sb59120-485b.htm

Statement of Additional Information

T. ROWE PRICE NO-LOAD VARIABLE ANNUITY

STATEMENT OF ADDITIONAL INFORMATION

Date: May 1, 2014

Individual Flexible Premium Deferred Variable Annuity Contract

Issued By:	Mailing Address:
First Security Benefit Life Insurance and Annuity Company of New York 800 Westchester Avenue, Suite 641N. Rye Brook, New York 10573 1-800-355-4570	First Security Benefit Life Insurance and Annuity Company of New York P.O. Box 750497 Topeka, Kansas 66675-0497 1-800-239-4703

This Statement of Additional Information is not a prospectus and should be read in conjunction with the current Prospectus for the T. Rowe Price Variable Annuity dated May 1, 2014. A copy of the Prospectus may be obtained from the Company’s Administrative Office by calling 1-800-239-4703 or by writing P.O. Box 750497, Topeka, Kansas 66675-0497.

K15-042

Statement of Additional Information

CONTENTS

General Information and History	3
Distribution of the Contract	3
Limits on Premiums Paid Under Tax-Qualified Retirement Plans	3
Administrative Services Arrangements	4
Performance Information	4
Independent Registered Public Accounting Firm	5
Financial Statements	5

Statement of Additional Information

GENERAL INFORMATION AND HISTORY

For a description of the Individual Flexible Premium Deferred Variable Annuity Contract (the “Contract”), First Security Benefit Life Insurance and Annuity Company of New York (the “Company”), and the T. Rowe Price Variable Annuity Account of First Security Benefit Life Insurance and Annuity Company of New York (the “Separate Account”), see the Prospectus. This Statement of Additional Information contains information that supplements the information in the Prospectus. Defined terms used in this Statement of Additional Information have the same meaning as terms defined in the section entitled “Definitions” in the Prospectus.

Safekeeping of Assets

The Company is responsible for the safekeeping of the assets of the Subaccounts. These assets, which consist of shares of the Portfolios of the Funds in non-certificated form, are held separate and apart from the assets of the Company’s General Account and its other separate accounts.

DISTRIBUTION OF THE CONTRACT

T. Rowe Price Investment Services, Inc. (“Investment Services”), a Maryland corporation formed in 1980 as a wholly-owned subsidiary of T. Rowe Price Associates, Inc., is Principal Underwriter of the Contract. Investment Services is registered as a broker/dealer with the Securities and Exchange Commission (“SEC”) under the Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority (FINRA), formerly known as NASD, Inc.

Investment Services serves as Principal Underwriter under a Distribution Agreement with the Company. Investment Services’ registered representatives are required to be authorized under applicable state regulations to make the Contract available to its customers. Investment Services is not compensated under its Distribution Agreement with the Company. Investment Services, or an affiliate thereof, however, may receive compensation for the administrative services it provides to the Company under other agreements.

LIMITS ON PREMIUMS PAID UNDER TAX-QUALIFIED RETIREMENT PLANS

Section 408 and 408A

Premiums (other than rollover contributions) paid under a Contract used in connection with a traditional or Roth individual retirement annuity (IRA) that is described in Section 408 or Section 408A of the Internal Revenue Code are subject to the limits on contributions to IRAs under Section 219(b) of the Internal Revenue Code. Under Section 219(b) of the Code, contributions (other than rollover contributions) to an IRA are limited to the lesser of (i) $5,500 (for 2014) or (ii) 100% of the individual’s taxable compensation. If an individual is age 50 or over, the individual may make an additional catch up contribution to a traditional IRA of $1,000 each tax year.

Spousal IRAs allow an Owner and his or her spouse to each contribute up to the applicable dollar amount to their respective IRAs so long as a joint tax return is filed and joint income is $6,000 or more. The maximum amount the higher compensated spouse may contribute for the year is the lesser of (i) $5,500 (for 2014) or (ii) 100% of that spouse’s compensation. The maximum the lower compensated spouse may contribute is the lesser of (i) $5,500 (for 2014) or (ii) 100% of that spouse’s compensation plus the amount by which the higher compensated spouse’s compensation exceeds the amount the higher compensated spouse contributes to his or her IRA. The extent to which an Owner may deduct contributions to a traditional IRA depends on the gross income of the Owner and his or her spouse for the year and whether either is an “active participant” in an employer-sponsored retirement plan.

Statement of Additional Information

Premiums under a Contract used in connection with a simplified employee pension plan described in Section 408 of the Internal Revenue Code are subject to limits under Section 402(h) of the Internal Revenue Code. Section 402(h) currently limits employer contributions and salary reduction contributions (if permitted) under a simplified employee pension plan to the lesser of (a) 25% of the compensation of the participant in the Plan, or (b) $52,000 (for 2014). Salary reduction contributions, if any, are subject to additional annual limits.

ADMINISTRATIVE SERVICES ARRANGEMENTS

The Company has entered into an administrative services agreement with its affiliate, Security Benefit Life Insurance Company (“SBL”). Pursuant to this agreement, SBL provides management and administrative services for the Separate Account and the Contracts, including underwriting, claims, and actuarial services. The Company reimburses SBL for the services and facilities it provides to the Company. For the years ended December 31, 2013, 2012, and 2011, the Company paid $500,216, $190,798, and $109,747 , respectively, under the agreement.

PERFORMANCE INFORMATION

Performance information for the Subaccounts of the Separate Account, including the yield and effective yield of the Prime Reserve Subaccount, and the average annual total return and total return of all Subaccounts, may appear in advertisements, reports, and promotional literature provided to current or prospective Owners.

Quotations of yield for the Prime Reserve Subaccount will be based on the change in the value, exclusive of capital changes and income other than investment income, of a hypothetical investment in a Contract over a particular seven day period, less a hypothetical charge reflecting deductions from the Contract during the period (the “base period”) and stated as a percentage of the investment at the start of the base period (the “base period return”). The base period return is then annualized based upon the formula shown below , with the resulting yield figure carried to at least the nearest one hundredth of one percent. Any quotations of effective yield for the Prime Reserve Subaccount assume that all dividends received during an annual period have been reinvested. Calculation of “effective yield” begins with the same “base period return” used in the yield calculation, which is then annualized to reflect weekly compounding pursuant to the following formula:

Effective Yield = [(Base Period Return + 1)365/7] – 1

Quotations of average annual total return for any Subaccount will be expressed in terms of the average annual compounded rate of return of a hypothetical investment in a Contract over a period of one, five and ten years (or, if less, up to the life of the Subaccount), calculated pursuant to the following formula: P(1 + T)n = ERV (where P = a hypothetical initial payment of $1,000, T = the average annual total return, n = the number of years, and ERV = the ending redeemable value of a hypothetical $1,000 payment made at the beginning of the period). All total return figures reflect the deduction of the mortality and expense risk charge. Quotations of total return may simultaneously be shown for other periods.

Where the Portfolio in which a Subaccount invests was established prior to inception of the Subaccount, quotations of total return may include quotations for periods beginning prior to the Subaccount’s date of inception. Such quotations of total return are based upon the performance of the Subaccount’s corresponding Portfolio adjusted to reflect deduction of the mortality and expense risk charge. Any quotation of performance that pre-dates the date of inception of the Separate Account (or a Subaccount thereof as applicable) will be accompanied by total return figures that reflect the deduction of the mortality and expense risk charge since the date of inception of the Separate Account or Subaccount.

Statement of Additional Information

Performance information for any Subaccount reflects only the performance of a hypothetical Contract under which an Owner’s Account Value is allocated to a Subaccount during a particular time period on which the calculations are based. Performance information should be considered in light of the investment objectives and policies, characteristics, and quality of the Portfolio of the Funds in which the Subaccount invests, and the market conditions during the given time period, and should not be considered as a representation of what may be achieved in the future.

Reports and promotional literature may also contain other information including (i) the ranking of any Subaccount derived from rankings of variable annuity separate accounts, insurance product funds, or other investment products tracked by Lipper Analytical Services, Inc., Morningstar, Inc. or by other rating services, companies, publications, or other persons who rank separate accounts or other investment products on overall performance or other criteria, (ii) the effect of a tax-deferred compounding on a Subaccount’s investment returns, or returns in general, which may be illustrated by graphs, charts, or otherwise, and which may include a comparison, at various points in time, of the return from an investment in a Contract (or returns in general) on a tax-deferred basis (assuming one or more tax rates) with the return on a taxable basis, and (iii) personal or general hypothetical illustrations of accumulation and payout period Account Values and annuity payments. From time to time information may be provided in advertising, sales literature and other written material regarding the appropriateness of the various annuity options as well as their advantages and disadvantages to contractholders and prospective investors.

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The financial statements of First Security Benefit Life Insurance and Annuity Company of New York at December 31, 2013 and 2012, and for each of the three years in the period ended December 31, 2013, and the financial statements of T. Rowe Price Variable Annuity of First Security Benefit Life Insurance and Annuity Company of New York at December 31, 2013, and for each of the specified periods ended December 31, 2013 and 2012, appearing in this Statement of Additional Information have been audited by Ernst & Young LLP, 1200 Main Street, Suite 2500, Kansas City, Missouri 64105-2143, independent registered public accounting firm, as set forth in their reports thereon appearing elsewhere herein and are included in reliance upon such reports given on the authority of such firm as experts in accounting and auditing.

FINANCIAL STATEMENTS

The financial statements of the Company, which are included in this Statement of Additional Information, should be considered only as bearing on the ability of the Company to meet its obligations under the Contract. They should not be considered as bearing on the investment performance of the assets held in the Separate Account.

FINANCIAL STATEMENTS

First Security Benefit Life Insurance and Annuity

Company of New York (An Indirect Wholly Owned

Subsidiary of Guggenheim SBC Holdings, LLC)

Years Ended December 31, 2013, 2012, and 2011 With Report of Independent Auditors

Ernst & Young LLP

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Financial Statements

Years Ended December 31, 2013, 2012, and 2011

Contents

Report of Independent Auditors	1

Financial Statements

Balance Sheets	3
Statements of Operations	5
Statements of Comprehensive Income	6
Statements of Changes in Stockholder’s Equity	7
Statements of Cash Flows	8
Notes to Financial Statements	9

Ernst & Young LLP

One Kansas City Place

Suite 2500

1200 Main Street

Kansas City, MO 64105-2143

Tel: +1 816 474 5200

Fax: +1 816 480 5369

ey.com

Report of Independent Auditors

The Board of Directors

First Security Benefit Life Insurance

and Annuity Company of New York

We have audited the accompanying financial statements of First Security Benefit Life Insurance and Annuity Company of New York (the Company), an indirect wholly owned subsidiary of Guggenheim SBC Holdings, LLC, which comprise the balance sheets as of December 31, 2013 and 2012, and the related statements of operations, comprehensive income, changes in stockholder’s equity and cash flows for the years ended December 31, 2013, 2012, and 2011, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in conformity with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error.

Auditor’s Responsibility

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

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

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

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of First Security Benefit Life Insurance and Annuity Company of New York at December 31, 2013 and 2012, and the results of its operations and its cash flows for the years ended December 31, 2013, 2012, and 2011 in conformity with U.S. generally accepted accounting principles.

Change in Method of Accounting for Deferred Policy Acquisition Costs

As discussed in Note 1 to the financial statements, effective January 1, 2012, and prospectively applied, the Company changed its method of accounting for deferred policy acquisition costs.

April 4, 2014

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Balance Sheets

	December 31
	2013		2012
	(In Thousands, Except Share Amounts)
Assets
Investments:
Securities available for sale:
Bonds	$	143,106	$	10,734
Equities		3,362		—
Securities fair value option:
Bonds		144,714		97,526
Equities		1,756		780
Policy loans		99		68
Short-term investments		630		—
Cash and cash equivalents		162,790		137,368
Total investments		456,457		246,476

Accrued investment income		2,035		899
Income taxes receivable		1,026		498
Deferred income tax asset		2,629		737
Due from affiliates		157		1,584
Reinsurance recoverable		155,613		153,615
Reinsurance derivative asset		4,592		—
Deferred policy acquisition costs		10,205		3,086
Deferred sales inducement costs		34		—
Value of business acquired		3,656		4,346
Intangible assets		50		50
Other assets		141		114
Separate account assets		146,255		136,033
Total assets	$	782,850	$	547,438

	December 31
	2013			2012
	(In Thousands,
	Except Share Amounts)
Liabilities and stockholder’s equity
Liabilities:
Policy reserves and annuity account values	$	440,689		$	236,817
Funds withheld		157,082			154,059
Reinsurance derivative liability		—			4,182
Other liabilities		3,518			2,432
Separate account liabilities		146,255			136,033
Total liabilities		747,544			533,523

Stockholder’s equity:
Common stock ($10 par value; 200,000 non-convertible shares authorized, issued, and outstanding)		2,000			2,000
Additional paid-in capital		34,547			9,547
Accumulated other comprehensive (loss) income		(3,106	)		139
Retained earnings		1,865			2,229
Total stockholder’s equity		35,306			13,915

Total liabilities and stockholder’s equity	$	782,850		$	547,438

See accompanying notes.

First Security Benefit Life Insurance and Annuity Company of New York
(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Statements of Operations


	Year Ended December 31
	2013			2012			2011
	(In Thousands)
Revenues:
Asset-based fees	$	2,625		$	2,726		$	3,262
Net investment income		3,701			444			356
Net realized/unrealized (losses) gains		(524	)		18			—
Other revenues		78			67			—
Total revenues		5,880			3,255			3,618

Benefits and expenses:
Interest credited to annuity account balances		3,353			592			446
Other benefits		169			38			69
Total benefits		3,522			630			515

Commissions and other operating expenses		2,137			1,119			1,089
Amortization of deferred policy acquisition costs, deferred sales inducement costs, and value of business acquired		876			722			827
Total benefits and expenses		6,535			2,471			2,431

(Loss) income before income tax (benefit) expense		(655	)		784			1,187
Income tax (benefit) expense		(291	)		(227	)		359
Net (loss) income	$	(364	)	$	1,011		$	828

See accompanying notes.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Statements of Comprehensive Income


	Year Ended December 31
	2013			2012			2011
	(In Thousands)

Net (loss) income	$	(364	)	$	1,011		$	828
Other comprehensive (loss) income, net of income tax
Net unrealized and realized (losses) gains on available-for-sale securities		(3,352	)		95			196
Net effect of unrealized gains (losses) on:
Deferred policy acquisition costs and value of business acquired		126			(85	)		(48	)
Policy reserves and annuity account values		(19	)		14			—
Other comprehensive (loss) income		(3,245	)		24			148
Comprehensive (loss) income	$	(3,609	)	$	1,035		$	976

See accompanying notes.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Statements of Changes in Stockholder’s Equity

	Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total Stockholder’s Equity
	(In Thousands)
Balance at January 1, 2011	$	2,000	$	9,547	$	(33	)	$	390		$	11,904
Net income		—		—		—			828			828
Other comprehensive income		—		—		148			—			148
Balance at December 31, 2011		2,000		9,547		115			1,218			12,880
Net income		—		—		—			1,011			1,011
Other comprehensive income		—		—		24			—			24
Balance at December 31, 2012		2,000		9,547		139			2,229			13,915
Capital contribution from parent		—		25,000		—			—			25,000
Net loss		—		—		—			(364	)		(364	)
Other comprehensive loss		—		—		(3,245	)		—			(3,245	)
Balance at December 31, 2013	$	2,000	$	34,547	$	(3,106	)	$	1,865		$	35,306

See accompanying notes.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Statements of Cash Flows


	Year Ended December 31
	2013			2012			2011
	(In Thousands)
Operating activities
Net (loss) income	$	(364	)	$	1,011		$	828
Adjustments to reconcile net (loss) income to net cash and cash equivalents (used in) provided by operating activities:
Interest credited to annuity account balances		3,353			592			446
Policy acquisition costs deferred		(7,092	)		(2,983	)		(137	)
Sales inducement costs deferred		(33	)		—			—
Amortization of deferred policy acquisition costs, deferred sales inducements, and value of business acquired		876			722			827
Amortization of investment premiums and discounts		(1,324	)		(19	)		—
Deferred income taxes		237			(817	)		392
Net purchases of securities, fair value option		(56,469	)		(91,983	)		—
Net realized/unrealized losses (gains)		471			(1,128	)		—
Other changes in operating assets and liabilities		729			(750	)		47
Funds withheld		2,941			153,986			—
Net cash and cash equivalents (used in) provided by operating activities		(56,675	)		58,631			2,403

Investing activities
Sales, maturities, or repayments of investments:
Bonds available for sale		56,511			8,934			2,949
Equity securities available for sale		2,053			—			—
		58,564			8,934			2,949
Acquisitions of investments:
Bonds available for sale		(194,276	)		(1,499	)		(9,151	)
Equity securities available for sale		(5,681	)		—			—
		(199,957	)		(1,499	)		(9,151	)
Net purchase of short-term investments		(626	)		—			—
Net (increase) decrease in policy loans		(31	)		22			35
Net cash and cash equivalents (used in) provided by investing activities		(142,050	)		7,457			(6,167	)

Financing activities
Deposits to annuity account balances		204,854			69,242			2,099
Withdrawals from annuity account balances		(5,707	)		(1,082	)		(1,776	)
Capital contribution from parent		25,000			—			—
Net cash and cash equivalents provided by financing activities		224,147			68,160			323

Increase (decrease) in cash and cash equivalents		25,422			134,248			(3,441	)
Cash and cash equivalents at beginning of year		137,368			3,120			6,561
Cash and cash equivalents at end of year	$	162,790		$	137,368		$	3,120

Supplemental disclosures of cash flow information
Cash paid during the year for:
Income taxes	$	—		$	883		$	31

Supplemental disclosures of non-cash information

For the years ended December 31, 2013 and 2012, the Company recognized a change in the reinsurance derivative asset and liability of $(9,257) and $4,971, respectively, which is equal to the change in the unrealized gains or losses on the segregated assets supporting the funds withheld liability and the change in the embedded derivative in the coinsurance agreement with Security Benefit Life Insurance Company. (See Notes 3 and 11).

See accompanying notes.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements

December 31, 2013

1. Nature of Operations and Significant Accounting Policies

Organization and Operations

First Security Benefit Life Insurance and Annuity Company of New York (the Company) is licensed to transact life insurance business in New York and Kansas and was organized to offer insurance products in New York. The Company’s business activities are concentrated in the sale of fixed annuity products and variable annuity products supported by separate account assets. The Company is a wholly owned subsidiary of Security Benefit Corporation (SBC), which is a wholly owned subsidiary of Guggenheim SBC Holdings, LLC (GSBCH).

Use of Estimates

The preparation of financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect amounts reported and disclosed. For example, significant estimates and assumptions are used in the valuation of investments; amortization of deferred policy acquisition costs, deferred sales inducement costs, and the value of business acquired; calculation of liabilities for future policy benefits; and the calculation of income taxes and the recognition of deferred income tax assets and liabilities. Management believes that the estimates used in preparing its financial statements are reasonable and prudent. However, actual results could differ from those estimates.

Recently Adopted Accounting Pronouncements

On January 1, 2012, the Company adopted on a prospective basis Accounting Standards Update (ASU) 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. ASU 2010-26 clarifies the types of costs incurred by an insurance entity that can be capitalized in the acquisition of insurance contracts. Only those costs incurred which result directly from and are essential to the successful acquisition of new or renewal insurance contracts may be capitalized. Incremental costs related to unsuccessful attempts to acquire insurance contracts must be expensed as incurred. The required disclosures are provided in Note 4.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

1. Nature of Operations and Significant Accounting Policies (continued)

On January 1, 2012, the Company adopted ASU 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, authoritative guidance that clarifies and changes fair value measurement and disclosure requirements. This guidance expands existing disclosure requirements for fair value measurements and includes other amendments but does not require additional fair value measurements. The required disclosures are provided in Note 10.

In 2012, the Company adopted ASU 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income, authoritative guidance that changes the presentation of comprehensive income in the financial statements. The new guidance eliminates the presentation options contained in current guidance and instead requires entities to report components of comprehensive income in either a continuous statement of comprehensive income or two separate but consecutive statements that show the components of net income and other comprehensive income, including adjustments for items that are reclassified from other comprehensive income to net income. The guidance does not change the items that must be reported in other comprehensive income, or when an item of other comprehensive income must be reclassified to net income. The Company adopted this guidance through two separate but consecutive statements in the financial statements.

In 2012, the Company adopted ASU 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassification of Items Out of Accumulated Other Comprehensive Income in ASU No. 2011-05, authoritative guidance to defer certain provisions included in ASU 2011-05. This guidance defers only those changes in ASU 2011-05 that relate to the presentation of reclassification adjustments to allow the Financial Accounting Standards Board (FASB) time to redeliberate whether to present on the face of the financial statements the effects of reclassification out of accumulated other comprehensive income (AOCI) for all periods presented. The adoption of ASU 2011-12 did not have a material impact on the financial statements.

