FARMERS ANNUITY SEPARATE ACCOUNT a Form 485BPOS Filed

SECURITIES AND EXCHANGE COMMISSION

FORM 485BPOS Post-effective amendments [Rule 485(b)]

Filing Date: 2018-05-21 SEC Accession No. 0001193125-18-168311

(HTML Version on secdatabase.com)

FILER FARMERS ANNUITY SEPARATE ACCOUNT A Mailing Address Business Address FARMERS NEW WORLD FARMERS NEW WORLD CIK:1089912| IRS No.: 910335750 | State of Incorp.:WA | Fiscal Year End: 1231 LIFE INSURANCE CO LIFE INSURANCE CO Type: 485BPOS | Act: 33 | File No.: 333-85183 | Film No.: 18848173 3003 77TH AVENUE S E 3003 77TH AVENUE S E MERCER ISLAND WA 98040 MERCER ISLAND WA 98040 206-275-8140 FARMERS ANNUITY SEPARATE ACCOUNT A Mailing Address Business Address FARMERS NEW WORLD FARMERS NEW WORLD CIK:1089912| IRS No.: 910335750 | State of Incorp.:WA | Fiscal Year End: 1231 LIFE INSURANCE CO LIFE INSURANCE CO Type: 485BPOS | Act: 40 | File No.: 811-09547 | Film No.: 18848174 3003 77TH AVENUE S E 3003 77TH AVENUE S E MERCER ISLAND WA 98040 MERCER ISLAND WA 98040 206-275-8140

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents As filed with the Securities and Exchange Commission on May 21, 2018 Registration Nos. 333-85183 and 811-09547 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549

FORM N-4

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Pre-Effective Amendment No. ☐ Post-Effective Amendment No. 23 ☒ and REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 Amendment No. 24 ☒

FARMERS ANNUITY SEPARATE ACCOUNT A (Exact Name of Registrant)

FARMERS NEW WORLD LIFE INSURANCE COMPANY (Name of Depositor)

3003 77th Avenue S.E., Mercer Island, Washington 98040 (Address of Depositors Principal Executive Offices)

1-800-238-9671 (Depositors Telephone Number, including Area Code)

Name and Address of Agent for Service: Garrett B. Paddor General Counsel and Corporate Secretary Farmers New World Life Insurance Company 3003 77th Avenue S.E. Mercer Island, Washington 98040

Approximate Date of Proposed Public Offering: As soon as practicable after the effective date of this Registration Statement.

☒ immediately upon filing pursuant to paragraph (b) of Rule 485 ☐ on May 1, 2018, pursuant to paragraph (b) of Rule 485 ☐ 60 days after filing pursuant to paragraph (a)(1) of Rule 485 ☐ on (date) pursuant to paragraph (a)(1) of Rule 485

If appropriate, check the following box:

☐ this post-effective amendment designates a new effective date for a previously filed post-effective amendment.

Title of securities being registered: Units of interest in a separate account under individual flexible premium variable annuity contracts.

Individual Flexible Premium Variable Annuity Issued by Farmers New World Life Insurance Company Through Farmers Annuity Separate Account A Home Office Service Center 3003 77th Avenue SE P. O. Box 724208 Mercer Island, Washington 98040 Atlanta, Georgia 31139 Phone: 1-800-238-9671 Phone: 1-877-376-8008 (toll free) 8:00 a.m. to 6:00 p.m. Eastern Time This prospectus describes the Farmers® Variable Annuity (the The subaccounts invest in the following 47 portfolios: Contract), an individual flexible premium variable annuity ❑ Calvert Variable Series, Inc. contract issued by Farmers New World Life Insurance Company. Calvert VP SRI Mid Cap Portfolio * The Contract allows you to accumulate a Contract Value, and later apply that Contract Value (less surrender charges) to receive ❑ Deutsche Variable Series I Class A Shares fixed annuity payments. This Contract is currently not being Deutsche Bond VIP issued. Deutsche Core Equity VIP * Deutsche CROCI® International VIP Investment Risk The Contract Value you accumulate under Deutsche Global Small Cap VIP the Contract will fluctuate daily, based on the investment ❑ Deutsche Variable Series II Class A Shares performance of the subaccounts of the Farmers Annuity Separate Deutsche Government & Agency Securities VIP Account A (the Variable Account) in which you invest. Each Deutsche Government Money Market VIP subaccount invests in one underlying portfolio. We do not Deutsche High Income VIP guarantee how any of the portfolios will perform. Deutsche CROCI® U.S. VIP This prospectus provides basic information that you should know Deutsche Small Mid Cap Growth VIP * before investing. Please read it carefully before investing and ❑ Dreyfus Variable Investment Fund Service Class keep it for future reference. Shares Dreyfus Opportunistic Small Cap Portfolio Replacing your existing annuity or life insurance policy with Dreyfus Quality Bond Portfolio * this Contract may not be to your advantage. ❑ The Dreyfus Sustainable U.S. Equity Portfolio, Inc. An investment in this Contract is not a bank deposit, and no bank Service Class Shares endorses or guarantees the Contract. The Contract is not insured ® or guaranteed by the Federal Deposit Insurance Corporation or ❑ Fidelity VIP Freedom Funds Service Class 2 Shares ® any other government agency. Fidelity VIP Freedom 2005 Portfolio Fidelity® VIP Freedom 2010 Portfolio Investing in this Contract involves risk, including possible Fidelity® VIP Freedom 2015 Portfolio loss of some or all of your investment. Fidelity® VIP Freedom 2020 Portfolio Fidelity® VIP Freedom 2025 Portfolio This Contract has 48 funding choices one Fixed Account Fidelity® VIP Freedom 2030 Portfolio (paying a guaranteed minimum fixed rate of interest) and 47 Fidelity® VIP Freedom Income Portfolio subaccounts.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document ❑ Fidelity® VIP FundsManager Portfolios Service Class 2 PAGE 1 Shares Fidelity® VIP FundsManager 20% Portfolio Fidelity® VIP FundsManager 50% Portfolio Fidelity® VIP FundsManager 70% Portfolio Fidelity® VIP FundsManager 85% Portfolio

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents ❑ Fidelity® Variable Insurance Products (VIP) Funds ❑ Principal Variable Contracts Funds, Inc. (PVC) Class Service Class Shares 2 Shares Fidelity® VIP Growth Portfolio PVC Capital Appreciation Account * Fidelity® VIP Index 500 Portfolio PVC Equity Income Account * Fidelity® VIP Mid Cap Portfolio PVC MidCap Account * PVC SmallCap Account ❑ Franklin Templeton Variable Insurance Products (VIP) Trust Class 2 Shares ❑ Principal Variable Contracts Funds, Inc. (PVC) Franklin Small-Mid Cap Growth VIP Fund Strategic Asset Management (SAM) Portfolios Class Franklin Small Cap Value VIP Fund 2 Shares Templeton Developing Markets VIP Fund * PVC SAM Balanced Portfolio PVC SAM Conservative Balanced Portfolio ❑ Goldman Sachs Variable Insurance Trust Institutional PVC SAM Conservative Growth Portfolio Class Shares PVC SAM Flexible Income Portfolio Goldman Sachs Strategic Growth Fund * PVC SAM Strategic Growth Portfolio Goldman Sachs Mid Cap Value Fund * Goldman Sachs Small Cap Equity Insights Fund * The subaccount that invests in this portfolio is closed to new ❑ Janus Aspen Series investors. Please see Subaccounts Closed to New Investors. Janus Henderson VIT Balanced Portfolio (Service Class Shares) Janus Henderson VIT Enterprise Portfolio (Service Class Shares) * Janus Henderson VIT Forty Portfolio (Institutional Class Shares)

❑ PIMCO Variable Insurance Trust (VIT) Administrative Class Shares PIMCO VIT Foreign Bond Portfolio (U.S. Dollar-Hedged) PIMCO VIT Low Duration Portfolio

A prospectus for each of the portfolios available through this Contract must accompany this prospectus. Please read these documents before investing and save them for future reference. To learn more about the Contract, you may want to read the Statement of Additional Information dated May 21, 2018 (known as the SAI). For a free copy of the SAI, contact us at: Farmers New World Life Insurance Company Service Center P.O. Box 724208 Atlanta, Georgia 31139 Phone: 1-877-376-8008 (toll free) 8:00 a.m. to 6:00 p.m. Eastern Time We have filed the SAI with the U.S. Securities and Exchange Commission (SEC) and have incorporated it by reference into this prospectus. (It is legally a part of this prospectus.) The SAIs table of contents appears at the end of this prospectus. The SEC maintains an Internet website (http://www.sec.gov) that contains the SAI and other information about us. You may also read and copy these materials at the SECs public reference room in Washington, D.C. Call 1-800-SEC-0330 for information about the SECs public reference room.

The Securities and Exchange Commission has not approved or disapproved this Contract or determined that this prospectus is accurate or complete. Anyone who tells you otherwise is committing a Federal crime.

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Glossary 4 Transfers 27 Summary 6 Asset Allocation Models 28 Your Contract in General 6 Automatic Asset Rebalancing Program 28 Premium Flexibility 6 Third Party Transfers 28 Death Benefit 7 Dollar Cost Averaging Program 29 Partial Withdrawals and Surrender 7 Telephone Transfers 29 Transfers 8 Policy and Procedures Regarding Disruptive Trading and Annuity Provisions 9 Market Timing 30 Federal Tax Status 9 Surrender and Partial Withdrawals 32 Inquiries 9 Surrender 32 Fee Table 9 Partial Withdrawals 33 Redemption Fees 10 Systematic Withdrawal Plan 33 Example of Maximum Charges 11 The Payout Period 34 Distribution Costs 11 The Annuity Start Date 34 Condensed Financial Information 11 Annuity Options 34 Farmers New World Life Insurance Company and the Determining the Amount of Your Annuity Payment 34 Fixed Account 11 Fixed Annuity Payments 34 Farmers New World Life Insurance Company 11 Guaranteed Annuity Tables 34 The Fixed Account 12 Description of Annuity Options 35 The Variable Account and the Portfolios 12 Guaranteed Retirement Income Benefit 35 The Variable Account 12 Death Benefit Before the Annuity Start Date 36 The Portfolios 13 Standard Death Benefit 37 Subaccounts Closed to New Investors 13 Guaranteed Minimum Death Benefit 37 Investment Objectives of the Portfolios 14 Distribution of Death Benefit Proceeds 38 Selection of the Portfolios 17 Death Benefit on or After the Annuity Start Date 39 Availability of the Portfolios 18 Investment Performance of the Subaccounts 39 Your Right to Vote Portfolio Shares 19 Federal Tax Considerations 39 Your Contract: The Pay-In Period 19 Taxation of Non-Qualified Contracts 41 Purchasing a Contract 19 Taxation of Qualified Contracts 42 When We Issue Your Contract 20 Other Tax Issues 43 Tax-Free Section 1035 Exchanges 20 Our Taxes 43 Cancellation The 10 Day Right-to-Examine Period 20 Federal Estate Taxes 43 Ownership Rights 21 Generation-Skipping Transfer Tax 43 Modifying the Contract 22 Permanent Estate and Gift Tax Exemption 44 Premiums 22 Annuity Purchases by Residents of Puerto Rico 44 Premium Flexibility 22 Annuity Purchases by Nonresident Aliens and Foreign Allocating Premiums 22 Corporations 44 Your Contract Values 23 Foreign Tax Credits 44 Contract Value 23 Possible Tax Law Changes 44 Subaccount Value 23 Additional Information 44 Accumulation Unit Value 24 When We Will Make Payments 44 Fixed Account Value 24 Distribution of the Contracts 45 Fees and Charges 24 Legal Proceedings 46 Mortality and Expense Risk Charge 24 Reports to Owners 46

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Asset-Based Administration Charge 25 Inquiries 46 Transfer Fee 25 Financial Statements 46 Surrender Charge 25 Statement of Additional Information Table of Contents 47 Records Maintenance Charge 26 Appendix ACondensed Financial Information A-1 Portfolio Management Fees and Expenses 27 Premium Taxes 27 PAGE 3 Other Taxes 27

For your convenience, we are providing a glossary of the special terms we use in this prospectus.

Accumulation Unit. An accounting unit we use to calculate subaccount values during the Pay-in Period. It measures the net investment results of each of the subaccounts. Annuitant. You are the Annuitant, unless you state otherwise in your application. Before any annuity payments begin, the Annuitant is the person (or persons) on whose life (or lives) the Contract is issued. When annuity payments begin, the Annuitant is a person during whose lifetime we may make payments under one of the annuity options. You may select joint Annuitants. Annuity Start Date. The date when we will begin to pay annuity payments to you or a person you designate under the annuity option you selected. Beneficiary. The person you select to receive the death benefit if you or the last surviving Annuitant dies before the Annuity Start Date. Business Day/Valuation Day. Each day that the NYSE is open for regular trading. Farmers New World Life Insurance Company is open to administer the Contract on each day the NYSE is open for regular trading. When we use the term business day in this prospectus, it has the same meaning as the term valuation day found in the Contract. Cash Value. The Contract Value minus any applicable surrender charge, records maintenance charge, and premium tax. Company (we, us, our, Farmers). Farmers New World Life Insurance Company. Contract month, year or anniversary. A month, year or anniversary as measured from the Issue Date. Contract Value. The sum of the amounts you have accumulated under the Contract. It is equal to the money you have under the Contract in the Variable Account and the Fixed Account. Final Annuity Date. The Contract Anniversary when the oldest Annuitant is age 95. Fixed Account. An option to which you can direct your money under the Contract. It provides a guarantee of principal and interest. The assets supporting the Fixed Account are held in our General Account and are not part of, or dependent on, the investment performance of the Variable Account. Fixed Account Value. Your Contract Value in the Fixed Account. Free Withdrawal Amount. An amount you can withdraw each Contract Year as a partial withdrawal or as part of a surrender without incurring a surrender charge. Fund or Funds. Investment companies that are registered with the SEC. This Contract allows you to invest in the portfolios of the funds that are listed on the front page of this prospectus. General Account. The account containing all of Farmers assets, other than those held in its separate accounts. Home Office. The address of our Home Office is 3003 77th Avenue S.E., Mercer Island, Washington 98040. Issue Date. The date on which we credit the initial Premium Payment to your Contract. It is also the date when, depending on your state of residence, we allocate your premium(s) either entirely to the Fixed Account, or to the Fixed Account and the subaccounts you selected on your application. Net Investment Factor. The factor we use to determine the value of an Accumulation Unit at the end of each valuation period. We determine the Net Investment Factor separately for each subaccount. NYSE. The New York Stock Exchange. Pay-in Period. The period that begins when we issue your Contract and ends on the Annuity Start Date. During the Pay-in Period, earnings accumulate on a tax-deferred basis until you take money out. Payout Period. The period beginning on the Annuity Start Date during which you or the person you designate will receive annuity payments.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Portfolio. A series of a Fund with its own objectives and policies, which represents shares of beneficial interest in a separate portfolio of securities and other assets. Portfolio is sometimes referred to herein as Fund.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Premium Payment. Amount you pay to us for the Contract. When we use the term Premium Payment in this prospectus, it means a Premium Payment less any applicable premium taxes. Qualified Contract. A Contract issued in connection with a retirement plan that qualifies for special Federal income tax treatment under the Tax Code. Service Center. The address of the Service Center is P.O. Box 724208, Atlanta, Georgia 31139. Infosys McCamish Systems, LLC (registered and known as McCamish Systems, LLC Insurance Administrators in the State of California only) is the administrator of the Contract. You can call the Service Center toll-free at 1-877-376-8008. Subaccount. A subdivision of the Variable Account that invests exclusively in shares of one portfolio of a fund. The investment performance of each subaccount is linked directly to the investment performance of the portfolio in which it invests. Surrender. The termination of a Contract at the option of the Owner. Tax Code. The Internal Revenue Code of 1986, as amended. Valuation Period. The period of time over which we determine the change in the value of the subaccounts in order to price Accumulation Units. Each valuation period begins at the close of regular trading on the NYSE (usually, 4:00 p.m. Eastern Time, 1:00 p.m. Pacific Time) on each Business Day and ends at the close of regular trading on the NYSE on the next Business Day. Variable Account. Farmers Annuity Separate Account A. It is a separate investment account divided into subaccounts, each of which invests in a corresponding portfolio of a designated fund. Variable Account Value. The portion of the total value of your Contract that is allocated to the subaccounts of the Variable Account. Written Notice. The Written Notice you must sign and send to us to request or exercise your rights as Owner under the Contract. To be complete, it must: (1) be in a form we accept; (2) contain the information and documentation that we determine is necessary, and (3) be received at our Service Center. You (your, Owner). The person(s) entitled to exercise all rights as owner under the Contract.

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This summary provides only a brief overview of the more important features of the Contract. You may obtain more detailed information about the Contract later in this prospectus and in the Statement of Additional Information (SAI). Please read the remainder of this prospectus carefully. Your Contract in General Tax-Deferred Accumulation. This annuity is a contract between you (the Contract Owner) and Farmers (an insurance company) in which you agree to make one or more payments to us and, in return, we agree to pay a series of payments to you at a later date. The Contract gives you the opportunity to accumulate earnings on your Contract Value that are generally tax-deferred until you take money out of the Contract by surrender, partial cash withdrawals, we make annuity payments to you, or we pay the death benefit. Your Contract Value will increase or decrease depending on the investment performance of the subaccounts, the premiums you pay, the fees and charges we deduct, the interest we credit to any money you place in the Fixed Account, and the effects of any Contract transactions (such as transfers and partial withdrawals) on your Contract Value. Annuity Pay-in and Payout Periods. Like all deferred annuities, the Contract has two phases: the Pay-in Period and the Payout Period. During the Pay-in Period, you can allocate money to any combination of investment alternatives offered under the Contract. The Payout Period begins once you start receiving regular annuity payments from the Contract. You may receive annuity payments under one of three fixed annuity payment options. The money you can accumulate during the Pay-in Period will directly determine the dollar amount of any annuity payments you receive. Death Benefit. The Contract also offers a death benefit payable if any Owner or the last surviving Annuitant dies before the Annuity Start Date. You may select for an additional fee the optional Guaranteed Minimum Death Benefit that provides an enhanced death benefit if the last surviving Annuitant dies before the Annuity Start Date. Retirement Savings Vehicle. The Contract is designed to be long-term in nature in order to provide significant annuity benefits for you. 1 You should not purchase this Contract if you intend to withdraw most of your Contract Value before you reach age 59 /2. You could incur significant tax penalties and lose the annuity benefits of the Contract if you withdraw your money before you are age 59 1/2 . Fixed Account. You may place money in the Fixed Account where we guarantee that it will earn interest for one-year periods at a guaranteed rate of at least 3%. We may declare higher rates of interest, but are not obligated to do so. Money you place in the Fixed Account will be reduced by some of the fees and charges we assess. The Fixed Account is part of our General Account. Variable Account. You may allocate premium(s) and Contract Value to one or more of the 47 subaccounts listed on the cover page. Each subaccount invests exclusively in one of the portfolios listed on the cover of this prospectus. We reserve the right to offer other subaccounts in the future. Your investment returns on amounts you allocate to the subaccounts will fluctuate each day with the investment performance of these subaccounts and will be reduced by Contract and portfolio company charges. You bear the entire investment risk for amounts you allocate to the subaccounts. Premium Flexibility Minimum Premium. This Contract requires you to pay an initial premium of at least $500. The initial premium is the only premium we require you to pay. Flexible Premiums. You can pay additional premiums of $500 or more ($50 or more for IRAs and/or if you authorize us to draw on an account by check or electronic debit) at any time before the Annuity Start Date. We may limit the total premium(s) paid to us during any Contract Year. You may also choose to have premiums deducted directly from your bank account. Right-to-Examine Period. You may cancel your Contract for a refund during the Right-to-Examine Period by returning it to our Home Office. In most states, the Right-to-Examine period expires 10 days after you receive the issued Contract. If you decide to cancel the Contract during the Right-to-Examine period, we will generally refund an amount equal to the greater of Contract Value at the end of the Business Day on which we receive the returned Contract at our Home Office or the sum of all premiums you have paid into the Contract (a Free-Look refund). The terms of the Right-to-Examine period may be different for Contract Owners over age 60 who purchase their Contract in California.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Contract Availability. The Contract was available for qualified and non-qualified retirement plans. The Contract is currently not available for sale. Death Benefit Standard Death Benefit. Unless you purchase the optional Guaranteed Minimum Death Benefit Rider, we will pay the standard death benefit to the beneficiary on the death of either any Owner or the last surviving Annuitant before the Annuity Start Date. If the last surviving Annuitant (or an Owner who is an Annuitant) dies before his or her 80th birthday, we will pay the standard death benefit, which equals the greater of: ? the Contract Value on the later of the date that we receive due proof of death and the date when we receive the beneficiarys instructions on payment method; or ? the minimum death benefit totaling the sum of all premiums paid, minus proportional reductions for withdrawals. In all other cases (including the death of an Owner who is not an Annuitant), the standard death benefit equals the Contract Value determined on the later of the date that we receive due proof of death and the date when we receive the beneficiarys instructions on payment method. Optional Guaranteed Minimum Death Benefit. On your application, you may select for an additional fee the optional Guaranteed Minimum Death Benefit. This rider may not be available in all states, and may vary by state. The Guaranteed Minimum Death Benefit provides an enhanced death benefit only if the last surviving Annuitant dies before the Annuity Start Date and before any Owner dies. This enhanced death benefit is payable on the death of an Owner only if that Owner is the first Owner to die and is the last surviving Annuitant. You may select the Guaranteed Minimum Death Benefit only on your Contract application. If you select this benefit, we will deduct a substantial additional daily charge from the subaccounts at an annual rate of 0.25%. On the death of the last surviving Annuitant, the Guaranteed Minimum Death Benefit will equal the greatest of the following: ? the standard death benefit described above; ? premiums you paid accumulated daily with interest compounded at 4% per year until the earlier of: (i) the date of death, or (ii) the Contract Anniversary on or next following the last surviving Annuitants 80th birthday; minus proportional reductions for withdrawals; or ? the Greatest Anniversary Value on any Contract Anniversary through the earlier of the date of death or the Contract Anniversary on or next following the last surviving Annuitants 80th birthday, minus proportional reductions for withdrawals. A different death benefit calculation applies if the last surviving Annuitant dies after the Contract Anniversary on or next following the Annuitants 80th birthday. See Death Benefit Before the Annuity Start Date, Guaranteed Minimum Death Benefit Provisions. Death Benefit On or After the Annuity Start Date. Upon the death of the Annuitant on or after the Annuity Start Date, we will pay any remaining guaranteed payments to the beneficiary as provided in the annuity option you selected. Partial Withdrawals and Surrender Partial Withdrawals. At any time during the Pay-in Period, you may submit a written request to withdraw part of your Cash Value, subject to the following rules. A partial withdrawal may have adverse tax consequences. ? You may make only 1 withdrawal each calendar quarter. ? You must request at least $100. ? You may not make a partial withdrawal if the withdrawal plus the surrender charge would cause the Contract Value to fall below $500. ? Surrender charges may apply. Surrender. At any time during the Pay-in Period, you may submit a written request to surrender your Contract and receive its Cash Value (that is, the Contract Value minus any surrender charge, minus any premium taxes not previously deducted, and minus the Records Maintenance Charge, unless waived). A surrender may have adverse tax consequences and be subject to a surrender charge. Your access to amounts held in Qualified Contracts may be restricted or prohibited.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Surrender Charge. We calculate the surrender charge on surrenders and partial withdrawals from the date you made the Premium Payment(s) being withdrawn. The surrender charge applies during the entire seven year period following each Premium Payment, and will vary depending on the number of years since you made the Premium Payment(s) being withdrawn.

Number of Complete Years From Date of Premium Payment: 0 1 2 3 4 5 6 7+ Surrender Charge: 7% 6% 5% 5% 4% 3% 2% 0 We do not assess a surrender charge on: ? the death benefit; ? the withdrawal of Premium Payments you paid us more than seven years ago; ? withdrawals that qualify under the waiver of surrender charge riders as extended hospitalization or confinement to a skilled nursing facility or terminal illness (see Surrender Charge); ? the Free Withdrawal Amount; or ? Free-Look refunds. Each Contract Year, you may withdraw the Free Withdrawal Amount, which is an amount up to the greater of: ? Contract Value minus the excess of total premiums over prior withdrawals that were previously assessed a surrender charge; or ? 10% of the Contract Value determined at the time the withdrawal is requested. Systematic Payment Plan. You may elect our systematic withdrawal plan option whereby, after the first Contract Year, you may receive periodic payments of at least $100 on a monthly basis during the Pay-in Period. Transfers At any time during the Pay-in Period and after the Right-to-Examine Period, you may make an unlimited number of transfers from and among the separate accounts. You may make one transfer each Contract Year from the Fixed Account. This Contract and the underlying portfolios are not designed for market timers. However, there is no assurance that we will be able to identify and prevent all market timing and other forms of disruptive trading in the Contract and the underlying portfolios. For a discussion of our policies and procedures on market timing and of the potential costs and risks to you that can result if market timing or disruptive trading occurs in the underlying portfolios, see Policy and Procedures Regarding Disruptive Trading and Market Timing below. Your transfer from the subaccounts or the Fixed Account must be a minimum of $100 or the total value in a subaccount or Fixed Account, if less. Your Contract Value remaining in a subaccount or the Fixed Account after a transfer must be at least $500, or we will transfer the total value. You can make a transfer from the Fixed Account only during the 30 days following a Contract Anniversary. You cannot make a transfer from any subaccount to the Fixed Account during the 6 month period following any transfer from the Fixed Account into one or more subaccounts. We charge $25 for the 13th and each additional transfer during a Contract Year. Transfers made under the asset rebalancing or dollar cost averaging programs do not count toward the 12 free transfers. Automatic Asset Rebalancing Program. Under the Automatic Asset Rebalancing (AAR) program, we will automatically transfer amounts among the subaccounts each quarter to reflect your most recent instructions for allocating premiums. No transfer fees are assessed under this program. Transfers under this program do not count toward the 12 free transfers permitted each Contract Year. We do not include any money allocated to the Fixed Account in the rebalancing. The AAR program is not available if you elect to enroll in the Dollar Cost Averaging program discussed below.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Dollar Cost Averaging Program. The Dollar Cost Averaging Program permits you to systematically transfer (on each monthly anniversary of the Issue Date) a set dollar amount from the Fixed Account to up to 8 subaccounts. The minimum transfer amount is $100. No transfer fees are assessed under this program. Transfers under this program

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents do not count toward the 12 free transfers permitted each Contract Year. The Dollar Cost Averaging program is not available if you elect to enroll in the Automatic Asset Rebalancing program discussed above. Annuity Provisions Annuity Options. You may receive income payments under one of three fixed annuity options beginning on the Annuity Start Date you select. The Final Annuity Date, which is the latest Annuity Start Date you may select, is the Contract Anniversary when the oldest Annuitant is age 95. You may receive income payments for a specific period of time, or for life with or without a guaranteed number of payments. We will use your Cash Value on the Annuity Start Date to calculate the amount of your income payments under the annuity option you choose. Federal Tax Status Generally, a Contracts earnings are not taxed until you take them out. For Federal tax purposes, if you take money out of a non-qualified Contract during the Pay-in Period, including a surrender or partial withdrawal payment, earnings come out first and are 1 taxed as ordinary income. Different tax consequences may apply for a Qualified Contract. If you are younger than 59 /2 when you take money out, you also may be charged a 10% Federal penalty tax on the taxable portion of the payment. The annuity payments you receive during the payout phase are considered partly a return of your original investment so that part of each payment is not taxable as income until the investment in the Contract has been fully recovered. Death benefits are taxable and generally are included in the income of the recipient as follows: if received under an annuity option, death benefits are taxed in the same manner as annuity payouts; if not received under an annuity option (for instance, if paid out in a lump sum), death benefits are taxed in the same manner as a surrender. For a further discussion of the Federal tax status of variable annuity contracts, see Federal Tax Considerations. Inquiries If you need additional information, please contact us at: Service Center P.O. Box 724208 Atlanta, Georgia 31139 Phone: 1-877-376-8008 (toll-free) 8:00 a.m. to 6:00 p.m. Eastern Time Fee Table

The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the Contract. The first table describes the fees and charges that you will pay at the time that you buy the Contract, take a partial withdrawal, annuitize the Contract, surrender the Contract, or transfer Contract Value between the subaccounts and/or the Fixed Account. State premium taxes may also be deducted.

Owner Transaction Expenses

Sales Charge Imposed on Premium Payments None Maximum Surrender Charge (as a percentage of your premium payment)1 7% Transfer Fee2 $25 after 12 transfers per year

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents The next table describes the fees and expenses that you will pay periodically during the time that you own the Contract, not including portfolio fees and expenses.

Periodic Charges other than Portfolio Expenses

Records Maintenance Charge3 $30 Variable Account Annual Expenses (as a percentage of average daily net assets in the subaccounts)

With Both the Guaranteed Minimum Death Benefit and the Guaranteed Retirement Income Benefit4 Mortality and Expense Risk Charge 1.45% Administrative Charge 0.20% Total Variable Account Annual Expenses 1.65%

With Either the Guaranteed Minimum Death Benefit or the Guaranteed Retirement Income Benefit4 Mortality and Expense Risk Charge 1.20% Administrative Charge 0.20% Total Variable Account Annual Expenses 1.40%

With Standard Death Benefit Only Mortality and Expense Risk Charge 0.95% Administrative Charge 0.20% Total Variable Account Annual Expenses 1.15%

1 We do not assess a surrender charge on death benefit payments. We do assess a surrender charge if you surrender your Contract, partially withdraw its Cash Value, or annuitize under the Contract while surrender charges are applicable. 2 We do not assess transfer fees on transfers under the Dollar Cost Averaging or Automatic Asset Rebalancing programs. Transfers under these programs do not count toward the twelve free transfers permitted each Contract Year. 3 We will also deduct the Records Maintenance Charge on the Annuity Start Date or the date you surrender your Contract. We waive this fee for Contracts with a Contract Value of $50,000 or more on the date the fee is assessed. 4 We no longer offer the Guaranteed Retirement Income Benefit Rider. If you have elected the Guaranteed Retirement Income Benefit rider and your initial Contract application was signed and dated before June 18, 2003, your Guaranteed Retirement Income Benefit rider remains in force, a 0.25% Mortality and Expense Risk Charge will continue to be assessed, and our obligations and duties to you under this rider will not change.

The following table shows the range of portfolio fees and expenses for the fiscal year ended December 31, 2017. Expenses of the portfolios may be higher or lower in the future. You can obtain more detailed information concerning each portfolios fees and expenses in the prospectus for each portfolio.

Range of Annual Operating Expenses for the Portfolios1

Lowest Highest Total Annual Portfolio Operating Expenses (total of all expenses that are deducted from portfolio 0.20% 1.42% assets, including management fees, 12b-1 fees, and other expenses)

1 The portfolio expenses used to prepare this table were provided to Farmers by the fund(s). Farmers has not independently verified such information. The expenses shown are those incurred for the year ended December 31, 2017. Current or future expenses may be greater or less than those shown.

Redemption Fees

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document A portfolio may assess a redemption fee of up to 2% on subaccount assets that are redeemed out of the portfolio in connection with a withdrawal or transfer. Each portfolio determines the amount of the redemption fee and when the fee is imposed. The redemption fee will reduce your Contract Value. For more information, see the portfolio prospectus. The expenses shown above are deducted by each underlying portfolio before the portfolio provides us with its daily net asset value. We then deduct applicable Variable Account charges from the net asset value to calculate

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents the unit value of the corresponding subaccount. The management fees and other expenses are more fully described in the prospectus for each underlying portfolio. Information relating to the portfolios was provided to us by the portfolios and was not independently verified by us. Example of Maximum Charges This Example is intended to help you compare the cost of investing in the Contract with the cost of investing in other variable annuity contracts. The Example shows the maximum costs of investing in the Contract, including transaction expenses, the Records Maintenance Charge of $30, the Variable Account charges of 1.65%, and maximum Annual Portfolio Operating Expenses of 1.42%. The Example assumes that you invested $10,000 in the portfolio with the highest expenses, chose the riders with the highest costs, and stayed in those options under the Contract for the time periods indicated. The Example also assumes that your investment earned a steady 5% return each year. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: (1) If you surrender or annuitize the Contract at the end of the applicable time period:

1 year 3 years 5 years 10 years $913 $1,410 $2,006 $3,411

(2) If you do not surrender or annuitize the Contract at the end of the applicable time period:

1 year 3 years 5 years 10 years $313 $957 $1,625 $3,411 The Example does not reflect transfer fees or premium taxes (which may range up to 3.5%, depending on the jurisdiction). It also does not reflect any taxes or tax penalties you may be required to pay if you surrender your Contract. The Record Maintenance Charge of $30 is reflected as an annual charge of 0.030% that is determined by dividing total Record Maintenance Charges collected during 2017 ($108,570) by total average net assets attributable to the Contract during 2017 ($365,434,509). Please remember that the Example is an illustration and does not represent past or future expenses. Your actual expenses may be higher or lower than those shown. Similarly, your rate of return may be more or less than the 5% assumed in the Example. Distribution Costs For information concerning the compensation paid for the sale of the Contracts, see Distribution of the Contracts. Condensed Financial Information In Appendix A, we have included a financial history of two sets of Accumulation Unit values that reflect the highest and lowest levels of Variable Account Annual Expenses available under the Contract. Tables for one other set of Accumulation Unit values (that reflect the middle level of Variable Account Annual Expenses) are included in the SAI. Farmers New World Life Insurance Company and the Fixed Account

Farmers New World Life Insurance Company Farmers New World Life Insurance Company (Farmers) is the stock life insurance company issuing the Contract. We are obligated to pay all benefits under the Contracts. Farmers is located at 3003 77th Avenue S.E., Mercer Island, Washington 98040, and was incorporated under Washington law on February 21, 1910. Farmers established the Variable Account to support the investment options under this Contract and under other variable annuity contracts Farmers may issue. Farmers General Account supports the Fixed Account under the Contract. Farmers is a direct wholly-owned subsidiary of Farmers Group, Inc. (FGI). FGI is a stock holding and management company. The ultimate controlling parent of FGI is Zurich Insurance Group Ltd, a publicly traded holding company listed on the Swiss Exchange, but not publicly traded in the U.S.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Farmers markets a broad line of individual life insurance products, including universal life, term life, variable universal life and whole life insurance products. Farmers currently is licensed to sell insurance in 49 states and the District of Columbia. Farmers is not licensed in New York. The Fixed Account You may allocate some or all of your Premium Payments and transfer some or all of your Contract Value to the Fixed Account. The Fixed Account offers a guarantee of principal accumulating at a specified rate of interest that will be reduced by deductions for fees and expenses. The Fixed Account is part of Farmers General Account. We use our General Account assets to support our insurance and annuity obligations other than those funded by our separate investment accounts. Subject to applicable law, Farmers has sole discretion over investment of the Fixed Accounts assets. Farmers bears the full investment risk for all amounts contributed to the Fixed Account. Farmers guarantees that the amounts allocated to the Fixed Account will be credited interest daily at a net effective annual rate of at least the minimum guaranteed interest rate indicated in your contract. The guaranteed minimum interest rate will be between 1.0% and 3.0%. We will determine any interest rate credited in excess of the guaranteed rate at our sole discretion. All assets in the General Account are subject to our general liabilities from business operations. Money you place in the Fixed Account will earn interest that is compounded annually and accrues daily at the current interest rate in effect at the time of your allocation. We intend to credit the Fixed Account with interest at the current rates in excess of the minimum guaranteed rate indicated in your contract, but we are not obligated to do so. We have no specific formula for determining current interest rates. The Fixed Account Value will not share in the investment performance of our General Account. Because we, in our sole discretion, anticipate changing the current interest rate from time to time, different allocations You make to the Fixed Account will be credited with different current interest rates. You assume the risk that interest credited to amounts in the Fixed Account may not exceed the minimum guaranteed interest rate indicated in your Contract. We reserve the right to change the method of crediting interest from time to time, provided that such changes do not reduce the guaranteed rate of interest below the minimum guaranteed interest rate indicated in your Contract per year or shorten the period for which the interest rate applies to less than one year (except for the year in which such amount is received or transferred). We currently allocate amounts from the Fixed Account for partial withdrawals, transfers to the subaccounts, or charges for the monthly deduction on a last in, first out basis (LIFO) for the purpose of crediting interest. The Fixed Account is not registered with the Securities and Exchange Commission (SEC). The disclosures included in this prospectus about the Fixed Account are for your information and have not been reviewed by the staff of the SEC. However, Fixed Account disclosures may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in this prospectus. The Variable Account and the Portfolios

The Variable Account Farmers established the Farmers Annuity Separate Account A (the Variable Account) as a Variable Account under the law of the state of Washington on April 6, 1999. Farmers owns the assets in the Variable Account. The Variable Account is registered with the SEC as a unit investment trust under the Investment Company Act of 1940, as amended (the 1940 Act) and qualifies as a separate account within the meaning of the Federal securities laws. The Variable Account will receive and invest Premium Payments paid under the Contracts and under other variable annuity contracts we may issue in the future. The income, gains and losses, realized or unrealized, from assets allocated to the Variable Account shall be credited to or charged against the Variable Account, without regard to other income, gains or losses of any other account we own or arising out of any other business we may conduct. Although we own the assets in the Variable Account, these assets are held separately from our other assets and are not part of our General Account. The portion of the assets of the Variable Account equal to the required reserves and other contract liabilities of the

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Variable Account are not chargeable with liabilities that arise from any other business that we conduct. We have the right to transfer to our General Account any assets of the Variable Account that are in excess of such reserves and other liabilities.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents The Variable Account is divided into subaccounts, each of which invests in shares of a portfolio of a fund. The Variable Account is subject to the laws of the State of Washington, which regulate the operations of insurance companies domiciled in Washington. Changes to the Variable Account. We reserve the right in our sole discretion, and subject to applicable law, to add, close, remove, or combine one or more subaccounts, combine the Variable Account with one or more other separate accounts, or operate the Variable Account as a different kind of investment company. Subject to obtaining any approvals or consents required by law, the assets of one or more subaccounts may also be transferred to any other subaccount if, in our sole discretion, conditions warrant. In addition, we reserve the right to modify provisions of the Contract to reflect changes to the subaccounts and the Variable Account and to comply with applicable law. Some of these future changes may be the result of changes in applicable laws or interpretation of the law. You may obtain additional information regarding the substitutions of investments and resolving conflicts among funds in the SAI. You can obtain the SAI (at no cost) by writing to the Service Center at the address shown on the back cover or by calling 1-877-376-8008. The Portfolios Each subaccount of the Variable Account invests exclusively in shares of a designated portfolio of a fund. Shares of each portfolio are purchased and redeemed at net asset value, without a sales charge. Any dividends and distributions from a portfolio are reinvested at net asset value in shares of that portfolio. Each fund available under the Contract is registered with the SEC under the 1940 Act as an open-end, management investment company. Such registration does not involve supervision of the management or investment practices or policies of the funds by the SEC. The assets of each portfolio are separate from the assets of any other portfolio, and each portfolio has separate investment objectives and policies. As a result, each portfolio operates as a separate investment portfolio and the income or losses of one portfolio has no effect on the investment performance of any other portfolio. Each of the portfolios is managed by an investment adviser registered with the SEC under the Investment Advisers Act of 1940, as amended. Each investment adviser is responsible for the selection of the investments of the portfolio. These investments must be consistent with the investment objective, policies and restrictions of that portfolio. Some of the portfolios have been established by investment advisers that manage retail mutual funds sold directly to the public having similar names and investment objectives to the portfolios available under the Contract. While some of the portfolios may be similar to, and may in fact be modeled after, publicly traded mutual funds, you should understand that the portfolios are not otherwise directly related to any publicly traded mutual fund. Consequently, the investment performance of publicly traded mutual funds and any similarly named portfolio may differ substantially from the portfolios available through this Contract. An investment in a subaccount, or in any portfolio, including the Deutsche Government Money Market VIP, is not insured or guaranteed by the U.S. Government and there can be no assurance that the Deutsche Government Money Market VIP will be able to maintain a stable net asset value per share. During extended periods of low interest rates, and due in part to insurance charges, the yields on the money market subaccount may become extremely low and possibly negative. Subaccounts Closed to New Investors Eleven subaccounts, which invest in the following portfolios, are closed to new investors:

Portfolio Fund Effective Date Calvert VP SRI Mid Cap Portfolio Calvert Variable Series, Inc. September 1, 2008 Deutsche Core Equity VIP Deutsche Variable Series I September 1, 2008 Deutsche Small Mid Cap Growth VIP Deutsche Variable Series II September 1, 2008 Dreyfus VIF Quality Bond Portfolio Dreyfus Variable Investment Fund September 1, 2008 Templeton Developing Markets VIP Fund Franklin Templeton Variable Insurance Products September 1, 2008 Trust Goldman Sachs Strategic Growth Fund Goldman Sachs Variable Insurance Trust September 1, 2008 Goldman Sachs Mid Cap Value Fund Goldman Sachs Variable Insurance Trust May 1, 2006 Janus Henderson VIT Enterprise Portfolio Janus Aspen Series September 1, 2008

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Principal PVC Equity Income Account Principal Variable Contracts Funds, Inc. September 1, 2008 Principal PVC MidCap Account Principal Variable Contracts Funds, Inc. September 1, 2008 Principal PVC Capital Appreciation Account Principal Variable Contracts Funds, Inc. September 1, 2008

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents If you purchased your Contract before the effective date shown in the table above, and had Contract Value allocated to an affected subaccount on the effective date, you may: (1) remain invested in the affected subaccount; (2) continue to allocate new premium to the affected subaccount; and (3) transfer into and out of the affected subaccount.

However, if and when you fully transfer out of an affected subaccount, you will not be permitted to allocate new premium to that subaccount or to transfer Contract Value into or out of that subaccount. Investment Objectives of the Portfolios The following table summarizes each portfolios investment objective(s) and policies. There is no assurance that any of the portfolios will achieve its stated objective(s). You can find more detailed information about the portfolios, including a description of the risks, conditions of investing, and fees and expenses of each portfolio in the prospectuses for the portfolios that are attached to this prospectus. You should read the prospectuses carefully.

Portfolio Investment Objective and Investment Adviser Calvert VP SRI Mid Cap Portfolio * The fund seeks to provide long-term capital appreciation by investing primarily in a portfolio of the equity securities of mid-sized companies that are undervalued but demonstrate a potential for growth. Calvert Research and Management (CRM or the Adviser) is the investment adviser to the Portfolio. Deutsche Bond VIP (Series I) (Class A The fund seeks to maximize total return consistent with preservation of capital and Shares) prudent investment management. Deutsche Investment Management Americas Inc. is the investment adviser for the fund. Deutsche CROCI® U.S. VIP (Series II) The fund seeks to achieve a high rate of total return. Deutsche Investment (Class A Shares) Management Americas Inc. is the investment adviser for the fund. Deutsche Global Small Cap VIP (Series The fund seeks above-average capital appreciation over the long term. Deutsche I) (Class A Shares) Investment Management Americas Inc. is the investment adviser for the fund. Deutsche Government & Agency The fund seeks high current income consistent with preservation of capital. Deutsche Securities VIP (Series II) (Class A Investment Management Americas Inc. is the investment adviser for the fund. Shares) Deutsche Core Equity VIP (Series I) The fund seeks long-term growth of capital, current income and growth of income. (Class A Shares)* Deutsche Investment Management Americas Inc. is the investment adviser for the Fund. Deutsche High Income VIP (Series II) The fund seeks to provide a high level of current income. Deutsche Investment (Class A Share Class) Management Americas Inc. is the investment adviser for the fund. Deutsche CROCI® International VIP The fund seeks long-term growth of capital. Deutsche Investment Management (Series I) (Class A Share Class) Americas Inc. is the investment adviser for the fund. Deutsche Government Money Market The fund seeks maximum current income to the extent consistent with stability of VIP (Series II) (Class A Share Class) principal. Deutsche Investment Management Americas Inc. is the investment adviser for the fund. Deutsche Small Mid Cap Growth VIP The fund seeks long-term capital appreciation. Deutsche Investment Management (Series II) (Class A Shares)* Americas Inc. is the investment adviser for the fund. Dreyfus VIF Opportunistic Small Cap The fund seeks capital growth. The Dreyfus Corporation (Dreyfus) is the investment Portfolio (Service Class Shares) adviser for the fund. Dreyfus VIF Quality Bond Portfolio The fund seeks to maximize total return, consisting of capital appreciation and current (Service Class Shares)* income. The Dreyfus Corporation (Dreyfus) is the investment adviser for the fund.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Portfolio Investment Objective and Investment Adviser The Dreyfus Sustainable U.S. Equity The fund seeks long-term capital appreciation. The Dreyfus Corporation is the Portfolio, Inc. (Service Class Shares) investment adviser for the fund. Newton, an affiliate of Dreyfus, is the sub-adviser. Fidelity® VIP Growth Portfolio (Service The fund seeks to achieve capital appreciation. FMR (the Adviser) is the funds Class Shares) manager. FMR Co., Inc. (FMRC) and other investment advisers serve as sub-advisers for the fund. Fidelity® VIP Index 500 Portfolio The fund seeks investment results that correspond to the total return of common (Service Class Shares) stocks publicly traded in the United States, as represented by the S&P 500® Index. Fidelity Management & Research Company (FMR) (the Adviser) is the funds manager. Geode Capital Management, LLC (Geode) and FMR Co., Inc. (FMRC) serve as sub-advisers for the fund. Fidelity® VIP Mid Cap Portfolio (Service The fund seeks long-term growth of capital. Fidelity Management & Research Class Shares) Company (FMR) (the Adviser) is the funds manager. FMR Co., Inc. (FMRC) and other investment advisers serve as sub-advisers for the fund. Fidelity® VIP Freedom 2005 (Service The fund seeks high total return with a secondary objective of principal preservation Class 2 Shares) as the fund approaches its target date and beyond. FMRC (the Adviser), an affiliate of Fidelity Management & Research Company (FMR), is the funds manager. Fidelity® VIP Freedom 2010 (Service The fund seeks high total return with a secondary objective of principal preservation Class 2 Shares) as the fund approaches its target date and beyond. FMRC (the Adviser), an affiliate of Fidelity Management & Research Company (FMR), is the funds manager. Fidelity® VIP Freedom 2015 (Service The fund seeks high total return with a secondary objective of principal preservation Class 2 Shares) as the fund approaches its target date and beyond. FMRC (the Adviser), an affiliate of Fidelity Management & Research Company (FMR), is the funds manager. Fidelity® VIP Freedom 2020 (Service The fund seeks high total return with a secondary objective of principal preservation Class 2 Shares) as the Fund approaches its target date and beyond. FMRC (the Adviser), an affiliate of Fidelity Management & Research Company (FMR), is the funds manager. Fidelity® VIP Freedom 2025 (Service The fund seeks high total return with a secondary objective of principal preservation Class 2 Shares) as the Fund approaches its target date and beyond. FMRC (the Adviser), an affiliate of Fidelity Management & Research Company (FMR), is the funds manager. Fidelity® VIP Freedom 2030 (Service The fund seeks high total return with a secondary objective of principal preservation Class 2 Shares) as the Fund approaches its target date and beyond. FMRC (the Adviser), an affiliate of Fidelity Management & Research Company (FMR), is the funds manager. Fidelity® VIP Freedom Income (Service The fund seeks high total return with a secondary objective of principal preservation. Class 2 Shares) FMRC (the Adviser), an affiliate of Fidelity Management & Research Company (FMR), is the funds manager. Fidelity® VIP FundsManager 20% The fund seeks high current income and, as a secondary objective, capital Portfolio (Service Class 2 Shares) appreciation. FMR Co., Inc. (FMRC) (the Adviser), an affiliate of Fidelity Management & Research Company (FMR), is the funds manager. Fidelity® VIP FundsManager 50% The fund seeks high total return. FMR Co., Inc. (FMRC) (the Adviser), an affiliate of Portfolio (Service Class 2 Shares) Fidelity Management & Research Company (FMR), is the funds manager. Fidelity® VIP FundsManager 70% The fund seeks high total return. FMR Co., Inc. (FMRC) (the Adviser), an affiliate of Portfolio (Service Class 2 Shares) Fidelity Management & Research Company (FMR), is the funds manager.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Portfolio Investment Objective and Investment Adviser Fidelity® VIP FundsManager 85% The fund seeks high total return. FMR Co., Inc. (FMRC) (the Adviser), an affiliate of Portfolio (Service Class 2 Shares) Fidelity Management & Research Company (FMR), is the funds manager. Franklin Small Cap Value VIP Fund The fund seeks long-term total return. Franklin Advisory Services, LLC is the (Class 2 Shares) investment adviser for the fund. Franklin Small-Mid Cap Growth VIP The fund seeks long-term capital growth. Franklin Advisers, Inc. is the investment Fund (Class 2 Shares) adviser for the fund. Goldman Sachs VIT Strategic Growth The fund seeks long-term growth of capital. Goldman Sachs Asset Management, L.P. Fund (Institutional Class Shares)* is the investment adviser for the fund (the Investment Adviser or GSAM). Goldman Sachs VIT Mid Cap Value The fund seeks long-term capital appreciation. Goldman Sachs Asset Management, Fund (Institutional Class Shares)* L.P. is the investment adviser for the fund (the Investment Adviser or GSAM). Goldman Sachs VIT Small Cap Equity The fund seeks long-term growth of capital. Goldman Sachs Asset Management, L.P. Insights Fund (Institutional Class is the investment adviser for the fund (the Investment Adviser or GSAM). Shares) Janus Henderson VIT Balanced Portfolio The fund seeks long-term capital growth, consistent with preservation of capital and (Service Shares) balanced by current income. Janus Capital Management LLC is the investment adviser for the fund. Janus Henderson VIT Forty Portfolio The fund seeks long-term growth of capital. Janus Capital Management LLC is the (Institutional Shares) investment adviser for the fund. Janus Henderson VIT Enterprise The fund seeks long-term growth of capital. Janus Capital Management LLC is the Portfolio (Service Shares)* investment adviser for the fund. PIMCO VIT Foreign Bond Portfolio The fund seeks maximum total return, consistent with preservation of capital and (U.S. Dollar-Hedged) (Administrative prudent investment management. PIMCO is the investment adviser for the fund. Class Shares) PIMCO VIT Low Duration Portfolio The fund seeks maximum total return, consistent with preservation of capital and (Administrative Class Shares) prudent investment management. PIMCO is the investment adviser for the fund. Principal PVC Equity Income Account The fund seeks to provide a current income and long-term growth of income and (Class 2 Shares)* capital. Principal Global Investors, LLC is the investment adviser for the fund. Principal PVC MidCap Account (Class 2 The fund seeks to provide long-term growth of capital. Principal Global Investors, Shares)* LLC is the investment adviser for the fund. Principal SAM Balanced Portfolio (Class The fund seeks to provide as high a level of total return (consisting of reinvested 2 Shares) income and capital appreciation) as is consistent with reasonable risk. Principal Global Investors, LLC is the investment adviser for the fund. Principal SAM Conservative Balanced The fund seeks to provide a high level of total return (consisting of reinvestment of Portfolio (Class 2 Shares) income and capital appreciation) as is consistent with reasonable risk. Principal Global Investors, LLC is the investment adviser for the fund. Principal SAM Conservative Growth The fund seeks to provide long-term capital appreciation. Principal Global Investors, Portfolio (Class 2 Shares) LLC is the investment adviser for the fund. Principal SAM Flexible Income Portfolio The fund seeks to provide a high level of total return (consisting of reinvestment of (Class 2 Shares) income with some capital appreciation). Principal Global Investors, LLC is the investment adviser for the fund. Principal SAM Strategic Growth The fund seeks to provide long-term capital appreciation. Principal Global Investors, Portfolio (Class 2 Shares) LLC is the investment adviser for the fund.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Portfolio Investment Objective and Investment Adviser Principal PVC SmallCap Account (Class The fund seeks long-term growth of capital. Principal Global Investors, LLC is the 2 Shares) investment adviser for the fund. Principal PVC Capital Appreciation The fund seeks to provide long-term growth of capital. Principal Global Investors, Account (Class 2 Shares) * LLC is the investment adviser for the fund. Templeton Developing Markets VIP Then fund seeks long-term capital appreciation. Templeton Asset Management Ltd. (Class 2 Shares)* (Asset Management) is the investment adviser for the fund.

*The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors. In addition to the Variable Account, the funds may sell shares to other separate investment accounts established by other insurance companies to support variable annuity contracts and variable life insurance policies as well as to qualified plans. It is possible that, in the future, it may become disadvantageous for variable life insurance separate accounts and variable annuity separate accounts to invest in the funds simultaneously. Although neither Farmers, nor the mutual funds currently foresee any such disadvantages, either to variable life insurance Policy Owners or to variable annuity contract Owners, each funds Board of Directors (or Trustees) will monitor events in order to identify any material conflicts between the interests of such variable life insurance Policy Owners and variable annuity contract Owners, and will determine what action, if any, it should take. Such action could include the sale of fund shares by one or more of the separate accounts, which could have adverse consequences. Material conflicts could result from, for example, (1) changes in state insurance laws, (2) changes in Federal income tax laws, or (3) differences in voting instructions given by those variable life insurance Owners and those given by variable annuity contract Owners. If a funds Board of Directors (or Trustees) were to conclude that separate funds should be established for variable life insurance and variable annuity separate accounts, Farmers will bear the attendant expenses, but variable life insurance Policy Owners and variable annuity contract Owners would no longer have the economies of scale resulting from a larger combined fund. Please read the attached prospectuses for the portfolios to obtain more complete information before you invest. Selection of the Portfolios The portfolios offered through the Contracts are selected by Farmers, and Farmers may consider various factors, including, but not limited to asset class coverage, the strength of the investment advisers (and/or subadvisers) reputation and tenure, brand recognition, performance, and the capability and qualification of each investment firm. We also consider whether the portfolio or one of its service providers (e.g., the investment adviser) will make payments to us in connection with certain administrative, marketing, and support services, or whether the portfolios adviser was an affiliate. We review the portfolios periodically and may remove a portfolio, or limit its availability to new premiums and/or transfers of Contract Value if we determine that a portfolio no longer satisfies one or more of the selection criteria and/or if the portfolio has not attracted significant allocations from Contract Owners. You are responsible for choosing to invest in the portfolios and the amounts allocated to each that are appropriate for your own individual circumstances and your investment goals, financial situation, and risk tolerance. Since you bear the investment risk of investing in the subaccounts, you should carefully consider any decisions regarding allocations of premium and Contract Value to each subaccount. In making your investment selections, we encourage you to thoroughly investigate all of the information regarding the portfolios that is available to you, including each portfolios prospectus, statement of additional information, and annual and semi- annual reports. Other sources such as the portfolios website or newspapers and financial and other magazines provide more current information, including information about any regulatory actions or investigations relating to a portfolio. After you select subaccounts in which to allocate premium or Contract Value, you should monitor and periodically re-evaluate your investment allocations to determine if they are still appropriate.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents You bear the risk that the Contract Value of your Contract may decline as a result of the performance of the subaccounts you have chosen. We do not provide investment advice and we do not recommend or endorse any of the particular portfolios available as investment options in the Contract. Revenue We Receive From the Portfolios and/or Their Service Providers. We (and our affiliates) may directly or indirectly receive payments from the portfolios and/or their service providers (investment advisers, administrators, and/or distributors), in connection with certain administrative, marketing and other services we (and our affiliates) provide and expenses we incur. We (and/or our affiliates) generally receive three types of payments: Rule 12b-1 Fees. We and/or our affiliate, Farmers Financial Solutions, LLC (FFS), the principal underwriter and distributor for the Contracts, receive some or all of the 12b-1 fees from the portfolios that charge a 12b-1 fee. See the prospectuses for the funds for more information. The 12b-1 fees we and/or FFS receive are calculated as a percentage of the average daily net assets of the portfolios owned by the subaccounts available under this Contract and certain other variable insurance products that we issue. Administrative, Marketing and Support Service Fees (Support Fees). We and/or FFS may receive compensation from some of the portfolios service providers for administrative and other services we perform relating to Variable Account operations that might otherwise have been provided by the portfolios. The amount of this compensation is based on a percentage of the average assets of the particular portfolios attributable to the Contract and to certain other variable insurance products that we issue. These percentages currently range from 0.00% to 0.25% and may be significant. Some service providers may pay us more than others. The chart below provides the current maximum combined percentages of 12b-1 fees and Support Fees that we anticipate will be paid to us and/or FFS on an annual basis:

Incoming Payments to Farmers and/or FFS From the following Funds and Maximum % From the following Funds and their Maximum % their Service Providers: of assets* Service Providers: of assets* Deutsche 0.25% Goldman Sachs 0.00% Dreyfus 0.25% Janus 0.25% Fidelity® 0.25% PIMCO 0.15% Franklin Templeton 0.25% Principal 0.25% *Payments are based on a percentage of the average assets of each underlying portfolio owned by the subaccounts available under this Contract and under certain other variable insurance products offered by us. Other Payments. We and/or FFS also may directly or indirectly receive additional amounts or different percentages of assets under management from some of the portfolios service providers with regard to the variable insurance products we issue. These payments may be derived, in whole or in part, from the advisory fees deducted from assets of the portfolios. Contract Owners, through their indirect investment in the portfolios, bear the costs of these advisory fees. Certain investment advisers or their affiliates may provide us and/or FFS with wholesaling services to assist us in the distribution of the Contract, may pay us and/or FFS amounts to participate in sales meetings or may reimburse our sales costs, and may provide us and/or FFS with occasional gifts, meals, tickets, or other compensation or reimbursement. The amounts in the aggregate may be significant and may provide the investment adviser (or other affiliates) with increased access to us and FFS. Proceeds from these payments made by the portfolios, investment advisers, and/or their affiliates may be used for any corporate purpose, including payment of expenses that we and FFS incur in promoting, issuing, distributing, and administering the Contracts, and that we incur, in our role as intermediary, in marketing and administering the underlying portfolios. We and our affiliates may profit from these payments.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document For further details about the compensation payments we make in connection with the sale of the Contracts, see the Distribution of the Contracts section. Availability of the Portfolios We cannot guarantee that each portfolio will always be available for investment through the Contracts.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents We reserve the right, subject to applicable law, to add new portfolios or classes of portfolio shares, remove or close existing portfolios or classes of portfolio shares, or substitute portfolio shares held by any subaccount for shares of a different portfolio. New or substitute portfolios or classes of portfolio shares may have different fees and expenses and their availability may be limited to certain classes of purchasers. If the shares of a portfolio are no longer available for investment, or if, in our judgment, further investment in any portfolio should become inappropriate, we may redeem the shares of that portfolio and substitute shares of another portfolio. We will not add, remove, or substitute any shares without notice and prior approval of the SEC and state insurance authorities, to the extent required by the 1940 Act or other applicable law. Your Right to Vote Portfolio Shares Even though we are the legal Owner of the portfolio shares held in the subaccounts, and have the right to vote on all matters submitted to shareholders of the portfolios, we will vote our shares only as you and other Contract Owners instruct, so long as such action is required by law. Before a vote of a portfolios shareholders occurs, you will receive voting materials from us. We will ask you to instruct us on how to vote and to return your proxy to us in a timely manner. You will have the right to instruct us on the number of portfolio shares that corresponds to the amount of Contract Value you have in the subaccount that invests in that portfolio (as of a date set by the portfolio). When we solicit your vote, the number of votes you have will be calculated separately for each subaccount in which you have an investment. If we do not receive voting instructions on time from some Owners, we will vote those shares in the same proportion as the timely voting instructions we receive. Should Federal securities laws, regulations and interpretations change, we may elect to vote portfolio shares in our own right. If required by state insurance officials, or if permitted under Federal regulation, we may disregard certain Owner voting instructions. If we ever disregard voting instructions, we will send you a summary in the next annual report to Contract Owners advising you of the action and the reasons we took such action. Your Contract: The Pay-In Period

The Pay-in Period begins when we issue your Contract and continues until the Annuity Start Date. The Pay-in Period will also end if you surrender your Contract, or a death benefit is payable, before the Payout Period. Purchasing a Contract Please note that we are no longer offering the Contract for sale. This Purchasing a Contract section is included in this prospectus for your information. To purchase a Contract, you must complete an application and send it with your initial premium to us through any authorized licensed agent who is also a registered representative of a broker-dealer having a selling agreement with the principal underwriter for the Contract, Farmers Financial Solutions, LLC. Contracts also may be sold to or in connection with retirement plans that qualify for special tax treatment. You may purchase a Contract with a Premium Payment of $500 or more. The first Premium Payment is the only one we require you to make. There may be delays in our receipt and processing of applications and Premium Payments that are outside of our control (for example, because of the failure of a selling broker-dealer or registered representative to forward the application to us or our Service Center promptly, or because of delays in determining whether the Contract is suitable for you). Any such delays will affect when your Contract can be issued and your premium is allocated among the investment choices you have selected. We reserve the right to decline an application for any reasons subject to the requirements imposed by law in the jurisdiction where the Contract was to be issued and delivered. If we decline your application, we will refund you the full amount of any premium you have paid. Who Should Purchase the Contract? We have designed this Contract for people seeking long-term tax deferred accumulation of assets, generally for retirement. This includes persons who have maximized their use of other retirement savings methods, such as 401(k) plans. The tax-deferred feature is most attractive to people in higher Federal and state income tax brackets. You should not buy

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document this Contract if you are looking for a short-term investment or if you cannot take the risk of getting back less money than you invested. You will have to hold the Contract for a period of time before the tax benefits will outweigh the fees assessed under this Contract.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents If you are purchasing the Contract through a tax favored arrangement, including IRAs, Roth IRAs, SIMPLE IRAs, and SEP IRAs, you should carefully consider the costs and benefits of the Contract (including annuity income benefits) before purchasing the Contract, since the tax favored arrangement itself provides for tax sheltered growth. The Contract is available for qualified and non-qualified retirement plans. Effective on August 1, 2009, we will not issue you a Contract for a non-qualified plan if you are older than age 85 on the Issue Date. For qualified plans the maximum issue age is 80. When We Issue Your Contract If your application is complete and your Premium Payment has been received at the Service Center, we will issue your Contract within two Business Days of its receipt, and credit your initial Premium Payment to your Contract. If your application is incomplete, we will contact you and seek to complete it within five Business Days. If we cannot complete your application within five Business Days after we receive it, we will return your Premium Payment, unless you expressly permit us to keep it. We will credit the payment as soon as we receive all necessary application information. The date we credit your initial Premium Payment to your Contract is the Issue Date. In most states, on the Issue Date we will allocate your initial premium to the subaccounts and the Fixed Account as you specified on your application. If your state requires us to return your initial premium(s) in the event you exercise your right to cancel the Contract, or if you purchase a Qualified Contract, we will allocate the initial premium(s) to the Fixed Account on the Issue Date. While held in the Fixed Account, your premium(s) will be credited with interest at current Fixed Account rates. The premium(s) will remain in the Fixed Account for the number of days in your states right to examine period, plus 10 days. On the first Business Day on or after that period, we will reallocate all Contract Value from the Fixed Account to the subaccounts and Fixed Account as you selected on the application. Tax-Free Section 1035 Exchanges You can generally exchange one annuity for another in a tax-free exchange under Section 1035 of the Tax Code. Before making an exchange, you should compare both contracts carefully. Remember that if you exchange another contract for the one described in this prospectus, you might have to pay a surrender charge on your old contract. There will be a new surrender charge period for this Contract and other charges may be higher (or lower) and the benefits may be different than your old contract. If the exchange does not qualify for Section 1035 treatment, you may have to pay Federal income and penalty taxes on the exchange. You should not exchange another contract for this one unless you determine, after knowing all the facts, that the exchange is in your best interest and not just better for the person trying to sell you this Contract (that person will generally earn a commission if you buy this Contract through an exchange or otherwise). Revenue Procedure 2008-24 sets forth the circumstances under which a direct transfer of a portion of the cash surrender value of an existing annuity contract would be treated by the IRS as a tax-free exchange. Under Rev. Proc. 2011-38: 1. The period of time in which cash cannot be withdrawn from either contract after a partial is 180 days; and 2. Annuity payments that satisfy the partial annuitization rule of Section 72(a)(2) of the Tax Code will not be treated as a distribution from either the old or new contract. Please consult a competent tax adviser before engaging in either a Code Section 1035 exchange or partial transfer. Cancellation The 10 Day Right-to-Examine Period You have the right to cancel the Contract for any reason during the Right-to-Examine Period by returning it to our Home Office at Mercer Island, Washington. In most states, the Right-to-Examine period expires 10 days after you receive the Contract. This period will be longer if required by state law. If you decide to cancel the Contract during the right-to-examine period, we will treat the Contract as if we never issued it. In most states, the amount of the refund will be the total premiums we have received, plus (or minus) any gains (or losses) in the amounts you invested in the subaccounts. If state law requires a return of premium, we will refund the greater of your original premium(s) or the Contract Value on the date we receive the Contract at our Home Office at the address shown on the front page of this prospectus. If you purchase a Qualified Contract, we will

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents return the premium(s) paid. If your state requires us to return your premium or if you have purchased a Qualified Contract, we will place your premium(s) in the Fixed Account for the number of days in your states right to examine period, plus 10 days. We will credit your premium(s) placed in the Fixed Account with interest at the current Fixed Account interest rates. We will pay the refund within 7 calendar days after we receive the Contract. The Contract will then be deemed void. Contracts Sold in California. If you purchase your Contract in California, and are 60 years of age or older at the time, the right-to-examine period lasts for 30 days from the date you receive the Contract. You may cancel the Contract at any time during the right-to-examine period by returning it to our Home Office at Mercer Island, Washington or to the agent who sold you the Contract. During the 30-day right-to-examine period (plus 10 days), we will place your premium in the Fixed Account, unless you specifically direct that we allocate your premium to the subaccounts and the Fixed Account you selected on the application. We will credit your premium(s) placed in the Fixed Account with interest at the current Fixed Account interest rate. If your premium is placed solely in the Fixed Account, we will refund to you all premiums and Contract fees you paid as of the Business Day on which we received your cancelled Contract at our Home Office (or your agent received your cancelled Contract, if earlier). If you have directed that your premium be invested in the subaccounts, rather than the Fixed Account, during the right-to- examine period, we will refund you only the Contract Value. The Contract Value refunded will be as of the Business Day we receive your cancelled Contract at our Home Office (or your agent received your cancelled Contract, if earlier). Any amounts refunded will reflect the investment performance of the subaccounts you selected, and the fees and charges that we deduct. You bear the risk that a refund of your Contract Value could be less than the premium you paid for this Contract. If you decide to cancel this Contract after the right-to-examine period has expired, you will pay surrender charges on that transaction. Ownership Rights The Contract belongs to the Owner named in the application. The Owner may exercise all of the ownership rights and options described in the Contract. The Annuitant is the Owner unless the application specifies a different person as the Owner. The Owner may designate the Annuitant (the person to receive the annuity payments) and beneficiary (the person to receive the death benefit when the Annuitant or Owner dies) in the application.

Changing the Owner: You may change the Owner by providing a written request to us at any time while the Annuitant is alive before the Annuity Start Date. Any change in Owner requires our written approval. The change takes effect on the date that the written request is signed. We are not liable for any actions we may have taken before we received the written request. Changing the Owner does not automatically change the beneficiary. Changing the Owner may have tax consequences. You should consult a tax adviser before changing the Owner.

Selecting and Changing the Beneficiary: If you designate more than one beneficiary, then each beneficiary shares equally in any death benefit proceeds unless the beneficiary designation states otherwise. If the beneficiary dies before the Owner/Annuitant, then any contingent beneficiary becomes the beneficiary. If both the beneficiary and contingent beneficiary die before the Owner/Annuitant, then we will pay the death benefit to the Owner or the Owners estate once the death benefit becomes payable. You can request a delay clause that provides that if the beneficiary dies within a specified number of days (maximum 180 days) following the Owners/Annuitants death, then the death benefit proceeds will be paid as if the beneficiary had died first. You can change the beneficiary generally by providing us with a written request signed by the Owner while the Annuitant is living. The request to change the beneficiary must be signed by the Owner. The change in beneficiary is effective as of the date you sign the written request, subject to any action taken before we receive the request. If you have named a beneficiary irrevocably, both you and the beneficiary must sign any request for change.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document We are not liable for any actions we may have taken before we received the written request.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Assigning the Contract: You may assign Contract rights before the Annuity Start Date. The Owner retains any ownership rights that are not assigned. The assignee may not change the Owner or the beneficiary, and may not elect or change an optional method of payment. We will pay any amount payable to the assignee in a lump sum. Claims under any assignment are subject to proof of interest and the extent of the assignment. The rights of the Owner and the beneficiary are subject to the rights of the assignee. We are not bound by any assignment unless duplicate signed forms are filed with us. We are not responsible for the validity of any assignment. We are not liable for any payment we made before we received Written Notice of the assignment. Assigning the Contract may have tax consequences. See the Federal Tax Considerations section of this prospectus for more information. Modifying the Contract Only one of our officers may modify the Contract or waive any of our rights or requirements under the Contract. Any modification or waiver must be in writing. No agent may bind us by making any promise not contained in the Contract. Upon notice to you, we may modify the Contract to: conform the Contract, our operations, or the Variable Accounts operations to the requirements of any law (or regulation issued by a government agency) to which the Contract, our company or the Variable Account is subject; assure continued qualification of the Contract under the Federal tax laws; or reflect a change in the Variable Accounts operations. If we modify the Contract, we will make appropriate endorsements to the Contract. If any provision of the Contract conflicts with the laws of a jurisdiction that govern the Contract, we will amend the provision to conform with such laws. Premiums

Premium Flexibility The initial premium of at least $500 is the only premium required to be paid under the Contract. You have the ability to determine the frequency of premiums you make after payment of the initial premium. You also may determine the amount and timing of each additional Premium Payment, except that Premium Payments must be at least $500 ($50 or more for IRAs and/or if you authorize us to draw on an account by check or electronic debit). You may make Premium Payments at any time until the earliest of: (a) the 1 Annuity Start Date; (b) the date you fully withdraw all Contract Value; or (c) the date you reach age 70 /2 for Qualified Contracts (other 1 than Roth IRAs, SEP or SIMPLE IRA employer contributions for employees over 70 /2 with earned income, rollovers and transfers). You must send all premiums to our Service Center. We will not accept total Premium Payments in excess of the cumulative premium limit that is specified on your Contract specification page. The Federal Tax Code may also limit the amount of premiums you may make. We may decline a Premium Payment for any reason permitted by law. Electronic Payments. If you authorize electronic payment of your premiums from your bank account, the total amount of premiums being debited must be at least $500 per year. You can make electronic payments on an annual, semi-annual, quarterly, or monthly basis for the applicable fraction of at least $500, but the total for the year must add up to at least $500. Allocating Premiums When you complete your application, you must instruct us to allocate your initial premium(s) to one or more subaccounts of the Variable Account and/or the Fixed Account according to the following rules. You must put at least 1% (and no less than $500) of each premium in any subaccount you select or the Fixed Account.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Allocation percentages must be in whole numbers and the sum of the percentages must equal 100.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents You can change the allocation instructions for additional premiums without charge at any time by providing us with written notification or by telephone authorization (or any other notification we deem satisfactory). Any allocation change will be effective on the date we record the change. Any future premiums will be allocated in accordance with the new allocation unless we receive contrary instructions. However, you may direct individual Premium Payments to a specific subaccount and/or to the Fixed Account without changing your instructions. Changing your allocation instructions will not change the way existing Contract Value is apportioned among the subaccounts or the Fixed Account. Investment returns from amounts allocated to the subaccounts will vary with the investment performance of the subaccounts and will be reduced by Contract charges. You bear the entire risk for amounts you allocate to the subaccounts. You should periodically review your Premium Payment allocation instructions in light of market conditions and your overall financial objectives. If your state requires us to return your initial premium(s) in the event you exercise your right to cancel the Contract, or if you purchase a Qualified Contract, we will allocate the initial premium(s) to the Fixed Account on the Issue Date. While held in the Fixed Account, your premium(s) will be credited with interest at the current Fixed Account rates. The premium(s) will remain in the Fixed Account for the number of days in your states right-to-examine period, plus 10 days. On the first Business Day on or after that period, we will reallocate all Contract Value from the Fixed Account to the subaccounts as you selected on the application. If your state only requires return of Contract Value in event you exercise your right to cancel the Contract, we will allocate the initial premium(s) as you instructed in the application on the Issue Date. The initial premium will be credited using the Accumulation Unit value next computed at the end of the Business Day that we issue your Contract. Our Business Day usually closes at the end of regular trading on the NYSE (usually, 4:00 p.m. Eastern Time, 1:00 p.m. Pacific Time). We credit any premiums you make to your Contract after the date of reallocation (or after the Issue Date, if applicable) using the Accumulation Unit value next computed at the end of a Business Day on which we receive them at our Service Center. Our Business Day closes at the end of regular trading on the NYSE (usually, 4:00 p.m. Eastern Time, 1:00 p.m. Pacific Time). If we receive your additional Premium Payments after the close of a Business Day, we will calculate and credit them as of the end of the next Business Day. Your Contract Values

Contract Value Your Contract Value: varies from day to day, depending on the investment performance of the subaccounts you choose, the interest credited to the Fixed Account, the charges deducted and any other Contract transactions (such as additional Premium Payments, transfers, and partial withdrawals); serves as the starting point for calculating values under a Contract; equals the sum of all values in each subaccount and the Fixed Account; is determined on the Issue Date and on each Business Day; on the Issue Date, equals the initial premium less any premium tax due; and has no guaranteed minimum amount and may be more or less than premiums paid. Subaccount Value Each subaccounts value is determined at the end of each Business Day. We determine your Contracts value in each subaccount by multiplying the number of units that your Contract has in the subaccount by the Accumulation Unit value of that subaccount at the end of the Business Day. The number of Accumulation Units in any subaccount on any Business Day equals: the initial Accumulation Units purchased at the unit value on the Issue Date; plus Accumulation Units purchased with additional premiums; plus Accumulation Units purchased via transfers from another subaccount or the Fixed Account; minus

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Accumulation Units redeemed to pay a pro-rata share of the Records Maintenance Charge, if assessed on that Business Day; minus Accumulation Units redeemed to pay for partial withdrawals, and any applicable surrender charges and premium taxes; minus

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Accumulation Units redeemed as part of a transfer to another subaccount, or the Fixed Account, and any applicable transfer fee. Every time you allocate or transfer money to or from a subaccount, we convert that dollar amount into Accumulation Units. We determine the number of Accumulation Units we credit to, or subtract from, your Contract by dividing the dollar amount of the allocation, transfer, or withdrawal, by the Accumulation Unit value for that subaccount at the end of the Valuation Period. Accumulation Unit Value The Accumulation Unit value (or price) of each subaccount will reflect the investment performance of the portfolio in which the subaccount invests. The Accumulation Unit value of each subaccount was originally established at the value shown in Appendix A. The Accumulation Unit value may increase or decrease from one Valuation Period to the next. The Accumulation Unit value for each subaccount is recalculated at the end of each Business Day by multiplying the Accumulation Unit value at the end of the immediately preceding Business Day by the Net Investment Factor for the Business Day for which the value is being determined. The new Accumulation Unit value reflects the investment performance of the underlying portfolio, and the daily deduction of: (i) the mortality and expense risk charge, (ii) any charge for enhanced benefit riders, and (iii) the daily administrative charge during each Valuation Period. For information on computing the Net Investment Factor, see the SAI. We determine a separate Accumulation Unit value for each subaccount. We will also determine separate sets of Accumulation Unit value reflecting the costs of the Guaranteed Minimum Death Benefit and the Guaranteed Retirement Income Benefit. Fixed Account Value On the Issue Date, your Fixed Account Value is equal to the premiums paid.

Your Fixed Account Value at the end of any Valuation Period (before the Annuity Start Date) is equal to: the total of premiums allocated to the Fixed Account; minus any applicable premium taxes; plus amounts transferred from the subaccounts; increased by any credited interest; and decreased by any transfers and withdrawals from the Fixed Account, and by any charges deducted from the Fixed Account. Your Contracts guaranteed minimum Fixed Account Value will not be less than the minimum values required by the state where we deliver your Contract. Fees and Charges

This section describes the fees and charges that we make under the Contract to compensate for: (1) the services and benefits we provide; (2) the costs and expenses we incur; and (3) the risks we assume. The fees and charges we deduct under this Contract may result in a profit to us. Mortality and Expense Risk Charge As compensation for assuming mortality and expense risks, we deduct a daily mortality and expense risk charge from your net assets in the subaccounts. The charge is equal, on an annual basis, to 0.95% of average daily net assets you have invested in the subaccounts. The mortality risk we assume is that Annuitants may live for a longer period of time than estimated when we established the guarantees in the Contract. Because of these guarantees, each Annuitant is assured that longevity will not have an adverse effect on the annuity payments received. The mortality risk that we assume also includes a guarantee to pay a death benefit if the Annuitant dies before the Annuity Start Date. The expense risk that we assume is the risk that the administrative fees and transfer fees (if imposed) may be insufficient to cover actual future expenses. We may use any profits from this charge to pay the costs of distributing the Contracts. If you selected either the Guaranteed Minimum Death Benefit or the Guaranteed Retirement Income Benefit (offering discontinued in July 2003), we will deduct an additional daily fee from your value in the subaccounts at an annual rate of 0.25% of average daily net assets you have invested in the subaccounts. If you chose both benefits, the additional daily fee will increase to an annual rate of 0.50%. See Fee Table.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Asset-Based Administration Charge We deduct a daily asset-based administration charge from each subaccount to help reimburse us for our administrative costs, such as Owner inquiries, changes in allocations, Owner reports, Contract maintenance costs and data processing costs. This charge is equal, on an annual basis, to 0.20% of your average daily net assets in the subaccounts. This charge is designed to help compensate us for the cost of administering the Contracts and the Variable Account. Transfer Fee A transfer fee of $25 will be imposed for the thirteenth and each subsequent transfer during a Contract Year. Any unused free transfers do not carry over to the next Contract Year. Each written or telephone request would be considered to be one transfer, regardless of the number of subaccounts affected by the transfer. Transfers you make through our asset rebalancing and dollar cost averaging programs do not count toward your twelve free transfers. We deduct the transfer fee from the amount transferred. Surrender Charge We do not deduct a charge for sales expenses from Premium Payments at the time Premium Payments are paid to us. However, we will deduct a surrender charge, if applicable, if you surrender your Contract or partially withdraw Cash Value before the Annuity Start Date, or if you annuitize your Contract. We do not assess a surrender charge on withdrawals made if the Contract terminates due to your death or the death of the last surviving Annuitant. As a general rule, the surrender charge equals a percentage of the Premium Payments withdrawn that: (a) we have held for less than seven years; and (b) are not eligible for a free withdrawal. The surrender charge applies during the entire seven year period following each Premium Payment. The applicable percentage depends on the number of years since you made the Premium Payment being withdrawn, as shown on this chart: Number of Completed Years from the Date of Premium Payment Surrender Charge Percentage 0 7% 1 6% 2 5% 3 5% 4 4% 5 3% 6 2% 7 and later 0% In determining surrender charges, we will deem premiums to be surrendered in the order in which we received them that is, on a first-in, first-out basis. Because surrender charges are based on the date each Premium Payment is made, you may be subject to a surrender charge, even though the Contract may have been issued many years earlier, if you have continued to make Premium Payments. We will not apply the Surrender Charge Percentage to an amount greater than the current Contract Value minus the Free Withdrawal Amount. This may occur, for instance, if the Contract Value is less than your total Premium Payments because of negative investment performance. When you request a withdrawal, you will be sent a check in the amount you requested (if available), less applicable tax withholding. If a surrender charge applies, your remaining Contract Value will be reduced by the dollar amount we send you, plus the surrender charge. The surrender charge is deducted pro-rata from all subaccounts and the Fixed Account in which the Contract is invested based on the remaining Contract Value in each subaccount and the Fixed Account, unless you request otherwise. Free Withdrawal Amount In any Contract Year before the Annuity Start Date, You may withdraw a portion of your Contract Value once each calendar quarter without incurring a surrender charge. This amount is called the Free Withdrawal Amount. Each Contract Year, the Free Withdrawal Amount is an amount up to the greater of:

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Contract Value minus the excess of total premiums paid over prior withdrawals that were previously assessed a surrender charge; or

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents 10% of the Contract Value determined at the time the withdrawal is requested, less any prior withdrawals in that Contract Year. Any premium that has been held by us for more than seven years will be subject to a 0% Surrender Charge Percentage. Examples of Surrender Charge Calculation: In the following examples, assume that a Contract is issued on July 1, 2002 with a $10,000 premium paid on the Issue Date. No subsequent premiums are paid. Partial Withdrawal Example. The Owner wishes to withdraw $4,000 on September 15, 2006. Suppose the Contract Value is $12,700 on that date, before the withdrawal. The Free Withdrawal Amount is the larger of (a) and (b): (a) $12,700 $10,000 = $2,700 (b) (10%)($12,700) = $1,270 The Free Withdrawal Amount is $2,700. The remaining portion of the withdrawal is subject to a surrender charge. Since this amount represents the withdrawal of premium paid between 3 and 4 years ago, the surrender charge percentage is 5%. The surrender charge is calculated as follows: ($4,000$2,700)(5%) = $65 The Owner would receive $4,000, and the remaining Contract Value would be reduced by $4,065 and would equal $8,635 after the $4,000 partial withdrawal is taken. Full Withdrawal Example: Positive Growth. The Owner wishes to fully surrender the Contract in year 3. The $30 Records Maintenance Charge and the surrender charge would be deducted from (the Contract Value minus the Free Withdrawal Amount). The surrender charge is calculated as follows: ($12,700$2,700)(5%)/1.05 = $476.19 The Owner would receive $12,700$476.19$30 = $12,193.81. Full Withdrawal Example: Negative Growth. Assume the same facts as above, but the Contract Value has declined to $8,000. The Free Withdrawal Amount is the larger of (a) and (b): (a) $8,000$10,000 = $-2,000 (b) (10%)($8,000) = $800 The surrender charge is calculated as follows: ($8,000$800)(5%)/1.05 = $342.86 The Owner would receive $8,000$342.86$30 = $7,627.14. Free withdrawals may be subject to federal income tax. They also may be subject to the 10% federal penalty tax if made before You reach age 59 1/2. Waiver of Surrender Charge Riders If state law permits and subject to certain restrictions, we will automatically issue two riders with your Contract. As described in these riders, we will waive the surrender charge: after an Annuitant (who is under age 75) has been confined in a hospital or skilled heath care facility continuously for at least 90 days; or (after one year from the effective date of the rider) if an Annuitant is diagnosed with a terminal illness after we issue the Contract and is expected to live for 12 months or less, up to an aggregate maximum withdrawal of $250,000. Records Maintenance Charge

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document At the end of each Contract Year before the Annuity Start Date, we will deduct a records maintenance charge of $30 from your Contract Value as partial reimbursement for our administrative expenses relating to the Contract. We will deduct the fee from each subaccount and the Fixed Account based on the proportion that the value in each subaccount and the Fixed Account bears to the total Contract Value. We will also deduct this charge on the Annuity Start Date, or the date you surrender the Contract.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents We will not deduct this fee after annuity payments have begun. We also currently waive deduction of the charge for Contracts whose Contract Value is $50,000 or more on the date of assessment. Portfolio Management Fees and Expenses Each portfolio deducts portfolio management fees and expenses from the amounts you have invested in the portfolios through the subaccounts. You pay these portfolio fees and expenses indirectly. In addition, some portfolios deduct 12b-1 fees at an annual rate of up to 0.25% of average daily portfolio assets. For 2017, total annual portfolio fees and charges for the portfolios offered through this Contract ranged from 0.20% to 1.42% of average daily portfolio assets. See the prospectuses for the portfolios for more information. Redemption Fees. A portfolio may assess a redemption fee of up to 2% on subaccount assets that are redeemed out of the portfolio in connection with a withdrawal or transfer. Each portfolio determines the amount of the redemption fee and when the fee is imposed. The redemption fee is retained by or paid to the portfolio and is not retained by us. The redemption fee will be deducted from your Contract Value. For more information on each portfolios redemption fee, see the portfolio prospectus. Premium Taxes Various states and other governmental entities charge a premium tax on annuity contracts issued by insurance companies. Premium tax rates currently range up to 3.5%, depending on the state. We are responsible for paying these taxes. If applicable, we will deduct the cost of such taxes from the value of your Contract either: from Premium Payments as we receive them, from Contract Value upon surrender or partial withdrawal, on the Annuity Start Date, or upon payment of a death benefit. Other Taxes Currently, no charge is made against the Variable Account for any federal, state or local taxes (other than premium taxes) that we incur or that may be attributable to the Variable Account or the Contracts. We may, however, deduct such a charge in the future, if necessary. Transfers

After the right-to-examine period has expired and before the Annuity Start Date, you may make transfers from the subaccounts or from the Fixed Account subject to the conditions stated below. We determine the amount you have available for transfers at the end of the Valuation Period when we receive your transfer request. We may modify or suspend the transfer privilege at any time. Transfers under the Contract are subject to the following conditions: You may make an unlimited number of transfers in a Contract Year from the subaccounts (subject to the Policy and Procedures Regarding Disruptive Trading and Market Timing section below). You may only make one transfer each Contract Year from the Fixed Account (unless you choose dollar cost averaging) during the 30 days following a Contract Anniversary. We measure a Contract Year from the anniversary of the Issue Date. You may not make a transfer into the Fixed Account during the six months following any transfer you make out of the Fixed Account to any subaccount(s). You may request transfers in writing (in a form we accept), or by telephone. You should send written requests to the Service Center. You must transfer at least the lesser of $100, or your total value in the subaccount, if less. If you request a transfer that would reduce the amount in a subaccount or Fixed Account below $500, we will transfer the entire amount in the subaccount.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document We deduct a $25 charge from the amount transferred or from the remaining Contract Value (your choice) for the 13th and each additional transfer in a Contract Year. Any unused free transfers do not carry over to the next Contract Year. Transfers you make pursuant to the asset rebalancing and dollar cost averaging programs do not count toward your 12 free transfers. For more information, see Fees and Charges.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents We consider each written or telephone request to be a single transfer, regardless of the number of subaccounts (or Fixed Account) involved. We will price complete transfer requests that are received at our Service Center before the NYSE closes for regular trading (usually, 4:00 p.m. Eastern Time, 1:00 p.m. Pacific Time) using the Accumulation Unit value determined at the close of that regular trading session of the NYSE. If we receive your complete transfer request after the close of regular trading on the NYSE, we will price the transfer request using the Accumulation Unit value determined at the close of the next regular trading session of the NYSE. We may suspend, restrict, modify or eliminate the transfer privilege at any time. Asset Allocation Models Asset allocation allows you to allocate your investments among various asset classes such as stock funds, international funds, bond funds, and money market funds depending on your risk tolerance, investment goals and time horizon. Keep in mind that use of an asset allocation model does not guarantee favorable investment results. An asset allocation model program is not currently available in connection with the Contracts. However, we may offer an asset allocation model program in the future. Automatic Asset Rebalancing Program If you select the Automatic Asset Rebalancing program (AAR), you can instruct us to automatically rebalance your money in the subaccounts each quarter to reflect your most recent instructions for allocating premiums. Investment performance will likely cause any allocation percentages you selected to shift. With AAR, we will automatically make transfers among the subaccounts on the first day of the Policy quarter based on the anniversary date of the Policy to bring your Contract back in line with the percentages you most recently provided to us. For instance, assume you instructed us to put your initial premium into 5 subaccounts in equal proportions (20% in each) and you selected AAR on your application. Over the next few months, investment performance caused the percentage of your Contract Value in the 5 subaccounts to change so that the 5 subaccounts were 10%, 30%, 10%, 30% and 20% of your Contract Value. On the first day of the policy quarter based on the anniversary date of the Policy, we will transfer your money among the subaccounts so that 20% of your Contract Value is again in each of the 5 subaccounts. If you select an asset allocation model on your application and you select AAR, then on the first day of the policy quarter based on the anniversary date of the Policy, we will automatically transfer money among the subaccounts to match the percentages in the original asset allocation model you select. Unless you instruct us to update the asset allocation model, AAR will rebalance your money in the subaccounts to the original model that was in place on the Issue Date (or to the model in place on the date you most recently told us to update the model). Transfers under this program are not subject to the $100 minimum transfer limitation. There is no charge for using AAR and we do not charge a transfer fee for asset rebalancing. We do not include any money allocated to the Fixed Account in the rebalancing. We do not assess transfer fees on AAR transfers, nor do we count them toward the twelve free transfers permitted each Contract Year. You can start and stop AAR at any time, and you can change your instructions at any time by submitting a request to the Service Center. AAR is not available after the Annuity Start Date. Your AAR instructions are effective on the Business Day we receive them at the Service Center. The AAR program is not available if you elect to enroll in the Dollar Cost Averaging program discussed below. We may suspend or modify AAR at any time. Third Party Transfers If you authorize a third party to transact transfers on your behalf, we will honor their transfer instructions, so long as they comply with our administrative systems, rules and procedures, which we may modify or rescind at any time. We take no responsibility for any third party asset allocation program. Please note that any fees and charges assessed for third party asset allocation services are

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document separate and distinct from the Contract fees and charges set forth in this prospectus. We neither recommend nor discourage the use of asset allocation services.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Dollar Cost Averaging Program Under the Dollar Cost Averaging program, you may authorize us to transfer a fixed dollar amount at monthly intervals from the Fixed Account to one or more subaccounts. You may designate up to eight subaccounts to receive the transfers. The fixed dollar amount will purchase more Accumulation Units of a subaccount when their value is lower and fewer units when their value is higher. Over time, the cost per unit averages out to be less than if all purchases of units had been made at the highest value and greater than if all purchases had been made at the lowest value. The dollar cost averaging method of investment reduces the risk of making purchases only when the price of Accumulation Units is high. It does not assure a profit or protect against a loss in declining markets. Dollar cost averaging is only available during the Pay-in Period. You may cancel your participation in the program at any time. You may enroll in the Dollar Cost Averaging program at any time by submitting a request to the Service Center. We make transfers on the same day of every month as your Issue Date. Transfers under the Dollar Cost Averaging program are not included when we determine the number of free transfers permitted each year. We must receive the request form at least 5 Business Days before the transfer date, for your transfers to begin on that date. When you enroll in the Dollar Cost Averaging program, your total Contract Value in the Fixed Account must be at least equal to the amount you designate to be transferred on each transfer date. Transfers from the Fixed Account under this program must be at least $100. If on any transfer date the amount remaining in the Fixed Account is less than the amount designated to be transferred, the entire balance will be transferred out of the Fixed Account and applied pro-rata to the selected subaccounts, and the dollar cost averaging request will expire. We may suspend or modify this Dollar Cost Averaging program at any time. We do not assess transfer fees on dollar cost averaging transfers. The Dollar Cost Averaging program is not available if you elect to enroll in the Automatic Asset Rebalancing program discussed above. Telephone Transfers Your Contract will automatically receive telephone transfer privileges unless you provide other instructions. (In some states you may have to elect telephone transfers.) To make a telephone transfer, you must call the Service Center toll-free at 1-877-376-8008, open between 8:00 a.m. and 6:00 p.m. Eastern Time. Any telephone transfer requests directed to another number may not be considered received at our Service Center. Please note the following regarding telephone transfers: We are not liable for any loss, damage, cost or expense from complying with telephone instructions we reasonably believe to be authentic. You bear the risk of any such loss. We will employ reasonable procedures to confirm that telephone instructions are genuine. Such procedures may include requiring forms of personal identification prior to acting upon telephone instructions, providing written confirmation of transactions to you, and/or tape recording telephone instructions received from you. If we do not employ reasonable confirmation procedures, we may be liable for losses due to unauthorized or fraudulent instructions. We will price any complete telephone transfer request that we receive at the Service Center before the NYSE closes for regular trading (usually, 4:00 p.m. Eastern Time, 1:00 p.m. Pacific Time) using the accumulation unit value determined at the end of that regular trading session of the NYSE. We cannot guarantee that telephone transfer transactions will always be available. For example, our Service Center may be closed during severe weather emergencies or there may be interruptions in telephone service or problems with computer systems that are beyond our control. Outages or slowdowns may prevent or delay our receipt of your request. If the volume of calls is unusually high, we might not have someone immediately available to receive your order. Although we have taken precautions to help our systems handle heavy use, we cannot promise complete reliability under all circumstances. The corresponding portfolio of any subaccount determines its net asset value per each share once daily, as of the close of the regular business session of the NYSE (usually, 4:00 p.m. Eastern Time, 1:00 p.m. Pacific Time), which coincides with the end of each Valuation Period. Therefore, we will price any transfer request we receive after the close of the regular business session of the NYSE,

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document on any day the NYSE is open for regular trading, using the net asset value for each share of the applicable portfolio determined as of the close of the next regular business session of the NYSE.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents We reserve the right to modify, restrict, suspend or eliminate the transfer privileges (including the telephone transfer facility) at any time, for any class of Contracts, for any reason. Policy and Procedures Regarding Disruptive Trading and Market Timing Statement of Policy. This Contract is not designed for use by organizations or individuals engaged in market timing or for use by investors who make frequent transfers, programmed transfers, transfers into and then out of a subaccount in a short period of time, or transfers of large amounts at one time (Disruptive Trading). Market timing and other kinds of Disruptive Trading can increase your investment risks and have harmful effects for you, for other Contract Owners, for the underlying portfolios, and for other persons who have material rights under the Contracts, such as insureds and beneficiaries. These risks and harmful effects include: dilution of the interests of long-term investors in a subaccount if market timers manage to transfer into an underlying portfolio at prices that are below the true value or to transfer out of the underlying portfolio at prices that are above the true value of the underlying portfolios investments (some market timers attempt to do this through methods known as time-zone arbitrage and liquidity arbitrage); reduced investment performance due to adverse effects on portfolio management by: ¡ impeding a portfolio managers ability to sustain an investment objective; ¡ causing the underlying portfolio to maintain a higher level of cash than would otherwise be the case; ¡ causing an underlying portfolio to liquidate investments prematurely (or otherwise at an inopportune time) in order to pay withdrawals or transfers out of the underlying portfolio; and increased costs to you in the form of increased brokerage and administrative expenses. These costs are borne by all Contract Owners invested in those subaccounts, not just those making the transfers. Policy Against Disruptive Trading. We have adopted policies and procedures that are intended to detect and deter market timing and other forms of Disruptive Trading. We do not make special arrangements or grant exceptions or waivers to accommodate any persons or class of persons with regard to these policies and procedures. Do not invest with us if you intend to conduct market timing or potentially Disruptive Trading. For these purposes, we do not include transfers made pursuant to Dollar Cost Averaging or Automatic Asset Rebalancing. Detection. We monitor the transfer activities of Owners in order to detect market timing and other forms of Disruptive Trading activity. However, despite our monitoring we may not be able to detect or halt all Disruptive Trading activity. Our ability to detect Disruptive Trading may be limited by operational or technological systems, as well as by our ability to predict strategies employed by market timers to avoid detection. As a result, despite our efforts, there is no assurance that we will be able to identify and curtail all Disruptive Trading by such Contract Owners or intermediaries acting on their behalf. In addition, because other insurance companies (and retirement plans) with different market timing policies and procedures may invest in the underlying portfolios, we cannot guarantee that all harmful trading will be detected or that an underlying portfolio will not suffer harm from Disruptive Trading in the subaccounts of variable products issued by these other insurance companies (or retirement plans) that invest in the underlying portfolios. As a result, to the extent we are not able to detect Disruptive Trading activity, or other insurance companies (or retirement plans) fail to detect such activity, it is possible that a market timer may be able to engage in Disruptive Trading transactions that may interfere with underlying portfolio management and cause you to experience detrimental effects such as increased costs, lower performance and a dilution of your interest in an underlying portfolio. Deterrence. We impose limits on transfer activity within the Contract in order to deter Disruptive Trading. We will accept the following transfers only if the order is sent to us with an original signature and by first class U.S.Mail: transfers in excess of $250,000 per Contract, per day; and transfers into or out of the following subaccounts in excess of $50,000 per Contract, per day: ¡ Deutsche Global Small Cap VIP;

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents If you send a transfer request in excess of these restrictions by any other method (such as fax, phone, or overnight mail), we will not honor your request. If we identify suspicious transfer activity, we will advise you in writing that we are monitoring your transfer activity and that we will impose restrictions if we identify a pattern of Disruptive Trading activity. If we identify such a pattern as a result of continued monitoring, we will notify you in writing that all future transfers must be requested through first class U.S. Mail. This means that we would accept only written transfer requests with an original signature transmitted to us only by first class U.S. mail. We may also restrict the transfer privileges of others acting on your behalf, including your registered representative or an asset allocation or investment advisory service. To further deter any market timing and Disruptive Trading activities, we may at any time and without prior notice: terminate all telephone, website, email or fax transfer privileges; limit the total number of transfers; place further limits on the dollar amount that may be transferred; require a minimum period of time between transfers; or refuse transfer requests from intermediaries acting on behalf of you. Our ability to impose these restrictions in order to discourage market timing and other forms of Disruptive Trading may be limited by the provisions of your Contract. As a result, to the extent the provisions of your Contract limit our actions, some Contract Owners may be able to market time through the Contract, while others would bear the harm associated with the timing. We reserve the right to reject any Premium Payment or transfer request from any person without prior notice, if, in our judgment, (1) the payment or transfer, or series of transfers, would have a negative impact on an underlying portfolios operations, or (2) if an underlying portfolio would reject or has rejected our purchase order, or has instructed us not to allow that purchase or transfer, or (3) you have a history of large or frequent transfers. We may impose other restrictions on transfers, or even prohibit transfers for any Owner who, in our view, has abused, or appears likely to abuse, the transfer privilege. We also reserve the right to reverse a potentially harmful transfer if an underlying portfolio refuses or reverses our order; in such instances some Contract Owners may be treated differently than others. For all of these purposes, we may aggregate two or more variable insurance products that we believe are connected. In addition to our internal policies and procedures, we will administer your Contract to comply with any applicable state, federal, and other regulatory requirements concerning transfers. We reserve the right to implement, administer, and charge you for any fee or restriction, including redemption fees, imposed by any underlying portfolio. To the extent permitted by law, we also reserve the right to defer the transfer privilege at any time that we are unable to purchase or redeem shares of any of the underlying portfolios. Under our current policies and procedures, we do not: impose redemption fees on transfers; expressly limit the number, size or frequency of transfers in a given period (except for certain subaccounts listed above where transfers that exceed a certain size are prohibited); or allow a certain number of transfers in a given period. Redemption fees, other transfer limits, and other procedures or restrictions may be more or less successful than ours in deterring market timing or other forms of Disruptive Trading and in preventing or limiting harm from such trading. We may revise our policies and procedures in our sole discretion at any time and without prior notice, as we deem necessary or appropriate (1) to better detect and deter market timing or other Disruptive Trading if we discover that our current procedures do not adequately curtail such activity, (2) to comply with state or federal regulatory requirements, or (3) to impose additional or alternative restrictions on Owners engaging in frequent transfer activity among the underlying portfolios under the Contract. The actions we take will be based on policies and procedures that we apply uniformly to all Contract Owners. Underlying Portfolio Frequent Trading Policies. The underlying portfolios may have adopted their own policies and procedures with respect to frequent purchases and redemptions of their respective shares. The prospectuses for the underlying portfolios describe any such policies and procedures. The frequent trading policies and procedures of one underlying portfolio may be different,

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document and more or less restrictive, than the frequent trading policies and procedures of another underlying portfolio and the policies and procedures we have adopted for the Contract to discourage market timing and other programmed, large, frequent, or short-term transfers.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents You should be aware that, as required by SEC regulation, we have entered into a written agreement with each underlying fund or principal underwriter that obligates us to provide the fund, upon written request, with information about you and your trading activities in the funds portfolios. In addition, we are obligated to execute instructions from the funds that may require us to restrict or prohibit your investment in a specific portfolio if the fund identifies you as violating the frequent trading policies that the fund has established for that portfolio. If we receive a Premium Payment from you with instructions to allocate it into a fund that has directed us to restrict or prohibit your trades into the fund, then we will request new allocation instructions from you. If you request a transfer into a fund that has directed us to restrict or prohibit your trades, then we will not effect the transfer. Omnibus Order. Contract Owners and other persons with material rights under the Contract also should be aware that the purchase and redemption orders received by the underlying portfolios generally are omnibus orders from intermediaries such as retirement plans and separate accounts funding variable insurance products. The omnibus orders reflect the aggregation and netting of multiple orders from individual retirement plan participants and individual Owners of variable insurance products. The omnibus nature of these orders may limit the underlying portfolios ability to apply their respective frequent trading policies and procedures. We cannot guarantee that the underlying portfolios will not be harmed by transfer activity relating to the retirement plans or other insurance companies that may invest in the underlying portfolios. These other insurance companies are responsible for their own policies and procedures regarding frequent transfer activity. If their policies and procedures fail to successfully discourage harmful transfer activity, it will affect other Owners of underlying portfolio shares, as well as the Owners of all of the variable annuity or life insurance policies, including ours, whose variable investment options correspond to the affected underlying portfolios. In addition, if an underlying portfolio believes that an omnibus order we submit may reflect one or more transfer requests from Owners engaged in market timing and other programmed, large, frequent, or short-term transfers, the underlying portfolio may reject the entire omnibus order and thereby delay or prevent us from implementing your request. Surrender and Partial Withdrawals

Surrender At any time before the Annuity Start Date, you may make a written request to surrender your Contract for its Cash Value as calculated at the end of the Business Day when we receive your request at the Service Center, unless you specify a later Business Day in your request. You should send your written request to the Service Center. The Cash Value is the amount we pay when you surrender your Contract. The Cash Value on any Business Day equals: the Contract Value as of such date; minus any surrender charge as of such date; minus any premium taxes not previously deducted; minus the Records Maintenance Charge unless waived. Surrender Conditions: You must make your surrender request in writing. Your written surrender request must contain your signature. You should send your written request to the Service Center. A surrender is effective as of the Business Day when we receive your written request, unless you request otherwise. You will incur a surrender charge if you surrender the Contract during the first 7 Contract years after making a Premium Payment. See the Fees and Charges section of this prospectus for more information. Once you surrender your Contract, all coverage and other benefits under it cease and cannot be reinstated. We will pay you the Cash Value in a lump sum within seven calendar days unless you request payment under an annuity option. We will price complete surrender requests that we receive from you at our Service Center before the NYSE closes for regular trading (usually 4:00 p.m. Eastern Time, 1:00 p.m. Pacific Time) using the Accumulation Unit value determined at the close of that regular trading session of the NYSE. If we receive your complete surrender request after the close of regular trading on the NYSE, we

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document will price your surrender request using the Accumulation Unit value determined at the close of the next regular trading session of the NYSE.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Surrendering the Contract may have adverse tax consequences, including a penalty tax. See Federal Tax Considerations. Partial Withdrawals Before the Annuity Start Date, you may request a withdrawal of part of your Cash Value subject to certain conditions. Partial withdrawals may have adverse tax consequences, including a penalty tax. See Federal Tax Considerations. Partial Withdrawal Conditions: You must make your partial withdrawal request in writing. Your written partial withdrawal request must contain your signature. You should send your written request to the Service Center. You may make only one partial withdrawal each calendar quarter. You must request at least $100. You may not make a partial withdrawal if the withdrawal plus the surrender charge would cause the Contract Value to fall below $500. You may incur surrender charges. You can specify the subaccount(s) and Fixed Account from which to make the partial withdrawal, otherwise we will deduct the amount from the subaccounts and the Fixed Account on a pro-rata basis (that is, according to the percentage of Contract Value contained in each subaccount and the Fixed Account). We will price complete partial withdrawal requests that we receive from you at our Service Center before the NYSE closes for regular trading (usually 4:00 p.m. Eastern Time, 1:00 p.m. Pacific Time) using the Accumulation Unit value determined at the close of that regular trading session of the NYSE. If we receive your complete partial withdrawal request after the close of regular trading on the NYSE, we will price your surrender request using the Accumulation Unit value determined at the close of the next regular trading session of the NYSE. We will reduce your Contract Value by the amount of the withdrawal you requested plus any surrender charge. We generally will pay a completed partial withdrawal request within seven calendar days after the Business Day when we receive the request. Remember, any partial withdrawal you take will reduce your Contract Value, and will proportionally reduce the minimum death benefit by the amount of the withdrawals plus any charges. See Death Benefits. If you elected the Guaranteed Minimum Death Benefit, a partial withdrawal will proportionally reduce the Greatest Anniversary Value and the amount of premiums (plus interest) being accumulated at 4% annually. Likewise, if you elected the Guaranteed Retirement Income Benefit, a partial withdrawal will proportionally reduce the Income Base. The impact of a proportional reduction on these benefits depends, in part, upon the relative amount of your Contract Value at the time of the withdrawal. Under proportional reductions, if the amount of the death benefit or Income Base is greater than the Contract Value at the time of the partial withdrawal, then the reduction in the death benefit or Income Base will be greater than the dollar amount of the withdrawal (including any charges). For this reason, if a death benefit is paid, or the Income Base is calculated, after you have taken a partial withdrawal, the possibility exists that the total amount of the death benefit or Income Base will be less than the total Premium Payments you have paid. See Death Benefits and Guaranteed Retirement Income Benefit. Income taxes, tax penalties and certain restrictions may apply to any withdrawal you make. See Surrender Charges for an explanation of the surrender charges that may apply. Systematic Withdrawal Plan After your first Contract Year, you can elect to receive regular payments from your Contract Value during the Pay-in Period. You may terminate the systematic withdrawal plan at any time. Systematic Withdrawal Plan Conditions: You must complete an enrollment form and send it to the Service Center. You instruct us to withdraw selected amounts from the Fixed Account or any of the subaccounts. We will make these withdrawals on a monthly basis.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document You must withdraw at least $100. You must have a minimum balance at least equal to the amount you want to withdraw. We will deduct a surrender charge from any amount you withdraw in excess of your Free Withdrawal Amount. You may not take a systematic withdrawal if the withdrawal plus the surrender charge would cause the Contract Value to fall below $500.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Income taxes and tax penalties may apply to the amount withdrawn. We may suspend, modify or terminate the systematic withdrawal plan at any time. The Payout Period

The Annuity Start Date The Annuity Start Date is the day that the Payout Period begins under the annuity option you have selected. If you own a Contract that is not a Qualified Contract, you must select the Annuity Start Date on which you will begin to receive annuity payments. The Annuity Start Date can be no later than the Final Annuity Date (the Contract Anniversary when the oldest Annuitant is age 95). In the case of an IRA that satisfies Tax Code section 408, the Annuity Start Date must be no later than April 1 of the calendar 1 year following the year in which you reach age 70 /2 and the payment must be made in a specified form or manner. Roth IRAs under section 408A of the Tax Code do not require distributions at any time prior to your death; the Annuity Start Date for Roth IRAs can be no later than the Final Annuity Date. Annuity Options You must choose an annuity option on or before the Annuity Start Date. The annuity option you select will affect the dollar amount of each annuity payment you receive. You may select or change your annuity option on or before the Annuity Start Date while the Annuitant is living by sending a written request signed by you and/or your beneficiary, as appropriate, to our Home Office. You may choose one of the annuity options described below or any other annuity option being offered by us as of the Annuity Start Date. The annuity options we currently offer provide for fixed annuity payments. Once you have selected an annuity option, you may not change that election with respect to any Annuitant if annuity payments have begun. After the Annuity Start Date, the Contract no longer participates in the Variable Account. You may elect to receive annuity payments on a monthly, quarterly, semi-annual or annual basis. If you do not specify the frequency of payment, we will pay you monthly. The first payment under any option will be made on the day of the month you request (subject to our agreement) and will begin in the month immediately following the Annuity Start Date. We will make subsequent payments on the same day of each subsequent period in accordance with the payment interval and annuity option you select. If you do not select an annuity option by the Final Annuity Date, we will apply the Contract Value under the Second Option, Life Income with a 10-year guarantee period, as described below. A beneficiary may have the death benefit paid as an annuity under one of the annuity options. Determining the Amount of Your Annuity Payment On the Annuity Start Date, we will use the Cash Value to calculate your annuity payments under the annuity option you select. Cash Value is your Contract Value minus any applicable surrender charges, records maintenance fee, and premium tax. For Qualified Contracts, distributions must satisfy certain requirements specified in the Federal Tax Code. Fixed Annuity Payments Fixed annuity payments are periodic payments that we make to the Annuitant. The amount of the fixed annuity payment is fixed and guaranteed by us. The amount of each fixed annuity payment depends on: the form and duration of the annuity option you choose; the age of the Annuitant; the sex of the Annuitant (if applicable); the amount of your Cash Value on the Annuity Start Date; and the applicable guaranteed annuity tables in the Contract. Guaranteed Annuity Tables

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document The guaranteed annuity tables in the Contract are based on a minimum guaranteed interest rate of 2.5%. We may, in our sole discretion, make annuity payments in an amount based on a higher interest rate. The guaranteed annuity tables in your Contract show the minimum dollar amount of the first monthly payment for each $1,000 applied under the first, second and third annuity options. Under the first or second options, the amount of each payment will depend upon the adjusted age and sex of the Annuitant at the time we are due to pay the first payment. Under the third option, the amount of each payment will depend upon the sex of both Annuitants and their adjusted ages at the time we are due to pay the first payment.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents The adjusted age of the Annuitant is determined by calculating the age at the nearest birthday of the Annuitant on the Annuity Start Date and subtracting a number that depends on the year in which the Annuity Start Date belongs: Annuity Start Date Adjusted Age is Age Minus Before 2001 0 Years 2001 to 2010 1 Year 2011 to 2020 2 Years 2021 to 2030 3 Years 2031 to 2040 4 Years After 2040 5 Years Description of Annuity Options First Option Life Income.* We will make payments for the Annuitants lifetime. When the Annuitant dies, we will stop making monthly payments with the last payment due prior to the Annuitants death. Second Option Life Income with a Guarantee Period. We will make payments for the Annuitants lifetime, with the guarantee that we will make payments for at least 10 or 20 years. You select either the 10 or 20 year guarantee period. On the death of the Annuitant on or after the Annuity Start Date, we will pay any remaining guaranteed payments to the beneficiary. For Qualified Contracts, the period selected cannot be longer than the Owners life expectancy, in order to satisfy minimum required distribution rules. Third Option Joint and Survivor Life Annuity.* Under this option, we will make annuity payments so long as two Annuitants are alive. After the death of one of the Annuitants, we will continue to make payments for the lifetime of the surviving Annuitant, although the amount of the payment may change. We will stop making monthly payments with the last payment due before the last surviving Annuitants death. The amount of each payment will be determined from the tables in the Contract that apply to the particular option using the Annuitants age (and if applicable, sex or adjusted age). Other options may be available upon request.

