N-VPFS 1 sldl12022edgarformattedfs.htm N-VPFS Document

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors of Security Life of Denver Insurance Company and Policyholders of Security Life Separate Account L1

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statements of assets and liabilities for each of the divisions of Security Life Separate Account L1 (the “Separate Account”) listed in Appendix A, as of December 31, 2022, the related statements of operations, changes in net assets, and the financial highlights for each of the periods presented in Appendix A and the related notes. In our opinion, such financial statements and financial highlights present fairly, in all material respects, the financial position of each of the divisions of the Separate Account as of December 31, 2022, and the results of its operations, the changes in its net assets, and the financial highlights for each of the periods presented in Appendix A, in conformity with accounting principles generally accepted in the United States of America.

The financial highlights for the three years or periods ended December 31, 2020 were audited by other auditors whose report, dated April 15, 2021, expressed an unqualified opinion on those financial statements and financial highlights.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Separate Account's management. Our responsibility is to express an opinion on the Separate Account’s 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 Separate Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Separate 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 Separate 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, 2022, by correspondence with the underlying mutual fund. We believe that our audits provide a reasonable basis for our opinion.





/s/Deloitte & Touche LLP
Chicago, Illinois
April 21, 2023

We have served as the auditor of Security Life Separate Account L1 since 2021.




Security Life Separate Account L1 APPENDIX A
Division
Statements of Net Assets
as of
Statements of Operations for the Year Ended
Statements Of Changes in Net Assets
for the Two Years Ended
Financial Highlights for Two Years Ended
Invesco V.I. Core Equity Fund - Series IDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
American Funds Insurance Series® Growth Fund - Class 2December 31, 2022December 31, 2022December 31, 2022December 31, 2022
American Funds Insurance Series® Growth-Income Fund - Class 2December 31, 2022December 31, 2022December 31, 2022December 31, 2022
American Funds Insurance Series® International Fund - Class 2December 31, 2022December 31, 2022December 31, 2022December 31, 2022
BlackRock Global Allocation V.I. Fund - Class IIIDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Fidelity® VIP Contrafund® Portfolio - Service ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Fidelity® VIP Investment Grade Bond Portfolio - Initial ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Fidelity® VIP Equity-Income Portfolio - Service ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
M Capital Appreciation FundDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
M International Equity FundDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
M Large Cap Growth FundDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
M Large Cap Value FundDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Neuberger Berman Advisers Management Trust® Sustainable Equity Portfolio - Class I SharesDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
VanEck VIP Global Resources Fund - Initial Class SharesDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Balanced Portfolio - Class IDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Intermediate Bond Portfolio - Class IDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Global Perspectives® Portfolio - Class IDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Government Liquid Assets Portfolio - Class IDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Government Liquid Assets Portfolio - Service ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya High Yield Portfolio - Institutional ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Large Cap Growth Portfolio - Institutional ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Large Cap Value Portfolio - Institutional ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Limited Maturity Bond Portfolio - Service ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Retirement Growth Portfolio - Institutional ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Retirement Moderate Growth Portfolio - Institutional ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Retirement Moderate Portfolio - Institutional ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya U.S. Stock Index Portfolio - Institutional ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
VY® CBRE Global Real Estate Portfolio - Service Class **December 31, 2022December 31, 2022December 31, 2022December 31, 2022
VY® Invesco Growth and Income Portfolio - Service ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
VY® JPMorgan Emerging Markets Equity Portfolio - Institutional ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
VY® JPMorgan Small Cap Core Equity Portfolio - Institutional ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
VY® T. Rowe Price Capital Appreciation Portfolio - Institutional ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
VY® T. Rowe Price Equity Income Portfolio - Institutional ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Global Bond Portfolio - Service ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya International High Dividend Low Volatility Portfolio - Initial ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Solution Moderately Aggressive Portfolio - Initial ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
VY® American Century Small-Mid Cap Value Portfolio - Initial ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
VY® Baron Growth Portfolio - Initial ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
VY® Columbia Small Cap Value II Portfolio - Initial ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
VY® Invesco Comstock Portfolio - Initial ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
VY® Invesco Equity and Income Portfolio - Initial ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
VY® Invesco Global Portfolio - Initial ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
VY® JPMorgan Mid Cap Value Portfolio - Initial ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
VY® T. Rowe Price Diversified Mid Cap Growth Portfolio - Initial ClassDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Strategic Allocation Conservative Portfolio - Class IDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Strategic Allocation Growth Portfolio - Class IDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Strategic Allocation Moderate Portfolio - Class IDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Growth and Income Portfolio - Class IDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Global High Dividend Low Volatility Portfolio - Class IDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Index Plus LargeCap Portfolio - Class IDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022







Division
Statements of Net Assets
as of
Statements of Operations for the Year Ended
Statements Of Changes in Net Assets
for the Two Years Ended
Financial Highlights for Two Years Ended
Voya Index Plus MidCap Portfolio - Class IDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Index Plus SmallCap Portfolio - Class IDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya International Index Portfolio - Class I *December 31, 2022For the period from July 8, 2022 to
December 31, 2022		For the period from July 8, 2022 to
December 31, 2022		For the period from July 8, 2022 to
December 31, 2022
Voya Russell™ Large Cap Growth Index Portfolio - Class IDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Russell™ Large Cap Index Portfolio - Class IDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Russell™ Large Cap Value Index Portfolio - Class IDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Russell™ Mid Cap Growth Index Portfolio - Class IDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Russell™ Small Cap Index Portfolio - Class IDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya Small Company Portfolio - Class SDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya U.S. Bond Index Portfolio - Class IDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya MidCap Opportunities Portfolio - Class IDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022
Voya SmallCap Opportunities Portfolio - Class IDecember 31, 2022December 31, 2022December 31, 2022December 31, 2022

** Name changed during the
* Funds opened during the

SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Assets and Liabilities
As of December 31, 2022
(Dollars in thousands)
Invesco V.I. Core Equity Fund - Series I American Funds Insurance Series® Growth Fund - Class 2 American Funds Insurance Series® Growth-Income Fund - Class 2 American Funds Insurance Series® International Fund - Class 2 BlackRock Global Allocation V.I. Fund - Class III
Assets
Investments in mutual funds
at fair value$4,656 $67,650 $44,805 $33,763 $11,175 
Total assets4,656 67,650 44,805 33,763 11,175 
Net assets$4,656 $67,650 $44,805 $33,763 $11,175 
Total number of mutual fund shares189,662 897,217 905,897 2,216,879 941,446 
Cost of mutual fund shares$5,546 $73,195 $43,820 $41,267 $13,431 




























The accompanying notes are an integral part of these financial statements.
5
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Assets and Liabilities
As of December 31, 2022
(Dollars in thousands)
Fidelity® VIP Contrafund® Portfolio - Service Class Fidelity® VIP Investment Grade Bond Portfolio - Initial Class Fidelity® VIP Equity-Income Portfolio - Service Class M Capital Appreciation Fund M International Equity Fund
Assets
Investments in mutual funds
at fair value$23,597 $158 $5,080 $12,477 $9,069 
Total assets23,597 158 5,080 12,477 9,069 
Net assets$23,597 $158 $5,080 $12,477 $9,069 
Total number of mutual fund shares627,071 14,623 217,300 590,230 751,966 
Cost of mutual fund shares$23,251 $183 $5,074 $15,370 $9,096 



























The accompanying notes are an integral part of these financial statements.
6
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Assets and Liabilities
As of December 31, 2022
(Dollars in thousands)
M Large Cap Growth Fund M Large Cap Value Fund Neuberger Berman Advisers Management Trust® Sustainable Equity Portfolio - Class I Shares VanEck VIP Global Resources Fund - Initial Class Shares Voya Balanced Portfolio - Class I
Assets
Investments in mutual funds
at fair value$2,944 $1,670 $1,439 $424 $9,602 
Total assets2,944 1,670 1,439 424 9,602 
Net assets$2,944 $1,670 $1,439 $424 $9,602 
Total number of mutual fund shares126,958 117,996 53,706 14,936 735,823 
Cost of mutual fund shares$3,537 $1,515 $1,425 $388 $10,868 


























The accompanying notes are an integral part of these financial statements.
7
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Assets and Liabilities
As of December 31, 2022
(Dollars in thousands)
Voya Intermediate Bond Portfolio - Class I Voya Global Perspectives® Portfolio - Class I Voya Government Liquid Assets Portfolio - Class I Voya Government Liquid Assets Portfolio - Service Class Voya High Yield Portfolio - Institutional Class
Assets
Investments in mutual funds
at fair value$62,537 $559 $16,343 $17,928 $17,887 
Total assets62,537 559 16,343 17,928 17,887 
Net assets$62,537 $559 $16,343 $17,928 $17,887 
Total number of mutual fund shares5,883,173 63,130 16,343,794 17,928,414 2,170,741 
Cost of mutual fund shares$74,346 $690 $16,344 $17,928 $21,034 

























The accompanying notes are an integral part of these financial statements.
8
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Assets and Liabilities
As of December 31, 2022
(Dollars in thousands)
Voya Large Cap Growth Portfolio - Institutional Class Voya Large Cap Value Portfolio - Institutional Class Voya Limited Maturity Bond Portfolio - Service Class Voya Retirement Growth Portfolio - Institutional Class Voya Retirement Moderate Growth Portfolio - Institutional Class
Assets
Investments in mutual funds
at fair value$43,809 $17,264 $23,517 $27,901 $15,340 
Total assets43,809 17,264 23,517 27,901 15,340 
Net assets$43,809 $17,264 $23,517 $27,901 $15,340 
Total number of mutual fund shares4,434,186 3,301,072 2,478,141 2,614,926 1,574,940 
Cost of mutual fund shares$70,448 $23,526 $25,123 $33,158 $18,523 























The accompanying notes are an integral part of these financial statements.
9
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Assets and Liabilities
As of December 31, 2022
(Dollars in thousands)
Voya Retirement Moderate Portfolio - Institutional Class Voya U.S. Stock Index Portfolio - Institutional Class VY® CBRE Global Real Estate Portfolio - Service Class VY® Invesco Growth and Income Portfolio - Service Class VY® JPMorgan Emerging Markets Equity Portfolio - Institutional Class
Assets
Investments in mutual funds
at fair value$10,273 $162,565 $9,354 $10,244 $28,337 
Total assets10,273 162,565 9,354 10,244 28,337 
Net assets$10,273 $162,565 $9,354 $10,244 $28,337 
Total number of mutual fund shares1,089,365 10,302,152 998,338 479,386 2,363,419 
Cost of mutual fund shares$12,335 $160,418 $11,109 $10,655 $43,416 






















The accompanying notes are an integral part of these financial statements.
10
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Assets and Liabilities
As of December 31, 2022
(Dollars in thousands)
VY® JPMorgan Small Cap Core Equity Portfolio - Institutional Class VY® T. Rowe Price Capital Appreciation Portfolio - Institutional Class VY® T. Rowe Price Equity Income Portfolio - Institutional Class Voya Global Bond Portfolio - Service ClassVoya International High Dividend Low Volatility Portfolio - Initial Class
Assets
Investments in mutual funds
at fair value$31,244 $104,026 $29,015 $10,413 $10,593 
Total assets31,244 104,026 29,015 10,413 10,593 
Net assets$31,244 $104,026 $29,015 $10,413 $10,593 
Total number of mutual fund shares2,201,830 4,189,540 2,919,084 1,273,015 1,169,205 
Cost of mutual fund shares$37,995 $116,044 $31,024 $13,498 $11,206 


























The accompanying notes are an integral part of these financial statements.
11
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Assets and Liabilities
As of December 31, 2022
(Dollars in thousands)
Voya Solution Moderately Aggressive Portfolio - Initial ClassVY® American Century Small-Mid Cap Value Portfolio - Initial ClassVY® Baron Growth Portfolio - Initial ClassVY® Columbia Small Cap Value II Portfolio - Initial ClassVY® Invesco Comstock Portfolio - Initial Class
Assets
Investments in mutual funds
at fair value$2,545 $53 $12,423 $7,565 $11,542 
Total assets2,545 53 12,423 7,565 11,542 
Net assets$2,545 $53 $12,423 $7,565 $11,542 
Total number of mutual fund shares245,928 4,416 509,979 470,768 551,181 
Cost of mutual fund shares$3,084 $53 $13,603 $7,759 $9,974 
























The accompanying notes are an integral part of these financial statements.
12
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Assets and Liabilities
As of December 31, 2022
(Dollars in thousands)
VY® Invesco Equity and Income Portfolio - Initial ClassVY® Invesco Global Portfolio - Initial ClassVY® JPMorgan Mid Cap Value Portfolio - Initial ClassVY® T. Rowe Price Diversified Mid Cap Growth Portfolio - Initial ClassVoya Strategic Allocation Conservative Portfolio - Class I
Assets
Investments in mutual funds
at fair value$9,173 $11,754 $12,922 $39,419 $47 
Total assets9,173 11,754 12,922 39,419 47 
Net assets$9,173 $11,754 $12,922 $39,419 $47 
Total number of mutual fund shares223,995 773,312 849,028 4,605,082 4,481 
Cost of mutual fund shares$9,792 $15,628 $15,304 $53,335 $49 























The accompanying notes are an integral part of these financial statements.
13
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Assets and Liabilities
As of December 31, 2022
(Dollars in thousands)
Voya Strategic Allocation Growth Portfolio - Class IVoya Strategic Allocation Moderate Portfolio - Class IVoya Growth and Income Portfolio - Class IVoya Global High Dividend Low Volatility Portfolio - Class IVoya Index Plus LargeCap Portfolio - Class I
Assets
Investments in mutual funds
at fair value$208 $95 $9,883 $10,288 $28,591 
Total assets208 95 9,883 10,288 28,591 
Net assets$208 $95 $9,883 $10,288 $28,591 
Total number of mutual fund shares17,293 8,219 585,492 936,161 1,364,086 
Cost of mutual fund shares$189 $105 $14,464 $9,365 $33,622 





















The accompanying notes are an integral part of these financial statements.
14
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Assets and Liabilities
As of December 31, 2022
(Dollars in thousands)
Voya Index Plus MidCap Portfolio - Class IVoya Index Plus SmallCap Portfolio - Class IVoya International Index Portfolio - Class IVoya Russell™ Large Cap Growth Index Portfolio - Class IVoya Russell™ Large Cap Index Portfolio - Class I
Assets
Investments in mutual funds
at fair value$10,732 $7,955 $39,027 $43,892 $12,056 
Total assets10,732 7,955 39,027 43,892 12,056 
Net assets$10,732 $7,955 $39,027 $43,892 $12,056 
Total number of mutual fund shares619,965 407,515 3,938,188 953,351 459,278 
Cost of mutual fund shares$12,584 $8,246 $36,784 $35,202 $12,094 





















The accompanying notes are an integral part of these financial statements.
15
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Assets and Liabilities
As of December 31, 2022
(Dollars in thousands)
Voya Russell™ Large Cap Value Index Portfolio - Class IVoya Russell™ Mid Cap Growth Index Portfolio - Class IVoya Russell™ Small Cap Index Portfolio - Class IVoya Small Company Portfolio - Class SVoya U.S. Bond Index Portfolio - Class I
Assets
Investments in mutual funds
at fair value$6,704 $5,402 $6,425 $8,478 $13,541 
Total assets6,704 5,402 6,425 8,478 13,541 
Net assets$6,704 $5,402 $6,425 $8,478 $13,541 
Total number of mutual fund shares254,038 171,725 509,485 693,201 1,483,141 
Cost of mutual fund shares$5,833 $6,521 $7,081 $10,637 $16,173 


















The accompanying notes are an integral part of these financial statements.
16
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Assets and Liabilities
As of December 31, 2022
(Dollars in thousands)
Voya MidCap Opportunities Portfolio - Class IVoya SmallCap Opportunities Portfolio - Class I
Assets
Investments in mutual funds
at fair value$17,133 $6,314 
Total assets17,133 6,314 
Net assets$17,133 $6,314 
Total number of mutual fund shares4,158,659 386,440 
Cost of mutual fund shares$27,393 $8,135 




























The accompanying notes are an integral part of these financial statements.
17
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Operations
For the Year Ended December 31, 2022
(Dollars in thousands)
Invesco V.I. Core Equity Fund - Series I American Funds Insurance Series® Growth Fund - Class 2 American Funds Insurance Series® Growth-Income Fund - Class 2 American Funds Insurance Series® International Fund - Class 2 BlackRock Global Allocation V.I. Fund - Class III
Net investment income (loss)
Investment income:
Dividends$47 $247 $611 $628 $— 
Expenses:
Mortality and expense risk charges35 174 94 86 14 
Total expenses35 174 94 86 14 
Net investment income (loss)12 73 517 542 (14)
Realized and unrealized gain (loss)
on investments
Net realized gain (loss) on investments21 1,096 437 (604)(52)
Capital gains distributions797 10,994 4,683 4,978 180 
Total realized gain (loss) on investments
and capital gains distributions818 12,090 5,120 4,374 128 
Net change in unrealized appreciation
(depreciation) of investments(2,136)(41,561)(15,100)(13,989)(2,293)
Net realized and unrealized gain (loss)
on investments(1,318)(29,471)(9,980)(9,615)(2,165)
Net increase (decrease) in net assets
resulting from operations$(1,306)$(29,398)$(9,463)$(9,073)$(2,179)


















The accompanying notes are an integral part of these financial statements.
18
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Operations
For the Year Ended December 31, 2022
(Dollars in thousands)
Fidelity® VIP Contrafund® Portfolio - Service Class Fidelity® VIP Investment Grade Bond Portfolio - Initial Class Fidelity® VIP Equity-Income Portfolio - Service Class M Capital Appreciation Fund M International Equity Fund
Net investment income (loss)
Investment income:
Dividends$105 $4 $94 $— $253 
Expenses:
Mortality and expense risk charges69 1 20 97 65 
Total expenses69 1 20 97 65 
Net investment income (loss)36 3 74 (97)188 
Realized and unrealized gain (loss)
on investments
Net realized gain (loss) on investments697 — 95 (117)5 
Capital gains distributions1,260 9 175 1,083 — 
Total realized gain (loss) on investments
and capital gains distributions1,957 9 270 966 5 
Net change in unrealized appreciation
(depreciation) of investments(10,841)(36)(652)(3,748)(1,719)
Net realized and unrealized gain (loss)
on investments(8,884)(27)(382)(2,782)(1,714)
Net increase (decrease) in net assets
resulting from operations$(8,848)$(24)$(308)$(2,879)$(1,526)
















The accompanying notes are an integral part of these financial statements.
19
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Operations
For the Year Ended December 31, 2022
(Dollars in thousands)
M Large Cap Growth Fund M Large Cap Value Fund Neuberger Berman Advisers Management Trust® Sustainable Equity Portfolio - Class I Shares VanEck VIP Global Resources Fund - Initial Class Shares Voya Balanced Portfolio - Class I
Net investment income (loss)
Investment income:
Dividends$— $34 $7 $7 $186 
Expenses:
Mortality and expense risk charges16 8 5 3 32 
Total expenses16 8 5 3 32 
Net investment income (loss)(16)26 2 4 154 
Realized and unrealized gain (loss)
on investments
Net realized gain (loss) on investments51 47 32 (3)(49)
Capital gains distributions240 77 144 — 1,325 
Total realized gain (loss) on investments
and capital gains distributions291 124 176 (3)1,276 
Net change in unrealized appreciation
(depreciation) of investments(1,278)(190)(517)32 (3,559)
Net realized and unrealized gain (loss)
on investments(987)(66)(341)29 (2,283)
Net increase (decrease) in net assets
resulting from operations$(1,003)$(40)$(339)$33 $(2,129)














The accompanying notes are an integral part of these financial statements.
20
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Operations
For the Year Ended December 31, 2022
(Dollars in thousands)
Voya Intermediate Bond Portfolio - Class I Voya Global Perspectives® Portfolio - Class I Voya Government Liquid Assets Portfolio - Class I Voya Government Liquid Assets Portfolio - Service Class Voya High Yield Portfolio - Institutional Class
Net investment income (loss)
Investment income:
Dividends$1,965 $18 $252 $248 $1,118 
Expenses:
Mortality and expense risk charges288 — 126 — 68 
Total expenses288 — 126 — 68 
Net investment income (loss)1,677 18 126 248 1,050 
Realized and unrealized gain (loss)
on investments
Net realized gain (loss) on investments(2,261)(1)— — (369)
Capital gains distributions195 45 — — — 
Total realized gain (loss) on investments
and capital gains distributions(2,066)44 — — (369)
Net change in unrealized appreciation
(depreciation) of investments(11,419)(171)— — (3,554)
Net realized and unrealized gain (loss)
on investments(13,485)(127)— — (3,923)
Net increase (decrease) in net assets
resulting from operations$(11,808)$(109)$126 $248 $(2,873)













The accompanying notes are an integral part of these financial statements.
21
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Operations
For the Year Ended December 31, 2022
(Dollars in thousands)
Voya Large Cap Growth Portfolio - Institutional Class Voya Large Cap Value Portfolio - Institutional Class Voya Limited Maturity Bond Portfolio - Service Class Voya Retirement Growth Portfolio - Institutional Class Voya Retirement Moderate Growth Portfolio - Institutional Class
Net investment income (loss)
Investment income:
Dividends$— $267 $395 $477 $296 
Expenses:
Mortality and expense risk charges226 66 99 37 32 
Total expenses226 66 99 37 32 
Net investment income (loss)(226)201 296 440 264 
Realized and unrealized gain (loss)
on investments
Net realized gain (loss) on investments(1,297)(1,235)(149)(122)(145)
Capital gains distributions16,894 9,877 — 3,860 1,950 
Total realized gain (loss) on investments
and capital gains distributions15,597 8,642 (149)3,738 1,805 
Net change in unrealized appreciation
(depreciation) of investments(35,399)(9,519)(1,567)(9,722)(5,097)
Net realized and unrealized gain (loss)
on investments(19,802)(877)(1,716)(5,984)(3,292)
Net increase (decrease) in net assets
resulting from operations$(20,028)$(676)$(1,420)$(5,544)$(3,028)

















The accompanying notes are an integral part of these financial statements.
22
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Operations
For the Year Ended December 31, 2022
(Dollars in thousands)
Voya Retirement Moderate Portfolio - Institutional Class Voya U.S. Stock Index Portfolio - Institutional Class VY® CBRE Global Real Estate Portfolio - Service Class VY® Invesco Growth and Income Portfolio - Service Class VY® JPMorgan Emerging Markets Equity Portfolio - Institutional Class
Net investment income (loss)
Investment income:
Dividends$231 $2,308 $317 $139 $— 
Expenses:
Mortality and expense risk charges55 1,008 34 38 128 
Total expenses55 1,008 34 38 128 
Net investment income (loss)176 1,300 283 101 (128)
Realized and unrealized gain (loss)
on investments
Net realized gain (loss) on investments(120)2,861 (162)(111)(267)
Capital gains distributions1,220 17,237 543 1,381 8,581 
Total realized gain (loss) on investments
and capital gains distributions1,100 20,098 381 1,270 8,314 
Net change in unrealized appreciation
(depreciation) of investments(3,192)(60,580)(3,921)(2,091)(18,221)
Net realized and unrealized gain (loss)
on investments(2,092)(40,482)(3,540)(821)(9,907)
Net increase (decrease) in net assets
resulting from operations$(1,916)$(39,182)$(3,257)$(720)$(10,035)

















The accompanying notes are an integral part of these financial statements.
23
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Operations
For the Year Ended December 31, 2022
(Dollars in thousands)
VY® JPMorgan Small Cap Core Equity Portfolio - Institutional Class VY® T. Rowe Price Capital Appreciation Portfolio - Institutional Class VY® T. Rowe Price Equity Income Portfolio - Institutional Class Voya Global Bond Portfolio - Service ClassVoya International High Dividend Low Volatility Portfolio - Initial Class
Net investment income (loss)
Investment income:
Dividends$2 $1,664 $650 $291 $500 
Expenses:
Mortality and expense risk charges181 267 108 45 53 
Total expenses181 267 108 45 53 
Net investment income (loss)(179)1,397 542 246 447 
Realized and unrealized gain (loss)
on investments
Net realized gain (loss) on investments(573)141 (1,805)(199)(694)
Capital gains distributions5,989 13,471 3,031 — — 
Total realized gain (loss) on investments
and capital gains distributions5,416 13,612 1,226 (199)(694)
Net change in unrealized appreciation
(depreciation) of investments(12,525)(30,171)(2,946)(2,516)(887)
Net realized and unrealized gain (loss)
on investments(7,109)(16,559)(1,720)(2,715)(1,581)
Net increase (decrease) in net assets
resulting from operations$(7,288)$(15,162)$(1,178)$(2,469)$(1,134)
















The accompanying notes are an integral part of these financial statements.
24
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Operations
For the Year Ended December 31, 2022
(Dollars in thousands)
Voya Solution Moderately Aggressive Portfolio - Initial ClassVY® American Century Small-Mid Cap Value Portfolio - Initial ClassVY® Baron Growth Portfolio - Initial ClassVY® Columbia Small Cap Value II Portfolio - Initial ClassVY® Invesco Comstock Portfolio - Initial Class
Net investment income (loss)
Investment income:
Dividends$100 $1 $— $22 $214 
Expenses:
Mortality and expense risk charges3 — 39 27 31 
Total expenses3 — 39 27 31 
Net investment income (loss)97 1 (39)(5)183 
Realized and unrealized gain (loss)
on investments
Net realized gain (loss) on investments53 0 (277)285 262 
Capital gains distributions370 9 1,323 1,221 30 
Total realized gain (loss) on investments
and capital gains distributions423 9 1,046 1,506 292 
Net change in unrealized appreciation
(depreciation) of investments(1,105)(13)(5,162)(2,880)(434)
Net realized and unrealized gain (loss)
on investments(682)(4)(4,116)(1,374)(142)
Net increase (decrease) in net assets
resulting from operations$(585)$(3)$(4,155)$(1,379)$41 














The accompanying notes are an integral part of these financial statements.
25
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Operations
For the Year Ended December 31, 2022
(Dollars in thousands)
VY® Invesco Equity and Income Portfolio - Initial ClassVY® Invesco Global Portfolio - Initial ClassVY® JPMorgan Mid Cap Value Portfolio - Initial ClassVY® T. Rowe Price Diversified Mid Cap Growth Portfolio - Initial ClassVoya Strategic Allocation Conservative Portfolio - Class I
Net investment income (loss)
Investment income:
Dividends$166 $— $156 $0 $2 
Expenses:
Mortality and expense risk charges22 37 57 224 0 
Total expenses22 37 57 224 0 
Net investment income (loss)144 (37)99 (224)2 
Realized and unrealized gain (loss)
on investments
Net realized gain (loss) on investments(28)(33)(190)788 0 
Capital gains distributions1,370 1,969 2,153 10,299 5 
Total realized gain (loss) on investments
and capital gains distributions1,342 1,936 1,963 11,087 5 
Net change in unrealized appreciation
(depreciation) of investments(2,315)(7,668)(3,352)(24,440)(18)
Net realized and unrealized gain (loss)
on investments(973)(5,732)(1,389)(13,353)(13)
Net increase (decrease) in net assets
resulting from operations$(829)$(5,769)$(1,290)$(13,577)$(11)













The accompanying notes are an integral part of these financial statements.
26
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Operations
For the Year Ended December 31, 2022
(Dollars in thousands)
Voya Strategic Allocation Growth Portfolio - Class IVoya Strategic Allocation Moderate Portfolio - Class IVoya Growth and Income Portfolio - Class IVoya Global High Dividend Low Volatility Portfolio - Class IVoya Index Plus LargeCap Portfolio - Class I
Net investment income (loss)
Investment income:
Dividends$7 $7 $120 $303 $260 
Expenses:
Mortality and expense risk charges— — 27 29 142 
Total expenses— — 27 29 142 
Net investment income (loss)7 7 93 274 118 
Realized and unrealized gain (loss)
on investments
Net realized gain (loss) on investments3 1 (620)490 1,379 
Capital gains distributions28 23 1,396 370 7,508 
Total realized gain (loss) on investments
and capital gains distributions31 24 776 860 8,887 
Net change in unrealized appreciation
(depreciation) of investments(90)(83)(2,723)(1,838)(16,311)
Net realized and unrealized gain (loss)
on investments(59)(59)(1,947)(978)(7,424)
Net increase (decrease) in net assets
resulting from operations$(52)$(52)$(1,854)$(704)$(7,306)
















The accompanying notes are an integral part of these financial statements.
27
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Operations
For the Year Ended December 31, 2022
(Dollars in thousands)
Voya Index Plus MidCap Portfolio - Class IVoya Index Plus SmallCap Portfolio - Class IVoya International Index Portfolio - Class I*Voya Russell™ Large Cap Growth Index Portfolio - Class IVoya Russell™ Large Cap Index Portfolio - Class I
Net investment income (loss)
Investment income:
Dividends$114 $70 $0 $231 $103 
Expenses:
Mortality and expense risk charges39 24 101 316 52 
Total expenses39 24 101 316 52 
Net investment income (loss)75 46 (101)(85)51 
Realized and unrealized gain (loss)
on investments
Net realized gain (loss) on investments(8)(256)72 4,854 2,156 
Capital gains distributions2,685 1,155 — 4,582 583 
Total realized gain (loss) on investments
and capital gains distributions2,677 899 72 9,436 2,739 
Net change in unrealized appreciation
(depreciation) of investments(4,921)(2,249)2,243 (30,030)(6,482)
Net realized and unrealized gain (loss)
on investments(2,244)(1,350)2,315 (20,594)(3,743)
Net increase (decrease) in net assets
resulting from operations$(2,169)$(1,304)$2,214 $(20,679)$(3,692)


*This fund was opened on July 8, 2022.














The accompanying notes are an integral part of these financial statements.
28
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Operations
For the Year Ended December 31, 2022
(Dollars in thousands)
Voya Russell™ Large Cap Value Index Portfolio - Class IVoya Russell™ Mid Cap Growth Index Portfolio - Class IVoya Russell™ Small Cap Index Portfolio - Class IVoya Small Company Portfolio - Class SVoya U.S. Bond Index Portfolio - Class I
Net investment income (loss)
Investment income:
Dividends$97 $— $52 $— $315 
Expenses:
Mortality and expense risk charges31 19 20 47 67 
Total expenses31 19 20 47 67 
Net investment income (loss)66 (19)32 (47)248 
Realized and unrealized gain (loss)
on investments
Net realized gain (loss) on investments373 41 (93)(406)(217)
Capital gains distributions— 571 512 2,521 — 
Total realized gain (loss) on investments
and capital gains distributions373 612 419 2,115 (217)
Net change in unrealized appreciation
(depreciation) of investments(937)(2,646)(2,036)(3,963)(2,041)
Net realized and unrealized gain (loss)
on investments(564)(2,034)(1,617)(1,848)(2,258)
Net increase (decrease) in net assets
resulting from operations$(498)$(2,053)$(1,585)$(1,895)$(2,010)

















The accompanying notes are an integral part of these financial statements.
29
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Operations
For the Year Ended December 31, 2022
(Dollars in thousands)
Voya MidCap Opportunities Portfolio - Class IVoya SmallCap Opportunities Portfolio - Class I
Net investment income (loss)
Investment income:
Dividends$— $— 
Expenses:
Mortality and expense risk charges67 23 
Total expenses67 23 
Net investment income (loss)(67)(23)
Realized and unrealized gain (loss)
on investments
Net realized gain (loss) on investments(1,458)(276)
Capital gains distributions10,912 1,133 
Total realized gain (loss) on investments
and capital gains distributions9,454 857 
Net change in unrealized appreciation
(depreciation) of investments(14,991)(2,544)
Net realized and unrealized gain (loss)
on investments(5,537)(1,687)
Net increase (decrease) in net assets
resulting from operations$(5,604)$(1,710)

The accompanying notes are an integral part of these financial statements.
30
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Changes in Net Assets
For the Year Ended December 31, 2022 and 2021
(Dollars in thousands)
Invesco V.I. Core Equity Fund - Series I American Funds Insurance Series® Growth Fund - Class 2 American Funds Insurance Series® Growth-Income Fund - Class 2 American Funds Insurance Series® International Fund - Class 2
Net assets at January 1, 2021$5,240 $88,173 $49,936 $43,465 
Increase (decrease) in net assets
Operations:
Net investment income (loss)(1)(7)500 969 
Total realized gain (loss) on investments
and capital gains distributions244 16,966 1,652 387 
Net change in unrealized appreciation
(depreciation) of investments1,123 1,356 9,232 (2,108)
Net increase (decrease) in net assets resulting from operations1,366 18,315 11,384 (752)
Changes from principal transactions:
Premiums— 1,830 1,558 1,405 
Surrenders & withdrawals(180)(4,159)(1,389)(839)
Cost of insurance & administrative charges(130)(2,402)(1,501)(1,173)
Benefit payments(1)(308)(419)(185)
Transfers between Divisions (including fixed account), net(37)(2,783)(2,019)1,217 
Increase (decrease) in net assets
derived from principal transactions(348)(7,822)(3,770)425 
Total increase (decrease) in net assets1,018 10,493 7,614 (327)
Net assets at December 31, 20216,258 98,666 57,550 43,138 
Increase (decrease) in net assets
Operations:
Net investment income (loss)12 73 517 542 
Total realized gain (loss) on investments
and capital gains distributions818 12,090 5,120 4,374 
Net change in unrealized appreciation
(depreciation) of investments(2,136)(41,561)(15,100)(13,989)
Net increase (decrease) in net assets resulting from operations(1,306)(29,398)(9,463)(9,073)
Changes from principal transactions:
Premiums— 1,781 1,521 1,229 
Surrenders & withdrawals(97)(1,317)(1,187)(1,091)
Cost of insurance & administrative charges(159)(2,413)(1,631)(1,189)
Benefit payments(15)(374)(261)(146)
Transfers between Divisions (including fixed account), net(25)705 (1,724)895 
Increase (decrease) in net assets
derived from principal transactions(296)(1,618)(3,282)(302)
Total increase (decrease) in net assets(1,602)(31,016)(12,745)(9,375)
Net assets at December 31, 2022$4,656 $67,650 $44,805 $33,763 




The accompanying notes are an integral part of these financial statements.
31
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Changes in Net Assets
For the Year Ended December 31, 2022 and 2021
(Dollars in thousands)

BlackRock Global Allocation V.I. Fund - Class III Fidelity® VIP Contrafund® Portfolio - Service Class Fidelity® VIP Investment Grade Bond Portfolio - Initial Class Fidelity® VIP Equity-Income Portfolio - Service Class
Net assets at January 1, 2021$12,948 $29,479 $195 $3,962 
Increase (decrease) in net assets
Operations:
Net investment income (loss)94 (73)3 78 
Total realized gain (loss) on investments
and capital gains distributions2,434 5,746 6 645 
Net change in unrealized appreciation
(depreciation) of investments(1,741)2,051 (11)315 
Net increase (decrease) in net assets resulting from operations787 7,724 (2)1,038 
Changes from principal transactions:
Premiums824 884 — 138 
Surrenders & withdrawals(374)(805)— (64)
Cost of insurance & administrative charges(403)(1,006)(4)(216)
Benefit payments(6)(371)— (24)
Transfers between Divisions (including fixed account), net(478)(1,453)(1)976 
Increase (decrease) in net assets
derived from principal transactions(437)(2,751)(5)810 
Total increase (decrease) in net assets350 4,973 (7)1,848 
Net assets at December 31, 202113,298 34,452 188 5,810 
Increase (decrease) in net assets
Operations:
Net investment income (loss)(14)36 3 74 
Total realized gain (loss) on investments
and capital gains distributions128 1,957 9 270 
Net change in unrealized appreciation
(depreciation) of investments(2,293)(10,841)(36)(652)
Net increase (decrease) in net assets resulting from operations(2,179)(8,848)(24)(308)
Changes from principal transactions:
Premiums622 871 — 136 
Surrenders & withdrawals(321)(1,050)— (112)
Cost of insurance & administrative charges(351)(1,044)(6)(294)
Benefit payments(38)(22)— (6)
Transfers between Divisions (including fixed account), net144 (762)— (146)
Increase (decrease) in net assets
derived from principal transactions56 (2,007)(6)(422)
Total increase (decrease) in net assets(2,123)(10,855)(30)(730)
Net assets at December 31, 2022$11,175 $23,597 $158 $5,080 



The accompanying notes are an integral part of these financial statements.
32
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Changes in Net Assets
For the Year Ended December 31, 2022 and 2021
(Dollars in thousands)



M Capital Appreciation Fund M International Equity Fund M Large Cap Growth Fund M Large Cap Value Fund
Net assets at January 1, 2021$13,702 $10,036 $3,485 $1,523 
Increase (decrease) in net assets
Operations:
Net investment income (loss)(109)181 (20)19 
Total realized gain (loss) on investments
and capital gains distributions2,557 115 831 34 
Net change in unrealized appreciation
(depreciation) of investments(193)713 (97)384 
Net increase (decrease) in net assets resulting from operations2,255 1,009 714 437 
Changes from principal transactions:
Premiums30 49 50 36 
Surrenders & withdrawals— — — — 
Cost of insurance & administrative charges(104)(149)(133)(66)
Benefit payments(79)(143)(68)— 
Transfers between Divisions (including fixed account), net(474)(43)(143)(142)
Increase (decrease) in net assets
derived from principal transactions(627)(286)(294)(172)
Total increase (decrease) in net assets1,628 723 420 265 
Net assets at December 31, 202115,330 10,759 3,905 1,788 
Increase (decrease) in net assets
Operations:
Net investment income (loss)(97)188 (16)26 
Total realized gain (loss) on investments
and capital gains distributions966 5 291 124 
Net change in unrealized appreciation
(depreciation) of investments(3,748)(1,719)(1,278)(190)
Net increase (decrease) in net assets resulting from operations(2,879)(1,526)(1,003)(40)
Changes from principal transactions:
Premiums31 41 56 34 
Surrenders & withdrawals— — — — 
Cost of insurance & administrative charges(120)(162)(128)(81)
Benefit payments(3)(5)(7)(9)
Transfers between Divisions (including fixed account), net118 (38)121 (22)
Increase (decrease) in net assets
derived from principal transactions26 (164)42 (78)
Total increase (decrease) in net assets(2,853)(1,690)(961)(118)
Net assets at December 31, 2022$12,477 $9,069 $2,944 $1,670 

