SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Statutory Financial Statements and Schedules

December 31, 2024 and 2023

(With Independent Auditors’ Report Thereon)

	KPMG LLP
	Suite 1100
	One Jackson Place
	188 East Capitol Street
	Jackson, MS 39201-2127

Independent Auditors’ Report

The Board of Directors

Southern Farm Bureau Life Insurance Company:

Opinions

We have audited the statutory financial statements of Southern Farm Bureau Life Insurance Company (the Company), which comprise the statutory statements of admitted assets, liabilities and stockholders’ equity as of December 31, 2024 and 2023, and the related statutory statements of earnings, changes in stockholders’ equity, and cash flow for the years then ended, and the related notes to the statutory financial statements.

Unmodified Opinion on Statutory Basis of Accounting

In our opinion, the accompanying statutory financial statements present fairly, in all material respects, the admitted assets, liabilities and stockholders’ equity of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flow for the years then ended in accordance with accounting practices prescribed or permitted by the Mississippi Insurance Department described in Note 1.

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 section of our report, the statutory financial statements do not present fairly, in accordance with U.S. generally accepted accounting principles, the financial position of the Company as of December 31, 2024 and 2023, or the results of its operations or its cash flows for the years then ended.

Basis for Opinions

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles

As described in Note 1(c) to the statutory financial statements, the statutory financial statements are prepared by the Company using accounting practices prescribed or permitted by the Mississippi Insurance Department, which is a basis of accounting other than U.S. generally accepted accounting principles. Accordingly, the statutory financial statements are not intended to be presented in accordance with U.S. generally accepted accounting principles. The effects on the statutory financial statements of the variances between the statutory accounting practices described in Note 1(d) and U.S. generally accepted accounting principles, although not reasonably determinable, are presumed to be material and pervasive.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the statutory financial statements in accordance with accounting practices prescribed or permitted by the Mississippi Insurance Department.

KPMG LLP, a Delaware limited liability partnership and a member firm of

the KPMG global organization of independent member firms affiliated with

KPMG International Limited, a private English company limited by guarantee.

 

Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of statutory financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the statutory financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for one year after the date that the statutory financial statements are issued.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the statutory financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the statutory financial statements.

In performing an audit in accordance with GAAS, we:

● Exercise professional judgment and maintain professional skepticism throughout the audit.

● Identify and assess the risks of material misstatement of the statutory financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the statutory financial statements.

● Obtain an understanding of internal control relevant to the audit 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 Company’s internal control. Accordingly, no such opinion is expressed.

● Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the statutory financial statements.

● Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

Supplementary Information

Our audits were conducted for the purpose of forming an opinion on the statutory financial statements as a whole. The supplementary information included in Schedules 1-4 is presented for purposes of additional analysis and is not a required part of the statutory financial statements but is supplementary information required by the Mississippi Insurance Department. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the statutory financial statements. The information has been subjected to the auditing procedures applied in the

2

audits of the statutory 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 financial statements or to the statutory financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the information is fairly stated in all material respects in relation to the statutory financial statements as a whole.

/s/ KPMG LLP

Jackson, Mississippi

April 24, 2025

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SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY 

Statutory Statements of Admitted Assets,

Liabilities and Stockholders’ Equity

December 31, 2024 and 2023

Admitted Assets	2024		2023
Investments:
Bonds, generally at amortized cost (fair value of $9,664,864,397 in 2024 and $9,757,861,408 in 2023)	$	10,392,136,597		10,445,444,509
Stocks:
Preferred stocks, generally at fair value (amortized cost of $32,017,839 in 2024 and $36,327,532 in 2023)		33,648,206		35,407,975
Common stocks, at fair value (cost of $864,396,198 in 2024 and $676,137,776 in 2023)		1,068,607,053		832,445,266
Total stocks		1,102,255,259		867,853,241
Mortgage loans		2,123,727,368		2,072,686,676
Real estate:
Home office property, at cost, less accumulated depreciation of $37,470,166 in 2024 and $36,200,785 in 2023		18,412,332		17,747,046
Real estate held for investment, at cost		1,088,764		1,088,764
Total real estate		19,501,096		18,835,810
Other invested assets		1,323,595,778		1,273,785,372
Cash, cash equivalents and short-term investments, at cost, which approximates fair value		205,359,512		166,610,145
Policy loans		638,347,049		609,441,017
Receivable for securities/other		5,780,534		2,899,910
Total investments		15,810,703,193		15,457,556,680
Other assets:
Deferred income taxes		59,088,233		56,521,579
Premiums deferred and uncollected		380,221,587		365,738,422
Accrued investment income		130,224,625		127,229,693
Company owned life insurance contracts		74,321,377		72,513,579
Other receivables and other assets		27,344,695		19,392,720
Separate account assets		9,071,094		8,320,609
Total other assets		680,271,611		649,716,602
Total admitted assets	$	16,490,974,804		16,107,273,282

 4 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY 

Statutory Statements of Admitted Assets,

Liabilities and Stockholders’ Equity

December 31, 2024 and 2023

Liabilities and Stockholders’ Equity	2024		2023
Aggregate policy reserves:
Life and annuity policies and contracts	$	11,006,702,397		10,959,553,788
Accident and health contracts		148,621,011		153,563,457
Supplementary contracts		120,656,992		131,737,002
Total aggregate policy reserves		11,275,980,400		11,244,854,247
Policy and contract claims		63,095,952		54,552,675
Policyholders’ funds:
Premiums received in advance		432,054		449,801
Funds on deposit		21,315,928		22,200,825
Accrued policy dividends		58,459,020		53,600,431
Dividends left on deposit		202,599,359		209,982,839
Total policyholders’ funds		282,806,361		286,233,896
Pension plan administration funds		472,168,872		461,968,428
General liabilities:
Taxes, other than federal income taxes		6,108,567		7,947,993
Federal income taxes payable		8,028,347		2,128,462
Due to affiliates		599,030		990,100
Commissions		20,660,783		20,236,739
Notes payable		140,734,207		140,734,204
Pension and postretirement benefits		64,534,771		68,818,516
Accounts payable and other liabilities		68,716,847		67,116,249
Total general liabilities		309,382,552		307,972,263
Asset valuation reserve		514,606,827		483,785,118
Separate account liabilities		9,071,094		8,320,609
Total liabilities		12,927,112,058		12,847,687,236
Stockholders’ equity:
Common stock of $100 par value. Authorized 20,000 shares; issued and outstanding 15,000 shares		1,500,000		1,500,000
Additional paid-in capital		400,000		400,000
Unassigned surplus		3,561,962,746		3,257,686,046
Total stockholders’ equity		3,563,862,746		3,259,586,046
Total liabilities and stockholders’ equity	$	16,490,974,804		16,107,273,282

See accompanying notes to statutory financial statements.

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SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY 

Statutory Statements of Earnings 

Years ended December 31, 2024 and 2023

	2024			2023
Income:
Premiums and other considerations:
Life premiums	$	963,214,664			926,885,773
Annuity premiums and other fund deposits		76,015,857			74,206,784
Accident and health premiums		11,518,998			11,912,026
Supplementary contracts		13,005,771			17,380,866
Investment income, net of expenses of  $21,314,781 in 2024 and $22,023,541 in 2023		647,349,877			603,007,736
Separate account fees and other		4,100,095			3,233,993
Total income		1,715,205,262			1,636,627,178
Benefits and reserve changes:
Death benefits		347,085,317			308,568,793
Accident and health benefits		11,911,741			14,366,570
Surrender and other life insurance benefits		378,907,177			393,466,408
Annuity benefits		125,606,994			128,894,486
Net increase in aggregate reserves, certain funds on deposit, and loading on deferred and uncollected premiums		48,359,181			133,340,761
Interest on policy and contract funds		28,685,708			28,323,850
Payments on supplementary contracts		25,443,024			24,959,581
Total benefits and reserve changes		965,999,142			1,031,920,449
Other operating expenses:
Commissions		104,676,620			101,453,486
General insurance expenses		212,320,834			209,241,595
Taxes, licenses and fees		33,280,809			31,627,935
Total other operating expenses		350,278,263			342,323,016
Earnings before policyholders’ dividends, federal income taxes and realized investment gains (losses)		398,927,857			262,383,713
Policyholders’ dividends		56,961,897			52,296,381
Earnings before federal income taxes and realized investment gains (losses)		341,965,960			210,087,332
Federal income taxes		75,640,000			45,325,000
Earnings before realized investment gains (losses)		266,325,960			164,762,332
Realized investment gains (losses)		22,490,932			(4,095,127	)
Adjusted for:
Federal income tax expense		(6,585,164	)		(1,695,827	)
Transfer to interest maintenance reserve		9,496,564			16,557,277
Net realized investment gains		25,402,332			10,766,323
Net earnings	$	291,728,292			175,528,655

See accompanying notes to statutory financial statements.

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SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY 

Statutory Statements of Changes in Stockholders’ Equity

Years ended December 31, 2024 and 2023

			Additional
	Common		paid-in		Unassigned
	stock		capital		surplus
Balance, December 31, 2022	$	1,500,000		400,000		3,123,034,363
Net earnings		—		—		175,528,655
Change in unrealized investment gains, net		—		—		84,840,672
Change in asset valuation reserve		—		—		(114,401,446	)
Change in net deferred income taxes		—		—		14,788,665
Change in nonadmitted assets		—		—		(4,256,576	)
Change in net actuarial loss on pension and postretirement benefits		—		—		(348,287	)
Cash dividends to stockholders		—		—		(21,500,000	)
Balance, December 31, 2023		1,500,000		400,000		3,257,686,046
Net earnings		—		—		291,728,292
Change in unrealized investment gains, net		—		—		52,562,298
Change in asset valuation reserve		—		—		(30,821,709	)
Change in net deferred income taxes		—		—		6,706,105
Change in nonadmitted assets		—		—		11,323,724
Change in net actuarial loss on pension and postretirement benefits		—		—		(2,422,010	)
Cash dividends to stockholders		—		—		(24,800,000	)
Balance, December 31, 2024	$	1,500,000		400,000		3,561,962,746

See accompanying notes to statutory financial statements.

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SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Statutory Statements of Cash Flow

Years ended December 31, 2024 and 2023

	2024			2023
Cash from operations:
Premiums, annuity considerations, and other fund deposits	$	1,024,551,844			984,311,587
Other premiums, considerations and deposits collected		13,005,771			17,380,866
Reinsurance reserve adjustments received on reinsurance ceded		3,111,666			3,693,547
Investment income received		650,988,228			601,809,553
Separate account fees and other income received		2,292,297			1,246,324
		1,693,949,806			1,608,441,877
Life and accident and health claims paid		(347,809,478	)		(322,135,906	)
Surrender benefits paid		(377,083,749	)		(391,405,948	)
Annuity and other benefits paid to policyholders		(159,195,667	)		(162,495,912	)
		(884,088,894	)		(876,037,766	)
Commissions, taxes and other expenses paid		(344,918,136	)		(337,078,423	)
Dividends paid to policyholders		(47,441,329	)		(42,965,344	)
Federal income taxes paid		(69,740,116	)		(35,304,173	)
		(462,099,581	)		(415,347,940	)
Net cash from operations		347,761,331			317,056,171
Cash from investments:
Proceeds from investments sold, matured or repaid:
Bonds		1,265,842,482			1,032,375,138
Common and preferred stocks		163,111,366			426,491,396
Mortgage loans		134,099,688			107,543,483
Other invested assets		144,309,838			97,601,968
Federal income taxes paid on net capital gains		(6,585,164	)		(1,695,827	)
Total investment proceeds		1,700,778,210			1,662,316,158
Cost of investments acquired:
Bonds		(1,237,901,901	)		(1,085,370,961	)
Common and preferred stocks		(322,542,013	)		(312,549,385	)
Mortgage loans		(187,006,899	)		(234,531,057	)
Real estate		(2,057,619	)		(2,913,047	)
Other invested assets		(161,106,438	)		(185,029,087	)
Total investments acquired		(1,910,614,870	)		(1,820,393,537	)
Net increase in policy loans		(28,906,032	)		(21,614,433	)
Net cash from investments		(238,742,692	)		(179,691,812	)
Cash from financing and miscellaneous sources:
Payments on notes payable		—			(40,000,000	)
Other cash provided		2,659,683			6,173,462
Dividends paid to stockholders		(24,800,000	)		(21,500,000	)
Other cash applied		(48,128,955	)		(49,478,737	)
Net cash from financing and miscellaneous sources		(70,269,272	)		(104,805,275	)
Net increase in cash, cash equivalents and short-term investments		38,749,367			32,559,084
Cash, cash equivalents and short-term investments:
Beginning of year		166,610,145			134,051,061
End of year	$	205,359,512			166,610,145

See accompanying notes to statutory financial statements.

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SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(1) Corporate Structure, Basis of Presentation and Summary of Significant Accounting Policies

(a) Corporate Structure

Southern Farm Bureau Life Insurance Company (the Company) operates in the states of Arkansas, Colorado, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Texas, and Virginia. Because the Company operates within these states, the Company is subject to regulatory and market risks within this geographic area.

(b) Nature of Business

The Company is primarily engaged in the business of providing a portfolio of the usual forms of ordinary life insurance on a participating basis, term, universal, and group life insurance, annuities, and accident and health coverages.

(c) Basis of Presentation

The accompanying statutory financial statements of the Company have been prepared in conformity with accounting practices prescribed or permitted by the Mississippi Insurance Department. Prescribed statutory accounting practices include a variety of publications of the National Association of Insurance Commissioners (NAIC), as well as state laws, regulations, and general administrative rules. Permitted statutory accounting practices encompass all accounting practices not so prescribed. The Company has no permitted accounting practices that vary from prescribed accounting practices.

(d) Differences between Statutory Accounting Practices and U.S. Generally Accepted Accounting Principles

Statutory Accounting Practices (SAP) differ from GAAP in several respects, which cause differences in reported assets, liabilities, stockholders’ equity (statutory capital and surplus), net earnings and cash flows. SAP which differ from GAAP include:

● Investments in wholly owned subsidiaries are accounted for using the modified equity method (equity in earnings or losses determined on a statutory basis is included in unassigned surplus rather than earnings) and are treated as unconsolidated investments rather than being consolidated in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 810, Consolidation.

● Eligible bonds are carried at amortized cost and other bonds are carried in accordance with valuations established by the NAIC, generally at fair value. Under GAAP, bonds categorized as held to maturity are carried at amortized cost, while bonds categorized as available for sale or trading are carried at fair value.

● Investments in preferred stocks are generally carried at fair value not to exceed any currently effective call price, except for redeemable preferred stocks (NAIC 1 and 2) which shall be valued at amortized cost and all other redeemable preferred stocks (NAIC 3 to 6) shall be reported at the lower of amortized cost or fair value. Under GAAP, preferred stocks are carried at fair value.

● Certain assets, designated as nonadmitted assets, have been deducted from unassigned surplus.

 9 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

● Aggregate reserves for life, annuities and accident and health policies are based on statutory requirements as described in the Valuation Manual. Reserves for health insurance are determined based on statutory morbidity and interest. Under GAAP, the reserves are based on either (i) the present value of future benefits less the present value of future net premiums based on mortality, morbidity, and other assumptions which were appropriate at the time the policies were issued or acquired or (ii) the account value for certain contracts without significant life contingencies.

● The interest maintenance reserve (IMR) represents the deferral of interest-related realized gains and losses, net of tax, on primarily fixed maturity investments, which are amortized into income over the remaining life of the investment sold or called. No such reserve is required under GAAP.

● Deferred income taxes are recognized for both SAP and GAAP; however, the amount permitted to be recognized is generally more restrictive under SAP. Changes in deferred tax assets and liabilities are charged or credited directly to unassigned surplus under SAP. Under GAAP, these changes generally are included in net income.

● The asset valuation reserve (AVR) represents a contingency reserve for credit-related risk on most invested assets of the Company and is charged to statutory surplus. No such reserve is required under GAAP.

● Policy acquisition costs are expensed as incurred, while under GAAP, these costs are deferred and recognized over either (1) the expected premium paying period or (2) the estimated life of the contract.

● Reserves are reported net of ceded reinsurance; under GAAP, reserves relating to business in which the ceding company is not legally relieved of its liability are reported gross with reinsurance receivable being reflected as an asset.

● The Statements of Earnings are different in certain respects, with annual life premiums being recognized as revenue upon issue and subsequently upon anniversary. Annuity premiums are recognized as revenue when collected. Accident and health premiums are earned on a pro rata basis over the term of the policies. Under GAAP, premiums on life insurance policies are recognized when due; premiums on annuity contracts are not recognized as revenue but as deposits, including those held in Separate Accounts.

● Revenues for universal life policies and investment products consist of the entire premium received and benefits represent the death benefits paid and the change in policy reserves. Under GAAP, premiums received in excess of policy charges are not recognized as premium revenue and benefits represent the excess of benefits paid over the policy account values and interest credited to the account values.

● The Statements of Cash Flow differ in certain respects from the presentation required by ASC 230, Statement of Cash Flows, including the presentation of the changes in cash, cash equivalents and short-term investments instead of cash and cash equivalents. Short-term investments include securities with maturities, at the time of acquisition, of one year or less. For statutory purposes, there is no reconciliation between net income and cash from operations.

● The provision for participating policyholders’ dividends is determined by the board of directors rather than being recorded ratably over the premium-paying period in accordance with dividend scales contemplated at the time the policies were issued.

 10 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

● Pension and postretirement benefits expense and the related financial statement disclosures are not determined in accordance with ASC 715, Compensation – Retirement Benefits.

● In accordance with Statements of Statutory Accounting Principles (SSAP), investments in low income housing tax credits are accounted for using the amortized cost method in accordance with GAAP with a modification to include tax benefits during the holding period.

● The statutory basis financial statements do not include reporting and display of comprehensive income and its components as specified under GAAP.

The aggregate effect on the accompanying statutory financial statements of the variations from GAAP has not been determined, but is presumed to be material.

The preparation of financial statements requires management to make informed judgments and estimates that affect the reported amounts of assets and liabilities (including disclosure of contingent assets and liabilities) at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

(e) Recognition of Revenue and Related Expenses

Life premiums are recognized as income over the premium paying period of the related policies. For accident and health contracts, premiums are earned on a pro rata basis over the applicable policy period. Premiums and fund deposits for universal life, single premium immediate annuity and single premium deferred annuity contracts are reported as revenue when collected. Benefits and other fund withdrawals are expensed as incurred. Policy acquisition and maintenance expenses are charged to operations as incurred.

(f) Financial Instruments

Investments in bonds are generally stated at amortized cost, except for bonds where the NAIC rating has fallen to 6 and the NAIC fair value has fallen below amortized cost, in which case they are carried at NAIC fair value. Interest revenue is generally recognized when earned.

Amortization of premiums and discounts on mortgage and asset-backed bonds is based on anticipated prepayments at the date of purchase, with significant changes in estimated cash flows from original purchase assumptions recognized using the retrospective method. Prepayment assumptions for mortgage and asset-backed bonds are obtained from broker-dealer surveys. Amortization is accounted for using a method that approximates the interest method.

Common stocks of unaffiliated companies are carried at fair value. Preferred stocks are valued at fair value not to exceed any currently effective call price.

 11 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

The Company periodically reviews the portfolio to evaluate the necessity of recording impairment losses for other-than-temporary declines in the fair value of investments. The Company considers the following factors in determining that a decline in value is other-than-temporary: the extent and duration of the decline, the reason for the decline (either interest or credit related), the current conditions and near term financial prospects of the issuer, and the Company’s ability and intent to hold the security for a period of time sufficient to allow for recovery. If management determines that the decline in fair value is other-than-temporary, the cost of the investment is adjusted to fair value and a realized loss is recognized in the statutory statement of earnings. Subsequent recoveries in fair value are not recognized until the security is sold.

Short-term investments are stated at cost, which approximates fair value. Real estate is stated at depreciated cost. Real estate held for sale is carried at the lower of depreciated cost or fair value less encumbrances and estimated costs to sell the property. Mortgage loans and policy loans are stated at their unpaid principal balance, less an allowance for loan losses, if any. Limited partnership interests are accounted for using the equity method.

Low income housing tax credit (LIHTC) property investments are initially recorded at cost and the excess of the carrying amount of the investment over its estimated residual value is amortized over the period in which tax benefits are allocated to the Company. The amount amortized during 2024 and 2023 was $2,035,952 and $4,262,635, respectively, and is reflected as a component of net investment income. The number of remaining years of unexpired tax credits varies from 1 to 4 years with a weighted average of 3.4. The required holding period varies from 1 to 8 years with a weighted average of 5.7 years. Currently, the properties are not subject to any regulatory reviews. The aggregate amount of LIHTC does not exceed 10% of the Company’s total assets. At December 31, 2024, there was one impairment in the amount of $3,463 related to the LIHTC investments.

Realized investment gains and losses, determined on a specific identification basis, are reduced by amounts transferred to IMR and are reflected as an element of net income, net of related income taxes. For bonds and preferred stock carried at NAIC fair value, the difference between amortized cost and fair value is treated as an unrealized loss in unassigned surplus. Changes in fair values of common stock and changes in statutory equity of unconsolidated subsidiaries are reflected as unrealized gains and losses on investments in unassigned surplus.

(g) Nonadmitted Assets

Certain assets, principally furniture, equipment, agents’ debit balances, prepaid expenses, and certain deferred income tax assets have been designated as nonadmitted assets and excluded from assets by a charge to statutory surplus. Changes in these assets are presented as changes in unassigned surplus.

