Integrity VAROOM II 2019 Registration Statement Combined Document

485BPOS 1 combointvrm2ii2019regdoc.htm 485BPOS Integrity VAROOM II 2019 Registration Statement Combined Document

Integrity VAROOM II

As filed with the Securities and Exchange Commission on April 26, 2019

Registration Nos. 333-178438 and 811-04844

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-4

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

Pre-Effective Amendment Number:

Post-Effective Amendment Number: 9 [x ]

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940

Amendment Number: 136 [ x]

(Check appropriate box or boxes)

Separate Account I of Integrity Life Insurance Company

(Exact Name of Registrant)

Integrity Life Insurance Company

(Name of Depositor)

400 Broadway, Cincinnati, Ohio 45202

(Address of Depositor's Principal Executive Offices) (Zip Code)

(513) 629-1114

(Depositor's Telephone Number, including Area Code)

The Western and Southern Life Insurance Company

(Name of Guarantor)

400 Broadway, Cincinnati, Ohio 45202

(Address of Guarantor's Principal Executive Offices) (Zip Code)

(513) 629-1114

(Guarantor's Telephone Number, including Area Code)

Bryan J. Kreyling, Esq.

Associate Counsel

Western & Southern Financial Group, Inc.

400 Broadway, Cincinnati, Ohio 45202

(Name and Address of Agent for Service)

Approximate Date of Proposed Public Offering: Continuous

It is proposed that this filing will become effective (check appropriate box)



		immediately upon filing pursuant to paragraph (b) of Rule 485
	x	on May 1, 2019 pursuant to paragraph (b) of Rule 485
		60 days after filing pursuant to paragraph (a)(1) of Rule 485
		on (date) pursuant to paragraph (a)(1) of Rule 485
		75 days after filing pursuant to paragraph (a)(2) of Rule 485
		on (date) pursuant to paragraph (a)(2) of Rule 485

If appropriate, check the following box:



		This post-eff amendment designates a new effective date for a previously filed post-eff amendment.

Title of Securities Being Registered: VAROOM^®II Flexible Premium Variable Annuity

VAROOM^®II Variable Annuity

May 1, 2019

Integrity Life Insurance Company

Separate Account I of Integrity Life Insurance Company

This prospectus describes a flexible premium deferred variable annuity contract. This prospectus contains information about Separate Account I of Integrity Life Insurance Company (Separate Account I) and the contract that you should know before investing. You should read this prospectus and any supplements, and retain them for future reference.

The Securities and Exchange Commission (SEC) has not approved or disapproved these securities or determined that this prospectus is adequate. Any representation to the contrary is a criminal offense.

A registration statement relating to this contract, which includes a Statement of Additional Information (SAI) dated May 1, 2019, material incorporated by reference, and other information about Separate Account I and Integrity Life Insurance Company, has been filed with the SEC (file numbers 811-04844 and 333-178438). The SAI is incorporated by reference into this prospectus. A free copy of the SAI is available by sending in the form on the last page of this prospectus, or by writing or calling our Administrative Office listed in the Glossary. The SEC maintains a website at www.sec.gov that contains the SAI and other information that is filed electronically with the SEC. The table of contents for the SAI is at the end of Part 9 of this prospectus.

Beginning on January 1, 2021, as permitted by regulations adopted by the SEC, paper copies of the annual and semi-annual shareholder reports for the Funds available under your variable annuity contract will no longer be sent by mail unless you specifically request paper copies of the reports from Integrity Life Insurance Company or your financial intermediary. Instead, the reports will be made available on our website at www.westernsouthern.com, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive all future reports in paper and free of charge. You can contact us at 1-800-325-8583 or contact your financial intermediary if you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all Funds available under your variable annuity contract.

The contract must be issued as a traditional IRA, Roth IRA, or SEP IRA (collectively referred to as IRAs). This contract does not provide the tax advantages typically provided by an annuity contract. The tax advantages of this contract exist solely through its qualification as an IRA.

Except for the Fidelity VIP Government Money Market Portfolio, the Funds available for investment under this contract are also available for direct purchase by the general public.

Two of the reasons Exchange-Traded Funds (ETFs) are attractive to direct purchasers are tax efficiency and cost-effectiveness. Tax efficiency associated with ETFs will not be realized by purchasing this contract because this contract is an IRA. The ETFs in which the subaccounts invest are cost-effective, but that cost-effectiveness will be reduced by the expenses of this contract. These expenses include the administration expenses that are used, in part, to reimburse us for the cost and commissions associated with investing in the underlying ETFs.

