REVISION TO PRIOR YEAR INFORMATION

Revisions to 2015 Consolidated Financial Statements

The Company identified errors in the calculation of reserves for certain individual life products that impacted several line items within our previously issued consolidated financial statements. Prior period amounts have been revised in the financial statements and related disclosures to correct these errors. Management evaluated these adjustments and concluded they were not material to any previously reported quarterly or annual financial statements.

Management assessed the materiality of the misstatements described above on prior period financial statements in accordance with SEC Staff Accounting Bulletin ("SAB") No. 99, Materiality, codified in ASC 250-10, Accounting Changes and Error Corrections ("ASC 250"), and concluded that these misstatements were not material to any prior annual or interim periods. Accordingly, in accordance with ASC 250 (SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), the consolidated financial statements as of and for the three and nine months ended September 30, 2015 and also for the year ended December 31, 2015, which are presented herein, have been revised. Similarly, impacted prior periods presented within the Annual Report on Form 10-K for the year ended December 31, 2016 will be revised.

The following are selected line items from the consolidated financial statements illustrating the effects of these revisions:

Consolidated Statements of Financial Position



	December 31, 2015
	As Previously Reported		Revision			As Revised
	(in thousands)
ASSETS
Deferred policy acquisition costs	$	5,111,373	$	18,558		$	5,129,931
Reinsurance recoverables	22,546,361		145,130			22,691,491
TOTAL ASSETS	148,643,945		163,688			148,807,633
LIABILITIES AND EQUITY
LIABILITIES
Future policy benefits	$	15,031,390	$	167,365		$	15,198,755
Policyholders’ account balances	17,164,705		40,119			17,204,824
Income taxes	154,043		(15,404		)	138,639
TOTAL LIABILITIES	144,133,128		192,080			144,325,208
EQUITY
Retained earnings	3,663,539		(28,392		)	3,635,147
TOTAL EQUITY	4,510,817		(28,392		)	4,482,425
TOTAL LIABILITIES AND EQUITY	148,643,945		163,688			148,807,633

Consolidated Statements of Operations and Comprehensive Income (Loss)



	Three Months Ended September 30, 2015									Nine Months Ended September 30, 2015
	As Previously Reported			Revision			As Revised			As Previously Reported		Revision			As Revised
	(in thousands)
REVENUES
Policy charges and fee income	$	547,404		$	(1,060	)	$	546,344		$	1,618,202	$	(2,225	)	$	1,615,977
TOTAL REVENUES	763,484			(1,060		)	762,424			2,199,958		(2,225		)	2,197,733
BENEFITS AND EXPENSES
Policyholders' benefits	112,448			2,738			115,186			228,115		5,835			233,950
Amortization of deferred policy acquisition costs	408,510			(1,212		)	407,298			697,570		(2,544		)	695,026
TOTAL BENEFITS AND EXPENSES	919,188			1,526			920,714			2,021,951		3,291			2,025,242
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES	(155,704		)	(2,586		)	(158,290		)	178,007		(5,516		)	172,491
Income tax expense (benefit)	(21,601		)	(183		)	(21,784		)	13,451		(770		)	12,681
NET INCOME (LOSS)	(134,103		)	(2,403		)	(136,506		)	164,556		(4,746		)	159,810
COMPREHENSIVE INCOME (LOSS)	(119,879		)	(2,403		)	(122,282		)	95,189		(4,746		)	90,443

Consolidated Statements of Equity



	Retained Earnings							Total Equity
	As Previously Reported		Revision			As Revised		As Previously Reported		Revision			As Revised
	(in thousands)
Balance, December 31, 2015	$	3,663,539	$	(28,392	)	$	3,635,147	$	4,510,817	$	(28,392	)	$	4,482,425



	Retained Earnings							Total Equity
	As Previously Reported		Revision			As Revised		As Previously Reported		Revision			As Revised
	(in thousands)
Balance, December 31, 2014	$	3,580,641	$	(23,497	)	$	3,557,144	$	4,553,985	$	(23,497	)	$	4,530,488
Comprehensive income (loss):
Net income (loss)	164,556		(4,746		)	159,810		164,556		(4,746		)	159,810
Total comprehensive income (loss)								95,189		(4,746		)	90,443
Balance, September 30, 2015	3,515,197		(28,243		)	3,486,954		4,406,994		(28,243		)	4,378,751

Consolidated Statements of Cash Flows



	Nine Months Ended September 30, 2015
	As Previously Reported			Revision			As Revised
	(in thousands)
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Net income (loss)	$	164,556		$	(4,746	)	$	159,810
Future policy benefits	1,107,838			22,551			1,130,389
Reinsurance recoverables	(1,060,191		)	(19,988		)	(1,080,179		)
Deferred policy acquisition costs	248,479			(2,543		)	245,936
Income taxes	(57,552		)	(770		)	(58,322		)
Cash flows from (used in) operating activities	930,246			(5,496		)	924,750
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Policyholders’ account deposits	2,807,379			5,496			2,812,875
Cash flows from (used in) financing activities	101,796			5,496			107,292