STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY ASSETS Current Statement Date 4 1 2 3 December 31 Net Admitted Assets Prior Year Net Assets Nonadmitted Assets (Cols. 1 - 2) Admitted Assets 1. Bonds 6,512,681,665 6,512,681,665 6,575,265,121 2. Stocks: 2.1 Preferred stocks 89,850,008 89,850,008 89,850,008 2.2 Common stocks 14,554,600 14,554,600 14,554,600 3. Mortgage loans on real estate: 3.1 First liens 418,387,914 418,387,914 441,382,128 3.2 Other than first liens 4. Real estate: 4.1 Properties occupied by the company (less $ 0 encumbrances) 61,465,300 61,465,300 61,767,493 4.2 Properties held for the production of income (less $ 0 encumbrances) 9,969,606 9,969,606 10,069,793 4.3 Properties held for sale (less $ encumbrances) 5. Cash ($ (3,894,348) ), cash equivalents ($ 89,217,368 ) and short-term investments ($ 0 ) 85,323,020 85,323,020 6,536,516 6. Contract loans (including $ 0 premium notes) 153,687,135 153,687,135 149,387,401 7. Derivatives 12,804,110 12,804,110 11,854,303 8. Other invested assets 119,258,216 119,258,216 134,444,340 9. Receivables for securities 100,759 100,759 735,197 10. Securities lending reinvested collateral assets 0 0 2,679,500 11. Aggregate write-ins for invested assets 12. Subtotals, cash and invested assets (Lines 1 to 11) 7,478,082,332 7,478,082,332 7,498,526,400 13. Title plants less $ charged off (for Title insurers only) 14. Investment income due and accrued 98,578,804 98,578,804 105,004,041 15. Premiums and considerations: 15.1 Uncollected premiums and agents' balances in the course of collection 64,599,342 15,839,354 48,759,989 44,038,255 15.2 Deferred premiums, agents' balances and installments booked but deferred and not yet due (including $ 0 earned but unbilled premiums) 39,133,864 39,133,864 28,922,845 15.3 Accrued retrospective premiums ($ ) and contracts subject to redetermination ($ ) 16. Reinsurance: 16.1 Amounts recoverable from reinsurers 43,533,670 43,533,670 45,461,468 16.2 Funds held by or deposited with reinsured companies 16.3 Other amounts receivable under reinsurance contracts 5,826,279 5,826,279 5,899,454 17. Amounts receivable relating to uninsured plans 10,243 10,243 11,488 18.1 Current federal and foreign income tax recoverable and interest thereon 41,776,478 41,776,478 20,336,176 18.2 Net deferred tax asset 162,411,600 92,668,905 69,742,696 70,822,512 19. Guaranty funds receivable or on deposit 9,671,471 9,671,471 10,573,072 20. Electronic data processing equipment and software 21. Furniture and equipment, including health care delivery assets ($ 0 ) 5,064,097 5,064,097 0 0 22. Net adjustment in assets and liabilities due to foreign exchange rates 23. Receivables from parent, subsidiaries and affiliates 9,561,994 9,561,994 0 0 24. Health care ($ ) and other amounts receivable 25. Aggregate write-ins for other than invested assets 206,440,760 269,226 206,171,534 204,359,001 26. Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 12 to 25) 8,164,690,933 123,403,574 8,041,287,358 8,033,954,711 27. From Separate Accounts, Segregated Accounts and Protected Cell Accounts 28. Total (Lines 26 and 27) 8,164,690,933 123,403,574 8,041,287,358 8,033,954,711 DETAILS OF WRITE-INS 1101. 1102. 1103. 1198. Summary of remaining write-ins for Line 11 from overflow page 1199. Totals (Lines 1101 through 1103 plus 1198)(Line 11 above) 2501. Corporate owned life insurance 196,642,573 196,642,573 193,387,642 2502. Other miscellaneous assets 754,767 269,226 485,541 242,999 2503. State premium tax credits 5,940,059 5,940,059 6,944,001 2598. Summary of remaining write-ins for Line 25 from overflow page 3,103,361 3,103,361 3,784,360 2599. Totals (Lines 2501 through 2503 plus 2598)(Line 25 above) 206,440,760 269,226 206,171,534 204,359,001
2 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY LIABILITIES, SURPLUS AND OTHER FUNDS 1 2 Current December 31 Statement Date Prior Year 1. Aggregate reserve for life contracts $ 2,185,395,183 less $ 0 included in Line 6.3 (including $ 1,451,118 Modco Reserve) 2,185,395,183 2,156,283,556 2. Aggregate reserve for accident and health contracts (including $ 2,668,844,262 Modco Reserve) 4,646,075,510 4,712,737,625 3. Liability for deposit-type contracts (including $ 0 Modco Reserve) 84,877,081 111,506,384 4. Contract claims: 4.1 Life 19,863,599 23,215,576 4.2 Accident and health 61,142,853 53,782,540 5. Policyholders’ dividends $ and coupons $ due and unpaid 6. Provision for policyholders’ dividends and coupons payable in following calendar year - estimated amounts: 6.1 Dividends apportioned for payment (including $ Modco) 6.2 Dividends not yet apportioned (including $ Modco) 6.3 Coupons and similar benefits (including $ Modco) 7. Amount provisionally held for deferred dividend policies not included in Line 6 8. Premiums and annuity considerations for life and accident and health contracts received in advance less $ 7,500,382 discount; including $ 0 accident and health premiums 8,910,874 11,285,500 9. Contract liabilities not included elsewhere: 9.1 Surrender values on canceled contracts 9.2 Provision for experience rating refunds, including the liability of $ 533,149 accident and health experience rating refunds of which $ 0 is for medical loss ratio rebate per the Public Health Service Act 1,534,673 1,857,869 9.3 Other amounts payable on reinsurance, including $ 0 assumed and $ 39,530,209 ceded 39,530,209 45,519,794 9.4 Interest Maintenance Reserve 37,056,761 39,210,342 10. Commissions to agents due or accrued-life and annuity contracts $ 2,646,163 , accident and health $ 11,848,455 and deposit-type contract funds $ 0 14,494,618 16,665,477 11. Commissions and expense allowances payable on reinsurance assumed 12. General expenses due or accrued 1,312,969 917,226 13. Transfers to Separate Accounts due or accrued (net) (including $ accrued for expense allowances recognized in reserves, net of reinsured allowances) 14. Taxes, licenses and fees due or accrued, excluding federal income taxes 7,884,409 8,514,744 15.1 Current federal and foreign income taxes, including $ on realized capital gains (losses) 15.2 Net deferred tax liability 16. Unearned investment income 17. Amounts withheld or retained by company as agent or trustee 232,610 8,860 18. Amounts held for agents' account, including $ agents' credit balances 19. Remittances and items not allocated 38,103,175 41,033,617 20. Net adjustment in assets and liabilities due to foreign exchange rates 21. Liability for benefits for employees and agents if not included above 22. Borrowed money $ 0 and interest thereon $ 0 0 3,500,461 23. Dividends to stockholders declared and unpaid 24. Miscellaneous liabilities: 24.01 Asset valuation reserve 78,225,296 80,839,946 24.02 Reinsurance in unauthorized and certified ($ 0 ) companies 1,301,381 75,651 24.03 Funds held under reinsurance treaties with unauthorized and certified ($ ) reinsurers 24.04 Payable to parent, subsidiaries and affiliates 50,816,348 46,300,845 24.05 Drafts outstanding 24.06 Liability for amounts held under uninsured plans 24.07 Funds held under coinsurance 24.08 Derivatives 13,376,438 17,564,445 24.09 Payable for securities 0 6,041 24.10 Payable for securities lending 0 2,679,500 24.11 Capital notes $ and interest thereon $ 25. Aggregate write-ins for liabilities 54,784,598 55,415,142 26. Total liabilities excluding Separate Accounts business (Lines 1 to 25) 7,344,918,585 7,428,921,139 27. From Separate Accounts Statement 28. Total liabilities (Lines 26 and 27) 7,344,918,585 7,428,921,139 29. Common capital stock 43,501,205 43,501,205 30. Preferred capital stock 31. Aggregate write-ins for other than special surplus funds 17,663,155 21,996,172 32. Surplus notes 33. Gross paid in and contributed surplus 271,208,526 271,208,526 34. Aggregate write-ins for special surplus funds 35. Unassigned funds (surplus) 363,995,888 268,327,669 36. Less treasury stock, at cost: 36.1 shares common (value included in Line 29 $ ) 36.2 shares preferred (value included in Line 30 $ ) 37. Surplus (Total Lines 31+32+33+34+35-36) (including $ in Separate Accounts Statement) 652,867,569 561,532,367 38. Totals of Lines 29, 30 and 37 696,368,774 605,033,572 39. Totals of Lines 28 and 38 (Page 2, Line 28, Col. 3) 8,041,287,358 8,033,954,711 DETAILS OF WRITE-INS 2501. Pensioner life reserve 16,032,091 16,119,430 2502. Missing claimants liability 20,378,354 20,295,829 2503. Unfunded commitments 8,015,140 9,091,210 2598. Summary of remaining write-ins for Line 25 from overflow page 10,359,013 9,908,673 2599. Totals (Lines 2501 through 2503 plus 2598)(Line 25 above) 54,784,598 55,415,142 3101. Deferred gains on reinsurance transactions 17,663,155 21,996,172 3102. 3103. 3198. Summary of remaining write-ins for Line 31 from overflow page 3199. Totals (Lines 3101 through 3103 plus 3198)(Line 31 above) 17,663,155 21,996,172 3401. 3402. 3403. 3498. Summary of remaining write-ins for Line 34 from overflow page 3499. Totals (Lines 3401 through 3403 plus 3498)(Line 34 above)
3 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SUMMARY OF OPERATIONS 1 2 3 Current Year Prior Year Prior Year Ended To Date To Date December 31 1. Premiums and annuity considerations for life and accident and health contracts 609,096,681 600,165,649 769,337,901 2. Considerations for supplementary contracts with life contingencies 3. Net investment income 313,395,410 326,978,731 435,265,303 4. Amortization of Interest Maintenance Reserve (IMR) 4,175,543 5,342,390 7,148,126 5. Separate Accounts net gain from operations excluding unrealized gains or losses 6. Commissions and expense allowances on reinsurance ceded 77,508,509 77,555,100 103,028,800 7. Reserve adjustments on reinsurance ceded (104,764,691) (142,285,276) (195,908,761) 8. Miscellaneous Income: 8.1 Income from fees associated with investment management, administration and contract guarantees from Separate Accounts 8.2 Charges and fees for deposit-type contracts 8.3 Aggregate write-ins for miscellaneous income 10,704,928 11,547,917 14,810,458 9. Totals (Lines 1 to 8.3) 910,116,380 879,304,511 1,133,681,827 10. Death benefits 53,246,204 58,920,127 81,893,554 11. Matured endowments (excluding guaranteed annual pure endowments) 12. Annuity benefits 55,010,178 56,781,680 75,650,605 13. Disability benefits and benefits under accident and health contracts 175,367,811 171,824,033 231,128,074 14. Coupons, guaranteed annual pure endowments and similar benefits 15. Surrender benefits and withdrawals for life contracts 41,604,967 43,072,920 56,308,785 16. Group conversions (1,209,200) (158,457) (248,326) 17. Interest and adjustments on contract or deposit-type contract funds 1,686,407 1,266,156 1,680,461 18. Payments on supplementary contracts with life contingencies 396,779 444,300 581,752 19. Increase in aggregate reserves for life and accident and health contracts (37,550,488) (69,246,061) (102,226,589) 20. Totals (Lines 10 to 19) 288,552,658 262,904,698 344,768,317 21. Commissions on premiums, annuity considerations, and deposit-type contract funds (direct business only) 127,089,599 115,455,442 155,148,815 22. Commissions and expense allowances on reinsurance assumed 392,333 386,263 507,848 23. General insurance expenses 140,257,555 133,794,994 181,214,584 24. Insurance taxes, licenses and fees, excluding federal income taxes 23,232,088 25,681,380 30,809,505 25. Increase in loading on deferred and uncollected premiums 12,772,366 10,683,333 2,925,925 26. Net transfers to or (from) Separate Accounts net of reinsurance 27. Aggregate write-ins for deductions 144,894,303 155,293,518 206,896,717 28. Totals (Lines 20 to 27) 737,190,904 704,199,628 922,271,711 29. Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus Line 28) 172,925,476 175,104,883 211,410,116 30. Dividends to policyholders 31. Net gain from operations after dividends to policyholders and before federal income taxes (Line 29 minus Line 30) 172,925,476 175,104,883 211,410,116 32. Federal and foreign income taxes incurred (excluding tax on capital gains) (11,152,419) 47,510,410 47,856,192 33. Net gain from operations after dividends to policyholders and federal income taxes and before realized capital gains or (losses) (Line 31 minus Line 32) 184,077,896 127,594,473 163,553,924 34. Net realized capital gains (losses) (excluding gains (losses) transferred to the IMR) less capital gains tax of $ (2,060,826) (excluding taxes of $ 591,240 transferred to the IMR) 3,916,945 950,737 (11,263) 35. Net income (Line 33 plus Line 34) 187,994,841 128,545,210 163,542,661 CAPITAL AND SURPLUS ACCOUNT 36. Capital and surplus, December 31, prior year 605,033,572 728,167,348 728,167,348 37. Net income (Line 35) 187,994,841 128,545,210 163,542,661 38. Change in net unrealized capital gains (losses) less capital gains tax of $ 291,455 1,096,424 1,137,748 (228,137) 39. Change in net unrealized foreign exchange capital gain (loss) (1,013,785) (1,513,868) (1,484,791) 40. Change in net deferred income tax (20,881,631) 4,740,515 (118,417,408) 41. Change in nonadmitted assets 25,083,449 5,138,592 34,793,141 42. Change in liability for reinsurance in unauthorized and certified companies (1,225,730) 438 (73,950) 43. Change in reserve on account of change in valuation basis, (increase) or decrease 0 0 (6,658,901) 44. Change in asset valuation reserve 2,614,650 1,900,120 1,983,862 45. Change in treasury stock 46. Surplus (contributed to) withdrawn from Separate Accounts during period 47. Other changes in surplus in Separate Accounts Statement 48. Change in surplus notes 49. Cumulative effect of changes in accounting principles 50. Capital changes: 50.1 Paid in 50.2 Transferred from surplus (Stock Dividend) 50.3 Transferred to surplus 51. Surplus adjustment: 51.1 Paid in 51.2 Transferred to capital (Stock Dividend) 51.3 Transferred from capital 51.4 Change in surplus as a result of reinsurance (4,333,017) (5,072,375) (6,590,253) 52. Dividends to stockholders (98,000,000) (125,000,000) (190,000,000) 53. Aggregate write-ins for gains and losses in surplus 54. Net change in capital and surplus for the year (Lines 37 through 53) 91,335,202 9,876,380 (123,133,776) 55. Capital and surplus, as of statement date (Lines 36 + 54) 696,368,774 738,043,728 605,033,572 DETAILS OF WRITE-INS 08.301. Corporate owned life insurance 4,415,206 4,371,673 5,872,098 08.302. Surrender charges 3,280,070 5,606,922 6,893,414 08.303. Other income 2,903,787 1,497,461 1,943,493 08.398. Summary of remaining write-ins for Line 8.3 from overflow page 105,866 71,862 101,453 08.399. Totals (Lines 08.301 through 08.303 plus 08.398) (Line 8.3 above) 10,704,928 11,547,917 14,810,458 2701. Loss from ceded modco agreement 144,868,052 155,090,847 206,325,654 2702. Reserve adjustments on assumed modco reinsurance (440,549) (120,518) (14,463) 2703. Change in pensioner life reserve (87,339) (144,087) (406,329) 2798. Summary of remaining write-ins for Line 27 from overflow page 554,140 467,276 991,855 2799. Totals (Lines 2701 through 2703 plus 2798)(Line 27 above) 144,894,303 155,293,518 206,896,717 5301. 5302. 5303. 5398. Summary of remaining write-ins for Line 53 from overflow page 5399. Totals (Lines 5301 through 5303 plus 5398)(Line 53 above)
4 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY CASH FLOW 1 2 3 Current Year Prior Year Prior Year Ended To Date To Date December 31
Cash from Operations
1. Premiums collected net of reinsurance 577,929,006 569,802,511 757,468,518
2. Net investment income 315,862,542 327,004,814 430,216,811
3. Miscellaneous income 79,538,390 79,045,907 104,792,960
4. Total (Lines 1 to 3) 973,329,938 975,853,232 1,292,478,288
5. Benefit and loss related payments 430,449,152 440,323,766 625,549,955
6. Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts
7. Commissions, expenses paid and aggregate write-ins for deductions 438,654,711 441,384,519 584,027,587
8. Dividends paid to policyholders 9. Federal and foreign income taxes paid (recovered) net of $ 2,342,984 tax on capital
gains (losses) 8,818,297 39,367,386 57,376,739
10. Total (Lines 5 through 9) 877,922,160 921,075,671 1,266,954,281
11. Net cash from operations (Line 4 minus Line 10) 95,407,778 54,777,561 25,524,007
Cash from Investments
12. Proceeds from investments sold, matured or repaid:
12.1 Bonds 456,149,842 419,436,637 580,145,556
12.2 Stocks 0 545,644 545,645
12.3 Mortgage loans 38,260,214 48,110,173 70,343,841
12.4 Real estate 0 431,420 431,420
12.5 Other invested assets 3,313,956 3,341,502 4,209,636
12.6 Net gains or (losses) on cash, cash equivalents and short-term investments 3,151 2,625 656
12.7 Miscellaneous proceeds 2,664,147 8,981,665 1,074,510
12.8 Total investment proceeds (Lines 12.1 to 12.7) 500,391,310 480,849,665 656,751,264
13. Cost of investments acquired (long-term only):
13.1 Bonds 372,019,091 326,101,519 413,396,153
13.2 Stocks 0 555,105 555,106
13.3 Mortgage loans 15,500,000 30,000,000 61,987,500
13.4 Real estate 3,226,628 2,505,862 3,003,817
13.5 Other invested assets 1,642,778 1,925,304 2,918,281
13.6 Miscellaneous applications 0 38,118,099 5,948,617
13.7 Total investments acquired (Lines 13.1 to 13.6) 392,388,497 399,205,889 487,809,474
14. Net increase (or decrease) in contract loans and premium notes 4,299,734 5,782,481 7,692,074
15. Net cash from investments (Line 12.8 minus Line 13.7 and Line 14) 103,703,079 75,861,295 161,249,717
Cash from Financing and Miscellaneous Sources
16. Cash provided (applied):
16.1 Surplus notes, capital notes
16.2 Capital and paid in surplus, less treasury stock
16.3 Borrowed funds (3,500,000) (22,200,000) (18,700,000)
16.4 Net deposits on deposit-type contracts and other insurance liabilities (26,655,588) (698,393) (818,503)
16.5 Dividends to stockholders 98,000,000 125,000,000 190,000,000
16.6 Other cash provided (applied) 7,831,236 10,694,538 12,178,644
17. Net cash from financing and miscellaneous sources (Line 16.1 through Line 16.4 minus Line 16.5 plus Line 16.6) (120,324,352) (137,203,856) (197,339,860)
RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
18. Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17) 78,786,504 (6,565,000) (10,566,136)
19. Cash, cash equivalents and short-term investments:
19.1 Beginning of year 6,536,516 17,102,651 17,102,651
19.2 End of period (Line 18 plus Line 19.1) 85,323,020 10,537,651 6,536,516
Note: Supplemental disclosures of cash flow information for non-cash transactions: 20.0001. Bond principal received in the form of premium tax credits 364,969 271,874 400,761 20.0002. Schedule D bonds exchanged 15,018,117 10,036,000 17,614,323
5 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY EXHIBIT 1
DIRECT PREMIUMS AND DEPOSIT-TYPE CONTRACTS 1 2 3 Current Year Prior Year Prior Year Ended To Date To Date December 31
1. Industrial life
2. Ordinary life insurance 254,693,257 251,271,550 312,124,904
3. Ordinary individual annuities 45,724 54,245 71,201
4. Credit life (group and individual)
5. Group life insurance 948,539 1,045,499 1,391,458
6. Group annuities
7. A & H - group 2,649,902 2,478,970 3,492,038
8. A & H - credit (group and individual)
9. A & H - other 542,083,877 544,951,923 718,746,320
10. Aggregate of all other lines of business
11. Subtotal 800,421,298 799,802,188 1,035,825,921
12. Deposit-type contracts 4,150 56,912 57,512
13. Total 800,425,448 799,859,100 1,035,883,433
DETAILS OF WRITE-INS
1001.
1002.
1003.
1098. Summary of remaining write-ins for Line 10 from overflow page
1099. Totals (Lines 1001 through 1003 plus 1098)(Line 10 above)
6
STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies and Going Concern
A. Accounting Practices
The financial statements of Provident Life and Accident Insurance Company (the Company) have been completed in accordance with Statutory Accounting Principles (SAP) prescribed in the National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures manual. The Tennessee Department of Commerce and Insurance (the Department) has adopted no accounting practices that differ materially from SAP.
SSAP # F/S Page F/S Line # 9/30/2018 12/31/2017 NET INCOME
(1) The Company's state basis (Page 4, Line 35, Columns 1 & 3) XXX XXX XXX $ 187,994,841 $ 163,542,661
(2) State Prescribed Practices that are an increase/(decrease) from NAIC SAP — —
(3) State Permitted Practices that are an increase/(decrease) from NAIC SAP — —
(4) NAIC SAP (1-2-3=4) XXX XXX XXX $ 187,994,841 $ 163,542,661
SURPLUS
(5) The Company's state basis (Page 3, Line 38, Columns 1 & 2) XXX XXX XXX $ 696,368,774 $ 605,033,572
(6) State Prescribed Practices that are an increase/(decrease) from NAIC SAP — —
(7) State Permitted Practices that are an increase/(decrease) from NAIC SAP — —
(8) NAIC SAP (5-6-7=8) XXX XXX XXX $ 696,368,774 $ 605,033,572
B. Use of Estimates in the Preparation of the Financial Statements
No significant change
C. Accounting Policy
(1) No significant change
(2) No significant change
(3) No significant change
(4) No significant change
(5) No significant change
(6) Loan-backed and structured securities are stated at either amortized cost or the lower of amortized cost or fair value. Amortization of mortgage-backed and loan-backed securities considers the estimated timing and amount of prepayments of the underlying loans at the date of purchase. Actual prepayment experience is periodically reviewed with significant changes in estimated cash flows from the original purchase assumptions accounted for using the retrospective method.
(7) Not applicable
(8) No significant change
(9) No significant change
(10) No significant change
(11) No significant change
7
STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
(12) No significant change
(13) Not applicable
D. Going Concern
After evaluating the Company’s ability to continue as a going concern, management was not aware of any conditions or events which raised substantial doubts concerning the Company’s ability to continue as a going concern as of the date these financial statements were issued.
2. Accounting Changes and Corrections of Errors
No significant change
3. Business Combinations and Goodwill
Not applicable
4. Discontinued Operations
Not applicable
5. Investments
A. No significant change
B. Not applicable
C. Not applicable
D. Loan-Backed Securities
(1) Prepayment assumptions for mortgage-backed/loan-backed and structured securities were obtained from broker dealer survey values and internal estimates.
(2) Not applicable
(3) Not applicable
(4) As of September 30, 2018, impaired securities (fair value is less than cost or amortized cost) for which an other-than- temporary impairment had not been recognized in earnings as a realized loss (including securities with a recognized other- than-temporary impairment for non-interest related declines when a non-recognized interest related impairment remains) are as follows:
a. The aggregate amount of unrealized losses: 1. Less than 12 months $ 952,457 2. 12 months or longer $ 3,297,574
b. The aggregate related fair value of securities with unrealized losses: 1. Less than 12 months $ 52,149,651 2. 12 months or longer $ 54,551,600
(5) In determining when a decline in fair value below amortized cost of a security is other than temporary, the Company evaluates the following factors:
• Whether the Company expects to recover the entire amortized cost basis of the security. • Whether the Company intends to sell the security or will be required to sell the security before the recovery of its amortized cost basis. • Whether the security is current as to principal and interest payments. • The significance of the decline in value. • The time period during which there has been a significant decline in value. • Current and future business prospects and trends of earnings. • The valuation of the security’s underlying collateral. • Relevant industry conditions and trends relative to their historical cycles. • Market conditions. • Rating agency and governmental actions. • Bid and offering prices and the level of trading activity. • Adverse changes in estimated cash flows for securitized investments. • Changes in fair value subsequent to the balance sheet date. • Any other key measures for the related security.
