investment risk-based capital (e) working group · 2020-02-21 · 1 . date: 2/21/20 . investment...

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Date: 2/21/20

INVESTMENT RISK-BASED CAPITAL (E) WORKING GROUP

Tuesday, February 25, 2020 2:30 p.m. CT

ROLL CALL

Kevin Fry, Chair Illinois Tish Becker Kansas Philip Barlow, Vice Chair District of Columbia Anna Taam New York Kathy Belfi Connecticut Tom Botsko Ohio David Altmaier Florida Steven Drutz Washington Carrie Mears Iowa Richard Hinkel Wisconsin NAIC Support Staff: Jane Barr

AGENDA

1. Discuss Comments Received Regarding Bond Proposals

a. American Academy of Actuaries (Academy)—Nancy Bennett (Academy) b. American Council of Life Insurers (ACLI)—Steven M. Clayburn (ACLI) c. National Association of Mutual Insurance Companies (NAMIC)—Jonathan

Rodgers (NAMIC) d. Sapiens StatementPro—Connie Jasper Woodroof (Sapiens StatementPro)

2. Consider Re-expose Bond Proposals—Kevin Fry (IL)

a. Health b. Property and Casualty c. Life

3. Discuss Any Other Matters Brought Before the Working Group—Kevin Fry (IL)

4. Discuss Any Other Matters

Attachment A Attachment B Attachment C

Attachment D

Attachment E Attachment F Attachment G

W:\National Meetings\2020\Spring\TF\CapAdequacy\IRBC\02-25 CC.doc

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1850 M Street NW Suite 300 Washington, DC 20036 Telephone 202 223 8196 Facsimile 202 872 1948 www.actuary.org

February 14, 2020

Mr. Tom Botsko Chair, Capital Adequacy (E) Task Force National Association of Insurance Commissioners (NAIC) Via email to: Jane Barr, NAIC Staff ([email protected])

RE: RBC Proposal 2019-16-1—Incorporate 20 designations for bonds

Dear Tom,

On behalf of the C-1 Work Group (C1WG) of the American Academy of Actuaries,1 we appreciate the opportunity to provide comments on the Capital Adequacy (E) Task Force (CADTF) proposal to expand the number of bond factors in the Life Risk-Based Capital (LRBC) formula. We support the expansion of the bond designations to better capture the credit risk within an insurer’s portfolio. Generally, we recommend the expansion to a 20-factor structure for any asset type that currently utilizes a six-factor structure.

This expansion also facilitates the calculation of LRBC based on the C-1 bond factors recommended by the C1WG. Expanding to the 20 designations would eliminate the large jumps in the LRBC factors between NAIC bond designations.

The exposure does not expand the number of C-1 factors for all asset types that currently utilize a six-factor calculation structure for C-1 and retains the current six-factor calculation. The LRBC C-1 calculation for bonds and preferred stock reported on Schedule D relies on a security’sdesignation, primarily assigned by a Nationally Recognized Statistical Rating Organization(NRSRO) with certain exemptions. Generally, NRSROs base their assigned rating on a GlobalRatings Process, where risk differences are theoretically neutralized and result in equivalentratings. In the Global Ratings Processes, different asset types with similar credit losscharacteristics will receive equivalent ratings. The C1WG’s analysis that support an expansionfrom six to 20 factors recognizes this anticipated equivalence in the Global Ratings Process. TheC1WG supports the consistent application of C1 RBC factors for assets subject to the GlobalRatings Process. We see no reason to simplify the C1 calculation, especially in light of theelectronic data feeds that underlie the LRBC calculation.

1 The American Academy of Actuaries is a 19,500-member professional association whose mission is to serve the public and the U.S. actuarial profession. For more than 50 years, the Academy has assisted public policymakers on all levels by providing leadership, objective expertise, and actuarial advice on risk and financial security issues. The Academy also sets qualification, practice, and professionalism standards for actuaries in the United States.

Attachment A

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mailto:[email protected]

https://www.actuary.org/sites/default/files/files/publications/Academy_C1WG_Comments_to_NAIC_IRBC_101017.pdf

1850 M Street NW Suite 300 Washington, DC 20036 Telephone 202 223 8196 Facsimile 202 872 1948 www.actuary.org

To expand on the point above, the exposure does not expand the designations for unaffiliated preferred stock (LR005, lines 1-6), Surplus and Capital Notes (LR008) or Derivative Instruments (LR017, lines 16-23). The methodologies used by NRSROs for assigning ratings for preferred stock and surplus/capital notes are similar to the methodologies used for bonds; therefore, using the same C-1 factors is appropriate. Derivatives are used to hedge the credit risk of an insurer’s bond portfolio. As such, it would be logical to align the number of designations for the bonds and derivatives.

The exposure would delete the lines for the C-1 calculation for hybrid securities. We assume the reason for this proposed deletion is to simplify the LRBC spreadsheet, rather than to change the required capital for hybrid securities. It would be useful to note the reason for this deletion (e.g., hybrids are included in the Bond Asset Valuation Reserve (AVR) Component, and therefore, included in LR002, lines for Long-term Bonds).

The exposure is not expanding the number of factors for Separate Accounts with Guarantees or Synthetic Guaranteed Investment Contracts (GICs) (LR006). The Separate Accounts that utilize fixed income assets can hold identical assets to those in the General Account. Similarly, Synthetic GICs, which provide guarantees to trusts held external to life insurance companies, also utilize fixed income assets. The C1WG recommends the expansion to the 20-factor structure for Separate Accounts with Guarantees (LR006, line 1 Indexed Class I Strategies and lines 2-3) and Synthetic GICs (LR006, line 8). We note that this calculation for Separate Account Guarantees originates from company records and is not explicitly detailed in the LRBC Instructions; however, we believe that it should be understood that companies performing this calculation will replace the six-factor structure with the 20-factor structure for that purpose.

Expanding to the 20-factor designation structure for all asset types that currently use the six-factor structure is an important step to improving the calculation of required capital. We understand that the AVR blank will be modified to support the expansion of the 20 factors. We support adoption of the AVR and LRBC changes at the same time.

Thank you for your consideration of our comments. Please contact Nancy Bennett ([email protected]) with any questions.

Sincerely,

Nancy Bennett, MAAA, FSA, CERA Co-chairperson, C-1 Work Group American Academy of Actuaries

Jerry Holman, MAAA, FSA, CFA Co-chairperson, C-1Work Group American Academy of Actuaries

Copy: Kevin Fry, Chair, NAIC Investment Risk-Based Capital (E) Work Group

Attachment A

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Steven Clayburn Senior Actuary, Health Insurance & Reinsurance

February 14, 2020

Ms. Jane Barr Company Licensing & RBC Manager NAIC Capital Adequacy Task Force

via email: [email protected]

Re: 2019-16-CA Bond Structure Exposure – Comments on Life RBC Blank

Greetings:

The American Council of Life Insurers (ACLI) appreciates the opportunity to comment on the life RBC structural changes to expand from 6 categories to 20 categories. ACLI is the leading trade association driving public policy and advocacy on behalf of the life insurance industry. Ninety million American families rely on the life insurance industry for financial protection and retirement security. ACLI’s member companies are dedicated to protecting consumers’ financial wellbeing through life insurance, annuities, retirement plans, long-term care insurance, disability income insurance, reinsurance, and dental, vision and other supplemental benefits. ACLI’s 280 member companies represent 94 percent of industry assets in the United States.

ACLI continues to support the expansion of the bond factors from 6 categories to 20 categories. Overall, we do not have any concerns about the proposed structure changes. We do offer the following observations.

Understanding this exposure was for structure only, it would have been helpful to have the updated RBC instructions that showed the changes with these lines and references to help in our review. It is our understanding that the instructions were to be updated to clarify language for line item (22) – which removes the reference to NAIC 1 in the non-exempt US Government Agency line. NAIC staff stated in part during the October 20, 2016 conference call that NAIC staff could provide clarifying language in the instructions regarding the bonds to be included in this line; and agreed that these bonds should be given the top NAIC 1 designation.

We agree with the change in the schedule for hybrids, that is, deleting the lines for hybrid securities on page LR005 and including these hybrid amounts on LR002. This change will allow information to pull directly from the AVR Default Worksheet as that worksheet includes hybrid securities.

For the sake of clarity, analysis of the impact of expansion to 20 factors should explicitly identify the current scope of proposed changes as limited to those reflected in the exposed 2019-16-CA updates to the RBC blanks and instructions. If, in the future, the Task Force considers extending this 20-factor paradigm beyond the scope reflected in the current exposure, it should be introduced, considered and analyzed as a separate and distinct proposal.

As part of that future consideration, we note that there is a need for clarification of the new instructions beyond what we outlined above. Some questions that arose during our review include: For the AVR portion, will there be changes to Separate Account reporting? Will the new rating expansion also apply to Schedule BA assets? Has the Task Force explored all the potential implementation issues and consequences if there are more exhibits that includes NAIC 1 – 6 ratings (than just identified) that will be addressed? We remain ready to work with the Task Force to continue identifying and addressing any outstanding issues.

Attachment B

5

of 2

Again, thank you for the opportunity to comment in support of the exposed structural changes.

Sincerely,

Steven M. Clayburn, FSA, MAAA

Attachment B

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February 14, 2020

Director Jillian Froment Chair, Capital Adequacy (E) Task Force National Association of Insurance Commissioners 1100 Walnut Street, Suite 1500 Kansas City, MO 64106

VIA Email Transmission: [email protected]; [email protected]

RE: NAMIC Comments on Incorporating the 20 Designations for Bonds Structure into the RBC Formula to Conduct an Impact Analysis

Dear Ms. Froment:

The following comments are submitted on behalf of the member companies of the National Association of Mutual Insurance Companies1 regarding the proposal 2019-16-CA that was exposed for a 45-day comment period on a Capital Adequacy (E) Task Force conference call on Dec. 30. NAMIC appreciates the opportunity to comment on this proposal, as we have been monitoring this project for years and have provided extensive comments to the Investment Risk-Based Capital (E) Working Group on various proposals that, if adopted, would expand the number of bond designations in the Property & Casualty RBC formula from six to 20. Understanding that both the Blanks (E) Working Group and the Security Valuation Office have already adopted the 20 bond designations for year-end reporting, our comments will focus exclusively on the impact analysis that is being planned for 2021 based on 2020 reporting.

Historically the NAIC has performed field-testing or impact assessments on new or amended factors included in the various RBC formulas, including field-testing on catastrophe risk, operational risk, and the group capital calculation or impact assessments on changes to reinsurance or underwriting/reserve factors. For any potential change to the RBC formula, the method of studying the impact or testing the new approach is welcomed by NAMIC members. As it regards to the changes contemplated by the Task Force and the IRBCWG, NAMIC is supportive of conducting an impact analysis of the 20 new bond designations against the current factors for designations 1-6.

1 NAMIC is the largest property/casualty insurance trade association in the country, with more than 1,400-member companies representing 39 percent of the total market. NAMIC supports regional and local mutual insurance companies on main streets across America and many of the country’s largest national insurers. NAMIC member companies serve more than 170 million policyholders and write more than $230 billion in annual premiums. Our members account for 54 percent of homeowners, 43 percent of automobile, and 32 percent of the business insurance markets. Through our advocacy programs we promote public policy solutions that benefit NAMIC member companies and the policyholders they serve and foster greater understanding and recognition of the unique alignment of interests between management and policyholders of mutual companies.

Attachment C

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The IRBCWG has been considering whether more consistency between the factors used by the different statement types (Life, P/C, and Health) is appropriate, including bond factors. As NAMIC has stated in comment letters to the working group, we have concerns about a decision to require the P/C investment risk factors to be the same as the life or health factors without consideration about how any change would be incorporated in, and impacted by, the rest of the P/C formula. Conducting a full impact assessment that reviews how the new factors interact with other elements of the P/C RBC formula will help decision makers appreciate the differences between the various formulas.

As part of the overall impact analysis and subsequent decision-making, NAMIC members believe it is important to conduct a cost/benefit analysis. In the context of providing benefit to regulators, it is important to consider the overall purpose of RBC when contemplating changes to the RBC formula. The focus of RBC is for regulators to have the ability to identify weakly capitalized companies; therefore, any changes to the formula should be one that serves a meaningful purpose to achieve that goal. When other such changes to investment factors have been contemplated in the past, it was noted that investment risk in general is a relatively minor risk compared with underwriting and reserve risks as it relates to the overall formula for P/C RBC.

As the Task Force and other NAIC working groups review the impact analysis, it is our hope that any potential decisions will be made based on the information gathered during the impact analysis. Further, it is our anticipation that the Task Force will expose the impact analysis for public comment when it becomes available and it will include various scenarios and factors tested. Like impact analyses of the past, NAMIC members are interested in reviewing how many companies would move into the different RBC action levels based on the tested factors and scenarios.

Thank you for your consideration of these comments on this matter of importance to NAMIC, its member companies and their policyholders. If there are any questions, please feel free to contact me at 317-876-4206.

Sincerely,

Jonathan Rodgers Director of Financial and Tax Policy National Association of Mutual Insurance Companies

Attachment C

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REFERENCED COMMENTS AT BOTTOM

Asset Category Annual Statement Source

Off-Balance Sheet Collateral

Book/Adjusted Carrying Value

Schedule DL, Part 1 Book/Adjusted Carrying Value Subtotal Factor RBC Requirement

Fixed Income AssetsBonds

(1)NAIC 01 - U.S. Government - Direct and Guaranteed and SVO Indentified Funds - Bond Mutual Funds Company Records 0.000

(2) NAIC Designation Category 1.A Bonds Company Records 0.001(3) NAIC Designation Category 1.B Bonds Company Records 0.001(4) NAIC Designation Category 1.C Bonds Company Records 0.001(5) NAIC Designation Category 1.D Bonds Company Records 0.002(6) NAIC Designation Category 1.E Bonds Company Records 0.003(7) NAIC Designation Category 1.F Bonds Company Records 0.005(8) NAIC Designation Category 1.G Bonds Company Records 0.007(9) Total NAIC 01 Bonds (See comment A) L(2) + L(3) + L(4) +L(5) + L(6) + L(7) + L(8)

(10) NAIC Designation Category 2.A Bonds Company Records 0.010(11) NAIC Designation Category 2.B Bonds Company Records 0.012(12) NAIC Designation Category 2.C Bonds Company Records 0.015(13) Total NAIC 02 Bonds L(10) + L(11) + L(12)(14) NAIC Designation Category 3.A Bonds Company Records 0.069(15) NAIC Designation Category 3.B Bonds Company Records 0.076(16) NAIC Designation Category 3.C Bonds Company Records 0.083(17) Total NAIC 03 Bonds L(14) + L(15) + L(16)(18) NAIC Designation Category 4.A Bonds Company Records 0.089(19) NAIC Designation Category 4.B Bonds Company Records 0.097(20) NAIC Designation Category 4.C Bonds Company Records 0.110(21) Total NAIC 04 Bonds L(18) + L(19) + L(20)(22) NAIC Designation Category 5.A Bonds Company Records 0.123(23) NAIC Designation Category 5.B Bonds Company Records 0.137(24) NAIC Designation Category 5.C Bonds Company Records 0.151(25) Total NAIC 05 Bonds L(22) + L(23) + L(24)(26) Total NAIC 06 Bonds Company Records 0.300(27) Total Bonds (See comment B) L(9)+L(13)+L(17)+L(21)+L(25)+L(26)

Equity AssetsPreferred Stock - Unaffiliated

(28) NAIC 01 Unaffiliated Preferred Stock Company Records 0.003(29) NAIC 02 Unaffiliated Preferred Stock Company Records 0.010(30) NAIC 03 Unaffiliated Preferred Stock Company Records 0.020(31) NAIC 04 Unaffiliated Preferred Stock Company Records 0.045(32) NAIC 05 Unaffiliated Preferred Stock Company Records 0.100(33) NAIC 06 Unaffiliated Preferred Stock Company Records 0.300(34) Total Unaffiliated Preferred Stock Sum of Lines (28) through (33)

(35) Common Stock Company Records 0.150

(36) Real Estate and Property & Equipment Assets Company Records 0.100

(37) Other Invested Assets Company Records 0.200

(38) Mortgage Loans on Real Estate Company Records 0.050

(39) Cash, Cash Equivalents and Short-Term Investments Company Records 0.003(Not reported on Bonds above)

(40) Total L(27)+L(34)+L(35)+L(36)+L(37)+L(38)+L(39)

Denotes items that must be manually entered on the filing software.

COMMENTS

A. Line (9) calculation does not include amount Line (1); therefore it is not "Total NAIC 01 Bonds." It does reflect total NAIC 01 bonds subject to RBC.Additionally, shouldn't the calculation on this page for line (9) work the same way as Line (9) on PR007.1? They are different.

B. Line 27 is not total bonds, as Line 9 does not include Line 1. See comment A directly above.

OFF-BALANCE SHEET SECURITY LENDING COLLATERAL AND SCHEDULE DL, PART 1 ASSETS

XR006

Attachment D

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FIXED INCOME ASSETS REFERENCED COMMENTS AT BOTTOM (1) (2)

RBC Electronic only Tables Source (See comment A) Book/Adjusted Carrying Value Factor RBC Requirement

BONDS

(1)NAIC 01 - U.S. Government - Direct and Guaranteed and SVO Identified Funds - Bond Mutual Funds

Table A C(2) + C(4) + C(6) L(1) (see comment B) 0 0.000

(2) NAIC Designation Category 1.A Bonds Table A C(7 10) L(1) (see comment C) 0 0.001 0

(3) NAIC Designation Category 1.B Bonds Table A C(7) L(2) 0 0.001 0(4) NAIC Designation Category 1.C Bonds Table A C(7) L(3) 0 0.001 0(5) NAIC Designation Category 1.D Bonds Table A C(7) L(4) 0 0.002 0(6) NAIC Designation Category 1.E Bonds Table A C(7) L(5) 0 0.003 0(7) NAIC Designation Category 1.F Bonds Table A C(7) L(6) 0 0.005 0(8) NAIC Designation Category 1.G Bonds Table A C(7) L(7) 0 0.007 0(9) Total NAIC 01 Bonds Sum of Ls (1) through (8) 0 0(10) NAIC Designation Category 2.A Bonds Table A C(7) L(8) 0 0.010 0(11) NAIC Designation Category 2.B Bonds Table A C(7) L(9) 0 0.012 0(12) NAIC Designation Category 2.C Bonds Table A C(7) L(10) 0 0.015 0(13) Total NAIC 02 Bonds Sum of Ls (10) through (12) 0 0(14) NAIC Designation Category 3.A Bonds Table A C(7) L(11) 0 0.069 0(15) NAIC Designation Category 3.B Bonds Table A C(7) L(12) 0 0.076 0(16) NAIC Designation Category 3.C Bonds Table A C(7) L(13) 0 0.083 0(17) Total NAIC 03 Bonds Sum of Ls (14) through (16) 0 0(18) NAIC Designation Category 4.A Bonds Table A C(7) L(14) 0 0.089 0(19) NAIC Designation Category 4.B Bonds Table A C(7) L(15) 0 0.097 0(20) NAIC Designation Category 4.C Bonds Table A C(7) L(16) 0 0.110 0(21) Total NAIC 04 Bonds Sum of Ls (18) through (20) 0 0(22) NAIC Designation Category 5.A Bonds Table A C(7) L(17) 0 0.123 0(23) NAIC Designation Category 5.B Bonds Table A C(7) L(18) 0 0.137 0(24) NAIC Designation Category 5.C Bonds Table A C(7) L(19) 0 0.151 0(25) Total NAIC 05 Bonds Sum of Ls (22) through (24) 0 0(26) Total NAIC 06 Bonds Table A C(1) + C(3) + C(5) L(20) 0 0.300 0

(27) Total Bonds RBC = L(9) + L(13) + L(17) + L(21) + L(25) + L(26) 0 0

COMMENTS

XR007.1

Attachment D

10

A. Column title should specifically reference RBC Electronic Tables. "Only" is really not needed.

B. The reference refers to incorrect Table A column numbers. Correct column numbers would be (2), (3), (4), (5), (7) and (8).In addition, the line description for Line (1) says "NAIC 01…." The Table A reference to Line (1) would include only those US Govs and/or SVO Identified Bond Funds that have a NAIC Designation Category of 1.A. Is it possible that US Govs and/orSVO Identified Bond Funds would have Designation Categories of 1.B, 1.C, 1.D, 1.E, 1.F or 1.G? See also comment A for Table A.

C. All references to Table A for Lines (2) through (26) refer to Column (7). Column (7) reports total bonds from Schedule E, Part 2 only. The intent was probably to reference Column (10).This is also related to Comment A for Table A (XR007.14)

XR007.1

Attachment D

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(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)Table A

RBC Bond Categories

Total Bonds (Sch D, Pt1, C11) (See comment B)

NAIC 01 - U.S. Government Direct and

Guaranteed(Sch D, Pt1, C11,

L0599999)

SVO Identified Funds - Bond Mutal Funds

(Sch D Pt1 C11 L5999999)

Total Bonds (Sch DA, Pt1,

C7) (See comment B)


Guaranteed(Sch DA, Pt1,

C7, L0599999)


(Sch D Pt1 C11 L5999999)

Total Bonds (Sch E, Pt2, C7) (See comment B)


Guaranteed(Sch E, Pt2, C7,

L0599999)


(Sch D Pt1 C11 L5999999)

BondsC(1)+C(4)+C(7)-

C(2)-C(3)-C(5)-C(6)-C(8)-C(9)

(See comment C)(1) NAIC Designation Category 1.A 0 0 0 0 0 0 0(2) NAIC Designation Category 1.B 0 xxx 0 xxx 0 xxx 0(3) NAIC Designation Category 1.C 0 xxx 0 xxx 0 xxx 0(4) NAIC Designation Category 1.D 0 xxx 0 xxx 0 xxx 0(5) NAIC Designation Category 1.E 0 xxx 0 xxx 0 xxx 0(6) NAIC Designation Category 1.F 0 xxx 0 xxx 0 xxx 0(7) NAIC Designation Category 1.G 0 xxx 0 xxx 0 xxx 0(8) NAIC Designation Category 2.A 0 xxx 0 xxx 0 xxx 0(9) NAIC Designation Category 2.B 0 xxx 0 xxx 0 xxx 0

(10) NAIC Designation Category 2.C 0 xxx 0 xxx 0 xxx 0(11) NAIC Designation Category 3.A 0 xxx 0 xxx 0 xxx 0(12) NAIC Designation Category 3.B 0 xxx 0 xxx 0 xxx 0(13) NAIC Designation Category 3.C 0 xxx 0 xxx 0 xxx 0(14) NAIC Designation Category 4.A 0 xxx 0 xxx 0 xxx 0(15) NAIC Designation Category 4.B 0 xxx 0 xxx 0 xxx 0(16) NAIC Designation Category 4.C 0 xxx 0 xxx 0 xxx 0(17) NAIC Designation Category 5.A 0 xxx 0 xxx 0 xxx 0(18) NAIC Designation Category 5.B 0 xxx 0 xxx 0 xxx 0(19) NAIC Designation Category 5.C 0 xxx 0 xxx 0 xxx 0(20) NAIC 06 0 xxx 0 xxx 0 xxx 0(21) Total C(1) 0 0 0 0 0 0 0

COMMENTS

A. By placing XXXs in columns (2), (5), (8), it appears the assumption is being made that all U.S. Govs will have an NAIC Designation Category of 1.A.Is that a valid assumption? Will U.S. Govs not have designation categories of 1.B, 1.C, 1D, 1E, 1F or 1G?In addition, the Property RBC Table A has XXXd out SVO Identified Bond Funds (3,6,9) on all lines except Table A, Line (1); the HRBC Table A does not. Shouldn't the treatment/presentationof the Bond Funds be consistant? Can SVO-Identified Bond Funds have categories of 1.B, 1.C, 1D, 1E, 1F or 1G? Can the Bond Funds have designatin categories of other than "1?" For example, 2.A, 2.B, 2C?

B. For Table A to be effective, a statement line reference should be included for all columns. Line references are missing for columns (1), (4), (7).

C. Except for Line (1), the calculation showing in the columnar description for column (10) is not what the the excel spreadsheet is doing.