(h) Aggregate Reserves

Policy reserves on annuity and supplementary contracts are calculated using the Commissioners’ Annuity Reserve Valuation Method. The valuation interest assumptions follow the Standard Valuation Law and Valuation Manual and vary by the contracts’ characteristics and their issue year.

 12 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

Policy reserves on life contracts are based on statutory mortality and valuation interest rates using the Commissioners’ Reserve Valuation Method or the Net Level Premium Reserve Method. The valuation interest and mortality assumptions follow the Standard Valuation Law and vary by the contracts’ characteristics and their issue year. Liabilities for life policy reserves and interest-sensitive insurance contracts are based on statutory mortality and interest requirements.

Accident and health benefit reserves are developed by actuarial methods and are determined based on published tables or anticipated experience using specified statutory interest rates, mortality or morbidity assumptions and valuation methods that will provide, in the aggregate, reserves that are greater than or equal to the amounts required by law.

In 2018, the Company early-adopted Principle-Based Reserves (PBR) on its 2017 CSO Mortality insurance products. These products include term policies sold January 1, 2018 and later, and also permanent policies and riders sold October 1, 2019 and later.

(i) Policy and Contract Claims

The liability for claims represents the amount needed to provide for the estimated ultimate cost of settling claims relating to insured events that have occurred on or before the end of the respective reporting period. The liability includes a provision for (a) claims that have been reported to the insurer, and (b) claims related to insured events that have occurred but that have not been reported to the insurer.

Reserve estimates are subject to the effects of trends in claim severity and frequency. Although considerable variability is inherent in such estimates, management believes that the reserves are adequate. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes known; such adjustments are included in current operations.

(j) Interest Maintenance Reserve

The IMR represents the deferral of interest-related realized capital gains and losses, net of tax, primarily on fixed maturity investments. These gains and losses are amortized into investment income on a level yield method over the estimated remaining life of the investment sold or called.

(k) Asset Valuation Reserve

The AVR is a reserve established to offset the potential for credit-related investment realized and unrealized losses on most investments and is recorded as a liability through a charge to statutory surplus. The reserve is calculated based on credit quality using factors provided by the NAIC.

 13 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(l) Federal Income Taxes

The Company’s method of accounting for income taxes is the liability method. Under the liability method, deferred tax assets and liabilities are adjusted to reflect changes in statutory tax rates which impact surplus in the period such changes are enacted. Deferred income taxes are recognized, subject to statutory limitations, for temporary differences between the financial reporting basis and income tax basis of assets and liabilities, based on enacted tax laws and statutory tax rates applicable to the periods in which the temporary difference is expected to reverse.

(m) Reinsurance

Premiums, commissions, expense reimbursement, and claims related to reinsured business are accounted for on a basis consistent with that used in accounting for the original policies issued and with the terms of the reinsurance contracts and are reported net of amounts ceded to other companies.

(n) Guaranty Fund Assessments

State guaranty fund assessments are recognized when (a) an assessment has been asserted or information available prior to issuance of the financial statements indicates it is probable that an assessment will be asserted, (b) the underlying cause of the asserted or probable assessment has occurred on or before the date of the financial statements, and (c) the amount of the loss can be reasonably estimated. In addition, the Company may recognize an asset for an amount when it is probable that a paid or accrued assessment will result in an amount that is recoverable from premium tax offsets or policy surcharges from in-force policies.

(o) Electronic Data Processing (EDP) Equipment and Software

EDP equipment and operating software are admitted assets to the extent they conform to the requirement of SSAP No. 16, EDP Equipment and Software. These assets, net of accumulated depreciation, are included in the other receivables and other assets line item in the accompanying statutory statements of admitted assets, liabilities and stockholders’ equity. The Company computes depreciation using an accelerated depreciation method (MACRS) for EDP equipment and straight line depreciation method for software.

EDP equipment and operating software assets and accumulated depreciation related to these assets at December 31, 2024 and 2023 were as follows:

	2024			2023
Assets	$	15,724,830			15,344,417
Accumulated depreciation		(13,239,664	)		(11,710,531	)
Net assets	$	2,485,166			3,633,886

Depreciation expense related to these assets was $1,529,133 in 2024 and $2,161,447 in 2023.

 14 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(p) Assets Held in Separate Accounts and Liabilities Related to Separate Accounts

Separate account assets and liabilities reported in the accompanying statutory statements of admitted assets, liabilities and stockholders’ equity represent funds that are separately administered for variable annuity and variable life contracts and for which the contract holder, rather than the Company, bears the investment risk. Separate account assets are reported at fair value. The operations of the separate accounts are not included in the accompanying statutory financial statements. Policy administration and investment management fees charged on separate account policyholder deposits are included in separate account fees and other income on the statutory statements of earnings.

(q) Recently Issued Accounting Pronouncements

In March 2024, the NAIC adopted revisions to SSAP No. 26, Bonds, and SSAP No. 43, Loan-Backed and Structured Securities, pursuant to the Statutory Accounting Principles Working Group's Investment Classification Project. The revisions stem from a comprehensive review referred to as the "Principles-Based Bond Project" to establish principal concepts for determining whether a debt security qualifies for reporting as a bond, and accordingly, reported on Schedule D as an issuer obligation or an asset-backed security. Securities that do not qualify as a bond under the new principles-based bond definition will be reclassified. This guidance is effective January 1, 2025. Based on the Company's assessment of the bond portfolio as of December 31, 2024, no material reclassifications are expected in 2025.

In 2023, the Company adopted the option to admit the net negative (disallowed) Interest Maintenance Reserve (Negative IMR) per the Interpretation of the Statutory Accounting Principles (E) Working Group (INT 23-01). Admittance of the Negative IMR in 2023 increased assets and surplus by $8,710,019 in 2023. At December 31, 2024 Negative IMR was $16,117,295, increasing assets and surplus by an additional $7,407,276.

(r) Reclassifications

Certain prior period adjustments have been reclassified to conform to the current year presentation. These reclassifications have no impact on stockholders’ equity or net earnings.

(s) Subsequent Events

At its regularly scheduled meeting on February 18, 2025, the Board of Directors of the Company declared a dividend on its outstanding common stock totaling $40,000,000 paid on February 18, 2025 to the ten shareholders of record at February 18, 2025. The shareholders of record at February 18, 2025 were the Farm Bureau entities representing the states of Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Texas, and Virginia. The dividend declaration and payment was approved in accordance with the Articles of Association and Bylaws of the Company.

The Company has evaluated all other subsequent events through April 24, 2025, the date the financial statements were available to be issued.

 15 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(2) Investments

(a) Admitted Bonds and Preferred and Common Stocks

At December 31, 2024 and 2023, the cost or amortized cost, gross unrealized gains and losses, and NAIC fair values of the Company’s admitted bonds and preferred and common stocks, excluding stocks of affiliates, were as follows:

	Cost or		Gross		Gross
	amortized		unrealized		unrealized			Estimated
	cost		gains		losses			fair value
2024:
Bonds:
U.S. Treasury securities and obligations of U.S. government corporations and agencies:
U.S. government	$	86,535,794		—		(4,483,497	)		82,052,297
Mortgage-backed securities:
U.S. government		488,128,061		657,371		(98,196,175	)		390,589,257
Special revenue		856,424,993		1,530,961		(137,413,939	)		720,542,015
Industrial and miscellaneous		708,809,487		3,520,594		(27,755,277	)		684,574,804
Corporate and other securities:
Special revenue		1,306,851,911		2,346,346		(141,684,104	)		1,167,514,153
Industrial and miscellaneous		6,903,299,780		39,221,198		(370,376,507	)		6,572,144,471
Hybrid securities		46,184,031		2,503,939		(1,240,570	)		47,447,400
Total bonds	$	10,396,234,057		49,780,409		(781,150,069	)		9,664,864,397
Preferred stocks	$	32,017,839		2,408,282		(792,915	)		33,633,206
Common stocks		864,396,198		223,221,623		(19,010,768	)		1,068,607,053
Total stocks	$	896,414,037		225,629,905		(19,803,683	)		1,102,240,259

 16 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements 

December 31, 2024 and 2023

	Cost or		Gross		Gross
	amortized		unrealized		unrealized			Estimated
	cost		gains		losses			fair value
2023:
Bonds:
U.S. Treasury securities and obligations of U.S. government corporations and agencies:
U.S. government	$	103,277,021		—		(4,709,333	)		98,567,688
Mortgage-backed securities:
U.S. government		482,337,410		1,500,263		(85,021,762	)		398,815,911
Special revenue		869,346,197		4,667,442		(110,973,215	)		763,040,424
Industrial and miscellaneous		696,940,198		2,819,992		(45,439,174	)		654,321,016
Corporate and other securities:
Special revenue		1,279,024,302		5,436,536		(130,537,834	)		1,153,923,004
Industrial and miscellaneous		6,966,105,009		63,970,158		(392,077,043	)		6,637,998,124
Hybrid securities		50,237,215		2,174,119		(2,111,063	)		50,300,271
Bank Loans		914,285		25,136		(44,451	)		894,970
Total bonds	$	10,448,181,637		80,593,646		(770,913,875	)		9,757,861,408
Preferred stocks	$	36,327,532		1,681,569		(2,644,625	)		35,364,476
Common stocks		676,137,776		169,045,606		(12,738,116	)		832,445,266
Total stocks	$	712,465,308		170,727,175		(15,382,741	)		867,809,742

 17 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

The estimated fair value and unrealized losses for debt and equity securities in an unrealized loss position at December 31, 2024 and 2023 were as follows:

	Held in a continuous unrealized loss position
	Less than 12 months					12 months or more					Total
	Estimated		Unrealized			Estimated		Unrealized			Estimated		Unrealized
2024	fair value		losses			fair value		losses			fair value		losses
Bonds:
U.S. Treasury securities and obligations of U.S. government corporations and agencies:
U.S. government	$	76,194,656		(4,344,099	)		5,857,641		(139,398	)		82,052,297		(4,483,497	)
Mortgage-backed securities		327,945,137		(14,120,139	)		1,082,870,688		(249,245,252	)		1,410,815,825		(263,365,391	)
Corporate and other securities		1,647,335,100		(37,943,938	)		4,535,916,393		(475,357,243	)		6,183,251,493		(513,301,181	)
Total bonds	$	2,051,474,893		(56,408,176	)		5,624,644,722		(724,741,893	)		7,676,119,615		(781,150,069	)
Preferred stocks	$	—		—			17,969,350		(792,915	)		17,969,350		(792,915	)
Common stocks		295,962,168		(19,010,768	)		—		—			295,962,168		(19,010,768	)
Total stocks	$	295,962,168		(19,010,768	)		17,969,350		(792,915	)		313,931,518		(19,803,683	)
Derivative investments	$	—		—			—		—			—		—

	Held in a continuous unrealized loss position
	Less than 12 months						12 months or more					Total
	Estimated			Unrealized			Estimated		Unrealized			Estimated			Unrealized
2023	fair value			losses			fair value		losses			fair value			losses
Bonds:
U.S. Treasury securities and obligations of U.S. government corporations and agencies:
U.S. government	$	54,628,688			(596,800	)		43,939,000		(4,112,533	)		98,567,688			(4,709,333	)
Mortgage-backed securities		238,773,918			(6,745,326	)		1,262,766,245		(234,688,825	)		1,501,540,163			(241,434,151	)
Corporate and other securities		566,103,920			(19,279,596	)		5,537,554,172		(505,490,795	)		6,103,658,092			(524,770,391	)
Total bonds	$	859,506,526			(26,621,722	)		6,844,259,417		(744,292,153	)		7,703,765,943			(770,913,875	)
Preferred stocks	$	7,200,371			(335,720	)		17,660,512		(2,308,905	)		24,860,883			(2,644,625	)
Common stocks		41,621,788			(1,879,515	)		62,696,099		(10,858,601	)		104,317,887			(12,738,116	)
Total stocks	$	48,822,159			(2,215,235	)		80,356,611		(13,167,506	)		129,178,770			(15,382,741	)
Derivative investments	$	(131,578	)		(663,281	)		—		—			(131,578	)		(663,281	)

 18 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

Interest rate volatility continued to be high in 2024. The yield on the 10-year U.S. Treasury Note began the year at 3.88%, peaked in April at 4.71%, troughed in September at 3.62%, then moved higher throughout the fourth quarter to end the year at 4.57%. Approximately 78% of bonds in the portfolio have an unrealized loss position, including many of the bonds purchased in 2024. This is largely due to a higher interest rate environment rather than credit stress, as credit spreads were near historic tights. Bonds with loss positions had a loss of 9.2% on average.

More than half of the unrealized losses in the common and preferred stock portfolios were represented by ETFs and mutual funds that invest in fixed income securities, so they suffered from the same interest rate impacts that affected the Company’s bond portfolio. Another 15% was represented by a single emerging market stock fund (TSEGX) that materially underperformed its benchmark. When excluding bond funds, 96% of the stock portfolio had an unrealized gain.

Securities with material unrealized losses resulting from fundamental deterioration in quality were reviewed in accordance with the Company’s impairment policy as described in note 1(f) and were deemed not to be other than temporarily impaired.

Due to the subjective nature of the Company’s analysis and estimates of fair value along with the judgment that must be applied in the analysis, it is possible that the Company could reach a different conclusion whether or not to impair a security if it had access to additional information. Investment securities are exposed to various risks, including risks related to market interest rates, prepayment characteristics, and default. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is possible that changes in risks in the near term could result in other-than-temporary impairments recorded in the statutory statement of earnings.

The scheduled maturity distribution of the long-term bond portfolio at December 31, 2024 follows. Expected maturities may differ from scheduled contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties.

	Book/adjusted		Estimated
	carry value		fair value
Due in one year or less	$	623,504,500		620,820,105
Due after one year through five years		2,741,055,022		2,680,483,998
Due after five years through ten years		3,180,416,433		2,961,432,898
Due after ten years		1,747,614,070		1,558,973,920
		8,292,590,025		7,821,710,921
Mortgage-backed and hybrid securities		2,099,546,572		1,843,153,476
	$	10,392,136,597		9,664,864,397

 19 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

The Company owns certain assets which are considered to be restricted or not under the Company’s exclusive control. As required by law, the Company has investments on deposit with governmental authorities and banks for the protection of policyholders. In addition, the Company owns common stock shares of Federal Home Loan Bank (FHLB) which enables the Company, as a member, to borrow funds for future investment strategies and for other liquidity needs. The Company also has pledged assets as collateral to the FHLB for the purpose of backing funding agreements and notes payable.

At December 31, 2024 and 2023, the restricted assets of the Company were as follows:

	2024				2023
	Book/adjusted		Fair		Book/adjusted		Fair
	carry value		value		carry value		value
On deposit with states	$	6,067,861		5,928,462		5,941,875		5,729,141
FHLB – Membership stock		6,443,200		6,443,200		6,310,900		6,310,900
FHLB – Activity stock		4,448,000		4,448,000		4,448,000		4,448,000
FHLB – Excess stock		3,164,500		3,164,500		4,468,300		4,468,300
Pledged as collateral to FHLB		262,985,749		222,031,882		272,787,863		235,793,156
Total restricted assets	$	283,109,310		242,016,044		293,956,938		256,749,497
Maximum pledged as collateral to FHLB during reporting period	$	272,366,431		234,128,512		275,509,681		243,797,584

The credit quality of the long-term bond portfolio at December 31, 2024 and 2023 follows. The quality ratings represent NAIC designations.

	2024					2023
	Book/adjusted					Book/adjusted
	carry value		Percentage			carry value		Percentage
Class 1 – highest quality	$	6,231,788,460		60.0	%	$	6,235,488,338		59.7	%
Class 2 – high quality		3,897,126,611		37.5			3,860,554,721		37.0
Class 3 – medium quality		127,010,419		1.2			206,286,770		2.0
Class 4 – low quality		61,505,718		0.6			48,170,377		0.4
Class 5 – lower quality		64,471,013		0.6			93,894,837		0.9
Class 6 – in or near default		10,234,376		0.1			1,049,466		—
	$	10,392,136,597		100.0	%	$	10,445,444,509		100.0	%

Bonds with ratings ranging from AAA/Aaa to BBB/Baa3, as assigned by a rating service such as Standard and Poor’s Corporation or Moody’s Investment Services, are generally regarded as investment grade securities. The NAIC regards A ratings as Class 1 (highest quality), BBB/Baa ratings as Class 2 (high quality), BB/Ba ratings as Class 3 (medium quality), B ratings as Class 4 (low quality), all C ratings as Class 5 (lower quality), and D ratings as Class 6 (in or near default).

 20 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements 

December 31, 2024 and 2023

A portion of bonds designated as Class 5 (lower quality) are classified as 5GI securities. 5GI securities are not valued by the NAIC’s Securities Valuation Office (SVO) but are self-designated by the Company with the assurance that the issuer is current in all principal and interest payments. The SVO allows this designation to be assigned. The Company also holds 5GI preferred stock.

The detail of 5GI securities at December 31, 2024 and 2023 follows:

	Number of 5G1 Securities				Aggregate Book Adjusted Carrying Value				Aggregate Fair Value
	2024		2023		2024		2023		2024		2023
Bonds		9		7	$	53,976,804		45,045,277		50,909,951		39,626,183
Preferred stock		2		2		11,061,231		9,872,913		11,061,231		9,872,913
		11		9	$	65,038,035		54,918,190		61,971,182		49,499,096

 21 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(b) Mortgage Loans

At December 31, 2024 and 2023, the Company’s mortgage loan portfolio consisted of the following:

	2024		2023
Commercial	$	2,122,332,698		2,071,054,939
Residential		1,394,670		1,631,737
Total	$	2,123,727,368		2,072,686,676
Average loan balance	$	3,925,559		3,940,469

The mortgage loan portfolio is monitored on an individual loan basis by use of operating statement reviews, property inspection reports, and debt service coverage reports and is well diversified by property type, geographic location, and loans to any one borrower.

	Percentage of Portfolio
Mortgage loans by property type	2024			2023
Offices		27.7	%		30.5	%
Warehouse/Industrial		33.4			30.3
Apartments		17.3			18.9
Retail		19.4			17.9
Other		2.2			2.3
Residential		—			0.1
Total		100.0	%		100.0	%

	Percentage of Portfolio
Mortgage loans by geographic location	2024			2023
South Atlantic		24.7	%		23.2	%
Pacific		18.9			19.3
East North Central		15.5			16.4
Mountain		14.8			13.9
West South Central		13.2			13.0
East South Central		8.4			9.5
Middle Atlantic		3.9			4.1
West North Central		0.3			0.4
New England		0.3			0.2
Total		100.0	%		100.0	%

 22 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

At December 31, 2024 and 2023, the Company had the following percentage of mortgage loans with underlying collateral located in the following states that were greater than 10% of the total:

	2024			2023
Exposure in California		17.40	%		18.00	%
Exposure in Florida		14.60			13.50

The Company maintains a mortgage loan portfolio that consists of first lien mortgage loans. The commercial loans, which were originated by the Company through a network of mortgage bankers, were made only on developed and leased properties. The commercial mortgage loans have a maximum loan-to-value ratio of 75% at the date of origination. The Company generally does not engage in construction lending or land loans.

The minimum and maximum interest rates on mortgage loans originated during 2024 and 2023 were as follows:

	2024			2023
Maximum interest rate		6.58	%		7.45	%
Minimum interest rate		5.25			4.99

As of December 31, 2024, all of the Company’s mortgages were in good standing with no principal or interest payments delinquent more than 90 days.

(c) Net Investment Income

For the years ended December 31, 2024 and 2023, the sources of investment income of the Company were as follows:

	2024			2023
Bonds	$	435,497,957			428,709,585
Preferred and common stocks		27,055,825			23,076,903
Mortgage loans		81,499,982			71,018,821
Policy loans		46,234,886			44,047,647
Cash, cash equivalents and short-term investments		9,659,441			6,493,847
Other		70,805,855			50,816,205
Gross investment income		670,753,946			624,163,008
Amortization of interest maintenance reserve		(2,089,288	)		868,269
Investment expenses		(21,314,781	)		(22,023,541	)
Net investment income	$	647,349,877			603,007,736

 23 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(d) Investment Gains and Losses

For the years ended December 31, 2024 and 2023, the proceeds, gross gains and gross losses from sales, calls, and other disposals on bonds, common stocks, and preferred stocks were as follows:

	Proceeds				Gross gains				Gross losses
	2024		2023		2024		2023		2024		2023
Bonds :
Sales	$	362,379,541		307,684,283		3,271,549		291,505		16,452,698		21,288,691
Calls		81,428,907		113,077,441		658,543		399,856		42,052		773,927
Other disposals		826,536,978		612,353,575		8,103		14,498		619,213		32,541
Totals	$	1,270,345,426		1,033,115,299		3,938,195		705,859		17,113,963		22,095,159
Common stock:
Sales	$	179,174,703		425,377,580		25,778,792		44,634,568		3,354,770		24,292,763
Tax free exchange		—		—		—		—		—		—
Other disposals		—		—		—		—		—		—
Totals	$	179,174,703		425,377,580		25,778,792		44,634,568		3,354,770		24,292,763
Preferred stock:
Sales	$	1,982,053		613,903		—		—		184,147		2,827,964
Calls		5,500,000		500,000		490,831		28,146		—		—
Other disposals		1,000,000		—		27,929		—		—		—
Totals	$	8,482,053		1,113,903		518,760		28,146		184,147		2,827,964

(e) Other-than-temporary impairment (OTTI)

The total other-than-temporary impairment loss recognized in 2024 and 2023 was as follows:

	2024		2023
Bonds	$	3,445,684		648,840
Limited partnerships		1,907,890		1,975,432
Total	$	5,353,574		2,624,272

 24 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(f) Securities Lending Agreement

The Company has securities lending agreements whereby unrelated parties, primarily large financial institutions, borrow securities from the Company. The Company’s agreement with its securities lending agent prohibits the acceptance of cash collateral and requires that collateral be in the form of securities issued by the U.S. Government and its Agencies. Accordingly, the Company has no reinvestment risk associated with securities lending collateral. Collateral is held separately by the securities lending agent or a sub-custodian of the agent and does not appear in the asset schedules. The Company requires a minimum of 102% of the fair value of the security lent to be provided as collateral. The Company continues to retain control over and receive interest on the loaned securities, and accordingly, the loaned securities continue to be reported in our asset schedules. The securities loaned are on open terms and can be returned to the Company on the next business day requiring a return of the collateral. The Company cannot access the collateral unless the borrower fails to deliver loaned securities. To further minimize the credit risks related to this securities lending program and the associated counterparties, the Company receives indemnification from the securities lending agent.