7.1
STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
The Company evaluates available information, including the factors noted above, both positive and negative, in reaching its conclusions. In particular, the Company also considers the strength of the issuer’s balance sheet, its debt obligations and near term funding requirements, cash flow and liquidity, the profitability of its core businesses, the availability of marketable assets which could be sold to increase liquidity, its industry fundamentals and regulatory environment, and its access to capital markets. Although available and applicable factors are considered in the analysis, the expectation of recovering the entire amortized cost basis of the security, whether the Company intends to sell the security, whether it is more likely than not the Company will be required to sell the security before recovery of its amortized cost, and whether the security is current on principal and interest payments are the most critical factors in determining whether impairments are other than temporary. The significance of the decline in value and the length of time during which there has been a significant decline are also important factors, but the Company does not record an impairment loss based solely on these two factors, since often other factors will impact the evaluation of a security.
While determining other-than-temporary impairments is a judgmental area, the Company utilizes a formal, well-defined, and disciplined process to monitor and evaluate its investments, supported by issuer specific research and documentation as of the end of each period. The process results in a thorough evaluation of problem investments and the recording of realized losses on a timely basis for investments determined to have an other-than-temporary impairment.
E. Dollar Repurchase Agreements and/or Securities Lending Agreements
(1) No significant change
(2) No significant change
(3) a. No significant change
b. As of September 30, 2018, the Company had no cash collateral received from securities lending activities. As of December 31, 2017, the aggregate fair value of cash collateral received from securities lending transactions was $2,679,500. The Company reinvests this cash collateral into higher yielding securities. The Company has not sold or repledged any securities collateral received from securities lending transactions.
c. No significant change
(4) Not applicable
(5) No significant change
(6) No significant change
(7) Not applicable
F. Not applicable
G. Not applicable
H. Not applicable
I. Not applicable
J. Not applicable
K. No significant change
L. No significant change
M. Not applicable
N. Not applicable
O. Not applicable
P. Not applicable
Q. Not applicable
R. No significant change
6. Joint Ventures, Partnerships and Limited Liability Companies
No significant change
7. Investment Income
No significant change
7.2
STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
8. Derivative Instruments
A. No significant change
B. Credit Spread Total Return Swaps : The Company has entered into a series of credit spread total return swaps with Unum Limited, a subsidiary of Unum European Holding Company Limited (72.0 percent ownership) and UnumProvident Finance Company Limited (28.0 percent ownership), both of which are wholly-owned subsidiaries of Unum Group. The credit spread total return swaps reference specific corporate bonds denominated in pound sterling (reference securities). Unum Limited holds bonds that are identical to the reference securities in an amount equal to the notional amount of the credit spread total return swaps. In each credit spread total return swap transaction, Unum Limited agrees to pay fees at specified intervals to the Company to assume credit spread risk related to the reference securities. If an early termination event as defined by the contract occurs, the contract may be cash settled on a net basis or it may be settled gross by the delivery of par quantities of the reference securities equal to the specified notional amount in exchange for the payment of cash by the Company in an amount equal to the early termination amount, as calculated in accordance with the terms of the swap transaction. Early termination events include optional redemption by the issuer of the reference security in whole or in part and any failure by the issuer of the reference security to pay its obligations with respect to the reference security when due.
The Company combined each credit spread total return swap transaction with one or more corporate bonds the Company holds to create replication (synthetic asset) transactions. The Company accounts for these as replication (synthetic asset) transactions rather than as hedging transactions.
As of September 30, 2018, the Company held £186,063,371 or $242,459,182 notional of credit spread total return swaps with Unum Limited. The credit spread total return swaps have no carrying value, and the net fair value was £(571,740) or $(745,034) at September 30, 2018. Total fees earned by the Company from Unum Limited related to the credit spread total return swaps in the first nine months of 2018 were £1,395,381 or $1,880,414.
The following table lists the specific terms and referenced corporate bonds for the credit spread total return swaps:
September 30, 2018 Term of Credit Maximum Potential Fair Value of Credit Reference Security Spread Total Return Amount of Future Spread Total Return Swaps Payments Swaps Wells Fargo Bank NA - EF5840139 8/1/2023 $13,714,606 $23,926 General Electric Co - EC1183366 12/7/2028 13,558,808 (639,774) Goldman Sachs Group Inc - EK0410432 1/29/2026 8,549,639 51,362 JPMorgan Chase & Co - EJ4812859 12/18/2026 28,028,211 (53,386) McDonald's Corp - EC2180817 2/3/2020 6,024,753 47,703 Textron Inc - EC2426384 4/7/2020 8,562,058 175,719 Citigroup Inc - ED0769866 12/12/2018 13,966,626 120,274 Bank of America Corp - ED2349956 12/4/2019 7,310,065 44,348 Metlife Inc - ED7198556 12/9/2024 827,469 228 Metlife Inc - ED9945285 6/29/2020 2,738,439 (7,987) American Intl Group - EF3777275 4/26/2023 5,073,734 87,758 GE Capital - EF4095107 5/24/2023 14,388,785 (178,844) Johnson & Johnson - EG9913542 11/6/2024 17,412,560 65,470 Met Life Glob Funding I - EJ3740549 9/30/2026 14,628,394 (93,661) Anheuser-Busch Inbev NV - EJ8417945 9/24/2025 3,043,390 (32,172) Goldman Sach Group Inc - EK0410432 1/29/2026 15,839,410 (4,749) Walgreens Boots Alliance - EK5943536 11/20/2025 10,015,991 (133,326) Anheuser-Busch Inbev NV - AN6129950 5/25/2037 16,341,376 (68,107) McKesson Corp - AM3295251 2/17/2029 11,095,734 (156,257) Wells Fargo & Company - EJ3526179 9/12/2029 2,820,742 (84,907) Morgan Stanley - AM7545859 3/9/2027 7,637,191 (33,527) Verizon Communications - AL0126733 11/2/2035 6,292,084 63,537 Verizon Communications - AP6920411 10/27/2036 2,581,741 32,056 Autostrade Per L'italia - ED4892086 6/9/2022 12,007,376 29,282
See Schedule DB for further details of the Company’s derivatives activity.
C. For derivatives that qualify as replications (synthetic asset) transactions, the periodic receipt and related accruals of fees are reported as net investment income.
D. Not applicable
E. No significant change
F. No significant change
7.3
STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
G. Not applicable
H. Not applicable
9. Income Taxes
During the first nine months of 2018, the Company recorded a $7,738,291 unrecognized tax benefit liability for a tax reserving position taken on its 2017 tax return. The Company recognizes interest expense and penalties, if applicable, related to unrecognized tax benefits in tax expense, net of federal income tax. The Company has not recorded penalties with respect to the unrecognized tax benefit recorded in the first nine months of 2018 as the technical merits of the position have authority to prevent any assessment of penalty. The Company has not recorded interest with respect to the unrecognized tax benefit, as it currently has sufficient funds on account with the IRS to prevent the accrual of interest. It is reasonably possible this item could reverse in the next 12 months.
On December 22, 2017, the U.S. Federal government enacted H.R. 1, An Act to Provide Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, more commonly known as the Tax Cuts and Jobs Act (TCJA), which reduces the federal corporate tax rate from 35 percent to 21 percent effective January 1, 2018. At September 30, 2018, the Company’s estimates recorded at December 31, 2017 for the tax effects of TCJA are not final and the Company has not recorded any material adjustments related to those estimates during the first nine months of 2018. The Company will continue to refine its calculations as additional analysis is completed and record the final amounts during the one-year measurement period after the enactment date as allowed by INT 18-01. Tax estimates recorded at December 31, 2017 and September 30, 2018 may be impacted by changes in accounting and tax interpretations of the TCJA legislation.
10. Information Concerning Parent, Subsidiaries, Affiliates and Other Related Parties
A. No significant change
B. & C. Pursuant to a series of credit spread total return swaps that the Company has entered into with Unum Limited, the Company earned £1,395,381 or $1,880,414 in fees during the first nine months of 2018. At September 30, 2018, the Company had collateral posted to Unum Limited in the form of a U.S. Treasury bond with an amortized cost and fair value in the amount of $552,406 and $597,979, respectively, based on the market value of the credit spread total return swaps. See Note 8 for further information.
D. No significant change
E. Not applicable
F. No significant change
G. No significant change
H. Not applicable
I. Not applicable
J. Not applicable
K. Not applicable
L. Not applicable
M. Not applicable
N. Not applicable
11. Debt
A. Not applicable
B. Federal Home Loan Bank (FHLB) Agreements
(1) The Company is a member of the FHLB of Cincinnati. Through its membership, the Company has outstanding funding agreements in the amount of $78,000,000 as of September 30, 2018. The Company uses these funds in an investment spread strategy, consistent with its other investment spread programs. The Company records the funds under SSAP No. 52, Deposit Type Contracts , consistent with its accounting for other deposit type contracts. It is not part of the Company’s strategy to utilize these funds for operations, and any funds obtained from the FHLB of Cincinnati for use in general operations would be accounted for under SSAP No. 15, Debt and Holding Company Obligations , as borrowed money. The Company has determined its actual maximum borrowing capacity, presented in the table below, based on the current value of collateral posted to FHLB of Cincinnati.
7.4
STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
(2) FHLB Capital Stock a. Aggregate Totals
1. September 30, 2018 1 2 3 Total General Separate 2+3 Account Accounts
(a) Membership Stock - Class A $ — $ — $ — (b) Membership Stock - Class B 9,640,745 9,640,745 — (c) Activity Stock 3,120,000 3,120,000 — (d) Excess Stock 1,793,855 1,793,855 — (e) Aggregate Total (a+b+c+d) $ 14,554,600 $ 14,554,600 $ —
(f) Actual Borrowing Capacity as Determined by the Insurer $ 117,580,637 XXX XXX
2. December 31, 2017 1 2 3 Total General Separate 2+3 Account Accounts
(a) Membership Stock - Class A $ — $ — $ — (b) Membership Stock - Class B 9,927,112 9,927,112 — (c) Activity Stock 4,160,000 4,160,000 — (d) Excess Stock 467,488 467,488 — (e) Aggregate Total (a+b+c+d) $ 14,554,600 $ 14,554,600 $ —
(f) Actual Borrowing Capacity as Determined by the Insurer $ 143,247,092 XXX XXX
b. Membership Stock (Class A and B) Eligible and Not Eligible for Redemption
1 2 Eligible for Redemption 3 4 5 6 Balance at Not Eligible 6 Months Membership 9/30/2018 for Less Than 6 to Less Than 1 to Less Than Stock (2+3+4+5+6) Redemption Months 1 Year 3 Years 3 to 5 Years
1. Class A $ — $ — $ — $ — $ — $ — 2. Class B 9,640,745 9,640,745 — — — —
7.5
STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
(3) Collateral Pledged to FHLB a. Amount Pledged as of Reporting Date
September 30, 2018 1 2 3 Aggregate Total Collateral Pledged Fair Value Carrying Value Total Borrowing
1. General and Separate Accounts (Lines 2+3) $ 142,943,733 $ 140,741,535 $ 78,000,000 2. General Account 142,943,733 140,741,535 78,000,000 3. Separate Accounts — — —
December 31, 2017
4. General and Separate Accounts $ 183,837,197 $ 167,804,149 $ 104,000,000
b. Maximum Amount Pledged During the Reporting Period
September 30, 2018 1 2 3 Amount Borrowed at Time of Total Maximum Collateral Pledged Fair Value Carrying Value Maximum Collateral
1. General and Separate Accounts (Lines 2+3) $ 182,790,274 $ 167,474,986 $ 104,000,000 2. General Account 182,790,274 167,474,986 104,000,000 3. Separate Accounts — — —
December 31, 2017
4. General and Separate Accounts $ 199,969,082 $ 185,628,541 $ 104,000,000
7.6
STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
(4) Borrowing from FHLB a. Amount Borrowed as of the Reporting Date
September 30, 2018 1 2 3 4 Total General Separate Funding Agreements 2+3 Account Accounts Reserves Established
1. (a) Debt $ — $ — $ — XXX (b) Funding Agreements 78,000,000 78,000,000 — 78,000,000 (c) Other — — — XXX (d) Aggregate Total (a+b+c) $ 78,000,000 $ 78,000,000 $ — $ 78,000,000
December 31, 2017 1 2 3 4 Total General Separate Funding Agreements 2+3 Account Accounts Reserves Established
2. (a) Debt $ — $ — $ — XXX (b) Funding Agreements 104,000,000 104,000,000 — 104,000,000 (c) Other — — — XXX (d) Aggregate Total (a+b+c) $ 104,000,000 $ 104,000,000 $ — $ 104,000,000
b. Maximum Amount During Reporting Period (Current Year)
September 30, 2018 1 2 3 Total General Separate 2+3 Account Accounts
1. Debt $ — $ — $ — 2. Funding Agreements 104,000,000 104,000,000 — 3. Other — — — 4. Aggregate Total (Lines 1+2+3) $ 104,000,000 $ 104,000,000 $ —
c. FHLB - Prepayment Obligations
Does the company have prepayment obligations under the following arrangements (YES/NO)?
1. Debt — 2. Funding Agreements No 3. Other —
12. Retirement Plans, Deferred Compensation, Postemployment Benefits and Compensated Absences and Other Postretirement Benefit Plans
The Company purchases services from its affiliates in accordance with an intercompany cost sharing arrangement. There is no material obligation on the part of the Company beyond the amounts paid as part of the cost of services purchased.
13. Capital and Surplus, Shareholders’ Dividend Restrictions and Quasi-Reorganizations
(1) No significant change
(2) No significant change
(3) No significant change
7.7
STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
(4) During the first nine months of 2018, the Company paid the following ordinary common stock dividends in cash to its parent, Unum Group, and affiliates, The Paul Revere Life Insurance Company (Paul Revere) and Unum Life Insurance Company of America (Unum America):
March 26 June 25 September 20 Unum Group $ 26,027,700 $ 23,794,300 $ 34,360,000 Paul Revere 3,060,300 2,797,700 4,040,000 Unum America 1,212,000 1,108,000 1,600,000
(5) No significant change
(6) Not applicable
(7) Not applicable
(8) Not applicable
(9) Not applicable
(10) No significant change
(11) Not applicable
(12) Not applicable
(13) Not applicable
14. Liabilities, Contingencies and Assessments
A. No significant change
B. No significant change
C. Not applicable
D. No significant change
E. Not applicable
F. Unum Group is a defendant in a number of litigation matters. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning Unum Group's compliance with applicable insurance and other laws and regulations. Given the complexity and scope of Unum Group's litigation and regulatory matters, it is not possible to predict the ultimate outcome of all pending investigations or legal proceedings or provide reasonable estimates of potential losses, except if noted in connection with specific matters.
In some of these matters, no specified amount is sought. In others, very large or indeterminate amounts, including punitive and treble damages, are asserted. There is a wide variation of pleading practice permitted in the United States courts with respect to requests for monetary damages, including some courts in which no specified amount is required and others which allow the plaintiff to state only that the amount sought is sufficient to invoke the jurisdiction of that court. Further, some jurisdictions permit plaintiffs to allege damages well in excess of reasonably possible verdicts. Based on extensive experience and that of others in the industry with respect to litigating or resolving claims through settlement over an extended period of time, Unum Group believes that the monetary damages asserted in a lawsuit or claim bear little relation to the merits of the case, or the likely disposition value. Therefore, the specific monetary relief sought is not stated.
Unless indicated otherwise in the descriptions below, reserves have not been established for litigation and contingencies. An estimated loss is accrued when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated.
Claims Handling Matters
Unum Group and its insurance subsidiaries, including the Company, in the ordinary course of its business, are engaged in claim litigation where disputes arise as a result of a denial or termination of benefits. Most typically these lawsuits are filed on behalf of a single claimant or policyholder, and in some of these individual actions punitive damages are sought, such as claims alleging bad faith in the handling of insurance claims. For its general claim litigation, Unum Group and its insurance company subsidiaries, including the Company, maintain reserves based on experience to satisfy judgments and settlements in the normal course. Management expects that the ultimate liability, if any, with respect to general claim litigation, after consideration of the reserves maintained, will not be material to the financial condition of the Company. Nevertheless, given the inherent unpredictability of litigation, it is possible that an adverse outcome in certain claim litigation involving punitive damages could, from time to time, have a material adverse effect on the Company’s results of operations in a period, depending on the results of operations of the Company for the particular period. The Company is unable to estimate the range of reasonably possible punitive losses.
7.8
STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
From time to time class action allegations are pursued where the claimant or policyholder purports to represent a larger number of individuals who are similarly situated. Since each insurance claim is evaluated based on its own merits, there is rarely a single act or series of actions, which can properly be addressed by a class action. Nevertheless, Unum Group monitors these cases closely and defends itself appropriately where these allegations are made.
Miscellaneous Matters
Similar to other insurers, Unum Group was recently the subject of an examination by a third party acting on behalf of a number of state treasurers concerning its compliance with the unclaimed property laws of the participating states. Unum Group cooperated fully with this examination and in the fourth quarter of 2017, Unum Group started the process to reach a Global Resolution Agreement with the third party regarding settlement of the examination, which it finalized in January of 2018. Under the terms of the agreement, the third party acting on behalf of the signatory states compared insured data to the Social Security Administration's Death Master File to identify deceased insureds and contract holders where a valid claim has not been made. During the fourth quarter of 2017, Unum Group established reserves which reflect its estimate of the liability expected to be paid as it executes on the terms of the settlement. Unum Group is also cooperating with a Delaware Market Conduct examination involving the same issue, which is currently inactive, as well as defending litigation on this issue in West Virginia, as described in the following paragraph. The legal and regulatory environment around unclaimed death benefits continues to evolve. It is possible that the current settlement and/or similar investigations by other state jurisdictions may result in payment to beneficiaries, the payment of abandoned funds under state law, and/or administrative penalties, the total of which may be in excess of the reserves established.
In 2009, a Pennsylvania-based insurance company and its affiliates were ordered into rehabilitation, and the Pennsylvania Insurance Commissioner, who was appointed as the Rehabilitator, filed petitions for liquidation with the Commonwealth Court of Pennsylvania. Under Pennsylvania law, payment of covered claims and other related insurance obligations are provided, within prescribed limits, by state guaranty associations. These guaranty associations assess fees to meet these obligations on insurance companies that sell insurance within the state, which are generally based on a company's pro rata portion of average premiums written or received for several years prior to the insolvency. In March 2017, a formal order of liquidation was issued, and as such, the Company was subject to an assessment by those guaranty associations that are responsible for policyholder claims, and accordingly accrued, in the first quarter of 2017, an estimated loss contingency. The Company continues to submit payment to satisfy this assessment as requests for payment are received from the guaranty associations.
15. Leases
No significant change
16. Information About Financial Instruments With Off-Balance Sheet Risk and Financial Instruments With Concentrations of Credit Risk
(1) The below summarizes the notional amounts of the Company’s financial instruments with off-balance sheet risk: Assets Liabilities September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 a. Swaps $ 208,272,622 $ 236,630,247 $ 277,775,665 $ 220,956,307 b. Futures — — — — c. Options — — — — d. Total $ 208,272,622 $ 236,630,247 $ 277,775,665 $ 220,956,307
See Schedule DB for additional detail.
(2) See Note 8 for discussion of the terms of these instruments.
(3) The Company is exposed to credit-related losses in the event of nonperformance by counterparties to financial instruments, but it does not expect any of its current counterparties to fail to meet their obligations given their high credit ratings. The counterparty credit exposure of derivatives is limited to the fair value of those contracts in a net gain position. The Company mitigates credit risk by entering into master agreements with its counterparties whereby contracts in a gain position can be offset against contracts in a loss position. See Schedule DB Part D for detail of the Company’s counterparty exposures.
(4) Credit risk is managed by only entering into transactions with investment-grade counterparties and obtaining collateral where appropriate and customary. The Company typically enters into bilateral, cross-collateralization agreements with its counterparties. These agreements require the counterparty in a loss position to submit acceptable collateral with the other counterparty in the event the net loss position meets or exceeds an agreed upon amount.
17. Sale, Transfer and Servicing of Financial Assets, and Extinguishments of Liabilities
A. Not applicable
B. Transfer and Servicing of Financial Assets
(1) No significant change
(2) Not applicable
7.9
STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
(3) Not applicable
(4) Not applicable
(5) No significant change
(6) Not applicable
(7) Not applicable
C. Not applicable
18. Gain or Loss to the Reporting Entity from Uninsured Plans and the Uninsured Portion of Partially Insured Plans
No significant change
19. Direct Premium Written/Produced by Managing General Agents/Third Party Administrators
No significant change
20. Fair Value Measurements
The fair values of the Company’s financial instruments are categorized into a three-level classification. The lowest level input that is significant to the fair value measurement of a financial instrument is used to categorize the instrument and reflects the judgment of management. The valuation criterion for each level is summarized as follows:
• Level 1 - Inputs are unadjusted and represent quoted prices in active markets for identical assets or liabilities at the measurement date.
• Level 2 - Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 2 inputs include, for example, indicative prices obtained from brokers or pricing services validated to other observable market data and quoted prices for similar assets or liabilities.
• Level 3 - Inputs reflect the Company’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Financial assets and liabilities categorized as Level 3 are generally based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. The inputs reflect the Company’s estimates about the assumptions that market participants would use in pricing the instrument in a current period transaction.
See section C for further discussion of the Company’s valuation methods and techniques.
A. (1) Fair value measurements at September 30, 2018 are as follows:
a. Not applicable (Level 1) (Level 2) (Level 3) Total a Assets at fair value Derivatives $ — $ 501,459 $ — $ 501,459
b. Liabilities at fair value Derivatives $ — $ 12,975,610 $ — $ 12,975,610
There were no transfers between levels during the nine months ended September 30, 2018.
(2) Not applicable
(3) For fair value measurements of financial instruments that are transferred between levels, the Company reflects the transfers using the fair value at the beginning of the reporting period.
(4) See Section C below for derivatives valuation description.
(5) All derivatives positions are presented on a gross basis.
B. Not applicable
7.10
STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
C. Presented as follows are the fair values, admitted values, and categorization by input level of financial instruments held at the reporting date. The admitted values of financial instruments such as cash and cash equivalents, short-term investments, accounts and premiums receivable, accrued investment income, borrowed money, payable for securities lending, and short-term payables approximate fair value due to the short-term nature of the instruments. As such, these financial instruments are not included in the following charts.
September 30, 2018 Not Net Asset Practicable Value (NAV) Type of Financial Aggregate Admitted (Carrying Included In Instrument Fair Value Values Level 1 Level 2 Level 3 Value) Level 3 Admitted Assets Bonds $ 7,174,672,449 $ 6,512,681,665 $ 1,243,009,848 $ 5,770,109,732 $ 161,552,869 $ — $ — Preferred Stocks 97,492,640 89,850,008 97,311,800 180,840 — — — Common Stocks 14,554,600 14,554,600 — 14,554,600 — — — Mortgage Loans 421,122,370 418,387,914 — 421,122,370 — — — Contract Loans 211,683,970 153,687,135 — — 211,683,970 — — Derivatives 14,019,997 12,804,110 — 13,278,333 741,664 — — Other Invested Assets 124,413,171 119,258,216 20,876,790 9,255,288 94,281,093 — 41,431,042
Liabilities Deposit-Type Contracts $ 78,137,408 $ 78,137,408 $ — $ 78,137,408 $ — $ — $ — Derivatives 17,207,720 13,376,438 — 15,721,022 1,486,698 — — Unfunded Commitments: Investment Partnerships 2,480,520 2,480,520 — 2,480,520 — — —
December 31, 2017 Not Practicable NAV Type of Financial Aggregate Admitted (Carrying Included In Instrument Fair Value Values Level 1 Level 2 Level 3 Value) Level 3 Admitted Assets Bonds $ 7,658,764,988 $ 6,575,265,121 $ 477,819,333 $ 6,872,962,876 $ 307,982,779 $ — $ — Preferred Stocks 96,553,825 89,850,008 96,553,825 — — — — Common Stocks 14,554,600 14,554,600 — 14,554,600 — — — Mortgage Loans 465,179,289 441,382,128 — 465,179,289 — — — Contract Loans 216,739,313 149,387,401 — — 216,739,313 — — Derivatives 14,486,485 11,854,303 — 12,545,094 1,941,391 — — Other Invested Assets 141,629,885 134,444,340 7,076,150 25,091,988 109,461,747 — 43,310,097
Liabilities Deposit-Type Contracts $ 104,116,665 $ 104,116,665 $ — $ 104,116,665 $ — $ — $ — Derivatives 20,193,340 17,564,445 — 19,784,654 408,686 — — Unfunded Commitments: Investment Partnerships 2,480,520 2,480,520 — 2,480,520 — — —
The following methods and assumptions were used in estimating the fair values of the Company’s financial instruments.