Schedule D, Part 1 - Long Term Bonds: (See comment A) Schedule DA, Part 1 - Short Term Bonds: Schedule E, Part 2 - Cash Eqivalents:

Attachment D

12

Table B - Crosscheck: (1) (2) (3)

Annual StatementSchedule D, Part

1A, Section 1, Column 7 RBC XR007.1, Column (1) Annual Statement RBC Report Difference

(1) NAIC 01 Line 11.1 L(9) 0 0 0(2) NAIC 02 Line 11.2 L(13) 0 0 0(3) NAIC 03 Line 11.3 L(17) 0 0 0(4) NAIC 04 Line 11.4 L(21) 0 0 0(5) NAIC 05 Line 11.5 L(25) 0 0 0(6) NAIC 06 Line 11.6 L(26) 0 0 0

Denotes items that must be vendor linked.

COMMENTS

1. The references to Lines 11.1, 11.2, 11.3, 11.4, 11.5 and 11.6 of Sch D - Part 1A include all SVO Identified Funds as reported in Section 9 of D1A. This is both Bond Funds and ETFs. The HRBC formula appears to include only Bond Funds, not ETFs. Therefore the crosschecks between Schedule D - Part 1A, Section 1 and XR007.1 will not work. See Table A comment A, for further comments that could affect the crosschecks.

COMMENTS AT BOTTOM

Attachment D

13

FIXED INCOME ASSETS (cont.)MISCELLANEOUS FIXED INCOME ASSETS (1) (2)

Annual Statement Source Bk/Adj Carrying Value Factor RBC Requirement(28) Cash Page 2, Line 5, inside amount 1 0.0030(29) Cash Equivalents Page 2, Line 5, inside amount 2(30) Less: Cash Equivalent, Bonds included in Schedule D, Part 1A Sch E Pt 2, C7, L8399999, in part(31) Less: Exempt Money Market Mutual Funds* Sch E Pt 2, C7, L8599999(32) Net Cash Equivalents L(29) - L(30) - L(31) 0.0030(33) Short-Term Investments Page 2, Line 5, inside amount 3(34) Short-Term Bonds * Sch DA, Pt 1, Col 7, L8399999(35) Total Other Short-Term Investments L(33)-L(34) 0.0030(36) Mortgage Loans - First Liens Page 2, Col 3, Line 3.1 0.0500(37) Mortgage Loans - Other Than First Liens Page 2, Col 3, Line 3.2 0.0500(38) Receivable for Securities Page 2, Col 3, Line 9 0.0240(39) Aggregate write-ins for invested assets Page 2, Col 3, Line 11 0.0500(40) Collateral Loans Included in Page 2, Col 3, Line 8 0.0500(41) NAIC 01 Working Capital Finance Investments Notes to Financial Statement 5M(01a), Col. 3 0.0038(42) NAIC 02 Working Capital Finance Investments Notes to Financial Statement 5M(01b), Col. 3 0.0125

(43)Other Long-Term Invested Assets Excluding Collateral Loans andWorking Capital Finance Investments Included in Page 2, Col 3, Line 8 0.2000

(44) Federal Guaranteed Low Income Housing Tax Credits Schedule BA Part 1, Column 12 Lines 3199999 + 3299999 0.0014

(45) Federal Non-Guaranteed Low Income Housing Tax Credits Schedule BA Part 1, Column 12 Lines 3399999 + 3499999 0.0260

(46) State Guaranteed Low Income Housing Tax Credits Schedule BA Part 1, Column 12 Lines 3599999 + 3699999 0.0014

(47) State Non-Guaranteed Low Income Housing Tax Credits Schedule BA Part 1, Column 12 Lines 3799999 + 3899999 0.0260

(48) All Other Low Income Housing Tax Credits Schedule BA Part 1, Column 12 Lines 3999999 + 4099999 0.0150

(49) Total Other Long-Term Invested Assets (Page 2, Col 3, Line 8) L(40)+L(41)+L(42)+L(43)+L(44)+L(45)+L(46)+L(47)+ L(48)

(50) Derivatives Page 2, Col 3, Line 7 0.0500

L(27)+L(28)+L(32)+L(35)+L(36)+L(37)+L(38)(51) Total Fixed Income Assets RBC +L(39)+L(49)+L(50) (see Comment A)

Denotes items that must be manually entered on filing software.

* These bonds appear in Schedule D Part 1A Section 1 and are already recognized in the Bond portion of the formula.

COMMENTS AT BOTTOM

XR007.2

Attachment D

14

COMMENTS

A. If the displayed page numbering system is maintained, this referenced calculation for Line (5) needs to be changed because L(27) is on a different page.The reference should be changed to XR007.1, L(27) + PR007.2, Lines (28)+(32)+(35)+(36)+(37)+(38)+(39)+(49)+(50).

XR007.2

Attachment D

15

EQUITY ASSETS(1) (2)

Annual Statement Source Bk/Adj Carrying Value Factor RBC RequirementPREFERRED STOCK - UNAFFILIATED

(1) NAIC 01 Preferred Stock Included in Sch D, Pt 2, Sn 1 0.003(2) NAIC 02 Preferred Stock Included in Sch D, Pt 2, Sn 1 0.010(3) NAIC 03 Preferred Stock Included in Sch D, Pt 2, Sn 1 0.020(4) NAIC 04 Preferred Stock Included in Sch D, Pt 2, Sn 1 0.045(5) NAIC 05 Preferred Stock Included in Sch D, Pt 2, Sn 1 0.100(6) NAIC 06 Preferred Stock Included in Sch D, Pt 2, Sn 1 0.300(7) Total - Unaffiliated Preferred Stock Sum of Lines (1) through (6)

(8) NAIC 01 Hybrid Securities Sch D, Pt 1A, Sn 1, Col 7, Line 7.1 0.003(9) NAIC 02 Hybrid Securities Sch D, Pt 1A, Sn 1, Col 7, Line 7.2 0.010

(10) NAIC 03 Hybrid Securities Sch D, Pt 1A, Sn 1, Col 7, Line 7.3 0.020(11) NAIC 04 Hybrid Securities Sch D, Pt 1A, Sn 1, Col 7, Line 7.4 0.045(12) NAIC 05 Hybrid Securities Sch D, Pt 1A, Sn 1, Col 7, Line 7.5 0.100(13) NAIC 06 Hybrid Securities Sch D, Pt 1A, Sn 1, Col 7, Line 7.6 0.300(14) Subtotal - Hybrid Securities Sum of Lines (8) through (13)

(15) Total Unaffiliated Preferred Stock and Hybrids Line (7) + Line (14)

COMMON STOCK - UNAFFILIATED(8) Federal Home Loan Bank Stock Company Records 0.023(9) Non-Government Money Market Funds Sch D Pt 2 Sn 2 Col 6 Line 9399999 0.000(10) Total Common Stock Sch D, Summary, Col 1, Line 25(11) Affiliated Common Stock Sch D, Summary, Col 1, Line 24(12) Other Unaffiliated Common Stock L(10)-L(8)-L(9)-L(11) $0 0.150(13) Total Unaffiliated Common Stock L(8)+L(9)+L(12) $0


(Should equal Page 2, Col 3, Line 2.1 less Sch D Sum, Col 1, L18)

HYBRID SECURITIES - UNAFFILIATED

XR009

Attachment D

16

ASSET CONCENTRATION

Issuer Name (2) (3)

Bk/Adj Carrying Value Factor Additional RBC(1) NAIC Designation Category 2.A Bonds 0.0100(2) NAIC Designation Category 2.B Bonds 0.0120(3) NAIC Designation Category 2.C Bonds 0.0150(4) NAIC Designation Category 3.A Bonds 0.0690(5) NAIC Designation Category 3.B Bonds 0.0760(6) NAIC Designation Category 3.C Bonds 0.0830(7) NAIC Designation Category 4.A Bonds 0.0890(8) NAIC Designation Category 4.B Bonds 0.0970(9) NAIC Designation Category 4.C Bonds 0.1100

(10) NAIC Designation Category 5.A Bonds 0.1230(11) NAIC Designation Category 5.B Bonds 0.1370(12) NAIC Designation Category 5.C Bonds 0.1490(13) Collateral Loans 0.0500(14) Mortgages 0.0500(15) NAIC 02 Unaffiliated Preferred Stock 0.0100(16) NAIC 03 Unaffiliated Preferred Stock 0.0200(17) NAIC 04 Unaffiliated Preferred Stock 0.0450(18) NAIC 05 Unaffiliated Preferred Stock 0.1000### NAIC 02 Hybrid Securities 0.0100### NAIC 03 Hybrid Securities 0.0200### NAIC 04 Hybrid Securities 0.0450### NAIC 05 Hybrid Securities 0.1000(19) Other Long-Term Invested Assets 0.1000(20) NAIC 02 Working Capital Finance Investments 0.0125(21) Federal Guaranteed Low Income Housing Tax Credits 0.0014(22) Federal Non-Guaranteed Low Income Housing Tax Credits 0.0260(23) State Guaranteed Low Income Housing Tax Credits 0.0014(24) State Non-Guaranteed Low Income Housing Tax Credits 0.0260(25) All Other Low Income Housing Tax Credits 0.0150(26) Unaffiliated Common Stock 0.1500(27) Total of Issuer = Lines (1) through (26)

Note: Ten issuer sections and a grand total page will be available on the filing software. The grand total page is calcuated as the sum of issuers 1-10 by asset type.


(1)

XR011

Attachment D

17

CALCULATION OF TOTAL RISK-BASED CAPITAL AFTER COVARIANCE(1)

RBC AmountH0 -AFFILIATES W/RBC AND MISC. OTHER AMOUNTS

(1) Off-Balance Sheet Items XR005, Off-Balance Sheet Page, L(21)(2) Directly Owned Insurer Subject to RBC XR003, Affiliates Page, L(1)(3) Indirectly Owned Insurer Subject to RBC XR003, Affiliates Page, L(2)(4) Directly Owned Health Entity Subject to RBC XR003, Affiliates Page, L(3)(5) Indirectly Owned Health Entity Subject to RBC XR003, Affiliates Page, L(4)(6) Directly Owned Alien Insurer XR003, Affiliates Page, L(7)(7) Indirectly Owned Alien Insurers XR003, Affiliates Page, L(8)(8) Total H0 Sum L(1) through L(7)

H1 - ASSET RISK - OTHER(9) Investment Affiliates XR003, Affiliates Page, L(5)

(10) Holding Company Excess of Subsidiaries XR003, Affiliates Page, L(6)(11) Investment in Parent XR003, Affiliates Page, L(9)(12) Other Affiliates XR003, Affiliates Page, L(10)(13) Fair Value Excess Affiliate Common Stock XR003, Affiliates Page, L(11)(14) Fixed Income Assets

XR006, Off-Balance Sheet Collateral, L(27) + L(37) + L(38) + L(39) + XR007.2, Fixed Income Assets Page, L(52)

(15) Replication & Mandatory Convertible Securities XR008, Replication/MCS Page, L(9999999)(16) Unaffiliated Preferred Stock and Hybrid Securities XR006, Off-Balance Sheet Collateral, L(34) + XR009, Equity

Assets Page, L(7)(17) Unaffiliated Common Stock XR006, Off-Balance Sheet Collateral, L(35) +XR009, Equity

Assets Page, L(13)(18) Property & Equipment XR006, Off-Balance Sheet Collateral, L(36) + XR010,

Prop/Equip Assets Page, L(9)(19) Asset Concentration XR011, Grand Total Asset Concentration Page, L(27)(20) Total H1 Sum L(9) through L(19)

H2 - UNDERWRITING RISK(21) Net Underwriting Risk XR012, Underwriting Risk Page, L(21)(22) Other Underwriting Risk XR014, Underwriting Risk Page, L(25.3)

XR024

Attachment D

18

(23) Disability Income XR014, Underwriting Risk Page, L(26.3)+L(27.3)+L(28.3)+(29.3)+(30.6)+(31.3)+(32.3)

(24) Long-Term Care XR015, Underwriting Risk Page, L(41)(25) Limited Benefit Plans XR016, Underwriting Risk Page, L(42.2)+L(43.6)+L(44)(26) Premium Stabilization Reserve XR016, Underwriting Risk Page, L(45)(27) Total H2 Sum L(21) through L(26)


XR024

Attachment D

19


20

BONDS PR006 COMMENTS AT BOTTOM

(1) (2)RBC Electronic only Tables Source (See comment A) Book/Adjusted Carrying Value Factor RBC Requirement

(1)NAIC 01 - U.S. Government - Direct and Guaranteed and SVO Identified Funds (See comment C)

Tbl A C(2)+C(5)+ C(8) L(21) (See comment B)

0 0.000 0(2) NAIC Designation Category 1.A Tbl A C(10)L(1) 0 0.002 0(3) NAIC Designation Category 1.B Tbl A C(10)L(2) 0 0.004 0(4) NAIC Designation Category 1.C Tbl A C(10)L(3) 0 0.006 0(5) NAIC Designation Category 1.D Tbl A C(10)L(4) 0 0.008 0(6) NAIC Designation Category 1.E Tbl A C(10)L(5) 0 0.010 0(7) NAIC Designation Category 1.F Tbl A C(10)L(6) 0 0.013 0(8) NAIC Designation Category 1.G Tbl A C(10)L(7) 0 0.015 0(9) Total NAIC 01 Bonds Sum of Ls (2) through (8) 0 0

(10) NAIC Designation Category 2.A Tbl A C(10)L(8) 0 0.018 0(11) NAIC Designation Category 2.B Tbl A C(10)L(9) 0 0.021 0(12) NAIC Designation Category 2.C Tbl A C(10)L(10) 0 0.025 0(13) Total NAIC 02 Bonds Sum of Ls (10) through (12) 0 0(14) NAIC Designation Category 3.A Tbl A C(10)L(11) 0 0.055 0(15) NAIC Designation Category 3.B Tbl A C(10)L(12) 0 0.060 0(16) NAIC Designation Category 3.C Tbl A C(10)L(13) 0 0.066 0(17) Total NAIC 03 Bonds Sum of Ls (14) through (16) 0 0(18) NAIC Designation Category 4.A Tbl A C(10)L(14) 0 0.071 0(19) NAIC Designation Category 4.B Tbl A C(10)L(15) 0 0.077 0(20) NAIC Designation Category 4.C Tbl A C(10)L(16) 0 0.087 0(21) Total NAIC 04 Bonds Sum of Ls (18) through (20) 0 0(22) NAIC Designation Category 5.A Tbl A C(10)L(17) 0 0.098 0(23) NAIC Designation Category 5.B Tbl A C(10)L(18) 0 0.109 0(24) NAIC Designation Category 5.C Tbl A C(10)L(19) 0 0.120 0(25) Total NAIC 05 Bonds Sum of Ls (22) through (24) 0 0(26) Total NAIC 06 Bonds Tbl A C(10)L(20) 0 0.300 0(27) Subtotal - Bonds Subject to Bond Size Factor L(9)+L(13)+L(17)+L(21)+L(25)+

L(26) 0 0(28) Number of Issuers 0(29) Bond Size Factor 6.800(30) Bond Size Factor RBC=C(2)L(27) x C(2)L(29) 0(31) Total Bonds RBC=L(1)+L(27)+(30) 0 0

Denotes items that must be vendor linked. Denotes items that must be manually entered on the filing software.

COMMENTS

PR006 A. Column title should specifically reference RBC Electronic Tables. "Only" is really not needed.

B. The reference refers to incorrect Table A column numbers. Current reference only includes U.S. Govs. Correct column numbers would be (2), (3), (4), (5), (7) and (8).In addition, the line description for Line (1) says "NAIC 01…." The Table A reference to Line (1) would include only those US Govs and/or SVO Identified Bond Funds that have a NAIC Designation Category of 1.A. Is it possible that US Govs and/orSVO Identified Bond Funds would have Designation Categories of 1.B, 1.C, 1.D, 1.E, 1.F or 1.G? See also comment D for Table A.If US Govs and Bond Funds can have categories other than 1.A, then the reference to Table A, Line (1) is incorrect.

C. The PR006 line (1) description only references "SVO Identified Funds," as do Table A, columns (6) and (9). Table A, column (3) references"SVO Identified Bond Funds." The referenced line number (5999999) in all three Table A columns is for "SVO Identified Bonds Funds." Is the intent only to include the Bond Funds? (There are two types of SVO Identified Funds; Bond Funds and ETFs.) If so, all descriptions should be the same. See also Comment F below.

PR006

Attachment D

21

Tbl A - Schedule D Part 1: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

RBC Bond Categories

Total Bonds (Sch D Pt1 C11) (See comment E)


Guaranteed(Sch D Pt1 C11

L0599999) (See comment D)

SVO Identified Bond Mutual

Funds(Sch D Pt1 C11

L5999999) (See comment D )

Total Bonds (Sch DA Pt1

C7) (See comment

E )


Guaranteed(Sch DA Pt1 C7

L0599999) (See Comment

D)

SVO Identified Funds

(Sch DA Pt1 C7 L5999999)

(See comment D)

Total Bonds (Sch E Pt2 C7)

(See Comment E)


Guaranteed(Sch E Pt2 C7

L0599999) (See Comment

D)

SVO Identified

Funds(Sch E Pt2 C7

L5999999) (See comment

D)

BondsC(1)+C(4)+C(7)-C(2)-C(3)-

C(5)-C(6)-C(8)-C(9)

(1) NAIC Designation Category 1.A 0 0 0 0 0 0 0 0 0 0(2) NAIC Designation Category 1.B 0 xxx xxx 0 xxx xxx 0 xxx xxx 0(3) NAIC Designation Category 1.C 0 xxx xxx 0 xxx xxx 0 xxx xxx 0(4) NAIC Designation Category 1.D 0 xxx xxx 0 xxx xxx 0 xxx xxx 0(5) NAIC Designation Category 1.E 0 xxx xxx 0 xxx xxx 0 xxx xxx 0(6) NAIC Designation Category 1.F 0 xxx xxx 0 xxx xxx 0 xxx xxx 0(7) NAIC Designation Category 1.G 0 xxx xxx 0 xxx xxx 0 xxx xxx 0(8) NAIC Designation Category 2.A 0 xxx xxx 0 xxx xxx 0 xxx xxx 0(9) NAIC Designation Category 2.B 0 xxx xxx 0 xxx xxx 0 xxx xxx 0

(10) NAIC Designation Category 2.C 0 xxx xxx 0 xxx xxx 0 xxx xxx 0(11) NAIC Designation Category 3.A 0 xxx xxx 0 xxx xxx 0 xxx xxx 0(12) NAIC Designation Category 3.B 0 xxx xxx 0 xxx xxx 0 xxx xxx 0(13) NAIC Designation Category 3.C 0 xxx xxx 0 xxx xxx 0 xxx xxx 0(14) NAIC Designation Category 4.A 0 xxx xxx 0 xxx xxx 0 xxx xxx 0(15) NAIC Designation Category 4.B 0 xxx xxx 0 xxx xxx 0 xxx xxx 0(16) NAIC Designation Category 4.C 0 xxx xxx 0 xxx xxx 0 xxx xxx 0(17) NAIC Designation Category 5.A 0 xxx xxx 0 xxx xxx 0 xxx xxx 0(18) NAIC Designation Category 5.B 0 xxx xxx 0 xxx xxx 0 xxx xxx 0(19) NAIC Designation Category 5.C 0 xxx xxx 0 xxx xxx 0 xxx xxx 0(20) NAIC 06 0 xxx xxx 0 xxx xxx 0 xxx xxx 0(21) Total 0 0 0 0 0 0 0 0 0 0

Tbl B - Crosscheck: (2) (3)Annual Statement Schedule D Part

1A Section 1

RBC PR006 Column (1)

(See comment G) RBC Report Difference(1) NAIC 01 Line 11.1 +10 (9) (see commen 0 0(2) NAIC 02 Line 11.2 L(14) 0 0(3) NAIC 03 Line 11.3 L(18) 0 0(4) NAIC 04 Line 11.4 L(22) 0 0(5) NAIC 05 Line 11.5 L(26) 0 0(6) NAIC 06 Line 11.6 L(27) 0 0

Table AD. By placing XXXs in columns (2), (5), (8), it appears the assumption is being made that all U.S. Govs will have an NAIC Designation Category of 1.A.

Is that a valid assumption? Will U.S. Govs not have designation categories of 1.B, 1.C, 1D, 1E, 1F or 1G?The same is true in the SVO Identified Funds columns (3), (6), (9). Can SVO-Identified Bond Funds have categories of 1.B, 1.C, 1D, 1E, 1F or 1G?Can the Bond Funds have designatin categories of other than "1?" For example, 2.A, 2.B, 2C?The HRBC formula does not XXX out the SVO Identified Bonds Funds column. Shouldn't treatment be consistant between formulas?

E. For Table A to be effective, a statement line reference should be included for all columns. Line references are missing for columns (1), (4), (7)

Table BF. The references to Lines 11.1, 11.2, 11.3, 11.4, 11.5 and 11.6 of Sch D - Part 1A includes all SVO Identified Funds as reported in Section 9 of D1A.

Schedule D - Part 1A includes both Bond Funds and ETFs in these lines. The PRBC formula appears to include only Bond Funds, not ETFs. Therefore the crosschecks between Schedule D - Part 1A, Section 1 and PR006 will not work. See Table A comment D, for further comments that could affect the crosschecks.

G. The reference to the line numbers on PR006 do not use the correct RBC reference format. Corrections were done above.

H. PRBC reference should be Line (1) + Line (9). Corrected above.

0

(1)

00

Annual Statement00

Schedule D, Part 1 - Long Term Bonds (See comment D) Schedule DA, Part 1 - Short Term Bonds Schedule E, Part 2 - Cash Eqivalents

0

Attachment D

22

COMMENTS AT BOTTOM

UNAFFILIATED PREFERRED AND COMMON STOCK PR007

(1) (2)

Unaffiliated Preferred Stock Annual Statement SourceBook/Adjusted Carrying Value Factor RBC Requirement

(1) NAIC 01 Preferred Stock Sch D Pt 2 Sn 1 0 0.003 0(2) NAIC 02 Preferred Stock Sch D Pt 2 Sn 1 0 0.010 0(3) NAIC 03 Preferred Stock Sch D Pt 2 Sn 1 0 0.020 0(4) NAIC 04 Preferred Stock Sch D Pt 2 Sn 1 0 0.045 0(5) NAIC 05 Preferred Stock Sch D Pt 2 Sn 1 0 0.100 0(6) NAIC 06 Preferred Stock Sch D Pt 2 Sn 1 0 0.300 0(7) SUBTOTAL - UNAFFILIATED PREFERRED STOCK Sum of Ls (1) through (6) 0 0

(should equal P2 L2.1 C3 less Sch D-Sum C1 L18)

Hybrid Securities(8) NAIC 01 Hybrid Securities Sch D Pt 1A Sn 1 C(7) L (7.1) 0 0.003 0(9) NAIC 02 Hybrid Securities Sch D Pt 1A Sn 1 C(7) L (7.2) 0 0.010 0(10) NAIC 03 Hybrid Securities Sch D Pt 1A Sn 1 C(7) L (7.3) 0 0.020 0(11) NAIC 04 Hybrid Securities Sch D Pt 1A Sn 1 C(7) L (7.4) 0 0.045 0(12) NAIC 05 Hybrid Securities Sch D Pt 1A Sn 1 C(7) L (7.5) 0 0.100 0(13) NAIC 06 Hybrid Securities Sch D Pt 1A Sn 1 C(7) L (7.6) 0 0.300 0(14) SUBTOTAL - HYBRID SECURITIES Sum of Ls (8) through (13) 0 0

(15) Total Unaffiliated Preferred Stock and Hybrid Securities Line (7) + Line (14) 0 0

Unaffiliated Common Stock(8) Total Common Stock Sch D - Summary C1 L25 0(9) Affiliated Common Stock Sch D - Summary C1 L24 0(10) Non-Admitted Unaffilated Common Stock P2 C2 L2.2 - Sch D Pt6 Sn1 C10 L1899999 0(11) Admitted Unaffiliated Common Stock L(16) - L(17) - L(18) (See comment A) 0 0.150 0(12) Fair Value Excess Affiliated Common Stock PR003 C(14) L(9999999) 0(13) Total Unaffiliated Common Stock L(11) + L(12) 0 0


COMMENTS

A. Line (11) reference calculation is incorrect. Should be L(8) - (9) - (10)

PR007

Attachment D

23

ASSET CONCENTRATION PR011

(1) (2) (3)

ISSUER #1j y g Value Factor Additional RBC

(1) NAIC Designation Category 2.A Bonds 0 0.0180 0(2) NAIC Designation Category 2.B Bonds 0 0.0210 0(3) NAIC Designation Category 2.C Bonds 0 0.0250 0(4) NAIC Designation Category 3.A Bonds 0 0.0550 0(5) NAIC Designation Category 3.B Bonds 0 0.0600 0(6) NAIC Designation Category 3.C Bonds 0 0.0660 0(7) NAIC Designation Category 4.A Bonds 0 0.0710 0(8) NAIC Designation Category 4.B Bonds 0 0.0770 0(9) NAIC Designation Category 4.C Bonds 0 0.0870 0(10) NAIC Designation Category 5.A Bonds 0 0.0980 0(11) NAIC Designation Category 5.B Bonds 0 0.1090 0(12) NAIC Designation Category 5.C Bonds 0 0.1200 0(13) Collateral Loans 0 0.0500 0(14) Mortgage Loans 0 0.0500 0(15) NAIC 02 Working Capital Finance Investments 0 0.0125 0(16) Federal Guaranteed Low Income Housing Tax Credits 0 0.0014 0(17) Federal Non-Guaranteed Low Income Housing Tax Credits 0 0.0260 0(18) State Guaranteed Low Income Housing Tax Credits 0 0.0014 0(19) State Non-Guaranteed Low Income Housing Tax Credits 0 0.0260 0(20) All Other Low Income Housing Tax Credits 0 0.1500 0(21) SUBTOTAL - FIXED INCOME 0 0

(22) NAIC 02 Unaffiliated Preferred Stock 0 0.0100 0(23) NAIC 03 Unaffiliated Preferred Stock 0 0.0200 0(24) NAIC 04 Unaffiliated Preferred Stock 0 0.0450 0(25) NAIC 05 Unaffiliated Preferred Stock 0 0.1000 0

NAIC 02 Hybrid Securities 0 0.0100 0NAIC 03 Hybrid Securities 0 0.0200 0NAIC 04 Hybrid Securities 0 0.0450 0NAIC 05 Hybrid Securities 0 0.1000 0

(26) Property Held For Production of Income or For Sale Excluding Home Office 0 0.1000 0(27) Property Held For Production of Income or For Sale Encumbrances Excluding Home Office 0 0.1000 0(28) Schedule BA Assets 0 0.1000 0(29) Receivable for Securities 0 0.0230 0(30) Aggregate Write-Ins for Invested Assets 0 0.0500 0(31) Derivatives 0 0.0500 0(32) Unaffiliated Common Stock 0 0.1500 0(33) SUBTOTAL - EQUITY 0 0

(34) TOTAL - ISSUER #1 (L21+L33) 0 0

NOTE: Ten issuer sections and a grand total page will be available on the filing software. The grand total page is calcuated as the sum of issuers 1-10 by asset type.