*It is possible under this option to receive only one annuity payment if the Annuitant dies (or Annuitants die) before the due date of the second payment or to receive only two annuity payments if the Annuitant dies (or Annuitants die) before the due date of the third payment, and so on. Guaranteed Retirement Income Benefit

As of June 18, 2003, we no longer offer the Guaranteed Retirement Income Benefit rider. If you elected the Guaranteed Retirement Income Benefit rider and your initial Contract application was signed and dated before June 18, 2003, this rider remains in force and our obligations and duties to you under this rider will not change. Our obligations and duties to Owners who purchased the rider are described below. Here are some terms you will need to know before reading this section: the guaranteed annuity rates are the rates contained in your Contract under Guaranteed Annuity Tables. income base equals the greater of: (i) premiums you paid accumulated daily with interest compounded at 5.00% per year through the earlier of the Annuity Start Date and the Contract Anniversary on or next following the oldest joint Annuitants 80th birthday, with a proportional reduction for withdrawals; and (ii) the Greatest Anniversary Value for the Contract anniversaries through the earlier of the Annuity Start Date and the Contract Anniversary on or next following the oldest joint Annuitants 80th birthday, with a proportional reduction for withdrawals.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document In determining the income base when the oldest joint Annuitant is over 80 on the Annuity Start Date, the income base on the Contract Anniversary coincident with or next following the Annuitants 80th birthday is increased by any premiums received and proportionately reduced by any withdrawals since that anniversary.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents The proportional reductions for withdrawals are determined independently for (i) and (ii) above. The proportional reduction for each withdrawal (for purposes of the Guaranteed Retirement Income Benefit) equals: the income base under the item being considered (either (i) or (ii) above) immediately prior to the withdrawal; multiplied by the ratio of the amount withdrawn (including charges) to the Contract Value immediately prior to the withdrawal. * * * The Guaranteed Retirement Income Benefit provides a minimum fixed annuity guaranteed lifetime income to the Annuitant once the Contract has been in force for ten Contract Years. You may discontinue the Guaranteed Retirement Income Benefit at any time by sending notice to the Service Center. Once you discontinue the Guaranteed Retirement Income Benefit, you may not select it again. If you selected the Guaranteed Retirement Income Benefit, we will deduct an additional daily charge on each Business Day from the subaccounts at an annual rate of 0.25% of the average daily net assets you have invested in the subaccounts. For more information, see the Fees and Charges section of this prospectus. Conditions for receiving the Guaranteed Retirement Income Benefit: You must choose an annuity option that provides payments for the lifetime of one or more Annuitants with payments guaranteed for a period not to exceed 10 years; For Qualified Contracts, the period selected cannot be longer than the Owners life expectancy, in order to satisfy minimum required distribution rules. You must select an Annuity Start Date that is on or after the 10th Contract Anniversary; You must select an Annuity Start Date that occurs within 30 days following a Contract Anniversary; and Your Annuity Start Date must be before the Annuitants 91st birthday and after the Annuitants 60th birthday. If the Annuitant is younger than 44 on the Issue Date, the Annuity Start Date must be after the 15th Contract Anniversary. If you do not meet these conditions, you lose the benefit of the Rider. The amount of minimum income payments we will pay under the Guaranteed Retirement Income Benefit is determined by applying the income base (less applicable taxes) to the guaranteed annuity rates in your Contract for the annuity option you select. On the Annuity Start Date, the income payments we will pay under the Contract will equal the greater of: the dollar amount determined by applying the income base (under the Guaranteed Retirement Income Benefit) to the guaranteed annuity rates in the Contract; and the dollar amount determined by applying the Contracts Cash Value to the income benefits, annuity options and current annuity tables as described in your Contract. We will pay the Guaranteed Retirement Income Benefit for the life of a single Annuitant, or the lifetimes of two Annuitants. If we pay the Guaranteed Retirement Income Benefit for the life of two Annuitants, then we will use the age of the oldest joint Annuitant to determine the income base. The Guaranteed Retirement Income Benefit guarantees a minimum income that is based on conservative actuarial factors. The income guaranteed under the Guaranteed Retirement Income Benefit by applying the income base to the Contracts guaranteed annuity tables may, under some circumstances, be less than the income that would be provided by applying the Contracts Cash Value to current annuity factors (i.e., the income you would receive if you did not purchase the Guaranteed Retirement Income Benefit). Depending on market conditions and the build-up in your Contracts Cash Value, you may decide not to annuitize under the rider. When you bought the Guaranteed Retirement Income Benefit, you took the risk that you may pay for the riders insurance but never receive the benefit. Death Benefit Before the Annuity Start Date

Only one death benefit will be payable under this Contract. Upon payment of the death benefit proceeds, the Contract will terminate.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents We will pay the death benefit proceeds to the beneficiary if any of the following occurs during the Pay-in Period: the Owner or any joint Owner dies, or the last surviving Annuitant dies, and we receive satisfactory proof of death of the deceased. If the beneficiary dies before the Owner or Annuitant and there is no contingent beneficiary, we will pay the death benefit to the Owner or the Owners estate. If any Owner is a non-natural person, then the death of any Annuitant will be treated as the death of an Owner. Take care when naming Owners, Annuitants and beneficiaries. Your choices may impact the amount of the death benefit payable under the Contract. Standard Death Benefit If you have not selected the Guaranteed Minimum Death Benefit on your application, and if the last surviving Annuitant (or an Owner who is an Annuitant) dies before his or her 80th birthday, the death benefit equals the greater of: The Standard Death Benefit equals: the Contract Value on the later of the date that we receive due proof of death and the date when we receive the beneficiarys instructions on payment method at the Service Center; or the minimum death benefit, which equals the sum of all premiums, minus proportional reductions for withdrawals. The proportional reduction in the minimum death benefit equals: the minimum death benefit immediately prior to the withdrawal; multiplied by the ratio of the amount you withdraw (including any charges) to the Contract Value immediately before the withdrawal. In all other cases (including the death of an Owner who is not an Annuitant), the death benefit equals the Contract Value determined on the later of the date that we receive due proof of death and the date when we receive the beneficiarys instructions on payment method. Such other cases include the death of an Annuitant who has attained his or her 80th birthday. In determining the standard death benefit, we will also subtract any applicable premium and withholding taxes not previously deducted. Guaranteed Minimum Death Benefit On your application, you may select the optional Guaranteed Minimum Death Benefit rider. If you select the Guaranteed Minimum Death Benefit rider, the death benefit guarantee provided by this rider will only apply if the last surviving Annuitant dies before the Annuity Start Date and before any Owner dies. In all other cases, such as the death of an Owner who is not the last surviving Annuitant, the death benefit will be limited to the Standard Death Benefit described above and you will lose the benefits of the rider. If you select the Guaranteed Minimum Death Benefit rider, we will deduct a substantial additional daily charge from your Contract Value. Ask your agent for an explanation of the benefits and limitations of this feature, particularly if you name joint Owners and/or joint Annuitants. The Guaranteed Minimum Death Benefit equals the greatest of: 1. the standard death benefit as described above; 2. premiums you paid accumulated daily with interest compounded at a rate of 4% per year through the earlier of (i) the date of death, or (ii) the Contract Anniversary on or next following the last surviving Annuitants 80th birthday, minus proportional reductions for withdrawals; or 3. the Greatest Anniversary Value on any Contract Anniversary through the earlier of the date of death or the Contract Anniversary on or next following the last surviving Annuitants 80th birthday, minus proportional reductions for withdrawals.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents The Greatest Anniversary Value is calculated as follows: an anniversary value is defined for each eligible Contract Anniversary as the Contract Value on that anniversary, increased by premiums accepted since that anniversary and proportionately reduced for withdrawals since that anniversary. The largest such anniversary value is the Greatest Anniversary Value. Guaranteed Minimum Death Benefit Provisions: If the last surviving Annuitant dies after the Contract Anniversary coincident with or next following that Annuitants 80th birthday and before the Annuity Start Date, the amounts calculated under 2 and 3 above will be increased by premiums received and proportionately reduced for withdrawals since that anniversary. If the last surviving Annuitant was older than 80 on the Issue Date, then no death benefit will be payable under 2 or 3 above. The proportional reductions for withdrawals are determined independently for 2 and 3 above. The proportional reduction for each withdrawal is equal to the product of: ? the death benefit available under the item being considered (either 2 or 3) immediately prior to the withdrawal, and ? the ratio of the amount withdrawn (including any charges) to the Contract Value immediately before the withdrawal. We will deduct an additional charge equal, on an annual basis, to 0.25% of the average net assets you have invested in the subaccounts. You must select the Guaranteed Minimum Death Benefit on your Contract application. This death benefit is only payable during the Pay-in Period and is not available after the Annuity Start Date. The Guaranteed Minimum Death Benefit will end when the Contract ends or you send a signed request to terminate it to the Service Center. If you terminate the rider, we will no longer deduct the 0.25% additional rider charge from the subaccounts. In determining the Guaranteed Minimum Death Benefit, we will also subtract any applicable premium and withholding taxes not previously deducted. The Guaranteed Minimum Death Benefit may not be available in all states, and it may vary by state. Distribution of Death Benefit Proceeds If a death benefit is payable before the Annuity Start Date, we will pay the death benefit in a lump sum, unless we consent to another arrangement within 90 days of receiving due proof of death. If all or a part of the death benefit proceeds are paid in one lump sum and the proceeds are at least $10,000, we will place the lump-sum payment into an interest-bearing special account opened in the beneficiarys name, unless the Beneficiary elects to receive the lump sum by check or payment by check is required by applicable law. We will provide the beneficiary with a checkbook to access these funds from the special account within seven calendar days of our receipt of due proof of death and payment instructions at the Service Center. The beneficiary can withdraw all or a portion of the death benefit proceeds at any time, and will receive interest on the proceeds remaining in the account. The special account is part of our General Account, is not FDIC insured, and is subject to the claims of our creditors. We may receive a benefit from the amounts held in the account. In all events, death benefit distributions will be made from a non-qualified Contract in accordance with Section 72(s) of the Tax Code. If any Owner dies before the Annuity Start Date, the death benefit must be distributed to the beneficiaries within five years after the date of death or distributed over the life (or period not exceeding the life expectancy) of the beneficiary, provided that such distributions begin within one year of the Owners death. A new settlement agreement will be drawn up and the original Contract will terminate. The payments under this agreement will be fixed and guaranteed. If you have named two or more beneficiaries, then the provisions of this section shall apply independently to each beneficiary. If the sole beneficiary is the surviving spouse of the deceased Owner, the spouse may elect to continue the Contract (in lieu of receiving the death benefit) with the surviving spouse as the sole Owner but not the Annuitant. On the death of the surviving spouse, we will pay a death benefit. If the Contract is continued with the Guaranteed Minimum Death Benefit rider in effect, the spouse should consider terminating the rider, as the Guaranteed Minimum Death Benefit cannot be paid on the death of the surviving spouse.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents If an Owner is a non-natural person, then each Annuitant will be treated as an Owner for purposes of distributing the death benefit, and any death of an Annuitant will be treated as the death of the Owner for purposes of these requirements. Moreover, if an Annuitant is also an Owner, then the death of such Annuitant will also be treated as the death of an Owner. Multiple Beneficiaries. If a death benefit is owed to more than one primary beneficiary or contingent beneficiary, we may delay payment of the death benefit proceeds until we have received the necessary instructions from each primary or contingent beneficiary. Each primary or contingent beneficiary will bear the investment risk (i.e., receive any gains or bear any losses) on investments held in the subaccounts until the payment of the death benefit. Death Benefit on or After the Annuity Start Date

If an Annuitant dies on or after the Annuity Start Date, we will pay any remaining guaranteed payments to the beneficiary as provided in the annuity option selected. If an Owner who is not the Annuitant dies while an Annuitant is still living, we will continue to pay the income payments for the Annuitants lifetime in the same manner as before such Owners death. Investment Performance of the Subaccounts

The Company periodically advertises performance of the subaccounts and portfolios. We may disclose at least four different kinds of performance. First, we may disclose standard total return figures for the subaccounts that reflect the deduction of all charges under the Contract, including the mortality and expense charge, any charge for optional benefits, the annual records maintenance charge and the surrender charge. These figures are based on the actual historical performance of the subaccounts since their inception. Second, we may disclose total return figures on a non-standard basis. This means that the data may be presented for different time periods and different dollar amounts. The data will not be reduced by the surrender charge or by charges for optional benefits currently assessed under the Contract. We will only disclose non-standard performance data if it is accompanied by standard total return data. Third, we may present historic performance data for the portfolios since their inception reduced by all fees and charges under the Contract, although we may not deduct the surrender charge or the charges for optional benefits in some cases. Such adjusted historic performance includes data that precedes the inception dates of the subaccounts, but is designed to show the performance that would have resulted if the Contract had been available during that time. Fourth, we may include in our advertising and sales materials, tax deferred compounding charts and other hypothetical illustrations, which may include comparisons of currently taxable and tax-deferred investment programs, based on selected tax brackets. We may provide illustrations of hypothetical Contract expenses and values during the accumulation period, based on hypothetical rates of return that are not guaranteed. For a sample of the performance of the subaccounts and portfolios that we may advertise, see the SAI. Federal Tax Considerations

The following discussion is general in nature and is not intended as tax advice. Each person concerned should consult a competent tax adviser. No attempt is made to consider any applicable state tax or other tax laws. If a non-qualified annuity contract satisfies the requirements of the Tax Code, no taxes are generally imposed on increases in the value of a contract until distribution occurs, either in the form of a payment in a single lump sum or as annuity payments under the annuity payout option elected. Diversification Requirements. One of the requirements is that the investments of the Variable Account be adequately diversified in order to treat the Contract as an annuity contract for Federal income tax purposes. We believe that the Variable Account will satisfy these diversification requirements. We reserve the right to modify the Variable Account to bring it into conformity with applicable standards should such modification be necessary to assure the Contract is treated as an annuity contract for tax purposes.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Owner Control. In some circumstances, Owners of variable annuity contracts who retain excessive control over the investment of the underlying portfolio assets of the Variable Account may be treated as the Owners of those assets and may be subject to current tax on income produced by those assets. Although published guidance in this area does not address certain aspects of the Contracts, we believe that the Owner of a Contract should not be treated as the Owner of the underlying assets. We reserve the right to modify the Contract to bring it into conformity with applicable standards should such modification be necessary to prevent Owners of the Contracts from being treated as the Owners of the underlying portfolio assets of the Variable Account. Death Distribution Requirements. In order to be treated as an annuity Contract for Federal income tax purposes, any non- qualified Contract issued after January 18, 1985 must provide that: (a) if an Owner dies on or after the annuity start date but prior to the time the entire interest in the Contract has been distributed, the remaining portion of such interest will be distributed at least as rapidly as under the method of distribution being used as of the date of that Owners death; and (b) if an Owner dies prior to the annuity start date, the entire interest in the contract will be distributed within five years after the date of the Owners death. The requirement in (b) above will be considered satisfied with respect to any portion of the Owners interest which is payable to or for the benefit of a designated beneficiary who is a natural person, if distributed over the life of that beneficiary or over a period not extending beyond the life expectancy of that beneficiary and such distributions begin within one year of that Owners death. The Owners designated beneficiary is the person designated by the Owner as a beneficiary and to whom ownership passes upon the Owners death. If the Owners designated beneficiary is the surviving spouse of the Owner, however, the Contract may be continued with the surviving spouse as the new Owner. Non-qualified Contracts issued after January 18, 1995 contain provisions which are intended to comply with these requirements, although no regulations interpreting these requirements have yet been issued. We intend to review such provisions and modify them if necessary to assure that they comply with these requirements when clarified by regulation or otherwise. The U.S. Department of the Treasury and the Internal Revenue Service, following the U.S. Supreme Courts decision in United States v. Windsor, jointly announced the issuance of Revenue Ruling 2013-17, providing guidance on the federal taxation of same-sex couples. Windsor invalidated the limitation of marriage to opposite-sex couples in the federal Defense of Marriage Act (DOMA). Rev. Rul. 2013-17 holds that for all federal tax purposes, including income, gift and estate tax, the IRS will recognize same-sex marriages that are legally valid in the state where the couple married, regardless of whether the state in which the couple resides would recognize the marriage. In the 2015 case, Obergefell v. Hodges, the U.S. Supreme Court required all states to issue marriage licenses to same-sex couples and to recognize same-sex marriages validly performed in other jurisdictions. DOMA still affects the federal tax status of same-sex civil unions and domestic partnerships. For Federal tax purposes, the term marriage does not include registered domestic partnerships, civil unions, or other similar formal relationships recognized under state law that are not denominated as a marriage under that states law. Thus, domestic partners and individuals in civil unions are not treated as Spouses under this Contract. You are strongly encouraged to consult with a qualified financial adviser and/or tax adviser for additional information on your states law regarding civil unions and same-sex marriages. We believe that our Contracts will qualify as annuity contracts for Federal income tax purposes and the following discussion assumes that they will so qualify. Further information on the tax status of the Contract can be found in the SAI under the heading Tax Status of the Contracts. You can obtain the SAI (at no cost) by writing to us at the address shown on the back cover or by calling 1-877-376-8008. When you invest in an annuity contract, you usually do not pay taxes on your investment gains until you withdraw the money generally for retirement purposes. In this way, annuity contracts have been recognized by the tax authorities as a legitimate means of deferring tax on investment income. If you invest in a variable annuity as part of an IRA, Roth IRA, SIMPLE IRA or SEP IRA program, your Contract is called a Qualified Contract. If your annuity is independent of any formal retirement or pension plan, it is called a Non-Qualified Contract.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document We believe that if you are a natural person you will not be taxed on increases in the Contract Value of your Contract until a distribution occurs or until annuity payments begin. (The agreement to assign or pledge any portion of a Contracts accumulation value generally will be treated as a distribution.) When annuity payments begin on a

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Non-Qualified Contract, you will be taxed only on the portion of each annuity payment that represents investment gains you have earned and not on the payments you made to purchase the Contract. Generally, withdrawals from your annuity should only be made 1 once the Annuitant reaches age 59 /2, dies or is disabled, otherwise a tax penalty of ten percent of the amount treated as income could be applied against any amounts included in income, in addition to the tax otherwise imposed on such amount. Taxation of Non-Qualified Contracts Non-Natural Person. If a non-natural person (such as a corporation) owns a non-qualified annuity contract, the Owner generally must include in income any increase in the excess of the accumulation value over the investment in the contract (generally, the premiums or other consideration paid for the contract) during the taxable year. There are some exceptions to this rule and a prospective Owner that is not a natural person should discuss these with a tax adviser. The following discussion generally applies to Contracts owned by natural persons. Withdrawals. When a withdrawal from a Non-Qualified Contract occurs, the amount received will be treated as ordinary income subject to tax up to an amount equal to the excess (if any) of the accumulation value immediately before the distribution over the Owners investment in the contract (generally, the premiums or other consideration paid for the Contract, reduced by any amount previously distributed from the Contract that was not subject to tax) at that time. In the case of a surrender under a Non-Qualified Contract, the amount received generally will be taxable only to the extent it exceeds the Owners investment in the Contract. Penalty Tax on Certain Withdrawals. In the case of a distribution from a Contract, there may be imposed a Federal tax penalty equal to ten percent of the amount treated as income. In general, however, there is no penalty on distributions:

made on or after the taxpayer reaches age 59 1/2; made on or after the death of an Owner; attributable to the taxpayers becoming disabled; or made as part of a series of substantially equal periodic payments for the life (or life expectancy) of the taxpayer. Other exceptions may apply under certain circumstances and special rules may apply in connection with the exceptions enumerated above. Additional exceptions apply to distributions from a Qualified Contract. You should consult a tax adviser with regard to exceptions from the penalty tax. Annuity Payments. Although tax consequences may vary depending on the annuity option elected under an annuity contract, a portion of each annuity payment is generally not taxed and the remainder is taxed as ordinary income. The non-taxable portion of an annuity payment is generally determined in a manner that is designed to allow you to recover your investment in the contract ratably on a tax-free basis over the expected stream of annuity payments, as determined when annuity payments start. Once your investment in the contract has been fully recovered, however, the full amount of each annuity payment is subject to tax as ordinary income. Partial Annuitization. If part of an annuity Policys value is applied to an annuity option that provides payments for one or more lives and for a period of at least ten years, those payments may be taxed as annuity payments instead of withdrawals. None of the payment options under the Policy is intended to qualify for this partial annuitization treatment and, if you apply only part of the value of the Policy to a payment option, we will treat those payments as withdrawals for tax purposes. Taxation of Death Benefit Proceeds. Amounts may be distributed from a Contract because of your death or the death of the Annuitant. Generally, such amounts are includible in the income of the recipient as follows: (i) if distributed in a lump sum, they are taxed in the same manner as a surrender of the Contract, or (ii) if distributed under an annuity option, they are taxed in the same way as annuity payments. Tax-Free Exchanges. Section 1035 of the Code provides that no gain or loss shall be recognized on the exchange of one annuity contract for another. Generally, an annuity contract issued in an exchange for another annuity contract is treated as new for purposes of the penalty and distribution at death rules. If the initial Contribution is made as a result of an exchange or surrender of another annuity contract, we may require that you provide information relating to the federal income tax status of the previous annuity contract to us.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Revenue Procedure 2011-38 significantly eases the restrictions on partial transfers previously adopted by the IRS. Under Rev. Proc. 2011-38, a partial exchange will be treated as tax-free under Section 1035 of the Code if there are no distributions, from either annuity, within 180 days of the partial 1035 exchange and annuity payments that satisfy the partial annuitization rule of Section 72(a)(2) of the Code will not be treated as a distribution from either the old or new contract. Please discuss any tax consequences concerning any contemplated transaction with a competent tax adviser. Transfers or Assignments of a Contract. A transfer or assignment of ownership of a Contract, the designation of an Annuitant or payee other than an Owner, or the selection of certain Annuity Start Dates may result in certain tax consequences to you that are not discussed herein. An Owner contemplating any such transfer, assignment, designation or exchange, should consult a tax adviser as to the tax consequences. Withholding. Distributions from non-qualified Contracts generally are subject to withholding for the Owners federal income tax liability. The withholding rate varies according to the type of distribution and the Owners tax status. The Owner will be provided the opportunity to elect to not have tax withheld from distributions. Multiple Contracts. All non-qualified deferred annuity contracts that are issued by us (or our affiliates) to the same Owner during any calendar year are treated as one annuity contract for purposes of determining the amount includible in such Owners income when a taxable distribution occurs. Separate Account Charges. It is possible that the Internal Revenue Service may take a position that rider charges are deemed to be taxable distributions to you. Although we do not believe that a rider charge under the Contract should be treated as a taxable withdrawal, you should consult your tax adviser prior to selecting any rider or endorsement under the Contract. Health Care and Education Reconciliation Act of 2010. The Health Care and Education Reconciliation Act of 2010 (the Act) imposes a 3.8% tax in taxable years beginning in 2013 on an amount equal to the lesser of (a) net investment income; or (b) the excess of a taxpayers modified adjusted gross income over a specified income threshold ($250,000 for married couples filing jointly, $125,000 for married couples filing separately, and $200,000 for everyone else). Net investment income is defined for this purpose as including the excess (if any) of gross income from annuities over allowable deductions, as such terms are defined in the Act. The term net investment income does not include any distribution from an IRA or certain other retirement plans or arrangements. Please consult the impact of the Act on You with a competent tax adviser. Further Information. We believe that the Contracts will qualify as annuity contracts for Federal income tax purposes and the above discussion is based on that assumption. Further details can be found in the Statement of Additional Information under the heading Tax Status of the Contracts. Taxation of Qualified Contracts The tax rules that apply to Qualified Contracts vary according to the type of retirement plan and the terms and conditions of the plan. Your rights under a Qualified Contract may be subject to the terms of the retirement plan itself, regardless of the terms of the Qualified Contract. Adverse tax consequences may result if you do not ensure that contributions, distributions and other transactions with respect to the Contract comply with the law. Individual Retirement Annuities, (IRAs), as defined in Section 408 of the Tax Code, permit individuals to make annual contributions of up to the lesser of $5,500 for 2018 or 100% of the compensation included in your income for the year. The contributions may be deductible in whole or in part, depending on the individuals income. If you reach the age of 50 before the end of 2018, you are entitled to an additional catch-up contribution of $1,000, raising your total annual contribution to $6,500. Distributions from certain pension plans may be rolled over or directly transferred into an IRA on a tax-deferred basis without regard to these limits. Amounts in the IRA (other than nondeductible contributions) are taxed at ordinary income rates when distributed from the IRA.

A ten percent penalty tax generally applies to distributions made before age 59 1/2, unless certain exceptions apply. The Internal Revenue Service has reviewed the Contract and its traditional IRA and SIMPLE IRA riders and has issued an opinion letter approving the form of the Contract and the riders for use as a traditional IRA and a SIMPLE IRA. SIMPLE IRAs permit certain small employers to establish SIMPLE plans as provided by Section 408(p) of the Tax Code, under which employees may elect to defer to a SIMPLE IRA a percentage of compensation up to a limit specified in the Tax Code (as increased for cost of living adjustments). The sponsoring employer is required to make matching or non-elective contributions on behalf

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document of the employees. Distributions from SIMPLE IRAs are subject to the same restrictions that apply to IRA distributions and are taxed as ordinary income. Subject to certain exceptions, premature distributions prior to age 59 1/2 are subject to a ten percent penalty tax, which is increased to

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents 25% if the distribution occurs within the first two years after the commencement of the employees participation in the plan. Roth IRAs, as described in Tax Code section 408A, permit certain eligible individuals to make non-deductible contributions to a Roth IRA up to a limit specified in the Tax Code or as a rollover or transfer from another Roth IRA or other IRA. A rollover from or conversion of an IRA to a Roth IRA is generally subject to tax and other special rules apply. The Owner may wish to consult a tax adviser before combining any converted amounts with any other Roth IRA contributions, including any other conversion amounts from other tax years. Distributions from a Roth IRA generally are not taxed, except that, once aggregate distributions exceed contributions to the 1 Roth IRA, income tax and a ten percent penalty tax may apply to distributions made (1) before age 59 /2 (subject to certain exceptions) or (2) during the five taxable years starting with the year in which the first contribution is made to any Roth IRA. A ten percent penalty tax may apply to amounts attributable to a conversion from an IRA if they are distributed during the five taxable years beginning with the year in which the conversion was made. Unlike the traditional IRA, there are no minimum required distributions during the Owners lifetime; however, required distributions at death are generally the same. SEP IRAs, as described in Tax Code section 408(k), permit employers to make contributions to IRAs on behalf of their employees. SEP IRAs generally are subject to the same tax rules and limitations regarding distributions as IRAs, and they are subject to additional requirements regarding plan participation and limits on contributions. Other Tax Issues Qualified Contracts have minimum distribution rules that govern the timing and amount of distributions. You should consult a tax adviser for more information about these distribution rules. Distributions from Qualified Contracts generally are subject to withholding for the Owners Federal income tax liability. The withholding rate varies according to the type of distribution and the Owners tax status. The Owner will be provided the opportunity to elect to not have tax withheld from distributions. Due to regulatory requirements, we must include the value of your Guaranteed Minimum Death Benefit or the GRIB Rider in the calculation of your required minimum distribution. As a result of this calculation, your required minimum distribution may be significant, and the fair market value of your Contract, as reported on Form 5498, may exceed the Contract Value. However, only the Contract Value is available to you for withdrawals. You should consult a tax adviser for more information about these distribution rules. Our Taxes At the present time, we make no charge for any Federal, state or local taxes (other than the charge for state and local premium taxes) that we incur that may be attributable to the subaccounts of the Variable Account or to the Contracts. We do have the right in the future to make additional charges for any such tax or other economic burden resulting from the application of the tax laws that we determine is attributable to the subaccounts of the Variable Account or the Contracts. Under current laws in several states, we may incur state and local taxes (in addition to premium taxes). These taxes are not now significant and we are not currently charging for them. If they increase, we may deduct charges for such taxes. Federal Estate Taxes While no attempt is being made to discuss the Federal estate tax implications of the Contract, a purchaser should keep in mind that the value of an annuity contract owned by a decedent and payable to a beneficiary by virtue of surviving the decedent is included in the decedents gross estate. Depending on the terms of the annuity contract, the value of the annuity included in the gross estate may be the value of the lump sum payment payable to the designated beneficiary or the actuarial value of the payments to be received by the beneficiary. You should consult an estate planning adviser for more information. Generation-Skipping Transfer Tax Under certain circumstances, the Tax Code may impose a generation skipping transfer tax when all or part of an annuity contract is transferred to, or a death benefit is paid to, an individual two or more generations younger than the Owner. Regulations issued under the Tax Code may require us to deduct the tax from your Contract, or from any applicable payment, and pay it directly to the IRS.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Permanent Estate and Gift Tax Exemption The American Taxpayer Relief Act of 2012 (ATRA) permanently establishes the federal estate tax, gift tax and generation- skipping transfer tax exemptions at $5,000,000 indexed for inflation. ATRA also permanently establishes the maximum federal estate tax, gift tax and generation-skipping transfer tax rate at 40%. ATRA allows a deceased spouses estate to transfer any unused portion of the deceased spouses exemption amount to a surviving spouse. ATRA also unified the estate tax, gift tax and generation skipping transfer tax exemptions and provided for indexing of these exemptions for inflation beginning in 2012. The Tax Cut and Jobs Act of 2017, increased the federal estate, gift and generation-skipping transfer tax exemption amounts to $11,200,000 for individuals and $22,400,000 for married couples respectively beginning in 2018. These exemption amounts are scheduled to increase with inflation each year until 2025. On January 1, 2026, the exemption amounts are scheduled to revert to the 2017 levels, adjusted for inflation. Annuity Purchases by Residents of Puerto Rico The Internal Revenue Service has announced that income received by residents of Puerto Rico under life insurance or annuity contracts issued by a Puerto Rico branch of a United States life insurance company is U.S.-source income that is generally subject to United States Federal income tax. Annuity Purchases by Nonresident Aliens and Foreign Corporations The discussion above provides general information regarding U.S. federal income tax consequences to annuity purchasers that are U.S. citizens or residents. Purchasers that are not U.S. citizens or residents will generally be subject to U.S. federal withholding tax on taxable distributions from annuity contracts at a 30% rate, unless a lower treaty rate applies. In addition, purchasers may be subject to state and/or municipal taxes and taxes that may be imposed by the purchasers country of citizenship or residence. Prospective purchasers are advised to consult with a qualified tax adviser regarding U.S. state, and foreign taxation with respect to an annuity contract purchase. Foreign Tax Credits We may benefit from any foreign tax credits attributable to taxes paid by certain portfolios to foreign jurisdictions to the extent permitted under federal tax law. Possible Tax Law Changes Although the likelihood of legislative changes is uncertain, there is always the possibility that the tax treatment of the Contracts could change by legislation or otherwise. Consult a tax adviser with respect to legislative developments and their effect on the Contract. We have the right to modify the Contract in response to legislative changes that could otherwise diminish the favorable tax treatment that annuity contract Owners currently receive. We make no guarantee regarding the tax status of any Contract and do not intend the above discussion as tax advice. Additional Information

When We Will Make Payments During the Pay-in Period, we will usually pay the amounts of any surrender, partial withdrawal, or death benefit payment within seven calendar days after we receive all the required information. The required information includes your written request, any information or documentation we reasonably need to process your request, and, in the case of a death benefit, receipt and filing of due proof of death. However, we may suspend or postpone payments during any period when: the NYSE is closed, other than customary weekend and holiday closing, or trading on the NYSE is restricted as determined by the SEC; the SEC permits, by an order, the postponement for the protection of Owners; or the SEC determines that an emergency exists that would make the disposal of securities held in the Variable Account or the determination of their value not reasonably practicable.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document If you have submitted a recent check or draft, we have the right to defer payment of a surrender, withdrawals, or death benefit proceeds, or payments under a settlement option until we have assured ourselves that the check or draft has been honored.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents If mandated under applicable law, we may be required to reject a Premium Payment and/or otherwise block access to a Contract Owners account and thereby refuse to pay any request for transfers, partial withdrawals, a surrender, annuity payments, or death benefits. Once blocked, monies would be held in that account until instructions are received from the appropriate regulator. We may also be required to provide additional information about you or your account to government regulators. We have the right to defer payment for a surrender, partial withdrawal, death benefit or transfer from the Fixed Account for up to six months from the date we receive your written request. Distribution of the Contracts Distribution and Principal Underwriting Agreement. We have entered into a distribution agreement with Farmers Financial Solutions, LLC (FFS), our affiliate, for the distribution and sale of the Contracts. Pursuant to this agreement, FFS serves as principal underwriter for the Contracts. FFS is affiliated with Farmers through Farmers parent that provides management-related services to the parent companies of FFS. FFS offers the Contracts for sale through its sales representatives. We reimburse FFS for certain expenses it incurs in order to pay for the distribution of the Contracts (e.g., commissions). Compensation to Broker-Dealers Selling the Contracts. We pay commissions to FFS for sales of the Contracts by FFS sales representatives. Sales commissions may vary, but the commissions payable for Contract sales by sales representatives of FFS are expected not to exceed 7% of Premium Payments. Some sales representatives may elect to receive a lower commission on Premium Payments at the time of payment along with a quarterly or monthly payment based on Contract value for so long as the Contract remains in effect. FFS may be required to return to us first year commissions if the Contract is not continued through the first Contract Year. We may pay lower compensation on sales to Owners at older ages and at amounts over $1 million. Special Compensation Paid to FFS. We pay for FFS operating and other expenses, including overhead, legal, and accounting fees. We may also pay for certain sales expenses of FFS: sales representative training materials; marketing materials and advertising expenses; and certain other expenses of distributing the Contracts. In addition, we contribute indirectly to the deferred compensation for FFS sales representatives. FFS pays its sales representatives a portion of the commissions received for their sales of the Contracts. FFS sales representatives and their managers are also eligible for various cash benefits, such as cash production incentive bonuses based on aggregate sales of our variable insurance products (including this Contract) and/or other insurance products we issue, as well as certain insurance benefits and financing arrangements. In addition, FFS sales representatives who meet certain productivity, persistency and length of service standards and/or their managers may be eligible for additional non-cash compensation items. Non-cash compensation items that FFS and we may provide jointly include attendance at conferences, conventions, seminars and trips (including travel, lodging and meals in connection therewith), entertainment, awards, merchandise and other similar items. By selling this Contract, sales representatives and/or their managers may qualify for these productivity benefits. FFS sales representatives and managers may receive other payments from us for services that do not directly involve the sale of the Contracts, including payments made for the recruitment and training of personnel, production of promotional literature and similar services. Exclusive Access to FFS Distribution Network. In exchange for the amounts we pay to FFS, we receive exclusive access to FFS distribution network. The amounts we pay are designed especially to encourage the sale of our products by FFS. See the SAI for a discussion of the amounts of commissions we have paid to FFS in connection with its exclusive offering of the Contracts and other Farmers variable life insurance products. The prospect of receiving, or the actual receipt of the additional compensation, may provide FFS and/or its sales representatives with an incentive to recommend the Contracts to prospective Owners over the sales of other investments with respect to which FFS either does not receive additional compensation or receives lower levels of additional compensation. Ask your sales representative for further information about the compensation your sales representative and FFS may receive in connection with your purchase of a Contract. Also inquire about any revenue sharing arrangements that we may have with FFS, including the conflicts of interest that such arrangements may create.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document No specific charge is assessed directly to Contract Owners or the Variable Account to cover commissions and other incentives or payments described above in connection with the distribution of the Contracts. However, we

PAGE 45

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents intend to recoup commissions and other sales expenses and incentives we pay through the fees and charges we deduct under the Contract and through other corporate revenue. You should be aware that FFS and its sales representatives may receive different compensation or incentives for selling one product over another. In some cases, these payments may create an incentive for the selling firm or its sales representatives to recommend or sell this Contract to you. You may wish to take such payments into account when considering and evaluating any recommendation relating to the Contract. Legal Proceedings Like other life insurance companies, we are involved in lawsuits that arise in the ordinary course of the Companys business. These actions are in various stages of discovery and development, and some seek punitive as well as compensatory damages. In addition, we are, from time to time, involved as a party to various governmental and administrative proceedings. While it is not possible to predict the outcome of such matters with absolute certainty, at the present time, it appears that there are no pending or threatened lawsuits that are likely to have a material adverse impact on the Variable Account, on FFS ability to perform under its principal underwriting agreement, or on the Companys ability to meet its obligations under the Contracts. Reports to Owners Before the Annuity Start Date, we will mail a report to you at least annually at your last known address of record. The report will state the Contract Value (including the Contract Value in each subaccount and the Fixed Account), and any further information required by any applicable law or regulation. Contract Owners will also receive confirmations within 7 calendar days of each unscheduled financial transaction, such as Premium Payments, transfers, partial withdrawals, and a surrender. Scheduled financial transactions may be confirmed using quarterly statements. Inquiries Inquiries regarding your Contract may be made by calling or writing to us at the Service Center. Financial Statements The audited financial statements of Farmers New World Life Insurance Company and of Farmers Annuity Separate Account A are included in the SAI. You should consider the financial statements of Farmers New World Life Insurance Company as bearing only upon our ability to meet our obligations under the Policies. For a free copy of these audited financial statements, please call or write to us at the Service Center.

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The SAI contains additional information about the Contract and the Variable Account. You can obtain the SAI (at no cost) by writing to us at the address shown on the back cover or by calling 1-877-376-8008. The following is the Table of Contents for the SAI.

Page Additional Contract Provisions 2 The Contract 2 Incontestability 2 Incorrect Age or Sex 2 Nonparticipation 2 Waiver of Surrender Charge Riders 2 Tax Status of the Contracts 3

Calculation of Subaccount and Adjusted Historic Portfolio Performance Data 3 Money Market Subaccount Yields 3 Other Subaccount Yields 4 Average Annual Total Returns for the Subaccounts 5 Non-Standard Subaccount Total Returns 6 Adjusted Historic Portfolio Performance Data 6 Effect of the Records Maintenance Charge on Performance Data 6

Net Investment Factor

Condensed Financial Information 7

Addition, Deletion or Substitution of Investments 24

Resolving Material Conflicts 24

Voting Rights 24

Third Party Administration Agreement 24

Safekeeping of Variable Account Assets 24

Distribution of the Contracts 25

Legal Matters 25

Experts 25

Other Information 25

Financial Statements 26

Index to Financial Statements F-1

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The following tables of condensed financial information show Accumulation Unit values for each subaccount for the period since the subaccount started operation. An Accumulation Unit value is the unit we use to calculate the value of your interest in a subaccount. The tables below show two sets of Accumulation Unit values that reflect the highest and lowest levels of Variable Account Annual Expenses available under the Contract. Tables for one other set of Accumulation Unit values corresponding to the middle level of Variable Account Annual Expenses are included in the SAI, which is available (at no cost) by writing to us at the address shown on the back cover or by calling 1-877-376-8008. The Accumulation Unit value does not reflect the deduction of charges such as the annual Record Maintenance Charge that we subtract from your Contract Value by redeeming units. The data for 2017 used in the tables below is obtained from the audited financial statements of the Variable Account that can be found in the SAI.

No Optional Benefits Elected (Total Variable Account Annual Expenses of 1.15% of the daily net assets of the subaccount)

Calvert Variable Series, Inc.: VP SRI Mid Cap Growth Portfolio* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 19.85 21.92 2,166 2016 18.73 19.85 2,604 2015 19.59 18.73 2,832 2014 18.33 19.59 2,805 2013 14.27 18.33 9,929 2012 12.36 14.27 11,980 2011 12.22 12.36 15,786 2010 9.40 12.22 17,912 2009 7.20 9.40 20,963 2008 11.60 7.20 6,912 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Dreyfus Variable Investment Fund: Opportunistic Small Cap Portfolio (Service Class Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 16.84 20.71 54,375 2016 14.58 16.84 57,044 2015 15.13 14.58 73,560 2014 15.11 15.13 82,946 2013 10.31 15.11 90,236 2012 8.67 10.31 110,368 2011 10.21 8.67 103,316 2010 7.89 10.21 100,284 2009 6.35 7.89 113,450 2008 10.32 6.35 121,180

A-1 PAGE 48

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents No Optional Benefits Elected (Total Variable Account Annual Expenses of 1.15% of the daily net assets of the subaccount)

Dreyfus Variable Investment Fund: Quality Bond Portfolio (Service Class Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 15.10 15.56 20,208 2016 15.08 15.10 21,556 2015 15.55 15.08 24,849 2014 15.04 15.55 29,365 2013 15.49 15.04 33,011 2012 14.69 15.49 41,769 2011 13.91 14.69 46,039 2010 13.01 13.91 51,383 2009 11.48 13.01 74,966 2008 12.15 11.48 106,415 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

The Dreyfus Sustainable U.S. Equity Portfolio. (Service Class Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 14.73 16.76 11,572 2016 13.54 14.73 11,071 2015 14.18 13.54 12,484 2014 12.68 14.18 15,669 2013 9.57 12.68 15,909 2012 8.67 9.57 12,240 2011 8.71 8.67 13,328 2010 7.69 8.71 13,097 2009 5.83 7.69 9,817 2008 9.01 5.83 7,650

Deutsche Variable Series I: Deutsche Bond VIP (Class A Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 15.43 16.14 120,402 2016 14.73 15.43 122,060 2015 14.95 14.73 131,314 2014 14.18 14.95 149,610 2013 14.79 14.18 182,038 2012 13.88 14.79 238,071 2011 13.28 13.88 252,941 2010 12.58 13.28 299,452 2009 11.56 12.58 312,536 2008 14.05 11.56 342,551

A-2

Deutsche Variable Series I: Deutsche Core Equity VIP (Class A Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 17.82 21.32 83,653 2016 16.31 17.82 91,404 2015 15.68 16.31 101,033 2014 14.18 15.68 105,799 2013 10.45 14.18 112,047 2012 9.12 10.45 117,453 2011 9.24 9.12 132,368 2010 8.17 9.24 154,877 2009 6.16 8.17 172,904 2008 10.10 6.16 189,853 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Deutsche Variable Series I: Deutsche Global Small Cap VIP (Class A Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 21.62 25.65 90,907 2016 21.53 21.62 103,337 2015 21.52 21.53 116,352 2014 22.71 21.52 122,945 2013 16.90 22.71 128,052 2012 14.82 16.90 157,376 2011 16.63 14.82 169,651 2010 13.28 16.63 177,112 2009 9.07 13.28 191,951 2008 18.33 9.07 206,649

Deutsche Variable Series I: Deutsche CROCI® International VIP (Class A Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 6.60 7.96 339,938 2016 6.62 6.60 353,447 2015 7.09 6.62 370,655 2014 8.13 7.09 392,052 2013 6.84 8.13 397,859 2012 5.73 6.84 441,676 2011 6.96 5.73 468,660 2010 6.93 6.96 484,229 2009 5.25 6.93 506,549 2008 10.25 5.25 566,422

A-3

Deutsche Variable Series II: Deutsche CROCI U.S. VIP-A (Class A Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 27.68 33.62 165,885 2016 29.28 27.68 179,875 2015 31.80 29.28 197,730 2014 29.05 31.80 204,664 2013 22.45 29.05 223,408 2012 20.69 22.45 254,707 2011 14.48 20.69 285,961 2010 13.02 14.48 466,319 2009 10.51 13.02 515,917 2008 19.68 10.51 577,719

Deutsche Variable Series II: Deutsche Government & Agency Securities VIP (Class A Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 17.39 17.48 49,487 2016 17.39 17.39 53,353 2015 17.59 17.39 62,479 2014 16.90 17.59 71,756 2013 17.63 16.90 82,439 2012 17.33 17.63 93,452 2011 16.31 17.33 100,882 2010 15.47 16.31 110,203 2009 14.48 15.47 115,055 2008 13.96 14.48 123,393

Deutsche Variable Series II: Deutsche High Income VIP (Class A Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 21.55 22.90 77,689 2016 19.31 21.55 84,057 2015 20.44 19.31 98,634 2014 20.38 20.44 105,585 2013 19.10 20.38 120,429 2012 16.81 19.10 138,305 2011 16.38 16.81 148,779 2010 14.53 16.38 162,568 2009 10.50 14.53 177,514 2008 13.96 10.50 192,454

A-4 PAGE 51

Deutsche Variable Series II: Deutsche Money Market VIP (now Deutsche Government Money Market VIP) (Class A Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 10.80 10.73 35,135 2016 10.92 10.80 39,218 2015 11.04 10.92 43,553 2014 11.17 11.04 47,866 2013 11.30 11.17 56,221 2012 11.43 11.30 71,228 2011 11.56 11.43 101,748 2010 11.69 11.56 123,677 2009 11.78 11.69 73,010 2008 11.61 11.78 77,271

Deutsche Variable Series II: Deutsche Small Mid Cap Growth VIP (Class A Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 7.44 8.98 21,557 2016 6.90 7.44 22,340 2015 7.04 6.90 24,507 2014 6.74 7.04 24,623 2013 4.77 6.74 27,938 2012 4.22 4.77 28,066 2011 4.44 4.22 33,899 2010 3.47 4.44 38,106 2009 2.50 3.47 51,768 2008 5.01 2.50 51,279 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Fidelity® Variable Insurance Products Fund (VIP): Fidelity® VIP Growth Portfolio (Service Class Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 16.01 21.37 224,899 2016 16.08 16.01 241,837 2015 15.20 16.08 271,704 2014 13.82 15.20 296,295 2013 10.27 13.82 318,791 2012 9.07 10.27 357,549 2011 9.16 9.07 409,277 2010 7.47 9.16 445,362 2009 5.89 7.47 508,996 2008 11.30 5.89 523,485

A-5

Fidelity® Variable Insurance Products Fund (VIP): Fidelity® VIP Index 500 Portfolio (Service Class Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 19.89 23.91 198,698 2016 18.01 19.89 218,721 2015 17.99 18.01 255,337 2014 16.04 17.99 276,074 2013 12.28 16.04 326,954 2012 10.73 12.28 372,741 2011 10.64 10.73 415,489 2010 9.37 10.64 425,710 2009 7.49 9.37 475,934 2008 12.04 7.49 469,736

Fidelity® Variable Insurance Products Fund (VIP): Fidelity® VIP Mid Cap Portfolio (Service Class Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 37.18 44.36 93,317 2016 33.54 37.18 98,520 2015 34.44 33.54 108,162 2014 32.81 34.44 115,583 2013 24.39 32.81 128,588 2012 21.50 24.39 147,666 2011 24.36 21.50 170,550 2010 19.14 24.36 179,413 2009 13.83 19.14 202,994 2008 23.12 13.83 200,742

Fidelity® VIP Freedom Funds: Fidelity® VIP Freedom 2005 Portfolio (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 13.09 14.33 561 2016 12.64 13.09 588 2015 12.85 12.64 3,462 2014 12.49 12.85 3,360 2013 11.54 12.49 6,076 2012 10.68 11.54 6,810 2011 10.81 10.68 6,665 2010 9.84 10.81 6,653 2009 8.11 9.84 0 2008 9.82 8.11 0 * Inception date of the subaccount was 9/1/08

A-6

Fidelity® VIP Freedom Funds: Fidelity® VIP Freedom 2010 Portfolio (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 14.01 15.63 1,927 2016 13.47 14.01 2,036 2015 13.70 13.47 3,090 2014 13.29 13.70 3,092 2013 11.88 13.29 4,176 2012 10.77 11.88 4,575 2011 10.94 10.77 2,063 2010 9.83 10.94 2,997 2009 8.02 9.83 2,952 2008 9.80 8.02 0 * Inception date of the subaccount was 9/1/08

Fidelity® VIP Freedom Funds: Fidelity® VIP Freedom 2015 Portfolio (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 14.14 16.05 12,892 2016 13.55 14.14 13,149 2015 13.77 13.55 14,221 2014 13.34 13.77 15,326 2013 11.82 13.34 15,678 2012 10.69 11.82 16,086 2011 10.87 10.69 12,285 2010 9.74 10.87 16,797 2009 7.88 9.74 12,739 2008 9.79 7.88 4,137 * Inception date of the subaccount was 9/1/08

Fidelity® VIP Freedom Funds: Fidelity® VIP Freedom 2020 Portfolio (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 14.19 16.31 48,876 2016 13.57 14.19 51,857 2015 13.79 13.57 53,581 2014 13.33 13.79 54,614 2013 11.66 13.33 54,854 2012 10.43 11.66 54,301 2011 10.68 10.43 54,215 2010 9.45 10.68 25,909 2009 7.44 9.45 12,809 2008 9.72 7.44 4,110 * Inception date of the subaccount was 9/1/08

Fidelity® VIP Freedom Funds: Fidelity® VIP Freedom 2025 Portfolio (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 14.83 17.23 11,208 2016 14.15 14.83 12,712 2015 14.39 14.15 12,109 2014 13.88 14.39 16,080 2013 11.73 13.88 15,815 2012 10.33 11.73 17,772 2011 10.70 10.33 12,713 2010 9.37 10.70 5,817 2009 7.32 9.37 11,887 2008 9.71 7.32 0 * Inception date of the subaccount was 9/1/08

Fidelity® VIP Freedom Funds: Fidelity® VIP Freedom 2030 Portfolio (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 14.64 17.47 34,125 2016 13.92 14.64 34,638 2015 14.16 13.92 33,977 2014 13.67 14.16 33,275 2013 11.39 13.67 32,676 2012 10.00 11.39 31,662 2011 10.41 10.00 25,651 2010 9.09 10.41 8,763 2009 7.01 9.09 14,825 2008 9.65 7.01 247 * Inception date of the subaccount was 9/1/08

Fidelity® VIP Freedom Funds: Fidelity® VIP Freedom Income Portfolio (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 12.36 13.24 9,492 2016 12.00 12.36 9,380 2015 12.21 12.00 5,671 2014 11.93 12.21 5,737 2013 11.47 11.93 5,697 2012 10.92 11.47 5,275 2011 10.89 10.92 4,937 2010 10.27 10.89 4,736 2009 9.06 10.27 598 2008 9.94 9.06 403 * Inception date of the subaccount was 9/1/08

Fidelity® VIP FundsManager Portfolios: Fidelity® VIP FundsManager 20% (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 12.17 12.90 14,466 2016 11.99 12.17 17,434 2015 12.15 11.99 16,308 2014 11.82 12.15 23,840 2013 11.34 11.82 22,665 2012 10.88 11.34 22,374 2011 10.77 10.88 29,117 2010 10.15 10.77 17,931 2009 9.32 10.15 10,212 2008 9.94 9.32 0 * Inception date of the subaccount was 9/1/08

Fidelity® VIP FundsManager Portfolios: Fidelity® VIP FundsManager 50% (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 13.81 15.59 65,734 2016 13.42 13.81 63,835 2015 13.57 13.42 63,187 2014 13.08 13.57 66,800 2013 11.54 13.08 65,966 2012 10.60 11.54 60,352 2011 10.80 10.60 43,313 2010 9.77 10.80 26,062 2009 8.32 9.77 21,699 2008 9.83 8.32 3,751 * Inception date of the subaccount was 9/1/08

Fidelity® VIP Funds Manager Portfolios: Fidelity® VIP FundsManager 70% (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 14.51 17.07 72,825 2016 14.00 14.51 71,812 2015 14.12 14.00 193,071 2014 13.59 14.12 199,332 2013 11.31 13.59 192,896 2012 10.13 11.31 203,584 2011 10.55 10.13 186,466 2010 9.36 10.55 145,176 2009 7.61 9.36 107,480 2008 9.74 7.61 15,157 * Inception date of the subaccount was 9/1/08

Fidelity® VIP Funds Manager Portfolios: Fidelity® VIP FundsManager 85% (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 14.86 18.06 14,545 2016 14.25 14.86 14,203 2015 14.37 14.25 29,817 2014 13.83 14.37 29,303 2013 10.97 13.83 28,764 2012 9.73 10.97 38,224 2011 10.41 9.73 37,820 2010 9.08 10.41 38,046 2009 7.15 9.08 30,451 2008 9.66 7.15 0 * Inception date of the subaccount was 9/1/08

Franklin Templeton Variable Insurance Products Trust: Franklin Small-Mid Cap Growth VIP Fund (Class 2 Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 18.32 21.99 69,013 2016 17.79 18.32 76,760 2015 18.49 17.79 84,364 2014 17.40 18.49 87,365 2013 12.74 17.40 91,222 2012 11.62 12.74 92,631 2011 12.36 11.62 128,021 2010 9.79 12.36 126,723 2009 6.90 9.79 97,135 2008 12.14 6.90 93,843

Franklin Templeton Variable Insurance Products Trust: Franklin Small Cap Value VIP Fund (Class 2 Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 23.90 26.14 79,207 2016 18.57 23.90 78,860 2015 20.28 18.57 83,781 2014 20.40 20.28 85,758 2013 15.14 20.40 94,987 2012 12.94 15.14 93,879 2011 13.60 12.94 90,817 2010 10.73 13.60 75,831 2009 8.40 10.73 63,375 2008 12.69 8.40 63,043 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Franklin Templeton Variable Insurance Products Trust: Templeton Developing Markets VIP Fund (Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 16.67 23.14 64,533 2016 14.35 16.67 72,473 2015 18.06 14.35 77,572 2014 19.94 18.06 81,346 2013 20.36 19.94 88,172 2012 18.20 20.36 99,956 2011 21.88 18.20 105,779 2010 18.82 21.88 114,217 2009 11.03 18.82 121,700 2008 23.59 11.03 153,007 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Goldman Sachs Variable Insurance Trust: Goldman Sachs Strategic Growth Fund (Institutional Class Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 16.75 21.64 123,478 2016 16.62 16.75 132,376 2015 16.26 16.62 148,900 2014 14.47 16.26 163,888 2013 11.05 14.47 185,536 2012 9.33 11.05 209,482 2011 9.69 9.33 252,712 2010 8.85 9.69 288,539 2009 6.06 8.85 333,338 2008 10.52 6.06 394,481 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Goldman Sachs Variable Insurance Trust: Goldman Sachs Mid Cap Value Fund (Institutional Class Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 33.81 37.13 54,972 2016 30.12 33.81 56,344 2015 33.57 30.12 63,590 2014 29.90 33.57 72,293 2013 22.76 29.90 80,999 2012 19.43 22.76 88,625 2011 20.99 19.43 113,270 2010 16.99 20.99 126,674 2009 12.87 16.99 154,674 2008 20.74 12.87 180,812 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Goldman Sachs Variable Insurance Trust: Goldman Sachs Small Cap Equity Insights Fund (Institutional Class Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 27.01 29.79 19,761 2016 22.18 27.01 20,707 2015 22.92 22.18 22,898 2014 21.68 22.92 25,400 2013 16.17 21.68 26,744 2012 14.50 16.17 35,601 2011 14.56 14.50 39,174 2010 11.32 14.56 43,547 2009 8.95 11.32 45,712 2008 13.75 8.95 41,821

Janus Aspen Series: Janus Henderson Balanced Portfolio (Service Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 21.84 25.51 155,270 2016 21.18 21.84 192,670 2015 21.33 21.18 221,477 2014 19.94 21.33 252,247 2013 16.83 19.94 264,735 2012 15.02 16.83 274,203 2011 14.99 15.02 260,937 2010 14.02 14.99 245,554 2009 11.29 14.02 241,429 2008 13.61 11.29 191,507

Janus Aspen Series: Janus Henderson Forty Portfolio (Institutional Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 15.01 19.34 404,737 2016 14.86 15.01 450,510 2015 13.39 14.86 502,714 2014 12.46 13.39 548,505 2013 9.60 12.46 596,630 2012 7.82 9.60 655,471 2011 8.48 7.82 720,338 2010 8.04 8.48 762,060 2009 5.56 8.04 832,838 2008 10.06 5.56 866,006

A-12 PAGE 59

Janus Aspen Series: Janus Henderson Enterprise Portfolio (Service Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 23.67 29.74 19,742 2016 21.36 23.67 20.783 2015 20.82 21.36 22.657 2014 18.76 20.82 23.977 2013 14.37 18.76 24,641 2012 12.43 14.37 26,457 2011 12.78 12.43 32,486 2010 10.30 12.78 37,551 2009 7.21 10.30 63,905 2008 13.00 7.21 72,158 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

PIMCO Variable Insurance Trust: PIMCO VIT Foreign Bond Portfolio (U.S. Dollar-Hedged) (Administrative Class Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 21.25 21.59 67,068 2016 20.19 21.25 69,477 2015 20.36 20.19 85,906 2014 18.53 20.36 94,692 2013 18.64 18.53 113,985 2012 17.01 18.64 127,240 2011 16.12 17.01 142,382 2010 15.03 16.12 148,018 2009 13.15 15.03 152,157 2008 13.63 13.15 160,606

PIMCO Variable Insurance Trust: PIMCO VIT Low Duration Portfolio (Administrative Class Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 15.50 15.53 107,512 2016 15.46 15.50 111,715 2015 15.59 15.46 131,096 2014 15.64 15.59 146,529 2013 15.84 15.64 165,558 2012 15.13 15.84 196,215 2011 15.14 15.13 197,474 2010 14.54 15.14 221,323 2009 12.98 14.54 227,439 2008 13.19 12.98 234,453

A-13

Principal Variable Contracts Funds, Inc.: PVC Equity Income Account (Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 27.12 32.38 116,215 2016 23.76 27.12 122,264 2015 25.08 23.76 130,823 2014 22.56 25.08 142,540 2013 17.96 22.56 151,125 2012 16.12 17.96 173,718 2011 15.50 16.12 194,790 2010 13.53 15.50 225,747 2009 11.43 13.53 263,735 2008 17.55 11.43 302,314 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Principal Variable Contracts Funds, Inc.: PVC MidCap Account (Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 113.28 140.21 23,037 2016 104.06 113.28 23,568 2015 103.83 104.06 25,486 2014 93.19 103.83 27,845 2013 70.57 93.19 29,084 2012 59.90 70.57 32,533 2011 56.10 59.90 36,344 2010 45.83 56.10 40,839 2009 10.81 45.83 46,044 2008 15.56 10.81 179,771 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Principal Variable Contracts Funds, Inc.: PVC SmallCap Blend Account (now PVC SmallCap Account) (Class 2 Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 10.58 11.78 99,321 2016 9.14 10.58 100,030 2015 14.45 9.14 105,776 2014 13.73 14.45 72,460 2013 9.45 13.73 75,716 2012 8.23 9.45 79,388 2011 8.73 8.23 83,581 2010 6.97 8.73 92,523 2009 5.37 6.97 99,266 2008 9.25 5.37 105,592

Principal Variable Contracts Funds, Inc.: Principal Capital Appreciation Account (Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 22.98 27.36 17,040 2016 21.35 22.98 19,840 2015 21.19 21.35 23,322 2014 19.10 21.19 23,579 2013 14.61 19.10 26,070 2012 13.01 14.61 33,551 2011 13.18 13.01 36,277 2010 11.58 13.18 40,092 2009 9.04 11.58 51,570 2008 13.77 9.04 65,512 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Principal Variable Contracts Funds, Inc.: PVC SAM Balanced Portfolio (Class 2 Shares) (Strategic Asset Management (SAM) Portfolios) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 22.46 25.51 542,216 2016 21.31 22.46 589,923 2015 21.79 21.31 659,919 2014 20.68 21.79 721,839 2013 17.83 20.68 743,715 2012 16.03 17.83 848,537 2011 16.10 16.03 879,022 2010 14.37 16.10 902,540 2009 11.76 14.37 1,082,556 2008 16.16 11.76 1,250,263

Principal Variable Contracts Funds, Inc.: PVC SAM Conservative Balanced Portfolio (Class 2 Shares) (Strategic Asset Management (SAM) Portfolios) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 20.18 22.18 160,581 2016 19.25 20.18 176,618 2015 19.65 19.25 184,830 2014 18.77 19.65 204,834 2013 17.06 18.77 213,492 2012 15.56 17.06 235,658 2011 15.44 15.56 256,302 2010 13.98 15.44 236,477 2009 11.71 13.98 257,733 2008 14.70 11.71 269,950

Principal Variable Contracts Funds, Inc.: PVC SAM Conservative Growth Portfolio (Class 2 Shares) (Strategic Asset Management (SAM) Portfolios) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 23.77 28.07 390,855 2016 22.52 23.77 429,453 2015 23.09 22.52 484,198 2014 21.80 23.09 543,994 2013 17.95 21.80 586,589 2012 15.96 17.95 618,815 2011 16.24 15.96 663,941 2010 14.29 16.24 719,907 2009 11.53 14.29 857,208 2008 17.49 11.53 900,019

Principal Variable Contracts Funds, Inc.: PVC SAM Flexible Income Portfolio (Class 2 Shares) (Strategic Asset Management (SAM) Portfolios) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 18.81 20.11 234,907 2016 17.83 18.81 277,317 2015 18.32 17.83 285,941 2014 17.51 18.32 327,117 2013 16.48 17.51 328,746 2012 15.11 16.48 334,776 2011 14.82 15.11 324,153 2010 13.60 14.82 358,440 2009 11.49 13.60 335,474 2008 13.52 11.49 390,793

Principal Variable Contracts Funds, Inc.: PVC SAM Strategic Growth Portfolio (Class 2 Shares) (Strategic Asset Management (SAM) Portfolios) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 24.68 29.76 276,695 2016 23.57 24.68 309,778 2015 24.30 23.57 348,894 2014 22.69 24.30 387,420 2013 18.05 22.69 413,383 2012 15.85 18.05 493,822 2011 16.38 15.85 553,043 2010 14.26 16.38 633,204 2009 11.35 14.26 638,008 2008 18.39 11.35 659,983

A-16

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Both Optional Benefits Elected (the Guaranteed Minimum Death Benefit AND the Guaranteed Retirement Income Benefit) 1 (Total Variable Account Annual Expenses of 1.65% of the daily net assets of the subaccount)

Calvert Variable Series, Inc.: VP SRI Mid Cap Growth Portfolio* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 18.38 20.19 18 2016 17.42 18.38 19 2015 18.31 17.42 21 2014 17.22 18.31 22 2013 13.47 17.22 23 2012 11.73 13.47 25 2011 11.65 11.73 27 2010 9.01 11.65 29 2009 6.94 9.01 31 2008 11.23 6.94 34 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Dreyfus Variable Investment Fund: Opportunistic Small Cap Portfolio (Service Class Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 15.59 19.07 10,130 2016 13.57 15.59 11,028 2015 14.15 13.57 12,908 2014 14.19 14.15 13,484 2013 9.73 14.19 13,129 2012 8.23 9.73 15,499 2011 9.73 8.23 17,760 2010 7.56 9.73 20,992 2009 6.11 7.56 23,440 2008 9.99 6.11 25,342

Dreyfus Variable Investment Fund: Quality Bond Portfolio (Service Class Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 13.98 14.33 8,654 2016 14.03 13.98 8,326 2015 14.53 14.03 9,334 2014 14.13 14.53 9,561 2013 14.63 14.13 9,550 2012 13.94 14.63 10,336 2011 13.26 13.94 12,337 2010 12.46 13.26 14,612 2009 11.05 12.46 15,341 2008 11.76 11.05 21,447 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 1 We no longer offer the Guaranteed Retirement Income Benefit rider. If you have elected the Guaranteed Retirement Income Benefit rider and your Contract application was signed and dated before June 18, 2003, your Guaranteed Retirement Income Benefit rider remains in force and our obligations and duties to you under this rider will not change.

A-17 PAGE 64

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The Dreyfus Sustainable U.S. Equity Portfolio (Service Class Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 13.64 15.43 192 2016 12.59 13.64 237 2015 13.25 12.59 423 2014 11.91 13.25 519 2013 9.03 11.91 399 2012 8.22 9.03 399 2011 8.30 8.22 498 2010 7.37 8.30 0 2009 5.61 7.37 729 2008 8.72 5.61 1

Deutsche Variable Series I: Deutsche Bond VIP (Class A Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 14.20 14.79 16,371 2016 13.63 14.20 16,575 2015 13.89 13.63 18,568 2014 13.25 13.89 19,711 2013 13.88 13.25 20,968 2012 13.10 13.88 20,806 2011 12.60 13.10 23,544 2010 11.99 12.60 25,612 2009 11.07 11.99 26,884 2008 13.52 11.07 27,443

Deutsche Variable Series I: Deutsche Global Small Cap VIP (Class A Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 20.01 23.62 10,599 2016 20.02 20.01 11,591 2015 20.12 20.02 12,950 2014 21.33 20.12 13,512 2013 15.95 21.33 13,096 2012 14.06 15.95 15,349 2011 15.86 14.06 17,488 2010 12.73 15.86 20,007 2009 8.73 12.73 21,170 2008 17.74 8.73 26,940

A-18 PAGE 65

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Deutsche Variable Series I: Deutsche Core Equity VIP (Class A Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 16.40 19.53 38,167 2016 15.09 16.40 44,674 2015 14.58 15.09 46,626 2014 13.25 14.58 50,312 2013 9.81 13.25 54,567 2012 8.61 9.81 59,646 2011 8.76 8.61 65,935 2010 7.79 8.76 75,885 2009 5.90 7.79 75,398 2008 9.72 5.90 77,506 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Deutsche Variable Series I: Deutsche CROCI® International VIP (Class A Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 6.07 7.29 51,460 2016 6.13 6.07 57,338 2015 6.59 6.13 62,092 2014 7.59 6.59 60,170 2013 6.42 7.59 56,746 2012 5.41 6.42 62,014 2011 6.60 5.41 70,296 2010 6.60 6.60 73,269 2009 5.02 6.60 72,541 2008 9.86 5.02 90,275

Deutsche Variable Series II: Deutsche CROCI U.S. VIP-A (Class A Shares) 1 Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 25.48 30.80 37,519 2016 27.09 25.48 42,351 2015 29.57 27.09 44,540 2014 27.15 29.57 44,998 2013 21.08 27.15 46,990 2012 19.52 21.08 51,996 2011 13.73 19.52 58,689 2010 12.40 13.73 96,319 2009 10.06 12.40 98,820 2008 18.94 10.06 113,246

A-19

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Deutsche Variable Series II: Deutsche Government & Agency Securities VIP (Class A Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 16.00 16.01 16,043 2016 16.08 16.00 16,384 2015 16.35 16.08 18,125 2014 15.79 16.35 20,218 2013 16.55 15.79 21,777 2012 16.35 16.55 22,856 2011 15.46 16.35 26,723 2010 14.74 15.46 30,239 2009 13.87 14.74 29,604 2008 13.43 13.87 36,414

Deutsche Variable Series II: Deutsche High Income VIP (Class A Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 19.84 20.98 10,698 2016 17.87 19.84 10,670 2015 19.00 17.87 12,340 2014 19.04 19.00 14,967 2013 17.93 19.04 14,932 2012 15.86 17.93 14,829 2011 15.53 15.86 18,045 2010 13.85 15.53 19,422 2009 10.05 13.85 20,877 2008 13.44 10.05 26,404

Deutsche Variable Series II: Deutsche Government Money Market VIP (Class A Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 9.94 9.83 2,720 2016 10.10 9.94 3,977 2015 10.27 10.10 4,004 2014 10.44 10.27 3,947 2013 10.61 10.44 5,052 2012 10.78 10.61 5,153 2011 10.96 10.78 5,849 2010 11.14 10.96 5,175 2009 11.28 11.14 4,492 2008 11.18 11.28 16,616

A-20 PAGE 67

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Deutsche Variable Series II: Deutsche Small Mid Cap Growth VIP (Class A Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 6.85 8.23 4,850 2016 6.38 6.85 5,720 2015 6.55 6.38 5,758 2014 6.29 6.55 5,844 2013 4.48 6.29 5,802 2012 3.98 4.48 6,094 2011 4.21 3.98 6,410 2010 3.31 4.21 7,388 2009 2.39 3.31 7,444 2008 4.82 2.39 7,394 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Fidelity® Variable Insurance Products Fund (VIP): Fidelity® VIP Growth Portfolio (Service Class Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 14.82 19.69 27,810 2016 14.96 14.82 30,607 2015 14.20 14.96 35,715 2014 12.99 14.20 34,630 2013 9.69 12.99 35,849 2012 8.60 9.69 41,407 2011 8.73 8.60 50,047 2010 7.15 8.73 56,765 2009 5.67 7.15 63,445 2008 10.93 5.67 77,167

Fidelity® Variable Insurance Products Fund (VIP): Fidelity® VIP Index 500 Portfolio (Service Class Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 18.41 22.03 24,212 2016 16.75 18.41 26,064 2015 16.82 16.75 29,733 2014 15.07 16.82 28,310 2013 11.59 15.07 29,665 2012 10.18 11.59 33,669 2011 10.15 10.18 40,981 2010 8.98 10.15 47,164 2009 7.21 8.98 49,845 2008 11.65 7.21 59,311

A-21

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Both Optional Benefits Elected (the Guaranteed Minimum Death Benefit AND the Guaranteed Retirement Income Benefit) (Total Variable Account Annual Expenses of 1.65% of the daily net assets of the subaccount)

Fidelity® Variable Insurance Products Fund (VIP): Fidelity® VIP Mid Cap Portfolio (Service Class Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 34.41 40.86 8,641 2016 31.20 34.41 9,088 2015 32.20 31.20 8,682 2014 30.82 32.20 9,085 2013 23.02 30.82 9,976 2012 20.40 23.02 7,663 2011 23.22 20.40 11,295 2010 18.34 23.22 12,847 2009 13.31 18.34 21,296 2008 22.38 13.31 23,062

Fidelity® VIP Freedom Funds: Fidelity® VIP Freedom 2005 Portfolio (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 12.56 13.69 0 2016 12.19 12.56 0 2015 12.45 12.19 0 2014 12.16 12.45 0 2013 11.30 12.16 0 2012 0 11.30 0 2011 0 0 0 2010 0 0 0 2009 8.10 0 0 2008 9.81 8.10 0 * Inception date of the subaccount was 9/1/08

Fidelity® VIP Freedom Funds: Fidelity® VIP Freedom 2010 Portfolio (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 13.45 14.92 0 2016 12.99 13.45 0 2015 13.27 12.99 0 2014 12.95 13.27 0 2013 11.63 12.95 0 2012 0 11.63 0 2011 0 0 0 2010 0 0 0 2009 8.01 0 0 2008 9.80 8.01 0 * Inception date of the subaccount was 9/1/08

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Both Optional Benefits Elected (the Guaranteed Minimum Death Benefit AND the Guaranteed Retirement Income Benefit) (Total Variable Account Annual Expenses of 1.65% of the daily net assets of the subaccount)

Fidelity® VIP Freedom Funds: Fidelity® VIP Freedom 2015 Portfolio (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 13.57 15.33 0 2016 13.06 13.57 0 2015 13.35 13.06 0 2014 12.99 13.35 0 2013 11.57 12.99 0 2012 0 11.57 0 2011 0 0 0 2010 0 0 0 2009 7.87 0 0 2008 9.79 7.87 0 * Inception date of the subaccount was 9/1/08

Fidelity® VIP Freedom Funds: Fidelity® VIP Freedom 2020 Portfolio (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 13.62 15.58 5,913 2016 13.08 13.62 6,000 2015 13.36 13.08 3,142 2014 12.98 13.36 2,250 2013 11.41 12.98 2,511 2012 10.26 11.41 2,513 2011 10.56 10.26 2,815 2010 0 10.56 4,778 2009 7.43 0 0 2008 9.72 7.43 0 * Inception date of the subaccount was 9/1/08

Fidelity® VIP Freedom Funds: Fidelity® VIP Freedom 2025 Portfolio (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 14.23 16.46 0 2016 13.65 14.23 0 2015 13.94 13.65 0 2014 13.52 13.94 0 2013 11.48 13.52 0 2012 0 11.48 0 2011 0 0 0 2010 0 0 0 2009 7.29 0 0 2008 9.70 7.29 0 * Inception date of the subaccount was 9/1/08

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Fidelity® VIP Freedom Funds: Fidelity® VIP Freedom 2030 Portfolio (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 14.05 16.68 0 2016 13.43 14.05 0 2015 13.72 13.43 0 2014 13.31 13.72 0 2013 11.15 13.31 0 2012 0 11.15 0 2011 0 0 0 2010 0 0 0 2009 7.00 0 0 2008 9.65 7.00 0 * Inception date of the subaccount was 9/1/08

Fidelity® VIP Freedom Funds: Fidelity® VIP Freedom Income Portfolio (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 11.86 12.65 0 2016 11.58 11.86 0 2015 11.83 11.58 0 2014 11.62 11.83 0 2013 11.23 11.62 0 2012 0 11.23 0 2011 0 0 0 2010 0 0 0 2009 9.05 0 0 2008 9.94 9.05 0 * Inception date of the subaccount was 9/1/08

Fidelity® VIP FundsManager Portfolios: Fidelity® VIP FundsManager 20% (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 11.68 12.32 0 2016 11.56 11.68 0 2015 11.78 11.56 0 2014 11.51 11.78 0 2013 11.10 11.51 0 2012 0 11.10 0 2011 0 0 0 2010 0 0 0 2009 9.30 0 0 2008 9.94 9.30 0 * Inception date of the subaccount was 9/1/08

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Fidelity® VIP FundsManager Portfolios: Fidelity® VIP FundsManager 50% (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 13.25 14.89 454 2016 12.94 13.25 5,397 2015 13.16 12.94 0 2014 12.74 13.16 0 2013 11.30 12.74 0 2012 0 11.30 0 2011 0 0 0 2010 0 0 0 2009 8.31 0 0 2008 9.83 8.31 0 * Inception date of the subaccount was 9/1/08

Fidelity® VIP FundsManager Portfolios: Fidelity® VIP FundsManager 70% (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 13.93 16.30 0 2016 13.50 13.93 0 2015 13.69 13.50 0 2014 13.24 13.69 0 2013 11.07 13.24 0 2012 0 11.07 0 2011 0 0 0 2010 0 0 0 2009 7.60 0 0 2008 9.73 7.60 0 * Inception date of the subaccount was 9/1/08

Fidelity® VIP FundsManager Portfolios: Fidelity® VIP FundsManager 85% (Service Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 14.26 17.24 0 2016 13.74 14.26 0 2015 13.92 13.74 0 2014 13.47 13.92 0 2013 10.73 13.47 0 2012 0 10.73 0 2011 0 0 0 2010 0 0 0 2009 7.14 0 0 2008 9.66 7.14 0 * Inception date of the subaccount was 9/1/08

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Franklin Templeton Variable Insurance Products Trust: Franklin Small-Mid Cap Growth Securities Fund (Class 2 Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 16.96 20.25 5,916 2016 16.55 16.96 6,602 2015 17.28 16.55 7,579 2014 16.34 17.28 7,854 2013 12.03 16.34 7,891 2012 11.03 12.03 9,211 2011 11.78 11.03 10,186 2010 9.38 11.78 12,328 2009 6.64 9.38 13,544 2008 11.74 6.64 16,571

Franklin Templeton Variable Insurance Products Trust: Franklin Small Cap Value Securities Fund (Class 2 Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 22.56 24.56 78 2016 17.61 22.56 78 2015 19.33 17.61 78 2014 19.54 19.33 77 2013 14.58 19.54 76 2012 12.52 14.58 75 2011 13.22 12.52 74 2010 10.48 13.22 73 2009 8.25 10.48 14,068 2008 12.52 8.25 14,066

Franklin Templeton Variable Insurance Products Trust: Templeton Developing Markets Securities Fund (Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 15.34 21.19 670 2016 13.28 15.34 1,770 2015 16.79 13.28 1,832 2014 18.63 16.79 1,806 2013 19.11 18.63 1,701 2012 17.17 19.11 1,669 2011 20.74 17.17 1,632 2010 17.93 20.74 1,564 2009 10.56 17.93 2,264 2008 22.70 10.56 3,271 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

A-26

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Goldman Sachs Variable Insurance Trust: Goldman Sachs Strategic Growth Fund (Institutional Class Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 15.51 19.93 22,241 2016 15.46 15.51 25,311 2015 15.20 15.46 29,738 2014 13.59 15.20 31,600 2013 10.43 13.59 32,796 2012 8.85 10.43 38,261 2011 9.23 8.85 45,678 2010 8.48 9.23 51,528 2009 5.83 8.48 54,220 2008 10.18 5.83 68,732 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Goldman Sachs Variable Insurance Trust: Goldman Sachs Mid Cap Value Fund* (Institutional Class Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 31.29 34.19 11,297 2016 28.02 31.29 12,509 2015 31.38 28.02 14,289 2014 28.09 31.38 14,630 2013 21.48 28.09 14,985 2012 18.44 21.48 16,819 2011 20.02 18.44 19,445 2010 16.28 20.02 22,829 2009 12.39 16.28 26,034 2008 20.07 12.39 30,871 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Goldman Sachs Variable Insurance Trust: Goldman Sachs Structured Small Cap Equity Insights Fund (Institutional Class Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 25.00 27.44 116 2016 20.63 25.00 116 2015 21.42 20.63 115 2014 20.37 21.42 114 2013 15.26 20.37 113 2012 13.75 15.26 112 2011 13.89 13.75 110 2010 10.85 13.89 108 2009 8.62 10.85 106 2008 13.31 8.62 103

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Janus Aspen Series: Janus Henderson Balanced Portfolio (Service Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 20.22 23.50 3,022 2016 19.70 20.22 4,094 2015 19.94 19.70 4,465 2014 18.73 19.94 5,036 2013 15.89 18.73 5,675 2012 14.25 15.89 4,580 2011 14.29 14.25 15,235 2010 13.43 14.29 14,594 2009 10.87 13.43 2,687 2008 13.17 10.87 2,690

Janus Aspen Series: Janus Henderson Forty Portfolio (Institutional Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 13.82 17.72 88,543 2016 13.75 13.82 103,717 2015 12.45 13.75 108,755 2014 11.64 12.45 121,564 2013 9.02 11.64 127,408 2012 7.38 9.02 140,712 2011 8.04 7.38 164,338 2010 7.66 8.04 189,014 2009 5.32 7.66 191,934 2008 9.68 5.32 218,571

Janus Aspen Series: Janus Henderson Enterprise Portfolio (Service Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 21.91 27.39 3,924 2016 19.87 21.91 4,246 2015 19.46 19.87 4,771 2014 17.62 19.46 5,224 2013 13.57 17.62 5,341 2012 11.79 13.57 5,827 2011 12.19 11.79 6,372 2010 9.87 12.19 6,784 2009 6.94 9.87 8,559 2008 12.57 6.94 11,147 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

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PIMCO Variable Insurance Trust: PIMCO VIT Foreign Bond Portfolio (U.S. Dollar-Hedged) (Administrative Class Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 19.56 19.78 9,560 2016 18.68 19.56 10,434 2015 18.93 18.68 12,089 2014 17.31 18.93 12,873 2013 17.51 17.31 13,509 2012 16.06 17.51 14,628 2011 15.29 16.06 18,052 2010 14.32 15.29 20,518 2009 12.59 14.32 18,582 2008 13.12 12.59 23,593

PIMCO Variable Insurance Trust: PIMCO VIT Low Duration Portfolio (Administrative Class Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 14.27 14.23 22,039 2016 14.30 14.27 21,459 2015 14.50 14.30 24,374 2014 14.61 14.50 25,616 2013 14.87 14.61 26,220 2012 14.28 14.87 26,713 2011 14.36 14.28 36,713 2010 13.86 14.36 39,572 2009 12.43 13.86 43,212 2008 12.69 12.43 39,066

Principal Variable Contracts Funds, Inc.: PVC Equity Income Account (Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 25.10 29.82 14,957 2016 22.10 25.10 14,908 2015 23.44 22.10 14,735 2014 21.19 23.44 14,432 2013 16.96 21.19 15,611 2012 15.29 16.96 15,982 2011 14.78 15.29 16,657 2010 12.96 14.78 17,234 2009 11.00 12.96 16,643 2008 16.98 11.00 19,120 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

A-29

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Principal Variable Contracts Funds, Inc.: PVC MidCap Account (Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 104.85 129.15 973 2016 96.80 104.85 1,068 2015 97.06 96.80 1,229 2014 87.54 97.06 1,320 2013 66.62 87.54 1,337 2012 56.83 66.62 1,490 2011 53.49 56.83 1,856 2010 43.91 53.49 2,140 2009 10.41 43.91 2,395 2008 15.06 10.41 11,203 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Principal Variable Contracts Funds, Inc.: PVC SmallCap Account (Class 2 Shares) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 10.49 11.62 5,725 2016 9.10 10.49 5,876 2015 13.51 9.10 6,784 2014 12.89 13.51 5,079 2013 8.92 12.89 4,857 2012 7.81 8.92 5,353 2011 8.33 7.81 6,275 2010 6.68 8.33 6,699 2009 5.17 6.68 9,462 2008 8.95 5.17 13,707

Principal Variable Contracts Funds, Inc.: Principal Capital Appreciation Account (Class 2 Shares)* Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 21.69 25.71 5,414 2016 20.26 21.69 5,161 2015 20.20 20.26 4,869 2014 18.30 20.20 4,574 2013 14.06 18.30 4,259 2012 12.59 14.06 3,889 2011 12.81 12.59 3,447 2010 11.32 12.81 2,974 2009 8.88 11.32 2,451 2008 13.59 8.88 2,681 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors.

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Principal Variable Contracts Funds, Inc.: PVC SAM Balanced Portfolio (Class 2 Shares) (Strategic Asset Management (SAM) Portfolios) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 20.93 23.65 55,836 2016 19.95 20.93 55,234 2015 20.50 19.95 63,002 2014 19.55 20.50 76,570 2013 16.94 19.55 89,645 2012 15.31 16.94 101,600 2011 15.45 15.31 106,203 2010 13.86 15.45 110,583 2009 11.39 13.86 117,222 2008 15.74 11.39 112,512

Principal Variable Contracts Funds, Inc.: PVC SAM Conservative Balanced Portfolio (Class 2 Shares) (Strategic Asset Management (SAM) Portfolios) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 18.81 20.56 1,415 2016 18.02 18.81 1,083 2015 18.49 18.02 1,087 2014 17.75 18.49 11,953 2013 16.22 17.75 11,957 2012 14.86 16.22 11,961 2011 14.82 14.86 11,965 2010 13.48 14.82 23,630 2009 11.35 13.48 23,635 2008 14.32 11.35 27,109

Principal Variable Contracts Funds, Inc.: PVC SAM Conservative Growth Portfolio (Class 2 Shares) (Strategic Asset Management (SAM) Portfolios) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 22.15 26.03 31,755 2016 21.09 22.15 29,251 2015 21.73 21.09 36,024 2014 20.61 21.73 32,945 2013 17.06 20.61 29,996 2012 15.24 17.06 27,670 2011 15.59 15.24 28,140 2010 13.79 15.59 56,394 2009 11.18 13.79 67,865 2008 17.04 11.18 71,818

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Principal Variable Contracts Funds, Inc.: PVC SAM Flexible Income Portfolio (Class 2 Shares) (Strategic Asset Management (SAM) Portfolios) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 17.53 18.65 4,179 2016 16.69 17.53 4,640 2015 17.23 16.69 9,164 2014 16.56 17.23 8,989 2013 15.66 16.56 8,812 2012 0 15.66 10,746 2011 14.22 0 0 2010 13.11 14.22 8,023 2009 11.14 13.11 8,023 2008 13.17 11.14 11,823

Principal Variable Contracts Funds, Inc.: PVC SAM Strategic Growth Portfolio (Class 2 Shares) (Strategic Asset Management (SAM) Portfolios) Accumulation unit value at the Accumulation unit value at the Number of accumulation units beginning of the period end of the year outstanding at the end of the year 2017 23.00 27.59 21,030 2016 22.07 23.00 21,627 2015 22.87 22.07 22,562 2014 21.45 22.87 22,678 2013 17.16 21.45 22,693 2012 15.14 17.16 25,725 2011 15.72 15.14 26,610 2010 13.75 15.72 28,081 2009 11.00 13.75 30,964 2008 17.91 11.00 31,522

A-32 PAGE 79

The Statement of Additional Information (SAI) dated May 21, 2018 contains additional information about the Contract and the variable account. The Table of Contents for the SAI appears near the end of this prospectus. The SAI has been filed with the SEC and is incorporated by reference into this prospectus. You can obtain the SAI (at no cost) by writing to the Service Center at the address shown on the back cover or by calling 1-877-376-8008. The SEC maintains an Internet website (http://www.sec.gov) that contains the SAI and other information about us and the Contract. More information about us and the Contract (including the SAI) may also be reviewed and copied at the SECs Public Reference Room in Washington, DC, or may be obtained, upon payment of a duplicating fee, by writing the Public Reference Section of the SEC, 100 F Street, N.E., Washington, DC 20549. Additional information on the operation of the Public Reference Room may be obtained by calling the SEC at (202) 551-8090. Farmers Financial Solutions, LLC (FFS) serves as the principal underwriter and distributor of the Contracts. You may obtain more information about FFS and its registered representatives at http://www.finra.org or by calling 1-800-289-9999. You also can obtain an investor brochure from the Financial Industry Regulatory Authority (FINRA), describing its Public Disclosure Program.

SEC File Nos. 333-85183/811-09547

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Statement of Additional Information for the Farmers® Variable Annuity

Individual Flexible Premium Variable Annuity Contract

Issued Through Farmers Annuity Separate Account A

Offered by Farmers New World Life Insurance Company 3003 77th Avenue S.E. Mercer Island, Washington 98040 Phone: 1-800-238-9671

Service Center: P.O. Box 724208 Atlanta, Georgia 31139 Phone: 1-877-376-8008 (toll free) 8:00 a.m. to 6:00 p.m. Eastern Time

This Statement of Additional Information expands upon subjects discussed in the current Prospectus for the Farmers® Variable Annuity, an individual flexible premium variable annuity contract, offered by Farmers New World Life Insurance Company. You may obtain a copy of the Prospectus for the Contract dated May 21, 2018 by calling 1-877-376-8008 or by writing to our Service Center at P.O. Box 724208, Atlanta, Georgia 31139.

This Statement incorporates terms used in the current Prospectus for each Contract.

This Statement of Additional Information is not a prospectus and should be read only in conjunction with the Prospectuses for your Contract and the Portfolios.

The date of this Statement of Additional Information is May 21, 2018.

Page Additional Contract Provisions 2 The Contract 2 Incontestability 2 Misstatement of Age or Sex 2 Nonparticipation 2 Waiver of Surrender Charge Riders 2 Tax Status of the Contracts 3 Calculation of Subaccount and Adjusted Historic Portfolio Performance Data 3 Money Market Subaccount Yields 3 Other Subaccount Yields 4 Average Annual Total Returns for the Subaccounts 5 Non-Standard Subaccount Total Returns 6 Adjusted Historic Portfolio Performance Data 6 Effect of the Records Maintenance Charge on Performance Data 6 Accumulation Unit Value 7 Condensed Financial Information 7 Addition, Deletion or Substitution of Investments 24 Resolving Material Conflicts 24 Voting Rights 24 Third Party Administration Agreement 24 Safekeeping of Variable Account Assets 24 Distribution of the Contracts 25 Legal Matters 25 Experts 25 Other Information 25 Financial Statements 26 Index to Financial Statements F-1

The Contract The entire contract consists of the Contract, the signed application attached at issue, any attached amendments and supplements to the application, and any attached riders and endorsements. In the absence of fraud, we consider all statements in the application to be representations and not warranties. We will not use any statement to contest a claim unless that statement is in an attached application or in an amendment or supplement to the application attached to the Contract. The Contract is currently not being issued.

Any change in the Contract or waiver of its provisions must be in writing and signed by one of our officers. No other person no agent or registered representative has authority to change or waive any provision of the Contract.

Upon notice to you, we may modify the Contract if necessary to: permit the Contract or the variable account to comply with any applicable law or regulation that a governmental agency issues; assure continued qualification of the Contract under the Tax Code or other federal or state laws relating to retirement annuities or variable annuity contracts; or affect a change in the operation of the variable account or to provide additional investment options.

In the event of such modifications, we will make the appropriate endorsement to the Contract.

Incontestability We will not contest the Contract after the issue date.

Misstatement of Age or Sex If any Annuitants age or sex has been misstated, the benefits provided by this Contract will be adjusted to reflect the correct age or sex. After the annuity start date any adjustment for underpayment will be paid immediately with interest at a rate not to exceed 6.0%. Any Adjustment for overpayment will be deducted from future payments with interest at a rate not to exceed 6.0%

Nonparticipation This Contract is nonparticipating. It does not share in our surplus earnings.

Waiver of Surrender Charge Riders If available in the state where the Contract is issued, your Contract will include riders that waive, subject to terms of the Contract, surrender charges if: the Annuitant is under age 75 at the time of withdrawal or surrender, the Annuitant is confined to a skilled nursing facility and/or hospital continuously for a minimum of 90 days, and the Annuitant was not confined to a hospital or nursing facility within 6 months of the riders issue date. the Annuitant is diagnosed with a terminal illness at least one year after the issue date of the rider and has a life expectancy of 12 months (24 months in MA) or less and the withdrawal is $250,000 or less.

There is no additional charge for the issuance of these waivers of surrender charge riders. These riders may not be available in all states.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Tax Status of the Contracts Tax law imposes several requirements that variable annuities must satisfy in order to receive the tax treatment normally accorded to annuity contracts.

Diversification Requirements. The Tax Code requires that the investments of each investment division of the variable account underlying the Contracts be adequately diversified in order for the Contracts to be treated as annuity contracts for Federal income tax purposes. It is intended that each investment division, through the fund in which it invests, will satisfy these diversification requirements.

Owner Control. In some circumstances, owners of variable annuity contracts who retain excessive control over the investment of the underlying portfolio assets of the variable account may be treated as the owners of those assets and may be subject to tax on income produced by those assets. Although there is limited published guidance in this area and it does not address certain aspects of the contracts, we believe that the owner of a contract should not be treated as the owner of the underlying assets. We reserve the right to modify the contracts to bring them into conformity with applicable standards should such modification be necessary to prevent owners of the contracts from being treated as the owners of the underlying portfolio assets of the variable account.

Required Distributions. In order to be treated as an annuity contract for Federal income tax purposes, section 72(s) of the Tax Code requires any Non-Qualified Contract to contain certain provisions specifying how your interest in the Contract will be distributed in the event of the death of a holder of the Contract. Specifically, section 72(s) requires that (a) if any Owner dies on or after the annuity starting date, but prior to the time the entire interest in the Contract has been distributed, the entire interest in the Contract will be distributed at least as rapidly as under the method of distribution being used as of the date of such Owners death. If any Owner dies prior to the annuity start date, the entire interest in the Contract will be distributed within five years after the date of such Owners death. This requirement will be considered satisfied as to any portion of an Owners interest which is payable to or for the benefit of a designated beneficiary and which is distributed over the life of such designated beneficiary or over a period not extending beyond the life expectancy of that beneficiary, provided that such distributions begin within one year of the Owners death. The designated beneficiary refers to a natural person designated by the owner as a beneficiary and to whom ownership of the Contract passes by reason of death. However, if the designated beneficiary is the surviving spouse of the deceased Owner, the Contract may be continued with the surviving spouse as the new Owner.

The Non-Qualified Contracts contain provisions that are intended to comply with these Tax Code requirements, although no regulations interpreting these requirements have yet been issued. We intend to review such provisions and modify them if necessary to assure that they comply with the applicable requirements when such requirements are clarified by regulation or otherwise.

Other rules may apply to Qualified Contracts.

Calculation of Subaccount and Adjusted Historic Portfolio Performance Data We may advertise and disclose historic performance data for the subaccounts, including yields, standard annual total returns, and nonstandard measures of performance of the subaccounts. Such performance data will be computed, or accompanied by performance data computed, in accordance with the SEC defined standards.

Money Market Subaccount Yields Advertisements and sales literature may quote the current annualized yield of the Money Market subaccount for a seven-day period in a manner that does not take into consideration any realized or unrealized gains or losses, or income other than investment income, on shares of the Money Market Portfolio.

We compute this current annualized yield by determining the net change (not including any realized gains and losses on the sale of securities, unrealized appreciation and depreciation, and income other than investment income) at the end of the seven-day period in the value of a hypothetical subaccount under a Contract having a balance of one unit of the Money Market subaccount at the beginning of the period. We divide that net change in subaccount value by the value of the hypothetical subaccount at the beginning of the period to determine the base period return. Then we annualize this quotient on a 365-day basis. The net change in account value reflects (i) net income from the Money Market portfolio in which the hypothetical subaccount invests; and (ii) charges and deductions imposed under the Contract that are attributable to the hypothetical subaccount.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents These charges and deductions include the per unit charges for the records maintenance charge, the mortality and expense risk charge for the standard death benefit (and the mortality and expense risk charge for the Guaranteed Minimum Death Benefit and the Guaranteed Retirement Income Benefit) and the asset-based administration charge. For purposes of calculating current yields for a Contract, we use an average per unit records maintenance charge based on the $30 records maintenance charge.

We calculate the current yield by the following formula: Current Yield = ((NCSES)/UV) X (365/7)

Where: NCS = the net change in the value of the Money Market Portfolio (not including any realized gains or losses on the sale of securities, unrealized appreciation and depreciation, and income other than investment income) for the seven-day period attributable to a hypothetical subaccount having a balance of one subaccount unit. ES = per unit charges deducted from the hypothetical subaccount for the seven-day period. UV = the unit value for the first day of the seven-day period.

We may also disclose the effective yield of the Money Market subaccount for the same seven-day period, determined on a compounded basis. We calculate the effective yield by compounding the annualized base period return by adding one to the base return, raising the sum to a power equal to 365 divided by 7, and subtracting one from the result.

Effective Yield = (1 + ((NCS-ES)/UV))365/71

Where: NCS = the net change in the value of the Money Market portfolio (not including any realized gains or losses on the sale of securities, unrealized appreciation and depreciation, and income other than investment income) for the seven-day period attributable to a hypothetical subaccount having a balance of one subaccount unit. ES = per unit charges deducted from the hypothetical subaccount for the seven-day period. UV = the unit value for the first day of the seven-day period.

The Money Market subaccount yield is lower than the Money Market portfolios yield because of the charges and deductions that the Contract imposes.

The current and effective yields on amounts held in the Money Market subaccount normally fluctuate on a daily basis. Therefore, the disclosed yield for any given past period is not an indication or representation of future yields or rates of return. The Money Market subaccounts actual yield is affected by changes in interest rates on money market securities, average portfolio maturity of the Money Market Portfolio, the types and quality of securities held by the Money Market Portfolio and that Portfolios operating expenses. We may also present yields on amounts held in the Money Market subaccount for periods other than a seven-day period.

Yield calculations do not take into account the Surrender Charge that we assess on certain withdrawals of Contract Value.

Other Subaccount Yields Sales literature or advertisements may quote the current annualized yield of one or more of the subaccounts (except the Money Market subaccount) under the Contract for 30-day or one-month periods. The annualized yield of a subaccount refers to income that the subaccount generates during a 30-day or one-month period and is assumed to be generated during each period over a 12-month period.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents We compute the annualized 30-day yield by: dividing the net investment income of the portfolio attributable to the subaccount units, less subaccount expenses attributable to the Contract for the period, by the maximum offering price per unit on the last day of the period; multiplying the result by the daily average number of units outstanding for the period; compounding that yield for a 6-month period; and multiplying the result by 2.

Expenses of the subaccount include the records maintenance charge, the asset-based administration charge and the mortality and expense risk charge for the standard death benefit (and the mortality and expense risk charge for the Guaranteed Minimum Death Benefit and the Guaranteed Retirement Income Benefit). The yield calculation assumes that we deduct the records maintenance charge at the end of each Contract Year. For purposes of calculating the 30-day or one-month yield, we divide an average records maintenance charge collected by the average Contract Value in the subaccount to determine the amount of the charge attributable to the subaccount for the 30-day or one-month period. We calculate the 30-day or one-month yield by the following formula: Yield = 2 X ((((NIES)/(U X UV)) + 1)61)

Where: NI = net income of the portfolio for the 30-day or one-month period attributable to the subaccounts units. ES = charges deducted from the subaccount for the 30-day or one-month period. U = the average number of units outstanding. UV = the unit value at the close of the last day in the 30-day or one-month period.

The yield for the subaccount is lower than the yield for the corresponding portfolio because of the charges and deductions that the Contract imposes.

The yield on the amounts held in the subaccounts normally fluctuates over time. Therefore, the disclosed yield for any given past period is not an indication or representation of future yields or rates of return. The types and quality of securities that a portfolio holds and its operating expenses affect the corresponding subaccounts actual yield.

Yield calculations do not take into account the Surrender Charge that we assess on certain withdrawals of Contract Value.

Average Annual Total Returns for the Subaccounts Sales literature or advertisements may quote average annual total returns for one or more of the subaccounts for various periods of time. If we advertise total return for the Money Market subaccount, then those advertisements and sales literature will include a statement that yield more closely reflects current earnings than total return.

When a subaccount has been in operation for 1, 5, and 10 years, respectively, we will provide the average annual total return for these periods. We may also disclose average annual total returns for other periods of time.

Standard average annual total returns represent the average annual compounded rates of return that would equate an initial investment of $1,000 under a Contract to the redemption value of that investment as of the last day of each of the periods. Each periods ending date for which we provide total return quotations will be for the most recent calendar quarter-end practicable, considering the type of the communication and the media through which it is communicated.

We calculate the standard average annual total returns using subaccount unit values that we calculate on each business day based on the performance of the subaccounts underlying portfolio, the deductions for the mortality and expense risk charge for the standard death benefit (and in some cases, the mortality and expense risk charge for the Guaranteed Minimum Death Benefit and the Guaranteed Retirement Income Benefit), the asset-based administration charge and the records maintenance charge. The calculation reflects the deduction of the records maintenance charge by assuming a uniform reduction in the yield or total return which is determined by calculating the average impact of the records maintenance charge on in-force contracts.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents We calculate the standard total return by the following formula: TR = ((ERV/P)1/N )1

Where: TR = the average annual total return net of subaccount recurring charges. ERV = the ending redeemable value (minus any applicable Surrender Charge and records maintenance charge) of the hypothetical subaccount at the end of the period. P = a hypothetical initial payment of $1,000. N = the number of years in the period.

Non-Standard Subaccount Total Returns Sales literature or advertisements may quote average annual total returns for the subaccounts that do not reflect any Surrender Charges. We calculate such nonstandard total returns in exactly the same way as the average annual total returns described above, except that we replace the ending redeemable value of the hypothetical subaccount for the period with an ending value for the period that does not take into account any Surrender Charges.

We may disclose cumulative total returns in conjunction with the standard formats described above. We calculate the cumulative total returns using the following formula: CTR = (ERV/P)1

Where: CTR = the cumulative total return net of subaccount recurring charges for the period. ERV = the ending redeemable value of the hypothetical investment at the end of the period. P = a hypothetical single payment of $1,000.

Adjusted Historic Portfolio Performance Data Sales literature or advertisements may quote adjusted yields and total returns for the portfolios since their inception reduced by some or all of the fees and charges under the Contract. Such adjusted historic portfolio performance may include data that precedes the inception dates of the subaccounts. This data is designed to show the performance that would have resulted if the Contract had been in existence during that time.

We will disclose nonstandard performance data only if we disclose the standard performance data for the required periods.

Effect of the Records Maintenance Charge on Performance Data We will charge a records maintenance charge each year until the annuity start date. The amount is shown on the Contract Specifications page. The charge for a contract year will be imposed on the last valuation day of each contract year.

This charge will also be imposed on the annuity start date, unless the Annuitant is age 70 or older, or the date when the contract is surrendered.

The fee will be charged against the variable subaccounts and the fixed account proportionately. The portion of the fee charged to each subaccount will reduce the number of accumulation units standing to the credit of the contract in that subaccount.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Accumulation Unit Value The value of an accumulation unit for each of the subaccounts was arbitrarily set at an initial value. The Value at the end of any later valuation day is equal to A multiplied by B. A is equal to the subaccounts accumulation unit value for the end of the immediately preceding valuation day. B is equal to the net investment factor for the most current valuation day. The net investment factor for each subaccount equals the fraction obtained by dividing (X) by (Y) minus (Z) where: (X) equals: 1. the net asset value per portfolio share held in the subaccount at the end of the current valuation day; plus 2. the per share amount of any dividend or capital gain distribution on portfolio shares held in the subaccount during the current valuation day; less 3. the per share amount of any capital loss distribution on portfolio shares held in the subaccount during the current valuation day. (Y) equals the net asset value per portfolio share held in the subaccount as of the end of the immediately preceding valuation day. (Z) equals charges and fees deducted from the subaccount. These consist of: 1. Mortality and expense risk charges. 2. Charge for administrative costs. and 3. Any applicable charges, fees and expenses for riders, endorsements or supplemental benefits attached to the Contract. We will only deduct these charges if we do not collect them by redeeming Accumulation Units.