Bonds and Preferred Stocks: Fair values are based on quoted market prices, where available. For bonds and preferred stocks not actively traded, fair values are estimated using values obtained from independent pricing services. For private placements, fair values are estimated using internally prepared valuations combining matrix pricing with vendor purchased software programs, including valuations based on estimates of future profitability. Additionally, the Company obtains prices from independent third- party brokers to establish valuations for certain of these securities.
Common Stocks: FHLB common stock is carried at cost, which approximates fair value.
Mortgage Loans: Fair values are estimated using discounted cash flow analyses and interest rates currently being offered for similar loans to borrowers with similar credit ratings and maturities. Loans with similar characteristics are aggregated for purposes of the calculations.
Contract Loans: Fair values are estimated using discounted cash flow analyses and interest rates currently being offered to policyholders with similar policies.
7.11
STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
Derivatives: Fair values for derivatives are based on market quotes and represent the net amount of cash the Company would have paid or received if the contracts had been settled or closed as of the last day of the period. The Company analyzes credit default swap spreads relative to the average credit spread embedded within the London Interbank Offered Rate (LIBOR) setting syndicate in determining the effect of credit risk on its derivatives' fair values. If net counterparty credit risk for a derivative asset is determined to be material and is not adequately reflected in the LIBOR-based fair value obtained from the Company’s pricing sources, it adjusts the valuations obtained from its pricing sources. For purposes of valuing net counterparty risk, the Company measures the fair value of a group of financial assets and financial liabilities on the basis of the price that would be received to sell a net long position or transfer a net short position for a particular risk exposure in an orderly transaction between market participants at the measurement date under current market conditions.
Other Invested Assets: Carrying amounts for tax credit partnerships equal the unamortized balance of contractual commitments to the partnerships and approximate fair value. The Company reports investments in private equity partnerships at its share of the partnerships' NAV as a practical expedient for fair value. Fair values for surplus notes are based on prices obtained from independent pricing services or quoted market prices.
Deposit-Type Contracts: Deposit-type contracts with stated maturity dates represent funds borrowed from the FHLB of Cincinnati plus accrued interest. Admitted values approximate fair values.
Unfunded Commitments to Investment Partnerships: Unfunded equity commitments represent legally binding amounts that the Company has committed to certain investment partnerships subject to the partnerships meeting specified conditions. When these conditions are met, the Company is obligated to invest these amounts in the partnerships. Admitted values approximate fair values.
Fair values for the Company’s insurance contracts other than investment contracts are not required to be disclosed. However, the fair values of liabilities under all insurance contracts are taken into consideration in the Company’s overall management of interest rate risk, which minimizes exposure to changing interest rates through the matching of investment maturities with amounts due under insurance contracts.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and, therefore, represents an exit price, not an entry price. The exit price objective applies regardless of a reporting entity’s intent and/or ability to sell the asset or transfer the liability at the measurement date.
The degree of judgment utilized in measuring the fair value of financial instruments generally correlates to the level of pricing observability. Financial instruments with readily available active quoted prices or for which fair value can be measured from actively quoted prices in active markets generally have more pricing observability and less judgment utilized in measuring fair value. An active market for a financial instrument is a market in which transactions for an asset or a similar asset occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value and should be used to measure fair value whenever available. Conversely, financial instruments rarely traded or not quoted have less observability and are measured at fair value using valuation techniques that require more judgment. Pricing observability is generally impacted by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction, and overall market conditions.
Valuation techniques used for assets and liabilities accounted for at fair value are generally categorized into three types. The market approach uses prices and other relevant information from market transactions involving identical or comparable assets or liabilities. The income approach converts future amounts, such as cash flows or earnings, to a single present amount, or a discounted amount. The cost approach is based upon the amount that currently would be required to replace the service capacity of an asset, or the current replacement cost.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available that can be obtained without undue cost and effort. In some cases, a single valuation technique will be appropriate (for example, when valuing an asset or liability using quoted prices in an active market for identical assets or liabilities). In other cases, multiple valuation techniques will be appropriate. If the Company uses multiple valuation techniques to measure fair value, it evaluates and weighs the results, as appropriate, considering the reasonableness of the range indicated by those results. A fair value measurement is the point within that range that is most representative of fair value in the circumstances.
The selection of the valuation method(s) to apply considers the definition of an exit price and depends on the nature of the asset or liability being valued. The Company generally uses valuation techniques consistent with the market approach, and to a lesser extent, the income approach. The Company believes the market approach valuation technique provides more observable data than the income approach, considering the type of investments the Company holds. The Company’s fair value measurements could differ significantly based on the valuation technique and available inputs. When using a pricing service, the Company obtains the vendor's pricing documentation to ensure the Company understands their methodologies. The Company periodically reviews and approves the selection of its pricing vendors to ensure the Company is in agreement with their current methodologies. When markets are less active, brokers may rely more on models with inputs based on the information available only to the broker. The Company’s internal investment management professionals, which include portfolio managers and analysts, monitor securities priced by brokers and evaluate their prices for reasonableness based on benchmarking to available primary and secondary market information. In weighing a broker quote as an input to fair value, the Company places less reliance on quotes that do not reflect the result of market transactions. The Company also considers the nature of the quote, particularly whether the quote is a binding offer. If prices in an inactive market do not reflect current prices for the same or similar assets, adjustments may be necessary to arrive at fair value. When relevant market data is unavailable, which may be the case during periods of market uncertainty, the income approach can, in suitable circumstances, provide a more appropriate fair value. During 2018, the Company has applied
7.12
STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
valuation techniques on a consistent basis to similar assets and liabilities and consistent with those techniques used at year end 2017.
The Company uses observable and unobservable inputs in measuring the fair value of its financial instruments. Inputs that may be used include the following:
• Broker market maker prices and price levels • Trade Reporting and Compliance Engine (TRACE) pricing • Prices obtained from external pricing services • Benchmark yields (Treasury and interest rate swap curves) • Transactional data for new issuance and secondary trades • Security cash flows and structures • Recent issuance/supply • Sector and issuer level spreads • Security credit ratings/maturity/capital structure/optionality • Corporate actions • Underlying collateral • Prepayment speeds/loan performance/delinquencies/weighted average life/seasoning • Public covenants • Comparative bond analysis • Derivative spreads • Relevant reports issued by analysts and rating agencies • Audited financial statements
The management of the Company’s investment portfolio includes establishing pricing policy and reviewing the reasonableness of sources and inputs used in developing pricing. The Company reviews all prices obtained to ensure they are consistent with a variety of observable market inputs and to verify the validity of a security’s price. In the event the Company receives a vendor's market price that does not appear reasonable based on its market analysis, the Company may challenge the price and request further information about the assumptions and methodologies used by the vendor to price the security. The Company may change the vendor price based on a better data source such as an actual trade. The Company also reviews all price changes from the prior month which fall outside a predetermined corridor. The overall valuation process for determining fair values may include adjustments to valuations obtained from the Company’s pricing sources when they do not represent a valid exit price. These adjustments may be made when, in the Company’s judgment and considering its knowledge of the financial conditions and industry in which the issuer operates, certain features of the financial instrument require that an adjustment be made to the value originally obtained from the Company’s pricing sources. These features may include the complexity of the financial instrument, the market in which the financial instrument is traded, counterparty credit risk, credit structure, concentration, or liquidity. Additionally, an adjustment to the price derived from a model typically reflects the Company’s judgment of the inputs that other participants in the market for the financial instrument being measured at fair value would consider in pricing that same financial instrument. In the event an asset is sold, the Company tests the validity of the fair value determined by its valuation techniques by comparing the selling price to the fair value determined for the asset in the immediately preceding month end reporting period closest to the transaction date.
The parameters and inputs used to validate a price on a security may be adjusted for assumptions about risk and current market conditions on a quarter to quarter basis, as certain features may be more significant drivers of valuation at the time of pricing. Changes to inputs in valuations are not changes to valuation methodologies; rather, the inputs are modified to reflect direct or indirect impacts on asset classes from changes in market conditions.
Certain of the Company’s investments do not have readily determinable market prices and/or observable inputs or may at times be affected by the lack of market liquidity. For these securities, the Company uses internally prepared valuations combining matrix pricing with vendor purchased software programs, including valuations based on estimates of future profitability, to estimate the fair value. Additionally, the Company may obtain prices from independent third-party brokers to aid in establishing valuations for certain of these securities. Key assumptions used to determine fair value for these securities include risk free interest rates, risk premiums, performance of underlying collateral (if any), and other factors involving significant assumptions which may or may not reflect those of an active market.
The Company considers transactions in inactive or disorderly markets to be less representative of fair value. The Company uses all available observable inputs when measuring fair value, but when significant other unobservable inputs and adjustments are necessary, it classifies these assets or liabilities as Level 3.
D. Not applicable
21. Other Items
No significant change
22. Events Subsequent
No significant change
23. Reinsurance
No significant change
7.13
STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
24. Retrospectively Rated Contracts & Contracts Subject to Redetermination
A. No significant change
B. No significant change
C. No significant change
D. Not applicable
E. Not applicable
25. Change in Incurred Losses and Loss Adjustment Expenses
A. As of December 31, 2017, reserves for unpaid claim and claim adjustment expenses attributable to claims incurred on or before that date were $3,592,018,111. For the nine months ended September 30, 2018, $478,589,575 had been paid for incurred claims and claim adjustment expenses attributable to claims incurred in prior years. As of September 30, 2018, reserves remaining for prior years were $3,296,584,109 as a result of re-estimation of unpaid claims and claim adjustment expenses, principally on accident and health policies. Therefore, there has been a cost related to prior year development of $183,155,573 for the period December 31, 2017 to September 30, 2018, excluding net investment income of $163,826,115 earned on invested assets supporting these reserves during the same period. The majority of the reserve balance is related to disability claims with long-tail payouts on which interest earned on assets backing the liabilities is an integral part of reserving, and this should be considered in understanding the development of prior year claims. In addition, the Company experienced $323,196 of favorable premium adjustments on directly written experience-rated policies during the nine months ended September 30, 2018.
B. There were no significant changes in methodologies and assumptions used in calculating the liability for unpaid losses and loss adjustment expenses.
26. Intercompany Pooling Arrangements
Not applicable
27. Structured Settlements
Not applicable
28. Health Care Receivables
Not applicable
29. Participating Policies
Not applicable
30. Premium Deficiency Reserves
No significant change
31. Reserves for Life Contracts and Annuity Contracts
No significant change
32. Analysis of Annuity Actuarial Reserves and Deposit-Type Liabilities by Withdrawal Characteristics
No significant change
33. Premium & Annuity Considerations Deferred and Uncollected
No significant change
34. Separate Accounts
Not applicable
35. Loss/Claim Adjustment Expenses
No significant change
7.14 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY GENERAL INTERROGATORIES
PART 1 - COMMON INTERROGATORIES
GENERAL
1.1 Did the reporting entity experience any material transactions requiring the filing of Disclosure of Material Transactions with the State of Domicile, as required by the Model Act? Yes [ ] No [ X ]
1.2 If yes, has the report been filed with the domiciliary state? Yes [ ] No [ ]
2.1 Has any change been made during the year of this statement in the charter, by-laws, articles of incorporation, or deed of settlement of the reporting entity? Yes [ ] No [ X ]
2.2 If yes, date of change:
3.1 Is the reporting entity a member of an Insurance Holding Company System consisting of two or more affiliated persons, one or more of which is an insurer? Yes [ X ] No [ ] If yes, complete Schedule Y, Parts 1 and 1A.
3.2 Have there been any substantial changes in the organizational chart since the prior quarter end? Yes [ ] No [ X ]
3.3 If the response to 3.2 is yes, provide a brief description of those changes.
3.4 Is the reporting entity publicly traded or a member of a publicly traded group? Yes [ X ] No [ ]
3.5 If the response to 3.4 is yes, provide the CIK (Central Index Key) code issued by the SEC for the entity/group. 0000005513
4.1 Has the reporting entity been a party to a merger or consolidation during the period covered by this statement? Yes [ ] No [ X ]
4.2 If yes, provide the name of the entity, NAIC Company Code, and state of domicile (use two letter state abbreviation) for any entity that has ceased to exist as a result of the merger or consolidation.
1 2 3 Name of Entity NAIC Company Code State of Domicile
5. If the reporting entity is subject to a management agreement, including third-party administrator(s), managing general agent(s), attorney- in-fact, or similar agreement, have there been any significant changes regarding the terms of the agreement or principals involved? Yes [ ] No [ X ] N/A [ ] If yes, attach an explanation.
6.1 State as of what date the latest financial examination of the reporting entity was made or is being made. 12/31/2015
6.2 State the as of date that the latest financial examination report became available from either the state of domicile or the reporting entity. This date should be the date of the examined balance sheet and not the date the report was completed or released. 12/31/2015
6.3 State as of what date the latest financial examination report became available to other states or the public from either the state of domicile or the reporting entity. This is the release date or completion date of the examination report and not the date of the examination (balance sheet date). 06/30/2017
6.4 By what department or departments? Tennessee 6.5 Have all financial statement adjustments within the latest financial examination report been accounted for in a subsequent financial statement filed with Departments? Yes [ ] No [ ] N/A [ X ]
6.6 Have all of the recommendations within the latest financial examination report been complied with? Yes [ ] No [ ] N/A [ X ]
7.1 Has this reporting entity had any Certificates of Authority, licenses or registrations (including corporate registration, if applicable) suspended or revoked by any governmental entity during the reporting period? Yes [ ] No [ X ]
7.2 If yes, give full information:
8.1 Is the company a subsidiary of a bank holding company regulated by the Federal Reserve Board? Yes [ ] No [ X ]
8.2 If response to 8.1 is yes, please identify the name of the bank holding company.
8.3 Is the company affiliated with one or more banks, thrifts or securities firms? Yes [ ] No [ X ]
8.4 If response to 8.3 is yes, please provide below the names and location (city and state of the main office) of any affiliates regulated by a federal regulatory services agency [i.e. the Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC) and the Securities Exchange Commission (SEC)] and identify the affiliate's primary federal regulator.
1 2 3 4 5 6 Affiliate Name Location (City, State) FRB OCC FDIC SEC
8 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY GENERAL INTERROGATORIES
9.1 Are the senior officers (principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions) of the reporting entity subject to a code of ethics, which includes the following standards ? Yes [ X ] No [ ] (a) Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; (b) Full, fair, accurate, timely and understandable disclosure in the periodic reports required to be filed by the reporting entity; (c) Compliance with applicable governmental laws, rules and regulations; (d) The prompt internal reporting of violations to an appropriate person or persons identified in the code; and (e) Accountability for adherence to the code. 9.11 If the response to 9.1 is No, please explain:
9.2 Has the code of ethics for senior managers been amended ? Yes [ ] No [ X ] 9.21 If the response to 9.2 is Yes, provide information related to amendment(s).
9.3 Have any provisions of the code of ethics been waived for any of the specified officers ? Yes [ ] No [ X ] 9.31 If the response to 9.3 is Yes, provide the nature of any waiver(s).
FINANCIAL
10.1 Does the reporting entity report any amounts due from parent, subsidiaries or affiliates on Page 2 of this statement? Yes [ ] No [ X ] 10.2 If yes, indicate any amounts receivable from parent included in the Page 2 amount: $
INVESTMENT
11.1 Were any of the stocks, bonds, or other assets of the reporting entity loaned, placed under option agreement, or otherwise made available for use by another person? (Exclude securities under securities lending agreements.) Yes [ X ] No [ ] 11.2 If yes, give full and complete information relating thereto: The Company has $996,774, $283,285, $14,417,805 and $552,406 statement value in bonds that are held as collateral for open derivative contracts with CIBC, Deutsche Bank, JPMorgan Chase, and Unum Limited respectively. In addition, the Company has $20,500,000 and $120,241,535 statement value in bonds and commercial mortgage loans, respectively, held as collateral for FHLB funding agreements. 12. Amount of real estate and mortgages held in other invested assets in Schedule BA: $ 0 13. Amount of real estate and mortgages held in short-term investments: $ 0 14.1 Does the reporting entity have any investments in parent, subsidiaries and affiliates? Yes [ ] No [ X ] 14.2 If yes, please complete the following: 1 2 Prior Year-End Current Quarter Book/Adjusted Book/Adjusted Carrying Value Carrying Value 14.21 Bonds $ $ 14.22 Preferred Stock $ $ 14.23 Common Stock $ $ 14.24 Short-Term Investments $ $ 14.25 Mortgage Loans on Real Estate $ $ 14.26 All Other $ $ 14.27 Total Investment in Parent, Subsidiaries and Affiliates (Subtotal Lines 14.21 to 14.26) $ $ 14.28 Total Investment in Parent included in Lines 14.21 to 14.26 above $ $
15.1 Has the reporting entity entered into any hedging transactions reported on Schedule DB? Yes [ X ] No [ ] 15.2 If yes, has a comprehensive description of the hedging program been made available to the domiciliary state? Yes [ X ] No [ ] If no, attach a description with this statement.