PR011

Attachment D

24

(1) (2) (3) (4)






(1) NAIC 01 - U.S. Government - Direct and Guaranteed and SVO Identified Funds(See comment C for page PR006) Company Records 0 0 0 0.000 0

(2) NAIC Designation Category 1.A Company Records 0 0 0 0.002 0(3) NAIC Designation Category 1.B Company Records 0 0 0 0.004 0(4) NAIC Designation Category 1.C Company Records 0 0 0 0.006 0(5) NAIC Designation Category 1.D Company Records 0 0 0 0.008 0(6) NAIC Designation Category 1.E Company Records 0 0 0 0.010 0(7) NAIC Designation Category 1.F Company Records 0 0 0 0.013 0(8) NAIC Designation Category 1.G Company Records 0 0 0 0.015 0(9) Total NAIC 01 Bonds Sum of Ls (1) through (8) 0 0 0 0

(10) NAIC Designation Category 2.A Company Records 0 0 0 0.018 0(11) NAIC Designation Category 2.B Company Records 0 0 0 0.021 0(12) NAIC Designation Category 2.C Company Records 0 0 0 0.025 0(13) Total NAIC 02 Bonds Sum of Ls (10) through (12) 0 0 0 0(14) NAIC Designation Category 3.A Company Records 0 0 0 0.055 0(15) NAIC Designation Category 3.B Company Records 0 0 0 0.060 0(16) NAIC Designation Category 3.C Company Records 0 0 0 0.066 0(17) Total NAIC 03 Bonds Sum of Ls (14) through (16) 0 0 0 0(18) NAIC Designation Category 4.A Company Records 0 0 0 0.071 0(19) NAIC Designation Category 4.B Company Records 0 0 0 0.077 0(20) NAIC Designation Category 4.C Company Records 0 0 0 0.087 0(21) Total NAIC 04 Bonds Sum of Ls (18) through (20) 0 0 0 0(22) NAIC Designation Category 5.A Company Records 0 0 0 0.098 0(23) NAIC Designation Category 5.B Company Records 0 0 0 0.109 0(24) NAIC Designation Category 5.C Company Records 0 0 0 0.120 0(25) Total NAIC 05 Bonds Sum of Ls (22) through (24) 0 0 0 0(26) Total NAIC 06 Bonds Company Records 0 0 0 0.300 0(27) Total Bonds L(9)+L(13)+L(17)+L(21)+L(25)+L(26) 0 0 0 0


(28) NAIC 01 Unaffiliated Preferred Stock Company Records 0 0.003 0(29) NAIC 02 Unaffiliated Preferred Stock Company Records 0 0.010 0(30) NAIC 03 Unaffiliated Preferred Stock Company Records 0 0.020 0(31) NAIC 04 Unaffiliated Preferred Stock Company Records 0 0.045 0(32) NAIC 05 Unaffiliated Preferred Stock Company Records 0 0.100 0(33) NAIC 06 Unaffiliated Preferred Stock Company Records 0 0.300 0(34) Total Unaffiliated Preferred Stock Sum of Ls (28) through (33) 0 0 0 0

(35) Unaffiliated Common Stock Company Records 0 0.150 0

(36) Real Estate and Schedule BA - Other Invested Assets Company Records 0 0.200 0

(37) Other Invested Assets Company Records 0 0.200 0

(38) Mortgage Loans on Real Estate Company Records 0 0.050 0

(39) Cash, Cash Equivalents, non-government money market fund and Short-Term Investments Company Records 0 0.003 0(Not reported as Bonds above)

(40) Total L(27)+L(34)+L(35)+L(36)+L(37)+L(38)+L(39) 0 0 0 0


OFF-BALANCE SHEET COLLATERAL AND SCHEDULE DL, PART 1 ASSETS PR015

PR015

Attachment D

25

Calculation of Total Risk-Based Capital After Covariance PR030 R0-R1(1)

R0 - Asset Risk - Subsidiary Insurance Companies PRBC O&I Reference RBC Amount(1) Affiliated US P&C Insurers - Directly Owned PR004 L(1)C(4) 0(2) Affiliated US P&C Insurers - Indirectly Owned PR004L(4)C(4) 0(3) Affiliated US Life Insurers - Directly Owned PR004 L(2)C(4) 0(4) Affiliated US Life Insurers - Indirectly Owned PR004 L(5)C(4) 0(5) Affiliated US Health Insurer - Directly Owned PR004 L(3)C(4) 0(6) Affiliated US Health Insurer - Indirectly Owned PR004 L(6)C(4) 0(7) Affiliated Alien Insurers - Directly Owned PR004 L(8)C(4) 0(8) Affiliated Alien Insurers - Indirectly Owned PR004 L(9)C(4) 0(9) Misc Off-Balance Sheet - Non-Controlled Assets PR014 L(15) C(3) 0(10) Misc Off-Balance Sheet - Guarantees for Affiliates PR014 L(16) C(3) 0(11) Misc Off-Balance Sheet - Contingent Liabilities PR014 L(17) C(3) 0(12) Misc Off-Balance Sheet - SSAP No.101 Par. 11A DTA PR014 L(19) C(3) 0(13) Misc Off-Balance Sheet - SSAP No.101 Par. 11B DTA PR014 L(20) C(3) 0

(14) Total R0 L(1)+L(2)+L(3)+L(4)+L(5)+L(6)+L(7)+L(8)+L(9)+L(10)+L(11)+L(12)+L(13) 0

R1 - Asset Risk - Fixed Income(15) NAIC 01 U.S. Government Agency Bonds PR006 L(2)C(2) 0(15) Bonds Subject to Size Factor PR006 L(27)C(2)+PR015 L(27)C(4) 0(16) Bond Size Factor RBC PR006 L(30)C(2) 0(17) Off-balance Sheet Collateral & Sch DL., PT1 - Total Bonds PR015 L(27)C(4) 0(18) Off-balance Sheet Collateral & Sch DL., PT1 - Cash, Cash Equi, non-govt MMF & S.T. Invest and Mort Loans on Real Est. PR015 L(38) + L(39) C(2) 0(19) Misc Assets - Collateral Loans PR008 L(10)+L(13)+L(14)+L(15)+L(16)+L(17)+L(20)+L(21)C(2) 0(20) Misc Assets - Cash PR009 L(13)C(2) 0(21) Misc Assets - Cash Equivalents PR009 L(3)C(2) 0(22) Misc Assets - Other Short-Term Investments PR009 L(7)C(2) 0(23) Replication -Synthetic Asset: One Half PR009 L(10)C(2)(24) Asset Concentration RBC - Fixed Income PR010 L(9999999)C(7) (25) Asset Concentration RBC - Fixed Income PR011 L(21)C(3) Grand Total Page 0

L(15)+L(16)+L(17)+L(18)+L(19)+L(20)+L(21)+L(22)+L(23)+L(24)(26) Total R1 L(25)+L(26) 0

PR031

Attachment D

26


R2 - Asset Risk - Equity PRBC O&I Reference RBC Amount(27) Common - Affiliate Investment Subsidiary PR004 L(7)C(2) 0(28) Common - Affiliate Hold. Company. in excess of Ins. Subs. PR004 L(10)C(2) 0(29) Common - Investment in Parent PR004 L(11)C(2) 0(30) Common - Aff'd US P&C Not Subj to RBC PR004 L(12)C(2) 0(31) Common - Affil US Life Not Subj to RBC PR004 L(13)C(2) 0(32) Common - Affil US Health Insurer Not Subj to RBC PR004L(14)C(2) 0(33) Common - Aff'd Non-insurer PR004 L(15)C(2) 0(34) Preferred - Aff'd Invest Sub PR004 L(7)C(3) 0(35) Preferred - Aff'd Hold. Co. in excess of Ins. Subs. PR004 L(10)C(3) 0(36) Preferred - Investment in Parent PR004 L(11)C(3) 0(37) Preferred - Affil US P&C Not Subj to RBC PR004 L(12)C(3) 0(38) Preferred - Affil US Life Not Subj to RBC PR004 L(13)C(3) 0(39) Preferred - Affil US Health Insurer Not Subj to RBC PR004 L(14)C(3) 0(40) Preferred - Affil Non-insurer PR004 L(15)C(3) 0(41) Unaffiliated Preferred Stock and Hybrid Securities PR007 L(7)C(2)+PR015 L(34)C(4) 0(42) Unaffiliated Common Stock PR007 L(14)C(2)+PR015 L(35)C(4) 0(43) Other Long -Term Assets - Real Estate PR008 L(7)C(2) 0(44) Other Long -Term Assets - Schedule BA Assets PR008 L(19)C(2)+PR015 L(36)+L(37)C(4) 0(45) Misc Assets - Receivable for Securities PR009 L(1)C(2) 0(46) Misc Assets - Aggregate Write-ins for Invested Assets PR009 L(2)C(2) 0(47) Misc Assets - Derivatives PR009 L(15)C(2) 0(48) Replication - Synthetic Asset: One Half PR010 L(9999999)C(7) 0(49) Asset Concentration RBC - Equity PR011 L(33)C(3) Grand Total Page 0

L(27)+L(28)+L(29)+L(30)+L(31)+L(32)+L(33)

+L(34)+L(35)+L(36)+L(37)+L(38)+L(39)+L(40)+L(41)+(42)+(43)+(44)(50) Total R2 +L(45)+(46)+(47)+(48)+L(49)+L(50)+L(51)+L(52)+L(53)+L(54)+L(55) 0

R3 - Asset Risk - Credit(51) Other Credit RBC PR012 L(8))-L(1)-L(2)C(2) 0(52) One half of Rein Recoverables 0.5 x (PR012 L(1)+L(2)C(2)) 0(53) Other half of Rein Recoverables If R4 L(58)>(R3 L(52) + R3 L(53)), 0, otherwise, R3 L(53) 0(54) Health Credit Risk PR013 L(12)C(2) 0

(55) Total R3 L(52) + L(53) + L(54) + L(55) L(51) + L(52) + L(53) + L(54) 0

PR032

Attachment D

27


28

BONDS(1) (2)

Bond Book / Adjusted RBCDesignation Category Annual Statement Source Carrying Value Factor Requirement

Long Term Bonds(1) Exempt Obligations AVR Default Component Column 1 Line 1 (See AVR Comment A) X 0.0000 =

(2.1) NAIC Designation Category 1.A AVR Default Component Column 1 Line 2.1 X 0.0039 =- Schedule D Part 1A Section 1 Column 7 Line 7.1

(2.2) NAIC Designation Category 1.B AVR Default Component Column 1 Line 2.2 X 0.0039 =(2.3) NAIC Designation Category 1.C AVR Default Component Column 1 Line 2.3 X 0.0039 =(2.4) NAIC Designation Category 1.D AVR Default Component Column 1 Line 2.4 X 0.0039 =(2.5) NAIC Designation Category 1.E AVR Default Component Column 1 Line 2.5 X 0.0039 =(2.6) NAIC Designation Category 1.F AVR Default Component Column 1 Line 2.6 X 0.0039 =(2.7) NAIC Designation Category 1.G AVR Default Component Column 1 Line 2.7 X 0.0039 =

(2.8) Subtotal NAIC 1 Sum of Lines (2.1) through (2.7)


(3.2) NAIC Designation Category 2.B AVR Default Component Column 1 Line 3.2 X 0.0126 =(3.3) NAIC Designation Category 2.C AVR Default Component Column 1 Line 3.3 X 0.0126 =











(7) NAIC 6 AVR Default Component Column 1 Line 7 X 0.3000 =- Schedule D Part 1A Section 1 Column 6 Line 7.6

(8) Total Long-Term Bonds Sum of Lines (1) + (2.8) + (3.4) + (4.4) + (5.4) + (6.4) + (7) (See comments A & B below)(Column (1) should equal Page 2 Column 3 Line 1 + Schedule DL Part 1 Column 6 Line 7099999) - Schedule D Part 1A Section 1 Column 6 line 7.7)

LR002

Attachment D

29

Short Term Bonds(9) Exempt Obligations AVR Default Component Column 1 Line 18 X 0.0000 =

(10.1) NAIC Designation Category 1.A AVR Default Component Column 1 Line 19.1 X 0.0039 =(10.2) NAIC Designation Category 1.B AVR Default Component Column 1 Line 19.2 X 0.0039 =(10.3) NAIC Designation Category 1.C AVR Default Component Column 1 Line 19.3 X 0.0039 =(10.4) NAIC Designation Category 1.D AVR Default Component Column 1 Line 19.4 X 0.0039 =(10.5) NAIC Designation Category 1.E AVR Default Component Column 1 Line 19.5 X 0.0039 =(10.6) NAIC Designation Category 1.F AVR Default Component Column 1 Line 19.6 X 0.0039 =(10.7) NAIC Designation Category 1.G AVR Default Component Column 1 Line 19.7 X 0.0039 =


(11.1) NAIC Designation Category 2.A AVR Default Component Column 1 Line 20.1 X 0.0126 =(11.2) NAIC Designation Category 2.B AVR Default Component Column 1 Line 20.2 X 0.0126 =(11.3) NAIC Designation Category 2.C AVR Default Component Column 1 Line 20.3 X 0.0126 =








(15) NAIC 6 AVR Default Component Column 1 Line 24 X 0.3000 =

(16) Total Short-Term Bonds Sum of Lines (9) + (10.8) + (11.4) + (12.4) + (13.4) + (14.4) + (15) (See comment C below)(Column (1) should equal Schedule DA Part 1 Column 7 Line 8399999 + Schedule DL Part 1 Column 6 Line 8999999 + LR012 Miscellaneous Assets Column (1) Line (2.2) )

(17) Total Long-Term and Short-Term Bonds Line (8) + (16)(pre-MODCO/Funds Withheld)

(18) Credit for Hedging LR014 Hedged Asset Bond ScheduleColumn 13 Line 0399999

(19) Reduction in RBC for MODCO/Funds LR045 Modco or Funds Withheld Reinsurance Withheld Reinsurance Ceded Agreements Ceded - Bonds C-1o Column (4) Line (9999999)

(20) Increase in RBC for MODCO/Funds LR046 Modco or Funds Withheld Reinsurance Withheld Reinsurance Assumed Agreements Assumed - Bonds C-1o Column (4) Line (9999999)

(21) Total Long-Term and Short-Term Bonds Lines (17) - (18) - (19) + (20)(including MODCO/FundsWithheld and Credit for Hedging adjustments.)

(22) Non-exempt Asset NAIC 1 U.S. Schedule D Part 1 NAIC 1 Bonds and Schedule DA X 0.0039 =Government Agency Bonds Part 1 NAIC 1 Bonds, in part†

(23) Bonds Subject to Size Factor Line (21) - Line (1) - Line (9) - Line (22)(24) Number of Issuers Company Records(25) Size Factor for Bonds(26) Bonds Subject to Size Factor after the Size Line (23) x Line (25)

Factor is Applied

(27) Total Bonds Line (22) + Line (26)

† Only investments in NAIC 1 U.S. Government agency bonds previously reported in Lines (2.8) and (10.8), net of those included on Line (19), plus the portion of Line (20) attributable to ceding companies' Lines (2.8) and (10.8) should be included on Line (22). No other NAIC 1 bonds should be included on this line. Exempt U.S. Government bonds shown on Lines (1) and (9) should not be included on Line (22). Refer to the bond section of the risk-based capital instructions for more clarification.

Denotes items that must be manually entered on the filing software. 0

LR002

Attachment D

30

COMMENTS

A The AVR Default Component for Long-Term Bonds has a line 9 reporting "Total Unrated Multi-Class Securities Acquired by Conversion". That line is not reported in any of the LRBC bond Lines (1) through (8). Where should it be included?

B. Line 7 needs to be added to the Line 8 calculation shown.

C. Line 15 needs to be added to the Line 16 calculation shown.

LR002

Attachment D

31

UNAFFILIATED PREFERRED AND COMMON STOCK(1) (2) (3) (4) (5)

Less AffiliatedBook / Adjusted Preferred Stock RBC

Annual Statement Source Carrying Value Without AVR RBC Subtotal Factor RequirementUnaffiliated Preferred Stock

(1) Preferred Stock Asset NAIC 1 AVR Default Component Column 1 Line 10 X 0.0039 =(2) Preferred Stock Asset NAIC 2 AVR Default Component Column 1 Line 11 X 0.0126 =(3) Preferred Stock Asset NAIC 3 AVR Default Component Column 1 Line 12 X 0.0446 =(4) Preferred Stock Asset NAIC 4 AVR Default Component Column 1 Line 13 X 0.0970 =(5) Preferred Stock Asset NAIC 5 AVR Default Component Column 1 Line 14 X 0.2231 =(6) Preferred Stock Asset NAIC 6 AVR Default Component Column 1 Line 15 X 0.300 =(7) Total Unaffiliated Preferred Stock Sum of Lines (1) through (6)

(pre-MODCO/Funds Withheld)(Column (1) should equal Page 2 Column 3 Line 2.1 less Asset Valuation Reserve Default Component Column 1 Line 16.)(Column (2) should equal Schedule D Summary Column 1 Line 18 less Asset Valuation Reserve Default Component Column 1 Line 16.)Hybrid Securities

(8) Hybrid Securities Asset NAIC 1 Schedule D Part 1A Section 1 Column 7 Line 7.1 X 0.0039 =(9) Hybrid Securities Asset NAIC 2 Schedule D Part 1A Section 1 Column 7 Line 7.2 X 0.0126 =

(10) Hybrid Securities Asset NAIC 3 Schedule D Part 1A Section 1 Column 7 Line 7.3 X 0.0446 =(11) Hybrid Securities Asset NAIC 4 Schedule D Part 1A Section 1 Column 7 Line 7.4 X 0.0970 =(12) Hybrid Securities Asset NAIC 5 Schedule D Part 1A Section 1 Column 7 Line 7.5 X 0.2231 =(13) Hybrid Securities Asset NAIC 6 Schedule D Part 1A Section 1 Column 7 Line 7.6 X 0.300 =(14) Total Hybrid Securities Sum of Lines (8) through (13)

(pre-MODCO/Funds Withheld)(15) Total Unaffiliated Preferred Stock Including Hybrids Line (7) + Line (14)

(pre-MODCO/Funds Withheld)(8) Reduction in RBC for MODCO/Funds Withheld

Reinsurance Ceded Agreements Company Records (enter a pre-tax amount)(9) Increase in RBC for MODCO/Funds Withheld

Reinsurance Assumed Agreements Company Records (enter a pre-tax amount)(10) Total Unaffiliated Preferred Stock and Hybrid Securities Lines (7) - (8) + (9)

(including MODCO/Funds Withheld.)Unaffiliated Common Stock

(11) Total Common Stock Schedule D Summary Column 1 Line 25(12) Less Affiliated Common Stock Schedule D Summary Column 1 Line 24(13) Less Non-Admitted Unaffiliated Common Stock Company Records

included in Line (11)(14) Less Federal Home Loan Bank Common Stock AVR Equity Component Column 1 Line 3 X 0.011 =(15) Less Unaffiliated Private Common Stock AVR Equity Component Column 1 Line 2 X 0.300 =(16) Net Other Unaffiliated Public Common Stock Lines (11) - (12) - (13) - (14) - (15) X 0.45 † =(17) Total Admitted Unaffiliated Common Stock Lines (14) + (15) + (16)

(pre-MODCO/Funds Withheld)(Column 1 should equal Schedule D Summary by Country Column 1 Line 25 less Line 24 less Line (21))

(18) Credit for Hedging LR015 Hedged Asset Common Stock ScheduleColumn 10 Line 0299999

(19) Reduction in RBC for MODCO/Funds Withheld Reinsurance Ceded Agreements Company Records (enter a pre-tax amount)

(20) Increase in RBC for MODCO/Funds Withheld Reinsurance Assumed Agreements Company Records (enter a pre-tax amount)

(21) Total Admitted Unaffiliated Common Stock Lines (17) - (18) - (19) + (20)(including MODCO/Funds Withheld and Credit for Hedging.)

† The factor for publicly traded common stock should equal 30 percent adjusted up or down by the weighted average beta for the publicly traded common stock portfolio subject to a minimum of 22.5 percent and a maximum of 45 percent in the same manner that the similar 13 percent factor for publicly traded common stock in the Asset Valuation Reserve (AVR) calculation is adjusted up or down. The rules for calculating the beta adjustment are set forth in the AVR section of the annual statement instructions.

