary:
Payment Base
$110,000
$115,000

The ratio is the Contract Value ($115,000) divided by your current Payment Base ($100,000), less 1
Greater of the Contract Value prior to the rider charge being taken, or

Resulting in 15%, capped at 10%. Subject to minimum of 0% and maximum of 10%
Your current Payment Base
Threshold
$4,950
$5,175

4.5% of your Payment Base
4.5% of your Payment Base
Guaranteed Minimum Death Benefit
$100,000
$100,000

No change due to anniversary processing
No change due to anniversary processing
Example 18: Spousal Contract Continuation(Single Life)
On date of Spousal Contract continuation, we increase the Contract Value to equal the Death Benefit (if greater). For illustration purposes, we will assume the Contract Value on the date of continuation is set equal to the Death Benefit of $150,000 and the Payment Base is $125,000.
Values upon Spousal Continuation:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$150,000
$150,000

Equal to the Contract Value on date of continuation
Equal to Contract Value on date of continuation
Withdrawal Percentage
6%
6%

Withdrawal Percent is set using the oldest Covered Life’s age on the effective date of continuation
Withdrawal Percent is set using the oldest Covered Life’s age on the effective date of continuation
Lifetime Benefit Payment
$9,000
$9,000

Withdrawal Percent multiplied by the Payment Base on date of continuation
Withdrawal Percent multiplied by the Payment Base on date of continuation
Guaranteed Minimum Death Benefit
$150,000
$150,000

Equal to Contract Value on date of continuation
Equal to Contract Value on date of continuation


APP I-25
 
 
 

Example 19: Spousal Contract Continuation (Joint/Spousal)
On date of Spousal Contract continuation, we increase the Contract Value to equal the Death Benefit (if greater). For illustration purposes, we will assume the Contract Value on the date of continuation is set equal to the Death Benefit of $150,000 and the Payment Base is $125,000.
Values upon Spousal Contract Continuation:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$150,000
$150,000

Greater of Contract Value or Payment Base on date of continuation
Greater of Contract Value or Payment Base on date of continuation
Withdrawal Percentage
5.5%
5.5%

Withdrawal Percent is set using the oldest Covered Life’s age on the effective date of continuation
Withdrawal Percent is set using the oldest Covered Life’s age on the effective date of continuation
Lifetime Benefit Payment
$8,250
$8,250

Withdrawal Percent multiplied by the greater of the Contract Value or Payment Base on date of continuation
Withdrawal Percent multiplied by Payment Base on date of continuation
Guaranteed Minimum Death Benefit
$150,000
$150,000

Equal to Contract Value on date of continuation
Equal to Contract Value on date of continuation
Example 20: Withdrawal Percent Increase; Assume the same contract issue facts as Example 4 (Single Life). Your Withdrawal Percent is 6%, which was based on your age (70) at the time of first withdrawal. Your Lifetime Benefit Payment prior to the contract anniversary is $6,300. You are now age 75 and your anniversary is being processed. Your Contract Value on anniversary is $117,000.
Values prior to the Anniversary:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$105,000
$105,000
Withdrawal Percent
6%
6%
Lifetime Benefit Payment
$6,300
$6,300
Guaranteed Minimum Death Benefit
$94,000
$94,000
Values after the anniversary processing:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$115,500
$117,000

The ratio is the Contract Value ($117,000) divided by your current Payment Base ($105,000), less 1
Greater of the Contract Value prior to the rider charge being taken, or

Resulting in 11%, capped at 10%. Subject to minimum of 0% and maximum of 10%
Your current Payment Base
Withdrawal Percent
6.5%
6.5%

Due to the automatic increase and client reaching a new age band, the Withdrawal Percent has increased
Due to the automatic increase and client reaching a new age band, the Withdrawal Percent has increased
Lifetime Benefit Payment
$7,507.50
$7,605
Rider Charge
$977.50
$1,345.50

Rider charge of 0.85% multiplied by your current Payment Base
Rider charge of 1.15% multiplied by your current Payment Base


APP I-26
 
 
 

Guaranteed Minimum Death Benefit
$94,000
$94,000

No change due to anniversary processing
No change due to anniversary processing
Example 21
Assume the following Contract values:
Contract Value = $3,000
Lifetime Benefit Payment = $2,000
Client takes a partial Surrender of $2,000 (within rider limit)
New Contract Value = $1,000
•
Minimum Amount Rule is reached as remaining Contract Value is reduced below one Lifetime Benefit Payment and the Partial Surrender was within the rider limit
•
Contract Value is transferred to approved investment program
•
We will no longer accept subsequent Premium Payments
•
We will begin to automatically pay the annual Lifetime Benefit Payment via the Automatic Income Program. The Lifetime Benefit Payment will be paid out of our General Account
•
The payout of the Lifetime Benefit Payment will no longer reduce the Contract Value, however, the Death Benefit will continue to be reduced
•
We will waive the Annual Maintenance Fee and rider fee
•
Benefit Increases will no longer be applied
NOTE: If the Contract Value is reduced below one Lifetime Benefit Payment on any Contract Anniversary due to performance the above scenario would occur.
Example 22
Assume the following Contract values:
Contract Value = $3,000
Lifetime Benefit Payment = $2,000
Client takes a partial Surrender of $2,800 (exceeds rider limit)
New Contract Value = $200
•
Minimum Account Rule is reached as remaining Contract Value is reduced below the Minimum Account Rule under the contract, $500 (varies by state) and the Partial Surrender exceeded the rider limit
•
Contract is fully liquidated
Example 23: Automatic Payment Base Increase to Relevant Covered Life Attained age 90. Assume that you select a Single Life option. Your Withdrawal Percentage is 7.5%, which is based on your age (85) at the time of your first withdrawal. Your Lifetime Benefit Payment prior to contract anniversary is $7,500. You are now age 90 and your anniversary is being processed. Your Contract Value on your anniversary is $120,000.
Values prior to anniversary:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$100,000
$100,000
Withdrawal Percentage
7.5%
7.5%
Lifetime Benefit Payment
$7,500
$7,500
Guaranteed Minimum Death Benefit
$92,500
$92,500


APP I-27
 
 
 

Values after the anniversary processing:
Feature
Lifetime Income
Builder Selects
Lifetime Income
Builder Portfolios
Payment Base
$110,000
$120,000

The ratio is the Contract Value
($120,000) divided by current Payment
Base ($100,00), less 1 results in 20%,
capped at 10%
Greater of the Contract Value prior to the
rider charge being taken, or Your
Payment Base
Withdrawal Percentage
8%
8%

Due to the automatic increase and client
reaching a new age band, the Withdrawal
Percentage has increased
Due to the automatic increase and client
reaching a new age band, the Withdrawal
Percentage has increased
Lifetime Benefit Payment
$8,800
$9,600
Rider Charge
$935
$1,380.50

Rider charge of 0.85% multiplied by your
current Payment Base
Rider charge of 1.15% multiplied by your
current Payment Base
Guaranteed Minimum Death Benefit
$92,500
$92,500

No change due to anniversary processing
No change due to anniversary processing
Example 24: Deferral Illustration. Assume that on your birthday in September 2008 you are 60. You purchase the Contract in November 2008 and select Lifetime Income Builder Portfolios with the Single Life option. Assume no growth in Contract Value.
Feature
No partial Surrenders in
first 5 years of the rider
Partial Surrender in
second year of the rider
Withdrawal Percentage at issue
5%
5%
Payment Base at issue
$100,000
$100,000
Lifetime Benefit Payment at issue
$5,000
$5,000
Withdrawal Percentage on birthday in
September 2013 when Relevant Covered
Life is age 65
Increased to 5.5%
Remains at 5%
Payment Base on birthday
$100,000
$100,000

No change due to birthday
No change due to birthday
Lifetime Benefit Payment on birthday
Increased to $5,500
Remains at $5,000
Anniversary in November 2013 -
Contract Value is less than current
Payment Base, so there is no change
to the Payment Base
$100,000
$100,000
Withdrawal Percentage
5.5%
5%
Lifetime Benefit Payment
$5,500
$5,000
MAV Plus
Example 1
Assume that:
•
You elected the MAV Plus Death Benefit when you purchased your Contract with the Premium Security Death Benefit,
•
You made a single Premium Payment of $100,000,
•
In your fourth Contract Year, you made a withdrawal of $8,000,
•
Your Contract Value in your fourth Contract Year immediately before your withdrawal was $109,273,
•
On the day we receive proof of Death, your Contract Value was $117,403,
•
Your Maximum Anniversary Value was $106,000,
•
The Contract Value on the date we calculate the Death Benefit plus 40% of the Contract gain was greater than the Premium Security Death Benefit, your adjusted total Premium Payments, and your Maximum Anniversary Value.


APP I-28
 
 
 

Adjustment for Partial Surrenders for Earnings Protection Benefit
To calculate the Earnings Protection Benefit, we make an adjustment for partial Surrenders if the amount of a Surrender is greater than the Contract gain in the Contract immediately prior to the Surrender. To determine if the partial Surrender is greater than the Contract gain:
•
We determine Contract gain by subtracting the Contract Value on the date you added the MAV Plus Death Benefit from the Contract Value immediately before the partial surrender, then deduct any premium payments and add any adjustments for partial Surrenders made during that time [$109,273 – $100,000 – $0 + $0 = $9,273].
Since the Contract gain at the time of partial Surrender [$9,273] exceeds the partial Surrender [$8,000], there is no adjustment for the partial Surrender in this case.
Calculation of Contract gain
We would calculate the Contract gain as follows:
•
Contract Value on the day we receive proof of Death [$117,403],
•
Subtract the Contract Value on the date the MAV Plus Death Benefit was added to your Contract [$100,000],
•
Add any adjustments for partial Surrenders [$0], So the Contract gain equals $17,403.
Calculation of Earnings Protection Benefit Cap
To determine if the cap applies:
•
We calculate the Contract Value on the date the MAV Plus Death Benefit was added to your Contract ($100,000),
•
plus Premium Payments made since that date excluding Premium Payments made in the 12 months prior to death ($0),
•
minus any adjustments for partial Surrenders ($0),
Which equals $100,000. The cap is 200% of $100,000, which is $200,000.
MAV Plus Death Benefit Amount is $106,000. (See Example 1 under Premium Security Death Benefit for details of calculation.)
Adjusted Total Premium Payment Amount is $92,000. (See Example 1 under MAV Plus/EPB Death Benefit for details of calculation.)
MAV Plus Death Benefit
In this situation the cap does not apply, so we take the Contract Value on the date we receive proof of death and adds 40% of gain [$117,403 + 40% (17,403)] which totals $124,364. This is the greatest of the four values compared, and so is the Death Benefit.
Example 2
Assume that:
•
You elected the MAV Plus Death Benefit when you purchased your Contract with the Premium Security Death Benefit,
•
You made a single Premium Payment of $100,000,
•
In your fourth Contract Year, you made a partial Surrender of $60,000,
•
Your Contract Value in the fourth year immediately before your Surrender was $150,000,
•
Your Maximum Anniversary Value is $83,571 (based on an adjustment to an anniversary value that was $140,000 before the partial Surrender (see below)),
•
On the day we receive proof of Death, your Contract Value was $120,000,
•
The Contract Value on the date we calculate the Death Benefit plus 40% of the Contract gain was the greatest of the Death Benefit calculations.
Adjustment for Partial Surrenders
To calculate the Earnings Protection Benefit, we make an adjustment for partial Surrenders if the amount of a Surrender is greater than the Contract gain in the Contract immediately prior to the Surrender. To determine if the partial Surrender is greater than the Contract gain:
•
We determine Contract gain by subtracting the Contract Value on the date you added the MAV Plus Death Benefit from the Contract Value immediately before the partial surrender, then deduct any premium payments and add any adjustments for partial Surrenders made during that time [$150,000 – $100,000 – $0 + $0 = $50,000].
Since the partial Surrender [$60,000] exceeds the Contract gain at the time of partial Surrender [$50,000], the adjustment for the partial Surrender is the difference, or $10,000.
Calculation of Contract gain
We would calculate the Contract gain as follows:
•
Contract Value on the day we receive proof of Death [$120,000],
•
Subtract the Contract Value on the date the MAV Plus Death Benefit was added to your Contract [$100,000],
•
Add any adjustments for partial Surrenders [$10,000], So the Contract gain equals $30,000.


APP I-29
 
 
 

Calculation of Earnings Protection Benefit Cap
To determine if the cap applies:
•
We calculate the Contract Value on the date the MAV Plus Death Benefit was added to your Contract ($100,000),
•
plus Premium Payments made since that date excluding Premium Payments made in the 12 months prior to death ($0),
•
minus any adjustments for partial Surrenders ($10,000),
Which equals $90,000. The cap is 200% of $90,000, which is $180,000.
Adjustment for Partial Surrenders for Maximum Anniversary Value
The adjustment to your Maximum Anniversary Value for partial Surrenders is on a dollar for dollar basis up to 10% of total Premium Payments. 10% of Premium Payments is $10,000. Maximum Anniversary Value adjusted for dollar for dollar Surrenders is $140,000 – $10,000 = $130,000. Remaining Surrenders equal $50,000. This amount will reduce the Maximum Anniversary Value proportionally. Contract Value immediately before Surrender is $150,000 minus $10,000 = $140,000. The proportional factor is 1 – (50,000/140,000) = .64286. This factor is multiplied by $130,000. The result is an adjusted Maximum Anniversary Value of $83,571.
Death Benefit with Earnings Protection Benefit
In this situation the cap does not apply, so we take 40% of Contract gain on the day we receive proof of death $30,000 or $12,000 and add that to the Contract Value on the date we receive proof of death. Therefore, the Earnings Protection Benefit is [40% ($30,000) + $120,000], which equals $132,000.
Annuity Commencement Date Deferral Option
T his example does not represent your actual Contract. It uses hypothetical amounts, not your actual Contract amounts.
This example is intended to help you compare the total and taxable amounts of annuity payments if you annuitize your contract on its Annuity Commencement Date to the total and taxable amounts of annuity payments if you elect the Deferral Option and either die at age 100 under circumstances which trigger payment of a Death Benefit or annuitize your contract on the Annuitant’s 100 th birthday.
Because the amounts used below are assumptions and do not represent your actual Contract amounts, this example should not be considered to be a representation of the actual total or taxable amounts nor a representation of the tax consequences of receipt of those total or taxable amounts. The consequences of receipt of those total and taxable amounts depend on many factors outside the scope of this example.
This example assumes that on the Annuity Commencement Date:
The annuitant is age 90.
The Contract Value is $250,000.
The investment (tax basis) in the Contract is $175,000.
The Contract is non-Qualified.
The amounts shown in this example will vary depending on the annuitization option chosen and whether variable payouts, fixed payouts or a combination of variable and fixed payouts are elected. In addition, the exclusion ratio depends on factors including the investment into the Contract, the Contract Value and the length of time that annuity payments will continue. For Payout Options which include a Life Annuity, the exclusion ratio may also depend on the annuitant’s life expectancy at the time annuity payments begin.
As you consider this example, please note that to make a direct comparison between the total and taxable amounts received through annuitization at the Annuity Commencement Date (age 90) and received at the Deferred Annuity Commencement Date, you must calculate the results of investment of the amount received at age 90 for the ten-year period until age 100. Factors to consider in this calculation include:
•The assumed net rate of return for this period;
•The amount payable in taxes related to this amount; and
•Potential changes in laws including tax laws that may affect investment and taxes.
Total and taxable amounts if the Contract is annuitized on the Annuity Commencement Date:
To calculate the total and taxable amounts, this example assumes:
The election of the ten year Payments for a Period Certain, Fixed Dollar Amount Annuity Payout Option.
The annual payment is assumed to equal to $25,660. This amount is calculated based on the assumed contract value of $250,000 and a crediting rate of 0.56%. The crediting rate is set by us periodically using current interest rates and other factors.
After 10 years, total payments of $256,600 ($25,660 per year times 10 years) will be received.
Based on these assumptions:
The exclusion ratio is 0.682 ($175,000 divided by $256,600). The exclusion ratio represents the portion of your payments that are excludable from federal income tax.


APP I-30
 
 
 

The annual excludable amount is $17,500 ($25,660 times 0.682). This represents the portion of your annual payment that is excludable from federal income tax. The annual taxable amount is the remainder, $8,160 ($25,660 minus $17,500).
After 10 years, the total taxable amount is $81,600 ($8,160 per year times 10 years).
Total and taxable amounts if the Annuity Commencement Date Deferral Option is elected and the Annuity Commencement Date is deferred to age 100 and the Contract has positive net returns through age 100:
This example assumes:
The Contract has a 4% annual growth, net of fees, compounded annually, for the next ten years.
Based on this assumption, the Contract Value at age 100 is $370,061 ($250,000 times (1+ .04) compounded each year for ten years).
If a Death Benefit is payable at age 100:
The beneficiary receives the $370,061 Contract Value as a Death Benefit in one lump sum.
$195,061 (the total amount minus the investment in the Contract, or $370,061 minus $175,000) of the amount is taxable to the beneficiary.
If annuitization is elected at age 100 using the ten year Payments for a Period Certain, Fixed Dollar Amount Annuity Payout Option:
This example assumes:
The annual payment is assumed to equal to $37,960. This amount is calculated based on the assumed contract value of $370,061 and a crediting rate of 0.56%. The crediting rate is set by us periodically using current interest rates and other factors.
After 10 years, total payments of $379,600 ($37,960 per year times 10 years) will be received.
Based on this assumption:
The exclusion ratio will be 0.461 ($175,000 divided by $379,600). The exclusion ratio represents the portion of your payments that are excludable from federal income tax.
The annual excludable amount is $17,500 ($37,960 times 0.461). This represents the portion of your annual payment that is excludable from federal income tax.
The annual taxable amount is the remainder, $20,460 ($37,960 minus $17,500).
After 10 years, the total taxable amount is $204,600 ($20,460 per year times 10 years).
Total and taxable amounts if the Annuity Commencement Date Deferral Option is elected, the Annuity Commencement Date is deferred to age 100 and the Contract has negative net returns through age 100:
This example assumes:
The Contract has a -2% annual growth, net of fees, compounded annually, for the next ten years.
Based on this assumption, the Contract Value at age 100 is $204,268 ($250,000 times (1 -.02) compounded each year for ten years).
If a Death Benefit is payable at age 100:
The beneficiary receives the $204,268 Contract Value as a Death Benefit in one lump sum.
$29,268 (the total amount minus the investment in the Contract, or $204,268 minus $175,000) of the amount is taxable to the beneficiary.
If annuitization is elected at age 100 using the ten year Payments for a Period Certain, Fixed Dollar Amount Annuity Payout Option:
This example assumes:
The annual payment is assumed to equal to $20,983. This amount is calculated based on the assumed contract value of $204,268 and a crediting rate of 0.56%. The crediting rate is set by us periodically using current interest rates and other factors.
After 10 years, total payments of $209,830 ($20,983 per year times 10 years) will be received.
Based on this assumption:
The exclusion ratio will be 0.834 ($175,000 divided by $209,830). The exclusion ratio represents the portion of your payments that are excludable from federal income tax.
The annual excludable amount is $17,500 ($20,983 times 0.834). This represents the portion of your annual payment that is excludable from federal income tax.
The annual taxable amount is the remainder or $3,483 ($20,983 minus $17,500).
After 10 years, total taxable amount is $34,830 ($3,483 per year times 10 years).


APP II-1
 
 
 

Appendix II — Accumulation Unit Values
The following information should be read in conjunction with the financial statements for the Separate Account included in the Statement of Additional Information.
There are several classes of Accumulation Unit Values under the Contract depending on the number of optional benefits you select. There are two tables below reflecting the Accumulation Unit Values for Talcott Resolution Life Insurance Company and Talcott ResolutionLife and Annuity Insurance Company. The tables show only the highest and lowest possible Accumulation Unit Value, assuming you select no optional benefits or assuming you select all optional benefits. Tables showing all classes of Accumulation Unit Values corresponding to all combinations of optional benefits appear in the Statement of Additional Information, which you may obtain free of charge by contacting us at 1-800-862-6668.
Talcott Resolution Life Insurance Company
Series II/IIR
 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Asset Allocation Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.278

$
22.402

$
22.303

$
21.364

$
17.437

$
15.150

$
15.099

$
13.549

$
11.032

$
15.800

Accumulation Unit Value at end of period
$
27.952

$
24.278

$
22.402

$
22.303

$
21.364

$
17.437

$
15.150

$
15.099

$
13.549

$
11.032

Number of Accumulation Units outstanding at end of period (in thousands)
9

9

9

24

25

51

51

49

49

52

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.842

$
17.570

$
17.677

$
17.111

$
14.113

$
12.392

$
12.481

$
11.317

$
9.312

$
—

Accumulation Unit Value at end of period
$
21.467

$
18.842

$
17.570

$
17.677

$
17.111

$
14.113

$
12.392

$
12.481

$
11.317

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
436

490

553

653

827

1,078

1,301

1,703

1,992

—

American Funds Blue Chip Income and Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.109

$
1.793

$
1.865

$
1.632

$
1.239

$
1.098

$
1.119

$
1.006

$
0.793

$
1.261

Accumulation Unit Value at end of period
$
2.445

$
2.109

$
1.793

$
1.865

$
1.632

$
1.239

$
1.098

$
1.119

$
1.006

$
0.793

Number of Accumulation Units outstanding at end of period (in thousands)
16

16

14

22

22

42

67

76

82

81

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.792

$
1.540

$
1.619

$
1.432

$
1.098

$
0.984

$
1.013

$
0.920

$
0.733

$
—

Accumulation Unit Value at end of period
$
2.056

$
1.792

$
1.540

$
1.619

$
1.432

$
1.098

$
0.984

$
1.013

$
0.920

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
2,199

2,634

2,890

3,507

4,071

6,007

7,915

10,548

13,640

—

American Funds Bond Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.763

$
17.420

$
17.538

$
16.818

$
17.353

$
16.625

$
15.818

$
15.003

$
13.450

$
14.979

Accumulation Unit Value at end of period
$
18.240

$
17.763

$
17.420

$
17.538

$
16.818

$
17.353

$
16.625

$
15.818

$
15.003

$
13.450

Number of Accumulation Units outstanding at end of period (in thousands)
7

7

8

8

8

9

13

25

26

26

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.709

$
14.577

$
14.830

$
14.372

$
14.985

$
14.508

$
13.950

$
13.370

$
12.113

$
—

Accumulation Unit Value at end of period
$
14.946

$
14.709

$
14.577

$
14.830

$
14.372

$
14.985

$
14.508

$
13.950

$
13.370

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
452

487

578

667

782

807

1,025

1,451

1,817

—



APP II-2
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Global Bond Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.098

$
12.873

$
13.547

$
13.489

$
13.978

$
13.288

$
12.833

$
12.311

$
11.330

$
11.054

Accumulation Unit Value at end of period
$
13.863

$
13.098

$
12.873

$
13.547

$
13.489

$
13.978

$
13.288

$
12.833

$
12.311

$
11.330

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

2

2

2

2

1

1

1

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.762

$
11.683

$
12.424

$
12.501

$
13.092

$
12.577

$
12.274

$
11.899

$
11.067

$
—

Accumulation Unit Value at end of period
$
12.320

$
11.762

$
11.683

$
12.424

$
12.501

$
13.092

$
12.577

$
12.274

$
11.899

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
63

64

85

102

116

172

261

343

353

—

American Funds Global Growth and Income Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.812

$
14.871

$
15.217

$
14.542

$
11.981

$
10.289

$
10.917

$
9.859

$
7.124

$
12.224

Accumulation Unit Value at end of period
$
19.745

$
15.812

$
14.871

$
15.217

$
14.542

$
11.981

$
10.289

$
10.917

$
9.859

$
7.124

Number of Accumulation Units outstanding at end of period (in thousands)
3

3

3

3

3

3

3

3

3

3

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.126

$
13.425

$
13.882

$
13.407

$
11.162

$
9.687

$
10.387

$
9.479

$
6.922

$
—

Accumulation Unit Value at end of period
$
17.455

$
14.126

$
13.425

$
13.882

$
13.407

$
11.162

$
9.687

$
10.387

$
9.479

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
134

142

160

198

270

403

523

638

712

—

American Funds Global Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.170

$
26.257

$
24.788

$
24.459

$
19.115

$
15.745

$
17.445

$
15.761

$
11.181

$
18.321

Accumulation Unit Value at end of period
$
34.080

$
26.170

$
26.257

$
24.788

$
24.459

$
19.115

$
15.745

$
17.445

$
15.761

$
11.181

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

3

3

3

6

7

8

8

8

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.289

$
22.599

$
21.560

$
21.498

$
16.979

$
14.133

$
15.825

$
14.447

$
10.357

$
—

Accumulation Unit Value at end of period
$
28.724

$
22.289

$
22.599

$
21.560

$
21.498

$
16.979

$
14.133

$
15.825

$
14.447

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
81

95

107

132

169

248

318

402

504

—

American Funds Global Small Capitalization Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.562

$
26.264

$
26.445

$
26.142

$
20.574

$
17.575

$
21.944

$
18.097

$
11.327

$
24.603

Accumulation Unit Value at end of period
$
33.124

$
26.562

$
26.264

$
26.445

$
26.142

$
20.574

$
17.575

$
21.944

$
18.097

$
11.327

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

2

2

2

4

5

5

5

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.821

$
23.802

$
24.219

$
24.195

$
19.242

$
16.611

$
20.959

$
17.467

$
11.048

$
—

Accumulation Unit Value at end of period
$
29.395

$
23.821

$
23.802

$
24.219

$
24.195

$
19.242

$
16.611

$
20.959

$
17.467

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
82

83

102

119

142

176

228

318

372

—



APP II-3
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.055

$
24.947

$
23.568

$
21.928

$
17.015

$
14.571

$
15.367

$
13.072

$
9.466

$
17.056

Accumulation Unit Value at end of period
$
34.382

$
27.055

$
24.947

$
23.568

$
21.928

$
17.015

$
14.571

$
15.367

$
13.072

$
9.466

Number of Accumulation Units outstanding at end of period (in thousands)
17

18

20

20

20

25

28

34

42

36

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.031

$
20.529

$
19.599

$
18.427

$
14.450

$
12.504

$
13.327

$
11.456

$
8.383

$
—

Accumulation Unit Value at end of period
$
27.705

$
22.031

$
20.529

$
19.599

$
18.427

$
14.450

$
12.504

$
13.327

$
11.456

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
821

933

1,093

1,263

1,533

2,068

2,822

3,820

5,053

—

American Funds Growth-Income Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.908

$
24.359

$
24.238

$
22.118

$
16.726

$
14.373

$
14.780

$
13.391

$
10.301

$
16.732

Accumulation Unit Value at end of period
$
32.619

$
26.908

$
24.359

$
24.238

$
22.118

$
16.726

$
14.373

$
14.780

$
13.391

$
10.301

Number of Accumulation Units outstanding at end of period (in thousands)
15

16

18

19

19

28

36

48

49

54

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.248

$
18.523

$
18.627

$
17.176

$
13.126

$
11.398

$
11.845

$
10.845

$
8.431

$
—

Accumulation Unit Value at end of period
$
24.290

$
20.248

$
18.523

$
18.627

$
17.176

$
13.126

$
11.398

$
11.845

$
10.845

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
826

938

1,062

1,265

1,580

2,125

2,811

3,730

4,797

—

American Funds International Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.375

$
17.917

$
18.946

$
19.648

$
16.307

$
13.963

$
16.384

$
15.425

$
10.884

$
18.985

Accumulation Unit Value at end of period
$
24.052

$
18.375

$
17.917

$
18.946

$
19.648

$
16.307

$
13.963

$
16.384

$
15.425

$
10.884

Number of Accumulation Units outstanding at end of period (in thousands)
—

1

1

1

1

2

2

2

2

4

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.341

$
16.102

$
17.206

$
18.033

$
15.124

$
13.086

$
15.518

$
14.764

$
10.527

$
—

Accumulation Unit Value at end of period
$
21.166

$
16.341

$
16.102

$
17.206

$
18.033

$
15.124

$
13.086

$
15.518

$
14.764

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
203

231

258

304

351

496

640

810

993

—

American Funds New World Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.971

$
29.705

$
30.962

$
33.928

$
30.753

$
26.350

$
30.914

$
26.476

$
17.861

$
31.291

Accumulation Unit Value at end of period
$
39.711

$
30.971

$
29.705

$
30.962

$
33.928

$
30.753

$
26.350

$
30.914

$
26.476

$
17.861

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.716

$
23.956

$
25.233

$
27.942

$
25.595

$
22.162

$
26.275

$
22.740

$
15.502

$
—

Accumulation Unit Value at end of period
$
31.360

$
24.716

$
23.956

$
25.233

$
27.942

$
25.595

$
22.162

$
26.275

$
22.740

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
60

61

77

99

111

162

215

303

333

—



APP II-4
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Fidelity VIP Dynamic Capital Appreciation Portfolio
 
 
 
 
 
 
 
 
 
 
With The Hartford's Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
21.567

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.837

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
4

—

—

—

—

—

—

—

—

—

Franklin Flex Cap Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.509

$
18.202

$
17.607

$
16.752

$
12.301

$
11.366

$
12.053

$
10.472

$
7.951

$
12.409

Accumulation Unit Value at end of period
$
22.016

$
17.509

$
18.202

$
17.607

$
16.752

$
12.301

$
11.366

$
12.053

$
10.472

$
7.951

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.463

$
16.244

$
15.879

$
15.268

$
11.330

$
10.578

$
11.337

$
9.954

$
7.637

$
—

Accumulation Unit Value at end of period
$
19.240

$
15.463

$
16.244

$
15.879

$
15.268

$
11.330

$
10.578

$
11.337

$
9.954

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
15

18

23

25

31

35

48

111

123

—

Franklin Income VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.759

$
21.036

$
22.849

$
22.049

$
19.536

$
17.507

$
17.263

$
15.468

$
11.516

$
16.527

Accumulation Unit Value at end of period
$
25.811

$
23.759

$
21.036

$
22.849

$
22.049

$
19.536

$
17.507

$
17.263

$
15.468

$
11.516

Number of Accumulation Units outstanding at end of period (in thousands)
9

9

13

13

14

16

16

20

20

20

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.368

$
18.224

$
20.003

$
19.507

$
17.466

$
15.817

$
15.761

$
14.271

$
10.737

$
—

Accumulation Unit Value at end of period
$
21.896

$
20.368

$
18.224

$
20.003

$
19.507

$
17.466

$
15.817

$
15.761

$
14.271

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
533

614

732

867

1,049

1,433

1,907

2,351

2,825

—

Franklin Large Cap Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.686

$
19.209

$
18.360

$
16.481

$
12.935

$
11.620

$
11.911

$
10.776

$
8.385

$
12.930

Accumulation Unit Value at end of period
$
23.712

$
18.686

$
19.209

$
18.360

$
16.481

$
12.935

$
11.620

$
11.911

$
10.776

$
8.385

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.018

$
16.640

$
16.072

$
14.580

$
11.563

$
10.498

$
10.874

$
9.941

$
7.818

$
—

Accumulation Unit Value at end of period
$
20.114

$
16.018

$
16.640

$
16.072

$
14.580

$
11.563

$
10.498

$
10.874

$
9.941

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
53

52

71

87

102

147

212

301

332

—



APP II-5
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Mutual Global Discovery VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
32.926

$
29.632

$
31.048

$
29.652

$
23.457

$
20.890

$
21.733

$
19.597

$
16.043

$
22.638

Accumulation Unit Value at end of period
$
35.418

$
32.926

$
29.632

$
31.048

$
29.652

$
23.457

$
20.890

$
21.733

$
19.597

$
16.043

Number of Accumulation Units outstanding at end of period (in thousands)
2

2

2

2

3

3

3

6

6

6

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.523

$
25.941

$
27.468

$
26.510

$
21.192

$
19.073

$
20.052

$
18.272

$
15.116

$
—

Accumulation Unit Value at end of period
$
30.363

$
28.523

$
25.941

$
27.468

$
26.510

$
21.192

$
19.073

$
20.052

$
18.272

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
61

70

88

107

124

161

233

296

374

—

Franklin Mutual Shares VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.384

$
24.690

$
26.220

$
24.711

$
19.450

$
17.187

$
17.534

$
15.919

$
12.750

$
20.467

Accumulation Unit Value at end of period
$
30.463

$
28.384

$
24.690

$
26.220

$
24.711

$
19.450

$
17.187

$
17.534

$
15.919

$
12.750

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

3

3

3

3

3

9

9

8

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.507

$
18.905

$
20.289

$
19.323

$
15.369

$
13.725

$
14.150

$
12.982

$
10.507

$
—

Accumulation Unit Value at end of period
$
22.841

$
21.507

$
18.905

$
20.289

$
19.323

$
15.369

$
13.725

$
14.150

$
12.982

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
286

326

393

495

608

753

1,061

1,371

1,724

—

Franklin Rising Dividends VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.099

$
23.576

$
24.702

$
22.937

$
17.855

$
16.100

$
15.333

$
12.831

$
11.039

$
15.287

Accumulation Unit Value at end of period
$
32.362

$
27.099

$
23.576

$
24.702

$
22.937

$
17.855

$
16.100

$
15.333

$
12.831

$
11.039

Number of Accumulation Units outstanding at end of period (in thousands)
3

3

4

5

5

6

5

9

9

9

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.476

$
20.639

$
21.853

$
20.506

$
16.131

$
14.698

$
14.147

$
11.963

$
10.401

$
—

Accumulation Unit Value at end of period
$
27.742

$
23.476

$
20.639

$
21.853

$
20.506

$
16.131

$
14.698

$
14.147

$
11.963

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
266

311

367

432

514

622

764

863

992

—

Franklin Small Cap Value VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.757

$
13.770

$
15.010

$
15.067

$
11.165

$
9.521

$
9.987

$
7.863

$
6.146

$
9.264

Accumulation Unit Value at end of period
$
19.463

$
17.757

$
13.770

$
15.010

$
15.067

$
11.165

$
9.521

$
9.987

$
7.863

$
6.146

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.108

$
12.623

$
13.905

$
14.105

$
10.563

$
9.102

$
9.649

$
7.677

$
6.064

$
—

Accumulation Unit Value at end of period
$
17.471

$
16.108

$
12.623

$
13.905

$
14.105

$
10.563

$
9.102

$
9.649

$
7.677

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
26

43

35

40

85

93

113

82

80

—




APP II-6
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Small-Mid Cap Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.457

$
21.764

$
22.571

$
21.202

$
15.493

$
14.110

$
14.968

$
11.840

$
8.325

$
14.616

Accumulation Unit Value at end of period
$
27.005

$
22.457

$
21.764

$
22.571

$
21.202

$
15.493

$
14.110

$
14.968

$
11.840

$
8.325

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.825

$
19.415

$
20.348

$
19.316

$
14.264

$
13.127

$
14.073

$
11.249

$
7.993

$
—

Accumulation Unit Value at end of period
$
23.590

$
19.825

$
19.415

$
20.348

$
19.316

$
14.264

$
13.127

$
14.073

$
11.249

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
111

126

147

167

207

272

388

480

691

—

Franklin Strategic Income VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.278

$
23.574

$
24.693

$
24.411

$
23.805

$
21.245

$
20.868

$
18.944

$
15.165

$
17.207

Accumulation Unit Value at end of period
$
26.225

$
25.278

$
23.574

$
24.693

$
24.411

$
23.805

$
21.245

$
20.868

$
18.944

$
15.165

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

2

2

3

2

2

2

3

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.779

$
19.583

$
20.728

$
20.708

$
20.407

$
18.405

$
18.269

$
16.759

$
13.557

$
—

Accumulation Unit Value at end of period
$
21.332

$
20.779

$
19.583

$
20.728

$
20.708

$
20.407

$
18.405

$
18.269

$
16.759

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
153

167

193

271

337

433

633

864

1,133

—

Hartford Ultrashort Bond HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.142

$
1.141

$
1.151

$
1.161

$
1.172

$
1.183

$
1.194

$
1.206

$
1.216

$
1.202

Accumulation Unit Value at end of period
$
1.142

$
1.142

$
1.141

$
1.151

$
1.161

$
1.172

$
1.183

$
1.194

$
1.206

$
1.216

Number of Accumulation Units outstanding at end of period (in thousands)
12

17

19

19

19

19

157

157

207

200

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
0.964

$
0.974

$
0.992

$
1.011

$
1.032

$
1.053

$
1.074

$
1.096

$
1.117

$
—

Accumulation Unit Value at end of period
$
0.954

$
0.964

$
0.974

$
0.992

$
1.011

$
1.032

$
1.053

$
1.074

$
1.096

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,997

3,367

3,633

3,832

6,544

9,778

16,084

17,131

22,607

—

Invesco V.I. American Franchise Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.375

$
16.165

$
15.541

$
14.469

$
10.423

$
9.252

$
10.732

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.656

$
16.375

$
16.165

$
15.541

$
14.469

$
10.423

$
9.252

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.409

$
15.372

$
14.935

$
14.051

$
10.229

$
9.176

$
10.718

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.234

$
15.409

$
15.372

$
14.935

$
14.051

$
10.229

$
9.176

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
66

74

82

95

112

158

86

—

—

—



APP II-7
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. Core Equity Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.070

$
17.460

$
18.706

$
17.462

$
13.639

$
12.091

$
12.214

$
11.255

$
8.856

$
12.798

Accumulation Unit Value at end of period
$
21.378

$
19.070

$
17.460

$
18.706

$
17.462

$
13.639

$
12.091

$
12.214

$
11.255

$
8.856

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.841

$
15.582

$
16.870

$
15.914

$
12.561

$
11.253

$
11.488

$
10.697

$
8.506

$
—

Accumulation Unit Value at end of period
$
18.682

$
16.841

$
15.582

$
16.870

$
15.914

$
12.561

$
11.253

$
11.488

$
10.697

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
52

56

72

85

106

164

262

365

461

—

Invesco V.I. Government Money Market Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.678

$
9.761

$
9.853

$
9.946

$
9.989

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.641

$
9.678

$
9.761

$
9.853

$
9.946

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.320

$
9.500

$
9.690

$
9.885

$
9.976

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.187

$
9.320

$
9.500

$
9.690

$
9.885

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
197

228

189

176

203

—

—

—

—

—

Invesco V.I. Government Securities Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.489

$
1.485

$
1.494

$
1.448

$
1.501

$
1.479

$
1.384

$
1.325

$
1.338

$
1.203

Accumulation Unit Value at end of period
$
1.503

$
1.489

$
1.485

$
1.494

$
1.448

$
1.501

$
1.479

$
1.384

$
1.325

$
1.338

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

6

11

11

11

6

6

6

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.268

$
1.278

$
1.299

$
1.273

$
1.334

$
1.328

$
1.255

$
1.215

$
1.240

$
—

Accumulation Unit Value at end of period
$
1.267

$
1.268

$
1.278

$
1.299

$
1.273

$
1.334

$
1.328

$
1.255

$
1.215

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
3,246

3,797

4,320

5,230

6,449

9,297

11,398

15,653

19,347

—

Invesco V.I. International Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.548

$
2.584

$
2.671

$
2.687

$
2.280

$
1.992

$
2.156

$
1.929

$
1.440

$
2.438

Accumulation Unit Value at end of period
$
3.104

$
2.548

$
2.584

$
2.671

$
2.687

$
2.280

$
1.992

$
2.156

$
1.929

$
1.440

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.170

$
2.224

$
2.323

$
2.362

$
2.025

$
1.788

$
1.956

$
1.768

$
1.334

$
—

Accumulation Unit Value at end of period
$
2.616

$
2.170

$
2.224

$
2.323

$
2.362

$
2.025

$
1.788

$
1.956

$
1.768

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
466

553

659

788

962

936

1,264

1,569

2,140

—



APP II-8
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. Mid Cap Core Equity Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.732

$
2.431

$
2.557

$
2.472

$
1.937

$
1.763

$
1.901

$
1.682

$
1.304

$
1.841

Accumulation Unit Value at end of period
$
3.110

$
2.732

$
2.431

$
2.557

$
2.472

$
1.937

$
1.763

$
1.901

$
1.682

$
1.304

Number of Accumulation Units outstanding at end of period (in thousands)
6

6

6

6

6

6

7

16

15

16

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.327

$
2.093

$
2.225

$
2.173

$
1.721

$
1.583

$
1.725

$
1.542

$
1.208

$
—

Accumulation Unit Value at end of period
$
2.621

$
2.327

$
2.093

$
2.225

$
2.173

$
1.721

$
1.583

$
1.725

$
1.542

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
787

970

1,039

1,196

1,483

2,100

2,824

3,854

4,844

—

Invesco V.I. Mid Cap Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.409

$
14.438

$
14.402

$
13.458

$
9.916

$
10.027

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
17.484

$
14.409

$
14.438

$
14.402

$
13.458

$
9.916

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.696

$
13.868

$
13.980

$
13.201

$
9.829

$
10.009

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
16.445

$
13.696

$
13.868

$
13.980

$
13.201

$
9.829

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
5

2

4

3

3

14

—

—

—

—

Invesco V.I. Small Cap Equity Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.158

$
22.664

$
24.217

$
23.884

$
17.540

$
15.547

$
15.811

$
12.418

$
10.336

$
15.191

Accumulation Unit Value at end of period
$
28.423

$
25.158

$
22.664

$
24.217

$
23.884

$
17.540

$
15.547

$
15.811

$
12.418

$
10.336

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

8

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.901

$
19.938

$
21.529

$
21.457

$
15.924

$
14.264

$
14.658

$
11.634

$
9.786

$
—

Accumulation Unit Value at end of period
$
24.485

$
21.901

$
19.938

$
21.529

$
21.457

$
15.924

$
14.264

$
14.658

$
11.634

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
31

36

48

49

65

81

108

136

189

—

Invesco V.I. Value Opportunities Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.888

$
1.611

$
1.815

$
1.719

$
1.297

$
1.113

$
1.158

$
1.089

$
0.743

$
1.555

Accumulation Unit Value at end of period
$
2.196

$
1.888

$
1.611

$
1.815

$
1.719

$
1.297

$
1.113

$
1.158

$
1.089

$
0.743

Number of Accumulation Units outstanding at end of period (in thousands)
3

5

6

6

6

6

6

15

16

13

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.608

$
1.386

$
1.579

$
1.511

$
1.152

$
0.999

$
1.051

$
0.999

$
0.688

$
—

Accumulation Unit Value at end of period
$
1.851

$
1.608

$
1.386

$
1.579

$
1.511

$
1.152

$
0.999

$
1.051

$
0.999

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
739

845

879

1,147

1,414

2,030

2,720

4,017

5,368

—



APP II-9
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Core Equity Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.290

$
10.234

$
10.560

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.960

$
11.290

$
10.234

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.065

$
10.136

$
10.543

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.539

$
11.065

$
10.136

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
18

33

35

—

—

—

—

—

—

—

MFS Global Equity Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.209

$
25.589

$
26.204

$
25.467

$
20.115

$
16.465

$
17.373

$
15.610

$
11.940

$
18.201

Accumulation Unit Value at end of period
$
33.439

$
27.209

$
25.589

$
26.204

$
25.467

$
20.115

$
16.465

$
17.373

$
15.610

$
11.940

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.933

$
20.845

$
21.571

$
21.186

$
16.910

$
13.987

$
14.915

$
13.542

$
10.468

$
—

Accumulation Unit Value at end of period
$
26.674

$
21.933

$
20.845

$
21.571

$
21.186

$
16.910

$
13.987

$
14.915

$
13.542

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
10

13

18

22

31

41

36

43

62

—

MFS Growth Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.720

$
18.448

$
17.316

$
16.046

$
11.837

$
10.180

$
10.310

$
9.025

$
6.618

$
10.675

Accumulation Unit Value at end of period
$
24.367

$
18.720

$
18.448

$
17.316

$
16.046

$
11.837

$
10.180

$
10.310

$
9.025

$
6.618

Number of Accumulation Units outstanding at end of period (in thousands)
2

2

2

2

2

2

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.602

$
15.538

$
14.738

$
13.801

$
10.288

$
8.941

$
9.152

$
8.095

$
5.999

$
—

Accumulation Unit Value at end of period
$
20.097

$
15.602

$
15.538

$
14.738

$
13.801

$
10.288

$
8.941

$
9.152

$
8.095

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
66

63

72

96

117

84

128

129

178

—

MFS High Yield Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.461

$
10.165

$
10.714

$
10.521

$
10.151

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
12.112

$
11.461

$
10.165

$
10.714

$
10.521

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
5

6

6

6

6

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.046

$
9.901

$
10.546

$
10.465

$
10.137

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.552

$
11.046

$
9.901

$
10.546

$
10.465

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
94

94

112

130

181

—

—

—

—

—



APP II-10
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Investors Trust Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.069

$
18.658

$
18.796

$
17.094

$
13.068

$
11.070

$
11.424

$
10.381

$
8.259

$
12.459

Accumulation Unit Value at end of period
$
24.521

$
20.069

$
18.658

$
18.796

$
17.094

$
13.068

$
11.070

$
11.424

$
10.381

$
8.259

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.021

$
14.113

$
14.367

$
13.204

$
10.201

$
8.732

$
9.107

$
8.363

$
6.723

$
—

Accumulation Unit Value at end of period
$
18.162

$
15.021

$
14.113

$
14.367

$
13.204

$
10.201

$
8.732

$
9.107

$
8.363

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
128

146

167

213

278

419

596

800

1,051

—

MFS Massachusetts Investors Growth Stock Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.714

$
10.197

$
10.400

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.630

$
10.714

$
10.197

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.501

$
10.099

$
10.384

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.219

$
10.501

$
10.099

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
11

33

26

—

—

—

—

—

—

—

MFS Mid Cap Growth Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.047

$
9.668

$
9.330

$
8.652

$
6.343

$
5.495

$
5.903

$
4.596

$
3.273

$
6.821

Accumulation Unit Value at end of period
$
12.639

$
10.047

$
9.668

$
9.330

$
8.652

$
6.343

$
5.495

$
5.903

$
4.596

$
3.273

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
8.470

$
8.237

$
8.033

$
7.528

$
5.576

$
4.882

$
5.300

$
4.170

$
3.001

$
—

Accumulation Unit Value at end of period
$
10.544

$
8.470

$
8.237

$
8.033

$
7.528

$
5.576

$
4.882

$
5.300

$
4.170

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
102

117

142

182

217

273

372

518

606

—

MFS New Discovery Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.009

$
27.780

$
28.585

$
31.116

$
22.197

$
18.485

$
20.797

$
15.400

$
9.527

$
15.853

Accumulation Unit Value at end of period
$
37.648

$
30.009

$
27.780

$
28.585

$
31.116

$
22.197

$
18.485

$
20.797

$
15.400

$
9.527

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.307

$
21.804

$
22.672

$
24.941

$
17.979

$
15.131

$
17.203

$
12.873

$
8.048

$
—

Accumulation Unit Value at end of period
$
28.935

$
23.307

$
21.804

$
22.672

$
24.941

$
17.979

$
15.131

$
17.203

$
12.873

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
53

61

69

81

101

186

259

327

443

—




APP II-11
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Research International Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.442

$
9.600

$
10.521

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.999

$
9.442

$
9.600

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.254

$
9.508

$
10.504

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.637

$
9.254

$
9.508

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
55

62

72

—

—

—

—

—

—

—

MFS Research Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.648

$
20.099

$
20.129

$
18.440

$
14.072

$
12.114

$
12.285

$
10.701

$
8.276

$
13.072

Accumulation Unit Value at end of period
$
26.454

$
21.648

$
20.099

$
20.129

$
18.440

$
14.072

$
12.114

$
12.285

$
10.701

$
8.276

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.117

$
17.937

$
18.153

$
16.805

$
12.960

$
11.275

$
11.555

$
10.171

$
7.949

$
—

Accumulation Unit Value at end of period
$
23.118

$
19.117

$
17.937

$
18.153

$
16.805

$
12.960

$
11.275

$
11.555

$
10.171

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
6

6

8

8

9

15

11

14

26

—

MFS Total Return Bond Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.957

$
14.487

$
14.669

$
13.991

$
14.272

$
13.422

$
12.694

$
11.925

$
10.364

$
10.716

Accumulation Unit Value at end of period
$
15.476

$
14.957

$
14.487

$
14.669

$
13.991

$
14.272

$
13.422

$
12.694

$
11.925

$
10.364

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

1

1

3

3

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.212

$
12.932

$
13.233

$
12.755

$
13.148

$
12.495

$
11.942

$
11.337

$
9.957

$
—

Accumulation Unit Value at end of period
$
13.528

$
13.212

$
12.932

$
13.233

$
12.755

$
13.148

$
12.495

$
11.942

$
11.337

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
313

318

342

407

481

303

336

367

320

—

MFS Total Return Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.212

$
22.405

$
22.703

$
21.124

$
17.914

$
16.255

$
16.125

$
14.808

$
12.666

$
16.421

Accumulation Unit Value at end of period
$
26.932

$
24.212

$
22.405

$
22.703

$
21.124

$
17.914

$
16.255

$
16.125

$
14.808

$
12.666

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

2

2

4

6

14

14

15

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.998

$
17.766

$
18.193

$
17.106

$
14.660

$
13.443

$
13.476

$
12.506

$
10.810

$
—

Accumulation Unit Value at end of period
$
20.913

$
18.998

$
17.766

$
18.193

$
17.106

$
14.660

$
13.443

$
13.476

$
12.506

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
344

380

445

529

651

850

1,144

1,457

1,713

—



APP II-12
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Value Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
31.611

$
27.972

$
28.449

$
25.989

$
19.308

$
16.766

$
16.977

$
15.367

$
12.642

$
18.931

Accumulation Unit Value at end of period
$
36.839

$
31.611

$
27.972

$
28.449

$
25.989

$
19.308

$
16.766

$
16.977

$
15.367

$
12.642

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.385

$
24.488

$
25.168

$
23.234

$
17.443

$
15.307

$
15.663

$
14.327

$
11.911

$
—

Accumulation Unit Value at end of period
$
31.581

$
27.385

$
24.488

$
25.168

$
23.234

$
17.443

$
15.307

$
15.663

$
14.327

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
66

84

90

106

139

152

210

233

316

—

Putnam VT Investors Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.717

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
24.256

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

Templeton Developing Markets VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.882

$
19.611

$
24.570

$
26.988

$
27.447

$
24.434

$
29.251

$
25.062

$
14.598

$
31.104

Accumulation Unit Value at end of period
$
31.879

$
22.882

$
19.611

$
24.570

$
26.988

$
27.447

$
24.434

$
29.251

$
25.062

$
14.598

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

1

1

1

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.725

$
14.485

$
18.340

$
20.357

$
20.922

$
18.822

$
22.771

$
19.716

$
11.605

$
—

Accumulation Unit Value at end of period
$
23.058

$
16.725

$
14.485

$
18.340

$
20.357

$
20.922

$
18.822

$
22.771

$
19.716

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
33

42

49

67

71

114

138

176

193

—

Templeton Foreign VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.994

$
15.065

$
16.265

$
18.477

$
15.169

$
12.952

$
14.632

$
13.626

$
10.038

$
16.997

Accumulation Unit Value at end of period
$
18.487

$
15.994

$
15.065

$
16.265

$
18.477

$
15.169

$
12.952

$
14.632

$
13.626

$
10.038

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

1

1

1

1

3

4

4

4

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.934

$
12.311

$
13.432

$
15.420

$
12.793

$
11.039

$
12.602

$
11.860

$
8.829

$
—

Accumulation Unit Value at end of period
$
14.794

$
12.934

$
12.311

$
13.432

$
15.420

$
12.793

$
11.039

$
12.602

$
11.860

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
168

199

230

260

293

403

543

700

825

—



APP II-13
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Templeton Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.404

$
17.870

$
19.292

$
20.040

$
15.465

$
12.896

$
13.995

$
13.156

$
10.131

$
17.732

Accumulation Unit Value at end of period
$
22.776

$
19.404

$
17.870

$
19.292

$
20.040

$
15.465

$
12.896

$
13.995

$
13.156

$
10.131

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

1

1

3

3

3

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.308

$
14.247

$
15.543

$
16.317

$
12.724

$
10.722

$
11.760

$
11.171

$
8.693

$
—

Accumulation Unit Value at end of period
$
17.781

$
15.308

$
14.247

$
15.543

$
16.317

$
12.724

$
10.722

$
11.760

$
11.171

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
189

225

272

332

402

493

689

875

1,050

—




APP II-14
 
 
 

Series III
 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Asset Allocation Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.149

$
22.261

$
22.141

$
21.187

$
17.275

$
14.995

$
14.929

$
13.383

$
10.886

$
15.576

Accumulation Unit Value at end of period
$
27.831

$
24.149

$
22.261

$
22.141

$
21.187

$
17.275

$
14.995

$
14.929

$
13.383

$
10.886

Number of Accumulation Units outstanding at end of period (in thousands)
4

4

6

11

11

11

13

20

28

32

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.654

$
18.308

$
18.402

$
17.795

$
14.662

$
12.861

$
12.940

$
11.722

$
9.636

$
—

Accumulation Unit Value at end of period
$
22.414

$
19.654

$
18.308

$
18.402

$
17.795

$
14.662

$
12.861

$
12.940

$
11.722

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
114

135

186

224

299

438

512

680

885

—

American Funds Blue Chip Income and Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.105

$
1.788

$
1.858

$
1.624

$
1.232

$
1.091

$
1.110

$
0.997

$
0.786

$
1.248

Accumulation Unit Value at end of period
$
2.442

$
2.105

$
1.788

$
1.858

$
1.624

$
1.232

$
1.091

$
1.110

$
0.997

$
0.786

Number of Accumulation Units outstanding at end of period (in thousands)
83

115

128

154

190

298

346

270

230

263

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.820

$
1.563

$
1.641

$
1.450

$
1.111

$
0.994

$
1.022

$
0.928

$
0.739

$
—

Accumulation Unit Value at end of period
$
2.090

$
1.820

$
1.563

$
1.641

$
1.450

$
1.111

$
0.994

$
1.022

$
0.928

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
567

625

735

964

1,444

2,437

2,977

4,220

5,357

—

American Funds Bond Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.669

$
17.310

$
17.410

$
16.679

$
17.192

$
16.455

$
15.641

$
14.819

$
13.273

$
14.766

Accumulation Unit Value at end of period
$
18.162

$
17.669

$
17.310

$
17.410

$
16.679

$
17.192

$
16.455

$
15.641

$
14.819

$
13.273

Number of Accumulation Units outstanding at end of period (in thousands)
60

69

72

78

89

74

77

85

81

68

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.476

$
14.332

$
14.567

$
14.102

$
14.689

$
14.207

$
13.647

$
13.067

$
11.826

$
—

Accumulation Unit Value at end of period
$
14.724

$
14.476

$
14.332

$
14.567

$
14.102

$
14.689

$
14.207

$
13.647

$
13.067

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
85

103

123

154

219

393

386

515

624

—

American Funds Global Bond Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.233

$
12.993

$
13.659

$
13.587

$
14.066

$
13.358

$
12.887

$
12.351

$
11.356

$
11.067

Accumulation Unit Value at end of period
$
14.020

$
13.233

$
12.993

$
13.659

$
13.587

$
14.066

$
13.358

$
12.887

$
12.351

$
11.356

Number of Accumulation Units outstanding at end of period (in thousands)
10

15

17

24

33

31

34

39

42

32

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.884

$
11.791

$
12.527

$
12.592

$
13.173

$
12.643

$
12.326

$
11.938

$
11.092

$
—

Accumulation Unit Value at end of period
$
12.459

$
11.884

$
11.791

$
12.527

$
12.592

$
13.173

$
12.643

$
12.326

$
11.938

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
27

27

31

41

70

108

124

155

163

—



APP II-15
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Global Growth and Income Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.983

$
15.016

$
15.350

$
14.655

$
12.062

$
10.348

$
10.969

$
9.896

$
7.143

$
12.246

Accumulation Unit Value at end of period
$
19.978

$
15.983

$
15.016

$
15.350

$
14.655

$
12.062

$
10.348

$
10.969

$
9.896

$
7.143

Number of Accumulation Units outstanding at end of period (in thousands)
16

20

22

30

41

59

76

85

90

95

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.278

$
13.556

$
14.004

$
13.511

$
11.238

$
9.743

$
10.436

$
9.515

$
6.941

$
—

Accumulation Unit Value at end of period
$
17.661

$
14.278

$
13.556

$
14.004

$
13.511

$
11.238

$
9.743

$
10.436

$
9.515

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
23

24

28

33

56

87

112

156

172

—

American Funds Global Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.031

$
26.092

$
24.607

$
24.256

$
18.938

$
15.583

$
17.249

$
15.568

$
11.033

$
18.061

Accumulation Unit Value at end of period
$
33.934

$
26.031

$
26.092

$
24.607

$
24.256

$
18.938

$
15.583

$
17.249

$
15.568

$
11.033

Number of Accumulation Units outstanding at end of period (in thousands)
5

4

4

6

9

10

11

12

12

12

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.707

$
17.935

$
17.094

$
17.028

$
13.434

$
11.171

$
12.496

$
11.397

$
8.163

$
—

Accumulation Unit Value at end of period
$
22.842

$
17.707

$
17.935

$
17.094

$
17.028

$
13.434

$
11.171

$
12.496

$
11.397

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
28

34

49

65

87

119

148

218

327

—

American Funds Global Small Capitalization Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.421

$
26.099

$
26.252

$
25.926

$
20.383

$
17.395

$
21.698

$
17.876

$
11.177

$
24.254

Accumulation Unit Value at end of period
$
32.982

$
26.421

$
26.099

$
26.252

$
25.926

$
20.383

$
17.395

$
21.698

$
17.876

$
11.177

Number of Accumulation Units outstanding at end of period (in thousands)
4

4

5

6

8

8

10

11

13

13

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.001

$
17.969

$
18.265

$
18.229

$
14.483

$
12.490

$
15.744

$
13.108

$
8.282

$
—

Accumulation Unit Value at end of period
$
22.236

$
18.001

$
17.969

$
18.265

$
18.229

$
14.483

$
12.490

$
15.744

$
13.108

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
13

18

24

35

43

57

85

192

236

—

American Funds Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.912

$
24.790

$
23.397

$
21.746

$
16.857

$
14.421

$
15.194

$
12.912

$
9.341

$
16.813

Accumulation Unit Value at end of period
$
34.233

$
26.912

$
24.790

$
23.397

$
21.746

$
16.857

$
14.421

$
15.194

$
12.912

$
9.341

Number of Accumulation Units outstanding at end of period (in thousands)
26

29

32

37

43

51

62

67

72

74

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.680

$
14.596

$
13.921

$
13.075

$
10.243

$
8.855

$
9.428

$
8.096

$
5.919

$
—

Accumulation Unit Value at end of period
$
19.737

$
15.680

$
14.596

$
13.921

$
13.075

$
10.243

$
8.855

$
9.428

$
8.096

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
241

287

389

504

735

1,188

1,412

2,089

2,593

—



APP II-16
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Growth-Income Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.766

$
24.205

$
24.062

$
21.935

$
16.571

$
14.225

$
14.614

$
13.227

$
10.165

$
16.494

Accumulation Unit Value at end of period
$
32.479

$
26.766

$
24.205

$
24.062

$
21.935

$
16.571

$
14.225

$
14.614

$
13.227

$
10.165

Number of Accumulation Units outstanding at end of period (in thousands)
24

30

32

34

42

53

63

80

84

85

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.944

$
19.140

$
19.228

$
17.713

$
13.522

$
11.731

$
12.179

$
11.139

$
8.651

$
—

Accumulation Unit Value at end of period
$
25.149

$
20.944

$
19.140

$
19.228

$
17.713

$
13.522

$
11.731

$
12.179

$
11.139

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
192

232

316

403

575

922

1,069

1,319

1,655

—

American Funds International Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.277

$
17.805

$
18.808

$
19.485

$
16.156

$
13.819

$
16.200

$
15.236

$
10.740

$
18.715

Accumulation Unit Value at end of period
$
23.948

$
18.277

$
17.805

$
18.808

$
19.485

$
16.156

$
13.819

$
16.200

$
15.236

$
10.740

Number of Accumulation Units outstanding at end of period (in thousands)
27

36

37

38

38

35

39

37

41

36

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.749

$
12.551

$
13.398

$
14.027

$
11.753

$
10.159

$
12.035

$
11.438

$
8.148

$
—

Accumulation Unit Value at end of period
$
16.531

$
12.749

$
12.551

$
13.398

$
14.027

$
11.753

$
10.159

$
12.035

$
11.438

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
80

88

111

128

172

238

296

408

483

—

American Funds New World Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.807

$
29.518

$
30.737

$
33.648

$
30.468

$
26.080

$
30.566

$
26.153

$
17.625

$
30.846

Accumulation Unit Value at end of period
$
39.541

$
30.807

$
29.518

$
30.737

$
33.648

$
30.468

$
26.080

$
30.566

$
26.153

$
17.625

Number of Accumulation Units outstanding at end of period (in thousands)
3

2

2

3

3

4

5

7

7

7

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.837

$
23.081

$
24.288

$
26.868

$
24.586

$
21.268

$
25.189

$
21.779

$
14.832

$
—

Accumulation Unit Value at end of period
$
30.276

$
23.837

$
23.081

$
24.288

$
26.868

$
24.586

$
21.268

$
25.189

$
21.779

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
9

11

15

19

23

43

59

120

137

—

Fidelity VIP Dynamic Capital Appreciation Portfolio (a)
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
22.213

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
33.207

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—



APP II-17
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Flex Cap Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.718

$
18.400

$
17.781

$
16.901

$
12.398

$
11.444

$
12.124

$
10.523

$
7.982

$
12.444

Accumulation Unit Value at end of period
$
22.301

$
17.718

$
18.400

$
17.781

$
16.901

$
12.398

$
11.444

$
12.124

$
10.523

$
7.982

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

2

2

2

2

2

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.647

$
16.421

$
16.036

$
15.403

$
11.419

$
10.651

$
11.403

$
10.002

$
7.666

$
—

Accumulation Unit Value at end of period
$
19.489

$
15.647

$
16.421

$
16.036

$
15.403

$
11.419

$
10.651

$
11.403

$
10.002

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
6

11

12

13

19

31

25

33

33

—

Franklin Income VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.783

$
21.037

$
22.826

$
22.005

$
19.478

$
17.438

$
17.177

$
15.375

$
11.436

$
16.396

Accumulation Unit Value at end of period
$
25.863

$
23.783

$
21.037

$
22.826

$
22.005

$
19.478

$
17.438

$
17.177

$
15.375

$
11.436

Number of Accumulation Units outstanding at end of period (in thousands)
19

25

26

33

46

55

61

74

87

95

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.669

$
18.474

$
20.258

$
19.736

$
17.653

$
15.971

$
15.898

$
14.381

$
10.809

$
—

Accumulation Unit Value at end of period
$
22.242

$
20.669

$
18.474

$
20.258

$
19.736

$
17.653

$
15.971

$
15.898

$
14.381

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
158

172

212

271

364

562

733

998

1,242

—

Franklin Large Cap Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.705

$
19.209

$
18.341

$
16.448

$
12.896

$
11.574

$
11.851

$
10.711

$
8.327

$
12.827

Accumulation Unit Value at end of period
$
23.759

$
18.705

$
19.209

$
18.341

$
16.448

$
12.896

$
11.574

$
11.851

$
10.711

$
8.327

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

2

2

2

2

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.255

$
16.869

$
16.277

$
14.751

$
11.687

$
10.600

$
10.969

$
10.018

$
7.870

$
—

Accumulation Unit Value at end of period
$
20.432

$
16.255

$
16.869

$
16.277

$
14.751

$
11.687

$
10.600

$
10.969

$
10.018

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
19

25

27

34

50

65

80

87

109

—

Franklin Mutual Global Discovery VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
33.075

$
29.736

$
31.126

$
29.697

$
23.469

$
20.880

$
21.701

$
19.548

$
15.988

$
22.537

Accumulation Unit Value at end of period
$
35.614

$
33.075

$
29.736

$
31.126

$
29.697

$
23.469

$
20.880

$
21.701

$
19.548

$
15.988

Number of Accumulation Units outstanding at end of period (in thousands)
8

11

11

15

19

30

35

43

45

49

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.916

$
26.272

$
27.790

$
26.794

$
21.398

$
19.239

$
20.206

$
18.394

$
15.202

$
—

Accumulation Unit Value at end of period
$
30.811

$
28.916

$
26.272

$
27.790

$
26.794

$
21.398

$
19.239

$
20.206

$
18.394

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
26

28

30

39

48

73

89

117

135

—



APP II-18
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Mutual Shares VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.234

$
24.535

$
26.029

$
24.506

$
19.270

$
17.011

$
17.337

$
15.725

$
12.582

$
20.176

Accumulation Unit Value at end of period
$
30.332

$
28.234

$
24.535

$
26.029

$
24.506

$
19.270

$
17.011

$
17.337

$
15.725

$
12.582

Number of Accumulation Units outstanding at end of period (in thousands)
18

23

25

32

37

46

56

65

70

71

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.072

$
18.505

$
19.839

$
18.875

$
14.999

$
13.380

$
13.781

$
12.631

$
10.213

$
—

Accumulation Unit Value at end of period
$
22.401

$
21.072

$
18.505

$
19.839

$
18.875

$
14.999

$
13.380

$
13.781

$
12.631

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
110

138

171

212

291

495

588

777

1,002

—

Franklin Rising Dividends VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.222

$
23.659

$
24.764

$
22.972

$
17.864

$
16.092

$
15.311

$
12.799

$
11.000

$
15.218

Accumulation Unit Value at end of period
$
32.540

$
27.222

$
23.659

$
24.764

$
22.972

$
17.864

$
16.092

$
15.311

$
12.799

$
11.000

Number of Accumulation Units outstanding at end of period (in thousands)
7

11

12

15

20

24

31

31

32

30

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.799

$
20.902

$
22.110

$
20.726

$
16.288

$
14.826

$
14.256

$
12.043

$
10.460

$
—

Accumulation Unit Value at end of period
$
28.152

$
23.799

$
20.902

$
22.110

$
20.726

$
16.288

$
14.826

$
14.256

$
12.043

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
40

43

60

75

103

147

180

249

273

—

Franklin Small Cap Value VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.923

$
13.884

$
15.120

$
15.162

$
11.224

$
9.562

$
10.020

$
7.881

$
6.154

$
9.266

Accumulation Unit Value at end of period
$
19.664

$
17.923

$
13.884

$
15.120

$
15.162

$
11.224

$
9.562

$
10.020

$
7.881

$
6.154

Number of Accumulation Units outstanding at end of period (in thousands)
3

3

3

3

3

3

3

3

3

2

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.258

$
12.728

$
14.007

$
14.194

$
10.619

$
9.141

$
9.681

$
7.695

$
6.072

$
—

Accumulation Unit Value at end of period
$
17.651

$
16.258

$
12.728

$
14.007

$
14.194

$
10.619

$
9.141

$
9.681

$
7.695

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
4

8

9

11

11

22

25

22

16

—

Franklin Small-Mid Cap Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.338

$
21.627

$
22.407

$
21.027

$
15.350

$
13.965

$
14.799

$
11.695

$
8.215

$
14.408

Accumulation Unit Value at end of period
$
26.888

$
22.338

$
21.627

$
22.407

$
21.027

$
15.350

$
13.965

$
14.799

$
11.695

$
8.215

Number of Accumulation Units outstanding at end of period (in thousands)
3

6

6

6

6

7

10

12

13

16

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.743

$
11.489

$
12.029

$
11.407

$
8.415

$
7.737

$
8.286

$
6.617

$
4.697

$
—

Accumulation Unit Value at end of period
$
13.987

$
11.743

$
11.489

$
12.029

$
11.407

$
8.415

$
7.737

$
8.286

$
6.617

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
42

46

55

78

108

157

194

260

337

—




APP II-19
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Strategic Income VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.145

$
23.426

$
24.513

$
24.209

$
23.585

$
21.027

$
20.634

$
18.712

$
14.964

$
16.963

Accumulation Unit Value at end of period
$
26.113

$
25.145

$
23.426

$
24.513

$
24.209

$
23.585

$
21.027

$
20.634

$
18.712

$
14.964

Number of Accumulation Units outstanding at end of period (in thousands)
4

4

5

9

15

18

20

21

25

25

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.383

$
19.190

$
20.293

$
20.252

$
19.938

$
17.964

$
17.814

$
16.325

$
13.193

$
—

Accumulation Unit Value at end of period
$
20.946

$
20.383

$
19.190

$
20.293

$
20.252

$
19.938

$
17.964

$
17.814

$
16.325

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
56

67

85

101

138

206

213

259

273

—

Hartford Ultrashort Bond HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.136

$
1.134

$
1.142

$
1.151

$
1.161

$
1.171

$
1.181

$
1.191

$
1.200

$
1.185

Accumulation Unit Value at end of period
$
1.137

$
1.136

$
1.134

$
1.142

$
1.151

$
1.161

$
1.171

$
1.181

$
1.191

$
1.200

Number of Accumulation Units outstanding at end of period (in thousands)
4

4

4

—

—

42

44

92

106

166

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
0.935

$
0.944

$
0.960

$
0.978

$
0.997

$
1.016

$
1.035

$
1.055

$
1.075

$
—

Accumulation Unit Value at end of period
$
0.926

$
0.935

$
0.944

$
0.960

$
0.978

$
0.997

$
1.016

$
1.035

$
1.055

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
702

727

879

1,188

1,289

1,989

4,431

3,123

4,604

—

Invesco V.I. American Franchise Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.471

$
16.243

$
15.600

$
14.509

$
10.442

$
9.259

$
10.734

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.796

$
16.471

$
16.243

$
15.600

$
14.509

$
10.442

$
9.259

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

3

2

3

3

3

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.499

$
15.446

$
14.992

$
14.090

$
10.247

$
9.183

$
10.720

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.365

$
15.499

$
15.446

$
14.992

$
14.090

$
10.247

$
9.183

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
14

23

27

29

31

55

26

—

—

—

Invesco V.I. Core Equity Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.297

$
17.650

$
18.891

$
17.617

$
13.746

$
12.174

$
12.285

$
11.310

$
8.890

$
12.835

Accumulation Unit Value at end of period
$
21.654

$
19.297

$
17.650

$
18.891

$
17.617

$
13.746

$
12.174

$
12.285

$
11.310

$
8.890

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

2

2

2

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.041

$
15.752

$
17.037

$
16.056

$
12.660

$
11.330

$
11.555

$
10.749

$
8.539

$
—

Accumulation Unit Value at end of period
$
18.924

$
17.041

$
15.752

$
17.037

$
16.056

$
12.660

$
11.330

$
11.555

$
10.749

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
26

31

42

46

64

119

127

138

167

—



APP II-20
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. Government Money Market Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.713

$
9.787

$
9.869

$
9.952

$
9.990

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.685

$
9.713

$
9.787

$
9.869

$
9.952

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.354

$
9.524

$
9.706

$
9.891

$
9.977

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.229

$
9.354

$
9.524

$
9.706

$
9.891

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
20

20

8

33

52

—

—

—

—

—

Invesco V.I. Government Securities Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.487

$
1.481

$
1.489

$
1.442

$
1.493

$
1.470

$
1.374

$
1.314

$
1.326

$
1.191

Accumulation Unit Value at end of period
$
1.503

$
1.487

$
1.481

$
1.489

$
1.442

$
1.493

$
1.470

$
1.374

$
1.314

$
1.326

Number of Accumulation Units outstanding at end of period (in thousands)
22

21

27

56

58

43

44

49

87

118

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.287

$
1.296

$
1.317

$
1.289

$
1.349

$
1.341

$
1.267

$
1.225

$
1.249

$
—

Accumulation Unit Value at end of period
$
1.288

$
1.287

$
1.296

$
1.317

$
1.289

$
1.349

$
1.341

$
1.267

$
1.225

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,342

1,409

1,551

1,931

2,892

3,724

3,685

5,374

6,307

—

Invesco V.I. International Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.545

$
2.578

$
2.662

$
2.676

$
2.268

$
1.980

$
2.141

$
1.913

$
1.427

$
2.413

Accumulation Unit Value at end of period
$
3.104

$
2.545

$
2.578

$
2.662

$
2.676

$
2.268

$
1.980

$
2.141

$
1.913

$
1.427

Number of Accumulation Units outstanding at end of period (in thousands)
17

20

21

23

24

30

45

47

55

58

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.203

$
2.256

$
2.354

$
2.392

$
2.048

$
1.807

$
1.974

$
1.783

$
1.344

$
—

Accumulation Unit Value at end of period
$
2.659

$
2.203

$
2.256

$
2.354

$
2.392

$
2.048

$
1.807

$
1.974

$
1.783

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
125

130

171

207

262

345

387

518

638

—

Invesco V.I. Mid Cap Core Equity Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.729

$
2.426

$
2.549

$
2.462

$
1.928

$
1.752

$
1.887

$
1.668

$
1.292

$
1.823

Accumulation Unit Value at end of period
$
3.109

$
2.729

$
2.426

$
2.549

$
2.462

$
1.928

$
1.752

$
1.887

$
1.668

$
1.292

Number of Accumulation Units outstanding at end of period (in thousands)
29

30

37

46

47

74

82

88

77

85

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.363

$
2.123

$
2.254

$
2.200

$
1.741

$
1.599

$
1.741

$
1.555

$
1.217

$
—

Accumulation Unit Value at end of period
$
2.664

$
2.363

$
2.123

$
2.254

$
2.200

$
1.741

$
1.599

$
1.741

$
1.555

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
176

225

291

356

528

939

1,031

1,551

1,852

—



APP II-21
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. Mid Cap Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.479

$
14.493

$
14.443

$
13.482

$
9.924

$
10.029

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
17.586

$
14.479

$
14.493

$
14.443

$
13.482

$
9.924

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

3

3

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.763

$
13.921

$
14.019

$
13.225

$
9.837

$
10.011

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
16.541

$
13.763

$
13.921

$
14.019

$
13.225

$
9.837

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

2

2

2

2

—

—

—

—

Invesco V.I. Small Cap Equity Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.319

$
22.786

$
24.323

$
23.964

$
17.582

$
15.569

$
15.816

$
12.410

$
10.319

$
15.151

Accumulation Unit Value at end of period
$
28.633

$
25.319

$
22.786

$
24.323

$
23.964

$
17.582

$
15.569

$
15.816

$
12.410

$
10.319

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

1

1

1

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.192

$
20.183

$
21.771

$
21.677

$
16.071

$
14.381

$
14.764

$
11.707

$
9.837

$
—

Accumulation Unit Value at end of period
$
24.835

$
22.192

$
20.183

$
21.771

$
21.677

$
16.071

$
14.381

$
14.764

$
11.707

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
7

8

11

13

17

33

40

49

64

—

Invesco V.I. Value Opportunities Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.886

$
1.607

$
1.809

$
1.711

$
1.290

$
1.106

$
1.150

$
1.081

$
0.736

$
1.540

Accumulation Unit Value at end of period
$
2.196

$
1.886

$
1.607

$
1.809

$
1.711

$
1.290

$
1.106

$
1.150

$
1.081

$
0.736

Number of Accumulation Units outstanding at end of period (in thousands)
2

2

3

5

11

12

12

12

13

13

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.633

$
1.406

$
1.600

$
1.529

$
1.165

$
1.009

$
1.061

$
1.007

$
0.693

$
—

Accumulation Unit Value at end of period
$
1.882

$
1.633

$
1.406

$
1.600

$
1.529

$
1.165

$
1.009

$
1.061

$
1.007

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
170

190

253

303

392

646

688

825

1,042

—

MFS Global Equity Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.065

$
25.428

$
26.013

$
25.257

$
19.929

$
16.296

$
17.178

$
15.419

$
11.782

$
17.942

Accumulation Unit Value at end of period
$
33.295

$
27.065

$
25.428

$
26.013

$
25.257

$
19.929

$
16.296

$
17.178

$
15.419

$
11.782

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

2

2

2

2

3

3

4

4

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.283

$
19.257

$
19.908

$
19.533

$
15.576

$
12.870

$
13.710

$
12.436

$
9.603

$
—

Accumulation Unit Value at end of period
$
24.692

$
20.283

$
19.257

$
19.908

$
19.533

$
15.576

$
12.870

$
13.710

$
12.436

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
4

3

2

3

8

8

7

33

33

—



APP II-22
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Growth Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.621

$
18.332

$
17.189

$
15.913

$
11.727

$
10.075

$
10.194

$
8.914

$
6.530

$
10.523

Accumulation Unit Value at end of period
$
24.262

$
18.621

$
18.332

$
17.189

$
15.913

$
11.727

$
10.075

$
10.194

$
8.914

$
6.530

Number of Accumulation Units outstanding at end of period (in thousands)
4

4

4

5

5

3

3

3

3

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.613

$
10.559

$
10.005

$
9.360

$
6.970

$
6.052

$
6.188

$
5.468

$
4.048

$
—

Accumulation Unit Value at end of period
$
13.684

$
10.613

$
10.559

$
10.005

$
9.360

$
6.970

$
6.052

$
6.188

$
5.468

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
15

16

24

28

33

44

54

51

55

—

MFS High Yield Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.502

$
10.191

$
10.731

$
10.527

$
10.153

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
12.167

$
11.502

$
10.191

$
10.731

$
10.527

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1

3

3

3

2

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.085

$
9.926

$
10.562

$
10.470

$
10.138

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.604

$
11.085

$
9.926

$
10.562

$
10.470

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
38

39

51

63

88

—

—

—

—

—

MFS Investors Trust Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.963

$
18.541

$
18.659

$
16.952

$
12.947

$
10.956

$
11.296

$
10.254

$
8.150

$
12.282

Accumulation Unit Value at end of period
$
24.415

$
19.963

$
18.541

$
18.659

$
16.952

$
12.947

$
10.956

$
11.296

$
10.254

$
8.150

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

1

2

2

2

2

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.171

$
14.239

$
14.481

$
13.295

$
10.261

$
8.775

$
9.142

$
8.387

$
6.736

$
—

Accumulation Unit Value at end of period
$
18.360

$
15.171

$
14.239

$
14.481

$
13.295

$
10.261

$
8.775

$
9.142

$
8.387

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
43

52

66

90

133

193

226

269

319

—

MFS Massachusetts Investors Growth Stock Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.735

$
10.206

$
10.402

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.670

$
10.735

$
10.206

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.521

$
10.109

$
10.385

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.257

$
10.521

$
10.109

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
2

6

6

—

—

—

—

—

—

—



APP II-23
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Mid Cap Growth Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.007

$
9.620

$
9.274

$
8.592

$
6.292

$
5.446

$
5.844

$
4.546

$
3.234

$
6.732

Accumulation Unit Value at end of period
$
12.601

$
10.007

$
9.620

$
9.274

$
8.592

$
6.292

$
5.446

$
5.844

$
4.546

$
3.234

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

10

12

12

14

1

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.310

$
9.044

$
8.812

$
8.249

$
6.105

$
5.340

$
5.790

$
4.552

$
3.272

$
—

Accumulation Unit Value at end of period
$
11.601

$
9.310

$
9.044

$
8.812

$
8.249

$
6.105

$
5.340

$
5.790

$
4.552

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
12

16

23

29

43

79

100

143

169

—

MFS New Discovery Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
29.849

$
27.606

$
28.376

$
30.858

$
21.991

$
18.295

$
20.563

$
15.211

$
9.401

$
15.628

Accumulation Unit Value at end of period
$
37.486

$
29.849

$
27.606

$
28.376

$
30.858

$
21.991

$
18.295

$
20.563

$
15.211

$
9.401

Number of Accumulation Units outstanding at end of period (in thousands)
1

3

3

3

3

3

3

3

2

1

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.743

$
14.713

$
15.284

$
16.796

$
12.096

$
10.169

$
11.550

$
8.634

$
5.393

$
—

Accumulation Unit Value at end of period
$
19.564

$
15.743

$
14.713

$
15.284

$
16.796

$
12.096

$
10.169

$
11.550

$
8.634

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
24

32

37

54

74

117

132

157

191

—

MFS Research International Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.460

$
9.609

$
10.522

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
12.034

$
9.460

$
9.609

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.272

$
9.516

$
10.506

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.671

$
9.272

$
9.516

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
7

8

12

—

—

—

—

—

—

—

MFS Research Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.906

$
20.318

$
20.328

$
18.603

$
14.183

$
12.197

$
12.357

$
10.753

$
8.308

$
13.109

Accumulation Unit Value at end of period
$
26.796

$
21.906

$
20.318

$
20.328

$
18.603

$
14.183

$
12.197

$
12.357

$
10.753

$
8.308

Number of Accumulation Units outstanding at end of period (in thousands)
2

2

3

5

6

6

7

9

9

12

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.345

$
18.132

$
18.333

$
16.955

$
13.062

$
11.352

$
11.622

$
10.220

$
7.979

$
—

Accumulation Unit Value at end of period
$
23.417

$
19.345

$
18.132

$
18.333

$
16.955

$
13.062

$
11.352

$
11.622

$
10.220

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

1

—

—

—

—

2

3

—




APP II-24
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Total Return Bond Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.135

$
14.644

$
14.814

$
14.115

$
14.384

$
13.514

$
12.768

$
11.982

$
10.403

$
10.746

Accumulation Unit Value at end of period
$
15.675

$
15.135

$
14.644

$
14.814

$
14.115

$
14.384

$
13.514

$
12.768

$
11.982

$
10.403

Number of Accumulation Units outstanding at end of period (in thousands)
16

16

16

20

20

8

5

6

6

1

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.369

$
13.072

$
13.364

$
12.868

$
13.251

$
12.581

$
12.012

$
11.392

$
9.995

$
—

Accumulation Unit Value at end of period
$
13.702

$
13.369

$
13.072

$
13.364

$
12.868

$
13.251

$
12.581

$
12.012

$
11.392

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
29

29

34

39

93

121

136

96

80

—

MFS Total Return Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.083

$
22.264

$
22.538

$
20.950

$
17.748

$
16.089

$
15.944

$
14.627

$
12.499

$
16.188

Accumulation Unit Value at end of period
$
26.817

$
24.083

$
22.264

$
22.538

$
20.950

$
17.748

$
16.089

$
15.944

$
14.627

$
12.499

Number of Accumulation Units outstanding at end of period (in thousands)
8

9

10

14

16

25

26

29

33

37

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.368

$
17.159

$
17.553

$
16.489

$
14.116

$
12.931

$
12.950

$
12.006

$
10.367

$
—

Accumulation Unit Value at end of period
$
20.238

$
18.368

$
17.159

$
17.553

$
16.489

$
14.116

$
12.931

$
12.950

$
12.006

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
124

147

179

217

282

417

491

684

810

—

MFS Value Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
31.754

$
28.070

$
28.520

$
26.028

$
19.318

$
16.758

$
16.952

$
15.329

$
12.598

$
18.846

Accumulation Unit Value at end of period
$
37.043

$
31.754

$
28.070

$
28.520

$
26.028

$
19.318

$
16.758

$
16.952

$
15.329

$
12.598

Number of Accumulation Units outstanding at end of period (in thousands)
4

5

6

7

7

7

7

9

7

4

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.762

$
24.800

$
25.463

$
23.484

$
17.613

$
15.440

$
15.784

$
14.423

$
11.979

$
—

Accumulation Unit Value at end of period
$
32.047

$
27.762

$
24.800

$
25.463

$
23.484

$
17.613

$
15.440

$
15.784

$
14.423

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
34

36

42

49

61

87

88

157

163

—

Putnam VT Investors Fund (a)
 
 
 
 
 
 
 
 
 
 
With MAV/EPB Death Benefit and The Hartford's Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
30.187

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
30.187

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—



APP II-25
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Templeton Developing Markets VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.761

$
19.487

$
24.391

$
26.764

$
27.193

$
24.183

$
28.923

$
24.755

$
14.405

$
30.662

Accumulation Unit Value at end of period
$
31.742

$
22.761

$
19.487

$
24.391

$
26.764

$
27.193

$
24.183

$
28.923

$
24.755

$
14.405

Number of Accumulation Units outstanding at end of period (in thousands)
—

2

2

2

3

1

3

5

5

5

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.563

$
17.791

$
22.504

$
24.954

$
25.621

$
23.026

$
27.830

$
24.071

$
14.154

$
—

Accumulation Unit Value at end of period
$
28.378

$
20.563

$
17.791

$
22.504

$
24.954

$
25.621

$
23.026

$
27.830

$
24.071

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
7

8

9

14

17

40

50

63

68

—

Templeton Foreign VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.909

$
14.971

$
16.147

$
18.324

$
15.029

$
12.819

$
14.467

$
13.459

$
9.905

$
16.755

Accumulation Unit Value at end of period
$
18.407

$
15.909

$
14.971

$
16.147

$
18.324

$
15.029

$
12.819

$
14.467

$
13.459

$
9.905

Number of Accumulation Units outstanding at end of period (in thousands)
7

7

7

7

6

6

8

8

9

13

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.650

$
12.030

$
13.112

$
15.037

$
12.463

$
10.743

$
12.252

$
11.519

$
8.566

$
—

Accumulation Unit Value at end of period
$
14.484

$
12.650

$
12.030

$
13.112

$
15.037

$
12.463

$
10.743

$
12.252

$
11.519

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
46

60

74

95

118

176

195

238

291

—

Templeton Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.301

$
17.757

$
19.151

$
19.874

$
15.322

$
12.764

$
13.838

$
12.995

$
9.997

$
17.480

Accumulation Unit Value at end of period
$
22.678

$
19.301

$
17.757

$
19.151

$
19.874

$
15.322

$
12.764

$
13.838

$
12.995

$
9.997

Number of Accumulation Units outstanding at end of period (in thousands)
3

3

4

5

11

17

22

32

38

43

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.438

$
14.354

$
15.644

$
16.406

$
12.781

$
10.760

$
11.789

$
11.187

$
8.697

$
—

Accumulation Unit Value at end of period
$
17.950

$
15.438

$
14.354

$
15.644

$
16.406

$
12.781

$
10.760

$
11.789

$
11.187

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
69

78

86

111

165

271

353

483

653

—

(a) Inception date October 13, 2016.



APP II-26
 
 
 

Talcott Resolution Life and Annuity Insurance Company
Series II/IIR
 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Asset Allocation Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.278

$
22.402

$
22.303

$
21.364

$
17.437

$
15.150

$
15.099

$
13.549

$
11.032

$
15.800

Accumulation Unit Value at end of period
$
27.952

$
24.278

$
22.402

$
22.303

$
21.364

$
17.437

$
15.150

$
15.099

$
13.549

$
11.032

Number of Accumulation Units outstanding at end of period (in thousands)
970

1,085

1,287

1,566

1,978

2,557

3,192

3,796

4,294

4,906

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.842

$
17.570

$
17.677

$
17.111

$
14.113

$
12.392

$
12.481

$
11.317

$
9.312

$
—

Accumulation Unit Value at end of period
$
21.467

$
18.842

$
17.570

$
17.677

$
17.111

$
14.113

$
12.392

$
12.481

$
11.317

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
878

1,049

1,199

1,468

1,771

2,543

3,428

4,420

5,606

—

American Funds Blue Chip Income and Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.109

$
1.793

$
1.865

$
1.632

$
1.239

$
1.098

$
1.119

$
1.006

$
0.793

$
1.261

Accumulation Unit Value at end of period
$
2.445

$
2.109

$
1.793

$
1.865

$
1.632

$
1.239

$
1.098

$
1.119

$
1.006

$
0.793

Number of Accumulation Units outstanding at end of period (in thousands)
7,867

8,860

9,957

12,019

15,184

19,555

24,166

28,857

32,842

38,813

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.792

$
1.540

$
1.619

$
1.432

$
1.098

$
0.984

$
1.013

$
0.920

$
0.733

$
—

Accumulation Unit Value at end of period
$
2.056

$
1.792

$
1.540

$
1.619

$
1.432

$
1.098

$
0.984

$
1.013

$
0.920

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
7,584

9,014

10,679

13,819

16,677

22,658

29,178

37,614

47,437

—

American Funds Bond Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.763

$
17.420

$
17.538

$
16.818

$
17.353

$
16.625

$
15.818

$
15.003

$
13.450

$
14.979

Accumulation Unit Value at end of period
$
18.240

$
17.763

$
17.420

$
17.538

$
16.818

$
17.353

$
16.625

$
15.818

$
15.003

$
13.450

Number of Accumulation Units outstanding at end of period (in thousands)
530

552

587

686

891

1,146

1,422

1,750

2,063

2,046

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.709

$
14.577

$
14.830

$
14.372

$
14.985

$
14.508

$
13.950

$
13.370

$
12.113

$
—

Accumulation Unit Value at end of period
$
14.946

$
14.709

$
14.577

$
14.830

$
14.372

$
14.985

$
14.508

$
13.950

$
13.370

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
2,027

2,187

2,415

2,839

3,434

2,369

2,936

3,786

4,618

—

American Funds Global Bond Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.098

$
12.873

$
13.547

$
13.489

$
13.978

$
13.288

$
12.833

$
12.311

$
11.330

$
11.054

Accumulation Unit Value at end of period
$
13.863

$
13.098

$
12.873

$
13.547

$
13.489

$
13.978

$
13.288

$
12.833

$
12.311

$
11.330

Number of Accumulation Units outstanding at end of period (in thousands)
98

112

133

149

188

203

231

238

231

312

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.762

$
11.683

$
12.424

$
12.501

$
13.092

$
12.577

$
12.274

$
11.899

$
11.067

$
—

Accumulation Unit Value at end of period
$
12.320

$
11.762

$
11.683

$
12.424

$
12.501

$
13.092

$
12.577

$
12.274

$
11.899

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
191

226

266

342

452

876

1,156

1,256

1,222

—



APP II-27
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Global Growth and Income Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.812

$
14.871

$
15.217

$
14.542

$
11.981

$
10.289

$
10.917

$
9.859

$
7.124

$
12.224

Accumulation Unit Value at end of period
$
19.745

$
15.812

$
14.871

$
15.217

$
14.542

$
11.981

$
10.289

$
10.917

$
9.859

$
7.124

Number of Accumulation Units outstanding at end of period (in thousands)
147

167

217

247

332

369

497

585

597

580

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.126

$
13.425

$
13.882

$
13.407

$
11.162

$
9.687

$
10.387

$
9.479

$
6.922

$
—

Accumulation Unit Value at end of period
$
17.455

$
14.126

$
13.425

$
13.882

$
13.407

$
11.162

$
9.687

$
10.387

$
9.479

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
249

303

383

552

650

1,252

1,676

2,225

2,550

—

American Funds Global Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.170

$
26.257

$
24.788

$
24.459

$
19.115

$
15.745

$
17.445

$
15.761

$
11.181

$
18.321

Accumulation Unit Value at end of period
$
34.080

$
26.170

$
26.257

$
24.788

$
24.459

$
19.115

$
15.745

$
17.445

$
15.761

$
11.181

Number of Accumulation Units outstanding at end of period (in thousands)
316

352

410

480

609

782

989

1,214

1,438

1,689

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.289

$
22.599

$
21.560

$
21.498

$
16.979

$
14.133

$
15.825

$
14.447

$
10.357

$
—

Accumulation Unit Value at end of period
$
28.724

$
22.289

$
22.599

$
21.560

$
21.498

$
16.979

$
14.133

$
15.825

$
14.447

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
255

304

358

426

520

807

1,069

1,380

1,819

—

American Funds Global Small Capitalization Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.562

$
26.264

$
26.445

$
26.142

$
20.574

$
17.575

$
21.944

$
18.097

$
11.327

$
24.603

Accumulation Unit Value at end of period
$
33.124

$
26.562

$
26.264

$
26.445

$
26.142

$
20.574

$
17.575

$
21.944

$
18.097

$
11.327

Number of Accumulation Units outstanding at end of period (in thousands)
71

76

92

105

143

188

245

303

336

378

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.821

$
23.802

$
24.219

$
24.195

$
19.242

$
16.611

$
20.959

$
17.467

$
11.048

$
—

Accumulation Unit Value at end of period
$
29.395

$
23.821

$
23.802

$
24.219

$
24.195

$
19.242

$
16.611

$
20.959

$
17.467

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
207

245

301

373

444

481

676

990

1,184

—

American Funds Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.055

$
24.947

$
23.568

$
21.928

$
17.015

$
14.571

$
15.367

$
13.072

$
9.466

$
17.056

Accumulation Unit Value at end of period
$
34.382

$
27.055

$
24.947

$
23.568

$
21.928

$
17.015

$
14.571

$
15.367

$
13.072

$
9.466

Number of Accumulation Units outstanding at end of period (in thousands)
1,054

1,192

1,396

1,626

2,132

2,781

3,461

4,176

4,853

5,669

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.031

$
20.529

$
19.599

$
18.427

$
14.450

$
12.504

$
13.327

$
11.456

$
8.383

$
—

Accumulation Unit Value at end of period
$
27.705

$
22.031

$
20.529

$
19.599

$
18.427

$
14.450

$
12.504

$
13.327

$
11.456

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,745

2,130

2,450

3,003

3,859

6,063

8,486

10,656

13,385

—



APP II-28
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Growth-Income Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.908

$
24.359

$
24.238

$
22.118

$
16.726

$
14.373

$
14.780

$
13.391

$
10.301

$
16.732

Accumulation Unit Value at end of period
$
32.619

$
26.908

$
24.359

$
24.238

$
22.118

$
16.726

$
14.373

$
14.780

$
13.391

$
10.301

Number of Accumulation Units outstanding at end of period (in thousands)
1,583

1,806

2,121

2,573

3,451

4,536

5,611

6,590

7,499

8,636

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.248

$
18.523

$
18.627

$
17.176

$
13.126

$
11.398

$
11.845

$
10.845

$
8.431

$
—

Accumulation Unit Value at end of period
$
24.290

$
20.248

$
18.523

$
18.627

$
17.176

$
13.126

$
11.398

$
11.845

$
10.845

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,835

2,191

2,582

3,196

4,094

6,204

8,500

10,642

13,600

—

American Funds International Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.375

$
17.917

$
18.946

$
19.648

$
16.307

$
13.963

$
16.384

$
15.425

$
10.884

$
18.985

Accumulation Unit Value at end of period
$
24.052

$
18.375

$
17.917

$
18.946

$
19.648

$
16.307

$
13.963

$
16.384

$
15.425

$
10.884

Number of Accumulation Units outstanding at end of period (in thousands)
263

287

342

406

494

686

839

974

1,076

1,248

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.341

$
16.102

$
17.206

$
18.033

$
15.124

$
13.086

$
15.518

$
14.764

$
10.527

$
—

Accumulation Unit Value at end of period
$
21.166

$
16.341

$
16.102

$
17.206

$
18.033

$
15.124

$
13.086

$
15.518

$
14.764

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
545

643

703

819

977

1,434

2,007

2,512

3,154

—

American Funds New World Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.971

$
29.705

$
30.962

$
33.928

$
30.753

$
26.350

$
30.914

$
26.476

$
17.861

$
31.291

Accumulation Unit Value at end of period
$
39.711

$
30.971

$
29.705

$
30.962

$
33.928

$
30.753

$
26.350

$
30.914

$
26.476

$
17.861

Number of Accumulation Units outstanding at end of period (in thousands)
44

51

68

80

107

118

155

201

229

259

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.716

$
23.956

$
25.233

$
27.942

$
25.595

$
22.162

$
26.275

$
22.740

$
15.502

$
—

Accumulation Unit Value at end of period
$
31.360

$
24.716

$
23.956

$
25.233

$
27.942

$
25.595

$
22.162

$
26.275

$
22.740

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
122

139

170

196

237

476

640

983

1,116

—

Fidelity VIP Dynamic Capital Appreciation Portfolio (a)
 
 
 
 
 
 
 
 
 
 
With The Hartford's Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
21.567

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.837

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
11

—

—

—

—

—

—

—

—

—



APP II-29
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Flex Cap Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.509

$
18.202

$
17.607

$
16.752

$
12.301

$
11.366

$
12.053

$
10.472

$
7.951

$
12.409

Accumulation Unit Value at end of period
$
22.016

$
17.509

$
18.202

$
17.607

$
16.752

$
12.301

$
11.366

$
12.053

$
10.472

$
7.951

Number of Accumulation Units outstanding at end of period (in thousands)
8

8

19

18

14

15

21

23

24

19

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.463

$
16.244

$
15.879

$
15.268

$
11.330

$
10.578

$
11.337

$
9.954

$
7.637

$
—

Accumulation Unit Value at end of period
$
19.240

$
15.463

$
16.244

$
15.879

$
15.268

$
11.330

$
10.578

$
11.337

$
9.954

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
26

35

49

58

77

150

194

237

253

—

Franklin Income VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.759

$
21.036

$
22.849

$
22.049

$
19.536

$
17.507

$
17.263

$
15.468

$
11.516

$
16.527

Accumulation Unit Value at end of period
$
25.811

$
23.759

$
21.036

$
22.849

$
22.049

$
19.536

$
17.507

$
17.263

$
15.468

$
11.516

Number of Accumulation Units outstanding at end of period (in thousands)
242

295

352

422

560

682

878

1,036

1,156

1,289

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.368

$
18.224

$
20.003

$
19.507

$
17.466

$
15.817

$
15.761

$
14.271

$
10.737

$
—

Accumulation Unit Value at end of period
$
21.896

$
20.368

$
18.224

$
20.003

$
19.507

$
17.466

$
15.817

$
15.761

$
14.271

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
876

1,013

1,182

1,462

1,806

3,384

4,660

5,732

6,844

—

Franklin Large Cap Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.686

$
19.209

$
18.360

$
16.481

$
12.935

$
11.620

$
11.911

$
10.776

$
8.385

$
12.930

Accumulation Unit Value at end of period
$
23.712

$
18.686

$
19.209

$
18.360

$
16.481

$
12.935

$
11.620

$
11.911

$
10.776

$
8.385

Number of Accumulation Units outstanding at end of period (in thousands)
18

19

22

22

25

28

36

31

35

38

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.018

$
16.640

$
16.072

$
14.580

$
11.563

$
10.498

$
10.874

$
9.941

$
7.818

$
—

Accumulation Unit Value at end of period
$
20.114

$
16.018

$
16.640

$
16.072

$
14.580

$
11.563

$
10.498

$
10.874

$
9.941

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
102

115

143

188

233

392

514

646

847

—

Franklin Mutual Global Discovery VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
32.926

$
29.632

$
31.048

$
29.652

$
23.457

$
20.890

$
21.733

$
19.597

$
16.043

$
22.638

Accumulation Unit Value at end of period
$
35.418

$
32.926

$
29.632

$
31.048

$
29.652

$
23.457

$
20.890

$
21.733

$
19.597

$
16.043

Number of Accumulation Units outstanding at end of period (in thousands)
69

77

90

105

167

195

268

313

315

332

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.523

$
25.941

$
27.468

$
26.510

$
21.192

$
19.073

$
20.052

$
18.272

$
15.116

$
—

Accumulation Unit Value at end of period
$
30.363

$
28.523

$
25.941

$
27.468

$
26.510

$
21.192

$
19.073

$
20.052

$
18.272

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
171

201

237

272

345

634

864

1,087

1,369

—



APP II-30
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Mutual Shares VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.384

$
24.690

$
26.220

$
24.711

$
19.450

$
17.187

$
17.534

$
15.919

$
12.750

$
20.467

Accumulation Unit Value at end of period
$
30.463

$
28.384

$
24.690

$
26.220

$
24.711

$
19.450

$
17.187

$
17.534

$
15.919

$
12.750

Number of Accumulation Units outstanding at end of period (in thousands)
173

199

241

273

398

511

650

759

863

1,015

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.507

$
18.905

$
20.289

$
19.323

$
15.369

$
13.725

$
14.150

$
12.982

$
10.507

$
—

Accumulation Unit Value at end of period
$
22.841

$
21.507

$
18.905

$
20.289

$
19.323

$
15.369

$
13.725

$
14.150

$
12.982

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
814

948

1,128

1,352

1,667

2,024

2,696

3,462

4,441

—

Franklin Rising Dividends VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.099

$
23.576

$
24.702

$
22.937

$
17.855

$
16.100

$
15.333

$
12.831

$
11.039

$
15.287

Accumulation Unit Value at end of period
$
32.362

$
27.099

$
23.576

$
24.702

$
22.937

$
17.855

$
16.100

$
15.333

$
12.831

$
11.039

Number of Accumulation Units outstanding at end of period (in thousands)
132

156

184

221

291

337

417

484

532

599

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.476

$
20.639

$
21.853

$
20.506

$
16.131

$
14.698

$
14.147

$
11.963

$
10.401

$
—

Accumulation Unit Value at end of period
$
27.742

$
23.476

$
20.639

$
21.853

$
20.506

$
16.131

$
14.698

$
14.147

$
11.963

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
617

727

879

1,102

1,304

2,007

2,544

3,082

3,247

—

Franklin Small Cap Value VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.757

$
13.770

$
15.010

$
15.067

$
11.165

$
9.521

$
9.987

$
7.863

$
6.146

$
9.264

Accumulation Unit Value at end of period
$
19.463

$
17.757

$
13.770

$
15.010

$
15.067

$
11.165

$
9.521

$
9.987

$
7.863

$
6.146

Number of Accumulation Units outstanding at end of period (in thousands)
13

15

19

19

28

37

35

31

14

4

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.108

$
12.623

$
13.905

$
14.105

$
10.563

$
9.102

$
9.649

$
7.677

$
6.064

$
—

Accumulation Unit Value at end of period
$
17.471

$
16.108

$
12.623

$
13.905

$
14.105

$
10.563

$
9.102

$
9.649

$
7.677

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
90

107

122

143

175

145

258

277

210

—

Franklin Small-Mid Cap Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.457

$
21.764

$
22.571

$
21.202

$
15.493

$
14.110

$
14.968

$
11.840

$
8.325

$
14.616

Accumulation Unit Value at end of period
$
27.005

$
22.457

$
21.764

$
22.571

$
21.202

$
15.493

$
14.110

$
14.968

$
11.840

$
8.325

Number of Accumulation Units outstanding at end of period (in thousands)
38

42

47

48

61

64

80

91

102

123

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.825

$
19.415

$
20.348

$
19.316

$
14.264

$
13.127

$
14.073

$
11.249

$
7.993

$
—

Accumulation Unit Value at end of period
$
23.590

$
19.825

$
19.415

$
20.348

$
19.316

$
14.264

$
13.127

$
14.073

$
11.249

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
256

330

399

470

596

771

938

1,356

1,621

—




APP II-31
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Strategic Income VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.278

$
23.574

$
24.693

$
24.411

$
23.805

$
21.245

$
20.868

$
18.944

$
15.165

$
17.207

Accumulation Unit Value at end of period
$
26.225

$
25.278

$
23.574

$
24.693

$
24.411

$
23.805

$
21.245

$
20.868

$
18.944

$
15.165

Number of Accumulation Units outstanding at end of period (in thousands)
93

111

139

180

201

248

300

355

354

397

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.779

$
19.583

$
20.728

$
20.708

$
20.407

$
18.405

$
18.269

$
16.759

$
13.557

$
—

Accumulation Unit Value at end of period
$
21.332

$
20.779

$
19.583

$
20.728

$
20.708

$
20.407

$
18.405

$
18.269

$
16.759

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
341

438

542

665

854

1,517

1,797

2,164

2,723

—

Hartford Ultrashort Bond HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.142

$
1.141

$
1.151

$
1.161

$
1.172

$
1.183

$
1.194

$
1.206

$
1.216

$
1.202

Accumulation Unit Value at end of period
$
1.142

$
1.142

$
1.141

$
1.151

$
1.161

$
1.172

$
1.183

$
1.194

$
1.206

$
1.216

Number of Accumulation Units outstanding at end of period (in thousands)
720

737

748

1,084

1,497

3,533

4,168

3,428

6,154

10,892

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
0.964

$
0.974

$
0.992

$
1.011

$
1.032

$
1.053

$
1.074

$
1.096

$
1.117

$
—

Accumulation Unit Value at end of period
$
0.954

$
0.964

$
0.974

$
0.992

$
1.011

$
1.032

$
1.053

$
1.074

$
1.096

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
5,145

6,017

7,991

10,612

14,155

25,265

36,251

37,863

52,220

—

Invesco V.I. American Franchise Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.375

$
16.165

$
15.541

$
14.469

$
10.423

$
9.252

$
10.732

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.656

$
16.375

$
16.165

$
15.541

$
14.469

$
10.423

$
9.252

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
26

28

41

41

45

55

28

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.409

$
15.372

$
14.935

$
14.051

$
10.229

$
9.176

$
10.718

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.234

$
15.409

$
15.372

$
14.935

$
14.051

$
10.229

$
9.176

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
126

160

198

245

325

438

268

—

—

—

Invesco V.I. Core Equity Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.070

$
17.460

$
18.706

$
17.462

$
13.639

$
12.091

$
12.214

$
11.255

$
8.856

$
12.798

Accumulation Unit Value at end of period
$
21.378

$
19.070

$
17.460

$
18.706

$
17.462

$
13.639

$
12.091

$
12.214

$
11.255

$
8.856

Number of Accumulation Units outstanding at end of period (in thousands)
8

9

10

11

12

18

20

19

27

31

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.841

$
15.582

$
16.870

$
15.914

$
12.561

$
11.253

$
11.488

$
10.697

$
8.506

$
—

Accumulation Unit Value at end of period
$
18.682

$
16.841

$
15.582

$
16.870

$
15.914

$
12.561

$
11.253

$
11.488

$
10.697

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
300

353

387

434

559

510

693

927

1,229

—



APP II-32
 
 
 

Invesco V.I. Government Money Market Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.678

$
9.761

$
9.853

$
9.946

$
9.989

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.641

$
9.678

$
9.761

$
9.853

$
9.946

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
70

117

125

103

106

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.320

$
9.500

$
9.690

$
9.885

$
9.976

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.187

$
9.320

$
9.500

$
9.690

$
9.885

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
441

685

1,050

713

488

—

—

—

—

—

Invesco V.I. Government Securities Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.489

$
1.485

$
1.494

$
1.448

$
1.501

$
1.479

$
1.384

$
1.325

$
1.338

$
1.203

Accumulation Unit Value at end of period
$
1.503

$
1.489

$
1.485

$
1.494

$
1.448

$
1.501

$
1.479

$
1.384

$
1.325

$
1.338

Number of Accumulation Units outstanding at end of period (in thousands)
1,046

1,046

1,102

983

1,244

1,757

2,315

2,787

3,201

4,224

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.268

$
1.278

$
1.299

$
1.273

$
1.334

$
1.328

$
1.255

$
1.215

$
1.240

$
—

Accumulation Unit Value at end of period
$
1.267

$
1.268

$
1.278

$
1.299

$
1.273

$
1.334

$
1.328

$
1.255

$
1.215

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
5,874

6,797

7,494

9,584

12,175

18,991

23,618

29,090

36,975

—

Invesco V.I. International Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.548

$
2.584

$
2.671

$
2.687

$
2.280

$
1.992

$
2.156

$
1.929

$
1.440

$
2.438

Accumulation Unit Value at end of period
$
3.104

$
2.548

$
2.584

$
2.671

$
2.687

$
2.280

$
1.992

$
2.156

$
1.929

$
1.440

Number of Accumulation Units outstanding at end of period (in thousands)
110

118

182

191

282

208

229

164

204

188

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.170

$
2.224

$
2.323

$
2.362

$
2.025

$
1.788

$
1.956

$
1.768

$
1.334

$
—

Accumulation Unit Value at end of period
$
2.616

$
2.170

$
2.224

$
2.323

$
2.362

$
2.025

$
1.788

$
1.956

$
1.768

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,576

1,966

2,171

2,417

2,801

3,111

4,170

5,152

6,359

—

Invesco V.I. Mid Cap Core Equity Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.732

$
2.431

$
2.557

$
2.472

$
1.937

$
1.763

$
1.901

$
1.682

$
1.304

$
1.841

Accumulation Unit Value at end of period
$
3.110

$
2.732

$
2.431

$
2.557

$
2.472

$
1.937

$
1.763

$
1.901

$
1.682

$
1.304

Number of Accumulation Units outstanding at end of period (in thousands)
515

627

694

741

978

1,177

1,539

1,683

1,840

2,267

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.327

$
2.093

$
2.225

$
2.173

$
1.721

$
1.583

$
1.725

$
1.542

$
1.208

$
—

Accumulation Unit Value at end of period
$
2.621

$
2.327

$
2.093

$
2.225

$
2.173

$
1.721

$
1.583

$
1.725

$
1.542

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,985

2,490

2,875

3,394

3,936

4,608

6,072

8,082

11,304

—



APP II-33
 
 
 

Invesco V.I. Mid Cap Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.409

$
14.438

$
14.402

$
13.458

$
9.916

$
10.027

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
17.484

$
14.409

$
14.438

$
14.402

$
13.458

$
9.916

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
7

7

6

5

2

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.696

$
13.868

$
13.980

$
13.201

$
9.829

$
10.009

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
16.445

$
13.696

$
13.868

$
13.980

$
13.201

$
9.829

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
17

17

23

26

37

33

—

—

—

—

Invesco V.I. Small Cap Equity Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.158

$
22.664

$
24.217

$
23.884

$
17.540

$
15.547

$
15.811

$
12.418

$
10.336

$
15.191

Accumulation Unit Value at end of period
$
28.423

$
25.158

$
22.664

$
24.217

$
23.884

$
17.540

$
15.547

$
15.811

$
12.418

$
10.336

Number of Accumulation Units outstanding at end of period (in thousands)
12

12

11

12

15

9

12

10

10

11

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.901

$
19.938

$
21.529

$
21.457

$
15.924

$
14.264

$
14.658

$
11.634

$
9.786

$
—

Accumulation Unit Value at end of period
$
24.485

$
21.901

$
19.938

$
21.529

$
21.457

$
15.924

$
14.264

$
14.658

$
11.634

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
106

127

156

175

215

240

340

410

500

—

Invesco V.I. Value Opportunities Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.888

$
1.611

$
1.815

$
1.719

$
1.297

$
1.113

$
1.158

$
1.089

$
0.743

$
1.555

Accumulation Unit Value at end of period
$
2.196

$
1.888

$
1.611

$
1.815

$
1.719

$
1.297

$
1.113

$
1.158

$
1.089

$
0.743

Number of Accumulation Units outstanding at end of period (in thousands)
232

281

371

416

531

563

619

723

833

920

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.608

$
1.386

$
1.579

$
1.511

$
1.152

$
0.999

$
1.051

$
0.999

$
0.688

$
—

Accumulation Unit Value at end of period
$
1.851

$
1.608

$
1.386

$
1.579

$
1.511

$
1.152

$
0.999

$
1.051

$
0.999

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,389

1,619

1,875

2,204

2,632

3,998

5,140

6,852

10,280

—

MFS Core Equity Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.290

$
10.234

$
10.560

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.960

$
11.290

$
10.234

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
84

89

100

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.065

$
10.136

$
10.543

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.539

$
11.065

$
10.136

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
38

36

49

—

—

—

—

—

—

—



APP II-34
 
 
 

MFS Global Equity Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.209

$
25.589

$
26.204

$
25.467

$
20.115

$
16.465

$
17.373

$
15.610

$
11.940

$
18.201

Accumulation Unit Value at end of period
$
33.439

$
27.209

$
25.589

$
26.204

$
25.467

$
20.115

$
16.465

$
17.373

$
15.610

$
11.940

Number of Accumulation Units outstanding at end of period (in thousands)
9

9

8

7

14

15

18

19

22

23

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.933

$
20.845

$
21.571

$
21.186

$
16.910

$
13.987

$
14.915

$
13.542

$
10.468

$
—

Accumulation Unit Value at end of period
$
26.674

$
21.933

$
20.845

$
21.571

$
21.186

$
16.910

$
13.987

$
14.915

$
13.542

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
47

61

70

88

98

75

77

111

147

—

MFS Growth Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.720

$
18.448

$
17.316

$
16.046

$
11.837

$
10.180

$
10.310

$
9.025

$
6.618

$
10.675

Accumulation Unit Value at end of period
$
24.367

$
18.720

$
18.448

$
17.316

$
16.046

$
11.837

$
10.180

$
10.310

$
9.025

$
6.618

Number of Accumulation Units outstanding at end of period (in thousands)
40

42

46

45

66

52

52

62

74

94

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.602

$
15.538

$
14.738

$
13.801

$
10.288

$
8.941

$
9.152

$
8.095

$
5.999

$
—

Accumulation Unit Value at end of period
$
20.097

$
15.602

$
15.538

$
14.738

$
13.801

$
10.288

$
8.941

$
9.152

$
8.095

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
289

378

419

476

597

300

312

350

399

—

MFS High Yield Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.461

$
10.165

$
10.714

$
10.521

$
10.151

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
12.112

$
11.461

$
10.165

$
10.714

$
10.521

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
129

136

127

166

213

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.046

$
9.901

$
10.546

$
10.465

$
10.137

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.552

$
11.046

$
9.901

$
10.546

$
10.465

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
376

426

420

533

782

—

—

—

—

—

MFS Investors Trust Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.069

$
18.658

$
18.796

$
17.094

$
13.068

$
11.070

$
11.424

$
10.381

$
8.259

$
12.459

Accumulation Unit Value at end of period
$
24.521

$
20.069

$
18.658

$
18.796

$
17.094

$
13.068

$
11.070

$
11.424

$
10.381

$
8.259

Number of Accumulation Units outstanding at end of period (in thousands)
33

34

39

39

67

64

80

95

119

141

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.021

$
14.113

$
14.367

$
13.204

$
10.201

$
8.732

$
9.107

$
8.363

$
6.723

$
—

Accumulation Unit Value at end of period
$
18.162

$
15.021

$
14.113

$
14.367

$
13.204

$
10.201

$
8.732

$
9.107

$
8.363

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
245

293

394

519

661

1,112

1,449

1,865

2,270

—



APP II-35
 
 
 

MFS Massachusetts Investors Growth Stock Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.714

$
10.197

$
10.400

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.630

$
10.714

$
10.197

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
31

32

39

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.501

$
10.099

$
10.384

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.219

$
10.501

$
10.099

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
55

61

86

—

—

—

—

—

—

—

MFS Mid Cap Growth Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.047

$
9.668

$
9.330

$
8.652

$
6.343

$
5.495

$
5.903

$
4.596

$
3.273

$
6.821

Accumulation Unit Value at end of period
$
12.639

$
10.047

$
9.668

$
9.330

$
8.652

$
6.343

$
5.495

$
5.903

$
4.596

$
3.273

Number of Accumulation Units outstanding at end of period (in thousands)
59

45

56

66

99

124

155

172

202

217

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
8.470

$
8.237

$
8.033

$
7.528

$
5.576

$
4.882

$
5.300

$
4.170

$
3.001

$
—

Accumulation Unit Value at end of period
$
10.544

$
8.470

$
8.237

$
8.033

$
7.528

$
5.576

$
4.882

$
5.300

$
4.170

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
166

214

272

291

396

597

770

1,163

1,405

—

MFS New Discovery Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.009

$
27.780

$
28.585

$
31.116

$
22.197

$
18.485

$
20.797

$
15.400

$
9.527

$
15.853

Accumulation Unit Value at end of period
$
37.648

$
30.009

$
27.780

$
28.585

$
31.116

$
22.197

$
18.485

$
20.797

$
15.400

$
9.527

Number of Accumulation Units outstanding at end of period (in thousands)
10

12

15

16

19

17

27

30

24

26

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.307

$
21.804

$
22.672

$
24.941

$
17.979

$
15.131

$
17.203

$
12.873

$
8.048

$
—

Accumulation Unit Value at end of period
$
28.935

$
23.307

$
21.804

$
22.672

$
24.941

$
17.979

$
15.131

$
17.203

$
12.873

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
92

110

137

202

261

458

663

941

1,107

—

MFS Research International Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.442

$
9.600

$
10.521

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.999

$
9.442

$
9.600

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
12

6

10

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.254

$
9.508

$
10.504

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.637

$
9.254

$
9.508

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
97

117

64

—

—

—

—

—

—

—




APP II-36
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Research Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.648

$
20.099

$
20.129

$
18.440

$
14.072

$
12.114

$
12.285

$
10.701

$
8.276

$
13.072

Accumulation Unit Value at end of period
$
26.454

$
21.648

$
20.099

$
20.129

$
18.440

$
14.072

$
12.114

$
12.285

$
10.701

$
8.276

Number of Accumulation Units outstanding at end of period (in thousands)
13

15

17

21

31

33

44

47

42

50

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.117

$
17.937

$
18.153

$
16.805

$
12.960

$
11.275

$
11.555

$
10.171

$
7.949

$
—

Accumulation Unit Value at end of period
$
23.118

$
19.117

$
17.937

$
18.153

$
16.805

$
12.960

$
11.275

$
11.555

$
10.171

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
27

28

34

57

49

55

88

66

90

—

MFS Total Return Bond Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.957

$
14.487

$
14.669

$
13.991

$
14.272

$
13.422

$
12.694

$
11.925

$
10.364

$
10.716

Accumulation Unit Value at end of period
$
15.476

$
14.957

$
14.487

$
14.669

$
13.991

$
14.272

$
13.422

$
12.694

$
11.925

$
10.364

Number of Accumulation Units outstanding at end of period (in thousands)
154

184

113

107

143

153

124

89

105

43

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.212

$
12.932

$
13.233

$
12.755

$
13.148

$
12.495

$
11.942

$
11.337

$
9.957

$
—

Accumulation Unit Value at end of period
$
13.528

$
13.212

$
12.932

$
13.233

$
12.755

$
13.148

$
12.495

$
11.942

$
11.337

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
2,006

2,098

2,369

2,777

3,112

748

898

993

846

—

MFS Total Return Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.212

$
22.405

$
22.703

$
21.124

$
17.914

$
16.255

$
16.125

$
14.808

$
12.666

$
16.421

Accumulation Unit Value at end of period
$
26.932

$
24.212

$
22.405

$
22.703

$
21.124

$
17.914

$
16.255

$
16.125

$
14.808

$
12.666

Number of Accumulation Units outstanding at end of period (in thousands)
292

337

393

470

641

846

1,078

1,251

1,410

1,654

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.998

$
17.766

$
18.193

$
17.106

$
14.660

$
13.443

$
13.476

$
12.506

$
10.810

$
—

Accumulation Unit Value at end of period
$
20.913

$
18.998

$
17.766

$
18.193

$
17.106

$
14.660

$
13.443

$
13.476

$
12.506

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
596

686

827

1,032

1,292

2,110

2,817

3,470

4,266

—

MFS Value Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
31.611

$
27.972

$
28.449

$
25.989

$
19.308

$
16.766

$
16.977

$
15.367

$
12.642

$
18.931

Accumulation Unit Value at end of period
$
36.839

$
31.611

$
27.972

$
28.449

$
25.989

$
19.308

$
16.766

$
16.977

$
15.367

$
12.642

Number of Accumulation Units outstanding at end of period (in thousands)
36

42

46

55

75

76

97

98

99

110

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.385

$
24.488

$
25.168

$
23.234

$
17.443

$
15.307

$
15.663

$
14.327

$
11.911

$
—

Accumulation Unit Value at end of period
$
31.581

$
27.385

$
24.488

$
25.168

$
23.234

$
17.443

$
15.307

$
15.663

$
14.327

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
247

295

350

399

485

519

662

781

925

—



APP II-37
 
 
 

Putnam VT Investors Fund (a)
 
 
 
 
 
 
 
 
 
 
With MAV/EPB Death Benefit and The Hartford's Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
24.256

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
8

—

—

—

—

—

—

—

—

—

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
24.256

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
8

—

—

—

—

—

—

—

—

—

Templeton Developing Markets VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.882

$
19.611

$
24.570

$
26.988

$
27.447

$
24.434

$
29.251

$
25.062

$
14.598

$
31.104

Accumulation Unit Value at end of period
$
31.879

$
22.882

$
19.611

$
24.570

$
26.988

$
27.447

$
24.434

$
29.251

$
25.062

$
14.598

Number of Accumulation Units outstanding at end of period (in thousands)
14

15

12

13

19

27

35

46

48

41

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.725

$
14.485

$
18.340

$
20.357

$
20.922

$
18.822

$
22.771

$
19.716

$
11.605

$
—

Accumulation Unit Value at end of period
$
23.058

$
16.725

$
14.485

$
18.340

$
20.357

$
20.922

$
18.822

$
22.771

$
19.716

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
65

85

114

133

155

261

333

511

704

—

Templeton Foreign VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.994

$
15.065

$
16.265

$
18.477

$
15.169

$
12.952

$
14.632

$
13.626

$
10.038

$
16.997

Accumulation Unit Value at end of period
$
18.487

$
15.994

$
15.065

$
16.265

$
18.477

$
15.169

$
12.952

$
14.632

$
13.626

$
10.038

Number of Accumulation Units outstanding at end of period (in thousands)
63

78

87

94

116

155

201

231

266

314

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.934

$
12.311

$
13.432

$
15.420

$
12.793

$
11.039

$
12.602

$
11.860

$
8.829

$
—

Accumulation Unit Value at end of period
$
14.794

$
12.934

$
12.311

$
13.432

$
15.420

$
12.793

$
11.039

$
12.602

$
11.860

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
491

574

695

782

856

1,023

1,284

1,635

1,991

—

Templeton Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.404

$
17.870

$
19.292

$
20.040

$
15.465

$
12.896

$
13.995

$
13.156

$
10.131

$
17.732

Accumulation Unit Value at end of period
$
22.776

$
19.404

$
17.870

$
19.292

$
20.040

$
15.465

$
12.896

$
13.995

$
13.156

$
10.131

Number of Accumulation Units outstanding at end of period (in thousands)
96

105

123

144

176

211

263

337

369

438

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.308

$
14.247

$
15.543

$
16.317

$
12.724

$
10.722

$
11.760

$
11.171

$
8.693

$
—

Accumulation Unit Value at end of period
$
17.781

$
15.308

$
14.247

$
15.543

$
16.317

$
12.724

$
10.722

$
11.760

$
11.171

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
321

408

507

617

759

1,274

1,601

2,083

2,558

—




APP II-38
 
 
 

Series III
 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Asset Allocation Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.149

$
22.261

$
22.141

$
21.187

$
17.275

$
14.995

$
14.929

$
13.383

$
10.886

$
15.576

Accumulation Unit Value at end of period
$
27.831

$
24.149

$
22.261

$
22.141

$
21.187

$
17.275

$
14.995

$
14.929

$
13.383

$
10.886

Number of Accumulation Units outstanding at end of period (in thousands)
1,087

1,224

1,434

1,701

2,028

4,065

4,819

5,541

6,160

6,231

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.654

$
18.308

$
18.402

$
17.795

$
14.662

$
12.861

$
12.940

$
11.722

$
9.636

$
—

Accumulation Unit Value at end of period
$
22.414

$
19.654

$
18.308

$
18.402

$
17.795

$
14.662

$
12.861

$
12.940

$
11.722

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
787

913

1,090

1,365

1,675

2,060

2,599

3,194

3,674

—

American Funds Blue Chip Income and Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.105

$
1.788

$
1.858

$
1.624

$
1.232

$
1.091

$
1.110

$
0.997

$
0.786

$
1.248

Accumulation Unit Value at end of period
$
2.442

$
2.105

$
1.788

$
1.858

$
1.624

$
1.232

$
1.091

$
1.110

$
0.997

$
0.786

Number of Accumulation Units outstanding at end of period (in thousands)
7,974

9,123

10,846

13,061

16,609

28,957

34,065

38,158

40,113

40,909

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.820

$
1.563

$
1.641

$
1.450

$
1.111

$
0.994

$
1.022

$
0.928

$
0.739

$
—

Accumulation Unit Value at end of period
$
2.090

$
1.820

$
1.563

$
1.641

$
1.450

$
1.111

$
0.994

$
1.022

$
0.928

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
4,771

6,392

7,717

9,680

13,044

19,239

23,784

30,291

35,091

—

American Funds Bond Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.669

$
17.310

$
17.410

$
16.679

$
17.192

$
16.455

$
15.641

$
14.819

$
13.273

$
14.766

Accumulation Unit Value at end of period
$
18.162

$
17.669

$
17.310

$
17.410

$
16.679

$
17.192

$
16.455

$
15.641

$
14.819

$
13.273

Number of Accumulation Units outstanding at end of period (in thousands)
4,849

5,012

5,524

6,470

7,758

6,038

6,625

7,805

7,909

6,226

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.476

$
14.332

$
14.567

$
14.102

$
14.689

$
14.207

$
13.647

$
13.067

$
11.826

$
—

Accumulation Unit Value at end of period
$
14.724

$
14.476

$
14.332

$
14.567

$
14.102

$
14.689

$
14.207

$
13.647

$
13.067

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
493

626

718

905

1,125

1,618

1,926

2,610

3,027

—

American Funds Global Bond Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.233

$
12.993

$
13.659

$
13.587

$
14.066

$
13.358

$
12.887

$
12.351

$
11.356

$
11.067

Accumulation Unit Value at end of period
$
14.020

$
13.233

$
12.993

$
13.659

$
13.587

$
14.066

$
13.358

$
12.887

$
12.351

$
11.356

Number of Accumulation Units outstanding at end of period (in thousands)
516

543

607

717

826

1,481

1,781

1,939

1,910

1,828

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.884

$
11.791

$
12.527

$
12.592

$
13.173

$
12.643

$
12.326

$
11.938

$
11.092

$
—

Accumulation Unit Value at end of period
$
12.459

$
11.884

$
11.791

$
12.527

$
12.592

$
13.173

$
12.643

$
12.326

$
11.938

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
163

183

206

285

379

511

662

695

806

—



APP II-39
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Global Growth and Income Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.983

$
15.016

$
15.350

$
14.655

$
12.062

$
10.348

$
10.969

$
9.896

$
7.143

$
12.246

Accumulation Unit Value at end of period
$
19.978

$
15.983

$
15.016

$
15.350

$
14.655

$
12.062

$
10.348

$
10.969

$
9.896

$
7.143

Number of Accumulation Units outstanding at end of period (in thousands)
1,351

1,552

1,749

2,032

2,528

6,100

7,683

8,805

9,640

9,970

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.278

$
13.556

$
14.004

$
13.511

$
11.238

$
9.743

$
10.436

$
9.515

$
6.941

$
—

Accumulation Unit Value at end of period
$
17.661

$
14.278

$
13.556

$
14.004

$
13.511

$
11.238

$
9.743

$
10.436

$
9.515

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
240

286

332

357

486

650

877

1,049

1,269

—

American Funds Global Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.031

$
26.092

$
24.607

$
24.256

$
18.938

$
15.583

$
17.249

$
15.568

$
11.033

$
18.061

Accumulation Unit Value at end of period
$
33.934

$
26.031

$
26.092

$
24.607

$
24.256

$
18.938

$
15.583

$
17.249

$
15.568

$
11.033

Number of Accumulation Units outstanding at end of period (in thousands)
378

448

488

567

671

1,277

1,567

1,818

1,997

2,115

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.707

$
17.935

$
17.094

$
17.028

$
13.434

$
11.171

$
12.496

$
11.397

$
8.163

$
—

Accumulation Unit Value at end of period
$
22.842

$
17.707

$
17.935

$
17.094

$
17.028

$
13.434

$
11.171

$
12.496

$
11.397

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
217

289

348

442

560

774

1,021

1,308

1,579

—

American Funds Global Small Capitalization Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.421

$
26.099

$
26.252

$
25.926

$
20.383

$
17.395

$
21.698

$
17.876

$
11.177

$
24.254

Accumulation Unit Value at end of period
$
32.982

$
26.421

$
26.099

$
26.252

$
25.926

$
20.383

$
17.395

$
21.698

$
17.876

$
11.177

Number of Accumulation Units outstanding at end of period (in thousands)
344

411

444

504

586

847

1,039

1,106

1,240

1,211

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.001

$
17.969

$
18.265

$
18.229

$
14.483

$
12.490

$
15.744

$
13.108

$
8.282

$
—

Accumulation Unit Value at end of period
$
22.236

$
18.001

$
17.969

$
18.265

$
18.229

$
14.483

$
12.490

$
15.744

$
13.108

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
126

151

193

256

330

489

604

808

990

—

American Funds Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.912

$
24.790

$
23.397

$
21.746

$
16.857

$
14.421

$
15.194

$
12.912

$
9.341

$
16.813

Accumulation Unit Value at end of period
$
34.233

$
26.912

$
24.790

$
23.397

$
21.746

$
16.857

$
14.421

$
15.194

$
12.912

$
9.341

Number of Accumulation Units outstanding at end of period (in thousands)
1,879

2,194

2,563

3,065

3,881

5,524

6,795

7,910

8,678

8,509

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.680

$
14.596

$
13.921

$
13.075

$
10.243

$
8.855

$
9.428

$
8.096

$
5.919

$
—

Accumulation Unit Value at end of period
$
19.737

$
15.680

$
14.596

$
13.921

$
13.075

$
10.243

$
8.855

$
9.428

$
8.096

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,515

1,894

2,321

2,902

3,765

5,407

6,895

8,894

10,940

—



APP II-40
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Growth-Income Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.766

$
24.205

$
24.062

$
21.935

$
16.571

$
14.225

$
14.614

$
13.227

$
10.165

$
16.494

Accumulation Unit Value at end of period
$
32.479

$
26.766

$
24.205

$
24.062

$
21.935

$
16.571

$
14.225

$
14.614

$
13.227

$
10.165

Number of Accumulation Units outstanding at end of period (in thousands)
2,409

2,786

3,261

3,984

5,034

7,871

9,553

11,058

12,104

11,947

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.944

$
19.140

$
19.228

$
17.713

$
13.522

$
11.731

$
12.179

$
11.139

$
8.651

$
—

Accumulation Unit Value at end of period
$
25.149

$
20.944

$
19.140

$
19.228

$
17.713

$
13.522

$
11.731

$
12.179

$
11.139

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,174

1,456

1,756

2,194

2,919

3,994

5,123

6,496

7,901

—

American Funds International Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.277

$
17.805

$
18.808

$
19.485

$
16.156

$
13.819

$
16.200

$
15.236

$
10.740

$
18.715

Accumulation Unit Value at end of period
$
23.948

$
18.277

$
17.805

$
18.808

$
19.485

$
16.156

$
13.819

$
16.200

$
15.236

$
10.740

Number of Accumulation Units outstanding at end of period (in thousands)
1,324

1,628

1,847

2,080

2,430

2,734

3,220

3,383

3,361

2,957

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.749

$
12.551

$
13.398

$
14.027

$
11.753

$
10.159

$
12.035

$
11.438

$
8.148

$
—

Accumulation Unit Value at end of period
$
16.531

$
12.749

$
12.551

$
13.398

$
14.027

$
11.753

$
10.159

$
12.035

$
11.438

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
427

519

643

805

926

1,410

1,744

2,242

2,641

—

American Funds New World Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.807

$
29.518

$
30.737

$
33.648

$
30.468

$
26.080

$
30.566

$
26.153

$
17.625

$
30.846

Accumulation Unit Value at end of period
$
39.541

$
30.807

$
29.518

$
30.737

$
33.648

$
30.468

$
26.080

$
30.566

$
26.153

$
17.625

Number of Accumulation Units outstanding at end of period (in thousands)
158

176

189

218

268

487

625

725

739

773

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.837

$
23.081

$
24.288

$
26.868

$
24.586

$
21.268

$
25.189

$
21.779

$
14.832

$
—

Accumulation Unit Value at end of period
$
30.276

$
23.837

$
23.081

$
24.288

$
26.868

$
24.586

$
21.268

$
25.189

$
21.779

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
96

125

152

200

246

376

463

589

659

—

Fidelity VIP Dynamic Capital Appreciation Portfolio (a)
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
22.213

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
5

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
33.207

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—



APP II-41
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Flex Cap Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.718

$
18.400

$
17.781

$
16.901

$
12.398

$
11.444

$
12.124

$
10.523

$
7.982

$
12.444

Accumulation Unit Value at end of period
$
22.301

$
17.718

$
18.400

$
17.781

$
16.901

$
12.398

$
11.444

$
12.124

$
10.523

$
7.982

Number of Accumulation Units outstanding at end of period (in thousands)
59

76

88

96

107

180

229

269

289

243

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.647

$
16.421

$
16.036

$
15.403

$
11.419

$
10.651

$
11.403

$
10.002

$
7.666

$
—

Accumulation Unit Value at end of period
$
19.489

$
15.647

$
16.421

$
16.036

$
15.403

$
11.419

$
10.651

$
11.403

$
10.002

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
39

48

51

60

75

94

100

94

118

—

Franklin Income VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.783

$
21.037

$
22.826

$
22.005

$
19.478

$
17.438

$
17.177

$
15.375

$
11.436

$
16.396

Accumulation Unit Value at end of period
$
25.863

$
23.783

$
21.037

$
22.826

$
22.005

$
19.478

$
17.438

$
17.177

$
15.375

$
11.436

Number of Accumulation Units outstanding at end of period (in thousands)
1,244

1,460

1,742

2,049

2,559

5,484

6,816

7,915

8,611

8,789

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.669

$
18.474

$
20.258

$
19.736

$
17.653

$
15.971

$
15.898

$
14.381

$
10.809

$
—

Accumulation Unit Value at end of period
$
22.242

$
20.669

$
18.474

$
20.258

$
19.736

$
17.653

$
15.971

$
15.898

$
14.381

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
605

768

947

1,155

1,424

1,948

2,524

3,292

3,947

—

Franklin Large Cap Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.705

$
19.209

$
18.341

$
16.448

$
12.896

$
11.574

$
11.851

$
10.711

$
8.327

$
12.827

Accumulation Unit Value at end of period
$
23.759

$
18.705

$
19.209

$
18.341

$
16.448

$
12.896

$
11.574

$
11.851

$
10.711

$
8.327

Number of Accumulation Units outstanding at end of period (in thousands)
48

55

56

73

91

136

160

188

189

198

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.255

$
16.869

$
16.277

$
14.751

$
11.687

$
10.600

$
10.969

$
10.018

$
7.870

$
—

Accumulation Unit Value at end of period
$
20.432

$
16.255

$
16.869

$
16.277

$
14.751

$
11.687

$
10.600

$
10.969

$
10.018

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
82

97

111

146

187

232

293

364

469

—

Franklin Mutual Global Discovery VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
33.075

$
29.736

$
31.126

$
29.697

$
23.469

$
20.880

$
21.701

$
19.548

$
15.988

$
22.537

Accumulation Unit Value at end of period
$
35.614

$
33.075

$
29.736

$
31.126

$
29.697

$
23.469

$
20.880

$
21.701

$
19.548

$
15.988

Number of Accumulation Units outstanding at end of period (in thousands)
627

718

838

969

1,191

2,402

2,971

3,343

3,448

3,530

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.916

$
26.272

$
27.790

$
26.794

$
21.398

$
19.239

$
20.206

$
18.394

$
15.202

$
—

Accumulation Unit Value at end of period
$
30.811

$
28.916

$
26.272

$
27.790

$
26.794

$
21.398

$
19.239

$
20.206

$
18.394

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
177

203

244

290

354

429

548

667

766

—



APP II-42
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Mutual Shares VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.234

$
24.535

$
26.029

$
24.506

$
19.270

$
17.011

$
17.337

$
15.725

$
12.582

$
20.176

Accumulation Unit Value at end of period
$
30.332

$
28.234

$
24.535

$
26.029

$
24.506

$
19.270

$
17.011

$
17.337

$
15.725

$
12.582

Number of Accumulation Units outstanding at end of period (in thousands)
1,348

1,526

1,799

2,075

2,580

4,367

5,476

6,269

6,704

6,425

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.072

$
18.505

$
19.839

$
18.875

$
14.999

$
13.380

$
13.781

$
12.631

$
10.213

$
—

Accumulation Unit Value at end of period
$
22.401

$
21.072

$
18.505

$
19.839

$
18.875

$
14.999

$
13.380

$
13.781

$
12.631

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
606

732

843

995

1,197

1,649

2,091

2,612

3,196

—

Franklin Rising Dividends VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.222

$
23.659

$
24.764

$
22.972

$
17.864

$
16.092

$
15.311

$
12.799

$
11.000

$
15.218

Accumulation Unit Value at end of period
$
32.540

$
27.222

$
23.659

$
24.764

$
22.972

$
17.864

$
16.092

$
15.311

$
12.799

$
11.000

Number of Accumulation Units outstanding at end of period (in thousands)
742

880

1,045

1,181

1,470

1,636

1,996

2,143

2,268

2,483

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.799

$
20.902

$
22.110

$
20.726

$
16.288

$
14.826

$
14.256

$
12.043

$
10.460

$
—

Accumulation Unit Value at end of period
$
28.152

$
23.799

$
20.902

$
22.110

$
20.726

$
16.288

$
14.826

$
14.256

$
12.043

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
278

350

394

475

623

815

1,038

1,176

1,291

—

Franklin Small Cap Value VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.923

$
13.884

$
15.120

$
15.162

$
11.224

$
9.562

$
10.020

$
7.881

$
6.154

$
9.266

Accumulation Unit Value at end of period
$
19.664

$
17.923

$
13.884

$
15.120

$
15.162

$
11.224

$
9.562

$
10.020

$
7.881

$
6.154

Number of Accumulation Units outstanding at end of period (in thousands)
153

168

209

227

274

204

264

292

210

78

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.258

$
12.728

$
14.007

$
14.194

$
10.619

$
9.141

$
9.681

$
7.695

$
6.072

$
—

Accumulation Unit Value at end of period
$
17.651

$
16.258

$
12.728

$
14.007

$
14.194

$
10.619

$
9.141

$
9.681

$
7.695

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
41

50

52

64

89

103

120

151

115

—

Franklin Small-Mid Cap Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.338

$
21.627

$
22.407

$
21.027

$
15.350

$
13.965

$
14.799

$
11.695

$
8.215

$
14.408

Accumulation Unit Value at end of period
$
26.888

$
22.338

$
21.627

$
22.407

$
21.027

$
15.350

$
13.965

$
14.799

$
11.695

$
8.215

Number of Accumulation Units outstanding at end of period (in thousands)
139

165

175

202

249

204

232

318

317

262

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.743

$
11.489

$
12.029

$
11.407

$
8.415

$
7.737

$
8.286

$
6.617

$
4.697

$
—

Accumulation Unit Value at end of period
$
13.987

$
11.743

$
11.489

$
12.029

$
11.407

$
8.415

$
7.737

$
8.286

$
6.617

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
255

300

368

451

563

894

1,137

1,408

1,694

—



APP II-43
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Strategic Income VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.145

$
23.426

$
24.513

$
24.209

$
23.585

$
21.027

$
20.634

$
18.712

$
14.964

$
16.963

Accumulation Unit Value at end of period
$
26.113

$
25.145

$
23.426

$
24.513

$
24.209

$
23.585

$
21.027

$
20.634

$
18.712

$
14.964

Number of Accumulation Units outstanding at end of period (in thousands)
248

271

310

360

421

1,142

1,299

1,445

1,504

1,588

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.383

$
19.190

$
20.293

$
20.252

$
19.938

$
17.964

$
17.814

$
16.325

$
13.193

$
—

Accumulation Unit Value at end of period
$
20.946

$
20.383

$
19.190

$
20.293

$
20.252

$
19.938

$
17.964

$
17.814

$
16.325

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
273

338

409

519

676

923

1,051

1,267

1,523

—

Hartford Ultrashort Bond HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.136

$
1.134

$
1.142

$
1.151

$
1.161

$
1.171

$
1.181

$
1.191

$
1.200

$
1.185

Accumulation Unit Value at end of period
$
1.137

$
1.136

$
1.134

$
1.142

$
1.151

$
1.161

$
1.171

$
1.181

$
1.191

$
1.200

Number of Accumulation Units outstanding at end of period (in thousands)
2,309

2,566

2,411

2,835

3,606

9,338

9,835

6,355

8,760

15,031

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
0.935

$
0.944

$
0.960

$
0.978

$
0.997

$
1.016

$
1.035

$
1.055

$
1.075

$
—

Accumulation Unit Value at end of period
$
0.926

$
0.935

$
0.944

$
0.960

$
0.978

$
0.997

$
1.016

$
1.035

$
1.055

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
3,915

4,534

5,369

5,894

9,836

12,297

17,572

16,268

27,103

—

Invesco V.I. American Franchise Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.471

$
16.243

$
15.600

$
14.509

$
10.442

$
9.259

$
10.734

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.796

$
16.471

$
16.243

$
15.600

$
14.509

$
10.442

$
9.259

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
39

40

42

43

52

90

39

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.499

$
15.446

$
14.992

$
14.090

$
10.247

$
9.183

$
10.720

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.365

$
15.499

$
15.446

$
14.992

$
14.090

$
10.247

$
9.183

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
66

74

87

126

159

191

109

—

—

—

Invesco V.I. Core Equity Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.297

$
17.650

$
18.891

$
17.617

$
13.746

$
12.174

$
12.285

$
11.310

$
8.890

$
12.835

Accumulation Unit Value at end of period
$
21.654

$
19.297

$
17.650

$
18.891

$
17.617

$
13.746

$
12.174

$
12.285

$
11.310

$
8.890

Number of Accumulation Units outstanding at end of period (in thousands)
313

346

402

438

550

52

65

52

51

41

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.041

$
15.752

$
17.037

$
16.056

$
12.660

$
11.330

$
11.555

$
10.749

$
8.539

$
—

Accumulation Unit Value at end of period
$
18.924

$
17.041

$
15.752

$
17.037

$
16.056

$
12.660

$
11.330

$
11.555

$
10.749

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
116

135

167

223

286

389

495

626

809

—



APP II-44
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. Government Money Market Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.713

$
9.787

$
9.869

$
9.952

$
9.990

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.685

$
9.713

$
9.787

$
9.869

$
9.952

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
299

348

273

388

318

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.354

$
9.524

$
9.706

$
9.891

$
9.977

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.229

$
9.354

$
9.524

$
9.706

$
9.891

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
191

242

223

161

221

—

—

—

—

—

Invesco V.I. Government Securities Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.487

$
1.481

$
1.489

$
1.442

$
1.493

$
1.470

$
1.374

$
1.314

$
1.326

$
1.191

Accumulation Unit Value at end of period
$
1.503

$
1.487

$
1.481

$
1.489

$
1.442

$
1.493

$
1.470

$
1.374

$
1.314

$
1.326

Number of Accumulation Units outstanding at end of period (in thousands)
2,583

2,543

2,466

2,924

3,748

9,066

9,345

11,240

12,780

16,381

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.287

$
1.296

$
1.317

$
1.289

$
1.349

$
1.341

$
1.267

$
1.225

$
1.249

$
—

Accumulation Unit Value at end of period
$
1.288

$
1.287

$
1.296

$
1.317

$
1.289

$
1.349

$
1.341

$
1.267

$
1.225

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
6,042

6,588

7,197

7,453

9,609

12,480

13,631

16,999

21,546

—

Invesco V.I. International Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.545

$
2.578

$
2.662

$
2.676

$
2.268

$
1.980

$
2.141

$
1.913

$
1.427

$
2.413

Accumulation Unit Value at end of period
$
3.104

$
2.545

$
2.578

$
2.662

$
2.676

$
2.268

$
1.980

$
2.141

$
1.913

$
1.427

Number of Accumulation Units outstanding at end of period (in thousands)
2,745

3,323

3,495

3,878

4,573

1,120

1,411

1,634

1,711

1,798

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.203

$
2.256

$
2.354

$
2.392

$
2.048

$
1.807

$
1.974

$
1.783

$
1.344

$
—

Accumulation Unit Value at end of period
$
2.659

$
2.203

$
2.256

$
2.354

$
2.392

$
2.048

$
1.807

$
1.974

$
1.783

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
292

368

471

538

868

1,139

1,570

1,843

2,226

—

Invesco V.I. Mid Cap Core Equity Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.729

$
2.426

$
2.549

$
2.462

$
1.928

$
1.752

$
1.887

$
1.668

$
1.292

$
1.823

Accumulation Unit Value at end of period
$
3.109

$
2.729

$
2.426

$
2.549

$
2.462

$
1.928

$
1.752

$
1.887

$
1.668

$
1.292

Number of Accumulation Units outstanding at end of period (in thousands)
2,052

2,348

2,724

2,997

3,565

5,463

6,725

7,386

8,115

8,072

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.363

$
2.123

$
2.254

$
2.200

$
1.741

$
1.599

$
1.741

$
1.555

$
1.217

$
—

Accumulation Unit Value at end of period
$
2.664

$
2.363

$
2.123

$
2.254

$
2.200

$
1.741

$
1.599

$
1.741

$
1.555

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,099

1,168

1,376

1,707

2,157

3,404

4,201

5,499

6,784

—



APP II-45
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. Mid Cap Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.479

$
14.493

$
14.443

$
13.482

$
9.924

$
10.029

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
17.586

$
14.479

$
14.493

$
14.443

$
13.482

$
9.924

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
14

15

21

23

33

7

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.763

$
13.921

$
14.019

$
13.225

$
9.837

$
10.011

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
16.541

$
13.763

$
13.921

$
14.019

$
13.225

$
9.837

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
10

11

37

21

24

25

—

—

—

—

Invesco V.I. Small Cap Equity Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.319

$
22.786

$
24.323

$
23.964

$
17.582

$
15.569

$
15.816

$
12.410

$
10.319

$
15.151

Accumulation Unit Value at end of period
$
28.633

$
25.319

$
22.786

$
24.323

$
23.964

$
17.582

$
15.569

$
15.816

$
12.410

$
10.319

Number of Accumulation Units outstanding at end of period (in thousands)
117

135

154

166

196

60

73

61

37

41

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.192

$
20.183

$
21.771

$
21.677

$
16.071

$
14.381

$
14.764

$
11.707

$
9.837

$
—

Accumulation Unit Value at end of period
$
24.835

$
22.192

$
20.183

$
21.771

$
21.677

$
16.071

$
14.381

$
14.764

$
11.707

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
39

45

49

62

107

138

189

229

289

—

Invesco V.I. Value Opportunities Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.886

$
1.607

$
1.809

$
1.711

$
1.290

$
1.106

$
1.150

$
1.081

$
0.736

$
1.540

Accumulation Unit Value at end of period
$
2.196

$
1.886

$
1.607

$
1.809

$
1.711

$
1.290

$
1.106

$
1.150

$
1.081

$
0.736

Number of Accumulation Units outstanding at end of period (in thousands)
313

362

398

440

508

1,018

1,278

1,511

1,860

1,788

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.633

$
1.406

$
1.600

$
1.529

$
1.165

$
1.009

$
1.061

$
1.007

$
0.693

$
—

Accumulation Unit Value at end of period
$
1.882

$
1.633

$
1.406

$
1.600

$
1.529

$
1.165

$
1.009

$
1.061

$
1.007

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
905

1,045

1,159

1,255

1,702

2,149

2,731

3,923

4,447

—

MFS Global Equity Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.065

$
25.428

$
26.013

$
25.257

$
19.929

$
16.296

$
17.178

$
15.419

$
11.782

$
17.942

Accumulation Unit Value at end of period
$
33.295

$
27.065

$
25.428

$
26.013

$
25.257

$
19.929

$
16.296

$
17.178

$
15.419

$
11.782

Number of Accumulation Units outstanding at end of period (in thousands)
11

13

15

15

16

37

28

36

36

41

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.283

$
19.257

$
19.908

$
19.533

$
15.576

$
12.870

$
13.710

$
12.436

$
9.603

$
—

Accumulation Unit Value at end of period
$
24.692

$
20.283

$
19.257

$
19.908

$
19.533

$
15.576

$
12.870

$
13.710

$
12.436

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
8

11

13

18

27

47

62

80

99

—



APP II-46
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Growth Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.621

$
18.332

$
17.189

$
15.913

$
11.727

$
10.075

$
10.194

$
8.914

$
6.530

$
10.523

Accumulation Unit Value at end of period
$
24.262

$
18.621

$
18.332

$
17.189

$
15.913

$
11.727

$
10.075

$
10.194

$
8.914

$
6.530

Number of Accumulation Units outstanding at end of period (in thousands)
624

780

867

1,045

1,319

128

96

60

53

32

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.613

$
10.559

$
10.005

$
9.360

$
6.970

$
6.052

$
6.188

$
5.468

$
4.048

$
—

Accumulation Unit Value at end of period
$
13.684

$
10.613

$
10.559

$
10.005

$
9.360

$
6.970

$
6.052

$
6.188

$
5.468

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
69

92

108

130

192

238

293

285

309

—

MFS High Yield Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.502

$
10.191

$
10.731

$
10.527

$
10.153

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
12.167

$
11.502

$
10.191

$
10.731

$
10.527

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
206

219

205

238

266

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.085

$
9.926

$
10.562

$
10.470

$
10.138

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.604

$
11.085

$
9.926

$
10.562

$
10.470

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
163

237

283

318

466

—

—

—

—

—

MFS Investors Trust Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.963

$
18.541

$
18.659

$
16.952

$
12.947

$
10.956

$
11.296

$
10.254

$
8.150

$
12.282

Accumulation Unit Value at end of period
$
24.415

$
19.963

$
18.541

$
18.659

$
16.952

$
12.947

$
10.956

$
11.296

$
10.254

$
8.150

Number of Accumulation Units outstanding at end of period (in thousands)
49

51

46

56

73

84

73

59

57

63

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.171

$
14.239

$
14.481

$
13.295

$
10.261

$
8.775

$
9.142

$
8.387

$
6.736

$
—

Accumulation Unit Value at end of period
$
18.360

$
15.171

$
14.239

$
14.481

$
13.295

$
10.261

$
8.775

$
9.142

$
8.387

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
221

269

338

429

562

763

993

1,241

1,596

—

MFS Massachusetts Investors Growth Stock Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.735

$
10.206

$
10.402

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.670

$
10.735

$
10.206

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
32

31

20

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.521

$
10.109

$
10.385

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.257

$
10.521

$
10.109

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
102

112

130

—

—

—

—

—

—

—



APP II-47
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Mid Cap Growth Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.007

$
9.620

$
9.274

$
8.592

$
6.292

$
5.446

$
5.844

$
4.546

$
3.234

$
6.732

Accumulation Unit Value at end of period
$
12.601

$
10.007

$
9.620

$
9.274

$
8.592

$
6.292

$
5.446

$
5.844

$
4.546

$
3.234

Number of Accumulation Units outstanding at end of period (in thousands)
60

65

83

96

113

125

184

216

146

88

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.310

$
9.044

$
8.812

$
8.249

$
6.105

$
5.340

$
5.790

$
4.552

$
3.272

$
—

Accumulation Unit Value at end of period
$
11.601

$
9.310

$
9.044

$
8.812

$
8.249

$
6.105

$
5.340

$
5.790

$
4.552

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
119

142

167

206

265

359

458

650

767

—

MFS New Discovery Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
29.849

$
27.606

$
28.376

$
30.858

$
21.991

$
18.295

$
20.563

$
15.211

$
9.401

$
15.628

Accumulation Unit Value at end of period
$
37.486

$
29.849

$
27.606

$
28.376

$
30.858

$
21.991

$
18.295

$
20.563

$
15.211

$
9.401

Number of Accumulation Units outstanding at end of period (in thousands)
19

20

31

30

37

58

62

59

50

29

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.743

$
14.713

$
15.284

$
16.796

$
12.096

$
10.169

$
11.550

$
8.634

$
5.393

$
—

Accumulation Unit Value at end of period
$
19.564

$
15.743

$
14.713

$
15.284

$
16.796

$
12.096

$
10.169

$
11.550

$
8.634

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
132

162

196

253

336

492

584

733

995

—

MFS Research International Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.460

$
9.609

$
10.522

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
12.034

$
9.460

$
9.609

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
23

30

30

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.272

$
9.516

$
10.506

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.671

$
9.272

$
9.516

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
34

56

63

—

—

—

—

—

—

—

MFS Research Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.906

$
20.318

$
20.328

$
18.603

$
14.183

$
12.197

$
12.357

$
10.753

$
8.308

$
13.109

Accumulation Unit Value at end of period
$
26.796

$
21.906

$
20.318

$
20.328

$
18.603

$
14.183

$
12.197

$
12.357

$
10.753

$
8.308

Number of Accumulation Units outstanding at end of period (in thousands)
147

177

198

222

280

884

1,127

1,283

1,417

1,394

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.345

$
18.132

$
18.333

$
16.955

$
13.062

$
11.352

$
11.622

$
10.220

$
7.979

$
—

Accumulation Unit Value at end of period
$
23.417

$
19.345

$
18.132

$
18.333

$
16.955

$
13.062

$
11.352

$
11.622

$
10.220

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
9

13

20

20

32

30

29

31

43

—




APP II-48
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Total Return Bond Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.135

$
14.644

$
14.814

$
14.115

$
14.384

$
13.514

$
12.768

$
11.982

$
10.403

$
10.746

Accumulation Unit Value at end of period
$
15.675

$
15.135

$
14.644

$
14.814

$
14.115

$
14.384

$
13.514

$
12.768

$
11.982

$
10.403

Number of Accumulation Units outstanding at end of period (in thousands)
3,712

3,834

4,189

4,813

5,772

694

592

360

273

178

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.369

$
13.072

$
13.364

$
12.868

$
13.251

$
12.581

$
12.012

$
11.392

$
9.995

$
—

Accumulation Unit Value at end of period
$
13.702

$
13.369

$
13.072

$
13.364

$
12.868

$
13.251

$
12.581

$
12.012

$
11.392

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
122

152

174

232

274

438

436

505

565

—

MFS Total Return Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.083

$
22.264

$
22.538

$
20.950

$
17.748

$
16.089

$
15.944

$
14.627

$
12.499

$
16.188

Accumulation Unit Value at end of period
$
26.817

$
24.083

$
22.264

$
22.538

$
20.950

$
17.748

$
16.089

$
15.944

$
14.627

$
12.499

Number of Accumulation Units outstanding at end of period (in thousands)
340

385

484

576

726

2,106

2,645

3,094

3,381

3,629

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.368

$
17.159

$
17.553

$
16.489

$
14.116

$
12.931

$
12.950

$
12.006

$
10.367

$
—

Accumulation Unit Value at end of period
$
20.238

$
18.368

$
17.159

$
17.553

$
16.489

$
14.116

$
12.931

$
12.950

$
12.006

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
588

719

846

1,051

1,351

1,718

2,186

2,779

3,437

—

MFS Value Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
31.754

$
28.070

$
28.520

$
26.028

$
19.318

$
16.758

$
16.952

$
15.329

$
12.598

$
18.846

Accumulation Unit Value at end of period
$
37.043

$
31.754

$
28.070

$
28.520

$
26.028

$
19.318

$
16.758

$
16.952

$
15.329

$
12.598

Number of Accumulation Units outstanding at end of period (in thousands)
355

414

487

570

719

724

894

979

1,015

984

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.762

$
24.800

$
25.463

$
23.484

$
17.613

$
15.440

$
15.784

$
14.423

$
11.979

$
—

Accumulation Unit Value at end of period
$
32.047

$
27.762

$
24.800

$
25.463

$
23.484

$
17.613

$
15.440

$
15.784

$
14.423

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
85

101

104

125

173

254

342

414

511

—

Putnam VT Investors Fund (a)
 
 
 
 
 
 
 
 
 
 
With MAV/EPB Death Benefit and The Hartford's Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
30.187

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With The Hartford's Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
30.187

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—



APP II-49
 
 
 

 
As of December 31,
Sub-Account
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Templeton Developing Markets VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.761

$
19.487

$
24.391

$
26.764

$
27.193

$
24.183

$
28.923

$
24.755

$
14.405

$
30.662

Accumulation Unit Value at end of period
$
31.742

$
22.761

$
19.487

$
24.391

$
26.764

$
27.193

$
24.183

$
28.923

$
24.755

$
14.405

Number of Accumulation Units outstanding at end of period (in thousands)
29

34

31

32

40

95

121

128

133

130

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.563

$
17.791

$
22.504

$
24.954

$
25.621

$
23.026

$
27.830

$
24.071

$
14.154

$
—

Accumulation Unit Value at end of period
$
28.378

$
20.563

$
17.791

$
22.504

$
24.954

$
25.621

$
23.026

$
27.830

$
24.071

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
65

74

86

100

121

181

218

275

320

—

Templeton Foreign VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.909

$
14.971

$
16.147

$
18.324

$
15.029

$
12.819

$
14.467

$
13.459

$
9.905

$
16.755

Accumulation Unit Value at end of period
$
18.407

$
15.909

$
14.971

$
16.147

$
18.324

$
15.029

$
12.819

$
14.467

$
13.459

$
9.905

Number of Accumulation Units outstanding at end of period (in thousands)
580

667

731

794

857

434

507

568

576

609

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.650

$
12.030

$
13.112

$
15.037

$
12.463

$
10.743

$
12.252

$
11.519

$
8.566

$
—

Accumulation Unit Value at end of period
$
14.484

$
12.650

$
12.030

$
13.112

$
15.037

$
12.463

$
10.743

$
12.252

$
11.519

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
233

271

319

407

483

666

832

1,036

1,383

—

Templeton Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.301

$
17.757

$
19.151

$
19.874

$
15.322

$
12.764

$
13.838

$
12.995

$
9.997

$
17.480

Accumulation Unit Value at end of period
$
22.678

$
19.301

$
17.757

$
19.151

$
19.874

$
15.322

$
12.764

$
13.838

$
12.995

$
9.997

Number of Accumulation Units outstanding at end of period (in thousands)
519

611

710

826

994

2,062

2,561

2,997

3,319

3,523

With MAV/EPB Death Benefit and The Hartford's Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.438

$
14.354

$
15.644

$
16.406

$
12.781

$
10.760

$
11.789

$
11.187

$
8.697

$
—

Accumulation Unit Value at end of period
$
17.950

$
15.438

$
14.354

$
15.644

$
16.406

$
12.781

$
10.760

$
11.789

$
11.187

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
255

316

390

476

584

859

1,127

1,447

1,820

—

(a) Inception date April 15, 2017.