8.1 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY GENERAL INTERROGATORIES
16. For the reporting entity’s security lending program, state the amount of the following as of the current statement date: 16.1 Total fair value of reinvested collateral assets reported on Schedule DL, Parts 1 and 2. $ 16.2 Total book adjusted/carrying value of reinvested collateral assets reported on Schedule DL, Parts 1 and 2 $ 16.3 Total payable for securities lending reported on the liability page. $ 0
17. Excluding items in Schedule E - Part 3 - Special Deposits , real estate, mortgage loans and investments held physically in the reporting entity’s offices, vaults or safety deposit boxes, were all stocks, bonds and other securities, owned throughout the current year held pursuant to a custodial agreement with a qualified bank or trust company in accordance with Section 1, III - General Examination Considerations, F. Outsourcing of Critical Functions, Custodial or Safekeeping Agreements of the NAIC Financial Condition Examiners Handbook? Yes [ X ] No [ ] 17.1 For all agreements that comply with the requirements of the NAIC Financial Condition Examiners Handbook, complete the following:
1 2 Name of Custodian(s) Custodian Address JP Morgan Chase Bank N.A. New York, NY
17.2 For all agreements that do not comply with the requirements of the NAIC Financial Condition Examiners Handbook, provide the name, location and a complete explanation: 1 2 3 Name(s) Location(s) Complete Explanation(s)
17.3 Have there been any changes, including name changes, in the custodian(s) identified in 17.1 during the current quarter? Yes [ ] No [ X ] 17.4 If yes, give full information relating thereto:
1 2 3 4 Old Custodian New Custodian Date of Change Reason
17.5 Investment management – Identify all investment advisors, investment managers, broker/dealers, including individuals that have the authority to make investment decisions on behalf of the reporting entity. For assets that are managed internally by employees of the reporting entity, note as such. ["…that have access to the investment accounts"; "…handle securities"] 1 2 Name of Firm or Individual Affiliation Provident Investment Management, LLC A JPMorgan Chase Bank N.A. U
17.5097 For those firms/individuals listed in the table for Question 17.5, do any firms/individuals unaffiliated with the reporting entity (i.e. designated with a "U") manage more than 10% of the reporting entity’s assets? Yes [ ] No [ X ]
17.5098 For firms/individuals unaffiliated with the reporting entity (i.e. designated with a "U") listed in the table for Question 17.5, does the total assets under management aggregate to more than 50% of the reporting entity’s assets? Yes [ ] No [ X ]
17.6 For those firms or individuals listed in the table for 17.5 with an affiliation code of "A" (affiliated) or "U" (unaffiliated), provide the information for the table below. 1 2 3 4 5 Investment Management Central Registration Agreement Depository Number Name of Firm or Individual Legal Entity Identifier (LEI) Registered With (IMA) Filed 108527 Provident Investment Management, LLC DS JPMorgan Chase Bank N.A. 815DZWZKVSZI1NUHU748 NO
18.1 Have all the filing requirements of the Purposes and Procedures Manual of the NAIC Investment Analysis Office been followed? Yes [ X ] No [ ] 18.2 If no, list exceptions:
19. By self-designating 5*GI securities, the reporting entity is certifying the following elements for each self-designated 5*GI security: a. Documentation necessary to permit a full credit analysis of the security does not exist. b. Issuer or obligor is current on all contracted interest and principal payments. c. The insurer has an actual expectation of ultimate payment of all contracted interest and principal. Has the reporting entity self-designated 5*GI securities? Yes [ ] No [ X ]
8.2 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY GENERAL INTERROGATORIES
PART 2 - LIFE & HEALTH
1. Report the statement value of mortgage loans at the end of this reporting period for the following categories: 1 Amount 1.1 Long-Term Mortgages In Good Standing
1.11 Farm Mortgages $
1.12 Residential Mortgages $
1.13 Commercial Mortgages $ 414,968,524
1.14 Total Mortgages in Good Standing $ 414,968,524
1.2 Long-Term Mortgages In Good Standing with Restructured Terms
1.21 Total Mortgages in Good Standing with Restructured Terms $
1.3 Long-Term Mortgage Loans Upon which Interest is Overdue more than Three Months
1.31 Farm Mortgages $
1.32 Residential Mortgages $
1.33 Commercial Mortgages $ 3,419,390
1.34 Total Mortgages with Interest Overdue more than Three Months $ 3,419,390
1.4 Long-Term Mortgage Loans in Process of Foreclosure
1.41 Farm Mortgages $
1.42 Residential Mortgages $
1.43 Commercial Mortgages $
1.44 Total Mortgages in Process of Foreclosure $
1.5 Total Mortgage Loans (Lines 1.14 + 1.21 + 1.34 + 1.44) (Page 2, Column 3, Lines 3.1 + 3.2) $ 418,387,914
1.6 Long-Term Mortgages Foreclosed, Properties Transferred to Real Estate in Current Quarter
1.61 Farm Mortgages $
1.62 Residential Mortgages $
1.63 Commercial Mortgages $
1.64 Total Mortgages Foreclosed and Transferred to Real Estate $
2. Operating Percentages:
2.1 A&H loss percent 30.600 %
2.2 A&H cost containment percent 2.700 %
2.3 A&H expense percent excluding cost containment expenses 33.000 %
3.1 Do you act as a custodian for health savings accounts? Yes [ ] No [ X ]
3.2 If yes, please provide the amount of custodial funds held as of the reporting date $
3.3 Do you act as an administrator for health savings accounts? Yes [ ] No [ X ]
3.4 If yes, please provide the balance of the funds administered as of the reporting date $
4. Is the reporting entity licensed or chartered, registered, qualified, eligible or writing business in at least two states? Yes [ X ] No [ ]
4.1 If no, does the reporting entity assume reinsurance business that covers risks residing in at least one state other than the state of domicile of the reporting entity? Yes [ ] No [ ]
9 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE S - CEDED REINSURANCE Showing All New Reinsurance Treaties - Current Year to Date 1 2 3 4 5 6 7 8 9 Effective Certified Date of NAIC Type of Reinsurer Certified Company ID Effective Domiciliary Reinsurance Rating Reinsurer Code Number Date Name of Reinsurer Jurisdiction Ceded Type of Reinsurer (1 through 6) Rating Life & Annuity - Non-Affiliates 00000 AA-1120097 01/01/2018 Lloyd's Syndicate Number 2468 (Acappella Consortium 9938) GBR CAT/G Authorized 00000 AA-1120116 01/01/2018 Lloyd's Syndicate Number 3902 (Acappella Consortium 9938) GBR CAT/G Authorized 00000 AA-1120113 01/01/2018 Lloyd's Syndicate Number 3334 HAM GBR CAT/G Authorized 00000 AA-1120159 01/01/2018 TransRe London Limited GBR CAT/G Authorized Accident & Health - Non-Affiliates 00000 AA-1120097 01/01/2018 Lloyd's Syndicate Number 2468 (Acappella Consortium 9938) GBR CAT/G Authorized 00000 AA-1120116 01/01/2018 Lloyd's Syndicate Number 3902 (Acappella Consortium 9938) GBR CAT/G Authorized 00000 AA-1120113 01/01/2018 Lloyd's Syndicate Number 3334 HAM GBR CAT/G Authorized 00000 AA-1120159 01/01/2018 TransRe London Limited GBR CAT/G Authorized
10 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE T - PREMIUMS AND ANNUITY CONSIDERATIONS Current Year To Date - Allocated by States and Territories Direct Business Only 1 Life Contracts 4 5 6 7 2 3 Accident and Health Insurance Premiums, Active Including Policy, Total Status Life Insurance Annuity Membership Other Columns Deposit-Type States, Etc. (a) Premiums Considerations and Other Fees Considerations 2 Through 5 Contracts 1. Alabama AL L 8,303,035 293 9,600,691 17,904,019 2. Alaska AK L 57,136 603,192 660,327 3. Arizona AZ L 2,843,670 8,780,062 11,623,732 4. Arkansas AR L 5,107,292 4,825,892 9,933,185 2,500 5. California CA L 14,585,540 61,644,533 76,230,073 6. Colorado CO L 1,774,642 22 7,134,113 8,908,777 7. Connecticut CT L 2,113,807 7,357,172 9,470,979 8. Delaware DE L 660,676 1,577,607 2,238,284 9. District of Columbia DC L 485,305 3,657,251 4,142,556 10. Florida FL L 12,372,887 19,798 35,294,765 47,687,450 11. Georgia GA L 19,167,415 3,411 21,154,891 40,325,717 12. Hawaii HI L 1,050,137 3,516,498 4,566,635 13. Idaho ID L 510,746 725 1,158,249 1,669,721 14. Illinois IL L 6,888,687 23,390,277 30,278,964 15. Indiana IN L 4,905,567 6,524,854 11,430,420 300 16. Iowa IA L 1,727,830 2,598,773 4,326,603 17. Kansas KS L 1,664,185 3,934,209 5,598,394 18. Kentucky KY L 3,419,252 764 5,396,496 8,816,512 19. Louisiana LA L 5,901,769 1,350 7,742,244 13,645,363 20. Maine ME L 853,077 2,388,336 3,241,413 21. Maryland MD L 6,335,081 84 20,067,279 26,402,444 22. Massachusetts MA L 3,356,547 45 19,845,015 23,201,606 23. Michigan MI L 5,455,142 22,052,173 27,507,315 24. Minnesota MN L 2,289,381 10,955,622 13,245,003 25. Mississippi MS L 3,609,291 5,065,947 8,675,238 26. Missouri MO L 3,390,709 10,752,101 14,142,811 27. Montana MT L 260,754 854,528 1,115,281 28. Nebraska NE L 1,114,180 187 2,502,032 3,616,398 29. Nevada NV L 1,133,314 2,755,953 3,889,267 30. New Hampshire NH L 541,690 2,330,157 2,871,847 31. New Jersey NJ L 4,354,087 26,716,929 31,071,016 32. New Mexico NM L 974,258 1,724 1,774,386 2,750,368 33. New York NY N 463,989 4,106,049 4,570,037 34. North Carolina NC L 22,433,944 2,453 19,021,511 41,457,908 35. North Dakota ND L 490,915 636,844 1,127,759 36. Ohio OH L 13,147,204 17,396,531 30,543,735 37. Oklahoma OK L 1,771,264 101 2,670,886 4,442,252 38. Oregon OR L 1,158,851 6,510,377 7,669,228 39. Pennsylvania PA L 7,245,243 607 29,238,973 36,484,823 40. Rhode Island RI L 354,612 1,606,749 1,961,361 41. South Carolina SC L 8,041,042 1,697 8,186,025 16,228,764 42. South Dakota SD L 847,177 1,421,945 2,269,122 43. Tennessee TN L 14,231,855 10,932 12,981,975 27,224,762 44. Texas TX L 18,646,902 35,477,641 54,124,543 1,350 45. Utah UT L 947,164 1,657,842 2,605,006 46. Vermont VT L 483,593 937,484 1,421,077 47. Virginia VA L 7,773,998 16,181,896 23,955,894 48. Washington WA L 2,152,500 13,667,917 15,820,417 49. West Virginia WV L 1,601,126 1,775,717 3,376,844 50. Wisconsin WI L 3,167,234 1,530 6,929,544 10,098,308 51. Wyoming WY L 338,374 610,824 949,199 52. American Samoa AS N 53. Guam GU N 18 1,334 1,352 54. Puerto Rico PR L 9,685 167,243 176,928 55. U.S. Virgin Islands VI N 1,936 15,556 17,492 56. Northern Mariana Islands MP N 57. Canada CAN N 7,760 71,319 79,078 58. Aggregate Other Aliens OT XXX 18,293 200,591 218,884 59. Subtotal XXX 232,541,770 45,724 525,424,998 758,012,492 4,150 90. Reporting entity contributions for employee benefits plans XXX 91. Dividends or refunds applied to purchase paid-up additions and annuities XXX 14,031 14,031 92. Dividends or refunds applied to shorten endowment or premium paying period XXX 93. Premium or annuity considerations waived under disability or other contract provisions XXX 1,110,289 13,168,377 14,278,666 94. Aggregate or other amounts not allocable by State XXX (102,255) (102,255) 95. Totals (Direct Business) XXX 233,563,835 45,724 538,593,375 772,202,934 4,150 96. Plus Reinsurance Assumed XXX 507,414 6,131,296 6,638,710 97 Totals (All Business) XXX 234,071,249 45,724 544,724,672 778,841,644 4,150 98. Less Reinsurance Ceded XXX 32,758,200 45,724 168,108,715 200,912,638 4,150 99. Totals (All Business) less Reinsurance Ceded XXX 201,313,049 376,615,957 577,929,006 DETAILS OF WRITE-INS 58001. AUS AUSTRALIA XXX 3,164 1,442 4,606 58002. AUT AUSTRIA XXX 830 830 58003. BHS BAHAMAS XXX 1,471 1,471 58998. Summary of remaining write-ins for Line 58 from overflow page XXX 15,129 196,848 211,977 58999. Totals (Lines 58001 through 58003 plus 58998)(Line 58 above) XXX 18,293 200,591 218,884 9401. Aggregate of other amounts not allocable by State XXX (102,255) (102,255) 9402. XXX 9403. XXX 9498. Summary of remaining write-ins for Line 94 from overflow page XXX 9499. Totals (Lines 9401 through 9403 plus 9498)(Line 94 above) XXX (102,255) (102,255) (a) Active Status Counts: L - Licensed or Chartered - Licensed Insurance carrier or domiciled RRG 51 R - Registered - Non-domiciled RRGs E - Eligible - Reporting entities eligible or approved to write surplus lines in the state Q - Qualified - Qualified or accredited reinsurer N - None of the above - Not allowed to write business in the state 6
11 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY
SCHEDULE Y - INFORMATION CONCERNING ACTIVITIES OF INSURER MEMBERS OF A HOLDING COMPANY GROUP PART 1 - ORGANIZATIONAL CHART
Unum Group (DE) FEIN: 62-1598430
Provident Life Unum Life Colonial Life The Paul Provident Life First Unum Fairwind Unum and Accident Insurance Unum & Accident Revere Life and Casualty Provident Provident Life Insurance Insurance Northwind Insurance Insurance Company Duncanson European Insurance Insurance Insurance Investment Financing H&J Capital, LeaveLogic, Company UnumProvident Company Holdings, Company Company of America & Holt, Inc. Holding Company Company Company Management, Trust I L.L.C. Inc. UDVAS, LLC (NY) Finance (VT) LLC (ME) (TN) (ME) (NY) Company (SC) (MA) (TN) LLC (DE) (LA) (DE) (DE) FEIN: Company Limited FEIN: (DE) FEIN: FEIN: FEIN: FEIN: Limited FEIN: FEIN: FEIN: (TN) FEIN: FEIN: FEIN: 13-1898173 (England) 98-0179389 FEIN: 04-2381280 62-0331200 01-0278678 13-2588770 (England) 57-0144607 04-1768571 62-0506281 FEIN: 52-6894896 72-0977314 47-3892324 NAIC: NAIC: 26-0702757 NAIC: NAIC: NAIC: [3] NAIC: NAIC: NAIC: 62-1705665 [5] 64297 15463 67601 68195 62049 62235 67598 [2] 68209 12
Northwind Duncanson Unum Unum Ireland National Dental Reinsurance & Holt Limited Limited Plan Limited Company Services, Inc. (England) (Ireland) (England) (VT) (ME) [4] FEIN: First Look FEIN: AlwaysCare 26-0702523 Vision 01-0358803 Benefits, Inc. NAIC: Network, L.L.C. (LA) Claims Services 13031 (MO) Claims FEIN: International FEIN: Assistance (UK) 72-1146709 Limited 20-1373510 Duncanson (England) Limited & Holt (England) Canada Ltd. [1] (Canada) Percentage of ownership is 100% unless otherwise indicated : Starmount Life Starmount [1] 50% owned by Unum European Holding Company Limited, and 50% owned by Unum Limited Insurance Unum Select Insurance Company (LA) Limited [2] 85.9% owned by Unum Group, 10.1% owned by The Paul Revere Life Insurance Company, Agency, Inc. FEIN: Duncanson (England) and 4.0% owned by Unum Life Insurance Company of America (LA) 72-0977315 & Holt [3] 80% owned by Unum Group, and 20% owned by UnumProvident Finance Company Limited FEIN: NAIC: Underwriters [4] 72% owned by Unum European Holding Company Limited, and 28% owned by UnumProvident 72-0809131 68985 Ltd. Finance Company Limited (England) [5] Statutory business trust which issued common and preferred securities representing undivided beneficial interests in the assets of the trusts. Unum Group owns 100% of the common securities.
Duncanson & Holt Europe Ltd. (England)
STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE Y PART 1A - DETAIL OF INSURANCE HOLDING COMPANY SYSTEM 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Type If of Control Control (Ownership, is Is an Name of Securities Relation- Board, Owner- SCA Exchange Domi- ship Management, ship Filing NAIC if Publicly Traded Names of ciliary to Attorney-in-Fact, Provide Re- Group Company ID Federal (U.S. or Parent, Subsidiaries Loca- Reporting Directly Controlled by Influence, Percen- Ultimate Controlling quired? Code Group Name Code Number RSSD CIK International) Or Affiliates tion Entity (Name of Entity/Person) Other) tage Entity(ies)/Person(s) (Y/N) * 00000 62-1598430 0000005513 NYSE Unum Group DE UDP 0.000 N 0565 Unum Group 64297 13-1898173 First Unum Life Insurance Company NY IA Unum Group Ownership 100.000 Unum Group N 0565 Unum Group 62235 01-0278678 Unum Life Insurance Company of America ME IA Unum Group Ownership 100.000 Unum Group N Unum Group 00000 13-2588770 Duncanson & Holt, Inc. NY NIA Unum Group Ownership 100.000 Unum Group N Unum Group 00000 01-0358803 Duncanson & Holt Services, Inc. ME NIA Duncanson & Holt, Inc. Ownership 100.000 Unum Group N Unum Group 00000 Duncanson & Holt Canada Ltd. CAN NIA Duncanson & Holt, Inc. Ownership 100.000 Unum Group N Unum Group 00000 Duncanson & Holt Underwriters Ltd. GBR NIA Duncanson & Holt, Inc. Ownership 100.000 Unum Group N Unum Group 00000 Duncanson & Holt Europe Ltd. GBR NIA Duncanson & Holt, Inc. Ownership 100.000 Unum Group N Unum Group 00000 Unum European Holding Company Limited GBR NIA Unum Group Ownership 80.000 Unum Group N 0000009 Unum Group 00000 Unum European Holding Company Limited GBR NIA UnumProvident Finance Company Limited Ownership 20.000 Unum Group N 0000010 Unum Group 00000 Unum Limited GBR IA Unum European Holding Company Limited Ownership 72.000 Unum Group N 0000011 Unum Group 00000 Unum Limited GBR IA UnumProvident Finance Company Limited Ownership 28.000 Unum Group N 0000012 Unum Group 00000 Claims Services International Limited GBR NIA Unum European Holding Company Limited Ownership 50.000 Unum Group N 0000013 Unum Group 00000 Claims Services International Limited GBR NIA Unum Limited Ownership 50.000 Unum Group N 0000014 Unum Group 00000 Unum Select Limited GBR NIA Unum European Holding Company Limited Ownership 100.000 Unum Group N Unum Group 00000 UnumProvident Finance Company Limited GBR NIA Unum Group Ownership 100.000 Unum Group N Unum Group 00000 Unum Ireland Limited IRL NIA UnumProvident Finance Company Limited Ownership 100.000 Unum Group N 0565 Unum Group 62049 57-0144607 Colonial Life & Accident Insurance Company SC IA Unum Group Ownership 100.000 Unum Group N Unum Group 15463 98-0179389 Fairwind Insurance Company VT IA Unum Group Ownership 100.000 Unum Group N
13 0565 Unum Group 67598 04-1768571 The Paul Revere Life Insurance Company MA IA Unum Group Ownership 100.000 Unum Group N 0565 Unum Group 67601 04-2381280 Unum Insurance Company ME IA Unum Group Ownership 100.000 Unum Group N Provident Life and Accident Insurance Company 0565 Unum Group 68195 62-0331200 TN RE Unum Group Ownership 85.900 Unum Group N 0000022 Provident Life and Accident Insurance Company 0565 Unum Group 68195 62-0331200 TN RE The Paul Revere Life Insurance Company Ownership 10.100 Unum Group N 0000023 Provident Life and Casualty Insurance Company 0565 Unum Group 68209 62-0506281 TN IA Unum Group Ownership 100.000 Unum Group N Unum Group 00000 62-1705665 Provident Investment Management, LLC TN NIA Unum Group Ownership 100.000 Unum Group N Unum Group 00000 26-0702757 Northwind Holdings, LLC DE NIA Unum Group Ownership 100.000 Unum Group N 0565 Unum Group 13031 26-0702523 Northwind Reinsurance Company VT IA Northwind Holdings, LLC Ownership 100.000 Unum Group N Unum Group 00000 52-6894896 Provident Financing Trust I DE NIA Unum Group Ownership 100.000 Unum Group N 0000028 Unum Group 00000 National Dental Plan Limited GBR NIA Unum European Holding Company Limited Ownership 100.000 Unum Group N Unum Group 00000 Claims Assistance (UK) Limited GBR NIA Unum European Holding Company Limited Ownership 100.000 Unum Group N Unum Group 00000 72-0977314 H&J Capital, L.L.C. LA NIA Unum Group Ownership 100.000 Unum Group N Unum Group 00000 72-0809131 Starmount Insurance Agency, Inc. LA NIA H&J Capital, L.L.C. Ownership 100.000 Unum Group N 0565 Unum Group 68985 72-0977315 Starmount Life Insurance Company LA IA H&J Capital, L.L.C. Ownership 100.000 Unum Group N Unum Group 00000 72-1146709 AlwaysCare Benefits, Inc. LA NIA H&J Capital, L.L.C. Ownership 100.000 Unum Group N Unum Group 00000 20-1373510 First Look Vision Network, L.L.C. MO NIA H&J Capital, L.L.C. Ownership 100.000 Unum Group N Unum Group 00000 47-3892324 LeaveLogic, Inc. DE NIA Unum Group Ownership 100.000 Unum Group N Unum Group 00000 UDVAS, LLC DE NIA Unum Group Ownership 100.000 Unum Group N
Asterisk Explanation 0000009 80% owned by Unum Group and 20% owned by UnumProvident Finance Company Limited. 0000010 80% owned by Unum Group and 20% owned by UnumProvident Finance Company LImited. 0000011 72% owned by Unum European Holding Company Limited and 28% owned by UnumProvident Finance Company Limited. 0000012 72% owned by Unum European Holding Company Limited and 28% owned by UnumProvident Finance Company Limited. 0000013 50% owned by Unum European Holding Company Limited and 50% owned by Unum Limited. 0000014 50% owned by Unum European Holding Company Limited and 50% owned by Unum Limited. 0000022 85.9% owned by Unum Group, 10.1% owned by The Paul Revere Life Insurance Company and 4.0% owned by Unum Life Insurance Company of America. 0000023 85.9% owned by Unum Group, 10.1% owned by The Paul Revere Life Insurance Company and 4.0% owned by Unum Life Insurance Company of America. STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY
Asterisk Explanation 0000028 Statutory business trust which issued common and preferred securities representing undivided beneficial interests in the assets of the trust. Unum Group owns 100% of the common securities.
13.1 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SUPPLEMENTAL EXHIBITS AND SCHEDULES INTERROGATORIES
The following supplemental reports are required to be filed as part of your statement filing. However, in the event that your company does not transact the type of business for which the special report must be filed, your response of NO to the specific interrogatory will be accepted in lieu of filing a “NONE” report and a bar code will be printed below. If the supplement is required of your company but is not being filed for whatever reason enter SEE EXPLANATION and provide an explanation following the interrogatory questions.
Response
1. Will the Trusteed Surplus Statement be filed with the state of domicile and the NAIC with this statement? NO 2. Will the Medicare Part D Coverage Supplement be filed with the state of domicile and the NAIC with this statement ? NO 3. Will the Reasonableness of Assumptions Certification required by Actuarial Guideline XXXV be filed with the state of domicile and electronically with the NAIC ? NO 4. Will the Reasonableness and Consistency of Assumptions Certification required by Actuarial Guideline XXXV be filed with the state of domicile and electronically with the NAIC ? NO 5. Will the Reasonableness of Assumptions Certification for Implied Guaranteed Rate Method required by Actuarial Guideline XXXVI be filed with the state of domicile and electronically with the NAIC? NO 6. Will the Reasonableness and Consistency of Assumptions Certification required by Actuarial Guideline XXXVI (Updated Average Market Value) be filed with the state of domicile and electronically with the NAIC? NO 7. Will the Reasonableness and Consistency of Assumptions Certification required by Actuarial Guideline XXXVI (Updated Market Value) be filed with the state of domicile and electronically with the NAIC? NO
Explanation:
1.
2.
3.
4.
5.
6.
7.