LR005

Attachment D

32

ASSET CONCENTRATION FACTOR (1) (2) (3) (4) (5) (6)

Book / Adjusted Additional Adjustment/ RBCAsset Type Carrying Value Factor RBC Subsidiary RBC RequirementIssuer Name:

(1.1) Bond NAIC Designation Category 2.A X 0.0126 =(1.2) Bond NAIC Designation Category 2.B X 0.0126 =(1.3) Bond NAIC Designation Category 2.C X 0.0126 =(2.1) Bond NAIC Designation Category 3.A X 0.0446 =(2.2) Bond NAIC Designation Category 3.B X 0.0446 =(2.3) Bond NAIC Designation Category 3.C X 0.0446 =(3.1) Bond NAIC Designation Category 4.A X 0.0970 =(3.2) Bond NAIC Designation Category 4.B X 0.0970 =(3.3) Bond NAIC Designation Category 4.C X 0.0970 =(4.1) Bond NAIC Designation Category 5.A X 0.2231 =(4.2) Bond NAIC Designation Category 5.B X 0.2231 =(4.3) Bond NAIC Designation Category 5.C X 0.2231 =(5) Bond NAIC 6 X 0.1500 =

(6.1) Bond NAIC Designation Category 1.A † X 0.0039 =(6.2) Bond NAIC Designation Category 1.B † X 0.0039 =(6.3) Bond NAIC Designation Category 1.C † X 0.0039 =(6.4) Bond NAIC Designation Category 1.D † X 0.0039 =(6.5) Bond NAIC Designation Category 1.E † X 0.0039 =(6.6) Bond NAIC Designation Category 1.F † X 0.0039 =(6.7) Bond NAIC Designation Category 1.G † X 0.0039 =(7) Unaffiliated Preferred Stock NAIC 2 X 0.0126 =(8) Unaffiliated Preferred Stock NAIC 3 X 0.0446 =(9) Unaffiliated Preferred Stock NAIC 4 X 0.0970 =

(10) Unaffiliated Preferred Stock NAIC 5 X 0.2231 =(11) Unaffiliated Preferred Stock NAIC 6 X 0.1500 =(12) Unaffiliated Preferred Stock NAIC 1 † X 0.0039 =(13) Hybrid Securities NAIC 2 X 0.0126 =(14) Hybrid Securities NAIC 3 X 0.0446 =(15) Hybrid Securities NAIC 4 X 0.0970 =(16) Hybrid Securities NAIC 5 X 0.2231 =(17) Hybrid Securities NAIC 6 X 0.1500 =(18) Hybrid Securities NAIC 1 † X 0.0039 =(13) Collateral Loans X 0.0680 =(14) Receivable for Securities X 0.0140 =(15) Write-ins for Invested Assets X 0.0680 =(16) Premium Notes X 0.0680 =(17) Real Estate - Foreclosed(18) Real Estate - Foreclosed Encumbrances X ‡ =(19) Real Estate - Investments(20) Real Estate - Investment Encumbrances X ‡ =(21) Real Estate - Schedule BA(22) Real Estate - Schedule BA Encumbrances X ‡ =(23) Farm Mortgages - Category CM2 X 0.0175 =(24) Farm Mortgages - Category CM3 X 0.0300 =(25) Farm Mortgages - Category CM4 X 0.0500 =(26) Farm Mortgages - Category CM5 X 0.0750 =(27) Commercial Mortgages - Category CM2 X 0.0175 =(28) Commercial Mortgages - Category CM3 X 0.0300 =(29) Commercial Mortgages - Category CM4 X 0.0500 =(30) Commercial Mortgages - Category CM5 X 0.0750 =

† After the ten largest issuer exposures are chosen, any NAIC 1 bonds or preferred stocks from any of these issuers should be included. ‡ Refer to the instructions for the Asset Concentration Factor for details of this calculation.


LR010

Attachment D

33

ASSET CONCENTRATION FACTOR (CONTINUED)(2) (3) (4) (5) (6)

Book / Adjusted Additional Adjustment/ RBCAsset Type Carrying Value Factor RBC Subsidiary RBC Requirement

(31) Farm Mortgages - 90 Days Overdue(32) Farm Mortgages - 90 Days Overdue - Cumulative Writedowns X ‡ =(33) Residential Mortgages - 90 Days Overdue(34) Residential Mortgages - 90 Days Overdue - Cumulative Writedowns X ‡ =(35) Commercial Mortgages - 90 Days Overdue(36) Commercial Mortgages - 90 Days Overdue - Cumulative Writedowns X ‡ =(37) Farm Mortgages in Foreclosure(38) Farm Mortgages in Foreclosure - Cumulative Writedowns X ‡ =(39) Residential Mortgages in Foreclosure(40) Residential Mortgages in Foreclosure - Cumulative Writedowns X ‡ =(41) Commercial Mortgages in Foreclosure(42) Commercial Mortgages in Foreclosure - Cumulative Writedowns X ‡ =(43) Unaffiliated Mortgages with Covenants X ‡ =(44) Unaffiliated Mortgages - Defeased with Government Securities X 0.0090 =(45) Unaffiliated Mortgages - Primarily Senior X 0.0175 =(46) Unaffiliated Mortgages - All Other X 0.0300 =(47) Affiliated Mortgages - Category CM2 X 0.0175 =(48) Affiliated Mortgages - Category CM3 X 0.0300 =(49) Affiliated Mortgages - Category CM4 X 0.0500 =(50) Affiliated Mortgages - Category CM5 X 0.0750 =(51) Schedule BA Mortgages 90 Days Overdue(52) Schedule BA Mortgages 90 Days Overdue - Cumulative Writedowns X ‡ =(53) Schedule BA Mortgages in Process of Foreclosure(54) Schedule BA Mortgages Foreclosed - Cumulative Writedowns X ‡ =(55) Federal Guaranteed Low Income Housing Tax Credits X 0.0014 =(56) Federal Non-Guaranteed Low Income Housing Tax Credits X 0.0260 =(57) State Guaranteed Low Income Housing Tax Credits X 0.0014 =(58) State Non-Guaranteed Low Income Housing Tax Credits X 0.0260 =(59) All Other Low Income Housing Tax Credits X 0.1500 =(60) NAIC 02 Working Capital Finance Notes X 0.0163 =(61) Other Schedule BA Assets X 0.1500 =

(62) Total of Issuer = Sum of Lines (1) through (61)

NOTE: Ten issuer sections and a grand total page will be available on the filing software. The grand total page is calculated as the sum of issuers 1-10 by asset type.

‡ Refer to the instructions for the Asset Concentration Factor for details of this calculation.


LR010

Attachment D

34

HEDGED ASSET BOND SCHEDULE

As of:

Type of (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)Hedged

Asset

Description Notional Amount

Relationship Type of the

Hedging Instrument and Hedged Asset

Maturity Date Description CUSIP

Book / Adjusted Carrying Value

Overlap with Insurer's Bond

PortfolioMaturity

Date

NAIC Designation

CategoryRBC

FactorGross RBC

Charge

RBC Credit for Hedging

InstrumentsNet RBC Charge

Bonds † † † † † † ‡ † † § * £ **(0100001)(0100002)(0100003)(0100004)(0100005)(0100006)(0100007)(0100008)(0100009)(0100010)(0100011)(0100012)(0100013)(0100014)(0100015)(0100016)(0100017)(0100018)(0100019)(0100020)(0100021)(0100022)(0100023)(0100024)(0100025)(0100026)(0100027)(0100028)(0100029)(0100030)

(0199999) Subtotal - NAIC 1 Through 5 Bonds xxxxx xxxxx Subtotal xxxxx xxxxx xxxxx xxxxx(0299999) Subtotal - NAIC 6 Bonds xxxxx xxxxx Subtotal xxxxx xxxxx xxxxx xxxxx(0399999) Total xxxxx xxxxx Total xxxxx xxxxx xxxxx xxxxx

Note: For the intermediate category of hedging, we recommend that the risk mitigation and resulting RBC credit be determined as if each specific security common to both the index/basket hedge and theportfolio is a basic hedge with the entire basic hedge methodology applied to each matching name. This includes the application of the maturity mismatch formula and the maximum RBC credit of 94% of the C-1 asset charge for fixed income hedges.

† Columns are derived from Investment schedules.‡ The portion of Column (2) Notional Amount of the Hedging Instrument that hedges Column (7) Book / Adjusted Carrying Value. This amount cannot exceed Column (7) Book / Adjusted Carrying Value.§ Factor based on Column (10) NAIC Designation and NAIC C-1 RBC factors table. * Column (7) Book Adjusted Carrying Value multiplied by Column (11) RBC Factor.£ Column (13) is calculated according to the risk-based capital instructions.

** Column (12) Gross RBC Charge minus Column (13) RBC Credit for Hedging Instruments.

Denotes manual entry items that do not come directly from the annual statement.

Hedging Instruments Hedged Asset - Bonds RBC Credit

LR014

Attachment D

35


OFF-BALANCE SHEET COLLATERAL (Including any Schedule DL, Part 1 Assets not Included in the Asset Valuation Reserve)

(1) (2) (3)Book / Adjusted RBC

Annual Statement Source Carrying Value Factor RequirementFixed Income - Bonds

(1) Exempt Obligations Company Records (See Comment A) X 0.000 =(2.1) NAIC Designation Category 1.A Company Records X 0.0039 =(2.2) NAIC Designation Category 1.B Company Records X 0.0039 =(2.3) NAIC Designation Category 1.C Company Records X 0.0039 =(2.4) NAIC Designation Category 1.D Company Records X 0.0039 =(2.5) NAIC Designation Category 1.E Company Records X 0.0039 =(2.6) NAIC Designation Category 1.F Company Records X 0.0039 =(2.7) NAIC Designation Category 1.G Company Records X 0.0039 =


(3.1) NAIC Designation Category 2.A Company Records X 0.0126 =(3.2) NAIC Designation Category 2.B Company Records X 0.0126 =(3.3) NAIC Designation Category 2.C Company Records X 0.0126 =








(7) NAIC 6 Company Records X 0.300 =

(8) Total Bonds Sum of Lines (1) + (2.8) + (3.4) + (4.4) + (5.4) + (6.4) + (7)

Fixed Income - Preferred Stock(9) Asset NAIC 1 Company Records X 0.0039 =

(10) Asset NAIC 2 Company Records X 0.0126 =(11) Asset NAIC 3 Company Records X 0.0446 =(12) Asset NAIC 4 Company Records X 0.0970 =(13) Asset NAIC 5 Company Records X 0.2231 =(14) Asset NAIC 6 Company Records X 0.300 =

(15) Total Preferred Stock Sum of Lines (9) through (14)

(16) Common Stock Company Records X 0.450 † =

(17) Schedule BA - Other Invested Assets Company Records X 0.300 =

(18) Other Invested Assets Company Records X 0.300 =

(19) Total Off-Balance Sheet Collateral Lines (8) + (15) + (16) + (17) + (18)

† The factor for common stock can vary depending on the type of stock. The factor would be subject to a minimum of 22.5 percent and a maximum of 45 percent.

Denotes items that must be manually entered on the filing software. #

LR018

Attachment D

36

COMMENTS

A. Although derived from company records, the same questions expressed on the AVR tab for Exempt Obligatoins apply here as well.

LR018

Attachment D

37


CALCULATION OF TAX EFFECT FOR LIFE and FRATERNAL RISK-BASED CAPITAL

(1) (2)Source RBC Amount Tax Factor RBC Tax Effect

ASSET RISKSBonds

(001) Long-term Bonds – NAIC 1 LR002 Bonds Column (2) Line (2.8) + LR018 Off-Balance Sheet Collateral X 0.1575 =Column (3) Line (2.8)





(006) Long-term Bonds – NAIC 6 LR002 Bonds Column (2) Line (7) + LR018 Off-Balance Sheet Collateral X 0.2100 =Column (3) Line (7)

(007) Short-term Bonds – NAIC 1 LR002 Bonds Column (2) Line (10.8) X 0.1575 =(008) Short-term Bonds – NAIC 2 LR002 Bonds Column (2) Line (11.4) X 0.1575 =(009) Short-term Bonds – NAIC 3 LR002 Bonds Column (2) Line (12.4) X 0.1575 =(010) Short-term Bonds – NAIC 4 LR002 Bonds Column (2) Line (13.4) X 0.1575 =(011) Short-term Bonds – NAIC 5 LR002 Bonds Column (2) Line (14.4) X 0.1575 =(012) Short-term Bonds – NAIC 6 LR002 Bonds Column (2) Line (15) X 0.2100 =(013) Credit for Hedging - NAIC 1 Through 5 Bonds LR014 Hedged Asset Bond Schedule Column (13) Line (0199999) X 0.1575 = †(014) Credit for Hedging - NAIC 6 Bonds LR014 Hedged Asset Bond Schedule Column (13) Line (0299999) X 0.2100 = †(015) Bond Reduction - Reinsurance LR002 Bonds Column (2) Line (19) X 0.2100 = †(016) Bond Increase - Reinsurance LR002 Bonds Column (2) Line (20) X 0.2100 =(017) Non-Exempt NAIC 1 U.S. Government Agency LR002 Bonds Column (2) Line (22) X 0.1575 =(018) Bonds Size Factor LR002 Bonds Column (2) Line (26) - LR002 Bonds Column (2) Line (21) X 0.1575 =

Mortgages

In Good Standing(019) Residential Mortgages - Insured LR004 Mortgages Column (6) Line (1) X 0.1575 =(020) Residential Mortgages - Other LR004 Mortgages Column (6) Line (2) X 0.1575 =(021) Commercial Mortgages - Insured LR004 Mortgages Column (6) Line (3) X 0.1575 =(022) Total Commercial Mortgages - All Other LR004 Mortgages Column (6) Line (9) X 0.1575 =(023) Total Farm Mortgages LR004 Mortgages Column (6) Line (15) X 0.1575 =

90 Days Overdue(024) Farm Mortgages LR004 Mortgages Column (6) Line (16) X 0.1575 =(025) Residential Mortgages - Insured LR004 Mortgages Column (6) Line (17) X 0.1575 =(026) Residential Mortgages - Other LR004 Mortgages Column (6) Line (18) X 0.1575 =(027) Commercial Mortgages - Insured LR004 Mortgages Column (6) Line (19) X 0.1575 =(028) Commercial Mortgages - Other LR004 Mortgages Column (6) Line (20) X 0.1575 =

In Process of Foreclosure(029) Farm Mortgages LR004 Mortgages Column (6) Line (21) X 0.1575 =

† Denotes lines that are deducted from the total rather than added.


LR030

Attachment D

38

CALCULATION OF TAX EFFECT FOR LIFE RISK-BASED CAPITAL (CONTINUED)


(030) Residential Mortgages - Insured LR004 Mortgages Column (6) Line (22) X 0.1575 =(031) Residential Mortgages - Other LR004 Mortgages Column (6) Line (23) X 0.1575 =(032) Commercial Mortgages - Insured LR004 Mortgages Column (6) Line (24) X 0.1575 =(033) Commercial Mortgages - Other LR004 Mortgages Column (6) Line (25) X 0.1575 =(034) Due & Unpaid Taxes Mortgages LR004 Mortgages Column (6) Line (26) X 0.1575 =(035) Due & Unpaid Taxes - Foreclosures LR004 Mortgages Column (6) Line (27) X 0.1575 =(036) Mortgage Reduction - Reinsurance LR004 Mortgages Column (6) Line (29) X 0.2100 = †(037) Mortgage Increase - Reinsurance LR004 Mortgages Column (6) Line (30) X 0.2100 =

Preferred Stock and Hybrid Securities (See Comment A below)(038) Unaffiliated Preferred Stock and Hybrids NAIC 1 LR005 Unaffiliated Preferred and Common Stock Column (5) Line (1) + Line (8) X 0.1575 =

+ LR018 Off-Balance Sheet Collateral Column (3) Line (9)(039) Unaffiliated Preferred Stock and Hybrids NAIC 2 LR005 Unaffiliated Preferred and Common Stock Column (5) Line (2) + Line (9) X 0.1575 =





+ LR018 Off-Balance Sheet Collateral Column (3) Line (14)(044) Preferred Stock Reduction-Reinsurance LR005 Unaffiliated Preferred and Common Stock Column (5) Line (8) X 0.2100 = †(045) Preferred Stock Increase-Reinsurance LR005 Unaffiliated Preferred and Common Stock Column (5) Line (9) X 0.2100 =

Separate Accounts(046) Guaranteed Index LR006 Separate Accounts Column (3) Line (1) X 0.1575 =(047) Nonindex-Book Reserve LR006 Separate Accounts Column (3) Line (2) X 0.1575 =(048) Separate Accounts Nonindex-Market Reserve LR006 Separate Accounts Column (3) Line (3) X 0.1575 =(049) Separate Accounts Reduction-Reinsurance LR006 Separate Accounts Column (3) Line (5) X 0.2100 = †(050) Separate Accounts Increase-Reinsurance LR006 Separate Accounts Column (3) Line (6) X 0.2100 =(051) Synthetic GICs LR006 Separate Accounts Column (3) Line (8) X 0.1575 =(052) Separate Account Surplus LR006 Separate Accounts Column (3) Line (13) X 0.1575 =

Real Estate(053) Company Occupied Real Estate LR007 Real Estate Column (3) Line (3) X 0.2100 =(054) Foreclosed Real Estate LR007 Real Estate Column (3) Line (6) X 0.2100 =(055) Investment Real Estate LR007 Real Estate Column (3) Line (9) X 0.2100 =(056) Real Estate Reduction - Reinsurance LR007 Real Estate Column (3) Line (11) X 0.2100 = †(057) Real Estate Increase - Reinsurance LR007 Real Estate Column (3) Line (12) X 0.2100 =

Schedule BA(058) Sch BA Real Estate Excluding Low Income LR007 Real Estate Column (3) Line (16) X 0.2100 =

Housing Tax Credits(059) Guaranteed Low Income Housing Tax Credits LR007 Real Estate Column (3) Line (17) + Line (19) X 0.0000 =(060) Non-Guaranteed and All Other Low Income Housing Tax Credits LR007 Real Estate Column (3) Line (18) + Line (20) + Line (21) X 0.0000 =(061) Sch BA Real Estate Reduction - Reinsurance LR007 Real Estate Column (3) Line (23) X 0.2100 = †(062) Sch BA Real Estate Increase - Reinsurance LR007 Real Estate Column (3) Line (24) X 0.2100 =



LR030

Attachment D

39



(063) Sch BA Bond NAIC 1 LR008 Other Long-Term Assets Column (5) Line (2) X 0.1575 =(064) Sch BA Bond NAIC 2 LR008 Other Long-Term Assets Column (5) Line (3) X 0.1575 =(065) Sch BA Bond NAIC 3 LR008 Other Long-Term Assets Column (5) Line (4) X 0.1575 =(066) Sch BA Bond NAIC 4 LR008 Other Long-Term Assets Column (5) Line (5) X 0.1575 =(067) Sch BA Bond NAIC 5 LR008 Other Long-Term Assets Column (5) Line (6) X 0.1575 =(068) Sch BA Bond NAIC 6 LR008 Other Long-Term Assets Column (5) Line (7) X 0.2100 =(069) BA Bond Reduction - Reinsurance LR008 Other Long-Term Assets Column (5) Line (9) X 0.2100 = †(070) BA Bond Increase - Reinsurance LR008 Other Long-Term Assets Column (5) Line (10) X 0.2100 =(071) BA Preferred Stock NAIC 1 LR008 Other Long-Term Assets Column (5) Line (12.3) X 0.1575 =(072) BA Preferred Stock NAIC 2 LR008 Other Long-Term Assets Column (5) Line (13) X 0.1575 =(073) BA Preferred Stock NAIC 3 LR008 Other Long-Term Assets Column (5) Line (14) X 0.1575 =(074) BA Preferred Stock NAIC 4 LR008 Other Long-Term Assets Column (5) Line (15) X 0.1575 =(075) BA Preferred Stock NAIC 5 LR008 Other Long-Term Assets Column (5) Line (16) X 0.1575 =(076) BA Preferred Stock NAIC 6 LR008 Other Long-Term Assets Column (5) Line (17) X 0.2100 =(077) BA Preferred Stock Reduction-Reinsurance LR008 Other Long-Term Assets Column (5) Line (19) X 0.2100 = †(078) BA Preferred Stock Increase - Reinsurance LR008 Other Long-Term Assets Column (5) Line (20) X 0.2100 =(079) Rated Surplus Notes LR008 Other Long-Term Assets Column (5) Line (31) X 0.1575 =(080) Rated Capital Notes LR008 Other Long-Term Assets Column (5) Line (41) X 0.1575 =(081) BA Common Stock Affiliated LR008 Other Long-Term Assets Column (5) Line (48.3) X 0.2100 =(082) BA Collateral Loans LR008 Other Long-Term Assets Column (5) Line (50) X 0.1575 =(083) Other BA Assets LR008 Other Long-Term Assets Column (5) Line (52.3) + LR018 Off-Balance X 0.2100 =

Sheet Collateral Column (3) Line (17) + Line (18)(084) Other BA Assets Reduction-Reinsurance LR008 Other Long-Term Assets Column (5) Line (54) X 0.2100 = †(085) Other BA Assets Increase - Reinsurance LR008 Other Long-Term Assets Column (5) Line (55) X 0.2100 =(086) BA Mortgages - In Good Standing LR009 Schedule BA Mortgages Column (6) Line (11) X 0.1575 =(087) BA Mortgages - 90 Days Overdue LR009 Schedule BA Mortgages Column (6) Line (15) X 0.1575 =(088) BA Mortgages - In Process of Foreclosure LR009 Schedule BA Mortgages Column (6) Line (19) X 0.1575 =(089) Reduction - Reinsurance LR009 Schedule BA Mortgages Column (6) Line (21) X 0.2100 = †(090) Increase - Reinsurance LR009 Schedule BA Mortgages Column (6) Line (22) X 0.2100 =

Miscellaneous(091) Asset Concentration Factor LR010 Asset Concentration Factor Column (6) Line (62) Grand Total Page X 0.1575 =(092) Miscellaneous Assets LR012 Miscellaneous Assets Column (2) Line (7) X 0.1575 =(093) Derivatives - Collateral and Exchange Traded LR012 Miscellaneous Assets Column (2) Lines (8) + (9) + (10) X 0.1575 =(094) Derivatives NAIC 1 LR012 Miscellaneous Assets Column (2) Line (11) X 0.1575 =(095) Derivatives NAIC 2 LR012 Miscellaneous Assets Column (2) Line (12) X 0.1575 =(096) Derivatives NAIC 3 LR012 Miscellaneous Assets Column (2) Line (13) X 0.1575 =(097) Derivatives NAIC 4 LR012 Miscellaneous Assets Column (2) Line (14) X 0.1575 =(098) Derivatives NAIC 5 LR012 Miscellaneous Assets Column (2) Line (15) X 0.1575 =(099) Derivatives NAIC 6 LR012 Miscellaneous Assets Column (2) Line (16) X 0.2100 =(100) Miscellaneous Assets Reduction-Reinsurance LR012 Miscellaneous Assets Column (2) Line (19) X 0.2100 = †(101) Miscellaneous Assets Increase-Reinsurance LR012 Miscellaneous Assets Column (2) Line (20) X 0.2100 =



LR030

Attachment D

40



(102) Replications LR013 Replication (Synthetic Asset) Transactions and Mandatory X 0.1575 =Convertible Securities Column (7) Line (9999999)

(103) Reinsurance LR016 Reinsurance Column (4) Line (17) X 0.2100 =(104) Investment Affiliates LR042 Summary for Affiliated Investments Column (4) Line (6) X 0.2100 =(105) Investment in Parent LR042 Summary for Affiliated Investments Column (4) Line (10) X 0.2100 =(106) Other Affiliate: Property and Casualty Insurers LR042 Summary for Affiliated Investments Column (4) Line (11) X 0.2100 =

not Subject to Risk-Based Capital(107) Other Affiliate: Life Insurers not Subject to LR042 Summary for Affiliated Investments Column (4) Line (12) X 0.2100 =

Risk-Based Capital(108) Publicly Traded Insurance Affiliates LR042 Summary for Affiliated Investments Column (4) Line (14) X 0.2100 =(109) Subtotal for C-1o Assets Sum of Lines (001) through (108), Recognizing the Deduction of Lines (013),

(014), (015), (036), (044), (049), (056), (061), (069), (077), (084), (089) and (100) C-0 Affiliated Common Stock

(110) Off-Balance Sheet and Other Items LR017 Off-Balance Sheet and Other Items Column (5) Line (27) X 0.1575 =(111) Off-Balance Sheet Items Reduction - Reinsurance LR017 Off-Balance Sheet and Other Items Column (5) Line (28) X 0.2100 = †(112) Off-Balance Sheet Items Increase - Reinsurance LR017 Off-Balance Sheet and Other Items Column (5) Line (29) X 0.2100 =(113) Affiliated US Property - Casualty Insurers LR042 Summary for Affiliated Investments Column (4) Line (1) X 0.2100 =

Directly Owned(114) Affiliated US Life Insurers Directly Owned LR042 Summary for Affiliated Investments Column (4) Line (2) X 0.2100 =(115) Affiliated US Health Insurers Directly and LR042 Summary for Affiliated Investments Column (4) Line (3) X 0.2100 =

Indirectly Owned(116) Affiliated US Property - Casualty Insurers LR042 Summary for Affiliated Investments Column (4) Line (4) X 0.2100 =