In 2013, the Company adopted ASU 2012-02, Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment, authoritative guidance which provides an entity the option to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. The adoption of ASU 2012-02 did not have a material impact on the financial statements.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

1. Nature of Operations and Significant Accounting Policies (continued)

In 2013, the Company adopted ASU 2013-2, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, authoritative guidance which requires entities to disclose additional information about items reclassified out of AOCI. Entities are required to disclose information regarding changes in AOCI balances by component and significant items reclassified out of AOCI by component either on the face of the income statement or as a separate footnote to the financial statements. The adoption of ASU 2013-2 did not have a material impact on the financial statements.

Investments

Bonds classified as available for sale are carried at fair value, with related unrealized gains and losses reflected as a component of accumulated other comprehensive income or loss in the statement of comprehensive income, with the corresponding adjustments related to deferred policy acquisition costs, policy reserves, and annuity account values and net of applicable income taxes. The adjustment related to deferred policy acquisition costs and policy reserves and annuity account values represents the impact from using a discount rate that would have been required if such unrealized gains or losses had been realized. Premiums and discounts are amortized using the effective interest rate method applied over the estimated lives of the assets adjusted for prepayment activity. If it is determined that a decline in the fair value is other than temporary, unrealized losses are bifurcated between credit- and non-credit-related impairments. Credit-related impairments are recognized in earnings, while non-credit-related impairments are reported as a component of AOCI. The Company has elected to utilize the fair value option for certain financial instruments segregated to support the funds withheld liability.

Equity securities include common stocks and non-redeemable preferred stocks. Equity securities are classified as available for sale and are carried at fair value, with related unrealized gains and losses reflected as a component of other comprehensive income or loss, net of applicable income taxes. The cost of equity securities is adjusted for declines in value that are deemed to be other than temporary, with such impairments reported in the statements of operations as a component of net realized/unrealized gains (losses).

Realized capital gains and losses on sales of investments are determined using the average cost method. In addition, unrealized capital gains and losses related to the fair value option securities are reported as a component of net realized/unrealized gains (losses) in the statement of operations.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

1. Nature of Operations and Significant Accounting Policies (continued)

Policy loans are reported at unpaid principal.

Cash and cash equivalents includes operating cash, other investments with original maturities of 90 days or less, and money market funds principally supported with cash and cash equivalent funds. Short-term investments are carried at market value and represent fixed maturity securities with initial maturities of greater than 90 days but less than one year.

Derivatives

The Company has entered into a coinsurance with funds withheld arrangement containing an embedded derivative whose fair value is based on the change in the fair value of the underlying segregated assets. The embedded derivative within the coinsurance funds withheld arrangement is included in the reinsurance derivative asset/liability on the balance sheets.

The Company issues certain products that contain a derivative that is embedded in the product and must be accounted for under Accounting Standards Codification (ASC) Topic 815, Derivatives and Hedging. Under Topic ASC 815, the Company assesses whether the embedded derivative is clearly and closely related to the host contract. When the embedded derivative possesses economic characteristics that are not clearly or closely related to the economic characteristics of the host contract and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host instrument for measurement purposes. Embedded derivatives, which are reported with the host instrument in the balance sheets in policy reserves and annuity account values, are reported at fair value, with changes in fair value recognized in the statements of operations.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

1. Nature of Operations and Significant Accounting Policies (continued)

Deferred Policy Acquisition Costs

To the extent recoverable from future policy revenues and gross profits, incremental direct costs of the contract acquisitions (commissions) as well as certain costs directly related to acquisition activities (underwriting, other policy issuance and processing, and selling costs) for the successful acquisition or renewal of deferred annuity business have been deferred. Sales inducements such as premium or interest bonuses are not included in deferred policy acquisition costs but are instead included in deferred sales inducement costs in the balance sheets. Deferred policy acquisition costs are amortized in proportion to the present value, discounted at the crediting rate, of actual and expected gross profits from investments (gross blended separate account return assumption of 7.69% for all years), mortality, and expense margins. Amortization is adjusted retrospectively when estimates of current or future gross profits to be realized from a group of products are revised. Deferred policy acquisition costs are adjusted for the impact on estimated gross profits of net unrealized gains and losses on bonds, with the adjustment reflected in stockholder’s equity as a component of accumulated other comprehensive income or loss, net of applicable income taxes.

For insurance and annuity contracts, policyholders can elect to modify product benefits, features, rights, or coverage by exchanging a contract for a new contract or by an amendment, an endorsement, or a rider to a contract or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. The Company accounts for internal replacements as a termination of the original contract and an issuance of the new contract. Consistent with this, the Company anticipates these transactions in establishing amortization periods and other valuation assumptions.

Deferred Sales Inducement Costs

Deferred sales inducement costs consist of bonus interest credits and premium credits added to certain annuity contract values. These benefits are capitalized to the extent they are incremental to amounts that would be credited on similar contracts without the applicable feature. The amounts capitalized are amortized using the same methodology and assumptions used to amortize deferred policy acquisition costs.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

1. Nature of Operations and Significant Accounting Policies (continued)

Value of Business Acquired

Value of business acquired (VOBA) is an asset that reflects the present value of estimated net cash flows embedded in the insurance contracts that existed at the time of the Company’s change in control. VOBA is amortized in a similar manner to the amortization of deferred policy acquisition costs.

Intangible Assets

In accordance with ASC Topic 350, Intangibles – Goodwill and Other, intangible assets meeting certain criteria are recognized apart from goodwill. This guidance prohibits the amortization of intangible assets with indefinite useful lives. Additionally, the Company assesses whether its indefinite-lived intangible assets are impaired at least annually based on an evaluation of projected cash flows. If impairment exists, the amount of such impairment is calculated based on the estimated fair value of the assets.

Separate Accounts

The separate account assets and liabilities reported in the accompanying balance sheets represent funds that are separately administered for the benefit of contract holders who bear the investment risk. The separate account assets are carried at fair value, and separate account liabilities are carried at an equivalent value. Revenues and expenses related to separate account assets and liabilities, to the extent of benefits paid or provided to the separate account contract holders, are excluded from the amounts reported in the statements of operations. Investment income and gains or losses arising from separate accounts accrue directly to the contract holders and, therefore, are not included in investment income in the accompanying statements of operations. Revenues to the Company from the separate accounts consist principally of contract maintenance charges, administrative fees, and mortality and expense risk charges. The Company also issues variable annuity contracts through separate accounts that include various types of guaranteed minimum death benefit (GMDB), guaranteed minimum withdrawal benefit (GMWB), and guaranteed minimum income benefit (GMIB) features. Certain features of these guarantees are accounted for as embedded derivative reserves, whereas other guarantees are accounted for as benefit reserves. As discussed in Note 11, the embedded derivative reserves are reinsured with Security Benefit Life Insurance Company (SBL), an affiliate.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

1. Nature of Operations and Significant Accounting Policies (continued)

Policy Reserves and Annuity Account Values

Liabilities for future policy benefits for deferred annuity products represent contract values accumulated at interest without reduction for potential surrender charges. Interest on accumulated contract values is credited to contracts as earned. Crediting rates ranged from 1.00% to 2.30% during 2013, 1.00% to 3.85% during 2012, and 1.25% to 4.10% during 2011. Policy reserves are adjusted for the impact on estimated gross profits of net unrealized gains and losses on bonds, with the adjustment reflected in stockholder’s equity as a component of accumulated other comprehensive income or loss, net of applicable income taxes.

Reinsurance

The Company utilizes reinsurance agreements to manage certain risks associated with the annuity operations and to reduce exposure to large losses. In the accompanying financial statements, premiums, benefits, settlement expenses, and deferred policy acquisition costs are reported net of reinsurance ceded; policy liabilities and accruals are reported gross of reinsurance ceded. Reinsurance premiums and benefits are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. The Company remains liable to policyholders if the reinsurers are unable to meet their contractual obligations under the applicable reinsurance agreements. To minimize its exposure to significant losses from reinsurance insolvencies, the Company evaluates the financial condition of its reinsurers, monitors concentrations of credit risk arising from similar activities or economic characteristics of reinsurers, and requires collateralization of balances where allowable by contract.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

1. Nature of Operations and Significant Accounting Policies (continued)

Deferred Income Taxes

Deferred income tax assets and liabilities are determined based on differences between the financial reporting and income tax bases of assets and liabilities and are measured using the enacted tax rates and laws. Deferred income tax expense or benefit, reflected in the Company’s statements of operations as a component of income tax expense (benefit), is based on the changes in deferred income tax assets or liabilities from period to period (excluding unrealized capital gains and losses on securities available for sale). Deferred income tax assets are subject to ongoing evaluation of whether such assets will be realized. The ultimate realization of deferred income tax assets depends on generating future taxable income during the periods in which temporary differences become deductible. The Company records a valuation allowance to reduce its deferred income tax assets to an amount that represents management’s best estimate of the amount of such deferred income tax assets that will more likely than not be realized using the enacted tax rates and laws.

Recognition of Revenues

Revenues from deferred annuities consist of policy charges for the mortality and expense risk charge, policy administration charges, and surrender charges assessed against contract holder account balances during the period and are recognized as earned.

Statutory Financial Information

The Company’s statutory-basis financial statements are presented on the basis of accounting practices prescribed or permitted by the New York Department of Financial Services (the Department). The Department has adopted the National Association of Insurance Commissioners’ (NAIC) statutory accounting practices as the basis of its statutory accounting practices.

In addition, the Superintendent of the Department (the Superintendent) has the right to permit other specific practices that may deviate from prescribed practices. “Permitted” statutory accounting practices encompass all accounting practices that are not prescribed; such practices may differ from state to state, may differ from company to company within a state, and may change in the future. The Company has no permitted practices.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

1. Nature of Operations and Significant Accounting Policies (continued)

Under the laws of the state of New York, the Company is required to maintain a minimum statutory-basis capital and surplus of $6,000,000. Of this amount, $4,000,000, which is the Company’s minimum surplus to policyholders, must be invested in specific types of investments in accordance with New York law.

Statutory capital and surplus of the insurance operations was $30,638,000 and $9,801,000 at December 31, 2013 and 2012, respectively. Statutory net income (loss) of the insurance operations was $(3,824,000), $(2,866,000), and $255,000 for the years ended December 31, 2013, 2012, and 2011, respectively.

The payment of dividends by the Company to its stockholder is limited and can only be made from earned profits unless prior approval is received from the Superintendent. The maximum amount of dividends that may be paid by life insurance companies without prior approval of the Superintendent is also subject to restrictions relating to the statutory surplus and net gain from operations. In 2014, the Company is not allowed to pay dividends without prior approval of the Superintendent.

Reclassifications

In the prior year’s balance sheet, the reinsurance derivative liability was reclassified out of reinsurance recoverable and funds withheld to conform to the current year’s presentation.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

2. Investments

Information as to the amortized cost, gross unrealized gains and losses, and fair values of the Company’s portfolio of bonds and equity securities available for sale as of December 31, 2013 and 2012, is as follows:


	2013
	Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In Thousands)
Available for sale
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	12,468	$	—	$	948	$	11,520
Obligations of government-sponsored enterprises		27,817		87		1,855		26,049
Corporate		33,390		118		1,128		32,380
Obligations of foreign governments		722		—		82		640
Municipal obligations		9,922		9		431		9,500
Commercial mortgage-backed		10,754		29		375		10,408
Residential mortgage-backed		18,145		93		579		17,659
Collateralized debt obligations		2,020		36		22		2,034
Other asset-backed obligations		32,806		195		85		32,916

Total bonds	$	148,044	$	567	$	5,505	$	143,106
Equity securities:
Financial	$	3,611	$	—	$	249	$	3,362
Total equity securities	$	3,611	$	—	$	249	$	3,362

	2012
	Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In Thousands)
Available for sale
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,091	$	2	$	—	$	1,093
Obligations of government-sponsored enterprises		9,276		366		1		9,641
Total bonds	$	10,367	$	368	$	1	$	10,734

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

2. Investments (continued)

For bonds and equity securities with unrealized losses as of December 31, 2013, the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows:

	December 31, 2013
	Less Than 12 Months				Greater Than or Equal to 12 Months				Total
	Carrying Amount		Gross Unrealized Losses		Carrying Amount		Gross Unrealized Losses		Carrying Amount		Gross Unrealized Losses
	(In Thousands)
Bonds, available for sale:
U.S. Treasury securities and other U.S. government corporations and agencies	$	11,520	$	948	$	—	$	—	$	11,520	$	948
Obligations of government-sponsored enterprises		20,525		1,854		96		1		20,621		1,855
Corporate		25,852		1,128		—		—		25,852		1,128
Obligations of foreign governments		641		82		—		—		641		82
Municipal obligations		7,661		431		—		—		7,661		431
Commercial mortgage-backed		7,580		375		—		—		7,580		375
Residential mortgage-backed		14,009		579		—		—		14,009		579
Collateralized debt obligations		805		22		—		—		805		22
Other asset-backed obligations		11,673		85		—		—		11,673		85
Total bonds, available for sale	$	100,266	$	5,504	$	96	$	1	$	100,362	$	5,505
Total equity securities available for sale	$	3,362	$	249	$	—	$	—	$	3,362	$	249

At December 31, 2013, the Company held $100.4 million in available-for-sale fixed maturity securities with unrealized losses of $5.5 million. The Company’s portfolio consists of fixed maturity securities where 85% are investment grade (rated AAA through BBB-). For those securities that have been in a loss position for less than 12 months, the Company holds 183 securities with a carrying value of $100.3 million and unrealized losses of $5.5 million. Of this portfolio, 85% were investment grade (rated AAA through BBB-) at December 31, 2013. The unrealized losses on these securities can primarily be attributed to changes in market interest rates and changes in spreads since the securities were acquired.

At December 31, 2012, the Company had three securities in an unrealized loss position. Unrealized losses on these securities were approximately $1,000 with a related fair value of $186,000. At December 31, 2012, the Company’s portfolio consisted entirely of investment grade (rated AAA) fixed maturity securities.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

2. Investments (continued)

The Company closely monitors those securities where impairment concerns may exist. The Company considers relevant facts and circumstances in evaluating whether the impairment of a security is other than temporary. Relevant facts and circumstances considered include the following: (1) the length of time the fair value has been below cost; (2) the financial position and access to capital of the issuer, including the current and future impact of any specific events; (3) for fixed maturity securities, the Company’s intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost basis, and in the case of equity securities, the Company’s ability and intent to hold the security until it recovers in value; and (4) in the evaluation of the potential impairment of asset-backed securities, several factors are taken into account, including cash flow, collateral sufficiency, liquidity, and economic conditions. With respect to equity securities, the Company considers in its other-than-temporary impairment analysis its intent and ability to hold a particular equity security for a period of time sufficient to allow for the recovery of its value to an amount equal to or greater than cost. Based upon this evaluation, it was determined that the Company has the ability and intent to hold these investments until a recovery of fair value. To the extent the Company determines that an equity security is deemed other-than-temporarily impaired, the difference between amortized cost and fair value is charged to earnings. The Company recognizes an other-than-temporary impairment of the difference between the amortized cost and fair value for debt securities in net income if the Company intends to sell the security or it is more likely than not the Company will be required to sell the security before the recovery of the amortized cost basis. For debt securities that the Company does not expect to recover the amortized cost basis, does not plan to sell, and it is not more likely than not that the Company would be required to sell the security before recovery of the amortized cost basis, the other-than-temporary impairment is bifurcated. The credit portion of the loss is recognized in net income, and the noncredit portion is recognized in other comprehensive income.

The credit loss component of a debt security impairment is estimated as the difference between amortized cost and the present value of the expected cash flows of the security. The methodology and assumptions for establishing the best estimate cash flows vary depending on the type of security. For fixed rate securities, the present value is determined using the best estimate cash flows discounted at the effective interest rate implicit to the security just prior to impairment. For variable rate securities, the present value is determined using the best estimate cash flows discounted at the variable rate that exists as of the date the cash flow estimate is made. The asset-backed securities cash flow estimates are based on bond-specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

2. Investments (continued)

severity, prepayment speeds, and structural support, including subordination and guarantees. For the following reasons, the Company did not consider these investments to be other-than-temporarily impaired at December 31, 2013: the Company expects to recover its amortized costs; the Company did not intend to sell the fixed maturity available-for-sale securities with unrealized losses; and it was not more likely than not that the Company would be required to sell these securities before recovery of the amortized cost, which may be maturity.

The amortized cost and fair value of bonds available for sale at December 31, 2013, 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 penalties.


	Amortized		Fair
	Cost		Value
	(In Thousands)
Due after one year through five years	$	4,443	$	4,424
Due after five years through ten years		30,089		29,168
Due after ten years		21,970		20,448
Mortgage-backed and other asset-backed securities		91,542		89,066
	$	148,044	$	143,106

At December 31, 2013, bonds available for sale with a fair value of $564,000 were held in joint custody with the New York Department of Financial Services to comply with statutory regulations.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

2. Investments (continued)

Major categories of net investment income are summarized as follows for the years ended December 31:


	2013			2012			2011
	(In Thousands)
Interest on bonds – available for sale	$	3,516		$	436		$	341
Interest on equities – available for sale		157			—			—
Interest on bonds – fair value option		6,500			3,449			—
Other		28			8			15
Total		10,201			3,893			356
Ceded to reinsurer		(6,500	)		(3,449	)		—
Net investment income	$	3,701		$	444		$	356

Proceeds from the sale of bonds and equity securities available for sale and realized gains and losses are as follows for the years ended December 31:


	2013		2012		2011
	(In Thousands)
Proceeds from sales	$	58,564	$	3,688	$	—
Gross realized gains		417		83		—
Gross realized losses		947		—		—

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

2. Investments (continued)

Net realized/unrealized (losses) gains, net of ceded reinsurance gains and associated amortization of deferred policy acquisition costs and VOBA consist of the following for the years ended December 31:


	2013			2012
	(In Thousands)
Realized (losses) gains, available for sale:
Bonds	$	(491	)	$	83
Equity securities		(39	)		—
Total realized (losses) gains, available for sale		(530	)		83

Realized gains, fair value option:
Bonds		53			1,037
Equity securities		—			73
Total realized gains, fair value option		53			1,110

Holding gains (losses):
Bonds, fair value option		(9,030	)		4,913
Equity securities, fair value option		(227	)		58
Embedded derivative on reinsurance contract		9,257			(4,971	)
Total holding gains (losses)		—			—
		(477	)		1,193

Related impact on deferred policy acquisition costs and VOBA		6			(65	)
Net ceded reinsurance gains		(53	)		(1,110	)
Net realized/unrealized (loss) gains	$	(524	)	$	18

The Company did not have any realized gains or losses for the year ended December 31, 2011.

At December 31, 2013, the Company had securities and cash pledged with a market value of approximately $8,733,000 as collateral in relation to its reinsurance agreement (see Note 11).

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

3. Derivative Instruments

The Company recognizes all derivative instruments, such as embedded derivatives, in the balance sheets at fair value.

The Company entered into a coinsurance with funds withheld arrangement with Guggenheim Life and Annuity Company (GLAC), an affiliate (see Note 11). Under ASC Topic 815, Derivatives and Hedging, the Company’s funds withheld liability contains an embedded derivative that requires bifurcation due to credit risks the reinsurer is assuming that are not clearly and closely related to the creditworthiness of the Company. The embedded derivative has characteristics similar to a total return swap; as the Company cedes the total return on a designated investment portfolio to the reinsurer, the reinsurer assumes the interest credited to the policyholders on the policies covered by the agreements, which is relatively fixed. The value of the embedded derivative in the funds withheld liability is equal to the value of the unrealized gains or losses on the segregated assets which support the liability

The Company has certain variable annuity guaranteed living benefits (GLB) products with a GMWB feature that is an embedded derivative. The Company have reinsured 100% of this GLB feature with SBL. Certain features of this guarantee have elements of both insurance benefits accounted for under the Financial Services – Insurance – Claim Costs and Liabilities for Future Policy Benefits Subtopic of the FASB ASC, and embedded derivatives accounted for under the Derivatives and Hedging and Fair Value Measurements and Disclosures Topics of the FASB ASC. The value of the embedded derivative reserve and the benefit reserve are calculated based on the specific characteristics of the GLB feature.

The fair value of the embedded derivative for GMWB feature is included in policy reserves and annuity account values on the balance sheets. The fair value of the embedded derivative within the coinsurance funds withheld and coinsurance arrangements is included in the reinsurance derivative asset and liability on the balance sheets.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

3. Derivative Instruments (continued)

The fair value of the Company’s derivative instruments classified as assets and liabilities in the balance sheets as of December 31 is as follows:


	Derivative Asset				Derivative Liability
	2013		2012		2013		2012
	(In Thousands)
Embedded derivatives:
GMWB reserve	$	—	$	—	$	306	$	789
Reinsurance contracts		4,592		—		—		4,182
Total derivative instruments	$	4,592	$	—	$	306	$	4,971

The changes in the market value of the embedded derivative for the GMWB reserve is included in interest credited to annuity account balances on the statements of operations. The change in the fair value of the embedded derivative within the coinsurance funds withheld arrangement is included in net realized/unrealized gains (losses) in the statements of operations. The change in the fair value of the embedded derivative coinsurance arrangement with SBL is included in interest credited to annuity account balances in the statements of operations.