The accompanying notes are an integral part of these financial statements.
33
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Changes in Net Assets
For the Year Ended December 31, 2022 and 2021
(Dollars in thousands)
Neuberger Berman Advisers Management Trust® Sustainable Equity Portfolio - Class I Shares VanEck VIP Global Resources Fund - Initial Class Shares Voya Balanced Portfolio - Class I Voya Intermediate Bond Portfolio - Class I
Net assets at January 1, 2021$1,641 $383 $11,811 $83,652 
Increase (decrease) in net assets
Operations:
Net investment income (loss)2 (1)163 2,144 
Total realized gain (loss) on investments
and capital gains distributions87 (6)571 (25)
Net change in unrealized appreciation
(depreciation) of investments276 76 1,009 (3,205)
Net increase (decrease) in net assets resulting from operations365 69 1,743 (1,086)
Changes from principal transactions:
Premiums40 — 508 2,026 
Surrenders & withdrawals(71)(8)(1,549)(1,413)
Cost of insurance & administrative charges(37)(10)(495)(2,681)
Benefit payments(1)(6)(165)(692)
Transfers between Divisions (including fixed account), net(99)(3)191 3,584 
Increase (decrease) in net assets
derived from principal transactions(168)(27)(1,510)824 
Total increase (decrease) in net assets197 42 233 (262)
Net assets at December 31, 20211,838 425 12,044 83,390 
Increase (decrease) in net assets
Operations:
Net investment income (loss)2 4 154 1,677 
Total realized gain (loss) on investments
and capital gains distributions176 (3)1,276 (2,066)
Net change in unrealized appreciation
(depreciation) of investments(517)32 (3,559)(11,419)
Net increase (decrease) in net assets resulting from operations(339)33 (2,129)(11,808)
Changes from principal transactions:
Premiums27 — 487 1,738 
Surrenders & withdrawals(32)(19)(365)(2,704)
Cost of insurance & administrative charges(38)(14)(450)(2,583)
Benefit payments(5)— (114)(1,011)
Transfers between Divisions (including fixed account), net(12)(1)129 (4,485)
Increase (decrease) in net assets
derived from principal transactions(60)(34)(313)(9,045)
Total increase (decrease) in net assets(399)(1)(2,442)(20,853)
Net assets at December 31, 2022$1,439 $424 $9,602 $62,537 




The accompanying notes are an integral part of these financial statements.
34
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Changes in Net Assets
For the Year Ended December 31, 2022 and 2021
(Dollars in thousands)
Voya Global Perspectives® Portfolio - Class I Voya Government Liquid Assets Portfolio - Class I Voya Government Liquid Assets Portfolio - Service Class Voya High Yield Portfolio - Institutional Class
Net assets at January 1, 2021$584 $21,084 $14,600 $21,723 
Increase (decrease) in net assets
Operations:
Net investment income (loss)22 (132)— 1,118 
Total realized gain (loss) on investments
and capital gains distributions31 5 4 40 
Net change in unrealized appreciation
(depreciation) of investments(16)— — (85)
Net increase (decrease) in net assets resulting from operations37 (127)4 1,073 
Changes from principal transactions:
Premiums76 1,120 1,213 653 
Surrenders & withdrawals(76)(1,308)(3,224)(774)
Cost of insurance & administrative charges(32)(1,679)(1,647)(825)
Benefit payments— (114)(89)(45)
Transfers between Divisions (including fixed account), net29 (3,303)2,259 1,183 
Increase (decrease) in net assets
derived from principal transactions(3)(5,284)(1,488)192 
Total increase (decrease) in net assets34 (5,411)(1,484)1,265 
Net assets at December 31, 2021618 15,673 13,116 22,988 
Increase (decrease) in net assets
Operations:
Net investment income (loss)18 126 248 1,050 
Total realized gain (loss) on investments
and capital gains distributions44 — — (369)
Net change in unrealized appreciation
(depreciation) of investments(171)— — (3,554)
Net increase (decrease) in net assets resulting from operations(109)126 248 (2,873)
Changes from principal transactions:
Premiums61 916 2,062 559 
Surrenders & withdrawals— (650)(1,270)(1,211)
Cost of insurance & administrative charges(31)(1,894)(1,829)(931)
Benefit payments— (12)(186)(46)
Transfers between Divisions (including fixed account), net20 2,184 5,787 (599)
Increase (decrease) in net assets
derived from principal transactions50 544 4,564 (2,228)
Total increase (decrease) in net assets(59)670 4,812 (5,101)
Net assets at December 31, 2022$559 $16,343 $17,928 $17,887 



The accompanying notes are an integral part of these financial statements.
35
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Changes in Net Assets
For the Year Ended December 31, 2022 and 2021
(Dollars in thousands)
Voya Large Cap Growth Portfolio - Institutional Class Voya Large Cap Value Portfolio - Institutional Class Voya Limited Maturity Bond Portfolio - Service Class Voya Retirement Growth Portfolio - Institutional Class
Net assets at January 1, 2021$61,600 $16,725 $27,367 $33,460 
Increase (decrease) in net assets
Operations:
Net investment income (loss)(288)385 272 661 
Total realized gain (loss) on investments
and capital gains distributions13,137 300 71 2,366 
Net change in unrealized appreciation
(depreciation) of investments(1,721)3,530 (524)1,860 
Net increase (decrease) in net assets resulting from operations11,128 4,215 (181)4,887 
Changes from principal transactions:
Premiums1,579 522 623 1,465 
Surrenders & withdrawals(1,479)(297)(363)(2,380)
Cost of insurance & administrative charges(1,836)(610)(750)(1,059)
Benefit payments(1,905)(190)(45)— 
Transfers between Divisions (including fixed account), net(2,876)(937)2,880 (2,580)
Increase (decrease) in net assets
derived from principal transactions(6,517)(1,512)2,345 (4,554)
Total increase (decrease) in net assets4,611 2,703 2,164 333 
Net assets at December 31, 202166,211 19,428 29,531 33,793 
Increase (decrease) in net assets
Operations:
Net investment income (loss)(226)201 296 440 
Total realized gain (loss) on investments
and capital gains distributions15,597 8,642 (149)3,738 
Net change in unrealized appreciation
(depreciation) of investments(35,399)(9,519)(1,567)(9,722)
Net increase (decrease) in net assets resulting from operations(20,028)(676)(1,420)(5,544)
Changes from principal transactions:
Premiums1,337 483 523 1,209 
Surrenders & withdrawals(1,462)(356)(229)(431)
Cost of insurance & administrative charges(1,871)(671)(821)(1,014)
Benefit payments(922)(59)(67)(2)
Transfers between Divisions (including fixed account), net544 (885)(4,000)(110)
Increase (decrease) in net assets
derived from principal transactions(2,374)(1,488)(4,594)(348)
Total increase (decrease) in net assets(22,402)(2,164)(6,014)(5,892)
Net assets at December 31, 2022$43,809 $17,264 $23,517 $27,901 


The accompanying notes are an integral part of these financial statements.
36
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Changes in Net Assets
For the Year Ended December 31, 2022 and 2021
(Dollars in thousands)
Voya Retirement Moderate Growth Portfolio - Institutional Class Voya Retirement Moderate Portfolio - Institutional Class Voya U.S. Stock Index Portfolio - Institutional Class VY® CBRE Global Real Estate Portfolio - Service Class
Net assets at January 1, 2021$16,507 $10,605 $182,255 $10,625 
Increase (decrease) in net assets
Operations:
Net investment income (loss)352 210 1,093 276 
Total realized gain (loss) on investments
and capital gains distributions759 488 27,513 (24)
Net change in unrealized appreciation
(depreciation) of investments1,229 363 19,209 3,158 
Net increase (decrease) in net assets resulting from operations2,340 1,061 47,815 3,410 
Changes from principal transactions:
Premiums1,121 253 3,030 387 
Surrenders & withdrawals(470)(32)(9,011)(190)
Cost of insurance & administrative charges(416)(399)(5,076)(382)
Benefit payments(134)— (2,351)(2)
Transfers between Divisions (including fixed account), net(81)1,116 (3,155)(594)
Increase (decrease) in net assets
derived from principal transactions20 938 (16,563)(781)
Total increase (decrease) in net assets2,360 1,999 31,252 2,629 
Net assets at December 31, 202118,867 12,604 213,507 13,254 
Increase (decrease) in net assets
Operations:
Net investment income (loss)264 176 1,300 283 
Total realized gain (loss) on investments
and capital gains distributions1,805 1,100 20,098 381 
Net change in unrealized appreciation
(depreciation) of investments(5,097)(3,192)(60,580)(3,921)
Net increase (decrease) in net assets resulting from operations(3,028)(1,916)(39,182)(3,257)
Changes from principal transactions:
Premiums639 307 2,669 302 
Surrenders & withdrawals(143)(400)(2,331)(287)
Cost of insurance & administrative charges(393)(297)(5,306)(405)
Benefit payments(282)(36)(4,195)(15)
Transfers between Divisions (including fixed account), net(320)11 (2,597)(238)
Increase (decrease) in net assets
derived from principal transactions(499)(415)(11,760)(643)
Total increase (decrease) in net assets(3,527)(2,331)(50,942)(3,900)
Net assets at December 31, 2022$15,340 $10,273 $162,565 $9,354 

The accompanying notes are an integral part of these financial statements.
37
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Changes in Net Assets
For the Year Ended December 31, 2022 and 2021
(Dollars in thousands)
VY® Invesco Growth and Income Portfolio - Service Class VY® JPMorgan Emerging Markets Equity Portfolio - Institutional Class VY® JPMorgan Small Cap Core Equity Portfolio - Institutional Class VY® T. Rowe Price Capital Appreciation Portfolio - Institutional Class
Net assets at January 1, 2021$8,906 $43,900 $36,302 $104,489 
Increase (decrease) in net assets
Operations:
Net investment income (loss)106 (178)(65)982 
Total realized gain (loss) on investments
and capital gains distributions(65)5,617 2,156 15,149 
Net change in unrealized appreciation
(depreciation) of investments2,473 (9,769)4,393 3,832 
Net increase (decrease) in net assets resulting from operations2,514 (4,330)6,484 19,963 
Changes from principal transactions:
Premiums276 1,051 934 4,699 
Surrenders & withdrawals(228)(703)(992)(5,133)
Cost of insurance & administrative charges(310)(989)(1,025)(4,185)
Benefit payments(16)(94)(269)(1,679)
Transfers between Divisions (including fixed account), net709 53 (1,172)7,968 
Increase (decrease) in net assets
derived from principal transactions431 (682)(2,524)1,670 
Total increase (decrease) in net assets2,945 (5,012)3,960 21,633 
Net assets at December 31, 202111,851 38,888 40,262 126,122 
Increase (decrease) in net assets
Operations:
Net investment income (loss)101 (128)(179)1,397 
Total realized gain (loss) on investments
and capital gains distributions1,270 8,314 5,416 13,612 
Net change in unrealized appreciation
(depreciation) of investments(2,091)(18,221)(12,525)(30,171)
Net increase (decrease) in net assets resulting from operations(720)(10,035)(7,288)(15,162)
Changes from principal transactions:
Premiums181 874 789 4,288 
Surrenders & withdrawals(243)(531)(1,070)(3,124)
Cost of insurance & administrative charges(328)(878)(1,056)(4,340)
Benefit payments(18)(357)(137)(1,391)
Transfers between Divisions (including fixed account), net(479)376 (256)(2,367)
Increase (decrease) in net assets
derived from principal transactions(887)(516)(1,730)(6,934)
Total increase (decrease) in net assets(1,607)(10,551)(9,018)(22,096)
Net assets at December 31, 2022$10,244 $28,337 $31,244 $104,026 




The accompanying notes are an integral part of these financial statements.
38
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Changes in Net Assets
For the Year Ended December 31, 2022 and 2021
(Dollars in thousands)
VY® T. Rowe Price Equity Income Portfolio - Institutional Class Voya Global Bond Portfolio - Service ClassVoya International High Dividend Low Volatility Portfolio - Initial ClassVoya Solution Moderately Aggressive Portfolio - Initial Class
Net assets at January 1, 2021$28,934 $14,252 $11,165 $2,609 
Increase (decrease) in net assets
Operations:
Net investment income (loss)457 303 228 51 
Total realized gain (loss) on investments
and capital gains distributions(774)457 (57)43 
Net change in unrealized appreciation
(depreciation) of investments7,331 (1,502)1,087 365 
Net increase (decrease) in net assets resulting from operations7,014 (742)1,258 459 
Changes from principal transactions:
Premiums713 339 449 334 
Surrenders & withdrawals(616)(293)(439)(64)
Cost of insurance & administrative charges(788)(345)(449)(79)
Benefit payments(95)(28)(264)— 
Transfers between Divisions (including fixed account), net(2,783)67 1,186 (83)
Increase (decrease) in net assets
derived from principal transactions(3,569)(260)483 108 
Total increase (decrease) in net assets3,445 (1,002)1,741 567 
Net assets at December 31, 202132,379 13,250 12,906 3,176 
Increase (decrease) in net assets
Operations:
Net investment income (loss)542 246 447 97 
Total realized gain (loss) on investments
and capital gains distributions1,226 (199)(694)423 
Net change in unrealized appreciation
(depreciation) of investments(2,946)(2,516)(887)(1,105)
Net increase (decrease) in net assets resulting from operations(1,178)(2,469)(1,134)(585)
Changes from principal transactions:
Premiums649 289 344 224 
Surrenders & withdrawals(541)(185)(205)(75)
Cost of insurance & administrative charges(874)(361)(526)(74)
Benefit payments(52)(107)(30)(86)
Transfers between Divisions (including fixed account), net(1,368)(4)(762)(35)
Increase (decrease) in net assets
derived from principal transactions(2,186)(368)(1,179)(46)
Total increase (decrease) in net assets(3,364)(2,837)(2,313)(631)
Net assets at December 31, 2022$29,015 $10,413 $10,593 $2,545 




The accompanying notes are an integral part of these financial statements.
39
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Changes in Net Assets
For the Year Ended December 31, 2022 and 2021
(Dollars in thousands)


VY® American Century Small-Mid Cap Value Portfolio - Initial ClassVY® Baron Growth Portfolio - Initial ClassVY® Columbia Small Cap Value II Portfolio - Initial ClassVY® Invesco Comstock Portfolio - Initial Class
Net assets at January 1, 2021$46 $16,144 $8,340 $10,201 
Increase (decrease) in net assets
Operations:
Net investment income (loss)1 (49)11 166 
Total realized gain (loss) on investments
and capital gains distributions— 1,275 204 (191)
Net change in unrealized appreciation
(depreciation) of investments12 1,737 2,589 3,256 
Net increase (decrease) in net assets resulting from operations13 2,963 2,804 3,231 
Changes from principal transactions:
Premiums— 415 251 581 
Surrenders & withdrawals— (596)(129)(582)
Cost of insurance & administrative charges(1)(521)(383)(488)
Benefit payments— (105)(19)(296)
Transfers between Divisions (including fixed account), net(1)(410)(1,153)(713)
Increase (decrease) in net assets
derived from principal transactions(2)(1,217)(1,433)(1,498)
Total increase (decrease) in net assets11 1,746 1,371 1,733 
Net assets at December 31, 202157 17,890 9,711 11,934 
Increase (decrease) in net assets
Operations:
Net investment income (loss)1 (39)(5)183 
Total realized gain (loss) on investments
and capital gains distributions9 1,046 1,506 292 
Net change in unrealized appreciation
(depreciation) of investments(13)(5,162)(2,880)(434)
Net increase (decrease) in net assets resulting from operations(3)(4,155)(1,379)41 
Changes from principal transactions:
Premiums— 343 196 506 
Surrenders & withdrawals— (435)(253)(714)
Cost of insurance & administrative charges(1)(545)(402)(553)
Benefit payments— (20)(3)(28)
Transfers between Divisions (including fixed account), net— (655)(305)356 
Increase (decrease) in net assets
derived from principal transactions(1)(1,312)(767)(433)
Total increase (decrease) in net assets(4)(5,467)(2,146)(392)
Net assets at December 31, 2022$53 $12,423 $7,565 $11,542 


The accompanying notes are an integral part of these financial statements.
40
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Changes in Net Assets
For the Year Ended December 31, 2022 and 2021
(Dollars in thousands)




VY® Invesco Equity and Income Portfolio - Initial ClassVY® Invesco Global Portfolio - Initial ClassVY® JPMorgan Mid Cap Value Portfolio - Initial ClassVY® T. Rowe Price Diversified Mid Cap Growth Portfolio - Initial Class
Net assets at January 1, 2021$9,396 $16,772 $12,560 $49,858 
Increase (decrease) in net assets
Operations:
Net investment income (loss)124 (50)71 (272)
Total realized gain (loss) on investments
and capital gains distributions191 1,692 370 9,192 
Net change in unrealized appreciation
(depreciation) of investments1,403 750 3,136 (2,511)
Net increase (decrease) in net assets resulting from operations1,718 2,392 3,577 6,409 
Changes from principal transactions:
Premiums359 562 — 908 
Surrenders & withdrawals(231)(592)(427)(870)
Cost of insurance & administrative charges(360)(498)(216)(1,363)
Benefit payments(221)(46)(155)(323)
Transfers between Divisions (including fixed account), net(38)(638)(268)(1,241)
Increase (decrease) in net assets
derived from principal transactions(491)(1,212)(1,066)(2,889)
Total increase (decrease) in net assets1,227 1,180 2,511 3,520 
Net assets at December 31, 202110,623 17,952 15,071 53,378 
Increase (decrease) in net assets
Operations:
Net investment income (loss)144 (37)99 (224)
Total realized gain (loss) on investments
and capital gains distributions1,342 1,936 1,963 11,087 
Net change in unrealized appreciation
(depreciation) of investments(2,315)(7,668)(3,352)(24,440)
Net increase (decrease) in net assets resulting from operations(829)(5,769)(1,290)(13,577)
Changes from principal transactions:
Premiums349 509 — 838 
Surrenders & withdrawals(167)(642)(479)(901)
Cost of insurance & administrative charges(384)(470)(248)(1,345)
Benefit payments(39)(20)(10)(173)
Transfers between Divisions (including fixed account), net(380)194 (122)1,199 
Increase (decrease) in net assets
derived from principal transactions(621)(429)(859)(382)
Total increase (decrease) in net assets(1,450)(6,198)(2,149)(13,959)
Net assets at December 31, 2022$9,173 $11,754 $12,922 $39,419 
The accompanying notes are an integral part of these financial statements.
41
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Changes in Net Assets
For the Year Ended December 31, 2022 and 2021
(Dollars in thousands)
Voya Strategic Allocation Conservative Portfolio - Class IVoya Strategic Allocation Growth Portfolio - Class IVoya Strategic Allocation Moderate Portfolio - Class IVoya Growth and Income Portfolio - Class I
Net assets at January 1, 2021$68 $236 $595 $10,293 
Increase (decrease) in net assets
Operations:
Net investment income (loss)1 5 13 88 
Total realized gain (loss) on investments
and capital gains distributions1 11 115 5,207 
Net change in unrealized appreciation
(depreciation) of investments4 25 (61)(2,427)
Net increase (decrease) in net assets resulting from operations6 41 67 2,868 
Changes from principal transactions:
Premiums— — — 223 
Surrenders & withdrawals— (3)(1)(88)
Cost of insurance & administrative charges(3)(6)(284)(370)
Benefit payments— — — (2)
Transfers between Divisions (including fixed account), net— (1)— (13)
Increase (decrease) in net assets
derived from principal transactions(3)(10)(285)(250)
Total increase (decrease) in net assets3 31 (218)2,618 
Net assets at December 31, 202171 267 377 12,911 
Increase (decrease) in net assets
Operations:
Net investment income (loss)2 7 7 93 
Total realized gain (loss) on investments
and capital gains distributions5 31 24 776 
Net change in unrealized appreciation
(depreciation) of investments(18)(90)(83)(2,723)
Net increase (decrease) in net assets resulting from operations(11)(52)(52)(1,854)
Changes from principal transactions:
Premiums— — — 125 
Surrenders & withdrawals— (1)(5)(18)
Cost of insurance & administrative charges(4)(6)(225)(418)
Benefit payments(9)— — (6)
Transfers between Divisions (including fixed account), net— — — (857)
Increase (decrease) in net assets
derived from principal transactions(13)(7)(230)(1,174)
Total increase (decrease) in net assets(24)(59)(282)(3,028)
Net assets at December 31, 2022$47 $208 $95 $9,883 




The accompanying notes are an integral part of these financial statements.
42
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Changes in Net Assets
For the Year Ended December 31, 2022 and 2021
(Dollars in thousands)
Voya Global High Dividend Low Volatility Portfolio - Class IVoya Index Plus LargeCap Portfolio - Class IVoya Index Plus MidCap Portfolio - Class IVoya Index Plus SmallCap Portfolio - Class I
Net assets at January 1, 2021$12,694 $31,505 $11,317 $7,601 
Increase (decrease) in net assets
Operations:
Net investment income (loss)323 206 83 35 
Total realized gain (loss) on investments
and capital gains distributions409 3,684 954 (14)
Net change in unrealized appreciation
(depreciation) of investments1,883 5,021 2,138 2,060 
Net increase (decrease) in net assets resulting from operations2,615 8,911 3,175 2,081 
Changes from principal transactions:
Premiums596 212 383 164 
Surrenders & withdrawals(448)(175)(325)(264)
Cost of insurance & administrative charges(562)(603)(387)(260)
Benefit payments(43)(17)(12)(4)
Transfers between Divisions (including fixed account), net(532)(650)(109)(607)
Increase (decrease) in net assets
derived from principal transactions(989)(1,233)(450)(971)
Total increase (decrease) in net assets1,626 7,678 2,725 1,110 
Net assets at December 31, 202114,320 39,183 14,042 8,711 
Increase (decrease) in net assets
Operations:
Net investment income (loss)274 118 75 46 
Total realized gain (loss) on investments
and capital gains distributions860 8,887 2,677 899 
Net change in unrealized appreciation
(depreciation) of investments(1,838)(16,311)(4,921)(2,249)
Net increase (decrease) in net assets resulting from operations(704)(7,306)(2,169)(1,304)
Changes from principal transactions:
Premiums563 188 366 180 
Surrenders & withdrawals(858)(416)(272)(281)
Cost of insurance & administrative charges(554)(628)(434)(302)
Benefit payments(24)(41)(23)(24)
Transfers between Divisions (including fixed account), net(2,455)(2,389)(778)975 
Increase (decrease) in net assets
derived from principal transactions(3,328)(3,286)(1,141)548 
Total increase (decrease) in net assets(4,032)(10,592)(3,310)(756)
Net assets at December 31, 2022$10,288 $28,591 $10,732 $7,955 




The accompanying notes are an integral part of these financial statements.
43
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Changes in Net Assets
For the Year Ended December 31, 2022 and 2021
(Dollars in thousands)
Voya International Index Portfolio - Class I*Voya Russell™ Large Cap Growth Index Portfolio - Class IVoya Russell™ Large Cap Index Portfolio - Class IVoya Russell™ Large Cap Value Index Portfolio - Class I
Net assets at January 1, 2021$— $58,477 $17,861 $7,990 
Increase (decrease) in net assets
Operations:
Net investment income (loss)— (50)139 152 
Total realized gain (loss) on investments
and capital gains distributions— 6,383 1,653 483 
Net change in unrealized appreciation
(depreciation) of investments— 10,415 2,505 1,091 
Net increase (decrease) in net assets resulting from operations— 16,748 4,297 1,726 
Changes from principal transactions:
Premiums— 1,375 226 272 
Surrenders & withdrawals— (2,352)(334)(332)
Cost of insurance & administrative charges— (2,146)(310)(270)
Benefit payments— (422)(4)(22)
Transfers between Divisions (including fixed account), net— (514)(2,133)(1,493)
Increase (decrease) in net assets
derived from principal transactions— (4,059)(2,555)(1,845)
Total increase (decrease) in net assets— 12,689 1,742 (119)
Net assets at December 31, 2021— 71,166 19,603 7,871 
Increase (decrease) in net assets
Operations:
Net investment income (loss)(101)(85)51 66 
Total realized gain (loss) on investments
and capital gains distributions72 9,436 2,739 373 
Net change in unrealized appreciation
(depreciation) of investments2,243 (30,030)(6,482)(937)
Net increase (decrease) in net assets resulting from operations2,214 (20,679)(3,692)(498)
Changes from principal transactions:
Premiums381 1,216 192 177 
Surrenders & withdrawals(240)(1,932)(2,726)(169)
Cost of insurance & administrative charges(516)(2,145)(329)(270)
Benefit payments(241)(1,968)(40)(4)
Transfers between Divisions (including fixed account), net37,429 (1,766)(952)(403)
Increase (decrease) in net assets
derived from principal transactions36,813 (6,595)(3,855)(669)
Total increase (decrease) in net assets39,027 (27,274)(7,547)(1,167)
Net assets at December 31, 2022$39,027 $43,892 $12,056 $6,704 


*This fund was opened on July 8, 2022.

The accompanying notes are an integral part of these financial statements.
44
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Changes in Net Assets
For the Year Ended December 31, 2022 and 2021
(Dollars in thousands)
Voya Russell™ Mid Cap Growth Index Portfolio - Class IVoya Russell™ Small Cap Index Portfolio - Class IVoya Small Company Portfolio - Class SVoya U.S. Bond Index Portfolio - Class I
Net assets at January 1, 2021$7,271 $6,416 $10,605 $13,697 
Increase (decrease) in net assets
Operations:
Net investment income (loss)(10)24 (56)216 
Total realized gain (loss) on investments
and capital gains distributions989 260 106 256 
Net change in unrealized appreciation
(depreciation) of investments(159)629 1,383 (791)
Net increase (decrease) in net assets resulting from operations820 913 1,433 (319)
Changes from principal transactions:
Premiums215 230 209 330 
Surrenders & withdrawals(62)(108)(126)(271)
Cost of insurance & administrative charges(188)(191)(301)(401)
Benefit payments(144)(2)(56)(92)
Transfers between Divisions (including fixed account), net(110)335 (535)(348)
Increase (decrease) in net assets
derived from principal transactions(289)264 (809)(782)
Total increase (decrease) in net assets531 1,177 624 (1,101)
Net assets at December 31, 20217,802 7,593 11,229 12,596 
Increase (decrease) in net assets
Operations:
Net investment income (loss)(19)32 (47)248 
Total realized gain (loss) on investments
and capital gains distributions612 419 2,115 (217)
Net change in unrealized appreciation
(depreciation) of investments(2,646)(2,036)(3,963)(2,041)
Net increase (decrease) in net assets resulting from operations(2,053)(1,585)(1,895)(2,010)
Changes from principal transactions:
Premiums195 151 163 237 
Surrenders & withdrawals(216)(71)(352)(303)
Cost of insurance & administrative charges(175)(158)(315)(339)
Benefit payments(7)(5)(19)(49)
Transfers between Divisions (including fixed account), net(144)500 (333)3,409 
Increase (decrease) in net assets
derived from principal transactions(347)417 (856)2,955 
Total increase (decrease) in net assets(2,400)(1,168)(2,751)945 
Net assets at December 31, 2022$5,402 $6,425 $8,478 $13,541 

The accompanying notes are an integral part of these financial statements.
45
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Statements of Changes in Net Assets
For the Year Ended December 31, 2022 and 2021
(Dollars in thousands)
Voya MidCap Opportunities Portfolio - Class IVoya SmallCap Opportunities Portfolio - Class I
Net assets at January 1, 2021$21,366 $8,210 
Increase (decrease) in net assets
Operations:
Net investment income (loss)(80)(29)
Total realized gain (loss) on investments
and capital gains distributions3,698 776 
Net change in unrealized appreciation
(depreciation) of investments(1,219)(447)
Net increase (decrease) in net assets resulting from operations2,399 300 
Changes from principal transactions:
Premiums413 208 
Surrenders & withdrawals(1,028)(156)
Cost of insurance & administrative charges(650)(208)
Benefit payments(132)(10)
Transfers between Divisions (including fixed account), net(204)(1,269)
Increase (decrease) in net assets
derived from principal transactions(1,601)(1,435)
Total increase (decrease) in net assets798 (1,135)
Net assets at December 31, 202122,164 7,075 
Increase (decrease) in net assets
Operations:
Net investment income (loss)(67)(23)
Total realized gain (loss) on investments
and capital gains distributions9,454 857 
Net change in unrealized appreciation
(depreciation) of investments(14,991)(2,544)
Net increase (decrease) in net assets resulting from operations(5,604)(1,710)
Changes from principal transactions:
Premiums384 168 
Surrenders & withdrawals(328)(54)
Cost of insurance & administrative charges(655)(207)
Benefit payments(23)(7)
Transfers between Divisions (including fixed account), net1,195 1,049 
Increase (decrease) in net assets
derived from principal transactions573 949 
Total increase (decrease) in net assets(5,031)(761)
Net assets at December 31, 2022$17,133 $6,314 
The accompanying notes are an integral part of these financial statements.
46
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
1.Organization
Security Life of Denver Insurance Company Security Life Separate Account L1 (the “Account”) was established on November 3, 1993, by Security Life of Denver Insurance Company (“SLD” or the “Company”) to support the operations of variable universal life policies (“Policies”). The Company is an indirect, wholly owned subsidiary of Resolution Life U.S. Holdings, Inc. ("Resolution Life US"), a Delaware corporation.

Prior to January 4, 2021, the Company was an indirect, wholly owned subsidiary of Voya Financial, Inc. ("Voya Financial"). On January 4, 2021, Voya Financial consummated a series of transactions pursuant to a Master Transaction Agreement entered into on December 18, 2019 with Resolution Life US, pursuant to which Resolution Life US acquired all of the shares of the capital stock of several subsidiaries of Voya Financial.

The Account supports the operations of the FirstLine Variable Universal Life, FirstLine II Variable Universal Life, Variable Survivorship Universal Life, Corporate Benefits Variable Universal Life, Strategic Investor Variable Universal Life, Asset Portfolio Manager Variable Universal Life, Estate Designer Variable Universal Life, Asset Accumulator Variable Universal Life, Voya Corporate Advantage Variable Universal Life, Voya Corporate Variable Universal Life, Voya VUL-CV, Voya VUL-ECV, Voya SVUL-CV, and Voya VUL-DB policies (collectively, “Policies”) offered by the Company. The Account also includes Strategic Advantage, which is discontinued.

The Account is registered as a unit investment trust with the Securities Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended. SLD provides for variable accumulation and benefits under the Policies by crediting premiums to one or more divisions within the Account or the SLD fixed account (an investment option in the Company’s general account), as directed by the policyholders. The portion of the Account’s assets applicable to Policies will not be charged with liabilities arising out of any other business SLD may conduct, but obligations of the Account, including the promise to make benefit payments, are obligations of SLD. Under applicable insurance law, the assets and liabilities of the Account are clearly identified and distinguished from the other assets and liabilities of SLD.

At December 31, 2022, the Account had 62 investment divisions (the “Divisions”) which invest in independently managed mutual funds. The assets in each Division are invested in shares of a designated Fund (“Fund”) of various investment trusts (the “Trusts”).





47
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
The Divisions with asset balances at December 31, 2022, and related Trusts are as follows:
AIM Variable Insurance Funds:Voya Investors Trust: (continued)
Invesco V.I. Core Equity Fund - Series IVY® JPMorgan Emerging Markets Equity Portfolio - Institutional Class
American Funds Insurance Series®:VY® JPMorgan Small Cap Core Equity Portfolio - Institutional Class
Growth Fund - Class 2VY® T. Rowe Price Capital Appreciation Portfolio - Institutional Class
Growth-Income Fund - Class 2VY® T. Rowe Price Equity Income Portfolio - Institutional Class
International Fund - Class 2Voya Partners, Inc.:
BlackRock Variable Series Funds, Inc.:Voya Global Bond Portfolio - Service Class
BlackRock Global Allocation V.I. Fund - Class IIIVoya International High Dividend Low Volatility Portfolio - Initial Class
Fidelity® Variable Insurance Products II:Voya Solution Moderately Aggressive Portfolio - Initial Class
Fidelity® VIP Contrafund® Portfolio - Service ClassVY® American Century Small-Mid Cap Value Portfolio - Initial Class
Fidelity® Variable Insurance Products V:VY® Baron Growth Portfolio - Initial Class
Fidelity® VIP Investment Grade Bond Portfolio - Initial ClassVY® Columbia Small Cap Value II Portfolio - Initial Class
Fidelity® Variable Insurance Products:VY® Invesco Comstock Portfolio - Initial Class
Fidelity® VIP Equity-Income Portfolio - Service ClassVY® Invesco Equity and Income Portfolio - Initial Class
M Fund, Inc.:VY® Invesco Global Portfolio - Initial Class
M Capital Appreciation FundVY® JPMorgan Mid Cap Value Portfolio - Initial Class
M International Equity FundVY® T. Rowe Price Diversified Mid Cap Growth Portfolio - Initial Class
M Large Cap Growth FundVoya Strategic Allocation Portfolios, Inc.:
M Large Cap Value FundVoya Strategic Allocation Conservative Portfolio - Class I
Neuberger Berman Advisers Management Trust®:Voya Strategic Allocation Growth Portfolio - Class I
Neuberger Berman Advisers Management Trust® Sustainable Equity Portfolio -Class I SharesVoya Strategic Allocation Moderate Portfolio - Class I
Van Eck VIP Trust:Voya Variable Funds:
VanEck VIP Global Resources Fund - Initial Class SharesVoya Growth and Income Portfolio - Class I
Voya Balanced Portfolio, Inc.:Voya Variable Portfolios, Inc.:
Voya Balanced Portfolio - Class IVoya Global High Dividend Low Volatility Portfolio - Class I
Voya Intermediate Bond Portfolio:Voya Index Plus LargeCap Portfolio - Class I
Voya Intermediate Bond Portfolio - Class IVoya Index Plus MidCap Portfolio - Class I
Voya Investors Trust:Voya Index Plus SmallCap Portfolio - Class I
Voya Global Perspectives® Portfolio - Class IVoya International Index Portfolio - Class I
Voya Government Liquid Assets Portfolio - Class IVoya Russell™ Large Cap Growth Index Portfolio - Class I
Voya Government Liquid Assets Portfolio - Service ClassVoya Russell™ Large Cap Index Portfolio - Class I
Voya High Yield Portfolio - Institutional ClassVoya Russell™ Large Cap Value Index Portfolio - Class I
Voya Large Cap Growth Portfolio - Institutional ClassVoya Russell™ Mid Cap Growth Index Portfolio - Class I
Voya Large Cap Value Portfolio - Institutional ClassVoya Russell™ Small Cap Index Portfolio - Class I
Voya Limited Maturity Bond Portfolio - Service ClassVoya Small Company Portfolio - Class S
Voya Retirement Growth Portfolio - Institutional ClassVoya U.S. Bond Index Portfolio - Class I
Voya Retirement Moderate Growth Portfolio - Institutional ClassVoya Variable Products Trust:
Voya Retirement Moderate Portfolio - Institutional ClassVoya MidCap Opportunities Portfolio - Class I
Voya U.S. Stock Index Portfolio - Institutional ClassVoya SmallCap Opportunities Portfolio - Class I
VY® CBRE Global Real Estate Portfolio - Service Class
VY® Invesco Growth and Income Portfolio - Service Class


48
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
The names of certain Divisions were changed during 2022. The following is a summary of current and former names for those Divisions:
Current NameFormer Name
Voya Investors Trust.:Voya Investors Trust.:
VY® CBRE Global Real Estate Portfolio - Service Class VY® Clarion Global Real Estate Portfolio - Service Class
During 2022, the following Division was closed to policyholders:
Voya Investors Trust:Fund Closure Date
VY® T. Rowe Price International Stock Portfolio - Institutional Class 7/8/2022
Voya International Index Portfolio - Class S7/8/2022

During 2022, the following Division was opened to policyholders:
Voya Investors Trust:Fund Open Date
Voya International Index Portfolio - Class I7/8/2022


Basis of Presentation

The Company's financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("US GAAP"). The principal accounting policies applied in the preparation of these consolidated financial statements are set out in Note 2.

2. Significant Accounting Policies
The following is a summary of the significant accounting policies of the Account:

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Investments

Investments are made in shares of a Fund and are recorded at fair value, determined by the net asset value per share of the respective Fund. Investment transactions in each Division are recorded on the trade date. Distributions of net investment income and capital gains from each Division are recognized on the ex-distribution date. Realized gains and losses on redemptions of the shares of the Division are determined on a first-in, first-out basis. The difference between cost and current fair value of investments owned on the day of measurement is recorded as unrealized appreciation or depreciation of investments.



49
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
Federal Income Taxes

Operations of the Account form a part of, and are taxed with, the total operations of SLD, which is taxed as a life insurance company under the Internal Revenue Code (“IRC”). Under the current provisions of the IRC, the Company does not expect to incur federal income taxes on the earnings of the Account to the extent the earnings are credited to policyholders. Accordingly, earnings and realized capital gains of the Account attributable to the policyholders are excluded in the determination of the federal income tax liability of SLD, and no charge is being made to the Account for federal income taxes for these amounts. The Company will review this tax accounting in the event of changes in the tax law. Such changes in the law may result in a charge for federal income taxes. Uncertain tax positions are assessed at the parent level on a consolidated basis, including taxes of the operations of the Separate Account.

Policyholder Reserves

Policyholder reserves of the Account are represented by net assets on the Statements of Assets and Liabilities and are equal to the aggregate account values of the policyholders invested in the Account Divisions. To the extent that benefits to be paid to the policyholders exceed their account values, SLD will contribute additional funds to the benefit proceeds. Conversely, if amounts allocated exceed amounts required, transfers may be made to SLD.

Changes from Principal Transactions

Included in Changes from principal transactions on the Statements of Changes in Net Assets are items which relate to policyholder activity, including premiums, surrenders and withdrawals, cost of insurance and administrative charges and benefit payments. Also included are transfers between the fixed account and the Divisions, transfers between Divisions, and transfers to (from) SLD related to gains and losses resulting from actual mortality experience (the full responsibility for which is assumed by SLD).