Condensed Financial Information The following tables of condensed financial information show accumulation unit values corresponding to the middle level of Variable Account Annual Expenses (1.40%) for each subaccount for the period since the subaccount started operation. An accumulation unit value is the unit we use to calculate the value of your interest in a subaccount. Tables for other sets of accumulation unit values that reflect the highest and lowest levels of the Variable Account Annual Expenses available under the Contract are found in Appendix A to the prospectus. The accumulation unit value does not reflect the deduction of charges such as the Record Maintenance Charge or Surrender Charge that we subtract from your Contract Value by redeeming units. The data for 2017 used in the tables below is obtained from the audited financial statements of the variable account that can be found in this SAI.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents One Optional Benefit Elected (Either the Guaranteed Minimum Death Benefit OR the Guaranteed Retirement Income Benefit)1 (Total Variable Account Annual Charges of 1.40% of the daily net assets of the subaccount)

Calvert Variable Series, Inc.: VP SRI Mid Cap Growth Portfolio* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 19.10 21.03 11,509 2016 18.06 19.10 11,966 2015 18.93 18.06 13,731 2014 17.76 18.93 13,772 2013 13.87 17.76 14,388 2012 12.04 13.87 16,312 2011 11.93 12.04 19,099 2010 9.20 11.93 11,795 2009 7.07 9.20 12,321 2008 11.41 7.07 13,197

* The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Dreyfus Variable Investment Fund: Opportunistic Small Cap Portfolio (Service Class Shares) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 16.20 19.87 57,843 2016 14.07 16.20 68,758 2015 14.63 14.07 77,036 2014 14.64 14.63 92,928 2013 10.02 14.64 95,565 2012 8.45 10.02 99,780 2011 9.97 8.45 97,180 2010 7.73 9.97 91,270 2009 6.23 7.73 100,907 2008 10.15 6.23 99,265

Dreyfus Variable Investment Fund: Quality Bond Portfolio (Service Class Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 14.53 14.93 22,949 2016 14.54 14.53 24,841 2015 15.03 14.54 26,420 2014 14.58 15.03 32,625 2013 15.05 14.58 38,928 2012 14.31 15.05 39,580 2011 13.58 14.31 44,563 2010 12.73 13.58 52,573 2009 11.26 12.73 60,194 2008 11.95 11.26 70,777

* The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 1 We no longer offer the Guaranteed Retirement Income Benefit rider. If you have elected the Guaranteed Retirement Income Benefit rider and your initial Contract application was signed and dated before June 18, 2003, your Guaranteed Retirement Income Benefit rider remains in force, a 0.25% Mortality and Expense Risk Charge will continue to be assessed, and our obligations and duties to you under this rider will not change.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents The Dreyfus Sustainable U.S. Equity Portfolio, Inc. (Service Class Shares) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 14.17 16.08 1,343 2016 13.06 14.17 1,915 2015 13.71 13.06 2,507 2014 12.29 13.71 14,236 2013 9.30 12.29 14,194 2012 8.44 9.30 17,628 2011 8.50 8.44 2,017 2010 7.53 8.50 5,547 2009 5.72 7.53 2,800 2008 8.87 5.72 3,328 Deutsche Variable Series I: Deutsche Bond VIP (Class A Shares) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 14.80 15.45 157,023 2016 14.17 14.80 165,565 2015 14.41 14.17 149,497 2014 13.70 14.41 148,618 2013 14.33 13.70 171,871 2012 13.48 14.33 183,846 2011 12.94 13.48 178,999 2010 12.28 12.94 201,171 2009 11.31 12.28 220,262 2008 13.79 11.31 252,404 Deutsche Variable Series I: Deutsche Global Small Cap VIP (Class A Shares) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 20.79 24.61 64,510 2016 20.76 20.79 80,366 2015 20.81 20.76 88,590 2014 22.01 20.81 97,227 2013 16.42 22.01 112,603 2012 14.43 16.42 132,075 2011 16.24 14.43 155,357 2010 13.00 16.24 157,996 2009 8.90 13.00 157,356 2008 18.03 8.90 168,529

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Deutsche Variable Series I: Deutsche Core Equity VIP (Class A Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 17.09 20.40 53,972 2016 15.69 17.09 61,196 2015 15.12 15.69 71,182 2014 13.71 15.12 75,067 2013 10.12 13.71 83,790 2012 8.86 10.12 88,148 2011 9.00 8.86 98,390 2010 7.98 9.00 106,522 2009 6.03 7.98 133,588 2008 9.91 6.03 162,274

* The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Deutsche Variable Series I: Deutsche CROCI ® International VIP (Class A Shares) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 6.33 7.61 203,651 2016 6.37 6.33 226,123 2015 6.84 6.37 245,243 2014 7.86 6.84 253,913 2013 6.62 7.86 275,170 2012 5.57 6.62 286,436 2011 6.78 5.57 322,078 2010 6.76 6.78 328,086 2009 5.13 6.76 339,414 2008 10.05 5.13 419,280

Deutsche Variable Series II: Deutsche CROCI U.S. VIP (Class A Shares) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 26.55 32.18 122,721 2016 28.16 26.55 140,928 2015 30.66 28.16 152,815 2014 28.08 30.66 161,048 2013 21.75 28.08 185,815 2012 20.09 21.75 206,283 2011 14.10 20.09 230,805 2010 12.71 14.10 370,442 2009 10.28 12.71 407,277 2008 19.30 10.28 480,608

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Deutsche Variable Series II: Deutsche Government & Agency Securities VIP (Class A Shares) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 16.68 16.73 81,629 2016 16.72 16.68 87,310 2015 16.96 16.72 100,549 2014 16.33 16.96 102,565 2013 17.08 16.33 107,384 2012 16.83 17.08 111,610 2011 15.88 16.83 122,353 2010 15.10 15.88 137,259 2009 14.17 15.10 142,108 2008 13.69 14.17 140,501

Deutsche Variable Series II: Deutsche High Income VIP (Class A Shares) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 20.67 21.92 74,496 2016 18.57 20.67 77,990 2015 19.71 18.57 82,620 2014 19.69 19.71 88,737 2013 18.51 19.69 99,779 2012 16.33 18.51 116,823 2011 15.95 16.33 119,577 2010 14.18 15.95 126,887 2009 10.27 14.18 134,846 2008 13.70 10.27 155,993

Deutsche Variable Series II : Deutsche Government Money Market VIP (Class A Shares) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 10.36 10.27 40,580 2016 10.50 10.36 72,448 2015 10.65 10.50 42,018 2014 10.80 10.65 47,187 2013 10.95 10.80 52,793 2012 11.10 10.95 61,404 2011 11.25 11.10 68,938 2010 11.41 11.25 78,577 2009 11.53 11.41 44,938 2008 11.39 11.53 59,979

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Deutsche Variable Series II: Deutsche Small Mid Cap Growth VIP (Class A Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 7.14 8.60 13,475 2016 6.63 7.14 14,096 2015 6.79 6.63 14,462 2014 6.51 6.79 18,100 2013 4.62 6.51 25,380 2012 4.10 4.62 31,488 2011 4.33 4.10 33,920 2010 3.39 4.33 37,142 2009 2.44 3.39 46,952 2008 4.91 2.44 55,114

* The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Fidelity® Variable Insurance Products Fund (VIP): Fidelity® VIP Growth Portfolio (Service Class Shares) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 15.41 20.51 187,786 2016 15.51 15.41 193,709 2015 14.69 15.51 216,917 2014 13.40 14.69 247,483 2013 9.97 13.40 279,517 2012 8.83 9.97 304,673 2011 8.94 8.83 323,965 2010 7.31 8.94 338,813 2009 5.78 7.31 375,209 2008 11.11 5.78 416,120

Fidelity® Variable Insurance Products Fund (VIP): Fidelity® VIP Index 500 Portfolio (Service Class Shares) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 19.14 22.95 265,023 2016 17.37 19.14 171,984 2015 17.39 17.37 200,256 2014 15.55 17.39 222,725 2013 11.93 15.55 245,092 2012 10.45 11.93 261,515 2011 10.39 10.45 295,186 2010 9.17 10.39 303,699 2009 7.35 9.17 329,709 2008 11.85 7.35 374,156

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Fidelity® Variable Insurance Products Fund (VIP): Fidelity® VIP Mid Cap Portfolio (Service Class Shares) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 35.76 42.58 69,562 2016 32.35 35.76 79,411 2015 33.30 32.35 83,858 2014 31.80 33.30 100,191 2013 23.70 31.80 112,455 2012 20.94 23.70 122,954 2011 23.78 20.94 140,550 2010 18.74 23.78 140,759 2009 13.57 18.74 140,432 2008 22.75 13.57 143,947

Fidelity® VIP Freedom Funds: Fidelity® VIP Freedom 2005 Portfolio (Service Class 2 Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 12.82 14.01 0 2016 12.41 12.82 0 2015 12.65 12.41 0 2014 12.32 12.65 0 2013 0 12.32 0 2012 0 0 0 2011 0 0 0 2010 0 0 0 2009 8.10 0 0 2008 9.81 8.10 0

* Inception date of the subaccount was 9/1/08.

Fidelity® VIP Freedom Funds: Fidelity® VIP Freedom 2010 Portfolio (Service Class 2 Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 13.73 15.27 14,274 2016 13.23 13.73 17,252 2015 13.48 13.23 18,544 2014 13.12 13.48 32,672 2013 11.75 13.12 32,716 2012 10.68 11.75 32,677 2011 10.88 10.68 30,850 2010 9.80 10.88 15,498 2009 8.02 9.80 14,007 2008 9.80 8.02 0

* Inception date of the subaccount was 9/1/08.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Fidelity® VIP Freedom Funds: Fidelity® VIP Freedom 2015 Portfolio (Service Class 2 Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 13.85 15.68 25,771 2016 13.30 13.85 26,550 2015 13.56 13.30 26,873 2014 13.16 13.56 40,965 2013 11.70 13.16 41,863 2012 10.60 11.70 41,842 2011 10.80 10.60 41,952 2010 9.71 10.80 29,988 2009 7.88 9.71 16,750 2008 9.79 7.88 0

* Inception date of the subaccount was 9/1/08.

Fidelity® VIP Freedom Funds: Fidelity® VIP Freedom 2020 Portfolio (Service Class 2 Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 13.90 15.94 41,363 2016 13.32 13.90 44,852 2015 13.57 13.32 47,529 2014 13.16 13.57 48,417 2013 11.54 13.16 49,322 2012 10.35 11.54 39,282 2011 10.62 10.35 39,428 2010 9.42 10.62 34,753 2009 7.43 9.42 23,030 2008 9.72 7.43 0

* Inception date of the subaccount was 9/1/08.

Fidelity® VIP Freedom Funds: Fidelity® VIP Freedom 2025 Portfolio (Service Class 2 Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 14.52 16.84 77,070 2016 13.90 14.52 65,987 2015 14.16 13.90 74,321 2014 13.70 14.16 73,981 2013 11.60 13.70 78,241 2012 10.25 11.60 63,841 2011 10.64 10.25 49,544 2010 9.34 10.64 31,638 2009 7.30 9.34 32,537 2008 9.71 7.30 6,498

* Inception date of the subaccount was 9/1/08.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Fidelity® VIP Freedom Funds: Fidelity® VIP Freedom 2030 Portfolio (Service Class 2 Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 14.34 17.07 39,553 2016 13.67 14.34 43,002 2015 13.94 13.67 45,585 2014 13.49 13.94 47,042 2013 11.27 13.49 48,505 2012 9.92 11.27 47,484 2011 10.35 9.92 20,634 2010 9.06 10.35 9,875 2009 7.00 9.06 4,726 2008 9.65 7.00 302

* Inception date of the subaccount was 9/1/08.

Fidelity® VIP Freedom Funds: Fidelity® VIP Freedom Income Portfolio (Service Class 2 Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 12.11 12.94 8,687 2016 11.79 12.11 8,578 2015 12.02 11.79 8,580 2014 11.77 12.02 8,581 2013 11.35 11.77 8,523 2012 10.83 11.35 8,359 2011 10.83 10.83 3,689 2010 10.24 10.83 37 2009 9.06 10.24 3 2008 9.94 9.06 0

* Inception date of the subaccount was 9/1/08.

Fidelity® VIP FundsManager Portfolios. Fidelity® VIP FundsManager 20% (Service Class 2 Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 11.92 12.60 27,156 2016 11.78 11.92 27,672 2015 11.96 11.78 18,751 2014 11.66 11.96 18,766 2013 11.22 11.66 19,100 2012 10.79 11.22 24,800 2011 10.70 10.79 18,614 2010 10.12 10.70 11,869 2009 9.31 10.12 9,954 2008 9.94 9.31 0

* Inception date of the subaccount was 9/1/08.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Fidelity® VIP FundsManager Portfolios. Fidelity® VIP FundsManager 50% (Service Class 2 Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 11.92 15.24 19,740 2016 11.78 11.92 27,672 2015 11.96 11.78 18,751 2014 11.66 11.96 18,766 2013 11.22 11.66 19,100 2012 10.79 11.22 24,800 2011 10.70 10.79 18,614 2010 10.12 10.70 11,869 2009 9.31 10.12 9,954 2008 9.94 9.31 0

* Inception date of the subaccount was 9/1/08.

Fidelity® VIP FundsManager Portfolios. Fidelity® VIP FundsManager 70% (Service Class 2 Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 14.22 16.68 41,273 2016 13.75 14.22 42,651 2015 13.90 13.75 58,573 2014 13.41 13.90 54,383 2013 11.19 13.41 52,317 2012 10.04 11.19 49,224 2011 10.49 10.04 42,819 2010 9.33 10.49 19,594 2009 7.60 9.33 20,824 2008 9.73 7.60 3,232

* Inception date of the subaccount was 9/1/08.

Fidelity® VIP FundsManager Portfolios. Fidelity® VIP FundsManager 85% (Service Class 2 Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 14.56 17.64 145,094 2016 14.00 14.56 148,350 2015 14.14 14.00 149,098 2014 13.65 14.14 137,625 2013 10.85 13.65 137,106 2012 9.65 10.85 133,996 2011 10.35 9.65 130,094 2010 9.05 10.35 60,064 2009 7.15 9.05 29,378 2008 9.66 7.15 23,738

* Inception date of the subaccount was 9/1/08.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Franklin Templeton Variable Insurance Products Trust: Franklin Small-Mid Cap Growth VIP Fund (Class 2 Shares) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 17.63 21.10 63,266 2016 17.16 17.63 72,363 2015 17.87 17.16 78,239 2014 16.86 17.87 94,952 2013 12.38 16.86 99,139 2012 11.32 12.38 103,226 2011 12.06 11.32 100,874 2010 9.58 12.06 81,187 2009 6.77 9.58 76,606 2008 11.94 6.77 70,254

Franklin Templeton Variable Insurance Products Trust: Franklin Small Cap Value VIP Fund (Class 2 Shares) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 23.22 25.34 49,401 2016 18.08 23.22 50,705 2015 19.80 18.08 63,614 2014 19.96 19.80 66,192 2013 14.86 19.96 69,806 2012 12.73 14.86 74,946 2011 13.41 12.73 71,783 2010 10.60 13.41 53,930 2009 8.33 10.60 57,404 2008 12.60 8.33 63,402

Franklin Templeton Variable Insurance Products Trust: Templeton Developing Markets VIP Fund (Class 2 Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 15.99 22.14 22,751 2016 13.81 15.99 29,098 2015 17.41 13.81 32,793 2014 19.27 17.41 33,995 2013 19.73 19.27 37,471 2012 17.68 19.73 40,949 2011 21.30 17.68 59,812 2010 18.37 21.30 69,744 2009 10.79 18.37 78,929 2008 23.14 10.79 96,323

* The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Goldman Sachs Variable Insurance Trust: Goldman Sachs Strategic Growth Fund (Institutional Class Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 16.12 20.77 92,085 2016 16.03 16.12 107,567 2015 15.72 16.03 118,325 2014 14.02 15.72 134,888 2013 10.74 14.02 160,643 2012 9.08 10.74 180,926 2011 9.46 9.08 221,189 2010 8.66 9.46 246,284 2009 5.94 8.66 271,360 2008 10.35 5.94 335,150 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Goldman Sachs Variable Insurance Trust: Goldman Sachs Mid Cap Value Fund (Institutional Class Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 32.52 35.63 40,174 2016 29.05 32.52 47,778 2015 32.46 29.05 52,053 2014 28.98 32.46 55,214 2013 22.11 28.98 62,305 2012 18.93 22.11 69,968 2011 20.50 18.93 85,832 2010 16.63 20.50 92,767 2009 12.63 16.63 103,132 2008 20.40 12.63 122,026 * The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Goldman Sachs Variable Insurance Trust: Goldman Sachs Small Cap Equity Insights Fund (Institutional Class Shares) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 25.98 28.59 11,215 2016 21.39 25.98 12,785 2015 22.16 21.39 14,931 2014 21.01 22.16 20,085 2013 15.71 21.01 24,982 2012 14.12 15.71 27,185 2011 14.22 14.12 29,013 2010 11.08 14.22 27,571 2009 8.78 11.08 31,980 2008 13.53 8.78 38,274

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Janus Aspen Series: Janus Henderson Balanced Portfolio (Service Shares) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 21.01 24.48 145.290 2016 20.42 21.01 168,664 2015 20.63 20.42 189,524 2014 19.32 20.63 198,386 2013 16.35 19.32 211,362 2012 14.63 16.35 222,112 2011 14.63 14.63 191,013 2010 13.72 14.63 191,315 2009 11.08 13.72 176,093 2008 13.39 11.08 146,038

Janus Aspen Series: Janus Henderson Forty Portfolio (Institutional Shares) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 14.40 18.51 274,380 2016 14.29 14.40 321,626 2015 12.91 14.29 356,541 2014 12.04 12.91 404,629 2013 9.31 12.04 522,090 2012 7.60 9.31 544,888 2011 8.26 7.60 608,851 2010 7.85 8.26 652,446 2009 5.44 7.85 749,042 2008 9.87 5.44 781,970

Janus Aspen Series: Janus Henderson Enterprise Portfolio (Service Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 22.77 28.54 10,675 2016 20.60 22.77 12,017 2015 20.13 20.60 13,368 2014 18.18 20.13 14,986 2013 13.96 18.18 15,790 2012 12.10 13.96 17,570 2011 12.48 12.10 19,148 2010 10.08 12.48 20,291 2009 7.08 10.08 22,352 2008 12.78 7.08 25,259

* The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents PIMCO Variable Insurance Trust: PIMCO VIT Foreign Bond Portfolio (U.S. Dollar-Hedged) (Administrative Class Shares) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 20.39 20.66 62,793 2016 19.42 20.39 77,993 2015 19.63 19.42 87,593 2014 17.91 19.63 91,901 2013 18.07 17.91 100,801 2012 16.37 18.07 121,067 2011 15.70 16.37 123,381 2010 14.67 15.70 123,650 2009 12.87 14.67 110,134 2008 13.37 12.87 122,558

PIMCO Variable Insurance Trust: PIMCO VIT Low Duration Portfolio (Administrative Class Shares) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 14.87 14.86 111,201 2016 14.87 14.87 119,554 2015 15.03 14.87 127,985 2014 15.11 15.03 143,919 2013 15.35 15.11 158,205 2012 14.70 15.35 182,987 2011 14.74 14.70 170,542 2010 14.20 14.74 175,945 2009 12.71 14.20 190,876 2008 12.94 12.71 215,510

Principal Variable Contracts Funds, Inc. (PVC): PVC Equity Income Account (Class 2 Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 26.09 31.07 81,075 2016 22.92 26.09 94,011 2015 24.24 22.92 109,359 2014 21.86 24.24 115,431 2013 17.45 21.86 129,397 2012 15.70 17.45 198,507 2011 15.14 15.70 237,477 2010 13.25 15.14 273,449 2009 11.21 13.25 306,406 2008 17.26 11.21 363,458

* The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Principal Variable Contracts Funds, Inc. (PVC): PVC MidCap Account (Class 2 Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 108.98 134.56 7,953 2016 100.36 108.98 9,820 2015 100.39 100.36 12,373 2014 90.32 100.39 13,740 2013 68.56 90.32 15,841 2012 58.34 68.56 17,538 2011 54.78 58.34 20,258 2010 44.85 54.78 23,219 2009 10.61 44.85 27,107 2008 15.31 10.61 111,974

* The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Principal Variable Contracts Funds, Inc. (PVC): PVC SmallCap Account) (Class 2 Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 10.54 11.70 25,215 2016 9.12 10.54 30,223 2015 13.97 9.12 32,765 2014 13.30 13.97 23,309 2013 9.18 13.30 28,881 2012 8.01 9.18 32,105 2011 8.53 8.01 37,231 2010 6.83 8.53 40,704 2009 5.27 6.83 44,955 2008 9.10 5.27 50,834

* The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Principal Variable Contracts Funds, Inc. (PVC): Principal Capital Appreciation Fund (Class 2 Shares)* Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 22.32 26.52 16,431 2016 20.79 22.32 16,849 2015 20.69 20.79 16,857 2014 18.70 20.69 17,295 2013 14.33 18.70 18,802 2012 12.80 14.33 21,191 2011 12.99 12.80 24,400 2010 11.45 12.99 27,318 2009 8.96 11.45 30,274 2008 13.68 8.96 30,984

* The subaccount that invests in this portfolio is closed to new investors. Please see Subaccounts Closed to New Investors in the prospectus.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Principal Variable Contracts Funds, Inc. (PVC): PVC SAM Balanced Portfolio (Class 2 Shares) (Strategic Asset Management (SAM) Portfolios) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 21.68 24.56 593,150 2016 20.62 21.68 683,490 2015 21.13 20.62 714,525 2014 20.11 21.13 759,126 2013 17.38 20.11 878,551 2012 15.67 17.38 893,393 2011 15.77 15.67 928,462 2010 14.11 15.77 969,812 2009 11.57 14.11 1,034,106 2008 15.95 11.57 1,103,030

Principal Variable Contracts Funds, Inc. (PVC): PVC SAM Conservative Balanced Portfolio (Class 2 Shares) (Strategic Asset Management (SAM) Portfolios) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 19.48 21.36 137,711 2016 18.62 19.48 152,562 2015 19.06 18.62 174,875 2014 18.25 19.06 183,065 2013 16.63 18.25 191,207 2012 15.21 16.63 193,265 2011 15.12 15.21 181,264 2010 13.72 15.12 177,752 2009 11.53 13.72 165,751 2008 14.51 11.53 220,779

Principal Variable Contracts Funds, Inc. (PVC): PVC SAM Conservative Growth Portfolio (Class 2 Shares) (Strategic Asset Management (SAM) Portfolios) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 22.94 27.03 501,469 2016 21.79 22.94 581,421 2015 22.40 21.79 639,363 2014 21.20 22.40 754,562 2013 17.50 21.20 792,028 2012 15.59 17.50 867,592 2011 15.91 15.59 858,425 2010 14.04 15.91 901,159 2009 11.36 14.04 970,676 2008 17.26 11.36 1,011,578

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Principal Variable Contracts Funds, Inc. (PVC): PVC SAM Flexible Income Portfolio (Class 2 Shares) (Strategic Asset Management (SAM) Portfolios) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 18.16 19.36 108,962 2016 17.25 18.16 114,834 2015 17.77 17.25 155,206 2014 17.03 17.77 181,060 2013 16.07 17.03 180,094 2012 14.77 16.07 182,295 2011 14.52 14.77 156,859 2010 13.35 14.52 169,512 2009 11.32 13.35 126,156 2008 13.35 11.32 91,501

Principal Variable Contracts Funds, Inc. (PVC): PVC SAM Strategic Growth Portfolio (Class 2 Shares) (Strategic Asset Management (SAM) Portfolios) Accumulation unit Accumulation Number of value at the unit value at accumulation units beginning of the end of outstanding at the the period the year end of the year 2017 23.82 28.65 348,442 2016 22.81 23.82 407,391 2015 23.57 22.81 443,435 2014 22.06 23.57 506,129 2013 17.60 22.06 523,803 2012 15.49 17.60 553,151 2011 16.04 15.49 569,130 2010 14.00 16.04 578,277 2009 11.18 14.00 589,198 2008 18.15 11.18 616,753

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Addition, Deletion or Substitution of Investments In the event of any substitution or change of the underlying portfolios, we may (by appropriate endorsement, if necessary) change the Contract to reflect the substitution or change. If we consider it to be in the best interest of owners and annuitants, and subject to any approvals that may be required under applicable law, the variable account may be operated as a management investment company under the 1940 Act, it may be deregistered under that Act if registration is no longer required, it may be combined with other of our variable accounts, or the assets may be transferred to another variable account. In addition, we may, when permitted by law, restrict or eliminate any voting rights you have under the Contracts.

Resolving Material Conflicts The funds currently sell shares to registered separate accounts of insurance companies other than us to support other variable annuity contracts and variable life insurance contracts. In addition, our other separate accounts and separate accounts of other affiliated life insurance companies may purchase some of the funds to support other variable annuity or variable life insurance contracts. Moreover, qualified retirement plans may purchase shares of some of the funds. As a result, there is a possibility that an irreconcilable material conflict may arise between your interests as a Contract owner and the interests of persons owning other contracts investing in the same funds. There is also the possibility that a material conflict may arise between the interests of owners generally, or certain classes of owners, and participating qualified retirement plans or participants in such retirement plans.

We currently do not foresee any disadvantages to you that would arise from the sale of fund shares to support variable life insurance contracts or variable annuity contracts of other companies or to qualified retirement plans. However, the management of each fund will monitor events related to its fund in order to identify any material irreconcilable conflicts that might possibly arise as a result of such fund offering its shares to support both variable life insurance contracts and variable annuity contracts, or support the variable life insurance contracts and/or variable annuity contracts issued by various affiliated and unaffiliated insurance companies. In addition, the management of the funds will monitor the funds in order to identify any material irreconcilable conflicts that might possibly arise as a result of the sale of its shares to qualified retirement plans, if applicable.

In the event of such a conflict, the management of the appropriate fund would determine what action, if any, should be taken in response to the conflict. In addition, if we believe that the response of the funds to any such conflict does not sufficiently protect you, then we will take our own appropriate action, including withdrawing the variable accounts investment in such funds, as appropriate.

Voting Rights We determine the number of votes you may cast by dividing your Contract Value in a subaccount by the net asset value per share of the portfolio in which that subaccount invests. We determine the number of votes available to you as of the same date that the fund establishes for determining shareholders eligible to vote at the relevant meeting of the portfolios shareholders. We will solicit voting instructions by sending you written materials before the funds meeting in accordance with the funds procedures.

Third Party Administration Agreement We have entered into a Master Administration Agreement (the Agreement) with McCamish Systems, L.L.C. (registered and known as McCamish Systems, LLC Insurance Administrators in the State of California only) (McCamish), a limited liability company organized and existing under the laws of Georgia. McCamish has its principal business address at 6452 Powers Ferry Road, Third Floor, Atlanta, Georgia 30339 (the Service Center). Under the Agreement, McCamish provides, at the Service Center and at its Contact Center located at 500 SW 7th Street, Suite 304, Des Moines, IA 50309, significant administrative services for the Contract and the variable account, including the processing of all premium payments, requests for transfers, partial withdrawals, and surrenders, and the calculation of accumulation unit values for each Contract and the variable account.

Safekeeping of Variable Account Assets We hold the title to the assets of the variable account. The assets are kept physically segregated and held separate and apart from our general account assets and from the assets in any other separate account. We and our agent, McCamish, maintain records of all purchases and redemptions of portfolio shares held by each of the subaccounts. Additional protection for the assets of the variable account is provided by a blanket fidelity bond issued by Federal Insurance Company to Farmers Group, Inc., providing coverage of $20,000,000 in the aggregate and $10,000,000 per occurrence (subject to a $1,000,000 deductible) for all officers and employees of Farmers Group, Inc.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Distribution of the Contracts We discontinued offering new Contracts in 2012. We will continue to accept premium and to process transactions for existing Contracts.

Farmers Financial Solutions, LLC (FFS) serves as the principal underwriter for the Contracts. FFS is a Nevada limited liability company and its home office is located at 30801 Agoura Road, Bldg 1, Agoura Hills, California 91301-2054. FFS is affiliated with Farmers through Farmers parent that provides management-related services to the parent companies of FFS. FFS is registered as a broker-dealer with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as well as with the securities commissions in the states in which it operates. FFS is a member of the Financial Industry Regulatory Authority (FINRA), and of the Securities Investor Protection Corporation. Currently, the Contracts are sold through FFS sales representatives who are appointed as our insurance agents.

We pay commissions to FFS for sales of the Contracts by its sales representatives. FFS received sales commissions with respect to the Contracts in the following amounts during the periods indicated:

Aggregate Amount of Commissions Aggregate Amount of Retained by FFS as Fiscal year Commissions Paid to FFS* Principal Underwriter 2012 $ 2,023,279 0 2013 $ 527,868 0 2014 $ 390,458 0 2015 $ 412,880 0 2016 $ 311,015 0 2017 $ 298,104 0

* Includes sales commissions paid to FFS.

FFS passes through commissions it receives as principal underwriter and does not retain any portion of it in return for its services as principal underwriter for the Contracts. As a selling firm, FFS retained approximately $131,992 in commissions in 2017.

We pay for certain of FFS operating and other expenses, including overhead, legal, and accounting fees. We may also pay for certain sales expenses of FFS: sales representative training materials; marketing materials and advertising expenses; and certain other expenses of distributing the Contracts. In addition, we contribute indirectly to the deferred compensation for FFS sales representatives and managers. FFS sales representatives and their managers are also eligible for various cash benefits, such as production incentive bonuses, insurance benefits and financing arrangements, and non-cash compensation items that we and our affiliates may provide jointly with FFS.

We may pay FFS additional cash amounts for: (1) exclusively offering the Contracts; (2) sales promotions relating to the Contracts; (3) costs associated with sales conferences and educational seminars for FFS sales representatives; and (4) other sales expenses incurred by them. We may make bonus payments to FFS based on aggregate sales or persistency standards.

Legal Matters Garrett B. Paddor, General Counsel and Corporate Secretary, Farmers New World Life Insurance Company, has passed upon all matters relating to Washington law pertaining to the Contracts, including the validity of the Contracts and the Companys authority to issue the Contracts.

Experts The financial statements of Farmers New World Life Insurance Company as of December 31, 2017 and 2016, and the related statements of operations and changes in capital and surplus, and of cash flows for the years ending December 31, 2017, 2016, and 2015 (prepared in conformity with accounting practices prescribed or permitted by the Office of the Insurance Commissioner of the State of Washington as described in Note 2 of the financial statements); and the financial statements of Farmers Annuity Separate Account A as of December 31, 2017 and for the period ending December 31, 2016 included in this SAI have been so included in reliance on the reports of PricewaterhouseCoopers LLP, 601 South Figueroa, Los Angeles, California 90017 an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Other Information We have filed a registration statement with the SEC under the Securities Act of 1933, as amended, with respect to the Contracts discussed in this Statement of Additional Information. The Statement of Additional Information does not include all of the information set forth in the registration statement, amendments and exhibits. Statements contained in this Statement of Additional Information concerning the content of the Contracts and other legal instruments are intended to be summaries. For a complete statement of the terms of these documents, you should refer to the instruments filed with the SEC.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Financial Statements The audited statutory financial statements of Farmers New World Life Insurance Company as of December 31, 2017 and 2016, and the related statutory statements of operations and changes in capital and surplus, and of cash flows for the years ending December 31, 2017, 2016, and 2015, prepared in accordance with accounting practices prescribed or permitted by the Office of the Insurance Commissioner of the State of Washington, which include the Independent Auditors Report, are included in the SAI. You should consider the financial statements of Farmers New World Life Insurance Company as bearing only upon our ability to meet our obligations under the Contracts.

The audited financial statements of Farmers Annuity Separate Account A as of December 31, 2017 and for the period ending December 31, 2016, as well as the Report of the Independent Registered Public Accounting Firm, are included in the SAI.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Index to Financial Statements Farmers New World Life Insurance Company Independent Auditors Report Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus as of December 31, 2017 and 2016 Statutory Statements of Operations for the Years Ending December 31, 2017, 2016, and 2015 Statutory Statements of Changes in Capital and Surplus for the Years Ending December 31, 2017, 2016, and 2015 Statutory Statements of Cash Flows for the Years Ending December 31, 2017, 2016, and 2015 Notes to Statutory Financial Statements Supplemental Schedule of Assets and Liabilities for the Year Ending December 31, 2017 Supplemental Summary Investment Schedule and Investment Risk Interrogatories for the Year Ending December 31, 2017

Farmers Annuity Separate Account A Report of Independent Registered Public Accounting Firm Statement of Assets and Liabilities as of December 31, 2017 Statement of Operations for the Period Ending December 31, 2017 Statements of Changes in Net Assets for the Periods Ending December 31, 2017 and 2016 Notes to Financial Statements

F-1

Page(s) Report of Independent Auditors 12 Statutory Financial Statements Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus 3 Statutory Statements of Operations 4 Statutory Statements of Changes in Capital and Surplus 5 Statutory Statements of Cash Flows 6 Notes to Statutory Financial Statements 760 Supplemental Schedules Supplemental Schedule of Assets and Liabilities 6164 Supplemental Summary Investment Schedule and Investment Risk Interrogatories 6568

Report of Independent Auditors

To the Board of Directors and Management of Farmers New World Life Insurance Company

We have audited the accompanying statutory financial statements of Farmers New World Life Insurance Company, a wholly owned subsidiary of Farmers Group, Inc., which comprise the statutory statements of admitted assets, liabilities and capital and surplus as of December 31, 2017 and 2016, and the related statutory statements of operations and changes in capital and surplus, and of cash flows for each of the three years in the period ended December 31, 2017.

Managements Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting practices prescribed or permitted by the Washington State Office of the Insurance Commissioner. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles As described in Note 2 to the financial statements, the financial statements are prepared by the Company on the basis of the accounting practices prescribed or permitted by the Washington State Office of the Insurance Commissioner, which is a basis of accounting other than accounting principles generally accepted in the United States of America.

The effects on the financial statements of the variances between the statutory basis of accounting described in Note 2 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

Adverse Opinion on U.S. Generally Accepted Accounting Principles In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles paragraph, the financial statements referred to above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Company as of December 31, 2017 and 2016, or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2017.

Opinion on Statutory Basis of Accounting In our opinion, the financial statements referred to above present fairly, in all material respects, the admitted assets, liabilities and capital and surplus of the Company as of December 31, 2017 and 2016 and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2017, in accordance with the accounting practices prescribed or permitted by the Washington State Office of the Insurance Commissioner described in Note 2.

Other Matter Our audit was conducted for the purpose of forming an opinion on the statutory-basis financial statements taken as a whole. The supplemental schedule of assets and liabilities, summary investment schedule and investment risk interrogatories (collectively, the supplemental schedules) of the Company as of December 31, 2017 and for the year then ended are presented to comply with the National Association of Insurance Commissioners Annual Statement Instructions and Accounting Practices and Procedures Manual and for purposes of additional analysis and are not a required part of the statutory-basis financial statements. The supplemental schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the statutory-basis financial statements. The supplemental schedules have been subjected to the auditing procedures applied in the audit of the statutory-basis financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the statutory-basis financial statements or to the statutory-basis financial statements themselves and other additional procedures, in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplemental schedules are fairly stated, in all material respects, in relation to the statutory-basis financial statements taken as a whole.

/s/ PricewaterhouseCoopers LLP Los Angeles, California May 17, 2018

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Farmers New World Life Insurance Company (A wholly owned subsidiary of Farmers Group, Inc.) Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus December 31, 2017, and 2016

(in thousands of dollars) 2017 2016 Admitted Assets Bonds, at amortized cost (market value of $3,037,830 and $5,274,477) $2,865,025 $4,985,672 Common stocks (cost of $3,307 and $52,990) 3,226 67,198 Mortgage loans on real estate 578,689 588,683 Investment real estate: Properties held for the production of income, net 135,687 112,448 Properties held for sale, net 4,841 25,512 Contract loans 283,721 284,183 Other invested assets 100,000 Receivables for securities 3,535 2,746 Securities lending reinvested collateral 10,678 5,405 Cash, cash equivalents and short-term investments 69,193 106,234 Total cash and invested assets 4,054,595 6,178,081 Accrued investment income 38,093 61,038 Deferred and uncollected premiums 92,651 95,507 Other assets 74,644 34,537 Current federal income tax recoverable and interest thereon 5,433 5,713 Net deferred tax asset 55,105 103,788 Separate accounts 806,798 676,681 Total admitted assets $5,127,319 $7,155,345 Liabilities Aggregate reserves for life and annuity policies $3,381,550 $5,247,480 Aggregate reserves for accident and health policies 4,932 4,616 Contract claims 40,121 40,806 Liability for deposit-type contracts 255,074 466,132 Premiums and annuity considerations received in advance 891 970 General expenses due and accrued 30,990 28,590 Taxes, licenses, and fees due and accrued 4,833 5,247 Unearned investment income 284 305 Amounts withheld or retained by company as agent or trustee 210 215 Amounts held for agents account 4,712 5,056 Remittances and items not allocated 10,563 8,494 Interest maintenance reserve 15,359 28,351 Asset valuation reserve 36,311 51,069 Securities lending collateral liability 10,678 5,405 Other liabilities 55,155 58,226 Separate accounts 806,798 676,681 Total liabilities 4,658,461 6,627,643 Capital and Surplus Common capital stock ($1 par value, 25,000,000 shares authorized, 6,600,000 shares issued and outstanding December 31, 2017 and 2016) 6,600 6,600 Gross paid-in and contributed surplus 3,199 3,199 Unassigned surplus 459,059 517,903 Total capital and surplus 468,858 527,702 Total liabilities and capital and surplus $5,127,319 $7,155,345

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

(in thousands of dollars) 2017 2016 2015 Revenues Premiums and annuity considerations $(1,738,445) $592,855 $600,006 Net investment income 186,642 260,196 265,162 Amortization of interest maintenance reserve 5,806 6,512 5,795 Commissions and expense allowances on reinsurance ceded 210,531 187,870 158,922 Reserve adjustments on reinsurance ceded 2,107,981 Other 9,693 9,459 10,897 Total revenues 782,208 1,056,892 1,040,782 Benefits and expenses Death and other benefits 235,343 234,391 253,874 Surrender benefits and other fund withdrawals 203,465 274,827 289,524 Interest on policy or contract funds 11,186 20,766 21,645 Increase in aggregate reserves 21,329 17,214 14,633 Commissions 89,761 88,257 99,259 General insurance expenses 198,050 197,905 195,671 Taxes, licenses and fees 27,531 26,587 25,219 Increase / (decrease) in loading on deferred and uncollected premiums (1,841 ) (4,292 ) (1,232 ) Transfers (from) / to separate accounts 527 5,827 2,401 Aggregate write-ins for deductions (118,009 ) 4 46 Total benefits and expenses 667,342 861,486 901,040 Net gain from operations before federal income taxes and realized capital gains 114,866 195,406 139,742 Federal income taxes (2,407 ) 69,042 39,064 Net gain from operations before realized capital gains 117,273 126,364 100,678 Net realized capital gains, less capital gains taxes of $60,750, $2,208 and $3,102 and transfers to interest maintenance reserve of $112,957, $8,531 and $5,476 at December 31, 2017, 2016 and 2015, respectively. Refer to note 3 for further breakout. 31,612 11,542 690 Net income $148,885 $137,906 $101,368

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

Gross Total Common Paid-In and Capital Capital Contributed Unassigned and (in thousands of dollars) Stock Surplus Surplus Surplus Balances at December 31, 2014 $6,600 $ 3,199 $487,830 $497,629 Net Income 101,368 101,368 Change in net unrealized capital gains 845 845 Change in net deferred taxes (9,512 ) (9,512 ) Change in nonadmitted assets 15,330 15,330 Change in asset valuation reserve (3,742 ) (3,742 ) Extraordinary dividends to stockholder (110,000) (110,000) SSAP No. 3 Real Estate Leasing Commissions (1,341 ) (1,341 ) SSAP No. 3 VUL Reserves Adjustment (279 ) (279 ) Balances at December 31, 2015 6,600 3,199 480,499 490,298 Net Income 137,906 137,906 Change in net unrealized capital gains 2,976 2,976 Change in net deferred taxes (3,233 ) (3,233 ) Change in nonadmitted assets 9,264 9,264 Change in asset valuation reserve 2,397 2,397 Extraordinary dividends to stockholder (105,000) (105,000) SSAP No. 3 Policy Loan adjustment (3,755 ) (3,755 ) SSAP No. 3 VUL Reserves Adjustment (3,151 ) (3,151 ) Balances at December 31, 2016 6,600 3,199 517,903 527,702 Net Income 148,885 148,885 Change in net unrealized capital gains (9,300 ) (9,300 ) Change in net deferred taxes (85,865 ) (85,865 ) Change in nonadmitted assets 36,469 36,469 Change in asset valuation reserve 14,758 14,758 Change in reserve on accout of change in valuation basis, (increase) or decrease (31 ) (31 ) Extraordinary dividends to stockholder (179,000) (179,000) Change in surplus as a result of reinsurance 15,240 15,240 Balances at December 31, 2017 $6,600 $ 3,199 $459,059 $468,858

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

(in thousands of dollars) 2017 2016 2015 Cash from operations Premiums collected net of reinsurance $547,074 $598,483 $602,806 Net investment income 220,148 272,317 271,251 Miscellaneous income 220,225 197,329 169,819 Cash provided by operating activities 987,447 1,068,129 1,043,876 Benefits and loss related payments 487,981 520,992 551,251 Net transfers (from) / to separate accounts (285 ) 3,877 766 Commissions, expenses paid and write-ins 315,473 314,240 318,408 Federal and foreign income taxes paid 58,100 66,552 50,974 Cash used in operating activities 861,269 905,661 921,399 Net cash from operations 126,178 162,468 122,477 Cash from investments Proceeds from investments sold, matured or repaid: Bonds 693,773 1,312,850 1,239,615 Common stocks 80,710 100,682 34,372 Mortgage loans 13,055 7,125 3,239 Real estate 41,252 11,699 Miscellaneous proceeds 3,155 10,109 25,702 Cash provided by investing activities 831,945 1,442,465 1,302,928 Cost of investments acquired (long-term only): Bonds 688,078 1,360,231 938,393 Common stocks 15,574 33,696 36,813 Mortgage loans 3,061 61,468 260,082 Real estate 32,710 4,286 71,516 Other invested assets 100,000 Miscellaneous applications 12,740 1,000 3,590 Cash paid for investing activities 852,163 1,460,681 1,310,394 Net (decrease) / increase in contract loans and premium notes (430 ) (3,788 ) (3,943 ) Net cash provided by / (used in) investments (19,788 ) (14,428 ) (3,523 ) Cash from financing and miscellaneous sources Net (withdrawals) / deposits on deposit-type contracts and other insurance liabilities 9,950 5,248 (3,481 ) Dividends to stockholder (179,000) (105,000 ) (110,000 ) Other cash (applied) / provided 25,620 (4,213 ) (20,456 ) Net cash used by financing and miscellaneous sources (143,430) (103,965 ) (133,937 ) Net change in cash, cash equivalents and short-term investments (37,041 ) 44,075 (14,983 ) Cash, cash equivalents and short-term investments Beginning of year 106,234 62,159 77,142 End of year $69,193 $106,234 $62,159

* As part of a reinsurance transaction with RGA in 2017, FNWL exchanged bonds with the book value of $2.1 billion in exchange for the assumption of FNWLs Deferred annuity, Variable annuity and Structured settlement reserves.

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

1. Nature of Operations The Company The accompanying financial statements include the accounts of Farmers New World Life Insurance Company (the Company), a wholly owned subsidiary of Farmers Group, Inc. (FGI), whose ultimate parent is Zurich Insurance Group Ltd (ZIG). FGI has attorney-in-fact relationships with three inter-insurance exchanges: Farmers Insurance Exchange, Fire Insurance Exchange, and Truck Insurance Exchange (the Exchanges).

The Company is a stock life insurance company domiciled in the state of Washington and is subject to regulation by the Washington State Office of the Insurance Commissioner (OIC). It is also subject to regulation by the states in which it transacts business.

Nature of Operations The Company concentrates its sales activities in the individual life insurance markets. Principal lines of business include traditional term and whole life products as well as universal life and variable universal life products.

The Company and the Exchanges operate using federally registered trade names, including Farmers Insurance Group of Companies, Farmers Insurance Group, Farmers, Farmers New World Life and Farmers Life. The Company and the Exchanges distribute their respective insurance products through a common network of direct writing agents and district managers. Each agent is required to first submit business to the insurers in the Farmers Insurance Group of Companies within the classes and lines of business written by such insurers. The Company is currently licensed in 49 states and the District of Columbia.

Business Risks The Company operates in a business environment that is subject to various risks and uncertainties, including but not limited to, mortality risk, market risk, interest rate risk and legal and regulatory changes. The Company is subject to various state and federal regulatory authorities. The potential exists for changes in regulatory initiatives that could result in additional, unanticipated expenses to the Company.

Existing federal laws and regulations affect the taxation of life insurance products and insurance companies. There can be no assurance as to what, if any, future legislation might be enacted, or if enacted, whether such legislation would include provisions with possible negative effects on the Companys life, accident and health or annuity products.

Going Concern The Companys management periodically evaluates whether there is substantial doubt about the Companys ability to continue as a going concern. Such substantial doubt is determined when relevant conditions and events, considered in the aggregate, indicate that it is probable that the Company will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. Management has determined that there is not a substantial doubt about the Companys ability to continue as a going concern.

2. Summary of Significant Accounting Policies Basis of Presentation The financial statements have been prepared in conformity with accounting practices prescribed or permitted by the OIC.

The OIC only recognizes statutory accounting practices prescribed or permitted by the State of Washington for reporting the financial condition and results of operations of an insurance company for the purposes of determining its compliance with the Washington Insurance Law. The National Association of Insurance Commissioners (NAIC) Accounting Practices and Procedures Manual (NAIC SAP) has been adopted as a component of prescribed or permitted practices by the State of Washington. The Commissioner of Insurance of the OIC has the power to permit other specific practices that may deviate from prescribed practices.

The Company did not use any permitted practices that differed from NAIC statutory accounting practices (SAP) as of December 31, 2017. A reconciliation of the Companys capital and surplus between NAIC SAP and practices prescribed or permitted by the OIC are shown below as of December 31, 2017 and 2016. The practices prescribed or permitted by the OIC did not have an impact on statutory surplus or net income.

(in thousands of dollars) State of Description Domicile 2017 2016 Statutory surplus, state basis Washington $468,858 $527,702 State prescribed practices that increase/decrease NAIC SAP Washington Statutory surplus, NAIC SAP Washington $468,858 $527,702

The effects on the financial statements of the variances between statutory basis of accounting and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material. Statutory accounting practices differ from GAAP in the following respects:

Investments Investments in bonds are stated at amortized cost or at values required by the NAIC. Under GAAP, bonds are reported at fair value or amortized cost based upon managements intent as to whether bonds are available for sale, will be held until maturity or are available for trading.

Asset Valuation Reserve The asset valuation reserve (AVR) is determined by NAIC prescribed formulas, which establish a provision for the risk of asset defaults, and is reported as a liability with changes recorded directly to unassigned surplus. Under GAAP, no such liability is established.

Interest Maintenance Reserve An interest maintenance reserve (IMR) is provided as required by the NAIC in order to defer certain realized investment gains and losses, net of tax, related to interest rate fluctuations, and to amortize such gains and losses through operating income over the remaining life of the securities sold. Any net unamortized deferred losses are nonadmitted and charged directly to unassigned surplus. No such reserve is required by GAAP.

Life Policy and Contract Reserves Life policy, annuity and contract reserves under statutory accounting practices are based on statutory mortality, morbidity, and interest requirements without consideration of withdrawals and Company experience, unless annual cash flow testing reveals the need to hold reserves in excess of the normal statutory reserves. One exception to this relates to deficiency reserves for certain term insurance plans issued on or after January 1, 2000, while another relates to Principles-Based Valuation for Life Products as required under VM-20 for plans issued on or after January 1, 2017. Both are mentioned in the Aggregate Reserves for Life and Annuity Policies section below. GAAP requires that policy reserves for traditional products be based upon the net level premium method utilizing managements best estimate of mortality, interest, and withdrawals prevailing when the policies were sold, except that for traditional life products, a provision for adverse deviations is used to make the reserves higher than best estimate assumptions would require. For interest sensitive products, the GAAP policy reserve is determined using the retrospective deposit method and is equal to the policy fund balance, before surrender charges. For Variable Annuities, we hold extra liability (SOP reserve) for Guaranteed Minimum Death Benefit (GMDB) and Guaranteed Retirement Income Benefit (GRIB). For Indexed Universal Life (IUL), GAAP reserve reflects an embedded derivative portion, so the reserve fluctuates as the market value of the option fluctuates.

Acquisition Costs Under statutory accounting practices, costs of acquiring new business are charged to operations in the year such costs are incurred. Under GAAP, such costs are deferred and amortized over the premium paying period of the policies for traditional products, or as a level percentage of gross profits for interest sensitive products.

Recognition of Revenue and Related Expenses Under statutory accounting practices, life premiums are recognized as income over the premium-paying period of the related policies. Annuity considerations are recognized as revenue when received. Accident and health premiums are earned ratably over the terms of the related insurance policies or reinsurance contracts. Deposits received on contracts that do not incorporate policyholder mortality or morbidity risks are recorded directly to liability for deposit-type contracts. Interest credited to deposit-type contracts is recorded as an expense in the statement of operations when earned under the terms of the contract. Expenses incurred in connection with acquisition of new insurance business, including acquisition costs such as sales commissions, are expensed as incurred in the statement of operations. Under statutory accounting practices, deferred premiums, representing gross premiums less loading, are reported as an admitted asset.

For GAAP purposes, premiums for traditional life insurance products, which include those products with fixed and guaranteed premiums and benefits and consist principally of whole and term life insurance policies, are recognized as revenues when due. Under GAAP, revenues for universal life insurance policies and for investment products consist of policy charges for the cost of insurance, policy administration charges, and surrender charges assessed against policyholder account balances during the year. Expenses related to these products include interest credited to policy account balances, benefit claims incurred in excess of policy account balances and commissions and expense allowances on reinsurance assumed. Revenues also include commissions and expense allowances on reinsurance ceded. Under GAAP, uncollected premiums are stated at gross amounts and deferred premiums are reflected as a reduction of the related aggregate reserve.

Reinsurance Under statutory accounting practices, reinsurance reserves and reinsurance recoverable on unpaid claims on reinsured business are netted in aggregate reserves and the liability for life policy claims, respectively. Under GAAP, these reinsurance amounts are reflected as an asset.

Federal Income Taxes Under statutory accounting practices, deferred income taxes are provided for temporary differences between the financial statement and tax bases of assets and liabilities at the end of each year based on enacted tax rates. Deferred income tax assets are reduced by a valuation allowance if it is more likely than not some portion or all of the deferred tax assets will not be realized. In addition to a valuation allowance, statutory accounting limits deferred tax assets to their admissible amount according to a prescribed formula. Changes in deferred income tax assets and liabilities are reported as adjustments to surplus. Under GAAP, changes in deferred income taxes are included in income tax expense or benefit and are allocated to continuing operations, discontinued operations, extraordinary items and items charged directly to shareholders equity consistently with the pre-tax income item to which they relate.

Nonadmitted Assets Under statutory accounting practices, certain assets, such as electronic data processing equipment and software, furniture and equipment, receivables over 90 days past due and certain deferred tax assets, are considered nonadmitted assets for statutory purposes as they may not be fully realizable at their carrying values in a liquidation scenario and, therefore, these nonadmitted assets and any changes in such assets are charged directly to unassigned surplus. There are no nonadmitted assets for GAAP purposes.

Separate Accounts Separate accounts assets are carried at fair value. Separate accounts liabilities represent the contract holders claims to the related assets. Investment income and realized capital gains and losses of the separate accounts accrue directly to the contract holders and, therefore, are not included in the Companys statutory basis statements of operations. Under GAAP these investment amounts and resulting changes in separate account liabilities are shown gross. Mortality, policy administration, and surrender charges to all accounts are included in the revenues of the Company and do not differ from GAAP.

The Company issues variable universal life (VUL) and is licensed to issue deferred variable annuity contracts although it suspended issuance of new variable annuities, effective September 30, 2012. The assets and liabilities held for VUL, Farmers EssentialLife VUL, Life Accumulator VUL and deferred variable annuity contracts are held in the Separate Accounts (the Accounts), which are legally segregated from the general assets of the Company.

Please see Note 15 for additional information on separate accounts.

Statements of Cash Flows The statutory basis statement of cash flows is presented as required under statutory accounting principles and differs in certain respects from the GAAP presentation.

Use of Estimates The preparation of financial statements in conformity with accounting practices prescribed or permitted by the OIC requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the

Aggregate Reserves for Life and Annuity Policies Life reserves are based on mortality tables approved by the NAIC using statutory specified interest rates and valuation methods that provide, in the aggregate, reserves that are greater than or equal to the minimum required by the OIC. Reserves for life insurance are based on the American Experience, 1941, 1958, 1980, 2001, or 2017 Commissioners Standard Ordinary (CSO) and Commissioners Extended Term (CET) mortality tables with interest rates from 2.25% to 6.00%. For certain term insurance plans issued on or after January 1, 2000, the Company calculates deficiency reserves using valuation mortality rates representative of actual Company experience, as permitted by the Valuation of Life Insurance Policies Model Regulation of the NAIC. For some plans issued on or after January 1, 2017, the Company calculates Principles-Based Reserves using Company experience, as required in VM-20. This will apply to all plans issued on or after January 1, 2017 after the end of the 3-year transition period. Reserves for deferred annuities, including variable annuities, are based on 1971 Individual Annuity Mortality (IAM), 1983 Table A, Annuity 2000, 2012 IAR, or 1994 Guaranteed Minimum Death Benefit mortality tables with interest rates from 3.50% to 6.00%. Reserves for equity-indexed annuities are based on 1983 Table A or Annuity 2000 mortality tables with interest rates from 4.25% to 5.50%. Reserves for immediate annuity contracts, other than structured settlements, are based on the Annuity Table for 1949, 1971 IAM, 1983 Table A, Annuity 2000, or 2012 IAR mortality tables with interest rates from 3.50% to 4.50%. Reserves for structured settlement annuities are based on the 1983 Table A mortality table with interest rates from 4.75% to 7.00%. The reserves held for structured settlement annuity contracts with a substandard rating are based on a rated age approach and are compliant with the approach specified by Actuarial Guideline 9A of the NAIC.

The Company waives deduction of deferred fractional premiums upon the death of the insured. For all plans, with the exception of its universal life plans, any portion of the final premium beyond the month of death is returned. For universal life plans, premiums beyond the date of death are not refunded. Surrender values are not promised in excess of the legally computed reserves.

For certain universal life policies, reserves for substandard lives are not separately identified and are calculated in the aggregate. For all other life policies, substandard lives are charged an extra premium plus the regular gross premium for the rated issue age. For the Farmers Level Term 2000 plan group and the Farmers Value Term group, the reserve is the standard interpolated terminal reserve at the rated age, plus the regular net unearned premium reserve at the rated age, plus an additional gross unearned premium reserve using the substandard extra premium charge for the premium payment mode. For all other plan groups, mean reserves are determined by computing the regular mean reserve for the plan at the rated age and holding, in addition, a substandard reserve of one-half of the annualized substandard extra premium charge. The reserves held for structured settlement annuity contracts with a substandard rating are based on a rated age approach.

As of December 31, 2017 and 2016, the Company had approximately $7,510,020,000 and $9,688,441,000 respectively, of insurance in force for which the gross premiums are less than the net premiums according to the standard valuation set by the OIC. The Company does not utilize anticipated investment income as a factor in the premium deficiency calculation.

For tabular interest on annuities involving life contingencies, the tabular less actual reserve released, and the tabular cost have been determined by formula. For annuities and other deposits not involving life contingencies the tabular interest was determined by one of the following methods: 1) serially using the actual interest credited to funds on deposit for the year, or 2) estimated in the aggregate from the beginning and the ending balances, assuming a uniform distribution of cash flows during the year, and the average statutory valuation interest rate.

Excess of Minimum Reserves As of December 31, 2017, the only life insurance plan written after January 1, 2001 which the statutory reserve basis is specifically selected to be more conservative than specified in Appendix A-820 is the Farmers Graded Death Benefit Whole Life product (FGDBWL). The mortality assumption used in the statutory reserve calculation is the 1980 CSO ALB Ultimate mortality, rather than the 2001 CSO ALB Select & Ultimate mortality.

As of December 31, 2017, the statutory reserves net of deferred and uncollected premiums is $9,573,000 while the tax reserves are $8,261,000.

Unpaid Loss/Claim Adjustment Expenses The Company accrues an operating expense for the cost of settling benefit claims incurred in the current period, with settlement in future periods. The estimate is based upon the time duration of expected transactions and the total expected costs of settlement, including overhead expenses for each transaction. The balance in the liability for the unpaid loss/claim adjustment expense as of December 31, 2017 and 2016 was approximately $862,000 and $634,000, respectively.

Reinsurance Premiums, commissions, expense reimbursements, benefits and reserves related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums ceded to other companies have been reported as a reduction of premium income. Amounts applicable to reinsurance ceded for future policy benefits, unearned premium reserves and claim liabilities have been reported as reductions of these items.

Investments Investments are valued as prescribed by the NAIC and as required by the OIC. Security transactions are recorded on a trade date basis and private placements are recorded on a funding date basis. Investments are recorded on the following bases: Bondsat cost, adjusted for amortization of premium or discount. Bonds with NAIC designations of 6 are reported at the lower of amortized cost or fair value. Discount or premium on bonds is amortized using the interest method on a prospective basis. A yield to worst amortization method is used to take into consideration any bond call or sinking fund feature. Loan-backed securities are amortized using the interest method including anticipated prepayments at the date of purchase. Prepayment assumptions are obtained from broker dealer surveys or internal estimates and are based on the current interest rate and economic environment. Significant changes in estimated cash flows from the original purchase assumptions are accounted for using the prospective method.

Unaffiliated common stocks- at fair value. In determining the estimated fair value disclosed for these securities, management obtained quotations from independent sources, generally pricing services. Mortgage loansat the aggregate unpaid balance less allowance for uncollectible amounts. The Company measures impaired loans based on the present value of expected future cash flows discounted at the loans effective interest rate or, estimated, at the loans observable market price or the fair value of the collateral, if the loan is collateral dependent. The Company had no impaired loans as of December 31, 2017 or December 31, 2016. Interest income on impaired loans would be recognized to the extent the borrower is currently paying interest according to their contractual obligation. Any future cash receipts will be identified as either reductions of principal or interest income depending on the facts and circumstances of the individual loans investment and the risk profile of the collateral. Real estate, including related improvementsat the depreciated historical cost or market if impaired. Depreciation is provided on a straight-line basis over 30 years, which is the estimated life of the properties. Accumulated depreciation for real estate as of December 31, 2017 and 2016 was approximately $20,900,000 and $36,100,000, respectively. Cost is adjusted for impairment whenever events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. Impaired real estate is written down to the estimated fair value with the impairment loss being included in realized losses. Impairment losses are based upon the estimated fair value of real estate, which is generally computed using the present value of expected future cash flows from the real estate discounted at a rate commensurate with the underlying risks. There were no impairments recognized in 2017, 2016 or 2015. In September 2016, the Company classified one property, Ohio State Life, as held for sale in the amount of $4,053,000 as part of the Companys investment real estate strategy. In December 2017, the propertys carrying value was $4,841,000. The expected disposal dates of the properties held for sale are within 12 months of the dates of classification. Contract loansat unpaid balances, not in excess of policy cash surrender value. Other invested assetsOn December 20, 2017, the Company purchased a surplus note of $100,000,000 issued by Farmers Insurance Exchange. The Insurance Commissioner of the State of California authorized the purchase with a maturity date of December 20, 2027. The note has an annual interest rate of 3.758% due semi-annually on June 20 and December 20. Commencing on December 20, 2022 the annual interest rate will be the floating annual rate equal to the Three-Month USD LIBOR plus 2.60%. On the fifth anniversary of this Surplus Note date and any Interest Payment Date thereafter, the Exchange may prepay the principal sum and any outstanding interest without penalty, with the approval of the Insurance Commissioner. If the principal sum or any remaining balance has not been repaid on or before the Maturity Date, then the interest rate shall be subject to revision taking into account the then-prevailing interest rates and upon approval by the Insurance Commissioner. Securities lending reinvested collateral assets-at cost or amortized cost. Short-term investmentsat cost or amortized cost.

Realized gains and losses on sales of investments, recognized in the statement of operations, are determined based on the sale price and carrying value of the specific security. The unrealized gains or losses on common stocks, hedge fund and options are accounted for as direct increases or decreases in statutory unassigned surplus, and have no effect on the statement of operations.

Changes in interest rates have a direct, inverse impact on the fair value of fixed income investments. It is reasonably possible that changes in interest rates will occur in the near term and could, as a result of such changes, have a material impact on the fair value of fixed income investments. If a decline in the fair value of an individual investment, except for loan-backed securities, is considered to be other-than-temporary, the difference between amortized book value or original cost and fair value is recorded as a realized investment loss. If the fair value of loan-backed securities declines below its amortized cost basis, the Company determines whether the decline is other-than-temporary. Loan-backed securities with evidence of deterioration of credit quality and for which it is probable that the Company will be unable to collect all contractually required payments receivable, are written down to the present value of cash flows expected to be received.

Investment Income Due and Accrued Investment income due and accrued with amounts over 90 days past due are nonadmitted. Nonadmitted investment income due and accrued as of December 31, 2017 and 2016 was $317,000 and $405,000, respectively.

Federal Income Taxes The Company has applied the NAIC Statement of Statutory Accounting Principles (SSAP) No. 101, Income Taxes. Income tax incurred is recognized by applying the enacted income tax law. Deferred income taxes are provided for temporary differences between the financial statement and tax bases of assets and liabilities at the end of each year based on enacted tax rates. Changes in admitted deferred income tax assets and liabilities are recognized as adjustments to surplus. Deferred tax assets are first subjected to a valuation allowance assessment and then are admitted to the extent they meet specific criteria but are limited to the amount of gross deferred tax assets expected to be reversed within a limited time period and are limited to a percentage of adjusted capital and surplus. The reversal and surplus limitation parameters in the admission tests are determined based on the risk-based capital levels.

The significant tax jurisdiction for the Company is U.S. federal tax. The tax years 2013 and prior for U.S. federal tax are closed to tax authority examinations. The Company records any potential net interest and penalties in the income tax expense component of the statement of operations. During 2017 and 2016, the Company did not accrue any interest and penalties related to income tax contingencies.

Leases The Company has a long-term lease commitment with options to renew at the end of the lease period. Operating lease payments are charged to the income statement in the period in which they are incurred. See Note 14 for additional information on lease commitments.

Death, Disability and Other Benefits Death and disability benefits represent the estimated ultimate net cost of all reported and unreported claims incurred through year end. Such estimates are based on projections applied to historical claim payment data.

Electronic Data Processing Equipment Depreciation on electronic data processing equipment, a non-admitted asset, is calculated using the straight-line basis over 3 years, this was a change as of July 2016 due to alignment with changes in policy from parent. Gross electronic data processing equipment, accumulated depreciation and net admitted assets of EDP for December 31, 2017 and 2016 are as follows:

(in thousands of dollars) 2017 2016 Change Gross EDP Equipment $287 $189 $ 98 Accumulated Depreciation (192) (144) (48 ) Net EDP 95 45 50 Non Admitted EDP (95 ) (45 ) (50 ) Net Admitted EDP $ $ $

Depreciation expense on electronic data processing equipment assets was $48,000, $22,000, and $48,000 for the year ended December 31, 2017, 2016 and 2015, respectively, and has been included in general insurance expenses.

Financial Instruments and Concentrations of Credit Risk The Companys financial instruments that are exposed to concentrations of credit risk consist primarily of cash, investments, and reinsurance receivables and payables.

The Company cedes insurance risk to various reinsurance companies rated A- or better by A.M. Best. The Companys management reviews the financial strength of its reinsurers at the inception of a reinsurance contract and periodically thereafter for the purpose of assessing the financial ability of the reinsurers to perform. Management believes that its reinsurers have the financial strength to perform on their financial obligations.

The Company places its cash with high credit quality institutions. At times, such amounts may be in excess of the FDIC insurance limits. Management believes that risk with respect to these balances is minimal, due to the high credit quality of the depositories.

The Company invests in high quality securities with no significant concentration of risk.

Accounting Changes and Corrections of Errors At December 31, 2016, the Company included a SSAP No. 3 Accounting Changes and Corrections of Errors adjustment in the amount of ($3,755,450), net of tax, to show the impact on prior years surplus of a decrease in its accrued policy loan income for the Variable Universal Life product.

At December 31, 2016, the Company included a SSAP No. 3 Accounting Changes and Corrections of Errors adjustment in the amount of ($3,150,718), net of tax, to show the impact on prior years surplus of an increase in its aggregate reserves for the Premier Term and Simple Term products waiver of premium benefit for both active and disabled life reserves.

At March 31, 2016, the Company changed its reporting of its real estate property cash, which had been included in the debit balance suspense accounts and nonadmitted on Other Assets. As the Company has been investing in additional investment real estate properties, this balance has been growing over time. Beginning with the March 31, 2016 Quarterly Statement, the Company has reclassed property cash in the amount of $9,435,634 to be included on Cash, Cash Equivalents, and Short-Term Investments.

At December 31, 2015, the Company included an SSAP No. 3 Accounting Changes and Corrections of Errors direct to surplus adjustment in the amount of ($1,341,000), net of tax, to write-off non-admitted capitalized leasing commissions, net of amortization, to comply with SSAP No. 22 Leases.

At December 31, 2015, the Company also included an SSAP No. 3 Accounting Changes and Corrections of Errors direct to surplus adjustment in the amount of ($279,000), net of tax, to show the impact on prior years surplus of a correction to the variable universal life reserves.

Change in Valuation Basis The changes in valuation basis for 2017 are outlined in the table below.

Increase in Actuarial Reserve Description of Valuation Class Changed From Changed to Due to Change LIFE CONTRACTS (Including supplementary contracts set upon a basis other than that used to determine benefits) (Exhibit 5) Exhibit 5B, SPIA and AIP - Mortality and Interest Updates 71 IAM F 3.50% 71 IAM F 4.50% 8,135 Exhibit 5B, SPIA and AIP - Mortality and Interest Updates 71 IAM F 3.50% 83a F 4.50% 10,364 Exhibit 5B, SPIA and AIP - Mortality and Interest Updates 71 IAM F 3.50% 71 IAM M 4.50% 17,676 Exhibit 5B, SPIA and AIP - Mortality and Interest Updates 71 IAM F 3.50% 83a M 4.50% 45,265 Exhibit 5B, Other Annuities in Payment - Mortality and Interest Updates a-1949 3.00% 83a M 4.50% 882 Exhibit 5C, SCILC - Mortality and Interest Updates a-1949 3.00% a-1949 3.50% (29 ) Exhibit 5C, SCILC - Mortality and Interest Updates a-1949 3.00% 71 IAM F 4.50% (11,412 ) Exhibit 5C, SCILC - Mortality and Interest Updates a-1949 3.00% 83a F 4.50% (1,126 ) Exhibit 5C, SCILC - Mortality and Interest Updates a-1949 3.00% a-2000 F 4.50% (39,764 ) Exhibit 5C, SCILC - Mortality and Interest Updates a-1949 3.00% 71 IAM M 4.50% (3,430 ) Exhibit 5C, SCILC - Mortality and Interest Updates a-1949 3.00% 83a M 4.50% (260 ) Exhibit 5C, SCILC - Mortality and Interest Updates a-1949 3.00% a-2000 M 4.50% (2,372 ) Exhibit 5C, Payor Death - Mortality and Interest Updates 58 CSO 3.50% a-1949 3.50% 327 Exhibit 5C, Payor Death - Mortality and Interest Updates 58 CSO 3.50% 58 CSO 3.50% (1,199 ) Exhibit 5C, Payor Death - Mortality and Interest Updates 58 CSO 3.50% 71 IAM F 3.50% 148 Exhibit 5C, Payor Death - Mortality and Interest Updates 58 CSO 3.50% 71 IAM F 4.50% 967 Exhibit 5C, Payor Death - Mortality and Interest Updates 58 CSO 3.50% 83a F 4.50% 1,385 Exhibit 5C, Payor Death - Mortality and Interest Updates 58 CSO 3.50% a-2000 F 4.50% 134 Exhibit 5C, Payor Death - Mortality and Interest Updates 58 CSO 3.50% a-2000 F 4.25% 590 Exhibit 5C, Payor Death - Mortality and Interest Updates 58 CSO 3.50% a-2000 F 4.50% 2,338 Exhibit 5C, Payor Death - Mortality and Interest Updates 58 CSO 3.50% 83a M 4.50% 18 Exhibit 5C, Payor Death - Mortality and Interest Updates 58 CSO 3.50% a-2000 M 4.00% 273 Exhibit 5C, Payor Death - Mortality and Interest Updates 58 CSO 3.50% a-2000 M 4.25% 686 Exhibit 5C, Payor Death - Mortality and Interest Updates 58 CSO 3.50% a-2000 M 4.50% 1,945 0199999 Subtotal (Line 6, Page 7) 31,541

There were no changes in reserve valuation bases in 2016.

Statements of Cash Flows For purposes of the statement of cash flows the following are included: cash, cash equivalents and short-term investments. Short-term investments consist principally of money market funds with remaining maturities at date of purchase of 12 months or less.

3. Investments The components of investment income by type of investment for the years ended December 31, 2017, 2016 and 2015 are as follows:

(in thousands of dollars) 2017 2016 2015 Bonds $146,661 $219,491 $232,583 Common stocks (unaffiliated) 87 2,546 2,718 Mortgage loans 22,281 21,222 14,708 Investment real estate 12,604 14,670 11,415 Contract loans 19,981 20,420 22,237 Short-term investments 732 200 42 Other 805 159 230 Gross investment income 203,151 278,708 283,933 Less: Investment expenses (16,509 ) (18,512 ) (18,771 ) Net investment income $186,642 $260,196 $265,162

Investment expenses included the following fees paid to the Companys various affiliated investment managers:

In 2017, 2016 and 2015, the Companys investment expense included fees of approximately $327,000, $321,000 and $313,000, respectively, to its Parent Company, FGI.

In 2017, 2016 and 2015, the Companys investment expenses included fees of approximately $649,000, $543,000 and $572,000, respectively, to Zurich Investment Services.

In 2017, 2016 and 2015, the Companys investment expenses included fees of approximately $2,002,000, $1,832,000 and $2,215,000, respectively, to Zurich Group Investments.

In 2017, 2016 and 2015, the Companys investment expenses included fees of approximately $390,000, $573,000 and $558,000, respectively, to Zurich Alternative Asset Management.

Realized Gains and Losses Realized gains and losses on sales, redemptions and impairments of investments are determined based on the actual cost of the securities. Realized investment gains and losses for the years ended December 31, 2017, 2016 and 2015 are as follows:

(in thousands of dollars) 2017 2016 2015 Bonds $173,062 $9,826 $8,623 Common stocks (unaffiliated) 15,137 1,829 (1,222) Common Stocks of affiliates 317 Short-term investments (4 ) (1 ) Investment real estate 14,648 8,525 Aggregate write-ins for capital gains 2,159 2,101 2,045 Other (178 ) 205,319 22,281 9,267 Transfer to interest maintenance reserve (112,957) (8,531 ) (5,476) Add: Tax expense on net realized gains (60,750 ) (2,208 ) (3,102) Net realized gains $31,612 $11,542 $690

Impairment losses included in realized gains and losses above, for the years ended December 31, 2017, 2016 and 2015 are as follows:

(in thousands of dollars) 2017 2016 2015 Bonds $ $(3,338) $ Common stocks (unaffiliated) (625 ) (1,737) $ $(3,963) $(1,737)

Unrealized Gains and Losses on Common Stock

(in thousands of dollars) Gains Losses Net 2017 Common stock Industrial and miscellaneous (unaffiliated) $ $(82 ) $(82 ) Total common stock $ $(82 ) $(82 ) 2016 Common stock Industrial and miscellaneous (unaffiliated) $14,415 $(207) $14,208 Total common stock $14,415 $(207) $14,208

Unrealized Gains and Losses on Bonds Amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of bonds as of December 31, 2017 and 2016 are as follows:

2017 Gross Gross Amortized Unrealized Unrealized Estimated (in thousands of dollars) Cost Gains Losses Fair Value Bonds U.S. governments $355,002 $4,206 $(5,070 ) $354,138 Non-U.S. governments 3,076 169 (1 ) 3,244 States, territories and possessions 5,196 1,637 6,833 Political subdivisions 18,976 5,701 24,677 Special revenues 63,085 18,777 81,862 Industrial and miscellaneous 1,878,826 154,886 (6,171 ) 2,027,541 Total bonds 2,324,161 185,376 (11,242) 2,498,295 Loan-backed securities 540,864 6,042 (7,371 ) 539,535 Total fixed maturities $2,865,025 $191,418 $(18,613) $3,037,830

2016 Gross Gross Amortized Unrealized Unrealized Estimated (in thousands of dollars) Cost Gains Losses Fair Value Bonds U.S. governments $409,182 $5,345 $(17,637) $396,890 Non-U.S. governments 13,930 657 (15 ) 14,572 States, territories and possessions 16,851 2,926 (176 ) 19,601 Political subdivisions 40,476 9,956 50,432 Special revenues 127,295 27,957 (102 ) 155,150 Industrial and miscellaneous 3,218,750 272,541 (20,857) 3,470,434 Hybrid securities 9,677 1,691 11,368 Total bonds 3,836,161 321,073 (38,787) 4,118,447 Loan-backed securities 1,149,511 21,241 (14,722) 1,156,030 Total fixed maturities $4,985,672 $342,314 $(53,509) $5,274,477

Unrealized Losses on Fixed Maturities and Equity Securities Estimated fair value and gross unrealized losses of fixed maturities and equity securities as of December 31, 2017 and 2016 were as follows:

2017 Unrealized Losses Unrealized Losses Less Than 12 Months 12 Months or Greater Estimated Unrealized Estimated Unrealized (in thousands of dollars) Fair Value Losses Fair Value Losses Fixed maturities Bonds U.S. governments $127,691 $(952 ) $118,343 $(4,118 ) Non-U.S. governments 724 (1 ) Industrial and miscellaneous 241,060 (2,175 ) 102,856 (3,996 ) Total bonds 368,751 (3,127 ) 221,923 (8,115 ) Loan-backed securities 99,685 (652 ) 194,782 (6,719 ) Total fixed maturities $468,436 $(3,779 ) $416,705 $(14,834) Equity securities Industrial and miscellaneous (unaffiliated) $3,226 $(82 ) $ $ Total equity securities $3,226 $(82 ) $ $

2016 Unrealized Losses Unrealized Losses Less Than 12 Months 12 Months or Greater Estimated Unrealized Estimated Unrealized (in thousands of dollars) Fair Value Losses Fair Value Losses Fixed maturities Bonds U.S. governments $281,559 $(17,637) $ $ Non-U.S. governments 5,633 (15 ) States, territories and possessions 5,179 (176 ) Special revenues 2,400 (102 ) Industrial and miscellaneous 633,894 (17,206) 65,214 (3,651 ) Total bonds 928,665 (35,136) 65,214 (3,651 ) Loan-backed securities 478,746 (14,021) 20,955 (701 ) Total fixed maturities $1,407,411 $(49,157) $86,169 $(4,352 ) Equity securities Industrial and miscellaneous (affiliated) $3,446 $(207 ) $ $ Total equity securities $3,446 $(207 ) $ $

As of December 31, 2017, fixed maturities represented 99.6% of the Companys total unrealized loss amount, which was comprised of 148 securities. The Company did not hold any fixed maturity securities that were in an unrealized loss position in excess of 20%.

Fixed maturities in an unrealized loss position for less than 12 months were comprised of 72 securities, of which 100%, or $468,436,000, were comprised of securities with fair value to amortized cost ratios at or greater than 95%. The majority of these securities are investment grade fixed maturities that have decreased in market values due to changes in interest rates since the date of purchase.

Fixed maturities in an unrealized loss position for 12 months or more as of December 31, 2017 were comprised of 75 securities, with a total fair value of approximately $416,704,000. The decline in market value for these securities is primarily attributable to changes in interest rates. A variety of data is reviewed, including the aging and severity of unrealized losses; watch lists distributed by the asset managers, deviations in market prices between months, and results of tests indicating if any bond holdings with unrealized losses have a credit rating below investment grade for 12 consecutive months. If a fixed maturity security, except for loan-backed securities, is deemed other-than-temporarily impaired, then the securitys book value basis is written down to current market value with the Company recognizing an impairment loss in current periods earnings.

Equity securities represented 0.4% of the Companys total unrealized loss amount, which is comprised of 2 securities.

Equity securities in an unrealized loss position for less than 12 months were comprised of 2 securities, with a total fair value of approximately $3,226,000. There were no equity securities in an unrealized loss position for 12 months or more.

Because the decline in market value is attributable to changes in interest rates and not credit quality and because the Company has the ability and intent to hold the fixed income investments until a recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired as of December 31, 2017.

Loan-Backed Securities There were no loan-backed securities impaired during 2017 due to intent to sell or inability or lack of intent to retain the security for a period of time sufficient to recover the amortized cost basis. Loan-backed securities with evidence of deterioration of credit quality for which it is probable that the Company will be unable to collect all contractually required payments receivable, are written down to the present value of expected cash flows to be received. In determining the impairments for loan-backed securities, a review of default rate, credit support and other key assumptions is made on the security level.

5* Securities A 5* security lacks full documentation to get a rating but filed a Principal and Interest Certification form with the SVO. NAIC 5* is assigned by the SVO to certain obligations when an insurer certifies: (1) that documentation necessary to permit a full credit analysis of a security does not exist and (2) the issuer or obligor is current on all contracted interest and principal payments and (3) the insurer has an actual expectation of ultimate repayment of all contracted interest and principal.

5* Securities for December 31, 2017 and 2016 are as follows:

December 31, 2017

Investment Number of 5* Securities Aggregate BACV Aggregate Fair Value (1) Bonds - AC 1 $ 8,749,622 $ 8,272,677 (7) Total (1+2+3+4+5+6) 1 $ 8,749,622 $ 8,272,677

December 31, 2016

Number of Aggregate Aggregate Investment 5* Securities BACV Fair Value (1) Bonds - AC $ $ (7) Total (1+2+3+4+5+6) $ $

Structured Notes A Structured Note is a direct debt issuance by a corporation, municipality, or government entity, ranking pari-passu with the issuers other debt issuance of equal seniority where either: The coupon and/or principal payments are linked, in whole or in part, to prices or payment streams from index or indices, or assets deriving their value from other than the issuers credit quality, or The coupon and/or principal payments are leveraged by a formula that is different from either a fixed coupon, or a non-leveraged floating rate coupon linked to an interest rate index, including but not limited to LIBOR or the prime rate.

Structured Notes for December 31, 2017 are as follows:

December 31, 2017

Mortgage- Referenced Book/Adjusted Security (Y/ CUSIPS Actual Cost Fair Value Carrying Value N) 039483BC5 $1,511,070 $1,947,285 $1,510,066 N 111021AE1 5,118,600 5,963,080 4,801,371 N 172967LM1 747,105 744,750 747,064 N 564759QB7 9,060,000 9,007,814 9,036,118 N Total $16,436,775 $17,662,929 $16,094,619

Subprime Mortgage Related Risk Exposure The Company has no direct exposure through investments in subprime mortgage loans.

Maturities of Bonds The amortized cost and estimated fair value of bonds and preferred stocks, by contractual maturity, at December 31, 2017 are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalty:

Amortized Estimated (in thousands of dollars) Cost Fair Value Due to 1 year or less $87,984 $88,532 Due after 1 year through 5 years 661,202 674,884 Due after 5 years through 10 years 591,541 603,484 Due after 10 years 983,434 1,131,395 2,324,161 2,498,296 Loan-backed securities 540,864 539,535 Total bonds $2,865,025 $3,037,831

Sales of Bonds and Common Stocks The gross gains, gross losses and proceeds from sales on bonds and common stocks for the years ended December 31, 2017, 2016 and 2015 are as follows:

Gross Gross (in thousands of dollars) Gains Losses Proceeds 2017 Bonds $192,989 $(19,973) $2,714,282 Common Stocks 15,399 (263 ) 69,906 $208,388 $(20,236) $2,784,188 2016 Bonds $17,398 $(4,532 ) $902,946 Common Stocks 7,696 (5,241 ) 100,682 $25,094 $(9,773 ) $1,003,628 2015 Bonds $10,955 $(3,928 ) $811,403 Common Stocks 3,366 (2,851 ) 33,582 $14,321 $(6,779 ) $844,985

Bonds with an amortized cost of approximately $4,175,000 and $3,893,000 were on deposit with regulatory authorities at December 31, 2017 and 2016, respectively, to satisfy regulatory requirements. The fair value of these securities was approximately $4,779,000 and $4,262,000 as of December 31, 2017 and 2016, respectively.

On July 11, 2003, the Company acquired a $15,000,000 Mount Rosa/Mount Evans bond at par. On February 13, 2009, the Company acquired a $75,000,000 par value Mount Rosa/Mount Evans bond from Fire Underwriters Association for $85,978,000. On January 17, 2014, approximately 13% of the bond was redeemed, reducing the par values down to $13,026,000 and $65,132,000. Mount Rosa/ Mount Evans is not an affiliated company; however, in these special purpose vehicle bonds, ZIC, an affiliated company, provided the underlying financial guarantee of interest, and American International Group, Inc., an unaffiliated company, provided the underlying guarantee of principal. The maturity date for these bonds is July 17, 2033. The Coupon rate for these bonds is 6.15% and interest is paid semi-annually. The Company earned approximately $4,810,000 of interest income in 2017, 2016 and 2015, respectively. Market values for these two bonds were approximately $17,772,000 and $88,859,000, respectively, as of December 31, 2017. Market values for these two bonds as of December 31, 2016 were approximately $17,479,000 and $87,394,000, respectively.

Commercial Mortgage Loans As of December 31, 2017, the Company owned 146 commercial mortgage loans, comprised of office, industrial, multifamily, hospitality, self-storage retail properties, senior living, and parking totaling $578,689,000. The Company did not have any impaired loans, any delinquent loan payments, or any interest rate reductions that were made during 2017. As of December 31, 2017, all mortgage loans were current with respect to payment of principal and interest and there were no amounts past due. The maximum and minimum lending rates were 4.73% and 3.00%, respectively. The maximum allowed percentage of any one loan to value (LTV) of a security at the origination date of the loan is 75%. There were no taxes, assessments or amounts advanced included in the mortgage loan investment. A quality rating analysis using the Prudential PGIM rating system is performed for all the mortgage loans on an ongoing basis throughout the year. The rating assigned is used for the balance of the fiscal year, unless a major change occurs with the property or the loan noted through ongoing analysis that merits a change of the quality rating assigned. The portfolio by quality and by property type for the years ended December 31, 2017 and 2016 was as follows:

Loan Quality Rating

(in thousands of dollars) 2017 # Principal % A+ 37 $171,047 29.6 % A 13 63,943 11.0 % A- 31 151,148 26.1 % B+ 55 121,340 21.0 % B 10 71,211 12.3 % TOTAL 146 578,689 100.0% Weighted Average Quality Rating is B+

Property Type

(in thousands of dollars) 2017 # Principal % Office 18 $173,423 30.0 % Multifamily 28 144,419 25.0 % Industrial 36 113,154 19.6 % Retail 19 113,875 19.7 % Hospitality 2 10,970 1.9 % Senior Living 39 9,878 1.7 % Self Storage 1 5,180 0.9 % Other 3 7,790 1.3 % Totals 146 578,689 100.0%

Loan Quality Rating

(in thousands of dollars) 2016 # Principal % A+ 22 $133,414 22.7% A 20 94,306 16.0% A- 33 174,266 29.6% B+ 16 79,196 13.5% B 30 85,451 14.5% B- 3 22,050 3.7 % TOTAL 124 $588,683 100 % Weighted Average Quality Rating is B+

Property Type

(in thousands of dollars) 2016 # Principal % Office 18 $175,147 29.8 % Multifamily 28 149,885 25.5 % Industrial 36 115,120 19.6 % Retail 19 115,150 19.6 % Hospitality 2 11,349 1.9 % Senior Living 17 8,760 1.5 % Self Storage 1 5,180 0.9 % Other 3 8,092 1.4 % Totals 124 $588,683 100.0%

The Companys mortgage loan portfolio had no significant concentrations of credit risk whether by individual or group. The statement value of mortgage loans by collateral property type and state of geographic location as of December 31, 2017 and 2016 was as follows:

(in thousands) December 31, 2017 Senior Living Multifamily Retail Industrial Other Hospitality Office Self-Storage Totals State AZ $ $6,556 $ $12,764 $ $ $ $ $19,320 CA 58,584 78,858 44,858 24,816 207,116 CO 725 12,495 940 14,160 CT 10,000 9,395 19,395 DC 57,182 57,182 FL 1,145 4,484 4,207 7,510 17,346 GA 7,805 7,805 ID 1,638 1,638 IL 529 529 KY 4,287 4,287 LA 995 995 MA 19,971 19,971 MD 675 2,820 8,276 11,771 MI 341 7,790 8,131 MN 1,813 1,813 MT 833 833 NJ 14,144 14,144 NV 992 992 NY 2,217 37,858 40,075

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document OH 8,790 8,790 OR 3,244 15,000 18,244 PA 5,186 9,601 2,791 17,578 SC 1,470 1,470 TN 3,986 2,010 5,996 TX 43,961 9,709 8,960 5,180 67,810 VA 6,220 929 7,149 WA 2,155 303 1,691 4,149 Totals $ 9,878 $144,419 $113,875 $113,154 $7,790 $10,970 $173,423 $ 5,180 $578,689

(in thousands) December 31, 2016

Senior Living Multifamily Retail Industrial Other Hospitality Office Self-Storage Totals State AZ $ $6,556 $ $12,981 $ $ $ $ $19,537 CA 57,256 79,322 45,917 25,459 207,953 CO 787 12,768 888 14,443 CT 10,000 9,598 19,598 DC 57,532 57,532 FL 1,396 4,621 4,207 7,510 17,733 GA 8,012 8,012 ID 1,615 1,615 IL 586 586 KY 3,964 3,964 LA 995 995 MA 20,000 20,000 MD 2,820 8,726 11,546 MI 8,092 8,092 MN 1,645 1,645 MT 815 815 NJ 14,533 14,533 NV 987 987 NY 2,258 38,118 40,376 OH 8,790 8,790 OR 3,202 15,000 18,202 PA 5,388 9,790 3,022 18,200 SC 1,470 1,470 TN 4,047 2,060 6,107 TX 49,850 9,938 9,289 5,180 74,256 VA 6,392 929 7,322 WA 2,141 304 1,930 4,375 Totals $ 8,760 $149,885 $115,150 $115,120 $8,092 $11,349 $175,147 $ 5,180 $588,683

LTV ratios are commonly used to assess the credit quality of commercial mortgage loans. A smaller LTV ratio generally indicates a higher quality loan. The statement value of mortgage loans by collateral type and LTV ratio as of December 31, 2017 and 2016 was as follows:

(in thousands) December 31, 2017

<51% 51%-70% 71%-90% Totals Hospitality $2,010 $8,960 $ $10,970 Multifamily 51,438 55,818 37,163 144,419 Office 66,050 97,374 9,999 173,423 Retail 25,507 88,368 113,875 Self-Storage 5,180 5,180 Industrial 7,554 104,177 1,423 113,154 Senior Living 9,878 9,878 Other 7,790 7,790 Totals $165,529 $354,697 $58,463 $578,689

(in thousands) December 31, 2016

<51% 51%-70% 71%-90% Totals Hospitality $2,060 $9,289 $ $11,349 Multifamily 30,930 104,937 14,018 149,885 Office 48,997 116,125 10,026 175,147 Retail 10,664 88,889 15,597 115,150 Self-Storage 5,180 5,180 Industrial 6,527 90,369 18,225 115,120 Senior Living 8,760 8,760 Other 8,092 8,092 Totals $112,449 $418,368 $57,866 $588,683

See Note 2 for additional information on accounting policy related to mortgage loans.

Restricted Assets As of December 31, 2017 and 2016, total restricted assets amounted to $14,853,000 and $9,298,000 respectively. Of these assets, bonds and short term investments on deposit were for state insurance departments to satisfy regulatory requirements, while reverse repurchase receivable represented collateral reinvestment from the security lending transactions.

(in thousands) December 31, 2017 Admitted Gross Restricted Total General Total Restricted to Total Account (G/ Total from Increase/ Admitted to Total Admitted Restricted Asset Category A) Total Prior Year (Decrease) Restricted Assets Assets Subject to reverse repurchase agreements $ 10,678 $10,678 $ 5,405 $ 5,273 $10,678 0.206 % 0.208 % On deposit with states regulatory bodies $ 4,175 $4,175 $ 3,893 $ 282 $4,175 0.080 % 0.081 % Total restricted assets $ 14,853 $14,853 $ 9,298 $ 5,555 $14,853 0.286 % 0.289 %

(in thousands) December 31, 2016 Admitted Total Current Gross Restricted Total General Year Restricted to Total Account (G/ Total from Increase/ Admitted to Total Admitted Restricted Asset Category A) Total Prior Year (Decrease) Restricted Assets Assets Subject to reverse repurchase agreements $ 5,405 $5,405 $ $ 5,405 $ 5,405 0.074 % 0.076 % On deposit with states regulatory bodies $ 3,893 $3,893 $ 3,859 $ 34 $ 3,893 0.054 % 0.054 % Total restricted assets $ 9,298 $9,298 $ 3,859 $ 5,439 $ 9,298 0.128 % 0.130 %

4. Statutory Investment Valuation Reserves The tables below present changes in the major elements of the AVR and the IMR:

(in thousands of dollars) AVR IMR Balances as of December 31, 2014 $49,724 $26,651 Realized investment gains (losses), net of tax 547 5,476 Amortization of investment gains (5,795 ) Unrealized investment gains (losses), net of deferred tax 845 Basic contribution 5,649 Reserve objective over accumulated balances at 20% (1,741 ) Adjustment down to Maximum/up to Zero (1,559 ) Balances as of December 31, 2015 53,465 26,332 Realized investment gains (losses), net of tax 5,951 8,531 Amortization of investment gains (6,512 ) Unrealized investment gains (losses), net of deferred tax 2,976 Basic contribution 6,650 Reserve objective over accumulated balances at 20% (5,325 ) Adjustment down to Maximum/up to Zero (12,648) Balances as of December 31, 2016 51,069 28,351 Realized investment gains (losses), net of tax 20,501 112,957 Adjustment for current years liability gains/(losses) released from the reserve (120,143) Amortization of investment gains (5,806 ) Unrealized investment gains (losses), net of deferred tax (11,289) Basic contribution 5,371 Reserve objective over accumulated balances at 20% (7,381 ) Adjustment down to Maximum/up to Zero (21,960) Balances as of December 31, 2017 $36,311 $15,359

The AVR requires reserves for default risk on bonds, common stocks, mortgage loans on real estate and other investments. The IMR is designed to capture the realized gains and losses which result from changes in the overall level of interest rates and amortize such into income over the approximate remaining life of the investments sold. Changes in the AVR have been applied directly to unassigned surplus. Investment gains and losses, net of tax, added to the IMR are amortized to income over the remaining life of the investments sold.

5. Fair Value of Financial Instruments Included in various investment related line items in the financial statements are certain financial instruments carried at fair value on a recurring basis. Other financial instruments are periodically measured at fair value, such as when impaired, or, for certain bonds when carried at the lower of cost or market.

The Companys financial assets and liabilities carried at fair value have been classified, for disclosure purposes, based on a hierarchy defined by SSAP No. 100. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An assets or liabilitys classification is based on the lowest level input that is significant to its measurement. For example, a Level 3 fair value measurement may include inputs that are both observable (Levels 1 and 2) and unobservable (Level 3).

The levels of the fair value hierarchy are as follows:

Level 1 Fair value measurements based on observable inputs that reflect quoted prices for identical assets or liabilities in active markets that the company has the ability to access at the measurement date. Level 1 securities include money market, exchange traded equity and derivative securities. Level 2 Fair value measurements based on quoted prices in markets that are not active or significant inputs that are observable either directly or indirectly. Level 2 inputs include the following: a. Quoted prices for similar assets or liabilities in active markets; b. Quoted prices for identical or similar assets or liabilities in non-active markets; c. Inputs other than quoted market prices that are observable; d. Inputs that are derived principally from or corroborated by observable market data through correlation or other means. Level 3 Fair value measurements based on valuation techniques that require significant inputs that are both unobservable and significant to the overall fair value measurement. These measurements include circumstances in which there is little, if any, market activity for the asset or liability and reflect managements own judgments about the assumptions a market participant would use in pricing the asset or liability.

There were no revisions to the Companys fair value level classifications policy for 2017 or 2016.

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table provides information as of December 31, 2017 and 2016 about the Companys financial assets and liabilities measured at fair value:

2017 (in thousands of dollars) Level 1 Level 2 Level 3 Total Assets at fair value Common Stocks $1,006 $ $2,220 $3,226 Separate account assets 806,798 806,798 Total assets at fair value $807,804 $ $2,220 $810,024 Separate account liabilities $ $806,798 $ $806,798 Total liabilities at fair value $ $806,798 $ $806,798

2016 (in thousands of dollars) Level 1 Level 2 Level 3 Total Assets at fair value Common Stocks $67,197 $ $ $67,197 Separate account assets 676,681 676,681 Total assets at fair value $743,878 $ $ $743,878 Liabilities Separate account liabilities $ $676,681 $ $676,681 Total liabilities at fair value $ $676,681 $ $676,681

There were no transfers between Levels 1 and 2 for the years ended December 31, 2017 and 2016.

Level 1 Financial Assets Common Stocks Common stock assets in Level 1 include securities that are actively traded and valued through obtained quotations from independent sources.

Separate Account Assets Fair values and changes in the fair values of separate account assets generally accrue directly to the contract holders and are not included in the Companys revenues and expenses or surplus.

Separate account assets in Level 1 include actively-traded institutional and retail mutual fund investments valued by the respective mutual fund companies.

Level 2 Financial Liabilities Separate Account Liabilities Fair values and changes in the fair values of separate account liabilities accrue directly to the Companys obligation to return the separate account assets to the contract holders and are not included in the Companys revenues and expenses or surplus. Separate account liabilities are considered Level 2 as there is no ready market for these liabilities.

Level 3 Financial Assets Common Stocks The amount in Level 3 for Common stocks represents equity warrants in a single entity. There is little, if any, market activity for these equity warrants. Fair Value of these warrants is provided by the third party asset manager.

Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis The following tables summarize the changes in assets classified as Level 3 for the years ended December 31, 2017 and 2016. Gains and losses reported in this table may include changes in fair value that are attributable to both observable and unobservable inputs.

Gains Balance at Gains (Losses) (Losses) Balance at January 1, Included in Included in December 31, (in thousands of dollars) 2017 Surplus Net Income Purchases 2017 Assets Common Stock $ $ (57 ) $ $2,276 $ 2,219

Policy on Transfers In and Out of Level 3 At the end of each reporting period, the Company evaluates whether or not any event has occurred or circumstances have changed that would cause an investment to be transferred in or out of Level 3. There were no transfers in or out of Level 3 in 2017 and 2016.

Fair Values of Financial Instruments and its Level within the Fair Value Hierarchy The following tables provide information as of December 31, 2017 and 2016 about the fair values of the Companys financial instruments and their levels within the fair value hierarchy.

(in thousands of dollars) December 31, 2017 Aggregate Statement Type of Financial Instrument Fair Value Value Level 1 Level 2 Level 3 Assets at Fair Value Bonds $3,037,831 $2,865,025 $ $2,998,920 $38,911 Common stocks 3,226 3,226 1,006 2,219 Mortgage loans on real estate 582,748 578,689 582,748 Contract loans 405,680 283,721 405,680 Cash, cash equivalents and short-term investments 69,193 69,193 69,193 Surplus Debentures - Affiliated 100,000 100,000 100,000 Accrued investment income 38,093 38,093 38,093 Receivable for securities 3,535 3,535 3,535 Securities lending - reinvested collateral 10,678 10,678 10,678 Separate accounts 806,798 806,798 806,798 Total assets at fair value $5,057,782 $4,758,958 $929,303 $2,998,920 $1,129,558 Liabilities at Fair Value Deferred annuities $1,456,736 $1,464,416 $ $1,456,736 $ Separate accounts 806,798 806,798 806,798 Payable for Securities 2,100 2,100 2,100 Securities lending collateral liability 10,678 10,678 10,678 Total liabilities at fair value $2,276,312 $2,283,992 $12,778 $2,263,534 $

(in thousands of dollars) December 31, 2016 Aggregate Statement Type of Financial Instrument Fair Value Value Level 1 Level 2 Level 3 Assets at Fair Value Bonds $5,274,477 $4,985,672 $ $5,170,975 $103,502 Common stocks 67,198 67,198 67,198 Mortgage loans on real estate 590,279 588,683 590,279 Contract loans 410,279 284,183 410,279 Cash, cash equivalents and short-term investments 106,233 106,234 100,291 5,942 Accrued investment income 61,038 61,038 61,038 Receivable for securities 2,746 2,746 2,746 Securities lending - reinvested collateral 5,405 5,405 5,405 Separate accounts 676,681 676,681 676,681 Total assets at fair value $7,194,336 $6,777,840 $913,359 $5,176,917 $1,104,060 Liabilities at Fair Value Deferred annuities $1,495,065 $1,506,328 $ $1,495,065 $ Separate accounts 676,681 676,681 676,681 Payable for Securities 8,778 8,778 8,778 Securities lending collateral liability 5,405 5,405 5,405 Total liabilities at fair value $2,185,929 $2,197,192 $14,183 $2,171,746 $

The following methods and assumptions were used to estimate the fair value of financial instruments as of December 31, 2017 and 2016:

Bonds The estimated fair values of bonds are valued using quoted market prices from third party sources, primarily Bloomberg and IDC. If quotes from these sources were not available, a broker dealer estimate was used. Unless representative trades of securities actually occurred at year end, these quotes are generally estimates of market value based on an evaluation of appropriate factors such as trading in similar securities, yields, credit quality, coupon rate, maturity, type of issues and other market data. Mount Rosa bond, which is a level 3 security, is valued using the present value of expected future cash flows discounted at the interpolated rates at payment date of the cash flows. Major inputs include yield curves, yields, and expected future cash flows.

Unaffiliated Common Stocks The fair values for unaffiliated common stocks are based on quoted market prices from third party sources, primarily Bloomberg and IDC.

Mortgage Loans on Real Estate The estimated fair value of the mortgage loans is determined by discounting the scheduled cash flows using quality ratings, current interest rates and spreads. The quality ratings, which are based on the PGIM proprietary rating system, reflect Prudentials assessment of the loans level of potential risk and are used to set interest rate spreads over Treasury securities with comparable average lives. Spreads are derived from a combination of observable market data, along with competitive loan pricing feedback and other real estate market information.

Contract Loans The carrying value of contract loans is the unpaid loan balance not in excess of policy cash surrender values. The estimated fair value of contract loans is based upon the present value of the future cash flows discounted at a mid-market swap rate. The excess of fair value over carrying value is due to interest rates on contract loans (some as high as 8%) being much higher than interest rates available in the current persistent low interest rate environment.

Receivables/Payables for Securities The fair value for receivables/payables for securities are based on quoted market prices from third party sources, primarily Bloomberg and IDC.

Cash, Cash Equivalents and Short-Term Investments The costs of these items are a reasonable estimate of their fair value. The estimated fair value of money market mutual funds are valued using NAV.

Accrued Investment Income The cost of accrued investment income approximates fair value unless otherwise noted.

Securities Lending The costs of these items are a reasonable estimate of their fair value due to the nature of the reinvested assets. The securities lending collateral asset represents the reinvestment of unrestricted cash collateral received from borrowers of the Companys securities. The securities lending liability represents the obligation to return the cash collateral received to those borrowers.

Separate Accounts The separate accounts assets are carried at fair value based on the reported net asset value (NAV) per share of the respective portfolios at December 31, 2017 and 2016. Accumulation values are computed daily based on the change in fair market value of the NAV of the subaccount less mortality and expense risk charges for the subaccount. The carrying amounts of the separate accounts liabilities are a reasonable estimate of their fair value.

Deferred Annuities The estimated fair values are based on the currently available cash surrender value, similar to the demand deposit liabilities of depository institutions.

Surplus Debentures Affiliated The estimated fair value of Surplus Debentures uses the income approach by converting future cash flows to a single present discounted amount. The discount rates used reflect the return a market participant would expect to receive on instruments with similar remaining maturity, cash flow pattern, and credit risk.

6. Related Parties The Company is a subsidiary of FGI, an insurance holding company domiciled in the state of Nevada. As the Parent Company, FGI performs legal, investment, and marketing services on behalf of the Company. Fees for these services are determined by using various cost allocation methods.

FGI has an agreement with the Company to provide sales and marketing, human resource, information technology, real estate, tax, payroll, investments, purchasing, warehousing, corporate legal and other services. Fees charged to the Company by FGI were approximately $39,113,000, $41,963,000 and $44,113,000 for the years ended December 31, 2017, 2016 and 2015, respectively, and are expensed as incurred.

The Exchanges have an agreement with the Company to provide distribution and other services. Fees charged to the Company by the Exchanges were approximately $24,059,000, $23,808,000 and $26,198,000 for the years ended December 31, 2017, 2016 and 2015, respectively, and are expensed as incurred.

MI Administrators, LLC is a wholly owned subsidiary of Farmers Insurance Group Leasing and was formed on September 24, 2008 under the laws of the State of Delaware. MI Administrators serves as a paymaster entity for the Company and affiliate entities and facilitates cash settlement of related party transactions in accordance with the State of Washingtons business and occupation regulations.

The Company has a service agreement with its affiliate, Zurich American Life Insurance Company (ZALICO), for the Company to perform administrative services reasonably necessary in the ordinary course of business, including but not limited to data processing, financial services, investment services, and certain other services as deemed necessary. Fees charged by the Company to ZALICO were approximately $1,129,000, $5,790,000 and $3,057,000 for the years ended December 31, 2017, 2016 and 2015 respectively and are expensed as incurred.

The Company had a service agreement with an affiliate, Universal Underwriters Life Insurance Company (UULIC), for the Company to perform certain financial services, reporting services and other services such as internal recordkeeping and general office administration. Fees charged by the Company to UULIC were approximately $871,000 for the year ended December 31, 2015 and were expensed as incurred. As of September 2016 UULIC was merged with ZALICO.

As part of a tax sharing agreement with FGI, FNWL remitted a net payment of $58,100,000 and $66,552,000 for the years ended December 31, 2017 and 2016 respectively. The current year prepayment was $66,500,000 and $76,000,000 for December 31, 2017 and 2016 respectively.

For information on investment fees paid to affiliates or affiliated investments, please refer to Note 3.

For information related to dividends paid to FGI, please refer to note 9.

For the period ended December 31, 2017 and 2016, the Company reported the following amounts due from or to related parties, excluding reinsurance related balances: (Please refer to Note 8 for reinsurance related balances.)

(in thousands of dollars) 2017 2016 Receivables from related parties ZALICO $ $560 Total receivables from related parties 560 Payables to related parties FGI (8,277 ) (8,271 ) Farmers Insurance Exchange (2,429 ) (2,508 ) ZALICO (1,026 ) Farmers Financial Services (1 ) (11 ) Farmers Insurance Group Leasing (7 ) (9 ) Total payables to related parties (11,740) (10,799) Net payables to related parties $(11,740) $(10,239)

7. Security Lending Arrangement The Company has entered into a security lending agreement with a lending agent. The agreement authorizes the agent to lend securities held in the Companys portfolio to a list of authorized borrowers. Concurrent with delivery of the securities, the borrower provides the Company with collateral equal to at least 102% of the market value of the loaned securities. The cash collateral is unrestricted.

The securities are marked-to-market on a daily basis, and the collateral is adjusted on the next business day. The cash collateral is reinvested in overnight repurchases, backed by US governmental and agency securities equal to at least 102% of the cash, which cannot be re-pledged. Income earned from the security lending arrangement is shared 25% and 75% between the agent and the Company, respectively. Income earned by the Company was approximately $114,000, $125,000 and $77,000 in 2017, 2016 and 2015, respectively.

The Companys securities on loan as of December 31, 2017 consisted of corporate fixed income, mortgage backed securities and U.S. treasury securities that had an estimated fair value of approximately $119,224,000. Comparatively, as of December 31, 2016, securities on loan consisted of corporate fixed income securities, mortgage backed securities and U.S. treasury securities that had an estimated fair value of approximately $105,616,000. The collateral as of December 31, 2017 had an estimated fair value of approximately $121,628,000 which was comprised of cash of $10,678,000 and government securities of $110,950,000. The collateral as of December 31, 2016 had an estimated fair value of approximately $107,836,000 which was comprised of cash of $5,405,000 and government securities of $102,431,000. The non-cash securities received as collateral are restricted and cannot be re-pledged and are, therefore, not reported in the Companys balance sheet, nor is the related obligation to return the restricted collateral.