The estimated fair value of securities on loan under the agreement was $137,927,343 and $78,398,245 at December 31, 2024 and 2023, respectively. Collateral for the securities lending agreement, which is not included in the Company’s Statutory Statements of Admitted Assets, Liabilities and Stockholders’ Equity was $141,178,191 and $81,122,573 at December 31, 2024 and 2023, respectively.

 25 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(3) Aggregate Reserves

The Company waives deduction of deferred fractional premiums upon death of the insured and returns any portion of the final premium paid beyond the policy month of death. Surrender values are not promised in excess of the legally computed reserves.

Additional premiums are charged for policies issued on substandard lives according to underwriting classification. For most policies the reserve held equals the reserve calculated in the same manner as a standard policy plus one-half of the additional premium charge for the policy year. For universal life policies issued 2001 and later, single premium whole life policies issued August 2012 and later, and term policies subject to VM-20, the reserve is calculated in the same manner as for standard policies but using substandard mortality in place of standard rates. For older single premium policies, the corresponding reserve is the standard reserve plus an amount equal to the additional single premium amortized over fifteen years.

The Company had $22,624,562,610 and $26,963,564,630 at December 31, 2024 and 2023, respectively, of insurance in force for which the gross premiums were less than the net premiums according to the standard of valuation set by the State of Mississippi. Reserves to cover the above deficiency totaled $82,753,863 and $104,790,599 at December 31, 2024 and 2023, respectively.

The Company accounts for its policyholder dividends based on SSAP No. 51R, Life Contracts. Premiums under individual life participating policies were $603,692,808 in 2024 and $578,387,378 in 2023. The Company paid dividends in the amount of $52,103,307 in 2024 and $47,828,693 in 2023 to policyholders and did not allocate any additional income to such policyholders.

Liabilities for life insurance products principally use the 1958 CSO table assuming interest rates ranging from 2½% to 4½%, the 1980 CSO tables assuming interest rates ranging from 4% to 5%, the 2001 CSO tables assuming interest rates of 3% to 4%, and the 2017 CSO tables assuming interest rates of 3% to 4½%. Life products issued under the 2017 CSO basis are valued under the reserve requirements defined in VM-20 of the Valuation Manual.  This includes term policies issued January 1, 2018 and later, as well as term riders and permanent products issued October 1, 2019 and later.  Liabilities for most annuities use the 1971 IAM, 1983 Table A, or the Annuity 2000 tables with interest rates ranging from 3% to 8% and the 2012 IAR tables with interest rates ranging from 1% to 5½%.

 26 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

As of December 31, 2024 and 2023, the following table summarizes the aggregate reserves for the Company by line of business:

	2024		2023
Individual life:
Traditional	$	7,347,324,270		7,054,789,452
Universal		775,111,929		810,239,436
Total individual life		8,122,436,199		7,865,028,888
Group life		9,866,757		9,446,007
Total life		8,132,302,956		7,874,474,895
Annuities:
Individual:
Immediate		124,910,017		122,735,183
Deferred		2,265,123,977		2,450,345,769
Total individual annuities		2,390,033,994		2,573,080,952
Group annuities		38,305,135		40,794,634
Total annuities		2,428,339,129		2,613,875,586
Individual supplementary contracts with life contingencies		264,593,210		268,462,372
Other		181,467,102		202,740,935
Accident and health:
Active life – Individual		117,185,490		119,345,490
Active life – Group		1,554		1,554
Claim reserve – Individual		25,898,841		26,951,143
Claim reserve – Group		5,535,126		7,265,270
Total accident and health aggregate reserves		148,621,011		153,563,457
Supplementary contracts without life contingencies		120,656,992		131,737,002
Total aggregate reserves	$	11,275,980,400		11,244,854,247

 27 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

Withdrawal characteristics of annuity actuarial reserves, deposit type contract funds, and life actuarial reserves as of December 31, 2024, were as follows:

(a) Individual Annuities

			Separate
			account		Separate
	General		with		account
	account		guarantees		nonguaranteed		Total		% of total
1. Subject to discretionary withdrawal:
(a) With market value adjustment	$	—		—		—		—		—	%
(b) At book value less current surrender charge of 5% or more		42,361,779		—		—		42,361,779		1.593
(c) At fair value		—		—		5,348,116		5,348,116		0.201
(d) Total with market value adjustment or at fair value (Total of a through c)		42,361,779		—		5,348,116		47,709,895		1.794
(e) At book value without adjustment (minimal or no charge or adjustment)		2,222,762,197		—		—		2,222,762,197		83.563
2. Not subject to discretionary withdrawal		389,503,228		—		—		389,503,228		14.643
3. Total (gross: direct + assumed)		2,654,627,204		—		5,348,116		2,659,975,320		100.000
4. Reinsurance ceded		—		—		—		—
5. Total (net) (3) – (4)	$	2,654,627,204		—		5,348,116		2,659,975,320
6. Amount in A(1)b that will move to A(1)e next year	$	42,361,779		—		—		42,361,779

(b) Group Annuities

			Separate
			account		Separate
	General		with		account
	account		guarantees		nonguaranteed		Total		% of total
1. Subject to discretionary withdrawal:
(a) With market value adjustment	$	1,963,315		—		—		1,963,315		5.125	%
(b) At book value less current surrender charge of 5% or more		—		—		—		—		—
(c) At fair value		—		—		—		—		—
(d) Total with market value adjustment or at fair value (Total of a through c)		1,963,315		—		—		1,963,315		5.125
(e) At book value without adjustment (minimal or no charge or adjustment)		35,659,010		—		—		35,659,010		93.092
2. Not subject to discretionary withdrawal		682,810		—		—		682,810		1.783
3. Total (gross: direct + assumed)		38,305,135		—		—		38,305,135		100.000
4. Reinsurance ceded		—		—		—		—
5. Total (net) (3) – (4)	$	38,305,135		—		—		38,305,135
6. Amount in A(1)b that will move to A(1)e next year	$	—		—		—		—

 28 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(c) Deposit-Type Contracts

			Separate
			account		Separate
	General		with		account
	account		guarantees		nonguaranteed		Total		% of total
1. Subject to discretionary withdrawal:
(a) With market value adjustment	$	472,168,872		—		—		472,168,872		57.811	%
(b) At book value less current surrender charge of 5% or more		—		—		—		—		—
(c) At fair value		—		—		—		—		—
(d) Total with market value adjustment or at fair value (Total of a through c)		472,168,872		—		—		472,168,872		57.811
(e) At book value without adjustment (minimal or no charge or adjustment)		343,873,668		—		—		343,873,668		42.103
2. Not subject to discretionary withdrawal		698,611		—		—		698,611		0.086
3. Total (gross: direct + assumed)		816,741,151		—		—		816,741,151		100.000
4. Reinsurance ceded		—		—		—		—
5. Total (net) (3) – (4)	$	816,741,151		—		—		816,741,151
6. Amount in A(1)b that will move to A(1)e next year	$	—		—		—		—

A reconciliation of annuity actuarial reserves and deposit type contract funds as of December 31, 2024 is as follows:

	Amount
Life and accident and health annual statement:
1. Exhibit 5, annuities section, total (net)	$	2,428,339,129
2. Exhibit 5, supplementary contracts with life contingencies section, total (net)		264,593,210
3. Exhibit of deposit-type contracts, line 14, column 1		816,741,151
4. Subtotal		3,509,673,490
Separate account assets statement:
5. Exhibit 3, line 0299999, column 2		5,348,116
6. Exhibit 3, line 0399999, column 2		—
7. Policyholder dividend and coupon accumulations		—
8. Policyholder premiums		—
9. Guaranteed interest contracts		—
10. Other contract deposit funds		—
11. Subtotal		5,348,116
12. Combined total	$	3,515,021,606

 29 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(d) Life Contracts

	General account				Separate account nonguaranteed
	Account				Account
		value	Cash value	Reserve		value	Cash value	Reserve
A. Subject to discretionary withdrawal:
(1) Term policies with cash value	$	—	—	—		—	—	—
(2) Universal life		770,245,271	770,050,407	774,149,610		—	—	—
(3) Universal life with secondary guarantees		—	—	—		—	—	—
(4) Indexed universal life		—	—	—		—	—	—
(5) Indexed universal life with secondary guarantees		—	—	—		—	—	—
(6) Indexed life		—	—	—		—	—	—
(7) Other permanent cash value life insurance		—	5,305,175,784	6,018,095,250		—	—	—
(8) Variable life		—	—	—		—	—	—
(9) Variable universal life		1,713,762	1,713,762	1,736,241		3,722,962	3,722,962	3,722,962
(10) Miscellaneous reserves		—	—	—		—	—	—
B. Not Subject to discretionary withdrawal:
(1) Term policies without cash value		XXX	XXX	1,464,352,621		XXX	XXX	—
(2) Accidental death benefits		XXX	XXX	559,239		XXX	XXX	—
(3) Disability – Active lives		XXX	XXX	20,109,372		XXX	XXX	—
(4) Disability – Disabled lives		XXX	XXX	71,160,472		XXX	XXX	—
(5) Miscellaneous reserves		XXX	XXX	91,347,530		XXX	XXX	—
C. Total (gross: direct + assumed)		771,959,033	6,076,939,953	8,441,510,335		3,722,962	3,722,962	3,722,962
D. Reinsurance ceded		—	—	127,740,277		—	—	—
E. Total (net) (C) – (D)	$	771,959,033	6,076,939,953	8,313,770,058		3,722,962	3,722,962	3,722,962

A reconciliation of the life actuarial reserves as of December 31, 2024 is as follows:

	Amount
Life and accident and health annual statement:
(1) Exhibit 5, life insurance section, total (net)	$	8,132,302,956
(2) Exhibit 5, accidental death benefits section, total (net)		559,239
(3) Exhibit 5, disability – active lives section, total (net)		20,109,372
(4) Exhibit 5, disability – disabled lives section, total (net)		69,467,422
(5) Miscellaneous reserves section, total (net)		91,331,069
(6) Subtotal		8,313,770,058
Separate accounts annual statement:
(7) Exhibit 3, line 0199999, column 2		3,722,962
(8) Exhibit 3, line 0499999, column 2		—
(9) Exhibit 3, line 0599999, column 2		—
(10) Subtotal (Lines 7–9)		3,722,962
(11) Combined total (6 and 10)	$	8,317,493,020

 30 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

Withdrawal characteristics of annuity actuarial reserves, deposit type contract funds, and life actuarial reserves as of December 31, 2023, were as follows:

(a) Individual Annuities

			Separate
			account		Separate
	General		with		account
	account		guarantees		nonguaranteed		Total		% of total
1. Subject to discretionary withdrawal:
(a) With market value adjustment	$	—		—		—		—		—	%
(b) At book value less current surrender charge of 5% or more		35,358,397		—		—		35,358,397		1.242
(c) At fair value		—		—		5,027,772		5,027,772		0.177
(d) Total with market value adjustment or at fair value (Total of a through c)		35,358,397		—		5,027,772		40,386,169		1.419
(e) At book value without adjustment (minimal or no charge or adjustment)		2,414,987,374		—				2,414,987,374		84.838
2. Not subject to discretionary withdrawal		391,197,553		—		—		391,197,553		13.743
3. Total (gross: direct + assumed)		2,841,543,324		—		5,027,772		2,846,571,096		100.000
4. Reinsurance ceded		—		—		—		—
5. Total (net) (3) – (4)	$	2,841,543,324		—		5,027,772		2,846,571,096
6. Amount in A(1)b that will move to A(1)e next year	$	35,358,397		—		—		35,358,397

(b) Group Annuities

			Separate
			account		Separate
	General		with		account
	account		guarantees		nonguaranteed		Total		% of total
1. Subject to discretionary withdrawal:
(a) With market value adjustment	$	2,031,840		—		—		2,031,840		4.981	%
(b) At book value less current surrender charge of 5% or more		—		—		—		—		—
(c) At fair value		—		—		—		—		—
(d) Total with market value adjustment or at fair value (Total of a through c)		2,031,840		—		—		2,031,840		4.981
(e) At book value without adjustment (minimal or no charge or adjustment)		37,968,900		—		—		37,968,900		93.073
2. Not subject to discretionary withdrawal		793,894		—		—		793,894		1.946
3. Total (gross: direct + assumed)		40,794,634		—		—		40,794,634		100.000
4. Reinsurance ceded		—		—		—		—
5. Total (net) (3) – (4)	$	40,794,634		—		—		40,794,634
6. Amount in A(1)b that will move to A(1)e next year	$	—		—		—		—

 31 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(c) Deposit-Type Contracts

			Separate
			account		Separate
	General		with		account
	account		guarantees		nonguaranteed		Total		% of total
1. Subject to discretionary withdrawal:
(a) With market value adjustment	$	461,968,428		—		—		461,968,428		55.936	%
(b) At book value less current surrender charge of 5% or more		—		—		—		—		—
(c) At fair value		—		—		—		—		—
(d) Total with market value adjustment or at fair value (Total of a through c)		461,968,428		—		—		461,968,428		55.936
(e) At book value without adjustment (minimal or no charge or adjustment)		363,013,702		—		—		363,013,702		43.954
2. Not subject to discretionary withdrawal		906,964		—		—		906,964		0.110
3. Total (gross: direct + assumed)		825,889,094		—		—		825,889,094		100.000
4. Reinsurance ceded		—		—		—		—
5. Total (net) (3) – (4)	$	825,889,094		—		—		825,889,094
6. Amount in A(1)b that will move to A(1)e next year	$	—		—		—		—

A reconciliation of annuity actuarial reserves and deposit type contract funds as of December 31, 2023 is as follows:

	Amount
Life and accident and health annual statement:
1. Exhibit 5, annuities section, total (net)	$	2,613,875,586
2. Exhibit 5, supplementary contracts with life contingencies section, total (net)		268,462,372
3. Exhibit of deposit-type contracts, line 14, column 1		825,889,094
4. Subtotal		3,708,227,052
Separate account assets statement:
5. Exhibit 3, line 0299999, column 2		5,027,772
6. Exhibit 3, line 0399999, column 2		—
7. Policyholder dividend and coupon accumulations		—
8. Policyholder premiums		—
9. Guaranteed interest contracts		—
10. Other contract deposit funds		—
11. Subtotal		5,027,772
12. Combined total	$	3,713,254,824

 32 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(d) Life  Contracts

	General account				Separate account nonguaranteed
	Account				Account
		value	Cash value	Reserve		value	Cash value	Reserve
A. Subject to discretionary withdrawal:
(1) Term policies with cash value	$	—	—	—		—	—	—
(2) Universal life		805,250,510	804,984,903	809,247,560		—	—	—
(3) Universal life with secondary guarantees		—	—	—		—	—	—
(4) Indexed universal life		—	—	—		—	—	—
(5) Indexed universal life with secondary guarantees		—	—	—		—	—	—
(6) Indexed life		—	—	—		—	—	—
(7) Other permanent cash value life insurance		—	5,043,503,225	5,707,329,279		—	—	—
(8) Variable life		—	—	—		—	—	—
(9) Variable universal life		1,766,731	1,766,731	1,785,927		3,292,826	3,292,826	3,292,826
(10) Miscellaneous reserves		—	—	—		—	—	—
B. Not Subject to discretionary withdrawal:
(1) Term policies without cash value		XXX	XXX	1,474,997,069		XXX	XXX	—
(2) Accidental death benefits		XXX	XXX	610,190		XXX	XXX	—
(3) Disability – Active lives		XXX	XXX	19,181,601		XXX	XXX	—
(4) Disability – Disabled lives		XXX	XXX	71,035,214		XXX	XXX	—
(5) Miscellaneous reserves		XXX	XXX	113,288,386		XXX	XXX	—
C. Total (gross: direct + assumed)		807,017,241	5,850,254,859	8,197,475,226		3,292,826	3,292,826	3,292,826
D. Reinsurance ceded		—	—	120,259,396		—	—	—
E. Total (net) (C) – (D)	$	807,017,241	5,850,254,859	8,077,215,830		3,292,826	3,292,826	3,292,826

A reconciliation of the life actuarial reserves as of December 31, 2023 is as follows:

	Amount
Life and accident and health annual statement:
(1) Exhibit 5, life insurance section, total (net)	$	7,874,474,895
(2) Exhibit 5, accidental death benefits section, total (net)		610,190
(3) Exhibit 5, disability – active lives section, total (net)		19,181,602
(4) Exhibit 5, disability – disabled lives section, total (net)		69,692,885
(5) Miscellaneous reserves section, total (net)		113,256,258
(6) Subtotal		8,077,215,830
Separate accounts annual statement:
(7) Exhibit 3, line 0199999, column 2		3,292,826
(8) Exhibit 3, line 0499999, column 2		—
(9) Exhibit 3, line 0599999, column 2		—
(10) Subtotal (Lines 7–9)		3,292,826
(11) Combined total (6 and 10)	$	8,080,508,656

 33 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(4) Policy and Contract Claims and Liabilities

Activity in the liability for unpaid accident and health claims and claims adjustment expenses is summarized in the following table. The liability for unpaid accident and health claims and claims adjustment expenses includes policy and contract claims in process and the corresponding claims reserve. These amounts are included as a component of the aggregate reserve for accident and health contracts and liability for policy and contract claims presented in the accompanying statutory statements of admitted assets, liabilities and stockholders’ equity.

	2024			2023
Balance, January 1	$	125,124,048			118,255,664
Less reinsurance recoverables		88,270,678			84,359,680
Net balance, January 1		36,853,370			33,895,984
Incurred related to:
Current year		8,137,576			9,875,804
Prior year		(1,589,088	)		2,580,290
Total incurred		6,548,488			12,456,094
Paid related to:
Current year		1,662,756			1,728,332
Prior year		7,810,546			7,770,376
Total paid		9,473,302			9,498,708
Net balance, December 31		33,928,556			36,853,370
Plus reinsurance recoverables		83,048,189			88,270,678
Balance, December 31	$	116,976,745			125,124,048

(5) Transactions with Affiliates

Through common ownership and directorship, the Company has certain transactions with associated companies. Substantially all of these transactions represent agency-related costs of operations. Agreements with the State and County Farm Bureau organizations in the various states provide for reimbursement to these organizations of the cost of office space and clerical assistance and payments for use of the Farm Bureau name and logo. During the years ended December 31, 2024 and 2023, such fees aggregated $31,860,473 and $31,204,338, respectively, and are included in general insurance expenses in the statutory statements of earnings.

At December 31, 2024 and 2023, net amounts due to State and County Farm Bureaus were $599,030 and $990,100, respectively.

(6) Advances on Funding Agreements

The Company is a member of the FHLB of Dallas. Through its membership, the Company has participated in prior year funding agreements with the FHLB, the most recent being in 2017. The Company did not have any funding agreements with the FHLB as of December 31, 2024 and 2023. There was no maximum amount of aggregate borrowing on FHLB funding agreements during the reporting periods ended December 31, 2024 and 2023.

 34 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(7) Notes Payable

The Company’s liability for borrowed money related to borrowings from the FHLB amounted to $140,500,000 as of December 31, 2024 and 2023. The debt is fixed-rate/fixed-term with the principal due at maturity and is secured with FHLB eligible collateral (U.S. Treasury Notes and/or Agency Pass-Through). Interest is paid monthly at the contracted rate with total interest expense during 2024 and 2023 of $2,809,773 and $4,003,915, respectively, with $234,207 and $234,204 accrued at December 31, 2024 and 2023, respectively. There are no scheduled payments with the balloon payments due at maturity and no sinking fund requirements. Further details are presented below:

	Face		Rate of				Carrying value December 31
Date of issue	amount		interest			Maturity date	2024		2023
3/16/2020	$	38,000,000		1.82	%	3/16/2026	$	38,000,000		38,000,000
5/29/2020		40,000,000		1.90		6/1/2027		40,000,000		40,000,000
4/15/2021		22,500,000		1.85		4/14/2031		22,500,000		22,500,000
2/25/2022		40,000,000		2.35		2/26/2029		40,000,000		40,000,000
								140,500,000		140,500,000
						Accrued Interest		234,207		234,204
							$	140,734,207		140,734,204

The Company has determined the estimated maximum borrowing capacity as $534,294,412 at December 31, 2024 compared to $488,652,907 at December 31, 2023. The Company has calculated this amount as 15% of unassigned surplus. The Company does not have any repurchase agreements as of December 31, 2024.