If you purchase shares of these Funds directly from a broker-dealer, you will not pay separate account expenses, but may pay commissions. You will also not have access to an annuity benefit, a guaranteed Death Benefit and an optional guaranteed living benefit. Because of these additional separate account expenses, which affect your contract values and the returns on your investment, you should refer only to information about returns on the Subaccount Units available through this contract, and should not refer to information about returns on these Funds that may be available through other sources.

This annuity is not a deposit of a bank or other financial institution. It is not insured by the Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund or other federal entity. It is subject to investment risks, including possible loss of the principal amount invested.

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This prospectus does not constitute an offering in any jurisdiction where such offering may not lawfully be made. No person is authorized to make any representations in connection with this offering other than those contained in this prospectus.

You may invest your premiums in any of the Subaccounts listed below.

Equity Subaccounts

iShares^® Core S&P 500 ETF

iShares^® Core S&P Mid-Cap ETF

iShares^® Core S&P Small-Cap ETF

iShares^® S&P 500 Growth ETF

iShares^® S&P 500 Value ETF

Vanguard^® Dividend Appreciation Index Fund, ETF Shares

Vanguard^® Large-Cap Index Fund, ETF Shares

Vanguard^® Mega Cap Index Fund, ETF Shares

Fixed Income Subaccounts

Fidelity^® VIP Government Money Market Portfolio, Initial Class

iShares^® Core U.S. Aggregate Bond ETF

iShares^® iBoxx $ High Yield Corporate Bond ETF

iShares^® Intermediate-Term Corporate Bond ETF

iShares^® TIPS Bond ETF

Vanguard^® Intermediate-Term Corporate Bond Index Fund, ETF Shares

Vanguard^® Short-Term Bond Index Fund, ETF Shares

Vanguard^® Total Bond Market Index Fund, ETF Shares

International and Alternative Subaccounts

iShares^® International Treasury Bond ETF

Vanguard^® Developed Markets Index Fund, ETF Shares

Vanguard^® Emerging Markets Stock Index Fund, ETF Shares

Vanguard^® Real Estate Index Fund, ETF Shares

___________________________________________________________________________________

iShares^® and Blackrock^® are registered marks of BlackRock, Inc. and its affiliates (BlackRock). All other trademarks, service marks or registered trademarks are the property of their respective owners. BlackRock's only relationship to Integrity Life is the licensing of certain trademarks and trade names of BlackRock. Integrity Life's variable annuities are not sponsored, endorsed, sold or promoted by BlackRock. BlackRock makes no representations or warranties to the owners of Integrity Life's variable annuities or any member of the public regarding the advisability of investing in them. BlackRock has no obligation or liability in connection with the operation, marketing, sale or trading of Integrity Life's variable annuities.

Vanguard is a trademark of The Vanguard Group, Inc.

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TABLE OF CONTENTS



	Page V2I-
Glossary	5
Part 1 – Fees and Expense Tables and Summary of Contract	7
Fees and Expenses	7
Contract Owner Transaction Expenses	7
Separate Account Annual Expenses	7
Total Annual Fund Operating Expenses	8
Examples	9
Accumulation Unit Values	9
Summary of Contract	10
This Contract is an IRA	10
Parties to the Contract	10
Your Rights and Benefits	10
Investment Goals and Risks	11
Account Value and Surrender Value	11
Your Right to Revoke (Free Look Period)	12
Part 2 – Integrity Life and the Separate Account	12
Integrity Life Insurance Company	12
Separate Account I	12
Subaccounts	13
Distribution of Variable Annuity Contracts	13
ETF Custodian	13
Changes in How We Operate	13
Part 3 – Your Investment Options	14
The Fund Families and the Funds	14
Static Asset Allocation Models	18
The Fixed Account	19
Part 4 – Deductions and Charges	19
Separate Account Charges	19
Fund Expenses	20
Withdrawal Charge	20
Reduction or Elimination of the Withdrawal Charge	21
Commission Allowance and Additional Payments to Distributors	21
Optional Benefit Charges	21
Tax Reserve	22
State Premium Tax	22
Part 5 – Terms of Your Variable Annuity	22
Purchasing the Contract	22
Premium Payments	22
Units in Our Separate Account	23
How We Determine Unit Value	24
Allocations and Transfers	24
Detrimental Effect of Trading on Unit Values	25
Specific Notice Regarding the Use of this Annuity for Market Timing or Frequent Trading	25
Withdrawals	25
Free Withdrawal Amount	26
Timing of Payment of a Withdrawal or Surrender	26
Assignments	27
Death Benefit	27
Spousal Continuation	28
Selecting and Changing Your Beneficiary	28