The aggregate amount of the reinvested cash collateral is broken down by type of program and maturity date below:

Securities lending:

(in thousands of dollars) Aggregate Cash Collateral Received December 31, 2017 December 31, 2016 Fair Value Fair Value Open $ 10,678 $ 5,405 30 Days or Less 31 to 60 Days 61 to 90 Days 91 to 120 Days 121 to 180 Days 181 to 365 Days 1 to 2 Years 2 to 3 Years Greater Than 3 Years Total Collateral Received $ 10,678 $ 5,405

(in thousands of dollars) Aggregate Cash Collateral Reinvested December 31, 2017 December 31, 2016 Amortized Fair Amortized Fair Cost Value Cost Value Open $ $ $ $ 30 Days or Less 10,678 10,678 5,405 5,405 31 to 60 Days 61 to 90 Days 91 to 120 Days 121 to 180 Days 181 to 365 Days 1 to 2 Years 2 to 3 Years Greater Than 3 Years Total Collateral Reinvested $10,678 $10,678 $5,405 $5,405 Collatteral Received $10,899 $10,899 $5,522 $5,522

Dollar repurchase agreement: None

Repurchase Agreements Transactions Accounted for as Secured Borrowing: None

Reverse Repurchase Agreements Transactions Accounted for as Secured Borrowing: a. The company allows for reverse repo transactions. Securities Lenders may take risks to earn extra spread between income from investment of collateral and rebates paid to the securities borrowers. Therefore, cash collateral can only be reinvested based on tight guidelines. b. As of December 31, 2017 and December 31, 2016 all outstanding repurchase agreements were Tri-Party trades.

c. Original (Flow) & Residual Maturity: Original (Flow) & Residual Maturity

December 31, 2017 AVERAGE DAILY ENDING MINIMUM MAXIMUM BALANCE BALANCE a. Open - No Maturity $ $ $ $ b. Overnight 43,789,983 16,265,121 10,678,000 c. 2 Days to 1 Week d. > 1 Week to 1 Month e. > 1 Month to 3 Months f. > 3 Months to 1 Year g. > 1 Year

Original (Flow) & Residual Maturity

December 31, 2016 AVERAGE DAILY ENDING MINIMUM MAXIMUM BALANCE BALANCE a. Open - No Maturity $ $ $ $ b. Overnight 5,405,174 22,453,719 13,039,461 5,405,174 c. 2 Days to 1 Week d. > 1 Week to 1 Month e. > 1 Month to 3 Months f. > 3 Months to 1 Year g. > 1 Year

d. As of December 31, 2017 and December 31, 2016 there were no securities sold or acquired that resulted in default.

e. Fair Value of Securities Acquired Under Repo:

December 31, 2017 AVERAGE DAILY ENDING MINIMUM MAXIMUM BALANCE BALANCE $ $44,658,380 $16,600,743 $10,899,005

December 31, 2016 AVERAGE DAILY ENDING MINIMUM MAXIMUM BALANCE BALANCE $ 5,521,869 $22,906,229 $13,308,035 $5,521,869

f. Securities Acquired Under Repo by NAIC Designation: Securities Acquired Under Repo - by NAIC Designation

December 31, 2017 DOES NOT QUALIFY AS NONE NAIC 1 NAIC 2 NAIC 3 NAIC 4 NAIC 5 NAIC 6 ADMITTED a. Bonds - FV $ $10,899,005 $ $ $ $ $ $ b. LB & SS - FV c. Preferred Stock - FV d. Common Stock e. Mortgage Loans - FV f. Real Estate - FV g. Derivatives - FV h. Other Invested Assets - FV i. Total Assets - FV $ $10,899,005 $ $ $ $ $ $

December 31, 2016 DOES NOT QUALIFY AS NONE NAIC 1 NAIC 2 NAIC 3 NAIC 4 NAIC 5 NAIC 6 ADMITTED a. Bonds - FV $ $5,521,869 $ $ $ $ $ $ b. LB & SS - FV c. Preferred Stock - FV d. Common Stock e. Mortgage Loans - FV f. Real Estate - FV g. Derivatives - FV h. Other Invested Assets - FV i. Total Assets - FV $ $5,521,869 $ $ $ $ $ $

g. Collateral Received:

December 31, 2017 AVERAGE DAILY ENDING MINIMUM MAXIMUM BALANCE BALANCE a. Cash $ $ $ $ b. Securities (FV) 44,658,380 16,600,743 10,899,005 c. Securities (BACV) d. Nonadmitted Subset (BACV)

December 31, 2016 AVERAGE DAILY ENDING MINIMUM MAXIMUM BALANCE BALANCE a. Cash $ $ $ $ b. Securities (FV) 5,521,869 22,906,229 13,308,035 5,521,869 c. Securities (BACV) d. Nonadmitted Subset (BACV) h. Allocation of Aggregate Collateral by Remaining Contractual Maturity:

Allocation of Aggregate Collateral by Remaining Contractual Maturity

December 31, 2017 Amortized Cost Fair Value a. Overnight and Continuous $10,899,005 $10,899,005 b. 30 Days or Less c. 31 to 90 Days d. > 90 Days

December 31, 2016 Amortized Cost Fair Value a. Overnight and Continuous $5,521,869 $5,521,869 b. 30 Days or Less c. 31 to 90 Days d. > 90 Days

i. Recognized Receivable for Return of Collateral:

December 31, 2017 AVERAGE DAILY ENDING MINIMUM MAXIMUM BALANCE BALANCE a. Cash $ $ $ $ b. Securities (FV) 43,789,983 16,265,121 10,678,000

December 31, 2016 AVERAGE DAILY ENDING MINIMUM MAXIMUM BALANCE BALANCE a. Cash $ $ $ $ b. Securities (FV) 5,405,174 22,453,719 13,039,461 5,405,174

j. As of December 31, 2017 and December 31, 2016 there was no liability recognized to return cash collateral.

Repurchase Agreements Transactions Accounted for as a Sale: None

Reverse Repurchase Agreements Transactions Accounted for as a Sale: None

8. Reinsurance The Company assumes business from and cedes business to reinsurers to share risks under certain term, whole life, universal life and annuity policies for the purpose of reducing exposure to large losses.

Reinsurance ceded contracts do not relieve the Company from its obligations to policyholders. The Company remains liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet its obligations for reinsurance ceded to it under the reinsurance agreements. Failure of the reinsurers to honor their obligations could result in losses to the Company. Provisions are established for amounts deemed or estimated to be uncollectible. As of December 31, 2017 and 2016, no amounts have been recorded in relation to uncollectible reinsurance balances. To minimize its exposure to significant losses from reinsurance insolvencies, the Company uses several reinsurers, evaluates the financial condition of its reinsurers and monitors the concentration of credit risk arising from similar characteristics of the reinsurers.

The Company has established retention limits for new policy issuances. The maximum retention on new issues is $2,000,000 per life for all policies. The excess risk is reinsured with an affiliated reinsurer, ZIC, and other unaffiliated reinsurers.

Beginning January 1, 2010, the Company cedes to its affiliate, ZIC, 50% of contractual risk for new issues of its critical illness rider and a portion of business that is ceded through reinsurance pools. Effective January 1, 2012, new business previously ceded to Leschi, a wholly owned subsidiary,

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Farmers New World Life Insurance Company (A wholly owned subsidiary of Farmers Group, Inc.) Notes to Statutory Financial Statements For The Years Ended December 31, 2017, 2016 and 2015 was ceded to ZIC. Effective October 1, 2013, the Company recaptured the Level Term business reinsured with Leschi and simultaneously reinsured the recaptured in force block with ZIC. Effective January 1, 2015, the Company cedes to ZIC 75% of its contractual risk for new issues of certain term insurance policies subject to simplified underwriting. Effective December 1, 2015, the Company cedes to ZIC 100% of its contractual risk for new and in-force issues of its indexed universal life product. Premiums ceded to ZIC approximated $276,998,000, $241,779,000 and $206,183,000 for the years ended December 31, 2017, 2016, and 2015, respectively. Claims ceded to ZIC were approximately $80,897,000, $58,389,000 and $49,206,000 for the years ended December 31, 2017, 2016 and 2015, respectively. Changes in reserves ceded to ZIC were approximately $138,166,000, $138,730,000 and $124,378,000 for the years ended December 31, 2017, 2016 and 2015, respectively.

Premiums assumed from unaffiliated companies approximated $234,000, $9,949,000 and $19,274,000 for the years ended December 31, 2017, 2016 and 2015, respectively. Premiums ceded to unaffiliated companies approximated $2,487,097,000, $184,184,000 and $187,870,000 for the years ended December 31, 2017, 2016 and 2015, respectively. Claims paid to unaffiliated companies on assumed reinsurance were approximately $157,000, $13,865,000 and $18,729,000 for the years ended December 31, 2017, 2016 and 2015, respectively. Claims ceded to unaffiliated companies were approximately $139,785,000, $140,275,000 and $129,721,000 for the years ended December 31, 2017, 2016 and 2015, respectively. Changes in reserves assumed from unaffiliated companies were approximately ($644,000), ($515,000), and ($185,000) for the years ended December 31, 2017, 2016 and 2015, respectively. Changes in reserves ceded to unaffiliated companies were approximately $2,054,428,000, $11,853,000 and $23,308,000 for the years ended December 31, 2017, 2016 and 2015, respectively.

The estimated amounts of aggregate reduction in surplus due to termination of all reinsurance agreements by either party as of December 31, 2017 and 2016 would be approximately $22,185,000 and $30,541,000, respectively.

Per the requirements of Actuarial Guideline XLVIII for Companies that have Covered Policies Requiring the Analysis Pursuant to this Actuarial Guideline, the appointed actuary has performed an analysis, as to each reinsurance arrangement under which Covered Policies have been ceded, of the security supporting the Covered Policies and states that funds consisting of Primary Security in an amount at least equal to the Required Level of Primary Security are held by or on behalf of the Company in Trust.

There were three products issued by the Company in 2015 that were ceded to an unauthorized reinsurance and are thus subject to the requirements applied by Actuarial Guideline 48. Two of these products are XXX business Farmers Value Term and Simple Term and one is AXXX business Farmers Indexed Universal Life.

As of December 31, 2017, per section 4a of Actuarial Guideline 48, the Required Level of Primary Security for each of these three products was equal to the Ceded Statutory Reserves given in the table below. As of December 31, 2017, there were $156.4 million of Primary Security assets held in Trust on behalf of the Company.

Required Level of Primary Security ($000,000) as of 12/31/2017 Farmers Farmers Indexed Simple Term Value Term Universal Life Total 0.32 3.23 18.66 22.22

On May 17th, 2017, with an effective date of April 1, 2017, the Company completed a reinsurance agreement with the Reinsurance Group of America, Incorporated for the Companys Deferred Annuity, Structured Settlement and Variable Annuity blocks of business. The Deferred Annuity, Structured Settlement and general account of the Variable Annuity blocks were reinsured on a coinsurance basis, while the separate account of the Variable Annuity block was reinsured on a modified coinsurance basis. The company ceded approximately $2,280,901,000 in assets were transferred and recorded as premium, $2,107,981,000 in statutory reserves were transferred through the reinsurance transaction. An initial ceding commission of $23,446,000 was paid from RGA to the Company at inception of the transaction. The total transaction costs were $2,328,000.

9. Surplus and Restrictions Statutory surplus of approximately $468,858,000 and $527,702,000 as of December 31, 2017 and 2016, respectively, is the amount held for the benefit of the stockholder. The entire amount in 2017 and 2016 is designated as stockholders surplus for tax purposes and would not subject the Company to taxation if paid as a cash dividend.

The amount of dividends that can be paid by the Company to its stockholder without prior approval (or non-disapproval) of the OIC is limited to the lesser of: (i) 10% of its statutory earned surplus or (ii) the statutory net income before realized gains and losses from the preceding calendar year. Earned surplus consists of funds derived from any realized net profits, and does not include unrealized capital gains or re-evaluation of assets. A dividend paid that does not meet the above specifications is defined as an extraordinary dividend and requires advance approval from the OIC. The maximum dividend payouts that could be made without prior approval of the OIC for the years 2018 and 2017 are $46,886,000 and $52,770,000, respectively. Dividends are determined by the board of directors.

On May 23, 2017, the Company declared an extraordinary dividend in the amount of $46,000,000 that was paid to FGI on June 21, 2017 with the non-disapproval of the Washington Office of the Insurance Commissioner. On August 23, 2017, the Company declared an extra-ordinary dividend in the amount of $50,000,000 that was paid to FGI on September 22, 2017 with the non-disapproval of the Washington Office of Insurance Commissioner. On December 4, 2017 the company declared an extraordinary dividend in the amount of $83,000,000 that was paid to FGI on December 28, 2017 with the non-disapproval of the Washington Office of Insurance Commissioner. All distributions were considered extraordinary due to the rolling twelve month limitation on dividend distributions.

10. Employees Retirement Plans Prior to January 1, 2009, FGI sponsored a qualified, noncontributory defined benefit pension plan where benefits were based on years of service and the employees compensation during the last five years of employment. Effective January 1, 2009 the Company transitioned to a Cash Balance Program. Under the Cash Balance Program, FGI makes regular contributions to the employees account. The amount of these contributions is based on a percentage of an employee base pay and will vary depending on an employees age and length of service. However, vested employees.

FGI announced on October 20, 2016 that it would freeze all pension plan benefits (final average earnings and cash balance formulas) effective December 31, 2018. This will impact all Farmers employees that may be eligible for pension benefits. The impacted employees, however, will keep all benefits accrued through December 31, 2018, but will no longer be accruing benefits after that date. As part of this change, starting January 1, 2019, FGI will contribute an additional 4% of eligible pay to employees 401K Savings Plan as explained in note 11.

In addition, the Company provides post-retirement benefits to retired employees through a plan also sponsored by FGI. The Company has no legal obligation for benefits under these plans. FGI charges the Company an allocated share of such contributions based on characteristics of the population of plan participants.

The expenses allocated for pension and post-retirement benefit costs were approximately $14,153,000, $10,183,000 and $10,171,000 for the years 2017, 2016 and 2015, respectively. Pension plan and post-retirement plan assets and liabilities are carried by FGI.

11. Employees Incentive Plans Prior to January 1, 2009, FGI and its subsidiaries had two profit sharing plans providing for cash payments to all eligible employees, the Cash Profit Sharing Plan and Deferred Profit Sharing Plan. Effective January 1, 2009 the Company transitioned from the two profit sharing plans to a 401K Savings Plan and the Short-Term Incentive Plan (STIP) award program.

The 401K Savings Plan includes a dollar-for-dollar Company match up to 6% of employees earned base pay. Effective January 1, 2019, FGI will contribute an additional 4% of eligible pay to employees 401K Savings Plan, regardless of contribution. All employees, including new hires, are vested in the 401K Savings Plan immediately.

The STIP program has two drivers. The award pool funding is determined by the Company meeting predetermined business performance metrics each year. Secondly, the pool is distributed based on annual individual performance ratings. The majority of Farmers employees participate in the STIP award program. Up to 85% of the award can be deferred into the Companys 401K Savings Plan.

The Companys share of expenses for the STIP award program for the years ended December 31, 2017, 2016 and 2015 was approximately $5,923,000, $7,452,000 and $7,110,000, respectively. Additionally, the Companys contributions to the 401K Savings Plan totaled $2,286,000, $2,507,000 and $2,342,000 for the years ended December 31, 2017, 2016, and 2015, respectively.

12. Federal Income Taxes The components of the Companys net deferred tax asset (DTA) / deferred tax liability (DTL) as of December 31, 2017 and 2016 are as follows:

2017 (in thousands of dollars) Ordinary Capital Total Gross deferred tax assets $124,207 $4,841 $129,048 Statutory valuation allowance adjustment Adjusted gross deferred tax assets 124,207 4,841 129,048 Deferred tax assets nonadmitted (49,975 ) (49,975 ) Subtotal net admitted deferred tax assets 74,232 4,841 79,073 Deferred tax liabilities (23,968 ) (23,968 ) Net admitted deferred tax asset $50,264 $4,841 $55,105

2016 (in thousands of dollars) Ordinary Capital Total Gross deferred tax assets $218,155 $17,750 $235,905 Statutory valuation allowance adjustment Adjusted gross deferred tax assets 218,155 17,750 235,905 Deferred tax assets nonadmitted (82,168 ) (82,168 ) Subtotal net admitted deferred tax assets 135,987 17,750 153,737 Deferred tax liabilities (44,893 ) (5,056 ) (49,949 ) Net admitted deferred tax asset $91,094 $12,694 $103,788

Change (in thousands of dollars) Ordinary Capital Total Gross deferred tax assets $(93,948) $(12,909) $(106,857) Statutory valuation allowance adjustment Adjusted gross deferred tax assets (93,948) (12,909) (106,857) Deferred tax assets nonadmitted 32,193 32,193 Subtotal net admitted deferred tax assets (61,755) (12,909) (74,664 ) Deferred tax liabilities 20,925 5,056 25,981 Net admitted deferred tax asset $(40,830) $(7,853 ) $(48,683 )

The SSAP No. 101 admission calculation components are as follows:

2017 (in thousands of dollars) Ordinary Capital Total Federal income taxes paid in prior years recoverable through loss carrybacks $ $4,841 $4,841 Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax 50,264 assets from above) after application of the threshold limitation below 50,264 Adjusted gross deferred tax assets expected to be realized following the balance sheet date 50,264 50,264 Adjusted gross deferred tax assets allowed per limitation threshold NA NA 62,063 Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from above offset 23,968 by gross deferred tax liabilities) 23,968 Deferred tax assets admitted as the result of application of SSAP No. 101 $74,232 $4,841 $79,073 Ratio percentage used to determine recovery period and threshold limitation amount 748 % Amount of adjusted capital and surplus used to determine recovery period and threshold limitation above $450,063

2016 (in thousands of dollars) Ordinary Capital Total Federal income taxes paid in prior years recoverable through loss carrybacks $86,842 $5,325 $92,167 Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax 11,621 assets from above) after application of the threshold limitation below 11,621 Adjusted gross deferred tax assets expected to be realized following the balance sheet date 11,621 11,621 Adjusted gross deferred tax assets allowed per limitation threshold NA NA 63,587 Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from above offset 49,145 804 by gross deferred tax liabilities) 49,949 Deferred tax assets admitted as the result of application of SSAP No. 101 $135,987 $17,750 $153,737 Ratio percentage used to determine recovery period and threshold limitation amount 566 % Amount of adjusted capital and surplus used to determine recovery period and threshold limitation above $474,983

Change (in thousands of dollars) Ordinary Capital Total Federal income taxes paid in prior years recoverable through loss carrybacks $(86,842) $(484 ) $(87,326) Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from above) after application of the threshold limitation below 50,264 (11,621) 38,643 Adjusted gross deferred tax assets expected to be realized following the balance sheet date 50,264 (11,621) 38,643 Adjusted gross deferred tax assets allowed per limitation threshold NA NA (1,524 ) Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from above offset by gross deferred tax liabilities (25,177) (804 ) (25,981) Deferred tax assets admitted as the result of application of SSAP No. 101 $(61,755) $(12,909) $(74,664) Ratio percentage used to determine recovery period and threshold limitation amount 182 % Amount of adjusted capital and surplus used to determine recovery period and threshold limitation above $(24,920)

The impacts of tax planning strategies on the Companys DTAs are as follows:

2017 Ordinary Capital Percent Percent Determination of adjusted gross deferred tax assets and net admitted deferred tax assets by tax character as a percentage Adjusted gross DTAs $124,207 $4,841 Percentage of total adjusted gross DTAs by character admitted because of the tax impact of tax planning strategies attributable to that tax character 0 % 100 % Net admitted adjusted gross DTAs $74,232 $4,841 Percentage of net admitted adjusted gross DTAs by tax character admitted because of tax planning strategies attributable to that tax character 0 % 100 %

2016 Ordinary Capital Percent Percent Determination of adjusted gross deferred tax assets and net admitted deferred tax assets by tax character as a percentage Adjusted gross DTAs $218,155 $17,750 Percentage of total adjusted gross DTAs by character admitted because of the tax impact of tax planning strategies attributable to that tax character 0 % 100 % Net admitted adjusted gross DTAs $135,987 $17,750 Percentage of net admitted adjusted gross DTAs by tax character admitted because of tax planning strategies attributable to that tax character 0 % 100 %

Change Ordinary Capital Percent Percent Determination of adjusted gross deferred tax assets and net admitted deferred tax assets by tax character as a percentage Adjusted gross DTAs $(93,948) $(12,909) Percentage of total adjusted gross DTAs by character admitted because of the tax impact of tax planning strategies attributable to that tax character 0 % 0 % Net admitted adjusted gross DTAs $(61,755) $(12,909) Percentage of net admitted adjusted gross DTAs by tax character admitted because of tax planning strategies attributable to that tax character 0 % 0 %

The Companys tax planning strategies do not include the use of reinsurance.

The Company is currently recognizing all deferred tax liabilities.

Current income taxes incurred for the years ended December 31, 2017, 2016 and 2015 consisted of the following major components:

(in thousands of dollars) 2017 2016 2015 Current income tax Federal income tax $(2,407 ) $69,042 $39,064 Federal income tax on net capital gains / (losses) 60,750 2,208 3,102 Current tax impact of SSAP 3 adjustment (2,022 ) Federal income taxes incurred $58,343 $69,228 $42,166

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2017 and 2016 were as follows:

(in thousands of dollars) 2017 2016 Change Deferred tax assets Ordinary Deferred acquisition costs $68,595 $116,520 $(47,925) Life insurance reserves 45,735 83,420 (37,685) Compensation and benefits accrual 3,899 6,535 (2,636 ) Nonadmitted assets 3,748 7,743 (3,995 ) Depreciable assets 1,541 3,183 (1,642 ) Other 689 754 (65 ) 124,207 218,155 (93,948) Statutory valuation allowance adjustment Nonadmitted deferred tax assets (49,975 ) (82,168 ) 32,193 Admitted ordinary deferred tax assets 74,232 135,987 (61,755) Capital Investments 4,825 16,114 (11,289) Unrealized loss on investments 16 83 (67 ) Real Estate 1,553 (1,553 ) Net capital loss carryforward 4,841 17,750 (12,909) Statutory valuation allowance adjustment Nonadmitted deferred tax assets Admitted capital deferred tax assets 4,841 17,750 (12,909) Admitted deferred tax assets 79,073 153,737 (74,664) Deferred tax liabilities Ordinary Deferred and uncollected premium 19,270 33,099 (13,829) Internally developed software 2,670 4,794 (2,124 ) Pension 1,211 1,882 (671 ) Market discount on bonds 817 5,118 (4,301 ) Total ordinary deferred tax liabilities 23,968 44,893 (20,925) Capital Unrealized gain on investments 5,056 (5,056 ) Total capital deferred tax liabilities 5,056 (5,056 ) Total deferred tax liabilities 23,968 49,949 (25,981) Net admitted deferred tax assets $55,105 $103,788 $(48,683)

The change in net deferred income taxes as of December 31, 2017 and 2016 was composed of the following:

(in thousands of dollars) 2017 2016 Change Total deferred tax assets $129,048 $235,905 $(106,857) Total deferred tax liabilities (23,968 ) (49,949 ) 25,981 Net deferred tax asset (liability) $105,080 $185,956 (80,876 ) Tax effect of unrealized gains (losses) (4,989 ) Change in net deferred income tax (charge) benefit $(85,865 )

The provision for federal income taxes incurred is different from that which would be obtained by applying the statutory federal income tax rate at 35% to income before income taxes. The significant items causing this difference are as follows:

(in thousands of dollars) 2017 2016 2015 Provision computed at statutory rate $112,064 $76,191 $52,153 Change in tax rate 70,042 Ceding Commissions 5,334 Nonadmitted assets 1,497 881 1,675 Realized gain on IMR (42,050 ) Amortization of interest maintenance reserve (2,032 ) (2,279 ) (2,028 ) Separate account dividend received deduction (555 ) (521 ) (350 ) Other (92 ) 211 228 Policy loan interest change in surplus (current) (2,022 ) $144,208 $72,461 $51,678 Federal income tax incurred-operations $(2,407 ) $67,020 $39,064 Tax on capital gains (losses) 60,750 2,208 3,102 Change in net deferred income tax 85,865 3,233 9,512 Total statutory income taxes $144,208 $72,461 $51,678

As of December 31, 2017, the Company did not have any operating loss carry-forwards or capital loss carry forwards.

The following are income taxes incurred in the current and prior years that will be available for recoupment in the event of future net losses:

(in thousands of dollars) Amount 2017 $60,750 2016 2,208 2015 3,117

There were no deposits admitted under IRC §6603.

The Companys federal income tax return is consolidated with the following entities, with Farmers Group, Inc. (d.b.a Farmers Underwriters Association) as the parent:

Farmers Group, Inc. (d.b.a. Farmers Underwriters Association)

Truck Underwriters Association

Fire Underwriters Association

FIG Holding Company

FIG Leasing Company, Inc.

Farmers Services Corporation

Farmers Underwriters Association

Farmers Reinsurance Company

Farmers Life Insurance Company of New York

The method of allocation between the companies is subject to a written agreement, which has been approved by the Board of Directors. Allocation is based upon separate return calculations with an immediate benefit for a taxable loss which is utilized in the current year consolidated return. Intercompany tax balances are settled annually within 30 days after the filing of the consolidated federal income tax return, the payment of an estimated payment, an additional assessment of the consolidated tax liability, a refund of the consolidated tax liability or any other reduction to the members apportioned tax liability in accordance with the tax sharing agreement.

The Company adheres to the provisions of the Life Insurance Company Income Tax Act of 1959 as amended by the 1984 and 1986 Tax Reform Acts.

The Tax Cuts and Jobs Act (H.R.1) was enacted into law on December 22, 2017. The Company re-valued the deferred tax assets and liabilities from a 35% corporate tax rate to the enacted 21% corporate tax rate at December 31, 2017. The re-valuation resulted in a decrease in admitted deferred tax assets amounting to $36,646,000 and is reflected as a direct charge to surplus in the appropriate categories in the accompanying financial statements.

The Company has reviewed and identified specific tax effects under the Act. With respect to the tax basis life insurance reserves being modified beginning after December 31, 2017, a transition adjustment for the difference between the amount of the tax basis life reserves at December 2017 and the amount of the new tax basis under the new law will be brought into taxable income over eight taxable years starting in 2018.

The December 31, 2017 financial statements included a new deferred tax asset for the transition adjustment related to tax basis life reserves, with an offsetting reduction to the existing deferred tax asset on life reserves. The Company recorded a provisional estimate for the transition adjustment in the year-end 2017 statutory financial statements, which resulted in an increase in admitted deferred tax asset by $136,000.

Additional clarification regarding the application of the new law to tax basis life reserves is expected in 2018. In accordance with the INT 18-01 (Updated Tax Estimates under the Tax Cuts and Jobs Act), updated information for the transition adjustment will not be recognized as a Type I subsequent event, and the updates will be recognized as a change in accounting estimate in the 2018 financial statements.

The Company did not accrue any interest and penalties related to income tax contingencies.

The Company does not have any tax loss contingencies for which it is reasonably possible that the total liability will significantly increase within twelve months of the reporting date.

13. Contingencies The Company is subject to guaranty fund and other assessments by the states in which it writes business. Guaranty fund assessments are accrued at the time of insolvencies as they become known to the Company, if they are material. Other assessments are accrued at the time of assessment, or, in the case of loss-based assessments, at the time the losses are incurred. Based upon information provided by the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA), the Company has accrued liabilities for guaranty fund assessments of $1,573,000 and $1,712,000 for December 31, 2017 and December 31, 2016, respectively; and related premium tax benefit assets of $1,211,000 and $1,338,000 for December 31, 2017 and December 31, 2016, respectively. The amounts represent managements best estimates based on information received from the states in which the Company writes business and may change due to many factors including the Companys share of the ultimate cost of current insolvencies.

The Company is periodically subject to lawsuits arising from the normal course of its business activities. These actions are in various stages of discovery and development, and some seek punitive as well as compensatory damages. In the opinion of management, the Company has not engaged in any conduct that should warrant the award of any material punitive or compensatory damages. Acting on the advice of counsel, the Company intends to vigorously defend its position in each case, and management believes that, while it is not possible to predict the outcome of such matters with absolute certainty, ultimate disposition of these proceedings should not have a material adverse effect on the Companys statements of assets, liabilities, capital and surplus, results of operations or cash flows.

14. Commitments In 2013 as part of the Companys investment strategy, it entered into a commitment to invest $700,000,000 in private placement securities. In 2015 the commitment increased to $1,000,000,000. The remaining commitment for investment in private placement securities as of December 31, 2017 and 2016 was approximately $5,520,000 and $39,180,000, respectively. The Company also entered into a commitment to invest $600,000,000 in direct commercial mortgages. The remaining commitment for investment in direct commercial mortgages as of December 31, 2017 was approximately $21,311,000.

In December 2005, the Company sold real property occupied by the Company for $39,550,000. Under the terms of the agreement, the Company is leasing back the property from the purchaser for a period of 15 years. The sale-leaseback transaction does not include any form of continuing involvement that would preclude the Company from using sale-leaseback accounting. The Company is accounting for the leaseback as an operating lease.

The gain of approximately $29,250,000 realized in this transaction has been deferred and is being amortized to income in proportion to rent charged over the term of the lease. The Company recognized approximately $2,159,000, $2,101,000 and $2,045,000 of this gain for the year ended December 31, 2017, 2016 and 2015, respectively. The liability for the remaining deferred gain on sale as of December 31, 2017 and 2016 was $6,796,000 and $8,954,000, respectively, and is included in other liabilities on the balance sheet.

The lease contains 4 successive renewal options, each to extend the lease upon expiration for an additional 5 years. For the year ended December 31, 2017, the total minimum rental expense incurred by the Company under this lease was approximately $2,834,000.

Statutory guidance provides that an operating expense lease should be recognized on a straight-line basis over the lease term, even if payments are not made on a straight-line basis. Accordingly, the lease will be recognized at the rate of approximately $2,834,000 per year for the original lease period of 15 years.

As of December 31, 2017, the future minimum rental payments required by leases are as follows:

(in thousands of dollars) Years Ending December 31, 2018 $3,329 2019 3,379 2020 3,429 2021 Total future minimum payments required* $10,137

* Minimum payments have not been reduced by minimum sublease rentals of $15,000 due in the future under non-cancelable subleases.

The following schedule shows the composition of total rental expense for all operating leases except those with terms of a month or less that were not renewed:

Years Ending December 31, (in thousands of dollars) 2017 2016 2015 Minimum rentals $2,834 $2,841 $2,834 Less: Sublease rentals (15 ) (15 ) (29 ) $2,819 $2,826 $2,805

Please see Note 19 for additional information on leases.

15. Separate Accounts The Company is licensed to issue VUL and deferred variable annuity contracts. Effective September 30, 2012, the Company stopped issuing new variable annuity contracts. The assets and liabilities held for VUL, Farmers EssentialLife VUL, Accumulator VUL and deferred variable annuity contracts are held in the Accounts, which are legally segregated from the general assets of the Company. As of December 31, 2017, there were 36 subaccounts available for the VUL products, 47 subaccounts available for variable annuity, 41 subaccounts available for Farmers EssentialLife VUL and 21 subaccounts available for the Accumulator VUL product. The sub-accounts invest in underlying mutual fund portfolios. Shares of each portfolio are purchased and redeemed at net asset value, without a sales charge. Any dividends and distributions from a portfolio are reinvested at net asset value in shares of that same portfolio. The deposits collected for variable contracts are invested at the direction of the contract holders in the subaccounts that comprise the Accounts. Absent any contract provisions wherein the Company contractually guarantees either a minimum return or account value, the contract holders bear the investment risk that the subaccounts may not meet their stated objectives. The assets of the Accounts are carried at fair value. The Accounts liabilities represent the contract holders claims to the related assets. Investment income and realized capital gains and losses of the Accounts accrue directly to the contract holders and, therefore, are not included in the Companys statutory basis statements of operations. Mortality, policy administration, and surrender charges to all accounts are included in the revenues of the Company.

As of December 31, 2017 the separate account assets that are legally insulated from the general account claims are as follows:

Legally Insulated (in thousands of dollars) Assets Farmers Variable Annuity $227,622 Farmers Variable Universal Life 348,026 Farmers LifeAccumulator VUL 26,840 Farmers EssentialLife VUL 204,310 $806,798

Only the Companys Variable Annuity has separate account products with guarantees backed by the general account. The maximum guarantee for separate account products as of December 31, 2017 is $373,807,000. The fund value is $367,429,000. The maximum guarantee excess is $6,378,000.

The risk charges paid by the separate account to the general account for the past five years as compensation for the risk taken by the general account are as follows:

(in thousands of dollars) Risk Year Charges 2017 $ 306 2016 303 2015 333 2014 357 2013 339

The amounts paid by the general account due to separate account guarantees during the past five years consisted of the following:

(in thousands of dollars) Separate Account Year Guarantees 2017 $ 209 2016 167 2015 47 2014 33 2013 138

Premiums, considerations or deposits received for the years ended December 31, 2017, 2016 and 2015, were approximately $112,706,000, $102,436,000 and $98,520,000, respectively.

Reserves for accounts with assets as of December 31, 2017 and 2016, at market value are approximately $781,258,000 and $650,754,000, respectively. The entire reserve amount is subject to discretionary withdrawal. Since all investment returns are credited directly to the policyholders, no reserves are held for asset default risk in lieu of AVR.

A reconciliation of net transfers to separate accounts for the years ended December 31, 2017, 2016 and 2015 is as follows:

(in thousands of dollars) 2017 2016 2015 Transfers (from)/to as reported in the statements of operations of the separate accounts $728 $5,851 $2,508 Less: Sundry general income/(expense) 107 (23 ) (107 ) Transfers ceded to Reinsurer (308) Net transfers (from)/to separate accounts $527 $5,828 $2,401

16. Premium and Annuity Considerations Deferred and Uncollected The following are deferred and uncollected life and accident and health insurance premiums and annuity considerations as of December 31, 2017 and 2016:

2017 2016 Net of Net of (in thousands of dollars) Gross Loading Gross Loading Type Ordinary new business $7,459 $1,383 $7,393 $1,392 Ordinary renewal 156,239 91,268 161,003 94,115 $163,698 $92,651 $168,396 $95,507

17. Analysis of Annuity Actuarial Reserves and Deposit-Type Liabilities By Withdrawal Characteristics The following is the analysis of annuity actuarial reserves and deposit-type liabilities by withdrawal characteristics as of December 31, 2017 and 2016:

(in thousands of dollars) 2017 Separate General Account with % of Account Guarantees Total Total Subject to discretionary withdrawal: At book value less current surrender charge of 5% or more $228,882 $ $228,882 8.8 % At fair value 227,040 227,040 8.7 Total with market value adjustment or at fair value 228,882 227,040 455,922 17.5 At book value without adjustment (minimal or no charge or adjustment) 1,612,542 1,612,542 61.7 Not subject to discretionary withdrawal 545,093 545,093 20.8 Total 2,386,517 227,040 2,613,557 100.0% Reinsurance ceded 2,060,632 2,060,632 Total (net) 325,885 227,040 552,925

(in thousands of dollars) 2016 Separate General Account with % of Account Guarantees Total Total Subject to discretionary withdrawal: At book value less current surrender charge of 5% or more $285,224 $ $285,224 10.7 % At fair value 212,358 212,358 8.0 Total with market value adjustment or at fair value 285,224 212,358 497,582 18.7 At book value without adjustment (minimal or no charge or adjustment) 1,593,601 1,593,601 60.1 Not subject to discretionary withdrawal 562,082 562,082 21.2 Total $2,440,907 $212,358 $2,653,265 100.0%

18. Reconciliation to Annual Statement At December 31, 2017 there was an annual statement to audited statement adjustment for the cash flow statement to tie back the federal and foreign income taxes paid line ($58,100,000) back to the actual cash payments made for the year ($66,500,000) net of the settlement with FGI for 2017 ($8,400,000).

There was an annual statement to audited statement adjustment as of December 31, 2017 for the cash flow statement presentation of reinsurance transaction of $2,280,901,000 with Reinsurance Group of America. For the audited statement we are presenting as non-cash related transaction. While this did not change the total cash balance within the balance sheet it did change the following lines within cash flow statement which is reconciled below:

2017 as 2017 as reported in reported in audited annual financial statement statements Statutory Cash Flow Statement ($000) ($000) 1. Premiums collected net of reinsurance $(1,733,827) $547,074 2. Net Investment Income $220,111 $220,148 5. Benefits and loss related payments $266,973 $487,981 9. Federal and foreign income taxes paid $52,960 $58,100 11. Net cash from operations $(1,928,613) $126,178 12. Bonds $2,974,674 $693,773 12.8 Total investment proceeds $3,112,846 $831,945 13.6 Miscellaneous applications $17,843 $12,740 15. Net cash from investments $2,256,010 $(19,788 ) 16.4 Net deposits on deposit-type contracts and other insurance liabilities $(211,058 ) $9,950 17. Net cash from financing and miscellaneous sources $(364,438 ) $(143,430) 19.2 End of year cash balance $69,193 $69,193

There was an annual statement to audited statement adjustment as of December 31, 2016 for the treatment of a $1,000,000 deposit for the acquisition of a real estate investment property, Pompano Distribution Center II, which is expected to close in September 2017. For the annual statement this was presented in the aggregate write-ins for invested assets, line 11 of page 2. For presentation of the audited statement we are presenting the $1,000,000 within the other assets. This a reclass between two asset lines and does not change the total admitted assets as seen in a reconciliation of the two lines summarized below:

2016 as 2016 as reported in reported in audited annual financial statement statements Statutory Balance Sheet Assets page ($000) ($000) Aggregate write-ins for invested Assets $1,000 $0 Subtotals, cash and invested assets $6,179,081 $6,178,081 Other Assets $33,537 $34,537 Total Admitted Assets $7,155,345 $7,155,345

At December 31, 2016 there was an annual statement to audited statement adjustment for the cash flow statement to tie back the federal and foreign income taxes paid line ($66,552,000) back to the actual cash payments made for the year ($76,000,000) net of the settlement with FGI for 2016 ($9,448,000). While this did not change the total cash balance within the balance sheet it did change the following lines within cash flow statement which is reconciled below:

2016 as 2016 as reported in reported in audited annual financial statement statements Statutory Cash Flow Statement ($000) ($000) 2. Net Investment Income $279,205 $272,317 5. Benefit and loss related to payments $511,297 $520,992 9. Federal and foreign income taxes paid $70,785 $66,552 11. Net cash from operations $174,818 $162,468 12.7 Miscellaneous proceeds $12,592 $10,109 13.6 Miscellaneous applications $4,205 $1,000 15. Net cash from investments $(10,865 ) $(14,428 ) 16.6 Other cash provide (applied) $(11,314 ) $(4,213 ) 17. Net cash from financing and miscellaneous sources $(111,066) $(103,965) 19.2 End of year cash balance $106,234 $106,234

At December 31, 2015, the Company held, directly and indirectly, through its fully owned LLCs, approximately $141 million of real estate investments consisting of 12 properties that are managed by 3rd party property management companies (Managers). Property cash refers to the bank accounts used by the Managers to receive rent, interest and other deposits or pay for expenses related to the day-to-day management of the real estate property. These bank accounts were opened based on W9 form issued with FNWLs tax identification number. Unless specifically requested, FNWL is not an authorized signatory or granted authority to initiate disbursements. The Managers remits excess cash directly to FNWLs operating cash account as authorized by FNWLs asset manager, Zurich Alternative Asset Management (ZAAM), from time to time, typically on a quarterly basis.

In December 2015, the Company reviewed the treatment of property cash and found that it was being included within the aggregate write-in lines for assets on the statutory balance sheet within the debit balance suspense accounts, which are non-admitted, instead of being reported on the cash line as allowed by Statement of Statutory Accounting Principles (SSAP) No. 2 Cash, Drafts,

In FNWLs 2014 and prior statutory audited financial statements, the property cash that was contained in the debit balance suspense accounts was treated as non-admitted as it was captured as a part of the debit balance suspense and non-admission journal entries.

As of December 31, 2015, the property cash balance was $8,812,000, and was reclassified for purposes of these audited financial statements to the asset line cash, cash equivalents and short-term investments. This reclassification impacted the statutory balance sheet, statutory statement of capital and surplus, and statutory cash flow statement for 2015 by reflecting an increase in cash, total admitted assets and surplus in the amounts of property cash at each period end.

There was no impact to net income or total liabilities in any year as a result of this reclassification. The impacts of the reclass to the statutory balance sheet, statutory statement of changes in capital and surplus; and statement of cash flows for the change in the reporting of property cash are summarized below:

2015 as 2015 as reported in reported in audited annual financial statement statements Statutory Balance Sheet ($000) ($000) Cash, cash equivalents and short-term investments $53,347 $62,159 Total admitted assets $7,048,915 $7,057,727 Total capital and surplus $481,486 $490,298

Total Unassigned Capital and Unassigned Surplus as Total Surplus as Surplus as reported in Capital and reported in reported in the audited Surplus as the audited annual financial previously financial statement statements reported statements Statement of Changes in Capital and Surplus ($000) ($000) ($000) ($000) Change in net deferred income tax ($6,428 ) ($9,512 ) ($6,428 ) ($9,512 ) Change in nonadmitted assets $ 3,434 $ 15,330 $ 3,434 $ 15,330 Balances at December 31, 2015 $ 471,687 $ 480,499 $ 481,486 $ 490,298

2015 as 2015 as reported in reported in the audited annual financial statement statements Statement of Cash Flows ($000) ($000) Other cash (applied) / provided ($29,268 ) ($20,456 ) Net cash used by financing and miscellaneous sources ($142,749) ($133,937) Net change in cash, cash equivalents and short-term investments ($23,795 ) ($14,983 ) Cash, cash equivalents and short-term investments End of Year $ 53,347 $ 62,159

19. Subsequent Events The Company is recognizing a Type II subsequent event from entering into a lease commitment on January 22, 2018, which was after the balance sheet date of these financials, but before the statements were issued. The long term (127 month) operating lease is for office space with a lease inception date of November 1, 2018 and expiration date of May 31, 2029. The estimated total minimum rental payments required by the lease is $21,178,432. The Company does not believe this event will have a material impact on its financial condition.

The Company is recognizing a Type II subsequent event from entering into a lease commitment on March 30, 2018, which was after the balance sheet date of these financials, but before the statements were issued. The long term (63 month) operating lease is for office space with a lease inception date of March 30, 2018 and expiration date of June 31, 2023. The estimated total minimum rental payments required by the lease is $2,897,829. The Company does not believe this event will have a material impact on its financial condition.

The following is a summary of certain financial data included in other exhibits and schedules subjected to audit procedures by independent accountants and utilized by actuaries in the determination of reserves:

Investment income earned U.S. government bonds $8,829,639 Other bonds (unaffiliated) 137,831,091 Common stocks (unaffiliated) 86,841 Mortgage loans 22,281,144 Real estate 12,603,891 Contract loans 19,981,386 Cash, cash equivalents and short-term investments 732,073 Aggregate write-ins for investment income 804,895 Total gross investment income $203,150,960 Real estate owned - book value less encumbrances $140,527,660 Mortgage loans - book value Commercial mortgages $578,689,207 Total mortgage loans $578,689,207 Mortgage loans by standing - book value Good standing $578,689,207 Other long-term invested assets (Schedule BA) - statement value $100,000,000

Bonds and short-term investments by class and maturity Bonds by maturity-statement value Due with 1 year or less $157,069,986 Over 1 year through 5 years 906,777,720 Over 5 years through 10 years 790,449,567 Over 10 years through 20 years 700,596,149 Over 20 years 310,131,925 Total by maturity $2,865,025,347 Bonds by class - statement value Class 1 $1,786,605,490 Class 2 960,410,220 Class 3 85,090,866 Class 4 24,168,985 Class 5 8,749,622 Class 6 164 Total by class $2,865,025,347 Total bonds publicly traded $1,578,419,044 Total bonds privately placed $1,286,606,303 Common stocks - equity value $3,225,629 Short-term investments - book value $49,262,009 Cash on deposit $19,931,097

(in thousands of dollars) Life insurance in force: Industrial $ Ordinary $68,818,910 Credit life $ Group life $1,736 Amount of additional accidental death benefits in force under ordinary policies $2,748,122 Life insurance policies with disability provisions in force: Industrial $ Ordinary $36,758,341 Credit life $ Group life $245

Supplementary contracts in force: Ordinary - not involving life contingencies Amount on deposit $23,403,409 Income payable $116,886 Ordinary - involving life contingencies Income payable $129,053 Annuities Ordinary Immediate-amount of income payable $10,655,159 Deferred-fully paid-account balance $ Deferred-not fully paid account balance $ Accident and health insurance-premiums in force: Ordinary $19,537,042 Group $24 Credit $ Deposit funds and dividend accumulations Deposit funds-account-balance $162,462,836 Other accidental and health 2017 $2,246,000 2016 $2,905,000 2015 $4,222,000 2014 $3,225,000 2013 $1,886,000 Prior years $1,750,000

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The following is a summary of certain financial data included in other exhibits and schedules in the Companys 2017 statutory annual financial statement as filed with state regulatory authorities.

The Companys gross investment holdings as filed in the 2017 Audited Statement are $4,054,595,332.

Admitted Assets as Reported Gross Investment Holdings in the Annual Statement Amount Percentage Amount Percentage Investment Categories Bonds U.S. treasury securities $355,001,736 8.756 % $355,001,736 8.756 % U.S. government obligations issued by U.S. government- sponsored agencies 199,370 0.005 % 199,370 0.005 % Foreign government (including Canadian, excluding mortgage-backed securities) 3,076,083 0.076 % 3,076,083 0.076 % Securities issued by states, territories and possessions and political subdivisions in the U.S. 5,195,935 0.128 % 5,195,935 0.128 % Political subdivisions of state, territories and possessions general obligations 18,976,295 0.468 % 18,976,295 0.468 % Revenue and assessment obligations Mortgage-backed securities 62,886,018 1.551 % 62,886,018 1.551 % Pass-through securities Guaranteed by GNMA 11,279,284 0.278 % 11,279,284 0.278 % Issued by FNMA, FHLMC & GNMA 83,540,982 2.060 % 83,540,982 2.060 % All other 165 0.000 % 165 0.000 % CMOs and REMICs Issued by FNMA and FHLMC 269,944,141 6.658 % 269,944,141 6.658 % Issued by non-U.S. government issuers All other 176,099,317 4.343 % 176,099,317 4.343 % Other debt and other fixed income securities (excludes short-term) Unaffiliated domestic securities (includes credit tenant loans rated by the SVO) 1,554,345,223 38.335 % 1,554,345,223 38.335 % Unaffiliated foreign securities 324,480,798 8.003 % 324,480,798 8.003 % Equity interests Unaffiliated 3,225,629 0.080 % 3,225,629 0.080 % Mortgage loans Commercial loans 578,689,207 14.272 % 578,689,207 14.272 % Real estate investments Property held for the production of income 135,686,536 3.346 % 135,686,536 3.346 % Property held for sale 4,841,124 0.119 % 4,841,124 0.119 % Contract loans 283,720,947 6.998 % 283,720,947 6.998 % Receivables for Securities 3,535,436 0.087 % 3,535,436 0.087 % Securities Lending 10,678,000 0.263 % 10,678,000 0.263 % Cash, cash equivalents and short-term investments 69,193,106 1.707 % 69,193,106 1.707 % Other invested assets 100,000,000 2.466 % 100,000,000 2.466 % Total invested assets $4,054,595,332 100.00 % $4,054,595,332 100.00 %

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The Companys total admitted assets, excluding separate account assets, as filed in the 2017 Annual Statement were $4,320,521,929.

The Companys ten largest exposures to a single issuer/borrower/investment, excluding U.S. government, U.S. government agency securities and those U.S. government money market funds listed in the Appendix to the NAIC SVO Purposes and Procedures Manual as exempt, property occupied by the Company and policy loans are as follows:

Percentage of Total Admitted Investments Description of Exposure Amount Assets Farmers Insurance Exchange Surplus Note $100,000,000 2.3 % Mount Evans 2 Ltd. Corporate Bonds 84,967,738 2.0 % Majestic Realty Company Mortgage Loan 41,673,126 1.0 % FNR 2016-95/97/101/99/94/88 Mortgage-Backed Securities 41,574,186 1.0 % AEW Capital Management Mortgage Loan 35,035,814 0.8 % Galvin (CHI Ind 1 LLC) Direct Real Estate 26,559,920 0.6 % Franklin (BOS Office 3 LLC) Direct Real Estate 25,710,053 0.6 % Stockbridge Capital Group Mortgage Loan 25,291,539 0.6 % Garden Homes Mortgage Loan 23,841,446 0.6 % Portrero (SF Industrial 1, LLC) Direct Real Estate 23,832,404 0.6 %

The amounts and percentages of the Companys total admitted assets held in bonds by NAIC rating are as follows:

Bonds Book Value Percentage NAIC - 1 $1,786,605,490 41.35 % NAIC - 2 960,410,220 22.23 % NAIC - 3 85,090,866 1.97 % NAIC - 4 24,168,985 0.56 % NAIC - 5 8,749,622 0.20 % NAIC - 6 164 0.00 % $2,865,025,347 66.31 %

The Company holds admitted assets in foreign investments of approximately $230,188,435 or 5.3% of total admitted assets.

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The amounts and percentages of the Companys total admitted assets held in aggregate foreign investment exposures categorized by NAIC sovereign rating are as follows:

Percentage of Total Admitted Amount Assets Countries rated NAIC - 1 $222,837,803 5.2 % Countries rated NAIC - 2 7,350,632 0.2 % Countries rated NAIC - 3 or below 0.0 % $230,188,435 5.3 %

The Companys largest foreign investment exposures to a single country, categorized by the countrys NAIC sovereign rating:

Percentage of Total Admitted Amount Assets Countries rated NAIC - 1 United Kingdom $109,407,337 2.5 % Australia 38,924,911 0.9 % Countries rated NAIC -2 Italy 7,350,632 0.2 % Countries rated NAIC - 3 or below

Questions 7 through 9 are not applicable as the Company does not have unhedged foreign currency exposure.

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The Companys ten largest non-sovereign foreign issues and related amounts and percentages of total admitted assets are listed below:

Percentage of Total Admitted NAIC Rating Issuer Amount Assets 2FE Mount Evans 2 Ltd. $84,967,738 2.0 % 1 FONTERRA CO-OPERATIVE GROUP LTD 16,041,528 0.4 % 2FE WINDMW GMBH 11,459,858 0.3 % 2 TRANSURBAN FINANCE CO PTY LTD 10,588,087 0.2 % 3 MURRAY GOULBURN COOPERATIVE CO. LTD. 10,441,976 0.2 % 2 SAFTE GROUPE SA 10,000,308 0.2 % 2FE ORICA FINANCE LIMITED 9,762,657 0.2 % 1FE HSBC HOLDINGS PLC 8,816,876 0.2 % 1FE EMPRESA DE TRANSPORTE ME 7,882,402 0.2 % 2 ARISTON THERMO BENELUX SA 7,350,632 0.2 %

The Company holds Canadian investments of approximately $95,913,079 or 2.2% of total admitted assets, which is below the threshold of 2.50%.

Question 12 is not applicable as the Company does not hold any investments with contractual sales restrictions.

The Company holds admitted assets in equity interests of approximately $3,225,629 or .07% of total admitted assets, which is below the threshold of 2.50%.

The Company holds approximately $578,689,207or 13.4% of total admitted assets, in mortgage loans, which is above the threshold of 2.50%. Of the total invested, 13.1% was made in loans with an LTV range of 70% or less, with the remaining 0.3% in the 71-80% range.

The Company holds approximately $140,527,660 or 3.25% of total admitted assets, in investment real estate properties, which is above the threshold of 2.50%

The Company holds the following amounts in securities lending arrangements (not including assets held as collateral for such transactions) as of:

Percentage of Total Admitted Date Amount Assets March 31, 2017 (unaudited) $18,956,890 Not applicable June 30, 2017 (unaudited) Not applicable September 30, 2017 (unaudited) 32,389,470 Not applicable December 31, 2017 10,678,000 0.247 %

Question 21 is not applicable as the Company does not hold any investments in warrants, options, caps and floors.

Questions 22 and 23 are not applicable as the Company holds no investments in collars, swaps, forwards or futures contracts.

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Page(s) Report of Independent Registered Public Accounting Firm 1-3 Financial Statements Statement of Assets and Liabilities December 31, 2017 4-9 Statement of Operations Year Ended December 31, 2017 10-15 Statements of Changes in Net Assets Years Ended December 31, 2017 and 2016 16-27 Notes to Financial Statements December 31, 2017 28-54

Report of Independent Registered Public Accounting Firm

To the Board of Directors of Farmers New World Life Insurance Company and the Contract Owners of Farmers Annuity Separate Account A

Opinions on the Financial Statements We have audited the accompanying statements of assets and liabilities of each of the subaccounts of the Farmers Annuity Separate Account A listed in the table below as of December 31, 2017, and related statement of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the subaccounts in the Farmers Annuity Separate Account A as of December 31, 2017, and the results of each of their operations for the year ended December 31, 2017 and changes in each of their net assets for the years ended December 31, 2017 and 2016 in conformity with accounting principles generally accepted in the United States of America.

Calvert Variable Series, Inc. VP SRI Mid Cap Portfolio Deutsche Variable Series I Class A Shares Bond VIP Deutsche Variable Series I Class A Shares Core Equity VIP Deutsche Variable Series I Class A Shares CROCI® International VIP Deutsche Variable Series I Class A Shares Global Small Cap VIP Deutsche Variable Series II Class A Shares Government & Agency Securities VIP Deutsche Variable Series II Class A Shares Government Money Deutsche Variable Series II Class A Shares High Income VIP Market VIP Deutsche Variable Series II Class A Shares CROCI® U.S. VIP Deutsche Variable Series II Class A Shares Small Mid Cap Growth VIP Dreyfus Variable Investment Fund Service Class Shares Dreyfus Variable Investment Fund Service Class Shares Quality Opportunistic Small Cap Portfolio Bond Portfolio Dreyfus Sustainable U.S. Equity Portfolio, Inc. Service Fidelity Variable Insurance Products (VIP) Funds Service Class Shares Dreyfus Sustainable U.S. Equity Portfolio Class Shares VIP Growth Portfolio Fidelity Variable Insurance Products (VIP) Funds Service Fidelity Variable Insurance Products (VIP) Funds Service Class Shares VIP Index 500 Portfolio Class Shares VIP Mid Cap Portfolio Fidelity VIP Freedom Funds Service Class 2 Shares VIP Freedom Fidelity VIP Freedom Funds Service Class 2 Shares VIP 2005 Portfolio Freedom 2010 Portfolio Fidelity VIP Freedom Funds Service Class 2 Shares VIP Freedom Fidelity VIP Freedom Funds Service Class 2 Shares VIP 2015 Portfolio Freedom 2020 Portfolio Fidelity VIP Freedom Funds Service Class 2 Shares VIP Freedom Fidelity VIP Freedom Funds Service Class 2 Shares VIP 2025 Portfolio Freedom 2030 Portfolio Fidelity VIP Freedom Funds Service Class 2 Shares VIP Freedom Fidelity VIP FundsManager Portfolios Service Class 2 Shares Income Portfolio VIP FundsManager 20% Portfolio Fidelity VIP FundsManager Portfolios Service Class 2 Shares Fidelity VIP FundsManager Portfolios Service Class 2 Shares VIP FundsManager 50% Portfolio VIP FundsManager 70% Portfolio

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Fidelity VIP FundsManager Portfolios Service Class 2 Shares Franklin Templeton Variable Insurance Products Trust Class 2 VIP FundsManager 85% Portfolio Shares Developing Markets VIP Fund Franklin Templeton Variable Insurance Products Trust Class 2 Franklin Templeton Variable Insurance Products Trust Class 2 Shares Small - Mid Cap Growth VIP Fund Shares Small Cap Value VIP Fund Goldman Sachs Variable Insurance Trust Institutional Goldman Sachs Variable Insurance Trust Institutional Class Shares Mid Cap Value Fund Class Shares Small Cap Equity Insights Fund Goldman Sachs Variable Insurance Trust Institutional Janus Henderson VIT Balanced Portfolio (Service Shares) Class Shares Strategic Growth Fund Janus Henderson VIT Enterprise Portfolio (Service Shares) Janus Henderson VIT Forty Portfolio (Institutional Shares) PIMCO Variable Insurance Trust Administrative Class Shares PIMCO Variable Insurance Trust Administrative Class Shares VIT Foreign Bond Portfolio (U.S. Dollar-Hedged) VIT Low Duration Portfolio Principal Variable Contracts Funds, Inc. (PVC) Class 2 Shares Principal Variable Contracts Funds, Inc. (PVC) Class 2 Shares Equity Funds Capital Appreciation Account Equity Funds Equity Income Account Principal Variable Contracts Funds, Inc. (PVC) Class 2 Shares Principal Variable Contracts Funds, Inc. (PVC) Class 2 Shares Equity Funds MidCap Account Equity Funds SmallCap Account Principal Variable Contracts Funds, Inc. (PVC) Class 2 Shares Principal Variable Contracts Funds, Inc. (PVC) Class 2 Shares Strategic Asset Management (SAM) Portfolios SAM Balanced Strategic Asset Management (SAM) Portfolios SAM Portfolio Conservative Balanced Portfolio Principal Variable Contracts Funds, Inc. (PVC) Class 2 Shares Principal Variable Contracts Funds, Inc. (PVC) Class 2 Shares Strategic Asset Management (SAM) Portfolios SAM Strategic Asset Management (SAM) Portfolios SAM Flexible Conservative Growth Portfolio Income Portfolio Principal Variable Contracts Funds, Inc. (PVC) Class 2 Shares Strategic Asset Management (SAM) Portfolios SAM Strategic Growth Portfolio

Basis for Opinions These financial statements are the responsibility of Farmers New World Life Insurance Company management. Our responsibility is to express an opinion on the financial statements of each of the subaccounts in the Farmers Annuity Separate Account A based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to each of the subaccounts in the Farmers Annuity Separate Account A in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2017 by correspondence with the transfer agents. We believe that our audits provide a reasonable basis for our opinions.

/s/ PricewaterhouseCoopers LLP Los Angeles, California May 17, 2018

We have served as the auditor of one or more of the subaccounts in Farmers Annuity Separate Account A since 2001.

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Calvert Variable Deutsche Variable Series II Class A Series, Inc. Deutsche Variable Series I Class A Shares Shares CROCI® Government & Government VP SRI Mid Core Equity International Global Small Agency Money High Income Cap Portfolio Bond VIP VIP VIP Cap VIP Securities VIP Market VIP VIP Assets Investments, at fair value $ 289,906 $4,611,522 $3,629,764 $4,629,849 $4,170,024 $2,486,971 $819,928 $3,636,822 Dividends receivable 279 Total assets 289,906 4,611,522 3,629,764 4,629,849 4,170,024 2,486,971 820,207 3,636,822 Liabilities Total liabilities Net assets $ 289,906 $4,611,522 $3,629,764 $4,629,849 $4,170,024 $2,486,971 $820,207 $3,636,822 Accumulation units outstanding 13,689 293,795 175,789 595,043 166,012 147,159 78,435 162,878 Unit value of accumulation units $ 21.18 $15.70 $20.65 $7.78 $25.12 $16.90 $10.46 $22.33 Shares owned in each portfolio 9,071 809,039 247,935 630,770 323,258 223,047 819,927 571,827 Market value per share $ 31.96 $5.70 $14.64 $7.34 $12.90 $11.15 $1.00 $6.36 Cost of investments $ 242,559 $4,510,683 $2,133,734 $4,397,620 $3,421,488 $2,605,490 $819,927 $3,589,231

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

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Dreyfus Sustainable U.S. Equity Deutsche Variable Dreyfus Variable Portfolio, Inc. Series II Class A Investment Fund Service Class Fidelity Variable Insurance Products Shares, continued Service Class Shares Shares (VIP) Funds Service Class Shares Small Mid Cap Opportunistic Quality Dreyfus Sustainable VIP Mid CROCI® U.S. Growth Small Cap Bond U.S. Equity VIP Growth VIP Index 500 Cap VIP (1) VIP Portfolio Portfolio Portfolio (2) Portfolio Portfolio Portfolio Assets Investments, at fair value $10,682,847 $349,331 $2,468,483 $781,239 $ 218,489 $9,206,221 $11,366,584 $7,454,694 Dividends receivable Total assets 10,682,847 349,331 2,468,483 781,239 218,489 9,206,221 11,366,584 7,454,694 Liabilities Total liabilities Net assets $10,682,847 $349,331 $2,468,483 $781,239 $ 218,489 $9,206,221 $11,366,584 $7,454,694 Accumulation units outstanding 326,128 39,879 122,347 51,810 13,109 440,495 487,931 171,525 Unit value of accumulation units $32.76 $8.76 $20.18 $15.08 $ 16.67 $20.90 $23.30 $43.46 Shares owned in each portfolio 641,998 15,922 41,846 65,595 5,490 124,813 42,063 193,127 Market value per share $16.64 $21.94 $58.99 $11.91 $ 39.80 $73.76 $270.23 $38.60 Cost of investments $8,464,766 $203,237 $1,269,220 $723,868 $ 193,761 $4,705,689 $6,454,770 $5,065,667

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

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Fidelity VIP FundsManager Portfolios Service Class 2 Fidelity VIP Freedom Funds Service Class 2 Shares Shares VIP VIP VIP VIP VIP VIP VIP Freedom Freedom Freedom Freedom Freedom Freedom Freedom VIP 2005 2010 2015 2020 2025 2030 Income FundsManager Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio 20% Portfolio Assets Investments, at fair value $8,035 $248,070 $611,024 $1,548,567 $1,491,097 $1,271,293 $238,119 $ 528,842 Dividends receivable Total assets 8,035 248,070 611,024 1,548,567 1,491,097 1,271,293 238,119 528,842 Liabilities Total liabilities Net assets $8,035 $248,070 $611,024 $1,548,567 $1,491,097 $1,271,293 $238,119 $ 528,842 Accumulation units outstanding 561 16,203 38,663 96,160 88,275 73,678 18,180 41,624 Unit value of accumulation units $14.32 $15.31 $15.80 $16.10 $16.89 $17.25 $13.10 $ 12.71 Shares owned in each portfolio 650 18,582 44,895 111,088 102,551 87,075 20,545 45,590 Market value per share $12.36 $13.35 $13.61 $13.94 $14.54 $14.60 $11.59 $ 11.60 Cost of investments $7,403 $178,736 $439,391 $1,170,284 $1,170,257 $962,985 $213,727 $ 488,970

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

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Goldman Sachs Variable Fidelity VIP FundsManager Portfolios Service Franklin Templeton Variable Insurance Insurance Trust Class 2 Shares, continued Products Trust Class 2 Shares Institutional Class Shares Developing Small Cap VIP VIP VIP Markets Small Mid Small Cap Equity FundsManager FundsManager FundsManager VIP Cap Growth Value VIP Mid Cap Insights 50% Portfolio 70% Portfolio 85% Portfolio Fund VIP Fund Fund Value Fund Fund Assets Investments, at fair value $1,332,604 $1,931,239 $2,822,812 $2,011,046 $2,972,639 $3,324,393 $3,858,446 $912,577 Dividends receivable Total assets 1,332,604 1,931,239 2,822,812 2,011,046 2,972,639 3,324,393 3,858,446 912,577 Liabilities Total liabilities Net assets $1,332,604 $1,931,239 $2,822,812 $2,011,046 $2,972,639 $3,324,393 $3,858,446 $912,577 Accumulation units outstanding 85,932 114,099 159,640 87,961 138,191 128,686 106,444 31,091 Unit value of accumulation units $15.51 $16.93 $17.68 $22.86 $21.51 $25.83 $36.25 $29.35 Shares owned in each portfolio 98,858 138,044 198,231 196,583 166,721 167,899 228,041 66,806 Market value per share $13.48 $13.99 $14.24 $10.23 $17.83 $19.80 $16.92 $13.66 Cost of investments $1,040,292 $1,398,804 $1,782,697 $1,428,511 $2,876,662 $2,730,780 $3,052,417 $744,490

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

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Goldman Sachs Variable Insurance Trust PIMCO Variable Principal Variable Institutional Insurance Trust Contracts Funds, Inc. Class Shares, Administrative (PVC) Class 2 Shares continued Janus Henderson Class Shares Equity Funds VIT VIT VIT Foreign Balanced Enterprise VIT Forty Bond Portfolio Portfolio Portfolio Portfolio VIT Low Capital Equity Strategic (Service (Service (Institutional (U.S. Dollar- Duration Appreciation Income Growth Fund Shares) (3) Shares) (4) Shares) (5) Hedged) Portfolio Account Account Assets Investments, at fair value $5,028,306 $7,588,977 $999,313 $14,477,677 $2,934,264 $3,636,182 $1,041,202 $6,728,090 Dividends receivable Total assets 5,028,306 7,588,977 999,313 14,477,677 2,934,264 3,636,182 1,041,202 6,728,090 Liabilities Total liabilities Net assets $5,028,306 $7,588,977 $999,313 $14,477,677 $2,934,264 $3,636,182 $1,041,202 $6,728,090 Accumulation units outstanding 237,806 303,581 34,338 767,655 139,421 240,757 38,886 212,249 Unit value of accumulation units $21.14 $25.00 $29.10 $18.86 $21.05 $15.10 $26.78 $31.70 Shares owned in each portfolio 254,856 204,610 14,989 364,127 271,943 355,096 36,844 260,073 Market value per share $19.73 $37.09 $66.67 $39.76 $10.79 $10.24 $28.26 $25.87 Cost of investments $2,962,948 $5,554,265 $497,273 $10,677,339 $2,731,963 $3,551,839 $763,103 $4,508,294

(3) The Janus Aspen Balanced Portfolio subaccount changed its name to Janus Henderson VIT Balanced portfolio, effective June 5, 2017. (4) The Janus Enterprise Balanced Portfolio subaccount changed its name to Janus Henderson VIT Enterprise portfolio, effective June 5, 2017. (5) The Janus Forty Balanced Portfolio changed its name to Janus Henderson VIT Forty Balanced portfolio, effective June 5, 2017.

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

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Principal Variable Contracts Funds, Inc. (PVC) Class 2 Shares Principal Variable Contracts Funds, Inc. (PVC) Class 2 Shares Equity Funds, continued Strategic Asset Management (SAM) Portfolios SAM SAM SAM SAM SAM Conservative Conservative Flexible Strategic MidCap SmallCap Balanced Balanced Growth Income Growth Account Account Portfolio Portfolio Portfolio Portfolio Portfolio Assets Investments, at fair value $4,425,928 $1,531,219 $29,720,177 $6,531,528 $25,355,137 $6,912,237 $18,798,198 Dividends receivable Total assets 4,425,928 1,531,219 29,720,177 6,531,528 25,355,137 6,912,237 18,798,198 Liabilities Total liabilities Net assets $4,425,928 $1,531,219 $29,720,177 $6,531,528 $25,355,137 $6,912,237 $18,798,198 Accumulation units outstanding 31,961 130,261 1,191,201 299,710 924,076 348,046 646,165 Unit value of accumulation units $138.48 $11.76 $24.95 $21.79 $27.44 $19.86 $29.09 Shares owned in each portfolio 74,940 89,808 1,890,596 535,810 1,293,629 538,756 875,964 Market value per share $59.06 $17.05 $15.72 $12.19 $19.60 $12.83 $21.46 Cost of investments $3,030,463 $1,348,932 $27,946,848 $6,075,947 $20,983,112 $6,542,119 $15,644,428

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

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Calvert Variable Deutsche Variable Series II Class A Series, Inc. Deutsche Variable Series I Class A Shares Shares CROCI® Global Government & Government High VP SRI Mid Core Equity International Small Cap Agency Money Income Cap Portfolio Bond VIP VIP VIP VIP Securities VIP Market VIP VIP Investment income Dividend income $ 1,979 $109,781 $41,420 $300,868 $ $ 66,348 $ 4,020 $213,164 Total investment income 1,979 109,781 41,420 300,868 66,348 4,020 213,164 Expenses Mortality and expense risk 3,259 49,373 38,792 46,288 45,132 29,049 10,601 39,794 Administration charges 567 8,967 6,894 8,638 8,416 5,126 1,922 7,338 Total expenses 3,826 58,340 45,686 54,926 53,548 34,175 12,523 47,132 Net investment income (loss) (1,847 ) 51,441 (4,266 ) 245,942 (53,548 ) 32,173 (8,503 ) 166,032 Realized gains (losses) on investments Net realized gain (loss) on sale of investments 5,431 3,000 244,365 (12,024 ) 254,979 (16,806 ) 31,231 Capital gain distributions 236,255 370,632 Net realized gain (loss) on investments 5,431 3,000 480,620 (12,024 ) 625,611 (16,806 ) 31,231 Net unrealized appreciation (depreciation) of investments Beginning of period 23,182 (41,719 ) 1,358,680 (331,727 ) 604,587 (112,782 ) 13,397 End of period 47,347 100,839 1,496,031 232,229 748,536 (118,518 ) 47,591 Change in net unrealized appreciation (depreciation) of investments 24,165 142,558 137,351 563,956 143,949 (5,736 ) 34,194 Net increase (decrease) in net assets from operations $ 27,749 $196,999 $613,705 $797,874 $716,012 $ 9,631 $ (8,503 ) $231,457

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

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Dreyfus Sustainable U.S. Equity Portfolio, Deutsche Variable Dreyfus Variable Inc. Series II Class A Shares, Investment Fund Service Fidelity Variable Insurance Products continued Service Class Shares Class Shares (VIP) Funds Service Class Shares Small Mid Dreyfus Cap Opportunistic Quality Sustainable VIP Mid CROCI® Growth Small Cap Bond U.S. Equity VIP Growth VIP Index Cap U.S. VIP (1) VIP Portfolio Portfolio Portfolio (2) Portfolio 500 Portfolio Portfolio Investment income Dividend income $155,145 $317 $ $14,855 $ 1,863 $10,504 $172,452 $43,222 Total investment income 155,145 317 14,855 1,863 10,504 172,452 43,222 Expenses Mortality and expense risk 112,392 3,524 24,965 8,970 2,000 90,646 108,801 74,337 Administration charges 20,566 648 4,531 1,583 407 16,802 19,899 13,896 Total expenses 132,958 4,172 29,496 10,553 2,407 107,448 128,700 88,233 Net investment income (loss) 22,187 (3,855 ) (29,496 ) 4,302 (544 ) (96,944 ) 43,752 (45,011 ) Realized gains (losses) on investments Net realized gain (loss) on sale of investments 264,940 12,628 181,292 9,954 1,295 699,333 665,123 281,432 Capital gain distributions 16,490 27,309 13,206 601,166 27,559 321,765 Net realized gain (loss) on investments 264,940 29,118 208,601 9,954 14,501 1,300,499 692,682 603,197 Net unrealized appreciation (depreciation) of investments Beginning of period 520,895 110,629 902,573 48,770 12,801 3,348,500 3,860,510 1,713,733 End of period 2,218,081 146,094 1,199,263 57,371 24,728 4,500,532 4,911,814 2,389,028 Change in net unrealized appreciation (depreciation) of investments 1,697,186 35,465 296,690 8,601 11,927 1,152,032 1,051,304 675,295 Net increase (decrease) in net assets from operations $1,984,313 $60,728 $475,795 $22,857 $ 25,884 $2,355,587 $1,787,738 $1,233,481

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

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Fidelity VIP FundsManager Portfolios Service Class 2 Fidelity VIP Freedom Funds Service Class 2 Shares Shares VIP VIP VIP VIP VIP VIP VIP Freedom Freedom Freedom Freedom Freedom Freedom Freedom VIP 2005 2010 2015 2020 2025 2030 Income FundsManager Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio 20% Portfolio Investment income Dividend income $ 118 $3,140 $7,537 $18,965 $17,598 $13,826 $3,073 $ 5,978 Total investment income 118 3,140 7,537 18,965 17,598 13,826 3,073 5,978 Expenses Mortality and expense risk 82 2,866 6,495 16,306 14,353 12,656 2,444 5,974 Administration charges 17 492 1,169 3,016 2,479 2,354 459 1,085 Total expenses 99 3,358 7,664 19,322 16,832 15,010 2,903 7,059 Net investment income (loss) 19 (218 ) (127 ) (357 ) 766 (1,184 ) 170 (1,081 ) Realized gains (losses) on investments Net realized gain (loss) on sale of investments 494 13,013 8,060 34,098 41,149 49,848 455 6,548 Capital gain distributions 137 5,057 15,251 41,861 34,854 43,381 1,962 3,075 Net realized gain (loss) on investments 631 18,070 23,311 75,959 76,003 93,229 2,417 9,623 Net unrealized appreciation (depreciation) of investments Beginning of period 512 60,609 122,065 246,291 215,113 193,477 11,470 17,683 End of period 632 69,334 171,632 378,283 320,840 308,308 24,392 39,872 Change in net unrealized appreciation (depreciation) of investments 120 8,725 49,567 131,992 105,727 114,831 12,922 22,189 Net increase (decrease) in net assets from operations $ 770 $26,577 $72,751 $207,594 $182,496 $206,876 $15,509 $ 30,731

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

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Goldman Sachs Franklin Templeton Variable Variable Insurance Fidelity VIP FundsManager Portfolios Insurance Products Trust Trust Institutional Service Class 2 Shares, continued Class 2 Shares Class Shares Small Small Cap VIP VIP VIP Developing Mid Cap Small Cap Mid Cap Equity FundsManager FundsManager FundsManager Markets Growth Value VIP Value Insights 50% Portfolio 70% Portfolio 85% Portfolio VIP Fund VIP Fund Fund Fund Fund Investment income Dividend income $ 13,046 $ 14,164 $16,217 $18,197 $ $15,877 $27,645 $4,775 Total investment income 13,046 14,164 16,217 18,197 15,877 27,645 4,775 Expenses Mortality and expense risk 13,404 18,400 30,338 18,877 31,006 32,055 40,964 8,918 Administration charges 2,625 3,549 5,180 3,712 5,748 6,164 7,506 1,722 Total expenses 16,029 21,949 35,518 22,589 36,754 38,219 48,470 10,640 Net investment income (loss) (2,983 ) (7,785 ) (19,301 ) (4,392 ) (36,754 ) (22,342 ) (20,825 ) (5,865 ) Realized gains (losses) on investments Net realized gain (loss) on sale of investments 71,018 31,753 31,792 59,943 34,572 29,817 207,691 42,030 Capital gain distributions 8,071 12,803 25,217 277,217 217,153 207,603 97,781 Net realized gain (loss) on investments 79,089 44,556 57,009 59,943 311,789 246,970 415,294 139,811 Net unrealized appreciation (depreciation) of investments Beginning of period 207,468 284,767 581,076 35,336 (151,127) 532,425 850,905 216,617 End of period 292,312 532,436 1,040,115 582,534 95,976 593,613 806,029 168,087 Change in net unrealized appreciation (depreciation) of investments 84,844 247,669 459,039 547,198 247,103 61,188 (44,876 ) (48,530 ) Net increase (decrease) in net assets from operations $ 160,950 $ 284,440 $496,747 $602,749 $522,138 $285,816 $349,593 $85,416

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

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Goldman Sachs Variable Insurance PIMCO Variable Principal Variable Trust Institutional Insurance Trust Contracts Funds, Inc. Class Shares, Administrative (PVC) Class 2 Shares continued Janus Henderson Class Shares Equity Funds VIT VIT VIT Foreign Balanced Enterprise VIT Forty Bond Portfolio Portfolio Portfolio Portfolio VIT Low Capital Equity Strategic Growth (Service (Service (Institutional (U.S. Dollar- Duration Appreciation Income Fund Shares) (3) Shares) (4) Shares) (5) Hedged) Portfolio Account Account Investment income Dividend income $ 24,232 $103,341 $4,997 $ $140,849 $50,020 $10,134 $126,558 Total investment income 24,232 103,341 4,997 140,849 50,020 10,134 126,558 Expenses Mortality and expense risk 51,670 80,797 9,950 152,964 34,252 40,820 10,790 66,423 Administration charges 9,505 15,121 1,849 28,101 6,257 7,413 1,941 12,394 Total expenses 61,175 95,918 11,799 181,065 40,509 48,233 12,731 78,817 Net investment income (loss) (36,943 ) 7,423 (6,802 ) (181,065 ) 100,340 1,787 (2,597 ) 47,741 Realized gains (losses) on investments Net realized gain (loss) on sale of investments 410,974 451,221 66,102 810,954 71,112 13,559 18,264 239,393 Capital gain distributions 209,981 14,671 58,118 746,618 303,119 Net realized gain (loss) on investments 620,955 465,892 124,220 1,557,572 71,112 13,559 18,264 542,512 Net unrealized appreciation (depreciation) of investments Beginning of period 1,450,675 1,333,971 409,763 1,685,283 328,239 97,491 124,912 1,704,285 End of period 2,065,359 2,034,712 502,040 3,800,338 202,302 84,342 278,099 2,219,795 Change in net unrealized appreciation (depreciation) of investments 614,684 700,741 92,277 2,115,055 (125,937 ) (13,149) 153,187 515,510 Net increase (decrease) in net assets from operations $ 1,198,696 $1,174,056 $209,695 $3,491,562 $45,515 $2,197 $168,854 $1,105,763

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Principal Variable Contracts Funds, Inc. (PVC) Class 2 Shares Equity Funds, Principal Variable Contracts Funds, Inc. (PVC) Class 2 continued Shares Strategic Asset Management (SAM) Portfolios SAM SAM SAM SAM SAM Conservative Conservative Flexible Strategic MidCap SmallCap Balanced Balanced Growth Income Growth Account Account Portfolio Portfolio Portfolio Portfolio Portfolio Investment income Dividend income $13,844 $2,162 $559,631 $165,018 $326,903 $213,983 $229,144 Total investment income 13,844 2,162 559,631 165,018 326,903 213,983 229,144 Expenses Mortality and expense risk 42,497 14,644 319,418 69,328 268,265 73,128 204,248 Administration charges 8,299 2,877 58,571 13,089 49,072 14,251 37,300 Total expenses 50,796 17,521 377,989 82,417 317,337 87,379 241,548 Net investment income (loss) (36,952 ) (15,359 ) 181,642 82,601 9,566 126,604 (12,404 ) Realized gains (losses) on investments Net realized gain (loss) on sale of investments 168,266 3,588 106,235 61,905 513,819 71,863 463,172 Capital gain distributions 279,142 689,392 68,334 533,152 49,884 516,250 Net realized gain (loss) on investments 447,408 3,588 795,627 130,239 1,046,971 121,747 979,422 Net unrealized appreciation (depreciation) of investments Beginning of period 925,464 14,555 (954,263 ) 54,127 1,365,166 142,867 658,918 End of period 1,395,464 182,287 1,773,328 455,581 4,372,025 370,118 3,153,769 Change in net unrealized appreciation (depreciation) of investments 470,000 167,732 2,727,591 401,454 3,006,859 227,251 2,494,851 Net increase (decrease) in net assets from operations $880,456 $155,961 $3,704,860 $614,294 $4,063,396 $475,602 $3,461,869

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

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Calvert Variable Series, Inc. Deutsche Variable Series I Class A Shares CROCI® International VP SRI Mid Cap Portfolio Bond VIP Core Equity VIP VIP 2016 as 2016 as 2016 as 2016 as 2017 revised 2017 revised 2017 revised 2017 revised Increase (decrease) in net assets from operations Net investment income (loss) $(1,847 ) $(3,862 ) $51,441 $177,646 $(4,266 ) $3,339 $245,942 $373,796 Net realized gain (loss) from investment transactions 5,431 49,754 3,000 5,480 480,620 476,171 (12,024 ) (39,104 ) Change in net unrealized appreciation (depreciation) of investments 24,165 (30,388 ) 142,558 20,657 137,351 (193,862 ) 563,956 (365,727 ) Net increase (decrease) in net assets from operations 27,749 15,504 196,999 203,783 613,705 285,648 797,874 (31,035 ) Increase (decrease) in net assets from contract transactions Payments received from contract owners 750 800 45,224 34,800 21,587 27,491 44,927 37,826 Transfers for contract benefits and terminations (19,152 ) (33,897 ) (503,678 ) (392,399 ) (414,282 ) (285,552 ) (308,966 ) (318,023 ) Contract maintenance charges (71 ) (102 ) (1,812 ) (2,147 ) (1,634 ) (1,929 ) (2,165 ) (2,359 ) Transfers between subaccounts (including fixed account), net 9 (3,110 ) 305,664 419,363 3,040 (86,794 ) (13,186 ) 26,524 Net increase (decrease) in net assets from contract transactions (18,464 ) (36,309 ) (154,602 ) 59,617 (391,289 ) (346,784 ) (279,390 ) (256,032 ) Total increase (decrease) in net assets 9,285 (20,805 ) 42,397 263,400 222,416 (61,136 ) 518,484 (287,067 ) Net assets Beginning of period 280,621 301,426 4,569,125 4,305,725 3,407,348 3,468,484 4,111,365 4,398,432 End of period $289,906 $280,621 $4,611,522 $4,569,125 $3,629,764 $3,407,348 $4,629,849 $4,111,365 Analysis of increase (decrease) in units outstanding Units issued 43 426 22,759 39,763 5,478 1,942 39,229 26,341 Units redeemed (941 ) (2,423 ) (33,165 ) (34,941 ) (26,960 ) (23,512 ) (81,088 ) (67,429 )

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Increase (decrease) in units outstanding (898 ) (1,997 ) (10,406 ) 4,822 (21,482 ) (21,570 ) (41,859 ) (41,088 ) Beginning units 14,587 16,584 304,201 299,379 197,271 218,841 636,902 677,990 Ending units 13,689 14,587 293,795 304,201 175,789 197,271 595,043 636,902

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

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Farmers Annuity Separate Account A of Farmers New World Life Insurance Company (A wholly owned subsidiary of Farmers Group, Inc.) Statements of Changes in Net Assets Years Ended December 31, 2017 and 2016

Deutsche Variable Series I Class A Shares, continued Deutsche Variable Series II Class A Shares Government & Agency Government Money Global Small Cap VIP Securities VIP Market VIP High Income VIP 2016 as 2016 as 2016 as 2016 as 2017 revised 2017 revised 2017 revised 2017 revised Increase (decrease) in net assets from operations Net investment income (loss) $(53,548 ) $(37,602 ) $32,173 $50,845 $(8,503 ) $(12,038 ) $166,032 $176,513 Net realized gain (loss) from investment transactions 625,611 683,618 (16,806 ) (18,623 ) 31,231 (22,232 ) Change in net unrealized appreciation (depreciation) of investments 143,949 (642,707 ) (5,736 ) (33,125 ) 34,194 241,527 Net increase (decrease) in net assets from operations 716,012 3,309 9,631 (903 ) (8,503 ) (12,038 ) 231,457 395,808 Increase (decrease) in net assets from contract transactions Payments received from contract owners 38,106 44,268 10,326 12,018 14,083 13,734 23,637 36,470 Transfers for contract benefits and terminations (515,739 ) (419,550 ) (260,754 ) (386,372 ) (423,075 ) (141,524 ) (366,394 ) (328,636 ) Contract maintenance charges (1,852 ) (2,139 ) (849 ) (1,042 ) (554 ) (649 ) (1,386 ) (1,568 ) Transfers between subaccounts (including fixed account), net (203,227 ) (92,108 ) 82,486 (36,585 ) 24,418 397,066 114,134 (126,629 ) Net increase (decrease) in net assets from contract transactions (682,712 ) (469,529 ) (168,791 ) (411,981 ) (385,128 ) 268,627 (230,009 ) (420,363 ) Total increase (decrease) in net assets 33,300 (466,220 ) (159,160 ) (412,884 ) (393,631 ) 256,589 1,448 (24,555 )

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Net assets Beginning of period 4,136,724 4,602,944 2,646,131 3,059,015 1,213,838 957,249 3,635,374 3,659,929 End of period $4,170,024 $4,136,724 $2,486,971 $2,646,131 $820,207 $1,213,838 $3,636,822 $3,635,374 Analysis of increase (decrease) in units outstanding Units issued 6,958 5,889 7,632 8,233 4,209 41,073 199,254 6,216 Units redeemed (36,236 ) (28,491 ) (17,519 ) (32,340 ) (41,416 ) (15,006 ) (209,088 ) (27,098 ) Increase (decrease) in units outstanding (29,278 ) (22,602 ) (9,887 ) (24,107 ) (37,207 ) 26,067 (9,834 ) (20,882 ) Beginning units 195,290 217,892 157,046 181,153 115,642 89,575 172,712 193,594 Ending units 166,012 195,290 147,159 157,046 78,435 115,642 162,878 172,712

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

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Deutsche Variable Series II Class A Shares, continued Dreyfus Variable Investment Fund Service Class Shares CROCI® U.S. VIP (1) Small Mid Cap Growth VIP Opportunistic Small Cap Portfolio Quality Bond Portfolio 2016 as 2016 as 2016 as 2016 as 2017 revised 2017 revised 2017 revised 2017 revised Increase (decrease) in net assets from operations Net investment income (loss) $22,187 $(27,898 ) $(3,855 ) $(3,721 ) $(29,496 ) $(27,434 ) $4,302 $1,739 Net realized gain (loss) from investment transactions 264,940 631,566 29,118 61,268 208,601 359,402 9,954 12,337 Change in net unrealized appreciation (depreciation) of investments 1,697,186 (1,251,235) 35,465 (36,395 ) 296,690 (35,893 ) 8,601 (13,449 ) Net increase (decrease) in net assets from operations 1,984,313 (647,567 ) 60,728 21,152 475,795 296,075 22,857 627 Increase (decrease) in net assets from contract transactions Payments received from contract owners 89,858 91,382 1,282 1,597 11,581 12,426 5,882 5,262 Transfers for contract benefits and terminations (1,001,122 ) (953,820 ) (19,015 ) (15,510 ) (221,973 ) (229,601 ) (89,920 ) (90,409 ) Contract maintenance charges (5,158 ) (5,828 ) (215 ) (244 ) (903 ) (1,014 ) (471 ) (526 ) Transfers between subaccounts (including fixed account), net (184,587 ) 16,078 603 (2,796 ) (42,382 ) (163,005 ) 40,250 (2,228 ) Net increase (decrease) in net assets from contract transactions (1,101,009 ) (852,188 ) (17,345 ) (16,953 ) (253,677 ) (381,194 ) (44,259 ) (87,901 ) Total increase (decrease) in net assets 883,304 (1,499,755) 43,383 4,199 222,118 (85,119 ) (21,402 ) (87,274 ) Net assets Beginning of period 9,799,543 11,299,298 305,948 301,749 2,246,365 2,331,484 802,641 889,915 End of period $10,682,847 $9,799,543 $349,331 $305,948 $2,468,483 $2,246,365 $781,239 $802,641

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Analysis of increase (decrease) in units outstanding Units issued 12,036 18,203 331 452 5,032 4,476 3,646 2,511 Units redeemed (49,065 ) (50,131 ) (2,607 ) (3,024 ) (19,514 ) (31,151 ) (6,558 ) (8,392 ) Increase (decrease) in units outstanding (37,029 ) (31,928 ) (2,276 ) (2,572 ) (14,482 ) (26,675 ) (2,912 ) (5,881 ) Beginning units 363,157 395,085 42,155 44,727 136,829 163,504 54,722 60,603 Ending units 326,128 363,157 39,879 42,155 122,347 136,829 51,810 54,722

(1) The Deutsche Large Cap Value VIP-A subaccount changed its name to Deutsche CROCI® U.S. VIP-A, effective May 1, 2017.

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

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Farmers Annuity Separate Account A of Farmers New World Life Insurance Company (A wholly owned subsidiary of Farmers Group, Inc.) Statements of Changes in Net Assets Years Ended December 31, 2017 and 2016

Dreyfus Sustainable U.S. Equity Portfolio, Inc. Service Class Shares Fidelity Variable Insurance Products (VIP) Funds Service Class Shares Dreyfus Sustainable U.S. Equity Portfolio (2) VIP Growth Portfolio VIP Index 500 Portfolio VIP Mid Cap Portfolio 2016 as 2016 as 2016 as 2017 2016 as revised 2017 revised 2017 revised 2017 revised Increase (decrease) in net assets from operations Net investment income (loss) $ (544 ) $ (208 ) $(96,944 ) $(96,270 ) $43,752 $5,561 $(45,011 ) $(54,393 ) Net realized gain (loss) from investment transactions 14,501 22,406 1,300,499 1,408,971 692,682 766,360 603,197 584,734 Change in net unrealized appreciation (depreciation) of investments 11,927 (6,327 ) 1,152,032 (1,377,566) 1,051,304 22,443 675,295 135,513 Net increase (decrease) in net assets from operations 25,884 15,871 2,355,587 (64,865 ) 1,787,738 794,364 1,233,481 665,854 Increase (decrease) in net assets from contract transactions Payments received from contract owners 6,751 1,370 145,662 62,057 83,739 78,271 39,735 47,031 Transfers for contract benefits and terminations (11,792 ) (6,160 ) (591,346 ) (757,860 ) (797,899 ) (735,875 ) (641,402 ) (354,870 ) Contract maintenance charges (113 ) (155 ) (3,517 ) (3,762 ) (3,754 ) (4,202 ) (2,497 ) (2,775 ) Transfers between subaccounts (including fixed account), net 4,255 (24,482 ) (10,614 ) (193,595 ) 2,174,757 (583,493 ) 9,965 (150,915 ) Net increase (decrease) in net assets from contract transactions (899 ) (29,427 ) (459,815 ) (893,160 ) 1,456,843 (1,245,299) (594,199 ) (461,529 ) Total increase (decrease) in net assets 24,985 (13,556 ) 1,895,772 (958,025 ) 3,244,581 (450,935 ) 639,282 204,325

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Net assets Beginning of period 193,504 207,060 7,310,449 8,268,474 8,122,003 8,572,938 6,815,412 6,611,087 End of period $ 218,489 $ 193,504 $9,206,221 $7,310,449 $11,366,584 $8,122,003 $7,454,694 $6,815,412 Analysis of increase (decrease) in units outstanding Units issued 737 636 31,422 13,182 121,032 7,991 3,723 5,406 Units redeemed (853 ) (2,825 ) (57,078 ) (71,367 ) (49,869 ) (76,549 ) (19,222 ) (19,084 ) Increase (decrease) in units outstanding (116 ) (2,189 ) (25,656 ) (58,185 ) 71,163 (68,558 ) (15,499 ) (13,678 ) Beginning units 13,225 15,414 466,151 524,336 416,768 485,326 187,024 200,702 Ending units 13,109 13,225 440,495 466,151 487,931 416,768 171,525 187,024

(2) The Dreyfus Socially Responsible Growth subaccount changed its name to Dreyfus Sustainable U.S. Equity Portfolio, effective May 1, 2017.

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

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Farmers Annuity Separate Account A of Farmers New World Life Insurance Company (A wholly owned subsidiary of Farmers Group, Inc.) Statements of Changes in Net Assets Years Ended December 31, 2017 and 2016

Fidelity VIP Freedom Funds Service Class 2 Shares VIP Freedom 2005 Portfolio VIP Freedom 2010 Portfolio VIP Freedom 2015 Portfolio VIP Freedom 2020 Portfolio 2016 as 2016 as 2016 as 2016 as 2017 revised 2017 revised 2017 revised 2017 revised Increase (decrease) in net assets from operations Net investment income (loss) $ 19 $ (2 ) $(218 ) $(361 ) $(127 ) $(203 ) $(357 ) $75 Net realized gain (loss) from investment transactions 631 5,419 18,070 15,448 23,311 21,869 75,959 60,258 Change in net unrealized appreciation (depreciation) of investments 120 (6,615 ) 8,725 (5,011 ) 49,567 1,451 131,992 4,084 Net increase (decrease) in net assets from operations 770 (1,198 ) 26,577 10,076 72,751 23,117 207,594 64,417 Increase (decrease) in net assets from contract transactions Payments received from contract owners 3,250 10,360 360 Transfers for contract benefits and terminations (1,931 ) (36,228 ) (43,816 ) (31,475 ) (19,790 ) (20,633 ) (110,207 ) (65,808 ) Contract maintenance charges (30 ) (75 ) (92 ) (122 ) (337 ) (461 ) Transfers between subaccounts (including fixed account), net 1,500 1,377 3 (55 ) 1,258 1,160 129 41,359 Net increase (decrease) in net assets from contract transactions (431 ) (34,851 ) (43,843 ) (31,605 ) (15,374 ) (19,595 ) (100,055 ) (24,550 ) Total increase (decrease) in net assets 339 (36,049 ) (17,266 ) (21,529 ) 57,377 3,522 107,539 39,867 Net assets Beginning of period 7,696 43,745 265,336 286,865 553,647 550,125 1,441,028 1,401,161 End of period $ 8,035 $ 7,696 $248,070 $265,336 $611,024 $553,647 $1,548,567 $1,441,028 Analysis of increase (decrease) in units outstanding Units issued 109 120 114 466 88 1,428 3,201 Units redeemed (136 ) (2,994 ) (3,087 ) (2,458 ) (1,501 ) (1,484 ) (7,981 ) (4,743 ) Increase (decrease) in units outstanding (27 ) (2,874 ) (3,087 ) (2,344 ) (1,035 ) (1,396 ) (6,553 ) (1,542 )

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Beginning units 588 3,462 19,290 21,634 39,698 41,094 102,710 104,252 Ending units 561 588 16,203 19,290 38,663 39,698 96,157 102,710

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

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Fidelity VIP FundsManager Portfolios Fidelity VIP Freedom Funds Service Class 2 Shares, continued Service Class 2 Shares VIP Freedom 2025 Portfolio VIP Freedom 2030 Portfolio VIP Freedom Income Portfolio VIP FundsManager 20% Portfolio 2016 as 2016 as 2016 as 2017 revised 2017 revised 2017 revised 2017 2016 as revised Increase (decrease) in net assets from operations Net investment income (loss) $766 $(655 ) $(1,184 ) $(444 ) $ 170 $ 5 $ (1,081 ) $ (240 ) Net realized gain (loss) from investment transactions 76,003 78,839 93,229 58,690 2,417 2,536 9,623 11,186 Change in net unrealized appreciation (depreciation) of investments 105,727 (30,918 ) 114,831 (5,269 ) 12,922 4,576 22,189 (4,359 ) Net increase (decrease) in net assets from operations 182,496 47,266 206,876 52,977 15,509 7,117 30,731 6,587 Increase (decrease) in net assets from contract transactions Payments received from contract owners 63,757 9,000 34,613 27,050 44,280 3,600 25,740 Transfers for contract benefits and terminations (66,664 ) (171,482 ) (161,615 ) (68,019 ) (1,280 ) (1,201 ) (58,616 ) (67,326 ) Contract maintenance charges (226 ) (281 ) (580 ) (685 ) (57 ) (56 ) (88 ) (100 ) Transfers between subaccounts (including fixed account), net 164,827 58,254 68,236 16,313 4,128 474 11,117 160,861 Net increase (decrease) in net assets from contract transactions 161,694 (104,509 ) (59,346 ) (25,341 ) 2,791 43,497 (43,987 ) 119,175 Total increase (decrease) in net assets 344,190 (57,243 ) 147,530 27,636 18,300 50,614 (13,256 ) 125,762 Net assets

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Beginning of period 1,146,907 1,204,150 1,123,763 1,096,127 219,819 169,205 542,098 416,336 End of period $1,491,097 $1,146,907 $1,271,293 $1,123,763 $ 238,119 $ 219,819 $ 528,842 $ 542,098 Analysis of increase (decrease) in units outstanding Units issued 17,537 4,839 6,522 3,355 359 3,922 1,216 15,717 Units redeemed (7,960 ) (12,571 ) (10,484 ) (5,277 ) (137 ) (215 ) (4,699 ) (5,669 ) Increase (decrease) in units outstanding 9,577 (7,732 ) (3,962 ) (1,922 ) 222 3,707 (3,483 ) 10,048 Beginning units 78,698 86,430 77,640 79,562 17,958 14,251 45,107 35,059 Ending units 88,275 78,698 73,678 77,640 18,180 17,958 41,624 45,107

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

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Franklin Templeton Variable Insurance Fidelity VIP FundsManager Portfolios Service Class 2 Shares, continued Products Trust Class 2 Shares VIP FundsManager 50% Portfolio VIP FundsManager 70% Portfolio VIP FundsManager 85% Portfolio Developing Markets VIP Fund 2016 as 2016 as 2016 as 2016 as 2017 revised 2017 revised 2017 revised 2017 revised Increase (decrease) in net assets from operations Net investment income (loss) $(2,983 ) $(492 ) $(7,785 ) $(6,536 ) $(19,301 ) $(14,807 ) $ (4,392 ) $ (6,662 ) Net realized gain (loss) from investment transactions 79,089 26,695 44,556 614,324 57,009 196,321 59,943 (1,432 ) Change in net unrealized appreciation (depreciation) of investments 84,844 12,588 247,669 (693,065 ) 459,039 (85,143 ) 547,198 256,809 Net increase (decrease) in net assets from operations 160,950 38,791 284,440 (85,277 ) 496,747 96,371 602,749 248,715 Increase (decrease) in net assets from contract transactions Payments received from contract owners 2,915 990 31,844 3,680 2,600 7,800 9,077 14,864 Transfers for contract benefits and terminations (345,903 ) (32,002 ) (70,270 ) (1,687,521 ) (53,454 ) (248,539 ) (161,292 ) (92,951 ) Contract maintenance charges (291 ) (331 ) (448 ) (630 ) (214 ) (240 ) (1,105 ) (1,205 ) Transfers between subaccounts (including fixed account), net 32,281 318,503 36,983 (89,926 ) 6,471 3,698 (138,715 ) (59,577 ) Net increase (decrease) in net assets from contract transactions (310,998 ) 287,160 (1,891 ) (1,774,397 ) (44,597 ) (237,281 ) (292,035 ) (138,869 ) Total increase (decrease) in net assets (150,048 ) 325,951 282,549 (1,859,674 ) 452,150 (140,910 ) 310,714 109,846 Net assets

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Beginning of period 1,482,652 1,156,701 1,648,690 3,508,364 2,370,662 2,511,572 1,700,332 1,590,486 End of period $1,332,604 $1,482,652 $1,931,239 $1,648,690 $2,822,812 $2,370,662 $ 2,011,046 $ 1,700,332 Analysis of increase (decrease) in units outstanding Units issued 12,437 24,636 4,215 16,338 548 811 1,013 1,989 Units redeemed (34,917 ) (2,857 ) (4,580 ) (153,518 ) (3,461 ) (17,173 ) (16,399 ) (10,839 ) Increase (decrease) in units outstanding (22,480 ) 21,779 (365 ) (137,180 ) (2,913 ) (16,362 ) (15,386 ) (8,850 ) Beginning units 108,412 86,633 114,464 251,644 162,553 178,915 103,347 112,197 Ending units 85,932 108,412 114,099 114,464 159,640 162,553 87,961 103,347

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

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Farmers Annuity Separate Account A of Farmers New World Life Insurance Company (A wholly owned subsidiary of Farmers Group, Inc.) Statements of Changes in Net Assets Years Ended December 31, 2017 and 2016

Franklin Templeton Variable Insurance Products Trust Goldman Sachs Variable Insurance Trust Class 2 Shares, continued Institutional Class Shares Small Mid Cap Growth Small Cap Equity VIP Fund Small Cap Value VIP Fund Mid Cap Value Fund Insights Fund 2016 as 2016 as 2016 as 2016 as 2017 revised 2017 revised 2017 revised 2017 revised Increase (decrease) in net assets from operations Net investment income (loss) $(36,754 ) $(35,587 ) $(22,342 ) $(11,937 ) $(20,825 ) $2,855 $(5,865 ) $(620 ) Net realized gain (loss) from investment transactions 311,789 329,912 246,970 466,766 415,294 158,797 139,811 52,674 Change in net unrealized appreciation (depreciation) of investments 247,103 (227,949 ) 61,188 231,896 (44,876 ) 268,438 (48,530 ) 110,831 Net increase (decrease) in net assets from operations 522,138 66,376 285,816 686,725 349,593 430,090 85,416 162,885 Increase (decrease) in net assets from contract transactions Payments received from contract owners 27,742 29,856 11,831 21,093 26,048 31,916 13,269 5,545 Transfers for contract benefits and terminations (322,891 ) (138,280 ) (77,115 ) (86,459 ) (417,288 ) (325,394 ) (82,053 ) (73,559 ) Contract maintenance charges (913 ) (1,060 ) (683 ) (785 ) (2,109 ) (2,379 ) (501 ) (543 ) Transfers between subaccounts (including fixed account), net (47,305 ) (131,774 ) 40,927 (264,315 ) 51,903 (111,728 ) 2,031 (29,402 ) Net increase (decrease) in net assets from contract transactions (343,367 ) (241,258 ) (25,040 ) (330,466 ) (341,446 ) (407,585 ) (67,254 ) (97,959 ) Total increase (decrease) in net assets 178,771 (174,882 ) 260,776 356,259 8,147 22,505 18,162 64,926 Net assets Beginning of period 2,793,868 2,968,750 3,063,617 2,707,358 3,850,299 3,827,794 894,415 829,489 End of period $2,972,639 $2,793,868 $3,324,393 $3,063,617 $3,858,446 $3,850,299 $912,577 $894,415 Analysis of increase (decrease) in units outstanding Units issued 5,903 6,416 3,228 4,506 5,824 2,896 1,551 584 Units redeemed (23,435 ) (20,875 ) (4,184 ) (22,337 ) (16,014 ) (16,194 ) (4,067 ) (4,921 ) Increase (decrease) in units outstanding (17,532 ) (14,459 ) (956 ) (17,831 ) (10,190 ) (13,298 ) (2,516 ) (4,337 )

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Beginning units 155,723 170,182 129,642 147,473 116,634 129,932 33,607 37,944 Ending units 138,191 155,723 128,686 129,642 106,444 116,634 31,091 33,607

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

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Farmers Annuity Separate Account A of Farmers New World Life Insurance Company (A wholly owned subsidiary of Farmers Group, Inc.) Statements of Changes in Net Assets Years Ended December 31, 2017 and 2016

Goldman Sachs Variable Insurance Trust Institutional Class Shares, continued Janus Henderson VIT Balanced Portfolio VIT Enterprise Portfolio VIT Forty Portfolio Strategic Growth Fund (Service Shares) (3) (Service Shares) (4) (Institutional Shares) (5) 2017 2016 as revised 2017 2016 as revised 2017 2016 as revised 2017 2016 as revised Increase (decrease) in net assets from operations Net investment income (loss) $(36,943 ) $(30,425 ) $7,423 $54,202 $(6,802 ) $ (4,919 ) $(181,065 ) $(59,204 ) Net realized gain (loss) from investment transactions 620,955 301,318 465,892 370,861 124,220 139,218 1,557,572 2,121,302 Change in net unrealized appreciation (depreciation) of investments 614,684 (251,853 ) 700,741 (191,138 ) 92,277 (47,078 ) 2,115,055 (1,971,804 ) Net increase (decrease) in net assets from operations 1,198,696 19,040 1,174,056 233,925 209,695 87,221 3,491,562 90,294 Increase (decrease) in net assets from contract transactions Payments received from contract owners 30,616 33,042 23,382 37,977 15,376 13,166 83,229 91,357 Transfers for contract benefits and terminations (402,386 ) (440,090 ) (764,965 ) (1,034,246 ) (74,985 ) (60,296 ) (1,437,659 ) (1,201,732 ) Contract maintenance charges (2,665 ) (2,910 ) (1,254 ) (1,470 ) (514 ) (555 ) (6,064 ) (6,814 ) Transfers between subaccounts (including fixed account), net (139,927 ) (95,144 ) (677,327 ) (49,856 ) (8,829 ) (34,979 ) (483,501 ) (203,962 ) Net increase (decrease) in net assets from contract transactions (514,362 ) (505,102 ) (1,420,164) (1,047,595 ) (68,952 ) (82,664 ) (1,843,995 ) (1,321,151 )

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Total increase (decrease) in net assets 684,334 (486,062 ) (246,108 ) (813,670 ) 140,743 4,557 1,647,567 (1,230,857 ) Net assets Beginning of period 4,343,972 4,830,034 7,835,085 8,648,755 858,570 854,013 12,830,110 14,060,967 End of period $5,028,306 $4,343,972 $7,588,977 $7,835,085 $999,313 $ 858,570 $14,477,677 $12,830,110 Analysis of increase (decrease) in units outstanding Units issued 9,307 4,198 10,410 8,608 794 1,128 20,942 18,556 Units redeemed (36,756 ) (35,906 ) (72,256 ) (58,647 ) (3,498 ) (4,882 ) (129,135 ) (110,718 ) Increase (decrease) in units outstanding (27,449 ) (31,708 ) (61,846 ) (50,039 ) (2,704 ) (3,754 ) (108,193 ) (92,162 ) Beginning units 265,255 296,963 365,427 415,466 37,042 40,796 875,848 968,010 Ending units 237,806 265,255 303,581 365,427 34,338 37,042 767,655 875,848

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

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Farmers Annuity Separate Account A of Farmers New World Life Insurance Company (A wholly owned subsidiary of Farmers Group, Inc.) Statements of Changes in Net Assets Years Ended December 31, 2017 and 2016

PIMCO Variable Insurance Trust Administrative Principal Variable Contracts Funds, Inc. (PVC) Class 2 Class Shares Shares Equity Funds VIT Foreign Bond Portfolio (U.S. Dollar-Hedged) VIT Low Duration Portfolio Capital Appreciation Account Equity Income Account 2017 2016 as revised 2017 2016 as revised 2017 2016 as revised 2017 2016 as revised Increase (decrease) in net assets from operations Net investment income (loss) $100,340 $4,384 $1,787 $7,700 $(2,597 ) $ (3,569 ) $47,741 $72,591 Net realized gain (loss) from investment transactions 71,112 78,514 13,559 19,370 18,264 19,291 542,512 512,142 Change in net unrealized appreciation (depreciation) of investments (125,937 ) 87,983 (13,149 ) (23,717 ) 153,187 54,638 515,510 194,575 Net increase (decrease) in net assets from operations 45,515 170,881 2,197 3,353 168,854 70,360 1,105,763 779,308 Increase (decrease) in net assets from contract transactions Payments received from contract owners 16,545 25,990 18,660 16,883 3,180 3,928 65,438 74,080 Transfers for contract benefits and terminations (343,788 ) (334,732 ) (393,407 ) (371,836 ) (81,025 ) (76,843 ) (556,218 ) (489,323 ) Contract maintenance charges (1,321 ) (1,572 ) (1,442 ) (1,732 ) (309 ) (315 ) (1,834 ) (2,101 ) Transfers between subaccounts (including fixed account), net (53,086 ) (250,563 ) 194,528 (109,633 ) 6,612 (262 ) (27,301 ) (160,170 ) Net increase (decrease) in net assets from contract transactions (381,650 ) (560,877 ) (181,661 ) (466,318 ) (71,542 ) (73,492 ) (519,915 ) (577,514 ) Total increase (decrease) in net assets (336,135 ) (389,996 ) (179,464 ) (462,965 ) 97,312 (3,132 ) 585,848 201,794

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Net assets Beginning of period 3,270,399 3,660,395 3,815,646 4,278,611 943,890 947,022 6,142,242 5,940,448 End of period $2,934,264 $3,270,399 $3,636,182 $3,815,646 $1,041,202 $ 943,890 $6,728,090 $6,142,242 Analysis of increase (decrease) in units outstanding Units issued 7,449 3,213 13,900 7,439 544 496 3,337 3,689 Units redeemed (25,932 ) (30,897 ) (25,875 ) (38,162 ) (3,509 ) (3,693 ) (22,271 ) (27,423 ) Increase (decrease) in units outstanding (18,483 ) (27,684 ) (11,975 ) (30,723 ) (2,965 ) (3,197 ) (18,934 ) (23,734 ) Beginning units 157,904 185,588 252,732 283,455 41,851 45,048 231,183 254,917 Ending units 139,421 157,904 240,757 252,732 38,886 41,851 212,249 231,183

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

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Farmers Annuity Separate Account A of Farmers New World Life Insurance Company (A wholly owned subsidiary of Farmers Group, Inc.) Statements of Changes in Net Assets Years Ended December 31, 2017 and 2016

Principal Variable Contracts Funds, Inc. (PVC) Class 2 Principal Variable Contracts Funds, Inc. (PVC) Class 2 Shares Equity Funds, continued Shares Strategic Asset Management (SAM) Portfolios SAM Conservative Balanced MidCap Account SmallCap Account SAM Balanced Portfolio Portfolio 2017 2016 as revised 2017 2016 as revised 2017 2016 as revised 2017 2016 as revised Increase (decrease) in net assets from operations Net investment income (loss) $(36,952 ) $(41,556 ) $(15,359 ) $(14,965 ) $181,642 $173,182 $82,601 $67,719 Net realized gain (loss) from investment transactions 447,408 842,234 3,588 44,841 795,627 1,751,235 130,239 269,837 Change in net unrealized appreciation (depreciation) of investments 470,000 (498,553 ) 167,732 169,381 2,727,591 (414,645 ) 401,454 (30,423 ) Net increase (decrease) in net assets from operations 880,456 302,125 155,961 199,257 3,704,860 1,509,772 614,294 307,133 Increase (decrease) in net assets from contract transactions Payments received from contract owners 21,973 17,416 5,279 7,297 180,450 213,211 17,565 25,415 Transfers for contract benefits and terminations (263,683 ) (270,209 ) (57,090 ) (71,550 ) (3,531,637 ) (2,137,214 ) (896,427 ) (609,669 ) Contract maintenance charges (1,516 ) (1,658 ) (483 ) (543 ) (7,970 ) (8,795 ) (1,108 ) (1,194 ) Transfers between subaccounts (including fixed account), net (63,244 ) (208,339 ) (11,097 ) (22,836 ) 152,170 (404,236 ) 239,712 2,179 Net increase (decrease) in net assets from contract transactions (306,470 ) (462,790 ) (63,391 ) (87,632 ) (3,206,987 ) (2,337,034 ) (640,258 ) (583,269 ) Total increase (decrease) in net assets 573,986 (160,665 ) 92,570 111,625 497,873 (827,262 ) (25,964 ) (276,136 )

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Net assets Beginning of period 3,851,942 4,012,607 1,438,649 1,327,024 29,222,304 30,049,566 6,557,492 6,833,628 End of period $4,425,928 $3,851,942 $1,531,219 $1,438,649 $29,720,177 $29,222,304 $6,531,528 $6,557,492 Analysis of increase (decrease) in units outstanding Units issued 398 267 4,542 2,227 23,574 41,171 12,816 3,159 Units redeemed (2,893 ) (4,899 ) (10,409 ) (11,424 ) (161,019 ) (149,971 ) (43,372 ) (33,685 ) Increase (decrease) in units outstanding (2,495 ) (4,632 ) (5,867 ) (9,197 ) (137,445 ) (108,800 ) (30,556 ) (30,526 ) Beginning units 34,456 39,088 136,128 145,325 1,328,646 1,437,446 330,266 360,792 Ending units 31,961 34,456 130,261 136,128 1,191,201 1,328,646 299,710 330,266

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

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Farmers Annuity Separate Account A of Farmers New World Life Insurance Company (A wholly owned subsidiary of Farmers Group, Inc.) Statements of Changes in Net Assets Years Ended December 31, 2017 and 2016

Principal Variable Contracts Funds, Inc. (PVC) Class 2 Shares Strategic Asset Management (SAM) Portfolios, continued SAM Conservative Growth Portfolio SAM Flexible Income Portfolio SAM Strategic Growth Portfolio 2017 2016 as revised 2017 2016 as revised 2017 2016 as revised Increase (decrease) in net assets from operations Net investment income (loss) $9,566 $(18,609 ) $126,604 $140,486 $(12,404 ) $(12,522 ) Net realized gain (loss) from investment transactions 1,046,971 1,572,473 121,747 187,763 979,422 1,077,780 Change in net unrealized appreciation (depreciation) of investments 3,006,859 (279,423 ) 227,251 78,318 2,494,851 (297,524 ) Net increase (decrease) in net assets from operations 4,063,396 1,274,441 475,602 406,567 3,461,869 767,734 Increase (decrease) in net assets from contract transactions Payments received from contract owners 254,697 203,981 48,828 71,444 220,074 255,973 Transfers for contract benefits and terminations (1,954,846 ) (2,144,014 ) (1,040,813) (1,033,879 ) (2,896,934 ) (1,620,914 ) Contract maintenance charges (9,844 ) (11,424 ) (1,087 ) (1,163 ) (9,515 ) (10,601 ) Transfers between subaccounts (including fixed account), net (1,193,954 ) (724,153 ) 46,375 12,314 173,553 (380,977 ) Net increase (decrease) in net assets from contract transactions (2,903,947 ) (2,675,610 ) (946,697 ) (951,284 ) (2,512,822 ) (1,756,519 ) Total increase (decrease) in net assets 1,159,449 (1,401,169 ) (471,095 ) (544,717 ) 949,047 (988,785 ) Net assets Beginning of period 24,195,688 25,596,857 7,383,332 7,928,049 17,849,151 18,837,936 End of period $25,355,137 $24,195,688 $6,912,237 $7,383,332 $18,798,198 $17,849,151 Analysis of increase (decrease) in units outstanding Units issued 14,475 21,194 9,769 11,798 19,175 11,664 Units redeemed (130,521 ) (140,657 ) (58,513 ) (65,319 ) (111,804 ) (87,761 ) Increase (decrease) in units outstanding (116,046 ) (119,463 ) (48,744 ) (53,521 ) (92,629 ) (76,097 ) Beginning units 1,040,122 1,159,585 396,790 450,311 738,794 814,891 Ending units 924,076 1,040,122 348,046 396,790 646,165 738,794

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

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Farmers Annuity Separate Account A of Farmers New World Life Insurance Company (A wholly owned subsidiary of Farmers Group, Inc.) Notes to Financial Statements December 31, 2017

1. The Company The Farmers Annuity Separate Account A (the Account), a unit investment trust registered under the Investment Company Act of 1940, as amended, was established by Farmers New World Life Insurance Company (the Company) during 2000 and exists in accordance with the regulations of the Washington State Office of the Insurance Commissioner. The Company is a wholly owned subsidiary of Farmers Group, Inc. (FGI), whose ultimate parent is Zurich Insurance Group Ltd. FGI, an insurance holding company that provides management services, is attorney-in-fact for three inter-insurance exchanges and their subsidiaries. Under applicable insurance law, the assets and liabilities of the Account are clearly identified and distinguished from the Companys other assets and liabilities. The portion of the Accounts assets applicable to the variable annuity contracts is not chargeable with liabilities arising out of any other business the Company may conduct, but the obligations of the Account, including benefits related to the variable annuity contract, are obligations of the Company. The Account is a funding vehicle for individual variable annuity contracts, which may consist of optional riders for additional insurance benefits. Investments are made in the underlying mutual fund portfolios and are valued at the reported net asset values of such portfolios, which value their investment securities at fair value. Investment transactions are recorded on a trade date basis. The deposits collected for these contracts are invested, at the direction of the contract holders, in the subaccounts that comprise the Account. The Account is currently comprised of forty-seven subaccounts. The value of each subaccount will increase or decrease, depending on the investment performance of the corresponding portfolio less mortality and expenses charged by the company. The subaccounts invest in the following underlying mutual fund portfolios (collectively, the Funds):

The Variable Annuity portfolio includes: Calvert Variable Series, Inc. VP SRI Mid Cap Portfolio

Deutsche Variable Series I Class A Shares Bond VIP Core Equity VIP CROCI® International VIP Global Small Cap VIP

Deutsche Variable Series II Class A Shares CROCI® U.S. VIP (1) Government & Agency Securities VIP Government Money Market VIP High Income VIP Small Mid Cap Growth VIP

Dreyfus Variable Investment Fund Service Class Shares Opportunistic Small Cap Portfolio Quality Bond Portfolio

Dreyfus Sustainable U.S. Equity Portfolio, Inc. Service Class Shares Dreyfus Sustainable U.S. Equity Portfolio (2)

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1. The Company

Fidelity Variable Insurance Products (VIP) Funds Service Class Shares VIP Growth Portfolio VIP Index 500 Portfolio VIP Mid Cap Portfolio

Fidelity VIP Freedom Funds Service Class 2 Shares VIP Freedom 2005 Portfolio VIP Freedom 2010 Portfolio VIP Freedom 2015 Portfolio VIP Freedom 2020 Portfolio VIP Freedom 2025 Portfolio VIP Freedom 2030 Portfolio VIP Freedom Income Portfolio

Fidelity VIP FundsManager Portfolios Service Class 2 Shares VIP FundsManager 20% Portfolio VIP FundsManager 50% Portfolio VIP FundsManager 70% Portfolio VIP FundsManager 85% Portfolio

Franklin Templeton Variable Insurance Products Trust Class 2 Shares Developing Markets VIP Fund Small Mid Cap Growth VIP Fund Small Cap Value VIP Fund

Goldman Sachs Variable Insurance Trust Institutional Class Shares Mid Cap Value Fund Small Cap Equity Insights Fund Strategic Growth Fund

Janus Henderson (6) VIT Balanced Portfolio (Service Shares) (3) VIT Enterprise Portfolio (Service Shares) (4) VIT Forty Portfolio (Institutional Shares) (5)

PIMCO Variable Insurance Trust Administrative Class Shares VIT Foreign Bond Portfolio (U.S. Dollar-Hedged) VIT Low Duration Portfolio

Principal Variable Contracts Funds, Inc. (PVC) Class 2 Shares Equity Funds Capital Appreciation Account Equity Income Account MidCap Account SmallCap Account

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1. The Company

Principal Variable Contracts Funds, Inc. (PVC) Class 2 Shares Strategic Asset Management (SAM) Portfolios SAM Balanced Portfolio SAM Conservative Balanced Portfolio SAM Conservative Growth Portfolio SAM Flexible Income Portfolio SAM Strategic Growth Portfolio

(1) The Deutsche Large Cap Value VIP-A subaccount changed its name to Deutsche CROCI® U.S. VIP-A, effective May 1, 2017. (2) The Dreyfus Socially Responsible Growth subaccount changed its name to Dreyfus Sustainable U.S. Equity Portfolio, effective May 1, 2017. (3) The Janus Aspen Balanced Portfolio subaccount changed its name to Janus Henderson VIT Balanced portfolio, effective June 5, 2017. (4) The Janus Enterprise Balanced Portfolio subaccount changed its name to Janus Henderson VIT Enterprise portfolio, effective June 5, 2017. (5) The Janus Forty Balanced Portfolio changed its name to Janus Henderson VIT Forty Balanced portfolio, effective June 5, 2017. (6) The Janus Aspen Family of Funds was rebranded to Janus Henderson VIT, effective June 5, 2017.