APP A-1
 
 
 

Appendix A — Product Comparison Information
In addition to the variable annuity Contract described in this prospectus, we offered other deferred individual variable annuities, each having different sales charges (if any), fees and investment options. The primary differences between the “Director M” and “Leaders” suites of variable annuities we currently offer generally relate to the investment options offered and mortality expense risk charges. We offered three contract variations that have a contingent deferred sales charge (these forms of contract are called “Outlook”, “Plus” and our base contract (which does not have a separate marketing name, but is sometimes referred to in this prospectus as the “Core” version)), one contract version has a front end sales charge (called “Edge”) and one contract version has no sales charge (called “Access”). We have not included information regarding our Edge Contract because it is offered through a very limited number of Financial Intermediaries.
Not all forms of contracts were offered through all Financial Intermediaries. This Appendix does not constitute and may not be used for the purpose of making any offer or solicitation for anyone of any form of variable annuity other than as specifically provided in this Prospectus. Presented below are some, but certainly not all, of the differentiating features between our individual deferred variable annuities. The form of Contract you select will be identified on your application and the contract issued to you. Consider the investment objectives, risks, charges and expenses of an investment carefully before investing. Both the variable annuity product and underlying Fund prospectuses contain other information about variable annuities and investment options. Your investment professional can provide you with prospectuses or you can contact us to receive one. This and any of the other variable annuities referenced in this Appendix are underwritten and distributed by Talcott Resolution Distribution Company, Inc. Member SIPC. Please read the prospectus carefully before investing.
I. Key Differences
 
Minimum Initial Premium
 
 
 
 
 
 
 
 
 
 
 
 
 
Contract
Qualified Contract
Non-Qualified Contract
 
 
 
 
Sales Charge
 
 
 
Mortality &
Expense Risk
Charge (1)
Payment Enhancement
Maximum
Upfront
Commission
Access
$10,000
$2,000
 
 
 
 
None
 
 
 
1.55%
No
2%
Core
$1,000
$1,000
Year
1
2
3
4
5
 
 
 
 
 
 
 
 
 
 
CDSC(2)
7%
7%
7%
6%
5%
4%
3%
0%
 
1.15%
No
7%
Outlook
$10,000
$2,000
Year
1
2
3
4
5+
 
 
 
 
 
 
 
 
 
 
CDSC(2)
7%
6%
5%
4%
0%
 
 
 
 
1.50%
No
5.75%
Plus
$10,000
$2,000
Year
1
2
3
4
5
6
7
8
9+
 
 
 
 
 
 
CDSC(2)
8%
8%
8%
8%
7%
6%
5%
4%
0%
1.50%
Yes(3)
6.5%
(1)
Excluded fees include administrative charges (up to 0.20%), annual maintenance fees (applies to contracts with anniversary/surrender contract values less than $50,000), premium taxes (0 - 3.5%) and optional benefit fees.
(2)
Each Premium Payment has its own Contingent Deferred Sales Charge (CDSC) schedule. Only amounts invested for less than the requisite holding period are subject to a CDSC. When a CDSC is applicable, only Surrenders in excess of the Annual Withdrawal Amount (AWA) will be subject to a CDSC. After the AWA deduction, surrenders will then be taken first: from earnings, second: from Premium Payments not subject to a CDSC, third: from 10% of Premium Payments still subject to a CDSC, fourth: from Premium Payments subject to a CDSC on a first-in-first-out basis, and fifth: from Payment Enhancements for Plus contracts only. A CDSC will not exceed your total Premium Payments.
The following Surrenders are NOT subject to a CDSC:
•
Annual Withdrawal Amount - Each Premium Payment has its own schedule of Contingent Deferred Sales charges; however, in any contract year you may able to take Partial Surrenders up to a certain percentage of your total Premium Payments without being subject to a Contingent Deferred Sales Charge. Please refer to your Contract for your specific Annual Withdrawal Percentage amounts and your Contingent Deferred Sales Charge schedule.
•
If you are a patient in a certified long-term care facility or other eligible facility - We will waive any CDSC for a partial or full Surrender if you, the joint Contract Owner or the Annuitant, are confined for at least 180 calendar days to a:
•
facility recognized as a general hospital by the proper authority of the state in which it is located or the Joint Commission on the Accreditation of Hospitals;
•
facility certified by Medicare as a hospital or long-term care facility; or
•
nursing home licensed by the state in which it is located and offers the services of a registered nurse 24 hours a day.
For this waiver to apply, you must:
•
have owned the Contract continuously since it was issued,
•
provide written proof of your eligibility satisfactory to us, and


APP A-2
 
 
 

•
request the Surrender within 91 calendar days of the last day that you are an eligible patient in a recognized facility or nursing home.
This waiver is not available if you, the joint Contract Owner or the Annuitant is in a facility or nursing home when you purchase or upgrade the Contract. We will not waive any CDSC applicable to any Premium Payments made while you are in an eligible facility or nursing home. This waiver may not be available in all states.
•
Upon death of the Annuitant or any Contract Owner(s) - No CDSC will be deducted if the Annuitant or any Contract Owner(s) dies.
•
Upon Annuitization - The CDSC is not deducted when you annuitize the Contract. However, we will charge a CDSC if the Contract is Surrendered during the CDSC period under an Annuity Payout Option which allows Surrenders.
•
For Required Minimum Distributions - This allows Annuitants who are age 70½ or older, with a Contract held under an IRA or 403(b) plan, to Surrender an amount equal to the Required Minimum Distribution for the Contract without a CDSC for one year’s required minimum distribution for that Contract Year. All requests for Required Minimum Distributions must be in writing.
•
For substantially equal periodic payments - We will waive the CDSC if you take partial Surrenders under the Automatic Income Program where you receive a scheduled series of substantially equal periodic payments for the greater of five years or to age 59½.
•
Upon cancellation during the Right to Cancel Period - No CDSC will be deducted if you cancel your Contract during the Right to Cancel Period.
(3)
We add an additional sum to your Account Value equal to 3% of the Premium Payment if cumulative Premium Payments are less than $50,000 or 4% of the Premium Payment if cumulative Premium Payments are more than $50,000. If a subsequent Premium Payment increases cumulative Premium Payments to $50,000 or more, we will credit an additional Payment Enhancement to your Account Value equal to 1% of your Premium Payments. Payment Enhancements will be allocated to the same Accounts and in the same proportion as your Premium Payment. The cost of providing Payment Enhancements is included in the higher Mortality and Expense Risk Charges. Payment Enhancements will be recaptured if you:
•
Cancel your Contract during any “Free Look” period.
•
Annuitize your Contract, you will forfeit Payment Enhancements credited in the 24 months prior to the Annuity Commencement Date.
•
Request a full or partial Surrender under the CDSC exemption applicable when you are a patient in a certified long-term care facility or other eligible facility.
II. Investment Options

The following tables describe the investment options available by contract, including the Fund name, share class, fund objectives and the investment adviser and sub-adviser of each Fund. For additional information on each Fund, please refer to the Fund’s Prospectus.

1.
Leaders Edge Series II/IIR
APP A - 3
2.
Leaders Edge Series III
APP A - 6


APP A-3
 
 
 

1.
Leaders Edge Series II/IIR:
Funding Option
Investment Objective Summary
Investment Adviser/Sub-Adviser
Fixed Accumulation Feature*
Preservation of capital
General Account
AIM Variable Insurance Funds
 
 
Invesco V.I. American Franchise Fund - Series I
Seeks capital growth
Invesco Advisers, Inc.
Invesco V.I. Core Equity Fund - Series I
Seeks long-term growth of capital
Invesco Advisers, Inc.
Invesco V.I. Government Securities Fund - Series I
Seeks total return, comprised of current income and capital appreciation
Invesco Advisers, Inc.
Invesco V.I. International Growth Fund - Series I
Seeks long-term growth of capital
Invesco Advisers, Inc.
Invesco V.I. Mid Cap Core Equity Fund - Series I
Seeks long-term growth of capital
Invesco Advisers, Inc.
Invesco V.I. Mid Cap Growth Fund - Series I
Seeks capital growth
Invesco Advisers, Inc.
Invesco V.I. Government Money Market Fund - Series I**
Seeks to provide current income consistent with preservation of capital and liquidity
Invesco Advisers, Inc.
Invesco V.I. Small Cap Equity Fund - Series I
Seeks long-term growth of capital
Invesco Advisers, Inc.
Invesco V.I. Value Opportunities Fund - Series I
Seeks long-term growth of capital
Invesco Advisers, Inc.
American Funds Insurance Series
 
 
American Funds Asset Allocation Fund - Class 2
Seeks high total return (including income and capital gains), consistent with the preservation of capital over the long term
Capital Research and Management Company
American Funds Blue Chip Income and Growth Fund - Class 2
Seeks to produce income exceeding the average yield on U.S. stocks generally and to provide an opportunity for growth of principal consistent with sound common stock investing
Capital Research and Management Company
American Funds Bond Fund - Class 2
Seeks to provide as high a level of current income as is consistent with the preservation of capital
Capital Research and Management Company
American Funds Global Bond Fund - Class 2
Seeks over the long term a high level of total return consistent with prudent investment management
Capital Research and Management Company
American Funds Global Growth and Income Fund - Class 2
Seeks to provide long-term growth of capital while providing current income
Capital Research and Management Company
American Funds Global Growth Fund - Class 2
Seeks to provide long-term growth of capital
Capital Research and Management Company
American Funds Global Small Capitalization Fund - Class 2
Seeks to provide long-term growth of capital
Capital Research and Management Company
American Funds Growth Fund - Class 2
Seeks to provide growth of capital
Capital Research and Management Company
American Funds Growth-Income Fund - Class 2
Seeks to achieve long-term growth of capital and income
Capital Research and Management Company
American Funds International Fund - Class 2
Seeks to provide long-term growth of capital
Capital Research and Management Company
American Funds New World Fund - Class 2
Seeks long-term capital appreciation
Capital Research and Management Company
Franklin Templeton Variable Insurance Products Trust
 
 


APP A-4
 
 
 

Funding Option
Investment Objective Summary
Investment Adviser/Sub-Adviser
Franklin Flex Cap Growth VIP Fund - Class 2
Seeks capital appreciation
Franklin Advisers, Inc.
Franklin Income VIP Fund - Class 2
Seeks to maximize income while maintaining prospects for capital appreciation
Franklin Advisers, Inc., Sub-advised by Templeton Investment Counsel, LLC
Franklin Large Cap Growth VIP Fund - Class 2
Seeks capital appreciation
Franklin Advisers, Inc.
Franklin Mutual Global Discovery VIP Fund - Class 2
Seeks capital appreciation
Franklin Mutual Advisers, LLC, Sub-advised by Franklin Templeton Investment Management Limited
Franklin Mutual Shares VIP Fund - Class 2
Seeks capital appreciation, with income as a secondary goal
Franklin Mutual Advisers, LLC
Franklin Rising Dividends VIP Fund - Class 2
Seeks long-term capital appreciation, with preservation of capital as an important consideration
Franklin Advisory Services, LLC
Franklin Small Cap Value VIP Fund - Class 2
Seeks long-term total return
Franklin Advisory Services, LLC
Franklin Small-Mid Cap Growth VIP Fund - Class 2
Seeks long-term capital growth
Franklin Advisers, Inc.
Franklin Strategic Income VIP Fund - Class 1
Seeks a high level of current income, with capital appreciation over the long term as a secondary goal
Franklin Advisers, Inc.
Templeton Developing Markets VIP Fund - Class 1
Seeks long-term capital appreciation
Templeton Asset Management Ltd.
Templeton Foreign VIP Fund - Class 2
Seeks long-term capital growth
Templeton Investment Counsel, LLC
Templeton Growth VIP Fund - Class 2
Seeks long-term capital growth
Templeton Global Advisors Limited
Hartford Series Fund, Inc.
 
 
Hartford Ultrashort Bond HLS Fund - Class IA
Seeks total return and income consistent with preserving capital and maintaining liquidity
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
MFS® Variable Insurance Trust
 
 
MFS® Global Equity Series - Initial Class
Seeks capital appreciation
MFS Investment Management
MFS® Growth Series - Initial Class
Seeks capital appreciation
MFS Investment Management
MFS® Investors Trust Series - Initial Class
Seeks capital appreciation
MFS Investment Management
MFS® Mid Cap Growth Series - Initial Class
Seeks capital appreciation
MFS Investment Management
MFS® New Discovery Series - Initial Class
Seeks capital appreciation
MFS Investment Management
MFS® Research Series - Initial Class
Seeks capital appreciation
MFS Investment Management
MFS® Total Return Bond Series - Initial Class
Seeks total return with an emphasis on current income, but also considering capital appreciation
MFS Investment Management
MFS® Total Return Series - Initial Class
Seeks total return
MFS Investment Management
MFS® Value Series - Initial Class
Seeks capital appreciation
MFS Investment Management
MFS® Variable Insurance Trust II
 
 
MFS® Core Equity Portfolio - Initial Class
Seeks capital appreciation
MFS Investment Management


APP A-5
 
 
 

Funding Option
Investment Objective Summary
Investment Adviser/Sub-Adviser
MFS® High Yield Portfolio - Initial Class
Seeks total return with an emphasis on high current income, but also considering capital appreciation
MFS Investment Management
MFS® Massachusetts Investors Growth Stock Portfolio - Initial Class
Seeks capital appreciation
MFS Investment Management
MFS® Research International Portfolio - Initial Class
Seeks capital appreciation
MFS Investment Management
*
The Fixed Accumulation Feature is not a Sub-Account and the Company does not provide investment advice in connection with this feature.
**
In a low interest rate environment, yields for money market funds, after deduction of Contract charges, may be negative even though the fund’s yield, before deducting for such charges, is positive. If you allocate a portion of your Contact value to a money market Sub-Account or participate in an Asset Allocation Program where Contact value is allocated to a money market Sub-Account, that portion of the value of your Contract value may decrease in value.



APP A-6
 
 
 

2.
Leaders Edge Series III:
Funding Option
Investment Objective Summary
Investment Adviser/Sub-Adviser
Fixed Accumulation Feature*
Preservation of capital
General Account
AIM Variable Insurance Funds
 
 
Invesco V.I. American Franchise Fund - Series I
Seeks capital growth
Invesco Advisers, Inc.
Invesco V.I. Core Equity Fund - Series I
Seeks long-term growth of capital
Invesco Advisers, Inc.
Invesco V.I. Government Securities Fund - Series I
Seeks total return, comprised of current income and capital appreciation
Invesco Advisers, Inc.
Invesco V.I. International Growth Fund - Series I
Seeks long-term growth of capital
Invesco Advisers, Inc.
Invesco V.I. Mid Cap Core Equity Fund - Series I
Seeks long-term growth of capital
Invesco Advisers, Inc.
Invesco V.I. Mid Cap Growth Fund - Series I
Seeks capital growth
Invesco Advisers, Inc.
Invesco V.I. Government Money Market Fund - Series I**
Seeks to provide current income consistent with preservation of capital and liquidity
Invesco Advisers, Inc.
Invesco V.I. Small Cap Equity Fund - Series I
Seeks long-term growth of capital
Invesco Advisers, Inc.
Invesco V.I. Value Opportunities Fund - Series I
Seeks long-term growth of capital
Invesco Advisers, Inc.
American Funds Insurance Series
 
 
American Funds Asset Allocation Fund - Class 2
Seeks high total return (including income and capital gains), consistent with the preservation of capital over the long term
Capital Research and Management Company
American Funds Blue Chip Income and Growth Fund - Class 2
Seeks to produce income exceeding the average yield on U.S. stocks generally and to provide an opportunity for growth of principal consistent with sound common stock investing
Capital Research and Management Company
American Funds Bond Fund - Class 2
Seeks to provide as high a level of current income as is consistent with the preservation of capital
Capital Research and Management Company
American Funds Global Bond Fund - Class 2
Seeks over the long term a high level of total return consistent with prudent investment management
Capital Research and Management Company
American Funds Global Growth and Income Fund - Class 2
Seeks to provide long-term growth of capital while providing current income
Capital Research and Management Company
American Funds Global Growth Fund - Class 2
Seeks to provide long-term growth of capital
Capital Research and Management Company
American Funds Global Small Capitalization Fund - Class 2
Seeks to provide long-term growth of capital
Capital Research and Management Company
American Funds Growth Fund - Class 2
Seeks to provide growth of capital
Capital Research and Management Company
American Funds Growth-Income Fund - Class 2
Seeks to achieve long-term growth of capital and income
Capital Research and Management Company
American Funds International Fund - Class 2
Seeks to provide long-term growth of capital
Capital Research and Management Company
American Funds New World Fund - Class 2
Seeks long-term capital appreciation
Capital Research and Management Company
Franklin Templeton Variable Insurance Products Trust
 
 


APP A-7
 
 
 

Funding Option
Investment Objective Summary
Investment Adviser/Sub-Adviser
Franklin Flex Cap Growth VIP Fund - Class 2
Seeks capital appreciation
Franklin Advisers, Inc.
Franklin Income VIP Fund - Class 2
Seeks to maximize income while maintaining prospects for capital appreciation
Franklin Advisers, Inc., Sub-advised by Templeton Investment Counsel, LLC
Franklin Large Cap Growth VIP Fund - Class 2
Seeks capital appreciation
Franklin Advisers, Inc.
Franklin Mutual Global Discovery VIP Fund - Class 2
Seeks capital appreciation
Franklin Mutual Advisers, LLC, Sub-advised by Franklin Templeton Investment Management Limited
Franklin Mutual Shares VIP Fund - Class 2
Seeks capital appreciation, with income as a secondary goal
Franklin Mutual Advisers, LLC
Franklin Rising Dividends VIP Fund - Class 2
Seeks long-term capital appreciation, with preservation of capital as an important consideration
Franklin Advisory Services, LLC
Franklin Small Cap Value VIP Fund - Class 2
Seeks long-term total return
Franklin Advisory Services, LLC
Franklin Small-Mid Cap Growth VIP Fund - Class 2
Seeks long-term capital growth
Franklin Advisers, Inc.
Franklin Strategic Income VIP Fund - Class 1
Seeks a high level of current income, with capital appreciation over the long term as a secondary goal
Franklin Advisers, Inc.
Templeton Developing Markets VIP Fund - Class 1
Seeks long-term capital appreciation
Templeton Asset Management Ltd.
Templeton Foreign VIP Fund - Class 2
Seeks long-term capital growth
Templeton Investment Counsel, LLC
Templeton Growth VIP Fund - Class 2
Seeks long-term capital growth
Templeton Global Advisors Limited
Hartford Series Fund, Inc.
 
 
Hartford Ultrashort Bond HLS Fund - Class IA
Seeks total return and income consistent with preserving capital and maintaining liquidity
Hartford Funds Management Company, LLC, Sub-advised by Wellington Management Company LLP
MFS® Variable Insurance Trust
 
 
MFS® Global Equity Series - Initial Class
Seeks capital appreciation
MFS Investment Management
MFS® Growth Series - Initial Class
Seeks capital appreciation
MFS Investment Management
MFS® Investors Trust Series - Initial Class
Seeks capital appreciation
MFS Investment Management
MFS® Mid Cap Growth Series - Initial Class
Seeks capital appreciation
MFS Investment Management
MFS® New Discovery Series - Initial Class
Seeks capital appreciation
MFS Investment Management
MFS® Research Series - Initial Class
Seeks capital appreciation
MFS Investment Management
MFS® Total Return Bond Series - Initial Class
Seeks total return with an emphasis on current income, but also considering capital appreciation
MFS Investment Management
MFS® Total Return Series - Initial Class
Seeks total return
MFS Investment Management
MFS® Value Series - Initial Class
Seeks capital appreciation
MFS Investment Management
MFS® Variable Insurance Trust II
 
 
MFS® High Yield Portfolio - Initial Class
Seeks total return with an emphasis on high current income, but also considering capital appreciation
MFS Investment Management


APP A-8
 
 
 

Funding Option
Investment Objective Summary
Investment Adviser/Sub-Adviser
MFS® Massachusetts Investors Growth Stock Portfolio - Initial Class
Seeks capital appreciation
MFS Investment Management
MFS® Research International Portfolio - Initial Class
Seeks capital appreciation
MFS Investment Management
*
The Fixed Accumulation Feature is not a Sub-Account and the Company does not provide investment advice in connection with this feature.
**
In a low interest rate environment, yields for money market funds, after deduction of Contract charges, may be negative even though the fund’s yield, before deducting for such charges, is positive. If you allocate a portion of your Contact value to a money market Sub-Account or participate in an Asset Allocation Program where Contact value is allocated to a money market Sub-Account, that portion of the value of your Contract value may decrease in value.



APP B-1
 
 
 

Appendix B — Lifetime Income Builder
Objective
Protect your investment from poor market performance through potential annual Benefit Amount increases and provide income through predetermined periodic payments based either on a set schedule or your lifetime.
How does this rider help achieve this goal?
This rider (called the Unified Benefit Rider in your Contract) provides a single Benefit Amount payable as two separate but bundled benefits which form the entire benefit. In other words, this rider is a guarantee of the Benefit Amount that you can access two ways:
•
Withdrawal Benefit allows (a) Benefit Payments: a series of withdrawals which may be paid annually until the Benefit Amount is reduced to zero or (b) Lifetime Benefit Payments: a series of withdrawals which may be paid annually until the death of any Owner if the older Owner (or Annuitant if the Contract Owner is a trust) is age 60 or older. The Benefit Payments and Lifetime Benefit Payments may continue even if the Contract Value is reduced to zero; and/or
•
Guaranteed Minimum Death Benefit (“GMDB”). The GMDB is equal to the greater of the Benefit Amount or the Contract Value if the Contract Value is greater than zero. Depleting the Benefit Amount by taking Surrenders will reduce or eliminate the Guaranteed Minimum Death Benefit. This Guaranteed Minimum Death Benefit replaces the standard Death Benefits provided under this Contract.
When can you buy this rider?
This rider is closed to new investors (including existing Owners).
Does electing this rider forfeit your ability to buy other riders?
Yes. If you elected this rider, you could not elect any rider other than MAV Plus (MAV only in applicable states).
How is the charge for this rider calculated?
The fee for this rider is based on your then current Benefit Amount. This additional charge will automatically be deducted from your Contract Value on each Contract Anniversary. The charge is withdrawn from each Sub-Account and the Fixed Account in the same proportion that the value of the Sub-Account bears to the total Contract Value. The charge is deducted after all other financial transactions and any Benefit Amount increases are made. Once you elect this benefit, we will continue to deduct the charge until we begin to make Annuity Payouts. The rider charge may limit access to Fixed Accounts in certain states.
We reserve the right to increase the charge up to a maximum rate of 0.75% any time on or after your fifth Contract Anniversary or five years from the date from which we last notified you of a fee increase, whichever is later. If we increase this charge, you will receive advance notice of the increase and will be given the opportunity to suspend this and future charge increases. If you suspend any charge increase, you will no longer receive automatic Benefit Amount increases. If we do not receive notice from you to suspend the increase, we will automatically assume that automatic Benefit Amount increases will continue and the new charge will apply. Within 30 days prior to subsequent Contract Anniversaries, you may re-start automatic Benefit Amount increases at the charge in effect since your most recent notification. If you Surrender prior to a Contract Anniversary, a pro rata share of the charge will be assessed and will be equal to the charge multiplied by the Benefit Amount prior to the Surrender, multiplied by the number of days since the last charge was assessed, divided by 365.
You may decline the fee increase and permanently waive automatic Benefit Amount increases by:
•
Notifying us in writing, verbally or electronically, if available.
•
Written notifications must be submitted using the forms we provide. For telephonic and Internet elections, if available, you must authenticate your identity and acknowledge your understanding of the implications of declining the fee increase. We will take direction from one joint Owner. We are not responsible for lost investment opportunities associated with elections that are not in good order and for relying on the genuineness of any election.
•
We will accept your notification up to 60 days prior to the Contract Anniversary on which the fee increase is scheduled to become effective.
•
We will only honor notifications from the Owner or joint Owner and not through your broker.
•
If you decline the fee increase we will suspend automatic Benefit Amount increases. You can re-start automatic Benefit Amount increases within 30 days of your Contract Anniversary if you accept the rider fee currently in effect.
•
If you decline the fee increase, your Lifetime Benefit Payment will continue to be reset on each Contract Anniversary according to the rider’s rules.
Does the Benefit Amount/Payment Base change under this rider?
Yes. The initial Benefit Amount equals your initial Premium Payment. The Benefit Amount will be adjusted in the future through your actions as well as ours. The Benefit Amount will be increased as a result of automatic Benefit Amount increases or subsequent Premium Payments. However, if Surrenders have been taken, your new Benefit Payment may not be greater than your Benefit Payment prior to the Surrender. The Benefit Amount will be decreased as a result of any Surrenders and potentially, any changes in ownership.


APP B-2
 
 
 

•
Automatic Benefit Amount increases. We may increase the Benefit Amount on each Contract Anniversary (referred to as “automatic Benefit Amount increases”), depending on the investment performance of your Contract. To compute this percentage, we will divide your Contract Value on the then current Contract Anniversary by the Maximum Contract Value and then reduce by 1. In no event will this factor be less than 0% or greater than 10%. Automatic Benefit Amount increases will not take place if the investment performance of your Sub-Accounts is neutral or negative. Automatic Benefit Amount increases will continue until the earlier of the Contract Anniversary immediately following the older Owner’s or Annuitant’s 75th birthday or the Annuity Commencement Date.
•
Subsequent Premium Payments. When subsequent Premium Payments are received, the Benefit Amount will be increased by the dollar amount of the subsequent Premium Payment. However, if Surrenders have been taken your new Benefit Payment may not be greater than your Benefit Amount prior to the Surrender.
•
Surrenders. When a Surrender is made, the Benefit Amount will be equal to the amount determined in either (A), (B) or (C) as follows:
A.
If total Surrenders since the most recent Contract Anniversary are equal to or less than the Benefit Payment, the Benefit Amount becomes the Benefit Amount immediately prior to the Surrender, less the amount of Surrender.
B.
If total Surrenders since the most recent Contract Anniversary exceed the Benefit Payment as a result of enrollment in our Automatic Income program to satisfy Required Minimum Distributions, the Benefit Amount becomes the Benefit Amount immediately prior to the Surrender, less the amount of Surrender.
C.
If total Surrenders since the most recent Contract Anniversary exceed the Benefit Payment and the Required Minimum Distribution exception in (B) does not apply, the Benefit Amount is re-calculated to the greater of zero or the lesser of (i) or (ii) as follows:
(i)
the Contract Value immediately following the Surrender; or
(ii)
the Benefit Amount immediately prior to the Surrender, less the amount of Surrender.
•
Benefit Amount limits. Your Benefit Amount cannot be less than zero or more than $5 million. Any sums in excess of this ceiling will not be included for any benefits under this rider.
Since the Benefit Amount is a central source for both benefits under this rider, taking withdrawals will lessen or eliminate the Guaranteed Minimum Death Benefit. Refer to the Examples included in Appendix I for a more complete description of these effects.
Is this rider designed to pay you withdrawal benefits for your lifetime?
Yes. The following section describes both Benefit Payments and Lifetime Benefit Payments which together comprise the Withdrawal Benefit.
•
Benefit Payments
Under this option, Surrenders may be taken immediately as a Benefit Payment that is initially set equal to 5% annually of the initial Benefit Amount. The Benefit Payment is the amount guaranteed for withdrawal each Contract Year until the Benefit Amount is reduced to zero (even if the Contract Value is first reduced to zero). We support this guaranteed payment through our General Account which is subject to our claims paying ability and other liabilities as a company.
The Benefit Payment can be taken on any payment schedule that you request. You can continue to take Benefit Payments until the Benefit Amount has been depleted.
Benefit Payments are treated as partial Surrenders and are deducted from your Contract Value. Each Benefit Payment reduces the amount you may Surrender under your Annual Withdrawal Amount. Surrenders in excess of your Benefit Payment include any applicable Contingent Deferred Sales Charge.
Whenever a Surrender is taken during any Contract Year, the Benefit Payment will be adjusted to equal the amount in either (A), (B) or (C) as follows:
A.
If total Surrenders since the most recent Contract Anniversary are equal to or less than the Benefit Payment, the Benefit Payment until the next Contract Anniversary is equal to the lesser of the Benefit Payment immediately prior to the Surrender or the Benefit Amount immediately after the Surrender.
B.
If total Surrenders since the most recent Contract Anniversary exceed the Benefit Payment as a result of enrollment in our Automatic Income Program to satisfy Required Minimum Distributions, the provisions of (A) will apply.
C.
If total Surrenders since the most recent Contract Anniversary are more than the Benefit Payment and the Required Minimum Distribution exception in (B) does not apply, the Benefit Payment will be re-calculated to equal the Benefit Amount immediately following the Surrender multiplied by 5%.
If you choose an amount less than the Benefit Payment in any Contract Year, the remaining annual Benefit Payment cannot be carried forward to the next Contract Year. You may elect to take Benefit Payments at any time provided that the Benefit Amount is greater than zero.


APP B-3
 
 
 

If you make a subsequent Premium Payment, the Benefit Payment will be re-calculated to equal 5% of the Benefit Amount immediately after the subsequent Premium Payment is made. Subsequent Premium Payments may decrease instead of increase the Benefit Payment. See Example 10 in Appendix I for more information
If there is an increase in the Benefit Amount due to an automatic Benefit Amount increase on any Contract Anniversary, we will automatically re-calculate the Benefit Payment to the greater of the Benefit Payment immediately prior to the increase or the Benefit Amount immediately after the increase multiplied by 5%. If you are enrolled in our Automatic Income Program you must request in writing to increase the amount being withdrawn.
If Surrenders are less than or equal to the Benefit Payment but result in the Contract Value remaining after such Surrender to be less than our minimum amount rules then in effect, we will not terminate the Contract under our minimum amount rules if the Benefit Amount is greater than zero. However, if the Benefit Amount is zero and the Contract Value remaining after any Surrender is also less than our minimum amount rules then in effect, we may terminate the Contract and pay you the Surrender Value.
•
Lifetime Benefit Payments
Under this option, Surrenders may be taken as Lifetime Benefit Payments that are initially equal to 5% annually of the Benefit Amount on the Contract Anniversary immediately following the older Owner’s 60th birthday or 5% of the initial Benefit Amount if the older Owner is 60 or older at the rider’s effective date The Lifetime Benefit Payment is the amount guaranteed to be available for withdrawal each Contract Year until the first death of any Owner (even if the Contract Value is reduced to zero). We support this payment through our General Account which is subject to our claims paying ability and other liabilities as a company.
The Lifetime Benefit Payment can be taken on any payment schedule that you request.
Lifetime Benefit Payments are treated as partial Surrenders and are deducted from your Contract Value. Each Lifetime Benefit Payment reduces the amount you may Surrender under your Annual Withdrawal Amount. Surrenders in excess of your Lifetime Benefit Payment include any applicable Contingent Deferred Sales Charge.
Whenever a Surrender is taken after the Contract Anniversary immediately following the older Owner’s 60th Birthday, the Lifetime Benefit Payment will be equal to the amount determined in either (A), (B) or (C) as follows:
A.
If total Surrenders since the most recent Contract Anniversary are equal to or less than the Lifetime Benefit Payment, the Lifetime Benefit Payment is equal to the Lifetime Benefit Payment immediately prior to the Surrender.
B.
If total Surrenders since the most recent Contract Anniversary exceed the Lifetime Benefit Payment as a result of enrollment in our Automatic Income program to satisfy Required Minimum Distributions, the provisions of (A) will apply.
C.
If total Surrenders since the most recent Contract Anniversary are more than the Lifetime Benefit Payment and the Required Minimum Distribution exception in (B) does not apply, the Lifetime Benefit Payments will be re-calculated to equal the Benefit Amount immediately following the partial Surrender multiplied by 5%.
If you choose an amount less than the Lifetime Benefit Payment in any Contract Year, the remaining annual Lifetime Benefit Payment cannot be carried forward to the next Contract Year.
Lifetime Benefit Payments will be available until the first death of any Owner. If the Contract Value is reduced to zero, Lifetime Benefit Payments will automatically continue under this Fixed Lifetime and Period Certain Annuity Payout.
If you make a subsequent Premium Payment after the Contract Anniversary immediately following the older Owner’s 60th birthday, the Lifetime Benefit Payment will be re-calculated to equal 5% of the Benefit Amount after the subsequent Premium Payment is made.
If Surrenders are not taken prior to the Contract Anniversary immediately following the older Owner’s 60th birthday, the Lifetime Benefit Payment will equal the Benefit Payment. If Surrenders are taken prior to the Contract Anniversary immediately following the older Owner’s 60th birthday, the Lifetime Benefit Payment may be less than the Benefit Payment. The greater of the Benefit Payment or Lifetime Benefit Payment can be taken.
If there is an increase in the Benefit Amount due to an automatic Benefit Amount increase on any Contract Anniversary after the older Owner’s 60th birthday, we will automatically re-calculate the Lifetime Benefit Payment to equal the greater of the Lifetime Benefit Payment immediately prior to the increase or the Benefit Amount immediately after the increase multiplied by 5%.
If a Surrender is less than or equal to the Lifetime Benefit Payment but results in the Contract Value remaining after such Surrender to be less than our minimum amount rules then in effect, we will not terminate the Contract under our minimum amount rules. However, if the Contract Value remaining after any Surrender is less than our minimum amount rules then in effect and the Benefit Amount and your Lifetime Benefit Payments have been reduced to zero, we may terminate the Contract and pay the Surrender Value.
Is this rider designed to pay you Death Benefits?
Yes. This rider includes a Guaranteed Minimum Death Benefit that replaces the standard Death Benefit. The GMDB is equal to the greater of the Benefit Amount or the Contract Value on the date due proof of death is received by us.


APP B-4
 
 
 

The Death Benefit is payable at the first death of an Owner or Annuitant.
Does this rider replace standard Death Benefits?
Yes. This rider replaces the standard Death Benefit.
Can you revoke this rider?
No. However, a Company-sponsored exchange of this rider will not be considered to be a revocation or termination of this rider.
What effect do Full Surrenders have on your benefits under this rider?
You may make a full Surrender of your entire Contract at any time. However, you will receive your Contract Value at the time you request a Surrender with any applicable charges deducted and not the Benefit Amount, Lifetime Benefit Payment or the Benefit Payment amount you would have received under this rider.
If you still have a Benefit Amount or Lifetime Benefit Payment Amount after you Surrender all of your Contract Value (following the provisions or the rider) or your Contract Value is reduced to zero, we will issue a payout annuity. If the Owner is a natural person we will treat the Owners(s) as the Annuitant for purposes of this annuity. If there is more than one Annuitant, the annuity will be on a first-to-die basis (joint and 0% survivor annuity). You may elect to have the Benefit Amount or Lifetime Benefit Payment paid to you under either the Fixed Period Certain Annuity Payout or the Fixed Lifetime and Period Certain Annuity Payout Option. The election is irrevocable.
Under certain circumstances we had permitted certain Contract Owners to reinstate their Contracts (and certain riders) when a Contract Owner had requested a Surrender (either full or Partial) and returned the forms in good order to us. Effective October 4, 2013, we will no longer allow Contract Owners to reinstate their Contracts (or riders) when a Contract Owner requests a Surrender (either full or Partial), except as noted in the section “Are there restrictions on how you must invest?”
If your Benefit Payment or your Lifetime Benefit Payment on your most recent Contract Anniversary exceeds the Annual Withdrawal Amount, we will waive any applicable Contingent Deferred Sales Charge for withdrawals up to that Benefit Payment amount.
What happens if you change ownership?
Any ownership change made prior to the first anniversary of the rider effective date will have no impact on the Benefit Amount, but the Lifetime Benefit Payment may change as long as the new Owner(s) and Annuitant are less than age 76 at the time of the change. The Lifetime Benefit Payment may change based on the age of the new owner.
An ownership change after the first Contract Anniversary that causes a re-calculation in the benefits as long as the older Owner after the change is less than age 76 at the time of the change will automatically result in either (A) or (B):
(A)
If this rider is not currently available for sale, we will continue the existing rider for the GMDB only and the Withdrawal Benefit will terminate. This rider charge will then discontinue.
(B)
If this rider is currently available for sale, we will continue the existing rider with respect to all benefits at your current charge. The Benefit Amount will be re-calculated to the lesser of the Contract Value or the Benefit Amount on the date of the change. The Benefit Payment and Lifetime Benefit Payment will be re-calculated on the date of the change.
If the older Owner is age 76 or greater at the time of an ownership change, this rider will continue with respect to the GMDB only and the Withdrawal Benefit will terminate. The GMDB will be modified to equal Contract Value only and the Rider charge will discontinue.
Ownership changes may be taxable to you. We recommend that you consult with a tax adviser before making any ownership changes.
Can your Spouse continue your Withdrawal Benefit?
Yes. If the Owner dies and the Beneficiary is the deceased Owner’s Spouse at the time of death, the Spouse may continue the Contract and we will adjust the Contract Value to the amount we would have paid as a Death Benefit payment (the greater of the Contract Value and the Benefit Amount). If the Spouse elects to continue the Contract and is less than age 76 at the time of the continuation, then either (A) or (B) will automatically apply:
(A)
If this rider is not currently available for sale, we will continue the existing Lifetime Income Builder for the GMDB only and the Withdrawal Benefit will terminate and the rider charge will discontinue.
(B)
If this rider is currently available for sale, we will continue the existing rider with respect to all benefits at the current charge. The Benefit Amount and Maximum Contract Value will be re-calculated to the Contract Value on the continuation date. The Benefit Payments and Lifetime Benefit Payments will be re-calculated on the continuation date.
If the Spouse elects to continue the Contract and is age 76 or greater at the time of the continuation, this rider will continue with respect to the GMDB only and the Withdrawal Benefits will terminate. The GMDB will be modified to equal Contract Value only and the rider charge will discontinue. Spousal Contract continuation will only apply one time for each Contract.
What happens if you annuitize your Contract?


APP B-5
 
 
 

If you annuitize your Contract, you may choose any of those Annuity Payout Options offered in the Contract. The amount used for calculating Annuity Payout Options will be the Contract Value. In other words, you will forfeit any difference between your Contract Value and Benefit Amount by voluntarily annuitizing before the maximum Annuity Commencement Date.
If the annuity reaches the maximum Annuity Commencement Date the Contract will automatically be annuitized unless we and the Owner(s) agree to extend the Annuity Commencement Date, which approval may be withheld or delayed for any reason. In this circumstance, the Contract may be annuitized under our standard annuitization rules or, alternatively, under Lifetime Income Builder rules applicable when the Contract Value equals zero.
•
Fixed Period Certain Payout Option
If your Contract Value goes to zero, you are entitled to receive payments in a fixed dollar amount for a stated number of years. The actual number of years that payments will be made is determined by dividing the Benefit Amount by the Benefit Payment. The total amount payable under this Annuity Payout Option will equal the Benefit Amount. This annualized amount will be paid over the determined number of years. The frequency of payments you may elect will be among those offered by us at that time but will be no less frequently than annually. The amount payable in the final year of payments may be less than the prior year’s annual amount payable so that the total amount of the payouts will be equal to the Benefit Amount. If, at the death of the any Annuitant, payments have been made for less than the stated number of years, the remaining scheduled payments will be made to the Beneficiary as scheduled payments in accordance with the Code and the Owner’s last instructions on record.
These options may not be available if your contract is issued to qualify under Section 401, 403, 408 or 457 of the Internal Revenue Code of 1986, as amended. For such contracts, these options will be available only if the guaranteed payment period is less than the life expectancy of the Annuitant at the time these options become effective. Such life expectancy will be computed under the mortality table then in use by Us.
Fixed Lifetime and Period Certain Payout Option
If your Contract Value goes to zero and the Owner(s) are alive and age 60 or older, you are entitled to receive payments in a fixed dollar amount until the later of the death of any Annuitant or a minimum number of years. The minimum number of years that payments will be made is determined on the Annuity Calculation Date by dividing the Benefit Amount by the Lifetime Benefit Payment. The total minimum amount payable under this option will equal the Benefit Amount. This Lifetime Benefit Payment amount will be paid over the greater of the minimum number of years, or until the death of any Annuitant. The frequency of payments you may elect will be among those offered by us at that time but will be no less frequently than annually. If, at the death of any Annuitant, payments have been made for less than the minimum number of years, the remaining scheduled payments will be made to the Beneficiary as scheduled payments in accordance with the Code and the Owner’s last instructions on record.
These options may not be available if your contract is issued to qualify under Section 401, 403, 408 or 457 of the Internal Revenue Code of 1986, as amended. For such contracts, these options will be available only if the guaranteed payment period is less than the life expectancy of the Annuitant at the time these options become effective. Such life expectancy will be computed under the mortality table then in use by Us.
Are there restrictions on how you must invest?
Yes. Effective October 4, 2013, we began enforcing our contractual right to require that you allocate your Contract Value and future Premium Payments in accordance with the investment restrictions described in Appendix D as a condition to maintaining the withdrawal benefit of the rider. Your selected allocations are automatically rebalanced quarterly. If your allocations do not comply with the investment restrictions described in Appendix D, on and after October 4, 2013 the living benefit feature of the rider will be revoked. These restrictions are intended to reduce the risk of investment losses that could require the Company to use its General Account assets to pay amounts due under the rider.
To the extent permitted by law, we may modify, add, delete, or substitute, the asset allocation models, investment programs, Funds, portfolio rebalancing requirements, and other investment requirements and restrictions that apply while either rider is in effect. For instance, we might amend these asset allocation models if a Fund (i) merges into another fund, (ii) changes investment objectives, (iii) closes to further investments and/or (iv) fails to meet acceptable risk parameters. These changes will not be applied with respect to then existing investments. We will give you advance notice of these changes. Please refer to “Other Program considerations” under the section entitled “What other ways can you invest?” in Section 5.a for more information regarding the potential impact of Fund mergers and liquidations with respect to then existing investments within an asset allocation model.
Except as provided below, failure to comply with the investment requirement or restriction will result in revocation of the rider. If the rider is revoked by us, for violation of applicable investment requirements or restrictions, we will assess a pro-rated share of the rider charge and will no longer assess a rider charge thereafter. Revocation of the rider will not terminate any concurrent guaranteed minimum death benefit rider.
If the rider is revoked by us due to a failure to comply with these investment restrictions, you will have one opportunity to reinstate the rider by reallocating your Contract Value in accordance with then prevailing investment restrictions. You will have a thirty calendar day reinstatement period to do this. The reinstatement period will begin upon revocation of the rider. Your right


APP B-6
 
 
 

to reinstate the rider will be terminated if during the reinstatement period you make a subsequent Premium Payment, take a partial Surrender or make a Covered Life change. Upon reinstatement, your Payment Base will be reset at the lower of the Payment Base prior to the revocation or Contract Value as of the date of reinstatement. Your Withdrawal Percentage will be reset to equal the Withdrawal Percentage prior to revocation unless during the reinstatement period the relevant Covered Life qualifies for a new age band.
Investment in any asset allocation model could mitigate losses but also hamper potential gains. The asset allocation models that you must invest in under the rider provide very different potential risk/reward characteristics. We are not responsible for lost investment opportunities associated with the implementation and enforcement of these investment requirements and restrictions.
Are there restrictions on the amount of subsequent Premium Payments?
No.
Can we aggregate contracts?
For purposes of determining the Benefit Amount under this rider, we reserve the right to treat one or more Contracts issued by us to you with any optional Withdrawal Benefit rider in the same calendar year as one Contract. Accordingly, if we elect to aggregate Contracts, we will change the period over which we measure withdrawals against the Benefit Payment.
Other information
For examples of how this rider works, see “Appendix I.”
This rider may not be appropriate for all investors. Several factors, among others, should be considered:
•
The benefits under this rider cannot be directly or indirectly assigned, pledged, collateralized or securitized in any way. Any such actions will invalidate this rider.
•
Because these benefits are bundled and interdependent upon one another, there is a risk that you may ultimately pay for benefits that you may never get to use. For instance, if you deplete your Benefit Amount through Surrenders, whether voluntarily or as a result of Required Minimum Distributions, you will reduce your Death Benefit. If your Contract Value is zero as of the date of due proof of death, there will be no Death Benefit. This may be of special concern to seniors.
•
Inasmuch as Withdrawal Benefits may reduce or eliminate the GMDB, electing this rider as part of an investment program involving a qualified plan may not make sense unless, for instance, other features of this Contract such as Withdrawal Benefits and access to Funds, outweigh the absence of additional tax advantages from a variable annuity.
•
Annuitizing your Contract, whether voluntarily or not, will impact these benefits. First, annuitization shall eliminate the Guaranteed Minimum Death Benefit. Second, annuitization will terminate any Withdrawal Benefits which will be converted into annuity payments according to the annuitization option chosen. Accordingly, Lifetime Benefit Payments could be replaced by another “lifetime” payout option and will not be subject to automatic Benefit Amount increases.
•
Even though this rider is designed to provide “living benefits,” you should not assume that you will necessarily receive “payments for life” if you have violated any of the terms of this rider.
•
Purchasing this rider is a one time only event and cannot be undone later. If you elect this rider you will not be able to elect standard Death Benefits or optional riders other than MAV Plus.
•
Any additional contributions made to your Contract after withdrawals have begun will cause the Benefit Amount to be recalculated. If an additional contribution is made, the Benefit Amount will be recalculated to equal the remaining Benefit Amount plus the additional contribution, which could be more or less than the original Benefit Amount and could change the amount of your Benefit Payments or Lifetime Benefit Payments, as the case may be.
•
Spouses who are not a joint Owner or Beneficiary may find continuation of this rider to be unavailable or unattractive after the death of the Owner-Spouse. Continuation of the options available in this rider is dependent upon its availability at the time of death of the first Owner-Spouse and will be subject to then prevailing charges.
•
Certain ownership changes may result in a reduction of benefits.
•
Annuitizing your Contract instead of receiving Benefit Payments or Lifetime Benefit Payments will forfeit any increases in your Benefit Amount over your Contract Value. Voluntary or involuntary annuitization will terminate Lifetime Benefit Payments. Annuity Payout Options available subsequent to the Annuity Commencement Date may not necessarily provide a stream of income for your lifetime and may be less than Lifetime Benefit Payments.
•
Finally, we may increase the charge for this rider on or after the fifth Contract Anniversary or five years since your last increase notification, whichever is later.
•
There are no assurances made or implied that automatic Benefit Amount increases will occur and if occurring, will be predictable.
•
We do not automatically increase payments under the Automatic Income Program if your Lifetime Benefit Payment increases. If you are enrolled in our Automatic Income Program to make Lifetime Benefit Payments and your eligible Lifetime Benefit Payment increases, please note that you need to request an increase in your Automatic Income Program. We will not individually notify you of this privilege.


APP C-1
 
 
 

Appendix C — Lifetime Income Builder Selects and Lifetime Income Builder Portfolios
The Annuity Commencement Date Deferral Option is not available if you have elected either of these riders.
Objective
The objective of these two different riders is to (i) protect your investment from poor market performance; (ii) provide longevity protection through Lifetime Benefit Payments; and (iii) provide Death Benefit protection.
How do the riders help achieve this goal?
•
Lifetime Withdrawal Feature. Provided you follow the rules below, the riders provide a series of Lifetime Benefit Payments payable in each Contract Year following the Relevant Covered Life’s Lifetime Income Eligibility Date until the first death of any Covered Life (“Single Life Option”) or until the second death of any Covered Life (“Joint/Spousal Option”). Lifetime Benefit Payments are maximum amounts that can be withdrawn each year based on the rider chosen:
Lifetime Income
=
Payment Base or Contract Value, whichever is higher
x
Withdrawal Percent
Builder Selects
 
 
 
 
 
 
 - or -
 
 
Lifetime Income
=
Payment Base
x
Withdrawal Percent
Builder Portfolios
 
 
 
 
•
Guaranteed Minimum Death Benefit. This guaranteed minimum Death Benefit provides a Death Benefit equal to the greater of Premium Payments (adjusted for partial Surrenders) or Contract Value as of the date due proof of death is received by us for any Contract Owner or Annuitant. Partial Surrenders will reduce or eliminate the Guaranteed Minimum Death Benefit. This Guaranteed Minimum Death Benefit replaces the standard Death Benefits provided under this Contract.
When can you buy the riders?
The riders are closed to new investors (including existing Owners).
When you buy either rider, you must provide us with the names and date of birth of the Owner, any joint Owner, Annuitant and Beneficiary. We then determine who the “Relevant Covered Life” and other “Covered Lives” will be when establishing the Withdrawal Percent.
•
A Covered Life must be a living person. If you choose the Joint/Spousal Option, we reserve the right to (a) prohibit non-natural entities from being designated as an Owner, (b) prohibit anyone other than your Spouse from being a joint Owner; and (c) impose other designation restrictions from time to time.
•
For the Single Life Option, the Covered Life is most often the same as the Contract Owner and joint Owner (which could be two different people). In the Joint/Spousal Option, the Covered Life is most often the Contract Owner, and his or her Spouse is the joint Owner or Beneficiary.
•
The Relevant Covered Life will be one factor used to establish your Withdrawal Percent. When the Single Life Option is chosen, we use the older Covered Life as the Relevant Covered Life; and when the Joint/Spousal Option is chosen, we use the younger Covered Life as the Relevant Covered Life.
The maximum age of any Contract Owner or Annuitant when electing either rider is 80. These age restrictions also apply to the Beneficiary when the Joint/Spousal Option is chosen.
Does electing either rider forfeit your ability to buy other riders?
Yes. If you elected either rider, you could not elect any rider other than MAV Plus (MAV only in applicable states). You may not elect the Annuity Commencement Date Deferral Option if you elected either of these riders.
How is the charge for either rider calculated?
The fee for the riders is based on your then current Payment Base (not your Contract Value) as of each Contract Anniversary. This charge will automatically be deducted from your Contract Value on your Contract Anniversary after your Anniversary Value and Payment Base have been computed and prior to all other financial transactions. In the event of a full Surrender, a prorated charge will be deducted from your Surrender Value. The charge for the riders will be withdrawn from each Sub-Account and the Fixed Accumulation Feature in the same proportion that the value of each Sub-Account bears to the total Contract Value. Except as otherwise provided below, we will continue to deduct this charge until we begin to make Annuity Payouts. The rider charge may limit access to the Fixed Accumulation Feature in certain states.
We reserve the right to increase the charge for either or both riders (and any option) up to the maximum fees described in the Synopsis at any time 12 months after either rider’s effective date. Any future fee increase will be based on the charge that we are then currently charging other customers who have not previously elected such rider.


APP C-2
 
 
 

Fee increases will not apply if (a) the age of the Relevant Covered Life is 81 or older; (b) you notify us of your election to permanently waive automatic Payment Base increases as described below; or (c) we convert your benefits based on our Minimum Amount rules defined in your Contract. This fee may not be the same as the fee that we charge new purchasers.
Subject to the foregoing limitation, we also reserve the right to charge a different fee for either rider (or options) to any new Contract Owners as a result of a change of Covered Life. Unless exempt, we will automatically deduct rider fees, as they may be increased from time to time.
You will receive advanced notice of any fee increase. You may decline the fee increase and permanently waive automatic Payment Base increases by:
•
Notifying us in writing, verbally or electronically, if available.
•
Written notifications must be submitted using the forms we provide. For telephonic and Internet elections, if available, you must authenticate your identity and acknowledge your understanding of the implications of declining the fee increase. We will take direction from one joint Owner. We are not responsible for lost investment opportunities associated with elections that are not in good order and for relying on the genuiness of any election.
•
We will accept your notification up to 60 days prior to the Contract Anniversary on which the fee increase is scheduled to become effective.
•
We will only honor notifications from the Owner or joint Owner and not through your broker.
•
Your decision to decline the fee increase and waive automatic Payment Base increases is irrevocable. You will not be able to accept the fee increase and resume automatic Payment Base increases in the future.
•
If you decline the fee increase, your Lifetime Benefit Payment will continue to be reset on each Contract Anniversary according to the rider’s rules.
•
If you decline the fee increase, and defer withdrawals for at least five years, the Withdrawal Percentage will continue to be reset when a new age band is reached according to the rider’s rules.
Does the Payment Base change under either rider?
Yes, your initial Payment Base equals your initial Premium Payment except in regard to a company sponsored-exchange program. Your Payment Base will fluctuate based on:
•
automatic Payment Base increases; and
•
subsequent Premium Payments; and
•
partial Surrenders (including partial Surrenders taken prior to the Lifetime Income Eligibility Date or if the amount of the partial Surrender exceeds either your Threshold or Lifetime Benefit Payment amount).
•
Automatic Payment Base Increase: Your automatic annual Payment Base increase varies depending on whether you choose either of these riders. The following table describes how these options operate:
 
Lifetime Income Builder Selects
Lifetime Income Builder Portfolios
New Payment
Base
[(current Anniversary Value (prior to the rider
charge being taken) divided by your prior Payment
Base)] multiplied by your prior Payment Base
The higher of current Anniversary Value (prior to the rider charge being taken) or Payment Base
Annual Payment
Base increase
limits
0% - 10%
Unlimited
We will determine if you are eligible for annual automatic Payment Base increases on each Contract Anniversary. Automatic Payment Base increases will cease upon the earliest of:
•
your Annuity Commencement Date;
•
the Contract Anniversary immediately following the Relevant Covered Life’s attained age of 90; or
•
You waive your right to receive automatic Payment Base increases.
Your Payment Base can never be less than $0 or more than $5 million. Any activities that would otherwise increase the Payment Base above this ceiling will not be included for any benefits under either rider. See Examples 16 and 17 under Lifetime Income Builder Selects and Lifetime Income Builder Portfolios in Appendix I.
•
Subsequent Premium Payments increase your Payment Base on a dollar-for-dollar basis. See Examples 10 and 11 under Lifetime Income Builder Selects and Lifetime Income Builder Portfolios in Appendix I.
•
Partial Surrenders may trigger a recalculation of the Payment Base depending on (a) whether the partial Surrender takes place prior to the Lifetime Income Eligibility Date, and (b) if the cumulative amount of all partial Surrenders during any Contract Year exceeds the applicable limits as discussed below:
A.
If cumulative partial Surrenders taken during any Contract Year and prior to the Lifetime Income Eligibility Date, are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Payment


APP C-3
 
 
 

Base on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to the Lifetime Income Eligibility Date are greater than the Threshold (subject to rounding), then we will reduce the Payment Base on a (i) dollar-for-dollar basis up to the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold.
B.
If cumulative partial Surrenders taken after the Lifetime Income Eligibility Date are equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will not reduce the Payment Base.
C.
For any partial Surrender that causes cumulative partial Surrenders after the Lifetime Income Eligibility Date to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Payment Base on a proportionate basis for the amount in excess of the Lifetime Benefit Payment.
See Examples 3-9 and 12-15 under Lifetime Income Builder Selects and Lifetime Income Builder Portfolios in Appendix I
•
Covered Life changes may also trigger a recalculation of your Payment Base, Lifetime Benefit Payment, Guaranteed Minimum Death Benefit and rider fees. See “What happens if you change ownership?” below.
•
Option Conversion. We reserve the right to offer a one-time only conversion from Lifetime Income Builder Selects to Lifetime Income Builder Portfolios, or vice versa, on or after the first Contract Anniversary after the rider has been in effect and prior to the Relevant Covered Life’s reaching attained age 81. Your then current Payment Base will be your new Payment Base for the purposes of the converted rider. This conversion will go into effect on the next following Contract Anniversary. A conversion notice must be received by us in good order between 30 days prior to, or within 15 days after, a Contract Anniversary. This privilege may be withdrawn at our sole discretion at any time without prior notice. The rider fee and any associated restrictions will be based on the rider then in effect. You may rescind your election within 15 days after making your election. Upon rescission; however, your Payment Base will be reset at the lower of the then applicable Payment Base or the Contract Value at the time of rescission. Rescission of a conversion option may therefore result in a permanent reduction of benefits. Once rescinded, this privilege will be terminated.
•
Partial Surrenders taken during any Contract Year that cumulatively exceed the Annual Withdrawal Amount but do not exceed the Lifetime Benefit Payment will be free of any applicable CDSC.
Is either rider designed to pay you withdrawal benefits for your lifetime?
Yes. However, withdrawals taken prior to the Lifetime Income Eligibility Date are not guaranteed to be available throughout your lifetime. Such withdrawals will reduce (and may even eliminate) the Payment Base otherwise available to establish Lifetime Benefit Payments and Guaranteed Minimum Death Benefits.
As shown in the following table, the Withdrawal Percent for all partial Surrenders taken before the Lifetime Income Eligibility Date will be 5% (Single Life Option) or 4.5% (Joint/Spousal Option). In contrast, the Withdrawal Percent for partial Surrenders taken after the Lifetime Income Eligibility Date will be based on the chronological age of the Relevant Covered Life at the time of the first withdrawal as shown below:
 
 
Withdrawal Percent
Relevant Covered Life
Attained Age
 
Single Life
Option
 
Joint/Spousal
Option
<59½ - 64
 
5.0%
 
4.5%
65 - 69
 
5.5%
 
5.0%
70 - 74
 
6.0%
 
5.5%
75 - 79
 
6.5%
 
6.0%
80 - 84
 
7.0%
 
6.5%
85 - 90
 
7.5%
 
7.0%
90+
 
8.0%
 
7.5%
Except as provided below, the Withdrawal Percent will be based on the chronological age of the Relevant Covered Life at the time of the first Surrender.
1.
If a partial Surrender HAS NOT been taken, your new Withdrawal Percent will be effective on the next birthday that brought the Relevant Covered Life into a new Withdrawal Percent age band; or
2.
If you have deferred taking partial Surrenders for five years from the date you purchased this rider, your new Withdrawal Percent will be effective on the next birthday that brings the Relevant covered Life into a new Withdrawal Percent age band. Your new Withdrawal Percent will thereafter continue to change based on the age of the Relevant Covered Life as shown on the table above regardless of whether partial Surrenders are taken after such five year period or;
3.
If the preceding requirements in (1) or (2) have not been met, your new Withdrawal Percent will be effective as of the Contract Anniversary when the next automatic Payment Base increase occurs due to market performance after the birthday that brings the Relevant Covered Life into a new Withdrawal Percent age band.


APP C-4
 
 
 

If you meet the deferral requirements above, you will not forfeit your right to automatic Withdrawal Percent increases even if you decline future fee increases.
Please refer to Example 24 in Lifetime Income Builder Selects and Lifetime Income Builder Portfolios Examples Appendix for more information.
Is either rider designed to pay you Death Benefits?
Yes. This Guaranteed Minimum Death Benefit guarantees that we will pay a Death Benefit equal to the greater of Premium Payments adjusted for partial Surrenders or Contract Value as of the date we receive due proof of death of the Contract Owner(s) or Annuitant. Termination of either rider will result in the rescission of the Guaranteed Minimum Death Benefit and result in your Beneficiary receiving the Contract Value as of the date we receive due proof of death. If the Lifetime Withdrawal Feature is revoked, we will reduce the Guaranteed Minimum Death Benefit for any partial Surrender after the date the Lifetime Withdrawal Feature was revoked, in proportion to the reduction in Contract Value due to such partial Surrender, and you will no longer be subject to the rider's Investment Restrictions (if applicable to your contract (see the “State Variations” provisions in the “Miscellaneous” section)). For Joint/Spousal election of either rider, no Death Benefit will be available when a Relevant Covered Life is the Beneficiary and the Beneficiary dies.
Partial Surrenders will affect the Guaranteed Minimum Death Benefit as follows:
A.
If cumulative partial Surrenders taken prior to the Lifetime Income Eligibility Date are equal to, or less than, the Threshold (subject to rounding), then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis. Alternatively, if cumulative partial Surrenders taken prior to the Lifetime Income Eligibility Date are greater than the Threshold (subject to rounding), then we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Threshold, and (ii) proportionate basis for the amount in excess of the Threshold.
B.
If cumulative partial Surrenders after the Lifetime Income Eligibility Date are (i) equal to or less than the Lifetime Benefit Payment (subject to rounding), or (ii) exceed the Lifetime Benefit Payment only as a result of enrollment in our Automatic Income Program to satisfy RMD; then the cumulative partial Surrender will reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis.
C.
For any partial Surrender that causes cumulative partial Surrenders after the Lifetime Income Eligibility Date to exceed the Lifetime Benefit Payment and the RMD exception in (B) does not apply, we will reduce the Guaranteed Minimum Death Benefit on a (i) dollar-for-dollar basis up to the amount of the Lifetime Benefit Payment, and (ii) proportionate basis for the amount in excess of the Lifetime Benefit Payment.
Please refer to the section labeled “Can your Spouse continue your Lifetime Withdrawal Feature” for more information on the continuation of the Lifetime Benefit Payments by your Spouse.
Does either rider replace the standard Death Benefit?
Yes, it permanently replaces the standard Death Benefit. The Guaranteed Minimum Death Benefit will be reset to equal Contract Value when there is a Covered Life change that exceeds the permissible age limitation under either rider. This may also occur for the Single Life Option when the spouse elects Spousal Contract continuation and the new Covered Life exceeds the age limit.
Can you revoke this rider?
Yes. You may elect to revoke the Lifetime Withdrawal Feature at any time subject to state availability and only the Guaranteed Minimum Death Benefit shall continue to apply. You may not revoke the Guaranteed Minimum Death Benefit, although the Guaranteed Minimum Death Benefit will be reduced and/or eliminated due to partial withdrawals. We may revoke the Lifetime Withdrawal Feature under the Covered Life change, Spousal Contract continuation and Investment Restrictions provisions (if applicable to your contract (see the “State Variations” provision in the “Miscellaneous” section )). Additionally, we may terminate the entire rider when the oldest Covered Life exceeds the maximum issue age limitation in accordance with the Covered Life change and Spousal Contract continuation provisions. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value.
If the Lifetime Withdrawal Feature is revoked:
•
It cannot be re-elected;
•
You will not receive any Lifetime Withdrawal Payments;
•
We will continue the Guaranteed Minimum Death Benefit only. We will reduce the Guaranteed Minimum Death Benefit for any partial Surrender after the date the Lifetime Withdrawal Feature was revoked, in proportion to the reduction in Contract Value due to such partial Surrender;
•
You will no longer be subject to this rider’s Investment Restrictions; and
•
You become subject to the rules applicable when the Contract Value is below our minimum Contract Value then in effect.


APP C-5
 
 
 

On the date the Lifetime Withdrawal Feature is revoked, a prorated share of the rider charge will be assessed. After that, the rider charge will no longer be assessed. If you elected the single life option, and the Lifetime Withdrawal Feature is revoked under the Spousal Contract continuation provision, the rider charge will not be assessed on the date the rider is revoked.
A Company-sponsored exchange of this rider will not be considered to be a revocation or termination of this rider.
The factors you may consider when determining whether to voluntarily revoke the Lifetime Withdrawal Feature include:  whether you continue to want or need the longevity protection provided by Lifetime Withdrawal Feature payments (the benefit may not be reinstated after it is revoked); whether you wish to cease paying the fees associated with the Lifetime Withdrawal Feature (keep in mind that you have been paying fees for the Lifetime Withdrawal Feature since the effective date of the rider), whether you no longer want to be subject to the investment restrictions required to maintain the Lifetime Withdrawal Feature (if applicable to your contract (see the “State Variations” provisions in the “Miscellaneous” section)); and whether or not you plan on taking partial withdrawals in the future and how these partial withdrawals will reduce the Guaranteed Minimum Death Benefit. As described in the “Is this rider designed to pay you Death Benefits?” section, partial surrenders taken while the Lifetime Withdrawal Feature is in effect reduce the Guaranteed Minimum Death Benefit on a dollar-for-dollar basis or on a proportionate basis (in proportion to the reduction in Contract Value due to such partial withdrawal) depending on when you take withdrawals and/or the amount of cumulative withdrawals.  Partial withdrawals taken after you revoke the Lifetime Withdrawal Feature will reduce the Guaranteed Minimum Death Benefit on a proportionate basis. If your Account Value is less than your Guaranteed Minimum Death Benefit at the time of a partial withdrawal then reducing the Guaranteed Minimum Death Benefit on a proportionate basis will result in a greater reduction in the Guaranteed Minimum Death Benefit than if a dollar-for-dollar reduction was taken. You should consult an investment professional before making any decision to revoke the Lifetime Withdrawal Feature.
Please see “Can your Spouse continue your Lifetime Withdrawal Feature?” and “Are there restrictions on how you must invest?” for more information.
What effect does partial or full Surrenders have on your benefits under this rider?
Please refer to “Does the Benefit Amount/Payment Base change under either rider?” for the effect of partial Surrenders on your Payment Base, Guaranteed Minimum Death Benefit and Lifetime Benefit Payments. You may make a full Surrender of your entire Contract at any time. However, you will receive your Contract Value with any applicable charges deducted and not the Payment Base or any Lifetime Benefit Payment that you would have received under either rider.
Prior to the Annuity Commencement Date, if on any Contract Anniversary your Contract Value, due to investment performance, is reduced below an amount equal to the greater of the Contract minimum amount stated under your Contract or one of your Lifetime Benefit Payments, or if on any Valuation Day, as a result of a Partial Surrender, your Contract Value is reduced below an amount equal to the greater of the Contract minimum amount stated under your Contract or one of your Lifetime Benefit Payments, then the following will occur:
1.
You must transfer your remaining Contract Value to an asset allocation model, investment program, Sub-Account(s), fund of funds Sub-Account(s), or other investment vehicle approved by us for purposes of the minimum amount rule.
a.
One of the approved investment vehicles, as described above, must be elected within 10 days from the date the minimum amount was reached.
b.
If we do not receive your election within the above stated time frame, you will be deemed to have irrevocably authorized us to move your remaining Contract Value into the Money Market Sub-account.
c.
If you choose not to participate in one of the approved investment vehicles, then we will automatically liquidate your remaining Contract Value. Any applicable CDSC will be assessed and the Contract will be fully terminated.
2.
Once the Contract Value is transferred to an approved investment vehicle, the following rules will apply:
a.
You will receive your Lifetime Benefit Payment, which will be equal to your Lifetime Benefit Payment at the time your Contract Value reduces below the rider minimum amount rules at the frequency that you elect. The frequencies will be among those offered by us at that time but will be no less frequently than annually.
b.
Ongoing Lifetime Benefit Payments will no longer reduce your Contract Value.
c.
Ongoing Lifetime Benefit Payments will continue to reduce the remaining Guaranteed Minimum Death Benefit on your Contract. At the death of any Owner, Joint Owner or Annuitant, the greater of the Contract Value or the Guaranteed Death Death Benefit will be paid out as a lump sum settlement unless Spousal Contract continuation is available and elected.
d.
We will no longer accept subsequent Premium Payments.
e.
We will waive the Annual Maintenance Fee and Rider Charge on your Contract.
f.
Automatic Increases on Contract anniversary will no longer apply.
g.
If any amount greater than a Lifetime Benefit Payment is requested within a Contract Year, we will automatically liquidate your remaining Contract Value. Any applicable CDSC will be assessed, the Contract will be terminated and the Guaranteed Minimum Death Benefit will be lost.
See Examples 21 and 22 under Lifetime Income Builder Selects and Lifetime Income Builder Portfolios in Appendix I.


APP C-6
 
 
 

What happens if you change ownership?
Inasmuch as this rider is affected by changes to the Covered Life, only these types of changes are discussed below. We reserve the right to approve all Covered Life changes. Certain approved changes in the designation of the Covered Life may cause a recalculation of the benefits. Covered Life changes also allow us, in our discretion, to impose investment restrictions, as described below.
Any Covered Life change made within the first 6 months from the Contract Issue date will have no impact on the Payment Base or Guaranteed Minimum Death Benefit as long as each succeeding Covered Life is less than the maximum age limitation of the applicable rider at the time of the change. The Withdrawal Percent and Lifetime Benefit Payment will thereafter change based on the age of the new relevant Covered Life.
After the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and partial Surrenders have not yet been taken, in the event that you and your Spouse become legally divorced, you may add a new Spouse to the Contract. Provided that the age limitation of the rider is not exceeded, the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will then recalculate your Withdrawal Percent based on the age of the younger Covered Life as of the date of the change. The charge for this rider will remain the same.
Alternatively, if after the first 6 months from the Contract Issue date, if you elected the Joint/Spousal Option and Surrenders have been taken, in the event that you and your Spouse become legally divorced, you may only remove your ex-Spouse from the Contract whereupon the Payment Base and Guaranteed Minimum Death Benefit will remain the same. We will then recalculate your Withdrawal Percent based on the age of the remaining Covered Life as of the date of the change. The charge for this rider will remain the same.
You may not convert your Joint/Spousal Option election to a Single Life Option. In addition, after the first six months following the Contract issue date, if any Covered Life change takes place that is not due to a divorce, then:
A.
If the older Covered Life after the change is equal to or less than the maximum age limitation of the rider at the time of the change, then we will revoke the Lifetime Withdrawal Feature of either rider and continue the Guaranteed Minimum Death Benefit only. The Guaranteed Minimum Death Benefit will be recalculated to be the lesser of the Contract Value or the Guaranteed Minimum Death Benefit effective on the date of the change. The charge for the rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter.
B.
If the older Covered Life after the change exceeds the maximum age limitation of either rider at the time of the change, or we no longer offer either rider, then the rider will terminate. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value.
If you elected the Single Life Option and any Covered Life changes after the first 6 months from Contract Issue date, then:
A.
If the older Covered Life after the change exceeds the maximum age limitation of this rider at the time of the change; the rider will be terminated and removed from the Contract. The Guaranteed Minimum Death Benefit will then be equal to the Contract Value; or
B.
If we no longer offer such rider, we will continue the Guaranteed Minimum Death Benefit after resetting this benefit to the lower of the then applicable Guaranteed Minimum Death Benefit or Contract Value on the effective date of the Covered Life change; whereupon the Lifetime Withdrawal Feature will be revoked. The charge for this rider then in effect will be assessed on the revocation date and will no longer be assessed thereafter; or
C.
If we offer such rider, then we will use the attained age of the older Covered Life as of the date of the Covered Life change to reset the Withdrawal Percent. The Payment Base will be recalculated to be the lesser of the Contract Value or the Payment Base effective on the date of the change. The Guaranteed Minimum Death Benefit will be recalculated to be the lesser of the Contract Value or the Guaranteed Minimum Death Benefit effective on the date of the change.
If such rider is no longer available for sale, we will determine the issue age limitation of the rider on a non-discriminatory basis.
The following tables illustrate only some of the various changes and the resulting outcomes associated with deaths of the Contract Owner(s) or Annuitant before and after the Annuity Commencement Date.


APP C-7
 
 
 

Single Life Option Election:
If the Deceased is . . .
and . . .
and . . .
then the . . .
Contract Owner
There is a surviving non-spousal Contract Owner
The Annuitant is living or deceased
Joint Contract Owner receives the Death Benefit and this rider terminates
Contract Owner
There is a surviving spousal Contract Owner
The Annuitant is living or deceased
Joint Contract Owner receives the Death Benefit and this rider can continue under Spousal Contract continuation
Contract Owner
There is no surviving Contract
Owner
The Annuitant is living or deceased
Rider terminates. Designated Beneficiary receives the Death Benefit
Contract Owner
There is no surviving Contract
Owner or Beneficiary
The Annuitant is living or
deceased
Rider terminates. Estate receives the Death Benefit
Annuitant
Contract Owner is living
There is no Contingent Annuitant and the Contract Owner becomes the Contingent Annuitant
Contract continues, no Death Benefit is paid, and this rider continues
Annuitant
Contract Owner is living
There is no Contingent Annuitant and the Contract Owner waives their right to become the Contingent Annuitant
Rider terminates and Contract Owner receives the Death Benefit
Annuitant
Contract Owner is Living
Contingent Annuitant is
Living
Contingent Annuitant becomes the Annuitant and the Contract and this rider continues
Joint/Spousal Election:
If the Deceased is . . .
and . . .
and . . .
then the . . .
Contract Owner
There is a surviving Contract Owner
The Annuitant is living or deceased
The surviving Contract Owner continues the Contract and rider; we will increase the Contract Value to the Death Benefit value
Contract Owner
There is no surviving Contract Owner
The Spouse is the sole primary beneficiary
Follow Spousal Contract continuation rules for joint life elections
Contract Owner
There is no surviving Contract Owner or Beneficiary
The Annuitant is living or deceased
Rider terminates and Contract Owner’s estate receives the Death Benefit
Annuitant
The Contract Owner is living
There is a Contingent Annuitant
The Rider continues; upon the death of the last surviving Covered Life, the rider will terminate.
Ownership changes may be taxable to you. We recommend that you consult with a tax adviser before making any ownership changes.
Can your Spouse continue your Lifetime Withdrawal Feature?
•
Single Life Option:
If a Covered Life dies and the sole Beneficiary is the deceased Covered Life’s Spouse at the time of death, such Spouse may continue the Contract. If the Spouse elects to continue the Contract and such rider, we will continue the rider with respect to all Lifetime Withdrawal Features at the charge that is currently being assessed for new sales at the time of continuation. We will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater. The Covered Life will be re-determined on the date of Spousal Contract continuation. If the new Covered Life is less than age 81 at the time of the Spousal Contract continuation, and such rider (or a similar rider, as we determine) is still available for sale, the Payment Base and the Guaranteed Minimum Death Benefit will be set equal to the Contract Value, the Withdrawal Percent will be recalculated based on the age of the older remaining Covered Life on the effective date of the Spousal Contract continuation. If the new Covered Life is 81


APP C-8
 
 
 

or older at the time of the Spousal Contract continuation, the rider will terminate and the Guaranteed Minimum Death Benefit will be equal to the Contract Value.
If we are no longer offering such rider at the time of Spousal Contract continuation, we will revoke the Lifetime Withdrawal Feature and the rider charge will no longer be assessed.
•
Joint/Spousal Option:
Either rider is designed to facilitate the continuation of your rights under the rider by your Spouse through the inclusion of a Joint/Spousal Option. If a Covered Life dies and the Spouse elects to continue the Contract, we will increase the Contract Value to the Guaranteed Minimum Death Benefit, if greater and we will continue the rider with respect to all benefits at the current rider charge. The benefits will be reset as follows:
•
The Payment Base will be equal to the greater of Contract Value or the Payment Base on the Spousal Contract continuation date;
•
The Guaranteed Minimum Death Benefit will be equal to the Contract Value on the Spousal Contract continuation date;
•
The Withdrawal Percent will remain at the current percentage if partial Surrenders have commenced; otherwise the Withdrawal Percent will be based on the attained age of the remaining Covered Life on the Spousal Contract continuation date; and
•
The Lifetime Benefit Payment will be recalculated.
The remaining Covered Life can not name a new owner on the Contract. Any new Beneficiary that is added to the Contract will not be taken into consideration as a Covered Life. Either rider will terminate upon the death of the remaining Covered Life.
See Examples 18 and 19 under Lifetime Income Builder Selects and Lifetime Income Builder Portfolios in Appendix I.
What happens if you annuitize your Contract?
You may continue your Lifetime Benefit Payment provided under this rider by electing the Life Annuity Payout Option. This annuitization option will not be available if you have revoked your Withdrawal Feature. Alternatively, you may choose any of the annuitization options provided under your Contract. In this instance, you will forfeit the Lifetime Benefit Payments provided under this rider.
Annuity Payout Options under this rider:
•
Single Life Option:
If you have elected the Single Life Option, we will issue you a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the Covered Life determined at Annuity Commencement Date. We treat the Covered Life as the Annuitant for this payout option. If there is more than one Covered Life, then the lifetime portion will be based on both Covered Lives. The Covered Lives will be the Annuitant and joint Annuitant for this payout option. The lifetime portion will terminate on the first death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit under this rider.
If the older Annuitant is younger than age 59½, we will automatically defer the date the payments begin until the anniversary after the older Annuitant attains age 59½ and is eligible to receive payments in a fixed dollar amount until the later of the death of any Annuitant or a period certain.
If the Annuitant and joint Annuitant are alive and the older Annuitant is age 59½ or older, you will receive payments in a fixed dollar amount until the later of the death of any Annuitant or a period certain.
The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by your Lifetime Benefit Payment on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of any Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to your Lifetime Benefit Payment on the Annuity Commencement Date. The frequencies will be among those offered by us at that time but will be no less frequently than annually. If, at the death of any Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available.
If your Contract is issued to qualify under Section 401, 403, 408, or 457 of the Internal Revenue Code of 1986, as amended, the period certain will be limited to the life expectancy of the Annuitant, if less, at the time this option becomes effective. Such life expectancy will be computed under the mortality table then in use by Us.
•
Joint/Spousal Option:
If you have elected the Joint/Spousal Option and both Spouses are alive, we will issue you a Fixed Joint & Survivor Lifetime and Period Certain Payout. If only one Spouse is alive, we will issue a Fixed Lifetime and Period Certain Payout. The lifetime portion will be based on the surviving Covered Life. The Covered Lives will be the Annuitant and Joint Annuitant for this payout option. The lifetime benefit will terminate on the last death of the two. The minimum amount paid to you under this Annuity Option will at least equal the remaining Guaranteed Minimum Death Benefit.


APP C-9
 
 
 

If the younger Annuitant is alive and younger than age 59½, we will automatically defer the date that payments begin until the anniversary after the younger Annuitant attains age 59½ and is eligible to receive payments in a fixed dollar amount until the death of the last surviving Annuitant or a period certain.
If the Annuitant is alive and the younger Annuitant is age 59½ or older, you will receive payments in a fixed dollar amount until the later of the death of the last surviving Annuitant or a period certain.
The period certain over which payments will be made is equal to the Guaranteed Minimum Death Benefit divided by your Lifetime Benefit Payment on the Annuity Commencement Date. Payments will be made over the greater of the period certain, or until the death of the last Surviving Annuitant, in the frequency that you elect. The annual amount that will be paid to you will be equal to your Lifetime Benefit Payment on the Annuity Commencement Date. The frequencies will be among those offered by us at that time but will be no less frequently than annually. If, at the death of the last surviving Annuitant, payments have been made for less than the period certain, the remaining scheduled period certain payments will be made to the Beneficiary. A lump sum option is not available.
If your Contract is issued to qualify under Section 401, 403, 408, or 457 of the Internal Revenue Code of 1986, as amended, the period certain will be limited to the life expectancy of the Annuitant, if less, at the time this option becomes effective. Such life expectancy will be computed under the mortality table then in use by Us.
Are there restrictions on how you must invest?
Yes, as described below:
Lifetime Income Builder Selects     
Effective October 4, 2013, we began enforcing our contractual right to require that you allocate your Contract Value and future Premium Payments must be invested in accordance with the investment restrictions described in Appendix D as a condition to maintaining the withdrawal benefit of the rider. Your allocations are automatically rebalanced quarterly. If your allocations do not comply with the investment restrictions described in Appendix D on and after October 4, 2013 the withdrawal benefit of your rider will be revoked. These restrictions are intended to reduce the risk of investment losses that could require the Company to use its General Account assets to pay amounts due under the rider.
To the extent permitted by applicable law we may modify, add, delete, or substitute (to the extent permit by applicable law), the asset allocation models, investment programs, Funds, portfolio rebalancing requirements, and other investment requirements and restrictions that apply while the rider is in effect. For instance, we might amend these asset allocation models if a Fund (i) merges into another fund, (ii) changes investment objectives, (iii) closes to further investments and/or (iv) fails to meet acceptable risk parameters. These changes will not be applied with respect to then existing investments. We will give you advance notice of these changes. Please refer to “Other Program considerations” under the section entitled “What other ways can you invest?” in Section 5.a for more information regarding the potential impact of Fund mergers and liquidations with respect to then existing investments within an asset allocation model.
Except as provided below, failure to comply with the investment restrictions will result in revocation of the withdrawal feature. If the withdrawal feature is revoked by us for violation of applicable investment restrictions, we will assess a pro-rated share of the rider charge and will no longer assess a rider charge thereafter. Revocation of the withdrawal feature will not terminate any concurrent guaranteed minimum death benefit rider.
If the withdrawal feature is revoked by us due to a failure to comply with these investment restrictions, you will have one opportunity to reinstate the rider by reallocating your Contract Value in accordance with then prevailing investment restrictions. You will have a thirty calendar day reinstatement period to do this. The reinstatement period will begin upon revocation of the withdrawal feature. Your right to reinstate the rider will be terminated if during the reinstatement period you make a subsequent Premium Payment, take a partial Surrender or make a Covered Life change. Upon reinstatement, your Payment Base will be reset at the lower of the Payment Base prior to the revocation or Contract Value as of the date of reinstatement. Your Withdrawal Percentage will be reset to equal the Withdrawal Percentage prior to revocation unless during the reinstatement period the relevant Covered Life qualifies for a new age band.
Investment in any asset allocation model could mitigate losses but also hamper potential gains. The asset allocation models that you must invest in under the rider provide very different potential risk/reward characteristics. We are not responsible for lost investment opportunities associated with the implementation and enforcement of these investment requirements and restrictions.


APP C-10
 
 
 

Lifetime Income Builder Portfolios
Your Contract Value must be invested in one or more Programs and in an approved model portfolio, Funds or other investment vehicles established from time to time. Permissible portfolios, Funds, Programs or other investment vehicles are described in Appendix H. Not all model portfolios or Programs are available through all Financial Intermediaries.
To the extent permitted by applicable law, we may, in our sole discretion, add, replace or alter Funds, Programs and model portfolios from time to time. You will be provided with advance notification of any investment restriction changes. Changes may be made on a prospective basis with respect to any additional Premium Payments received.
While you may switch from model portfolio to model portfolio, you cannot pick and choose Funds within any model portfolios nor may you specify which Funds should be redeemed to satisfy the Lifetime Withdrawal Feature. You may provide written investment instructions to invest Contract Value in a manner that violates these investment restrictions. Any such action will, however, result in the revocation of your withdrawal feature under either rider.
Investments within model portfolios will fluctuate in value and may be worth more or less than your original investment. We are not responsible for lost investment opportunities associated with the implementation of these investment restrictions. Please refer to each Fund’s investment objectives, policies and restrictions and the risks of investing in each Fund as described in this prospectus and the prospectus for each Fund.
If your Lifetime Withdrawal Feature is revoked due to failure to comply with the investment restrictions, you will have a one time opportunity to reinstate the Lifetime Withdrawal Feature on your rider. There is a thirty calendar day reinstatement period that will begin from the date your lifetime withdrawal feature is revoked. During the reinstatement period, if you make a subsequent Premium Payment, take a partial Surrender or make a Covered Life change, your opportunity to reinstate will be terminated.
Upon reinstatement of your Lifetime Withdrawal Feature under either rider, your Payment Base will be reset at the lower of the Payment Base prior to the revocation and Contract Value as of the date of the reinstatement. Your Withdrawal Percentage will be set equal to the Withdrawal Percentage prior to the Lifetime Withdrawal Feature revocation; unless, if within the reinstatement period you reach a new age band and no partial Surrenders have been taken, then the Withdrawal Percentage will be set equal to the appropriate percentage based on the attained age of the Relevant Covered Life. Your Lifetime Benefit Payment will be recalculated based on the Lifetime Withdrawal Feature values as of the date of the reinstatement. We will deduct a prorated rider charge on your Contract Anniversary following the reinstatement for the time period between the reinstatement date and your first Contract Anniversary following the reinstatement.
Are there restrictions on the amount of subsequent Premium Payments?
Yes. We reserve the right to require our approval on all subsequent Premium Payments received after the first twelve months. We may not accept any subsequent Premium Payment which brings the total of such cumulative subsequent Premium Payments in excess of $100,000 without prior approval. This restrictions are not currently enforced. Following your Annuity Commencement Date, we will no longer accept subsequent Premium Payments.
Can we aggregate Contracts?
Yes. For purposes of determining the Payment Base and Premium Payment limits, we reserve the right to treat as one all deferred variable annuity Contracts issued by us where you have elected any optional withdrawal benefit rider. If we elect to aggregate Contracts, we will change the period over which we measure Surrenders against future Lifetime Benefit Payments.
We will treat the effective date of our aggregation election until the end of the applicable calendar year as a Contract Year for the purposes of the Lifetime Benefit Payment limit. A pro-rata rider fee will be taken at the end of that calendar year. After the first calendar year following aggregation, the Lifetime Benefit Payment limits will be aggregated and will thereafter be set on a calendar year (i.e., January 1 Contract Anniversary) basis. The rider fee then in effect will be taken at the end of each new Contract Anniversary.
Other information
This rider may not be appropriate for all investors. Several factors, among others, should be considered:
•
The benefits under this rider cannot be directly or indirectly assigned, collateralized, pledged or securitized in any way. Any such actions will invalidate the rider and allow us to terminate the rider.
•
Your annual Lifetime Benefit Payments may fluctuate based on changes in the Payment Base and Contract Value. The Payment Base is sensitive to partial Surrenders in excess of the then current maximum Lifetime Benefit Payment or Threshold. It is therefore possible that Surrenders and subsequent Premium Payments within the same Contract Year, whether or not equal to one another, can result in lower Lifetime Benefit Payments.
•
Annuitizing your Contract, whether voluntary or not, will impact and possibly eliminate these “lifetime” benefits. First, you may no longer invest additional Premium Payments. Second, the Death Benefit will immediately terminate. Third, any Guaranteed Minimum Withdrawal Benefit guarantees you elect may end. In cases where you are required to annuitize, you will forfeit automatic Payment Base increases (if applicable) and lifetime annuitization payments may equal (or possibly exceed) Lifetime Benefit Payments. However, where you elect to annuitize before a required Annuity Commencement Date, lifetime annuitization payments might be less than the income guaranteed by your Guaranteed Minimum Withdrawal Benefit.


APP C-11
 
 
 

•
If you had elected the conversion option from Lifetime Income Builder Selects to Lifetime Income Builder Portfolios, or vice versa, and subsequently rescinded that election, your Payment Base will be set to the lower of the Payment Base or the Contract Value on the date of the rescission and therefore your old Payment Base will not be restored. The Death Benefit will also be set to the lower of the Guaranteed Minimum Death Benefit and the Contract Value on the date of the rescission.
•
Even though either rider is designed to provide living benefits, you should not assume that you will necessarily receive payments for life if you have violated any of the terms of this rider.
•
While there is no minimum age for electing either rider, withdrawals taken prior to the Lifetime Income Eligibility Date will reduce, or can even eliminate guaranteed Lifetime Benefit Payments. Payments taken prior to the Lifetime Income Eligibility Date are not guaranteed to last for a lifetime. Either rider may not be suitable if a Covered Life is under attained age 59½.
•
The determination of the Relevant Covered Life is established by the Company and is critical to the determination of many important benefits such as the Withdrawal Percent used to set Lifetime Benefit Payments. Applicants should confirm this determination and be sure they fully appreciate its importance before investing.
•
We may terminate either or both riders post-election based on your violation of benefit rules and may otherwise withdraw such rider (or any option) for new sales at any time. In the event that either rider (or any option) is terminated by us, your Lifetime Benefit Payments will cease; your Payment Base, including any automatic Payment Base increases will be eliminated and the Guaranteed Minimum Death Benefit will then be equal to the Contract Value, and you will not be allowed to elect any other optional benefit rider.
•
Unless otherwise provided, you may select either rider only at the time of sale and once you do so, you may not add any other optional withdrawal benefits during the time you own this Contract. If you elect either rider you will not be eligible to elect optional riders other than MAV or MAV Plus.
•
When the Single Life Option is chosen, Spouses may find continuation of either rider to be unavailable or unattractive after the death of the Contract Owner. Continuation of the benefits available in either optional rider is dependent upon its availability at the time of death of the first Covered Life and will be subject to then prevailing charges.
•
The Joint/Spousal Option provides that if you and your Spouse are no longer married for any reason other than death, the removal and replacement of your Spouse will constitute a Covered Life change. This can result in the resetting of all benefits under this rider.
•
Certain Covered Life changes may result in a reduction, recalculation or forfeiture of benefits.
•
Annuity pay-out options available subsequent to the Annuity Commencement Date may not necessarily provide a stream of income for your lifetime and may be less than Lifetime Benefit Payments.
•
The fee for either rider may increase any time after 12 months from either rider’s effective date. There are no assurances as to the fee we will be charging at the time of each Payment Base increase. This is subject to the maximum fee disclosed in the Synopsis.
•
Because these benefits are bundled and interdependent upon one another, there is a risk that you may ultimately pay for benefits that you may never get to use.
•
We do not automatically increase payments under the Automatic Income Program if your Lifetime Benefit Payment increases. If you are enrolled in our Automatic Income Program to make Lifetime Benefit Payments and your eligible Lifetime Benefit Payment increases, please note that you need to request an increase in your Automatic Income Program. We will not individually notify you of this privilege.




APP D-1
 
 
 

Appendix D - Optional Rider Investment Restrictions

(Percentage allocations apply to value in the Sub-Accounts)

A. Investment Restrictions For

•
Lifetime Income Builder
•
Lifetime Income Builder II
 
•
Lifetime Income Builder Selects
•
Lifetime Income Foundation

Applicable To The Following Product

•
Leaders Edge 3


(If applicable to your contract (see the "State Variations" provisions in the "Miscellaneous" section))
You must allocate your Sub-Account Value in accordance with the following investment restrictions on and after to October 4, 2013:
(1) SELF SELECT
Category 1:    Fixed Income Rule: Minimum 40% of allocation Maximum of 100% of allocation*
Category 2:    Acceptable Investment Options (Equity or Multi-Asset) Rule: Maximum 60% of allocation, maximum 20% in any one fund
Category 3:    Limited Investment Options (Equity, Multi-Asset, or Bond) Rule: Maximum 20% of allocation, maximum of 10% in any one fund
Category 1: Fixed Income Rule: Minimum 40% of allocation Maximum of 100% of allocation*
American Funds Bond Fund
Invesco V.I. Government Securities Fund
Invesco V.I. Government Money Market Fund
MFS Total Return Bond Series

*    If you have 100% allocation to the Fixed Accumulation Feature (FAF) on and after October 4, 2013 you will comply with these investment restrictions for as long as your allocation remains at 100% to the FAF. Please remember that effective October 4, 2013, the FAF was closed to new allocations or Premium Payments (with limited state exclusions). Therefore, if you move any money out of the FAF and into the Sub-Accounts you will not be able to move it back into the FAF AND your Sub-Account allocations must comply with these investment restrictions in order to prevent the revocation of your withdrawal feature.

Category 2: Acceptable Investment Options (Equity or Multi-Asset) Rule: Maximum 60% of allocation, maximum 20% in any one fund                
American Funds Asset Allocation Fund                
American Funds Blue Chip Income and Growth Fund                
American Funds Global Growth and Income Fund                
American Funds Global Growth Fund                
American Funds Growth Fund                
American Funds Growth-Income Fund                
Franklin Flex Cap Growth VIP Fund
Franklin Income VIP Fund                
Franklin Large Cap Growth VIP Fund
Franklin Mutual Global Discovery VIP Fund
Franklin Mutual Shares VIP Fund                
Franklin Rising Dividends VIP Fund                 


APP D-2
 
 
 

Invesco V.I. Core Equity Fund                
Invesco V.I. International Growth Fund                
Invesco V.I. American Franchise Fund
Invesco V.I. Value Opportunities Fund
MFS Core Equity Series                
MFS Global Equity Series
MFS Growth Series                
MFS Massachusetts Investors Growth Stock Portfolio
MFS Investors Trust Series                
MFS Research International Series                
MFS Research Series                 
MFS Total Return Series                 
MFS Value Series                
Templeton Foreign VIP Fund                

Category 3: Limited Investment Options (Equity, Multi-Asset, or Bond) Rule: Maximum 20% of allocation, maximum of 10% in any one fund                
American Funds Global Bond Fund                
American Funds Global Small Capitalization Fund                
American Funds International Fund                 
American Funds New World Fund                 
Franklin Small Cap Value VIP Fund                 
Franklin Small-Mid Cap Growth VIP Fund                 
Franklin Strategic Income VIP Fund                 
Invesco V.I. Mid Cap Core Fund
Invesco V.I. Small Cap Equity Fund                
MFS High Yield Portfolio                
MFS Mid Cap Growth Series                
MFS New Discovery Series                
Templeton Developing Markets VIP Fund
Templeton Growth VIP Fund

(2) ASSET ALLOCATIONS MODELS

As of May 2, 2016, the following models are available:
Fund
2016 Series 129
2016 Series 130
2016 Series 215
2016 Series 315
American Funds Blue Chip Income and Growth Fund
5%
7%
8%
9%
American Funds Bond Fund
20%
15%
11%
9%
American Funds Global Bond Fund
10%
7%
6%
4%
American Funds Growth-Income Fund
3%
4%
5%
6%
American Funds International Fund
3%
4%
5%
6%
Franklin Large Cap Growth VIP Fund
5%
6%
7%
8%
Franklin Mutual Global Discovery VIP Fund
2%
3%
4%
5%
Franklin Small-Mid Cap Growth VIP Fund
2%
3%
3%
4%
Invesco V.I. Government Securities Fund
25%
19%
16%
11%
Invesco V.I. Small Cap Equity Fund
2%
3%
4%
5%
MFS High Yield Portfolio
15%
19%
17%
16%
MFS Investors Trust Series
3%
4%
5%
7%
Templeton Developing Markets VIP Fund
2%
3%
4%
4%
Templeton Foreign VIP Fund
3%
3%
5%
6%
Total
100%
100%
100%
100%



APP D-3
 
 
 


(3) INVESTMENT MODELS
Series 7006
MFS Total Return Bond Series
40
%
Franklin Small-Mid Cap Growth VIP Fund
10
%
Templeton Growth VIP Fund
10
%
Franklin Mutual Shares VIP Fund
20
%
Franklin Rising Dividends VIP Fund
20
%
Total
100
%
Series 7007
American Funds Bond Fund
40
%
American Funds Global Small Capitalization Fund
10
%
American Funds Growth Fund
20
%
American Funds Growth-Income Fund
20
%
American Funds International Fund
10
%
Total
100
%
Series 7008
MFS Total Return Bond Series
40
%
Franklin Rising Dividends VIP Fund
20
%
MFS Growth Series
20
%
Templeton Foreign VIP Fund
10
%
Invesco V.I. International Growth Fund
10
%
Total
100
%


APP D-4
 
 
 

B. Investment Restrictions For

•
Lifetime Income Builder Portfolios

Applicable To The Following Product

•
Leaders Edge 3


(If applicable to your contract (see the "State Variations" provisions in the "Miscellaneous" section))
(1) INVESTMENT STRATEGY
Series 8009
Franklin Income VIP Fund
34
%
Franklin Mutual Shares VIP Fund
33
%
Templeton Growth VIP Fund
33
%
Total
100
%
Series 8011
American Funds Bond Fund
25
%
American Funds Global Small Capitalization Fund
10
%
American Funds Growth-Income Fund
25
%
American Funds Growth Fund
25
%
American Funds International Fund
15
%
Total
100
%
(2) PORTFOLIO PLANNER MODELS

As of May 2, 2016, the following models are available:
Fund
2016 Series 129
2016 Series 130
2016 Series 215
2016 Series 315
2016 Series 415
American Funds Blue Chip Income and Growth Fund
5%
7%
8%
9%
10%
American Funds Bond Fund
20%
15%
11%
9%
6%
American Funds Global Bond Fund
10%
7%
6%
4%
4%
American Funds Growth-Income Fund
3%
4%
5%
6%
7%
American Funds International Fund
3%
4%
5%
6%
7%
Franklin Large Cap Growth VIP Fund
5%
6%
7%
8%
9%
Franklin Mutual Global Discovery VIP Fund
2%
3%
4%
5%
6%
Franklin Small-Mid Cap Growth VIP Fund
2%
3%
3%
4%
5%
Invesco V.I. Government Securities Fund
25%
19%
16%
11%
8%
Invesco V.I. Small Cap Equity Fund
2%
3%
4%
5%
6%
MFS High Yield Portfolio
15%
19%
17%
16%
12%
MFS Investors Trust Series
3%
4%
5%
7%
8%
Templeton Developing Markets VIP Fund
2%
3%
4%
4%
5%
Templeton Foreign VIP Fund
3%
3%
5%
6%
7%
Total
100%
100%
100%
100%
100%





APP D-5
 
 
 

(3) INDIVIDUAL SUB-ACCOUNTS:

You may choose any combination of these funds as long as they equal 100% of your Sub-Account allocation. For example, you may allocate 100% of you Sub-Account allocation to ONE of these funds OR you may allocate among TWO, or ALL THREE of these funds as long as your Sub-Account allocation equals 100%.
Hartford Ultrashort Bond HLS Fund
Invesco V.I. Government Money Market Fund
MFS Total Return Series


APP E-1
 
 
 

Appendix E - Information Regarding Contract Series No Longer Sold
Overview
The following information amends and supplements the Prospectus only with respect to those Series no longer sold.
Synopsis
The following table describes some of the fees and expenses that you will pay periodically and on a daily basis (except as noted) during the time that you own the Contract, not including fees and expenses of the underlying Funds. Please refer to the Synopsis (Section 2) for more information regarding all other applicable fees and expenses.
Separate Account Annual Expenses (as
a percentage of average daily Sub-Account Value)
Access
Core
Edge
Outlook
Plus
Mortality and Expense Risk Charge
1.50%
1.20%
0.80%
1.50%
1.50%
Administrative Charge
0.15%
0.15%
0.15%
0.20%
0.15%
Total Separate Account Annual Expenses
1.65%
1.35%
0.95%
1.70%
1.65%
This Example is intended to help you compare the cost of investing in this variable annuity with the cost of investing in other variable annuities.
Let’s say, hypothetically, that your annual investment return is 5% and that your fees and expenses today were as high as possible.
The example illustrates the effect of fees and expenses that you could incur (other than taxes). Your actual fees and expenses may vary. For every $10,000 invested, here’s how much you would pay under each of the three scenarios posed:
(1)

(1)
If you Surrender your variable annuity at the end of the applicable time period:
 
1 year
3 years
5 years
10 years
Access
$448
$1,351
$2,263
$4,582
Core
$1,135
$2,123
$2,930
$4,948
Edge
$980
$1,845
$2,717
$4,931
Outlook
$1,167
$2,037
$2,634
$5,241
Plus
$1,254
$2,295
$3,242
$5,199
(2)
If you annuitize at the end of the applicable time period:
 
1 year
3 years
5 years
10 years
Access
$341
$1,243
$2,154
$4,471
Core
$311
$1,298
$2,287
$4,764
Edge
$806
$1,121
$1,994
$4,208
Outlook
$346
$1,401
$2,451
$5,059
Plus
$341
$1,386
$2,428
$5,017
(3)
If you do not Surrender your variable annuity:
 
1 year
3 years
5 years
10 years
Access
$448
$1,351
$2,263
$4,582
Core
$493
$1,481
$2,470
$4,948
Edge
$980
$1,845
$2,717
$4,931
Outlook
$529
$1,583
$2,634
$5,241
Plus
$524
$1,569
$2,610
$5,199

Standard Death Benefits
These versions of the Contract include a standard Death Benefit that is based on the age of the Owner(s) and Annuitant. Standard Death Benefits are at no additional cost.
If all Owner(s) and Annuitant are less than age 76 on the Contract issuance date, you can choose either the Premium Protection or the Asset Protection Death Benefit. If you do not choose a death benefit, we will automatically issue the Asset Protection


APP E-2
 
 
 

Death Benefit. If any Owner(s) or Annuitant is more than age 76 on the Contract issuance date, we will automatically issue the Asset Protection Death Benefit.
The Premium Protection Death Benefit
If applicable, your Death Benefit is the highest of:
•
Contract Value; or
•
Total Premium Payments adjusted for partial Surrenders.
If your Contract has the Premium Protection Death Benefit and you transfer ownership of your Contract to someone who was 76 years old or older at the time you purchased your Contract, the Premium Protection Death Benefit will no longer apply as of the date of transfer and the death benefit will be a return of your Contract Value. As used above, “Contract Value” refers to your Contract Value on the date we receive due proof of death.
The following are examples of how Premium Protection Death Benefit works:
Example 1
Assume that:
Ÿ You made an initial Premium Payment of $100,000,
Ÿ In your fourth Contract Year, you made a partial Surrender of $8,000,
Ÿ Your Contract Value in the fourth year immediately before your Surrender was $109,273,
Ÿ On the day we calculate the Death Benefit, your Contract Value was $117,403.
The adjustment to your total Premium Payments for partial Surrenders is on a dollar-for-dollar basis up to 10% of total Premium Payments. The partial Surrender of $8,000 is less than 10% of Premium Payments. Your adjusted total Premium Payments is $92,000.
Because your Contract Value at death was greater than the adjusted total Premium Payments, your Death Benefit is $117,403.
Example 2
Assume that:
Ÿ You made an initial Premium Payment of $100,000,
Ÿ In your fourth Contract Year, you made a partial Surrender of $60,000,
Ÿ Your Contract Value in the fourth year immediately before your Surrender was $150,000,
Ÿ On the day we calculate the Death Benefit, your Contract Value was $120,000.
The adjustments to your Premium Payments for partial Surrenders is on a dollar-for-dollar basis up to 10% of total Premium Payments. 10% of the total Premium Payments is $10,000. Total Premium Payments adjusted for dollar-for-dollar partial Surrenders is $90,000. The remaining partial Surrenders equal $50,000. This amount will reduce your total Premium Payments by a factor. To determine this factor, we take your Contract Value immediately before the Surrender [$150,000] and subtract the $10,000 dollar-for- dollar adjustment to get $140,000. The proportional factor is 1 − (50,000/140,000) = .64286. This factor is multiplied by $90,000. The result is an adjusted total Premium Payment of $57,857.
Because your Contract Value at death was greater than the adjusted total Premium Payments, your Death Benefit is $120,000.
The Asset Protection Death Benefit
If applicable, except as noted below, your Death Benefit is the highest of A, B or C, below:
A.
Contract Value; or
B.
Contract Value plus 25% of total Premium Payments adjusted for partial Surrenders (excluding Premium Payments we receive within 12 months of death); or
C.
Contract Value plus 25% of Maximum Anniversary Value.
The Asset Protection Death Benefit cannot exceed the highest of:
•
Contract Value;
•
Total Premium Payments adjusted for partial Surrenders; or
•
Maximum Anniversary Value.
All references to “Contract Value” refer to such value on the date we receive due proof of death.


APP E-3
 
 
 

The following are examples of how Asset Protection Death Benefit works:
Example 1
Assume that:
Ÿ You made an initial Premium Payment of $100,000,
Ÿ In your fourth Contract Year, you made a withdrawal of $8,000,
Ÿ Your Contract Value in your fourth Contract Year immediately before your withdrawal was $109,273,
Ÿ On the day we calculate the Death Benefit, your Contract Value was $117,403,
Ÿ Your Maximum Anniversary Value was $11,403.
To calculate the Asset Protection Death Benefit, we calculate the following three values:
Ÿ The Contract Value of your Contract on the day we calculate the Death Benefit [$117,403],
Ÿ The Contract Value of your Contract, plus 25% of the total Premium Payments you have made to us minus any Premium Payments we receive within 12 months of death and an adjustment for any partial Surrenders. [$117,403 + 25% ($100,000 − $8,000) = $140,403],
Ÿ The Contract Value of your Contract, plus 25% of Your Maximum Anniversary Value minus an adjustment for any partial Surrenders [$117,403 + 25% ($117,403 − $8,000) = $144,754], but it cannot exceed the greatest of:
Ÿ The Contract Value of your Contract on the date we calculate the Death Benefit [$117,403],
Ÿ Total Premium Payments you have made to us minus any Premium Payments we receive within 12 months of death and an adjustment for partial Surrenders [$100,000 − $8,000 = $92,000]; or
Ÿ Your Maximum Anniversary Value adjusted for any partial Surrenders [$117,403 − $8,000 = $109,403].
Because the Contract Value of your Contract [$117,403] is greater than your Maximum Anniversary Value adjusted for partial Surrenders [$109,403] and your adjusted total Premium Payments [$92,000], the amount of the Death Benefit would be your Contract Value or $117,403.
Example 2
Assume that:
Ÿ You made an initial Premium Payment of $100,000,
Ÿ In your fourth Contract Year, you made a partial Surrender of $60,000,
Ÿ Your Contract Value in the fourth year immediately before your Surrender was $150,000,
Ÿ On the day we calculate the Death Benefit, your Contract Value was $120,000,
Ÿ Your Maximum Anniversary Value is $140,000.
To calculate the Asset Protection Death Benefit, we calculate the following three values:
Ÿ The Contract Value of your Contract on the day we calculate the Death Benefit [$120,000],
Ÿ The Contract Value of your Contract, plus 25% of the total Premium Payments you have made to us minus any Premium Payments we receive within 12 months of death and an adjustment for any partial Surrenders. [$120,000 + 25% of $57,857 = $134,464 (see below)],
Ÿ The Contract Value of your Contract, plus 25% of Your Maximum Anniversary Value minus an adjustment for any partial Surrenders [$120,000 + 25% ($83,571) = $140,893 (see below)].
The Asset Protection Death Benefit is the greatest of these three values but it cannot exceed the greatest of:
Ÿ The Contract Value of your Contract on the date we calculate the Death Benefit [$120,000],



APP E-4
 
 
 

Ÿ Total Premium Payments you have made to us minus any Premium Payments we receive within 12 months of death and an adjustment for partial Surrenders [$57,857 (see below)]; or
Ÿ Your Maximum Anniversary Value adjusted for any partial Surrenders [$83,571 (see below)].
The adjustments to your Premium Payments and/or Maximum Anniversary Value for partial Surrenders is on a dollar-for-dollar basis up to 10% of total Premium Payments. 10% of the total Premium Payments is $10,000.
Total Premium Payments adjusted for dollar-for-dollar partial Surrenders is $90,000. The remaining partial Surrenders equal $50,000. This amount will reduce your total Premium Payments by a factor. To determine this factor, we take your Contract Value immediately before the Surrender [$150,000] and subtract the $10,000 dollar-for-dollar adjustment to get $140,000. The proportional factor is 1 − (50,000/140,000) = .64286. This factor is multiplied by $90,000. The result is an adjusted total Premium Payment of $57,857.
Your Maximum Anniversary Value adjusted for partial Surrenders on a dollar-for-dollar basis up to 10% of Premium Payments is $130,000. Remaining partial Surrenders are $50,000. We use this amount to reduce your Maximum Anniversary Value by a factor. To determine this factor, we take your Contract Value immediately before the Surrender [$150,000] and subtract the $10,000 dollar-for-dollar adjustment to get $140,000. The proportional factor is 1 − (50,000/140,000) = .64286. This factor is multiplied by $130,000. The result is an adjusted Maximum Anniversary Value of $83,571.
Your Asset Protection Death Benefit is $120,000. This is because your Contract Value at death [$120,000] was the greatest of:
Ÿ The Contract Value of your Contract on the date we calculate the Death Benefit [$120,000],
Ÿ Total Premium Payments you have made to us minus any Premium Payments we receive within 12 months of death and an adjustment for partial Surrenders [$57,857]; or
Ÿ Your Maximum Anniversary Value minus an adjustment for any partial Surrenders [$83,571].



APP F-1
 
 
 

Appendix F - Model Investment Options


(Percentage allocations apply to value in the Sub-Accounts)

Applicable To The Following Products

•
Leaders Edge 2, 2R & 3


As of May 2, 2016, the following models are available. If you elected one of the optional riders for your contract, please refer to “Appendix D - Optional Rider Investment Restrictions” to determine whether those restrictions may limit your ability to invest in these models.

Portfolio Planner Models

Fund
2016 Series 129
2016 Series 130
2016 Series 215
2016 Series 315
2016 Series 415
American Funds Blue Chip Income and Growth Fund
5%
7%
8%
9%
10%
American Funds Bond Fund
20%
15%
11%
9%
6%
American Funds Global Bond Fund
10%
7%
6%
4%
4%
American Funds Growth-Income Fund
3%
4%
5%
6%
7%
American Funds International Fund
3%
4%
5%
6%
7%
Franklin Large Cap Growth VIP Fund
5%
6%
7%
8%
9%
Franklin Mutual Global Discovery VIP Fund
2%
3%
4%
5%
6%
Franklin Small-Mid Cap Growth VIP Fund
2%
3%
3%
4%
5%
Invesco V.I. Government Securities Fund
25%
19%
16%
11%
8%
Invesco V.I. Small Cap Equity Fund
2%
3%
4%
5%
6%
MFS High Yield Portfolio
15%
19%
17%
16%
12%
MFS Investors Trust Series
3%
4%
5%
7%
8%
Templeton Developing Markets VIP Fund
2%
3%
4%
4%
5%
Templeton Foreign VIP Fund
3%
3%
5%
6%
7%
Total
100%
100%
100%
100%
100%




To obtain a Statement of Additional Information, please call us at 800-862-6668 or complete the form below and mail to:
Talcott Resolution Life Insurance Company/Talcott Resolution Life and Annuity Insurance Company
PO Box 14293
Lexington, KY 40512-4293
Please send a Statement of Additional Information to me at the following address:
 
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Statement of Additional Information
Talcott Resolution Life Insurance Company
Separate Account Seven
Leaders Edge Series II, IIR and III

This Statement of Additional Information is not a prospectus. The information contained in this document should be read in conjunction with the prospectus.
To obtain a prospectus, send a written request to Talcott Resolution Insurance Company, P. O. Box 14293, Lexington, KY 40512-4293.
Date of Prospectus: May 1, 2018 as amended on June 28, 2018
Date of Statement of Additional Information: May 1, 2018 as amended on June 28, 2018

Table of Contents



2
 

General Information
Safekeeping of Assets
We hold title to the assets of the Separate Account. The assets are kept physically segregated and are held separate and apart from our general corporate assets. Records are maintained of all purchases and redemptions of the underlying fund shares held in each of the Sub-Accounts.
Experts
The consolidated financial statements of Hartford Life Insurance Company as of December 31, 2017 and 2016, and for each of the three years in the period ended December 31, 2017 have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report, and the statements of assets and liabilities of each of the individual sub-accounts which comprise Hartford Life Insurance Company Separate Account Seven as of December 31, 2017, and the related statements of operations for the periods then ended, the statements of changes in net assets for each of the periods presented in the two years then ended, and the financial highlights in Note 6 for each of the periods presented in the five years then ended have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report, which reports are both included in the Statement of Additional Information which is part of 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. The principal business address of Deloitte & Touche LLP is CityPlace I, 33rd Floor, 185 Asylum Street, Hartford, Connecticut 06103-3402.
Non-Participating
The Contract is non-participating and we pay no dividends.
Misstatement of Age or Sex
If an Annuitant’s age or sex was misstated on the Contract, any Contract payments or benefits will be determined using the correct age and sex. If we have overpaid Annuity Payouts, an adjustment, including interest on the amount of the overpayment, will be made to the next Annuity Payout or Payouts. If we have underpaid due to a misstatement of age or sex, we will credit the next Annuity Payout with the amount we underpaid and credit interest.
Purchase of Securities Being Offered
The front end sales charges were waived for eligible employee business.  As a result, eligible employees were able to purchase this product at the Annuity Unit Price (Net Asset Value plus the Mortality & Expense Fee).
Individuals who were eligible were:
•
current and retired officers, directors, trustees and employees (and their families, i.e., grandparents, parents, child, spouses, brothers, sisters, grandchildren, “step” and “in-laws”) of our ultimate parent;
•
employees and registered representatives (and their families) of registered broker-dealers (or financial institutions affiliated therewith) who signed a sales agreement with us and our principal underwriter to sell the contracts.
Principal Underwriter
The Contracts, which are offered continuously, are distributed by Talcott Resolution Distribution Company, Inc. (“TDC”). TDC serves as Principal Underwriter for the securities issued with respect to the Separate Account. TDC is registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 as a Broker-Dealer and is a member of the National Association of Securities Dealers, Inc. TDC is an affiliate of ours. Both TDC and Talcott Resolution are ultimately controlled by Henry Cornell, David I. Schamis, and Robert E. Diamond. The principal business address of TDC is the same as ours.
We currently pay TDC underwriting commissions for its role as Principal Underwriter of all variable annuities associated with this Separate Account. For the past three years, the aggregate dollar amount of underwriting commissions paid to TDC in its role as Principal Underwriter has been : 2017 : $ 9,877,833 ; 2016 : $ 8,960,055 ; and 2015 : $ 8,645,937 .
OPERATIONAL RISKS
An investment in a Contract, Separate Account, or Fund can involve operational and information security risks arising from factors such as processing errors, inadequate or failed processes, failure in systems and technology, changes in personnel and errors caused by third-party service providers.  While we seek to minimize such events through controls and oversight, there may still be failures that could adversely affect us and your Contract’s Value. In addition, as the use of technology increases, we, a Contract, a Separate Account, or Fund may be more susceptible to operational risks through breaches in cybersecurity.  A breach in cybersecurity refers to both intentional and unintentional events that may cause us, a Contract, a Separate Account, or Fund to lose proprietary information, suffer data corruption, or operational capacity, and as a result, may incur regulatory


 
3

penalties, reputational damage, and additional compliance costs associated with corrected measures and/or financial loss.  In addition, cyber security breaches of a Fund’s third party service providers or issuers of securities in which the underlying Funds invest may also subject a Fund to many of the same risks associated with direct cybersecurity breaches.
Performance Related Information
The Separate Account may advertise certain performance-related information concerning the Sub-Accounts. Performance information about a Sub-Account is based on the Sub-Account’s past performance only and is no indication of future performance.

Total Return for all Sub-Accounts
When a Sub-Account advertises its standardized total return, it will usually be calculated from the later of the date of the inception of the Sub-Account or Separate Account for one, five and ten year periods or some other relevant periods if the Sub-Account has not been in existence for at least ten years. Total return is measured by comparing the value of an investment in the Sub-Account at the beginning of the relevant period to the value of the investment at the end of the period. To calculate standardized total return, we use a hypothetical initial premium payment of $1,000.00 and deduct for the Total Annual Fund Operating Expenses, any Sales Charge, Separate Account Annual Expenses without any optional charge deductions and the Annual Maintenance Fee.
The formula we use to calculate standardized total return is P(1+T)n = ERV. In this calculation, “P” represents a hypothetical initial premium payment of $1,000.00, “T” represents the average annual total return, “n” represents the number of years and “ERV” represents the redeemable value at the end of the period.
In addition to the standardized total return, the Sub-Account may advertise a non-standardized total return. These figures will usually be calculated from the later of the date of inception of the underlying fund or Separate Account for one, five and ten year periods or other relevant periods. Non-standardized total return is measured in the same manner as the standardized total return described above, except that non-standardized total return includes the impact of a minimum 1% sales charge, if applicable, and the Annual Maintenance Fee is not deducted. Therefore, non-standardized total return for a Sub-Account is higher than standardized total return for a Sub-Account.
Yield for Sub-Accounts
If applicable, the Sub-Accounts may advertise yield in addition to total return. At any time in the future, yields may be higher or lower than past yields and past performance is no indication of future performance.
The standardized yield will be computed for periods beginning with the inception of the Sub-Account in the following manner. The net investment income per Accumulation Unit earned during a one-month period is divided by the Accumulation Unit Value on the last day of the period.
The formula We use to calculate yield is: YIELD = 2[(a – b/cd +1)6 – 1]. In this calculation, “a” represents the net investment income earned during the period by the underlying fund, “b” represents the expenses accrued for the period, “c” represents the average daily number of Accumulation Units outstanding during the period and “d” represents the maximum offering price per Accumulation Unit on the last day of the period.
Money Market Sub-Accounts
At any time in the future, current and effective yields may be higher or lower than past yields and past performance is no indication of future performance.
Current yield of a money market fund Sub-Account is calculated for a seven-day period or the “base period” without taking into consideration any realized or unrealized gains or losses on shares of the underlying fund. The first step in determining yield is to compute the base period return. We take a hypothetical account with a balance of one Accumulation Unit of the Sub-Account and calculates the net change in its value from the beginning of the base period to the end of the base period. We then subtract an amount equal to the total deductions for the Contract and then divides that number by the value of the account at the beginning of the base period. The result is the base period return or “BPR.” Once the base period return is calculated, We then multiply it by 365/7 to compute the current yield. Current yield is calculated to the nearest hundredth of one percent.
The formula for this calculation is YIELD = BPR × (365/7), where BPR = (A – B)/C. “A” is equal to the net change in value of a hypothetical account with a balance of one Accumulation Unit of the Sub-Account from the beginning of the base period to the end of the base period. “B” is equal to the amount that we deduct for mortality and expense risk charge, any applicable administrative charge and the Annual Maintenance Fee. “C” represents the value of the Sub-Account at the beginning of the base period.


4
 

Effective yield is also calculated using the base period return. The effective yield is calculated by adding 1 to the base period return and raising that result to a power equal to 365 divided by 7 and subtracting 1 from the result. The calculation We use is:
EFFECTIVE YIELD = [(BASE PERIOD RETURN + 1)365/7] – 1.
Additional Materials
We may provide information on various topics to Contract Owners and prospective Contract Owners in advertising, sales literature or other materials. These topics may include the relationship between sectors of the economy and the economy as a whole and its effect on various securities markets, investment strategies and techniques (such as value investing, dollar cost averaging and asset allocation), the advantages and disadvantages of investing in tax-deferred and taxable instruments, customer profiles and hypothetical purchase scenarios, financial management and tax and retirement planning, and other investment alternatives, including comparisons between the Contracts and the characteristics of and market for any alternatives.
Performance Comparisons
Each Sub-Account may from time to time include in advertisements the ranking of its performance figures compared with performance figures of other annuity contract’s sub-accounts with the same investment objectives which are created by Lipper Analytical Services, Morningstar, Inc. or other recognized ranking services.



 
5

Accumulation Unit Values
The following information should be read in conjunction with the financial statements for the Separate Account included in this Statement of Additional Information.
There are several classes of Accumulation Unit Values under the Contract depending on the number of optional benefits you select. The tables below show all possible Accumulation Unit Values corresponding to all combinations of optional benefits. Tables showing only the highest and lowest possible Accumulation Unit Values are shown in the prospectus, which assumes you select either no optional benefits or all optional benefits.