Subsequent Events

The Account has evaluated all events occurring after December 31, 2022 through April 21, 2023, the date the financial statements were available to be issued, to determine whether any event required either recognition or disclosure in the financial statements. The Account is not aware of any subsequent events that would have a material effect on the financial statements of the Account.

3.    Financial Instruments
The Account invests assets in shares of open-end mutual funds, which process orders to purchase and redeem shares on a daily basis at the fund's next computed net asset values (“NAV”). The fair value of the Account’s assets is based on the NAVs of mutual funds, which are obtained from the custodian and reflect the fair values of the mutual fund investments. The NAV is calculated daily upon close of the New York Stock Exchange and is based on the fair values of the underlying securities.

50
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
The Account’s assets are recorded at fair value on the Statements of Assets and Liabilities and are categorized as Level 1 as of December 31, 2022 based on the priority of the inputs to the valuation technique below. There were no transfers among the levels for the year ended December 31, 2022. The Account had no liabilities as of December 31, 2022.

The Account categorizes its financial instruments into a three-level hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument.

▪Level 1 - Unadjusted quoted prices for identical assets or liabilities in an active market. The Account defines an active market as a market in which transactions take place with sufficient frequency and volume to provide pricing information on an ongoing basis.
▪Level 2 - Quoted prices in markets that are not active or valuation techniques that require inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:
a.Quoted prices for similar assets or liabilities in active markets;
b.Quoted prices for identical or similar assets or liabilities in non-active markets;
c.Inputs other than quoted market prices that are observable; and
d.Inputs that are derived principally from or corroborated by observable market data through correlation or other means.
▪Level 3 - Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These valuations, whether derived internally or obtained from a third party, use critical assumptions that are not widely available to estimate market participant expectations in valuing the asset or liability.

4.    Charges and Fees
Under the terms of the Policies, certain charges and fees are incurred by the Policies to cover SLD’s expenses in connection with the issuance and administration of the Policies. Following is a summary of these charges and fees:

Premium Expense Charge

SLD deducts a premium charge for certain Policies ranging from 3.00% to 15.00% of each premium payment as defined in the Policies. These charges are assessed through the redemption of units.

Mortality and Expense Risk Charges

For FirstLine, FirstLine II, Strategic Advantage, Variable Survivorship, Estate Designer, and Strategic Investor Policies (collectively, Class A Policies), charges are made directly against the assets of the Account Divisions and are reflected daily in the computation of the unit values of the Divisions. A daily deduction, at an annual rate of up to 0.75% of the average daily net asset
51
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
value of each Division of the Account, is charged to cover these risks, as specified in the Policies. These charges are assessed through a reduction in unit values.

Other Policy Charges

For the Corporate Benefits, Asset Accumulator, Corporate VUL, VUL-CV, VUL-ECV, SVUL-CV, and VUL-DB Policies (collectively, Class B Policies) and Corporate Advantage VUL, a monthly deduction, at an annual rate of up to 0.60% of the policyholder account value, is charged. For Asset Portfolio Manager, a monthly deduction at an annual rate of up to 0.90% is charged. These charges are assessed through the redemption of units.

The monthly cost of insurance charge varies based on the insured’s sex, issue age, policy year, rate class, and the face amount of policies. The monthly amount charged for optional insurance benefits varies based on a number of factors and is defined in the Policies. These charges are assessed through the redemption of units.

The monthly administrative charge is based on an established amount per $1,000 of base insurance coverage or an established per month charge, as defined in the Policies. These charges are assessed through the redemption of units.

Other Policy Deductions

The Variable Universal Life Policies provide for certain deductions for sales and tax loads from premium payments received from the policyholders and for surrender charges and taxes from amounts paid to policyholders. Such deductions are taken after the redemption of units in the Account and are not included in the Account financial statements. These charges are assessed through the redemption of units.

Fees Waived by SLD

Certain charges and fees for various types of Contracts may be waived by SLD. SLD reserves the right to discontinue these waivers at its discretion or to conform with the changes in the law.

52
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
5.    Purchases and Sales of Investment Securities
The aggregate cost of purchases and proceeds from sales of investments for the year ended December 31, 2022 follow:
PurchasesSales
(Dollars in thousands)
AIM Variable Insurance Funds:
Invesco V.I. Core Equity Fund - Series I$844 $331 
American Funds Insurance Series®:
American Funds Insurance Series® Growth Fund - Class 214,068 4,619 
American Funds Insurance Series® Growth-Income Fund - Class 26,282 4,363 
American Funds Insurance Series® International Fund - Class 27,484 2,266 
BlackRock Variable Series Funds, Inc.:
BlackRock Global Allocation V.I. Fund - Class III1,261 1,039 
Fidelity® Variable Insurance Products II:
Fidelity® VIP Contrafund® Portfolio - Service Class2,390 3,101 
Fidelity® Variable Insurance Products V:
Fidelity® VIP Investment Grade Bond Portfolio - Initial Class13 6 
Fidelity® Variable Insurance Products:
Fidelity® VIP Equity-Income Portfolio - Service Class474 646 
M Fund, Inc.:
M Capital Appreciation Fund1,374 362 
M International Equity Fund876 852 
M Large Cap Growth Fund548 281 
M Large Cap Value Fund285 261 
Neuberger Berman Advisers Management Trust®:
Neuberger Berman Advisers Management Trust® Sustainable Equity Portfolio - Class I Shares244 157 
Van Eck VIP Trust:
VanEck VIP Global Resources Fund - Initial Class Shares7 37 
Voya Balanced Portfolio, Inc.:
Voya Balanced Portfolio - Class I2,339 1,173 
Voya Intermediate Bond Portfolio:
Voya Intermediate Bond Portfolio - Class I9,952 17,124 
Voya Investors Trust:
Voya Global Perspectives® Portfolio - Class I124 11 
Voya Government Liquid Assets Portfolio - Class I5,172 4,502 
Voya Government Liquid Assets Portfolio - Service Class11,670 6,858 
Voya High Yield Portfolio - Institutional Class1,425 2,603 
Voya Large Cap Growth Portfolio - Institutional Class18,954 4,658 
Voya Large Cap Value Portfolio - Institutional Class11,665 3,075 
Voya Limited Maturity Bond Portfolio - Service Class6,356 10,653 
Voya Retirement Growth Portfolio - Institutional Class5,132 1,180 
Voya Retirement Moderate Growth Portfolio - Institutional Class2,778 1,063 
Voya Retirement Moderate Portfolio - Institutional Class1,689 709 
Voya U.S. Stock Index Portfolio - Institutional Class21,285 14,505 
VY® CBRE Global Real Estate Portfolio - Service Class1,235 1,052 
VY® Invesco Growth and Income Portfolio - Service Class1,693 1,097 
VY® JPMorgan Emerging Markets Equity Portfolio - Institutional Class11,487 3,550 
VY® JPMorgan Small Cap Core Equity Portfolio - Institutional Class8,066 3,986 
53
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
PurchasesSales
(Dollars in thousands)
Voya Investors Trust (continued):
VY® T. Rowe Price Capital Appreciation Portfolio - Institutional Class$17,275 $9,340 
VY® T. Rowe Price Equity Income Portfolio - Institutional Class8,355 6,966 
Voya Partners, Inc.:
Voya Global Bond Portfolio - Service Class803 924 
Voya International High Dividend Low Volatility Portfolio - Initial Class1,985 2,718 
Voya Solution Moderately Aggressive Portfolio - Initial Class824 402 
VY® American Century Small-Mid Cap Value Portfolio - Initial Class10 2 
VY® Baron Growth Portfolio - Initial Class1,734 1,762 
VY® Columbia Small Cap Value II Portfolio - Initial Class3,055 2,605 
VY® Invesco Comstock Portfolio - Initial Class3,263 3,484 
VY® Invesco Equity and Income Portfolio - Initial Class1,716 823 
VY® Invesco Global Portfolio - Initial Class2,862 1,358 
VY® JPMorgan Mid Cap Value Portfolio - Initial Class2,310 918 
VY® T. Rowe Price Diversified Mid Cap Growth Portfolio - Initial Class17,807 8,113 
Voya Strategic Allocation Portfolios, Inc.:
Voya Strategic Allocation Conservative Portfolio - Class I7 13 
Voya Strategic Allocation Growth Portfolio - Class I36 8 
Voya Strategic Allocation Moderate Portfolio - Class I30 229 
Voya Variable Funds:
Voya Growth and Income Portfolio - Class I1,963 1,647 
Voya Variable Portfolios, Inc.:
Voya Global High Dividend Low Volatility Portfolio - Class I969 3,653 
Voya Index Plus LargeCap Portfolio - Class I8,075 3,735 
Voya Index Plus MidCap Portfolio - Class I5,675 4,056 
Voya Index Plus SmallCap Portfolio - Class I3,061 1,313 
Voya International Index Portfolio - Class I 38,492 1,780 
Voya Russell™ Large Cap Growth Index Portfolio - Class I6,042 8,140 
Voya Russell™ Large Cap Index Portfolio - Class I4,727 7,949 
Voya Russell™ Large Cap Value Index Portfolio - Class I1,437 2,040 
Voya Russell™ Mid Cap Growth Index Portfolio - Class I868 663 
Voya Russell™ Small Cap Index Portfolio - Class I1,801 840 
Voya Small Company Portfolio - Class S2,738 1,121 
Voya U.S. Bond Index Portfolio - Class I4,560 1,357 
Voya Variable Products Trust:
Voya MidCap Opportunities Portfolio - Class I12,683 1,264 
Voya SmallCap Opportunities Portfolio - Class I3,137 1,078 


54
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
6.    Changes in Units
The changes in units outstanding follow:
Year ended December 31
20222021
Units IssuedUnits RedeemedNet Increase
(Decrease)		Units IssuedUnits RedeemedNet Increase
(Decrease)
AIM Variable Insurance Funds:
Invesco V.I. Core Equity Fund - Series I 925 11,660 (10,735)— 11,724 (11,724)
American Funds Insurance Series®:
American Funds Insurance Series® Growth Fund - Class 2 61,626 79,742 (18,116)0 79,072 (79,072)
American Funds Insurance Series® Growth-Income Fund - Class 2 44,090 102,842 (58,753)— 64,062 (64,062)
American Funds Insurance Series® International Fund - Class 2 87,477 95,382 (7,905)6,430 0 6,430 
BlackRock Variable Series Funds, Inc.:
BlackRock Global Allocation V.I. Fund - Class III 62,404 59,935 2,470 0 17,512 (17,512)
Fidelity® Variable Insurance Products II:
Fidelity® VIP Contrafund® Portfolio - Service Class 39,879 78,957 (39,077)0 48,059 (48,059)
Fidelity® Variable Insurance Products V:
Fidelity® VIP Investment Grade Bond Portfolio - Initial Class 54 358 (304)— 217 (217)
Fidelity® Variable Insurance Products:
Fidelity® VIP Equity-Income Portfolio - Service Class 9,873 22,410 (12,537)25,772 0 25,772 
M Fund, Inc.:
M Capital Appreciation Fund 6,736 6,386 350 — 10,218 (10,218)
M International Equity Fund 37,196 42,793 (5,597)0 12,826 (12,826)
M Large Cap Growth Fund 7,098 6,182 916 — 4,737 (4,737)
M Large Cap Value Fund 5,773 8,063 (2,291)0 5,144 (5,144)
Neuberger Berman Advisers Management Trust®:
Neuberger Berman Advisers Management Trust® Sustainable Equity Portfolio - Class I Shares 3,051 4,176 (1,124)— 3,818 (3,818)
Van Eck VIP Trust:
VanEck VIP Global Resources Fund - Initial Class Shares 52 920 (868)0 737 (737)
Voya Balanced Portfolio, Inc.:
Voya Balanced Portfolio - Class I 47,551 63,911 (16,360)— 61,810 (61,810)
55
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
Year ended December 31
20222021
Units IssuedUnits RedeemedNet Increase
(Decrease)		Units IssuedUnits RedeemedNet Increase
(Decrease)
Voya Intermediate Bond Portfolio:
Voya Intermediate Bond Portfolio - Class I 508,658 947,181 (438,523)32,522 0 32,522 
Voya Investors Trust:
Voya Global Perspectives® Portfolio - Class I 5,399 2,056 3,344 — 25 (25)
Voya Government Liquid Assets Portfolio - Class I 526,370 476,161 50,209 0 481,932 (481,932)
Voya Government Liquid Assets Portfolio - Service Class 917,761 590,990 326,771 — 106,175 (106,175)
Voya High Yield Portfolio - Institutional Class 85,283 300,867 (215,584)16,454 — 16,454 
Voya Large Cap Growth Portfolio - Institutional Class 59,298 96,747 (37,449)0 89,517 (89,517)
Voya Large Cap Value Portfolio - Institutional Class 66,334 116,351 (50,016)— 55,316 (55,316)
Voya Limited Maturity Bond Portfolio - Service Class 390,379 754,712 (364,333)183,555 0 183,555 
Voya Retirement Growth Portfolio - Institutional Class 71,284 86,155 (14,870)— 177,085 (177,085)
Voya Retirement Moderate Growth Portfolio - Institutional Class 38,332 59,755 (21,423)898 0 898 
Voya Retirement Moderate Portfolio - Institutional Class 18,760 38,860 (20,100)46,663 — 46,663 
Voya U.S. Stock Index Portfolio - Institutional Class 117,659 369,703 (252,044)0 354,204 (354,204)
VY® CBRE Global Real Estate Portfolio - Service Class 43,725 82,285 (38,559)— 49,296 (49,296)
VY® Invesco Growth and Income Portfolio - Service Class 10,100 35,304 (25,203)13,230 0 13,230 
VY® JPMorgan Emerging Markets Equity Portfolio - Institutional Class 193,910 214,044 (20,134)— 24,048 (24,048)
VY® JPMorgan Small Cap Core Equity Portfolio - Institutional Class 63,628 101,155 (37,527)— 45,224 (45,224)
VY® T. Rowe Price Capital Appreciation Portfolio - Institutional Class 84,323 178,453 (94,130)28,862 — 28,862 
VY® T. Rowe Price Equity Income Portfolio - Institutional Class 115,971 163,424 (47,453)— 79,684 (79,684)
Voya Partners, Inc.:
Voya Global Bond Portfolio - Service Class 55,483 80,659 (25,175)— 12,063 (12,063)
Voya International High Dividend Low Volatility Portfolio - Initial Class 125,092 200,789 (75,697)29,926 — 29,926 
Voya Solution Moderately Aggressive Portfolio - Initial Class 25,547 28,321 (2,774)6,331 — 6,331 
VY® American Century Small-Mid Cap Value Portfolio - Initial Class — 33 (32)— 28 (28)
VY® Baron Growth Portfolio - Initial Class 15,671 39,668 (23,997)— 24,287 (24,287)
VY® Columbia Small Cap Value II Portfolio - Initial Class 72,286 100,390 (28,104)— 44,997 (44,997)
VY® Invesco Comstock Portfolio - Initial Class 83,440 91,892 (8,452)— 36,165 (36,165)
VY® Invesco Equity and Income Portfolio - Initial Class 12,366 30,224 (17,858)— 13,518 (13,518)
VY® Invesco Global Portfolio - Initial Class 38,054 51,055 (13,001)— 26,354 (26,354)
56
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
Year ended December 31
20222021
Units IssuedUnits RedeemedNet Increase
(Decrease)		Units IssuedUnits RedeemedNet Increase
(Decrease)
Voya Partners, Inc. (continued):
VY® JPMorgan Mid Cap Value Portfolio - Initial Class 666 13,894 (13,228)— 16,863 (16,863)
VY® T. Rowe Price Diversified Mid Cap Growth Portfolio - Initial Class 153,329 168,264 (14,936)— 46,605 (46,605)
Voya Strategic Allocation Portfolios, Inc.:
Voya Strategic Allocation Conservative Portfolio - Class I 18 625 (607)— 115 (115)
Voya Strategic Allocation Growth Portfolio - Class I 14 268 (254)— 294 (294)
Voya Strategic Allocation Moderate Portfolio - Class I 3 8,460 (8,457)— 9,790 (9,790)
Voya Variable Funds:
Voya Growth and Income Portfolio - Class I 17,941 55,406 (37,464)— 8,632 (8,632)
Voya Variable Portfolios, Inc.:
Voya Global High Dividend Low Volatility Portfolio - Class I 52,803 265,591 (212,788)— 60,351 (60,351)
Voya Index Plus LargeCap Portfolio - Class I 14,907 86,156 (71,249)— 27,820 (27,820)
Voya Index Plus MidCap Portfolio - Class I 73,447 102,545 (29,097)— 3,777 (3,777)
Voya Index Plus SmallCap Portfolio - Class I 48,533 34,760 13,772 — 21,062 (21,062)
Voya International Index Portfolio - Class I 3,975,729 215,888 3,759,842 — — — 
Voya Russell™ Large Cap Growth Index Portfolio - Class I 39,820 131,805 (91,985)— 54,417 (54,417)
Voya Russell™ Large Cap Index Portfolio - Class I 73,321 138,603 (65,281)0 44,109 (44,109)
Voya Russell™ Large Cap Value Index Portfolio - Class I 33,332 50,884 (17,552)0 43,334 (43,334)
Voya Russell™ Mid Cap Growth Index Portfolio - Class I 8,674 14,345 (5,671)— 4,402 (4,402)
Voya Russell™ Small Cap Index Portfolio - Class I 46,894 31,316 15,578 8,722 0 8,722 
Voya Small Company Portfolio - Class S15,578 47,757 (32,179)0 27,968 (27,968)
Voya U.S. Bond Index Portfolio - Class I 322,848 109,010 213,838 — 55,977 (55,977)
Voya Variable Products Trust:
Voya MidCap Opportunities Portfolio - Class I 44,912 31,620 13,292 — 24,125 (24,125)
Voya SmallCap Opportunities Portfolio - Class I 74,980 41,734 33,247 — 41,614 (41,614)

57
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
7.    Financial Highlights
A summary of unit values, units outstanding, and net assets for Policies, expense ratios, excluding expenses of underlying Funds, investment income ratios, and total return for the years ended December 31, 2022, 2021, 2020, 2019, and 2018, follows:

FundInvestment
InceptionUnitsUnit Fair ValueNet AssetsIncome
Expense RatioC
Total ReturnD
DateA
(000's)(lowest to highest)(000's)
RatioB
(lowest to highest)(lowest to highest)
Invesco V.I. Core Equity Fund - Series I
 2022 178$25.94to$29.40$4,6560.86%0.00%to0.75%-21.13%to-20.54%
 2021 188$32.89to$37.00$6,2580.66%0.00%to0.75%26.79%to27.72%
 2020 200$25.94to$28.97$5,2401.23%0.00%to0.75%12.98%to13.88%
 2019 217$22.96to$25.44$5,0220.96%0.00%to0.75%27.98%to28.94%
 2018 241$17.94to$19.73$4,3610.92%0.00%to0.75%-10.08%to-9.37%
American Funds Insurance Series® Growth Fund - Class 2
 2022 900$67.94to$78.76$67,6500.30%0.00%to0.75%-30.45%to-29.94%
 2021 918$79.38to$112.41$98,6660.22%0.00%to0.75%21.07%to21.99%
 2020 997$65.07to$92.15$88,1730.30%0.00%to0.75%50.94%to52.09%
 2019 1,153$42.79to$60.59$67,1820.75%0.00%to0.75%29.82%to30.78%
 2018 1,278$32.72to$46.33$57,0280.45%0.00%to0.75%-1.01%to-0.24%
American Funds Insurance Series® Growth-Income Fund - Class 2
 2022 814$41.31to$57.33$44,8051.19%0.00%to0.75%-17.11%to-16.48%
 2021 873$49.46to$68.65$57,5501.13%0.00%to0.75%23.16%to24.10%
 2020 937$39.86to$55.32$49,9361.27%0.00%to0.75%12.70%to13.56%
 2019 964$35.10to$48.72$45,3081.68%0.00%to0.75%25.20%to26.12%
 2018 1,048$27.83to$38.63$39,0511.49%0.00%to0.75%-2.53%to-1.78%
American Funds Insurance Series® International Fund - Class 2
 2022 932$23.35to$38.14$33,7631.63%0.00%to0.75%-21.37%to-20.77%
 2021 940$29.47to$48.14$43,1382.50%0.00%to0.75%-2.22%to-1.49%
 2020 933$29.92to$48.87$43,4650.58%0.00%to0.75%13.11%to13.98%
 2019 1,037$26.25to$42.88$42,4801.43%0.00%to0.75%21.95%to22.89%
 2018 1,174$21.36to$34.90$39,2971.60%0.00%to0.75%-13.79%to-13.12%


58
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
FundInvestment
InceptionUnitsUnit Fair ValueNet AssetsIncome
Expense RatioC
Total ReturnD
DateA
(000's)(lowest to highest)(000's)
RatioB
(lowest to highest)(lowest to highest)
BlackRock Global Allocation V.I. Fund - Class III
 2022 499$20.57to$22.79$11,1750.00%0.00%to0.75%-16.69%to-16.06%
 2021 497$24.69to$27.15$13,2980.83%0.00%to0.75%5.60%to6.39%
 2020 514$23.38to$25.52$12,9481.23%0.00%to0.75%19.84%to20.72%
 2019 535$19.51to$21.14$11,1791.26%0.00%to0.75%16.83%to17.77%
 2018 596$16.70to$17.95$10,5690.92%0.00%to0.75%-8.24%to-7.57%
Fidelity® VIP Contrafund® Portfolio - Service Class
 2022 517$41.96to$47.92$23,5970.36%0.00%to0.75%-26.92%to-26.38%
 2021 556$57.42to$65.09$34,4520.05%0.00%to0.75%26.75%to27.72%
 2020 604$45.30to$50.97$29,4790.14%0.00%to0.75%29.47%to30.43%
 2019 660$34.99to$39.08$24,7770.37%0.00%to0.75%30.46%to31.45%
 2018 755$26.82to$29.73$21,6450.63%0.00%to0.75%-7.20%to-6.48%
Fidelity® VIP Investment Grade Bond Portfolio - Initial Class
 2022 10$15.53to$17.74$1582.18%0.00%to0.75%-13.63%to-12.95%
 2021 10$17.98to$20.38$1882.09%0.00%to0.75%-1.37%to-0.63%
 2020 11$18.23to$20.51$1952.11%0.00%to0.75%8.58%to9.39%
 2019 11$16.79to$18.75$1852.78%0.00%to0.75%8.88%to9.71%
 2018 11$15.42to$17.09$1752.23%0.00%to0.75%-1.28%to-0.58%
Fidelity® VIP Equity-Income Portfolio - Service Class
 2022 151$31.50to$35.98$5,0801.73%0.00%to0.75%-5.80%to-5.09%
 2021 164$33.44to$37.91$5,8101.99%0.00%to0.75%23.90%to24.84%
 2020 138$26.99to$30.37$3,9621.62%0.00%to0.75%5.76%to6.56%
 2019 132$25.52to$28.50$3,5602.06%0.00%to0.75%26.34%to27.35%
 2018 176$20.20to$22.38$3,7322.10%0.00%to0.75%-9.05%to-8.41%
M Capital Appreciation Fund
 2022 230$53.97to$63.54$12,4770.00%0.00%to0.75%-18.74%to-18.14%
 2021 230$66.42to$77.62$15,3300.00%0.00%to0.75%16.85%to17.73%
 2020 240$56.84to$65.93$13,7020.00%0.00%to0.75%16.83%to17.73%
 2019 206$48.65to$56.00$10,0810.35%0.00%to0.75%27.89%to28.85%
 2018 204$38.04to$43.46$7,7830.00%0.00%to0.75%-14.78%to-14.14%


59
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
FundInvestment
InceptionUnitsUnit Fair ValueNet AssetsIncome
Expense RatioC
Total ReturnD
DateA
(000's)(lowest to highest)(000's)
RatioB
(lowest to highest)(lowest to highest)
M International Equity Fund
 2022 450$19.95to$23.49$9,0692.55%0.00%to0.75%-14.82%to-14.14%
 2021 456$23.42to$27.36$10,7592.46%0.00%to0.75%10.21%to11.04%
 2020 469$21.25to$24.64$10,0361.51%0.00%to0.75%8.09%to8.88%
 2019 462$19.66to$22.63$9,1592.85%0.00%to0.75%19.44%to20.31%
 2018 464$16.46to$18.81$7,6941.49%0.00%to0.75%-21.17%to-20.57%
M Large Cap Growth Fund
 2022 61$45.69to$53.79$2,9440.00%0.00%to0.75%-25.96%to-25.41%
 2021 60$61.71to$72.11$3,9050.00%0.00%to0.75%20.60%to21.48%
 2020 65$51.17to$59.36$3,4850.00%0.00%to0.75%27.92%to28.90%
 2019 74$40.00to$46.05$3,0860.00%0.00%to0.75%35.09%to36.08%
 2018 91$29.61to$33.84$2,8470.00%0.00%to0.75%-5.67%to-4.94%
M Large Cap Value Fund
 2022 48$32.97to$38.53$1,6701.99%0.00%to0.75%-2.20%to-1.43%
 2021 50$33.71to$39.09$1,7881.63%0.00%to0.75%29.06%to30.00%
 2020 56$26.12to$30.07$1,5231.64%0.00%to0.75%-3.90%to-3.16%
 2019 62$27.18to$31.05$1,7791.84%0.00%to0.75%20.59%to21.53%
 2018 63$22.54to$25.55$1,4891.23%0.00%to0.75%-12.70%to-12.08%
Neuberger Berman Advisers Management Trust® Sustainable Equity Portfolio - Class I Shares
 2022 37$36.22to$41.37$1,4390.41%0.00%to0.75%-19.06%to-18.45%
 2021 38$44.75to$50.73$1,8380.40%0.00%to0.75%22.57%to23.49%
 2020 42$36.51to$41.08$1,6410.51%0.00%to0.75%18.65%to19.56%
 2019 45$30.77to$34.36$1,4730.57%0.00%to0.75%24.93%to25.86%
 2018 51$24.63to$27.30$1,3540.47%0.00%to0.75%-6.42%to-5.70%
VanEck VIP Global Resources Fund - Initial Class Shares
 2022 11$38.45to$41.96$4241.72%0.00%to0.75%7.58%to8.37%
 2021 12$35.74to$38.72$4250.50%0.00%to0.75%18.03%to18.92%
 2020 12$30.28to$32.56$3830.83%0.00%to0.75%18.24%to19.14%
 2019 13$25.61to$27.33$3380.00%0.00%to0.75%11.01%to11.87%
 2018 16$23.07to$24.43$3750.00%0.00%to0.75%-28.82%to-28.27%

60
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
FundInvestment
InceptionUnitsUnit Fair ValueNet AssetsIncome
Expense RatioC
Total ReturnD
DateA
(000's)(lowest to highest)(000's)
RatioB
(lowest to highest)(lowest to highest)
Voya Balanced Portfolio - Class I
 2022 464$19.25to$21.82$9,6021.72%0.00%to0.75%-17.88%to-17.22%
 2021 481$23.44to$26.36$12,0441.66%0.00%to0.75%15.07%to15.92%
 2020 542$20.37to$22.74$11,8112.29%0.00%to0.75%9.99%to10.82%
 2019 581$18.52to$20.52$11,4272.46%0.00%to0.75%18.26%to19.09%
 2018 646$15.66to$17.23$10,6782.19%0.00%to0.75%-7.56%to-6.81%
Voya Intermediate Bond Portfolio - Class I
 2022 3,206$18.22to$21.29$62,5372.69%0.00%to0.75%-15.10%to-14.46%
 2021 3,645$21.46to$24.89$83,3902.97%0.00%to0.75%-1.60%to-0.88%
 2020 3,612$20.88to$25.11$83,6523.46%0.00%to0.75%6.96%to7.81%
 2019 3,740$19.37to$23.29$80,5723.41%0.00%to0.75%9.04%to9.87%
 2018 3,959$17.63to$21.20$77,9643.67%0.00%to0.75%-1.27%to-0.56%
Voya Global Perspectives® Portfolio - Class I
 2022 39$13.54to$14.56$5593.09%0.00%to0.75%-18.14%to-17.51%
 2021 35$16.54to$17.65$6183.66%0.00%to0.75%5.28%to6.07%
 2020 35$15.71to$16.64$5842.76%0.00%to0.75%15.26%to16.12%
 2019 40$13.63to$14.33$5753.74%0.00%to0.75%17.50%to18.33%
 2018 41$11.60to$12.11$4952.99%0.00%to0.75%-7.94%to-7.20%
Voya Government Liquid Assets Portfolio - Class I
 2022 1,486$11.00$16,3431.57%0.75%0.82%
 2021 1,436$10.91$15,6730.00%0.75%-0.73%
 2020 1,918$10.99$21,0840.25%0.75%-0.45%
 2019 1,516$11.04$16,7381.92%0.75%1.19%
 2018 2,244$10.91$24,4791.59%0.75%0.93%
Voya Government Liquid Assets Portfolio - Service Class
 2022 1,268$12.17to$14.19$17,9281.60%0.00%1.33%to1.36%
 2021 942$12.01to$14.00$13,1160.00%0.00%0.00%to0.07%
 2020 1,048$12.01to$13.99$14,6000.24%0.00%0.21%to0.25%
 2019 1,288$11.98to$13.96$17,9731.69%0.00%1.75to1.78
 2018 1,197$11.77to$13.72$16,4151.46%0.00%1.33%


61
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
FundInvestment
InceptionUnitsUnit Fair ValueNet AssetsIncome
Expense RatioC
Total ReturnD
DateA
(000's)(lowest to highest)(000's)
RatioB
(lowest to highest)(lowest to highest)
Voya High Yield Portfolio - Institutional Class
 2022 1,751$10.07to$10.35$17,8875.47%0.00%to0.75%-12.96%to-12.29%
 2021 1,966$11.57to$11.80$22,9885.35%0.00%to0.75%4.52%to5.26%
 2020 1,950$11.07to$11.21$21,7235.17%0.00%to0.75%5.23%to5.95%
 2019 5/9/20191,919$10.52to$10.58$20,249(a)0.00%to0.75%(a)
 2018 (a)(a)(a)(a)(a)(a)
Voya Large Cap Growth Portfolio - Institutional Class
 2022 798$52.13to$59.54$43,8090.00%0.00%to0.75%-31.02%to-30.49%
 2021 835$75.57to$85.66$66,2110.00%0.00%to0.75%18.65%to19.55%
 2020 925$63.69to$71.66$61,6000.46%0.00%to0.75%29.90%to30.90%
 2019 1,034$49.03to$54.75$52,8470.71%0.00%to0.75%31.80%to32.76%
 2018 1,140$37.20to$41.24$44,1010.70%0.00%to0.75%-2.23%to-1.48%
Voya Large Cap Value Portfolio - Institutional Class
 2022 575$28.72to$31.42$17,2641.45%0.00%to0.75%-3.95%to-3.20%
 2021 625$29.90to$32.46$19,4282.52%0.00%to0.75%26.05%to27.00%
 2020 680$23.72to$25.56$16,7252.11%0.00%to0.75%5.47%to6.28%
 2019 688$22.49to$24.05$15,9662.11%0.00%to0.75%24.19%to25.13%
 2018 771$18.11to$19.22$14,3712.06%0.00%to0.75%-8.49%to-7.82%
Voya Limited Maturity Bond Portfolio - Service Class
 2022 1,671$11.87to$18.03$23,5171.49%0.00%to0.75%-5.64%to-4.95%
 2021 2,036$12.58to$18.97$29,5311.42%0.00%to0.75%-0.87%to-0.14%
 2020 1,852$12.69to$19.00$27,3672.08%0.00%to0.75%2.42%to3.20%
 2019 1,931$12.39to$18.41$28,1131.66%0.00%to0.75%3.25%to4.11%
 2018 1,696$12.00to$17.70$24,0471.47%0.00%to0.75%0.33%to1.09%
Voya Retirement Growth Portfolio - Institutional Class
 2022 1,214$21.18to$23.39$27,9011.55%0.00%to0.75%-16.97%to-16.31%
 2021 1,229$25.51to$27.95$33,7932.08%0.00%to0.75%15.12%to15.98%
 2020 1,406$22.16to$24.10$33,4602.56%0.00%to0.75%13.23%to14.11%
 2019 1,491$19.57to$21.12$31,1242.40%0.00%to0.75%21.18%to22.08%
 2018 1,663$16.15to$17.30$28,4252.19%0.00%to0.75%-7.71%to-7.04%


62
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
FundInvestment
InceptionUnitsUnit Fair ValueNet AssetsIncome
Expense RatioC
Total ReturnD
DateA
(000's)(lowest to highest)(000's)
RatioB
(lowest to highest)(lowest to highest)
Voya Retirement Moderate Growth Portfolio - Institutional Class
 2022 704$20.27to$22.38$15,3401.73%0.00%to0.75%-16.62%to-15.99%
 2021 726$24.31to$26.64$18,8672.18%0.00%to0.75%13.55%to14.38%
 2020 725$21.41to$23.29$16,5072.50%0.00%to0.75%12.74%to13.61%
 2019 737$18.99to$20.50$14,7942.38%0.00%to0.75%19.51%to20.38%
 2018 780$15.89to$17.03$13,0432.34%0.00%to0.75%-6.64%to-5.91%
Voya Retirement Moderate Portfolio - Institutional Class
 2022 547$18.20to$20.09$10,2732.02%0.00%to0.75%-15.51%to-14.87%
 2021 568$21.54to$23.60$12,6042.30%0.00%to0.75%9.23%to10.02%
 2020 521$19.72to$21.45$10,6052.45%0.00%to0.75%11.66%to12.54%
 2019 551$17.66to$19.06$10,0032.41%0.00%to0.75%16.64%to17.51%
 2018 546$15.14to$16.22$8,5072.23%0.00%to0.75%-5.43%to-4.70%
Voya U.S. Stock Index Portfolio - Institutional Class
 2022 3,769$41.69to$47.96$162,5651.23%0.00%to0.75%-18.95%to-18.35%
 2021 4,021$51.44to$58.74$213,5071.11%0.00%to0.75%27.42%to28.37%
 2020 4,375$40.37to$45.76$182,2551.77%0.00%to0.75%17.22%to18.12%
 2019 4,881$34.44to$38.74$173,4191.62%0.00%to0.75%30.16%to31.14%
 2018 5,371$26.46to$29.54$146,1801.77%0.00%to0.75%-5.36%to-4.65%
VY® CBRE Global Real Estate Portfolio - Service Class
 2022 665$13.23to$14.77$9,3542.80%0.00%to0.75%-25.67%to-25.10%
 2021 704$17.80to$19.72$13,2542.64%0.00%to0.75%33.13%to34.15%
 2020 753$13.37to$14.70$10,6254.97%0.00%to0.75%-5.71%to-5.04%
 2019 755$14.18to$15.48$11,2212.74%0.00%to0.75%23.41%to24.34%
 2018 824$11.49to$12.45$9,8965.48%0.00%to0.75%-9.46%to-8.72%
VY® Invesco Growth and Income Portfolio - Service Class
 2022 293$32.64to$37.28$10,2441.26%0.00%to0.75%-6.56%to-5.84%
 2021 318$34.93to$39.60$11,8511.34%0.00%to0.75%28.00%to28.99%
 2020 305$27.29to$30.70$8,9061.81%0.00%to0.75%2.13%to2.90%
 2019 331$26.72to$29.84$9,4092.22%0.00%to0.75%23.82%to24.75%
 2018 391$21.58to$23.92$9,0101.55%0.00%to0.75%-14.23%to-13.58%

63
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
FundInvestment
InceptionUnitsUnit Fair ValueNet AssetsIncome
Expense RatioC
Total ReturnD
DateA
(000's)(lowest to highest)(000's)
RatioB
(lowest to highest)(lowest to highest)
VY® JPMorgan Emerging Markets Equity Portfolio - Institutional Class
 2022 1,491$18.00to$20.51$28,3370.00%0.00%to0.75%-26.47%to-25.89%
20211,511$24.48to$27.68$38,8880.00%0.00%to0.75%-10.49%to-9.82%
20201,535$27.35to$30.70$43,9000.54%0.00%to0.75%32.70%to33.71%
20191,897$20.61to$22.96$40,8130.13%0.00%to0.75%31.11%to32.11%
20181,939$15.72to$17.38$31,8300.88%0.00%to0.75%-17.18%to-16.55%
VY® JPMorgan Small Cap Core Equity Portfolio - Institutional Class
 2022 666$45.12to$51.90$31,2440.01%0.00%to0.75%-18.17%to-17.57%
2021704$55.14to$62.97$40,2620.39%0.00%to0.75%17.82%to18.72%
2020749$46.80to$53.04$36,3020.00%0.00%to0.75%15.64%to16.52%
2019770$40.44to$45.52$32,1931.18%0.00%to0.75%25.80%to26.77%
2018819$31.90to$35.91$27,2000.68%0.00%to0.75%-11.01%to-10.34%
VY® T. Rowe Price Capital Appreciation Portfolio - Institutional Class
 2022 1,454$48.83to$75.59$104,0261.45%0.00%to0.75%-12.62%to-11.95%
20211,548$55.46to$85.86$126,1221.10%0.00%to0.75%17.78%to18.68%
20201,519$46.73to$72.35$104,4891.47%0.00%to0.75%17.39%to18.28%
20191,620$39.51to$61.17$94,4111.81%0.00%to0.75%23.78%to24.72%
20181,569$31.68to$49.05$73,1882.45%0.00%to0.75%-0.02%to0.74%
VY® T. Rowe Price Equity Income Portfolio - Institutional Class
 2022 617$36.65to$48.44$29,0152.12%0.00%to0.75%-3.95%to-3.22%
2021664$37.87to$50.05$32,3791.88%0.00%to0.75%24.74%to25.66%
2020744$30.14to$39.83$28,9344.78%0.00%to0.75%0.50%to1.28%
2019754$29.76to$39.33$29,0662.77%0.00%to0.75%25.74%to26.69%
2018841$23.49to$31.05$25,6742.43%0.00%to0.75%-9.78%to-9.10%
Voya Global Bond Portfolio - Service Class
 2022 754$13.00to$14.94$10,4132.46%0.00%to0.75%-19.10%to-18.45%
2021779$16.07to$18.32$13,2502.60%0.00%to0.75%-5.75%to-5.06%
2020791$17.05to$19.30$14,2522.55%0.00%to0.75%8.05%to8.86%
2019855$15.78to$17.73$14,1572.73%0.00%to0.75%6.84%to7.65%
2018952$14.77to$16.47$14,7643.53%0.00%to0.75%-2.89%to-2.14%


