QUARTERLY STATEMENT OF THE Life Insurance Company of the Southwest Of Addison in the state of TX to the Insurance Department of the State of For the Period Ended September 30, 2016 2016 Statement as of September 30, 2016 of the Life Insurance Company of the Southwest ASSETS Current Statement Date 4 1 2 3 Net Admitted December 31 Nonadmitted Assets Prior Year Net Assets Assets (Cols. 1 - 2) Admitted Assets 1. Bonds............................................................................................................................................ .........12,004,642,350 .................................0 .........12,004,642,350 .........11,280,520,418 2. Stocks: 2.1 Preferred stocks................................................................................................................. ................11,700,000 .................................0 ................11,700,000 ................10,000,000 2.2 Common stocks.................................................................................................................. ................80,809,600 .................................0 ................80,809,600 ................56,933,129 3. Mortgage loans on real estate: 3.1 First liens............................................................................................................................ ...........2,429,200,563 .................................0 ...........2,429,200,563 ...........2,135,942,647 3.2 Other than first liens........................................................................................................... .................................0 .................................0 .................................0 .................................0 4. Real estate: 4.1 Properties occupied by the company (less $............0 encumbrances)................................................................................................................... .................................0 .................................0 .................................0 .................................0 4.2 Properties held for the production of income (less $............0 encumbrances)................................................................................................................... ..................6,065,658 .................................0 ..................6,065,658 ..................2,939,652 4.3 Properties held for sale (less $..........0 encumbrances).................................................... .................................0 .................................0 .................................0 .................................0 5. Cash ($.....15,886,175), cash equivalents ($.....5,999,882) and short-term investments ($.....132,500,000)........................................................................... ..............154,386,057 .................................0 ..............154,386,057 ................76,347,536 6. Contract loans (including $..........0 premium notes).................................................................... ..............303,108,981 .................................0 ..............303,108,981 ..............286,316,160 7. Derivatives.................................................................................................................................... ..............674,693,937 .................................0 ..............674,693,937 ..............283,103,402 8. Other invested assets................................................................................................................... ..............443,358,370 .................................0 ..............443,358,370 ..............295,904,084 9. Receivables for securities............................................................................................................. .................................0 .................................0 .................................0 .....................261,674 10. Securities lending reinvested collateral assets............................................................................ .................................0 .................................0 .................................0 .................................0 11. Aggregate write-ins for invested assets....................................................................................... .....................522,950 .................................0 .....................522,950 .....................453,175 12. Subtotals, cash and invested assets (Lines 1 to 11)................................................................... .........16,108,488,466 .................................0 .........16,108,488,466 .........14,428,721,876 13. Title plants less $..........0 charged off (for Title insurers only)..................................................... .................................0 .................................0 .................................0 .................................0 14. Investment income due and accrued........................................................................................... ..............133,469,424 .................................0 ..............133,469,424 ..............124,174,603 15. Premiums and considerations: 15.1 Uncollected premiums and agents' balances in the course of collection.......................... .....................673,727 .................................0 .....................673,727 .....................863,494 15.2 Deferred premiums, agents' balances and installments booked but deferred and not yet due (including $..........0 earned but unbilled premiums)................................ ................13,913,716 .................................0 ................13,913,716 ................12,510,453 15.3 Accrued retrospective premiums ($..........0) and contracts subject to redetermination ($..........0)................................................................................................. .................................0 .................................0 .................................0 .................................0 16. Reinsurance: 16.1 Amounts recoverable from reinsurers................................................................................ .....................257,564 .................................0 .....................257,564 .....................444,328 16.2 Funds held by or deposited with reinsured companies..................................................... ............................473 .................................0 ............................473 .........................1,272 16.3 Other amounts receivable under reinsurance contracts................................................... .................................0 .................................0 .................................0 .................................0 17. Amounts receivable relating to uninsured plans.......................................................................... .................................0 .................................0 .................................0 .................................0 18.1 Current federal and foreign income tax recoverable and interest thereon.................................. .................................0 .................................0 .................................0 .................................0 18.2 Net deferred tax asset.................................................................................................................. ................91,661,736 ................18,248,213 ................73,413,524 ................63,516,376 19. Guaranty funds receivable or on deposit..................................................................................... ..................1,012,305 .................................0 ..................1,012,305 ..................1,012,305 20. Electronic data processing equipment and software................................................................... .....................457,059 .....................446,848 .......................10,211 .......................13,083 21. Furniture and equipment, including health care delivery assets ($..........0)................................ .....................449,307 .....................449,307 .................................0 .................................0 22. Net adjustment in assets and liabilities due to foreign exchange rates....................................... .................................0 .................................0 .................................0 .................................0 23. Receivables from parent, subsidiaries and affiliates.................................................................... .................................0 .................................0 .................................0 ................18,861,585 24. Health care ($..........0) and other amounts receivable................................................................. ................33,958,994 ................33,958,994 .................................0 .................................0 25. Aggregate write-ins for other than invested assets...................................................................... ................13,797,303 .....................917,301 ................12,880,002 ................30,872,537 26. Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 12 through 25)............................................................................................ .........16,398,140,074 ................54,020,663