6
 

Series II/IIR
Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Asset Allocation Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.278

$
22.402

$
22.303

$
21.364

$
17.437

$
15.150

$
15.099

$
13.549

$
11.032

$
15.800

Accumulation Unit Value at end of period
$
27.952

$
24.278

$
22.402

$
22.303

$
21.364

$
17.437

$
15.150

$
15.099

$
13.549

$
11.032

Number of Accumulation Units outstanding at end of period (in thousands)
9

9

9

24

25

51

51

49

49

52

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.517

$
21.743

$
21.691

$
20.819

$
17.026

$
14.823

$
14.803

$
13.309

$
10.859

$
15.583

Accumulation Unit Value at end of period
$
27.022

$
23.517

$
21.743

$
21.691

$
20.819

$
17.026

$
14.823

$
14.803

$
13.309

$
10.859

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

2

2

2

3

4

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.075

$
21.356

$
21.326

$
20.488

$
16.773

$
14.617

$
14.612

$
13.151

$
10.740

$
15.428

Accumulation Unit Value at end of period
$
26.487

$
23.075

$
21.356

$
21.326

$
20.488

$
16.773

$
14.617

$
14.612

$
13.151

$
10.740

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.918

$
21.221

$
21.202

$
20.380

$
16.692

$
14.554

$
14.556

$
13.107

$
10.710

$
15.392

Accumulation Unit Value at end of period
$
26.293

$
22.918

$
21.221

$
21.202

$
20.380

$
16.692

$
14.554

$
14.556

$
13.107

$
10.710

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

1

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.427

$
20.798

$
20.810

$
20.033

$
16.433

$
14.350

$
14.373

$
12.962

$
10.607

$
15.268

Accumulation Unit Value at end of period
$
25.692

$
22.427

$
20.798

$
20.810

$
20.033

$
16.433

$
14.350

$
14.373

$
12.962

$
10.607

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

2

2

2

3

3

3

3

4

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.427

$
20.798

$
20.810

$
20.033

$
16.433

$
14.350

$
14.373

$
12.962

$
10.607

$
15.268

Accumulation Unit Value at end of period
$
25.692

$
22.427

$
20.798

$
20.810

$
20.033

$
16.433

$
14.350

$
14.373

$
12.962

$
10.607

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

2

2

2

3

3

3

3

4

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.201

$
18.762

$
18.801

$
18.126

$
14.891

$
13.023

$
13.063

$
11.798

$
9.670

$
13.939

Accumulation Unit Value at end of period
$
23.107

$
20.201

$
18.762

$
18.801

$
18.126

$
14.891

$
13.023

$
13.063

$
11.798

$
9.670

Number of Accumulation Units outstanding at end of period (in thousands)
36

51

57

82

88

101

115

122

134

165

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.290

$
18.863

$
18.922

$
18.261

$
15.016

$
13.145

$
13.200

$
11.934

$
9.790

$
—

Accumulation Unit Value at end of period
$
23.186

$
20.290

$
18.863

$
18.922

$
18.261

$
15.016

$
13.145

$
13.200

$
11.934

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
916

980

1,071

1,214

1,490

2,146

2,584

3,158

3,797

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.678

$
18.303

$
18.369

$
17.736

$
14.592

$
12.781

$
12.840

$
11.614

$
9.533

$
13.763

Accumulation Unit Value at end of period
$
22.475

$
19.678

$
18.303

$
18.369

$
17.736

$
14.592

$
12.781

$
12.840

$
11.614

$
9.533

Number of Accumulation Units outstanding at end of period (in thousands)
197

228

288

353

423

627

795

1,076

1,484

1,769

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.842

$
17.570

$
17.677

$
17.111

$
14.113

$
12.392

$
12.481

$
11.317

$
9.312

$
—

Accumulation Unit Value at end of period
$
21.467

$
18.842

$
17.570

$
17.677

$
17.111

$
14.113

$
12.392

$
12.481

$
11.317

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
436

490

553

653

827

1,078

1,301

1,703

1,992

—



 
7
Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Blue Chip Income and Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.109

$
1.793

$
1.865

$
1.632

$
1.239

$
1.098

$
1.119

$
1.006

$
0.793

$
1.261

Accumulation Unit Value at end of period
$
2.445

$
2.109

$
1.793

$
1.865

$
1.632

$
1.239

$
1.098

$
1.119

$
1.006

$
0.793

Number of Accumulation Units outstanding at end of period (in thousands)
16

16

14

22

22

42

67

76

82

81

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.044

$
1.742

$
1.815

$
1.592

$
1.211

$
1.075

$
1.098

$
0.989

$
0.781

$
1.245

Accumulation Unit Value at end of period
$
2.365

$
2.044

$
1.742

$
1.815

$
1.592

$
1.211

$
1.075

$
1.098

$
0.989

$
0.781

Number of Accumulation Units outstanding at end of period (in thousands)
99

109

119

124

150

135

118

127

182

194

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.011

$
1.715

$
1.790

$
1.571

$
1.196

$
1.063

$
1.086

$
0.979

$
0.775

$
1.236

Accumulation Unit Value at end of period
$
2.324

$
2.011

$
1.715

$
1.790

$
1.571

$
1.196

$
1.063

$
1.086

$
0.979

$
0.775

Number of Accumulation Units outstanding at end of period (in thousands)
3

3

3

3

3

3

3

3

3

3

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.997

$
1.705

$
1.779

$
1.562

$
1.190

$
1.059

$
1.082

$
0.976

$
0.773

$
1.233

Accumulation Unit Value at end of period
$
2.307

$
1.997

$
1.705

$
1.779

$
1.562

$
1.190

$
1.059

$
1.082

$
0.976

$
0.773

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

64

71

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.955

$
1.671

$
1.746

$
1.536

$
1.172

$
1.044

$
1.069

$
0.965

$
0.765

$
1.223

Accumulation Unit Value at end of period
$
2.255

$
1.955

$
1.671

$
1.746

$
1.536

$
1.172

$
1.044

$
1.069

$
0.965

$
0.765

Number of Accumulation Units outstanding at end of period (in thousands)
1

2

2

6

6

7

7

6

8

46

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.955

$
1.671

$
1.746

$
1.536

$
1.172

$
1.044

$
1.069

$
0.965

$
0.765

$
1.223

Accumulation Unit Value at end of period
$
2.255

$
1.955

$
1.671

$
1.746

$
1.536

$
1.172

$
1.044

$
1.069

$
0.965

$
0.765

Number of Accumulation Units outstanding at end of period (in thousands)
1

2

2

6

6

7

7

6

8

46

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.907

$
1.632

$
1.709

$
1.505

$
1.150

$
1.026

$
1.052

$
0.952

$
0.756

$
1.209

Accumulation Unit Value at end of period
$
2.196

$
1.907

$
1.632

$
1.709

$
1.505

$
1.150

$
1.026

$
1.052

$
0.952

$
0.756

Number of Accumulation Units outstanding at end of period (in thousands)
325

297

305

318

321

331

330

345

418

529

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.877

$
1.609

$
1.686

$
1.486

$
1.137

$
1.015

$
1.042

$
0.944

$
0.750

$
—

Accumulation Unit Value at end of period
$
2.160

$
1.877

$
1.609

$
1.686

$
1.486

$
1.137

$
1.015

$
1.042

$
0.944

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
4,955

5,734

6,609

8,427

9,426

13,086

15,827

19,867

22,219

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.863

$
1.597

$
1.674

$
1.477

$
1.130

$
1.010

$
1.037

$
0.940

$
0.747

$
1.198

Accumulation Unit Value at end of period
$
2.142

$
1.863

$
1.597

$
1.674

$
1.477

$
1.130

$
1.010

$
1.037

$
0.940

$
0.747

Number of Accumulation Units outstanding at end of period (in thousands)
1,307

1,413

1,816

2,350

2,726

4,414

5,816

7,829

9,932

12,335

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.792

$
1.540

$
1.619

$
1.432

$
1.098

$
0.984

$
1.013

$
0.920

$
0.733

$
—

Accumulation Unit Value at end of period
$
2.056

$
1.792

$
1.540

$
1.619

$
1.432

$
1.098

$
0.984

$
1.013

$
0.920

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
2,199

2,634

2,890

3,507

4,071

6,007

7,915

10,548

13,640

—



8
 
Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Bond Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.763

$
17.420

$
17.538

$
16.818

$
17.353

$
16.625

$
15.818

$
15.003

$
13.450

$
14.979

Accumulation Unit Value at end of period
$
18.240

$
17.763

$
17.420

$
17.538

$
16.818

$
17.353

$
16.625

$
15.818

$
15.003

$
13.450

Number of Accumulation Units outstanding at end of period (in thousands)
7

7

8

8

8

9

13

25

26

26

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.207

$
16.908

$
17.057

$
16.389

$
16.944

$
16.266

$
15.508

$
14.737

$
13.239

$
14.773

Accumulation Unit Value at end of period
$
17.633

$
17.207

$
16.908

$
17.057

$
16.389

$
16.944

$
16.266

$
15.508

$
14.737

$
13.239

Number of Accumulation Units outstanding at end of period (in thousands)
27

31

32

34

33

29

24

25

24

21

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.883

$
16.606

$
16.769

$
16.129

$
16.692

$
16.040

$
15.308

$
14.562

$
13.094

$
14.626

Accumulation Unit Value at end of period
$
17.284

$
16.883

$
16.606

$
16.769

$
16.129

$
16.692

$
16.040

$
15.308

$
14.562

$
13.094

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.768

$
16.502

$
16.672

$
16.043

$
16.612

$
15.971

$
15.249

$
14.513

$
13.057

$
14.592

Accumulation Unit Value at end of period
$
17.158

$
16.768

$
16.502

$
16.672

$
16.043

$
16.612

$
15.971

$
15.249

$
14.513

$
13.057

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

5

2

23

23

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.409

$
16.173

$
16.364

$
15.771

$
16.354

$
15.747

$
15.058

$
14.353

$
12.932

$
14.474

Accumulation Unit Value at end of period
$
16.766

$
16.409

$
16.173

$
16.364

$
15.771

$
16.354

$
15.747

$
15.058

$
14.353

$
12.932

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

1

2

2

1

3

8

10

11

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.409

$
16.173

$
16.364

$
15.771

$
16.354

$
15.747

$
15.058

$
14.353

$
12.932

$
14.474

Accumulation Unit Value at end of period
$
16.766

$
16.409

$
16.173

$
16.364

$
15.771

$
16.354

$
15.747

$
15.058

$
14.353

$
12.932

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

1

2

2

1

3

8

10

11

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.769

$
15.565

$
15.773

$
15.224

$
15.811

$
15.246

$
14.601

$
13.938

$
12.578

$
14.098

Accumulation Unit Value at end of period
$
16.088

$
15.769

$
15.565

$
15.773

$
15.224

$
15.811

$
15.246

$
14.601

$
13.938

$
12.578

Number of Accumulation Units outstanding at end of period (in thousands)
35

33

38

40

41

50

65

66

73

74

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.944

$
14.766

$
14.978

$
14.471

$
15.044

$
14.521

$
13.920

$
13.302

$
12.015

$
—

Accumulation Unit Value at end of period
$
15.231

$
14.944

$
14.766

$
14.978

$
14.471

$
15.044

$
14.521

$
13.920

$
13.302

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,059

1,198

1,474

1,866

2,399

2,160

2,536

3,247

3,467

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.361

$
15.185

$
15.411

$
14.896

$
15.494

$
14.963

$
14.351

$
13.720

$
12.400

$
13.920

Accumulation Unit Value at end of period
$
15.647

$
15.361

$
15.185

$
15.411

$
14.896

$
15.494

$
14.963

$
14.351

$
13.720

$
12.400

Number of Accumulation Units outstanding at end of period (in thousands)
203

245

305

380

473

502

645

883

1,152

1,266

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.709

$
14.577

$
14.830

$
14.372

$
14.985

$
14.508

$
13.950

$
13.370

$
12.113

$
—

Accumulation Unit Value at end of period
$
14.946

$
14.709

$
14.577

$
14.830

$
14.372

$
14.985

$
14.508

$
13.950

$
13.370

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
452

487

578

667

782

807

1,025

1,451

1,817

—



 
9
Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Global Bond Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.098

$
12.873

$
13.547

$
13.489

$
13.978

$
13.288

$
12.833

$
12.311

$
11.330

$
11.054

Accumulation Unit Value at end of period
$
13.863

$
13.098

$
12.873

$
13.547

$
13.489

$
13.978

$
13.288

$
12.833

$
12.311

$
11.330

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

2

2

2

2

1

1

1

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.832

$
12.638

$
13.326

$
13.295

$
13.805

$
13.150

$
12.725

$
12.232

$
11.280

$
11.026

Accumulation Unit Value at end of period
$
13.555

$
12.832

$
12.638

$
13.326

$
13.295

$
13.805

$
13.150

$
12.725

$
12.232

$
11.280

Number of Accumulation Units outstanding at end of period (in thousands)
5

5

5

5

2

3

2

3

2

2

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.701

$
12.521

$
13.216

$
13.199

$
13.719

$
13.081

$
12.671

$
12.192

$
11.255

$
11.013

Accumulation Unit Value at end of period
$
13.403

$
12.701

$
12.521

$
13.216

$
13.199

$
13.719

$
13.081

$
12.671

$
12.192

$
11.255

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.637

$
12.464

$
13.162

$
13.151

$
13.676

$
13.047

$
12.644

$
12.172

$
11.242

$
11.006

Accumulation Unit Value at end of period
$
13.328

$
12.637

$
12.464

$
13.162

$
13.151

$
13.676

$
13.047

$
12.644

$
12.172

$
11.242

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

3

3

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.444

$
12.292

$
13.000

$
13.009

$
13.549

$
12.945

$
12.564

$
12.113

$
11.204

$
10.985

Accumulation Unit Value at end of period
$
13.106

$
12.444

$
12.292

$
13.000

$
13.009

$
13.549

$
12.945

$
12.564

$
12.113

$
11.204

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

7

7

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.444

$
12.292

$
13.000

$
13.009

$
13.549

$
12.945

$
12.564

$
12.113

$
11.204

$
10.985

Accumulation Unit Value at end of period
$
13.106

$
12.444

$
12.292

$
13.000

$
13.009

$
13.549

$
12.945

$
12.564

$
12.113

$
11.204

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

7

7

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.254

$
12.123

$
12.840

$
12.869

$
13.422

$
12.843

$
12.484

$
12.055

$
11.167

$
10.965

Accumulation Unit Value at end of period
$
12.886

$
12.254

$
12.123

$
12.840

$
12.869

$
13.422

$
12.843

$
12.484

$
12.055

$
11.167

Number of Accumulation Units outstanding at end of period (in thousands)
3

3

5

5

2

7

8

7

5

—

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.129

$
12.011

$
12.735

$
12.776

$
13.339

$
12.776

$
12.431

$
12.016

$
11.142

$
—

Accumulation Unit Value at end of period
$
12.742

$
12.129

$
12.011

$
12.735

$
12.776

$
13.339

$
12.776

$
12.431

$
12.016

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
315

332

395

457

536

755

967

1,131

1,193

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.067

$
11.956

$
12.683

$
12.730

$
13.297

$
12.743

$
12.405

$
11.996

$
11.129

$
10.944

Accumulation Unit Value at end of period
$
12.671

$
12.067

$
11.956

$
12.683

$
12.730

$
13.297

$
12.743

$
12.405

$
11.996

$
11.129

Number of Accumulation Units outstanding at end of period (in thousands)
31

31

36

61

72

101

126

173

216

220

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.762

$
11.683

$
12.424

$
12.501

$
13.092

$
12.577

$
12.274

$
11.899

$
11.067

$
—

Accumulation Unit Value at end of period
$
12.320

$
11.762

$
11.683

$
12.424

$
12.501

$
13.092

$
12.577

$
12.274

$
11.899

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
63

64

85

102

116

172

261

343

353

—



10
 
Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Global Growth and Income Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.812

$
14.871

$
15.217

$
14.542

$
11.981

$
10.289

$
10.917

$
9.859

$
7.124

$
12.224

Accumulation Unit Value at end of period
$
19.745

$
15.812

$
14.871

$
15.217

$
14.542

$
11.981

$
10.289

$
10.917

$
9.859

$
7.124

Number of Accumulation Units outstanding at end of period (in thousands)
3

3

3

3

3

3

3

3

3

3

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.476

$
14.584

$
14.953

$
14.319

$
11.821

$
10.171

$
10.814

$
9.786

$
7.085

$
12.182

Accumulation Unit Value at end of period
$
19.287

$
15.476

$
14.584

$
14.953

$
14.319

$
11.821

$
10.171

$
10.814

$
9.786

$
7.085

Number of Accumulation Units outstanding at end of period (in thousands)
7

8

8

9

11

11

17

20

17

16

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.311

$
14.443

$
14.823

$
14.208

$
11.741

$
10.113

$
10.763

$
9.749

$
7.065

$
12.161

Accumulation Unit Value at end of period
$
19.062

$
15.311

$
14.443

$
14.823

$
14.208

$
11.741

$
10.113

$
10.763

$
9.749

$
7.065

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.229

$
14.372

$
14.758

$
14.153

$
11.702

$
10.084

$
10.737

$
9.731

$
7.056

$
12.150

Accumulation Unit Value at end of period
$
18.950

$
15.229

$
14.372

$
14.758

$
14.153

$
11.702

$
10.084

$
10.737

$
9.731

$
7.056

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

3

3

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.985

$
14.164

$
14.566

$
13.990

$
11.584

$
9.998

$
10.661

$
9.676

$
7.027

$
12.118

Accumulation Unit Value at end of period
$
18.620

$
14.985

$
14.164

$
14.566

$
13.990

$
11.584

$
9.998

$
10.661

$
9.676

$
7.027

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

7

1

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.985

$
14.164

$
14.566

$
13.990

$
11.584

$
9.998

$
10.661

$
9.676

$
7.027

$
12.118

Accumulation Unit Value at end of period
$
18.620

$
14.985

$
14.164

$
14.566

$
13.990

$
11.584

$
9.998

$
10.661

$
9.676

$
7.027

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

7

1

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.746

$
13.958

$
14.376

$
13.828

$
11.467

$
9.912

$
10.586

$
9.622

$
6.998

$
12.087

Accumulation Unit Value at end of period
$
18.295

$
14.746

$
13.958

$
14.376

$
13.828

$
11.467

$
9.912

$
10.586

$
9.622

$
6.998

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

2

2

3

3

1

3

2

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.588

$
13.823

$
14.251

$
13.722

$
11.390

$
9.855

$
10.536

$
9.586

$
6.979

$
—

Accumulation Unit Value at end of period
$
18.081

$
14.588

$
13.823

$
14.251

$
13.722

$
11.390

$
9.855

$
10.536

$
9.586

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
456

539

624

706

870

1,333

1,758

2,202

2,372

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.510

$
13.756

$
14.189

$
13.669

$
11.352

$
9.827

$
10.511

$
9.568

$
6.969

$
12.055

Accumulation Unit Value at end of period
$
17.975

$
14.510

$
13.756

$
14.189

$
13.669

$
11.352

$
9.827

$
10.511

$
9.568

$
6.969

Number of Accumulation Units outstanding at end of period (in thousands)
62

77

83

83

81

106

153

187

242

252

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.126

$
13.425

$
13.882

$
13.407

$
11.162

$
9.687

$
10.387

$
9.479

$
6.922

$
—

Accumulation Unit Value at end of period
$
17.455

$
14.126

$
13.425

$
13.882

$
13.407

$
11.162

$
9.687

$
10.387

$
9.479

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
134

142

160

198

270

403

523

638

712

—



 
11

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Global Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.170

$
26.257

$
24.788

$
24.459

$
19.115

$
15.745

$
17.445

$
15.761

$
11.181

$
18.321

Accumulation Unit Value at end of period
$
34.080

$
26.170

$
26.257

$
24.788

$
24.459

$
19.115

$
15.745

$
17.445

$
15.761

$
11.181

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

3

3

3

6

7

8

8

8

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.350

$
25.485

$
24.107

$
23.835

$
18.664

$
15.405

$
17.103

$
15.482

$
11.005

$
18.069

Accumulation Unit Value at end of period
$
32.946

$
25.350

$
25.485

$
24.107

$
23.835

$
18.664

$
15.405

$
17.103

$
15.482

$
11.005

Number of Accumulation Units outstanding at end of period (in thousands)
5

5

6

6

7

6

7

13

14

15

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.873

$
25.030

$
23.701

$
23.457

$
18.387

$
15.191

$
16.882

$
15.297

$
10.885

$
17.890

Accumulation Unit Value at end of period
$
32.294

$
24.873

$
25.030

$
23.701

$
23.457

$
18.387

$
15.191

$
16.882

$
15.297

$
10.885

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.704

$
24.872

$
23.563

$
23.332

$
18.298

$
15.125

$
16.817

$
15.246

$
10.854

$
17.848

Accumulation Unit Value at end of period
$
32.058

$
24.704

$
24.872

$
23.563

$
23.332

$
18.298

$
15.125

$
16.817

$
15.246

$
10.854

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

7

6

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.175

$
24.377

$
23.128

$
22.936

$
18.014

$
14.913

$
16.606

$
15.078

$
10.750

$
17.704

Accumulation Unit Value at end of period
$
31.326

$
24.175

$
24.377

$
23.128

$
22.936

$
18.014

$
14.913

$
16.606

$
15.078

$
10.750

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

1

1

1

1

1

1

1

3

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.175

$
24.377

$
23.128

$
22.936

$
18.014

$
14.913

$
16.606

$
15.078

$
10.750

$
17.704

Accumulation Unit Value at end of period
$
31.326

$
24.175

$
24.377

$
23.128

$
22.936

$
18.014

$
14.913

$
16.606

$
15.078

$
10.750

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

1

1

1

1

1

1

1

3

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.897

$
24.132

$
22.931

$
22.774

$
17.914

$
14.852

$
16.564

$
15.061

$
10.755

$
17.738

Accumulation Unit Value at end of period
$
30.919

$
23.897

$
24.132

$
22.931

$
22.774

$
17.914

$
14.852

$
16.564

$
15.061

$
10.755

Number of Accumulation Units outstanding at end of period (in thousands)
11

11

11

14

18

19

19

21

24

36

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.280

$
18.479

$
17.576

$
17.474

$
13.759

$
11.418

$
12.747

$
11.602

$
8.293

$
—

Accumulation Unit Value at end of period
$
23.628

$
18.280

$
18.479

$
17.576

$
17.474

$
13.759

$
11.418

$
12.747

$
11.602

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
320

358

431

486

573

823

968

1,158

1,568

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.278

$
23.542

$
22.404

$
22.284

$
17.555

$
14.576

$
16.280

$
14.826

$
10.602

$
17.513

Accumulation Unit Value at end of period
$
30.072

$
23.278

$
23.542

$
22.404

$
22.284

$
17.555

$
14.576

$
16.280

$
14.826

$
10.602

Number of Accumulation Units outstanding at end of period (in thousands)
39

57

66

73

90

136

183

231

303

327

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.289

$
22.599

$
21.560

$
21.498

$
16.979

$
14.133

$
15.825

$
14.447

$
10.357

$
—

Accumulation Unit Value at end of period
$
28.724

$
22.289

$
22.599

$
21.560

$
21.498

$
16.979

$
14.133

$
15.825

$
14.447

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
81

95

107

132

169

248

318

402

504

—



 
12

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Global Small Capitalization Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.562

$
26.264

$
26.445

$
26.142

$
20.574

$
17.575

$
21.944

$
18.097

$
11.327

$
24.603

Accumulation Unit Value at end of period
$
33.124

$
26.562

$
26.264

$
26.445

$
26.142

$
20.574

$
17.575

$
21.944

$
18.097

$
11.327

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

2

2

2

4

5

5

5

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.729

$
25.492

$
25.719

$
25.475

$
20.089

$
17.195

$
21.513

$
17.777

$
11.149

$
24.265

Accumulation Unit Value at end of period
$
32.022

$
25.729

$
25.492

$
25.719

$
25.475

$
20.089

$
17.195

$
21.513

$
17.777

$
11.149

Number of Accumulation Units outstanding at end of period (in thousands)
1

2

2

2

2

2

3

2

1

1

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.245

$
25.038

$
25.285

$
25.071

$
19.790

$
16.957

$
21.236

$
17.565

$
11.027

$
24.024

Accumulation Unit Value at end of period
$
31.388

$
25.245

$
25.038

$
25.285

$
25.071

$
19.790

$
16.957

$
21.236

$
17.565

$
11.027

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.073

$
24.879

$
25.138

$
24.938

$
19.695

$
16.883

$
21.154

$
17.507

$
10.996

$
23.968

Accumulation Unit Value at end of period
$
31.158

$
25.073

$
24.879

$
25.138

$
24.938

$
19.695

$
16.883

$
21.154

$
17.507

$
10.996

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.537

$
24.384

$
24.674

$
24.514

$
19.389

$
16.646

$
20.889

$
17.313

$
10.890

$
23.774

Accumulation Unit Value at end of period
$
30.446

$
24.537

$
24.384

$
24.674

$
24.514

$
19.389

$
16.646

$
20.889

$
17.313

$
10.890

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

1

1

1

5

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.537

$
24.384

$
24.674

$
24.514

$
19.389

$
16.646

$
20.889

$
17.313

$
10.890

$
23.774

Accumulation Unit Value at end of period
$
30.446

$
24.537

$
24.384

$
24.674

$
24.514

$
19.389

$
16.646

$
20.889

$
17.313

$
10.890

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

1

1

1

5

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.539

$
25.417

$
25.759

$
25.630

$
20.302

$
17.456

$
21.938

$
18.210

$
11.472

$
25.081

Accumulation Unit Value at end of period
$
31.642

$
25.539

$
25.417

$
25.759

$
25.630

$
20.302

$
17.456

$
21.938

$
18.210

$
11.472

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

3

2

3

5

7

8

15

16

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.584

$
18.514

$
18.781

$
18.706

$
14.832

$
12.766

$
16.060

$
13.344

$
8.415

$
—

Accumulation Unit Value at end of period
$
23.001

$
18.584

$
18.514

$
18.781

$
18.706

$
14.832

$
12.766

$
16.060

$
13.344

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
188

227

288

342

423

448

557

801

935

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.877

$
24.796

$
25.167

$
25.079

$
19.895

$
17.132

$
21.563

$
17.925

$
11.309

$
24.763

Accumulation Unit Value at end of period
$
30.775

$
24.877

$
24.796

$
25.167

$
25.079

$
19.895

$
17.132

$
21.563

$
17.925

$
11.309

Number of Accumulation Units outstanding at end of period (in thousands)
22

26

29

36

42

40

69

96

129

150

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.821

$
23.802

$
24.219

$
24.195

$
19.242

$
16.611

$
20.959

$
17.467

$
11.048

$
—

Accumulation Unit Value at end of period
$
29.395

$
23.821

$
23.802

$
24.219

$
24.195

$
19.242

$
16.611

$
20.959

$
17.467

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
82

83

102

119

142

176

228

318

372

—



 
13

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.055

$
24.947

$
23.568

$
21.928

$
17.015

$
14.571

$
15.367

$
13.072

$
9.466

$
17.056

Accumulation Unit Value at end of period
$
34.382

$
27.055

$
24.947

$
23.568

$
21.928

$
17.015

$
14.571

$
15.367

$
13.072

$
9.466

Number of Accumulation Units outstanding at end of period (in thousands)
17

18

20

20

20

25

28

34

42

36

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.207

$
24.213

$
22.921

$
21.368

$
16.614

$
14.256

$
15.065

$
12.840

$
9.317

$
16.821

Accumulation Unit Value at end of period
$
33.237

$
26.207

$
24.213

$
22.921

$
21.368

$
16.614

$
14.256

$
15.065

$
12.840

$
9.317

Number of Accumulation Units outstanding at end of period (in thousands)
13

16

17

18

19

22

23

22

22

23

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.714

$
23.781

$
22.535

$
21.029

$
16.367

$
14.057

$
14.870

$
12.687

$
9.215

$
16.654

Accumulation Unit Value at end of period
$
32.579

$
25.714

$
23.781

$
22.535

$
21.029

$
16.367

$
14.057

$
14.870

$
12.687

$
9.215

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.539

$
23.631

$
22.404

$
20.917

$
16.288

$
13.997

$
14.813

$
12.645

$
9.189

$
16.615

Accumulation Unit Value at end of period
$
32.341

$
25.539

$
23.631

$
22.404

$
20.917

$
16.288

$
13.997

$
14.813

$
12.645

$
9.189

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

3

5

8

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.993

$
23.160

$
21.990

$
20.562

$
16.035

$
13.800

$
14.628

$
12.505

$
9.101

$
16.481

Accumulation Unit Value at end of period
$
31.602

$
24.993

$
23.160

$
21.990

$
20.562

$
16.035

$
13.800

$
14.628

$
12.505

$
9.101

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

2

2

2

3

4

5

26

29

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.993

$
23.160

$
21.990

$
20.562

$
16.035

$
13.800

$
14.628

$
12.505

$
9.101

$
16.481

Accumulation Unit Value at end of period
$
31.602

$
24.993

$
23.160

$
21.990

$
20.562

$
16.035

$
13.800

$
14.628

$
12.505

$
9.101

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

2

2

2

3

4

5

26

29

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.620

$
21.921

$
20.845

$
19.521

$
15.246

$
13.141

$
13.949

$
11.943

$
8.705

$
15.788

Accumulation Unit Value at end of period
$
29.822

$
23.620

$
21.921

$
20.845

$
19.521

$
15.246

$
13.141

$
13.949

$
11.943

$
8.705

Number of Accumulation Units outstanding at end of period (in thousands)
58

93

102

114

120

141

170

194

214

269

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.187

$
15.038

$
14.314

$
13.418

$
10.490

$
9.051

$
9.617

$
8.242

$
6.013

$
—

Accumulation Unit Value at end of period
$
20.417

$
16.187

$
15.038

$
14.314

$
13.418

$
10.490

$
9.051

$
9.617

$
8.242

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
2,220

2,661

3,187

3,880

5,007

7,005

8,902

11,826

13,714

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.008

$
21.385

$
20.366

$
19.100

$
14.940

$
12.896

$
13.711

$
11.756

$
8.582

$
15.587

Accumulation Unit Value at end of period
$
29.006

$
23.008

$
21.385

$
20.366

$
19.100

$
14.940

$
12.896

$
13.711

$
11.756

$
8.582

Number of Accumulation Units outstanding at end of period (in thousands)
357

436

524

646

784

1,081

1,372

1,922

2,711

3,224

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.031

$
20.529

$
19.599

$
18.427

$
14.450

$
12.504

$
13.327

$
11.456

$
8.383

$
—

Accumulation Unit Value at end of period
$
27.705

$
22.031

$
20.529

$
19.599

$
18.427

$
14.450

$
12.504

$
13.327

$
11.456

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
821

933

1,093

1,263

1,533

2,068

2,822

3,820

5,053

—



 
14

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Growth-Income Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.908

$
24.359

$
24.238

$
22.118

$
16.726

$
14.373

$
14.780

$
13.391

$
10.301

$
16.732

Accumulation Unit Value at end of period
$
32.619

$
26.908

$
24.359

$
24.238

$
22.118

$
16.726

$
14.373

$
14.780

$
13.391

$
10.301

Number of Accumulation Units outstanding at end of period (in thousands)
15

16

18

19

19

28

36

48

49

54

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.065

$
23.642

$
23.573

$
21.553

$
16.331

$
14.062

$
14.490

$
13.154

$
10.139

$
16.502

Accumulation Unit Value at end of period
$
31.534

$
26.065

$
23.642

$
23.573

$
21.553

$
16.331

$
14.062

$
14.490

$
13.154

$
10.139

Number of Accumulation Units outstanding at end of period (in thousands)
3

5

6

6

7

11

13

17

19

19

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.574

$
23.221

$
23.176

$
21.211

$
16.089

$
13.867

$
14.303

$
12.998

$
10.028

$
16.338

Accumulation Unit Value at end of period
$
30.910

$
25.574

$
23.221

$
23.176

$
21.211

$
16.089

$
13.867

$
14.303

$
12.998

$
10.028

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

1

1

1

1

1

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.400

$
23.074

$
23.041

$
21.099

$
16.011

$
13.807

$
14.248

$
12.954

$
10.000

$
16.300

Accumulation Unit Value at end of period
$
30.684

$
25.400

$
23.074

$
23.041

$
21.099

$
16.011

$
13.807

$
14.248

$
12.954

$
10.000

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

4

4

11

12

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.857

$
22.614

$
22.616

$
20.740

$
15.763

$
13.613

$
14.069

$
12.811

$
9.904

$
16.168

Accumulation Unit Value at end of period
$
29.982

$
24.857

$
22.614

$
22.616

$
20.740

$
15.763

$
13.613

$
14.069

$
12.811

$
9.904

Number of Accumulation Units outstanding at end of period (in thousands)
4

5

5

6

6

8

8

12

18

26

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.857

$
22.614

$
22.616

$
20.740

$
15.763

$
13.613

$
14.069

$
12.811

$
9.904

$
16.168

Accumulation Unit Value at end of period
$
29.982

$
24.857

$
22.614

$
22.616

$
20.740

$
15.763

$
13.613

$
14.069

$
12.811

$
9.904

Number of Accumulation Units outstanding at end of period (in thousands)
4

5

5

6

6

8

8

12

18

26

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.709

$
19.780

$
19.811

$
18.195

$
13.849

$
11.978

$
12.399

$
11.306

$
8.754

$
14.312

Accumulation Unit Value at end of period
$
26.146

$
21.709

$
19.780

$
19.811

$
18.195

$
13.849

$
11.978

$
12.399

$
11.306

$
8.754

Number of Accumulation Units outstanding at end of period (in thousands)
106

142

150

161

172

191

222

254

282

346

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.621

$
19.720

$
19.771

$
18.177

$
13.849

$
11.990

$
12.423

$
11.340

$
8.789

$
—

Accumulation Unit Value at end of period
$
26.015

$
21.621

$
19.720

$
19.771

$
18.177

$
13.849

$
11.990

$
12.423

$
11.340

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,473

1,737

2,083

2,556

3,284

4,680

5,874

7,413

8,699

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.146

$
19.296

$
19.355

$
17.804

$
13.571

$
11.756

$
12.186

$
11.130

$
8.630

$
14.131

Accumulation Unit Value at end of period
$
25.430

$
21.146

$
19.296

$
19.355

$
17.804

$
13.571

$
11.756

$
12.186

$
11.130

$
8.630

Number of Accumulation Units outstanding at end of period (in thousands)
345

423

554

716

867

1,168

1,503

2,007

2,898

3,344

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.248

$
18.523

$
18.627

$
17.176

$
13.126

$
11.398

$
11.845

$
10.845

$
8.431

$
—

Accumulation Unit Value at end of period
$
24.290

$
20.248

$
18.523

$
18.627

$
17.176

$
13.126

$
11.398

$
11.845

$
10.845

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
826

938

1,062

1,265

1,580

2,125

2,811

3,730

4,797

—



 
15

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds International Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.375

$
17.917

$
18.946

$
19.648

$
16.307

$
13.963

$
16.384

$
15.425

$
10.884

$
18.985

Accumulation Unit Value at end of period
$
24.052

$
18.375

$
17.917

$
18.946

$
19.648

$
16.307

$
13.963

$
16.384

$
15.425

$
10.884

Number of Accumulation Units outstanding at end of period (in thousands)
—

1

1

1

1

2

2

2

2

4

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.799

$
17.390

$
18.425

$
19.147

$
15.923

$
13.661

$
16.062

$
15.152

$
10.713

$
18.724

Accumulation Unit Value at end of period
$
23.251

$
17.799

$
17.390

$
18.425

$
19.147

$
15.923

$
13.661

$
16.062

$
15.152

$
10.713

Number of Accumulation Units outstanding at end of period (in thousands)
11

14

15

14

14

17

14

11

13

14

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.464

$
17.080

$
18.115

$
18.843

$
15.686

$
13.471

$
15.855

$
14.971

$
10.596

$
18.538

Accumulation Unit Value at end of period
$
22.791

$
17.464

$
17.080

$
18.115

$
18.843

$
15.686

$
13.471

$
15.855

$
14.971

$
10.596

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.345

$
16.972

$
18.010

$
18.743

$
15.611

$
13.413

$
15.794

$
14.921

$
10.566

$
18.495

Accumulation Unit Value at end of period
$
22.625

$
17.345

$
16.972

$
18.010

$
18.743

$
15.611

$
13.413

$
15.794

$
14.921

$
10.566

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

3

4

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.974

$
16.634

$
17.677

$
18.424

$
15.368

$
13.225

$
15.596

$
14.756

$
10.464

$
18.345

Accumulation Unit Value at end of period
$
22.107

$
16.974

$
16.634

$
17.677

$
18.424

$
15.368

$
13.225

$
15.596

$
14.756

$
10.464

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

1

1

1

2

4

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.974

$
16.634

$
17.677

$
18.424

$
15.368

$
13.225

$
15.596

$
14.756

$
10.464

$
18.345

Accumulation Unit Value at end of period
$
22.107

$
16.974

$
16.634

$
17.677

$
18.424

$
15.368

$
13.225

$
15.596

$
14.756

$
10.464

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

1

1

1

2

4

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.519

$
17.195

$
18.300

$
19.102

$
15.958

$
13.753

$
16.243

$
15.391

$
10.931

$
19.192

Accumulation Unit Value at end of period
$
22.784

$
17.519

$
17.195

$
18.300

$
19.102

$
15.958

$
13.753

$
16.243

$
15.391

$
10.931

Number of Accumulation Units outstanding at end of period (in thousands)
6

7

12

23

26

35

45

60

67

104

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.162

$
12.931

$
13.776

$
14.394

$
12.037

$
10.384

$
12.276

$
11.644

$
8.278

$
—

Accumulation Unit Value at end of period
$
17.100

$
13.162

$
12.931

$
13.776

$
14.394

$
12.037

$
10.384

$
12.276

$
11.644

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
628

703

844

1,001

1,243

1,497

1,819

2,259

2,607

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.065

$
16.774

$
17.880

$
18.691

$
15.638

$
13.497

$
15.965

$
15.151

$
10.776

$
18.949

Accumulation Unit Value at end of period
$
22.160

$
17.065

$
16.774

$
17.880

$
18.691

$
15.638

$
13.497

$
15.965

$
15.151

$
10.776

Number of Accumulation Units outstanding at end of period (in thousands)
48

58

73

91

109

133

188

237

411

506

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.341

$
16.102

$
17.206

$
18.033

$
15.124

$
13.086

$
15.518

$
14.764

$
10.527

$
—

Accumulation Unit Value at end of period
$
21.166

$
16.341

$
16.102

$
17.206

$
18.033

$
15.124

$
13.086

$
15.518

$
14.764

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
203

231

258

304

351

496

640

810

993

—




 
16

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds New World Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.971

$
29.705

$
30.962

$
33.928

$
30.753

$
26.350

$
30.914

$
26.476

$
17.861

$
31.291

Accumulation Unit Value at end of period
$
39.711

$
30.971

$
29.705

$
30.962

$
33.928

$
30.753

$
26.350

$
30.914

$
26.476

$
17.861

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.001

$
28.832

$
30.112

$
33.063

$
30.029

$
25.781

$
30.307

$
26.008

$
17.580

$
30.861

Accumulation Unit Value at end of period
$
38.390

$
30.001

$
28.832

$
30.112

$
33.063

$
30.029

$
25.781

$
30.307

$
26.008

$
17.580

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

2

4

4

2

2

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
29.436

$
28.318

$
29.605

$
32.538

$
29.582

$
25.423

$
29.916

$
25.698

$
17.388

$
30.554

Accumulation Unit Value at end of period
$
37.630

$
29.436

$
28.318

$
29.605

$
32.538

$
29.582

$
25.423

$
29.916

$
25.698

$
17.388

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
29.236

$
28.139

$
29.433

$
32.365

$
29.439

$
25.313

$
29.801

$
25.613

$
17.339

$
30.483

Accumulation Unit Value at end of period
$
37.355

$
29.236

$
28.139

$
29.433

$
32.365

$
29.439

$
25.313

$
29.801

$
25.613

$
17.339

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.610

$
27.578

$
28.889

$
31.816

$
28.983

$
24.958

$
29.427

$
25.329

$
17.173

$
30.237

Accumulation Unit Value at end of period
$
36.501

$
28.610

$
27.578

$
28.889

$
31.816

$
28.983

$
24.958

$
29.427

$
25.329

$
17.173

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

1

1

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.610

$
27.578

$
28.889

$
31.816

$
28.983

$
24.958

$
29.427

$
25.329

$
17.173

$
30.237

Accumulation Unit Value at end of period
$
36.501

$
28.610

$
27.578

$
28.889

$
31.816

$
28.983

$
24.958

$
29.427

$
25.329

$
17.173

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

1

1

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.498

$
25.581

$
26.837

$
29.600

$
27.005

$
23.290

$
27.501

$
23.707

$
16.097

$
28.385

Accumulation Unit Value at end of period
$
33.756

$
26.498

$
25.581

$
26.837

$
29.600

$
27.005

$
23.290

$
27.501

$
23.707

$
16.097

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

1

1

6

6

11

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.609

$
23.780

$
24.973

$
27.572

$
25.180

$
21.737

$
25.694

$
22.171

$
15.069

$
—

Accumulation Unit Value at end of period
$
31.318

$
24.609

$
23.780

$
24.973

$
27.572

$
25.180

$
21.737

$
25.694

$
22.171

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
166

174

200

257

306

393

507

699

716

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.812

$
24.955

$
26.220

$
28.963

$
26.463

$
22.857

$
27.031

$
23.337

$
15.869

$
28.026

Accumulation Unit Value at end of period
$
32.832

$
25.812

$
24.955

$
26.220

$
28.963

$
26.463

$
22.857

$
27.031

$
23.337

$
15.869

Number of Accumulation Units outstanding at end of period (in thousands)
14

15

21

27

36

49

67

104

165

176

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.716

$
23.956

$
25.233

$
27.942

$
25.595

$
22.162

$
26.275

$
22.740

$
15.502

$
—

Accumulation Unit Value at end of period
$
31.360

$
24.716

$
23.956

$
25.233

$
27.942

$
25.595

$
22.162

$
26.275

$
22.740

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
60

61

77

99

111

162

215

303

333

—



 
17

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Fidelity VIP Dynamic Capital Appreciation Portfolio (a)
 
 
 
 
 
 
 
 
 
 
With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
21.567

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
21.356

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
2

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
34.125

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.431

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.331

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.837

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
4

—

—

—

—

—

—

—

—

—



 
18

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Flex Cap Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.509

$
18.202

$
17.607

$
16.752

$
12.301

$
11.366

$
12.053

$
10.472

$
7.951

$
12.409

Accumulation Unit Value at end of period
$
22.016

$
17.509

$
18.202

$
17.607

$
16.752

$
12.301

$
11.366

$
12.053

$
10.472

$
7.951

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.100

$
17.812

$
17.264

$
16.459

$
12.110

$
11.211

$
11.913

$
10.372

$
7.890

$
12.339

Accumulation Unit Value at end of period
$
21.458

$
17.100

$
17.812

$
17.264

$
16.459

$
12.110

$
11.211

$
11.913

$
10.372

$
7.890

Number of Accumulation Units outstanding at end of period (in thousands)
—

1

1

1

2

1

1

1

1

1

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.898

$
17.620

$
17.095

$
16.314

$
12.016

$
11.135

$
11.844

$
10.322

$
7.860

$
12.304

Accumulation Unit Value at end of period
$
21.185

$
16.898

$
17.620

$
17.095

$
16.314

$
12.016

$
11.135

$
11.844

$
10.322

$
7.860

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.799

$
17.525

$
17.011

$
16.242

$
11.969

$
11.097

$
11.810

$
10.297

$
7.845

$
12.286

Accumulation Unit Value at end of period
$
21.049

$
16.799

$
17.525

$
17.011

$
16.242

$
11.969

$
11.097

$
11.810

$
10.297

$
7.845

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

1

1

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.503

$
17.242

$
16.762

$
16.028

$
11.829

$
10.984

$
11.707

$
10.222

$
7.800

$
12.234

Accumulation Unit Value at end of period
$
20.648

$
16.503

$
17.242

$
16.762

$
16.028

$
11.829

$
10.984

$
11.707

$
10.222

$
7.800

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

1

5

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.503

$
17.242

$
16.762

$
16.028

$
11.829

$
10.984

$
11.707

$
10.222

$
7.800

$
12.234

Accumulation Unit Value at end of period
$
20.648

$
16.503

$
17.242

$
16.762

$
16.028

$
11.829

$
10.984

$
11.707

$
10.222

$
7.800

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

1

5

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.213

$
16.964

$
16.517

$
15.817

$
11.690

$
10.872

$
11.605

$
10.148

$
7.755

$
12.182

Accumulation Unit Value at end of period
$
20.254

$
16.213

$
16.964

$
16.517

$
15.817

$
11.690

$
10.872

$
11.605

$
10.148

$
7.755

Number of Accumulation Units outstanding at end of period (in thousands)
—

1

2

1

1

1

1

1

—

—

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.022

$
16.781

$
16.355

$
15.678

$
11.599

$
10.798

$
11.537

$
10.099

$
7.725

$
—

Accumulation Unit Value at end of period
$
19.995

$
16.022

$
16.781

$
16.355

$
15.678

$
11.599

$
10.798

$
11.537

$
10.099

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
69

85

92

118

148

198

231

309

341

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.927

$
16.690

$
16.275

$
15.609

$
11.554

$
10.761

$
11.503

$
10.075

$
7.711

$
12.131

Accumulation Unit Value at end of period
$
19.868

$
15.927

$
16.690

$
16.275

$
15.609

$
11.554

$
10.761

$
11.503

$
10.075

$
7.711

Number of Accumulation Units outstanding at end of period (in thousands)
11

12

14

15

16

32

79

67

80

81

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.463

$
16.244

$
15.879

$
15.268

$
11.330

$
10.578

$
11.337

$
9.954

$
7.637

$
—

Accumulation Unit Value at end of period
$
19.240

$
15.463

$
16.244

$
15.879

$
15.268

$
11.330

$
10.578

$
11.337

$
9.954

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
15

18

23

25

31

35

48

111

123

—



 
19

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Income VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.759

$
21.036

$
22.849

$
22.049

$
19.536

$
17.507

$
17.263

$
15.468

$
11.516

$
16.527

Accumulation Unit Value at end of period
$
25.811

$
23.759

$
21.036

$
22.849

$
22.049

$
19.536

$
17.507

$
17.263

$
15.468

$
11.516

Number of Accumulation Units outstanding at end of period (in thousands)
9

9

13

13

14

16

16

20

20

20

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.073

$
20.469

$
22.277

$
21.541

$
19.124

$
17.172

$
16.966

$
15.232

$
11.363

$
16.341

Accumulation Unit Value at end of period
$
25.015

$
23.073

$
20.469

$
22.277

$
21.541

$
19.124

$
17.172

$
16.966

$
15.232

$
11.363

Number of Accumulation Units outstanding at end of period (in thousands)
2

3

3

4

4

6

9

13

13

13

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.725

$
20.181

$
21.986

$
21.280

$
18.911

$
16.998

$
16.811

$
15.108

$
11.282

$
16.241

Accumulation Unit Value at end of period
$
24.614

$
22.725

$
20.181

$
21.986

$
21.280

$
18.911

$
16.998

$
16.811

$
15.108

$
11.282

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

1

1

1

1

1

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.570

$
20.054

$
21.858

$
21.167

$
18.820

$
16.925

$
16.747

$
15.058

$
11.250

$
16.203

Accumulation Unit Value at end of period
$
24.434

$
22.570

$
20.054

$
21.858

$
21.167

$
18.820

$
16.925

$
16.747

$
15.058

$
11.250

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

5

5

1

1

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.088

$
19.654

$
21.455

$
20.808

$
18.528

$
16.687

$
16.537

$
14.891

$
11.143

$
16.072

Accumulation Unit Value at end of period
$
23.875

$
22.088

$
19.654

$
21.455

$
20.808

$
18.528

$
16.687

$
16.537

$
14.891

$
11.143

Number of Accumulation Units outstanding at end of period (in thousands)
2

2

2

2

2

4

5

5

12

9

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.088

$
19.654

$
21.455

$
20.808

$
18.528

$
16.687

$
16.537

$
14.891

$
11.143

$
16.072

Accumulation Unit Value at end of period
$
23.875

$
22.088

$
19.654

$
21.455

$
20.808

$
18.528

$
16.687

$
16.537

$
14.891

$
11.143

Number of Accumulation Units outstanding at end of period (in thousands)
2

2

2

2

2

4

5

5

12

9

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.599

$
19.248

$
21.043

$
20.439

$
18.227

$
16.441

$
16.317

$
14.715

$
11.027

$
15.930

Accumulation Unit Value at end of period
$
23.312

$
21.599

$
19.248

$
21.043

$
20.439

$
18.227

$
16.441

$
16.317

$
14.715

$
11.027

Number of Accumulation Units outstanding at end of period (in thousands)
12

15

16

17

20

22

29

20

23

31

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.284

$
18.987

$
20.778

$
20.202

$
18.034

$
16.283

$
16.176

$
14.603

$
10.954

$
—

Accumulation Unit Value at end of period
$
22.950

$
21.284

$
18.987

$
20.778

$
20.202

$
18.034

$
16.283

$
16.176

$
14.603

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,788

2,072

2,472

3,034

3,644

5,168

6,377

8,173

9,604

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.129

$
18.857

$
20.647

$
20.084

$
17.938

$
16.204

$
16.106

$
14.547

$
10.918

$
15.795

Accumulation Unit Value at end of period
$
22.771

$
21.129

$
18.857

$
20.647

$
20.084

$
17.938

$
16.204

$
16.106

$
14.547

$
10.918

Number of Accumulation Units outstanding at end of period (in thousands)
224

296

355

432

523

719

920

1,200

1,620

1,946

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.368

$
18.224

$
20.003

$
19.507

$
17.466

$
15.817

$
15.761

$
14.271

$
10.737

$
—

Accumulation Unit Value at end of period
$
21.896

$
20.368

$
18.224

$
20.003

$
19.507

$
17.466

$
15.817

$
15.761

$
14.271

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
533

614

732

867

1,049

1,433

1,907

2,351

2,825

—



 
20

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Large Cap Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.686

$
19.209

$
18.360

$
16.481

$
12.935

$
11.620

$
11.911

$
10.776

$
8.385

$
12.930

Accumulation Unit Value at end of period
$
23.712

$
18.686

$
19.209

$
18.360

$
16.481

$
12.935

$
11.620

$
11.911

$
10.776

$
8.385

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.146

$
18.691

$
17.900

$
16.101

$
12.661

$
11.398

$
11.706

$
10.611

$
8.274

$
12.784

Accumulation Unit Value at end of period
$
22.980

$
18.146

$
18.691

$
17.900

$
16.101

$
12.661

$
11.398

$
11.706

$
10.611

$
8.274

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

3

3

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.872

$
18.427

$
17.666

$
15.906

$
12.521

$
11.282

$
11.599

$
10.525

$
8.215

$
12.705

Accumulation Unit Value at end of period
$
22.611

$
17.872

$
18.427

$
17.666

$
15.906

$
12.521

$
11.282

$
11.599

$
10.525

$
8.215

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.751

$
18.311

$
17.563

$
15.821

$
12.460

$
11.234

$
11.555

$
10.490

$
8.192

$
12.676

Accumulation Unit Value at end of period
$
22.446

$
17.751

$
18.311

$
17.563

$
15.821

$
12.460

$
11.234

$
11.555

$
10.490

$
8.192

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.371

$
17.946

$
17.239

$
15.553

$
12.267

$
11.076

$
11.410

$
10.374

$
8.113

$
12.573

Accumulation Unit Value at end of period
$
21.933

$
17.371

$
17.946

$
17.239

$
15.553

$
12.267

$
11.076

$
11.410

$
10.374

$
8.113

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.371

$
17.946

$
17.239

$
15.553

$
12.267

$
11.076

$
11.410

$
10.374

$
8.113

$
12.573

Accumulation Unit Value at end of period
$
21.933

$
17.371

$
17.946

$
17.239

$
15.553

$
12.267

$
11.076

$
11.410

$
10.374

$
8.113

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.986

$
17.575

$
16.908

$
15.277

$
12.068

$
10.912

$
11.258

$
10.251

$
8.029

$
12.462

Accumulation Unit Value at end of period
$
21.415

$
16.986

$
17.575

$
16.908

$
15.277

$
12.068

$
10.912

$
11.258

$
10.251

$
8.029

Number of Accumulation Units outstanding at end of period (in thousands)
4

4

4

3

1

2

3

3

2

2

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.739

$
17.337

$
16.695

$
15.100

$
11.940

$
10.807

$
11.161

$
10.173

$
7.976

$
—

Accumulation Unit Value at end of period
$
21.082

$
16.739

$
17.337

$
16.695

$
15.100

$
11.940

$
10.807

$
11.161

$
10.173

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
156

171

190

263

291

390

508

692

812

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.616

$
17.218

$
16.589

$
15.012

$
11.876

$
10.755

$
11.112

$
10.134

$
7.949

$
12.356

Accumulation Unit Value at end of period
$
20.918

$
16.616

$
17.218

$
16.589

$
15.012

$
11.876

$
10.755

$
11.112

$
10.134

$
7.949

Number of Accumulation Units outstanding at end of period (in thousands)
11

11

20

21

18

24

33

50

69

86

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.018

$
16.640

$
16.072

$
14.580

$
11.563

$
10.498

$
10.874

$
9.941

$
7.818

$
—

Accumulation Unit Value at end of period
$
20.114

$
16.018

$
16.640

$
16.072

$
14.580

$
11.563

$
10.498

$
10.874

$
9.941

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
53

52

71

87

102

147

212

301

332

—




 
21

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Mutual Global Discovery VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
32.926

$
29.632

$
31.048

$
29.652

$
23.457

$
20.890

$
21.733

$
19.597

$
16.043

$
22.638

Accumulation Unit Value at end of period
$
35.418

$
32.926

$
29.632

$
31.048

$
29.652

$
23.457

$
20.890

$
21.733

$
19.597

$
16.043

Number of Accumulation Units outstanding at end of period (in thousands)
2

2

2

2

3

3

3

6

6

6

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
32.038

$
28.891

$
30.332

$
29.026

$
23.008

$
20.531

$
21.402

$
19.337

$
15.862

$
22.428

Accumulation Unit Value at end of period
$
34.394

$
32.038

$
28.891

$
30.332

$
29.026

$
23.008

$
20.531

$
21.402

$
19.337

$
15.862

Number of Accumulation Units outstanding at end of period (in thousands)
6

6

6

6

6

6

6

6

4

3

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
31.603

$
28.527

$
29.980

$
28.718

$
22.786

$
20.354

$
21.239

$
19.209

$
15.773

$
22.324

Accumulation Unit Value at end of period
$
33.894

$
31.603

$
28.527

$
29.980

$
28.718

$
22.786

$
20.354

$
21.239

$
19.209

$
15.773

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
31.388

$
28.347

$
29.806

$
28.565

$
22.676

$
20.266

$
21.157

$
19.145

$
15.728

$
22.272

Accumulation Unit Value at end of period
$
33.646

$
31.388

$
28.347

$
29.806

$
28.565

$
22.676

$
20.266

$
21.157

$
19.145

$
15.728

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

1

1

3

4

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.750

$
27.813

$
29.288

$
28.112

$
22.350

$
20.004

$
20.915

$
18.954

$
15.595

$
22.116

Accumulation Unit Value at end of period
$
32.914

$
30.750

$
27.813

$
29.288

$
28.112

$
22.350

$
20.004

$
20.915

$
18.954

$
15.595

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

6

6

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.750

$
27.813

$
29.288

$
28.112

$
22.350

$
20.004

$
20.915

$
18.954

$
15.595

$
22.116

Accumulation Unit Value at end of period
$
32.914

$
30.750

$
27.813

$
29.288

$
28.112

$
22.350

$
20.004

$
20.915

$
18.954

$
15.595

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

6

6

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.126

$
27.290

$
28.780

$
27.665

$
22.028

$
19.746

$
20.676

$
18.766

$
15.463

$
21.962

Accumulation Unit Value at end of period
$
32.197

$
30.126

$
27.290

$
28.780

$
27.665

$
22.028

$
19.746

$
20.676

$
18.766

$
15.463

Number of Accumulation Units outstanding at end of period (in thousands)
3

3

6

7

8

8

10

10

13

16

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
29.717

$
26.946

$
28.446

$
27.372

$
21.816

$
19.575

$
20.518

$
18.641

$
15.375

$
—

Accumulation Unit Value at end of period
$
31.729

$
29.717

$
26.946

$
28.446

$
27.372

$
21.816

$
19.575

$
20.518

$
18.641

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
315

362

445

525

673

900

1,084

1,349

1,477

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
29.515

$
26.776

$
28.281

$
27.226

$
21.711

$
19.490

$
20.440

$
18.579

$
15.332

$
21.808

Accumulation Unit Value at end of period
$
31.497

$
29.515

$
26.776

$
28.281

$
27.226

$
21.711

$
19.490

$
20.440

$
18.579

$
15.332

Number of Accumulation Units outstanding at end of period (in thousands)
46

50

61

68

81

104

138

173

223

233

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.523

$
25.941

$
27.468

$
26.510

$
21.192

$
19.073

$
20.052

$
18.272

$
15.116

$
—

Accumulation Unit Value at end of period
$
30.363

$
28.523

$
25.941

$
27.468

$
26.510

$
21.192

$
19.073

$
20.052

$
18.272

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
61

70

88

107

124

161

233

296

374

—



22
 

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Mutual Shares VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.384

$
24.690

$
26.220

$
24.711

$
19.450

$
17.187

$
17.534

$
15.919

$
12.750

$
20.467

Accumulation Unit Value at end of period
$
30.463

$
28.384

$
24.690

$
26.220

$
24.711

$
19.450

$
17.187

$
17.534

$
15.919

$
12.750

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

3

3

3

3

3

9

9

8

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.494

$
23.964

$
25.500

$
24.080

$
18.991

$
16.816

$
17.190

$
15.638

$
12.550

$
20.185

Accumulation Unit Value at end of period
$
29.449

$
27.494

$
23.964

$
25.500

$
24.080

$
18.991

$
16.816

$
17.190

$
15.638

$
12.550

Number of Accumulation Units outstanding at end of period (in thousands)
10

11

13

13

14

16

17

12

13

10

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.977

$
23.537

$
25.071

$
23.698

$
18.709

$
16.582

$
16.968

$
15.451

$
12.412

$
19.985

Accumulation Unit Value at end of period
$
28.866

$
26.977

$
23.537

$
25.071

$
23.698

$
18.709

$
16.582

$
16.968

$
15.451

$
12.412

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

1

1

1

1

1

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.794

$
23.388

$
24.925

$
23.572

$
18.619

$
16.510

$
16.903

$
15.400

$
12.377

$
19.938

Accumulation Unit Value at end of period
$
28.655

$
26.794

$
23.388

$
24.925

$
23.572

$
18.619

$
16.510

$
16.903

$
15.400

$
12.377

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

3

4

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.220

$
22.922

$
24.465

$
23.172

$
18.330

$
16.279

$
16.691

$
15.229

$
12.259

$
19.777

Accumulation Unit Value at end of period
$
28.000

$
26.220

$
22.922

$
24.465

$
23.172

$
18.330

$
16.279

$
16.691

$
15.229

$
12.259

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

2

2

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.220

$
22.922

$
24.465

$
23.172

$
18.330

$
16.279

$
16.691

$
15.229

$
12.259

$
19.777

Accumulation Unit Value at end of period
$
28.000

$
26.220

$
22.922

$
24.465

$
23.172

$
18.330

$
16.279

$
16.691

$
15.229

$
12.259

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

2

2

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.058

$
20.188

$
21.579

$
20.469

$
16.216

$
14.423

$
14.810

$
13.534

$
10.910

$
17.628

Accumulation Unit Value at end of period
$
24.586

$
23.058

$
20.188

$
21.579

$
20.469

$
16.216

$
14.423

$
14.810

$
13.534

$
10.910

Number of Accumulation Units outstanding at end of period (in thousands)
13

36

37

55

58

69

75

82

93

130

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.754

$
19.065

$
20.399

$
19.370

$
15.360

$
13.676

$
14.057

$
12.858

$
10.376

$
—

Accumulation Unit Value at end of period
$
23.173

$
21.754

$
19.065

$
20.399

$
19.370

$
15.360

$
13.676

$
14.057

$
12.858

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
934

1,103

1,347

1,610

2,040

2,716

3,354

4,424

5,344

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.460

$
19.694

$
21.083

$
20.028

$
15.891

$
14.155

$
14.557

$
13.322

$
10.756

$
17.405

Accumulation Unit Value at end of period
$
23.913

$
22.460

$
19.694

$
21.083

$
20.028

$
15.891

$
14.155

$
14.557

$
13.322

$
10.756

Number of Accumulation Units outstanding at end of period (in thousands)
191

223

277

326

409

523

700

988

1,344

1,704

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.507

$
18.905

$
20.289

$
19.323

$
15.369

$
13.725

$
14.150

$
12.982

$
10.507

$
—

Accumulation Unit Value at end of period
$
22.841

$
21.507

$
18.905

$
20.289

$
19.323

$
15.369

$
13.725

$
14.150

$
12.982

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
286

326

393

495

608

753

1,061

1,371

1,724

—



 
23

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Rising Dividends VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.099

$
23.576

$
24.702

$
22.937

$
17.855

$
16.100

$
15.333

$
12.831

$
11.039

$
15.287

Accumulation Unit Value at end of period
$
32.362

$
27.099

$
23.576

$
24.702

$
22.937

$
17.855

$
16.100

$
15.333

$
12.831

$
11.039

Number of Accumulation Units outstanding at end of period (in thousands)
3

3

4

5

5

6

5

9

9

9

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.368

$
22.986

$
24.132

$
22.453

$
17.513

$
15.823

$
15.100

$
12.661

$
10.914

$
15.145

Accumulation Unit Value at end of period
$
31.426

$
26.368

$
22.986

$
24.132

$
22.453

$
17.513

$
15.823

$
15.100

$
12.661

$
10.914

Number of Accumulation Units outstanding at end of period (in thousands)
2

3

3

3

5

5

5

9

11

11

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.010

$
22.697

$
23.852

$
22.214

$
17.344

$
15.686

$
14.985

$
12.577

$
10.853

$
15.074

Accumulation Unit Value at end of period
$
30.968

$
26.010

$
22.697

$
23.852

$
22.214

$
17.344

$
15.686

$
14.985

$
12.577

$
10.853

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

1

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.833

$
22.553

$
23.713

$
22.096

$
17.261

$
15.618

$
14.927

$
12.535

$
10.822

$
15.039

Accumulation Unit Value at end of period
$
30.742

$
25.833

$
22.553

$
23.713

$
22.096

$
17.261

$
15.618

$
14.927

$
12.535

$
10.822

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

3

3

1

1

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.309

$
22.129

$
23.302

$
21.745

$
17.012

$
15.416

$
14.756

$
12.410

$
10.730

$
14.934

Accumulation Unit Value at end of period
$
30.073

$
25.309

$
22.129

$
23.302

$
21.745

$
17.012

$
15.416

$
14.756

$
12.410

$
10.730

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

1

1

4

5

5

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.309

$
22.129

$
23.302

$
21.745

$
17.012

$
15.416

$
14.756

$
12.410

$
10.730

$
14.934

Accumulation Unit Value at end of period
$
30.073

$
25.309

$
22.129

$
23.302

$
21.745

$
17.012

$
15.416

$
14.756

$
12.410

$
10.730

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

1

1

4

5

5

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.795

$
21.712

$
22.897

$
21.400

$
16.767

$
15.217

$
14.588

$
12.286

$
10.639

$
14.830

Accumulation Unit Value at end of period
$
29.418

$
24.795

$
21.712

$
22.897

$
21.400

$
16.767

$
15.217

$
14.588

$
12.286

$
10.639

Number of Accumulation Units outstanding at end of period (in thousands)
1

3

6

9

9

9

9

9

9

10

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.458

$
21.439

$
22.632

$
21.173

$
16.606

$
15.086

$
14.476

$
12.205

$
10.579

$
—

Accumulation Unit Value at end of period
$
28.990

$
24.458

$
21.439

$
22.632

$
21.173

$
16.606

$
15.086

$
14.476

$
12.205

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
791

939

1,100

1,336

1,678

2,107

2,505

2,989

3,241

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.292

$
21.303

$
22.500

$
21.060

$
16.526

$
15.020

$
14.421

$
12.164

$
10.549

$
14.726

Accumulation Unit Value at end of period
$
28.778

$
24.292

$
21.303

$
22.500

$
21.060

$
16.526

$
15.020

$
14.421

$
12.164

$
10.549

Number of Accumulation Units outstanding at end of period (in thousands)
57

72

83

97

136

175

232

244

298

373

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.476

$
20.639

$
21.853

$
20.506

$
16.131

$
14.698

$
14.147

$
11.963

$
10.401

$
—

Accumulation Unit Value at end of period
$
27.742

$
23.476

$
20.639

$
21.853

$
20.506

$
16.131

$
14.698

$
14.147

$
11.963

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
266

311

367

432

514

622

764

863

992

—



24
 

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Small Cap Value VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.757

$
13.770

$
15.010

$
15.067

$
11.165

$
9.521

$
9.987

$
7.863

$
6.146

$
9.264

Accumulation Unit Value at end of period
$
19.463

$
17.757

$
13.770

$
15.010

$
15.067

$
11.165

$
9.521

$
9.987

$
7.863

$
6.146

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.430

$
13.544

$
14.793

$
14.879

$
11.048

$
9.440

$
9.922

$
7.828

$
6.131

$
9.259

Accumulation Unit Value at end of period
$
19.067

$
17.430

$
13.544

$
14.793

$
14.879

$
11.048

$
9.440

$
9.922

$
7.828

$
6.131

Number of Accumulation Units outstanding at end of period (in thousands)
3

3

3

3

3

5

6

2

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.270

$
13.432

$
14.686

$
14.786

$
10.990

$
9.399

$
9.890

$
7.810

$
6.123

$
9.256

Accumulation Unit Value at end of period
$
18.872

$
17.270

$
13.432

$
14.686

$
14.786

$
10.990

$
9.399

$
9.890

$
7.810

$
6.123

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.190

$
13.376

$
14.632

$
14.740

$
10.960

$
9.379

$
9.873

$
7.801

$
6.119

$
9.255

Accumulation Unit Value at end of period
$
18.775

$
17.190

$
13.376

$
14.632

$
14.740

$
10.960

$
9.379

$
9.873

$
7.801

$
6.119

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

3

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.952

$
13.211

$
14.473

$
14.601

$
10.874

$
9.319

$
9.825

$
7.774

$
6.107

$
9.251

Accumulation Unit Value at end of period
$
18.487

$
16.952

$
13.211

$
14.473

$
14.601

$
10.874

$
9.319

$
9.825

$
7.774

$
6.107

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.952

$
13.211

$
14.473

$
14.601

$
10.874

$
9.319

$
9.825

$
7.774

$
6.107

$
9.251

Accumulation Unit Value at end of period
$
18.487

$
16.952

$
13.211

$
14.473

$
14.601

$
10.874

$
9.319

$
9.825

$
7.774

$
6.107

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.717

$
13.048

$
14.316

$
14.464

$
10.788

$
9.259

$
9.777

$
7.748

$
6.095

$
9.247

Accumulation Unit Value at end of period
$
18.204

$
16.717

$
13.048

$
14.316

$
14.464

$
10.788

$
9.259

$
9.777

$
7.748

$
6.095

Number of Accumulation Units outstanding at end of period (in thousands)
4

4

1

1

1

1

3

1

6

—

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.563

$
12.940

$
14.212

$
14.374

$
10.731

$
9.220

$
9.745

$
7.730

$
6.088

$
—

Accumulation Unit Value at end of period
$
18.018

$
16.563

$
12.940

$
14.212

$
14.374

$
10.731

$
9.220

$
9.745

$
7.730

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
112

130

117

136

155

127

155

178

123

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.486

$
12.887

$
14.161

$
14.329

$
10.703

$
9.200

$
9.729

$
7.721

$
6.084

$
9.243

Accumulation Unit Value at end of period
$
17.926

$
16.486

$
12.887

$
14.161

$
14.329

$
10.703

$
9.200

$
9.729

$
7.721

$
6.084

Number of Accumulation Units outstanding at end of period (in thousands)
4

6

6

11

19

25

30

40

26

48

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.108

$
12.623

$
13.905

$
14.105

$
10.563

$
9.102

$
9.649

$
7.677

$
6.064

$
—

Accumulation Unit Value at end of period
$
17.471

$
16.108

$
12.623

$
13.905

$
14.105

$
10.563

$
9.102

$
9.649

$
7.677

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
26

43

35

40

85

93

113

82

80

—



 
25

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Small-Mid Cap Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.457

$
21.764

$
22.571

$
21.202

$
15.493

$
14.110

$
14.968

$
11.840

$
8.325

$
14.616

Accumulation Unit Value at end of period
$
27.005

$
22.457

$
21.764

$
22.571

$
21.202

$
15.493

$
14.110

$
14.968

$
11.840

$
8.325

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.753

$
21.124

$
21.951

$
20.661

$
15.128

$
13.805

$
14.674

$
11.631

$
8.194

$
14.415

Accumulation Unit Value at end of period
$
26.106

$
21.753

$
21.124

$
21.951

$
20.661

$
15.128

$
13.805

$
14.674

$
11.631

$
8.194

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

4

5

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.344

$
20.747

$
21.581

$
20.334

$
14.903

$
13.613

$
14.484

$
11.492

$
8.105

$
14.272

Accumulation Unit Value at end of period
$
25.589

$
21.344

$
20.747

$
21.581

$
20.334

$
14.903

$
13.613

$
14.484

$
11.492

$
8.105

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.198

$
20.616

$
21.456

$
20.225

$
14.831

$
13.554

$
14.429

$
11.454

$
8.082

$
14.238

Accumulation Unit Value at end of period
$
25.402

$
21.198

$
20.616

$
21.456

$
20.225

$
14.831

$
13.554

$
14.429

$
11.454

$
8.082

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

1

1

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.745

$
20.205

$
21.060

$
19.882

$
14.601

$
13.364

$
14.248

$
11.327

$
8.004

$
14.123

Accumulation Unit Value at end of period
$
24.821

$
20.745

$
20.205

$
21.060

$
19.882

$
14.601

$
13.364

$
14.248

$
11.327

$
8.004

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.745

$
20.205

$
21.060

$
19.882

$
14.601

$
13.364

$
14.248

$
11.327

$
8.004

$
14.123

Accumulation Unit Value at end of period
$
24.821

$
20.745

$
20.205

$
21.060

$
19.882

$
14.601

$
13.364

$
14.248

$
11.327

$
8.004

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.255

$
20.733

$
21.642

$
20.463

$
15.050

$
13.796

$
14.730

$
11.728

$
8.300

$
14.667

Accumulation Unit Value at end of period
$
25.393

$
21.255

$
20.733

$
21.642

$
20.463

$
15.050

$
13.796

$
14.730

$
11.728

$
8.300

Number of Accumulation Units outstanding at end of period (in thousands)
3

3

3

6

8

9

9

13

25

21

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.123

$
11.837

$
12.369

$
11.706

$
8.618

$
7.908

$
8.452

$
6.736

$
4.772

$
—

Accumulation Unit Value at end of period
$
14.469

$
12.123

$
11.837

$
12.369

$
11.706

$
8.618

$
7.908

$
8.452

$
6.736

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
443

526

601

718

888

1,030

1,290

1,653

2,014

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.704

$
20.226

$
21.145

$
20.022

$
14.748

$
13.539

$
14.478

$
11.544

$
8.183

$
14.481

Accumulation Unit Value at end of period
$
24.698

$
20.704

$
20.226

$
21.145

$
20.022

$
14.748

$
13.539

$
14.478

$
11.544

$
8.183

Number of Accumulation Units outstanding at end of period (in thousands)
51

59

69

85

117

173

222

278

385

428

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.825

$
19.415

$
20.348

$
19.316

$
14.264

$
13.127

$
14.073

$
11.249

$
7.993

$
—

Accumulation Unit Value at end of period
$
23.590

$
19.825

$
19.415

$
20.348

$
19.316

$
14.264

$
13.127

$
14.073

$
11.249

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
111

126

147

167

207

272

388

480

691

—




 
26

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Strategic Income VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.278

$
23.574

$
24.693

$
24.411

$
23.805

$
21.245

$
20.868

$
18.944

$
15.165

$
17.207

Accumulation Unit Value at end of period
$
26.225

$
25.278

$
23.574

$
24.693

$
24.411

$
23.805

$
21.245

$
20.868

$
18.944

$
15.165

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

2

2

3

2

2

2

3

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.486

$
22.881

$
24.015

$
23.788

$
23.245

$
20.786

$
20.458

$
18.609

$
14.926

$
16.971

Accumulation Unit Value at end of period
$
25.353

$
24.486

$
22.881

$
24.015

$
23.788

$
23.245

$
20.786

$
20.458

$
18.609

$
14.926

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

2

5

5

2

2

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.026

$
22.474

$
23.611

$
23.411

$
22.899

$
20.497

$
20.195

$
18.387

$
14.763

$
16.802

Accumulation Unit Value at end of period
$
24.851

$
24.026

$
22.474

$
23.611

$
23.411

$
22.899

$
20.497

$
20.195

$
18.387

$
14.763

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.862

$
22.332

$
23.473

$
23.287

$
22.789

$
20.409

$
20.117

$
18.326

$
14.722

$
16.763

Accumulation Unit Value at end of period
$
24.670

$
23.862

$
22.332

$
23.473

$
23.287

$
22.789

$
20.409

$
20.117

$
18.326

$
14.722

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

4

4

3

3

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.352

$
21.887

$
23.040

$
22.891

$
22.435

$
20.123

$
19.865

$
18.123

$
14.580

$
16.627

Accumulation Unit Value at end of period
$
24.106

$
23.352

$
21.887

$
23.040

$
22.891

$
22.435

$
20.123

$
19.865

$
18.123

$
14.580

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

1

1

1

1

1

5

5

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.352

$
21.887

$
23.040

$
22.891

$
22.435

$
20.123

$
19.865

$
18.123

$
14.580

$
16.627

Accumulation Unit Value at end of period
$
24.106

$
23.352

$
21.887

$
23.040

$
22.891

$
22.435

$
20.123

$
19.865

$
18.123

$
14.580

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

1

1

1

1

1

5

5

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.277

$
20.911

$
22.046

$
21.936

$
21.531

$
19.341

$
19.122

$
17.472

$
14.077

$
16.078

Accumulation Unit Value at end of period
$
22.962

$
22.277

$
20.911

$
22.046

$
21.936

$
21.531

$
19.341

$
19.122

$
17.472

$
14.077

Number of Accumulation Units outstanding at end of period (in thousands)
4

5

7

8

9

10

24

17

18

18

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.042

$
19.771

$
20.865

$
20.782

$
20.419

$
18.360

$
18.170

$
16.619

$
13.404

$
—

Accumulation Unit Value at end of period
$
21.667

$
21.042

$
19.771

$
20.865

$
20.782

$
20.419

$
18.360

$
18.170

$
16.619

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
526

583

701

858

1,041

1,468

1,617

2,028

2,191

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.700

$
20.399

$
21.539

$
21.464

$
21.100

$
18.982

$
18.795

$
17.199

$
13.878

$
15.874

Accumulation Unit Value at end of period
$
22.333

$
21.700

$
20.399

$
21.539

$
21.464

$
21.100

$
18.982

$
18.795

$
17.199

$
13.878

Number of Accumulation Units outstanding at end of period (in thousands)
43

54

74

98

132

200

271

324

447

521

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.779

$
19.583

$
20.728

$
20.708

$
20.407

$
18.405

$
18.269

$
16.759

$
13.557

$
—

Accumulation Unit Value at end of period
$
21.332

$
20.779

$
19.583

$
20.728

$
20.708

$
20.407

$
18.405

$
18.269

$
16.759

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
153

167

193

271

337

433

633

864

1,133

—



 
27

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Hartford Ultrashort Bond HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.142

$
1.141

$
1.151

$
1.161

$
1.172

$
1.183

$
1.194

$
1.206

$
1.216

$
1.202

Accumulation Unit Value at end of period
$
1.142

$
1.142

$
1.141

$
1.151

$
1.161

$
1.172

$
1.183

$
1.194

$
1.206

$
1.216

Number of Accumulation Units outstanding at end of period (in thousands)
12

17

19

19

19

19

157

157

207

200

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.106

$
1.108

$
1.119

$
1.131

$
1.144

$
1.157

$
1.171

$
1.184

$
1.197

$
1.186

Accumulation Unit Value at end of period
$
1.104

$
1.106

$
1.108

$
1.119

$
1.131

$
1.144

$
1.157

$
1.171

$
1.184

$
1.197

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

2

11

9

62

119

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.085

$
1.088

$
1.100

$
1.113

$
1.127

$
1.141

$
1.156

$
1.170

$
1.184

$
1.174

Accumulation Unit Value at end of period
$
1.082

$
1.085

$
1.088

$
1.100

$
1.113

$
1.127

$
1.141

$
1.156

$
1.170

$
1.184

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.078

$
1.081

$
1.094

$
1.107

$
1.122

$
1.136

$
1.151

$
1.166

$
1.181

$
1.171

Accumulation Unit Value at end of period
$
1.075

$
1.078

$
1.081

$
1.094

$
1.107

$
1.122

$
1.136

$
1.151

$
1.166

$
1.181

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.054

$
1.060

$
1.074

$
1.088

$
1.104

$
1.120

$
1.137

$
1.153

$
1.169

$
1.162

Accumulation Unit Value at end of period
$
1.050

$
1.054

$
1.060

$
1.074

$
1.088

$
1.104

$
1.120

$
1.137

$
1.153

$
1.169

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

14

50

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.054

$
1.060

$
1.074

$
1.088

$
1.104

$
1.120

$
1.137

$
1.153

$
1.169

$
1.162

Accumulation Unit Value at end of period
$
1.050

$
1.054

$
1.060

$
1.074

$
1.088

$
1.104

$
1.120

$
1.137

$
1.153

$
1.169

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

14

50

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.033

$
1.040

$
1.055

$
1.071

$
1.089

$
1.106

$
1.124

$
1.142

$
1.160

$
1.154

Accumulation Unit Value at end of period
$
1.027

$
1.033

$
1.040

$
1.055

$
1.071

$
1.089

$
1.106

$
1.124

$
1.142

$
1.160

Number of Accumulation Units outstanding at end of period (in thousands)
431

476

592

346

347

346

346

368

445

1,991

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
0.965

$
0.972

$
0.988

$
1.004

$
1.021

$
1.038

$
1.056

$
1.074

$
1.092

$
—

Accumulation Unit Value at end of period
$
0.958

$
0.965

$
0.972

$
0.988

$
1.004

$
1.021

$
1.038

$
1.056

$
1.074

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
5,717

5,900

7,107

9,089

12,718

24,333

33,496

34,177

46,249

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.007

$
1.015

$
1.031

$
1.048

$
1.067

$
1.086

$
1.105

$
1.124

$
1.143

$
1.139

Accumulation Unit Value at end of period
$
0.999

$
1.007

$
1.015

$
1.031

$
1.048

$
1.067

$
1.086

$
1.105

$
1.124

$
1.143

Number of Accumulation Units outstanding at end of period (in thousands)
422

793

1,028

1,746

2,258

3,534

3,913

4,533

7,923

12,288

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
0.964

$
0.974

$
0.992

$
1.011

$
1.032

$
1.053

$
1.074

$
1.096

$
1.117

$
—

Accumulation Unit Value at end of period
$
0.954

$
0.964

$
0.974

$
0.992

$
1.011

$
1.032

$
1.053

$
1.074

$
1.096

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,997

3,367

3,633

3,832

6,544

9,778

16,084

17,131

22,607

—



 
28

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. American Franchise Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.375

$
16.165

$
15.541

$
14.469

$
10.423

$
9.252

$
10.732

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.656

$
16.375

$
16.165

$
15.541

$
14.469

$
10.423

$
9.252

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.187

$
16.011

$
15.424

$
14.388

$
10.386

$
9.237

$
10.730

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.377

$
16.187

$
16.011

$
15.424

$
14.388

$
10.386

$
9.237

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.093

$
15.935

$
15.366

$
14.348

$
10.367

$
9.230

$
10.728

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.239

$
16.093

$
15.935

$
15.366

$
14.348

$
10.367

$
9.230

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.047

$
15.896

$
15.337

$
14.328

$
10.358

$
9.227

$
10.728

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.171

$
16.047

$
15.896

$
15.337

$
14.328

$
10.358

$
9.227

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.908

$
15.783

$
15.250

$
14.268

$
10.330

$
9.216

$
10.726

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.966

$
15.908

$
15.783

$
15.250

$
14.268

$
10.330

$
9.216

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.908

$
15.783

$
15.250

$
14.268

$
10.330

$
9.216

$
10.726

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.966

$
15.908

$
15.783

$
15.250

$
14.268

$
10.330

$
9.216

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.771

$
15.670

$
15.163

$
14.209

$
10.302

$
9.205

$
10.724

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.764

$
15.771

$
15.670

$
15.163

$
14.209

$
10.302

$
9.205

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
2

2

2

1

1

6

2

—

—

—

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.680

$
15.595

$
15.106

$
14.169

$
10.284

$
9.197

$
10.722

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.630

$
15.680

$
15.595

$
15.106

$
14.169

$
10.284

$
9.197

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
107

120

143

165

207

301

187

—

—

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.634

$
15.558

$
15.077

$
14.149

$
10.275

$
9.194

$
10.722

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.564

$
15.634

$
15.558

$
15.077

$
14.149

$
10.275

$
9.194

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
38

48

57

61

69

110

51

—

—

—

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.409

$
15.372

$
14.935

$
14.051

$
10.229

$
9.176

$
10.718

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.234

$
15.409

$
15.372

$
14.935

$
14.051

$
10.229

$
9.176

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
66

74

82

95

112

158

86

—

—

—



 
29

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. Core Equity Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.070

$
17.460

$
18.706

$
17.462

$
13.639

$
12.091

$
12.214

$
11.255

$
8.856

$
12.798

Accumulation Unit Value at end of period
$
21.378

$
19.070

$
17.460

$
18.706

$
17.462

$
13.639

$
12.091

$
12.214

$
11.255

$
8.856

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.623

$
17.085

$
18.341

$
17.156

$
13.427

$
11.926

$
12.072

$
11.147

$
8.788

$
12.726

Accumulation Unit Value at end of period
$
20.836

$
18.623

$
17.085

$
18.341

$
17.156

$
13.427

$
11.926

$
12.072

$
11.147

$
8.788

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.404

$
16.901

$
18.162

$
17.005

$
13.322

$
11.845

$
12.002

$
11.093

$
8.755

$
12.690

Accumulation Unit Value at end of period
$
20.570

$
18.404

$
16.901

$
18.162

$
17.005

$
13.322

$
11.845

$
12.002

$
11.093

$
8.755

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.296

$
16.810

$
18.073

$
16.930

$
13.270

$
11.805

$
11.967

$
11.066

$
8.738

$
12.672

Accumulation Unit Value at end of period
$
20.439

$
18.296

$
16.810

$
18.073

$
16.930

$
13.270

$
11.805

$
11.967

$
11.066

$
8.738

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.974

$
16.539

$
17.808

$
16.707

$
13.115

$
11.684

$
11.862

$
10.986

$
8.688

$
12.618

Accumulation Unit Value at end of period
$
20.049

$
17.974

$
16.539

$
17.808

$
16.707

$
13.115

$
11.684

$
11.862

$
10.986

$
8.688

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.974

$
16.539

$
17.808

$
16.707

$
13.115

$
11.684

$
11.862

$
10.986

$
8.688

$
12.618

Accumulation Unit Value at end of period
$
20.049

$
17.974

$
16.539

$
17.808

$
16.707

$
13.115

$
11.684

$
11.862

$
10.986

$
8.688

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.657

$
16.272

$
17.547

$
16.487

$
12.962

$
11.565

$
11.759

$
10.907

$
8.638

$
12.564

Accumulation Unit Value at end of period
$
19.667

$
17.657

$
16.272

$
17.547

$
16.487

$
12.962

$
11.565

$
11.759

$
10.907

$
8.638

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

3

5

5

5

5

9

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.450

$
16.097

$
17.375

$
16.342

$
12.860

$
11.486

$
11.691

$
10.854

$
8.605

$
—

Accumulation Unit Value at end of period
$
19.416

$
17.450

$
16.097

$
17.375

$
16.342

$
12.860

$
11.486

$
11.691

$
10.854

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
182

204

265

321

414

542

648

818

957

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.347

$
16.010

$
17.290

$
16.270

$
12.810

$
11.447

$
11.656

$
10.828

$
8.588

$
12.511

Accumulation Unit Value at end of period
$
19.292

$
17.347

$
16.010

$
17.290

$
16.270

$
12.810

$
11.447

$
11.656

$
10.828

$
8.588

Number of Accumulation Units outstanding at end of period (in thousands)
27

31

37

45

58

93

117

139

195

264

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.841

$
15.582

$
16.870

$
15.914

$
12.561

$
11.253

$
11.488

$
10.697

$
8.506

$
—

Accumulation Unit Value at end of period
$
18.682

$
16.841

$
15.582

$
16.870

$
15.914

$
12.561

$
11.253

$
11.488

$
10.697

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
52

56

72

85

106

164

262

365

461

—



 
30

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. Government Money Market Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.678

$
9.761

$
9.853

$
9.946

$
9.989

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.641

$
9.678

$
9.761

$
9.853

$
9.946

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.609

$
9.711

$
9.822

$
9.934

$
9.986

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.553

$
9.609

$
9.711

$
9.822

$
9.934

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

1

1

1

1

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.575

$
9.686

$
9.807

$
9.929

$
9.985

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.509

$
9.575

$
9.686

$
9.807

$
9.929

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.557

$
9.673

$
9.799

$
9.926

$
9.984

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.487

$
9.557

$
9.673

$
9.799

$
9.926

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.506

$
9.636

$
9.775

$
9.917

$
9.982

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.422

$
9.506

$
9.636

$
9.775

$
9.917

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.506

$
9.636

$
9.775

$
9.917

$
9.982

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.422

$
9.506

$
9.636

$
9.775

$
9.917

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.455

$
9.598

$
9.752

$
9.908

$
9.981

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.357

$
9.455

$
9.598

$
9.752

$
9.908

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.421

$
9.574

$
9.737

$
9.902

$
9.979

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.315

$
9.421

$
9.574

$
9.737

$
9.902

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
599

682

367

445

204

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.404

$
9.561

$
9.729

$
9.899

$
9.979

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.293

$
9.404

$
9.561

$
9.729

$
9.899

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
2

6

10

12

12

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.320

$
9.500

$
9.690

$
9.885

$
9.976

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.187

$
9.320

$
9.500

$
9.690

$
9.885

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
197

228

189

176

203

—

—

—

—

—




 
31

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. Government Securities Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.489

$
1.485

$
1.494

$
1.448

$
1.501

$
1.479

$
1.384

$
1.325

$
1.338

$
1.203

Accumulation Unit Value at end of period
$
1.503

$
1.489

$
1.485

$
1.494

$
1.448

$
1.501

$
1.479

$
1.384

$
1.325

$
1.338

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

6

11

11

11

6

6

6

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.444

$
1.443

$
1.454

$
1.413

$
1.468

$
1.449

$
1.358

$
1.303

$
1.319

$
1.188

Accumulation Unit Value at end of period
$
1.455

$
1.444

$
1.443

$
1.454

$
1.413

$
1.468

$
1.449

$
1.358

$
1.303

$
1.319

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.421

$
1.421

$
1.434

$
1.394

$
1.450

$
1.433

$
1.345

$
1.292

$
1.308

$
1.179

Accumulation Unit Value at end of period
$
1.431

$
1.421

$
1.421

$
1.434

$
1.394

$
1.450

$
1.433

$
1.345

$
1.292

$
1.308

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.411

$
1.412

$
1.426

$
1.387

$
1.443

$
1.427

$
1.339

$
1.287

$
1.304

$
1.177

Accumulation Unit Value at end of period
$
1.420

$
1.411

$
1.412

$
1.426

$
1.387

$
1.443

$
1.427

$
1.339

$
1.287

$
1.304

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.381

$
1.384

$
1.399

$
1.364

$
1.421

$
1.407

$
1.323

$
1.273

$
1.292

$
1.167

Accumulation Unit Value at end of period
$
1.388

$
1.381

$
1.384

$
1.399

$
1.364

$
1.421

$
1.407

$
1.323

$
1.273

$
1.292

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

24

20

28

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.381

$
1.384

$
1.399

$
1.364

$
1.421

$
1.407

$
1.323

$
1.273

$
1.292

$
1.167

Accumulation Unit Value at end of period
$
1.388

$
1.381

$
1.384

$
1.399

$
1.364

$
1.421

$
1.407

$
1.323

$
1.273

$
1.292

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

24

20

28

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.348

$
1.353

$
1.370

$
1.337

$
1.395

$
1.383

$
1.303

$
1.256

$
1.276

$
1.155

Accumulation Unit Value at end of period
$
1.352

$
1.348

$
1.353

$
1.370

$
1.337

$
1.395

$
1.383

$
1.303

$
1.256

$
1.276

Number of Accumulation Units outstanding at end of period (in thousands)
42

41

53

70

100

151

166

188

245

325

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.327

$
1.334

$
1.352

$
1.321

$
1.379

$
1.369

$
1.291

$
1.245

$
1.267

$
—

Accumulation Unit Value at end of period
$
1.331

$
1.327

$
1.334

$
1.352

$
1.321

$
1.379

$
1.369

$
1.291

$
1.245

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
9,042

9,419

10,623

14,326

16,290

23,717

25,297

31,810

35,898

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.317

$
1.324

$
1.343

$
1.312

$
1.372

$
1.362

$
1.285

$
1.240

$
1.262

$
1.144

Accumulation Unit Value at end of period
$
1.320

$
1.317

$
1.324

$
1.343

$
1.312

$
1.372

$
1.362

$
1.285

$
1.240

$
1.262

Number of Accumulation Units outstanding at end of period (in thousands)
778

969

1,149

1,503

1,691

2,798

3,368

4,263

6,430

9,493

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.268

$
1.278

$
1.299

$
1.273

$
1.334

$
1.328

$
1.255

$
1.215

$
1.240

$
—

Accumulation Unit Value at end of period
$
1.267

$
1.268

$
1.278

$
1.299

$
1.273

$
1.334

$
1.328

$
1.255

$
1.215

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
3,246

3,797

4,320

5,230

6,449

9,297

11,398

15,653

19,347

—



 
32

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. International Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.548

$
2.584

$
2.671

$
2.687

$
2.280

$
1.992

$
2.156

$
1.929

$
1.440

$
2.438

Accumulation Unit Value at end of period
$
3.104

$
2.548

$
2.584

$
2.671

$
2.687

$
2.280

$
1.992

$
2.156

$
1.929

$
1.440

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.471

$
2.511

$
2.601

$
2.622

$
2.229

$
1.951

$
2.117

$
1.897

$
1.419

$
2.408

Accumulation Unit Value at end of period
$
3.005

$
2.471

$
2.511

$
2.601

$
2.622

$
2.229

$
1.951

$
2.117

$
1.897

$
1.419

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

4

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.431

$
2.473

$
2.564

$
2.588

$
2.202

$
1.930

$
2.095

$
1.880

$
1.408

$
2.391

Accumulation Unit Value at end of period
$
2.954

$
2.431

$
2.473

$
2.564

$
2.588

$
2.202

$
1.930

$
2.095

$
1.880

$
1.408

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.415

$
2.458

$
2.550

$
2.574

$
2.191

$
1.922

$
2.087

$
1.874

$
1.404

$
2.385

Accumulation Unit Value at end of period
$
2.932

$
2.415

$
2.458

$
2.550

$
2.574

$
2.191

$
1.922

$
2.087

$
1.874

$
1.404

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.363

$
2.409

$
2.502

$
2.531

$
2.157

$
1.895

$
2.061

$
1.853

$
1.390

$
2.366

Accumulation Unit Value at end of period
$
2.865

$
2.363

$
2.409

$
2.502

$
2.531

$
2.157

$
1.895

$
2.061

$
1.853

$
1.390

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

1

1

1

1

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.363

$
2.409

$
2.502

$
2.531

$
2.157

$
1.895

$
2.061

$
1.853

$
1.390

$
2.366

Accumulation Unit Value at end of period
$
2.865

$
2.363

$
2.409

$
2.502

$
2.531

$
2.157

$
1.895

$
2.061

$
1.853

$
1.390

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

1

1

1

1

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.307

$
2.355

$
2.450

$
2.481

$
2.118

$
1.863

$
2.030

$
1.828

$
1.373

$
2.341

Accumulation Unit Value at end of period
$
2.792

$
2.307

$
2.355

$
2.450

$
2.481

$
2.118

$
1.863

$
2.030

$
1.828

$
1.373

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

1

2

2

2

1

1

5

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.272

$
2.321

$
2.418

$
2.451

$
2.095

$
1.844

$
2.011

$
1.813

$
1.363

$
—

Accumulation Unit Value at end of period
$
2.747

$
2.272

$
2.321

$
2.418

$
2.451

$
2.095

$
1.844

$
2.011

$
1.813

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,915

2,211

2,693

3,141

3,649

4,072

5,107

5,865

6,600

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.254

$
2.305

$
2.402

$
2.436

$
2.083

$
1.835

$
2.002

$
1.805

$
1.358

$
2.319

Accumulation Unit Value at end of period
$
2.725

$
2.254

$
2.305

$
2.402

$
2.436

$
2.083

$
1.835

$
2.002

$
1.805

$
1.358

Number of Accumulation Units outstanding at end of period (in thousands)
105

157

175

180

205

277

379

490

667

699

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.170

$
2.224

$
2.323

$
2.362

$
2.025

$
1.788

$
1.956

$
1.768

$
1.334

$
—

Accumulation Unit Value at end of period
$
2.616

$
2.170

$
2.224

$
2.323

$
2.362

$
2.025

$
1.788

$
1.956

$
1.768

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
466

553

659

788

962

936

1,264

1,569

2,140

—



 
33

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. Mid Cap Core Equity Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.732

$
2.431

$
2.557

$
2.472

$
1.937

$
1.763

$
1.901

$
1.682

$
1.304

$
1.841

Accumulation Unit Value at end of period
$
3.110

$
2.732

$
2.431

$
2.557

$
2.472

$
1.937

$
1.763

$
1.901

$
1.682

$
1.304

Number of Accumulation Units outstanding at end of period (in thousands)
6

6

6

6

6

6

7

16

15

16

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.650

$
2.363

$
2.490

$
2.412

$
1.894

$
1.727

$
1.866

$
1.654

$
1.285

$
1.818

Accumulation Unit Value at end of period
$
3.010

$
2.650

$
2.363

$
2.490

$
2.412

$
1.894

$
1.727

$
1.866

$
1.654

$
1.285

Number of Accumulation Units outstanding at end of period (in thousands)
4

4

4

4

4

5

10

10

10

10

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.607

$
2.327

$
2.456

$
2.381

$
1.871

$
1.708

$
1.847

$
1.639

$
1.275

$
1.806

Accumulation Unit Value at end of period
$
2.959

$
2.607

$
2.327

$
2.456

$
2.381

$
1.871

$
1.708

$
1.847

$
1.639

$
1.275

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.589

$
2.313

$
2.441

$
2.368

$
1.862

$
1.701

$
1.840

$
1.634

$
1.271

$
1.801

Accumulation Unit Value at end of period
$
2.937

$
2.589

$
2.313

$
2.441

$
2.368

$
1.862

$
1.701

$
1.840

$
1.634

$
1.271

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.534

$
2.267

$
2.396

$
2.328

$
1.834

$
1.677

$
1.817

$
1.616

$
1.259

$
1.787

Accumulation Unit Value at end of period
$
2.870

$
2.534

$
2.267

$
2.396

$
2.328

$
1.834

$
1.677

$
1.817

$
1.616

$
1.259

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

3

3

3

4

2

21

21

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.534

$
2.267

$
2.396

$
2.328

$
1.834

$
1.677

$
1.817

$
1.616

$
1.259

$
1.787

Accumulation Unit Value at end of period
$
2.870

$
2.534

$
2.267

$
2.396

$
2.328

$
1.834

$
1.677

$
1.817

$
1.616

$
1.259

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

3

3

3

4

2

21

21

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.474

$
2.216

$
2.346

$
2.283

$
1.801

$
1.649

$
1.790

$
1.594

$
1.244

$
1.768

Accumulation Unit Value at end of period
$
2.797

$
2.474

$
2.216

$
2.346

$
2.283

$
1.801

$
1.649

$
1.790

$
1.594

$
1.244

Number of Accumulation Units outstanding at end of period (in thousands)
59

67

75

119

98

108

107

109

134

178

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.436

$
2.184

$
2.315

$
2.255

$
1.780

$
1.632

$
1.773

$
1.580

$
1.235

$
—

Accumulation Unit Value at end of period
$
2.752

$
2.436

$
2.184

$
2.315

$
2.255

$
1.780

$
1.632

$
1.773

$
1.580

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,538

1,824

2,117

2,484

2,910

3,942

4,985

6,201

7,387

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.417

$
2.169

$
2.300

$
2.241

$
1.770

$
1.624

$
1.765

$
1.574

$
1.230

$
1.751

Accumulation Unit Value at end of period
$
2.730

$
2.417

$
2.169

$
2.300

$
2.241

$
1.770

$
1.624

$
1.765

$
1.574

$
1.230

Number of Accumulation Units outstanding at end of period (in thousands)
527

624

699

770

911

1,206

1,682

2,349

3,283

4,006

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.327

$
2.093

$
2.225

$
2.173

$
1.721

$
1.583

$
1.725

$
1.542

$
1.208

$
—

Accumulation Unit Value at end of period
$
2.621

$
2.327

$
2.093

$
2.225

$
2.173

$
1.721

$
1.583

$
1.725

$
1.542

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
787

970

1,039

1,196

1,483

2,100

2,824

3,854

4,844

—



 
34

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. Mid Cap Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.409

$
14.438

$
14.402

$
13.458

$
9.916

$
10.027

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
17.484

$
14.409

$
14.438

$
14.402

$
13.458

$
9.916

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.271

$
14.328

$
14.321

$
13.408

$
9.899

$
10.024

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
17.281

$
14.271

$
14.328

$
14.321

$
13.408

$
9.899

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.202

$
14.273

$
14.280

$
13.384

$
9.891

$
10.022

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
17.180

$
14.202

$
14.273

$
14.280

$
13.384

$
9.891

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.168

$
14.245

$
14.260

$
13.372

$
9.887

$
10.021

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
17.130

$
14.168

$
14.245

$
14.260

$
13.372

$
9.887

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.065

$
14.164

$
14.199

$
13.335

$
9.874

$
10.018

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
16.981

$
14.065

$
14.164

$
14.199

$
13.335

$
9.874

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.065

$
14.164

$
14.199

$
13.335

$
9.874

$
10.018

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
16.981

$
14.065

$
14.164

$
14.199

$
13.335

$
9.874

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.964

$
14.083

$
14.139

$
13.298

$
9.862

$
10.016

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
16.833

$
13.964

$
14.083

$
14.139

$
13.298

$
9.862

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.896

$
14.029

$
14.099

$
13.274

$
9.854

$
10.014

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
16.735

$
13.896

$
14.029

$
14.099

$
13.274

$
9.854

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
31

40

46

37

25

9

—

—

—

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.863

$
14.002

$
14.079

$
13.262

$
9.850

$
10.013

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
16.686

$
13.863

$
14.002

$
14.079

$
13.262

$
9.850

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
3

3

4

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.696

$
13.868

$
13.980

$
13.201

$
9.829

$
10.009

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
16.445

$
13.696

$
13.868

$
13.980

$
13.201

$
9.829

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
5

2

4

3

3

14

—

—

—

—



 
35

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. Small Cap Equity Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.158

$
22.664

$
24.217

$
23.884

$
17.540

$
15.547

$
15.811

$
12.418

$
10.336

$
15.191

Accumulation Unit Value at end of period
$
28.423

$
25.158

$
22.664

$
24.217

$
23.884

$
17.540

$
15.547

$
15.811

$
12.418

$
10.336

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

8

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.502

$
22.117

$
23.680

$
23.401

$
17.220

$
15.294

$
15.584

$
12.264

$
10.229

$
15.064

Accumulation Unit Value at end of period
$
27.627

$
24.502

$
22.117

$
23.680

$
23.401

$
17.220

$
15.294

$
15.584

$
12.264

$
10.229

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.181

$
21.849

$
23.416

$
23.164

$
17.062

$
15.169

$
15.472

$
12.189

$
10.176

$
15.000

Accumulation Unit Value at end of period
$
27.237

$
24.181

$
21.849

$
23.416

$
23.164

$
17.062

$
15.169

$
15.472

$
12.189

$
10.176

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.022

$
21.716

$
23.285

$
23.046

$
16.984

$
15.107

$
15.417

$
12.151

$
10.149

$
14.969

Accumulation Unit Value at end of period
$
27.045

$
24.022

$
21.716

$
23.285

$
23.046

$
16.984

$
15.107

$
15.417

$
12.151

$
10.149

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.551

$
21.322

$
22.897

$
22.696

$
16.751

$
14.922

$
15.251

$
12.038

$
10.070

$
14.875

Accumulation Unit Value at end of period
$
26.475

$
23.551

$
21.322

$
22.897

$
22.696

$
16.751

$
14.922

$
15.251

$
12.038

$
10.070

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.551

$
21.322

$
22.897

$
22.696

$
16.751

$
14.922

$
15.251

$
12.038

$
10.070

$
14.875

Accumulation Unit Value at end of period
$
26.475

$
23.551

$
21.322

$
22.897

$
22.696

$
16.751

$
14.922

$
15.251

$
12.038

$
10.070

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.089

$
20.935

$
22.516

$
22.351

$
16.521

$
14.740

$
15.087

$
11.927

$
9.992

$
14.781

Accumulation Unit Value at end of period
$
25.916

$
23.089

$
20.935

$
22.516

$
22.351

$
16.521

$
14.740

$
15.087

$
11.927

$
9.992

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

1

1

1

1

1

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.786

$
20.681

$
22.265

$
22.124

$
16.370

$
14.619

$
14.979

$
11.853

$
9.940

$
—

Accumulation Unit Value at end of period
$
25.551

$
22.786

$
20.681

$
22.265

$
22.124

$
16.370

$
14.619

$
14.979

$
11.853

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
118

136

155

176

218

275

395

425

470

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.636

$
20.556

$
22.140

$
22.012

$
16.295

$
14.559

$
14.925

$
11.816

$
9.914

$
14.688

Accumulation Unit Value at end of period
$
25.370

$
22.636

$
20.556

$
22.140

$
22.012

$
16.295

$
14.559

$
14.925

$
11.816

$
9.914

Number of Accumulation Units outstanding at end of period (in thousands)
13

14

16

19

22

31

43

41

46

52

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.901

$
19.938

$
21.529

$
21.457

$
15.924

$
14.264

$
14.658

$
11.634

$
9.786

$
—

Accumulation Unit Value at end of period
$
24.485

$
21.901

$
19.938

$
21.529

$
21.457

$
15.924

$
14.264

$
14.658

$
11.634

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
31

36

48

49

65

81

108

136

189

—




36
 

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. Value Opportunities Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.888

$
1.611

$
1.815

$
1.719

$
1.297

$
1.113

$
1.158

$
1.089

$
0.743

$
1.555

Accumulation Unit Value at end of period
$
2.196

$
1.888

$
1.611

$
1.815

$
1.719

$
1.297

$
1.113

$
1.158

$
1.089

$
0.743

Number of Accumulation Units outstanding at end of period (in thousands)
3

5

6

6

6

6

6

15

16

13

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.831

$
1.565

$
1.767

$
1.677

$
1.268

$
1.090

$
1.137

$
1.072

$
0.732

$
1.536

Accumulation Unit Value at end of period
$
2.126

$
1.831

$
1.565

$
1.767

$
1.677

$
1.268

$
1.090

$
1.137

$
1.072

$
0.732

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.802

$
1.542

$
1.743

$
1.655

$
1.253

$
1.078

$
1.126

$
1.062

$
0.726

$
1.525

Accumulation Unit Value at end of period
$
2.090

$
1.802

$
1.542

$
1.743

$
1.655

$
1.253

$
1.078

$
1.126

$
1.062

$
0.726

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.790

$
1.532

$
1.733

$
1.646

$
1.247

$
1.073

$
1.121

$
1.058

$
0.724

$
1.522

Accumulation Unit Value at end of period
$
2.075

$
1.790

$
1.532

$
1.733

$
1.646

$
1.247

$
1.073

$
1.121

$
1.058

$
0.724

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.751

$
1.502

$
1.701

$
1.618

$
1.228

$
1.058

$
1.107

$
1.047

$
0.717

$
1.509

Accumulation Unit Value at end of period
$
2.027

$
1.751

$
1.502

$
1.701

$
1.618

$
1.228

$
1.058

$
1.107

$
1.047

$
0.717

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.751

$
1.502

$
1.701

$
1.618

$
1.228

$
1.058

$
1.107

$
1.047

$
0.717

$
1.509

Accumulation Unit Value at end of period
$
2.027

$
1.751

$
1.502

$
1.701

$
1.618

$
1.228

$
1.058

$
1.107

$
1.047

$
0.717

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.710

$
1.468

$
1.665

$
1.587

$
1.205

$
1.041

$
1.091

$
1.032

$
0.709

$
1.493

Accumulation Unit Value at end of period
$
1.976

$
1.710

$
1.468

$
1.665

$
1.587

$
1.205

$
1.041

$
1.091

$
1.032

$
0.709

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

17

21

39

21

28

29

106

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.684

$
1.447

$
1.643

$
1.567

$
1.192

$
1.030

$
1.081

$
1.024

$
0.704

$
—

Accumulation Unit Value at end of period
$
1.944

$
1.684

$
1.447

$
1.643

$
1.567

$
1.192

$
1.030

$
1.081

$
1.024

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
776

1,014

1,145

1,375

2,047

2,796

3,331

4,421

6,168

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.671

$
1.437

$
1.632

$
1.558

$
1.185

$
1.025

$
1.076

$
1.020

$
0.701

$
1.479

Accumulation Unit Value at end of period
$
1.928

$
1.671

$
1.437

$
1.632

$
1.558

$
1.185

$
1.025

$
1.076

$
1.020

$
0.701

Number of Accumulation Units outstanding at end of period (in thousands)
599

735

832

918

1,077

1,418

1,855

2,490

3,240

4,011

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.608

$
1.386

$
1.579

$
1.511

$
1.152

$
0.999

$
1.051

$
0.999

$
0.688

$
—

Accumulation Unit Value at end of period
$
1.851

$
1.608

$
1.386

$
1.579

$
1.511

$
1.152

$
0.999

$
1.051

$
0.999

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
739

845

879

1,147

1,414

2,030

2,720

4,017

5,368

—



 
37

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Core Equity Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.290

$
10.234

$
10.560

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.960

$
11.290

$
10.234

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.247

$
10.215

$
10.556

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.879

$
11.247

$
10.215

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.225

$
10.206

$
10.555

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.838

$
11.225

$
10.206

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.215

$
10.201

$
10.554

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.818

$
11.215

$
10.201

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.182

$
10.187

$
10.552

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.758

$
11.182

$
10.187

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.182

$
10.187

$
10.552

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.758

$
11.182

$
10.187

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.150

$
10.173

$
10.549

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.698

$
11.150

$
10.173

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
7

7

7

—

—

—

—

—

—

—

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.129

$
10.163

$
10.548

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.658

$
11.129

$
10.163

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
36

35

38

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.118

$
10.159

$
10.547

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.638

$
11.118

$
10.159

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
8

11

11

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.065

$
10.136

$
10.543

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.539

$
11.065

$
10.136

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
18

33

35

—

—

—

—

—

—

—



38
 

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Global Equity Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.209

$
25.589

$
26.204

$
25.467

$
20.115

$
16.465

$
17.373

$
15.610

$
11.940

$
18.201

Accumulation Unit Value at end of period
$
33.439

$
27.209

$
25.589

$
26.204

$
25.467

$
20.115

$
16.465

$
17.373

$
15.610

$
11.940

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.357

$
24.837

$
25.484

$
24.818

$
19.641

$
16.109

$
17.032

$
15.334

$
11.752

$
17.950

Accumulation Unit Value at end of period
$
32.327

$
26.357

$
24.837

$
25.484

$
24.818

$
19.641

$
16.109

$
17.032

$
15.334

$
11.752

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.861

$
24.394

$
25.055

$
24.424

$
19.349

$
15.885

$
16.812

$
15.151

$
11.624

$
17.772

Accumulation Unit Value at end of period
$
31.687

$
25.861

$
24.394

$
25.055

$
24.424

$
19.349

$
15.885

$
16.812

$
15.151

$
11.624

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.685

$
24.240

$
24.909

$
24.294

$
19.256

$
15.816

$
16.748

$
15.100

$
11.591

$
17.731

Accumulation Unit Value at end of period
$
31.455

$
25.685

$
24.240

$
24.909

$
24.294

$
19.256

$
15.816

$
16.748

$
15.100

$
11.591

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.135

$
23.757

$
24.450

$
23.881

$
18.957

$
15.594

$
16.537

$
14.933

$
11.480

$
17.587

Accumulation Unit Value at end of period
$
30.736

$
25.135

$
23.757

$
24.450

$
23.881

$
18.957

$
15.594

$
16.537

$
14.933

$
11.480

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.135

$
23.757

$
24.450

$
23.881

$
18.957

$
15.594

$
16.537

$
14.933

$
11.480

$
17.587

Accumulation Unit Value at end of period
$
30.736

$
25.135

$
23.757

$
24.450

$
23.881

$
18.957

$
15.594

$
16.537

$
14.933

$
11.480

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.515

$
22.259

$
22.942

$
22.443

$
17.842

$
14.699

$
15.611

$
14.118

$
10.869

$
16.677

Accumulation Unit Value at end of period
$
28.712

$
23.515

$
22.259

$
22.942

$
22.443

$
17.842

$
14.699

$
15.611

$
14.118

$
10.869

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

1

1

2

2

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.939

$
19.841

$
20.470

$
20.045

$
15.951

$
13.155

$
13.985

$
12.660

$
9.757

$
—

Accumulation Unit Value at end of period
$
25.542

$
20.939

$
19.841

$
20.470

$
20.045

$
15.951

$
13.155

$
13.985

$
12.660

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
29

29

36

43

53

65

94

89

53

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.905

$
21.714

$
22.415

$
21.960

$
17.484

$
14.426

$
15.344

$
13.897

$
10.715

$
16.466

Accumulation Unit Value at end of period
$
27.926

$
22.905

$
21.714

$
22.415

$
21.960

$
17.484

$
14.426

$
15.344

$
13.897

$
10.715

Number of Accumulation Units outstanding at end of period (in thousands)
6

7

7

9

16

12

13

15

24

26

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.933

$
20.845

$
21.571

$
21.186

$
16.910

$
13.987

$
14.915

$
13.542

$
10.468

$
—

Accumulation Unit Value at end of period
$
26.674

$
21.933

$
20.845

$
21.571

$
21.186

$
16.910

$
13.987

$
14.915

$
13.542

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
10

13

18

22

31

41

36

43

62

—



 
39

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Growth Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.720

$
18.448

$
17.316

$
16.046

$
11.837

$
10.180

$
10.310

$
9.025

$
6.618

$
10.675

Accumulation Unit Value at end of period
$
24.367

$
18.720

$
18.448

$
17.316

$
16.046

$
11.837

$
10.180

$
10.310

$
9.025

$
6.618

Number of Accumulation Units outstanding at end of period (in thousands)
2

2

2

2

2

2

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.134

$
17.906

$
16.840

$
15.636

$
11.558

$
9.960

$
10.108

$
8.865

$
6.514

$
10.528

Accumulation Unit Value at end of period
$
23.556

$
18.134

$
17.906

$
16.840

$
15.636

$
11.558

$
9.960

$
10.108

$
8.865

$
6.514

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.792

$
17.587

$
16.556

$
15.388

$
11.386

$
9.821

$
9.977

$
8.759

$
6.442

$
10.424

Accumulation Unit Value at end of period
$
23.090

$
17.792

$
17.587

$
16.556

$
15.388

$
11.386

$
9.821

$
9.977

$
8.759

$
6.442

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.671

$
17.476

$
16.460

$
15.306

$
11.331

$
9.779

$
9.939

$
8.730

$
6.424

$
10.399

Accumulation Unit Value at end of period
$
22.921

$
17.671

$
17.476

$
16.460

$
15.306

$
11.331

$
9.779

$
9.939

$
8.730

$
6.424

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.293

$
17.127

$
16.156

$
15.046

$
11.155

$
9.642

$
9.814

$
8.633

$
6.362

$
10.315

Accumulation Unit Value at end of period
$
22.397

$
17.293

$
17.127

$
16.156

$
15.046

$
11.155

$
9.642

$
9.814

$
8.633

$
6.362

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.293

$
17.127

$
16.156

$
15.046

$
11.155

$
9.642

$
9.814

$
8.633

$
6.362

$
10.315

Accumulation Unit Value at end of period
$
22.397

$
17.293

$
17.127

$
16.156

$
15.046

$
11.155

$
9.642

$
9.814

$
8.633

$
6.362

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.728

$
16.592

$
15.675

$
14.620

$
10.855

$
9.397

$
9.579

$
8.439

$
6.229

$
10.114

Accumulation Unit Value at end of period
$
21.632

$
16.728

$
16.592

$
15.675

$
14.620

$
10.855

$
9.397

$
9.579

$
8.439

$
6.229

Number of Accumulation Units outstanding at end of period (in thousands)
5

6

6

6

6

7

5

6

6

8

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.956

$
10.879

$
10.287

$
9.605

$
7.139

$
6.185

$
6.312

$
5.566

$
4.113

$
—

Accumulation Unit Value at end of period
$
14.155

$
10.956

$
10.879

$
10.287

$
9.605

$
7.139

$
6.185

$
6.312

$
5.566

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
202

312

422

482

629

282

298

377

359

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.294

$
16.186

$
15.315

$
14.305

$
10.638

$
9.222

$
9.415

$
8.307

$
6.141

$
9.985

Accumulation Unit Value at end of period
$
21.040

$
16.294

$
16.186

$
15.315

$
14.305

$
10.638

$
9.222

$
9.415

$
8.307

$
6.141

Number of Accumulation Units outstanding at end of period (in thousands)
25

36

39

36

51

50

67

77

117

125

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.602

$
15.538

$
14.738

$
13.801

$
10.288

$
8.941

$
9.152

$
8.095

$
5.999

$
—

Accumulation Unit Value at end of period
$
20.097

$
15.602

$
15.538

$
14.738

$
13.801

$
10.288

$
8.941

$
9.152

$
8.095

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
66

63

72

96

117

84

128

129

178

—



40
 

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS High Yield Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.461

$
10.165

$
10.714

$
10.521

$
10.151

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
12.112

$
11.461

$
10.165

$
10.714

$
10.521

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
5

6

6

6

6

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.381

$
10.114

$
10.682

$
10.510

$
10.149

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
12.003

$
11.381

$
10.114

$
10.682

$
10.510

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.341

$
10.089

$
10.666

$
10.505

$
10.147

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.949

$
11.341

$
10.089

$
10.666

$
10.505

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.321

$
10.076

$
10.658

$
10.502

$
10.146

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.922

$
11.321

$
10.076

$
10.658

$
10.502

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.262

$
10.038

$
10.634

$
10.494

$
10.144

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.842

$
11.262

$
10.038

$
10.634

$
10.494

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.262

$
10.038

$
10.634

$
10.494

$
10.144

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.842

$
11.262

$
10.038

$
10.634

$
10.494

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.203

$
10.001

$
10.610

$
10.486

$
10.142

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.762

$
11.203

$
10.001

$
10.610

$
10.486

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
23

23

24

27

25

—

—

—

—

—

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.163

$
9.976

$
10.593

$
10.481

$
10.141

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.709

$
11.163

$
9.976

$
10.593

$
10.481

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
305

351

437

526

628

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.144

$
9.963

$
10.585

$
10.478

$
10.140

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.683

$
11.144

$
9.963

$
10.585

$
10.478

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
83

97

100

136

171

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.046

$
9.901

$
10.546

$
10.465

$
10.137

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.552

$
11.046

$
9.901

$
10.546

$
10.465

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
94

94

112

130

181

—

—

—

—

—




 
41

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Investors Trust Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.069

$
18.658

$
18.796

$
17.094

$
13.068

$
11.070

$
11.424

$
10.381

$
8.259

$
12.459

Accumulation Unit Value at end of period
$
24.521

$
20.069

$
18.658

$
18.796

$
17.094

$
13.068

$
11.070

$
11.424

$
10.381

$
8.259

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.440

$
18.110

$
18.280

$
16.658

$
12.760

$
10.830

$
11.200

$
10.198

$
8.129

$
12.288

Accumulation Unit Value at end of period
$
23.705

$
19.440

$
18.110

$
18.280

$
16.658

$
12.760

$
10.830

$
11.200

$
10.198

$
8.129

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.075

$
17.787

$
17.972

$
16.393

$
12.570

$
10.680

$
11.055

$
10.076

$
8.040

$
12.166

Accumulation Unit Value at end of period
$
23.236

$
19.075

$
17.787

$
17.972

$
16.393

$
12.570

$
10.680

$
11.055

$
10.076

$
8.040

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.945

$
17.675

$
17.867

$
16.306

$
12.510

$
10.634

$
11.013

$
10.043

$
8.017

$
12.138

Accumulation Unit Value at end of period
$
23.066

$
18.945

$
17.675

$
17.867

$
16.306

$
12.510

$
10.634

$
11.013

$
10.043

$
8.017

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.539

$
17.322

$
17.537

$
16.029

$
12.316

$
10.484

$
10.875

$
9.931

$
7.941

$
12.039

Accumulation Unit Value at end of period
$
22.538

$
18.539

$
17.322

$
17.537

$
16.029

$
12.316

$
10.484

$
10.875

$
9.931

$
7.941

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.539

$
17.322

$
17.537

$
16.029

$
12.316

$
10.484

$
10.875

$
9.931

$
7.941

$
12.039

Accumulation Unit Value at end of period
$
22.538

$
18.539

$
17.322

$
17.537

$
16.029

$
12.316

$
10.484

$
10.875

$
9.931

$
7.941

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.105

$
15.070

$
15.280

$
13.987

$
10.763

$
9.176

$
9.532

$
8.718

$
6.981

$
10.601

Accumulation Unit Value at end of period
$
19.549

$
16.105

$
15.070

$
15.280

$
13.987

$
10.763

$
9.176

$
9.532

$
8.718

$
6.981

Number of Accumulation Units outstanding at end of period (in thousands)
5

5

14

15

15

17

18

17

20

23

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.662

$
14.670

$
14.890

$
13.643

$
10.509

$
8.968

$
9.326

$
8.538

$
6.844

$
—

Accumulation Unit Value at end of period
$
18.993

$
15.662

$
14.670

$
14.890

$
13.643

$
10.509

$
8.968

$
9.326

$
8.538

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
394

459

538

640

812

1,177

1,512

1,888

2,162

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.687

$
14.702

$
14.929

$
13.686

$
10.547

$
9.006

$
9.369

$
8.582

$
6.882

$
10.466

Accumulation Unit Value at end of period
$
19.014

$
15.687

$
14.702

$
14.929

$
13.686

$
10.547

$
9.006

$
9.369

$
8.582

$
6.882

Number of Accumulation Units outstanding at end of period (in thousands)
27

31

37

53

71

124

155

195

235

332

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.021

$
14.113

$
14.367

$
13.204

$
10.201

$
8.732

$
9.107

$
8.363

$
6.723

$
—

Accumulation Unit Value at end of period
$
18.162

$
15.021

$
14.113

$
14.367

$
13.204

$
10.201

$
8.732

$
9.107

$
8.363

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
128

146

167

213

278

419

596

800

1,051

—



 
42

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Massachusetts Investors Growth Stock Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.714

$
10.197

$
10.400

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.630

$
10.714

$
10.197

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.673

$
10.178

$
10.397

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.550

$
10.673

$
10.178

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.653

$
10.169

$
10.396

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.511

$
10.653

$
10.169

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.643

$
10.164

$
10.395

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.491

$
10.643

$
10.164

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.612

$
10.150

$
10.393

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.432

$
10.612

$
10.150

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.612

$
10.150

$
10.393

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.432

$
10.612

$
10.150

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.582

$
10.136

$
10.390

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.374

$
10.582

$
10.136

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
3

5

5

—

—

—

—

—

—

—

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.561

$
10.127

$
10.389

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.335

$
10.561

$
10.127

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
66

69

75

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.551

$
10.122

$
10.388

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.315

$
10.551

$
10.122

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
15

17

23

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.501

$
10.099

$
10.384

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.219

$
10.501

$
10.099

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
11

33

26

—

—

—

—

—

—

—



 
43

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Mid Cap Growth Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.047

$
9.668

$
9.330

$
8.652

$
6.343

$
5.495

$
5.903

$
4.596

$
3.273

$
6.821

Accumulation Unit Value at end of period
$
12.639

$
10.047

$
9.668

$
9.330

$
8.652

$
6.343

$
5.495

$
5.903

$
4.596

$
3.273

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.732

$
9.384

$
9.074

$
8.432

$
6.193

$
5.377

$
5.787

$
4.515

$
3.221

$
6.727

Accumulation Unit Value at end of period
$
12.218

$
9.732

$
9.384

$
9.074

$
8.432

$
6.193

$
5.377

$
5.787

$
4.515

$
3.221

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

1

1

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.562

$
9.229

$
8.933

$
8.309

$
6.109

$
5.309

$
5.719

$
4.467

$
3.190

$
6.669

Accumulation Unit Value at end of period
$
11.992

$
9.562

$
9.229

$
8.933

$
8.309

$
6.109

$
5.309

$
5.719

$
4.467

$
3.190

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.496

$
9.170

$
8.881

$
8.265

$
6.079

$
5.286

$
5.698

$
4.452

$
3.181

$
6.653

Accumulation Unit Value at end of period
$
11.904

$
9.496

$
9.170

$
8.881

$
8.265

$
6.079

$
5.286

$
5.698

$
4.452

$
3.181

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.293

$
8.988

$
8.717

$
8.124

$
5.985

$
5.212

$
5.626

$
4.403

$
3.151

$
6.599

Accumulation Unit Value at end of period
$
11.632

$
9.293

$
8.988

$
8.717

$
8.124

$
5.985

$
5.212

$
5.626

$
4.403

$
3.151

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

4

4

4

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.293

$
8.988

$
8.717

$
8.124

$
5.985

$
5.212

$
5.626

$
4.403

$
3.151

$
6.599

Accumulation Unit Value at end of period
$
11.632

$
9.293

$
8.988

$
8.717

$
8.124

$
5.985

$
5.212

$
5.626

$
4.403

$
3.151

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

4

4

4

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.042

$
8.758

$
8.507

$
7.940

$
5.859

$
5.109

$
5.523

$
4.329

$
3.102

$
6.508

Accumulation Unit Value at end of period
$
11.301

$
9.042

$
8.758

$
8.507

$
7.940

$
5.859

$
5.109

$
5.523

$
4.329

$
3.102

Number of Accumulation Units outstanding at end of period (in thousands)
5

5

6

7

7

10

8

12

6

33

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.611

$
9.319

$
9.060

$
8.466

$
6.252

$
5.458

$
5.906

$
4.634

$
3.324

$
—

Accumulation Unit Value at end of period
$
12.000

$
9.611

$
9.319

$
9.060

$
8.466

$
6.252

$
5.458

$
5.906

$
4.634

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
150

176

236

273

362

433

517

666

764

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
8.823

$
8.559

$
8.326

$
7.783

$
5.751

$
5.023

$
5.438

$
4.269

$
3.064

$
6.437

Accumulation Unit Value at end of period
$
11.011

$
8.823

$
8.559

$
8.326

$
7.783

$
5.751

$
5.023

$
5.438

$
4.269

$
3.064

Number of Accumulation Units outstanding at end of period (in thousands)
47

55

72

96

110

137

188

272

384

445

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
8.470

$
8.237

$
8.033

$
7.528

$
5.576

$
4.882

$
5.300

$
4.170

$
3.001

$
—

Accumulation Unit Value at end of period
$
10.544

$
8.470

$
8.237

$
8.033

$
7.528

$
5.576

$
4.882

$
5.300

$
4.170

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
102

117

142

182

217

273

372

518

606

—



 
44

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS New Discovery Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.009

$
27.780

$
28.585

$
31.116

$
22.197

$
18.485

$
20.797

$
15.400

$
9.527

$
15.853

Accumulation Unit Value at end of period
$
37.648

$
30.009

$
27.780

$
28.585

$
31.116

$
22.197

$
18.485

$
20.797

$
15.400

$
9.527

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
29.068

$
26.963

$
27.799

$
30.322

$
21.673

$
18.086

$
20.388

$
15.127

$
9.377

$
15.635

Accumulation Unit Value at end of period
$
36.395

$
29.068

$
26.963

$
27.799

$
30.322

$
21.673

$
18.086

$
20.388

$
15.127

$
9.377

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.521

$
26.483

$
27.331

$
29.841

$
21.351

$
17.834

$
20.125

$
14.947

$
9.275

$
15.480

Accumulation Unit Value at end of period
$
35.675

$
28.521

$
26.483

$
27.331

$
29.841

$
21.351

$
17.834

$
20.125

$
14.947

$
9.275

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.326

$
26.315

$
27.172

$
29.682

$
21.248

$
17.757

$
20.048

$
14.897

$
9.248

$
15.443

Accumulation Unit Value at end of period
$
35.414

$
28.326

$
26.315

$
27.172

$
29.682

$
21.248

$
17.757

$
20.048

$
14.897

$
9.248

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.720

$
25.791

$
26.670

$
29.178

$
20.918

$
17.508

$
19.796

$
14.732

$
9.160

$
15.318

Accumulation Unit Value at end of period
$
34.604

$
27.720

$
25.791

$
26.670

$
29.178

$
20.918

$
17.508

$
19.796

$
14.732

$
9.160

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.720

$
25.791

$
26.670

$
29.178

$
20.918

$
17.508

$
19.796

$
14.732

$
9.160

$
15.318

Accumulation Unit Value at end of period
$
34.604

$
27.720

$
25.791

$
26.670

$
29.178

$
20.918

$
17.508

$
19.796

$
14.732

$
9.160

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.988

$
23.284

$
24.114

$
26.421

$
18.970

$
15.901

$
18.007

$
13.420

$
8.357

$
13.997

Accumulation Unit Value at end of period
$
31.147

$
24.988

$
23.284

$
24.114

$
26.421

$
18.970

$
15.901

$
18.007

$
13.420

$
8.357

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

2

4

7

7

7

8

13

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.252

$
15.159

$
15.715

$
17.236

$
12.388

$
10.394

$
11.782

$
8.790

$
5.479

$
—

Accumulation Unit Value at end of period
$
20.238

$
16.252

$
15.159

$
15.715

$
17.236

$
12.388

$
10.394

$
11.782

$
8.790

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
222

259

295

354

455

650

814

977

1,240

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.341

$
22.714

$
23.560

$
25.852

$
18.590

$
15.606

$
17.699

$
13.210

$
8.238

$
13.819

Accumulation Unit Value at end of period
$
30.294

$
24.341

$
22.714

$
23.560

$
25.852

$
18.590

$
15.606

$
17.699

$
13.210

$
8.238

Number of Accumulation Units outstanding at end of period (in thousands)
17

21

24

29

35

48

70

78

92

124

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.307

$
21.804

$
22.672

$
24.941

$
17.979

$
15.131

$
17.203

$
12.873

$
8.048

$
—

Accumulation Unit Value at end of period
$
28.935

$
23.307

$
21.804

$
22.672

$
24.941

$
17.979

$
15.131

$
17.203

$
12.873

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
53

61

69

81

101

186

259

327

443

—



 
45

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Research International Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.442

$
9.600

$
10.521

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.999

$
9.442

$
9.600

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.406

$
9.582

$
10.518

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.929

$
9.406

$
9.582

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

1

1

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.388

$
9.573

$
10.516

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.895

$
9.388

$
9.573

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.379

$
9.569

$
10.515

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.877

$
9.379

$
9.569

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.352

$
9.556

$
10.513

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.825

$
9.352

$
9.556

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.352

$
9.556

$
10.513

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.825

$
9.352

$
9.556

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.325

$
9.543

$
10.511

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.774

$
9.325

$
9.543

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.307

$
9.534

$
10.509

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.739

$
9.307

$
9.534

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
128

155

195

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.299

$
9.530

$
10.508

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.722

$
9.299

$
9.530

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
7

9

10

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.254

$
9.508

$
10.504

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.637

$
9.254

$
9.508

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
55

62

72

—

—

—

—

—

—

—




 
46

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Research Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.648

$
20.099

$
20.129

$
18.440

$
14.072

$
12.114

$
12.285

$
10.701

$
8.276

$
13.072

Accumulation Unit Value at end of period
$
26.454

$
21.648

$
20.099

$
20.129

$
18.440

$
14.072

$
12.114

$
12.285

$
10.701

$
8.276

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.141

$
19.668

$
19.737

$
18.117

$
13.853

$
11.950

$
12.143

$
10.598

$
8.212

$
12.998

Accumulation Unit Value at end of period
$
25.784

$
21.141

$
19.668

$
19.737

$
18.117

$
13.853

$
11.950

$
12.143

$
10.598

$
8.212

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.893

$
19.456

$
19.543

$
17.957

$
13.745

$
11.868

$
12.072

$
10.547

$
8.181

$
12.961

Accumulation Unit Value at end of period
$
25.455

$
20.893

$
19.456

$
19.543

$
17.957

$
13.745

$
11.868

$
12.072

$
10.547

$
8.181

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.769

$
19.351

$
19.447

$
17.878

$
13.691

$
11.828

$
12.037

$
10.522

$
8.165

$
12.943

Accumulation Unit Value at end of period
$
25.292

$
20.769

$
19.351

$
19.447

$
17.878

$
13.691

$
11.828

$
12.037

$
10.522

$
8.165

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.404

$
19.039

$
19.163

$
17.643

$
13.531

$
11.707

$
11.932

$
10.445

$
8.118

$
12.888

Accumulation Unit Value at end of period
$
24.810

$
20.404

$
19.039

$
19.163

$
17.643

$
13.531

$
11.707

$
11.932

$
10.445

$
8.118

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.404

$
19.039

$
19.163

$
17.643

$
13.531

$
11.707

$
11.932

$
10.445

$
8.118

$
12.888

Accumulation Unit Value at end of period
$
24.810

$
20.404

$
19.039

$
19.163

$
17.643

$
13.531

$
11.707

$
11.932

$
10.445

$
8.118

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.044

$
18.731

$
18.882

$
17.410

$
13.373

$
11.587

$
11.828

$
10.370

$
8.072

$
12.833

Accumulation Unit Value at end of period
$
24.336

$
20.044

$
18.731

$
18.882

$
17.410

$
13.373

$
11.587

$
11.828

$
10.370

$
8.072

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

1

—

—

—

—

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.809

$
18.529

$
18.697

$
17.257

$
13.269

$
11.508

$
11.759

$
10.320

$
8.041

$
—

Accumulation Unit Value at end of period
$
24.026

$
19.809

$
18.529

$
18.697

$
17.257

$
13.269

$
11.508

$
11.759

$
10.320

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
31

32

36

46

55

54

83

120

120

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.692

$
18.429

$
18.605

$
17.181

$
13.217

$
11.469

$
11.725

$
10.295

$
8.025

$
12.779

Accumulation Unit Value at end of period
$
23.872

$
19.692

$
18.429

$
18.605

$
17.181

$
13.217

$
11.469

$
11.725

$
10.295

$
8.025

Number of Accumulation Units outstanding at end of period (in thousands)
4

4

5

7

5

8

8

11

14

10

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.117

$
17.937

$
18.153

$
16.805

$
12.960

$
11.275

$
11.555

$
10.171

$
7.949

$
—

Accumulation Unit Value at end of period
$
23.118

$
19.117

$
17.937

$
18.153

$
16.805

$
12.960

$
11.275

$
11.555

$
10.171

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
6

6

8

8

9

15

11

14

26

—



 
47

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Total Return Bond Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.957

$
14.487

$
14.669

$
13.991

$
14.272

$
13.422

$
12.694

$
11.925

$
10.364

$
10.716

Accumulation Unit Value at end of period
$
15.476

$
14.957

$
14.487

$
14.669

$
13.991

$
14.272

$
13.422

$
12.694

$
11.925

$
10.364

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

1

1

3

3

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.608

$
14.177

$
14.384

$
13.747

$
14.051

$
13.240

$
12.547

$
11.810

$
10.285

$
10.656

Accumulation Unit Value at end of period
$
15.084

$
14.608

$
14.177

$
14.384

$
13.747

$
14.051

$
13.240

$
12.547

$
11.810

$
10.285

Number of Accumulation Units outstanding at end of period (in thousands)
3

4

4

5

5

1

2

2

2

2

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.436

$
14.024

$
14.244

$
13.626

$
13.942

$
13.150

$
12.474

$
11.754

$
10.246

$
10.626

Accumulation Unit Value at end of period
$
14.892

$
14.436

$
14.024

$
14.244

$
13.626

$
13.942

$
13.150

$
12.474

$
11.754

$
10.246

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.351

$
13.949

$
14.174

$
13.566

$
13.887

$
13.106

$
12.438

$
11.725

$
10.226

$
10.611

Accumulation Unit Value at end of period
$
14.797

$
14.351

$
13.949

$
14.174

$
13.566

$
13.887

$
13.106

$
12.438

$
11.725

$
10.226

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.099

$
13.724

$
13.967

$
13.388

$
13.726

$
12.972

$
12.330

$
11.641

$
10.168

$
10.567

Accumulation Unit Value at end of period
$
14.516

$
14.099

$
13.724

$
13.967

$
13.388

$
13.726

$
12.972

$
12.330

$
11.641

$
10.168

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

1

1

1

1

1

5

4

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.099

$
13.724

$
13.967

$
13.388

$
13.726

$
12.972

$
12.330

$
11.641

$
10.168

$
10.567

Accumulation Unit Value at end of period
$
14.516

$
14.099

$
13.724

$
13.967

$
13.388

$
13.726

$
12.972

$
12.330

$
11.641

$
10.168

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

1

1

1

1

1

5

4

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.852

$
13.503

$
13.763

$
13.212

$
13.566

$
12.841

$
12.223

$
11.557

$
10.110

$
10.522

Accumulation Unit Value at end of period
$
14.239

$
13.852

$
13.503

$
13.763

$
13.212

$
13.566

$
12.841

$
12.223

$
11.557

$
10.110

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

2

2

5

4

3

3

1

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.689

$
13.358

$
13.628

$
13.096

$
13.460

$
12.753

$
12.152

$
11.502

$
10.072

$
—

Accumulation Unit Value at end of period
$
14.058

$
13.689

$
13.358

$
13.628

$
13.096

$
13.460

$
12.753

$
12.152

$
11.502

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
708

839

1,047

1,236

1,677

780

773

921

914

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.608

$
13.286

$
13.562

$
13.039

$
13.408

$
12.710

$
12.117

$
11.474

$
10.052

$
10.478

Accumulation Unit Value at end of period
$
13.968

$
13.608

$
13.286

$
13.562

$
13.039

$
13.408

$
12.710

$
12.117

$
11.474

$
10.052

Number of Accumulation Units outstanding at end of period (in thousands)
70

101

115

125

142

111

113

112

105

64

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.212

$
12.932

$
13.233

$
12.755

$
13.148

$
12.495

$
11.942

$
11.337

$
9.957

$
—

Accumulation Unit Value at end of period
$
13.528

$
13.212

$
12.932

$
13.233

$
12.755

$
13.148

$
12.495

$
11.942

$
11.337

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
313

318

342

407

481

303

336

367

320

—



 
48

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Total Return Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.212

$
22.405

$
22.703

$
21.124

$
17.914

$
16.255

$
16.125

$
14.808

$
12.666

$
16.421

Accumulation Unit Value at end of period
$
26.932

$
24.212

$
22.405

$
22.703

$
21.124

$
17.914

$
16.255

$
16.125

$
14.808

$
12.666

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

2

2

4

6

14

14

15

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.453

$
21.746

$
22.080

$
20.586

$
17.492

$
15.904

$
15.808

$
14.546

$
12.467

$
16.196

Accumulation Unit Value at end of period
$
26.036

$
23.453

$
21.746

$
22.080

$
20.586

$
17.492

$
15.904

$
15.808

$
14.546

$
12.467

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

1

4

7

4

4

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.012

$
21.359

$
21.708

$
20.259

$
17.232

$
15.683

$
15.604

$
14.373

$
12.331

$
16.035

Accumulation Unit Value at end of period
$
25.521

$
23.012

$
21.359

$
21.708

$
20.259

$
17.232

$
15.683

$
15.604

$
14.373

$
12.331

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.855

$
21.224

$
21.582

$
20.151

$
17.149

$
15.615

$
15.544

$
14.325

$
12.296

$
15.997

Accumulation Unit Value at end of period
$
25.335

$
22.855

$
21.224

$
21.582

$
20.151

$
17.149

$
15.615

$
15.544

$
14.325

$
12.296

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

1

1

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.366

$
20.801

$
21.183

$
19.809

$
16.883

$
15.396

$
15.349

$
14.167

$
12.178

$
15.868

Accumulation Unit Value at end of period
$
24.755

$
22.366

$
20.801

$
21.183

$
19.809

$
16.883

$
15.396

$
15.349

$
14.167

$
12.178

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

2

2

2

14

14

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.366

$
20.801

$
21.183

$
19.809

$
16.883

$
15.396

$
15.349

$
14.167

$
12.178

$
15.868

Accumulation Unit Value at end of period
$
24.755

$
22.366

$
20.801

$
21.183

$
19.809

$
16.883

$
15.396

$
15.349

$
14.167

$
12.178

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

2

2

2

14

14

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.368

$
18.971

$
19.349

$
18.121

$
15.467

$
14.127

$
14.105

$
13.037

$
11.224

$
14.647

Accumulation Unit Value at end of period
$
22.510

$
20.368

$
18.971

$
19.349

$
18.121

$
15.467

$
14.127

$
14.105

$
13.037

$
11.224

Number of Accumulation Units outstanding at end of period (in thousands)
37

57

58

61

64

69

81

84

93

106

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.962

$
17.679

$
18.049

$
16.920

$
14.457

$
13.217

$
13.210

$
12.222

$
10.533

$
—

Accumulation Unit Value at end of period
$
20.935

$
18.962

$
17.679

$
18.049

$
16.920

$
14.457

$
13.217

$
13.210

$
12.222

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
900

1,019

1,135

1,371

1,702

2,482

3,066

3,786

4,324

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.841

$
18.508

$
18.904

$
17.731

$
15.157

$
13.864

$
13.863

$
12.834

$
11.065

$
14.461

Accumulation Unit Value at end of period
$
21.894

$
19.841

$
18.508

$
18.904

$
17.731

$
15.157

$
13.864

$
13.863

$
12.834

$
11.065

Number of Accumulation Units outstanding at end of period (in thousands)
148

193

225

260

345

473

627

872

1,348

1,626

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.998

$
17.766

$
18.193

$
17.106

$
14.660

$
13.443

$
13.476

$
12.506

$
10.810

$
—

Accumulation Unit Value at end of period
$
20.913

$
18.998

$
17.766

$
18.193

$
17.106

$
14.660

$
13.443

$
13.476

$
12.506

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
344

380

445

529

651

850

1,144

1,457

1,713

—



 
49

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Value Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
31.611

$
27.972

$
28.449

$
25.989

$
19.308

$
16.766

$
16.977

$
15.367

$
12.642

$
18.931

Accumulation Unit Value at end of period
$
36.839

$
31.611

$
27.972

$
28.449

$
25.989

$
19.308

$
16.766

$
16.977

$
15.367

$
12.642

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.759

$
27.272

$
27.792

$
25.440

$
18.938

$
16.477

$
16.719

$
15.163

$
12.499

$
18.755

Accumulation Unit Value at end of period
$
35.775

$
30.759

$
27.272

$
27.792

$
25.440

$
18.938

$
16.477

$
16.719

$
15.163

$
12.499

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

2

2

2

2

2

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.341

$
26.929

$
27.470

$
25.170

$
18.756

$
16.335

$
16.591

$
15.062

$
12.429

$
18.668

Accumulation Unit Value at end of period
$
35.254

$
30.341

$
26.929

$
27.470

$
25.170

$
18.756

$
16.335

$
16.591

$
15.062

$
12.429

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.135

$
26.759

$
27.310

$
25.036

$
18.665

$
16.265

$
16.527

$
15.012

$
12.393

$
18.624

Accumulation Unit Value at end of period
$
34.996

$
30.135

$
26.759

$
27.310

$
25.036

$
18.665

$
16.265

$
16.527

$
15.012

$
12.393

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

2

2

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
29.523

$
26.255

$
26.836

$
24.639

$
18.396

$
16.054

$
16.338

$
14.863

$
12.288

$
18.494

Accumulation Unit Value at end of period
$
34.234

$
29.523

$
26.255

$
26.836

$
24.639

$
18.396

$
16.054

$
16.338

$
14.863

$
12.288

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

2

2

2

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
29.523

$
26.255

$
26.836

$
24.639

$
18.396

$
16.054

$
16.338

$
14.863

$
12.288

$
18.494

Accumulation Unit Value at end of period
$
34.234

$
29.523

$
26.255

$
26.836

$
24.639

$
18.396

$
16.054

$
16.338

$
14.863

$
12.288

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

2

2

2

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.924

$
25.761

$
26.371

$
24.247

$
18.131

$
15.847

$
16.152

$
14.715

$
12.184

$
18.365

Accumulation Unit Value at end of period
$
33.489

$
28.924

$
25.761

$
26.371

$
24.247

$
18.131

$
15.847

$
16.152

$
14.715

$
12.184

Number of Accumulation Units outstanding at end of period (in thousands)
1

—

—

—

—

—

—

—

2

2

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.531

$
25.436

$
26.065

$
23.990

$
17.957

$
15.710

$
16.028

$
14.617

$
12.115

$
—

Accumulation Unit Value at end of period
$
33.002

$
28.531

$
25.436

$
26.065

$
23.990

$
17.957

$
15.710

$
16.028

$
14.617

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
229

252

314

366

471

584

658

800

870

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.337

$
25.276

$
25.913

$
23.862

$
17.870

$
15.642

$
15.967

$
14.568

$
12.081

$
18.237

Accumulation Unit Value at end of period
$
32.760

$
28.337

$
25.276

$
25.913

$
23.862

$
17.870

$
15.642

$
15.967

$
14.568

$
12.081

Number of Accumulation Units outstanding at end of period (in thousands)
15

21

24

32

37

46

59

55

76

98

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.385

$
24.488

$
25.168

$
23.234

$
17.443

$
15.307

$
15.663

$
14.327

$
11.911

$
—

Accumulation Unit Value at end of period
$
31.581

$
27.385

$
24.488

$
25.168

$
23.234

$
17.443

$
15.307

$
15.663

$
14.327

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
66

84

90

106

139

152

210

233

316

—



 
50

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Putnam VT Investors Fund (a)
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.717

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
24.256

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
24.256

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—




 
51

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Templeton Developing Markets VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.882

$
19.611

$
24.570

$
26.988

$
27.447

$
24.434

$
29.251

$
25.062

$
14.598

$
31.104

Accumulation Unit Value at end of period
$
31.879

$
22.882

$
19.611

$
24.570

$
26.988

$
27.447

$
24.434

$
29.251

$
25.062

$
14.598

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

1

1

1

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.164

$
19.034

$
23.895

$
26.299

$
26.800

$
23.906

$
28.677

$
24.619

$
14.368

$
30.676

Accumulation Unit Value at end of period
$
30.818

$
22.164

$
19.034

$
23.895

$
26.299

$
26.800

$
23.906

$
28.677

$
24.619

$
14.368

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

2

2

2

1

1

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.747

$
18.695

$
23.493

$
25.882

$
26.402

$
23.574

$
28.307

$
24.325

$
14.211

$
30.372

Accumulation Unit Value at end of period
$
30.209

$
21.747

$
18.695

$
23.493

$
25.882

$
26.402

$
23.574

$
28.307

$
24.325

$
14.211

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.599

$
18.576

$
23.356

$
25.744

$
26.274

$
23.472

$
28.199

$
24.244

$
14.171

$
30.301

Accumulation Unit Value at end of period
$
29.988

$
21.599

$
18.576

$
23.356

$
25.744

$
26.274

$
23.472

$
28.199

$
24.244

$
14.171

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.137

$
18.206

$
22.925

$
25.307

$
25.867

$
23.143

$
27.845

$
23.976

$
14.035

$
30.056

Accumulation Unit Value at end of period
$
29.302

$
21.137

$
18.206

$
22.925

$
25.307

$
25.867

$
23.143

$
27.845

$
23.976

$
14.035

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.137

$
18.206

$
22.925

$
25.307

$
25.867

$
23.143

$
27.845

$
23.976

$
14.035

$
30.056

Accumulation Unit Value at end of period
$
29.302

$
21.137

$
18.206

$
22.925

$
25.307

$
25.867

$
23.143

$
27.845

$
23.976

$
14.035

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.931

$
15.468

$
19.506

$
21.565

$
22.075

$
19.780

$
23.835

$
20.554

$
12.050

$
25.843

Accumulation Unit Value at end of period
$
24.820

$
17.931

$
15.468

$
19.506

$
21.565

$
22.075

$
19.780

$
23.835

$
20.554

$
12.050

Number of Accumulation Units outstanding at end of period (in thousands)
2

4

4

7

7

7

7

8

8

20

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.228

$
18.330

$
23.139

$
25.608

$
26.240

$
23.535

$
28.388

$
24.505

$
14.380

$
—

Accumulation Unit Value at end of period
$
29.355

$
21.228

$
18.330

$
23.139

$
25.608

$
26.240

$
23.535

$
28.388

$
24.505

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
94

99

106

131

165

241

296

376

414

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.466

$
15.089

$
19.058

$
21.101

$
21.633

$
19.413

$
23.427

$
20.233

$
11.879

$
25.516

Accumulation Unit Value at end of period
$
24.141

$
17.466

$
15.089

$
19.058

$
21.101

$
21.633

$
19.413

$
23.427

$
20.233

$
11.879

Number of Accumulation Units outstanding at end of period (in thousands)
18

18

19

22

25

30

44

68

99

90

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.725

$
14.485

$
18.340

$
20.357

$
20.922

$
18.822

$
22.771

$
19.716

$
11.605

$
—

Accumulation Unit Value at end of period
$
23.058

$
16.725

$
14.485

$
18.340

$
20.357

$
20.922

$
18.822

$
22.771

$
19.716

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
33

42

49

67

71

114

138

176

193

—



 
52

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Templeton Foreign VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.994

$
15.065

$
16.265

$
18.477

$
15.169

$
12.952

$
14.632

$
13.626

$
10.038

$
16.997

Accumulation Unit Value at end of period
$
18.487

$
15.994

$
15.065

$
16.265

$
18.477

$
15.169

$
12.952

$
14.632

$
13.626

$
10.038

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

1

1

1

1

3

4

4

4

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.492

$
14.622

$
15.818

$
18.006

$
14.812

$
12.672

$
14.345

$
13.385

$
9.880

$
16.763

Accumulation Unit Value at end of period
$
17.872

$
15.492

$
14.622

$
15.818

$
18.006

$
14.812

$
12.672

$
14.345

$
13.385

$
9.880

Number of Accumulation Units outstanding at end of period (in thousands)
5

5

5

4

4

5

4

2

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.201

$
14.362

$
15.552

$
17.720

$
14.591

$
12.496

$
14.159

$
13.226

$
9.772

$
16.597

Accumulation Unit Value at end of period
$
17.518

$
15.201

$
14.362

$
15.552

$
17.720

$
14.591

$
12.496

$
14.159

$
13.226

$
9.772

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.097

$
14.271

$
15.461

$
17.626

$
14.521

$
12.442

$
14.105

$
13.182

$
9.744

$
16.558

Accumulation Unit Value at end of period
$
17.390

$
15.097

$
14.271

$
15.461

$
17.626

$
14.521

$
12.442

$
14.105

$
13.182

$
9.744

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.774

$
13.986

$
15.176

$
17.327

$
14.296

$
12.268

$
13.928

$
13.036

$
9.651

$
16.424

Accumulation Unit Value at end of period
$
16.992

$
14.774

$
13.986

$
15.176

$
17.327

$
14.296

$
12.268

$
13.928

$
13.036

$
9.651

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

2

2

3

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.774

$
13.986

$
15.176

$
17.327

$
14.296

$
12.268

$
13.928

$
13.036

$
9.651

$
16.424

Accumulation Unit Value at end of period
$
16.992

$
14.774

$
13.986

$
15.176

$
17.327

$
14.296

$
12.268

$
13.928

$
13.036

$
9.651

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

2

2

3

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.866

$
13.147

$
14.287

$
16.335

$
13.498

$
11.601

$
13.191

$
12.364

$
9.168

$
15.625

Accumulation Unit Value at end of period
$
15.924

$
13.866

$
13.147

$
14.287

$
16.335

$
13.498

$
11.601

$
13.191

$
12.364

$
9.168

Number of Accumulation Units outstanding at end of period (in thousands)
2

2

3

3

2

5

5

6

9

13

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.059

$
12.394

$
13.482

$
15.431

$
12.764

$
10.980

$
12.498

$
11.726

$
8.703

$
—

Accumulation Unit Value at end of period
$
14.983

$
13.059

$
12.394

$
13.482

$
15.431

$
12.764

$
10.980

$
12.498

$
11.726

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
443

514

629

721

870

1,051

1,310

1,625

1,877

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.507

$
12.825

$
13.958

$
15.984

$
13.227

$
11.385

$
12.965

$
12.171

$
9.038

$
15.426

Accumulation Unit Value at end of period
$
15.488

$
13.507

$
12.825

$
13.958

$
15.984

$
13.227

$
11.385

$
12.965

$
12.171

$
9.038

Number of Accumulation Units outstanding at end of period (in thousands)
28

40

48

52

59

85

121

164

268

327

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.934

$
12.311

$
13.432

$
15.420

$
12.793

$
11.039

$
12.602

$
11.860

$
8.829

$
—

Accumulation Unit Value at end of period
$
14.794

$
12.934

$
12.311

$
13.432

$
15.420

$
12.793

$
11.039

$
12.602

$
11.860

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
168

199

230

260

293

403

543

700

825

—



 
53

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Templeton Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.404