The aggregate maturities of debt for each of the five years subsequent to December 31, 2024 are as follows:

2025	$	—
2026		38,000,000
2027		40,000,000
2028		—
2029		40,000,000

 35 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(8) Retirement Plans

The Company has a noncontributory defined benefit pension plan, a contributory defined contribution plan and postretirement benefit plans. All plans cover substantially all employees, subject to certain eligibility requirements such as age and length of service. The Company applies SSAP No. 102, Pensions, and SSAP No. 92, Postretirement Benefits Other Than Pensions.

(a) Pension Plan

The Company presently maintains a noncontributory defined benefit pension plan covering all employees who have met the eligibility requirements. Benefits are based on a participant’s years of service and average monthly salary. The Company has agreed to make contributions to provide assets with which to pay retirement benefits. The assumed interest rates for funding are based on the segment rates published by the Internal Revenue Service with adjustments as allowed under applicable federal regulation. The projected unit credit cost method is the actuarial method used in funding the plan.

The projected benefit obligation, as determined by consulting actuaries (computed using the assumptions on the following page), and the net assets available for benefits as of December 31, 2024 and 2023 follow:

	2024			2023
Change in plan assets:
Fair value of plan assets at January 1	$	246,980,340			240,191,299
Actual return on plan assets		(6,909,830	)		21,155,610
Benefits paid and transfers		(13,497,795	)		(14,366,569	)
Fair value of plan assets at December 31	$	226,572,715			246,980,340
Change in projected benefit obligation:
Benefit obligation at January 1	$	203,319,371			200,013,709
Service cost		7,137,169			6,880,953
Interest cost		9,577,733			9,741,428
Actuarial loss (gain)		(15,805,387	)		1,049,850
Benefits paid and transfers		(13,497,795	)		(14,366,569	)
Prior service cost		1,957,877			—
Benefit obligation at December 31	$	192,688,968			203,319,371
Funded status:
Unrecognized actuarial loss	$	(30,810,674	)		(25,772,682	)
Unrecognized prior service cost		(1,957,877	)		—
Prepaid benefit cost		66,652,298			69,433,651
Over funded status	$	33,883,747			43,660,969

The accumulated benefit obligation for the pension plan was $159,626,260 and $166,168,036 at December 31, 2024 and 2023, respectively.

 36 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY 

Notes to Statutory Financial Statements 

December 31, 2024 and 2023

The components of pension costs and significant actuarial assumptions for the years ended December 31, 2024 and 2023 were as follows:

	2024			2023
Components of pension cost
Service cost	$	7,137,169			6,880,953
Interest cost		9,577,733			9,741,428
Expected return on plan assets		(14,021,925	)		(15,294,065	)
Recognized actuarial loss		88,376			592,531
Net periodic benefit cost	$	2,781,353			1,920,847

Weighted average assumptions used to determine the benefit obligation at December 31, 2024, and 2023 are as follows:

	2024			2023
Discount rate		5.59	%		4.89	%
Expected return of plan assets		6.38			5.86
Rate of compensation increase		5.00			5.00
Mortality Table		Pri-2012 using scale MP2021			Pri-2012 using scale MP2021

Significant actuarial assumptions for determining net benefit cost for the years ended December 31, 2024, and 2023 are as follows:

	2024			2023
Discount rate		4.89	%		5.06	%
Expected return of plan assets		5.86			6.50
Rate of compensation increase		5.00			5.00

Postretirement lump sum/annuity purchase assumptions for 2024 and 2023 are based on the IRS Mortality and Interest Table, Section 417(e)(3).

37 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY 

Notes to Statutory Financial Statements 

December 31, 2024 and 2023

(i) Plan Assets

The Company’s pension plan weighted average asset allocation at December 31 was as follows:

	2024			2023
Asset category:
Cash and cash equivalents		1	%		5	%
Debt securities		62			61
Common stock mutual funds		20			18
Real estate		10			10
Other		7			6
Total		100	%		100	%

Plan assets for the defined benefit plan are a diversified mix of traditional asset classes. Equity investments, both active and passively managed, are used primarily to increase overall plan returns. Fixed income investments provide diversification benefits and liability hedging attributes. Investments in U.S. and foreign equity securities, fixed income securities, and cash are made to optimize long-term returns while recognizing the need for a prudent liability hedging position and adequate liquidity. Risk tolerance of unexpected investment and actuarial outcomes is frequently evaluated by understanding the pension plan’s liability characteristics, forecasting and assessing ranges of investment outcomes over short and long-term horizons, and by assessing the Company’s financial condition and its future potential obligations from both the pension and general corporate requirements. A comprehensive asset/liability study was conducted in 2023 by Towers Watson. The Company subsequently adjusted its asset allocation toward fixed income assets in order to capitalize on the plan’s funded position and improve the interest-rate hedging characteristics of the portfolio. A subsequent study in 2024 by New England Pension Consulting further refined the hedged position.

Asset allocations and investment performance are formally reviewed quarterly by the Pension Committee. The Pension Committee of the Company has delegated authority to the Pension Investment Committee to provide oversight and supervision with respect to the investment and management of the assets in the Plan.

The Company selects the expected long-term rate of return on assets assumption in consultation with the enrolled actuary. This rate is intended to reflect the average rate of earnings expected to be earned on the funds invested or to be invested to provide plan benefits. It is estimated based on many factors including the expected forecast for inflation, risk premiums for each asset class, expected asset allocation, current and future financial market conditions, and diversification and rebalancing strategies. Historical return patterns and correlations, consensus return forecasts and other relevant financial factors are analyzed to check for reasonableness and appropriateness. Each year the Pension Committee meets with the enrolled actuary to review all actuarial assumptions.

38 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY 

Notes to Statutory Financial Statements 

December 31, 2024 and 2023

The fair value of the Company’s pension plan assets at December 31, 2024 and 2023, by asset category classified using the fair value measurement hierarchy, as well as assets measured at NAV as a practical expedient, are shown in the table below. See note 14, Fair Value Measurements, for fair value hierarchy level definitions.

	2024
							NAV as a
							practical
	Level 1		Level 2		Level 3		expedient*		Total
Cash and cash equivalents	$	—		2,880,536		—		—		2,880,536
Equity funds		—		45,256,217		—		—		45,256,217
Fixed income:
U.S. government bonds and agencies		—		141,221,459		—		—		141,221,459
Real estate:
Real estate funds		—		—		—		21,442,099		21,442,099
Limited partnerships		—		—		—		472,322		472,322
Alternative credit funds		—		—		—		15,300,082		15,300,082
Total pension plan assets	$	—		189,358,212		—		37,214,503		226,572,715

		2023
					NAV as a
					practical
		Level 1	Level 2	Level 3	expedient*	Total
Cash and cash equivalents	$	—	11,947,581	—	—	11,947,581
Equity funds		—	45,108,243	—	—	45,108,243
Fixed income:
U.S. government bonds and agencies		—	149,138,326	—	—	149,138,326
Real estate:
Real estate funds		—	—	—	25,062,152	25,062,152
Limited partnerships		—	—	—	451,582	451,582
Alternative credit funds		—	—	—	15,272,456	15,272,456
Total pension plan assets	$	—	206,194,150	—	40,786,190	246,980,340

* Real estate funds, limited partnerships, and alternative credit funds are reported at the NAV as determined by the investment manager, which is used as a practical expedient to estimate the fair value. Subject to certain restrictions, real estate fund redemptions may be made quarterly via redemption request, giving a 30-day notice, and alternative credit fund redemptions may be made monthly via redemption request, giving a 30-day notice. Limited partnerships have no requested redemption feature.

39 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY 

Notes to Statutory Financial Statements 

December 31, 2024 and 2023

(ii) Contributions

The acceptable range of contributions to the plan is determined each year by the enrolled actuary. In 2025, the Company does not expect to contribute to the plan. However, the actual amount of the contribution will be determined based on the plan’s funded status, personnel experience, pay increases, assumption changes, and return on plan assets as of the measurement date, which is the July 1 valuation date.

(iii)  Projected Benefit Payments

The following fiscal year pension plan benefit payments, which reflect expected future service, are expected to be paid:

	Projected
	benefit payments
Year:
2025	$	15,578,373
2026		14,775,802
2027		15,163,266
2028		15,372,263
2029		15,850,922
2030–2034		74,606,397

(b) Defined Contribution Plan

The Company has adopted a 401(k) Plan for the benefit of its eligible employees. Participants may defer up to 50% of their annual salary on a tax deferred basis. However, total deferral in any taxable year may not exceed a dollar limit which is set by law. The Company currently matches the deferred contributions up to 4%. Assets are maintained in a separate trust and are not part of Company assets. The cost of the plan to the Company was $2,008,009 and $1,874,237 in 2024 and 2023, respectively. The fair value of plan assets was $118,722,614 and $109,234,377 in 2024 and 2023, respectively.

(c) Postretirement Benefit Plans

The Company currently offers life and health insurance benefits to retired employees. Employees are eligible for life insurance coverage if they retire on or after age 65 or retire early with 15 years of service. Life insurance benefits are generally set at a fixed amount. Employees are eligible for postretirement health coverage based on age and service requirements. Prior to Medicare eligibility, the Company will pay a portion of the monthly health insurance premium for the retiree and eligible spouse. For retired employees that are eligible for Medicare, the Company will reimburse premiums in individual Health Retirement Accounts up to a maximum monthly amount. The Company paid $737,759 and $712,151 in premiums on behalf of retired employees in 2024 and 2023, respectively.

40 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY 

Notes to Statutory Financial Statements 

December 31, 2024 and 2023

The projected benefit obligation for the Company’s employee medical payments and life insurance postretirement benefit plans, none of which have been funded, is shown in the table below. Also provided is the funded status and components of the benefit expense, as determined by consulting actuaries.

	2024			2023
Change in projected benefit obligation:
Benefit obligation at January 1	$	31,931,503			30,601,887
Service cost		812,071			756,029
Interest cost		1,540,454			1,527,960
Actuarial loss (gain)		(4,345,746	)		(242,221	)
Benefits paid		(737,759	)		(712,152	)
Benefit obligation at December 31	$	29,200,523			31,931,503
Funded status:
Unrecognized prior service credit	$	5,757,362			7,186,631
Unrecognized actuarial loss		4,828,139			570,538
Accrued liability		(39,786,024	)		(39,688,672	)
Under funded status	$	(29,200,523	)		(31,931,503	)

		2024		2023
Components of postretirement benefit expense
Service cost	$	812,071		756,029
Interest cost		1,540,454		1,527,960
Amortization of prior service credit		(1,429,269	)	(1,339,902	)
Amortization of net actuarial loss		(88,145	)	(99,405	)
Postretirement benefit expense	$	835,111		844,682

The postretirement benefit expense is included in the accompanying statutory statements of earnings as general insurance expenses.

The discount rate used in determining the accumulated postretirement benefit obligation was 5.67% and 4.93% in 2024 and 2023, respectively. The healthcare cost trend rate for 2024 expense was 7.60% graded to 4.50% for 2032 and beyond for employees under age 65. The assumed healthcare cost trend rate used in measuring the accumulated postretirement benefit obligation was 8.30% for 2025 graded to 4.5% for 2034 and beyond for employees under age 65.

Additionally, the Company has other unfunded, defined, postretirement benefit and deferred compensation plans (other postretirement benefit plans) for employees and nonemployee directors of the Company. The recorded liability of these plans was $35,334,248 and $36,887,015 at December 31, 2024 and 2023, respectively. The recorded net periodic benefit costs of these plans was $3,453,872 and $2,852,689 during the years ended December 31, 2024 and 2023, respectively.

41 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY 

Notes to Statutory Financial Statements 

December 31, 2024 and 2023

The expected future contributions and benefit payments for postretirement benefits follow:

	Employee		Employee		Other
	medical		life		postretirement
	payments		insurance		benefits
Year:
2025	$	1,136,003		221,667		4,898,989
2026		1,189,658		241,206		4,399,964
2027		1,264,605		261,590		4,184,658
2028		1,362,398		281,915		3,138,874
2029		1,422,867		303,159		3,328,160
2030–2034		7,841,564		1,850,542		14,469,837

Beginning January 1, 2009, prescription drug coverage was eliminated from the postretirement medical benefit plan for Medicare eligible retirees. Medicare eligible retirees are encouraged to sign up for Medicare Part D. The postretirement premium for Medicare eligible retirees was reduced appropriately. The gross benefit payments for all retirees (including prescription drug benefits) paid in fiscal 2024 and fiscal 2023 was $1,301,759 and $970,115, respectively. No amounts of subsidies were received in fiscal 2024 nor are any amounts expected to be received in fiscal 2025.

42 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY 

Notes to Statutory Financial Statements 

December 31, 2024 and 2023

(9) Federal Income Taxes

The net deferred tax asset at December 31, 2024 and 2023, and the change is comprised of the following components:

	2024
	Ordinary		Capital			Total
Calculation of the net deferred tax asset:
(a) Gross deferred tax assets	$	323,034,869		13,669,793			336,704,662
(b) Statutory valuation allowance adjustments		—		—			—
(c) Adjusted gross deferred tax assets		323,034,869		13,669,793			336,704,662
(d) Deferred tax assets nonadmitted		70,689,021		—			70,689,021
(e) Subtotal net admitted deferred tax asset		252,345,848		13,669,793			266,015,641
(f) Deferred tax liabilities		93,156,742		113,770,666			206,927,408
(g) Net admitted deferred tax asset (net deferred tax liability)	$	159,189,106		(100,100,873	)		59,088,233

		2023
		Ordinary	Capital		Total
Calculation of the net deferred tax asset:
(a) Gross deferred tax assets	$	313,802,460	16,668,132		330,470,592
(b) Statutory valuation allowance adjustments		—	—		—
(c) Adjusted gross deferred tax assets		313,802,460	16,668,132		330,470,592
(d) Deferred tax assets nonadmitted		80,521,827	—		80,521,827
(e) Subtotal net admitted deferred tax asset		233,280,633	16,668,132		249,948,765
(f) Deferred tax liabilities		92,800,870	100,626,316		193,427,186
(g) Net admitted deferred tax asset (net deferred tax liability)	$	140,479,763	(83,958,184	)	56,521,579

		Change
		Ordinary		Capital		Total
Calculation of the net deferred tax asset:
(a) Gross deferred tax assets	$	9,232,409		(2,998,339	)	6,234,070
(b) Statutory valuation allowance adjustments		—		—		—
(c) Adjusted gross deferred tax assets		9,232,409		(2,998,339	)	6,234,070
(d) Deferred tax assets nonadmitted		(9,832,806	)	—		(9,832,806	)
(e) Subtotal net admitted deferred tax asset		19,065,215		(2,998,339	)	16,066,876
(f) Deferred tax liabilities		355,872		13,144,350		13,500,222
(g) Net admitted deferred tax asset (net deferred tax liability)	$	18,709,343		(16,142,689	)	2,566,654

43 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY 

Notes to Statutory Financial Statements 

December 31, 2024 and 2023

Management has reviewed whether a valuation allowance is needed on its gross deferred tax assets reported above. Management believes that for years 2024–2026, it is more likely than not that the results of operations will generate sufficient ordinary taxable income to realize its deferred tax assets on noncapital items. Sufficient ordinary taxable income is also projected beyond 2027 to substantiate the ordinary deferred tax assets likely to be realized in those periods. For capital items, the Company has adequate taxable capital gains available in its invested assets portfolio to allow for the realization of capital deferred tax assets. The Company has also historically generated significant capital gains that could be used for future capital loss carrybacks arising from the realization of deferred tax assets.

The amount of adjusted gross deferred tax assets admitted under each component of SSAP 101 for 2024 and 2023, and the change is comprised of the following components:

	2024
	Ordinary		Capital		Total
The amount of adjusted gross deferred tax assets admitted under each component of SSAP 101, paragraph 11:
(a) Federal income taxes paid in prior years recoverable through loss carrybacks	$	—		734,012		734,012
(b) Adjusted gross DTAs expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of the threshold limitation (lesser of 11bi or 11bii):		58,354,221		—		58,354,221
i. Adjusted gross DTAs expected to be realized following the balance sheet date		58,354,221		—		58,354,221
ii. Adjusted gross DTAs allowed per limitation threshold		N/A		N/A		525,343,402
(c) Adjusted gross DTAs (excluding the amount of deferred assets from 2(a) and 2(b) above) offset by gross DTLs		193,991,627		12,935,781		206,927,408
(d) DTA admitted as the result of application of SSAP No. 101, para 11 (a)+(b)-(c)	$	252,345,848		13,669,793		266,015,641

		2023
		Ordinary	Capital	Total
The amount of adjusted gross deferred tax assets admitted under each component of SSAP 101, paragraph 11:
(a) Federal income taxes paid in prior years recoverable through loss carrybacks	$	—	198,861	198,861
(b) Adjusted gross DTAs expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of the threshold limitation (lesser of 11bi or 11bii):		56,322,718	—	56,322,718
i. Adjusted gross DTAs expected to be realized following the balance sheet date		56,322,718	—	56,322,718
ii. Adjusted gross DTAs allowed per limitation threshold		N/A	N/A	479,914,587
(c) Adjusted gross DTAs (excluding the amount of deferred assets from 2(a) and 2(b) above) offset by gross DTLs		176,957,915	16,469,271	193,427,186
(d) DTA admitted as the result of application of SSAP No. 101, para 11 (a)+(b)-(c)	$	233,280,633	16,668,132	249,948,765

44 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements 

December 31, 2024 and 2023

	Change
		Ordinary	Capital		Total
The amount of adjusted gross deferred tax assets admitted under each component of SSAP 101, paragraph 11:
(a) Federal income taxes paid in prior years recoverable through loss carrybacks	$	—	535,151		535,151
(b) Adjusted gross DTAs expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of the threshold limitation (lesser of 11bi or 11bii):		2,031,503	—		2,031,503
i. Adjusted gross DTAs expected to be realized following the balance sheet date		2,031,503	—		2,031,503
ii. Adjusted gross DTAs allowed per limitation threshold		N/A	N/A		45,428,815
(c) Adjusted gross DTAs (excluding the amount of deferred assets from 2(a) and 2(b) above) offset by gross DTLs		17,033,712	(3,533,490	)	13,500,222
(d) DTA admitted as the result of application of SSAP No. 101, para 11 (a)+(b)-(c)	$	19,065,215	(2,998,339	)	16,066,876

Ratios used for threshold limitation in SSAP 101, paragraph 11.b.ii:

	2024			2023
(a) Ratio percentage used to determine recovery period and threshold limitation amount		1,461	%		1,398	%
(b) Adjusted capital and surplus used to determine the threshold limitation amount	$	3,502,289,348			3,199,430,580

The change in deferred income taxes reported in surplus before consideration of nonadmitted assets is comprised of the following components:

	2024		2023		Change
Total deferred tax assets	$	336,704,662		330,470,592		6,234,070
Total deferred tax liabilities		206,927,408		193,427,186		13,500,222
Net deferred tax asset/liability		129,777,254		137,043,406		(7,266,152	)
Tax effect of unrealized gains/(losses)		111,901,430		97,929,173		13,972,257
Change in net deferred income tax (without tax on unrealized gains and losses)	$	241,678,684		234,972,579		6,706,105

45 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY 

Notes to Statutory Financial Statements 

December 31, 2024 and 2023

The main components of deferred taxes as of December 31, 2024 and 2023 and changes are as follows:

	2024
	Ordinary			Capital			Total
Deferred tax assets:
Life reserves	$	190,340,928			—			190,340,928
Deferred acquisition costs		96,469,843			—			96,469,843
Partnerships		—			9,059,603			9,059,603
Policyholder dividends		7,260,256			—			7,260,256
Other employee benefits		14,465,695			—			14,465,695
Asset impairments		—			4,344,723			4,344,723
Nonadmitted assets		12,494,532			—			12,494,532
Other		2,003,615			265,467			2,269,082
Total deferred tax assets		323,034,869			13,669,793			336,704,662
Nonadmitted deferred tax assets		(70,689,021	)		—			(70,689,021	)
Admitted deferred tax assets		252,345,848			13,669,793			266,015,641
Deferred tax liabilities:
Premiums deferred and uncollected		(79,846,733	)		—			(79,846,733	)
Life reserves		(3,587,381	)		—			(3,587,381	)
Accrual of discount on bonds		(7,710,889	)		—			(7,710,889	)
Asset conversions		—			(1,712,144	)		(1,712,144	)
Depreciation differences		(1,857,961	)		—			(1,857,961	)
Unrealized investment gains		—			(111,901,429	)		(111,901,429	)
Other		(153,778	)		(157,093	)		(310,871	)
Total deferred tax liabilities		(93,156,742	)		(113,770,666	)		(206,927,408	)
Net admitted deferred tax assets	$	159,189,106			(100,100,873	)		59,088,233

46 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY 

Notes to Statutory Financial Statements 

December 31, 2024 and 2023

		2023
		Ordinary		Capital		Total
Deferred tax assets:
Life reserves	$	189,963,652		—		189,963,652
Deferred acquisition costs		88,877,526		—		88,877,526
Partnerships		—		12,716,833		12,716,833
Policyholder dividends		6,667,488		—		6,667,488
Other employee benefits		12,413,588		—		12,413,588
Asset impairments		—		3,685,832		3,685,832
Nonadmitted assets		14,090,654		—		14,090,654
Other		1,789,552		265,467		2,055,019
Total deferred tax assets		313,802,460		16,668,132		330,470,592
Nonadmitted deferred tax assets		(80,521,827	)	—		(80,521,827	)
Admitted deferred tax assets		233,280,633		16,668,132		249,948,765
Deferred tax liabilities:
Premiums deferred and uncollected		(76,805,915	)	—		(76,805,915	)
Life reserves		(7,174,761	)	—		(7,174,761	)
Accrual of discount on bonds		(6,791,982	)	—		(6,791,982	)
Asset conversions		—		(1,626,530	)	(1,626,530	)
Depreciation differences		(1,847,820	)	—		(1,847,820	)
Unrealized investment gains		—		(97,929,173	)	(97,929,173	)
Other		(180,392	)	(1,070,613	)	(1,251,005	)
Total deferred tax liabilities		(92,800,870	)	(100,626,316	)	(193,427,186	)
Net admitted deferred tax assets	$	140,479,763		(83,958,184	)	56,521,579

47 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY 

Notes to Statutory Financial Statements 

December 31, 2024 and 2023

		Change
		Ordinary		Capital		Total
Deferred tax assets:
Life reserves	$	377,276		—		377,276
Deferred acquisition costs		7,592,317		—		7,592,317
Partnerships		—		(3,657,230	)	(3,657,230	)
Policyholder dividends		592,768		—		592,768
Other employee benefits		2,052,107		—		2,052,107
Asset impairments		—		658,891		658,891
Nonadmitted assets		(1,596,122	)	—		(1,596,122	)
Other		214,063		—		214,063
Total deferred tax assets		9,232,409		(2,998,339	)	6,234,070
Nonadmitted deferred tax assets		9,832,806		—		9,832,806
Admitted deferred tax assets		19,065,215		(2,998,339	)	16,066,876
Deferred tax liabilities:
Premiums deferred and uncollected		(3,040,818	)	—		(3,040,818	)
Life reserves		3,587,380		—		3,587,380
Accrual of discount on bonds		(918,907	)	—		(918,907	)
Asset conversions		—		(85,614	)	(85,614	)
Depreciation differences		(10,141	)	—		(10,141	)
Unrealized investment gains		—		(13,972,256	)	(13,972,256	)
Other		26,614		913,520		940,134
Total deferred tax liabilities		(355,872	)	(13,144,350	)	(13,500,222	)
Net admitted deferred tax assets	$	18,709,343		(16,142,689	)	2,566,654

As of December 31, 2024 and 2023, there were no tax credit carryforwards or operating losses available for tax purposes.