The following table shows the change in the fair value of derivatives in the statements of operations for the years ended December 31:


	2013		2012			2011
	(In Thousands)
Embedded derivatives:
GMWB reserve	$	483	$	22		$	120
Reinsurance contract		8,774		(4,993	)		(120	)
Total change in derivative instruments	$	9,257	$	(4,971	)	$	—

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

4. Deferred Policy Acquisition Costs

An analysis of the deferred policy acquisition costs asset balance is presented below for the years ended December 31:


	2013			2012			2011
	(In Thousands)
Balance at beginning of the year	$	3,086		$	124		$	38
Cost deferred during the year		7,092			2,983			137
Imputed interest		296			30			9
(Amortized) accreted to expense		(394	)		70			(26	)
Effect of realized gains		—			(31	)		—
Effect of unrealized gains		125			(90	)		(34	)
Balance at end of the year	$	10,205		$	3,086		$	124

The Company would have deferred costs of $3,064,000 for the year ended December 31, 2012, based on assumptions utilized prior to the adoption of ASU 2010-26.

5. Deferred Sales Inducements

An analysis of the deferred sales inducement costs asset balance is presented below for the year ended December 31:

	2013
	(In Thousands)
Balance at beginning of the year	$	—
Costs deferred		33
Accreted to expense		1
Balance at end of the year	$	34

There were no deferred sales inducements capitalized for the years ended December 31, 2012 and 2011.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

6. Value of Business Acquired

The Company recorded VOBA that is being amortized in a similar manner to the deferred policy acquisition costs. An analysis of VOBA and associated amortization is presented below for the years ended December 31:


	2013			2012			2011
	(In Thousands)
Balance at beginning of the year	$	4,346		$	5,188		$	6,044
Imputed interest		213			292			337
Amortized to expense		(992	)		(1,114	)		(1,147	)
Effect of realized loss (gain)		6			(34	)		—
Effect of unrealized loss (gain)		83			14			(46	)
Balance at end of the year	$	3,656		$	4,346		$	5,188

The weighted average amortization period is 20 years for VOBA.

The expected future amortization schedule for the next five years based on current assumptions is expected to be as follows (in thousands):


2014	$	482
2015		390
2016		306
2017		255
2018		226

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

7. Other Comprehensive Income (Loss)

The components of other comprehensive income (loss) are as follows:


	Pre-Tax			Tax			After-Tax
	(In Thousands)
Other comprehensive income for the year ended December 31, 2011:
Unrealized gains on available-for-sale securities	$	324		$	(128	)	$	196
Effect on deferred policy acquisition costs and VOBA		(79	)		31			(48	)
Total other comprehensive income for the period ended December 31, 2011	$	245		$	(97	)	$	148

Other comprehensive income for the year ended December 31, 2012:
Unrealized gains on available-for-sale securities	$	188		$	(82	)	$	106
Reclassification adjustment for gains included in net income		(18	)		7			(11	)
Effect on deferred policy acquisition costs and VOBA		(141	)		56			(85	)
Effect on policy reserves and annuity account values		22			(8	)		14
Total other comprehensive income for the period ended December 31, 2012	$	51		$	(27	)	$	24

Other comprehensive loss for the year ended December 31, 2013:
Unrealized losses on available-for-sale securities	$	(6,080	)	$	2,408		$	(3,672	)
Reclassification adjustment for losses included in net income		530			(210	)		320
Effect on deferred policy acquisition costs and VOBA		208			(82	)		126
Effect on policy reserves and annuity account values		(32	)		13			(19	)
Total other comprehensive loss for the period ended December 31, 2013	$	(5,374	)	$	2,129		$	(3,245	)

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

7. Other Comprehensive Income (Loss) (continued)

Accumulated Other Comprehensive Income


	Unrealized
	Gains (Losses)
	on Available-
	for-Sale
	Securities
	(In Thousands)
Accumulated other comprehensive loss at January 1, 2011	$	(33	)

Other comprehensive income		148
Accumulated other comprehensive income at December 31, 2011		115

Other comprehensive income before reclassifications		35
Reclassification adjustment for gains included in net income (1)		(11	)
Accumulated other comprehensive income at December 31, 2012		139

Other comprehensive loss before reclassifications		(3,565	)
Reclassification adjustment for losses included in net income (1)		320
Accumulated other comprehensive loss at December 31, 2013	$	(3,106	)

(1)	The amounts reclassified from accumulated other comprehensive income (loss) are included in net realized/unrealized (losses) gains and income tax expense on the statements of operations.

8. Income Taxes

For the years ended December 31, 2013, 2012, and 2011, the Company filed separate federal and state income tax returns. With few exceptions, the Company is no longer subject to U.S. federal and state examinations by tax authorities for years before 2010. The Internal Revenue Service (IRS) is not currently examining any of the Company’s federal tax returns.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

8. Income Taxes (continued)

The provision for income taxes includes current federal and state income tax expense or benefit and deferred income tax expense or benefit due to temporary differences between the financial reporting and income tax bases of assets and liabilities. Such deferred income taxes relate principally to reserves, deferred policy acquisition costs, VOBA, and unrealized capital gains and losses on bonds available for sale.

The Company recognizes interest and penalties related to the unrecognized tax benefits in interest expense as a component of other operating expense. For the years ended December 31, 2013, 2012, and 2011, there were no interest or penalties recognized.

At December 31, 2013 and 2012, the Company has no unrecognized tax benefits.

Income tax expense (benefit) on the statements of operations consists of the following for the years ended December 31:


	2013			2012			2011
	(In Thousands)
Current tax (benefit) expense	$	(528	)	$	590		$	(33	)
Deferred tax expense (benefit)		237			(817	)		392
Income tax expense (benefit)	$	(291	)	$	(227	)	$	359

The provision for income taxes differs from the amount computed at the statutory federal income tax rate due primarily to the dividends received deduction (DRD), state income taxes, and change in valuation allowance.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

8. Income Taxes (continued)

Deferred income tax assets and liabilities consist of the following as of December 31:


	2013			2012
	(In Thousands)
Deferred income tax assets:
Future policy benefits	$	2,850		$	2,156
Investment losses		4,221			—
Reinsurance derivative		—			1,998
Deferred policy acquisition costs		—			354
Net operating loss		687			268
Other		3			—
Total deferred income tax assets		7,761			4,776
Valuation allowance		(72	)		—
Net deferred income tax assets		7,689			4,776

Deferred income tax liabilities:
Deferred policy acquisition costs		1,667			—
Value of business acquired		1,448			1,722
Investment gains		119			2,269
Reinsurance derivative		1,796			—
Other		30			48
Total deferred income tax liabilities		5,060			4,039
Net deferred income tax asset	$	2,629		$	737

The Company assesses the available positive and negative evidence surrounding the recoverability of the deferred income tax assets and applies its judgment in estimating the amount of valuation allowance necessary under the circumstances. The Company recorded a valuation allowance of $72,000 at December 31, 2013, and $0 at December 31, 2012.

At December 31, 2013, there is a net operating loss (NOL) of $1,551,000 that is available to offset future income. The NOL will expire in 2023.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

9. Related-Party Transactions

During the years ended December 31, 2013, 2012, and 2011, the Company received $232,000, $248,000, and $327,000, respectively, from affiliates for revenue sharing fees. These revenues are included in asset-based fees in the statements of operations.

During the years ended December 31, 2013, and 2012, the Company received $78,000 and $67,000, respectively, from affiliates for administrative services. The Company did not receive any amounts during the year ended December 31, 2011. These fees are included in other revenues on the statements of operations.

During the years ended December 31, 2013, 2012, and 2011, the Company paid $692,000, $337,000, and $174,000, respectively, to affiliates for providing management and administrative services. These expenses are included in commissions and other operating expenses in the statements of operations.

The Company has contracted with Guggenheim Partners Investment Management, LLC (GPIM), an affiliate, to perform investment advisory services. During the years ended December 31, 2013, 2012, and 2011, the Company paid fees of $294,000, $44,000 and $14,000, respectively, for the services performed. These fees are included in commissions and other operating expenses in the statements of operations.

The Company had receivables from its affiliates of $157,000 and $1,584,000 as of December 31, 2013, and 2012, respectively.

During the year ended December 31, 2013, the Company received $25,000,000 in capital contributions from SBC.

10. Fair Value Measurements

Fair Value Hierarchy

In accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures, the Company groups its financial assets and liabilities measured at fair value in three levels based on the inputs and assumptions used to determine the fair value. These levels are as follows:

Level 1 – Valuations are based upon unadjusted quoted prices for identical instruments traded in active markets. Level 1 assets include certain cash equivalents and separate account assets.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

10. Fair Value Measurements (continued)

Level 2 – Valuations are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which significant assumptions are observable in the market. Level 2 assets include U.S. Treasury securities, other U.S. government securities, equity securities, and debt securities and certain asset-backed and mortgage-backed securities that are model-priced by vendors using inputs that are observable or derived principally from or corroborated by observable market data.

Level 3 – Valuations are generated from techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of discounted cash flow models, spread-based models, and similar techniques using the best information available in the circumstances. Level 3 assets include certain debt securities and asset-backed securities priced using broker quotes or other methods that use unobservable inputs. Level 3 liabilities include embedded derivative instruments.

Determination of Fair Value

Under ASC Topic 820, the Company bases fair values on the price that would be received to sell an asset (exit price) or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It is the Company’s policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy in ASC Topic 820.

Cash Equivalents

Cash equivalents include fixed maturities with an original maturity of 90 days or less and money market accounts. The cash equivalents based on quoted market prices are included in Level 1 assets. When quoted prices are not available, the Company utilizes an independent pricing service, and the reviews are consistent with the fixed maturities process.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

10. Fair Value Measurements (continued)

Fixed Maturities

Fixed maturities include bonds and asset-backed securities. Fair values for fixed maturities are based on quoted market prices, if available. The assets based on quoted market prices are included in Level 1 assets.

For fixed maturities not actively traded, the Company’s top priority is to obtain fair values from independent pricing services. The Company has regular interactions with its investment advisor, GPIM, to understand the pricing methodologies used and to confirm the prices are utilizing observable inputs. The pricing methodologies will vary based on the asset class and include inputs such as estimated cash flows, reported trades, broker quotes, credit quality, industry, and economic events. Fixed maturities with fair values obtained from pricing services, applicable market indices, or internal models with substantially all observable inputs are included in Level 2.

The Company will obtain a broker quote or utilize an internal pricing model specific to the asset utilizing relevant market information if the Company is not able to utilize Level 1 or 2 sources. These assets are included in Level 3 and can include fixed maturities across all categories.

Equity Securities

Equity securities include nonredeemable preferred stock. Fair values of equity securities are determined using quoted prices in active markets for identical assets when available, which are included in Level 1. When quoted prices are not available, the Company utilizes internal valuation methodologies appropriate for the specific asset that use observable inputs such as underlying share prices; therefore, the assets are included in Level 2. Fair values might also be determined using broker quotes or through the use of internal models or analysis that incorporate significant assumptions deemed appropriate given the circumstances and consistent with what other market participants would use when pricing such securities. These assets are included in Level 3.

Short-term investments

Short-term investments include fixed maturities with an original maturity greater than 90 days but less than one year. Fair values of short-term investments are determined in a manner consistent with the fixed maturities process previously discussed.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

10. Fair Value Measurements (continued)

Separate Account Assets

Fair values of equity securities within the separate accounts are determined using quoted prices in active markets for identical assets, and are reflected in Level 1.

Reinsurance derivative asset/liability

The fair value of the reinsurance derivative is estimated based on the fair value of the assets supporting the funds withheld liability under the coinsurance funds withheld arrangement or based on the fair value of the investment contract guarantee embedded derivative. These assets/liabilities are included in Level 3.

Embedded derivatives – Investment contract guarantees

The Company records guarantees for annuity contracts containing guaranteed riders for GMWBs as derivative instruments. The fair value of the obligation is calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the anticipated life of the related contacts. The cash flow estimates are produced using stochastic techniques under the variety of market returns scenarios and other best estimate assumptions. These liabilities are included in Level 3.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

10. Fair Value Measurements (continued)

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents categories reported at fair value on a recurring basis as follows:


	December 31, 2013
			Fair Value Hierarchy Level
	Fair Value		Level 1		Level 2		Level 3
	(In Thousands)
Assets:
Cash equivalents	$	89,999	$	89,999	$	—	$	—
Bonds:
U.S. Treasury securities and obligations of U.S. government corporations and agencies		17,778		—		17,778		—
Obligations of government-sponsored enterprises		36,091		—		34,474		1,617
Corporate		103,219		—		88,095		15,124
Obligations of foreign governments		1,923		—		1,923		—
Municipal obligations		29,662		—		29,662		—
Commercial mortgage-backed		19,038		—		14,927		4,111
Residential mortgage-backed		24,014		—		24,014		—
Collateralized debt obligations		2,788		—		—		2,788
Other asset-backed obligation		53,307		—		35,619		17,688
Total bonds		287,820		—		246,492		41,328
Equity securities:
Financial		5,118		—		5,118		—
Short-term investments		630		—		630		—
Reinsurance derivative asset		4,592		—		—		4,592
Separate account assets		146,255		146,255		—		—
Total assets	$	534,414	$	236,254	$	252,240	$	45,920

Liabilities:
Embedded derivatives:
GMWB reserve	$	306	$	—	$	—	$	306
Total liabilities	$	306	$	—	$	—	$	306

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

10. Fair Value Measurements (continued)


	December 31, 2012
			Fair Value Hierarchy Level
	Fair Value		Level 1		Level 2		Level 3
	(In Thousands)
Assets:
Cash equivalents	$	127,814	$	9,215	$	118,599	$	—
Bonds:
U.S. Treasury securities and obligations of U.S. government corporations and agencies		1,093		—		1,093		—
Obligations of government-sponsored enterprises		14,261		—		14,261		—
Corporate		51,427		—		47,843		3,584
Municipal obligations		18,284		—		18,284		—
Commercial mortgage-backed		3,346		—		1,770		1,576
Residential mortgage-backed		231		—		231		—
Other asset-backed obligations		19,618		—		11,655		7,963
Total bonds		108,260		—		95,137		13,123
Equity securities:
Financial		780		—		780		—
Separate account assets		136,033		136,033		—		—
Total assets	$	372,887	$	145,248	$	214,516	$	13,123

Liabilities:
Embedded derivatives:
GMWB reserves	$	789	$	—	$	—	$	789
Reinsurance derivative liability		4,182		—		—		4,182
Total liabilities	$	4,971	$	—	$	—	$	4,971

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

10. Fair Value Measurements (continued)

Changes in Level 3 Fair Value Measurements

The reconciliation for all Level 3 assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs for the year ended December 31, 2013, is as follows:


			Total Realized/Unrealized Gains and Losses													Change in Unrealized Gains and
	Balance at January 1, 2013		Included in Net Income(1)			Included in Other Comprehensive Income			Purchases, Issuances, Sales, and Settlements		Transfers			Balance at December 31, 2013		Losses in Net Income for Positions Still Held
	(In Thousands)
Assets:
Bonds:
Obligations of government-sponsored enterprises	$	—	$	1		$	(36	)	$	1,204	$	448		$	1,617	$	—
Corporate		4,282		(351	)		(195	)		11,563		(175	)		15,124		(344	)
Commercial mortgage-backed		1,576		(156	)		(11	)		2,702		—			4,111		(185	)
Collateralized debt obligations		—		32			13			2,743		—			2,788		(11	)
Other asset-backed obligation		7,265		14			127			14,026		(3,744	)		17,688		(214	)
Total bonds		13,123		(460	)		(102	)		32,238		(3,471	)		41,328		(754	)

Reinsurance derivative asset		—		4,592			—			—		—			4,592		4,592
Total assets	$	13,123	$	4,132		$	(102	)	$	32,238	$	(3,471	)	$	45,920	$	3,838

Liabilities:
Embedded derivatives:		_		_			_			_
GMWB reserves	$	789	$	(483	)	$	—		$	—	$	—		$	306	$	(483	)
Reinsurance derivative liability		4,182		(4,182	)		—			—		—			—		(4,182	)
Total liabilities	$	4,971	$	(4,665	)	$	—		$	—	$	—		$	306	$	(4,665	)

(1)

Both realized gains (losses) and mark-to-market unrealized gains (losses) are generally reported in net realized/unrealized gains (losses) within the statements of operations. The changes in the market value of the embedded derivatives for the GMWB reserves are included in interest credited to annuity account balances on the statements of operations.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

10. Fair Value Measurements (continued)

The details of the Level 3 purchases, issuances, sales, and settlements for the year ended December 31, 2013, is as follows:


	Purchases		Issuances		Sales		Settlements		Net
	(In Thousands)
Assets:
Bonds:
Obligations of government-sponsored enterprises	$	1,206	$	—	$	2	$	—	$	1,204
Corporate		11,907		—		344		—		11,563
Commercial mortgage-backed		3,515		—		813		—		2,702
Collateralized debt obligations		3,162		—		419		—		2,743
Other asset-backed obligations		14,554		—		528		—		14,026
Total assets	$	34,344	$	—	$	2,106	$	—	$	32,238

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

10. Fair Value Measurements (continued)

The reconciliation for all Level 3 assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs for the year ended December 31, 2012, is as follows:

			Total Realized/Unrealized Gains and Losses											Change in Unrealized Gains and
	Balance at January 1, 2012		Included in Net Income(1)			Included in Other Comprehensive Income		Purchases, Issuances, Sales, and Settlements		Transfers		Balance at December 31, 2012		Losses In Net Income for Positions Still Held
	(In Thousands)
Assets:
Bonds:
Corporate	$	—	$	94		$	—	$	4,188	$	—	$	4,282	$	94
Commercial mortgage-backed		—		29			—		1,547		—		1,576		29
Other asset-backed obligation		—		312			—		6,953		—		7,265		312
Total bonds		—		435			—		12,688		—		13,123		435
Reinsurance derivative asset		811		(811	)		—		—		—		—		(811	)
Total assets	$	811	$	(376	)	$	—	$	12,688	$	—	$	13,123	$	(376	)

Liabilities:
Embedded derivatives:
GMWB reserves	$	811	$	(22	)	$	—	$	—	$	—	$	789	$	(22	)
Reinsurance derivative liability		—		4,182			—		—		—		4,182		4,182
Total liabilities	$	811	$	4,160		$	—	$	—	$	—	$	4,971	$	4,160

The details of the Level 3 purchases, issuances, sales, and settlements for the year ended December 31, 2012, is as follows:


	Purchases		Issuances		Sales			Settlements		Net
	(In Thousands)
Assets:
Bonds:
Corporate	$	4,254	$	—	$	(66	)	$	—	$	4,188
Commercial mortgage-backed		1,551		—		(4	)		—		1,547
Other asset-backed obligation		6,967		—		(14	)		—		6,953
Total assets	$	12,772	$	—	$	(84	)	$	—	$	12,688

(1)

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

10. Fair Value Measurements (continued)

Transfers

Transfers of assets and liabilities measured at fair value on a recurring basis between hierarchy levels for the year ended December 31, 2013, are as follows:

	Transfers Out of Level 1 Into Level 2		Transfers Out of Level 1 Into Level 3		Transfers Out of Level 2 Into Level 1		Transfers Out of Level 2 Into Level 3		Transfers Out of Level 3 Into Level 1		Transfers Out of Level 3 Into Level 2
	(In Thousands)
Assets:
Bonds:
Obligations of government-sponsored enterprises	$	—	$	—	$	—	$	448	$	—	$	—
Corporate		—		—		—		—		—		175
Other asset-backed obligation		—		—		—		225		—		3,969
Total Bonds	$	—	$	—	$	—	$	673	$	—	$	4,144

The Company did not have any transfers into or out of Levels 1, 2, or 3 for the years ended December 31, 2012 and 2011. The transfers between levels are determined as of the end of the period for which the transfer was completed.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

10. Fair Value Measurements (continued)

Quantitative Information about Level 3 Fair Value Measurements

The following tables provide quantitative information about the significant unobservable inputs used for recurring fair value measurements categorized within Level 3, excluding assets and liabilities for which significant unobservable inputs primarily consist of those valued using broker quotes.