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Filing Death Claims	29
Maturity Date and Annuity Option	29
Annuity Payments	30
How You Make Requests and Give Instructions	30
Abandoned or Unclaimed Property	30
Part 6 – Optional Benefits	30
Guaranteed Lifetime Withdrawal Benefit	30
Lifetime Payout Amount (LPA)	31
Nonguaranteed Withdrawal	32
Other Important Facts about Withdrawals	33
GLWB Rider Charge	33
GLWB Investment Strategies	34
Allocations and Transfers for the GLWB	35
Withdrawal Protection for Required Minimum Distributions	36
Continuation of the Spousal GLWB at Owner’s Death	36
Guaranteed Payment Phase	36
Cancellation and Termination of Rider	37
Additional Rules	37
Additional Rules that Apply to the Spousal GLWB Rider	37
Should You Purchase the GLWB Rider	38
Examples	38
Part 7 – Voting Rights	38
How Fund Shares Are Voted	38
How We Determine Your Voting Shares	38
Part 8 – Tax Aspects of the Contract	39
Tax Status of the Contract	39
Types of IRAs	39
Rollovers and Transfers	40
Early Distributions	40
Required Minimum Distributions (RMD)	41
Inherited IRAs	41
Federal and State Income Tax Withholding	42
Tax Status of the Company	42
Transfers Among Subaccounts	42
Seek Tax Advice	43
Part 9 – Additional Information	43
Systematic Withdrawal Program	43
Cyber Security	43
Anti-Money Laundering	44
Income Plus Withdrawal Program	44
Choices Plus Required Minimum Distribution (RMD) Program	44
Systematic Transfer Program	45
Customized Asset Rebalancing Program	45
Legal Proceedings	46
Table of Contents of Statement of Additional Information	46
Appendices	47
Appendix A – Financial Information for Separate Account I of Integrity Life	47
Appendix B – Withdrawal Charge Examples	55
Appendix C – Illustrations of Guaranteed Lifetime Withdrawal Benefit	57

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GLOSSARY

Account Value - the value of your contract, which consists of the value of your Investment Options added together.

Administrative Office - the address you are required to use to make requests and give instructions about your annuity contract.



Regular Mail:	Overnight Mail:
Integrity Life Insurance Company PO Box 5720 Cincinnati, Ohio 45201-5720	Integrity Life Insurance Company 400 Broadway, MS 74 Cincinnati, Ohio 45202-3341

Phone:
1-800-325-8583

Annuitant - the human being whose life is used to determine the Maturity Date of the contract and the amount of the Annuity Option.

Annuity Date - any date on or before the Maturity Date that you elect an Annuity Option.

Annuity Option - an arrangement under which income payments are made.

Business Day - any day that the New York Stock Exchange is open.

Contract Anniversary - occurs once annually on the same day as the Contract Date.

Contract Date - the date we issue you the contract; it is shown on the specification pages of your contract.

Contract Year - a year that starts on your Contract Date or any Contract Anniversary.

Death Benefit - benefit paid to the beneficiary on the Death Benefit Date.

Death Benefit Date - the date we receive an original certified death certificate and our death claim forms in Good Order, including the beneficiary's election of form of payment.

Exchange-Traded Funds (ETFs) - a type of investment fund that invests in a basket of securities or other assets and trades like a stock on an exchange.

Fixed Account - an Investment Option offering a fixed rate of return.

Free Withdrawal Amount - the amount you may withdraw in any Contract Year without paying a withdrawal charge.

Fund - an investment in which a Subaccount invests; all Funds in this annuity are ETFs, except the Fidelity VIP Government Money Market Portfolio.

General Account - the Company’s account that contains all of our assets other than those held in separate accounts.

Good Order - complete information we require to process your application, claim or any request received at our Administrative Office, the address of which is noted above in this Glossary.