48 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

The differences between income tax expense on the statutory statements of earnings and the amounts completed by applying the federal income tax rate to earnings before federal income taxes are listed below.

	2024						2023
	Amount			Percentage			Amount			Percentage
Current income taxes incurred:
Operations	$	75,640,000			20.8	%	$	45,325,000			22.0	%
Realized investment gains (losses)		6,585,164			1.8			1,695,827			0.8
Current income taxes incurred		82,225,164			22.6			47,020,827			22.8
Change in deferred income tax
(without tax on unrealized gains and losses):		(6,706,105	)		(1.8	)		(14,788,665	)		(7.2	)
Total income tax reported	$	75,519,059			20.8	%	$	32,232,162			15.6	%
Income taxes computed at statutory rate:
Operations	$	71,812,852					$	44,118,340
Realized investment gains (losses)		4,723,096						(859,976	)
Income tax including capital gains/losses		76,535,948			21.0	%		43,258,364			21.0	%
Adjustments to income tax:
Tax-exempt interest		(1,773,440	)		(0.5	)		(1,586,460	)		(0.8	)
Dividends received deduction		(839,353	)		(0.2	)		(655,434	)		(0.3	)
Amortization of IMR		438,750			0.1			(182,336	)		(0.1	)
Nondeductible expenses		2,776,205			0.8			3,315,399			1.6
Foreign tax withheld		126,000			—			94,500			—
Other adjustments on investments		331			—			(331	)		—
Adjustment of prior year’s income taxes:
Under/(over) accrual of PY taxes		(143,127	)		—			(1,539,327	)		(0.7	)
Investment in bonds		151			—			(107,389	)		(0.1	)
Investment in partnerships		58,362			—			51,540			—
Other adjustments		1,693			—			—			—
Adjustment for pension/other benefits		(508,622	)		(0.1	)		(73,140	)		—
Nonadmitted assets		842,282			0.2			(5,856,131	)		(2.8	)
Tax credits		(1,996,121	)		(0.5	)		(4,487,093	)		(2.2	)
Total income tax reported	$	75,519,059			20.8	%	$	32,232,162			15.6	%

In August 2007, the Internal Revenue Service (IRS) issued Revenue Ruling 2007-54, which would have changed accepted industry and IRS interpretations of the statutes governing the computation of the Dividends Received Deduction (DRD) on separate account assets held in connection with variable annuity and life contracts. However, the ruling was suspended by Revenue Ruling 2007-61, which also announced the IRS’ intention to issue regulations with respect to certain computational aspects of the DRD. Although regulations that represent a substantial change in an interpretation of the law are generally given a prospective effective date, this is not guaranteed. As a result, depending on the ultimate timing and substance of any such regulations, which are unknown at this time, such future regulations could result in the elimination of some or all of the separate account DRD tax benefit that the Company receives. During 2024 and 2023, the Company estimated an income tax benefit of $7,151 and $6,123, respectively, related to the separate account DRD.

49 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

The Company files income tax returns in the U.S. federal jurisdiction and the states of Florida, Louisiana, Mississippi and Montana. With few exceptions, the Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for 2020 and earlier tax years. If the Company incurs interest and penalties on income taxes, they are recognized as a component within income taxes.

As of December 31, 2024 and 2023, the Company had no unrecognized deferred tax liabilities. The Company does not expect that the liability related to any federal or foreign tax loss contingencies will significantly increase within the next 12 months.

50 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(10)  Commitments

(a) Litigation

The Company and other parties are involved in various other litigation in the normal course of business. It is management’s opinion, after consultation with counsel and a review of the facts, that the ultimate liability, if any, arising from such contingencies will not have a material adverse effect on the Company’s financial position or on the results of its operations or cash flows.

(b) Guaranty Association Assessments

The Company is required by law to participate in the guaranty associations of the various states in which it is licensed to do business. The state guaranty associations ensure payment of guaranteed benefits, with certain restrictions, to policyholders of impaired or insolvent insurance companies by assessing all other companies operating in similar lines of business.

There are currently several insurance companies, which had substantial amounts of life and annuity business, in the process of liquidation or rehabilitation. The Company’s net payment was $2,113,298 and $118,136 to various state guaranty associations during 2024 and 2023, respectively. The Company has recorded a liability related to guaranty fund assessments of $2,186,970 and $3,038,333 at December 31, 2024 and 2023, respectively. These liabilities are included as taxes, other than federal income taxes in the statutory statements of admitted assets, liabilities and stockholders’ equity. The Company may use the assessments to offset future premium taxes.

(c) Leases

The Company is obligated under the terms of various leases for certain equipment. Total lease rental expense, including short-term rentals, amounted to approximately $1,435,000 in 2024 and $1,230,000 in 2023. In most cases, management expects that in the normal course of business leases will be renewed or replaced by other leases. Future minimum rental payments required under leases that have initial or remaining noncancelable lease terms in excess of one year as of December 31, 2024 are not significant.

(d) Loan and Equity Commitments

The Company has commitments to extend credit and to make equity investments in the normal course of business. Commitments to extend credit are agreements to lend money with fixed expiration dates or other termination clauses. Equity commitments usually take the form of investments in limited partnerships. The Company applies its normal lending standards when extending credit commitments. Since several of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Collateral is not obtained for commitments to extend credit but is obtained when loans are closed based on an assessment of the customers’ creditworthiness. The Company’s maximum exposure to credit loss is represented by the contractual amount of the commitments. Commitments to extend credit and to make equity investments aggregated to approximately $494,750,000 at December 31, 2024.

51 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(11) Reinsurance

The Company follows the usual industry practices of reinsuring (ceding) portions of its risk with other companies. Use of reinsurance does not discharge an insurer from liability on the insurance ceded. The insurer is required to pay in full the amount of its insurance obligations regardless of whether it is entitled or able to receive payment from its reinsurer. The Company monitors both the financial condition of the reinsurers as well as risk concentrations arising from activities and economic characteristics of the reinsurers to lessen the risk of default by such reinsurers. All principal reinsurers maintain an A.M. Best rating of “A” or better.

None of the Company's reinsurers are owned in excess of 10% or controlled, either directly or indirectly, by the Company or by any representative, officer, trustee, or director of the Company. Additionally, none of the policies issued by the Company have been reinsured with a company chartered in a country other than the United States which is owned in excess of 10% or controlled directly or indirectly by an insured, beneficiary, a creditor of an insured, or any other person not primarily engaged in the insurance business.

A summary of reinsurance activity, all with unrelated parties, follows:

	2024		2023
At December 31:
Ceded life insurance in force	$	52,218,089,764		48,858,729,871
Reserve credits for life insurance		127,740,277		120,259,397
Ceded health insurance in force:
Disability insurance (monthly benefit)		2,072,211		2,297,477
Long-term care insurance (daily benefit)		1,185,480		1,238,416
Reserve credits for health insurance		421,198,167		420,961,622
For the year ended December 31:
Premiums ceded	$	67,192,131		64,248,517
Commissions and reinsurance expenses allowances		3,111,666		3,693,547
Claims ceded		78,482,258		67,827,532

A contingent liability exists with respect to life insurance covered under reinsurance agreements in the event the reinsurance company is unable to meet its obligations due under the contracts. In the opinion of management, this liability is not significant.

(12) Statutory Capital and Surplus and Dividend Restriction

The NAIC utilizes Risk-Based Capital (RBC) to evaluate the adequacy of statutory capital and surplus in relation to risks associated with: (i) asset quality, (ii) insurance risk, (iii) interest rate risk, and (iv) other business factors. The RBC formula is designed as an early warning tool for the states to identify potential under-capitalized companies for the purpose of initiating regulatory action. In the course of operations, the Company periodically monitors the level of its RBC, and it exceeds the minimum required levels as of December 31, 2024 and 2023.

52 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

State insurance departments, which regulate insurance companies, recognize only statutory accounting practices for determining and reporting the financial condition and results of operations of an insurance company, for determining its solvency under law, and for determining whether its financial condition warrants payment of a dividend to its shareholders. The Company is restricted by the Mississippi State Insurance Code as to the amount of dividends that may be paid within a twelve consecutive month period without regulatory consent. That restriction is the greater of statutory net gain from operations for the previous year or 10% of the policyholder surplus (net of capital stock) at December 31 of the previous year, subject to a maximum limit equal to statutory earned surplus.

In addition to the statutory restrictions on dividend distributions, the Company is further restricted by its Articles of Association. Article VII states that No cash dividend shall be paid on the Common Stock in any calendar year unless the capital, surplus and contingency reserves of the corporation shall equal or exceed seven percent (7%) of all other liabilities, with some adjustments for investment transaction reserves, separate account business, and the liability for policy dividends not yet apportioned. Further, the articles state, In addition to the foregoing limitation on the payment of cash dividends on the Common Stock, no cash dividends shall be paid in excess of ten percent (10%) of the profits of the corporation in any calendar year or in excess of seventy-five cents (0.75) for each One Thousand Dollars ($1,000.00) of insurance in force in any calendar year, whichever is the greater. Also, In addition to all other limitations upon the payment of dividends, and except as otherwise provided herein, the corporation shall not declare dividends upon its Common Stock or participating dividends to policyholders except with the approval of the holders of seventy-five percent (75%) of all issued and outstanding shares of the Common Stock.

Dividend distributions are also restricted by the Company’s Bylaws. Article II, Section 6 of the Bylaws of the Company states, In addition to the usual rights and powers of stockholders, as provided in the articles of association of the corporation and by law, the approval of the holders of seventy-five percent (75%) of all issued and outstanding Common Stock of the corporation shall be required to authorize the payment of dividends upon the capital stock of the corporation or participating dividends to policyholders.

At its regularly scheduled meeting on February 20, 2024, the Board of Directors of the Company declared a dividend on its outstanding common stock totaling $24,800,000 to be paid on February 20, 2024 to the ten shareholders of record at February 20, 2024. The dividend declaration and payment were approved in accordance with the Articles of Association and Bylaws of the Company.

At its regularly scheduled meeting on February 21, 2023, the Board of Directors of the Company declared a dividend on its outstanding common stock totaling $21,500,000 to be paid on February 21, 2023 to the ten shareholders of record at February 21, 2023. The dividend declaration and payment were approved in accordance with the Articles of Association and Bylaws of the Company.

Unassigned surplus funds are held for the benefit of stockholders. Total unassigned surplus was $3,561,962,746 and $3,257,686,046 at December 31, 2024 and 2023, respectively.

53 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(13) Separate Accounts

The separate accounts held by the Company relate to individual annuities and life products of a nonguaranteed return nature. The net investment experience of the separate accounts is credited directly to the policyholder and can be positive or negative. The separate accounts assets and liabilities represent funds that are separately administered, principally for the benefit of certain policyholders who bear the investment risk. The separate accounts assets and liabilities are carried at fair value. Revenues and expenses related to the separate accounts assets and liabilities, to the extent of benefits provided to the separate accounts policyholders, are excluded from the amounts reported in the accompanying statutory statements of earnings.

Separate accounts premiums and other considerations amounted to $178,974 in 2024 and $192,103 in 2023. Reserves for separate accounts with the assets at fair value were $9,071,078 and $8,320,598, at December 31, 2024 and 2023, respectively. The separate accounts had expense allowances in the amount of $16 and $11 at December 31, 2024 and 2023, respectively.

54 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(14) Fair Value Measurements

Included in various investment related line items in the financial statements are certain financial instruments carried at fair value. Other financial instruments are periodically measured at fair value, such as when impaired, or, for certain bonds and preferred stock when carried at the lower of cost or market.

The fair value of an asset is the amount at which that asset could be bought or sold in a current transaction between willing parties, that is, other than in a forced or liquidation sale. The fair value of a liability is the amount at which that liability could be incurred or settled in a current transaction between willing parties, that is, other than in a forced or liquidation sale.

Fair values are based on quoted market prices when available. When market prices are not available, fair value is generally estimated using discounted cash flow analyses, incorporating current market inputs for similar financial instruments with comparable terms and credit quality (matrix pricing). In instances where there is little or no market activity for the same or similar instruments, the Company estimates fair value using methods, models and assumptions that management believes market participants would use to determine a current transaction price. These valuation techniques involve some level of management estimation and judgment, which becomes significant with increasingly complex instruments or pricing models. Where appropriate, adjustments are included to reflect the risk inherent in a particular methodology, model or input used.

The Company’s financial assets and liabilities carried at fair value have been classified, for disclosure purposes, based on a hierarchy defined by SSAP No. 100R, Fair Value Measurements. 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 asset’s or a liability’s 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 – Values are unadjusted quoted prices for identical assets and liabilities in active markets accessible at the measurement date.

Level 2 – Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are observable or can be corroborated by market data for the term of the instrument. Such inputs include market interest rates and volatilities, spreads and yield curves.

Level 3 – Certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date.

55 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(a) Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Given the Company’s investment asset strategy, a relatively small portion of the Company’s investment assets are measured at fair value. The following tables provide information as of December 31, 2024 and 2023 about the Company’s financial assets and liabilities measured at fair value on a recurring basis.

	December 31, 2024
	Level 1		Level 2		Level 3		Total
Assets at fair value:
Bonds	$	74,439,550		10,167,192		—		84,606,742
Common stocks		779,492,154		280,025,499		9,089,400		1,068,607,053
Perpetual preferred stocks		—		22,186,975		11,061,231		33,248,206
Separate account assets		—		9,071,094		—		9,071,094
Cash equivalents		98,526,152		—		—		98,526,152
Total assets at fair value	$	952,457,856		321,450,760		20,150,631		1,294,059,247
Liabilities at fair value:
Separate account liabilities	$	—		9,071,094		—		9,071,094
Total liabilities at fair value	$	—		9,071,094		—		9,071,094

	December 31, 2023
		Level 1	Level 2	Level 3	Total
Assets at fair value:
Bonds	$	75,127,502	846,666	—	75,974,168
Common stocks		659,040,271	140,214,064	33,190,931	832,445,266
Perpetual preferred stocks		—	25,135,062	9,872,913	35,007,975
Separate account assets		—	8,320,609	—	8,320,609
Cash equivalents		82,110,313	—	—	82,110,313
Derivative assets		—	264,031	—	264,031
Total assets at fair value	$	816,278,086	174,780,432	43,063,844	1,034,122,362
Liabilities at fair value:
Derivative liabilities	$	—	131,611	—	131,611
Separate account liabilities		—	8,320,609	—	8,320,609
Total liabilities at fair value	$	—	8,452,220	—	8,452,220

Fair values and changes in the fair values of separate account assets generally accrue directly to the policyholders and are not included in the Company’s revenues and expenses or surplus.

56 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(b) Level 1 Financial Assets and Liabilities

The Level 1 financial assets include actively traded exchange-listed equity securities, exchange traded bond mutual funds, and all cash equivalents.

(c) Level 2 Financial Assets and Liabilities

Bonds, such as co-investments and bank loans, and preferred stocks within the fair value hierarchy of Level 2 are those which are less liquid and rely on the observable trading levels of comparable securities as inputs to determine fair value. Common stocks within the fair value hierarchy of Level 2 are mutual funds and are based on net asset value calculated by the fund manager, which is used as the basis for current transactions. The mutual funds are not considered Level 1 as they are not traded in the open market. The Company has separate account financial assets and liabilities (divided into Subaccount Funds) that are managed and priced by external investment fund managers. As of December 31, 2024 and 2023, the separate account investments in the Funds are valued within the fair value hierarchy as Level 2. Net asset value is quoted by each Fund and is derived by the fair value of the Fund’s underlying investments. The Funds are not considered Level 1 as they are not traded in the open market; rather the separate accounts sell and redeem shares at net asset value with the Funds. The characterization of the underlying securities held by the Funds in accordance with SSAP No. 100R differs from the characterization of an investment in the Fund.

(d) Level 3 Financial Assets and Liabilities

The Company’s preferred stock within the fair value hierarchy of Level 3 is valued by a third party general partner whose limited partnership also owns shares. The price is based primarily on unobservable inputs. The Company also classifies privately placed equity securities in Level 3. Fair values are derived principally using unobservable inputs as there is little, if any, relevant market data.

57 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(e) Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis

The following table summarizes the changes in assets classified in Level 3 for 2023 and 2024. Gains and losses reported in this table may include changes in fair value that are attributable to both observable and unobservable inputs.

Balance at December 31, 2022	$	43,525,140
Total gains or losses (realized/unrealized):
Included in net income		—
Included in surplus		(461,296	)
Purchases, issuances and settlements		—
Transfers in (out) of Level 3		—
Balance at December 31, 2023		43,063,844
Total gains or losses (realized/unrealized):
Included in net income		108,586
Included in surplus		2,086,805
Purchases, issuances and settlements		(108,614	)
Transfers in (out) of Level 3		(24,999,990	)
Balance at December 31, 2024	$	20,150,631
Total gains (losses) included in income attributable to instruments held at the reporting date	$	—

Realized gains/losses on sales or impairment of equity securities are included in net income, and changes in unrealized gains/losses have been included in surplus.

Reclassifications impacting Level 3 financial instruments are reported as transfers in (out) of the Level 3 category as of the beginning of the quarter in which the transfer occurs. Therefore, gains and losses in income only reflect activity for the period the instrument was classified in Level 3.

(f) Financial Instruments Not Carried at Fair Value

SSAP No. 100R, Fair Value Measurements, requires additional disclosures of fair value information of financial instruments. The following include disclosures for the other financial instruments not carried at fair value and not included in the above disclosure.

The fair values of financial instruments presented below are estimates of fair values at a specific point in time using available market information and valuation methodologies considered appropriate by management. These estimates are subjective in nature and involve uncertainties and significant judgment in the interpretation of current market data. Therefore, the fair values presented are not necessarily indicative of amounts the Company could realize or settle currently. The Company does not intend to dispose of or liquidate such instruments prior to maturity.

58 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

The carrying amounts of cash, accounts receivable, and accounts payable approximate their fair values due to the short-term nature of these financial instruments.

The carrying amounts and fair values of the Company’s debt securities and preferred stocks are disclosed in note 2 of the notes to the statutory financial statements. For marketable debt securities and preferred stocks, fair values are based on quoted market prices. If a quoted market price is not available, as in the case of private placements, fair value is estimated using quoted market prices for similar securities.

The fair value for mortgage loans was determined on a loan-by-loan basis using market yields and coupon rates. Market yield for each loan was determined by adding an appropriate pricing spread to the yields on similar maturity treasury issues. The fair value for each loan was calculated as the present value of the future interest and principal payments at the market yield. The fair value of notes payable was determined using the current market loan rate from the Federal Home Loan Bank. The carrying amount and fair value of the Company’s investments in mortgage loans and notes payable at December 31, 2024 and 2023 follow:

	2024				2023
	Carrying		Estimated		Carrying		Estimated
	amount		fair value		amount		fair value
Commercial mortgages	$	2,122,332,698		1,897,347,487		2,071,054,939		1,941,647,854
Residential mortgages		1,394,670		1,394,670		1,631,737		1,631,737
	$	2,123,727,368		1,898,742,157		2,072,686,676		1,943,279,591
Notes payable	$	140,734,207		129,366,574		140,734,204		126,959,946

The fair value of annuity contracts was determined to be the Company’s statutory reserve as such amount most closely approximates the current value of the expected payments under such contracts. Such reserve is higher than the policy surrender values, which is considered the floor value and lower than the account value, which is considered the maximum value. The account value does not approximate the amount the Company anticipates paying under such contracts due to anticipated surrenders.