Indirectly Owned(117) Affiliated US Life Insurers Indirectly Owned LR042 Summary for Affiliated Investments Column (4) Line (5) X 0.2100 =(118) Affiliated Alien Life Insurers - Canadian LR042 Summary for Affiliated Investments Column (4) Line (8) X 0.2100 =(119) Affiliated Alien Life Insurers - All Others LR042 Summary for Affiliated Investments Column (4) Line (9) X 0.0000 =(120) Subtotal for C-0 Affiliated Common Stock Lines (110)-(111)+(112)+(113)+(114)+(115)+(116)+(117)+(118)+(119)

Common Stock(121) Unaffiliated Common Stock LR005 Unaffiliated Preferred and Common Stock Column (5) Line (17) + X 0.2100 =

LR018 Off-Balance Sheet Collateral Column (3) Line (16)(122) Credit for Hedging - Common Stock LR015 Hedged Asset Common Stock Schedule Column (10) Line (0299999) X 0.2100 = †(123) Stock Reduction - Reinsurance LR005 Unaffiliated Preferred and Common Stock Column (5) Line (19) X 0.2100 = †(124) Stock Increase - Reinsurance LR005 Unaffiliated Preferred and Common Stock Column (5) Line (20) X 0.2100 =(125) BA Common Stock Unaffiliated LR008 Other Long-Term Assets Column (5) Line (47) X 0.2100 =(126) BA Common Stock Affiliated - C-1cs LR008 Other Long-Term Assets Column (5) Line (49.2) X 0.2100 =(127) Common Stock Concentration Factor LR011 Common Stock Concentration Factor Column (6) Line (6) X 0.2100 =(128) NAIC 01 Working Capital Finance Notes LR008 Other Long-Term Assets Column (5) Line (51.1) X 0.1575 =(129) NAIC 02 Working Capital Finance Notes LR008 Other Long-Term Assets Column (5) Line (51.2) X 0.1575 =(130) Affiliated Preferred Stock and Common Stock - LR042 Summary for Affiliated Investments Column (4) Line (7) X 0.2100 =

Holding Company in Excess of Indirect Subs(131) Affiliated Preferred Stock and Common Stock - LR042 Summary for Affiliated Investments Column (4) Line (13) X 0.2100 =

All Other(132) Total for C-1cs Assets Lines (121)-(122)-(123)+(124)+(125)+(126)+(127)+(128)+(129)+(130)+(131)

Insurance Risk(133) Disability Income Premium LR019 Health Premiums Column (2) Lines (21) through (27) X 0.2100 =



LR030

Attachment D

41



(134) Long-Term Care LR019 Health Premiums Column (2) Line (28) + LR023 Long-Term Care X 0.2100 =Column (4) Line (7)

(135) Life Insurance C-2 Risk LR025 Life Insurance Column (2) Line (8) X 0.2100 =(136) Group Insurance C-2 Risk LR025 Life Insurance Column (2) Lines (20) and (21) X 0.2100 =(137) Disability and Long-Term Care Health LR024 Health Claim Reserves Column (4) Line (9) + Line (15) X 0.2100 =

Claim Reserves(138) Premium Stabilization Credit LR026 Premium Stabilization Reserves Column (2) Line (10) X 0.0000 =(139) Total C-2 Risk Lines (133) + (134) + (135) + (136) + (137) + (138)

(140) Interest Rate Risk LR027 Interest Rate Risk Column (3) Line (36) X 0.2100 =(141) Health Credit Risk LR028 Health Credit Risk Column (2) Line (7) X 0.0000 =(142) Market Risk LR027 Interest Rate Risk Column (3) Line (37) X 0.2100 =(143) Business Risk LR029 Business Risk Column (2) Line (40) X 0.2100 =(144) Health Administrative Expenses LR029 Business Risk Column (2) Line (57) X 0.0000 =

(145) Total Tax Effect Lines (109) + (120) + (132) + (139) + (140) + (141) + (142) + (143) + (144)

Comments

A. "and Hybrid Securities" needs to be removed from description of Line just above line 038.

LR030

Attachment D

42

CALCULATION OF AUTHORIZED CONTROL LEVEL RISK-BASED CAPITAL (1)

RBCSource Requirement

Asset Risk - Affiliated Amounts (C-0)(1) Affiliated US Property-Casualty Insurers Directly Owned LR042 Summary for Affiliated Investments Column (4) Line (1)(2) Affiliated US Life Insurers Directly Owned LR042 Summary for Affiliated Investments Column (4) Line (2)(3) Affiliated US Health Insurers Directly and Indirectly Owned LR042 Summary for Affiliated Investments Column (4) Line (3)(4) Affiliated US Property-Casualty Insurers Indirectly Owned LR042 Summary for Affiliated Investments Column (4) Line (4)(5) Affiliated US Life Insurers Indirectly Owned LR042 Summary for Affiliated Investments Column (4) Line (5)(6) Affiliated Alien Life Insurers - Canadian LR042 Summary for Affiliated Investments Column (4) Line (8)(7) Affiliated Alien Life Insurers - All Others LR042 Summary for Affiliated Investments Column (4) Line (9)(8) Off-Balance Sheet and Other Items LR017 Off-Balance Sheet and Other Items Column (5) Line (34)(9) Total (C-0) - Pre-Tax Sum of Lines (1) through (8)

(10) (C-0) Tax Effect LR030 Calculation of Tax Effect for Life Risk-Based Capital Column (2) Line (120)(11) Net (C-0) - Post-Tax Line (9) - Line (10)

Asset Risk – Unaffiliated Common Stock and Affiliated Non-Insurance Stock (C-1cs)(12) Schedule D Unaffiliated Common Stock LR005 Unaffiliated Common Stock Column (5) Line (21) + LR018 Off-Balance Sheet

Collateral Column (3) Line (16)(13) Schedule BA Unaffiliated Common Stock LR008 Other Long-Term Assets Column (5) line (47)(14) Schedule BA Affiliated Common Stock - C-1cs LR008 Other Long-Term Assets Column (5) line (49.2)(15) Common Stock Concentration Factor LR011 Common Stock Concentration Factor Column (6) Line (6)(16) Affiliated Preferred Stock and Common Stock - Holding Company in Excess of LR042 Summary for Affiliated Investments Column (4) Line (7)

Indirect Subsidiaries(17) Affiliated Preferred Stock and Common Stock - All Other LR042 Summary for Affiliated Investments Column (4) Line (13)(18) Total (C-1cs) - Pre-Tax Sum of Lines (12) through (17)(19) (C-1cs) Tax Effect LR030 Calculation of Tax Effect for Life Risk-Based Capital Column (2) Line (132)(20) Net (C-1cs) - Post-Tax Line (18) - Line (19)

Asset Risk - All Other (C-1o)(21) Bonds after Size Factor LR002 Bonds Column (2) Line (27) + LR018 Off-Balance Sheet Collateral

Column (3) Line (8)(22) Mortgages (including past due and unpaid taxes) LR004 Mortgages Column (6) Line (31)(23) Unaffiliated Preferred Stock Including Hybrids LR005 Unaffiliated Preferred and Common Stock Column (5) Line (10) +

LR018 Off-Balance Sheet Collateral Column (3) Line (15)(24) Affiliated Preferred Stock and Common Stock - Investment Subsidiaries LR042 Summary for Affiliated Investments Column (4) Line (6)(25) Affiliated Preferred Stock and Common Stock - Parent LR042 Summary for Affiliated Investments Column (4) Line (10)(26) Affiliated Preferred Stock and Common Stock - Property and Casualty Insurers not LR042 Summary for Affiliated Investments Column (4) Line (11)

Subject to Risk-Based Capital(27) Affiliated Preferred Stock and Common Stock - Life Insurers not Subject to Risk-Based LR042 Summary for Affiliated Investments Column (4) Line (12)

Capital(28) Affiliated Preferred Stock and Common Stock - Publicly Traded Insurers Held at LR042 Summary for Affiliated Investments Column (4) Line (14)

Fair Value (excess of statement value over book value)(29) Separate Accounts with Guarantees LR006 Separate Accounts Column (3) Line (7)


Attachment D

43

CALCULATION OF AUTHORIZED CONTROL LEVEL RISK-BASED CAPITAL (CONTINUED)(1)


(30) Synthetic GIC's (C-1o) LR006 Separate Accounts Column (3) Line (8)(31) Surplus in Non-Guaranteed Separate Accounts LR006 Separate Accounts Column (3) Line (13)(32) Real Estate (gross of encumbrances) LR007 Real Estate Column (3) Line (13)(33) Schedule BA Real Estate (gross of encumbrances) LR007 Real Estate Column (3) Line (25)(34) Other Long-Term Assets LR008 Other Long-Term Assets Column (5) Line (56) + LR018 Off-Balance Sheet

Collateral Column (3) Line (17) + Line (18)(35) Schedule BA Mortgages LR009 Schedule BA Mortgages Column (6) Line (23)(36) Concentration Factor LR010 Asset Concentration Factor Column (6) Line (62) Grand Total Page(37) Miscellaneous LR012 Miscellaneous Assets Column (2) Line (21)(38) Replication Transactions and Mandatory Convertible Securities LR013 Replication (Synthetic Asset) Transactions and Mandatory

Convertible Securities Column (7) Line (9999999)(39) Reinsurance LR016 Reinsurance Column (4) Line (17)(40) Total (C-1o) - Pre-Tax Sum of Lines (21) through (39)(41) (C-1o) Tax Effect LR030 Calculation of Tax Effect for Life Risk-Based Capital Column (2) Line (109)(42) Net (C-1o) - Post-Tax Line (40) - Line (41)

Insurance Risk (C-2)(43) Individual and Industrial Life Insurance LR025 Life Insurance Column (2) Line (8)(44) Group and Credit Life Insurance and FEGI/SGLI LR025 Life Insurance Column (2) Lines (20) and (21)(45) Total Health Insurance LR024 Health Claim Reserves Column (4) Line (18)(46) Premium Stabilization Reserve Credit LR026 Premium Stabilization Reserves Column (2) Line (10)(47) Total (C-2) - Pre-Tax Sum of Lines (43) through (46)(48) (C-2) Tax Effect LR030 Calculation of Tax Effect for Life Risk-Based Capital Column (2) Line (139)(49) Net (C-2) - Post-Tax Line (47) - Line (48)

Interest Rate Risk (C-3a)(50) Total Interest Rate Risk - Pre-Tax LR027 Interest Rate Risk Column (3) Line (36)(51) (C-3a) Tax Effect LR030 Calculation of Tax Effect for Life Risk-Based Capital Column (2) Line (140)(52) Net (C-3a) - Post-Tax Line (50) - Line (51)

Health Credit Risk (C-3b)(53) Total Health Credit Risk - Pre-Tax LR028 Health Credit Risk Column (2) Line (7)(54) (C-3b) Tax Effect LR030 Calculation of Tax Effect for Life Risk-Based Capital Column (2) Line (141)(55) Net (C-3b) - Post-Tax Line (53) - Line (54)

Market Risk (C-3c)(56) Total Market Risk - Pre-Tax LR027 Interest Rate Risk Column (3) Line (37)(57) (C-3c) Tax Effect LR030 Calculation of Tax Effect for Life Risk-Based Capital Column (2) Line (142)(58) Net (C-3c) - Post-Tax Line (56) - Line (57)


Attachment D

44



Business Risk (C-4a)(59) Premium Component LR029 Business Risk Column (2) Lines (12) + (24) + (36)(60) Liability Component LR029 Business Risk Column (2) Line (39)(61) Subtotal Business Risk (C-4a) - Pre-Tax Lines (59) + (60) (62) (C-4a) Tax Effect LR030 Calculation of Tax Effect for Life Risk-Based Capital Column (2) Line (143)(63) Net (C-4a) - Post-Tax Line (61) - Line (62)

Business Risk (C-4b)(64) Health Administrative Expense Component of Business Risk (C-4b) - Pre-Tax LR029 Business Risk Column (2) Line (57)(65) (C-4b) Tax Effect LR030 Calculation of Tax Effect for Life Risk-Based Capital Column (2) Line (144)(66) Net (C-4b) - Post-Tax Line (64) - Line (65)

Total Risk-Based Capital After Covariance Before Basic Operational Risk(67) C-0 + C-4a + Square Root of [(C-1o + C-3a)² + (C-1cs + C-3c)² + (C-2)² + (C-3b)² REPORT AMOUNT ON PARENT COMPANY'S RBC IF APPLICABLE

+ (C-4b)²] L(11)+L(63) + Square Root of [(L(42) + L(52))² + (L(20) + L(58))² + L(49)² + L(55)² + L(66)²]

(68) Gross Basic Operational Risk 0.03 x L(67)(69) C-4a of U.S. Life Insurance Subsidiaries Company Records(70) Net Basic Operational Risk Line (68) - (Line (63) + Line (69)) (Not less than zero)

(71) Primary Security Shortfall Calculated in Accordance With Actuarial Guideline XLVIII LR036 XXX/AXXX Reinsurance Primary Security Shortfall by Cession Column (7) Line (9999999)Multiplied by 2 Multiplied by 2

(72) Total Risk-Based Capital After Covariance (Including Basic Operational Risk and Primary Security Shortfall multiplied by 2) Line (67) + Line (70) + Line (71)

Authorized Control Level Risk-Based Capital (After Covariance Adjustment and Shortfall)(73) Total Risk-Based Capital After Covariance Times Fifty Percent Line (72) x 0.50

Tax Sensitivity Test(74) Tax Sensitivity Test: Total Risk-Based Capital After Covariance L(9)+L(61) + Square Root of [(L(40) + L(50))² + (L(18) + L(56))² + L(47)² + L(53)²

+ L(64)²](75) Tax Sensitivity Test: Authorized Control Level Risk-Based Capital Line (74) x 0.50

Attachment D

45


1 2 3 4

Book / Balance for 5 6 7 8 9 10

Line NAIC Adjusted Reclassify Add AVR Reserve Amount

Num- Desig- Carrying Related Party Third Party Calculations Amount (Cols. Amount

ber nation Description Value Encumbrances Encumbrances (Cols. 1+2+3) Factor (Cols. 4x5) Factor 4x7) Factor (Cols. 4x9)

LONG-TERM BONDS

1 Exempt Obligations (See comment A) XXX XXX 0.0000 0.0000 0.0000

2.1 1 NAIC Designation Category 1.A XXX XXX 0.0005 0.0016 0.0033

2.2 1 NAIC Designation Category 1.B XXX XXX 0.0005 0.0016 0.0033

2.3 1 NAIC Designation Category 1.C XXX XXX 0.0005 0.0016 0.0033

2.4 1 NAIC Designation Category 1.D XXX XXX 0.0005 0.0016 0.0033

2.5 1 NAIC Designation Category 1.E XXX XXX 0.0005 0.0016 0.0033

2.6 1 NAIC Designation Category 1.F XXX XXX 0.0005 0.0016 0.0033

2.7 1 NAIC Designation Category 1.G XXX XXX 0.0005 0.0016 0.0033

2.8 Subtotal NAIC 1




3.4 Subtotal NAIC 2




4.4 Subtotal NAIC 3




5.4 Subtotal NAIC 4




6.4 Subtotal NAIC 5

7 6 NAIC 68 Total Unrated Multi-class Securities Acquired by Conversion

9 Total Long-Term Bonds (Sum of Lines 1 + 2.8 + 3.4 + 4.4 + 5.4 + 6.4 + 7 + 8) (See Comment B)

PREFERRED STOCKS

10 1 Highest Quality

11 2 High Quality

12 3 Medium Quality

13 4 Low Quality

14 5 Lower Quality

15 6 In or Near Default

16 Affiliated Life with AVR

17 Total Preferred Stocks (Sum of Lines 10 through 16)

ASSET VALUATION RESERVEBASIC CONTRIBUTION, RESERVE OBJECTIVE AND MAXIMUM RESERVE CALCULATIONS

DEFAULT COMPONENTBasic Contribution Reserve Objective Maximum Reserve

AVR Default Component

Attachment D

46

SHORT - TERM BONDS

18 Exempt Obligations (See comment A) XXX XXX 0.0000 0.0000 0.0000








19.8 Subtotal NAIC 1

















24 6 NAIC 625 Total Short-term Bonds (Sum of Lines 19.8 + 20.4 + 21.4 + 22.4 + 23.4 + 24) XXX XXX XXX XXX XXX

COMMENTS

A. When composing the instructions for this line, care should be taken to be exact. For example, is it possible that Exempt Bonds and SVO Identified Bond Funds might carry an NAIC Designationof not just 1.A, but also 1.B, 1.C, 1.D, 1.E, 1.F, and 1.G? If so, should instructions indicate they be inlcuded in Line 1 as Exempt Obligations and not Lines 2.1 through 2.7 or be .included in Lines 2.1 through 2.7? Additionally, can SVO Identified Bond Funds carry other NAIC Designation Categories? For example, can those funds be 2.a, 2.b, 2.C. If so, where should they be reported, as Exempt Obligations, or not? Additionally, shoule "Exempt Obligations" include only SVO Identified Bond Funds or are SVO Identified ETFs also included? Current AVR instructionsdiscuss only Bond Funds, but do not specifically exclude the ETFs. Other RBC formulas appear to specifically only include the Bond Funds as Exempt.

B. In looking at the current AVR, it appears the correct formula for this line should be Sum of Lines 1 through 8.


Attachment D

47


48

(1) (2) (3) (4)






(1) NAIC 01 - U.S. Government - Direct and Guaranteed and NAIC U.S. Direct Obligations/Full Faith and Credit Exempt Money Market Mutual Fund List Company Records 0 0 0.000

(2) NAIC Designation Category 1.A Bonds Company Records 0 0(3) NAIC Designation Category 1.B Bonds Company Records 0 0(4) NAIC Designation Category 1.C Bonds Company Records 0 0(5) NAIC Designation Category 1.D Bonds Company Records 0 0(6) NAIC Designation Category 1.E Bonds Company Records 0 0(7) NAIC Designation Category 1.F Bonds Company Records 0 0(8) NAIC Designation Category 1.G Bonds Company Records 0 0(9) Total NAIC 01 Bonds Sum of Lines (1) through (8) 0 0 0 0

(9A) Other NAIC 01 Bonds L(9)-L(1) 0 0 0 0.003 0(10) NAIC Designation Category 2.A Bonds Company Records 0 0(11) NAIC Designation Category 2.B Bonds Company Records 0 0(12) NAIC Designation Category 2.C Bonds Company Records 0 0(13) Total NAIC 02 Bonds Sum of Lines (10) through (12) 0 0 0 0.010 0(14) NAIC Designation Category 3.A Bonds Company Records 0 0(15) NAIC Designation Category 3.B Bonds Company Records 0 0(16) NAIC Designation Category 3.C Bonds Company Records 0 0(17) Total NAIC 03 Bonds Sum of Lines (14) through (16) 0 0 0 0.020 0(18) NAIC Designation Category 4.A Bonds Company Records 0 0(19) NAIC Designation Category 4.B Bonds Company Records 0 0(20) NAIC Designation Category 4.C Bonds Company Records 0 0(21) Total NAIC 04 Bonds Sum of Lines (18) through (20) 0 0 0 0.045 0(22) NAIC Designation Category 5.A Bonds Company Records 0 0(23) NAIC Designation Category 5.B Bonds Company Records 0 0(24) NAIC Designation Category 5.C Bonds Company Records 0 0(25) Total NAIC 05 Bonds Sum of Lines (22) through (24) 0 0 0 0.100 0(26) Total NAIC 06 Bonds Company Records 0 0 0 0.300 0(27) Total Bonds Line (9) + (13) + (17) + (21) + (25) + (26) 0 0 0 0


(28) NAIC 01 Unaffiliated Preferred Stock Company Records 0 0 0 0.003 0(29) NAIC 02 Unaffiliated Preferred Stock Company Records 0 0 0 0.010 0(30) NAIC 03 Unaffiliated Preferred Stock Company Records 0 0 0 0.020 0(31) NAIC 04 Unaffiliated Preferred Stock Company Records 0 0 0 0.045 0(32) NAIC 05 Unaffiliated Preferred Stock Company Records 0 0 0 0.100 0(33) NAIC 06 Unaffiliated Preferred Stock Company Records 0 0 0 0.300 0(34) Total Unaffiliated Preferred Stock Sum of Lines (28) through (33) 0 0 0 0

(35) Unaffiliated Common Stock Company Records 0 0 0 0.150 0

(36) Real Estate and Property & Equipment Assets Company Records 0 0 0 0.100 0

(37) Other Invested Assets Company Records 0 0 0 0.200 0

(38) Mortgage Loans on Real Estate Company Records 0 0 0 0.050 0

(39) Cash, Cash Equivalents and Short-Term Investments Company Records 0 0 0 0.003 0(Not reported on Bonds above)

(40) Total L(27)+L(34)+L(35)+L(36)+L(37)+L(38)+L(39) 0 0 0 0

Denotes items that must be manually entered on the filing software.Denotes items will be used for internal analysis to determine the future RBC charge and will not be reflected in the RBC calculation.

OFF-BALANCE SHEET SECURITY LENDING COLLATERAL AND SCHEDULE DL, PART 1 ASSETS

XR006

Attachment E

49

FIXED INCOME ASSETS(1A) (2)

Electronic only Tables SourceBook/Adjusted Carrying

Value Annual Statement Source:Book/Adjusted Carrying

Value Factor RBC RequirementBONDS Sch D Pt 1A Sn 1

(1) NAIC U.S. Gov't -Dir & Guar/NAIC U.S. Dir Obli/Full Faith & Cr Ex MMFs List/Bond Mut Fund List/SVO Ident.Bond ETF List Table A Col (4) Line (1) 0 C7L1.1 0 0.0000 0

(2) NAIC Designation Category 1.A Bonds Table A Col (4) Line (2) 0(3) NAIC Designation Category 1.B Bonds Table A Col (4) Line (3) 0(4) NAIC Designation Category 1.C Bonds Table A Col (4) Line (4) 0(5) NAIC Designation Category 1.D Bonds Table A Col (4) Line (5) 0(6) NAIC Designation Category 1.E Bonds Table A Col (4) Line (6) 0(7) NAIC Designation Category 1.F Bonds Table A Col (4) Line (7) 0(8) NAIC Designation Category 1.G Bonds Table A Col (4) Line (8) 0(9) Total NAIC 01 Bonds Sum of Lines (1) through (8) 0 C7L11.1-L7.1 0

(9A) Total Other NAIC 01 Bonds xxx L(9)-L(1) 0 0.0030 0(10) NAIC Designation Category 2.A Bonds Table A Col (4) Line (9) 0(11) NAIC Designation Category 2.B Bonds Table A Col (4) Line (10) 0(12) NAIC Designation Category 2.C Bonds Table A Col (4) Line (11) 0(13) Total NAIC 02 Bonds Sum of Lines (10) through (12) 0 C7L11.2-L7.2 0 0.0100 0(14) NAIC Designation Category 3.A Bonds Table A Col (4) Line (12) 0(15) NAIC Designation Category 3.B Bonds Table A Col (4) Line (13) 0(16) NAIC Designation Category 3.C Bonds Table A Col (4) Line (14) 0(17) Total NAIC 03 Bonds Sum of Lines (14) through (16) 0 C7L11.3-L7.3 0 0.0200 0(18) NAIC Designation Category 4.A Bonds Table A Col (4) Line (15) 0(19) NAIC Designation Category 4.B Bonds Table A Col (4) Line (16) 0(20) NAIC Designation Category 4.C Bonds Table A Col (4) Line (17) 0(21) Total NAIC 04 Bonds Sum of Lines (18) through (20) 0 C7L11.4-L7.4 0 0.0450 0(22) NAIC Designation Category 5.A Bonds Table A Col (4) Line (18) 0(23) NAIC Designation Category 5.B Bonds Table A Col (4) Line (19) 0(24) NAIC Designation Category 5.C Bonds Table A Col (4) Line (20) 0(25) Total NAIC 05 Bonds Sum of Lines (22) through (24) 0 C7L11.5-L7.5 0 0.1000 0(26) Total NAIC 06 Bonds Table A Col (4) Line (21) 0 C7L11.6-L7.6 0 0.3000 0

(27) Total Bonds RBC = L(9) + L(13) + L(17) + L(21) + L(25) + L(26) 0

Denotes items will be used for internal analysis to determine the future RBC charge and will not be reflected in the RBC calculation. Denotes items that must be manually entered on filing software.