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Guaranteed Lifetime Withdrawal Benefit (GLWB) - an optional benefit Rider that guarantees lifetime payments will be available for withdrawal.

GLWB Investment Strategies - investment strategies available for the GLWB Rider.

Investment Options - Subaccounts and the Fixed Account, collectively.

IRA - Individual Retirement Annuity under section 408(b), 408(k) or 408A of the Tax Code.

Maturity Date - the 100^th birthday of the Annuitant named on the Contract Date. The Maturity Date is the latest date you can either elect an Annuity Option or receive a lump sum payment.

Rider - a supplement to your contract that provides optional benefits at an additional cost.

Required Beginning Date - April 1^st of the year after the calendar year in which the owner reaches age 70½; this is the date when the owner must begin taking Required Minimum Distributions from a Traditional or SEP IRA.

Required Minimum Distribution (RMD) - annual withdrawal amount required under the Tax Code based on the prior calendar year-end fair market value of this contract only, as calculated by us.

Separate Account - Separate Account I of Integrity Life Insurance Company. Its assets are segregated from the General Account by Integrity Life and divided into Subaccounts.

Subaccounts - Investment Options available to you under the contract other than the Fixed Account. Each Subaccount is a division of the Separate Account and invests exclusively in a single Fund with the same name.

Surrender Value - your Account Value reduced by any withdrawal charge and premium tax.

Systematic Transfer Option (STO) - a Fixed Account that accepts new premiums, which must be transferred from the STO into Subaccounts within either a six-month or one-year period.

Tax Code - the Internal Revenue Code of 1986, as amended, or any corresponding provisions of subsequent United States tax laws, and applicable regulations of the Internal Revenue Service (IRS).

Unit - measure of your ownership interest in a Subaccount.

Unit Value - value of each Unit calculated on each Business Day.

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Part 1 – Fees and Expense Tables and Summary of Contract

Fees and Expenses

The following tables describe the fees and expenses that you will pay when buying, owning, withdrawing from and surrendering the contract.

The following table describes the maximum fees and expenses that you will pay at the time you buy the contract, withdraw from or surrender the contract, or transfer contract value among Subaccounts. State premium tax may also be deducted.¹

Contract Owner Transaction Expenses



Maximum Deferred Sales Load (withdrawal charge) as a percentage of premiums²	7%

The following table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including Total Annual Fund Operating Expenses.

Separate Account Annual Expenses (as a percentage of average Account Value in Subaccounts)



		Maximum Charge	Current Charge
Mortality and Expense Risk Charge		0.75%	0.75%
Other Expenses
Administration Charge	0.35%
Distribution Charge	0.80%
Total Other Expenses		1.15%	1.15%
Total Separate Account Annual Expenses without an Optional Benefit ³		1.90%	1.90%

Optional Guaranteed Lifetime Withdrawal Benefit, Investment Strategy ¹		1.50%	0.65%
Optional Guaranteed Lifetime Withdrawal Benefit, Investment Strategy ²		1.50%	0.85%
Highest Possible Total Separate Account Annual Expenses with an Optional Benefit ^{3, 4}		3.40%	2.75%

_________________________________________________________

¹State premium taxes currently range from 0% to 1.0%.

² The withdrawal charge decreases over time and is eliminated for each premium after it reaches five years old. See Part 4.

³Assessed daily on the Account Value in the Subaccounts.

⁴You may elect only one of the optional Guaranteed Lifetime Withdrawal Benefit Investment Strategies. Therefore, the Highest Possible Total Separate Account Annual Expenses reflect the election of Investment Strategy 2, which carries the higher current charge.

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Total Annual Fund Operating Expenses

(expenses deducted from Fund assets, including management fees, distribution fees and other expenses)

The next item shows the minimum and maximum total operating expenses charged by the Funds that you may pay periodically during the time you own the contract. More detail concerning each Fund’s fees and expenses is contained in the prospectus for each Fund.