64
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
FundInvestment
InceptionUnitsUnit Fair ValueNet AssetsIncome
Expense RatioC
Total ReturnD
DateA
(000's)(lowest to highest)(000's)
RatioB
(lowest to highest)(lowest to highest)
Voya International High Dividend Low Volatility Portfolio - Initial Class
 2022 730$14.13to$15.31$10,5934.26%0.00%to0.75%-9.60%to-8.92%
2021805$15.63to$16.81$12,9062.35%0.00%to0.75%11.25%to12.14%
2020776$14.05to$14.99$11,1653.08%0.00%to0.75%-1.47%to-0.73%
2019853$14.26to$15.10$12,4492.06%0.00%to0.75%15.93%to16.69%
2018823$12.30to$12.94$10,3532.21%0.00%to0.75%-15.58%to-14.92%
Voya Solution Moderately Aggressive Portfolio - Initial Class
 2022 173$14.06to$14.86$2,5453.51%0.00%to0.75%-19.20%to-18.58%
2021175$17.40to$18.25$3,1761.90%0.00%to0.75%16.54%to17.36%
2020169$14.93to$15.55$2,6092.01%0.00%to0.75%13.36%to14.25%
2019168$13.17to$13.61$2,2732.48%0.00%to0.75%22.06%to22.94%
2018181$10.79to$11.07$1,9941.39%0.00%to0.75%-9.71%to-8.96%
VY® American Century Small-Mid Cap Value Portfolio - Initial Class
 2022 1$44.83to$51.20$531.37%0.00%to0.75%-6.10%to-5.38%
20211$47.74to$54.11$571.94%0.00%to0.75%26.63%to27.56%
20201$37.70to$42.42$462.17%0.00%to0.75%3.06%to3.84%
20191$36.58to$40.85$462.20%0.00%to0.75%29.99%to30.97%
20181$28.14to$31.19$451.82%0.00%to0.75%-14.80%to-14.17%
VY® Baron Growth Portfolio - Initial Class
 2022 243$47.28to$54.01$12,4230.00%0.00%to0.75%-24.08%to-23.50%
2021267$62.28to$70.60$17,8900.00%0.00%to0.75%19.84%to20.73%
2020291$51.97to$58.48$16,1440.00%0.00%to0.75%32.54%to33.55%
2019326$39.21to$43.79$13,5720.00%0.00%to0.75%37.92%to38.97%
2018357$28.43to$31.51$10,7530.00%0.00%to0.75%-2.40%to-1.68%
VY® Columbia Small Cap Value II Portfolio - Initial Class
 2022 262$26.80to$30.38$7,5650.26%0.00%to0.75%-14.32%to-13.67%
2021290$31.28to$35.19$9,7110.49%0.00%to0.75%33.50%to34.52%
2020335$23.43to$26.16$8,3400.79%0.00%to0.75%9.08%to9.87%
2019346$21.48to$23.81$7,8580.71%0.00%to0.75%19.47%to20.44%
2018374$17.98to$19.77$7,1230.48%0.00%to0.75%-18.12%to-17.52%


65
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
FundInvestment
InceptionUnitsUnit Fair ValueNet AssetsIncome
Expense RatioC
Total ReturnD
DateA
(000's)(lowest to highest)(000's)
RatioB
(lowest to highest)(lowest to highest)
VY® Invesco Comstock Portfolio - Initial Class
 2022 257$38.55to$47.77$11,5421.82%0.00%to0.75%-0.12%to0.63%
2021265$38.31to$47.48$11,9341.79%0.00%to0.75%32.34%to33.34%
2020301$28.73to$35.61$10,2012.29%0.00%to0.75%-0.96%to-0.21%
2019349$28.79to$35.69$11,7632.32%0.00%to0.75%24.55%to25.54%
2018415$22.94to$28.43$11,0962.07%0.00%to0.75%-12.82%to-12.17%
VY® Invesco Equity and Income Portfolio - Initial Class
 2022 262$31.46to$36.76$9,1731.67%0.00%to0.75%-8.31%to-7.59%
2021280$34.31to$39.78$10,6231.48%0.00%to0.75%17.94%to18.82%
2020294$29.09to$33.48$9,3961.73%0.00%to0.75%9.16%to9.95%
2019317$26.65to$30.45$9,2702.14%0.00%to0.75%19.19%to20.12%
2018325$22.36to$25.35$7,9442.01%0.00%to0.75%-10.13%to-9.46%
VY® Invesco Global Portfolio - Initial Class
 2022 354$30.62to$34.97$11,7540.00%0.00%to0.75%-32.42%to-31.93%
2021367$45.31to$51.37$17,9520.00%0.00%to0.75%14.51%to15.36%
2020393$39.57to$44.53$16,7721.04%0.00%to0.75%26.83%to27.78%
2019433$31.20to$34.85$14,5140.51%0.00%to0.75%30.82%to31.83%
2018471$23.85to$26.44$11,9981.83%0.00%to0.75%-13.87%to-13.20%
VY® JPMorgan Mid Cap Value Portfolio - Initial Class
 2022 212$57.43to$66.58$12,9221.12%0.00%to0.75%-9.03%to-8.33%
2021225$47.03to$72.63$15,0710.93%0.00%to0.75%28.84%to29.81%
2020242$36.23to$55.96$12,5601.18%0.00%to0.75%-0.20%to0.54%
2019273$36.04to$55.66$14,1331.22%0.00%to0.75%25.51%to26.47%
2018299$28.50to$44.01$12,2961.36%0.00%to0.75%-12.62%to-11.96%
VY® T. Rowe Price Diversified Mid Cap Growth Portfolio - Initial Class
 2022 796$47.65to$54.43$39,4190.00%0.00%to0.75%-24.91%to-24.34%
2021811$63.46to$71.94$53,3780.00%0.00%to0.75%12.96%to13.79%
2020857$56.18to$63.22$49,8580.09%0.00%to0.75%30.83%to31.86%
2019963$42.94to$47.95$42,8470.31%0.00%to0.75%36.19%to37.20%
20181,054$31.53to$34.95$34,3400.18%0.00%to0.75%-3.96%to-3.24%

66
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
FundInvestment
InceptionUnitsUnit Fair ValueNet AssetsIncome
Expense RatioC
Total ReturnD
DateA
(000's)(lowest to highest)(000's)
RatioB
(lowest to highest)(lowest to highest)
Voya Strategic Allocation Conservative Portfolio - Class I
 2022 2$19.28$473.64%0.75%-17.08%
20213 23.25 $712.88%0.75%8.34%
20203 21.46 $682.96%0.75%9.60%
20193$19.58to$21.96$673.13%0.00%to0.75%13.97%to14.85%
20184$17.18to$19.12$613.15%0.00%to0.75%-4.77%to-4.06%
Voya Strategic Allocation Growth Portfolio - Class I
 2022 8$24.25to$27.81$2083.03%0.00%to0.75%-19.94%to-19.34%
20218$30.29to$34.48$2671.99%0.00%to0.75%16.46%to17.36%
20208$26.01to$29.38$2361.78%0.00%to0.75%13.58%to14.41%
20199$22.90to$25.68$2142.52%0.00%to0.75%21.87%to22.81%
20189$18.79to$20.91$1831.77%0.00%to0.75%-9.01%to-8.33%
Voya Strategic Allocation Moderate Portfolio - Class I
 2022 4$21.95to$25.18$952.91%0.00%to0.75%-18.76%to-18.14%
202112$27.02to$30.76$3772.67%0.00%to0.75%12.96%to13.84%
202022$23.92to$27.02$5952.35%0.00%to0.75%11.88%to12.72%
201932$21.38to$23.97$7642.90%0.00%to0.75%18.38%to19.25%
201841$18.06to$20.10$8242.36%0.00%to0.75%-6.76%to-6.03%
Voya Growth and Income Portfolio - Class I
 2022 321$28.54to$50.96$9,8831.05%0.00%to0.75%-15.34%to-14.71%
2021358$33.71to$59.75$12,9111.03%0.00%to0.75%28.03%to29.01%
2020367$26.33to$46.32$10,2931.31%0.00%to0.75%16.40%to17.27%
2019385$22.62to$39.50$9,2961.61%0.00%to0.75%27.87%to28.87%
2018461$17.69to$30.65$8,6281.97%0.00%to0.75%-5.15%to-4.42%
Voya Global High Dividend Low Volatility Portfolio - Class I
 2022 671$14.78to$15.68$10,2882.46%0.00%to0.75%-5.62%to-4.91%
2021884$15.66to$16.49$14,3202.63%0.00%to0.75%20.00%to20.89%
2020944$13.05to$13.64$12,6942.18%0.00%to0.75%-1.58%to-0.80%
2019956$13.26to$13.75$12,9792.80%0.00%to0.75%20.77%to21.68%
20181,082$10.98to$11.30$12,1005.38%0.00%to0.75%-9.56%to-8.87%


67
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
FundInvestment
InceptionUnitsUnit Fair ValueNet AssetsIncome
Expense RatioC
Total ReturnD
DateA
(000's)(lowest to highest)(000's)
RatioB
(lowest to highest)(lowest to highest)
Voya Index Plus LargeCap Portfolio - Class I
 2022 718$37.60to$43.94$28,5910.77%0.00%to0.75%-19.66%to-19.03%
2021789$46.80to$54.27$39,1831.02%0.00%to0.75%28.29%to29.25%
2020817$36.48to$41.99$31,5051.15%0.00%to0.75%15.04%to15.90%
2019716$31.71to$36.23$23,2441.53%0.00%to0.75%29.06%to30.04%
2018728$24.57to$27.86$18,3961.46%0.00%to0.75%-7.49%to-6.79%
Voya Index Plus MidCap Portfolio - Class I
 2022 238$41.21to$48.15$10,7320.92%0.00%to0.75%-14.93%to-14.29%
2021267$48.44to$56.18$14,0421.00%0.00%to0.75%26.77%to27.74%
2020270$38.21to$43.98$11,3171.33%0.00%to0.75%7.45%to8.25%
2019338$32.37to$40.63$13,1171.48%0.00%to0.75%26.14%to27.09%
2018397$25.47to$31.97$12,1281.20%0.00%to0.75%-15.01%to-14.33%
Voya Index Plus SmallCap Portfolio - Class I
 2022 191$34.22to$45.18$7,9550.84%0.00%to0.75%-14.64%to-14.00%
2021177$39.79to$52.54$8,7110.75%0.00%to0.75%27.50%to28.46%
2020198$30.98to$40.90$7,6010.97%0.00%to0.75%4.59%to5.41%
2019220$29.39to$38.81$8,0381.02%0.00%to0.75%20.89%to21.81%
2018226$24.13to$31.86$6,8260.99%0.00%to0.75%-13.06%to-12.40%
Voya International Index Portfolio - Class I
 2022 7/8/20223,760$10.37to$10.62$39,0270.00%0.00%to0.75%5.71%to6.12%
2021(b)(b)(b)(b)(b)(b)
2020(b)(b)(b)(b)(b)(b)
2019(b)(b)(b)(b)(b)(b)
2018(b)(b)(b)(b)(b)(b)
Voya Russell™ Large Cap Growth Index Portfolio - Class I
 2022 720$59.69to$66.13$43,8920.40%0.00%to0.75%-30.54%to-30.03%
2021812$85.94to$94.51$71,1660.50%0.00%to0.75%29.68%to30.67%
2020867$66.27to$72.33$58,4770.57%0.00%to0.75%37.43%to38.46%
2019960$48.22to$52.24$47,0120.96%0.00%to0.75%34.81%to35.83%
20181,075$35.77to$38.46$39,0121.13%0.00%to0.75%-1.70%to-0.95%


68
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
FundInvestment
InceptionUnitsUnit Fair ValueNet AssetsIncome
Expense RatioC
Total ReturnD
DateA
(000's)(lowest to highest)(000's)
RatioB
(lowest to highest)(lowest to highest)
Voya Russell™ Large Cap Index Portfolio - Class I
 2022 229$50.33to$55.76$12,0560.65%0.00%to0.75%-20.65%to-20.07%
2021294$63.43to$69.76$19,6031.07%0.00%to0.75%26.46%to27.39%
2020338$50.16to$54.76$17,8611.48%0.00%to0.75%20.93%to21.88%
2019409$41.48to$44.93$17,7512.06%0.00%to0.75%30.36%to31.34%
2018233$31.82to$34.21$7,7691.91%0.00%to0.75%-4.19%to-3.47%
Voya Russell™ Large Cap Value Index Portfolio - Class I
 2022 166$38.80to$42.99$6,7041.33%0.00%to0.75%-6.19%to-5.47%
2021183$41.36to$45.48$7,8712.35%0.00%to0.75%22.08%to22.99%
2020227$33.88to$36.98$7,9900.98%0.00%to0.75%0.71%to1.48%
2019284$33.64to$36.44$9,9382.54%0.00%to0.75%25.01%to25.92%
2018325$26.91to$28.94$9,0482.54%0.00%to0.75%-7.33%to-6.62%
Voya Russell™ Mid Cap Growth Index Portfolio - Class I
 2022 106$48.04to$53.23$5,4020.00%0.00%to0.75%-27.52%to-26.97%
2021112$66.28to$72.89$7,8020.23%0.00%to0.75%11.45%to12.29%
2020116$59.47to$64.91$7,2710.26%0.00%to0.75%33.82%to34.84%
2019113$44.44to$48.14$5,2341.05%0.00%to0.75%33.86%to34.88%
2018147$33.20to$35.69$5,0690.70%0.00%to0.75%-5.84%to-5.16%
Voya Russell™ Small Cap Index Portfolio - Class I
 2022 232$26.02to$29.05$6,4250.74%0.00%to0.75%-21.27%to-20.69%
2021216$33.05to$36.63$7,5930.63%0.00%to0.75%13.50%to14.36%
2020208$29.12to$32.03$6,4160.91%0.00%to0.75%18.66%to19.56%
2019238$24.54to$26.79$6,1421.05%0.00%to0.75%24.25%to25.19%
2018309$19.75to$21.40$6,3961.36%0.00%to0.75%-11.95%to-11.28%
Voya Small Company Portfolio - Class S
 2022 338$24.30to$26.73$8,4780.00%0.00%to0.75%-17.49%to-16.88%
2021370$29.45to$32.16$11,2290.00%0.00%to0.75%13.62%to14.49%
2020398$25.92to$28.09$10,6050.30%0.00%to0.75%11.20%to12.05%
2019499$23.31to$25.07$11,9930.15%0.00%to0.75%24.92%to25.85%
2018446$18.66to$19.92$8,5250.25%0.00%to0.75%-16.70%to-16.06%

69
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECURITY LIFE SEPARATE ACCOUNT L1
Notes to Financial Statement
FundInvestment
InceptionUnitsUnit Fair ValueNet AssetsIncome
Expense RatioC
Total ReturnD
DateA
(000's)(lowest to highest)(000's)
RatioB
(lowest to highest)(lowest to highest)
Voya U.S. Bond Index Portfolio - Class I
 2022 1,046$12.49to$13.95$13,5412.41%0.00%to0.75%-13.80%to-13.08%
2021833$14.49to$16.05$12,5962.06%0.00%to0.75%-2.56%to-1.89%
2020889$14.87to$16.36$13,6972.80%0.00%to0.75%6.37%to7.21%
2019638$13.98to$15.26$9,4492.57%0.00%to0.75%7.54%to8.30%
2018632$13.00to$14.09$8,6902.55%0.00%to0.75%-1.14%to-0.35%
Voya MidCap Opportunities Portfolio - Class I
 2022 337$47.34to$55.74$17,1330.00%0.00%to0.75%-25.62%to-25.07%
2021323$63.65to$74.39$22,1640.00%0.00%to0.75%11.22%to12.07%
2020348$57.23to$66.38$21,3660.11%0.00%to0.75%40.10%to41.14%
2019389$40.85to$47.03$16,9790.29%0.00%to0.75%28.38%to29.35%
2018453$31.82to$36.36$15,2780.00%0.00%to0.75%-8.19%to-7.48%
Voya SmallCap Opportunities Portfolio - Class I
 2022 220$26.80to$40.28$6,3140.00%0.00%to0.75%-23.67%to-23.10%
2021187$35.11to$52.38$7,0750.00%0.00%to0.75%3.91%to4.68%
2020229$33.79to$50.04$8,2100.00%0.00%to0.75%25.38%to26.37%
2019208$26.95to$39.60$6,0080.00%0.00%to0.75%24.77%to25.69%
2018216$21.60to$31.51$4,9790.00%0.00%to0.75%-16.51%to-15.85%
(a)As investment Division had no investments until 2019, this data is not meaningful and is therefore not presented.
(b)As investment Division had no investments until 2022, this data is not meaningful and is therefore not presented.
AThe Fund Inception Date represents the first date the fund received money.
BThe Investment Income Ratio represents dividends received by the Division, excluding capital gains distributions, divided by the average net assets. The recognition of investment income is determined by the timing of the declaration of dividends by the underlying fund in which the Division invests.
CThe Expense Ratio considers only the annualized contract expenses borne directly by the Account, excluding expenses charged through the redemption of units, and is equal to the mortality and expense as defined in the Charges and Fees note. Certain items in this table are presented as a range of minimum and maximum values; however, such information is calculated independently for each column in the table.
DTotal Return is calculated as the change in unit value for each Policy presented in the Statements of Assets and Liabilities. Certain items in this table are presented as a range of minimum and maximum values; however, such information is calculated independently for each column in the table.
70


INDEPENDENT AUDITOR'S REPORT

To the Members of the Audit Committee of Resolution Life U.S. Holdings Inc.

Opinions

We have audited the statutory basis financial statements of Security Life of Denver Insurance Company (the “Company”), which comprise the statutory basis balance sheets as of December 31, 2022 and 2021, and the related statutory basis statements of operations, changes in capital and surplus, and cash flows for the years then ended, and the related notes to the statutory basis financial statements (collectively referred to as the “statutory basis financial statements”).

Unmodified Opinion on Statutory Basis of Accounting

In our opinion, the accompanying statutory basis financial statements present fairly, in all material respects, the balance sheets of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for the years then ended, in accordance with the accounting practices prescribed or permitted by the Colorado Division of Insurance described in Note 1.

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

In our opinion, because of the significance of the matter described in the Basis for Adverse Opinion on Accounting Principles Generally Accepted in the United States of America section of our report, the statutory basis financial statements do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the balance sheets of the Company as of December 31, 2022 and 2021, or the results of its operations or its cash flows for the years then ended.

Predecessor Auditors' Opinion on 2020 Statutory Basis Financial Statements

The statutory basis financial statements of the Company for the year ended December 31, 2020, were audited by other auditors whose report, dated April 5, 2021, expressed an opinion that those statutory basis financial statements were not fairly presented in accordance with accounting principles generally accepted in the United States of America; however, such report also expressed an unmodified opinion on those statutory basis financial statements in accordance with the accounting practices prescribed or permitted by the Colorado Division of Insurance described in Note 1.

Basis for Opinions

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Statutory Basis Financial Statements section of our report. We are required to be independent of the Company, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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

As described in Note 1 to the statutory basis financial statements, the statutory basis financial statements are prepared by the Company using the accounting practices prescribed or permitted by the Colorado Division of Insurance, which is a basis of accounting other than accounting
1

principles generally accepted in the United States of America, to meet the requirements of the Colorado Division of Insurance. The effects on the statutory basis financial statements of the variances between the statutory basis of accounting described in Note 1 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material and pervasive.

Responsibilities of Management for the Statutory Basis Financial Statements

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

In preparing the statutory basis financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for one year after the date that the statutory basis financial statements are issued.

Auditor’s Responsibilities for the Audit of the Statutory Basis Financial Statements

Our objectives are to obtain reasonable assurance about whether the statutory basis financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the statutory basis financial statements.

In performing an audit in accordance with GAAS, we:

•Exercise professional judgment and maintain professional skepticism throughout the audit.
•Identify and assess the risks of material misstatement of the statutory basis financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the statutory basis financial statements.
•Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, no such opinion is expressed.
•Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the statutory basis financial statements.
•Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.


2

Report on Supplemental Schedules

Our 2022 audit was conducted for the purpose of forming an opinion on the 2022 statutory basis financial statements as a whole. The supplemental schedule of selected statutory basis financial data, supplemental schedule of life and health reinsurance disclosures, investment risk interrogatories, and summary investment schedule as of and for the year ended December 31, 2022, are presented for purposes of additional analysis and are not a required part of the 2022 statutory basis financial statements. These schedules are the responsibility of the Company's management and were derived from and relate directly to the underlying accounting and other records used to prepare the statutory basis financial statements. Such schedules have been subjected to the auditing procedures applied in our audit of the 2022 statutory basis financial statements and certain additional procedures, including comparing and reconciling such schedules directly to the underlying accounting and other records used to prepare the statutory basis financial statements or to the statutory basis financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, such schedules are fairly stated in all material respects in relation to the 2022 statutory basis financial statements as a whole.

/s/Deloitte & Touche LLP
Chicago, Illinois
April 27, 2023





3

SECURITY LIFE OF DENVER INSURANCE COMPANY
Statements of Admitted Assets, Liabilities and Capital and Surplus - Statutory Basis
December 31
20222021
(In Thousands)
Admitted Assets
Cash and invested assets:
Bonds$24,476,528 $25,694,336 
Preferred stocks8,579 11,048 
Common stocks - unaffiliated85,122 72,966 
Common stocks - affiliated161,374 147,248 
Mortgage loans2,631,708 2,452,617 
Contract loans1,522,059 1,529,796 
Derivatives217,376 523,548 
Other invested assets1,040,021 930,102 
Cash, cash equivalents and short-term investments419,142 366,847 
Total cash and invested assets30,561,909 31,728,508 
Deferred and uncollected premiums(7,316)72,796 
Accrued investment income215,763 214,404 
Reinsurance balances recoverable499,382 588,183 
Federal income tax recoverable21,081 — 
Indebtedness from related parties4,125 420 
Net deferred tax asset147,331 110,201 
Other assets66,825 89,286 
Separate account assets1,364,350 1,787,549 
Total admitted assets$32,873,450 $34,591,347 


See Notes to Statutory Basis Financial Statements.
4

SECURITY LIFE OF DENVER INSURANCE COMPANY
Statements of Admitted Assets, Liabilities and Capital and Surplus - Statutory Basis
December 31
20222021
(In Thousands, except share and par amounts)
Liabilities and Capital and Surplus
Liabilities:
Policy and contract liabilities:
Life and annuity reserves$18,031,064 $18,616,260 
Deposit type contracts2,210,800 1,922,678 
Policy and contract claims426,431 444,623 
Dividends payable23,074 23,778 
Total policy and contract liabilities20,691,369 21,007,339 
Interest maintenance reserve1,184,062 1,664,151 
Accounts payable and accrued expenses16,771 16,405 
Liabilities withheld for reinsurance counterparties7,170,255 7,315,828 
Payables under reinsurance contracts438,459 289,195 
Current federal income taxes payable— 19,929 
Indebtedness to related parties77,072 9,335 
Asset valuation reserve300,157 276,419 
Net transfers from separate accounts due or accrued2,394 (3,684)
Derivatives17,549 45,740 
Borrowed money and interest thereon3,007 237,863 
Other liabilities341,680 711,674 
Separate account liabilities1,364,350 1,787,549 
Total liabilities31,607,125 33,377,743 
Capital and surplus:
Common stock: authorized 149 shares of $20,000 par value; 144 shares
issued and outstanding2,880 2,880 
Aggregate write-ins for other than special surplus funds380,778 413,048 
Surplus notes123,000 123,000 
Paid in and contributed surplus922,808 882,808 
Unassigned surplus(163,141)(208,132)
Total capital and surplus1,266,325 1,213,604 
Total liabilities and capital and surplus$32,873,450 $34,591,347 


See Notes to Statutory Basis Financial Statements.
5

SECURITY LIFE OF DENVER INSURANCE COMPANY
Statements of Operations – Statutory Basis
Years ended December 31
202220212020
(In Thousands)
Premiums and other revenues:
Life, annuity, and accident and health premiums$478,488 $16,652,837 $385,443 
Net investment income1,191,984 1,104,422 582,048 
Amortization of interest maintenance reserve99,738 95,955 (3,212)
Commissions, expense allowances and reserve adjustments
on reinsurance ceded86,772 674,660 (193,868)
Other revenue160,130 133,664 73,942 
Total premiums and other revenues2,017,112 18,661,538 844,353 
Benefits and other expenses:
Death benefits813,925 834,634 404,888 
Annuity benefits292,715 307,881 8,933 
Disability benefits— — (296,809)
Surrender benefits and withdrawals831,595 647,779 249,600 
Interest and adjustments on contract or deposit-type contract funds133,653 26,487 12,143 
Other benefits12,044 15,429 1,514 
Increase (decrease) in life and annuity reserves(585,196)10,794,058 187,124 
Net transfers from separate accounts(45,761)(48,809)(39,498)
Total benefits and other expenses1,452,975 12,577,459 527,895 
Insurance expenses and other deductions:
Commissions and expense allowances79,851 1,298,144 117,145 
General expenses268,640 237,466 70,566 
Insurance taxes, licenses and fees13,495 15,398 16,148 
Assumed modified coinsurance reserves(439,013)2,719,206 (70,389)
Net interest maintenance reserve transfers under reinsurance66,498 1,359,787 (12,842)
Deferred gain on reinsurance— 438,863 — 
Other deductions226,813 560,602 196,328 
Total insurance expenses and other deductions216,284 6,629,466 316,956 
Income/(Loss) from operations before policyholder dividends,
federal income taxes and net realized capital gains 347,853 (545,387)(499)
Dividends to policyholders17,133 31,561 7,964 
Income/(Loss) from operations before federal income taxes
and net realized capital gains330,720 (576,948)(8,463)
Federal income tax expense (benefit)(5,622)(59,971)28,557 
Income/(Loss) from operations before net realized capital gains336,342 (516,977)(37,020)
Net realized capital (losses) gains (133,974)(81,708)(9,713)
Net income (loss)$202,368 $(598,685)$(46,733)
See Notes to Statutory Basis Financial Statements.
6

SECURITY LIFE OF DENVER INSURANCE COMPANY
Statements of Changes in Capital and Surplus—Statutory Basis
Common Stock
SharesAmountAggregate Write-Ins For Other Than Special Surplus FundsSurplus NotesPaid-in SurplusUnassigned Surplus (Deficit)Total
(In Thousands)
December 31, 2019144 $2,880 $281,541 $252,013 $588,156 $(243,529)$881,061 
Net loss— — — — — (46,733)(46,733)
Change in net unrealized capital gains (losses) less capital gains tax — — — — — 54,517 54,517 
Change in net deferred income tax— — — — — 39,844 39,844 
Change in nonadmitted assets— — — — — (47,015)(47,015)
Change in liability for reinsurance in unauthorized and certified companies— — — — — 63 63 
Change in asset valuation reserve— — — — — (6,145)(6,145)
Change in surplus notes— — — (33,006)— — (33,006)
Deferred gain on reinsurance of existing business— — (14,952)— — — (14,952)
Amortization of gain on reinsurance— — (19,563)— — — (19,563)
Other post-employment benefits— — — — — (159)(159)
Prior period adjustments— — — — — (13,590)(13,590)
December 31, 2020144 2,880 247,026 219,007 588,156 (262,747)794,322 
Net loss— — — — — (598,685)(598,685)
Change in net unrealized capital gains (losses) less capital gains tax — — — — — 272,407 272,407 
Change in net deferred income tax— — — — — 304,943 304,943 
Change in nonadmitted assets— — — — — (240,054)(240,054)
Change in liability for reinsurance in unauthorized and certified companies— — — — — (7)(7)
Change in asset valuation reserve— — — — — (159,471)(159,471)
Change in surplus notes— — — (96,007)— — (96,007)
Capital contribution— — — — 772,197 — 772,197 
Quasi-reorganization— — — — (477,545)477,545 — 
Net gain on reinsurance deferred and recognized— — 191,837 — — — 191,837 
Amortization of gain on reinsurance— — (25,815)— — — (25,815)
Change in pension and other post-employment benefits— — — — — (2,063)(2,063)
December 31, 2021144 2,880 413,048 123,000 882,808 (208,132)1,213,604 
Net income— — — — — 202,368 202,368 
Change in net unrealized capital gains (losses) less capital gains tax— — — — — (202,692)(202,692)
Change in net deferred income tax— — — — — (57,635)(57,635)
Change in nonadmitted assets— — — — — 32,096 32,096 
Change in liability for reinsurance in unauthorized and certified companies— — — — — 53 53 
Change in asset valuation reserve— — — — — (23,738)(23,738)
Capital contribution— — — — 90,000 — 90,000 
Amortization of gain on reinsurance— — (32,270)— — — (32,270)
Stockholder distribution— — — — (50,000)— (50,000)
Prior period adjustments— — — — — 94,539 94,539 
December 31, 2022144 $2,880 $380,778 $123,000 $922,808 $(163,141)$1,266,325 
See Notes to Statutory Basis Financial Statements.
7

SECURITY LIFE OF DENVER INSURANCE COMPANY
Statements of Cash Flows—Statutory Basis
Year ended December 31
202220212020
(In Thousands)
Operating activities:
Premiums, policy proceeds and other considerations received,
net of reinsurance paid$525,382 $(3,024,443)$344,568 
Net investment income received1,246,120 1,129,054 582,867 
Commissions and expenses paid(171,171)(642,825)(234,206)
Benefits paid(2,016,202)(1,814,050)(525,043)
Net transfers from separate accounts51,839 50,637 41,931 
Dividends paid to policyholders(17,837)(12,832)(8,339)
Federal income taxes recovered (paid)(29,482)— 62,083 
Miscellaneous income 227,420 254,285 118,560 
Net cash provided by (used in) operations(183,931)(4,060,174)382,420 
Investment activities:
Proceeds from sales, maturities or repayments of investments:
Bonds5,838,449 9,335,048 899,048 
Stocks55,182 16,231 52,312 
Mortgage loans317,153 316,689 125,619 
Other invested assets85,384 362,809 46,438 
Net gain (loss) on cash and short-term investments31 1,501 17 
Miscellaneous proceeds125,598 32,501 106,608 
Total proceeds from sales, maturities or repayments of investments6,421,797 10,064,779 1,230,041 
Cost of investments acquired:
Bonds5,200,850 10,356,257 1,387,553 
Stocks29,678 36,806 15,397 
Mortgage loans513,110 238,651 67,721 
Other invested assets229,581 429,903 85,950 
Miscellaneous applications127,128 240,964 88,165 
Total cost of investments acquired6,100,348 11,302,581 1,644,786 
Net decrease in contract loans7,452 29,138 5,662 
Net cash provided by (used in) investment activities328,901 (1,208,664)(409,083)
Financing and miscellaneous activities:
Other cash provided (applied):
Borrowed money(235,000)235,000 — 
Surplus note— — (33,006)
Net deposits on deposit type contracts288,122 822,786 80,426 
Net capital and surplus paid in40,000 579,117 — 
Funds withheld under reinsurance treaty
— — (20,539)
Other cash (applied) provided (185,797)3,760,230 (11,783)
Net cash (used) provided in financing and miscellaneous activities(92,675)5,397,133 15,098 
Net (decrease) increase in cash, cash equivalents and short-term investments52,295 128,295 (11,565)
See Notes to Statutory Basis Financial Statements.
8

SECURITY LIFE OF DENVER INSURANCE COMPANY
Statements of Cash Flows—Statutory Basis
Year ended December 31
202220212020
(In Thousands)
Cash, cash equivalents and short-term investments:
Beginning of year366,847 238,552 250,118 
End of year$419,142 $366,847 $238,552 
Note: Supplemental disclosures of cash flow information for non-cash transactions:
Noncash capital contribution from parent$— $60,982 $— 
Assets acquired from reinsurance treaties— 16,531,143 — 
Contribution of Roaring River II, Inc from parent— 76,000 — 
Surplus note forgiveness— 96,006 — 
Transfer of Roaring River IV Holding, LLC to Voya Financial, Inc.— 39,908 — 
Investment exchange217,113 — — 
Interest capitalization25,251 — — 
LP stock distribution894 — — 

See Notes to Statutory Basis Financial Statements.
9

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


1.Organization and Significant Accounting Policies
Business
Security Life of Denver Insurance Company (the “Company”) is domiciled in Colorado and is a wholly-owned subsidiary of Resolution Life Colorado Inc.
On January 4, 2021, the Company's then ultimate parent, Voya Financial, Inc., consummated a series of transactions (collectively, the “Individual Life Transaction”) pursuant to a Master Transaction Agreement dated December 18, 2019 (the "Resolution MTA") with Resolution Life U.S. Holdings Inc. ("Resolution Life US"), pursuant to which Resolution Life US through its wholly owned Colorado life insurance subsidiary, Resolution Life Colorado Inc. ("RLCO") acquired all of the shares of the capital stock of the Company, Security Life of Denver International Limited ("SLDI"), Roaring River II, Inc. ("RRII") as well as several subsidiaries of the Company. The Company also contributed Roaring River IV Holding, LLC ("RR4H"), a former subsidiary, to another Voya Financial, Inc. affiliate. As part of the Individual Life Transaction, Voya Financial, Inc. reinsured to the Company certain in scope individual life insurance and annuities business of several of the Company’s former affiliates.
Effective with the Individual Life Transaction, the Company began focusing on the acquisition and management of closed blocks of life insurance policies and annuity contracts. In addition, the Company continues to administer business previously sold. Currently the Company is licensed in all states (approved for reinsurance only in New York), the District of Columbia, Guam, the U.S. Virgin Islands and Puerto Rico. The Company ceased issuing new direct business in 2018.

On October 12, 2022, Resolution Life Group Holdings L.P. ("Group"), the ultimate parent of Resolution Life UK Holdings Limited, entered into an agreement with Rome Holdco L.P. (“Blackstone”) to sell the shares of Resolution Life Group Holdings Ltd. and its respective direct and indirect subsidiaries (which includes the Company as a wholly owned subsidiary of the Group) to a newly-formed Bermuda-domiciled partnership (the “New Partnership”). Affiliates of Blackstone will serve as the general partner of the New Partnership and as an investment manager for the assets supporting the insurance business of the New Partnership’s subsidiaries. Closing is subject to regulatory approvals and anticipated to occur in the second half of 2023. Because this transaction will result in a change of control of the Company, a Form A has been filed and is pending before the Colorado Division of Insurance of the Department of the Regulatory Agencies of the State of Colorado ("Colorado Division of Insurance").

10

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


Use of Estimates
The preparation of the financial statements of the Company requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein.
Correction of Errors
In 2022, the Company determined that it had overstated Interest Maintenance Reserve by $60.2 and understated reinsurance receivables by $38.1 in the prior year related to certain tendered bond transactions. The tax effect of this adjustment was an increase in current federal income taxes payable of $3.8. The net impact of this correction on surplus was an increase of $94.5.
In 2021, the Company did not have any correction of errors.
In 2020, the Company determined that it had understated a reinsurance payable in prior years by $15.9. To correct this error, the Company recognized a cumulative prior period adjustment decrease to surplus of $12.6 net of tax. The tax effect of this adjustment was a decrease in taxes payable of $3.3.
Also in 2020, the Company determined that it had overstated a reinsurance deferred gain in prior years by $14.9. To correct this error, the Company decreased deferred gain $14.9 and recognized a cumulative prior period adjustment decrease to surplus of $1.0 net of tax. The tax effect of this adjustment was a decrease in taxes payable of $3.7.
Basis of Presentation
The accompanying financial statements of the Company have been prepared in conformity with accounting practices prescribed or permitted by the Colorado Division of Insurance, which practices differ from United States Generally Accepted Accounting Principles (“U.S. GAAP”). The Colorado Division of Insurance recognizes only statutory accounting practices prescribed or permitted by the State of Colorado for determining and reporting the financial condition and results of operations of an insurance company and for determining its solvency under the Colorado Insurance Laws ("CO SAP"). The National Association of Insurance Commissioners' (“NAIC”) Accounting Practices and Procedures Manual ("NAIC SAP") has been adopted as a component of prescribed practices by the State of Colorado. The Colorado Commissioner of Insurance (“Commissioner”) has the right to permit other specific practices that deviate from NAIC SAP.

The Company is required to identify accounting practices where CO SAP departs from NAIC SAP. For the years ended December 31, 2022, 2021, and 2020, the Company had no such accounting practices.
11

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


On January 4, 2021, the Company, with the permission of the Colorado Division of Insurance, restated the gross paid-in and contributed surplus and the unassigned funds components of surplus, as of January 4, 2021, similar to the restatement of surplus that occurs pursuant to the prescribed accounting guidance for a quasi-reorganization under Statements of Statutory Accounting Principles (“SSAP”) No. 72, Surplus and Quasi-Reorganizations. The restatement resulted in a decrease to gross paid-in and contributed surplus and an increase in unassigned surplus of $477.5. This had no net impact on net income, total capital and surplus or risk-based capital.

The effective dates of all quasi-reorganizations in the prior 10 years are May 8, 2013 and January 4, 2021.

Below are descriptions of the significant differences between CO SAP and U.S. GAAP:
Investments: Investments in bonds and redeemable preferred stocks are reported at amortized cost or fair value based on a designation assigned by the NAIC.
The Company periodically reviews the value of its investments in bonds and redeemable preferred stocks. If the fair value of any investment falls below its cost basis, the decline is analyzed to determine whether it is an other-than-temporary-impairment ("OTTI"). To make this determination for each security, the following are some of the factors considered:
•The length of time and the extent to which the fair value has been below cost.
•The financial condition and near-term prospects of the issuer of the security, including any specific events that may affect its operations or earnings potential.
•The Company's intent to sell the security prior to its maturity at an amount below its carrying value.
•The Company's intent and ability to hold the security long enough for it to recover its fair value.