		As of December 31, 2013
	Assets / Liabilities Measured at Fair Value		Valuation Technique(s)	Unobservable Input Description	Input/Range of Inputs [Weighted Average]
		(In Thousands)
Assets:
Bonds:
Obligations of government-sponsored enterprises	$	449	Comparable price	Trade price	90 basis points (bps)
Corporate		4,927	Discounted cash flow	Credit spread	140–412 [279] bps
Other asset-backed obligation		249	Discounted cash flow	Credit spread	389 bps
Total bonds		5,625
Reinsurance derivative asset		4,592	See Note (1)
Total assets	$	10,217

Liabilities:
Embedded derivatives:			Discounted cash flow	Own credit spread	144 bps
GMWB reserves				Long-term equity
	$	306		market volatility	Market consistent
Total liabilities	$	306

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

10. Fair Value Measurements (continued)

		As of December 31, 2012
	Assets/ Liabilities Measured at Fair Value		Valuation Technique(s)	Unobservable Input Description	Input/Range of Inputs [Weighted Average]
		(In Thousands)
Assets:
Bonds:
Corporate	$	1,441	Discounted cash flow	Credit spread	269–416 [346] bps
Commercial mortgage-backed		716	Discounted cash flow	Credit spread	653 bps
Other asset-backed obligation		699	Discounted cash flow	Credit spread	325 bps
Total bonds		2,856
Total assets	$	2,856

Liabilities:
Embedded derivatives:
GMWB reserves	$	789	Discounted cash flow	Own credit spread	195 bps
				Long-term equity
				market volatility	Market consistent
				Risk margin	500 bps
Reinsurance derivative liability		4,182	See Note (1)
Total liabilities	$	4,971

(1)	Equal to the net unrealized gains or losses on the underlying assets held in trust to support the funds withheld liability and GMWB reserves ceded to SBL (see Note 3).
(2)	The tables above exclude certain securities for which the fair value of $35,703,000 and $10,267,000 as of December 31, 2013 and 2012, respectively, was based on non-binding broker quotes.

Market comparable discount rates are used as the base rate in the discounted cash flows used to determine the fair value of certain assets. Increases or decreases in the credit spreads on the comparable assets could cause the fair value of assets to significantly decrease or increase, respectively. Additionally, the Company may adjust the base discount rate or the modeled price by applying an illiquidity premium given the highly structured nature of certain assets. Increases or decreases in this illiquidity premium could cause significant decreases or increases, respectively, in the fair value of the asset.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

10. Fair Value Measurements (continued)

Increases or decreases in market volatilities of the underlying assets supporting the funds withheld liability could cause significant increases or decreases, respectively, in the fair value of the embedded derivatives.

Financial Instruments Not Reported at Fair Value

The carrying value and estimated fair value of financial instruments not recorded at fair value on a recurring basis but required to be disclosed at fair value are as follows:

	December 31, 2013
							Fair Value Hierarchy Level
	Carrying Amount			Fair Value			Level 1			Level 2		Level 3
	(In Thousands)
Assets (liabilities):
Policy loans	$	99		$	99		$	—		$	—	$	99
Individual and group annuities		(275,683	)		(237,356	)		—			—		(237,356	)
Separate account liabilities		(146,255	)		(146,255	)		(146,255	)		—		—

	December 31, 2012
							Fair Value Hierarchy Level
	Carrying Amount			Fair Value			Level 1			Level 2		Level 3
	(In Thousands)
Assets (liabilities):
Policy loans	$	68		$	69		$	—		$	—	$	69
Individual and group annuities		(76,010	)		(65,920	)		—			—		(65,920	)
Separate account liabilities		(136,033	)		(136,033	)		(136,033	)		—		—

The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments not measured at fair value but for which fair value is disclosed:

Policy loans – Fair values for policy loans are estimated using discounted cash flow analyses based on market interest rates for similar loans to borrowers with similar credit ratings. Loans with similar characteristics are aggregated for purposes of the calculations.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

10. Fair Value Measurements (continued)

Individual and group annuities – The fair values of the Company’s reserves and liabilities for investment-type insurance contracts are estimated using discounted cash flow analyses based on risk-free rates, nonperformance risk, and a risk margin. Investment-type insurance contracts include annuity and other policy contracts that do not involve significant mortality or morbidity risk and are only a portion of the policyholder liabilities appearing in the balance sheets. Insurance contracts include annuity and other policy contracts that do involve significant mortality or morbidity risk. The fair values for insurance contracts, other than investment-type contracts, are not required to be disclosed.

Separate account liabilities – The fair values of the separate account liabilities are estimated based on the fair value of the related separate account assets, as these are considered to be pass-through contracts. As the applicable separate account assets are already reflected at fair value, any adjustment to the fair value of the block is an assumed adjustment to the separate account liabilities.

11. Reinsurance

Principal reinsurance assumed transactions are summarized as follows for the years ended December 31:


	2013		2012
		(In Thousands)

Premiums received	$	205	$	13,544
Commissions paid	$	—	$	611
Claims paid	$	—	$	—
Surrenders paid	$	624	$	9,974

The Company did not assume any reinsurance for the year ended December 31, 2011.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

11. Reinsurance (continued)

Principal reinsurance ceded transactions are summarized as follows for the years ended December 31:


	2013		2012		2011
	(In Thousands)
Reinsurance ceded:
Premiums paid	$	17,688	$	16,283	$	1
Commissions received	$	717	$	733	$	—
Claim recoveries	$	2	$	10	$	2
Surrenders recovered	$	21,735	$	11,624	$	1

All of the Company’s individual life insurance and the living benefit riders are reinsured 100% with SBL.

Effective January 26, 2012, the Company entered into a coinsurance agreement with a non-affiliated entity for certain group fixed annuity contracts having reserves of $143,537,000. At the same time, the Company entered into an indemnity retrocession agreement on a funds withheld basis with GLAC, whereby the Company ceded and GLAC reinsured on an indemnity basis the same group fixed annuity contracts. Under the agreement with GLAC, the Company established a funds withheld liability of $143,537,000.

Effective May 15, 2012, certain of the group fixed annuity contracts covered by the coinsurance agreement noted above were assumed by the Company through an assumption reinsurance agreement. The assumed contracts continue to be ceded to GLAC under the indemnity retrocession agreement.

As of December 31, 2013 and 2012, the value of the Company’s funds withheld under the indemnity retrocession agreement with GLAC was $157,082,000 and $154,059,000. This amount is included in the funds withheld liability on the balance sheet.

At December 31, 2013 and 2012, the Company had established receivables totaling $155,919,000 and $154,404,000 respectively, for reserve credits, reinsurance claims, and other receivables from its reinsurers. Life insurance in force ceded at December 31, 2013 and 2012, was $156,000 and $182,000, respectively.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

12. Guaranteed Benefit Features

The Company offers variable annuity contracts for which investment income and gains and losses on separate account investments accrue directly to, and the investment risk is borne by, the contract holder. As part of these variable annuity contracts, the Company provides guarantees for the benefit of annuity contract holders. The primary guarantees provided to annuity contract holders are the GMDB, GMWB, and GMIB.

The GMDB provides a specific minimum return upon death. The Company offers two primary GMDB types:

•	Return of premium death benefit provides the greater of account value or total deposits to the contract less any reductions due to partial withdrawals.

•	Step-up death benefit provides the greater of a return of premium death benefit or the largest account value on a specified policy anniversary that occurs prior to a specified age adjusted for withdrawals. Currently, the Company offers products where the specified policy anniversary is either annual or five-year. For most contracts, the GMDB locks in at an age specified in the contract (this age varies by product).

The following is a summary of the account values and net amount at risk, net of reinsurance, for variable annuity contracts with GMDB invested in both general and separate accounts as of December 31:

	2013						2012
	Account Value		Net Amount at Risk		Weighted- Average Attained Age		Account Value		Net Amount at Risk		Weighted- Average Attained Age
	(Dollars in Thousands)
Return of premium	$	78,759	$	723		66	$	75,839	$	1,779		65
Step-up		66,495		2,421		66		62,540		5,823		66
Total GMDB	$	145,254	$	3,144		66	$	138,379	$	7,602		66

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

12. Guaranteed Benefit Features (continued)

The liabilities for GMDBs on variable annuity contracts reflected in the general account as of December 31, 2013 and 2012, were $1,160,000 and $1,323,000, respectively. These liabilities are included in the policy reserves and annuity account values in the balance sheets. The GMWB and GMIB liabilities are 100% reinsured to SBL, so no net liabilities for these benefits are reflected in the general account as of December 31, 2013 and 2012. The Company’s GMDB and GMIB reserves are equal to the current benefit ratio multiplied by the cumulative assessments less cumulative excess death benefit payments plus accrued interest. The current benefit ratio is equal to the present value of excess payments divided by the present value of expected assessments.

The Company recalculates its GMDB, GMWB, and GMIB reserves at each reporting date, and the resulting change in liability is recognized in the income statement as benefit expense.

The Company regularly reviews the assumptions used in the GMDB, GMWB, and GMIB reserve calculations and adjusts the assumptions as actual experience or other evidence suggests that earlier assumptions should be revisited. The Company’s reserve calculation uses assumptions consistent with its deferred policy acquisition cost model.

The following assumptions were used to determine the GMDB and GMIB reserves as of December 31, 2013 and 2012:

	•	Data used was based on a combination of historical numbers and future projections involving 500 stochastic scenarios.

	•	Mean long-term gross blended separate account growth rate of 7.69% for 2013 and 8.5% for 2012.

	•	Long-term equity volatility of 18%.

	•	Long-term bond volatility of 5%.

	•	Mortality is 100% of Annuity 2000 table.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

12. Guaranteed Benefit Features (continued)

	•	Asset fees are equal to fund management fees and product loads (varies by product).

	•	Discount rate is equivalent to the credited rate (varies by product).

	•	Lapse rates vary by product and duration.

The following assumptions were used to determine the GMWB reserves classified under ASC Topic 820 as of December 31, 2013 and 2012:

	•	Data used was based on current market conditions and projections involving 1,000 risk-neutral stochastic scenarios.

	•	Mortality is 100% of Annuity 2000 table.

	•	Asset fees are equal to fund management fees and product loads (varies by product).

	•	Current volatility surface (3 months to 5 years) of 14% graded to 27% at year 5 for 2013 and 17% graded to 24% at year 5 for 2012, graded to the long-term average of 45% at end of projection year 60.

	•	Discount rate used is the current swap curve plus an option-adjusted spread from the Merrill Lynch corporate life insurance bond index with similar financial strength ratings.

	•	Policyholder lapse rates are set to 95% of the assumed base lapses.

13. Commitments and Contingencies

The Company has aggregate future lease commitments at December 31, 2013, of $12,000 for non-cancelable operating leases in 2014 and no amounts for the years thereafter. During the years ended December 31, 2013 and 2012, the Company paid $37,000 and $32,000 respectively, for office rent expense. This expense is included in commissions and other operating expenses in the statements of operations.

First Security Benefit Life Insurance and Annuity Company of New York

(An Indirect Wholly Owned Subsidiary of Guggenheim SBC Holdings, LLC)

Notes to Financial Statements (continued)

13. Commitments and Contingencies (continued)

Guaranty fund assessments are levied on the Company by the New York Guaranty Association to cover policyholder losses of insolvent or rehabilitated insurers. At December 31, 2013 and 2012, the Company has reserved $561,000 and $0, respectively, to cover current and estimated future assessments.

In the ordinary course of business, the Company is in discussions with its regulators about matters raised during regulatory examinations or otherwise subject to their inquiry. These matters could result in censures, fines, or other sanctions. Management believes the outcome of any resulting actions will not be material to the Company’s results of operations or financial condition. However, the Company is unable to predict the outcome of these matters.

Various legal proceedings and other matters have arisen in the ordinary course of the Company’s business. Management is of the opinion that the Company has substantial defenses with respect to these matters, and the Company’s ultimate liability, if any, resulting from such matters will not be material to its results of operations or its financial condition.

14. Subsequent Events

Subsequent events have been evaluated through April 4, 2014, which is the date the financial statements were issued. The Company has evaluated the impact of the events that have occurred subsequent to December 31, 2013. Based on this evaluation, the Company has determined that no events have occurred that were required to be recognized or disclosed in the financial statements.

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Financial Statements

T. Rowe Price Variable Annuity Account of First Security Benefit Life Insurance and Annuity Company of New York

Year Ended December 31, 2013

With Report of Independent Registered Public Accounting Firm

T. Rowe Price Variable Annuity Account of First Security Benefit Life Insurance and Annuity Company of New York

Financial Statements

Year Ended December 31, 2013

Contents

Report of Independent Registered Public Accounting Firm	1
Audited Financial Statements
Statements of Net Assets	3
Statements of Operations	5
Statements of Changes in Net Assets	7
Notes to Financial Statements	11
1. Organization and Significant Accounting Policies	11
2. Variable Annuity Contract Charges	13
3. Summary of Unit Transactions	13
4. Financial Highlights	14
5. Subsequent Events	15

Report of Independent Registered Public Accounting Firm

The Board of Directors and Contract Owners

First Security Benefit Life Insurance Company

We have audited the accompanying statements of net assets of T. Rowe Price Variable Annuity Account of First Security Benefit Life Insurance and Annuity Company of New York (the Account), a separate account of First Security Benefit Life Insurance and Annuity Company of New York comprised of the subaccounts as listed in Note 1, as of December 31, 2013, the related statements of operations for the year or period then ended, and the statements of changes in net assets for each of the two years or periods then ended. These financial statements are the responsibility of the Account's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Account’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Account’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of investments owned as of December 31, 2013, by correspondence with the fund companies or their transfer agents. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each of the subaccounts constituting T. Rowe Price Variable Annuity Account of First Security Benefit Life Insurance and Annuity Company of New York at December 31, 2013, and the results of their operations and the changes in their net assets for the periods described above, in conformity with U.S. generally accepted accounting principles.

/s/ Ernst & Young LLP

April 30, 2014

T. Rowe Price Variable Annuity Account of First Security Benefit Life Insurance and Annuity Company of New York

Statements of Net Assets

December 31, 2013

	New America Growth		Mid-Cap Growth		Equity Income		Personal Strategy Balanced		Blue Chip Growth
Assets:
Mutual funds, at market value	$	3,443,663	$	8,095,167	$	6,203,990	$	3,789,434	$	619,177
Net assets	$	3,443,663	$	8,095,167	$	6,203,990	$	3,789,434	$	619,177

Net assets:
Accumulation assets		3,443,663		8,084,526		6,181,919		3,756,529		619,177
Annuity assets		-		10,641		22,071		32,905		-
Net assets	$	3,443,663	$	8,095,167	$	6,203,990	$	3,789,434	$	619,177

Units outstanding:
Total units		79,146		145,261		124,422		86,330		34,256
Unit value	$	43.51	$	55.72	$	49.85	$	43.89	$	18.04

Mutual funds, at cost	$	2,777,104	$	6,052,729	$	4,371,388	$	3,174,063	$	367,514
Mutual fund shares		129,607		292,244		218,066		177,658		32,623

The accompanying notes are an integral part of these financial statements.

T. Rowe Price Variable Annuity Account of First Security Benefit Life Insurance and Annuity Company of New York

Statements of Net Assets (continued)

December 31, 2013

	Health Sciences		Equity Index 500		Limited-Term Bond		Prime Reserve		International Stock
Assets:
Mutual funds, at market value	$	2,755,220	$	558,072	$	907,149	$	462,732	$	1,935,066
Net assets	$	2,755,220	$	558,072	$	907,149	$	462,732	$	1,935,066

Net assets:
Accumulation assets		2,755,220		555,558		892,747		462,732		1,933,735
Annuity assets		-		2,514		14,402		-		1,331
Net assets	$	2,755,220	$	558,072	$	907,149	$	462,732	$	1,935,066

Units outstanding:
Total units		83,069		34,640		45,493		32,988		81,950
Unit value	$	33.17	$	16.12	$	19.93	$	14.02	$	23.62

Mutual funds, at cost	$	1,458,293	$	390,256	$	922,492	$	462,732	$	1,763,493
Mutual fund shares		89,893		39,777		184,755		462,732		123,096

The accompanying notes are an integral part of these financial statements.

T. Rowe Price Variable Annuity Account of First Security Benefit Life Insurance and Annuity Company of New York

Statements of Operations

Year Ended December 31, 2013

	New America Growth			Mid-Cap Growth			Equity Income			Personal Strategy Balanced			Blue Chip Growth
Investment income (loss):
Dividend distributions	$	-		$	-		$	89,240		$	53,598		$	167
Expenses:
Mortality and expense risk charge		(16,669	)		(39,361	)		(32,164	)		(19,364	)		(2,932	)
Net investment income (loss)		(16,669	)		(39,361	)		57,076			34,234			(2,765	)

Net realized and unrealized capital gain (loss) on investments:
Capital gain distributions		507,745			625,350			-			226,175			-
Realized capital gain (loss) on investments		62,844			115,477			178,649			31,055			24,648
Change in unrealized appreciation/depreciation on investments during the year		417,496			1,471,359			1,243,348			268,089			161,775
Net realized and unrealized capital gain (loss) on investments		988,085			2,212,186			1,421,997			525,319			186,423
Net increase (decrease) in net assets from operations	$	971,416		$	2,172,825		$	1,479,073		$	559,553		$	183,658

The accompanying notes are an integral part of these financial statements.

T. Rowe Price Variable Annuity Account of First Security Benefit Life Insurance and Annuity Company of New York

Statements of Operations (continued)

Year Ended December 31, 2013

	Health Sciences			Equity Index 500			Limited-Term Bond			Prime Reserve			International Stock
Investment income (loss):
Dividend distributions	$	-		$	8,515		$	15,586		$	-		$	15,816
Expenses:
Mortality and expense risk charge		(12,262	)		(2,664	)		(5,536	)		(2,634	)		(10,858	)
Net investment income (loss)		(12,262	)		5,851			10,050			(2,634	)		4,958

Net realized and unrealized capital gain (loss) on investments:
Capital gain distributions		112,060			-			-			19			-
Realized capital gain (loss) on investments		35,678			1,475			(3,600	)		-			14,327
Change in unrealized appreciation/depreciation on investments during the year		727,486			121,914			(10,584	)		-			230,246
Net realized and unrealized capital gain (loss) on investments		875,224			123,389			(14,184	)		19			244,573
Net increase (decrease) in net assets from operations	$	862,962		$	129,240		$	(4,134	)	$	(2,615	)	$	249,531

The accompanying notes are an integral part of these financial statements.

T. Rowe Price Variable Annuity Account of First Security Benefit Life Insurance and Annuity Company of New York

Statements of Changes in Net Assets

Years Ended December 31, 2013 and 2012

	New America Growth						Mid-Cap Growth						Equity Income
	2013			2012			2013			2012			2013			2012
Increase (decrease) in net assets:
From operations:
Net investment income (loss)	$	(16,669	)	$	(1,507	)	$	(39,361	)	$	(34,420	)	$	57,076		$	82,699
Capital gains distributions		507,745			16,036			625,350			570,273			-			-
Realized capital gain (loss) on sales of fund shares		62,844			7,320			115,477			79,768			178,649			16,965
Change in unrealized appreciation/ depreciation on investments during the year		417,496			273,277			1,471,359			148,415			1,243,348			678,767
Net increase (decrease) in net assets from operations		971,416			295,126			2,172,825			764,036			1,479,073			778,431

From contract owner transactions:
Variable annuity deposits		16,712			39,432			160,511			18,618			77,199			124,900
Terminations and withdrawals		(56,069	)		(63,965	)		(290,327	)		(411,248	)		(220,196	)		(172,476	)
Annuity payments		-			-			(697	)		(593	)		(1,493	)		(1,266	)
Transfers between subaccounts, net		(113,014	)		(9,163	)		(132,306	)		(64,051	)		(495,656	)		(214,078	)
Mortality adjustments		-			-			98			(145	)		202			(303	)
Net increase (decrease) in net assets from contract owner transactions		(152,371	)		(33,696	)		(262,721	)		(457,419	)		(639,944	)		(263,223	)
Net increase (decrease) in net assets		819,045			261,430			1,910,104			306,617			839,129			515,208
Net assets at beginning of year		2,624,618			2,363,188			6,185,063			5,878,446			5,364,861			4,849,653
Net assets at end of year	$	3,443,663		$	2,624,618		$	8,095,167		$	6,185,063		$	6,203,990		$	5,364,861

The accompanying notes are an integral part of these financial statements.