It is not considered practicable to determine the fair value of the Company’s liability for pension plan administration funds due to the difficulty in calculating an estimated payment pattern and period. Such funds currently bear interest at a rate of approximately 3.90%. The interest rate will adjust annually based on investment portfolio returns for the related assets. Such funds have no stated maturity.

59 (Continued)

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Notes to Statutory Financial Statements

December 31, 2024 and 2023

(g) Fair Value of all Financial Instruments

The aggregate fair value of all financial instruments as of December 31, 2024 is presented in the table below:

Type of financial	Aggregate		Admitted
instrument	fair value		value		Level 1		Level 2		Level 3
Bonds	$	9,664,864,397		10,392,136,597		163,950,647		9,493,044,322		7,869,428
Short term bonds		13,437		13,437				13,437
Cash equivalents		98,526,152		98,526,152		98,526,152		—		—
Common stock		165,658,620		165,658,620		156,569,220		—		9,089,400
Mutual funds		902,948,433		902,948,433		622,922,934		280,025,499		—
Preferred stock		33,633,206		33,648,206		—		22,571,975		11,061,231
Mortgage loans		1,898,742,157		2,123,727,368		—		1,898,742,157		—

The aggregate fair value of all financial instruments as of December 31, 2023 is presented in the table below:

Type of financial	Aggregate		Admitted
instrument	fair value		value		Level 1		Level 2		Level 3
Bonds	$	9,757,861,408		10,445,444,509		176,153,140		9,571,123,235		10,585,033
Cash equivalents		82,110,313		82,110,313		82,110,313		—		—
Common stock		194,723,360		194,723,360		161,532,429		—		33,190,931
Mutual funds		637,721,906		637,721,906		497,507,842		140,214,064		—
Preferred stock		35,364,476		35,407,975		—		25,491,563		9,872,913
Mortgage loans		1,879,245,469		2,072,686,676		—		1,879,245,469		—
Derivative investments (net)		132,420		132,420		—		132,420		—

The Company does not have any financial instruments held at 2024 or 2023 that are considered not practicable to estimate fair value.

60

Schedule 1

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Selected Financial Data

December 31, 2024

Investment income earned:
U.S. government bonds	$	18,289,484
Other bonds (unaffiliated)		417,208,473
Preferred stocks (unaffiliated)		1,228,987
Common stocks (unaffiliated)		25,826,838
Mortgage loans		81,499,982
Real estate		3,061,620
Premium notes, policy loans and liens		46,234,886
Cash, cash equivalents and short-term investments		9,659,441
Derivative instruments		(2,788	)
Other invested assets		67,124,905
Aggregate write-ins for investment income		622,118
Gross investment income	$	670,753,946
Real estate owned – book value less encumbrances	$	19,501,096
Mortgage loans – book value:
Residential mortgages	$	1,394,670
Commercial mortgages		2,122,332,698
Total mortgage loans	$	2,123,727,368
Mortgage loans by standing – book value:
Good standing	$	2,123,727,368
Good standing with restructured terms		—
Interest overdue more than 90 days, not in foreclosure		—
Foreclosure in process		—
Other long-term assets – statement value	$	1,323,595,778
Policy loans	$	638,347,049
Bonds and stocks of parents, subsidiaries and affiliates – book value:
Bonds	$	—
Preferred stocks		—
Common stocks		—
Bonds and short-term investments by maturity – statement value:
Due within one year or less	$	923,497,467
Over 1 year through 5 years		3,460,544,578
Over 5 years through 10 years		3,676,188,857
Over 10 years through 20 years		1,790,761,738
Over 20 years		466,717,844
No maturity date		74,439,550
Total by maturity	$	10,392,150,034

61 (Continued)

Schedule 1

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Selected Financial Data

December 31, 2024

Bonds and short-term investments by class – statement value:
Class 1	$	6,231,788,460
Class 2		3,897,126,611
Class 3		127,010,419
Class 4		61,505,718
Class 5		64,484,450
Class 6		10,234,376
Total by class	$	10,392,150,034
Total bonds, short-term investments and cash equivalents, publicly traded	$	6,625,295,759
Total bonds, short-term investments and cash equivalents, privately placed		3,766,854,275
Preferred stocks – statement value		33,648,206
Common stocks (unaffiliated) – fair value		1,068,607,053
Short-term investments – book value		13,437
Cash equivalents – book value		98,526,152
Options, caps and floors owned – statement value		—
Options, caps and floors written and in force – statement value		—
Collar, swap and forward agreements open – statement value		—
Futures contracts open – current value		—
Cash on deposit		106,814,840
Life insurance in force:
Industrial	$	—
Ordinary		214,817,873,000
Credit life		—
Group life		2,367,057,000
Amount of accidental death insurance in force under ordinary policies	$	403,497,000
Life insurance policies with disability provisions in force:
Industrial	$	—
Ordinary		32,285,797,000
Credit life		—
Group life		2,367,039,000
Supplementary contracts in force:
Ordinary – not involving life contingencies:
Amount on deposit	$	3,920,701
Income payable		19,694,036
Ordinary – involving life contingencies:
Income payable	$	24,566,103
Group – not involving life contingencies:
Amount on deposit	$	—
Income payable		—
Group – involving life contingencies:
Income payable	$	—

62 (Continued)

Schedule 1

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY 

Selected Financial Data

December 31, 2024

Annuities:
Ordinary:
Immediate – amount of income payable	$	15,360,036
Deferred – fully paid account balance		374,726,677
Deferred – not fully paid – account balance		1,893,806,640
Group:
Amount of income payable	$	74,160
Fully paid account balance		—
Not fully paid – account balance		37,622,325
Accident and health insurance – premiums in force:
Other	$	22,135,097
Group		3,959,287
Credit		—
Deposit funds and dividend accumulations:
Deposit funds – account balance	$	493,484,800
Dividend accumulations – account balance		202,599,359
Claim payments 2024
Group accident and health – year ended December 31, 2024:
2024	$	18,000
2023		208,000
2022		212,000
2021		5,000
2020		37,000
Prior		418,000
Other accident and health – year ended December 31, 2024:
2024	$	1,680,000
2023		1,785,000
2022		1,391,000
2021		913,000
2020		710,000
Prior		2,097,000

See accompanying independent auditors’ report.

63

Schedule 2

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Summary Investment Schedule

December 31, 2024

(In thousands)

					Admitted assets as
					reported in the
Investment categories	Gross investment holdings				annual statement
Long-term bonds (Schedule D Part 1):
U.S. governments	$	574,664	3.632	%	$	574,664	3.635	%
All other governments		38,327	0.242			38,327	0.242
U.S. states, territories and possessions, etc. guaranteed		19,651	0.124			19,651	0.124
U.S. political subdivisions of states, territories and possessions		239,277	1.512			239,277	1.513
U.S. special revenue and special assessment obligations		1,866,022	11.793			1,866,022	11.802
Industrial and miscellaneous		7,526,072	47.562			7,526,072	47.601
Hybrid securities		46,184	0.292			46,184	0.292
Parent, subsidiaries and affiliates		—	—			—	—
SVO identified funds		74,440	0.470			74,440	0.471
Bank loans		—	—			—	—
Certificates of Deposit		7,500	0.047			7,500	0.047
Total long-term bonds		10,392,137	65.675			10,392,137	65.728
Preferred stocks (Schedule D, Part 2, Section 1):
Industrial and miscellaneous (Unaffiliated)		33,648	0.213			33,648	0.213
Parent, subsidiaries and affiliates		—	—			—	—
Total preferred stocks		33,648	0.213			33,648	0.213
Common stocks (Schedule D, Part 2, Section 2):
Industrial and miscellaneous Publicly traded (Unaffiliated)		138,146	0.873			138,146	0.874
Industrial and miscellaneous Other (Unaffiliated)		27,513	0.174			27,513	0.174
Parent, subsidiaries and affiliates Publicly traded		—	—			—	—
Parent, subsidiaries and affiliates Other		—	—			—	—
Mutual Funds		280,025	1.770			280,025	1.771
Unit investment trusts		—	—			—	—
Closed-end funds		—	—			—	—
Exchange traded funds		622,923	3.937			622,923	3.940
Total common stocks		1,068,607	6.753			1,068,607	6.759
Mortgage loans (Schedule B):
Farm mortgages		—	—			—	—
Residential mortgages		1,394	0.009			1,394	0.009
Commercial mortgages		2,122,333	13.412			2,122,333	13.423
Mezzanine real estate loans		—	—			—	—
Total mortgages loans		2,123,727	13.421			2,123,727	13.432
Real estate (Schedule A)
Properties occupied by company		18,412	0.116			18,412	0.116
Properties held for production of income		1,089	0.007			1,089	0.007
Properties held for sale		—	—			—	—
Total real estate		19,501	0.123			19,501	0.123
Cash, cash equivalents and short-term investments:
Cash (Schedule E, Part 1)		106,820	0.675			106,820	0.676
Cash equivalents (Schedule E, Part 2)		98,526	0.623			98,526	0.623
Short-term investments (Schedule DA)		13	N/M			13	N/M
Total cash, cash equivalents and short-term investment		205,359	1.298			205,359	1.299
Contract loans		638,347	4.034			638,347	4.037
Derivatives (Schedule DB)		—	—			—	—
Other invested assets (Schedule BA)		1,336,561	8.447			1,323,596	8.372
Receivables for securities		5,781	0.037			5,781	0.037
Securities Lending (Schedule DL, Part 1)		—	—			—	—
Other invested assets (Page 2, Line 11)		—	—			—	—
Total invested assets	$	15,823,668	100.000	%	$	15,810,703	100.000	%

N/M – Not meaningful

See accompanying independent auditors’ report.

64

Schedule 3

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Schedule of Supplemental Investment Risks Interrogatories

December 31, 2024

(In thousands)

1) Total admitted assets (excluding separate account assets): $ 16,481,904  

2)  Ten largest exposures to a single issuer/borrower/investment:      

Issuer	Description of exposure	Amount		Percentage
Duke Energy Corporation	Indust. & Misc. - Issuer Obligations; Hybrid Securities - Issuer Obligations	$	73,597		0.4	%
WEC Energy Group, Inc.	Indust. & Misc. - Issuer Obligations		69,305		0.4
Sempra	Indust. & Misc. - Issuer Obligations		61,970		0.4
Berkshire Hathaway Inc.	Indust. & Misc. - Issuer Obligations		61,353		0.4
NextEra Energy, Inc.	Indust. & Misc. - Issuer Obligations; Hybrid Securities - Issuer Obligations		59,445		0.4
Entergy Corporation	Indust. & Misc. - Issuer Obligations		57,669		0.3
American Electric Power Company, Inc.	Indust. & Misc. - Issuer Obligations; Hybrid Securities - Issuer Obligations		55,884		0.3
National Football League, Inc.	Indust. & Misc. - Issuer Obligations		55,698		0.3
International Business Machines Corporation	Indust. & Misc. - Issuer Obligations		55,015		0.3
Unilever PLC	Indust. & Misc. - Issuer Obligations		49,665		0.3

3)  Total admitted assets held in bonds and preferred stocks by NAIC rating:      

Bonds	Amount		Percentage			Stocks		Amount		Percentage
NAIC-1	$	6,231,788		37.8	%		P/RP-1	$	1,189		N/M
NAIC-2		3,897,127		23.6			P/RP-2		15,084		0.1
NAIC-3		127,010		0.8			P/RP-3		6,314		N/M
NAIC-4		61,506		0.4			P/RP-4		—		—
NAIC-5		64,471		0.4			P/RP-5		11,061		0.1
NAIC-6		10,234		0.1			P/RP-6		—		—

4)  Admitted assets held in foreign investments:

	Amount		Percentage
Total admitted assets held in foreign investments	$	1,165,350		7.1	%
Foreign-currency denominated investments		—		—
Insurance liabilities denominated in that same foreign currency		—		—

5)  Aggregate foreign investment exposure categorized by NAIC sovereign rating:

	Amount		Percentage
Countries rated by NAIC-1	$	1,053,525		6.4	%
Countries rated by NAIC-2		99,354		0.6
Countries rated by NAIC-3 or below		8,471		0.1

6)  Two largest foreign investment exposures to a single country, categorized by the country’s NAIC sovereign rating:

	Amount		Percentage
Countries rated NAIC-1:
Country:
Australia	$	389,087		2.4	%
United Kingdom		207,321		1.3
Countries rated NAIC-2:
Country:
Mexico	$	53,691		0.3
Italy		12,739		0.1
Countries rated NAIC-3 or below:
Country:
Colombia	$	2,371		N/M
Morocco		2,283		N/M

7) Aggregate unhedged foreign currency exposure: —   —  

8)  Aggregate unhedged foreign currency exposure categorized by NAIC sovereign rating:                

		Amount	Percentage
Countries rated by NAIC-1	$	—	—	%
Countries rated by NAIC-2		—	—
Countries rated by NAIC-3 or below		—	—

9)   Two largest unhedged foreign currency exposures to a single country, categorized by the country’s NAIC sovereign rating:

		Amount	Percentage
Countries rated NAIC-1:	$	—	—	%
Countries rated NAIC-2:		—	—
Countries rated NAIC-3 or below:		—	—

N/M – Not meaningful

65 (Continued)

Schedule 3

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Schedule of Supplemental Investment Risks Interrogatories

December 31, 2024

(In thousands)

10)   Ten largest nonsovereign foreign issues:

Issuer	NAIC Rating		Amount		Percentage
Transurban Group		2	$	26,006		0.2	%
Equinor ASA		1		25,522		0.2
Rolls-Royce Holdings plc		2		19,617		0.1
International Business Machines Corporation		1		18,041		0.1
Sg Finance & Treasury Limited		2		18,000		0.1
Ferguson Enterprises Inc.		2		16,962		0.1
Enel SpA		2		16,014		0.1
Australian Gas Networks Limited		1		16,000		0.1
Siemens Aktiengesellschaft		1		15,908		0.1
Sydney Airport Limited		2		15,497		0.1

11)  Assets held in Canadian investments total $192,658 or 1.2% of the Company’s total admitted assets.

12)  There were no admitted assets held in investments with contractual sales restrictions.

13)  Ten largest equity interests:

Issuer	Investment category	Amount		Percentage
PIMCO:INCOME INST	Mutual Funds – Common Stocks	$	235,934		1.4	%
SPDR S&P 500	Mutual Funds – Common Stocks		121,122		0.7
VANGUARD 500 IDX ETF	Mutual Funds – Common Stocks		117,538		0.7
VANECK:MS WIDE MOAT	Mutual Funds – Common Stocks		78,329		0.5
SIMPLIFY:SHTM TRS FS	Mutual Funds – Common Stocks		63,000		0.4
INVESCO S&P500 EWGHT	Mutual Funds – Common Stocks		57,531		0.3
TOUCHSTONE:SDS CP EMG I	Mutual Funds – Common Stocks		44,092		0.3
ISHARES:CORE MSCI EMMKTS	Mutual Funds – Common Stocks		41,426		0.3
ISHARES:CORE MSCI EAFE	Mutual Funds – Common Stocks		39,133		0.2
SPDR EURO STOXX 50	Mutual Funds – Common Stocks		29,640		0.2

14)    Assets held in nonaffiliated, privately placed equities total $38,574 or 0.2% of the Company’s total admitted assets.

15)   There were no admitted assets held in general partnership interests.

16)   Ten largest aggregate mortgage interests:

Issuer	Investment category	Amount		Percentage
95 Whse Inc.	Commercial	$	24,774		0.2	%
Springhill Land Group Series PH-1	Commercial		18,832		0.1
Elm Apartmetns LLC	Commercial		18,567		0.1
Sawmill Creek Apartments, LLC	Commercial		16,010		0.1
Palm Bay Developers LLC	Commercial		14,683		0.1
Springs of Royal Oaks Apartments, LLC	Commercial		14,446		0.1
Carriage Crossing Apartments, LLC	Commercial		14,220		0.1
BOP Partnership 2	Commercial		14,087		0.1
Campbell Project Parnters, LLC	Commercial		13,135		0.1
Lost Hills Office Parnters, LLC	Commercial		12,630		0.1

Amount and percentage of Company’s total admitted assets held in the following categories of mortgage loans:  

	Loans
Construction loans	$	—	—	%
Mortgage loans over 90 days past due		—	—
Mortgage loans in the process of foreclosure		—	—
Mortgage loans foreclosed		14,626	0.1
Restructured mortgage loans		—	—

N/M – Not meaningful

66 (Continued)

Schedule 3

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Schedule of Supplemental Investment Risks Interrogatories

December 31, 2024

(In thousands)

17)   Aggregate mortgage loans having the following loan-to-value ratios as determined from the most current appraisal as of the annual statement date:

Loan-to-value	Residential				Commercial				Agricultural
Above 95%	$	—	—	%	$	—	—	%	$	—	—	%
91% to 95%		—	—			—	—			—	—
81% to 90%		—	—			—	—			—	—
71% to 80%		404	N/M			—	—			—	—
Below 70%		991	N/M			2,122,333	12.9			—	—

18)   There were no assets held in real estate reported in the Annual Statement Schedule A that exceeded 2.5% of the Company’s total admitted assets.

19)   There were no admitted assets held in investments held in mezzanine real estate loans.

20)   Total admitted assets subject to the following types of agreements:

	At year-end					At end of each quarter
Agreement type	Amount		Percentage			1st Qtr		2nd Qtr		3rd Qtr
Securities lending	$	141,178		0.9	%	$	117,454		86,550		130,090
Repurchase		—		—			—		—		—
Reverse repurchase		—		—			—		—		—
Dollar repurchase		—		—			—		—		—
Dollar reverse repurchase		—		—			—		—		—

21)   Warrants not attached to other financial instruments, options, caps, and floors:

		Owned			Written
Hedging	$	—	—	$	—	—
Income generation		—	—		—	—
Other		—	—		—	—

22) Potential exposure for collars, swaps and forwards:

					At end of each quarter
		At year-end				1st Qtr	2nd Qtr	3rd Qtr
Hedging	$	—	—	%	$	—	—	—
Income generation		—	—			—	—	—
Replications		—	—			—	—	—
Other		—	—			—	—	—

23) Potential exposure for futures contracts:

					At end of each quarter
		At year-end				1st Qtr	2nd Qtr	3rd Qtr
Hedging	$	—	—	%	$	—	—	—
Income generation		—	—			—	—	—
Replications		—	—			—	—	—
Other		—	—			—	—	—

N/M – Not meaningful

See accompanying independent auditors’ report.

67

Schedule 4

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Supplemental Schedule of Reinsurance Risk Interrogatories

Year ended December 31, 2024

The following information regarding reinsurance contracts is presented to satisfy the disclosure requirements in SSAP No. 61R, Life, Deposit-Type and Accident and Health Reinsurance, which apply to reinsurance contracts entered into, renewed or amended on or after January 1, 1996.

1. Has Southern Farm Bureau Life Insurance Company reinsured any risk with any other entity under a reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) that is subject to Appendix A-791, Life and Health Reinsurance Agreements, and includes a provision that limits the reinsurer’s assumption of significant risks identified in Appendix A-791? Examples of risk-limiting features include provisions such as a deductible, a loss ratio corridor, a loss cap, an aggregate limit or other provisions that result in similar effects.

Yes ☐ No ☒

If yes, indicate the number of reinsurance contracts to which such provisions apply:     __________

If yes, indicate if deposit accounting was applied for all contracts subject to Appendix A-791 that limit significant risks.

Yes ☐ No ☐ N/A ☒

2. Has Southern Farm Bureau Life Insurance Company reinsured any risk with any other entity under a reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) that is not subject to Appendix A-791, for which reinsurance accounting was applied and includes a provision that limits the reinsurer’s assumption of risk?

Examples of risk-limiting features include provisions such as a deductible, a loss ratio corridor, a loss cap, an aggregate limit or other provisions that result in similar effects.

Yes ☐ No ☒

If yes, indicate the number of reinsurance contracts to which such provisions apply:     __________

If yes, indicate whether the reinsurance credit was reduced for the risk-limiting features.

Yes ☐ No ☐ N/A ☒

68 (Continued)

Schedule 4

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Supplemental Schedule of Reinsurance Risk Interrogatories

Year ended December 31, 2024

3. Does Southern Farm Bureau Life Insurance Company have any reinsurance contracts (other than reinsurance contracts with a federal or state facility) that contain one or more of the following features which may result in delays in payment in form or in fact:

(a) Provisions that permit the reporting of losses to be made less frequently than quarterly;

(b) Provisions that permit settlements to be made less frequently than quarterly;

(c) Provisions that permit payments due from the reinsurer to not be made in cash within ninety (90) days of the settlement date (unless there is no activity during the period); or

(d) The existence of payment schedules, accumulating retentions from multiple years, or any features inherently designed to delay timing of the reimbursement to the ceding entity.