Minimum: 0.04% Maximum: 0.49%

Gross annual Fund expenses¹as a percentage of average net assets in each Fund:



Fund	Manage- ment Fees	12b-1 Fee	Other Expenses	Acquired Fund Fees and Expenses	Total Annual Gross Expenses
Equity Subaccounts:
iShares Core S&P 500 ETF ²	0.04%	0.00%	0.00%	0.00%	0.04%
iShares Core S&P Mid-Cap ETF ²	0.07%	0.00%	0.00%	0.00%	0.07%
iShares Core S&P Small-Cap ETF ²	0.07%	0.00%	0.00%	0.00%	0.07%
iShares S&P 500 Growth ETF ²	0.18%	0.00%	0.00%	0.00%	0.18%
iShares S&P 500 Value ETF ²	0.18%	0.00%	0.00%	0.00%	0.18%
Vanguard Dividend Appreciation Index Fund, ETF Shares	0.07%	0.00%	0.01%	0.00%	0.08%
Vanguard Large-Cap Index Fund, ETF Shares	0.04%	0.00%	0.01%	0.00%	0.05%
Vanguard Mega Cap Index Fund, ETF Shares	0.04%	0.00%	0.03%	0.00%	0.07%
Fixed Income Subaccounts:
Fidelity VIP Government Money Market Portfolio	0.18%	0.00%	0.08%	0.00%	0.26%
iShares Core U.S. Aggregate Bond ETF ^{2, 3, 4}	0.05%	0.00%	0.00%	0.01%	0.06%
iShares iBoxx $ High Yield Corporate Bond ETF ²	0.49%	0.00%	0.00%	0.00%	0.49%
iShares Intermediate-Term Corporate Bond ETF ^{2, 5}	0.06%	0.00%	0.00%	0.00%	0.06%
iShares TIPS Bond ETF ²	0.19%	0.00%	0.00%	0.00%	0.19%
Vanguard Intermediate-Term Corporate Bond Index Fund, ETF Shares	0.06%	0.00%	0.01%	0.00%	0.07%
Vanguard Short-Term Bond Index Fund, ETF Shares	0.06%	0.00%	0.01%	0.00%	0.07%
Vanguard Total Bond Market Index Fund, ETF Shares	0.04%	0.00%	0.01%	0.00%	0.05%
International and Alternative Subaccounts:
iShares International Treasury Bond ETF ²	0.35%	0.00%	0.00%	0.00%	0.35%
Vanguard Developed Markets Index Fund, ETF Shares	0.04%	0.00%	0.03%	0.00%	0.07%
Vanguard Emerging Markets Stock Index Fund, ETF Shares	0.08%	0.00%	0.04%	0.00%	0.12%
Vanguard Real Estate Index Fund, ETF Shares	0.10%	0.00%	0.02%	0.00%	0.12%

(1) Each Fund’s expenses were provided in the most recent prospectus for that Fund. We have not independently verified the information. Current or future expenses may be more or less than those shown. More details concerning each Fund's fees and expenses are contained in the prospectus for that Fund.

(2) The Fund's investment advisory agreement provides that the Fund's investment advisor will pay all operating expenses of the Fund, except the management fees, interest expenses, taxes, expenses incurred with respect to the acquisition and disposition of portfolio securities and the execution of portfolio transactions, including brokerage commissions, distribution fees or expenses, litigation expenses and any extraordinary expenses.

(3) “Acquired Fund Fees and Expenses” ("AFFE") reflect the Fund’s pro rata share of the fees and expenses incurred by investing in other investment companies. The effect of AFFE is included in the total returns of the Fund.

(4) The Fund’s net expenses are 0.05%. The Fund’s advisor has contractually agreed to waive a portion of its management fees in an amount equal to the AFFE, if any, attributable to the Fund’s direct investments in other registered investment companies advised by the Fund's advisor, or its affiliates, through June 30, 2026. The contractual waiver may be terminated prior to June 30, 2026 only upon written agreement of the Trust and advisor.

(5) The expense information in the table has been restated to reflect current fees.

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Examples

The examples that follow are intended to help you compare the cost of investing in this contract with the cost of investing in other variable annuity contracts. Each example assumes that you invest $10,000⁵ in the contract for the time period indicated. Each example also assumes that your investment has a 5% return each year. Your actual return may be higher or lower.