T. Rowe Price Variable Annuity Account of First Security Benefit Life Insurance and Annuity Company of New York

Statements of Changes in Net Assets (continued)

Years Ended December 31, 2013 and 2012

	Personal Strategy Balanced						Blue Chip Growth						Health Sciences
	2013			2012			2013			2012			2013			2012
Increase (decrease) in net assets:
From operations:
Net investment income (loss)	$	34,234		$	42,253		$	(2,765	)	$	(1,673	)	$	(12,262	)	$	(7,354	)
Capital gains distributions		226,175			84,787			-			-			112,060			27,779
Realized capital gain (loss) on sales of fund shares		31,055			26,929			24,648			16,945			35,678			16,748
Change in unrealized appreciation/ depreciation on investments during the year		268,089			241,771			161,775			51,550			727,486			299,569
Net increase (decrease) in net assets from operations		559,553			395,740			183,658			66,822			862,962			336,742

From contract owner transactions:
Variable annuity deposits		49,445			14,813			8,100			10,185			25,272			7,711
Terminations and withdrawals		(152,425	)		(162,310	)		(16,066	)		(9,019	)		(6,802	)		(16,303	)
Annuity payments		(2,296	)		(2,095	)		-			-			-			-
Transfers between subaccounts, net		220,080			110,965			(5,233	)		6,857			443,196			37,088
Mortality adjustments		316			(525	)		-			-			-			-
Net increase (decrease) in net assets from contract owner transactions		115,120			(39,152	)		(13,199	)		8,023			461,666			28,496
Net increase (decrease) in net assets		674,673			356,588			170,459			74,845			1,324,628			365,238
Net assets at beginning of year		3,114,761			2,758,173			448,718			373,873			1,430,592			1,065,354
Net assets at end of year	$	3,789,434		$	3,114,761		$	619,177		$	448,718		$	2,755,220		$	1,430,592

The accompanying notes are an integral part of these financial statements.

T. Rowe Price Variable Annuity Account of First Security Benefit Life Insurance and Annuity Company of New York

Statements of Changes in Net Assets (continued)

Years Ended December 31, 2013 and 2012

	Equity Index 500						Limited-Term Bond						Prime Reserve
	2013			2012			2013			2012			2013			2012
Increase (decrease) in net assets:
From operations:
Net investment income (loss)	$	5,851		$	5,784		$	10,050		$	17,910		$	(2,634	)	$	(3,590	)
Capital gains distributions		-			-			-			2,385			19			-
Realized capital gain (loss) on sales of fund shares		1,475			19,810			(3,600	)		(209	)		-			-
Change in unrealized appreciation/ depreciation on investments during the year		121,914			43,574			(10,584	)		2,407			-			-
Net increase (decrease) in net assets from operations		129,240			69,168			(4,134	)		22,493			(2,615	)		(3,590	)

From contract owner transactions:
Variable annuity deposits		2,229			120			5,045			17,539			1,420			1,335
Terminations and withdrawals		-			-			(68,113	)		(102,606	)		(34,124	)		(321,563	)
Annuity payments		(167	)		(145	)		(1,100	)		(1,133	)		-			-
Transfers between subaccounts, net		41,063			(197,484	)		(216,429	)		79,985			(98,725	)		228,972
Mortality adjustments		23			(40	)		152			(290	)		-			-
Net increase (decrease) in net assets from contract owner transactions		43,148			(197,549	)		(280,445	)		(6,505	)		(131,429	)		(91,256	)
Net increase (decrease) in net assets		172,388			(128,381	)		(284,579	)		15,988			(134,044	)		(94,846	)
Net assets at beginning of year		385,684			514,065			1,191,728			1,175,740			596,776			691,622
Net assets at end of year	$	558,072		$	385,684		$	907,149		$	1,191,728		$	462,732		$	596,776

The accompanying notes are an integral part of these financial statements.

T. Rowe Price Variable Annuity Account of First Security Benefit Life Insurance and Annuity Company of New York

Statements of Changes in Net Assets (continued)

Years Ended December 31, 2013 and 2012

	International Stock
	2013			2012
Increase (decrease) in net assets:
From operations:
Net investment income (loss)	$	4,958		$	13,904
Capital gains distributions		-			-
Realized capital gain (loss) on sales of fund shares		14,327			(9,066	)
Change in unrealized appreciation/ depreciation on investments during the year		230,246			300,455
Net increase (decrease) in net assets from operations		249,531			305,293

From contract owner transactions:
Variable annuity deposits		39,541			20,995
Terminations and withdrawals		(114,529	)		(55,482	)
Annuity payments		(94	)		(86	)
Transfers between subaccounts, net		(247,127	)		6,022
Mortality adjustments		13			(22	)
Net increase (decrease) in net assets from contract owner transactions		(322,196	)		(28,573	)
Net increase (decrease) in net assets		(72,665	)		276,720
Net assets at beginning of year		2,007,731			1,731,011
Net assets at end of year	$	1,935,066		$	2,007,731

The accompanying notes are an integral part of these financial statements.

T. Rowe Price Variable Annuity Account of

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements

December 31, 2013

1. Organization and Significant Accounting Policies

T. Rowe Price Variable Annuity Account of First Security Benefit Life Insurance and Annuity Company of New York (the Account) is a separate account of First Security Benefit Life Insurance and Annuity Company of New York (FSBL). The Account is registered as a unit investment trust under the Investment Company Act of 1940, as amended. As directed by the owners, amounts may be invested in a designated mutual fund as follows:

Mutual Fund	Class	Investment Adviser	Sub-Adviser
T. Rowe Price New America Growth	-	T. Rowe Price Associates, Inc.	-
T. Rowe Price Mid-Cap Growth	Institutional	T. Rowe Price Associates, Inc.	-
T. Rowe Price Equity Income	-	T. Rowe Price Associates, Inc.	-
T. Rowe Price Personal Strategy Balanced	-	T. Rowe Price Associates, Inc.	-
T. Rowe Price Blue Chip Growth	-	T. Rowe Price Associates, Inc.	-
T. Rowe Price Health Sciences	-	T. Rowe Price Associates, Inc.	-
T. Rowe Price Equity Index 500	-	T. Rowe Price Associates, Inc.	-
T. Rowe Price Limited-Term Bond	-	T. Rowe Price Associates, Inc.	-
T. Rowe Price Prime Reserve	-	T. Rowe Price Associates, Inc.	-
T. Rowe Price International Stock	-	T. Rowe Price Associates, Inc.	T. Rowe Price International Limited

Ten subaccounts are currently offered by the Separate Account, all of which had activity.

Under applicable insurance law, the assets and liabilities of the Account are clearly identified and distinguished from FSBL’s other assets and liabilities. The portion of the Account’s assets applicable to the variable annuity contracts is not chargeable with liabilities arising out of any other business FSBL may conduct.

T. Rowe Price Associates, Inc. (T. Rowe Price) serves as the investment advisor to each portfolio, except the T. Rowe Price International Stock Portfolio. T. Rowe Price International, Inc., an affiliate of T. Rowe Price, serves as investment advisor to the T. Rowe Price International Stock Portfolio. The investment advisors are responsible for managing the portfolios’ assets in accordance with the terms of the investment advisory contracts.

Investment Valuation

Investments in mutual fund shares are carried in the statement of net assets at market value (net asset value of the underlying mutual fund). Investment transactions are accounted for on the trade date. Realized capital gains and losses on sales of investments are determined based on the average cost of investments sold. The difference between cost and current market value of investments owned on the day of measurement is recorded as unrealized appreciation or depreciation of investments.

The cost of investment purchases and proceeds from investments sold for the year ended December 31, 2013, were as follows:

Subaccount	Cost of Purchases	Proceeds from Sales

New America Growth	$578,661	$239,956
Mid-Cap Growth	914,692	591,424
Equity Income	244,033	826,901
Personal Strategy Balanced	554,624	179,095
Blue Chip Growth	71,115	87,079
Health Sciences	639,717	78,253
Equity Index 500	55,179	6,180
Limited-Term Bond	100,173	370,568
Prime Reserve	35,889	169,933
International Stock	84,913	402,151

T. Rowe Price Variable Annuity Account of

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

1. Organization and Significant Accounting Policies (continued)

Annuity Reserves

Annuity reserves relate to contracts that have matured and are in the payout stage. Such reserves are computed on the basis of published mortality tables using assumed interest rates that will provide reserves as prescribed by law. In cases where the payout option selected is life contingent, FSBL periodically recalculates the required annuity reserves, and any resulting adjustment is either charged or credited to FSBL and not to the Account.

Reinvestment of Dividends

Dividend and capital gains distributions paid by the mutual fund to the Account are reinvested in additional shares of each respective fund. Dividend income and capital gains distributions are recorded as income on the ex-dividend date.

Federal Income Taxes

The operations of the Account are included in the federal income tax return of FSBL, which is taxed as a life insurance company under the provisions of the Internal Revenue Code (IRC). Under the current provisions of the IRC, FSBL does not expect to incur federal income taxes on the earnings of the Account to the extent the earnings are credited under contracts. Based on this, no charge is being made currently to the Account for federal income taxes. FSBL will review periodically the status of this policy in the event of changes in the tax law.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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.

Recently Issued Accounting Standards

In June 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-08, Financial Services - Investment Companies Measurement, and Disclosure Requirements, which provides comprehensive guidance for assessing whether an entity is an investment company and requires an investment company to measure noncontrolling ownership interests in other investment companies at fair value. ASU 2013-08 also requires an entity to disclose that it is an investment company and any changes to that status, as well as information about financial support provided or required to be provided to investees. The provisions of ASU 2013-08 are effective for interim and annual reporting periods in years beginning after December 15, 2013, and should be applied prospectively for entities that are investment companies upon the effective date of the amendments. The Account is currently in the process of assessing the requirements of ASU 2013-08, but does not expect ASU 2013-08 to have an impact on its net assets or results of operations.

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels:

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 – Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 – Unobservable inputs for the asset or liability reflecting internal assumptions.

T. Rowe Price Variable Annuity Account of

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

1. Organization and Significant Accounting Policies (continued)

The Account invests in shares of open-end mutual funds, which process contract owner-directed purchases, sales and transfers on a daily basis at the fund’s 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 and is based on the fair values of the underlying securities.

Because the fund provides liquidity for the investments through purchases and redemptions at NAV, this may represent the fair value of the investment in the fund. That is, for an open-ended mutual fund, the fair value of an investment in the fund would not be expected to be higher than the amount that a new investor would be required to spend in order to directly invest in the mutual fund. Similarly, the hypothetical seller of the investment would not be expected to accept less in proceeds than it could receive by directly redeeming its investment with the fund. As a result, management considers, the quoted NAV of the mutual fund to be quoted prices in active markets.

The Account’s financial assets are recorded at fair value on the statements of net assets and are categorized as Level 1 as of December 31, 2013, based on the priority of the inputs to the valuation technique above. There were no transfers between levels during the year ended December 31, 2013. The Account had no financial liabilities as of December 31, 2013.

2. Variable Annuity Contract Charges

Mortality and expense risks assumed by FSBL are compensated for by a fee equivalent to an annual rate of 0.55% of the average daily net assets of each account.

When applicable, an amount for state premium taxes is deducted as provided by pertinent state law either from purchase payments or from the amount applied to effect an annuity at the time annuity payments commence.

3. Summary of Unit Transactions

The changes in units outstanding for the periods December 31, 2013 and 2012, were as follows:

	2013								2012
Subaccount	Units Issued		Units Redeemed			Net Increase (Decrease)			Units Issued		Units Redeemed			Net Increase (Decrease)
New America Growth		2,275		(5,921	)		(3,646	)		2,826		(3,897	)		(1,071	)
Mid-Cap Growth		6,743		(12,358	)		(5,615	)		1,802		(13,355	)		(11,553	)
Equity Income		4,149		(18,536	)		(14,387	)		4,834		(12,215	)		(7,381	)
Personal Strategy Balanced		7,802		(4,693	)		3,109			6,646		(7,812	)		(1,166	)
Blue Chip Growth		5,176		(5,770	)		(594	)		7,790		(7,090	)		700
Health Sciences		20,809		(2,452	)		18,357			3,898		(2,159	)		1,739
Equity Index 500		3,492		(264	)		3,228			381		(17,082	)		(16,701	)
Limited-Term Bond		4,409		(18,434	)		(14,025	)		7,672		(7,992	)		(320	)
Prime Reserve		2,647		(11,974	)		(9,327	)		17,733		(24,189	)		(6,456	)
International Stock		4,466		(18,956	)		(14,490	)		2,664		(4,161	)		(1,497	)

T. Rowe Price Variable Annuity Account of

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

4. Financial Highlights

A summary of units outstanding, unit values, net assets, expense ratios, investment income ratios and total return ratios for each of the five years in the period ended December 31, 2013, were as follows:

Subaccount	Units		Unit Values ($)(4)		Net Assets ($)		Investment Income Ratios (%)(1)		Expense Ratios (%)(2)		Total Returns (%)(3)(4)
New America Growth
2013		79,146		43.51		3,443,663		-		0.55		37.26
2012		82,792		31.70		2,624,618		0.51		0.55		12.49
2011		83,863		28.18		2,363,188		0.22		0.55		(1.61	)
2010		87,713		28.64		2,512,269		0.19		0.55		18.99
2009		89,608		24.07		2,156,878		-		0.55		48.95
Mid-Cap Growth
2013		145,261		55.72		8,095,167		-		0.55		35.94
2012		150,876		40.99		6,185,063		-		0.55		13.29
2011		162,429		36.18		5,878,446		-		0.55		(1.82	)
2010		168,128		36.85		6,197,126		-		0.55		27.42
2009		176,349		28.92		5,101,618		-		0.55		44.82
Equity Income
2013		124,422		49.85		6,203,990		1.54		0.55		29.01
2012		138,809		38.64		5,364,861		2.17		0.55		16.49
2011		146,190		33.17		4,849,653		1.76		0.55		(1.25	)
2010		153,963		33.59		5,172,683		1.85		0.55		14.37
2009		159,050		29.37		4,671,438		1.85		0.55		24.93
Personal Strategy Balanced
2013		86,330		43.89		3,789,434		1.55		0.55		17.26
2012		83,221		37.43		3,114,761		2.00		0.55		14.53
2011		84,387		32.68		2,758,173		2.12		0.55		(0.88	)
2010		85,330		32.97		2,813,554		2.27		0.55		13.07
2009		90,158		29.16		2,628,803		2.06		0.55		31.41
Blue Chip Growth
2013		34,256		18.04		619,177		0.03		0.55		40.39
2012		34,850		12.85		448,718		0.16		0.55		17.57
2011		34,150		10.93		373,873		-		0.55		1.02
2010		35,168		10.82		381,337		-		0.55		15.72
2009		43,566		9.35		407,957		-		0.55		41.45
Health Sciences
2013		83,069		33.17		2,755,220		-		0.55		50.02
2012		64,712		22.11		1,430,592		-		0.55		30.67
2011		62,973		16.92		1,065,354		-		0.55		10.01
2010		60,690		15.38		933,269		-		0.55		15.03
2009		54,744		13.37		732,065		-		0.55		30.82
Equity Index 500
2013		34,640		16.12		558,072		1.80		0.55		31.27
2012		31,412		12.28		385,684		1.84		0.55		14.87
2011		48,113		10.69		514,065		1.62		0.55		1.33
2010		51,862		10.55		547,173		1.62		0.55		13.93
2009		51,185		9.26		473,886		1.87		0.55		25.30

T. Rowe Price Variable Annuity Account of

First Security Benefit Life Insurance and Annuity Company of New York

Notes to Financial Statements (continued)

4. Financial Highlights (continued)

Subaccount

Units

Unit Values

($)(4)

Net Assets

($)

Investment

Income Ratios

(%)(1)

Expense

Ratios

(%)(2)

Total

Returns

(%)(3)(4)

Limited-Term Bond
2013	45,493	19.93	907,149	1.49	0.55	(0.45	)
2012	59,518	20.02	1,191,728	2.07	0.55	1.93
2011	59,838	19.64	1,175,740	2.32	0.55	1.03
2010	63,849	19.44	1,241,609	3.05	0.55	2.53
2009	58,385	18.96	1,107,356	3.53	0.55	7.67
Prime Reserve
2013	32,988	14.02	462,732	-	0.55	(0.57	)
2012	42,315	14.10	596,776	-	0.55	(0.56	)
2011	48,771	14.18	691,622	-	0.55	(0.49	)
2010	44,382	14.25	632,828	0.12	0.55	(0.42	)
2009	67,890	14.31	972,022	0.48	0.55	(0.21	)
International Stock
2013	81,950	23.62	1,935,066	0.80	0.55	13.45
2012	96,440	20.82	2,007,731	1.30	0.55	17.76
2011	97,937	17.68	1,731,011	1.58	0.55	(13.29	)
2010	101,295	20.39	2,065,399	0.86	0.55	13.78
2009	106,573	17.92	1,909,110	2.68	0.55	51.61

(1)

These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that result in direct reductions in the unit values. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccount invests.

(2)

These ratios represent the annualized contract expenses of the Account, consisting primarily of mortality and expense charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying fund are excluded.

(3)

These amounts represent the total return for the periods indicated, including changes in the value of the underlying fund, and reflect deductions for all items included in the expense ratio. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented.

(4)	Unit value information is calculated on a daily basis regardless of whether or not the subaccount has contractholders.

5. Subsequent Events

The Account has performed an evaluation of subsequent events through the date the financial statements were issued and has determined that no items require recognition or disclosure.

Name	Jurisdiction	Percent of Voting Securities Owned
1888 Fund, Ltd	CYM	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
1900 Capital, Inc.	DE	100%	by Compatriot Capital, Inc.
5180 CLO LP	DE	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
7100 Holdings, LLC	DE	100%	by EquiTrust Life Insurance Company
A24 Films, LLC	DE	66.7%	by SBC Funding, LLC
ACEI Holdco, LLC (fka IIP Bridge Funding, LLC)	DE	100%	by GPFT Holdco, LLC
ACEIG, LLC	DE	100%	by Guggenheim Capital Enterprises, LLC
Advisor Research Center, LLC	MD	100%	by Rydex Fund Services, LLC
AF V, LLC	DE	100%	by Corporate Funding VI, LLC
AF VI, LLC	DE	100%	by Corporate Funding VI, LLC
AF VII, LLC	DE	100%	by Corporate Funding VI, LLC
AFSP Fund I Partners, LLC	DE	53.6%	by Compatriot Capital, Inc.
Aircraft Mgmt. Company, LLC	DE	100%	by GPFT Holdco, LLC
Ann Arbor City Apartments LLC	DE	90%	by Compatriot Capital, Inc.
Ann Arbor City Apartments LLC	DE	10%	by Village Green Holding LLC
Argus Portfolios Holdings Ltd.	CYM	0%	Mgmt. by Guggenheim Partners, LLC
Argus Portfolios SPC	CYM	100%	by Argus Portfolios Holdings Ltd.
ASG Mortgage Investors, LLC	DE	35.3%	by 1900 Capital, Inc.
Asheville Resolution Corporation	DE	100%	by Consolidated Investment Services, Inc.
Asset Consulting Group, LLC	DE	100%	by GWM Holdco, LLC
Astoria InvestCo Holdings, LLC	DE	100%	by Security Benefit Life Insurance Company
Astoria InvestCo, LLC	DE	50%	by Astoria InvestCo Holdings, LLC
Aureus Group, LLC	DE	29.9%	by Compatriot Capital, Inc.
Ballinshire investment entities	DE	100%	by EL Funding, LLC
Bennington Stark Capital Company, LLC	DE	100%	by The Liberty Hampshire Company, LLC
BFC Capital Company, LLC	DE	100%	by The Liberty Hampshire Company, LLC
Bingham LP	DE	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
Bismarck Development Company, LLC	DE	100%	by Guggenheim Retail Real Estate Partners, Inc.
Bound Brook Capital Corporation	DE	100%	by The Liberty Hampshire Company, LLC
Briggs Construction Equipment, Inc.	DE	100%	Consolidated Investment Services, Inc.
Briggs Equipment Mexico, Inc.	DE	100%	by Briggs Equipment, Inc.
Briggs Equipment UK Limited	GBR	100%	by Briggs UK Holdings, Inc.
Briggs Equipment, Inc.	DE	100%	by Briggs International, Inc.
Briggs Equipment, S.A. de C.V.	MEX	99%	by Briggs Equipment, Inc.
Briggs Equipment, S.A. de C.V.	MEX	1%	Briggs Equipment Mexico, Inc.
Briggs International, Inc.	DE	100%	by Consolidated Investment Services, Inc.