Yes ☐ No ☒

4. Has Southern Farm Bureau Life Insurance Company reflected reinsurance accounting credit for any contracts that are not subject to Appendix A-791 and not yearly renewable term reinsurance, which meet the risk transfer requirements of SSAP No. 61R?

Type of contract:	Response:	Identify reinsurance contract(s):	Has the insured event(s) triggering contract coverage been recognized?
Assumption reinsurance – new for the reporting period	Yes ☐ No ☒		N/A
Non-proportional reinsurance, which does not result in significant surplus relief	Yes ☐ No ☒		Yes ☐ No ☐ N/A ☒

69 (Continued)

Schedule 4

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

Supplemental Schedule of Reinsurance Risk Interrogatories

Year ended December 31, 2024

5. Has Southern Farm Bureau Life Insurance Company ceded any risk, which is not subject to Appendix A-791 and not yearly renewable term reinsurance, under any reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) during the period covered by the financial statements, and either:

(a) Accounted for that contract as reinsurance under statutory accounting principles (SAP) and as a deposit under generally accepted accounting principles (GAAP); or

Yes ☐ No ☒ N/A ☐

(b) Accounted for that contract as reinsurance under GAAP and as a deposit under SAP?

Yes ☐ No ☒ N/A ☐

If the answer to item (a) or item (b) is yes, include relevant information regarding GAAP to SAP differences from the accounting policy footnote to the audited statutory-basis financial statements to explain why the contract(s) is treated differently for GAAP and SAP below:

N/A

See accompanying independent auditors’ report.

70

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Financial Statements

December 31, 2024 and 2023

(With Report of Independent Registered
Public Accounting Firm Thereon)

KPMG LLP

Suite 1100

One Jackson Place

188 East Capitol Street

Jackson, MS 39201-2127

Report of Independent Registered Public Accounting Firm

To the Board of Directors of Southern Farm Bureau Life Insurance Company and

Contractholders of Southern Farm Bureau Life Variable Life Account:

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of the subaccounts listed in the Appendix that comprise the Southern Farm Bureau Life Variable Life Account (the Separate Account), as of December 31, 2024, the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes, (collectively, the financial statements) and the financial highlights for each of the years or periods in the five-year period then ended in Note 6. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each subaccount as of December 31, 2024, the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on these financial statements and financial highlights 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 the Separate Account 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 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 and financial highlights 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 and financial highlights, 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 and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2024, by correspondence with transfer agent of the underlying mutual funds. 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 and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

/s/ KPMG LLP

We have served as the Separate Account’s auditor since 2006.

Jackson, Mississippi

April 24, 2025

KPMG LLP, a Delaware limited liability partnership and a member firm of

the KPMG global organization of independent member firms affiliated with

KPMG International Limited, a private English company limited by guarantee.

Appendix

Fidelity VIP Contrafund Subaccount (Contrafund)

Fidelity VIP Growth Subaccount (Growth)

Fidelity VIP High Income Subaccount (High Income)

Fidelity VIP Index 500 Subaccount (Index 500)

Fidelity VIP Mid Cap Subaccount (Mid Cap)

Fidelity VIP Overseas Subaccount (Overseas)

Fidelity VIP Equity-Income Subaccount (Equity-Income)

Fidelity VIP Value Strategies Subaccount (Value Strategies)

Fidelity VIP Dynamic Capital Appreciation Subaccount (Dynamic Capital)

Fidelity VIP Investment Grade Bond Subaccount (Investment Grade Bond)

Fidelity VIP Disciplined Small Cap Subaccount (Disciplined Small Cap)

Fidelity VIP Government Money Market Subaccount (Money Market)

T. Rowe Price Equity Income Subaccount (Equity Income)

T. Rowe Price Mid-Cap Growth Subaccount (Mid-Cap Growth)

T. Rowe Price Personal Strategy Balanced Subaccount (Personal Strategy Balanced)

T. Rowe Price Blue Chip Growth Subaccount (Blue Chip)

T. Rowe Price Limited-Term Bond Subaccount (Limited-Term Bond)

Franklin Income VIP Subaccount (Income Securities)

Franklin Small Cap Value VIP Subaccount (Small Cap Value)

Franklin Small-Mid Cap Growth VIP Subaccount (Small-Mid Cap)

Franklin Mutual Shares VIP Subaccount (Mutual Shares)

Templeton Global Bond VIP Subaccount (Global Income)

Franklin Rising Dividends VIP Subaccount (Rising Dividends) 

2

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Statements of Assets and Liabilities

December 31, 2024

																			Investment
					High								Equity-		Value		Dynamic		Grade		Disciplined		Money
	Contrafund		Growth		Income		Index 500		Mid Cap		Overseas		Income		Strategies		Capital		Bond		Small Cap		Market
	Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount
Assets:
Investments in shares of mutual funds, at fair value	$	608,096		450,055		29,900		237,859		596,866		328,422		92,301		24,997		18,214		59,205		1,678		60,850
Liabilities		—		—		—		—		—		—		—		—		—		—		—		—
Net assets	$	608,096		450,055		29,900		237,859		596,866		328,422		92,301		24,997		18,214		59,205		1,678		60,850
Investments in shares of mutual funds, at cost	$	418,964		379,801		32,833		114,273		562,931		279,149		80,437		22,040		12,537		67,531		1,379		60,850
Shares of mutual funds owned		10,495.28		4,642.61		6,334.84		417.65		15,891.00		12,894.47		3,471.25		1,611.66		905.26		5,392.10		89.41		60,849.67
Accumulation units outstanding		6,199.54		4,139.31		908.35		2,769.18		9,979.57		8,128.77		3,115.75		708.71		342.10		4,110.58		47.12		5,596.02
Accumulation unit value*	$	98.09		108.73		32.92		85.90		59.81		40.40		29.62		35.27		53.24		14.40		35.62		10.87

*The accumulation unit value represents the ending unit value of each open and available subaccount whether or not there is activity at the end of the period in the underlying fund.

(Continued)

3

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Statements of Assets and Liabilities

December 31, 2024

					Personal
	Equity		Mid-Cap		Strategy				Limited-		Income		Small Cap		Small-		Mutual		Global		Rising
	Income		Growth		Balanced		Blue Chip		Term Bond		Securities		Value		Mid Cap		Shares		Income		Dividends
	Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount		Subaccount
Assets:
Investments in shares of mutual funds, at fair value	$	425,674		64,008		280,422		175,571		146,314		—		84,418		20,616		9,594		1,068		6,834
Liabilities		—		—		—		—		—		—		—		—		—		—		—
Net assets	$	425,674		64,008		280,422		175,571		146,314		—		84,418		20,616		9,594		1,068		6,834
Investments in shares of mutual funds, at cost	$	409,628		62,220		272,305		100,416		150,085		—		76,053		19,540		10,180		1,444		6,386
Shares of mutual funds owned		14,972.71		2,210.97		13,391.69		2,921.81		31,196.93		0.02		5,510.31		1,085.65		569.70		88.53		231.51
Accumulation units outstanding		8,076.93		609.91		6,773.65		2,819.49		10,850.46		—		2,573.60		551.49		430.86		92.37		166.62
Accumulation unit value*	$	52.70		104.95		41.40		62.27		13.48		21.37		32.80		37.38		22.27		11.56		41.02

*The accumulation unit value represents the ending unit value of each open and available subaccount whether or not there is activity at the end of the period in the underlying fund.

See accompanying notes to financial statements.

4

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Statements of Operations

Year ended December 31, 2024

							High												Equity-			Value			Dynamic			Investment			Disciplined			Money
	Contrafund			Growth			Income			Index 500			Mid Cap			Overseas			Income			Strategies			Capital			Grade Bond			Small Cap			Market
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount			Subaccount			Subaccount			Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Income:
Dividends	$	1,068			5			1,762			2,849			3,183			5,574			1,617			257			40			2,054			18			2,938
Expenses:
Mortality and expense risk charges		(5,901	)		(4,427	)		(300	)		(2,315	)		(6,029	)		(3,544	)		(938	)		(256	)		(183	)		(610	)		(16	)		(619	)
Net investment income (loss)		(4,833	)		(4,422	)		1,462			534			(2,846	)		2,030			679			1			(143	)		1,444			2			2,319
Realized gains (losses) on investments:
Realized gains (losses) on sale of fund shares		15,770			12,675			(58	)		4,819			9,439			6,264			597			70			989			(748	)		148			—
Capital gain distributions from mutual funds		68,180			94,281			—			137			74,024			15,451			5,252			3,500			802			—			9			—
Total realized gains (losses) on investments		83,950			106,956			(58	)		4,956			83,463			21,715			5,849			3,570			1,791			(748	)		157			—
Change in unrealized appreciation (depreciation) of investments		72,509			952			761			40,242			3,584			(11,292	)		4,860			(1,666	)		2,144			(295	)		67			—
Net increase (decrease) in net assets from operations	$	151,626			103,486			2,165			45,732			84,201			12,453			11,388			1,905			3,792			401			226			2,319

(Continued)

5

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Statements of Operations

Year ended December 31, 2024

							Personal
	Equity			Mid-Cap			Strategy						Limited-			Income		Small Cap			Small-			Mutual			Global			Rising
	Income			Growth			Balanced			Blue Chip			Term Bond			Securities		Value			Mid Cap			Shares			Income			Dividends
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount			Subaccount		Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Income:
Dividends	$	7,722			—			6,309			—			5,929			—		871			—			206			—			72
Expenses:
Mortality and expense risk charges		(4,419	)		(662	)		(2,880	)		(1,652	)		(1,479	)		—		(846	)		(207	)		(98	)		(12	)		(66	)
Net investment income (loss)		3,303			(662	)		3,429			(1,652	)		4,450			—		25			(207	)		108			(12	)		6
Realized gains (losses) on investments:
Realized gains (losses) on sale of fund shares		596			523			1,333			5,294			(241	)		—		(2,731	)		11			(20	)		(7	)		13
Capital gain distributions from mutual funds		27,715			5,785			7,698			7,075			—			—		1,719			—			190			—			283
Total realized gains (losses) on investments		28,311			6,308			9,031			12,369			(241	)		—		(1,012	)		11			170			(7	)		296
Change in unrealized appreciation (depreciation) of investments		9,378			(746	)		10,547			33,996			1,148			—		9,007			2,141			626			(128	)		252
Net increase (decrease) in net assets from operations	$	40,992			4,900			23,007			44,713			5,357			—		8,020			1,945			904			(147	)		554

See accompanying notes to financial statements.

6

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Statements of Changes in Net Assets

Years ended December 31, 2024 and 2023

	Contrafund						Growth						High Income						Index 500						Mid Cap						Overseas
	Subaccount						Subaccount						Subaccount						Subaccount						Subaccount						Subaccount
	2024			2023			2024			2023			2024			2023			2024			2023			2024			2023			2024			2023
Increase (decrease) in net assets from operations:
Net investment income (loss)	$	(4,833	)		(2,375	)		(4,422	)		(2,951	)		1,462			1,215			534			784			(2,846	)		(2,166	)		2,030			41
Total realized gains (losses) on investments		83,950			26,243			106,956			20,492			(58	)		(106	)		4,956			6,806			83,463			20,526			21,715			6,628
Change in unrealized appreciation (depreciation) of investments		72,509			97,465			952			79,239			761			1,217			40,242			31,885			3,584			49,041			(11,292	)		48,565
Net increase (decrease) in net assets from operations		151,626			121,333			103,486			96,780			2,165			2,326			45,732			39,475			84,201			67,401			12,453			55,234
Contract transactions:
Transfers of net premiums		18,641			19,752			9,239			10,347			1,676			1,730			8,369			8,937			22,921			25,615			15,886			17,568
Transfers of surrenders and death benefits		(10,133	)		(19,892	)		(11,729	)		—			—			(600	)		(3	)		(1,397	)		(14,652	)		(24,611	)		(18,225	)		(21,748	)
Transfers of policy loans, net of repayments		(3,067	)		(1,608	)		(2,077	)		(2,427	)		—			—			(215	)		(1,664	)		(2,143	)		(2,246	)		(1,680	)		(2,102	)
Transfers of administrative charges		(26,554	)		(23,978	)		(18,937	)		(16,858	)		(1,116	)		(1,179	)		(10,792	)		(10,558	)		(26,884	)		(27,514	)		(12,195	)		(13,032	)
Transfers between subaccounts, including the Declared Interest Option account		(34	)		1,822			972			837			—			—			—			(21	)		519			1,394			674			600
Net increase (decrease) in net assets from contract transactions		(21,147	)		(23,904	)		(22,532	)		(8,101	)		560			(49	)		(2,641	)		(4,703	)		(20,239	)		(27,362	)		(15,540	)		(18,714	)
Total increase (decrease) in net assets		130,479			97,429			80,954			88,679			2,725			2,277			43,091			34,772			63,962			40,039			(3,087	)		36,520
Net assets at beginning of year		477,617			380,188			369,101			280,422			27,175			24,898			194,768			159,996			532,904			492,865			331,509			294,989
Net assets at end of year	$	608,096			477,617			450,055			369,101			29,900			27,175			237,859			194,768			596,866			532,904			328,422			331,509

(Continued)

7

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Statements of Changes in Net Assets

Years ended December 31, 2024 and 2023

	Equity-Income						Value Strategies						Dynamic Capital						Investment Grade Bond						Disciplined Small Cap						Money Market
	Subaccount						Subaccount						Subaccount						Subaccount						Subaccount						Subaccount
	2024			2023			2024			2023			2024			2023			2024			2023			2024			2023			2024			2023
Increase (decrease) in net assets from operations:
Net investment income (loss)	$	679			748			1			34			(143	)		(104	)		1,444			926			2			(1	)		2,319			2,096
Total realized gains (losses) on investments		5,849			4,124			3,570			849			1,791			762			(748	)		(1,246	)		157			110			—			—
Change in unrealized appreciation (depreciation) of investments		4,860			3,341			(1,666	)		2,891			2,144			3,129			(295	)		3,503			67			345			—			—
Net increase (decrease) in net assets from operations		11,388			8,213			1,905			3,774			3,792			3,787			401			3,183			226			454			2,319			2,096
Contract transactions:
Transfers of net premiums		2,853			3,409			250			250			111			114			3,861			4,352			635			738			8,930			7,517
Transfers of surrenders and death benefits		(8,154	)		(17,172	)		—			—			—			—			(4,274	)		(8,675	)		—			(1,843	)		—			(572	)
Transfers of policy loans, net of repayments		(3	)		(3	)		—			—			(2,903	)		(10	)		(3	)		(3	)		(1,381	)		(5	)		(50	)		(50	)
Transfers of administrative charges		(2,057	)		(2,485	)		(195	)		(188	)		(146	)		(133	)		(1,403	)		(1,745	)		(167	)		(155	)		(7,482	)		(7,004	)
Transfers between subaccounts, including the Declared Interest Option account		—			—			—			—			(52	)		—			—			—			(41	)		—			—			—
Net increase (decrease) in net assets from contract transactions		(7,361	)		(16,251	)		55			62			(2,990	)		(29	)		(1,819	)		(6,071	)		(954	)		(1,265	)		1,398			(109	)
Total increase (decrease) in net assets		4,027			(8,038	)		1,960			3,836			802			3,758			(1,418	)		(2,888	)		(728	)		(811	)		3,717			1,987
Net assets at beginning of year		88,274			96,312			23,037			19,201			17,412			13,654			60,623			63,511			2,406			3,217			57,133			55,146
Net assets at end of year	$	92,301			88,274			24,997			23,037			18,214			17,412			59,205			60,623			1,678			2,406			60,850			57,133

(Continued)

8

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Statements of Changes in Net Assets

Years ended December 31, 2024 and 2023

	Equity Income						Mid-Cap Growth						Personal Strategy Balanced						Blue Chip						Limited-Term Bond
	Subaccount						Subaccount						Subaccount						Subaccount						Subaccount
	2024			2023			2024			2023			2024			2023			2024			2023			2024			2023
Increase (decrease) in net assets from operations:
Net investment income (loss)	$	3,303			4,006			(662	)		(579	)		3,429			3,240			(1,652	)		(1,237	)		4,450			3,094
Total realized gains (losses) on investments		28,311			17,130			6,308			3,894			9,031			49			12,369			8,059			(241	)		(516	)
Change in unrealized appreciation (depreciation) of investments		9,378			10,673			(746	)		6,289			10,547			31,321			33,996			39,514			1,148			2,674
Net increase (decrease) in net assets from operations		40,992			31,809			4,900			9,604			23,007			34,610			44,713			46,336			5,357			5,252
Contract transactions:
Transfers of net premiums		17,738			19,404			2,340			2,373			14,051			15,896			3,418			3,882			12,611			13,151
Transfers of surrenders and death benefits		—			(25,902	)		—			—			(5,980	)		(19,891	)		(7,106	)		(18,770	)		(4,013	)		(8,611	)
Transfers of policy loans, net of repayments		(244	)		(276	)		(90	)		(117	)		(32	)		(1,833	)		(3	)		(3	)		(50	)		(82	)
Transfers of administrative charges		(23,045	)		(24,326	)		(3,435	)		(3,551	)		(14,154	)		(14,840	)		(3,139	)		(3,127	)		(7,978	)		(8,605	)
Transfers between subaccounts, including the Declared Interest Option account		—			2,304			—			—			577			2,791			—			—			—			—
Net increase (decrease) in net assets from contract transactions		(5,551	)		(28,796	)		(1,185	)		(1,295	)		(5,538	)		(17,877	)		(6,830	)		(18,018	)		570			(4,147	)
Total increase (decrease) in net assets		35,441			3,013			3,715			8,309			17,469			16,733			37,883			28,318			5,927			1,105
Net assets at beginning of year		390,233			387,220			60,293			51,984			262,953			246,220			137,688			109,370			140,387			139,282
Net assets at end of year	$	425,674			390,233			64,008			60,293			280,422			262,953			175,571			137,688			146,314			140,387

(Continued)

9

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Statements of Changes in Net Assets

Years ended December 31, 2024 and 2023

	Income Securities				Small Cap Value						Small-Mid Cap						Mutual Shares						Global Income						Rising Dividends
	Subaccount				Subaccount						Subaccount						Subaccount						Subaccount						Subaccount
	2024		2023		2024			2023			2024			2023			2024			2023			2024			2023			2024			2023
Increase (decrease) in net assets from operations:
Net investment income (loss)	$	—		—		25			(247	)		(207	)		(183	)		108			102			(12	)		(12	)		6			4
Total realized gains (losses) on investments		—		—		(1,012	)		55			11			(27	)		170			621			(7	)		(7	)		296			637
Change in unrealized appreciation (depreciation) of investments		—		—		9,007			10,278			2,141			4,308			626			318			(128	)		44			252			(67	)
Net increase (decrease) in net assets from operations		—		—		8,020			10,086			1,945			4,098			904			1,041			(147	)		25			554			574
Contract transactions:
Transfers of net premiums		—		—		2,754			3,203			347			349			—			63			—			—			1,214			1,259
Transfers of surrenders and death benefits		—		—		(7,026	)		(13,193	)		—			—			—			(1,142	)		—			—			—			(1,187	)
Transfers of policy loans, net of repayments		—		—		(1,352	)		(7	)		(1,530	)		(6	)		—			—			—			—			—			—
Transfers of administrative charges		—		—		(1,841	)		(2,200	)		(181	)		(176	)		(66	)		(78	)		(6	)		(6	)		(313	)		(236	)
Transfers between subaccounts, including the Declared Interest Option account		—		—		(40	)		—			(18	)		—			—			—			—			—			—			—
Net increase (decrease) in net assets from contract transactions		—		—		(7,505	)		(12,197	)		(1,382	)		167			(66	)		(1,157	)		(6	)		(6	)		901			(164	)
Total increase (decrease) in net assets		—		—		515			(2,111	)		563			4,265			838			(116	)		(153	)		19			1,455			410
Net assets at beginning of year		—		—		83,903			86,014			20,053			15,788			8,756			8,872			1,221			1,202			5,379			4,969
Net assets at end of year	$	—		—		84,418			83,903			20,616			20,053			9,594			8,756			1,068			1,221			6,834			5,379

See accompanying notes to financial statements.

10

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Notes to Financial Statements

December 31, 2024 and 2023

(1) Organization and Significant Accounting Policies

(a) Organization

Southern Farm Bureau Life Variable Life Account (the Account), a unit investment trust registered under the Investment Company Act of 1940, as amended, was established by Southern Farm Bureau Life Insurance Company (the Company) in accordance with the rules and regulations of the Insurance Department of the State of Mississippi. The Account is a funding vehicle for individual adjustable premium variable life insurance policies issued by the Company. The Account commenced operations on August 1, 2002.