$
17.870

$
19.292

$
20.040

$
15.465

$
12.896

$
13.995

$
13.156

$
10.131

$
17.732

Accumulation Unit Value at end of period
$
22.776

$
19.404

$
17.870

$
19.292

$
20.040

$
15.465

$
12.896

$
13.995

$
13.156

$
10.131

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

1

1

3

3

3

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.795

$
17.344

$
18.762

$
19.529

$
15.100

$
12.617

$
13.720

$
12.923

$
9.971

$
17.489

Accumulation Unit Value at end of period
$
22.018

$
18.795

$
17.344

$
18.762

$
19.529

$
15.100

$
12.617

$
13.720

$
12.923

$
9.971

Number of Accumulation Units outstanding at end of period (in thousands)
2

2

2

3

3

3

3

4

4

4

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.442

$
17.035

$
18.446

$
19.219

$
14.876

$
12.442

$
13.543

$
12.769

$
9.862

$
17.315

Accumulation Unit Value at end of period
$
21.582

$
18.442

$
17.035

$
18.446

$
19.219

$
14.876

$
12.442

$
13.543

$
12.769

$
9.862

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

1

1

1

1

With Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.316

$
16.927

$
18.339

$
19.117

$
14.804

$
12.388

$
13.491

$
12.727

$
9.834

$
17.274

Accumulation Unit Value at end of period
$
21.424

$
18.316

$
16.927

$
18.339

$
19.117

$
14.804

$
12.388

$
13.491

$
12.727

$
9.834

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

2

3

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.924

$
16.590

$
18.000

$
18.792

$
14.574

$
12.214

$
13.322

$
12.586

$
9.740

$
17.135

Accumulation Unit Value at end of period
$
20.934

$
17.924

$
16.590

$
18.000

$
18.792

$
14.574

$
12.214

$
13.322

$
12.586

$
9.740

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

1

1

1

1

1

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.924

$
16.590

$
18.000

$
18.792

$
14.574

$
12.214

$
13.322

$
12.586

$
9.740

$
17.135

Accumulation Unit Value at end of period
$
20.934

$
17.924

$
16.590

$
18.000

$
18.792

$
14.574

$
12.214

$
13.322

$
12.586

$
9.740

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

1

1

1

1

1

With MAV/EPB Death Benefit and Principal First (35 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.412

$
15.214

$
16.531

$
17.285

$
13.426

$
11.268

$
12.309

$
11.646

$
9.026

$
15.903

Accumulation Unit Value at end of period
$
19.140

$
16.412

$
15.214

$
16.531

$
17.285

$
13.426

$
11.268

$
12.309

$
11.646

$
9.026

Number of Accumulation Units outstanding at end of period (in thousands)
4

5

4

6

6

7

7

7

8

22

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.938

$
14.789

$
16.086

$
16.836

$
13.090

$
10.997

$
12.025

$
11.389

$
8.836

$
—

Accumulation Unit Value at end of period
$
18.568

$
15.938

$
14.789

$
16.086

$
16.836

$
13.090

$
10.997

$
12.025

$
11.389

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
647

759

915

1,121

1,364

1,931

2,394

3,127

3,809

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.987

$
14.842

$
16.151

$
16.913

$
13.156

$
11.059

$
12.098

$
11.464

$
8.899

$
15.701

Accumulation Unit Value at end of period
$
18.616

$
15.987

$
14.842

$
16.151

$
16.913

$
13.156

$
11.059

$
12.098

$
11.464

$
8.899

Number of Accumulation Units outstanding at end of period (in thousands)
92

105

131

151

206

265

344

464

612

853

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.308

$
14.247

$
15.543

$
16.317

$
12.724

$
10.722

$
11.760

$
11.171

$
8.693

$
—

Accumulation Unit Value at end of period
$
17.781

$
15.308

$
14.247

$
15.543

$
16.317

$
12.724

$
10.722

$
11.760

$
11.171

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
189

225

272

332

402

493

689

875

1,050

—




54
 

Series III
Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Asset Allocation Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.149

$
22.261

$
22.141

$
21.187

$
17.275

$
14.995

$
14.929

$
13.383

$
10.886

$
15.576

Accumulation Unit Value at end of period
$
27.831

$
24.149

$
22.261

$
22.141

$
21.187

$
17.275

$
14.995

$
14.929

$
13.383

$
10.886

Number of Accumulation Units outstanding at end of period (in thousands)
4

4

6

11

11

11

13

20

28

32

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.553

$
19.907

$
19.840

$
19.023

$
15.542

$
13.517

$
13.485

$
12.113

$
9.873

$
14.154

Accumulation Unit Value at end of period
$
24.790

$
21.553

$
19.907

$
19.840

$
19.023

$
15.542

$
13.517

$
13.485

$
12.113

$
9.873

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.517

$
21.743

$
21.691

$
20.819

$
17.026

$
14.823

$
14.803

$
13.309

$
10.859

$
15.583

Accumulation Unit Value at end of period
$
27.022

$
23.517

$
21.743

$
21.691

$
20.819

$
17.026

$
14.823

$
14.803

$
13.309

$
10.859

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

2

2

2

3

4

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.762

$
21.087

$
21.078

$
20.271

$
16.611

$
14.491

$
14.500

$
13.063

$
10.679

$
15.357

Accumulation Unit Value at end of period
$
26.101

$
22.762

$
21.087

$
21.078

$
20.271

$
16.611

$
14.491

$
14.500

$
13.063

$
10.679

Number of Accumulation Units outstanding at end of period (in thousands)
945

1,092

1,319

1,795

2,137

2,817

3,385

3,878

4,086

4,611

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.762

$
21.087

$
21.078

$
20.271

$
16.611

$
14.491

$
14.500

$
13.063

$
10.679

$
15.357

Accumulation Unit Value at end of period
$
26.101

$
22.762

$
21.087

$
21.078

$
20.271

$
16.611

$
14.491

$
14.500

$
13.063

$
10.679

Number of Accumulation Units outstanding at end of period (in thousands)
945

1,092

1,319

1,795

2,137

2,817

3,385

3,878

4,086

4,611

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.201

$
18.762

$
18.801

$
18.126

$
14.891

$
13.023

$
13.063

$
11.798

$
9.670

$
—

Accumulation Unit Value at end of period
$
23.107

$
20.201

$
18.762

$
18.801

$
18.126

$
14.891

$
13.023

$
13.063

$
11.798

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
36

51

57

82

88

101

115

122

134

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.962

$
18.549

$
18.597

$
17.939

$
14.744

$
12.901

$
12.947

$
11.700

$
9.593

$
13.836

Accumulation Unit Value at end of period
$
22.822

$
19.962

$
18.549

$
18.597

$
17.939

$
14.744

$
12.901

$
12.947

$
11.700

$
9.593

Number of Accumulation Units outstanding at end of period (in thousands)
522

577

637

724

953

1,180

1,527

1,715

1,909

2,218

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.654

$
18.308

$
18.402

$
17.795

$
14.662

$
12.861

$
12.940

$
11.722

$
9.636

$
—

Accumulation Unit Value at end of period
$
22.414

$
19.654

$
18.308

$
18.402

$
17.795

$
14.662

$
12.861

$
12.940

$
11.722

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
114

135

186

224

299

438

512

680

885

—



 
55

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Blue Chip Income and Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.105

$
1.788

$
1.858

$
1.624

$
1.232

$
1.091

$
1.110

$
0.997

$
0.786

$
1.248

Accumulation Unit Value at end of period
$
2.442

$
2.105

$
1.788

$
1.858

$
1.624

$
1.232

$
1.091

$
1.110

$
0.997

$
0.786

Number of Accumulation Units outstanding at end of period (in thousands)
83

115

128

154

190

298

346

270

230

263

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.039

$
1.736

$
1.807

$
1.583

$
1.203

$
1.067

$
1.088

$
0.979

$
0.773

$
1.231

Accumulation Unit Value at end of period
$
2.361

$
2.039

$
1.736

$
1.807

$
1.583

$
1.203

$
1.067

$
1.088

$
0.979

$
0.773

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

9

9

9

9

9

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.044

$
1.742

$
1.815

$
1.592

$
1.211

$
1.075

$
1.098

$
0.989

$
0.781

$
1.245

Accumulation Unit Value at end of period
$
2.365

$
2.044

$
1.742

$
1.815

$
1.592

$
1.211

$
1.075

$
1.098

$
0.989

$
0.781

Number of Accumulation Units outstanding at end of period (in thousands)
99

109

119

124

150

135

118

127

182

194

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.984

$
1.694

$
1.769

$
1.554

$
1.184

$
1.054

$
1.078

$
0.973

$
0.771

$
1.230

Accumulation Unit Value at end of period
$
2.291

$
1.984

$
1.694

$
1.769

$
1.554

$
1.184

$
1.054

$
1.078

$
0.973

$
0.771

Number of Accumulation Units outstanding at end of period (in thousands)
5,433

6,412

6,922

8,928

10,115

13,860

16,931

18,542

20,077

21,874

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.984

$
1.694

$
1.769

$
1.554

$
1.184

$
1.054

$
1.078

$
0.973

$
0.771

$
1.230

Accumulation Unit Value at end of period
$
2.291

$
1.984

$
1.694

$
1.769

$
1.554

$
1.184

$
1.054

$
1.078

$
0.973

$
0.771

Number of Accumulation Units outstanding at end of period (in thousands)
5,433

6,412

6,922

8,928

10,115

13,860

16,931

18,542

20,077

21,874

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.907

$
1.632

$
1.709

$
1.505

$
1.150

$
1.026

$
1.052

$
0.952

$
0.756

$
—

Accumulation Unit Value at end of period
$
2.196

$
1.907

$
1.632

$
1.709

$
1.505

$
1.150

$
1.026

$
1.052

$
0.952

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
325

297

305

318

321

331

330

345

418

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.892

$
1.620

$
1.697

$
1.496

$
1.143

$
1.020

$
1.047

$
0.948

$
0.753

$
1.205

Accumulation Unit Value at end of period
$
2.178

$
1.892

$
1.620

$
1.697

$
1.496

$
1.143

$
1.020

$
1.047

$
0.948

$
0.753

Number of Accumulation Units outstanding at end of period (in thousands)
2,455

2,803

3,110

3,688

4,564

5,334

7,376

9,486

10,780

12,482

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.820

$
1.563

$
1.641

$
1.450

$
1.111

$
0.994

$
1.022

$
0.928

$
0.739

$
—

Accumulation Unit Value at end of period
$
2.090

$
1.820

$
1.563

$
1.641

$
1.450

$
1.111

$
0.994

$
1.022

$
0.928

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
567

625

735

964

1,444

2,437

2,977

4,220

5,357

—



56
 

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Bond Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.669

$
17.310

$
17.410

$
16.679

$
17.192

$
16.455

$
15.641

$
14.819

$
13.273

$
14.766

Accumulation Unit Value at end of period
$
18.162

$
17.669

$
17.310

$
17.410

$
16.679

$
17.192

$
16.455

$
15.641

$
14.819

$
13.273

Number of Accumulation Units outstanding at end of period (in thousands)
60

69

72

78

89

74

77

85

81

68

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.824

$
16.516

$
16.644

$
15.977

$
16.502

$
15.825

$
15.072

$
14.309

$
12.842

$
14.315

Accumulation Unit Value at end of period
$
17.259

$
16.824

$
16.516

$
16.644

$
15.977

$
16.502

$
15.825

$
15.072

$
14.309

$
12.842

Number of Accumulation Units outstanding at end of period (in thousands)
2

2

2

2

2

2

2

2

2

2

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.207

$
16.908

$
17.057

$
16.389

$
16.944

$
16.266

$
15.508

$
14.737

$
13.239

$
14.773

Accumulation Unit Value at end of period
$
17.633

$
17.207

$
16.908

$
17.057

$
16.389

$
16.944

$
16.266

$
15.508

$
14.737

$
13.239

Number of Accumulation Units outstanding at end of period (in thousands)
27

31

32

34

33

29

24

25

24

21

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.654

$
16.397

$
16.575

$
15.958

$
16.532

$
15.902

$
15.191

$
14.465

$
13.020

$
14.558

Accumulation Unit Value at end of period
$
17.033

$
16.654

$
16.397

$
16.575

$
15.958

$
16.532

$
15.902

$
15.191

$
14.465

$
13.020

Number of Accumulation Units outstanding at end of period (in thousands)
2,132

2,303

2,603

3,230

4,234

3,471

3,785

4,248

4,384

4,413

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.654

$
16.397

$
16.575

$
15.958

$
16.532

$
15.902

$
15.191

$
14.465

$
13.020

$
14.558

Accumulation Unit Value at end of period
$
17.033

$
16.654

$
16.397

$
16.575

$
15.958

$
16.532

$
15.902

$
15.191

$
14.465

$
13.020

Number of Accumulation Units outstanding at end of period (in thousands)
2,132

2,303

2,603

3,230

4,234

3,471

3,785

4,248

4,384

4,413

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.769

$
15.565

$
15.773

$
15.224

$
15.811

$
15.246

$
14.601

$
13.938

$
12.578

$
—

Accumulation Unit Value at end of period
$
16.088

$
15.769

$
15.565

$
15.773

$
15.224

$
15.811

$
15.246

$
14.601

$
13.938

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
35

33

38

40

41

50

65

66

73

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.582

$
15.389

$
15.602

$
15.066

$
15.655

$
15.103

$
14.472

$
13.822

$
12.478

$
13.994

Accumulation Unit Value at end of period
$
15.889

$
15.582

$
15.389

$
15.602

$
15.066

$
15.655

$
15.103

$
14.472

$
13.822

$
12.478

Number of Accumulation Units outstanding at end of period (in thousands)
532

545

617

738

959

1,166

1,373

1,644

1,967

1,901

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.476

$
14.332

$
14.567

$
14.102

$
14.689

$
14.207

$
13.647

$
13.067

$
11.826

$
—

Accumulation Unit Value at end of period
$
14.724

$
14.476

$
14.332

$
14.567

$
14.102

$
14.689

$
14.207

$
13.647

$
13.067

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
85

103

123

154

219

393

386

515

624

—



 
57

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Global Bond Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.233

$
12.993

$
13.659

$
13.587

$
14.066

$
13.358

$
12.887

$
12.351

$
11.356

$
11.067

Accumulation Unit Value at end of period
$
14.020

$
13.233

$
12.993

$
13.659

$
13.587

$
14.066

$
13.358

$
12.887

$
12.351

$
11.356

Number of Accumulation Units outstanding at end of period (in thousands)
10

15

17

24

33

31

34

39

42

32

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.964

$
12.755

$
13.436

$
13.392

$
13.891

$
13.219

$
12.779

$
12.271

$
11.305

$
11.040

Accumulation Unit Value at end of period
$
13.708

$
12.964

$
12.755

$
13.436

$
13.392

$
13.891

$
13.219

$
12.779

$
12.271

$
11.305

Number of Accumulation Units outstanding at end of period (in thousands)
1

2

2

2

2

2

2

2

2

2

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.832

$
12.638

$
13.326

$
13.295

$
13.805

$
13.150

$
12.725

$
12.232

$
11.280

$
11.026

Accumulation Unit Value at end of period
$
13.555

$
12.832

$
12.638

$
13.326

$
13.295

$
13.805

$
13.150

$
12.725

$
12.232

$
11.280

Number of Accumulation Units outstanding at end of period (in thousands)
5

5

5

5

2

3

2

3

2

2

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.572

$
12.406

$
13.108

$
13.104

$
13.633

$
13.013

$
12.617

$
12.153

$
11.229

$
10.999

Accumulation Unit Value at end of period
$
13.254

$
12.572

$
12.406

$
13.108

$
13.104

$
13.633

$
13.013

$
12.617

$
12.153

$
11.229

Number of Accumulation Units outstanding at end of period (in thousands)
427

481

545

800

1,017

1,461

1,586

1,591

1,607

1,775

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.572

$
12.406

$
13.108

$
13.104

$
13.633

$
13.013

$
12.617

$
12.153

$
11.229

$
10.999

Accumulation Unit Value at end of period
$
13.254

$
12.572

$
12.406

$
13.108

$
13.104

$
13.633

$
13.013

$
12.617

$
12.153

$
11.229

Number of Accumulation Units outstanding at end of period (in thousands)
427

481

545

800

1,017

1,461

1,586

1,591

1,607

1,775

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.254

$
12.123

$
12.840

$
12.869

$
13.422

$
12.843

$
12.484

$
12.055

$
11.167

$
—

Accumulation Unit Value at end of period
$
12.886

$
12.254

$
12.123

$
12.840

$
12.869

$
13.422

$
12.843

$
12.484

$
12.055

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
3

3

5

5

2

7

8

7

5

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.192

$
12.067

$
12.788

$
12.822

$
13.381

$
12.810

$
12.458

$
12.035

$
11.154

$
10.958

Accumulation Unit Value at end of period
$
12.814

$
12.192

$
12.067

$
12.788

$
12.822

$
13.381

$
12.810

$
12.458

$
12.035

$
11.154

Number of Accumulation Units outstanding at end of period (in thousands)
83

99

106

145

205

291

362

390

430

397

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.884

$
11.791

$
12.527

$
12.592

$
13.173

$
12.643

$
12.326

$
11.938

$
11.092

$
—

Accumulation Unit Value at end of period
$
12.459

$
11.884

$
11.791

$
12.527

$
12.592

$
13.173

$
12.643

$
12.326

$
11.938

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
27

27

31

41

70

108

124

155

163

—



58
 

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Global Growth and Income Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.983

$
15.016

$
15.350

$
14.655

$
12.062

$
10.348

$
10.969

$
9.896

$
7.143

$
12.246

Accumulation Unit Value at end of period
$
19.978

$
15.983

$
15.016

$
15.350

$
14.655

$
12.062

$
10.348

$
10.969

$
9.896

$
7.143

Number of Accumulation Units outstanding at end of period (in thousands)
16

20

22

30

41

59

76

85

90

95

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.643

$
14.727

$
15.084

$
14.430

$
11.900

$
10.230

$
10.865

$
9.822

$
7.104

$
12.203

Accumulation Unit Value at end of period
$
19.515

$
15.643

$
14.727

$
15.084

$
14.430

$
11.900

$
10.230

$
10.865

$
9.822

$
7.104

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

1

1

1

1

1

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.476

$
14.584

$
14.953

$
14.319

$
11.821

$
10.171

$
10.814

$
9.786

$
7.085

$
12.182

Accumulation Unit Value at end of period
$
19.287

$
15.476

$
14.584

$
14.953

$
14.319

$
11.821

$
10.171

$
10.814

$
9.786

$
7.085

Number of Accumulation Units outstanding at end of period (in thousands)
7

8

8

9

11

11

17

20

17

16

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.147

$
14.302

$
14.694

$
14.099

$
11.662

$
10.055

$
10.712

$
9.713

$
7.046

$
12.140

Accumulation Unit Value at end of period
$
18.839

$
15.147

$
14.302

$
14.694

$
14.099

$
11.662

$
10.055

$
10.712

$
9.713

$
7.046

Number of Accumulation Units outstanding at end of period (in thousands)
608

754

879

1,140

1,482

2,392

2,796

3,098

3,393

3,664

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.147

$
14.302

$
14.694

$
14.099

$
11.662

$
10.055

$
10.712

$
9.713

$
7.046

$
12.140

Accumulation Unit Value at end of period
$
18.839

$
15.147

$
14.302

$
14.694

$
14.099

$
11.662

$
10.055

$
10.712

$
9.713

$
7.046

Number of Accumulation Units outstanding at end of period (in thousands)
608

754

879

1,140

1,482

2,392

2,796

3,098

3,393

3,664

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.746

$
13.958

$
14.376

$
13.828

$
11.467

$
9.912

$
10.586

$
9.622

$
6.998

$
—

Accumulation Unit Value at end of period
$
18.295

$
14.746

$
13.958

$
14.376

$
13.828

$
11.467

$
9.912

$
10.586

$
9.622

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

2

2

3

3

1

3

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.667

$
13.891

$
14.314

$
13.775

$
11.429

$
9.884

$
10.561

$
9.604

$
6.988

$
12.076

Accumulation Unit Value at end of period
$
18.187

$
14.667

$
13.891

$
14.314

$
13.775

$
11.429

$
9.884

$
10.561

$
9.604

$
6.988

Number of Accumulation Units outstanding at end of period (in thousands)
157

174

204

245

305

364

462

522

566

543

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.278

$
13.556

$
14.004

$
13.511

$
11.238

$
9.743

$
10.436

$
9.515

$
6.941

$
—

Accumulation Unit Value at end of period
$
17.661

$
14.278

$
13.556

$
14.004

$
13.511

$
11.238

$
9.743

$
10.436

$
9.515

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
23

24

28

33

56

87

112

156

172

—




 
59

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Global Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.031

$
26.092

$
24.607

$
24.256

$
18.938

$
15.583

$
17.249

$
15.568

$
11.033

$
18.061

Accumulation Unit Value at end of period
$
33.934

$
26.031

$
26.092

$
24.607

$
24.256

$
18.938

$
15.583

$
17.249

$
15.568

$
11.033

Number of Accumulation Units outstanding at end of period (in thousands)
5

4

4

6

9

10

11

12

12

12

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.496

$
25.606

$
24.198

$
23.900

$
18.697

$
15.416

$
17.098

$
15.463

$
10.981

$
18.011

Accumulation Unit Value at end of period
$
33.170

$
25.496

$
25.606

$
24.198

$
23.900

$
18.697

$
15.416

$
17.098

$
15.463

$
10.981

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

1

1

1

1

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.350

$
25.485

$
24.107

$
23.835

$
18.664

$
15.405

$
17.103

$
15.482

$
11.005

$
18.069

Accumulation Unit Value at end of period
$
32.946

$
25.350

$
25.485

$
24.107

$
23.835

$
18.664

$
15.405

$
17.103

$
15.482

$
11.005

Number of Accumulation Units outstanding at end of period (in thousands)
5

5

6

6

7

6

7

13

14

15

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.535

$
24.715

$
23.426

$
23.208

$
18.210

$
15.059

$
16.753

$
15.196

$
10.823

$
17.807

Accumulation Unit Value at end of period
$
31.824

$
24.535

$
24.715

$
23.426

$
23.208

$
18.210

$
15.059

$
16.753

$
15.196

$
10.823

Number of Accumulation Units outstanding at end of period (in thousands)
292

351

425

529

695

953

1,086

1,202

1,294

1,395

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.535

$
24.715

$
23.426

$
23.208

$
18.210

$
15.059

$
16.753

$
15.196

$
10.823

$
17.807

Accumulation Unit Value at end of period
$
31.824

$
24.535

$
24.715

$
23.426

$
23.208

$
18.210

$
15.059

$
16.753

$
15.196

$
10.823

Number of Accumulation Units outstanding at end of period (in thousands)
292

351

425

529

695

953

1,086

1,202

1,294

1,395

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.897

$
24.132

$
22.931

$
22.774

$
17.914

$
14.852

$
16.564

$
15.061

$
10.755

$
—

Accumulation Unit Value at end of period
$
30.919

$
23.897

$
24.132

$
22.931

$
22.774

$
17.914

$
14.852

$
16.564

$
15.061

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
11

11

11

14

18

19

19

21

24

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.614

$
23.859

$
22.682

$
22.538

$
17.737

$
14.713

$
16.417

$
14.935

$
10.670

$
17.607

Accumulation Unit Value at end of period
$
30.537

$
23.614

$
23.859

$
22.682

$
22.538

$
17.737

$
14.713

$
16.417

$
14.935

$
10.670

Number of Accumulation Units outstanding at end of period (in thousands)
125

140

151

185

220

301

388

496

600

673

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.707

$
17.935

$
17.094

$
17.028

$
13.434

$
11.171

$
12.496

$
11.397

$
8.163

$
—

Accumulation Unit Value at end of period
$
22.842

$
17.707

$
17.935

$
17.094

$
17.028

$
13.434

$
11.171

$
12.496

$
11.397

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
28

34

49

65

87

119

148

218

327

—



 
60

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Global Small Capitalization Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.421

$
26.099

$
26.252

$
25.926

$
20.383

$
17.395

$
21.698

$
17.876

$
11.177

$
24.254

Accumulation Unit Value at end of period
$
32.982

$
26.421

$
26.099

$
26.252

$
25.926

$
20.383

$
17.395

$
21.698

$
17.876

$
11.177

Number of Accumulation Units outstanding at end of period (in thousands)
4

4

5

6

8

8

10

11

13

13

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.248

$
26.970

$
27.182

$
26.898

$
21.190

$
18.120

$
22.647

$
18.695

$
11.713

$
25.467

Accumulation Unit Value at end of period
$
33.946

$
27.248

$
26.970

$
27.182

$
26.898

$
21.190

$
18.120

$
22.647

$
18.695

$
11.713

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.729

$
25.492

$
25.719

$
25.475

$
20.089

$
17.195

$
21.513

$
17.777

$
11.149

$
24.265

Accumulation Unit Value at end of period
$
32.022

$
25.729

$
25.492

$
25.719

$
25.475

$
20.089

$
17.195

$
21.513

$
17.777

$
11.149

Number of Accumulation Units outstanding at end of period (in thousands)
1

2

2

2

2

2

3

2

1

1

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.903

$
24.722

$
24.992

$
24.805

$
19.600

$
16.810

$
21.073

$
17.449

$
10.965

$
23.912

Accumulation Unit Value at end of period
$
30.931

$
24.903

$
24.722

$
24.992

$
24.805

$
19.600

$
16.810

$
21.073

$
17.449

$
10.965

Number of Accumulation Units outstanding at end of period (in thousands)
201

247

295

379

516

593

699

839

944

906

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.903

$
24.722

$
24.992

$
24.805

$
19.600

$
16.810

$
21.073

$
17.449

$
10.965

$
23.912

Accumulation Unit Value at end of period
$
30.931

$
24.903

$
24.722

$
24.992

$
24.805

$
19.600

$
16.810

$
21.073

$
17.449

$
10.965

Number of Accumulation Units outstanding at end of period (in thousands)
201

247

295

379

516

593

699

839

944

906

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.539

$
25.417

$
25.759

$
25.630

$
20.302

$
17.456

$
21.938

$
18.210

$
11.472

$
—

Accumulation Unit Value at end of period
$
31.642

$
25.539

$
25.417

$
25.759

$
25.630

$
20.302

$
17.456

$
21.938

$
18.210

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

3

2

3

5

7

8

15

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.236

$
25.129

$
25.479

$
25.365

$
20.102

$
17.293

$
21.743

$
18.057

$
11.381

$
24.896

Accumulation Unit Value at end of period
$
31.251

$
25.236

$
25.129

$
25.479

$
25.365

$
20.102

$
17.293

$
21.743

$
18.057

$
11.381

Number of Accumulation Units outstanding at end of period (in thousands)
78

85

94

113

132

184

222

277

301

326

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.001

$
17.969

$
18.265

$
18.229

$
14.483

$
12.490

$
15.744

$
13.108

$
8.282

$
—

Accumulation Unit Value at end of period
$
22.236

$
18.001

$
17.969

$
18.265

$
18.229

$
14.483

$
12.490

$
15.744

$
13.108

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
13

18

24

35

43

57

85

192

236

—



 
61

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.912

$
24.790

$
23.397

$
21.746

$
16.857

$
14.421

$
15.194

$
12.912

$
9.341

$
16.813

Accumulation Unit Value at end of period
$
34.233

$
26.912

$
24.790

$
23.397

$
21.746

$
16.857

$
14.421

$
15.194

$
12.912

$
9.341

Number of Accumulation Units outstanding at end of period (in thousands)
26

29

32

37

43

51

62

67

72

74

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.201

$
23.260

$
21.997

$
20.486

$
15.912

$
13.640

$
14.400

$
12.261

$
8.888

$
16.031

Accumulation Unit Value at end of period
$
31.993

$
25.201

$
23.260

$
21.997

$
20.486

$
15.912

$
13.640

$
14.400

$
12.261

$
8.888

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

1

1

1

4

4

4

4

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.207

$
24.213

$
22.921

$
21.368

$
16.614

$
14.256

$
15.065

$
12.840

$
9.317

$
16.821

Accumulation Unit Value at end of period
$
33.237

$
26.207

$
24.213

$
22.921

$
21.368

$
16.614

$
14.256

$
15.065

$
12.840

$
9.317

Number of Accumulation Units outstanding at end of period (in thousands)
13

16

17

18

19

22

23

22

22

23

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.365

$
23.482

$
22.273

$
20.806

$
16.209

$
13.936

$
14.757

$
12.603

$
9.163

$
16.576

Accumulation Unit Value at end of period
$
32.105

$
25.365

$
23.482

$
22.273

$
20.806

$
16.209

$
13.936

$
14.757

$
12.603

$
9.163

Number of Accumulation Units outstanding at end of period (in thousands)
2,434

2,845

3,436

4,485

5,898

8,760

10,178

11,618

12,649

13,570

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.365

$
23.482

$
22.273

$
20.806

$
16.209

$
13.936

$
14.757

$
12.603

$
9.163

$
16.576

Accumulation Unit Value at end of period
$
32.105

$
25.365

$
23.482

$
22.273

$
20.806

$
16.209

$
13.936

$
14.757

$
12.603

$
9.163

Number of Accumulation Units outstanding at end of period (in thousands)
2,434

2,845

3,436

4,485

5,898

8,760

10,178

11,618

12,649

13,570

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.620

$
21.921

$
20.845

$
19.521

$
15.246

$
13.141

$
13.949

$
11.943

$
8.705

$
—

Accumulation Unit Value at end of period
$
29.822

$
23.620

$
21.921

$
20.845

$
19.521

$
15.246

$
13.141

$
13.949

$
11.943

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
58

93

102

114

120

141

170

194

214

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.341

$
21.673

$
20.619

$
19.318

$
15.096

$
13.018

$
13.826

$
11.843

$
8.636

$
15.671

Accumulation Unit Value at end of period
$
29.454

$
23.341

$
21.673

$
20.619

$
19.318

$
15.096

$
13.018

$
13.826

$
11.843

$
8.636

Number of Accumulation Units outstanding at end of period (in thousands)
949

1,089

1,227

1,552

1,942

2,509

3,124

3,760

4,365

4,925

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.680

$
14.596

$
13.921

$
13.075

$
10.243

$
8.855

$
9.428

$
8.096

$
5.919

$
—

Accumulation Unit Value at end of period
$
19.737

$
15.680

$
14.596

$
13.921

$
13.075

$
10.243

$
8.855

$
9.428

$
8.096

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
241

287

389

504

735

1,188

1,412

2,089

2,593

—



 
62

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds Growth-Income Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.766

$
24.205

$
24.062

$
21.935

$
16.571

$
14.225

$
14.614

$
13.227

$
10.165

$
16.494

Accumulation Unit Value at end of period
$
32.479

$
26.766

$
24.205

$
24.062

$
21.935

$
16.571

$
14.225

$
14.614

$
13.227

$
10.165

Number of Accumulation Units outstanding at end of period (in thousands)
24

30

32

34

42

53

63

80

84

85

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.161

$
20.988

$
20.905

$
19.095

$
14.454

$
12.433

$
12.799

$
11.608

$
8.938

$
14.533

Accumulation Unit Value at end of period
$
28.049

$
23.161

$
20.988

$
20.905

$
19.095

$
14.454

$
12.433

$
12.799

$
11.608

$
8.938

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

1

1

1

4

4

4

4

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.065

$
23.642

$
23.573

$
21.553

$
16.331

$
14.062

$
14.490

$
13.154

$
10.139

$
16.502

Accumulation Unit Value at end of period
$
31.534

$
26.065

$
23.642

$
23.573

$
21.553

$
16.331

$
14.062

$
14.490

$
13.154

$
10.139

Number of Accumulation Units outstanding at end of period (in thousands)
3

5

6

6

7

11

13

17

19

19

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.227

$
22.928

$
22.907

$
20.986

$
15.934

$
13.747

$
14.194

$
12.911

$
9.971

$
16.262

Accumulation Unit Value at end of period
$
30.460

$
25.227

$
22.928

$
22.907

$
20.986

$
15.934

$
13.747

$
14.194

$
12.911

$
9.971

Number of Accumulation Units outstanding at end of period (in thousands)
2,276

2,667

3,184

4,139

5,537

8,158

9,685

10,835

11,645

12,552

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.227

$
22.928

$
22.907

$
20.986

$
15.934

$
13.747

$
14.194

$
12.911

$
9.971

$
16.262

Accumulation Unit Value at end of period
$
30.460

$
25.227

$
22.928

$
22.907

$
20.986

$
15.934

$
13.747

$
14.194

$
12.911

$
9.971

Number of Accumulation Units outstanding at end of period (in thousands)
2,276

2,667

3,184

4,139

5,537

8,158

9,685

10,835

11,645

12,552

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.709

$
19.780

$
19.811

$
18.195

$
13.849

$
11.978

$
12.399

$
11.306

$
8.754

$
—

Accumulation Unit Value at end of period
$
26.146

$
21.709

$
19.780

$
19.811

$
18.195

$
13.849

$
11.978

$
12.399

$
11.306

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
106

142

150

161

172

191

222

254

282

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.452

$
19.555

$
19.596

$
18.007

$
13.713

$
11.866

$
12.289

$
11.212

$
8.685

$
14.207

Accumulation Unit Value at end of period
$
25.823

$
21.452

$
19.555

$
19.596

$
18.007

$
13.713

$
11.866

$
12.289

$
11.212

$
8.685

Number of Accumulation Units outstanding at end of period (in thousands)
921

1,069

1,195

1,498

1,910

2,513

3,189

3,772

4,420

5,153

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.944

$
19.140

$
19.228

$
17.713

$
13.522

$
11.731

$
12.179

$
11.139

$
8.651

$
—

Accumulation Unit Value at end of period
$
25.149

$
20.944

$
19.140

$
19.228

$
17.713

$
13.522

$
11.731

$
12.179

$
11.139

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
192

232

316

403

575

922

1,069

1,319

1,655

—



 
63

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds International Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.277

$
17.805

$
18.808

$
19.485

$
16.156

$
13.819

$
16.200

$
15.236

$
10.740

$
18.715

Accumulation Unit Value at end of period
$
23.948

$
18.277

$
17.805

$
18.808

$
19.485

$
16.156

$
13.819

$
16.200

$
15.236

$
10.740

Number of Accumulation Units outstanding at end of period (in thousands)
27

36

37

38

38

35

39

37

41

36

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.692

$
18.245

$
19.312

$
20.047

$
16.656

$
14.275

$
16.767

$
15.801

$
11.161

$
19.488

Accumulation Unit Value at end of period
$
24.443

$
18.692

$
18.245

$
19.312

$
20.047

$
16.656

$
14.275

$
16.767

$
15.801

$
11.161

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.799

$
17.390

$
18.425

$
19.147

$
15.923

$
13.661

$
16.062

$
15.152

$
10.713

$
18.724

Accumulation Unit Value at end of period
$
23.251

$
17.799

$
17.390

$
18.425

$
19.147

$
15.923

$
13.661

$
16.062

$
15.152

$
10.713

Number of Accumulation Units outstanding at end of period (in thousands)
11

14

15

14

14

17

14

11

13

14

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.227

$
16.865

$
17.905

$
18.643

$
15.535

$
13.355

$
15.734

$
14.872

$
10.536

$
18.452

Accumulation Unit Value at end of period
$
22.459

$
17.227

$
16.865

$
17.905

$
18.643

$
15.535

$
13.355

$
15.734

$
14.872

$
10.536

Number of Accumulation Units outstanding at end of period (in thousands)
870

1,050

1,228

1,572

1,986

2,618

3,099

3,461

3,640

4,004

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.227

$
16.865

$
17.905

$
18.643

$
15.535

$
13.355

$
15.734

$
14.872

$
10.536

$
18.452

Accumulation Unit Value at end of period
$
22.459

$
17.227

$
16.865

$
17.905

$
18.643

$
15.535

$
13.355

$
15.734

$
14.872

$
10.536

Number of Accumulation Units outstanding at end of period (in thousands)
870

1,050

1,228

1,572

1,986

2,618

3,099

3,461

3,640

4,004

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.519

$
17.195

$
18.300

$
19.102

$
15.958

$
13.753

$
16.243

$
15.391

$
10.931

$
—

Accumulation Unit Value at end of period
$
22.784

$
17.519

$
17.195

$
18.300

$
19.102

$
15.958

$
13.753

$
16.243

$
15.391

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
6

7

12

23

26

35

45

60

67

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.312

$
17.000

$
18.102

$
18.904

$
15.800

$
13.624

$
16.099

$
15.262

$
10.845

$
19.051

Accumulation Unit Value at end of period
$
22.503

$
17.312

$
17.000

$
18.102

$
18.904

$
15.800

$
13.624

$
16.099

$
15.262

$
10.845

Number of Accumulation Units outstanding at end of period (in thousands)
261

300

335

393

498

739

906

1,041

1,188

1,432

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.749

$
12.551

$
13.398

$
14.027

$
11.753

$
10.159

$
12.035

$
11.438

$
8.148

$
—

Accumulation Unit Value at end of period
$
16.531

$
12.749

$
12.551

$
13.398

$
14.027

$
11.753

$
10.159

$
12.035

$
11.438

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
80

88

111

128

172

238

296

408

483

—




 
64

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
American Funds New World Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.807

$
29.518

$
30.737

$
33.648

$
30.468

$
26.080

$
30.566

$
26.153

$
17.625

$
30.846

Accumulation Unit Value at end of period
$
39.541

$
30.807

$
29.518

$
30.737

$
33.648

$
30.468

$
26.080

$
30.566

$
26.153

$
17.625

Number of Accumulation Units outstanding at end of period (in thousands)
3

2

2

3

3

4

5

7

7

7

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.272

$
27.143

$
28.320

$
31.064

$
28.185

$
24.174

$
28.389

$
24.338

$
16.435

$
28.822

Accumulation Unit Value at end of period
$
36.214

$
28.272

$
27.143

$
28.320

$
31.064

$
28.185

$
24.174

$
28.389

$
24.338

$
16.435

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.001

$
28.832

$
30.112

$
33.063

$
30.029

$
25.781

$
30.307

$
26.008

$
17.580

$
30.861

Accumulation Unit Value at end of period
$
38.390

$
30.001

$
28.832

$
30.112

$
33.063

$
30.029

$
25.781

$
30.307

$
26.008

$
17.580

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

2

4

4

2

2

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
29.037

$
27.961

$
29.261

$
32.193

$
29.297

$
25.204

$
29.687

$
25.527

$
17.290

$
30.412

Accumulation Unit Value at end of period
$
37.083

$
29.037

$
27.961

$
29.261

$
32.193

$
29.297

$
25.204

$
29.687

$
25.527

$
17.290

Number of Accumulation Units outstanding at end of period (in thousands)
160

194

235

286

378

552

639

775

776

787

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
29.037

$
27.961

$
29.261

$
32.193

$
29.297

$
25.204

$
29.687

$
25.527

$
17.290

$
30.412

Accumulation Unit Value at end of period
$
37.083

$
29.037

$
27.961

$
29.261

$
32.193

$
29.297

$
25.204

$
29.687

$
25.527

$
17.290

Number of Accumulation Units outstanding at end of period (in thousands)
160

194

235

286

378

552

639

775

776

787

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.498

$
25.581

$
26.837

$
29.600

$
27.005

$
23.290

$
27.501

$
23.707

$
16.097

$
—

Accumulation Unit Value at end of period
$
33.756

$
26.498

$
25.581

$
26.837

$
29.600

$
27.005

$
23.290

$
27.501

$
23.707

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

1

1

6

6

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.184

$
25.290

$
26.546

$
29.293

$
26.738

$
23.071

$
27.257

$
23.509

$
15.970

$
28.176

Accumulation Unit Value at end of period
$
33.340

$
26.184

$
25.290

$
26.546

$
29.293

$
26.738

$
23.071

$
27.257

$
23.509

$
15.970

Number of Accumulation Units outstanding at end of period (in thousands)
41

44

58

80

99

147

186

220

237

236

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.837

$
23.081

$
24.288

$
26.868

$
24.586

$
21.268

$
25.189

$
21.779

$
14.832

$
—

Accumulation Unit Value at end of period
$
30.276

$
23.837

$
23.081

$
24.288

$
26.868

$
24.586

$
21.268

$
25.189

$
21.779

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
9

11

15

19

23

43

59

120

137

—



 
65

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Fidelity VIP Dynamic Capital Appreciation Portfolio (a)
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
22.213

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
21.780

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
21.567

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
21.147

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
21.147

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
34.125

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.532

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
2

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
33.207

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—



 
66

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Flex Cap Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.718

$
18.400

$
17.781

$
16.901

$
12.398

$
11.444

$
12.124

$
10.523

$
7.982

$
12.444

Accumulation Unit Value at end of period
$
22.301

$
17.718

$
18.400

$
17.781

$
16.901

$
12.398

$
11.444

$
12.124

$
10.523

$
7.982

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

2

2

2

2

2

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.303

$
18.006

$
17.435

$
16.605

$
12.205

$
11.288

$
11.983

$
10.422

$
7.921

$
12.374

Accumulation Unit Value at end of period
$
21.735

$
17.303

$
18.006

$
17.435

$
16.605

$
12.205

$
11.288

$
11.983

$
10.422

$
7.921

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.100

$
17.812

$
17.264

$
16.459

$
12.110

$
11.211

$
11.913

$
10.372

$
7.890

$
12.339

Accumulation Unit Value at end of period
$
21.458

$
17.100

$
17.812

$
17.264

$
16.459

$
12.110

$
11.211

$
11.913

$
10.372

$
7.890

Number of Accumulation Units outstanding at end of period (in thousands)
—

1

1

1

2

1

1

1

1

1

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.700

$
17.430

$
16.928

$
16.171

$
11.922

$
11.059

$
11.775

$
10.272

$
7.830

$
12.269

Accumulation Unit Value at end of period
$
20.914

$
16.700

$
17.430

$
16.928

$
16.171

$
11.922

$
11.059

$
11.775

$
10.272

$
7.830

Number of Accumulation Units outstanding at end of period (in thousands)
108

127

142

177

220

384

415

435

457

476

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.700

$
17.430

$
16.928

$
16.171

$
11.922

$
11.059

$
11.775

$
10.272

$
7.830

$
12.269

Accumulation Unit Value at end of period
$
20.914

$
16.700

$
17.430

$
16.928

$
16.171

$
11.922

$
11.059

$
11.775

$
10.272

$
7.830

Number of Accumulation Units outstanding at end of period (in thousands)
108

127

142

177

220

384

415

435

457

476

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.213

$
16.964

$
16.517

$
15.817

$
11.690

$
10.872

$
11.605

$
10.148

$
7.755

$
—

Accumulation Unit Value at end of period
$
20.254

$
16.213

$
16.964

$
16.517

$
15.817

$
11.690

$
10.872

$
11.605

$
10.148

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

1

2

1

1

1

1

1

—

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.117

$
16.872

$
16.436

$
15.748

$
11.645

$
10.835

$
11.571

$
10.124

$
7.740

$
12.165

Accumulation Unit Value at end of period
$
20.124

$
16.117

$
16.872

$
16.436

$
15.748

$
11.645

$
10.835

$
11.571

$
10.124

$
7.740

Number of Accumulation Units outstanding at end of period (in thousands)
23

24

40

45

48

61

75

83

83

77

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.647

$
16.421

$
16.036

$
15.403

$
11.419

$
10.651

$
11.403

$
10.002

$
7.666

$
—

Accumulation Unit Value at end of period
$
19.489

$
15.647

$
16.421

$
16.036

$
15.403

$
11.419

$
10.651

$
11.403

$
10.002

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
6

11

12

13

19

31

25

33

33

—



 
67

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Income VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.783

$
21.037

$
22.826

$
22.005

$
19.478

$
17.438

$
17.177

$
15.375

$
11.436

$
16.396

Accumulation Unit Value at end of period
$
25.863

$
23.783

$
21.037

$
22.826

$
22.005

$
19.478

$
17.438

$
17.177

$
15.375

$
11.436

Number of Accumulation Units outstanding at end of period (in thousands)
19

25

26

33

46

55

61

74

87

95

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.084

$
20.459

$
22.244

$
21.487

$
19.057

$
17.095

$
16.873

$
15.134

$
11.279

$
16.203

Accumulation Unit Value at end of period
$
25.053

$
23.084

$
20.459

$
22.244

$
21.487

$
19.057

$
17.095

$
16.873

$
15.134

$
11.279

Number of Accumulation Units outstanding at end of period (in thousands)
2

2

2

2

2

2

5

5

5

5

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.073

$
20.469

$
22.277

$
21.541

$
19.124

$
17.172

$
16.966

$
15.232

$
11.363

$
16.341

Accumulation Unit Value at end of period
$
25.015

$
23.073

$
20.469

$
22.277

$
21.541

$
19.124

$
17.172

$
16.966

$
15.232

$
11.363

Number of Accumulation Units outstanding at end of period (in thousands)
2

3

3

4

4

6

9

13

13

13

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.417

$
19.927

$
21.731

$
21.054

$
18.729

$
16.852

$
16.683

$
15.008

$
11.218

$
16.165

Accumulation Unit Value at end of period
$
24.255

$
22.417

$
19.927

$
21.731

$
21.054

$
18.729

$
16.852

$
16.683

$
15.008

$
11.218

Number of Accumulation Units outstanding at end of period (in thousands)
3,320

3,827

4,643

6,058

8,033

12,649

14,851

16,884

18,493

20,312

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.417

$
19.927

$
21.731

$
21.054

$
18.729

$
16.852

$
16.683

$
15.008

$
11.218

$
16.165

Accumulation Unit Value at end of period
$
24.255

$
22.417

$
19.927

$
21.731

$
21.054

$
18.729

$
16.852

$
16.683

$
15.008

$
11.218

Number of Accumulation Units outstanding at end of period (in thousands)
3,320

3,827

4,643

6,058

8,033

12,649

14,851

16,884

18,493

20,312

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.599

$
19.248

$
21.043

$
20.439

$
18.227

$
16.441

$
16.317

$
14.715

$
11.027

$
—

Accumulation Unit Value at end of period
$
23.312

$
21.599

$
19.248

$
21.043

$
20.439

$
18.227

$
16.441

$
16.317

$
14.715

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
12

15

16

17

20

22

29

20

23

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.441

$
19.117

$
20.910

$
20.320

$
18.130

$
16.362

$
16.247

$
14.659

$
10.991

$
15.884

Accumulation Unit Value at end of period
$
23.130

$
21.441

$
19.117

$
20.910

$
20.320

$
18.130

$
16.362

$
16.247

$
14.659

$
10.991

Number of Accumulation Units outstanding at end of period (in thousands)
731

804

917

1,262

1,649

2,048

2,433

2,701

3,032

3,312

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.669

$
18.474

$
20.258

$
19.736

$
17.653

$
15.971

$
15.898

$
14.381

$
10.809

$
—

Accumulation Unit Value at end of period
$
22.242

$
20.669

$
18.474

$
20.258

$
19.736

$
17.653

$
15.971

$
15.898

$
14.381

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
158

172

212

271

364

562

733

998

1,242

—




68
 

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Large Cap Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.705

$
19.209

$
18.341

$
16.448

$
12.896

$
11.574

$
11.851

$
10.711

$
8.327

$
12.827

Accumulation Unit Value at end of period
$
23.759

$
18.705

$
19.209

$
18.341

$
16.448

$
12.896

$
11.574

$
11.851

$
10.711

$
8.327

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

2

2

2

2

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.155

$
18.681

$
17.873

$
16.061

$
12.617

$
11.347

$
11.642

$
10.543

$
8.212

$
12.676

Accumulation Unit Value at end of period
$
23.015

$
18.155

$
18.681

$
17.873

$
16.061

$
12.617

$
11.347

$
11.642

$
10.543

$
8.212

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.146

$
18.691

$
17.900

$
16.101

$
12.661

$
11.398

$
11.706

$
10.611

$
8.274

$
12.784

Accumulation Unit Value at end of period
$
22.980

$
18.146

$
18.691

$
17.900

$
16.101

$
12.661

$
11.398

$
11.706

$
10.611

$
8.274

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

3

3

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.630

$
18.195

$
17.461

$
15.737

$
12.400

$
11.185

$
11.510

$
10.455

$
8.169

$
12.646

Accumulation Unit Value at end of period
$
22.282

$
17.630

$
18.195

$
17.461

$
15.737

$
12.400

$
11.185

$
11.510

$
10.455

$
8.169

Number of Accumulation Units outstanding at end of period (in thousands)
208

225

297

345

469

680

785

904

945

1,035

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.630

$
18.195

$
17.461

$
15.737

$
12.400

$
11.185

$
11.510

$
10.455

$
8.169

$
12.646

Accumulation Unit Value at end of period
$
22.282

$
17.630

$
18.195

$
17.461

$
15.737

$
12.400

$
11.185

$
11.510

$
10.455

$
8.169

Number of Accumulation Units outstanding at end of period (in thousands)
208

225

297

345

469

680

785

904

945

1,035

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.986

$
17.575

$
16.908

$
15.277

$
12.068

$
10.912

$
11.258

$
10.251

$
8.029

$
—

Accumulation Unit Value at end of period
$
21.415

$
16.986

$
17.575

$
16.908

$
15.277

$
12.068

$
10.912

$
11.258

$
10.251

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
4

4

4

3

1

2

3

3

2

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.862

$
17.456

$
16.801

$
15.188

$
12.003

$
10.860

$
11.209

$
10.212

$
8.003

$
12.427

Accumulation Unit Value at end of period
$
21.248

$
16.862

$
17.456

$
16.801

$
15.188

$
12.003

$
10.860

$
11.209

$
10.212

$
8.003

Number of Accumulation Units outstanding at end of period (in thousands)
59

76

93

102

137

169

210

239

318

375

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.255

$
16.869

$
16.277

$
14.751

$
11.687

$
10.600

$
10.969

$
10.018

$
7.870

$
—

Accumulation Unit Value at end of period
$
20.432

$
16.255

$
16.869

$
16.277

$
14.751

$
11.687

$
10.600

$
10.969

$
10.018

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
19

25

27

34

50

65

80

87

109

—



 
69

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Mutual Global Discovery VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
33.075

$
29.736

$
31.126

$
29.697

$
23.469

$
20.880

$
21.701

$
19.548

$
15.988

$
22.537

Accumulation Unit Value at end of period
$
35.614

$
33.075

$
29.736

$
31.126

$
29.697

$
23.469

$
20.880

$
21.701

$
19.548

$
15.988

Number of Accumulation Units outstanding at end of period (in thousands)
8

11

11

15

19

30

35

43

45

49

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
32.183

$
28.992

$
30.408

$
29.070

$
23.020

$
20.521

$
21.370

$
19.289

$
15.807

$
22.328

Accumulation Unit Value at end of period
$
34.585

$
32.183

$
28.992

$
30.408

$
29.070

$
23.020

$
20.521

$
21.370

$
19.289

$
15.807

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

1

1

1

1

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
32.038

$
28.891

$
30.332

$
29.026

$
23.008

$
20.531

$
21.402

$
19.337

$
15.862

$
22.428

Accumulation Unit Value at end of period
$
34.394

$
32.038

$
28.891

$
30.332

$
29.026

$
23.008

$
20.531

$
21.402

$
19.337

$
15.862

Number of Accumulation Units outstanding at end of period (in thousands)
6

6

6

6

6

6

6

6

4

3

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
31.174

$
28.168

$
29.632

$
28.413

$
22.567

$
20.178

$
21.077

$
19.081

$
15.684

$
22.220

Accumulation Unit Value at end of period
$
33.400

$
31.174

$
28.168

$
29.632

$
28.413

$
22.567

$
20.178

$
21.077

$
19.081

$
15.684

Number of Accumulation Units outstanding at end of period (in thousands)
326

376

443

589

777

1,245

1,485

1,710

1,812

1,884

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
31.174

$
28.168

$
29.632

$
28.413

$
22.567

$
20.178

$
21.077

$
19.081

$
15.684

$
22.220

Accumulation Unit Value at end of period
$
33.400

$
31.174

$
28.168

$
29.632

$
28.413

$
22.567

$
20.178

$
21.077

$
19.081

$
15.684

Number of Accumulation Units outstanding at end of period (in thousands)
326

376

443

589

777

1,245

1,485

1,710

1,812

1,884

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.126

$
27.290

$
28.780

$
27.665

$
22.028

$
19.746

$
20.676

$
18.766

$
15.463

$
—

Accumulation Unit Value at end of period
$
32.197

$
30.126

$
27.290

$
28.780

$
27.665

$
22.028

$
19.746

$
20.676

$
18.766

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
3

3

6

7

8

8

10

10

13

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
29.921

$
27.117

$
28.613

$
27.518

$
21.922

$
19.660

$
20.597

$
18.703

$
15.419

$
21.911

Accumulation Unit Value at end of period
$
31.962

$
29.921

$
27.117

$
28.613

$
27.518

$
21.922

$
19.660

$
20.597

$
18.703

$
15.419

Number of Accumulation Units outstanding at end of period (in thousands)
67

87

100

121

141

189

245

269

289

327

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.916

$
26.272

$
27.790

$
26.794

$
21.398

$
19.239

$
20.206

$
18.394

$
15.202

$
—

Accumulation Unit Value at end of period
$
30.811

$
28.916

$
26.272

$
27.790

$
26.794

$
21.398

$
19.239

$
20.206

$
18.394

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
26

28

30

39

48

73

89

117

135

—



70
 

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Mutual Shares VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.234

$
24.535

$
26.029

$
24.506

$
19.270

$
17.011

$
17.337

$
15.725

$
12.582

$
20.176

Accumulation Unit Value at end of period
$
30.332

$
28.234

$
24.535

$
26.029

$
24.506

$
19.270

$
17.011

$
17.337

$
15.725

$
12.582

Number of Accumulation Units outstanding at end of period (in thousands)
18

23

25

32

37

46

56

65

70

71

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.601

$
21.421

$
22.771

$
21.481

$
16.925

$
14.971

$
15.288

$
13.894

$
11.139

$
17.899

Accumulation Unit Value at end of period
$
26.376

$
24.601

$
21.421

$
22.771

$
21.481

$
16.925

$
14.971

$
15.288

$
13.894

$
11.139

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

2

2

2

2

2

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.494

$
23.964

$
25.500

$
24.080

$
18.991

$
16.816

$
17.190

$
15.638

$
12.550

$
20.185

Accumulation Unit Value at end of period
$
29.449

$
27.494

$
23.964

$
25.500

$
24.080

$
18.991

$
16.816

$
17.190

$
15.638

$
12.550

Number of Accumulation Units outstanding at end of period (in thousands)
10

11

13

13

14

16

17

12

13

10

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.611

$
23.241

$
24.780

$
23.447

$
18.529

$
16.439

$
16.838

$
15.349

$
12.342

$
19.892

Accumulation Unit Value at end of period
$
28.446

$
26.611

$
23.241

$
24.780

$
23.447

$
18.529

$
16.439

$
16.838

$
15.349

$
12.342

Number of Accumulation Units outstanding at end of period (in thousands)
1,534

1,762

2,123

2,730

3,657

4,982

6,172

7,237

8,060

8,853

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.611

$
23.241

$
24.780

$
23.447

$
18.529

$
16.439

$
16.838

$
15.349

$
12.342

$
19.892

Accumulation Unit Value at end of period
$
28.446

$
26.611

$
23.241

$
24.780

$
23.447

$
18.529

$
16.439

$
16.838

$
15.349

$
12.342

Number of Accumulation Units outstanding at end of period (in thousands)
1,534

1,762

2,123

2,730

3,657

4,982

6,172

7,237

8,060

8,853

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.058

$
20.188

$
21.579

$
20.469

$
16.216

$
14.423

$
14.810

$
13.534

$
10.910

$
—

Accumulation Unit Value at end of period
$
24.586

$
23.058

$
20.188

$
21.579

$
20.469

$
16.216

$
14.423

$
14.810

$
13.534

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
13

36

37

55

58

69

75

82

93

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.785

$
19.959

$
21.344

$
20.257

$
16.056

$
14.288

$
14.679

$
13.420

$
10.824

$
17.498

Accumulation Unit Value at end of period
$
24.283

$
22.785

$
19.959

$
21.344

$
20.257

$
16.056

$
14.288

$
14.679

$
13.420

$
10.824

Number of Accumulation Units outstanding at end of period (in thousands)
354

391

449

542

679

853

1,083

1,287

1,534

1,747

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.072

$
18.505

$
19.839

$
18.875

$
14.999

$
13.380

$
13.781

$
12.631

$
10.213

$
—

Accumulation Unit Value at end of period
$
22.401

$
21.072

$
18.505

$
19.839

$
18.875

$
14.999

$
13.380

$
13.781

$
12.631

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
110

138

171

212

291

495

588

777

1,002

—



 
71

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Rising Dividends VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.222

$
23.659

$
24.764

$
22.972

$
17.864

$
16.092

$
15.311

$
12.799

$
11.000

$
15.218

Accumulation Unit Value at end of period
$
32.540

$
27.222

$
23.659

$
24.764

$
22.972

$
17.864

$
16.092

$
15.311

$
12.799

$
11.000

Number of Accumulation Units outstanding at end of period (in thousands)
7

11

12

15

20

24

31

31

32

30

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.488

$
23.067

$
24.193

$
22.487

$
17.522

$
15.815

$
15.078

$
12.629

$
10.876

$
15.077

Accumulation Unit Value at end of period
$
31.600

$
26.488

$
23.067

$
24.193

$
22.487

$
17.522

$
15.815

$
15.078

$
12.629

$
10.876

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

2

2

2

2

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.368

$
22.986

$
24.132

$
22.453

$
17.513

$
15.823

$
15.100

$
12.661

$
10.914

$
15.145

Accumulation Unit Value at end of period
$
31.426

$
26.368

$
22.986

$
24.132

$
22.453

$
17.513

$
15.823

$
15.100

$
12.661

$
10.914

Number of Accumulation Units outstanding at end of period (in thousands)
2

3

3

3

5

5

5

9

11

11

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.657

$
22.411

$
23.575

$
21.979

$
17.177

$
15.551

$
14.870

$
12.493

$
10.791

$
15.004

Accumulation Unit Value at end of period
$
30.517

$
25.657

$
22.411

$
23.575

$
21.979

$
17.177

$
15.551

$
14.870

$
12.493

$
10.791

Number of Accumulation Units outstanding at end of period (in thousands)
1,564

1,801

2,129

2,754

3,645

5,209

5,929

6,501

6,852

7,607

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.657

$
22.411

$
23.575

$
21.979

$
17.177

$
15.551

$
14.870

$
12.493

$
10.791

$
15.004

Accumulation Unit Value at end of period
$
30.517

$
25.657

$
22.411

$
23.575

$
21.979

$
17.177

$
15.551

$
14.870

$
12.493

$
10.791

Number of Accumulation Units outstanding at end of period (in thousands)
1,564

1,801

2,129

2,754

3,645

5,209

5,929

6,501

6,852

7,607

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.795

$
21.712

$
22.897

$
21.400

$
16.767

$
15.217

$
14.588

$
12.286

$
10.639

$
—

Accumulation Unit Value at end of period
$
29.418

$
24.795

$
21.712

$
22.897

$
21.400

$
16.767

$
15.217

$
14.588

$
12.286

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1

3

6

9

9

9

9

9

9

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.626

$
21.575

$
22.764

$
21.286

$
16.686

$
15.151

$
14.532

$
12.245

$
10.609

$
14.795

Accumulation Unit Value at end of period
$
29.203

$
24.626

$
21.575

$
22.764

$
21.286

$
16.686

$
15.151

$
14.532

$
12.245

$
10.609

Number of Accumulation Units outstanding at end of period (in thousands)
307

364

413

553

737

898

1,045

1,144

1,175

1,316

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.799

$
20.902

$
22.110

$
20.726

$
16.288

$
14.826

$
14.256

$
12.043

$
10.460

$
—

Accumulation Unit Value at end of period
$
28.152

$
23.799

$
20.902

$
22.110

$
20.726

$
16.288

$
14.826

$
14.256

$
12.043

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
40

43

60

75

103

147

180

249

273

—



72
 

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Small Cap Value VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.923

$
13.884

$
15.120

$
15.162

$
11.224

$
9.562

$
10.020

$
7.881

$
6.154

$
9.266

Accumulation Unit Value at end of period
$
19.664

$
17.923

$
13.884

$
15.120

$
15.162

$
11.224

$
9.562

$
10.020

$
7.881

$
6.154

Number of Accumulation Units outstanding at end of period (in thousands)
3

3

3

3

3

3

3

3

3

2

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.593

$
13.656

$
14.901

$
14.973

$
11.106

$
9.480

$
9.955

$
7.845

$
6.139

$
9.261

Accumulation Unit Value at end of period
$
19.264

$
17.593

$
13.656

$
14.901

$
14.973

$
11.106

$
9.480

$
9.955

$
7.845

$
6.139

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.430

$
13.544

$
14.793

$
14.879

$
11.048

$
9.440

$
9.922

$
7.828

$
6.131

$
9.259

Accumulation Unit Value at end of period
$
19.067

$
17.430

$
13.544

$
14.793

$
14.879

$
11.048

$
9.440

$
9.922

$
7.828

$
6.131

Number of Accumulation Units outstanding at end of period (in thousands)
3

3

3

3

3

5

6

2

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.110

$
13.321

$
14.579

$
14.693

$
10.932

$
9.359

$
9.857

$
7.792

$
6.115

$
9.253

Accumulation Unit Value at end of period
$
18.679

$
17.110

$
13.321

$
14.579

$
14.693

$
10.932

$
9.359

$
9.857

$
7.792

$
6.115

Number of Accumulation Units outstanding at end of period (in thousands)
87

117

133

200

264

227

243

254

148

70

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.110

$
13.321

$
14.579

$
14.693

$
10.932

$
9.359

$
9.857

$
7.792

$
6.115

$
9.253

Accumulation Unit Value at end of period
$
18.679

$
17.110

$
13.321

$
14.579

$
14.693

$
10.932

$
9.359

$
9.857

$
7.792

$
6.115

Number of Accumulation Units outstanding at end of period (in thousands)
87

117

133

200

264

227

243

254

148

70

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.717

$
13.048

$
14.316

$
14.464

$
10.788

$
9.259

$
9.777

$
7.748

$
6.095

$
—

Accumulation Unit Value at end of period
$
18.204

$
16.717

$
13.048

$
14.316

$
14.464

$
10.788

$
9.259

$
9.777

$
7.748

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
4

4

1

1

1

1

3

1

6

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.640

$
12.994

$
14.264

$
14.419

$
10.760

$
9.240

$
9.761

$
7.739

$
6.091

$
9.246

Accumulation Unit Value at end of period
$
18.111

$
16.640

$
12.994

$
14.264

$
14.419

$
10.760

$
9.240

$
9.761

$
7.739

$
6.091

Number of Accumulation Units outstanding at end of period (in thousands)
30

33

41

53

72

53

81

75

47

58

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.258

$
12.728

$
14.007

$
14.194

$
10.619

$
9.141

$
9.681

$
7.695

$
6.072

$
—

Accumulation Unit Value at end of period
$
17.651

$
16.258

$
12.728

$
14.007

$
14.194

$
10.619

$
9.141

$
9.681

$
7.695

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
4

8

9

11

11

22

25

22

16

—




 
73

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Small-Mid Cap Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.338

$
21.627

$
22.407

$
21.027

$
15.350

$
13.965

$
14.799

$
11.695

$
8.215

$
14.408

Accumulation Unit Value at end of period
$
26.888

$
22.338

$
21.627

$
22.407

$
21.027

$
15.350

$
13.965

$
14.799

$
11.695

$
8.215

Number of Accumulation Units outstanding at end of period (in thousands)
3

6

6

6

6

7

10

12

13

16

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.677

$
21.999

$
22.839

$
21.475

$
15.708

$
14.320

$
15.206

$
12.040

$
8.475

$
14.893

Accumulation Unit Value at end of period
$
27.243

$
22.677

$
21.999

$
22.839

$
21.475

$
15.708

$
14.320

$
15.206

$
12.040

$
8.475

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.753

$
21.124

$
21.951

$
20.661

$
15.128

$
13.805

$
14.674

$
11.631

$
8.194

$
14.415

Accumulation Unit Value at end of period
$
26.106

$
21.753

$
21.124

$
21.951

$
20.661

$
15.128

$
13.805

$
14.674

$
11.631

$
8.194

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

4

5

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.054

$
20.486

$
21.331

$
20.118

$
14.760

$
13.496

$
14.374

$
11.415

$
8.059

$
14.205

Accumulation Unit Value at end of period
$
25.216

$
21.054

$
20.486

$
21.331

$
20.118

$
14.760

$
13.496

$
14.374

$
11.415

$
8.059

Number of Accumulation Units outstanding at end of period (in thousands)
324

377

432

544

745

832

985

1,110

1,151

1,141

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.054

$
20.486

$
21.331

$
20.118

$
14.760

$
13.496

$
14.374

$
11.415

$
8.059

$
14.205

Accumulation Unit Value at end of period
$
25.216

$
21.054

$
20.486

$
21.331

$
20.118

$
14.760

$
13.496

$
14.374

$
11.415

$
8.059

Number of Accumulation Units outstanding at end of period (in thousands)
324

377

432

544

745

832

985

1,110

1,151

1,141

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.255

$
20.733

$
21.642

$
20.463

$
15.050

$
13.796

$
14.730

$
11.728

$
8.300

$
—

Accumulation Unit Value at end of period
$
25.393

$
21.255

$
20.733

$
21.642

$
20.463

$
15.050

$
13.796

$
14.730

$
11.728

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
3

3

3

6

8

9

9

13

25

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.003

$
20.497

$
21.407

$
20.250

$
14.902

$
13.666

$
14.599

$
11.629

$
8.235

$
14.559

Accumulation Unit Value at end of period
$
25.080

$
21.003

$
20.497

$
21.407

$
20.250

$
14.902

$
13.666

$
14.599

$
11.629

$
8.235

Number of Accumulation Units outstanding at end of period (in thousands)
89

97

117

162

208

254

343

455

549

614

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.743

$
11.489

$
12.029

$
11.407

$
8.415

$
7.737

$
8.286

$
6.617

$
4.697

$
—

Accumulation Unit Value at end of period
$
13.987

$
11.743

$
11.489

$
12.029

$
11.407

$
8.415

$
7.737

$
8.286

$
6.617

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
42

46

55

78

108

157

194

260

337

—



 
74

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Franklin Strategic Income VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.145

$
23.426

$
24.513

$
24.209

$
23.585

$
21.027

$
20.634

$
18.712

$
14.964

$
16.963

Accumulation Unit Value at end of period
$
26.113

$
25.145

$
23.426

$
24.513

$
24.209

$
23.585

$
21.027

$
20.634

$
18.712

$
14.964

Number of Accumulation Units outstanding at end of period (in thousands)
4

4

5

9

15

18

20

21

25

25

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.768

$
22.188

$
23.264

$
23.021

$
22.472

$
20.075

$
19.739

$
17.937

$
14.373

$
16.325

Accumulation Unit Value at end of period
$
24.633

$
23.768

$
22.188

$
23.264

$
23.021

$
22.472

$
20.075

$
19.739

$
17.937

$
14.373

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

1

1

1

1

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.486

$
22.881

$
24.015

$
23.788

$
23.245

$
20.786

$
20.458

$
18.609

$
14.926

$
16.971

Accumulation Unit Value at end of period
$
25.353

$
24.486

$
22.881

$
24.015

$
23.788

$
23.245

$
20.786

$
20.458

$
18.609

$
14.926

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

2

5

5

2

2

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.700

$
22.191

$
23.337

$
23.163

$
22.679

$
20.321

$
20.040

$
18.265

$
14.680

$
16.724

Accumulation Unit Value at end of period
$
24.490

$
23.700

$
22.191

$
23.337

$
23.163

$
22.679

$
20.321

$
20.040

$
18.265

$
14.680

Number of Accumulation Units outstanding at end of period (in thousands)
755

858

1,035

1,330

1,683

2,284

2,462

2,665

2,650

2,523

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.700

$
22.191

$
23.337

$
23.163

$
22.679

$
20.321

$
20.040

$
18.265

$
14.680

$
16.724

Accumulation Unit Value at end of period
$
24.490

$
23.700

$
22.191

$
23.337

$
23.163

$
22.679

$
20.321

$
20.040

$
18.265

$
14.680

Number of Accumulation Units outstanding at end of period (in thousands)
755

858

1,035

1,330

1,683

2,284

2,462

2,665

2,650

2,523

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.277

$
20.911

$
22.046

$
21.936

$
21.531

$
19.341

$
19.122

$
17.472

$
14.077

$
—

Accumulation Unit Value at end of period
$
22.962

$
22.277

$
20.911

$
22.046

$
21.936

$
21.531

$
19.341

$
19.122

$
17.472

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
4

5

7

8

9

10

24

17

18

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.013

$
20.673

$
21.807

$
21.709

$
21.319

$
19.160

$
18.952

$
17.325

$
13.966

$
15.959

Accumulation Unit Value at end of period
$
22.679

$
22.013

$
20.673

$
21.807

$
21.709

$
21.319

$
19.160

$
18.952

$
17.325

$
13.966

Number of Accumulation Units outstanding at end of period (in thousands)
222

234

274

370

462

611

722

814

995

903

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.383

$
19.190

$
20.293

$
20.252

$
19.938

$
17.964

$
17.814

$
16.325

$
13.193

$
—

Accumulation Unit Value at end of period
$
20.946

$
20.383

$
19.190

$
20.293

$
20.252

$
19.938

$
17.964

$
17.814

$
16.325

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
56

67

85

101

138

206

213

259

273

—



 
75

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Hartford Ultrashort Bond HLS Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.136

$
1.134

$
1.142

$
1.151

$
1.161

$
1.171

$
1.181

$
1.191

$
1.200

$
1.185

Accumulation Unit Value at end of period
$
1.137

$
1.136

$
1.134

$
1.142

$
1.151

$
1.161

$
1.171

$
1.181

$
1.191

$
1.200

Number of Accumulation Units outstanding at end of period (in thousands)
4

4

4

—

—

42

44

92

106

166

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.103

$
1.104

$
1.114

$
1.124

$
1.136

$
1.148

$
1.160

$
1.173

$
1.184

$
1.172

Accumulation Unit Value at end of period
$
1.102

$
1.103

$
1.104

$
1.114

$
1.124

$
1.136

$
1.148

$
1.160

$
1.173

$
1.184

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.106

$
1.108

$
1.119

$
1.131

$
1.144

$
1.157

$
1.171

$
1.184

$
1.197

$
1.186

Accumulation Unit Value at end of period
$
1.104

$
1.106

$
1.108

$
1.119

$
1.131

$
1.144

$
1.157

$
1.171

$
1.184

$
1.197

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

2

11

9

62

119

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.070

$
1.074

$
1.088

$
1.101

$
1.116

$
1.132

$
1.147

$
1.162

$
1.177

$
1.169

Accumulation Unit Value at end of period
$
1.067

$
1.070

$
1.074

$
1.088

$
1.101

$
1.116

$
1.132

$
1.147

$
1.162

$
1.177

Number of Accumulation Units outstanding at end of period (in thousands)
8,219

8,785

10,247

13,289

17,307

28,705

32,805

32,340

44,764

67,134

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.070

$
1.074

$
1.088

$
1.101

$
1.116

$
1.132

$
1.147

$
1.162

$
1.177

$
1.169

Accumulation Unit Value at end of period
$
1.067

$
1.070

$
1.074

$
1.088

$
1.101

$
1.116

$
1.132

$
1.147

$
1.162

$
1.177

Number of Accumulation Units outstanding at end of period (in thousands)
8,219

8,785

10,247

13,289

17,307

28,705

32,805

32,340

44,764

67,134

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.033

$
1.040

$
1.055

$
1.071

$
1.089

$
1.106

$
1.124

$
1.142

$
1.160

$
—

Accumulation Unit Value at end of period
$
1.027

$
1.033

$
1.040

$
1.055

$
1.071

$
1.089

$
1.106

$
1.124

$
1.142

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
431

476

592

346

347

346

346

368

445

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.021

$
1.028

$
1.044

$
1.060

$
1.078

$
1.096

$
1.114

$
1.133

$
1.151

$
1.145

Accumulation Unit Value at end of period
$
1.015

$
1.021

$
1.028

$
1.044

$
1.060

$
1.078

$
1.096

$
1.114

$
1.133

$
1.151

Number of Accumulation Units outstanding at end of period (in thousands)
2,621

2,767

3,216

3,912

7,147

11,972

17,209

15,611

20,264

35,725

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
0.935

$
0.944

$
0.960

$
0.978

$
0.997

$
1.016

$
1.035

$
1.055

$
1.075

$
—

Accumulation Unit Value at end of period
$
0.926

$
0.935

$
0.944

$
0.960

$
0.978

$
0.997

$
1.016

$
1.035

$
1.055

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
702

727

879

1,188

1,289

1,989

4,431

3,123

4,604

—



 
76

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. American Franchise Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.471

$
16.243

$
15.600

$
14.509

$
10.442

$
9.259

$
10.734

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.796

$
16.471

$
16.243

$
15.600

$
14.509

$
10.442

$
9.259

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

3

2

3

3

3

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.281

$
16.088

$
15.483

$
14.428

$
10.404

$
9.245

$
10.731

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.516

$
16.281

$
16.088

$
15.483

$
14.428

$
10.404

$
9.245

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.187

$
16.011

$
15.424

$
14.388

$
10.386

$
9.237

$
10.730

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.377

$
16.187

$
16.011

$
15.424

$
14.388

$
10.386

$
9.237

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.001

$
15.858

$
15.308

$
14.308

$
10.349

$
9.223

$
10.727

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.102

$
16.001

$
15.858

$
15.308

$
14.308

$
10.349

$
9.223

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
104

124

142

169

221

291

159

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.001

$
15.858

$
15.308

$
14.308

$
10.349

$
9.223

$
10.727

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
20.102

$
16.001

$
15.858

$
15.308

$
14.308

$
10.349

$
9.223

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
104

124

142

169

221

291

159

—

—

—

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.771

$
15.670

$
15.163

$
14.209

$
10.302

$
9.205

$
10.724

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.764

$
15.771

$
15.670

$
15.163

$
14.209

$
10.302

$
9.205

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
2

2

2

1

1

6

2

—

—

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.725

$
15.632

$
15.135

$
14.189

$
10.293

$
9.201

$
10.723

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.697

$
15.725

$
15.632

$
15.135

$
14.189

$
10.293

$
9.201

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
56

59

68

75

89

130

67

—

—

—

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.499

$
15.446

$
14.992

$
14.090

$
10.247

$
9.183

$
10.720

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
19.365

$
15.499

$
15.446

$
14.992

$
14.090

$
10.247

$
9.183

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
14

23

27

29

31

55

26

—

—

—



 
77

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. Core Equity Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.297

$
17.650

$
18.891

$
17.617

$
13.746

$
12.174

$
12.285

$
11.310

$
8.890

$
12.835

Accumulation Unit Value at end of period
$
21.654

$
19.297

$
17.650

$
18.891

$
17.617

$
13.746

$
12.174

$
12.285

$
11.310

$
8.890

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

2

2

2

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.845

$
17.271

$
18.523

$
17.308

$
13.532

$
12.008

$
12.143

$
11.201

$
8.822

$
12.762

Accumulation Unit Value at end of period
$
21.105

$
18.845

$
17.271

$
18.523

$
17.308

$
13.532

$
12.008

$
12.143

$
11.201

$
8.822

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.623

$
17.085

$
18.341

$
17.156

$
13.427

$
11.926

$
12.072

$
11.147

$
8.788

$
12.726

Accumulation Unit Value at end of period
$
20.836

$
18.623

$
17.085

$
18.341

$
17.156

$
13.427

$
11.926

$
12.072

$
11.147

$
8.788

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.188

$
16.719

$
17.984

$
16.855

$
13.218

$
11.764

$
11.932

$
11.039

$
8.721

$
12.654

Accumulation Unit Value at end of period
$
20.308

$
18.188

$
16.719

$
17.984

$
16.855

$
13.218

$
11.764

$
11.932

$
11.039

$
8.721

Number of Accumulation Units outstanding at end of period (in thousands)
292

329

401

488

644

633

771

912

930

913

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.188

$
16.719

$
17.984

$
16.855

$
13.218

$
11.764

$
11.932

$
11.039

$
8.721

$
12.654

Accumulation Unit Value at end of period
$
20.308

$
18.188

$
16.719

$
17.984

$
16.855

$
13.218

$
11.764

$
11.932

$
11.039

$
8.721

Number of Accumulation Units outstanding at end of period (in thousands)
292

329

401

488

644

633

771

912

930

913

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.657

$
16.272

$
17.547

$
16.487

$
12.962

$
11.565

$
11.759

$
10.907

$
8.638

$
—

Accumulation Unit Value at end of period
$
19.667

$
17.657

$
16.272

$
17.547

$
16.487

$
12.962

$
11.565

$
11.759

$
10.907

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

3

5

5

5

5

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.553

$
16.184

$
17.461

$
16.414

$
12.911

$
11.526

$
11.725

$
10.880

$
8.621

$
12.547

Accumulation Unit Value at end of period
$
19.541

$
17.553

$
16.184

$
17.461

$
16.414

$
12.911

$
11.526

$
11.725

$
10.880

$
8.621

Number of Accumulation Units outstanding at end of period (in thousands)
102

118

152

173

229

283

351

408

495

535

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.041

$
15.752

$
17.037

$
16.056

$
12.660

$
11.330

$
11.555

$
10.749

$
8.539

$
—

Accumulation Unit Value at end of period
$
18.924

$
17.041

$
15.752

$
17.037

$
16.056

$
12.660

$
11.330

$
11.555

$
10.749

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
26

31

42

46

64

119

127

138

167

—




 
78

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. Government Money Market Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.713

$
9.787

$
9.869

$
9.952

$
9.990

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.685

$
9.713

$
9.787

$
9.869

$
9.952

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.644

$
9.736

$
9.838

$
9.940

$
9.987

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.597

$
9.644

$
9.736

$
9.838

$
9.940

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.609

$
9.711

$
9.822

$
9.934

$
9.986

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.553

$
9.609

$
9.711

$
9.822

$
9.934

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

1

1

1

1

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.540

$
9.661

$
9.791

$
9.923

$
9.984

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.465

$
9.540

$
9.661

$
9.791

$
9.923

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,450

1,405

1,533

2,095

449

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.540

$
9.661

$
9.791

$
9.923

$
9.984

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.465

$
9.540

$
9.661

$
9.791

$
9.923

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,450

1,405

1,533

2,095

449

—

—

—

—

—

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.455

$
9.598

$
9.752

$
9.908

$
9.981

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.357

$
9.455

$
9.598

$
9.752

$
9.908

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.438

$
9.586

$
9.744

$
9.905

$
9.980

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.336

$
9.438

$
9.586

$
9.744

$
9.905

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
277

336

546

600

189

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.354

$
9.524

$
9.706

$
9.891

$
9.977

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
9.229

$
9.354

$
9.524

$
9.706

$
9.891

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
20

20

8

33

52

—

—

—

—

—



 
79

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. Government Securities Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.487

$
1.481

$
1.489

$
1.442

$
1.493

$
1.470

$
1.374

$
1.314

$
1.326

$
1.191

Accumulation Unit Value at end of period
$
1.503

$
1.487

$
1.481

$
1.489

$
1.442

$
1.493

$
1.470

$
1.374

$
1.314

$
1.326

Number of Accumulation Units outstanding at end of period (in thousands)
22

21

27

56

58

43

44

49

87

118

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.441

$
1.439

$
1.449

$
1.406

$
1.459

$
1.439

$
1.347

$
1.292

$
1.306

$
1.175

Accumulation Unit Value at end of period
$
1.454

$
1.441

$
1.439

$
1.449

$
1.406

$
1.459

$
1.439

$
1.347

$
1.292

$
1.306

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.444

$
1.443

$
1.454

$
1.413

$
1.468

$
1.449

$
1.358

$
1.303

$
1.319

$
1.188

Accumulation Unit Value at end of period
$
1.455

$
1.444

$
1.443

$
1.454

$
1.413

$
1.468

$
1.449

$
1.358

$
1.303

$
1.319

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.402

$
1.403

$
1.418

$
1.380

$
1.436

$
1.420

$
1.334

$
1.283

$
1.301

$
1.174

Accumulation Unit Value at end of period
$
1.410

$
1.402

$
1.403

$
1.418

$
1.380

$
1.436

$
1.420

$
1.334

$
1.283

$
1.301

Number of Accumulation Units outstanding at end of period (in thousands)
15,539

17,443

19,407

25,037

31,011

45,338

47,904

53,690

56,441

63,225

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.402

$
1.403

$
1.418

$
1.380

$
1.436

$
1.420

$
1.334

$
1.283

$
1.301

$
1.174

Accumulation Unit Value at end of period
$
1.410

$
1.402

$
1.403

$
1.418

$
1.380

$
1.436

$
1.420

$
1.334

$
1.283

$
1.301

Number of Accumulation Units outstanding at end of period (in thousands)
15,539

17,443

19,407

25,037

31,011

45,338

47,904

53,690

56,441

63,225

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.348

$
1.353

$
1.370

$
1.337

$
1.395

$
1.383

$
1.303

$
1.256

$
1.276

$
—

Accumulation Unit Value at end of period
$
1.352

$
1.348

$
1.353

$
1.370

$
1.337

$
1.395

$
1.383

$
1.303

$
1.256

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
42

41

53

70

100

151

166

188

245

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.338

$
1.343

$
1.361

$
1.329

$
1.387

$
1.376

$
1.297

$
1.251

$
1.272

$
1.151

Accumulation Unit Value at end of period
$
1.341

$
1.338

$
1.343

$
1.361

$
1.329

$
1.387

$
1.376

$
1.297

$
1.251

$
1.272

Number of Accumulation Units outstanding at end of period (in thousands)
4,530

4,978

5,103

6,643

8,608

11,878

13,856

16,097

18,664

22,349

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.287

$
1.296

$
1.317

$
1.289

$
1.349

$
1.341

$
1.267

$
1.225

$
1.249

$
—

Accumulation Unit Value at end of period
$
1.288

$
1.287

$
1.296

$
1.317

$
1.289

$
1.349

$
1.341

$
1.267

$
1.225

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1,342

1,409

1,551

1,931

2,892

3,724

3,685

5,374

6,307

—



 
80

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. International Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.545

$
2.578

$
2.662

$
2.676

$
2.268

$
1.980

$
2.141

$
1.913

$
1.427

$
2.413

Accumulation Unit Value at end of period
$
3.104

$
2.545

$
2.578

$
2.662

$
2.676

$
2.268

$
1.980

$
2.141

$
1.913

$
1.427

Number of Accumulation Units outstanding at end of period (in thousands)
17

20

21

23

24

30

45

47

55

58

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.466

$
2.503

$
2.591

$
2.609

$
2.216

$
1.938

$
2.100

$
1.880

$
1.405

$
2.381

Accumulation Unit Value at end of period
$
3.002

$
2.466

$
2.503

$
2.591

$
2.609

$
2.216

$
1.938

$
2.100

$
1.880

$
1.405

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

2

2

2

2

2

2

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.471

$
2.511

$
2.601

$
2.622

$
2.229

$
1.951

$
2.117

$
1.897

$
1.419

$
2.408

Accumulation Unit Value at end of period
$
3.005

$
2.471

$
2.511

$
2.601

$
2.622

$
2.229

$
1.951

$
2.117

$
1.897

$
1.419

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

4

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.398

$
2.442

$
2.535

$
2.561

$
2.181

$
1.913

$
2.079

$
1.867

$
1.400

$
2.379

Accumulation Unit Value at end of period
$
2.911

$
2.398

$
2.442

$
2.535

$
2.561

$
2.181

$
1.913

$
2.079

$
1.867

$
1.400

Number of Accumulation Units outstanding at end of period (in thousands)
3,084

3,665

4,171

5,502

7,081

8,346

9,422

9,891

10,431

10,999

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.398

$
2.442

$
2.535

$
2.561

$
2.181

$
1.913

$
2.079

$
1.867

$
1.400

$
2.379

Accumulation Unit Value at end of period
$
2.911

$
2.398

$
2.442

$
2.535

$
2.561

$
2.181

$
1.913

$
2.079

$
1.867

$
1.400

Number of Accumulation Units outstanding at end of period (in thousands)
3,084

3,665

4,171

5,502

7,081

8,346

9,422

9,891

10,431

10,999

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.307

$
2.355

$
2.450

$
2.481

$
2.118

$
1.863

$
2.030

$
1.828

$
1.373

$
—

Accumulation Unit Value at end of period
$
2.792

$
2.307

$
2.355

$
2.450

$
2.481

$
2.118

$
1.863

$
2.030

$
1.828

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

1

2

2

2

1

1

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.289

$
2.338

$
2.434

$
2.466

$
2.107

$
1.854

$
2.021

$
1.820

$
1.368

$
2.333

Accumulation Unit Value at end of period
$
2.770

$
2.289

$
2.338

$
2.434

$
2.466

$
2.107

$
1.854

$
2.021

$
1.820

$
1.368

Number of Accumulation Units outstanding at end of period (in thousands)
440

534

580

752

974

1,119

1,284

1,550

1,778

1,980

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.203

$
2.256

$
2.354

$
2.392

$
2.048

$
1.807

$
1.974

$
1.783

$
1.344

$
—

Accumulation Unit Value at end of period
$
2.659

$
2.203

$
2.256

$
2.354

$
2.392

$
2.048

$
1.807

$
1.974

$
1.783

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
125

130

171

207

262

345

387

518

638

—



 
81

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. Mid Cap Core Equity Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.729

$
2.426

$
2.549

$
2.462

$
1.928

$
1.752

$
1.887

$
1.668

$
1.292

$
1.823

Accumulation Unit Value at end of period
$
3.109

$
2.729

$
2.426

$
2.549

$
2.462

$
1.928

$
1.752

$
1.887

$
1.668

$
1.292

Number of Accumulation Units outstanding at end of period (in thousands)
29

30

37

46

47

74

82

88

77

85

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.644

$
2.356

$
2.481

$
2.400

$
1.883

$
1.715

$
1.851

$
1.639

$
1.272

$
1.799

Accumulation Unit Value at end of period
$
3.007

$
2.644

$
2.356

$
2.481

$
2.400

$
1.883

$
1.715

$
1.851

$
1.639

$
1.272

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.650

$
2.363

$
2.490

$
2.412

$
1.894

$
1.727

$
1.866

$
1.654

$
1.285

$
1.818

Accumulation Unit Value at end of period
$
3.010

$
2.650

$
2.363

$
2.490

$
2.412

$
1.894

$
1.727

$
1.866

$
1.654

$
1.285

Number of Accumulation Units outstanding at end of period (in thousands)
4

4

4

4

4

5

10

10

10

10

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.572

$
2.298

$
2.427

$
2.356

$
1.854

$
1.693

$
1.833

$
1.628

$
1.267

$
1.797

Accumulation Unit Value at end of period
$
2.916

$
2.572

$
2.298

$
2.427

$
2.356

$
1.854

$
1.693

$
1.833

$
1.628

$
1.267

Number of Accumulation Units outstanding at end of period (in thousands)
1,656

1,843

2,211

2,924

3,735

4,332

5,244

6,149

6,200

6,327

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.572

$
2.298

$
2.427

$
2.356

$
1.854

$
1.693

$
1.833

$
1.628

$
1.267

$
1.797

Accumulation Unit Value at end of period
$
2.916

$
2.572

$
2.298

$
2.427

$
2.356

$
1.854

$
1.693

$
1.833

$
1.628

$
1.267

Number of Accumulation Units outstanding at end of period (in thousands)
1,656

1,843

2,211

2,924

3,735

4,332

5,244

6,149

6,200

6,327

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.474

$
2.216

$
2.346

$
2.283

$
1.801

$
1.649

$
1.790

$
1.594

$
1.244

$
—

Accumulation Unit Value at end of period
$
2.797

$
2.474

$
2.216

$
2.346

$
2.283

$
1.801

$
1.649

$
1.790

$
1.594

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
59

67

75

119

98

108

107

109

134

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.455

$
2.200

$
2.330

$
2.269

$
1.790

$
1.640

$
1.781

$
1.587

$
1.239

$
1.762

Accumulation Unit Value at end of period
$
2.775

$
2.455

$
2.200

$
2.330

$
2.269

$
1.790

$
1.640

$
1.781

$
1.587

$
1.239

Number of Accumulation Units outstanding at end of period (in thousands)
688

778

828

960

1,214

1,514

1,901

2,439

2,977

3,499

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
2.363

$
2.123

$
2.254

$
2.200

$
1.741

$
1.599

$
1.741

$
1.555

$
1.217

$
—

Accumulation Unit Value at end of period
$
2.664

$
2.363

$
2.123

$
2.254

$
2.200

$
1.741

$
1.599

$
1.741

$
1.555

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
176

225

291

356

528

939

1,031

1,551

1,852

—




82
 

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. Mid Cap Growth Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.479

$
14.493

$
14.443

$
13.482

$
9.924

$
10.029

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
17.586

$
14.479

$
14.493

$
14.443

$
13.482

$
9.924

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

3

3

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.340

$
14.383

$
14.361

$
13.433

$
9.907

$
10.025

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
17.382

$
14.340

$
14.383

$
14.361

$
13.433

$
9.907

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.271

$
14.328

$
14.321

$
13.408

$
9.899

$
10.024

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
17.281

$
14.271

$
14.328

$
14.321

$
13.408

$
9.899

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.134

$
14.218

$
14.240

$
13.359

$
9.883

$
10.020

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
17.080

$
14.134

$
14.218

$
14.240

$
13.359

$
9.883

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
26

30

39

41

41

33

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.134

$
14.218

$
14.240

$
13.359

$
9.883

$
10.020

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
17.080

$
14.134

$
14.218

$
14.240

$
13.359

$
9.883

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
26

30

39

41

41

33

—

—

—

—

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.964

$
14.083

$
14.139

$
13.298

$
9.862

$
10.016

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
16.833

$
13.964

$
14.083

$
14.139

$
13.298

$
9.862

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.930

$
14.056

$
14.119

$
13.286

$
9.858

$
10.015

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
16.784

$
13.930

$
14.056

$
14.119

$
13.286

$
9.858

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
13

14

15

11

19

8

—

—

—

—

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.763

$
13.921

$
14.019

$
13.225

$
9.837

$
10.011

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
16.541

$
13.763

$
13.921

$
14.019

$
13.225

$
9.837

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

2

2

2

2

—

—

—

—



 
83

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. Small Cap Equity Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.319

$
22.786

$
24.323

$
23.964

$
17.582

$
15.569

$
15.816

$
12.410

$
10.319

$
15.151

Accumulation Unit Value at end of period
$
28.633

$
25.319

$
22.786

$
24.323

$
23.964

$
17.582

$
15.569

$
15.816

$
12.410

$
10.319

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

1

1

1

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.659

$
22.236

$
23.784

$
23.480

$
17.261

$
15.315

$
15.590

$
12.257

$
10.212

$
15.024

Accumulation Unit Value at end of period
$
27.831

$
24.659

$
22.236

$
23.784

$
23.480

$
17.261

$
15.315

$
15.590

$
12.257

$
10.212

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.502

$
22.117

$
23.680

$
23.401

$
17.220

$
15.294

$
15.584

$
12.264

$
10.229

$
15.064

Accumulation Unit Value at end of period
$
27.627

$
24.502

$
22.117

$
23.680

$
23.401

$
17.220

$
15.294

$
15.584

$
12.264

$
10.229

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.864

$
21.584

$
23.155

$
22.929

$
16.906

$
15.045

$
15.361

$
12.113

$
10.123

$
14.937

Accumulation Unit Value at end of period
$
26.853

$
23.864

$
21.584

$
23.155

$
22.929

$
16.906

$
15.045

$
15.361

$
12.113

$
10.123

Number of Accumulation Units outstanding at end of period (in thousands)
186

219

262

374

453

584

671

729

771

720

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.864

$
21.584

$
23.155

$
22.929

$
16.906

$
15.045

$
15.361

$
12.113

$
10.123

$
14.937

Accumulation Unit Value at end of period
$
26.853

$
23.864

$
21.584

$
23.155

$
22.929

$
16.906

$
15.045

$
15.361

$
12.113

$
10.123

Number of Accumulation Units outstanding at end of period (in thousands)
186

219

262

374

453

584

671

729

771

720

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.089

$
20.935

$
22.516

$
22.351

$
16.521

$
14.740

$
15.087

$
11.927

$
9.992

$
—

Accumulation Unit Value at end of period
$
25.916

$
23.089

$
20.935

$
22.516

$
22.351

$
16.521

$
14.740

$
15.087

$
11.927

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

1

1

1

1

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.937

$
20.808

$
22.390

$
22.237

$
16.445

$
14.679

$
15.033

$
11.890

$
9.966

$
14.750

Accumulation Unit Value at end of period
$
25.733

$
22.937

$
20.808

$
22.390

$
22.237

$
16.445

$
14.679

$
15.033

$
11.890

$
9.966

Number of Accumulation Units outstanding at end of period (in thousands)
42

49

58

77

90

117

144

169

168

187

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.192

$
20.183

$
21.771

$
21.677

$
16.071

$
14.381

$
14.764

$
11.707

$
9.837

$
—

Accumulation Unit Value at end of period
$
24.835

$
22.192

$
20.183

$
21.771

$
21.677

$
16.071

$
14.381

$
14.764

$
11.707

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
7

8

11

13

17

33

40

49

64

—



84
 

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Invesco V.I. Value Opportunities Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.886

$
1.607

$
1.809

$
1.711

$
1.290

$
1.106

$
1.150

$
1.081

$
0.736

$
1.540

Accumulation Unit Value at end of period
$
2.196

$
1.886

$
1.607

$
1.809

$
1.711

$
1.290

$
1.106

$
1.150

$
1.081

$
0.736

Number of Accumulation Units outstanding at end of period (in thousands)
2

2

3

5

11

12

12

12

13

13

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.828

$
1.561

$
1.761

$
1.669

$
1.261

$
1.082

$
1.128

$
1.062

$
0.725

$
1.519

Accumulation Unit Value at end of period
$
2.124

$
1.828

$
1.561

$
1.761

$
1.669

$
1.261

$
1.082

$
1.128

$
1.062

$
0.725

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.831

$
1.565

$
1.767

$
1.677

$
1.268

$
1.090

$
1.137

$
1.072

$
0.732

$
1.536

Accumulation Unit Value at end of period
$
2.126

$
1.831

$
1.565

$
1.767

$
1.677

$
1.268

$
1.090

$
1.137

$
1.072

$
0.732

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.778

$
1.523

$
1.722

$
1.637

$
1.241

$
1.069

$
1.117

$
1.055

$
0.722

$
1.518

Accumulation Unit Value at end of period
$
2.060

$
1.778

$
1.523

$
1.722

$
1.637

$
1.241

$
1.069

$
1.117

$
1.055

$
0.722

Number of Accumulation Units outstanding at end of period (in thousands)
853

969

1,141

1,345

1,616

2,102

2,457

3,387

3,814

3,818

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.778

$
1.523

$
1.722

$
1.637

$
1.241

$
1.069

$
1.117

$
1.055

$
0.722

$
1.518

Accumulation Unit Value at end of period
$
2.060

$
1.778

$
1.523

$
1.722

$
1.637

$
1.241

$
1.069

$
1.117

$
1.055

$
0.722

Number of Accumulation Units outstanding at end of period (in thousands)
853

969

1,141

1,345

1,616

2,102

2,457

3,387

3,814

3,818

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.710

$
1.468

$
1.665

$
1.587

$
1.205

$
1.041

$
1.091

$
1.032

$
0.709

$
—

Accumulation Unit Value at end of period
$
1.976

$
1.710

$
1.468

$
1.665

$
1.587

$
1.205

$
1.041

$
1.091

$
1.032

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

17

21

39

21

28

29

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.697

$
1.458

$
1.654

$
1.577

$
1.199

$
1.035

$
1.086

$
1.028

$
0.706

$
1.489

Accumulation Unit Value at end of period
$
1.960

$
1.697

$
1.458

$
1.654

$
1.577

$
1.199

$
1.035

$
1.086

$
1.028

$
0.706

Number of Accumulation Units outstanding at end of period (in thousands)
464

546

619

718

969

1,185

1,518

1,938

2,494

2,932

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
1.633

$
1.406

$
1.600

$
1.529

$
1.165

$
1.009

$
1.061

$
1.007

$
0.693

$
—

Accumulation Unit Value at end of period
$
1.882

$
1.633

$
1.406

$
1.600

$
1.529

$
1.165

$
1.009

$
1.061

$
1.007

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
170

190

253

303

392

646

688

825

1,042

—



 
85

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Global Equity Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.065

$
25.428

$
26.013

$
25.257

$
19.929

$
16.296

$
17.178

$
15.419

$
11.782

$
17.942

Accumulation Unit Value at end of period
$
33.295

$
27.065

$
25.428

$
26.013

$
25.257

$
19.929

$
16.296

$
17.178

$
15.419

$
11.782

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

2

2

2

2

3

3

4

4

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.088

$
23.618

$
24.210

$
23.553

$
18.622

$
15.257

$
16.115

$
14.494

$
11.098

$
16.934

Accumulation Unit Value at end of period
$
30.802

$
25.088

$
23.618

$
24.210

$
23.553

$
18.622

$
15.257

$
16.115

$
14.494

$
11.098

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.357

$
24.837

$
25.484

$
24.818

$
19.641

$
16.109

$
17.032

$
15.334

$
11.752

$
17.950

Accumulation Unit Value at end of period
$
32.327

$
26.357

$
24.837

$
25.484

$
24.818

$
19.641

$
16.109

$
17.032

$
15.334

$
11.752

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.510

$
24.087

$
24.764

$
24.165

$
19.163

$
15.748

$
16.684

$
15.050

$
11.558

$
17.689

Accumulation Unit Value at end of period
$
31.226

$
25.510

$
24.087

$
24.764

$
24.165

$
19.163

$
15.748

$
16.684

$
15.050

$
11.558

Number of Accumulation Units outstanding at end of period (in thousands)
23

30

37

38

48

43

46

46

43

51

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
25.510

$
24.087

$
24.764

$
24.165

$
19.163

$
15.748

$
16.684

$
15.050

$
11.558

$
17.689

Accumulation Unit Value at end of period
$
31.226

$
25.510

$
24.087

$
24.764

$
24.165

$
19.163

$
15.748

$
16.684

$
15.050

$
11.558

Number of Accumulation Units outstanding at end of period (in thousands)
23

30

37

38

48

43

46

46

43

51

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.515

$
22.259

$
22.942

$
22.443

$
17.842

$
14.699

$
15.611

$
14.118

$
10.869

$
—

Accumulation Unit Value at end of period
$
28.712

$
23.515

$
22.259

$
22.942

$
22.443

$
17.842

$
14.699

$
15.611

$
14.118

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

1

1

2

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.236

$
22.006

$
22.693

$
22.210

$
17.666

$
14.561

$
15.473

$
14.000

$
10.784

$
16.554

Accumulation Unit Value at end of period
$
28.357

$
23.236

$
22.006

$
22.693

$
22.210

$
17.666

$
14.561

$
15.473

$
14.000

$
10.784

Number of Accumulation Units outstanding at end of period (in thousands)
11

13

15

16

24

24

34

34

42

53

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.283

$
19.257

$
19.908

$
19.533

$
15.576

$
12.870

$
13.710

$
12.436

$
9.603

$
—

Accumulation Unit Value at end of period
$
24.692

$
20.283

$
19.257

$
19.908

$
19.533

$
15.576

$
12.870

$
13.710

$
12.436

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
4

3

2

3

8

8

7

33

33

—



86
 

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Growth Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.621

$
18.332

$
17.189

$
15.913

$
11.727

$
10.075

$
10.194

$
8.914

$
6.530

$
10.523

Accumulation Unit Value at end of period
$
24.262

$
18.621

$
18.332

$
17.189

$
15.913

$
11.727

$
10.075

$
10.194

$
8.914

$
6.530

Number of Accumulation Units outstanding at end of period (in thousands)
4

4

4

5

5

3

3

3

3

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.847

$
17.606

$
16.541

$
15.343

$
11.330

$
9.754

$
9.889

$
8.664

$
6.360

$
10.269

Accumulation Unit Value at end of period
$
23.207

$
17.847

$
17.606

$
16.541

$
15.343

$
11.330

$
9.754

$
9.889

$
8.664

$
6.360

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.134

$
17.906

$
16.840

$
15.636

$
11.558

$
9.960

$
10.108

$
8.865

$
6.514

$
10.528

Accumulation Unit Value at end of period
$
23.556

$
18.134

$
17.906

$
16.840

$
15.636

$
11.558

$
9.960

$
10.108

$
8.865

$
6.514

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.551

$
17.365

$
16.364

$
15.225

$
11.276

$
9.736

$
9.901

$
8.701

$
6.406

$
10.375

Accumulation Unit Value at end of period
$
22.754

$
17.551

$
17.365

$
16.364

$
15.225

$
11.276

$
9.736

$
9.901

$
8.701

$
6.406

Number of Accumulation Units outstanding at end of period (in thousands)
294

386

443

538

743

343

310

310

268

180

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.551

$
17.365

$
16.364

$
15.225

$
11.276

$
9.736

$
9.901

$
8.701

$
6.406

$
10.375

Accumulation Unit Value at end of period
$
22.754

$
17.551

$
17.365

$
16.364

$
15.225

$
11.276

$
9.736

$
9.901

$
8.701

$
6.406

Number of Accumulation Units outstanding at end of period (in thousands)
294

386

443

538

743

343

310

310

268

180

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.728

$
16.592

$
15.675

$
14.620

$
10.855

$
9.397

$
9.579

$
8.439

$
6.229

$
—

Accumulation Unit Value at end of period
$
21.632

$
16.728

$
16.592

$
15.675

$
14.620

$
10.855

$
9.397

$
9.579

$
8.439

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
5

6

6

6

6

7

5

6

6

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.530

$
16.404

$
15.505

$
14.469

$
10.748

$
9.309

$
9.494

$
8.369

$
6.180

$
10.039

Accumulation Unit Value at end of period
$
21.366

$
16.530

$
16.404

$
15.505

$
14.469

$
10.748

$
9.309

$
9.494

$
8.369

$
6.180

Number of Accumulation Units outstanding at end of period (in thousands)
63

72

85

113

127

99

121

143

182

167

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.613

$
10.559

$
10.005

$
9.360

$
6.970

$
6.052

$
6.188

$
5.468

$
4.048

$
—

Accumulation Unit Value at end of period
$
13.684

$
10.613

$
10.559

$
10.005

$
9.360

$
6.970

$
6.052

$
6.188

$
5.468

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
15

16

24

28

33

44

54

51

55

—




 
87

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS High Yield Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.502

$
10.191

$
10.731

$
10.527

$
10.153

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
12.167

$
11.502

$
10.191

$
10.731

$
10.527

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1

3

3

3

2

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.421

$
10.140

$
10.698

$
10.516

$
10.150

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
12.058

$
11.421

$
10.140

$
10.698

$
10.516

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.381

$
10.114

$
10.682

$
10.510

$
10.149

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
12.003

$
11.381

$
10.114

$
10.682

$
10.510

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.301

$
10.064

$
10.650

$
10.500

$
10.146

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.895

$
11.301

$
10.064

$
10.650

$
10.500

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
528

589

681

836

1,126

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.301

$
10.064

$
10.650

$
10.500

$
10.146

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.895

$
11.301

$
10.064

$
10.650

$
10.500

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
528

589

681

836

1,126

—

—

—

—

—

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.203

$
10.001

$
10.610

$
10.486

$
10.142

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.762

$
11.203

$
10.001

$
10.610

$
10.486

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
23

23

24

27

25

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.183

$
9.988

$
10.602

$
10.484

$
10.142

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.736

$
11.183

$
9.988

$
10.602

$
10.484

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
134

154

179

235

289

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
11.085

$
9.926

$
10.562

$
10.470

$
10.138

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.604

$
11.085

$
9.926

$
10.562

$
10.470

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
38

39

51

63

88

—

—

—

—

—



 
88

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Investors Trust Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.963

$
18.541

$
18.659

$
16.952

$
12.947

$
10.956

$
11.296

$
10.254

$
8.150

$
12.282

Accumulation Unit Value at end of period
$
24.415

$
19.963

$
18.541

$
18.659

$
16.952

$
12.947

$
10.956

$
11.296

$
10.254

$
8.150

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

1

2

2

2

2

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.183

$
15.991

$
16.125

$
14.679

$
11.233

$
9.525

$
9.840

$
8.951

$
7.128

$
10.764

Accumulation Unit Value at end of period
$
20.973

$
17.183

$
15.991

$
16.125

$
14.679

$
11.233

$
9.525

$
9.840

$
8.951

$
7.128

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.440

$
18.110

$
18.280

$
16.658

$
12.760

$
10.830

$
11.200

$
10.198

$
8.129

$
12.288

Accumulation Unit Value at end of period
$
23.705

$
19.440

$
18.110

$
18.280

$
16.658

$
12.760

$
10.830

$
11.200

$
10.198

$
8.129

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.816

$
17.563

$
17.763

$
16.219

$
12.449

$
10.588

$
10.971

$
10.009

$
7.995

$
12.109

Accumulation Unit Value at end of period
$
22.897

$
18.816

$
17.563

$
17.763

$
16.219

$
12.449

$
10.588

$
10.971

$
10.009

$
7.995

Number of Accumulation Units outstanding at end of period (in thousands)
443

543

640

861

1,174

1,971

2,447

2,689

2,878

2,970

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.816

$
17.563

$
17.763

$
16.219

$
12.449

$
10.588

$
10.971

$
10.009

$
7.995

$
12.109

Accumulation Unit Value at end of period
$
22.897

$
18.816

$
17.563

$
17.763

$
16.219

$
12.449

$
10.588

$
10.971

$
10.009

$
7.995

Number of Accumulation Units outstanding at end of period (in thousands)
443

543

640

861

1,174

1,971

2,447

2,689

2,878

2,970

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.105

$
15.070

$
15.280

$
13.987

$
10.763

$
9.176

$
9.532

$
8.718

$
6.981

$
—

Accumulation Unit Value at end of period
$
19.549

$
16.105

$
15.070

$
15.280

$
13.987

$
10.763

$
9.176

$
9.532

$
8.718

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
5

5

14

15

15

17

18

17

20

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.914

$
14.899

$
15.114

$
13.842

$
10.657

$
9.090

$
9.448

$
8.645

$
6.926

$
10.522

Accumulation Unit Value at end of period
$
19.308

$
15.914

$
14.899

$
15.114

$
13.842

$
10.657

$
9.090

$
9.448

$
8.645

$
6.926

Number of Accumulation Units outstanding at end of period (in thousands)
124

154

172

227

333

470

627

725

877

1,008

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.171

$
14.239

$
14.481

$
13.295

$
10.261

$
8.775

$
9.142

$
8.387

$
6.736

$
—

Accumulation Unit Value at end of period
$
18.360

$
15.171

$
14.239

$
14.481

$
13.295

$
10.261

$
8.775

$
9.142

$
8.387

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
43

52

66

90

133

193

226

269

319

—



 
89

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Massachusetts Investors Growth Stock Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.735

$
10.206

$
10.402

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.670

$
10.735

$
10.206

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.694

$
10.188

$
10.399

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.590

$
10.694

$
10.188

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.673

$
10.178

$
10.397

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.550

$
10.673

$
10.178

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.632

$
10.160

$
10.394

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.472

$
10.632

$
10.160

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
19

34

42

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.632

$
10.160

$
10.394

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.472

$
10.632

$
10.160

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
19

34

42

—

—

—

—

—

—

—

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.582

$
10.136

$
10.390

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.374

$
10.582

$
10.136

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
3

5

5

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.571

$
10.132

$
10.389

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.354

$
10.571

$
10.132

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
18

15

17

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.521

$
10.109

$
10.385

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
13.257

$
10.521

$
10.109

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
2

6

6

—

—

—

—

—

—

—



 
90

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Mid Cap Growth Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
10.007

$
9.620

$
9.274

$
8.592

$
6.292

$
5.446

$
5.844

$
4.546

$
3.234

$
6.732

Accumulation Unit Value at end of period
$
12.601

$
10.007

$
9.620

$
9.274

$
8.592

$
6.292

$
5.446

$
5.844

$
4.546

$
3.234

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

10

12

12

14

1

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.664

$
9.309

$
8.993

$
8.348

$
6.125

$
5.313

$
5.712

$
4.452

$
3.173

$
6.620

Accumulation Unit Value at end of period
$
12.145

$
9.664

$
9.309

$
8.993

$
8.348

$
6.125

$
5.313

$
5.712

$
4.452

$
3.173

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.732

$
9.384

$
9.074

$
8.432

$
6.193

$
5.377

$
5.787

$
4.515

$
3.221

$
6.727

Accumulation Unit Value at end of period
$
12.218

$
9.732

$
9.384

$
9.074

$
8.432

$
6.193

$
5.377

$
5.787

$
4.515

$
3.221

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

1

1

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.432

$
9.112

$
8.829

$
8.221

$
6.050

$
5.263

$
5.676

$
4.437

$
3.172

$
6.638

Accumulation Unit Value at end of period
$
11.817

$
9.432

$
9.112

$
8.829

$
8.221

$
6.050

$
5.263

$
5.676

$
4.437

$
3.172

Number of Accumulation Units outstanding at end of period (in thousands)
155

156

193

204

272

392

520

645

577

507

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.432

$
9.112

$
8.829

$
8.221

$
6.050

$
5.263

$
5.676

$
4.437

$
3.172

$
6.638

Accumulation Unit Value at end of period
$
11.817

$
9.432

$
9.112

$
8.829

$
8.221

$
6.050

$
5.263

$
5.676

$
4.437

$
3.172

Number of Accumulation Units outstanding at end of period (in thousands)
155

156

193

204

272

392

520

645

577

507

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.042

$
8.758

$
8.507

$
7.940

$
5.859

$
5.109

$
5.523

$
4.329

$
3.102

$
—

Accumulation Unit Value at end of period
$
11.301

$
9.042

$
8.758

$
8.507

$
7.940

$
5.859

$
5.109

$
5.523

$
4.329

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
5

5

6

7

7

10

8

12

6

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
8.961

$
8.684

$
8.439

$
7.881

$
5.818

$
5.076

$
5.490

$
4.305

$
3.087

$
6.479

Accumulation Unit Value at end of period
$
11.194

$
8.961

$
8.684

$
8.439

$
7.881

$
5.818

$
5.076

$
5.490

$
4.305

$
3.087

Number of Accumulation Units outstanding at end of period (in thousands)
83

114

137

154

180

236

272

335

341

374

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.310

$
9.044

$
8.812

$
8.249

$
6.105

$
5.340

$
5.790

$
4.552

$
3.272

$
—

Accumulation Unit Value at end of period
$
11.601

$
9.310

$
9.044

$
8.812

$
8.249

$
6.105

$
5.340

$
5.790

$
4.552

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
12

16

23

29

43

79

100

143

169

—



 
91

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS New Discovery Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
29.849

$
27.606

$
28.376

$
30.858

$
21.991

$
18.295

$
20.563

$
15.211

$
9.401

$
15.628

Accumulation Unit Value at end of period
$
37.486

$
29.849

$
27.606

$
28.376

$
30.858

$
21.991

$
18.295

$
20.563

$
15.211

$
9.401

Number of Accumulation Units outstanding at end of period (in thousands)
1

3

3

3

3

3

3

3

2

1

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
26.661

$
24.706

$
25.447

$
27.728

$
19.800

$
16.505

$
18.588

$
13.778

$
8.532

$
14.212

Accumulation Unit Value at end of period
$
33.415

$
26.661

$
24.706

$
25.447

$
27.728

$
19.800

$
16.505

$
18.588

$
13.778

$
8.532

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
29.068

$
26.963

$
27.799

$
30.322

$
21.673

$
18.086

$
20.388

$
15.127

$
9.377

$
15.635

Accumulation Unit Value at end of period
$
36.395

$
29.068

$
26.963

$
27.799

$
30.322

$
21.673

$
18.086

$
20.388

$
15.127

$
9.377

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.133

$
26.149

$
27.014

$
29.524

$
21.145

$
17.680

$
19.971

$
14.847

$
9.222

$
15.407

Accumulation Unit Value at end of period
$
35.155

$
28.133

$
26.149

$
27.014

$
29.524

$
21.145

$
17.680

$
19.971

$
14.847

$
9.222

Number of Accumulation Units outstanding at end of period (in thousands)
171

209

253

322

423

702

850

965

1,104

1,290

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.133

$
26.149

$
27.014

$
29.524

$
21.145

$
17.680

$
19.971

$
14.847

$
9.222

$
15.407

Accumulation Unit Value at end of period
$
35.155

$
28.133

$
26.149

$
27.014

$
29.524

$
21.145

$
17.680

$
19.971

$
14.847

$
9.222

Number of Accumulation Units outstanding at end of period (in thousands)
171

209

253

322

423

702

850

965

1,104

1,290

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.988

$
23.284

$
24.114

$
26.421

$
18.970

$
15.901

$
18.007

$
13.420

$
8.357

$
—

Accumulation Unit Value at end of period
$
31.147

$
24.988

$
23.284

$
24.114

$
26.421

$
18.970

$
15.901

$
18.007

$
13.420

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

2

4

7

7

7

8

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.692

$
23.020

$
23.852

$
26.147

$
18.783

$
15.752

$
17.847

$
13.308

$
8.291

$
13.893

Accumulation Unit Value at end of period
$
30.763

$
24.692

$
23.020

$
23.852

$
26.147

$
18.783

$
15.752

$
17.847

$
13.308

$
8.291

Number of Accumulation Units outstanding at end of period (in thousands)
54

68

75

100

143

197

262

324

388

484

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.743

$
14.713

$
15.284

$
16.796

$
12.096

$
10.169

$
11.550

$
8.634

$
5.393

$
—

Accumulation Unit Value at end of period
$
19.564

$
15.743

$
14.713

$
15.284

$
16.796

$
12.096

$
10.169

$
11.550

$
8.634

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
24

32

37

54

74

117

132

157

191

—




 
92

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Research International Portfolio
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.460

$
9.609

$
10.522

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
12.034

$
9.460

$
9.609

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

—

—

—

—

—

—

—

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.424

$
9.591

$
10.519

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.964

$
9.424

$
9.591

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.406

$
9.582

$
10.518

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.929

$
9.406

$
9.582

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

1

1

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.370

$
9.565

$
10.515

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.860

$
9.370

$
9.565

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
245

310

351

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.370

$
9.565

$
10.515

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.860

$
9.370

$
9.565

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
245

310

351

—

—

—

—

—

—

—

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.325

$
9.543

$
10.511

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.774

$
9.325

$
9.543

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.316

$
9.538

$
10.510

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.757

$
9.316

$
9.538

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
43

62

65

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
9.272

$
9.516

$
10.506

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
11.671

$
9.272

$
9.516

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
7

8

12

—

—

—

—

—

—

—



 
93

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Research Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.906

$
20.318

$
20.328

$
18.603

$
14.183

$
12.197

$
12.357

$
10.753

$
8.308

$
13.109

Accumulation Unit Value at end of period
$
26.796

$
21.906

$
20.318

$
20.328

$
18.603

$
14.183

$
12.197

$
12.357

$
10.753

$
8.308

Number of Accumulation Units outstanding at end of period (in thousands)
2

2

3

5

6

6

7

9

9

12

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.393

$
19.882

$
19.932

$
18.277

$
13.962

$
12.032

$
12.214

$
10.650

$
8.244

$
13.035

Accumulation Unit Value at end of period
$
26.117

$
21.393

$
19.882

$
19.932

$
18.277

$
13.962

$
12.032

$
12.214

$
10.650

$
8.244

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.141

$
19.668

$
19.737

$
18.117

$
13.853

$
11.950

$
12.143

$
10.598

$
8.212

$
12.998

Accumulation Unit Value at end of period
$
25.784

$
21.141

$
19.668

$
19.737

$
18.117

$
13.853

$
11.950

$
12.143

$
10.598

$
8.212

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.647

$
19.246

$
19.352

$
17.799

$
13.638

$
11.787

$
12.002

$
10.496

$
8.150

$
12.925

Accumulation Unit Value at end of period
$
25.130

$
20.647

$
19.246

$
19.352

$
17.799

$
13.638

$
11.787

$
12.002

$
10.496

$
8.150

Number of Accumulation Units outstanding at end of period (in thousands)
19

19

24

34

43

66

57

54

51

35

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.647

$
19.246

$
19.352

$
17.799

$
13.638

$
11.787

$
12.002

$
10.496

$
8.150

$
12.925

Accumulation Unit Value at end of period
$
25.130

$
20.647

$
19.246

$
19.352

$
17.799

$
13.638

$
11.787

$
12.002

$
10.496

$
8.150

Number of Accumulation Units outstanding at end of period (in thousands)
19

19

24

34

43

66

57

54

51

35

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.044

$
18.731

$
18.882

$
17.410

$
13.373

$
11.587

$
11.828

$
10.370

$
8.072

$
—

Accumulation Unit Value at end of period
$
24.336

$
20.044

$
18.731

$
18.882

$
17.410

$
13.373

$
11.587

$
11.828

$
10.370

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

1

—

—

—

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.926

$
18.630

$
18.789

$
17.333

$
13.321

$
11.548

$
11.793

$
10.345

$
8.056

$
12.815

Accumulation Unit Value at end of period
$
24.181

$
19.926

$
18.630

$
18.789

$
17.333

$
13.321

$
11.548

$
11.793

$
10.345

$
8.056

Number of Accumulation Units outstanding at end of period (in thousands)
19

21

21

32

38

21

25

24

19

13

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.345

$
18.132

$
18.333

$
16.955

$
13.062

$
11.352

$
11.622

$
10.220

$
7.979

$
—

Accumulation Unit Value at end of period
$
23.417

$
19.345

$
18.132

$
18.333

$
16.955

$
13.062

$
11.352

$
11.622

$
10.220

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

1

—

—

—

—

2

3

—



 
94

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Total Return Bond Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.135

$
14.644

$
14.814

$
14.115

$
14.384

$
13.514

$
12.768

$
11.982

$
10.403

$
10.746

Accumulation Unit Value at end of period
$
15.675

$
15.135

$
14.644

$
14.814

$
14.115

$
14.384

$
13.514

$
12.768

$
11.982

$
10.403

Number of Accumulation Units outstanding at end of period (in thousands)
16

16

16

20

20

8

5

6

6

1

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.782

$
14.331

$
14.526

$
13.869

$
14.161

$
13.331

$
12.620

$
11.867

$
10.324

$
10.686

Accumulation Unit Value at end of period
$
15.279

$
14.782

$
14.331

$
14.526

$
13.869

$
14.161

$
13.331

$
12.620

$
11.867

$
10.324

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.608

$
14.177

$
14.384

$
13.747

$
14.051

$
13.240

$
12.547

$
11.810

$
10.285

$
10.656

Accumulation Unit Value at end of period
$
15.084

$
14.608

$
14.177

$
14.384

$
13.747

$
14.051

$
13.240

$
12.547

$
11.810

$
10.285

Number of Accumulation Units outstanding at end of period (in thousands)
3

4

4

5

5

1

2

2

2

2

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.267

$
13.873

$
14.105

$
13.507

$
13.833

$
13.061

$
12.402

$
11.697

$
10.207

$
10.596

Accumulation Unit Value at end of period
$
14.703

$
14.267

$
13.873

$
14.105

$
13.507

$
13.833

$
13.061

$
12.402

$
11.697

$
10.207

Number of Accumulation Units outstanding at end of period (in thousands)
2,090

2,214

2,412

2,922

3,769

1,413

1,353

1,358

1,188

949

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.267

$
13.873

$
14.105

$
13.507

$
13.833

$
13.061

$
12.402

$
11.697

$
10.207

$
10.596

Accumulation Unit Value at end of period
$
14.703

$
14.267

$
13.873

$
14.105

$
13.507

$
13.833

$
13.061

$
12.402

$
11.697

$
10.207

Number of Accumulation Units outstanding at end of period (in thousands)
2,090

2,214

2,412

2,922

3,769

1,413

1,353

1,358

1,188

949

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.852

$
13.503

$
13.763

$
13.212

$
13.566

$
12.841

$
12.223

$
11.557

$
10.110

$
—

Accumulation Unit Value at end of period
$
14.239

$
13.852

$
13.503

$
13.763

$
13.212

$
13.566

$
12.841

$
12.223

$
11.557

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

2

2

5

4

3

3

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.770

$
13.431

$
13.696

$
13.154

$
13.513

$
12.797

$
12.188

$
11.530

$
10.091

$
10.507

Accumulation Unit Value at end of period
$
14.148

$
13.770

$
13.431

$
13.696

$
13.154

$
13.513

$
12.797

$
12.188

$
11.530

$
10.091

Number of Accumulation Units outstanding at end of period (in thousands)
206

198

241

337

402

332

400

371

369

231

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.369

$
13.072

$
13.364

$
12.868

$
13.251

$
12.581

$
12.012

$
11.392

$
9.995

$
—

Accumulation Unit Value at end of period
$
13.702

$
13.369

$
13.072

$
13.364

$
12.868

$
13.251

$
12.581

$
12.012

$
11.392

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
29

29

34

39

93

121

136

96

80

—



 
95

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Total Return Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
24.083

$
22.264

$
22.538

$
20.950

$
17.748

$
16.089

$
15.944

$
14.627

$
12.499

$
16.188

Accumulation Unit Value at end of period
$
26.817

$
24.083

$
22.264

$
22.538

$
20.950

$
17.748

$
16.089

$
15.944

$
14.627

$
12.499

Number of Accumulation Units outstanding at end of period (in thousands)
8

9

10

14

16

25

26

29

33

37

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.731

$
20.130

$
20.418

$
19.017

$
16.143

$
14.663

$
14.560

$
13.385

$
11.460

$
14.872

Accumulation Unit Value at end of period
$
24.149

$
21.731

$
20.130

$
20.418

$
19.017

$
16.143

$
14.663

$
14.560

$
13.385

$
11.460

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
23.453

$
21.746

$
22.080

$
20.586

$
17.492

$
15.904

$
15.808

$
14.546

$
12.467

$
16.196

Accumulation Unit Value at end of period
$
26.036

$
23.453

$
21.746

$
22.080

$
20.586

$
17.492

$
15.904

$
15.808

$
14.546

$
12.467

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

1

4

7

4

4

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.699

$
21.090

$
21.456

$
20.044

$
17.066

$
15.548

$
15.485

$
14.278

$
12.261

$
15.960

Accumulation Unit Value at end of period
$
25.149

$
22.699

$
21.090

$
21.456

$
20.044

$
17.066

$
15.548

$
15.485

$
14.278

$
12.261

Number of Accumulation Units outstanding at end of period (in thousands)
1,196

1,389

1,646

2,183

2,948

4,675

5,379

5,949

6,318

6,881

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.699

$
21.090

$
21.456

$
20.044

$
17.066

$
15.548

$
15.485

$
14.278

$
12.261

$
15.960

Accumulation Unit Value at end of period
$
25.149

$
22.699

$
21.090

$
21.456

$
20.044

$
17.066

$
15.548

$
15.485

$
14.278

$
12.261

Number of Accumulation Units outstanding at end of period (in thousands)
1,196

1,389

1,646

2,183

2,948

4,675

5,379

5,949

6,318

6,881

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.368

$
18.971

$
19.349

$
18.121

$
15.467

$
14.127

$
14.105

$
13.037

$
11.224

$
—

Accumulation Unit Value at end of period
$
22.510

$
20.368

$
18.971

$
19.349

$
18.121

$
15.467

$
14.127

$
14.105

$
13.037

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
37

57

58

61

64

69

81

84

93

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.127

$
18.756

$
19.139

$
17.933

$
15.315

$
13.994

$
13.980

$
12.928

$
11.136

$
14.539

Accumulation Unit Value at end of period
$
22.233

$
20.127

$
18.756

$
19.139

$
17.933

$
15.315

$
13.994

$
13.980

$
12.928

$
11.136

Number of Accumulation Units outstanding at end of period (in thousands)
388

437

498

632

846

1,106

1,336

1,541

1,773

2,097

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.368

$
17.159

$
17.553

$
16.489

$
14.116

$
12.931

$
12.950

$
12.006

$
10.367

$
—

Accumulation Unit Value at end of period
$
20.238

$
18.368

$
17.159

$
17.553

$
16.489

$
14.116

$
12.931

$
12.950

$
12.006

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
124

147

179

217

282

417

491

684

810

—



 
96

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
MFS Value Series
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
31.754

$
28.070

$
28.520

$
26.028

$
19.318

$
16.758

$
16.952

$
15.329

$
12.598

$
18.846

Accumulation Unit Value at end of period
$
37.043

$
31.754

$
28.070

$
28.520

$
26.028

$
19.318

$
16.758

$
16.952

$
15.329

$
12.598

Number of Accumulation Units outstanding at end of period (in thousands)
4

5

6

7

7

7

7

9

7

4

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.898

$
27.368

$
27.862

$
25.479

$
18.948

$
16.469

$
16.694

$
15.125

$
12.456

$
18.671

Accumulation Unit Value at end of period
$
35.972

$
30.898

$
27.368

$
27.862

$
25.479

$
18.948

$
16.469

$
16.694

$
15.125

$
12.456

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
30.759

$
27.272

$
27.792

$
25.440

$
18.938

$
16.477

$
16.719

$
15.163

$
12.499

$
18.755

Accumulation Unit Value at end of period
$
35.775

$
30.759

$
27.272

$
27.792

$
25.440

$
18.938

$
16.477

$
16.719

$
15.163

$
12.499

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

2

2

2

2

2

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
29.929

$
26.590

$
27.151

$
24.903

$
18.575

$
16.194

$
16.464

$
14.962

$
12.358

$
18.581

Accumulation Unit Value at end of period
$
34.740

$
29.929

$
26.590

$
27.151

$
24.903

$
18.575

$
16.194

$
16.464

$
14.962

$
12.358

Number of Accumulation Units outstanding at end of period (in thousands)
313

373

450

585

779

889

1,047

1,138

1,147

1,111

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
29.929

$
26.590

$
27.151

$
24.903

$
18.575

$
16.194

$
16.464

$
14.962

$
12.358

$
18.581

Accumulation Unit Value at end of period
$
34.740

$
29.929

$
26.590

$
27.151

$
24.903

$
18.575

$
16.194

$
16.464

$
14.962

$
12.358

Number of Accumulation Units outstanding at end of period (in thousands)
313

373

450

585

779

889

1,047

1,138

1,147

1,111

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.924

$
25.761

$
26.371

$
24.247

$
18.131

$
15.847

$
16.152

$
14.715

$
12.184

$
—

Accumulation Unit Value at end of period
$
33.489

$
28.924

$
25.761

$
26.371

$
24.247

$
18.131

$
15.847

$
16.152

$
14.715

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
1

—

—

—

—

—

—

—

2

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
28.727

$
25.598

$
26.217

$
24.118

$
18.044

$
15.778

$
16.090

$
14.666

$
12.150

$
18.322

Accumulation Unit Value at end of period
$
33.245

$
28.727

$
25.598

$
26.217

$
24.118

$
18.044

$
15.778

$
16.090

$
14.666

$
12.150

Number of Accumulation Units outstanding at end of period (in thousands)
54

70

77

103

142

175

222

239

226

240

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
27.762

$
24.800

$
25.463

$
23.484

$
17.613

$
15.440

$
15.784

$
14.423

$
11.979

$
—

Accumulation Unit Value at end of period
$
32.047

$
27.762

$
24.800

$
25.463

$
23.484

$
17.613

$
15.440

$
15.784

$
14.423

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
34

36

42

49

61

87

88

157

163

—




 
97

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Putnam VT Investors Fund (a)
 
 
 
 
 
 
 
 
 
 
With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
30.187

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Accumulation Unit Value at end of period
$
30.187

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—



 
98

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Templeton Developing Markets VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.761

$
19.487

$
24.391

$
26.764

$
27.193

$
24.183

$
28.923

$
24.755

$
14.405

$
30.662

Accumulation Unit Value at end of period
$
31.742

$
22.761

$
19.487

$
24.391

$
26.764

$
27.193

$
24.183

$
28.923

$
24.755

$
14.405

Number of Accumulation Units outstanding at end of period (in thousands)
—

2

2

2

3

1

3

5

5

5

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.131

$
16.413

$
20.584

$
22.632

$
23.040

$
20.532

$
24.604

$
21.101

$
12.303

$
26.241

Accumulation Unit Value at end of period
$
26.627

$
19.131

$
16.413

$
20.584

$
22.632

$
23.040

$
20.532

$
24.604

$
21.101

$
12.303

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
22.164

$
19.034

$
23.895

$
26.299

$
26.800

$
23.906

$
28.677

$
24.619

$
14.368

$
30.676

Accumulation Unit Value at end of period
$
30.818

$
22.164

$
19.034

$
23.895

$
26.299

$
26.800

$
23.906

$
28.677

$
24.619

$
14.368

Number of Accumulation Units outstanding at end of period (in thousands)
1

1

1

1

1

2

2

2

1

1

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.452

$
18.459

$
23.220

$
25.607

$
26.148

$
23.370

$
28.091

$
24.164

$
14.131

$
30.230

Accumulation Unit Value at end of period
$
29.769

$
21.452

$
18.459

$
23.220

$
25.607

$
26.148

$
23.370

$
28.091

$
24.164

$
14.131

Number of Accumulation Units outstanding at end of period (in thousands)
92

99

130

163

226

323

398

474

472

424

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
21.452

$
18.459

$
23.220

$
25.607

$
26.148

$
23.370

$
28.091

$
24.164

$
14.131

$
30.230

Accumulation Unit Value at end of period
$
29.769

$
21.452

$
18.459

$
23.220

$
25.607

$
26.148

$
23.370

$
28.091

$
24.164

$
14.131

Number of Accumulation Units outstanding at end of period (in thousands)
92

99

130

163

226

323

398

474

472

424

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.931

$
15.468

$
19.506

$
21.565

$
22.075

$
19.780

$
23.835

$
20.554

$
12.050

$
—

Accumulation Unit Value at end of period
$
24.820

$
17.931

$
15.468

$
19.506

$
21.565

$
22.075

$
19.780

$
23.835

$
20.554

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
2

4

4

7

7

7

7

8

8

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.718

$
15.292

$
19.294

$
21.342

$
21.857

$
19.595

$
23.623

$
20.382

$
11.955

$
25.652

Accumulation Unit Value at end of period
$
24.514

$
17.718

$
15.292

$
19.294

$
21.342

$
21.857

$
19.595

$
23.623

$
20.382

$
11.955

Number of Accumulation Units outstanding at end of period (in thousands)
38

47

54

64

96

123

132

144

181

143

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
20.563

$
17.791

$
22.504

$
24.954

$
25.621

$
23.026

$
27.830

$
24.071

$
14.154

$
—

Accumulation Unit Value at end of period
$
28.378

$
20.563

$
17.791

$
22.504

$
24.954

$
25.621

$
23.026

$
27.830

$
24.071

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
7

8

9

14

17

40

50

63

68

—



 
99

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Templeton Foreign VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.909

$
14.971

$
16.147

$
18.324

$
15.029

$
12.819

$
14.467

$
13.459

$
9.905

$
16.755

Accumulation Unit Value at end of period
$
18.407

$
15.909

$
14.971

$
16.147

$
18.324

$
15.029

$
12.819

$
14.467

$
13.459

$
9.905

Number of Accumulation Units outstanding at end of period (in thousands)
7

7

7

7

6

6

8

8

9

13

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.795

$
13.950

$
15.076

$
17.144

$
14.088

$
12.041

$
13.617

$
12.693

$
9.360

$
15.865

Accumulation Unit Value at end of period
$
17.084

$
14.795

$
13.950

$
15.076

$
17.144

$
14.088

$
12.041

$
13.617

$
12.693

$
9.360

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

—

—

—

—

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.492

$
14.622

$
15.818

$
18.006

$
14.812

$
12.672

$
14.345

$
13.385

$
9.880

$
16.763

Accumulation Unit Value at end of period
$
17.872

$
15.492

$
14.622

$
15.818

$
18.006

$
14.812

$
12.672

$
14.345

$
13.385

$
9.880

Number of Accumulation Units outstanding at end of period (in thousands)
5

5

5

4

4

5

4

2

—

—

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.994

$
14.181

$
15.371

$
17.532

$
14.451

$
12.388

$
14.051

$
13.138

$
9.717

$
16.519

Accumulation Unit Value at end of period
$
17.263

$
14.994

$
14.181

$
15.371

$
17.532

$
14.451

$
12.388

$
14.051

$
13.138

$
9.717

Number of Accumulation Units outstanding at end of period (in thousands)
878

1,049

1,200

1,375

1,662

2,198

2,603

2,772

2,928

3,305

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
14.994

$
14.181

$
15.371

$
17.532

$
14.451

$
12.388

$
14.051

$
13.138

$
9.717

$
16.519

Accumulation Unit Value at end of period
$
17.263

$
14.994

$
14.181

$
15.371

$
17.532

$
14.451

$
12.388

$
14.051

$
13.138

$
9.717

Number of Accumulation Units outstanding at end of period (in thousands)
878

1,049

1,200

1,375

1,662

2,198

2,603

2,772

2,928

3,305

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.866

$
13.147

$
14.287

$
16.335

$
13.498

$
11.601

$
13.191

$
12.364

$
9.168

$
—

Accumulation Unit Value at end of period
$
15.924

$
13.866

$
13.147

$
14.287

$
16.335

$
13.498

$
11.601

$
13.191

$
12.364

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
2

2

3

3

2

5

5

6

9

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
13.702

$
12.998

$
14.131

$
16.166

$
13.365

$
11.492

$
13.074

$
12.260

$
9.095

$
15.509

Accumulation Unit Value at end of period
$
15.728

$
13.702

$
12.998

$
14.131

$
16.166

$
13.365

$
11.492

$
13.074

$
12.260

$
9.095

Number of Accumulation Units outstanding at end of period (in thousands)
219

251

282

320

398

543

659

726

891

1,049

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
12.650

$
12.030

$
13.112

$
15.037

$
12.463

$
10.743

$
12.252

$
11.519

$
8.566

$
—

Accumulation Unit Value at end of period
$
14.484

$
12.650

$
12.030

$
13.112

$
15.037

$
12.463

$
10.743

$
12.252

$
11.519

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
46

60

74

95

118

176

195

238

291

—



 
100

Sub-Account
As of December 31,
 
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Templeton Growth VIP Fund
 
 
 
 
 
 
 
 
 
 
Without Any Optional Benefits
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
19.301

$
17.757

$
19.151

$
19.874

$
15.322

$
12.764

$
13.838

$
12.995

$
9.997

$
17.480

Accumulation Unit Value at end of period
$
22.678

$
19.301

$
17.757

$
19.151

$
19.874

$
15.322

$
12.764

$
13.838

$
12.995

$
9.997

Number of Accumulation Units outstanding at end of period (in thousands)
3

3

4

5

11

17

22

32

38

43

With Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
17.511

$
16.143

$
17.445

$
18.140

$
14.013

$
11.696

$
12.706

$
11.956

$
9.216

$
16.148

Accumulation Unit Value at end of period
$
20.534

$
17.511

$
16.143

$
17.445

$
18.140

$
14.013

$
11.696

$
12.706

$
11.956

$
9.216

Number of Accumulation Units outstanding at end of period (in thousands)
—

—

—

—

—

—

1

1

1

1

With MAV/EPB Death Benefit
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.795

$
17.344

$
18.762

$
19.529

$
15.100

$
12.617

$
13.720

$
12.923

$
9.971

$
17.489

Accumulation Unit Value at end of period
$
22.018

$
18.795

$
17.344

$
18.762

$
19.529

$
15.100

$
12.617

$
13.720

$
12.923

$
9.971

Number of Accumulation Units outstanding at end of period (in thousands)
2

2

2

3

3

3

3

4

4

4

With MAV/EPB Death Benefit and Principal First Preferred
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.191

$
16.821

$
18.232

$
19.015

$
14.733

$
12.334

$
13.440

$
12.684

$
9.807

$
17.234

Accumulation Unit Value at end of period
$
21.268

$
18.191

$
16.821

$
18.232

$
19.015

$
14.733

$
12.334

$
13.440

$
12.684

$
9.807

Number of Accumulation Units outstanding at end of period (in thousands)
1,250

1,453

1,771

2,228

2,931

4,362

5,449

6,447

7,255

8,123

With Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
18.191

$
16.821

$
18.232

$
19.015

$
14.733

$
12.334

$
13.440

$
12.684

$
9.807

$
17.234

Accumulation Unit Value at end of period
$
21.268

$
18.191

$
16.821

$
18.232

$
19.015

$
14.733

$
12.334

$
13.440

$
12.684

$
9.807

Number of Accumulation Units outstanding at end of period (in thousands)
1,250

1,453

1,771

2,228

2,931

4,362

5,449

6,447

7,255

8,123

With Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.412

$
15.214

$
16.531

$
17.285

$
13.426

$
11.268

$
12.309

$
11.646

$
9.026

$
—

Accumulation Unit Value at end of period
$
19.140

$
16.412

$
15.214

$
16.531

$
17.285

$
13.426

$
11.268

$
12.309

$
11.646

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
4

5

4

6

6

7

7

7

8

—

With MAV/EPB Death Benefit and Principal First (50 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
16.218

$
15.041

$
16.352

$
17.106

$
13.293

$
11.163

$
12.199

$
11.548

$
8.955

$
15.785

Accumulation Unit Value at end of period
$
18.904

$
16.218

$
15.041

$
16.352

$
17.106

$
13.293

$
11.163

$
12.199

$
11.548

$
8.955

Number of Accumulation Units outstanding at end of period (in thousands)
244

252

288

348

427

539

683

822

1,027

1,194

With MAV/EPB Death Benefit and Principal First (75 BPS)
 
 
 
 
 
 
 
 
 
 
Accumulation Unit Value at beginning of period
$
15.438

$
14.354

$
15.644

$
16.406

$
12.781

$
10.760

$
11.789

$
11.187

$
8.697

$
—

Accumulation Unit Value at end of period
$
17.950

$
15.438

$
14.354

$
15.644

$
16.406

$
12.781

$
10.760

$
11.789

$
11.187

$
—

Number of Accumulation Units outstanding at end of period (in thousands)
69

78

86

111

165

271

353

483

653

—

(a) Inception date April 15, 2017


 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To The Contract Owners of Hartford Life Insurance Company Separate Account Seven and the Board of Directors of Hartford Life Insurance Company
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities as of December 31, 2017, the related statements of operations for the periods then ended, the statements of changes in net assets for each of the periods presented in two years then ended, the financial highlights in Note 6 for each of the periods presented in the five years then ended, and the related notes for each of the individual Sub-Accounts comprising Hartford Life Insurance Company Separate Account Seven (the “Account”):

American Century VP Value Fund
MFS® New Discovery Fund
American Century VP Growth Fund
MFS® Total Return Fund
AB VPS Balanced Wealth Strategy Portfolio
MFS® Value Fund
AB VPS International Value Portfolio
MFS® Total Return Bond Series
AB VPS Small/Mid Cap Value Portfolio
MFS® Research Fund
AB VPS Value Portfolio
MFS® High Yield Portfolio
AB VPS International Growth Portfolio
BlackRock Global Allocation V.I. Fund
Invesco V.I. Value Opportunities Fund
BlackRock Global Opportunities V.I. Fund
Invesco V.I. Core Equity Fund
BlackRock Large Cap Focus Growth V.I. Fund
Invesco V.I. Government Securities Fund
(Formerly BlackRock Large Cap Growth V.I. Fund)
Invesco V.I. High Yield Fund
BlackRock Equity Dividend V.I. Fund
Invesco V.I. International Growth Fund
Morgan Stanley VIF Core Plus Fixed Income Portfolio
Invesco V.I. Mid Cap Core Equity Fund
(Formerly UIF Core Plus Fixed Income Portfolio)
Invesco V.I. Small Cap Equity Fund
Morgan Stanley VIF Growth Portfolio
Invesco V.I. Balanced Risk Allocation Fund
(Formerly UIF Growth Portfolio)
Invesco V.I. Diversified Dividend Fund
Morgan Stanley VIF Mid Cap Growth Portfolio
Invesco V.I. Government Money Market Fund
(Formerly UIF Mid Cap Growth Portfolio)
American Century VP Mid Cap Value Fund
Invesco V.I. American Value Fund
American Funds Global Bond Fund
Morgan Stanley Mid Cap Growth Portfolio
American Funds Global Growth and Income Fund
BlackRock Capital Appreciation V.I. Fund
American Funds Asset Allocation Fund
Columbia Variable Portfolio - Asset Allocation Fund
American Funds Blue Chip Income and Growth Fund
Columbia Variable Portfolio - Dividend Opportunity Fund
American Funds Bond Fund
Columbia Variable Portfolio - Income Opportunities Fund
American Funds Global Growth Fund
Columbia Variable Portfolio - Mid Cap Growth Fund
American Funds Growth Fund
Oppenheimer Capital Appreciation Fund/VA
American Funds Growth-Income Fund
Oppenheimer Global Fund/VA
American Funds International Fund
Oppenheimer Main Street Fund®/VA
American Funds New World Fund
(Merged with Oppenheimer Equity Income Fund/VA)
American Funds Global Small Capitalization Fund
Oppenheimer Main Street Small Cap Fund/VA
Columbia Variable Portfolio - Small Company
Putnam VT Diversified Income Fund
Growth Fund
Putnam VT Global Asset Allocation Fund
Wells Fargo VT Omega Growth Fund
Putnam VT Growth Opportunities Fund
Fidelity® VIP Growth Portfolio
Putnam VT International Value Fund
Fidelity® VIP Contrafund® Portfolio
Putnam VT International Equity Fund
Fidelity® VIP Mid Cap Portfolio
Putnam VT Small Cap Value Fund
Fidelity® VIP Value Strategies Portfolio
JPMorgan Insurance Trust Core Bond Portfolio
Fidelity® VIP Dynamic Capital Appreciation Portfolio
JPMorgan Insurance Trust U.S. Equity Portfolio
Fidelity® VIP Strategic Income Portfolio
JPMorgan Insurance Trust Intrepid Mid Cap Portfolio
Franklin Rising Dividends VIP Fund
 
Franklin Income VIP Fund
JPMorgan Insurance Trust Mid Cap Value Portfolio
Franklin Large Cap Growth VIP Fund
Putnam VT Equity Income Fund
Franklin Global Real Estate VIP Fund
(Merged with Putnam VT Equity Income Fund)
Franklin Small-Mid Cap Growth VIP Fund
PIMCO All Asset Fund
Franklin Small Cap Value VIP Fund
PIMCO StocksPLUS Global Portfolio
Franklin Strategic Income VIP Fund
PIMCO Global Multi-Asset Managed Allocation Portfolio
Franklin Mutual Shares VIP Fund
Jennison 20/20 Focus Fund
Templeton Developing Markets VIP Fund
Jennison Fund
Templeton Foreign VIP Fund
Prudential Value Portfolio
Templeton Growth VIP Fund
Prudential SP International Growth Portfolio
Franklin Mutual Global Discovery VIP Fund
ClearBridge Variable Dividend Strategy Portfolio
Franklin Flex Cap Growth VIP Fund
Western Asset Variable Global High Yield Bond Portfolio
Templeton Global Bond VIP Fund
Clearbridge Variable Large Cap Value Portfolio
Hartford Balanced HLS Fund
Invesco V.I. Growth and Income Fund
Hartford Total Return Bond HLS Fund
Invesco V.I. Comstock Fund
Hartford Capital Appreciation HLS Fund
Invesco V.I. American Franchise Fund
Hartford Dividend and Growth HLS Fund
Invesco V.I. Mid Cap Growth Fund
Hartford Healthcare HLS Fund
Wells Fargo VT Index Asset Allocation Fund
Hartford Global Growth HLS Fund
Wells Fargo VT International Equity Fund
Hartford Disciplined Equity HLS Fund
Wells Fargo VT Small Cap Growth Fund
Hartford Growth Opportunities HLS Fund
Wells Fargo VT Discovery Fund
Hartford High Yield HLS Fund
Wells Fargo VT Opportunity Fund
Hartford International Opportunities HLS Fund
HIMCO VIT Index Fund
Hartford Small/Mid Cap Equity HLS Fund
HIMCO VIT Portfolio Diversifier Fund
Hartford MidCap HLS Fund
HIMCO VIT American Funds Asset Allocation Fund
Hartford MidCap Value HLS Fund
HIMCO VIT American Funds Blue Chip Income and Growth
Hartford Ultrashort Bond HLS Fund
Fund
Hartford Small Company HLS Fund
HIMCO VIT American Funds Bond Fund
Hartford SmallCap Growth HLS Fund
HIMCO VIT American Funds Global Bond Fund
Hartford Stock HLS Fund
HIMCO VIT American Funds Global Growth and Income
Hartford U.S. Government Securities HLS Fund
Fund
Hartford Value HLS Fund
HIMCO VIT American Funds Global Growth Fund
Rational Dividend Capture VA Fund (Formerly
HIMCO VIT American Funds Global Small Capitalization
Catalyst Dividend Capture Fund)
Fund
Rational Insider Buying VA Fund (Formerly
HIMCO VIT American Funds Growth Fund
Catalyst Insider Buyer Fund)
HIMCO VIT American Funds Growth-Income Fund
Lord Abbett Fundamental Equity Fund
HIMCO VIT American Funds International Fund
Lord Abbett Calibrated Dividend Growth Fund
HIMCO VIT American Funds New World Fund
Lord Abbett Bond Debenture Fund
MFS® Core Equity Portfolio
Lord Abbett Growth and Income Fund
MFS® Massachusetts Investors Growth Stock Portfolio
MFS® Growth Fund
MFS® Research International Portfolio
MFS® Global Equity Fund
Columbia Variable Portfolio - Large Cap Growth Fund
MFS® Investors Trust Fund
Columbia Variable Portfolio - Select International Equity
MFS® Mid Cap Growth Fund
Fund
 
Variable Portfolio - Loomis Sayles Growth Fund
In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the individual Sub-Accounts above as of December 31, 2017, the results of their operations for the periods then ended, the changes in their net assets for each of the periods presented in the two years then ended, and the financial highlights in Note 6 for each of the periods presented in the five years then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion
These financial statements and financial highlights are the responsibility of the Account's management. Our responsibility is to express an opinion on these financial statements and financial highlights 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 Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The 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 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 and financial highlights, 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 and financial highlights. 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 and financial highlights. Our procedures included confirmation of investments owned as of December 31, 2017, by correspondence with the fund managers; when replies were not received from fund managers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

/s/ DELOITTE & TOUCHE LLP
Hartford, CT
April 19, 2018
We have served as the auditor of the sub-accounts that comprise Hartford Life Insurance Company Separate Account Seven since 2002.



















SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Assets and Liabilities
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
American Century VP Value Fund
American Century VP Growth Fund
AB VPS Balanced Wealth Strategy Portfolio
AB VPS International Value Portfolio
AB VPS Small/Mid Cap Value Portfolio
AB VPS Value Portfolio
AB VPS International Growth Portfolio
Invesco V.I. Value Opportunities Fund
Invesco V.I. Core Equity Fund
Invesco V.I. Government Securities Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
  Investments, at market value
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
—

—

—

—

—

—

—

—

—

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

4,424,885

4,943,870

1,891,390

238,338

611,154

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
1,841,868

97,907

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

15,999,969

29,799,750

87,071,460

class S2
—

—

—

—

—

—

—

—

998,957

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

                   Total investments
1,841,868

97,907

4,424,885

4,943,870

1,891,390

238,338

611,154

15,999,969

30,798,707

87,071,460

  Due from Sponsor Company
—

—

—

—

—

—

—

—

—

—

  Receivable for fund shares sold
147

5

936

1,017

332

29

89

4,741

20,605

33,061

  Other assets
—

—

1

1

—

—

—

1

—

8

 Total assets
1,842,015

97,912

4,425,822

4,944,888

1,891,722

238,367

611,243

16,004,711

30,819,312

87,104,529

 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
  Due to Sponsor Company
147

5

936

1,017

332

29

89

4,741

20,605

33,061

  Payable for fund shares purchased
—

—

—

—

—

—

—

—

—

—

  Other liabilities
—

—

—

—

1

2

—

—

—

—

 Total liabilities
147

5

936

1,017

333

31

89

4,741

20,605

33,061

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  For contract liabilities
$
1,841,868

$
97,907

$
4,424,886

$
4,943,871

$
1,891,389

$
238,336

$
611,154

$
15,999,970

$
30,798,707

$
87,071,468

 
 
 
 
 
 
 
 
 
 
 
Contract Liabilities:
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
—

—

—

—

—

—

—

—

—

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

4,424,886

4,943,871

1,891,389

238,336

611,154

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
1,841,868

97,907

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

15,999,970

29,799,751

87,071,468

class S2
—

—

—

—

—

—

—

—

998,956

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total contract liabilities
$
1,841,868

$
97,907

$
4,424,886

$
4,943,871

$
1,891,389

$
238,336

$
611,154

$
15,999,970

$
30,798,707

$
87,071,468

 
 
 
 
 
 
 
 
 
 
 
Shares:
 
 
 
 
 
 
 
 
 
 
class 1
—

—

—

—

—

—

—

—

—

—

class 2
—

—

—

—

—

—

—

—

—

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

377,228

306,122

88,054

13,857

26,805

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
164,159

6,593

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

2,110,814

811,540

7,631,153

class S2
—

—

—

—

—

—

—

—

27,611

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total shares
164,159

6,593

377,228

306,122

88,054

13,857

26,805

2,110,814

839,151

7,631,153

 
 
 
 
 
 
 
 
 
 
 
Cost
$
1,228,111

$
81,415

$
4,251,711

$
4,073,096

$
1,618,328

$
170,735

$
453,762

$
16,664,391

$
25,339,954

$
91,520,062

 
 
 
 
 
 
 
 
 
 
 
Deferred contracts in the accumulation period:
 
 
 
 
 
 
 
 
 
 
  Units owned by participants #
90,449

4,847

282,012

569,616

79,290

14,014

59,347

8,247,865

1,808,084

65,202,178

  Minimum unit fair value #*
$
19.222298

$
20.200979

$
13.371184

$
7.642684

$
20.708518

$
13.516541

$
8.940547

$
1.703629

$
1.341748

$
1.166100

  Maximum unit fair value #*
$
21.485379

$
20.200979

$
21.039797

$
16.752424

$
34.565515

$
15.208808

$
17.933019

$
26.109960

$
23.263545

$
9.959231

  Contract liability
$
1,841,868

$
97,907

$
4,424,886

$
4,895,332

$
1,891,389

$
209,294

$
611,154

$
15,695,713

$
30,371,363

$
86,013,074

 
 
 
 
 
 
 
 
 
 
 
Contracts in payout (annuitization) period:
 
 
 
 
 
 
 
 
 
 
Units owned by participants #
—

—

—

5,842

—

1,986

—

151,026

32,219

768,683

Minimum unit fair value #*
$
—

$
—

$
—

$
8.308908

$
—

$
14.622376

$
—

$
1.943893

$
1.501325

$
1.330632

Maximum unit fair value #*
$
—

$
—

$
—

$
8.308908

$
—

$
14.622376

$
—

$
2.059518

$
20.308036

$
1.409789

Contract liability
$
—

$
—

$
—

$
48,539

$
—

$
29,042

$
—

$
304,257

$
427,344

$
1,058,394

 
 
 
 
 
 
 
 
 
 
 
# Rounded units/unit fair values
 
 
 
 
 
 
 
 
 
 
* For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 
.












SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Assets and Liabilities (continued)
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Invesco V.I. High Yield Fund
Invesco V.I. International Growth Fund
Invesco V.I. Mid Cap Core Equity Fund
Invesco V.I. Small Cap Equity Fund
Invesco V.I. Balanced Risk Allocation Fund
Invesco V.I. Diversified Dividend Fund
Invesco V.I. Government Money Market Fund
American Century VP Mid Cap Value Fund
American Funds Global Bond Fund
American Funds Global Growth and Income Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
  Investments, at market value
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
—

—

—

—

—

—

—

—

23,718,958

43,502,836

class 4
—

—

—

—

—

—

—

—

2,114,158

7,836,594

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

151,362

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
508,940

24,993,057

32,079,550

19,176,414

—

—

48,354,413

—

—

—

class S2
—

9,448,053

69,466

3,356,563

1,531,699

7,564

734,858

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

                   Total investments
508,940

34,441,110

32,149,016

22,532,977

1,531,699

7,564

49,089,271

151,362

25,833,116

51,339,430

  Due from Sponsor Company
—

—

—

—

—

—

—

—

—

—

  Receivable for fund shares sold
96

6,569

8,350

6,363

890

1

60,998

8

7,838

8,783

  Other assets
—

—

—

3

1

—

13

—

—

1

 Total assets
509,036

34,447,679

32,157,366

22,539,343

1,532,590

7,565

49,150,282

151,370

25,840,954

51,348,214

 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
  Due to Sponsor Company
96

6,569

8,350

6,363

890

1

60,998

8

7,838

8,783

  Payable for fund shares purchased
—

—

—

—

—

—

—

—

—

—

  Other liabilities
3

1

3

—

—

—

—

—

—

—

 Total liabilities
99

6,570

8,353

6,363

890

1

60,998

8

7,838

8,783

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  For contract liabilities
$
508,937

$
34,441,109

$
32,149,013

$
22,532,980

$
1,531,700

$
7,564

$
49,089,284

$
151,362

$
25,833,116

$
51,339,431

 
 
 
 
 
 
 
 
 
 
 
Contract Liabilities:
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
—

—

—

—

—

—

—

—

23,718,957

43,502,836

class 4
—

—

—

—

—

—

—

—

2,114,159

7,836,595

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

151,362

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
508,937

24,993,054

32,079,547

19,176,418

—

—

48,354,425

—

—

—

class S2
—

9,448,055

69,466

3,356,562

1,531,700

7,564

734,859

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total contract liabilities
$
508,937

$
34,441,109

$
32,149,013

$
22,532,980

$
1,531,700

$
7,564

$
49,089,284

$
151,362

$
25,833,116

$
51,339,431

 
 
 
 
 
 
 
 
 
 
 
Shares:
 
 
 
 
 
 
 
 
 
 
class 1
—

—

—

—

—

—

—

—

—

—

class 2
—

—

—

—

—

—

—

—

2,011,786

2,756,834

class 4
—

—

—

—

—

—

—

—

180,697

502,346

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

6,650

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
92,367

626,550

2,226,201

957,862

—

—

48,354,413

—

—

—

class S2
—

240,225

4,923

176,198

137,126

280

734,858

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total shares
92,367

866,775

2,231,124

1,134,060

137,126

280

49,089,271

6,650

2,192,483

3,259,180

 
 
 
 
 
 
 
 
 
 
 
Cost
$
509,406

$
24,980,785

$
28,244,297

$
20,062,829

$
1,580,352

$
4,516

$
49,089,271

$
114,851

$
25,132,885

$
39,901,862

 
 
 
 
 
 
 
 
 
 
 
Deferred contracts in the accumulation period:
 
 
 
 
 
 
 
 
 
 
  Units owned by participants #
125,926

9,658,427

11,813,171

930,038

109,910

394

5,229,233

6,844

2,072,149

3,115,932

  Minimum unit fair value #*
$
1.857650

$
2.407670

$
2.412074

$
17.547774

$
13.062314

$
19.204376

$
8.876326

$
20.941448

$
9.904477

$
10.570853

  Maximum unit fair value #*
$
21.668157

$
20.221611

$
22.473592

$
28.633155

$
14.861220

$
19.204376

$
9.841936

$
22.362747

$
14.019818

$
25.216737

  Contract liability
$
506,190

$
34,341,083

$
31,851,469

$
22,443,301

$
1,531,700

$
7,564

$
48,704,361

$
151,362

$
25,479,895

$
50,803,206

 
 
 
 
 
 
 
 
 
 
 
Contracts in payout (annuitization) period:
 
 
 
 
 
 
 
 
 
 
Units owned by participants #
1,303

35,028

104,516

3,416

—

—

40,688

—

27,190

30,929

Minimum unit fair value #*
$
2.107655

$
2.747192

$
2.752234

$
25.550876

$
—

$
—

$
9.314545

$
—

$
9.966052

$
10.618380

Maximum unit fair value #*
$
2.107655

$
2.910603

$
2.915945

$
26.853289

$
—

$
—

$
9.465397

$
—

$
13.253622

$
18.839462

Contract liability
$
2,747

$
100,026

$
297,544

$
89,679

$
—

$
—

$
384,923

$
—

$
353,221

$
536,225

 
 
 
 
 
 
 
 
 
 
 
# Rounded units/unit fair values
 
 
 
 
 
 
 
 
 
 
* For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 
.












SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Assets and Liabilities (continued)
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
American Funds Asset Allocation Fund
American Funds Blue Chip Income and Growth Fund
American Funds Bond Fund
American Funds Global Growth Fund
American Funds Growth Fund
American Funds Growth-Income Fund
American Funds International Fund
American Funds New World Fund
American Funds Global Small Capitalization Fund
Columbia Variable Portfolio - Small Company Growth Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
  Investments, at market value
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
4,816,534

class 2
150,146,603

83,759,192

115,167,981

49,704,597

402,452,774

345,899,767

83,252,028

32,274,714

33,004,204

—

class 4
9,044,278

5,272,202

21,401,476

3,021,371

45,412,530

26,103,424

27,592,342

4,205,025

6,661,764

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

                   Total investments
159,190,881

89,031,394

136,569,457

52,725,968

447,865,304

372,003,191

110,844,370

36,479,739

39,665,968

4,816,534

  Due from Sponsor Company
—

—

—

—

—

—

—

—

—

—

  Receivable for fund shares sold
43,440

20,290

42,557

8,801

206,831

163,677

54,075

23,052

10,883

12,315

  Other assets
—

—

5

2

4

1

—

3

—

—

 Total assets
159,234,321

89,051,684

136,612,019

52,734,771

448,072,139

372,166,869

110,898,445

36,502,794

39,676,851

4,828,849

 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
  Due to Sponsor Company
43,440

20,290

42,557

8,801

206,831

163,677

54,075

23,052

10,883

12,315

  Payable for fund shares purchased
—

—

—

—

—

—

—

—

—

—

  Other liabilities
5

7

—

—

—

—

—

—

3

1

 Total liabilities
43,445

20,297

42,557

8,801

206,831

163,677

54,075

23,052

10,886

12,316

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  For contract liabilities
$
159,190,876

$
89,031,387

$
136,569,462

$
52,725,970

$
447,865,308

$
372,003,192

$
110,844,370

$
36,479,742

$
39,665,965

$
4,816,533

 
 
 
 
 
 
 
 
 
 
 
Contract Liabilities:
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
4,816,533

class 2
150,146,598

83,759,185

115,167,984

49,704,600

402,452,776

345,899,768

83,252,028

32,274,716

33,004,201

—

class 4
9,044,278

5,272,202

21,401,478

3,021,370

45,412,532

26,103,424

27,592,342

4,205,026

6,661,764

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total contract liabilities
$
159,190,876

$
89,031,387

$
136,569,462

$
52,725,970

$
447,865,308

$
372,003,192

$
110,844,370

$
36,479,742

$
39,665,965

$
4,816,533

 
 
 
 
 
 
 
 
 
 
 
Shares:
 
 
 
 
 
 
 
 
 
 
class 1
—

—

—

—

—

—

—

—

—

257,431

class 2
6,391,937

5,659,405

10,773,431

1,643,670

5,203,009

6,958,354

3,848,915

1,287,384

1,335,122

—

class 4
386,508

356,953

2,003,884

100,278

593,163

529,374

1,288,158

168,268

267,433

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total shares
6,778,445

6,016,358

12,777,315

1,743,948

5,796,172

7,487,728

5,137,073

1,455,652

1,602,555

257,431

 
 
 
 
 
 
 
 
 
 
 
Cost
$
120,831,449

$
69,265,730

$
138,931,688

$
39,656,880

$
357,805,504

$
298,758,850

$
95,587,227

$
28,497,610

$
32,507,041

$
3,696,134

 
 
 
 
 
 
 
 
 
 
 
Deferred contracts in the accumulation period:
 
 
 
 
 
 
 
 
 
 
  Units owned by participants #
7,382,818

39,247,911

9,402,578

2,123,924

20,241,762

15,615,330

6,848,927

1,406,308

1,842,940

1,528,134

  Minimum unit fair value #*
$
10.371941

$
1.891730

$
9.935904

$
10.590156

$
10.614809

$
10.721953

$
10.611129

$
10.768239

$
10.790498

$
2.061874

  Maximum unit fair value #*
$
27.951597

$
27.515855

$
18.240164

$
34.080432

$
34.381516

$
32.619326

$
24.051776

$
39.540783

$
33.123821

$
29.216137

  Contract liability
$
156,576,606

$
87,691,733

$
135,017,977

$
52,416,164

$
443,982,842

$
367,774,635

$
110,093,246

$
36,247,841

$
39,474,724

$
4,763,716

 
 
 
 
 
 
 
 
 
 
 
Contracts in payout (annuitization) period:
 
 
 
 
 
 
 
 
 
 
Units owned by participants #
107,813

573,670

96,642

11,079

144,068

163,263

36,157

7,671

7,175

22,576

Minimum unit fair value #*
$
10.418576

$
2.160159

$
9.980590

$
10.637763

$
10.664821

$
10.770160

$
10.658822

$
10.816629

$
10.838991

$
2.339489

Maximum unit fair value #*
$
27.951597

$
10.861983

$
18.240164

$
34.080432

$
34.381516

$
32.619326

$
23.568227

$
37.082556

$
33.123821

$
2.339489

Contract liability
$
2,614,270

$
1,339,654

$
1,551,485

$
309,806

$
3,882,466

$
4,228,557

$
751,124

$
231,901

$
191,241

$
52,817

 
 
 
 
 
 
 
 
 
 
 
# Rounded units/unit fair values
 
 
 
 
 
 
 
 
 
 
* For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 













SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Assets and Liabilities (continued)
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wells Fargo VT Omega Growth Fund
Fidelity® VIP Growth Portfolio
Fidelity® VIP Contrafund® Portfolio
Fidelity® VIP Mid Cap Portfolio
Fidelity® VIP Value Strategies Portfolio
Fidelity® VIP Dynamic Capital Appreciation Portfolio
Fidelity® VIP Strategic Income Portfolio
Franklin Rising Dividends VIP Fund
Franklin Income VIP Fund
Franklin Large Cap Growth VIP Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
  Investments, at market value
 
 
 
 
 
 
 
 
 
 
class 1
$
584,474

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
8,119

—

—

—

—

—

—

162,951,134

300,112,015

23,627,679

class 4
—

—

—

—

—

—

—

1,203,994

33,231,301

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

1,814,727

14,891,379

12,575,581

656,856

274,613

118,687

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

                   Total investments
592,593

1,814,727

14,891,379

12,575,581

656,856

274,613

118,687

164,155,128

333,343,316

23,627,679

  Due from Sponsor Company
—

—

—

—

—

—

—

—

—

—

  Receivable for fund shares sold
1,466

1,139

1,943

2,866

110

42

6

56,476

125,323

21,286

  Other assets
—

—

—

—

—

—

—

—

—

2

 Total assets
594,059

1,815,866

14,893,322

12,578,447

656,966

274,655

118,693

164,211,604

333,468,639

23,648,967

 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
  Due to Sponsor Company
1,466

1,139

1,943

2,866

110

42

6

56,476

125,323

21,286

  Payable for fund shares purchased
—

—

—

—

—

—

—

—

—

—

  Other liabilities
—

3

3

3

—

—

—

3

—

—

 Total liabilities
1,466

1,142

1,946

2,869

110

42

6

56,479

125,323

21,286

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  For contract liabilities
$
592,593

$
1,814,724

$
14,891,376

$
12,575,578

$
656,856

$
274,613

$
118,687

$
164,155,125

$
333,343,316

$
23,627,681

 
 
 
 
 
 
 
 
 
 
 
Contract Liabilities:
 
 
 
 
 
 
 
 
 
 
class 1
$
584,474

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
8,119

—

—

—

—

—

—

162,951,131

300,112,015

23,627,681

class 4
—

—

—

—

—

—

—

1,203,994

33,231,301

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

1,814,724

14,891,376

12,575,578

656,856

274,613

118,687

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total contract liabilities
$
592,593

$
1,814,724

$
14,891,376

$
12,575,578

$
656,856

$
274,613

$
118,687

$
164,155,125

$
333,343,316

$
23,627,681

 
 
 
 
 
 
 
 
 
 
 
Shares:
 
 
 
 
 
 
 
 
 
 
class 1
20,161

—

—

—

—

—

—

—

—

—

class 2
291

—

—

—

—

—

—

5,725,620

18,559,803

1,153,695

class 4
—

—

—

—

—

—

—

42,186

2,010,363

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

24,907

401,927

332,775

45,678

19,545

10,411

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total shares
20,452

24,907

401,927

332,775

45,678

19,545

10,411

5,767,806

20,570,166

1,153,695

 
 
 
 
 
 
 
 
 
 
 
Cost
$
531,279

$
1,393,353

$
10,376,089

$
9,421,234

$
501,087

$
228,262

$
119,859

$
122,014,577

$
309,536,852

$
19,945,970

 
 
 
 
 
 
 
 
 
 
 
Deferred contracts in the accumulation period:
 
 
 
 
 
 
 
 
 
 
  Units owned by participants #
280,899

84,524

722,430

618,965

31,607

12,456

7,473

5,666,957

15,141,455

1,135,908

  Minimum unit fair value #*
$
1.613701

$
19.013623

$
17.363977

$
17.940779

$
17.539924

$
19.546704

$
15.814675

$
21.443181

$
13.876655

$
18.515448

  Maximum unit fair value #*
$
32.997419

$
33.085123

$
30.342536

$
29.945223

$
34.694125

$
32.020489

$
16.017684

$
32.540421

$
25.863286

$
24.739236

  Contract liability
$
592,593

$
1,774,170

$
14,837,068

$
12,568,238

$
656,856

$
270,128

$
118,687

$
162,100,050

$
327,812,819

$
23,423,003

 
 
 
 
 
 
 
 
 
 
 
Contracts in payout (annuitization) period:
 
 
 
 
 
 
 
 
 
 
Units owned by participants #
—

2,031

2,856

367

—

218

—

68,914

234,500

9,480

Minimum unit fair value #*
$
—

$
19.972178

$
18.785750

$
19.409761

$
—

$
20.532130

$
—

$
28.778050

$
15.086659

$
21.082381

Maximum unit fair value #*
$
—

$
19.972178

$
19.539621

$
20.188732

$
—

$
20.532130

$
—

$
30.517325

$
24.255422

$
22.282173

Contract liability
$
—

$
40,554

$
54,308

$
7,340

$
—

$
4,485

$
—

$
2,055,075

$
5,530,497

$
204,678

 
 
 
 
 
 
 
 
 
 
 
# Rounded units/unit fair values
 
 
 
 
 
 
 
 
 
 
* For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 










SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Assets and Liabilities (continued)
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Franklin Global Real Estate VIP Fund
Franklin Small-Mid Cap Growth VIP Fund
Franklin Small Cap Value VIP Fund
Franklin Strategic Income VIP Fund
Franklin Mutual Shares VIP Fund
Templeton Developing Markets VIP Fund
Templeton Foreign VIP Fund
Templeton Growth VIP Fund
Franklin Mutual Global Discovery VIP Fund
Franklin Flex Cap Growth VIP Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
  Investments, at market value
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
81,778,315

$
—

$
16,265,394

$
—

$
—

$
—

$
—

class 2
811,967

45,907,109

8,760,244

415,124

167,145,814

—

58,510,131

99,605,740

52,611,592

9,698,838

class 4
—

1,813,766

3,407,321

18,562,762

21,888,439

2,062,514

4,638,474

10,035,593

5,097,592

1,271,436

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

                   Total investments
811,967

47,720,875

12,167,565

100,756,201

189,034,253

18,327,908

63,148,605

109,641,333

57,709,184

10,970,274

  Due from Sponsor Company
—

—

—

—

—

—

—

—

—

—

  Receivable for fund shares sold
103

19,748

2,325

36,276

116,793

11,352

41,016

60,334

17,241

18,301

  Other assets
—

6

—

—

2

2

1

—

1

—

 Total assets
812,070

47,740,629

12,169,890

100,792,477

189,151,048

18,339,262

63,189,622

109,701,667

57,726,426

10,988,575

 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
  Due to Sponsor Company
103

19,748

2,325

36,276

116,793

11,352

41,016

60,334

17,241

18,301

  Payable for fund shares purchased
—

—

—

—

—

—

—

—

—

—

  Other liabilities
2

—

1

1

—

—

—

5

—

—

 Total liabilities
105

19,748

2,326

36,277

116,793

11,352

41,016

60,339

17,241

18,301

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  For contract liabilities
$
811,965

$
47,720,881

$
12,167,564

$
100,756,200

$
189,034,255

$
18,327,910

$
63,148,606

$
109,641,328

$
57,709,185

$
10,970,274

 
 
 
 
 
 
 
 
 
 
 
Contract Liabilities:
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
81,778,313

$
—

$
16,265,395

$
—

$
—

$
—

$
—

class 2
811,965

45,907,115

8,760,244

415,125

167,145,817

—

58,510,132

99,605,736

52,611,592

9,698,838

class 4
—

1,813,766

3,407,320

18,562,762

21,888,438

2,062,515

4,638,474

10,035,592

5,097,593

1,271,436

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total contract liabilities
$
811,965

$
47,720,881

$
12,167,564

$
100,756,200

$
189,034,255

$
18,327,910

$
63,148,606

$
109,641,328

$
57,709,185

$
10,970,274

 
 
 
 
 
 
 
 
 
 
 
Shares:
 
 
 
 
 
 
 
 
 
 
class 1
—

—

—

7,314,697

—

1,577,633

—

—

—

—

class 2
49,151

2,574,711

442,437

38,437

8,209,520

—

3,782,168

6,237,054

2,657,152

1,300,113

class 4
—

98,201

168,512

1,675,340

1,066,168

200,634

295,256

622,169

252,731

176,343

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total shares
49,151

2,672,912

610,949

9,028,474

9,275,688

1,778,267

4,077,424

6,859,223

2,909,883

1,476,456

 
 
 
 
 
 
 
 
 
 
 
Cost
$
770,939

$
51,917,575

$
11,076,767

$
107,344,601

$
158,759,189

$
16,204,480

$
57,752,392

$
84,689,182

$
56,677,770

$
12,800,436

 
 
 
 
 
 
 
 
 
 
 
Deferred contracts in the accumulation period:
 
 
 
 
 
 
 
 
 
 
  Units owned by participants #
32,227

2,529,487

643,915

5,063,783

8,238,710

817,028

4,175,377

5,950,497

2,005,499

557,364

  Minimum unit fair value #*
$
19.596544

$
12.588723

$
16.510274

$
11.942073

$
13.694595

$
9.296015

$
10.134400

$
12.246020

$
14.263263

$
17.726448

  Maximum unit fair value #*
$
25.300343

$
29.331498

$
32.012289

$
26.225411

$
30.462534

$
31.879178

$
18.486970

$
22.775861

$
35.614304

$
26.522361

  Contract liability
$
792,772

$
47,258,936

$
12,149,892

$
99,322,753

$
186,674,521

$
18,272,184

$
62,504,844

$
108,325,074

$
57,081,175

$
10,947,746

 
 
 
 
 
 
 
 
 
 
 
Contracts in payout (annuitization) period:
 
 
 
 
 
 
 
 
 
 
Units owned by participants #
795

23,014

916

61,881

87,905

2,452

38,847

63,445

20,753

1,137

Minimum unit fair value #*
$
24.156631

$
14.468799

$
18.018295

$
13.701587

$
14.888992

$
10.057259

$
14.982619

$
18.568318

$
15.507121

$
18.620097

Maximum unit fair value #*
$
24.156631

$
26.267693

$
21.435996

$
24.489527

$
28.445755

$
29.768619

$
17.262802

$
21.267845

$
33.400050

$
20.914372

Contract liability
$
19,193

$
461,945

$
17,672

$
1,433,447

$
2,359,734

$
55,726

$
643,762

$
1,316,254

$
628,010

$
22,528

 
 
 
 
 
 
 
 
 
 
 
# Rounded units/unit fair values
 
 
 
 
 
 
 
 
 
 
* For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 
 













SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Assets and Liabilities (continued)
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Templeton Global Bond VIP Fund
Hartford Balanced HLS Fund
Hartford Total Return Bond HLS Fund
Hartford Capital Appreciation HLS Fund
Hartford Dividend and Growth HLS Fund
Hartford Healthcare HLS Fund
Hartford Global Growth HLS Fund
Hartford Disciplined Equity HLS Fund
Hartford Growth Opportunities HLS Fund
Hartford High Yield HLS Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
  Investments, at market value
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
326,416

—

—

—

—

—

—

—

—

—

class 4
11,405,137

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

4,920,083

85,385,734

86,855,981

63,624,890

—

297,199

11,745,592

22,866,707

6,084,302

class IB
—

8,166,677

19,925,032

19,996,697

14,949,888

80,423

701,728

227,474

1,110,697

482,525

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

                   Total investments
11,731,553

13,086,760

105,310,766

106,852,678

78,574,778

80,423

998,927

11,973,066

23,977,404

6,566,827

  Due from Sponsor Company
—

—

—

—

—

—

—

—

—

—

  Receivable for fund shares sold
414

4,274

117,492

96,241

16,131

9

137

2,154

5,704

1,312

  Other assets
—

3

6

—

—

—

—

2

—

—

 Total assets
11,731,967

13,091,037

105,428,264

106,948,919

78,590,909

80,432

999,064

11,975,222

23,983,108

6,568,139

 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
  Due to Sponsor Company
414

4,274

117,492

96,241

16,131

9

137

2,154

5,704

1,312

  Payable for fund shares purchased
—

—

—

—

—

—

—

—

—

—

  Other liabilities
3

—

—

—

2

—

2

—

3

1

 Total liabilities
417

4,274

117,492

96,241

16,133

9

139

2,154

5,707

1,313

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  For contract liabilities
$
11,731,550

$
13,086,763

$
105,310,772

$
106,852,678

$
78,574,776

$
80,423

$
998,925

$
11,973,068

$
23,977,401

$
6,566,826

 
 
 
 
 
 
 
 
 
 
 
Contract Liabilities:
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
326,416

—

—

—

—

—

—

—

—

—

class 4
11,405,134

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

4,920,083

85,385,736

86,855,984

63,624,889

—

297,200

11,745,593

22,866,704

6,084,302

class IB
—

8,166,680

19,925,036

19,996,694

14,949,887

80,423

701,725

227,475

1,110,697

482,524

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total contract liabilities
$
11,731,550

$
13,086,763

$
105,310,772

$
106,852,678

$
78,574,776

$
80,423

$
998,925

$
11,973,068

$
23,977,401

$
6,566,826

 
 
 
 
 
 
 
 
 
 
 
Shares:
 
 
 
 
 
 
 
 
 
 
class 1
—

—

—

—

—

—

—

—

—

—

class 2
19,771

—

—

—

—

—

—

—

—

—

class 4
676,060

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

158,610

7,542,909

1,803,488

2,656,571

—

10,656

761,218

595,177

741,988

class IB
—

259,424

1,771,114

421,160

626,830

3,767

25,397

14,897

30,092

59,867

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total shares
695,831

418,034

9,314,023

2,224,648

3,283,401

3,767

36,053

776,115

625,269

801,855

 
 
 
 
 
 
 
 
 
 
 
Cost
$
12,373,200

$
9,928,475

$
103,518,594

$
92,044,338

$
66,601,056

$
68,724

$
779,227

$
10,664,282

$
18,098,002

$
6,717,189

 
 
 
 
 
 
 
 
 
 
 
Deferred contracts in the accumulation period:
 
 
 
 
 
 
 
 
 
 
  Units owned by participants #
852,561

3,778,985

16,643,708

10,124,290

7,097,098

13,766

164,026

592,989

1,149,641

392,277

  Minimum unit fair value #*
$
10.684534

$
1.533162

$
1.403226

$
2.294857

$
2.264855

$
5.842235

$
1.477628

$
2.838367

$
3.312146

$
2.384773

  Maximum unit fair value #*
$
14.847828

$
22.937937

$
14.533811

$
31.279734

$
30.360968

$
5.842235

$
30.730518

$
33.884927

$
36.470168

$
22.685083

  Contract liability
$
11,713,624

$
12,942,837

$
104,995,063

$
106,520,018

$
78,225,635

$
80,423

$
933,886

$
11,818,685

$
23,952,795

$
6,559,851

 
 
 
 
 
 
 
 
 
 
 
Contracts in payout (annuitization) period:
 
 
 
 
 
 
 
 
 
 
Units owned by participants #
1,276

72,668

174,077

97,428

111,190

—

13,863

7,766

1,149

380

Minimum unit fair value #*
$
13.594138

$
1.739634

$
1.592116

$
2.603883

$
2.569841

$
—

$
3.574467

$
2.916274

$
21.418408

$
18.368377

Maximum unit fair value #*
$
14.139620

$
2.125606

$
13.097622

$
18.048084

$
20.013822

$
—

$
16.876934

$
21.770343

$
21.418408

$
18.368377

Contract liability
$
17,926

$
143,926

$
315,709

$
332,660

$
349,141

$
—

$
65,039

$
154,383

$
24,606

$
6,975

 
 
 
 
 
 
 
 
 
 
 
# Rounded units/unit fair values
 
 
 
 
 
 
 
 
 
 
* For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 













SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Assets and Liabilities (continued)
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hartford International Opportunities HLS Fund
Hartford Small/Mid Cap Equity HLS Fund
Hartford MidCap HLS Fund
Hartford MidCap Value HLS Fund
Hartford Ultrashort Bond HLS Fund
Hartford Small Company HLS Fund
Hartford SmallCap Growth HLS Fund
Hartford Stock HLS Fund
Hartford U.S. Government Securities HLS Fund
Hartford Value HLS Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
  Investments, at market value
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
—

—

—

—

—

—

—

—

—

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
4,306,239

1,000,286

—

—

45,719,088

1,064,689

1,467,025

774,577

3,164,980

955,634

class IB
3,071,124

262,524

810,909

346,888

3,352,311

1,703,913

70,840

6,209,473

1,372,832

308,481

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

                   Total investments
7,377,363

1,262,810

810,909

346,888

49,071,399

2,768,602

1,537,865

6,984,050

4,537,812

1,264,115

  Due from Sponsor Company
—

—

—

—

—

—

—

—

—

—

  Receivable for fund shares sold
56,201

824

172

10,513

8,486

835

385

3,595

617

152

  Other assets
1

1

—

—

11

4

—

—

—

—

 Total assets
7,433,565

1,263,635

811,081

357,401

49,079,896

2,769,441

1,538,250

6,987,645

4,538,429

1,264,267

 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
  Due to Sponsor Company
56,201

824

172

10,513

8,486

835

385

3,595

617

152

  Payable for fund shares purchased
—

—

—

—

—

—

—

—

—

—

  Other liabilities
—

—

—

1

—

—

1

1

1

1

 Total liabilities
56,201

824

172

10,514

8,486

835

386

3,596

618

153

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  For contract liabilities
$
7,377,364

$
1,262,811

$
810,909

$
346,887

$
49,071,410

$
2,768,606

$
1,537,864

$
6,984,049

$
4,537,811

$
1,264,114

 
 
 
 
 
 
 
 
 
 
 
Contract Liabilities:
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
—

—

—

—

—

—

—

—

—

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
4,306,238

1,000,286

—

—

45,719,098

1,064,690

1,467,024

774,575

3,164,980

955,633

class IB
3,071,126

262,525

810,909

346,887

3,352,312

1,703,916

70,840

6,209,474

1,372,831

308,481

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total contract liabilities
$
7,377,364

$
1,262,811

$
810,909

$
346,887

$
49,071,410

$
2,768,606

$
1,537,864

$
6,984,049

$
4,537,811

$
1,264,114

 
 
 
 
 
 
 
 
 
 
 
Shares:
 
 
 
 
 
 
 
 
 
 
class 1
—

—

—

—

—

—

—

—

—

—

class 2
—

—

—

—

—

—

—

—

—

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
246,635

113,540

—

—

4,544,641

52,140

45,659

9,735

309,989

59,541

class IB
173,706

30,003

20,697

27,751

333,563

89,821

2,265

78,067

134,591

19,256

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total shares
420,341

143,543

20,697

27,751

4,878,204

141,961

47,924

87,802

444,580

78,797

 
 
 
 
 
 
 
 
 
 
 
Cost
$
5,440,884

$
1,180,886

$
559,746

$
342,680

$
48,843,152

$
2,566,012

$
1,291,197

$
4,457,308

$
4,680,930

$
973,407

 
 
 
 
 
 
 
 
 
 
 
Deferred contracts in the accumulation period:
 
 
 
 
 
 
 
 
 
 
  Units owned by participants #
1,068,838

60,900

81,173

26,009

44,342,027

605,827

75,199

2,901,713

563,800

104,653

  Minimum unit fair value #*
$
1.796806

$
18.422215

$
9.696947

$
2.885820

$
0.801786

$
2.279534

$
3.262709

$
1.562072

$
1.113616

$
2.383101

  Maximum unit fair value #*
$
21.188012

$
32.830489

$
9.696947

$
33.580303

$
9.800911

$
29.886392

$
39.206842

$
30.064906

$
11.737333

$
28.535135

  Contract liability
$
7,268,174

$
1,262,811

$
787,128

$
346,887

$
48,318,684

$
2,747,177

$
1,537,864

$
6,849,522

$
4,537,811

$
1,262,257

 
 
 
 
 
 
 
 
 
 
 
Contracts in payout (annuitization) period:
 
 
 
 
 
 
 
 
 
 
Units owned by participants #
30,890

—

2,452

—

730,080

6,303

—

68,038

—

100

Minimum unit fair value #*
$
2.038848

$
—

$
9.696947

$
—

$
0.909625

$
2.586503

$
—

$
1.772511

$
—

$
18.645711

Maximum unit fair value #*
$
12.808856

$
—

$
9.696947

$
—

$
1.066531

$
18.787244

$
—

$
2.204388

$
—

$
18.645711

Contract liability
$
109,190

$
—

$
23,781

$
—

$
752,726

$
21,429

$
—

$
134,527

$
—

$
1,857

 
 
 
 
 
 
 
 
 
 
 
# Rounded units/unit fair values
 
 
 
 
 
 
 
 
 
 
* For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 











SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Assets and Liabilities (continued)
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rational Dividend Capture VA Fund
Rational Insider Buying VA Fund
Lord Abbett Fundamental Equity Fund
Lord Abbett Calibrated Dividend Growth Fund
Lord Abbett Bond Debenture Fund
Lord Abbett Growth and Income Fund
MFS® Growth Fund
MFS® Global Equity Fund
MFS® Investors Trust Fund
MFS® Mid Cap Growth Fund
 
Sub-Account (1)
Sub-Account (2)
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
  Investments, at market value
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
—

—

—

—

—

—

—

—

—

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

26,779,121

5,247,442

49,543,890

15,121,770

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

1,595,929

—

197,739

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

1,385,575

3,061,892

9,682,291

1,576,088

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
3,403,370

3,494,539

—

—

—

—

—

—

—

—

                   Total investments
3,403,370

3,494,539

1,385,575

3,061,892

9,682,291

1,576,088

28,375,050

5,247,442

49,741,629

15,121,770

  Due from Sponsor Company
—

—

—

—

—

—

—

—

—

—

  Receivable for fund shares sold
420

526

82

401

1,754

208

6,715

852

30,913

2,469

  Other assets
—

—

—

2

—

—

—

2

1

—

 Total assets
3,403,790

3,495,065

1,385,657

3,062,295

9,684,045

1,576,296

28,381,765

5,248,296

49,772,543

15,124,239

 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
  Due to Sponsor Company
420

526

82

401

1,754

208

6,715

852

30,913

2,469

  Payable for fund shares purchased
—

—

—

—

—

—

—

—

—

—

  Other liabilities
1

1

—

—

—

1

4

—

—

1

 Total liabilities
421

527

82

401

1,754

209

6,719

852

30,913

2,470

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  For contract liabilities
$
3,403,369

$
3,494,538

$
1,385,575

$
3,061,894

$
9,682,291

$
1,576,087

$
28,375,046

$
5,247,444

$
49,741,630

$
15,121,769

 
 
 
 
 
 
 
 
 
 
 
Contract Liabilities:
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
—

—

—

—

—

—

—

—

—

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

26,779,118

5,247,444

49,543,892

15,121,769

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

1,595,928

—

197,738

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

1,385,575

3,061,894

9,682,291

1,576,087

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
3,403,369

3,494,538

—

—

—

—

—

—

—

—

  Total contract liabilities
$
3,403,369

$
3,494,538

$
1,385,575

$
3,061,894

$
9,682,291

$
1,576,087

$
28,375,046

$
5,247,444

$
49,741,630

$
15,121,769

 
 
 
 
 
 
 
 
 
 
 
Shares:
 
 
 
 
 
 
 
 
 
 
class 1
—

—

—

—

—

—

—

—

—

—

class 2
—

—

—

—

—

—

—

—

—

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

547,630

238,520

1,647,619

1,590,091

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

33,762

—

6,660

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

73,466

191,129

782,091

42,425

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
288,911

253,964

—

—

—

—

—

—

—

—

  Total shares
288,911

253,964

73,466

191,129

782,091

42,425

581,392

238,520

1,654,279

1,590,091

 
 
 
 
 
 
 
 
 
 
 
Cost
$
3,539,303

$
4,177,257

$
1,303,745

$
2,790,342

$
8,973,551

$
1,039,371

$
20,549,413

$
4,013,203

$
36,398,614

$
12,260,054

 
 
 
 
 
 
 
 
 
 
 
Deferred contracts in the accumulation period:
 
 
 
 
 
 
 
 
 
 
  Units owned by participants #
653,140

1,184,882

60,492

145,762

548,227

93,217

1,517,876

196,873

2,552,051

1,339,073

  Minimum unit fair value #*
$
1.929995

$
2.134848

$
19.572903

$
19.988565

$
15.986449

$
15.689650

$
12.483623

$
22.323313

$
16.951539

$
9.989835

  Maximum unit fair value #*
$
21.696327

$
28.771114

$
24.038372

$
25.639729

$
20.600432

$
23.485274

$
33.842612

$
33.295481

$
26.036245

$
33.935009

  Contract liability
$
3,399,546

$
3,491,699

$
1,385,575

$
3,061,894

$
9,666,204

$
1,576,087

$
28,028,390

$
5,177,919

$
49,077,342

$
15,070,417

 
 
 
 
 
 
 
 
 
 
 
Contracts in payout (annuitization) period:
 
 
 
 
 
 
 
 
 
 
Units owned by participants #
1,776

1,138

—

—

894

—

15,636

2,406

31,661

4,378

Minimum unit fair value #*
$
2.152629

$
2.493571

$
—

$
—

$
17.987565

$
—

$
14.154768

$
25.541640

$
18.992524

$
11.194284

Maximum unit fair value #*
$
2.152629

$
2.493571

$
—

$
—

$
17.987565

$
—

$
22.875174

$
31.225529

$
22.897077

$
12.000387

Contract liability
$
3,823

$
2,839

$
—

$
—

$
16,087

$
—

$
346,656

$
69,525

$
664,288

$
51,352

 
 
 
 
 
 
 
 
 
 
 
# Rounded units/unit fair values
 
 
 
 
 
 
 
 
 
 
* For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 










SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Assets and Liabilities (continued)
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MFS® New Discovery Fund
MFS® Total Return Fund
MFS® Value Fund
MFS® Total Return Bond Series
MFS® Research Fund
MFS® High Yield Portfolio
BlackRock Global Allocation V.I. Fund
BlackRock Global Opportunities V.I. Fund
BlackRock Large Cap Focus Growth V.I. Fund
BlackRock Equity Dividend V.I. Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account (3)
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
  Investments, at market value
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
—

—

—

—

—

—

—

—

—

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

30,306

363,832

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

233,835

—

—

695,324

class INIT
30,997,159

137,989,690

43,261,032

62,399,609

4,116,071

29,269,486

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
98,449

8,012,394

18,545,725

12,083,420

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

                   Total investments
31,095,608

146,002,084

61,806,757

74,483,029

4,116,071

29,269,486

233,835

30,306

363,832

695,324

  Due from Sponsor Company
—

—

—

—

—

—

—

—

—

—

  Receivable for fund shares sold
18,321

210,771

16,736

30,393

665

10,354

1,095

6

64

40

  Other assets
—

2

3

—

—

2

—

—

—

—

 Total assets
31,113,929

146,212,857

61,823,496

74,513,422

4,116,736

29,279,842

234,930

30,312

363,896

695,364

 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
  Due to Sponsor Company
18,321

210,771

16,736

30,393

665

10,354

1,095

6

64

40

  Payable for fund shares purchased
—

—

—

—

—

—

—

—

—

—

  Other liabilities
—

—

—

4

2

—

1

—

1

—

 Total liabilities
18,321

210,771

16,736

30,397

667

10,354

1,096

6

65

40

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  For contract liabilities
$
31,095,608

$
146,002,086

$
61,806,760

$
74,483,025

$
4,116,069

$
29,269,488

$
233,834

$
30,306

$
363,831

$
695,324

 
 
 
 
 
 
 
 
 
 
 
Contract Liabilities:
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
—

—

—

—

—

—

—

—

—

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

30,306

363,831

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

233,834

—

—

695,324

class INIT
30,997,159

137,989,692

43,261,036

62,399,608

4,116,069

29,269,488

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
98,449

8,012,394

18,545,724

12,083,417

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total contract liabilities
$
31,095,608

$
146,002,086

$
61,806,760

$
74,483,025

$
4,116,069

$
29,269,488

$
233,834

$
30,306

$
363,831

$
695,324

 
 
 
 
 
 
 
 
 
 
 
Shares:
 
 
 
 
 
 
 
 
 
 
class 1
—

—

—

—

—

—

—

—

—

—

class 2
—

—

—

—

—

—

—

—

—

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

1,737

25,075

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

15,757

—

—

57,370

class INIT
1,542,148

5,586,627

2,067,927

4,720,092

139,528

5,072,701

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
5,301

330,000

902,468

930,209

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total shares
1,547,449

5,916,627

2,970,395

5,650,301

139,528

5,072,701

15,757

1,737

25,075

57,370

 
 
 
 
 
 
 
 
 
 
 
Cost
$
24,483,428

$
122,618,064

$
46,321,022

$
73,034,424

$
3,465,054

$
30,587,818

$
231,226

$
24,429

$
299,886

$
571,313

 
 
 
 
 
 
 
 
 
 
 
Deferred contracts in the accumulation period:
 
 
 
 
 
 
 
 
 
 
  Units owned by participants #
1,224,878

6,778,447

2,223,961

5,281,159

173,623

2,457,528

17,028

1,462

15,345

34,579

  Minimum unit fair value #*
$
17.687057

$
14.465152

$
17.942379

$
11.425059

$
21.680678

$
11.142162

$
13.683454

$
20.726269

$
19.721825

$
19.029838

  Maximum unit fair value #*
$
37.486021

$
26.932336

$
37.043103

$
15.675497

$
27.931035

$
12.166841

$
13.826114

$
20.726269

$
31.796548

$
20.321731

  Contract liability
$
30,752,860

$
143,966,088

$
61,500,520

$
74,219,281

$
4,116,069

$
28,630,116

$
233,834

$
30,306

$
363,831

$
695,324

 
 
 
 
 
 
 
 
 
 
 
Contracts in payout (annuitization) period:
 
 
 
 
 
 
 
 
 
 
Units owned by participants #
11,576

86,148

9,212

18,153

—

54,316

—

—

—

—

Minimum unit fair value #*
$
20.237750

$
16.276187

$
20.188758

$
14.058132

$
—

$
11.709112

$
—

$
—

$
—

$
—

Maximum unit fair value #*
$
35.154951

$
25.149483

$
34.740189

$
14.702865

$
—

$
11.895454

$
—

$
—

$
—

$
—

Contract liability
$
342,748

$
2,035,998

$
306,240

$
263,744

$
—

$
639,372

$
—

$
—

$
—

$
—

 
 
 
 
 
 
 
 
 
 
 
# Rounded units/unit fair values
 
 
 
 
 
 
 
 
 
 
* For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 
 
 










SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Assets and Liabilities (continued)
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Morgan Stanley VIF Core Plus Fixed Income Portfolio
Morgan Stanley VIF Growth Portfolio
Morgan Stanley VIF Mid Cap Growth Portfolio
Invesco V.I. American Value Fund
BlackRock Capital Appreciation V.I. Fund
Columbia Variable Portfolio - Asset Allocation Fund
Columbia Variable Portfolio - Dividend Opportunity Fund
Columbia Variable Portfolio - Income Opportunities Fund
Columbia Variable Portfolio - Mid Cap Growth Fund
Oppenheimer Capital Appreciation Fund/VA
 
Sub-Account (4)
Sub-Account (5)
Sub-Account (6)
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
  Investments, at market value
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
1,931,134

$
7,236,020

$
5,519,773

$
7,176,537

$
—

class 2
—

—

—

—

—

—

—

—

—

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
44,894

280,827

1,503,552

—

—

—

—

—

—

—

class III
—

—

—

—

539,620

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

1,098,112

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

478,269

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

                   Total investments
44,894

280,827

1,503,552

1,098,112

539,620

1,931,134

7,236,020

5,519,773

7,176,537

478,269

  Due from Sponsor Company
—

—

—

—

—

—

—

—

—

—

  Receivable for fund shares sold
6

44

427

455

32

325

74,160

34,676

3,126

63

  Other assets
—

—

—

—

—

—

1

—

—

—

 Total assets
44,900

280,871

1,503,979

1,098,567

539,652

1,931,459

7,310,181

5,554,449

7,179,663

478,332

 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
  Due to Sponsor Company
6

44

427

455

32

325

74,160

34,676

3,126

63

  Payable for fund shares purchased
—

—

—

—

—

—

—

—

—

—

  Other liabilities
—

1

—

—

1

—

—

—

2

2

 Total liabilities
6

45

427

455

33

325

74,160

34,676

3,128

65

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  For contract liabilities
$
44,894

$
280,826

$
1,503,552

$
1,098,112

$
539,619

$
1,931,134

$
7,236,021

$
5,519,773

$
7,176,535

$
478,267

 
 
 
 
 
 
 
 
 
 
 
Contract Liabilities:
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
1,931,134

$
7,236,021

$
5,519,773

$
7,176,535

$
—

class 2
—

—

—

—

—

—

—

—

—

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
44,894

280,826

1,503,552

—

—

—

—

—

—

—

class III
—

—

—

—

539,619

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

1,098,112

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

478,267

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total contract liabilities
$
44,894

$
280,826

$
1,503,552

$
1,098,112

$
539,619

$
1,931,134

$
7,236,021

$
5,519,773

$
7,176,535

$
478,267

 
 
 
 
 
 
 
 
 
 
 
Shares:
 
 
 
 
 
 
 
 
 
 
class 1
—

—

—

—

—

119,427

286,009

730,129

278,268

—

class 2
—

—

—

—

—

—

—

—

—

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
4,104

9,091

126,882

—

—

—

—

—

—

—

class III
—

—

—

—

53,060

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

60,336

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

8,713

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total shares
4,104

9,091

126,882

60,336

53,060

119,427

286,009

730,129

278,268

8,713

 
 
 
 
 
 
 
 
 
 
 
Cost
$
41,556

$
237,371

$
1,340,076

$
925,068

$
478,670

$
1,775,506

$
4,393,149

$
6,364,180

$
4,313,076

$
439,935

 
 
 
 
 
 
 
 
 
 
 
Deferred contracts in the accumulation period:
 
 
 
 
 
 
 
 
 
 
  Units owned by participants #
3,989

13,935

83,954

57,869

26,551

892,355

469,401

474,389

451,684

21,481

  Minimum unit fair value #*
$
11.254344

$
19.401823

$
16.676753

$
16.916529

$
18.925560

$
1.587942

$
14.587562

$
10.981367

$
15.299871

$
16.105084

  Maximum unit fair value #*
$
11.254344

$
20.666424

$
30.222092

$
28.941790

$
21.863019

$
20.891331

$
15.697718

$
11.574276

$
16.087414

$
18.121213

  Contract liability
$
44,894

$
280,826

$
1,503,552

$
1,098,112

$
539,619

$
1,922,874

$
7,152,909

$
5,379,905

$
7,104,218

$
377,175

 
 
 
 
 
 
 
 
 
 
 
Contracts in payout (annuitization) period:
 
 
 
 
 
 
 
 
 
 
Units owned by participants #
—

—

—

—

—

4,584

5,295

12,084

4,495

5,802

Minimum unit fair value #*
$
—

$
—

$
—

$
—

$
—

$
1.801739

$
15.697718

$
11.574276

$
16.087414

$
17.422551

Maximum unit fair value #*
$
—

$
—

$
—

$
—

$
—

$
1.801739

$
15.697718

$
11.574276

$
16.087414

$
17.422551

Contract liability
$
—

$
—

$
—

$
—

$
—

$
8,260

$
83,112

$
139,868

$
72,317

$
101,092

 
 
 
 
 
 
 
 
 
 
 
# Rounded units/unit fair values
 
 
 
 
 
 
 
 
 
 
* For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 













SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Assets and Liabilities (continued)
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oppenheimer Global Fund/VA
Oppenheimer Main Street Fund®/VA
Oppenheimer Main Street Small Cap Fund/VA
Putnam VT Diversified Income Fund
Putnam VT Global Asset Allocation Fund
Putnam VT Growth Opportunities Fund
Putnam VT International Value Fund
Putnam VT International Equity Fund
Putnam VT Small Cap Value Fund
JPMorgan Insurance Trust Core Bond Portfolio
 
Sub-Account
Sub-Account (7)
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
  Investments, at market value
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
—

—

—

—

—

—

—

—

—

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

11,591,824

611,646

1,934,211

37,193

324,315

264,445

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
5,392,021

884,790

4,081,298

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

32,676,595

                   Total investments
5,392,021

884,790

4,081,298

11,591,824

611,646

1,934,211

37,193

324,315

264,445

32,676,595

  Due from Sponsor Company
—

—

—

—

—

—

—

—

—

—

  Receivable for fund shares sold
1,449

111

923

2,382

96

152

5

49

38

7,462

  Other assets
1

—

—

—

1

—

1

—

—

—

 Total assets
5,393,471

884,901

4,082,221

11,594,206

611,743

1,934,363

37,199

324,364

264,483

32,684,057

 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
  Due to Sponsor Company
1,449

111

923

2,382

96

152

5

49

38

7,462

  Payable for fund shares purchased
—

—

—

—

—

—

—

—

—

—

  Other liabilities
—

3

1

—

—

—

—

—

—

3

 Total liabilities
1,449

114

924

2,382

96

152

5

49

38

7,465

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  For contract liabilities
$
5,392,022

$
884,787

$
4,081,297

$
11,591,824

$
611,647

$
1,934,211

$
37,194

$
324,315

$
264,445

$
32,676,592

 
 
 
 
 
 
 
 
 
 
 
Contract Liabilities:
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
—

—

—

—

—

—

—

—

—

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

11,591,824

611,647

1,934,211

37,194

324,315

264,445

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
5,392,022

884,787

4,081,297

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

32,676,592

  Total contract liabilities
$
5,392,022

$
884,787

$
4,081,297

$
11,591,824

$
611,647

$
1,934,211

$
37,194

$
324,315

$
264,445

$
32,676,592

 
 
 
 
 
 
 
 
 
 
 
Shares:
 
 
 
 
 
 
 
 
 
 
class 1
—

—

—

—

—

—

—

—

—

—

class 2
—

—

—

—

—

—

—

—

—

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

1,887,919

33,369

194,003

3,209

21,267

16,324

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
115,018

27,728

160,555

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

2,986,892

  Total shares
115,018

27,728

160,555

1,887,919

33,369

194,003

3,209

21,267

16,324

2,986,892

 
 
 
 
 
 
 
 
 
 
 
Cost
$
3,358,267

$
748,522

$
2,976,961

$
12,411,706

$
541,944

$
1,508,859

$
29,756

$
234,674

$
250,535

$
32,912,725

 
 
 
 
 
 
 
 
 
 
 
Deferred contracts in the accumulation period:
 
 
 
 
 
 
 
 
 
 
  Units owned by participants #
285,296

43,899

178,400

820,853

35,413

141,273

3,319

28,739

12,307

2,270,439

  Minimum unit fair value #*
$
16.959683

$
17.957499

$
20.549282

$
12.746322

$
16.112408

$
13.528598

$
9.521455

$
10.197950

$
18.484955

$
12.054015

  Maximum unit fair value #*
$
28.245530

$
28.057984

$
33.574683

$
19.140031

$
24.147718

$
13.733316

$
16.935698

$
17.651485

$
30.704128

$
21.285546

  Contract liability
$
5,392,022

$
869,899

$
4,081,297

$
11,591,824

$
611,647

$
1,934,211

$
33,454

$
324,315

$
264,445

$
32,168,844

 
 
 
 
 
 
 
 
 
 
 
Contracts in payout (annuitization) period:
 
 
 
 
 
 
 
 
 
 
Units owned by participants #
—

738

—

—

—

—

367

—

—

35,054

Minimum unit fair value #*
$
—

$
19.426449

$
—

$
—

$
—

$
—

$
10.200436

$
—

$
—

$
14.484775

Maximum unit fair value #*
$
—

$
20.205298

$
—

$
—

$
—

$
—

$
10.200436

$
—

$
—

$
14.484775

Contract liability
$
—

$
14,888

$
—

$
—

$
—

$
—

$
3,740

$
—

$
—

$
507,748

 
 
 
 
 
 
 
 
 
 
 
# Rounded units/unit fair values
 
 
 
 
 
 
 
 
 
 
* For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 












SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Assets and Liabilities (continued)
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
JPMorgan Insurance Trust U.S. Equity Portfolio
JPMorgan Insurance Trust Mid Cap Value Portfolio
Putnam VT Equity Income Fund
PIMCO All Asset Fund
PIMCO StocksPLUS Global Portfolio
PIMCO Global Multi-Asset Managed Allocation Portfolio
Jennison 20/20 Focus Fund
Jennison Fund
Prudential Value Portfolio
Prudential SP International Growth Portfolio
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
  Investments, at market value
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
—

—

—

—

—

—

—

—

—

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

146,746

397,931

41,112

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

151,942

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

32,834

165,239

19,584

10,241

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
4,794,811

3,453,381

—

—

—

—

—

—

—

—

                   Total investments
4,794,811

3,453,381

151,942

146,746

397,931

41,112

32,834

165,239

19,584

10,241

  Due from Sponsor Company
—

—

—

—

—

—

—

—

—

—

  Receivable for fund shares sold
1,172

540

8

8

23

3

5

25

3

1

  Other assets
—

—

—

—

—

—

—

1

—

—

 Total assets
4,795,983

3,453,921

151,950

146,754

397,954

41,115

32,839

165,265

19,587

10,242

 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
  Due to Sponsor Company
1,172

540

8

8

23

3

5

25

3

1

  Payable for fund shares purchased
—

—

—

—

—

—

—

—

—

—

  Other liabilities
—

—

—

1

—

—

3

—

1

—

 Total liabilities
1,172

540

8

9

23

3

8

25

4

1

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  For contract liabilities
$
4,794,811

$
3,453,381

$
151,942

$
146,745

$
397,931

$
41,112

$
32,831

$
165,240

$
19,583

$
10,241

 
 
 
 
 
 
 
 
 
 
 
Contract Liabilities:
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

class 2
—

—

—

—

—

—

—

—

—

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

146,745

397,931

41,112

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

151,942

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

32,831

165,240

19,583

10,241

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
4,794,811

3,453,381

—

—

—

—

—

—

—

—

  Total contract liabilities
$
4,794,811

$
3,453,381

$
151,942

$
146,745

$
397,931

$
41,112

$
32,831

$
165,240

$
19,583

$
10,241

 
 
 
 
 
 
 
 
 
 
 
Shares:
 
 
 
 
 
 
 
 
 
 
class 1
—

—

—

—

—

—

—

—

—

—

class 2
—

—

—

—

—

—

—

—

—

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

13,377

41,756

3,189

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

5,693

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

1,099

2,783

626

1,313

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
147,851

291,917

—

—

—

—

—

—

—

—

  Total shares
147,851

291,917

5,693

13,377

41,756

3,189

1,099

2,783

626

1,313

 
 
 
 
 
 
 
 
 
 
 
Cost
$
2,832,672

$
3,386,613

$
106,008

$
146,131

$
422,944

$
40,248

$
12,690

$
63,807

$
11,981

$
7,090

 
 
 
 
 
 
 
 
 
 
 
Deferred contracts in the accumulation period:
 
 
 
 
 
 
 
 
 
 
  Units owned by participants #
165,760

118,047

5,059

11,313

27,479

3,667

10,986

57,786

9,637

7,083

  Minimum unit fair value #*
$
25.464847

$
25.806631

$
23.484207

$
12.308429

$
13.707092

$
10.985891

$
2.553982

$
1.984309

$
1.873801

$
1.445916

  Maximum unit fair value #*
$
43.852687

$
45.688488

$
30.692956

$
13.144011

$
14.852531

$
11.274622

$
26.942932

$
16.225624

$
2.096526

$
1.445916

  Contract liability
$
4,745,153

$
3,418,544

$
151,942

$
146,745

$
397,931

$
41,112

$
32,831

$
142,626

$
19,583

$
10,241

 
 
 
 
 
 
 
 
 
 
 
Contracts in payout (annuitization) period:
 
 
 
 
 
 
 
 
 
 
Units owned by participants #
1,747

1,209

—

—

—

—

—

1,394

—

—

Minimum unit fair value #*
$
28.425441

$
28.806816

$
—

$
—

$
—

$
—

$
—

$
16.225624

$
—

$
—

Maximum unit fair value #*
$
28.425441

$
28.806816

$
—

$
—

$
—

$
—

$
—

$
16.225624

$
—

$
—

Contract liability
$
49,658

$
34,837

$
—

$
—

$
—

$
—

$
—

$
22,614

$
—

$
—

 
 
 
 
 
 
 
 
 
 
 
# Rounded units/unit fair values
 
 
 
 
 
 
 
 
 
 
* For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 













SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Assets and Liabilities (continued)
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ClearBridge Variable Dividend Strategy Portfolio
Western Asset Variable Global High Yield Bond Portfolio
ClearBridge Variable Large Cap Value Portfolio
Invesco V.I. Growth and Income Fund
Invesco V.I. Comstock Fund
Invesco V.I. American Franchise Fund
Invesco V.I. Mid Cap Growth Fund
Wells Fargo VT Index Asset Allocation Fund
Wells Fargo VT International Equity Fund
Wells Fargo VT Small Cap Growth Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
  Investments, at market value
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
926,854

$
839,015

class 2
—

—

—

—

—

—

—

27,523

9,904

71,284

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
24,822

35,473

666,689

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

16,849,132

2,340,030

—

—

—

class S2
—

—

—

1,314,366

233,474

435,898

436,147

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

                   Total investments
24,822

35,473

666,689

1,314,366

233,474

17,285,030

2,776,177

27,523

936,758

910,299

  Due from Sponsor Company
2

20

—

—

—

—

—

—

—

—

  Receivable for fund shares sold
—

—

60

167

42

4,688

443

4

136

131

  Other assets
—

—

—

2

—

—

1

1

—

—

 Total assets
24,824

35,493

666,749

1,314,535

233,516

17,289,718

2,776,621

27,528

936,894

910,430

 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
  Due to Sponsor Company
—

—

60

167

42

4,688

443

4

136

131

  Payable for fund shares purchased
2

20

—

—

—

—

—

—

—

—

  Other liabilities
—

—

—

—

1

—

—

—

1

—

 Total liabilities
2

20

60

167

43

4,688

443

4

137

131

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  For contract liabilities
$
24,822

$
35,473

$
666,689

$
1,314,368

$
233,473

$
17,285,030

$
2,776,178

$
27,524

$
936,757

$
910,299

 
 
 
 
 
 
 
 
 
 
 
Contract Liabilities:
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
926,853

$
839,014

class 2
—

—

—

—

—

—

—

27,524

9,904

71,285

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
24,822

35,473

666,689

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

16,849,133

2,340,031

—

—

—

class S2
—

—

—

1,314,368

233,473

435,897

436,147

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total contract liabilities
$
24,822

$
35,473

$
666,689

$
1,314,368

$
233,473

$
17,285,030

$
2,776,178

$
27,524

$
936,757

$
910,299

 
 
 
 
 
 
 
 
 
 
 
Shares:
 
 
 
 
 
 
 
 
 
 
class 1
—

—

—

—

—

—

—

—

173,568

80,443

class 2
—

—

—

—

—

—

—

1,346

1,841

7,002

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
1,244

4,859

31,110

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

—

—

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

—

—

—

—

—

—

class S1
—

—

—

—

—

267,574

416,376

—

—

—

class S2
—

—

—

58,004

11,367

7,169

78,869

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total shares
1,244

4,859

31,110

58,004

11,367

274,743

495,245

1,346

175,409

87,445

 
 
 
 
 
 
 
 
 
 
 
Cost
$
18,889

$
40,584

$
597,768

$
1,092,252

$
183,112

$
12,677,917

$
2,616,307

$
18,773

$
855,338

$
731,713

 
 
 
 
 
 
 
 
 
 
 
Deferred contracts in the accumulation period:
 
 
 
 
 
 
 
 
 
 
  Units owned by participants #
1,375

13,740

245,521

63,581

8,337

879,473

166,927

5,077

524,870

41,722

  Minimum unit fair value #*
$
18.057513

$
2.581684

$
2.581528

$
17.994307

$
26.910845

$
17.461356

$
15.590526

$
2.361191

$
1.261646

$
2.889300

  Maximum unit fair value #*
$
18.057513

$
2.581684

$
2.581528

$
30.761899

$
30.317055

$
20.796354

$
17.080331

$
23.489624

$
17.958842

$
23.825324

  Contract liability
$
24,822

$
35,473

$
633,819

$
1,314,368

$
233,473

$
16,975,556

$
2,765,966

$
27,524

$
926,500

$
910,299

 
 
 
 
 
 
 
 
 
 
 
Contracts in payout (annuitization) period:
 
 
 
 
 
 
 
 
 
 
Units owned by participants #
—

—

12,733

—

—

15,529

610

—

5,689

—

Minimum unit fair value #*
$
—

$
—

$
2.581528

$
—

$
—

$
19.630227

$
16.735169

$
—

$
1.367192

$
—

Maximum unit fair value #*
$
—

$
—

$
2.581528

$
—

$
—

$
20.102293

$
16.735169

$
—

$
2.336659

$
—

Contract liability
$
—

$
—

$
32,870

$
—

$
—

$
309,474

$
10,212

$
—

$
10,257

$
—

 
 
 
 
 
 
 
 
 
 
 
# Rounded units/unit fair values
 
 
 
 
 
 
 
 
 
 
* For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 










SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Assets and Liabilities (concluded)
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wells Fargo VT Discovery Fund
Wells Fargo VT Opportunity Fund
HIMCO VIT Index Fund
HIMCO VIT Portfolio Diversifier Fund
MFS® Core Equity Portfolio
MFS® Massachusetts Investors Growth Stock Portfolio
MFS® Research International Portfolio
Columbia Variable Portfolio - Large Cap Growth Fund
Columbia Variable Portfolio - Select International Equity Fund
Variable Portfolio - Loomis Sayles Growth Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
  Investments, at market value
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
6,507,590

$
—

$
—

$
—

$
—

$
—

$
7,631,383

$
—

$
5,632,950

class 2
9,239

81,685

—

—

—

—

—

—

5,443,405

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

4,335,835

32,935,414

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

5,067,712

7,033,723

9,677,040

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

                   Total investments
9,239

6,589,275

4,335,835

32,935,414

5,067,712

7,033,723

9,677,040

7,631,383

5,443,405

5,632,950

  Due from Sponsor Company
—

—

—

—

—

—

—

—

—

—

  Receivable for fund shares sold
1

2,174

260

2,055

777

1,202

2,261

1,156

2,423

1,684

  Other assets
1

—

3

—

2

1

1

1

—

—

 Total assets
9,241

6,591,449

4,336,098

32,937,469

5,068,491

7,034,926

9,679,302

7,632,540

5,445,828

5,634,634

 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
  Due to Sponsor Company
1

2,174

260

2,055

777

1,202

2,261

1,157

2,423

1,684

  Payable for fund shares purchased
—

—

—

—

—

—

—

—

—

—

  Other liabilities
—

2

—

2

—

—

—

—

2

—

 Total liabilities
1

2,176

260

2,057

777

1,202

2,261

1,157

2,425

1,684

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  For contract liabilities
$
9,240

$
6,589,273

$
4,335,838

$
32,935,412

$
5,067,714

$
7,033,724

$
9,677,041

$
7,631,383

$
5,443,403

$
5,632,950

 
 
 
 
 
 
 
 
 
 
 
Contract Liabilities:
 
 
 
 
 
 
 
 
 
 
class 1
$
—

$
6,507,588

$
—

$
—

$
—

$
—

$
—

$
7,631,383

$
—

$
5,632,950

class 2
9,240

81,685

—

—

—

—

—

—

5,443,403

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

4,335,838

32,935,412

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

5,067,714

7,033,724

9,677,041

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total contract liabilities
$
9,240

$
6,589,273

$
4,335,838

$
32,935,412

$
5,067,714

$
7,033,724

$
9,677,041

$
7,631,383

$
5,443,403

$
5,632,950

 
 
 
 
 
 
 
 
 
 
 
Shares:
 
 
 
 
 
 
 
 
 
 
class 1
—

240,576

—

—

—

—

—

455,333

—

192,909

class 2
291

3,010

—

—

—

—

—

—

348,489

—

class 4
—

—

—

—

—

—

—

—

—

—

class ADV
—

—

—

—

—

—

—

—

—

—

class B
—

—

—

—

—

—

—

—

—

—

class I
—

—

—

—

—

—

—

—

—

—

class IA
—

—

—

—

—

—

—

—

—

—

class IB
—

—

94,298

4,691,654

—

—

—

—

—

—

class II
—

—

—

—

—

—

—

—

—

—

class III
—

—

—

—

—

—

—

—

—

—

class INIT
—

—

—

—

201,020

378,157

567,568

—

—

—

class S1
—

—

—

—

—

—

—

—

—

—

class S2
—

—

—

—

—

—

—

—

—

—

class SRV
—

—

—

—

—

—

—

—

—

—

class SRV2
—

—

—

—

—

—

—

—

—

—

class VC
—

—

—

—

—

—

—

—

—

—

class Y
—

—

—

—

—

—

—

—

—

—

class - N/A
—

—

—

—

—

—

—

—

—

—

  Total shares
291

243,586

94,298

4,691,654

201,020

378,157

567,568

455,333

348,489

192,909

 
 
 
 
 
 
 
 
 
 
 
Cost
$
6,483

$
4,815,267

$
3,658,762

$
37,019,364

$
4,670,812

$
6,556,397

$
8,669,039

$
5,660,301

$
4,502,491

$
4,041,383

 
 
 
 
 
 
 
 
 
 
 
Deferred contracts in the accumulation period:
 
 
 
 
 
 
 
 
 
 
  Units owned by participants #
278

312,160

160,611

4,755,082

365,495

519,666

820,405

569,861

441,160

399,601

  Minimum unit fair value #*
$
33.198862

$
19.668343

$
10.120144

$
6.574442

$
13.265075

$
12.932622

$
11.368649

$
13.058934

$
12.051765

$
13.656632

  Maximum unit fair value #*
$
33.198862

$
22.612128

$
32.314396

$
7.159054

$
13.797841

$
13.471689

$
12.034167

$
13.317231

$
12.290283

$
13.914318

  Contract liability
$
9,240

$
6,589,273

$
4,335,838

$
32,935,412

$
4,967,596

$
6,894,374

$
9,607,079

$
7,531,525

$
5,375,533

$
5,517,366

 
 
 
 
 
 
 
 
 
 
 
Contracts in payout (annuitization) period:
 
 
 
 
 
 
 
 
 
 
Units owned by participants #
—

—

—

—

7,283

10,357

5,936

7,498

5,522

8,307

Minimum unit fair value #*
$
—

$
—

$
—

$
—

$
13.657713

$
13.334870

$
11.739422

$
13.317231

$
12.290283

$
13.914318

Maximum unit fair value #*
$
—

$
—

$
—

$
—

$
13.797841

$
13.471689

$
11.859904

$
13.317231

$
12.290283

$
13.914318

Contract liability
$
—

$
—

$
—

$
—

$
100,118

$
139,350

$
69,962

$
99,858

$
67,870

$
115,584

 
 
 
 
 
 
 
 
 
 
 
# Rounded units/unit fair values
 
 
 
 
 
 
 
 
 
 
* For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
(1) Formerly Catalyst Dividend Capture VA Fund. Change effective May 1, 2017.
(2) Formerly Catalyst Insider Buying VA Fund. Change effective May 1, 2017.
(3) Formerly BlackRock Large Cap Growth V.I. Fund. Change effective June 12, 2017.
(4) Formerly UIF Core Plus Fixed Income Portfolio. Change effective May 1, 2017.
(5) Formerly UIF Growth Portfolio. Change effective May 1, 2017.
(6) Formerly UIF Mid Cap Growth Portfolio. Change effective May 1, 2017.
(7) Merged with Oppenheimer Equity Income Fund/VA . Change effective April 28, 2017.



SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Operations
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
American Century VP Value Fund
American Century VP Growth Fund
AB VPS Balanced Wealth Strategy Portfolio
AB VPS International Value Portfolio
AB VPS Small/Mid Cap Value Portfolio
AB VPS Value Portfolio
AB VPS International Growth Portfolio
Invesco V.I. Value Opportunities Fund
Invesco V.I. Core Equity Fund
Invesco V.I. Government Securities Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Investment income:
 
 
 
 
 
 
 
 
 
 
  Dividends
$
28,344

$
582

$
81,835

$
94,376

$
4,349

$
2,565

$
5,444

$
60,809

$
314,899

$
1,864,445

 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
  Administrative charges
—

—

—

—

—

—

—

(22,076
)
(50,804
)
(129,263
)
  Mortality and expense risk charges
(13,027
)
(603
)
(61,309
)
(78,594
)
(29,068
)
(3,360
)
(10,973
)
(272,307
)
(523,631
)
(1,504,510
)
    Total expenses
(13,027
)
(603
)
(61,309
)
(78,594
)
(29,068
)
(3,360
)
(10,973
)
(294,383
)
(574,435
)
(1,633,773
)
    Net investment income (loss)
15,317

(21
)
20,526

15,782

(24,719
)
(795
)
(5,529
)
(233,574
)
(259,536
)
230,672

 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized gain (loss) on investments:
 
 
 
 
 
 
 
 
 
 
  Net realized gain (loss) on security transactions
135,711

4,041

(558
)
136,058

59,254

6,457

33,025

(582,186
)
1,067,040

(849,397
)
  Net realized gain distributions
—

12,928

37,244

—

88,531

—

—

—

1,590,052

—

  Change in unrealized appreciation (depreciation) during the period
(6,736
)
6,719

532,355

896,487

67,493

19,962

140,877

3,062,230

924,910

786,852

    Net gain (loss) on investments
128,975

23,688

569,041

1,032,545

215,278

26,419

173,902

2,480,044

3,582,002

(62,545
)
    Net increase (decrease) in net assets resulting from operations
$
144,292

$
23,667

$
589,567

$
1,048,327

$
190,559

$
25,624

$
168,373

$
2,246,470

$
3,322,466

$
168,127

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 
SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Operations (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Invesco V.I. High Yield Fund
Invesco V.I. International Growth Fund
Invesco V.I. Mid Cap Core Equity Fund
Invesco V.I. Small Cap Equity Fund
Invesco V.I. Balanced Risk Allocation Fund
Invesco V.I. Diversified Dividend Fund
Invesco V.I. Government Money Market Fund
American Century VP Mid Cap Value Fund
American Funds Global Bond Fund
American Funds Global Growth and Income Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Investment income:
 
 
 
 
 
 
 
 
 
 
  Dividends
$
20,340

$
472,466

$
169,060

$
—

$
63,124

$
110

$
300,566

$
2,096

$
91,052

$
1,016,820

 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
  Administrative charges
(381
)
(35,945
)
(43,934
)
(45
)
—

—

—

—

—

—

  Mortality and expense risk charges
(11,338
)
(525,802
)
(567,517
)
(402,497
)
(25,903
)
(124
)
(926,375
)
(984
)
(438,750
)
(758,744
)
    Total expenses
(11,719
)
(561,747
)
(611,451
)
(402,542
)
(25,903
)
(124
)
(926,375
)
(984
)
(438,750
)
(758,744
)
    Net investment income (loss)
8,621

(89,281
)
(442,391
)
(402,542
)
37,221

(14
)
(625,809
)
1,112

(347,698
)
258,076

 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized gain (loss) on investments:
 
 
 
 
 
 
 
 
 
 
  Net realized gain (loss) on security transactions
(509
)
2,044,844

545,618

441,563

(18,334
)
271

—

5,271

87,319

2,025,000

  Net realized gain distributions
—

—

655,204

1,009,976

90,549

253

—

2,834

148,029

740,246

  Change in unrealized appreciation (depreciation) during the period
11,898

4,700,217

3,157,461

1,520,521

25,091

(45
)
—

5,958

1,303,288

6,177,446

    Net gain (loss) on investments
11,389

6,745,061

4,358,283

2,972,060

97,306

479

—

14,063

1,538,636

8,942,692

    Net increase (decrease) in net assets resulting from operations
$
20,010

$
6,655,780

$
3,915,892

$
2,569,518

$
134,527

$
465

$
(625,809
)
$
15,175

$
1,190,938

$
9,200,768

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 


SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Operations (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
American Funds Asset Allocation Fund
American Funds Blue Chip Income and Growth Fund
American Funds Bond Fund
American Funds Global Growth Fund
American Funds Growth Fund
American Funds Growth-Income Fund
American Funds International Fund
American Funds New World Fund
American Funds Global Small Capitalization Fund
Columbia Variable Portfolio - Small Company Growth Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Investment income:
 
 
 
 
 
 
 
 
 
 
  Dividends
$
2,338,037

$
1,668,016

$
2,536,318

$
321,880

$
2,068,664

$
4,878,392

$
1,258,103

$
305,915

$
141,859

$
—

 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
  Administrative charges
(238,619
)
(114,672
)
(190,054
)
(74,320
)
(615,410
)
(539,518
)
(128,596
)
(47,130
)
(49,648
)
—

  Mortality and expense risk charges
(2,529,780
)
(1,431,560
)
(1,871,076
)
(778,447
)
(6,638,655
)
(5,689,405
)
(1,370,243
)
(529,895
)
(552,156
)
(99,118
)
    Total expenses
(2,768,399
)
(1,546,232
)
(2,061,130
)
(852,767
)
(7,254,065
)
(6,228,923
)
(1,498,839
)
(577,025
)
(601,804
)
(99,118
)
    Net investment income (loss)
(430,362
)
121,784

475,188

(530,887
)
(5,185,401
)
(1,350,531
)
(240,736
)
(271,110
)
(459,945
)
(99,118
)
 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized gain (loss) on investments:
 
 
 
 
 
 
 
 
 
 
  Net realized gain (loss) on security transactions
6,739,396

3,461,418

(226,237
)
2,157,743

15,342,876

11,400,662

2,202,658

1,266,101

806,015

130,927

  Net realized gain distributions
6,848,852

3,068,592

1,735,432

1,422,007

37,815,821

21,968,865

949,902

—

—

251,474

  Change in unrealized appreciation (depreciation) during the period
6,805,523

5,089,914

341,304

8,987,025

43,880,033

31,657,075

18,695,245

6,376,761

6,670,127

786,238

    Net gain (loss) on investments
20,393,771

11,619,924

1,850,499

12,566,775

97,038,730

65,026,602

21,847,805

7,642,862

7,476,142

1,168,639

    Net increase (decrease) in net assets resulting from operations
$
19,963,409

$
11,741,708

$
2,325,687

$
12,035,888

$
91,853,329

$
63,676,071

$
21,607,069

$
7,371,752

$
7,016,197

$
1,069,521

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Operations (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wells Fargo VT Omega Growth Fund
Fidelity® VIP Growth Portfolio
Fidelity® VIP Contrafund® Portfolio
Fidelity® VIP Mid Cap Portfolio
Fidelity® VIP Value Strategies Portfolio
Fidelity® VIP Dynamic Capital Appreciation Portfolio
Fidelity® VIP Strategic Income Portfolio
Franklin Rising Dividends VIP Fund
Franklin Income VIP Fund
Franklin Large Cap Growth VIP Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Investment income:
 
 
 
 
 
 
 
 
 
 
  Dividends
$
1,690

$
1,615

$
115,018

$
60,615

$
7,613

$
1,863

$
3,488

$
2,498,163

$
14,354,467

$
144,581

 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
  Administrative charges
(1,164
)
—

—

—

—

—

—

(228,989
)
(472,634
)
(34,406
)
  Mortality and expense risk charges
(10,904
)
(29,379
)
(237,014
)
(204,153
)
(11,378
)
(6,806
)
(691
)
(2,645,753
)
(5,616,751
)
(400,786
)
    Total expenses
(12,068
)
(29,379
)
(237,014
)
(204,153
)
(11,378
)
(6,806
)
(691
)
(2,874,742
)
(6,089,385
)
(435,192
)
    Net investment income (loss)
(10,378
)
(27,764
)
(121,996
)
(143,538
)
(3,765
)
(4,943
)
2,797

(376,579
)
8,265,082

(290,611
)
 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized gain (loss) on investments:
 
 
 
 
 
 
 
 
 
 
  Net realized gain (loss) on security transactions
44,469

133,700

1,168,052

719,928

23,199

15,750

19

7,028,288

3,584,080

686,779

  Net realized gain distributions
21,776

137,988

850,453

613,920

145,116

21,353

603

5,951,251

—

1,847,725

  Change in unrealized appreciation (depreciation) during the period
138,739

313,338

900,045

1,011,286

(67,972
)
33,981

4,239

15,048,956

14,242,015

3,034,138

    Net gain (loss) on investments
204,984

585,026

2,918,550

2,345,134

100,343

71,084

4,861

28,028,495

17,826,095

5,568,642

    Net increase (decrease) in net assets resulting from operations
$
194,606

$
557,262

$
2,796,554

$
2,201,596

$
96,578

$
66,141

$
7,658

$
27,651,916

$
26,091,177

$
5,278,031

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Operations (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Franklin Global Real Estate VIP Fund
Franklin Small-Mid Cap Growth VIP Fund
Franklin Small Cap Value VIP Fund
Franklin Strategic Income VIP Fund
Franklin Mutual Shares VIP Fund
Templeton Developing Markets VIP Fund
Templeton Foreign VIP Fund
Templeton Growth VIP Fund
Franklin Mutual Global Discovery VIP Fund
Franklin Flex Cap Growth VIP Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Investment income:
 
 
 
 
 
 
 
 
 
 
  Dividends
$
25,751

$
—

$
61,781

$
3,126,068

$
4,346,824

$
196,365

$
1,627,893

$
1,782,347

$
1,041,672

$
—

 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
  Administrative charges
(1,249
)
(69,203
)
—

(133,317
)
(282,892
)
(23,016
)
(95,409
)
(160,686
)
(75,192
)
(15,894
)
  Mortality and expense risk charges
(11,456
)
(809,023
)
(227,423
)
(1,725,507
)
(3,149,699
)
(297,207
)
(1,036,722
)
(1,790,894
)
(1,014,039
)
(188,649
)
    Total expenses
(12,705
)
(878,226
)
(227,423
)
(1,858,824
)
(3,432,591
)
(320,223
)
(1,132,131
)
(1,951,580
)
(1,089,231
)
(204,543
)
    Net investment income (loss)
13,046

(878,226
)
(165,642
)
1,267,244

914,233

(123,858
)
495,762

(169,233
)
(47,559
)
(204,543
)
 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized gain (loss) on investments:
 
 
 
 
 
 
 
 
 
 
  Net realized gain (loss) on security transactions
780

(1,265,893
)
254,654

(1,323,345
)
6,975,518

5,275

534,143

3,955,742

471,213

(621,763
)
  Net realized gain distributions
—

4,647,823

880,982

—

7,931,195

—

—

—

3,339,428

25,348

  Change in unrealized appreciation (depreciation) during the period
55,437

5,781,786

20,128

3,043,278

(3,202,208
)
5,526,325

7,808,721

13,096,445

146,580

3,194,906

    Net gain (loss) on investments
56,217

9,163,716

1,155,764

1,719,933

11,704,505

5,531,600

8,342,864

17,052,187

3,957,221

2,598,491

    Net increase (decrease) in net assets resulting from operations
$
69,263

$
8,285,490

$
990,122

$
2,987,177

$
12,618,738

$
5,407,742

$
8,838,626

$
16,882,954

$
3,909,662

$
2,393,948

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Operations (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Templeton Global Bond VIP Fund
Hartford Balanced HLS Fund
Hartford Total Return Bond HLS Fund
Hartford Capital Appreciation HLS Fund
Hartford Dividend and Growth HLS Fund
Hartford Healthcare HLS Fund
Hartford Global Growth HLS Fund
Hartford Disciplined Equity HLS Fund
Hartford Growth Opportunities HLS Fund
Hartford High Yield HLS Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Investment income:
 
 
 
 
 
 
 
 
 
 
  Dividends
$
—

$
274,019

$
3,148,188

$
1,100,132

$
1,204,813

$
—

$
3,283

$
105,937

$
—

$
410,050

 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
  Administrative charges
—

(10,980
)
(29,151
)
(24,676
)
(17,628
)
(120
)
(574
)
(320
)
(83
)
(114
)
  Mortality and expense risk charges
(193,250
)
(231,940
)
(1,708,851
)
(1,694,788
)
(1,236,975
)
(999
)
(15,463
)
(176,202
)
(379,816
)
(104,186
)
    Total expenses
(193,250
)
(242,920
)
(1,738,002
)
(1,719,464
)
(1,254,603
)
(1,119
)
(16,037
)
(176,522
)
(379,899
)
(104,300
)
    Net investment income (loss)
(193,250
)
31,099

1,410,186

(619,332
)
(49,790
)
(1,119
)
(12,754
)
(70,585
)
(379,899
)
305,750

 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized gain (loss) on investments:
 
 
 
 
 
 
 
 
 
 
  Net realized gain (loss) on security transactions
(134,694
)
557,199

397,194

3,282,274

2,820,410

7,018

43,333

231,817

1,197,274

(26,101
)
  Net realized gain distributions
38,962

—

—

5,611,272

5,379,855

12,015

44,703

1,243,063

307,906

—

  Change in unrealized appreciation (depreciation) during the period
343,115

1,015,260

1,943,689

11,719,305

3,972,039

(2,474
)
177,704

722,560

5,051,697

130,968

    Net gain (loss) on investments
247,383

1,572,459

2,340,883

20,612,851

12,172,304

16,559

265,740

2,197,440

6,556,877

104,867

    Net increase (decrease) in net assets resulting from operations
$
54,133

$
1,603,558

$
3,751,069

$
19,993,519

$
12,122,514

$
15,440

$
252,986

$
2,126,855

$
6,176,978

$
410,617

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Operations (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hartford International Opportunities HLS Fund
Hartford Small/Mid Cap Equity HLS Fund
Hartford MidCap HLS Fund
Hartford MidCap Value HLS Fund
Hartford Ultrashort Bond HLS Fund
Hartford Small Company HLS Fund
Hartford SmallCap Growth HLS Fund
Hartford Stock HLS Fund
Hartford U.S. Government Securities HLS Fund
Hartford Value HLS Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Investment income:
 
 
 
 
 
 
 
 
 
 
  Dividends
$
94,963

$
9,989

$
—

$
999

$
404,328

$
—

$
555

$
104,442

$
98,462

$
20,667

 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
  Administrative charges
(2,300
)
—

(1,128
)
—

(74,801
)
(2,513
)
(98
)
(8,905
)
(263
)
—

  Mortality and expense risk charges
(111,107
)
(26,668
)
(9,396
)
(7,808
)
(867,763
)
(50,365
)
(22,437
)
(125,212
)
(63,628
)
(18,868
)
    Total expenses
(113,407
)
(26,668
)
(10,524
)
(7,808
)
(942,564
)
(52,878
)
(22,535
)
(134,117
)
(63,891
)
(18,868
)
    Net investment income (loss)
(18,444
)
(16,679
)
(10,524
)
(6,809
)
(538,236
)
(52,878
)
(21,980
)
(29,675
)
34,571

1,799

 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized gain (loss) on investments:
 
 
 
 
 
 
 
 
 
 
  Net realized gain (loss) on security transactions
333,580

(3,890
)
15,743

(4,651
)
74,075

(27,511
)
40,021

364,895

(13,262
)
83,103

  Net realized gain distributions
—

39,159

37,281

21,738

—

—

—

—

—

90,441

  Change in unrealized appreciation (depreciation) during the period
1,171,260

137,224

109,935

25,287

44,958

657,975

209,526

746,326

(25,781
)
(12,016
)
    Net gain (loss) on investments
1,504,840

172,493

162,959

42,374

119,033

630,464

249,547

1,111,221

(39,043
)
161,528

    Net increase (decrease) in net assets resulting from operations
$
1,486,396

$
155,814

$
152,435

$
35,565

$
(419,203
)
$
577,586

$
227,567

$
1,081,546

$
(4,472
)
$
163,327

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Operations (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rational Dividend Capture VA Fund
Rational Insider Buying VA Fund
Lord Abbett Fundamental Equity Fund
Lord Abbett Calibrated Dividend Growth Fund
Lord Abbett Bond Debenture Fund
Lord Abbett Growth and Income Fund
MFS® Growth Fund
MFS® Global Equity Fund
MFS® Investors Trust Fund
MFS® Mid Cap Growth Fund
 
Sub-Account (1)
Sub-Account (2)
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Investment income:
 
 
 
 
 
 
 
 
 
 
  Dividends
$
117,190

$
20,000

$
14,324

$
48,900

$
399,916

$
20,269

$
26,708

$
42,399

$
349,511

$
17,627

 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
  Administrative charges
(4,136
)
(2,605
)
—

—

—

—

(42,015
)
(7,737
)
(78,293
)
(21,958
)
  Mortality and expense risk charges
(44,897
)
(55,017
)
(9,986
)
(47,542
)
(149,396
)
(26,706
)
(460,288
)
(87,224
)
(817,605
)
(259,017
)
    Total expenses
(49,033
)
(57,622
)
(9,986
)
(47,542
)
(149,396
)
(26,706
)
(502,303
)
(94,961
)
(895,898
)
(280,975
)
    Net investment income (loss)
68,157

(37,622
)
4,338

1,358

250,520

(6,437
)
(475,595
)
(52,562
)
(546,387
)
(263,348
)
 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized gain (loss) on investments:
 
 
 
 
 
 
 
 
 
 
  Net realized gain (loss) on security transactions
(3,201
)
(189,557
)
20,165

47,832

133,059

128,022

2,367,565

314,791

2,604,239

494,178

  Net realized gain distributions
—

447,077

105,970

169,133

94,213

150,405

1,066,950

191,200

1,888,711

844,157

  Change in unrealized appreciation (depreciation) during the period
(167,125
)
301,812

25,899

276,682

217,676

(96,490
)
4,258,326

546,440

5,512,821

2,137,432

    Net gain (loss) on investments
(170,326
)
559,332

152,034

493,647

444,948

181,937

7,692,841

1,052,431

10,005,771

3,475,767

    Net increase (decrease) in net assets resulting from operations
$
(102,169
)
$
521,710

$
156,372

$
495,005

$
695,468

$
175,500

$
7,217,246

$
999,869

$
9,459,384

$
3,212,419

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Operations (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MFS® New Discovery Fund
MFS® Total Return Fund
MFS® Value Fund
MFS® Total Return Bond Series
MFS® Research Fund
MFS® High Yield Portfolio
BlackRock Global Allocation V.I. Fund
BlackRock Global Opportunities V.I. Fund
BlackRock Large Cap Focus Growth V.I. Fund
BlackRock Equity Dividend V.I. Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account (3)
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Investment income:
 
 
 
 
 
 
 
 
 
 
  Dividends
$
—

$
3,454,217

$
1,145,532

$
2,459,307

$
53,668

$
1,920,543

$
2,897

$
462

$
148

$
10,625

 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
  Administrative charges
(48,200
)
(230,741
)
(59,171
)
(105,302
)
(6,609
)
—

—

(13
)
(572
)
—

  Mortality and expense risk charges
(503,968
)
(2,455,092
)
(985,133
)
(1,096,585
)
(67,286
)
(544,308
)
(1,505
)
(849
)
(8,419
)
(4,799
)
    Total expenses
(552,168
)
(2,685,833
)
(1,044,304
)
(1,201,887
)
(73,895
)
(544,308
)
(1,505
)
(862
)
(8,991
)
(4,799
)
    Net investment income (loss)
(552,168
)
768,384

101,228

1,257,420

(20,227
)
1,376,235

1,392

(400
)
(8,843
)
5,826

 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized gain (loss) on investments:
 
 
 
 
 
 
 
 
 
 
  Net realized gain (loss) on security transactions
900,994

4,596,648

3,572,860

420,657

165,166

(169,720
)
(21
)
2,092

40,913

25,981

  Net realized gain distributions
569,214

4,040,505

2,429,519

—

263,595

—

2,698

3,808

60,068

36,075

  Change in unrealized appreciation (depreciation) during the period
5,724,964

5,464,497

2,857,899

404,717

342,129

221,392

22,158

2,158

12,094

33,807

    Net gain (loss) on investments
7,195,172

14,101,650

8,860,278

825,374

770,890

51,672

24,835

8,058

113,075

95,863

    Net increase (decrease) in net assets resulting from operations
$
6,643,004

$
14,870,034

$
8,961,506

$
2,082,794

$
750,663

$
1,427,907

$
26,227

$
7,658

$
104,232

$
101,689

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Operations (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Morgan Stanley VIF Core Plus Fixed Income Portfolio
Morgan Stanley VIF Growth Portfolio
Morgan Stanley VIF Mid Cap Growth Portfolio
Invesco V.I. American Value Fund
Morgan Stanley Mid Cap Growth Portfolio
BlackRock Capital Appreciation V.I. Fund
Columbia Variable Portfolio - Asset Allocation Fund
Columbia Variable Portfolio - Dividend Opportunity Fund
Columbia Variable Portfolio - Income Opportunities Fund
Columbia Variable Portfolio - Mid Cap Growth Fund
 
Sub-Account (4)
Sub-Account (5)
Sub-Account (6)
Sub-Account
Sub-Account (7)
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Investment income:
 
 
 
 
 
 
 
 
 
 
  Dividends
$
1,295

$
—

$
—

$
6,195

$
—

$
—

$
30,532

$
—

$
362,104

$
—

 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
  Administrative charges
—

—

—

—

(214
)
—

—

—

(2,794
)
(2,143
)
  Mortality and expense risk charges
(756
)
(5,306
)
(22,877
)
(15,547
)
(1,307
)
(3,894
)
(38,401
)
(157,762
)
(120,583
)
(151,004
)
    Total expenses
(756
)
(5,306
)
(22,877
)
(15,547
)
(1,521
)
(3,894
)
(38,401
)
(157,762
)
(123,377
)
(153,147
)
    Net investment income (loss)
539

(5,306
)
(22,877
)
(9,352
)
(1,521
)
(3,894
)
(7,869
)
(157,762
)
238,727

(153,147
)
 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized gain (loss) on investments:
 
 
 
 
 
 
 
 
 
 
  Net realized gain (loss) on security transactions
91

7,750

(5,003
)
35,906

(2,810
)
20,372

2,084

535,445

(170,029
)
408,906

  Net realized gain distributions
—

23,552

—

12,254

—

58,416

1,748

—

—

—

  Change in unrealized appreciation (depreciation) during the period
1,152

67,675

474,022

43,175

36,544

79,015

239,139

451,678

184,347

1,050,523

    Net gain (loss) on investments
1,243

98,977

469,019

91,335

33,734

157,803

242,971

987,123

14,318

1,459,429

    Net increase (decrease) in net assets resulting from operations
$
1,782

$
93,671

$
446,142

$
81,983

$
32,213

$
153,909

$
235,102

$
829,361

$
253,045

$
1,306,282

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Operations (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oppenheimer Capital Appreciation Fund/VA
Oppenheimer Global Fund/VA
Oppenheimer Main Street Fund®/VA
Oppenheimer Main Street Small Cap Fund/VA
Oppenheimer Equity Income Fund/VA
Putnam VT Diversified Income Fund
Putnam VT Global Asset Allocation Fund
Putnam VT Growth Opportunities Fund
Putnam VT International Value Fund
Putnam VT International Equity Fund
 
Sub-Account
Sub-Account
Sub-Account (8)
Sub-Account
Sub-Account (9)
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Investment income:
 
 
 
 
 
 
 
 
 
 
  Dividends
$
52

$
36,940

$
15,638

$
27,893

$
6,016

$
679,630

$
10,262

$
2,097

$
599

$
6,816

 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
  Administrative charges
—

—

—

—

—

—

—

—

—

—

  Mortality and expense risk charges
(8,626
)
(81,978
)
(17,285
)
(67,217
)
(1,395
)
(183,970
)
(12,958
)
(13,396
)
(707
)
(5,832
)
    Total expenses
(8,626
)
(81,978
)
(17,285
)
(67,217
)
(1,395
)
(183,970
)
(12,958
)
(13,396
)
(707
)
(5,832
)
    Net investment income (loss)
(8,574
)
(45,038
)
(1,647
)
(39,324
)
4,621

495,660

(2,696
)
(11,299
)
(108
)
984

 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized gain (loss) on investments:
 
 
 
 
 
 
 
 
 
 
  Net realized gain (loss) on security transactions
7,762

266,185

102,915

293,047

32,490

(224,371
)
41,993

83,560

3,172

10,215

  Net realized gain distributions
51,556

—

25,649

232,621

—

—

24,347

27,032

—

—

  Change in unrealized appreciation (depreciation) during the period
69,692

1,242,259

27,365

(262
)
(30,257
)
373,291

21,224

411,278

6,795

56,949

    Net gain (loss) on investments
129,010

1,508,444

155,929

525,406

2,233

148,920

87,564

521,870

9,967

67,164

    Net increase (decrease) in net assets resulting from operations
$
120,436

$
1,463,406

$
154,282

$
486,082

$
6,854

$
644,580

$
84,868

$
510,571

$
9,859

$
68,148

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 


SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Operations (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Putnam VT Small Cap Value Fund
JPMorgan Insurance Trust Core Bond Portfolio
JPMorgan Insurance Trust U.S. Equity Portfolio
JPMorgan Insurance Trust Intrepid Mid Cap Portfolio
JPMorgan Insurance Trust Mid Cap Value Portfolio
Putnam VT Equity Income Fund
PIMCO All Asset Fund
PIMCO StocksPLUS Global Portfolio
PIMCO Global Multi-Asset Managed Allocation Portfolio
Jennison 20/20 Focus Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account (10)
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Investment income:
 
 
 
 
 
 
 
 
 
 
  Dividends
$
2,577

$
883,718

$
42,032

$
—

$
29,145

$
2,387

$
6,402

$
13,765

$
379

$
—

 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
  Administrative charges
—

—

—

—

—

—

—

—

—

(57
)
  Mortality and expense risk charges
(5,828
)
(528,815
)
(75,261
)
(34,307
)
(58,213
)
(869
)
(971
)
(2,858
)
(172
)
(642
)
    Total expenses
(5,828
)
(528,815
)
(75,261
)
(34,307
)
(58,213
)
(869
)
(971
)
(2,858
)
(172
)
(699
)
    Net investment income (loss)
(3,251
)
354,903

(33,229
)
(34,307
)
(29,068
)
1,518

5,431

10,907

207

(699
)
 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized gain (loss) on investments:
 
 
 
 
 
 
 
 
 
 
  Net realized gain (loss) on security transactions
(4,048
)
(66,247
)
436,476

298,411

(27,308
)
1,041

(154
)
(21,627
)
(50
)
13,072

  Net realized gain distributions
14,624

—

47,239

—

162,538

4,227

—

—

—

—

  Change in unrealized appreciation (depreciation) during the period
8,519

394,390

440,618

(23,534
)
300,063

16,760

11,351

93,704

1,382

(3,077
)
    Net gain (loss) on investments
19,095

328,143

924,333

274,877

435,293

22,028

11,197

72,077

1,332

9,995

    Net increase (decrease) in net assets resulting from operations
$
15,844

$
683,046

$
891,104

$
240,570

$
406,225

$
23,546

$
16,628

$
82,984

$
1,539

$
9,296

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Operations (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jennison Fund
Prudential Value Portfolio
Prudential SP International Growth Portfolio
ClearBridge Variable Dividend Strategy Portfolio
Western Asset Variable Global High Yield Bond Portfolio
ClearBridge Variable Large Cap Value Portfolio
Invesco V.I. Growth and Income Fund
Invesco V.I. Comstock Fund
Invesco V.I. American Franchise Fund
Invesco V.I. Mid Cap Growth Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Investment income:
 
 
 
 
 
 
 
 
 
 
  Dividends
$
—

$
—

$
—

$
351

$
1,858

$
8,865

$
16,973

$
4,254

$
13,373

$
—

 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
  Administrative charges
(230
)
—

—

—

(52
)
(1,019
)
(358
)
(254
)
—

—

  Mortality and expense risk charges
(2,519
)
(414
)
(174
)
(321
)
(437
)
(8,546
)
(20,119
)
(4,510
)
(324,452
)
(53,147
)
    Total expenses
(2,749
)
(414
)
(174
)
(321
)
(489
)
(9,565
)
(20,477
)
(4,764
)
(324,452
)
(53,147
)
    Net investment income (loss)
(2,749
)
(414
)
(174
)
30

1,369

(700
)
(3,504
)
(510
)
(311,079
)
(53,147
)
 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized gain (loss) on investments:
 
 
 
 
 
 
 
 
 
 
  Net realized gain (loss) on security transactions
6,922

9,957

756

172

(264
)
11,201

58,402

18,315

1,127,139

33,597

  Net realized gain distributions
—

—

—

—

—

19,074

54,617

9,320

1,338,649

180,021

  Change in unrealized appreciation (depreciation) during the period
39,611

(5,979
)
2,930

3,528

1,290

54,712

44,747

4,030

1,536,414

366,631

    Net gain (loss) on investments
46,533

3,978

3,686

3,700

1,026

84,987

157,766

31,665

4,002,202

580,249

    Net increase (decrease) in net assets resulting from operations
$
43,784

$
3,564

$
3,512

$
3,730

$
2,395

$
84,287

$
154,262

$
31,155

$
3,691,123

$
527,102

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Operations (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wells Fargo VT Index Asset Allocation Fund
Wells Fargo VT International Equity Fund
Wells Fargo VT Small Cap Growth Fund
Wells Fargo VT Discovery Fund
Wells Fargo VT Opportunity Fund
HIMCO VIT Index Fund
HIMCO VIT Portfolio Diversifier Fund
HIMCO VIT American Funds Asset Allocation Fund
HIMCO VIT American Funds Blue Chip Income and Growth Fund
HIMCO VIT American Funds Bond Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account (11)
Sub-Account (12)
Sub-Account (13)
 
 
 
 
 
 
 
 
 
 
 
Investment income:
 
 
 
 
 
 
 
 
 
 
  Dividends
$
200

$
27,850

$
—

$
—

$
61,534

$
80,503

$
347,226

$
127,606

$
157,671

$
601,035

 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
  Administrative charges
—

—

—

—

—

(9,002
)
—

(7,456
)
(5,223
)
(28,550
)
  Mortality and expense risk charges
(490
)
(14,883
)
(15,297
)
(112
)
(104,858
)
(24,555
)
(242,909
)
(151,194
)
(74,622
)
(259,854
)
    Total expenses
(490
)
(14,883
)
(15,297
)
(112
)
(104,858
)
(33,557
)
(242,909
)
(158,650
)
(79,845
)
(288,404
)
    Net investment income (loss)
(290
)
12,967

(15,297
)
(112
)
(43,324
)
46,946

104,317

(31,044
)
77,826

312,631

 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized gain (loss) on investments:
 
 
 
 
 
 
 
 
 
 
  Net realized gain (loss) on security transactions
371

(1,523
)
27,018

39

404,139

173,768

(525,085
)
(1,873,726
)
(1,839,621
)
(814,014
)
  Net realized gain distributions
1,133

—

26,197

435

542,134

256,549

—

2,381,898

1,772,763

73,738

  Change in unrealized appreciation (depreciation) during the period
1,392

173,702

151,796

1,629

260,445

368,820

(981,979
)
741,564

454,850

857,631

    Net gain (loss) on investments
2,896

172,179

205,011

2,103

1,206,718

799,137

(1,507,064
)
1,249,736

387,992

117,355

    Net increase (decrease) in net assets resulting from operations
$
2,606

$
185,146

$
189,714

$
1,991

$
1,163,394

$
846,083

$
(1,402,747
)
$
1,218,692

$
465,818

$
429,986

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Operations (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
HIMCO VIT American Funds Global Bond Fund
HIMCO VIT American Funds Global Growth and Income Fund
HIMCO VIT American Funds Global Growth Fund
HIMCO VIT American Funds Global Small Capitalization Fund
HIMCO VIT American Funds Growth Fund
HIMCO VIT American Funds Growth-Income Fund
HIMCO VIT American Funds International Fund
HIMCO VIT American Funds New World Fund
MFS® Core Equity Portfolio
MFS® Massachusetts Investors Growth Stock Portfolio
 
Sub-Account (14)
Sub-Account (15)
Sub-Account (16)
Sub-Account (17)
Sub-Account (18)
Sub-Account (19)
Sub-Account (20)
Sub-Account (21)
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Investment income:
 
 
 
 
 
 
 
 
 
 
  Dividends
$
8,328

$
116,943

$
24,548

$
11,430

$
204,264

$
429,546

$
288,774

$
17,583

$
45,240

$
42,590

 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
  Administrative charges
(2,362
)
(6,705
)
(2,399
)
(6,843
)
(51,699
)
(28,117
)
(33,586
)
(3,338
)
—

—

  Mortality and expense risk charges
(25,595
)
(109,086
)
(39,894
)
(90,201
)
(550,964
)
(298,916
)
(325,951
)
(59,736
)
(90,331
)
(126,777
)
    Total expenses
(27,957
)
(115,791
)
(42,293
)
(97,044
)
(602,663
)
(327,033
)
(359,537
)
(63,074
)
(90,331
)
(126,777
)
    Net investment income (loss)
(19,629
)
1,152

(17,745
)
(85,614
)
(398,399
)
102,513

(70,763
)
(45,491
)
(45,091
)
(84,187
)
 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized gain (loss) on investments:
 
 
 
 
 
 
 
 
 
 
  Net realized gain (loss) on security transactions
(36,478
)
(2,640,356
)
(531,916
)
(1,924,178
)
(20,772,670
)
(10,706,797
)
(5,010,733
)
372,314

20,836

(389
)
  Net realized gain distributions
—

3,538,457

1,020,326

2,382,733

21,820,667

10,793,152

8,504,782

326,085

278,726

339,583

  Change in unrealized appreciation (depreciation) during the period
140,245

694,387

225,228

884,389

9,102,898

3,621,551

3,205,499

302,526

734,233

1,315,639

    Net gain (loss) on investments
103,767

1,592,488

713,638

1,342,944

10,150,895

3,707,906

6,699,548

1,000,925

1,033,795

1,654,833

    Net increase (decrease) in net assets resulting from operations
$
84,138

$
1,593,640

$
695,893

$
1,257,330

$
9,752,496

$
3,810,419

$
6,628,785

$
955,434

$
988,704

$
1,570,646

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Operations (concluded)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MFS® Research International Portfolio
Columbia Variable Portfolio - Large Cap Growth Fund
Columbia Variable Portfolio - Select International Equity Fund
Variable Portfolio - Loomis Sayles Growth Fund






 
Sub-Account
Sub-Account
Sub-Account
Sub-Account






 
 
 
 
 
 
 
 
 
 
 
Investment income:
 
 
 
 
 
 
 
 
 
 
  Dividends
$
178,800

$
—

$
100,237

$
—







 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
  Administrative charges
—

—

—

—







  Mortality and expense risk charges
(173,741
)
(156,457
)
(115,681
)
(113,201
)






    Total expenses
(173,741
)
(156,457
)
(115,681
)
(113,201
)






    Net investment income (loss)
5,059

(156,457
)
(15,444
)
(113,201
)






 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized gain (loss) on investments:
 
 
 
 
 
 
 
 
 
 
  Net realized gain (loss) on security transactions
28,106

190,682

87,672

152,281







  Net realized gain distributions
—

—

—

—







  Change in unrealized appreciation (depreciation) during the period
2,221,814

1,610,467

1,085,973

1,346,874







    Net gain (loss) on investments
2,249,920

1,801,149

1,173,645

1,499,155







    Net increase (decrease) in net assets resulting from operations
$
2,254,979

$
1,644,692

$
1,158,201

$
1,385,954







 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

 
 
 
 
 
 
 
 
(1) Formerly Catalyst Dividend Capture VA Fund. Change effective May 1, 2017.
(2) Formerly Catalyst Insider Buying VA Fund. Change effective May 1, 2017.
(3) Formerly BlackRock Large Cap Growth V.I. Fund. Change effective June 12, 2017.
(4) Formerly UIF Core Plus Fixed Income Portfolio. Change effective May 1, 2017.
(5) Formerly UIF Growth Portfolio. Change effective May 1, 2017.
(6) Formerly UIF Mid Cap Growth Portfolio. Change effective May 1, 2017.
(7) Liquidated as of September 29, 2017.
(8) Merged with Oppenheimer Equity Income Fund/VA . Change effective April 28, 2017.
(9) Merged with Oppenheimer Main Street Fund®/VA . Change effective April 28, 2017.
(10) Liquidated as of May 19, 2017.
(11) Liquidated as of November 10, 2017.
(12) Liquidated as of November 10, 2017.
(13) Liquidated as of November 10, 2017.
(14) Liquidated as of November 10, 2017.
(15) Liquidated as of November 10, 2017.
(16) Liquidated as of November 10, 2017.
(17) Liquidated as of November 10, 2017.
(18) Liquidated as of November 10, 2017.
(19) Liquidated as of November 10, 2017.
(20) Liquidated as of November 10, 2017.
(21) Liquidated as of November 10, 2017.



SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
American Century VP Value Fund
American Century VP Growth Fund
AB VPS Balanced Wealth Strategy Portfolio
AB VPS International Value Portfolio
AB VPS Small/Mid Cap Value Portfolio
AB VPS Value Portfolio
AB VPS International Growth Portfolio
Invesco V.I. Value Opportunities Fund
Invesco V.I. Core Equity Fund
Invesco V.I. Government Securities Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
15,317

$
(21
)
$
20,526

$
15,782

$
(24,719
)
$
(795
)
$
(5,529
)
$
(233,574
)
$
(259,536
)
$
230,672

  Net realized gain (loss) on security transactions
135,711

4,041

(558
)
136,058

59,254

6,457

33,025

(582,186
)
1,067,040

(849,397
)
  Net realized gain distributions
—

12,928

37,244

—

88,531

—

—

—

1,590,052

—

  Change in unrealized appreciation (depreciation) during the period
(6,736
)
6,719

532,355

896,487

67,493

19,962

140,877

3,062,230

924,910

786,852

  Net increase (decrease) in net assets resulting from operations
144,292

23,667

589,567

1,048,327

190,559

25,624

168,373

2,246,470

3,322,466

168,127

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
2,717

1,950

43,080

18,936

16,320

—

—

48,651

195,734

398,657

  Net transfers
(66,457
)
(5,906
)
131,201

(263,448
)
(1,665
)
3,190

11,870

(384,487
)
256,313

6,169,042

  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(170,323
)
(3,533
)
(506,222
)
(511,925
)
(349,628
)
(19,663
)
(107,288
)
(1,860,249
)
(4,063,800
)
(12,505,583
)
  Other transactions
2

—

—

91

—

(1
)
—

662

636

4,672

  Death benefits
(1,986
)
—

(190,555
)
(157,672
)
(30,065
)
—

(3,678
)
(354,416
)
(777,935
)
(2,478,095
)
  Net annuity transactions
—

—

—

(34,437
)
—

(11,842
)
—

56,757

(37,135
)
135,214

  Net increase (decrease) in net assets resulting from unit transactions
(236,047
)
(7,489
)
(522,496
)
(948,455
)
(365,038
)
(28,316
)
(99,096
)
(2,493,082
)
(4,426,187
)
(8,276,093
)
  Net increase (decrease) in net assets
(91,755
)
16,178

67,071

99,872

(174,479
)
(2,692
)
69,277

(246,612
)
(1,103,721
)
(8,107,966
)
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
1,933,623

81,729

4,357,815

4,843,999

2,065,868

241,028

541,877

16,246,582

31,902,428

95,179,434

  End of period
$
1,841,868

$
97,907

$
4,424,886

$
4,943,871

$
1,891,389

$
238,336

$
611,154

$
15,999,970

$
30,798,707

$
87,071,468

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Invesco V.I. High Yield Fund
Invesco V.I. International Growth Fund
Invesco V.I. Mid Cap Core Equity Fund
Invesco V.I. Small Cap Equity Fund
Invesco V.I. Balanced Risk Allocation Fund
Invesco V.I. Diversified Dividend Fund
Invesco V.I. Government Money Market Fund
American Century VP Mid Cap Value Fund
American Funds Global Bond Fund
American Funds Global Growth and Income Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
8,621

$
(89,281
)
$
(442,391
)
$
(402,542
)
$
37,221

$
(14
)
$
(625,809
)
$
1,112

$
(347,698
)
$
258,076

  Net realized gain (loss) on security transactions
(509
)
2,044,844

545,618

441,563

(18,334
)
271

—

5,271

87,319

2,025,000

  Net realized gain distributions
—

—

655,204

1,009,976

90,549

253

—

2,834

148,029

740,246

  Change in unrealized appreciation (depreciation) during the period
11,898

4,700,217

3,157,461

1,520,521

25,091

(45
)
—

5,958

1,303,288

6,177,446

  Net increase (decrease) in net assets resulting from operations
20,010

6,655,780

3,915,892

2,569,518

134,527

465

(625,809
)
15,175

1,190,938

9,200,768

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
—

339,820

237,201

172,690

91,840

—

618,789

653

81,575

214,114

  Net transfers
12,435

(1,060,341
)
(903,406
)
(429,560
)
(93,406
)
—

20,094,315

877

3,641,069

7,836,969

  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(60,442
)
(4,921,157
)
(3,655,060
)
(2,766,641
)
(405,811
)
(540
)
(24,809,499
)
(5,878
)
(3,280,041
)
(5,809,776
)
  Other transactions
—

1,786

322

1,103

—

—

2,101

—

88

896

  Death benefits
(42,944
)
(821,208
)
(359,487
)
(404,303
)
(42,732
)
—

(2,426,825
)
(301
)
(452,533
)
(956,256
)
  Net annuity transactions
(459
)
38,205

52,299

35,509

—

—

40,127

—

90,911

300,077

  Net increase (decrease) in net assets resulting from unit transactions
(91,410
)
(6,422,895
)
(4,628,131
)
(3,391,202
)
(450,109
)
(540
)
(6,480,992
)
(4,649
)
81,069

1,586,024

  Net increase (decrease) in net assets
(71,400
)
232,885

(712,239
)
(821,684
)
(315,582
)
(75
)
(7,106,801
)
10,526

1,272,007

10,786,792

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
580,337

34,208,224

32,861,252

23,354,664

1,847,282

7,639

56,196,085

140,836

24,561,109

40,552,639

  End of period
$
508,937

$
34,441,109

$
32,149,013

$
22,532,980

$
1,531,700

$
7,564

$
49,089,284

$
151,362

$
25,833,116

$
51,339,431

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 
SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
American Funds Asset Allocation Fund
American Funds Blue Chip Income and Growth Fund
American Funds Bond Fund
American Funds Global Growth Fund
American Funds Growth Fund
American Funds Growth-Income Fund
American Funds International Fund
American Funds New World Fund
American Funds Global Small Capitalization Fund
Columbia Variable Portfolio - Small Company Growth Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(430,362
)
$
121,784

$
475,188

$
(530,887
)
$
(5,185,401
)
$
(1,350,531
)
$
(240,736
)
$
(271,110
)
$
(459,945
)
$
(99,118
)
  Net realized gain (loss) on security transactions
6,739,396

3,461,418

(226,237
)
2,157,743

15,342,876

11,400,662

2,202,658

1,266,101

806,015

130,927

  Net realized gain distributions
6,848,852

3,068,592

1,735,432

1,422,007

37,815,821

21,968,865

949,902

—

—

251,474

  Change in unrealized appreciation (depreciation) during the period
6,805,523

5,089,914

341,304

8,987,025

43,880,033

31,657,075

18,695,245

6,376,761

6,670,127

786,238

  Net increase (decrease) in net assets resulting from operations
19,963,409

11,741,708

2,325,687

12,035,888

91,853,329

63,676,071

21,607,069

7,371,752

7,016,197

1,069,521

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
663,739

289,233

503,431

141,655

2,125,879

1,559,030

230,956

170,932

126,631

472

  Net transfers
11,369,016

4,383,109

28,810,606

3,320,639

35,817,524

18,424,689

25,755,964

4,982,847

6,635,811

(210,815
)
  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(18,473,980
)
(10,319,174
)
(15,956,561
)
(5,927,648
)
(49,803,172
)
(42,212,553
)
(10,755,507
)
(4,055,702
)
(4,820,500
)
(295,717
)
  Other transactions
1,467

340

14,205

394

6,975

7,009

551

66

528

120

  Death benefits
(3,277,309
)
(1,211,539
)
(2,919,767
)
(727,713
)
(8,026,835
)
(6,909,627
)
(1,303,648
)
(429,205
)
(428,823
)
(75,815
)
  Net annuity transactions
362,176

5,645

250,544

(61,762
)
(59,716
)
329,433

(35,627
)
(16,073
)
(10,787
)
(5,690
)
  Net increase (decrease) in net assets resulting from unit transactions
(9,354,891
)
(6,852,386
)
10,702,458

(3,254,435
)
(19,939,345
)
(28,802,019
)
13,892,689

652,865

1,502,860

(587,445
)
  Net increase (decrease) in net assets
10,608,518

4,889,322

13,028,145

8,781,453

71,913,984

34,874,052

35,499,758

8,024,617

8,519,057

482,076

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
148,582,358

84,142,065

123,541,317

43,944,517

375,951,324

337,129,140

$
75,344,612

$
28,455,125

$
31,146,908

$
4,334,457

  End of period
$
159,190,876

$
89,031,387

$
136,569,462

$
52,725,970

$
447,865,308

$
372,003,192

$
110,844,370

$
36,479,742

$
39,665,965

$
4,816,533

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wells Fargo VT Omega Growth Fund
Fidelity® VIP Growth Portfolio
Fidelity® VIP Contrafund® Portfolio
Fidelity® VIP Mid Cap Portfolio
Fidelity® VIP Value Strategies Portfolio
Fidelity® VIP Dynamic Capital Appreciation Portfolio
Fidelity® VIP Strategic Income Portfolio
Franklin Rising Dividends VIP Fund
Franklin Income VIP Fund
Franklin Large Cap Growth VIP Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(10,378
)
$
(27,764
)
$
(121,996
)
$
(143,538
)
$
(3,765
)
$
(4,943
)
$
2,797

$
(376,579
)
$
8,265,082

$
(290,611
)
  Net realized gain (loss) on security transactions
44,469

133,700

1,168,052

719,928

23,199

15,750

19

7,028,288

3,584,080

686,779

  Net realized gain distributions
21,776

137,988

850,453

613,920

145,116

21,353

603

5,951,251

—

1,847,725

  Change in unrealized appreciation (depreciation) during the period
138,739

313,338

900,045

1,011,286

(67,972
)
33,981

4,239

15,048,956

14,242,015

3,034,138

  Net increase (decrease) in net assets resulting from operations
194,606

557,262

2,796,554

2,201,596

96,578

66,141

7,658

27,651,916

26,091,177

5,278,031

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
—

11,147

129,694

49,294

32,966

—

—

856,734

2,008,736

70,317

  Net transfers
46,226

(173,333
)
(766,939
)
(372,732
)
3,923

14,035

4,000

(4,514,340
)
(3,055,063
)
313,311

  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(302,893
)
(271,954
)
(2,413,733
)
(2,297,144
)
(36,476
)
(141,479
)
(2,781
)
(20,237,569
)
(46,592,144
)
(2,956,656
)
  Other transactions
70

144

(274
)
235

—

(1
)
—

2,548

15,824

435

  Death benefits
—

(28,033
)
(361,875
)
(303,506
)
(22,018
)
—

—

(2,965,559
)
(8,089,313
)
(509,244
)
  Net annuity transactions
(4,192
)
(30,956
)
(37,810
)
(1,149
)
—

(1,386
)
—

12,466

421,162

(2,881
)
  Net increase (decrease) in net assets resulting from unit transactions
(260,789
)
(492,985
)
(3,450,937
)
(2,925,002
)
(21,605
)
(128,831
)
1,219

(26,845,720
)
(55,290,798
)
(3,084,718
)
  Net increase (decrease) in net assets
(66,183
)
64,277

(654,383
)
(723,406
)
74,973

(62,690
)
8,877

806,196

(29,199,621
)
2,193,313

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
658,776

1,750,447

15,545,759

13,298,984

581,883

337,303

109,810

163,348,929

362,542,937

21,434,368

  End of period
$
592,593

$
1,814,724

$
14,891,376

$
12,575,578

$
656,856

$
274,613

$
118,687

$
164,155,125

$
333,343,316

$
23,627,681

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 


SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Franklin Global Real Estate VIP Fund
Franklin Small-Mid Cap Growth VIP Fund
Franklin Small Cap Value VIP Fund
Franklin Strategic Income VIP Fund
Franklin Mutual Shares VIP Fund
Templeton Developing Markets VIP Fund
Templeton Foreign VIP Fund
Templeton Growth VIP Fund
Franklin Mutual Global Discovery VIP Fund
Franklin Flex Cap Growth VIP Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
13,046

$
(878,226
)
$
(165,642
)
$
1,267,244

$
914,233

$
(123,858
)
$
495,762

$
(169,233
)
$
(47,559
)
$
(204,543
)
  Net realized gain (loss) on security transactions
780

(1,265,893
)
254,654

(1,323,345
)
6,975,518

5,275

534,143

3,955,742

471,213

(621,763
)
  Net realized gain distributions
—

4,647,823

880,982

—

7,931,195

—

—

—

3,339,428

25,348

  Change in unrealized appreciation (depreciation) during the period
55,437

5,781,786

20,128

3,043,278

(3,202,208
)
5,526,325

7,808,721

13,096,445

146,580

3,194,906

  Net increase (decrease) in net assets resulting from operations
69,263

8,285,490

990,122

2,987,177

12,618,738

5,407,742

8,838,626

16,882,954

3,909,662

2,393,948

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
13

217,273

33,318

392,953

694,281

167,932

259,904

376,573

288,934

99,208

  Net transfers
(80,087
)
(179,999
)
(1,269,494
)
3,866,053

(1,416,596
)
546,689

(1,218,325
)
(2,240,286
)
(670,497
)
(185,709
)
  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(27,897
)
(5,934,644
)
(2,212,915
)
(13,029,899
)
(25,818,752
)
(2,518,547
)
(8,327,277
)
(14,235,308
)
(6,857,857
)
(1,277,677
)
  Other transactions
—

1,092

93

2,185

9,518

1,287

1,071

6,400

5,648

727

  Death benefits
(1,171
)
(582,302
)
(112,348
)
(1,978,827
)
(4,597,121
)
(181,560
)
(1,386,214
)
(2,221,128
)
(955,878
)
(134,543
)
  Net annuity transactions
(3,455
)
141,753

(5,184
)
23,360

127,891

(9,289
)
43,963

141,926

170,827

(5,644
)
  Net increase (decrease) in net assets resulting from unit transactions
(112,597
)
(6,336,827
)
(3,566,530
)
(10,724,175
)
(31,000,779
)
(1,993,488
)
(10,626,878
)
(18,171,823
)
(8,018,823
)
(1,503,638
)
  Net increase (decrease) in net assets
(43,334
)
1,948,663

(2,576,408
)
(7,736,998
)
(18,382,041
)
3,414,254

(1,788,252
)
(1,288,869
)
(4,109,161
)
890,310

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
855,299

45,772,218

14,743,972

108,493,198

207,416,296

14,913,656

64,936,858

110,930,197

61,818,346

10,079,964

  End of period
$
811,965

$
47,720,881

$
12,167,564

$
100,756,200

$
189,034,255

$
18,327,910

$
63,148,606

$
109,641,328

$
57,709,185

$
10,970,274

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Templeton Global Bond VIP Fund
Hartford Balanced HLS Fund
Hartford Total Return Bond HLS Fund
Hartford Capital Appreciation HLS Fund
Hartford Dividend and Growth HLS Fund
Hartford Healthcare HLS Fund
Hartford Global Growth HLS Fund
Hartford Disciplined Equity HLS Fund
Hartford Growth Opportunities HLS Fund
Hartford High Yield HLS Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(193,250
)
$
31,099

$
1,410,186

$
(619,332
)
$
(49,790
)
$
(1,119
)
$
(12,754
)
$
(70,585
)
$
(379,899
)
$
305,750

  Net realized gain (loss) on security transactions
(134,694
)
557,199

397,194

3,282,274

2,820,410

7,018

43,333

231,817

1,197,274

(26,101
)
  Net realized gain distributions
38,962

—

—

5,611,272

5,379,855

12,015

44,703

1,243,063

307,906

—

  Change in unrealized appreciation (depreciation) during the period
343,115

1,015,260

1,943,689

11,719,305

3,972,039

(2,474
)
177,704

722,560

5,051,697

130,968

  Net increase (decrease) in net assets resulting from operations
54,133

1,603,558

3,751,069

19,993,519

12,122,514

15,440

252,986

2,126,855

6,176,978

410,617

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
55,525

134,573

382,690

421,754

326,132

—

125

95,419

211,392

111,726

  Net transfers
569,958

530,736

8,806,704

(4,775,992
)
(3,815,393
)
309

(16,956
)
(248,945
)
(1,651,662
)
201,719

  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(1,996,341
)
(1,462,965
)
(16,242,597
)
(15,433,063
)
(12,184,212
)
(32,629
)
(116,319
)
(1,201,600
)
(3,631,260
)
(1,198,163
)
  Other transactions
23

10

650

(250
)
181

—

(1
)
664

293

4

  Death benefits
(286,400
)
(508,666
)
(2,783,188
)
(2,880,818
)
(2,377,200
)
(233
)
(10,279
)
(202,939
)
(457,256
)
(206,276
)
  Net annuity transactions
(3,441
)
(25,437
)
(71,164
)
(2,484
)
(66,996
)
—

(14,506
)
(76,521
)
(12,058
)
(6,554
)
  Net increase (decrease) in net assets resulting from unit transactions
(1,660,676
)
(1,331,749
)
(9,906,905
)
(22,670,853
)
(18,117,488
)
(32,553
)
(157,936
)
(1,633,922
)
(5,540,551
)
(1,097,544
)
  Net increase (decrease) in net assets
(1,606,543
)
271,809

(6,155,836
)
(2,677,334
)
(5,994,974
)
(17,113
)
95,050

492,933

636,427

(686,927
)
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
13,338,093

12,814,954

111,466,608

109,530,012

84,569,750

97,536

903,875

11,480,135

23,340,974

7,253,753

  End of period
$
11,731,550

$
13,086,763

$
105,310,772

$
106,852,678

$
78,574,776

$
80,423

$
998,925

$
11,973,068

$
23,977,401

$
6,566,826

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hartford International Opportunities HLS Fund
Hartford Small/Mid Cap Equity HLS Fund
Hartford MidCap HLS Fund
Hartford MidCap Value HLS Fund
Hartford Ultrashort Bond HLS Fund
Hartford Small Company HLS Fund
Hartford SmallCap Growth HLS Fund
Hartford Stock HLS Fund
Hartford U.S. Government Securities HLS Fund
Hartford Value HLS Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(18,444
)
$
(16,679
)
$
(10,524
)
$
(6,809
)
$
(538,236
)
$
(52,878
)
$
(21,980
)
$
(29,675
)
$
34,571

$
1,799

  Net realized gain (loss) on security transactions
333,580

(3,890
)
15,743

(4,651
)
74,075

(27,511
)
40,021

364,895

(13,262
)
83,103

  Net realized gain distributions
—

39,159

37,281

21,738

—

—

—

—

—

90,441

  Change in unrealized appreciation (depreciation) during the period
1,171,260

137,224

109,935

25,287

44,958

657,975

209,526

746,326

(25,781
)
(12,016
)
  Net increase (decrease) in net assets resulting from operations
1,486,396

155,814

152,435

35,565

(419,203
)
577,586

227,567

1,081,546

(4,472
)
163,327

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
114,359

650

—

—

294,997

11,754

29,892

18,260

28,892

48,300

  Net transfers
(13,827
)
(19,407
)
1,326

(75,900
)
2,733,766

(165,568
)
275,601

(55,312
)
270,740

(135,882
)
  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(847,521
)
(501,850
)
(40,899
)
(23,610
)
(9,928,491
)
(219,173
)
(123,250
)
(597,529
)
(425,181
)
(184,626
)
  Other transactions
80

—

(1
)
—

160

14

183

363

171

1

  Death benefits
(81,499
)
(47,849
)
—

(6,043
)
(1,227,693
)
(157,141
)
(32,990
)
(116,709
)
(40,580
)
(8,176
)
  Net annuity transactions
(3,647
)
—

(10,450
)
—

(106,681
)
(4,842
)
—

18,985

—

(916
)
  Net increase (decrease) in net assets resulting from unit transactions
(832,055
)
(568,456
)
(50,024
)
(105,553
)
(8,233,942
)
(534,956
)
149,436

(731,942
)
(165,958
)
(281,299
)
  Net increase (decrease) in net assets
654,341

(412,642
)
102,411

(69,988
)
(8,653,145
)
42,630

377,003

349,604

(170,430
)
(117,972
)
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
6,723,023

1,675,453

708,498

416,875

57,724,555

2,725,976

1,160,861

6,634,445

4,708,241

1,382,086

  End of period
$
7,377,364

$
1,262,811

$
810,909

$
346,887

$
49,071,410

$
2,768,606

$
1,537,864

$
6,984,049

$
4,537,811

$
1,264,114

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rational Dividend Capture VA Fund
Rational Insider Buying VA Fund
Lord Abbett Fundamental Equity Fund
Lord Abbett Calibrated Dividend Growth Fund
Lord Abbett Bond Debenture Fund
Lord Abbett Growth and Income Fund
MFS® Growth Fund
MFS® Global Equity Fund
MFS® Investors Trust Fund
MFS® Mid Cap Growth Fund
 
Sub-Account (1)
Sub-Account (2)
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
68,157

$
(37,622
)
$
4,338

$
1,358

$
250,520

$
(6,437
)
$
(475,595
)
$
(52,562
)
$
(546,387
)
$
(263,348
)
  Net realized gain (loss) on security transactions
(3,201
)
(189,557
)
20,165

47,832

133,059

128,022

2,367,565

314,791

2,604,239

494,178

  Net realized gain distributions
—

447,077

105,970

169,133

94,213

150,405

1,066,950

191,200

1,888,711

844,157

  Change in unrealized appreciation (depreciation) during the period
(167,125
)
301,812

25,899

276,682

217,676

(96,490
)
4,258,326

546,440

5,512,821

2,137,432

  Net increase (decrease) in net assets resulting from operations
(102,169
)
521,710

156,372

495,005

695,468

175,500

7,217,246

999,869

9,459,384

3,212,419

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
4,330

11,576

1,688

34,750

41,195

—

25,250

2,970

232,516

34,827

  Net transfers
74,136

(123,696
)
(50,898
)
(229,933
)
842,277

(6,605
)
(2,149,920
)
190,976

(1,918,234
)
83,205

  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(566,398
)
(653,482
)
(153,648
)
(512,923
)
(1,005,290
)
(331,475
)
(3,386,896
)
(662,923
)
(6,388,773
)
(1,981,172
)
  Other transactions
1

2

4

1

63

55

(7
)
2

3,654

36

  Death benefits
162

(4,555
)
—

(8,459
)
(205,344
)
(16,084
)
(299,042
)
(77,711
)
(981,898
)
(390,221
)
  Net annuity transactions
1,420

594

—

—

(1,832
)
—

171,502

22,679

91,374

(7,062
)
  Net increase (decrease) in net assets resulting from unit transactions
(486,349
)
(769,561
)
(202,854
)
(716,564
)
(328,931
)
(354,109
)
(5,639,113
)
(524,007
)
(8,961,361
)
(2,260,387
)
  Net increase (decrease) in net assets
(588,518
)
(247,851
)
(46,482
)
(221,559
)
366,537

(178,609
)
1,578,133

475,862

498,023

952,032

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
3,991,887

3,742,389

1,432,057

3,283,453

9,315,754

1,754,696

26,796,913

4,771,582

49,243,607

14,169,737

  End of period
$
3,403,369

$
3,494,538

$
1,385,575

$
3,061,894

$
9,682,291

$
1,576,087

$
28,375,046

$
5,247,444

$
49,741,630

$
15,121,769

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MFS® New Discovery Fund
MFS® Total Return Fund
MFS® Value Fund
MFS® Total Return Bond Series
MFS® Research Fund
MFS® High Yield Portfolio
BlackRock Global Allocation V.I. Fund
BlackRock Global Opportunities V.I. Fund
BlackRock Large Cap Focus Growth V.I. Fund
BlackRock Equity Dividend V.I. Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account (3)
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(552,168
)
$
768,384

$
101,228

$
1,257,420

$
(20,227
)
$
1,376,235

$
1,392

$
(400
)
$
(8,843
)
$
5,826

  Net realized gain (loss) on security transactions
900,994

4,596,648

3,572,860

420,657

165,166

(169,720
)
(21
)
2,092

40,913

25,981

  Net realized gain distributions
569,214

4,040,505

2,429,519

—

263,595

—

2,698

3,808

60,068

36,075

  Change in unrealized appreciation (depreciation) during the period
5,724,964

5,464,497

2,857,899

404,717

342,129

221,392

22,158

2,158

12,094

33,807

  Net increase (decrease) in net assets resulting from operations
6,643,004

14,870,034

8,961,506

2,082,794

750,663

1,427,907

26,227

7,658

104,232

101,689

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
97,831

1,110,062

298,774

170,464

7,548

142,175

—

—

—

280

  Net transfers
(1,072,631
)
(657,157
)
(1,609,297
)
5,206,815

229,234

1,516,180

10,251

(11,242
)
(112,192
)
(41,904
)
  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(4,003,002
)
(21,844,433
)
(7,909,263
)
(10,435,605
)
(431,923
)
(4,252,984
)
(2,929
)
(2,488
)
(52,306
)
(68,863
)
  Other transactions
358

2,046

2,045

1,585

259

929

—

—

—

—

  Death benefits
(571,563
)
(3,651,595
)
(1,142,709
)
(1,344,703
)
(82,707
)
(596,660
)
—

—

(19,763
)
(1,498
)
  Net annuity transactions
(35,732
)
538,374

52,706

202,147

(6,106
)
379,020

—

—

—

—

  Net increase (decrease) in net assets resulting from unit transactions
(5,584,739
)
(24,502,703
)
(10,307,744
)
(6,199,297
)
(283,695
)
(2,811,340
)
7,322

(13,730
)
(184,261
)
(111,985
)
  Net increase (decrease) in net assets
1,058,265

(9,632,669
)
(1,346,238
)
(4,116,503
)
466,968

(1,383,433
)
33,549

(6,072
)
(80,029
)
(10,296
)
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
30,037,343

155,634,755

63,152,998

78,599,528

3,649,101

30,652,921

200,285

36,378

443,860

705,620

  End of period
$
31,095,608

$
146,002,086

$
61,806,760

$
74,483,025

$
4,116,069

$
29,269,488

$
233,834

$
30,306

$
363,831

$
695,324

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Morgan Stanley VIF Core Plus Fixed Income Portfolio
Morgan Stanley VIF Growth Portfolio
Morgan Stanley VIF Mid Cap Growth Portfolio
Invesco V.I. American Value Fund
Morgan Stanley Mid Cap Growth Portfolio
BlackRock Capital Appreciation V.I. Fund
Columbia Variable Portfolio - Asset Allocation Fund
Columbia Variable Portfolio - Dividend Opportunity Fund
Columbia Variable Portfolio - Income Opportunities Fund
Columbia Variable Portfolio - Mid Cap Growth Fund
 
Sub-Account (4)
Sub-Account (5)
Sub-Account (6)
Sub-Account
Sub-Account (7)
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
539

$
(5,306
)
$
(22,877
)
$
(9,352
)
$
(1,521
)
$
(3,894
)
$
(7,869
)
$
(157,762
)
$
238,727

$
(153,147
)
  Net realized gain (loss) on security transactions
91

7,750

(5,003
)
35,906

(2,810
)
20,372

2,084

535,445

(170,029
)
408,906

  Net realized gain distributions
—

23,552

—

12,254

—

58,416

1,748

—

—

—

  Change in unrealized appreciation (depreciation) during the period
1,152

67,675

474,022

43,175

36,544

79,015

239,139

451,678

184,347

1,050,523

  Net increase (decrease) in net assets resulting from operations
1,782

93,671

446,142

81,983

32,213

153,909

235,102

829,361

253,045

1,306,282

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
—

1,400

13,593

11,046

—

—

—

2,497

408

224

  Net transfers
—

(6,586
)
(60,604
)
239,887

(142,281
)
(112,205
)
(35,583
)
(133,267
)
108,746

(165,948
)
  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(682
)
(55,221
)
(153,162
)
(177,405
)
(16,605
)
(61,764
)
(162,730
)
(904,597
)
(674,666
)
(574,007
)
  Other transactions
—

—

153

(152
)
2

—

1

372

52

269

  Death benefits
—

—

(42,028
)
(7,355
)
—

—

(34,071
)
(105,969
)
(185,555
)
(173,113
)
  Net annuity transactions
—

—

—

—

—

—

(1,184
)
19,332

13,283

(3,951
)
  Net increase (decrease) in net assets resulting from unit transactions
(682
)
(60,407
)
(242,048
)
66,021

(158,884
)
(173,969
)
(233,567
)
(1,121,632
)
(737,732
)
(916,526
)
  Net increase (decrease) in net assets
1,100

33,264

204,094

148,004

(126,671
)
(20,060
)
1,535

(292,271
)
(484,687
)
389,756

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
43,794

247,562

1,299,458

950,108

126,671

559,679

1,929,599

7,528,292

6,004,460

6,786,779

  End of period
$
44,894

$
280,826

$
1,503,552

$
1,098,112

$
—

$
539,619

$
1,931,134

$
7,236,021

$
5,519,773

$
7,176,535

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oppenheimer Capital Appreciation Fund/VA
Oppenheimer Global Fund/VA
Oppenheimer Main Street Fund®/VA
Oppenheimer Main Street Small Cap Fund/VA
Oppenheimer Equity Income Fund/VA
Putnam VT Diversified Income Fund
Putnam VT Global Asset Allocation Fund
Putnam VT Growth Opportunities Fund
Putnam VT International Value Fund
Putnam VT International Equity Fund
 
Sub-Account
Sub-Account
Sub-Account (8)
Sub-Account
Sub-Account (9)
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(8,574
)
$
(45,038
)
$
(1,647
)
$
(39,324
)
$
4,621

$
495,660

$
(2,696
)
$
(11,299
)
$
(108
)
$
984

  Net realized gain (loss) on security transactions
7,762

266,185

102,915

293,047

32,490

(224,371
)
41,993

83,560

3,172

10,215

  Net realized gain distributions
51,556

—

25,649

232,621

—

—

24,347

27,032

—

—

  Change in unrealized appreciation (depreciation) during the period
69,692

1,242,259

27,365

(262
)
(30,257
)
373,291

21,224

411,278

6,795

56,949

  Net increase (decrease) in net assets resulting from operations
120,436

1,463,406

154,282

486,082

6,854

644,580

84,868

510,571

9,859

68,148

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
325

15,285

34,140

15,940

—

99,164

—

2,717

—

30

  Net transfers
7,150

102,032

64,643

(309,908
)
17,483

363,699

(10,230
)
(314,893
)
(72,701
)
27,709

  Net interfund transfers due to corporate actions
—

—

277,472

—

(277,472
)
—

—

—

—

—

  Surrenders for benefit payments and fees
(141,974
)
(572,665
)
(757,280
)
(537,524
)
(3,124
)
(1,667,138
)
(157,987
)
(201,397
)
(13,240
)
(44,794
)
  Other transactions
43

(1
)
(4
)
126

—

(11
)
39

1

—

—

  Death benefits
—

(86,315
)
(28,435
)
(109,112
)
—

(293,322
)
—

(2,024
)
—

(21,307
)
  Net annuity transactions
(51,327
)
—

13,736

—

(28,005
)
—

—

—

(1,649
)
—

  Net increase (decrease) in net assets resulting from unit transactions
(185,783
)
(541,664
)
(395,728
)
(940,478
)
(291,118
)
(1,497,608
)
(168,178
)
(515,596
)
(87,590
)
(38,362
)
  Net increase (decrease) in net assets
(65,347
)
921,742

(241,446
)
(454,396
)
(284,264
)
(853,028
)
(83,310
)
(5,025
)
(77,731
)
29,786

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
543,614

4,470,280

1,126,233

4,535,693

284,264

12,444,852

694,957

1,939,236

114,925

294,529

  End of period
$
478,267

$
5,392,022

$
884,787

$
4,081,297

$
—

$
11,591,824

$
611,647

$
1,934,211

$
37,194

$
324,315

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Putnam VT Small Cap Value Fund
JPMorgan Insurance Trust Core Bond Portfolio
JPMorgan Insurance Trust U.S. Equity Portfolio
JPMorgan Insurance Trust Intrepid Mid Cap Portfolio
JPMorgan Insurance Trust Mid Cap Value Portfolio
Putnam VT Equity Income Fund
PIMCO All Asset Fund
PIMCO StocksPLUS Global Portfolio
PIMCO Global Multi-Asset Managed Allocation Portfolio
Jennison 20/20 Focus Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account (10)
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(3,251
)
$
354,903

$
(33,229
)
$
(34,307
)
$
(29,068
)
$
1,518

$
5,431

$
10,907

$
207

$
(699
)
  Net realized gain (loss) on security transactions
(4,048
)
(66,247
)
436,476

298,411

(27,308
)
1,041

(154
)
(21,627
)
(50
)
13,072

  Net realized gain distributions
14,624

—

47,239

—

162,538

4,227

—

—

—

—

  Change in unrealized appreciation (depreciation) during the period
8,519

394,390

440,618

(23,534
)
300,063

16,760

11,351

93,704

1,382

(3,077
)
  Net increase (decrease) in net assets resulting from operations
15,844

683,046

891,104

240,570

406,225

23,546

16,628

82,984

1,539

9,296

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
10,825

77,963

19,092

482

3,776

—

—

—

—

—

  Net transfers
103,750

1,671,187

(310,128
)
(5,610,173
)
35,531

(133
)
(194
)
(70,056
)
46,791

—

  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(142,529
)
(4,540,506
)
(662,290
)
(320,012
)
(675,770
)
(4,546
)
(2,130
)
(53,438
)
(15,409
)
(6,890
)
  Other transactions
—

1,292

167

46

163

(1
)
(1
)
—

—

—

  Death benefits
—

(740,271
)
(73,992
)
(24,448
)
(74,079
)
—

(2,014
)
—

—

(23,845
)
  Net annuity transactions
—

(67,754
)
(10,396
)
(16,163
)
(34,385
)
—

—

—

—

—

  Net increase (decrease) in net assets resulting from unit transactions
(27,954
)
(3,598,089
)
(1,037,547
)
(5,970,268
)
(744,764
)
(4,680
)
(4,339
)
(123,494
)
31,382

(30,735
)
  Net increase (decrease) in net assets
(12,110
)
(2,915,043
)
(146,443
)
(5,729,698
)
(338,539
)
18,866

12,289

(40,510
)
32,921

(21,439
)
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
276,555

35,591,635

4,941,254

5,729,698

3,791,920

133,076

134,456

438,441

8,191

54,270

  End of period
$
264,445

$
32,676,592

$
4,794,811

$
—

$
3,453,381

$
151,942

$
146,745

$
397,931

$
41,112

$
32,831

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 


SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jennison Fund
Prudential Value Portfolio
Prudential SP International Growth Portfolio
ClearBridge Variable Dividend Strategy Portfolio
Western Asset Variable Global High Yield Bond Portfolio
ClearBridge Variable Large Cap Value Portfolio
Invesco V.I. Growth and Income Fund
Invesco V.I. Comstock Fund
Invesco V.I. American Franchise Fund
Invesco V.I. Mid Cap Growth Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(2,749
)
$
(414
)
$
(174
)
$
30

$
1,369

$
(700
)
$
(3,504
)
$
(510
)
$
(311,079
)
$
(53,147
)
  Net realized gain (loss) on security transactions
6,922

9,957

756

172

(264
)
11,201

58,402

18,315

1,127,139

33,597

  Net realized gain distributions
—

—

—

—

—

19,074

54,617

9,320

1,338,649

180,021

  Change in unrealized appreciation (depreciation) during the period
39,611

(5,979
)
2,930

3,528

1,290

54,712

44,747

4,030

1,536,414

366,631

  Net increase (decrease) in net assets resulting from operations
43,784

3,564

3,512

3,730

2,395

84,287

154,262

31,155

3,691,123

527,102

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
—

—

—

—

—

—

2,120

—

59,164

1,861

  Net transfers
(1,287
)
—

—

466

587

5,642

(119,333
)
(269
)
386,855

94,512

  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(3,405
)
(8,221
)
(5,667
)
(654
)
(1,532
)
(77,262
)
(217,376
)
(15,803
)
(2,084,703
)
(477,587
)
  Other transactions
1

(2
)
—

—

—

—

—

—

(63
)
1

  Death benefits
—

(20,349
)
—

—

—

(3,174
)
(28
)
—

(140,175
)
(45,759
)
  Net annuity transactions
(7,259
)
—

—

—

—

(5,390
)
—

—

26,332

(11,398
)
  Net increase (decrease) in net assets resulting from unit transactions
(11,950
)
(28,572
)
(5,667
)
(188
)
(945
)
(80,184
)
(334,617
)
(16,072
)
(1,752,590
)
(438,370
)
  Net increase (decrease) in net assets
31,834

(25,008
)
(2,155
)
3,542

1,450

4,103

(180,355
)
15,083

1,938,533

88,732

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
133,406

44,591

12,396

21,280

34,023

662,586

1,494,723

218,390

15,346,497

2,687,446

  End of period
$
165,240

$
19,583

$
10,241

$
24,822

$
35,473

$
666,689

$
1,314,368

$
233,473

$
17,285,030

$
2,776,178

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 


SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wells Fargo VT Index Asset Allocation Fund
Wells Fargo VT International Equity Fund
Wells Fargo VT Small Cap Growth Fund
Wells Fargo VT Discovery Fund
Wells Fargo VT Opportunity Fund
HIMCO VIT Index Fund
HIMCO VIT Portfolio Diversifier Fund
HIMCO VIT American Funds Asset Allocation Fund
HIMCO VIT American Funds Blue Chip Income and Growth Fund
HIMCO VIT American Funds Bond Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account (11)
Sub-Account (12)
Sub-Account (13)
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(290
)
$
12,967

$
(15,297
)
$
(112
)
$
(43,324
)
$
46,946

$
104,317

$
(31,044
)
$
77,826

$
312,631

  Net realized gain (loss) on security transactions
371

(1,523
)
27,018

39

404,139

173,768

(525,085
)
(1,873,726
)
(1,839,621
)
(814,014
)
  Net realized gain distributions
1,133

—

26,197

435

542,134

256,549

—

2,381,898

1,772,763

73,738

  Change in unrealized appreciation (depreciation) during the period
1,392

173,702

151,796

1,629

260,445

368,820

(981,979
)
741,564

454,850

857,631

  Net increase (decrease) in net assets resulting from operations
2,606

185,146

189,714

1,991

1,163,394

846,083

(1,402,747
)
1,218,692

465,818

429,986

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
10

12,583

1,214

—

21,646

15,672

64,891

975

6,000

76,015

  Net transfers
—

(8,122
)
4,171

—

(511,686
)
(237,083
)
3,060,729

(9,027,683
)
(5,270,640
)
(20,059,992
)
  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(697
)
(129,882
)
(115,787
)
(58
)
(850,712
)
(690,640
)
(3,947,394
)
(2,914,818
)
(845,403
)
(2,216,671
)
  Other transactions
1

504

—

—

—

4

465

(308
)
2

(272
)
  Death benefits
—

(16,884
)
(10,139
)
—

(168,135
)
(60,577
)
(99,551
)
(225,626
)
(86,075
)
(310,785
)
  Net annuity transactions
—

8,943

—

—

—

—

—

(45,899
)
(104,456
)
(45,211
)
  Net increase (decrease) in net assets resulting from unit transactions
(686
)
(132,858
)
(120,541
)
(58
)
(1,508,887
)
(972,624
)
(920,860
)
(12,213,359
)
(6,300,572
)
(22,556,916
)
  Net increase (decrease) in net assets
1,920

52,288

69,173

1,933

(345,493
)
(126,541
)
(2,323,607
)
(10,994,667
)
(5,834,754
)
(22,126,930
)
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
25,604

884,469

841,126

7,307

6,934,766

4,462,379

35,259,019

10,994,667

5,834,754

22,126,930

  End of period
$
27,524

$
936,757

$
910,299

$
9,240

$
6,589,273

$
4,335,838

$
32,935,412

$
—

$
—

$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
HIMCO VIT American Funds Global Bond Fund
HIMCO VIT American Funds Global Growth and Income Fund
HIMCO VIT American Funds Global Growth Fund
HIMCO VIT American Funds Global Small Capitalization Fund
HIMCO VIT American Funds Growth Fund
HIMCO VIT American Funds Growth-Income Fund
HIMCO VIT American Funds International Fund
HIMCO VIT American Funds New World Fund
MFS® Core Equity Portfolio
MFS® Massachusetts Investors Growth Stock Portfolio
 
Sub-Account (14)
Sub-Account (15)
Sub-Account (16)
Sub-Account (17)
Sub-Account (18)
Sub-Account (19)
Sub-Account (20)
Sub-Account (21)
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(19,629
)
$
1,152

$
(17,745
)
$
(85,614
)
$
(398,399
)
$
102,513

$
(70,763
)
$
(45,491
)
$
(45,091
)
$
(84,187
)
  Net realized gain (loss) on security transactions
(36,478
)
(2,640,356
)
(531,916
)
(1,924,178
)
(20,772,670
)
(10,706,797
)
(5,010,733
)
372,314

20,836

(389
)
  Net realized gain distributions
—

3,538,457

1,020,326

2,382,733

21,820,667

10,793,152

8,504,782

326,085

278,726

339,583

  Change in unrealized appreciation (depreciation) during the period
140,245

694,387

225,228

884,389

9,102,898

3,621,551

3,205,499

302,526

734,233

1,315,639

  Net increase (decrease) in net assets resulting from operations
84,138

1,593,640

695,893

1,257,330

9,752,496

3,810,419

6,628,785

955,434

988,704

1,570,646

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
7,521

18,407

1,235

34,469

158,851

32,341

212,937

22,264

5,982

40,005

  Net transfers
(1,861,317
)
(8,191,970
)
(2,865,480
)
(6,863,073
)
(48,403,412
)
(25,549,472
)
(29,131,634
)
(4,178,333
)
(79,379
)
(185,488
)
  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(243,593
)
(1,041,164
)
(265,093
)
(1,025,236
)
(6,030,853
)
(2,239,336
)
(3,094,967
)
(672,250
)
(437,798
)
(759,528
)
  Other transactions
100

24

129

(367
)
(1,122
)
(135
)
26

—

177

(2
)
  Death benefits
(18,391
)
(185,371
)
(36,531
)
(115,412
)
(580,425
)
(310,007
)
(528,599
)
(61,333
)
(14,078
)
(159,608
)
  Net annuity transactions
(15,773
)
(76,950
)
(2,473
)
(14,331
)
(121,934
)
(293,155
)
(46,382
)
(20,743
)
(48,340
)
69,422

  Net increase (decrease) in net assets resulting from unit transactions
(2,131,453
)
(9,477,024
)
(3,168,213
)
(7,983,950
)
(54,978,895
)
(28,359,764
)
(32,588,619
)
(4,910,395
)
(573,436
)
(995,199
)
  Net increase (decrease) in net assets
(2,047,315
)
(7,883,384
)
(2,472,320
)
(6,726,620
)
(45,226,399
)
(24,549,345
)
(25,959,834
)
(3,954,961
)
415,268

575,447

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
2,047,315

7,883,384

2,472,320

6,726,620

45,226,399

24,549,345

25,959,834

3,954,961

4,652,446

6,458,277

  End of period
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
5,067,714

$
7,033,724

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (concluded)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MFS® Research International Portfolio
Columbia Variable Portfolio - Large Cap Growth Fund
Columbia Variable Portfolio - Select International Equity Fund
Variable Portfolio - Loomis Sayles Growth Fund






 
Sub-Account
Sub-Account
Sub-Account
Sub-Account






 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
5,059

$
(156,457
)
$
(15,444
)
$
(113,201
)






  Net realized gain (loss) on security transactions
28,106

190,682

87,672

152,281







  Net realized gain distributions
—

—

—

—







  Change in unrealized appreciation (depreciation) during the period
2,221,814

1,610,467

1,085,973

1,346,874







  Net increase (decrease) in net assets resulting from operations
2,254,979

1,644,692

1,158,201

1,385,954







 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
139,288

9,504

1,554

—







  Net transfers
(580,477
)
(151,919
)
(113,745
)
(124,408
)






  Net interfund transfers due to corporate actions
—

—

—

—







  Surrenders for benefit payments and fees
(1,417,865
)
(520,250
)
(459,646
)
(383,136
)






  Other transactions
1,116

2

281

291







  Death benefits
(243,626
)
(86,363
)
(129,471
)
(77,526
)






  Net annuity transactions
35,079

(16,429
)
(15,388
)
36,823







  Net increase (decrease) in net assets resulting from unit transactions
(2,066,485
)
(765,455
)
(716,415
)
(547,956
)






  Net increase (decrease) in net assets
188,494

879,237

441,786

837,998







 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
9,488,547

6,752,146

5,001,617

4,794,952







  End of period
$
9,677,041

$
7,631,383

$
5,443,403

$
5,632,950







 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

 
 
 
 
 
 
 
 

(1) Formerly Catalyst Dividend Capture VA Fund. Change effective May 1, 2017.
(2) Formerly Catalyst Insider Buying VA Fund. Change effective May 1, 2017.
(3) Formerly BlackRock Large Cap Growth V.I. Fund. Change effective June 12, 2017.
(4) Formerly UIF Core Plus Fixed Income Portfolio. Change effective May 1, 2017.
(5) Formerly UIF Growth Portfolio. Change effective May 1, 2017.
(6) Formerly UIF Mid Cap Growth Portfolio. Change effective May 1, 2017.
(7) Liquidated as of September 29, 2017.
(8) Merged with Oppenheimer Equity Income Fund/VA . Change effective April 28, 2017.
(9) Merged with Oppenheimer Main Street Fund®/VA . Change effective April 28, 2017.
(10) Liquidated as of May 19, 2017.
(11) Liquidated as of November 10, 2017.
(12) Liquidated as of November 10, 2017.
(13) Liquidated as of November 10, 2017.
(14) Liquidated as of November 10, 2017.
(15) Liquidated as of November 10, 2017.
(16) Liquidated as of November 10, 2017.
(17) Liquidated as of November 10, 2017.
(18) Liquidated as of November 10, 2017.
(19) Liquidated as of November 10, 2017.
(20) Liquidated as of November 10, 2017.
(21) Liquidated as of November 10, 2017.



SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
American Century VP Value Fund
American Century VP Growth Fund
AB VPS Balanced Wealth Strategy Portfolio
AB VPS International Value Portfolio
AB VPS Small/Mid Cap Value Portfolio
AB VPS Value Portfolio
AB VPS International Growth Portfolio
Invesco V.I. Value Opportunities Fund
Invesco V.I. Core Equity Fund
Invesco V.I. Government Securities Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
18,003

$
(534
)
$
19,040

$
(28,486
)
$
(20,992
)
$
(30
)
$
(10,703
)
$
(222,692
)
$
(365,940
)
$
137,347

  Net realized gain (loss) on security transactions
191,753

1,052

(60,925
)
(36,008
)
225

3,351

9,872

(711,655
)
1,281,982

(681,127
)
  Net realized gain distributions
—

281

309,991

—

98,365

—

—

4,443,014

2,205,108

—

  Change in unrealized appreciation (depreciation) during the period
163,998

2,473

(127,234
)
(68,351
)
284,741

18,012

(53,111
)
(1,268,918
)
(516,027
)
189,947

  Net increase (decrease) in net assets resulting from operations
373,754

3,272

140,872

(132,845
)
362,339

21,333

(53,942
)
2,239,749

2,605,123

(353,833
)
 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
10,214

1,950

3,997

31,543

15,156

—

—

22,495

141,851

245,349

  Net transfers
(423,916
)
(1,615
)
106,730

(33,468
)
325,217

(5,679
)
5,156

(146,717
)
(1,168,512
)
5,557,127

  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(125,013
)
(2,553
)
(717,631
)
(891,227
)
(179,174
)
(15,666
)
(93,108
)
(1,703,834
)
(4,825,471
)
(15,736,552
)
  Other transactions
—

—

—

(1
)
29

(1
)
—

218

(250
)
2,413

  Death benefits
(26,134
)
—

(80,395
)
(76,435
)
(21,465
)
—

(1,607
)
(214,602
)
(793,898
)
(2,538,104
)
  Net annuity transactions
—

—

—

(25,188
)
—

(6,484
)
—

26,060

27,105

159,067

  Net increase (decrease) in net assets resulting from unit transactions
(564,849
)
(2,218
)
(687,299
)
(994,776
)
139,763

(27,830
)
(89,559
)
(2,016,380
)
(6,619,175
)
(12,310,700
)
  Net increase (decrease) in net assets
(191,095
)
1,054

(546,427
)
(1,127,621
)
502,102

(6,497
)
(143,501
)
223,369

(4,014,052
)
(12,664,533
)
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
2,124,718

80,675

4,904,242

5,971,620

1,563,766

247,525

685,378

16,023,213

35,916,480

107,843,967

  End of period
$
1,933,623

$
81,729

$
4,357,815

$
4,843,999

$
2,065,868

$
241,028

$
541,877

$
16,246,582

$
31,902,428

$
95,179,434

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Invesco V.I. High Yield Fund
Invesco V.I. International Growth Fund
Invesco V.I. Mid Cap Core Equity Fund
Invesco V.I. Small Cap Equity Fund
Invesco V.I. Balanced Risk Allocation Fund
Invesco V.I. Diversified Dividend Fund
Invesco V.I. Government Money Market Fund
American Century VP Mid Cap Value Fund
American Funds Global Bond Fund
American Funds Global Growth and Income Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
9,260

$
(114,250
)
$
(596,504
)
$
(416,927
)
$
(27,415
)
$
(40
)
$
(902,742
)
$
1,171

$
(352,788
)
$
(3,022
)
  Net realized gain (loss) on security transactions
(17,834
)
1,517,008

(89,579
)
35,369

(57,104
)
207

—

2,365

37,725

974,541

  Net realized gain distributions
—

—

2,148,745

1,681,641

—

—

—

6,590

50,445

—

  Change in unrealized appreciation (depreciation) during the period
55,083

(2,155,297
)
2,066,223

914,735

279,674

681

—

16,586

604,738

1,258,540

  Net increase (decrease) in net assets resulting from operations
46,509

(752,539
)
3,528,885

2,214,818

195,155

848

(902,742
)
26,712

340,120

2,230,059

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
—

107,405

311,131

44,258

15,803

—

907,320

108

87,280

147,177

  Net transfers
3,038

85,044

(11,596
)
(196,721
)
105,200

—

37,195,573

(12,821
)
(239,927
)
(897,860
)
  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(169,671
)
(5,429,275
)
(4,602,275
)
(3,308,178
)
(517,014
)
(503
)
(31,781,103
)
(2,089
)
(3,413,141
)
(5,589,635
)
  Other transactions
(2
)
3,378

(513
)
(44
)
—

—

1,780

1

1,376

3,205

  Death benefits
—

(671,829
)
(503,111
)
(452,154
)
(80,723
)
—

(2,502,242
)
—

(368,973
)
(664,130
)
  Net annuity transactions
(459
)
164

(3,714
)
(11,020
)
—

—

39,915

—

4,299

78,067

  Net increase (decrease) in net assets resulting from unit transactions
(167,094
)
(5,905,113
)
(4,810,078
)
(3,923,859
)
(476,734
)
(503
)
3,861,243

(14,801
)
(3,929,086
)
(6,923,176
)
  Net increase (decrease) in net assets
(120,585
)
(6,657,652
)
(1,281,193
)
(1,709,041
)
(281,579
)
345

2,958,501

11,911

(3,588,966
)
(4,693,117
)
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
700,922

40,865,876

34,142,445

25,063,705

2,128,861

7,294

53,237,584

128,925

28,150,075

45,245,756

  End of period
$
580,337

$
34,208,224

$
32,861,252

$
23,354,664

$
1,847,282

$
7,639

$
56,196,085

$
140,836

$
24,561,109

$
40,552,639

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 
SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
American Funds Asset Allocation Fund
American Funds Blue Chip Income and Growth Fund
American Funds Bond Fund
American Funds Global Growth Fund
American Funds Growth Fund
American Funds Growth-Income Fund
American Funds International Fund
American Funds New World Fund
American Funds Global Small Capitalization Fund
Columbia Variable Portfolio - Small Company Growth Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(418,570
)
$
115,166

$
(143,169
)
$
(440,435
)
$
(4,037,438
)
$
(1,316,892
)
$
(356,666
)
$
(324,815
)
$
(525,468
)
$
(91,122
)
  Net realized gain (loss) on security transactions
6,167,284

3,023,646

(21,028
)
1,158,763

8,684,449

8,699,960

(212,475
)
295,707

571,436

67,892

  Net realized gain distributions
3,732,613

6,499,276

465,674

4,022,154

34,390,998

38,029,453

6,933,381

—

6,232,672

840,565

  Change in unrealized appreciation (depreciation) during the period
1,421,261

2,563,175

1,708,887

(5,660,040
)
(12,552,785
)
(14,775,239
)
(5,012,465
)
988,870

(6,335,431
)
(402,414
)
  Net increase (decrease) in net assets resulting from operations
10,902,588

12,201,263

2,010,364

(919,558
)
26,485,224

30,637,282

1,351,775

959,762

(56,791
)
414,921

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
682,137

206,217

437,251

123,748

1,556,679

963,610

190,568

195,625

174,864

2,506

  Net transfers
2,379,739

5,686,986

1,760,221

(3,962,416
)
(10,385,731
)
(6,815,114
)
(769,566
)
(738,934
)
(974,709
)
(24,072
)
  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(19,419,592
)
(9,790,842
)
(19,580,650
)
(5,579,611
)
(46,798,099
)
(45,017,583
)
(10,109,602
)
(3,797,125
)
(4,635,930
)
(394,518
)
  Other transactions
2,511

5,830

27,039

(425
)
2,739

(1,709
)
(128
)
1,188

93

33

  Death benefits
(3,775,215
)
(2,295,433
)
(3,382,500
)
(1,122,780
)
(8,371,267
)
(7,041,073
)
(1,790,932
)
(487,216
)
(581,902
)
(62,276
)
  Net annuity transactions
30,909

(14,186
)
95,159

(55,779
)
984,233

641,018

114,022

122,869

(3,279
)
(6,581
)
  Net increase (decrease) in net assets resulting from unit transactions
(20,099,511
)
(6,201,428
)
(20,643,480
)
(10,597,263
)
(63,011,446
)
(57,270,851
)
(12,365,638
)
(4,703,593
)
(6,020,863
)
(484,908
)
  Net increase (decrease) in net assets
(9,196,923
)
5,999,835

(18,633,116
)
(11,516,821
)
(36,526,222
)
(26,633,569
)
(11,013,863
)
(3,743,831
)
(6,077,654
)
(69,987
)
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
157,779,281

78,142,230

142,174,433

55,461,338

412,477,546

363,762,709

$
86,358,475

$
32,198,956

$
37,224,562

$
4,404,444

  End of period
$
148,582,358

$
84,142,065

$
123,541,317

$
43,944,517

$
375,951,324

$
337,129,140

$
75,344,612

$
28,455,125

$
31,146,908

$
4,334,457

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wells Fargo VT Omega Growth Fund
Fidelity® VIP Growth Portfolio
Fidelity® VIP Contrafund® Portfolio
Fidelity® VIP Mid Cap Portfolio
Fidelity® VIP Value Strategies Portfolio
Fidelity® VIP Dynamic Capital Appreciation Portfolio
Fidelity® VIP Strategic Income Portfolio
Franklin Rising Dividends VIP Fund
Franklin Income VIP Fund
Franklin Large Cap Growth VIP Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(12,827
)
$
(26,331
)
$
(157,309
)
$
(172,152
)
$
(5,601
)
$
(4,316
)
$
3,024

$
(599,898
)
$
11,838,674

$
(437,127
)
  Net realized gain (loss) on security transactions
(31,355
)
400

1,055,805

308,385

51,772

(17
)
(2,739
)
6,097,992

(2,806,671
)
7,433

  Net realized gain distributions
40,421

179,290

1,475,838

898,216

—

14,187

—

19,762,430

—

377,024

  Change in unrealized appreciation (depreciation) during the period
(9,082
)
(166,521
)
(1,455,818
)
208,814

(7,945
)
(10,633
)
7,049

(3,749,728
)
32,267,885

(1,068,296
)
  Net increase (decrease) in net assets resulting from operations
(12,843
)
(13,162
)
918,516

1,243,263

38,226

(779
)
7,334

21,510,796

41,299,888

(1,120,966
)
 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
—

—

109,113

43,660

650

40

—

378,324

1,333,556

60,055

  Net transfers
(21,846
)
108,175

(733,767
)
(168,874
)
(62,781
)
20,709

54

1,389,048

(7,595,686
)
(1,732,808
)
  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(82,998
)
(143,477
)
(2,983,398
)
(2,156,549
)
(45,486
)
(76,396
)
(4,965
)
(21,727,930
)
(52,392,302
)
(3,140,483
)
  Other transactions
1

(3
)
(1
)
(21
)
—

—

—

3,462

8,986

1,745

  Death benefits
(90,141
)
(697
)
(277,234
)
(157,646
)
(6,252
)
—

(18,661
)
(3,216,967
)
(9,042,444
)
(413,659
)
  Net annuity transactions
—

(20,244
)
(26,265
)
(919
)
—

4,907

—

421,594

757,545

20,138

  Net increase (decrease) in net assets resulting from unit transactions
(194,984
)
(56,246
)
(3,911,552
)
(2,440,349
)
(113,869
)
(50,740
)
(23,572
)
(22,752,469
)
(66,930,345
)
(5,205,012
)
  Net increase (decrease) in net assets
(207,827
)
(69,408
)
(2,993,036
)
(1,197,086
)
(75,643
)
(51,519
)
(16,238
)
(1,241,673
)
(25,630,457
)
(6,325,978
)
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
866,603

1,819,855

18,538,795

14,496,070

657,526

388,822

126,048

164,590,602

388,173,394

27,760,346

  End of period
$
658,776

$
1,750,447

$
15,545,759

$
13,298,984

$
581,883

$
337,303

$
109,810

$
163,348,929

$
362,542,937

$
21,434,368

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 


SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Franklin Global Real Estate VIP Fund
Franklin Small-Mid Cap Growth VIP Fund
Franklin Small Cap Value VIP Fund
Franklin Strategic Income VIP Fund
Franklin Mutual Shares VIP Fund
Templeton Developing Markets VIP Fund
Templeton Foreign VIP Fund
Templeton Growth VIP Fund
Franklin Mutual Global Discovery VIP Fund
Franklin Flex Cap Growth VIP Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(2,985
)
$
(884,975
)
$
(121,582
)
$
2,031,619

$
442,453

$
(125,035
)
$
139,297

$
328,482

$
(113,483
)
$
(205,802
)
  Net realized gain (loss) on security transactions
1

(2,190,424
)
(75,812
)
(3,359,683
)
6,584,539

(1,512,390
)
(1,295,756
)
1,400,287

(236,719
)
(1,531,127
)
  Net realized gain distributions
—

5,631,113

1,878,614

—

16,757,570

—

1,181,917

4,456,548

4,747,795

1,612,358

  Change in unrealized appreciation (depreciation) during the period
(8,370
)
(1,606,732
)
1,381,067

8,325,389

3,127,602

3,722,248

3,366,852

1,740,379

1,341,796

(527,234
)
  Net increase (decrease) in net assets resulting from operations
(11,354
)
948,982

3,062,287

6,997,325

26,912,164

2,084,823

3,392,310

7,925,696

5,739,389

(651,805
)
 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
46,004

140,353

40,702

471,716

830,876

46,249

212,222

420,024

221,841

37,448

  Net transfers
58,763

(1,185,775
)
1,833,334

(1,616,957
)
(6,796,358
)
168,396

409,048

(1,981,961
)
(1,831,548
)
(875,668
)
  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(37,299
)
(5,560,838
)
(1,899,395
)
(17,744,419
)
(28,767,613
)
(2,163,473
)
(8,892,563
)
(16,260,866
)
(8,013,444
)
(1,169,485
)
  Other transactions
156

397

62

(295
)
8,387

52

(384
)
2,543

25,039

—

  Death benefits
(45,735
)
(695,880
)
(213,253
)
(2,433,620
)
(4,708,712
)
(132,262
)
(1,375,147
)
(2,529,811
)
(961,068
)
(160,999
)
  Net annuity transactions
(12,707
)
65,308

443

(95,145
)
60,236

7,579

93,137

(12,503
)
19,295

1,165

  Net increase (decrease) in net assets resulting from unit transactions
9,182

(7,236,435
)
(238,107
)
(21,418,720
)
(39,373,184
)
(2,073,459
)
(9,553,687
)
(20,362,574
)
(10,539,885
)
(2,167,539
)
  Net increase (decrease) in net assets
(2,172
)
(6,287,453
)
2,824,180

(14,421,395
)
(12,461,020
)
11,364

(6,161,377
)
(12,436,878
)
(4,800,496
)
(2,819,344
)
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
857,471

52,059,671

11,919,792

122,914,593

219,877,316

14,902,292

71,098,235

123,367,075

66,618,842

12,899,308

  End of period
$
855,299

$
45,772,218

$
14,743,972

$
108,493,198

$
207,416,296

$
14,913,656

$
64,936,858

$
110,930,197

$
61,818,346

$
10,079,964

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 
SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Templeton Global Bond VIP Fund
Hartford Balanced HLS Fund
Hartford Total Return Bond HLS Fund
Hartford Capital Appreciation HLS Fund
Hartford Dividend and Growth HLS Fund
Hartford Healthcare HLS Fund
Hartford Global Growth HLS Fund
Hartford Disciplined Equity HLS Fund
Hartford Growth Opportunities HLS Fund
Hartford High Yield HLS Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(209,114
)
$
85,403

$
1,045,008

$
(608,205
)
$
311,735

$
2,526

$
(11,617
)
$
(75,405
)
$
(286,097
)
$
325,807

  Net realized gain (loss) on security transactions
(360,076
)
593,489

313,971

923,403

1,709,473

8,463

7,199

304,776

808,126

(147,656
)
  Net realized gain distributions
11,290

—

451,606

10,740,554

9,435,755

27,215

96,149

1,446,014

3,519,439

—

  Change in unrealized appreciation (depreciation) during the period
691,298

(116,267
)
1,640,735

(7,104,311
)
(1,232,989
)
(54,355
)
(93,280
)
(1,227,725
)
(4,730,050
)
684,523

  Net increase (decrease) in net assets resulting from operations
133,398

562,625

3,451,320

3,951,441

10,223,974

(16,151
)
(1,549
)
447,660

(688,582
)
862,674

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
42,435

4,397

804,972

791,552

650,266

—

1,300

102,175

120,415

71,511

  Net transfers
228,776

519,280

628,215

(727,906
)
(1,290,477
)
(9,728
)
(70,680
)
277,173

(1,622,443
)
(154,874
)
  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(1,751,102
)
(2,479,880
)
(15,598,145
)
(14,560,331
)
(10,772,766
)
(33,811
)
(46,409
)
(1,717,787
)
(3,556,726
)
(755,613
)
  Other transactions
(2
)
9

(772
)
(1,009
)
(30
)
1

(1
)
9

15

(1
)
  Death benefits
(231,765
)
(146,278
)
(3,059,927
)
(2,185,016
)
(1,647,825
)
—

—

(109,118
)
(431,974
)
(214,609
)
  Net annuity transactions
(3,357
)
(674
)
(63,698
)
45,004

(69,635
)
—

(12,969
)
(55,259
)
(10,071
)
(3,380
)
  Net increase (decrease) in net assets resulting from unit transactions
(1,715,015
)
(2,103,146
)
(17,289,355
)
(16,637,706
)
(13,130,467
)
(43,538
)
(128,759
)
(1,502,807
)
(5,500,784
)
(1,056,966
)
  Net increase (decrease) in net assets
(1,581,617
)
(1,540,521
)
(13,838,035
)
(12,686,265
)
(2,906,493
)
(59,689
)
(130,308
)
(1,055,147
)
(6,189,366
)
(194,292
)
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
14,919,710

14,355,475

125,304,643

122,216,277

87,476,243

157,225

1,034,183

12,535,282

29,530,340

7,448,045

  End of period
$
13,338,093

$
12,814,954

$
111,466,608

$
109,530,012

$
84,569,750

$
97,536

$
903,875

$
11,480,135

$
23,340,974

$
7,253,753

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hartford International Opportunities HLS Fund
Hartford Small/Mid Cap Equity HLS Fund
Hartford MidCap HLS Fund
Hartford MidCap Value HLS Fund
Hartford Ultrashort Bond HLS Fund
Hartford Small Company HLS Fund
Hartford SmallCap Growth HLS Fund
Hartford Stock HLS Fund
Hartford U.S. Government Securities HLS Fund
Hartford Value HLS Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(3,819
)
$
(7,123
)
$
(11,233
)
$
(7,361
)
$
(836,977
)
$
(53,438
)
$
(14,821
)
$
(28,354
)
$
18,739

$
3,266

  Net realized gain (loss) on security transactions
159,666

(83,064
)
46,200

(8,211
)
27,929

(154,206
)
(14,758
)
324,503

(12,715
)
62,787

  Net realized gain distributions
—

96,634

91,642

55,173

—

287,280

45,606

—

—

166,115

  Change in unrealized appreciation (depreciation) during the period
(188,355
)
179,519

(52,268
)
(7,421
)
289,186

(99,034
)
92,106

39,762

(8,374
)
(85,053
)
  Net increase (decrease) in net assets resulting from operations
(32,508
)
185,966

74,341

32,180

(519,862
)
(19,398
)
108,133

335,911

(2,350
)
147,115

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
35,216

1,370

—

—

169,685

3,198

120

2,467

28,892

2,606

  Net transfers
136,884

116,862

(194,100
)
(31,402
)
2,539,729

(29,459
)
220,184

235,003

1,536,266

4,638

  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(910,684
)
(273,566
)
(63,484
)
(55,664
)
(10,005,217
)
(368,418
)
(74,410
)
(834,587
)
(1,717,960
)
(174,267
)
  Other transactions
(6
)
2

—

—

(230
)
(4
)
1

47

—

—

  Death benefits
(77,292
)
(6,144
)
(1,080
)
—

(1,178,274
)
(39,518
)
(7,914
)
(226,049
)
(68,525
)
(7,893
)
  Net annuity transactions
(23,929
)
—

(5,467
)
—

(99,376
)
1,748

—

(16,609
)
—

(772
)
  Net increase (decrease) in net assets resulting from unit transactions
(839,811
)
(161,476
)
(264,131
)
(87,066
)
(8,573,683
)
(432,453
)
137,981

(839,728
)
(221,327
)
(175,688
)
  Net increase (decrease) in net assets
(872,319
)
24,490

(189,790
)
(54,886
)
(9,093,545
)
(451,851
)
246,114

(503,817
)
(223,677
)
(28,573
)
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
7,595,342

1,650,963

898,288

471,761

66,818,100

3,177,827

914,747

7,138,262

4,931,918

1,410,659

  End of period
$
6,723,023

$
1,675,453

$
708,498

$
416,875

$
57,724,555

$
2,725,976

$
1,160,861

$
6,634,445

$
4,708,241

$
1,382,086

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Catalyst Dividend Capture VA Fund
Catalyst Insider Buying VA Fund
Lord Abbett Fundamental Equity Fund
Lord Abbett Calibrated Dividend Growth Fund
Lord Abbett Bond Debenture Fund
Lord Abbett Growth and Income Fund
MFS® Growth Fund
MFS® Global Equity Fund
MFS® Investors Trust Fund
MFS® Mid Cap Growth Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
135,752

$
(38,043
)
$
5,494

$
(1,963
)
$
264,730

$
(3,873
)
$
(488,975
)
$
(44,183
)
$
(486,242
)
$
(310,844
)
  Net realized gain (loss) on security transactions
23,709

(192,305
)
(14,615
)
21,530

86,276

159,600

1,376,681

220,614

1,996,576

427,479

  Net realized gain distributions
—

1,079,874

26,690

204,430

—

22,838

1,714,027

253,142

5,440,422

1,185,994

  Change in unrealized appreciation (depreciation) during the period
85,352

(545,522
)
193,398

214,050

584,906

67,387

(2,441,354
)
(174,346
)
(3,868,408
)
(959,147
)
  Net increase (decrease) in net assets resulting from operations
244,813

304,004

210,967

438,047

935,912

245,952

160,379

255,227

3,082,348

343,482

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
9,856

6,387

189

5,609

99,759

175

36,167

11,929

147,799

48,842

  Net transfers
(138,503
)
(193,521
)
(130,694
)
325,570

(142,004
)
38,246

327,398

164,074

(905,970
)
(3,579,020
)
  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(666,223
)
(627,492
)
(197,983
)
(984,370
)
(1,531,598
)
(302,228
)
(3,963,099
)
(682,054
)
(6,502,837
)
(2,010,104
)
  Other transactions
—

30

(2
)
1

(1
)
—

687

—

(5,362
)
258

  Death benefits
(69,588
)
(102,420
)
(14,911
)
(21,814
)
(242,907
)
(70,457
)
(460,582
)
(77,390
)
(1,137,300
)
(289,837
)
  Net annuity transactions
2,542

1,856

—

—

(1,732
)
—

(5,188
)
(28,528
)
79,622

(3,511
)
  Net increase (decrease) in net assets resulting from unit transactions
(861,916
)
(915,160
)
(343,401
)
(675,004
)
(1,818,483
)
(334,264
)
(4,064,617
)
(611,969
)
(8,324,048
)
(5,833,372
)
  Net increase (decrease) in net assets
(617,103
)
(611,156
)
(132,434
)
(236,957
)
(882,571
)
(88,312
)
(3,904,238
)
(356,742
)
(5,241,700
)
(5,489,890
)
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
4,608,990

4,353,545

1,564,491

3,520,410

10,198,325

1,843,008

30,701,151

5,128,324

54,485,307

19,659,627

  End of period
$
3,991,887

$
3,742,389

$
1,432,057

$
3,283,453

$
9,315,754

$
1,754,696

$
26,796,913

$
4,771,582

$
49,243,607

$
14,169,737

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MFS® New Discovery Fund
MFS® Total Return Fund
MFS® Value Fund
MFS® Total Return Bond Series
MFS® Research Fund
MFS® High Yield Portfolio
BlackRock Global Allocation V.I. Fund
BlackRock Global Opportunities V.I. Fund
BlackRock Large Cap Growth V.I. Fund
BlackRock Equity Dividend V.I. Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(551,772
)
$
1,739,704

$
212,544

$
1,450,904

$
(39,413
)
$
1,544,137

$
998

$
(109
)
$
(6,365
)
$
5,990

  Net realized gain (loss) on security transactions
(126,439
)
3,778,870

3,526,224

817,836

97,418

(837,579
)
(16,281
)
(80
)
19,219

16,632

  Net realized gain distributions
1,356,031

5,221,271

5,121,891

—

360,431

—

—

59

37,161

20,499

  Change in unrealized appreciation (depreciation) during the period
1,322,210

472,886

(1,669,725
)
(65,868
)
(189,375
)
2,702,762

18,497

529

(26,011
)
59,684

  Net increase (decrease) in net assets resulting from operations
2,000,030

11,212,731

7,190,934

2,202,872

229,061

3,409,320

3,214

399

24,004

102,805

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
69,609

660,924

239,818

173,046

1,593

127,871

—

—

—

4,009

  Net transfers
(686,792
)
358,017

(1,165,276
)
3,180,076

(104,329
)
879,441

2,355

—

1,720

(82,459
)
  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(3,899,126
)
(22,300,395
)
(8,749,185
)
(11,619,807
)
(351,894
)
(4,785,756
)
(12,631
)
(2,448
)
(20,776
)
(55,004
)
  Other transactions
(3,495
)
(343
)
(1,489
)
(233
)
(13
)
276

—

—

—

1

  Death benefits
(391,195
)
(3,553,905
)
(1,351,291
)
(2,010,208
)
(94,708
)
(855,385
)
(62,863
)
—

(7,078
)
(24,408
)
  Net annuity transactions
15,678

366,388

102,234

(1,144
)
(8,249
)
16,545

—

—

—

—

  Net increase (decrease) in net assets resulting from unit transactions
(4,895,321
)
(24,469,314
)
(10,925,189
)
(10,278,270
)
(557,600
)
(4,617,008
)
(73,139
)
(2,448
)
(26,134
)
(157,861
)
  Net increase (decrease) in net assets
(2,895,291
)
(13,256,583
)
(3,734,255
)
(8,075,398
)
(328,539
)
(1,207,688
)
(69,925
)
(2,049
)
(2,130
)
(55,056
)
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
32,932,634

168,891,338

66,887,253

86,674,926

3,977,640

31,860,609

270,210

38,427

445,990

760,676

  End of period
$
30,037,343

$
155,634,755

$
63,152,998

$
78,599,528

$
3,649,101

$
30,652,921

$
200,285

$
36,378

$
443,860

$
705,620

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
 
Hartford Life Insurance Company
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UIF Core Plus Fixed Income Portfolio
UIF Growth Portfolio
UIF Mid Cap Growth Portfolio
Invesco V.I. American Value Fund
Morgan Stanley Mid Cap Growth Portfolio
BlackRock Capital Appreciation V.I. Fund
Columbia Variable Portfolio - Asset Allocation Fund
 
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(13
)
$
(4,755
)
$
(22,862
)
$
(11,056
)
$
(1,827
)
$
(4,294
)
$
4,702

 
  Net realized gain (loss) on security transactions
53

(125
)
(64,216
)
7,566

(2,848
)
(5,408
)
(71,738
)
 
  Net realized gain distributions
—

42,447

71,910

48,930

5,360

16,085

25,647

 
  Change in unrealized appreciation (depreciation) during the period
1,686

(46,491
)
(144,356
)
57,282

(13,664
)
(9,748
)
101,873

 
  Net increase (decrease) in net assets resulting from operations
1,726

(8,924
)
(159,524
)
102,722

(12,979
)
(3,365
)
60,484

 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
  Purchases
—

10,500

3,367

691

21,000

—

—

 
  Net transfers
—

(5,224
)
(19,854
)
188,763

380

(3,250
)
(130,340
)
 
  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

 
  Surrenders for benefit payments and fees
(715
)
(10,823
)
(175,534
)
(50,219
)
(10,037
)
(50,295
)
(307,826
)
 
  Other transactions
—

(2
)
—

(1
)
1

—

6

 
  Death benefits
—

—

(22,531
)
(13,539
)
—

(7,739
)
(377,178
)
 
  Net annuity transactions
—

—

—

—

—

—

(1,163
)
 
  Net increase (decrease) in net assets resulting from unit transactions
(715
)
(5,549
)
(214,552
)
125,695

11,344

(61,284
)
(816,501
)
 
  Net increase (decrease) in net assets
1,011

(14,473
)
(374,076
)
228,417

(1,635
)
(64,649
)
(756,017
)
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
  Beginning of period
42,783

262,035

1,673,534

721,691

128,306

624,328

2,685,616

 
  End of period
$
43,794

$
247,562

$
1,299,458

$
950,108

$
126,671

$
559,679

$
1,929,599

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Columbia Variable Portfolio - Dividend Opportunity Fund
Columbia Variable Portfolio - Income Opportunities Fund
Columbia Variable Portfolio - Mid Cap Growth Fund
Oppenheimer Capital Appreciation Fund/VA
Oppenheimer Global Fund/VA
Oppenheimer Main Street Fund®/VA
Oppenheimer Main Street Small Cap Fund/VA
Oppenheimer Equity Income Fund/VA
Putnam VT Diversified Income Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(164,515
)
$
526,651

$
(152,948
)
$
(10,959
)
$
(39,334
)
$
(4,228
)
$
(58,103
)
$
9,735

$
759,401

  Net realized gain (loss) on security transactions
433,414

(190,622
)
311,084

4,811

254,674

27,907

170,737

215

(516,691
)
  Net realized gain distributions
—

272,721

—

83,311

333,431

64,334

167,899

—

—

  Change in unrealized appreciation (depreciation) during the period
550,766

(114,443
)
(183,710
)
(114,647
)
(696,118
)
(39,483
)
338,093

22,155

177,118

  Net increase (decrease) in net assets resulting from operations
819,665

494,307

(25,574
)
(37,484
)
(147,347
)
48,530

618,626

32,105

419,828

 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
  Purchases
15,291

3,595

652

365

1,883

1,973

21,543

—

74,443

  Net transfers
(339,499
)
86,893

(62,909
)
(23,265
)
(64,284
)
616,028

(82,980
)
1,640

(140,326
)
  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(663,653
)
(572,430
)
(830,276
)
(291,624
)
(1,028,956
)
(76,574
)
(651,965
)
(16,455
)
(2,148,999
)
  Other transactions
40

4

58

(2
)
—

(2
)
—

1

—

  Death benefits
(112,779
)
(183,383
)
(129,417
)
—

(12,933
)
(8,466
)
(56,929
)
—

(211,006
)
  Net annuity transactions
(8,287
)
31,392

(9,023
)
(29,390
)
—

—

—

(7,826
)
—

  Net increase (decrease) in net assets resulting from unit transactions
(1,108,887
)
(633,929
)
(1,030,915
)
(343,916
)
(1,104,290
)
532,959

(770,331
)
(22,640
)
(2,425,888
)
  Net increase (decrease) in net assets
(289,222
)
(139,622
)
(1,056,489
)
(381,400
)
(1,251,637
)
581,489

(151,705
)
9,465

(2,006,060
)
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
  Beginning of period
7,817,514

6,144,082

7,843,268

925,014

5,721,917

544,744

4,687,398

274,799

14,450,912

  End of period
$
7,528,292

$
6,004,460

$
6,786,779

$
543,614

$
4,470,280

$
1,126,233

$
4,535,693

$
284,264

$
12,444,852

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Putnam VT Global Asset Allocation Fund
Putnam VT Growth Opportunities Fund
Putnam VT International Value Fund
Putnam VT International Equity Fund
Putnam VT Small Cap Value Fund
JPMorgan Insurance Trust Core Bond Portfolio
JPMorgan Insurance Trust U.S. Equity Portfolio
JPMorgan Insurance Trust Intrepid Mid Cap Portfolio
JPMorgan Insurance Trust Mid Cap Value Portfolio
 
Sub-Account
Sub-Account (1)
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
907

$
(1,542
)
$
1,316

$
6,158

$
(940
)
$
455,298

$
(28,438
)
$
(51,957
)
$
(29,069
)
  Net realized gain (loss) on security transactions
(1,212
)
975

(1,690
)
11,729

(4,051
)
46,681

293,875

(39,240
)
(141,291
)
  Net realized gain distributions
54,695

—

—

—

16,734

—

174,272

612,687

200,165

  Change in unrealized appreciation (depreciation) during the period
(15,260
)
14,074

(3,239
)
(37,838
)
27,064

(165,682
)
(32,011
)
27,298

427,457

  Net increase (decrease) in net assets resulting from operations
39,130

13,507

(3,613
)
(19,951
)
38,807

336,297

407,698

548,788

457,262

 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
  Purchases
—

—

—

120

325

83,515

4,055

1,617

3,741

  Net transfers
219,853

(62,720
)
(2,834
)
(29,086
)
93,188

339,553

(221,789
)
(238,613
)
34,974

  Net interfund transfers due to corporate actions
—

1,999,967

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(195,321
)
(11,518
)
(46,387
)
(97,843
)
(19,357
)
(6,016,977
)
(658,419
)
(673,397
)
(644,870
)
  Other transactions
12

—

1

—

—

3,345

(26
)
6

(14
)
  Death benefits
—

—

(12,504
)
—

—

(792,739
)
(66,419
)
(112,366
)
(133,752
)
  Net annuity transactions
—

—

(1,451
)
—

—

60,290

8,324

10,792

20,776

  Net increase (decrease) in net assets resulting from unit transactions
24,544

1,925,729

(63,175
)
(126,809
)
74,156

(6,323,013
)
(934,274
)
(1,011,961
)
(719,145
)
  Net increase (decrease) in net assets
63,674

1,939,236

(66,788
)
(146,760
)
112,963

(5,986,716
)
(526,576
)
(463,173
)
(261,883
)
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
  Beginning of period
631,283

—

181,713

441,289

163,592

41,578,351

5,467,830

6,192,871

4,053,803

  End of period
$
694,957

$
1,939,236

$
114,925

$
294,529

$
276,555

$
35,591,635

$
4,941,254

$
5,729,698

$
3,791,920

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 


SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Putnam VT Equity Income Fund
PIMCO All Asset Fund
PIMCO StocksPLUS Global Portfolio
PIMCO Global Multi-Asset Managed Allocation Portfolio
Jennison 20/20 Focus Fund
Jennison Fund
Prudential Value Portfolio
Prudential SP International Growth Portfolio
ClearBridge Variable Dividend Strategy Portfolio
Western Asset Variable Global High Yield Bond Portfolio
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
1,401

$
2,385

$
19,496

$
66

$
(1,066
)
$
(2,432
)
$
(642
)
$
(214
)
$
(17
)
$
1,444

  Net realized gain (loss) on security transactions
(2,684
)
(730
)
(19,883
)
(260
)
16,144

4,968

902

32

603

(2,246
)
  Net realized gain distributions
2,089

—

77,978

—

—

—

—

—

—

—

  Change in unrealized appreciation (depreciation) during the period
10,625

13,419

(45,393
)
360

(16,819
)
(7,724
)
3,453

(585
)
2,431

6,817

  Net increase (decrease) in net assets resulting from operations
11,431

15,074

32,198

166

(1,741
)
(5,188
)
3,713

(767
)
3,017

6,015

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
—

5,922

—

—

—

—

—

—

—

—

  Net transfers
1,982

(52
)
(33,217
)
39

—

178

—

—

(4,968
)
644

  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(7,420
)
(3,924
)
(41,838
)
(2,769
)
(5,453
)
(1,710
)
(3,225
)
(352
)
(854
)
(15,746
)
  Other transactions
1

—

378

—

79

2

(3
)
—

—

—

  Death benefits
(46,932
)
(8,177
)
(6,906
)
—

(15,130
)
(8,854
)
—

—

(493
)
—

  Net annuity transactions
—

—

—

—

(8,829
)
(6,197
)
—

—

—

—

  Net increase (decrease) in net assets resulting from unit transactions
(52,369
)
(6,231
)
(81,583
)
(2,730
)
(29,333
)
(16,581
)
(3,228
)
(352
)
(6,315
)
(15,102
)
  Net increase (decrease) in net assets
(40,938
)
8,843

(49,385
)
(2,564
)
(31,074
)
(21,769
)
485

(1,119
)
(3,298
)
(9,087
)
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
174,014

125,613

487,826

10,755

85,344

155,175

44,106

13,515

24,578

43,110

  End of period
$
133,076

$
134,456

$
438,441

$
8,191

$
54,270

$
133,406

$
44,591

$
12,396

$
21,280

$
34,023

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 


SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ClearBridge Variable Large Cap Value Portfolio
Invesco V.I. Growth and Income Fund
Invesco V.I. Comstock Fund
Invesco V.I. American Franchise Fund
Invesco V.I. Mid Cap Growth Fund
Wells Fargo VT Index Asset Allocation Fund
Wells Fargo VT International Equity Fund
Wells Fargo VT Small Cap Growth Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
179

$
(7,574
)
$
(1,820
)
$
(307,522
)
$
(54,718
)
$
(238
)
$
13,392

$
(15,683
)
  Net realized gain (loss) on security transactions
(1,057
)
9,387

8,465

895,058

(20,695
)
524

(31,707
)
(5,687
)
  Net realized gain distributions
13,174

125,658

15,756

1,423,482

297,873

693

70,043

90,790

  Change in unrealized appreciation (depreciation) during the period
60,631

95,202

5,320

(2,040,298
)
(269,372
)
410

(46,207
)
(18,010
)
  Net increase (decrease) in net assets resulting from operations
72,927

222,673

27,721

(29,280
)
(46,912
)
1,389

5,521

51,410

 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
  Purchases
—

100

—

52,886

926

120

1,872

544

  Net transfers
(4,995
)
33,657

192

(498,354
)
(247,342
)
—

(9,275
)
(97,590
)
  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(88,813
)
(114,792
)
(43,719
)
(2,050,317
)
(401,966
)
(1,396
)
(165,764
)
(139,323
)
  Other transactions
1

2

—

113

1

—

—

—

  Death benefits
—

—

—

(246,901
)
(91,028
)
—

(671
)
(14,899
)
  Net annuity transactions
(5,103
)
—

—

55,028

(6,512
)
—

—

—

  Net increase (decrease) in net assets resulting from unit transactions
(98,910
)
(81,033
)
(43,527
)
(2,687,545
)
(745,921
)
(1,276
)
(173,838
)
(251,268
)
  Net increase (decrease) in net assets
(25,983
)
141,640

(15,806
)
(2,716,825
)
(792,833
)
113

(168,317
)
(199,858
)
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
  Beginning of period
688,569

1,353,083

234,196

18,063,322

3,480,279

25,491

1,052,786

1,040,984

  End of period
$
662,586

$
1,494,723

$
218,390

$
15,346,497

$
2,687,446

$
25,604

$
884,469

$
841,126

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wells Fargo VT Discovery Fund
Wells Fargo VT Opportunity Fund
HIMCO VIT Index Fund
HIMCO VIT Portfolio Diversifier Fund
HIMCO VIT American Funds Asset Allocation Fund
HIMCO VIT American Funds Blue Chip Income and Growth Fund
HIMCO VIT American Funds Bond Fund
HIMCO VIT American Funds Global Bond Fund
HIMCO VIT American Funds Global Growth and Income Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
(92
)
$
51,202

$
48,631

$
(276,578
)
$
70,563

$
40,386

$
441,086

$
(1,638
)
$
19,060

  Net realized gain (loss) on security transactions
11

427,693

328,585

(463,365
)
80

(29,131
)
(1,781
)
(24,672
)
(75,960
)
  Net realized gain distributions
511

704,472

326,223

—

1,787,798

1,216,277

220,144

—

1,071,824

  Change in unrealized appreciation (depreciation) during the period
(13
)
(481,440
)
(183,851
)
(1,081,971
)
(1,067,284
)
(369,456
)
(346,086
)
41,415

(622,517
)
  Net increase (decrease) in net assets resulting from operations
417

701,927

519,588

(1,821,914
)
791,157

858,076

313,363

15,105

392,407

 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
  Purchases
—

24,215

—

108,557

32,475

6,020

302,945

36,319

3,153

  Net transfers
—

(575,378
)
(39,766
)
2,689,767

888,655

510,654

(11,073
)
190,253

(13,639
)
  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

  Surrenders for benefit payments and fees
(46
)
(841,985
)
(3,219,995
)
(6,244,162
)
(2,591,363
)
(921,190
)
(3,231,569
)
(285,068
)
(1,295,546
)
  Other transactions
—

35

3

15

1

(1
)
99

(1
)
(1
)
  Death benefits
—

(172,224
)
(144,400
)
(382,674
)
(47,765
)
(77,831
)
(311,416
)
(99,245
)
(82,511
)
  Net annuity transactions
—

—

—

—

(14,550
)
(22,212
)
(10,016
)
(5,459
)
(22,613
)
  Net increase (decrease) in net assets resulting from unit transactions
(46
)
(1,565,337
)
(3,404,158
)
(3,828,497
)
(1,732,547
)
(504,560
)
(3,261,030
)
(163,201
)
(1,411,157
)
  Net increase (decrease) in net assets
371

(863,410
)
(2,884,570
)
(5,650,411
)
(941,390
)
353,516

(2,947,667
)
(148,096
)
(1,018,750
)
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
  Beginning of period
6,936

7,798,176

7,346,949

40,909,430

11,936,057

5,481,238

25,074,597

2,195,411

8,902,134

  End of period
$
7,307

$
6,934,766

$
4,462,379

$
35,259,019

$
10,994,667

$
5,834,754

$
22,126,930

$
2,047,315

$
7,883,384

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 
SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Statements of Changes in Net Assets (continued)
 
 
 
 
 
 
 
 
 
 
For the Periods Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
HIMCO VIT American Funds Global Growth Fund
HIMCO VIT American Funds Global Small Capitalization Fund
HIMCO VIT American Funds Growth Fund
HIMCO VIT American Funds Growth-Income Fund
HIMCO VIT American Funds International Fund
HIMCO VIT American Funds New World Fund
MFS® Core Equity Portfolio
MFS® Massachusetts Investors Growth Stock Portfolio
MFS® Research International Portfolio
Columbia Variable Portfolio - Large Cap Growth Fund
 
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account
Sub-Account (2)
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
 
 
 
  Net investment income (loss)
$
5,586

$
(85,863
)
$
(570,599
)
$
11,984

$
(44,402
)
$
11,247

$
(51,097
)
$
(84,974
)
$
(16,369
)
$
(98,147
)
  Net realized gain (loss) on security transactions
5,567

(86,472
)
(355,997
)
(161,943
)
(575,620
)
(85,291
)
(101,967
)
(153,809
)
(354,794
)
24,655

  Net realized gain distributions
427,812

1,367,791

18,559,062

7,135,206

3,074,935

165,950

375,955

826,351

—

—

  Change in unrealized appreciation (depreciation) during the period
(471,937
)
(1,191,376
)
(14,366,804
)
(4,751,444
)
(1,926,921
)
28,800

185,976

(317,449
)
100,417

360,615

  Net increase (decrease) in net assets resulting from operations
(32,972
)
4,080

3,265,662

2,233,803

527,992

120,706

408,867

270,119

(270,746
)
287,123

 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
 
 
 
  Purchases
1,190

22,750

180,580

101,221

138,087

2,013

1,176

18,014

7,761

1,336

  Net transfers
156,459

(38,532
)
(2,708,383
)
(713,011
)
(461,499
)
(274,926
)
(35,498
)
63,518

154,035

(162,267
)
  Net interfund transfers due to corporate actions
—

—

—

—

—

—

—

—

—

6,889,291

  Surrenders for benefit payments and fees
(170,189
)
(967,532
)
(6,995,687
)
(3,543,094
)
(3,814,358
)
(430,405
)
(416,237
)
(520,957
)
(1,548,733
)
(345,017
)
  Other transactions
—

(44
)
(188
)
(110
)
(1
)
—

82

31

346

—

  Death benefits
(45,856
)
(39,670
)
(692,543
)
(465,545
)
(544,955
)
(45,928
)
(128,032
)
(156,194
)
(221,208
)
(7,707
)
  Net annuity transactions
(684
)
(2,011
)
(38,119
)
(74,973
)
(3,845
)
(6,020
)
(22,484
)
(14,756
)
(8,925
)
89,387

  Net increase (decrease) in net assets resulting from unit transactions
(59,080
)
(1,025,039
)
(10,254,340
)
(4,695,512
)
(4,686,571
)
(755,266
)
(600,993
)
(610,344
)
(1,616,724
)
6,465,023

  Net increase (decrease) in net assets
(92,052
)
(1,020,959
)
(6,988,678
)
(2,461,709
)
(4,158,579
)
(634,560
)
(192,126
)
(340,225
)
(1,887,470
)
6,752,146

 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
 
 
 
  Beginning of period
2,564,372

7,747,579

52,215,077

27,011,054

30,118,413

4,589,521

4,844,572

6,798,502

11,376,017

—

  End of period
$
2,472,320

$
6,726,620

$
45,226,399

$
24,549,345

$
25,959,834

$
3,954,961

$
4,652,446

$
6,458,277

$
9,488,547

$
6,752,146

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 
 

SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
Statements of Changes in Net Assets (concluded)
 
 
 
 
 
 
 
For the Periods Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Columbia Variable Portfolio - Select International Equity Fund
Variable Portfolio - Loomis Sayles Growth Fund
 
 
 
 
 
 
Sub-Account (2)
Sub-Account (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
Operations:
 
 
 
 
 
 
 
  Net investment income (loss)
$
(18,784
)
$
(71,745
)
 
 
 
 
 
  Net realized gain (loss) on security transactions
(23,386
)
31,227

 
 
 
 
 
  Net realized gain distributions
—

—

 
 
 
 
 
  Change in unrealized appreciation (depreciation) during the period
(145,059
)
244,693

 
 
 
 
 
  Net increase (decrease) in net assets resulting from operations
(187,229
)
204,175

 
 
 
 
 
 
 
 
 
 
 
 
 
Unit transactions:
 
 
 
 
 
 
 
  Purchases
1,384

400

 
 
 
 
 
  Net transfers
13,953

42,200

 
 
 
 
 
  Net interfund transfers due to corporate actions
5,513,281

4,844,543

 
 
 
 
 
  Surrenders for benefit payments and fees
(318,640
)
(323,515
)
 
 
 
 
 
  Other transactions
1

(164
)
 
 
 
 
 
  Death benefits
(88,999
)
(31,545
)
 
 
 
 
 
  Net annuity transactions
67,866

58,858

 
 
 
 
 
  Net increase (decrease) in net assets resulting from unit transactions
5,188,846

4,590,777

 
 
 
 
 
  Net increase (decrease) in net assets
5,001,617

4,794,952

 
 
 
 
 
 
 
 
 
 
 
 
 
Net assets:
 
 
 
 
 
 
 
  Beginning of period
—

—

 
 
 
 
 
  End of period
$
5,001,617

$
4,794,952

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
 

(1) Funded as of November 18, 2016.
(2) Funded as of April 29, 2016.




SEPARATE ACCOUNT SEVEN
Hartford Life Insurance Company
 
 
 
 
 
 
 
Notes to Financial Statements
 
 
 
 
December 31, 2017
 
 
 
 
 

1. Organization:

Separate Account Seven (the “Account”) is a separate investment account established by Hartford Life Insurance Company (the “Sponsor Company”) and is registered with the Securities and Exchange Commission (“SEC”) as a unit investment trust under the Investment Company Act of 1940, as amended. Both the Sponsor Company and the Account are subject to supervision and regulation by the Department of Insurance of the State of Connecticut and the SEC. The contract owners of the Sponsor Company direct their deposits into various investment options (the “Sub-Accounts”) within the Account.

On December 3, 2017, a Stock and Asset Purchase Agreement was entered into by and among Hartford Holdings, Inc. (“HHI”) and its parent company, The Hartford Financial Services Group, Inc. (“HFSG”), Hopmeadow Acquisition, Inc. (“Buyer”), Hopmeadow Holdings, LP (“Buyer Parent”) and Hopmeadow Holdings GP LLC (“Buyer Parent GP”), pursuant to which HHI agreed to sell all of the issued and outstanding equity of Hartford Life, Inc. (“HLI”), the parent of the Sponsor Company and its indirect wholly owned subsidiary, Hartford Life and Annuity Insurance Company, to Buyer (the “Talcott Resolution Sale Transaction”).  Buyer, Buyer Parent and Buyer Parent GP are funded by a group of investors (the “Investor Group”) led by Cornell Capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP, Global Atlantic Financial Group, Pine Brook and J. Safra Group. HHI will also be a member of the Investor Group.

The closing of the Talcott Resolution Sale Transaction is subject to regulatory approvals, and the satisfaction of other closing conditions. The administration, terms, features and benefits of the contracts will not change as a result of the sale. The Talcott Resolution Sale Transaction is expected to close in the first half of 2018.

The Account is comprised of the following Sub-Accounts:
American Century VP Value Fund, American Century VP Growth Fund, AB VPS Balanced Wealth Strategy Portfolio, AB VPS International Value Portfolio, AB VPS Small/Mid Cap Value Portfolio, AB VPS Value Portfolio, AB VPS International Growth Portfolio, Invesco V.I. Value Opportunities Fund, Invesco V.I. Core Equity Fund, Invesco V.I. Government Securities Fund, Invesco V.I. High Yield Fund, Invesco V.I. International Growth Fund, Invesco V.I. Mid Cap Core Equity Fund, Invesco V.I. Small Cap Equity Fund, Invesco V.I. Balanced Risk Allocation Fund, Invesco V.I. Diversified Dividend Fund, Invesco V.I. Government Money Market Fund, American Century VP Mid Cap Value Fund, American Funds Global Bond Fund, American Funds Global Growth and Income Fund, American Funds Asset Allocation Fund, American Funds Blue Chip Income and Growth Fund, American Funds Bond Fund, American Funds Global Growth Fund, American Funds Growth Fund, American Funds Growth-Income Fund, American Funds International Fund, American Funds New World Fund, American Funds Global Small Capitalization Fund, Columbia Variable Portfolio - Small Company Growth Fund, Wells Fargo VT Omega Growth Fund, Fidelity® VIP Growth Portfolio, Fidelity® VIP Contrafund® Portfolio, Fidelity® VIP Mid Cap Portfolio, Fidelity® VIP Value Strategies Portfolio, Fidelity® VIP Dynamic Capital Appreciation Portfolio, Fidelity® VIP Strategic Income Portfolio, Franklin Rising Dividends VIP Fund, Franklin Income VIP Fund, Franklin Large Cap Growth VIP Fund, Franklin Global Real Estate VIP Fund, Franklin Small-Mid Cap Growth VIP Fund, Franklin Small Cap Value VIP Fund, Franklin Strategic Income VIP Fund, Franklin Mutual Shares VIP Fund, Templeton Developing Markets VIP Fund, Templeton Foreign VIP Fund, Templeton Growth VIP Fund, Franklin Mutual Global Discovery VIP Fund, Franklin Flex Cap Growth VIP Fund, Templeton Global Bond VIP Fund, Hartford Balanced HLS Fund, Hartford Total Return Bond HLS Fund, Hartford Capital Appreciation HLS Fund, Hartford Dividend and Growth HLS Fund, Hartford Healthcare HLS Fund, Hartford Global Growth HLS Fund, Hartford Disciplined Equity HLS Fund, Hartford Growth Opportunities HLS Fund, Hartford High Yield HLS Fund, Hartford International Opportunities HLS Fund, Hartford Small/Mid Cap Equity HLS Fund, Hartford MidCap HLS Fund, Hartford MidCap Value HLS Fund, Hartford Ultrashort Bond HLS Fund, Hartford Small Company HLS Fund, Hartford SmallCap Growth HLS Fund, Hartford Stock HLS Fund, Hartford U.S. Government Securities HLS Fund, Hartford Value HLS Fund, Rational Dividend Capture VA Fund (Formerly Catalyst Dividend Capture VA Fund), Rational Insider Buying VA Fund (Formerly Catalyst Insider Buying VA Fund), Lord Abbett Fundamental Equity Fund, Lord Abbett Calibrated Dividend Growth Fund, Lord Abbett Bond Debenture Fund, Lord Abbett Growth and Income Fund, MFS® Growth Fund, MFS® Global Equity Fund, MFS® Investors Trust Fund, MFS® Mid Cap Growth Fund, MFS® New Discovery Fund, MFS® Total Return Fund, MFS® Value Fund, MFS® Total Return Bond Series, MFS® Research Fund, MFS® High Yield Portfolio, BlackRock Global Allocation V.I. Fund, BlackRock Global Opportunities V.I. Fund, BlackRock Large Cap Focus Growth V.I. Fund (Formerly BlackRock Large Cap Growth V.I. Fund), BlackRock Equity Dividend V.I. Fund, Morgan Stanley VIF Core Plus Fixed Income Portfolio (Formerly UIF Core Plus Fixed Income Portfolio), Morgan Stanley VIF Growth Portfolio (Formerly UIF Growth Portfolio), Morgan Stanley VIF Mid Cap Growth Portfolio (Formerly UIF Mid Cap Growth Portfolio), Invesco V.I. American Value Fund, Morgan Stanley Mid Cap Growth Portfolio*, BlackRock Capital Appreciation V.I. Fund, Columbia Variable Portfolio - Asset Allocation Fund, Columbia Variable Portfolio - Dividend Opportunity Fund, Columbia Variable Portfolio - Income Opportunities Fund, Columbia Variable Portfolio - Mid Cap Growth Fund, Oppenheimer Capital Appreciation Fund/VA, Oppenheimer Global Fund/VA, Oppenheimer Main Street Fund®/VA (Merged with Oppenheimer Equity Income Fund/VA ), Oppenheimer Main Street Small Cap Fund/VA, Oppenheimer Equity Income Fund/VA (Merged with Oppenheimer Main Street Fund®/VA ), Putnam VT Diversified Income Fund, Putnam VT Global Asset Allocation Fund, Putnam VT Growth Opportunities Fund, Putnam VT International Value Fund, Putnam VT International Equity Fund, Putnam VT Small Cap Value Fund, JPMorgan Insurance Trust Core Bond Portfolio, JPMorgan Insurance Trust U.S. Equity Portfolio, JPMorgan Insurance Trust Intrepid Mid Cap Portfolio*, JPMorgan Insurance Trust Mid Cap Value Portfolio, Putnam VT Equity Income Fund, PIMCO All Asset Fund, PIMCO StocksPLUS Global Portfolio, PIMCO Global Multi-Asset Managed Allocation Portfolio, Jennison 20/20 Focus Fund, Jennison Fund, Prudential Value Portfolio, Prudential SP International Growth Portfolio, ClearBridge Variable Dividend Strategy Portfolio, Western Asset Variable Global High Yield Bond Portfolio, ClearBridge Variable Large Cap Value Portfolio, Invesco V.I. Growth and Income Fund, Invesco V.I. Comstock Fund, Invesco V.I. American Franchise Fund, Invesco V.I. Mid Cap Growth Fund, Wells Fargo VT Index Asset Allocation Fund, Wells Fargo VT International Equity Fund, Wells Fargo VT Small Cap Growth Fund, Wells Fargo VT Discovery Fund, Wells Fargo VT Opportunity Fund, HIMCO VIT Index Fund, HIMCO VIT Portfolio Diversifier Fund, HIMCO VIT American Funds Asset Allocation Fund*, HIMCO VIT American Funds Blue Chip Income and Growth Fund*, HIMCO VIT American Funds Bond Fund*, HIMCO VIT American Funds Global Bond Fund*, HIMCO VIT American Funds Global Growth and Income Fund*, HIMCO VIT American Funds Global Growth Fund*, HIMCO VIT American Funds Global Small Capitalization Fund*, HIMCO VIT American Funds Growth Fund*, HIMCO VIT American Funds Growth-Income Fund*, HIMCO VIT American Funds International Fund*, HIMCO VIT American Funds New World Fund*, MFS® Core Equity Portfolio, MFS® Massachusetts Investors Growth Stock Portfolio, MFS® Research International Portfolio, Columbia Variable Portfolio - Large Cap Growth Fund, Columbia Variable Portfolio - Select International Equity Fund, Variable Portfolio - Loomis Sayles Growth Fund.
* During 2017, this Sub-Account was liquidated.

The Sub-Accounts are invested in mutual funds (the “Funds”) of the same name. Each Sub-Account may invest in one or more share classes of a Fund, depending upon the product(s) available in that Sub-Account. A contract owner's unitized performance correlates with the share class associated with the contract owner's product.

If a Fund is subject to a merger by the Fund Manager, the Sub-Account invested in the surviving Fund acquires, at fair value, the net assets of the Sub-Account associated with the merging Fund on the date disclosed. These transfers are reflected in net interfund transfers due to corporate actions on the statements of changes in net assets.

Under applicable insurance law, the assets and liabilities of the Account are clearly identified and distinguished from the Sponsor Company’s other assets and liabilities and are not chargeable with liabilities arising out of any other business the Sponsor Company may conduct.

2. Significant Accounting Policies:

The Account qualifies as an investment company and follows the accounting and reporting guidance as defined in Accounting Standards Codification 946, "Financial Services - Investment Companies." The following is a summary of significant accounting policies of the Account, which are in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"):

a) Security Transactions - Security transactions are recorded on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sales of securities are computed using the average cost method. Dividend income is either accrued daily or as of the ex-dividend date based upon the Fund. Net realized gain distributions are accrued as of the ex-dividend date. Net realized gain distributions represent those dividends from the Funds which are characterized as capital gains under tax regulations.

b) Unit Transactions - Unit transactions are executed based on the unit values calculated at the close of the business day.

c) Federal Income Taxes - The operations of the Account form a part of, and are taxed with, the total operations of the Sponsor Company, which is taxed as an insurance company under the Internal Revenue Code ("IRC"). Under the current provisions of the IRC, the Sponsor Company does not expect to incur federal income taxes on the earnings of the Account to the extent the earnings are credited to the contract owners. Based on this, no charge is being made currently to the Account for federal income taxes. The Sponsor Company will review periodically the status of this 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.

d) Use of Estimates - The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the period. Actual results could differ from those estimates. The most significant estimates contained within the financial statements are the fair value measurements.

e) Mortality Risk - The mortality risk associated with net assets allocated to contracts in the annuity period is determined using certain mortality tables. The mortality risk is fully borne by the Sponsor Company and may result in additional amounts being transferred into the Account by the Sponsor Company to cover greater longevity of contract owners than expected. Conversely, if amounts allocated exceed amounts required, transfers may be made to the Sponsor Company. These amounts are included in net annuity transactions on the accompanying statements of changes in net assets.

f) Fair Value Measurements - The Sub-Accounts' investments are carried at fair value in the Account’s financial statements. The investments in shares of the Funds are valued at the December 31, 2017 closing net asset value as determined by the appropriate Fund Manager. For financial instruments that are carried at fair value, a hierarchy is used to place the instruments into three broad levels (Levels 1, 2 and 3) by prioritizing the inputs in the valuation techniques used to measure fair value.

Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets that the Account has the ability to access at the measurement date. Level 1 investments include mutual funds.

Level 2: Observable inputs, other than unadjusted quoted prices included in Level 1, for the asset or liability or prices for similar assets and liabilities. Level 2 investments include those that are model priced by vendors using observable inputs.

Level 3: Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk). Because Level 3 fair values, by their nature, contain unobservable market inputs, considerable judgment is used to determine the Level 3 fair values. Level 3 fair values represent the best estimate of an amount that could be realized in a current market exchange absent actual market exchanges.

In certain cases, the inputs used to measure fair value fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

As of December 31, 2017, the Sub-Accounts invest in mutual funds which are carried at fair value and represent Level 1 investments under the fair value hierarchy levels. There were no Level 2 or Level 3 investments in the Sub-Accounts. The Account’s policy is to recognize transfers of securities among the levels at the beginning of the reporting period. There were no transfers among the levels for the periods ended December 31, 2017 and 2016.

g) Accounting for Uncertain Tax Positions - The federal audit of the years 2012 and 2013 was completed as of March 31, 2017 with no additional adjustments. Management evaluates whether or not there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions are required at December 31, 2017.

3. Administration of the Account and Related Charges:

Each Sub-Account is charged certain fees, according to contract terms, as follows:

a) Mortality and Expense Risk Charges - The Sponsor Company, as an issuer of variable annuity contracts, assesses mortality and expense risk charges for which it receives a maximum annual fee of 1.55% of the Sub-Account’s average daily net assets. These charges are reflected in the accompanying statements of operations as a reduction in unit value.

b) Tax Expense Charges - If applicable, the Sponsor Company will make deductions up to a maximum rate of 3.50% of the contract’s average daily net assets to meet premium tax requirements. An additional tax charge based on a percentage of the Sub-Account’s average daily net assets may be assessed on partial withdrawals or surrenders. These charges are a redemption of units from applicable contract owners’ accounts and are reflected in surrenders for benefit payments and fees on the accompanying statements of changes in net assets.

c) Administrative Charges - The Sponsor Company provides administrative services to the Account and receives a maximum annual fee of 0.20% of the Sub-Account’s average daily net assets for these services. These charges are reflected in the accompanying statements of operations as a reduction in unit value.

d) Annual Maintenance Fees - An annual maintenance fee up to a maximum of $50 may be charged. These charges are deducted through a redemption of units from applicable contract owners’ accounts and are reflected in surrenders for benefit payments and fees in the accompanying statements of changes in net assets.

e) Rider Charges -

The Sponsor Company will make certain deductions (as a percentage of average daily Sub-Account value) for various rider charges:

Optional Death Benefit Charge maximum of 0.15%
Earnings Protection Benefit Charge maximum of 0.20%
Principal First Charge maximum of 0.75%
Principal First Preferred Charge maximum of 0.20%
MAV/EPB Death Benefit Charge maximum of 0.30%
MAV 70 Death Benefit Charge maximum of 0.20%
MAV Plus Charge maximum of 0.30%
Maximum Anniversary Value III Charge maximum of 1.50%
Liquidity Feature Charge maximum of 0.50%
MAV V Charge maximum of 1.50%
MAV IV Charge maximum of 1.50%
Legacy Lock Charge maximum of 1.50%
Daily Lock Charge maximum of 2.50%
Safety Plus Charge maximum of 2.50%
Future 5 Charge maximum of 2.50%
Future 6 Charge maximum of 2.50%
Maximum Daily Value Charge maximum of 1.50%
Return of Premium IV Charge maximum of 0.75%
Return of Premium V Charge maximum of 0.75%
Return of Premium III Charge maximum of 0.75%
Return of Premium Death Benefit Charge maximum of 0.75%
The Hartford’s Lifetime Income Builder Charge maximum of 0.75%
The Hartford’s Lifetime Income Builder II Charge maximum of 0.75%
The Hartford’s Lifetime Income Foundation Charge maximum of 0.30%
The Hartford’s Lifetime Income Builder Selects Charge maximum of 1.50%
The Hartford’s Lifetime Income Builder Portfolios Charge maximum of 1.50%
Income Foundation Builder maximum of 2.50%

These charges can be assessed as a reduction in unit values or a redemption of units from applicable contract owners’ accounts as specified in the product prospectus.

f) Distribution Charge - A Distribution Charge of 0.85% may be charged, by the Sponsor Company, to the contract’s value each year at the contract anniversary date. This charge is based on a percentage of remaining gross premiums with each premium payment having its own Distribution Charge schedule. The Distribution Charge is reduced to zero after the completion of seven or eight years (based upon contract terms) after each respective premium payment. These charges are deducted through a redemption of units from applicable contract owners’ accounts and are reflected in surrenders for benefit payments and fees in the accompanying statements of changes in net assets.

g) Transactions with Related Parties - The Sponsor and its affiliates receive fees from the HLS and HIMCO VIT funds for services provided to these Funds. The fees received for these services are a maximum of 1.12% and 1.35%, respectively, of the Funds’ average daily net assets.

4. Purchases and Sales of Investments:

The cost of purchases and proceeds from sales of investments for the period ended December 31, 2017 were as follows:

Sub-Account
Purchases at Cost
Proceeds from Sales
American Century VP Value Fund
 
$
207,292

$
428,021

American Century VP Growth Fund
 
$
24,868

$
19,450

AB VPS Balanced Wealth Strategy Portfolio
 
$
352,894

$
817,619

AB VPS International Value Portfolio
 
$
214,753

$
1,147,425

AB VPS Small/Mid Cap Value Portfolio
 
$
369,806

$
671,031

AB VPS Value Portfolio
 
$
7,008

$
36,117

AB VPS International Growth Portfolio
 
$
106,077

$
210,702

Invesco V.I. Value Opportunities Fund
 
$
1,326,741

$
4,053,395

Invesco V.I. Core Equity Fund
 
$
2,886,015

$
5,981,686

Invesco V.I. Government Securities Fund
 
$
10,381,032

$
18,426,459

Invesco V.I. High Yield Fund
 
$
35,310

$
118,098

Invesco V.I. International Growth Fund
 
$
2,263,746

$
8,775,922

Invesco V.I. Mid Cap Core Equity Fund
 
$
2,243,063

$
6,658,379

Invesco V.I. Small Cap Equity Fund
 
$
2,546,559

$
5,330,328

Invesco V.I. Balanced Risk Allocation Fund
 
$
338,124

$
660,463

Invesco V.I. Diversified Dividend Fund
 
$
365

$
665

Invesco V.I. Government Money Market Fund
 
$
33,730,772

$
40,837,582

American Century VP Mid Cap Value Fund
 
$
20,162

$
20,865

American Funds Global Bond Fund
 
$
5,904,278

$
6,022,880

American Funds Global Growth and Income Fund
 
$
12,196,618

$
9,612,273

American Funds Asset Allocation Fund
 
$
25,016,232

$
27,952,629

American Funds Blue Chip Income and Growth Fund
 
$
14,356,474

$
18,018,472

American Funds Bond Fund
 
$
34,806,630

$
21,893,558

American Funds Global Growth Fund
 
$
8,320,687

$
10,684,004

American Funds Growth Fund
 
$
94,028,530

$
81,337,463

American Funds Growth-Income Fund
 
$
58,511,409

$
66,695,099

American Funds International Fund
 
$
34,651,770

$
20,049,909

American Funds New World Fund
 
$
7,632,524

$
7,250,768

American Funds Global Small Capitalization Fund
 
$
8,328,358

$
7,285,443

Columbia Variable Portfolio - Small Company Growth Fund
 
$
427,554

$
862,638

Wells Fargo VT Omega Growth Fund
 
$
135,190

$
384,579

Fidelity® VIP Growth Portfolio
 
$
333,600

$
716,360

Fidelity® VIP Contrafund® Portfolio
 
$
1,702,180

$
4,424,660

Fidelity® VIP Mid Cap Portfolio
 
$
1,148,175

$
3,602,794

Fidelity® VIP Value Strategies Portfolio
 
$
198,043

$
78,298

Fidelity® VIP Dynamic Capital Appreciation Portfolio
 
$
45,371

$
157,790

Fidelity® VIP Strategic Income Portfolio
 
$
8,227

$
3,610

Franklin Rising Dividends VIP Fund
 
$
11,903,556

$
33,174,599

Franklin Income VIP Fund
 
$
19,585,001

$
66,610,722

Franklin Large Cap Growth VIP Fund
 
$
4,185,819

$
5,713,422

Franklin Global Real Estate VIP Fund
 
$
55,468

$
155,019

Franklin Small-Mid Cap Growth VIP Fund
 
$
6,761,399

$
9,328,635

Franklin Small Cap Value VIP Fund
 
$
2,275,941

$
5,127,134

Franklin Strategic Income VIP Fund
 
$
9,007,951

$
18,464,883

Franklin Mutual Shares VIP Fund
 
$
16,470,225

$
38,625,582

Templeton Developing Markets VIP Fund
 
$
2,872,806

$
4,990,153

Templeton Foreign VIP Fund
 
$
3,765,427

$
13,896,542

Templeton Growth VIP Fund
 
$
4,044,519

$
22,385,569

Franklin Mutual Global Discovery VIP Fund
 
$
6,514,663

$
11,241,622

Franklin Flex Cap Growth VIP Fund
 
$
660,478

$
2,343,312

Templeton Global Bond VIP Fund
 
$
1,039,736

$
2,854,697

Hartford Balanced HLS Fund
 
$
1,280,547

$
2,581,200

Hartford Total Return Bond HLS Fund
 
$
12,869,421

$
21,366,150

Hartford Capital Appreciation HLS Fund
 
$
8,051,405

$
25,730,314

Hartford Dividend and Growth HLS Fund
 
$
8,178,772

$
20,966,200

Hartford Healthcare HLS Fund
 
$
12,255

$
33,913

Hartford Global Growth HLS Fund
 
$
186,728

$
312,719

Hartford Disciplined Equity HLS Fund
 
$
1,903,243

$
2,364,687

Hartford Growth Opportunities HLS Fund
 
$
1,354,471

$
6,967,013

Hartford High Yield HLS Fund
 
$
1,097,670

$
1,889,463

Hartford International Opportunities HLS Fund
 
$
736,353

$
1,586,852

Hartford Small/Mid Cap Equity HLS Fund
 
$
153,373

$
699,349

Hartford MidCap HLS Fund
 
$
37,281

$
60,549

Hartford MidCap Value HLS Fund
 
$
64,392

$
155,016

Hartford Ultrashort Bond HLS Fund
 
$
6,489,269

$
15,261,457

Hartford Small Company HLS Fund
 
$
105,668

$
693,506

Hartford SmallCap Growth HLS Fund
 
$
464,074

$
336,618

Hartford Stock HLS Fund
 
$
309,995

$
1,071,615

Hartford U.S. Government Securities HLS Fund
 
$
691,059

$
822,446

Hartford Value HLS Fund
 
$
179,292

$
368,352

Rational Dividend Capture VA Fund +
 
$
358,595

$
776,785

Rational Insider Buying VA Fund+
 
$
487,105

$
847,211

Lord Abbett Fundamental Equity Fund
 
$
190,182

$
282,728

Lord Abbett Calibrated Dividend Growth Fund
 
$
305,943

$
852,018

Lord Abbett Bond Debenture Fund
 
$
1,509,649

$
1,493,847

Lord Abbett Growth and Income Fund
 
$
199,121

$
409,260

MFS® Growth Fund
 
$
4,289,226

$
9,336,981

MFS® Global Equity Fund
 
$
999,200

$
1,384,570

MFS® Investors Trust Fund
 
$
3,627,901

$
11,246,943

MFS® Mid Cap Growth Fund
 
$
2,085,442

$
3,765,021

MFS® New Discovery Fund
 
$
1,504,291

$
7,071,983

MFS® Total Return Fund
 
$
11,002,525

$
30,696,344

MFS® Value Fund
 
$
7,977,621

$
15,754,620

MFS® Total Return Bond Series
 
$
10,630,238

$
15,572,109

MFS® Research Fund
 
$
1,043,503

$
1,083,829

MFS® High Yield Portfolio
 
$
5,554,563

$
6,989,671

BlackRock Global Allocation V.I. Fund
 
$
16,407

$
4,995

BlackRock Global Opportunities V.I. Fund
 
$
4,271

$
14,593

BlackRock Large Cap Focus Growth V.I. Fund+
 
$
60,216

$
193,252

BlackRock Equity Dividend V.I. Fund
 
$
81,425

$
151,509

Morgan Stanley VIF Core Plus Fixed Income Portfolio+
 
$
1,295

$
1,438

Morgan Stanley VIF Growth Portfolio+
 
$
29,537

$
71,700

Morgan Stanley VIF Mid Cap Growth Portfolio+
 
$
115,438

$
380,363

Invesco V.I. American Value Fund
 
$
327,115

$
258,193

Morgan Stanley Mid Cap Growth Portfolio+
 
$
2

$
160,405

BlackRock Capital Appreciation V.I. Fund
 
$
69,588

$
189,035

Columbia Variable Portfolio - Asset Allocation Fund
 
$
98,474

$
338,161

Columbia Variable Portfolio - Dividend Opportunity Fund
 
$
232,172

$
1,511,566

Columbia Variable Portfolio - Income Opportunities Fund
 
$
601,343

$
1,100,347

Columbia Variable Portfolio - Mid Cap Growth Fund
 
$
122,013

$
1,191,684

Oppenheimer Capital Appreciation Fund/VA
 
$
63,191

$
205,989

Oppenheimer Global Fund/VA
 
$
301,496

$
888,196

Oppenheimer Main Street Fund®/VA+
 
$
501,278

$
873,002

Oppenheimer Main Street Small Cap Fund/VA
 
$
424,365

$
1,171,545

Oppenheimer Equity Income Fund/VA+
 
$
6,016

$
292,512

Putnam VT Diversified Income Fund
 
$
1,340,738

$
2,342,685

Putnam VT Global Asset Allocation Fund
 
$
177,140

$
323,668

Putnam VT Growth Opportunities Fund
 
$
137,789

$
637,652

Putnam VT International Value Fund
 
$
979

$
88,677

Putnam VT International Equity Fund
 
$
41,386

$
78,764

Putnam VT Small Cap Value Fund
 
$
159,171

$
175,752

JPMorgan Insurance Trust Core Bond Portfolio
 
$
2,902,149

$
6,145,333

JPMorgan Insurance Trust U.S. Equity Portfolio
 
$
213,410

$
1,236,947

JPMorgan Insurance Trust Intrepid Mid Cap Portfolio+
 
$
51,906

$
6,056,482

JPMorgan Insurance Trust Mid Cap Value Portfolio
 
$
540,113

$
1,151,409

Putnam VT Equity Income Fund
 
$
6,628

$
5,562

PIMCO All Asset Fund
 
$
6,460

$
5,366

PIMCO StocksPLUS Global Portfolio
 
$
14,005

$
126,592

PIMCO Global Multi-Asset Managed Allocation Portfolio
 
$
46,943

$
15,355

Jennison 20/20 Focus Fund
 
$
—

$
31,433

Jennison Fund
 
$
7

$
14,708

Prudential Value Portfolio
 
$
—

$
28,987

Prudential SP International Growth Portfolio
 
$
—

$
5,841

ClearBridge Variable Dividend Strategy Portfolio
 
$
719

$
876

Western Asset Variable Global High Yield Bond Portfolio
 
$
2,311

$
1,888

ClearBridge Variable Large Cap Value Portfolio
 
$
30,512

$
92,321

Invesco V.I. Growth and Income Fund
 
$
154,269

$
437,773

Invesco V.I. Comstock Fund
 
$
83,168

$
90,429

Invesco V.I. American Franchise Fund
 
$
3,381,786

$
4,106,807

Invesco V.I. Mid Cap Growth Fund
 
$
970,254

$
1,281,749

Wells Fargo VT Index Asset Allocation Fund
 
$
1,343

$
1,186

Wells Fargo VT International Equity Fund
 
$
106,766

$
226,656

Wells Fargo VT Small Cap Growth Fund
 
$
96,273

$
205,914

Wells Fargo VT Discovery Fund
 
$
436

$
170

Wells Fargo VT Opportunity Fund
 
$
682,112

$
1,692,187

HIMCO VIT Index Fund
 
$
613,629

$
1,282,758

HIMCO VIT Portfolio Diversifier Fund
 
$
3,969,376

$
4,785,916

HIMCO VIT American Funds Asset Allocation Fund+
 
$
3,892,816

$
13,755,322

HIMCO VIT American Funds Blue Chip Income and Growth Fund+
 
$
2,089,930

$
6,539,911

HIMCO VIT American Funds Bond Fund+
 
$
3,141,786

$
25,312,335

HIMCO VIT American Funds Global Bond Fund+
 
$
340,821

$
2,491,903

HIMCO VIT American Funds Global Growth and Income Fund+
 
$
3,708,530

$
9,645,946

HIMCO VIT American Funds Global Growth Fund+
 
$
1,522,143

$
3,687,773

HIMCO VIT American Funds Global Small Capitalization Fund+
 
$
2,633,887

$
8,320,717

HIMCO VIT American Funds Growth Fund+
 
$
23,404,238

$
56,960,863

HIMCO VIT American Funds Growth-Income Fund+
 
$
12,436,825

$
29,900,924

HIMCO VIT American Funds International Fund+
 
$
10,376,707

$
34,531,305

HIMCO VIT American Funds New World Fund+
 
$
615,158

$
5,244,960

MFS® Core Equity Portfolio
 
$
599,207

$
939,011

MFS® Massachusetts Investors Growth Stock Portfolio
 
$
787,269

$
1,527,074

MFS® Research International Portfolio
 
$
816,777

$
2,878,204

Columbia Variable Portfolio - Large Cap Growth Fund
 
$
144,095

$
1,066,007

Columbia Variable Portfolio - Select International Equity Fund
 
$
249,204

$
981,061

Variable Portfolio - Loomis Sayles Growth Fund
 
$
119,076

$
780,233


+ See Note 1 for additional information related to this Sub-Account.

5. Changes in Units Outstanding:

The changes in units outstanding for the period ended December 31, 2017 were as follows:

Sub-Account
 
Units Issued
Units Redeemed
Net Increase/(Decrease)
American Century VP Value Fund
 
9,459

21,231

(11,772
)
American Century VP Growth Fund
 
637

1,024

(387
)
AB VPS Balanced Wealth Strategy Portfolio
 
15,777

53,933

(38,156
)
AB VPS International Value Portfolio
 
14,790

133,747

(118,957
)
AB VPS Small/Mid Cap Value Portfolio
 
12,194

29,279

(17,085
)
AB VPS Value Portfolio
 
333

2,407

(2,074
)
AB VPS International Growth Portfolio
 
12,120

22,533

(10,413
)
Invesco V.I. Value Opportunities Fund
 
735,279

2,183,557

(1,448,278
)
Invesco V.I. Core Equity Fund
 
59,784

321,954

(262,170
)
Invesco V.I. Government Securities Fund
 
7,022,809

13,288,078

(6,265,269
)
Invesco V.I. High Yield Fund
 
6,945

45,005

(38,060
)
Invesco V.I. International Growth Fund
 
747,725

2,516,032

(1,768,307
)
Invesco V.I. Mid Cap Core Equity Fund
 
602,569

2,440,500

(1,837,931
)
Invesco V.I. Small Cap Equity Fund
 
71,035

220,226

(149,191
)
Invesco V.I. Balanced Risk Allocation Fund
 
14,125

48,410

(34,285
)
Invesco V.I. Diversified Dividend Fund
 
—

30

(30
)
Invesco V.I. Government Money Market Fund
 
3,597,603

4,298,982

(701,379
)
American Century VP Mid Cap Value Fund
 
742

925

(183
)
American Funds Global Bond Fund
 
520,343

467,116

53,227

American Funds Global Growth and Income Fund
 
938,387

572,084

366,303

American Funds Asset Allocation Fund
 
1,239,051

1,223,354

15,697

American Funds Blue Chip Income and Growth Fund
 
2,943,908

8,543,623

(5,599,715
)
American Funds Bond Fund
 
2,804,909

1,354,682

1,450,227

American Funds Global Growth Fund
 
454,233

431,273

22,960

American Funds Growth Fund
 
4,854,655

3,479,506

1,375,149

American Funds Growth-Income Fund
 
2,812,154

2,675,172

136,982

American Funds International Fund
 
2,965,605

1,116,645

1,848,960

American Funds New World Fund
 
517,602

248,789

268,813

American Funds Global Small Capitalization Fund
 
707,920

304,692

403,228

Columbia Variable Portfolio - Small Company Growth Fund
 
19,246

323,299

(304,053
)
Wells Fargo VT Omega Growth Fund
 
97,455

226,757

(129,302
)
Fidelity® VIP Growth Portfolio
 
10,521

34,293

(23,772
)
Fidelity® VIP Contrafund® Portfolio
 
45,298

220,119

(174,821
)
Fidelity® VIP Mid Cap Portfolio
 
26,992

186,287

(159,295
)
Fidelity® VIP Value Strategies Portfolio
 
2,459

3,327

(868
)
Fidelity® VIP Dynamic Capital Appreciation Portfolio
 
1,190

6,284

(5,094
)
Fidelity® VIP Strategic Income Portfolio
 
271

188

83

Franklin Rising Dividends VIP Fund
 
184,072

1,212,264

(1,028,192
)
Franklin Income VIP Fund
 
393,953

3,038,244

(2,644,291
)
Franklin Large Cap Growth VIP Fund
 
121,835

285,280

(163,445
)
Franklin Global Real Estate VIP Fund
 
1,272

5,993

(4,721
)
Franklin Small-Mid Cap Growth VIP Fund
 
137,179

489,305

(352,126
)
Franklin Small Cap Value VIP Fund
 
78,953

287,765

(208,812
)
Franklin Strategic Income VIP Fund
 
337,180

870,004

(532,824
)
Franklin Mutual Shares VIP Fund
 
240,059

1,643,478

(1,403,419
)
Templeton Developing Markets VIP Fund
 
124,803

225,443

(100,640
)
Templeton Foreign VIP Fund
 
173,583

930,162

(756,579
)
Templeton Growth VIP Fund
 
163,353

1,244,613

(1,081,260
)
Franklin Mutual Global Discovery VIP Fund
 
95,207

368,545

(273,338
)
Franklin Flex Cap Growth VIP Fund
 
37,312

117,312

(80,000
)
Templeton Global Bond VIP Fund
 
72,701

191,662

(118,961
)
Hartford Balanced HLS Fund
 
157,764

693,590

(535,826
)
Hartford Total Return Bond HLS Fund
 
1,130,289

2,641,798

(1,511,509
)
Hartford Capital Appreciation HLS Fund
 
130,570

1,996,485

(1,865,915
)
Hartford Dividend and Growth HLS Fund
 
120,322

1,529,211

(1,408,889
)
Hartford Healthcare HLS Fund
 
55

6,514

(6,459
)
Hartford Global Growth HLS Fund
 
9,314

68,942

(59,628
)
Hartford Disciplined Equity HLS Fund
 
33,532

117,218

(83,686
)
Hartford Growth Opportunities HLS Fund
 
53,612

338,608

(284,996
)
Hartford High Yield HLS Fund
 
40,691

103,593

(62,902
)
Hartford International Opportunities HLS Fund
 
87,819

192,323

(104,504
)
Hartford Small/Mid Cap Equity HLS Fund
 
5,675

34,207

(28,532
)
Hartford MidCap HLS Fund
 
143

5,979

(5,836
)
Hartford MidCap Value HLS Fund
 
1,951

9,185

(7,234
)
Hartford Ultrashort Bond HLS Fund
 
5,320,370

12,266,545

(6,946,175
)
Hartford Small Company HLS Fund
 
11,840

95,755

(83,915
)
Hartford SmallCap Growth HLS Fund
 
18,732

12,712

6,020

Hartford Stock HLS Fund
 
43,740

461,020

(417,280
)
Hartford U.S. Government Securities HLS Fund
 
56,996

84,789

(27,793
)
Hartford Value HLS Fund
 
4,918

23,083

(18,165
)
Rational Dividend Capture VA Fund +
 
33,655

95,179

(61,524
)
Rational Insider Buying VA Fund+
 
9,282

277,061

(267,779
)
Lord Abbett Fundamental Equity Fund
 
3,343

12,594

(9,251
)
Lord Abbett Calibrated Dividend Growth Fund
 
4,807

42,275

(37,468
)
Lord Abbett Bond Debenture Fund
 
60,048

78,599

(18,551
)
Lord Abbett Growth and Income Fund
 
1,932

25,385

(23,453
)
MFS® Growth Fund
 
208,324

575,478

(367,154
)
MFS® Global Equity Fund
 
33,077

52,561

(19,484
)
MFS® Investors Trust Fund
 
91,447

605,772

(514,325
)
MFS® Mid Cap Growth Fund
 
119,966

349,143

(229,177
)
MFS® New Discovery Fund
 
53,192

300,321

(247,129
)
MFS® Total Return Fund
 
242,256

1,464,483

(1,222,227
)
MFS® Value Fund
 
168,210

586,361

(418,151
)
MFS® Total Return Bond Series
 
616,382

1,066,167

(449,785
)
MFS® Research Fund
 
34,044

46,297

(12,253
)
MFS® High Yield Portfolio
 
360,161

604,123

(243,962
)
BlackRock Global Allocation V.I. Fund
 
828

268

560

BlackRock Global Opportunities V.I. Fund
 
—

676

(676
)
BlackRock Large Cap Focus Growth V.I. Fund+
 
—

8,400

(8,400
)
BlackRock Equity Dividend V.I. Fund
 
1,918

8,000

(6,082
)
Morgan Stanley VIF Core Plus Fixed Income Portfolio+
 
—

62

(62
)
Morgan Stanley VIF Growth Portfolio+
 
373

3,646

(3,273
)
Morgan Stanley VIF Mid Cap Growth Portfolio+
 
7,538

22,849

(15,311
)
Invesco V.I. American Value Fund
 
17,659

13,714

3,945

Morgan Stanley Mid Cap Growth Portfolio+
 
—

9,787

(9,787
)
BlackRock Capital Appreciation V.I. Fund
 
603

10,605

(10,002
)
Columbia Variable Portfolio - Asset Allocation Fund
 
37,254

167,841

(130,587
)
Columbia Variable Portfolio - Dividend Opportunity Fund
 
17,474

95,674

(78,200
)
Columbia Variable Portfolio - Income Opportunities Fund
 
23,209

88,658

(65,449
)
Columbia Variable Portfolio - Mid Cap Growth Fund
 
8,977

71,935

(62,958
)
Oppenheimer Capital Appreciation Fund/VA
 
680

11,952

(11,272
)
Oppenheimer Global Fund/VA
 
16,339

48,188

(31,849
)
Oppenheimer Main Street Fund®/VA+
 
25,194

44,419

(19,225
)
Oppenheimer Main Street Small Cap Fund/VA
 
7,582

51,334

(43,752
)
Oppenheimer Equity Income Fund/VA+
 
—

20,584

(20,584
)
Putnam VT Diversified Income Fund
 
47,394

156,311

(108,917
)
Putnam VT Global Asset Allocation Fund
 
8,980

19,169

(10,189
)
Putnam VT Growth Opportunities Fund
 
8,304

51,161

(42,857
)
Putnam VT International Value Fund
 
46

10,622

(10,576
)
Putnam VT International Equity Fund
 
3,557

7,477

(3,920
)
Putnam VT Small Cap Value Fund
 
7,682

8,846

(1,164
)
JPMorgan Insurance Trust Core Bond Portfolio
 
160,220

416,257

(256,037
)
JPMorgan Insurance Trust U.S. Equity Portfolio
 
5,394

45,909

(40,515
)
JPMorgan Insurance Trust Intrepid Mid Cap Portfolio+
 
2,136

228,052

(225,916
)
JPMorgan Insurance Trust Mid Cap Value Portfolio
 
12,762

40,606

(27,844
)
Putnam VT Equity Income Fund
 
—

170

(170
)
PIMCO All Asset Fund
 
4

365

(361
)
PIMCO StocksPLUS Global Portfolio
 
19

9,594

(9,575
)
PIMCO Global Multi-Asset Managed Allocation Portfolio
 
4,211

1,382

2,829

Jennison 20/20 Focus Fund
 
—

4,016

(4,016
)
Jennison Fund
 
2

1,965

(1,963
)
Prudential Value Portfolio
 
—

15,323

(15,323
)
Prudential SP International Growth Portfolio
 
—

4,867

(4,867
)
ClearBridge Variable Dividend Strategy Portfolio
 
28

38

(10
)
Western Asset Variable Global High Yield Bond Portfolio
 
229

609

(380
)
ClearBridge Variable Large Cap Value Portfolio
 
2,466

35,239

(32,773
)
Invesco V.I. Growth and Income Fund
 
4,511

21,268

(16,757
)
Invesco V.I. Comstock Fund
 
2,970

3,748

(778
)
Invesco V.I. American Franchise Fund
 
118,960

215,231

(96,271
)
Invesco V.I. Mid Cap Growth Fund
 
52,793

79,837

(27,044
)
Wells Fargo VT Index Asset Allocation Fund
 
4

60

(56
)
Wells Fargo VT International Equity Fund
 
37,644

153,752

(116,108
)
Wells Fargo VT Small Cap Growth Fund
 
3,432

9,324

(5,892
)
Wells Fargo VT Discovery Fund
 
—

2

(2
)
Wells Fargo VT Opportunity Fund
 
4,363

82,256

(77,893
)
HIMCO VIT Index Fund
 
11,601

50,802

(39,201
)
HIMCO VIT Portfolio Diversifier Fund
 
518,105

646,364

(128,259
)
HIMCO VIT American Funds Asset Allocation Fund+
 
67,291

770,741

(703,450
)
HIMCO VIT American Funds Blue Chip Income and Growth Fund+
 
9,234

348,431

(339,197
)
HIMCO VIT American Funds Bond Fund+
 
223,499

2,232,918

(2,009,419
)
HIMCO VIT American Funds Global Bond Fund+
 
30,740

225,870

(195,130
)
HIMCO VIT American Funds Global Growth and Income Fund+
 
2,720

613,508

(610,788
)
HIMCO VIT American Funds Global Growth Fund+
 
29,042

202,723

(173,681
)
HIMCO VIT American Funds Global Small Capitalization Fund+
 
19,332

604,025

(584,693
)
HIMCO VIT American Funds Growth Fund+
 
76,528

2,875,143

(2,798,615
)
HIMCO VIT American Funds Growth-Income Fund+
 
68,897

1,575,110

(1,506,213
)
HIMCO VIT American Funds International Fund+
 
141,817

2,791,052

(2,649,235
)
HIMCO VIT American Funds New World Fund+
 
24,573

410,797

(386,224
)
MFS® Core Equity Portfolio
 
23,528

69,990

(46,462
)
MFS® Massachusetts Investors Growth Stock Portfolio
 
41,460

124,783

(83,323
)
MFS® Research International Portfolio
 
65,746

260,317

(194,571
)
Columbia Variable Portfolio - Large Cap Growth Fund
 
12,710

76,171

(63,461
)
Columbia Variable Portfolio - Select International Equity Fund
 
14,598

78,675

(64,077
)
Variable Portfolio - Loomis Sayles Growth Fund
 
9,903

54,241

(44,338
)

+ See Note 1 for additional information related to this Sub-Account.

The changes in units outstanding for the period ended December 31, 2016 were as follows:

Sub-Account
 
Units Issued
Units Redeemed
Net Increase/(Decrease)
American Century VP Value Fund
 
11,178

43,120

(31,942
)
American Century VP Growth Fund
 
518

633

(115
)
AB VPS Balanced Wealth Strategy Portfolio
 
18,733

73,191

(54,458
)
AB VPS International Value Portfolio
 
81,532

225,308

(143,776
)
AB VPS Small/Mid Cap Value Portfolio
 
25,462

18,392

7,070

AB VPS Value Portfolio
 
281

2,580

(2,299
)
AB VPS International Growth Portfolio
 
5,044

16,318

(11,274
)
Invesco V.I. Value Opportunities Fund
 
537,632

1,980,434

(1,442,802
)
Invesco V.I. Core Equity Fund
 
69,731

524,640

(454,909
)
Invesco V.I. Government Securities Fund
 
8,234,025

17,383,772

(9,149,747
)
Invesco V.I. High Yield Fund
 
4,051

123,822

(119,771
)
Invesco V.I. International Growth Fund
 
866,935

2,913,415

(2,046,480
)
Invesco V.I. Mid Cap Core Equity Fund
 
1,079,822

3,203,997

(2,124,175
)
Invesco V.I. Small Cap Equity Fund
 
89,775

282,557

(192,782
)
Invesco V.I. Balanced Risk Allocation Fund
 
22,387

60,417

(38,030
)
Invesco V.I. Diversified Dividend Fund
 
—

32

(32
)
Invesco V.I. Government Money Market Fund
 
5,403,685

4,989,624

414,061

American Century VP Mid Cap Value Fund
 
32

849

(817
)
American Funds Global Bond Fund
 
254,006

575,034

(321,028
)
American Funds Global Growth and Income Fund
 
94,346

588,983

(494,637
)
American Funds Asset Allocation Fund
 
502,770

1,543,581

(1,040,811
)
American Funds Blue Chip Income and Growth Fund
 
6,569,184

10,250,944

(3,681,760
)
American Funds Bond Fund
 
549,568

1,884,186

(1,334,618
)
American Funds Global Growth Fund
 
93,299

609,235

(515,936
)
American Funds Growth Fund
 
538,477

3,965,579

(3,427,102
)
American Funds Growth-Income Fund
 
498,022

3,335,295

(2,837,273
)
American Funds International Fund
 
218,987

1,053,927

(834,940
)
American Funds New World Fund
 
75,746

264,839

(189,093
)
American Funds Global Small Capitalization Fund
 
64,147

353,905

(289,758
)
Columbia Variable Portfolio - Small Company Growth Fund
 
138,150

395,007

(256,857
)
Wells Fargo VT Omega Growth Fund
 
20,065

145,088

(125,023
)
Fidelity® VIP Growth Portfolio
 
18,346

20,604

(2,258
)
Fidelity® VIP Contrafund® Portfolio
 
55,426

304,003

(248,577
)
Fidelity® VIP Mid Cap Portfolio
 
40,370

199,858

(159,488
)
Fidelity® VIP Value Strategies Portfolio
 
1,209

9,976

(8,767
)
Fidelity® VIP Dynamic Capital Appreciation Portfolio
 
6,499

10,571

(4,072
)
Fidelity® VIP Strategic Income Portfolio
 
171

2,316

(2,145
)
Franklin Rising Dividends VIP Fund
 
438,370

1,433,762

(995,392
)
Franklin Income VIP Fund
 
395,354

4,001,770

(3,606,416
)
Franklin Large Cap Growth VIP Fund
 
138,606

462,814

(324,208
)
Franklin Global Real Estate VIP Fund
 
4,737

4,561

176

Franklin Small-Mid Cap Growth VIP Fund
 
184,185

647,268

(463,083
)
Franklin Small Cap Value VIP Fund
 
284,702

307,947

(23,245
)
Franklin Strategic Income VIP Fund
 
258,391

1,421,427

(1,163,036
)
Franklin Mutual Shares VIP Fund
 
236,754

2,307,102

(2,070,348
)
Templeton Developing Markets VIP Fund
 
115,670

260,971

(145,301
)
Templeton Foreign VIP Fund
 
389,985

1,144,689

(754,704
)
Templeton Growth VIP Fund
 
273,270

1,674,254

(1,400,984
)
Franklin Mutual Global Discovery VIP Fund
 
105,553

530,738

(425,185
)
Franklin Flex Cap Growth VIP Fund
 
57,780

198,092

(140,312
)
Templeton Global Bond VIP Fund
 
70,217

199,646

(129,429
)
Hartford Balanced HLS Fund
 
119,556

969,525

(849,969
)
Hartford Total Return Bond HLS Fund
 
814,455

3,971,144

(3,156,689
)
Hartford Capital Appreciation HLS Fund
 
383,067

2,372,568

(1,989,501
)
Hartford Dividend and Growth HLS Fund
 
415,924

1,882,383

(1,466,459
)
Hartford Healthcare HLS Fund
 
65

9,137

(9,072
)
Hartford Global Growth HLS Fund
 
19,275

39,213

(19,938
)
Hartford Disciplined Equity HLS Fund
 
73,020

168,917

(95,897
)
Hartford Growth Opportunities HLS Fund
 
72,310

425,229

(352,919
)
Hartford High Yield HLS Fund
 
59,700

127,176

(67,476
)
Hartford International Opportunities HLS Fund
 
85,463

308,482

(223,019
)
Hartford Small/Mid Cap Equity HLS Fund
 
21,939

34,519

(12,580
)
Hartford MidCap HLS Fund
 
256

35,717

(35,461
)
Hartford MidCap Value HLS Fund
 
4,104

36,622

(32,518
)
Hartford Ultrashort Bond HLS Fund
 
6,060,206

13,589,918

(7,529,712
)
Hartford Small Company HLS Fund
 
68,267

138,550

(70,283
)
Hartford SmallCap Growth HLS Fund
 
18,266

23,111

(4,845
)
Hartford Stock HLS Fund
 
97,211

682,249

(585,038
)
Hartford U.S. Government Securities HLS Fund
 
271,216

310,359

(39,143
)
Hartford Value HLS Fund
 
3,725

17,812

(14,087
)
Catalyst Dividend Capture VA Fund
 
20,514

223,543

(203,029
)
Catalyst Insider Buying VA Fund
 
26,853

415,246

(388,393
)
Lord Abbett Fundamental Equity Fund
 
8,030

26,285

(18,255
)
Lord Abbett Calibrated Dividend Growth Fund
 
40,553

80,489

(39,936
)
Lord Abbett Bond Debenture Fund
 
33,972

152,925

(118,953
)
Lord Abbett Growth and Income Fund
 
7,117

31,520

(24,403
)
MFS® Growth Fund
 
293,647

597,286

(303,639
)
MFS® Global Equity Fund
 
38,300

66,283

(27,983
)
MFS® Investors Trust Fund
 
91,042

647,712

(556,670
)
MFS® Mid Cap Growth Fund
 
178,353

876,950

(698,597
)
MFS® New Discovery Fund
 
91,194

346,070

(254,876
)
MFS® Total Return Fund
 
329,678

1,650,744

(1,321,066
)
MFS® Value Fund
 
187,545

701,884

(514,339
)
MFS® Total Return Bond Series
 
793,594

1,549,993

(756,399
)
MFS® Research Fund
 
20,285

51,097

(30,812
)
MFS® High Yield Portfolio
 
437,304

882,882

(445,578
)
BlackRock Global Allocation V.I. Fund
 
216

6,853

(6,637
)
BlackRock Global Opportunities V.I. Fund
 
—

148

(148
)
BlackRock Large Cap Growth V.I. Fund
 
2,955

4,871

(1,916
)
BlackRock Equity Dividend V.I. Fund
 
3,398

13,326

(9,928
)
UIF Core Plus Fixed Income Portfolio
 
—

68

(68
)
UIF Growth Portfolio
 
944

1,267

(323
)
UIF Mid Cap Growth Portfolio
 
7,471

22,659

(15,188
)
Invesco V.I. American Value Fund
 
14,857

7,516

7,341

Morgan Stanley Mid Cap Growth Portfolio
 
1,665

740

925

BlackRock Capital Appreciation V.I. Fund
 
4,669

8,585

(3,916
)
Columbia Variable Portfolio - Asset Allocation Fund
 
8,490

596,294

(587,804
)
Columbia Variable Portfolio - Dividend Opportunity Fund
 
20,388

106,120

(85,732
)
Columbia Variable Portfolio - Income Opportunities Fund
 
41,529

102,891

(61,362
)
Columbia Variable Portfolio - Mid Cap Growth Fund
 
12,608

93,895

(81,287
)
Oppenheimer Capital Appreciation Fund/VA
 
1,892

25,931

(24,039
)
Oppenheimer Global Fund/VA
 
7,322

91,155

(83,833
)
Oppenheimer Main Street Fund®/VA
 
38,203

7,607

30,596

Oppenheimer Main Street Small Cap Fund/VA
 
12,432

57,011

(44,579
)
Oppenheimer Equity Income Fund/VA
 
195

2,185

(1,990
)
Putnam VT Diversified Income Fund
 
55,683

245,967

(190,284
)
Putnam VT Global Asset Allocation Fund
 
16,146

14,023

2,123

Putnam VT Growth Opportunities Fund
 
191,140

7,010

184,130

Putnam VT International Value Fund
 
91

8,247

(8,156
)
Putnam VT International Equity Fund
 
4,081

20,454

(16,373
)
Putnam VT Small Cap Value Fund
 
4,787

1,199

3,588

JPMorgan Insurance Trust Core Bond Portfolio
 
132,126

576,884

(444,758
)
JPMorgan Insurance Trust U.S. Equity Portfolio
 
6,940

50,681

(43,741
)
JPMorgan Insurance Trust Intrepid Mid Cap Portfolio
 
5,594

49,051

(43,457
)
JPMorgan Insurance Trust Mid Cap Value Portfolio
 
10,029

40,425

(30,396
)
Putnam VT Equity Income Fund
 
82

3,240

(3,158
)
PIMCO All Asset Fund
 
26

589

(563
)
PIMCO StocksPLUS Global Portfolio
 
4,494

11,575

(7,081
)
PIMCO Global Multi-Asset Managed Allocation Portfolio
 
4

293

(289
)
Jennison 20/20 Focus Fund
 
1

3,386

(3,385
)
Jennison Fund
 
114

2,051

(1,937
)
Prudential Value Portfolio
 
—

2,049

(2,049
)
Prudential SP International Growth Portfolio
 
—

316

(316
)
ClearBridge Variable Dividend Strategy Portfolio
 
55

484

(429
)
Western Asset Variable Global High Yield Bond Portfolio
 
282

6,557

(6,275
)
ClearBridge Variable Large Cap Value Portfolio
 
2,900

48,798

(45,898
)
Invesco V.I. Growth and Income Fund
 
6,162

11,149

(4,987
)
Invesco V.I. Comstock Fund
 
26

2,072

(2,046
)
Invesco V.I. American Franchise Fund
 
75,304

255,260

(179,956
)
Invesco V.I. Mid Cap Growth Fund
 
39,802

94,693

(54,891
)
Wells Fargo VT Index Asset Allocation Fund
 
59

102

(43
)
Wells Fargo VT International Equity Fund
 
49,717

162,123

(112,406
)
Wells Fargo VT Small Cap Growth Fund
 
6,365

20,630

(14,265
)
Wells Fargo VT Discovery Fund
 
—

3

(3
)
Wells Fargo VT Opportunity Fund
 
12,310

108,086

(95,776
)
HIMCO VIT Index Fund
 
40,279

221,182

(180,903
)
HIMCO VIT Portfolio Diversifier Fund
 
881,986

1,382,013

(500,027
)
HIMCO VIT American Funds Asset Allocation Fund
 
94,100

199,981

(105,881
)
HIMCO VIT American Funds Blue Chip Income and Growth Fund
 
60,500

95,153

(34,653
)
HIMCO VIT American Funds Bond Fund
 
134,031

427,000

(292,969
)
HIMCO VIT American Funds Global Bond Fund
 
49,652

65,721

(16,069
)
HIMCO VIT American Funds Global Growth and Income Fund
 
16,999

135,551

(118,552
)
HIMCO VIT American Funds Global Growth Fund
 
32,416

38,834

(6,418
)
HIMCO VIT American Funds Global Small Capitalization Fund
 
45,689

139,682

(93,993
)
HIMCO VIT American Funds Growth Fund
 
78,968

766,595

(687,627
)
HIMCO VIT American Funds Growth-Income Fund
 
58,270

365,646

(307,376
)
HIMCO VIT American Funds International Fund
 
220,505

703,496

(482,991
)
HIMCO VIT American Funds New World Fund
 
46,578

124,590

(78,012
)
MFS® Core Equity Portfolio
 
20,345

78,449

(58,104
)
MFS® Massachusetts Investors Growth Stock Portfolio
 
84,775

143,674

(58,899
)
MFS® Research International Portfolio
 
88,257

261,357

(173,100
)
Columbia Variable Portfolio - Large Cap Growth Fund
 
685,074

44,254

640,820

Columbia Variable Portfolio - Select International Equity Fund
 
570,397

59,638

510,759

Variable Portfolio - Loomis Sayles Growth Fund
 
496,612

44,366

452,246





6. Financial Highlights:

The following is a summary of units, unit fair values, net assets, expense ratios, investment income ratios, and total return ratios as of or for each of the periods presented for the aggregate of all share classes within each Sub- Account that had outstanding units during the period ended December 31, 2017. The ranges presented are calculated using the results of only the contracts with the highest and lowest expense ratios. A specific unit value or ratio may be outside of the range presented in this table due to the initial assigned unit values, combined with varying performance and/or length of time since inception of the presented expense ratios. Investment income and total return ratios are calculated for the period the related share class within the Sub-Account is active, while the expense ratio is annualized. In the case of fund mergers, the expense, investment income, and total return ratios are calculated using only the results of the surviving fund and exclude the results of the fund merged into the surviving fund. For the fund merged into the surviving fund the results are through the date of the fund merger.

 
 
 Units #
 Unit
Fair Value
Lowest to Highest #
 Net Assets
Expense
Ratio Lowest to Highest*
Investment
Income
Ratio Lowest to Highest**
Total Return Ratio
Lowest to Highest***
American Century VP Value Fund
 
2017
90,449

$19.222298

to
$20.503245
$1,841,868
0.50
%
to
1.45%
1.50
%
to
1.52%
7.01
 %
to
8.03%
 
2016
102,221

$17.962488

to
$18.978389
$1,933,623
0.50
%
to
1.45%
1.26
%
to
1.58%
18.55
 %
to
19.68%
 
2015
134,163

$15.152060

to
$15.857703
$2,124,718
0.50
%
to
1.45%
1.97
%
to
1.99%
(5.41
)%
to
(4.50)%
 
2014
145,663

$16.018012

to
$16.605429
$2,421,509
0.50
%
to
1.45%
1.38
%
to
1.45%
11.27
 %
to
12.33%
 
2013
164,839

$14.395666

to
$14.782510
$2,445,633
0.50
%
to
1.45%
1.26
%
to
1.49%
29.59
 %
to
30.83%
American Century VP Growth Fund
 
2017
4,847

$20.200979

to
$20.200979
$97,907
0.65
%
to
0.65%
0.63
%
to
0.63%
29.38
 %
to
29.38%
 
2016
5,234

$15.613557

to
$15.613557
$81,729
0.65
%
to
0.65%
—
%
to
—%
3.52
 %
to
3.52%
 
2015
5,349

$15.082330

to
$15.082330
$80,675
0.65
%
to
0.65%
0.32
%
to
0.32%
3.87
 %
to
3.87%
 
2014
5,698

$14.519721

to
$14.519721
$82,740
0.65
%
to
0.65%
0.22
%
to
0.22%
10.35
 %
to
10.35%
 
2013
6,404

$13.158033

to
$13.158033
$84,260
0.65
%
to
0.65%
0.32
%
to
0.32%
28.09
 %
to
28.09%
AB VPS Balanced Wealth Strategy Portfolio
 
2017
282,012

$18.929797

to
$21.039797
$4,424,886
0.50
%
to
2.70%
1.82
%
to
1.82%
12.54
 %
to
15.05%
 
2016
320,168

$16.819960

to
$18.288255
$4,357,815
0.50
%
to
2.70%
1.81
%
to
1.82%
1.66
 %
to
3.92%
 
2015
374,626

$16.545243

to
$17.598041
$4,904,242
0.50
%
to
2.70%
1.08
%
to
1.98%
(1.40
)%
to
0.79%
 
2014
429,246

$16.781011

to
$17.460347
$5,609,903
0.50
%
to
2.70%
1.94
%
to
2.40%
4.26
 %
to
6.58%
 
2013
483,738

$16.095837

to
$16.383105
$5,959,909
0.50
%
to
2.70%
2.24
%
to
2.25%
13.18
 %
to
15.69%
AB VPS International Value Portfolio
 
2017
575,458

$15.643661

to
$16.752424
$4,943,871
0.50
%
to
2.70%
2.02
%
to
2.24%
21.76
 %
to
24.47%
 
2016
694,415

$12.847489

to
$13.458962
$4,843,999
0.50
%
to
2.70%
1.09
%
to
1.16%
(3.44
)%
to
(1.29)%
 
2015
838,191

$13.305686

to
$13.635361
$5,971,620
0.50
%
to
2.70%
1.80
%
to
2.31%
(0.33
)%
to
1.89%
 
2014
943,230

$7.256387

to
$13.349315
$6,632,784
0.85
%
to
2.70%
3.18
%
to
3.34%
(8.95
)%
to
(7.25)%
 
2013
1,010,778

$7.823764

to
$14.661951
$7,711,067
0.85
%
to
2.70%
5.69
%
to
5.85%
19.46
 %
to
21.69%
AB VPS Small/Mid Cap Value Portfolio
 
2017
79,290

$33.180411

to
$34.562643
$1,891,389
0.50
%
to
2.75%
0.24
%
to
0.25%
9.79
 %
to
12.29%
 
2016
96,375

$30.221710

to
$30.780680
$2,065,868
0.50
%
to
2.75%
0.36
%
to
0.36%
21.41
 %
to
24.17%
 
2015
89,305

$24.789138

to
$24.892381
$1,563,766
0.50
%
to
2.75%
0.52
%
to
0.52%
(8.25
)%
to
(6.16)%
 
2014
104,471

$26.417593

to
$27.131691
$1,958,260
0.50
%
to
2.75%
0.46
%
to
0.47%
5.99
 %
to
8.40%
 
2013
160,517

$24.369798

to
$25.663136
$2,785,675
0.50
%
to
2.70%
0.41
%
to
0.42%
33.97
 %
to
36.95%
AB VPS Value Portfolio
 
2017
16,000

$13.516541

to
$15.208808
$238,336
1.25
%
to
2.45%
1.12
%
to
1.14%
10.55
 %
to
11.89%
 
2016
18,074

$12.226389

to
$13.593127
$241,028
1.25
%
to
2.45%
1.45
%
to
1.45%
8.60
 %
to
9.91%
 
2015
20,373

$11.258625

to
$12.367875
$247,525
1.25
%
to
2.45%
1.84
%
to
1.91%
(9.42
)%
to
(8.32)%
 
2014
31,224

$12.429218

to
$13.490786
$412,812
1.25
%
to
2.45%
1.12
%
to
1.56%
8.09
 %
to
9.40%
 
2013
30,135

$11.498544

to
$12.331802
$366,054
1.25
%
to
2.45%
2.22
%
to
2.24%
33.19
 %
to
34.80%
AB VPS International Growth Portfolio
 
2017
59,347

$10.109732

to
$17.450543
$611,154
1.25
%
to
2.70%
0.87
%
to
0.95%
31.05
 %
to
32.96%
 
2016
69,760

$7.603435

to
$13.315844
$541,877
1.25
%
to
2.70%
—
%
to
—%
(9.55
)%
to
(8.22)%
 
2015
81,034

$8.284833

to
$14.721312
$685,378
1.25
%
to
2.70%
0.06
%
to
0.06%
(4.78
)%
to
(3.39)%
 
2014
92,219

$8.575540

to
$15.460592
$805,146
1.25
%
to
2.70%
—
%
to
—%
(4.04
)%
to
(2.64)%
 
2013
145,870

$8.808059

to
$16.111731
$1,288,825
1.25
%
to
2.70%
0.60
%
to
0.71%
10.30
 %
to
11.91%
Invesco V.I. Value Opportunities Fund
 
2017
8,398,891

$2.196079

to
$25.756336
$15,999,970
0.85
%
to
2.80%
0.40
%
to
0.40%
14.20
 %
to
16.44%
 
2016
9,847,169

$1.885957

to
$22.554491
$16,246,582
0.85
%
to
2.80%
0.39
%
to
0.41%
15.07
 %
to
17.33%
 
2015
11,289,971

$1.607345

to
$19.600856
$16,023,213
0.85
%
to
2.80%
2.56
%
to
2.70%
(12.88
)%
to
(11.16)%
 
2014
13,353,650

$1.809334

to
$22.498793
$21,512,109
0.85
%
to
2.80%
1.41
%
to
1.47%
3.68
 %
to
5.72%
 
2013
17,709,099

$1.711493

to
$21.756431
$27,217,711
0.85
%
to
2.75%
0.98
%
to
1.49%
30.13
 %
to
32.62%
Invesco V.I. Core Equity Fund
 
2017
1,840,303

$20.884186

to
$23.263545
$30,798,707
0.50
%
to
2.75%
0.80
%
to
1.04%
10.11
 %
to
12.31%
 
2016
2,102,473

$18.967298

to
$21.026178
$31,902,428
0.30
%
to
2.75%
—
%
to
0.79%
7.27
 %
to
9.69%
 
2015
2,557,382

$17.681405

to
$19.168832
$35,916,480
0.30
%
to
2.75%
—
%
to
0.93%
(8.33
)%
to
(6.28)%
 
2014
3,037,572

$19.287606

to
$20.230349
$45,804,800
0.50
%
to
2.75%
0.67
%
to
1.01%
5.21
 %
to
7.31%
 
2013
3,883,837

$18.331860

to
$18.852457
$54,978,053
0.50
%
to
2.75%
1.25
%
to
2.12%
25.75
 %
to
28.29%
Invesco V.I. Government Securities Fund
 
2017
65,970,861

$1.503200

to
$9.824279
$87,071,468
0.85
%
to
2.80%
2.10
%
to
2.12%
(0.86
)%
to
1.09%
 
2016
72,236,130

$1.486940

to
$9.909381
$95,179,434
0.85
%
to
2.80%
1.89
%
to
1.95%
(1.57
)%
to
0.37%
 
2015
81,385,877

$1.481433

to
$10.067115
$107,843,967
0.85
%
to
2.80%
1.40
%
to
2.28%
(2.43
)%
to
(0.50)%
 
2014
103,274,459

$1.488940

to
$10.317394
$139,060,173
0.85
%
to
2.80%
3.16
%
to
3.23%
1.26
 %
to
3.26%
 
2013
126,681,678

$1.441994

to
$10.188828
$166,630,318
0.85
%
to
2.80%
4.01
%
to
5.85%
(5.31
)%
to
(3.45)%
Invesco V.I. High Yield Fund
 
2017
127,229

$2.107655

to
$21.085280
$508,937
1.70
%
to
2.75%
3.98
%
to
4.07%
3.42
 %
to
4.51%
 
2016
165,289

$2.016745

to
$20.388679
$580,337
1.70
%
to
2.75%
4.06
%
to
4.20%
8.20
 %
to
9.34%
 
2015
285,060

$1.844510

to
$18.844144
$700,922
1.70
%
to
2.75%
0.31
%
to
5.36%
(5.79
)%
to
(4.80)%
 
2014
359,934

$1.937487

to
$20.003014
$926,477
1.70
%
to
2.75%
4.00
%
to
4.63%
(1.03
)%
to
0.01%
 
2013
496,894

$1.937261

to
$20.211788
$1,200,328
1.70
%
to
2.75%
4.05
%
to
5.05%
4.11
 %
to
5.20%
Invesco V.I. International Growth Fund
 
2017
9,693,455

$19.425716

to
$20.221611
$34,441,109
0.30
%
to
2.80%
—
%
to
1.44%
19.61
 %
to
22.36%
 
2016
11,461,762

$16.241116

to
$16.526576
$34,208,224
0.30
%
to
2.80%
—
%
to
1.42%
(3.20
)%
to
(0.99)%
 
2015
13,508,242

$16.476877

to
$16.778451
$40,865,876
0.50
%
to
2.80%
1.33
%
to
1.49%
(5.04
)%
to
(3.10)%
 
2014
16,785,585

$17.192346

to
$17.669116
$51,365,321
0.30
%
to
2.80%
1.38
%
to
1.56%
(2.44
)%
to
(0.21)%
 
2013
20,743,931

$17.228480

to
$18.110799
$62,425,737
0.30
%
to
2.80%
—
%
to
1.24%
15.73
 %
to
18.36%
Invesco V.I. Mid Cap Core Equity Fund
 
2017
11,917,687

$20.685989

to
$22.473592
$32,149,013
0.65
%
to
2.80%
0.32
%
to
0.53%
11.75
 %
to
13.91%
 
2016
13,755,618

$18.511422

to
$20.254163
$32,861,252
0.30
%
to
2.80%
—
%
to
0.08%
10.30
 %
to
12.82%
 
2015
15,879,793

$16.782407

to
$17.952080
$34,142,445
0.30
%
to
2.80%
—
%
to
0.35%
(6.68
)%
to
(4.57)%
 
2014
19,409,413

$17.983581

to
$18.605354
$44,250,479
0.50
%
to
2.80%
—
%
to
0.04%
1.55
 %
to
3.65%
 
2013
24,198,821

$17.754014

to
$17.950074
$53,794,965
0.50
%
to
2.75%
0.51
%
to
0.72%
25.32
 %
to
27.82%
Invesco V.I. Small Cap Equity Fund
 
2017
933,454

$24.335556

to
$27.508052
$22,532,980
0.30
%
to
2.80%
—
%
to
—%
10.91
 %
to
13.39%
 
2016
1,082,645

$21.942004

to
$24.260672
$23,354,664
0.30
%
to
2.80%
—
%
to
—%
8.97
 %
to
11.50%
 
2015
1,275,427

$20.135646

to
$21.757791
$25,063,705
0.30
%
to
2.80%
—
%
to
—%
(8.13
)%
to
(6.02)%
 
2014
1,560,844

$21.917230

to
$22.898847
$33,214,501
0.50
%
to
2.80%
—
%
to
—%
(0.47
)%
to
1.58%
 
2013
1,874,297

$22.019679

to
$22.543528
$39,908,287
0.50
%
to
2.80%
—
%
to
0.01%
33.68
 %
to
36.40%
Invesco V.I. Balanced Risk Allocation Fund
 
2017
109,910

$13.062314

to
$14.861220
$1,531,700
0.50
%
to
2.40%
3.88
%
to
4.13%
7.23
 %
to
9.28%
 
2016
144,195

$12.181854

to
$13.598736
$1,847,282
0.50
%
to
2.40%
0.15
%
to
0.18%
8.87
 %
to
10.96%
 
2015
182,225

$11.189212

to
$12.255624
$2,128,861
0.50
%
to
2.40%
3.89
%
to
3.93%
(6.67
)%
to
(4.88)%
 
2014
243,094

$11.853050

to
$12.883948
$3,014,688
0.50
%
to
2.70%
—
%
to
—%
2.89
 %
to
5.18%
 
2013
369,128

$11.519666

to
$12.249085
$4,386,691
0.50
%
to
2.70%
1.37
%
to
1.50%
(1.28
)%
to
0.91%
Invesco V.I. Diversified Dividend Fund
 
2017
394

$19.204376

to
$19.204376
$7,564
1.70
%
to
1.70%
1.50
%
to
1.50%
6.52
 %
to
6.52%
 
2016
424

$18.028771

to
$18.028771
$7,639
1.70
%
to
1.70%
1.15
%
to
1.15%
12.61
 %
to
12.61%
 
2015
456

$16.010378

to
$16.010378
$7,294
1.70
%
to
1.70%
1.51
%
to
1.51%
0.10
 %
to
0.10%
 
2014
487

$15.994424

to
$15.994424
$7,792
1.70
%
to
1.70%
1.51
%
to
1.51%
10.64
 %
to
10.64%
 
2013
520

$14.456478

to
$14.456478
$7,517
1.70
%
to
1.70%
2.11
%
to
2.11%
28.56
 %
to
28.56%
Invesco V.I. Government Money Market Fund
 
2017
5,269,921

$8.876326

to
$9.901669
$49,089,284
0.30
%
to
2.75%
0.30
%
to
0.64%
(2.16
)%
to
0.01%
 
2016
5,971,300

$9.072730

to
$9.900264
$56,196,085
0.30
%
to
2.75%
0.02
%
to
0.09%
(2.62
)%
to
(0.27)%
 
2015
5,557,239

$9.328886

to
$9.875737
$53,237,584
0.50
%
to
2.70%
0.01
%
to
0.01%
(2.65
)%
to
(0.49)%
 
2014
6,011,140

$9.575557

to
$9.924169
$58,575,866
0.50
%
to
2.75%
0.01
%
to
0.01%
(2.70
)%
to
(0.49)%
 
2013
2,143,849

$9.844166

to
$9.963797
$21,229,172
0.65
%
to
2.70%
—
%
to
—%
(1.56
)%
to
(0.36)%
American Century VP Mid Cap Value Fund
 
2017
6,844

$20.941448

to
$22.362747
$151,362
0.50
%
to
1.45%
1.40
%
to
1.40%
9.86
 %
to
10.91%
 
2016
7,027

$19.061376

to
$20.162741
$140,836
0.50
%
to
1.45%
1.55
%
to
1.57%
20.95
 %
to
22.11%
 
2015
7,844

$15.759549

to
$16.512615
$128,925
0.50
%
to
1.45%
1.50
%
to
1.51%
(3.00
)%
to
(2.07)%
 
2014
7,251

$16.246439

to
$16.861730
$121,938
0.50
%
to
1.45%
1.04
%
to
1.04%
14.57
 %
to
15.66%
 
2013
5,120

$14.180887

to
$14.578868
$74,713
0.50
%
to
1.45%
0.92
%
to
1.06%
28.03
 %
to
29.25%
American Funds Global Bond Fund
 
2017
2,099,339

$9.998043

to
$11.113629
$25,833,116
0.50
%
to
2.75%
0.36
%
to
0.42%
(0.02
)%
to
3.96%
 
2016
2,046,112

$10.690698

to
$13.232531
$24,561,109
0.85
%
to
2.75%
0.55
%
to
0.56%
(0.07
)%
to
1.85%
 
2015
2,367,140

$10.698377

to
$12.992812
$28,150,075
0.85
%
to
2.75%
0.06
%
to
0.06%
(6.67
)%
to
(4.88)%
 
2014
3,130,737

$11.462756

to
$13.659029
$39,592,692
0.85
%
to
2.75%
0.97
%
to
1.39%
(1.36
)%
to
0.53%
 
2013
3,877,209

$11.620917

to
$13.586871
$49,307,481
0.85
%
to
2.75%
—
%
to
—%
(5.22
)%
to
(3.40)%
American Funds Global Growth and Income Fund
 
2017
3,146,861

$10.670657

to
$24.762218
$51,339,431
0.50
%
to
2.80%
1.83
%
to
2.10%
6.71
 %
to
22.59%
 
2016
2,780,558

$15.982931

to
$20.199758
$40,552,639
0.85
%
to
2.80%
1.79
%
to
1.85%
4.38
 %
to
6.44%
 
2015
3,275,195

$15.016349

to
$19.351769
$45,245,756
0.85
%
to
2.80%
1.74
%
to
1.93%
(4.07
)%
to
(2.18)%
 
2014
4,010,516

$15.350420

to
$20.172002
$57,173,603
0.85
%
to
2.80%
3.12
%
to
3.55%
2.72
 %
to
4.75%
 
2013
5,126,259

$14.654969

to
$19.637414
$70,429,149
0.85
%
to
2.80%
2.92
%
to
3.31%
19.15
 %
to
21.50%
American Funds Asset Allocation Fund
 
2017
7,490,631

$10.469884

to
$22.139871
$159,190,876
0.50
%
to
2.75%
1.06
%
to
1.67%
4.70
 %
to
13.08%
 
2016
7,474,934

$19.579122

to
$24.149417
$148,582,358
0.85
%
to
2.75%
1.52
%
to
1.60%
6.44
 %
to
8.48%
 
2015
8,515,745

$18.394082

to
$22.260837
$157,779,281
0.85
%
to
2.75%
1.30
%
to
1.75%
(1.35
)%
to
0.54%
 
2014
10,326,749

$18.646081

to
$22.141052
$192,713,621
0.85
%
to
2.75%
1.46
%
to
1.92%
2.54
 %
to
4.50%
 
2013
12,666,696

$18.184798

to
$21.186874
$228,180,458
0.85
%
to
2.75%
1.51
%
to
1.57%
20.34
 %
to
22.64%
American Funds Blue Chip Income and Growth Fund
 
2017
39,821,581

$10.915463

to
$27.019907
$89,031,387
0.50
%
to
2.80%
0.33
%
to
1.53%
9.15
 %
to
13.81%
 
2016
45,421,296

$2.104686

to
$23.741193
$84,142,065
0.85
%
to
2.80%
1.93
%
to
1.99%
15.42
 %
to
17.70%
 
2015
49,103,056

$1.788240

to
$20.568725
$78,142,230
0.85
%
to
2.80%
1.53
%
to
1.79%
(5.61
)%
to
(3.75)%
 
2014
60,912,481

$1.857941

to
$21.857895
$101,517,836
0.85
%
to
2.75%
2.78
%
to
2.96%
12.23
 %
to
14.38%
 
2013
69,658,343

$1.624298

to
$19.475651
$102,679,347
0.85
%
to
2.75%
1.68
%
to
2.47%
29.39
 %
to
31.88%
American Funds Bond Fund
 
2017
9,499,220

$10.029764

to
$11.935949
$136,569,462
0.50
%
to
2.75%
1.43
%
to
1.87%
0.30
 %
to
0.85%
 
2016
8,048,993

$11.835007

to
$17.669273
$123,541,317
0.85
%
to
2.75%
1.66
%
to
1.69%
0.15
 %
to
2.07%
 
2015
9,383,611

$11.817054

to
$17.310440
$142,174,433
0.85
%
to
2.75%
1.59
%
to
1.88%
(2.45
)%
to
(0.57)%
 
2014
11,634,548

$12.113335

to
$17.410454
$178,617,269
0.85
%
to
2.75%
1.80
%
to
2.03%
2.42
 %
to
4.39%
 
2013
14,571,483

$11.826830

to
$16.678760
$216,722,358
0.85
%
to
2.75%
1.46
%
to
1.94%
(4.81
)%
to
(2.99)%
American Funds Global Growth Fund
 
2017
2,135,003

$10.690165

to
$27.374033
$52,725,970
0.50
%
to
2.80%
0.48
%
to
0.63%
6.90
 %
to
27.84%
 
2016
2,112,043

$21.412322

to
$26.031439
$43,944,517
0.85
%
to
2.80%
0.89
%
to
0.90%
(2.16
)%
to
(0.23)%
 
2015
2,627,979

$21.884394

to
$26.091635
$55,461,338
0.85
%
to
2.80%
0.78
%
to
0.91%
3.98
 %
to
6.03%
 
2014
2,924,223

$21.110174

to
$24.607358
$58,852,611
0.85
%
to
2.75%
1.01
%
to
1.08%
(0.46
)%
to
1.45%
 
2013
3,614,598

$21.208236

to
$24.256306
$72,622,692
0.85
%
to
2.75%
1.21
%
to
1.24%
25.68
 %
to
28.08%
American Funds Growth Fund
 
2017
20,385,830

$10.726522

to
$31.745880
$447,865,308
0.30
%
to
2.80%
0.24
%
to
0.53%
7.27
 %
to
24.75%
 
2016
19,010,681

$25.447295

to
$26.911796
$375,951,324
0.85
%
to
2.80%
0.77
%
to
0.77%
6.47
 %
to
8.56%
 
2015
22,437,783

$23.902017

to
$24.789585
$412,477,546
0.85
%
to
2.80%
0.58
%
to
0.62%
3.91
 %
to
5.95%
 
2014
27,579,415

$23.003194

to
$23.396621
$483,527,481
0.85
%
to
2.80%
0.77
%
to
0.80%
5.51
 %
to
7.59%
 
2013
34,857,073

$21.745969

to
$21.801334
$573,773,764
0.85
%
to
2.80%
0.93
%
to
1.31%
26.51
 %
to
29.00%
American Funds Growth-Income Fund
 
2017
15,778,593

$10.823191

to
$27.525937
$372,003,192
0.50
%
to
2.80%
1.02
%
to
1.40%
8.23
 %
to
19.00%
 
2016
15,641,611

$23.130093

to
$26.765509
$337,129,140
0.85
%
to
2.80%
1.47
%
to
1.47%
8.44
 %
to
10.58%
 
2015
18,478,884

$21.329406

to
$24.205306
$363,762,709
0.85
%
to
2.80%
1.29
%
to
1.34%
(1.35
)%
to
0.60%
 
2014
22,806,694

$21.620632

to
$24.061873
$451,289,950
0.85
%
to
2.80%
1.21
%
to
1.29%
7.58
 %
to
9.70%
 
2013
29,071,667

$20.097293

to
$21.934620
$530,508,380
0.85
%
to
2.80%
1.31
%
to
1.99%
29.82
 %
to
32.37%
American Funds International Fund
 