Name

Jurisdiction

Percent of Voting Securities Owned

Briggs UK Holdings, Inc.	DE	100%	by Consolidated Investment Services, Inc.
Cainhoy Land & Timber, LLC	DE	65.5%	by GC Parent Holdings, LLC
California Reverse Mortgage Co.	CA	100%	by Generation Financial Mortgage, LLC
Caprock Funding entities	DE	100%	by LCLF investment entities
Carco Services, LLC	DE	100%	by Guggenheim Services, LLC
CCE Funding LLC	DE	100%	by Compatriot Capital, Inc.
Cedar Springs (Cayman) Ltd.	CYM	100%	by Cedar Springs Capital Company, LLC
Cedar Springs Capital Company, LLC	DE	100%	by The Liberty Hampshire Company, LLC
CF-G Funding, LLC	DE	100%	by Gennessee Insurance Agency, LLC
Channel Capital Group Holdings, LLC	DE	38.3%	by Nominee Holding Company, LLC
Channel Capital Group LLC	DE	100%	by Channel Capital Group Holdings, LLC
Chelsea Creek Capital Company, LLC	DE	100%	by The Liberty Hampshire Company, LLC
Cohen Financial Services (DE), LLC	DE	100%	by Pillar Financial, LLC
Compatriot Capital, Inc.	DE	100%	by Sammons Equity Alliance, Inc.
Concord Minutemen (Cayman) Ltd.	CYM	100%	by Concord Minutemen Capital Company, LLC
Concord Minutemen Capital Company, LLC	DE	100%	by The Liberty Hampshire Company, LLC
Consolidated Investment Services, Inc.	NV	100%	by Sammons Enterprises, Inc.
Controladora Briggs de Mexico S. de R.L. de C.V.	MEX	99%	by Briggs Equipment, Inc.
Controladora Briggs de Mexico S. de R.L. de C.V.	MEX	1%	by Briggs Equipment Mexico, Inc.
Copper River CLO Ltd	CYM	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
Corporate Funding V, LLC	DE	100%	by GPFT Holdco, LLC
Corporate Funding VI, LLC	DE	100%	by GPFT Holdco, LLC
Corporate Funding VIII, LLC	DE	100%	by SL Funding, LLC
CP Aureus FSP, LP	DE	49.5%	by AFSP Fund I Partners, LLC
Crown Point Capital Company, LLC	DE	100%	by The Liberty Hampshire Company, LLC
Crown Point Funding (Cayman), Ltd.	CYM	100%	by Crown Point Capital Company, LLC
CSFC, LLC	DE	100%	by The Liberty Hampshire Company, LLC
DBI/ASG Mortgage Acquisition Fund I, LP	DE	55.4%	by 1900 Capital, Inc.
dcp Funding LLC	DE	27.8%	by Guggenheim Life and Annuity Company
dcp Funding LLC	DE	0%	Mgmt. by Guggenheim Corporate Funding, LLC
Deferred Compensation investment entities	DE	36%-100%	by GC Deferred Compensation I, LLC
dick clark entities	DE	100%	by dcp Funding LLC
DLPG, LLC	DE	100%	by Guggenheim Insurance Holdco, LLC
Dunbarre Insurance Agency, LLC	DE	100%	by Security Benefit Life Insurance Company
E2 CTA Portfolio Limited	CYM	100%	by The Liberty Hampshire Company, LLC
E2M Fund II Holdco, LP	DE	47.8%	by Compatriot Capital, Inc.; Mgmt. by E2M General Partner II, LLC
E2M General Partner II, LLC	DE	17.4%	by Compatriot Capital, Inc.
E2M General Partner III, LLC	DE	30%	by Compatriot Capital, Inc.
E2M Holdings, LLC	DE	30%	by Compatriot Capital, Inc.
E2M Partners, LLC	DE	100%	by E2M Holdings, LLC
E2M Strategic Fund (Fund A), LP	DE	80.5%	by Compatriot Capital, Inc.; Mgmt. by E2M General Partner III, LLC
E2M/SRC Investment Company, LLC	DE	37%	by Compatriot Capital, Inc.
E2M/SRC Investment Company, LLC	DE	60%	by E2M Fund II Holdco, LP
Edenton Funding, LLC	DE	100%	by Elsmere Insurance Agency, LLC
Edgehill Byron Capital Company Limited	IRL	0%	Mgmt. by Guggenheim Partners, LLC
EFC Holdings investment entities	DE	100%	by GPFT Holdco, LLC
Efland Funding, LLC	DE	100%	by Elsmere Insurance Agency, LLC

Name

Jurisdiction

Percent of Voting Securities Owned

EHC Funding, LLC	DE	100%	by EquiTrust Holdco Parent, LLC
Eiger Fund I, LP	DE	38.8%	by Compatriot Capital, Inc.
Eiger Partners, LP	DE	10%	by Compatriot Capital, Inc.
EL Funding, LLC	DE	100%	by SL Funding, LLC
ELSL Funding, LLC	DE	100%	by Elsmere Insurance Agency, LLC
Elsmere Insurance Agency, LLC	DE	100%	by Guggenheim Life and Annuity Company
Energy Asset Holdings LLC	DE	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
Enterhealth, LLC	TX	21.3%	by Sammons Capital, Inc.
EquiTrust GBM Investco, LLC	DE	100%	by EquiTrust Life Insurance Company
EquiTrust Holdco Parent II, LLC	DE	30%	by Guggenheim Insurance Holdco, LLC; Mgmt. by Guggenheim Insurance Holdco, LLC
EquiTrust Holdco Parent, LLC	DE	100%	by EquiTrust Holdco Parent II, LLC; Mgmt. by EquiTrust Manager, LLC
EquiTrust Holdings, LLC	DE	100%	by EquiTrust Holdco Parent, LLC
EquiTrust Insurance Services, LLC	DE	100%	by Guggenheim Insurance Services, LLC
EquiTrust Life Insurance Company	IL	100%	by EquiTrust Holdings, LLC
EquiTrust Manager, LLC	DE	100%	by Guggenheim Insurance Holdco, LLC
Eventine Funding, LLC	DE	100%	by Elsmere Insurance Agency, LLC
First Security Benefit Life Insurance and Annuity Company of New York	NY	100%	by Security Benefit Corporation
Forklift Operations de Mexico, S.A. de C.V.	MEX	99%	by Controladora Briggs de Mexico S. de R.L. de C.V.
Forklift Operations de Mexico, S.A. de C.V.	MEX	1%	by Briggs Equipment Mexico, Inc.
Forrestal Portfolios, LLC	DE	100%	by Moore's Creek Capital Corporation
Franklin Park (Cyprus) Limited	CYP	100%	by GGIC IIP Holdings LP
Franklin Park India, LLC	DE	100%	by Infrastructure India Plc
GAAFS Holdings, LLC	DE	100%	by Guggenheim Advisors, LLC
GAIF II Aviation U.S. Source Asset Holding Companies	DE	100%	by Guggenheim Aviation Investment Fund II, LP
GAIF II Aviation Asset Holding Companies	DE	100%	by GAIF II U.S. Source Fund, LP
GAIF II FF Feeder Fund, L.P.	DE	0%	Mgmt. by Guggenheim Aviation Services II, LLP
GAIF II Services Group, LLC	DE	100%	by Guggenheim Aviation Investment Fund II, LP
GAIF II U.S. Source Blocker, LP	DE	0%	Mgmt. by Guggenheim Aviation Services II, LLP
GAIF II U.S. Source Fund, LP	DE	0%	Mgmt. by Guggenheim Aviation Services II, LLP
GAIF II U.S. Source Services Group, LLC	DE	100%	by GAIF II U.S. Source Fund, LP
GASG Co-Investor Fund I, LP	DE	50%	by 1900 Capital, Inc.
GBH Venture Co., Inc.	DE	100%	by Consolidated Investment Services, Inc.
GC Deferred Compensation I, LLC	DE	100%	by Guggenheim Capital, LLC
GC Deferred Compensation Offshore, Ltd.	CYM	100%	by Guggenheim Capital International, Ltd.
GC Maple Leaf, Inc.	DE	100%	by Guggenheim Partners Investment Mgmt. Holdings, LLC
GC New York, LLC	DE	99.5%	by GC Parent Holdings, LLC
GC Orpheus Investors, LLC	DE	20.2%	by Guggenheim Partners, LLC
GC Parent Holdings, LLC	DE	100%	by Guggenheim Capital, LLC
GC Pilar Golf Investment, LLC	DE	100%	by GC Parent Holdings, LLC
GC Repo, LLC	DE	100%	by Guggenheim Partners, LLC
GC VIE Manager, LLC	DE	99.5%	by Guggenheim Partners, LLC
GDP property holding entities	DE	100%	by Guggenheim Development Partners, Inc.
GDP-Pilara Lotes, LLC	DE	100%	by GC Parent Holdings, LLC
GEIF GP, LLC	DE	99.5%	by Guggenheim Partners, LLC
Generation Financial Group, LLC	DE	50%	by JLx3, LLC
Generation Financial Group, LLC	DE	50%	by Guggenheim Partners, LLC

Name

Jurisdiction

Percent of Voting Securities Owned

Generation Financial Mortgage, LLC	DE	66.9%	by GPFT Holdco, LLC
Generation Financial Mortgage, LLC	DE	25.8%	by Generation Financial Group, LLC
Generation Mortgage Company	CA	100%	by Generation Financial Mortgage, LLC
Gennessee Insurance Agency, LLC	DE	100%	by Security Benefit Life Insurance Company
GFP Green Inc.	CYM	100%	by GGIC, Ltd.
GFP Peru Dunas Holdings, Inc.	CYM	100%	by GGIC, Ltd.
GFP Wind Holdings, LLC	DE	100%	by Guggenheim Franklin Park Management, LLC
GFPIC, L.P.	CYM	34.5%	by GFPID, LLC
GFPID, LLC	DE	40%	by GC Parent Holdings, LLC
GFS (Ireland) Limited	IRL	100%	by Guggenheim Fund Solutions, LLC
GFS MAP (Ireland) Public Limited Company	IRL	0%	Mgmt. by Guggenheim Fund Solutions, LLC
GGIC Greenbacker Funding Ltd.	CYM	100%	by GGIC, Ltd.
GGIC IIP Holdings LP	CYM	100%	by GGIC, Ltd.; Mgmt. by GGIC IIP Holdings Ltd.
GGIC IIP Holdings Ltd.	CYM	100%	by GGIC, Ltd.
GGIC KTI Holdings, Ltd.	CYM	100%	by GGIC, Ltd.
GGIC Loan Funding I, LLC	DE	100%	by GGIC, Ltd.
GGIC Manager, LLC	DE	100%	by GGIC, Ltd.
GGIC, Ltd.	GGY	100%	by GFPIC, L.P.
GGT GP LLC	DE	100%	by GGT Manager
GGT Manager	DE	100%	by Guggenheim Holdings, LLC
GGT Multi-Strategy Fund LLC	DE	0%	Mgmt. by GGT Manager
GGT Multi-Strategy Funds	CYM	0%	Mgmt. by GGT GP LLC
GGT Trading	DE	0%	Mgmt. by GGT GP LLC
GH Financial, LLC	DE	100%	by Guggenheim Life and Annuity Company
GI Holdco II LLC	DE	100%	by Guggenheim Partners, LLC
GI Holdco LLC	DE	100%	by GI Holdco II LLC
GIA Asia Holdings, Ltd.	CYM	100%	by GWM Holdco, LLC
GIA Europe Holdings, Ltd.	CYM	100%	by GWM Holdco, LLC
GIA Services (CA), Inc.	DE	100%	by Guggenheim Investment Advisors, LLC
GIAS Funds	DE	0%	Mgmt. by Guggenheim Advisors, LLC
GIFS (Cayman) Ltd.	CYM	100%	by GIFS Capital Company, LLC
GIFS Capital Company, LLC	DE	100%	by Relationship Funding Company, LLC
Gila Bend Power Partners, LLC	DE	50%	by Sammons Power Development, Inc.
GIM GP Ltd.	CYM	100%	by Guggenheim Partners Investment Mgmt., LLC
GLAC GBM Investco, LLC	DE	100%	by Guggenheim Life and Annuity Company
GLAC Holdings, LLC	DE	100%	by GPFT Holdco, LLC
Gladwin Holdings, LLC	DE	100%	by Guggenheim Life and Annuity Company
GMI GPIM, LLC	DE	100%	by Guggenheim Manager, Inc.
GMI GPIMH, LLC	DE	100%	by Guggenheim Manager, Inc.
GN Fund I, LLC	FL	100%	by Guggenheim Nicklaus Partners, LLC
GNCG Santiago LLC	DE	100%	by Guggenheim Capital Enterprises, LLC
GNCG Vigo LLC	DE	100%	by GNCG Santiago LLC
GNP property holding entities	DE	100%	by Guggenheim-Nicklaus Fund I, Ltd.
GNP property holding entities	DE	100%	by Guggenheim Nicklaus Partners, LLC
GP Energy Partners, LLC	DE	100%	by Guggenheim Securities, LLC
GP Feeder Fund Management, LLC	DE	100%	by GWM Holdco, LLC
GP Holdco, LLC	DE	99.5%	by Guggenheim Partners, LLC
GP India Opportunities Feeder Fund, LP	CYM	0%	Mgmt. by Guggenheim Partners India GP, LLC

Name

Jurisdiction

Percent of Voting Securities Owned

GPAM Holdings II, LLC	DE	100%	by Guggenheim Partners Investment Mgmt., LLC
GPAM Holdings III, LLC	DE	100%	by Guggenheim Partners Investment Mgmt., LLC
GPAM Holdings IV, LLC	DE	99.5%	by Guggenheim Partners Investment Mgmt., LLC
GPAM Holdings, Inc.	DE	100%	by Guggenheim Partners Investment Mgmt. Holdings, LLC
GPBLK, Inc.	DE	100%	by GP Holdco, LLC
GPC Portfolio Companies	DE	0%	Mgmt. by Guggenheim Advisors, LLC
GPFT Holdco, LLC	DE	100%	by GP Holdco, LLC
GPI Ventures, LLC	DE	100%	by The Grove Park Inn Resort, Inc.
GPIM Holdings V, LLC	DE	TBD	by Guggenheim Partners Investment Mgmt. Holdings, LLC
GPIM Holdings VI, LLC	DE	TBD	by Guggenheim Partners Investment Mgmt. Holdings, LLC
GPM Center Court, LLC	DE	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
GRE Monroe Property LLC	DE	0%	Mgmt. by GRE Monroe LLC
GRE Monroe, LLC	DE	100%	by SBC Funding, LLC
GRE Plus Company, LLC	DE	99.5%	by Guggenheim Partners, LLC
GRE property holding companies	DE	84%-100%	by Guggenheim Plus Leveraged LLC
GRE property holding companies	DE	67%-100%	by Guggenheim Real Estate Investment Trust; Mgmt. by Guggenheim Real Estate Investment Trust
GRE property holding companies	DE	95%-100%	by Guggenheim Plus Mezzanine Finance L.P.; Mgmt. by Guggenheim Plus Mezzanine Finance L.P.
GRE property holding companies	DE	100%	by Guggenheim Plus Unleveraged LLC
GRE U.S. Property Fund GP LLC	DE	100%	by Guggenheim Real Estate LLC
GRE U.S. Property Fund LP	DE	100%	by GRE U.S. Property Fund GP LLC
Green Lane CLO Ltd	CYM	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
GREI GP LLC	DE	100%	by Guggenheim Real Estate LLC
GRES GP LLC	DE	100%	by Guggenheim Trust Company LLC
GS Gamma Advisors, LLC	DE	50%	by Guggenheim Partners Investment Mgmt. Holdings, LLC
GS Gamma Investments, LLC	DE	0%	Mgmt. by GS Gamma Management, LLC
GS Gamma Management, LLC	DE	50%	by Guggenheim Partners Investment Mgmt. Holdings, LLC
GSA Manager LLC	DE	100%	by GGT Manager LLC
GSA OPH LLC	DE	0%	Mgmt. by GSA Manager LLC
GSFI, LLC	DE	70%	by Guggenheim Partners, LLC
GSFI, LLC	DE	30%	by JLx3, LLC
GTVI Partners, LLC	DE	44.4%	by Guggenheim Venture Partners, LLC
Guggenheim Access Funds	DE	0%	Mgmt. by GP Feeder Fund Management, LLC
Guggenheim Advisors (Cayman) Ltd.	CYM	100%	by Guggenheim Advisors, LLC
Guggenheim Advisors Funds	CYM	0%	Mgmt. by Guggenheim Advisors, LLC
Guggenheim Advisors, LLC	DE	100%	by Guggenheim Alternative Asset Management, LLC
Guggenheim aero Finance Company, LLC	DE	100%	by GPBLK, Inc.
Guggenheim Aircraft Opportunity GP, LLC	DE	100%	by Guggenheim Partners Investment Mgmt., LLC
Guggenheim Alpha Solutions Fund, LLC	DE	100%	by GPIM Holdings V, LLC
Guggenheim Alternative Asset Management, LLC	DE	100%	by GPFT Holdco, LLC
Guggenheim Apsley Fund, L.P.	CYM	0%	Mgmt. by Guggenheim Apsley Holdings, LLC
Guggenheim Apsley Holdings, LLC	DE	100%	by Guggenheim Partners Investment Mgmt. Holdings, LLC
Guggenheim Aviation GAP Holdco, LLC	DE	100%	by Guggenheim Aviation Partners, LLC
Guggenheim Aviation GM Holdco, LLC	DE	100%	by Guggenheim Manager, Inc.
Guggenheim Aviation GP Holdco, LLC	DE	100%	by Guggenheim Partners, LLC
Guggenheim Aviation Investment Fund II, LP	DE	0%	Mgmt. by Guggenheim Aviation Services II, LLP
Guggenheim Aviation Offshore Investment Fund II, L.P.	CYM	0%	Mgmt. by Guggenheim Aviation Services II, Ltd.

Name

Jurisdiction

Percent of Voting Securities Owned

Guggenheim Aviation Partners Limited	GBR	100%	by Guggenheim Capital, LLC
Guggenheim Aviation Partners, LLC	DE	59.5%	by Guggenheim Aviation GP Holdco, LLC
Guggenheim Aviation Services II, LLP	DE	39.5%	by Guggenheim Aviation GP Holdco, LLC
Guggenheim Aviation Services II, Ltd.	CYM	100%	by Guggenheim Capital, LLC
Guggenheim Aviation Services, Ltd.	CYM	100%	by Guggenheim Capital, LLC
Guggenheim Capital Enterprises, LLC	DE	99.5%	by Guggenheim Capital, LLC
Guggenheim Capital International, Ltd.	CYM	100%	by GC Parent Holdings, LLC
Guggenheim Capital Management (Asia) Private Limited	IND	99%	by Guggenheim Partners Mauritius II, Ltd.
Guggenheim Capital, LLC	DE	41%	by SAGE Assets, Inc.
Guggenheim Commercial Real Estate Finance, LLC	DE	100%	by GPFT Holdco, LLC
Guggenheim Concinnity Funds	CYM	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
Guggenheim Concinnity Strategy Funds	DE	0%	Mgmt. by Guggenheim Partners, LLC
Guggenheim Corporate Funding, LLC	DE	100%	by Guggenheim Partners Investment Mgmt. Holdings, LLC
Guggenheim Credit Services, LLC	DE	100%	by Guggenheim Partners Investment Mgmt. Holdings, LLC
Guggenheim Development Partners, Inc.	DE	100%	by GC Parent Holdings, LLC
Guggenheim Digital Media, LLC	DE	100%	by GI Holdco II LLC
Guggenheim Disbursement Agent, LLC	DE	100%	by Guggenheim Services, LLC
Guggenheim Distributors, LLC	KS	100%	by Rydex Holdings, LLC
Guggenheim Energy Advisors, LLC	DE	50%	by GP Energy Partners, LLC; Mgmt. by GP Energy Partners, LLC
Guggenheim Energy LLC	DE	100%	by Guggenheim Partners Investment Mgmt. Holdings, LLC
Guggenheim Energy Opportunities Fund, LP	DE	0%	Mgmt. by Guggenheim Energy LLC
Guggenheim Energy Opportunities Leveraged Fund, LP	DE	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
Guggenheim Enhanced Income Fund, LLC	DE	0%	Mgmt. by GPIM Holdings VI, LLC
Guggenheim Franklin Park Management, LLC	DE	100%	by GGIC, Ltd.
Guggenheim Fund Solutions, LLC	DE	100%	by GPFT Holdco, LLC
Guggenheim Funding (Cayman) Ltd.	CYM	100%	by Guggenheim Capital, LLC
Guggenheim Funds Distributors, LLC	DE	100%	by Guggenheim Funds Services, LLC
Guggenheim Funds Investment Advisors, LLC	DE	100%	by Guggenheim Funds Services, LLC
Guggenheim Funds Services Holdings, LLC	DE	100%	by Guggenheim Partners Investment Mgmt. Holdings, LLC
Guggenheim Funds Services, LLC	DE	100%	by Guggenheim Funds Services Holdings, LLC
Guggenheim GGT (Swiss) Gmbh	CH	100%	by Guggenheim Global Trading, LLC
Guggenheim Global Investments Public Limited Company	IRL	100%	by Guggenheim Partners Investment Mgmt., LLC
Guggenheim Global Trading, LLC	DE	99.5%	by Guggenheim Manager Holdco, LLC
Guggenheim Golf Properties Investor, LLC	DE	99.5%	by GC Parent Holdings, LLC
Guggenheim High Yield Plus Funds	DE	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
Guggenheim Holdings, LLC	DE	99.5%	by Guggenheim Partners, LLC
Guggenheim Insurance Holdco, LLC	DE	100%	by GPFT Holdco, LLC
Guggenheim Insurance Services, LLC	DE	100%	by Guggenheim Insurance Holdco, LLC
Guggenheim International, LLC	DE	100%	by Guggenheim Corporate Funding, LLC
Guggenheim Investment Advisors (Europe) Limited	GBR	100%	by GIA Europe Holdings, Ltd.
Guggenheim Investment Advisors (Hong Kong) Limited	HKG	100%	by GIA Asia Holdings, Ltd.
Guggenheim Investment Advisors, LLC	DE	100%	by GWM Holdco, LLC
Guggenheim Investment Advisory Solutions, LLC	DE	100%	by GPFT Holdco, LLC