Based on the analysis, the Company makes a judgment as to whether the decline in fair value is other-than-temporary. When an OTTI is recorded because there is intent to sell or the Company does not have the intent and ability to hold the security for a period of time sufficient to recover the amortized cost basis, the security is written down to fair value. The interest related OTTI is deferred through the interest maintenance reserve (“IMR”) and the non-interest related OTTI is included in the asset valuation reserve (“AVR”) in the period that the OTTI is considered to have occurred as prescribed by the NAIC.  Losses resulting from OTTI charges, net of transfers to IMR and federal income tax, are recorded within net realized capital gains (losses) in the statements of operations.
The Company invests in structured securities, including residential mortgage backed securities, commercial mortgage backed securities and other asset backed securities. Structured securities are reported at the lower of amortized cost or fair value based on a designation assigned by the NAIC.
12

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


Net realized gains and losses on disposed investments are reported in the statements of operations, net of federal income tax and transfers to the IMR.
Under U.S. GAAP, fixed maturities are designated at purchase as held to maturity, trading or available-for-sale, except for those accounted for using the fair value option ("FVO"). Held to maturity investments are reported at amortized cost and the remaining fixed maturity investments are reported at fair value. For those designated as trading, changes in fair value are reported in the statements of operations. Available-for-sale securities are reported at fair value with changes in fair value reported as a separate component of other comprehensive income (loss) in shareholder’s equity. Using the FVO, securities are reported at fair value with changes in fair value reported in the statements of operations.
When an impairment is determined, the individual security is written down from amortized cost to fair value, and a corresponding charge is recorded in net realized capital gains (losses) in the statements of operations as impairments.
Asset Valuation Reserve: The AVR is intended to establish a reserve to offset potential credit related investment losses on most invested asset categories. AVR is determined by an NAIC prescribed formula and is reported as a liability rather than as a valuation allowance or an appropriation of surplus. The change in AVR is reported directly to unassigned surplus. Under currently effective U.S. GAAP guidance, no such reserve is required.
Interest Maintenance Reserve: Under a formula prescribed by the NAIC, the Company defers the portion of realized gains and losses on sales of fixed income investments, principally bonds and mortgage loans, attributable to changes in the general level of interest rates and amortizes those deferrals over the remaining period to maturity based on groupings of individual securities sold in five year bands. The Company reports the net deferral of IMR gains as a liability on the accompanying statements of admitted assets, liabilities and capital and surplus. When the net deferral of IMR is a loss, the amount is reported as a component of other assets and nonadmitted. Under U.S GAAP, gains and losses on disposal of fixed-income investments are reported in the period that the assets are sold.
Cash, Cash Equivalents and Short-Term Investments: Cash includes cash on deposit with banks. Cash equivalents includes short-term highly liquid investments with original maturities of three months or less at the date of purchase. Short-term investments include investments with remaining maturities of one year or less, but greater than three months, at the time of purchase, excluding those investments classified as cash equivalents.
Under U.S. GAAP, the corresponding caption of cash and cash equivalents does not include short-term investments.
Derivatives: The Company follows the hedge accounting guidance in SSAP No. 86, Derivatives (“SSAP No. 86”) for derivative transactions entered into or modified on or after January 1, 2003. Under SSAP No. 86, derivatives that are deemed effective hedges are
13

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


accounted for entirely in a manner which is consistent with the underlying hedged item. Derivatives used in hedging transactions that do not meet the requirements of SSAP No. 86 as an effective hedge are carried at fair value with the change in value recorded in surplus as unrealized gains or losses. For derivatives that are deemed replication (synthetic asset) transactions, if the replication (synthetic asset) transaction would be carried at amortized cost and the cash instrument used is carried at amortized cost, then the derivative used should be carried at amortized cost. If the replication (synthetic asset) transaction would be carried at fair value, and/or the cash instrument used is carried at fair value, then the derivative used should be carried at fair value. Any premium paid or received to enter into the derivative is carried as an asset or liability on the balance sheet. Premiums paid or received on the replication (synthetic asset) derivative are amortized into investment income until the exercise, termination or maturity date of the derivative. Embedded derivatives are not accounted for separately from the host contract.

Under U.S. GAAP, for cash flow hedges, the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income and reclassified into earnings in the same periods during which the hedged transaction impacts earnings in the same line item associated with the forecasted transaction. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument, as well as the hedged item, to the extent of the risk being hedged, are recognized in net realized capital gains (losses). For derivative instruments that are not designated in a hedge relationship, the gain or loss on the derivative instrument is recognized in other net realized capital gains (losses). An embedded derivative within a contract that is not clearly and closely related to the economic characteristics and risk of the host contract is reported with the host contract on the balance sheets at fair value, and the change in fair value is recorded in income.

Mortgage Loans: Mortgage loans are reported at amortized cost, less write downs for impairments. If the value of any mortgage loan is determined to be impaired (i.e., when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement), the carrying value of the mortgage loan is reduced to the lesser of either the present value of expected cash flows from the loan, discounted at the loan’s original purchase yield or fair value of the collateral. For those mortgages that are determined to require foreclosure, the carrying value is reduced to the fair value of the underlying collateral, net of estimated costs to obtain and sell at the point of foreclosure. The carrying value of the impaired loans is reduced by establishing a permanent write-down recorded in net realized capital gains (losses).
Under currently effective U.S. GAAP guidance, the Company reports mortgage loans at amortized cost, net of an estimated allowance for loan and lease losses ("ALLL"). The Company estimates the ALLL balance based on a consistently applied analysis of the loan portfolio and takes into consideration all available information, including industry, geographical, economic and political factors. The change in the ALLL is recorded in net realized capital gains
14

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


(losses) in the statements of operations. Loans are written off against the ALLL when the Company has confirmed a loan balance is not collectible.
Deferred Income Taxes: Deferred tax assets and liabilities represent the future tax recoveries or obligations associated with the accumulation of temporary differences between the tax and financial statement bases of the Company’s assets and liabilities. A valuation allowance is required if based on the available evidence; it is more likely than not (a likelihood of more than 50 percent) that some portion or all of the gross deferred tax assets will not be realized. This assessment is determined on a separate reporting entity basis.
After reduction for any valuation allowance, the Company follows the admissibility formula prescribed under SSAP No. 101, Income Taxes ("SSAP No. 101"). These provisions limit the amount of gross deferred tax assets that can be admitted to surplus to those for which ultimate recoverability can be demonstrated. This limitation is based on availability of taxes paid in prior years that could be recovered through carrybacks, the expected timing of reversals for accumulated temporary differences over the next three years to offset future taxes, surplus limits, and the amount of gross deferred tax liabilities available for offset. Any deferred tax assets not covered under the formula are nonadmitted.
SSAP No. 101 requires all changes in deferred tax balances to be included as surplus adjustments; under U.S. GAAP, however, most changes in deferred tax balances are recorded in the income statement (with the exception of certain items that are recorded through Other Comprehensive Income or directly to the equity section of the balance sheet) as a component of the total income tax provision.
U.S. GAAP also requires that deferred taxes be included for all jurisdictions that determine taxes based on income. Thus deferred state income taxes must be recorded under U.S. GAAP. SSAP No. 101, however, specifically prohibits establishing deferred state income tax assets and liabilities.
Policy Acquisition Costs: The costs of acquiring and renewing business are expensed when incurred.
Under U.S. GAAP, incremental, direct costs of contract acquisition and certain costs related directly to successful acquisition activities are capitalized. Indirect or unsuccessful acquisition costs, maintenance, product development and overhead expenses are charged to expense as incurred. In addition, the outstanding value of in force business acquired is capitalized. For certain traditional life insurance, to the extent recoverable from future gross profits, acquisition costs are amortized over the premium payment period in proportion to the present value of expected gross premium. For universal life insurance and investment products, to the extent recoverable from future gross profits, acquisition costs are amortized over the estimated lives of the contracts in relation to the emergence of estimated gross profits.
15

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


Premiums: Life premiums are recognized as revenue when due. Premiums for annuity policies with mortality and morbidity risk, except for guaranteed interest and group annuity contracts, are also recognized as revenue when due. Premiums received for annuity policies without mortality or morbidity risk and for guaranteed interest and group annuity contracts are recorded using deposit accounting.
Under U.S. GAAP, premiums related to traditional life insurance contracts and payout contracts with life contingencies are recognized as revenue when due. Amounts received for investment-type, universal life-type, fixed annuities, payout contracts without life contingencies and fixed-indexed annuity contracts are reported as deposits to contract owner account balances. Revenues from these contracts consist primarily of fees assessed against the contract owner account balance for mortality and policy administration charges.
Benefits Paid or Provided: Benefits incurred for universal life and annuity policies represent the total of death benefits paid and the change in policy reserves.
Under U.S. GAAP, benefits and expenses for investment-type, universal life-type, fixed annuities, payout contracts without life contingencies and fixed-indexed annuity contracts include claims in excess of related account balances, expenses of contract administration and interest credited to contract owner account balances.
Benefit and Contract Reserves: Life policy and contract reserves under statutory accounting practices are calculated based upon both the net level premium method and Commissioners’ Reserve Valuation method (“CRVM”) using statutory rates for mortality and interest. Similarly, the Commissioners' Annuity Reserve Valuation method ("CARVM") is used for annuity reserve calculations.
Under U.S. GAAP, policy reserves for traditional products are based upon the net level premium method utilizing best estimates of mortality, interest, and withdrawals prevailing when the policies were sold, including a provision for adverse deviation. For interest sensitive products, the U.S. GAAP policy reserve is equal to the policyholder account balance plus an unearned revenue reserve which reflects the unamortized balance of early year policy loads over renewal year policy loads.
Reinsurance: Policy and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves. Commissions allowed by reinsurers on business ceded are reported as income when received. Losses generated in certain reinsurance transactions are recognized immediately in income, with gains reported as a separate component of surplus and amortized over the remaining life of the business. For business ceded to unauthorized reinsurers, statutory accounting practices require that reinsurance credits permitted by the treaty be recorded as an offsetting liability and charged against unassigned surplus.
Under U.S. GAAP, ceded future policy benefits and contract owner liabilities are reported gross on the balance sheets. Only those reinsurance recoverable balances deemed probable of
16

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


recovery are reflected as assets on the balance sheets and are stated net of allowances for credit losses, which are charged to earnings. Gains and losses on reinsurance, including commission and expense allowances, are deferred and amortized over the remaining life of the business.
Nonadmitted Assets: Certain assets designated as “nonadmitted,” principally disallowed interest maintenance reserves, non-operating system software, past due agents’ balances, furniture and equipment, intangible assets, and other assets not specifically identified as an admitted asset within the NAIC SSAP, are excluded from the accompanying balance sheets and are charged directly to unassigned surplus. In addition, non-admitted assets include deferred tax assets that are not admissible under SSAP No. 101.  See Deferred Income Taxes above.
Under U.S. GAAP, the concept of nonadmitted assets is not recognized.
Consolidation: The accounts and operations of the Company's subsidiaries are not consolidated. Certain affiliated investments for which audited U.S. GAAP statements are not available, or expected to be available, are nonadmitted.
Under U.S. GAAP, the accounts and operations of the Company’s wholly owned subsidiaries are consolidated. Intercompany transactions and balances are eliminated.
Limited partnerships: Limited partnerships are reported at the underlying audited U.S. GAAP equity of the investee. Changes in the value of the partnership are recorded in unassigned surplus. Capital contributions and distributions of capital are reflected in the carry value of the partnership. Distributions of income are reported in investment income up to the amount of net investment income earned in the partnership and otherwise as return of capital.
Under U.S. GAAP, limited partnerships are reported at the underlying audited U.S. GAAP equity of the investee. Changes in the value of the partnership are recorded in the statements of operations. Capital contributions and distributions of capital are reflected in the carry value of the partnership.
Surplus Notes: Surplus notes issued are reported as a component of surplus on the statements of admitted assets, liabilities and capital and surplus. Under statutory accounting practices, no interest is recorded on the surplus notes until payment has been approved by the Colorado Division of Insurance. 
Under U.S. GAAP, surplus notes are reported as long-term debt, and the related interest is reported as a change to earnings over the term of the notes.
Reconciliation to U.S. GAAP: The effects of the preceding variances from U.S. GAAP on the accompanying statutory basis financial statements have not been determined, but are presumed to be material.
17

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


Other significant accounting practices are as follows:
Investments: Investments are stated at values prescribed by the NAIC, as follows:
Bonds not backed by other loans are stated at either amortized cost or the lower of amortized cost or fair value. Amortized cost is determined using the constant yield or yield to worst method.
The Company does not have any NAIC's Securities Valuation Office ("SVO")-Identified investments as defined in SSAP No. 26R, Bonds.
Loan-backed securities are stated at either amortized cost or the lower of amortized cost or fair value. Amortized cost is determined using the effective interest method and includes anticipated prepayments. Residual interests of loan-backed and structured securities, which are included in other invested assets on the statements of admitted assets, liabilities, and capital and surplus, are reported at lower of amortized cost or fair value, with changes in fair value recorded as unrealized gains and losses in Surplus.
Redeemable preferred stocks rated as highest quality, high quality or medium quality are reported at amortized cost. All other redeemable preferred stocks are reported at the lower of amortized cost or fair value and perpetual preferred stocks are reported at fair value not to exceed any currently effective call price.
Common stocks are reported at fair value, and the related unrealized capital gains/losses are reported in unassigned surplus along with adjustment for federal income taxes. Federal Home Loan Bank ("FHLB") common stock is priced at par value.
The Company participates in short-term bilateral repurchase agreements with unaffiliated financial institutions. Under these agreements, the Company sells bonds and receives cash in the amount generally equal to 95% of the estimated fair value of bonds sold at the inception of the transaction, with a simultaneous agreement to repurchase such bonds at a future date or on demand in an amount equal to the cash initially received plus interest. The ratio of cash held to the estimated fair value of the bonds sold is monitored throughout the duration of the transaction and additional cash or securities are obtained as necessary. Bonds sold under such transactions may be sold or re-pledged by the transferee. Income and expense associated with repurchase agreements are recorded in net investment income. As of December 31, 2022 and 2021 the Company did not have any open repurchase agreements.
The Company no longer engages in securities lending. In connection, with the closing of the Individual Life Transaction, securities lending was terminated June 30, 2020.
Short-term investments are reported at amortized cost which approximates fair value.
18

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


Partnership interests, which are included in other invested assets, are reported at the underlying audited U.S. GAAP equity of the investee. Changes in surplus from distributions are reported in investment income.
Surplus notes acquired, which are included in other invested assets on the statements of admitted assets, liabilities and capital and surplus, are reported at amortized cost using the effective interest method.
Realized capital gains and losses are generally determined using the first in first out method. Specific lot identification may be used occasionally when executing a particular investment objective.
Investment income from bonds primarily consists of interest and is recognized on an accrual basis using the effective yield method giving effect to amortization of premium and accretion of discount. Income from prepayment premiums and bond tenders are also recorded in net investment income. Included within bonds are structured securities, including residential mortgage backed securities, commercial mortgage backed securities and other asset backed securities. Amortization of the premium or discount from the purchase of these securities considers the estimated timing and amount of prepayments of the underlying collateral. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the prepayments originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for structured securities are estimated by management using inputs obtained from third-party specialists, including broker-dealers, and based on management's knowledge of the current market. For structured securities, which represent beneficial interests in securitized financial assets that are not of high credit quality or that have been credit impaired, the effective yield is recalculated on a prospective basis. For all other structured securities, the effective yield is recalculated on a retrospective basis.
For structured securities in unrealized loss positions, the Company determines whether it has the intent to sell or the intent and ability to hold the security for a period of time sufficient to recover the amortized cost. If the Company has the intent and ability to hold the security to recovery, the Company must compare the present value of the expected future cash flows for this security to its carrying value. If the present value of the expected future cash flows for the security is lower than its carrying value, the security is written down to its present value of the expected future cash flows.
The Company’s use of derivatives is primarily for economic hedging purposes to reduce the Company’s exposure to cash flow variability of assets and liabilities, interest rate risk, credit risk, foreign exchange, and market risk. For those derivatives in effective hedging relationships, the Company values all derivative instruments on a consistent basis with the hedged item. Upon termination, gains and losses on instruments are included in the carrying values of the underlying hedged items and are amortized over the remaining lives of the hedged items as adjustments to investment income or benefits from the hedged items. Any
19

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


unamortized gains or losses are recognized when the underlying hedged items are sold. The unrealized gains and losses from derivatives not designated in effective hedging relationships are reported at fair value through surplus. Upon termination, interest related gains and losses on asset hedges are included in IMR and are amortized over the remaining lives of the derivatives; other gains and losses are added to the AVR.
Credit Contracts:
Credit default swap indices: Credit default swap indices are used to reduce credit loss exposure with respect to certain assets that the Company owns, or to assume credit exposure on certain assets that the Company does not own. Payments are made to or received from the counterparty at specified intervals. In the event of a default on the underlying credit exposure, the Company will either receive a payment (purchased credit protection) or will be required to make a payment (sold credit protection) equal to the par minus recovery value of the swap contract. The Company utilizes these contracts in replication transactions.
Equity Contracts:
Options: The Company uses options to hedge against changes in the value of the benefit contained in the indexed universal life and indexed annuity products. The Company pays an upfront premium to purchase these options. The Company utilizes these options in non-qualifying hedging relationships.
Futures: The Company uses equity futures contracts to hedge against equity index movement. Changes in the general level of index value can result in adverse changes in the portfolio. The Company enters into exchange traded futures and pays or receives futures commissions that are set by members of the exchange. The Company also posts initial and variation margin with the exchange on a daily basis. The Company utilizes exchange-traded futures in non-qualifying hedging relationships.
Foreign Exchange Contracts:
Currency Forwards: The Company uses currency forward contracts to hedge currency exposure related to its invested assets. The Company utilizes these contracts in non-qualifying hedging relationships.
Foreign exchange swaps: The Company uses foreign exchange or currency swaps to reduce the risk of change in the value, yield or cash flows associated with certain foreign denominated invested assets. Foreign exchange swaps represent contracts that require the exchange of foreign currency cash flows against U.S. dollar cash flows at regular periods, typically quarterly or semi-annually. The Company utilizes these contracts in qualifying hedging relationships.
20

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


Interest Rate Contracts:
Interest rate swaps: Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and/or liabilities. Interest rate swaps are also used to hedge the interest rate risk associated with the value of assets it owns. Using interest rate swaps, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest payments, calculated by reference to an agreed upon notional principal amount. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made to/from the counterparty at each due date. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships.
Total Return Swaps: The Company uses Total Return Swaps to to hedge interest rate risk associated with the Company's universal life insurance products. The Company utilizes these contracts in a non-qualifying hedging relationship.
Investments in Subsidiary: SSAP No. 97, Investments in Subsidiary, Controlled and Affiliated Entities (“SSAP No. 97”), applies to the Company’s subsidiaries, controlled and affiliated entities (“SCA”). The Company’s insurance subsidiaries are reported at their underlying audited statutory equity modified to remove the impact of any permitted or perscribed accounting practices that depart from the NAIC SAP, and the Company’s non-insurance subsidiaries are reported at the underlying audited U.S. GAAP equity amount, adjusted to a limited statutory accounting basis as promulgated by NAIC SAP. Dividends from subsidiaries are included in net investment income. The net change in the subsidiaries’ equity is included in the change in net unrealized capital gains or losses. SCA entities for which audited statements are not available or expected to be available are nonadmitted. Management regularly reviews its SCAs to determine if an other-than-temporary impairment has occurred. During this review, management makes a judgment as to whether it is probable that the reporting entity will be unable to recover the carrying amount of the investment or there is evidence indicating inability of the investee to sustain earnings.
Contract Loans: Contract loans are reported at unpaid principal balances but not in excess of the cash surrender value.
Aggregate Reserve for Life Policies and Contracts: Life, annuity and accident and health reserves are developed by actuarial methods and are determined based on published tables using statutorily specified interest rates and valuation methods that will provide, in the aggregate, reserves that are greater than or equal to the minimum or guaranteed policy cash value or the amounts required by law. Interest rates range from 2.5% to 8.0% for 2022.

The Company waives the deduction of deferred fractional premiums upon the death of the insured. It is the Company’s practice to return a pro rata portion of any premium paid beyond the policy month of death, although it is not contractually required to do so for certain issues.
21

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


A reserve has been established of $1,171.7 and $1,128.3 for any surrender value promised in excess of the legally computed reserves at December 31, 2022 and 2021, respectively.

The methods used in valuation of substandard policies are as follows:

For life, endowment and term policies issued substandard, the standard reserve during the premium paying period is increased by 50% of the gross annual extra premium. Standard reserves are held on Paid-Up Limited Pay contracts.

For reinsurance accepted with table rating, the reserve established is a multiple of the standard reserve corresponding to the table rating.

For reinsurance with flat extra premiums, the standard reserve is increased by 50% of the flat extra.

The amount of insurance in force for which the gross premiums are less than the net premiums, according to the standard of valuation required by the Colorado Division of Insurance, is $8,123.6 and $7,910.9 at December 31, 2022 and 2021, respectively.

The amount of premium deficiency reserves for policies on which gross premiums are less than the net premiums is $579.0 and $616.5 at December 31, 2022 and 2021, respectively.

The tabular interest has been determined from the basic data for the calculation of policy reserves for all direct ordinary life insurance and for the portion of group life insurance classified as group under Internal Revenue Code ("IRC") Section 79. The method of determination of tabular interest of funds not involving life contingencies is as follows: current year reserves, plus payments, less prior year reserves, less funds added.
The Company has two blocks of life insurance business subject to Valuation Manual 20: Requirements for Principle-Based Reserves ("PBR") for Life Products ("VM-20"). They are variable universal life COLI policies issued after January 1, 2020 and individual life term conversion policies issued on or after January 1, 2021 as a result of a conversion from acquired term insurance not subject to PBR. The Company was exempt from PBR VM-20 with respect to individual life term conversion policies issued in 2020. The domiciliary regulator had determined that, given the insignificant effect on reserves, a Life PBR exemption is appropriate.
22

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


Reinsurance: Reinsurance premiums, commissions, expense reimbursements, and reserves related to reinsured business are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Reserves are based on the terms of the reinsurance contracts and are consistent with the risks assumed. Premiums and benefits ceded to other companies have been reported as a reduction of premium revenue and benefits expense. Amounts applicable to reinsurance ceded for reserves and unpaid claim liabilities have been reported as reductions of these items, and expense allowances received in connection with reinsurance ceded have been reflected in operations. The Company establishes a receivable for amounts due from reinsurers for claims paid and other amounts recoverable under the terms of the reinsurance contracts.
Benefit Plans: Prior to the Individual Life Transaction, the Company sponsored a non-contributory supplemental retirement non-qualified plan covering U.S. employees. The obligation was released as part of the Individual Life Transaction. As of December 31, 2021, the Company did not have any further obligations to the plan. The Company, through its parent or affiliates, also provides a contributory retirement plan for substantially all employees.
Participating Insurance: Participating business approximates less than 50% of the Company’s ordinary life insurance in force and less than 1% of premium income. The amount of dividends to be paid to participating policyholders is determined annually by the Board of Directors. Amounts allocable to participating policyholders are based on published dividend projections or expected dividend scales. Policyholder dividends are recognized when declared.
Nonadmitted Assets: Nonadmitted assets are summarized as follows:
December 31
20222021
(In Thousands)
Net deferred tax asset285,489 311,986 
Investment income due and accrued— 5,660 
Other4,451 4,390 
Total nonadmitted assets$289,940 $322,036 
Changes in nonadmitted assets are reported directly in unassigned surplus as an increase or decrease in nonadmitted assets.
Claims and Claims Adjustment Expenses: Claims expenses represent the estimated ultimate net cost of all reported and unreported claims incurred through December 31, 2022. The Company does not discount claims and claims adjustment expense reserves. Such estimates are based on actuarial projections applied to historical claim payment data. Such liabilities are considered to be reasonable and adequate to discharge the Company’s obligations for claims incurred but unpaid as of December 31, 2022.
23

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


Separate Accounts: Most separate account assets and liabilities held by the Company represent funds held for the benefit of the Company’s variable life and annuity policy and contract holders who bear all of the investment risk associated with the policies. Such policies are of a non-guaranteed nature. All net investment experience, positive or negative, is attributed to the policy and contract holders’ account values. The assets and liabilities of these accounts are carried at fair value and are legally segregated and are not subject to claims that arise out of any other business of the Company. There are no product classification differences under U.S. GAAP.
Other Assets: As part of the Company's retained asset program, the Company records a receivable for amount due from other insurance companies that has not been collected. Amounts are generally collected within 90 days of notification that the policyholder has entered the Company's retained asset program.
The Company is also the owner and beneficiary of life insurance policies included in other assets at their cash surrender values. The following table shows assets that could be realized from an investment vehicle on these policies as of December 31, 2022 and 2021:
20222021
(In Thousands)
Amount of admitted balance that could be realized from an investment vehicle $10,910 $15,854 
Percentage Bonds40 %40 %
Percentage Stocks60 %60 %
Reclassifications: Certain reclassifications may be made to prior year amounts to maintain comparability of the years presented.
24

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


2.    Investments
Bonds, Preferred Stocks and Common Stocks
The book/adjusted carrying value or cost and fair value of bonds, preferred stocks and common stocks are as follows:
Book/Adjusted Carrying ValueGross Unrealized GainsGross Unrealized LossesFair Value
(In Thousands)
At December 31, 2022
Bonds
U.S. Treasury securities and obligations of U.S. government corporations and agencies$341,497 $5,125 $52,459 $294,163 
States, municipalities, and political subdivisions916,323 1 208,203 708,121 
Foreign other3,379,899 11,242 617,480 2,773,661 
Foreign government289,290 2,349 55,405 236,234 
Corporate securities12,954,043 16,935 2,952,671 10,018,307 
Residential mortgage backed securities1,882,309 19,631 456,551 1,445,389 
Commercial mortgage backed securities2,579,255 874 535,676 2,044,453 
Other asset backed securities2,133,912 101 107,723 2,026,290 
Total bonds$24,476,528 $56,258 $4,986,168 $19,546,618 
Preferred stocks
Preferred stocks - unaffiliated$8,579 $— $517 $8,062 
CostGross Unrealized GainsGross Unrealized LossesFair Value
Common Stocks
Common stocks - unaffiliated$89,412 $369 $4,659 $85,122 
Book/Adjusted Carrying ValueGross Unrealized GainsGross Unrealized LossesFair Value
At December 31, 2021
Bonds
U.S. Treasury securities and obligations of U.S. government corporations and agencies$995,803 $171,560 $21,939 $1,145,424 
States, municipalities, and political subdivisions1,112,697 39,715 9,442 1,142,970 
Foreign other3,605,441 193,123 48,994 3,749,570 
Foreign government334,626 16,732 10,386 340,972 
Corporate securities14,466,976 830,104 213,291 15,083,789 
Residential mortgage backed securities1,894,599 44,604 43,832 1,895,371 
Commercial mortgage backed securities2,045,765 59,642 29,830 2,075,577 
Other asset backed securities1,238,429 14,876 8,024 1,245,281 
Total bonds$25,694,336 $1,370,356 $385,738 $26,678,954 
Preferred stocks
Preferred stocks - unaffiliated$11,048 $191 $110 $11,129 
CostGross Unrealized GainsGross Unrealized LossesFair Value
Common stocks
Common stocks - unaffiliated$73,643 $92 $769 $72,966 
25

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


The aggregate fair value of bonds, preferred stocks, and common stocks with unrealized losses and the time period that book/adjusted carrying value exceeded fair value are as follows:
Less than 12 Months Greater than 12 MonthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
(In Thousands)
At December 31, 2022
Bonds$10,441,943 $2,331,849 $7,672,554 $2,654,319 $18,114,497 $4,986,168 
Preferred stocks— — 2,928 517 2,928 517 
Common stocks6,708 4,344 120 315 6,828 4,659 
At December 31, 2021
Bonds12,327,491 372,095 331,469 13,644 12,658,960 385,739 
Preferred stocks5,390 110 — — 5,390 110 
Common stocks4,267 709 392 60 4,659 769 

The book/adjusted carrying value and fair value of investments in bonds at December 31, 2022, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Book/Adjusted Carrying ValueFair Value
(In Thousands)
Maturity:
Due in 1 year or less$148,585 $146,592 
Due after 1 year through 5 years1,032,061 954,974 
Due after 5 years through 10 years2,409,117 2,100,447 
Due after 10 years14,291,289 10,828,473 
17,881,052 14,030,486 
Residential mortgage backed securities1,882,309 1,445,389 
Commercial mortgage backed securities2,579,255 2,044,453 
Other asset backed securities2,133,912 2,026,290 
Total$24,476,528 $19,546,618 
The following table shows prepayment penalty and acceleration fees for the years ended December 31, 2022, 2021, and 2020:
20222021*2020
(Dollars In Thousands)
General Account
Number of CUSIPs53 38 41 
Aggregate Amount of Investment Income$29,343 $7,455 $900 
* 2021 did not include amounts related to certain bond tender transactions. See Corrections of Error in Note 1.
26

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


The following table shows 5GI securities at December 31, 2022 and 2021:
InvestmentNumber of 5GI Securities
Aggregate Book/Adjusted Carrying Value (BACV)
Aggregate Fair Value
202220212022202120222021
(In Thousands)
Bonds - AC13 12 $2,938 $483 $3,340 $574 
LB&SS- AC16 16 2,042 2,322 3,193 6,431 
Total29 28 $4,980 $2,805 $6,533 $7,005 
AC- Amortized Cost LB- Loan-backed Securities SS- Structured Securities
Mortgage Loans
All mortgage loans are evaluated by seasoned underwriters, including an appraisal of loan-specific credit quality, property characteristics, and market trends, and assigned a quality rating using the Company’s internally developed quality rating system. The Company's mortgage loans on real estate are all commercial mortgage loans, held for investment.

The maximum and minimum lending rates for mortgage loans initiated during 2022 were: Commercial loans - 2.4% and 7.0%; Mezzanine Loans - 5.0% and 6.7%.

There were no taxes, assessments or any amounts advanced and not included in the mortgage loan total as of December 31, 2022 and 2021.    

Property insurance is required on all collateral securing commercial real estate mortgage loans. Generally the coverage is “all risk” at a level equal to the replacement cost of the improvements. Additional coverage may be required to cover flood, windstorm and other risks associated with collateral type, use and location. 

During 2022, the maximum percentage of any loan to the value of collateral at the time of the loan, exclusive of insured or guaranteed or purchase money mortgages was 63.34% on commercial properties.

27

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


The following table shows an age analysis of mortgage loans by type and mortgage loans in which the insurer is a participant or co-lender in a mortgage loan agreement as of December 31, 2022 and 2021:
Commercial
All OtherMezzanineTotal
(In Thousands)
December 31, 2022
Recorded investment (all)
Current$2,572,018 $59,690 $2,631,708 
Participant or Co-lender in a Mortgage Loan Agreement
Recorded Investment$2,099,301 $59,690 $2,158,991 
December 31, 2021
Recorded investment (all)
Current$2,452,617 $— $2,452,617 
Participant or Co-lender in a Mortgage Loan Agreement
Recorded Investment$2,014,194 $— $2,014,194 
The Company had no investments in impaired mortgage loans with or without an allowance for credit losses or in any impaired loans subject to a participant or co-lender mortgage loan agreement for which the Company is restricted from unilaterally foreclosing on the mortgage loan as of December 31, 2022 and 2021.
28

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)



The following table shows investments in impaired mortgage loans held by the Company and the related average recorded investment, the interest income recognized and the investments on nonaccrual status pursuant to SSAP No. 34, Investment Income Due and Accrued as of December 31, 2022, 2021 and 2020:
Commercial
InsuredAll OtherTotal
(In Thousands)
December 31, 2022
Average recorded investment$— $— $— 
Interest income recognized— — — 
Recorded Investments on nonaccrual status— — — 
Amount of interest income recognized using a cash-basis method of accounting— — — 
December 31, 2021
Average recorded investment$— $23,029 $23,029 
Interest income recognized— 1,220 1,220 
Recorded Investments on nonaccrual status— — — 
Amount of interest income recognized using a cash-basis method of accounting— 1,202 1,202 
December 31, 2020
Average recorded investment$— $22,517 $22,517 
Interest income recognized— 965 965 
Recorded Investments on nonaccrual status— 910 910 
Amount of interest income recognized using a cash-basis method of accounting— 972 972 
The Company recognizes interest income on its impaired loans upon receipt.

The Company has no allowances for credit losses as of December 31, 2022 and 2021.

The Company had no mortgage loans derecognized as a result of foreclosure as of December 31, 2022 and 2021.
29

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


Net Realized Capital Gains and Losses
Realized capital gains (losses) are reported net of federal income taxes and amounts transferred to the IMR are as follows:
December 31
202220212020
 (In Thousands)
Realized capital gains/(losses)$(530,317)$303,441 $14,646 
Amount transferred to IMR (net of related taxes of
$(102,779) in 2022, $78,594 in 2021, and $6,099 in 2020)
386,645 (295,663)(22,945)
Federal income tax benefit (expense) 9,699 (89,485)(1,414)
Net realized capital gains/(losses)$(133,973)$(81,707)$(9,713)
Realized capital losses include losses of $72.9, $13.9 and $14.4 related to securities that have experienced an other-than-temporary decline in value during 2022, 2021 and 2020, respectively.
Proceeds from sales of investments in bonds and other fixed maturity interest securities were $5,143.4, $7,706.0 and $662.6 in 2022, 2021 and 2020, respectively. Gross gains of $156.9, $452.1 and $34.4 and gross losses of $594.4, $122.2 and $8.1 during 2022, 2021 and 2020, respectively, were realized on those sales. A portion of the gains and losses realized in each year has been deferred to future periods in the IMR.
The Company does not have any OTTI's recognized in accordance with structured securities subject to SSAP No. 43R, Loan-backed and Structured Securities ("SSAP No. 43R") during 2022 due to intent to sell or inability or lack of intent to hold to recovery.
The following table discloses, in aggregate, the OTTI’s recognized by the Company in accordance with structured securities subject to SSAP No. 43R during 2021 due to intent to sell or inability or lack of intent to hold to recovery in 2021:
Amortized Cost Basis Before Other-than-Temporary ImpairmentOther-than-Temporary Impairment Recognized
InterestNon-interestFair Value
(In Thousands)
OTTI recognized as of December 31, 2021
Aggregate intent to sell$— $— $— $— 
Aggregate inability or lack of intent to hold to recovery55,129 — 6,381 48,748 
Total$55,129 $— $6,381 $48,748 
30

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


The following table discloses, in aggregate, the OTTI’s recognized by the Company in accordance with structured securities subject to SSAP No. 43R during 2020 due to intent to sell or inability or lack of intent to hold to recovery in 2020:
Amortized Cost Basis Before Other-than-Temporary ImpairmentOther-than-Temporary Impairment Recognized
InterestNon-interestFair Value
(In Thousands)
OTTI recognized as of December 31, 2020
Aggregate intent to sell$203 $12 $— $191 
Aggregate inability or lack of intent to hold to recovery— — — — 
Total$203 $12 $— $191 
The following table discloses in detail the OTTI’s recognized by the Company in accordance with structured securities subject to SSAP No. 43R, exclusive of intent impairments, in 2022:
CUSIPBook/Adjusted Carrying Value Amortized Cost Before Current Period OTTIPresent Value of Projected Cash FlowsRecognized Other-Than-Temporary ImpairmentAmortized Cost After Other-Than-Temporary ImpairmentFair Value at Time of OTTIDate of Financial Statement Where Reported
(In Thousands)
12668BSN4$987 $355 $633 $355 $355 12/31/2022
17311YAB93,976 3,780 196 3,780 3,780 12/31/2022
31325URK42,683 1,392 1,292 1,392 1,392 12/31/2022
3132HTZX76,691 4,599 2,092 4,599 4,599 12/31/2022
3136A1LJ2775 496 279 496 496 12/31/2022
3136AEDC850 33 16 33 33 12/31/2022
3136ARMA3455 308 146 308 308 12/31/2022
3136ATFX72,194 1,428 766 1,428 1,428 12/31/2022
3136AU4G3582 409 173 409 409 12/31/2022
3136B2CG5488 305 183 305 305 12/31/2022
3137AXJ95669 467 203 467 467 12/31/2022
3137AYAK7689 353 336 353 353 12/31/2022
3137B7BP34,509 3,304 1,205 3,304 3,304 12/31/2022
3137B8BK24,265 2,686 1,578 2,686 2,686 12/31/2022
3137BSHH9934 588 345 588 588 12/31/2022
31393G6F6228 178 50 178 178 12/31/2022
31393JC89514 402 112 402 402 12/31/2022
31393MP39384 322 61 322 322 12/31/2022
31393T5J1268 232 36 232 232 12/31/2022
31393TVC7439 313 126 313 313 12/31/2022
31393UCD3669 571 97 571 571 12/31/2022
31393WWX3125 91 34 91 91 12/31/2022
31394EKT4205 157 47 157 157 12/31/2022
31394ETR9105 94 10 94 94 12/31/2022
31394F4L6137 97 40 97 97 12/31/2022
31394KKV5441 367 74 367 367 12/31/2022
31394KZD9443 370 73 370 370 12/31/2022
31394U2Y7200 156 44 156 156 12/31/2022
31394VGQ7605 452 153 452 452 12/31/2022
31394XDK9210 151 59 151 151 12/31/2022
31