Bar Code: 1. Trusteed Surplus Statement [Document Identifier 490] *68195201849000003* 2. Medicare Part D Coverage Supplement [Document Identifier 365] *68195201836500003* 3. Reasonableness of Assumptions Certification required by Actuarial Guideline XXXV [Document Identifier 445] *68195201844500003* 4. Reasonableness and Consistency of Assumptions Certification required by Actuarial Guideline XXXV [Document Identifier 446] *68195201844600003* 5. Reasonableness of Assumptions Certification for Implied Guaranteed Rate Method required by Actuarial Guideline XXXVI [Document Identifier 447] *68195201844700003* 6. Reasonableness and Consistency of Assumptions Certification required by Actuarial Guideline XXXVI [Document Identifier 448] *68195201844800003* 7. Reasonableness and Consistency of Assumptions Certification required by Actuarial Guideline XXXVI (Updated Market Value) [Document Identifier 449] *68195201844900003*
14 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY OVERFLOW PAGE FOR WRITE-INS
Additional Write-ins for Assets Line 25 Current Statement Date 4 1 2 3 December 31 Net Admitted Assets Prior Year Net Assets Nonadmitted Assets (Cols. 1 - 2) Admitted Assets 2504. Receivables for investment income 2,587,185 2,587,185 2,473,268 2505. Other tax receivables 516,176 516,176 1,311,093 2597. Summary of remaining write-ins for Line 25 from overflow page 3,103,361 3,103,361 3,784,360
Additional Write-ins for Liabilities Line 25 1 2 Current December 31 Statement Date Prior Year 2504. Cash collateral on derivatives 10,010,000 9,400,000 2505. Other miscellaneous liabilities 349,013 508,673 2597. Summary of remaining write-ins for Line 25 from overflow page 10,359,013 9,908,673
Additional Write-ins for Summary of Operations Line 8.3 1 2 3 Current Year Prior Year Prior Year Ended To Date To Date December 31 08.304. Income from assumed modco reinsurance 105,866 71,862 101,453 08.397. Summary of remaining write-ins for Line 8.3 from overflow page 105,866 71,862 101,453
Additional Write-ins for Summary of Operations Line 27 1 2 3 Current Year Prior Year Prior Year Ended To Date To Date December 31 2704. Transfers on account of group package policies 542,849 467,230 991,810 2705. Fines and penalties paid to regulatory authorities 10,944 45 45 2706. Interest on federal income tax refund 346 0 0 2797. Summary of remaining write-ins for Line 27 from overflow page 554,140 467,276 991,855
Additional Write-ins for Schedule T Line 58 Direct Business Only 1 Life Contracts 4 5 6 7 2 3 Accident and Health Insurance Premiums, Including Policy, Total Active Life Insurance Annuity Membership Other Columns Deposit-Type States, Etc. Status Premiums Considerations and Other Fees Considerations 2 Through 5 Contracts 58004. BEL BELGIUM XXX 429 3,275 3,704 58005. CYM CAYMAN ISLANDS XXX 156 156 58006. CHN CHINA XXX 28,513 28,513 58007. CRI COSTA RICA XXX 309 309 58008. FRA FRANCE XXX 3,894 9,240 13,134 58009. DEU GERMANY XXX 601 8,535 9,136 58010. GRC GREECE XXX 2,624 2,624 58011. GTM GUATEMALA XXX 324 324 58012. HKG HONG KONG XXX 3,449 20,795 24,243 58013. IND INDIA XXX 1,552 1,552 58014. IRL IRELAND XXX 4,026 4,026 58015. ISR ISRAEL XXX (700) 1,311 611 58016. ITA ITALY XXX 457 457 58017. JPN JAPAN XXX 26,881 26,881 58018. JOR JORDAN XXX 2,000 2,000 58019. KOR KOREA, REPUBLIC OF XXX 523 523 58020. LUX LUXEMBOURG XXX 1,294 1,294 58021. NLD NETHERLANDS XXX 414 3,528 3,942 58022. NZL NEW ZEALAND XXX 6,766 6,766 58023. PHL PHILIPPINES XXX 646 646 58024. ROM ROMANIA XXX 226 226 58025. SGP SINGAPORE XXX 359 15,859 16,218 58026. ESP SPAIN XXX 1,391 1,391 58027. SWE SWEDEN XXX 492 492 58028. CHE SWITZERLAND XXX 13,634 13,634 58029. THA THAILAND XXX 86 86 58030. UGA UGANDA XXX 290 290 58031. ARE UNITED ARAB EMIRATES XXX 7,029 7,029 58032. GBR UNITED KINGDOM XXX 1,687 40,082 41,769 58997. Summary of remaining write-ins for Line 58 from overflow page XXX 15,129 196,848 211,977
15 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE A - VERIFICATION Real Estate 1 2 Prior Year Ended Year to Date December 31 1. Book/adjusted carrying value, December 31 of prior year 71,837,286 73,955,347 2. Cost of acquired: 2.1 Actual cost at time of acquisition 2.2 Additional investment made after acquisition 3,226,628 3,003,817 3. Current year change in encumbrances 4. Total gain (loss) on disposals 205,651 5. Deduct amounts received on disposals 431,419 6. Total foreign exchange change in book/adjusted carrying value 7. Deduct current year’s other than temporary impairment recognized 8. Deduct current year’s depreciation 3,629,008 4,896,110 9. Book/adjusted carrying value at the end of current period (Lines 1+2+3+4-5+6-7-8) 71,434,906 71,837,286 10. Deduct total nonadmitted amounts 11. Statement value at end of current period (Line 9 minus Line 10) 71,434,906 71,837,286
SCHEDULE B - VERIFICATION Mortgage Loans 1 2 Prior Year Ended Year to Date December 31 1. Book value/recorded investment excluding accrued interest, December 31 of prior year 441,382,128 449,738,469 2. Cost of acquired: 2.1 Actual cost at time of acquisition 15,500,000 61,987,500 2.2 Additional investment made after acquisition 3. Capitalized deferred interest and other 4. Accrual of discount 5. Unrealized valuation increase (decrease) 6. Total gain (loss) on disposals 7. Deduct amounts received on disposals 38,260,214 70,343,841 8. Deduct amortization of premium and mortgage interest points and commitment fees 9. Total foreign exchange change in book value/recorded investment excluding accrued interest 10. Deduct current year’s other than temporary impairment recognized 234,000 11. Book value/recorded investment excluding accrued interest at end of current period (Lines 1+2+3+4+5+6-7-8+9-10) 418,387,914 441,382,128 12. Total valuation allowance 13. Subtotal (Line 11 plus Line 12) 418,387,914 441,382,128 14. Deduct total nonadmitted amounts 15. Statement value at end of current period (Line 13 minus Line 14) 418,387,914 441,382,128
SCHEDULE BA - VERIFICATION Other Long-Term Invested Assets 1 2 Prior Year Ended Year to Date December 31 1. Book/adjusted carrying value, December 31 of prior year 134,444,340 151,170,150 2. Cost of acquired: 2.1 Actual cost at time of acquisition 2.2 Additional investment made after acquisition 1,642,778 2,273,356 3. Capitalized deferred interest and other 4. Accrual of discount 2,658 3,375 5. Unrealized valuation increase (decrease) (207,877) 634,299 6. Total gain (loss) on disposals 7. Deduct amounts received on disposals 3,313,956 4,209,636 8. Deduct amortization of premium and depreciation 13,309,727 15,427,204 9. Total foreign exchange change in book/adjusted carrying value 10. Deduct current year’s other than temporary impairment recognized 11. Book/adjusted carrying value at end of current period (Lines 1+2+3+4+5+6-7-8+9-10) 119,258,216 134,444,340 12. Deduct total nonadmitted amounts 13. Statement value at end of current period (Line 11 minus Line 12) 119,258,216 134,444,340
SCHEDULE D - VERIFICATION Bonds and Stocks 1 2 Prior Year Ended Year to Date December 31 1. Book/adjusted carrying value of bonds and stocks, December 31 of prior year 6,679,669,728 6,811,584,533 2. Cost of bonds and stocks acquired 387,037,208 431,565,582 3. Accrual of discount 24,935,016 32,287,579 4. Unrealized valuation increase (decrease) 1,750 (1,750) 5. Total gain (loss) on disposals 4,969,119 2,017,085 6. Deduct consideration for bonds and stocks disposed of 471,532,928 598,706,285 7. Deduct amortization of premium 3,730,809 5,520,764 8. Total foreign exchange change in book/adjusted carrying value (4,262,811) 6,443,748 9. Deduct current year’s other than temporary impairment recognized 10. Total investment income recognized as a result of prepayment penalties and/or acceleration fees 11. Book/adjusted carrying value at end of current period (Lines 1+2+3+4+5-6-7+8-9+10) 6,617,086,273 6,679,669,728 12. Deduct total nonadmitted amounts 13. Statement value at end of current period (Line 11 minus Line 12) 6,617,086,273 6,679,669,728
SI01 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE D - PART 1B Showing the Acquisitions, Dispositions and Non-Trading Activity During the Current Quarter for all Bonds and Preferred Stock by NAIC Designation 1 2 3 4 5 6 7 8 Book/Adjusted Book/Adjusted Book/Adjusted Book/Adjusted Book/Adjusted Carrying Value Acquisitions Dispositions Non-Trading Activity Carrying Value Carrying Value Carrying Value Carrying Value Beginning During During During End of End of End of December 31 NAIC Designation of Current Quarter Current Quarter Current Quarter Current Quarter First Quarter Second Quarter Third Quarter Prior Year
BONDS
1. NAIC 1 (a) 2,844,933,070 115,607,230 157,596,258 54,682,980 2,904,835,818 2,844,933,070 2,857,627,022 2,842,530,224 2. NAIC 2 (a) 3,296,999,926 1,999,625,611 1,972,290,320 (51,401,162) 3,215,936,595 3,296,999,926 3,272,934,055 3,253,378,850 3. NAIC 3 (a) 345,825,107 5,873,312 3,190,703 344,010,235 345,825,107 343,142,498 352,375,469 4. NAIC 4 (a) 123,621,343 6,800,000 (9,337,772) 104,181,203 123,621,343 107,483,571 118,193,176 5. NAIC 5 (a) 9,682,817 2,117,438 12,177,208 34,084,561 9,682,817 19,742,587 26,662,965 6. NAIC 6 (a) 369,250 369,250 369,250 369,250 367,500 7. Total Bonds 6,621,431,513 2,115,232,841 2,144,677,328 9,311,957 6,603,417,662 6,621,431,513 6,601,298,983 6,593,508,184
SI02
PREFERRED STOCK
8. NAIC 1 89,666,408 89,666,408 89,666,408 89,666,408 89,666,408 9. NAIC 2 183,600 183,600 183,600 183,600 183,600 10. NAIC 3 11. NAIC 4 12. NAIC 5 13. NAIC 6 14. Total Preferred Stock 89,850,008 89,850,008 89,850,008 89,850,008 89,850,008 15. Total Bonds and Preferred Stock 6,711,281,521 2,115,232,841 2,144,677,328 9,311,957 6,693,267,670 6,711,281,521 6,691,148,991 6,683,358,192 (a) Book/Adjusted Carrying Value column for the end of the current reporting period includes the following amount of short-term and cash equivalent bonds by NAIC designation: NAIC 1 $ ; NAIC 2 $ 88,617,318 ; NAIC 3 $ NAIC 4 $ ; NAIC 5 $ ; NAIC 6 $ STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE DA - PART 1 Short-Term Investments 1 2 3 4 5 Paid for Book/Adjusted Interest Collected Accrued Interest Carrying Value Par Value Actual Cost Year-to-Date Year-to-Date 9199999 Totals NONEXXX SCHEDULE DA - VERIFICATION Short-Term Investments 1 2
Prior Year Ended Year To Date December 31
1. Book/adjusted carrying value, December 31 of prior year 0 293,671
2. Cost of short-term investments acquired 2,352,153
3. Accrual of discount
4. Unrealized valuation increase (decrease)
5. Total gain (loss) on disposals
6. Deduct consideration received on disposals 2,645,824
7. Deduct amortization of premium
8. Total foreign exchange change in book/adjusted carrying value
9. Deduct current year’s other than temporary impairment recognized
10. Book/adjusted carrying value at end of current period (Lines 1+2+3+4+5-6-7+8-9) 0 0
11. Deduct total nonadmitted amounts
12. Statement value at end of current period (Line 10 minus Line 11) 0 0
SI03 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE DB - PART A - VERIFICATION Options, Caps, Floors, Collars, Swaps and Forwards
1. Book/Adjusted Carrying Value, December 31, prior year (Line 9, prior year) (5,710,142)
2. Cost Paid/(Consideration Received) on additions 735,885
3. Unrealized Valuation increase/(decrease) 1,594,007
4. Total gain (loss) on termination recognized 145,414
5. Considerations received/(paid) on terminations 3,007,523
6. Amortization
7. Adjustment to the Book/Adjusted Carrying Value of hedged item 4,375,814
8. Total foreign exchange change in Book/Adjusted Carrying Value 1,294,215
9. Book/Adjusted Carrying Value at End of Current Period (Lines 1+2+3+4-5+6+7+8) (572,330)
10. Deduct nonadmitted assets
11. Statement value at end of current period (Line 9 minus Line 10) (572,330)
SCHEDULE DB - PART B - VERIFICATION Futures Contracts
1. Book/Adjusted carrying value, December 31 of prior year (Line 6, prior year)
2. Cumulative cash change (Section 1, Broker Name/Net Cash Deposits Footnote - Cumulative Cash Change column)
3.1 Add:
Change in variation margin on open contracts - Highly Effective Hedges
3.11 Section 1, Column 15, current year to date minus
3.12 Section 1, Column 15, prior year
Change in variation margin on open contracts - All Other
3.13 Section 1, Column 18, current year to date minus
3.14 Section 1, Column 18, prior year
3.2 Add:
Change in adjustment to basis of hedged item
3.21 Section 1, Column 17, current year to date minus
3.22 Section 1, Column 17, prior year
Change in amount recognized
3.23 Section 1, Column 19, current year to date minus 3.24 Section 1, Column 19, prior year NONE 3.3 Subtotal (Line 3.1 minus Line 3.2)
4.1 Cumulative variation margin on terminated contracts during the year
4.2 Less:
4.21 Amount used to adjust basis of hedged item
4.22 Amount recognized
4.3 Subtotal (Line 4.1 minus Line 4.2)
5. Dispositions gains (losses) on contracts terminated in prior year:
5.1 Total gain (loss) recognized for terminations in prior year
5.2 Total gain (loss) adjusted into the hedged item(s) for terminations in prior year
6. Book/Adjusted carrying value at end of current period (Lines 1+2+3.3-4.3-5.1-5.2)
7. Deduct total nonadmitted amounts
8. Statement value at end of current period (Line 6 minus Line 7)
SI04 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE DB - PART C - SECTION 1 Replication (Synthetic Asset) Transactions Open as of Current Statement Date Replication (Synthetic Asset) Transactions Components of the Replication (Synthetic Asset) Transactions 1 2 3 4 5 6 7 8 Derivative Instrument(s) Open Cash Instrument(s) Held 9 10 11 12 13 14 15 16 NAIC NAIC Designation or Book/Adjusted Book/Adjusted Designation or Book/Adjusted Other Notional Carrying Effective Maturity Carrying Other Carrying Number Description Description Amount Value Fair Value Date Date Description Value Fair Value CUSIP Description Description Value Fair Value WELLS FARGO BANK NA 1 13,714,606 4,998,088 5,046,676 12/20/2016 08/01/2023 WELLS FARGO BANK NA 23,926 026874-CY-1 AMERICAN INT'L GROUP 2 4,998,088 5,022,750 WELLS FARGO BANK NA 1 9,974,798 10,041,000 127387-AL-2 CADENCE DESIGN SYSTEMS INC 2 9,974,798 10,041,000 WELLS FARGO BANK NA 1 4,986,593 4,920,500 29379V-BH-5 ENTERPRISE PRODUCTS OPER 2 4,986,593 4,920,500 GENERAL ELECTRIC CO 1 13,558,808 1,961,456 1,139,000 12/20/2016 12/07/2028 GENERAL ELECTRIC CO (639,774) 07274N-AZ-6 BAYER US FINANCE II LLC 2 1,961,456 1,778,774 GENERAL ELECTRIC CO 1 4,903,035 4,446,935 07274N-AZ-6 BAYER US FINANCE II LLC 2 4,903,035 4,446,935 GENERAL ELECTRIC CO 1 11,998,593 12,824,760 91324P-CQ-3 UNITED HEALTH GROUP 1 11,998,593 12,824,760 GOLDMAN SACHS GROUP INC 1 8,549,639 9,992,272 9,797,362 12/20/2016 01/29/2026 GOLDMAN SACHS GROUP INC 51,362 31677A-AB-0 FIFTH THIRD BANK 2 9,992,272 9,746,000 GOLDMAN SACHS GROUP INC 1 3,990,814 3,975,600 46625H-NJ-5 JP MORGAN CHASE & CO 2 3,990,814 3,975,600 JPMORGAN CHASE & CO 1 28,028,211 4,898,172 4,732,614 12/20/2016 12/18/2026 JPMORGAN CHASE & CO (53,386) 260543-CK-7 DOW CHEMICAL COMPANY 2 4,898,172 4,786,000 JPMORGAN CHASE & CO 1 9,959,347 10,228,000 29379V-AW-3 ENTERPRISE PRODUCTS OPER 2 9,959,347 10,228,000 JPMORGAN CHASE & CO 1 998,366 1,030,270 375558-BG-7 GILEAD SCIENCES INC 1 998,366 1,030,270 JPMORGAN CHASE & CO 1 999,068 1,030,270 375558-BG-7 GILEAD SCIENCES INC 1 999,068 1,030,270 JPMORGAN CHASE & CO 1 9,996,588 10,221,000 68389X-AV-7 ORACLE CORPORATION 1 9,996,588 10,221,000 JPMORGAN CHASE & CO 1 9,848,774 11,557,000 92976G-AG-6 WACHOVIA BANK NA 1 9,848,774 11,557,000 MCDONALD'S CORP 2 6,024,753 4,979,180 5,011,188 02/27/2017 02/03/2020 MCDONALD'S CORP 47,703 00205G-AA-5 APT PIPELINES LTD 2 4,979,180 4,963,485 MCDONALD'S CORP 2 4,977,572 5,063,485 46131N-AD-6 INVERSIONES CMPC SA 2 4,977,572 5,063,485 TEXTRON INC 2 8,562,058 5,072,966 4,990,719 02/27/2017 04/07/2020 TEXTRON INC 175,719 096630-AF-5 BOARDWALK PIPELINES LP 2 5,072,966 4,815,000 TEXTRON INC 2 9,866,274 9,776,000 124857-AQ-6 CBS CORP 2 9,866,274 9,776,000 CITIGROUP INC 2 13,966,626 4,999,184 5,163,634 02/27/2017 12/12/2018 CITIGROUP INC 120,274 010392-EK-0 ALABAMA POWER CO 1 4,999,184 5,043,360 CITIGROUP INC 2 4,995,401 5,085,100 097023-AW-5 BOEING COMPANY 1 4,995,401 5,085,100 CITIGROUP INC 2 4,998,838 5,067,090 505588-BD-4 LACLEDE GAS 1 4,998,838 5,067,090 CITIGROUP INC 2 5,177,727 5,120,015 05379B-AH-0 MCKESSON HBOC, INC 1 5,177,727 5,120,015 BANK OF AMERICA CORP 1 7,310,065 1,998,085 2,117,548 02/27/2017 12/04/2019 BANK OF AMERICA CORP 44,348 125896-BE-9 CMS ENERGY CORP 2 1,998,085 2,073,200
SI05 BANK OF AMERICA CORP 1 4,930,345 5,501,220 402740-AB-0 GULFSTREAM NATURAL GAS 2 4,930,345 5,501,220 BANK OF AMERICA CORP 1 5,035,302 4,955,000 754907-AA-1 RAYONIER INC 2 5,035,302 4,955,000 METLIFE INC 1 827,469 1,995,296 1,859,238 02/27/2017 12/09/2024 METLIFE INC 228 127055-AK-7 CABOT CORP 2 1,995,296 1,859,010 METLIFE INC 1 2,738,439 4,809,737 4,922,363 02/27/2017 06/29/2020 METLIFE INC (7,987) 46625H-JH-4 JP MORGAN CHASE & CO 1 4,809,737 4,930,350 AMERICAN INTL GROUP 2 5,073,734 4,985,334 5,131,758 02/27/2017 04/26/2023 AMERICAN INTL GROUP 87,758 151020-AJ-3 CELGENE CORP 2 4,985,334 5,044,000 AMERICAN INTL GROUP 2 4,980,571 4,999,415 46128M-AF-8 INVERSIONES CMPC SA 2 4,980,571 4,999,415 GE CAPITAL 1 14,388,785 9,985,155 10,103,156 02/27/2017 05/24/2023 GE CAPITAL (178,844) 695156-AQ-2 PACKAGING CORP OF AMERICA 2 9,985,155 10,282,000 GE CAPITAL 1 7,547,572 8,331,366 00206R-EW-8 AT&T INC 2 7,547,572 8,331,366 GE CAPITAL 1 2,003,500 2,068,400 98978V-AK-9 ZOETIS 2 2,003,500 2,068,400 JOHNSON & JOHNSON 1 17,412,560 4,988,402 4,962,470 02/27/2017 11/06/2024 JOHNSON & JOHNSON 65,470 092113-AL-3 BLACK HILLS POWER INC. 2 4,988,402 4,897,000 JOHNSON & JOHNSON 1 2,988,541 2,891,700 225433-AC-5 CREDIT SUISSE GP FUN LTD 2 2,988,541 2,891,700 JOHNSON & JOHNSON 1 5,028,485 5,082,550 340711-AW-0 FLORIDA GAS TRANSMISSION 2 5,028,485 5,082,550 JOHNSON & JOHNSON 1 2,009,852 1,940,600 50540R-AQ-5 LABORATORY CORP OF AMER 2 2,009,852 1,940,600 JOHNSON & JOHNSON 1 3,012,315 2,910,900 50540R-AQ-5 LABORATORY CORP OF AMER 2 3,012,315 2,910,900 JOHNSON & JOHNSON 1 2,002,729 1,960,386 60856B-AC-8 MOLEX ELECTRONICS TECH 2 2,002,729 1,960,386 JOHNSON & JOHNSON 1 4,013,895 3,920,772 60856B-AC-8 MOLEX ELECTRONICS TECH 2 4,013,895 3,920,772 MET LIFE GLOB FUNDING I 1 14,628,394 9,997,164 9,075,339 02/27/2017 09/30/2026 MET LIFE GLOB FUNDING I (93,661) 960386-AL-4 WESTINGHOUSE AIRBRAKE CO 2 9,997,164 9,169,000 MET LIFE GLOB FUNDING I 1 4,029,776 3,667,600 960386-AL-4 WESTINGHOUSE AIRBRAKE CO 2 4,029,776 3,667,600 MET LIFE GLOB FUNDING I 1 2,009,966 1,833,800 960386-AL-4 WESTINGHOUSE AIRBRAKE CO 2 2,009,966 1,833,800 MET LIFE GLOB FUNDING I 1 1,006,392 916,900 960386-AL-4 WESTINGHOUSE AIRBRAKE CO 2 1,006,392 916,900 MET LIFE GLOB FUNDING I 1 1,006,392 916,900 960386-AL-4 WESTINGHOUSE AIRBRAKE CO 2 1,006,392 916,900 MET LIFE GLOB FUNDING I 1 1,007,378 916,900 960386-AL-4 WESTINGHOUSE AIRBRAKE CO 2 1,007,378 916,900 ANHEUSER-BUSCH INBEV NV 1 3,043,390 3,997,311 4,007,904 02/27/2017 09/24/2025 ANHEUSER-BUSCH INBEV NV (32,172) 834423-AB-1 SOLVAY FINANCE (AMERICA) 2 3,997,311 4,040,076 GOLDMAN SACHS GROUP INC 1 15,839,410 7,993,273 7,669,651 02/27/2017 01/29/2026 GOLDMAN SACHS GROUP INC (4,749) 67103H-AE-7 O'REILLY AUTOMOTIVE INC 2 7,993,273 7,674,400 GOLDMAN SACHS GROUP INC 1 3,003,943 3,078,600 78409V-AK-0 S&P GLOBAL INC 2 3,003,943 3,078,600 GOLDMAN SACHS GROUP INC 1 3,004,302 3,078,600 78409V-AK-0 S&P GLOBAL INC 2 3,004,302 3,078,600 GOLDMAN SACHS GROUP INC 1 6,028,101 5,893,716 89400P-AE-3 TRANSURBAN FINANCE CO 2 6,028,101 5,893,716 GOLDMAN SACHS GROUP INC 1 1,007,378 916,900 960386-AL-4 WESTINGHOUSE AIRBRAKE CO 2 1,007,378 916,900 WALGREENS BOOTS ALLIANCE 2 10,015,991 14,986,314 15,016,959 02/27/2017 11/20/2025 WALGREENS BOOTS ALLIANCE (133,326) 834423-AB-1 SOLVAY FINANCE (AMERICA) 2 14,986,314 15,150,285 ANHEUSER-BUSCH INBEV NV 1 16,341,376 7,998,280 10,148,109 03/29/2018 05/25/2037 ANHEUSER-BUSCH INBEV NV (68,107) 826418-BE-4 SIERRA PACIFIC POWER 1 7,998,280 10,216,216 ANHEUSER-BUSCH INBEV NV 1 4,976,682 6,256,000 976826-BE-6 WISCONSIN POWER & LIGHT CO 1 4,976,682 6,256,000 ANHEUSER-BUSCH INBEV NV 1 4,962,629 6,572,910 283677-AX-0 EL PASO ELECTRIC 2 4,962,629 6,572,910 ANHEUSER-BUSCH INBEV NV 1 4,997,382 6,683,765 74837H-AA-4 QUESTAR GAS COMPANY 1 4,997,382 6,683,765 MCKESSON CORP 2 11,095,734 8,434,896 10,044,303 03/29/2018 02/17/2029 MCKESSON CORP (156,257) 713409-AC-4 PEPSI BOTTLING GROUP INC 1 8,434,896 10,200,560 MCKESSON CORP 2 7,000,000 6,680,940 38141G-WV-2 GOLDMAN SACHS 1 7,000,000 6,680,940 WELLS FARGO & COMPANY 1 2,820,742 2,975,160 3,869,993 03/29/2018 09/12/2029 WELLS FARGO & COMPANY (84,907) 373298-BR-8 GEORGIA PACIFIC 1 2,975,160 3,954,900 WELLS FARGO & COMPANY 1 2,022,359 2,636,600 373298-BR-8 GEORGIA PACIFIC 1 2,022,359 2,636,600 MORGAN STANLEY 1 7,637,191 4,952,716 4,772,423 03/29/2018 03/09/2027 MORGAN STANLEY (33,527) 61761J-ZN-2 MORGAN STANLEY 2 4,952,716 4,805,950 MORGAN STANLEY 1 6,979,348 6,835,080 337932-AH-0 FIRST ENERGY 2 6,979,348 6,835,080 VERIZON COMMUNICATIONS 2 6,292,084 7,465,255 8,693,187 03/29/2018 11/02/2035 VERIZON COMMUNICATIONS 63,537 842434-CG-5 SOUTHERN CALIFORNIA GAS 1 7,465,255 8,629,650 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE DB - PART C - SECTION 1 Replication (Synthetic Asset) Transactions Open as of Current Statement Date Replication (Synthetic Asset) Transactions Components of the Replication (Synthetic Asset) Transactions 1 2 3 4 5 6 7 8 Derivative Instrument(s) Open Cash Instrument(s) Held 9 10 11 12 13 14 15 16 NAIC NAIC Designation or Book/Adjusted Book/Adjusted Designation or Book/Adjusted Other Notional Carrying Effective Maturity Carrying Other Carrying Number Description Description Amount Value Fair Value Date Date Description Value Fair Value CUSIP Description Description Value Fair Value VERIZON COMMUNICATIONS 2 1,775,742 2,249,923 101137-AE-7 BOSTON SCIENTIFIC CORP 2 1,775,742 2,249,923 VERIZON COMMUNICATIONS 2 2,581,741 5,082,869 5,559,556 03/29/2018 10/27/2036 VERIZON COMMUNICATIONS 32,056 92857W-AQ-3 VODAFONE GROUP PLC 2 5,082,869 5,527,500 AUTOSTRADE PER L'ITALIA 2 12,007,376 9,983,169 9,821,282 09/06/2018 06/09/2022 AUTOSTRADE PER L'ITALIA 29,282 34354P-AC-9 FLOWSERVE CORPORATION 2 9,983,169 9,792,000 AUTOSTRADE PER L'ITALIA 2 2,004,064 2,021,480 042735-BC-3 ARROW ELECTRONICS 2 2,004,064 2,021,480 AUTOSTRADE PER L'ITALIA 2 10,000,000 9,925,300 595017-AL-8 MICROCHIP TECHNOLOGY INC 2 10,000,000 9,925,300 9999999 - Totals 357,576,463 369,687,680 XXX XXX XXX (745,034) XXX XXX XXX 357,576,463 370,432,714