Name

Jurisdiction

Percent of Voting Securities Owned

Guggenheim Investor Services, LLC	DE	100%	by GWM Holdco, LLC
Guggenheim Investors Fund LLC	DE	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
Guggenheim IQ Equity Funds	DE	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
Guggenheim Knights of Security, LLC	DE	100%	by Guggenheim Partners, LLC
Guggenheim Life and Annuity Company	DE	100%	by GLAC Holdings, LLC
Guggenheim Loan Agent, LLC	DE	100%	by GPFT Holdco, LLC
Guggenheim Loan Services Company, Inc.	CA	100%	by Guggenheim Loan Services Company, LLC
Guggenheim Loan Services Company, LLC	DE	100%	by Guggenheim Partners Investment Mgmt. Holdings, LLC
Guggenheim Management, LLC	DE	100%	by Guggenheim Alternative Asset Management, LLC
Guggenheim Manager Holdco, LLC	DE	99.5%	by Guggenheim Partners, LLC
Guggenheim Manager, Inc.	DE	100%	by Guggenheim Capital, LLC
Guggenheim Media, LLC	DE	100%	by GI Holdco II LLC
Guggenheim Merchant Manager, LLC	DE	100%	by GPFT Holdco, LLC
Guggenheim Mortgage Capital, LLC	DE	80%	by Liberty Hampshire Holdings, LLC
Guggenheim Nicklaus Partners, LLC	DE	70%	by GC Parent Holdings, LLC
Guggenheim Opportunities Investors III, LLC	DE	100%	by Guggenheim Capital, LLC
Guggenheim Partners Advisory Company	SD	100%	by Guggenheim Partners, LLC
Guggenheim Partners Covered Call Fund GP, L.L.C.	DE	99.5%	by Guggenheim Partners, LLC
Guggenheim Partners Covered Call Fund, L.P.	DE	0%	Mgmt. by Guggenheim Partners Covered Call Fund GP, L.L.C.
Guggenheim Partners Europe Limited	IRL	100%	by Guggenheim Partners Investment Mgmt. Holdings, LLC
Guggenheim Partners India GP, LLC	DE	67%	by Guggenheim Partners India Holdings, LLC
Guggenheim Partners India Holdings, LLC	DE	100%	by GPFT Holdco, LLC
Guggenheim Partners India Limited (Cayman)	CYM	100%	by Guggenheim Partners India Holdings, LLC
Guggenheim Partners India Management, LLC	DE	100%	by Guggenheim Partners India Holdings, LLC
Guggenheim Partners Investment Management Holdings, LLC	DE	99.5%	by GI Holdco LLC
Guggenheim Partners Investment Management, LLC	DE	99.5%	by Guggenheim Partners Investment Mgmt. Holdings, LLC
Guggenheim Partners London Premises Limited	UK	100%	by Guggenheim Capital, LLC
Guggenheim Partners Mauritius I, Ltd.	MUS	100%	by Guggenheim Partners India Limited (Cayman)
Guggenheim Partners Mauritius II, Ltd.	MUS	100%	by Guggenheim Partners Mauritius I, Ltd.
Guggenheim Partners Opportunistic Investment Grade Securities Funds	CYM	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
Guggenheim Partners, LLC	DE	100%	by Guggenheim Capital, LLC
Guggenheim Payroll Agent, LLC	DE	100%	by Guggenheim Capital, LLC
Guggenheim Plus GP LLC	DE	100%	by Guggenheim Real Estate LLC
Guggenheim Plus II GP, LLC	DE	100%	by Guggenheim Real Estate LLC
Guggenheim Plus II L.P.	DE	0%	Mgmt. by Guggenheim Plus II GP, LLC
Guggenheim Plus L.P.	DE	0%	Mgmt. by Guggenheim Plus GP LLC
Guggenheim Plus Leveraged LLC	DE	100%	by Guggenheim Plus L.P.; Mgmt. by Guggenheim Trust Company LLC
Guggenheim Plus Mezzanine Finance L.P.	DE	91%	by Guggenheim Plus L.P.; Mgmt. by GRES GP LLC/Guggenheim Trust Company LLC
Guggenheim PLUS Strategic Funding Member, Inc.	DE	100%	by Guggenheim Real Estate LLC
Guggenheim Portfolio Management (India) Private Limited	IND	49.9%	by Guggenheim Partners Mauritius II, Ltd.
Guggenheim Premises I, LLC	DE	100%	by Guggenheim Capital, LLC
Guggenheim Private Debt Funds	DE	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC

Name

Jurisdiction

Percent of Voting Securities Owned

Guggenheim Private Family Network, LLC	DE	99.5%	by Guggenheim Partners, LLC
Guggenheim Proprietary Investor investment entities	CYM	100%	by GC Deferred Compensation Offshore, Ltd.
Guggenheim Real Estate International Fund L.P.	CYM	0%	Mgmt. by GREI GP LLC
Guggenheim Real Estate Investment Trust	MA	100%	by Guggenheim Trust Company LLC
Guggenheim Real Estate LLC	DE	99.5%	by GPFT Holdco, LLC
Guggenheim Real Estate Partners L.P.	DE	94.9%	by GPFT Holdco, LLC
Guggenheim Real Estate Services Inc.	DE	100%	by Guggenheim Real Estate LLC
Guggenheim Receivable Financing, LLC	DE	100%	by Guggenheim Services, LLC
Guggenheim Reinsurance Holdings, LLC	DE	100%	by GPBLK, Inc.
Guggenheim Retail Real Estate Partners, Inc.	DE	100%	by GC Parent Holdings, LLC
Guggenheim SBC Holdings, LLC	DE	0%	Mgmt. by Guggenheim Knights of Security, LLC
Guggenheim Securities Holdings, LLC	DE	100%	by GPFT Holdco, LLC
Guggenheim Securities, LLC	DE	100%	by Links Holdings LLC
Guggenheim Services, LLC	DE	99.5%	by Guggenheim Capital, LLC
Guggenheim Specialized Products, LLC	DE	100%	by Security Investors, LLC
Guggenheim Stella Multi-Strategy Fund, LP	DE	100%	by Guggenheim Strategic Fund Management, LLC
Guggenheim Strategic Fund Management, LLC	DE	99.5%	by Guggenheim Partners, LLC
Guggenheim Strategy Funds	CYM	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
Guggenheim Technology Ventures I, L.P.	DE	0%	Mgmt. by GTVI Partners, LLC
Guggenheim Transparent Value, LLC	DE	63.8%	by GPFT Holdco, LLC
Guggenheim Treasury Services (Europe) Limited	GBR	100%	by Liberty Hampshire International Limited
Guggenheim Treasury Services Corporation (N.Y.)	DE	100%	by The Liberty Hampshire Company, LLC
Guggenheim Treasury Services, LLC	DE	100%	by Liberty Hampshire Holdings, LLC
Guggenheim Trust Assets, LLC	DE	100%	by Guggenheim Securities, LLC
Guggenheim Trust Company LLC	SD	99.5%	by Guggenheim Partners, LLC
Guggenheim Venture Partners, LLC	DE	100%	by GPFT Holdco, LLC
Guggenheim Wealth Services, LLC	DE	100%	by GWM Holdco, LLC
Guggenheim-meZocliq Holdings, LLC	DE	100%	by GPFT Holdco, LLC
Guggenheim-Nicklaus Fund I, Ltd.	FL	89.5%	by Guggenheim Golf Properties Investor, LLC
GW Ocean, LLC	DE	50%	by Guggenheim Partners Investment Mgmt., LLC
GWM Holdco, LLC	DE	99.5%	by Guggenheim Partners, LLC
HB property holding entities	DE	100%	by Retail Investors III, LLC
Heights 2, LLC d/b/a WSGEV Holdings, LP	DE	100%	by Compatriot Capital, Inc.
Herakles Investments, Inc.	DE	100%	by Consolidated Investment Services, Inc.
HHEP-DirecPath, LP	DE	25%	by Sammons Capital, Inc.
HHEP-Directional, LP	DE	24.9%	by Sammons Capital, Inc.
HHEP-Latrobe, LP	DE	24.9%	by Sammons Capital, Inc.
HHEP-Ocular	DE	24.8%	by Sammons Capital, Inc.
HHEP-SafeMed, LP	DE	20.9%	by Sammons Capital, Inc.
Highland Peak investment entities	DE	100%	by EL Funding, LLC
IDF investment entities	DE	100%	by Security Benefit Life Insurance Company
IDF investment entities	DE	100%	by EquiTrust Life Insurance Company
IDF investment entities	DE	100%	by Guggenheim Life and Annuity Company
IIP Bridge Investors, LLC	DE	100%	by GPFT Holdco, LLC
Infrastructure India Plc	DE	100%	by Franklin Park (Cyprus) Limited
Internet Radio Funding, LLC	DE	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
IPEX LLC	DE	100%	by Generation Financial Group, LLC
IPEX Services, LLC	DE	100%	by Generation Financial Group, LLC

Name

Jurisdiction

Percent of Voting Securities Owned

Iron Hill CLO Limited	CYM	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
Jasmine Asset Funding Limited	CYM	100%	by The Liberty Hampshire Company, LLC
Java Acquisition Company property holding entities	DE	100%	by Guggenheim Retail Real Estate Partners, Inc.
JHCCI Leasing LLC	DE	50%	by Compatriot Capital, Inc.
JLB 2728 Cedar Springs, LP	TX	30%	by JLB Partners LLC
JLB 2728 Cedar Springs, LP	TX	70%	by Compatriot Capital, Inc.
JLB BUILDERS LLC	TX	100%	by JLB Partners LLC
JLB McLean LLC	TX	30%	by JLB Partners LLC
JLB McLean LLC	TX	40.9%	by Compatriot Capital, Inc.
JLB Partners LLC	DE	30%	by Compatriot Capital, Inc.
JLB Peachtree LLC	TX	10%	by JLB Partners LLC
JLB Peachtree LLC	TX	70%	by Compatriot Capital, Inc.
JLB REALTY LLC	TX	100%	by JLB Partners LLC
JLB RESIDENTIAL LLC	TX	100%	by JLB Partners LLC
JLx3, LLC	DE	22.2%	by Guggenheim Partners, LLC
KDC Holdings, LLC	DE	50%	by E2M/SRC Investment Company, LLC
Kemps Landing Capital Company, LLC	DE	100%	by The Liberty Hampshire Company, LLC
Kennecott Funding Ltd	CYM	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
King Tech Holdings Ltd.	CYM	100%	by GGIC KTI Holdings, Ltd.
King Tech International, Ltd.	CYM	100%	by King Tech Holdings Ltd.
Kitts Hill Funding A, LLC	DE	100%	by LSFCA A, LLC
Kitts Hill Funding B, LLC	DE	100%	by LSFCA B, LLC
Kitts Hill Funding C, LLC	DE	100%	by LSFCA C, LLC
KLD Funding, LLC	DE	100%	by The Liberty Hampshire Company, LLC
Lamberton Funding, LLC	DE	100%	by Lavallette Insurance Agency, LLC
Lavallette Insurance Agency, LLC	DE	100%	by EquiTrust Life Insurance Company
LCLF investment entities	DE	100%	by Corporate Funding V, LLC
Legacy (Cayman) Ltd.	CYM	100%	by Legacy Capital Company, LLC
Legacy Capital Company, LLC	DE	100%	by The Liberty Hampshire Company, LLC
Lexington Parker (Cayman) Ltd.	CYM	100%	by Lexington Parker Capital Company, L.L.C.
Lexington Parker Capital Company, L.L.C.	DE	100%	by The Liberty Hampshire Company, LLC
Liberty Hampshire Holdings, LLC	DE	99.5%	by Guggenheim Capital, LLC
Liberty Hampshire International Limited	CYM	100%	by The Liberty Hampshire Company, LLC
Links Holdings LLC	DE	99.5%	by Guggenheim Partners, LLC
Links Holdings, Inc.	DE	100%	by Guggenheim Partners, LLC
Lionel Holdings, LLC	DE	0%	Mgmt. by Guggenheim Corporate Funding, LLC
Longhorn Trail Ranch II, Ltd.	TX	40%	by Compatriot Capital, Inc.
LSFCA A, LLC	DE	100%	by AF V, LLC
LSFCA B, LLC	DE	100%	by AF VI, LLC
LSFCA C, LLC	DE	100%	by AF VII, LLC
Magma WCFF II Ltd	CYM	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
Mexcolift Servicios de Personnel S. de R.L. de C.V.	MEX	99%	by Controladora Briggs de Mexico S. de R.L. de C.V.
Mexcolift Servicios de Personnel S. de R.L. de C.V.	MEX	1%	by Briggs Equipment Mexico, Inc.
MF Master Seed Co., LLC	DE	100%	by SBC Funding, LLC
MF Seed Co., LLC	DE	100%	by MF Master Seed Co., LLC
Midland National Life Insurance Company	IA	100%	by Sammons Financial Group, Inc.
Midland National Services Corporation, LLC	DE	100%	by Midland National Life Insurance Company
Minerva Funding LLC	DE	100%	by Guggenheim Life and Annuity Company

Name

Jurisdiction

Percent of Voting Securities Owned

Minerva Holdings Ltd.	CYM	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
Minerva Holdings, LLC	DE	0%	Mgmt. by Guggenheim Corporate Funding, LLC
Minutemen Park Cayman Limited	CYM	0%	Mgmt. by Guggenheim Partners, LLC
MNL Reinsurance Company	IA	100%	by Midland National Life Insurance Company
Montacargas Yale, de Mexico S.A. de C.V.	MEX	99%	by Briggs Equipment, Inc.
Montacargas Yale, de Mexico S.A. de C.V.	MEX	1%	by Briggs Equipment Mexico, Inc.
Monterra investment entities	DE	100%	by EL Funding, LLC
Moore's Creek Capital Corporation	DE	100%	by The Liberty Hampshire Company, LLC
N318MM, LLC	KS	50%	by Security Benefit Corporation
NC property holding entities	DE	100%	by Retail Investors III, LLC
Nominee Holding Company, LLC	DE	100%	by GPFT Holdco, LLC
North American Company for Life and Health Insurance	IA	100%	by Sammons Financial Group, Inc.
Note Funding II, LLC	KS	100%	by Security Benefit Corporation
Note Funding III, LLC	KS	100%	by Security Benefit Corporation
Note Funding MP II, LLC	KS	100%	by Security Benefit Corporation
Note Funding MP III, LLC	KS	100%	by Security Benefit Corporation
Note Funding MP, LLC	KS	100%	by Security Benefit Corporation
Note Funding, LLC	KS	100%	by Security Benefit Corporation
NZC Guggenheim Funds	DE	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
NZCG Funding	DE	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
Optimus Funding Company, LLC	DE	100%	by The Liberty Hampshire Company, LLC
Orpheus Funding, LLC	DE	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
Orpheus Holdings, LLC	DE	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
Otter, Inc.	OK	100%	by Sammons Power Development, Inc.
Paragon GBM Investco, LLC	DE	100%	by Paragon Life Insurance Company of Indiana
Paragon Life Insurance Company of Indiana	IN	100%	by PLIC Holdings, LLC
Parkway Mortgage, Inc.	DE	100%	by Consolidated Investment Services, Inc.
Pathfinder Renewable Wind Energy, LLC	WY	35.3%	by Sammons Power Development, Inc.
PH Capital, LLC	DE	100%	by PLIC Holdings, LLC
Picton S.à r.l.	LUX	99.6%	by The Liberty Hampshire Company, LLC
Pilar Holdings, LLC	FL	88.4%	by GC Pilar Golf Investment, LLC
Pillar Capital Finance, LLC	DE	100%	by Pillar Financial, LLC
Pillar Financial, LLC	DE	24.2%	by GPFT Holdco, LLC; Mgmt. by GPFT Holdco, LLC
Pillar Multifamily, LLC	DE	100%	by Pillar Financial, LLC
PLIC Holdings, LLC	DE	100%	by Guggenheim Insurance Holdco, LLC
Property Disposition, Inc.	DE	100%	by Sammons Financial Group, Inc.
Relationship Funding (Cayman) Ltd.	CYM	100%	by The Liberty Hampshire Company, LLC
Relationship Funding Company, LLC	DE	100%	by The Liberty Hampshire Company, LLC
Retail Investors I, LLC	DE	49%	by Stonefire Investors, LLC
Retail Investors I, LLC	DE	51%	by Stonebridge Investors I, LLC
Retail Investors II, LLC	DE	99.5%	by Stonefire Investors, LLC; Mgmt. by Stonebridge Investors II, LLC
Retail Investors III, LLC	DE	0%	Mgmt. by Stonebridge Investors II, LLC
RHDFJ Partners, LP	TX	50%	by JLB Partners LLC
RHDFJ Partners, LP	TX	50%	Compatriot Capital, Inc.
Ridgefield Funding Company, LLC	DE	100%	by The Liberty Hampshire Company, LLC
Rydex Fund Services, LLC	KS	100%	by Rydex Holdings, LLC

Name

Jurisdiction

Percent of Voting Securities Owned

Rydex Holdings, LLC	KS	100%	by Guggenheim Partners Investment Mgmt. Holdings, LLC
Saganaw Insurance Agency, LLC	DE	100%	by Guggenheim Life and Annuity Company
SAGE Assets, Inc.	DE	100%	by Sammons Equity Alliance, Inc.
SAILES 2, LLC	DE	100%	by SAILES 2-0, LLC
SAILES 2-0, LLC	DE	100%	by Security Benefit Life Insurance Company
Sammons BW, Inc.	DE	100%	by Sammons Distribution Holdings, Inc.
Sammons Capital, Inc.	DE	100%	by Sammons Equity Alliance, Inc.
Sammons Corporation	DE	100%	by Consolidated Investment Services, Inc.
Sammons Distribution Holdings, Inc.	DE	100%	by Consolidated Investment Services, Inc.
Sammons Enterprises, Inc.	DE	100%	by Sammons Enterprises, Inc. ESOT
Sammons Equity Alliance, Inc.	DE	100%	by Consolidated Investment Services, Inc.
Sammons Financial Group, Inc.	DE	100%	by Consolidated Investment Services, Inc.
Sammons Financial Network, LLC	DE	100%	by Sammons Securities, Inc.
Sammons Power Development, Inc.	DE	100%	by Sammons Equity Alliance, Inc.
Sammons Retirement Solutions, Inc.	DE	100%	by Sammons Financial Group, Inc.
Sammons Securities Company, LLC	DE	67.2%	by Sammons Securities, Inc.
Sammons Securities, Inc.	DE	100%	by Sammons Financial Group, Inc.
Sands Point Funding Ltd	CYM	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
Sandy Point Capital Company, LLC	DE	100%	by The Liberty Hampshire Company, LLC
Saratoga Springs Capital Company, LLC	DE	100%	by The Liberty Hampshire Company, LLC
Saulsbury Funding, LLC	DE	100%	by Searcy Insurance Agency, LLC
SB Carco Holdings, LLC	KS	100%	by Security Benefit Corporation
SB Carco, LLC	KS	100%	by SB Carco Holdings, LLC
SB Custody, LLC	DE	100%	by Guggenheim SBC Holdings, LLC
SB Private Investments, LLC	DE	100%	by Guggenheim SBC Holdings, LLC
SB I property holding entities	DE	100%	by Retail Investors I, LLC
SB II property holding entities	DE	100%	by Retail Investors II, LLC
SB III property holding entities	DE	100%	by Retail Investors III, LLC
SBC Funding, LLC	KS	100%	by Security Benefit Corporation
SBTree, Inc.	DE	100%	by Guggenheim Partners, LLC
se2 Holdco, LLC	KS	100%	by Security Benefit Corporation
se2 Holdings, Inc.	KS	100%	by se2 Holdco, LLC
se2 Holdings, LLC	DE	100%	by Guggenheim SBC Holdings, LLC
se2, LLC	KS	100%	by se2 Holdings, Inc.
Searcy Insurance Agency, LLC	DE	100%	by EquiTrust Life Insurance Company
SecBen GBM Investco, LLC	DE	100%	by Security Benefit Life Insurance Company
Security Benefit Academy, Inc.	KS	100%	by Security Benefit Corporation
Security Benefit Asset Management Holdings, LLC	KS	100%	by GI Holdco II LLC
Security Benefit Corporation	KS	100%	by Guggenheim SBC Holdings, LLC
Security Benefit Life Insurance Company	KS	100%	by Security Benefit Corporation
Security Distributors, Inc.	KS	100%	by Security Benefit Life Insurance Company
Security Financial Resources, Inc.	KS	100%	by Security Benefit Corporation
Security Investors, LLC	KS	100%	by Rydex Holdings, LLC
Sentry Funding, LLC	DE	100%	by Saganaw Insurance Agency, LLC
SFVII GP, LLC	DE	100%	by Guggenheim Fund Solutions, LLC
SIA Funding, LLC	DE	100%	by Saganaw Insurance Agency, LLC
Ski Partners II, LLC	DE	32.8%	by Compatriot Capital, Inc.
Ski Partners, LLC	DE	32.7%	by Compatriot Capital, Inc.