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


CUSIPBook/Adjusted Carrying Value Amortized Cost Before Current Period OTTIPresent Value of Projected Cash FlowsRecognized Other-Than-Temporary ImpairmentAmortized Cost After Other-Than-Temporary ImpairmentFair Value at Time of OTTIDate of Financial Statement Where Reported
(In Thousands)
31395CY54484 346 137 346 346 12/31/2022
31395DPQ642 25 16 25 25 12/31/2022
31395PE40248 135 113 135 135 12/31/2022
31396AAP91,025 820 205 820 820 12/31/2022
31396JPN9488 339 149 339 339 12/31/2022
31396K5P3713 476 237 476 476 12/31/2022
31396TZH9568 408 160 408 408 12/31/2022
31397KRN3636 444 193 444 444 12/31/2022
31398NL28516 320 197 320 320 12/31/2022
31398RLT04,259 3,508 751 3,508 3,508 12/31/2022
38374CDT51,150 929 221 929 929 12/31/2022
38374E6P7759 628 132 628 628 12/31/2022
38374FK45580 477 104 477 477 12/31/2022
38374GYL0123 94 29 94 94 12/31/2022
38377QGM3948 544 404 544 544 12/31/2022
38377VY673,912 3,095 817 3,095 3,095 12/31/2022
38379BGA0442 315 128 315 315 12/31/2022
38379WFS6544 333 210 333 333 12/31/2022
68402BAC011,033 10,680 353 10,680 10,680 9/30/2022
3136B3H524,430 2,687 1,743 2,687 2,687 9/30/2022
225458X452,278 1,901 377 1,901 1,901 9/30/2022
3136B1DK72,429 1,642 787 1,642 1,642 9/30/2022
59025CAD21,291 1,051 241 1,051 1,051 9/30/2022
3137BW5X81,351 802 549 802 802 9/30/2022
3137B5SC81,320 787 533 787 787 9/30/2022
3136ANWU71,322 773 549 773 773 9/30/2022
30247DAE1619 559 60 559 559 9/30/2022
31394FJ30893 456 437 456 456 9/30/2022
3136AQWF3606 366 240 366 366 9/30/2022
31397N3G8612 355 257 355 355 9/30/2022
31396Q5E5568 350 218 350 350 9/30/2022
31396VKN7525 346 179 346 346 9/30/2022
31396NLG9504 343 160 343 343 9/30/2022
31396LLW8614 339 276 339 339 9/30/2022
31396LMF4572 336 236 336 336 9/30/2022
31394ETM0623 326 297 326 326 9/30/2022
3128HUCK5503 310 193 310 310 9/30/2022
31398PVV8577 273 304 273 273 9/30/2022
31398GYX1539 255 284 255 255 9/30/2022
31396RQA8471 247 224 247 247 9/30/2022
31398SY98563 244 318 244 244 9/30/2022
31397T3F7578 244 334 244 244 9/30/2022
31393X5Y9440 226 214 226 226 9/30/2022
3136A6PZ1474 225 249 225 225 9/30/2022
31397UN62443 222 222 222 222 9/30/2022
38376JV35421 208 212 208 208 9/30/2022
92917BAC8325 205 120 205 205 9/30/2022
31396LRB8340 202 137 202 202 9/30/2022
38378P8Y7402 191 211 191 191 9/30/2022
32

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


CUSIPBook/Adjusted Carrying Value Amortized Cost Before Current Period OTTIPresent Value of Projected Cash FlowsRecognized Other-Than-Temporary ImpairmentAmortized Cost After Other-Than-Temporary ImpairmentFair Value at Time of OTTIDate of Financial Statement Where Reported
(In Thousands)
38377WG65417 184 233 184 184 9/30/2022
31396VN46368 184 184 184 184 9/30/2022
31398KCB4382 181 201 181 181 9/30/2022
38377TQ53462 172 289 172 172 9/30/2022
3137BBPE4379 162 217 162 162 9/30/2022
38377LL48337 162 175 162 162 9/30/2022
38375KJJ2310 156 154 156 156 9/30/2022
31282YNS4277 156 121 156 156 9/30/2022
31397R4G8338 155 183 155 155 9/30/2022
31397YW72302 148 154 148 148 9/30/2022
38374EP35270 145 125 145 145 9/30/2022
31397USA8341 141 201 141 141 9/30/2022
3136ANMD6333 140 193 140 140 9/30/2022
3136ALLV1306 140 166 140 140 9/30/2022
31397AZX4230 134 96 134 134 9/30/2022
31282YNU9243 131 112 131 131 9/30/2022
3128HUBP5217 126 91 126 126 9/30/2022
31395NLC9246 121 125 121 121 9/30/2022
31397YZ20250 116 134 116 116 9/30/2022
31397GRK8237 114 124 114 114 9/30/2022
31396RKW6217 111 106 111 111 9/30/2022
31397KF89219 107 112 107 107 9/30/2022
3136A4CD9232 97 136 97 97 9/30/2022
31396H2E8167 91 76 91 91 9/30/2022
31398QRT6210 90 120 90 90 9/30/2022
38374KKX0177 86 92 86 86 9/30/2022
31397UGY9185 85 100 85 85 9/30/2022
31396PZF1179 85 94 85 85 9/30/2022
38377WGK4161 63 98 63 63 9/30/2022
3137ALWU9228 63 165 63 63 9/30/2022
31397YSN2133 62 71 62 62 9/30/2022
31396LD5697 55 42 55 55 9/30/2022
31282YYA187 47 41 47 47 9/30/2022
31396HH5188 45 43 45 45 9/30/2022
3128HUA8487 45 42 45 45 9/30/2022
3128HUA5073 35 37 35 35 9/30/2022
31398VLL878 33 45 33 33 9/30/2022
31395BGL175 31 44 31 31 9/30/2022
31392HZL041 25 17 25 25 9/30/2022
38375LUL267 24 43 24 24 9/30/2022
3136AGCZ358 21 37 21 21 9/30/2022
31396L3N844 21 23 21 21 9/30/2022
3137AQSS850 19 31 19 19 9/30/2022
31398SF4040 19 22 19 19 9/30/2022
38378UB8944 18 26 18 18 9/30/2022
38378P7C644 15 28 15 15 9/30/2022
38374VUT422 15 7 15 15 9/30/2022
38374M7D524 13 12 13 13 9/30/2022
31397P4L123 10 12 10 10 9/30/2022
31392CRB216 9 7 9 9 9/30/2022
33

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


CUSIPBook/Adjusted Carrying Value Amortized Cost Before Current Period OTTIPresent Value of Projected Cash FlowsRecognized Other-Than-Temporary ImpairmentAmortized Cost After Other-Than-Temporary ImpairmentFair Value at Time of OTTIDate of Financial Statement Where Reported
(In Thousands)
38375PYP019 8 10 8 8 9/30/2022
31396LT3414 7 7 7 7 9/30/2022
38377F2Z314 6 8 6 6 9/30/2022
31396QCH07 6 1 6 6 9/30/2022
31397MQ7518 4 14 4 4 9/30/2022
38378EPB310 3 8 3 3 9/30/2022
312913JL1— — — — — 9/30/2022
3136A1LJ21,181 850 331 850 850 6/30/2022
3136ANRY5966 545 421 545 545 6/30/2022
3136ARMA3777 504 273 504 504 6/30/2022
3136AU4G3998 641 357 641 641 6/30/2022
3136B2CG5837 545 292 545 545 6/30/2022
3137BGFU81,310 903 408 903 903 6/30/2022
31396JPN9827 547 280 547 547 6/30/2022
31396K5P31,048 778 270 778 778 6/30/2022
31396VKN7824 551 273 551 551 6/30/2022
38377XDM1669 388 281 388 388 6/30/2022
38379BGA0779 479 300 479 479 6/30/2022
3136AAYK51,367 1,076 292 1,076 1,076 3/31/2022
3136ANWU72,079 1,521 558 1,521 1,521 3/31/2022
3136AQWF3964 685 279 685 685 3/31/2022
3136ATFX73,674 2,474 1,200 2,474 2,474 3/31/2022
3136AXYA75,397 3,754 1,643 3,754 3,754 3/31/2022
3136B1DK73,519 2,760 759 2,760 2,760 3/31/2022
3136B3H527,554 5,002 2,552 5,002 5,002 3/31/2022
3136B5TC91,182 840 342 840 840 3/31/2022
3137AMQL42,305 1,540 765 1,540 1,540 3/31/2022
3137ARKM71,307 929 378 929 929 3/31/2022
3137B5SC82,007 1,542 465 1,542 1,542 3/31/2022
3137B6V57938 617 320 617 617 3/31/2022
3137BSHH91,469 1,053 416 1,053 1,053 3/31/2022
3137BW5X82,524 1,543 981 1,543 1,543 3/31/2022
3137BXSJ21,514 1,065 450 1,065 1,065 3/31/2022
3137BYPE45,640 4,319 1,321 4,319 4,319 3/31/2022
3137FBX846,033 4,618 1,416 4,618 4,618 3/31/2022
31394ETM0966 711 255 711 711 3/31/2022
31396NLG9855 571 284 571 571 3/31/2022
31398NL28888 602 286 602 602 3/31/2022
38377QGM31,876 1,095 781 1,095 1,095 3/31/2022
38379DCX0650 379 271 379 379 3/31/2022
38379WFS61,003 638 366 638 638 3/31/2022
Total$50,101 
Securities with no amount disclosed represents an OTTI of less than $1.
The total amount of OTTI's recognized by the Company arising from the present value of expected cash flows being less than the amortized cost of structured securities subject to SSAP No. 43R was $50.1, $6.4 and $2.2 in 2022, 2021 and 2020, respectively.
34

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


The following table discloses, in the aggregate, all structured securities in an unrealized loss position for which an OTTI has not been recognized in accordance with the requirements of SSAP No. 43R. This includes securities with a recognized OTTI for non-interest related declines when a non-recognized interest related impairment remains:
December 31, 2022
Aggregate Amount of Unrealized LossesAggregate Fair Value of Securities with Unrealized Losses
(In Thousands)
Less than 12 months$410,808 $2,366,601 
Greater than 12 months689,392 2,462,116 
Total$1,100,200 $4,828,717 

December 31, 2021
Aggregate Amount of Unrealized LossesAggregate Fair Value of Securities with Unrealized Losses
(In Thousands)
Less than 12 months$74,558 $3,336,254 
Greater than 12 months4,630 159,196 
Total$79,188 $3,495,450 
Impairments on joint venture, partnerships and limited liability company holdings are taken when the market value is less than 90% of book value, and it is determined that the decline below book value is not recoverable. The fair value of these investments is based upon the Company's overall proportional ownership interest in the underlying partnership. The investment and the amount of the impairments for the years ended December 31, 2022, 2021 and 2020 are as follows:
DescriptionAmount of Impairment
202220212020
(In Thousands)
BLACKSTONE EQ MANAGED ACCT PORT LP$— $— $58 
BLACKSTONE MARKET OPPORTUNITIES FU PRVT— — 35 
EAST LODGE EUROPEAN ABS FUND— — 661 
EIG ENERGY FUND XIV LP— — 933 
ENERGY CAPITAL PARTNERS, LP PRVT— — 40 
SHELTER GROWTH OPPOR FUND LTD— — 2,561 
Total$— $— $4,288 

35

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


Net Investment Income
Major categories of net investment income are summarized as follows:
Year ended December 31
202220212020
(In Thousands)
Gross investment income:
Equity securities$5,692 $3,330 $3,050 
Bonds929,774 764,574 449,847 
Mortgage loans100,392 96,917 61,082 
Derivatives41,564 144,694 9,903 
Contract loans74,320 66,543 50,107 
Other invested assets106,979 122,917 65,039 
Other3,290 578 1,937 
Total gross investment income1,262,011 1,199,553 640,965 
Investment expenses(70,027)(95,131)(58,919)
Net investment income$1,191,984 $1,104,422 $582,046 
Federal Home Loan Bank Agreements
The Company is a member of the FHLB of Topeka. Through its membership, the Company has conducted business (issued funding agreements) with the FHLB. It is part of the Company's strategy to utilize these funds for spread lending purposes. Reserves for these funds appear on the statement of admitted assets, liabilities, and capital and surplus under deposit type contracts. The Company has determined the estimated maximum borrowing capacity as $12,600.0 at December 31, 2022. The Company has the ability to obtain funding from the FHLB based on a percentage of the value of its assets and subject to the availability of eligible collateral. The limit across all programs is potentially up to 40% of the general account total net admitted assets, excluding Separate Accounts, of the Company, one quarter in arrears, based on credit approval from FHLB of Topeka.
The amount of FHLB capital stock held by the Company is as follows:
20222021
General AccountSeparate AccountTotalGeneral AccountSeparate AccountTotal
(In Thousands)
Membership stock - Class A$500 $— $500 $500 $— $500 
Activity stock73,750 — 73,750 64,525 — 64,525 
Excess stock1,636 — 1,636 1,066 — 1,066 
Aggregate total$75,886 $— $75,886 $66,091 $— $66,091 
36

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


All FHLB membership stock is not eligible for redemption.

The amount of collateral pledged to FHLB at the end of the reporting period, and the maximum amount that was pledged to FHLB during the reporting period is as follows:
Amount Pledged at End of Reporting PeriodMaximum Amount Pledged During Reporting Period
Fair ValueCarrying ValueAggregate Total BorrowingFair ValueCarrying ValueAggregate Total Borrowing
(In Thousands)
As of December 31, 2022
General account$2,124,298 $2,834,631 $1,650,000 $2,175,676 $2,837,873 $1,650,000 
Separate account— — — — — — 
Total$2,124,298 $2,834,631 $1,650,000 $2,175,676 $2,837,873 $1,650,000 
As of December 31, 2021
General account$2,248,695 $2,033,918 $1,445,000 $2,273,726 $2,036,819 $1,295,000 
Separate account— — — — — — 
Total$2,248,695 $2,033,918 $1,445,000 $2,273,726 $2,036,819 $1,295,000 
The amount borrowed from the FHLB at the the end of the reporting period is as follows:
General AccountSeparate AccountTotalFunding Agreements Reserves Established
(In Thousands)
As of December 31, 2022
Debt$— $— $— XXX
Funding agreements1,650,000 — 1,650,000 $1,645,651 
Other— — — XXX
Aggregate total$1,650,000 $— $1,650,000 $1,645,651 
As of December 31, 2021
Debt$— $— $— XXX
Funding agreements1,445,000 — 1,445,000 $1,369,682 
Other— — — XXX
Aggregate total$1,445,000 $— $1,445,000 $1,369,682 
The maximum amount the general account borrowed from FHLB during the current reporting period was $1,650.0.
As of December 31, 2022, the Company's FHLB borrowings are subject to prepayment penalties.
37

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


Restricted Assets
The following table shows assets pledged as collateral or restricted at December 31, 2022:
Gross (Admitted & Nonadmitted) Restricted
General AccountTotal AssetsTotal From Prior YearIncrease/(Decrease)Total
Nonadmitted
Restricted		Total
Admitted Restricted		Gross (Admitted &
Nonadmitted)
Restricted to
Total Assets 		Admitted Restricted to Total Admitted Assets
Restricted Asset CategoryTotal AssetsSupporting Separate Account Activity*
(In Thousands)
FHLB capital stock75,886 — 75,886 66,091 9,795 — 75,886 0.2 %0.2 %
On deposit with states27,081 — 27,081 27,027 54 — 27,081 0.1 %0.1 %
Pledged as collateral to FHLB (including assets backing funding agreements)2,834,631 — 2,834,631 2,033,918 800,713 — 2,834,631 8.6 %8.6 %
Derivative pledged collateral18,593 — 18,593 3,733 14,860 — 18,593 0.1 %0.1 %
Total restricted assets$2,956,191 $— $2,956,191 $2,130,769 $825,422 $— $2,956,191 9.0 %9.0 %
* Subset of Total General Account Gross Restricted Assets
The following table shows assets pledged as collateral or restricted at December 31, 2021:
Gross (Admitted & Nonadmitted) Restricted
General AccountTotal AssetsTotal From Prior YearIncrease/(Decrease)Total
Nonadmitted
Restricted		Total
Admitted Restricted		Gross (Admitted &
Nonadmitted)
Restricted to
Total Assets 		Admitted Restricted to Total Admitted Assets
Restricted Asset CategoryTotal AssetsSupporting Separate Account Activity*
(In Thousands)
FHLB capital stock$66,091 $— $66,091 $46,094 $19,997 $— $66,091 0.2 %0.2 %
On deposit with states27,027 — 27,027 26,941 86 — 27,027 0.1 %0.1 %
Pledged as collateral to FHLB (including assets backing funding agreements)2,033,918 — 2,033,918 983,486 1,050,432 2,033,918 5.8 %5.9 %
Derivative pledged collateral3,733 — 3,733 1,778 1,955 — 3,733 0.0 %0.0 %
Total restricted assets$2,130,769 $— $2,130,769 $1,058,299 $1,072,470 $— $2,130,769 6.1 %6.2 %
* Subset of Total General Account Gross Restricted Assets
38

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


The following table shows collateral received and reflected as assets at December 31, 2022:
Collateral AssetsBook/Adjusted Carrying Value (BACV)Fair Value% of BACV to Total Assets (Admitted and Nonadmitted)*% of BACV to Total Admitted Assets**
(In Thousands)
General Account
Cash, Cash Equivalents and Short-Term Investments$189,572 $189,572 0.60 %0.60 %
Total collateral Assets$189,572 $189,572 0.60 %0.60 %
*BACV divided by total assets excluding Separate Accounts
The Company has not received collateral reflected as assets in the separate account.
Amount% of Liability to Total Liabilities
(In Thousands)
Recognized Obligation to Return Collateral Asset (General Account)*$189,572 0.63 %
*BACV divided by total liabilities excluding Separate Accounts
The following table shows collateral received and reflected as assets at December 31, 2021:
Collateral AssetsBook/Adjusted Carrying Value (BACV)Fair Value% of BACV to Total Assets (Admitted and Nonadmitted)*% of BACV to Total Admitted Assets**
(In Thousands)
General Account
Cash, Cash Equivalents and Short-Term Investments$366,847 $366,847 1.05 %1.05 %
Long term bonds owned110,017 110,017 0.31 0.31 
Total collateral Assets$476,864 $476,864 1.36 %1.36 %
*BACV divided by total assets excluding Separate Accounts
**BACV divided by total admitted assets excluding Separate Accounts
The Company has not received collateral reflected as assets in the separate account.
Amount% of Liability to Total Liabilities
(In Thousands)
Recognized Obligation to Return Collateral Asset (General Account)*$476,864 1.51 %
*BACV divided by total liabilities excluding Separate Accounts

Troubled Debt Restructuring
The Company has a high quality, well performing, portfolio of commercial mortgage loans and private placement debts. Under certain circumstances, modifications to these contracts are granted. Each modification is evaluated as to whether troubled debt restructuring has occurred. A modification is a troubled debt restructure when the borrower is in financial difficulty and the creditor makes concessions. Generally, the types of concessions may
39

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


include: reduction of the face amount or maturity amount of the debt as originally stated, reduction of the contractual interest rate, extension of the maturity date at an interest rate lower than current market interest rates and/or reduction of accrued interest. The Company considers the amount, timing and extent of the concession granted in determining any impairment or changes in the specific valuation allowance recorded in connection with the troubled debt restructuring. A valuation allowance may have been recorded prior to the quarter when the loan is modified in a troubled debt restructuring. Accordingly, the carrying value (net of the specific valuation allowance) before and after modification through a troubled debt restructuring may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment.
As of December 31, 2022 and 2021, the Company held 3 and 5 private placement troubled debt restructuring loans with a carrying value of $15.4 and $25.0, respectively.
For the years ended December 31, 2022 and 2021, the Company’s total recorded investment in restructured debt was $15.4 and $25.0, respectively. The Company realized losses related to these investments of $0.0, $0.0, and $0.0 during 2022, 2021, and 2020, respectively.
The Company has no contractual commitments to extend credit to debtors owing receivables whose terms have been modified in troubled debt restructurings.
The Company accrues interest income on impaired loans to the extent it is deemed collectible (delinquent less than 90 days) and the loan continues to perform under its original or restructured contractual terms. Interest income on non-performing loans is generally recognized on a cash basis.
3.    Derivative Financial Instruments Held for Purposes Other than Trading
The Company’s use of derivatives is primarily for economic hedging purposes to reduce the Company’s exposure to cash flow variability of assets and liabilities, interest rate risk, credit risk, foreign exchange, and market risk. The Company enters into the following type of derivatives: Credit Contracts, Equity Contracts, Foreign Exchange Contracts and Interest Rate Contracts. The Company's use and hedging strategy of derivatives is detailed in Note 1.
Upfront fees paid or received on derivative contracts are included on the statements of admitted assets and are being amortized to investment income over the remaining terms of the contracts.
Periodic payments from such contracts are included in investment income on the statements of operations. Accrued amounts payable to or receivable from counterparties are included in other liabilities or accrued investment income on the statements of admitted assets, liabilities and capital and surplus. Gains or losses realized as a result of early terminations are
40

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


recognized in income in the statement of operations or deferred into IMR and amortized to investment income.
Derivatives that are designated as being in an effective hedging relationship are reported in a manner that is consistent with the hedged asset or liability. Derivative contracts that are matched or otherwise designated to be associated with other financial instruments (replication transactions) are recorded at fair value if the related financial instruments mature, are sold, or are otherwise terminated or if the interest rate contracts cease to be effective hedges. Changes in the fair value of derivatives not designated in effective hedging relationships are recorded as unrealized gains and losses in surplus.
The Company is exposed to credit loss in the event of nonperformance by counterparties on certain derivative contracts; however, the Company does not anticipate nonperformance by any of these counterparties. The amount of such exposure is generally the unrealized gains in such contracts. The Company manages the potential credit exposure from interest rate contracts through careful evaluation of the counterparties’ credit standing, collateral agreements, and master netting agreements.
Under the terms of the Company’s Over-The-Counter ("OTC") Derivative International Swaps and Derivatives Association, Inc. ("ISDA") agreements, the Company may receive from, or deliver to, counterparties, collateral to assure that all terms of the ISDA agreements will be met with regard to the Credit Support Annex ("CSA"). The terms of the CSA call for the Company to pay interest on any cash received equal to the Federal Funds rate. Collateral held is used in accordance with the CSA to satisfy any obligations. Investment grade bonds owned by the Company are the source of noncash collateral posted, which is reported on the balance sheet.
The table below summarizes the Company's types and amounts of collateral held, pledged and delivered related to OTC derivative contracts and cleared derivative contracts:
As of December 31, 2022As of December 31, 2021
Collateral Type:(In Thousands)
Cash
Held- OTC Contracts$189,572 $476,864 
Held- Cleared Contracts— — 
Pledged- Cleared Contracts— 1,930 
Securities
Held$— $— 
Delivered18,593 1,803 
41

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


The table below summarizes the Company’s derivative contracts at December 31, 2022 and 2021:
Notional AmountCarrying ValueFair Value
(In Thousands)
December 31, 2022
Derivative contracts:
Credit contracts$148,500 $2,297 $3,302 
Equity contracts2,606,232 190,864 190,836 
Foreign exchange contracts88,194 4,458 11,492 
Interest rate contracts55,540 1,288 (9,409)
Total return swaps74,000 920 920 
Total derivative contracts$2,972,466 $199,827 $197,141 
December 31, 2021
Derivative contracts:
Equity contracts$2,424,056 $478,667 $478,768 
Foreign exchange contracts51,667 177 3,315 
Interest rate contracts58,666 (230)(7,841)
Total return swaps94,000 (806)(806)
Total derivative contracts$2,628,389 $477,808 $473,436 
The Company does not have any derivative contracts with financing premiums.
4.    Concentrations of Credit Risk
The Company held below investment grade corporate bonds with an aggregate book value of $865.2 and $738.5 and an aggregate fair value of $751.8 and $780.0 at December 31, 2022 and 2021, respectively. Those holdings amounted to 3.5% and 2.9% of the Company’s investments in bonds and 2.6% and 2.3% of total admitted assets at December 31, 2022 and 2021, respectively. The holdings of below investment grade bonds are widely diversified and of satisfactory quality based on the Company’s investment policies and credit standards.

The Company held unrated bonds with a carrying value of $123.3 and $282.1 with an aggregate fair value of $123.3 and $286.5 at December 31, 2022 and 2021, respectively. The carrying value of these holdings amounted to 0.5% and 1.1% of the Company’s investment in bonds and 0.4% and 0.9% of the Company’s total admitted assets at December 31, 2022 and 2021, respectively.

The Company's commercial mortgage loan portfolio is diversified by geographic region and property type to manage concentration risk. The Company manages risk when originating commercial mortgage loans by generally lending only up to 75% of the estimated fair value of the underlying real estate. Subsequently, the Company continuously evaluates all mortgage loans based on relevant current information including a review of loan-specific credit, property characteristics and market trends. Loan performance is continuously
42

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


monitored on a loan-specific basis throughout the year. This review includes submitted appraisals, operating statements, rent revenues and annual inspection reports, among other items. This review evaluates whether the properties are performing at a consistent and acceptable level to secure the debt. The components to evaluate debt service coverage are received and reviewed at least annually to determine the level of risk.
The Company rates all commercial mortgages to quantify the level of risk. The Company places those loans with higher risk on a watch list and closely monitors these loans for collateral deficiency or other credit events that may lead to a potential loss of principal and/or interest.
Loan-to-value ("LTV") and debt service coverage ("DSC") ratios are measures commonly used to assess the risk and quality of commercial mortgage loans. The LTV ratio is expressed as a percentage of the amount of the loan relative to the value of the underlying property. An LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the value of the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property's net income (loss) to its debt service payments. A DSC ratio of less than 1.0 indicates that property's operations do not generate sufficient income to cover debt payments. These ratios are utilized as part of the review process described above. LTV and DSC ratios as of the dates indicated are presented below:
20222021
Carrying Value%Carrying Value%
(In Thousands)(In Thousands)
Loan-to-Value
0% - 50%$2,262,164 86.0 %$2,194,128 89.5 %
50% - 60%344,698 13.1 %193,381 7.9 %
60% - 70%24,846 0.9 %38,789 1.6 %
70% - 80%— — %26,320 1.1 %
Total$2,631,708 100.0 %$2,452,617 100.0 %
Debt Service Coverage Ratio
Greater than 1.5x$1,943,079 73.8 %$2,049,127 83.5 %
1.25x to 1.5x254,717 9.7 %313,696 12.8 %
1.0x to 1.25x137,329 5.2 %63,106 2.6 %
Less than 1.0x296,583 11.3 %26,689 1.1 %
Total$2,631,708 100.0 %$2,452,617 100.0 %
If the value of any mortgage loan is determined to be impaired (i.e., when it is probable that the Company will be unable to collect on all amounts due according to the contractual terms of the loan agreement), the carrying value of the mortgage loan is reduced to either the present value of expected cash flows from the loan, discounted at the loan’s effective interest rate, or fair value of the collateral.
43

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


The following table shows the Company's mortgage loan portfolio diversification by property type:
As of December 31, 2022As of December 31, 2021
Property TypeCarrying Value%Carrying Value%
(In Thousands)(In Thousands)
Apartments$944,800 35.9 %$827,669 33.7 %
Hotel/Motel64,581 2.5 %84,112 3.4 %
Industrial354,503 13.5 %232,527 9.5 %
Mixed Use9,165 0.3 %4,849 0.2 %
Office321,758 12.2 %344,277 14.0 %
Other323,225 12.3 %282,853 11.5 %
Retail613,676 23.3 %676,330 27.6 %
Total$2,631,708 100.0 %$2,452,617 100.0 %
The following table shows the Company's mortgage loan portfolio diversification by region:
As of December 31, 2022As of December 31, 2021
RegionCarrying Value%Carrying Value%
(In Thousands)(In Thousands)
Pacific$729,773 27.6 %$664,266 27.0 %
South Atlantic546,816 20.8 %471,290 19.2 %
West South Central238,795 9.1 %212,588 8.7 %
East North Central280,208 10.6 %266,256 10.9 %
Middle Atlantic368,681 14.0 %371,590 15.2 %
Mountain306,515 11.7 %293,146 12.0 %
West North Central80,995 3.1 %86,401 3.5 %
New England44,130 1.7 %50,443 2.1 %
East South Central35,795 1.4 %36,636 1.5 %
Total$2,631,708 100.0 %$2,452,617 100.0 %
The following table shows the carrying value of the Company's mortgage loan portfolio breakdown by year of origination:
Year of Origination20222021
(In Thousands)
2022$501,541 $— 
2021236,095 234,439 
202060,161 74,399 
2019121,822 179,786 
2018270,688 286,007 
2017233,373 255,399 
2016 and prior1,208,028 1,422,587 
Total$2,631,708 $2,452,617 
44

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


5.    Reserves
At December 31, 2022 and 2021, the Company’s annuity reserves, including those held in separate accounts and deposit fund liabilities that are subject to discretionary withdrawal (with adjustment), subject to discretionary withdrawal (without adjustment), and not subject to discretionary withdrawal provisions are summarized as follows:
General AccountSeparate Account Non-GuaranteedTotal% of Total
(In thousands)
December 31, 2022
Individual Annuities:
Subject to discretionary withdrawal:
With market value adjustment$254,749 $— $254,749 14.5 %
At book value less current surrender charge of 5% or more2,064 — 2,064 0.1 
At fair value— 10,977 10,977 0.6 
Total with market value adjustment or at fair value256,813 10,977 267,790 15.2 
Subject to discretionary withdrawal (without adjustment):
At book value without adjustment (minimal or no charge or adjustment)882,060 — 882,060 50.0 
Not subject to discretionary withdrawal612,643 — 612,643 34.8 
Total gross individual annuities reserves1,751,516 10,977 1,762,493 100.0 %
Less reinsurance ceded1,625 — 1,625 
Total net individual annuities reserves$1,749,891 $10,977 $1,760,868 
Amount at book value with surrender charge in the current year that will move to at book value without adjustment for the first time within the year after the statement date$165 $— $165 
Group Annuities:
Subject to discretionary withdrawal:
With market value adjustment$4,700 $— $4,700 0.4 %
Total with market value adjustment or at fair value4,700 — 4,700 0.4 
Subject to discretionary withdrawal (without adjustment):
At book value without adjustment (minimal or no charge or adjustment)1,748 — 1,748 0.1 
Not subject to discretionary withdrawal1,327,325 — 1,327,325 99.5 
Total gross group annuities reserves1,333,773 — 1,333,773 100.0 %
Less reinsurance ceded— — — 
Total net gross annuities reserves$1,333,773 $— $1,333,773 
Amount at book value with surrender charge in the current year that will move to at book value without adjustment for the first time within the year after the statement date$— $— $— 
Deposit Type Contracts (no life contingencies):
Subject to discretionary withdrawal (without adjustment):
At book value without adjustment (minimal or no charge or adjustment)$303,595 $— $303,595 13.7 %
Not subject to discretionary withdrawal1,907,965 — 1,907,965 86.3 
Total gross deposit type contracts reserves2,211,560 — 2,211,560 100.0 %
Less reinsurance ceded761 — 761 
Total net deposit type contracts reserves$2,210,799 $— $2,210,799 
Amount at book value with surrender charge in the current year that will move to at book value without adjustment for the first time within the year after the statement date$— $— $— 
45

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


General AccountSeparate Account Non-GuaranteedTotalPercent of Total
December 31, 2021(In Thousands)
Individual Annuities:
Subject to discretionary withdrawal:
With market value adjustment$320,640 $— $320,640 16.0 %
At book value less current surrender charge of 5% or more3,859 — 3,859 0.2 
At fair value— 12,741 12,741 0.6 
Total with market value adjustment or at fair value 324,499 12,741 337,240 16.8 
At book value without adjustment (minimal or no charge or adjustment)1,026,534 — 1,026,534 51.1 
Not subject to discretionary withdrawal646,393 — 646,393 32.2 
Total gross individual annuities reserves1,997,426 12,741 2,010,167 100.0 %
Less reinsurance ceded1,545 — 1,545 
Total net individual annuities reserves$1,995,881 $12,741 $2,008,622 
 Amount at book value with surrender charge in the current year that will move to at book value without adjustment in the year after the statement date$— $— $— 
Group Annuities:
Subject to discretionary withdrawal:
With market value adjustment$5,154 $— $5,154 0.4 %
Total with market value adjustment or at fair value 5,154 — 5,154 0.4 
At book value without adjustment (minimal or no charge or adjustment)2,194 — 2,194 0.2 %
Not subject to discretionary withdrawal1,417,641 — 1,417,641 99.5 %
Total gross group annuities reserves1,424,989 — 1,424,989 100.0 %
Less reinsurance ceded77 — 77 
Total net group annuities reserves$1,424,912 $— $1,424,912 
 Amount at book value with surrender charge in the current year that will move to at book value without adjustment in the year after the statement date$— $— $— 
Deposit Type-Contracts (no life contingencies):
Subject to discretionary withdrawal (without adjustment):
At book value without adjustment (minimal or no charge or adjustment)175,512 $— $175,512 9.7 %
Not subject to discretionary withdrawal1,638,393 — 1,638,393 90.3 %
Total gross deposit type contracts reserves1,813,905 — 1,813,905 100.0 %
Less reinsurance ceded761 — 761 
Total net deposit fund liabilities reserves$1,813,144 $— $1,813,144 
Amount with current surrender charge of 5% or more in the current year that will have less than a 5% surrender charge in the year subsequent to the balance sheet year$— $— $— 
The reconciliation of total annuity reserves and deposit-type contract fund liabilities at December 31, 2022 and 2021, is as follows:
December 31
20222021
(In Thousands)
Life & Accident & Health Annual Statement:
Exhibit 5, Annuities Section, Total (net)$2,943,984 $3,169,869 
Exhibit 5, Supplemental Contracts with Life Contingencies Section, Total (net)139,680 141,389 
Exhibit 7, Deposit - Type Contracts, line 14, column 12,210,800 1,922,678 
Total Life & Accident & Health Annual Statement5,294,464 5,233,936 
Separate Accounts Annual Statement:
Exhibit 3, Annuities Section, Total (net)10,977 12,741 
Total Separate Accounts Annual Statement10,977 12,741 
Combined Total$5,305,441 $5,246,677 
46

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


At December 31, 2022 and 2021, the Company’s life insurance reserves, including those held in separate accounts that are subject to discretionary withdrawal and not subject to discretionary withdrawal provisions are summarized as follows:
Account ValueCash ValueReserve
(In Thousands)
December 31, 2022
General Account:
Subject to discretionary withdrawal, surrender values, or policy loans:
Term policies with cash value$— $204,823 $743,968 
Universal life8,664,668 8,547,244 8,411,585 
Universal life with secondary guarantees2,440,651 2,285,794 7,094,784 
Indexed universal life2,393,701 2,248,802 2,158,798 
Indexed universal life with secondary guarantees167,470 126,407 335,525 
Other permanent cash value life Insurance1,902,237 2,947,380 2,430,696 
Variable life5,846 5,846 5,830 
Variable universal life1,028,542 1,032,824 1,001,487 
Miscellaneous reserves— — 138 
Not subject to discretionary withdrawal or no cash values:
Term policies without cash valueXXXXXX7,000,622 
Accidental death benefitsXXXXXX1,467 
Disability - active livesXXXXXX33,278 
Disability - disabled livesXXXXXX87,034 
Miscellaneous reservesXXXXXX2,341,535 
Total gross life insurance reserves16,603,115 17,399,120 31,646,747 
Less reinsurance ceded3,168,484 3,358,435 16,699,347 
Total net life insurance reserves$13,434,631 $14,040,685 $14,947,400 
Separate Account with Nonguaranteed
Subject to discretionary withdrawal, surrender values, or policy loans:
Variable Universal life$1,357,026 $1,313,907 $1,355,731 
Not subject to discretionary withdrawal
Total gross life insurance reserves1,357,026 1,313,907 1,355,731 
Total net separate account with nonguaranteed life insurance reserves$1,357,026 $1,313,907 $1,355,731 
47

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


Account ValueCash ValueReserve
(In Thousands)
December 31, 2021
General Account:
Subject to discretionary withdrawal, surrender values, or policy loans:
Term policies with cash value$— $178,974 $689,648 
Universal life8,853,848 8,728,776 8,576,174 
Universal life with secondary guarantees2,546,993 2,356,606 7,026,827 
Indexed universal life2,194,458 2,026,689 2,161,201 
Indexed universal life with secondary guarantees152,638 108,255 297,107 
Other permanent cash value life Insurance1,963,986 3,021,641 2,522,774 
Variable life4,502 4,502 4,483 
Variable universal life991,126 995,840 944,224 
Miscellaneous reserves— — 138 
Not subject to discretionary withdrawal or no cash values:
Term policies without cash valueXXXXXX7,521,017 
Accidental death benefitsXXXXXX1,558 
Disability - active livesXXXXXX39,286 
Disability - disabled livesXXXXXX90,231 
Miscellaneous reservesXXXXXX2,573,326 
Total gross life insurance reserves16,707,551 17,421,283 32,447,994 
Less reinsurance ceded3,245,511 3,376,846 17,142,991 
Total net life insurance reserves$13,462,040 $14,044,437 $15,305,003 
Separate Account with Nonguaranteed
Subject to discretionary withdrawal, surrender values, or policy loans:
Variable universal life$1,774,421 $1,705,675 $1,771,119 
Total gross life insurance reserves1,774,421 1,705,675 1,771,119 
Less reinsurance ceded— — — 
Total net separate account with nonguaranteed life insurance reserves$1,774,421 $1,705,675 $1,771,119 
The reconciliation of total life insurance reserves at December 31, 2022 and 2021, is as follows:
December 31
20222021
(In Thousands)
Life & Accident & Health Annual Statement:
Exhibit 5, Life Insurance Section, Total (net)$13,362,532 $13,551,703 
Exhibit 5, Accidental Death Benefits Section, Total (net)589 616 
Exhibit 5, Disability – Active Lives Section, Total (net)5,880 6,352 
Exhibit 5, Disability – Disabled Lives Section, Total (net)62,458 67,118 
Exhibit 5, Miscellaneous Reserves Section, Total (net)1,515,942 1,679,213 
Total Life & Accident & Health Annual Statement14,947,401 15,305,002 
Separate Accounts Annual Statement:
Exhibit 3, Life Insurance Section, Total (net)1,355,731 1,771,119 
Total Separate Accounts Annual Statement1,355,731 1,771,119 
Combined Total$16,303,132 $17,076,121 
48

