REVISION TO PRIOR YEAR INFORMATION

Revisions to 2018, 2017 and 2016 Consolidated Financial Statements

In 2018, the Company identified an error in the calculation of reserves for certain individual life products that impacted several line items within previously issued consolidated financial statements. Prior period amounts have been revised in the financial statements and related disclosures to correct this error as shown below. 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 misstatement 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 years ended December 31, 2017 and 2016, which are presented herein, have been revised. Similarly, impacted prior periods presented within the Quarterly Report on Form 10-Q for the period ended March 31, 2019 will be revised, as presented below.

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

Consolidated Statements of Financial Position



	Year Ended December 31, 2017
	As Previously Reported		Revision			As Revised
	(in thousands)
ASSETS
Reinsurance recoverables	$	32,555,500	$	(34,236	)	$	32,521,264
TOTAL ASSETS	$	172,459,576	$	(34,236	)	$	172,425,340
LIABILITIES AND EQUITY
LIABILITIES
Future policy benefits	$	18,593,130	$	(31,580	)	$	18,561,550
Income taxes	32,440		3,883			36,323
Other liabilities	1,060,123		(21,151		)	1,038,972
TOTAL LIABILITIES	169,638,940		(48,848		)	169,590,092
EQUITY
Retained earnings	$	1,511,698	$	14,612		$	1,526,310
TOTAL EQUITY	2,820,636		14,612			2,835,248
TOTAL LIABILITIES AND EQUITY	$	172,459,576	$	(34,236	)	$	172,425,340

Consolidated Statements of Operations and Comprehensive Income (Loss)



	Year Ended December 31, 2017									Year Ended December 31, 2016
	As Previously Reported			Revision			As Revised			As Previously Reported			Revision			As Revised
	(in thousands)
REVENUES
Policy charges and fee income	$	254,542		$	21,151		$	275,693		$	787,195		$	0		$	787,195
TOTAL REVENUES	666,814			21,151			687,965			1,211,202			0			1,211,202
BENEFITS AND EXPENSES
Policyholders' benefits	(38,380		)	19,964			(18,416		)	(260,200		)	(15,365		)	(275,565		)
TOTAL BENEFITS AND EXPENSES	496,551			19,964			516,515			889,854			(15,365		)	874,489
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	170,263			1,187			171,450			321,348			15,365			336,713
Income tax expense (benefit)	(154,654		)	(2,174		)	(156,828		)	(73,869		)	5,377			(68,492		)
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	324,917			3,361			328,278			395,217			9,988			405,205
NET INCOME (LOSS)	$	324,432		$	3,361		$	327,793		$	395,217		$	9,988		$	405,205
COMPREHENSIVE INCOME (LOSS)	$	418,803		$	3,361		$	422,164		$	401,387		$	9,988		$	411,375



	(UNAUDITED)
	Three Months Ended March 31, 2018
	As Previously Reported			Revision			As Revised
	(in thousands)
REVENUES
Policy charges and fee income	$	125,896		$	3,259		$	129,155
TOTAL REVENUES	185,453			3,259			188,712
BENEFITS AND EXPENSES
Policyholders' benefits	48,955			2,781			51,736
Amortization of deferred policy acquisition costs	26,604			(459		)	26,145
TOTAL BENEFITS AND EXPENSES	177,147			2,322			179,469
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	8,306			937			9,243
Income tax expense (benefit)	(2,448		)	(251		)	(2,699		)
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	10,754			1,188			11,942
NET INCOME (LOSS)	$	10,116		$	1,188		$	11,304
COMPREHENSIVE INCOME (LOSS)	$	(105,158	)	$	1,188		$	(103,970	)

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	$	3,635,147	$	1,263	$	3,636,410	$	4,482,425	$	1,263	$	4,483,688
Comprehensive income (loss):
Net income (loss)	395,217		9,988		405,205		395,217		9,988		405,205
Total comprehensive income (loss)							401,387		9,988		411,375
Balance, December 31, 2016	$	1,437,266	$	11,251	$	1,448,517	$	2,496,803	$	11,251	$	2,508,054
Comprehensive income (loss):
Net income (loss)	324,432		3,361		327,793		324,432		3,361		327,793
Total comprehensive income (loss)							418,803		3,361		422,164
Balance, December 31, 2017	$	1,511,698	$	14,612	$	1,526,310	$	2,820,636	$	14,612	$	2,835,248



	(UNAUDITED)
	Retained Earnings						Total Equity
	As Previously Reported		Revision		As Revised		As Previously Reported			Revision		As Revised
	(in thousands)
Balance, December 31, 2017	$	1,511,698	$	14,612	$	1,526,310	$	2,820,636		$	14,612	$	2,835,248
Comprehensive income (loss):
Net income (loss)	10,116		1,188		11,304		10,116			1,188		11,304
Total comprehensive income (loss)							(105,158		)	1,188		(103,970		)
Balance, March 31, 2018	$	1,499,351	$	15,798	$	1,515,149	$	2,727,375		$	15,798	$	2,743,173

Consolidated Statements of Cash Flows



	December 31, 2017									December 31, 2016
	As Previously Reported			Revision			As Revised			As Previously Reported			Revision			As Revised
	(in thousands)
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Net income (loss)	$	324,432		$	3,361		$	327,793		$	395,217		$	9,988		$	405,205
Future policy benefits	1,934,713			(14,273		)	1,920,440			1,816,665			(15,366		)	1,801,299
Reinsurance recoverables	(2,080,452		)	34,237			(2,046,215		)	(1,764,242		)	0			(1,764,242		)
Income taxes	(74,156		)	(2,174		)	(76,330		)	(45,147		)	5,378			(39,769		)
Other, net	47,594			(21,151		)	26,443			(110,850		)	0			(110,850		)
Cash flows from (used in) operating activities	103,832			0			103,832			(6,919		)	0			(6,919		)



	(UNAUDITED)
	March 31, 2018
	As Previously Reported			Revision			As Revised
	(in thousands)
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Net income (loss)	$	10,116		$	1,188		$	11,304
Policy charges and fee income	(24,173		)	476			(23,697		)
Future policy benefits	511,380			(2,968		)	508,412
Reinsurance recoverables	(430,215		)	5,748			(424,467		)
Deferred policy acquisition costs	(45,184		)	(458		)	(45,642		)
Income taxes	(2,651		)	(251		)	(2,902		)
Other, net	(93,619		)	(3,735		)	(97,354		)
Cash flows from (used in) operating activities	(7,769		)	0			(7,769		)