SI05.1 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE DB - PART C - SECTION 2 Replication (Synthetic Asset) Transactions Open
First Quarter Second Quarter Third Quarter Fourth Quarter Year To Date 1 2 3 4 5 6 7 8 9 10 Total Replication Total Replication Total Replication Total Replication Total Replication Number (Synthetic Asset) Number (Synthetic Asset) Number (Synthetic Asset) Number (Synthetic Asset) Number (Synthetic Asset) of Transactions of Transactions of Transactions of Transactions of Transactions Positions Statement Value Positions Statement Value Positions Statement Value Positions Statement Value Positions Statement Value
1. Beginning Inventory 17 265,898,267 23 335,799,084 23 335,767,492 17 265,898,267
2. Add: Opened or Acquired Transactions 6 69,634,238 1 21,987,233 7 91,621,471
3. Add: Increases in Replication (Synthetic Asset) Transactions Statement Value XXX 266,579 XXX (31,592) XXX XXX XXX 234,987
4. Less: Closed or Disposed of Transactions
5. Less: Positions Disposed of for Failing Effectiveness Criteria
6. Less: Decreases in Replication (Synthetic Asset) Transactions Statement Value XXX XXX XXX 178,262 XXX XXX 178,262
SI06
7. Ending Inventory 23 335,799,084 23 335,767,492 24 357,576,463 24 357,576,463 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE DB - VERIFICATION Verification of Book/Adjusted Carrying Value, Fair Value and Potential Exposure of all Open Derivative Contracts
Book/Adjusted Carrying Value Check
1. Part A, Section 1, Column 14 (572,330)
2. Part B, Section 1, Column 15 plus Part B, Section 1 Footnote - Total Ending Cash Balance
3. Total (Line 1 plus Line 2) (572,330)
4. Part D, Section 1, Column 5 12,804,110
5. Part D, Section 1, Column 6 (13,376,440)
6. Total (Line 3 minus Line 4 minus Line 5)
Fair Value Check
7. Part A, Section 1, Column 16 (3,187,725)
8. Part B, Section 1, Column 13
9. Total (Line 7 plus Line 8) (3,187,725)
10. Part D, Section 1, Column 8 14,019,998
11. Part D, Section 1, Column 9 (17,207,723)
12 Total (Line 9 minus Line 10 minus Line 11)
Potential Exposure Check
13. Part A, Section 1, Column 21 6,964,446
14. Part B, Section 1, Column 20
15. Part D, Section 1, Column 11 6,964,446
16. Total (Line 13 plus Line 14 minus Line 15)
SI07 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE E - PART 2 - VERIFICATION (Cash Equivalents) 1 2
Prior Year Ended Year To Date December 31
1. Book/adjusted carrying value, December 31 of prior year 18,851,453 33,121,920
2. Cost of cash equivalents acquired 4,711,774,067 4,910,615,514
3. Accrual of discount
4. Unrealized valuation increase (decrease)
5. Total gain (loss) on disposals
6. Deduct consideration received on disposals 4,641,408,152 4,924,885,981
7. Deduct amortization of premium
8. Total foreign exchange change in book/adjusted carrying value
9. Deduct current year’s other than temporary impairment recognized
10. Book/adjusted carrying value at end of current period (Lines 1+2+3+4+5-6-7+8-9) 89,217,368 18,851,453
11. Deduct total nonadmitted amounts
12. Statement value at end of current period (Line 10 minus Line 11) 89,217,368 18,851,453
SI08 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE A - PART 2 Showing All Real Estate ACQUIRED AND ADDITIONS MADE During the Current Quarter 1 4 5 6 7 8 9 Location 2 3 Additional Book/Adjusted Investment Date Actual Cost at Amount of Carrying Value Made After Description of Property City State Acquired Name of Vendor Time of Acquisition Encumbrances Less Encumbrances Acquisition HOME OFFICE BUILDING AND ADDITIONS CHATTANOOGA TN 01/01/1959 2,145,570 0199999. Acquired by Purchase 2,145,570
0399999 - Totals 2,145,570 SCHEDULE A - PART 3 Showing All Real Estate DISPOSED During the Quarter, Including Payments During the Final Year on “Sales Under Contract” 1 Location 4 5 6 7 8 Change in Book/Adjusted Carrying Value Less Encumbrances 14 15 16 17 18 19 20 2 3 Expended 9 10 11 12 13 for Book/ Total Book/ Gross Additions, Adjusted Total Foreign Adjusted Income
E01 Permanent Carrying Current Change in Exchange Carrying Foreign Earned Improve- Value Less Year’s Current Book/ Change in Value Less Exchange Realized Total Less Taxes, ments and Encum- Current Other Than Year's Adjusted Book/ Encum- Amounts Gain Gain Gain Interest Repairs Changes brances Year’s Temporary Change in Carrying Adjusted brances Received (Loss) (Loss) (Loss) Incurred on and Disposal Actual in Encum- Prior Depre- Impairment Encum- Value Carrying on During on on on Encum- Expenses Description of Property City State Date Name of Purchaser NONECost brances Year ciation Recognized brances (11-9-10) Value Disposal Year Disposal Disposal Disposal brances Incurred
0399999 - Totals STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE B - PART 2 Showing All Mortgage Loans ACQUIRED AND ADDITIONS MADE During the Current Quarter 1 Location 4 5 6 7 8 9 2 3 Additional Loan Actual Cost at Investment Made Value of Land Loan Number City State Type Date Acquired Rate of Interest Time of Acquisition After Acquisition and Buildings Mortgages in good standing - Commercial mortgages-all other 100014060 CARY NC 09/12/2018 4.540 7,100,000 9,900,000 0599999. Mortgages in good standing - Commercial mortgages-all other 7,100,000 9,900,000 0899999. Total Mortgages in good standing 7,100,000 9,900,000 1699999. Total - Restructured Mortgages 2499999. Total - Mortgages with overdue interest over 90 days 3299999. Total - Mortgages in the process of foreclosure
3399999 - Totals 7,100,000 9,900,000
E02 SCHEDULE B - PART 3 Showing All Mortgage Loans DISPOSED, Transferred or Repaid During the Current Quarter 1 Location 4 5 6 7 Change in Book Value/Recorded Investment 14 15 16 17 18 2 3 Book Value/ 8 9 10 11 12 13 Book Value/ Recorded Current Recorded Investment Year’s Other Total Investment Foreign Excluding Unrealized Current Than Capitalized Change Total Foreign Excluding Exchange Realized Total Accrued Valuation Year’s Temporary Deferred in Exchange Accrued Gain Gain Gain Loan Date Disposal Interest Increase (Amortization) Impairment Interest and Book Value Change in Interest on Consid- (Loss) on (Loss) on (Loss) on Loan Number City State Type Acquired Date Prior Year (Decrease) /Accretion Recognized Other (8+9-10+11) Book Value Disposal eration Disposal Disposal Disposal Mortgages closed by repayment 100002414 TAMPA FL 08/31/2006 07/02/2018 2,247,040 2,247,040 2,247,040 100006288 MARYSVILLE WA 08/03/2009 09/28/2018 8,240,266 8,240,266 8,240,266 0199999. Mortgages closed by repayment 10,487,306 10,487,306 10,487,306 Mortgages with partial repayments 100002002 BRYAN TX 09/12/2005 292,536 292,536 292,536 100002062 WOODINVILLE WA 06/01/2005 62,789 62,789 62,789 100002534 OWINGS MILLS MD 08/15/2006 168,069 168,069 168,069 100002712 AUBURN CA 05/24/2006 40,157 40,157 40,157 100002979 CROFTON MD 12/21/2006 63,349 63,349 63,349 100003111 PLYMOUTH MN 08/07/2006 90,261 90,261 90,261 100003523 IRVING TX 02/22/2007 44,806 44,806 44,806 100003803 ROCKY MOUNT NC 10/02/2007 61,095 61,095 61,095 100003847 ASHBURN VA 11/13/2007 80,746 80,746 80,746 100003969 KELSO WA 06/27/2008 20,487 20,487 20,487 100004681 WAKE FOREST NC 01/31/2014 35,279 35,279 35,279 100005029 CHATTANOOGA TN 05/30/2012 93,257 93,257 93,257 100005238 MESA AZ 12/19/2013 31,959 31,959 31,959 100005755 Multiple Locations IL 03/31/2009 85,082 85,082 85,082 100005817 BOSTON MA 07/10/2009 110,297 110,297 110,297 100007390 EVERETT WA 11/21/2016 45,099 45,099 45,099 100007475 COCONUT CREEK FL 01/20/2011 43,709 43,709 43,709 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE B - PART 3 Showing All Mortgage Loans DISPOSED, Transferred or Repaid During the Current Quarter 1 Location 4 5 6 7 Change in Book Value/Recorded Investment 14 15 16 17 18 2 3 Book Value/ 8 9 10 11 12 13 Book Value/ Recorded Current Recorded Investment Year’s Other Total Investment Foreign Excluding Unrealized Current Than Capitalized Change Total Foreign Excluding Exchange Realized Total Accrued Valuation Year’s Temporary Deferred in Exchange Accrued Gain Gain Gain Loan Date Disposal Interest Increase (Amortization) Impairment Interest and Book Value Change in Interest on Consid- (Loss) on (Loss) on (Loss) on Loan Number City State Type Acquired Date Prior Year (Decrease) /Accretion Recognized Other (8+9-10+11) Book Value Disposal eration Disposal Disposal Disposal 100007513 PLYMOUTH MN 12/09/2010 57,162 57,162 57,162 100008052 BROOKFIELD WI 05/18/2011 40,299 40,299 40,299 100008171 CLARKSVILLE TN 08/17/2011 48,869 48,869 48,869 100008619 MESA AZ 11/10/2011 40,062 40,062 40,062 100009312 FRESNO CA 10/01/2012 146,542 146,542 146,542 100009504 VIENNA VA 10/01/2012 92,716 92,716 92,716 100009608 UPPER GWYNEDD TWNSHP PA 12/11/2012 95,364 95,364 95,364 100009825 SEYMOUR IN 02/21/2013 68,805 68,805 68,805 100010026 BURNSVILLE MN 07/31/2013 97,479 97,479 97,479 100010115 GLASSBORO NJ 10/25/2013 85,381 85,381 85,381 100010130 SAN ANTONIO TX 01/29/2014 81,387 81,387 81,387 100010137 PHILADELPHIA PA 06/11/2013 81,888 81,888 81,888 100010185 CHANDLER AZ 03/25/2015 49,713 49,713 49,713 100010216 HUDSON WI 04/30/2014 40,348 40,348 40,348 100010424 PORTLAND ME 02/10/2014 132,977 132,977 132,977 100010908 CARROLLTON VA 04/08/2014 67,890 67,890 67,890 100011235 EVERETT WA 12/17/2014 38,452 38,452 38,452 100011334 COLLEGE STATION TX 10/30/2014 65,384 65,384 65,384 100011383 TUCSON, AZ 12/19/2014 89,067 89,067 89,067 100011515 PARK CITY UT 01/30/2015 49,743 49,743 49,743 100012335 RICHARDSON TX 09/01/2015 50,191 50,191 50,191
100012418 GREENSBORO NC 01/08/2016 49,832 49,832 49,832 E02.1 100012486 GIG HARBOR WA 02/10/2016 71,885 71,885 71,885 100012540 BURLINGTON KY 02/09/2016 79,018 79,018 79,018 100012682 GRIMES IA 08/03/2016 36,029 36,029 36,029 100012691 ROWLETT TX 06/02/2016 67,644 67,644 67,644 100012863 WELLINGTON FL 11/14/2017 63,176 63,176 63,176 100013005 RICHMOND VA 08/23/2016 55,159 55,159 55,159 100013186 GEORGETOWN TX 10/26/2016 47,519 47,519 47,519 100013238 WASHINGTON DC 11/29/2016 32,925 32,925 32,925 100013480 BELMONT NC 07/26/2017 85,107 85,107 85,107 100013504 AUSTIN TX 08/01/2017 36,345 36,345 36,345 100013600 HENDERSON NV 10/13/2017 60,057 60,057 60,057 100013646 RICHMOND VA 10/13/2017 48,139 48,139 48,139 100013863 SIMI VALLEY CA 04/30/2018 34,779 34,779 0299999. Mortgages with partial repayments 3,621,531 3,656,310 3,656,310 0599999 - Totals 14,108,837 14,143,616 14,143,616 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE BA - PART 2 Showing Other Long-Term Invested Assets ACQUIRED AND ADDITIONS MADE During the Current Quarter 1 2 Location 5 6 7 8 9 10 11 12 13 3 4 Commitment Date Type Actual Cost Additional for CUSIP Name of Vendor NAIC Originally and at Time of Investment Made Amount of Additional Percentage of Identification Name or Description City State or General Partner Designation Acquired Strategy Acquisition After Acquisition Encumbrances Investment Ownership Joint Venture Interests - Common Stock - Unaffiliated 000000-00-0 KAYNE SENIOR CREDIT FUND II, L.P. LOS ANGELES CA KAYNE SENIOR CREDIT II GP LLC 12/19/2014 5,797 1,374,548 5.970 1599999. Joint Venture Interests - Common Stock - Unaffiliated 5,797 1,374,548 XXX 4499999. Total - Unaffiliated 5,797 1,374,548 XXX 4599999. Total - Affiliated XXX
4699999 - Totals 5,797 1,374,548 XXX
E03 SCHEDULE BA - PART 3 Showing Other Long-Term Invested Assets DISPOSED, Transferred or Repaid During the Current Quarter 1 2 Location 5 6 7 8 Change in Book/Adjusted Carrying Value 15 16 17 18 19 20 3 4 9 10 11 12 13 14 Book/ Current Book/ Adjusted Year’s Total Total Adjusted Carrying Current Other Change in Foreign Carrying Value Year’s Than Capital- Book/ Exchange Value Foreign Less Unrealized (Depre- Temporary ized Adjusted Change in Less Exchange Encum- Valuation ciation) or Impair- Deferred Carrying Book/ Encum- Gain Realized Total Date brances, Increase (Amorti- ment Interest Value Adjusted brances (Loss) Gain Gain Invest- CUSIP Name of Purchaser or Originally Disposal Prior (De- zation)/ Recog- and (9+10- Carrying on Consid- on (Loss) on (Loss) on ment Identification Name or Description City State Nature of Disposal Acquired Date Year crease) Accretion nized Other 11+12) Value Disposal eration Disposal Disposal Disposal Income Joint Venture Interests - Common Stock - Unaffiliated 000000-00-0 KAYNE SENIOR CREDIT FUND II, L.P. LOS ANGELES CA DISTRIBUTION 12/19/2014 09/14/2018 421,887 28,567 28,567 450,454 450,454 10,496 000000-00-0 TRIDENT V, LP GEORGETOWN CYM DISTRIBUTION 07/09/2010 09/28/2018 1,151,496 (425,517) (425,517) 725,979 725,979 139,416 1599999. Joint Venture Interests - Common Stock - Unaffiliated 1,573,383 (396,950) (396,950) 1,176,433 1,176,433 149,912 4499999. Total - Unaffiliated 1,573,383 (396,950) (396,950) 1,176,433 1,176,433 149,912 4599999. Total - Affiliated
4699999 - Totals 1,573,383 (396,950) (396,950) 1,176,433 1,176,433 149,912 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE D - PART 3 Show All Long-Term Bonds and Stock Acquired During the Current Quarter 1 2 3 4 5 6 7 8 9 10 NAIC Desig- nation or Number of Paid for Accrued Market CUSIP Date Shares of Interest and Indicator Identification Description Foreign Acquired Name of Vendor Stock Actual Cost Par Value Dividends (a) Bonds - U.S. Special Revenues 59333P-3W-6 MIAMI-DADE CNTY FL AVIATION RE REV BDS 4.280% 10/01/41 08/16/2018 J P MORGAN CHASE 15,000,000 15,000,000 1FE 3199999. Subtotal - Bonds - U.S. Special Revenues 15,000,000 15,000,000 XXX Bonds - Industrial and Miscellaneous (Unaffiliated) 343412-AF-9 FLUOR CORP SR UNSEC 4.250% 09/15/28 08/20/2018 BANK OF AMERICA 9,978,700 10,000,000 2FE 40573L-AS-5 HALFMOON PARENT INC 144A SR UNSEC 4.375% 10/15/28 09/06/2018 MORGAN STANLEY 9,986,700 10,000,000 2FE 776743-AF-3 ROPER TECHNOLOGIES INC SR UNSEC 4.200% 09/15/28 08/14/2018 J P MORGAN CHASE 9,989,200 10,000,000 2FE 89255#-AA-9 TRADEMARK ROYALTY 2018-1 LLC SR SEC NT 4.920% 07/01/48 07/03/2018 GOLDMAN SACHS 10,000,000 10,000,000 1FE 913017-CW-7 UNITED TECHNOLOGIES SR UNSEC 4.450% 11/16/38 08/14/2018 STIFEL NICOLAUS CO. 5,024,530 5,000,000 2FE 913017-CX-5 UNITED TECHNOLOGIES SR UNSEC 4.625% 11/16/48 08/13/2018 BANK OF AMERICA 6,977,810 7,000,000 2FE 05256L-AB-9 AUSTRALIA PACIFIC LNG SR SEC NT 4.820% 09/30/30 D 09/25/2018 CITIGROUP 5,000,000 5,000,000 2FE 07274N-AZ-6 BAYER US FINANCE II LLC 144A SR UNSEC 4.200% 07/15/34 C 07/12/2018 EXCHANGE 7,010,691 7,000,000 2FE Q1298@-AB-5 CPOF FIN PTY LTD SER B SR UNSEC GTD NT 4.490% 09/26/28 D 09/26/2018 CW BANK OF AUSTRALIA 15,000,000 15,000,000 2FE 3899999. Subtotal - Bonds - Industrial and Miscellaneous (Unaffiliated) 78,967,631 79,000,000 XXX 8399997. Total - Bonds - Part 3 93,967,631 94,000,000 XXX 8399998. Total - Bonds - Part 5 XXX XXX XXX XXX 8399999. Total - Bonds 93,967,631 94,000,000 XXX 8999997. Total - Preferred Stocks - Part 3 XXX XXX 8999998. Total - Preferred Stocks - Part 5 XXX XXX XXX XXX 8999999. Total - Preferred Stocks XXX XXX 9799997. Total - Common Stocks - Part 3 XXX XXX
9799998. Total - Common Stocks - Part 5 XXX XXX XXX XXX E04 9799999. Total - Common Stocks XXX XXX 9899999. Total - Preferred and Common Stocks XXX XXX 9999999 - Totals 93,967,631 XXX XXX (a) For all common stock bearing the NAIC market indicator "U" provide: the number of such issues STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE D - PART 4 Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter 1 2 3 4 5 6 7 8 9 10 Change In Book/Adjusted Carrying Value 16 17 18 19 20 21 22 11 12 13 14 15 Total Total NAIC Current Change in Foreign Desig- Year's Book/ Exchange Book/ Bond nation Prior Year Current Other Than Adjusted Change in Adjusted Foreign Interest/ Stated or Book/ Unrealized Year's Temporary Carrying Book Carrying Exchange Realized Stock Con- Market CUSIP Number of Adjusted Valuation (Amor- Impairment Value /Adjusted Value at Gain Gain Total Gain Dividends tractual In- Ident- For- Disposal Name Shares of Consid- Actual Carrying Increase/ tization)/ Recog- (11 + 12 - Carrying Disposal (Loss) on (Loss) on (Loss) on Received Maturity dicator ification Description eign Date of Purchaser Stock eration Par Value Cost Value (Decrease) Accretion nized 13) Value Date Disposal Disposal Disposal DuringYear Date (a) Bonds - U.S. Governments 38373W-C6-3 GNMA 2002-29 Z 6.500% 05/16/32 09/01/2018 PAYDOWN 144,190 144,190 134,438 138,363 5,827 5,827 144,190 6,426 05/16/2032 1 38374G-KP-6 GNMA SERIES 2004-29 CLASS ZL 5.000% 09/01/2018 PAYDOWN 984,705 984,705 868,988 933,045 51,660 51,660 984,705 32,998 04/16/2034 1 92260M-AH-6 VA VENDEE SR 1996-1 CL 1Z 6.750% 09/01/2018 PAYDOWN 278,518 278,518 259,901 270,303 8,215 8,215 278,518 12,640 02/15/2026 1 0599999. Subtotal - Bonds - U.S. Governments 1,407,413 1,407,413 1,263,327 1,341,711 65,702 65,702 1,407,413 52,064 XXX XXX Bonds - All Other Governments 68323Z-GE-3 ONTARIO STRIP 0.000% 07/13/18 07/13/2018 MATURITY 8,853,600 8,853,600 950,903 8,797,594 366,445 366,445 (962,105) 8,201,934 651,666 651,666 07/13/2018 1FE 68323Z-KK-4 ONTARIO STRIP 0.000% 09/08/18 09/08/2018 MATURITY 4,373,040 4,373,040 793,621 4,284,092 256,674 256,674 55,391 4,596,157 (223,117) (223,117) 09/08/2018 1FE 1099999. Subtotal - Bonds - All Other Governments 13,226,640 13,226,640 1,744,524 13,081,686 623,119 623,119 (906,714) 12,798,091 428,549 428,549 XXX XXX Bonds - U.S. Special Revenues 3128M9-X6-4 FGLMC G07601 3.000% 07/01/43 09/01/2018 PAYDOWN 1,193,755 1,193,755 1,164,414 1,166,266 27,489 27,489 1,193,755 23,100 07/01/2043 1FE 3128MJ-2R-0 FGLMC G08783 3.000% 10/01/47 09/01/2018 PAYDOWN 38,293 38,293 38,555 38,553 (260) (260) 38,293 779 10/01/2047 1FE 3128MJ-2Z-2 FGLMC G08791 3.000% 12/01/47 09/01/2018 PAYDOWN 36,984 36,984 36,942 36,942 42 42 36,984 747 12/01/2047 1FE 3128MJ-TA-8 FGLMC FG G08544 3.000% 09/01/43 09/01/2018 PAYDOWN 339,059 339,059 323,202 324,324 14,735 14,735 339,059 6,796 09/01/2043 1FE 3128MJ-V5-6 FGLMC POOL G08635 3.000% 04/01/45 09/01/2018 PAYDOWN 1,055,530 1,055,530 1,078,703 1,077,475 (21,945) (21,945) 1,055,530 20,999 04/01/2045 1FE 3128MJ-VZ-0 FGLMC POOL G08631 3.000% 03/01/45 09/01/2018 PAYDOWN 496,064 496,064 507,458 506,843 (10,779) (10,779) 496,064 9,863 03/01/2045 1FE 3128MJ-XJ-4 FGLMC G08680 3.000% 12/01/45 09/01/2018 PAYDOWN 60,282 60,282 60,437 60,429 (147) (147) 60,282 1,209 12/01/2045 1FE 3128MJ-ZF-0 FGLMC G08741 3.000% 01/01/47 09/01/2018 PAYDOWN 120,717 120,717 119,406 119,426 1,291 1,291 120,717 2,403 01/01/2047 1FE