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


Deferred and uncollected life insurance premiums and annuity considerations as of December 31, 2022 and 2021 are as follows:
20222021
GrossNet of LoadingGrossNet of Loading
(In Thousands)
Ordinary renewal571 (6,305)86,286 79,545 
Group life(11)(17)(26)(30)
Group annuity(106)(106)13 13 
Total$454 $(6,428)$86,273 $79,528 
6.    Employee Benefit Plans
Defined Benefit Plan: Prior to the Individual Life Transaction, the Company sponsored a non-contributory supplemental retirement non-qualified plan covering U.S. employees. The obligation was released as part of the Individual Life Transaction. As of December 31, 2022, the Company did not have any further obligations to the plan.
Defined Contribution Plans: Subsequent to the Individual Life Transaction, Resolution Life Services (US), Inc. sponsors the Resolution Life US 401(k) Plan (the “Plan”). Substantially all employees of Resolution Life US and its subsidiaries and affiliates (excluding certain employees) are eligible to participate, other than Company agents. The Plan is a tax qualified defined contribution plan. Plan benefits are not guaranteed by the Pension Benefit Guaranty Corporation (“PBGC”). The Plan allows eligible participants to defer into the Plan a specified percentage of eligible compensation on a pretax basis. Resolution Life US matches such pretax contributions, up to a maximum of 6% of eligible compensation. All matching contributions are automatically vested, regardless of service history. All contributions made to the Plan are subject to certain limits imposed by applicable law. Expenses allocated to the Company were $3.2 and $2.3 for 2022 and 2021, respectively. Prior to the Individual Life Transaction the Company was a party to a prior contribution plan with the Company's prior parent. Expenses allocated to the Company under the prior plan were $0.7 for 2020.
Consolidated/Holding Company Plans: Subsequent to the Individual Life Transaction Resolution Life Services (US) Inc., an affiliate, offers long term incentives to its eligible employees and certain other individuals who meet the eligibility criteria. Expenses allocated to the Company were $2.7 and $4.7 for 2022 and 2021, respectively. Prior to the Individual Life Transaction the Company was a party to a prior plan with the Company's prior parent. Expenses allocated to the Company under the prior plan were $0.2 for 2020.
49

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


A summary of assets, obligations and assumptions of the non-qualified defined benefit and other postretirement benefit plans are as follows:
OverfundedUnderfunded
2022202120222021
(In Thousands)
Pension Benefits
Benefit obligation at beginning of year$— $— $— $18,624 
Business combinations, divestitures, curtailments, settlements and special termination benefits— — — (18,624)
Benefit obligation at end of year$— $— $— $— 
Postretirement Benefits
Benefit obligation at beginning of year$— $— $— $205 
Business combinations, divestitures, curtailments, settlements and special termination benefits— — — (205)
Benefit obligation at end of year$— $— $— $— 
A reconciliation of the beginning and ending balances of the fair value of plan assets is as follows:
Pension BenefitsPostretirement Benefits
2022202120222021
(In Thousands)
Fair value of plan assets at beginning of year$— $— $— $— 
Reporting entity contribution— 1,428 — 18 
Plan participants' contributions— — — 1 
Benefits paid— (1,428)— (19)
Fair value of plan assets at end of year$— $— $— $— 
The funded status of the plans are as follows:
Pension BenefitsPostretirement Benefits
2022202120222021
(In Thousands)
Components:
Prepaid benefit costs$— $— $— $— 
Overfunded plan assets— — — — 
Accrued benefit costs— — — — 
Liability for pension benefits— — — — 
Assets and Liabilities recognized:
Assets (nonadmitted)$— $— $— $— 
Liabilities recognized— — — — 
Unrecognized liabilities$— $— $— $— 
50

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


The amount of the net periodic benefit cost recognized is shown below:
Pension BenefitsPostretirement Benefits
202220212020202220212020
(In Thousands)
Interest cost— — 580 — — 6 
Transition asset or obligation— — 577 — — — 
Gains and losses— — 1,178 — — (171)
Prior service cost or credit— — — — — (111)
Total net periodic benefit cost$— $— $2,335 $— $— $(276)
The amounts in unassigned funds (surplus) recognized as components of net periodic benefit cost are as follows:
Pension BenefitsPostretirement Benefits
202220212020202220212020
(In Thousands)
Items not yet recognized - prior year$— $6,719 $6,850 $— $(1,655)$(1,944)
Net transition asset or obligation recognized— — (577)— — — 
Net prior service cost or credit recognized— — — — — 111 
Net gain and loss arising during period— — 1,624 — — 8 
Net gain and loss recognized— (6,719)(1,178)— 1,655 171 
Items not yet recognized - current year$— $— $6,719 $— $— $(1,655)
The amounts in unassigned funds (surplus) that have not yet been recognized as components of net periodic benefit cost are as follows:
Pension BenefitsPostretirement Benefits
202220212020202220212020
(In Thousands)
Net prior service cost or credit— — — — — (299)
Net recognized gains and losses— — 6,719 — — (1,356)
Assumptions used in determining year-end liabilities for the defined benefit plans as of December 31, 2022 and 2021 were as follows:
20222021
Weighted average discount rate— %— %
The weighted-average discount rate used to determine year-end liabilities of other benefit plans was 0.00% and 0.00% as of December 31, 2022 and 2021, respectively.
Assumptions used in determining expense for the defined benefit plans as of January 1, 2022, 2021 and 2020 were as follows:
202220212020
Weighted average discount rate0.00 %0.00 %3.36 %
51

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


The weighted-average discount rate used to determine expense of other benefit plans was 0.00%, 0.00%, and 2.96% as of January 1, 2022, 2021, and 2020 respectively.
The annual assumed rate of increase in the per capita cost of covered benefits (i.e. health care cost trend rate) for the medical plan is 0.00%.
The amount of accumulated benefit obligation for defined benefit pension plans was $0.0 and $0.0 as of December 31, 2022 and 2021, respectively.
As part of the Individual Life Transaction referenced in Note 1, the obligations under the nonqualified defined benefit pension plan transferred to Voya Service Company ("VSC"). As a result, the Company does not have any regulatory contributions required in 2023, nor does the Company intend to make voluntary contributions in 2023. These obligations are not included in the Individual Life Transaction referenced in Note 1, and therefore the Company does not expect to pay any benefits in future years.
7.    Separate Accounts
Separate account assets and liabilities represent funds segregated by the Company for the benefit of certain policy and contract holders who bear the investment risk. Revenues and expenses on the separate account assets and related liabilities equal the benefits paid to the separate account policy and contract holders.
The general nature and characteristics of separate accounts business is as follows:
December 31, 2022December 31, 2021
(In Thousands)
Non-Guaranteed Separate Accounts
Premium, consideration or deposits for the year$39,294 $43,398 
Reserves for separate accounts with assets at:
Fair value$1,366,708 $1,784,220 
Total reserves$1,366,708 $1,784,220 
Reserves for separate accounts by withdrawal characteristics:
Subject to discretionary withdrawal:
At fair value$1,366,708 $1,784,220 
Total reserves$1,366,708 $1,784,220 
The Company utilizes separate accounts to record and account for assets and liabilities for particular lines of business. For the years ended December 31, 2022 and 2021, the Company reported assets and liabilities from Individual Annuity and Individual Life product lines in separate accounts.
52

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


Assets in the separate account are considered legally insulated from the general account, providing protection of such assets from being available to satisfy claims resulting in the general account. The assets legally and not legally insulated from the general account are summarized in the following table, by product or transaction type:
December 31, 2022December 31, 2021
Product or TransactionLegally Insulated AssetsNot Legally Insulated AssetsLegally Insulated AssetsNot Legally Insulated Assets
(In Thousands)
Individual life$1,357,026 $— $1,774,448 $— 
Individual annuity7,324 — 13,101 — 
Total$1,364,350 $— $1,787,549 $— 
Separate account assets for products registered with the SEC totaled $1,319.7 and $1,716.3 as of December 31, 2022 and 2021, respectively. Separate account assets for products not registered with the SEC totaled $44.7 and $71.2; all of which were Private Placement Variable Universal Life Products, as of December 31, 2022 and 2021, respectively.
In accordance with the products/transactions recorded within the separate account, some separate account liabilities are guaranteed by the general account. To compensate the general account for the risk taken, the separate account paid the following amount in risk charges:
Year endedRisk Charges
(In Thousands)
2022$22 
202121 
202021 
201921 
201824 
The Company’s general account did not pay any separate account guarantees for the years ended December 31, 2022, 2021 and 2020.
The Company does not engage in securities lending transactions within its separate accounts.
A reconciliation of the amounts transferred to and from the separate accounts is presented below:
Year ended December 31
202220212020
(In Thousands)
Transfers as reported in the summary of operations
of the separate accounts statement:
Transfers to separate accounts$39,294 $43,398 $47,770 
Transfers from separate accounts(85,055)(92,207)(87,268)
Transfers as reported in the summary of operations$(45,761)$(48,809)$(39,498)
53

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


8.    Federal Income Taxes
The Company has entered into a tax allocation agreement with members of an affiliated group. The agreement provides for the manner of calculation and the amounts/timing of the payments between the parties as well as other related matters in connection with the filing of consolidated federal, state, local or foreign tax returns. The tax allocation agreement provides that each subsidiary will make a payment to Resolution Life Colorado Inc. equal to its tax liability computed on a separate company basis and such payment will be reduced by any losses, loss carryforwards or other tax attributes that reduced the group's liability and which are allocable to the subsidiary.
The following is a list of all affiliated companies that participate in the filing of this consolidated federal income tax return:
Resolution Life Colorado Inc.
Security Life of Denver Insurance Company
Roaring River II, Inc.
Midwestern United Life Insurance Company
Security Life of Denver International Limited
Under the intercompany tax allocation agreement, the Company had a receivable/(payable) of $21.1 at December 31, 2022 and $(19.9) at December 31, 2021 respectively, to/from Resolution Life Colorado Inc., an affiliate, for federal income taxes.
Current income taxes incurred consisted of the following major components:
Year ended December 31
202220212020
(In Thousands)
Federal tax (benefit) expense on operations$(5,622)$(59,971)$28,557 
Federal tax (benefit) expense on capital gains and losses(9,699)89,485 1,414 
Total current tax (benefit) expense incurred$(15,321)$29,514 $29,971 
54

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


The components of deferred tax asset and deferred tax liability that make up a Net Deferred Tax Asset ("DTA") at December 31, 2022 and 2021 are as follows:
12/31/2212/31/21Change
OrdinaryCapitalTotalOrdinaryCapitalTotalOrdinaryCapitalTotal
(In Thousands)
Gross DTAs$508,372 $130,730 $639,102 $631,047 $43,209 $674,256 $(122,675)$87,521 $(35,154)
Statutory valuation allowance adjustments— 99,910 99,910 — — — — 99,910 99,910 
Adjusted gross DTAs508,372 30,820 539,192 631,047 43,209 674,256 (122,675)(12,389)(135,064)
Nonadmitted DTAs285,489 — 285,489 311,986 — 311,986 (26,497)— (26,497)
Subtotal net admitted DTAs222,883 30,820 253,703 319,061 43,209 362,270 (96,178)(12,389)(108,567)
Deferred tax liabilities75,552 30,820 106,372 208,860 43,209 252,069 (133,308)(12,389)(145,697)
Net admitted DTA (DTL)$147,331 $— $147,331 $110,201 $— $110,201 $37,130 $— $37,130 
The admission calculation components by tax character of admitted adjusted gross deferred tax assets as the result of the application of SSAP No. 101 as of December 31, 2022 and 2021 are as follows:
12/31/202212/31/2021Change
OrdinaryCapitalTotalOrdinaryCapitalTotalOrdinaryCapitalTotal
(In Thousands)
a.Federal income taxes paid in prior years recoverable through loss carrybacks$— $— $— $— $— $— $— $— $— 
b.Adjusted gross DTAs expected to be realized (excluding the amount of DTAs from (a)) after application of the threshold limitation (the lesser of (b)1 and (b)2 below)147,331 — 147,331 110,201 — 110,201 37,130 — 37,130 
1. Adjusted gross DTAs expected to be realized following the balance sheet date147,331 — 147,331 110,201 — 110,201 37,130 — 37,130 
2. Adjusted gross DTAs allowed per limitation thresholdXXXXXX167,849 XXXXXX165,510 XXXXXX2,339 
c.Adjusted gross DTAs (excluding the amount of DTAs from (a) and (b) above) offset by gross deferred tax liabilities75,552 30,820 106,372 208,860 43,209 252,069 (133,308)(12,389)(145,697)
d.Deferred tax assets admitted as the result of application SSAP No. 101 Total$222,883 $30,820 $253,703 $319,061 $43,209 $362,270 $(96,178)$(12,389)$(108,567)
55

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


The ratio percentage and the amount of adjusted capital and surplus used to determine the recovery period and threshold limitation are as follows:
20222021
(Amounts in Thousands)
Ratio percentage used to determine recovery period and threshold limitation amount786.6 %766.9 %
Amount of adjusted capital and surplus used to determine recovery period and threshold limitation$1,432,336 $1,393,053 
Below shows the calculation to determine the impact of tax planning strategies on adjusted gross and net admitted DTAs:
12/31/202212/31/2021Change
OrdinaryCapitalOrdinaryCapitalOrdinaryCapital
(Amounts in Thousands)
Adjusted gross DTAs$508,372 $30,820 $631,047 $43,209 $(122,675)$(12,389)
Percentage of adjusted gross DTAs by tax character attributable to the impact of tax planning strategies0.00%0.00%0.00%0.00%0.00%0.00%
Net Admitted Adjusted Gross DTAs$222,883 $30,820 $319,061 $43,209 $(96,178)$(12,389)
Percentage of net admitted adjusted gross DTAs by tax character admitted because of the impact of tax planning strategies1.75%0.00%20.59%0.00%(18.84)%0.00%
The Company’s tax planning strategies do include the use of reinsurance.
56

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


The significant components of deferred tax assets and deferred tax liabilities are as follows:
12/31/202212/31/2021Change
 (In Thousands)
Deferred tax assets:
Ordinary:
Unearned premium reserve$1 $1 $— 
Policyholder reserves157,004 210,431 (53,427)
Investments76,140 143,150 (67,010)
Deferred acquisition costs246,532 264,082 (17,550)
Policyholder dividends accrual4,846 4,993 (147)
Compensation and benefits accrual— 3 (3)
Receivables - nonadmitted*935 2,110 (1,175)
Net Operating loss carry-forward15,730 — 15,730 
Tax credit carry-forward482 482 — 
Other6,702 5,795 907 
Gross ordinary deferred tax assets508,372 631,047 (122,675)
Nonadmitted285,489 311,986 (26,497)
Admitted ordinary deferred tax assets222,883 319,061 (96,178)
Capital:
Investments30,820 43,209 (12,389)
Net capital loss carry-forward99,910 — 99,910 
Subtotal130,730 43,209 87,521 
Statutory valuation allowance adjustment99,910 — 99,910 
Admitted capital deferred tax assets30,820 43,209 (12,389)
Admitted deferred tax assets$253,703 $362,270 $(108,567)
Deferred tax liabilities:
Ordinary:
Investments$32,854 $159,448 $(126,594)
Deferred and uncollected premiums4,411 4,583 (172)
Policyholder reserves16,780 36,441 (19,661)
Total ordinary deferred tax liabilities54,045 200,472 (146,427)
Capital:
Investments52,327 51,597 730 
Total capital deferred tax liabilities52,327 51,597 730 
Total deferred tax liabilities$106,372 $252,069 $(145,697)
Net admitted deferred tax assets (liabilities)$147,331 $110,201 $37,130 
* Includes other nonadmitted assets
Valuation allowances are provided when it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. As of December 31, 2022 and December 31, 2021, the Company had valuation allowances of $99.9 and $0.0 respectively.
57

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


The provision for federal income tax expense and change in deferred taxes differs from the amount which would be obtained by applying the statutory federal income tax rate to income (including capital items) before income taxes for the following reasons:
Year Ended December 31
202220212020
AmountEffective Tax RateAmountEffective Tax RateAmountEffective Tax Rate
(Amounts In Thousands)
Ordinary (loss) income$330,721 $(576,948)$(8,463)
Capital (losses) gains(143,673)7,777 (8,299)
Total pretax (loss) income187,048 (569,171)(16,762)
Expected tax (benefit) expense at 21% statutory rate
39,280 21.0 %(119,526)21.0 %(3,520)21.0 %
Increase (decrease) in actual tax reported resulting from:
Dividends received deduction(1,733)(0.9)%(846)0.1 %(905)5.4 %
Interest maintenance reserve(88,176)(47.0)%327,494 (57.4)%2,796 (16.7)%
Reinsurance(6,777)(3.6)%34,865 (6.1)%(7,248)43.2 %
NOL adjustment— — %(507,278)89.1 %— — %
Change in valuation allowance99,910 53.4 %— — %— — %
Other(1,377)-0.9 %(11,462)2.0 %1,067 (6.4)%
Total income tax reported$41,127 22.0 %$(276,753)48.7 %$(7,810)46.5 %
Current income taxes incurred$(15,321)(8.2)%$29,514 (5.2)%$29,971 (178.9)%
Change in deferred income tax*56,448 30.2 %(306,267)53.8 %(37,781)225.4 %
Total income tax reported$41,127 22.0 %$(276,753)48.6 %$(7,810)46.5 %
* Excluding tax on unrealized gains (losses) and other surplus items.
As of December 31, 2022, the Company's loss carry-forwards originated and expires as follows:
Year of OriginationYear of ExpirationAmount
(In Thousands)
Net capital loss carry-forward20222027$475,764 
Total Net capital loss carry-forward*$475,764 
Net operating loss 2022NONE$74,905 
Total Net operating loss carry-forward*$74,905 
*Tax allocation agreement allows for members of the consolidated group to share losses generated on a separate company basis.
There are no amounts of federal income tax incurred that will be available for recoupment in the event of future net losses from 2022 and 2021.
There were no deposits admitted under Section 6603 of the Internal Revenue Service Code as of December 31, 2022 and 2021.
58

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


The Company has no unrecognized tax benefits as of December 31, 2022 and 2021.
The Company has no unrecognized tax benefits for which it is reasonably possible that the total liability will significantly increase within twelve months of the reporting date.
The Company had no unrecognized tax benefits as of December 31, 2022 and 2021, that would affect the Company’s effective tax rate if recognized.
The Company does not have any transferable state tax credit assets at December 31, 2022.

The Company does not have any non-transferable or nonadmitted state tax credit assets at December 31, 2022.
The Company did not recognize an impairment loss on state transferable and non-transferable tax credits for the year ended December 31, 2022 and 2021, respectively.
The Company recognizes accrued interest and penalties related to unrecognized tax benefits in Federal income taxes and Federal income tax expense on the statements of admitted assets, liabilities and capital and surplus and statement of operations, respectively. The Company had no accrued interest or penalties as of December 31, 2022, 2021 and 2020.
For tax year 2020, as a part of Voya Financial, Inc., the Company participated in the IRS Compliance Assurance Process ("CAP"), which is a continuous audit program provided by the IRS. For the period ended December 31, 2020, the IRS has determined that Voya Financial, Inc. would be in the Compliance Maintenance Bridge (Bridge) phase of CAP. In the Bridge phase, the IRS does not intend to conduct any review, or provide any letters of assurance for the tax year. Tax years 2021 and 2022 remain open and may be subject to examination.
The Coronavirus Aid, Relief, and Economic Security ("CARES") Act, which became effective on March 27, 2020 and the Consolidated Appropriations Act, which became effective on December 27, 2020, have not had any material impact on corporate income taxes.

The Inflation Reduction Act ("Act") was enacted on August 16, 2022, and included a new corporate alternative minimum tax ("CAMT"). The Act and the CAMT go into effect for tax years beginning after 2022. The Company has determined that it does not expect to be subject to CAMT in 2023. The Company will continue to monitor in case future facts change this determination.
59

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


9.    Investment in Subsidiaries
The Company has two wholly owned insurance subsidiaries, Midwestern United Life Insurance Company ("Midwestern"), and RRII. The Company also has one wholly owned non-insurance subsidiary, SLD America Equities, Inc. ("SLD AE").
Amounts invested in and advanced to the Company’s subsidiaries are summarized as follows:
December 31
20222021
(In Thousands)
Common stock (cost - $67,246 in 2022 and $107,246 in 2021)
$161,373 $147,248 
Total investment in subsidiaries$161,373 $147,248 
At December 31, 2022 and 2021, the Company had no amounts nonadmitted related to its investment in SCA entities.
The Company does not have any investments for which the audited equity reflects a departure from NAIC SSAP.
10.    Reinsurance
The Company is involved in both ceded and assumed reinsurance with other companies for the purpose of diversifying risk and limiting exposure on larger risks. To the extent that the assuming companies become unable to meet their obligations under these treaties, the Company remains contingently liable to its policyholders for the portion reinsured. To minimize its exposure to significant losses from reinsurer insolvencies, the Company evaluates the financial condition of the reinsurer and monitors concentrations of credit risk.

As part of the Individual Life Transaction, the Company entered into an agreement to assume on a coinsurance basis with assets transferred to a comfort trust for general account liabilities and on a modified coinsurance basis for separate account liabilities with the following former related entities: ReliaStar Life Insurance Company ("RLI"), ReliaStar Life Insurance Company of New York ("RNY"), and Voya Retirement Insurance and Annuity Company ("VRIAC"). The coinsurance/modified coinsurance agreements with RLI, RNY and VRIAC cover all remaining life business not already reinsured with other reinsurers (including life business assumed from other insurers) from RLI and RNY, the majority of fixed and variable annuity products not already reinsured with other reinsurers from RLI and RNY, and certain fixed and variable annuity and pension risk transfer products from VRIAC. The liabilities covered under the agreement are reinsured on a 100% quota share basis from RLI and VRIAC and a 75% quota share basis from RNY. In preparation for transactions required by the MTA, the Company recaptured several reinsurance agreements with the following
60

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


parties: RLI, RR4, SLDI, Hannover Re, New Reinsurance Company Ltd., FNL Insurance Company, Ltd. ("FNL"), and The Canada Life Assurance Company.

Additionally, the Company entered into reinsurance agreements on a coinsurance with funds withheld basis with SLDI, RRII, FNL, and Partner Reinsurance Europe SE – Zurich Branch ("Partner Re") in order to facilitate the financing of excess reserve requirements associated with Regulation XXX/AG38 and Regulation AXXX which require insurers to hold significantly higher levels of reserves on certain term products and return of premium endowment term insurance products and certain riders and on universal life insurance products with secondary guarantees. Such reinsurance enables the Company to use both traditional and alternative sources of collateral to fund the excess reserve requirements and is generally able to secure longer term financing on a more capital efficient basis.

Effective October 1, 2021, the Company entered into an agreement under which the Company assumes from Lincoln National Life Insurance Company ("Lincoln") on a 100% coinsurance (modco for separate accounts) basis its interest and liabilities with respect to certain universal life and variable universal life products. The Company also entered into an agreement under which the Company cedes to New Reinsurance Company, Ltd. on a coinsurance with funds withheld basis combined with a yearly renewable term basis certain universal life and variable universal life products that were assumed from Lincoln.

The Company’s ceded reinsurance arrangements reduced certain items in the accompanying financial statements by the following amounts:
December 31
202220212020
(In Thousands)
Statements of operations
Premiums$1,155,062 $5,176,647 $853,920 
Benefits and other expenses1,365,901 1,994,645 1,505,956 
Statements of admitted assets, liabilities, and capital and surplus
Deferred and uncollected premiums496,621 531,926 
Policy and contract liabilities17,207,151 17,528,928 
The Company does not have any reinsurance agreement in effect under which the reinsurer may unilaterally cancel the agreement.
Assumed premiums amounted to $962.5, $20,873.1 and $414.9 for 2022, 2021 and 2020, respectively.
The Company estimates that an aggregate reduction in surplus of $2,584.6 would occur in the event that all reinsurance agreements were terminated, by either party, as of December 31, 2022. The amount estimated as of December 31, 2021 and 2020 was $1,671.2 and $7,403.0, respectively.
61

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


11.    Capital and Surplus
Under Colorado insurance regulations, the Company is required to maintain a minimum total capital and surplus of $1.5. Additionally, as a condition of approving the Individual Life Transaction, the Colorado Division of Insurance has required that any dividend or distribution made prior to January 4, 2025 must be approved by the Division as though it were an extraordinary dividend or distribution. An extraordinary dividend or distribution is defined as a dividend or distribution that, together with other dividends and distributions made within the preceding twelve months, exceeds the lesser of (1) 10% of the insurer’s policyholder surplus as of the preceding December 31 or (2) the insurer's net gain from operations for the twelve-month period ended the preceding December 31, in each case determined in accordance with statutory accounting principles.
The Company's capital is common stock, with 149 shares authorized and 144 shares issued and outstanding with a par value of $20,000 per share as of December 31, 2022.
On January 4, 2021, at closing of the Individual Life Transaction, RLCO purchased the 1994, 2000 and 2019 surplus notes from a Voya Financial, Inc. subsidiary for an amount equal to the principal plus interest accrued through January 4, 2021. Immediately following the purchase of the surplus notes, on January 4, 2021, RLCO contributed the 1994, 2000, and 2019 notes to the Company, resulting in the extinguishment of these surplus notes. As a result of the extinguishment, the reclassification of the principal as of January 4, 2021 between surplus notes and gross paid in and contributed surplus of $96.0 occurred during the period. RLCO also forgave the accrued interest on the notes, resulting in a capital contribution of $33.6.
On January 4, 2021, the 2017 and 2018 notes were restructured into one surplus note with a fixed interest rate of 5.0% and a maturity date of January 4, 2031. On September 7, 2021, the Colorado Insurance Commissioner approved a Second Amended and Restated Surplus Note Agreement which extends the Scheduled Maturity Date to January 1, 2036 and restricts the prepayment of principal until January 4, 2026. The Second Amended and Restated Surplus Note Agreement was effective as of January 4, 2021. Any payment of principal and/or interest is subject to the prior approval of the Colorado Insurance Commissioner.
62

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


The Company's surplus notes as of December 31, 2022 are as follows:
Date IssuedInterest RateOriginal Issue Amount of NoteIs Surplus Note Holder a Related Party (Y/N)Carrying Value of Note Prior YearCarrying Value of Note Current Year*Unapproved Interest And/Or Principal
(In Thousands)
1/4/20215%$123,000 N$123,000 $123,000 $— 
XXXXXX$123,000 XXX$123,000 $123,000 $— 
Current year Interest Expense RecognizedLife-To-Date Interest Expense RecognizedCurrent Year Interest Offset Percentage (not including amounts paid to a 3rd party liquidity provider).Current Year Principal PaidLife-To-Date Principal PaidDate of Maturity
$6,048 $12,232 0.0 %$0 $0 1/1/2036
$6,048 $12,232 XXX$— $— XXX
Are Surplus Note payments contractually linked? (Y/N)Surplus Note payments subject to administrative offsetting provisions? (Y/N)Were Surplus Notes proceeds used to purchase an asset directly from the holder of the surplus note? (Y/N)Is Asset Issuer a Related Party (Y/N)Type of Assets Received Upon Issuance
YNNN
Principal Amount of Assets Received Upon IssuanceBook/Adjusted Carry Value of AssetsIs Liquidity Source a Related Party to the Surplus Note Issuer? (Y/N)
$— $— N
$— $— XXX
As of December 31, 2020, the Company had five surplus notes outstanding, which were owned by a former affiliate, SLDI Georgia Holdings, Inc. Principle and interest paid under these notes for the year ended December 31, 2020 was $70.1.

Life and health insurance companies are subject to certain risk-based capital ("RBC") requirements as specified by the NAIC. Under those requirements, the amount of capital and surplus maintained by a life and health insurance company is to be determined based on the various risk factors related to it. The Company exceeded the minimum RBC requirements that would require any regulatory or corrective action for all periods presented herein.
12.    Fair Values of Financial Instruments
The fair value of an asset is the amount at which that asset could be bought or sold in a current transaction between willing parties other than in a forced or liquidation sale. The fair value of a liability is the amount at which that liability could be incurred or settled in a current transaction between willing parties other than in a forced or liquidation sale.
Fair values are based on quoted market prices when available. When market prices are not available, fair value is generally estimated using discounted cash flow analyses, incorporating
63

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


current market inputs for similar financial instruments with comparable terms and credit quality (matrix pricing). In instances where there is little or no market activity for the same or similar instruments, the Company estimates fair value using methods, models and assumptions that management believes market participants would use to determine a current transaction price. These valuation techniques involve some level of management estimation and judgment which becomes more significant with increasingly complex instruments or pricing models. Where appropriate, adjustments are included to reflect the risk inherent in a particular methodology, model or input used.
In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the financial instrument. Accordingly, the aggregate fair value amounts presented herein do not represent the underlying value of the Company.
Life insurance liabilities that contain mortality risk and all nonfinancial instruments have been excluded from the disclosure requirements. However, the fair values of liabilities under all insurance contracts are taken into consideration in the Company’s overall management of interest rate risk, such that the Company’s exposure to changing interest rates is minimized through the matching of investment maturities with amounts due under insurance contracts.

The Company’s composition of asset mix can change from period to period and all assets described below may not be held at December 31, 2022.
The following methods and assumptions are used by the Company in estimating the fair value disclosures for financial instruments in the accompanying financial statements and notes thereto:
Bonds and equity securities: The Company utilizes a number of valuation methodologies to determine the fair values of its bonds, preferred stocks and common stocks reported herein in conformity with the concepts of “exit price” and the fair value measurement as prescribed in SSAP No. 100R, Fair Value ("SSAP No. 100R"). Valuations are obtained from third party commercial pricing services, brokers, and industry-standard vendor-provided software that models the value based on market observable inputs. The valuations obtained from brokers and third-party commercial pricing services are non-binding. The valuations are reviewed and validated through price variance review, comparisons to internal pricing models, back testing to recent trades, or monitoring of trading volumes.

Fair values of privately placed bonds are typically determined using a matrix-based pricing model. The model considers the current level of risk-free interest rates, current corporate spreads, the credit quality of the issuer, and cash flow characteristics of the
64

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


security. Also considered are factors such as the net worth of the borrower, the value of collateral, the capital structure of the borrower, the presence of guarantees, and the Company’s evaluation of the borrower’s ability to compete in its relevant market. Using this data, the model generates estimated market values which the Company considers reflective of the fair value of each privately placed bond.

Fair values for actively traded marketable bonds are determined based upon quoted market prices and are classified as Level 1 assets. Corporate bonds, ABS, U.S. agency bonds, and foreign securities use observable pricing method such as matrix pricing, market corroborated pricing or inputs such as yield curves and indices. These investments are classified as Level 2. All other bonds are classified as level 2 or 3.

For securities not actively traded, fair values are estimated using values obtained from independent pricing services or, in the case of private placement investments, are estimated by discounting the expected future cash flows. The discount rates used vary as a function of factors such as yield, credit quality and maturity. The Company's statutory fair values represent the amount that would be received to sell securities at the measurement date, i.e., “exit price” concept.

Mortgage loans: Estimated fair values for commercial real estate loans were generated using a discounted cash flow approach. Loans in good standing are discounted using interest rates determined by U.S. Treasury yields on December 31 and spreads applied on new loans with similar characteristics. The amortizing features of all loans are incorporated in the valuation. Where data on option features is available, option values are determined using a binomial valuation method, and are incorporated into the mortgage valuation. Restructured loans are valued in the same manner; however, these loans were discounted at a greater spread to reflect increased risk.

The carrying value of all other financial instruments approximates their fair value.
Included in various investment related line items in the financial statements are certain financial instruments carried at fair value. Other financial instruments are periodically measured at fair value, such as when impaired, or, for certain bonds and preferred stock, when carried at the lower of cost or market.

Derivatives are carried at fair value which is determined using observable key financial data from third-party sources, such as yield curves, exchange rates, Standard and Poor’s (“S&P”) 500 Index prices, London Interbank Offered Rates ("LIBOR") and Overnight Indexed Swap Rates ("OIS"). Effective June 30, 2022, the Company began using the OIS curve for discounting cash flows rather than LIBOR curve for rate derivatives. The Company typically utilizes values established by third-party brokers. Derivatives which qualify for hedge accounting treatment are reported in a manner that is consistent with the accounting for the hedged asset or liability.

65

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


The Company's financial assets and liabilities have been classified, for disclosure purposes, based on a hierarchy defined by SSAP No. 100R.
The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded at fair value on the balance sheets are categorized as follows:
▪Level 1 - Unadjusted quoted prices for identical assets or liabilities in an active market.
▪Level 2 - Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:
a)Quoted prices for similar assets or liabilities in active markets;
b)Quoted prices for identical or similar assets or liabilities in non-active markets;
c)Inputs other than quoted market prices that are observable; and
d)Inputs that are derived principally from or corroborated by observable market data through correlation or other means.
▪Level 3 - Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These valuations, whether derived internally or obtained from a third party, use critical assumptions that are not widely available to estimate market participant expectations in valuing the asset or liability.
The following valuation methods and assumptions were used by the Company in estimating the reported values for the investments and derivatives described below:
Bonds and other invested assets: Securities that are carried at fair value on the balance sheet are classified as Level 2 or Level 3. Level 2 bond prices are obtained through several commercial pricing services, which incorporate a variety of market observable information in their valuation techniques, including benchmark yields, broker-dealer quotes, credit quality, issuer spreads, bids, offers and other reference data to provide estimated fair values. Fair value for privately placed bonds and other invested assets are determined using a matrix-based pricing model and are classified as Level 2 assets. When a price cannot be obtained from a commercial pricing service, independent broker quotes are solicited. Securities priced using independent broker quotes are classified as Level 3. The Company's Level 3 fair value measurements of its bonds and other invested assets are primarily based on broker quotes for which the quantitative detail of the unobservable inputs is neither provided nor reasonably corroborated, thus negating the ability to perform a sensitivity analysis.