The Company owns the assets in the Account, and is obligated to pay all benefits under the contracts the Company issues. The Company provides insurance and administrative services to the contract holders for a fee. The Company also maintains a fixed account (Fixed Account), to which contract holders may direct their deposits and receive a fixed rate of return. The Company has sole discretion to invest the assets of the Fixed Account, subject to applicable law. Certain officers of the Account are also officers and directors of the Company.

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2. Significant Accounting Policies The accompanying financial statements are prepared in conformity with U.S. generally accepted accounting principles (US GAAP). The Company is considered an investment company under US GAAP and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 946, Financial Services Investment Companies (ASC 946). The significant accounting policies adopted by the Company are as follows:

Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Valuation of Investments and Accumulation Unit Values Investments consist of shares of the Funds and are stated at fair value based on the reported net asset value (NAV) per share of the respective portfolios at December 31, 2017. Accumulation unit values are computed daily based on the change in fair market value of the NAV of the Fund less mortality and expense risk charges for the subaccount. For dividends and capital distributions received by the funds, the accumulation values are calculated with the dividend and capital distribution amount added back to the change in the fair market value of the NAV.

Realized Gains and Losses Realized gains and losses represent the difference between the proceeds from sales of shares and the cost of such shares, which are determined using the specific identified cost method.

During 2017, management identified an error in the method of determining cost basis for investments and calculating realized gains (losses) on sales. As a result, management evaluated the impact of the error and concluded the impact is a misclassification between realized gains (losses) on sale of investments and changes in unrealized appreciation (depreciation) of investments, with no impact to net assets. Management evaluated and determined previously issued financial statements were not materially misstated; however, elected to revise the net realized gain (loss) from investment transactions and change to net unrealized appreciation (depreciation) of investments in the 2016 Statements of Changes in Net Assets. These revisions had no effect on the Statement of Assets and Liabilities or Net Assets.

Federal Income Tax The operations of the Account are included in the federal income tax return of the Company, which is taxed as a life insurance company under the provisions of the Internal Revenue Code (IRC). Under the current provisions of the IRC, the Company does not expect to incur federal income taxes on the earnings of the Account to the extent the earnings are credited under the contracts. Therefore, no charge is being made currently to the Account for federal income taxes. The Company will review periodically the status of this contract in the event of changes in tax law. A charge may be made in future years for any federal income taxes that would be attributable to the contracts.

Dividends Dividend income received by the Funds are reinvested in additional Fund shares and are recognized on the ex-distribution date.

Capital Gain Distributions Capital gain distributions received by the Funds are reinvested in additional Fund shares and are recognized on the ex-distribution date.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Farmers Annuity Separate Account A of Farmers New World Life Insurance Company (A wholly owned subsidiary of Farmers Group, Inc.) Notes to Financial Statements December 31, 2017

2. Significant Accounting Policies

Fair Value Measurements The Company determines the fair value of its financial instruments based on the fair value hierarchy established in FASB guidance referenced in the Accounting Standards Codification Topic 820 (ASC 820), Fair Value Measurements and Disclosure, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company has categorized its financial instruments based on the priority of the inputs to the valuation technique, into the three level hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded at fair value on the Statement of Assets and Liabilities are categorized as follows: Level 1: Unadjusted quoted prices for identical assets or liabilities in an active market. Level 2: Quoted prices in markets that are not active or significant inputs that are observable either directly or indirectly. Level 2 inputs include the following: a) Quoted prices for similar assets or liabilities in active markets b) Quoted prices for identical or similar assets or liabilities in non-active markets c) Inputs other than quoted market prices that are observable d) Inputs that are derived principally from or corroborated by observable market data through correlation or other means. Level 3: Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect managements own judgements about the assumptions a market participant would use in pricing the asset or liability.

Determination of Fair Values The valuation methodologies used to determine the fair values of assets and liabilities reflect market participant assumptions and are based on the application of the fair value hierarchy that prioritizes observable market inputs over unobservable inputs. The Company determines the fair values of certain financial assets based on quoted market prices. All of the investments in the subaccounts of the Separate Account are classified as Level 1 in the fair value hierarchy and consist of open-ended mutual funds. Participants may, without restriction, transact at the daily NAV of the funds. The NAV represents the daily per share value of the portfolio of investments of the mutual funds, at which sufficient volumes of transactions occur. As there were no Level 2 or Level 3 assets in any period presented, disclosure of transfer between levels or a reconciliation of Level 3 assets is not required.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Farmers Annuity Separate Account A of Farmers New World Life Insurance Company (A wholly owned subsidiary of Farmers Group, Inc.) Notes to Financial Statements December 31, 2017

3. Expenses, Contract Maintenance Charges and Related Party Transactions Expenses Mortality and Expense Risk Charge The Company assumes mortality and expense risk related to the operations of the Account and deducts charges daily. The mortality and expense risk charge covers certain insurance benefits available under the contracts and certain expenses the Company expects to incur. It also covers the risk that charges will not be sufficient to cover costs associated with the contracts and to provide contractual benefits. The charge is assessed daily and is equal, on an annual basis, to 0.95% of the average daily net assets in the subaccounts.

Guaranteed Minimum Death Benefit The contract holder has the option at issue of electing the guaranteed minimum death benefit rider which provides an enhanced death benefit in the event of the death of the last surviving annuitant before the annuity start date. The charge for this rider is assessed daily and is equal, on an annual basis, to 0.25% of the average daily assets in the subaccounts.

Guaranteed Retirement Income Benefit A certain number of in-force contracts have a guaranteed retirement income benefit rider which guarantees a minimum lifetime fixed income benefit in certain specified circumstances. The charge for this rider is assessed daily and is equal, on an annual basis, to 0.25% of the average daily assets in the subaccounts. As of June 18, 2003, the Account ceased offering the guaranteed retirement income benefit rider. For contract holders who elected the guaranteed retirement income benefit rider before June 18, 2003, the guaranteed retirement income benefit rider remains in force and the Accounts obligations and duties under this rider will not change.

Administration Charge The Company will deduct a daily asset-based administration charge, at an annual rate of 0.20%, from each subaccount to help reimburse for administrative charges.

Contract Maintenance Charges Surrender Charge The Company may deduct a surrender charge if, during the pay-in period, the contract holder fully surrenders the contract or withdraws a portion of its cash value. A surrender charge of up to 7% of amounts withdrawn may be deducted, if applicable.

Records Maintenance Charge The Company deducts a records maintenance charge of $30 from the contract value on the last valuation day of each contract year during the pay-in period and on the date when the contract is surrendered, and at the annuity start date. This charge will be waived if certain conditions are met.

Transfer Fee The Company may deduct after the twelfth transfer during a contract year, a transfer fee in the amount of $25 per transfer.

Premium Taxes Various states and other governmental entities charge a premium tax on contracts issued by insurance companies. Premium tax rates currently range up to 3.5%, depending on the state. The Company is responsible for paying these taxes. If applicable, the

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Company will deduct the cost of such taxes from the contract value either from premium payments as the Company receives them, from contract value upon surrender or partial withdrawal, on the annuity start date, or upon payment of a death benefit.

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3. Expenses, Contract Maintenance Charges and Related Party Transactions

Portfolio Operating Expenses The value of the net assets of each subaccount is reduced by the investment management, 12b-1 fees and service fees and expenses are paid indirectly, through a reduction in unit values, by the contract holders, which currently range up to 2%.

Related Party Transactions Farmers Financial Solutions, LLC (FFS), a wholly-owned subsidiary of Farmers Insurance Group, is the principal underwriter and distributor for the separate account. FFS may receive compensation from some of the portfolios service providers for administrative and other services performed relating to Variable Account operations.

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4. Purchases and Sales of Investments The aggregate cost of the shares acquired and the aggregate proceeds from shares sold during the period ended December 31, 2017 consist of the following:

Purchases Sales Calvert Variable Series, Inc. VP SRI Mid Cap Portfolio $2,690 $23,002 Deutsche Variable Series I Class A Shares Bond VIP $431,840 $535,002 Core Equity VIP 367,438 526,738 CROCI® International VIP 565,608 599,055 Global Small Cap VIP 504,524 870,152 Deutsche Variable Series II Class A Shares CROCI® U.S. VIP $467,549 $1,546,372 Government & Agency Securities VIP 179,139 315,755 Government Money Market VIP 43,551 437,439 High Income VIP 4,398,647 4,462,624 Small Mid Cap Growth VIP 18,822 23,532 Dreyfus Variable Investment Fund Service Class Shares Opportunistic Small Cap Portfolio $105,437 $361,302 Quality Bond Portfolio 63,945 103,903 Dreyfus Sustainable U.S. Equity Portfolio, Inc. Service Class Shares Dreyfus Sustainable U.S. Equity Portfolio $26,420 $14,656 Fidelity Variable Insurance Products (VIP) Funds Service Class Shares VIP Growth Portfolio $1,170,766 $1,126,359 VIP Index 500 Portfolio 2,674,736 1,146,583 VIP Mid Cap Portfolio 483,901 801,346 Fidelity VIP Freedom Funds Service Class 2 Shares VIP Freedom 2005 Portfolio $1,749 $2,024 VIP Freedom 2010 Portfolio 8,197 47,200 VIP Freedom 2015 Portfolio 28,823 29,073 VIP Freedom 2020 Portfolio 81,331 139,883 VIP Freedom 2025 Portfolio 336,447 139,132 VIP Freedom 2030 Portfolio 160,278 177,427 VIP Freedom Income Portfolio 9,402 4,479 Fidelity VIP FundsManager Portfolios Service Class 2 Shares VIP FundsManager 20% Portfolio $23,589 $65,581 VIP FundsManager 50% Portfolio 199,500 505,411 VIP FundsManager 70% Portfolio 92,629 89,501 VIP FundsManager 85% Portfolio 48,692 87,373 Franklin Templeton Variable Insurance Products Trust Class 2 Shares Developing Markets VIP Fund $34,076 $330,504 Small Mid Cap Growth VIP Fund 378,493 481,398 Small Cap Value VIP Fund 296,922 127,150 Goldman Sachs Variable Insurance Trust Institutional Class Shares Mid Cap Value Fund $409,339 $564,007 Small Cap Equity Insights Fund 140,431 115,769

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4. Purchases and Sales of Investments

Purchases Sales Janus Henderson VIT Balanced Portfolio (Service Shares) $325,358 $1,723,428 VIT Enterprise Portfolio (Service Shares) 81,453 99,089 VIT Forty Portfolio (Institutional Shares) 1,065,472 2,343,914 PIMCO Variable Insurance Trust Administrative Class Shares VIT Foreign Bond Portfolio (U.S. Dollar-Hedged) $274,304 $555,613 VIT Low Duration Portfolio 232,701 412,575 Principal Variable Contracts Funds, Inc. (PVC) Class 2 Shares Equity Funds Capital Appreciation Account $22,165 $96,303 Equity Income Account 515,570 684,625 MidCap Account 333,962 398,243 SmallCap Account 44,724 123,474 Principal Variable Contracts Funds, Inc. (PVC) Class 2 Shares Strategic Asset Management (SAM) Portfolios SAM Balanced Portfolio $1,701,118 $4,037,073 SAM Conservative Balanced Portfolio 489,529 978,852 SAM Conservative Growth Portfolio 1,143,128 3,504,358 SAM Flexible Income Portfolio 430,916 1,201,125 SAM Strategic Growth Portfolio 1,176,006 3,184,981 $21,978,058 $35,871,450

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5. Units Issued and Redeemed

Individual Flexible Premium Variable Annuity with Standard Benefit Unit Activity During Units Accumulation Outstanding Unit Value December 31, Units Units Units December 31, Year Prior Year Issued Redeemed Outstanding Year End Calvert Variable Series, Inc. subaccount VP SRI Mid Cap Portfolio 2017 2,603 31 (470 ) 2,164 $ 21.92 2016 2,832 221 (450 ) 2,603 19.85 Deutsche Variable Series I subaccounts Bond VIP 2017 122,059 6,155 (7,814 ) 120,400 $ 16.14 2016 131,314 4,172 (13,427 ) 122,059 15.43 Core Equity VIP 2017 91,404 2,181 (9,933 ) 83,652 21.32 2016 101,033 873 (10,502 ) 91,404 17.82 CROCI® International VIP 2017 353,447 13,644 (27,153 ) 339,938 7.96 2016 370,655 12,596 (29,804 ) 353,447 6.60 Global Small Cap VIP 2017 103,335 2,292 (14,722 ) 90,905 25.65 2016 116,352 3,183 (16,200 ) 103,335 21.62 Deutsche Variable Series II subaccounts CROCI® U.S. VIP 2017 179,876 2,434 (16,424 ) 165,886 $ 33.63 2016 197,730 8,801 (26,655 ) 179,876 27.68 Government & Agency Securities VIP 2017 53,353 2,421 (6,286 ) 49,488 17.48 2016 62,479 1,531 (10,657 ) 53,353 17.39 Government Money Market VIP 2017 39,218 1,417 (5,499 ) 35,136 10.73 2016 43,553 8,267 (12,602 ) 39,218 10.80 High Income VIP 2017 84,056 66,387 (72,756 ) 77,687 22.90 2016 98,634 3,198 (17,776 ) 84,056 21.55 Small Mid Cap Growth VIP 2017 22,340 91 (874 ) 21,557 8.98 2016 24,507 120 (2,287 ) 22,340 7.44 Dreyfus Variable Investment Fund subaccounts Opportunistic Small Cap Portfolio 2017 57,042 999 (3,669 ) 54,372 $ 20.71 2016 73,560 2,367 (18,885 ) 57,042 16.84 Quality Bond Portfolio 2017 21,556 1,275 (2,624 ) 20,207 15.56 2016 24,849 1,244 (4,537 ) 21,556 15.10 Dreyfus Sustainable U.S. Equity Portfolio, Inc. Service Class Shares subaccount Dreyfus Sustainable U.S. Equity Portfolio 2017 11,071 663 (162 ) 11,572 $ 16.76 2016 12,484 578 (1,991 ) 11,071 14.73 Fidelity Variable Insurance Products (VIP) Funds subaccounts VIP Growth Portfolio 2017 241,835 1,430 (18,368 ) 224,897 $ 21.37 2016 271,704 9,108 (38,977 ) 241,835 16.01 VIP Index 500 Portfolio 2017 218,723 2,998 (23,022 ) 198,699 23.91 2016 255,337 2,459 (39,073 ) 218,723 19.89 VIP Mid Cap Portfolio 2017 98,521 1,523 (6,726 ) 93,318 44.36 2016 108,162 2,128 (11,769 ) 98,521 37.18

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5. Units Issued and Redeemed

Individual Flexible Premium Variable Annuity with Standard Benefit Unit Activity During Units Accumulation Outstanding Unit Value December 31, Units Units Units December 31, Year Prior Year Issued Redeemed Outstanding Year End Fidelity VIP Freedom Funds subaccounts VIP Freedom 2005 Portfolio 2017 588 109 (136 ) 561 $ 14.33 2016 3,462 120 (2,994 ) 588 13.09 VIP Freedom 2010 Portfolio 2017 2,037 (109 ) 1,928 15.63 2016 3,090 (1,053 ) 2,037 14.01 VIP Freedom 2015 Portfolio 2017 13,149 162 (419 ) 12,892 16.05 2016 14,221 (1,072 ) 13,149 14.14 VIP Freedom 2020 Portfolio 2017 51,857 30 (3,008 ) 48,879 16.31 2016 53,581 32 (1,756 ) 51,857 14.19 VIP Freedom 2025 Portfolio 2017 12,712 838 (2,343 ) 11,207 17.23 2016 12,109 886 (283 ) 12,712 14.83 VIP Freedom 2030 Portfolio 2017 34,639 2,294 (2,807 ) 34,126 17.47 2016 33,977 2,169 (1,507 ) 34,639 14.64 VIP Freedom Income Portfolio 2017 9,380 191 (78 ) 9,493 13.24 2016 5,671 3,850 (141 ) 9,380 12.36 Fidelity VIP FundsManager Portfolios subaccounts VIP FundsManager 20% Portfolio 2017 17,435 1,069 (4,037 ) 14,467 $ 12.90 2016 16,308 3,252 (2,125 ) 17,435 12.17 VIP FundsManager 50% Portfolio 2017 63,836 2,156 (256 ) 65,736 15.59 2016 63,187 2,786 (2,137 ) 63,836 13.81 VIP FundsManager 70% Portfolio 2017 71,812 4,202 (3,189 ) 72,825 17.07 2016 193,071 15,515 (136,774) 71,812 14.51 VIP FundsManager 85% Portfolio 2017 14,203 411 (68 ) 14,546 18.06 2016 29,817 629 (16,243 ) 14,203 14.86 Franklin Templeton Variable Insurance Products Trust subaccounts Developing Markets VIP Fund 2017 72,475 598 (8,538 ) 64,535 $ 23.14 2016 77,572 825 (5,922 ) 72,475 16.67 Small Mid Cap Growth VIP Fund 2017 76,758 3,149 (10,896 ) 69,011 21.99 2016 84,364 4,215 (11,821 ) 76,758 18.32 Small Cap Value VIP Fund 2017 78,858 2,226 (1,879 ) 79,205 26.14 2016 83,781 3,223 (8,146 ) 78,858 23.90 Goldman Sachs Variable Insurance Trust Institutional subaccounts Mid Cap Value Fund 2017 56,346 1,731 (3,104 ) 54,973 $ 37.13 2016 63,590 1,555 (8,799 ) 56,346 33.81 Small Cap Equity Insights Fund 2017 20,706 983 (1,929 ) 19,760 29.79 2016 22,898 253 (2,445 ) 20,706 27.01 Strategic Growth Fund 2017 132,374 1,049 (9,947 ) 123,476 21.64 2016 148,900 1,987 (18,513 ) 132,374 16.75

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5. Units Issued and Redeemed Individual Flexible Premium Variable Annuity with Standard Benefit Unit Activity During Units Accumulation Outstanding Unit Value December 31, Units Units Units December 31, Year Prior Year Issued Redeemed Outstanding Year End Janus Henderson subaccounts VIT Balanced Portfolio (Service Shares) 2017 192,669 3,916 (41,317 ) 155,268 $ 25.51 2016 221,477 4,622 (33,430 ) 192,669 21.84 VIT Enterprise Portfolio (Service Shares) 2017 20,784 500 (1,541 ) 19,743 29.74 2016 22,657 900 (2,773 ) 20,784 23.67 VIT Forty Portfolio (Institutional Shares) 2017 450,507 6,432 (52,205 ) 404,734 19.34 2016 502,714 9,232 (61,439 ) 450,507 15.01 PIMCO Variable Insurance Trust subaccounts VIT Foreign Bond Portfolio (U.S. Dollar-Hedged) 2017 69,477 3,089 (5,498 ) 67,068 $ 21.59 2016 85,906 1,546 (17,975 ) 69,477 21.25 VIT Low Duration Portfolio 2017 111,716 5,671 (9,874 ) 107,513 15.53 2016 131,096 2,541 (21,921 ) 111,716 15.50 Principal Variable Contracts Funds, Inc. (PVC) Equity Funds subaccounts Capital Appreciation Account 2017 19,840 187 (2,987 ) 17,040 $ 27.36 2016 23,322 85 (3,567 ) 19,840 22.98 Equity Income Account 2017 122,264 1,465 (7,514 ) 116,215 32.38 2016 130,823 933 (9,492 ) 122,264 27.12 MidCap Account 2017 23,567 75 (606 ) 23,036 140.21 2016 25,486 114 (2,033 ) 23,567 113.28 SmallCap Account 2017 100,030 988 (1,697 ) 99,321 11.78 2016 105,776 1,212 (6,958 ) 100,030 10.58 Principal Variable Contracts Funds, Inc. (PVC) Strategic Asset Management (SAM) subaccounts SAM Balanced Portfolio 2017 589,922 8,579 (56,286 ) 542,215 $ 25.51 2016 659,919 28,594 (98,591 ) 589,922 22.46 SAM Conservative Balanced Portfolio 2017 176,621 11,292 (27,330 ) 160,583 22.18 2016 184,830 2,054 (10,263 ) 176,621 20.18 SAM Conservative Growth Portfolio 2017 429,452 7,553 (46,151 ) 390,854 28.07 2016 484,198 12,015 (66,761 ) 429,452 23.77 SAM Flexible Income Portfolio 2017 277,315 2,174 (44,584 ) 234,905 20.11 2016 285,941 10,169 (18,795 ) 277,315 18.81 SAM Strategic Growth Portfolio 2017 309,779 7,067 (40,150 ) 276,696 29.76 2016 348,894 5,350 (44,465 ) 309,779 24.68

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5. Units Issued and Redeemed

Individual Flexible Premium Variable Annuity with Guaranteed Minimum Death Benefit Unit Activity During Units Accumulation Outstanding Unit Value December 31, Units Units Units December 31, Year Prior Year Issued Redeemed Outstanding Year End Calvert Variable Series, Inc subaccount VP SRI Mid Cap Portfolio 2017 6,517 4 (5 ) 6,516 $ 21.03 2016 8,114 21 (1,618 ) 6,517 19.10 Deutsche Variable Series I subaccounts Bond VIP 2017 145,105 3,955 (20,199 ) 128,861 $ 15.45 2016 127,933 34,719 (17,547 ) 145,105 14.80 Core Equity VIP 2017 21,837 172 (5,723 ) 16,286 20.40 2016 28,215 179 (6,557 ) 21,837 17.09 CROCI® International VIP 2017 158,436 14,173 (35,636 ) 136,973 7.61 2016 169,453 6,596 (17,613 ) 158,436 6.33 Global Small Cap VIP 2017 59,381 4,105 (10,974 ) 52,512 24.61 2016 66,302 1,472 (8,393 ) 59,381 20.79 Deutsche Variable Series II subaccounts CROCI® U.S. VIP 2017 96,103 7,686 (20,205 ) 83,584 $ 32.18 2016 104,257 4,293 (12,447 ) 96,103 26.55 Government & Agency Securities VIP 2017 67,552 2,250 (7,026 ) 62,776 16.73 2016 79,150 5,406 (17,004 ) 67,552 16.68 Government Money Market VIP 2017 32,441 2,602 (1,967 ) 33,076 10.27 2016 32,435 1,951 (1,945 ) 32,441 10.36 High Income VIP 2017 69,226 129,719 (132,849) 66,096 21.92 2016 72,264 2,852 (5,890 ) 69,226 20.67 Small Mid Cap Growth VIP 2017 2,973 92 (60 ) 3,005 8.60 2016 3,089 153 (269 ) 2,973 7.14 Dreyfus Variable Investment Fund subaccounts Opportunistic Small Cap Portfolio 2017 49,446 3,317 (12,192 ) 40,571 $ 19.87 2016 55,311 886 (6,751 ) 49,446 16.20 Quality Bond Portfolio 2017 16,859 1,058 (1,221 ) 16,696 14.93 2016 17,166 649 (956 ) 16,859 14.53 Dreyfus Sustainable U.S. Equity Portfolio, Inc subaccount Dreyfus Sustainable U.S. Equity Portfolio 2017 1,286 74 (403 ) 957 $ 16.08 2016 1,874 58 (646 ) 1,286 14.17 Fidelity Variable Insurance Products (VIP) Funds subaccounts VIP Growth Portfolio 2017 154,495 27,435 (26,170 ) 155,760 $ 20.51 2016 171,892 2,616 (20,013 ) 154,495 15.41 VIP Index 500 Portfolio 2017 137,603 116,455 (14,412 ) 239,646 22.95 2016 161,378 4,297 (28,072 ) 137,603 19.14 VIP Mid Cap Portfolio 2017 62,317 1,762 (10,653 ) 53,426 42.58 2016 66,214 1,617 (5,514 ) 62,317 35.76

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5. Units Issued and Redeemed

Individual Flexible Premium Variable Annuity with Guaranteed Minimum Death Benefit Unit Activity During Units Accumulation Outstanding Unit Value December 31, Units Units Units December 31, Year Prior Year Issued Redeemed Outstanding Year End Fidelity VIP Freedom Funds subaccounts VIP Freedom 2005 Portfolio 2017 $ 14.01 2016 12.82 VIP Freedom 2010 Portfolio 2017 17,253 (2,978 ) 14,275 15.27 2016 18,544 114 (1,405 ) 17,253 13.73 VIP Freedom 2015 Portfolio 2017 26,549 304 (1,082 ) 25,771 15.68 2016 26,873 88 (412 ) 26,549 13.85 VIP Freedom 2020 Portfolio 2017 44,852 1,398 (4,887 ) 41,363 15.94 2016 47,529 16 (2,693 ) 44,852 13.90 VIP Freedom 2025 Portfolio 2017 62,454 16,547 (5,617 ) 73,384 16.84 2016 74,321 421 (12,288 ) 62,454 14.52 VIP Freedom 2030 Portfolio 2017 40,273 4,133 (7,677 ) 36,729 17.07 2016 42,846 1,137 (3,710 ) 40,273 14.34 VIP Freedom Income Portfolio 2017 8,578 168 (59 ) 8,687 12.94 2016 8,580 72 (74 ) 8,578 12.11 Fidelity VIP FundsManager Portfolios subaccounts VIP FundsManager 20% Portfolio 2017 15,283 147 (662 ) 14,768 $ 12.60 2016 18,751 76 (3,544 ) 15,283 11.92 VIP FundsManager 50% Portfolio 2017 38,119 271 (19,706 ) 18,684 15.24 2016 22,384 16,453 (718 ) 38,119 13.52 VIP FundsManager 70% Portfolio 2017 42,652 13 (1,391 ) 41,274 16.68 2016 58,573 823 (16,744 ) 42,652 14.22 VIP FundsManager 85% Portfolio 2017 148,350 137 (3,393 ) 145,094 17.64 2016 149,098 182 (930 ) 148,350 14.56 Franklin Templeton Variable Insurance Products Trust subaccounts Developing Markets VIP Fund 2017 27,209 414 (6,745 ) 20,878 $ 22.14 2016 30,891 1,102 (4,784 ) 27,209 15.99 Small Mid Cap Growth VIP Fund 2017 64,818 2,457 (10,181 ) 57,094 21.10 2016 69,710 1,792 (6,684 ) 64,818 17.63 Small Cap Value VIP Fund 2017 48,383 978 (2,292 ) 47,069 25.34 2016 62,079 444 (14,140 ) 48,383 23.22 Goldman Sachs Variable Insurance Trust subaccounts Mid Cap Value Fund 2017 31,729 2,932 (8,288 ) 26,373 $ 35.63 2016 33,477 594 (2,342 ) 31,729 32.53 Small Cap Equity Insights Fund 2017 12,639 388 (2,138 ) 10,889 28.59 2016 14,787 328 (2,476 ) 12,639 25.98 Strategic Growth Fund 2017 74,656 7,312 (17,047 ) 64,921 20.77 2016 81,018 1,083 (7,445 ) 74,656 16.12

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5. Units Issued and Redeemed

Individual Flexible Premium Variable Annuity with Guaranteed Minimum Death Benefit Unit Activity During Units Accumulation Outstanding Unit Value December 31, Units Units Units December 31, Year Prior Year Issued Redeemed Outstanding Year End Janus Henderson subaccounts VIT Balanced Portfolio (Service Shares) 2017 152,140 6,414 (29,524 ) 129,030 $ 24.48 2016 172,022 3,686 (23,568 ) 152,140 21.01 VIT Enterprise Portfolio (Service Shares) 2017 8,466 62 (868 ) 7,660 28.54 2016 8,754 134 (422 ) 8,466 22.77 VIT Forty Portfolio (Institutional Shares) 2017 192,748 9,470 (46,008 ) 156,210 18.51 2016 218,060 3,840 (29,152 ) 192,748 14.40 PIMCO Variable Insurance Trust subaccounts VIT Foreign Bond Portfolio (U.S. Dollar-Hedged) 2017 56,657 2,518 (9,240 ) 49,935 $ 20.66 2016 64,730 908 (8,981 ) 56,657 20.39 VIT Low Duration Portfolio 2017 90,792 4,396 (9,453 ) 85,735 14.86 2016 97,035 2,859 (9,102 ) 90,792 14.87 Principal Variable Contracts Funds, Inc. (PVC) Equity Funds subaccounts Capital Appreciation Account 2017 14,778 104 (522 ) 14,360 $ 26.52 2016 14,786 118 (126 ) 14,778 22.32 Equity Income Account 2017 87,162 1,266 (13,153 ) 75,275 31.07 2016 102,417 2,331 (17,586 ) 87,162 26.09 MidCap Account 2017 6,904 291 (1,759 ) 5,436 134.56 2016 9,254 124 (2,474 ) 6,904 108.98 SmallCap Account 2017 21,394 2,717 (6,695 ) 17,416 11.70 2016 22,114 417 (1,137 ) 21,394 10.54 Principal Variable Contracts Funds, Inc. (PVC) Strategic Asset Management (SAM) subaccounts SAM Balanced Portfolio 2017 632,250 12,556 (103,735) 541,071 $ 24.56 2016 661,299 3,981 (33,030 ) 632,250 21.68 SAM Conservative Balanced Portfolio 2017 145,794 1,188 (10,170 ) 136,812 21.36 2016 168,105 1,105 (23,416 ) 145,794 19.48 SAM Conservative Growth Portfolio 2017 535,368 3,342 (79,950 ) 458,760 27.03 2016 575,238 4,929 (44,799 ) 535,368 22.94 SAM Flexible Income Portfolio 2017 113,883 7,484 (13,354 ) 108,013 19.36 2016 154,252 745 (41,114 ) 113,883 18.16 SAM Strategic Growth Portfolio 2017 368,351 10,962 (70,078 ) 309,235 28.65 2016 396,463 5,526 (33,638 ) 368,351 23.82

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5. Units Issued and Redeemed

Individual Flexible Premium Variable Annuity with Guaranteed Retirement Income Benefit Unit Activity During Units Accumulation Outstanding Unit Value December 31, Units Units Units December 31, Year Prior Year Issued Redeemed Outstanding Year End Calvert Variable Series, Inc subaccount VP SRI Mid Cap Portfolio 2017 5,447 8 (465 ) 4,990 $ 21.03 2016 5,617 184 (354 ) 5,447 19.10 Deutsche Variable Series I subaccounts Bond VIP 2017 20,462 11,650 (3,949 ) 28,163 $ 15.45 2016 21,564 353 (1,455 ) 20,462 14.80 Core Equity VIP 2017 39,357 2,470 (4,142 ) 37,685 20.40 2016 42,967 430 (4,040 ) 39,357 17.09 CROCI® International VIP 2017 67,682 10,094 (11,103 ) 66,673 7.61 2016 75,790 3,535 (11,643 ) 67,682 6.33 Global Small Cap VIP 2017 20,982 327 (9,314 ) 11,995 24.61 2016 22,288 717 (2,023 ) 20,982 20.79 Deutsche Variable Series II subaccounts CROCI® U.S. VIP 2017 44,825 1,283 (6,971 ) 39,137 $ 32.18 2016 48,558 2,411 (6,144 ) 44,825 26.55 Government & Agency Securities VIP 2017 19,759 1,603 (2,508 ) 18,854 16.73 2016 21,399 568 (2,208 ) 19,759 16.68 Government Money Market VIP 2017 40,006 22 (32,526 ) 7,502 10.27 2016 9,583 30,713 (290 ) 40,006 10.36 High Income VIP 2017 8,761 2,541 (2,904 ) 8,398 21.92 2016 10,356 53 (1,648 ) 8,761 20.67 Small Mid Cap Growth VIP 2017 11,124 75 (729 ) 10,470 8.60 2016 11,373 93 (342 ) 11,124 7.14 Dreyfus Variable Investment Fund subaccounts Opportunistic Small Cap Portfolio 2017 19,313 376 (2,415 ) 17,274 $ 19.87 2016 21,725 529 (2,941 ) 19,313 16.20 Quality Bond Portfolio 2017 7,981 487 (2,216 ) 6,252 14.93 2016 9,254 232 (1,505 ) 7,981 14.53 Dreyfus Sustainable U.S. Equity Portfolio, Inc subaccount Dreyfus Sustainable U.S. Equity Portfolio 2017 631 (243 ) 388 $ 16.08 2016 633 (2 ) 631 14.17 Fidelity Variable Insurance Products (VIP) Funds subaccounts VIP Growth Portfolio 2017 39,213 622 (7,809 ) 32,026 $ 20.51 2016 45,025 620 (6,432 ) 39,213 15.41 VIP Index 500 Portfolio 2017 34,381 1,097 (10,101 ) 25,377 22.95 2016 38,878 763 (5,260 ) 34,381 19.14 VIP Mid Cap Portfolio 2017 17,096 310 (1,269 ) 16,137 42.58 2016 17,644 533 (1,081 ) 17,096 35.76

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5. Units Issued and Redeemed

Individual Flexible Premium Variable Annuity with Guaranteed Retirement Income Benefit Unit Activity During Units Accumulation Outstanding Unit Value December 31, Units Units Units December 31, Year Prior Year Issued Redeemed Outstanding Year End Fidelity VIP Freedom Funds subaccounts VIP Freedom 2005 Portfolio 2017 $ 14.01 2016 12.82 VIP Freedom 2010 Portfolio 2017 15.27 2016 13.73 VIP Freedom 2015 Portfolio 2017 15.68 2016 13.85 VIP Freedom 2020 Portfolio 2017 15.94 2016 13.90 VIP Freedom 2025 Portfolio 2017 3,532 152 3,684 16.84 2016 3,532 3,532 14.52 VIP Freedom 2030 Portfolio 2017 2,728 95 2,823 17.07 2016 2,739 49 (60 ) 2,728 14.34 VIP Freedom Income Portfolio 2017 12.94 2016 12.11 Fidelity VIP FundsManager Portfolios subaccounts VIP FundsManager 20% Portfolio 2017 12,389 12,389 $ 12.60 2016 12,389 12,389 11.92 VIP FundsManager 50% Portfolio 2017 1,060 (2 ) 1,058 15.24 2016 1,062 (2 ) 1,060 13.52 VIP FundsManager 70% Portfolio 2017 16.68 2016 14.22 VIP FundsManager 85% Portfolio 2017 17.64 2016 14.56 Franklin Templeton Variable Insurance Products Trust subaccounts Developing Markets VIP Fund 2017 1,893 1 (16 ) 1,878 $ 22.14 2016 1,902 5 (14 ) 1,893 15.99 Small Mid Cap Growth VIP Fund 2017 7,544 148 (1,522 ) 6,170 21.10 2016 8,529 147 (1,132 ) 7,544 17.63 Small Cap Value VIP Fund 2017 2,322 24 (13 ) 2,333 25.34 2016 1,535 838 (51 ) 2,322 23.22 Goldman Sachs Variable Insurance Trust subaccounts Mid Cap Value Fund 2017 16,050 574 (2,822 ) 13,802 $ 35.63 2016 18,576 382 (2,908 ) 16,050 32.53 Small Cap Equity Insights Fund 2017 146 180 326 28.59 2016 144 2 146 25.98 Strategic Growth Fund 2017 32,913 594 (6,340 ) 27,167 20.77 2016 37,307 482 (4,876 ) 32,913 16.12

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5. Units Issued and Redeemed

Individual Flexible Premium Variable Annuity with Guaranteed Retirement Income Benefit Unit Activity During Units Accumulation Outstanding Unit Value December 31, Units Units Units December 31, Year Prior Year Issued Redeemed Outstanding Year End Janus Henderson subaccounts VIT Balanced Portfolio (Service Shares) 2017 16,525 80 (344 ) 16,261 $ 24.48 2016 17,502 300 (1,277 ) 16,525 21.01 VIT Enterprise Portfolio (Service Shares) 2017 3,549 90 (626 ) 3,013 28.54 2016 4,614 17 (1,082 ) 3,549 22.77 VIT Forty Portfolio (Institutional Shares) 2017 128,879 4,216 (14,924 ) 118,171 18.51 2016 138,481 1,650 (11,252 ) 128,879 14.40 PIMCO Variable Insurance Trust subaccounts VIT Foreign Bond Portfolio (U.S. Dollar-Hedged) 2017 21,336 906 (9,384 ) 12,858 $ 20.66 2016 22,863 397 (1,924 ) 21,336 20.39 VIT Low Duration Portfolio 2017 28,764 1,574 (4,869 ) 25,469 14.86 2016 30,950 809 (2,995 ) 28,764 14.87 Principal Variable Contracts Funds, Inc. (PVC) Equity Funds subaccounts Capital Appreciation Account 2017 2,071 2,071 $ 26.52 2016 2,071 2,071 22.32 Equity Income Account 2017 6,848 123 (1,171 ) 5,800 31.07 2016 6,942 43 (137 ) 6,848 26.09 MidCap Account 2017 2,917 17 (417 ) 2,517 134.56 2016 3,119 8 (210 ) 2,917 108.98 SmallCap Account 2017 8,828 433 (1,462 ) 7,799 11.70 2016 10,651 237 (2,060 ) 8,828 10.54 Principal Variable Contracts Funds, Inc. (PVC) Strategic Asset Management (SAM) subaccounts SAM Balanced Portfolio 2017 51,239 1,063 (224 ) 52,078 $ 24.56 2016 53,226 56 (2,043 ) 51,239 21.68 SAM Conservative Balanced Portfolio 2017 6,768 (5,869 ) 899 21.36 2016 6,770 (2 ) 6,768 19.48 SAM Conservative Growth Portfolio 2017 46,053 778 (4,122 ) 42,709 27.03 2016 64,125 938 (19,010 ) 46,053 22.94 SAM Flexible Income Portfolio 2017 951 (2 ) 949 19.36 2016 954 (3 ) 951 18.16 SAM Strategic Growth Portfolio 2017 39,037 1,122 (955 ) 39,204 28.65 2016 46,972 761 (8,696 ) 39,037 23.82

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5. Units Issued and Redeemed

Individual Flexible Premium Variable Annuity with Guaranteed Minimum Death Benefit and Retirement Income Benefit Unit Activity During Units Accumulation Outstanding Unit Value December 31, Units Units Units December 31, Year Prior Year Issued Redeemed Outstanding Year End Calvert Variable Series, Inc subaccount VP SRI Mid Cap Portfolio 2017 20 (1 ) 19 $ 20.19 2016 21 (1 ) 20 18.38 Deutsche Variable Series I subaccounts Bond VIP 2017 16,575 999 (1,203 ) 16,371 $ 14.79 2016 18,568 519 (2,512 ) 16,575 14.20 Core Equity VIP 2017 44,673 655 (7,162 ) 38,166 19.53 2016 46,626 460 (2,413 ) 44,673 16.40 CROCI® International VIP 2017 57,337 1,318 (7,196 ) 51,459 7.29 2016 62,092 3,614 (8,369 ) 57,337 6.07 Global Small Cap VIP 2017 11,592 234 (1,226 ) 10,600 23.62 2016 12,950 517 (1,875 ) 11,592 20.01 Deutsche Variable Series II subaccounts CROCI® U.S. VIP 2017 42,353 633 (5,465 ) 37,521 $ 30.80 2016 44,540 2,698 (4,885 ) 42,353 25.48 Government & Agency Securities VIP 2017 16,382 1,358 (1,699 ) 16,041 16.01 2016 18,125 728 (2,471 ) 16,382 16.00 Government Money Market VIP 2017 3,977 168 (1,424 ) 2,721 9.83 2016 4,004 142 (169 ) 3,977 9.94 High Income VIP 2017 10,669 607 (579 ) 10,697 20.98 2016 12,340 113 (1,784 ) 10,669 19.84 Small Mid Cap Growth VIP 2017 5,718 73 (944 ) 4,847 8.23 2016 5,758 86 (126 ) 5,718 6.85 Dreyfus Variable Investment Fund subaccounts Opportunistic Small Cap Portfolio 2017 11,028 340 (1,238 ) 10,130 $ 19.07 2016 12,908 694 (2,574 ) 11,028 15.59 Quality Bond Portfolio 2017 8,326 826 (497 ) 8,655 14.33 2016 9,334 386 (1,394 ) 8,326 13.98 Dreyfus Sustainable U.S. Equity Portfolio, Inc. Service Class Shares subaccount Dreyfus Sustainable U.S. Equity Portfolio 2017 237 (45 ) 192 $ 15.43 2016 423 (186 ) 237 13.64 Fidelity Variable Insurance Products (VIP) Funds subaccounts VIP Growth Portfolio 2017 30,608 1,935 (4,731 ) 27,812 $ 19.69 2016 35,715 838 (5,945 ) 30,608 14.82 VIP Index 500 Portfolio 2017 26,061 482 (2,334 ) 24,209 22.03 2016 29,733 472 (4,144 ) 26,061 18.41 VIP Mid Cap Portfolio 2017 9,090 128 (574 ) 8,644 40.86 2016 8,682 1,128 (720 ) 9,090 34.41

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5. Units Issued and Redeemed

Individual Flexible Premium Variable Annuity with Guaranteed Minimum Death Benefit and Retirement Income Benefit Unit Activity During Units Accumulation Outstanding Unit Value December 31, Units Units Units December 31, Year Prior Year Issued Redeemed Outstanding Year End Fidelity VIP Freedom Funds subaccounts VIP Freedom 2005 Portfolio 2017 $ 13.69 2016 12.56 VIP Freedom 2010 Portfolio 2017 14.92 2016 14.92 VIP Freedom 2015 Portfolio 2017 15.33 2016 13.57 VIP Freedom 2020 Portfolio 2017 6,001 (86 ) 5,915 15.58 2016 3,142 3,153 (294 ) 6,001 13.62 VIP Freedom 2025 Portfolio 2017 16.46 2016 14.23 VIP Freedom 2030 Portfolio 2017 16.68 2016 14.05 VIP Freedom Income Portfolio 2017 12.65 2016 11.86 Fidelity VIP FundsManager Portfolios subaccounts VIP FundsManager 20% Portfolio 2017 $ 12.32 2016 11.68 VIP FundsManager 50% Portfolio 2017 5,397 10,010 (14,953 ) 454 14.89 2016 5,397 5,397 13.25 VIP FundsManager 70% Portfolio 2017 16.30 2016 13.93 VIP FundsManager 85% Portfolio 2017 17.24 2016 14.26 Franklin Templeton Variable Insurance Products Trust subaccounts Developing Markets VIP Fund 2017 1,770 (1,100 ) 670 $ 21.19 2016 1,832 57 (119 ) 1,770 15.34 Small Mid Cap Growth VIP Fund 2017 6,603 149 (836 ) 5,916 20.25 2016 7,579 262 (1,238 ) 6,603 16.96 Small Cap Value VIP Fund 2017 79 79 24.56 2016 78 1 79 22.56 Goldman Sachs Variable Insurance Trust subaccounts Mid Cap Value Fund 2017 12,509 587 (1,800 ) 11,296 $ 34.19 2016 14,289 365 (2,145 ) 12,509 31.29 Small Cap Equity Insights Fund 2017 116 116 27.44 2016 115 1 116 25.00 Strategic Growth Fund 2017 25,312 352 (3,422 ) 22,242 19.93 2016 29,738 646 (5,072 ) 25,312 15.51

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5. Units Issued and Redeemed

Individual Flexible Premium Variable Annuity with Guaranteed Minimum Death Benefit and Retirement Income Benefit Unit Activity During Units Accumulation Outstanding Unit Value December 31, Units Units Units December 31, Year Prior Year Issued Redeemed Outstanding Year End Janus Henderson subaccounts VIT Balanced Portfolio (Service Shares) 2017 4,093 (1,071 ) 3,022 $ 23.50 2016 4,465 (372 ) 4,093 20.22 VIT Enterprise Portfolio (Service Shares) 2017 4,243 142 (463 ) 3,922 27.39 2016 4,771 77 (605 ) 4,243 21.91 VIT Forty Portfolio (Institutional Shares) 2017 103,714 824 (15,998 ) 88,540 17.72 2016 108,755 3,834 (8,875 ) 103,714 13.82 PIMCO Variable Insurance Trust subaccounts VIT Foreign Bond Portfolio (U.S. Dollar-Hedged) 2017 10,434 936 (1,810 ) 9,560 $ 19.78 2016 12,089 362 (2,017 ) 10,434 19.56 VIT Low Duration Portfolio 2017 21,460 2,259 (1,679 ) 22,040 14.23 2016 24,374 1,230 (4,144 ) 21,460 14.27 Principal Variable Contracts Funds, Inc. (PVC) Equity Funds subaccounts Capital Appreciation Account 2017 5,162 253 5,415 $ 25.71 2016 4,869 293 5,162 21.69 Equity Income Account 2017 14,909 483 (433 ) 14,959 29.82 2016 14,735 382 (208 ) 14,909 25.10 MidCap Account 2017 1,068 15 (111 ) 972 129.15 2016 1,229 21 (182 ) 1,068 104.85 SmallCap Account 2017 5,876 404 (555 ) 5,725 11.62 2016 6,784 361 (1,269 ) 5,876 10.49 Principal Variable Contracts Funds, Inc. (PVC) Strategic Asset Management (SAM) subaccounts SAM Balanced Portfolio 2017 55,235 1,376 (774 ) 55,837 $ 23.65 2016 63,002 8,540 (16,307 ) 55,235 20.93 SAM Conservative Balanced Portfolio 2017 1,083 336 (3 ) 1,416 20.56 2016 1,087 (4 ) 1,083 18.81 SAM Conservative Growth Portfolio 2017 29,249 2,802 (298 ) 31,753 26.03 2016 36,024 3,312 (10,087 ) 29,249 22.15 SAM Flexible Income Portfolio 2017 4,641 111 (573 ) 4,179 18.65 2016 9,164 884 (5,407 ) 4,641 17.53 SAM Strategic Growth Portfolio 2017 21,627 24 (621 ) 21,030 27.59 2016 22,562 27 (962 ) 21,627 23.00

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6. Financial Highlights The Company sells variable annuity products, which have unique combinations of features and fees that are charged against the contractholders account balance. Differences in the fee structures result in a variety of unit values, expense ratios and total returns.

The following table was developed by determining which products offered by the Company have the lowest and highest total return. Only product designs within each subaccount that had units outstanding during the respective periods were considered when determining the lowest and highest total return. The summary may not reflect the minimum and maximum contract charges offered by the Company as contractholders may not have selected all available and applicable contract options as discussed in Note 3.

At December 31 For the Period Ended December 31 Investment Expense Ratio Income ** Total Return *** Units Unit Fair Value Net Assets Ratio* Lowest to Highest Lowest to Highest Calvert Variable Series, Inc. VP SRI Mid Cap Portfolio 2017 13,689 $20.19 to $21.92 $289,906 0.69 % 1.15% to 1.65% 9.85 % to 10.39 % 2016 14,587 18.38 to 19.85 280,621 0.00 % 1.15% to 1.65% 5.50 % to 6.02 % 2015 16,584 17.42 to 18.73 301,426 0.00 % 1.15% to 1.65% (4.85 %) to (4.38 %) 2014 16,599 18.31 to 19.59 316,165 0.00 % 1.15% to 1.65% 6.33 % to 6.86 % 2013 24,340 17.22 to 18.33 437,991 0.00 % 1.15% to 1.65% 27.80 % to 28.43 % Deutsche Variable Series I Class A Shares Bond VIP 2017 293,795 $14.79 to $16.14 $4,611,522 2.44 % 1.15% to 1.65% 4.12 % to 4.63 % 2016 304,201 14.20 to 15.43 4,569,125 5.10 % 1.15% to 1.65% 4.21 % to 4.72 % 2015 299,379 13.63 to 14.73 4,305,725 2.92 % 1.15% to 1.65% (1.91 %) to (1.43 %) 2014 315,939 13.89 to 14.95 4,622,518 3.61 % 1.15% to 1.65% 4.90 % to 5.42 % 2013 374,922 13.25 to 14.18 5,214,143 3.88 % 1.15% to 1.65% (4.60 %) to (4.13 %) Core Equity VIP 2017 175,789 $19.53 to $21.32 $3,629,764 1.20 % 1.15% to 1.65% 19.06 % to 19.65 % 2016 197,271 16.40 to 17.82 3,407,348 1.43 % 1.15% to 1.65% 8.69 % to 9.22 % 2015 218,841 15.09 to 16.31 3,468,484 0.84 % 1.15% to 1.65% 3.54 % to 4.05 % 2014 231,178 14.58 to 15.68 3,526,696 1.08 % 1.15% to 1.65% 10.01 % to 10.55 % 2013 250,404 13.25 to 14.18 3,460,393 1.43 % 1.15% to 1.65% 35.10 % to 35.77 % CROCI® International VIP 2017 595,043 $7.29 to $7.96 $4,629,849 6.93 % 1.15% to 1.65% 19.99 % to 20.58 % 2016 636,902 6.07 to 6.60 4,111,365 10.43 % 1.15% to 1.65% (0.90 %) to (0.41 %) 2015 677,990 6.13 to 6.62 4,398,432 4.16 % 1.15% to 1.65% (7.02 %) to (6.56 %) 2014 706,135 6.59 to 7.09 4,911,581 1.75 % 1.15% to 1.65% (13.20%) to (12.77%) 2013 729,775 7.59 to 8.13 5,825,858 5.37 % 1.15% to 1.65% 18.28 % to 18.86 % Global Small Cap VIP 2017 166,012 $23.62 to $25.65 $4,170,024 0.00 % 1.15% to 1.65% 18.08 % to 18.66 % 2016 195,290 20.01 to 21.62 4,136,724 0.39 % 1.15% to 1.65% (0.08 %) to 0.42 % 2015 217,892 20.02 to 21.53 4,602,944 0.96 % 1.15% to 1.65% (0.48 %) to 0.01 % 2014 233,684 20.12 to 21.52 4,941,286 0.87 % 1.15% to 1.65% (5.69 %) to (5.22 %) 2013 253,751 21.33 to 22.71 5,665,626 0.65 % 1.15% to 1.65% 33.74 % to 34.40 % Deutsche Variable Series II Class A Shares Government & Agency Securities VIP 2017 147,159 $16.01 to $17.48 $2,486,971 2.58 % 1.15% to 1.65% 0.03 % to 0.52 %

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 2016 157,046 16.00 to 17.39 2,646,131 3.08 % 1.15% to 1.65% (0.49 %) to 0.00 % 2015 181,153 16.08 to 17.39 3,059,015 2.85 % 1.15% to 1.65% (1.65 %) to (1.16 %) 2014 194,539 16.35 to 17.59 3,332,289 2.31 % 1.15% to 1.65% 3.58 % to 4.10 % 2013 211,600 15.79 to 16.90 3,490,455 3.03 % 1.15% to 1.65% (4.62 %) to (4.15 %) High Income VIP 2017 162,878 $20.98 to $22.90 $3,636,822 5.79 % 1.15% to 1.65% 5.77 % to 6.29 % 2016 172,712 19.84 to 21.55 3,635,374 6.09 % 1.15% to 1.65% 11.03 % to 11.58 % 2015 193,594 17.87 to 19.31 3,659,929 6.10 % 1.15% to 1.65% (5.99 %) to (5.52 %) 2014 209,289 19.00 to 20.44 4,191,701 6.77 % 1.15% to 1.65% (0.17 %) to 0.32 % 2013 235,138 19.04 to 20.38 4,703,348 7.16 % 1.15% to 1.65% 6.16 % to 6.69 % CROCI® U.S. VIP (1) 2017 326,128 $30.80 to $33.63 $10,682,847 1.50 % 1.15% to 1.65% 20.89 % to 21.49 % 2016 363,157 25.48 to 27.68 9,799,543 1.02 % 1.15% to 1.65% (5.94 %) to (5.48 %) 2015 395,085 27.09 to 29.28 11,299,298 1.46 % 1.15% to 1.65% (8.38 %) to (7.93 %) 2014 410,710 29.57 to 31.80 12,777,360 1.71 % 1.15% to 1.65% 8.92 % to 9.46 % 2013 456,213 27.15 to 29.05 12,984,730 1.98 % 1.15% to 1.65% 28.77 % to 29.41 %

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6. Financial Highlights

At December 31 For the Period Ended December 31 Investment Expense Ratio Unit Net Income ** Total Return *** Units Fair Value Assets Ratio* Lowest to Highest Lowest to Highest Government Money Market VIP 2017 78,435 $9.83 to $10.73 $820,207 0.42 % 1.15% to 1.65% (1.17 %) to (0.69 %) 2016 115,642 9.94 to 10.80 1,213,838 0.05 % 1.15% to 1.65% (1.57 %) to (1.08 %) 2015 89,575 10.10 to 10.92 957,249 0.01 % 1.15% to 1.65% (1.61 %) to (1.13 %) 2014 99,000 10.27 to 11.04 1,071,572 0.01 % 1.15% to 1.65% (1.61 %) to (1.13 %) 2013 114,066 10.44 to 11.17 1,250,636 0.01 % 1.15% to 1.65% (1.61 %) to (1.13 %) Small Mid Cap Growth VIP 2017 39,879 $8.23 to $8.98 $349,331 0.10 % 1.15% to 1.65% 20.14% to 20.73% 2016 42,155 6.85 to 7.44 305,948 0.00 % 1.15% to 1.65% 7.30 % to 7.84 % 2015 44,727 6.38 to 6.90 301,749 0.00 % 1.15% to 1.65% (2.50 %) to (2.02 %) 2014 48,567 6.55 to 7.04 334,503 0.00 % 1.15% to 1.65% 3.98 % to 4.49 % 2013 59,120 6.29 to 6.74 390,061 0.12 % 1.15% to 1.65% 40.47% to 41.16% Dreyfus Variable Investment Fund Service Class Shares Opportunistic Small Cap Portfolio 2017 122,347 $19.07 to $20.71 $2,468,483 0.00 % 1.15% to 1.65% 22.36% to 22.96% 2016 136,829 15.59 to 16.84 2,246,365 0.00 % 1.15% to 1.65% 14.89% to 15.46% 2015 163,504 13.57 to 14.58 2,331,484 0.00 % 1.15% to 1.65% (4.10 %) to (3.63 %) 2014 189,358 14.15 to 15.13 2,805,758 0.00 % 1.15% to 1.65% (0.32 %) to 0.17 % 2013 198,930 14.19 to 15.11 2,949,034 0.00 % 1.15% to 1.65% 45.81% to 46.53% Quality Bond Portfolio 2017 51,810 $14.33 to $15.56 $781,239 1.87 % 1.15% to 1.65% 2.56 % to 3.07 % 2016 54,722 13.98 to 15.10 802,641 1.53 % 1.15% to 1.65% (0.37 %) to 0.12 % 2015 60,603 14.03 to 15.08 889,915 1.81 % 1.15% to 1.65% (3.48 %) to (3.00 %) 2014 71,551 14.53 to 15.55 1,085,902 1.89 % 1.15% to 1.65% 2.86 % to 3.36 % 2013 81,489 14.13 to 15.04 1,198,950 2.61 % 1.15% to 1.65% (3.39 %) to (2.91 %) Dreyfus Sustainable U.S. Equity Portfolio, Inc. Service Class Shares Dreyfus Sustainable U.S. Equity Portfolio (2) 2017 13,109 $15.43 to $16.76 $218,489 0.91 % 1.15% to 1.65% 13.18% to 13.74% 2016 13,225 13.64 to 14.73 193,504 1.09 % 1.15% to 1.65% 8.29 % to 8.82 % 2015 15,414 12.59 to 13.54 207,060 1.15 % 1.15% to 1.65% (4.98 %) to (4.51 %) 2014 30,424 13.25 to 14.18 424,201 0.83 % 1.15% to 1.65% 11.30% to 11.85% 2013 30,502 11.91 to 12.68 380,841 1.09 % 1.15% to 1.65% 31.82% to 32.47% Fidelity Variable Insurance Products (VIP) Funds Service Class Shares VIP Growth Portfolio 2017 440,495 $19.69 to $21.37 $9,206,221 0.12 % 1.15% to 1.65% 32.82% to 33.47% 2016 466,151 14.82 to 16.01 7,310,449 0.00 % 1.15% to 1.65% (0.92 %) to (0.43 %) 2015 524,336 14.96 to 16.08 8,268,474 0.16 % 1.15% to 1.65% 5.31 % to 5.84 %

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 2014 578,408 14.20 to 15.20 8,630,418 0.09 % 1.15% to 1.65% 9.38 % to 9.92 % 2013 634,157 12.99 to 13.82 8,617,645 0.19 % 1.15% to 1.65% 33.99% to 34.66% VIP Index 500 Portfolio 2017 487,931 $22.03 to $23.91 $11,366,584 1.72 % 1.15% to 1.65% 19.62% to 20.21% 2016 416,768 18.41 to 19.89 8,122,003 1.34 % 1.15% to 1.65% 9.93 % to 10.48% 2015 485,326 16.75 to 18.01 8,572,938 1.86 % 1.15% to 1.65% (0.41 %) to 0.08 % 2014 527,109 16.82 to 17.99 9,316,890 1.48 % 1.15% to 1.65% 11.61% to 12.17% 2013 601,711 15.07 to 16.04 9,501,121 1.79 % 1.15% to 1.65% 29.97% to 30.61% VIP Mid Cap Portfolio 2017 171,525 $40.86 to $44.36 $7,454,694 0.62 % 1.15% to 1.65% 18.75% to 19.34% 2016 187,024 34.41 to 37.18 6,815,412 0.43 % 1.15% to 1.65% 10.29% to 10.84% 2015 200,702 31.20 to 33.54 6,611,087 0.38 % 1.15% to 1.65% (3.10 %) to (2.62 %) 2014 224,859 32.20 to 34.44 7,609,810 0.16 % 1.15% to 1.65% 4.47 % to 4.99 % 2013 251,019 30.82 to 32.81 8,101,515 0.40 % 1.15% to 1.65% 33.85% to 34.52% Fidelity VIP Freedom Funds Service Class 2 Shares VIP Freedom 2005 Portfolio 2017 561 $14.33 to $14.33 $8,035 1.36 % 1.15% to 1.15% 9.48 % to 9.48 % 2016 588 13.09 to 13.09 7,696 1.14 % 1.15% to 1.15% 3.59 % to 3.59 % 2015 3,462 12.19 to 12.64 43,745 1.64 % 1.15% to 1.15% (1.62 %) to (1.62 %) 2014 3,360 12.45 to 12.85 43,146 1.21 % 1.15% to 1.15% 2.86 % to 2.86 % 2013 6,076 12.49 to 12.49 75,865 1.37 % 1.15% to 1.15% 8.22 % to 8.22 % VIP Freedom 2010 Portfolio 2017 16,203 $15.27 to $15.63 $248,070 1.27 % 1.15% to 1.40% 11.24% to 11.52% 2016 19,290 13.73 to 14.01 265,336 1.23 % 1.15% to 1.40% 3.78 % to 4.03 % 2015 21,634 12.99 to 13.47 286,865 1.39 % 1.15% to 1.40% (1.90 %) to (1.66 %) 2014 35,764 13.27 to 13.70 482,859 1.39 % 1.15% to 1.40% 2.77 % to 3.03 % 2013 36,892 13.12 to 13.29 484,740 1.49 % 1.15% to 1.40% 11.63% to 11.91%

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6. Financial Highlights

At December 31 For the Period Ended December 31 Investment Unit Income Expense Ratio ** Total Return *** Units Fair Value Net Assets Ratio* Lowest to Highest Lowest to Highest VIP Freedom 2015 Portfolio 2017 38,663 $15.68 to $16.05 $611,024 1.28 % 1.15% to 1.40% 13.22 % to 13.50 % 2016 39,698 13.85 to 14.14 553,647 1.27 % 1.15% to 1.40% 4.12 % to 4.38 % 2015 41,094 13.06 to 13.55 550,125 1.46 % 1.15% to 1.40% (1.88 %) to (1.64 %) 2014 56,291 13.35 to 13.77 766,462 1.41 % 1.15% to 1.40% 3.01 % to 3.27 % 2013 57,541 13.16 to 13.34 760,042 1.56 % 1.15% to 1.40% 12.53 % to 12.81 % VIP Freedom 2020 Portfolio 2017 96,160 $15.58 to $16.31 $1,548,567 1.25 % 1.15% to 1.65% 14.38 % to 14.94 % 2016 102,713 13.62 to 14.19 1,441,028 1.28 % 1.15% to 1.65% 4.09 % to 4.60 % 2015 104,252 13.08 to 13.57 1,401,161 1.61 % 1.15% to 1.65% (2.07 %) to (1.59 %) 2014 105,280 13.36 to 13.79 1,439,999 1.43 % 1.15% to 1.65% 2.90 % to 3.41 % 2013 106,687 12.98 to 13.33 1,412,794 1.62 % 1.15% to 1.65% 13.76 % to 14.32 % VIP Freedom 2025 Portfolio 2017 88,275 $16.84 to $17.23 $1,491,097 1.41 % 1.15% to 1.40% 15.95 % to 16.23 % 2016 78,698 14.52 to 14.83 1,146,907 1.30 % 1.15% to 1.40% 4.52 % to 4.78 % 2015 86,430 13.65 to 14.15 1,204,150 1.57 % 1.15% to 1.40% (1.88 %) to (1.64 %) 2014 90,061 13.94 to 14.39 1,279,100 1.43 % 1.15% to 1.40% 3.41 % to 3.66 % 2013 94,056 13.70 to 13.88 1,291,081 1.75 % 1.15% to 1.40% 18.06 % to 18.35 % VIP Freedom 2030 Portfolio 2017 73,678 $17.07 to $17.47 $1,271,293 1.17 % 1.15% to 1.40% 19.03 % to 19.33 % 2016 77,640 14.34 to 14.64 1,123,763 1.24 % 1.15% to 1.40% 4.91 % to 5.16 % 2015 79,562 13.43 to 13.92 1,096,127 1.44 % 1.15% to 1.40% (1.90 %) to (1.66 %) 2014 80,317 13.72 to 14.16 1,126,596 1.35 % 1.15% to 1.40% 3.30 % to 3.55 % 2013 81,181 13.49 to 13.67 1,101,055 1.55 % 1.15% to 1.40% 19.73 % to 20.03 % VIP Freedom Income Portfolio 2017 18,180 $12.94 to $13.24 $238,119 1.33 % 1.15% to 1.40% 6.87 % to 7.13 % 2016 17,958 12.11 to 12.36 219,819 1.27 % 1.15% to 1.40% 2.73 % to 2.99 % 2015 14,251 11.58 to 12.00 169,205 1.55 % 1.15% to 1.40% (1.94 %) to (1.70 %) 2014 14,318 11.83 to 12.21 173,209 1.28 % 1.15% to 1.40% 2.11 % to 2.36 % 2013 14,220 11.77 to 11.93 168,296 1.31 % 1.15% to 1.40% 3.76 % to 4.01 % Fidelity VIP FundsManager Portfolios Service Class 2 Shares VIP FundsManager 20% Portfolio 2017 41,624 $12.60 to $12.90 $528,842 1.10 % 1.15% to 1.40% 5.71 % to 5.97 % 2016 45,107 11.92 to 12.17 542,098 1.24 % 1.15% to 1.40% 1.25 % to 1.50 % 2015 35,059 11.56 to 11.99 416,336 0.91 % 1.15% to 1.40% (1.55 %) to (1.30 %) 2014 42,606 11.78 to 12.15 514,096 1.15 % 1.15% to 1.40% 2.55 % to 2.80 % 2013 41,765 11.66 to 11.82 490,653 0.98 % 1.15% to 1.40% 4.00 % to 4.26 %

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document VIP FundsManager 50% Portfolio 2017 85,932 $14.89 to $15.59 $1,332,604 0.99 % 1.15% to 1.65% 12.40 % to 12.95 % 2016 108,412 13.25 to 13.81 1,482,652 1.21 % 1.15% to 1.65% 2.39 % to 2.89 % 2015 86,633 12.94 to 13.42 1,156,701 0.92 % 1.15% to 1.40% (1.40 %) to (1.16 %) 2014 93,682 13.16 to 13.57 1,265,985 0.99 % 1.15% to 1.40% 3.50 % to 3.76 % 2013 92,767 12.91 to 13.08 1,209,032 0.93 % 1.15% to 1.40% 13.08 % to 13.36 % VIP FundsManager 70% Portfolio 2017 114,099 $16.68 to $17.07 $1,931,239 0.79 % 1.15% to 1.40% 17.30 % to 17.59 % 2016 114,464 14.22 to 14.51 1,648,690 0.88 % 1.15% to 1.40% 3.41 % to 3.67 % 2015 251,644 13.50 to 14.00 3,508,364 0.80 % 1.15% to 1.40% (1.10 %) to (0.85 %) 2014 253,715 13.69 to 14.12 3,570,784 1.04 % 1.15% to 1.40% 3.65 % to 3.91 % 2013 245,213 13.41 to 13.59 3,323,111 0.91 % 1.15% to 1.40% 19.86 % to 20.15 % VIP FundsManager 85% Portfolio 2017 159,640 $17.64 to $18.06 $2,822,812 0.62 % 1.15% to 1.40% 21.21 % to 21.51 % 2016 162,553 14.56 to 14.86 2,370,662 0.76 % 1.15% to 1.40% 4.02 % to 4.27 % 2015 178,915 13.74 to 14.25 2,511,572 1.38 % 1.15% to 1.40% (1.04 %) to (0.80 %) 2014 166,928 13.92 to 14.37 2,367,309 0.86 % 1.15% to 1.40% 3.62 % to 3.88 % 2013 165,869 13.65 to 13.83 2,268,946 0.77 % 1.15% to 1.40% 25.78 % to 26.09 % Franklin Templeton Variable Insurance Products Trust Class 2 Shares Developing Markets VIP Fund 2017 87,961 $21.19 to $23.14 $2,011,046 0.98 % 1.15% to 1.65% 38.14 % to 38.82 % 2016 103,347 15.34 to 16.67 1,700,331 0.82 % 1.15% to 1.65% 15.54 % to 16.11 % 2015 112,197 13.28 to 14.35 1,590,486 2.05 % 1.15% to 1.65% (20.91%) to (20.52%) 2014 117,147 16.79 to 18.06 2,091,321 1.49 % 1.15% to 1.65% (9.88 %) to (9.43 %) 2013 127,344 18.63 to 19.94 2,512,097 2.00 % 1.15% to 1.65% (2.53 %) to (2.05 %) Small Mid Cap Growth VIP Fund 2017 138,191 $20.25 to $21.99 $2,972,639 0.00 % 1.15% to 1.65% 19.43 % to 20.02 % 2016 155,723 16.96 to 18.32 2,793,868 0.00 % 1.15% to 1.65% 2.48 % to 2.99 % 2015 170,182 16.55 to 17.79 2,968,750 0.00 % 1.15% to 1.65% (4.24 %) to (3.76 %) 2014 190,171 17.28 to 18.49 3,447,967 0.00 % 1.15% to 1.65% 5.73 % to 6.25 % 2013 198,252 16.34 to 17.40 3,388,039 0.00 % 1.15% to 1.65% 35.91 % to 36.58 %

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Farmers Annuity Separate Account A of Farmers New World Life Insurance Company (A wholly owned subsidiary of Farmers Group, Inc.) Notes to Financial Statements December 31, 2017

6. Financial Highlights

At December 31 For the Period Ended December 31 Investment Unit Income Expense Ratio ** Total Return *** Units Fair Value Net Assets Ratio* Lowest to Highest Lowest to Highest Small Cap Value VIP Fund 2017 128,686 $24.56 to $26.14 $3,324,393 0.51 % 1.15% to 1.65% 8.86 % to 9.40 % 2016 129,642 22.56 to 23.90 3,063,617 0.80 % 1.15% to 1.65% 28.07 % to 28.71 % 2015 147,473 17.61 to 18.57 2,707,358 0.63 % 1.15% to 1.65% (8.89 %) to (8.44 %) 2014 152,027 19.33 to 20.28 3,051,182 0.64 % 1.15% to 1.65% (1.06 %) to (0.57 %) 2013 164,869 19.54 to 20.40 3,332,387 1.35 % 1.15% to 1.65% 34.03 % to 34.69 % Goldman Sachs Variable Insurance Trust Institutional Class Shares Mid Cap Value Fund 2017 106,444 $34.19 to $37.13 $3,858,446 0.73 % 1.15% to 1.65% 9.27 % to 9.81 % 2016 116,634 31.29 to 33.81 3,850,299 1.37 % 1.15% to 1.65% 11.69 % to 12.24 % 2015 129,932 28.02 to 30.12 3,827,794 0.38 % 1.15% to 1.65% (10.72%) to (10.27%) 2014 142,137 31.38 to 33.57 4,678,058 0.98 % 1.15% to 1.65% 11.73 % to 12.28 % 2013 158,289 28.09 to 29.90 4,648,171 0.84 % 1.15% to 1.65% 30.74 % to 31.38 % Small Cap Equity Insights Fund 2017 31,091 $27.44 to $29.79 $912,577 0.55 % 1.15% to 1.65% 9.76 % to 10.30 % 2016 33,607 25.00 to 27.01 894,415 1.16 % 1.15% to 1.65% 21.20 % to 21.80 % 2015 37,944 20.63 to 22.18 829,489 0.27 % 1.15% to 1.65% (3.72 %) to (3.24 %) 2014 45,599 21.42 to 22.92 1,029,590 0.76 % 1.15% to 1.65% 5.19 % to 5.71 % 2013 51,839 20.37 to 21.68 1,107,012 0.93 % 1.15% to 1.65% 33.42 % to 34.08 % Strategic Growth Fund 2017 237,806 $19.93 to $21.64 $5,028,306 0.51 % 1.15% to 1.65% 28.55 % to 29.18 % 2016 265,255 15.51 to 16.75 4,343,972 0.61 % 1.15% to 1.65% 0.33 % to 0.82 % 2015 296,963 15.46 to 16.62 4,830,034 0.34 % 1.15% to 1.65% 1.72 % to 2.22 % 2014 330,376 15.20 to 16.26 5,264,246 0.36 % 1.15% to 1.65% 11.80 % to 12.35 % 2013 378,975 13.59 to 14.47 5,383,121 0.40 % 1.15% to 1.65% 30.27 % to 30.92 % Janus Henderson (3) VIT Balanced Portfolio (Service Shares) (4) 2017 303,581 $23.50 to $25.51 $7,588,977 1.36 % 1.15% to 1.65% 16.22 % to 16.80 % 2016 365,427 20.22 to 21.84 7,835,085 1.92 % 1.15% to 1.65% 2.63 % to 3.14 % 2015 415,466 19.70 to 21.18 8,648,755 1.64 % 1.15% to 1.65% (1.22 %) to (0.73 %) 2014 455,669 19.94 to 21.33 9,573,521 1.52 % 1.15% to 1.65% 6.48 % to 7.01 % 2013 481,772 18.73 to 19.94 9,467,875 2.03 % 1.15% to 1.65% 17.86 % to 18.44 % VIT Enterprise Portfolio (Service Shares) (5) 2017 34,338 $27.39 to $29.74 $999,313 0.54 % 1.15% to 1.65% 25.03 % to 25.65 % 2016 37,042 21.91 to 23.67 858,570 0.71 % 1.15% to 1.65% 10.28 % to 10.83 % 2015 40,796 19.87 to 21.36 854,013 0.76 % 1.15% to 1.65% 2.08 % to 2.59 %

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 2014 44,187 19.46 to 20.82 902,458 0.03 % 1.15% to 1.65% 10.42 % to 10.97 % 2013 45,772 17.62 to 18.76 843,531 0.36 % 1.15% to 1.65% 29.90 % to 30.54 % VIT Forty Portfolio (Institutional Shares) (6) 2017 767,655 $17.72 to $19.34 $14,477,677 0.00 % 1.15% to 1.65% 28.21 % to 28.84 % 2016 875,848 13.82 to 15.01 12,830,110 0.84 % 1.15% to 1.65% 0.54 % to 1.03 % 2015 968,010 13.75 to 14.86 14,060,967 1.20 % 1.15% to 1.65% 10.40 % to 10.94 % 2014 1,074,698 12.45 to 13.39 14,086,238 0.16 % 1.15% to 1.65% 6.97 % to 7.50 % 2013 1,246,128 11.64 to 12.46 15,204,955 0.71 % 1.15% to 1.65% 29.10 % to 29.74 % PIMCO Variable Insurance Trust Administrative Class Shares VIT Foreign Bond Portfolio (U.S. Dollar-Hedged) 2017 139,421 $19.78 to $21.59 $2,934,264 4.49 % 1.15% to 1.65% 1.10 % to 1.60 % 2016 157,904 19.56 to 21.25 3,270,398 1.42 % 1.15% to 1.65% 4.75 % to 5.26 % 2015 185,588 18.68 to 20.19 3,660,395 3.05 % 1.15% to 1.65% (1.34 %) to (0.85 %) 2014 199,466 18.93 to 20.36 3,975,403 1.82 % 1.15% to 1.65% 9.36 % to 9.90 % 2013 228,295 17.31 to 18.53 4,150,358 1.88 % 1.15% to 1.65% (1.13 %) to (0.64 %) VIT Low Duration Portfolio 2017 240,757 $14.23 to $15.53 $3,636,182 1.34 % 1.15% to 1.65% (0.29 %) to 0.20 % 2016 252,732 14.27 to 15.50 3,815,646 1.49 % 1.15% to 1.65% (0.24 %) to 0.25 % 2015 283,455 14.30 to 15.46 4,278,611 3.36 % 1.15% to 1.65% (1.31 %) to (0.83 %) 2014 316,064 14.50 to 15.59 4,818,912 1.13 % 1.15% to 1.65% (0.79 %) to (0.30 %) 2013 349,983 14.61 to 15.64 5,362,655 1.48 % 1.15% to 1.65% (1.76 %) to (1.27 %)

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Farmers Annuity Separate Account A of Farmers New World Life Insurance Company (A wholly owned subsidiary of Farmers Group, Inc.) Notes to Financial Statements December 31, 2017

6. Financial Highlights

At December 31 For the Period Ended December 31 Investment Expense Ratio Unit Income ** Total Return *** Units Fair Value Net Assets Ratio* Lowest to Highest Lowest to Highest Principal Variable Contracts Funds, Inc. (PVC) Class 2 Shares Equity Funds Capital Appreciation Account 2017 38,886 $25.71 to $27.36 $1,041,202 1.04 % 1.15% to 1.65% 18.51% to 19.09% 2016 41,851 21.69 to 22.98 943,890 0.92 % 1.15% to 1.65% 7.09 % to 7.62 % 2015 45,048 20.26 to 21.35 947,022 0.04 % 1.15% to 1.65% 0.28 % to 0.78 % 2014 45,448 20.20 to 21.19 949,613 2.94 % 1.15% to 1.65% 10.37% to 10.92% 2013 49,131 18.30 to 19.10 927,366 6.23 % 1.15% to 1.65% 30.13% to 30.77% Equity Income Account 2017 212,249 $29.82 to $32.38 $6,728,090 2.03 % 1.15% to 1.65% 18.81% to 19.40% 2016 231,183 25.10 to 27.12 6,142,242 2.49 % 1.15% to 1.65% 13.56% to 14.12% 2015 254,917 22.10 to 23.76 5,940,448 2.24 % 1.15% to 1.65% (5.71 %) to (5.24 %) 2014 272,403 23.44 to 25.08 6,711,459 2.15 % 1.15% to 1.65% 10.64% to 11.18% 2013 296,133 21.19 to 22.56 6,568,117 2.68 % 1.15% to 1.65% 24.96% to 25.58% MidCap Account 2017 31,961 $129.15 to $140.21 $4,425,928 0.33 % 1.15% to 1.65% 23.17% to 23.77% 2016 34,456 104.85 to 113.28 3,851,942 0.14 % 1.15% to 1.65% 8.32 % to 8.86 % 2015 39,088 96.80 to 104.06 4,012,607 0.27 % 1.15% to 1.65% (0.27 %) to 0.22 % 2014 42,905 97.06 to 103.83 4,398,551 0.29 % 1.15% to 1.65% 10.87% to 11.42% 2013 46,262 87.54 to 93.19 4,258,061 1.22 % 1.15% to 1.65% 31.42% to 32.06% SmallCap Account 2017 130,261 $11.62 to $11.78 $1,531,219 0.15 % 1.15% to 1.65% 10.75% to 11.29% 2016 136,128 10.49 to 10.58 1,438,649 0.08 % 1.15% to 1.65% 15.25% to 15.82% 2015 (7) 145,325 9.10 to 9.14 1,327,024 0.06 % 1.15% to 1.65% (7.62 %) to (7.30 %) 2014 NA NA to NA NA NA NA to NA NA to NA 2013 NA NA to NA NA NA NA to NA NA to NA Principal Variable Contracts Funds, Inc. (PVC) Class 2 Shares Strategic Asset Management (SAM) Portfolios SAM Balanced Portfolio 2017 1,191,201 $23.65 to $25.51 $29,720,177 1.90 % 1.15% to 1.65% 13.02% to 13.57% 2016 1,328,646 20.93 to 22.46 29,222,304 1.88 % 1.15% to 1.65% 4.89 % to 5.41 % 2015 1,437,446 19.95 to 21.31 30,049,566 2.66 % 1.15% to 1.65% (2.69 %) to (2.21 %) 2014 1,557,535 20.50 to 21.79 33,342,013 2.52 % 1.15% to 1.65% 4.86 % to 5.38 % 2013 1,711,911 19.55 to 20.68 34,793,918 2.14 % 1.15% to 1.65% 15.42% to 15.99% SAM Conservative Balanced Portfolio 2017 299,710 $20.56 to $22.18 $6,531,528 2.51 % 1.15% to 1.65% 9.34 % to 9.88 % 2016 330,266 18.81 to 20.18 6,557,492 2.28 % 1.15% to 1.65% 4.35 % to 4.87 % 2015 360,792 18.02 to 19.25 6,833,628 2.99 % 1.15% to 1.65% (2.54 %) to (2.06 %)

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 2014 399,852 18.49 to 19.65 7,735,999 2.77 % 1.15% to 1.65% 4.20 % to 4.71 % 2013 416,656 17.75 to 18.77 7,708,107 2.57 % 1.15% to 1.65% 9.44 % to 9.98 % SAM Conservative Growth Portfolio 2017 924,076 $26.03 to $28.07 $25,355,137 1.33 % 1.15% to 1.65% 17.53% to 18.11% 2016 1,040,122 22.15 to 23.77 24,195,688 1.22 % 1.15% to 1.65% 5.03 % to 5.55 % 2015 1,159,585 21.09 to 22.52 25,596,857 1.97 % 1.15% to 1.65% (2.95 %) to (2.47 %) 2014 1,331,501 21.73 to 23.09 30,177,841 1.61 % 1.15% to 1.65% 5.40 % to 5.92 % 2013 1,408,583 20.61 to 21.80 30,194,503 1.54 % 1.15% to 1.65% 20.83% to 21.43% SAM Flexible Income Portfolio 2017 348,046 $18.65 to $20.11 $6,912,237 2.99 % 1.15% to 1.65% 6.38 % to 6.91 % 2016 396,790 17.53 to 18.81 7,383,332 3.07 % 1.15% to 1.65% 5.00 % to 5.52 % 2015 450,311 16.69 to 17.83 7,928,049 3.38 % 1.15% to 1.65% (3.14 %) to (2.66 %) 2014 517,166 17.23 to 18.32 9,363,379 3.38 % 1.15% to 1.65% 4.08 % to 4.59 % 2013 517,652 16.56 to 17.51 8,969,543 3.28 % 1.15% to 1.65% 5.71 % to 6.24 % SAM Strategic Growth Portfolio 2017 646,165 $27.59 to $29.76 $18,798,198 1.22 % 1.15% to 1.65% 19.97% to 20.56% 2016 738,794 23.00 to 24.68 17,849,151 1.22 % 1.15% to 1.65% 4.19 % to 4.70 % 2015 814,891 22.07 to 23.57 18,837,936 1.98 % 1.15% to 1.65% (3.46 %) to (2.99 %) 2014 916,227 22.87 to 24.30 21,863,426 1.35 % 1.15% to 1.65% 6.60 % to 7.12 % 2013 959,879 21.45 to 22.69 21,418,735 1.13 % 1.15% to 1.65% 25.03% to 25.65%

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Farmers Annuity Separate Account A of Farmers New World Life Insurance Company (A wholly owned subsidiary of Farmers Group, Inc.) Notes to Financial Statements December 31, 2017

6. Financial Highlights

(3) The Janus Aspen Family of Funds was rebranded to Janus Henderson VIT, effective June 5, 2017. (4) The Janus Aspen Balanced Portfolio subaccount changed its name to Janus Henderson VIT Balanced portfolio, effective June 5, 2017. (5) The Janus Enterprise Balanced Portfolio subaccount changed its name to Janus Henderson VIT Enterprise portfolio, effective June 5, 2017. (6) The Janus Forty Balanced Portfolio changed its name to Janus Henderson VIT Forty Balanced portfolio, effective June 5, 2017. (7) For the period (commencement of operations): April 17, 2015 to December 31, 2015 - PVC SmallCap Blend Account II. Effective April 17, 2015, the PVC SmallCap Growth Account II Subaccount merged with the PVC SmallCap Blend Account II Subaccount. The PVC SmallCap Blend Account II was the surviving subaccount. * These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges and contract maintenance charges, that are assessed against contractholder accounts either through reductions in the unit values or the redemption of units. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccount invests. ** These amounts represent the annual contract expenses of the Account, consisting of mortality and expense, administration, Guaranteed Minimum Death benefit rider, and Guaranteed Retirement Income benefit rider charges for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Contract maintenance charges made directly to contractholder accounts through the redemption of units and expenses of the underlying fund have been excluded. *** These amounts represent the total return for the period indicated, including changes in value of the underlying fund, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for each period indicated or from the effective date through the end of the reporting period. As the total return is presented as a range of minimum to maximum values, based on the product grouping representing the minimum and maximum expense ratio amounts, some individual policy total returns are not within the ranges presented.

7. Subsequent Events The Company has evaluated the effects of events subsequent to December 31, 2017, and through the financial statements report date. There have been no events occurring subsequent to the close of the Companys books or accounts that would have a material effect on the accompanying financial statements or note disclosures.

Item 24. Financial Statements and Exhibits (a) Financial Statements. All required financial statements are included in Part B of this Registration Statement.

(b) Exhibits. (1) Certified resolution of the Board of Directors of Farmers New World Life Insurance Company (the Company) authorizing establishment of Farmers Annuity Separate Account A (the Separate Account).1 (2) Not applicable. (3) (a) Distribution Agreement between Farmers New World Life Insurance Company and Investors Brokerage Services, Inc.2 (b) Investors Brokerage Services, Inc. Registered Representative Agreement.2 (c) Distribution Agreement between Farmers New World Life Insurance Company and Farmers Financial Solutions, LLC.3 (d) Farmers Financial Solutions, LLC Registered Representative Agreement.3 (e) Amended and Restated Distribution Agreement between Farmers New World Life Insurance Company and Farmers Financial Solutions, LLC.11 (f) Amended and Restated Distribution Agreement between Farmers New World Life Insurance Company and Farmers Financial Solutions, LLC.14 (g) First Amendment to the Amended and Restated Distribution Agreement between Farmers New World Life Insurance Company and Farmers Financial Solutions, LLC.19 (4) (a) Revised Form of Contract for the Individual Flexible Premium Variable Annuity.2 (b) Revised Guaranteed Minimum Death Benefit Rider.2 (c) Revised Guaranteed Retirement Income Benefit Rider.2 (d) Waiver of Surrender Charge Rider Terminal Illness.2 (e) Waiver of Surrender Charge Rider Nursing Care.2 (f) Savings Incentive Match Plan for Employees (SIMPLE) Individual Retirement Annuity Amendment Rider.4, 8 (g) Individual Retirement Annuity Amendment Rider.4, 8 (h) Roth Individual Retirement Annuity Endorsement.4, 8 (i) Final Contract for the Individual Flexible Premium Variable Annuity.9 (j) Revised Variable Contract Facing Page (2004).10 (5) (a) Form of Application for the Individual Flexible Premium Variable Annuity.2 (b) Form of Variable Policy Application Supplement.5 (c) Revised Variable Policy Application Supplement.4, 6 (d) Revised Variable Policy Application Supplement (2004) 9 (e) Revised Variable Policy Application Supplement (2007).12 (f) Variable Policy Application Supplement (May 2008).15 (6) (a) Articles of Incorporation of Farmers New World Life Insurance Company.7 (b) By-Laws of Farmers New World Life Insurance Company.7

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document (c) Amended Articles of Incorporation of Farmers New World Life Insurance Company (May 1, 2007).13 (d) Revised and Restated By-Laws of Farmers New World Life Insurance Company (July 23, 2009).19

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents (e) Revised and Restated By-Laws of Farmers New World Life Insurance Company (July 15, 2010).20 (f) Revised and Restated By-Laws of Farmers New World Life Insurance Company (February 27, 2013).22 (g) Revised and Restated By-Laws of Farmers New World Life Insurance Company (May 27, 2015).25 (h) Amended Articles of Incorporation of Farmers New World Life Insurance Company (February 27, 2018).25 (7) (a) Reinsurance Agreement between Farmers New World Life Insurance Company and RGA Reinsurance Company Effective April 1, 2017. 26 (b) Amendment One to the Reinsurance Agreement Effective April 1, 2017, between Farmers New World Life Insurance Company and RGA Insurance Company. 26 (8) (a) Participation Agreement among Kemper Variable Series, Scudder Kemper Investments, Inc., Kemper Distributors, Inc. and Farmers New World Life Insurance Company.5 (b) Participation Agreement between Scudder Variable Life Investment Fund and Farmers New World Life Insurance Company.5 (c) Indemnification Agreement between Scudder Kemper Investments, Inc. and Farmers New World Life Insurance Company.5 (d) Participation Agreement (Institutional Shares) among Janus Aspen Series, Janus Capital Corporation and Farmers New World Life Insurance Company.5 (e) Participation Agreement among Farmers New World Life Insurance Company, PIMCO Variable Insurance Trust and PIMCO Funds Distributors LLC.5 (f) Participation Agreement among Franklin Templeton Variable Insurance Products Trust, Franklin Templeton Distributors, Inc. and Farmers New World Life Insurance Company.2 (g) Consulting Services Agreement between McCamish Systems, LLC and Farmers New World Life Insurance Company.2 (h) Form of Master Administration Agreement between McCamish Systems, LLC and Farmers New World Life Insurance Company.2 (i) Amendment No. 1 to Participation Agreement among Franklin Templeton Variable Insurance Products Trust, Franklin Templeton Distributors, Inc. and Farmers New World Life Insurance Company.3 (j) Amendment No. 2 to Participation Agreement among Franklin Templeton Variable Insurance Products Trust, Franklin Templeton Distributors, Inc. and Farmers New World Life Insurance Company.3 (k) Amendment No. 1 to Participation Agreement among Farmers New World Life Insurance Company, PIMCO Variable Insurance Trust and PIMCO Funds Distributors LLC.3 (l) Amendment No. 1 to Participation Agreement between Scudder Variable Life Investment Fund and Farmers New World Life Insurance Company.3 (m) Participation Agreement among Calvert Variable Series, Inc., Calvert Distributors, Inc. and Farmers New World Life Insurance Company.3 (n) Participation Agreement between Dreyfus Variable Investment Fund and the Dreyfus Socially Responsible Growth Fund, Inc., and Farmers New World Life Insurance Company.3 (o) Participation Agreement among Goldman Sachs Variable Insurance Trust, Goldman, Sachs & Co. and Farmers New World Life Insurance Company.3 (p) Participation Agreement (Service Shares) among Janus Aspen Series, Janus Capital Corporation and Farmers New World Life Insurance Company.3 (q) Participation Agreement among Variable Insurance Products Funds, Fidelity Distributors Corporation and Farmers New World Life Insurance Company.3

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents (r) Participation Agreement among WM Variable Trust, WM Funds Distributor, Inc. and Farmers New World Life Insurance Company.3 (s) Amendment No. 1 to Participation Agreement among WM Variable Trust, WM Funds Distributor, Inc. and Farmers New World Life Insurance Company.6 (t) Master Administration Agreement between McCamish Systems, LLC and Farmers New World Life Insurance Company dated as of April 1, 2001. 6 (u) Amendment No. 2 to Participation Agreement among WM Variable Trust, WM Funds Distributor, Inc. and Farmers New World Life Insurance Company.4 (v) Form of Amendment No. 4 to Participation Agreement among Franklin Templeton Variable Insurance Products Trust, Franklin Templeton Distributors, Inc. and Farmers New World Life Insurance Company.10 (w) Form of Rule 22c-2 Shareholder Information Agreement.12 (x) Supplement to Participation Agreement among DWS Variable Series II, Deutsche Investment Management Americas, Inc., DWS Scudder Distributors, Inc. and Farmers New World Life Insurance Company.12 (y) Letter of Understanding and Extension of WM Participation Agreement, among Principal Funds Distributor, Inc., and Farmers New World Life Insurance Company, dated as of January 5, 2007.12 (z) Amendment to the Participation Agreement among Variable Insurance Products Funds, Variable Insurance Products Fund II, Variable Insurance Product Fund III, Variable Insurance Product Fund IV and Variable Insurance Product Fund V, Fidelity Distributors Corporation, and Farmers New World Life Insurance Company.15 (aa) Amendment No. 3 to the Participation Agreement among Franklin Templeton Variable Insurance Products Trust, Franklin Templeton Distributors, Inc., and Farmers New World Life Insurance Company.15 (bb) Amendment to the Participation Agreement among Franklin Templeton Variable Insurance Products Trust, Franklin Templeton Distributors, Inc., and Farmers New World Life Insurance Company.15 (cc) Participation Agreement among Principal Funds Distributors, Inc. and Farmers New World Life Insurance Company.16 (dd) Amendment No. 3 to the Participation Agreement among Deutsche Investment Management Americas, Inc., DWS Variable Series I (formerly Kemper Variable Series), DWS Scudder Distributors, Inc. and Farmers New World Life Insurance Company.16 (ee) Amendment No. 2 to the Participation Agreement among Deutsche Investment Management Americas, Inc., DWS Variable Series II, DWS Scudder Distributors, Inc. and Farmers New World Life Insurance Company.16 (ff) Amendment No. 2 to the Participation Agreement among Variable Insurance Products Funds, Variable Insurance Products Fund II, Variable Insurance Product Fund III, Variable Insurance Product Fund IV and Variable Insurance Product Fund V, Fidelity Distributors Corporation, and Farmers New World Life Insurance Company.16 (gg) Amendment No. 6 to the Participation Agreement among Franklin Templeton Variable Insurance Products Trust, Franklin Templeton Distributors, Inc., and Farmers New World Life Insurance Company.16 (hh) Amendment No. 1 to the Participation Agreement among Janus Aspen Series (Institutional Shares), Janus Capital Corporation and Farmers New World Life Insurance Company.16 (ii) Amendment No. 1 to the Participation Agreement among Janus Aspen Series (Service Shares), Janus Capital Corporation and Farmers New World Life Insurance Company.16 (jj) Amendment No. 2 to the Participation Agreement among PIMCO Variable Insurance Trust, PIMCO Funds Distributors LLC, and Farmers New World Life Insurance Company.16 (kk) First Amendment to Participation Agreement among Principal Funds Distributors, Inc. and Farmers New World Life Insurance Company.18

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents (ll) Novation of and Amendment to Participation Agreement among Allianz Global Investors Distributors LLC (AGID), PIMCO Investments LLC (PI), PIMCO Variable Insurance Trust and Farmers New World Life Insurance Company (March 10, 2011).20 (mm) Supplement to Participation Agreement Dated March 10, 2000 among DWS Variable Series II (DWSVS II), Deutsche Investment Management Americas Inc., DWS Investments Distributors, Inc. and Farmers New World Life Insurance Company.20 (nn) Assignment and Amendment by and among PIMCO Variable Insurance Trust and Farmers New World Life Insurance Company.21 (oo) Amendment to Participation Agreement by and among PIMCO Variable Insurance Trust, PIMCO Investments LLC and Farmers New World Life Insurance Company (January 28, 2013.)22 (pp) Amendment to Participation Agreement Dated April 14, 2000 between DWS Variable Series I, Deutsche Investment Management Americas, Inc, DWS Investments Distributors, Inc. and Farmers New World Life Insurance Company (February 4, 2013.)22 (qq) Amendment to Participation Agreement Dated April 23, 2003 between DWS Investment VIT funds, Deutsche Investment Management Americas, Inc., DWS Distributors, Inc. and Farmers New World Life Insurance Company (February 4, 2013.)22 (rr) Amendment to Participation Agreement Dated March 10, 2000 between DWS Variable Series II, Deutsche Investment Management Americas, Inc., DWS Distributors, Inc., and Farmers New World Life Insurance Company (February 4, 2013.)22 (ss) Amendment to Participation Agreement Dated May 15, 2000 between Franklin/Templeton Distributors. Inc. and Farmers New World Life Insurance Company (January 15, 2013.) 22 (tt) Participation Agreement Addendum to Participation Agreement Dated May 15, 2000 by and among Franklin Templeton Variable Insurance Products Trust, Franklin/Templeton Distributors, Inc. and Farmers New World Life Insurance Company (2012.)22 (uu) Amendment to Participation Agreement Dated May 15, 2000 by and between Goldman Sachs Variable Insurance Trust, Goldman Sachs and Co., and Farmers New World Life Insurance Company (January 28, 2013.)22 (vv) Amendment to the Fund Participation Agreement dated April 20, 2001 between Dreyfus and Farmers New World Life Insurance Company (April 5, 2013.)22 (ww) Amendment to the Letter Agreement between Deutsche Investment Management Americas Inc. and Farmers New World Life Insurance Company (January 1, 2015).24 (xx) Amendment to the Indemnification Agreement between Deutsche Investment Management Americas Inc. and Farmers New World Life Insurance Company (January 1, 2015).24 (yy) Second Amendment dated as of April 7, 2016 to the Participation Agreement dated August 25, 2008 by and among Principal Variable Contracts Funds, Inc., (formerly Principal Variable Contracts Fund, Inc.), Principal Funds Distributor, Inc., and Farmers New World Life Insurance Company.24 (zz) Termination of Participation Agreement, dated March 28, 2001, among Calvert Variable Series, Inc., Calvert Distributors, Inc., and Farmers New World Life Insurance Company dated September 19, 2017, and effective December 30, 2016.25 (aaa) Fund Participation Agreement among Eaton Vance Distributors, Inc., Calvert Variable Series, Inc., and Farmers New World Life Insurance Company dated October 23, 2017, and effective December 30, 2016.25 (9) Opinion and Consent of Garrett B. Paddor, Esquire.26 (10) (a) Consent of PricewaterhouseCoopers LLP.26 (b) Consent of Deloitte & Touche LLP.8 (11) Not applicable. (12) Not applicable. (13) Schedule of Performance Computations.3, 5

1 Incorporated herein by reference to the initial registration statement on Form N-4 for Farmers Annuity Separate Account A filed with the SEC on August 13, 1999 (File Nos. 333-85183 and 811-09547).