At the direction of eligible policy owners, the Account is currently available to invest in 23 investment subaccounts which, in turn, may own shares of the following open-end registered investment companies (the Funds):

Subaccount	Invests exclusively in shares of
	Fidelity Variable Insurance Products Funds:
Fidelity VIP Contrafund (Contrafund)	VIP Contrafund Portfolio (Initial Class)
Fidelity VIP Growth (Growth)	VIP Growth Portfolio (Initial Class)
Fidelity VIP High Income (High Income)	VIP High Income Portfolio (Initial Class)
Fidelity VIP Index 500 (Index 500)	VIP Index 500 Portfolio (Initial Class)
Fidelity VIP Mid Cap (Mid Cap)	VIP Mid Cap Portfolio (Initial Class)
Fidelity VIP Overseas (Overseas)	VIP Overseas Portfolio (Initial Class)
Fidelity VIP Equity-Income (Equity-Income)	VIP Equity-Income Portfolio (Initial Class)
Fidelity VIP Value Strategies (Value Strategies)	VIP Value Strategies Portfolio (Initial Class)
Fidelity VIP Dynamic Capital Appreciation (Dynamic Capital)	VIP Dynamic Capital Appreciation Portfolio (Initial Class)
Fidelity VIP Investment Grade Bond (Investment Grade Bond)	VIP Investment Grade Bond Portfolio (Initial Class)
Fidelity VIP Disciplined Small Cap (Disciplined Small Cap)	VIP Disciplined Small Cap Portfolio (Initial Class)
Fidelity VIP Government Money Market (Money Market)	VIP Government Money Market Portfolio (Initial Class)
	T. Rowe Price Equity Series, Inc.:
T. Rowe Price Equity Income (Equity Income)	Equity Income Portfolio
T. Rowe Price Mid-Cap Growth (Mid-Cap Growth)	Mid-Cap Growth Portfolio
T. Rowe Price Moderate Allocation Portfolio	Moderate Allocation Portfolio
(Personal Strategy Balanced)
T. Rowe Price Blue Chip Growth (Blue Chip)	Blue Chip Growth Portfolio
	T. Rowe Price Fixed Income Series, Inc.:
T. Rowe Price Limited-Term Bond (Limited-Term Bond)	Limited-Term Bond Portfolio
	Franklin Templeton Variable Insurance Products Trust:
Franklin Income VIP (Income Securities)	Franklin Income VIP Fund (Class 1)
Franklin Small Cap Value VIP (Small Cap Value)	Franklin Small Cap Value VIP Fund (Class 1)
Franklin Small-Mid Cap Growth VIP (Small-Mid Cap)	Franklin Small-Mid Cap Growth VIP Fund (Class 1)
Franklin Mutual Shares VIP (Mutual Shares)	Franklin Mutual Shares VIP Fund (Class 1)
Templeton Global Bond VIP (Global Income)	Templeton Global Bond VIP Fund (Class 1)
Franklin Rising Dividends VIP (Rising Dividends)	Franklin Rising Dividends VIP Fund (Class 1)

(Continued)

11

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Notes to Financial Statements

December 31, 2024 and 2023

Under applicable insurance law, the assets and liabilities of the Account are clearly identifed and separate from the Company’s other assets and liabilities. The portion of the Account’s assets applicable to the variable life insurance policies is not chargeable with liabilities arising out of any business the Company may conduct.

Eligible contract owners may also allocate funds to the Declared Interest Option (DIO) account, which is held and administered by the Company. The DIO account is funded by the general account of the Company and pays interest at declared rates guaranteed for each contract year.

(b) Investments

Investments in shares of the Funds are stated at fair value, which is the closing net asset value per share as determined by the respective Fund. The first-in, first-out cost basis has been used in determining the net realized gain or loss from investment transactions and unrealized appreciation or depreciation of investments. Investment transactions are accounted for on the trade date.

Dividends and realized capital gain distributions are taken into income on an accrual basis as of the ex-dividend date and are automatically reinvested in shares of the respective Fund on the payable date.

(c) Use of Estimates in the Preparation of Financial Statements

The preparation of the Account’s financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported and disclosed. These estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed in the financial statements.

(d) Fair Value Measurements

Investments in the Funds are stated at the closing net asset value per share on December 31, 2024, which approximates fair value. The difference between cost and net asset value is reflected as unrealized appreciation or depreciation of investments. The Account applies Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 820, Fair Value Measurement (Topic 820). Topic 820 defines fair value as the price that the Account would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also establishes a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. The inputs are summarized into three broad categories. Level 1 includes valuations based on quoted prices of identical securities in active markets. Level 2 includes valuations for which all significant inputs are observable, either directly or indirectly. Direct observable inputs include closing prices of similar securities in active markets or closing prices for identical or similar securities in nonactive markets. Indirect observable inputs include factors such as interest rates, yield curves, prepayment speeds, and credit risks. Level 3 includes valuations based on inputs that are unobservable and significant to the fair value measurement including the reporting entity’s own assumptions in determining the fair value of the investment.

(Continued)

12

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Notes to Financial Statements

December 31, 2024 and 2023

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. As of December 31, 2024, the Account’s investments in the Funds are valued within the above fair value hierarchy as Level 2. Net asset value is quoted by the Funds as derived by the fair value of the Funds’ underlying investments. The Funds are not considered Level 1 as they are not traded in the open market; rather the Account sells and redeems shares at net asset value with the Funds. The characterization of the underlying securities held by the Funds in accordance with Topic 820 differs from the characterization of an investment in the Fund.

(e) Segment Reporting

The Separate Account has identified David Hurt, Executive Vice-President and Chief Executive Officer of the Company, as the chief operating decision maker (“CODM”). The Separate Account is comprised of multiple subaccounts, each which constitute an operating segment. The significant performance measures in the form of the Subaccounts (e.g. total return ratio, investment income ratio, and Statement of Net Changes, etc.), are used by the CODM to make operational decisions of the Separate Account. Segment assets are reflected on the accompanying statement of assets and liabilities as “total assets” and significant segment expenses are listed on the accompanying statement of operations.

(f) Subsequent Events

The Account has evaluated subsequent events through April 24, 2025, the date the financial statements were issued.

(2) Expense Charges

The Account pays the Company certain amounts relating to the distribution and administration of the policies funded by the Account and as reimbursement for certain mortality and other risks assumed by the Company. The following summarizes those amounts.

Premium Expense Charge: The Company deducts a premium expense charge from each premium payment for each policy year to compensate itself for policy-related distribution expenses. The remaining amount (the net premium) is credited to the Accumulated Value according to the allocation instructions. For policies issued prior to May 1, 2008, the charge is equal to 10% of premiums up to the basic annual premium and 3% in excess of the basic annual premium. For policies issued on or after May 1, 2008, the charge is 10% of the target premium and 3% in excess of the target premium.

Monthly Deduction: The Company deducts a monthly deduction from the Accumulated Value on the Policy Date and on each Monthly Deduction Day. The Company will make deductions from each subaccount and the DIO account on a pro-rata basis. Because portions of the monthly deduction (such as the cost of insurance) can vary from month-to-month, the monthly deduction will also vary.

The monthly deduction has three components:

1. a cost of insurance charge

2. a monthly policy expense equal to $6 for policies issued prior to May 1, 2008, $10 for the first 5 Policy Years and $6 thereafter for policies issued on or after May 1, 2008

3. charges for any riders

(Continued)

13

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Notes to Financial Statements

December 31, 2024 and 2023

Mortality and Expense Risk Charge: The Company deducts a daily charge from each subaccount (not the DIO account) to compensate itself for certain mortality and expense risks it assumes. This charge is incorporated in the calculation of the unit value and is equal to:

● The assets in each subaccount, multiplied by

● 0.0028618%, which is the daily portion of the annual mortality and expense risk charge rate of 1.05% during all policy years.

Surrender Charges: If the policyholder fully surrenders the Policy (or it lapses) during the first 10 Policy Years, the Company deducts surrender charges from the Accumulated Value. The Company will make the deductions from each subaccount and the DIO account on a pro-rata basis. The surrender charge begins at 50% of the basic annual premium on policies issued prior to May 1, 2008 or 50% of the surrender charge base on policies issued on or after May 1, 2008 in the 1st year, and declines 5% each year until the 11th year at which time the surrender charge will be 0%. Additional 10-year surrender charges are associated with certain increases in death benefit (Specified Amount) as selected by the policyholder in accordance with the policy terms.

Withdrawal Charges: For each withdrawal, the Company will make a deduction from each subaccount and the DIO account on a pro-rate basis a fee equal to the lesser of $25 or 2% of the amount withdrawn.

Transfer Charge: The Company may currently charge $25 in the form of redemption units for the 13th and each additional transfer among the subaccounts and the DIO account during a policy year.

(3) Federal Income Taxes

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. Based on this, no charge is being made currently to the Account for federal income taxes. The Company reviews periodically the status of this policy in the event of changes in the tax law. A charge may be made in future years for any federal income taxes that would be attributable to the contracts.

The Account applies FASB ASC Topic 740, Income Taxes (Topic 740). Topic 740 establishes financial accounting and disclosure requirements for recognition and measurement of tax positions taken or expected to be taken on an income tax return. With limited exception, the Account is no longer subject to

U.S. federal, state, and local audits by tax authorities for 2020 and earlier tax years.

There are no uncertain tax positions impacting the Account which rise to the level of more likely than not.

(Continued)

14

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Notes to Financial Statements

December 31, 2024 and 2023

(4) Purchases and Sales of Investment Securities

The aggregate cost of investment securities purchased and proceeds from investment securities sold by the subaccounts were as follows during the year ended December 31, 2024:

	Cost of		Proceeds
Subaccount	purchases		from sales
Contrafund	$	72,958		30,758
Growth		97,394		30,068
High Income		2,641		618
Index 500		5,931		7,902
Mid Cap		83,896		32,958
Overseas		27,285		25,345
Equity-Income		7,846		9,277
Value Strategies		3,877		322
Dynamic Capital		900		3,232
Investment Grade Bond		4,556		4,931
Disciplined Small Cap		482		1,425
Money Market		7,130		3,414
Equity Income		41,426		15,959
Mid-Cap Growth		6,714		2,777
Personal Strategy Balanced		18,568		12,980
Blue Chip		7,971		9,379
Limited-Term Bond		11,485		6,466
Income Securities		—		—
Small Cap Value		3,597		9,359
Small-Mid Cap		200		1,789
Mutual Shares		396		164
Global Income		—		18
Rising Dividends		1,255		66

(Continued)

15

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Notes to Financial Statements

December 31, 2024 and 2023

(5) Changes from Units Outstanding

Transactions in units of each subaccount were as follows for the years ended December 31, 2024 and 2023:

	2024							2023
					Net							Net
					increase							increase
Subaccount	Purchased		Redeemed		(decrease)			Purchased		Redeemed		(decrease)
Contrafund		214		461		(247	)		336		666		(330	)
Growth		107		348		(241	)		160		267		(107	)
High Income		53		35		18			60		62		(2	)
Index 500		107		141		(34	)		144		216		(72	)
Mid Cap		439		818		(379	)		578		1,130		(552	)
Overseas		411		812		(401	)		515		1,037		(522	)
Equity-Income		100		385		(285	)		140		803		(663	)
Value Strategies		7		5		2			8		6		2
Dynamic Capital		2		66		(64	)		3		4		(1	)
Investment Grade Bond		269		398		(129	)		315		743		(428	)
Disciplined Small Cap		19		50		(31	)		27		74		(47	)
Money Market		1,146		1,015		131			844		854		(10	)
Equity Income		389		496		(107	)		493		1,113		(620	)
Mid-Cap Growth		23		34		(11	)		27		42		(15	)
Personal Strategy Balanced		396		540		(144	)		539		1,015		(476	)
Blue Chip		61		207		(146	)		99		614		(515	)
Limited-Term Bond		1,056		1,020		36			1,045		1,373		(328	)
Income Securities		—		—		—			—		—		—
Small Cap Value		89		350		(261	)		118		534		(416	)
Small-Mid Cap		9		49		(40	)		12		6		6
Mutual Shares		—		3		(3	)		3		64		(61	)
Global Income		—		1		(1	)		—		—		—
Rising Dividends		30		7		23			36		40		(4	)

(Continued)

16

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Notes to Financial Statements

December 31, 2024 and 2023

(6) Financial Highlights

The Account has presented the following summary of units outstanding, unit values, net assets, investment income ratios, ratios of expenses to average net assets, and total return ratios for the years or periods ended December 31, 2024, 2023, 2022, 2021 and 2020:

										Ratio of
	As of December 31						Investment			expenses to
			Unit		Net		income			average			Total
	Units		value (1)		assets		ratio (2)			net assets (3)			return (4)
Contrafund:
2024		6,200	$	98.09	$	608,096		0.19	%		1.05	%		32.39	%
2023		6,447		74.09		477,617		0.50			1.05			32.07
2022		6,777		56.10		380,188		0.51			1.05			(27.08	)
2021		6,890		76.93		530,012		0.06			1.05			26.51
2020		7,045		60.81		428,384		0.25			1.05			29.21
Growth:
2024		4,139		108.73		450,055		0.00			1.05			29.03
2023		4,380		84.27		369,101		0.13			1.05			34.83
2022		4,487		62.50		280,422		0.61			1.05			(25.24	)
2021		4,549		83.60		380,321		0.00			1.05			21.93
2020		4,593		68.56		314,881		0.08			1.05			42.40
High Income:
2024		908		32.92		29,900		6.16			1.05			7.83
2023		890		30.53		27,175		5.71			1.05			9.33
2022		892		27.92		24,898		4.92			1.05			(12.29	)
2021		948		31.83		30,164		5.38			1.05			3.33
2020		952		30.81		29,326		5.07			1.05			1.68
Index 500:
2024		2,769		85.90		237,859		1.29			1.05			23.59
2023		2,803		69.50		194,768		1.48			1.05			24.89
2022		2,875		55.65		159,996		1.40			1.05			(19.06	)
2021		3,185		68.75		218,998		1.25			1.05			27.24
2020		3,395		54.03		183,427		1.63			1.05			17.01
Mid Cap:
2024		9,980		59.81		596,866		0.55			1.05			16.27
2023		10,359		51.44		532,904		0.61			1.05			13.88
2022		10,911		45.17		492,865		0.50			1.05			(15.63	)
2021		11,187		53.54		598,934		0.62			1.05			24.30
2020		11,464		43.07		493,773		0.64			1.05			16.96
Overseas:
2024		8,129		40.40		328,422		1.65			1.05			3.96
2023		8,530		38.87		331,509		1.05			1.05			19.26
2022		9,052		32.59		294,989		1.08			1.05			(25.27	)
2021		9,112		43.61		397,370		0.53			1.05			18.46
2020		9,360		36.81		344,585		0.43			1.05			14.41

(Continued)

17

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Notes to Financial Statements

December 31, 2024 and 2023

											Ratio of
		As of December 31						Investment			expenses to
				Unit		Net		income			average			Total
		Units		value (1)		assets		ratio (2)			net assets (3)			return (4)
Equity-Income:
2024			3,116	$	29.62	$	92,301		1.81	%		1.05	%		14.14	%
2023			3,401		25.95		88,274		1.93			1.05			9.50
2022			4,064		23.70		96,312		1.94			1.05			(5.94	)
2021			4,004		25.20		100,903		1.94			1.05			23.60
2020			3,965		20.39		80,841		1.84			1.05			5.59
Value Strategies:
2024			709		35.27		24,997		1.05			1.05			8.26
2023			707		32.58		23,037		1.21			1.05			19.60
2022			705		27.24		19,201		1.13			1.05			(7.99	)
2021			702		29.61		20,796		1.57			1.05			32.21
2020			699		22.39		15,657		1.37			1.05			7.13
Dynamic Capital:
2024			342		53.24		18,214		0.23			1.05			24.21
2023			406		42.86		17,412		0.36			1.05			27.73
2022			407		33.56		13,654		0.31			1.05			(21.69	)
2021			408		42.85		17,463		0.41			1.05			23.33
2020			408		34.74		14,183		0.21			1.05			32.22
Investment Grade Bond:
2024			4,111		14.40		59,205		3.54			1.05			0.73
2023			4,240		14.30		60,623		2.61			1.05			5.10
2022			4,668		13.61		63,511		2.32			1.05			(13.86	)
2021			4,462		15.79		70,470		2.06			1.05			(1.64	)
2020			4,375		16.06		70,248		2.19			1.05			8.26
Disciplined Small Cap:
2024			47		35.62		1,678		1.17			1.05			15.65
2023			78		30.80		2,406		1.02			1.05			19.71
2022			125		25.73		3,217		0.89			1.05			(19.08	)
2021			104		31.79		3,310		0.41			1.05			19.40
2020			100		26.63		2,671		0.72			1.05			17.22
Money Market
2024			5,596		10.87		60,850		4.98			1.05			4.01
2023			5,465		10.45		57,133		4.79			1.05			3.81
2022	*		5,475		10.07		55,146		2.08			1.05			0.72
Equity Income:
2024			8,077		52.70		425,674		1.83			1.05			10.53
2023			8,184		47.68		390,233		2.08			1.05			8.41
2022			8,804		43.98		387,220		1.88			1.05			(4.34	)
2021			8,950		45.98		411,518		1.57			1.05			24.25
2020			9,122		37.01		337,568		2.33			1.05			0.13

*April 29, 2022 to December 31, 2022

(Continued)

18

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Notes to Financial Statements

December 31, 2024 and 2023

											Ratio of
		As of December 31						Investment			expenses to
				Unit		Net		income			average			Total
		Units		value (1)		assets		ratio (2)			net assets (3)			return (4)
Mid-Cap Growth:
2024			610	$	104.95	$	64,008		0.00	%		1.05	%		8.18	%
2023			621		97.01		60,293		0.00			1.05			18.72
2022			636		81.72		51,984		0.00			1.05			(23.38	)
2021			647		106.66		69,053		0.00			1.05			13.66
2020			656		93.84		61,526		0.00			1.05			22.52
Personal Strategy Balanced:
2024			6,774		41.40		280,422		2.30			1.05			8.91
2023			6,918		38.01		262,953		2.28			1.05			14.15
2022			7,394		33.30		246,220		1.57			1.05			(19.16	)
2021			7,466		41.19		307,533		0.98			1.05			8.92
2020			7,665		37.82		289,878		1.38			1.05			13.35
Blue Chip:
2024			2,819		62.27		175,571		0.00			1.05			34.10
2023			2,965		46.44		137,688		0.00			1.05			47.74
2022			3,480		31.43		109,370		0.00			1.05			(39.14	)
2021			3,438		51.65		177,560		0.00			1.05			16.40
2020			3,457		44.37		153,391		0.00			1.05			32.88
Limited-Term Bond:
2024			10,850		13.48		146,314		4.21			1.05			3.87
2023			10,814		12.98		140,387		3.32			1.05			3.85
2022			11,142		12.50		139,282		1.94			1.05			(5.51	)
2021			11,374		13.23		150,475		1.33			1.05			(0.91	)
2020			11,014		13.35		147,058		1.97			1.05			3.62
Prime Reserve:
2022	*		—		—		—		0.05			1.05			(1.02	)
2021			6,031		10.06		60,672		0.01			1.05			(1.03	)
2020			6,179		10.17		62,813		0.26			1.05			(0.79	)
Income Securities:
2024			—		21.37		—		0.00			1.05			6.34
2023			—		20.10		—		0.00			1.05			7.74
2022			—		18.65		—		0.00			1.05			(6.22	)
2021			—		19.89		—		0.00			1.05			15.79
2020			—		17.18		—		0.00			1.05			(0.08	)
Small Cap Value:
2024			2,574		32.80		84,418		1.08			1.05			10.84
2023			2,835		29.59		83,903		0.72			1.05			11.85
2022			3,251		26.46		86,014		1.23			1.05			(10.75	)
2021			3,204		29.65		94,977		1.13			1.05			24.36
2020			3,152		23.84		75,140		1.70			1.05			4.31

*Liquidated on May 6, 2022

(Continued)

19

SOUTHERN FARM BUREAU LIFE VARIABLE LIFE ACCOUNT

Notes to Financial Statements

December 31, 2024 and 2023

										Ratio of
	As of December 31						Investment			expenses to
			Unit		Net		income			average			Total
	Units		value (1)		assets		ratio (2)			net assets (3)			return (4)
Small-Mid Cap:
2024		551	$	37.38	$	20,616		0.00	%		1.05	%		10.15	%
2023		591		33.94		20,053		0.00			1.05			25.81
2022		585		26.98		15,788		0.00			1.05			(34.21	)
2021		580		41.00		23,763		0.00			1.05			9.11
2020		583		37.58		21,910		0.00			1.05			53.91
Mutual Shares:
2024		431		22.27		9,594		2.20			1.05			10.33
2023		434		20.18		8,756		2.16			1.05			12.55
2022		495		17.93		8,872		2.15			1.05			(8.12	)
2021		495		19.52		9,667		3.08			1.05			18.28
2020		496		16.50		8,180		3.11			1.05			(5.84	)
Global Income:
2024		92		11.56		1,068		0.00			1.05			(12.06	)
2023		93		13.14		1,221		0.00			1.05			2.12
2022		93		12.87		1,202		0.00			1.05			(5.83	)
2021		87		13.67		1,186		0.00			1.05			(5.62	)
2020		81		14.48		1,169		8.50			1.05			(6.06	)
Rising Dividends:
2024		167		41.02		6,834		1.15			1.05			9.88
2023		144		37.33		5,379		1.11			1.05			11.23
2022		148		33.56		4,969		1.03			1.05			(11.27	)
2021		119		37.82		4,488		1.04			1.05			25.78
2020		116		30.07		3,482		1.46			1.05			15.02

(1) The accumulation unit value represents the ending unit value of each open and available subaccount whether or not there is activity at the end of the period in the underlying fund.

(2) These ratios represent the dividends, excluding distributions of capital gains, received by the subaccount from the underlying fund, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that result in direct reductions in the unit values. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest. Ratios presented as 0.00 may earn investment income but are recorded as such due to rounding.

(3) These ratios represent the annualized policy expenses of the separate account, consisting primarily of mortality and expense risk charges, for the period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to policyholder accounts through the redemption of units and expenses of the underlying fund are excluded.

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

20