3128MJ-ZM-5 FGLMC G08747 3.000% 02/01/47 09/01/2018 PAYDOWN 112,273 112,273 111,976 111,984 289 289 112,273 2,259 02/01/2047 1FE E05 312913-X5-0 FHLMC 1443 I PAC 7.500% 12/15/22 09/01/2018 PAYDOWN 50,111 50,111 43,832 48,588 1,523 1,523 50,111 2,550 12/15/2022 1FE 312944-5W-7 FGLMC POOL A96261 4.000% 01/01/41 09/01/2018 PAYDOWN 177,963 177,963 174,265 174,661 3,302 3,302 177,963 4,356 01/01/2041 1FE 3132JB-GF-4 FGLMC FG Q19697 3.000% 06/01/43 09/01/2018 PAYDOWN 313,593 313,593 294,924 296,072 17,521 17,521 313,593 6,502 06/01/2043 1FE 313399-LK-1 FHLMC 2343 MZ 6.500% 08/15/31 09/01/2018 PAYDOWN 94,122 94,122 89,176 91,343 2,779 2,779 94,122 4,009 08/15/2031 1FE 3133T4-NZ-5 FHLMC 1994 1694 Z 6.500% 03/15/24 09/01/2018 PAYDOWN 101,622 101,622 91,031 98,164 3,458 3,458 101,622 4,400 03/15/2024 1FE 3133T5-B8-5 FHLMC 1746 Z 7.000% 05/15/24 09/01/2018 PAYDOWN 77,731 77,731 70,893 75,548 2,183 2,183 77,731 3,743 05/15/2024 1FE 3133T8-HZ-3 FHLMC 1909 Z CMO 7.000% 11/15/26 09/01/2018 PAYDOWN 19,699 19,699 17,708 18,941 758 758 19,699 936 11/15/2026 1FE 3133TN-AF-1 FHLMC 2212 Z 7.000% 01/15/30 09/01/2018 PAYDOWN 39,486 39,486 35,698 36,802 2,684 2,684 39,486 1,718 01/15/2030 1FE 3133TV-UR-5 FHLMC 2434 Z 6.500% 04/15/32 09/01/2018 PAYDOWN 122,479 122,479 112,661 117,525 4,954 4,954 122,479 5,221 04/15/2032 1FE 31340Y-D3-0 FHLMC 71 F PAC 9.300% 12/15/20 08/15/2018 PAYDOWN 1,293 1,293 1,288 1,283 10 10 1,293 80 12/15/2020 1FE 31359D-3U-5 FNMA 1993-163 ZA 7.000% 09/25/23 09/01/2018 PAYDOWN 19,973 19,973 19,277 19,591 382 382 19,973 939 09/25/2023 1FE 31359G-KC-9 FNMA 1994-10 KZ 6.500% 01/25/24 09/01/2018 PAYDOWN 252,110 252,110 231,713 244,291 7,819 7,819 252,110 11,043 01/25/2024 1FE 31359H-WD-2 FNMA 94-79-D 7.000% 04/25/24 09/01/2018 PAYDOWN 7,767 7,767 7,502 7,598 169 169 7,767 368 04/25/2024 1FE 31359H-WH-3 FNMA 1994-79 Z 7.000% 04/25/24 09/01/2018 PAYDOWN 18,451 18,451 16,861 17,921 530 530 18,451 873 04/25/2024 1FE 31359K-TE-7 FNMA 96-37 Z 7.000% 08/25/26 09/01/2018 PAYDOWN 34,815 34,815 31,632 33,068 1,747 1,747 34,815 1,589 08/25/2026 1FE 31359L-2M-6 FNMA 1996-7 Z 6.500% 04/25/26 09/01/2018 PAYDOWN 163,964 163,964 147,664 157,272 6,692 6,692 163,964 6,536 04/25/2026 1FE 31359L-2X-2 FNMA 1996 9-Z 6.500% 04/25/26 09/01/2018 PAYDOWN 25,474 25,474 22,194 24,253 1,221 1,221 25,474 1,097 04/25/2026 1FE 31359Q-DE-1 FNMA 1997-54 Z 6.500% 08/18/27 09/01/2018 PAYDOWN 11,504 11,504 9,902 10,900 604 604 11,504 501 08/18/2027 1FE 31359Q-UN-2 FNMA 97-56 Z 7.000% 09/18/27 09/01/2018 PAYDOWN 21,962 21,962 20,472 21,350 612 612 21,962 1,011 09/18/2027 1FE 31359X-RK-7 FNMA 2000-1 Z 7.000% 02/18/30 09/01/2018 PAYDOWN 65,074 65,074 59,419 60,729 4,345 4,345 65,074 3,065 02/18/2030 1FE 313921-AG-3 FNMA 2001-49 Z 6.500% 09/25/31 09/01/2018 PAYDOWN 20,740 20,740 18,922 19,755 985 985 20,740 941 09/25/2031 1FE 31392C-JG-0 FNMA 2002-18 ZA 6.500% 04/25/32 09/01/2018 PAYDOWN 24,202 24,202 25,294 24,868 (666) (666) 24,202 1,049 04/25/2032 1FE 31392C-VK-7 FNMA 2002-16 ZD 6.500% 04/25/32 09/01/2018 PAYDOWN 73,276 73,276 68,338 70,348 2,928 2,928 73,276 3,008 04/25/2032 1FE 31392D-LF-7 FNMA 2002-36 ZG 6.500% 06/25/32 09/01/2018 PAYDOWN 193,312 193,312 179,865 185,477 7,835 7,835 193,312 8,454 06/25/2032 1FE 31392K-HU-3 FHLMC 2445 Z 6.500% 05/15/32 09/01/2018 PAYDOWN 139,983 139,983 131,221 135,142 4,841 4,841 139,983 5,849 05/15/2032 1FE 31392M-AD-4 FHLMC 2448 Z 6.500% 05/15/32 09/01/2018 PAYDOWN 18,456 18,456 17,197 17,729 727 727 18,456 816 05/15/2032 1FE 31392R-MA-6 FHLMC 2470 CLASS Z 6.000% 07/15/32 09/01/2018 PAYDOWN 94,495 94,495 87,758 91,242 3,253 3,253 94,495 3,979 07/15/2032 1FE 31393G-V3-5 FHLMC 2533 Z 5.500% 12/15/32 09/01/2018 PAYDOWN 22,008 22,008 19,854 21,053 955 955 22,008 791 12/15/2032 1FE 31394P-PA-5 FHLMC SERIES 2755 CLASS ZM 5.000% 09/01/2018 PAYDOWN 610,986 610,986 535,241 576,592 34,394 34,394 610,986 20,431 02/15/2034 1FE 31394V-BT-6 FNMA SERIES 2005-116 CLASS TZ 5.500% 09/01/2018 PAYDOWN 189,289 189,289 173,990 181,717 7,572 7,572 189,289 6,910 01/25/2036 1FE 31394Y-CR-3 FHLMC SERIES 2801 CLASS CZ 5.500% 09/01/2018 PAYDOWN 348,847 348,847 311,367 331,200 17,647 17,647 348,847 12,586 05/15/2034 1FE 31396C-3Y-4 FHLMC SER R003 ZA 5.500% 10/15/35 09/01/2018 PAYDOWN 317,596 317,596 292,690 305,559 12,037 12,037 317,596 11,573 10/15/2035 1FE 31396J-CB-9 FHLMC SER 3124 CL EZ 5.500% 03/15/36 09/01/2018 PAYDOWN 206,334 206,334 188,866 198,455 7,879 7,879 206,334 7,558 03/15/2036 1FE 3199999. Subtotal - Bonds - U.S. Special Revenues 7,331,674 7,331,674 6,989,808 7,157,279 174,395 174,395 7,331,674 212,637 XXX XXX Bonds - Industrial and Miscellaneous (Unaffiliated) 00003#-AC-7 A&E TELEVISION NETWORKS, LLC SERIES C SR NT 08/14/2018 ALLISON-WILLIAMS 11,790,480 12,000,000 12,000,000 12,000,000 12,000,000 (209,520) (209,520) 443,520 08/22/2024 1 031652-BE-9 AMKOR TECHNOLOGIES INC SR UNSEC 6.625% 08/23/2018 CALL 100.0000 588,000 588,000 591,675 588,293 (293) (293) 588,000 28,351 06/01/2021 3FE STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE D - PART 4 Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter 1 2 3 4 5 6 7 8 9 10 Change In Book/Adjusted Carrying Value 16 17 18 19 20 21 22 11 12 13 14 15 Total Total NAIC Current Change in Foreign Desig- Year's Book/ Exchange Book/ Bond nation Prior Year Current Other Than Adjusted Change in Adjusted Foreign Interest/ Stated or Book/ Unrealized Year's Temporary Carrying Book Carrying Exchange Realized Stock Con- Market CUSIP Number of Adjusted Valuation (Amor- Impairment Value /Adjusted Value at Gain Gain Total Gain Dividends tractual In- Ident- For- Disposal Name Shares of Consid- Actual Carrying Increase/ tization)/ Recog- (11 + 12 - Carrying Disposal (Loss) on (Loss) on (Loss) on Received Maturity dicator ification Description eign Date of Purchaser Stock eration Par Value Cost Value (Decrease) Accretion nized 13) Value Date Disposal Disposal Disposal DuringYear Date (a) 126304-AK-0 CSC HOLDINGS INC NOTES 7.625% 07/15/18 07/15/2018 MATURITY 2,000,000 2,000,000 2,045,000 2,003,889 (3,889) (3,889) 2,000,000 152,500 07/15/2018 4FE 206786-AA-3 CONDUENT FIN / XEROX BUS 144A SR UNSEC 07/13/2018 CALL 120.0000 4,800,000 4,000,000 4,125,000 4,107,888 692,112 692,112 4,800,000 242,667 12/15/2024 4FE 22410@-AA-4 CP9K, LLC SR NT 5.720% 06/30/27 09/30/2018 REDEMPTION 100.0000 65,023 65,023 65,023 65,023 65,023 2,481 06/30/2027 2 29335@-AA-1 ENHANCED CAPITAL CONNECTICUT SERIES 2011A 09/15/2018 REDEMPTION 100.0000 28,100 28,100 28,100 28,100 28,100 12/15/2020 1 29364W-AJ-7 ENTERGY LOUISIANA LLC 1ST MTGE 6.500% 09/01/2018 MATURITY 4,500,000 4,500,000 4,496,895 4,499,744 256 256 4,500,000 292,500 09/01/2018 1FE 33632*-UJ-4 FSB (CONOCOPHILLIPS) LEASING CERTIFICATES 09/10/2018 REDEMPTION 100.0000 170,453 170,453 170,453 170,453 170,453 9,039 12/10/2020 1 33812@-AA-5 FITCH GROUP, INC. SR NT 5.120% 08/09/21 08/09/2018 REDEMPTION 100.0000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 102,400 08/09/2021 2 37362@-AA-0 GEORGIA TRANSMISSION CORP 1ST MTGE 5.590% 09/30/2018 REDEMPTION 100.0000 50,000 50,000 50,000 50,000 50,000 2,096 06/30/2030 1 39121J-AG-5 GREAT RIVER ENERGY 144A 1ST MTGE 7.233% 07/01/2018 REDEMPTION 100.0000 108,588 108,588 108,588 108,588 108,588 7,854 07/01/2038 1FE 42208@-AA-8 HD SALEM, OR LANDLORD, LLC SR NT 6.250% 09/30/2018 REDEMPTION 100.0000 86,493 86,493 86,493 86,493 86,493 3,605 11/30/2030 1 454889-AN-6 INDIANA MICHIGAN POWER SR NTS 7.000% 09/07/2018 CALL 102.1771 10,217,713 10,000,000 9,932,600 9,989,138 228,575 228,575 10,217,713 684,444 03/15/2019 2FE 590188-JF-6 MERRILL LYNCH & CO BNDS 6.500% 07/15/18 07/15/2018 MATURITY 10,000,000 10,000,000 10,910,000 10,211,171 (211,171) (211,171) 10,000,000 650,000 07/15/2018 1FE 59748T-AA-7 MIDLAND COGEN VENTURE 144A 6.000% 09/15/2018 REDEMPTION 100.0000 539,925 539,925 539,925 539,925 539,925 32,396 03/15/2025 2FE 61166W-AN-1 MONSANTO SR UNSEC 4.200% 07/15/34 07/12/2018 EXCHANGE 7,010,691 7,000,000 7,012,390 7,010,948 (257) (257) 7,010,691 147,000 07/15/2034 2FE 636180-BJ-9 NATIONAL FUEL GAS CO NTS 8.750% 05/01/19 09/07/2018 CALL 103.7860 15,567,900 15,000,000 16,038,900 15,186,343 381,557 381,557 15,567,900 1,115,625 05/01/2019 2FE 677730-A*-4 OHIO VALLEY ELECTRIC CORP. SERIES 2006-B 08/15/2018 REDEMPTION 100.0000 77,396 77,396 78,161 78,045 (649) (649) 77,396 4,953 06/15/2040 2 684181-AA-8 ORANGE COGEN FNDG SR SEC NT-144A 8.175% 09/15/2018 REDEMPTION 100.0000 312,500 312,500 312,500 312,500 312,500 19,160 03/15/2022 2FE 68557N-AA-1 ORBITAL ATK INC. SR UNSEC 5.250% 07/19/2018 CALL 102.6250 3,078,750 3,000,000 3,018,750 3,006,104 72,646 72,646 3,078,750 126,000 10/01/2021 3FE 698525-AA-0 PANOCHE ENERGY CENTER 144A SR NTS 6.885% 08/31/2018 REDEMPTION 100.0000 357,386 357,386 357,386 357,386 357,386 24,606 07/31/2029 3FE
E05.1 70109H-AE-5 PARKER-HANNIFIN CORPORATION NTS 6.550% 07/15/2018 MATURITY 12,650,000 12,650,000 13,608,744 12,710,253 (60,253) (60,253) 12,650,000 828,575 07/15/2018 1FE 724060-AA-6 PIPELINE FUNDING CO LLC 144A PASS THRU 07/15/2018 REDEMPTION 100.0000 42,000 42,000 42,000 42,000 42,000 3,150 01/15/2030 2AM 742741-AA-9 PROCTER AND GAMBLE ESOP 9.360% 01/01/21 07/01/2018 REDEMPTION 100.0000 241,000 241,000 269,515 245,048 (4,048) (4,048) 241,000 22,558 01/01/2021 1FE 776696-AC-0 ROPER TECHNOLOGIES INC SR NTS 6.250% 09/13/2018 CALL 103.0950 14,433,300 14,000,000 14,149,880 14,031,944 401,356 401,356 14,433,300 904,167 09/01/2019 2FE 832248-AZ-1 SMITHFIELD FOODS INC 144A SR UNSEC 4.250% 08/29/2018 SEAPORT GROUP LLC 4,714,853 5,000,000 5,020,870 5,019,264 (1,208) (1,208) 5,018,056 (303,203) (303,203) 230,208 02/01/2027 2FE 832389-AC-4 SMITHS FOOD & DRUG SEC PASS THRU 9.200% 07/02/2018 REDEMPTION 100.0000 2,269,497 2,269,497 2,387,060 2,272,445 (2,948) (2,948) 2,269,497 208,794 07/02/2018 1FE 844741-AU-2 SOUTHWEST AIRLINES COMPANY ETC 8.000% 09/28/2018 VARIOUS 1,393,854 1,393,848 1,393,848 1,393,848 6 6 1,393,854 129,453 01/02/2021 1FE 857449-#R-3 WILM TRUST (SSB AIRBUS) SER B SEC LN CERT 09/15/2018 REDEMPTION 100.0000 208,045 208,045 208,045 208,045 208,045 18,703 09/15/2018 1 857449-#T-9 WILM TRUST (SSB AIRBUS) SER B SEC LN CERT 09/15/2018 REDEMPTION 100.0000 207,839 207,839 207,839 207,839 207,839 18,685 09/15/2018 1 857449-#V-4 WILM TRUST (SSB AIRBUS) SER B SEC LN CERT 09/15/2018 REDEMPTION 100.0000 206,591 206,591 206,591 206,591 206,591 18,573 09/15/2018 1 857449-#X-0 WILM TRUST (SSB AIRBUS) SER B SEC LN CERT 09/15/2018 REDEMPTION 100.0000 206,390 206,390 206,390 206,390 206,390 18,554 09/15/2018 1 90131H-AM-7 21ST CENTURY FOX AMERICA SR UNSEC 8.250% 08/10/2018 MATURITY 4,000,000 4,000,000 4,020,960 4,001,160 (1,160) (1,160) 4,000,000 330,000 08/10/2018 2FE 94978#-CF-2 WELLS FARGO SCP 2004F-ENNIS-TX, L.P. 6.050% 09/10/2018 REDEMPTION 100.0000 103,365 103,365 105,024 104,173 (808) (808) 103,365 4,171 11/10/2026 2 124900-B@-9 CCL INDUSTRIES INC SER C GUAR SR NTS 7.090% A 07/08/2018 MATURITY 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 709,000 07/08/2018 2 740212-AE-5 PRECISION DRILLING CORP CO GTD 6.500% A 08/01/2018 CALL 102.1670 1,849,176 1,809,955 1,815,988 1,810,894 38,282 38,282 1,849,176 58,824 12/15/2021 3FE 706448-AH-0 PEMEX FINANCE SR UNSEC 9.150% 11/15/18 D 08/15/2018 REDEMPTION 100.0000 1,125,000 1,125,000 1,079,100 1,122,300 2,700 2,700 1,125,000 77,203 11/15/2018 1FE F4967#-AB-9 IMERYS SA SERIES B SENIOR NOTES 5.280% D 08/06/2018 MATURITY 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 528,000 08/06/2018 2 G7219*-AP-0 PREMIER OIL UK LIMITED SERIES D MAKE WHOLE D 08/15/2018 DEUTSCHE BANK 2,117,438 2,301,463 196 2,117,242 2,117,242 2,117,438 195,989 05/31/2021 5 3899999. Subtotal - Bonds - Industrial and Miscellaneous (Unaffiliated) 139,117,746 137,648,857 138,689,693 135,982,421 3,648,048 3,648,048 139,630,469 (512,723) (512,723) 8,395,804 XXX XXX 8399997. Total - Bonds - Part 4 161,083,473 159,614,584 148,687,352 157,563,097 4,511,264 4,511,264 (906,714) 161,167,647 428,549 (512,723) (84,174) 8,660,505 XXX XXX 8399998. Total - Bonds - Part 5 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 8399999. Total - Bonds 161,083,473 159,614,584 148,687,352 157,563,097 4,511,264 4,511,264 (906,714) 161,167,647 428,549 (512,723) (84,174) 8,660,505 XXX XXX 8999997. Total - Preferred Stocks - Part 4 XXX XXX XXX 8999998. Total - Preferred Stocks - Part 5 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 8999999. Total - Preferred Stocks XXX XXX XXX 9799997. Total - Common Stocks - Part 4 XXX XXX XXX 9799998. Total - Common Stocks - Part 5 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 9799999. Total - Common Stocks XXX XXX XXX 9899999. Total - Preferred and Common Stocks XXX XXX XXX 9999999 - Totals 161,083,473 XXX 148,687,352 157,563,097 4,511,264 4,511,264 (906,714) 161,167,647 428,549 (512,723) (84,174) 8,660,505 XXX XXX (a) For all common stock bearing the NAIC market indicator "U" provide: the number of such issues STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE DB - PART A - SECTION 1 Showing all Options, Caps, Floors, Collars, Swaps and Forwards Open as of Current Statement Date 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Description Cumulative of Item(s) Strike Prior Current Credit Hedge Hedged, Price, Year(s) Year Initial Total Current Adjustment Quality Effectiveness Used for Type(s) Date of Rate or Initial Cost Cost of Book/ Unrealized Foreign Year’s to Carrying of at Inception Income Schedule/ of Maturity Number Index of Premium Premium Current Adjusted Valuation Exchange (Amorti- Value of Refer- and at Generation Exhibit Risk(s) Exchange, Counterparty Trade or of Notional Received (Received) (Received) Year Carrying Increase/ Change in zation)/ Hedged Potential ence Quarter-end Description or Replicated Identifier (a) or Central Clearinghouse Date Expiration Contracts Amount (Paid) Paid Paid Income Value Code Fair Value (Decrease) B./A.C.V. Accretion Item Exposure Entity (b) 0079999. Subtotal - Purchased Options - Hedging Effective XXX XXX XXX 0149999. Subtotal - Purchased Options - Hedging Other XXX XXX XXX 0219999. Subtotal - Purchased Options - Replications XXX XXX XXX 0289999. Subtotal - Purchased Options - Income Generation XXX XXX XXX 0359999. Subtotal - Purchased Options - Other XXX XXX XXX 0369999. Total Purchased Options - Call Options and Warrants XXX XXX XXX 0379999. Total Purchased Options - Put Options XXX XXX XXX 0389999. Total Purchased Options - Caps XXX XXX XXX 0399999. Total Purchased Options - Floors XXX XXX XXX 0409999. Total Purchased Options - Collars XXX XXX XXX 0419999. Total Purchased Options - Other XXX XXX XXX 0429999. Total Purchased Options XXX XXX XXX 0499999. Subtotal - Written Options - Hedging Effective XXX XXX XXX 0569999. Subtotal - Written Options - Hedging Other XXX XXX XXX 0639999. Subtotal - Written Options - Replications XXX XXX XXX 0709999. Subtotal - Written Options - Income Generation XXX XXX XXX 0779999. Subtotal - Written Options - Other XXX XXX XXX 0789999. Total Written Options - Call Options and Warrants XXX XXX XXX 0799999. Total Written Options - Put Options XXX XXX XXX
0809999. Total Written Options - Caps XXX XXX XXX E06 0819999. Total Written Options - Floors XXX XXX XXX 0829999. Total Written Options - Collars XXX XXX XXX 0839999. Total Written Options - Other XXX XXX XXX 0849999. Total Written Options XXX XXX XXX Currency Swap - BELL CANADA 07813ZAP9 BARCLAYS CAPITAL Receive US$, Pay CN$ D 1 Currency INC. 06/08/2004 02/23/2032 1,929,499 6.9175%(7.30%) (10,492) (63,440) (281,237) 54,080 35,338 100/100 Currency Swap - BELL CANADA 07813ZAL8 BARCLAYS CAPITAL Receive US$, Pay CN$ D 1 Currency INC. 06/08/2004 04/02/2031 5,417,440 7.4475%(7.85%) (31,318) (178,120) (808,545) 151,840 96,086 100/100 Currency Swap - WESTCOAST ENERGY CIBC WORLD MARKETS Receive US$, Pay CN$ 95751ZAH6 D 1 Currency CORP. 03/29/2004 03/20/2031 10,091,603 6.61%(7.15%) (50,494) (144,098) (1,118,896) 274,976 178,396 100/100 Currency Swap - AGT LIMITED DEUTSCHE BANK Receive US$, Pay CN$ 00126TAB1 D 1 Currency SECURITIES INC. 12/09/2003 09/22/2025 3,125,000 8.202%(8.80%) (18,004) (15,170) (266,556) 85,280 41,340 100/100 Currency Swap - LOBLAW COMPANIES LTD Receive US$, Pay CN$ 53948ZFN1 D 1 Currency JP MORGAN 09/18/2008 05/23/2019 4,412,907 1.1330/1 792,154 517,770 144,656 18,016 100/100 Currency Swap - LOBLAW COMPANIES LTD Receive US$, Pay CN$ 53948ZFM3 D 1 Currency JP MORGAN 09/18/2008 11/23/2018 6,629,307 1.1313/1 1,244,417 816,356 227,018 13,532 100/100 Currency Swap - ONTARIO STRIP Receive US$, Pay CN$ 68323ZGG8 D 1 Currency JP MORGAN 09/18/2008 07/15/2019 13,519,593 1.1335/1 2,398,100 1,563,605 436,929 61,708 100/100 Currency Swap - NOVA SCOTIA POWER CORP Receive US$, Pay CN$ 66988ZAT6 D 1 Currency WELLS FARGO 09/05/2014 07/14/2031 4,602,356 7.346%(7.450%) 36,511 722,000 910,588 104,000 82,437 100/100 Currency Swap - ONTARIO PROVINCE Receive US$, Pay CN$ 683234JT6 D 1 Currency WELLS FARGO 09/05/2014 06/02/2026 2,761,414 7.908%(8.000%) 23,931 433,200 525,827 62,400 38,437 100/100 Currency Swap - ENBRIDGE INC Receive US$, Pay CN$ 29251ZAK3 D 1 Currency WELLS FARGO 09/05/2014 06/18/2032 17,816,039 7.101%(7.200%) 136,901 2,794,140 3,525,435 402,480 330,318 100/100 Currency Swap - ONTARIO PROVINCE Receive US$, Pay CN$ 683234JQ2 D 1 Currency WELLS FARGO 09/05/2014 12/02/2025 2,301,178 8.407%(8.500%) 21,271 361,000 444,687 52,000 30,981 100/100 Currency Swap - LOBLAW COMPANIES LTD Receive US$, Pay CN$ 53948ZCQ7 D 1 Currency WELLS FARGO 09/05/2014 11/23/2022 9,182,736 1.0890/1 989,787 1,161,615 198,544 93,721 100/100 Currency Swap - BELL CANADA 077906JC0 Receive US$, Pay CN$ D 1 Currency WELLS FARGO 09/05/2014 06/01/2031 6,825,007 1.0989/1 312,768 591,897 64,034 121,851 100/100 Currency Swap - BELL CANADA 077906JA4 Receive US$, Pay CN$ D 1 Currency WELLS FARGO 09/05/2014 06/01/2030 6,828,114 1.0984/1 343,085 616,436 70,338 117,028 100/100 Currency Swap - MIDLAND MOTORWAYS Receive US$, Pay GBP G6076#AB1 D 1 Currency JP MORGAN 11/21/2017 12/31/2045 13,230,000 4.80%(3.34%) 137,640 208,000 (6,928) 482,000 345,313 100/100 Currency Swap - SANCTUARY HOUSING Receive US$, Pay GBP G7997@AM3 D 1 Currency WELLS FARGO 01/24/2018 12/23/2047 19,864,600 4.622%(3.01%) 210,449 1,621,200 2,102,658 1,621,200 537,171 100/100 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE DB - PART A - SECTION 1 Showing all Options, Caps, Floors, Collars, Swaps and Forwards Open as of Current Statement Date 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Description Cumulative of Item(s) Strike Prior Current Credit Hedge Hedged, Price, Year(s) Year Initial Total Current Adjustment Quality Effectiveness Used for Type(s) Date of Rate or Initial Cost Cost of Book/ Unrealized Foreign Year’s to Carrying of at Inception Income Schedule/ of Maturity Number Index of Premium Premium Current Adjusted Valuation Exchange (Amorti- Value of Refer- and at Generation Exhibit Risk(s) Exchange, Counterparty Trade or of Notional Received (Received) (Received) Year Carrying Increase/ Change in zation)/ Hedged Potential ence Quarter-end Description or Replicated Identifier (a) or Central Clearinghouse Date Expiration Contracts Amount (Paid) Paid Paid Income Value Code Fair Value (Decrease) B./A.C.V. Accretion Item Exposure Entity (b) Currency Swap - Receive US$, Pay EUR SERGO PLC D 1 Currency WELLS FARGO 07/12/2018 10/12/2033 14,007,600 4.534%(2.37%) 82,800 (263,250) 82,800 272,008 100/100 0879999. Subtotal - Swaps - Hedging Effective - Foreign Exchange 456,395 11,901,823 XXX 10,031,462 4,514,575 2,413,681 XXX XXX 0909999. Subtotal - Swaps - Hedging Effective 456,395 11,901,823 XXX 10,031,462 4,514,575 2,413,681 XXX XXX Credit Default Swap - Rec GBP 0.0000, Pay CREDIT TRS RSAT - GBP 1.0000 AUTOSTRADE D 1 Credit JP MORGAN 09/06/2018 06/20/2022 11,206,660 0.0000(1.0000) 735,885 (32,125) 501,459 501,459 (240,117) 5,691 2 0001 0929999. Subtotal - Swaps - Hedging Other - Credit Default 735,885 (32,125) 501,459 XXX 501,459 (240,117) 5,691 XXX XXX Currency Swap - NOVA SCOTIA POWER CORP Receive US$, Pay CN$ 66988ZAT6 D 1 Currency JP MORGAN 09/05/2014 07/14/2031 3,710,575 7.0803%(7.45%) (845,000) (20,016) (510,653) (510,653) 92,286 66,463 0002 Currency Swap - ONTARIO PROVINCE Receive US$, Pay CN$ 683234JT6 D 1 Currency JP MORGAN 09/05/2014 06/02/2026 2,226,345 7.5925%(8.00%) (507,000) (13,072) (252,544) (252,544) 72,777 30,989 0002 Currency Swap - ENBRIDGE INC Receive US$, Pay CN$ 29251ZAK3 D 1 Currency JP MORGAN 09/05/2014 06/18/2032 14,359,926 6.8328%(7.20%) (3,270,150) (75,582) (2,024,891) (2,024,891) 319,865 266,240 0002 Currency Swap - ONTARIO PROVINCE Receive US$, Pay CN$ 683234JQ2 D 1 Currency JP MORGAN 09/05/2014 12/02/2025 1,855,288 8.082%(8.50%) (422,500) (11,365) (208,758) (208,758) 63,489 24,978 0002 Currency Swap - LOBLAW COMPANIES LTD Receive US$, Pay CN$ 53948ZCQ7 D 1 Currency JP MORGAN 09/05/2014 11/23/2022 6,945,409 1.4398/1 (798,462) (824,260) (824,260) 144,794 70,886 0002 Currency Swap - BELL CANADA 077906JC0 Receive US$, Pay CN$ D 1 Currency JP MORGAN 09/05/2014 06/01/2031 5,077,173 1.4772/1 (245,275) (603,001) (603,001) 38,514 90,646 0002 Currency Swap - BELL CANADA 077906JA4