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents 2 Previously Filed in Pre-Effective Amendment No. 1 to this registration statement on Form N-4 for Farmers Annuity Separate Account A filed with the SEC on November 15, 1999 (File Nos. 333-85183 and 811-09547). 3 Previously Filed in Post-Effective Amendment No. 2 to this registration statement on Form N-4 for Farmers Annuity Separate Account A filed with the SEC on April 27, 2001 (File Nos. 333-85183 and 811-09547). 4 Previously Filed in Post-Effective Amendment No. 4 to this registration statement on Form N-4 for Farmers Annuity Separate Account A filed with the SEC on August 27, 2002 (File Nos. 333-85183 and 811-09547). 5 Previously Filed in No. 1 to this registration statement on Form N-4 for Farmers Annuity Separate Account A filed with the SEC on April 21, 2000 (File Nos. 333-85183 and 811-09547). 6 Previously Filed in Post-Effective Amendment No. 3 to this registration statement on Form N-4 for Farmers Annuity Separate Account A filed with the SEC on April 26, 2002 (File Nos. 333-85183 and 811-09547). 7 Incorporated herein by reference to the initial registration statement on Form S-6 for Farmers Variable Life Separate Account A filed with the SEC on April 28, 2003 (File Nos. 333-85183 and 811-09547). 8 Previously Filed in Post-Effective Amendment No. 5 to this registration statement on Form N-4 for Farmers Annuity Separate Account A filed with the SEC on April 28, 2003 (File Nos. 333-85183 and 811-09547). 9 Previously Filed in Post-Effective Amendment No. 6 to this registration statement on Form N-4 for Farmers Annuity Separate Account A filed with the SEC on April 27, 2004 (File Nos. 333-85183 and 811-09547). 10 Previously filed in Post-Effective Amendment No. 7 to this registration statement on Form N-4 for Farmers Annuity Separate Account A filed with the SEC on April 28, 2005 (File Nos. 333-85183 and 811-09547). 11 Previously Filed in Post-Effective Amendment No. 8 to this registration statement on Form N-4 for Farmers Annuity Separate Account A filed with the SEC on April 26, 2006 (File Nos. 333-85183 and 811-09547). 12 Previously Filed in Post-Effective Amendment No. 9 to this registration statement on Form N-4 for Farmers Annuity Separate Account A filed with the SEC on April 25, 2007 (File Nos. 333-85183 and 811-09547). 13 Incorporated herein by reference to the initial registration statement on Form N-6 for Farmers Variable Life Separate Account A filed with the SEC on March 4, 2008 (File Nos. 333-149540 and 811-09507). 14 Previously Filed in Post-Effective Amendment No. 10 on Form N-4 for Farmers Variable Annuity Separate Account A filed with the SEC on April 29, 2008 (File Nos. 333-85183 and 811-09547). 15 Incorporated herein by reference to the Pre-Effective Amendment No. 1 to registration statement on Form N-6 for Farmers 16 Incorporated herein by reference to the Pre-Effective Amendment No. 2 to registration statement on Form N-6/A for Farmers Variable Life Separate Account A filed with the SEC on August 27, 2008 (File Nos. 333-149540 and 811-09507). 17 Previously filed in Post-Effective Amendment No. 12 on Form N-4 for Farmers Variable Annuity Separate Account A filed with the SEC on April 24, 2009 (File Nos. 333-85183 and 811-09547). 18 Previously filed in Post Effective Amendment No. 13 on form N-4 for Farmers Variable Annuity Separate Account A filed with the SEC on October 22, 2009 (File Nos. 333-85183 and 811-09547). 19 Incorporated herein by reference to Post-Effective Amendment No. 2 to registration statement on Form N-6 for Farmers Variable Life Separate Account A filed with the SEC on April 30, 2010 (File Nos. 333-149540 and 811-09507). 20 Incorporated herein by reference to Post-Effective Amendment No. 3 to registration statement on Form N-6 for Farmers Variable Life Separate Account A filed with the SEC on April 29, 2011 (File Nos. 333-149540 and 811-09507). 21 Incorporated herein by reference to Post-Effective Amendment No. 4 to registration statement on Form N-6 for Farmers Variable Life Separate Account A filed with the SEC on April 30, 2012 (File Nos. 333-149540 and 811-09507). 22 Incorporated herein by reference to Post-Effective Amendment No. 5 to registration statement on Form N-6 for Farmers Variable Life Separate Account A filed with the SEC on April 30, 2013 (File Nos. 333-149540 and 811-09507). 23 Incorporated herein by reference to Post-Effective Amendment No. 19 to registration statement on Form N-4 for Farmers Annuity Separate Account A filed with the SEC on April 30, 2014. 24 Incorporated herein by reference to Post-Effective Amendment No. 8 to registration statement on Form N-6 for Farmers Variable Life Separate Account A filed with the SEC on April 29, 2016 (File Nos. 333-149540 and 811-09507). 25 Incorporated herein by reference to Post-Effective Amendment No. 10 to registration statement on Form N-6 for Farmers Variable Life Separate Account A filed with the SEC on May 21, 2018 (File Nos. 333-149540 and 811-09507). 26 Filed herewith.

Name and Principal Business Address Position and Office with Depositor Jeff Dailey1 Director and Chairman of the Board Diane Davis2 Director, CEO and President Richard Kearns4 Director Scott Lindquist1 Director and Assistant Treasurer Annette Thompson5 Director David Travers7 Director Warren Tucker8 Director Michael Rohwetter6 Chief Investment Officer Paula Gospel2 Chief Risk Officer Catherine M. Hall2 Chief Compliance Officer Kelly Rabin2 Chief Actuary Keith A. Terry2 Appointed Actuary Joel Kuni2 Illustration Actuary Leeann G. Badgett2 Treasurer Erinn Bollinger2 Chief Claims Officer Robert Gibson2 38a-1 Chief Compliance Officer Garrett B. Paddor2 General Counsel and Corporate Secretary Anthony Morris3 Assistant Treasurer Margaret S. Giles1 Assistant Secretary Doren E. Hohl1 Assistant Secretary Nicole J. Pryor1 Assistant Secretary Harris K. Mortensen2 Assistant Secretary

1 The principal business address is 6301 Owensmouth Ave., Woodland Hills, CA 91367. 2 The principal business address is 3003 77th Ave SE, Mercer Island, WA 98040 3 The principal business address is 4750 Wilshire Boulevard, Los Angeles, CA 90010. 4 The principal business address is 205 Charles St., East Williston, NY 11596. 5 The principal business address is 735 Avenida Alcola, Arroyo Grande, CA 93420. 6 The principal business address is 4 World Trade Center, 150 Greenwich St., New York, NY 10007. 7 The principal business address is 15700 Long Vista Dr., Austin, TX 78728. 8 The principal business address is 9618 SW Quartermaster Dr., Vashon, WA 98070.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Item 28. Persons Controlled by or Under Common Control with the Insurance Company or Registrant Organizations Affiliated with Zurich U.S. Insurance Group

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Company Domicile Ownership % 17-40 Direct Limited GBR Endsleigh Insurance Services Limited 100.00000 2Plan Group Limited GBR Openwork Independent Solutions Limited 100.00000 2Plan Limited GBR 2Plan Group Limited 100.00000 2Plan Wealth Management Limited GBR 2Plan Group Limited 100.00000 307-309 Atlantic Avenue Acquisition LLC DE Zurich American Insurance Company 100.00000 Access Franchise Management Limited GBR Zurich Assurance Ltd 100.00000 ACN 000 141 051 Ltd. AUS Zurich Financial Services Australia Limited 100.00000 ADAC Autoversicherung AG Zürich Beteiligungs-Aktiengesellschaft DEU (Deutschland) 51.00000 Afterland Limited GBR Zurich Assurance Ltd 100.00000 AG Haus der Wirtschaft CHE Zurich Versicherungs-Gesellschaft AG 8.16327 Allied Dunbar Asset Management plc GBR Allied Dunbar Assurance plc 99.99933 Allied Dunbar Asset Management plc GBR Zurich Trustee Company (UK) Limited 0.00067 Allied Dunbar Assurance plc Zurich Financial Services (UKISA) Nominees GBR Limited 100.00000 Allied Dunbar Financial Services Limited GBR Allied Dunbar Assurance plc 100.00000 Allied Dunbar Healthcare Marketing Limited GBR Allied Dunbar Assurance plc 100.00000 Allied Dunbar Property Services Limited GBR Allied Dunbar Assurance plc 100.00000 Allied Dunbar Provident plc GBR Allied Dunbar Assurance plc 99.99988 Allied Dunbar Provident plc GBR Zurich Trustee Company (UK) Limited 0.00012 Allied Zurich Holdings Limited JEY Zurich Versicherungs-Gesellschaft AG 100.00000 Allied Zurich Limited GBR Zurich Insurance Group Ltd. 100.00000 American Guarantee and Liability Insurance Company NY Zurich American Insurance Company 100.00000 American Zurich Insurance Company IL Steadfast Insurance Company 100.00000 Applyhere Pty Ltd AUS Davidson Trahaire Holding Pty Ltd 100.00000 Ashdale Land and Property Company Limited GBR Zurich Insurance plc 100.00000 Assistance Online (China) Co Ltd CHN Assistancee Online Pte. Ltd 100.00000 Assistancee Online HK Ltd HKG Assistancee Online HK Ltd 0.00000 Assistancee Online HK Ltd HKG Assistancee Online Pte. Ltd 100.00000 Assistancee Online Pte. Ltd SGP Customer Care Assistance Pty Ltd 100.00000 Associated Marine Insurers Agents Pty. Limited AUS Zurich Financial Services Australia Limited 100.00000 ASTIS Holdings Limited AUS Cover-More Finance Pty Limited 100.00000 Aust Office 1, LLC DE Zurich American Insurance Company 100.00000 Baden-Badener Versicherung Aktiengesellschaft Zurich Beteiligungs-Aktiengesellschaft DEU (Deutschland) 100.00000 Ballykilliane Holdings Limited IRL Zurich Insurance plc 100.00000 Bansabadell Pensiones, E.G.F.P, S.A. Zurich Vida, Companía de Seguros y Reaseguros, ESP S.A. - Socied 50.00000 Bansabadell Seguros Generales, S.A. de Seguros y Reaseguros ESP Zurich Versicherungs-Gesellschaft AG 50.00000 Bansabadell Servicios Auxiliares De Seguros, S.L. Bansabadell Seguros Generales, S.A. de Seguros y ESP Reaseguros 100.00000 Bansabadell Vida S.A. de Seguros y Reaseguros Zurich Vida, Companía de Seguros y Reaseguros, ESP S.A. - Socied 50.00000 Benefit Finance Partners, L.L.C. DE Zurich Benefit Finance LLC 50.00000 BFP Securities LLC DE Benefit Finance Partners, L.L.C. 100.00000 Bloomington Office LP DE Zurich Structured Finance, Inc. 99.00000 Bloomington Office MGP Manager, Inc DE Zurich Structured Finance, Inc. 100.00000 Bloomington Office MGP, LLC DE Zurich Structured Finance, Inc. 99.00000 Bloomington Office MGP, LLC DE Bloomington Office MGP Manager, Inc 1.00000 Blue Marble Capital L.P. BMU Blue Marble Micro Limited 100.00000 Blue Marble Micro Limited GBR Zürich Versicherungs-Gesellschaft AG 100.00000 Blue Marble Microinsurance, Inc. DE Blue Marble Micro Limited 100.00000 Bonnfinanz Aktiengesellschaft fur Vermogensberatung und Verm DEU Deutscher Herold Aktiengesellschaft 100.00000 Bonus Pensionskassen Aktiengesellschaft AUT Zurich Versicherungs-Aktiengesellschaft 87.50000

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document BONUS Vorsorgekasse AG AUT Zurich Versicherungs-Aktiengesellschaft 50.00000 BOS Apt 1, LLC DE Zurich American Insurance Company 100.00000 BOS Apt 2, LLC DE Zurich American Insurance Company 100.00000 BOS Office 2 LLC DE Zurich American Insurance Company 100.00000 BOS Office 3, LLC DE Farmers New World Life Insurance Company 100.00000 BOS Office 4, LLC DE Zurich American Insurance Company 100.00000 BOS Retail 1, LLC DE Zurich American Insurance Company 100.00000 Bright Box Europe S.A. CHE Bright Box HK Limited 100.00000 Bright Box HK Limited CHN Zürich Versicherungs-Gesellschaft AG 100.00000

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Company Domicile Ownership % Bright Box Hungary KFT HUN Bright Box HK Limited 100.00000 Bright Box Middle East FZCO ARE Bright Box HK Limited 100.00000 Brinker Retail MGP, LLC DE Zurich Structured Finance, Inc. 99.00000 Bristlecourt Limited GBR Zurich Assurance Ltd 100.00000 Cayley Aviation Ltd. BMU Zurich Insurance Company Ltd, Bermuda Branch 100.00000 Centre Group Holdings (U.S.) Limited DE Zurich Finance Company Ltd 100.00000 Centre Insurance Company DE Centre Solutions (U.S.) Limited 100.00000 Centre Kate Inc. 1 DE Zurich Structured Finance, Inc. 100.00000 Centre Life Insurance Company MA Centre Solutions (U.S.) Limited 100.00000 Centre Reinsurance (U.S.) Limited BMU Centre Group Holdings (U.S.) Limited 100.00000 Centre Solutions (Bermuda) Limited BMU Zurich Finance Company Ltd 100.00000 Centre Solutions (U.S.) Limited BMU Centre Group Holdings (U.S.) Limited 100.00000 CHI APT 1, LLC DE Zurich American Insurance Company 100.00000 CHI Industrial 1, LLC DE Farmers New World Life Insurance Company 100.00000 Chilena Consolidada Seguros de Vida S.A. CHL Inversiones Suizo Chilena S.A. 98.97703 Chilena Consolidada Seguros Generales S.A. CHL Chilena Consolidada Seguros de Vida S.A. 7.40525 Chilena Consolidada Seguros Generales S.A. CHL Inversiones Suizo Chilena S.A. 82.73165 City of London Insurance Company Limited GBR Eagle Star Insurance Company Limited 100.00000 COFITEM-COFIMUR FRA Zurich Versicherungs-Gesellschaft AG 12.40521 Collierville Center, LP DE Zurich Structured Finance, Inc. 99.00000 Collierville MGP Manager, Inc. DE Zurich Structured Finance, Inc. 100.00000 Collierville Office MGP, LLC DE Zurich Structured Finance, Inc. 99.00000 Collierville Office MGP, LLC DE Collierville MGP Manager, Inc. 1.00000 Colonial American Casualty and Surety Company MD Fidelity and Deposit Company of Maryland 100.00000 Community Trust Services Limited GBR Zurich Community Trust (UK) Limited 99.00000 Community Trust Services Limited Zurich Financial Services (UKISA) Nominees GBR Limited 1.00000 Concisa Vorsorgeberatung und Management AG AUT Bonus Pensionskassen Aktiengesellschaft 100.00000 Concourse Skelmersdale Limited GBR Zurich Financial Services (UKISA) Limited 100.00000 Cover-More (NZ) Limited NZL Cover-More Australia Pty Ltd 100.00000 Cover-More Asia Pte. Ltd SGP Travel Assist Pty Limited 100.00000 Cover-More Australia Pty Ltd AUS Cover-More Holdings Pty Ltd 100.00000 Cover-More Finance Pty Limited AUS Cover-More Group Limited 100.00000 Cover-More Group Limited AUS Zurich Travel Solutions Pty Limited 100.00000 Cover-More Holdings Pty Ltd AUS Travel Assist Pty Limited 100.00000 Cover-More Holdings USA Inc. DE Travel Assist Pty Limited 100.00000 Cover-More Inc. DE Cover-More Holdings USA Inc. 100.00000 Cover-More Insurance Services Limited GBR Cover-More Australia Pty Ltd 100.00000 Cover-More Insurance Services Pty Ltd AUS Travel Assist Pty Limited 100.00000 CP Holding Limited VGB Zurich Insurance Company Ltd, Bermuda Branch 100.00000 CREC (Birmingham), LLC DE Zurich Structured Finance, Inc. 100.00000 CREC (Durham), LLC DE Zurich Structured Finance, Inc. 100.00000 CTH Affordable Housing Corporation DE Zurich Structured Finance, Inc. 100.00000 CTH Affordable Housing Investor, Inc. DE CTH Affordable Housing Corporation 100.00000 CTH/Landmark SLP, Inc. IL CTH Affordable Housing Corporation 100.00000 Cursud N.V. ANT Zurich Versicherungs-Gesellschaft AG 100.00000 Customer Care Assistance Pty Ltd AUS Customer Care Holdings Pty Ltd 100.00000 Customer Care Holdings Pty Ltd AUS Travel Assist Pty Limited 100.00000 Customer Care Pty Ltd AUS Customer Care Holdings Pty Ltd 100.00000 DA Deutsche Allgemeine Versicherung Zürich Beteiligungs-Aktiengesellschaft Aktiengesellschaft DEU (Deutschland) 100.00000 Dallas Office MGP Manager, Inc. DE Zurich Structured Finance, Inc. 100.00000 Dallas Office MGP, LLC DE Zurich Structured Finance, Inc. 99.00000 Dallas Office MGP, LLC DE Dallas Office MGP Manager, Inc. 1.00000 Dallas Tower LP DE Zurich Structured Finance, Inc. 99.00000 Davidson Trahaire Corpsych (Singapore) Pte. Limited SGP DTC Bidco Pty Ltd 100.00000

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Davidson Trahaire Corpsych Pty Ltd AUS Davidson Trahaire Holding Pty Ltd 65.00000 Davidson Trahaire Corpsych Pty Ltd AUS Applyhere Pty Ltd 35.00000 Davidson Trahaire Holding Pty Ltd AUS DTC Australia Pty Ltd 100.00000 DB Vita S.A. LUX Deutscher Herold Aktiengesellschaft 25.00000 DC Apt 1, LLC DE Zurich American Insurance Company 100.00000 DC Retail 1, LLC DE Farmers New World Life Insurance Company 100.00000 Delta Wetlands Properties IL KLMLP 2, LLC 90.00000

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Company Domicile Ownership % Delta Wetlands Properties IL KLMLP 3, LLC 10.00000 DEN Industrial 1, LLC DE Zurich American Insurance Company 100.00000 DEN Retail 1 LLC DE Farmers New World Life Insurance Company 100.00000 Deutsche Zurich Pensiones, Entidad Gestora de Fondos Zurich Vida, Companía de Seguros y Reaseguros, de Pens ESP S.A. - Socied 50.00000 Deutscher Herold Aktiengesellschaft Zurich Beteiligungs-Aktiengesellschaft DEU (Deutschland) 79.82639 Deutscher Pensionsfonds Aktiengesellschaft DEU Deutscher Herold Aktiengesellschaft 74.90000 Deutsches Institut fur Altersvorsorge GmbH DEU Deutscher Herold Aktiengesellschaft 22.00000 Digital Insurance Group B.V. NLD Zürich Versicherungs-Gesellschaft AG 10.00000 Disability Management Services, Inc. CT Centre Group Holdings (U.S.) Limited 40.00000 DTC Australia Pty Ltd AUS DTC Bidco Pty Ltd 100.00000 DTC Bidco Pty Ltd AUS DTC Holdco Pty Ltd 100.00000 DTC Holdco Pty Ltd AUS ASTIS Holdings Limited 100.00000 DTC NZ Bidco Limited NZL DTC Bidco Pty Ltd 100.00000 Dunbar Assets Ireland IRL Zurich Finance Company Ltd 0.03664 Dunbar Assets Ireland IRL ZCMC II Holdings Limited 99.96335 Dunbar Assets plc GBR Dunbar Assets Ireland 100.00000 Dunbar Nominees Limited GBR Dunbar Assets plc 100.00000 Dunbar Sports and Social Club Limited GBR Allied Dunbar Assurance plc 100.00000 Eagle Star (Leasing) Limited GBR Zurich Assurance Ltd 100.00000 Eagle Star (Malta) Limited MLT Zurich Assurance Ltd 100.00000 Eagle Star Computer Services Limited GBR Zurich Assurance Ltd 100.00000 Eagle Star Direct (Camberley) Limited GBR Zurich Insurance Company (U.K.) Limited 100.00000 Eagle Star Direct Services Limited GBR Zurich UK General Services Limited 100.00000 Eagle Star Estates Limited GBR Zurich Assurance Ltd 100.00000 Eagle Star European Life Assurance Company Limited IRL Zurich Life Assurance plc 100.00000 Eagle Star Executives Pension Trustee Limited GBR Zurich Financial Services (UKISA) Limited 100.00000 Eagle Star Farms Limited GBR Zurich Assurance Ltd 100.00000 Eagle Star Forests Limited GBR Zurich Assurance Ltd 100.00000 Eagle Star Group Holdings Limited GBR Eagle Star Holdings Limited 100.00000 Eagle Star Group Services Limited GBR Eagle Star Holdings Limited 100.00000 Eagle Star Holding Company of Ireland IRL Eagle Star Group Holdings Limited 0.00006 Eagle Star Holding Company of Ireland IRL Zurich Assurance Ltd 99.99994 Eagle Star Holdings Limited GBR Zurich Financial Services (UKISA) Limited 100.00000 Eagle Star Insurance Company Limited GBR Zurich Versicherungs-Gesellschaft AG 100.00000 Eagle Star Loans Limited GBR Zurich Assurance Ltd 100.00000 Eagle Star Mortgages Limited GBR Zurich Assurance Ltd 100.00000 Eagle Star Securities Limited GBR Zurich Insurance plc 100.00000 Edilspettacolo SRL Zurich Insurance Company Ltd - Rappresentanza ITA Generale per l 35.71233 Empire Fire and Marine Insurance Company NE Zurich American Insurance Company 100.00000 Empire Indemnity Insurance Company OK Zurich American Insurance Company 100.00000 Employee Services Limited GBR Allied Dunbar Financial Services Limited 100.00000 Endsleigh Communications Limited GBR Endsleigh Insurance Services Limited 100.00000 Endsleigh Developments Limited GBR Endsleigh Insurance Services Limited 100.00000 Endsleigh General Trading Limited GBR Endsleigh Insurance Services Limited 100.00000 Endsleigh Independent Financial Services Limited GBR Endsleigh Insurance Services Limited 100.00000 Endsleigh Insurance Services Limited GBR Endsleigh Limited 100.00000 Endsleigh Insurances (Brokers) Limited GBR Endsleigh Insurance Services Limited 100.00000 Endsleigh Law Limited GBR Endsleigh Insurance Services Limited 100.00000 Endsleigh Leasing Limited GBR Endsleigh Insurance Services Limited 100.00000 Endsleigh Life & Pensions Limited GBR Endsleigh Insurance Services Limited 100.00000 Endsleigh Limited GBR Zurich Holdings (UK) Limited 100.00000 Endsleigh Pension Trustee Limited GBR Endsleigh Insurance Services Limited 100.00000 Endsleigh Promotions Limited GBR Endsleigh Insurance Services Limited 100.00000

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Endsleigh Shopfitting Limited GBR Endsleigh Insurance Services Limited 100.00000 Endsleigh Trustee Services Limited GBR Endsleigh Insurance Services Limited 100.00000 ES (Walsall) Nominee Limited GBR Zurich Assurance Ltd 100.00000 ES Camberley Nominee 1 Limited GBR Zurich Assurance Ltd 100.00000 ES Camberley Nominee 2 Limited GBR Zurich Assurance Ltd 100.00000 ES Cannock Nominee 1 Limited GBR Zurich Assurance Ltd 100.00000

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Company Domicile Ownership % ES Cannock Nominee 2 Limited GBR Zurich Assurance Ltd 100.00000 ES Coventry Nominee 1 Limited GBR Zurich Assurance Ltd 100.00000 ES Coventry Nominee 2 Limited GBR Zurich Assurance Ltd 100.00000 ES Dudley Nominee 1 Limited GBR Zurich Assurance Ltd 100.00000 ES Dudley Nominee 2 Limited GBR Zurich Assurance Ltd 100.00000 ES Hoddesdon Nominee 1 Limited GBR Zurich Assurance Ltd 100.00000 ES Plympton Nominee 1 Limited GBR Zurich Assurance Ltd 100.00000 ES Plympton Nominee 2 Limited GBR Zurich Assurance Ltd 100.00000 ES Ramsgate Nominee 1 Limited GBR Zurich Assurance Ltd 100.00000 ES Ramsgate Nominee 2 Limited GBR Zurich Assurance Ltd 100.00000 ESI Financing Limited GBR Eagle Star Insurance Company Limited 0.00011 ESI Financing Limited GBR Zurich Versicherungs-Gesellschaft AG 99.99989 Euclid KY Annex, LP DE Zurich Structured Finance, Inc. 99.00000 Euclid Office LP DE Zurich Structured Finance, Inc. 99.00000 Euclid Warehouses LP DE Zurich Structured Finance, Inc. 99.00000 Extremus Versicherung-Aktiengesellschaft Zurich Insurance plc Niederlassung fur DEU Deutschland 5.00000 Farmers Family Fund CA Farmers Group, Inc. 100.00000 Farmers Group, Inc. NV Zurich Versicherungs-Gesellschaft AG 87.90000 Farmers Group, Inc. NV Zurich Insurance Group Ltd. 12.10000 Farmers Life Insurance Company of New York NY Farmers New World Life Insurance Company 100.00000 Farmers New World Life Insurance Company WA Farmers Group, Inc. 100.00000 Farmers Reinsurance Company CA Farmers Group, Inc. 100.00000 Farmers Services Corporation NV Farmers Group, Inc. 100.00000 Farmers Services, LLC DE FIG Leasing Co., Inc. 100.00000 Farmers Underwriters Association CA Farmers Group, Inc. 100.00000 Fidelity and Deposit Company of Maryland MD Zurich American Insurance Company 100.00000 FIG Holding Company CA Farmers Group, Inc. 100.00000 FIG Leasing Co., Inc. CA Farmers Group, Inc. 100.00000 Figure Out Limited GBR 2Plan Group Limited 100.00000 Fire Underwriters Association CA Farmers Group, Inc. 100.00000 Fitsense Insurance Services Pty Ltd AUS Travel Assist Pty Limited 100.00000 Futuro de Bolivia S.A. Administradora de Fondos de Pensiones BOL Zurich Boliviana Seguros Personales S.A. 8.42193 Futuro de Bolivia S.A. Administradora de Fondos de Pensiones BOL Zurich South America Invest AB 71.57801 General Surety & Guarantee Co Limited GBR Zurich Insurance Company (U.K.) Limited 100.00000 Genevoise, Compagnie Immobiliere SA CHE Zurich Lebensversicherungs-Gesellschaft AG 100.00000 Grovewood Engineering Limited GBR Zurich Assurance Ltd 100.00000 Grovewood Property Holdings Limited GBR Eagle Star Holdings Limited 100.00000 Halo Holdco Limited GBR Cover-More Australia Pty Ltd 100.00000 Halo Holdco Limited GBR Zürich Versicherungs-Gesellschaft AG 0.00000 Halo Insurance Services Limited GBR Halo Holdco Limited 100.00000 Halo Insurance Services Pty Ltd AUS Halo Insurance Services Limited 100.00000 Hawkcentral Limited GBR Zurich Assurance Ltd 100.00000 Herengracht Investments B.V DEU RE Curve Holding B.V. 100.00000 Home & Overseas Insurance Company Limited GBR Eagle Star Insurance Company Limited 100.00000 Hoplite Reinsurance Company of Vermont, Inc. VT Zurich Holding Company of America, Inc. 100.00000 HOU IND 1, LLC DE Zurich American Insurance Company 100.00000 HOU IND 2, LLC DE Zurich American Insurance Company 100.00000 Independence Center Realty L.P. DE Philadelphia Investor, LLC 89.00000 INNATE, Inc. DC Cover-More Holdings USA Inc. 100.00000 INTEGRA Versicherungsdienst GmbH AUT Zurich Versicherungs-Aktiengesellschaft 100.00000 Inversiones Suizo Chilena S.A. CHL Inversiones Suizo-Argentina S.A. 0.00001 Inversiones Suizo Chilena S.A. CHL Zurich Versicherungs-Gesellschaft AG 99.99999 Inversiones Suizo-Argentina S.A. ARG Zurich Lebensversicherungs-Gesellschaft AG 5.00400

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Inversiones Suizo-Argentina S.A. ARG Zurich Versicherungs-Gesellschaft AG 94.99600 Inversiones ZS America Dos Limitada CHL Inversiones ZS America SpA 100.00000 Inversiones ZS America SpA CHL Zurich Santander Insurance America, S.L. 100.00000 Inversiones ZS America Tres SpA CHL Zurich Santander Insurance America, S.L. 100.00000 Inversora Alpina Financiadora de Primas, C.A. VEN Zurich Seguros, S.A. 100.00000 Irish National Insurance Company p.l.c. IRL Zurich Insurance plc 99.99999 Isis S.A. ARG Inversiones Suizo-Argentina S.A. 60.50140 Isis S.A. ARG Zurich Versicherungs-Gesellschaft AG 39.49860

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Company Domicile Ownership % Jewell Insurance Agency Ltd GBR Woodstock Insurance Brokers Limited 100.00000 JFS/ZSF 1997 L.P. VA Zurich Structured Finance, Inc. 99.00000 JFS/ZSF 1998, L.P. VA Zurich Structured Finance, Inc. 99.00000 Kansas City Office LP DE Zurich Structured Finance, Inc. 99.00000 Kansas Office MGP Manager, Inc. DE Zurich Structured Finance, Inc. 100.00000 Kansas Office MGP, LLC DE Zurich Structured Finance, Inc. 99.00000 Kansas Office MGP, LLC DE Kansas Office MGP Manager, Inc. 1.00000 Karvat Cover-More Assist. Pvt Ltd. IND Cover-More Asia Pte. Ltd 100.00000 Kennet Road 1 UK Limited GBR Zurich Assurance Ltd 100.00000 Kennet Road 2 UK Limited GBR Zurich Assurance Ltd 100.00000 KLMLP 2, LLC DE KLMLP, L.P. 100.00000 KLMLP 3, LLC DE KLMLP 2, LLC 100.00000 KLMLP, L.P. DE Zurich American Corporation 75.00000 Kono Insurance Limited HKG Zurich Versicherungs-Gesellschaft AG 100.00000 LA Industrial 1, LLC DE Zurich American Insurance Company 100.00000 LA Office 1, LLC DE Zurich American Insurance Company 100.00000 LA Retail 1 LLC DE Zurich American Insurance Company 100.00000 Limited Liability Company BRIGHT BOX RUS Bright Box HK Limited 100.00000 Limited Liability Company REMOTO RUS Bright Box HK Limited 100.00000 Logobrook Limited GBR Zurich Assurance Ltd 100.00000 Manon Vision Co., Ltd. THA Centre Solutions (Bermuda) Limited 0.00057 Manon Vision Co., Ltd. THA Zurich Finance Company Ltd 0.00066 Manon Vision Co., Ltd. THA Zurich Versicherungs-Gesellschaft AG 99.99877 MEATPACKING B.V. NLD Rock Inne Vastgoed B.V. 100.00000 Medidata AG CHE Zurich Versicherungs-Gesellschaft AG 8.85180 Mentionland Limited GBR Zurich Assurance Ltd 100.00000 Meritclass Investments Limited GBR Zurich Assurance Ltd 100.00000 MI Administrators, LLC DE FIG Leasing Co., Inc. 100.00000 MIAMI INDUSTRIAL 1, LLC DE Zurich American Insurance Company 100.00000 Miami Industrial 2, LLC DE Farmers New World Life Insurance Company 100.00000 Miami Office 2, LLC DE Zurich American Insurance Company 100.00000 MIAMI OFFICE 3, LLC DE Zurich American Insurance Company 100.00000 Miami Retail 1, LLC DE Zurich American Insurance Company 100.00000 Minas Brasil Promotora de Servicos S/A BRA Zurich Minas Brasil Seguros S.A, 100.00000 MSHQ, LLC DE JFS/ZSF 1998, L.P. 100.00000 MSP APT 1, LLC DE Zurich American Insurance Company 100.00000 Nashville Office 1, LLC DE Zurich American Insurance Company 100.00000 Navigators and General Insurance Company Limited GBR Zurich Insurance plc 100.00000 Nearheath Limited GBR Zurich Assurance Ltd 100.00000 Omnis Investments Limited GBR Openwork Holdings Limited 90.00000 Openwork Access Limited GBR Openwork Holdings Limited 100.00000 Openwork Holdings Limited GBR Allied Zurich Holdings Limited 99.99265 Openwork Independent Solutions Limited GBR Openwork Holdings Limited 100.00000 Openwork Limited GBR Openwork Holdings Limited 100.00000 Openwork Market Solutions Limited GBR Openwork Holdings Limited 100.00000 Openwork Services Limited GBR Openwork Holdings Limited 100.00000 Orange Stone Company IRL Zurich Finance Company AG 100.00000 Orion Rechtsschutz-Versicherung AG CHE Zurich Versicherungs-Gesellschaft AG 78.00000 Parcelgate Limited GBR Zurich Assurance Ltd 100.00000 Perils AG CHE Zurich Versicherungs-Gesellschaft AG 11.11111 Philly Office 1, LLC DE Zurich American Insurance Company 100.00000 POR Apt 1, LLC DE Zurich American Insurance Company 100.00000 POR Apt 2, LLC DE Zurich American Insurance Company 100.00000 POR Office 1, LLC DE Farmers New World Life Insurance Company 100.00000 Prime Corporate Psychology Pty Ltd AUS DTC Bidco Pty Ltd 100.00000

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Protektor Lebensversicherungs-AG Zurich Deutscher Herold Lebensversicherung DEU Aktiengesellschaf 5.15838 PT Zurich Insurance Indonesia IDN Zurich International (Bermuda) Ltd. 1.56878 PT Zurich Insurance Indonesia IDN Zurich Versicherungs-Gesellschaft AG 97.09134 PT Zurich Topas Life IDN Zurich Versicherungs-Gesellschaft AG 80.00000 R3 FL Holdings, LLC FL Fidelity and Deposit Company of Maryland 100.00000

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Company Domicile Ownership % Raleigh/Durham Offices, L.P. DE Zurich Structured Finance, Inc. 99.00000 RE Curve Holding B.V. Zurich Deutscher Herold Lebensversicherung DEU Aktiengesellschaf 100.00000 Real Garant Espana S.L. ESP Real Garant GmbH Garantiesysteme 100.00000 Real Garant GmbH Garantiesysteme DEU Real Garant Versicherung Aktiengesellschaft 100.00000 Real Garant Versicherung Aktiengesellschaft Zurich Beteiligungs-Aktiengesellschaft DEU (Deutschland) 100.00000 Research Triangle MGP Manager, Inc. DE Zurich Structured Finance, Inc. 100.00000 Research Triangle Office MGP, LLC DE Zurich Structured Finance, Inc. 99.00000 Research Triangle Office MGP, LLC DE Research Triangle MGP Manager, Inc. 1.00000 REX Holding S.a.r.l. LUX REX-ZDHL S.C.S. SICAV-SIF 100.00000 REX-Germany-ZDHL S.C.S LUX REX-ZDHL S.C.S. SICAV-SIF 95.240 Rex-Spain-ZDHL S.L. Zurich Deutscher Herold Lebensversicherung ESP Aktiengesellschaf 100.00000 REX-The East S.à.r.l LUX REX-ZDHL S.C.S. SICAV-SIF 94.80000 REX-ZDHL GP S.a.r.l. Zurich Deutscher Herold Lebensversicherung LUX Aktiengesellschaf 100.00000 REX-ZDHL S.C.S. SICAV-SIF Zurich Deutscher Herold Lebensversicherung LUX Aktiengesellschaf 100.00000 Rock Inne Vastgoed B.V. NLD REX Holding S.à.r.l. 100.00000 Rokin 21 B.V. NLD Roxana Vastgoed B.V. 100.00000 Rokin 49 B.V. NLD Rock Inne Vastgoed B.V. 100.00000 Roxana Vastgoed B.V. NLD REX Holding S.à.r.l. 100.00000 Rural Community Insurance Company MN Zurich American Insurance Company 100.00000 Sacramento Office MGP, LLC DE Zurich Structured Finance, Inc. 100.00000 SAN DIEGO INDUSTRIAL 1, LLC DE Zurich American Insurance Company 100.00000 San Diego Retail 1, LLC DE Zurich American Insurance Company 100.00000 Santander Rio Seguros S.A. ARG Inversiones ZS America SpA 4.00000 Santander Rio Seguros S.A. ARG Zurich Santander Insurance America, S.L. 96.00000 Santander Seguros Sociedad Anónima URY Zurich Santander Insurance America, S.L. 100.00000 Saudi National Insurance Company BHR Zurich Insurance Company Ltd (Bahrain Branch) 5.00000 Sceptre Trust Limited BHS Eagle Star Holdings Limited 0.00002 Sceptre Trust Limited BHS Eagle Star Insurance Company Limited 99.99998 SEA APARTMENT 1, LLC DE Zurich American Insurance Company 100.00000 SEA APARTMENT 2, LLC DE Zurich American Insurance Company 100.00000 Seabrook Warehouse LP DE Zurich Structured Finance, Inc. 99.00000 Seabrook Warehouse MGP Manager, Inc. DE Zurich Structured Finance, Inc. 100.00000 Seabrook Warehouse MGP, LLC DE Zurich Structured Finance, Inc. 99.00000 Seabrook Warehouse MGP, LLC DE Seabrook Warehouse MGP Manager, Inc. 1.00000 Serviaide Assistencia e Servicos, Lda. AIDE Asistencia Seguros y Reaseguros, S.A. - PRT Sociedad Uniper 95.00001 Serviaide Assistencia e Servicos, Lda. PRT Serviaide, S.A. - Sociedad Unipersonal 4.99999 Serviaide, S.A. - Sociedad Unipersonal AIDE Asistencia Seguros y Reaseguros, S.A. - ESP Sociedad Uniper 100.00000 Servizurich S.A. - Sociedad Unipersonal ESP Zurich Insurance plc, Sucursal en Espana 100.00000 SF Apt 1, LLC DE Zurich American Insurance Company 100.00000 SF Industrial 1, LLC DE Farmers New World Life Insurance Company 100.00000 SF Office 1, LLC DE Zurich American Insurance Company 100.00000 SF Office 4, LLC DE Zurich American Insurance Company 100.00000 Shire Park Limited GBR Zurich Assurance Ltd 12.41935 SOCIETE AVENUE LOUIS CASAI 86 SA CHE Zürich Lebensversicherungs-Gesellschaft AG 100.00000 Speigelhof Vastgoed B.V. DEU RE Curve Holding B.V. 100.00000 Springboard Health and Performance Pty Ltd AUS DTC Bidco Pty Ltd 100.00000 Steadfast Insurance Company DE Zurich American Insurance Company 100.00000 Steadfast Santa Clarita Holdings LLC DE Steadfast Insurance Company 100.00000 Sterling ISA Managers (Nominees) Limited GBR Sterling ISA Managers Limited 100.00000

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Sterling ISA Managers Limited GBR Zurich Financial Services (UKISA) Limited 100.00000 Stratos Limited NZL DTC NZ Bidco Limited 100.00000 Sunley Homes Limited GBR Zurich Insurance plc 100.00000 Swiss Insurance Management (Hong Kong) Limited HKG Zurich Insurance Holdings (Hong Kong) Limited 99.50495 Swiss Insurance Management (Hong Kong) Limited HKG Zurich Services (Hong Kong) Limited 0.49505 TCS Loss Adjusters Limited GBR Endsleigh Insurance Services Limited 100.00000

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Company Domicile Ownership % TDG Tele Dienste GmbH Zurich Beteiligungs-Aktiengesellschaft DEU (Deutschland) 100.00000 Tennyson Insurance Limited GBR Zurich Holdings (UK) Limited 100.00000 The Liverpool Reversionary Company Limited GBR Eagle Star Insurance Company Limited 100.00000 The Trust Company of Scotland Limited GBR Zurich Insurance plc 100.00000 The Zurich Services Corporation IL Zurich Holding Company of America, Inc. 100.00000 Timosa Limited IRL Zurich Life Assurance plc 100.00000 TopReport Schadenbesichtigungs GmbH AUT Zurich Versicherungs-Aktiengesellschaft 14.28571 Travel Assist Pty Limited AUS ASTIS Holdings Limited 100.00000 Travel Insurance Partners Pty Ltd AUS Travel Assist Pty Limited 100.00000 Travelex Insurance Services Limited DE Cover-More Holdings USA Inc. 100.00000 Truck Underwriters Association CA Farmers Group, Inc. 100.00000 Turegum Immobilien AG CHE Zurich Versicherungs-Gesellschaft AG 100.00000 Universal Underwriters Insurance Company IL Zurich American Insurance Company 100.00000 Universal Underwriters of Texas Insurance Company IL Universal Underwriters Insurance Company 100.00000 Universal Underwriters Service Corporation MO Zurich Holding Company of America, Inc. 100.00000 Vehicle Dealer Solutions, Inc. FL The Zurich Services Corporation 100.00000 Winchester Land, LLC FL R3 FL Holdings, LLC 100.00000 Winn-Dixie MGP Manager, Inc. DE Zurich Structured Finance, Inc. 100.00000 Women on Wheels Limited GBR Endsleigh Insurance Services Limited 100.00000 Woodstock Insurance Brokers Limited GBR Endsleigh Insurance Services Limited 100.00000 World Travel Protection Canada Inc. CAN Zurich Canadian Holdings Limited 100.00000 Wren Investments Limited GBR Zurich Whiteley Trust Limited 100.00000 Wrightway Underwriting Limited IRL Ballykilliane Holdings Limited 100.00000 Z flex Gesellschaft fur Personaldienstleistungen mbH Zurich Beteiligungs-Aktiengesellschaft DEU (Deutschland) 100.00000 ZCM (U.S.) Limited DE Zurich Finance Company Ltd 100.00000 ZCM Asset Holding Company (Bermuda) Limited BMU Zurich Finance Company Ltd 100.00000 ZCM Matched Funding Corp. CYM Zurich Capital Markets Inc. 100.00000 ZCMC II Holdings Limited IRL ZCM Asset Holding Company (Bermuda) Limited 0.20000 ZCMC II Holdings Limited IRL Zurich Financial Services EUB Holdings Limited 99.80000 ZFUS Services, LLC DE Zurich Holding Company of America, Inc. 100.00000 ZGEE3 Limited GBR Zurich Insurance Company (U.K.) Limited 100.00000 ZNA Services, LLC DE ZFUS Services, LLC 100.00000 ZPC Capital Limited GBR Zurich Holdings (UK) Limited 100.00000 ZSF / Collierville, LLC DE Collierville Center, LP 100.00000 ZSF / Office KY, LLC DE Euclid Office LP 100.00000 ZSF / Office NV, LLC DE Euclid Office LP 100.00000 ZSF / Office NY, LLC DE Euclid Office LP 100.00000 ZSF 00-1, Inc. IL CTH Affordable Housing Corporation 100.00000 ZSF 99-4, Inc. IL CTH Affordable Housing Corporation 100.00000 ZSF Apollo Corporation IL CTH Affordable Housing Corporation 100.00000 ZSF KY Annex, LLC DE Euclid KY Annex, LP 100.00000 ZSF Landmark Corporation IL CTH Affordable Housing Corporation 100.00000 ZSF Newport I Corporation IL CTH Affordable Housing Corporation 100.00000 ZSF/Bloomington, LLC DE Bloomington Office LP 100.00000 ZSF/C1 MGP Manager, Inc DE Zurich Structured Finance, Inc. 100.00000 ZSF/C1 MGP, LLC DE Zurich Structured Finance, Inc. 99.00000 ZSF/C1 MGP, LLC DE ZSF/C1 MGP Manager, Inc 1.00000 ZSF/C2 MGP Manager, Inc DE Zurich Structured Finance, Inc. 100.00000 ZSF/C2 MGP, LLC DE Zurich Structured Finance, Inc. 99.00000 ZSF/C2 MGP, LLC DE ZSF/CF2 MGP Manager, Inc. 1.00000 ZSF/Dallas Tower, LLC DE Dallas Tower LP 100.00000 ZSF/Kansas, LLC DE Kansas City Office LP 100.00000 ZSF/Land Parcels LLC DE Zurich Structured Finance, Inc. 100.00000 ZSF/Research Gateway, LLC DE Raleigh/Durham Offices, L.P. 100.00000

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document ZSF/Seabrook, LLC DE Seabrook Warehouse LP 100.00000 ZSF/WD Fitzgerald, LLC DE Euclid Warehouses LP 100.00000 ZSF/WD Hammond, LLC DE Euclid Warehouses LP 100.00000 ZSF/WD Jacksonville, LLC DE Euclid Warehouses LP 100.00000 ZSF/WD Montgomery 31, LLC DE Euclid Warehouses LP 100.00000 ZSF/WD Opa Locka, LLC DE Euclid Warehouses LP 100.00000 ZSF/WD Orlando, LLC DE Euclid Warehouses LP 100.00000

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Company Domicile Ownership % ZSFH LLC DE Zurich Holding Company of America, Inc. 100.00000 ZSG Kfz-ZulassungsservicegesmbH AUT Zurich Versicherungs-Aktiengesellschaft 33.33333 ZSL Financing Limited GBR Zurich Holdings (UK) Limited 1.00000 ZSL Financing Limited GBR Zurich Specialties London Limited 99.00000 Zurich - Companhia de Seguros Vida S.A. PRT Zurich Finanz-Gesellschaft AG 0.00002 Zurich - Companhia de Seguros Vida S.A. PRT Zurich Investments Life S.p.A. 0.00002 Zurich - Companhia de Seguros Vida S.A. PRT Zurich Lebensversicherungs-Gesellschaft AG 99.99990 Zurich - Companhia de Seguros Vida S.A. PRT Zurich Versicherungs-Gesellschaft AG 0.00002 Zurich - Companhia de Seguros Vida S.A. Zurich Vida, Companía de Seguros y Reaseguros, PRT S.A. - Socied 0.00002 Zurich (Scotland) Limited Partnership GBR Zurich General Partner (Scotland) Ltd 100.00000 Zurich Administradora General de Fondos S.A. CHL Chilena Consolidada Seguros de Vida S.A. 99.97013 Zurich Administradora General de Fondos S.A. CHL Inversiones Suizo Chilena S.A. 0.02987 Zurich Advice Network Limited GBR Allied Dunbar Assurance plc 100.00000 Zurich AFIN Mexico, S.A. DE C.V. MEX Zurich Compania de Sefuros, S.A. 0.00200 Zurich AFIN Mexico, S.A. DE C.V. MEX Zurich Versicherungs-Gesellschaft AG 99.99800 Zurich Agency Services Inc. MA Zurich Holding Company of America, Inc. 100.00000 Zurich Alternative Asset Management, LLC DE Zurich Holding Company of America, Inc. 100.00000 Zurich America Latina Serviços Brasil Ltda. BRA Zurich Lebensversicherungs-Gesellschaft AG 0.01000 Zurich America Latina Serviços Brasil Ltda. BRA Zurich Versicherungs-Gesellschaft AG 99.99000 Zurich American Corporation DE Zurich Holding Company of America, Inc. 100.00000 Zurich American Insurance Company NY Zurich Holding Company of America, Inc. 100.00000 Zurich American Insurance Company of Illinois IL American Zurich Insurance Company 100.00000 Zurich American Life Insurance Company IL Zurich American Corporation 100.00000 Zurich American Life Insurance Company of New York NY Zurich American Life Insurance Company. 100.00000 Zurich Argentina Cia. de Seguros S.A. ARG Inversiones Suizo-Argentina S.A. 55.46140 Zurich Argentina Cia. de Seguros S.A. ARG Zurich Versicherungs-Gesellschaft AG 44.53611 Zurich Argentina Companía de Seguros de Retiro S.A. ARG Zurich Argentina Cia. de Seguros S.A. 46.64193 Zurich Argentina Companía de Seguros de Retiro S.A. ARG Zurich Versicherungs-Gesellschaft AG 53.35807 Zurich Asset Management Gerente de Fondos Comunes de Inversi ARG Inversiones Suizo-Argentina S.A. 89.99990 Zurich Asset Management Gerente de Fondos Comunes de Inversi ARG Isis S.A. 10.00010 Zurich Assurance (2004) plc GBR Zurich Assurance Ltd 100.00000 Zurich Assurance Ltd GBR Eagle Star Holdings Limited 100.00000 Zurich Australia Limited AUS Zurich Financial Services Australia Limited 100.00000 Zurich Australian Insurance Limited AUS Zurich Financial Services Australia Limited 100.00000 Zurich Australian Insurance Properties Pty Limited AUS Zurich Australia Limited 40.00000 Zurich Australian Insurance Properties Pty Limited AUS Zurich Australian Insurance Limited 60.00000 Zurich Australian Property Holdings Pty Ltd AUS Zürich Versicherungs-Gesellschaft AG 100.00000 Zurich Australian Superannuation Pty Limited AUS Zurich Financial Services Australia Limited 100.00000 Zurich Bank International Limited GBR Dunbar Assets Ireland 100.00000 Zurich Benefit Finance LLC DE Zurich Holding Company of America, Inc. 100.00000 Zurich Beteiligungs-Aktiengesellschaft (Deutschland) Zurich IT Service AG Niederlassung fur DEU Deutschland 82.61672 Zurich Beteiligungs-Aktiengesellschaft (Deutschland) Zurich Leben Service AG Niederlassung fur DEU Deutschland 17.38328 Zurich Brasil Capitalizacao S.A BRA Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Building Control Services Limited GBR Zurich Holdings (UK) Limited 100.00000 Zurich Canadian Holdings Limited CAN Zurich Insurance Company Ltd, Canadian Branch 68.81942 Zurich Canadian Holdings Limited CAN Zurich Versicherungs-Gesellschaft AG 31.18058 Zurich Capital Markets Inc. DE ZCM (U.S.) Limited 100.00000 Zurich Capital Markets Securities Inc. DE Zurich Capital Markets Inc. 100.00000 Zurich Colombia Seguros S.A. COL Zurich Versicherungs-Gesellschaft AG 94.90000 Zurich Colombia Seguros S.A. COL Zurich Lebensversicherungs-Gesellschaft AG 5.10000 Zurich Community Trust (UK) Limited GBR Zurich Financial Services (UKISA) Limited 50.00000

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Zurich Community Trust (UK) Limited Zurich Financial Services (UKISA) Nominees GBR Limited 50.00000 Zurich Compania de Reaseguros Argentina S.A. ARG Zurich Versicherungs-Gesellschaft AG 5.00000 Zurich Compania de Reaseguros Argentina S.A. ARG Inversiones Suizo-Argentina S.A. 95.00000 Zurich Companía de Seguros, S.A. MEX Zurich Versicherungs-Gesellschaft AG 99.88280 Zurich Computer Services Limited GBR Allied Dunbar Assurance plc 100.00000 Zurich Consultoria de Riesgos, C.A. VEN Zurich Seguros, S.A. 99.99000 Zurich Corredora de Bolsa S.A. CHL Inversiones Suizo Chilena S.A. 99.00030

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Company Domicile Ownership % Zurich Corredora de Bolsa S.A. CHL Zurich Investments Chile S.A. 0.99970 Zurich CZI Management Holding Ltd. DE Zurich Global Investment Management Inc. 100.00000 Zurich Deutscher Herold Lebensversicherung Aktiengesellschaf DEU Deutscher Herold Aktiengesellschaft 67.54030 Zurich Deutscher Herold Lebensversicherung Zurich Beteiligungs-Aktiengesellschaft Aktiengesellschaf DEU (Deutschland) 32.45970 Zurich E&S Insurance Brokerage, Inc. CA Zurich American Insurance Company 100.00000 Zurich Employment Services Limited GBR Zurich Financial Services (UKISA) Limited 100.00000 Zurich Eurolife S.A. LUX Zurich Lebensversicherungs-Gesellschaft AG 90.00000 Zurich Eurolife S.A. LUX Zurich Versicherungs-Gesellschaft AG 10.00000 Zurich F&I Reinsurance T&C Limited TCA Zurich Agency Services Inc. 0.00050 Zurich F&I Reinsurance T&C Limited TCA Universal Underwriters Service Corporation 99.99950 Zurich Fianzas Mexico, S.A.DE C.V. MEX Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Finance (Australia) Limited AUS Zürich Versicherungs-Gesellschaft AG 100.00000 Zurich Finance (Bermuda) Ltd. BMU Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Finance (Luxembourg) S.A. LUX Zurich Lebensversicherungs-Gesellschaft AG 0.08065 Zurich Finance (Luxembourg) S.A. LUX Zurich Versicherungs-Gesellschaft AG 99.91935 Zurich Finance (UK) plc GBR Zurich Financial Services (UKISA) Limited 99.99800 Zurich Finance (UK) plc Zurich Financial Services (UKISA) Nominees GBR Limited 0.00200 Zurich Finance Company Ltd CHE Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Financial Management Limited GBR Allied Dunbar Assurance plc 100.00000 Zurich Financial Services (Channel Islands) Limited JEY Zurich Financial Services (UKISA) Limited 99.90901 Zurich Financial Services (Channel Islands) Limited Zurich Financial Services (UKISA) Nominees JEY Limited 0.09099 Zurich Financial Services (Isle of Man) Group Services Limit GBR Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Financial Services (Isle of Man) Holdings Limited GBR Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Financial Services (Isle of Man) Insurance Manager Lt GBR Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Financial Services (UKISA) Group Services Limited GBR Zurich Financial Services (UKISA) Limited 100.00000 Zurich Financial Services (UKISA) Limited GBR Allied Zurich Holdings Limited 90.31559 Zurich Financial Services (UKISA) Limited GBR Zurich Insurance plc 9.68441 Zurich Financial Services (UKISA) Nominees Limited GBR Zurich Financial Services (UKISA) Limited 100.00000 Zurich Financial Services Australia Limited AUS Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Financial Services EUB Holdings Limited IRL Zurich Ins Group 0.08333 Zurich Financial Services EUB Holdings Limited IRL Zurich Insurance Group Ltd. 99.91667 Zurich Financial Services UK Pension Trustee Limited GBR Zurich Financial Services (UKISA) Limited 99.00000 Zurich Finanz-Gesellschaft AG CHE Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich General Insurance Company (China) Limited CHN Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich General Insurance Malaysia Berhad MYS Zürich Versicherungs-Gesellschaft AG 100.00000 Zurich General Partner (Scotland) Ltd GBR Allied Zurich Holdings Limited 100.00000 Zurich GL Servicios Mexico, S.A. de C.V. MEX Zurich Vida, Compañía de Seguros, S.A. 95.00000 Zurich GL Servicios Mexico, S.A. de C.V. MEX Zurich Companía de Seguros, S.A. 5.00000 Zurich Global Corporate UK Limited GBR Zurich Holdings (UK) Limited 100.00000 Zurich Global Investment Management Inc. DE Zurich Holding Company of America, Inc. 100.00000 Zurich Global, Ltd. BMU Zurich Holding Company of America, Inc. 100.00000 Zurich Group Pension Services (UK) Ltd GBR Zurich Assurance Ltd 100.00000 Zurich GSG Limited GBR Zurich GSH Limited 100.00000 Zurich GSH Limited GBR Zurich Holdings (UK) Limited 100.00000 Zurich Holding Company of America, Inc. DE Zurich Finance Company AG 0.8200 Zurich Holding Company of America, Inc. DE Zurich Versicherungs-Gesellschaft AG 99.1800 Zurich Holding Ireland Limited IRL Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Holdings (UK) Limited GBR Zurich Versicherungs-Gesellschaft AG 100.00000

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Zurich Immobilien Liegenschaftsverwaltungs-GesmbH AUT Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich IMRE AG CHE Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Independent Wealth Management Limited GBR Allied Dunbar Assurance plc 100.00000 Zurich Insurance Company (U.K.) Limited GBR Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Insurance Company Escritorio de Representacao no Bras BRA Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Insurance Company Ltd., Beijing Representative Office CHN Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Insurance Company Ltd., Representative Office Buenos Aires ARG Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Insurance Group Ltd. CHE Board of Directors Zurich Insurance Holdings (Hong Kong) Limited HKG Zurich Versicherungs-Gesellschaft AG 100.00000

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Company Domicile Ownership % Zurich Insurance Malaysia Berhad MYS Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Insurance plc Zurich Beteiligungs-Aktiengesellschaft IRL (Deutschland) 25.07428 Zurich Insurance plc IRL Zurich Holding Ireland Limited 70.40509 Zurich Insurance plc Zurich Insurance Company Ltd - Rappresentanza IRL Generale per l 4.52063 Zurich Insurance plc, Representative Office Buenos Aires ARG Zurich Insurance plc 100.00000 Zurich Intermediary Group Limited GBR Zurich Financial Services (UKISA) Limited 99.99995 Zurich Intermediary Group Limited Zurich Financial Services (UKISA) Nominees GBR Limited 0.00005 Zurich Internacional de Venezuela, C.A. de Corretaje de Reas VEN Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich International (UK) Limited GBR Zurich Holdings (UK) Limited 100.00000 Zurich International Life Limited GBR Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich International Services (Luxembourg) S.A. LUX Zurich Eurolife S.A. 0.04000 Zurich International Services (Luxembourg) S.A. LUX Zurich Versicherungs-Gesellschaft AG 99.96000 Zurich International Solutions Limited GBR Zurich Assurance Ltd 100.00000 Zurich Invest AG CHE Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Invest ICAV IRL Zürich Versicherungs-Gesellschaft AG 50.00000 Zurich Invest ICAV IRL Zurich Invest AG 50.00000 Zurich Investment Management AG CHE Farmers Group, Inc. 80.00000 Zurich Investment Management AG CHE Zurich Versicherungs-Gesellschaft AG 20.00000 Zurich Investment Management Limited AUS Zurich Australia Limited 100.00000 Zurich Investment Services (UK) Limited GBR Allied Zurich Holdings Limited 100.00000 Zurich Investment Services Limited BMU Zurich Finance Company Ltd 100.00000 Zurich Investments Life S.p.A. Zurich Insurance Company Ltd - Rappresentanza ITA Generale per l 100.00000 Zurich JVCompany Servicios Mexico, S.A. DE C.V. MEX Zurich Vida, Compania de Seguros, S.A. 0.00200 Zurich JVCompany Servicios Mexico, S.A. DE C.V. MEX Zurich Santander Seguros Mexico, S.A. 99.99800 Zurich Kunden Center GmbH Zurich Beteiligungs-Aktiengesellschaft DEU (Deutschland) 100.00000 Zurich Latin America Corporation FL The Zurich Services Corporation 100.00000 Zurich Latin America Holding S.L. - Sociedad Unipersonal ESP Zurich Lebensversicherungs-Gesellschaft AG 100.00000 Zurich Latin American Services S.A. ARG Inversiones Suizo-Argentina S.A. 6.32000 Zurich Latin American Services S.A. ARG Zurich Versicherungs-Gesellschaft AG 93.68000 Zurich Lebensversicherungs-Gesellschaft AG CHE Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Leisure Services Limited GBR Allied Dunbar Assurance plc 100.00000 Zurich Life Assurance plc IRL Zurich Holding Ireland Limited 100.00000 Zurich Life Insurance (Singapore) Pte Ltd SGP Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Life Insurance Company Ltd., Representative office Buenos Aires ARG Zurich Lebensversicherungs-Gesellschaft AG 100.00000 Zurich Management (Bermuda) Ltd BMU Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Management Services Limited GBR Zurich Holdings (UK) Limited 100.00000 Zurich Minas Brasil Seguros S.A, BRA Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Pension Trustees Ireland Limited IRL Zurich Insurance plc 50.00000 Zurich Pension Trustees Ireland Limited IRL Zurich Trustee Services Limited 50.00000 Zurich Pension Trustees Limited GBR Zurich Assurance Ltd 100.00000 Zurich Pensions Management Limited GBR Allied Dunbar Assurance plc 100.00000 Zurich Pensionskassen-Beratung AG CHE Zurich Lebensversicherungs-Gesellschaft AG 100.00000 Zurich Professional Limited GBR Zurich Holdings (UK) Limited 100.00000 Zurich Project Finance (UK) Limited GBR Zürich Versicherungs-Gesellschaft AG 100.00000 Zurich Properties Pty Limited AUS Zurich Australia Limited 40.00056 Zurich Properties Pty Limited AUS Zurich Australian Insurance Limited 59.99944 Zurich Property Services Malaysia Sdn Bhd MYS Zurich Versicherungs-Gesellschaft AG 100.00000

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Zurich Realty, Inc. MD The Zurich Services Corporation 100.00000 Zurich Rechtsschutz-Schadenservice GmbH Zurich Beteiligungs-Aktiengesellschaft DEU (Deutschland) 100.00000 Zurich Reliable Insurance Limited RUS Zurich Versicherungs-Gesellschaft AG 99.90000 Zurich Reliable Insurance Limited RUS Zurich Versicherungs-Aktiengesellschaft 0.10000 Zurich Resseguradora Brasil S.A. BRA Zurich Versicherungs-Gesellschaft AG 99.99999. Zurich Resseguradora Brasil S.A. BRA Zurich Lebensversicherungs-Gesellschaft AG 0.00001 Zurich Risk Consulting RU RUS Zurich Reliable Insurance 100.00000 Zurich Risk Management Services (India) Private Limited IND Zurich International (Bermuda) Ltd. 1.00000 Zurich Risk Management Services (India) Private Limited IND Zurich Versicherungs-Gesellschaft AG 99.00000 Zurich Risk Services Asia Pacific Sdn Bhd MYS Zurich Management Services Limited 100.00000 Zurich Roadside Assistance Malaysia Sdn Bhd MYS Zurich Versicherungs-Gesellschaft AG 100.00000

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Company Domicile Ownership % Zurich Ruckversicherungs-Gesellschaft AG CHE Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Sacramento, Inc. CA JFS/ZSF 1998, L.P. 100.00000 Zurich Santander Brasil Seguros e Previdência S.A. Zurich Latin America Holding S.L. - Sociedad BRA Unipersonal 0.22007 Zurich Santander Brasil Seguros e Previdência S.A. BRA Zurich Santander Holding (Spain), S.L. 99.56848 Zurich Santander Brasil Seguros S.A. BRA Zurich Santander Brasil Seguros e Previdência S.A. 100.00000 Zurich Santander Holding (Spain), S.L. ESP Zurich Santander Insurance America, S.L. 100.00000 Zurich Santander Holding Dos (Spain), S.L. ESP Zurich Santander Insurance America, S.L. 100.00000 Zurich Santander Insurance America, S.L. Zurich Latin America Holding S.L. - Sociedad ESP Unipersonal 51.00000 Zurich Santander Seguros Argentina S.A. ARG Zurich Santander Insurance America, S.L. 96.00000 Zurich Santander Seguros Argentina S.A. ARG Inversiones ZS America SpA 4.00000 Zurich Santander Seguros de Vida Chile S.A. CHL Inversiones ZS America Dos Limitada 99.78173 Zurich Santander Seguros de Vida Chile S.A. CHL Inversiones ZS America SpA 0.21827 Zurich Santander Seguros Generales Chile S.A. CHL Inversiones ZS America Dos Limitada 99.50540 Zurich Santander Seguros Generales Chile S.A. CHL Inversiones ZS America SpA 0.49460 Zurich Santander Seguros Mexico, S.A. MEX Inversiones ZS America SpA 0.00053 Zurich Santander Seguros Mexico, S.A. MEX Zurich Santander Insurance America, S.L. 99.99947 Zurich Seguros, S.A. VEN Cursud N.V. 69.20833 Zurich Service GmbH Zurich Beteiligungs-Aktiengesellschaft DEU (Deutschland) 100.00000 Zurich Service GmbH DEU Zurich Versicherungs-Aktiengesellschaft 100.00000 Zurich Services (Hong Kong) Limited HKG Swiss Insurance Management (Hong Kong) Limited 0.00286 Zurich Services (Hong Kong) Limited HKG Zurich Insurance Holdings (Hong Kong) Limited 99.99714 Zurich Services A.I.E. AIDE Asistencia Seguros y Reaseguros, S.A. - ESP Sociedad Uniper 0.00008 Zurich Services A.I.E. ESP Bansabadell Pensiones, E.G.F.P, S.A. 0.00008 Zurich Services A.I.E. Bansabadell Seguros Generales, S.A. de Seguros y ESP Reaseguros 0.00008 Zurich Services A.I.E. ESP Bansabadell Vida S.A. de Seguros y Reaseguros 0.00008 Zurich Services A.I.E. ESP Zurich Insurance plc, Sucursal en Espana 97.18393 Zurich Services A.I.E. Zurich Vida, Companía de Seguros y Reaseguros, ESP S.A. - Socied 2.81550 Zurich Services Company (Pty) Ltd AUS Zürich Versicherungs-Gesellschaft AG 100.00000 Zurich Services US. LLC DE Farmers Group, Inc. 50.00000 Zurich Services US. LLC DE Zurich Holding Company of America, Inc. 50.00000 Zurich Servicios de Mexico, S.A. de. C.V. MEX Zurich Vida, Compania de Seguros, S.A. 90.00000 Zurich Servicios de Mexico, S.A. de. C.V. MEX Zurich, Compania de Seguros, S.A. 10.00000 Zurich Shared Services Ireland Limited IRL Zurich Holding Ireland Limited 100.00000 Zurich Shared Services S.A. CHL Inversiones Suizo Chilena S.A. 99.98667 Zurich Shared Services S.A. CHL Zurich Investments Chile S.A. 0.01333 Zurich Sigorta A.S. TUR Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich South America Invest AB SWE Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Specialties London Limited GBR Zurich Holdings (UK) Limited 100.00000 Zurich Structured Finance, Inc. DE Zurich Finance Company Ltd 100.00000 Zurich Takaful Malaysia Berhad (ZTMB) MYS Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Technical and Consulting Services (Beijing) Co. Ltd. CHN Zurich Insurance Holdings (Hong Kong) Limited 100.00000 Zurich Technology Malaysia Sdn Bhd MYS Zurich Technology Services Malaysia Sdn Bhd 100.00000 Zurich Technology Services Malaysia Sdn Bhd MYS Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Training and Development Services Limited GBR Allied Dunbar Assurance plc 100.00000 Zurich Transitional Services Limited GBR Zurich Holdings (UK) Limited 100.00000 Zurich Travel Solutions Pty Limited AUS Zürich Versicherungs-Gesellschaft AG 100.00000 Zurich Treasury Services Limited IRL Zurich Financial Services EUB Holdings Limited 100.00000 Zurich Trustee Company (UK) Limited GBR Allied Dunbar Assurance plc 100.00000 Zurich Trustee Services Limited IRL Zurich Life Assurance plc 100.00000

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Zurich UK General Employee Services Limited GBR Zurich UK General Services Limited 100.00000 Zurich UK General Services Limited GBR Zurich Holdings (UK) Limited 100.00000 Zurich Versicherungs-Aktiengesellschaft AUT Zurich Versicherungs-Gesellschaft AG 99.98125 Zurich Versicherungs-Gesellschaft AG CHE Zurich Insurance Group Ltd. 100.00000 Zurich Vida e Previdencia S.A. BRA Zurich Minas Brasil Seguros S.A, 100.00000 Zurich Vida, Companía de Seguros y Reaseguros, S.A. - Socied ESP Zurich Lebensversicherungs-Gesellschaft AG 100.00000

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Company Domicile Ownership % Zurich Vida, Companía de Seguros, S.A. MEX Zurich Versicherungs-Gesellschaft AG 100.00000 Zurich Warranty Solutions, Inc. IL American Zurich Insurance Company 100.00000 Zurich Whiteley Investment Trust Limited GBR Zurich Insurance plc 100.00000 Zurich Whiteley Trust Limited GBR Zurich Whiteley Investment Trust Limited 100.00000

Note 1: Farmers Services, LLC provides services to Farmers Group, Inc., pursuant to a service agreement among its parent, ZFUS Services, LLC, and Farmers Group, Inc., Truck Underwriters Association and Fire Underwriters Association.

Note 2: Zurich Insurance Plc operates branches in the following countries: Italy (AA-1364106), Portugal (AA-1820001), Spain (AA-1840150), and United Kingdom (AA-1780059).

Note 3: Zurich Versicherungs-Aktiengesellschaft operates a branch in Germany (AA-1340017).

Note 4: Zurich Versicherungs-Gesellschaft AG also known as Zurich Insurance Company, Ltd operates branches in the following countries: Bermuda (AA-3190825), Canada (AA-1560999), Hong Kong (AA-5324112), Ireland (AA-1780042), Japan (AA-1584115), and Singapore (AA-5760036). It also operates a management entity Alpina International (AA-1460010) in Switzerland.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Company Domicile Ownership % 145 Great Road LLC DE Mid Century Insurance Company 100.00000 17885 Von Karman, LLC CA Mid-Century Insurance Company 100.00000 201 Railroad Ave, LLC DE Farmers Insurance Exchange 100.00000 21st Century Advantage Insurance Company MN 21st Century North America Insurance Company 100.00000 21st Century Assurance Company DE Farmers Insurance Exchange 80.00000 21st Century Assurance Company DE Fire Insurance Exchange 10.00000 21st Century Assurance Company DE Truck Insurance Exchange 10.00000 21st Century Auto Insurance Company of New Jersey NJ 21st Century Centennial Insurance Company 100.00000 21st Century Casualty Company CA 21st Century Insurance Group 100.00000 21st Century Centennial Insurance Company PA Farmers Insurance Exchange 80.00000 21st Century Centennial Insurance Company PA Fire Insurance Exchange 10.00000 21st Century Centennial Insurance Company PA Truck Insurance Exchange 10.00000 21st Century Indemnity Insurance Company PA 21st Century Premier Insurance Company 100.00000 21st Century Insurance and Financial Services, Inc. DE Farmers Insurance Exchange 80.00000 21st Century Insurance and Financial Services, Inc. DE Fire Insurance Exchange 10.00000 21st Century Insurance and Financial Services, Inc. DE Truck Insurance Exchange 10.00000 21st Century Insurance Company CA 21st Century Insurance Group 100.00000 21st Century Insurance Company of the Southwest TX 21st Century Insurance Group 100.00000 21st Century Insurance Group DE Farmers Insurance Exchange 80.00000 21st Century Insurance Group DE Fire Insurance Exchange 10.00000 21st Century Insurance Group DE Truck Insurance Exchange 10.00000 21st Century National Insurance Company NY 21st Century Security Insurance Company 100.00000 21st Century North America Insurance Company NY Farmers Insurance Exchange 80.00000 21st Century North America Insurance Company NY Fire Insurance Exchange 10.00000 21st Century North America Insurance Company NY Truck Insurance Exchange 10.00000 21st Century Pacific Insurance Company CO Farmers Insurance Exchange 80.00000 21st Century Pacific Insurance Company CO Fire Insurance Exchange 10.00000 21st Century Pacific Insurance Company CO Truck Insurance Exchange 10.00000 21st Century Pinnacle Insurance Company NJ 21st Century North America Insurance Company 100.00000 21st Century Preferred Insurance Company PA 21st Century Centennial Insurance Company 100.00000 21st Century Premier Insurance Company PA 21st Century Centennial Insurance Company 100.00000 21st Century Security Insurance Company PA Farmers Insurance Exchange 80.00000 21st Century Security Insurance Company PA Fire Insurance Exchange 10.00000 21st Century Security Insurance Company PA Truck Insurance Exchange 10.00000 21st Century Superior Insurance Company CA 21st Century North America Insurance Company 100.00000 2501 East Valley Road, LLC DE Fire Insurance Exchange 100.00000 2720 Fourh Ave. LLC DE Farmers Insurance Exchange 100.00000 384 Santa Trinita Ave LLC DE Fire Insurance Exchange 100.00000 3900 Indian Avenue LLC DE Farmers Insurance Exchange 100.00000 460 Gibraltar Drive LLC DE Truck Insurance Exchange 100.00000 50th State Risk Management Services, Inc. HI Hawaii Insurance Consultants, Ltd. 100.00000 5401 Wiles Road LLC FL Mid-Century Insurance Company 100.00000 600 Riverside Parkway LLC DE Farmers Insurance Exchange 100.00000 922 W. Washington Blvd, LLC IL Mid-Century Insurance Company 100.00000 American Pacific Insurance Company, Inc. HI Farmers Insurance Hawaii, Inc. 100.00000 Bristol West Casualty Insurance Company OH Coast National Insurance Company 100.00000 Bristol West Holdings, Inc. DE Farmers Insurance Exchange 42.00000 Bristol West Holdings, Inc. DE Fire Insurance Exchange 3.75000 Bristol West Holdings, Inc. DE Truck Insurance Exchange 6.75000 Bristol West Holdings, Inc. DE Mid-Century Insurance Company 47.50000 Bristol West Insurance Company OH Coast National Insurance Company 100.00000 Bristol West Insurance Services of California, Inc. CA Bristol West Holdings, Inc. 100.00000 Bristol West Insurance Services, Inc. of Florida FL Bristol West Holdings, Inc. 100.00000 Bristol West Preferred Insurance Company MI Bristol West Holdings, Inc. 100.00000 BWIS of Nevada, Inc. NV Bristol West Holdings, Inc. 100.00000 Civic Property and Casualty Company CA Fire Insurance Exchange 80.00000

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Civic Property and Casualty Company CA Truck Insurance Exchange 20.00000 Coast National General Agency, Inc. TX Bristol West Holdings, Inc. 100.00000 Coast National Holding Company CA Bristol West Holdings, Inc. 100.00000 Coast National Insurance Company CA Coast National Holding Company 100.00000 Exact Property and Casualty Company CA Fire Insurance Exchange 80.00000 Exact Property and Casualty Company CA Truck Insurance Exchange 20.00000 Farmers Financial Solutions, LLC NV FFS Holding, LLC 100.00000 Farmers Insurance Company of Arizona AZ Farmers Insurance Exchange 70.00000 Farmers Insurance Company of Arizona AZ Truck Insurance Exchange 20.00000 Farmers Insurance Company of Arizona AZ Fire Insurance Exchange 10.00000 Farmers Insurance Company of Idaho ID Farmers Insurance Exchange 80.00000 Farmers Insurance Company of Idaho ID Fire Insurance Exchange 6.70000 Farmers Insurance Company of Idaho ID Truck Insurance Exchange 13.30000

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Company Domicile Ownership % Farmers Insurance Company of Oregon OR Farmers Insurance Exchange 80.00000 Farmers Insurance Company of Oregon OR Truck Insurance Exchange 20.00000 Farmers Insurance Company of Washington WA Fire Insurance Exchange 80.00000 Farmers Insurance Company of Washington WA Truck Insurance Exchange 20.00000 Farmers Insurance Company, Inc. KS Farmers Insurance Exchange 90.00000 Farmers Insurance Company, Inc. KS Fire Insurance Exchange 10.00000 Farmers Insurance Exchange CA See Note 1 Farmers Insurance Hawaii, Inc. HI Farmers Insurance Exchange 80.00000 Farmers Insurance Hawaii, Inc. HI Fire Insurance Exchange 10.00000 Farmers Insurance Hawaii, Inc. HI Truck Insurance Exchange 10.00000 Farmers Insurance of Columbus, Inc. OH Farmers Insurance Exchange 100.00000 Farmers New Century Insurance Company IL Illinois Farmers Insurance Company 100.00000 Farmers Services Insurance Agency CA Truck Insurance Exchange 100.00000 Farmers Specialty Insurance Company MI Foremost Insurance Company Grand Rapids, 100.00000 Michigan (see note 1) Farmers Texas County Mutual Insurance Company TX See Note 3 FCOA, LLC DE Foremost Insurance Company Grand Rapids, 100.00000 Michigan FFS Holding, LLC NV Mid-Century Insurance Company 100.00000 Fire Insurance Exchange CA See Note 4 Foremost County Mutual Insurance Company TX See Note 5 Foremost Express Insurance Agency, Inc. MI FCOA, LLC 100.00000 Foremost Financial Services Corporation DE FCOA, LLC 100.00000 Foremost Insurance Company Grand Rapids, Michigan MI Farmers Insurance Exchange 80.00000 Foremost Insurance Company Grand Rapids, Michigan MI Fire Insurance Exchange 10.00000 Foremost Insurance Company Grand Rapids, Michigan MI Truck Insurance Exchange 10.00000 Foremost Lloyds of Texas TX See Note 6 Foremost Property & Casualty Insurance Company MI Foremost Insurance Company Grand Rapids, 100.00000 Michigan Foremost Signature Insurance Company MI Foremost Insurance Company Grand Rapids, 100.00000 Michigan GP, LLC DE Bristol West Holdings, Inc. 100.00000 Hawaii Insurance Consultants, Ltd. HI Farmers Insurance Exchange 80.00000 Hawaii Insurance Consultants, Ltd. HI Fire Insurance Exchange 10.00000 Hawaii Insurance Consultants, Ltd. HI Truck Insurance Exchange 10.00000 Illinois Farmers Insurance Company IL Farmers Insurance Exchange 100.00000 Insurance Data Systems, G.P. FL Bristol West Holdings, Inc. 99.90000 Insurance Data Systems, G.P. FL GP, LLC 0.10000 Kraft Lake Insurance Agency, Inc. MI FCOA, LLC 100.00000 Mid-Century Insurance Company CA Farmers Insurance Exchange 80.00000 Mid-Century Insurance Company CA Fire Insurance Exchange 10.00000 Mid-Century Insurance Company CA Truck Insurance Exchange 10.00000 Mid-Century Insurance Company of Texas TX Farmers Insurance Exchange 100.00000 Neighborhood Spirit Property and Casualty Company CA Fire Insurance Exchange 80.00000 Neighborhood Spirit Property and Casualty Company CA Truck Insurance Exchange 20.00000 Security National Insurance Company FL Bristol West Holdings, Inc. 75.00000 Security National Insurance Company FL Insurance Data Systems, G.P. 25.00000 Texas Farmers Insurance Company TX Farmers Insurance Exchange 86.28000 Texas Farmers Insurance Company TX Mid Century Insurance Company 13.72000 Truck Insurance Exchange CA See Note 7 Western Star Insurance Services, Inc. TX FCOA, LLC 100.00000

Note 1: Farmers Insurance Exchange is a California interinsurance exchange owned by its policyholders. Its attorney-in-fact is Farmers Group, Inc, dba Farmers Underwriters Association, which is a subsidiary of Zurich Insurance Group Ltd.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Note 2: Farmers Group Inc, as attorney-in-fact for Farmers Insurance Exchange, provides management services to Farmers Texas County Mutual Insurance Company.

Note 3: Fire Insurance Exchange is a California interinsurance exchange owned by its policyholders. Its attorney-in-fact is Fire Underwriters Association, which is a subsidiary of Zurich Insurance Group Ltd.

Note 4: Foremost County Mutual Insurance Company is a Texas County mutual insurance company managed by Foremost Insurance Company Grand Rapids, Michigan.

Note 5: Foremost Lloyds of Texas underwriters are officers and/or directors of Foremost Insurance Company Grand Rapids, Michigan.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Note 6: Truck Insurance Exchange is a California interinsurance exchange owned by its policyholders. Its attorney-in-fact is Truck Underwriters Association, which is a subsidiary of Zurich Insurance Group Ltd.

Zurich Insurance Group Ltd conducts its primary insurance operations in the United States through two holding companies, each operating INDEPENDENTLY with its own staff: Zurich Holding Company of America, Inc., an entity organized under the laws of the State of Delaware Farmers Group, Inc., an entity organized under the laws of the State of Nevada

Country Code Key (Standard USPS Codes are used for U.S. States)

ANO Netherlands Antilles DEU Germany PRT Portugal ARG Argentina ESP Spain RUS Russian Federation AUT Austria FRA France SGP Singapore AUS Australia GBR United Kingdom SWE Sweden BHR Bahrain HKG Hong Kong SWZ Swaziland BMU Bermuda IDN Indonesia TCA Turks & Caicos BOL Bolivia IRL Ireland THA Thailand BRA Brazil IND India TUR Turkey BHS Bahamas ITA Italy TWN Taiwan CAN Canada JPN Japan URY Uruguay CHE Switzerland LBN Lebanon VEN Venezuela CHL Chile LUX Luxembourg VGB Virgin Islands CHN China MLT Malta ZAF South Africa COL Colombia MEX Mexico CYM Cayman Islands MYS Malaysia

Item 27. Number of Contract Owners As of February 1, 2017, there were 2,496 Non-Qualified Contracts and 3,302 Qualified Contracts issued and in-force.

Item 28. Indemnification Under its By-Laws, Farmers, to the full extent permitted by the Washington Business Corporation Act, will indemnify any person who was or is a party to any proceeding by reason of the fact that he or she is or was a director of Farmers, as provided below.

By-Laws of Farmers New World Life Insurance Company (as amended May 27, 2015)

INDEMNIFICATION OF DIRECTORS, OFFICERS, AND EMPLOYEES

SECTION 58. Indemnification. (a) Each person who acts as a Director, Officer or employee of the Corporation shall be indemnified by the Corporation for all sums which he or she becomes obligated to pay (including counsel fees, expenses and court costs actually and necessarily incurred by him or her) in connection with any action, suit or proceeding in which he or she is made a party by reason of his being, or having been a Director, Officer, or employee of the Corporation, except in relation to matters as to which he or she shall be adjudged in such action, suit or proceeding to be liable for bad faith or misconduct in the performance of his or her duties as such Director, Officer or employee, and except any sum paid to the Corporation in settlement of an action, suit or proceeding based upon bad faith or misconduct in the performance of his or her duties.

(b) The right of indemnification in this article provided shall inure to each Director, Officer and employee of the Corporation, whether or not he or she is such Director, Officer or employee at the time he or she shall become obligated to pay such sums, and whether or not the claim asserted against him or her is based on matters which predate the adoption of this article; and in the event of his or her death shall extend to his or her legal representatives. Each person who shall act as a Director, Officer or employee of the Corporation shall be deemed to be doing so in reliance upon such right of indemnification; and such right shall not be deemed exclusive of any other right to which any such person may be entitled, under any By-Law, agreement, vote of stockholders, or otherwise.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents (c) The Board of Directors of the Corporation, acting at a meeting at which a majority of the quorum is unaffected by self-interest (notwithstanding that other members of the quorum present but not voting may be so affected), shall determine the propriety and reasonableness of any indemnity claimed under this article, and such determination shall be final and conclusive. If, however, a majority of a quorum of the Board of Directors which is unaffected by self-interest and willing to act is not obtainable, the Board of Directors in its discretion may appoint from among the stockholders who are not Directors or Officers or employees of the Corporation, a committee of two (2) or more persons to consider and determine any such question, and the determination of such committee shall be final and conclusive.

RULE 484 UNDERTAKING Insofar as indemnification for liability arising under the Securities Act of 1933 (the Act) may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Item 29. Principal Underwriter (a) Farmers Financial Solutions, LLC is the registrants principal underwriter. It is also the principal underwriter for Farmers Variable Life Separate Account A. (b) Officers and Directors of Farmers Financial Solutions, LLC, and their addresses, are as follows:

Name and Principal Address Positions and Officers with FFS Kenneth A. Bentley1 Director Joe D. Bryant2 Director Julio Da Silva3 Director Alan R. Gildemeister4 Director Dennis J. Lorch5 Director Ottie J. Wallace6 Director John C. Mueting7 President Steven K. Klein7 Vice President and Chief Compliance Officer Joshua Borkin7 Treasurer and Chief Financial Officer Doren E. Hohl8 Secretary Margaret S. Giles8 Assistant Secretary J. Nicole Pryor8 Assistant Secretary Lyndsay E. Spiking8 Assistant Secretary James DeNicholas8 Assistant Treasurer Anthony J. Morris8 Assistant Treasurer Kenneth A. Bentley1 Director Joe D. Bryant2 Director Julio Da Silva3 Director

1 The principal business address is 6642 Shenandoah Ave., Los Angeles, CA 90056. 2 The principal business address is 1720 S. Broadway, Moore, OK 73160. 3 The principal business address is 26 Penstemon, Littleton, CO 80127. 4 The principal business address is 627 Estes Ave., Schaumburg, IL 60193. 5 The principal business address is 30965 Hwy 25, Advance, MO 63730. 6 The principal business address is 9290 E. Hwy 140, Planada, CA 95365. 7 The principal business address is 30801 Agoura Rd., Agoura Hills, CA 91301. 8 The principal business address is 6301 Owensmouth Ave., Woodland Hills, CA 91367.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents (c) Compensation from the Registrant. The following commissions and other compensation were received by the principal underwriter, directly or indirectly, from the Registrant during the Registrants last fiscal year:

(2) (1) Net Underwriting (3) (4) Name of Principal Discounts and Compensation on Brokerage (5) Underwriter Commissions Redemption Commissions Compensation Farmers Financial Solutions, LLC N/A N/A $298,103.60 $131,991.94

Item 30. Location of Books and Records All of the accounts, books, records or other documents required to be kept by Section 31(a) of the Investment Company Act of 1940 and the rules thereunder (including Rule 38a-1), are maintained by Farmers New World Life Insurance Company at 3003 77th Avenue, S.E., Mercer Island, WA 98040, at 2500 Farmers Way, Columbus, OH 43235, and by McCamish Systems, L.L.C. Insurance Administrators at its Service Center located 6425 Powers Ferry Road, Atlanta, GA 30339.

Item 31. Management Services All management contracts are discussed in Part A or Part B of this registration statement.

Item 32. Undertakings and Representations. (a) The registrant undertakes that it will file a Post-Effective amendment to this registration statement as frequently as is necessary to ensure that the audited financial statements in the registration statement are never more than 16 months old for as long as purchase payments under the contracts offered herein are being accepted.

(b) The registrant undertakes that it will include either (1) as part of any application to purchase a contract offered by the prospectus, a space that an applicant can check to request a statement of additional information, or (2) a post card or similar written communication affixed to or included in the prospectus that the applicant can remove and send to Farmers New World Life Insurance Company for a statement of additional information.

(c) The registrant undertakes to deliver any statement of additional information and any financial statements required to be made available under this Form N-4 promptly upon written or oral request to the Company at the address or phone number listed in the prospectus.

(d) The Company represents that in connection with its offering of the contracts as funding vehicles for retirement plans meeting the requirements of Section 403(b) of the Internal Revenue Code of 1986, it is relying on a no-action letter dated November 28, 1988, to the American Council of Life Insurance (Ref. No. IP-6-88) regarding Sections 22(e), 27(c)(1), and 27(d) of the Investment Company Act of 1940, and that paragraphs numbered (1) through (4) of that letter will be complied with.

(e) The Company hereby represents that the fees and charges deducted under the Contracts, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by the Company.

Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, Farmers Annuity Separate Account A certifies that it meets all of the requirements for effectiveness of this registration statement under Rule 485(b) under the Securities Act and has duly caused this Post-Effective Amendment No. 23 to its registration statement to be signed on its behalf by the undersigned, duly authorized, in the City of Mercer Island, and the State of Washington, on the 18th day of May, 2018.

FARMERS ANNUITY SEPARATE ACCOUNT A (Registrant)

Attest: /s/ Garrett B. Paddor By: /s/ Diane Davis Garrett B. Paddor Diane Davis General Counsel and Corporate Secretary President and Chief Executive Officer Farmers New World Life Insurance Company Farmers New World Life Insurance Company

FARMERS NEW WORLD LIFE INSURANCE COMPANY (Depositor)

Pursuant to the requirements of the Securities Act of 1933, this Post-Effective Amendment No.23 to the registration statement has been signed by the following persons in the capacities and on the dates indicated.

Signature Title * Director and Chairman of the Board Jeffrey Dailey

/s/ Diane Davis Director, President and Chief Executive Officer Diane Davis

* Director David Travers

* Director Richard Kearns

* Director and Assistant Treasurer Scott Lindquist

* Director Annette Thompson

* Director Warren Tucker

/s/ Diane Davis *On May 18, 2018, as Attorney-In-Fact pursuant to Powers of * by Diane Davis Attorney filed herewith or by previous amendment.

Exhibit (b)(9) Opinion and Consent of Garrett B. Paddor, Esquire Exhibit (b)(10)(a) Consent of PricewaterhouseCoopers LLP Exhibit (b)(7)(a) Reinsurance Agreement between Farmers New World Life Insurance Company and RGA Reinsurance Company Effective April 1, 2017. Exhibit (b)(7)(b) Amendment One to the Reinsurance Agreement Effective April 1, 2017, between Farmers New World Life Insurance Company and RGA Insurance Company.

Farmers New World Life Insurance Company Legal Department 3003 77th Avenue S.E. Mercer Island, Washington 98040

Garrett B. Paddor General Counsel and Corporate Secretary Direct: 206/275-8152 Main: 206/275-8140 Fax: 206/275-8144

May 18, 2018

Board of Directors Farmers New World Life Insurance Company Farmers Variable Annuity Separate Account A 3003 77th Avenue S.E. Mercer Island, Washington 98040

Ladies and Gentlemen: 1. In my capacity as General Counsel and Corporate Secretary of Farmers New World Life Insurance Company (Farmers), I have participated in the preparation and review of this Post-Effective Amendment No. 23 to the Registration Statement on Form N-4 (File No. 333-85183) filed with the Securities and Exchange Commission under the Securities Act of 1933 for the registration of individual flexible premium variable annuity contract (the Contract) to be issued with respect to Farmers Variable Annuity Separate Account A (the Account). The Account was established on April 6, 1999, by the Board of Directors of Farmers as a separate account for assets applicable to the Contracts, pursuant to the provisions of Section 48.18A.020 of the Washington Insurance Laws. 2. The Account is a separate account of Farmers validly existing pursuant to Washington law and the regulations issued thereunder. 3. The Contracts, when issued as contemplated by the Registration Statement, will be legal and binding obligations of Farmers in accordance with their terms. In arriving at the foregoing opinion, I have made such examination of law and examine such records and other documents as I judged to be necessary or appropriate. I hereby consent to the filing of this opinion as an exhibit to the above referenced Registration Statement and to the use of my name under the caption Legal Matters in the Statement of Additional Information constituting part of this Registration Statement.

Sincerely,

/s/ Garrett B. Paddor Garrett B. Paddor General Counsel and Corporate Secretary Farmers New World Life Insurance Company

We hereby consent to the use in this Registration Statement on Form N-4 of our report dated May 17, 2018, relating to the statutory financial statements and schedules of Farmers New World Life Insurance Company (prepared in conformity with accounting practices prescribed or permitted by the Washington State Office of the Insurance Commissioner), which appears in such Registration Statement.

We also consent to the use in this Registration Statement on Form N-4 of our report dated May 17, 2018, relating to the financial statements of the subaccounts listed in such report of Farmers Annuity Separate Account A, which appears in such Registration Statement.

We also consent to the reference to us under the heading Experts in such Registration Statement.

/s/ PricewaterhouseCoopers LLP Los Angeles, California May 17, 2018

REINSURANCE AGREEMENT

Between

FARMERS NEW WORLD LIFE INSURANCE COMPANY

(referred to as the Ceding Company) and

RGA REINSURANCE COMPANY

(referred to as the Reinsurer)

ARTICLE I DEFINITIONS 1 Section 1.1 Definitions 1 ARTICLE II BASIS OF REINSURANCE AND BUSINESS REINSURED 11 Section 2.1 Coverage 11 Section 2.2 Separate Account 11 Section 2.3 Insurance Contract Changes 12 Section 2.4 Liability 12 Section 2.5 Indemnity Reinsurance 12 Section 2.6 Territory 12 Section 2.7 OFAC Exclusion 12 ARTICLE III PAYMENTS; ADDITIONAL CONSIDERATION; ADMINISTRATION 13 Section 3.1 Payments by the Parties 13 Section 3.2 Additional Consideration 14 Section 3.3 Net Settlement 14 Section 3.4 Errors 15 Section 3.5 Delayed Payments 15 Section 3.6 Offset 15 Section 3.7 Administration 15 Section 3.8 Books and Records Access 16 Section 3.9 Certain Reports from the Reinsurer 16 Section 3.10 Non-Guaranteed Elements 17 Section 3.11 Policy Exchanges, Replacements or Surrenders 17 Section 3.12 Contested Claims 17 Section 3.13 Current Practices 18

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document ARTICLE IV LICENSES; RESERVE CREDIT; SECURITY 18 Section 4.1 Licenses; Reserve Credit 18 Section 4.2 Security 19 Section 4.3 Trust Account and Settlements 20 Section 4.4 Authorized Investments 20 Section 4.5 Deposit of Assets 20 Section 4.6 Withdrawal of Assets from the Trust Account 21 Section 4.7 Adjustment of Security and Withdrawals 21 Section 4.8 Continuation of a FMV Triggering Event 24 ARTICLE V REPRESENTATIONS AND WARRANTIES 24 Section 5.1 Closing Statement and Ceding Company Data Representations 24 Section 5.2 Ceding Company Closing Date Representations 25 Section 5.3 Reinsurer Closing Date Representations 29 ARTICLE VI OVERSIGHTS; COOPERATION; CLAIMS 30 Section 6.1 Oversights 30 Section 6.2 Cooperation 30 Section 6.3 The Foreign Account Tax Compliance Act 31 ARTICLE VII DAC TAX 31 Section 7.1 Election 31 Section 7.2 Exchange of Information 31 Section 7.3 Effectiveness 32 Section 7.4 United States Tax Status Representation 32 ARTICLE VIII INSOLVENCY 32 Section 8.1 Insolvency of the Ceding Company 32 ARTICLE IX DURATION; RECAPTURE 33 Section 9.1 Duration 33

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Section 9.2 Survival 33 Section 9.3 Termination for Failure to Pay Amounts Due to Reinsurer 33 Section 9.4 Recapture 34 Section 9.5 Terminal Accounting Payments 34 ARTICLE X INDEMNIFICATION; DISCLAIMER 35 Section 10.1 Reinsurers Obligation to Indemnify 35 Section 10.2 Ceding Companys Obligation to Indemnify 35 Section 10.3 Notice of Claim; Defense 35 Section 10.4 Procedures for Direct Claims 37 Section 10.5 No Duplication of Indemnity 37 Section 10.6 Limitations and Recovery by Indemnified Party 37 ARTICLE XI MISCELLANEOUS 39 Section 11.1 Further Actions 39 Section 11.2 Notices 39 Section 11.3 Entire Agreement 40 Section 11.4 Waivers and Amendments 40 Section 11.5 Governing Law 40 Section 11.6 Arbitration 40 Section 11.7 No Third Party Beneficiaries 41 Section 11.8 Expenses 41 Section 11.9 Counterparts 41 Section 11.10 Severability 41 Section 11.11 Publicity 41 Section 11.12 Treatment of Confidential Information 42 Section 11.13 Assignment 43 Section 11.14 Specific Performance 44

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Section 11.15 Utmost Good Faith 44 Section 11.16 Interpretation 44 Section 11.17 Incontestability 44 Section 11.18 Dollar References 45

INDEX OF EXHIBITS Exhibit A Form of Letter of Credit

INDEX OF SCHEDULES Schedule A Investment Guidelines Schedule B Terminal Settlement Schedule C Settlement Statement Schedule D Expense Allowances Schedule E Reinsured Contracts Schedule F Separate Account Schedule G Transferred Assets Schedule H Ceding Company Data Schedule I Closing Statement Schedule J RBC Certification Requirements Schedule K Ceding Companys Disclosure Schedule Schedule L Reinsurers Disclosure Schedule Schedule M Crediting Rates

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THIS REINSURANCE AGREEMENT (this Agreement) is made and entered into on May 17, 2017 (the Closing Date) and effective as of the Effective Date by and between Farmers New World Life Insurance Company, a Washington-domiciled life insurance company (the Ceding Company) and RGA Reinsurance Company, a Missouri-domiciled life insurance company (the Reinsurer). For purposes of this Agreement, the Ceding Company and the Reinsurer shall each be deemed a Party.

WHEREAS, simultaneously with the execution and delivery of this Agreement on the date hereof, the Ceding Company, the Reinsurer and the Trustee (as defined below) shall enter into the Trust Agreement (as defined below) pursuant to which the Trustee shall hold assets as security for the satisfaction of the obligations of the Reinsurer to the Ceding Company under this Agreement.

NOW, THEREFORE, in consideration of the mutual and several promises and undertakings herein contained, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Ceding Company and the Reinsurer agree as follows:

ARTICLE I DEFINITIONS

Section 1.1 Definitions. The following terms have the respective meanings set forth below throughout this Agreement: Accounting Period means each calendar month during the term of this Agreement or any fraction thereof ending on the Recapture Date or the date this Agreement is otherwise terminated in accordance with Section 9.1, as applicable; provided, that the initial Accounting Period shall commence as of the Effective Date and end on the last day of the month in which the Closing Date occurs.

Affiliate means, with respect to any Person, at the time in question, any other Person controlling, controlled by or under common control with such Person.

Agreement has the meaning set forth in the preamble.

Applicable Accounting Principles means, (a) with respect to the Ceding Company the statutory accounting principles prescribed or practices permitted by the Ceding Company Domiciliary State, consistently applied, and (b) with respect to the Reinsurer, the statutory accounting principles prescribed or practices permitted by the Reinsurer Domiciliary State consistently applied.

Applicable Law means any U.S. domestic or foreign federal, provincial, state or local statute, law, ordinance or code, or any written rules, regulations or administrative interpretations issued by any Governmental Authority pursuant to any of the foregoing, and any order, writ, injunction, directive, judgment or decree of a court of competent jurisdiction applicable to the Parties hereto.

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Authorized Investments has the meaning set forth in Section 4.4.

Books and Records means all books and records that relate principally to the Reinsured Contracts and the Separate Account, including administrative records, claim records, sales records, underwriting records, financial records, reinsurance records, compliance records and other records, in whatever form maintained, but excluding certificates of incorporation, bylaws, corporate seals, licenses to do business, minute books and other corporate records relating to the corporate organization or capitalization of Ceding Company or its Affiliates, Tax Returns or records, records of any employee of Ceding Company or its Affiliates, benefit plan records with respect to any employee of Ceding Company or its Affiliates, and books and records that are subject to the attorney-client, work product, or other similar privilege or doctrine; provided, that to the extent any Books and Records contain material that does not relate to the Reinsured Contracts or Separate Account, such material shall not constitute Books and Records for purposes of this Agreement and any such material may be redacted from the Books and Records.

Business Day means any day other than a Saturday, Sunday, a day on which banking institutions in the City of New York or Seattle, Washington are permitted or obligated by Applicable Law to be closed or a day on which the New York Stock Exchange is closed for trading.

Business Material Adverse Effect means a material adverse effect on (a) the Reinsured Contracts, or (b) the ability of the Ceding Company to timely perform its obligations under the Transaction Documents.

Ceding Commission means twenty-three million four hundred forty-six thousand one hundred ninety-two dollars ($23,446,192).

Ceding Company has the meaning set forth in the preamble.

Ceding Company Data means the Ceding Company Data described in Schedule H.

Ceding Company Domiciliary State means the State of Washington, or, if the Ceding Company changes its state of domicile to another state within the United States, such other state.

Ceding Company Extra-Contractual Obligations means Extra-Contractual Obligations other than Reinsurer Extra-Contractual Obligations.

Ceding Company Indemnified Parties has the meaning set forth in Section 10.1.

Change in Applicable Law means a change in or modification, amendment or restatement of, or a change in or modification, amendment or restatement of the interpretation by the applicable Governmental Authority of, the Applicable Law of the Ceding Company Domiciliary State.

Claim Notice has the meaning set forth in Section 10.3(a).

Closing Date has the meaning set forth in the preamble.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Closing Date IMR Amount means the Ceding Companys Interest Maintenance Reserve that is attributable to the Reinsured Contracts immediately prior to the Effective Date, excluding, for the avoidance of doubt, any Interest Maintenance Reserve that is created on the Closing Date as a result of the transactions contemplated by this Agreement.

Closing Statement has the meaning set forth in Section 3.1(a)(i).

Code means the United States Internal Revenue Code of 1986, as amended, and the United States Treasury Regulations promulgated thereunder.

Company Action Level RBC Ratio means, at any date of determination, (a) the quotient of (i) divided by (ii), multiplied by (b) one hundred (100), where: (i) equals the Total Adjusted Capital of the Reinsurer determined in accordance with the Applicable Law of the Reinsurer Domiciliary State; and (ii) equals two hundred percent (200%) of the authorized control level risk based capital of the Reinsurer determined in accordance with the Applicable Law of the Reinsurer Domiciliary State;

provided, however, that if the Applicable Law of the Reinsurer Domiciliary State in respect to the calculation of the Company Action Level RBC Ratio is changed, modified, eliminated or combined with another solvency ratio, then the Company Action Level RBC Ratio shall be determined in accordance with a method mutually satisfactory to the Reinsurer and the Ceding Company.

Contractholder means the holder of any Reinsured Contract.

Delayed Settlement Assets has the meaning set forth in Section 3.1(a)(vi).

Effective Date means 12:00:01 a.m. (Pacific time) on April 1, 2017.

Enforceability Exceptions has the meaning set forth in Section 5.2.

Event Reference Date means, with respect to an RBC Ratio Event, the reporting deadline corresponding to the calendar quarter in which such RBC Ratio Event has occurred.

Expense Allowances means the monthly expense allowance amounts set forth on Schedule D.

Extra-Contractual Obligations means all Liabilities to any Person arising out of or relating to the Reinsured Contracts (other than Liabilities arising under the express terms and conditions and within the policy limits of the Reinsured Contracts), including, without limitation, any Liability for fines, penalties, Taxes, fees, forfeitures, compensatory, punitive, exemplary, special, treble, bad faith, tort or any other form of damages, as well as all legal fees and expenses relating thereto, which Liabilities arise out of, result from or relate to, any act, error or omission, whether or not intentional, negligent, in bad faith or otherwise (actual or alleged), including, without limitation, (a) the form, sale, marketing, distribution, underwriting, production, issuance,

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document cancellation or administration of the Reinsured Contracts, (b) the investigation, defense, trial, settlement or handling of claims, benefits, or payments under the Reinsured Contracts, (c) the failure to pay or the delay in payment or errors in calculating or administering the payment of benefits, claims or any other amounts due or alleged to be due under or in connection with the Reinsured Contracts, (d) any escheat or unclaimed property liabilities related to, but in excess of the express terms of, the Reinsured Contracts, including amounts for regulatory examination, compliance or monitoring costs associated therewith, (e) the failure of the Reinsured Contracts to qualify for their intended tax status, (f) any Taxes imposed as a result of a failure to withhold Taxes as required by Applicable Law or a failure to discharge any reporting or disclosure obligation in respect of Taxes or (g) any ex gratia payments made by the Ceding Company without the Reinsurers consent (e.g., any payments the Ceding Company is not required to make under the express terms of the Reinsured Contracts).

Fair Market Value means, as of any date of determination: (a) in the case of cash and cash equivalents, the face amount thereof; (b) in the case of securities listed on an exchange or in an over-the-counter market (other than securities that constitute cash equivalents as described in clause (a) above), the closing price on such exchange or market (or the average of the closing bid and asked prices if there is no closing price) plus all accrued but unpaid interest on such securities through the last Business Day preceding such date of determination if such amount is not already reflected in such closing price (or such bid and asked price); (c) in the case of Letters of Credit, the face amount thereof; and (d) in the case of any other asset not covered by clauses (a) or (b) above, the fair market value as determined using the methodology that the Reinsurer applies with respect to the same or similar assets in the Reinsurers general accounts.

FATCA has the meaning set forth in Section 6.3.

FMV Triggering Event means any of the following occurrences: (a) there has been a failure by the Reinsurer to pay any undisputed amounts due hereunder, or to fund the Trust Account to any undisputed required amount, and such breach has not been cured within thirty (30) calendar days after notice thereof from the Ceding Company; (b) a Reserve Credit Event has occurred and is continuing; or (c) the Reinsurer has been placed into liquidation, rehabilitation, conservation, supervision, receivership or similar proceedings, or there has been instituted against it proceedings for the appointment of a receiver, liquidator, rehabilitator, conservator or trustee in bankruptcy or other agent known by whatever name, to take possession of its assets or assume control of its operations.

General Account Liabilities means, with respect to the Reinsured Contracts, the following: (a) all claims, benefits, claim expenses (including litigation expenses reasonably incurred by the Ceding Company related to any contested claims described in Section 3.12), unearned premium, interest on claims or unearned premiums, interest on policy funds, withdrawals, amounts payable for returns or refunds of premium, surrender amounts and any other amounts payable under the Reinsured Contracts; provided, that in the event of the annuitization of any Reinsured Contract, the Reinsurer shall only be liable for the following amounts for periods

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document following the annuitization: (i) for those Reinsured Contracts which do not have a Guaranteed Retirement Income Benefit rider, the account value with respect to such Reinsured Contract, calculated in accordance with the Reinsured Contract as of the date of annuitization, and (ii) for those Reinsured Contracts which have a Guaranteed Retirement Income Benefit rider, the greater of (A) and (B) for such Reinsured Contract, where: (A) equals the account value with respect to such Reinsured Contract, calculated in accordance with the Reinsured Contract as of the date of annuitization; and (B) equals the Income Base, as defined in the Guaranteed Retirement Income Benefit rider, calculated in accordance with the Reinsured Contracts as of the date of annuitization; (b) all Liabilities arising out of changes to the terms and conditions of the Reinsured Contracts consented to by the Reinsurer, mandated by Applicable Law or initiated by a Contractholder, claimant or beneficiary pursuant to the terms of the applicable Reinsured Contracts; (c) all escheat and unclaimed property Liabilities arising under, and payable in accordance with the express terms of, the Reinsured Contracts; and (d) all Reinsurer Extra-Contractual Obligations, in each case of (a) through (d) that are payable at or after the Effective Date. For the avoidance of doubt, General Account Liabilities (i) exclude (A) the Separate Account Liabilities and any Ceding Company Extra-Contractual Obligations and (B) premium taxes and guaranty fund assessments with respect to the Reinsured Contracts, and (ii) include any general account fixed options under Reinsured Contracts.

General Account Statutory Reserves means, as of any date of determination, the amount that would be required by the Ceding Company to be calculated in a manner (consistent with lines 1-4) of the Liabilities, Surplus and Other Funds page of the 2016 NAIC Annual Statement Blank (or the equivalent line or lines in the event of changes to the NAIC Annual Statement Blank subsequent to December 31, 2016) in respect of the General Account Liabilities, determined in accordance with the Applicable Accounting Principles of the Ceding Company.

Governmental Authority means any court, administrative or regulatory agency or commission, or other federal, provincial, state or local governmental or self-regulatory authority, instrumentality or body having jurisdiction over any Party hereto.

IMR Amount means (a) the Closing Date IMR Amount plus (b) any Interest Maintenance Reserve that is created on or following the Effective Date with respect to the assets supporting the General Account Liabilities determined in accordance with Applicable Accounting Principles of the Reinsurer.

Indemnified Party has the meaning set forth in Section 10.3(a).

Indemnifying Party has the meaning set forth in Section 10.3(a).

Interest Maintenance Reserve means the liability reserve, the purpose of which is to amortize realized capital gains and losses resulting from fluctuations in interest rates, determined (a) if on or prior to the Closing Date, in accordance with Applicable Accounting Principles of the Ceding Company, or (b) following the Closing Date, in accordance with Applicable Accounting Principles of the Reinsurer.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Interest Rate means the sum of (a) the average of the daily prime rate (expressed as a rate per annum) published in The Wall Street Journal for each of the calendar days in the applicable period, plus (b) one and one-half percent (1.5%) per annum.

Investment Assets means any interest in any bonds, notes, debentures, instruments of indebtedness, stocks, and all other equity interests, certificates issued by or interests in trusts, or other assets acquired or held for investment purposes.

Investment Company Act means the Investment Company Act of 1940, as amended.

Investment Guidelines means the Investment Guidelines set forth in Schedule A.