XR007.1

Attachment E

50

Tbl A - Schedule D Part 1: (1) (2) (3) (4)Schedule D, Part 1 - Long Term Bonds Schedule DA, Part 1 - Short Term Bonds Schedule E, Part 2 - Cash Eqivalents

RBC Bond Categories

Total Bonds L(1) = (Sch D Pt 1 C11 L0599999)

L(2) thru (21) = (Sch D Pt1 Footnote)

Total BondsL(1) = (Sch DA Pt 1 C7 L0599999)

L(2) thru (21) = (Sch DA Pt1 Footnote)

Total Bonds L(1) = (Sch E Pt2 C7 L0599999 +

L8599999)L(2) thru (21) = (Sch E Pt2 Footnote)

All Bonds

(1)

NAIC U.S. Gov't -Dir & Guar/NAIC U.S. Dir Obli/Full Faith & Cr Ex MMFs List/Bond Mut Fund List/SVO Ident.Bond ETF List 0 0 0 0

(2) NAIC Designation Category 1.A Excluding L(1) 0 0 0 0(3) NAIC Designation Category 1.B 0 0 0 0(4) NAIC Designation Category 1.C 0 0 0 0(5) NAIC Designation Category 1.D 0 0 0 0(6) NAIC Designation Category 1.E 0 0 0 0(7) NAIC Designation Category 1.F 0 0 0 0(8) NAIC Designation Category 1.G 0 0 0 0(9) NAIC Designation Category 2.A 0 0 0 0

(10) NAIC Designation Category 2.B 0 0 0 0(11) NAIC Designation Category 2.C 0 0 0 0(12) NAIC Designation Category 3.A 0 0 0 0(13) NAIC Designation Category 3.B 0 0 0 0(14) NAIC Designation Category 3.C 0 0 0 0(15) NAIC Designation Category 4.A 0 0 0 0(16) NAIC Designation Category 4.B 0 0 0 0(17) NAIC Designation Category 4.C 0 0 0 0(18) NAIC Designation Category 5.A 0 0 0 0(19) NAIC Designation Category 5.B 0 0 0 0(20) NAIC Designation Category 5.C 0 0 0 0(21) NAIC 06 0 0 0 0(22) Total 0 0 0


Attachment E

51

Table B - Crosscheck: (1) (2) (3)

Annual StatementSchedule D, Part

1A, Section 1, Column 7 RBC XR007.1, Column (1) Annual Statement RBC Report Difference

(1) NAIC 01 Line 11.1 Line (1) + (9) 0 0 0(2) NAIC 02 Line 11.2 Line (13) 0 0 0(3) NAIC 03 Line 11.3 Line (17) 0 0 0(4) NAIC 04 Line 11.4 Line (21) 0 0 0(5) NAIC 05 Line 11.5 Line (25) 0 0 0(6) NAIC 06 Line 11.6 Line (26) 0 0 0


Attachment E

52

FIXED INCOME ASSETS (cont.)MISCELLANEOUS FIXED INCOME ASSETS (1) (2)

Annual Statement Source Bk/Adj Carrying Value Factor RBC Requirement(28) Cash Page 2, Line 5, inside amount 1 0.0030(29) Cash Equivalents Page 2, Line 5, inside amount 2(30) Less: Cash Equivalent, Bonds included in Schedule D, Part 1A Sch E Pt 2, C7, L8399999, in part(31) Less: Exempt Money Market Mutual Funds* Sch E Pt 2, C7, L8599999(32) Net Cash Equivalents L(29) - L(30) - L(31) 0.0030(33) Short-Term Investments Page 2, Line 5, inside amount 3(34) Short-Term Bonds * Sch DA, Pt 1, Col 7, L8399999(35) Total Other Short-Term Investments L(33)-L(34) 0.0030(36) Mortgage Loans - First Liens Page 2, Col 3, Line 3.1 0.0500(37) Mortgage Loans - Other Than First Liens Page 2, Col 3, Line 3.2 0.0500(38) Receivable for Securities Page 2, Col 3, Line 9 0.0240(39) Aggregate write-ins for invested assets Page 2, Col 3, Line 11 0.0500(40) Collateral Loans Included in Page 2, Col 3, Line 8 0.0500(41) NAIC 01 Working Capital Finance Investments Notes to Financial Statement 5M(01a), Col. 3 0.0038(42) NAIC 02 Working Capital Finance Investments Notes to Financial Statement 5M(01b), Col. 3 0.0125

(43)Other Long-Term Invested Assets Excluding Collateral Loans and Working Capital Finance Investments Included in Page 2, Col 3, Line 8 0.2000

(44) Federal Guaranteed Low Income Housing Tax Credits Schedule BA Part 1, Column 12 Lines 3199999 + 3299999 0.0014

(45) Federal Non-Guaranteed Low Income Housing Tax Credits Schedule BA Part 1, Column 12 Lines 3399999 + 3499999 0.0260

(46) State Guaranteed Low Income Housing Tax Credits Schedule BA Part 1, Column 12 Lines 3599999 + 3699999 0.0014

(47) State Non-Guaranteed Low Income Housing Tax Credits Schedule BA Part 1, Column 12 Lines 3799999 + 3899999 0.0260

(48) All Other Low Income Housing Tax Credits Schedule BA Part 1, Column 12 Lines 3999999 + 4099999 0.0150

(49) Total Other Long-Term Invested Assets (Page 2, Col 3, Line 8) L(40)+L(41)+L(42)+L(43)+L(44)+L(45)+L(46)+L(47)+ L(48)

(50) Derivatives Page 2, Col 3, Line 7 0.0500

L(27)+L(28)+L(32)+L(35)+L(36)+L(37)+L(38)(51) Total Fixed Income Assets RBC +L(39)+L(49)+L(50)


* These bonds appear in Schedule D Part 1A Section 1 and are already recognized in the Bond portion of the formula.

XR007.2

Attachment E

53

ASSET CONCENTRATION

Issuer Name (2) (3)

Bk/Adj Carrying Value Factor Additional RBC(1) NAIC Designation Category 2.A Bonds 0(2) NAIC Designation Category 2.B Bonds 0(3) NAIC Designation Category 2.C Bonds 0

(3A) NAIC 02 Bonds $0 0.0100 0(4) NAIC Designation Category 3.A Bonds 0(5) NAIC Designation Category 3.B Bonds 0(6) NAIC Designation Category 3.C Bonds 0



(12A)NAIC 05 Bonds $0 0.1000 0(13) Collateral Loans 0.0500(14) Mortgages 0.0500(15) NAIC 02 Unaffiliated Preferred Stock 0.0100(16) NAIC 03 Unaffiliated Preferred Stock 0.0200(17) NAIC 04 Unaffiliated Preferred Stock 0.0450(18) NAIC 05 Unaffiliated Preferred Stock 0.1000(19) NAIC 02 Hybrid Securities 0.0100(20) NAIC 03 Hybrid Securities 0.0200(21) NAIC 04 Hybrid Securities 0.0450(22) NAIC 05 Hybrid Securities 0.1000(23) Other Long-Term Invested Assets 0.1000(24) NAIC 02 Working Capital Finance Investments 0.0125(25) Federal Guaranteed Low Income Housing Tax Credits 0.0014(26) Federal Non-Guaranteed Low Income Housing Tax Credits 0.0260(27) State Guaranteed Low Income Housing Tax Credits 0.0014(28) State Non-Guaranteed Low Income Housing Tax Credits 0.0260(29) All Other Low Income Housing Tax Credits 0.0150(30) Unaffiliated Common Stock 0.1500(31) Total of Issuer = Lines (1) through (30)

Note: Ten issuer sections and a grand total page will be available on the filing software. The grand total page is calcuated as the sum of issuers 1-10 by asset type.


(1)

XR011

Attachment E

54

CALCULATION OF TOTAL RISK-BASED CAPITAL AFTER COVARIANCE(1)

RBC AmountH0 -AFFILIATES W/RBC AND MISC. OTHER AMOUNTS

(1) Off-Balance Sheet Items XR005, Off-Balance Sheet Page, L(21)(2) Directly Owned Insurer Subject to RBC XR003, Affiliates Page, L(1)(3) Indirectly Owned Insurer Subject to RBC XR003, Affiliates Page, L(2)(4) Directly Owned Health Entity Subject to RBC XR003, Affiliates Page, L(3)(5) Indirectly Owned Health Entity Subject to RBC XR003, Affiliates Page, L(4)(6) Directly Owned Alien Insurer XR003, Affiliates Page, L(7)(7) Indirectly Owned Alien Insurers XR003, Affiliates Page, L(8)(8) Total H0 Sum L(1) through L(7)

H1 - ASSET RISK - OTHER(9) Investment Affiliates XR003, Affiliates Page, L(5)

(10) Holding Company Excess of Subsidiaries XR003, Affiliates Page, L(6)(11) Investment in Parent XR003, Affiliates Page, L(9)(12) Other Affiliates XR003, Affiliates Page, L(10)(13) Fair Value Excess Affiliate Common Stock XR003, Affiliates Page, L(11)(14) Fixed Income Assets XR006, Off-Balance Sheet Collateral, L(27) + L(37) +

L(38) + L(39) + XR007.2, Fixed Income Assets Page, L(51)

(15) Replication & Mandatory Convertible Securities XR008, Replication/MCS Page, L(9999999)(16) Unaffiliated Preferred Stock and Hybrid Securities XR006, Off-Balance Sheet Collateral, L(34) + XR009,

Equity Assets Page, L(15)(17) Unaffiliated Common Stock XR006, Off-Balance Sheet Collateral, L(35) +XR009,

Equity Assets Page, L(20)(18) Property & Equipment XR006, Off-Balance Sheet Collateral, L(36) + XR010,

Prop/Equip Assets Page, L(9)(19) Asset Concentration XR011, Grand Total Asset Concentration Page, L(31)(20) Total H1 Sum L(9) through L(19)

H2 - UNDERWRITING RISK(21) Net Underwriting Risk XR012, Underwriting Risk Page, L(21)

XR023

Attachment E

55

(22) Other Underwriting Risk XR014, Underwriting Risk Page, L(25.3)(23) Disability Income XR014, Underwriting Risk Page, L(26.3)+L(27.3)+L(28.3)+

(29.3)+(30.6)+(31.3)+(32.3)(24) Long-Term Care XR015, Underwriting Risk Page, L(41)(25) Limited Benefit Plans XR016, Underwriting Risk Page, L(42.2)+L(43.6)+L(44)(26) Premium Stabilization Reserve XR016, Underwriting Risk Page, L(45)(27) Total H2 Sum L(21) through L(26)


XR023

Attachment E

56

BONDS PR006

(1A) (1) (2)Electronic only Tables Source Book/Adjusted Carrying Value Annual Statement Source: Book/Adjusted Carrying Value Factor RBC Requirement

Sch D Pt 1A Sn1(1) NAIC 01 - U.S. Government - Direct and Guaranteed

and NAIC U.S. Direct Obligations/Full Faith and Credit Exempt Money Market Funds List/SVO Ident.Bond ETF List

Tbl A C(4) L(1)

0 C7L1.1 0 0.000 0(2A)

FULL FAITH AND CREDIT OF THE US GOVERNMENT xxx Incl in C7 L11.1 - L7.1 0 0.003 0

(2) NAIC Designation Category 1.A Tbl A C(4)L(2) 0(3) NAIC Designation Category 1.B Tbl A C(4)L(3) 0(4) NAIC Designation Category 1.C Tbl A C(4)L(4) 0(5) NAIC Designation Category 1.D Tbl A C(4)L(5) 0(6) NAIC Designation Category 1.E Tbl A C(4)L(6) 0(7) NAIC Designation Category 1.F Tbl A C(4)L(7) 0(8) NAIC Designation Category 1.G Tbl A C(4)L(8) 0(9) Total NAIC 01 Bonds Sum of Ls (2) through (8) 0 C7L11.1-L7.1 0

(9A) Total Other NAIC 01 Bonds xxx L(9)-L(1)-L(2A) 0 0.003 0(10) NAIC Designation Category 2.A Tbl A C(4)L(9) 0(11) NAIC Designation Category 2.B Tbl A C(4)L(10) 0(12) NAIC Designation Category 2.C Tbl A C(4)L(11) 0(13) Total NAIC 02 Bonds Sum of Ls (10) through (12) 0 C7L11.2-L7.2 0 0.010 0(14) NAIC Designation Category 3.A Tbl A C(4)L(12) 0(15) NAIC Designation Category 3.B Tbl A C(4)L(13) 0(16) NAIC Designation Category 3.C Tbl A C(4)L(14) 0(17) Total NAIC 03 Bonds Sum of Ls (14) through (16) 0 C7L11.3-L7.3 0 0.020 0(18) NAIC Designation Category 4.A Tbl A C(4)L(15) 0(19) NAIC Designation Category 4.B Tbl A C(4)L(16) 0(20) NAIC Designation Category 4.C Tbl A C(4)L(17) 0(21) Total NAIC 04 Bonds Sum of Ls (18) through (20) 0 C7L11.4-L7.4 0 0.045 0(22) NAIC Designation Category 5.A Tbl A C(4)L(18) 0(23) NAIC Designation Category 5.B Tbl A C(4)L(19) 0(24) NAIC Designation Category 5.C Tbl A C(4)L(20) 0(25) Total NAIC 05 Bonds Sum of Ls (22) through (24) 0 C7L11.5-L7.5 0 0.100 0(26) Total NAIC 06 Bonds Tbl A C(4)L(21) 0 C7L11.6-L7.6 0 0.300 0(27) Subtotal - Bonds Subject to Bond Size Factor L(9) + L(13) + L(17) + L(21) + L(25) + L(26) 0 L(9A) + L(13) + L(17) + L(21) + L(25) + L(26) 0 0(28) Number of Issuers 0 0(29) Bond Size Factor 1.500(30) Bond Size Factor RBC=C(2)L(27) x C(2)L(29) 0(31) Total Bonds RBC L(1)+L(2A)+L(27)+L(30) 0 0

PR006

Attachment F

57

Tbl A - Schedule D Part 1: (1) (2) (3) (4)Schedule D, Part 1 - Long Term Bonds Schedule DA, Part 1 - Short Term Bonds Schedule E, Part 2 - Cash Eqivalents

RBC Bond Categories

Total Bonds L(1) = (Sch D Pt 1 C11 L0599999)

L(2) thru (21) = (Sch D Pt1 Footnote)

Total BondsL(1) = (Sch DA Pt 1 C7 L0599999)

L(2) thru (21) = (Sch DA Pt1 Footnote)

Total Bonds L(1) = (Sch E Pt2 C7 L0599999 + L8599999)

L(2) thru (21) = (Sch E Pt2 Footnote)All Bonds

(1)

NAIC U.S. Gov't -Dir & Guar/NAIC U.S. Dir Obli/Full Faith & Cr Ex MMFs List/Bond Mut Fund List/SVO Ident.Bond ETF List 0 0 0 0

(2) NAIC Designation Category 1.A Excluding L(1) 0 0 0 0(3) NAIC Designation Category 1.B 0 0 0 0(4) NAIC Designation Category 1.C 0 0 0 0(5) NAIC Designation Category 1.D 0 0 0 0(6) NAIC Designation Category 1.E 0 0 0 0(7) NAIC Designation Category 1.F 0 0 0 0(8) NAIC Designation Category 1.G 0 0 0 0(9) NAIC Designation Category 2.A 0 0 0 0

(10) NAIC Designation Category 2.B 0 0 0 0(11) NAIC Designation Category 2.C 0 0 0 0(12) NAIC Designation Category 3.A 0 0 0 0(13) NAIC Designation Category 3.B 0 0 0 0(14) NAIC Designation Category 3.C 0 0 0 0(15) NAIC Designation Category 4.A 0 0 0 0(16) NAIC Designation Category 4.B 0 0 0 0(17) NAIC Designation Category 4.C 0 0 0 0(18) NAIC Designation Category 5.A 0 0 0 0(19) NAIC Designation Category 5.B 0 0 0 0(20) NAIC Designation Category 5.C 0 0 0 0(21) NAIC 06 0 0 0 0(22) Total 0 0 0

Tbl B - Crosscheck: (2) (3)Annual Statement

Schedule D Part 1A Section 1 Column 7RBC PR006 Column 1 RBC Report Difference

(1) NAIC 01 Line 11.1 L(1)+(9) 0 0(2) NAIC 02 Line 11.2 L(13) 0 0(3) NAIC 03 Line 11.3 L(17) 0 0(4) NAIC 04 Line 11.4 L(21) 0 0(5) NAIC 05 Line 11.5 L(25) 0 0(6) NAIC 06 Line 11.6 L(26) 0 0

Denotes items that must be vendor linked. Denotes items that must be manually entered on the filing software.Denotes items will be used for internal analysis to determine the future RBC charge and will not be reflected in the RBC calculation.

00

(1)

00

Annual Statement00

PR006

Attachment F

58

ASSET CONCENTRATION PR011

(1) (2) (3)

ISSUER #1

Book/Adjusted Carrying Value Factor Additional RBC

(1) NAIC Designation Category 2.A Bonds 0(2) NAIC Designation Category 2.B Bonds 0(3) NAIC Designation Category 2.C Bonds 0

(3A) NAIC 02 Bonds 0 0.0100 0(4) NAIC Designation Category 3.A Bonds 0(5) NAIC Designation Category 3.B Bonds 0(6) NAIC Designation Category 3.C Bonds 0



(12A) NAIC 05 Bonds 0 0.1000 0(13) Collateral Loans 0 0.0500 0(14) Mortgage Loans 0 0.0500 0(15) NAIC 02 Working Capital Finance Investments 0 0.0125 0(16) Federal Guaranteed Low Income Housing Tax Credits 0 0.0014 0(17) Federal Non-Guaranteed Low Income Housing Tax Credits 0 0.0260 0(18) State Guaranteed Low Income Housing Tax Credits 0 0.0014 0(19) State Non-Guaranteed Low Income Housing Tax Credits 0 0.0260 0(20) All Other Low Income Housing Tax Credits 0 0.1500 0(21) SUBTOTAL - FIXED INCOME 0 0


PR011

Attachment F

59

(1) (2) (3) (4)






(1) NAIC 01 - U.S. Government - Direct and Guaranteed and NAIC U.S. Direct Obligations/Full Faith and Credit Exempt Money Market Funds List

Company Records0 0 0 0.000 0

(2) NAIC Designation Category 1.A Company Records 0 0(3) NAIC Designation Category 1.B Company Records 0 0(4) NAIC Designation Category 1.C Company Records 0 0(5) NAIC Designation Category 1.D Company Records 0 0(6) NAIC Designation Category 1.E Company Records 0 0(7) NAIC Designation Category 1.F Company Records 0 0(8) NAIC Designation Category 1.G Company Records 0 0(9) Total NAIC 01 Bonds Sum of Ls (1) through (8) 0 0 0 0

(9A) Other NAIC 01 Bonds L(9) - L(1) 0 0 0 0.003(10) NAIC Designation Category 2.A Company Records 0 0(11) NAIC Designation Category 2.B Company Records 0 0(12) NAIC Designation Category 2.C Company Records 0 0(13) Total NAIC 02 Bonds Sum of Ls (10) through (12) 0 0 0 0.010 0(14) NAIC Designation Category 3.A Company Records 0 0(15) NAIC Designation Category 3.B Company Records 0 0(16) NAIC Designation Category 3.C Company Records 0 0(17) Total NAIC 03 Bonds Sum of Ls (14) through (16) 0 0 0 0.020 0(18) NAIC Designation Category 4.A Company Records 0 0(19) NAIC Designation Category 4.B Company Records 0 0(20) NAIC Designation Category 4.C Company Records 0 0(21) Total NAIC 04 Bonds Sum of Ls (18) through (20) 0 0 0 0.045 0(22) NAIC Designation Category 5.A Company Records 0 0(23) NAIC Designation Category 5.B Company Records 0 0(24) NAIC Designation Category 5.C Company Records 0 0(25) Total NAIC 05 Bonds Sum of Ls (22) through (24) 0 0 0 0.100 0(26) Total NAIC 06 Bonds Company Records 0 0 0 0.300 0(27) Total Bonds L(9) + (13) + (17) + (21) + (25) + (26) 0 0 0


(28) NAIC 01 Unaffiliated Preferred Stock Company Records 0 0.003 0(29) NAIC 02 Unaffiliated Preferred Stock Company Records 0 0.010 0(30) NAIC 03 Unaffiliated Preferred Stock Company Records 0 0.020 0(31) NAIC 04 Unaffiliated Preferred Stock Company Records 0 0.045 0(32) NAIC 05 Unaffiliated Preferred Stock Company Records 0 0.100 0(33) NAIC 06 Unaffiliated Preferred Stock Company Records 0 0.300 0(34) Total Unaffiliated Preferred Stock Sum of Ls (28) through (33) 0 0 0 0

(35) Unaffiliated Common Stock Company Records 0 0.150 0

(36) Real Estate and Schedule BA - Other Invested Assets Company Records 0 0.200 0

(37) Other Invested Assets Company Records 0 0.200 0

(38) Mortgage Loans on Real Estate Company Records 0 0.050 0

(39) Cash, Cash Equivalents, non-government money market fund and Short-Term Investments Company Records 0 0.003 0(Not reported as Bonds above)

(40) Total L(27)+L(34)+L(35)+L(36)+L(37)+L(38)+L(39) 0 0 0 0


OFF-BALANCE SHEET COLLATERAL AND SCHEDULE DL, PART 1 ASSETS PR015

Attachment F

60


R0 - Subsidiary Insurance Companies and Misc. Other Amounts PRBC O&I Reference RBC Amount(1) Affiliated US P&C Insurers - Directly Owned PR004 L(1)C(4) 0(2) Affiliated US P&C Insurers - Indirectly Owned PR004L(4)C(4) 0(3) Affiliated US Life Insurers - Directly Owned PR004 L(2)C(4) 0(4) Affiliated US Life Insurers - Indirectly Owned PR004 L(5)C(4) 0(5) Affiliated US Health Insurer - Directly Owned PR004 L(3)C(4) 0(6) Affiliated US Health Insurer - Indirectly Owned PR004 L(6)C(4) 0(7) Affiliated Alien Insurers - Directly Owned PR004 L(8)C(4) 0(8) Affiliated Alien Insurers - Indirectly Owned PR004 L(9)C(4) 0(9) Misc Off-Balance Sheet - Non-Controlled Assets PR014 L(15) C(3) 0

(10) Misc Off-Balance Sheet - Guarantees for Affiliates PR014 L(16) C(3) 0(11) Misc Off-Balance Sheet - Contingent Liabilities PR014 L(17) C(3) 0(12) Misc Off-Balance Sheet - SSAP No.101 Par. 11A DTA PR014 L(19) C(3) 0(13) Misc Off-Balance Sheet - SSAP No.101 Par. 11B DTA PR014 L(20) C(3) 0

(14) Total R0 L(1)+L(2)+L(3)+L(4)+L(5)+L(6)+L(7)+L(8)+L(9)+L(10)+L(11)+L(12)+L(13) 0

R1 - Asset Risk - Fixed Income

(15) NAIC 01 U.S. Government Agency Bonds PR006 L(2A)C(2) 0

(16) Bonds Subject to Size Factor PR006 L(27)C(2) 0

(17) Bond Size Factor RBC PR006 L(30)C(2) 0

(18) Off-balance Sheet Collateral & Sch DL, PT1 - Total Bonds PR015 L(27)C(4) 0

(19) Off-balance Sheet Collateral & Sch DL, PT1 - Cash, Cash Equi, non-govt MMF & S.T. Invest and Mort Loans on Real Est. PR015 L(38)+(39)C(4) 0

(20) Other Long- Term Assets - Mortgage Loans, LIHTC & WCFI PR008 L(10)+L(13)+L(14)+L(15)+L(16)+L(17)+L(20)+L(21)C(2) 0

(21) Misc Assets - Collateral Loans PR009 L(13)C(2) 0

(22) Misc Assets - Cash PR009 L(3)C(2) 0

(23) Misc Assets - Cash Equivalents PR009 L(7)C(2) 0

(24) Misc Assets - Other Short-Term Investments PR009 L(10)C(2)(25) Replication -Synthetic Asset: One Half PR010 L(9999999)C(7) (26) Asset Concentration RBC - Fixed Income PR011 L(21)C(3) Grand Total Page 0

L(15)+L(16)+L(17)+L(18)+L(19)+L(20)+L(21)+L(22)+L(23)+L(24)(27) Total R1 L(25)+L(26) 0

PR031

Attachment F

61


62

BONDS(1) (2)

Bond Book / Adjusted RBCDesignation Category Annual Statement Source Carrying Value Factor Requirement

Long Term Bonds(1) Exempt Obligations AVR Default Component Column 1 Line 1 X 0.0000 =


(2.2) NAIC Designation Category 1.B AVR Default Component Column 1 Line 2.2 X 0.0039 =(2.3) NAIC Designation Category 1.C AVR Default Component Column 1 Line 2.3 X 0.0039 =(2.4) NAIC Designation Category 1.D AVR Default Component Column 1 Line 2.4 X 0.0039 =(2.5) NAIC Designation Category 1.E AVR Default Component Column 1 Line 2.5 X 0.0039 =(2.6) NAIC Designation Category 1.F AVR Default Component Column 1 Line 2.6 X 0.0039 =(2.7) NAIC Designation Category 1.G AVR Default Component Column 1 Line 2.7 X 0.0039 =














(7) NAIC 6 AVR Default Component Column 1 Line 7 X 0.3000 =- Schedule D Part 1A Section 1 Column 6 Line 7.6

(8) Total Long-Term Bonds Sum of Lines (1) + (2.8) + (3.4) + (4.4) + (5.4) + (6.4) + (7) (Column (1) should equal Page 2 Column 3 Line 1 + Schedule DL Part 1 Column 6 Line 7099999) - Schedule D Part 1A Section 1 Column 6 line 7.7)

LR002

Attachment G

63

Short Term Bonds(9) Exempt Obligations AVR Default Component Column 1 Line 18 X 0.0000 =

(10.1) NAIC Designation Category 1.A AVR Default Component Column 1 Line 19.1 X 0.0039 =(10.2) NAIC Designation Category 1.B AVR Default Component Column 1 Line 19.2 X 0.0039 =(10.3) NAIC Designation Category 1.C AVR Default Component Column 1 Line 19.3 X 0.0039 =(10.4) NAIC Designation Category 1.D AVR Default Component Column 1 Line 19.4 X 0.0039 =(10.5) NAIC Designation Category 1.E AVR Default Component Column 1 Line 19.5 X 0.0039 =(10.6) NAIC Designation Category 1.F AVR Default Component Column 1 Line 19.6 X 0.0039 =(10.7) NAIC Designation Category 1.G AVR Default Component Column 1 Line 19.7 X 0.0039 =










(15) NAIC 6 AVR Default Component Column 1 Line 24 X 0.3000 =

(16) Total Short-Term Bonds Sum of Lines (9) + (10.8) + (11.4) + (12.4) + (13.4) + (14.4) + (15)

(Column (1) should equal Schedule DA Part 1 Column 7 Line 8399999 + Schedule DL Part 1 Column 6 Line 8999999 + LR012 Miscellaneous Assets Column (1) Line (2.2) )

(17) Total Long-Term and Short-Term Bonds Line (8) + (16)(pre-MODCO/Funds Withheld)

(18) Credit for Hedging LR014 Hedged Asset Bond ScheduleColumn 13 Line 0399999

(19) Reduction in RBC for MODCO/Funds LR045 Modco or Funds Withheld Reinsurance Withheld Reinsurance Ceded Agreements Ceded - Bonds C-1o Column (4) Line (9999999)

(20) Increase in RBC for MODCO/Funds LR046 Modco or Funds Withheld Reinsurance Withheld Reinsurance Assumed Agreements Assumed - Bonds C-1o Column (4) Line (9999999)

(21) Total Long-Term and Short-Term Bonds Lines (17) - (18) - (19) + (20)(including MODCO/FundsWithheld and Credit for Hedging adjustments.)