Receive US$, Pay CN$ D 1 Currency JP MORGAN 09/05/2014 06/01/2030 5,104,819 1.4692/1 (268,529) (598,018) (598,018) 48,195 87,492 0002 E06.1 Currency Swap - NOVA SCOTIA POWER CORP Receive CN$, Pay US$ 66988ZAT6 D 1 Currency JP MORGAN 09/05/2014 07/14/2031 4,594,955 7.450%(7.451%) (39,722) (917,701) (917,701) 30,122 82,304 0002 Currency Swap - ONTARIO PROVINCE Receive CN$, Pay US$ 683234JT6 D 1 Currency JP MORGAN 09/05/2014 06/02/2026 2,756,973 8.000%(8.028%) (26,149) (521,793) (521,793) (13,062) 38,375 0002 Currency Swap - ENBRIDGE INC Receive CN$, Pay US$ 29251ZAK3 D 1 Currency JP MORGAN 09/05/2014 06/18/2032 17,782,475 7.200%(7.208%) (149,349) (3,539,859) (3,539,859) 165,385 329,696 0002 Currency Swap - ONTARIO PROVINCE Receive CN$, Pay US$ 683234JQ2 D 1 Currency JP MORGAN 09/05/2014 12/02/2025 2,297,477 8.500%(8.527%) (23,106) (440,058) (440,058) (13,241) 30,931 0002 Currency Swap - LOBLAW COMPANIES LTD Receive CN$, Pay US$ 53948ZCQ7 D 1 Currency JP MORGAN 09/05/2014 11/23/2022 9,258,650 1.0801/1 (1,214,465) (1,214,465) (110,123) 94,496 0002 Currency Swap - BELL CANADA 077906JC0 Receive CN$, Pay US$ D 1 Currency JP MORGAN 09/05/2014 06/01/2031 6,936,957 1.0812/1 (648,570) (648,570) 45,122 123,849 0002 Currency Swap - BELL CANADA 077906JA4 Receive CN$, Pay US$ D 1 Currency JP MORGAN 09/05/2014 06/01/2030 6,931,030 1.0821/1 (671,041) (671,041) 29,511 118,792 0002 0939999. Subtotal - Swaps - Hedging Other - Foreign Exchange (6,356,916) (358,361) (12,975,612) XXX (12,975,612) 913,634 1,456,137 XXX XXX 0969999. Subtotal - Swaps - Hedging Other (6,356,916) 735,885 (390,486) (12,474,153) XXX (12,474,153) 673,517 5,691 1,456,137 XXX XXX Total Return Swap WELLS FARGO BANK NA D 1 Credit UNUM LIMITED 12/16/2016 08/01/2023 13,714,606 1.4389% 150,467 23,926 152,051 0001 Total Return Swap GENERAL ELECTRIC CO D 1 Credit UNUM LIMITED 12/16/2016 12/07/2028 13,558,808 0.7388% 76,654 (639,774) 217,047 0001 GOLDMAN SACHS GROUP Total Return Swap INC D 1 Credit UNUM LIMITED 12/16/2016 01/29/2026 8,549,639 1.6916% 111,408 51,362 115,763 0001 Total Return Swap JPMORGAN CHASE & CO D 1 Credit UNUM LIMITED 12/16/2016 12/18/2026 28,028,211 1.0863% 234,449 (53,386) 402,525 0001 Total Return Swap MCDONALD'S CORP D 1 Credit UNUM LIMITED 02/24/2017 02/03/2020 6,024,753 0.8450% 38,089 47,703 35,854 0001 Total Return Swap TEXTRON INC D 1 Credit UNUM LIMITED 02/24/2017 04/07/2020 8,562,058 1.9800% 128,288 175,719 53,868 0001 Total Return Swap CITIGROUP INC D 1 Credit UNUM LIMITED 02/24/2017 12/12/2018 13,966,626 1.0123% 106,448 120,274 34,917 0001 Total Return Swap BANK OF AMERICA CORP D 1 Credit UNUM LIMITED 02/24/2017 12/04/2019 7,310,065 0.9032% 49,201 44,348 40,865 0001 Total Return Swap METLIFE INC D 1 Credit UNUM LIMITED 02/24/2017 12/09/2024 827,469 0.7796% 4,903 228 10,343 0001 Total Return Swap METLIFE INC D 1 Credit UNUM LIMITED 02/24/2017 06/29/2020 2,738,439 0.4922% 10,188 (7,987) 18,113 0001 Total Return Swap AMERICAN INTL GROUP D 1 Credit UNUM LIMITED 02/24/2017 04/26/2023 5,073,734 1.5058% 58,345 87,758 54,311 0001 Total Return Swap GE CAPITAL D 1 Credit UNUM LIMITED 02/24/2017 05/24/2023 14,388,785 0.6836% 74,774 (178,844) 155,417 0001 Total Return Swap JOHNSON & JOHNSON D 1 Credit UNUM LIMITED 02/24/2017 11/06/2024 17,412,560 0.4849% 64,189 65,470 216,201 0001 MET LIFE GLOB FUNDING Total Return Swap I D 1 Credit UNUM LIMITED 02/24/2017 09/30/2026 14,628,394 0.7110% 79,549 (93,661) 206,877 0001 ANHEUSER-BUSCH INBEV Total Return Swap NV D 1 Credit UNUM LIMITED 02/24/2017 09/24/2025 3,043,390 0.8903% 20,824 (32,172) 40,260 0001 GOLDMAN SACHS GROUP Total Return Swap INC D 1 Credit UNUM LIMITED 02/24/2017 01/29/2026 15,839,410 1.5923% 193,993 (4,749) 214,467 0001 WALGREENS BOOTS Total Return Swap ALLIANCE D 1 Credit UNUM LIMITED 02/24/2017 11/20/2025 10,015,991 1.3157% 101,503 (133,326) 134,067 0001 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE DB - PART A - SECTION 1 Showing all Options, Caps, Floors, Collars, Swaps and Forwards Open as of Current Statement Date 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Description Cumulative of Item(s) Strike Prior Current Credit Hedge Hedged, Price, Year(s) Year Initial Total Current Adjustment Quality Effectiveness Used for Type(s) Date of Rate or Initial Cost Cost of Book/ Unrealized Foreign Year’s to Carrying of at Inception Income Schedule/ of Maturity Number Index of Premium Premium Current Adjusted Valuation Exchange (Amorti- Value of Refer- and at Generation Exhibit Risk(s) Exchange, Counterparty Trade or of Notional Received (Received) (Received) Year Carrying Increase/ Change in zation)/ Hedged Potential ence Quarter-end Description or Replicated Identifier (a) or Central Clearinghouse Date Expiration Contracts Amount (Paid) Paid Paid Income Value Code Fair Value (Decrease) B./A.C.V. Accretion Item Exposure Entity (b) ANHEUSER-BUSCH INBEV Total Return Swap NV D 1 Credit UNUM LIMITED 03/27/2018 05/25/2037 16,341,376 1.3335% 113,608 (68,107) 353,014 0001 Total Return Swap MCKESSON CORP D 1 Credit UNUM LIMITED 03/27/2018 02/17/2029 11,095,734 1.5694% 91,218 (156,257) 179,057 0001 WELLS FARGO & COMPANY Total Return Swap D 1 Credit UNUM LIMITED 03/27/2018 09/12/2029 2,820,742 1.1190% 15,669 (84,907) 46,777 0001 Total Return Swap MORGAN STANLEY D 1 Credit UNUM LIMITED 03/27/2018 03/09/2027 7,637,191 1.3294% 53,203 (33,527) 111,330 0001 VERIZON COMMUNICATIONS Total Return Swap D 1 Credit UNUM LIMITED 03/27/2018 11/02/2035 6,292,084 1.6598% 54,543 63,537 130,349 0001 VERIZON COMMUNICATIONS Total Return Swap D 1 Credit UNUM LIMITED 03/27/2018 10/27/2036 2,581,741 1.6919% 22,807 32,056 54,894 0001 AUTOSTRADE PER Total Return Swap L'ITALIA D 1 Credit UNUM LIMITED 09/06/2018 06/09/2022 12,007,376 3.2252% 26,094 29,282 116,261 0001 1009999. Subtotal - Swaps - Replication - Total Return 1,880,414 XXX (745,034) 3,094,628 XXX XXX 1029999. Subtotal - Swaps - Replication 1,880,414 XXX (745,034) 3,094,628 XXX XXX 1089999. Subtotal - Swaps - Income Generation XXX XXX XXX 1149999. Subtotal - Swaps - Other XXX XXX XXX 1159999. Total Swaps - Interest Rate XXX XXX XXX 1169999. Total Swaps - Credit Default 735,885 (32,125) 501,459 XXX 501,459 (240,117) 5,691 XXX XXX 1179999. Total Swaps - Foreign Exchange (6,356,916) 98,034 (1,073,789) XXX (2,944,150) 913,634 4,514,575 3,869,818 XXX XXX 1189999. Total Swaps - Total Return 1,880,414 XXX (745,034) 3,094,628 XXX XXX
1199999. Total Swaps - Other XXX XXX XXX E06.2 1209999. Total Swaps (6,356,916) 735,885 1,946,323 (572,330) XXX (3,187,725) 673,517 4,520,266 6,964,446 XXX XXX 1269999. Subtotal - Forwards XXX XXX XXX 1399999. Subtotal - Hedging Effective 456,395 11,901,823 XXX 10,031,462 4,514,575 2,413,681 XXX XXX 1409999. Subtotal - Hedging Other (6,356,916) 735,885 (390,486) (12,474,153) XXX (12,474,153) 673,517 5,691 1,456,137 XXX XXX 1419999. Subtotal - Replication 1,880,414 XXX (745,034) 3,094,628 XXX XXX 1429999. Subtotal - Income Generation XXX XXX XXX 1439999. Subtotal - Other XXX XXX XXX 1449999 - Totals (6,356,916) 735,885 1,946,323 (572,330) XXX (3,187,725) 673,517 4,520,266 6,964,446 XXX XXX
(a) Code Description of Hedged Risk(s)
(b) Code Financial or Economic Impact of the Hedge at the End of the Reporting Period 0001 Hedges the credit risk of assets. 0002 Hedges the currency risk of assets. STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY
Schedule DB - Part B - Section 1 - Futures Contracts Open N O N E
Schedule DB - Part B - Section 1B - Brokers with whom cash deposits have been made N O N E
E07 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE DB - PART D - SECTION 1 Counterparty Exposure for Derivative Instruments Open as of Current Statement Date 1 2 3 4 Book/Adjusted Carrying Value Fair Value 11 12 Credit 5 6 7 8 9 10 Master Support Fair Value of Contracts With Contracts With Description of Exchange, Agreement Annex Acceptable Book/Adjusted Book/Adjusted Exposure Net of Contracts With Contracts With Exposure Potential Off-Balance Counterparty or Central Clearinghouse (Y or N) (Y or N) Collateral Carrying Value >0 Carrying Value <0 Collateral Fair Value >0 Fair Value <0 Net of Collateral Exposure Sheet Exposure 0199999 - Aggregate Sum of Exchange Traded Derivatives XXX XXX XXX CIBC WORLD MARKETS CORP. Y Y (144,098) (1,118,896) 178,396 34,298 JP MORGAN Y Y 5,144,131 (12,975,610) 3,399,190 (12,982,538) 1,894,706 WELLS FARGO Y Y 10,010,000 7,659,979 9,879,144 (263,250) 1,623,952 0299999. Total NAIC 1 Designation 10,010,000 12,804,110 (13,119,708) 13,278,334 (14,364,684) 3,697,054 34,298 BARCLAYS CAPITAL INC. Y Y (241,560) (1,089,782) 131,424 DEUTSCHE BANK SECURITIES INC. Y Y (15,172) (266,559) 41,340 26,170 UNUM LIMITED Y Y 741,664 (1,486,698) 3,094,628 3,094,628 0399999. Total NAIC 2 Designation (256,732) 741,664 (2,843,039) 3,267,392 3,120,798 0899999. Aggregate Sum of Central Clearing houses
0999999 - Gross Totals 10,010,000 12,804,110 (13,376,440) 14,019,998 (17,207,723) 6,964,446 3,155,096 1. Offset per SSAP No. 64
E08 2. Net after right of offset per SSAP No. 64 12,804,110 (13,376,440) STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE DB - PART D - SECTION 2 Collateral for Derivative Instruments Open as of Current Statement Date
Collateral Pledged by Reporting Entity
1 2 3 4 5 6 7 8 9 Book/Adjusted Type of Exchange, Counterparty CUSIP Carrying Maturity Margin or Central Clearinghouse Type of Asset Pledged Identification Description Fair Value Par Value Value Date (I, V or IV) CIBC WORLD MARKETS CORP. Treasury 68323Z-GG-8 ONTARIO STRIP 0.0000 1,053,282 1,383,000 996,774 07/13/2019 V DEUTSCHE BANK SECURITIES INC. Treasury 912810-EF-1 U S TREASURY 8.7500 306,656 280,000 283,285 05/15/2020 V JP MORGAN Loan-backed and Structured 3128M9-X6-4 FGLMC 3.0000 14,237,381 14,752,669 14,417,805 07/01/2043 V UNUM LIMITED Treasury 912810-EF-1 US TREASURY 8.750 597,979 546,000 552,406 05/15/2020 V
0199999 - Total 16,195,298 16,961,669 16,250,270 XXX XXX
Collateral Pledged to Reporting Entity
1 2 3 4 5 6 7 8 9
E09 Book/Adjusted Type of Exchange, Counterparty CUSIP Carrying Maturity Margin or Central Clearinghouse Type of Asset Pledged Identification Description Fair Value Par Value Value Date (I, V or IV) WELLS FARGO Cash 000000-00-0 USD Cash 10,010,000 10,010,000 XXX V
0299999 - Total 10,010,000 10,010,000 XXX XXX XXX STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE DL - PART 1 SECURITIES LENDING COLLATERAL ASSETS Reinvested Collateral Assets Owned Current Statement Date (Securities lending collateral assets reported in aggregate on Line 10 of the Assets page and not included on Schedules A, B, BA, D, DB and E) 1 2 3 4 5 6 7 NAIC CUSIP Designation/ Book/Adjusted Identification Description Code Market Indicator Fair Value Carrying Value Maturity Date 0599999. Total - U.S. Government Bonds XXX 1099999. Total - All Other Government Bonds XXX 1799999. Total - U.S. States, Territories and Possessions Bonds XXX 2499999. Total - U.S. Political Subdivisions Bonds XXX 3199999. Total - U.S. Special Revenues Bonds XXX 3899999. Total - Industrial and Miscellaneous (Unaffiliated) Bonds XXX 4899999. Total - Hybrid Securities XXX 5599999. Total - Parent, Subsidiaries and Affiliates Bonds XXX 6099999. Subtotal - SVO Identified Funds XXX 6199999. Total - Issuer Obligations XXX 6299999. Total - Residential Mortgage-Backed Securities XXX 6399999. Total - Commercial Mortgage-Backed Securities XXX 6499999. Total - Other Loan-Backed and Structured Securities XXX 6599999. Total - SVO Identified Funds XXX 6699999. Total Bonds XXX 7099999. Total - Preferred Stocks XXX 7599999. Total - Common Stocks XXX 7699999. Total - Preferred and Common Stocks XXX 9999999 - Totals XXX General Interrogatories: 1. Total activity for the year Fair Value $ (2,679,500) Book/Adjusted Carrying Value $ (2,679,500) 2. Average balance for the year Fair Value $ 78,836 Book/Adjusted Carrying Value $ 78,836 3. Reinvested securities lending collateral assets book/adjusted carrying value included in this schedule by NAIC designation: NAIC 1 $ NAIC 2 $ NAIC 3 $ NAIC 4 $ NAIC 5 $ NAIC 6 $
E10 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE DL - PART 2 SECURITIES LENDING COLLATERAL ASSETS Reinvested Collateral Assets Owned Current Statement Date (Securities lending collateral assets included on Schedules A, B, BA, D, DB and E and not reported in aggregate on Line 10 of the Assets page) 1 2 3 4 5 6 7 NAIC CUSIP Designation/ Book/Adjusted Identification Description Code Market Indicator Fair Value Carrying Value Maturity Date NONE 9999999 - Totals XXX General Interrogatories: 1. Total activity for the year Fair Value $ Book/Adjusted Carrying Value $ 2. Average balance for the year Fair Value $ Book/Adjusted Carrying Value $
E11 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE E - PART 1 - CASH Month End Depository Balances 1 2 3 4 5 Book Balance at End of Each Month 9 During Current Quarter Amount of Amount of 6 7 8 Interest Received Interest Accrued Rate of During Current at Current Depository Code Interest Quarter Statement Date First Month Second Month Third Month * Bank of America Atlanta, GA 1,589,585 1,557,763 1,205,953 XXX Bank of America Hartford, CT (19,004,178) (19,458,786) (18,840,749) XXX Bank of New York Mellon Pittsburgh, PA (15,025) 118,012 8,621,776 XXX Federal Home Loan Bank of Cincinnati (a) Cincinnati, OH 1,473 429,935 288,353 514,502 XXX Fifth Third Bank Nashville, TN 397,113 733,191 644,719 XXX JPMorgan Chase Bank Chicago, IL 423,402 (31,376) 289,102 XXX JPMorgan Chase Bank New York, NY 5,350,152 6,737,655 1,015,448 XXX SunTrust Bank Chattanooga, TN 1,528,039 1,497,954 1,421,156 XXX Wells Fargo Bank Atlanta, GA 1,148,806 811,090 1,193,350 XXX 0199998. Deposits in ... 2 depositories that do not exceed the allowable limit in any one depository (See instructions) - Open Depositories XXX XXX 4 40,603 40,601 40,396 XXX 0199999. Totals - Open Depositories XXX XXX 1,477 (8,111,569) (7,705,544) (3,894,348) XXX 0299998. Deposits in ... depositories that do not exceed the allowable limit in any one depository (See instructions) - Suspended Depositories XXX XXX XXX 0299999. Totals - Suspended Depositories XXX XXX XXX 0399999. Total Cash on Deposit XXX XXX 1,477 (8,111,569) (7,705,544) (3,894,348) XXX 0499999. Cash in Company's Office XXX XXX XXX XXX XXX
0599999. Total - Cash XXX XXX 1,477 (8,111,569) (7,705,544) (3,894,348) XXX
E12 STATEMENT AS OF SEPTEMBER 30, 2018 OF THE PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY SCHEDULE E - PART 2 - CASH EQUIVALENTS Show Investments Owned End of Current Quarter 1 2 3 4 5 6 7 8 9 Book/Adjusted Amount of Interest Amount Received CUSIP Description Code Date Acquired Rate of Interest Maturity Date Carrying Value Due and Accrued During Year 0599999. Total - U.S. Government Bonds 1099999. Total - All Other Government Bonds 1799999. Total - U.S. States, Territories and Possessions Bonds 2499999. Total - U.S. Political Subdivisions Bonds 3199999. Total - U.S. Special Revenues Bonds Bonds - Industrial and Miscellaneous (Unaffiliated) - Issuer Obligations AUTOZONE INC 09/20/2018 2.350 10/19/2018 5,770,055 4,145 CABOT CORP 09/18/2018 2.350 10/09/2018 1,307,205 1,110 COMCAST CORP 09/25/2018 2.400 10/09/2018 11,672,096 4,671 COX ENTERPRISES 09/28/2018 2.370 10/01/2018 3,597,289 711 ENTERGY CORP 09/20/2018 2.390 10/19/2018 1,335,424 976 MCKESSON 09/24/2018 2.350 10/09/2018 8,162,999 3,732 MONDELEZ INTERNATIONAL 09/10/2018 2.410 12/03/2018 2,245,303 3,161 NISOURCE INC 09/19/2018 2.380 10/11/2018 5,190,440 4,121 OGLETHORPE POWER CORP 09/28/2018 2.450 10/09/2018 5,996,508 1,225 SOUTH JERSEY GAS COMPANY 09/24/2018 2.330 10/01/2018 2,731,762 1,238 WEC ENERGY GROUP INC 09/21/2018 2.400 10/12/2018 18,425,916 12,506 WESTAR ENERGY INC 09/21/2018 2.350 10/04/2018 13,647,409 8,915 NUTRIEN LTD 09/26/2018 2.600 11/27/2018 5,154,444 4,153 SUNCOR ENERGY INC 09/27/2018 2.400 10/15/2018 1,200,558 320 AMCOR LTD 09/26/2018 2.420 11/20/2018 2,179,910 733 3299999. Subtotal - Bonds - Industrial and Miscellaneous (Unaffiliated) - Issuer Obligations 88,617,318 51,717 3899999. Total - Industrial and Miscellaneous (Unaffiliated) Bonds 88,617,318 51,717 4899999. Total - Hybrid Securities 5599999. Total - Parent, Subsidiaries and Affiliates Bonds
E13 6099999. Subtotal - SVO Identified Funds 7799999. Total - Issuer Obligations 88,617,318 51,717 7899999. Total - Residential Mortgage-Backed Securities 7999999. Total - Commercial Mortgage-Backed Securities 8099999. Total - Other Loan-Backed and Structured Securities 8199999. Total - SVO Identified Funds 8399999. Total Bonds 88,617,318 51,717 Exempt Money Market Mutual Funds - as Identified by the SVO 4812C2-67-6 JPMORGAN CHASE BANK -US GOVT. MONEY MARKET 09/30/2018 XXX 600,050 5,387 8599999. Subtotal - Exempt Money Market Mutual Funds - as Identified by the SVO 600,050 5,387
8899999 - Total Cash Equivalents 89,217,368 51,717 5,387