2017
6,885,084

$10.720462

to
$20.217781
$110,844,370
0.30
%
to
2.75%
0.92
%
to
1.38%
7.20
 %
to
28.56%
 
2016
5,036,124

$15.725893

to
$18.277357
$75,344,612
0.85
%
to
2.75%
1.37
%
to
1.40%
0.72
 %
to
2.66%
 
2015
5,871,064

$15.612853

to
$17.804513
$86,358,475
0.85
%
to
2.75%
1.41
%
to
1.51%
(7.12
)%
to
(5.33)%
 
2014
7,146,466

$16.809166

to
$18.807754
$112,288,213
0.85
%
to
2.75%
0.96
%
to
1.40%
(5.29
)%
to
(3.48)%
 
2013
8,831,097

$17.748858

to
$19.485261
$145,297,514
0.85
%
to
2.75%
1.41
%
to
1.58%
18.34
 %
to
20.61%
American Funds New World Fund
 
2017
1,413,979

$10.879165

to
$19.823120
$36,479,742
0.30
%
to
2.75%
0.61
%
to
0.95%
8.79
 %
to
25.94%
 
2016
1,145,166

$15.740655

to
$30.807302
$28,455,125
0.85
%
to
2.75%
0.75
%
to
0.76%
2.40
 %
to
4.37%
 
2015
1,334,259

$15.371349

to
$29.518402
$32,198,956
0.85
%
to
2.75%
0.54
%
to
0.56%
(5.77
)%
to
(3.96)%
 
2014
1,699,674

$16.313049

to
$30.736786
$43,223,699
0.85
%
to
2.75%
0.88
%
to
0.89%
(10.37
)%
to
(8.65)%
 
2013
2,085,846

$18.200673

to
$33.647551
$58,781,086
0.85
%
to
2.75%
1.22
%
to
1.52%
8.36
 %
to
10.44%
American Funds Global Small Capitalization Fund
 
2017
1,850,115

$10.901655

to
$26.205876
$39,665,965
0.30
%
to
2.80%
0.03
%
to
0.43%
9.02
 %
to
22.42%
 
2016
1,446,887

$21.406541

to
$26.421449
$31,146,908
0.85
%
to
2.80%
0.24
%
to
0.24%
(0.72
)%
to
1.23%
 
2015
1,736,645

$21.561959

to
$26.099351
$37,224,562
0.85
%
to
2.80%
—
%
to
—%
(2.50
)%
to
(0.58)%
 
2014
2,095,226

$22.183189

to
$26.252305
$45,635,913
0.85
%
to
2.75%
0.11
%
to
0.11%
(0.65
)%
to
1.26%
 
2013
2,693,415

$22.327880

to
$25.926040
$58,725,046
0.85
%
to
2.75%
0.83
%
to
0.90%
24.80
 %
to
27.19%
Columbia Variable Portfolio - Small Company Growth Fund
 
2017
1,550,710

$2.339489

to
$28.300855
$4,816,533
1.70
%
to
2.80%
—
%
to
—%
25.68
 %
to
27.07%
 
2016
1,854,763

$1.841082

to
$22.517686
$4,334,457
1.70
%
to
2.80%
—
%
to
—%
9.63
 %
to
10.84%
 
2015
2,111,620

$1.660979

to
$20.539478
$4,404,444
1.70
%
to
2.80%
—
%
to
—%
0.96
 %
to
2.07%
 
2014
2,612,599

$1.627215

to
$20.344567
$5,125,430
1.70
%
to
2.80%
—
%
to
—%
(7.27
)%
to
(6.25)%
 
2013
3,000,847

$1.735616

to
$21.939930
$6,289,041
1.70
%
to
2.80%
0.11
%
to
0.11%
36.60
 %
to
38.11%
Wells Fargo VT Omega Growth Fund
 
2017
280,899

$28.695211

to
$32.997419
$592,593
1.25
%
to
2.75%
0.23
%
to
0.24%
31.29
 %
to
33.28%
 
2016
410,201

$21.530599

to
$25.132315
$658,776
1.25
%
to
2.75%
—
%
to
—%
(1.97
)%
to
(0.49)%
 
2015
535,224

$21.635741

to
$25.636925
$866,603
1.25
%
to
2.75%
—
%
to
—%
(1.14
)%
to
0.36%
 
2014
571,930

$21.558414

to
$25.931447
$933,625
1.25
%
to
2.75%
—
%
to
—%
1.26
 %
to
2.79%
 
2013
774,332

$1.193034

to
$20.972250
$1,224,790
1.25
%
to
2.50%
0.19
%
to
0.40%
36.76
 %
to
38.48%
Fidelity® VIP Growth Portfolio
 
2017
86,555

$20.773564

to
$31.328356
$1,814,724
1.25
%
to
2.70%
—
%
to
0.08%
31.23
 %
to
33.14%
 
2016
110,327

$15.602567

to
$23.873316
$1,750,447
1.25
%
to
2.70%
—
%
to
—%
(2.13
)%
to
(0.70)%
 
2015
112,585

$15.712413

to
$24.392581
$1,819,855
1.25
%
to
2.70%
0.03
%
to
0.03%
4.06
 %
to
5.58%
 
2014
142,057

$14.882518

to
$23.874181
$2,099,970
1.25
%
to
2.40%
—
%
to
—%
8.38
 %
to
9.63%
 
2013
76,817

$13.574728

to
$22.028133
$1,151,416
1.25
%
to
2.40%
0.05
%
to
0.12%
32.78
 %
to
34.31%
Fidelity® VIP Contrafund® Portfolio
 
2017
725,286

$27.420725

to
$30.342536
$14,891,376
0.50
%
to
2.75%
0.76
%
to
0.78%
18.29
 %
to
20.98%
 
2016
900,107

$23.180801

to
$25.080544
$15,545,759
0.50
%
to
2.75%
0.56
%
to
0.63%
4.81
 %
to
7.19%
 
2015
1,148,684

$22.117416

to
$23.397616
$18,538,795
0.50
%
to
2.75%
0.80
%
to
0.82%
(2.31
)%
to
(0.09)%
 
2014
1,393,601

$22.640127

to
$23.417586
$22,723,243
0.50
%
to
2.75%
0.73
%
to
0.84%
8.63
 %
to
11.10%
 
2013
1,636,395

$20.895412

to
$21.078399
$24,630,367
0.50
%
to
2.70%
0.85
%
to
0.86%
27.47
 %
to
30.30%
Fidelity® VIP Mid Cap Portfolio
 
2017
619,332

$28.875414

to
$29.398935
$12,575,578
0.50
%
to
2.70%
0.48
%
to
0.49%
17.33
 %
to
19.94%
 
2016
778,627

$24.512368

to
$24.611032
$13,298,984
0.50
%
to
2.70%
0.32
%
to
0.32%
8.94
 %
to
11.36%
 
2015
938,115

$22.010852

to
$22.591009
$14,496,070
0.50
%
to
2.70%
0.24
%
to
0.26%
(4.25
)%
to
(2.12)%
 
2014
1,096,983

$22.487394

to
$23.593679
$17,404,971
0.50
%
to
2.70%
0.02
%
to
0.02%
3.21
 %
to
5.50%
 
2013
1,201,597

$21.314452

to
$22.860601
$18,323,229
0.50
%
to
2.70%
0.20
%
to
0.32%
32.25
 %
to
35.19%
Fidelity® VIP Value Strategies Portfolio
 
2017
31,607

$19.164009

to
$33.606969
$656,856
1.25
%
to
2.75%
1.24
%
to
1.30%
15.86
 %
to
17.61%
 
2016
32,475

$16.295090

to
$29.007446
$581,883
1.25
%
to
2.75%
0.82
%
to
0.93%
6.31
 %
to
7.91%
 
2015
41,242

$15.099990

to
$27.286308
$657,526
1.25
%
to
2.75%
0.86
%
to
0.88%
(5.82
)%
to
(4.39)%
 
2014
48,293

$15.793821

to
$28.971599
$807,560
1.25
%
to
2.75%
0.70
%
to
0.80%
3.62
 %
to
5.19%
 
2013
94,871

$15.014580

to
$28.029835
$1,454,040
1.25
%
to
2.70%
0.68
%
to
0.70%
26.72
 %
to
28.57%
Fidelity® VIP Dynamic Capital Appreciation Portfolio
 
2017
12,674

$21.356064

to
$31.730615
$274,613
1.25
%
to
2.40%
0.44
%
to
0.47%
20.57
 %
to
21.97%
 
2016
17,768

$17.509591

to
$26.316250
$337,303
1.25
%
to
2.40%
0.81
%
to
1.08%
0.22
 %
to
1.38%
 
2015
21,840

$17.270582

to
$26.257268
$388,822
1.25
%
to
2.40%
0.51
%
to
0.99%
(1.37
)%
to
(0.23)%
 
2014
33,313

$17.310494

to
$26.622433
$560,600
1.25
%
to
2.40%
0.23
%
to
0.24%
8.04
 %
to
9.28%
 
2013
60,536

$15.839793

to
$24.768200
$932,859
1.25
%
to
2.30%
0.12
%
to
0.13%
35.11
 %
to
36.54%
Fidelity® VIP Strategic Income Portfolio
 
2017
7,473

$15.814675

to
$16.017684
$118,687
0.50
%
to
0.65%
2.95
%
to
3.05%
6.85
 %
to
7.01%
 
2016
7,390

$11.555892

to
$14.968580
$109,810
0.50
%
to
1.45%
—
%
to
3.40%
6.46
 %
to
7.48%
 
2015
9,535

$10.854415

to
$13.927036
$126,048
0.50
%
to
1.45%
2.57
%
to
2.61%
(3.35
)%
to
(2.42)%
 
2014
9,676

$11.230376

to
$14.273150
$131,512
0.50
%
to
1.45%
2.85
%
to
2.87%
1.89
 %
to
2.86%
 
2013
7,170

$13.783094

to
$13.876518
$99,079
0.50
%
to
0.65%
3.75
%
to
5.45%
(0.61
)%
to
(0.46)%
Franklin Rising Dividends VIP Fund
 
2017
5,735,871

$25.807302

to
$30.570925
$164,155,125
0.50
%
to
2.80%
1.48
%
to
1.53%
17.23
 %
to
19.80%
 
2016
6,764,063

$22.014024

to
$25.517537
$163,348,929
0.50
%
to
2.80%
1.35
%
to
1.37%
12.84
 %
to
15.36%
 
2015
7,759,455

$19.509293

to
$22.120594
$164,590,602
0.50
%
to
2.80%
1.42
%
to
1.62%
(6.31
)%
to
(4.23)%
 
2014
9,679,042

$20.822970

to
$23.097903
$217,207,566
0.50
%
to
2.80%
1.29
%
to
1.32%
5.72
 %
to
8.08%
 
2013
12,257,980

$19.696171

to
$21.371913
$258,059,095
0.50
%
to
2.80%
1.35
%
to
1.52%
26.11
 %
to
28.93%
Franklin Income VIP Fund
 
2017
15,375,955

$20.285231

to
$20.543598
$333,343,316
0.50
%
to
2.80%
3.86
%
to
4.09%
6.65
 %
to
9.00%
 
2016
18,020,246

$18.846757

to
$19.021188
$362,542,937
0.50
%
to
2.80%
4.81
%
to
4.99%
10.88
 %
to
13.30%
 
2015
21,626,662

$16.634234

to
$17.155407
$388,173,394
0.50
%
to
2.80%
4.52
%
to
4.62%
(9.62
)%
to
(7.61)%
 
2014
26,930,252

$18.004152

to
$18.981745
$531,422,802
0.50
%
to
2.80%
4.69
%
to
4.86%
1.73
 %
to
4.00%
 
2013
33,417,486

$17.311532

to
$18.659483
$645,762,006
0.50
%
to
2.80%
6.12
%
to
6.19%
10.80
 %
to
13.29%
Franklin Large Cap Growth VIP Fund
 
2017
1,145,388

$22.282173

to
$24.293354
$23,627,681
1.35
%
to
2.80%
0.62
%
to
0.62%
24.57
 %
to
26.39%
 
2016
1,308,833

$17.629724

to
$19.501475
$21,434,368
1.35
%
to
2.80%
—
%
to
—%
(4.50
)%
to
(3.11)%
 
2015
1,633,041

$18.195479

to
$20.421344
$27,760,346
1.35
%
to
2.80%
—
%
to
0.27%
2.71
 %
to
4.21%
 
2014
1,930,654

$17.460819

to
$19.943740
$31,676,912
1.35
%
to
2.75%
1.01
%
to
1.09%
9.41
 %
to
10.95%
 
2013
2,354,613

$15.737151

to
$18.228395
$35,049,205
1.35
%
to
2.75%
1.08
%
to
1.09%
25.15
 %
to
26.91%
Franklin Global Real Estate VIP Fund
 
2017
33,022

$19.596544

to
$25.300343
$811,965
1.40
%
to
2.40%
3.02
%
to
3.13%
7.85
 %
to
8.94%
 
2016
37,743

$18.169348

to
$23.224410
$855,299
1.40
%
to
2.40%
1.22
%
to
1.23%
(1.84
)%
to
(0.86)%
 
2015
37,567

$18.510266

to
$23.424914
$857,471
1.40
%
to
2.40%
3.07
%
to
3.24%
(1.81
)%
to
(0.83)%
 
2014
48,438

$18.852137

to
$23.620092
$1,114,608
1.40
%
to
2.40%
0.44
%
to
0.46%
12.28
 %
to
13.41%
 
2013
56,616

$16.789715

to
$20.826823
$1,153,745
1.40
%
to
2.40%
4.38
%
to
4.65%
(0.11
)%
to
0.90%
Franklin Small-Mid Cap Growth VIP Fund
 
2017
2,552,501

$27.599807

to
$29.331498
$47,720,881
0.50
%
to
2.80%
—
%
to
—%
18.05
 %
to
20.70%
 
2016
2,904,627

$23.380067

to
$24.301278
$45,772,218
0.50
%
to
2.80%
—
%
to
—%
1.29
 %
to
3.52%
 
2015
3,367,710

$23.081525

to
$23.475745
$52,059,671
0.50
%
to
2.80%
—
%
to
—%
(5.35
)%
to
(3.25)%
 
2014
4,136,936

$22.406751

to
$24.385128
$67,441,297
0.85
%
to
2.80%
—
%
to
—%
4.50
 %
to
6.56%
 
2013
5,125,090

$21.026849

to
$23.334129
$79,345,282
0.85
%
to
2.80%
—
%
to
—%
34.34
 %
to
36.99%
Franklin Small Cap Value VIP Fund
 
2017
644,831

$28.621801

to
$32.012289
$12,167,564
0.30
%
to
2.75%
—
%
to
0.52%
7.65
 %
to
10.23%
 
2016
853,643

$26.587670

to
$29.040831
$14,743,972
0.30
%
to
2.75%
—
%
to
0.78%
26.66
 %
to
29.73%
 
2015
876,888

$20.991766

to
$22.385491
$11,919,792
0.30
%
to
2.75%
—
%
to
0.69%
(9.90
)%
to
(7.80)%
 
2014
1,107,452

$23.298291

to
$24.012610
$16,455,234
0.50
%
to
2.75%
0.48
%
to
0.66%
(2.16
)%
to
(0.02)%
 
2013
1,390,083

$23.812141

to
$24.018165
$20,748,049
0.50
%
to
2.75%
1.16
%
to
1.32%
32.54
 %
to
35.44%
Franklin Strategic Income VIP Fund
 
2017
5,125,664

$15.357547

to
$15.538835
$100,756,200
0.50
%
to
2.80%
2.70
%
to
3.01%
1.85
 %
to
3.94%
 
2016
5,658,488

$14.949678

to
$15.079310
$108,493,198
0.50
%
to
2.80%
3.24
%
to
3.63%
5.26
 %
to
7.33%
 
2015
6,821,524

$13.929325

to
$14.325250
$122,914,593
0.50
%
to
2.80%
6.30
%
to
6.57%
(6.28
)%
to
(4.45)%
 
2014
8,389,084

$14.578740

to
$15.285334
$161,317,982
0.50
%
to
2.80%
5.79
%
to
5.93%
(0.70
)%
to
1.25%
 
2013
10,225,598

$14.399450

to
$15.392925
$198,652,045
0.50
%
to
2.80%
5.42
%
to
5.80%
0.66
 %
to
2.65%
Franklin Mutual Shares VIP Fund
 
2017
8,326,615

$20.882885

to
$24.016641
$189,034,255
0.30
%
to
2.80%
—
%
to
2.27%
5.36
 %
to
7.93%
 
2016
9,730,034

$19.821188

to
$22.252692
$207,416,296
0.30
%
to
2.80%
—
%
to
1.99%
12.85
 %
to
15.59%
 
2015
11,800,382

$17.563602

to
$19.250716
$219,877,316
0.30
%
to
2.80%
—
%
to
3.08%
(7.56
)%
to
(5.33)%
 
2014
14,365,304

$19.000464

to
$20.112965
$287,959,094
0.50
%
to
2.80%
1.82
%
to
1.99%
4.16
 %
to
6.51%
 
2013
17,906,901

$18.240897

to
$18.883899
$343,836,287
0.50
%
to
2.80%
2.02
%
to
2.07%
24.72
 %
to
27.41%
Templeton Developing Markets VIP Fund
 
2017
819,480

$19.314424

to
$31.742262
$18,327,910
0.85
%
to
2.75%
1.11
%
to
1.22%
36.84
 %
to
39.46%
 
2016
920,120

$14.114481

to
$22.760523
$14,913,656
0.85
%
to
2.75%
1.11
%
to
1.14%
14.60
 %
to
16.80%
 
2015
1,065,421

$12.316326

to
$19.487393
$14,902,292
0.85
%
to
2.75%
1.36
%
to
2.40%
(21.61
)%
to
(20.11)%
 
2014
1,327,897

$15.711905

to
$24.391339
$23,637,941
0.85
%
to
2.75%
1.80
%
to
1.97%
(10.58
)%
to
(8.87)%
 
2013
1,694,600

$17.571473

to
$26.764414
$34,141,312
0.85
%
to
2.75%
1.69
%
to
1.92%
(3.43
)%
to
(1.58)%
Templeton Foreign VIP Fund
 
2017
4,214,224

$16.758176

to
$17.761339
$63,148,606
0.30
%
to
2.75%
—
%
to
2.59%
13.53
 %
to
16.27%
 
2016
4,970,803

$14.761174

to
$15.275854
$64,936,858
0.30
%
to
2.75%
—
%
to
1.91%
4.27
 %
to
6.77%
 
2015
5,725,507

$14.122314

to
$14.156956
$71,098,235
0.50
%
to
2.75%
3.06
%
to
3.35%
(9.03
)%
to
(7.11)%
 
2014
6,427,949

$15.372277

to
$15.562315
$87,143,294
0.30
%
to
2.75%
—
%
to
1.77%
(13.54
)%
to
(11.49)%
 
2013
7,579,644

$17.367091

to
$18.000234
$118,072,167
0.30
%
to
2.75%
—
%
to
2.82%
19.64
 %
to
22.49%
Templeton Growth VIP Fund
 
2017
6,013,942

$20.307880

to
$22.065681
$109,641,328
0.50
%
to
2.75%
1.44
%
to
1.64%
15.29
 %
to
17.79%
 
2016
7,095,202

$17.614976

to
$18.733633
$110,930,197
0.50
%
to
2.75%
1.92
%
to
2.00%
6.65
 %
to
8.92%
 
2015
8,496,186

$16.517233

to
$17.199491
$123,367,075
0.50
%
to
2.75%
2.41
%
to
2.74%
(9.02
)%
to
(7.01)%
 
2014
10,363,841

$18.155747

to
$18.496229
$164,202,557
0.50
%
to
2.75%
1.21
%
to
1.53%
(5.45
)%
to
(3.37)%
 
2013
12,935,884

$19.140368

to
$19.202764
$215,920,588
0.50
%
to
2.75%
1.94
%
to
2.23%
27.27
 %
to
29.99%
Franklin Mutual Global Discovery VIP Fund
 
2017
2,026,252

$18.963990

to
$21.062852
$57,709,185
0.50
%
to
2.80%
1.68
%
to
1.79%
5.60
 %
to
7.96%
 
2016
2,299,590

$17.958351

to
$19.509669
$61,818,346
0.50
%
to
2.80%
1.51
%
to
1.71%
9.08
 %
to
11.46%
 
2015
2,724,775

$16.463719

to
$17.503562
$66,618,842
0.50
%
to
2.80%
2.60
%
to
2.79%
(6.31
)%
to
(4.22)%
 
2014
3,360,539

$17.572790

to
$18.275181
$87,271,968
0.50
%
to
2.80%
2.00
%
to
2.13%
2.79
 %
to
5.07%
 
2013
4,135,635

$17.095911

to
$17.393302
$104,121,213
0.50
%
to
2.80%
2.12
%
to
2.19%
24.09
 %
to
26.89%
Franklin Flex Cap Growth VIP Fund
 
2017
558,501

$23.630633

to
$26.522361
$10,970,274
0.50
%
to
2.75%
—
%
to
—%
23.50
 %
to
26.15%
 
2016
638,501

$19.134239

to
$21.023945
$10,079,964
0.50
%
to
2.75%
—
%
to
—%
(5.52
)%
to
(3.47)%
 
2015
778,813

$20.252735

to
$21.778839
$12,899,308
0.50
%
to
2.75%
—
%
to
—%
1.53
 %
to
3.80%
 
2014
893,234

$17.781146

to
$19.946646
$14,474,320
0.85
%
to
2.75%
—
%
to
—%
3.23
 %
to
5.21%
 
2013
1,109,141

$16.901039

to
$19.323070
$17,183,794
0.85
%
to
2.75%
—
%
to
—%
33.76
 %
to
36.32%
Templeton Global Bond VIP Fund
 
2017
853,837

$13.318597

to
$14.229796
$11,731,550
0.50
%
to
2.70%
—
%
to
—%
(0.95
)%
to
1.25%
 
2016
972,798

$13.446298

to
$14.053626
$13,338,093
0.50
%
to
2.70%
—
%
to
—%
0.13
 %
to
2.36%
 
2015
1,102,227

$13.428944

to
$13.730112
$14,919,710
0.50
%
to
2.70%
6.47
%
to
8.02%
(6.94
)%
to
(4.87)%
 
2014
1,209,784

$14.430215

to
$14.432629
$17,397,591
0.50
%
to
2.70%
4.46
%
to
4.96%
(1.02
)%
to
1.19%
 
2013
1,311,053

$14.263388

to
$14.578287
$18,826,191
0.50
%
to
2.70%
4.45
%
to
4.95%
(1.17
)%
to
1.03%
Hartford Balanced HLS Fund
 
2017
3,851,653

$18.283142

to
$21.526102
$13,086,763
0.85
%
to
2.75%
0.80
%
to
2.05%
12.17
 %
to
14.61%
 
2016
4,387,479

$15.952107

to
$19.190531
$12,814,954
0.85
%
to
2.75%
2.22
%
to
2.53%
2.92
 %
to
5.14%
 
2015
5,237,448

$15.172419

to
$18.645311
$14,355,475
0.85
%
to
2.75%
1.59
%
to
1.59%
(2.78
)%
to
(0.67)%
 
2014
6,301,401

$15.274798

to
$19.177920
$16,694,431
0.85
%
to
2.75%
1.50
%
to
1.60%
6.54
 %
to
8.86%
 
2013
7,677,578

$14.031437

to
$18.001299
$18,155,718
0.85
%
to
2.75%
1.40
%
to
1.58%
17.61
 %
to
20.16%
Hartford Total Return Bond HLS Fund
 
2017
16,817,785

$12.634875

to
$14.533811
$105,310,772
0.50
%
to
2.80%
2.72
%
to
2.84%
1.91
 %
to
4.63%
 
2016
18,329,294

$12.398507

to
$13.890160
$111,466,608
0.50
%
to
2.80%
2.24
%
to
2.59%
1.34
 %
to
3.97%
 
2015
21,485,983

$12.234802

to
$13.359427
$125,304,643
0.50
%
to
2.80%
3.05
%
to
3.08%
(3.55
)%
to
(1.08)%
 
2014
25,293,527

$12.685130

to
$13.505685
$145,425,752
0.50
%
to
2.80%
2.95
%
to
3.26%
2.76
 %
to
5.36%
 
2013
28,918,085

$12.343982

to
$12.818679
$154,892,749
0.50
%
to
2.80%
3.65
%
to
4.09%
(4.37
)%
to
(1.86)%
Hartford Capital Appreciation HLS Fund
 
2017
10,221,718

$27.410023

to
$28.687355
$106,852,678
0.50
%
to
2.80%
0.84
%
to
1.07%
18.45
 %
to
21.53%
 
2016
12,087,633

$23.139746

to
$23.605269
$109,530,012
0.50
%
to
2.80%
0.86
%
to
1.13%
2.34
 %
to
5.00%
 
2015
14,077,134

$22.482246

to
$22.611663
$122,216,277
0.50
%
to
2.80%
0.66
%
to
0.90%
(2.00
)%
to
0.51%
 
2014
17,021,067

$22.367476

to
$23.072403
$145,554,664
0.50
%
to
2.80%
0.62
%
to
0.91%
4.08
 %
to
6.77%
 
2013
20,021,826

$20.948870

to
$22.167748
$156,772,819
0.50
%
to
2.80%
0.66
%
to
0.91%
34.89
 %
to
38.39%
Hartford Dividend and Growth HLS Fund
 
2017
7,208,288

$25.558708

to
$30.360968
$78,574,776
0.50
%
to
2.80%
1.35
%
to
1.61%
14.85
 %
to
17.77%
 
2016
8,617,177

$22.253982

to
$25.780508
$84,569,750
0.50
%
to
2.80%
1.71
%
to
2.06%
11.42
 %
to
14.31%
 
2015
10,083,636

$19.973005

to
$22.552591
$87,476,243
0.50
%
to
2.80%
1.54
%
to
1.84%
(4.13
)%
to
(1.65)%
 
2014
12,201,452

$20.897634

to
$22.930999
$104,686,058
0.50
%
to
2.75%
1.60
%
to
1.89%
9.63
 %
to
12.40%
 
2013
15,217,649

$19.062349

to
$20.401863
$110,603,880
0.50
%
to
2.75%
1.74
%
to
1.99%
28.01
 %
to
31.27%
Hartford Healthcare HLS Fund
 
2017
13,766

$5.500146

to
$5.842235
$80,423
1.40
%
to
1.75%
—
%
to
—%
19.85
 %
to
20.27%
 
2016
20,225

$4.589350

to
$4.857765
$97,536
1.40
%
to
1.75%
3.33
%
to
3.36%
(10.22
)%
to
(9.91)%
 
2015
29,297

$5.111962

to
$5.392026
$157,225
1.40
%
to
1.75%
—
%
to
—%
11.02
 %
to
11.41%
 
2014
29,421

$4.604617

to
$4.839920
$141,771
1.40
%
to
1.75%
0.04
%
to
0.04%
24.80
 %
to
25.23%
 
2013
40,443

$3.689662

to
$3.864674
$155,832
1.40
%
to
1.75%
0.24
%
to
0.30%
48.87
 %
to
49.39%
Hartford Global Growth HLS Fund
 
2017
177,889

$14.299699

to
$30.730518
$998,925
0.50
%
to
2.75%
0.27
%
to
0.51%
28.78
 %
to
32.06%
 
2016
237,517

$11.104106

to
$23.269366
$903,875
0.50
%
to
2.75%
0.13
%
to
0.68%
(1.05
)%
to
1.44%
 
2015
257,455

$11.221450

to
$22.938184
$1,034,183
0.50
%
to
2.75%
0.29
%
to
0.53%
4.84
 %
to
7.50%
 
2014
262,710

$10.703557

to
$11.985136
$880,101
1.25
%
to
2.75%
0.25
%
to
0.46%
5.46
 %
to
7.04%
 
2013
203,091

$11.364381

to
$20.976608
$691,385
1.25
%
to
2.40%
0.60
%
to
0.76%
33.07
 %
to
34.60%
Hartford Disciplined Equity HLS Fund


 
2017
600,755

$30.291087

to
$33.884927
$11,973,068
0.50
%
to
2.70%
0.97
%
to
1.54%
18.67
 %
to
21.31%
 
2016
684,441

$25.525292

to
$27.932790
$11,480,135
0.50
%
to
2.70%
0.17
%
to
0.97%
2.94
 %
to
5.23%
 
2015
780,338

$24.795574

to
$26.543868
$12,535,282
0.50
%
to
2.70%
0.79
%
to
4.27%
3.99
 %
to
6.30%
 
2014
966,060

$17.539302

to
$23.844431
$14,807,260
0.85
%
to
2.70%
0.11
%
to
0.73%
13.09
 %
to
15.20%
 
2013
1,101,018

$15.225344

to
$21.085043
$14,667,571
0.85
%
to
2.70%
0.96
%
to
1.00%
32.20
 %
to
34.67%
Hartford Growth Opportunities HLS Fund
 
2017
1,150,790

$32.576607

to
$36.470168
$23,977,401
0.50
%
to
2.75%
—
%
to
—%
26.91
 %
to
29.80%
 
2016
1,435,786

$25.668615

to
$28.097800
$23,340,974
0.50
%
to
2.75%
0.43
%
to
0.43%
(3.19
)%
to
(0.99)%
 
2015
1,788,705

$26.514567

to
$28.377928
$29,530,340
0.50
%
to
2.75%
0.13
%
to
0.13%
8.71
 %
to
11.18%
 
2014
2,294,100

$24.391204

to
$25.524668
$34,568,919
0.50
%
to
2.75%
0.17
%
to
0.18%
11.05
 %
to
13.57%
 
2013
2,491,105

$22.020532

to
$22.473877
$33,470,814
0.50
%
to
2.70%
0.01
%
to
0.01%
32.13
 %
to
35.07%
Hartford High Yield HLS Fund
 
2017
392,657

$21.162614

to
$21.874855
$6,566,826
0.50
%
to
2.70%
3.56
%
to
6.53%
4.74
 %
to
7.07%
 
2016
455,559

$19.765540

to
$20.885096
$7,253,753
0.50
%
to
2.70%
6.03
%
to
6.05%
11.21
 %
to
13.68%
 
2015
523,035

$17.386940

to
$18.780286
$7,448,045
0.50
%
to
2.70%
5.92
%
to
6.62%
(6.85
)%
to
(4.78)%
 
2014
570,252

$18.260110

to
$20.162328
$8,624,985
0.50
%
to
2.70%
7.29
%
to
7.77%
(0.15
)%
to
2.07%
 
2013
635,510

$17.890402

to
$20.193484
$9,349,739
0.50
%
to
2.70%
8.00
%
to
8.20%
3.60
 %
to
5.90%
Hartford International Opportunities HLS Fund
 
2017
1,099,728

$19.466539

to
$21.188012
$7,377,364
0.50
%
to
2.75%
1.16
%
to
1.49%
21.61
 %
to
24.63%
 
2016
1,204,232

$12.016012

to
$16.007910
$6,723,023
0.30
%
to
2.75%
—
%
to
0.95%
(1.80
)%
to
0.64%
 
2015
1,427,251

$16.300812

to
$16.874218
$7,595,342
0.50
%
to
2.75%
1.16
%
to
1.50%
(1.11
)%
to
1.37%
 
2014
1,596,986

$11.780937

to
$16.483110
$8,200,250
0.30
%
to
2.75%
—
%
to
1.96%
(6.74
)%
to
(4.43)%
 
2013
2,001,900

$12.326828

to
$17.674881
$9,647,494
0.30
%
to
2.75%
1.94
%
to
2.41%
17.99
 %
to
20.91%
Hartford Small/Mid Cap Equity HLS Fund
 
2017
60,900

$20.935673

to
$30.792776
$1,262,811
0.85
%
to
2.75%
0.61
%
to
1.03%
10.85
 %
to
13.46%
 
2016
89,432

$18.452482

to
$27.778644
$1,675,453
0.85
%
to
2.75%
—
%
to
1.43%
13.18
 %
to
15.50%
 
2015
102,012

$15.976238

to
$25.068396
$1,650,963
0.85
%
to
2.70%
0.95
%
to
1.24%
(7.27
)%
to
(5.54)%
 
2014
122,007

$16.913383

to
$27.034635
$2,087,497
0.85
%
to
2.70%
1.58
%
to
1.59%
2.42
 %
to
4.33%
 
2013
154,328

$16.210977

to
$26.395817
$2,486,980
0.85
%
to
2.70%
1.37
%
to
1.56%
33.85
 %
to
36.35%
Hartford MidCap HLS Fund
 
2017
83,625

$9.696947

to
$9.696947
$810,909
1.40
%
to
1.40%
—
%
to
—%
22.44
 %
to
22.44%
 
2016
89,461

$7.919670

to
$7.919670
$708,498
1.40
%
to
1.40%
0.03
%
to
0.03%
10.14
 %
to
10.14%
 
2015
124,922

$7.190783

to
$7.190783
$898,288
1.40
%
to
1.40%
0.08
%
to
0.08%
(0.07
)%
to
(0.07)%
 
2014
157,710

$7.035554

to
$7.195953
$1,131,916
1.40
%
to
1.55%
—
%
to
—%
9.38
 %
to
9.55%
 
2013
172,064

$6.431994

to
$6.568778
$1,127,729
1.40
%
to
1.55%
0.02
%
to
0.02%
37.31
 %
to
37.52%
Hartford MidCap Value HLS Fund
 
2017
26,009

$3.301867

to
$20.813961
$346,887
1.40
%
to
2.75%
0.31
%
to
0.31%
10.11
 %
to
11.61%
 
2016
33,243

$2.958388

to
$18.902209
$416,875
1.40
%
to
2.75%
—
%
to
0.31%
9.50
 %
to
10.99%
 
2015
65,761

$2.665391

to
$17.549879
$471,761
1.40
%
to
2.45%
0.30
%
to
0.33%
(3.83
)%
to
(2.82)%
 
2014
85,552

$2.742662

to
$27.925632
$632,544
1.40
%
to
2.50%
0.42
%
to
0.46%
5.24
 %
to
6.41%
 
2013
125,236

$2.577505

to
$26.534299
$607,498
1.40
%
to
2.50%
0.54
%
to
1.00%
31.05
 %
to
32.50%
Hartford Ultrashort Bond HLS Fund
 
2017
45,072,107

$7.847083

to
$9.907999
$49,071,410
0.30
%
to
2.80%
0.51
%
to
0.55%
(1.98
)%
to
0.50%
 
2016
52,018,282

$8.005703

to
$9.858641
$57,724,555
0.30
%
to
2.80%
0.15
%
to
0.16%
(2.13
)%
to
0.34%
 
2015
59,547,994

$8.180333

to
$9.706359
$66,818,100
0.50
%
to
2.80%
—
%
to
0.32%
(2.85
)%
to
(0.37)%
 
2014
76,823,463

$8.420257

to
$9.742603
$86,508,863
0.50
%
to
2.80%
—
%
to
—%
(2.86
)%
to
(0.40)%


 
2013
106,805,182

$8.668057

to
$9.781671
$121,724,972
0.50
%
to
2.80%
—
%
to
—%
(2.86
)%
to
(0.50)%
Hartford Small Company HLS Fund
 
2017
612,130

$26.067689

to
$29.886392
$2,768,606
0.50
%
to
2.80%
—
%
to
—%
22.57
 %
to
25.73%
 
2016
696,045

$21.267803

to
$23.769976
$2,725,976
0.50
%
to
2.80%
—
%
to
—%
(1.01
)%
to
1.54%
 
2015
766,328

$21.483957

to
$23.410469
$3,177,827
0.50
%
to
2.80%
—
%
to
—%
(10.98
)%
to
(8.67)%
 
2014
896,294

$24.207225

to
$25.632868
$4,037,360
0.50
%
to
2.75%
—
%
to
—%
3.95
 %
to
6.54%
 
2013
1,147,217

$23.286857

to
$24.059989
$4,973,222
0.50
%
to
2.75%
—
%
to
—%
40.07
 %
to
43.66%
Hartford SmallCap Growth HLS Fund
 
2017
75,199

$24.873776

to
$27.990034
$1,537,864
1.25
%
to
2.45%
0.04
%
to
0.04%
17.17
 %
to
18.58%
 
2016
69,179

$21.228904

to
$23.603716
$1,160,861
1.25
%
to
2.45%
0.15
%
to
0.15%
9.65
 %
to
10.98%
 
2015
74,024

$19.359825

to
$21.268837
$914,747
1.25
%
to
2.45%
0.06
%
to
0.07%
(2.95
)%
to
(1.78)%
 
2014
94,084

$19.949186

to
$21.654810
$1,293,400
1.25
%
to
2.45%
0.02
%
to
0.07%
3.27
 %
to
4.52%
 
2013
118,401

$19.316921

to
$21.207706
$1,951,842
0.85
%
to
2.45%
0.39
%
to
0.60%
41.37
 %
to
43.65%
Hartford Stock HLS Fund
 
2017
2,969,751

$20.835266

to
$28.209319
$6,984,049
0.85
%
to
2.75%
1.52
%
to
1.86%
16.30
 %
to
18.83%
 
2016
3,387,031

$17.533233

to
$24.255468
$6,634,445
0.85
%
to
2.75%
1.82
%
to
1.90%
4.23
 %
to
6.51%
 
2015
3,972,069

$16.462260

to
$23.270296
$7,138,262
0.85
%
to
2.75%
1.79
%
to
1.83%
(0.30
)%
to
1.87%
 
2014
4,897,250

$16.159456

to
$23.339295
$8,577,560
0.85
%
to
2.75%
1.71
%
to
1.92%
8.02
 %
to
10.36%
 
2013
5,851,086

$14.641880

to
$21.605585
$9,363,607
0.85
%
to
2.75%
1.74
%
to
2.02%
28.35
 %
to
31.13%
Hartford U.S. Government Securities HLS Fund
 
2017
563,800

$9.688990

to
$11.737333
$4,537,811
0.50
%
to
2.70%
2.16
%
to
2.86%
(1.38
)%
to
0.81%
 
2016
591,593

$9.824638

to
$11.642669
$4,708,241
0.50
%
to
2.70%
1.56
%
to
1.91%
(1.16
)%
to
1.03%
 
2015
630,736

$9.616246

to
$11.523427
$4,931,918
0.50
%
to
2.45%
1.81
%
to
1.82%
(0.90
)%
to
1.06%
 
2014
677,875

$9.703192

to
$11.403055
$5,307,328
0.50
%
to
2.45%
2.27
%
to
2.78%
0.33
 %
to
2.30%
 
2013
754,440

$9.671617

to
$11.146482
$5,890,729
0.50
%
to
2.45%
2.27
%
to
2.28%
(4.06
)%
to
(2.17)%
Hartford Value HLS Fund
 
2017
104,753

$17.234496

to
$28.535135
$1,264,114
0.50
%
to
2.45%
1.75
%
to
1.80%
12.65
 %
to
14.86%
 
2016
122,918

$15.299496

to
$24.842421
$1,382,086
0.50
%
to
2.45%
1.77
%
to
1.81%
10.94
 %
to
13.13%
 
2015
137,005

$13.790522

to
$21.959894
$1,410,659
0.50
%
to
2.45%
1.58
%
to
1.58%
(5.43
)%
to
(3.56)%
 
2014
167,091

$21.064438

to
$22.771698
$1,928,639
0.50
%
to
2.70%
—
%
to
1.48%
8.40
 %
to
10.81%
 
2013
177,746

$13.418558

to
$20.550139
$1,855,273
0.50
%
to
2.45%
1.69
%
to
1.76%
28.75
 %
to
31.28%
Rational Dividend Capture VA Fund +
 
2017
654,916

$20.154101

to
$21.696327
$3,403,369
0.50
%
to
2.75%
3.36
%
to
3.38%
(4.26
)%
to
(2.08)%
 
2016
716,440

$21.050591

to
$22.157222
$3,991,887
0.50
%
to
2.75%
4.42
%
to
4.73%
4.07
 %
to
6.43%
 
2015
919,469

$20.227894

to
$20.817629
$4,608,990
0.50
%
to
2.75%
4.21
%
to
4.30%
(5.69
)%
to
(3.54)%
 
2014
1,488,705

$21.447710

to
$21.581635
$8,928,843
0.50
%
to
2.75%
3.70
%
to
5.21%
7.17
 %
to
9.61%
 
2013
2,068,011

$19.689337

to
$20.012231
$9,743,486
0.50
%
to
2.75%
3.00
%
to
3.60%
16.71
 %
to
19.36%
Rational Insider Buying VA Fund+
 
2017
1,186,020

$2.134848

to
$28.763884
$3,494,538
0.50
%
to
2.50%
0.54
%
to
0.56%
14.62
 %
to
16.93%
 
2016
1,453,799

$1.862571

to
$24.598765
$3,742,389
0.50
%
to
2.50%
0.61
%
to
0.64%
8.26
 %
to
10.45%
 
2015
1,842,192

$1.720408

to
$22.271358
$4,353,545
0.50
%
to
2.50%
0.56
%
to
0.57%
(9.46
)%
to
(7.63)%
 
2014
2,898,810

$1.900179

to
$24.110995
$7,599,317
0.50
%
to
2.50%
0.30
%
to
0.35%
(4.48
)%
to
(2.55)%
 
2013
2,405,150

$1.989341

to
$24.742397
$6,269,556
0.50
%
to
2.50%
0.21
%
to
0.33%
28.67
 %
to
31.26%
Lord Abbett Fundamental Equity Fund
 
2017
60,492

$19.639304

to
$24.038372
$1,385,575
0.50
%
to
1.50%
—
%
to
1.04%
10.90
 %
to
12.01%
 
2016
69,743

$17.709076

to
$21.460226
$1,432,057
0.50
%
to
1.50%
1.14
%
to
1.20%
14.02
 %
to
15.17%


 
2015
87,998

$15.531399

to
$18.634025
$1,564,491
0.50
%
to
1.50%
1.08
%
to
1.19%
(4.88
)%
to
(3.93)%
 
2014
93,914

$16.328531

to
$19.395320
$1,740,888
0.50
%
to
1.50%
0.46
%
to
0.46%
5.55
 %
to
6.61%
 
2013
102,882

$15.470435

to
$18.193259
$1,788,586
0.50
%
to
1.50%
0.03
%
to
0.23%
33.74
 %
to
35.08%
Lord Abbett Calibrated Dividend Growth Fund
 
2017
145,762

$22.380222

to
$24.950037
$3,061,894
0.85
%
to
2.70%
0.39
%
to
0.43%
15.95
 %
to
18.12%
 
2016
183,230

$18.947640

to
$21.517417
$3,283,453
0.85
%
to
2.70%
1.15
%
to
2.46%
12.04
 %
to
14.13%
 
2015
223,166

$16.602197

to
$19.205816
$3,520,410
0.85
%
to
2.70%
1.48
%
to
1.69%
(4.74
)%
to
(2.96)%
 
2014
305,569

$17.108718

to
$20.161583
$5,109,504
0.85
%
to
2.70%
1.52
%
to
1.57%
8.57
 %
to
10.60%
 
2013
361,384

$15.469389

to
$18.569944
$5,644,241
0.85
%
to
2.70%
1.38
%
to
1.52%
24.52
 %
to
26.84%
Lord Abbett Bond Debenture Fund
 
2017
549,121

$18.759450

to
$19.864893
$9,682,291
0.50
%
to
2.70%
3.04
%
to
4.10%
6.30
 %
to
8.67%
 
2016
567,672

$17.263252

to
$18.687005
$9,315,754
0.50
%
to
2.70%
4.46
%
to
6.07%
9.15
 %
to
11.57%
 
2015
686,625

$15.472419

to
$17.120902
$10,198,325
0.50
%
to
2.70%
1.87
%
to
4.61%
(4.15
)%
to
(2.02)%
 
2014
805,425

$15.791694

to
$17.862911
$12,336,779
0.50
%
to
2.70%
4.38
%
to
4.78%
1.57
 %
to
3.83%
 
2013
908,072

$15.209739

to
$17.587280
$13,507,408
0.50
%
to
2.70%
3.67
%
to
5.13%
5.29
 %
to
7.63%
Lord Abbett Growth and Income Fund
 
2017
93,217

$23.110049

to
$23.485274
$1,576,087
0.50
%
to
2.40%
1.37
%
to
1.38%
10.69
 %
to
12.82%
 
2016
116,670

$20.817381

to
$20.877488
$1,754,696
0.50
%
to
2.40%
1.41
%
to
1.47%
14.34
 %
to
16.53%
 
2015
141,073

$13.235429

to
$18.259686
$1,843,008
1.25
%
to
2.40%
0.37
%
to
1.04%
(5.17
)%
to
(4.07)%
 
2014
215,371

$12.711398

to
$13.796996
$3,120,851
1.25
%
to
2.45%
0.15
%
to
0.66%
5.05
 %
to
6.32%
 
2013
322,481

$12.100599

to
$12.977394
$4,816,754
1.25
%
to
2.45%
0.57
%
to
1.56%
32.61
 %
to
34.21%
MFS® Growth Fund
 
2017
1,533,512

$31.474515

to
$34.422833
$28,375,046
0.30
%
to
2.80%
—
%
to
0.10%
27.78
 %
to
30.69%
 
2016
1,900,666

$24.631996

to
$26.339016
$26,796,913
0.30
%
to
2.80%
—
%
to
0.04%
(0.39
)%
to
1.87%
 
2015
2,204,305

$24.727335

to
$25.520887
$30,701,151
0.50
%
to
2.80%
—
%
to
0.21%
4.59
 %
to
6.77%
 
2014
2,279,203

$23.642338

to
$23.903523
$30,022,513
0.50
%
to
2.80%
—
%
to
0.11%
5.94
 %
to
8.14%
 
2013
2,873,997

$22.103748

to
$22.317418
$35,800,328
0.50
%
to
2.80%
0.13
%
to
0.23%
33.08
 %
to
35.81%
MFS® Global Equity Fund
 
2017
199,279

$25.325223

to
$33.295481
$5,247,444
0.85
%
to
2.70%
0.81
%
to
0.82%
20.77
 %
to
23.02%
 
2016
218,763

$20.970437

to
$27.065192
$4,771,582
0.85
%
to
2.70%
0.94
%
to
0.96%
4.49
 %
to
6.44%
 
2015
246,746

$20.069905

to
$25.428183
$5,128,324
0.85
%
to
2.70%
1.01
%
to
1.15%
(4.04
)%
to
(2.25)%
 
2014
294,014

$20.914881

to
$26.012901
$6,312,544
0.85
%
to
2.70%
0.69
%
to
0.84%
1.11
 %
to
2.99%
 
2013
384,428

$18.124901

to
$25.256535
$8,069,294
0.85
%
to
2.55%
—
%
to
0.79%
24.60
 %
to
26.73%
MFS® Investors Trust Fund
 
2017
2,583,712

$20.349036

to
$25.683454
$49,741,630
1.15
%
to
2.80%
0.54
%
to
0.72%
19.94
 %
to
21.62%
 
2016
3,098,037

$16.584360

to
$21.413220
$49,243,607
1.25
%
to
2.80%
0.53
%
to
0.86%
5.59
 %
to
6.97%
 
2015
3,654,707

$15.503770

to
$20.279694
$54,485,307
1.25
%
to
2.80%
0.69
%
to
0.92%
(2.55
)%
to
(1.29)%
 
2014
4,597,367

$15.706113

to
$20.810395
$69,771,301
1.25
%
to
2.80%
0.76
%
to
0.95%
7.94
 %
to
9.34%
 
2013
6,054,205

$14.365075

to
$19.279366
$84,388,804
1.25
%
to
2.80%
0.96
%
to
1.05%
28.41
 %
to
30.10%
MFS® Mid Cap Growth Fund
 
2017
1,343,451

$12.601001

to
$33.475229
$15,121,769
0.85
%
to
2.75%
0.12
%
to
0.12%
23.55
 %
to
25.92%
 
2016
1,572,628

$10.007009

to
$27.093650
$14,169,737
0.85
%
to
2.75%
—
%
to
—%
2.06
 %
to
4.02%
 
2015
2,271,225

$9.620047

to
$26.545633
$19,659,627
0.85
%
to
2.75%
—
%
to
—%
1.77
 %
to
3.73%
 
2014
2,268,798

$9.274418

to
$26.082856
$19,245,205
0.85
%
to
2.75%
—
%
to
—%
5.91
 %
to
7.94%
 
2013
2,697,012

$8.592141

to
$24.627585
$21,488,201
0.85
%
to
2.75%
—
%
to
—%
33.99
 %
to
36.56%
MFS® New Discovery Fund


 
2017
1,236,454

$17.934518

to
$36.811059
$31,095,608
0.65
%
to
2.80%
—
%
to
—%
23.16
 %
to
25.51%
 
2016
1,483,583

$14.288949

to
$29.888778
$30,037,343
0.65
%
to
2.80%
—
%
to
—%
6.04
 %
to
8.09%
 
2015
1,738,459

$13.219046

to
$28.186188
$32,932,634
0.65
%
to
2.80%
—
%
to
—%
(4.60
)%
to
(2.78)%
 
2014
2,233,899

$13.596976

to
$29.543884
$44,234,490
0.65
%
to
2.80%
—
%
to
—%
(9.82
)%
to
(8.09)%
 
2013
2,871,838

$14.794347

to
$32.844644
$61,957,861
0.65
%
to
2.75%
—
%
to
—%
37.68
 %
to
40.30%
MFS® Total Return Fund
 
2017
6,864,595

$18.615767

to
$20.856045
$146,002,086
0.50
%
to
2.75%
2.18
%
to
2.38%
9.25
 %
to
11.47%
 
2016
8,086,822

$17.039000

to
$18.710636
$155,634,755
0.50
%
to
2.75%
2.68
%
to
2.79%
6.14
 %
to
8.27%
 
2015
9,407,888

$16.053954

to
$17.281075
$168,891,338
0.50
%
to
2.75%
2.39
%
to
2.71%
(3.07
)%
to
(1.08)%
 
2014
12,236,910

$16.563028

to
$17.468930
$223,847,629
0.50
%
to
2.75%
1.72
%
to
1.91%
5.56
 %
to
7.70%
 
2013
15,615,193

$15.691254

to
$16.220544
$268,989,737
0.50
%
to
2.75%
1.64
%
to
2.00%
15.82
 %
to
18.15%
MFS® Value Fund
 
2017
2,233,173

$25.602921

to
$29.158588
$61,806,760
0.30
%
to
2.80%
—
%
to
1.92%
14.40
 %
to
17.00%
 
2016
2,651,324

$22.379369

to
$24.922682
$63,152,998
0.30
%
to
2.80%
—
%
to
2.08%
10.94
 %
to
13.43%
 
2015
3,165,663

$20.172589

to
$21.687103
$66,887,253
0.50
%
to
2.80%
2.11
%
to
2.31%
(3.48
)%
to
(1.43)%
 
2014
3,800,607

$20.899410

to
$22.001303
$82,955,423
0.50
%
to
2.80%
1.30
%
to
1.52%
7.46
 %
to
9.65%
 
2013
4,737,281

$19.448755

to
$20.064557
$96,244,644
0.50
%
to
2.80%
0.98
%
to
1.69%
32.14
 %
to
34.92%
MFS® Total Return Bond Series
 
2017
5,299,312

$12.998837

to
$14.211206
$74,483,025
0.50
%
to
2.80%
2.95
%
to
3.37%
1.57
 %
to
3.66%
 
2016
5,749,097

$12.797583

to
$13.708924
$78,599,528
0.50
%
to
2.80%
3.22
%
to
3.40%
1.36
 %
to
3.49%
 
2015
6,505,496

$12.626347

to
$13.246484
$86,674,926
0.50
%
to
2.80%
3.22
%
to
3.45%
(3.06
)%
to
(1.08)%
 
2014
7,654,111

$13.024355

to
$13.390681
$104,151,511
0.50
%
to
2.80%
2.61
%
to
2.94%
2.92
 %
to
5.09%
 
2013
9,445,216

$12.654375

to
$12.741841
$123,654,533
0.50
%
to
2.80%
1.11
%
to
1.68%
(3.77
)%
to
(1.78)%
MFS® Research Fund
 
2017
173,623

$26.796181

to
$27.804362
$4,116,069
0.85
%
to
2.75%
1.35
%
to
1.36%
20.02
 %
to
22.32%
 
2016
185,876

$21.905803

to
$23.165645
$3,649,101
0.85
%
to
2.75%
0.76
%
to
0.79%
5.79
 %
to
7.82%
 
2015
216,688

$20.317840

to
$21.898439
$3,977,640
0.85
%
to
2.75%
0.52
%
to
0.73%
(1.93
)%
to
(0.05)%
 
2014
301,257

$20.327821

to
$22.329543
$5,573,469
0.85
%
to
2.75%
—
%
to
0.82%
7.21
 %
to
9.27%
 
2013
324,638

$16.078705

to
$18.603416
$5,542,668
0.85
%
to
2.50%
0.32
%
to
0.33%
29.02
 %
to
31.17%
MFS® High Yield Portfolio
 
2017
2,511,844

$11.142162

to
$12.166841
$29,269,488
0.85
%
to
2.80%
6.10
%
to
6.46%
3.74
 %
to
5.78%
 
2016
2,755,806

$10.740269

to
$11.501580
$30,652,921
0.85
%
to
2.80%
6.73
%
to
6.75%
10.68
 %
to
12.86%
 
2015
3,201,384

$9.703703

to
$10.190929
$31,860,609
0.85
%
to
2.80%
7.11
%
to
7.11%
(6.86
)%
to
(5.03)%
 
2014
4,054,245

$10.418731

to
$10.730506
$42,882,934
0.85
%
to
2.80%
4.75
%
to
5.44%
(0.03
)%
to
1.94%
 
2013
5,186,327

$10.422041

to
$10.526650
$54,331,348
0.85
%
to
2.80%
2.42
%
to
2.42%
4.22
 %
to
5.27%
BlackRock Global Allocation V.I. Fund
 
2017
17,028

$13.767961

to
$13.826114
$233,834
0.50
%
to
0.75%
1.27
%
to
1.29%
12.86
 %
to
13.14%
 
2016
16,468

$11.552461

to
$12.220278
$200,285
0.50
%
to
1.45%
—
%
to
1.27%
2.31
 %
to
3.29%
 
2015
23,105

$11.291541

to
$11.831361
$270,210
0.50
%
to
1.45%
0.92
%
to
1.05%
(2.43
)%
to
(1.49)%
 
2014
24,332

$11.572322

to
$12.010881
$289,987
0.50
%
to
1.45%
1.89
%
to
2.25%
0.46
 %
to
1.42%
 
2013
19,169

$11.842252

to
$11.910946
$227,327
0.50
%
to
0.75%
1.07
%
to
1.86%
13.56
 %
to
13.85%
BlackRock Global Opportunities V.I. Fund
 
2017
1,462

$20.726269

to
$21.011728
$30,306
2.00
%
to
2.45%
—
%
to
1.65%
22.17
 %
to
22.72%
 
2016
2,138

$16.965646

to
$17.122152
$36,378
2.00
%
to
2.45%
1.89
%
to
2.05%
1.08
 %
to
1.54%
 
2015
2,286

$16.784034

to
$16.862821
$38,427
2.00
%
to
2.45%
0.98
%
to
1.11%
(1.72
)%
to
(1.28)%
 
2014
2,089

$17.078460

to
$17.081562
$35,672
2.00
%
to
2.45%
1.16
%
to
1.27%
(6.47
)%
to
(6.05)%


 
2013
1,865

$18.181762

to
$18.260509
$34,025
2.00
%
to
2.45%
0.34
%
to
0.36%
26.64
 %
to
27.21%
BlackRock Large Cap Focus Growth V.I. Fund+
 
2017
15,345

$19.721825

to
$31.796548
$363,831
1.75
%
to
2.45%
0.02
%
to
0.04%
26.42
 %
to
27.31%
 
2016
23,745

$15.491046

to
$25.150778
$443,860
1.75
%
to
2.45%
0.76
%
to
1.07%
5.27
 %
to
6.01%
 
2015
25,661

$14.612422

to
$23.890870
$445,990
1.75
%
to
2.45%
0.45
%
to
0.57%
0.24
 %
to
0.95%
 
2014
26,734

$14.475438

to
$23.833152
$461,428
1.75
%
to
2.45%
0.54
%
to
0.56%
11.40
 %
to
12.18%
 
2013
28,927

$12.903287

to
$15.196385
$439,153
1.75
%
to
2.15%
0.49
%
to
0.70%
31.07
 %
to
31.60%
BlackRock Equity Dividend V.I. Fund
 
2017
34,579

$19.029838

to
$20.321731
$695,324
0.50
%
to
1.45%
1.45
%
to
1.55%
14.81
 %
to
15.91%
 
2016
40,661

$16.574538

to
$17.532485
$705,620
0.50
%
to
1.45%
1.46
%
to
1.54%
14.39
 %
to
15.48%
 
2015
50,589

$14.489678

to
$15.182254
$760,676
0.50
%
to
1.45%
1.45
%
to
1.45%
(2.25
)%
to
(1.31)%
 
2014
48,032

$14.822529

to
$15.384149
$732,802
0.50
%
to
1.45%
1.45
%
to
1.49%
7.50
 %
to
8.52%
 
2013
71,399

$13.788918

to
$14.176061
$1,005,774
0.50
%
to
1.45%
1.69
%
to
1.71%
22.33
 %
to
23.50%
Morgan Stanley VIF Core Plus Fixed Income Portfolio+
 
2017
3,989

$11.254344

to
$11.254344
$44,894
1.70
%
to
1.70%
2.91
%
to
2.91%
4.11
 %
to
4.11%
 
2016
4,051

$10.810072

to
$10.810072
$43,794
1.70
%
to
1.70%
1.67
%
to
1.67%
4.08
 %
to
4.08%
 
2015
4,119

$10.386757

to
$10.386757
$42,783
1.70
%
to
1.70%
3.22
%
to
3.22%
(2.50
)%
to
(2.50)%
 
2014
4,187

$10.653472

to
$10.653472
$44,603
1.70
%
to
1.70%
2.57
%
to
2.57%
5.75
 %
to
5.75%
 
2013
3,079

$10.073973

to
$10.073973
$31,013
1.70
%
to
1.70%
—
%
to
—%
0.74
 %
to
0.74%
Morgan Stanley VIF Growth Portfolio+
 
2017
13,935

$19.401823

to
$20.666424
$280,826
1.35
%
to
2.75%
—
%
to
—%
38.95
 %
to
40.91%
 
2016
17,208

$13.963132

to
$14.666750
$247,562
1.35
%
to
2.75%
—
%
to
—%
(4.58
)%
to
(3.24)%
 
2015
17,531

$14.633999

to
$15.157585
$262,035
1.35
%
to
2.75%
—
%
to
—%
8.93
 %
to
10.47%
 
2014
18,621

$13.434144

to
$13.721383
$253,346
1.35
%
to
2.75%
—
%
to
—%
3.21
 %
to
4.67%
 
2013
21,059

$13.016247

to
$13.109696
$275,252
1.35
%
to
2.75%
—
%
to
—%
30.16
 %
to
31.10%
Morgan Stanley VIF Mid Cap Growth Portfolio+
 
2017
83,954

$18.949179

to
$28.102860
$1,503,552
0.85
%
to
2.70%
—
%
to
—%
34.91
 %
to
37.43%
 
2016
99,265

$13.788729

to
$20.830859
$1,299,458
0.85
%
to
2.70%
—
%
to
—%
(11.27
)%
to
(9.61)%
 
2015
114,453

$15.255417

to
$23.477293
$1,673,534
0.85
%
to
2.70%
—
%
to
—%
(8.49
)%
to
(6.79)%
 
2014
127,397

$16.365859

to
$25.656623
$2,008,157
0.85
%
to
2.70%
—
%
to
—%
(0.87
)%
to
0.98%
 
2013
148,044

$16.207149

to
$25.882254
$2,321,328
0.85
%
to
2.70%
0.22
%
to
0.25%
33.83
 %
to
36.32%
Invesco V.I. American Value Fund
 
2017
57,869

$16.916529

to
$19.797010
$1,098,112
0.85
%
to
2.45%
0.55
%
to
0.60%
7.03
 %
to
8.75%
 
2016
53,924

$15.805692

to
$18.203574
$950,108
0.85
%
to
2.45%
0.12
%
to
0.12%
12.43
 %
to
14.24%
 
2015
46,583

$14.058086

to
$15.933971
$721,691
0.85
%
to
2.45%
0.01
%
to
0.01%
(11.55
)%
to
(10.13)%
 
2014
51,282

$15.894550

to
$17.729300
$888,880
0.85
%
to
2.45%
0.19
%
to
0.27%
6.83
 %
to
8.55%
 
2013
66,877

$14.878459

to
$16.332597
$1,067,146
0.85
%
to
2.45%
0.53
%
to
0.55%
30.69
 %
to
32.80%
Morgan Stanley Mid Cap Growth Portfolio+
 
2017
—

$14.541387

to
$16.469337
$—
1.35
%
to
2.20%
—
%
to
—%
25.01
 %
to
25.85%
 
2016
9,787

$11.631839

to
$13.086696
$126,671
1.35
%
to
2.20%
—
%
to
—%
(11.40
)%
to
(10.64)%
 
2015
8,862

$13.128552

to
$14.645554
$128,306
1.35
%
to
2.20%
—
%
to
—%
(8.84
)%
to
(8.06)%
 
2014
9,586

$14.401329

to
$15.929315
$151,149
1.35
%
to
2.20%
—
%
to
—%
(1.41
)%
to
(0.57)%
 
2013
18,343

$14.607207

to
$16.020231
$283,325
1.35
%
to
2.20%
0.06
%
to
0.06%
34.37
 %
to
35.52%
BlackRock Capital Appreciation V.I. Fund
 
2017
26,551

$18.925560

to
$20.210434
$539,619
0.50
%
to
1.45%
—
%
to
—%
31.03
 %
to
32.28%
 
2016
36,553

$14.443338

to
$15.278228
$559,679
0.50
%
to
1.45%
—
%
to
—%
(1.57
)%
to
(0.63)%


 
2015
40,469

$14.673899

to
$15.375355
$624,328
0.50
%
to
1.45%
—
%
to
—%
5.08
 %
to
6.08%
 
2014
41,319

$13.965119

to
$14.494328
$597,189
0.50
%
to
1.45%
—
%
to
—%
6.99
 %
to
8.01%
 
2013
68,704

$13.052518

to
$13.419051
$919,749
0.50
%
to
1.45%
—
%
to
—%
31.48
 %
to
32.73%
Columbia Variable Portfolio - Asset Allocation Fund
 
2017
896,939

$1.801739

to
$20.236855
$1,931,134
1.70
%
to
2.80%
1.59
%
to
1.64%
12.43
 %
to
13.67%
 
2016
1,027,526

$1.585011

to
$17.999392
$1,929,599
1.70
%
to
2.80%
2.22
%
to
2.23%
2.45
 %
to
3.58%
 
2015
1,615,330

$1.530186

to
$17.569038
$2,685,616
1.70
%
to
2.80%
2.01
%
to
2.07%
(1.72
)%
to
(0.64)%
 
2014
1,975,569

$1.390229

to
$1.539994
$3,266,714
1.70
%
to
2.50%
2.27
%
to
2.50%
7.33
 %
to
8.19%
 
2013
2,523,886

$1.295289

to
$1.423392
$3,713,728
1.70
%
to
2.50%
2.39
%
to
2.43%
15.25
 %
to
16.18%
Columbia Variable Portfolio - Dividend Opportunity Fund
 
2017
474,696

$14.587562

to
$15.697718
$7,236,021
1.70
%
to
2.80%
—
%
to
—%
11.22
 %
to
12.45%
 
2016
552,896

$13.115961

to
$13.959804
$7,528,292
1.70
%
to
2.80%
—
%
to
—%
10.53
 %
to
11.75%
 
2015
638,628

$11.866359

to
$12.491639
$7,817,514
1.70
%
to
2.80%
—
%
to
—%
(5.34
)%
to
(4.29)%
 
2014
729,017

$12.535952

to
$13.052025
$9,365,686
1.70
%
to
2.80%
—
%
to
—%
7.04
 %
to
8.22%
 
2013
844,488

$11.711566

to
$12.060362
$10,069,242
1.70
%
to
2.80%
—
%
to
—%
23.32
 %
to
24.68%
Columbia Variable Portfolio - Income Opportunities Fund
 
2017
486,473

$10.981367

to
$11.574276
$5,519,773
1.70
%
to
2.80%
6.23
%
to
6.27%
3.62
 %
to
4.76%
 
2016
551,922

$10.598072

to
$11.048118
$6,004,460
1.70
%
to
2.80%
10.70
%
to
10.87%
7.87
 %
to
9.06%
 
2015
613,284

$9.825034

to
$10.130224
$6,144,082
1.70
%
to
2.80%
9.20
%
to
9.34%
(3.73
)%
to
(2.67)%
 
2014
741,140

$10.214820

to
$10.407596
$7,660,597
1.70
%
to
2.75%
—
%
to
—%
1.20
 %
to
2.27%
 
2013
895,545

$10.093976

to
$10.177068
$9,087,876
1.70
%
to
2.75%
5.48
%
to
6.18%
0.94
 %
to
1.77%
Columbia Variable Portfolio - Mid Cap Growth Fund
 
2017
456,179

$15.299871

to
$16.087414
$7,176,535
1.70
%
to
2.75%
—
%
to
—%
19.65
 %
to
20.91%
 
2016
519,137

$12.787005

to
$13.304866
$6,786,779
1.70
%
to
2.75%
—
%
to
—%
(0.48
)%
to
0.57%
 
2015
600,424

$12.848975

to
$13.229680
$7,843,268
1.70
%
to
2.75%
—
%
to
—%
2.75
 %
to
3.84%
 
2014
708,214

$12.505029

to
$12.741041
$8,951,793
1.70
%
to
2.75%
—
%
to
—%
4.50
 %
to
5.60%
 
2013
828,931

$11.966406

to
$12.064865
$9,966,805
1.70
%
to
2.75%
—
%
to
—%
19.66
 %
to
20.65%
Oppenheimer Capital Appreciation Fund/VA
 
2017
27,283

$16.105084

to
$18.121213
$478,267
1.25
%
to
2.45%
0.01
%
to
0.01%
23.44
 %
to
24.93%
 
2016
38,555

$13.046402

to
$14.504715
$543,614
1.25
%
to
2.45%
0.11
%
to
0.12%
(4.79
)%
to
(3.64)%
 
2015
62,594

$13.703122

to
$15.052983
$925,014
1.25
%
to
2.45%
—
%
to
—%
0.77
 %
to
1.98%
 
2014
72,050

$14.760057

to
$22.965685
$1,049,576
1.25
%
to
2.70%
—
%
to
0.18%
12.06
 %
to
13.70%
 
2013
54,304

$12.104780

to
$12.981843
$697,834
1.25
%
to
2.45%
0.74
%
to
0.75%
26.30
 %
to
27.82%
Oppenheimer Global Fund/VA
 
2017
285,296

$19.848103

to
$27.236947
$5,392,022
0.85
%
to
2.70%
0.65
%
to
0.76%
32.69
 %
to
35.17%
 
2016
317,145

$14.684228

to
$20.526498
$4,470,280
0.85
%
to
2.70%
0.77
%
to
0.77%
(2.82
)%
to
(1.00)%
 
2015
400,978

$14.832940

to
$21.121837
$5,721,917
0.85
%
to
2.70%
0.94
%
to
1.06%
0.91
 %
to
2.79%
 
2014
480,986

$14.429674

to
$20.931410
$6,711,569
0.85
%
to
2.70%
0.83
%
to
0.86%
(0.66
)%
to
1.19%
 
2013
530,619

$14.259651

to
$21.071035
$7,345,651
0.85
%
to
2.70%
1.15
%
to
1.17%
23.61
 %
to
25.92%
Oppenheimer Main Street Fund®/VA+
 
2017
44,637

$17.957499

to
$21.015465
$884,787
0.85
%
to
2.45%
—
%
to
1.01%
13.81
 %
to
15.65%
 
2016
63,862

$17.541290

to
$24.640162
$1,126,233
1.25
%
to
2.40%
0.75
%
to
0.92%
8.66
 %
to
9.92%
 
2015
33,266

$15.958911

to
$22.676715
$544,744
1.25
%
to
2.40%
0.65
%
to
0.71%
0.66
 %
to
1.83%
 
2014
48,941

$15.672806

to
$22.120031
$771,616
1.25
%
to
2.70%
—
%
to
0.65%
7.46
 %
to
9.03%
 
2013
89,501

$14.374844

to
$20.901096
$1,276,256
1.25
%
to
2.40%
0.85
%
to
0.87%
28.32
 %
to
29.81%
Oppenheimer Main Street Small Cap Fund/VA


 
2017
178,400

$24.047995

to
$32.376125
$4,081,297
0.85
%
to
2.70%
0.62
%
to
0.65%
10.88
 %
to
12.95%
 
2016
222,152

$21.291496

to
$29.199890
$4,535,693
0.85
%
to
2.70%
0.25
%
to
0.25%
14.54
 %
to
16.68%
 
2015
266,731

$18.248414

to
$25.493533
$4,687,398
0.85
%
to
2.70%
0.61
%
to
0.63%
(8.60
)%
to
(6.89)%
 
2014
323,355

$19.598483

to
$27.891160
$6,129,610
0.85
%
to
2.70%
0.62
%
to
0.66%
8.68
 %
to
10.71%
 
2013
380,278

$17.702586

to
$25.663354
$6,526,667
0.85
%
to
2.70%
0.64
%
to
0.71%
36.88
 %
to
39.43%
Oppenheimer Equity Income Fund/VA+
 
2017
—

$13.154706

to
$14.697871
$—
1.25
%
to
2.45%
2.13
%
to
2.19%
3.64
 %
to
4.16%
 
2016
20,584

$12.692256

to
$14.110975
$284,264
1.25
%
to
2.45%
5.25
%
to
5.26%
12.34
 %
to
13.70%
 
2015
22,574

$11.297861

to
$12.410922
$274,799
1.25
%
to
2.45%
2.71
%
to
2.91%
(12.00
)%
to
(10.94)%
 
2014
24,066

$13.935715

to
$20.291605
$335,468
1.25
%
to
2.70%
—
%
to
1.46%
7.78
 %
to
9.35%
 
2013
19,970

$11.882762

to
$12.743814
$251,413
1.25
%
to
2.45%
1.15
%
to
1.17%
25.59
 %
to
27.11%
Putnam VT Diversified Income Fund
 
2017
820,853

$14.918344

to
$18.456355
$11,591,824
0.85
%
to
2.70%
5.34
%
to
5.53%
4.27
 %
to
6.22%
 
2016
929,770

$14.045264

to
$17.700565
$12,444,852
0.85
%
to
2.70%
7.02
%
to
7.16%
2.61
 %
to
4.53%
 
2015
1,120,054

$13.436838

to
$17.249985
$14,450,912
0.85
%
to
2.70%
9.15
%
to
9.19%
(4.94
)%
to
(3.17)%
 
2014
1,264,497

$13.876408

to
$18.147034
$16,981,470
0.85
%
to
2.70%
7.86
%
to
8.24%
(2.33
)%
to
(0.50)%
 
2013
1,465,125

$13.946422

to
$18.579157
$20,076,797
0.85
%
to
2.70%
3.08
%
to
3.24%
4.94
 %
to
6.90%
Putnam VT Global Asset Allocation Fund
 
2017
35,413

$17.603743

to
$23.929053
$611,647
1.25
%
to
2.40%
1.45
%
to
1.45%
12.60
 %
to
13.90%
 
2016
45,602

$15.454823

to
$21.250834
$694,957
1.25
%
to
2.40%
1.74
%
to
2.21%
4.18
 %
to
5.39%
 
2015
43,479

$14.664852

to
$20.397890
$631,283
1.25
%
to
2.40%
1.06
%
to
3.48%
(2.20
)%
to
(1.07)%
 
2014
32,187

$14.823677

to
$20.857346
$474,935
1.25
%
to
2.40%
2.56
%
to
5.34%
6.83
 %
to
8.06%
 
2013
62,065

$13.717537

to
$19.524199
$996,265
1.25
%
to
2.40%
2.21
%
to
2.49%
16.66
 %
to
18.01%
Putnam VT Growth Opportunities Fund
 
2017
141,273

$13.528598

to
$13.733316
$1,934,211
0.50
%
to
1.45%
0.10
%
to
0.11%
29.02
 %
to
30.25%
 
2016
184,130

$10.485674

to
$10.543823
$1,939,236
0.50
%
to
1.45%
—
%
to
—%
4.86
 %
to
5.44%
Putnam VT International Value Fund
 
2017
3,686

$10.200436

to
$16.935698
$37,194
1.25
%
to
2.30%
1.41
%
to
1.46%
21.86
 %
to
23.15%
 
2016
14,262

$8.283132

to
$13.897450
$114,925
1.25
%
to
2.30%
1.55
%
to
2.37%
(1.19
)%
to
(0.15)%
 
2015
22,418

$8.295657

to
$14.065519
$181,713
1.25
%
to
2.30%
1.30
%
to
1.33%
(4.23
)%
to
(3.22)%
 
2014
23,587

$8.571474

to
$14.686660
$198,254
1.25
%
to
2.30%
1.33
%
to
1.51%
(11.55
)%
to
(10.61)%
 
2013
25,866

$9.589137

to
$16.603933
$244,253
1.25
%
to
2.30%
2.39
%
to
2.52%
19.43
 %
to
20.69%
Putnam VT International Equity Fund
 
2017
28,739

$11.589569

to
$17.098285
$324,315
0.85
%
to
2.75%
0.41
%
to
2.17%
23.15
 %
to
25.51%
 
2016
32,659

$8.913224

to
$13.884178
$294,529
1.25
%
to
2.75%
3.35
%
to
3.70%
(5.10
)%
to
(3.67)%
 
2015
49,032

$9.252407

to
$14.630565
$441,289
1.25
%
to
2.75%
1.10
%
to
1.15%
(2.58
)%
to
(1.10)%
 
2014
45,974

$9.355678

to
$15.017522
$421,137
1.25
%
to
2.75%
—
%
to
0.89%
(9.31
)%
to
(7.94)%
 
2013
53,270

$9.446836

to
$10.162125
$576,510
1.25
%
to
2.50%
1.41
%
to
1.71%
24.91
 %
to
26.48%
Putnam VT Small Cap Value Fund
 
2017
12,307

$21.636201

to
$29.607146
$264,445
0.85
%
to
2.70%
0.14
%
to
0.70%
5.00
 %
to
6.96%
 
2016
13,471

$19.525830

to
$28.197366
$276,555
1.25
%
to
2.70%
—
%
to
1.05%
24.10
 %
to
25.91%
 
2015
9,883

$14.115548

to
$15.507856
$163,592
1.25
%
to
2.45%
0.83
%
to
1.05%
(6.56
)%
to
(5.43)%
 
2014
14,308

$15.106103

to
$16.398051
$274,439
1.25
%
to
2.45%
0.32
%
to
0.39%
0.93
 %
to
2.15%
 
2013
115,178

$14.966864

to
$16.053056
$2,440,595
1.25
%
to
2.45%
0.65
%
to
0.75%
36.23
 %
to
37.87%
JPMorgan Insurance Trust Core Bond Portfolio
 
2017
2,305,493

$12.274080

to
$13.040154
$32,676,592
1.25
%
to
2.40%
2.58
%
to
2.63%
1.12
 %
to
2.29%


 
2016
2,561,530

$12.138605

to
$12.748775
$35,591,635
1.25
%
to
2.40%
2.77
%
to
2.84%
(0.31
)%
to
0.85%
 
2015
3,006,288

$12.175891

to
$12.641709
$41,578,351
1.25
%
to
2.40%
3.61
%
to
3.88%
(1.28
)%
to
(0.14)%
 
2014
3,881,017

$12.333558

to
$12.659001
$53,888,162
1.25
%
to
2.40%
3.84
%
to
3.86%
2.43
 %
to
3.61%
 
2013
4,840,343

$12.040964

to
$12.217394
$65,170,524
1.25
%
to
2.40%
4.55
%
to
4.62%
(3.81
)%
to
(2.69)%
JPMorgan Insurance Trust U.S. Equity Portfolio
 
2017
167,507

$28.425441

to
$30.791075
$4,794,811
1.35
%
to
2.40%
0.88
%
to
0.91%
19.43
 %
to
20.69%
 
2016
208,022

$23.552269

to
$25.781403
$4,941,254
1.35
%
to
2.40%
1.00
%
to
1.01%
8.31
 %
to
9.45%
 
2015
251,763

$21.518700

to
$23.804022
$5,467,830
1.35
%
to
2.40%
1.14
%
to
1.14%
(1.53
)%
to
(0.49)%
 
2014
307,001

$17.827021

to
$24.173549
$6,700,919
1.25
%
to
2.40%
—
%
to
0.95%
11.20
 %
to
12.49%
 
2013
369,037

$19.243071

to
$21.738466
$7,175,293
1.35
%
to
2.40%
1.21
%
to
1.33%
32.99
 %
to
34.39%
JPMorgan Insurance Trust Intrepid Mid Cap Portfolio+
 
2017
—

$19.905020

to
$29.087587
$—
1.25
%
to
2.40%
—
%
to
—%
3.96
 %
to
4.45%
 
2016
225,916

$19.056887

to
$27.980930
$5,729,698
1.25
%
to
2.40%
0.73
%
to
0.75%
9.38
 %
to
10.64%
 
2015
269,373

$17.224146

to
$25.582389
$6,192,871
1.25
%
to
2.40%
0.35
%
to
0.65%
(8.10
)%
to
(7.04)%
 
2014
330,353

$18.528810

to
$27.838671
$8,187,654
1.25
%
to
2.40%
0.63
%
to
0.65%
13.12
 %
to
14.42%
 
2013
430,868

$16.193109

to
$24.610629
$9,333,904
1.25
%
to
2.40%
1.02
%
to
1.05%
37.26
 %
to
38.84%
JPMorgan Insurance Trust Mid Cap Value Portfolio
 
2017
119,256

$28.806816

to
$32.295239
$3,453,381
1.35
%
to
2.40%
0.81
%
to
0.81%
11.07
 %
to
12.24%
 
2016
147,100

$25.665526

to
$29.077072
$3,791,920
1.35
%
to
2.40%
0.87
%
to
0.87%
11.98
 %
to
13.16%
 
2015
177,496

$22.681297

to
$25.967316
$4,053,803
1.35
%
to
2.40%
0.98
%
to
1.01%
(4.96
)%
to
(3.96)%
 
2014
214,666

$18.991034

to
$27.323907
$5,113,560
1.25
%
to
2.40%
0.68
%
to
0.79%
12.38
 %
to
13.68%
 
2013
284,535

$16.705994

to
$24.314080
$6,014,616
1.25
%
to
2.40%
1.02
%
to
1.12%
29.17
 %
to
30.66%
Putnam VT Equity Income Fund
 
2017
5,059

$23.484207

to
$30.692956
$151,942
0.50
%
to
0.75%
1.67
%
to
1.67%
17.89
 %
to
18.18%
 
2016
5,229

$20.012284

to
$25.971361
$133,076
0.50
%
to
1.45%
—
%
to
1.79%
12.01
 %
to
13.08%
 
2015
8,387

$17.866924

to
$22.967914
$174,014
0.50
%
to
1.45%
1.60
%
to
1.61%
(4.44
)%
to
(3.53)%
 
2014
8,427

$18.696791

to
$23.807401
$182,017
0.50
%
to
1.45%
—
%
to
1.70%
11.04
 %
to
12.10%
 
2013
3,045

$16.413133

to
$21.237933
$63,117
0.50
%
to
0.75%
1.90
%
to
1.91%
31.43
 %
to
31.75%
PIMCO All Asset Fund
 
2017
11,313

$12.308429

to
$13.144011
$146,745
0.50
%
to
1.45%
4.52
%
to
4.55%
11.75
 %
to
12.81%
 
2016
11,674

$11.014586

to
$11.651192
$134,456
0.50
%
to
1.45%
2.35
%
to
2.53%
11.28
 %
to
12.34%
 
2015
12,237

$9.898136

to
$10.371232
$125,613
0.50
%
to
1.45%
2.22
%
to
3.12%
(10.49
)%
to
(9.64)%
 
2014
14,522

$11.058750

to
$11.477712
$165,373
0.50
%
to
1.45%
5.10
%
to
5.11%
(0.99
)%
to
(0.05)%
 
2013
14,599

$11.169440

to
$11.482988
$166,670
0.50
%
to
1.45%
4.50
%
to
4.52%
(1.33
)%
to
(0.39)%
PIMCO StocksPLUS Global Portfolio
 
2017
27,479

$13.707092

to
$14.637587
$397,931
0.50
%
to
1.45%
3.31
%
to
3.32%
21.22
 %
to
22.38%
 
2016
37,054

$11.307594

to
$11.961135
$438,441
0.50
%
to
1.45%
5.01
%
to
5.06%
6.20
 %
to
7.21%
 
2015
44,135

$10.647811

to
$11.156688
$487,826
0.50
%
to
1.45%
5.82
%
to
5.83%
(10.33
)%
to
(9.47)%
 
2014
41,924

$11.874091

to
$12.323864
$513,126
0.50
%
to
1.45%
—
%
to
—%
(0.55
)%
to
0.40%
 
2013
65,531

$11.939466

to
$12.274554
$799,977
0.50
%
to
1.45%
2.09
%
to
2.19%
17.48
 %
to
18.60%
PIMCO Global Multi-Asset Managed Allocation Portfolio
 
2017
3,667

$10.985891

to
$11.274622
$41,112
0.75
%
to
1.45%
0.61
%
to
2.15%
12.35
 %
to
13.14%
 
2016
838

$9.777967

to
$9.777967
$8,191
1.45
%
to
1.45%
2.18
%
to
2.18%
2.42
 %
to
2.42%
 
2015
1,127

$9.546608

to
$9.546608
$10,755
1.45
%
to
1.45%
1.50
%
to
1.50%
(1.69
)%
to
(1.69)%
 
2014
1,479

$9.711208

to
$9.711208
$14,359
1.45
%
to
1.45%
2.50
%
to
2.50%
3.07
 %
to
3.07%
 
2013
1,287

$9.422341

to
$9.422341
$12,126
1.45
%
to
1.45%
3.15
%
to
3.15%
(9.23
)%
to
(9.23)%


Jennison 20/20 Focus Fund
 
2017
10,986

$2.553982

to
$27.660366
$32,831
1.40
%
to
2.00%
—
%
to
—%
27.18
 %
to
27.94%
 
2016
15,002

$2.008202

to
$21.619448
$54,270
1.40
%
to
2.00%
—
%
to
—%
(0.77
)%
to
(0.18)%
 
2015
18,387

$2.023887

to
$21.657844
$85,344
1.40
%
to
2.00%
—
%
to
—%
3.77
 %
to
4.39%
 
2014
19,143

$1.950413

to
$20.746804
$84,887
1.40
%
to
2.00%
—
%
to
—%
4.59
 %
to
5.22%
 
2013
38,613

$1.864812

to
$19.717593
$144,028
1.40
%
to
2.00%
—
%
to
—%
26.79
 %
to
27.56%
Jennison Fund
 
2017
59,180

$1.984309

to
$16.225624
$165,240
1.40
%
to
2.35%
—
%
to
—%
32.97
 %
to
34.24%
 
2016
61,143

$1.492264

to
$12.087007
$133,406
1.40
%
to
2.35%
—
%
to
—%
(3.58
)%
to
(2.66)%
 
2015
63,080

$1.547742

to
$12.417700
$155,175
1.40
%
to
2.35%
—
%
to
—%
8.45
 %
to
9.49%
 
2014
65,300

$1.427132

to
$11.341760
$151,007
1.40
%
to
2.35%
—
%
to
—%
7.04
 %
to
8.06%
 
2013
70,640

$1.333306

to
$10.495963
$171,440
1.40
%
to
2.35%
—
%
to
—%
33.93
 %
to
35.21%
Prudential Value Portfolio
 
2017
9,637

$1.873801

to
$2.096526
$19,583
1.40
%
to
2.10%
—
%
to
—%
14.09
 %
to
14.89%
 
2016
24,960

$1.642440

to
$1.824867
$44,591
1.40
%
to
2.10%
—
%
to
—%
8.65
 %
to
9.41%
 
2015
27,009

$1.511691

to
$1.667869
$44,106
1.40
%
to
2.10%
—
%
to
—%
(10.45
)%
to
(9.82)%
 
2014
35,071

$1.688033

to
$1.849417
$63,429
1.40
%
to
2.10%
—
%
to
—%
7.38
 %
to
8.14%
 
2013
44,030

$1.571987

to
$1.710270
$73,096
1.40
%
to
2.10%
—
%
to
—%
29.78
 %
to
30.69%
Prudential SP International Growth Portfolio
 
2017
7,083

$1.278383

to
$1.445916
$10,241
1.40
%
to
2.15%
—
%
to
—%
32.54
 %
to
33.54%
 
2016
11,950

$0.964520

to
$1.082783
$12,396
1.40
%
to
2.15%
—
%
to
—%
(6.20
)%
to
(5.49)%
 
2015
12,266

$1.028283

to
$1.145724
$13,515
1.40
%
to
2.15%
—
%
to
—%
0.89
 %
to
1.65%
 
2014
12,584

$1.019173

to
$1.127083
$13,687
1.40
%
to
2.15%
—
%
to
—%
(8.12
)%
to
(7.42)%
 
2013
12,758

$1.142761

to
$1.217463
$15,201
1.40
%
to
1.90%
—
%
to
—%
16.28
 %
to
16.87%
ClearBridge Variable Dividend Strategy Portfolio
 
2017
1,375

$18.057513

to
$18.057513
$24,822
1.40
%
to
1.40%
1.53
%
to
1.53%
17.52
 %
to
17.52%
 
2016
1,385

$15.365722

to
$15.365722
$21,280
1.40
%
to
1.40%
1.33
%
to
1.33%
13.39
 %
to
13.39%
 
2015
1,814

$13.551233

to
$13.551233
$24,578
1.40
%
to
1.40%
1.10
%
to
1.10%
(5.63
)%
to
(5.63)%
 
2014
5,561

$14.360146

to
$14.360146
$79,854
1.40
%
to
1.40%
2.77
%
to
2.77%
12.03
 %
to
12.03%
 
2013
3,413

$12.817744

to
$12.817744
$43,742
1.40
%
to
1.40%
1.49
%
to
1.49%
24.19
 %
to
24.19%
Western Asset Variable Global High Yield Bond Portfolio
 
2017
13,740

$2.581684

to
$2.581684
$35,473
1.40
%
to
1.40%
5.31
%
to
5.31%
7.14
 %
to
7.14%
 
2016
14,120

$2.409606

to
$2.409606
$34,023
1.40
%
to
1.40%
4.76
%
to
4.76%
14.00
 %
to
14.00%
 
2015
20,395

$2.113727

to
$2.113727
$43,110
1.40
%
to
1.40%
6.10
%
to
6.10%
(7.15
)%
to
(7.15)%
 
2014
20,880

$2.276448

to
$2.276448
$47,531
1.40
%
to
1.40%
7.17
%
to
7.17%
(2.53
)%
to
(2.53)%
 
2013
25,701

$2.228463

to
$2.335447
$59,494
1.40
%
to
1.75%
6.01
%
to
6.02%
4.43
 %
to
4.79%
ClearBridge Variable Large Cap Value Portfolio
 
2017
258,254

$2.512622

to
$2.581528
$666,689
1.40
%
to
1.55%
0.05
%
to
1.37%
13.07
 %
to
13.24%
 
2016
291,027

$2.222184

to
$2.279705
$662,586
1.40
%
to
1.55%
1.43
%
to
1.59%
11.26
 %
to
11.43%
 
2015
336,925

$1.997233

to
$2.045867
$688,569
1.40
%
to
1.55%
1.41
%
to
1.49%
(4.36
)%
to
(4.22)%
 
2014
397,427

$2.077319

to
$2.135987
$847,877
1.40
%
to
1.60%
1.71
%
to
5.60%
9.94
 %
to
10.16%
 
2013
124,316

$1.898638

to
$1.939051
$240,740
1.40
%
to
1.55%
1.52
%
to
1.69%
30.34
 %
to
30.53%
Invesco V.I. Growth and Income Fund
 
2017
63,581

$20.446817

to
$24.364558
$1,314,368
0.85
%
to
2.75%
1.22
%
to
1.29%
10.94
 %
to
13.07%
 
2016
80,338

$18.083109

to
$21.961036
$1,494,723
0.85
%
to
2.75%
0.90
%
to
0.91%
16.19
 %
to
18.42%
 
2015
85,325

$15.270465

to
$18.900842
$1,353,083
0.85
%
to
2.75%
2.55
%
to
2.61%
(5.94
)%
to
(4.13)%


 
2014
99,844

$15.928552

to
$20.093823
$1,644,004
0.85
%
to
2.75%
1.24
%
to
1.45%
6.98
 %
to
9.03%
 
2013
119,603

$14.608687

to
$18.782197
$1,807,129
0.85
%
to
2.75%
1.23
%
to
1.29%
30.14
 %
to
32.64%
Invesco V.I. Comstock Fund
 
2017
8,337

$27.072505

to
$30.317055
$233,473
1.35
%
to
2.75%
1.95
%
to
2.62%
14.39
 %
to
16.00%
 
2016
9,115

$23.667346

to
$26.135580
$218,390
1.35
%
to
2.75%
1.33
%
to
1.34%
13.81
 %
to
15.42%
 
2015
11,161

$20.794676

to
$22.644138
$234,196
1.35
%
to
2.75%
1.02
%
to
1.69%
(8.74
)%
to
(7.45)%
 
2014
14,920

$22.786296

to
$24.467663
$344,156
1.35
%
to
2.75%
0.46
%
to
0.77%
6.14
 %
to
7.64%
 
2013
21,306

$21.467646

to
$22.731362
$461,999
1.35
%
to
2.75%
1.43
%
to
1.46%
31.98
 %
to
33.84%
Invesco V.I. American Franchise Fund
 
2017
895,002

$18.217547

to
$20.796354
$17,285,030
0.85
%
to
2.80%
0.01
%
to
0.08%
23.83
 %
to
26.26%
 
2016
991,273

$14.711905

to
$16.470522
$15,346,497
0.85
%
to
2.80%
—
%
to
—%
(0.56
)%
to
1.40%
 
2015
1,171,229

$14.794375

to
$16.242854
$18,063,322
0.85
%
to
2.80%
—
%
to
—%
2.11
 %
to
4.12%
 
2014
1,365,951

$14.489106

to
$15.600423
$20,422,512
0.85
%
to
2.80%
0.04
%
to
0.04%
5.45
 %
to
7.52%
 
2013
1,684,210

$13.759971

to
$14.509057
$23,661,515
0.85
%
to
2.75%
0.44
%
to
0.47%
36.34
 %
to
38.95%
Invesco V.I. Mid Cap Growth Fund
 
2017
167,537

$15.740859

to
$16.966627
$2,776,178
1.25
%
to
2.75%
—
%
to
—%
19.17
 %
to
20.63%
 
2016
194,581

$13.208587

to
$14.065558
$2,687,446
1.25
%
to
2.75%
—
%
to
—%
(1.98
)%
to
(0.68)%
 
2015
249,472

$13.475099

to
$14.161423
$3,480,279
1.25
%
to
2.75%
—
%
to
—%
(1.54
)%
to
(0.21)%
 
2014
259,838

$13.685733

to
$14.191681
$3,645,741
1.25
%
to
2.75%
—
%
to
—%
5.11
 %
to
6.35%
 
2013
302,812

$13.020689

to
$13.482480
$4,006,422
0.85
%
to
2.75%
0.40
%
to
0.41%
33.30
 %
to
35.86%
Wells Fargo VT Index Asset Allocation Fund
 
2017
5,077

$2.361191

to
$23.489624
$27,524
1.35
%
to
2.10%
0.75
%
to
0.75%
9.92
 %
to
10.74%
 
2016
5,133

$2.132126

to
$21.370472
$25,604
1.35
%
to
2.10%
0.88
%
to
0.89%
5.43
 %
to
6.23%
 
2015
5,176

$2.007157

to
$20.269257
$25,491
1.35
%
to
2.10%
1.03
%
to
1.03%
(0.86
)%
to
(0.11)%
 
2014
5,151

$2.009342

to
$20.444198
$25,594
1.35
%
to
2.10%
1.53
%
to
1.53%
15.61
 %
to
16.48%
 
2013
5,164

$1.725118

to
$17.684334
$22,832
1.35
%
to
2.10%
1.64
%
to
1.65%
17.15
 %
to
18.03%
Wells Fargo VT International Equity Fund
 
2017
530,559

$1.261646

to
$11.386150
$936,757
1.25
%
to
2.20%
3.03
%
to
3.92%
22.14
 %
to
23.31%
 
2016
646,667

$8.305074

to
$9.234000
$884,469
1.25
%
to
2.45%
—
%
to
3.71%
0.75
 %
to
1.97%
 
2015
759,073

$8.242927

to
$9.055534
$1,052,786
1.25
%
to
2.45%
3.98
%
to
4.29%
(0.18
)%
to
1.02%
 
2014
916,944

$8.257845

to
$8.963675
$1,251,584
1.25
%
to
2.45%
2.98
%
to
3.25%
(7.59
)%
to
(6.48)%
 
2013
1,080,926

$1.074273

to
$9.584438
$1,533,961
1.25
%
to
2.50%
2.31
%
to
2.31%
16.98
 %
to
18.45%
Wells Fargo VT Small Cap Growth Fund
 
2017
41,722

$21.706710

to
$22.530277
$910,299
0.65
%
to
2.50%
—
%
to
—%
23.03
 %
to
25.04%
 
2016
47,614

$17.361509

to
$18.018017
$841,126
0.65
%
to
2.75%
—
%
to
—%
5.17
 %
to
7.05%
 
2015
61,879

$16.507795

to
$16.831607
$1,040,984
0.65
%
to
2.75%
—
%
to
—%
(5.28
)%
to
(3.51)%
 
2014
73,196

$17.444155

to
$17.622403
$1,276,117
0.65
%
to
2.50%
—
%
to
—%
(4.10
)%
to
(2.51)%
 
2013
100,196

$17.893814

to
$18.376160
$1,790,728
0.65
%
to
2.50%
—
%
to
—%
46.84
 %
to
49.26%
Wells Fargo VT Discovery Fund
 
2017
278

$33.198862

to
$33.198862
$9,240
1.35
%
to
1.35%
—
%
to
—%
27.40
 %
to
27.40%
 
2016
280

$26.058826

to
$26.058826
$7,307
1.35
%
to
1.35%
—
%
to
—%
6.20
 %
to
6.20%
 
2015
283

$24.537066

to
$24.537066
$6,936
1.35
%
to
1.35%
—
%
to
—%
(2.78
)%
to
(2.78)%
 
2014
285

$25.239790

to
$25.239790
$7,188
1.35
%
to
1.35%
—
%
to
—%
(0.99
)%
to
(0.99)%
 
2013
287

$25.492367

to
$25.492367
$7,313
1.35
%
to
1.35%
0.01
%
to
0.01%
41.88
 %
to
41.88%
Wells Fargo VT Opportunity Fund
 
2017
312,160

$19.668343

to
$22.612128
$6,589,273
0.50
%
to
2.70%
0.92
%
to
0.93%
17.51
 %
to
20.12%


 
2016
390,053

$16.737469

to
$18.824251
$6,934,766
0.50
%
to
2.70%
2.31
%
to
2.32%
9.52
 %
to
11.96%
 
2015
485,829

$15.282108

to
$16.813490
$7,798,176
0.50
%
to
2.70%
0.40
%
to
0.40%
(5.44
)%
to
(3.33)%
 
2014
570,752

$16.160679

to
$17.392982
$9,578,830
0.50
%
to
2.70%
0.27
%
to
0.30%
7.75
 %
to
10.15%
 
2013
651,119

$14.997820

to
$15.790336
$10,026,795
0.50
%
to
2.70%
0.43
%
to
0.43%
27.51
 %
to
30.34%
HIMCO VIT Index Fund
 
2017
160,611

$9.850096

to
$32.314396
$4,335,838
0.30
%
to
1.55%
1.79
%
to
1.82%
19.27
 %
to
20.77%
 
2016
199,812

$8.258880

to
$26.757917
$4,462,379
0.30
%
to
1.55%
2.14
%
to
2.18%
9.63
 %
to
11.00%
 
2015
380,715

$7.533751

to
$24.105494
$7,346,949
0.30
%
to
1.55%
0.36
%
to
0.36%
(0.73
)%
to
0.52%
 
2014
445,505

$7.588987

to
$23.980581
$8,233,419
0.30
%
to
1.55%
—
%
to
—%
4.53
 %
to
5.04%
HIMCO VIT Portfolio Diversifier Fund
 
2017
4,755,082

$6.615585

to
$7.159054
$32,935,412
0.30
%
to
1.50%
1.03
%
to
1.05%
(4.80
)%
to
(3.65)%
 
2016
4,883,341

$6.949282

to
$7.430450
$35,259,019
0.30
%
to
1.50%
—
%
to
—%
(5.97
)%
to
(4.84)%
 
2015
5,383,368

$7.390702

to
$7.808156
$40,909,430
0.30
%
to
1.50%
0.88
%
to
0.90%
(3.35
)%
to
(2.18)%
 
2014
5,887,625

$7.646781

to
$7.982319
$45,971,154
0.30
%
to
1.50%
0.16
%
to
0.16%
(1.71
)%
to
(1.21)%
HIMCO VIT American Funds Asset Allocation Fund+
 
2017
—

$21.420711

to
$24.086287
$—
0.50
%
to
2.70%
1.39
%
to
1.40%
11.55
 %
to
13.75%
 
2016
703,450

$19.202463

to
$21.174688
$10,994,667
0.50
%
to
2.70%
2.57
%
to
2.58%
6.20
 %
to
8.57%
 
2015
809,331

$18.080606

to
$19.503864
$11,936,057
0.50
%
to
2.70%
1.19
%
to
1.48%
(1.58
)%
to
0.61%
 
2014
968,395

$18.370397

to
$19.385213
$14,244,987
0.50
%
to
2.70%
—
%
to
—%
0.71
 %
to
1.71%
HIMCO VIT American Funds Blue Chip Income and Growth Fund+
 
2017
—

$25.085495

to
$29.235710
$—
0.30
%
to
2.70%
—
%
to
2.38%
7.48
 %
to
9.79%
 
2016
339,197

$23.339640

to
$26.627915
$5,834,754
0.30
%
to
2.70%
—
%
to
2.42%
15.31
 %
to
18.11%
 
2015
373,850

$20.241470

to
$22.545865
$5,481,238
0.30
%
to
2.70%
—
%
to
2.67%
(5.88
)%
to
(3.59)%
 
2014
541,025

$21.505458

to
$23.129642
$8,277,687
0.50
%
to
2.70%
—
%
to
—%
4.60
 %
to
5.61%
HIMCO VIT American Funds Bond Fund+
 
2017
—

$11.702574

to
$13.036081
$—
0.50
%
to
2.70%
2.67
%
to
2.84%
0.83
 %
to
2.81%
 
2016
2,009,419

$11.606782

to
$12.679373
$22,126,930
0.50
%
to
2.70%
3.31
%
to
3.45%
(0.08
)%
to
2.14%
 
2015
2,302,388

$11.615955

to
$12.413281
$25,074,597
0.50
%
to
2.70%
1.77
%
to
1.79%
(2.72
)%
to
(0.56)%
 
2014
2,607,898

$11.940819

to
$12.482760
$28,842,823
0.50
%
to
2.70%
—
%
to
—%
(0.24
)%
to
0.75%
HIMCO VIT American Funds Global Bond Fund+
 
2017
—

$10.782393

to
$12.016841
$—
0.50
%
to
2.70%
0.03
%
to
0.41%
3.10
 %
to
5.14%
 
2016
195,130

$10.457762

to
$11.429702
$2,047,315
0.50
%
to
2.70%
1.25
%
to
1.48%
(0.33
)%
to
1.89%
 
2015
211,199

$10.491931

to
$11.217539
$2,195,411
0.50
%
to
2.70%
0.18
%
to
1.30%
(6.94
)%
to
(4.87)%
 
2014
282,563

$11.274306

to
$11.791607
$3,124,726
0.50
%
to
2.70%
—
%
to
—%
(4.94
)%
to
(3.98)%
HIMCO VIT American Funds Global Growth and Income Fund+
 
2017
—

$24.016137

to
$25.139894
$—
0.50
%
to
2.70%
1.41
%
to
1.51%
20.85
 %
to
23.23%
 
2016
610,788

$19.872892

to
$20.400844
$7,883,384
0.50
%
to
2.70%
1.91
%
to
1.96%
4.17
 %
to
6.48%
 
2015
729,340

$19.078079

to
$19.158852
$8,902,134
0.50
%
to
2.70%
3.40
%
to
3.41%
(4.26
)%
to
(2.13)%
 
2014
870,819

$19.576024

to
$19.927300
$10,977,894
0.50
%
to
2.70%
—
%
to
—%
(1.64
)%
to
(0.68)%
HIMCO VIT American Funds Global Growth Fund+
 
2017
—

$26.626550

to
$26.859061
$—
0.50
%
to
2.70%
0.84
%
to
0.91%
26.66
 %
to
29.16%
 
2016
173,681

$20.795815

to
$21.021891
$2,472,320
0.50
%
to
2.70%
1.91
%
to
1.97%
(2.52
)%
to
(0.35)%
 
2015
180,099

$20.869025

to
$21.565093
$2,564,372
0.50
%
to
2.70%
0.73
%
to
0.81%
3.76
 %
to
6.06%
 
2014
207,773

$19.675954

to
$20.784553
$2,818,287
0.50
%
to
2.70%
—
%
to
—%
(0.84
)%
to
0.08%
HIMCO VIT American Funds Global Small Capitalization Fund+
 
2017
—

$22.645180

to
$24.959629
$—
0.50
%
to
2.70%
0.13
%
to
0.17%
18.64
 %
to
20.98%


 
2016
584,693

$19.001544

to
$21.038167
$6,726,620
0.30
%
to
2.70%
—
%
to
0.42%
(1.04
)%
to
1.36%
 
2015
678,686

$18.503779

to
$21.259400
$7,747,579
0.50
%
to
2.70%
—
%
to
—%
(2.69
)%
to
(0.53)%
 
2014
767,195

$18.601443

to
$21.847319
$8,846,403
0.50
%
to
2.70%
—
%
to
—%
(3.20
)%
to
(2.30)%
HIMCO VIT American Funds Growth Fund+
 
2017
—

$30.498410

to
$32.610278
$—
0.30
%
to
2.75%
—
%
to
0.47%
22.18
 %
to
24.87%
 
2016
2,798,615

$24.960991

to
$26.115777
$45,226,399
0.30
%
to
2.75%
—
%
to
0.32%
6.14
 %
to
8.78%
 
2015
3,486,242

$23.516099

to
$24.008732
$52,215,077
0.30
%
to
2.75%
—
%
to
0.91%
3.61
 %
to
6.18%
 
2014
4,105,677

$22.363732

to
$22.696589
$58,431,416
0.50
%
to
2.75%
—
%
to
—%
2.65
 %
to
3.63%
HIMCO VIT American Funds Growth-Income Fund+
 
2017
—

$26.231704

to
$28.909465
$—
0.50
%
to
2.70%
1.66
%
to
1.74%
15.02
 %
to
17.29%
 
2016
1,506,213

$22.805660

to
$24.647958
$24,549,345
0.50
%
to
2.70%
1.59
%
to
1.66%
8.25
 %
to
10.65%
 
2015
1,813,589

$21.068239

to
$22.274851
$27,011,054
0.50
%
to
2.70%
0.93
%
to
1.04%
(1.50
)%
to
0.69%
 
2014
2,083,358

$21.389833

to
$22.122666
$30,983,947
0.50
%
to
2.70%
—
%
to
—%
1.66
 %
to
2.66%
HIMCO VIT American Funds International Fund+
 
2017
—

$19.407948

to
$19.450320
$—
0.30
%
to
2.70%
—
%
to
1.27%
25.79
 %
to
28.50%
 
2016
2,649,235

$15.136960

to
$15.428869
$25,959,834
0.30
%
to
2.70%
—
%
to
1.38%
0.52
 %
to
2.96%
 
2015
3,132,226

$14.511118

to
$15.348523
$30,118,413
0.50
%
to
2.70%
1.19
%
to
1.21%
(7.37
)%
to
(5.31)%
 
2014
3,511,918

$15.494184

to
$16.569762
$35,929,589
0.30
%
to
2.70%
—
%
to
—%
(6.81
)%
to
(5.87)%
HIMCO VIT American Funds New World Fund+
 
2017
—

$18.595845

to
$19.151094
$—
0.50
%
to
2.70%
0.42
%
to
0.44%
24.38
 %
to
26.83%
 
2016
386,224

$14.883842

to
$15.397371
$3,954,961
0.30
%
to
2.70%
—
%
to
2.12%
2.09
 %
to
4.57%
 
2015
464,236

$14.049114

to
$15.081704
$4,589,521
0.50
%
to
2.70%
0.88
%
to
1.07%
(6.09
)%
to
(4.00)%
 
2014
534,411

$14.796659

to
$16.060062
$5,553,590
0.30
%
to
2.70%
—
%
to
—%
(13.28
)%
to
(12.39)%
MFS® Core Equity Portfolio
 
2017
372,778

$13.265075

to
$13.797841
$5,067,714
1.35
%
to
2.70%
0.63
%
to
0.88%
21.50
 %
to
23.15%
 
2016
419,240

$10.917513

to
$11.257684
$4,652,446
1.10
%
to
2.70%
0.78
%
to
0.86%
8.41
 %
to
10.16%
 
2015
477,344

$10.070613

to
$10.219591
$4,844,572
1.10
%
to
2.70%
0.53
%
to
0.55%
0.71
 %
to
2.20%
MFS® Massachusetts Investors Growth Stock Portfolio
 
2017
530,023

$12.932622

to
$13.471689
$7,033,724
1.35
%
to
2.75%
0.55
%
to
0.65%
24.94
 %
to
26.70%
 
2016
613,346

$10.350730

to
$10.683492
$6,458,277
1.10
%
to
2.75%
0.59
%
to
0.60%
3.20
 %
to
4.91%
 
2015
672,245

$10.029965

to
$10.183003
$6,798,502
1.10
%
to
2.75%
0.49
%
to
0.50%
0.30
 %
to
1.83%
MFS® Research International Portfolio
 
2017
826,341

$11.368649

to
$12.034167
$9,677,041
0.85
%
to
2.80%
1.84
%
to
1.89%
24.75
 %
to
27.21%
 
2016
1,020,912

$9.113093

to
$9.460449
$9,488,547
0.85
%
to
2.80%
1.63
%
to
1.64%
(3.44
)%
to
(1.54)%
 
2015
1,194,012

$9.438105

to
$9.608632
$11,376,017
0.85
%
to
2.80%
1.97
%
to
1.98%
(5.62
)%
to
(3.91)%
Columbia Variable Portfolio - Large Cap Growth Fund
 
2017
577,359

$13.058934

to
$13.317231
$7,631,383
1.70
%
to
2.80%
—
%
to
—%
24.60
 %
to
25.98%
 
2016
640,820

$10.480645

to
$10.571146
$6,752,146
1.70
%
to
2.80%
—
%
to
—%
4.81
 %
to
5.71%
Columbia Variable Portfolio - Select International Equity Fund
 
2017
446,682

$12.051765

to
$12.290283
$5,443,403
1.70
%
to
2.80%
1.86
%
to
1.90%
23.67
 %
to
25.04%
 
2016
510,759

$9.744961

to
$9.829212
$5,001,617
1.70
%
to
2.80%
1.08
%
to
1.10%
(2.55
)%
to
(1.71)%
Variable Portfolio - Loomis Sayles Growth Fund
 
2017
407,908

$13.656632

to
$13.914318
$5,632,950
1.70
%
to
2.75%
—
%
to
—%
29.43
 %
to
30.79%
 
2016
452,246

$10.551696

to
$10.638654
$4,794,952
1.70
%
to
2.75%
—
%
to
—%
5.52
 %
to
6.39%

*Represents the annualized contract expenses of the Sub-Account for the period indicated and includes only those expenses that are charged through a reduction in the unit values. Excluded are expenses of the Funds and charges made directly to contract owner accounts through the redemption of units. Where the expense ratio is the same for each unit value, it is presented in both the lowest and highest columns.
**These amounts represent the dividends, excluding distributions of capital gains, received by the Sub-Account from the Fund, net of management fees assessed by the Fund’s manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense risk charges, that result in direct reductions in the unit values. The recognition of investment income by the Sub-Account is affected by the timing of the declaration of dividends by the Fund in which the Sub-Account invests. Where the investment income ratio is the same for each unit value, it is presented in both the lowest and highest columns.
***Represents the total return for the period indicated and reflects a deduction only for expenses assessed through the daily unit value calculation. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Investment options with a date notation in the notes on the Statements of Operations indicate the effective date of that investment option in the Account. The total return is calculated for the period indicated or from the effective date through the end of the reporting period.
# Rounded units/unit fair values. Where only one unit value exists, it is presented in both the lowest and highest columns.
+ See Note 1 for additional information related to this Sub-Account.

7. Subsequent Events:

Management has evaluated events subsequent to December 31, 2017 through the date of issuance noting there are no subsequent events requiring adjustment or disclosure in the financial statements.



 


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholder of
Hartford Life Insurance Company
Hartford, Connecticut
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Hartford Life Insurance Company and subsidiaries (the "Company") as of December 31, 2017 and 2016, the related consolidated statements of operations, comprehensive income, shareholders' equity, and cash flows, for each of the three years in the period ended December 31, 2017, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2017 and 2016, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2017, in conformity with the accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company'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 Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’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. We believe that our audits provide a reasonable basis for our opinion.


/s/ DELOITTE & TOUCHE LLP
Hartford, Connecticut
March 1, 2018


We have served as the Company’s auditor since 2002.


F- 1


HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
Consolidated Statements of Operations
 
For the years ended December 31,
(In millions)
2017
2016
2015
Revenues
 
 
 
Fee income and other
$
906

$
969

$
1,097

Earned premiums
105

203

92

Net investment income
1,281

1,373

1,456

Net realized capital gains (losses):
 
 
 
Total other-than-temporary impairment (“OTTI”) losses
(16
)
(29
)
(63
)
 OTTI losses recognized in other comprehensive income
2

1

2

Net OTTI losses recognized in earnings
(14
)
(28
)
(61
)
Other net realized capital losses
(46
)
(135
)
(85
)
Total net realized capital losses
(60
)
(163
)
(146
)
Total revenues
2,232

2,382

2,499

Benefits, losses and expenses
 
 
 
Benefits, loss and loss adjustment expenses
1,406

1,437

1,402

Amortization of deferred policy acquisition costs ("DAC")
48

114

69

Insurance operating costs and other expenses
400

472

524

Reinsurance gain on disposition
—

—

(28
)
Dividends to policyholders
2

3

2

Total benefits, losses and expenses
1,856

2,026

1,969

Income before income taxes
376

356

530

Income tax expense
422

74

30

Net (loss) income
$
(46
)
$
282

$
500

See Notes to Consolidated Financial Statements.

F- 2


HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income (Loss)
 
Year Ended December 31,
(In millions)
2017
2016
2015
Net (loss) income
$
(46
)
$
282

$
500

Other comprehensive income (loss):
 
 
 
Change in net unrealized gain on securities
329

154

(615
)
Change in net gain on cash-flow hedging instruments
(28
)
(25
)
(13
)
OCI, net of tax
301

129

(628
)
Comprehensive income (loss)
$
255

$
411

$
(128
)
 See Notes to Consolidated Financial Statements.

F- 3


HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
 
As of December 31,
(In millions, except for share data)
2017
2016
Assets
 
 
Investments:
 
 
Fixed maturities, available-for-sale, at fair value (amortized cost of $20,914 and $22,507)
$
22,799

$
23,819

Fixed maturities, at fair value using the fair value option
32

82

Equity securities, available-for-sale, at fair value (cost of $140 and $142)
154

152

Mortgage loans (net of allowance for loan losses of $0 and $19)
2,872

2,811

Policy loans, at outstanding balance
1,432

1,442

Limited partnerships and other alternative investments
1,001

930

Other investments
213

293

Short-term investments
1,094

1,349

Total investments
29,597

30,878

Cash
537

554

Premiums receivable and agents’ balances, net
15

18

Reinsurance recoverables
20,785

20,725

Deferred policy acquisition costs
405

463

Deferred income taxes, net
556

1,437

Other assets
1,003

606

Separate account assets
115,834

115,665

Total assets
$
168,732

$
170,346

Liabilities
 
 
Reserve for future policy benefits
$
14,482

$
14,000

Other policyholder funds and benefits payable
29,228

30,588

Other liabilities
2,508

2,272

Separate account liabilities
115,834

115,665

Total liabilities
162,052

162,525

Commitments and Contingencies (Note 10)
 
 
Stockholder’s Equity
 
 
Common stock—1,000 shares authorized, issued and outstanding, par value $5,690
6

6

Additional paid-in capital
3,539

4,935

Accumulated other comprehensive income, net of tax
1,023

722

Retained earnings
2,112

2,158

Total stockholder’s equity
6,680

7,821

Total liabilities and stockholder’s equity
$
168,732

$
170,346

See Notes to Consolidated Financial Statements.

F- 4


HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
Consolidated Statements of Changes in Stockholder's Equity
 
Year Ended December 31,
(In millions, except for share data)
2017
2016
2015
Common Stock
$
6

$
6

$
6

Additional Paid-in Capital
 
 
 
Additional Paid-in Capital, beginning of period
4,935

5,687

6,688

Return of capital to parent
(1,396
)
(752
)
(1,001
)
Additional Paid-in Capital, end of period
3,539

4,935

5,687

Retained Earnings
 
 
 
Retained Earnings, beginning of period
2,158

1,876

1,376

Net (loss) income
(46
)
282

500

Retained Earnings, end of period
2,112

2,158

1,876

Accumulated Other Comprehensive Income, net of tax
 
 
 
Accumulated Other Comprehensive Income, net of tax, beginning of period
722

593

1,221

Total other comprehensive income
301

129

(628
)
Accumulated Other Comprehensive Income, net of tax, end of period
1,023

722

593

Total Stockholder’s Equity
$
6,680

$
7,821

$
8,162

See Notes to Consolidated Financial Statements.

F- 5


HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
Consolidated Statements of Cash Flows
 
For the years ended December 31,
(In millions)
2017
2016
2015
Operating Activities
 
 
 
Net (loss) income
$
(46
)
$
282

$
500

Adjustments to reconcile net (loss) income to net cash provided by operating activities
 
 
 
Net realized capital losses
60

163

146

Amortization of deferred policy acquisition costs
48

114

69

Additions to deferred policy acquisition costs
(2
)
(7
)
(7
)
Reinsurance gain on disposition
—

—

(28
)
Depreciation and amortization (accretion), net
31

9

(14
)
Other operating activities, net
143

33

38

Change in assets and liabilities:
 
 
 
Decrease (increase) in reinsurance recoverables
4

117

(14
)
(Decrease) increase in accrued and deferred income taxes
(5
)
278

(62
)
Impact of tax reform on accrued and deferred income taxes
396

—

—

Increase in unpaid losses and loss adjustment expenses, reserve for future policy benefits, and unearned premiums
387

111

276

Net changes in other assets and other liabilities
(219
)
(316
)
(222
)
Net cash provided by operating activities
797

784

682

Investing Activities
 
 
 
Proceeds from the sale/maturity/prepayment of:
 
 
 
Fixed maturities, available-for-sale
10,315

10,152

11,465

Fixed maturities, fair value option
50

68

107

Equity securities, available-for-sale
203

321

586

Mortgage loans
396

371

467

Partnerships
113

395

252

Payments for the purchase of:
 
 
 
Fixed maturities and short-term investments, available-for-sale
(8,713
)
(8,889
)
(11,755
)
Fixed maturities, fair value option
—

(29
)
(67
)
Equity securities, available-for-sale
(199
)
(58
)
(535
)
Mortgage loans
(469
)
(263
)
(282
)
Partnerships
(235
)
(151
)
(199
)
Net payments for derivatives
(283
)
(261
)
(167
)
Net increase (decrease) in policy loans
12

2

(31
)
Net additions to property and equipment
(18
)
—

—

Net proceeds from (payments for) short-term investments
251

(769
)
1,604

Other investing activities, net
43

(25
)
1

Net cash provided by investing activities
1,466

864

1,446

Financing Activities
 
 
 
Deposits and other additions to investment and universal life-type contracts
4,549

4,162

4,674

Withdrawals and other deductions from investment and universal life-type contracts
(13,749
)
(14,871
)
(16,972
)
Net transfers from separate accounts related to investment and universal life-type contracts
7,969

9,811

10,987

Net increase in securities loaned or sold under agreements to repurchase
360

268

264

Return of capital to parent
(1,396
)
(752
)
(1,001
)
Net repayments at maturity or settlement of consumer notes
(13
)
(17
)
(33
)
Net cash used for financing activities
(2,280
)
(1,399
)
(2,081
)
Net (decrease) increase in cash
(17
)
249

47

Cash — beginning of year
554

305

258

Cash — end of year
$
537

$
554

$
305

Supplemental Disclosure of Cash Flow Information
 
 
 
Income tax received (paid)
57

210

(80
)
See Notes to Consolidated Financial Statements.

F- 6

HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollar amounts in millions, unless otherwise stated)



1. Basis of Presentation and Significant Accounting Policies
Basis of Presentation
Hartford Life Insurance Company (together with its subsidiaries, “HLIC”, “Company”, “we” or “our”) is a provider of insurance and investment products in the United States (“U.S.”) and is a wholly-owned subsidiary of Hartford Life, Inc., a Delaware corporation ("HLI"). The Hartford Financial Services Group, Inc. (“The Hartford”) is the ultimate parent of the Company.
During the year ended December 31, 2017, the Company paid dividends of $1.4 billion to its parent.
The Consolidated Financial Statements have been prepared on the basis of accounting principles generally accepted in the United States of America (“U.S. GAAP”), which differ materially from the accounting practices prescribed by various insurance regulatory authorities.
Consolidation
The Consolidated Financial Statements include the accounts of HLIC and entities the Company directly or indirectly has a controlling financial interest in which the Company is required to consolidate. Entities in which HLIC has significant influence over the operating and financing decisions but is not required to consolidate are reported using the equity method. All intercompany transactions and balances between HLIC and its subsidiaries have been eliminated.
Use of Estimates
The preparation of financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
The most significant estimates include those used in determining estimated gross profits used in the valuation and amortization of assets and liabilities associated with variable annuity and other universal life-type contracts; evaluation of other-than-temporary impairments on available-for-sale securities and valuation allowances on investments; living benefits required to be fair valued; valuation of investments and derivative instruments; valuation allowance on deferred tax assets; and contingencies relating to corporate litigation and regulatory matters. Certain of these estimates are particularly sensitive to market conditions, and deterioration and/or volatility in the worldwide debt or equity markets could have a material impact on the Consolidated Financial Statements.
Reclassifications
Certain reclassifications have been made to prior year financial information to conform to the current year presentation.
Sale of Life and Annuity Run-off Business
On December 3, 2017, the Company’s indirect parent, Hartford Holdings, Inc. ("HHI") entered into a definitive agreement to sell Hartford Life, Inc. ("HLI"), the Company's direct parent, to a group of investors led by Cornell Capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP, Global Atlantic Financial Group, Pine Brook and J. Safra Group. Under the terms of the purchase and sale agreement, the investor group will form a limited partnership that will acquire HLI, a holding company, and HLI’s life and annuity operating subsidiaries, including the Company.
Future Adoption of New Accounting Standards
Reclassification of Effect of Tax Rate Change from AOCI to Retained Earnings
In February, the FASB issued new accounting guidance for the effect on deferred tax assets and liabilities related to items recorded in accumulated other comprehensive income ("AOCI") resulting from legislated tax reform enacted on December 22, 2017. The tax reform reduced the federal tax rate applied to the Company’s deferred tax balances from 35% to 21% on enactment.  Under U.S. GAAP the Company recorded the total effect of the change in enacted tax rates on deferred tax balances in the income tax expense component of net income.  The new accounting guidance permits the Company to reclassify $193 out of AOCI and into retained earnings for the “stranded” amount in AOCI that resulted from recording the tax effects of unrealized investment gains at a 35% tax rate because the 14 point reduction in tax rate was recognized in net income instead of other comprehensive income. The Company will adopt the new guidance as of January 1, 2018 and make this $193 reclassification.

F- 7

HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
1. Basis of Presentation and Significant Accounting Policies (continued)


Hedging Activities
The FASB issued updated guidance on hedge accounting. The updates allow hedge accounting for new types of interest rate hedges of financial instruments and simplify documentation requirements to qualify for hedge accounting. In addition, any gain or loss from hedge ineffectiveness will be reported in the same income statement line with the effective hedge results and the hedged transaction. For cash flow hedges, the ineffectiveness will be recognized in earnings only when the hedged transaction affects earnings; otherwise, the ineffectiveness gains or losses will remain in AOCI. Under current accounting, total hedge ineffectiveness is reported separately in realized gains and losses apart from the hedged transaction. The updated guidance is effective January 1, 2019 through a cumulative effect adjustment that will reclassify cumulative ineffectiveness on open cash flow hedges from retained earnings to AOCI. Early adoption is permitted as of the beginning of a year. The Company has not yet determined the timing for adoption or estimated the effect on the Company’s financial statements.
Financial Instruments - Credit Losses
The FASB issued updated guidance for recognition and measurement of credit losses on financial instruments. The new guidance will replace the “incurred loss” approach with an “expected loss” model for recognizing credit losses for instruments carried at other than fair value, which will initially result in the recognition of greater allowances for losses. The allowance will be an estimate of credit losses expected over the life of debt instruments, such as mortgage loans, reinsurance recoverables and receivables. Credit losses on fixed maturities available-for-sale (“AFS”) carried at fair value will continue to be measured like other-than-temporary impairments (“OTTI”); however, the losses will be recognized through an allowance and no longer as an adjustment to the cost basis. Recoveries of OTTI will be recognized as reversals of valuation allowances and no longer accreted as investment income through an adjustment to the investment yield. The allowance on fixed maturities AFS cannot cause the net carrying value to be below fair value and, therefore, it is possible that future increases in fair value due to decreases in market interest rates could cause the reversal of a valuation allowance and increase net income. The new guidance also requires purchased financial assets with a more-than-insignificant amount of credit deterioration since original issuance to be recorded based on contractual amounts due and an initial allowance recorded at the date of purchase. The guidance is effective January 1, 2020 through a cumulative-effect adjustment to retained earnings for the change in the allowance for credit losses for debt instruments carried at other than fair value. No allowance will be recognized at adoption for fixed maturities AFS; rather, their cost basis will be evaluated for an allowance for credit losses prospectively. The Company expects to adopt the updated guidance January 1, 2020, as required, although earlier adoption is permitted as of January 1, 2019. The Company has not yet determined the effect on the Company’s consolidated financial statements and the ultimate impact of the adoption will depend on the composition of the debt instruments and market conditions at the adoption date. Significant implementation matters yet to be addressed include estimating lifetime expected losses on debt instruments carried at other than fair value, determining the impact of valuation allowances on net investment income from fixed maturities AFS, updating our investment accounting system functionality to maintain adjustable valuation allowance on fixed maturities, AFS, subject to a fair value floor, and developing a detailed implementation plan.
Financial Instruments - Recognition and Measurement
The FASB issued updated guidance for the recognition and measurement of financial instruments. The new guidance will require investments in equity securities to be measured at fair value with any changes in valuation reported in net income except for investments that are consolidated or are accounted for under the equity method of accounting. The new guidance will also require a deferred tax asset resulting from net unrealized losses on available-for-sale fixed maturities that are recognized in AOCI to be evaluated for recoverability in combination with the Company’s other deferred tax assets. Under existing guidance, the Company measures investments in equity securities, AFS, at fair value with changes in fair value reported in other comprehensive income. As required, the Company will adopt the guidance effective January 1, 2018 through a cumulative effect adjustment to retained earnings. Early adoption is not allowed. The impact to the Company will be increased volatility in net income beginning in 2018. Any difference in the evaluation of deferred tax assets may also affect stockholder's equity. Cash flows will not be affected. The impact will depend on the composition of the Company’s investment portfolio in the future and changes in fair value of the Company’s investments. As of January 1, 2018, the Company will reclassify from AOCI to retained earnings net unrealized gains of $11 related to equity securities, AFS having a fair value of $154. Had the new accounting guidance been in place since the beginning of 2017, the Company would have recognized mark-to-market gains of $3 after-tax in net income for the year ended December 31, 2017.
Revenue Recognition
The FASB issued updated guidance for recognizing revenue. The guidance excludes insurance contracts and financial instruments. Revenue is to be recognized when, or as, goods or services are transferred to customers in an amount that reflects the consideration that an entity is expected to receive in exchange for those goods or services, and this accounting guidance is similar to current accounting for many transactions. The Company will adopt the guidance on January 1, 2018, as required, and the adoption will have no effect on the Company’s financial position, results of operations or cash flows.

F- 8

HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
1. Basis of Presentation and Significant Accounting Policies (continued)


Significant Accounting Policies
The Company’s significant accounting policies are as follows:
Segment Information
The Company has no reportable segments and is comprised of the run-off operations of annuity, institutional and private-placement life insurance businesses. The Company's determination that it has no reportable segments is based on the fact that the Company's chief operating decision maker reviews the Company's financial performance at a consolidated level.
Revenue Recognition
For investment and universal life-type contracts, the amounts collected from policyholders are considered deposits and are not included in revenue. Fee income for variable annuity and other universal life-type contracts consists of policy charges for policy administration, cost of insurance charges and surrender charges assessed against policyholders’ account balances and are recognized in the period in which services are provided. For the Company’s traditional life products, premiums are recognized as revenue when due from policyholders.
Income Taxes
The Company recognizes taxes payable or refundable for the current year and deferred taxes for the tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. A deferred tax provision is recorded for the tax effects of differences between the Company's current taxable income and its income before tax under generally accepted accounting principles in the Consolidated Statements of Operations. For deferred tax assets, the Company records a valuation allowance that is adequate to reduce the total deferred tax asset to an amount that will more likely than not be realized.
The Company is included in The Hartford’s consolidated U.S. Federal income tax return. The Company and The Hartford have entered into a tax sharing agreement under which each member in the consolidated U.S. Federal income tax return will make payments between them such that, with respect to any period, the amount of taxes to be paid by the Company, subject to certain tax adjustments, is consistent with the “parent down” approach. Under this approach, the Company’s deferred tax assets and tax attributes are considered realized by it so long as the group is able to recognize (or currently use) the related deferred tax asset or attribute. Thus the need for a valuation allowance is determined at the consolidated return level rather than at the level of the individual entities comprising the consolidated group.
Investments
Overview
The Company’s investments in fixed maturities include bonds, structured securities, redeemable preferred stock and commercial paper. Most of these investments, along with certain equity securities, which include common and non-redeemable preferred stocks, are classified as available-for-sale ("AFS") and are carried at fair value. The after-tax difference between fair value and cost or amortized cost is reflected in stockholders’ equity as a component of AOCI, after adjustments for the effect of deducting certain life and annuity deferred policy acquisition costs and reserve adjustments. Effective January 1, 2018, equity securities will be measured at fair value with any changes in valuation reported in net income. For further information, see Financial Instruments - Recognition and Measurement discussion above. Fixed maturities for which the Company elected the fair value option are classified as FVO, generally certain securities that contain embedded credit derivatives, and are carried at fair value with changes in value recorded in realized capital gains and losses. Policy loans are carried at outstanding balance. Mortgage loans are recorded at the outstanding principal balance adjusted for amortization of premiums or discounts and net of valuation allowances. Short-term investments are carried at amortized cost, which approximates fair value. Limited partnerships and other alternative investments are reported at their carrying value and are primarily accounted for under the equity method with the Company’s share of earnings included in net investment income. Recognition of income related to limited partnerships and other alternative investments is delayed due to the availability of the related financial information, as private equity and other funds are generally on a three-month delay and hedge funds on a one-month delay. Accordingly, income for the years ended December 31, 2017, 2016, and 2015 may not include the full impact of current year changes in valuation of the underlying assets and liabilities of the funds, which are generally obtained from the limited partnerships and other alternative investments’ general partners. Other investments primarily consist of derivative instruments which are carried at fair value.

F- 9

HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
1. Basis of Presentation and Significant Accounting Policies (continued)


Net Realized Capital Gains and Losses
Net realized capital gains and losses from investment sales are reported as a component of revenues and are determined on a specific identification basis. Net realized capital gains and losses also result from fair value changes in fixed maturities and equity securities FVO, and derivatives contracts (both free-standing and embedded) that do not qualify, or are not designated, as a hedge for accounting purposes, as well as ineffectiveness on derivatives that qualify for hedge accounting treatment, and the change in value of certain fair-value hedging instruments and their associated hedged item. Impairments and mortgage loan valuation allowances are recognized as net realized capital losses in accordance with the Company’s impairment and mortgage loan valuation allowance policies as discussed in Note 3 - Investments of Notes to Consolidated Financial Statements. Foreign currency transaction remeasurements are also included in net realized capital gains and losses.
Net Investment Income
Interest income from fixed maturities and mortgage loans is recognized when earned on the constant effective yield method based on estimated timing of cash flows. The amortization of premium and accretion of discount for fixed maturities also takes into consideration call and maturity dates that produce the lowest yield. For securitized financial assets subject to prepayment risk, yields are recalculated and adjusted periodically to reflect historical and/or estimated future prepayments using the retrospective method; however, if these investments are impaired and for certain other asset-backed securities, any yield adjustments are made using the prospective method. Prepayment fees and make-whole payments on fixed maturities and mortgage loans are recorded in net investment income when earned. For equity securities, dividends are recognized as investment income on the ex-dividend date. Limited partnerships and other alternative investments primarily use the equity method of accounting to recognize the Company’s share of earnings; however, for a portion of those investments, the Company used investment fund accounting applied to a wholly-owned fund of funds which was liquidated during 2016. For impaired debt securities, the Company accretes the new cost basis to the estimated future cash flows over the expected remaining life of the security by prospectively adjusting the security’s yield, if necessary. The Company’s non-income producing investments were not material for the years ended December 31, 2017, 2016 and 2015.
Derivative Instruments
Overview
The Company utilizes a variety of over-the-counter ("OTC"), transactions cleared through central clearing houses ("OTC-cleared") and exchange traded derivative instruments as part of its overall risk management strategy as well as to enter into replication transactions. The types of instruments may include swaps, caps, floors, forwards, futures and options to achieve one of four Company-approved objectives:
•
to hedge risk arising from interest rate, equity market, commodity market, credit spread and issuer default, price or currency exchange rate risk or volatility;
•
to manage liquidity;
•
to control transaction costs;
•
to enter into synthetic replication transactions.
Interest rate and credit default swaps involve the periodic exchange of cash flows with other parties, at specified intervals, calculated using agreed upon rates or other financial variables and notional principal amounts. Generally, little to no cash or principal payments are exchanged at the inception of the contract. Typically, at the time a swap is entered into, the cash flow streams exchanged by the counterparties are equal in value.
Interest rate cap and floor contracts entitle the purchaser to receive from the issuer at specified dates, the amount, if any, by which a specified market rate exceeds the cap strike interest rate or falls below the floor strike interest rate, applied to a notional principal amount. A premium payment determined at inception is made by the purchaser of the contract and no principal payments are exchanged.
Forward contracts are customized commitments that specify a rate of interest or currency exchange rate to be paid or received on an obligation beginning on a future start date and are typically settled in cash.
Financial futures are standardized commitments to either purchase or sell designated financial instruments, at a future date, for a specified price and may be settled in cash or through delivery of the underlying instrument. Futures contracts trade on organized exchanges. Margin requirements for futures are met by pledging securities or cash, and changes in the futures’ contract values are settled daily in cash.
Option contracts grant the purchaser, for a premium payment, the right to either purchase from or sell to the issuer a financial instrument at a specified price, within a specified period or on a stated date. The contracts may reference commodities, which grant the purchaser the right to either purchase from or sell to the issuer commodities at a specified price, within a specified period or on a stated date. Option contracts are typically settled in cash.

F- 10

HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
1. Basis of Presentation and Significant Accounting Policies (continued)


Foreign currency swaps exchange an initial principal amount in two currencies, agreeing to re-exchange the currencies at a future date, at an agreed upon exchange rate. There may also be a periodic exchange of payments at specified intervals calculated using the agreed upon rates and exchanged principal amounts.
The Company’s derivative transactions conducted in insurance company subsidiaries are used in strategies permitted under the derivative use plans required by the State of Connecticut and the State of New York insurance departments.
Accounting and Financial Statement Presentation of Derivative Instruments and Hedging Activities
Derivative instruments are recognized on the Consolidated Balance Sheets at fair value and are reported in Other Investments and Other Liabilities. For balance sheet presentation purposes, the Company has elected to offset the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty or under a master netting agreement, which provides the Company with the legal right of offset.
The Company clears certain interest rate swap and credit default swap derivative transactions through central clearing houses. OTC-cleared derivatives require initial collateral at the inception of the trade in the form of cash or highly liquid securities, such as U.S. Treasuries and government agency investments. Central clearing houses also require additional cash as variation margin based on daily market value movements. For information on collateral, see the derivative collateral arrangements section in Note 4 - Derivative Instruments of Notes to Consolidated Financial Statements. In addition, OTC-cleared transactions include price alignment amounts either received or paid on the variation margin, which are reflected in realized capital gains and losses or, if characterized as interest, in net investment income.
On the date the derivative contract is entered into, the Company designates the derivative as (1) a hedge of the fair value of a recognized asset or liability (“fair value” hedge), (2) a hedge of the variability in cash flows of a forecasted transaction or of amounts to be received or paid related to a recognized asset or liability (“cash flow” hedge), (3) a hedge of a net investment in a foreign operation (“net investment” hedge) or (4) held for other investment and/or risk management purposes, which primarily involve managing asset or liability related risks and do not qualify for hedge accounting.
Fair Value Hedges - Changes in the fair value of a derivative that is designated and qualifies as a fair value hedge, along with the changes in the fair value of the hedged asset or liability that is attributable to the hedged risk, are recorded in current period earnings as net realized capital gains and losses with any differences between the net change in fair value of the derivative and the hedged item representing the hedge ineffectiveness. Periodic cash flows and accruals of income/expense ("periodic derivative net coupon settlements") are recorded in the line item of the Consolidated Statements of Operations in which the cash flows of the hedged item are recorded.
Cash Flow Hedges - Changes in the fair value of a derivative that is designated and qualifies as a cash flow hedge, including foreign-currency cash flow hedges, are recorded in AOCI and are reclassified into earnings when the variability of the cash flow of the hedged item impacts earnings. Gains and losses on derivative contracts that are reclassified from AOCI to current period earnings are included in the line item in the Consolidated Statements of Operations in which the cash flows of the hedged item are recorded. Any hedge ineffectiveness is recorded immediately in current period earnings as net realized capital gains and losses. Periodic derivative net coupon settlements are recorded in the line item of the Consolidated Statements of Operations in which the cash flows of the hedged item are recorded. Cash flows from cash flow hedges are presented in the same category as the cash flows from the items being hedged in the Consolidated Statement of Cash Flows.
Other Investment and/or Risk Management Activities - The Company’s other investment and/or risk management activities primarily relate to strategies used to reduce economic risk or replicate permitted investments and do not receive hedge accounting treatment. Changes in the fair value, including periodic derivative net coupon settlements, of derivative instruments held for other investment and/or risk management purposes are reported in current period earnings as net realized capital gains and losses.

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HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
1. Basis of Presentation and Significant Accounting Policies (continued)


Hedge Documentation and Effectiveness Testing
To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated changes in fair value or cash flow of the hedged item. At hedge inception, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking each hedge transaction. The documentation process includes linking derivatives that are designated as fair value, cash flow, or net investment hedges to specific assets or liabilities on the balance sheet or to specific forecasted transactions and defining the effectiveness and ineffectiveness testing methods to be used. The Company also formally assesses both at the hedge’s inception and ongoing on a quarterly basis, whether the derivatives that are used in hedging transactions have been and are expected to continue to be highly effective in offsetting changes in fair values, cash flows or net investment in foreign operations of hedged items. Hedge effectiveness is assessed primarily using quantitative methods as well as using qualitative methods. Quantitative methods include regression or other statistical analysis of changes in fair value or cash flows associated with the hedge relationship. Qualitative methods may include comparison of critical terms of the derivative to the hedged item. Hedge ineffectiveness of the hedge relationships are measured each reporting period using the “Change in Variable Cash Flows Method”, the “Change in Fair Value Method”, the “Hypothetical Derivative Method”, or the “Dollar Offset Method”.
Discontinuance of Hedge Accounting
The Company discontinues hedge accounting prospectively when (1) it is determined that the qualifying criteria are no longer met; (2) the derivative is no longer designated as a hedging instrument; or (3) the derivative expires or is sold, terminated or exercised.
When hedge accounting is discontinued because it is determined that the derivative no longer qualifies as an effective fair value hedge, the derivative continues to be carried at fair value on the balance sheet with changes in its fair value recognized in current period earnings. Changes in the fair value of the hedged item attributable to the hedged risk is no longer adjusted through current period earnings and the existing basis adjustment is amortized to earnings over the remaining life of the hedged item through the applicable earnings component associated with the hedged item.
When cash flow hedge accounting is discontinued because the Company becomes aware that it is not probable that the forecasted transaction will occur, the derivative continues to be carried on the balance sheet at its fair value, and gains and losses that were accumulated in AOCI are recognized immediately in earnings.
In other situations in which hedge accounting is discontinued, including those where the derivative is sold, terminated or exercised, amounts previously deferred in AOCI are reclassified into earnings when earnings are impacted by the hedged item.
Embedded Derivatives
The Company purchases investments and has previously issued financial products that contain embedded derivative instruments. When it is determined that (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes. The embedded derivative, which is reported with the host instrument in the Consolidated Balance Sheets, is carried at fair value with changes in fair value reported in net realized capital gains and losses.
Credit Risk
Credit risk is defined as the risk of financial loss due to uncertainty of an obligor’s or counterparty’s ability or willingness to meet its obligations in accordance with agreed upon terms. Credit exposures are measured using the market value of the derivatives, resulting in amounts owed to the Company by its counterparties or potential payment obligations from the Company to its counterparties. The Company generally requires that OTC derivative contracts, other than certain forward contracts, be governed by International Swaps and Derivatives Association ("ISDA") agreements which are structured by legal entity and by counterparty, and permit right of offset. Some agreements require daily collateral settlement based upon agreed upon thresholds. For purposes of daily derivative collateral maintenance, credit exposures are generally quantified based on the prior business day’s market value and collateral is pledged to and held by, or on behalf of, the Company to the extent the current value of the derivatives exceed the contractual thresholds. For the Company’s domestic derivative programs, the maximum uncollateralized threshold for a derivative counterparty for a single legal entity is $10. The Company also minimizes the credit risk of derivative instruments by entering into transactions with high quality counterparties primarily rated A or better, which are monitored and evaluated by the Company’s risk management team and reviewed by senior management. OTC-cleared derivatives are governed by clearing house rules. Transactions cleared through a central clearing house reduce risk due to their ability to require daily variation margin and act as an independent valuation source. In addition, the Company monitors counterparty credit exposure on a monthly basis to ensure compliance with Company policies and statutory limitations.
Cash
Cash represents cash on hand and demand deposits with banks or other financial institutions.

F- 12

HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
1. Basis of Presentation and Significant Accounting Policies (continued)


Reinsurance
The Company cedes insurance to affiliated and unaffiliated insurers in order to limit its maximum losses and to diversify its exposures and provide statutory surplus relief. Such arrangements do not relieve the Company of its primary liability to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company also assumes reinsurance from other insurers.
Reinsurance accounting is followed for ceded and assumed transactions that provide indemnification against loss or liability relating to insurance risk (i.e., risk transfer). To meet risk transfer requirements, a reinsurance agreement must include insurance risk, consisting of underwriting, investment, and timing risk, and a reasonable possibility of a significant loss to the reinsurer. If the ceded and assumed transactions do not meet risk transfer requirements, the Company accounts for these transactions as financing transactions.
Premiums, benefits, losses and loss adjustment expenses reflect the net effects of ceded and assumed reinsurance transactions. Included in other assets are prepaid reinsurance premiums, which represent the portion of premiums ceded to reinsurers applicable to the unexpired terms of the reinsurance agreements. Included in reinsurance recoverables are balances due from reinsurance companies for paid and unpaid losses and loss adjustment expenses and are presented net of any necessary allowance for uncollectible reinsurance.
The Company reinsures certain of its risks to other reinsurers under yearly renewable term, coinsurance, and modified coinsurance arrangements, and variations thereof. 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.
The Company evaluates the financial condition of its reinsurers and concentrations of credit risk. Reinsurance is placed with reinsurers that meet strict financial criteria established by the Company.
Deferred Policy Acquisition Costs
Deferred policy acquisition costs ("DAC") represent costs that are directly related to the acquisition of new and renewal insurance contracts and incremental direct costs of contract acquisition that are incurred in transactions with either independent third parties or employees. Such costs primarily include commissions, premium taxes, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully issued contracts.
For universal life-type contracts (including variable annuities), the DAC asset is amortized over the estimated life of the contracts acquired in proportion to the present value of estimated gross profits ("EGPs"). The Company also uses the present value EGPs to determine reserves for universal life type contracts (including variable annuities) with death or other insurance benefits such as guaranteed minimum death, life-contingent guaranteed minimum withdrawal and universal life insurance secondary guarantee benefits. These benefits are accounted for and collectively referred to as death and other insurance benefit reserves and are held in addition to the account value liability representing policyholder funds.
For most life insurance product contracts, including variable annuities, the Company estimates gross profits over 20 years as EGPs emerging subsequent to that time frame are immaterial. Contracts sold in a particular year are aggregated into cohorts. Future gross profits for each cohort are projected over the estimated lives of the underlying contracts, based on future account value projections for variable annuity products. The projection of future account values requires the use of certain assumptions including: separate account returns; separate account fund mix; fees assessed against the contract holder’s account balance; full and partial surrender rates; interest credited; mortality; and the extent and duration of hedging activities and hedging costs.
The Company determines EGPs from a single deterministic reversion to mean ("RTM") separate account return projection which is an estimation technique commonly used by insurance entities to project future separate account returns. Through this estimation technique, the Company’s DAC model is adjusted to reflect actual fund performance at the end of each quarter. Through a consideration of recent market returns, the Company will unlock ("Unlock"), or adjust, projected returns over a future period so that the account value returns to the long-term expected rate of return, providing that those projected returns do not exceed certain caps. This Unlock for future separate account returns is determined each quarter.
In the fourth quarter of 2017, the Company completed a comprehensive policyholder behavior assumption study which resulted in a non-market related after-tax charge and incorporated the results of that study into its projection of future gross profits. Additionally, throughout the year, the Company evaluates various aspects of policyholder behavior and will revise its policyholder assumptions if credible emerging data indicates that changes are warranted. The Company will continue to evaluate its assumptions related to policyholder behavior as initiatives to reduce the size of the variable annuity business are implemented by management. Upon completion of an annual assumption study or evaluation of credible new information, the Company will revise its assumptions to reflect its current best estimate. These assumption revisions will change the projected account values and the related EGPs in the DAC models, as well as, EGPs used in the death and other insurance benefit reserving models.