(22) Non-exempt Asset NAIC 1 U.S. Schedule D Part 1 NAIC 1 Bonds and Schedule DA X 0.0039 =Government Agency Bonds Part 1 NAIC 1 Bonds, in part†

(23) Bonds Subject to Size Factor Line (21) - Line (1) - Line (9) - Line (22)

(24) Number of Issuers Company Records(25) Size Factor for Bonds(26) Bonds Subject to Size Factor after the Size Line (23) x Line (25)

Factor is Applied

(27) Total Bonds Line (22) + Line (26)

† Only investments in NAIC 1 U.S. Government agency bonds previously reported in Lines (2.8) and (10.8), net of those included on Line (19), plus the portion of Line (20) attributable to ceding companies' Lines (2.8) and (10.8) should be included on Line (22). No other NAIC 1 bonds should be included on this line. Exempt U.S. Government bonds shown on Lines (1) and (9) should not be included on Line (22). Refer to the bond section of the risk-based capital instructions for more clarification.


LR002

Attachment G

64

UNAFFILIATED PREFERRED AND COMMON STOCK(1) (2) (3) (4) (5)

Less AffiliatedBook / Adjusted Preferred Stock RBC

Annual Statement Source Carrying Value Without AVR RBC Subtotal Factor RequirementUnaffiliated Preferred Stock

(1) Preferred Stock Asset NAIC 1 AVR Default Component Column 1 Line 10 X 0.0039 =(2) Preferred Stock Asset NAIC 2 AVR Default Component Column 1 Line 11 X 0.0126 =(3) Preferred Stock Asset NAIC 3 AVR Default Component Column 1 Line 12 X 0.0446 =(4) Preferred Stock Asset NAIC 4 AVR Default Component Column 1 Line 13 X 0.0970 =(5) Preferred Stock Asset NAIC 5 AVR Default Component Column 1 Line 14 X 0.2231 =(6) Preferred Stock Asset NAIC 6 AVR Default Component Column 1 Line 15 X 0.300 =(7) Total Unaffiliated Preferred Stock Sum of Lines (1) through (6)

(pre-MODCO/Funds Withheld)(Column (1) should equal Page 2 Column 3 Line 2.1 less Asset Valuation Reserve Default Component Column 1 Line 16.)(Column (2) should equal Schedule D Summary Column 1 Line 18 less Asset Valuation Reserve Default Component Column 1 Line 16.)Hybrid Securities

(8) Hybrid Securities Asset NAIC 1 Schedule D Part 1A Section 1 Column 7 Line 7.1 X 0.0039 =(9) Hybrid Securities Asset NAIC 2 Schedule D Part 1A Section 1 Column 7 Line 7.2 X 0.0126 =

(10) Hybrid Securities Asset NAIC 3 Schedule D Part 1A Section 1 Column 7 Line 7.3 X 0.0446 =(11) Hybrid Securities Asset NAIC 4 Schedule D Part 1A Section 1 Column 7 Line 7.4 X 0.0970 =(12) Hybrid Securities Asset NAIC 5 Schedule D Part 1A Section 1 Column 7 Line 7.5 X 0.2231 =(13) Hybrid Securities Asset NAIC 6 Schedule D Part 1A Section 1 Column 7 Line 7.6 X 0.300 =(14) Total Hybrid Securities Sum of Lines (8) through (13)

(pre-MODCO/Funds Withheld)(15) Total Unaffiliated Preferred Stock Including Hybrids Line (7) + Line (14)

(pre-MODCO/Funds Withheld)(8) Reduction in RBC for MODCO/Funds Withheld

Reinsurance Ceded Agreements Company Records (enter a pre-tax amount)(9) Increase in RBC for MODCO/Funds Withheld

Reinsurance Assumed Agreements Company Records (enter a pre-tax amount)(10) Total Unaffiliated Preferred Stock and Hybrid Securities Lines (7) - (8) + (9)

(including MODCO/Funds Withheld.)Unaffiliated Common Stock

(11) Total Common Stock Schedule D Summary Column 1 Line 25(12) Less Affiliated Common Stock Schedule D Summary Column 1 Line 24(13) Less Non-Admitted Unaffiliated Common Stock Company Records

included in Line (11)(14) Less Federal Home Loan Bank Common Stock AVR Equity Component Column 1 Line 3 X 0.011 =(15) Less Unaffiliated Private Common Stock AVR Equity Component Column 1 Line 2 X 0.300 =(16) Net Other Unaffiliated Public Common Stock Lines (11) - (12) - (13) - (14) - (15) X 0.45 † =(17) Total Admitted Unaffiliated Common Stock Lines (14) + (15) + (16)

(pre-MODCO/Funds Withheld)(Column 1 should equal Schedule D Summary by Country Column 1 Line 25 less Line 24 less Line (21))

(18) Credit for Hedging LR015 Hedged Asset Common Stock ScheduleColumn 10 Line 0299999

(19) Reduction in RBC for MODCO/Funds Withheld Reinsurance Ceded Agreements Company Records (enter a pre-tax amount)

(20) Increase in RBC for MODCO/Funds Withheld Reinsurance Assumed Agreements Company Records (enter a pre-tax amount)

(21) Total Admitted Unaffiliated Common Stock Lines (17) - (18) - (19) + (20)(including MODCO/Funds Withheld and Credit for Hedging.)

† The factor for publicly traded common stock should equal 30 percent adjusted up or down by the weighted average beta for the publicly traded common stock portfolio subject to a minimum of 22.5 percent and a maximum of 45 percent in the same manner that the similar 13 percent factor for publicly traded common stock in the Asset Valuation Reserve (AVR) calculation is adjusted up or down. The rules for calculating the beta adjustment are set forth in the AVR section of the annual statement instructions.

LR005

Attachment G

65

ASSET CONCENTRATION FACTOR (1) (2) (3) (4) (5) (6)

Book / Adjusted Additional Adjustment/ RBCAsset Type Carrying Value Factor RBC Subsidiary RBC RequirementIssuer Name:

(1.1) Bond NAIC Designation Category 2.A X 0.0126 =(1.2) Bond NAIC Designation Category 2.B X 0.0126 =(1.3) Bond NAIC Designation Category 2.C X 0.0126 =(2.1) Bond NAIC Designation Category 3.A X 0.0446 =(2.2) Bond NAIC Designation Category 3.B X 0.0446 =(2.3) Bond NAIC Designation Category 3.C X 0.0446 =(3.1) Bond NAIC Designation Category 4.A X 0.0970 =(3.2) Bond NAIC Designation Category 4.B X 0.0970 =(3.3) Bond NAIC Designation Category 4.C X 0.0970 =(4.1) Bond NAIC Designation Category 5.A X 0.2231 =(4.2) Bond NAIC Designation Category 5.B X 0.2231 =(4.3) Bond NAIC Designation Category 5.C X 0.2231 =(5) Bond NAIC 6 X 0.1500 =

(6.1) Bond NAIC Designation Category 1.A † X 0.0039 =(6.2) Bond NAIC Designation Category 1.B † X 0.0039 =(6.3) Bond NAIC Designation Category 1.C † X 0.0039 =(6.4) Bond NAIC Designation Category 1.D † X 0.0039 =(6.5) Bond NAIC Designation Category 1.E † X 0.0039 =(6.6) Bond NAIC Designation Category 1.F † X 0.0039 =(6.7) Bond NAIC Designation Category 1.G † X 0.0039 =(7) Unaffiliated Preferred Stock NAIC 2 X 0.0126 =(8) Unaffiliated Preferred Stock NAIC 3 X 0.0446 =(9) Unaffiliated Preferred Stock NAIC 4 X 0.0970 =

(10) Unaffiliated Preferred Stock NAIC 5 X 0.2231 =(11) Unaffiliated Preferred Stock NAIC 6 X 0.1500 =(12) Unaffiliated Preferred Stock NAIC 1 † X 0.0039 =(13) Hybrid Securities NAIC 2 X 0.0126 =(14) Hybrid Securities NAIC 3 X 0.0446 =(15) Hybrid Securities NAIC 4 X 0.0970 =(16) Hybrid Securities NAIC 5 X 0.2231 =(17) Hybrid Securities NAIC 6 X 0.1500 =(18) Hybrid Securities NAIC 1 † X 0.0039 =(13) Collateral Loans X 0.0680 =(14) Receivable for Securities X 0.0140 =(15) Write-ins for Invested Assets X 0.0680 =(16) Premium Notes X 0.0680 =(17) Real Estate - Foreclosed(18) Real Estate - Foreclosed Encumbrances X ‡ =(19) Real Estate - Investments(20) Real Estate - Investment Encumbrances X ‡ =(21) Real Estate - Schedule BA(22) Real Estate - Schedule BA Encumbrances X ‡ =(23) Farm Mortgages - Category CM2 X 0.0175 =(24) Farm Mortgages - Category CM3 X 0.0300 =(25) Farm Mortgages - Category CM4 X 0.0500 =(26) Farm Mortgages - Category CM5 X 0.0750 =(27) Commercial Mortgages - Category CM2 X 0.0175 =(28) Commercial Mortgages - Category CM3 X 0.0300 =(29) Commercial Mortgages - Category CM4 X 0.0500 =(30) Commercial Mortgages - Category CM5 X 0.0750 =

† After the ten largest issuer exposures are chosen, any NAIC 1 bonds or preferred stocks from any of these issuers should be included. ‡ Refer to the instructions for the Asset Concentration Factor for details of this calculation.


LR010

Attachment G

66

ASSET CONCENTRATION FACTOR (CONTINUED) (2) (3) (4) (5) (6)

Book / Adjusted Additional Adjustment/ RBCAsset Type Carrying Value Factor RBC Subsidiary RBC Requirement

(31) Farm Mortgages - 90 Days Overdue(32) Farm Mortgages - 90 Days Overdue - Cumulative Writedowns X ‡ =(33) Residential Mortgages - 90 Days Overdue(34) Residential Mortgages - 90 Days Overdue - Cumulative Writedowns X ‡ =(35) Commercial Mortgages - 90 Days Overdue(36) Commercial Mortgages - 90 Days Overdue - Cumulative Writedowns X ‡ =(37) Farm Mortgages in Foreclosure(38) Farm Mortgages in Foreclosure - Cumulative Writedowns X ‡ =(39) Residential Mortgages in Foreclosure(40) Residential Mortgages in Foreclosure - Cumulative Writedowns X ‡ =(41) Commercial Mortgages in Foreclosure(42) Commercial Mortgages in Foreclosure - Cumulative Writedowns X ‡ =(43) Unaffiliated Mortgages with Covenants X ‡ =(44) Unaffiliated Mortgages - Defeased with Government Securities X 0.0090 =(45) Unaffiliated Mortgages - Primarily Senior X 0.0175 =(46) Unaffiliated Mortgages - All Other X 0.0300 =(47) Affiliated Mortgages - Category CM2 X 0.0175 =(48) Affiliated Mortgages - Category CM3 X 0.0300 =(49) Affiliated Mortgages - Category CM4 X 0.0500 =(50) Affiliated Mortgages - Category CM5 X 0.0750 =(51) Schedule BA Mortgages 90 Days Overdue(52) Schedule BA Mortgages 90 Days Overdue - Cumulative Writedowns X ‡ =(53) Schedule BA Mortgages in Process of Foreclosure(54) Schedule BA Mortgages Foreclosed - Cumulative Writedowns X ‡ =(55) Federal Guaranteed Low Income Housing Tax Credits X 0.0014 =(56) Federal Non-Guaranteed Low Income Housing Tax Credits X 0.0260 =(57) State Guaranteed Low Income Housing Tax Credits X 0.0014 =(58) State Non-Guaranteed Low Income Housing Tax Credits X 0.0260 =(59) All Other Low Income Housing Tax Credits X 0.1500 =(60) NAIC 02 Working Capital Finance Notes X 0.0163 =(61) Other Schedule BA Assets X 0.1500 =

(62) Total of Issuer = Sum of Lines (1) through (61)

NOTE: Ten issuer sections and a grand total page will be available on the filing software. The grand total page is calculated as the sum of issuers 1-10 by asset type.

‡ Refer to the instructions for the Asset Concentration Factor for details of this calculation.


LR010

Attachment G

67

HEDGED ASSET BOND SCHEDULE

As of:

Type of (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)Hedged

Asset

Description Notional Amount

Relationship Type of the

Hedging Instrument and Hedged Asset

Maturity Date Description CUSIP

Book / Adjusted Carrying Value

Overlap with Insurer's Bond

PortfolioMaturity

Date

NAIC Designation

CategoryRBC

FactorGross RBC

Charge

RBC Credit for Hedging

InstrumentsNet RBC Charge

Bonds † † † † † † ‡ † † § * £ **(0100001)(0100002)(0100003)(0100004)(0100005)(0100006)(0100007)(0100008)(0100009)(0100010)(0100011)(0100012)(0100013)(0100014)(0100015)(0100016)(0100017)(0100018)(0100019)(0100020)(0100021)(0100022)(0100023)(0100024)(0100025)(0100026)(0100027)(0100028)(0100029)(0100030)

(0199999) Subtotal - NAIC 1 Through 5 Bonds xxxxx xxxxx Subtotal xxxxx xxxxx xxxxx xxxxx(0299999) Subtotal - NAIC 6 Bonds xxxxx xxxxx Subtotal xxxxx xxxxx xxxxx xxxxx(0399999) Total xxxxx xxxxx Total xxxxx xxxxx xxxxx xxxxx

Note: For the intermediate category of hedging, we recommend that the risk mitigation and resulting RBC credit be determined as if each specific security common to both the index/basket hedge and theportfolio is a basic hedge with the entire basic hedge methodology applied to each matching name. This includes the application of the maturity mismatch formula and the maximum RBC credit of 94% of the C-1 asset charge for fixed income hedges.

† Columns are derived from Investment schedules.‡ The portion of Column (2) Notional Amount of the Hedging Instrument that hedges Column (7) Book / Adjusted Carrying Value. This amount cannot exceed Column (7) Book / Adjusted Carrying Value.§ Factor based on Column (10) NAIC Designation and NAIC C-1 RBC factors table. * Column (7) Book Adjusted Carrying Value multiplied by Column (11) RBC Factor.£ Column (13) is calculated according to the risk-based capital instructions.

** Column (12) Gross RBC Charge minus Column (13) RBC Credit for Hedging Instruments.

Denotes manual entry items that do not come directly from the annual statement.

Hedging Instruments Hedged Asset - Bonds RBC Credit

LR014

Attachment G

68

OFF-BALANCE SHEET COLLATERAL (Including any Schedule DL, Part 1 Assets not Included in the Asset Valuation Reserve)

(1) (2) (3)Book / Adjusted RBC

Annual Statement Source Carrying Value Factor RequirementFixed Income - Bonds

(1) Exempt Obligations Company Records X 0.000 =(2.1) NAIC Designation Category 1.A Company Records X 0.0039 =(2.2) NAIC Designation Category 1.B Company Records X 0.0039 =(2.3) NAIC Designation Category 1.C Company Records X 0.0039 =(2.4) NAIC Designation Category 1.D Company Records X 0.0039 =(2.5) NAIC Designation Category 1.E Company Records X 0.0039 =(2.6) NAIC Designation Category 1.F Company Records X 0.0039 =(2.7) NAIC Designation Category 1.G Company Records X 0.0039 =










(7) NAIC 6 Company Records X 0.300 =

(8) Total Bonds Sum of Lines (1) + (2.8) + (3.4) + (4.4) + (5.4) + (6.4) + (7)

Fixed Income - Preferred Stock(9) Asset NAIC 1 Company Records X 0.0039 =

(10) Asset NAIC 2 Company Records X 0.0126 =(11) Asset NAIC 3 Company Records X 0.0446 =(12) Asset NAIC 4 Company Records X 0.0970 =(13) Asset NAIC 5 Company Records X 0.2231 =(14) Asset NAIC 6 Company Records X 0.300 =

(15) Total Preferred Stock Sum of Lines (9) through (14)

(16) Common Stock Company Records X 0.450 † =

(17) Schedule BA - Other Invested Assets Company Records X 0.300 =

(18) Other Invested Assets Company Records X 0.300 =

(19) Total Off-Balance Sheet Collateral Lines (8) + (15) + (16) + (17) + (18)

† The factor for common stock can vary depending on the type of stock. The factor would be subject to a minimum of 22.5 percent and a maximum of 45 percent.


LR018

Attachment G

69

CALCULATION OF TAX EFFECT FOR LIFE and FRATERNAL RISK-BASED CAPITAL


ASSET RISKSBonds






(006) Long-term Bonds – NAIC 6 LR002 Bonds Column (2) Line (7) + LR018 Off-Balance Sheet Collateral X 0.2100 =Column (3) Line (7)

(007) Short-term Bonds – NAIC 1 LR002 Bonds Column (2) Line (10.8) X 0.1575 =(008) Short-term Bonds – NAIC 2 LR002 Bonds Column (2) Line (11.4) X 0.1575 =(009) Short-term Bonds – NAIC 3 LR002 Bonds Column (2) Line (12.4) X 0.1575 =(010) Short-term Bonds – NAIC 4 LR002 Bonds Column (2) Line (13.4) X 0.1575 =(011) Short-term Bonds – NAIC 5 LR002 Bonds Column (2) Line (14.4) X 0.1575 =(012) Short-term Bonds – NAIC 6 LR002 Bonds Column (2) Line (15) X 0.2100 =(013) Credit for Hedging - NAIC 1 Through 5 Bonds LR014 Hedged Asset Bond Schedule Column (13) Line (0199999) X 0.1575 = †(014) Credit for Hedging - NAIC 6 Bonds LR014 Hedged Asset Bond Schedule Column (13) Line (0299999) X 0.2100 = †(015) Bond Reduction - Reinsurance LR002 Bonds Column (2) Line (19) X 0.2100 = †(016) Bond Increase - Reinsurance LR002 Bonds Column (2) Line (20) X 0.2100 =(017) Non-Exempt NAIC 1 U.S. Government Agency LR002 Bonds Column (2) Line (22) X 0.1575 =(018) Bonds Size Factor LR002 Bonds Column (2) Line (26) - LR002 Bonds Column (2) Line (21) X 0.1575 =

Mortgages

In Good Standing(019) Residential Mortgages - Insured LR004 Mortgages Column (6) Line (1) X 0.1575 =(020) Residential Mortgages - Other LR004 Mortgages Column (6) Line (2) X 0.1575 =(021) Commercial Mortgages - Insured LR004 Mortgages Column (6) Line (3) X 0.1575 =(022) Total Commercial Mortgages - All Other LR004 Mortgages Column (6) Line (9) X 0.1575 =(023) Total Farm Mortgages LR004 Mortgages Column (6) Line (15) X 0.1575 =

90 Days Overdue(024) Farm Mortgages LR004 Mortgages Column (6) Line (16) X 0.1575 =(025) Residential Mortgages - Insured LR004 Mortgages Column (6) Line (17) X 0.1575 =(026) Residential Mortgages - Other LR004 Mortgages Column (6) Line (18) X 0.1575 =(027) Commercial Mortgages - Insured LR004 Mortgages Column (6) Line (19) X 0.1575 =(028) Commercial Mortgages - Other LR004 Mortgages Column (6) Line (20) X 0.1575 =

In Process of Foreclosure(029) Farm Mortgages LR004 Mortgages Column (6) Line (21) X 0.1575 =



LR030

Attachment G

70



(030) Residential Mortgages - Insured LR004 Mortgages Column (6) Line (22) X 0.1575 =(031) Residential Mortgages - Other LR004 Mortgages Column (6) Line (23) X 0.1575 =(032) Commercial Mortgages - Insured LR004 Mortgages Column (6) Line (24) X 0.1575 =(033) Commercial Mortgages - Other LR004 Mortgages Column (6) Line (25) X 0.1575 =(034) Due & Unpaid Taxes Mortgages LR004 Mortgages Column (6) Line (26) X 0.1575 =(035) Due & Unpaid Taxes - Foreclosures LR004 Mortgages Column (6) Line (27) X 0.1575 =(036) Mortgage Reduction - Reinsurance LR004 Mortgages Column (6) Line (29) X 0.2100 = †(037) Mortgage Increase - Reinsurance LR004 Mortgages Column (6) Line (30) X 0.2100 =

Preferred Stock and Hybrid Securities (038) Unaffiliated Preferred Stock and Hybrids NAIC 1 LR005 Unaffiliated Preferred and Common Stock Column (5) Line (1) + Line (8) X 0.1575 =






+ LR018 Off-Balance Sheet Collateral Column (3) Line (14)(044) Preferred Stock Reduction-Reinsurance LR005 Unaffiliated Preferred and Common Stock Column (5) Line (8) X 0.2100 = †(045) Preferred Stock Increase-Reinsurance LR005 Unaffiliated Preferred and Common Stock Column (5) Line (9) X 0.2100 =