66

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


Preferred and Common Stock: Fair values of publicly traded equity securities are based upon quoted market price and are classified as Level 1 assets. Certain preferred and common stock prices are obtained through commercial pricing services and are classified as Level 2 assets. Other equity securities, typically private equities or equity securities not traded on an exchange, are valued by other sources such as analytics or brokers and are classified as Level 3 assets.
Cash equivalents and short-term investments: The fair values for cash equivalents and short-term investments are generally determined based on quoted market prices. These assets are classified as Level 1 and Level 2.
Assets held in separate accounts: Assets held in separate accounts are reported at the quoted fair values of the underlying investments in the separate accounts. Mutual funds, short-term investments and cash are based upon a quoted market price and are included in Level 1 and Level 2.
Derivatives: Certain derivatives are carried at fair value which is determined using observable key financial data such as yield curves, exchange rates, S&P 500 Index prices, LIBOR, and OIS. Derivatives fair values are generally obtained from third party sources. Counterparty credit risk is considered and incorporated in the Company’s valuation process through counterparty credit rating requirements and monitoring of overall exposure. The Company’s own credit risk is monitored by comparison of credit ratings from national rating services. It is the Company’s policy to transact only with investment grade counterparties with a credit rating of A- or better.
Mortgage loans: The fair values for mortgage loans are estimated on a monthly basis using discounted cash flow analyses and rates currently being offered in the marketplace for similar loans to borrowers with similar credit ratings. Loans with similar characteristics are aggregated for purposes of the calculations. Mortgage loans are classified as Level 3.
Contract loans: The fair value of contract loans approximates the carrying value of the loans. Contract loans are collateralized by the cash surrender value of the associated insurance contracts and are classified as Level 2.
Deposit type contracts: Fair value is estimated as the present value of expected cash flows associated with the contract liabilities discounted using risk-free rates plus an adjustment for nonperformance risk. The valuation is consistent with current market parameters. Margins for non-financial risks associated with the contract liabilities are also included. These liabilities are classified as Level 3. For certain deposit type contracts, fair value is estimated by discounting cash flows at rates that are risk-free rates plus an adjustment for nonperformance risk. These liabilities are classified as Level 2.
67

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


Supplementary contracts and immediate annuities: Fair value is estimated as the present value of expected cash flows associated with the contract liabilities discounted using risk-free rates plus an adjustment for nonperformance risk. The valuation is consistent with current market parameters. Margins for non-financial risks associated with the contract liabilities are also included. These liabilities are classified as Level 3.
The following table shows the Company’s financial instruments and the Level within the fair value hierarchy in which the fair value measurements fall as of December 31, 2022:
Aggregate Fair ValueCarrying ValueLevel 1Level 2Level 3
(In Thousands)
Assets:
Bonds$19,546,618 $24,476,528 $154,122 $17,334,993 $2,057,503 
Preferred stock8,061 8,579 — 5,031 3,030 
Common stock (unaffiliated)85,122 85,122 — 75,886 9,236 
Mortgage loans2,422,294 2,631,708 — — 2,422,294 
Contract loans1,522,059 1,522,059 — 1,522,059 — 
Other invested assets121,142 138,922 — 80,963 40,179 
Cash equivalents and short-term investments301,432 301,432 266,432 35,000 — 
Derivatives
Credit contracts3,302 2,297 — 3,302 — 
Equity contracts207,671 207,670 — 34,851 172,820 
Foreign exchange contracts11,493 4,460 — 11,493 — 
Interest rate contracts(7,747)2,949 — (7,747)— 
Separate account assets1,364,350 1,364,350 1,355,931 8,419 — 
Total Assets$25,585,797 $30,746,076 $1,776,485 $19,104,250 $4,705,062 
Liabilities:
Supplementary contracts and immediate annuities$189,865 $241,373 $— $— $189,865 
Deposit type contracts1,980,802 1,969,426 — 1,980,802 — 
Derivatives
Equity contracts16,807 16,807 — 16,807 — 
Foreign exchange contracts1 1 — 1 — 
Interest rate contracts742 742 — 742 — 
Total Liabilities$2,188,217 $2,228,349 $— $1,998,352 $189,865 
The Company did not have any financial instruments for which it was not practicable to estimate the fair value or measured and reported at net asset value ("NAV") at December 31, 2022.
68

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


The following table shows the Company’s financial instruments and the Level within the fair value hierarchy in which the fair value measurements fall as of December 31, 2021:
Aggregate Fair ValueCarrying ValueLevel 1Level 2Level 3
(In Thousands)
Assets:
Bonds$26,678,953 $25,694,336 $675,425 $24,837,133 $1,166,395 
Preferred stock11,128 11,048 7,559 — 3,569 
Common stock72,966 72,966 4,369 66,091 2,506 
Mortgage loans2,555,918 2,452,617 — — 2,555,918 
Contract loans1,529,796 1,529,796 — 1,529,796 — 
Other invested assets122,346 111,360 — 122,346 — 
Cash equivalents and short-term investments22,079 22,079 3,500 18,579 — 
Derivatives
Equity contracts521,613 521,613 — 84,279 437,334 
Foreign exchange contracts3,097 1,515 — 3,097 — 
Interest rate contracts(199)420 — (199)— 
Separate account assets1,787,549 1,787,549 1,770,281 17,268 — 
Total Assets$33,305,246 $32,205,299 $2,461,134 $26,678,390 $4,165,722 
Liabilities:
Supplementary contracts and immediate annuities$288,564 $267,950 $— $— $288,564 
Deposit type contracts1,735,761 1,654,727 — 1,735,757 4 
Derivatives
Equity contracts42,946 42,946 — 42,946 — 
Foreign exchange contracts(219)1,338 — (219)— 
Interest rate contracts8,448 1,455 — 8,448 — 
Short-term debt235,000 235,000 — 235,000 — 
Total Liabilities$2,310,500 $2,203,416 $— $2,021,932 $288,568 
The Company did not have any financial instruments for which it was not practicable to estimate the fair value or measured and reported at NAV at December 31, 2021.
69

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


The table below shows assets and liabilities measured and reported at fair value as of December 31, 2022:
Level 1Level 2Level 3Total
(In Thousands)
Assets:
Bonds:
Foreign$— $19 $— $19 
Residential mortgage-backed— 345 — 345 
Preferred stock— 5,031 102 5,133 
Common stock— 75,886 9,236 85,122 
Derivatives:
Equity contracts— 34,617 172,820 207,437 
Foreign exchange contracts— 1,117 — 1,117 
Interest rate contracts— 2,949 — 2,949 
Separate account assets1,355,931 8,419 — 1,364,350 
Total assets$1,355,931 $128,383 $182,158 $1,666,472 
Liabilities:
Deposit type contracts$— $323,775 $— $323,775 
Derivatives:
Equity contracts— 16,807 — 16,807 
Foreign exchange contracts— 1 — 1 
Interest rate contracts— 742 — 742 
Total liabilities$— $341,325 $— $341,325 
The table below shows assets and liabilities measured and reported at fair value as of December 31, 2021:
Level 1Level 2Level 3Total
(In Thousands)
Assets:
Bonds:
Foreign$— $48 $13 $61 
Residential mortgage-backed— 1,485 — 1,485 
Preferred stock2,000 — 102 2,102 
Common stock4,369 66,091 2,507 72,967 
Derivatives:
Equity contracts— 84,279 437,334 521,613 
Foreign exchange contracts— 1,039 — 1,039 
Interest rate contracts— 420 — 420 
Separate account assets1,770,280 17,268 — 1,787,548 
Total assets$1,776,649 $170,630 $439,956 $2,387,235 
Liabilities:
Deposit type contracts$— $175,508 $— $175,508 
Derivatives:
Equity contracts— 42,946 — 42,946 
Foreign exchange contracts— 82 — 82 
Interest rate contracts— 1,455 — 1,455 
Total liabilities$— $219,991 $— $219,991 
70

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


The following table summarizes the change in fair value of the Company’s Level 3 assets and liabilities for the year ended December 31, 2022:
DescriptionBeginning of the YearTransfers into Level 3Transfers Out of Level 3Total Gains and (Losses) Included in Net IncomeTotal Gains and (Losses) Included in SurplusPurchasesIssuancesSalesSettlementsEnd of the Year
(In Thousands)
Bonds
Foreign$13 $— $(13)$— $— $— $— $— $— $— 
Preferred Stock102 — — — — — — — — 102 
Common Stock2,507 — — — (4,322)11,051 — — — 9,236 
Derivatives
Equity contracts437,334 — — 104,303 (335,214)82,863 — (116,466)— 172,820 
Total return swaps— — — — — — — — — — 
Total$439,956 $— $(13)$104,303 $(339,536)$93,914 $— $(116,466)$— $182,158 
The following table summarizes the change in fair value of the Company’s Level 3 assets and liabilities for the year ended December 31, 2021:
DescriptionBeginning of the YearTransfers into Level 3Transfers Out of Level 3Total Gains and (Losses) Included in Net IncomeTotal Gains and (Losses) Included in SurplusPurchasesIssuancesSalesSettlementsEnd of the Year
(In Thousands)
Bonds
Foreign$— $— $— $13 $(27)$27 $— $— $— $13 
Preferred Stock— 102 — — — — — — — 102 
Common Stock2,496 — — — 11 — — — — 2,507 
Derivatives
Equity contracts295,149 — — 160,544 123,782 74,212 — (216,353)— 437,334 
Total return swaps(44,592)— — — — — — — 44,592 — 
Total$253,053 $102 $— $160,557 $123,766 $74,239 $— $(216,353)$44,592 $439,956 
The Company may reclassify assets reported at fair value between levels of the fair value hierarchy established as part of SSAP No. 100R, Fair Value-Revised, if appropriate, based on changes in the quality of valuation inputs available during a reporting period. The policy governing when these transfers are recognized did not change during 2022 or 2021.
The Company’s policy is to recognize transfers in and transfers out as of the beginning of the most recent quarterly reporting period.
71

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


13.    Commitments and Contingencies
Guarantee Agreements: The Company guarantees certain contractual policy claims of its subsidiary, Midwestern. In the unlikely event that Midwestern was unable to fulfill its obligations to policyholders, the Company would be obligated to assume the guaranteed policy obligations. Any ultimate contingent losses in connection with such guarantees will not have a material adverse impact on the Company’s future operations or financial position. The Company recorded a liability of $0.0 related to this guarantee as of December 31, 2022 and 2021. The Company was not required to make any payments related to this guarantee during the years ended 2022 and 2021. The maximum potential of future payments is $0 as of 2022.
Operating Leases: The Company is party to certain cost-sharing arrangements and service agreements with other affiliated Resolution Life U.S. Holdings Inc. companies. Included in these cost-sharing arrangements is rent expense, which is allocated to the Company in accordance with systematic cost allocation arrangements. Under a former cost-sharing and services agreements with Voya Financial, Inc. companies, the rent expense was allocated to the Company in accordance with systematic cost allocation arrangements. The Company incurred rent expense of $2.3 and $2.9 for 2022 and 2021 under this cost-sharing methodology respectively. For 2020 the amounts were minimal.
Legal Proceedings - The Company is involved in threatened or pending lawsuits or arbitrations arising from the normal conduct of business. Due to the climate in insurance and business litigation and arbitrations, suits against the Company sometimes include claims for substantial compensatory, consequential or punitive damages and other types of relief. Certain claims are asserted as class actions, purporting to represent a group of similarly situated individuals.

In addition, the life insurance industry, including the Company, has experienced litigation alleging, for example, that insurance companies have breached the terms of their life insurance policies by increasing the insurance rates of the applicable policies inappropriately or by factoring into rate adjustments elements not disclosed under the terms of the applicable policies, and, consequently, unjustly enriched themselves. This litigation is generally known as cost of insurance litigation. While it is not possible to forecast the outcome of such lawsuits/arbitrations, in light of existing insurance, reinsurance and established reserves, it is the opinion of management that the disposition of such lawsuits/arbitrations will not have a material adverse effect on the Company's operations or financial position. The Company has reached agreement in principle to settle the class action lawsuit titled Advance Trust & Life Escrow Services, LTA v. Security Life of Denver (USDC District of Colorado, No. 1:18-cv-01897) (filed July 26, 2018). The agreement in principle contemplates a cash payment by the Company of $30 million to settle all claims brought on behalf of all members of the certified class. The Company expects that upon final approval of the settlement by the Court, the matter will be dismissed with prejudice as to all class members.
72

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


Regulatory Matters - As with many financial services companies, the Company periodically receives informal and formal requests for information from various state and federal governmental agencies and self-regulatory organizations in connection with examinations, inquiries, investigations and audits of the products and practices of the Company or the financial services industry. Some of the investigations, examinations, audits and inquiries could result in regulatory action against the Company. The potential outcome of such regulatory action is difficult to predict, but could subject the Company to adverse consequences, including, but not limited to, additional payments to beneficiaries, settlement payments, penalties, fines and other financial liability, and changes to the Company's policies and procedures. The potential economic consequences cannot be predicted, but management does not believe that the outcome of any such action will have a material adverse effect on the Company's financial position. It is the practice of the Company to cooperate fully in these matters.
Investment Purchase Commitments: As part of its overall investment strategy, the Company has entered into agreements to purchase private placements and commercial mortgages of $95.7 and $315.7 at December 31, 2022 and 2021, respectively. The Company is also committed to provide additional capital contributions of $445.8 and $376.8 at December 31, 2022 and 2021, respectively, in partnerships.
Liquidity: The Company’s principal sources of liquidity are product charges, investment income, premiums, proceeds from the maturity and sale of investments, and capital contributions. Primary uses of these funds are payments of commissions and operating expenses, interest credits, investment purchases, and contract maturities, withdrawals, death benefits, surrenders and dividends to its parent.
The Company’s liquidity position is managed by maintaining adequate levels of liquid assets, such as cash, cash equivalents, and short-term investments. In addition, the investment portfolio is primarily composed of high quality fixed income investments, which include holdings of U.S. Government securities, high quality corporate bonds and agency backed residential mortgage backed securities. Asset/liability management is integrated into many aspects of the Company’s operations, including investment decisions, product development, and determination of crediting rates. As part of the risk management process, different economic scenarios are modeled, including cash flow testing required for insurance regulatory purposes, to determine that existing assets are adequate to meet projected liability cash flows.
The fixed account liabilities are supported by a general account portfolio principally composed of fixed rate investments with matching duration characteristics that can generate predictable, steady rates of return. The portfolio management strategy for the general account considers the assets available-for-sale. This strategy enables the Company to respond to changes in market interest rates, prepayment risk, relative values of asset sectors and individual securities and loans, credit quality outlook, and other relevant factors. The Company’s asset/liability management discipline includes strategies to minimize exposure to
73

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


loss as interest rates and economic and market conditions change. In executing this strategy, the Company uses derivative instruments to manage these risks. The Company’s derivative counterparties are of high credit quality.
14.    Financing Agreements
The Company has entered into a reciprocal loan agreement with Resolution Life US to promote efficient management of cash and liquidity and to provide for unanticipated short-term cash requirements. Under this agreement, which expires January 4, 2031, the Company and Resolution Life US can borrow up to 3% of the Company's admitted assets excluding separate accounts as of December 31 of the preceding year from one another. Interest on any borrowing by a subsidiary under a reciprocal loan agreement is charged at a rate based on the prevailing market rate for similar third-party borrowing or securities. During 2022, rates ranged from 1.1% to 5.7%. Under this agreement, the Company incurred interest expense of $1.3 and $2.2 and interest income of $0.1 and $0.0 for the years ended December 31, 2022 and 2021. As of December 31, 2022 and 2021, the Company had $35.0 and $12.4 outstanding receivable from and $0.0 and $235.0 outstanding payable to Resolution Life US under the reciprocal loan agreement, respectively.
As of December 31, 2022, the Company is the beneficiary of letters of credit totaling $7.6 The terms of the letters of credit provide for automatic renewal upon anniversary unless otherwise canceled or terminated by the ceding company or the letter of credit provider.
15.    Related Party Transactions
The Company has entered into various management and services contracts with affiliated companies. The costs associated with these agreements are allocated among those companies in accordance with systematic cost allocation methods. The Company's primary related party agreements are detailed below, expenses incurred under the agreements were all quantitatively immaterial for disclosure:
Investment Management: The Company has entered into an investment advisory agreement with Voya Investment Management LLC ("VIM"), a former affiliate, under which VIM provides the Company with investment management services. For the year ended December 31, 2020, expenses were incurred in the amount $77.6.
Service Agreements: The Company has entered into an inter-insurer services agreement with its U.S. insurance company affiliates and other affiliates (collectively, the "affiliates") whereby the affiliates provide certain administrative, management, professional, advisory, consulting, and other services to each other. For the years ended December 31, 2022 and 2021 expenses were immaterial.
74

SECURITY LIFE OF DENVER INSURANCE COMPANY
Notes to Financial Statements – Statutory Basis
For the Years Ended December 31, 2022 and 2021
___________________________________________________________________________________________________________________________________________________________
(Dollar amounts in millions, except share amounts and share values)


The year ended December 31, 2020, the Company received derivative trades of $44.6 from Voya Financial, Inc. As of December 31, 2020, the Company also transferred investment securities of $53.6 and $68.6 to former affiliates Voya Retirement Insurance and Annuity Company and Roaring River, LLC ("RR"), respectively.

The Company had entered into a services agreement with VSC whereby VSC provided certain administrative, management, professional, advisory, consulting and other services to the Company. For the years ended December 31, 2021 and 2020, expenses were incurred in the amounts of $72.7 and $64.5, respectively.

Tax Sharing Agreements: See Note 8 for disclosure related to the federal tax sharing agreement.

The Company has also entered into a state tax sharing agreement with Resolution Life U.S. Holdings Inc. and each of the specific subsidiaries that are parties to the agreement. The state tax agreement applies to situations in which Resolution Life U.S. Holdings Inc. and all or some of the subsidiaries join in the filing of a state or local franchise, income tax, or other tax return on a consolidated, combined or unitary basis.
16. Accident and Health Contracts
Effective January 1, 2020, the accident and health business assumed by the Company was recaptured by RLI. Simultaneously with this recapture, effective January 1, 2020, the Company recaptured the retrocession of the block from Canada Life. The Company reports zero accident and health business on a net basis, and a de minimis amount on a gross basis.
17.    Subsequent Events
The Company has evaluated all events occurring after December 31, 2022 through April 27, 2023, the date the financial statements were available to be issued, to determine whether any event required either recognition or disclosure in the statutory basis financial statements.
As a result of the Federal Reserve's efforts to reduce inflation, continued increases in interest rates have occurred in early 2023. In recent weeks, certain regional U.S. banks have faced liquidity challenges. The Company holds immaterial investments in senior unsecured bonds issued by Credit Suisse and subordinated debt and non-redeemable preferred stock issued by First Republic Bank. The Company has no other investments in or direct exposure to banks that have publicized distress. On a book/adjusted carrying value basis, the Company's total banking sector exposure was 3.0% of total cash and invested assets as of December 31, 2022, with over 70% of that exposure concentrated in systemically important financial institutions.
There were no other material events that occurred subsequent to December 31, 2022.
75









Supplementary Information




SECURITY LIFE OF DENVER INSURANCE COMPANY
Supplemental Schedule of Selected Statutory Basis Financial Data
December 31, 2022
(In Thousands)
Investment Income Earned:
   U.S. government bonds$12,368 
   Other bonds (unaffiliated)917,406 
   Preferred stocks (unaffiliated)415 
   Common stocks (unaffiliated)5,277 
   Mortgage loans100,392 
   Contract loans74,320 
   Short-term investments2,089 
   Other invested assets106,979 
   Derivative instruments41,564 
   Aggregate write-ins for investment income1,201 
Gross investment income$1,262,011 
Mortgage Loans (Book Value):
   Commercial mortgages$2,572,018 
Mezzanine59,690 
Total mortgage loans$2,631,708 
Mortgage Loans by Standing (Book Value):
   Good standing$2,631,708 
Total mortgage loans by standing$2,631,708 
Other long-term assets (statement value)$1,003,652 
Contract loans$1,522,059 
Bonds and Stocks of Parents, Subsidiaries and Affiliates (Book Value):
Bonds$— 
Common stocks$161,373 
Total bonds and stocks of parents, subsidiaries and affiliates$161,373 






77

SECURITY LIFE OF DENVER INSURANCE COMPANY
Supplemental Schedule of Selected Statutory Basis Financial Data
December 31, 2022
(In Thousands)
Bonds and Short-term Investments by NAIC Designation and Maturity:
   Bonds and Short-term Investments by Maturity (Statement Value):
        Due within 1 year or less$529,278 
        Over 1 year through 5 years3,308,383 
        Over 5 years through 10 years4,486,159 
        Over 10 years through 20 years7,389,278 
        Over 20 years8,763,430 
   Total by maturity$24,476,528 
Bonds and Short-term Investments by NAIC Designation (Statement Value):
NAIC 1$13,267,403 
NAIC 210,333,238 
NAIC 3710,466 
NAIC 4151,904 
NAIC 58,864 
NAIC 64,654 
Total by NAIC Designation$24,476,529 
Total bonds and short-term investments publicly traded$13,004,247 
Total bonds and short-term investments privately placed$11,472,281 
Preferred stocks (statement value)$8,579 
Common stocks, including subsidiaries (market value)$246,496 
Short-term investments (book value)$35,000 
Cash equivalents$266,432 
Financial options owned (statement value)$207,437 
Financial options written and in force (statement value)$(16,807)
Financial collar, swap and forward agreements open (statement value)$8,963 
Financial futures contracts open (current value)$233 
Cash on deposit$117,710 
Life Insurance in Force:
Industrial$91,324 
Ordinary350,154,015 
Group life88,105 
Total life insurance in force$350,333,444 
Amount of accidental death insurance in force under ordinary policies$312,433 

78

SECURITY LIFE OF DENVER INSURANCE COMPANY
Supplemental Schedule of Selected Statutory Basis Financial Data
December 31, 2022
(In Thousands)
Life Insurance Policies with Disability Provisions in Force:
Ordinary$2,324,997 
Group life$— 
Supplementary Contracts in Force:
Ordinary-not involving life contingencies:
Amount on deposit$17,674 
Amount of income payable$7,664 
Ordinary-involving life contingencies:
Amount on deposit$— 
Amount of income payable$14,150 
Group-not involving life contingencies:
Amount on deposit$— 
Amount of income payable$— 
Group-involving life contingencies:
Amount on deposit$— 
Amount of income payable$— 
Annuities:
Ordinary:
Immediate-amount of income payable$50,584 
Deferred-fully paid account balance$405,131 
Deferred-not fully paid account balance$821,372 
Group:
Amount of income payable$808 
Fully paid account balance$1,792 
Not fully paid account balance$— 
Accident and Health Insurance Premiums in Force:
Ordinary$— 
Group$— 
Deposit Funds and Dividend Accumulations:
Deposit funds-account balance$1,847,496 
Dividend accumulations-account balance$73,777 



79

SECURITY LIFE OF DENVER INSURANCE COMPANY
Supplemental Schedule of Life and Health Reinsurance Disclosures
December 31, 2022
(In Thousands)
Claim payments for the years ended December 31:
Group accident and health:
2022$— 
2021$— 
2020$— 
2019$— 
2018$— 
Prior$— 
80

SECURITY LIFE OF DENVER INSURANCE COMPANY
Supplemental Schedule of Life and Health Reinsurance Disclosures
December 31, 2022
(In Thousands)
The following information regarding reinsurance contracts is presented to satisfy the disclosure requirements in SSAP No. 61R, Life, Deposit-Type and Accident and Health Reinsurance, which apply to reinsurance contracts entered into, renewed or amended on or after January 1, 1996.

Reinsurance Credit:

The Company has not identified any reinsurance contracts entered into, renewed, or amended on or after January 1, 1996 that would require disclosure in the supplemental schedule of life and health reinsurance disclosures as required under SSAP No. 61R, Life, Deposit-Type and Accident and Health Reinsurance.
81

SECURITY LIFE OF DENVER INSURANCE COMPANY
Investment Risks Interrogatories
December 31, 2022



SUPPLEMENTAL INVESTMENT RISKS INTERROGATORIES
For the year Ended December 31, 2022
(To Be Filed by April 1)

Of The SECURITY LIFE OF DENVER INSURANCE COMPANY
ADDRESS (City, State and Zop Code) Atlanta , GA 30327-4390 ...........................................................................................................................................................................................
NAIC Group Code 4992 ............................ NAIC Company Code 68713 ....................… Federal Employer's Identification Number (FEIN) 84-0499703 ........................................

The Investment Risks Interrogatories are to be filed by April 1. They are also to be included with the Audited Statutory Financial Statements.

Answer the following interrogatories by reporting the applicable U.S. dollar amounts and percentages of the reporting entity’s total admitted assets held in that category of
investments.


1.Reporting entity’s total admitted assets as reported on Page 2 of this annual statement............................................................................................................$ ........31,509,100,445


2.Ten largest exposures to a single issuer/borrower/investment.

1

Issuer
2

Description of Exposure
3

Amount
4
Percentage of Total
  Admitted Assets    
2.01FANNIE MAEMBS/CMO$270,397,082
0.9
%
2.02GS MORTGAGE BACKED SECURITIESMBS/CMO$216,790,233
0.7
%
2.03FREDDIE MACMBS/CMO$211,096,027
0.7
%
2.04Midwestern United Life Insurance
Company		COMMON STOCK$159,433,534
0.5
%
2.05CLOVER FUNDING I LLC
BONDS
$132,000,777
0.4
%
2.06JP MORGAN MORTGAGE TRUSTMBS/CMO$118,101,024
0.4
%
2.07GAM RESECURITIZATION TRUSTMBS/CMO$112,296,541
0.4
%
2.08BX TRUSTMBS/CMO$105,563,103
    0.3
%
2.09FLAGSTAR MORTGAGE TRUSTMBS/CMO$97,132,163
    0.3
%
2.10ENTERPRISE PRODUCTS OPER
BONDS
$93,590,286
    0.3
%


3.Amounts and percentages of the reporting entity’s total admitted assets held in bonds and preferred stocks by NAIC designation.

Bonds
1
2
Preferred Stocks
3
4    
3.01
NAIC 1
$
13,267,402,810
42.1
%
3.07
NAIC 1
$3,445,600
0.0
%
3.02
NAIC 2
$
    10,333,238,157
32.8
%
3.08
NAIC 2
$5,031,400
0.0
%
3.03
NAIC 3
$
    710,465,914
2.3
%
3.09
NAIC 3
$
0
0.0
%
3.04
NAIC 4
$
    151,903,807
0.5
%
3.10
NAIC 4
$102,000
0.0
%
3.05
NAIC 5
$
    8,863,612
0.0
%
3.11
NAIC 5
$
    0
0.0
%
3.06
NAIC 6
$
    4,654,075
0.0
%
3.12
NAIC 6
$
    0
0.0
%


4.Assets held in foreign investments:
4.01    Are assets held in foreign investments less than 2.5% of the reporting entity’s total admitted assets?         Yes [ ] No [ X ]
If response to 4.01 above is yes, responses are not required for interrogatories 5 - 10.

4.02
Total admitted assets held in foreign investments
$4,226,187,889
13.4
%
4.03
Foreign-currency-denominated investments
$0
    0.0
%
4.04
Insurance liabilities denominated in that same foreign currency
$0
    0.0
%























82

SECURITY LIFE OF DENVER INSURANCE COMPANY
Investment Risks Interrogatories
December 31, 2022

SUPPLEMENT FOR THE YEAR 2022 OF THE SECURITY LIFE OF DENVER INSURANCE COMPANY

5.Aggregate foreign investment exposure categorized by NAIC sovereign designation:
1
2
5.01
Countries designated NAIC-1$3,671,886,398
11.7
%
5.02
Countries designated NAIC-2$442,532,183
1.4
%
5.03
Countries designated NAIC-3 or below$111,769,308
0.4
%
6.Largest foreign investment exposures by country, categorized by the country’s NAIC sovereign designation:

1
2
Countries designated NAIC - 1:
6.01
Country 1: CAYMAN ISLANDS$1,148,686,109
3.6
%
6.02
Country 2: UNITED KINGDOM$563,724,605
1.8
%
Countries designated NAIC - 2:
6.03Country 1: MEXICO$212,386,128
0.7
%
6.04Country 2: PERU$42,775,488
0.1
%
Countries designated NAIC - 3 or below:
6.05Country 1: COLOMBIA$26,676,065
0.1
%
6.06Country 2: LIBERIA$19,200,000
0.1
%
1
2
7.Aggregate unhedged foreign currency exposure$16,636,521
0.1
%
8.Largest foreign investment exposures by country, categorized by the country’s NAIC sovereign designation:

1
2
8.01
Countries designated NAIC-1$16,636,521
0.1
%
8.02
Countries designated NAIC-2$0
0.0
%
8.03
Countries designated NAIC-3 or below$0
0.0
%

9.Largest unhedged foreign currency exposures by country, categorized by the country’s NAIC sovereign designation:

1
2
Countries designated NAIC - 1:
9.01
Country 1: UNITED KINGDOM$11,878,130
0.0
%
9.02
Country 2: LUXEMBOURG$4,758,391
0.0
%
Countries designated NAIC - 2:
9.03Country 1:$0
0.0
%
9.04Country 2:$0
0.0
%
Countries designated NAIC - 3 or below:
9.05Country 1:$0
0.0
%
9.06Country 2:$0
0.0
%

10.Ten largest non-sovereign (i.e. non-governmental) foreign issues:

1
Issuer
2
NAIC Designation
3

4
    
10.01PALMER SQUARE CLO LTD1$57,261,758
0.2
%
10.02NSW ELECTRICITY2$56,264,931
0.2
%
10.03BENEFIT STREET PARTNERS CLO LT1$53,425,113
0.2
%
10.04VODAFONE GROUP PLC2$50,139,266
0.2
%
10.05HAFSLUND E-CO AS
1
$48,885,930
0.2
%
10.06MITSUBISHI UFJ FIN GRP1$45,687,325
0.1
%
10.07HSBC HOLDINGS PLC2$45,284,587
0.1
%
10.08SHELL INTERNATIONAL FIN1$43,923,372
0.1
%
10.09XLIT LTD1$42,538,844
0.1
%
10.10NSW PORTS
2
$42,446,774
0.1
%
83

SECURITY LIFE OF DENVER INSURANCE COMPANY
Investment Risks Interrogatories
December 31, 2022

SUPPLEMENT FOR THE YEAR 2022 OF THE SECURITY LIFE OF DENVER INSURANCE COMPANY

11.Amounts and percentages of the reporting entity’s total admitted assets held in Canadian investments and unhedged Canadian currency exposure:
11.01    Are assets held in Canadian investments less than 2.5% of the reporting entity’s total admitted assets?         Yes [ X ] No [ ]
If response to 11.01 is yes, detail is not required for the remainder of interrogatory 11.
1
2
11.02
Total admitted assets held in Canadian investments$0
0.0
%
11.03
Canadian-currency-denominated investments$0
0.0
%
11.04
Canadian-denominated insurance liabilities$0
0.0
%
11.05Unhedged Canadian currency exposure$0
0.0
%

12.Report aggregate amounts and percentages of the reporting entity’s total admitted assets held in investments with contractual sales restrictions:

12.01    Are assets held in investments with contractual sales restrictions less than 2.5% of the reporting entity’s total admitted assets?          Yes [ X ] No [ ]
If response to 12.01 is yes, detail is not required for the remainder of interrogatory 12.

1
2
3
12.02
Aggregate statement value of investments with contractual sales restrictions$0
0.0
%
Largest three investments with contractual sales restrictions:
12.03
$0
0.0
%
12.04
$0
0.0
%
12.05$0
0.0
%

13.Amounts and percentages of admitted assets held in the ten largest equity interests:

13.01    Are assets held in equity interests less than 2.5% of the reporting entity’s total admitted assets?          Yes [ ] No [ X ]
If response to 13.01 is yes, detail is not required for the remainder of interrogatory 13.

1
Issuer
2
3
13.02
Midwestern United Life Insurance Company$159,433,534
0.5
%
13.03FEDERAL HOME LOAN BANK$75,885,700
0.2
%
13.04
VERITAS CAPITAL FUND$33,500,509
0.1
%
13.05
INSIGHT VENTURE PTNRS$28,291,132
0.1
%
13.06VISTA EQUITY PARTNERS$27,093,368
0.1
%
13.07GREEN EQUITY INVESTORS$25,427,449
0.1
%
13.08Crescent Direct Lending Fund$24,789,521
0.1
%
13.09POMONA CAP$24,668,334
0.1
%
13.10BERKSHIRE FUND$23,720,202
0.1
%
13.11BROOKFIELD INFRASTRUCTURE$21,477,970
0.1
%
84

SECURITY LIFE OF DENVER INSURANCE COMPANY
Investment Risks Interrogatories
December 31, 2022
SUPPLEMENT FOR THE YEAR 2022 OF THE SECURITY LIFE OF DENVER INSURANCE COMPANY

14.Amounts and percentages of the reporting entity’s total admitted assets held in nonaffiliated, privately placed equities:
14.01    Are assets held in nonaffiliated, privately placed equities less than 2.5% of the reporting entity’s total admitted assets?         Yes [ ] No [ X ]
If response to 14.01 is yes, responses are not required for 14.02 through 14.05.

1
2
3
14.02
Aggregate statement value of investments held in nonaffiliated, privately placed equities$991,090,411
3.1
%
Largest three investments with contractual sales restrictions:
14.03
FEDERAL HOME LOAN BANK$75,885,700
0.2
%
14.04
VERITAS CAPITAL FUND$33,500,509
0.1
%
14.05INSIGHT VENTURE PTNRS$28,291,132
0.1
%

Ten largest fund managers:
1
Fund Manager		2
Total Invested		3
Diversified		4
Nondiversified
14.06
$0$0$0
14.07$0$0$0
14.08
$0$0$0
14.09
$0$0$0
14.10$0$0$0
14.11$0$0$0
14.12$0$0$0
14.13$0$0$0
14.14$0$0$0
14.15$0$0$0


15.Amounts and percentages of the reporting entity’s total admitted assets held in general partnership interests:
15.01    Are assets held in general partnership interests less than 2.5% of the reporting entity’s total admitted assets?         Yes [ ] No [ X ]
If response to 15.01 is yes, responses are not required for the remainder of Interrogatory 15.
1
2
3
15.02
Aggregate statement value of investments held in general partnership interests$902,522,733
2.9
%
Largest three investments in general partnership interests:
15.03
VERITAS CAPITAL FUND VI LP$33,500,509
0.1
%
15.04
INSIGHT VENTURE PTNRS X LP$28,291,132
0.1
%
15.05VISTA EQUITY PARTNERS FUND VI$27,093,368
0.1
%
85

SECURITY LIFE OF DENVER INSURANCE COMPANY
Investment Risks Interrogatories
December 31, 2022
SUPPLEMENT FOR THE YEAR 2022 OF THE SECURITY LIFE OF DENVER INSURANCE COMPANY

16.Amounts and percentages of the reporting entity's total admitted assets held in mortgage loans:
16.01    Are mortgage loans reported in Schedule B less than 2.5% of the reporting entity’s total admitted assets?         Yes [ ] No [ X ]
If response to 16.01 above is yes, responses are not required for the remainder of Interrogatory 16 and Interrogatory 17.

1
Type (Residential, Commercial, Agricultural)
2
3
16.02
Commercial$69,364,172
0.2
%
16.03Commercial$54,590,857
0.2
%
16.04
Commercial$40,780,571
0.1
%
16.05
Commercial$39,921,502
0.1
%
16.06Commercial$35,966,069
0.1
%
16.07Commercial$30,000,000
0.1
%
16.08Commercial$29,829,907
0.1
%
16.09Commercial$29,578,135
0.1
%
16.10Commercial$25,800,671
0.1
%
16.11Commercial$25,639,547
0.1
%

Amount and percentage of the reporting entity's total admitted assets held in the following categories of mortgage loans:
Loans
16.12
Construction loans$0
0.0
%
16.13Mortgage loans over 90 days past due$0
0.0
%
16.14
Mortgage loans in the process of foreclosure$0
0.0
%
16.15
Mortgage loans foreclosed$0
0.0
%
16.16Restructured mortgage loans$0
0.0
%

17.Aggregate mortgage loans having the following loan-to-value ratios as determined from the most current appraisal as of the annual statement date:

ResidentialCommercialAgricultural
Loan to Value
1
2
3
4
5
6
17.01
above 95%$0
0.0
%$0
0.0
%$0
0.0
%
17.0291 to 95%$0
0.0
%$0
0.0
%$0
0.0
%
17.03
81 to 90%$0
0.0
%$0
0.0
%$0
0.0
%
17.04
71 to 80%$0
0.0
%$0
0.0
%$0
0.0
%
17.05below 70%$0
0.0
%$2,572,017,880
8.2
%$0
0.0
%

18.Amounts and percentages of the reporting entity’s total admitted assets held in each of the five largest investments in real estate:

18.01    Are assets held in real estate reported less than 2.5% of the reporting entity’s total admitted assets?          Yes [ X ] No [ ]
If response to 18.01 above is yes, responses are not required for the remainder of Interrogatory 18.
Largest five investments in any one parcel or group of contiguous parcels of real estate.
Description
1
2
3
18.02
$0
0.0
%
18.03$0
0.0
%
18.04
$0
0.0
%
18.05
$0
0.0
%
18.06$0
0.0
%

19.Report aggregate amounts and percentages of the reporting entity’s total admitted assets held in investments held in mezzanine real estate loans:

19.01    Are assets held in investments held in mezzanine real estate loans less than 2.5% of the reporting entity’s total admitted assets?          Yes [ X ] No [ ]
If response to 19.01 is yes, responses are not required for the remainder of Interrogatory 19.
1
2
3
19.02
Aggregate statement value of investments held in mezzanine real estate loans:$0
0.0
%
Largest three investments held in mezzanine real estate loans:
19.03
$0
0.0
%
19.04
$0
0.0
%
19.05$0
0.0
%
86

SECURITY LIFE OF DENVER INSURANCE COMPANY
Investment Risks Interrogatories
December 31, 2022
SUPPLEMENT FOR THE YEAR 2022 OF THE SECURITY LIFE OF DENVER INSURANCE COMPANY

20.Amounts and percentages of the reporting entity’s total admitted assets subject to the following types of agreements:

At Year EndAt End of Each Quarter
1
2
1st Quarter
3		2nd Quarter
4		3rd Quarter
5
20.01
Securities lending agreements (do not include
 assets held as collateral for such transactions)$0
0.0
%$0$
0
$
0
20.02Repurchase agreements$0
0.0
%$0$
0
$
0
20.03
Reverse repurchase agreements$0
0.0
%$0$
0
$
0
20.04
Dollar repurchase agreements$0
0.0
%$0$
0
$
0
20.05Dollar reverse repurchase agreements$0
0.0
%$0$
0
$
0

21.Amounts and percentages of the reporting entity's total admitted assets for warrants not attached to other financial instruments, options, caps, and floors:

OwnedWritten
1
2
34
21.01
Hedging
21.02Income generation$0
0.0
%$0$
0
%
21.03Other$0
0.0
%$0$
0
%

22.Amounts and percentages of the reporting entity's total admitted assets of potential exposure for collars, swaps, and forwards:

At Year EndAt End of Each Quarter
1
2
1st Quarter
3		2nd Quarter
4		3rd Quarter
5
22.01Hedging$1,677,051
0.0
%$1,875,334$
1,809,688
$1,749,748
22.02
Income generation$0
0.0
%$0$
0
$
0
22.03
Replications$148,500,000
0.5
%$0$
1,672,911
$148,500,000
22.04Other$0
0.0
%$0$
0
$
0

23.Amounts and percentages of the reporting entity's total admitted assets of potential exposure for futures contracts:

At Year EndAt End of Each Quarter
1
2
1st Quarter
3		2nd Quarter
4		3rd Quarter
5
23.01Hedging$0
0.0
%$2,066,170$
3,121,144
$
0
23.02
Income generation$0
0.0
%$0$
0
$
0
23.03
Replications$0
0.5
%$0$
0
$
0
23.04Other$2,777,853
0.0
%$0$
0
$
3,071,742

87

SECURITY LIFE OF DENVER INSURANCE COMPANY
Summary Investment Schedule
December 31, 2022
(In Thousands)

Gross Investment Holdings*Admitted Assets as Reported in the Annual Statement
Investment CategoriesAmountPercentage of TotalAmountSecurities Lending Reinvested Collateral AmountTotal AmountPercentage of Total
Long-Term Bonds:
U.S. Governments$1,512,996 5.0 %$1,512,996 $— $1,512,996 5.0 %
All Other Governments268,319 0.9 268,319 — 268,319 0.9 
U.S. States, Territories and Possessions, etc. Guaranteed43,483 0.1 43,483 — 43,483 0.1 
U.S. Political Subdivisions of States, Territories, and Possessions, Guaranteed60,512 0.2 60,512 — 60,512 0.2 
U.S. Special Revenue & Special Assessment Obligations, etc. Non-Guaranteed1,428,736 4.7 1,428,736 — 1,428,736 4.7 
Industrial and Miscellaneous20,072,557 65.7 20,072,557 — 20,072,557 65.7 
Hybrid Securities461,709 1.5 461,709 — 461,709 1.5 
Unaffiliated Bank loans628,216 2.1 628,216 — 628,216 2.1 
Total Long-Term Bonds$24,476,528 80.2 %$24,476,528 $— $24,476,528 80.2 %
Preferred Stocks:
Industrial and Miscellaneous (Unaffiliated)$8,579 0.0 %$8,579 $— $8,579 0.0 %
Total Preferred Stocks$8,579 0.0 %$8,579 $— $8,579 0.0 %
Common Stocks:
Industrial and miscellaneous (Unaffiliated)
 Other 		85,122 0.3 85,122 — 85,122 0.3 
Parent, Subsidiaries and Affiliates Other161,373 0.5 161,373 — 161,373 0.5 
Total Common Stocks$246,495 0.8 %$246,495 $— $246,495 0.8 %
Mortgage Loans:
Commercial Mortgages2,572,018 8.4 2,572,018 — 2,572,018 8.4 
Total Mortgage Loans$2,631,708 8.6 %$2,631,708 $— $2,631,708 8.6 %
Cash, Cash Equivalents and Short-Term Investments:
Cash$117,710 0.4 %$117,710 $— $117,710 0.4 %
Cash Equivalents266,432 0.9 266,432 — 266,432 0.9 
Short-Term Investments35,000 0.1 35,000 — 35,000 0.1 
Total Cash, Cash Equivalents and Short-Term Investments$419,142 1.4 %$419,142 $— $419,142 1.4 %
Contract Loans1,523,587 5.1 1,522,059 — 1,522,059 5.1 
Derivatives217,376 0.7 217,376 — 217,376 0.7 
Other Invested Assets1,003,652 3.3 1,003,652 — 1,003,652 3.3 
Receivables for Securities26,354 0.1 26,354 — 26,354 0.1 
Write-ins for Invested Assets10,015 0.0 10,015 — 10,015 0.0 
Total Invested Assets$30,563,438 100.0 %$30,561,909 $— $30,561,909 100.0 %


88
* Excluding separate accounts