F- 13

HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
1. Basis of Presentation and Significant Accounting Policies (continued)


All assumption changes that affect the estimate of future EGPs including the update of current account values, the use of the RTM estimation technique, and policyholder behavior assumptions are considered an Unlock in the period of revision. An Unlock adjusts the DAC and death and other insurance benefit reserve balances in the Consolidated Balance Sheets with an offsetting benefit or charge in the Consolidated Statements of Operations in the period of the revision. An Unlock revises EGPs to reflect the Company's current best estimate assumptions. The Company also tests the aggregate recoverability of DAC by comparing the existing DAC balance to the present value of future EGPs. An Unlock that results in an after-tax benefit generally occurs as a result of actual experience or future expectations of product profitability being favorable compared to previous estimates. An Unlock that results in an after-tax charge generally occurs as a result of actual experience or future expectations of product profitability being unfavorable compared to previous estimates.
Policyholders may exchange contracts or make modifications to existing contracts.  If the new contract or the modification results in a substantially changed replacement contract, the existing DAC is written off through income.  If the new or modified contract is not substantially changed, the existing DAC continues to be amortized and incremental costs are expensed in the period incurred.
Reserve for Future Policy Benefits
Reserve for Future Policy Benefits on Universal Life-type Contracts
Certain contracts classified as universal life-type include death and other insurance benefit features including guaranteed minimum death benefit ("GMDB") and the life-contingent portion of guaranteed minimum withdrawal benefit ("GMWB") riders offered with variable annuity contracts, as well as secondary guarantee benefits offered with universal life insurance contracts. Universal life insurance secondary guarantee benefits ensure that the policy will not terminate, and will continue to provide a death benefit, even if there is insufficient policy value to cover the monthly deductions and charges. GMDB riders on variable annuities provide a death benefit during the accumulation phase that is generally equal to the greater of (a) the contract value at death or (b) premium payments less any prior withdrawals and may include adjustments that increase the benefit, such as for maximum anniversary value ("MAV"). For the Company's products with GMWB riders, the withdrawal benefit can exceed the guaranteed remaining balance ("GRB"), which is generally equal to premiums less withdrawals. In addition to recording an account value liability that represents policyholder funds, the Company records a death and other insurance benefit liability for GMDBs, the life-contingent portion of GMWBs and the universal life insurance secondary guarantees. This death and other insurance benefit liability is reported in reserve for future policy benefits in the Company’s Consolidated Balance Sheets. Changes in the death and other insurance benefit reserves are recorded in benefits, losses and loss adjustment expenses in the Company’s Consolidated Statements of Operations.
The death and other insurance benefit liability is determined by estimating the expected present value of the benefits in excess of the policyholder’s expected account value in proportion to the present value of total expected assessments and investment margin. Total expected assessments are the aggregate of all contract charges, including those for administration, mortality, expense, and surrender. The liability is accrued as actual assessments are earned. The expected present value of benefits and assessments are generally derived from a set of stochastic scenarios that have been calibrated to our RTM separate account returns and assumptions including market rates of return, volatility, discount rates, lapse rates and mortality experience. Consistent with the Company’s policy on the Unlock, the Company regularly evaluates estimates used and adjusts the liability, with a related charge or credit to benefits, losses and loss adjustment expenses. For further information on the Unlock, see the Deferred Policy Acquisition Costs accounting policy section within this footnote.
The Company reinsures a portion of its in-force GMDB and all of its universal life insurance secondary guarantees. Net reinsurance costs are recognized ratably over the accumulation period based on total expected assessments.

Reserve for Future Policy Benefits on Traditional Annuity and Other Contracts
Traditional annuities recorded within the reserve for future policy benefits primarily include life-contingent contracts in the payout phase such as structured settlements and terminal funding agreements. Other contracts within the reserve for policyholder benefits include whole life and guaranteed term life insurance contracts. The reserve for future policy benefits is calculated using standard actuarial methods considering the present value of future benefits and related expenses to be paid less the present value of the portion of future premiums required using assumptions “locked in” at the time the policies were issued, including discount rate, withdrawal, mortality and expense assumptions deemed appropriate at the issue date. Future policy benefits are computed at amounts that, with additions from any estimated premiums to be received and with interest on such reserves compounded annually at assumed rates, are expected to be sufficient to meet the Company’s policy obligations at their maturities or in the event of an insured’s death. While assumptions are locked in upon issuance of new contracts and annuitizations of existing contracts, significant changes in experience or assumptions may require the Company to establish premium deficiency reserves. Premium deficiency reserves, if any, are established based on current assumptions without considering a provision for adverse deviation. Changes in or deviations from the assumptions used can significantly affect the Company’s reserve levels and results from operations.

F- 14

HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
1. Basis of Presentation and Significant Accounting Policies (continued)


Other Policyholder Funds and Benefits Payable
Other policyholder funds and benefits payable primarily include the non-variable account values associated with variable annuity and other universal life-type contracts, investment contracts, the non-life contingent portion of GMWBs that are accounted for as embedded derivatives at fair value as well as other policyholder account balances associated with our life insurance businesses. Investment contracts are non-life contingent and include institutional and governmental deposits, structured settlements and fixed annuities. The liability for investment contracts is equal to the balance that accrues to the benefit of the contract holder as of the financial statement date, which includes the accumulation of deposits plus credited interest, less withdrawals, payments and assessments through the financial statement date. For discussion of fair value of GMWBs that represent embedded derivatives, see Note 2 - Fair Value Measurements of Notes to Consolidated Financial Statements.
Separate Account Liabilities
The Company records the variable account value portion of variable annuities, variable life insurance products and institutional and governmental investment contracts within separate accounts. Separate account assets are reported at fair value and separate account liabilities are reported at amounts consistent with separate account assets. Investment income and gains and losses from those separate account assets accrue directly to the policyholder, who assumes the related investment risk, and are offset by change in the related liability. Changes in the value of separate account assets and separate account liabilities are reported in the same line item in the Consolidated Statements of Operations. The Company earns fee income for investment management, certain administrative services and mortality and expense risks.

F- 15

HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2. Fair Value Measurements


The Company carries certain financial assets and liabilities at estimated fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. Our fair value framework includes a hierarchy that gives the highest priority to the use of quoted prices in active markets, followed by the use of market observable inputs, followed by the use of unobservable inputs. The fair value hierarchy levels are as follows:
Level 1
Fair values based primarily on unadjusted quoted prices for identical assets, or liabilities, in active markets that the Company has the ability to access at the measurement date.
Level 2
Fair values primarily based on observable inputs, other than quoted prices included in Level 1, or based on prices for similar assets and liabilities.
Level 3
Fair values derived when one or more of the significant inputs are unobservable (including assumptions about risk). With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. Also included are securities that are traded within illiquid markets and/or priced by independent brokers.
The Company will classify the financial asset or liability by level based upon the lowest level input that is significant to the determination of the fair value. In most cases, both observable inputs (e.g., changes in interest rates) and unobservable inputs (e.g., changes in risk assumptions) are used to determine fair values that the Company has classified within Level 3.


F- 16
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2. Fair Value Measurements (continued)

Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2017
 
Total
Quoted Prices in Active Markets for Identical Assets (Level 1)
Significant Observable Inputs (Level 2)
Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
 
 
 
 
Fixed maturities, AFS
 
 
 
 
Asset backed securities ("ABS")
$
819

$
—

$
806

$
13

Collateralized debt obligations ("CDOs")
888

—

815

73

Commercial mortgage-backed securities ("CMBS")
2,084

—

2,058

26

Corporate
14,038

—

13,595

443

Foreign government/government agencies
407

—

406

1

Municipal
1,266

—

1,228

38

Residential mortgage-backed securities ("RMBS")
1,427

—

735

692

U.S. Treasuries
1,870

284

1,586

—

Total fixed maturities
22,799

284

21,229

1,286

Fixed maturities, FVO
32

—

32

—

Equity securities, trading [1]
12

12

—

—

Equity securities, AFS
154

61

47

46

Derivative assets
 
 
 
 
Credit derivatives
1

—

1

—

Foreign exchange derivatives
(1
)
—

(1
)
—

Interest rate derivatives
47

—

47

—

GMWB hedging instruments
69

—

35

34

Macro hedge program
19

—

—

19

Total derivative assets [2]
135

—

82

53

Short-term investments
1,094

807

287

—

Reinsurance recoverable for GMWB
36

—

—

36

Modified coinsurance reinsurance contracts
55

—

55

—

Separate account assets [3]
113,302

73,538

38,677

185

Total assets accounted for at fair value on a recurring basis
$
137,619

$
74,702

$
60,409

$
1,606

Liabilities accounted for at fair value on a recurring basis
 
 
 
 
Other policyholder funds and benefits payable
 
 
 
 
GMWB embedded derivative
$
(75
)
$
—

$
—

$
(75
)
Total other policyholder funds and benefits payable
(75
)
—

—

(75
)
Derivative liabilities
 
 
 
 
Foreign exchange derivatives
(187
)
—

(187
)
—

Interest rate derivatives
(403
)
—

(374
)
(29
)
GMWB hedging instruments
(2
)
—

(2
)
—

Macro hedge program
4

—

—

4

Total derivative liabilities [4]
(588
)
—

(563
)
(25
)
Total liabilities accounted for at fair value on a recurring basis
$
(663
)
$
—

$
(563
)
$
(100
)

F- 17
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2. Fair Value Measurements (continued)

Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2016
 
Total
Quoted Prices in Active Markets for Identical Assets (Level 1)
Significant Observable Inputs (Level 2)
Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
 
 
 
 
Fixed maturities, AFS
 
 
 
 
ABS
$
993

$
—

$
956

$
37

CDOs
940

—

680

260

CMBS
2,146

—

2,125

21

Corporate
14,693

—

14,127

566

Foreign government/government agencies
345

—

328

17

Municipal
1,189

—

1,117

72

RMBS
1,760

—

1,049

711

U.S. Treasuries
1,753

230

1,523

—

Total fixed maturities
23,819

230

21,905

1,684

Fixed maturities, FVO
82

—

82

—

Equity securities, trading [1]
11

11

—

—

Equity securities, AFS
152

20

88

44

Derivative assets
 
 
 
 
Credit derivatives
(1
)
—

(1
)
—

Foreign exchange derivatives
4

—

4

—

Interest rate derivatives
30

—

30

—

GMWB hedging instruments
74

—

14

60

Macro hedge program
128

—

8

120

Total derivative assets [2]
235

—

55

180

Short-term investments
1,349

637

712

—

Reinsurance recoverable for GMWB
73

—

—

73

Modified coinsurance reinsurance contracts
68

—

68

—

Separate account assets [3]
111,634

71,606

38,856

201

Total assets accounted for at fair value on a recurring basis
$
137,423

$
72,504

$
61,766

$
2,182

Liabilities accounted for at fair value on a recurring basis
 
 
 
 
Other policyholder funds and benefits payable
 
 
 
 
GMWB embedded derivative
$
(241
)
$
—

$
—

$
(241
)
Equity linked notes
(33
)
—

—

(33
)
Total other policyholder funds and benefits payable
(274
)
—

—

(274
)
Derivative liabilities
 
 
 
 
Credit derivatives
1

—

1

—

Equity derivatives
33

—

33

—

Foreign exchange derivatives
(247
)
—

(247
)
—

Interest rate derivatives
(434
)
—

(404
)
(30
)
GMWB hedging instruments
20

—

(1
)
21

Macro hedge program
50

—

3

47

Total derivative liabilities [4]
(577
)
—

(615
)
38

Total liabilities accounted for at fair value on a recurring basis
$
(851
)
$
—

$
(615
)
$
(236
)
[1]
Included in other investments on the Consolidated Balance Sheets.
[2]
Includes OTC and OTC-cleared derivative instruments in a net positive fair value position after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements, clearing house rules, and applicable law. See footnote 4 to this table for derivative liabilities.
[3]
Approximately $2.5 billion and $4.0 billion of investment sales receivable, as of December 31, 2017 and December 31, 2016, respectively, are excluded from this disclosure requirement because they are trade receivables in the ordinary course of business where the carrying amount approximates fair value. Included in the total fair value amount are $0.9 billion and $1.0 billion of investments, as of December 31, 2017 and December 31, 2016, respectively, for which the fair value is estimated using the net asset value per unit as a practical expedient which are excluded from the disclosure requirement to classify amounts in the fair value hierarchy.
[4]
Includes OTC and OTC-cleared derivative instruments in a net negative fair value position (derivative liability) after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements, clearing house rules and applicable law.

F- 18
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2. Fair Value Measurements (continued)

Fixed Maturities, Equity Securities, Short-term Investments, and Free-standing Derivatives
Valuation Techniques
The Company generally determines fair values using valuation techniques that use prices, rates, and other relevant information evident from market transactions involving identical or similar instruments. Valuation techniques also include, where appropriate, estimates of future cash flows that are converted into a single discounted amount using current market expectations. The Company uses a "waterfall" approach comprised of the following pricing sources and techniques, which are listed in priority order:
•
Quoted prices, unadjusted, for identical assets or liabilities in active markets, which are classified as Level 1.
•
Prices from third-party pricing services, which primarily utilize a combination of techniques. These services utilize recently reported trades of identical, similar, or benchmark securities making adjustments for market observable inputs available through the reporting date. If there are no recently reported trades, they may use a discounted cash flow technique to develop a price using expected cash flows based upon the anticipated future performance of the underlying collateral discounted at an estimated market rate. Both techniques develop prices that consider the time value of future cash flows and provide a margin for risk, including liquidity and credit risk. Most prices provided by third-party pricing services are classified as Level 2 because the inputs used in pricing the securities are observable. However, some securities that are less liquid or trade less actively are classified as Level 3. Additionally, certain long-dated securities, including certain municipal securities, foreign government/government agency securities, and bank loans, include benchmark interest rate or credit spread assumptions that are not observable in the marketplace and are thus classified as Level 3.
•
Internal matrix pricing, which is a valuation process internally developed for private placement securities for which the Company is unable to obtain a price from a third-party pricing service. Internal pricing matrices determine credit spreads that, when combined with risk-free rates, are applied to contractual cash flows to develop a price. The Company develops credit spreads using market based data for public securities adjusted for credit spread differentials between public and private securities, which are obtained from a survey of multiple private placement brokers. The market-based reference credit spread considers the issuer’s financial strength and term to maturity, using an independent public security index and trade information, while the credit spread differential considers the non-public nature of the security. Securities priced using internal matrix pricing are classified as Level 2 because the inputs are observable or can be corroborated with observable data.
•
Independent broker quotes, which are typically non-binding and use inputs that can be difficult to corroborate with observable market based data. Brokers may use present value techniques using assumptions specific to the security types, or they may use recent transactions of similar securities. Due to the lack of transparency in the process that brokers use to develop prices, valuations that are based on independent broker quotes are classified as Level 3.
The fair value of free-standing derivative instruments are determined primarily using a discounted cash flow model or option model technique and incorporate counterparty credit risk. In some cases, quoted market prices for exchange-traded and OTC-cleared derivatives may be used and in other cases independent broker quotes may be used. The pricing valuation models primarily use inputs that are observable in the market or can be corroborated by observable market data. The valuation of certain derivatives may include significant inputs that are unobservable, such as volatility levels, and reflect the Company’s view of what other market participants would use when pricing such instruments. Unobservable market data is used in the valuation of customized derivatives that are used to hedge certain GMWB variable annuity riders. See the section “GMWB Embedded, Customized, and Reinsurance Derivatives” below for further discussion of the valuation model used to value these customized derivatives.
Valuation Controls
The fair value process for investments is monitored by the Valuation Committee, which is a cross-functional group of senior management within the Company that meets at least quarterly. The purpose of the committee is to oversee the pricing policy and procedures, as well as to approve changes to valuation methodologies and pricing sources. Controls and procedures used to assess third-party pricing services are reviewed by the Valuation Committee, including the results of annual due-diligence reviews.
There are also two working groups under the Valuation Committee: a Securities Fair Value Working Group (“Securities Working Group”) and a Derivatives Fair Value Working Group ("Derivatives Working Group"). The working groups, which include various investment, operations, accounting and risk management professionals, meet monthly to review market data trends, pricing and trading statistics and results, and any proposed pricing methodology changes.

F- 19
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2. Fair Value Measurements (continued)

The Securities Working Group reviews prices received from third parties to ensure that the prices represent a reasonable estimate of the fair value. The group considers trading volume, new issuance activity, market trends, new regulatory rulings and other factors to determine whether the market activity is significantly different than normal activity in an active market. A dedicated pricing unit follows up with trading and investment sector professionals and challenges prices of third-party pricing services when the estimated assumptions used differ from what the unit believes a market participant would use. If the available evidence indicates that pricing from third-party pricing services or broker quotes is based upon transactions that are stale or not from trades made in an orderly market, the Company places little, if any, weight on the third party service’s transaction price and will estimate fair value using an internal process, such as a pricing matrix.
The Derivatives Working Group reviews the inputs, assumptions and methodologies used to ensure that the prices represent a reasonable estimate of the fair value. A dedicated pricing team works directly with investment sector professionals to investigate the impacts of changes in the market environment on prices or valuations of derivatives. New models and any changes to current models are required to have detailed documentation and are validated to a second source. The model validation documentation and results of validation are presented to the Valuation Committee for approval.
The Company conducts other monitoring controls around securities and derivatives pricing including, but not limited to, the following:
•
Review of daily price changes over specific thresholds and new trade comparison to third-party pricing services.
•
Daily comparison of OTC derivative market valuations to counterparty valuations.
•
Review of weekly price changes compared to published bond prices of a corporate bond index.
•
Monthly reviews of price changes over thresholds, stale prices, missing prices, and zero prices.
•
Monthly validation of prices to a second source for securities in most sectors and for certain derivatives.
In addition, The Hartford’s enterprise-wide Operational Risk Management function, led by the Chief Risk Officer, is responsible for model risk management and provides an independent review of the suitability and reliability of model inputs, as well as an analysis of significant changes to current models.
Valuation Inputs
Quoted prices for identical assets in active markets are considered Level 1 and consist of on-the-run U.S. Treasuries, money market funds, exchange-traded equity securities, open-ended mutual funds, short-term investments, and exchange traded futures and option contracts.

F- 20
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2. Fair Value Measurements (continued)

Valuation Inputs Used in Level 2 and 3 Measurements for Securities and Freestanding Derivatives
 
Level 2
Primary Observable Inputs
Level 3
Primary Unobservable Inputs
Fixed Maturity Investments
   Structured securities (includes ABS, CDOs CMBS and RMBS)
 
• Benchmark yields and spreads
• Monthly payment information
• Collateral performance, which varies by vintage year and includes delinquency rates, loss severity rates and refinancing assumptions
• Credit default swap indices

Other inputs for ABS and RMBS:
• Estimate of future principal prepayments, derived based on the characteristics of the underlying structure
• Prepayment speeds previously experienced at the interest rate levels projected for the collateral
• Independent broker quotes
• Credit spreads beyond observable curve
• Interest rates beyond observable curve

Other inputs for less liquid securities or those that trade less actively, including subprime RMBS:
• Estimated cash flows
• Credit spreads, which include illiquidity premium
• Constant prepayment rates
• Constant default rates
• Loss severity
   Corporates
 
• Benchmark yields and spreads
• Reported trades, bids, offers of the same or similar securities
• Issuer spreads and credit default swap curves

Other inputs for investment grade privately placed securities that utilize internal matrix pricing :
• Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature
• Independent broker quotes
• Credit spreads beyond observable curve
• Interest rates beyond observable curve

Other inputs for below investment grade privately placed securities:
• Independent broker quotes
• Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature
   U.S Treasuries, Municipals, and Foreign government/government agencies
 
• Benchmark yields and spreads
• Issuer credit default swap curves
• Political events in emerging market economies
• Municipal Securities Rulemaking Board reported trades and material event notices
• Issuer financial statements
• Independent broker quotes
• Credit spreads beyond observable curve
• Interest rates beyond observable curve
Equity Securities
 
• Quoted prices in markets that are not active
• For privately traded equity securities, internal discounted cash flow models utilizing earnings multiples or other cash flow assumptions that are not observable
Short Term Investments
 
• Benchmark yields and spreads
• Reported trades, bids, offers
• Issuer spreads and credit default swap curves
• Material event notices and new issue money market rates
Not applicable
Derivatives
   Credit derivatives
 
• Swap yield curve
• Credit default swap curves
Not applicable
   Equity derivatives
 
• Equity index levels
• Swap yield curve
• Independent broker quotes
• Equity volatility
   Foreign exchange derivatives
 
• Swap yield curve
• Currency spot and forward rates
• Cross currency basis curves
Not applicable
   Interest rate derivatives
 
• Swap yield curve
• Independent broker quotes
• Interest rate volatility

F- 21
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2. Fair Value Measurements (continued)

Significant Unobservable Inputs for Level 3 - Securities
Assets accounted for at fair value on a recurring basis
Fair Value
Predominant
Valuation
Technique
Significant Unobservable Input
Minimum
Maximum
Weighted Average [1]
Impact of Increase in Input on Fair Value [2]
As of December 31, 2017
CMBS [3]
$
15

Discounted cash flows
Spread (encompasses
prepayment, default risk and loss severity)
9bps
1,816bps
457bps
Decrease
Corporate [4]
190

Discounted cash flows
Spread
103bps
1,000bps
355bps
Decrease
Municipal [3]
22

Discounted cash flows
Spread
192bps
250bps
228bps
Decrease
RMBS [3]
692

Discounted cash flows
Spread
24bps
463bps
77bps
Decrease
 
 
 
Constant prepayment rate
—
%
25
%
6
%
Decrease [5]
 
 
 
Constant default rate
—
%
7
%
4
%
Decrease
 
 
 
Loss severity
—
%
100
%
65
%
Decrease
As of December 31, 2016
CMBS [3]
$
9

Discounted cash flows
Spread (encompasses
prepayment, default risk and loss severity)
10bps
1,273bps
249bps
Decrease
Corporate [4]
265

Discounted cash flows
Spread
122bps
1,021bps
373bps
Decrease
Municipal [3]
56

Discounted cash flows
Spread
135bps
286bps
195bps
Decrease
RMBS [3]
704

Discounted cash flows
Spread
16bps
1,830bps
189bps
Decrease
 
 
 
Constant prepayment rate
—
%
20
%
4
%
Decrease [5]
 
 
 
Constant default rate
1
%
10
%
5
%
Decrease
 
 
 
Loss severity
—
%
100
%
75
%
Decrease
[1]
The weighted average is determined based on the fair value of the securities.
[2]
Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table.
[3]
Excludes securities for which the Company based fair value on broker quotations.
[4]
Excludes securities for which the Company bases fair value on broker quotations; however, included are broker-priced lower-rated private placement securities for which the Company receives spread and yield information to corroborate the fair value.
[5]
Decrease for above market rate coupons and increase for below market rate coupons. 

F- 22
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2. Fair Value Measurements (continued)

Significant Unobservable Inputs for Level 3 - Freestanding Derivatives
 
Fair Value
Predominant Valuation Technique
Significant Unobservable Input
Minimum
Maximum
Impact of Increase in Input on Fair Value [1]
As of December 31, 2017
Interest rate derivatives
 
 
 
 
 
 
Interest rate swaps
$
(29
)
Discounted  cash flows
Swap curve 
beyond 30 years
2%
3%
Decrease
GMWB hedging instruments
 
 
 
 
 
 
Equity variance swaps
(26
)
Option model
Equity volatility
19%
19%
Increase
Equity options
1

Option model
Equity volatility
27%
30%
Increase
Customized swaps
59

Discounted  cash flows
Equity volatility
7%
30%
Increase
Macro hedge program
 
 
 
 
 
 
Equity options [2]
29

Option model
Equity volatility
18%
31%
Increase
As of December 31, 2016
Interest rate derivatives
 
 
 
 
 
 
Interest rate swaps
$
(29
)
Discounted  cash flows
Swap curve 
beyond 30 years
3%
3%
Decrease
GMWB hedging instruments
 
 
 
 
 
 
Equity variance swaps
(36
)
Option model
Equity volatility
20%
23%
Increase
Equity options
17

Option model
Equity volatility
27%
30%
Increase
Customized swaps
100

Discounted  cash flows
Equity volatility
12%
30%
Increase
Macro hedge program
 
 
 
 
 
 
Equity options
188

Option model
Equity volatility
17%
28%
Increase
[1]
Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions.
[2]
Excludes derivatives for which the Company bases fair value on broker quotations.
The tables above exclude the portion of ABS, index options and certain corporate securities for which fair values are predominately based on independent broker quotes. While the Company does not have access to the significant unobservable inputs that independent brokers may use in their pricing process, the Company believes brokers likely use inputs similar to those used by the Company and third-party pricing services to price similar instruments. As such, in their pricing models, brokers likely use estimated loss severity rates, prepayment rates, constant default rates and credit spreads. Therefore, similar to non-broker priced securities, increases in these inputs would generally cause fair values to decrease. For the year ended December 31, 2017, no significant adjustments were made by the Company to broker prices received.
Transfers between Levels
Transfers of securities among the levels occur at the beginning of the reporting period. The amount of transfers from Level 1 to Level 2 was $773 and $563, for the years ended December 31, 2017 and 2016, respectively, which represented previously on-the-run U.S. Treasury securities that are now off-the-run. For the years ended December 31, 2017 and 2016, there were no transfers from Level 2 to Level 1. See the fair value roll-forward tables for the years ended December 31, 2017 and 2016, for the transfers into and out of Level 3.

F- 23
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2. Fair Value Measurements (continued)

GMWB Embedded, Customized and Reinsurance Derivatives
GMWB Embedded Derivatives
The Company formerly offered certain variable annuity products with GMWB riders that provide the policyholder with a GRB which is generally equal to premiums less withdrawals. If the policyholder’s account value is reduced to a specified level through a combination of market declines and withdrawals but the GRB still has value, the Company is obligated to continue to make annuity payments to the policyholder until the GRB is exhausted. When payments of the GRB are not life-contingent, the GMWB represents an embedded derivative carried at fair value reported in other policyholder funds and benefits payable in the Consolidated Balance Sheets with changes in fair value reported in net realized capital gains and losses.
Free-standing Customized Derivatives
The Company holds free-standing customized derivative contracts to provide protection from certain capital markets risks for the remaining term of specified blocks of non-reinsured GMWB riders. These customized derivatives are based on policyholder behavior assumptions specified at the inception of the derivative contracts. The Company retains the risk for differences between assumed and actual policyholder behavior and between the performance of the actively managed funds underlying the separate accounts and their respective indices. These derivatives are reported in the Consolidated Balance Sheets within other investments or other liabilities, as appropriate, after considering the impact of master netting agreements.
GMWB Reinsurance Derivative
The Company has reinsurance arrangements in place to transfer a portion of its risk of loss due to GMWB. These arrangements are recognized as derivatives carried at fair value and reported in reinsurance recoverables in the Consolidated Balance Sheets. Changes in the fair value of the reinsurance agreements are reported in net realized capital gains and losses.
Valuation Techniques
Fair values for GMWB embedded derivatives, free-standing customized derivatives and reinsurance derivatives are classified as Level 3 in the fair value hierarchy and are calculated using internally developed models that utilize significant unobservable inputs because active, observable markets do not exist for these items. In valuing the GMWB embedded derivative, the Company attributes to the derivative a portion of the expected fees to be collected over the expected life of the contract from the contract holder equal to the present value of future GMWB claims. The excess of fees collected from the contract holder in the current period over the portion of fees attributed to the embedded derivative in the current period are associated with the host variable annuity contract and reported in fee income.
Valuation Controls
Oversight of the Company's valuation policies and processes for GMWB embedded, reinsurance, and customized derivatives is performed by a multidisciplinary group comprised of finance, actuarial and risk management professionals. This multidisciplinary group reviews and approves changes and enhancements to the Company's valuation model as well as associated controls.
Valuation Inputs
The fair value for each of the non-life contingent GMWBs, the free-standing customized derivatives and the GMWB reinsurance derivative is calculated as an aggregation of the following components: Best Estimate Claim Payments; Credit Standing Adjustment; and Margins. The Company believes the aggregation of these components results in an amount that a market participant in an active liquid market would require, if such a market existed, to assume the risks associated with the guaranteed minimum benefits and the related reinsurance and customized derivatives. Each component described in the following discussion is unobservable in the marketplace and requires subjectivity by the Company in determining its value.
Best Estimate Claim Payments
The Best Estimate Claim Payments are calculated based on actuarial and capital market assumptions related to projected cash flows, including the present value of benefits and related contract charges, over the lives of the contracts, incorporating unobservable inputs including expectations concerning policyholder behavior. These assumptions are input into a stochastic risk neutral scenario process that is used to determine the valuation and involves numerous estimates and subjective judgments regarding a number of variables.
The Company monitors various aspects of policyholder behavior and may modify certain of its assumptions, including living benefit lapses and withdrawal rates, if credible emerging data indicates that changes are warranted. In addition, the Company will continue to evaluate policyholder behavior assumptions should we implement further initiatives to reduce the size of the variable annuity business. At a minimum, all policyholder behavior assumptions are reviewed and updated at least annually as part of the Company’s annual fourth-quarter comprehensive study to refine its estimate of future gross profits. In addition, the Company recognizes non-market-based updates driven by the relative outperformance (underperformance) of the underlying actively managed funds as compared to their respective indices.

F- 24
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2. Fair Value Measurements (continued)

Credit Standing Adjustment
The credit standing adjustment is an estimate of the additional amount that market participants would require in determining fair value to reflect the risk that GMWB benefit obligations or the GMWB reinsurance recoverables will not be fulfilled. The Company incorporates a blend of observable Company and reinsurer credit default spreads from capital markets, adjusted for market recoverability.
Margins
The behavior risk margin adds a margin that market participants would require, in determining fair value, for the risk that the Company’s assumptions about policyholder behavior could differ from actual experience. The behavior risk margin is calculated by taking the difference between adverse policyholder behavior assumptions and best estimate assumptions.
Valuation Inputs Used in Levels 2 and 3 Measurements for GMWB Embedded, Customized and Reinsurance Derivatives
 
Level 2
Primary Observable Inputs
Level 3
Primary Unobservable Inputs
 
• Risk-free rates as represented by the Eurodollar futures, LIBOR deposits and swap rates to derive forward curve rates
• Correlations of 10 years of observed historical returns across underlying well-known market indices
• Correlations of historical index returns compared to separate account fund returns
• Equity index levels
• Market implied equity volatility assumptions

Assumptions about policyholder behavior, including:
• Withdrawal utilization
• Withdrawal rates
• Lapse rates
• Reset elections
Significant Unobservable Inputs for Level 3 GMWB Embedded Customized and Reinsurance Derivatives
 
Unobservable Inputs (Minimum)
Unobservable Inputs (Maximum)
Impact of Increase in Input
on Fair Value Measurement [1]
As of December 31, 2017
Withdrawal Utilization [2]
15%
100%
Increase
Withdrawal Rates [3]
—%
8%
Increase
Lapse Rates [4]
—%
40%
Decrease
Reset Elections [5]
30%
75%
Increase
Equity Volatility [6]
7%
30%
Increase
As of December 31, 2016
 
Unobservable Inputs (Minimum)
Unobservable Inputs (Maximum)
Impact of Increase in Input
on Fair Value Measurement [1]
Withdrawal Utilization [2]
15%
100%
Increase
Withdrawal Rates [3]
—%
8%
Increase
Lapse Rates [4]
—%
40%
Decrease
Reset Elections [5]
20%
75%
Increase
Equity Volatility [6]
12%
30%
Increase
[1]
Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table.
[2]
Range represents assumed cumulative percentages of policyholders taking withdrawals.
[3]
Range represents assumed cumulative annual amount withdrawn by policyholders.
[4]
Range represents assumed annual percentages of full surrender of the underlying variable annuity contracts across all policy durations for in force business.
[5]
Range represents assumed cumulative percentages of policyholders that would elect to reset their guaranteed benefit base.
[6]
Range represents implied market volatilities for equity indices based on multiple pricing sources.
Separate Account Assets
Separate account assets are primarily invested in mutual funds. Other separate account assets include fixed maturities, limited partnerships, equity securities, short-term investments and derivatives that are valued in the same manner, and using the same pricing sources and inputs, as those investments held by the Company. For limited partnerships in which fair value represents the separate account’s share of the NAV, 51%and 39% were subject to significant liquidation restrictions as of December 31, 2017 and December 31, 2016, respectively. Total limited partnerships that do not allow any form of redemption were 21% and 11%, as of December 31, 2017 and December 31, 2016, respectively. Separate account assets classified as Level 3 primarily include long-dated bank loans, subprime RMBS, and commercial mortgage loans.

F- 25
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2. Fair Value Measurements (continued)

Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs
The Company uses derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instrument may not be classified with the same fair value hierarchy level as the associated asset or liability. Therefore, the realized and unrealized gains and losses on derivatives reported in the Level 3 roll-forward may be offset by realized and unrealized gains and losses of the associated assets and liabilities in other line items of the financial statements.
Fair Value Roll-forwards for Financial Instruments Classified as Level 3 for the Year Ended December 31, 2017
 
 
 
Total realized/unrealized gains (losses)
 
 
 
 
 
 
 
 
Fair value as of January 1, 2017
Included in net income [1] [2] [6]
Included in OCI [3]
Purchases
Settlements
Sales
Transfers into Level 3 [4]
Transfers out of Level 3 [4]
Fair value as of December 31, 2017
Assets
 
 
 
 
 
 
 
 
 
Fixed Maturities, AFS
 
 
 
 
 
 
 
 
 
 
ABS
$
37

$
—

$
—

$
14

$
(6
)
$
—

$
6

$
(38
)
$
13

 
CDOs
260

14

(17
)
147

(107
)
(19
)
—

(205
)
73

 
CMBS
21

—

1

33

(4
)
—

—

(25
)
26

 
Corporate
566

(8
)
23

111

(7
)
(95
)
78

(225
)
443

 
Foreign Govt./Govt. Agencies
17

—

1

3

(2
)
—

—

(18
)
1

 
Municipal
72

—

4

—

(1
)
(5
)
—

(32
)
38

 
RMBS
711

—

19

155

(185
)
—

—

(8
)
692

Total Fixed Maturities, AFS
1,684

6

31

463

(312
)
(119
)
84

(551
)
1,286

Equity Securities, AFS
44

—

(4
)
6

—

—

—

—

46

Freestanding Derivatives
 
 
 
 
 
 
 
 
 
 
Interest rate
(30
)
1

—

—

—

—

—

—

(29
)
 
GMWB hedging instruments
81

(47
)
—

—

—

—

—

—

34

 
Macro hedge program
167

10

—

9

—

(163
)
—

—

23

Total Freestanding Derivatives [5]
218

(36
)
—

9

—

(163
)
—

—

28

Reinsurance Recoverable for GMWB
73

(52
)
—

—

15

—

—

—

36

Separate Accounts
201

3

6

152

(8
)
(53
)
11

(127
)
185

Total Assets
$
2,220

$
(79
)
$
33

$
630

$
(305
)
$
(335
)
$
95

$
(678
)
$
1,581

(Liabilities)
 
 
 
 
 
 
 
 
 
Other Policyholder Funds and Benefits Payable
 
 
 
 
 
 
 
 
 
 
Guaranteed Withdrawal Benefits
(241
)
231

—

—

(65
)
—

—

—

(75
)
 
Equity Linked Notes
(33
)
(4
)
—

—

37

—

—

—

—

Total Other Policyholder Funds and Benefits Payable
(274
)
227

—

—

(28
)
—

—

—

(75
)
Total Liabilities
$
(274
)
$
227

$
—

$
—

$
(28
)
$
—

$
—

$
—

$
(75
)

F- 26
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2. Fair Value Measurements (continued)

Fair Value Roll-forwards for Financial Instruments Classified as Level 3 for the Year Ended December 31, 2016
 
 
 
Total realized/unrealized gains (losses)
 
 
 
 
 
 
 
 
Fair value as of January 1, 2016
Included in net income [1] [2] [6]
Included in OCI [3]
Purchases
Settlements
Sales
Transfers into Level 3 [4]
Transfers out of Level 3 [4]
Fair value as of December 31, 2016
Assets
 
 
 
 
 
 
 
 
 
Fixed Maturities, AFS
 
 
 
 
 
 
 
 
 
 
ABS
$
5

$
—

$
—

$
35

$
(2
)
$
(2
)
$
5

$
(4
)
$
37

 
CDOs
330

(1
)
(14
)
62

(117
)
—

—

—

260

 
CMBS
62

—

(2
)
43

(13
)
(2
)
—

(67
)
21

 
Corporate
534

(6
)
10

87

(63
)
(126
)
368

(238
)
566

 
Foreign Govt./Govt. Agencies
17

—

1

8

(4
)
(5
)
—

—

17

 
Municipal
49

—

—

16

(1
)
—

8

—

72

 
RMBS
628

(1
)
4

268

(154
)
(26
)
2

(10
)
711

Total Fixed Maturities, AFS
1,625

(8
)
(1
)
519

(354
)
(161
)
383

(319
)
1,684

Fixed Maturities, FVO
2

—

—

1

—

(1
)
—

(2
)
—

Equity Securities, AFS
38

(1
)
6

4

—

(3
)
—

—

44

Freestanding Derivatives
 
 
 
 
 
 
 
 
 
 
Equity
—

(8
)
—

8

—

—

—

—

—

 
Interest rate
(29
)
(1
)
—

—

—

—

—

—

(30
)
 
GMWB hedging instruments
135

(60
)
—

—

—

—

—

6

81

 
Macro hedge program
147

(38
)
—

63

(6
)
—

—

1

167

Total Freestanding Derivatives [5]
253

(107
)
—

71

(6
)
—

—

7

218

Reinsurance Recoverable for GMWB
83

(24
)
—

—

14

—

—

—

73

Separate Accounts
139

(1
)
(3
)
320

(15
)
(78
)
17

(178
)
201

Total Assets
$
2,140

$
(141
)
$
2

$
915

$
(361
)
$
(243
)
$
400

$
(492
)
$
2,220

(Liabilities)
 
 
 
 
 
 
 
 
 
Other Policyholder Funds and Benefits Payable
 
 
 
 
 
 
 
 
 
 
Guaranteed Withdrawal Benefits
(262
)
88

—

—

(67
)
—

—

—

(241
)
 
Equity Linked Notes
(26
)
(7
)
—

—

—

—

—

—

(33
)
Total Other Policyholder Funds and Benefits Payable
(288
)
81

—

—

(67
)
—

—

—

(274
)
Total Liabilities
$
(288
)
$
81

$
—

$
—

$
(67
)
$
—

$
—

$
—

$
(274
)
[1]
The Company classifies realized and unrealized gains (losses) on GMWB reinsurance derivatives and GMWB embedded derivatives as unrealized gains (losses) for purposes of disclosure in this table because it is impracticable to track on a contract-by-contract basis the realized gains (losses) for these derivatives and embedded derivatives.
[2]
Amounts in these rows are generally reported in net realized capital gains (losses). The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on net income for the Company. All amounts are before income taxes and amortization of DAC.
[3]
All amounts are before income taxes and amortization of DAC.
[4]
Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs.
[5]
Derivative instruments are reported in this table on a net basis for asset (liability) positions and reported in the Consolidated Balance Sheets in other investments and other liabilities.
[6]
Includes both market and non-market impacts in deriving realized and unrealized gains (losses).

F- 27
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2. Fair Value Measurements (continued)

Changes in Unrealized Gains (Losses) included in Net Income for Financial Instruments Classified as Level 3 Still Held at Year End
 
 
December 31, 2017 [1] [2]
December 31, 2016 [1] [2]
Assets
 
 
Fixed Maturities, AFS
 
 
 
CMBS
$
—

$
(1
)
 
Corporate
(1
)
(13
)
Total Fixed Maturities, AFS
(1
)
(14
)
Equity Securities, AFS
—

(1
)
Freestanding Derivatives
 
 
 
Interest Rate
1

—

 
GMWB hedging instruments
(61
)
(52
)
 
Macro hedge program
(77
)
(33
)
Total Freestanding Derivatives
(137
)
(85
)
Reinsurance Recoverable for GMWB
(52
)
(24
)
Separate Accounts
1

—

Total Assets
$
(189
)
$
(124
)
(Liabilities)
 
 
Other Policyholder Funds and Benefits Payable
 
 
 
Guaranteed Withdrawal Benefits
$
231

$
88

 
Equity Linked Notes
(4
)
(7
)
Total Other Policyholder Funds and Benefits Payable
227

81

Total Liabilities
$
227

$
81

[1]
All amounts in these rows are reported in net realized capital gains (losses). The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on net income for the Company. All amounts are before income taxes and amortization of DAC.
[2]
Amounts presented are for Level 3 only and therefore may not agree to other disclosures included herein.
Fair Value Option
The Company has elected the fair value option for certain securities that contain embedded credit derivatives with underlying credit risk, related to residential real estate, and these securities are included within Fixed Maturities, FVO on the Consolidated Balance Sheets.
The Company also previously elected the fair value option for certain equity securities in order to align the accounting with total return swap contracts that hedged the risk associated with the investments. The swaps did not qualify for hedge accounting and the change in value of both the equity securities and the total return swaps were recorded in net realized capital gains and losses. These equity securities were classified within equity securities, AFS on the Consolidated Balance Sheets. Income earned from FVO securities was recorded in net investment income and changes in fair value were recorded in net realized capital gains and losses. The Company did not hold any of these equity securities as of December 31, 2017 or December 31, 2016.

F- 28
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2. Fair Value Measurements (continued)

Changes in Fair Value of Assets using the Fair Value Option
 
For the year ended December 31,
 
2017
2016
2015
Assets
 
 
 
Fixed maturities, FVO
 
 
 
CDOs
$
—

$
—

$
1

Corporate
—

—

(3
)
Foreign government
—

—

2

RMBS
—

3

—

Total fixed maturities, FVO
$
—

$
3

$
—

Equity, FVO
1

(34
)
(12
)
Total realized capital gains (losses)
$
1

$
(31
)
$
(12
)
Fair Value of Assets and Liabilities using the Fair Value Option
 
As of December 31,
 
2017
2016
Assets
 
 
Fixed maturities, FVO
 
 
RMBS
$
32

$
82

Total fixed maturities, FVO
$
32

$
82

Financial Assets and Liabilities Not Carried at Fair Value
 
Fair Value Hierarchy Level
Carrying Amount
Fair Value
 
December 31, 2017
Assets
 
 
 
Policy loans
Level 3
$
1,432

$
1,432

Mortgage loans
Level 3
$
2,872

$
2,941

Liabilities
 
 
 
Other policyholder funds and benefits payable [1]
Level 3
$
5,905

$
6,095

Consumer notes [2] [3]
Level 3
$
8

$
8

Assumed investment contracts [3]
Level 3
$
342

$
361

 
December 31, 2016
Assets
 
 
 
Policy loans
Level 3
$
1,442

$
1,442

Mortgage loans
Level 3
$
2,811

$
2,843

Liabilities
 
 
 
Other policyholder funds and benefits payable [1]
Level 3
$
6,436

$
6,626

Consumer notes [2] [3]
Level 3
$
20

$
20

Assumed investment contracts [3]
Level 3
$
487

$
526

[1]
Excludes group accident and health and universal life insurance contracts, including corporate owned life insurance.
[2]
Excludes amounts carried at fair value and included in preceding disclosures.
[3]
Included in other liabilities in the Consolidated Balance Sheets.
Fair values for policy loans were determined using current loan coupon rates, which reflect the current rates available under the contracts. As a result, the fair value approximates the carrying value of the policy loans.
Fair values for mortgage loans were estimated using discounted cash flow calculations based on current lending rates for similar type loans. Current lending rates reflect changes in credit spreads and the remaining terms of the loans.

F- 29
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2. Fair Value Measurements (continued)

Fair values for other policyholder funds and benefits payable and assumed investment contracts, not carried at fair value, are estimated based on the cash surrender values of the underlying policies or by estimating future cash flows discounted at current interest rates adjusted for credit risk.
Fair values for consumer notes were estimated using discounted cash flow calculations using current interest rates adjusted for estimated loan durations.

F- 30

HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
3. Investments


Net Investment Income
 
For the years ended December 31,
(Before-tax)
2017
2016
2015
Fixed maturities [1]
$
995

$
1,049

$
1,095

Equity securities
9

8

7

Mortgage loans
124

135

152

Policy loans
79

83

82

Limited partnerships and other alternative investments
75

86

97

Other investments [2]
54

64

82

Investment expenses
(55
)
(52
)
(59
)
Total net investment income
$
1,281

$
1,373

$
1,456

[1]
Includes net investment income on short-term investments.
[2]
Includes income from derivatives that hedge fixed maturities and qualify for hedge accounting.
Net Realized Capital Losses
 
For the years ended December 31,
(Before-tax)
2017
2016
2015
Gross gains on sales
$
226

$
211

$
239

Gross losses on sales
(58
)
(93
)
(211
)
Net OTTI losses recognized in earnings
(14
)
(28
)
(61
)
Valuation allowances on mortgage loans
2

—

(4
)
Results of variable annuity hedge program
 
 
 
GMWB derivatives, net
48

(38
)
(87
)
Macro hedge program
(260
)
(163
)
(46
)
Total results of variable annuity hedge program
(212
)
(201
)
(133
)
Transactional foreign currency revaluation
(1
)
(70
)
(4
)
Non-qualifying foreign currency derivatives
(5
)
57

(16
)
Other, net [1]
2

(39
)
44

Net realized capital losses
$
(60
)
$
(163
)
$
(146
)
[1]
Includes non-qualifying derivatives, excluding variable annuity hedge program and foreign currency derivatives, of $(13), $(12), and $46, respectively for 2017, 2016 and 2015.
Net realized capital gains and losses from investment sales are reported as a component of revenues and are determined on a specific identification basis. Before tax, net gains and losses on sales and impairments previously reported as unrealized gains or losses in AOCI were $153, $89 and $(27) for the years ended December 31, 2017, 2016 and 2015, respectively.
Sales of AFS Securities
 
For the years ended December 31,
 
2017
2016
2015
Fixed maturities, AFS
 
 
 
Sale proceeds
$
7,979

$
7,409

$
9,454

Gross gains
211

206

195

Gross losses
(56
)
(85
)
(161
)
Equity securities, AFS
 
 
 
Sale proceeds
$
203

$
321

$
586

Gross gains
13

4

26

Gross losses
(1
)
(8
)
(26
)
Sales of AFS securities in 2017 were primarily a result of duration and liquidity management, as well as tactical changes to the portfolio as a result of changing market conditions.

F- 31
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
3. Investments (continued)


Recognition and Presentation of Other-Than-Temporary Impairments
The Company will record an other-than-temporary impairment (“OTTI”) for fixed maturities and certain equity securities with debt-like characteristics (collectively “debt securities”) if the Company intends to sell or it is more likely than not that the Company will be required to sell the security before a recovery in value. A corresponding charge is recorded in net realized capital losses equal to the difference between the fair value and amortized cost basis of the security.
The Company will also record an OTTI for those debt securities for which the Company does not expect to recover the entire amortized cost basis. For these securities, the excess of the amortized cost basis over its fair value is separated into the portion representing a credit OTTI, which is recorded in net realized capital losses, and the remaining non-credit amount, which is recorded in OCI. The credit OTTI amount is the excess of its amortized cost basis over the Company’s best estimate of discounted expected future cash flows. The non-credit amount is the excess of the best estimate of the discounted expected future cash flows over the fair value. The Company’s best estimate of discounted expected future cash flows becomes the new cost basis and accretes prospectively into net investment income over the estimated remaining life of the security.
The Company’s best estimate of expected future cash flows is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions regarding the future performance. The Company considers, but is not limited to (a) changes in the financial condition of the issuer and the underlying collateral, (b) whether the issuer is current on contractually obligated interest and principal payments, (c) credit ratings, (d) payment structure of the security and (e) the extent to which the fair value has been less than the amortized cost of the security.
For non-structured securities, assumptions include, but are not limited to, economic and industry-specific trends and fundamentals, security-specific developments, industry earnings multiples and the issuer’s ability to restructure and execute asset sales.
For structured securities, assumptions include, but are not limited to, various performance indicators such as historical and projected default and recovery rates, credit ratings, current and projected delinquency rates, loan-to-value ("LTV") ratios, average cumulative collateral loss rates that vary by vintage year, prepayment speeds, and property value declines. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries which may include estimating the underlying collateral value.
The Company will also record an OTTI for equity securities where the decline in the fair value is deemed to be other-than-temporary. A corresponding charge is recorded in net realized capital losses equal to the difference between the fair value and cost basis of the security. The previous cost basis less the impairment becomes the new cost basis. The Company’s evaluation and assumptions used to determine an equity OTTI include, but is not limited to, (a) the length of time and extent to which the fair value has been less than the cost of the security, (b) changes in the financial condition, credit rating and near-term prospects of the issuer, (c) whether the issuer is current on preferred stock dividends and (d) the intent and ability of the Company to retain the investment for a period of time sufficient to allow for recovery. For the remaining equity securities which are determined to be temporarily impaired, the Company asserts its intent and ability to retain those equity securities until the price recovers.
Impairments in Earnings by Type

 
For the years ended December 31,
 
2017
2016
2015
Intent-to-sell impairments
$
—

$
4

$
24

Credit impairments
14

22

23

Impairments on equity securities
—

2

14

Total impairments
$
14

$
28

$
61


F- 32
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
3. Investments (continued)


Cumulative Credit Impairments

 
For the years ended December 31,
(Before-tax)
2017
2016
2015
Balance as of beginning of period
$
(170
)
$
(211
)
$
(296
)
Additions for credit impairments recognized on [1]:
 
 
 
Securities not previously impaired
(1
)
(9
)
(11
)
Securities previously impaired
(13
)
(13
)
(12
)
Reductions for credit impairments previously recognized on:
 
 
 
Securities that matured or were sold during the period
82

44

58

Securities the Company made the decision to sell or more likely than not will be required to sell
—

—

1

Securities due to an increase in expected cash flows
14

19

49

Balance as of end of period
$
(88
)
$
(170
)
$
(211
)
[1]
These additions are included in the net OTTI losses recognized in earnings in the Consolidated Statements of Operations.
Available-for-Sale Securities
AFS Securities by Type
 
December 31, 2017
December 31, 2016
 
Cost or Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value
Non-Credit OTTI [1]
Cost or Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value
Non-Credit OTTI [1]
ABS
$
821

$
9

$
(11
)
$
819

$
—

$
1,011

$
9

$
(27
)
$
993

$
—

CDOs
886

2

—

888

—

893

49

(2
)
940

—

CMBS
2,061

45

(22
)
2,084

(1
)
2,135

45

(34
)
2,146

(1
)
Corporate
12,587

1,483

(32
)
14,038

—

13,677

1,111

(95
)
14,693

—

Foreign govt./govt. agencies
379

30

(2
)
407

—

337

18

(10
)
345

—

Municipal
1,125

142

(1
)
1,266

—

1,098

97

(6
)
1,189

—

RMBS
1,388

41

(2
)
1,427

—

1,742

34

(16
)
1,760

—

U.S. Treasuries
1,667

206

(3
)
1,870

—

1,614

153

(14
)
1,753

—

Total fixed maturities, AFS
20,914

1,958

(73
)
22,799

(1
)
22,507

1,516

(204
)
23,819

(1
)
Equity securities, AFS
140

14

—

154

—

142

12

(2
)
152

—

Total AFS securities
$
21,054

$
1,972

$
(73
)
$
22,953

$
(1
)
$
22,649

$
1,528

$
(206
)
$
23,971

$
(1
)
[1]
Represents the amount of cumulative non-credit OTTI losses recognized in OCI on securities that also had credit impairments. These losses are included in gross unrealized losses as of December 31, 2017 and 2016.
Fixed maturities, AFS, by Contractual Maturity Year
 
December 31, 2017
 
December 31, 2016
Contractual Maturity
Amortized Cost
Fair Value
 
Amortized Cost
Fair Value
One year or less
$
844

$
850

 
$
722

$
727

Over one year through five years
3,498

3,580

 
4,184

4,301

Over five years through ten years
3,178

3,321

 
3,562

3,649

Over ten years
8,238

9,830

 
8,258

9,303

Subtotal
15,758

17,581

 
16,726

17,980

Mortgage-backed and asset-backed securities
5,156

5,218

 
5,781

5,839

Total fixed maturities, AFS
$
20,914

$
22,799

 
$
22,507

$
23,819

Estimated maturities may differ from contractual maturities due to security call or prepayment provisions. Due to the potential for variability in payment speeds (i.e. prepayments or extensions), mortgage-backed and asset-backed securities are not categorized by contractual maturity.

F- 33
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
3. Investments (continued)


Concentration of Credit Risk
The Company aims to maintain a diversified investment portfolio including issuer, sector and geographic stratification, where applicable, and has established certain exposure limits, diversification standards and review procedures to mitigate credit risk.
The Company had no investment exposure to any credit concentration risk of a single issuer greater than 10% of the Company's stockholder's equity, other than the U.S. government and certain U.S. government securities as of December 31, 2017 or December 31, 2016. As of December 31, 2017, other than U.S. government and certain U.S. government agencies, the Company’s three largest exposures by issuer were HSBC Holdings PLC, Microsoft Corporation, and National Grid PLC, which each comprised less than 1% of total invested assets. As of December 31, 2016, other than U.S. government and certain U.S. government agencies, the Company’s three largest exposures by issuer were National Grid PLC, HSBC Holdings PLC, and Oracle Corp., which each comprised less than 1% of total invested assets.
The Company’s three largest exposures by sector as of December 31, 2017, were financial services, utilities, and CMBS which comprised approximately 9%, 9% and 7%, respectively, of total invested assets. The Company’s three largest exposures by sector as of December 31, 2016 were financial services, utilities, and consumer non-cyclical which comprised approximately 10%, 9% and 7%, respectively, of total invested assets.
Unrealized Losses on AFS Securities
Unrealized Loss Aging for AFS Securities by Type and Length of Time as of December 31, 2017
 
Less Than 12 Months
 
12 Months or More
 
Total
 
Amortized Cost
Fair Value
Unrealized Losses
 
Amortized Cost
Fair Value
Unrealized Losses
 
Amortized Cost
Fair Value
Unrealized Losses
ABS
$
158

$
157

$
(1
)
 
$
219

$
209

$
(10
)
 
$
377

$
366

$
(11
)
CDOs
242

242

—

 
37

37

—

 
279

279

—

CMBS
524

517

(7
)
 
346

331

(15
)
 
870

848

(22
)
Corporate
1,082

1,074

(8
)
 
779

755

(24
)
 
1,861

1,829

(32
)
Foreign govt./govt. agencies
60

59

(1
)
 
35

34

(1
)
 
95

93

(2
)
Municipal
9

9

—

 
10

9

(1
)
 
19

18

(1
)
RMBS
288

287

(1
)
 
28

27

(1
)
 
316

314

(2
)
U.S. Treasuries
382

380

(2
)
 
38

37

(1
)
 
420

417

(3
)
Total fixed maturities, AFS
2,745

2,725

(20
)
 
1,492

1,439

(53
)
 
4,237

4,164

(73
)
Equity securities, AFS
6

6

—

 
3

3

—

 
9

9

—

Total securities in an unrealized loss position
$
2,751

$
2,731

$
(20
)
 
$
1,495

$
1,442

$
(53
)
 
$
4,246

$
4,173

$
(73
)

F- 34
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
3. Investments (continued)


Unrealized Loss Aging for AFS Securities by Type and Length of Time as of December 31, 2016
 
Less Than 12 Months
 
12 Months or More
 
Total
 
Amortized Cost
Fair Value
Unrealized Losses
 
Amortized Cost
Fair Value
Unrealized Losses
 
Amortized Cost
Fair Value
Unrealized Losses
ABS
$
249

$
248

$
(1
)
 
$
265

$
239

$
(26
)
 
$
514

$
487

$
(27
)
CDOs
325

325

—

 
210

208

(2
)
 
535

533

(2
)
CMBS
1,058

1,030

(28
)
 
139

133

(6
)
 
1,197

1,163

(34
)
Corporate
2,535

2,464

(71
)
 
402

378

(24
)
 
2,937

2,842

(95
)
Foreign govt./govt. agencies
164

155

(9
)
 
6

5

(1
)
 
170

160

(10
)
Municipal
166

160

(6
)
 
—

—

—

 
166

160

(6
)
RMBS
548

535

(13
)
 
198

195

(3
)
 
746

730

(16
)
U.S. Treasuries
385

371

(14
)
 
—

—

—

 
385

371

(14
)
Total fixed maturities, AFS
5,430

5,288

(142
)
 
1,220

1,158

(62
)
 
6,650

6,446

(204
)
Equity securities, AFS
59

57

(2
)
 
5

5

—

 
64

62

(2
)
Total securities in an unrealized loss position
$
5,489

$
5,345

$
(144
)
 
$
1,225

$
1,163

$
(62
)
 
$
6,714

$
6,508

$
(206
)
As of December 31, 2017, AFS securities in an unrealized loss position consisted of 1,254 securities, primarily in the corporate and CMBS sector, which were depressed primarily due to an increase in interest rates and/or widening of credit spreads since the securities were purchased. As of December 31, 2017, 93% of these securities were depressed less than 20% of cost or amortized cost. The improvement in unrealized losses during 2017 was primarily attributable to tighter credit spreads.
Most of the securities depressed for twelve months or more primarily relate to student loan ABS, structured securities with exposure to commercial real estate, and corporate securities. Student loan ABS were primarily depressed because the securities have floating-rate coupons and have long-dated maturities, and current credit spreads are wider than when these securities were purchased. Corporate securities and commercial real estate securities were primarily depressed because current market spreads are wider than spreads at the securities' respective purchase dates. The Company neither has an intention to sell nor does it expect to be required to sell the securities outlined in the preceding discussion.
Mortgage Loans
Mortgage Loan Valuation Allowances
Commercial mortgage loans are considered to be impaired when management estimates that, based upon current information and events, it is probable that the Company will be unable to collect amounts due according to the contractual terms of the loan agreement. The Company reviews mortgage loans on a quarterly basis to identify potential credit losses. Among other factors, management reviews current and projected macroeconomic trends, such as unemployment rates, and property-specific factors such as rental rates, occupancy levels, LTV ratios and debt service coverage ratios (“DSCR”). In addition, the Company considers historical, current and projected delinquency rates and property values. Estimates of collectibility require the use of significant management judgment and include the probability and timing of borrower default and loss severity estimates. In addition, cash flow projections may change based upon new information about the borrower's ability to pay and/or the value of underlying collateral such as changes in projected property value estimates.
For mortgage loans that are deemed impaired, a valuation allowance is established for the difference between the carrying amount and estimated value. The mortgage loan's estimated value is most frequently the Company's share of the fair value of the collateral but may also be the Company’s share of either (a) the present value of the expected future cash flows discounted at the loan’s effective interest rate or (b) the loan’s observable market price. A valuation allowance may be recorded for an individual loan or for a group of loans that have an LTV ratio of 90% or greater, a low DSCR or have other lower credit quality characteristics. Changes in valuation allowances are recorded in net realized capital gains and losses. Interest income on impaired loans is accrued to the extent it is deemed collectible and the borrowers continue to make payments under the original or restructured loan terms. The Company stops accruing interest income on loans when it is probable that the Company will not receive interest and principal payments according to the contractual terms of the loan agreement. The company resumes accruing interest income when it determines that sufficient collateral exists to satisfy the full amount of the loan principal and interest payments and when it is probable cash will be received in the foreseeable future. Interest income on defaulted loans is recognized when received.

F- 35
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
3. Investments (continued)


As of December 31, 2017, commercial mortgage loans had an amortized cost and carrying value of $2.9 billion, with no valuation allowance. As of December 31, 2016, commercial mortgage loans had an amortized cost of $2.8 billion, with a valuation allowance of $19 and a carrying value of $2.8 billion. Amortized cost represents carrying value prior to valuation allowances, if any.
As of December 31, 2017 and 2016, the carrying value of mortgage loans that had a valuation allowance was $0 and $31, respectively. There were no mortgage loans held-for-sale as of December 31, 2017 or December 31, 2016. As of December 31, 2017, the Company had an immaterial amount of mortgage loans that have had extensions or restructurings other than what is allowable under the original terms of the contract.
Valuation Allowance Activity
 
For the years ended December 31,
 
2017
 
2016
 
2015
Balance as of January 1
$
(19
)
 
$
(19
)
 
$
(15
)
 (Additions)/Reversals
(1
)
 
—

 
(4
)
Deductions
20

 
—

 
—

Balance as of December 31
$
—

 
$
(19
)
 
$
(19
)
The weighted-average LTV ratio of the Company’s commercial mortgage loan portfolio was 49% as of December 31, 2017, while the weighted-average LTV ratio at origination of these loans was 63%. LTV ratios compare the loan amount to the value of the underlying property collateralizing the loan. The loan collateral values are updated no less than annually through reviews of the underlying properties. Factors considered in estimating property values include, among other things, actual and expected property cash flows, geographic market data and the ratio of the property's net operating income to its value. DSCR compares a property’s net operating income to the borrower’s principal and interest payments. The weighted average DSCR of the Company’s commercial mortgage loan portfolio was 2.65x as of December 31, 2017. As of December 31, 2017 the Company held no delinquent commercial mortgages loan past due by 90 days or more. As of December 31, 2016, the Company held one delinquent commercial mortgage loan past due by 90 days or more. The loan had a total carrying value and valuation allowance of $15 and $16, respectively, and was not accruing income. Following the conclusion of the loan's foreclosure process, the property transferred at its carrying value, net of the valuation allowance, to a real-estate owned investment during 2017. As of December 31, 2017, the real-estate owned investment had a total carrying value of $15.
Commercial Mortgage Loans Credit Quality
 
December 31, 2017
 
December 31, 2016
Loan-to-value
Carrying Value
Avg. Debt-Service Coverage Ratio
 
Carrying Value
Avg. Debt-Service Coverage Ratio
Greater than 80%
$
5

1.26x
 
$
20

0.59x
65% - 80%
125

1.88x
 
182

2.17x
Less than 65%
2,742

2.69x
 
2,609

2.61x
Total commercial mortgage loans
$
2,872

2.65x
 
$
2,811

2.55x
Mortgage Loans by Region
 
December 31, 2017
 
December 31, 2016
 
Carrying Value
Percent of Total
 
Carrying Value
Percent of Total
East North Central
$
62

2.1
%
 
$
54

1.9
%
East South Central
14

0.5
%
 
14

0.5
%
Middle Atlantic
291

10.1
%
 
237

8.4
%
New England
92

3.2
%
 
93

3.3
%
Pacific
838

29.2
%
 
814

29.0
%
South Atlantic
608

21.2
%
 
613

21.8
%
West South Central
195

6.8
%
 
128

4.6
%
Other [1]
772

26.9
%
 
858

30.5
%
Total mortgage loans
$
2,872

100
%
 
$
2,811

100
%
[1]
Primarily represents loans collateralized by multiple properties in various regions.

F- 36
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
3. Investments (continued)


Mortgage Loans by Property Type
 
December 31, 2017
 
December 31, 2016
 
Carrying Value
Percent of Total
 
Carrying Value
Percent of Total
Commercial
 
 
 
 
 
Industrial
$
743

25.9
%
 
$
793

28.2
%
Lodging
24

0.8
%
 
25

0.9
%
Multifamily
662

23.0
%
 
535

19.0
%
Office
685

23.9
%
 
605

21.5
%
Retail
557

19.4
%
 
611

21.8
%
Other
201

7.0
%
 
242

8.6
%
Total mortgage loans
$
2,872

100
%
 
$
2,811

100
%
Variable Interest Entities
The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs primarily as an investor through normal investment activities.
A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s Condensed Consolidated Financial Statements. As of December 31, 2017 and December 31, 2016 the Company did not hold any VIEs for which it was the primary beneficiary.
Non-Consolidated VIEs
The Company, through normal investment activities, makes passive investments in limited partnerships and other alternative investments. Upon the adoption of the new consolidation guidance discussed above, these investments are now considered VIEs. For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments. The Company’s maximum exposure to loss as of December 31, 2017 and December 31, 2016 is limited to the total carrying value of $900 and $859, respectively, which are included in limited partnerships and other alternative investments in the Company's Consolidated Balance Sheets. As of December 31, 2017 and December 31, 2016, the Company has outstanding commitments totaling $673 and $497, respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. These investments are generally of a passive nature in that the Company does not take an active role in management.
In addition, the Company also makes passive investments in structured securities issued by VIEs for which the Company is not the manager. These investments are included in ABS, CDOs, CMBS and RMBS in the Available-for-Sale Securities table and fixed maturities, FVO, in the Company’s Consolidated Balance Sheets. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits and the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment.
Securities Lending, Repurchase Agreements and Other Collateral Transactions
The Company enters into securities financing transactions as a way to earn additional income or manage liquidity, primarily through securities lending and repurchase agreements.

F- 37
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
3. Investments (continued)


Securities Lending
Under a securities lending program, the Company lends certain fixed maturities within the corporate, foreign government/government agencies, and municipal sectors as well as equity securities to qualifying third-party borrowers in return for collateral in the form of cash or securities. For domestic and non-domestic loaned securities, respectively, borrowers provide collateral of 102% and 105% of the fair value of the securities lent at the time of the loan. Borrowers will return the securities to the Company for cash or securities collateral at maturity dates generally of 90 days or less. Security collateral on deposit from counterparties in connection with securities lending transactions may not be sold or re-pledged, except in the event of default by the counterparty, and is not reflected on the Company’s Condensed Consolidated Balance Sheets. Additional collateral is obtained if the fair value of the collateral falls below 100% of the fair value of the loaned securities. The agreements provide the counterparty the right to sell or re-pledge the securities loaned. If cash, rather than securities, is received as collateral, the cash is typically invested in short-term investments or fixed maturities and is reported as an asset on the Company's Condensed Consolidated Balance Sheets. Income associated with securities lending transactions is reported as a component of net investment income in the Company’s Condensed Consolidated Statements of Operations.
Repurchase Agreements
From time to time, the Company enters into repurchase agreements to manage liquidity or to earn incremental income. A repurchase agreement is a transaction in which one party (transferor) agrees to sell securities to another party (transferee) in return for cash (or securities), with a simultaneous agreement to repurchase the same securities at a specified price at a later date. These transactions generally have a contractual maturity of ninety days or less. Repurchase agreements include master netting provisions that provide both counterparties the right to offset claims and apply securities held by them with respect to their obligations in the event of a default. Although the Company has the contractual right to offset claims, the Company's current positions do not meet the specific conditions for net presentation.
Under repurchase agreements, the Company transfers collateral of U.S. government and government agency securities and receives cash. For repurchase agreements, the Company obtains cash in an amount equal to at least 95% of the fair value of the securities transferred. The agreements require additional collateral to be transferred when necessary and provide the counterparty the right to sell or re-pledge the securities transferred. The cash received from the repurchase program is typically invested in short-term investments or fixed maturities and is reported as an asset on the Company's Condensed Consolidated Balance Sheets. The Company accounts for the repurchase agreements as collateralized borrowings. The securities transferred under repurchase agreements are included in fixed maturities, AFS with the obligation to repurchase those securities recorded in other liabilities on the Company's Condensed Consolidated Balance Sheets.
From time to time, the Company enters into reverse repurchase agreements where the Company purchases securities and simultaneously agrees to resell the same or substantially the same securities. The agreements require additional collateral to be transferred to the Company when necessary and the Company has the right to sell or re-pledge the securities received. The Company accounts for reverse repurchase agreements as collateralized financing.
Securities Lending and Repurchase Agreements
 
December 31, 2017
December 31, 2016
 
Fair Value
Fair Value
Securities Lending Transactions:
 
 
Gross amount of securities on loan
$
674

$
435

Gross amount of associated liability for collateral received [1]
$
689

$
446

 
 
 
Repurchase agreements:
 
 
Gross amount of recognized liabilities for repurchase agreements
$
202

$
118

Gross amount of collateral pledged related to repurchase agreements [2]
$
206

$
121

[1]
Cash collateral received is reinvested in fixed maturities, AFS and short term investments which are included in the Condensed Consolidated Balance Sheets. Amount includes additional securities collateral received of $1 and $26 million which are excluded from the Company's Condensed Consolidated Balance Sheets as of December 31, 2017 and December 31, 2016, respectively.
[2]
Collateral pledged is included within fixed maturities, AFS and short term investments in the Company's Condensed Consolidated Balance Sheets.

F- 38
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
3. Investments (continued)


Other Collateral Transactions
The Company is required by law to deposit securities with government agencies in certain states in which it conducts business. As of December 31, 2017 and December 31, 2016, the fair value of securities on deposit was $22 and $21, respectively.
For disclosure of collateral in support of derivative transactions, refer to the Derivative Collateral Arrangements section of Note 4 - Derivative Instruments.
Equity Method Investments
The majority of the Company's investments in limited partnerships and other alternative investments, including hedge funds, mortgage and real estate funds, and private equity and other funds (collectively, “limited partnerships”), are accounted for under the equity method of accounting. The Company’s maximum exposure to loss as of December 31, 2017 is limited to the total carrying value of $1.0 billion. In addition, the Company has outstanding commitments totaling approximately $683, to fund limited partnership and other alternative investments as of December 31, 2017. The Company’s investments in limited partnerships are generally of a passive nature in that the Company does not take an active role in the management of the limited partnerships. In 2017, aggregate investment income (losses) from limited partnerships and other alternative investments exceeded 10% of the Company’s pre-tax consolidated net income. Accordingly, the Company is disclosing aggregated summarized financial data for the Company’s limited partnership investments. This aggregated summarized financial data does not represent the Company’s proportionate share of limited partnership assets or earnings. Aggregate total assets of the limited partnerships in which the Company invested totaled $161.1 billion and $100.6 billion as of December 31, 2017 and 2016, respectively. Aggregate total liabilities of the limited partnerships in which the Company invested totaled $46.5 billion and $17.6 billion as of December 31, 2017 and 2016, respectively. Aggregate net investment income (loss) of the limited partnerships in which the Company invested totaled $1.8 billion, $0.9 billion and $0.8 billion for the periods ended December 31, 2017, 2016 and 2015, respectively. Aggregate net income of the limited partnerships in which the Company invested totaled $8.1 billion, $7.4 billion, and $5.2 billion for the periods ended December 31, 2017, 2016 and 2015, respectively. As of, and for the period ended, December 31, 2017, the aggregated summarized financial data reflects the latest available financial information.

F- 39

HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
4. Derivatives


Derivative Instruments
The Company utilizes a variety of OTC, OTC-cleared and exchange traded derivative instruments as a part of its overall risk management strategy as well as to enter into replication transactions. Derivative instruments are used to manage risk associated with interest rate, equity market, commodity market, credit spread, issuer default, price, and currency exchange rate risk or volatility. Replication transactions are used as an economical means to synthetically replicate the characteristics and performance of assets that are permissible investments under the Company’s investment policies. The Company also may enter into and has previously issued financial instruments and products that either are accounted for as free-standing derivatives, such as certain reinsurance contracts, or as embedded derivative instruments, such as certain GMWB riders included with certain variable annuity products.
Strategies that Qualify for Hedge Accounting
Some of the Company's derivatives satisfy hedge accounting requirements as outlined in Note 1 of these financial statements. Typically, these hedging instruments include interest rate swaps and, to a lesser extent, foreign currency swaps where the terms or expected cash flows of the hedged item closely match the terms of the swap. The interest rate swaps are typically used to manage interest rate duration of certain fixed maturity securities or liability contracts. The hedge strategies by hedge accounting designation include:
Cash Flow Hedges
Interest rate swaps are predominantly used to manage portfolio duration and better match cash receipts from assets with cash disbursements required to fund liabilities. These derivatives primarily convert interest receipts on floating-rate fixed maturity securities to fixed rates. The Company has also entered into forward starting swap agreements to hedge the interest rate exposure related to the future purchase of fixed-rate securities, primarily to hedge interest rate risk inherent in the assumptions used to price certain product liabilities.
Foreign currency swaps are used to convert foreign currency-denominated cash flows related to certain investment receipts and liability payments to U.S. dollars in order to reduce cash flow fluctuations due to changes in currency rates.
Fair Value Hedges
The Company previously used interest rate swaps to hedge the changes in fair value of fixed maturity securities due to fluctuations in interest rates. These swaps were typically used to manage interest rate duration.
Non-qualifying Strategies
Derivative relationships that do not qualify for hedge accounting (“non-qualifying strategies”) primarily include the hedge program for the Company's variable annuity products as well as the hedging and replication strategies that utilize credit default swaps. In addition, hedges of interest rate, foreign currency and equity risk of certain fixed maturities, equities and liabilities do not qualify for hedge accounting.
The non-qualifying strategies include:
Credit Contracts
Credit default swaps are used to purchase credit protection on an individual entity or referenced index to economically hedge against default risk and credit-related changes in the value of fixed maturity securities. Credit default swaps are also used to assume credit risk related to an individual entity or referenced index as a part of replication transactions. These contracts require the Company to pay or receive a periodic fee in exchange for compensation from the counterparty should the referenced security issuers experience a credit event, as defined in the contract. In addition, the Company enters into credit default swaps to terminate existing credit default swaps, thereby offsetting the changes in value of the original swap going forward.
Interest Rate Swaps, Swaptions, and Futures
The Company uses interest rate swaps, swaptions, and futures to manage interest rate duration between assets and liabilities in certain investment portfolios. In addition, the Company enters into interest rate swaps to terminate existing swaps, thereby offsetting the changes in value of the original swap. As of both December 31, 2017 and 2016, the notional amount of interest rate swaps in offsetting relationships was $2.7 billion.
Foreign Currency Swaps and Forwards
The Company enters into foreign currency swaps to convert the foreign currency exposures of certain foreign currency-denominated fixed maturity investments to U.S. dollars. The Company also enters into foreign currency forwards to hedge non-U.S. dollar denominated cash and, previously, to hedge equity securities.

F- 40
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
4. Derivatives (continued)



Fixed Payout Annuity Hedge
The Company has obligations for certain yen denominated fixed payout annuities under an assumed reinsurance contract. The Company invests in U.S. dollar denominated assets to support the assumed reinsurance liability. The Company has in place pay U.S. dollar, receive yen swap contracts to hedge the currency and yen interest rate exposure between the U.S. dollar denominated assets and the yen denominated fixed liability reinsurance payments.
Equity Index Swaps and Options
The Company enters into equity index options to hedge the impact of a decline in the equity markets on the investment portfolio. The Company previously entered into total return swaps to hedge equity risk of specific common stock investments which were accounted for using fair value option in order to align the accounting treatment within net realized capital gains (losses). In addition, the Company formerly offered certain equity indexed products that remain in force, a portion of which contained embedded derivatives that require changes in value to be bifurcated from the host contract. The Company uses equity index swaps to economically hedge the equity volatility risk associated with the equity indexed products.
Commodity Contracts
The Company has used put option contracts on oil futures to partially offset potential losses related to certain fixed maturity securities that could be impacted by changes in oil prices. These options were terminated at the end of 2015.
GMWB Derivatives, net
The Company formerly offered certain variable annuity products with GMWB riders. The GMWB product is a bifurcated embedded derivative (“GMWB product derivatives”) that has a notional value equal to the GRB. The Company uses reinsurance contracts to transfer a portion of its risk of loss due to GMWB. The reinsurance contracts covering GMWB (“GMWB reinsurance contracts”) are accounted for as free-standing derivatives with a notional amount equal to the GRB reinsured.
The Company utilizes derivatives (“GMWB hedging instruments”) as part of a dynamic hedging program designed to hedge a portion of the capital market risk exposures of the non-reinsured GMWB riders. The GMWB hedging instruments hedge changes in interest rates, equity market levels, and equity volatility. These derivatives include customized swaps, interest rate swaps and futures, and equity swaps, options and futures, on certain indices including the S&P 500 index, EAFE index and NASDAQ index. The Company retains the risk for differences between assumed and actual policyholder behavior and between the performance of the actively managed funds underlying the separate accounts and their respective indices.
GMWB Hedging Instruments
 
Notional Amount
 
Fair Value
 
December 31, 2017
December 31, 2016
 
December 31, 2017
December 31, 2016
Customized swaps
$
5,023

$
5,191

 
$
59

$
100

Equity swaps, options, and futures
1,407

1,362

 
(31
)
(27
)
Interest rate swaps and futures
3,022

3,703

 
39

21

Total
$
9,452

$
10,256

 
$
67

$
94

Macro Hedge Program
The Company utilizes equity swaps, options, forwards and futures to provide partial protection against the statutory tail scenario risk arising from GMWB and the GMDB liabilities on the Company's statutory surplus. These derivatives cover some of the residual risks not otherwise covered by the dynamic hedging program.
Modified Coinsurance Reinsurance Contracts
As of December 31, 2017 and 2016, the Company had approximately $861 and $875, respectively, of invested assets supporting other policyholder funds and benefits payable reinsured under a modified coinsurance arrangement in connection with the sale of the Individual Life business, which was structured as a reinsurance transaction. The assets are primarily held in a trust established by the Company. The Company pays or receives cash quarterly to settle the operating results of the reinsured business, including the investment results. As a result of this modified coinsurance arrangement, the Company has an embedded derivative that transfers to the reinsurer certain unrealized changes in fair value of investments subject to interest rate and credit risk. The notional amount of the embedded derivative reinsurance contracts are the invested assets which are carried at fair value and support the reinsured reserves.

F- 41
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
4. Derivatives (continued)



Derivative Balance Sheet Classification
For reporting purposes, the Company has elected to offset within assets or liabilities based upon the net of the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty under a master netting agreement, which provides the Company with the legal right of offset. The following fair value amounts do not include income accruals or related cash collateral receivables and payables, which are netted with derivative fair value amounts to determine balance sheet presentation. Derivatives in the Company’s separate accounts, where the associated gains and losses accrue directly to policyholders are not included in the table below. The Company’s derivative instruments are held for risk management purposes, unless otherwise noted in the following table. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and is presented in the table to quantify the volume of the Company’s derivative activity. Notional amounts are not necessarily reflective of credit risk. The following tables exclude investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 2 - Fair Value Measurements of Notes to the Consolidated Financial Statements.
 
Net Derivatives
 
Asset Derivatives
 
Liability Derivatives
 
Notional Amount
 
Fair Value
 
Fair Value
 
Fair Value
Hedge Designation/ Derivative Type
Dec 31, 2017
Dec 31, 2016
 
Dec 31, 2017
 
Dec 31, 2016
 
Dec 31, 2017
Dec 31, 2016
 
Dec 31, 2017
Dec 31, 2016
Cash flow hedges
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
$
1,486

$
1,794

 
$
—

 
$
7

 
$
6

$
9

 
$
(6
)
$
(2
)
Foreign currency swaps
182

164

 
(12
)
 
(16
)
 
5

10

 
(17
)
(26
)
Total cash flow hedges
1,668

1,958

 
(12
)
 
(9
)
 
11

19

 
(23
)
(28
)
Non-qualifying strategies
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps and futures
3,219

2,774

 
(356
)
 
(411
)
 
339

249

 
(695
)
(660
)
Foreign exchange contracts
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps and forwards
342

382

 
(6
)
 
36

 
—

36

 
(6
)
—

Fixed payout annuity hedge
540

804

 
(170
)
 
(263
)
 
—

—

 
(170
)
(263
)
Credit contracts
 
 
 
 
 
 
 
 
 
 
 
 
Credit derivatives that purchase credit protection
80

131

 
(3
)
 
(3
)
 
—

—

 
(3
)
(3
)
Credit derivatives that assume credit risk [1]
380

458

 
3

 
4

 
9

5

 
(6
)
(1
)
Credit derivatives in offsetting positions
200

1,006

 
1

 
(1
)
 
9

16

 
(8
)
(17
)
Equity contracts
 
 
 
 
 
 
 
 
 
 
 
 
Equity index swaps and options
—

100

 
—

 
—

 
—

33

 
—

(33
)
Variable annuity hedge program
 
 
 
 
 
 
 
 
 
 
 
 
GMWB product derivatives [2]
11,390

13,114

 
(75
)
 
(241
)
 
—

—

 
(75
)
(241
)
GMWB reinsurance contracts
2,372

2,709

 
35

 
73

 
35

73

 
—

—

GMWB hedging instruments
9,452

10,256

 
67

 
94

 
120

190

 
(53
)
(96
)
Macro hedge program
7,252

6,532

 
23

 
178

 
45

201

 
(22
)
(23
)
Other
 
 
 
 
 
 
 
 
 
 
 
 
Modified coinsurance reinsurance contracts
861

875

 
55

 
68

 
55

68

 
—

—

Total non-qualifying strategies
36,088

39,141

 
(426
)
 
(466
)
 
612

871

 
(1,038
)
(1,337
)
Total cash flow hedges, fair value hedges, and non-qualifying strategies
$
37,756

$
41,099

 
$
(438
)
 
$
(475
)
 
$
623

$
890

 
$
(1,061
)
$
(1,365
)
Balance Sheet Location
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, available-for-sale
$
39

$
121

 
$
—

 
$
—

 
$
—

$
—

 
$
—

$
—

Other investments
10,340

12,732

 
135

 
235

 
302

325

 
(167
)
(90
)
Other liabilities
12,754

11,498

 
(588
)
 
(577
)
 
231

424

 
(819
)
(1,001
)
Reinsurance recoverables
3,233

3,584

 
90

 
141

 
90

141

 
—

—

Other policyholder funds and benefits payable
11,390

13,164

 
(75
)
 
(274
)
 
—

—

 
(75
)
(274
)
Total derivatives
$
37,756

$
41,099

 
$
(438
)
 
$
(475
)
 
$
623

$
890

 
$
(1,061
)
$
(1,365
)
[1]
The derivative instruments related to this strategy are held for other investment purposes.
[2]
These derivatives are embedded within liabilities and are not held for risk management purposes.

F- 42
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
4. Derivatives (continued)



Offsetting of Derivative Assets/Liabilities
The following tables present the gross fair value amounts, the amounts offset, and net position of derivative instruments eligible for offset in the Company's Consolidated Balance Sheets. Amounts offset include fair value amounts, income accruals and related cash collateral receivables and payables associated with derivative instruments that are traded under a common master netting agreement, as described in the preceding discussion. Also included in the tables are financial collateral receivables and payables, which are contractually permitted to be offset upon an event of default, although are disallowed for offsetting under U.S. GAAP.
 
(i)
(ii)
(iii) = (i) - (ii)
 
(v) = (iii) - (iv)
 
 
 
Net Amounts Presented in the Statement of Financial Position
Collateral Disallowed for Offset in the Statement of Financial Position
 
 
Gross Amounts of Recognized Assets (Liabilities)
Gross Amounts Offset in the Statement of Financial Position
Derivative Assets [1] (Liabilities) [2]
Accrued Interest and Cash Collateral (Received) [3] Pledged [2]
Financial Collateral (Received) Pledged [4]
Net Amount
As of December 31, 2017
 
 
 
 
 
 
Other investments
$
533

$
491

$
135

$
(93
)
$
—

$
42

Other liabilities
(986
)
(307
)
(588
)
(91
)
(674
)
(5
)
As of December 31, 2016
 
 
 
 
 
 
Other investments
$
749

$
588

$
235

$
(74
)
$
101

$
60

Other liabilities
(1,091
)
(396
)
(577
)
(118
)
(655
)
(40
)
[1]
Included in other invested assets in the Company's Consolidated Balance Sheets.
[2]
Included in other liabilities in the Company's Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty.
[3]
Included in other investments in the Company's Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty.
[4]
Excludes collateral associated with exchange-traded derivative instruments.
Cash Flow Hedges
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge ineffectiveness are recognized in current period earnings. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.
Derivatives in Cash Flow Hedging Relationships
 
Gain (Loss) Recognized in OCI on Derivative (Effective  Portion)
 
2017
2016
2015
Interest rate swaps
$
(13
)
$
(16
)
$
3

Foreign currency swaps
4

2

—

Total
$
(9
)
$
(14
)
$
3

Derivatives in Cash Flow Hedging Relationships
 
 
Gain (Loss) Reclassified from AOCI into Income (Effective  Portion)
 
 
2017
2016
2015
Interest rate swaps
Net realized capital (losses) gains
$
(1
)
$
1

$
(1
)
Interest rate swaps
Net investment income
26

25

33

Foreign currency swaps
Net realized capital gains (losses)
11

(2
)
(9
)
Total
 
$
36

$
24

$
23

During the years ended December 31, 2017, 2016, and 2015, the Company had no ineffectiveness recognized in income within net realized gains (losses).

F- 43
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
4. Derivatives (continued)



As of December 31, 2017, the before-tax deferred net gains on derivative instruments recorded in AOCI that are expected to be reclassified to earnings during the next twelve months are $54. This expectation is based on the anticipated interest payments on hedged investments in fixed maturity securities that will occur over the next twelve months, at which time the Company will recognize the deferred net gains (losses) as an adjustment to net investment income over the term of the investment cash flows.
During the years ended December 31, 2017, 2016, and 2015, the Company had no net reclassifications from AOCI to earnings resulting from the discontinuance of cash-flow hedges due to forecasted transactions that were no longer probable of occurring.
Fair Value Hedges
For derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivatives as well as the offsetting loss or gain on the hedged items attributable to the hedged risk are recognized in current earnings. The Company includes the gain or loss on the derivative in the same line item as the offsetting loss or gain on the hedged item. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.
For the years ended December 31, 2017, 2016, and 2015, the Company recognized in income immaterial gains and (losses) for the ineffective portion of fair value hedges related to the derivative instrument and the hedged item.
Non-qualifying Strategies
For non-qualifying strategies, including embedded derivatives that are required to be bifurcated from their host contracts and accounted for as derivatives, the gain or loss on the derivative is recognized currently in earnings within net realized capital gains (losses).
Non-qualifying Strategies
Gain (Loss) Recognized within Net Realized Capital Gains (Losses)
 
December 31,
 
2017
2016
2015
Variable annuity hedge program
 
 
 
GMWB product derivatives
$
231

$
88

$
(59
)
GMWB reinsurance contracts
(49
)
(14
)
17

GMWB hedging instruments
(134
)
(112
)
(45
)
Macro hedge program
(260
)
(163
)
(46
)
Total variable annuity hedge program
(212
)
(201
)
(133
)
Foreign exchange contracts
 
 
 
Foreign currency swaps and forwards
(9
)
32

5

Fixed payout annuity hedge
4

25

(21
)
Total foreign exchange contracts
(5
)
57

(16
)
Other non-qualifying derivatives
 
 
 
Interest rate contracts
 
 
 
Interest rate swaps, swaptions, and futures
4

(18
)
(7
)
Credit contracts
 
 
 
Credit derivatives that purchase credit protection
(12
)
(9
)
3

Credit derivatives that assume credit risk
18

15

(4
)
Equity contracts
 
 
 
Equity index swaps and options
3

30

19

Commodity contracts
 
 
 
Commodity options
—

—

(5
)
Other
 
 
 
Modified coinsurance reinsurance contracts
(13
)
(12
)
46

Total other non-qualifying derivatives
(13
)
(12
)
46

Total [1]
$
(217
)
$
(138
)
$
(97
)
[1] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 2 - Fair Value Measurements.
Credit Risk Assumed through Credit Derivatives
The Company enters into credit default swaps that assume credit risk of a single entity or referenced index in order to synthetically replicate investment transactions that are permissible under the Company's investment policies. The Company will receive periodic payments based on an agreed upon rate and notional amount and will only make a payment if there is a credit event. A credit event payment will typically be equal to the notional value of the swap contract less the value of the referenced security issuer’s debt

F- 44
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
4. Derivatives (continued)



obligation after the occurrence of the credit event. A credit event is generally defined as a default on contractually obligated interest or principal payments or bankruptcy of the referenced entity. The credit default swaps in which the Company assumes credit risk primarily reference investment grade single corporate issuers and baskets, which include standard diversified portfolios of corporate and CMBS issuers. The diversified portfolios of corporate issuers are established within sector concentration limits and may be divided into tranches that possess different credit ratings.
As of December 31, 2017
 
 
 
 
 
Underlying Referenced
Credit Obligation(s) [1]
 
 
 
Credit Derivative type by derivative risk exposure
Notional
Amount [2]
Fair
Value
Weighted
Average
Years to
Maturity
 
Type
Average
Credit
Rating
 
Offsetting
Notional
Amount [3]
Offsetting
Fair Value [3]
Single name credit default swaps
 
 
 
 
 
 
 
 
 
Investment grade risk exposure
$
120

$
3

5 years
 
Corporate Credit/ Foreign Gov.
A-
 
$
—

$
—

Below investment grade risk exposure
43

—

Less than 1 Year
 
Corporate Credit
B
 
43

—

Basket credit default swaps [4]
 
 
 
 
 
 
 
 
 
Investment grade risk exposure
250

—

5 years
 
Corporate Credit
BBB+
 
—

—

Below investment grade risk exposure
22

2

3 years
 
Corporate Credit
B+
 
22

—

Investment grade risk exposure
15

(1
)
4 years
 
CMBS Credit
A
 
5

—

Below investment grade risk exposure
30

(5
)
Less than 1 Year
 
CMBS Credit
CCC
 
30

5

Total [5]
$
480

$
(1
)
 
 
 
 
 
$
100

$
5


As of December 31, 2016
 
 
 
 
 
Underlying Referenced
Credit Obligation(s) [1]
 
 
 
Credit Derivative type by derivative risk exposure
Notional Amount [2]
Fair
Value
Weighted
Average
Years to
Maturity
 
Type
Average
Credit
Rating
 
Offsetting Notional Amount [3]
Offsetting Fair Value [3]
Single name credit default swaps
 
 
 
 
 
 
 
 
 
Investment grade risk exposure
$
88

$
—

3 years
 
Corporate Credit/ Foreign Gov.
A
 
$
45

$
—

Below investment grade risk exposure
43

—

1 year
 
Corporate Credit
B-
 
43

—

Basket credit default swaps [4]
 
 
 
 
 
 
 
 
 
Investment grade risk exposure
493

5

3 years
 
Corporate Credit
BBB+
 
225

(1
)
Below investment grade risk exposure
22

2

4 years
 
Corporate Credit
B
 
22

(2
)
Investment grade risk exposure
158

(2
)
2 years
 
CMBS Credit
AA+
 
111

1

Below investment grade risk exposure
57

(13
)
1 year
 
CMBS Credit
CCC
 
57

13

Embedded credit derivatives
 
 
 
 
 
 
 
 
 
Investment grade risk exposure
100

100

Less than 1 year
 
Corporate Credit
A+
 
—

—

Total [5]
$
961

$
92

 
 
 
 
 
$
503

$
11

[1]
The average credit ratings are based on availability and are generally the midpoint of the available ratings among Moody’s, S&P, Fitch and Morningstar. If no rating is available from a rating agency, then an internally developed rating is used.
[2]
Notional amount is equal to the maximum potential future loss amount. These derivatives are governed by agreements, clearing house rules and applicable law which include collateral posting requirements. There is no additional specific collateral related to these contracts or recourse provisions included in the contracts to offset losses.
[3]
The Company has entered into offsetting credit default swaps to terminate certain existing credit default swaps, thereby offsetting the future changes in value of, or losses paid related to, the original swap.
[4]
Comprised of swaps of standard market indices of diversified portfolios of corporate and CMBS issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index.
[5]
Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 2 - Fair Value Measurements.

F- 45
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
4. Derivatives (continued)



Derivative Collateral Arrangements
The Company enters into various collateral arrangements in connection with its derivative instruments, which require both the pledging and accepting of collateral. As of December 31, 2017 and 2016, the Company pledged cash collateral associated with derivative instruments with a fair value of $32 and $134, respectively, for which the collateral receivable has been primarily included within other assets on the Company's Consolidated Balance Sheets. As of December 31, 2017 and 2016, the Company also pledged securities collateral associated with derivative instruments with a fair value of $729 and $830, respectively, which have been included in fixed maturities on the Consolidated Balance Sheets. The counterparties have the right to sell or re-pledge these securities.
As of December 31, 2017 and 2016, the Company accepted cash collateral associated with derivative instruments of $310 and $333, respectively, which was invested and recorded in the Consolidated Balance Sheets in fixed maturities and short-term investments with corresponding amounts recorded in other investments or other liabilities as determined by the Company's election to offset on the balance sheet. The Company also accepted securities collateral as of December 31, 2016 with a fair value of $107, of which the Company has the ability to sell or repledge $81. As of December 31, 2017 the Company did not hold any securties collateral. As of December 31, 2017 and 2016, the Company had no repledged securities and did not sell any securities.

F- 46

HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
5. Reinsurance

The Company cedes insurance to affiliated and unaffiliated insurers to enable the Company to manage capital and risk exposure. Such arrangements do not relieve the Company of its primary liability to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company's procedures include careful initial selection of its reinsurers, structuring agreements to provide collateral funds where necessary, and regularly monitoring the financial condition and ratings of its reinsurers.
Reinsurance Recoverables
Reinsurance recoverables include balances due from reinsurance companies and are presented net of an allowance for uncollectible reinsurance. Reinsurance recoverables include an estimate of the amount of gross losses and loss adjustment expense reserves that may be ceded under the terms of the reinsurance agreements, including incurred but not reported unpaid losses. The Company’s estimate of losses and loss adjustment expense reserves ceded to reinsurers is based on assumptions that are consistent with those used in establishing the gross reserves for business ceded to the reinsurance contracts. The Company calculates its ceded reinsurance projection based on the terms of any applicable reinsurance agreements, including an estimate of how incurred but not reported losses will ultimately be ceded under reinsurance agreements. Accordingly, the Company’s estimate of reinsurance recoverables is subject to similar risks and uncertainties as the estimate of the gross reserve for future policy benefits.
The Company's reinsurance recoverables are summarized as follows:
 
As of December 31,
Reinsurance Recoverables
2017
2016
Reserve for future policy benefits and other policyholder funds and benefits payable
 
 
Sold businesses (MassMutual and Prudential)
$
19,448

$
19,363

Other reinsurers
1,337

1,362

Gross reinsurance recoverables
$
20,785

$
20,725

As of December 31, 2017, the Company has reinsurance recoverables from MassMutual and Prudential of $8.3 billion and $11.1 billion, respectively. As of December 31, 2016, the Company has reinsurance recoverables from MassMutual and Prudential of $8.6 billion and $10.8 billion, respectively. The Company's obligations to its direct policyholders that have been reinsured to MassMutual and Prudential are secured by invested assets held in trust. As of December 31, 2017, net of invested assets held in trust, the Company has no reinsurance-related concentrations of credit risk greater than 10% of the Company’s Consolidated Stockholder's Equity.
No allowance for uncollectible reinsurance is required as of December 31, 2017 and December 31, 2016. The allowance for uncollectible reinsurance reflects management’s best estimate of reinsurance cessions that may be uncollectible in the future due to reinsurers’ unwillingness or inability to pay. The Company analyzes recent developments in commutation activity between reinsurers and cedants, recent trends in arbitration and litigation outcomes in disputes between reinsurers and cedants and the overall credit quality of the Company’s reinsurers. Based on this analysis, the Company may adjust the allowance for uncollectible reinsurance or charge off reinsurer balances that are determined to be uncollectible. Where its contracts permit, the Company secures future claim obligations with various forms of collateral, including irrevocable letters of credit, secured trusts, funds held accounts and group-wide offsets.
Due to the inherent uncertainties as to collection and the length of time before reinsurance recoverables become due, it is possible that future adjustments to the Company’s reinsurance recoverables, net of the allowance, could be required, which could have a material adverse effect on the Company’s consolidated results of operations or cash flows in a particular quarter or annual period.
Insurance Revenues
The effect of reinsurance on earned premiums, fee income and other is as follows:
 
Year Ended December 31,
 
2017
2016
2015
Gross earned premiums, fee income and other
$
2,434

$
2,659

$
2,877

Reinsurance assumed
116

129

113

Reinsurance ceded
(1,539
)
(1,616
)
(1,801
)
Net earned premiums, fee income and other
$
1,011

$
1,172

$
1,189

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. Insurance recoveries on ceded reinsurance agreements, which reduce death and other benefits, were $1,150, $1,131, and $1,094 for the years ended December 31, 2017, 2016, and 2015, respectively. In addition, the Company has reinsured a portion of the risk associated with U.S. variable annuities and the associated GMDB and GMWB riders.

F- 47
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
5. Reinsurance (continued)

The Company also maintains a reinsurance agreement with Hartford Life and Accident Insurance Company ("HLA"), whereby the Company has ceded all of its group life and group accident and health risk business to HLA. Under this treaty, the Company ceded group life premium of $27, $40, and $64 for the years ended December 31, 2017, 2016, and 2015, respectively. The Company ceded accident and health premiums to HLA of $70, $86, and $129 for the years ended December 31, 2017, 2016, and 2015, respectively.
6. Deferred Policy Acquisition Costs
Changes in the DAC Balance
 
For the years ended December 31,
 
2017
2016
2015
Balance, beginning of period
$
463

$
542

$
521

Deferred costs
2

7

7

Amortization — DAC
(51
)
(40
)
(82
)
Amortization — Unlock benefit (charge), pre-tax
3

(74
)
13

Adjustments to unrealized gains and losses on securities AFS and other
(12
)
28

83

Balance, end of period
$
405

$
463

$
542


F- 48

HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
7. Reserves for Future Policy Benefits and Separate Account Liabilities


Changes in Reserves for Future Policy Benefits
 
Universal Life-Type Contracts
 
 
 
GMDB/GMWB [1]
Life Secondary Guarantees
Traditional Annuity and Other Contracts [2] [4]
Total
Liability balance as of January 1, 2017
$
786

$
2,627

$
10,587

$
14,000

Incurred [3]
185

313

777

1,275

Paid
(98
)
—

(787
)
(885
)
Change in unrealized investment gains and losses
—

—

92

92

Liability balance as of December 31, 2017
$
873

$
2,940

$
10,669

$
14,482

Reinsurance recoverable asset, as of January 1, 2017
$
432

$
2,627

$
1,697

$
4,756

Incurred [3]
113

313

108

534

Paid
(81
)
—

(63
)
(144
)
Reinsurance recoverable asset, as of December 31, 2017
$
464

$
2,940

$
1,742

$
5,146

 
Universal Life-Type Contracts
 
 
 
GMDB/GMWB [1]
Life Secondary Guarantees
Traditional Annuity and Other Contracts [2]
Total Future Policy Benefits
Liability balance as of January 1, 2016
$
863

$
2,313

$
10,674

$
13,850

Incurred [3]
37

314

671

1,022

Paid
(114
)
—

(785
)
(899
)
Change in unrealized investment gains and losses
—

—

27

27

Liability balance as of December 31, 2016
$
786

$
2,627

$
10,587

$
14,000

Reinsurance recoverable asset, as of January 1, 2016
$
523

$
2,313

$
1,823

$
4,659

Incurred [3]
—

314

(56
)
258

Paid
(91
)
—

(70
)
(161
)
Reinsurance recoverable asset, as of December 31, 2016
$
432

$
2,627

$
1,697

$
4,756

[1]
These liability balances include all GMDB benefits, plus the life-contingent portion of GMWB benefits in excess of the return of the GRB. GMWB benefits up to the GRB are embedded derivatives held at fair value and are excluded from these balances.
[2]
Represents life-contingent reserves for which the company is subject to insurance and investment risk.
[3]
Includes the portion of assessments established as additions to reserves as well as changes in estimates affecting the reserves.
[4]
Includes $285 of gross reserves and $288 of reinsurance recoverables that relates to business HLIC cedes to HLA.

F- 49
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
7. Reserves for Future Policy Benefits and Separate Account Liabilities (continued)

Account Value by GMDB/GMWB Type as of December 31, 2017
 
Account
Value
(“AV”) [8]
Net amount
at Risk
(“NAR”) [9]
Retained Net
Amount
at Risk
(“RNAR”) [9]
Weighted Average
Attained Age of
Annuitant
MAV [1]
 
 
 
 
MAV only
$
13,769

$
1,995

$
300

71
With 5% rollup [2]
1,152

131

41

72
With Earnings Protection Benefit Rider (“EPB”) [3]
3,498

541

82

71
With 5% rollup & EPB
477

108

23

73
Total MAV
18,896

2,775

446

 
Asset Protection Benefit ("APB") [4]
10,107

92

62

70
Lifetime Income Benefit ("LIB") – Death Benefit [5]
452

4

4

71
Reset [6] (5-7 years)
2,469

6

5

70
Return of Premium ("ROP") [7] /Other
8,899

52

50

71
Subtotal Variable Annuity with GMDB/GMWB [10]
$
40,823

$
2,929

$
567

71
Less: General Account Value with GMDB/GMWB
3,615

 
 
 
Subtotal Separate Account Liabilities with GMDB
37,208

 
 
 
Separate Account Liabilities without GMDB
78,626

 
 
 
Total Separate Account Liabilities
$
115,834

 
 
 
[1]
MAV GMDB is the greatest of current AV, net premiums paid and the highest AV on any anniversary before age 80 years (adjusted for withdrawals).
[2]
Rollup GMDB is the greatest of the MAV, current AV, net premium paid and premiums (adjusted for withdrawals) accumulated at generally 5% simple interest up to the earlier of age 80 years or 100% of adjusted premiums.
[3]
EPB GMDB is the greatest of the MAV, current AV, or contract value plus a percentage of the contract’s growth. The contract’s growth is AV less premiums net of withdrawals, subject to a cap of 200% of premiums net withdrawals.
[4]
APB GMDB is the greater of current AV or MAV, not to exceed current AV plus 25% times the greater of net premiums and MAV (each adjusted for premiums in the past 12 months).
[5]
LIB GMDB is the greatest of current AV; net premiums paid; or, for certain contracts, a benefit amount generally based on market performance that ratchets over time.
[6]
Reset GMDB is the greatest of current AV, net premiums paid and the most recent five to seven year anniversary AV before age 80 years (adjusted for withdrawals).
[7]
ROP GMDB is the greater of current AV and net premiums paid.
[8]
AV includes the contract holder’s investment in the separate account and the general account.
[9]
NAR is defined as the guaranteed minimum death benefit in excess of the current AV. RNAR represents NAR reduced for reinsurance. NAR and RNAR are highly sensitive to equity market movements and increase when equity markets decline.
[10]
Some variable annuity contracts with GMDB also have a life-contingent GMWB that may provide for benefits in excess of the return of the GRB. Such contracts included in this amount have $6.2 billion of total account value and weighted average attained age of 73 years. There is no NAR or retained NAR related to these contracts. Includes $1.9 billion of account value for contracts that had a GMDB at issue but no longer have a GMDB due to certain elections made by policyholders or their beneficiaries.
Account Balance Breakdown of Variable Separate Account Investments for Contracts with Guarantees
Asset type
December 31, 2017
December 31, 2016
Equity securities (including mutual funds)
$
34,496

$
33,880

Cash and cash equivalents
2,712

3,045

Total
$
37,208

$
36,925

As of December 31, 2017 and December 31, 2016, approximately 15% and 16% of the equity securities (including mutual funds), in the preceding table were funds invested in fixed income securities and approximately 85% and 84% were funds invested in equity securities.
For further information on guaranteed living benefits that are accounted for at fair value, such as GMWB, see Note 2 - Fair Value Measurements of Notes to Consolidated Financial Statements.

F- 50

HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
8. Debt


Collateralized Advances
The Company is a member of the Federal Home Loan Bank of Boston (“FHLBB”). Membership allows the Company access to collateralized advances, which may be used to support various spread-based business and enhance liquidity management. FHLBB membership requires the company to own member stock and advances require the purchase of activity stock. The amount of advances that can be taken are dependent on the asset types pledged to secure the advances. The CTDOI will permit the Company to pledge up to $0.9 billion in qualifying assets to secure FHLBB advances for 2018. The pledge limit is recalculated annually based on statutory admitted assets and capital and surplus. The Company would need to seek the prior approval of the CTDOI in order to exceed these limits. As of December 31, 2017, the Company had no advances outstanding under the FHLBB facility.

F- 51

HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
9. Income Taxes


The provision (benefit) for income taxes consists of the following:
 
For the years ended December 31,
 
2017
2016
2015
Income Tax Expense (Benefit)
 
 
 
Current  - U.S. Federal
$
4

$
2

$
36

Deferred - U.S. Federal
418

72

(6
)
 Total income tax expense
$
422

$
74

$
30

Deferred tax assets and liabilities on the consolidated balance sheets represent the tax consequences of differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets (liabilities) include the following:
 
As of December 31,
Deferred Tax Assets
2017
2016
Tax basis deferred policy acquisition costs
$
60

$
101

Unearned premium reserve and other underwriting related reserves
4

6

Financial statement deferred policy acquisition costs and reserves
39

32

Investment-related items
155

135

Insurance product derivatives
12

79

Net operating loss carryover
681

1,155

Alternative minimum tax credit [1]
—

232

Foreign tax credit carryover
23

40

Other
29

191

Total Deferred Tax Assets
1,003

1,971

Deferred Tax Liabilities
 
 
Net unrealized gain on investments
(398
)
(480
)
Employee benefits
(49
)
(54
)
Total Deferred Tax Liabilities
(447
)
(534
)
Net Deferred Tax Assets
$
556

$
1,437

[1] Amount was reclassified to current tax receivable within other assets of the consolidated balance sheets.
On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (“Tax Reform”). Tax Reform establishes new tax laws that will affect 2018, including, but not limited to, (1) reduction of the U.S. federal corporate income tax rate from 35% to 21%; (2) elimination of the corporate alternative minimum tax (AMT) and changing how existing AMT credits can be realized, (3) limitations on the deductibility of certain executive compensation, (4) changes to the discounting of statutory reserves for tax purposes, (5) modifications to the dividends received deduction, and (6) limitations on net operating losses (NOLs) generated after December 31, 2017 though there is no impact to the Company’s current NOL carryforwards.
In connection with our initial analysis of the impact of Tax Reform, the Company recorded a provisional net income tax expense of $396 in the period ending December 31, 2017. This net expense consists of a $379 reduction of The Company’s deferred tax assets primarily due to the reduction in the U.S. federal corporate income tax rate and a $17 sequestration fee payable associated with refundable AMT credits. Net of the sequestration fee payable, the Company's AMT credits of $234 have been reclassified to a current income tax receivable within other assets in the accompanying consolidated balance sheets. Tax reform allows for the refund of AMT credits over time but no later than 2022.
For components where we have made provisional estimates of the impact of Tax Reform, particularly the estimated amount of sequestration fee payable, adjustments to income tax expense, if any, will be made in the period the adjustments become known in 2018.
Under a separate entity approach, no current tax benefits would have been required to be recorded to equity in 2017, 2016, or 2015.
The Company believes it is more likely than not that all deferred tax assets will be fully realized. In assessing the need for a valuation allowance, management considered future taxable temporary difference reversals, future taxable income exclusive of reversing temporary differences and carryovers, taxable income in open carry back years and other tax planning strategies. From time to time, tax planning strategies could include holding a portion of debt securities with market value losses until recovery, making investments which have specific tax characteristics and business considerations such as asset-liability matching.

F- 52
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
9. Income Taxes (continued)

Net deferred income taxes include the future tax benefits associated with the net operating loss carryover and foreign tax credit carryover as follows:
Net Operating Loss Carryover
As of December 31, 2017 and 2016, the net deferred tax asset included the expected tax benefit attributable to net operating losses of $3,243 and $3,301, respectively. If unutilized, $3,240 of the losses expire from 2023-2036. Utilization of these loss carryovers is dependent upon the generation of sufficient future taxable income.
Most of the net operating loss carryover originated from the Company's U.S. annuity business, including from the hedging program. Given the continued runoff of the U.S. fixed and variable annuity business, the exposure to taxable losses is significantly lessened. Accordingly, given the expected future ultimate parent's consolidated group earnings, the Company believes sufficient taxable income will be generated in the future to utilize its net operating loss carryover. Although the Company believes there will be sufficient future taxable income to fully recover the remainder of the loss carryover, the Company's estimate of the likely realization may change over time. As a condition of the close, in connection with the pending sale of HLI and subsidiaries, the Company will forego approximately $460 of deferred tax assets associated with net operating loss carryovers and foreign tax credits that will be retained by The Hartford. These deferred tax assets continue to be reflected as an asset in the accompanying financial statements as non-recoverability is contingent on the closing of the sale of the business.
Foreign Tax Credit Carryover
As of December 31, 2017 and 2016, the net deferred tax asset included the expected tax benefit attributable to foreign tax credit carryover of $23 and $40 respectively. The foreign tax credit carryovers expire from 2023 to 2024. These credits are available to offset regular federal income taxes from future taxable income and although the Company believes there will be sufficient future regular federal taxable income, there can be no certainty that future events will not affect the ability to utilize the credits. Additionally, the use of the foreign tax credits generally depends on the generation of sufficient taxable income to first utilize all of the U.S. net operating loss carryover. However, the Company has identified and purchased certain investments which allow for utilization of the foreign tax credits without first using the net operating loss carryover. Consequently, the Company believes it is more likely than not the foreign tax credit carryover will be fully realized. Accordingly, no valuation allowance has been provided.
Alternative Minimum Tax Credit and Foreign Tax Credit Carryover
As noted above, because AMT credits are refundable the Company reflected AMT credits, net of a sequestration fee payable, as a current tax receivable at its undiscounted amount and they are no longer included as deferred tax assets.
Including AMT credits, the Company has a current income tax receivable of $341 and $64 as of December 31, 2017 and 2016, respectively.
The Company or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. The federal audit of the years 2012 and 2013 was completed as of March 31, 2017 with no additional adjustments. Management believes that adequate provision has been made in the financial statements for any potential assessments that may result from tax examinations and other tax-related matters for all open tax years.
The Company’s unrecognized tax benefits are settled with the parent consistent with the terms of a tax sharing agreement. The Company’s effective tax rate for the year ended December 31, 2017 reflects a $3 net increase in the provision for income taxes from intercompany tax settlements.

F- 53
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
9. Income Taxes (continued)

A reconciliation of the tax provision at the U.S. Federal statutory rate to the provision (benefit) for income taxes is as follows:
 
For the years ended December 31,
 
2017
2016
2015
Tax provision at the U.S. federal statutory rate
$
132

$
125

$
186

Dividends received deduction ("DRD")
(102
)
(76
)
(152
)
Foreign related investments
(7
)
(7
)
(3
)
IRS audit adjustments
—

31

—

Tax Reform
396

—

—

Other
3

1

(1
)
Provision for income taxes
$
422

$
74

$
30

The separate account DRD is estimated for the current year using information from the most recent return, adjusted for current year equity market performance and other appropriate factors, including estimated levels of corporate dividend payments and level of policy owner equity account balances. The actual current year DRD can vary from estimates based on, but not limited to, changes in eligible dividends received in the mutual funds, amounts of distributions from these mutual funds, amounts of short-term capital gains at the mutual fund level and the Company’s taxable income before the DRD. The Company evaluates its DRD computations on a quarterly basis.

F- 54

HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
10. Commitments and Contingencies



Contingencies Relating to Corporate Litigation and Regulatory Matters
Management evaluates each contingent matter separately. A loss is recorded if probable and reasonably estimable. Management establishes reserves for these contingencies at its “best estimate,” or, if no one number within the range of possible losses is more probable than any other, the Company records an estimated liability at the low end of the range of losses.
Litigation
The Company is involved in claims litigation arising in the ordinary course of business with respect to life, disability and accidental death and dismemberment insurance policies and with respect to annuity contracts. The Company accounts for such activity through the establishment of reserves for future policy benefits. Management expects that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses and costs of defense, will not be material to the consolidated financial condition, results of operations or cash flows of the Company.
The Company is also involved in other kinds of legal actions, some of which assert claims for substantial amounts. Such actions have alleged, for example, bad faith in the handling of insurance claims and improper sales practices in connection with the sale of insurance and investment products. Some of these actions also seek punitive damages. Management expects that the ultimate liability, if any, with respect to such lawsuits, after consideration of provisions made for estimated losses, will not be material to the consolidated financial condition of the Company. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows in particular quarterly or annual periods.

Lease Commitments
The rent paid to Hartford Fire Insurance Company ("Hartford Fire") for operating leases was $2, $2 and $9 for the years ended December 31, 2017, 2016 and 2015, respectively.
 
Operating Leases
2018
$
6

2019
5

2020
4

2021
3

2022
2

Thereafter
8

Total minimum lease payments
$
28

Unfunded Commitments
As of December 31, 2017, the Company has outstanding commitments totaling $787, of which $683 is committed to fund limited partnership and other alternative investments, which may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. Additionally, $23 of the outstanding commitments relate to various funding obligations associated with private placement securities. The remaining outstanding commitments of $81 relate to mortgage loans the Company is expecting to fund in the first half of 2018.
Guaranty Fund and Other Insurance-related Assessments
In all states, insurers licensed to transact certain classes of insurance are required to become members of a guaranty fund. In most states, in the event of the insolvency of an insurer writing any such class of insurance in the state, members of the funds are assessed to pay certain claims of the insolvent insurer. A particular state’s fund assesses its members based on their respective written premiums in the state for the classes of insurance in which the insolvent insurer was engaged. Assessments are generally limited for any year to one or two percent of premiums written per year depending on the state.
Liabilities for guaranty funds and other insurance-related assessments are accrued when an assessment is probable, when it can be reasonably estimated, and when the event obligating the Company to pay an imposed or probable assessment has occurred. Liabilities for guaranty funds and other insurance-related assessments are not discounted and are included as part of other liabilities in the Consolidated Balance Sheets. As of December 31, 2017 and 2016 the liability balance was $8. As of December 31, 2017 and 2016 amounts related to premium tax offsets of $11 and $15, respectively, were included in other assets.

F- 55
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
10. Commitments and Contingencies (continued)

Derivative Commitments
Certain of the Company’s derivative agreements contain provisions that are tied to the financial strength ratings, as set by nationally recognized statistical agencies, of the individual legal entity that entered into the derivative agreement. If the legal entity’s financial strength were to fall below certain ratings, the counterparties to the derivative agreements could demand immediate and ongoing full collateralization and in certain instances enable the counterparties to terminate the agreements and demand immediate settlement of all outstanding derivative positions traded under each impacted bilateral agreement. The settlement amount is determined by netting the derivative positions transacted under each agreement. If the termination rights were to be exercised by the counterparties, it could impact the legal entity’s ability to conduct hedging activities by increasing the associated costs and decreasing the willingness of counterparties to transact with the legal entity. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a net liability position as of December 31, 2017, was $692. Of this $692 the legal entities have posted collateral of $847, which is inclusive of initial margin requirements, in the normal course of business. In addition, the Company has posted collateral of $31 associated with a customized GMWB derivative. Based on derivative market values as of December 31, 2017, a downgrade of one or two levels below the current financial strength ratings by either Moody’s or S&P would not require additional assets to be posted as collateral. These collateral amounts could change as derivative market values change, as a result of changes in our hedging activities or to the extent changes in contractual terms are negotiated. The nature of the collateral that we post, when required, would be primarily in the form of U.S. Treasury bills, U.S. Treasury notes and government agency securities.
On October 23, 2017, Moody’s lowered its counterparty credit and insurer financial strength ratings on Hartford Life and Annuity Insurance Company and Hartford Life Insurance Company to Baa3. Given this downgrade action, termination rating triggers in two derivative counterparty relationships in which the Company has open derivative contracts were impacted. The Company has successfully re-negotiated the rating triggers with these counterparties. Accordingly, the Company does not expect the current hedging programs to be adversely impacted by the announcement of the downgrade of Hartford Life and Annuity Insurance Company and Hartford Life Insurance Company. In addition, as a result of the downgrade of Hartford Life and Annuity Insurance Company, the Company is required to post an additional $9 of collateral related to a single counterparty relationship.

F- 56

HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
11. Transactions with Affiliates


Parent Company Transactions
Transactions of the Company with Hartford Fire Insurance Company ("Hartford Fire"), Hartford Holdings Inc. ("HHI") and its affiliates relate principally to tax settlements, reinsurance, insurance coverage, rental and service fees, payment of dividends and capital contributions, and employee costs. In addition, the Company has issued structured settlement contracts to fund claims settlements of property casualty insurance companies and self -insured entities. In many cases, the structured settlement contracts are to fund claim settlements of the Company's affiliated property and casualty companies whereby these property and casualty companies transferred funds to another affiliate of the Company to purchase the contracts. The Company had $0 and $53, respectively, of reserves for claim annuities purchased by affiliated entities as of December 31, 2017 and December 31, 2016, respectively. Reserves for annuities issued by the Company to The Hartford's property and casualty subsidiaries to fund structured settlement payments where the claimant has not released The Hartford's property and casualty subsidiaries of their primary obligation totaled $682 and $711 as of December 31, 2017 and 2016, respectively.
Substantially all general insurance expenses related to the Company are initially paid by The Hartford. Expenses are allocated to the Company using specific identification if available, or other applicable methods, that would include a blend of revenue, expense and capital.
The Company issued a guarantee to retirees and vested terminated employees of The Hartford Retirement Plan for U.S. Employees (the "Plan”) who retired or terminated prior to January 1, 2004 (the Retirees"). The Plan is sponsored by The Hartford. The guarantee is a commitment to pay all accrued benefits which the Retiree or the Retiree’s designated beneficiary is entitled to receive under the Plan in the event the Plan assets are insufficient to fund those benefits and The Hartford is unable to provide sufficient assets to fund those benefits. In June 2017, The Hartford purchased a group annuity contract with The Prudential Insurance Company of America and settled a portion of The Hartford's benefit obligation, which included, among others, the Retirees. With the purchase of this group annuity contract, The Hartford has transferred its responsibility for the Retirees' pension benefits to The Prudential Insurance Company of America, thereby causing the Plan to have no further liability with respect to any and all of the benefits of the Retirees. Accordingly, the discharge of the underlying pension obligation has extinguished the Company's guarantee.
In 1990, Hartford Fire guaranteed the obligations of the Company with respect to life, accident and health insurance and annuity contracts issued after January 1, 1990. The guarantee was issued to provide an increased level of security to potential purchasers of the Company's products. Although the guarantee was terminated in 1997, it still covers policies that were issued from 1990 to 1997. As of December 31, 2017 and December 31, 2016, no recoverables have been recorded for this guarantee, as the Company was able to meet these policyholder obligations.
Reinsurance Ceded to Affiliates
The Company maintains a reinsurance agreement with Hartford Life and Accident Insurance Company ("HLA") whereby the Company cedes both group life and group accident and health risk. Under this agreement, the Company ceded group life premium of $27, $40, and $64 for the years ended December 31, 2017, 2016, and 2015, respectively. The Company ceded accident and health premiums to HLA of $70, $86, and $129 for the years ended December 31, 2017, 2016, and 2015, respectively.
Effective August 1, 2016, the Company recaptured a reinsurance agreement with HLA, a wholly owned subsidiary of Hartford Life, Inc. whereby the Company had ceded a single group annuity contract to HLA under a 100% quota share agreement. As a result of this recapture, the Company received a return of premium of $90 and increased reserves by $63 resulting in a recognized pre-tax gain of approximately $27.

F- 57

HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
12. Statutory Results


The domestic insurance subsidiaries of the Company prepare their statutory financial statements in conformity with statutory accounting practices prescribed or permitted by the applicable state insurance department which vary materially from U.S. GAAP. Prescribed statutory accounting practices include publications of the National Association of Insurance Commissioners (“NAIC”), as well as state laws, regulations and general administrative rules. The differences between statutory financial statements and financial statements prepared in accordance with U.S. GAAP vary between domestic and foreign jurisdictions. The principal differences are that statutory financial statements do not reflect deferred policy acquisition costs and limit deferred income taxes, predominately use interest rate and mortality assumptions prescribed by the NAIC for life benefit reserves, generally carry bonds at amortized cost and present reinsurance assets and liabilities net of reinsurance. For reporting purposes, statutory capital and surplus is referred to collectively as "statutory capital".
Statutory net income and statutory capital are as follows:
 
For the years ended December 31,
 
2017
2016
2015
Combined statutory net income
$
369

$
349

$
371

Statutory capital
$
3,552

$
4,398

$
4,939

Statutory accounting practices do not consolidate the net income (loss) of subsidiaries that report under U.S. GAAP. The combined statutory net income above represents the total statutory net income of the Company, and its other insurance subsidiaries.
Regulatory Capital Requirements
The Company's U.S. insurance companies' states of domicile impose risk-based capital (“RBC”) requirements. The requirements provide a means of measuring the minimum amount of statutory capital appropriate for an insurance company to support its overall business operations based on its size and risk profile. Regulatory compliance is determined by a ratio of a company's total adjusted capital (“TAC”) to its authorized control level RBC (“ACL RBC”). Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. The minimum level of TAC before corrective action commences (“Company Action Level”) is two times the ACL RBC. The adequacy of a company's capital is determined by the ratio of a company's TAC to its Company Action Level, known as the "RBC ratio". The Company and all of its operating insurance subsidiaries had RBC ratios in excess of the minimum levels required by the applicable insurance regulations. The RBC ratios for the Company and its principal life insurance operating subsidiaries were all in excess of 300% of their Company Action Levels as of December 31, 2017 and 2016. The reporting of RBC ratios is not intended for the purpose of ranking any insurance company, or for use in connection with any marketing, advertising or promotional activities.
Dividends
Dividends to the Company from its insurance subsidiaries are restricted by insurance regulation. The payment of dividends by Connecticut-domiciled insurers is limited under the insurance holding company laws of Connecticut. These laws require notice to and approval by the state insurance commissioner for the declaration or payment of any dividend, which, together with other dividends or distributions made within the preceding twelve months, exceeds the greater of (i) 10% of the insurer’s policyholder surplus as of December 31 of the preceding year or (ii) net income (or net gain from operations, if such company is a life insurance company) for the twelve-month period ending on the thirty-first day of December last preceding, in each case determined under statutory insurance accounting principles. In addition, if any dividend of a domiciled insurer exceeds the insurer’s earned surplus or certain other thresholds as calculated under applicable state insurance law, the dividend requires the prior approval of the domestic regulator. In addition to statutory limitations on paying dividends, the Company also takes other items into consideration when determining dividends from subsidiaries. These considerations include, but are not limited to, expected earnings and capitalization of the subsidiary, regulatory capital requirements and liquidity requirements of the individual operating company.
In 2017, HLIC paid dividends of $1.4 billion of which $800 was a return of capital used by The Hartford to help fund the HLA acquisition of the Aetna's U.S. group life and disability business. $550 of the $800 return of capital was funded through an extraordinary dividend from HLAI to the Company and approved by the CTDOI.
On December 4, 2017, The Hartford announced it had entered into a definitive agreement to sell the company's parent, Hartford Life Inc., to a group of investors led by Cornell capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP, Global Atlantic Financial Group, Pine Brook and J. Safara Group. Prior to the expected close in 2018, the Company anticipates paying an additional $300 in dividends to its parent, subject to approval by the CTDOI. The sale is anticipated to close by June 30, 2018, subject to regulatory approval and other closing conditions.

F- 58

HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
13. Changes in and Reclassifications From Accumulated Other Comprehensive Income


Changes in AOCI, Net of Tax for the Year Ended December 31, 2017
 
Changes in
 
Net Unrealized Gain on Securities
Net Gain on Cash Flow Hedging Instruments
Foreign Currency Translation Adjustments
AOCI,
net of tax
Beginning balance
$
693

$
32

$
(3
)
$
722

OCI before reclassifications
428

(5
)
—

423

Amounts reclassified from AOCI
(99
)
(23
)
—

(122
)
OCI, net of tax
329

(28
)
—

301

Ending balance
$
1,022

$
4

$
(3
)
$
1,023

Changes in AOCI, Net of Tax for the Year Ended December 31, 2016
 
Changes in
 
Net Unrealized Gain on Securities
Net Gain on Cash Flow Hedging Instruments
Foreign Currency Translation Adjustments
AOCI,
net of tax
Beginning balance
$
539

$
57

$
(3
)
$
593

OCI before reclassifications
212

(9
)
—

203

Amounts reclassified from AOCI
(58
)
(16
)
—

(74
)
OCI, net of tax
154

(25
)
—

129

Ending balance
$
693

$
32

$
(3
)
$
722

Changes in AOCI, Net of Tax for the Year Ended December 31, 2015
 
Changes in
 
Net Unrealized Gain on Securities
Net Gain on Cash Flow Hedging Instruments
Foreign Currency Translation Adjustments
AOCI,
net of tax
Beginning balance
$
1,154

$
70

$
(3
)
$
1,221

OCI before reclassifications
(633
)
2

—

(631
)
Amounts reclassified from AOCI
18

(15
)
—

3

OCI, net of tax
(615
)
(13
)
—

(628
)
Ending balance
$
539

$
57

$
(3
)
$
593


F- 59
HARTFORD LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
13. Changes In and Reclassifications From Accumulated Other Comprehensive Income (continued)

Reclassification from AOCI
 
For the Year Ended December 31, 2017
For the Year Ended December 31, 2016
For the Year Ended December 31, 2015
Affected Line Item in the Consolidated Statement of Operations
Net Unrealized Gain on Securities
 
 
 
 
Available-for-sale securities
$
153

$
89

$
(27
)
Net realized capital losses
 
153

89

(27
)
Income before income taxes
 
54

31

(9
)
Income tax expense
 
$
99

$
58

$
(18
)
Net (loss) income
Net Gains on Cash-Flow Hedging Instruments
 
 
 
 
Interest rate swaps
$
(1
)
$
1

$
(1
)
Net realized capital losses
Interest rate swaps
26

25

33

Net investment income
Foreign currency swaps
11

(2
)
(9
)
Net realized capital losses
 
36

24

23

Income before income taxes
 
13

8

8

Income tax expense
 
$
23

$
16

$
15

Net (loss) income
Total amounts reclassified from AOCI
$
122

$
74

$
(3
)
Net (loss) income
14. Quarterly Results (Unaudited)
 
Three months ended
 
March 31,
June 30,
September 30,
December 31,
 
2017
2016
2017
2016
2017
2016
2017
2016
Total revenues
$
527

$
487

$
595

$
622

$
533

$
702

$
577

$
571

Total benefits, losses and expenses
$
441

$
478

$
450

$
474

$
462

$
610

$
503

$
464

Net income
$
75

$
28

$
112

$
118

$
83

$
79

$
(316
)
$
57


F- 60
 


PART C
OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(a)
All financial statements are included in Part A and Part B of the Registration Statement.
(b)
(1)
Resolution of the Board of Directors of Hartford Life Insurance Company ("Hartford") authorizing the establishment of the Separate Account. (1)
 
(2)
Not applicable.
 
(3)
(a) Amended and Restated Principal Underwriter Agreement. (2)
 
(3)
(b) Form of Dealer Agreement. (3)
 
(4)
Form of Individual Flexible Premium Variable Annuity Contract. (4)
 
(4)
(b) MAV / MAV Plus (5)
 
(4)
(c) Principal First (5)
 
(4)
(d) Principal First Preferred (5)
 
(4)
(e) Lifetime Income Foundation Rider (Single) (5)
 
(4)
(f) Lifetime Income Foundation Rider (Joint Life / Single) (5)
 
(4)
(g) Lifetime Income Builder II Rider (Single) (5)
 
(4)
(h) Lifetime Income Builder II Rider (Joint Life / Spousal) (5)
 
(4)
(i) Unified Benefit Rider (5)
 
(4)
(j) The Hartford's Lifetime Income Builder Selects Rider (Single) (5)
 
(4)
(k) The Hartford's Lifetime Income Builder Selects Rider (Joint Life/Spousal) (5)
 
(4)
(l) The Hartford's Lifetime Income Builder Portfolios Rider (Single) (5)
 
(4)
(m) The Hartford's Lifetime Income Builder Portfolios Rider (Joint Life/Spousal) (5)
 
(4)
(n) Amendatory Rider -- Voluntary Program to Surrender Contract and In Force Riders And Receive Enhanced Surrender Value (6)
 
(4)
(o) Amendatory Rider - Annuity Commencement Date Deferral Option (7)
 
(5)
Form of Application. (4)
 
(6)
(a) Articles of Incorporation of Talcott Resolution.
 
(6)
(b) Amended and Restated Bylaws of Talcott Resolution.
 
(7)
Reinsurance Agreements and Amendments
(a) Transamerica Financial Life Insurance Company(5)
(b) ACE Tempest Life Reinsurance Ltd. (October 1, 2002)(5)
(c) ACE Tempest Life Reinsurance Ltd. (June 2, 2003)(5)
(d) ACE Tempest Life Reinsurance Ltd. (April 1, 2004)(5)
(e) Swiss Re Life & Health America, Inc. (HL)(5)
(f) Swiss Re Life & Health America, Inc. (HLA)(5)
 
(8)
Fund Participation Agreements and Amendments
(a) AIM Variable Insurance Funds (5)
(b) American Funds Insurance Series (5)
(c) Franklin Templeton Variable Insurance Products Trust (5)
(d) Hartford Series Fund, Inc.(5)
(e) MFS Variable Insurance Trust (5)
(f) Guarantee Agreement, between Hartford Fire Insurance Company and Hartford Life and Accident Insurance Company and its wholly owned subsidiary, Hartford Life Insurance Company, dated as of January 1, 1990. (8)
(g) Guarantee between Hartford Life Insurance Company and ITT Hartford International Life Reassurance Corporation, dated August 29, 1994 and effective as of May 1, 1993. (8)
(h) Guarantee Agreement, between Hartford Life Insurance Company and ITT Comprehensive Employee Benefit Service Company, its wholly owned subsidiary, dated as of April 1, 1997. (8)
(i) Guarantee Agreement, between Hartford Life Insurance Company and ITT Hartford Life and Annuity Insurance Company, dated as of May 23, 1997. (8)
(j) Capital Maintenance Agreement by and between Hartford Life Insurance Company and Hartford Life, Inc. dated March 12, 2001. (8)



 
(9)
Opinion and Consent of Lisa Proch, Assistant General Counsel
 
(10)
Consent of Deloitte & Touche LLP, Independent Registered Public Accounting Firm
 
(11)
No financial Statements are omitted.
 
(12)
Not applicable.
 
(99)
Copy of Power of Attorney
(1)
Incorporated by reference to Item 24(b)(1) in Pre-Effective Amendment No. 1, to the Registration Statement File No. 333-68463, dated April 15, 1999.
(2)
Incorporated by reference to Item 24(b)(3)(a) in Post-Effective Amendment No. 3, to the Registration Statement, File No. 333-148564, filed on February 9, 2009.
(3)
Incorporated by reference to Item 24(b)(3)(b) in Post-Effective Amendment No. 3, to the Registration Statement File No. 33-73570, dated April 29, 1996.
(4)
Incorporated by reference to Item 24(b)(4) and Item 24(b)(5), respectively, Pre-Effective Amendment No. 1, to the Registration Statement File No. 333-101923, filed on April 7, 2003.
(5)
Incorporated by reference to Items 24(b)(4)(b-m), Items 24(b)(7)(a-f), and Items 24(b)(8)(a-f), respectively, Pre-Effective Amendment No. 1, to the Registration Statement File No. 333-101942, filed on November 1, 2012.




(6)
Incorporated by reference to Item 24(b)( 4)(n) in Post-Effective Amendment No. 19, to the Registration Statement File No. 333-101942, filed on December 28, 2012.
(7)
Incorporated by reference to Item 24(b)(4)(o) in Post-Effective Amendment No. 24, to the Registration Statement File No. 333-101942, filed on November 15, 2016.
(8)
Incorporated by reference to Items 24(b)(8)(f-fj, respectively, in Post-Effective Amendment No. 10, to the Registration Statement File No. 333-148564 filed on May 3, 2010.
ITEM 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
NAME
POSITION
Ellen T. Below
Vice President and Chief Communications Officer
Jeremy Billiel
Assistant Vice President and Treasurer
John B. Brady
Vice President and Chief Actuary
Richard J Carbone (1)
Director
Christopher S. Conner
Assistant Vice President, Chief Compliance Officer of Separate Accounts, AML Compliance Officer and Sanctions Compliance Officer
Henry Cornell (2)
Director
Robert A. Cornell
Vice President and Actuary
Christopher Cramer
Vice President and Director of Tax
Christopher J. Dagnault (3)
Vice President
Gilles M. Dellaert (4)
Director
George Eknaian
Senior Vice President and Chief Risk Officer
Oliver M. Goldstein (5)
Director
Michael R. Hazel
Vice President and Controller
Donna R. Jarvis
Vice President and Actuary
Brion S. Johnson (6)
Director
Diane Krajewski
Vice President and Chief Human Resources Officer
Craig D. Morrow
Vice President and Appointed Actuary
Emily R. Pollack (2)
Director
Matthew J. Poznar
Senior Vice President and Chief Investment Officer
Lisa M. Proch
Senior Vice President, General Counsel and Chief Compliance Officer
Michael S. Rubinoff (7)
Director
Peter F. Sannizzaro
President and Chief Operating Officer
David I. Schamis (8)
Director
Robert Siracusa
Vice President and Chief Financial Officer
Leslie T. Soler
Assistant Vice President and Corporate Secretary
Samir Srivastava
Vice President and Chief Technology Officer
Robert Stein (9)
Director
Heath L. Watkin (10)
Director




Unless otherwise indicated, the principal business address of each of the above individuals is 1 Griffin Road North, Windsor, CT 06095.
(1)
Address: 469 Edinboro Rd., Staten Island, NY 10306
(2)
Address: Cornell Capital LLP, 499 Park Ave., 21st Floor, New York, NY 10022
(3)
Address: 500 Bielenberg Drive, Woodbury, MN 55125
(4)
Address: Global Atlantic Financial Group, 4 World Trade Center, 150 Greenwich St., 51st Floor, New York, NY 10007
(5)
Address: Pine Brook, One Grand Central Place, 60 East 42nd St., 50th Floor, New York, NY 10165
(6)
Address: The Hartford, 690 Asylum Ave., Hartford, CT 06155
(7)
Address: Safra, 546 5th Ave., 3rd Floor, New York., NY 10036
(8)
Address: Atlas Merchant Capital, 375 Park Ave., 21st Floor, New York, NY 10152
(9)
Address: 39 West 94th St., New York, NY 10025
(10)
Address: TRB Advisors LP, 767 Fifth Ave., 12th Floor, New York, NY 10153
ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR REGISTRANT.
Filed herein as Exhibit 99.26.





ITEM 27. NUMBER OF CONTRACT OWNERS
As of April 30, 2018, there were 22,758 owners of qualified contracts and 18,605 owners of non-qualified contracts.
ITEM 28. INDEMNIFICATION
Section 33-776 of the Connecticut General Statutes states that: "a corporation may provide indemnification of, or advance expenses to, a director, officer, employee or agent only as permitted by sections 33-770 to 33-779, inclusive."
Provision is made that the Corporation, to the fullest extent permissible by applicable law as then in effect, shall indemnify any individual who is a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative, arbitrative or investigative, and whether formal or informal (each, a "Proceeding") because such individual is or was (i) a Director, or (ii) an officer or employee of the Corporation (for purposes of the by laws, each an "Officer"), against obligations to pay judgments, settlements, penalties, fines or reasonable expenses (including counsel fees) incurred in a Proceeding if such Director or Officer: (l)(A) conducted him or herself in good faith; (B) reasonably believed (i) in the case of conduct in such person's official capacity, which shall include service at the request of the Corporation as a director, officer or fiduciary of a Covered Entity (as defined below), that his or her conduct was in the best interests of the Corporation; and (ii) in all other cases, that his or her conduct was at least not opposed to the best interests of the Corporation; and (C) in the case of any criminal proceeding, such person had no reasonable cause to believe his or her conduct was unlawful; or (2) engaged in conduct for which broader indemnification has been made permissible or obligatory under a provision of the Corporation's Certificate, in each case, as determined in accordance with the procedures set forth in the by laws. For purposes of the by laws, a "Covered Entity" shall mean another corporation, partnership, joint venture, trust or other enterprise (including, without limitation, any employee benefit plan) in respect of which such person is serving at the request of the Corporation as a director, officer or fiduciary.
Insofar as indemnification for liability arising under the Securities Act of 1933 (the "Act") may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
ITEM 29. PRINCIPAL UNDERWRITERS
(a) TDC acts as principal underwriter for the following investment companies:

Talcott Resolution Life Insurance Company - Separate Account One
Talcott Resolution Life Insurance Company - Separate Account Two
Talcott Resolution Life Insurance Company - Separate Account Two (DC Variable Account I)
Talcott Resolution Life Insurance Company - Separate Account Two (DC Variable Account II)
Talcott Resolution Life Insurance Company - Separate Account Two (QP Variable Account)
Talcott Resolution Life Insurance Company - Separate Account Two (Variable Account "A")
Talcott Resolution Life Insurance Company - Separate Account Two (NQ Variable Account)
Talcott Resolution Life Insurance Company - Separate Account Ten
Talcott Resolution Life Insurance Company - Separate Account Three
Talcott Resolution Life Insurance Company - Separate Account Five
Talcott Resolution Life Insurance Company - Separate Account Seven
Talcott Resolution Life Insurance Company - Separate Account Eleven
Talcott Resolution Life Insurance Company - Separate Account Twelve
Talcott Resolution Life Insurance Company - Separate Account VL I
Talcott Resolution Life Insurance Company - Separate Account VL II
Talcott Resolution Life and Annuity Insurance Company - Separate Account One
Talcott Resolution Life and Annuity Insurance Company - Separate Account Ten
Talcott Resolution Life and Annuity Insurance Company - Separate Account Three
Talcott Resolution Life and Annuity Insurance Company - Separate Account Five
Talcott Resolution Life and Annuity Insurance Company - Separate Account Six
Talcott Resolution Life and Annuity Insurance Company - Separate Account Seven
Talcott Resolution Life and Annuity Insurance Company - Separate Account VLI
Talcott Resolution Life and Annuity Insurance Company - Separate Account VLII
American Maturity Life Insurance Company Separate Account AMLVA
American Maturity Life Insurance Company - Separate Account One
ICMG Registered Variable Life Separate Account A
ICMG Registered Variable Life Separate Account One
Nutmeg Life Insurance Company - Separate Account One
Union Security Insurance Company - Variable Account C
Union Security Insurance Company - Variable Account D
Union Security Life Insurance Company - Separate Account A




(b) Directors and Officers of TDC
Name
Positions and Offices with Underwriter
Christopher S. Conner
Chief Compliance Officer, Privacy Officer, Secretary
Christopher J. Dagnault (1)
Chief Executive Officer and President, Director
Diane Krajewski
Chairman of the Board, Director
James Anthony Maciolek
FINOP, Chief Financial Officer and Controller
Robert R. Siracusa
Director
















Unless otherwise indicated, the principal business address of each of the above individuals is 1 Griffin Road North, Windsor, CT 06095.
(1) Address: 500 Bielenberg Drive. Woodbury, MN 55125.
(c) Not Applicable.
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
All of the accounts, books, records or other documents required to be kept by Section 31(a) of the Investment Company Act of 1940 and rules thereunder are maintained by Talcott Resolution at 1 Griffin Road North, Windsor, CT 06095.

ITEM 31. MANAGEMENT SERVICES
All management contracts are discussed in Part A and Part B of this Registration Statement.

ITEM 32. UNDERTAKINGS
(a)
The Registrant hereby undertakes to file a post-effective amendment to this Registration Statement as frequently as is necessary to ensure that the audited financial statements in the Registration Statement are never more than 16 months old so long as payments under the variable annuity Contracts may be accepted.
(b)
The Registrant hereby undertakes to include either (1) as part of any application to purchase a Contract offered by the Prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a post card or similar written communication affixed to or included in the Prospectus that the applicant can remove to send for a Statement of Additional Information.
(c)
The Registrant hereby undertakes to deliver any Statement of Additional Information and any financial statements required to be made available under this Form promptly upon written or oral request.
(d)
Talcott Resolution hereby represents that the aggregate fees and charges under the Contract are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by us.





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 the requirements for effectiveness of this Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has duly caused this Registration Statement to be signed on its behalf, in the Town of Windsor, and State of Connecticut on June 28, 2018.

Talcott Resolution Life Insurance Company
Separate Account Seven (Registrant)
By:
Peter F. Sannizzaro*
*By:
/s/ Lisa Proch

Peter F. Sannizzaro

Lisa Proch

President

Attorney-in-Fact





Talcott Resolution Life Insurance Company
(Depositor)
By:
Peter F. Sannizzaro*

Peter F. Sannizzaro

President


Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons and in the capacities and on the dates indicated.
Peter F. Sannizaro, President


Robert R. Siracusa, Chief Financial Officer


Robert J. Carbone, Director*
*By:
/s/ Lisa Proch
Henry Cornell, Director*

Lisa Proch
Gilles M. Dellaert, Director*

Attorney-in-Fact
Oliver M. Goldstein, Director*
Date:
June 28, 2018
Brion S. Johnson, Director*


Emily R. Pollack, Director*
 
 
Michael S. Rubinoff, Director*
 
 
David I. Schamis, Director*
 
 
Robert W. Stein, Director*
 
 
Heath L. Watkin, Director*
 
 
333-101942




 
EXHIBIT INDEX
(6)(a)
Articles of Incorporation of Talcott Resolution.
(6)(b)
Amended and Restated Bylaws of Talcott Resolution.
(9)
Opinion and Consent of Lisa Proch, Assistant General Counsel
(10)
Consent of Deloitte & Touche LLP, Independent Registered Public Accounting Firm
(26)
Organizational Chart
(99)
Power of Attorney