Separate Accounts(046) Guaranteed Index LR006 Separate Accounts Column (3) Line (1) X 0.1575 =(047) Nonindex-Book Reserve LR006 Separate Accounts Column (3) Line (2) X 0.1575 =(048) Separate Accounts Nonindex-Market Reserve LR006 Separate Accounts Column (3) Line (3) X 0.1575 =(049) Separate Accounts Reduction-Reinsurance LR006 Separate Accounts Column (3) Line (5) X 0.2100 = †(050) Separate Accounts Increase-Reinsurance LR006 Separate Accounts Column (3) Line (6) X 0.2100 =(051) Synthetic GICs LR006 Separate Accounts Column (3) Line (8) X 0.1575 =(052) Separate Account Surplus LR006 Separate Accounts Column (3) Line (13) X 0.1575 =

Real Estate(053) Company Occupied Real Estate LR007 Real Estate Column (3) Line (3) X 0.2100 =(054) Foreclosed Real Estate LR007 Real Estate Column (3) Line (6) X 0.2100 =(055) Investment Real Estate LR007 Real Estate Column (3) Line (9) X 0.2100 =(056) Real Estate Reduction - Reinsurance LR007 Real Estate Column (3) Line (11) X 0.2100 = †(057) Real Estate Increase - Reinsurance LR007 Real Estate Column (3) Line (12) X 0.2100 =

Schedule BA(058) Sch BA Real Estate Excluding Low Income LR007 Real Estate Column (3) Line (16) X 0.2100 =

Housing Tax Credits(059) Guaranteed Low Income Housing Tax Credits LR007 Real Estate Column (3) Line (17) + Line (19) X 0.0000 =(060) Non-Guaranteed and All Other Low Income Housing Tax Credits LR007 Real Estate Column (3) Line (18) + Line (20) + Line (21) X 0.0000 =(061) Sch BA Real Estate Reduction - Reinsurance LR007 Real Estate Column (3) Line (23) X 0.2100 = †(062) Sch BA Real Estate Increase - Reinsurance LR007 Real Estate Column (3) Line (24) X 0.2100 =



LR030

Attachment G

71



(063) Sch BA Bond NAIC 1 LR008 Other Long-Term Assets Column (5) Line (2) X 0.1575 =(064) Sch BA Bond NAIC 2 LR008 Other Long-Term Assets Column (5) Line (3) X 0.1575 =(065) Sch BA Bond NAIC 3 LR008 Other Long-Term Assets Column (5) Line (4) X 0.1575 =(066) Sch BA Bond NAIC 4 LR008 Other Long-Term Assets Column (5) Line (5) X 0.1575 =(067) Sch BA Bond NAIC 5 LR008 Other Long-Term Assets Column (5) Line (6) X 0.1575 =(068) Sch BA Bond NAIC 6 LR008 Other Long-Term Assets Column (5) Line (7) X 0.2100 =(069) BA Bond Reduction - Reinsurance LR008 Other Long-Term Assets Column (5) Line (9) X 0.2100 = †(070) BA Bond Increase - Reinsurance LR008 Other Long-Term Assets Column (5) Line (10) X 0.2100 =(071) BA Preferred Stock NAIC 1 LR008 Other Long-Term Assets Column (5) Line (12.3) X 0.1575 =(072) BA Preferred Stock NAIC 2 LR008 Other Long-Term Assets Column (5) Line (13) X 0.1575 =(073) BA Preferred Stock NAIC 3 LR008 Other Long-Term Assets Column (5) Line (14) X 0.1575 =(074) BA Preferred Stock NAIC 4 LR008 Other Long-Term Assets Column (5) Line (15) X 0.1575 =(075) BA Preferred Stock NAIC 5 LR008 Other Long-Term Assets Column (5) Line (16) X 0.1575 =(076) BA Preferred Stock NAIC 6 LR008 Other Long-Term Assets Column (5) Line (17) X 0.2100 =(077) BA Preferred Stock Reduction-Reinsurance LR008 Other Long-Term Assets Column (5) Line (19) X 0.2100 = †(078) BA Preferred Stock Increase - Reinsurance LR008 Other Long-Term Assets Column (5) Line (20) X 0.2100 =(079) Rated Surplus Notes LR008 Other Long-Term Assets Column (5) Line (31) X 0.1575 =(080) Rated Capital Notes LR008 Other Long-Term Assets Column (5) Line (41) X 0.1575 =(081) BA Common Stock Affiliated LR008 Other Long-Term Assets Column (5) Line (48.3) X 0.2100 =(082) BA Collateral Loans LR008 Other Long-Term Assets Column (5) Line (50) X 0.1575 =(083) Other BA Assets LR008 Other Long-Term Assets Column (5) Line (52.3) + LR018 Off-Balance X 0.2100 =

Sheet Collateral Column (3) Line (17) + Line (18)(084) Other BA Assets Reduction-Reinsurance LR008 Other Long-Term Assets Column (5) Line (54) X 0.2100 = †(085) Other BA Assets Increase - Reinsurance LR008 Other Long-Term Assets Column (5) Line (55) X 0.2100 =(086) BA Mortgages - In Good Standing LR009 Schedule BA Mortgages Column (6) Line (11) X 0.1575 =(087) BA Mortgages - 90 Days Overdue LR009 Schedule BA Mortgages Column (6) Line (15) X 0.1575 =(088) BA Mortgages - In Process of Foreclosure LR009 Schedule BA Mortgages Column (6) Line (19) X 0.1575 =(089) Reduction - Reinsurance LR009 Schedule BA Mortgages Column (6) Line (21) X 0.2100 = †(090) Increase - Reinsurance LR009 Schedule BA Mortgages Column (6) Line (22) X 0.2100 =

Miscellaneous(091) Asset Concentration Factor LR010 Asset Concentration Factor Column (6) Line (62) Grand Total Page X 0.1575 =(092) Miscellaneous Assets LR012 Miscellaneous Assets Column (2) Line (7) X 0.1575 =(093) Derivatives - Collateral and Exchange Traded LR012 Miscellaneous Assets Column (2) Lines (8) + (9) + (10) X 0.1575 =(094) Derivatives NAIC 1 LR012 Miscellaneous Assets Column (2) Line (11) X 0.1575 =(095) Derivatives NAIC 2 LR012 Miscellaneous Assets Column (2) Line (12) X 0.1575 =(096) Derivatives NAIC 3 LR012 Miscellaneous Assets Column (2) Line (13) X 0.1575 =(097) Derivatives NAIC 4 LR012 Miscellaneous Assets Column (2) Line (14) X 0.1575 =(098) Derivatives NAIC 5 LR012 Miscellaneous Assets Column (2) Line (15) X 0.1575 =(099) Derivatives NAIC 6 LR012 Miscellaneous Assets Column (2) Line (16) X 0.2100 =(100) Miscellaneous Assets Reduction-Reinsurance LR012 Miscellaneous Assets Column (2) Line (19) X 0.2100 = †(101) Miscellaneous Assets Increase-Reinsurance LR012 Miscellaneous Assets Column (2) Line (20) X 0.2100 =



LR030

Attachment G

72



(102) Replications LR013 Replication (Synthetic Asset) Transactions and Mandatory X 0.1575 =Convertible Securities Column (7) Line (9999999)

(103) Reinsurance LR016 Reinsurance Column (4) Line (17) X 0.2100 =(104) Investment Affiliates LR042 Summary for Affiliated Investments Column (4) Line (6) X 0.2100 =(105) Investment in Parent LR042 Summary for Affiliated Investments Column (4) Line (10) X 0.2100 =(106) Other Affiliate: Property and Casualty Insurers LR042 Summary for Affiliated Investments Column (4) Line (11) X 0.2100 =

not Subject to Risk-Based Capital(107) Other Affiliate: Life Insurers not Subject to LR042 Summary for Affiliated Investments Column (4) Line (12) X 0.2100 =

Risk-Based Capital(108) Publicly Traded Insurance Affiliates LR042 Summary for Affiliated Investments Column (4) Line (14) X 0.2100 =(109) Subtotal for C-1o Assets Sum of Lines (001) through (108), Recognizing the Deduction of Lines (013),

(014), (015), (036), (044), (049), (056), (061), (069), (077), (084), (089) and (100) C-0 Affiliated Common Stock

(110) Off-Balance Sheet and Other Items LR017 Off-Balance Sheet and Other Items Column (5) Line (27) X 0.1575 =(111) Off-Balance Sheet Items Reduction - Reinsurance LR017 Off-Balance Sheet and Other Items Column (5) Line (28) X 0.2100 = †(112) Off-Balance Sheet Items Increase - Reinsurance LR017 Off-Balance Sheet and Other Items Column (5) Line (29) X 0.2100 =(113) Affiliated US Property - Casualty Insurers LR042 Summary for Affiliated Investments Column (4) Line (1) X 0.2100 =

Directly Owned(114) Affiliated US Life Insurers Directly Owned LR042 Summary for Affiliated Investments Column (4) Line (2) X 0.2100 =(115) Affiliated US Health Insurers Directly and LR042 Summary for Affiliated Investments Column (4) Line (3) X 0.2100 =

Indirectly Owned(116) Affiliated US Property - Casualty Insurers LR042 Summary for Affiliated Investments Column (4) Line (4) X 0.2100 =

Indirectly Owned(117) Affiliated US Life Insurers Indirectly Owned LR042 Summary for Affiliated Investments Column (4) Line (5) X 0.2100 =(118) Affiliated Alien Life Insurers - Canadian LR042 Summary for Affiliated Investments Column (4) Line (8) X 0.2100 =(119) Affiliated Alien Life Insurers - All Others LR042 Summary for Affiliated Investments Column (4) Line (9) X 0.0000 =(120) Subtotal for C-0 Affiliated Common Stock Lines (110)-(111)+(112)+(113)+(114)+(115)+(116)+(117)+(118)+(119)

Common Stock(121) Unaffiliated Common Stock LR005 Unaffiliated Preferred and Common Stock Column (5) Line (17) + X 0.2100 =

LR018 Off-Balance Sheet Collateral Column (3) Line (16)(122) Credit for Hedging - Common Stock LR015 Hedged Asset Common Stock Schedule Column (10) Line (0299999) X 0.2100 = †(123) Stock Reduction - Reinsurance LR005 Unaffiliated Preferred and Common Stock Column (5) Line (19) X 0.2100 = †(124) Stock Increase - Reinsurance LR005 Unaffiliated Preferred and Common Stock Column (5) Line (20) X 0.2100 =(125) BA Common Stock Unaffiliated LR008 Other Long-Term Assets Column (5) Line (47) X 0.2100 =(126) BA Common Stock Affiliated - C-1cs LR008 Other Long-Term Assets Column (5) Line (49.2) X 0.2100 =(127) Common Stock Concentration Factor LR011 Common Stock Concentration Factor Column (6) Line (6) X 0.2100 =(128) NAIC 01 Working Capital Finance Notes LR008 Other Long-Term Assets Column (5) Line (51.1) X 0.1575 =(129) NAIC 02 Working Capital Finance Notes LR008 Other Long-Term Assets Column (5) Line (51.2) X 0.1575 =(130) Affiliated Preferred Stock and Common Stock - LR042 Summary for Affiliated Investments Column (4) Line (7) X 0.2100 =

Holding Company in Excess of Indirect Subs(131) Affiliated Preferred Stock and Common Stock - LR042 Summary for Affiliated Investments Column (4) Line (13) X 0.2100 =

All Other(132) Total for C-1cs Assets Lines (121)-(122)-(123)+(124)+(125)+(126)+(127)+(128)+(129)+(130)+(131)

Insurance Risk(133) Disability Income Premium LR019 Health Premiums Column (2) Lines (21) through (27) X 0.2100 =



LR030

Attachment G

73



(134) Long-Term Care LR019 Health Premiums Column (2) Line (28) + LR023 Long-Term Care X 0.2100 =Column (4) Line (7)

(135) Life Insurance C-2 Risk LR025 Life Insurance Column (2) Line (8) X 0.2100 =(136) Group Insurance C-2 Risk LR025 Life Insurance Column (2) Lines (20) and (21) X 0.2100 =(137) Disability and Long-Term Care Health LR024 Health Claim Reserves Column (4) Line (9) + Line (15) X 0.2100 =

Claim Reserves(138) Premium Stabilization Credit LR026 Premium Stabilization Reserves Column (2) Line (10) X 0.0000 =(139) Total C-2 Risk Lines (133) + (134) + (135) + (136) + (137) + (138)

(140) Interest Rate Risk LR027 Interest Rate Risk Column (3) Line (36) X 0.2100 =(141) Health Credit Risk LR028 Health Credit Risk Column (2) Line (7) X 0.0000 =(142) Market Risk LR027 Interest Rate Risk Column (3) Line (37) X 0.2100 =(143) Business Risk LR029 Business Risk Column (2) Line (40) X 0.2100 =(144) Health Administrative Expenses LR029 Business Risk Column (2) Line (57) X 0.0000 =

(145) Total Tax Effect Lines (109) + (120) + (132) + (139) + (140) + (141) + (142) + (143) + (144)

LR030

Attachment G

74

CALCULATION OF AUTHORIZED CONTROL LEVEL RISK-BASED CAPITAL (1)


Asset Risk - Affiliated Amounts (C-0)(1) Affiliated US Property-Casualty Insurers Directly Owned LR042 Summary for Affiliated Investments Column (4) Line (1)(2) Affiliated US Life Insurers Directly Owned LR042 Summary for Affiliated Investments Column (4) Line (2)(3) Affiliated US Health Insurers Directly and Indirectly Owned LR042 Summary for Affiliated Investments Column (4) Line (3)(4) Affiliated US Property-Casualty Insurers Indirectly Owned LR042 Summary for Affiliated Investments Column (4) Line (4)(5) Affiliated US Life Insurers Indirectly Owned LR042 Summary for Affiliated Investments Column (4) Line (5)(6) Affiliated Alien Life Insurers - Canadian LR042 Summary for Affiliated Investments Column (4) Line (8)(7) Affiliated Alien Life Insurers - All Others LR042 Summary for Affiliated Investments Column (4) Line (9)(8) Off-Balance Sheet and Other Items LR017 Off-Balance Sheet and Other Items Column (5) Line (34)(9) Total (C-0) - Pre-Tax Sum of Lines (1) through (8)

(10) (C-0) Tax Effect LR030 Calculation of Tax Effect for Life Risk-Based Capital Column (2) Line (120)(11) Net (C-0) - Post-Tax Line (9) - Line (10)

Asset Risk – Unaffiliated Common Stock and Affiliated Non-Insurance Stock (C-1cs)(12) Schedule D Unaffiliated Common Stock LR005 Unaffiliated Common Stock Column (5) Line (21) + LR018 Off-Balance Sheet

Collateral Column (3) Line (16)(13) Schedule BA Unaffiliated Common Stock LR008 Other Long-Term Assets Column (5) line (47)(14) Schedule BA Affiliated Common Stock - C-1cs LR008 Other Long-Term Assets Column (5) line (49.2)(15) Common Stock Concentration Factor LR011 Common Stock Concentration Factor Column (6) Line (6)(16) Affiliated Preferred Stock and Common Stock - Holding Company in Excess of LR042 Summary for Affiliated Investments Column (4) Line (7)

Indirect Subsidiaries(17) Affiliated Preferred Stock and Common Stock - All Other LR042 Summary for Affiliated Investments Column (4) Line (13)(18) Total (C-1cs) - Pre-Tax Sum of Lines (12) through (17)(19) (C-1cs) Tax Effect LR030 Calculation of Tax Effect for Life Risk-Based Capital Column (2) Line (132)(20) Net (C-1cs) - Post-Tax Line (18) - Line (19)

Asset Risk - All Other (C-1o)(21) Bonds after Size Factor LR002 Bonds Column (2) Line (27) + LR018 Off-Balance Sheet Collateral

Column (3) Line (8)(22) Mortgages (including past due and unpaid taxes) LR004 Mortgages Column (6) Line (31)(23) Unaffiliated Preferred Stock Including Hybrids LR005 Unaffiliated Preferred and Common Stock Column (5) Line (10) +

LR018 Off-Balance Sheet Collateral Column (3) Line (15)(24) Affiliated Preferred Stock and Common Stock - Investment Subsidiaries LR042 Summary for Affiliated Investments Column (4) Line (6)(25) Affiliated Preferred Stock and Common Stock - Parent LR042 Summary for Affiliated Investments Column (4) Line (10)(26) Affiliated Preferred Stock and Common Stock - Property and Casualty Insurers not LR042 Summary for Affiliated Investments Column (4) Line (11)

Subject to Risk-Based Capital(27) Affiliated Preferred Stock and Common Stock - Life Insurers not Subject to Risk-Based LR042 Summary for Affiliated Investments Column (4) Line (12)

Capital(28) Affiliated Preferred Stock and Common Stock - Publicly Traded Insurers Held at LR042 Summary for Affiliated Investments Column (4) Line (14)

Fair Value (excess of statement value over book value)(29) Separate Accounts with Guarantees LR006 Separate Accounts Column (3) Line (7)


Attachment G

75

CALCULATION OF AUTHORIZED CONTROL LEVEL RISK-BASED CAPITAL (CONTINUED) (1)


(30) Synthetic GIC's (C-1o) LR006 Separate Accounts Column (3) Line (8)(31) Surplus in Non-Guaranteed Separate Accounts LR006 Separate Accounts Column (3) Line (13)(32) Real Estate (gross of encumbrances) LR007 Real Estate Column (3) Line (13)(33) Schedule BA Real Estate (gross of encumbrances) LR007 Real Estate Column (3) Line (25)(34) Other Long-Term Assets LR008 Other Long-Term Assets Column (5) Line (56) + LR018 Off-Balance Sheet

Collateral Column (3) Line (17) + Line (18)(35) Schedule BA Mortgages LR009 Schedule BA Mortgages Column (6) Line (23)(36) Concentration Factor LR010 Asset Concentration Factor Column (6) Line (62) Grand Total Page(37) Miscellaneous LR012 Miscellaneous Assets Column (2) Line (21)(38) Replication Transactions and Mandatory Convertible Securities LR013 Replication (Synthetic Asset) Transactions and Mandatory

Convertible Securities Column (7) Line (9999999)(39) Reinsurance LR016 Reinsurance Column (4) Line (17)(40) Total (C-1o) - Pre-Tax Sum of Lines (21) through (39)(41) (C-1o) Tax Effect LR030 Calculation of Tax Effect for Life Risk-Based Capital Column (2) Line (109)(42) Net (C-1o) - Post-Tax Line (40) - Line (41)

Insurance Risk (C-2)(43) Individual and Industrial Life Insurance LR025 Life Insurance Column (2) Line (8)(44) Group and Credit Life Insurance and FEGI/SGLI LR025 Life Insurance Column (2) Lines (20) and (21)(45) Total Health Insurance LR024 Health Claim Reserves Column (4) Line (18)(46) Premium Stabilization Reserve Credit LR026 Premium Stabilization Reserves Column (2) Line (10)(47) Total (C-2) - Pre-Tax Sum of Lines (43) through (46)(48) (C-2) Tax Effect LR030 Calculation of Tax Effect for Life Risk-Based Capital Column (2) Line (139)(49) Net (C-2) - Post-Tax Line (47) - Line (48)

Interest Rate Risk (C-3a)(50) Total Interest Rate Risk - Pre-Tax LR027 Interest Rate Risk Column (3) Line (36)(51) (C-3a) Tax Effect LR030 Calculation of Tax Effect for Life Risk-Based Capital Column (2) Line (140)(52) Net (C-3a) - Post-Tax Line (50) - Line (51)

Health Credit Risk (C-3b)(53) Total Health Credit Risk - Pre-Tax LR028 Health Credit Risk Column (2) Line (7)(54) (C-3b) Tax Effect LR030 Calculation of Tax Effect for Life Risk-Based Capital Column (2) Line (141)(55) Net (C-3b) - Post-Tax Line (53) - Line (54)

Market Risk (C-3c)(56) Total Market Risk - Pre-Tax LR027 Interest Rate Risk Column (3) Line (37)(57) (C-3c) Tax Effect LR030 Calculation of Tax Effect for Life Risk-Based Capital Column (2) Line (142)(58) Net (C-3c) - Post-Tax Line (56) - Line (57)


Attachment G

76



Business Risk (C-4a)(59) Premium Component LR029 Business Risk Column (2) Lines (12) + (24) + (36)(60) Liability Component LR029 Business Risk Column (2) Line (39)(61) Subtotal Business Risk (C-4a) - Pre-Tax Lines (59) + (60) (62) (C-4a) Tax Effect LR030 Calculation of Tax Effect for Life Risk-Based Capital Column (2) Line (143)(63) Net (C-4a) - Post-Tax Line (61) - Line (62)

Business Risk (C-4b)(64) Health Administrative Expense Component of Business Risk (C-4b) - Pre-Tax LR029 Business Risk Column (2) Line (57)(65) (C-4b) Tax Effect LR030 Calculation of Tax Effect for Life Risk-Based Capital Column (2) Line (144)(66) Net (C-4b) - Post-Tax Line (64) - Line (65)

Total Risk-Based Capital After Covariance Before Basic Operational Risk(67) C-0 + C-4a + Square Root of [(C-1o + C-3a)² + (C-1cs + C-3c)² + (C-2)² + (C-3b)² REPORT AMOUNT ON PARENT COMPANY'S RBC IF APPLICABLE

+ (C-4b)²] L(11)+L(63) + Square Root of [(L(42) + L(52))² + (L(20) + L(58))² + L(49)² + L(55)² + L(66)²]

(68) Gross Basic Operational Risk 0.03 x L(67)(69) C-4a of U.S. Life Insurance Subsidiaries Company Records(70) Net Basic Operational Risk Line (68) - (Line (63) + Line (69)) (Not less than zero)

(71) Primary Security Shortfall Calculated in Accordance With Actuarial Guideline XLVIII LR036 XXX/AXXX Reinsurance Primary Security Shortfall by Cession Column (7) Line (9999999)Multiplied by 2 Multiplied by 2

(72) Total Risk-Based Capital After Covariance (Including Basic Operational Risk and Primary Security Shortfall multiplied by 2) Line (67) + Line (70) + Line (71)

Authorized Control Level Risk-Based Capital (After Covariance Adjustment and Shortfall)(73) Total Risk-Based Capital After Covariance Times Fifty Percent Line (72) x 0.50

Tax Sensitivity Test(74) Tax Sensitivity Test: Total Risk-Based Capital After Covariance L(9)+L(61) + Square Root of [(L(40) + L(50))² + (L(18) + L(56))² + L(47)² + L(53)²

+ L(64)²](75) Tax Sensitivity Test: Authorized Control Level Risk-Based Capital Line (74) x 0.50

Attachment G

77

1 2 3 4

Book / Balance for 5 6 7 8 9 10

Line NAIC Adjusted Reclassify Add AVR Reserve Amount

Num- Desig- Carrying Related Party Third Party Calculations Amount (Cols. Amount

ber nation Description Value Encumbrances Encumbrances (Cols. 1+2+3) Factor (Cols. 4x5) Factor 4x7) Factor (Cols. 4x9)

LONG-TERM BONDS

1 Exempt Obligations XXX XXX 0.0000 0.0000 0.0000








2.8 Subtotal NAIC 1




3.4 Subtotal NAIC 2




4.4 Subtotal NAIC 3




5.4 Subtotal NAIC 4




6.4 Subtotal NAIC 5

7 6 NAIC 68 Total Unrated Multi-class Securities Acquired by Conversion

9 Total Long-Term Bonds (Sum of Lines 1 + 2.8 + 3.4 + 4.4 + 5.4 + 6.4 + 7 + 8)

PREFERRED STOCKS

10 1 Highest Quality

11 2 High Quality

12 3 Medium Quality

13 4 Low Quality

14 5 Lower Quality

15 6 In or Near Default

16 Affiliated Life with AVR

17 Total Preferred Stocks (Sum of Lines 10 through 16)

ASSET VALUATION RESERVEBASIC CONTRIBUTION, RESERVE OBJECTIVE AND MAXIMUM RESERVE CALCULATIONS

DEFAULT COMPONENTBasic Contribution Reserve Objective Maximum Reserve


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78

SHORT - TERM BONDS

18 Exempt Obligations XXX XXX 0.0000 0.0000 0.0000

























24 6 NAIC 625 Total Short-term Bonds (Sum of Lines 19.8 + 20.4 + 21.4 + 22.4 + 23.4 + 24) XXX XXX XXX XXX XXX


Attachment G

79

investment risk-based capital (e) working group · 2020-02-21 · 1 . date: 2/21/20 . investment...

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