Letter of Credit means one or more clean, irrevocable, unconditional letters of credit issued to the Trustee in substantially in the form attached hereto as Exhibit A, and issued by a bank permitted by the National Association of Insurance Commissioners for credit for reinsurance purposes.

Liabilities means any and all debts, liabilities, commitments or obligations, whether direct or indirect, accrued or fixed, known or unknown, absolute or contingent, matured or unmatured or determined or determinable, whether arising in the past, present or future.

LOC Permitted Amount means, (a) in the event that an RBC Ratio Event has occurred and is continuing for one (1) or more calendar quarters following the calendar quarter in which the Event Reference Date occurs, the amount by which (i) ninety percent (90%) of the amount of the General Account Statutory Reserves exceeds (ii) the aggregate Fair Market Value of Authorized Investments in the Trust Account, in each case of (i) and (ii), as of the last day of the calendar quarter following the calendar quarter in which the Event Reference Date occurs, and (b) in the event that an FMV Triggering Event has occurred and is continuing, the amount by which (i) the General Account Statutory Reserves exceed (ii) the Fair Market Value of the Authorized Investments in the Trust Account, in each case of (i) and (ii), as of the last day of the calendar quarter in which the FMV Triggering Event occurs.

Loss means actual out-of-pocket losses, liabilities, damages, costs, expenses (including reasonable attorneys fees), interest and penalties, but shall not include any measure of incidental, indirect, special, punitive, contingent, consequential, lost profit or diminution in value or other similar damages.

Net Settlement has the meaning set forth in Section 3.3.

Non-Guaranteed Elements means rider charges, fees, loads and expense charges, crediting rates, mortality and expense charges, administrative expense risk charges, variable premium rates, variable paid-up amounts and other policy features that are subject to change at the election of the Ceding Company.

Orders has the meaning set forth in Section 5.2(c)(i).

Party has the meaning set forth in the preamble.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Permits means licenses, permits, orders, approvals, registrations, authorizations and qualifications with Governmental Authorities.

Person means any individual, corporation, partnership, firm, joint venture, association, joint-stock company, limited liability company, trust, unincorporated organization, governmental, judicial or regulatory body, business unit, division or other entity.

Personal Information means (a) any nonpublic personal information as such term is defined under the Title V of the U.S. Gramm-Leach-Bliley Act, 15 U.S.C. § 6801 et seq., and the rules and regulations issued thereunder, (b) any information that can specifically identify an individual, such as name, signature, address, social security number, telephone number or other unique identifier, together with any other information that relates to an individual who has been so identified in any format whether written, electronic or otherwise, (c) information that can be used to authenticate an individual (including, without limitation, passwords or PINs, biometric data, unique identification numbers, answer to security questions, or other personal identifiers) in any format whether written, electronic or otherwise or (d) any personally identifiable medical, financial and other personal information about proposed, current and former applicants, policy owners, contract holders, insureds, claimants and beneficiaries of the Reinsured Contracts.

Premiums means premiums, considerations, deposits, policy fees and other similar receipts received by or on behalf of the Ceding Company in respect of the Reinsured Contracts. All Premiums for individual fixed deferred annuities with three percent (3%) or four percent (4%) guarantees shall be limited to $6,000 per Reinsured Contract per year.

Proprietary Information has the meaning set forth in Section 11.12(a).

Qualifying Losses means any individual indemnifiable Loss or series of such related indemnifiable Losses in excess of one hundred thousand dollars ($100,000).

Ratio of Market Value to Book Value means, as of any date, the quotient of (a) divided by (b), where: (a) equals the Fair Market Value of the Authorized Investments held in the Trust Account as of such date; and (b) equals the Statutory Book Value of the Authorized Investments held in the Trust Account as of such date.

RBC Reporting Deadline has the meaning set forth in Schedule J.

RBC Ratio Event means an occurrence wherein the Reinsurers Company Action Level RBC Ratio as of any calendar quarter end is at or below two hundred seventy-five percent (275%).

Recapture Date has the meaning set forth in Section 9.4(a).

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Recapture Triggering Event means any of the following occurrences: (a) the Reinsurers Company Action Level RBC Ratio as of any calendar quarter end, as reported in the Reinsurers certification with respect to such calendar quarter end, delivered in accordance with Section 3.9(a), is at or below one hundred seventy- five percent (175%) and the Reinsurer has not cured such shortfall by the immediately succeeding RBC Reporting Deadline; (b) there has been a failure by the Reinsurer to pay any undisputed amounts due hereunder, or to fund the Trust Account to any undisputed required amount, and such breach has not been cured within thirty (30) calendar days after notice thereof from the Ceding Company; (c) a Reserve Credit Event has occurred; (d) the Reinsurer is in material breach of the Investment Guidelines in directing the investment of the assets in the Trust Account, and such breach has not been cured within thirty (30) calendar days after notice thereof from the Ceding Company; (e) the Reinsurer has been placed into liquidation, rehabilitation, conservation, supervision, receivership or similar proceedings, or there has been instituted against it proceedings for the appointment of a receiver, liquidator, rehabilitator, conservator or trustee in bankruptcy or other agent known by whatever name, to take possession of its assets or assume control of its operations; or (f) the Reinsurer makes claims against the Ceding Company for indemnification pursuant to Section 10.2 with respect to any and all Losses incurred by the Reinsurer to the extent arising from any breach by the Ceding Company of the representations and warranties made by the Ceding Company in Section 5.1(b) in an aggregate amount of thirty million dollars ($30,000,000) or more.

Reinsured Contracts means the individual variable annuities, individual fixed deferred annuities and structured settlement annuities described on Schedule E issued or assumed by Ceding Company, including such contracts that are renewed or reinstated at any time before, at or after the Effective Date by the Ceding Company, together with all binders, slips, certificates, applications therefor, amendments, supplements, endorsements, settlement options and riders thereto issued or entered into in connection with such contracts.

Reinsured Risks has the meaning set forth in Section 2.1.

Reinsurer has the meaning set forth in the preamble.

Reinsurer Extra-Contractual Obligations has the meaning set forth in Section 3.12.

Reinsurer Domiciliary State means the State of Missouri, or if the Reinsurer changes its state of domicile to another state within the United States, such other state.

Reinsurer Indemnified Parties has the meaning set forth in Section 10.2.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Reinsurer Material Adverse Effect means a material adverse effect on the ability of the Reinsurer to timely perform its obligations under the Transaction Documents.

Representative means, with respect to any Person, such Persons Affiliates and the officers, directors, employees, agents, investment bankers, attorneys, financial advisers, accountants, actuaries or other representatives of such Person or any of its Affiliates.

Required Amount means with respect to any date of determination, (a) in the event that an RBC Ratio Event is not continuing, the greater of (i) one hundred two percent (102%) of the General Account Statutory Reserves as of such date and (ii) an amount equal to the sum of (A) the General Account Statutory Reserves as of such date plus (B) the Unamortized IMR Amount as of such date, and (b) in the event that an RBC Ratio Event has occurred and is continuing for one (1) or more consecutive calendar quarters following the calendar quarter in which the Event Reference Date occurs, an amount equal to the sum of (i) one hundred five percent (105%) of the General Account Statutory Reserves as of such date plus (ii) the Unamortized IMR Amount as of such date.

Reserve Credit means full statutory financial statement credit for the reinsurance ceded to the Reinsurer under this Agreement in the Ceding Companys NAIC Annual Statement Blank and in all other statutory financial statements required to be filed by the Ceding Company with the Governmental Authority charged with supervision of insurance companies in the Ceding Company Domiciliary State.

Reserve Credit Event means the failure of the Ceding Company to receive Reserve Credit, including any such failure due to (a) the failure of the Reinsurer to remain licensed or an authorized reinsurer in the Ceding Company Domiciliary State or (b) the Reinsurer being placed into liquidation, rehabilitation, conservation, supervision, receivership or similar proceedings, or the institution against the Reinsurer of proceedings for the appointment of a receiver, liquidator, rehabilitator, conservator or trustee in bankruptcy or other agent known by whatever name, to take possession of its assets or assume control of its operations; provided, that a Reserve Credit Event shall not be deemed to have occurred if the Reinsurer shall have cured such Reserve Credit Event within thirty (30) calendar days following the occurrence of such event.

Reserve Credit Trust Provisions means those provisions of the Trust Agreement that shall be modified, as described in Section 1(i) and Exhibit P of the Trust Agreement, upon the occurrence and continuation of an FMV Triggering Event, and immediately after the Ceding Company has provided notice of such FMV Triggering Event to the Trustee thereof (and such notice has not been rescinded by the Ceding Company), in accordance with the terms of this Agreement and the Trust Agreement.

Security Funding Reporting Date has the meaning set forth in Section 4.7(a).

Separate Account means the variable annuity separate account of Ceding Company described on Schedule F.

Separate Account Liabilities means those liabilities that are payable from the assets of the Separate Account in respect of the Reinsured Contracts. For avoidance of doubt, Separate Account Liabilities excludes any Ceding Company Extra-Contractual Obligations.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Separate Account Revenue means all mortality and expense risk charges, administrative expense charges, endorsement or rider charges, contract maintenance charges, back end sales loads, policy loan interest and other considerations billed separately for the Variable Annuity Reinsured Contracts, and any other charges, fees and similar amounts received from the Separate Account in respect of the Variable Annuity Reinsured Contracts, including any revenue sharing fees, service fees, distribution and other similar fees received by the Ceding Company with respect to the Variable Annuity Reinsured Contracts from or in respect of funds pursuant to a plan adopted pursuant to Rule 12b-1 under the Investment Company Act.

Services has the meaning set forth in Section 3.7(a).

Settlement Statement has the meaning set forth in Section 3.3.

Statutory Book Value means, with respect to any Authorized Investments held in the Trust Account, the amount permitted to be carried by the Reinsurer as an admitted asset consistent with the statutory accounting principles prescribed by the Reinsurer Domiciliary State, without regard to any permitted practice applicable to Reinsurer, consistently applied.

Targeted Crediting Rate means the Targeted Crediting Rate calculated in accordance with Schedule M.

Tax (or Taxes as the context may require) means any tax, however denominated, imposed by any federal, state, local, municipal, territorial or provincial government or any agency or political subdivision of any such government (a Taxing Authority), including any net income, alternative or add-on minimum tax, gross income, gross receipts, premium, sales, use, gains, goods and services, production, documentary, recording, social security, unemployment, disability, workers compensation, estimated, ad valorem, value added, transfer, franchise, profits, license, withholding, payroll, employment, excise, severance, stamp, capital stock, occupation, personal or real property, environmental or windfall profit tax, premiums, custom, duty or other tax, governmental fee or other like assessment or charge, together with any interest, penalty, addition to tax or additional amount imposed by any Taxing Authority relating to the assessment or collection thereof.

Tax Return means any return or report (including any election, declaration, disclosure, schedule, estimate or information return) required to be supplied to a Taxing Authority relating to Taxes.

Taxing Authority has the meaning set forth in the definition of Tax.

Terminal Settlement has the meaning set forth in Section 9.5(a).

Terminal Settlement Statement has the meaning set forth in Section 9.5(a).

Terminal Settlement Statement Date means, (a) in the case of a termination by the Reinsurer pursuant to Section 9.3, the date that is thirty (30) calendar days after the date of termination, and (b) in the case of recapture by the Ceding Company pursuant to Section 9.4, the date that is thirty (30) calendar days after the Recapture Date.

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Total Adjusted Capital means, as of any date of determination, total adjusted capital as calculated in accordance with the Applicable Laws of the Reinsurer Domiciliary State.

Transaction Consultant means an independent accounting or actuarial firm of nationally recognized standing as may be mutually agreed by the Reinsurer and the Ceding Company.

Transaction Documents means this Agreement and the Trust Agreement.

Transferred Assets means the portfolio of Authorized Investments set forth on Schedule G.

Treasury Regulations means the Treasury Regulations (including temporary and proposed Treasury Regulations) promulgated by the United States Department of Treasury with respect to the Code or other United States federal Tax statutes.

Trust Account means the trust account established by the Reinsurer for the benefit of the Ceding Company under the Trust Agreement.

Trust Agreement means that certain Trust Agreement dated as of the date hereof by and among the Reinsurer, the Ceding Company and the Trustee.

Trustee means the trustee under the Trust Agreement.

Unamortized IMR Amount means, with respect to any date of determination, the portion of the IMR Amount which remains unamortized as of such date, determined in accordance with Applicable Accounting Principles of the Reinsurer.

Variable Annuity Reinsured Contract means a Reinsured Contract that is an individual variable annuity.

ARTICLE II BASIS OF REINSURANCE AND BUSINESS REINSURED

Section 2.1 Coverage. Upon the terms and subject to the conditions and other provisions of this Agreement, as of the Effective Date, the Ceding Company hereby cedes to the Reinsurer, and the Reinsurer hereby agrees to indemnify the Ceding Company (a) on a coinsurance basis, for one hundred percent (100%) of the General Account Liabilities of the Ceding Company; and (b) on a modified coinsurance basis, for one hundred percent (100%) of the Separate Account Liabilities of the Ceding Company, in each case, payable by the Ceding Company on or after the Effective Date (the Reinsured Risks). The Reinsurer does not indemnify the Ceding Company for, and shall not be liable for, any Ceding Company Extra-Contractual Obligations.

Section 2.2 Separate Account. For each Variable Annuity Reinsured Contract, the amounts to be invested on a variable basis in accordance with the terms of such Variable Annuity Reinsured Contract shall be held by the Ceding Company in the Separate Account, and all premiums, deposits and other amounts collected with respect to the Variable Annuity Reinsured

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Contract shall be deposited in the Separate Account to the extent required to be deposited therein by such Variable Annuity Reinsured Contract. The Ceding Company shall retain, control and own all assets contained in the Separate Account and shall hold Separate Account Statutory Reserves with respect to the Variable Annuity Reinsured Contracts that are funded, in whole or in part, by the Separate Account and such Separate Account Statutory Reserves shall be reported by the Ceding Company on its Separate Account balance sheets, consistent with the Applicable Accounting Principles of the Ceding Company.

Section 2.3 Insurance Contract Changes. Except (a) as directed by or consented to by the Reinsurer, in writing, or (b) for any change initiated by the Contractholder, claimant or beneficiary of a Reinsured Contract or mandated by Applicable Law, the Ceding Company shall not, on its own initiative, change the terms of any Reinsured Contract.

Section 2.4 Liability. Except as specified in Section 2.3, the Reinsurers Liability under this Agreement shall attach simultaneously with that of the Ceding Company under the Reinsured Contracts but in no event prior to the Effective Date, and the Reinsurers Liability under this Agreement shall be subject in all respects to the same risks, terms, rates, conditions, assessments and Premiums payable to the Ceding Company, and to the same modifications, alterations and cancellations of the Reinsured Contracts.

Section 2.5 Indemnity Reinsurance. This Agreement is an indemnity coinsurance and modified coinsurance agreement solely between the Ceding Company and the Reinsurer, and the performance of the obligations of each Party under this Agreement shall be rendered solely to the other Party. The Ceding Company shall be and shall remain the only party hereunder that is liable to any insured, Contractholder, claimant or beneficiary under any annuity contract reinsured hereunder.

Section 2.6 Territory. The territorial limits of this Agreement shall be identical with those of the Reinsured Contracts.

Section 2.7 OFAC Exclusion. The Ceding Company hereby represents and warrants that it has established procedures to fully comply with all Applicable Laws, regulations and guidelines dealing with the prevention and detection of money laundering and terrorist financing. The Ceding Company understands that the Reinsurer has established procedures to, and shall fully comply with, the lists made and maintained by the United States Department of Treasury identifying persons or countries as being blocked persons and/or countries, and acknowledges that in no case shall the Reinsurer be liable to reimburse claims and benefits to the Ceding Company involving any person or entity named under any Applicable Laws, regulations, executive orders or similar actions that impose sanctions or prohibit or restrict transactions or relations with designated persons, entities, organizations or governments, including, without limitation, the United States Department of the Treasury lists of Specially Designated Nationals and Blocked Persons. In the event that the Parties become aware of a Reinsured Contract that is subject to the foregoing restrictions, the Reinsurer shall pay to the Ceding Company in cash an amount equal to the General Account Statutory Reserves associated with such Reinsured Contract as of the end of the calendar quarter prior to the Parties discovery thereof, to the extent permitted by Applicable Law.

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Section 3.1 Payments by the Parties. (a) Closing Date Payments. (i) On the Closing Date, the Ceding Company shall deliver to the Reinsurer a closing statement in the form of Schedule I (the Closing Statement). (ii) On the Closing Date, the Ceding Company shall initiate the transfer to the Trust Account on behalf of the Reinsurer of the Transferred Assets. (iii) On the Closing Date, the Ceding Company shall transfer to the Reinsurer cash equal to the net amount due the Ceding Company as set forth in Line Item 13 - Total Net Cash Settlement to/(from) RGA of the Closing Statement. (iv) The Ceding Company and the Reinsurer agree that the Closing Date IMR Amount shall be calculated by the Ceding Company and ceded to and held by the Reinsurer, and the Ceding Company shall have no obligation to maintain any net Interest Maintenance Reserve related to any IMR Amounts. If this Agreement is terminated in accordance with Section 9.3 or Section 9.4, then the Ceding Company shall maintain the remaining Unamortized IMR Amount, calculated from and after the Recapture Date. (v) Notwithstanding the provisions of clause (ii) above, the Parties agree that to the extent that it is not practical to transfer any one or more of the Transferred Assets to the Trust Account on the Closing Date, the Ceding Company shall transfer such assets to the Trust Account as soon as practical thereafter, and the Parties shall cooperate in good faith to cause the transfer of such Transferred Assets at the earliest practical time; provided, that the Reinsurer shall have no obligation to fund the Trust Account to the extent of any deficiency due to the Ceding Companys failure to transfer any one or more of the Transferred Assets to the Trust Account on the Closing Date pursuant to clause (ii) above until such time such Transferred Assets or cash equal to the Fair Market Value of such Transferred Assets as of the Effective Date are transferred by the Ceding Company to the Trust Account; provided, further, that all Transferred Assets required to be transferred to the Trust Account pursuant to clause (ii) above (or cash in an amount equal to the Fair Market Value of such Transferred Assets as of the Effective Date) must be transferred to the Trust Account no later than the fifth (5th) Business Day after the Closing Date. (vi) If more than ten percent (10%) of the aggregate Fair Market Value of the Transferred Assets required to be transferred on the Closing Date in accordance with clause (ii) above is transferred to the Trust Account on any date following the second (2nd) Business Day after the Closing Date (any such assets, the Delayed Settlement Assets) and the Ceding Company does not transfer cash in an amount of such excess by such date, then the Parties shall work in good faith to adjust the Ceding Commission applicable to any such Delayed Settlement Assets consistent with PPA Items 2(b) and PPA Item 2(d) as set forth in the Closing Statement, reflecting an adjustment for the period from the Closing Date through the date of settlement of such asset.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document (b) Roll-Forward Accounting. Cash flows arising out of the Reinsured Contracts during the initial Accounting Period shall be calculated and settled between the Parties in accordance with Section 3.3.

Section 3.2 Additional Consideration. (a) As additional consideration for the Reinsurer entering into this Agreement, but subject to the Net Settlement contemplated by Section 3.3 and the Ceding Companys rights of offset and recoupment under Section 3.6, the Reinsurer shall be entitled to one hundred percent (100%) of the sum of: (i) all of the Premiums due and received by the Ceding Company after the Effective Date attributable to the Reinsured Contracts; (ii) all of the Separate Account Revenue received by the Ceding Company due and received after the Effective Date; and (iii) without duplication of the amounts set forth in clause (ii) of this Section 3.2, all amounts that are transferred from the Separate Account to the general account of the Ceding Company in respect of the Variable Annuity Reinsured Contracts after the Effective Date. (b) The Parties acknowledge and agree that the Reinsurer hereby assumes the financial risk of any uncollected or uncollectible Premiums.

Section 3.3 Net Settlement. (a) During the term of this Agreement and with respect to the final Accounting Period, a settlement amount between the Ceding Company and the Reinsurer as of the last day of each Accounting Period (the Net Settlement) shall be calculated by the Ceding Company in accordance with clause (b) below, and a statement setting forth details of such calculation (the Settlement Statement) in the form as set forth in Schedule C shall be delivered by the Ceding Company to the Reinsurer within thirty (30) calendar days following the end of each Accounting Period. If the amount of the Net Settlement for an Accounting Period is positive, at the time it delivers the Settlement Statement for such Accounting Period to the Reinsurer, the Ceding Company shall pay such amount in cash to the Reinsurer. If the amount of the Net Settlement for an Accounting Period is negative, the Reinsurer shall pay the absolute value of such amount in cash to the Ceding Company within fifteen (15) Business Days of its receipt of the Settlement Statement for such Accounting Period. (b) The Net Settlement with respect to any Accounting Period for the reinsurance covered hereunder is equal to the following: (i) the Premiums actually received by the Ceding Company during such Accounting Period; plus (ii) the Separate Account Revenue actually received by the Ceding Company during such Accounting Period; plus

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document (iii) the amount of any transfers described in Section 3.2(a)(iii) for such Accounting Period; minus (iv) the amount of any transfers from the general account of the Ceding Company to the Separate Account in respect of the Variable Annuity Reinsured Contracts; minus (v) the General Account Liabilities paid by the Ceding Company during such Accounting Period; minus (vi) the Expense Allowances.

Section 3.4 Errors. In the event that either Party determines that any of the amounts used in the calculation of the Net Settlement for any Accounting Period were incorrect, both Parties shall promptly do all things reasonably necessary to restore them to the positions they would have occupied had the error not occurred. If it is not possible to restore each Party to the position it would have occupied but for the error, the Parties shall endeavor in good faith to promptly resolve the situation in a manner that is fair and reasonable and most closely approximates the intent of the Parties as evidenced by this Agreement.

Section 3.5 Delayed Payments. If there is a delayed settlement of any payment due hereunder, interest shall accrue on such overdue payment at the Interest Rate until settlement is made. For purposes of this Section 3.5 a payment shall be considered overdue, and such interest shall begin to accrue, on the day immediately following the date such payment is due. Notwithstanding the foregoing, payments are due hereunder on the specified due date and the failure to make payments on such due date shall constitute a breach of this Agreement by the debtor-party.

Section 3.6 Offset. Any undisputed debits or credits incurred in favor of or against either the Ceding Company or the Reinsurer under or with respect to this Agreement are deemed mutual debits or credits and may be set off, and only the net balance shall be allowed or paid, regardless of any insolvency, rehabilitation, conservatorship or comparable proceeding by or against the Ceding Company or the Reinsurer. Such right shall apply to the full extent permitted under the Applicable Laws of the state of domicile of the insolvent Party. Notwithstanding anything to the contrary in this Agreement, each Party acknowledges and agrees that it shall have no right hereunder or pursuant to Applicable Law to offset any amounts due or owing (or to become due or owing) to the other Party under this Agreement against any amounts due or owing by such other Party or any of its Affiliates under the Trust Agreement or any other agreement, contract or understanding.

Section 3.7 Administration. (a) The Ceding Company shall provide all required, necessary and appropriate administrative and related services with respect to the Reinsured Contracts and the Separate Account, including without limitation, the billing and collection of any Premiums, claims management and the maintenance of appropriate Books and Records (collectively, the Services). The Ceding Company agrees to perform the Services (i) with the skill, diligence and expertise that would reasonably be expected from experienced and qualified personnel performing such duties in like circumstances, (ii) in compliance with the terms of the Reinsured Contracts in all material respects and (iii) with the same priority as it accords its own operations with respect to business not subject to this Agreement.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document (b) The Reinsurer agrees that the Ceding Company may subcontract any or all of the Services; provided, however, that the Ceding Company shall not change the subcontractor of any Services material to the administration of the Reinsured Contracts without the Reinsurers prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed); and provided, further, that no subcontracting shall relieve the Ceding Company from any of its obligations or liabilities hereunder, and the Ceding Company shall remain responsible for all obligations or liabilities of such subcontractor with respect to the provision of such Services as if provided by the Ceding Company. (c) In consideration for the administration to be provided by the Ceding Company and as compensation for certain obligations with respect to the Reinsured Contracts, on each Accounting Period the Reinsurer shall pay the Ceding Company the Expense Allowance.

Section 3.8 Books and Records Access. During the term of this Agreement, upon ten (10) Business Days prior written notice from the Reinsurer or its Representatives reasonably acceptable to the Ceding Company, from time to time, the Ceding Company shall provide to the Reinsurer and such Representatives reasonable access during normal business hours to the Books and Records under the control of the Ceding Company or its Affiliates; provided, that such access shall not unreasonably interfere with the conduct of the business operations of the Ceding Company or its Affiliates and takes place for a reasonable number of calendar days.

Section 3.9 Certain Reports from the Reinsurer. (a) The Reinsurer shall comply with the RBC Certification Requirements set forth in Schedule J. (b) The Reinsurer shall provide written notice to the Ceding Company of the occurrence of any RBC Ratio Event, Recapture Triggering Event (other than a Recapture Trigger Event that has occurred due to an event described in paragraph (f) of the definition of Recapture Trigger Event) or FMV Triggering Event within five (5) Business Days after the Reinsurer obtains knowledge of its occurrence. In addition, the Reinsurer shall reasonably cooperate with the Ceding Company and promptly respond to the Ceding Companys reasonable inquiries from time to time concerning the determination of whether an RBC Ratio Event, a Recapture Triggering Event (other than a Recapture Trigger Event that has occurred due to an event described in paragraph (f) of the definition of Recapture Trigger Event) or an FMV Triggering Event has occurred. (c) The Reinsurer shall provide the Ceding Company with its annual and quarterly NAIC statement blanks and a copy of its annual audited NAIC statement blanks along with the audit report thereon.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Section 3.10 Non-Guaranteed Elements. (a) General. From and after the date hereof, the Ceding Company shall continue to set all Non-Guaranteed Elements under the Reinsured Contracts. The Ceding Company shall consult with the Reinsurer periodically on the setting of such Non-Guaranteed Elements prior to making any material changes thereto and will take the recommendation of the Reinsurer into account in good faith. The Ceding Company shall set all Non-Guaranteed Elements under the Reinsured Contracts from and after the Effective Date, taking into account the recommendations of the Reinsurer with respect thereto, which the Ceding Company shall only reject in good faith and on a reasonable basis that such recommendations fail to comport with Applicable Law or the terms of any Reinsured Contract. (b) Crediting Rates. The Ceding Company and the Reinsurer understand and agree that the procedure for establishing crediting rates with respect to the Reinsured Contracts shall be as set forth in Schedule M. Notwithstanding the preceding, except as required to comply with Applicable Laws, in the event that the Ceding Company sets any crediting rates in regard to the Reinsured Contracts in an amount greater than the amount set forth in the preceding sentence without the Reinsurers prior written consent, an amount equal to such excess shall be payable to the Reinsurer and reported by the Ceding Company for each Accounting Period to the Reinsurer.

Section 3.11 Policy Exchanges, Replacements or Surrenders. Unless otherwise agreed in writing by the Parties to this Agreement, or required under Applicable Law, neither Party shall, and shall not assist or support its Affiliates in any efforts to, institute, promote, support or encourage any exchange, replacement or surrender program with respect to the Reinsured Contracts through a program of internal replacement. The term program of internal replacement shall mean any program sponsored or supported by a Party or any of its Affiliates offered to the holders of the Reinsured Contracts, or any portion thereof, in which Reinsured Contracts may be exchanged for any other policy or annuity products written by such Party or any of its Affiliates. The offering by a Party or its Affiliates to new clients and to Contractholders of an insurance, annuity or investment product that offers then-market terms that are more favorable to the Contractholders in the normal course of the Partys business and consistent with its past practices shall not be considered to be an exchange program in violation of this obligation, provided, that such offering by the Party or its Affiliates is generally offered to the public and does not target, in a directed, programmatic or systematic manner, the Contractholders for replacement.

Section 3.12 Contested Claims. The Ceding Company shall advise the Reinsurer of its intention to contest, compromise or litigate any claim involving any Reinsured Contract, and the Reinsurer may elect to participate in any such contest by giving notice to the Ceding Company thereof within thirty (30) calendar days of its receipt of notice describing such claim from the Ceding Company; provided, however, that the Ceding Company shall not be obligated to provide such notice in the case of routine administration of claims. If the Reinsurer elects to participate in such contest, the Reinsurer shall pay its share of the expenses of such contest, and shall share in any reduction of the Ceding Companys liability for such contested claim. In addition, if after the Ceding Company has presented the Reinsurer with a course of action it intends to pursue with respect to such contest and the Reinsurer elects to participate in such contest and does not expressly object in writing to such course of action that gave rise to an Extra-Contractual Obligation, then the Reinsurer shall be liable for such Extra-Contractual Obligation that arises from such contest (such Extra-Contractual Obligations for which Reinsurer is liable, the Reinsurer Extra- Contractual Obligations). If the Reinsurer does not elect to participate in such contest, it shall discharge its liability with respect to such contested claim by payment to the Ceding Company of the full amount of its liability on the Reinsured Contract with respect to such claim.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Section 3.13 Current Practices. The Ceding Company shall not materially change, alter or otherwise compromise, and shall not allow any subcontractor to materially change, alter or otherwise compromise, its claims paying or administrative practices with respect to the Reinsured Contracts without the prior written consent of the Reinsurer, which consent shall not be unreasonably withheld, conditioned, or delayed. Notwithstanding the foregoing, nothing set forth in this Section 3.13 shall prevent the Ceding Company from adopting different systems or from making changes to its claims paying or administrative practices that apply to both the administration of the Reinsured Contracts and other business of the Ceding Company not subject to this Agreement, so long as such changes do not disproportionately and adversely impact, in any material respect, the Reinsured Contracts.

ARTICLE IV LICENSES; RESERVE CREDIT; SECURITY

Section 4.1 Licenses; Reserve Credit. (a) At all times during the term of this Agreement, the Reinsurer shall use commercially reasonable efforts to (i) hold and maintain its license or accreditation in the Ceding Company Domiciliary State, and (ii) take all other actions so that the Ceding Company may receive Reserve Credit. Should the Reinsurer fail to hold and maintain all licenses and authorizations required under Applicable Law to enable the Ceding Company to receive Reserve Credit, the Reinsurer shall, at its own expense, take all steps (including amending this Agreement or the Trust Agreement or entering into other agreements or posting of letters of credit, establishing a credit for reinsurance trust or other acceptable security in accordance with the terms hereof or entering into a funds held arrangement with the Ceding Company or novating this Agreement to another reinsurer, which may be an Affiliate of the Reinsurer or a third party, subject to the Ceding Companys consent, not to be unreasonably withheld, as promptly as possible, not to exceed twenty (20) days following the occurrence of such event as are necessary so as to permit the Ceding Company to obtain Reserve Credit, to the extent that actions taken pursuant to Section 4.2 and Section 4.7 do not result in full Reserve Credit on or prior to such date; provided, that, if such failure of the Reinsurer to hold and maintain all licenses and authorizations Required under Applicable Law to enable the Ceding Company to receive Reserve Credit is due to a Change in Applicable Law, then the Reinsurer shall use its commercially reasonable best efforts to enable the Ceding Company to obtain Reserve Credit, in accordance with this Section 4.1(a), and in such event, the Ceding Company and the Reinsurer shall share equally in any incremental costs of complying with such Change in Applicable Law. The Reinsurer shall promptly notify the Ceding Company of any event or change in its licensing or accreditation in the Ceding Company Domiciliary State or other condition that would be reasonably likely to result or has resulted in any loss of, or impairment to, Reserve Credit. Furthermore, upon any loss of, or impairment to, Reserve Credit, the Ceding Company and the Reinsurer shall cooperate in good faith to promptly amend this Agreement or the Trust Agreement or enter into other agreements, or post letters of credit, establish a credit for reinsurance trust or other acceptable security in accordance with the terms hereof, enter into a funds held arrangement with the Ceding Company, novate this Agreement to another reinsurer, which may be an Affiliate of the Reinsurer or a third party, subject to the Ceding Companys consent, not to be unreasonably withheld, or execute additional documents as reasonably needed to comply with the credit for reinsurance laws and regulations and/or the requirements of the applicable Governmental Authority to ensure the Ceding Company obtains Reserve Credit.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document (b) Notwithstanding anything contained in this Section 4.1 to the contrary, in the event that (i) there is a repeal of or amendment or other modification to the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub.L. 111-203, H.R. 3173) that would authorize a Governmental Authority in any jurisdiction of the United States where the Ceding Company is licensed to transact business to apply the applicable rules for credit for reinsurance in such jurisdiction to the Ceding Company, and (ii) the Ceding Company reasonably determines that it is obligated under Applicable Law to comply with such rules in order to receive statutory financial statement credit in any such jurisdiction, then (A) Section 4.1(a) hereof shall automatically be deemed to be amended without any action by the Parties to require that the Reinsurer shall comply with the provisions of Section 4.1(a) so as to enable the Ceding Company to obtain full and complete statutory financial statement credit for the reinsurance provided by this Agreement in any such jurisdiction in addition to, and to the same extent as, the Ceding Company Domiciliary State and (B) the definition of Reserve Credit shall be amended to refer to all such jurisdictions; provided, however, that the Reinsurer shall not be required to modify, amend or alter this Agreement or any other Transaction Documents, or enter into any arrangements or otherwise take any steps that would materially adversely affect the economic benefits the Reinsurer expects to derive from this Agreement and the other Transaction Documents, and the transactions contemplated hereunder and thereunder.

Section 4.2 Security. (a) (i) On the date hereof, the Reinsurer, as grantor, shall establish and thereafter shall maintain, at its sole cost and expense, the Trust Account with the Trustee, naming the Ceding Company as sole beneficiary thereof to secure the Reinsurers obligations hereunder. The Reinsurer shall maintain the Trust Account in accordance with the terms of this Agreement and the Trust Agreement. (ii) Upon the occurrence and continuation of an FMV Triggering Event and notice from the Ceding Company to the Trustee in accordance with the terms of the Trust Agreement, the Reserve Credit Trust Provisions shall become effective without any further action on the part of the Parties or the Trustee for so long as such FMV Triggering Event is continuing. (iii) The Ceding Company acknowledges and agrees that any notice provided by the Ceding Company to the Trustee under Section 4.2(a)(ii) shall be true and correct, and shall serve as a certification to both the Trustee and the Reinsurer that an FMV Triggering Event has occurred and is continuing. In the event that it is determined that an FMV Triggering Event has not occurred, the Ceding Company shall rescind any such notice to the Trustee in accordance with the terms of the Trust Agreement. (iv) Subject to Section 4.8, in the event that the Reinsurer has cured the event or condition giving rise to an FMV Triggering Event, the Ceding Company shall rescind any notice provided by the Ceding Company to the Trustee under Section 4.2(a)(ii) in accordance with the terms of the Trust Agreement.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document (b) During the term of the Trust Agreement, the Reinsurer shall not, and shall direct that the Trustee shall not, grant or cause or permit to be created or granted in favor of any third person any security interest whatsoever in any of the assets in the Trust Account or in the residual interest therein.

Section 4.3 Trust Account and Settlements. The Trustee shall hold assets in the Trust Account pursuant to the terms of the Trust Agreement. All settlements of account under this Agreement between the Ceding Company and the Reinsurer shall be made in United States dollars in cash or its equivalent.

Section 4.4 Authorized Investments. (a) The assets that may be held in the Trust Account shall consist only of Investment Assets (i) that are not issued by Reinsurer, Ceding Company, or an Affiliate of either Party, and (ii) that comply with the Investment Guidelines (the Investment Assets meeting the requirements of this sentence being the Authorized Investments). Notwithstanding the foregoing, upon the occurrence and continuance of an RBC Ratio Event for one (1) or more calendar quarters following the calendar quarter in which the Event Reference Date occurs, or upon the occurrence and continuation of an FMV Triggering Event that has occurred due to an event described in paragraph (b) of the definition of FMV Triggering Event, the Reinsurer may deposit into the Trust Account one (1) or more Letters of Credit and may continue to maintain such Letters of Credit in the Trust Account for a period of one (1) calendar year, after which time, if such Letters of Credit have not been replaced with Authorized Investments in the Trust Account, the Ceding Company may give instructions to the Trustee to draw the full amount of the Letters of Credit and deposit such proceeds into the Trust Account; provided, however, that at no time may the aggregate face amount of all Letters of Credit in the Trust Account exceed the LOC Permitted Amount. (b) Following the date hereof, the Reinsurer shall provide to the Ceding Company and the Trustee a monthly report no later than twenty (20) calendar days following the end of such calendar month listing each asset in the Trust Account and the Statutory Book Value and Fair Market Value of each such asset and the face amount of any Letters of Credit as of the end of the relevant calendar month and certify that each asset in the Trust Account is an Authorized Investment. For the purpose of valuing assets in the Trust Account, the Parties agree that the definition of Fair Market Value set forth herein shall apply to the determination of Fair Market Value under the Trust Agreement.

Section 4.5 Deposit of Assets. Prior to depositing assets in the Trust Account, the Reinsurer shall execute assignments or endorsements in blank, or transfer legal title to the Trustee of all shares, obligations or any other assets requiring assignments, in order that the Ceding Company, or the Trustee upon the direction of the Ceding Company, may whenever necessary negotiate these assets without the consent or signature from the Reinsurer or any other entity.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Section 4.6 Withdrawal of Assets from the Trust Account. (a) So long as no FMV Triggering Event has occurred and is continuing, the Ceding Company and Reinsurer agree that the assets maintained in the Trust Account and any Letters of Credit may be withdrawn by the Ceding Company, or any successor by operation of law of the Ceding Company including, without limitation, any liquidator, rehabilitator, receiver or conservator of the Ceding Company, without diminution because of insolvency on the part of the Ceding Company or Reinsurer (i) to pay or reimburse the Ceding Company for any undisputed amounts due from the Reinsurer to the Ceding Company under this Agreement and not yet recovered from the Reinsurer or (ii) to pay the Ceding Company the Terminal Settlement as contemplated in Section 9.5(a). (b) The Ceding Company and Reinsurer agree that during the continuation of an FMV Triggering Event the assets maintained in the Trust Account and any Letters of Credit may be withdrawn by the Ceding Company, or any successor by operation of law of the Ceding Company including, without limitation, any liquidator, rehabilitator, receiver or conservator of the Ceding Company, without diminution because of insolvency on the part of the Ceding Company or the Reinsurer, at any time without notice or consent from the Reinsurer but only for one or more of the following purposes: (i) to pay or reimburse the Ceding Company for the Reinsurers share of premiums returned to the owners of the Reinsured Contracts reinsured hereunder because of cancellations of the Reinsured Contracts; (ii) to pay or reimburse the Ceding Company for the Reinsurers share of surrenders, benefits or losses payable by the Ceding Company pursuant to the provisions of the Reinsured Contracts reinsured hereunder; or (iii) to pay or reimburse the Ceding Company for other amounts due to the Ceding Company hereunder or necessary to secure the credit or reduction from liability for reinsurance taken by the Ceding Company for the liabilities ceded hereunder. (c) The Ceding Company shall return to the Trust Account, within five (5) Business Days, assets withdrawn in excess of the actual amounts required under Section 4.6(a) or (b). Any such excess assets withdrawn shall at all times be held by the Ceding Company (or any successor by operation of law of the Ceding Company, including any liquidator, rehabilitator, receiver or conservator of the Ceding Company) in trust for the benefit of the Reinsurer and be maintained in a segregated account, separate and apart from any assets of the Ceding Company, for the sole purpose of funding the payments and reimbursements contemplated under Section 4.6(a) or (b). The Ceding Company shall pay to the Reinsurer interest on such excess withdrawn amounts under Section 4.6(a) or (b) at the average of the daily prime rate (expressed as a rate per annum) published in The Wall Street Journal for each of the calendar days such assets are held by the Ceding Company.

Section 4.7 Adjustment of Security and Withdrawals. (a) The amount of security required to be provided by the Reinsurer hereunder shall be adjusted following the end of each calendar quarter based on (x) the Required Amount as of the end of such calendar quarter calculated by the Ceding Company and furnished to the Reinsurer in a report no later than twenty (20) calendar days following the end of such calendar quarter (the Security Funding Reporting Date) and (y) the aggregate Statutory Book Value or

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Fair Market Value, as applicable, of Authorized Investments and the face amount of any Letters of Credit as of the end of such calendar quarter as furnished by the Reinsurer to the Ceding Company in the report for the final month in such calendar quarter in accordance with Section 4.4(b). The amount of security held in the Trust Account shall be adjusted as follows: (i) So long as no RBC Ratio Event has occurred and is continuing for one (1) or more calendar quarters following the calendar quarter in which the Event Reference Date occurs and no FMV Triggering Event has occurred and is continuing, if the aggregate Statutory Book Value of the Authorized Investments held in the Trust Account as of the end of such calendar quarter is less than the Required Amount, calculated based on the most recent reports delivered by the Ceding Company and the Reinsurer under this Section 4.7, then Reinsurer shall, no later than fifteen (15) Business Days following the Security Funding Reporting Date, transfer additional Authorized Investments to the Trust Account so that the aggregate Statutory Book Value of the Authorized Investments held in the Trust Account is not less than the Required Amount. (ii) In the event that an RBC Ratio Event has occurred and has continued for one (1) or more calendar quarters following the calendar quarter in which the Event Reference Date occurs, during the continuation of such RBC Ratio Event: (A) If (1) the aggregate Statutory Book Value of the Authorized Investments held in the Trust Account as of the end of such calendar quarter is less than the Required Amount, or (2) (x) the aggregate Fair Market Value of the Authorized Investments held in the Trust Account as of the end of such calendar quarter, plus (y) the face amount of any Letters of Credit in the Trust Account (up to the LOC Permitted Amount) is less than ninety percent (90%) of the General Account Statutory Reserves, in each case of (1) and (2) calculated based on the most recent reports delivered by the Ceding Company and the Reinsurer under this Section 4.7, then the Reinsurer shall, no later than fifteen (15) Business Days following the Security Funding Reporting Date, (aa) transfer additional Authorized Investments to the Trust Account (up to the LOC Permitted Amount) so that the aggregate Statutory Book Value of the Authorized Investments held in the Trust Account is not less than the Required Amount and (bb) transfer additional Authorized Investment and/or increase the face amount of any Letters of Credit held in the Trust Account so that the aggregate Fair Market Value of the Authorized Investments plus the face amount of any Letters of Credit held in the Trust Account is not less than ninety percent (90%) of the General Account Statutory Reserves; provided, however, that solely in satisfying the Reinsurers obligation to hold in the Trust Account Authorized Investments and Letters of

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Credit having an aggregate Fair Market Value at least equal to ninety percent (90%) of the General Account Statutory Reserves, the Reinsurer shall not be required to provide Letters of Credit or deposit into the Trust Account Authorized Investments having an aggregate Fair Market Value of more than (I) fifty million dollars ($50,000,000) in the aggregate during the first calendar quarter of such requirement or (II) one hundred million dollars ($100,000,000) in the aggregate during each subsequent calendar quarter during which the RBC Ratio Event is continuing. (B) In the event that the Reinsurer has cured the event or condition giving rise to an RBC Ratio Event, the provisions of this Section 4.7(a)(ii) shall cease to be applicable and the provisions of Section 4.7(a)(i) shall govern. (iii) During the continuation of an FMV Triggering Event, if the aggregate Fair Market Value of the Authorized Investments held in the Trust Account as of the end of such calendar quarter is less than the Required Amount, calculated based on the most recent report delivered by the Reinsurer under this Section 4.7, then the Reinsurer shall, no later than fifteen (15) Business Days following the Security Funding Reporting Date, transfer additional Authorized Investments and, subject to Applicable Law, Letters of Credit to the Trust Account so that the aggregate Fair Market Value of the Authorized Investments held in the Trust Account plus the face amount of any Letters of Credit held in the Trust Account (up to the LOC Permitted Amount) is not less than the Required Amount. (b) If the aggregate Statutory Book Value or, during the continuation of an FMV Triggering Event the Fair Market Value, of the Authorized Investments held in the Trust Account as of the end of any calendar quarter exceeds the Required Amount, then the Reinsurer shall have the right, in accordance with the terms of the Trust Agreement, to withdraw such excess; provided, that, (i) if no FMV Triggering Event has occurred and is continuing, for purposes of this Section 4.7(b), then the Reinsurer shall not be permitted to withdraw assets with an aggregate Fair Market Value in excess of twenty million dollars ($20,000,000) for such calendar quarter without the Ceding Companys prior written consent as to the amount of such withdrawal and the composition of such assets, such consent not to be unreasonably withheld, conditioned or delayed, (ii) the Authorized Investments held in the Trust Account following such withdrawal will continue to comply with the Investment Guidelines or, in the event that such Authorized Investments are out of compliance with the Investment Guidelines immediately prior to such withdrawal, such withdrawal will not result in any further deviation from the Investment Guidelines and (iii) in the event that an RBC Ratio Event has occurred and is continuing for one or more calendar quarters, the aggregate Fair Market Value of the Authorized Investments plus the face amount of any Letters of Credit held in the Trust Account following such withdrawal will not be less than ninety percent (90%) of the General Account Statutory Reserves.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document (c) The report required to be delivered by the Reinsurer as described in Section 4.4 shall include a listing of each asset in the Trust Account and the Statutory Book Value and Fair Market Value of each such asset as of the end of the relevant calendar month and indicate if any such asset is not an Authorized Investment. In the event that (i) the Reinsurer disagrees with the calculation of the Required Amount, or (ii) the Ceding Company disagrees with the calculation of the Statutory Book Value or Fair Market Value of any Authorized Investment or whether any asset is an Authorized Investment as set forth in such report, the disagreeing Party may deliver written notice to the other Party of such disagreement and the Parties shall attempt in good faith to resolve such disagreement. Any resolution agreed to in writing by the Parties shall be final and binding upon the Parties. If the Parties are unable to resolve such disagreement within ten (10) Business Days after delivery of written notice of any such disagreement, the Parties shall jointly request the Transaction Consultant to determine the disputed matter. The Transaction Consultants determination of the disputed matter shall be final and binding upon the Parties. Each Party shall pay one-half (1/2) of the Transaction Consultants fees, costs and expenses associated with the Transaction Consultants determination. After a final and binding resolution of any dispute described in this Section 4.7(c) is reached, the Parties agree to make any necessary adjustments under Section 4.7(a) so that the aggregate Statutory Book Value or Fair Market Value, as applicable, of the Authorized Investments held in the Trust Account is not less than the amount required pursuant to Section 4.7(a)(i), (ii) or (iii), as applicable. (d) The Reinsurer shall promptly notify the Ceding Company of any change in the methodologies used in determining the Fair Market Value of the Authorized Investments held in the Trust Account.

Section 4.8 Continuation of a FMV Triggering Event. Upon the occurrence of an FMV Triggering Event, such FMV Triggering Event shall be deemed to be continuing unless the event or events that resulted in such occurrence have been cured and no other FMV Triggering Event has occurred during a period of six (6) months commencing with the date of such cure; provided, that if a subsequent FMV Triggering Event occurs (whether within such six (6) month period or otherwise), such FMV Triggering Event shall not be curable and shall be deemed to be continuing for the remaining duration of this Agreement.

ARTICLE V REPRESENTATIONS AND WARRANTIES

Section 5.1 Closing Statement and Ceding Company Data Representations. (a) The Ceding Company acknowledges that, at the Reinsurers request, it has provided the Reinsurer with the Closing Statement described in Section 3.1(a) on the Closing Date. The Ceding Company represents that all the factual information contained in the Closing Statement is (i) derived from the Books and Records, and (ii) complete and accurate. The Ceding Company further represents that it is not aware of any omissions, errors, changes or discrepancies that would materially affect the Closing Statement. (b) The Ceding Company acknowledges that, at the Reinsurers request, it has provided the Reinsurer with the Ceding Company Data described in Schedule H prior to the Closing Date. The Ceding Company represents that all the factual information (i) contained in the

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Ceding Company Data is, and (ii) provided by the Ceding Company and its Affiliates in writing to Willis Towers Watson or Willis Re Inc. with respect to the Reinsured Contracts for their use in connection with the preparation of the Ceding Company Data was, as of the date such information was provided to Willis Towers Watson or Willis Re Inc., (A) derived from the Books and Records and (B) complete and accurate. The Ceding Company further represents that it is not aware of any omissions, errors, changes or discrepancies which would materially affect the Ceding Company Data. The Reinsurer has relied on the Ceding Company Data and the representations of the Ceding Company set forth in this Agreement in entering into, and consummating the transactions described in, this Agreement. (c) Notwithstanding anything in this Agreement to the contrary, the Ceding Company does not guarantee any projected results included in the Ceding Company Data, or make any representation or warranty (i) with respect to any estimates, projections, predications, forecasts, assumptions, methodologies and judgments in the Ceding Company Data or the assumptions on the basis of which such information or data was prepared (including, without limitation, as to future mortality, policyholder behavior, expense, investment experience and other actuarial factors with respect to the Reinsured Contracts or its associated assets or liabilities) or (ii) to the effect that any projected profits set forth in the Ceding Company Data shall be realized.

Section 5.2 Ceding Company Closing Date Representations. Except as set forth in Schedule K, the Ceding Company hereby makes the following representations to the Reinsurer as of the Closing Date: (a) Organization, Standing and Authority. The Ceding Company (i) is duly organized, validly existing and in good standing under the laws of the State of Washington; (ii) has all requisite corporate power and authority to carry on its business as it is now being conducted and to own, lease and operate its properties and assets; and (iii) is duly qualified or licensed to do business as a foreign company in good standing in each jurisdiction in which the conduct of its business or the ownership, leasing or operation of its properties or assets or the nature of the business conducted by it makes such qualification necessary; except, in the event of clauses (ii) and (iii) where the failure to have such power and authority or to be so qualified would not, individually or in the aggregate, reasonably be expected to have a Business Material Adverse Effect. (b) Authorization. The Ceding Company has all requisite corporate power and authority to execute and deliver, and to perform its obligations under, each of the Transaction Documents. The execution and delivery of each of the Transaction Documents by the Ceding Company, and the performance by the Ceding Company of its obligations under such agreements, have been duly authorized by the Ceding Companys board of directors and by all other necessary corporate action on the part of the Ceding Company. Each of the Transaction Documents have been duly executed and delivered by the Ceding Company and, subject to the due execution and delivery by the other parties to such agreements, each of the Transaction Documents shall, upon due execution and delivery, be valid and binding obligations of the Ceding Company enforceable against the Ceding Company in accordance with their respective terms, subject to:

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document (i) bankruptcy, insolvency, reorganization, moratorium and other similar laws now or hereafter in effect relating to or affecting the rights of creditors of insurance companies or creditors rights generally; and (ii) general principles of equity (regardless of whether considered in a proceeding at law or in equity). Clauses (i) and (ii) are referred to herein as the Enforceability Exceptions. (c) Actions and Proceedings. There are no: (i) outstanding orders, decrees, injunctions or judgments by or with any arbitrator or Governmental Authority (Orders) applicable to the Ceding Company with respect to the Reinsured Contracts; or (ii) actions relating in whole or in part to the Reinsured Contracts which are pending or, to the knowledge of the Ceding Company, threatened in which the Ceding Company is, or in the case of threatened would be, a named party which, in either case, would, individually or in the aggregate, reasonably be expected to have a Business Material Adverse Effect. (d) No Conflict or Violation. The execution, delivery and performance by the Ceding Company of the Transaction Documents, and the consummation of the transactions contemplated hereby and thereby in accordance with the respective terms and conditions hereof and thereof shall not: (i) violate or conflict with or result in a breach or default under any provision of the certificate of incorporation, bylaws or other organizational documents of the Ceding Company; (ii) violate, conflict with or result in the breach of any of the terms of, result in any modification of the effect of, otherwise give any other contracting party the right to terminate, or constitute (or with notice or lapse of time or both, constitute) a default under, any contract with respect to the Reinsured Contracts to which the Ceding Company is a party; (iii) violate or conflict with any Order, or any agreement with, or condition imposed by, any Governmental Authority binding upon the Ceding Company in connection with the Reinsured Contracts or the Transferred Assets; (iv) violate or conflict with any Applicable Law; or (v) result in a breach or violation of any of the terms or conditions of, constitute a default under, or otherwise cause an impairment or revocation of, any Permit related to the Reinsured Contracts; except, in each case of Subsections (i) through (v) of this Section 5.2(d), as would not, individually or in the aggregate, reasonably be expected to have a Business Material Adverse Effect.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document (e) Governmental Consents. The execution, delivery and performance by the Ceding Company of this Agreement, and by the Ceding Company of the other Transaction Documents, and the consummation of the transactions contemplated hereby and thereby in accordance with the respective terms hereof and thereof, do not require the Ceding Company to obtain any consent or approval from, or make any filing with, or give any notice to, any Governmental Authority prior to the execution of this Agreement or the other Transaction Documents. (f) Compliance with Laws. The Reinsured Contracts are in compliance with Applicable Law in all respects and there is no investigation or proceeding pending, or, to the knowledge of the Ceding Company, threatened by any Governmental Authority, against the Ceding Company or any Affiliate of the Ceding Company with respect to the Reinsured Contracts that alleges any violation of Applicable Law, except, in each case, other than any such item that would not, individually or in the aggregate, reasonably be expected to have a Business Material Adverse Effect, provided, however, that the Ceding Company makes no representation or warranty in this Section 5.2(f) with respect to matters that are addressed in Section 5.2(c), (g) or (h). (g) Permits. The Ceding Company (i) held at the time the Reinsured Contracts were issued, all insurance Permits required under Applicable Law in order to issue the Reinsured Contracts and holds all such Permits required to conduct the business in connection with the Reinsured Contracts as currently conducted and (ii) has maintained all other Permits that are material to the Reinsured Contracts, and all such Permits are valid and in full force and effect. The Ceding Company has not received any written notice or communication from any Governmental Authority regarding any potential material violation of, or failure to comply with, the terms of any such Permits. The Ceding Company is not an investment company subject to registration under the Investment Company Act. (h) Insurance Matters. (i) (A) The Ceding Company has filed all reports, statements, registrations, filings or submissions that relate, in whole or in substantial part to the Reinsured Contracts, and that were required to be filed by it with any Governmental Authority and (B) all such reports, statements, documents, registrations, filings or submissions were true, complete and accurate when filed in all respects, in each case of (A) and (B) except as would not reasonably be expected, individually or in the aggregate, to have a Business Material Adverse Effect. (ii) To the knowledge of the Ceding Company, the Reinsured Contracts are, and have been, to the extent required under Applicable Law, issued on forms approved by the applicable insurance regulatory authority or filed and not objected to by such insurance regulatory authority within the period provided for objection, in each case except as would not reasonably be expected, individually or in the aggregate, to have a Business Material Adverse Effect. No material deficiencies have been asserted by any Governmental Authority with respect to any such filings which have not been cured or otherwise resolved.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document (i) Separate Account. (i) The Separate Account is duly and validly established and maintained under the laws of the State of Washington; (ii) the portion of the assets of the Separate Account equal to the reserves and other contract Liabilities of such Separate Account is not chargeable with Liabilities arising out of any other business the Ceding Company may conduct or may have conducted; (iii) the Separate Account has been operated and maintained in compliance with all Applicable Law in all material respects; (iv) the Separate Account is duly registered with the Securities and Exchange Commission as an investment company under the Investment Company Act, and such registration is in full force and effect; (v) the Reinsured Contracts under which Separate Account assets are held were sold pursuant to an effective registration statement that is currently in effect to the extent necessary to allow the Ceding Company to receive contributions under such contracts; (vi) each prospectus, statement of additional information or other disclosure document, as amended or supplemented, that was issued or sent to holders of the Ceding Company Reinsured Contracts as of their respective mailing dates or dates of use in each case related to the Separate Account, or registration statement, as amended or supplemented, related to the Separate Account (A) contains no untrue statement of material fact and did not omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances in which they were made, not misleading, and (B) complies in all material respects with Applicable Law; and (vii) no examinations, investigations, inspections or formal or informal inquiries, including periodic regulatory examinations, civil investigative demands or market conduct examinations, in each case that are targeted to the Separate Accounts affairs and condition are currently being conducted by any Governmental Authority, or have been conducted since April 1, 2015. (j) Other Reinsurance. The Ceding Company has not entered into any other reinsurance treaties where the Ceding Company is indemnified for any Reinsured Risks with respect to the Reinsured Contracts as of the Effective Date. Further, the Ceding Company agrees not to enter into any such other reinsurance treaties during the duration of this Agreement without the prior written consent of the Reinsurer. (k) Brokers and Finders. Except for Willis Re Inc. and Willis Towers Watson, no broker, investment banker, financial adviser or other person is entitled to any brokers, finders, financial advisers or other similar fee or commission in connection with the transactions contemplated by this Agreement based upon the arrangements made by or on behalf of the Ceding Company.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document (l) Transferred Assets. The Transferred Assets are not in default in the payment of principal, interest or dividends. The Ceding Company holds good, valid and marketable title to all such Transferred Assets, free and clear of all liens.

Section 5.3 Reinsurer Closing Date Representations. Except as set forth in Schedule L, the Reinsurer hereby makes the following representations to the Ceding Company as of the Closing Date: (a) Organization, Standing and Authority. The Reinsurer: (i) is duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation; (ii) has all requisite corporate power and authority to carry on its business as it is now being conducted and to own, lease and operate its properties and assets; and (iii) is duly qualified or licensed to do business as a foreign corporation in good standing in each jurisdiction in which the conduct of its business or the ownership, leasing or operation of its properties or assets or the nature of the business conducted by it makes such qualification necessary. (b) Authorization. The Reinsurer has all requisite corporate power and authority to execute and deliver, and to perform its obligations under, each of the Transaction Documents. The execution and delivery by the Reinsurer of each of the Transaction Documents, and the performance by the Reinsurer its obligations under such agreements, have been duly authorized by all necessary corporate action on the part of the Reinsurer. Each of the Transaction Documents have been duly executed and delivered by the Reinsurer and, subject to the due execution and delivery by the other parties to such agreements, each of the Transaction Documents shall, upon due execution and delivery, be valid and binding obligations of the Reinsurer, enforceable against the Reinsurer in accordance with their respective terms, subject to the Enforceability Exceptions. (c) Actions and Proceedings. There are no: (i) outstanding Orders applicable to the Reinsurer or its properties or assets that, individually or in the aggregate, would reasonably be expected to have a Reinsurer Material Adverse Effect; or (ii) actions pending or, to the knowledge of the Reinsurer, threatened against the Reinsurer, at law or in equity, or before or by any Governmental Authority or before any arbitrator of any kind that would, individually or in the aggregate, reasonably be expected to have a Reinsurer Material Adverse Effect. (d) No Conflict or Violation. The execution, delivery and performance by the Reinsurer of the Transaction Documents, and the consummation of the transactions contemplated hereby and thereby in accordance with the respective terms and conditions hereof and thereof shall not: (i) violate or conflict with or result in a breach or default under any provision of the certificate of incorporation, bylaws or other organizational documents of the Reinsurer;

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document (ii) violate, conflict with or result in the breach of any of the terms of, result in any modification of the effect of, otherwise give any other contracting Party the right to terminate, or constitute (or with notice or lapse of time or both, constitute) a default under, any contract to which the Reinsurer is a party or by or to which any of its properties may be bound or subject; (iii) violate or conflict with any Order, or any agreement with, or condition imposed by, any arbitrator or Governmental Authority binding upon the Reinsurer; (iv) violate or conflict with any Applicable Law; or (v) result in a breach or violation of any of the terms or conditions of, constitute a default under, or otherwise cause an impairment or revocation of, any Permit related to the Reinsurers business; except, in each case of Subsections (i) through (v) of this Section 5.3(d), as would not, individually or in the aggregate, reasonably be expected to have a Reinsurer Material Adverse Effect. (e) Governmental Consents. The execution, delivery and performance by the Reinsurer of this Agreement, and by the Reinsurer of the other Transaction Documents, and the consummation of the transactions contemplated hereby and thereby in accordance with the respective terms hereof and thereof, do not require the Reinsurer to obtain any consent or approval from, or make any filing with, or give any notice to, any Governmental Authority. (f) Brokers and Finders. No broker, investment banker, financial adviser or other person is entitled to any brokers, finders, financial advisers or other similar fee or commission in connection with the transactions contemplated by this Agreement based upon the arrangements made by or on behalf of the Reinsurer.

ARTICLE VI OVERSIGHTS; COOPERATION; CLAIMS

Section 6.1 Oversights. Inadvertent delays, oversights, errors or omissions made in connection with this Agreement or any transaction hereunder shall not relieve either Party from any liability that would have attached had such delay, oversight, error or omission not occurred. The Parties shall nevertheless cooperate in good faith to rectify such delay, oversight, error or omission as soon as possible after discovery so that both Parties shall be restored as closely as possible to the positions they would have occupied if no delay, oversight, error or omission had occurred, including complying with the provisions of Section 3.4.

Section 6.2 Cooperation. The Ceding Company and the Reinsurer shall cooperate with each other in order to accomplish the objectives of this Agreement by furnishing additional information and executing and delivering any additional documents as may be reasonably requested by the other to further perfect or evidence the consummation of, or otherwise implement, any transaction contemplated by this Agreement or the Trust Agreement, or to aid in the preparation of any regulatory filing or financial statement; provided, however, that any such additional documents must be reasonably satisfactory to each Party and not impose upon either Party any material liability, risk, obligation, loss, cost or expense not contemplated by this Agreement or the Trust Agreement.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Section 6.3 The Foreign Account Tax Compliance Act. Whenever requested, the Ceding Company and the Reinsurer agree to provide the other Party with all documentation required under Chapter 4 of the Code, commonly known as the Foreign Account Tax Compliance Act (FATCA) (including Forms W-8BEN-E, W-9 or other such documentation approved for use by the United States Internal Revenue Service as the case may be) that confirms that such Party is not subject to any withholding under FATCA. If a Party fails to provide such FATCA required documentation, and thus the other Party is required by law to deduct or withhold for or on account of any tax from or in respect of any amount payable under this Agreement, then such amount payable shall be net of all such deductions and withholdings in respect of such tax.

ARTICLE VII DAC TAX

Section 7.1 Election. The Ceding Company and the Reinsurer hereby elect under Treasury Regulations Section 1.848-2(g) (8) as follows: (a) The Ceding Company and the Reinsurer shall each attach a schedule to its federal income Tax Return that identifies this Agreement as a reinsurance agreement for which a joint election under Treasury Regulation Section 1.848-2(g)(8) has been made and shall otherwise file its respective federal income Tax Returns in a manner consistent with the provisions of Treasury Regulation Section 1.848-2 in effect on the date this Agreement is executed. (b) For each taxable year under this Agreement, the Party with the net positive consideration, as defined in the regulations promulgated under Code Section 848, shall capitalize specified policy acquisition expenses with respect to this Agreement without regard to the general deductions limitation of Section 848(c)(1) of the Code. (c) As used in subclause (b) above, the terms net positive consideration, specified policy acquisition expenses, and general deduction limitation are defined by reference to Treasury Regulations Section 1.848-2(g)(8) and Code Section 848 as of the effective date of this Agreement.

Section 7.2 Exchange of Information. The Ceding Company and the Reinsurer agree to exchange information pertaining to the amount of net consideration under this Agreement each year to ensure consistency or as otherwise required by the Code and applicable Treasury Regulations. (a) The Ceding Company shall submit to the Reinsurer by May 1 each year its calculation of the amount of the net consideration for the preceding calendar year. This schedule of calculations shall be accompanied by a statement that the Ceding Company shall report such amount of net consideration in its Tax Return for the preceding calendar year.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document (b) The Reinsurer may contest such calculation by providing an alternative calculation to the Ceding Company in writing within thirty (30) calendar days of the Reinsurers receipt of the Ceding Companys calculation. If the Reinsurer does not so notify the Ceding Company, then the Reinsurer shall report the amount of net consideration as determined by the Ceding Company in the Reinsurers Tax Return for the previous calendar year. (c) If the Reinsurer contests the Ceding Companys calculation of the amount of net consideration, then the Parties shall act in good faith to reach an agreement as to the correct amount within thirty (30) calendar days of the date the Reinsurer submits its alternative calculation. If the Ceding Company and the Reinsurer reach agreement on the net amount of net consideration, then each Party shall report such amount in their respective Tax Returns for the previous calendar year. (d) If the Ceding Company and the Reinsurer fail to reach an agreement on the correct amount of net consideration within such thirty (30) calendar-day period, then the net consideration for such year shall be determined by an independent accounting firm acceptable to both the Ceding Company and the Reinsurer within twenty (20) calendar days after the expiration of such thirty (30)- calendar day period.

Section 7.3 Effectiveness. The first (1st) taxable year for which this election is effective is the calendar year 2017.

Section 7.4 United States Tax Status Representation. Both the Ceding Company and the Reinsurer are subject to U.S. taxation under Subchapter L of Chapter 1 of the Code.

ARTICLE VIII INSOLVENCY

Section 8.1 Insolvency of the Ceding Company. In the event of the insolvency of the Ceding Company, all reinsurance made, ceded, renewed or otherwise becoming effective under this Agreement shall be payable by the Reinsurer directly to the Ceding Company or to its statutory liquidator, receiver or statutory successor on the basis of the Liabilities of the Ceding Company under the Reinsured Contracts without diminution because of the insolvency of the Ceding Company. It is understood, however, that in the event of the insolvency of the Ceding Company, the liquidator, receiver or statutory successor of the Ceding Company shall give written notice of the pendency of a claim against the Ceding Company on a Reinsured Contract within a reasonable period of time after such claim is filed in the insolvency proceedings and that during the pendency of such claim the Reinsurer may investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated, any defense or defenses which it may deem available to the Ceding Company or its liquidator, receiver or statutory successor. It is further understood that the expense thus incurred by the Reinsurer shall be chargeable, subject to Applicable Law and court approval, against the Ceding Company as part of the expense of liquidation to the extent of a proportionate share of the benefit which may accrue to the Ceding Company solely as a result of the defense undertaken by the Reinsurer.

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Section 9.1 Duration. (a) This Agreement shall continue in force until such time as (i) the Ceding Companys Liability arising out of or related to all Reinsured Contracts is terminated in accordance with their respective terms and the Ceding Company has received payments which discharge the Reinsurers Liabilities incurred hereunder prior to such termination, (ii) in accordance with Section 9.3, if the Ceding Company fails to pay undisputed amounts due to the Reinsurer and the Reinsurer has elected to terminate this Agreement or (iii) in accordance with Section 9.4, if the Ceding Company has elected to recapture the reinsurance of Reinsured Contracts in full, and the Ceding Company has received payments which discharge such Liability in full in accordance with Section 9.5. (b) The representations and warranties of the Ceding Company and the Reinsurer contained in this Agreement shall survive the Closing Date solely for purposes of Article X and shall expire on the first (1st) anniversary of the Closing Date, except that the representations and warranties in Section 5.2(a), Section 5.2(b), Section 5.2(k), Section 5.3(a), Section 5.3(b), Section 5.3(f) shall survive the Closing until the expiration of the applicable statute of limitations.

Section 9.2 Survival. Notwithstanding the other provisions of this Article IX, the terms and conditions of Article I, VI and X and the provisions of Section 11.2, 11.3, 11.4, 11.5, 11.6, 11.7, 11.8, 11.9, 11.10, 11.11, 11.12, 11.13, 11.15, 11.16 and 11.18 shall remain in full force and effect after the termination of this Agreement.

Section 9.3 Termination for Failure to Pay Amounts Due to Reinsurer. (a) If the Ceding Company fails to pay any undisputed amounts due to the Reinsurer pursuant to this Agreement within the due date specified in this Agreement, the Reinsurer may terminate this Agreement subject to thirty (30) calendar days prior written notice to the Ceding Company; provided, that the Ceding Company does not pay such undisputed amount within such thirty (30)- calendar day notice period. (b) Following a termination pursuant to this Section 9.3, subject to the satisfaction of payment obligations described in Section 9.5, both the Ceding Company and the Reinsurer shall be fully and finally released from all rights and obligations under this Agreement in respect of the Reinsured Contracts, other than any payment obligations due hereunder prior to the date of termination but still unpaid on such date and the obligations under the provisions that expressly survive termination as provided in Section 9.2. Following the consummation of the termination, no additional Premiums or other amounts payable under such Reinsured Contracts shall be payable to the Reinsurer hereunder, nor shall the Reinsurer have any further right to receive any Premiums or other amounts payable under such Reinsured Contracts or any further liability with respect to the General Account Liabilities. Notwithstanding the foregoing, a termination pursuant to this Section 9.3 shall not affect unpaid obligations or Liabilities due under the Trust Agreement.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Section 9.4 Recapture. (a) Upon the occurrence and continuation of a Recapture Triggering Event, the Ceding Company shall have the right (but not the obligation) to recapture all, and not less than all, of the reinsurance ceded under this Agreement, by providing the Reinsurer with written notice of its intent to effect recapture. Recapture of the Reinsured Contracts shall be effective on the last day of the month preceding the day on which the Ceding Company has provided the Reinsurer with such notice or such later day as set forth in the Ceding Company recapture notice (the Recapture Date). (b) Following a recapture pursuant to this Section 9.4, subject to the satisfaction of payment obligations described in Section 9.5, both the Ceding Company and the Reinsurer shall be fully and finally released from all rights and obligations under this Agreement in respect of the Reinsured Contracts, other than any payment obligations due hereunder prior to the Recapture Date but still unpaid on such date and the obligations under the provisions that expressly survive termination as provided in Section 9.2. Following the consummation of the recapture, no additional Premiums or other amounts payable under such Reinsured Contracts shall be payable to the Reinsurer hereunder, nor shall the Reinsurer have any further right to receive any Premiums or other amounts payable under such Reinsured Contracts or any further liability with respect to the General Account Liabilities. Notwithstanding the foregoing, a recapture pursuant to this Section 9.4 shall not affect unpaid obligations or Liabilities due under the Trust Agreement. (c) Notwithstanding the remedies contemplated by this Section 9.4 or the Trust Agreement, the Ceding Company may, in its sole discretion, require direct payment by the Reinsurer of any sum in default under this Agreement or the Trust Agreement in lieu of exercising the remedies in this Section 9.4, and it shall be no defense to any such claim that the Ceding Company might have had other recourse.

Section 9.5 Terminal Accounting Payments. (a) In connection with a termination pursuant to Section 9.3 or a recapture pursuant to Section 9.4, the Ceding Company shall prepare and deliver a settlement statement (the Terminal Settlement Statement) by the applicable Terminal Settlement Statement Date setting forth the terminal settlement calculated in accordance with Schedule B, which shall include the Net Settlement due for the final Accounting Period (the Terminal Settlement). Following delivery of the Terminal Settlement Statement, the Ceding Company shall have the right to withdraw assets in the Trust Account based on their Fair Market Value to satisfy all undisputed amounts of the Terminal Settlement, in accordance with the terms of the Trust Agreement. If the Fair Market Value of assets in the Trust Account is not sufficient to discharge such obligations, the Reinsurer shall pay to the Ceding Company cash in the amount of such deficiency within ten (10) Business Days of its receipt of the Terminal Settlement Statement. In addition, following the Terminal Settlement, the Trust Account shall be terminated and any remaining amounts or amount held in trust pursuant to Article IV shall be released to the Reinsurer after the full satisfaction of the Terminal Settlement pursuant to the Terminal Settlement Statement.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document (b) In the event that the Reinsurer disagrees with the calculation of the Terminal Settlement, the Reinsurer shall, within ten (10) Business Days after its receipt of such report, deliver written notice to the Ceding Company of such disagreement and the Parties shall attempt in good faith to resolve such disagreement. Any resolution agreed to in writing by the Parties shall be final and binding upon the Parties. If the Parties are unable to resolve any disagreement within ten (10) Business Days after the Reinsurer delivers written notice of any such disagreement to the Ceding Company, the Parties shall jointly request the Transaction Consultant to determine the Terminal Settlement. The Transaction Consultants determination of the Terminal Settlement shall be final and binding upon the Parties. The fees, costs and expenses associated with the Transaction Consultants determination shall be allocated between the Ceding Company and the Reinsurer in accordance with Transaction Consultants judgment as to the relative merits of the Parties proposals in respect of the dispute. After a final and binding resolution of any dispute described in this Section 9.5(b) is reached, the Parties agree to make any necessary adjustments to the Terminal Settlement under Section 9.5(a).

ARTICLE X INDEMNIFICATION; DISCLAIMER

Section 10.1 Reinsurers Obligation to Indemnify. Subject to the limitations contained in this Article X, the Reinsurer hereby agrees to indemnify, defend and hold harmless the Ceding Company and its Affiliates and their respective officers, directors, stockholders, employees, representatives, successors and assigns (collectively, the Ceding Company Indemnified Parties) from and against any and all Losses incurred by the Ceding Company Indemnified Parties to the extent arising from (a) any breach by the Reinsurer of the representations and warranties made by the Reinsurer in Section 5.3 hereof, (b) any breach, nonfulfillment or default in the performance of any of the covenants and agreements of the Reinsurer contained in this Agreement, (c) the Reinsured Risks or (d) any successful enforcement of this indemnity.

Section 10.2 Ceding Companys Obligation to Indemnify. Subject to the limitations contained in this Article X, the Ceding Company hereby agrees to indemnify, defend and hold harmless the Reinsurer and its Affiliates and their respective officers, directors, stockholders, employees, representatives, successors and assigns (collectively, the Reinsurer Indemnified Parties) from and against any and all Losses incurred by the Reinsurer to the extent arising from (a) any breach by the Ceding Company of the representations and warranties made by the Ceding Company in Section 2.7, Section 5.1 or Section 5.2 hereof, (b) any breach, nonfulfillment or default in the performance of any of the covenants and agreements of the Ceding Company contained in this Agreement or (c) any successful enforcement of this indemnity.

Section 10.3 Notice of Claim; Defense. (a) In the event that any Reinsurer Indemnified Party or Ceding Company Indemnified Party forms an intention to assert a claim for indemnification hereunder arising from a claim or demand made, or an action or investigation instituted, by any Person not either a Party to this Agreement or an Affiliate of a Party to this Agreement that may result in a Loss for which indemnification may be claimed under this Article X (a Third Party Claim), such party seeking indemnification (the Indemnified Party) shall, as promptly as practicable after forming such intention, give written notice (a Claim Notice) to the other party (the Indemnifying Party). Such Claim Notice shall specify in detail the facts constituting the basis for, and the amount of, the claim asserted. The failure by any Indemnified Party to notify the Indemnifying Party as

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document promptly as practicable shall relieve the Indemnifying Party of its indemnification obligations to the extent such failure or other actions taken by the Indemnified Party shall actually and materially prejudice an Indemnifying Party, and then only to the extent of such prejudice; provided, however, that an Indemnifying Party shall have no obligation whatsoever to indemnify an Indemnified Party if a Claim Notice containing the information specified above is not received by the Indemnifying Party prior to the termination of this Agreement pursuant to Article IX. (b) Subject to the provisions of Section 10.3(c), upon receipt of a Claim Notice, the Indemnifying Party shall have the right to assume the defense and control of Third Party Claims. In the event the Indemnifying Party exercises such right to assume the defense and control of a Third Party Claim, the Indemnified Party shall have the right but not the obligation reasonably to participate in (but not control) the defense of Third Party Claim with its own counsel and at its own expense unless (i) the Indemnifying Party and Indemnified Party shall have mutually agreed in writing to the retention of such counsel, or (ii) the named parties to any such Third Party Claim (including any impleaded parties) include the Indemnifying Party and Indemnified Party and representation of both Parties by the same counsel would, in the opinion of counsel to such Indemnified Party, be impermissible under the applicable code of professional responsibility due to actual or potential differing interests between the Indemnifying Party and Indemnified Party, including situations in which there are one or more legal defenses available to the Indemnified Party that are different from, or additional to, those available to the Indemnifying Party, in which case the Indemnifying Party shall bear such expense. Any election by an Indemnifying Party to assume the defense of a Third Party Claim must be delivered by the Indemnifying Party to the Indemnified Party within thirty (30) Business Days after receipt of the Indemnified Partys Claim Notice, and failure on the part of the Indemnifying Party to send such notice within such thirty (30) Business Day period shall be deemed an election not to assume the defense of such Third Party Claim. If the Indemnifying Party elects to assume the defense of a Third Party Claim, then the Indemnified Party shall, and shall cause each of its Representatives and permitted assigns to, cooperate fully with the Indemnifying Party in the defense of any such Third Party Claim, which cooperation shall include designating a liaison counsel to whom the Indemnifying Party may direct notices and other communications, using commercially reasonable efforts to make witnesses available, and providing records and documents to the extent such witnesses, records and documents are relevant to the Third Party Claim. (c) The Indemnified Party shall not consent to a settlement of, or the entry of any judgment arising from, any Third Party Claim without the consent of the Indemnifying Party. The Indemnifying Party shall be authorized to consent to a settlement of, or the entry of any judgment arising from, any Third Party Claim as to which the Indemnifying Party has assumed the defense in accordance with the terms of Section 10.3(b), without the consent of any Indemnified Party, but only to the extent that such settlement or entry of judgment: (i) provides solely for the payment of money; and (ii) provides a complete release of, or dismissal with prejudice of claims against, any Indemnified Party potentially affected by such Third Party Claim from all matters that were asserted in connection with such claims.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Section 10.4 Procedures for Direct Claims. In the event any Indemnified Party shall form an intention to bring a claim that does not involve a Third Party Claim for indemnity against any Indemnifying Party, the Indemnified Party shall deliver written notice of such claim to the Indemnifying Party as promptly as practicable after forming such intention. Such notice shall specify in detail the facts constituting the basis for, and the amount of, the claim asserted. The failure by any Indemnified Party to notify the Indemnifying Party as promptly as practicable shall relieve the Indemnifying Party of its indemnification obligation to the extent such failure or other action taken by the Indemnified Party shall actually and materially prejudice the Indemnifying Party, and then only to the extent of such prejudice; provided, however, that an Indemnifying Party shall have no obligation whatsoever to indemnify an Indemnified Party if the written notice described in this Section 10.4 is not received by the Indemnifying Party prior to the termination of this Agreement pursuant to Article IX. If any Indemnified Party brings a claim that does not involve a Third Party Claim for indemnity against any Indemnifying Party and that involves an application to any Governmental Authority or any other action to remediate the circumstances giving rise to such claim, the Indemnifying Party shall have the right to control such application or other remedial action to the extent that such Indemnifying Party could reasonably be expected to be obligated to indemnify the Indemnified Party for the costs associated with such application, any amount that might be payable as a consequence thereof, or other remedial action.

Section 10.5 No Duplication of Indemnity. (a) Any payment arising under this Article X shall be made by wire transfer of immediately available funds to such account or accounts as the Indemnified Party shall designate to the Indemnifying Party in writing. In no event shall any Indemnified Party be entitled to duplicate Losses under this Agreement and any other Transaction Document attributable to the same underlying event giving rise to such Loss or Losses. (b) If the Ceding Company has agreed to take any action or comply with any obligation under the terms of this Agreement and such agreement to act or comply is duplicative of the Ceding Companys agreements or obligations under the other Transaction Document, then, in the event of any breach of such agreement to act or comply, the Reinsurer shall only initiate proceedings or otherwise pursue remedies available to it under the terms of this Agreement.

Section 10.6 Limitations and Recovery by Indemnified Party. (a) (i) The limitations on indemnification set forth in this Section 10.6 shall not apply with respect to any Losses arising out of any breach of or inaccuracy in the representations and warranties set forth in Section 5.2(a), Section 5.2(b), Section 5.2(k), Section 5.3(a), Section 5.3(b) and Section 5.3(f) and, (ii) the limitations on indemnification set forth in Section 10.6(e) shall not apply with respect to any Losses arising out of any breach of or inaccuracy in the representations and warranties set forth in Section 5.1. (b) The Reinsurer shall be obligated to provide indemnification pursuant to Section 10.1(a) only (i) in respect of any Loss incurred or suffered by a Ceding Company Indemnified Party that is a Qualifying Loss and (ii) if the aggregate dollar amount of Qualifying Losses with respect to all misrepresentations and breaches of warranty referred to in Section 10.1(a) exceeds an amount equal to five hundred thousand dollars ($500,000) (the Deductible), and then only for the amount of Qualifying Losses in excess of the Deductible.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document (c) The maximum aggregate liability of the Reinsurer for indemnification for all Losses pursuant to Section 10.1(a) shall not exceed ten million dollars ($10,000,000). (d) The Ceding Company shall be obligated to provide indemnification pursuant to Section 10.2(a) only (i) in respect of any Loss incurred or suffered by a Reinsurer Indemnified Party that is a Qualifying Loss and (ii) if the aggregate dollar amount of Qualifying Losses with respect to all misrepresentations and breaches of warranty referred to in Section 10.2(a) exceeds the Deductible, and then only for the amount of Qualifying Losses in excess of the Deductible. (e) The maximum aggregate liability of the Ceding Company for indemnification for all Losses pursuant to Section 10.2(a) shall not exceed ten million dollars ($10,000,000). (f) Each Indemnified Party shall be obligated to use its commercially reasonable efforts to mitigate the amount of any Losses for which it is entitled to seek indemnification hereunder. (g) The amount of any indemnification payments finally determined to be due to an Indemnified Party pursuant to this Article X shall be calculated net of any federal and state income Tax benefits actually realized by such Indemnified Party as a result of the Loss as to which the payment is made. (h) Upon making any indemnification payment, the Indemnifying Party shall, to the extent of such payment, be subrogated to all rights of the Indemnified Party against any third party in respect of the Loss to which the payment relates. Each such Indemnified Party and Indemnifying Party shall duly execute upon request all instruments reasonably necessary to evidence and perfect the above- described subrogation rights. (i) The amount of any Losses sustained by an Indemnified Party and owed by an Indemnifying Party shall be reduced by any amount actually recovered by such Indemnified Party under any insurance or reinsurance coverage, or from any other party alleged to be responsible therefor (after deducting any applicable deductibles, copayments or other cost sharing arrangements and any reasonable costs and expenses incurred by the Indemnified Party in connection with such recovery). The Indemnified Party shall use commercially reasonable efforts to collect any amounts available under such insurance or reinsurance coverage and from such other party alleged to have responsibility. If the Indemnified Party receives an amount under insurance or reinsurance coverage or from such other party with respect to Losses sustained at any time subsequent to any indemnification actually having been paid pursuant to this Article X, then such Indemnified Party shall promptly reimburse by that amount the applicable Indemnifying Party for any such indemnification payment actually made by such Indemnifying Party (after deducting any applicable deductibles, copayments or other cost sharing arrangements and any reasonable costs and expenses incurred by the Indemnified Party in connection with such recovery).

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Section 11.1 Further Actions. Each of the Parties hereto shall, and shall cause their respective Affiliates to, execute such documents and other papers and perform such further acts as may be reasonably required to carry out the provisions hereof and the transactions contemplated hereby.

Section 11.2 Notices. All notices, requests and other communications to any Party hereunder shall be in writing (including facsimile transmission) and shall be given: (a) if to the Ceding Company: Farmers New World Life Insurance Company 3003 77th Ave SE Mercer Island, WA 98040 Attention: Office of CFO, James Davenport Facsimile: 206-236-6645 with a copy (which shall not constitute notice) to: Farmers New World Life Insurance Company 3003 77th Ave SE Mercer Island, WA 98040 Attention: Office of General Counsel, Garrett Paddor Facsimile: 206-275-8144 Willkie Farr & Gallagher LLP 787 Seventh Avenue New York, NY 10019 Attention: Thomas M. Cerabino Facsimile: 212-728-9208 Donald B. Henderson, Jr. Facsimile: 212-728-9262 (b) if to the Reinsurer: RGA Reinsurance Company 16600 Swingley Ridge Road Chesterfield, Missouri 63017 Attention: John Laughlin, Executive Vice President Facsimile: 636-736-7554 with a copy (which shall not constitute notice) to: RGA Reinsurance Company 16600 Swingley Ridge Road Chesterfield, Missouri 63017 Attention: Joe Zieroff, Vice President, MTS Deal Leader and Email: [email protected]

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document or such other address or facsimile number as such Party may hereafter specify for the purpose by notice to the other Parties hereto. All such notices, requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00 p.m. on a Business Day in the place of receipt. Otherwise, any such notice, request or communication shall be deemed to have been received on the next succeeding Business Day in the place of receipt.

Section 11.3 Entire Agreement. This Agreement, together with the Schedules referred to herein, the Trust Agreement and the other documents delivered pursuant hereto and thereto contain the entire agreement among the Parties with respect to the subject matter hereof and supersede all prior agreements, written or oral, with respect thereto.

Section 11.4 Waivers and Amendments. This Agreement may be amended, superseded, canceled, renewed or extended, and the terms hereof may be waived, only by a written instrument signed by the Parties, or, in the case of a waiver, by the Party waiving compliance. No delay on the part of any Party on exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any Party of any right, power or privilege, nor any single or partial exercise of any such right, power or privilege, preclude any further exercise thereof or the exercise of any other such right, power or privilege. The rights and remedies herein provided are cumulative and, unless provided otherwise in this Agreement or in the Trust Agreement, are not exclusive of any rights or remedies that any Party may otherwise have at law or in equity.

Section 11.5 Governing Law. THIS AGREEMENT SHALL BE GOVERNED IN ALL RESPECTS, INCLUDING AS TO VALIDITY, INTERPRETATION AND EFFECT, BY THE LAWS OF NEW YORK, WITHOUT GIVING EFFECT TO ITS PRINCIPLES OR RULES OF CONFLICT OF LAWS, TO THE EXTENT SUCH PRINCIPLES OR RULES ARE NOT MANDATORILY APPLICABLE BY STATUTE AND WOULD PERMIT OR REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

Section 11.6 Arbitration. (a) Except as set forth in Section 7.4, all disputes and differences between the Ceding Company and the Reinsurer on which an agreement cannot be reached shall be decided by arbitration. The arbitrators shall view this Agreement as an honorable engagement between the Parties. Furthermore, the arbitrators shall construe this Agreement from the standpoint of practical business and equitable principles and the customs and practices of the insurance and reinsurance business, rather than from the standpoint of strict law. Moreover, the arbitrators shall be released from judicial formalities and shall not be bound by strict rules of procedure and evidence. The Parties intend that the arbitrators shall make their decision with a view to effecting the intent of this Agreement.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document (b) Three (3) arbitrators shall decide any differences. They must be impartial and present or former officers of life insurance or reinsurance companies other than the Parties to this Agreement or any company owned by, or affiliated with, either Party. One (1) of the arbitrators shall be appointed by the Reinsurer, another by the Ceding Company, and the two (2) arbitrators thus selected shall appoint a third (3rd) arbitrator before arbitration begins. Should one (1) of the Parties decline to appoint an arbitrator within thirty (30) calendar days after the date of a written request to do so, or should the two (2) arbitrators selected by the Parties not be able to agree upon the choice of a third (3rd), the appointment(s) shall be left to the AIDA Reinsurance and Insurance Arbitration SocietyUS (ARIAS - US) umpire selection process. The arbitrators shall decide by a majority of votes and their decision shall be final and binding upon the Parties. The arbitrators shall hand down their decision within forty-five (45) calendar days of the close of the arbitration proceedings. The costs of arbitration, including the fees of the arbitrators, shall be shared equally by the Parties unless the arbitrators decide otherwise. Any counsel fees incurred by a Party in the conduct of the arbitration shall be paid by the Party incurring the fees.

Section 11.7 No Third Party Beneficiaries. Except as otherwise expressly set forth in any provision of this Agreement, nothing in this Agreement is intended or shall be construed to give any Person, other than the Parties, their successors and permitted assigns, any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision contained herein.

Section 11.8 Expenses. Except as otherwise provided herein, the Parties hereto shall each bear their respective expenses incurred in connection with the negotiation, preparation, execution and performance of this Agreement and the transactions contemplated hereby, including all fees and expenses of counsel, actuaries and other Representatives.

Section 11.9 Counterparts. This Agreement may be executed by the Parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument. Each counterpart may consist of a number of copies hereof each signed by less than all, but together signed by all, of the Parties hereto. Each counterpart may be delivered by facsimile or electronic mail transmission, which transmission shall be deemed delivery of an originally executed document.

Section 11.10 Severability. Any term or provision of this Agreement that is determined by a court of competent jurisdiction to be inoperative or unenforceable for any reason shall, as to that jurisdiction, be ineffective solely to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. If any provision of this Agreement is determined by a court of competent jurisdiction to be so broad as to be unenforceable, that provision shall be interpreted to be only so broad as is enforceable.

Section 11.11 Publicity. Except as may otherwise be required by Applicable Law, no release or announcement concerning this Agreement or the Trust Agreement or the transactions contemplated hereby or thereby shall be made by the Reinsurer, the Ceding Company or any of their Affiliates without the prior written approval of the Parties to this Agreement, which approval shall not be unreasonably withheld or delayed. The Parties hereto shall cooperate with each other in making any release or announcement.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Section 11.12 Treatment of Confidential Information. (a) Confidentiality. (i) From and after the Closing Date, the Ceding Company and the Reinsurer each agree that it and its Affiliates shall treat confidentially all non-public, confidential or proprietary information, including all notes, analyses, compilations, studies, copies and other documents which contain or otherwise reflect such information, provided to it or by or on behalf of the other Party in connection with the transaction contemplated in the Transaction Documents regarding such other Partys business and operations and all information provided under the transaction contemplated in the Transaction Documents, which confidential information with respect to the Ceding Company and its Affiliates shall include any Personal Information (the Proprietary Information). All Proprietary Information provided by or on behalf of a Party hereto to the other Party shall be used by such other Party and its applicable Affiliates solely for the purposes of performing its obligations under the transaction contemplated by the Transaction Documents and, except as may be required in carrying out the transaction contemplated in the Transaction Documents, shall not be disclosed to any third Party (and, in the event of any disclosure to any third party as may be required to carry out the transaction contemplated in the Transaction Documents, such third party shall be informed by the disclosing Party of the confidential nature of such information and instructed to keep such information confidential). Subject to the last sentence of this Section 11.12(a) the Ceding Company and the Reinsurer further agree that the contents of the Transaction Documents are confidential and shall not be disclosed by either Party without the other Partys prior written consent. Additionally, Proprietary Information may be shared by either Party on a need-to-know basis with its officers, directors, employees, Affiliates, third Party service providers, auditors, consultants or retrocessionaires, or in connection with the dispute process specified in this Agreement. Each Party shall be responsible for any actions by such officers, directors, employees, Affiliates, third party service providers, auditors, consultants or retrocessionaires to whom it discloses Proprietary Information which are not in accordance with this Section 11.12(a), and hereby acknowledges and agrees that any breach by them of the terms hereof shall be considered a breach by such Party. This Section 11.12(a) shall not be applicable to any information: (A) that is publicly available when provided or thereafter becomes publicly available, other than through a breach of the Trust Agreement or any other confidentiality obligation, or that is independently derived by any Party hereto without the use of any information provided by the other Party hereto in connection with the transaction contemplated in the Transaction Documents or otherwise; (B) that is required to be disclosed in any legal or regulatory proceeding, investigation, audit, examination, subpoena, civil investigative demand or other similar process, or by operation of law or regulation (and only for the purposes of such disclosure); provided, that (x) the disclosing Party shall provide the Party whose information shall be disclosed with prompt

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document advance written notice of such requirement such that the Party whose information shall be disclosed may seek a protective order or other appropriate remedy to protect its interest, (y) the disclosing Party shall reasonably cooperate with such Party and, if a protective order or other remedy is not obtained, shall only disclose such information as is necessary to be disclosed and (z) the disclosing Party shall inform any recipient of such information of the confidential nature of such information and shall instruct the recipient to keep such information confidential; or (C) where the Party seeking to disclose has received the prior written consent of the Party providing the information. Notwithstanding anything in this Section 11.12(a) to the contrary, the existence of the Trust Agreement and the contents of the Transaction Documents may be disclosed to any Governmental Authority having jurisdiction over the Ceding Company or any of its Affiliates. (ii) The Parties hereto acknowledge that the Reinsurer and its Affiliates may have access to Personal Information as is otherwise necessary for purposes of the transaction contemplated in the Transaction Documents. To the extent that any Personal Information is provided to the Reinsurer or its Affiliates, the Reinsurer agrees to, and agrees to cause its Affiliates, Representatives and service providers to, comply with all privacy laws applicable to such Personal Information and protect the confidentiality and security of any Personal Information provided to it hereunder by: (A) holding all Personal Information in strict confidence; (B) maintaining appropriate measures that are designed to protect the security, integrity and confidentiality of Personal Information; and (C) disclosing and using Personal Information received under the Transaction Documents for purposes of carrying out the transaction contemplated in the Transaction Documents only. (b) The Parties agree that, other than as agreed or as required to implement the transactions contemplated hereby, the Parties shall keep confidential the terms and conditions of this Agreement and the Trust Agreement, including the Exhibits, Annexes and Schedules hereto and thereto, and any written, oral or other information related to the negotiation hereof and thereof, except (i) as otherwise required by Applicable Law (including pursuant to the rules of any stock exchange or self-regulatory organization on which the securities of a relevant Party are listed) or (ii) disclosure to a Governmental Authority that is determined to be advisable in the reasonable judgment of the disclosing Party.

Section 11.13 Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors, permitted assigns and legal representatives. Unless otherwise provided herein, neither this Agreement nor any right or obligation hereunder may be assigned by any Party (in whole or in part) without the prior written consent of the other Party hereto.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Section 11.14 Specific Performance. The Parties agree that irreparable damage may occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the Parties shall be entitled to seek an injunction or injunctions to prevent breaches of this Agreement or to enforce specifically the performance of the terms and provisions hereof in any court specified of competent jurisdiction, in addition to any other remedy to which they are entitled at law or in equity. The Parties hereby waive, in any action for specific performance, the defense of adequacy of a remedy at law and the posting of any bond or other security in connection therewith.

Section 11.15 Utmost Good Faith. The Ceding Company and the Reinsurer each hereby covenants and agrees that from and after the date hereof it shall act in utmost good faith and deal fairly with each other in order to accomplish the objectives of the Transaction Documents; provided, that each Party hereto absolutely and irrevocably waives resort to the duty of utmost good faith or any similar principle in connection with the formation of this Agreement or the other Transaction Documents.

Section 11.16 Interpretation. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event of an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption of burden of proof shall arise favoring or disfavoring either Party by virtue of the authorship of any of the provisions of this Agreement. For purposes of this Agreement and the Trust Agreement, the words hereof, herein, hereby and other words of similar import refer to this Agreement as a whole unless otherwise indicated. Whenever the singular is used herein, the same shall include the plural, and whenever the plural is used herein, the same shall include the singular, where appropriate. The headings in this Agreement are for reference only, and shall not affect the interpretation of this Agreement. The term including means including but not limited to. Whenever used in this Agreement, the masculine gender shall include the feminine and neutral genders. All references herein to Articles, Sections, Subsections, Paragraphs and Schedules shall be deemed references to Articles and Sections and Subsections and Paragraphs of, and Schedules to, this Agreement unless the context shall otherwise require. Any reference herein to any statute, agreement (including the Trust Agreement) or document, or any section thereof, shall, unless otherwise expressly provided, be a reference to such statute, agreement, document or section as amended, modified or supplemented (including any successor section) and in effect from time to time. All terms defined in this Agreement shall have the defined meaning when used in any Exhibit, Schedule, Trust Agreement, certificate or other documents attached hereto or made or delivered pursuant hereto unless otherwise defined therein. The Parties acknowledge and agree that, except as specifically provided herein, they may pursue an action for declaratory judgment or like remedy in the event of a dispute with respect to the interpretation or construction of this Agreement. This Agreement shall be interpreted and enforced in accordance with the provisions hereof without the aid of any canon, custom or rule of law requiring or suggesting constitution against the Party causing the drafting of the provision in question.

Section 11.17 Incontestability. In consideration of the mutual covenants and agreements contained herein, each Party agrees that this Agreement, and each and every provision hereof, is and shall be enforceable by and between them according to its terms, and each Party does hereby agree that it shall not contest the validity or enforceability hereof.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Section 11.18 Dollar References. All dollar references in this Agreement are to the currency of the United States.

[The rest of this page intentionally left blank.]

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document IN WITNESS WHEREOF , the Parties hereto have caused this Agreement to be executed effective as of the Effective Date.

FARMERS NEW WORLD LIFE INSURANCE COMPANY

By: /S/ James Davenport Name: James Davenport Title: CFO

By: /s/ Garrett B. Paddor Name: Garrett Paddor Title: General Counsel & Secretary

RGA REINSURANCE COMPANY

By: /s/ John P Laughlin Name: John P Laughlin Title: Executive Vice President

By: /s/ Mark Renetzky Name: Mark Renetzky Title: VP

[Signature Page to Reinsurance Agreement]

Form of Letter of Credit

BANK NAME - CONFIDENTIAL PAGE: 1

DATE: TBD

IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER:

ISSUING BANK

NAME AND ADDRESS

BENEFICIARY APPLICANT

NAME AND ADDRESS NAME AND ADDRESS

AMOUNT

NOT

EXCEEDING

EXPIRATION DATE

TO: BENEFICIARY

WE HEREBY ESTABLISH THIS CLEAN, IRREVOCABLE, AND UNCONDITIONAL (EXCEPT AS STATED HEREIN) LETTER OF CREDIT IN YOUR FAVOR AS BENEFICIARY FOR DRAWINGS UP TO EFFECTIVE

IMMEDIATELY. THIS LETTER OF CREDIT IS ISSUED, PRESENTABLE AND PAYABLE AT OUR OFFICE (BANK ADDRESS) AND EXPIRES WITH OUR CLOSE OF BUSINESS ON .1

EXCEPT WHEN THE AMOUNT OF THIS LETTER OF CREDIT IS INCREASED, THIS CREDIT CANNOT BE MODIFIED OR REVOKED WITHOUT YOUR CONSENT.

THE TERM BENEFICIARY INCLUDES ANY SUCCESSOR BY OPERATION OF LAW OF THE NAMED BENEFICIARY, INCLUDING, WITHOUT LIMITATION ANY LIQUIDATOR, REHABILITATOR, RECEIVER, OR CONSERVATOR. DRAWINGS BY ANY LIQUIDATOR, REHABILITATOR, RECEIVER OR CONSERVATOR SHALL BE FOR THE BENEFIT OF ALL OF THE BENEFICIARYS POLICYHOLDERS.

1 Term must be at least one year.

WE HEREBY UNDERTAKE TO PROMPTLY HONOR YOUR SIGHT DRAFT(S) DRAWN ON US INDICATING OUR CREDIT NO. FOR ALL OR ANY PART OF THIS CREDIT UPON PRESENTATION OF YOUR DRAFT DRAWN ON US AT OUR OFFICE SPECIFIED IN PARAGRAPH ONE ON OR BEFORE THE EXPIRATION DATE HEREOF OR ANY AUTOMATICALLY EXTENDED EXPIRY DATE AND NO OTHER DOCUMENT NEED BE PRESENTED.

EXCEPT AS EXPRESSLY STATED HEREIN, THIS UNDERTAKING ISNOT SUBJECT TO ANY AGREEMENT, CONDITION REQUIREMENT, OR QUALIFICATION. THE OBLIGATION OF (BANK NAME) UNDER THIS LETTER OF CREDIT IS THE INDIVIDUAL OBLIGATION OF (BANK NAME) AND IS IN NO WAY CONTINGENT UPON REIMBURSEMENT WITH RESPECT THERETO, OR UPON OUR ABILITY TO PERFECT ANY LIEN, SECURITY INTEREST, OR ANY OTHER REIMBURSEMENT.

BANK NAME - CONFIDENTIAL PAGE: 2

THIS ISAN INTEGRAL PART OF LETTER OF CREDIT NUMBER:

IT ISA CONDITION OF THIS LETTER OF CREDIT THAT IT SHALL BE DEEMED TO BE AUTOMATICALLY EXTENDED WITHOUT AMENDMENT FOR PERIOD(S) OF ONE (1) YEAR EACH FROM THE CURRENT OR ANY FUTURE EXPIRATION DATE UNLESS AT LEAST THIRTY (30)DAYS PRIOR TO SUCH EXPIRATION DATE, WE NOTIFY YOU BY REGISTERED MAIL THAT THIS LETTER OF CREDIT WILL NOT BE RENEWED FOR ANY SUCH ADDITIONAL PERIOD(S).

THIS LETTER OF CREDIT IS SUBJECT TO AND.GOVERNED BY THE LAWS OF THE STATE OF NEW YORK AND THE 2007 REVISION OF THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS OF THE INTERNATIONAL CHAMBER OF COMMERCE (PUBLICATIONNO. 600) AND, IN THE EVENT OF ANY CONFLICT, THE LAWS OF THE STATE OF NEW YORK WILL CONTROL. IF THIS CREDIT EXPIRES DURING AN INTERRUPTION OF BUSINESS AS DESCRIBED IN ARTICLE 36 OF SAID PUBLICATION 600, THE BANK HEREBY SPECIFICALLY AGREES TO EFFECT PAYMENT IF THIS CREDIT IS DRAWN AGAINST WITHIN THIRTY (30)DAYS OF RESUMPTION OF BUSINESS.

IFYOUREQUIREANYASSISTANCE ORHAVEANYQUESTIONS REGARDING THIS TRANSACTION, PLEASE CALL (BANK PHONE NUMBER).

AUTHORIZED SIGNATURE

CONSISTS OF 2 PAGE(S).

ORIGINAL

00-3S-3337B 12.2006

Investment Guidelines

Overview These investment guidelines set forth the policies and guidelines for the management of the investment portfolio in accordance with the treaty.

Ratings Methodology Public bond ratings, including 144A, must be rated by at least one of Standard & Poors Rating Services (S&P), Moodys Investor Services, Inc. (Moodys) or Fitch Ratings Inc. (Fitch). The Credit Rating shall be determined as follows: when three (3) credit ratings are available, the Credit Rating will be the middle rating; when two (2) credit ratings are available, the Credit Rating will be the lower rating; when only one (1) credit rating is available the Credit Rating will be the single rating. Further, all references to an S&P rating shall mean and include the equivalent rating from Moodys and/or Fitch.

Structured products (ABS, CMBS, RMBS) issued before 1/1/2012 and private placements ratings shall be based on NAIC ratings. In the case NAIC ratings are temporarily not assigned at the purchase, an internal rating will be used until the NAIC rating is available. Once the NAIC rating is available, the NAIC rating will be retroactively assumed to be the rating at purchase and the limits re-tested.

Commercial mortgages will be assigned a rating based on their NAIC CM ratings, although internal ratings may be used in the interim provided CM ratings are not yet available. Consistent with the NAICs methodology, Commercial Mortgage Loan (CML) CM ratings are calculated and reported on an end of calendar quarter basis. Between quarters, the CM ratings for CMLs will equal the prior quarters rating, unless the CML is placed in the Trust Account between quarters. CMLs placed in the Trust Account between quarters are assigned a preliminary rating by the Reinsurers Commercial Mortgage Loan group, which estimates the rating using the framework provided by the NAICs Risk-Based Capital C-1 model for CMLs.

The rating conversion table below shows the translation of NAIC ratings and CM ratings for the purposes of the calculation of rating limits.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Eligible Investment Sectors Investment Sectors B The assets listed below are eligible for investment, with the following clarifications/ constraints: US GOVT B-1 U.S.Governments for the purpose of this requirement are the following: Securities directly issued by the US Treasury. Securities 100% defeased with US Treasuries. Securities with the full faith and credit of the US Treasury. Securities issued by U.S. Government Sponsored Enterprises (GSE). Residential and Commercial Mortgage Backed Securities (MBS) guaranteed by U.S. Government agencies and GSEs. All securities must have the same rating as the US Treasury. Non AGY-Residential MBS B-2 Non-US Agency Residential MBS (RMBS) must be 1st lien mortgages. Investments can be rated AAA to BBB-. BBB-rated can be a maximum of 15% with an issuer limit of 1.0%. Investments must have a dollar price of $110 or less at time of purchase. ABS B-3 Asset Backed Securities (ABS). Home Equity and sub-prime loans are not allowed to constitute the securities. Investments can be rated AAA to BBB-. BBB-rated can be a maximum of 10%. CMBS B-4 Non-US Agency Commercial Mortgage Backed Securities (CMBS). Investments can be rated AAA to BBB-. BBB-rated can be a maximum of 10% with an issuer limit of 1.0%. CML B-5 Commercial Mortgage Loans (CML). All loans must be 1st lien. Only loans rated CM1 and CM2 are allowed. CM2 loans can be a maximum of 10% with an issuer limit of 1.5%. Construction loans are not allowed. Loans must be secured by income producing industrial, multifamily, office, and retail in the U.S. CLO B-6 Collateralized Loan Obligations (CLO). CLOs must have a minimum rating of A- and must be constituted with broadly syndicated and/or middle market loans. Credit (Corporates, Munis) B-7 Publically and privately issued corporate bonds, debentures, notes, loans, or other forms of debt issued by corporations. NAIC designated fixed income ETFs can be included with issuer limits applicable on a look through to the underlying. Taxable and tax-exempt US municipal issues are permitted investments. Investments can be rated AAA to B-. BBB-rated can be a maximum of 40%. BB+ to B- rated can be a maximum of 4%. Additionally, Hybrids, Tier 1, and Tier 2 bonds are allowed up to 5% as long as the bond does not have contractual equity conversion features. For example, Contingent Convertible (CoCo) bonds are not allowed. Private Placements can be a maximum of 40% Foreign B-8 Foreign issues (bonds issued in the US market by foreign companies or governments as defined by Country of Risk and including Canadian holdings) rated BBB- and higher are permitted with a maximum allocation of 20%. Only issues where the sovereign debt of the issuers domicile is rated A- or higher are permitted. Equity B-9 Only equity received as part of a restructuring can be held. Short-term B-10 Commercial paper and other short-term investments issued by entities other than the U.S. Treasury or U.S. Government agencies must have a rating of at least A1/P1.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Other B-11 Floating-rate issues can be a maximum of 30% The following investments are prohibited: CDO investments Prohibited CMOs include IOs, Inverse Floaters, and JUMP Zs. DRD, CoCo, and preferred stocks. Techniques such as short selling and use of leverage are prohibited. Derivatives (options, futures, etc) are not to be employed including embedded derivatives but excluding callable bonds. No investments in debt securities issued or guaranteed by Zurich Global Investment Management, Inc. (ZIC), its affiliates or subsidiaries may be purchased. The ZIC will provide a list of the restricted affiliates annually, which the Trustee will use to restrict their purchases.