Name

Jurisdiction

Percent of Voting Securities Owned

SL Funding, LLC	DE	100%	by Guggenheim SBC Holdings, LLC
SLBCA Holding LLC	DE	90%	by Compatriot Capital, Inc.
SLBCA Holding LLC	DE	10%	by Village Green Holding LLC
SLF II-McCarty Investors II, LP	TX	69.5%	Compatriot Capital, Inc.
SLF II-McCarty Investors, LP	TX	22%	by Compatriot Capital, Inc.
Solberg Reinsurance Company	IA	100%	by Midland National Life Insurance Company
Soo Line Building City Apartments LLC	DE	85%	by SLBCA Holding LLC
South Blacktree Agency, LLC	DE	100%	by SBTree, Inc.
SRI Ventures, LLC	DE	100%	by Compatriot Capital, Inc.
Stellar Funding Ltd	CYM	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
Stone Secured investment entities	DE	100%	by EL Funding, LLC
Stonebridge Investors I, LLC	DE	99.5%	by GC Parent Holdings, LLC
Stonebridge Investors II, LLC	DE	99.5%	by GC Parent Holdings, LLC
Stonefire Investors, LLC	DE	100%	by Guggenheim Life and Annuity Company
Stony Point Capital Company, LLC	DE	100%	by The Liberty Hampshire Company, LLC
TEK Financial, LLC	DE	99.5%	by Guggenheim Partners, LLC
Terrabyte Development, LLC	DE	100%	by Guggenheim Retail Real Estate Partners, Inc.
The Liberty Hampshire Capital Company, LLC	DE	100%	by The Liberty Hampshire Company, LLC
The Liberty Hampshire Company, LLC	DE	100%	by Liberty Hampshire Holdings, LLC
The Property and Casualty Reinsurance Company of Bermuda Ltd.	BMU	100%	by Guggenheim Reinsurance Holdings, LLC
theAudience, Inc.	DE	0%	Mgmt. by SBC Funding, LLC
Thomas Creek Capital Corporation	DE	100%	by The Liberty Hampshire Company, LLC
Thomas Weisel India Opportunity Fund, LP	DE	0%	Mgmt. by Guggenheim Partners India GP, LLC
Ticknor Corner Holdings LLC	DE	100%	by Minerva Holdings, LLC
Ticknor Corner LLC	DE	100%	by Ticknor Corner Holdings LLC
TK property holding entities	DE	100%	by Retail Investors III, LLC
Tocqueville Capital Company B.V.	DE	100%	by The Liberty Hampshire Company, LLC
Toledo-MNG, LLC	DE	90.6%	by GC Pilar Golf Investment, LLC
Toledo-SLS, LLC	DE	90.6%	by GC Pilar Golf Investment, LLC
Tomorrow, LLC	DE	100%	by Guggenheim Life and Annuity Company
Transparent Value Advisors, L.L.C.	DE	100%	by Transparent Value, L.L.C.
Transparent Value Private Limited	IND	100%	by Transparent Value, L.L.C.
Transparent Value, L.L.C.	DE	100%	by Guggenheim Transparent Value, LLC
Trigger Investco, LLC	DE	0%	Mgmt. by Guggenheim Partners Investment Mgmt., LLC
UBSFC, LLC	DE	100%	by The Liberty Hampshire Company, LLC
UQ 720 Partners, LP	DE	95%	by Compatriot Capital, Inc.
Valcour Bay Capital Company, LLC	DE	100%	by The Liberty Hampshire Company, LLC
Venice GSTF I, LLC	DE	100%	by Guggenheim Life and Annuity Company
VGH St. Louis LLC	DE	100%	by Village Green Holding LLC
Village Green Communications LLC	DE	100%	by Village Green Holding LLC
Village Green Construction LLC	DE	100%	by Village Green Holding LLC
Village Green Development Holding LLC	DE	100%	by Village Green Holding LLC
Village Green Holding LLC	DE	50%	by Compatriot Capital, Inc.
Village Green Management Company LLC	DE	100%	by Village Green Holding LLC
V-Suites LLC	DE	100%	by Village Green Holding LLC
White Plains Capital Company, LLC	DE	100%	by The Liberty Hampshire Company, LLC
Wind Investors I, LLC	DE	100%	by GFP Wind Holdings, LLC
XONM 2012, Inc.	DE	100%	by XONM LLC

Name

Jurisdiction

Percent of Voting Securities Owned

XONM Capital LLC	DE	100%	by XONM LLC
XONM Funding LLC	DE	100%	by XONM Capital LLC
XONM LLC	DE	100%	by Guggenheim Mortgage Capital, LLC

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933		o
Pre-Effective Amendment No.		o
Post-Effective Amendment No.	21	x

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940		o
Amendment No.	24	x

o	immediately upon filing pursuant to paragraph (b) of Rule 485
x	on May 1, 2014, pursuant to paragraph (b) of Rule 485
o	60 days after filing pursuant to paragraph (a)(1) of Rule 485
o	on May 1, 2014, pursuant to paragraph (a)(1) of Rule 485

Contractowner Transaction Expenses are fees and expenses that you will pay when you purchase the Contract or make withdrawals from the Contract. The information below does not reflect state premium taxes (which currently range from 0% to 3.5%), which may be applicable to your Contract. During the Annuity Period, the Company may impose different fees and expenses not reflected in the following tables or Example. See “Mortality and Expense Risk Charge.”
Sales Load on Purchase Payments	None
Contingent Deferred Sales Load	None
Periodic Expenses are fees and expenses that you will pay periodically during the time that you own the Contract, not including fees and expenses of the Portfolios
Annual Maintenance Fee	None
Separate Account Annual Expenses (as a percentage of average Subaccount daily net assets)
Annual Mortality and Expense Risk Charge	0.55%
Total Separate Account Annual Expenses	0.55%

	Minimum	Maximum
Total Annual Portfolio Operating Expenses1	0.40%	1.05%

	1 Year	3 Years	5 Years	10 Years
Whether or not you surrender or annuitize your Contract at the end of the applicable time period	$163	$505	$871	$1,900

Definitions	5
Summary	7
Expense Table	10
Condensed Financial Information	11
Information About the Company, the Separate Account, and the Funds	13
The Contract	16
Charges and Deductions	29
Annuity Payments	30
The Fixed Interest Account	34
More About the Contract	37
Federal Tax Matters	38
Other Information	46
Performance Information	49
Additional Information	50
Table of Contents For Statement of Additional Information	51

Subaccount	Year	Accumulation Unit Value ($)		Accumulation Units Outstanding at End of Period
Subaccount	Year	Beginning of Period	End of Period	Accumulation Units Outstanding at End of Period
New America Growth	2013	31.70	43.51	79,146
	2012	28.18	31.70	82,792
	2011	28.64	28.18	83,863
	2010	24.07	28.64	87,713
	2009	16.16	24.07	89,608
	2008	26.31	16.16	94,617
	2007	23.26	26.31	101,519
	2006	21.79	23.26	108,020
	2005	20.97	21.79	122,898
	2004	19.01	20.97	126,686
Mid-Cap Growth	2013	40.99	55.72	145,261
	2012	36.18	40.99	150,876
	2011	36.85	36.18	162,429
	2010	28.92	36.85	168,128
	2009	19.97	28.92	176,349
	2008	33.33	19.97	210,640
	2007	28.52	33.33	218,182
	2006	26.89	28.52	230,872
	2005	23.57	26.89	240,360
	2004	20.02	23.57	229,651
Equity Income	2013	38.64	49.85	124,422
	2012	33.17	38.64	138,809
	2011	33.59	33.17	146,190
	2010	29.37	33.59	153,963
	2009	23.51	29.37	159,050
	2008	37.00	23.51	167,200
	2007	36.03	37.00	184,360
	2006	30.45	36.03	196,482
	2005	29.47	30.45	213,636
	2004	25.78	29.47	204,994
Personal Strategy Balanced	2013	37.43	43.89	86,330
	2012	32.68	37.43	83,221
	2011	32.97	32.68	84,387
	2010	29.16	32.97	85,330
	2009	22.19	29.16	90,158
	2008	31.82	22.19	97,988
	2007	29.74	31.82	103,294
	2006	26.73	29.74	87,917
	2005	25.26	26.73	84,666
	2004	22.51	25.26	76,223
Blue Chip Growth	2013	12.85	18.04	34,256
	2012	10.93	12.85	34,850
	2011	10.82	10.93	34,150
	2010	9.35	10.82	35,168
	2009	6.61	9.35	43,566
	2008	11.56	6.61	44,726
	2007	10.31	11.56	56,199
	2006	9.46	10.31	39,646
	2005	8.98	9.46	26,279
	2004	8.30	8.98	26,740

●	The total dollar amount being exchanged;

●	The number of exchanges you made within the previous three months;

●	Exchanges to and from (or from and to) the same Subaccount;

●	Whether your exchanges appear to follow a pattern designed to take advantage of short-term market fluctuations; and

●	Whether your exchanges appear to be part of a group of exchanges made by a third party on behalf of the individual Owners in the group.

Annuity Option	Variable Annuity	Fixed Annuity	Combination Variable and Fixed Annuity
Option 1 – Life Income	X	X
Option 2 – Life Income with Period Certain	X	X
Option 3 – Life Income with Installment Refund	X	X
Option 4 – Joint and Last Survivor	X	X
Option 5 – Payments for a Specified Period	X	X	X
Option 6 – Payments of a Specified Amount	X	X	X
Option 7 – Age Recalculation	X	X	X

(a)	Financial Statements

	The following financial statements are included in Part B of this Registration Statement: (1) the audited financial statements of First Security Benefit Life Insurance and Annuity Company of New York at December 31, 2013 and 2012, and for each of the three years in the period ended December 31, 2013; and (2) the audited financial statements for the T. Rowe Price Variable Annuity Account of First Security Benefit Life Insurance and Annuity Company of New York at December 31, 2013, and for each of the specified periods ended December 31, 2013 and 2012.

(b)	Exhibits
	(1)	Certified Resolution of the Board of Directors of First Security Benefit Life Insurance and Annuity Company of New York authorizing establishment of the Separate Account(b)

	(2)	Not Applicable

	(3)	Distribution Agreement (Amended and Restated)(d)

	(4)	(a)	Individual Contract (Form FSB201 R10-00)(d)
		(b)	Unisex Individual Contract (Form FSB201U R10-00)(d)
		(c)	TSA Endorsement (Form FSB202 R2-97)(a)
		(d)	IRA Endorsement (Form FSB203 R2-97)(a)
		(e)	Dollar Cost Averaging Endorsement (Form FSB211 4-94)(a)
		(f)	Asset Rebalancing Endorsement (Form FSB212 4-94)(a)
		(g)	Roth IRA Endorsement (Form FSB206 11-97)(c)

	(5)	Application (Form FSB200 R1-98)(d)

	(6)	(a)	Declaration and Certificate of Incorporation of First Security Benefit Life Insurance and Annuity Company of New York(e)
		(b)	Bylaws of First Security Benefit Life Insurance and Annuity Company of New York(f)
			(i)	Amended & Restated Article IX of First Security Benefit Life Insurance and Annuity Company of New York’s Bylaws(f)

	(7)	Not Applicable

	(8)	(a)	Participation Agreement(d)
		(b)	Amended and Restated Master Agreement(d)

	(9)	Opinion of Counsel(d)

	(10)	Consent of Independent Registered Public Accounting Firm

	(11)	Not Applicable

	(12)	Not Applicable

	(13)	Not Applicable

	(14)	Powers of Attorney of John F. Guyot, Michael P. Kiley, Anthony D. Minella, Roger S. Offermann, Barry G. Ward, Katherine P. White and Douglas G. Wolff(g)

(a)	Incorporated herein by reference to the exhibits filed with Registration Statement No. 033-83240 (filed April 30, 1998).
(b)	Incorporated herein by reference to the exhibits filed with Registration Statement No. 033-83240 (filed March 1, 1999).
(c)	Incorporated herein by reference to the exhibits filed with Registration Statement No. 033-83240 (filed May 1, 2000).
(d)	Incorporated herein by reference to the exhibits filed with Registration Statement No. 033-83240 (filed April 12, 2001).
(e)	Incorporated herein by reference to the exhibits filed with Registration Statement No. 033-83240 (filed April 28, 2006).
(f)	Incorporated herein by reference to the exhibits filed with Registration Statement No. 333-120600 (filed April 28, 2008).
(g)	Incorporated herein by reference to the exhibits filed with Registration Statement No. 333-142084 (filed April 30, 2014).

Name and Principal Business Address	Positions and Offices with Depositor
Michael P. Kiley*	Chairman of the Board, Chief Executive Officer, and Director
Peggy S. Avey 800 Westchester Avenue, Suite 641N. Rye Brook, New York 10573	Assistant Vice President, Chief Administrative Officer and Assistant Secretary
Barry G. Ward	Vice President, Chief Financial Officer, Chief Risk Officer, Treasurer, and Director
John F. Guyot*	Vice President, General Counsel, Secretary, and Director
Anthony D. Minella	Vice President, Chief Investment Officer, and Director
Susan Lacey	Vice President and Controller
Stephen A. Crane 480 Park Avenue New York, NY 10022	Director
Wayne S. Diviney 9496 Bay Front Drive Norfolk, VA 23518	Director
Stephen R. Herbert 1100 Summer Street Stamford, CT 06905	Director
Katherine P. White 1035 5th Avenue, Apt. 14D New York, NY 10028	Director
Douglas G. Wolff*	President and Director
Jeanne R. Slusher*	Vice President and Auditor
Roger S. Offerman*	Vice President, Lead Actuary and Director
Christopher D. Swickard*	Associate General Counsel and Assistant Secretary
Carmen R. Hill*	Chief Compliance Officer
*Located at One Security Benefit Place, Topeka, Kansas 66636-0001.

Name	Position with Underwriter
Edward C. Bernard	Chairman of the Board, Director, and President
Scott B. David	Director and Vice President
Stephanie P. Mumford	Chief Compliance Officer and Vice President
David Oestreicher	Director, Vice President, and Secretary
William W. Strickland, Jr.	Director and Vice President
Constante R. Abaya	Vice President
Cheryl L. Armitage	Vice President
Steven J. Banks	Vice President
Cheri M. Belski	Vice President
Bryan Keith Blackmon	Vice President
Darrell N. Braman	Vice President
Michael D. Brinegar	Vice President
Martin P. Brown	Vice President
Margo B. Bryant	Vice President
Sheila P. Callahan	Vice President
Meredith C. Callanan	Vice President
Christopher E. Carpenter	Vice President
Laura H. Chasney	Vice President
Dominick A. Cipolla	Vice President
Jerome A. Clark	Vice President
Basil Clarke	Vice President
Kathleen M. Coates	Vice President
Colleen S. Councell	Vice President
Anne M. Coveney	Vice President
Mark Cover	Vice President
Christina P. Cragg	Vice President
Keith M. Crouse	Vice President
Joseph A. Crumbling	Vice President
Benjamin P. DeFelice	Vice President
Peter A. DeLibro	Vice President
Lauren D. DeLuca	Vice President
Sanjeev K. Dev	Vice President
Timothy S. Dignan	Treasurer and Vice President
Cynthia L. Dougaree	Vice President
Jean M. Dunn	Vice President
Heather C. Dzielak	Vice President
David J. Eikenberg	Vice President
Dennis J. Elliott	Vice President
James P. Erceg	Vice President
Richard A. Fernandez	Vice President
Andrew Fluet	Vice President

Gina Lea Franke	Vice President
Christopher M. Gaeng	Vice President
Thomas A. Gannon	Vice President
Michele J. Giangrande	Vice President
John R. Gilner	Vice President
Andrew C. Goeller	Vice President
Ernesto Gordon, Jr.	Vice President
Jason L. Gounaris	Vice President
Leah B. Greenstein	Vice President
Seth Gusman	Vice President
Brian L. Habas	Vice President
John Halaby	Vice President
Douglas E. Harrison	Vice President
Philip E. Hauser	Vice President
Jeffrey J. Hill	Vice President
Keller L. Hoak	Vice President
Christopher J. Hufman	Vice President
Karen J. Igler	Vice President
Daniel M. Jarrett	Vice President
Audra M. Jones	Vice President
Heidi C. Kaney	Vice President
Thomas E. Kazmierczak, Jr.	Vice President
Jonathan Keeler	Vice President
Jeffrey A. Krawczak	Vice President
Michael J. Kubik	Vice President
Andrew V. Kyle	Vice President
Steven A. Larson	Vice President
Keith W. Lewis	Vice President
Jane E. Maccubbin	Vice President
Karen M. Magness	Vice President
Michael A. McKenna	Vice President
Sebastian J. Mitchell	Vice President
Daniella Moiseyev-Cunniffe	Vice President
Thomas R. Morelli	Vice President
Dana P. Morgan	Vice President
Amy B. Murphy	Vice President
T. Michael Murphy	Vice President
Paul Musante	Vice President
Kevin M. O’Brien	Vice President
Barbara A. O’Connor	Controller and Vice President
Anna T. Onishi	Vice President
Wayne Park	Vice President
Glenn A. Pendleton	Vice President
David B. Petty	Vice President
John E. Pflieger	Vice President
Gregory L. Phillips	Vice President
Fran M. Pollack-Matz	Vice President

	File No. 33-83240
Filed on April 30, 2014	File No. 811-8726

Brian R. Poole	Vice President
Naomi S. Proshan	Vice President
Seamus A. Ray	Vice President
Margaret H. Raymond	Vice President
Michael D. Regulski	Vice President
Jennifer L. Richardson	Vice President
George D. Riedel	Vice President
Mark B. Ruhe	Vice President
Megan Keyser Rumney	Vice President
Kevin C. Savage	Vice President
Christie C. Savio	Vice President
Dorothy C. Sawyer	Vice President
Jason M. Scarborough	Vice President
Mark A. Scarborough	Vice President
Ann R. Schultz	Vice President
Deborah D. Seidel	Vice President
Robert A. Seidel	Vice President
Karen M. Sheehan	Vice President
Nicholas A. Sheppard	Vice President
Scott L. Sherman	Vice President
Jae M. Shin	Vice President
Donna B. Singer	Vice President
Carole Hofmeister Smith	Vice President
Ian M. Smith	Vice President
Craig J. St. Thomas	Vice President
Stephanie S. Stearman	Vice President
Sandra L. Stinson	Vice President
Scott Such	Vice President
Christopher J. Theall	Vice President
John M. Townsend	Vice President
Alan P. Valenca	Vice President
Adam J. Varga	Vice President
Eric P. Wagner	Vice President
John H. Wallick	Vice President
Douglas A. Weaver	Vice President
William R. Weker, Jr.	Vice President
Donald J. Weldon, Jr.	Vice President
Lois A. Welsh	Vice President
Mary Ellen Whiteman	Vice President
Natalie C. Widdowson	Vice President
Barrett Wragg	Vice President
Lea B. Wray	Vice President
James Zurad	Vice President

	FIRST SECURITY BENEFIT LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
	(The Depositor)

	T. ROWE PRICE VARIABLE ANNUITY ACCOUNT OF FIRST SECURITY BENEFIT LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
	(The Registrant)

	By:	*
		Michael P. Kiley, Director and Chief Executive Officer

By:	*
	Michael P. Kiley, Chief Executive Officer and Director

By:	*
	Barry G. Ward, Vice President, Chief Financial Officer, Chief Risk Officer, Treasurer, and Director (chief accounting officer)

By:	*
	John F. Guyot, Vice President, General Counsel, Secretary, and Director

By:	*
	Anthony D. Minella, Vice President, Chief Investment Officer, and Director

By:	*
	Roger S. Offermann, Vice President, Lead Actuary and Director

By:	*
	Douglas G. Wolff, Director

By:	*
	Katherine P. White, Director

*By:	CHRIS SWICKARD
	Chris Swickard, as Attorney-in-Fact