Sector Limits C Sector Max Limit Min Limit US Government 100 % 15 % Residential Mortgages 30% 0% ABS 15% 0% CMBS and CML 20% 0% CLO 10% 0% Credit 85% 0% Short-Term/Cash 5% 0% Credit Quality D-1 See above: Ratings Methodology.

Quality Max Limit Issuer Limit Limitations by Credit D-2 US Government 100 % 100.0 % Quality (using Ratings AAA 85% 3.0% Conversion Table) AA 85% 3.0% A 85% 2.5% BBB 50% 2.0%* BB+ to B- 4%** 1.5% * Unless noted in B Authorized Investment Sectors ** Excludes Fallen Angels

Rating Downgrade D-3 Securities held that are subsequently downgraded below BBB- (Fallen Angels) may be held up (Fallen Angels) to a maximum of 3%. Should the 3% Fallen Angel limit be exceeded, the Ceding Company and the Reinsurer will agree on the best way to bring the Portfolio back into compliance with the Fallen Angels limit. If Fallen Angels increase above 4%, the Manager has 60 days to reduce Fallen Angels below 4%. Securities must be sold if they become NAIC 6. Pursuant to Clause H, this limit shall be measured continuously rather than at time of purchase. Base Currency E Assets must be denominated in US Dollars. Issuer limitations F Issuer limits are based on the collateral pool for MBS, ABS and CMBS instruments. For issuers with multiple ratings on their debt issuance, established limits will apply for each ratings bucket with the cumulative total not to exceed the limit of the rating of the immediate issuer. Commercial paper will be aggregated with long-term obligations of the issuer in the portfolio for the purpose of calculating the single issuer limitation. Investments in insurance companies are limited to 1.0% per issuer. Measurement Conventions H Limits and targets are determined on a U.S. GAAP book value basis and are measured at the time of purchase, except for those limits regarding Fallen Angels in clause D-3 which will be measured in continuously.. The purchase of assets for which limits are exceeded is allowed, as long as the limit is not further exceeded by the purchase. If, for example, the portfolio holds 51% BBB-rated bonds, a BBB-rated bond can be purchased in place of a BBB-rated bond that has been sold as long as the net exposure to BBB does not increase above 51%. Annual Review I At least annually from the date of the commencement of the reinsurance agreement, the Ceding Company and the Reinsurer shall together review in good faith the operation and application of these Investment Guidelines in the light of prior performance and changes to the regulatory regime and in the quality and liquidity of the constituent asset classes and sectors with a view to determining whether any modifications to these Investment Guidelines would be appropriate. Restrictions based on local J The Ceding Company will advise the Reinsurer of investment restrictions based on changes to requirements regulatory requirements promptly after the Ceding Company becomes aware of such changes.

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Reporting Reporting K Monthly Investment Management Reports (delivered within 30 calendar days of the end of the calendar Requirements month) should include: Portfolio constituents, including their book and market values A statement of compliance with these Investment Guidelines Investment Management Reports delivered on a quarterly basis should include: Investment income (coupon income only) Comparison to the benchmark index Realized gains/losses Watch list (issuers that should be closely monitored) Any applicable benchmark changes/requirements Total return and performance attribution (should be reported on a quarterly and annual basis)1 ALM reporting information Compliance reports must be received within 30 calendar days after the calendar quarter-end close Such other information as reasonably requested by the Ceding Company and available to the Reinsurer.

1 Total return is calculated daily using a time weighted return method. The daily performance figures are geometrically linked (compounded) for reporting periods and compared to the benchmark return.

NAIC Commercial NRSRO NAIC Mortgage (CM) Rating Rating Rating AAA AA+ AA AA- A+ A NAIC 1 CM 1 A- BBB+ BBB NAIC 2 CM 2 BBB- BB+ BB NAIC 3 CM 3 BB- B+ B NAIC 4 CM 4 B- CCC+ CCC NAIC 5 CM 5 CCC- CC+ CC NAIC 6 CM 6, 7 CC- C+ C D

Terminal Settlement

In the event of a termination pursuant to Section 9.3 or a recapture pursuant to Section 9.4, the Terminal Settlement shall be equal to (i) plus (ii) plus (iii) plus (iv) minus (v) minus (vi) minus (vii), where: (i) any Net Settlement due to the Ceding Company for the final Accounting Period; (ii) equals the product of (A) multiplied by (B), where: (A) equals the Ratio of Market Value to Book Value as of the Recapture Date, but in no event less than ninety percent (90%); and (B) equals the sum of the General Account Statutory Reserves as of the Recapture Date, (iii) equals the Unamortized IMR Amount as of the Recapture Date; (iv) equals any amounts due to the Ceding Company under this Agreement and unpaid by the Reinsurer as of the Recapture Date; (v) equals any Net Settlement due the Reinsurer for the final Accounting Period; (vi) equals any amounts due to the Reinsurer under this Agreement and unpaid by the Ceding Company as of the Recapture Date; and (vii) equals, in the event that the Ceding Company exercises its right of recapture pursuant to Section 9.4 due to the occurrence of a Recapture Triggering Event described in paragraph (f) of the definition of Recapture Triggering Event, the sum of thirty million dollars ($30,000,000).

Settlement Statement

Monthly Settlement Statement

For the period from xx/xx/xxxx through xx/xx/xxxx

Prepared by FNWL for RGA on xx/xx/xxxx

Deferred Variable Structured Annuities Annuities Settlements Total + Premiums Received + Separate Account Revenue M&E Risk, Endorsement, and Rider Charges Administrative Expense Charges Contract/Records Maintenance Charges Surrender Charges 12B-1 Fees and Other Revenues from Mutual Funds Other Charges or Fees Total Net Transfers from Separate to + General accounts - General Account Liabilities Death Claims (Account Value) Death Claims (Excess Paid Due to GMDB Rider) Annuity Payments Claim Expenses (incl. Litigation Expenses) Withdrawal Amounts (Account Value net of Charges) Surrender Amounts (Account Value net of Charges) Surrender Amounts (Excess Paid Due to GRIB Rider) Total - Expense Allowances Per Policy Allowance Percent of Reserve Allowance Percent of Premium Allowance Total + Other

= Net Settlement due RGA (FNWL)

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Variable Annuity Supplemental Information a. Modified Coinsurance Reserve end of current Accounting Period b. Modified Coinsurance Reserve end of preceding Accounting Period

Supplemental Data

Monthly Seriatim Data Deferred Annuity Variable Annuity Structured Settlement Policy Number Policy Number Policy Number Plan Code Plan Code Life Contingent / Non-life Contingent Indicator Issue Date Issue Date Issue Date Issue Age Issue Age Issue Age Sex Sex Sex Issue State Issue State Issue State Tax ID (Qualified/Nonqualified) Tax ID (Qualified/Nonqualified) Payment Amount Fund Value GMDB Indicator Payment Frequency Cash Value GRIB Indicator First Payment Date Total Statutory Reserve Fund Value Final Payment Date Total Tax Reserve Fixed Fund Value Joint Indicator Current Interest Rate Start Date Variable Fund Value by Fund Current Interest Rate End Date Cash Value Current Interest Rate Fixed Cash Value Variable Cash Value GMDB Death Benefit GRIB Benefit Base Total Statutory Reserve Total Tax Reserve Current Interest Rate Start Date Current Interest Rate End Date Current Interest Rate

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Monthly Transactional Data Structured Deferred 6Annuity Variable Annuity Settlement Policy Number Policy Number Policy Number Premiums Received Premiums Received Payment Amount Surrender Amounts Surrender Amounts Surrender Charges Surrender Charges Withdrawal Amounts Withdrawal Amounts Withdrawal Charges Withdrawal Charges Fund Value Released on Death Fund Value Released on Death Death Claims (Excess Paid Due to GMDB Rider) Surrender Amounts (Excess Paid Due to GRIB Rider) Mortality and Expense Charges Administrative Expense Charges Endorsement or Rider Charges Transfers to/from Separate Account

Quarterly Seriatim Reserve Data Structured Deferred Annuity Variable Annuity Settlement Policy Number Policy Number Policy Number Total Statutory Reserve Total Statutory Reserve Total Statutory Reserve Statutory Valuation Interest Rate Statutory Valuation Interest Rate Statutory Valuation Interest Rate Statutory Valuation Mortality Table Statutory Valuation Mortality Table Statutory Valuation Mortality Table Total Tax Reserve BAR or AG33 Total Tax Reserve Tax Valuation Interest Rate AG34 Reserve (Pre-2010 issued contracts) Tax Valuation Interest Rate Tax Valuation Mortality Table AG39 Reserve (Pre-2010 contracts) Tax Valuation Mortality Table AG43 CTE70 AG43 SSR Total Tax Reserve Tax Valuation Interest Rate Tax Valuation Mortality Table

Expense Allowances

Reinsured Contract Monthly Expense Allowance Individual Variable Annuities $7.50 per policy, increased by 2% on the first day of each calendar year, commencing on January 1, 2018, and by 2% on the first day of each successive year on a cumulative basis (i.e., an increase of 2% of the amount for the previous calendar year). Premiums (limited to $1 million per Reinsured Contract) times 7% for issue ages 0 - 80, 4% for issue ages 81 - 85, 1% for issue ages 86 - 90 and 0% for issue ages 91+. Individual Fixed Deferred Annuities $4.17 per policy, increased by 2% on the first day of each calendar year, commencing on January 1, 2018, and by 2% on the first day of each successive year on a cumulative basis (i.e., an increase of 2% of the amount for the previous calendar year). For those Reinsured Contracts with 1.5% guaranteed credited rates, Premiums times the commission rates specified in the table below:

Commission Rates Issue Ages Issue Ages Policy Years 0 - 80 81+ 1 5.00 % 2.50 % 2 4.81 % 0.96 % 3 4.62 % 0.92 % 4 4.44 % 0.89 % 5 4.27 % 0.85 % 6+ 0.00 % 0.00 %

For those Reinsured Contracts with 3% through 4% guaranteed credited rates, no commissions are payable on Premiums. Structured Settlement Annuities An amount equal to.0042% of General Account Statutory Reserves allocable to the Structured Settlement Annuities as of the last day of the previous calendar month.

Reinsured Contracts

The lists of those annuities included in the Reinsured Contracts are in the following files and were provided by the Ceding Company in the virtual data room on IntraLinks or via email:

Individual Variable Annuities: Microsoft Access database 6.32 VA Seriatim Data as of 12312016.mdb

Individual Fixed Deferred Annuities: Microsoft Access databases named 6.2 DA Seriatim Data as of 12312016.mdb and DA Seriatim Data New Policies in 2017 as of 20170331.accdb

Structured Settlement Annuities: Microsoft Excel files named 6.5 SS Seriatim Benefit Info_20161231.xlsx and 6.6 SS Seriatim Other Info_20161231.xlsx

Separate Account

Farmers Annuity Separate Account A

Transferred Assets

Original Face (if different from current CUSIP Long Description ID Number face) Current Face 00131L2A2 AIA GROUP LTD 2.25 03/11/2019 0.00 1,295,000.00 00131L2A2 AIA GROUP LTD 2.25 03/11/2019 0.00 2,000,000.00 00131L2A2 AIA GROUP LTD 2.25 03/11/2019 0.00 705,000.00 00139PAA6 AIG SUNAMER GLOB FIN X 6.9 03/15/2032 0.00 8,000,000.00 00184AAG0 TIME WARNER INC 7.7 05/01/2032 0.00 600,000.00 00184AAG0 TIME WARNER INC 7.7 05/01/2032 0.00 2,150,000.00 00206RBD3 AT&T INC 3 02/15/2022 0.00 3,370,000.00 00206RBN1 AT&T INC 2.625 12/01/2022 0.00 9,000,000.00 00206RDA7 AT&T INC 5 03/01/2021 0.00 9,000,000.00 00206RDA7 AT&T INC 5 03/01/2021 0.00 1,000,000.00 00206RDD1 AT&T INC 3.95 01/15/2025 0.00 1,695,000.00 00254ELS9 SWEDISH EXPORT CREDIT 1.125 04/05/2018 0.00 3,520,000.00 00254ELS9 SWEDISH EXPORT CREDIT 1.125 04/05/2018 0.00 1,410,000.00 002819AC4 ABBOTT LABORATORIES 6.15 11/30/2037 0.00 785,000.00 002824AW0 ABBOTT LABORATORIES 4.125 05/27/2020 0.00 2,500,000.00 00507UAF8 ACTAVIS FUNDING SCS 3.85 06.15.2024 0.00 1,110,000.00 00846UAG6 AGILENT TECHNOLOGIES INC 5 07/15/2020 0.00 1,275,000.00 010392EE4 ALABAMA POWER CO 5.6 03/15/2033 0.00 1,000,000.00 020002AS0 ALLSTATE CORP 5.55 05/09/2035 0.00 900,000.00 020002AS0 ALLSTATE CORP 5.55 05/09/2035 0.00 3,000,000.00 020002AS0 ALLSTATE CORP 5.55 05/09/2035 0.00 5,710,000.00 020002AS0 ALLSTATE CORP 5.55 05/09/2035 0.00 3,100,000.00 02209SAL7 ALTRIA GROUP INC 4.75 05/05/2021 0.00 1,800,000.00 02209SAS2 ALTRIA GROUP INC 4 01/31/2024 0.00 1,165,000.00 025816AZ2 AMERICAN EXPRESS CO 8.15 03/19/2038 0.00 1,335,000.00 02581FYA1 AMERICAN EXPR CENTURION 5.95 06/12/2017 0.00 8,000,000.00 02665WBA8 AMERICAN HONDA FINANCE 1.7 02/22/2019 0.00 2,780,000.00 026874DH7 AMERICAN INTL GROUP 3.9 04/01/2026 0.00 715,000.00 02765UCR3 AMERICAN MUNI PWR-OHIO INC O 6.053 02/15/2043 6,665,000.00 6,665,000.00 02765UCR3 AMERICAN MUNI PWR-OHIO INC O 6.053 02/15/2043 1,665,000.00 1,665,000.00 02765UCY8 AMERICAN MUNI PWR-OHIO INC OH 6.449 02/15/2044 1,070,000.00 1,070,000.00 02765UCY8 AMERICAN MUNI PWR-OHIO INC OH 6.449 02/15/2044 355,000.00 355,000.00 03027WAJ1 AMTT 13 2A 3.07 03/15/2048 ABS 5,000,000.00 5,000,000.00 03027WAJ1 AMTT 13 2A 3.07 03/15/2048 ABS 1,000,000.00 1,000,000.00 03076CAE6 AMERIPRISE FINANCIAL INC 5.3 03/15/2020 0.00 1,400,000.00 03076CAE6 AMERIPRISE FINANCIAL INC 5.3 03/15/2020 0.00 180,000.00

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 03076CAE6 AMERIPRISE FINANCIAL INC 5.3 03/15/2020 0.00 630,000.00 031162AV2 AMGEN INC 5.85 06/01/2017 0.00 4,250,000.00 031162AV2 AMGEN INC 5.85 06/01/2017 0.00 3,000,000.00 035229DD2 ANHEUSER-BUSCH COS LLC 5.5 01/15/2018 0.00 700,000.00 035242AN6 ANHEUSER-BUSCH INBEV FIN 4.9 02/01/2046 0.00 1,610,000.00 035242AN6 ANHEUSER-BUSCH INBEV FIN 4.9 02/01/2046 0.00 690,000.00 037389AW3 AON CORP 5 09/30/2020 0.00 4,000,000.00 037411AW5 APACHE CORP 5.1 09/01/2040 0.00 2,180,000.00 03746AAA8 APACHE FINANCE CANADA 7.75 12/15/2029 0.00 3,000,000.00 037833CC2 APPLE INC 1.55 08/04/2021 0.00 1,290,000.00 039483AS1 ARCHER DANIELS 7 02/01/2031 0.00 3,500,000.00 039483BC5 ARCHER-DANIELS-MIDLAND C VAR 03/01/2041 0.00 1,000,000.00 04010LAP8 ARES CAPITAL CORP 3.875 01/15/2020 0.00 4,000,000.00 046353AL2 ASTRAZENECA PLC 3.375 11/16/2025 0.00 1,605,000.00 046353AL2 ASTRAZENECA PLC 3.375 11/16/2025 0.00 424,000.00 046353AL2 ASTRAZENECA PLC 3.375 11/16/2025 0.00 576,000.00 048303CD1 ATLANTIC CITY ELECTRIC 7.75 11/15/2018 0.00 1,540,000.00 05253JAL5 AUST & NZ BANKING GRP NY 3.7 11/16/2025 0.00 855,000.00 05367AAD5 AVIATION CAPITAL GROUP 6.75 04/06/2021 0.00 2,300,000.00 05367AAD5 AVIATION CAPITAL GROUP 6.75 04/06/2021 0.00 2,150,000.00 05565QCD8 BP CAPITAL MARKETS PLC 2.75 05/10/2023 0.00 1,530,000.00 05565QDH8 BP CAPITAL MARKETS PLC 3.723 11/28/2028 0.00 7,000,000.00 05567LT31 BNP PARIBAS 5 01/15/2021 0.00 4,000,000.00 05578DAX0 BPCE SA 3.375 12/02/2026 0.00 1,525,000.00 056037AF1 BVPS II FUNDING CORP 8.68 06/01/2017 688,804.00 67,000.00 057224AY3 BAKER HUGHES INC 7.5 11/15/2018 0.00 2,430,000.00 057224AZ0 BAKER HUGHES INC 5.125 09/15/2040 0.00 1,380,000.00 057224BC0 BAKER HUGHES INC 3.2 08/15/2021 0.00 2,070,000.00 05952AAE4 BACM 2008-1 A4 6.24034 02/10/2051 CMBS 7,602,000.00 4,723,387.90 05952AAG9 BACM 2008-1 AM 6.28334 02/10/2051 CMBS 889,000.00 889,000.00 05952AAG9 BACM 2008-1 AM 6.28334 02/10/2051 CMBS 889,000.00 889,000.00 06051GDX4 BANK OF AMERICA CORP 5.65 05/01/2018 0.00 2,000,000.00 06051GDZ9 BANK OF AMERICA CORP 7.625 06/01/2019 0.00 1,000,000.00 06051GEE5 BANK OF AMERICA CORP 5.875 01/05/2021 0.00 630,000.00 06051GFF1 BANK OF AMERICA CORP 4 04/01/2024 0.00 1,000,000.00 06051GFG9 BANK OF AMERICA CORP 4.875 04/01/2044 0.00 1,000,000.00 06051GFM6 BANK OF AMERICA CORP 4 01/22/2025 0.00 10,000,000.00 06051GFS3 BANK OF AMERICA CORP 3.875 08/01/2025 0.00 9,000,000.00 06406FAE3 BANK OF NY MELLON CORP 2.45 08/17/2026 0.00 1,000,000.00 06406HBM0 BANK OF NEW YORK MELLON 5.45 05/15/2019 0.00 2,000,000.00 06406HBP3 BANK OF NY MELLON CORP 4.6 01/15/2020 0.00 2,625,000.00 06406HBU2 BANK OF NEW YORK MELLON 4.15 02.01.2021 0.00 2,000,000.00 06739FHV6 BARCLAYS BANK PLC 3.75 05/15/2024 0.00 1,440,000.00

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 072024ND0 BAY AREA CA TOLL AUTH TOLL B 6.263 04/01/2049 275,000.00 275,000.00 072024ND0 BAY AREA CA TOLL AUTH TOLL B 6.263 04/01/2049 960,000.00 960,000.00 07330MAB3 BRANCH BANKING & TRUST 3.625 09/16/2025 0.00 3,000,000.00 073730AG8 BEAM INC 3.25 06/15/2023 0.00 665,000.00 07388QAE9 BSCMS 2007-PW17 A4 5.694 06/11/2050 CMBS 1,137,000.00 610,113.95 084670BJ6 BERKSHIRE HATHAWAY INC 3 02/11/2023 0.00 530,000.00 084670BS6 BERKSHIRE HATHAWAY INC 3.125 03/15/2026 0.00 2,365,000.00 09062XAD5 BIOGEN INC 5.2 09/15/2045 0.00 185,000.00 09256BAD9 BLACKSTONE HOLDINGS FINA 4.75 02/15/2023 0.00 400,000.00 09256BAG2 BLACKSTONE HOLDINGS FINA 5 06/15/2044 0.00 150,000.00 09256BAG2 BLACKSTONE HOLDINGS FINA 5 06/15/2044 0.00 3,150,000.00 097023AU9 BOEING CO 6.125 02/15/2033 0.00 10,000,000.00 111021AE1 BRITISH TELECOM PLC 9.125 12/15/2030 0.00 1,000,000.00 111021AE1 BRITISH TELECOM PLC 9.125 12/15/2030 0.00 10,000,000.00 12189LAA9 BURLINGTN NORTH SANTA FE 5.75 05/01/2040 0.00 2,250,000.00 12189LAD3 BURLINGTN NORTH SANTA FE 4.1 06/01/2021 0.00 1,385,000.00 12189TAX2 BURLINGTN NORTH SANTA FE 6.2 08/15/2036 0.00 1,250,000.00 12505JAB9 CBL & ASSOCIATES LP 4.6 10/15/2024 0.00 1,930,000.00 12505JAB9 CBL & ASSOCIATES LP 4.6 10/15/2024 0.00 4,000,000.00 12531YAP3 CFCRE 2016-C4 AHR 3.121 05/10/2058 CMBS 4,000,000.00 3,968,866.54 12572QAE5 CME GROUP INC 3 09/15/2022 0.00 6,000,000.00 12572QAE5 CME GROUP INC 3 09/15/2022 0.00 5,000,000.00 12591KAD7 COMM 2013-CR12 A3 3.765 10/10/2046 CMBS 10,000,000.00 10,000,000.00 12591KAD7 COMM 2013-CR12 A3 3.765 10/10/2046 CMBS 5,000,000.00 5,000,000.00 12591VAB7 COMM 2014-CR16 A2 3.042 04/10/2047 CMBS 5,000,000.00 5,000,000.00 12625UBF9 COMM 2013-CR9 A 4.231465 07/10/2045 CMBS 5,025,110.00 5,025,110.00 12626LAE2 COMM 2013-CR11 A4 4.258 08/10/2050 CMBS 10,000,000.00 10,000,000.00 12630BAZ1 COMM 2013-CR13 A3 3.928 11/10/2023 CMBS 9,000,000.00 9,000,000.00 12631DBA0 COMM 2014-CR17 A4 3.7 05/10/2047 CMBS 2,000,000.00 2,000,000.00 12634NAU2 CSAIL 2015-C2 ASB 3.2241 06/15/2057 CMBS 7,500,000.00 7,500,000.00 126650AW0 CVS PASS-THROUGH TRUST 5.298 01/11/2027 3,565,000.00 1,674,773.27 126650AW0 CVS PASS-THROUGH TRUST 5.298 01/11/2027 3,869,000.00 1,817,587.02 126650BJ8 CVS HEALTH CORP 6.25 06/01/2027 0.00 594,000.00 126659AA9 CVS PASS-THROUGH TRUST 8.353 07/10/2031 4,000,000.00 3,266,418.32 126659AA9 CVS PASS-THROUGH TRUST 8.353 07/10/2031 1,000,000.00 816,604.58 13063A5G5 CALIFORNIA ST 7.55 04/01/2039 0.00 4,300,000.00 13063A5G5 CALIFORNIA ST 7.55 04/01/2039 0.00 565,000.00 136375BL5 CANADIAN NATL RAILWAY 6.25 08/01/2034 0.00 1,500,000.00 141781AT1 CARGILL INC 6.125 04/19/2034 0.00 4,000,000.00 14309UAA0 CARLYLE HOLDINGS FINANCE 3.875 02/01/2023 0.00 450,000.00 14313UAD8 CARMX 2014-4 A4 1.81 07/15/2020 ABS 2,750,000.00 2,750,000.00 14313WAC6 CARMX 2015-1 A3 1.38 11/15/2019 ABS 5,830,000.00 3,783,802.21 144141CY2 DUKE ENERGY PROGRESS INC 6.3 04/01/2038 0.00 530,000.00

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 149123BF7 CATERPILLAR INC 6.625 07/15/2028 0.00 1,000,000.00 14912L3U3 CATERPILLAR FINANCIAL SE 5.45 04/15/2018 0.00 4,220,000.00 14916RAB0 CATHOLIC HEALTH INITIATI 1.6 11/01/2017 0.00 515,000.00 161571FQ2 CHAIT 2012-A7 A7 2.16 09/16/2024 ABS 4,500,000.00 4,500,000.00 166764AB6 CHEVRON CORP 2.355 12/05/2022 0.00 1,105,000.00 167560PL9 CHICAGO IL MET WTR RECLAMATIO 5.72 12/01/2038 2,685,000.00 2,685,000.00 168863AV0 REPUBLIC OF CHILE 3.875 08/05/2020 0.00 839,000.00 171232AR2 CHUBB CORP 5.75 05/15/2018 0.00 330,000.00 17248RAJ5 AT&T MOBILITY LLC 7.125 12/15/2031 0.00 4,000,000.00 17275RAH5 CISCO SYSTEMS INC 4.45 01/15/2020 0.00 1,500,000.00 172967CT6 CITIGROUP INC 5.85 12/11/2034 0.00 2,000,000.00 172967EV9 CITIGROUP INC 8.5 05/22/2019 0.00 435,000.00 172967EV9 CITIGROUP INC 8.5 05/22/2019 0.00 3,000,000.00 172967EV9 CITIGROUP INC 8.5 05/22/2019 0.00 3,880,000.00 172967EV9 CITIGROUP INC 8.5 05/22/2019 0.00 3,495,000.00 172967EV9 CITIGROUP INC 8.5 05/22/2019 0.00 3,000,000.00 172967EW7 CITIGROUP INC 8.125 07/15/2039 0.00 500,000.00 172967EW7 CITIGROUP INC 8.125 07/15/2039 0.00 2,000,000.00 172967EW7 CITIGROUP INC 8.125 07/15/2039 0.00 2,000,000.00 17305EFS9 CCCIT 2014-A6 A6 2.15 07/15/2021 ABS 2,500,000.00 2,500,000.00 17321RAB2 CGCMT 2013-GC17 A2 2.962 11/10/2046 CMBS 12,100,000.00 12,100,000.00 17323CAF4 CGCMT 2015-GC27 AA 2.944 02/10/2048 CMBS 3,890,000.00 3,890,000.00 17324KAN8 CGCMT 2015-GC35 A3 3.549 11/10/2048 CMBS 2,500,000.00 2,500,000.00 186108CH7 CLEVELAND ELECTRIC ILLU 8.875 11/15/2018 0.00 1,400,000.00 186108CJ3 CLEVELAND ELECTRIC ILLUM 5.5 08/15/2024 0.00 2,000,000.00 191219BE3 COCA-COLA REFRESH USA 6.75 09/15/2028 0.00 2,500,000.00 191219BE3 COCA-COLA REFRESH USA 6.75 09/15/2028 0.00 1,000,000.00 191219BE3 COCA-COLA REFRESH USA 6.75 09/15/2028 0.00 3,500,000.00 19122TAE9 COCA-COLA EUROPEAN PARTN 3.25 08/19/2021 0.00 1,195,000.00 199575AV3 OHIO POWER COMPANY 5.85 10/01/2035 0.00 1,000,000.00 20030NAF8 COMCAST CORP 5.65 06/15/2035 0.00 1,000,000.00 20271RAM2 COMMONWEALTH BK AUSTR NY 2.4 11/02/2020 0.00 1,830,000.00 2027A0DJ5 COMMONWEALTH BANK AUST 5 10/15/2019 0.00 5,000,000.00 2027A0DJ5 COMMONWEALTH BANK AUST 5 10/15/2019 0.00 4,750,000.00 20281PCT7 CMWLTH FING AUTH PA 6.218 06/01/2039 2,800,000.00 2,800,000.00 20281PCT7 CMWLTH FING AUTH PA 6.218 06/01/2039 800,000.00 800,000.00 20825CAF1 CONOCOPHILLIPS 5.9 10/15/2032 0.00 10,000,000.00 20825CAF1 CONOCOPHILLIPS 5.9 10/15/2032 0.00 4,000,000.00 20825CAU8 CONOCOPHILLIPS 6 01/15/2020 0.00 2,500,000.00 209111EL3 CONSOLIDATED EDISON CO O 5.85 03/15/2036 0.00 1,425,000.00 209111EQ2 CONSOLIDATED EDISON CO O 5.7 12/01/2036 0.00 15,000,000.00 209111EV1 CONS EDISON CO OF NY 7.125 12/01/2018 0.00 1,000,000.00 209111EX7 CONS EDISON CO OF NY 6.65 04/01/2019 0.00 6,000,000.00

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 209111EY5 CONSOLIDATED EDISON CO O 5.5 12/01/2039 0.00 500,000.00 210518CL8 CONSUMERS ENERGY CO 5.65 04/15/2020 0.00 1,000,000.00 210518CL8 CONSUMERS ENERGY CO 5.65 04/15/2020 0.00 2,000,000.00 21688AAE2 RABOBANK NEDERLAND NY 3.375 05/21/2025 0.00 5,000,000.00 219350AU9 CORNING INC 4.25 08/15/2020 0.00 550,000.00 22303QAL4 COVIDIEN INTL FINANCE SA 4.2 06/15/2020 0.00 750,000.00 224044BR7 COX COMMUNICATIONS INC 6.45 12/01/2036 0.00 1,805,000.00 22541HCC4 CREDIT SUISSE NEW YORK 6 02/15/2018 0.00 1,580,000.00 22546NAD6 CSMC 2008-C1 A3 6.507226 02/15/2041 CMBS 10,000,000.00 5,153,424.35 22546QAF4 CREDIT SUISSE NEW YORK 4.375 08/05/2020 0.00 5,000,000.00 22822RAR1 CROWN CASTLE TOWERS LLC 6.113 01/15/2020 0.00 1,150,000.00 23311RAC0 DCP MIDSTREAM OPERATING 9.75 03/15/2019 0.00 3,000,000.00 23311RAE6 DCP MIDSTREAM OPERATING 4.75 09/30/2021 0.00 500,000.00 233851AU8 DAIMLER FINANCE NA LLC 1.875 01/11/2018 0.00 770,000.00 234667JL8 DALLAS CNTY TX HOSP DIST 5.621 08/15/2044 2,810,000.00 2,810,000.00 250847DU1 DTE ELECTRIC CO 6.35 10/15/2032 0.00 2,160,000.00 250847DU1 DTE ELECTRIC CO 6.35 10/15/2032 0.00 840,000.00 25156PAC7 DEUTSCHE TELEKOM INT FIN 8.75 06/15/2030 0.00 175,000.00 25156PAC7 DEUTSCHE TELEKOM INT FIN 8.75 06/15/2030 0.00 5,000,000.00 25156PAC7 DEUTSCHE TELEKOM INT FIN 8.75 06/15/2030 0.00 10,000,000.00 251799AA0 DEVON ENERGY CORPORATION 7.95 04/15/2032 0.00 7,000,000.00 254709AD0 DISCOVER FINANCIAL SVS 6.45 06/12/2017 0.00 6,000,000.00 254709AD0 DISCOVER FINANCIAL SVS 6.45 06/12/2017 0.00 750,000.00 25470DAC3 DISCOVERY COMMUNICATIONS 5.05 06/01/2020 0.00 1,975,000.00 25746UAV1 DOMINION RESOURCES INC 5.95 06/15/2035 0.00 2,000,000.00 260543BJ1 DOW CHEMICAL CO/THE 7.375 11/01/2029 0.00 5,000,000.00 260543CC5 DOW CHEMICAL CO/THE 4.25 11/15/2020 0.00 1,000,000.00 260543CC5 DOW CHEMICAL CO/THE 4.25 11/15/2020 0.00 1,000,000.00 263534BZ1 E.I. DU PONT DE NEMOURS 4.625 01/15/2020 0.00 2,330,000.00 263534BZ1 E.I. DU PONT DE NEMOURS 4.625 01/15/2020 0.00 470,000.00 263901AA8 DUKE ENERGY INDIANA INC 6.35 08/15/2038 0.00 2,000,000.00 26441CAL9 DUKE ENERGY CORP 3.95 10/15/2023 0.00 999,000.00 26441YAY3 DUKE REALTY LP 3.75 12/01/2024 0.00 1,090,000.00 26442CAH7 DUKE ENERGY CAROLINAS 5.3 02/15/2040 0.00 4,000,000.00 26875PAD3 EOG RESOURCES INC 5.625 06/01/2019 0.00 1,470,000.00 26875PAE1 EOG RESOURCES INC 4.4 06/01/2020 0.00 6,880,000.00 26875PAE1 EOG RESOURCES INC 4.4 06/01/2020 0.00 5,620,000.00 26875PAG6 EOG RESOURCES INC 4.1 02/01/2021 0.00 2,000,000.00 26884ABD4 ERP OPERATING LP 3.375 06/01/2025 0.00 1,845,000.00 29250RAN6 ENBRIDGE ENERGY PARTNERS 6.5 04/15/2018 0.00 1,025,000.00 29250RAS5 ENBRIDGE ENERGY PARTNERS 5.2 03/15/2020 0.00 500,000.00 29364DAR1 ENTERGY ARKANSAS INC 3.05 06/01/2023 0.00 570,000.00 293791AP4 ENTERPRISE PRODUCTS OPER 6.65 10/15/2034 0.00 800,000.00

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 31394LXV9 FHR 2703 CB 4 11/15/2018 CMO 17,000,000.00 719,319.66 31395JMW3 FHR 2892 DB 4.5 11/15/2019 CMO 20,000,000.00 1,797,181.60 31395TVS0 FHR 2970 DY 5.5 05/15/2025 CMO 5,000,000.00 1,388,700.70 31396FHT3 FHR 3072 AG 5.5 11/15/2025 CMO 10,000,000.00 2,537,245.70 31396FQC0 FHR 3080 KB 5.5 12/15/2025 CMO 7,000,000.00 1,626,741.79 31396JHL2 FHR 3132 LB 5.5 03/15/2026 CMO 7,395,000.00 2,003,176.85 31396JNZ4 FHR 3123 CJ 5.5 03/15/2026 CMO 7,000,000.00 1,636,490.76 31396JNZ4 FHR 3123 CJ 5.5 03/15/2026 CMO 4,000,000.00 935,137.59 31397S2C7 FNR 2011-37 NA 4.5 04/25/2038 CMO 9,000,000.00 2,652,957.99 31398NNJ9 FNR 2010-115 PN 4 10/25/2040 CMO 7,000,000.00 7,000,000.00 31398R2D6 FNR 2010-80 AD 5 03/25/2039 CMO 5,764,806.00 1,307,990.10 31398VTP1 FHR 3659 BD 5 01/15/2037 CMO 7,000,000.00 5,513,949.77 31402CU67 FNCL POOL 725205 39,000,000.00 1,964,804.79 31402RJV2 FNCL POOL 735676 49,530,000.00 2,623,767.54 31405N5Y7 FNCL POOL 794763 14,082,416.00 547,021.05 31409JFC9 FNCI POOL 872363 10,035,543.00 360,097.97 3140EWXM2 FNCI POOL BC2483 1,000,000.00 867,253.46 31410FSB2 FN POOL 888014 11,500,000.00 7,238,967.89 31413XEF6 FN POOL 958334 9,000,000.00 8,279,222.13 31413XEF6 FN POOL 958334 7,000,000.00 6,439,394.99 31416BLD8 FNCL POOL 995024 19,400,000.00 1,478,416.98 31620MAR7 FIDELITY NATIONAL INFORM 5 10/15/2025 0.00 365,000.00 31677QBB4 FIFTH THIRD BANK 2.375 04/25/2019 0.00 2,950,000.00 337358BA2 WACHOVIA CORP 7.5 04/15/2035 0.00 250,000.00 337358BA2 WACHOVIA CORP 7.5 04/15/2035 0.00 1,000,000.00 341099CM9 DUKE ENERGY FLORIDA LLC 4.55 04/01/2020 0.00 2,500,000.00 34530MAA7 FORDR 2014-1 A 2.26 11/15/2025 ABS 4,950,000.00 4,950,000.00 34530PAE2 FORDO 2014-C A4 1.56 02/15/2020 ABS 1,290,000.00 1,290,000.00 35177PAT4 ORANGE SA 5.375 07/08/2019 0.00 530,000.00 361448AQ6 GATX CORP 3.9 03/30/2023 0.00 1,200,000.00 36198EAD7 GSMS 2013-GC13 A4 3.871 07/10/2046 CMBS 10,000,000.00 10,000,000.00 36198EAE5 GSMS 2013-GC13 A 4.03287 07/10/2046 CMBS 6,000,000.00 6,000,000.00 36228FEC6 GSMPS 2001-2 A 7.5 06/19/2032 WHOLE LOAN 5,000,000.00 278,812.15 36248GAC4 GSMS 2013-GC16 A3 4.244 11/10/2046 CMBS 5,000,000.00 5,000,000.00 36248GAC4 GSMS 2013-GC16 A3 4.244 11/10/2046 CMBS 10,000,000.00 10,000,000.00 36250GAN5 GSMS 2015-GC30 A3 3.119 05/10/2050 CMBS 8,500,000.00 8,500,000.00 36252AAB2 GSMS 2015-GS1 A2 3.47 11/10/2048 CMBS 1,800,000.00 1,800,000.00 36252RAJ8 GSMS 2014-GC18 A3 3.801 01/10/2047 CMBS 5,000,000.00 5,000,000.00 36252RAJ8 GSMS 2014-GC18 A3 3.801 01/10/2047 CMBS 6,500,000.00 6,500,000.00 36252RAM1 GSMS 2014-GC18 A4 4.074 01/10/2047 CMBS 10,000,000.00 10,000,000.00 36252TAQ8 GSMS 2016-GS2 A3 2.791 05/10/2049 CMBS 3,000,000.00 3,000,000.00 368770AA1 GENERAL AMERICAN LIFE 7.625 01/15/2024 0.00 1,750,000.00 368770AA1 GENERAL AMERICAN LIFE 7.625 01/15/2024 0.00 7,380,000.00

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 368770AA1 GENERAL AMERICAN LIFE 7.625 01/15/2024 0.00 6,250,000.00 369550AR9 GENERAL DYNAMICS CORP 3.875 07/15/2021 0.00 150,000.00 36962G3A0 GENERAL ELEC CAP CORP 6.15 08/07/2037 0.00 1,145,000.00 36962GXZ2 GENERAL ELEC CAP CORP 6.75 03/15/2032 0.00 10,000,000.00 36962GXZ2 GENERAL ELEC CAP CORP 6.75 03/15/2032 0.00 3,750,000.00 375558BD4 GILEAD SCIENCES INC 4.75 03/01/2046 0.00 100,000.00 375558BM4 GILEAD SCIENCES INC 2.95 03/01/2027 0.00 11,000,000.00 375558BM4 GILEAD SCIENCES INC 2.95 03/01/2027 0.00 5,000,000.00 380881CP5 GCCT 2015-2A A 2.02 04/15/2022 ABS 10,000,000.00 10,000,000.00 38141EA66 GOLDMAN SACHS GROUP INC 6 06/15/2020 0.00 900,000.00 38141GCU6 GOLDMAN SACHS GROUP INC 6.125 02/15/2033 0.00 2,000,000.00 38141GFM1 GOLDMAN SACHS GROUP INC 6.15 04/01/2018 0.00 2,375,000.00 38141GFM1 GOLDMAN SACHS GROUP INC 6.15 04/01/2018 0.00 2,550,000.00 38141GGS7 GOLDMAN SACHS GROUP INC 5.75 01/24/2022 0.00 2,780,000.00 38141GRD8 GOLDMAN SACHS GROUP INC 3.625 01/22/2023 0.00 13,000,000.00 38141GRD8 GOLDMAN SACHS GROUP INC 3.625 01/22/2023 0.00 10,000,000.00 38144LAB6 GOLDMAN SACHS GROUP INC 6.25 09/01/2017 0.00 3,570,000.00 38374MDX4 GNR 2005-75 DA 5 07/16/2034 CMO 50,000,000.00 2,620,765.70 38374MDX4 GNR 2005-75 DA 5 07/16/2034 CMO 10,000,000.00 524,153.14 38376MBW6 GNR 2014-5 BP 4 01/16/2044 CMO 5,858,250.00 5,858,250.00 38377XC26 GNR 2011-133 KA 4 05/20/2037 CMO 5,400,000.00 3,765,832.93 38379GAT4 GNR 2014-141 GZ 3.5 09/20/2044 CMO 5,552,498.00 6,077,132.66 38379LUA2 GNR 2015-56 VL 3.5 04/16/2028 CMO 5,000,000.00 4,343,087.27 38379TCP2 GNR 2015-184 ED 3.5 09/20/2041 CMO 7,306,909.00 7,306,909.00 40414LAJ8 HCP INC 4.25 11/15/2023 0.00 2,375,000.00 40414LAN9 HCP INC 4 06/01/2025 0.00 4,000,000.00 404280AK5 HSBC HOLDINGS PLC 5.1 04/05/2021 0.00 1,610,000.00 4042Q1AA5 HSBC BANK USA 5.875 11/01/2034 0.00 4,000,000.00 4042Q1AA5 HSBC BANK USA 5.875 11/01/2034 0.00 4,000,000.00 4042Q1AB3 HSBC BANK USA 5.625 08/15/2035 0.00 2,000,000.00 406216AW1 HALLIBURTON CO 6.7 09/15/2038 0.00 895,000.00 406216AY7 HALLIBURTON CO 7.45 09/15/2039 0.00 1,500,000.00 406216AY7 HALLIBURTON CO 7.45 09/15/2039 0.00 2,000,000.00 41283LAG0 HARLEY-DAVIDSON FINL SER 2.25 01/15/2019 0.00 1,805,000.00 42217KAY2 HEALTH CARE REIT INC 4.125 04/01/2019 0.00 3,500,000.00 42218SAC2 HEALTH CARE SVCS CORP 4.7 01/15/2021 0.00 1,225,000.00 428236BF9 HEWLETT-PACKARD CO 3.75 12/01/2020 0.00 321,000.00 437076AS1 HOME DEPOT INC 5.875 12/16/2036 0.00 4,000,000.00 438506AS6 HONEYWELL INC 6.625 06/15/2028 0.00 1,000,000.00 438506AS6 HONEYWELL INC 6.625 06/15/2028 0.00 5,000.00 438506AS6 HONEYWELL INC 6.625 06/15/2028 0.00 2,000,000.00 438516BB1 HONEYWELL INTERNATIONAL 5.375 03/01/2041 0.00 1,335,000.00 44106MAQ5 HOSPITALITY PROP TRUST 5 08/15/2022 0.00 3,500,000.00

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 448055AF0 HUSKY ENERGY INC 7.25 12/15/2019 0.00 770,000.00 454889AM8 INDIANA MICHIGAN POWER 6.05 03/15/2037 0.00 5,000,000.00 458140AJ9 INTEL CORP 3.3 10/01/2021 0.00 590,000.00 45866FAA2 INTERCONTINENTALEXCHANGE 4 10/15/2023 0.00 3,000,000.00 45866FAA2 INTERCONTINENTALEXCHANGE 4 10/15/2023 0.00 2,000,000.00 45866FAA2 INTERCONTINENTALEXCHANGE 4 10/15/2023 0.00 5,000,000.00 459200BB6 IBM CORP 5.875 11/29/2032 0.00 10,000,000.00 46051MAC6 INTERNATIONAL TRANSMISSI 6.125 03/31/2036 0.00 1,600,000.00 465685AJ4 ITC HOLDINGS CORP 3.65 06/15/2024 0.00 2,000,000.00 46590LAS1 JPMDB 2016-C2 A3A 2.8813 06/15/2049 CMBS 3,000,000.00 3,000,000.00 46625HHQ6 JPMORGAN CHASE & CO 4.95 03/25/2020 0.00 5,500,000.00 46625HHS2 JPMORGAN CHASE & CO 4.4 07/22/2020 0.00 8,000,000.00 46625HHS2 JPMORGAN CHASE & CO 4.4 07/22/2020 0.00 172,000.00 46625HHS2 JPMORGAN CHASE & CO 4.4 07/22/2020 0.00 2,265,000.00 46625HHS2 JPMORGAN CHASE & CO 4.4 07/22/2020 0.00 5,563,000.00 46625HJH4 JPMORGAN CHASE & CO 3.2 01/25/2023 0.00 9,000,000.00 46625HKC3 JPMORGAN CHASE & CO 3.125 01/23/2025 0.00 5,000,000.00 46625HQW3 JPMORGAN CHASE & CO 3.3 04/01/2026 0.00 9,500,000.00 46625HQW3 JPMORGAN CHASE & CO 3.3 04/01/2026 0.00 500,000.00 46625HRV4 JPMORGAN CHASE & CO 2.95 10/01/2026 0.00 1,880,000.00 46631QAD4 JPMCC 2007-CB20 A4 5.794 02/12/2051 CMBS 4,000,000.00 1,156,018.96 46640UAC6 JPMBB 2013-C17 A3 3.9277 01/15/2047 CMBS 5,000,000.00 5,000,000.00 46640UAD4 JPMBB 2013-C17 A4 4.1989 01/15/2047 CMBS 5,000,000.00 5,000,000.00 46640UAD4 JPMBB 2013-C17 A4 4.1989 01/15/2047 CMBS 5,000,000.00 5,000,000.00 46642CBE9 JPMCC 2014-C20 A2 2.8716 07/15/2047 CMBS 8,644,000.00 8,644,000.00 46643GAD2 JPMBB 2014-C24 A4 3.3726 11/15/2047 CMBS 1,082,000.00 1,082,000.00 46643GAD2 JPMBB 2014-C24 A4 3.3726 11/15/2047 CMBS 8,570,000.00 8,570,000.00 46643GAD2 JPMBB 2014-C24 A4 3.3726 11/15/2047 CMBS 2,000,000.00 2,000,000.00 46643PBF6 JPMBB 2014-C25 AS 3.4074 11/15/2047 CMBS 1,800,000.00 1,800,000.00 46644YAU4 JPMBB 2015-C31 A3 3.8014 08/15/2048 CMBS 4,810,000.00 4,810,000.00 46645LAZ0 JPMBB 2016-C1 ASB 3.3158 03/15/2049 CMBS 10,000,000.00 10,000,000.00 478045AA5 JOHN SEVIER COMB CYCLE 4.626 01/15/2042 1,670,000.00 1,553,479.30 478111AB3 JOHNS HOPKINS HEALTH SY 2.767 05/15/2023 0.00 570,000.00 48203RAF1 JUNIPER NETWORKS INC 4.6 03/15/2021 0.00 145,000.00 48203RAF1 JUNIPER NETWORKS INC 4.6 03/15/2021 0.00 360,000.00 485134BJ8 KANSAS CITY POWER & LT 5.85 06/15/2017 0.00 4,545,000.00 485134BJ8 KANSAS CITY POWER & LT 5.85 06/15/2017 0.00 855,000.00 49151E4G5 KENTUCKY ST PROPERTY & BLDGS 6.155 11/1/2029 833,000.00 833,000.00 49151E4G5 KENTUCKY ST PROPERTY & BLDGS 6.155 11/1/2029 2,917,000.00 2,917,000.00 49245PAA4 KERRY GROUP FIN SERVICES 3.2 04/09/2023 0.00 5,165,000.00 49327M2F0 KEY BANK NA 2.5 12/15/2019 0.00 8,000,000.00 494368BF9 KIMBERLY-CLARK CORP 3.875 03/01/2021 0.00 385,000.00 494368BF9 KIMBERLY-CLARK CORP 3.875 03/01/2021 0.00 1,355,000.00

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 494550AJ5 KINDER MORGAN ENER PART 7.4 03/15/2031 0.00 1,000,000.00 494550AJ5 KINDER MORGAN ENER PART 7.4 03/15/2031 0.00 4,000,000.00 494550AV8 KINDER MORGAN ENER PART 6.5 02/01/2037 0.00 800,000.00 494550BD7 KINDER MORGAN ENER PART 6.5 09/01/2039 0.00 700,000.00 500255AN4 KOHL`S CORPORATION 6 01/15/2033 0.00 5,000,000.00 500255AN4 KOHL`S CORPORATION 6 01/15/2033 0.00 5,063,000.00 50075NAU8 MONDELEZ INTERNATIONAL 6.125 02/01/2018 0.00 2,750,000.00 50075NAV6 MONDELEZ INTERNATIONAL 6.125 08/23/2018 0.00 2,000,000.00 50076QAU0 KRAFT FOODS GROUP INC 5.375 02/10/2020 0.00 1,047,000.00 501044CG4 KROGER CO/THE 6.4 08/15/2017 0.00 175,000.00 50180LAC4 LBUBS 2008-C1 A2 6.2923 04/15/2041 CMBS 1,678,000.00 1,165,567.60 50540RAJ1 LAB CORP OF AMER HLDGS 4.625 11/15/2020 0.00 2,980,000.00 52109PAE5 LBUBS 2007-C6 A4 5.858 07/15/2040 CMBS 4,115,000.00 1,456,828.66 52109RBM2 LBUBS 2007-C7 A3 5.866 09/15/2045 CMBS 5,000,000.00 2,589,439.26 532457AZ1 ELI LILLY & CO 5.5 03/15/2027 0.00 2,000,000.00 534187BA6 LINCOLN NATIONAL CORP 7 06/15/2040 0.00 815,000.00 534187BA6 LINCOLN NATIONAL CORP 7 06/15/2040 0.00 890,000.00 534187BA6 LINCOLN NATIONAL CORP 7 06/15/2040 0.00 1,500,000.00 534187BA6 LINCOLN NATIONAL CORP 7 06/15/2040 0.00 685,000.00 53944VAA7 LLOYDS BANK PLC 2.3 11/27/2018 0.00 1,255,000.00 539830AR0 LOCKHEED MARTIN CORP 6.15 09/01/2036 0.00 1,450,000.00 539830AR0 LOCKHEED MARTIN CORP 6.15 09/01/2036 0.00 1,050,000.00 539830AW9 LOCKHEED MARTIN CORP 5.72 06/01/2040 0.00 3,354,000.00 539830AW9 LOCKHEED MARTIN CORP 5.72 06/01/2040 0.00 3,049,000.00 540424AQ1 LOEWS CORP 2.625 05/15/2023 0.00 870,000.00 540424AQ1 LOEWS CORP 2.625 05/15/2023 0.00 315,000.00 540424AQ1 LOEWS CORP 2.625 05/15/2023 0.00 9,000,000.00 544435C32 LOS ANGELES CA DEPT OF ARPTS 6.582 05/15/2039 2,000,000.00 2,000,000.00 544435C32 LOS ANGELES CA DEPT OF ARPTS 6.582 05/15/2039 500,000.00 500,000.00 544525NZ7 LOS ANGELES CA DEPT OF WTR & P 6.008 07/01/2039 1,565,000.00 1,565,000.00 544646XZ0 LOS ANGELES CA UNIF SCH DIST 5.75 07/01/2034 2,000,000.00 2,000,000.00 544646XZ0 LOS ANGELES CA UNIF SCH DIST 5.75 07/01/2034 7,000,000.00 7,000,000.00 544646ZR6 LOS ANGELES CA UNIF SCH DIST 6.758 07/01/2034 2,420,000.00 2,420,000.00 544646ZR6 LOS ANGELES CA UNIF SCH DIST 6.758 07/01/2034 400,000.00 400,000.00 544646ZR6 LOS ANGELES CA UNIF SCH DIST 6.758 07/01/2034 1,265,000.00 1,265,000.00 548661CR6 LOWES COMPANIES INC 5.8 04/15/2040 0.00 935,000.00 548661DJ3 LOWE`S COS INC 4.375 09/15/2045 0.00 55,000.00 564759QB7 MANUF & TRADERS TRUST CO VAR 12/01/2021 0.00 3,000,000.00 56501RAB2 MANULIFE FINANCIAL CORP 4.9 09/17/2020 0.00 2,525,000.00 56501RAC0 MANULIFE FINANCIAL CORP 4.15 03/04/2026 0.00 4,000,000.00 56501RAD8 MANULIFE FINANCIAL CORP 5.375 03/04/2046 0.00 1,845,000.00 565849AD8 MARATHON OIL CORP 6 10/01/2017 0.00 5,715,000.00 574300HZ5 MARYLAND ST TRANSPRTN AUTH T 5.888 07/01/2043 375,000.00 375,000.00

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 575579VP9 MASSACHUSETTS ST BAY TRANSPR 5.569 07/01/2039 1,335,000.00 1,335,000.00 575767AD0 MASS MUTUAL LIFE 7.5 03/01/2024 2,000,000.00 2,000,000.00 575767AD0 MASS MUTUAL LIFE 7.5 03/01/2024 8,000,000.00 8,000,000.00 57604P5P5 MASSACHUSETTS ST WTR POLL AB 5.192 08/01/2040 1,500,000.00 1,500,000.00 57604P5P5 MASSACHUSETTS ST WTR POLL AB 5.192 08/01/2040 2,625,000.00 2,625,000.00 585055AS5 MEDTRONIC INC 4.45 03/15/2020 0.00 955,000.00 585055AS5 MEDTRONIC INC 4.45 03/15/2020 0.00 3,505,000.00 585055AT3 MEDTRONIC INC 5.55 03/15/2040 0.00 2,090,000.00 585055AT3 MEDTRONIC INC 5.55 03/15/2040 0.00 525,000.00 589331AQ0 MERCK SHARP & DOHME CORP 5.85 06/30/2039 0.00 3,680,000.00 589331AQ0 MERCK SHARP & DOHME CORP 5.85 06/30/2039 0.00 1,875,000.00 589331AQ0 MERCK SHARP & DOHME CORP 5.85 06/30/2039 0.00 750,000.00 589331AQ0 MERCK SHARP & DOHME CORP 5.85 06/30/2039 0.00 1,875,000.00 59156RAX6 METLIFE INC 4.75 02/08/2021 0.00 355,000.00 59156RAX6 METLIFE INC 4.75 02/08/2021 0.00 120,000.00 59156RBB3 METLIFE INC 4.368 09/15/2023 0.00 4,255,000.00 592112DR4 MET GOVT NASHVILLE & DAVIDSON 5.707 07/01/2034 380,000.00 380,000.00 592112DR4 MET GOVT NASHVILLE & DAVIDSON 5.707 07/01/2034 955,000.00 955,000.00 59259NZH9 MET TRANSPRTN AUTH NY DEDICATE 7.336 11/15/2039 285,000.00 285,000.00 59259NZH9 MET TRANSPRTN AUTH NY DEDICATE 7.336 11/15/2039 217,000.00 217,000.00 59259YBF5 MET TRANSPRTN AUTH NY REVENU 5.871 11/15/2039 800,000.00 800,000.00 595620AB1 MIDAMERICAN ENERGY CO 6.75 12/30/2031 0.00 1,000,000.00 595620AH8 MIDAMERICAN ENERGY CO 5.3 03/15/2018 0.00 2,800,000.00 59562HAJ7 MIDAMERICAN FUNDING LLC 6.927 03/01/2029 0.00 980,000.00 606822AD6 MITSUBISHI UFJ FIN GRP 3.85 03/01/2026 0.00 3,500,000.00 60688XAC4 MIZUHO BANK LTD 2.45 04/16/2019 0.00 4,000,000.00 61690AAD6 MSBAM 2015-C27 A3 3.473 12/15/2047 CMBS 1,200,000.00 1,200,000.00 61690GAF8 MSBAM 2014-C14 A5 4.064 02/15/2047 CMBS 8,600,000.00 8,600,000.00 6174466Q7 MORGAN STANLEY 6.625 04/01/2018 0.00 5,000,000.00 6174466Q7 MORGAN STANLEY 6.625 04/01/2018 0.00 500,000.00 6174468C6 MORGAN STANLEY 4 07/23/2025 0.00 1,205,000.00 617446HD4 MORGAN STANLEY 7.25 04/01/2032 0.00 2,000,000.00 61746BDJ2 MORGAN STANLEY 3.75 02/25/2023 0.00 9,000,000.00 61746BDZ6 MORGAN STANLEY 3.875 01/27/2026 0.00 1,290,000.00 61747YCG8 MORGAN STANLEY 7.3 05/13/2019 0.00 2,500,000.00 61747YCG8 MORGAN STANLEY 7.3 05/13/2019 0.00 2,500,000.00 61980AAC7 MOTIVA ENTERPRISES LLC 5.75 01/15/2020 0.00 250,000.00 61980AAC7 MOTIVA ENTERPRISES LLC 5.75 01/15/2020 0.00 1,250,000.00 626207YF5 MUNI ELEC AUTH OF GEORGIA 6.637 04/01/2057 945,000.00 945,000.00 626207YF5 MUNI ELEC AUTH OF GEORGIA 6.637 04/01/2057 3,030,000.00 3,030,000.00 626207YF5 MUNI ELEC AUTH OF GEORGIA 6.637 04/01/2057 429,000.00 429,000.00 637432CT0 NATIONAL RURAL UTIL COOP 8 03/01/2032 0.00 10,000,000.00 637432CT0 NATIONAL RURAL UTIL COOP 8 03/01/2032 0.00 3,000,000.00

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 63946BAD2 NBCUNIVERSAL MEDIA LLC 5.15 04/30/2020 0.00 3,330,000.00 641423BW7 NEVADA POWER CO 6.5 08/01/2018 0.00 1,390,000.00 641423BZ0 NEVADA POWER CO 5.375 09/15/2040 0.00 2,500,000.00 64352VEF4 NCHET 2003-5 AI7 5.15 11/25/2033 ABS 4,500,000.00 82,380.90 646139W35 NEW JERSEY ST TURNPIKE AUTH 7.414 01/01/2040 739,000.00 739,000.00 646139W35 NEW JERSEY ST TURNPIKE AUTH 7.414 01/01/2040 591,200.00 591,200.00 646139W35 NEW JERSEY ST TURNPIKE AUTH 7.414 01/01/2040 3,696,000.00 3,696,000.00 64952GAF5 NEW YORK LIFE INSURANCE 6.75 11/15/2039 0.00 1,270,000.00 64952GAF5 NEW YORK LIFE INSURANCE 6.75 11/15/2039 0.00 4,445,000.00 64952GAF5 NEW YORK LIFE INSURANCE 6.75 11/15/2039 0.00 3,175,000.00 64971WA75 NEW YORK CITY TRANSITIONAL FINANCE 2.8 01/02/2026 0.00 2,500,000.00 649902ZQ9 NEW YORK ST DORM AUTH ST PERSO 5.628 03/15/2039 1,875,000.00 1,875,000.00 649902ZQ9 NEW YORK ST DORM AUTH ST PERSO 5.628 03/15/2039 1,875,000.00 1,875,000.00 650035TD0 NEW YORK ST URBAN DEV CORP REV 5.77 03/15/2039 1,275,000.00 1,275,000.00 65473QAR4 NISOURCE FINANCE CORP 5.45 09/15/2020 0.00 877,000.00 65504LAC1 NOBLE HOLDING INTL LTD 4.9 08/01/2020 0.00 134,000.00 65538PAD0 NAA 2007-1 1 5.957 03/25/2047 WHOLE LOAN 9,302,000.00 3,659,472.14 655844AF5 NORFOLK SOUTHERN CORP 7.05 05/01/2037 0.00 750,000.00 66285WFB7 N TX TOLLWAY AUTH REVENUE 6.718 1/1/2049 2,070,000.00 2,070,000.00 66285WFB7 N TX TOLLWAY AUTH REVENUE 6.718 1/1/2049 3,105,000.00 3,105,000.00 665772CA5 NORTHERN STATES PWR-MINN 5.25 07/15/2035 0.00 3,000,000.00 665772CD9 NORTHERN STATES PWR-MINN 5.25 03/01/2018 0.00 1,800,000.00 665789AW3 NORTHERN STATES PWR-WISC 6.375 09/01/2038 0.00 520,000.00 665789AW3 NORTHERN STATES PWR-WISC 6.375 09/01/2038 0.00 2,090,000.00 665859AM6 NORTHERN TRUST CORP 3.375 08/23/2021 0.00 1,185,000.00 665859AM6 NORTHERN TRUST CORP 3.375 08/23/2021 0.00 970,000.00 666807AW2 NORTHROP GRUMMAN SYSTEMS 7.75 02/15/2031 0.00 5,000,000.00 666807AW2 NORTHROP GRUMMAN SYSTEMS 7.75 02/15/2031 0.00 5,000,000.00 668444AC6 NORTHWESTERN UNIVERSITY 4.643 12/01/2044 580,000.00 580,000.00 66989HAD0 NOVARTIS CAPITAL CORP 4.4 04/24/2020 0.00 520,000.00 66989HAD0 NOVARTIS CAPITAL CORP 4.4 04/24/2020 0.00 2,085,000.00 674599CC7 OCCIDENTAL PETROLEUM COR 3.125 02/15/2022 0.00 1,200,000.00 68233JAH7 ONCOR ELECTRIC DELIVERY 5.25 09/30/2040 0.00 1,930,000.00 68233JAH7 ONCOR ELECTRIC DELIVERY 5.25 09/30/2040 0.00 1,570,000.00 68389XAM7 ORACLE CORP 5.375 07/15/2040 0.00 2,795,000.00 68403BAD7 OOMLT 2007-FXD2 2A3 5.715 03/25/2037 ABS 3,000,000.00 2,001,517.67 68607DNL5 OREGON ST DEPT OF TRANSPRTN HI 5.834 11/15/2034 280,000.00 280,000.00 68607DNL5 OREGON ST DEPT OF TRANSPRTN HI 5.834 11/15/2034 1,120,000.00 1,120,000.00 690742AB7 OWENS CORNING 7 12/01/2036 0.00 445,000.00 690742AB7 OWENS CORNING 7 12/01/2036 0.00 555,000.00 693476BL6 PNC FINANCIAL SERVICES 4.375 08/11/2020 0.00 5,585,000.00 69349LAC2 PNC BANK NA 4.875 09/21/2017 0.00 4,000,000.00

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 69351UAM5 PPL ELECTRIC UTILITIES 6.25 05/15/2039 0.00 500,000.00 694308GE1 PACIFIC GAS & ELECTRIC 6.05 03/01/2034 0.00 5,000,000.00 694308GJ0 PACIFIC GAS & ELECTRIC 5.8 03/01/2037 0.00 1,350,000.00 694308GL5 PACIFIC GAS & ELECTRIC 5.625 11/30/2017 0.00 780,000.00 694308GL5 PACIFIC GAS & ELECTRIC 5.625 11/30/2017 0.00 69,000.00 694308GM3 PACIFIC GAS & ELECTRIC 6.35 02/15/2038 0.00 450,000.00 709629AJ8 PENTAIR FINANCE SA 5 05/15/2021 0.00 1,225,000.00 713409AC4 PEPSI-COLA MET BOTTLING 7 03/01/2029 0.00 5,000,000.00 713448DD7 PEPSICO INC 4.45 04/14/2046 0.00 350,000.00 713448DP0 PEPSICO INC 3.45 10/06/2046 0.00 2,000,000.00 713448DP0 PEPSICO INC 3.45 10/06/2046 0.00 3,000,000.00 717081DM2 PFIZER INC 3.4 05/15/2024 0.00 3,000,000.00 717081EA7 PFIZER INC 3 12/15/2026 0.00 10,000,000.00 718172AA7 PHILIP MORRIS INTL INC 5.65 05/16/2018 0.00 5,000,000.00 718172AC3 PHILIP MORRIS INTL INC 6.375 05/16/2038 0.00 570,000.00 718546AC8 PHILLIPS 66 4.3 04/01/2022 0.00 1,040,000.00 72650RAW2 PLAINS ALL AMER PIPELINE 5.75 01/15/2020 0.00 2,400,000.00 72650RAZ5 PLAINS ALL AMER PIPELINE 3.65 06/01/2022 0.00 530,000.00 73358WEK6 PORT AUTH OF NEW YORK & NEW JE 4.926 10/01/51 3,000,000.00 3,000,000.00 737679DB3 POTOMAC ELECTRIC POWER 6.5 11/15/2037 0.00 500,000.00 74005PAY0 PRAXAIR INC 4.05 03/15/2021 0.00 3,490,000.00 742718CB3 PROCTER & GAMBLE CO 5.5 02/01/2034 0.00 1,600,000.00 742718DB2 PROCTER & GAMBLE CO/THE 5.8 08/15/2034 0.00 3,000,000.00 742718DB2 PROCTER & GAMBLE CO/THE 5.8 08/15/2034 0.00 1,000,000.00 743263AG0 PROGRESS ENERGY INC 7 10/30/2031 0.00 500,000.00 74432QAH8 PRUDENTIAL FINANCIAL INC 5.4 06/13/2035 0.00 950,000.00 74432QAH8 PRUDENTIAL FINANCIAL INC 5.4 06/13/2035 0.00 2,050,000.00 74432QBG9 PRUDENTIAL FINANCIAL INC 7.375 06/15/2019 0.00 2,460,000.00 74432QBM6 PRUDENTIAL FINANCIAL INC 5.375 06/21/2020 0.00 2,345,000.00 74456QAU0 PUB SVC ELEC & GAS 5.375 11/01/2039 0.00 370,000.00 74456QAU0 PUB SVC ELEC & GAS 5.375 11/01/2039 0.00 850,000.00 745332CC8 PUGET SOUND ENERGY INC 5.764 07/15/2040 0.00 1,000,000.00 74727PAK7 STATE OF QATAR 5.25 01/20/2020 0.00 3,570,000.00 747525AK9 QUALCOMM INC 4.8 05/20/2045 0.00 650,000.00 749770AQ6 RABOBANK NEDERLAND VAR 0.00 9,655,000.00 767201AH9 RIO TINTO FIN USA LTD 9 05/01/2019 0.00 3,000,000.00 767201AQ9 RIO TINTO FIN USA LTD 3.75 09/20/2021 0.00 830,000.00 771196AU6 ROCHE HLDGS INC 7 03/01/2039 0.00 5,000,000.00 771196AU6 ROCHE HLDGS INC 7 03/01/2039 0.00 6,250,000.00 771196AU6 ROCHE HLDGS INC 7 03/01/2039 0.00 2,000,000.00 771367CA5 ROCHESTER GAS & ELECTRIC 8 12/15/2033 0.00 670,000.00 775109AK7 ROGERS COMMUNICATIONS IN 6.8 08/15/2018 0.00 2,500,000.00 78387GAM5 AT&T INC 6.45 06/15/2034 0.00 3,000,000.00

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 78446XAB1 SLMA 2012-B A2 3.48 10/15/2030 ABS 1,000,000.00 413,990.94 79741TAR5 SAN DIEGO CNTY CA WTR AUTH FIN 6.138 5/1/2049 2,200,000.00 2,200,000.00 79741TAR5 SAN DIEGO CNTY CA WTR AUTH FIN 6.138 5/1/2049 600,000.00 600,000.00 797440BF0 SAN DIEGO G & E 5.35 05/15/2035 0.00 250,000.00 797440BH6 SAN DIEGO G & E 6 06/01/2026 0.00 2,000,000.00 806854AH8 SCHLUMBERGER INVESTMENT 3.65 12/01/2023 0.00 5,000,000.00 80685PAA6 SCHLUMBERGER NORGE AS 4.2 01/15/2021 0.00 1,665,000.00 80685QAA4 SCHLUMBERGER OILFIELD UK 4.2 01/15/2021 0.00 1,665,000.00 828807CN5 SIMON PROPERTY GROUP LP 2.75 02/01/2023 0.00 2,063,000.00 828807CN5 SIMON PROPERTY GROUP LP 2.75 02/01/2023 0.00 4,937,000.00 828807CT2 SIMON PROPERTY GROUP LP 4.25 10/01/2044 0.00 400,000.00 828807CW5 SIMON PROPERTY GROUP LP 3.3 01/15/2026 0.00 5,000,000.00 831641EK7 SBIC 2008-P10A 1 5.902 02/10/2018 ABS 2,910,000.00 149,707.90 832696AB4 SMUCKER (J.M.) CO 3.5 10/15/2021 0.00 1,285,000.00 83368RAD4 SOCIETE GENERALE 2.625 10/01/2018 0.00 2,000,000.00 857477AG8 STATE STREET CORP 4.375 03/07/2021 0.00 6,000,000.00 857477AM5 STATE STREET CORP 3.7 11/20/2023 0.00 925,000.00 857477AW3 STATE STREET CORP 2.65 05/19/2026 0.00 7,500,000.00 85771PAN2 STATOIL ASA 3.7 03/01/2024 0.00 1,250,000.00 85771SAA4 STATOIL ASA 5.25 04/15/2019 0.00 990,000.00 86562MAC4 SUMITOMO MITSUI FINL GR 3.784 03/09/2026 0.00 2,860,000.00 867229AD8 SUNCOR ENERGY INC 5.95 12/01/2034 0.00 6,447,000.00 867229AD8 SUNCOR ENERGY INC 5.95 12/01/2034 0.00 5,000,000.00 87165LAA9 SYNCT 2014-1 A 1.61 11/15/2020 ABS 3,000,000.00 3,000,000.00 872882AC9 TSMC GLOBAL LTD 1.625 04/03/2018 0.00 670,000.00 87425EAL7 TALISMAN ENERGY 7.75 06/01/2019 0.00 430,000.00 87425EAL7 TALISMAN ENERGY 7.75 06/01/2019 0.00 1,250,000.00 875127AV4 TAMPA ELECTRIC CO 6.55 05/15/2036 0.00 1,000,000.00 87612EAK2 TARGET CORP 6.35 11/01/2032 0.00 3,500,000.00 87612EAS5 TARGET CORP 6 01/15/2018 0.00 5,000,000.00 878091BC0 TEACHERS INSUR & ANNUITY 6.85 12/16/2039 0.00 1,115,000.00 878091BC0 TEACHERS INSUR & ANNUITY 6.85 12/16/2039 0.00 5,030,000.00 880591EH1 TENN VALLEY AUTHORITY 5.25 09/15/2039 0.00 1,000,000.00 880591EH1 TENN VALLEY AUTHORITY 5.25 09/15/2039 0.00 1,500,000.00 88166HAD9 TEVA PHARMA FIN IV LLC 2.25 03/18/2020 0.00 495,000.00 882722KF7 TEXAS ST 5.517 04/01/2039 514,000.00 514,000.00 88576XAA4 HENDR 2010-1A A 5.56 07/15/2059 ABS 3,000,000.00 1,506,386.30 887315BN8 HISTORIC TW INC 6.625 05/15/2029 0.00 7,800,000.00 887315BN8 HISTORIC TW INC 6.625 05/15/2029 0.00 3,100,000.00 887317AE5 TIME WARNER INC 6.2 03/15/2040 0.00 1,400,000.00 88732JAU2 TIME WARNER CABLE INC 6.75 06/15/2039 0.00 1,330,000.00 88732JAU2 TIME WARNER CABLE INC 6.75 06/15/2039 0.00 1,670,000.00 889175BE4 TOLEDO EDISON COMPANY 7.25 05/01/2020 0.00 136,397.72

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 889175BE4 TOLEDO EDISON COMPANY 7.25 05/01/2020 0.00 71,092.14 889175BE4 TOLEDO EDISON COMPANY 7.25 05/01/2020 0.00 189,986.98 889175BE4 TOLEDO EDISON COMPANY 7.25 05/01/2020 0.00 140,425.16 891490AT1 TOSCO CORP 8.125 02/15/2030 0.00 10,000,000.00 89233P4S2 TOYOTA MOTOR CREDIT CORP 4.25 01/11/2021 0.00 6,065,000.00 89236WAD0 TAOT 2015-A A4 1.52 06/15/2020 ABS 9,330,000.00 9,330,000.00 89352HAB5 TRANS-CANADA PIPELINES 5.85 03/15/2036 0.00 750,000.00 89352HAB5 TRANS-CANADA PIPELINES 5.85 03/15/2036 0.00 325,000.00 89566EAG3 TRISTATE GEN&TRANS ASSN 3.7 11/01/2024 0.00 2,500,000.00 89655VAA0 TRL 2003-1A A 5.64 10/12/2026 ABS 2,000,000.00 571,602.44 89655XAA6 TRL 2006-1A A1 5.9 05/14/2036 ABS 5,750,000.00 2,793,308.08 90131HBF1 21ST CENTURY FOX AMERICA 6.2 12/15/2034 0.00 1,150,000.00 90131HBF1 21ST CENTURY FOX AMERICA 6.2 12/15/2034 0.00 2,100,000.00 90131HBL8 21ST CENTURY FOX AMERICA 6.65 11/15/2037 0.00 1,000,000.00 90131HBQ7 21ST CENTURY FOX AMERICA 6.15 02/15/2041 0.00 1,250,000.00 90131HBQ7 21ST CENTURY FOX AMERICA 6.15 02/15/2041 0.00 500,000.00 902494AF0 TYSON FOODS INC 7 05/01/2018 0.00 4,750,000.00 902494AF0 TYSON FOODS INC 7 05/01/2018 0.00 5,250,000.00 90261XEM0 UBS AG STAMFORD CT 5.875 12/20/2017 0.00 2,000,000.00 90261XEM0 UBS AG STAMFORD CT 5.875 12/20/2017 0.00 5,000,000.00 90261XEM0 UBS AG STAMFORD CT 5.875 12/20/2017 0.00 5,000,000.00 90261XGD8 UBS AG STAMFORD CT 4.875 08/04/2020 0.00 685,000.00 90261XGD8 UBS AG STAMFORD CT 4.875 08/04/2020 0.00 2,735,000.00 90349DAD4 UBSBB 2012-C3 A4 3.091 08/10/2049 CMBS 2,500,000.00 2,500,000.00 904764AM9 UNILEVER CAPITAL CORP 4.25 02/10/2021 0.00 1,345,000.00 904764AM9 UNILEVER CAPITAL CORP 4.25 02/10/2021 0.00 3,460,000.00 904764AT4 UNILEVER CAPITAL CORP 1.375 07/28/2021 0.00 1,235,000.00 907818CU0 UNION PACIFIC CORP 6.25 05/01/2034 0.00 1,000,000.00 907818DG0 UNION PACIFIC CORP 4 02/01/2021 0.00 1,210,000.00 907818DK1 UNION PACIFIC CORP 4.163 07/15/2022 0.00 616,000.00 90783VAA3 UNP RR CO 2005 PASS TRST 5.082 01/02/2029 3,619,000.00 1,933,136.78 91159HHL7 US BANCORP 2.35 01/29/2021 0.00 5,000,000.00 91159HHN3 US BANCORP 2.375 07/22/2026 0.00 10,000,000.00 912810QT8 US TREASURY N/B 3.125 11/15/2041 0.00 450,000.00 912810QT8 US TREASURY N/B 3.125 11/15/2041 0.00 6,700,000.00 912810RB6 US TREASURY N/B 2.875 05/15/2043 0.00 10,000,000.00 912810RB6 US TREASURY N/B 2.875 05/15/2043 0.00 2,000,000.00 912810RT7 US TREASURY N/B 2.25 08/15/2046 0.00 2,800,000.00 912810RT7 US TREASURY N/B 2.25 08/15/2046 0.00 18,000,000.00 912810RT7 US TREASURY N/B 2.25 08/15/2046 0.00 6,000,000.00 912828JR2 US TREASURY N/B 3.75 11/15/2018 0.00 3,000,000.00 912828MP2 US TREASURY N/B 3.625 02/15/2020 0.00 3,000,000.00 912828ND8 US TREASURY N/B 3.5 05/15/2020 0.00 2,000,000.00

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 912828ND8 US TREASURY N/B 3.5 05/15/2020 0.00 2,000,000.00 912828ND8 US TREASURY N/B 3.5 05/15/2020 0.00 3,000,000.00 912828NT3 US TREASURY N/B 2.625 08/15/2020 0.00 4,000,000.00 912828RC6 US TREASURY N/B 2.125 08/15/2021 0.00 21,000,000.00 912828S84 US TREASURY FRN FLT 07/31/2018 0.00 350,000.00 912828S84 US TREASURY FRN FLT 07/31/2018 0.00 650,000.00 912828S84 US TREASURY FRN FLT 07/31/2018 0.00 1,000,000.00 912828T59 US TREASURY N/B 1 10/15/2019 0.00 8,275,000.00 912828T67 US TREASURY N/B 1.25 10/31/2021 0.00 450,000.00 912828T67 US TREASURY N/B 1.25 10/31/2021 0.00 9,550,000.00 912828U73 US TREASURY N/B 1.375 12/15/2019 0.00 3,500,000.00 912828WL0 US TREASURY N/B 1.5 05/31/2019 0.00 15,000,000.00 912828XH8 US TREASURY N/B 1.625 06/30/2020 0.00 17,000,000.00 913017BS7 UNITED TECHNOLOGIES CORP 5.7 04/15/2040 0.00 3,150,000.00 91324PAR3 UNITEDHEALTH GROUP INC 5.8 03/15/2036 0.00 525,000.00 913366DF4 UNIV OF CALIFORNIA CA RGTS M 6.583 05/15/2049 475,000.00 475,000.00 913366DF4 UNIV OF CALIFORNIA CA RGTS M 6.583 05/15/2049 333,000.00 333,000.00 91412F7Y7 UNIV OF CALIFORNIA CA REVENUES 5.77 05/15/2043 1,332,000.00 1,332,000.00 91913YAB6 VALERO ENERGY CORP 8.75 06/15/2030 0.00 2,000,000.00 91913YAL4 VALERO ENERGY CORP 6.625 06/15/2037 0.00 1,000,000.00 92343VAF1 VERIZON COMMUNICATIONS 6.25 04/01/2037 0.00 450,000.00 92343VAU8 VERIZON COMMUNICATIONS 7.35 04/01/2039 0.00 750,000.00 92343VBJ2 VERIZON COMMUNICATIONS 2.45 11/01/2022 0.00 880,000.00 92344GAM8 VERIZON COMMUNICATIONS 7.75 12/01/2030 0.00 1,000,000.00 92553PAD4 VIACOM INC 5.625 09/15/2019 0.00 3,000,000.00 927804FB5 VIRGINIA ELEC & POWER CO 6 05/15/2037 0.00 2,400,000.00 92826CAD4 VISA INC 3.15 12/14/2025 0.00 2,405,000.00 92857TAH0 VODAFONE GROUP PLC 7.875 02/15/2030 0.00 5,000,000.00 92890KAZ8 WFRBS 2014-C22 A4 3.488 09/15/2057 CMBS 6,670,000.00 6,670,000.00 92890PAF1 WFRBS 2013-C14 ASB 2.977 06/15/2046 CMBS 11,070,000.00 11,070,000.00 92939HAX3 WFRBS 2014-C23 A4 3.65 10/15/2057 CMBS 10,000,000.00 10,000,000.00 92979FAD2 WBCMT 2007-C34 A3 5.678 05/15/2046 CMBS 3,000,000.00 436,662.63 929903AM4 WACHOVIA CORP 5.5 08/01/2035 0.00 1,000,000.00 929903AM4 WACHOVIA CORP 5.5 08/01/2035 0.00 2,000,000.00 931142BF9 WAL-MART STORES INC 7.55 02/15/2030 0.00 3,000,000.00 931142CB7 WAL-MART STORES INC 5.25 09/01/2035 0.00 6,000,000.00 931142CK7 WAL-MART STORES INC 6.5 08/15/2037 0.00 585,000.00 931142CS0 WAL-MART STORES INC 5.625 04/01/2040 0.00 4,000,000.00 931427AC2 WALGREENS BOOTS ALLIANCE 4.8 11/18/2044 0.00 36,000.00 931427AC2 WALGREENS BOOTS ALLIANCE 4.8 11/18/2044 0.00 61,000.00 931427AC2 WALGREENS BOOTS ALLIANCE 4.8 11/18/2044 0.00 30,000.00 931427AC2 WALGREENS BOOTS ALLIANCE 4.8 11/18/2044 0.00 30,000.00 931427AC2 WALGREENS BOOTS ALLIANCE 4.8 11/18/2044 0.00 70,000.00

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 931427AC2 WALGREENS BOOTS ALLIANCE 4.8 11/18/2044 0.00 30,000.00 931427AC2 WALGREENS BOOTS ALLIANCE 4.8 11/18/2044 0.00 30,000.00 94106LAS8 WASTE MANAGEMENT INC 6.1 03/15/2018 0.00 1,000,000.00 94106LAS8 WASTE MANAGEMENT INC 6.1 03/15/2018 0.00 8,000,000.00 94973VAH0 ANTHEM INC 5.95 12/15/2034 0.00 3,000,000.00 949746NX5 WELLS FARGO & COMPANY 5.625 12/11/2017 0.00 1,635,000.00 949746RW3 WELLS FARGO & COMPANY 3 04/22/2026 0.00 4,810,000.00 94974BFR6 WELLS FARGO & COMPANY 3 01/22/2021 0.00 4,000,000.00 94974BGA2 WELLS FARGO & COMPANY 3.3 09/09/2024 0.00 3,000,000.00 94974BGL8 WELLS FARGO & COMPANY 4.3 07/22/2027 0.00 785,000.00 94974BGP9 WELLS FARGO & COMPANY 3.55 09/29/2025 0.00 1,500,000.00 94974BGP9 WELLS FARGO & COMPANY 3.55 09/29/2025 0.00 7,500,000.00 94974BGQ7 WELLS FARGO & COMPANY 4.9 11/17/2045 0.00 175,000.00 94974BGT1 WELLS FARGO & COMPANY 4.4 06/14/2046 0.00 4,000,000.00 949797AA2 WFMBS 2007-15 A1 6 11/25/2037 WHOLE LOAN 10,125,000.00 1,112,153.82 94980VAG3 WELLS FARGO BANK NA 5.95 08/26/2036 0.00 3,940,000.00 94980VAG3 WELLS FARGO BANK NA 5.95 08/26/2036 0.00 1,310,000.00 94989CAY7 WFCM 2015-C26 ASB 2.991 02/15/2048 CMBS 6,000,000.00 6,000,000.00 94989DAV1 WFCM 2015-C27 A4 3.19 02/15/2048 CMBS 2,780,000.00 2,780,000.00 94989EAD9 WFCM 2015-LC20 A4 2.925 04/15/2050 CMBS 10,000,000.00 10,000,000.00 94989EAE7 WFCM 2015-LC20 A5 3.184 04/15/2050 CMBS 500,000.00 500,000.00 94989JAY2 WFCM 2015-C28 A3 3.29 05/15/2048 CMBS 7,500,000.00 7,500,000.00 94989YAY9 WFCM 2016-C32 A3 3.294 01/15/2059 CMBS 6,250,000.00 6,250,000.00 95000CAZ6 WFCM 2016-NXS5 A4 3.37 01/15/2059 CMBS 4,500,000.00 4,500,000.00 95000DBC4 WFCM 2016-C34 A3 2.834 06/15/2049 CMBS 7,000,000.00 7,000,000.00 95000DBE0 WFCM 2016-C34 ASB 2.911 06/15/2049 CMBS 3,000,000.00 3,000,000.00 961214BK8 WESTPAC BANKING CORP 4.875 11/19/2019 0.00 4,500,000.00 961214BK8 WESTPAC BANKING CORP 4.875 11/19/2019 0.00 5,000,000.00 96221TAD9 WFRBS 2014-LC14 A4 3.766 03/15/2047 CMBS 5,000,000.00 5,000,000.00 96950FAD6 WILLIAMS PARTNERS LP 5.25 03/15/2020 0.00 500,000.00 976656CD8 WISC ELEC POWER 2.95 09/15/2021 0.00 890,000.00 976826BF3 WISCONSIN POWER & LIGHT 7.6 10/01/2038 0.00 1,155,000.00 98105EAH0 WOORI BANK 2.875 10/02/2018 0.00 3,000,000.00 984121CA9 XEROX CORPORATION 5.625 12/15/2019 0.00 690,000.00

Ceding Company Data

The actuarial report prepared by Willis Towers Watson with respect to the Reinsured Contracts as of September 30, 2016, and all attachments, addenda, supplements and modifications thereto. The Confidential Reinsurance Transaction Report, dated January 20, 2017 titled Project West provided by Willis Re Inc. on behalf of Ceding Company to Reinsurer in connection with the transactions contemplated by this Agreement. Question and Answers between the Ceding Company and the Reinsurer: Email dated March 16, 2017 from Mike Kaster of Willis Re Inc. (the broker) to Quentin Marsh and Mark Renetzky of the Reinsurer with the subject line of FW: Due Diligence questions - so far and the attachment named RGA_0309questions.docx. Email dated March 16, 2017 from Lisa Marquardt of the Ceding Company to Flo Shi of the Reinsurer with the subject line of RE: Project West - 0316 Questions from RGA. Email dated March 20, 2017 from Lisa Marquardt of the Ceding Company to Flo Shi of the Reinsurer with the subject line of RE: Project West - 0316 Questions from RGA and the attachment named RGA_0320questions.docx. Two emails dated March 27, 2017 from Lisa Marquardt of the Ceding Company to Flo Shi of the Reinsurer with the subject line of RE: Project West0327 Questions from RGA. Email dated March 28, 2017 from Lisa Marquardt of the Ceding Company to Flo Shi of the Reinsurer with the subject line of RE: Project West - 0324 Questions from RGA. Three emails dated March 30, 2017 from Lisa Marquardt of the Ceding Company to Flo Shi of the Reinsurer with the subject line of RE: Project West0327 Questions from RGA. Email dated May 16, 2017 from Lisa Marquardt of the Ceding Company to Quentin Marsh, Joseph Zieroff and Mark Renetzky of the Reinsurer with the subject line of New Data for Project West Scope. Email dated May 17, 2017 from Michael Rohwetter on behalf of the Ceding Company to John Rhinehart of the Ceding Company, Quentin Marsh of the Reinsurer, Jens Reuter of the Ceding Company and James Hedreen of the Ceding Company with the subject line of RE: Closing statement update, containing the Closing Statement in the Excel file 2017-05-17 Closing Statement RGA FNWL Final.xlsx included in Schedule I.

Data Kind Title Category Room # Adobe Acrobat Project West - Actuarial Appraisal Report + Actuarial Appraisal/Process 4.2 Projections FINAL 01 19 2017 Letter Adobe Acrobat Project West - Confidential Reinsurance Transaction Appraisal/Process 3.1 Report - FNW - January 20 - Final Letter Adobe Acrobat WEST Process Letter Round 2 FINAL Appraisal/Process 3.2 Letter Microsoft Word Document CoE 2016 OTTI process(Asset Impairment Policy) Assets 5.1 Microsoft Excel Spreadsheet ProjectWestProposedAssets DataRoom Assets 5.2 Adobe Acrobat Investment Accounting Valuation Policy V1_3 Assets 5.3 Microsoft Excel Spreadsheet ProjectWestProposedAssets_MoreData Assets 5.4 Microsoft Excel Spreadsheet Watchlist as of 2016-12-31 ProjectWestProposedAssets Assets 5.5 DataRoom Microsoft Excel Spreadsheet DA and VA Lapse Experience Studies Results Exp Studies 9.1 Microsoft Excel Spreadsheet DA Premium Study Exp Studies 9.2 Adobe Acrobat DA, VA, SS Actual Annuitizations YTD as of 9.30.2016 Exp Studies 9.3 Microsoft Excel Spreadsheet DA, VA, SS Mortality Experience Studies Results Exp Studies 9.4 Microsoft Word Document Dynamic Lapse Study Exp Studies 9.5 Microsoft Word Document DA Dynamic Policyholder Lapse Adjustment Exp Studies 9.6 Microsoft Excel Spreadsheet GRIB Rider - Historical Utilization Exp Studies 9.7 Microsoft Word Document DA Surrender Charge Analysis 201612 Exp Studies 9.9 Microsoft Excel Spreadsheet Partial Withdrawal Study 2015 - Combine Fund Exp Studies 9.10 Microsoft Excel Spreadsheet DA_Persistency_Experience_2012_2015 Exp Studies 9.11 Microsoft Excel Spreadsheet SS Mort_Study 2016 - 1996 Population Table Exp Studies 9.12 Microsoft Excel Spreadsheet FPA_Premium_Study_byage_20151231 Exp Studies 9.13 Microsoft Excel Spreadsheet VA_Persistency_Experience_2012_2015 Exp Studies 9.14 Microsoft Excel Spreadsheet VA_Mortality_Experience_2012_2015 Exp Studies 9.15 Microsoft Excel Spreadsheet DA_Mortality_Experience_2012_2015 Exp Studies 9.16 Microsoft Excel Spreadsheet DA 2016 Terminations Exp Studies 9.17 Microsoft Excel Spreadsheet DA_New_Money_Portfolio Exp Studies 9.19 Microsoft Excel Spreadsheet DA_Distributions_By_Type_2014-2016 Exp Studies 9.22 Microsoft Excel Spreadsheet VA_Distributions_By_Type_2013-2016 Exp Studies 9.23 Microsoft Word Document VA GRIB & GMDB Description Exp Studies 9.24 Microsoft Excel Spreadsheet StatIncStmtBalanceSheet_2012to2016 Financials 12.1 Microsoft Excel Spreadsheet Stat_Income_by_LOB_2013-2016 Financials 12.2 Microsoft Excel Spreadsheet Va_Stochastic_Results Financials 12.6 Microsoft Word Document DA & VA Crediting Methodology Product Information 8.1 Microsoft Excel Spreadsheet VA and DA Commissions Product Information 8.4 Microsoft Excel Spreadsheet Plan Code Mapping Product Information 8.5 Microsoft Word Document Administration Info for All products Product Information 8.6 Adobe Acrobat Mktg_AgentGuide Product Information 8.7 Adobe Acrobat Mktg_AgentGuideOlder Product Information 8.8 Adobe Acrobat Mktg_TheAnnuityAdvantage_final.1.5.15 Product Information 8.9 Adobe Acrobat DA & VA Target Spreads Product Information 8.13 Microsoft Word Document Annuity Start Date - Max age documentation Product Information 8.14 Microsoft Word Document What Crediting Rates Would Have Been without Min Product Information 8.15 Guarantees. Adobe Acrobat Structured Settlement Assumed Reinsurance Product Information 8.16 Microsoft Excel Spreadsheet All Variations of Contracts Policy Forms 1.1 Adobe Acrobat EIA Contract Policy Forms 1.2 Adobe Acrobat SS Contract Policy Forms 1.3 Adobe Acrobat Terminal Illness Contract Policy Forms 1.4 Adobe Acrobat Nursing Care Contract Policy Forms 1.5 Adobe Acrobat GRIB Contract Policy Forms 1.6 Adobe Acrobat GMDB Contract Policy Forms 1.7 Adobe Acrobat VA Contract 2000 Policy Forms 1.8

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Microsoft Excel Spreadsheet SS Seriatim Other Info_20160930 Seriatim Liabs 6.11 Microsoft Excel Spreadsheet SS Seriatim Benefit Info_20160930 Seriatim Liabs 6.12 Microsoft Excel Spreadsheet SS Seriatim Benefit Info_20141231 Seriatim Liabs 6.11 Microsoft Excel Spreadsheet SS Seriatim Benefit Info_20151231 Seriatim Liabs 6.12 Microsoft Excel Spreadsheet SS Seriatim Other Info_20141231 Seriatim Liabs 6.15 Microsoft Excel Spreadsheet SS Seriatim Other Info_20151231 Seriatim Liabs 6.16 Microsoft Excel Spreadsheet SS Seriatim Reserves_20141231 Seriatim Liabs 6.19 Microsoft Excel Spreadsheet SS Seriatim Reserves_20151231 Seriatim Liabs 6.20 Unknown DA Seriatim Data as of 09302016 Seriatim Liabs 6.1 Unknown DA Seriatim Data as of 12312014 Seriatim Liabs 6.24 Unknown DA Seriatim Data as of 12312015 Seriatim Liabs 6.25

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Data Kind Title Category Room # Unknown DA Seriatim Data as of 12312016 Seriatim Liabs 6.2 Unknown VA Seriatim Data as of 09302016 Seriatim Liabs 6.3 Microsoft Excel Spreadsheet VA Seriatim Data as of 12312014 Seriatim Liabs 6.30 Unknown VA Seriatim Data as of 12312015 Seriatim Liabs 6.31 Unknown VA Seriatim Data as of 12312016 Seriatim Liabs 6.4 Microsoft Excel Spreadsheet IMR Amortization - Project West Seriatim Liabs 6.33 Adobe Acrobat FNWL Annuity Liability Duration 16Q4 Seriatim Liabs 6.35 Adobe Acrobat 1981 Contract 491 492 496.pdf Policy Forms NA

Closing Statement

Email dated May 17, 2017 from Michael Rohwetter on behalf of the Ceding Company to John Rhinehart of the Ceding Company, Quentin Marsh of the Reinsurer, Jens Reuter of the Ceding Company and James Hedreen of the Ceding Company with the subject line of RE: Closing statement update, containing the Closing Statement in the Excel file 2017-05-17 Closing Statement RGA FNWL Final.xlsx incorporated herein by reference and included in an attached CD-ROM.

An excerpt from the Closing Statement is attached below for reference.

Closing Statement General Account General Account Liabilities as of the Effective Date 1 $ 2,107,981,018 Ratio of Market to Book Value of Transferred Asset Portfolio as of Effective Date 2 108.203 % Market Value of Transferred Assets as of Effective Date 1*2=3 $ 2,280,900,875 Closing Date IMR 4 $ 8,094,686 General Account Initial Consideration 4+3=5 $ 2,288,995,561 Initial Consideration Settlement Settled in Market Value of Transferred Assets on Close Date 6 $ 2,263,430,824 Settled in Cash 7 $ 8,094,686 Ceding Commission Ceding Commission Net of Adjustments ($23,446,192 ) Ceding Commission (cash settled) 8 $ (23,446,192 ) Accrued Income Adjustment Accrued Investment Income as of Effective Date 9 $ (17,306,317 ) Investment Credit on Transferred Assets (All post Effective Date cash flows) 10 $ 29,251,595 3/31 Transferred Port BV shortfall 11 $ 8,005,642 Accrued Income Adjustment (cash settled) 9+10+11 = 12 $ 19,950,920 Total Net Cash Settlement to/(from) RGA 7+8+12=13 $ 4,599,414 Total Transferred Assets settlend to RGA in Trust =6 $ 2,263,430,824 Required Amount as of the Closing Date General Account Liabilities as of the Effective Date 14 $ 2,107,981,018 Collateralized IMR 15 120,143,138 Total Required Amount at Closing Date 14+15=16 $ 2,228,124,156

RBC Certification Requirements

A. The Reinsurer shall provide to the Ceding Company by the relevant RBC Reporting Deadline set forth below, a certification of the Company Action Level RBC Ratio of the Reinsurer as of the last day of each calendar quarter during the term of this Agreement as follows: (i) for each of the first three calendar quarters of a calendar year, based on the Reinsurers good faith estimate as of the last day of such calendar quarter, using, to the extent any factors are not reasonably available, amounts based on reasonable estimation and annualization, and (ii) for the fourth calendar quarter of a calendar year, calculated by the Reinsurer as of the last day of such calendar year. B. The Reinsurer shall certify its Company Action Level RBC Ratio to the Ceding Company each period (collectively RBC Reporting Deadline) as follows: (i) Quarter End For each of the first three calendar quarters of a calendar year, an officer of the Reinsurer shall certify to the Ceding Company that its internally estimated Company Action Level RBC Ratio is at or above 275% and has not decreased by 50 or more points since the end of the immediately preceding calendar quarter, no later than day 46 following the calendar quarter end or the next Business Day should such date fall on a non-Business Day. (ii) Year End For the last calendar quarter of a calendar year, an officer of the Reinsurer shall certify to the Ceding Company (x) its Company Action Level RBC Ratio (calculated as described above in A(ii)), and (y) that its Company Action Level RBC Ratio is at or above 275% and has not decreased by 50 or more points since the end of the immediately preceding calendar quarter, no later than March 1 or the next Business Day should such date fall on a non-Business Day. (iii) The certifications set forth in this Subsection B shall be sent to the Ceding Companys Chief Financial Officer. C. The Reinsurer shall provide to the Ceding Company, along with the Reinsurers Company Action Level RBC Ratio certification, a written explanation for any change in Reinsurers Company Action Level RBC Ratio according to the following table:

Decrease from Previously Reported Reported Company Action Quarterly/Annual Company Action Level RBC Ratio Level RBC Ratio Greater than 750% 100 points or more 750% to greater than 275% 50 points or more 275% or less See next section

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document The Reinsurer shall respond to any question(s) from the Ceding Company with respect to the Reinsurers Company Action Level RBC Ratio within five (5) Business Days of receipt of such question(s). D. RBC Ratio Certification and RBC Ratio Event: (i) In the event that an RBC Ratio Event has occurred and is continuing, the Reinsurer shall provide to the Ceding Company, along with the Reinsurers Company Action Level RBC Ratio certification, the following additional information: 1. An explanation of the reason for the drop to 275% or below; 2. A plan on how the Reinsurer shall restore their Company Action Level RBC Ratio to a level above 275% within the next calendar quarter; and 3. If the Reinsurer Company Action Level RBC Ratio does not recover to 276% or greater by the subsequent calendar quarter, the Reinsurer shall begin holding monthly status meetings with the appropriate Ceding Company employee(s) until such time as the Reinsurers Company Action Level RBC Ratio rises to 276% or greater for two (2) consecutive calendar quarters. (ii) In the event that an RBC Ratio Event has occurred and is continuing for two (2) consecutive calendar quarters: 1. If requested, the Reinsurer shall begin holding weekly status meetings with the appropriate Ceding Company employee(s) until such time as the Company Action Level RBC Ratio rises to 276% or greater; 2. If the Reinsurer and the Ceding Company agree in writing that actions taken by the Reinsurer are sufficient to resolve the issue, then those actions must be acceptable to the Reinsurers regulator; 3. The definition of the Required Amount shall be adjusted pursuant to the terms thereof; 4. The terms of Article IV that are triggered upon an RBC Ratio Event shall apply; and 5. The Reinsurer shall provide information to the Ceding Company about the Reinsurers asset liability management plans related to the Reinsured Contracts. E. Notwithstanding the preceding, the Company Action Level RBC Ratio certification requirement described above shall cease immediately after the calendar quarter in which the sum of (a) plus (b) falls below $100 million, where: (a) equals the General Account Liabilities; and (b) equals the Separate Account Liabilities. F. Any information provided by the Reinsurer to the Ceding pursuant to this Schedule J shall be subject to Section 11.12 of this Agreement.

Ceding Companys Disclosure Schedule

None

Reinsurers Disclosure Schedule

None

Crediting Rates

1. General. The Ceding Company and the Reinsurer understand and agree that the procedure for establishing Crediting Rates will vary depending on the applicable surrender charge period status. 2. In Surrender Charge Period. For Reinsured Contracts within the surrender charge period, as defined in such Reinsured Contract, Crediting Rates shall be determined each calendar quarter using the New Money Rate methodology as follows: For each calendar quarter, the New Money Rate (the NMR) shall be equal to the net of (i) minus (ii) minus (iii) where: (i) equals the average of the yield-to-worst value of the Barclays US Intermediate Credit A or better index, at the end of the last Business Day of the first two (2) calendar months of the prior calendar quarter; and (ii) equals the average of thirty three percent (33%) of the Option Adjusted Spread (OAS) of the Barclays US Intermediate Credit A or better index as of the end of the last Business Day of the first two (2) calendar months of the prior calendar quarter; and (iii) equals one hundred fifty (150) basis points. A. Current Crediting Rate: For Reinsured Contracts reaching their anniversary in the current calendar quarter, where surrender charges still apply in the next Annuity Year, (X) the Current Crediting Rate (CCR) is defined as the Crediting Rate applicable for the Reinsured Contract in the Annuity Year leading up to the current anniversary, and (Y) the Target Crediting Rate for the next Annuity Year will be determined as follows: (a) If the NMR is less than the CCR, then the Target Crediting Rate shall be the result of (i) plus {2/3 times the net of [(ii) minus (iii)]}, where: (i) equals the CCR; (ii) equals the NMR; and (iii) equals the CCR; and (b) If the NMR is equal to or greater than the CCR, then the Target Crediting Rate shall be the result of (i) plus {1/3 times the net of [(ii) minus (iii)]}, where: (i) equals the CCR; (ii) equals the NMR; and (iii) equals the CCR. The Crediting Rate shall be greater of (i) and (ii); where:

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document (i) equals the Target Crediting Rate; and (ii) equals the guaranteed minimum interest rate as defined in the applicable Reinsured Contract (the GMIR). The term Annuity Year shall mean each twelve (12) calendar month period beginning on the anniversary date of issue of a Reinsured Contract. B. Target Crediting Rate: For Annuities reaching their anniversary in the current calendar quarter where surrender charges no longer apply in the next Annuity Year, the Target Crediting Rate will be set consistent with the Target Crediting Rate determined under Paragraph 3.E below. 3. Out of Surrender Charge Period. With respect to any Reinsured Contract that is outside of the surrender charge period as defined in such Reinsured Contract, the Crediting Rates shall be determined each calendar quarter, as set forth in this Paragraph 3. The Crediting Rate shall be equal to the greater of the GMIR and the Target Crediting Rate. To allow adequate time to determine Crediting Rates, the Target Crediting Rate for a calendar quarter will apply with respect to Crediting Rates in the second calendar quarter following the end of the reported calendar quarter (i.e., with respect to Crediting Rates determined for the third calendar quarter, the Target Crediting Rate is set using values from the first calendar quarter of the year). A. Cumulative Spread Bucket Balance. As used herein, Cumulative Spread Bucket Balance shall be equal to the sum of (i) plus (ii) plus (iii) plus (iv), where: (i) for the calendar quarter ending on the Effective Date equals zero and, for each calendar quarter thereafter, equals the Cumulative Spread Bucket Balance as of the end of the preceding calendar quarter; (ii) for the calendar quarter ending on the Effective Date equals zero and, for each calendar quarter thereafter, equals the product of (A) times (B), where: (A) equals the Cumulative Spread Bucket Balance as of the end of the preceding calendar quarter, and (B) equals the ((1 plus Asset Portfolio Yield for the current calendar quarter)1/4-1) ; (iii) equals the product of ((1 plus (A))1/4 -1) times (B), where: (A) equals the Asset Portfolio Yield for the current calendar quarter minus the Average Credited Rate for the current calendar quarter, minus one hundred seventy five (175) basis points; and (B) equals the Fixed Account Value as of the end of the prior calendar quarter; and

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document (iv) equals the amortization of (a) the Closing Date IMR Amount and (b) the Interest Maintenance Reserve created on the Effective Date attributable to the Fixed Account Value in the current calendar quarter. B. Asset Portfolio Yield. The Asset Portfolio Yield will be determined each quarter based upon the investment income generated by Authorized Investments in the Trust Account. The Asset Portfolio Yield will be determined on a statutory basis in accordance with current NAIC accounting guidelines and will include all investment income, realized capital gains or losses and any changes to pre-tax IMR Amount related to such Authorized Investments in the Trust Account. The Asset Portfolio Yield will be defined as (1 plus the Quarterly Asset Portfolio Yield)4 - 1. The Quarterly Asset Portfolio Yield will be defined as (i) multiplied by two (2) divided by [(ii) plus (iii) minus (i)], where: (i) equals the result of [(a) minus (b)], where: (a) equals all U.S. statutory investment income, realized capital gains and losses and any changes to pre-tax IMR Amount related to Authorized Investments in the Trust Account; and (b) equals four (4) basis points multiplied by Statutory Book Value of the Authorized Investments in the Trust Account as of the beginning of the current calendar quarter; (ii) equals the Statutory Book Value of the Authorized Investments in the Trust Account as of the end of the current calendar quarter; and (iii) equals the Statutory Book Value of the Authorized Investments in the Trust Account as of the end of the preceding calendar quarter. C. Average Crediting Rate. As used herein, Average Crediting Rate will be determined for each calendar quarter as the weighted average crediting rate for those Reinsured Contracts that are reaching their anniversary in the current calendar quarter using weights from (i) and (ii), where: (i) equals the Fixed Account Value at the end of the preceding calendar quarter for such Reinsured Contracts that are reaching their anniversary in the current calendar quarter; and (ii) equals the sum of all premiums and other deposits with respect to such Reinsured Contracts received during the current calendar quarter. D. Fixed Account Value. As used herein, the Fixed Account Value means the account value of the fixed deferred annuities and the fixed account value of the variable annuities, each in respect of the Reinsured Contracts. E. Target Crediting Rate. As used in this Paragraph 3, the Target Crediting Rate will be determined each calendar quarter as the lesser of (i) and (ii), where:

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document (i) equals the result of (A) minus (B), where: (A) equals the Asset Portfolio Yield determined in accordance with Paragraph 3.B above; and (B) equals one hundred seventy five (175) basis points; and (ii) equals the sum of (A) plus (B), where: (A) equals the GMIR; and (B) equals the quotient of the Cumulative Spread Bucket Balance divided by the Fixed Account Value as of the end of the current calendar quarter.

ATTACHED TO AND MADE A PART OF THE

REINSURANCE AGREEMENT EFFECTIVE APRIL 1,

2017 BETWEEN

FARMERS NEW WORLD LIFE INSURANCE COMPANY

Ceding

Company AND

RGA REINSURANCE COMPANY

Reinsurer

Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document The Ceding Company and the Reinsurer agree to amend this Reinsurance Agreement as follows: I. ARTICLE I, DEFINITIONS, the Premiums definition is replaced in its entirety by the following: Premiums means premiums, considerations, deposits, policy fees and other similar receipts received by or on behalf of the Ceding Company in respect of the Reinsured Contracts. All Premiums for individual fixed defe1Ted annuities that are qualified, as defined by the IRS, with three percent (3%) or four percent (4%) guarantees shall be limited to the greater of (i) $6,000 or (ii) the current IRS maximum IRA contribution per Reinsured Contract per tax year. All Premiums for individual fixed deferred annuities that are non-qualified, as defined by the IRS, with three percent (3%) or four percent (4%) guarantees shall be limited to $6,000 per Reinsured Contract per calendar year.

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Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document In witness of the above, this Amendment One is executed in duplicate on the dates indicated below, with an Effective Date of April 1, 2017.

FARMERS NEW WORLD LIFE INSURANCE COMPANY

By: /s/ James Davenport Name: James Davenport Title: CFO

By: /s/ Garrett Paddor Name: Garrett Paddor Title: Secretary & General Counsel

RGA REINSURANCE COMPANY

By: /s/ John P. Laughlin Name: John P. Laughlin Title: EVP

By: /s/ Gary Seifert Name: Gary Seifert Title: SVP

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