Highest Cost Example with Rider

The following example includes the maximum mortality and expense risk charge, administration charge, distribution charge, withdrawal charge, and maximum Fund operating expenses; it also assumes you elect the GLWB Rider at the maximum charge. If the current GLWB Rider charge was used, the total cost would be less than indicated in this example. Based on these assumptions, your costs would be:

If you surrender your contract at the end of the applicable period:



1 year	3 years	5 years	10 years
$1,107	$1,832	$2,472	$4,242

If you remain invested in the contract, or if you select an Annuity Option with a life contingency at the end of the applicable period:



1 year	3 years	5 years	10 years
$407	$1,232	$2,072	$4,242

Highest Cost Example without Rider

If you surrender your contract at the end of the applicable period:



1 year	3 years	5 years	10 years
$950	$1,369	$1,714	$2,801

If you remain invested in the contract, or if you select an Annuity Option with a life contingency at the end of the applicable period:



1 year	3 years	5 years	10 years
$250	$769	$1,314	$2,801

Accumulation Unit Values

See Appendix A

_________________________________________________________

⁵This contract requires a minimum initial premium of $25,000.

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Summary of Contract

This Contract is an IRA

This contract is a variable annuity that must be issued as an Individual Retirement Annuity (IRA) as defined by section 408(b), 408(k) or 408A of the Tax Code. The contract itself does not provide the tax advantages typically provided by a variable annuity. The tax advantages available with this contract exist solely through the contract's qualification as an IRA.

You should read Part 8, “Tax Aspects of the Contract” for more information and consult a tax advisor about your particular circumstances. Most of the withdrawals you make before you are 59½ years old are subject to a 10% federal tax penalty on the amounts withdrawn.

You may want to purchase ETFs through a variable annuity issued as an IRA vs. directly though the IRA for several reasons, including, but not limited to, that this annuity provides a guaranteed minimum death benefit, access to guaranteed annuitization that can provide income for life and offers an optional living benefit that can provide income for life.

Parties to the Contract


•	Integrity Life Insurance Company - “We,” “our,” “us,” “the Company” and “Integrity Life” mean Integrity Life Insurance Company.


•	Owner - “You” and “your” mean the owner. This variable annuity contract is a contract between you and us. You, as the owner, have certain rights under the contract. Because this contract is an IRA, joint owners are not allowed and you may not transfer ownership.


•	Annuitant - You are the Annuitant, the person whose life is used to determine the Maturity Date of the contract and the amount of the annuity benefit, when elected. The Annuitant must be a natural person, and cannot be changed after the Contract Date. Joint Annuitants are not allowed until an Annuity Option is elected and will have no effect until the Annuity Date.


•	Beneficiary - The beneficiary is the person or persons who will receive the Death Benefit upon your death prior to the Annuity Date and upon election of Annuity Benefit, to receive any remaining payments. See Part 5, sections titled “Death Benefit,” “Selecting and Changing Your Beneficiary,” and “Maturity Date and Annuity Options.”


•	Custodial Account - If the contract is purchased through an established IRA custodial account, the contract owner will be considered the account, the Annuitant will generally be you as the account owner, and the account must be the beneficiary.


•	Covered Person - A person covered under one of the GLWB Riders. See Part 6.

Your Rights and Benefits

As the owner of the contract, you have the following rights:


•	To contribute, transfer and withdraw money. See Part 5.


•	To invest your premiums in the Investment Options. See Part 3.


•	To elect the optional benefits available at the time you purchase the annuity contract (for an additional cost). See Part 6.


•	To elect an Annuity Option. See Part 5, section titled "Maturity Date and Annuity Option."


•	To name one or more beneficiaries to receive the Death Benefit. See Part 5, sections titled "Death Benefit" and “Selecting and Changing Your Beneficiary.” If the owner is a custodian, the owner must name itself as the sole beneficiary.

Your rights are subject to the rules and significant limitations stated in your contract, in this prospectus and under the Tax Code.

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Investment Goals and Risks

This contract allows you to accumulate money for retirement or other long-term goals. This contract is intended for long-term investing only and is not intended as a vehicle for frequent trading. Transfers among Subaccounts are strictly limited under the terms of this contract. See Part 5, section titled "Allocations and Transfers."

An investment in any of the Subaccounts carries with it certain risks, including the risk that the value of your investment will decline and you could lose money. The Subaccounts invest in ETFs (except the Fidelity VIP Government Money Market Portfolio), each of which invests primarily in either common stocks or bonds. You could lose money if one or more of the issuers of stocks or bonds held by the ETFs become financially impaired or if the market as a whole declines. There is also the inherent risk that holders of common stock generally are behind creditors and holders of preferred stock for payments in the event of the bankruptcy of a stock issuer. Holders of corporate bonds are subject to issuer risk as well as credit risk (the risk that the issuer will default on its payment obligations under the bond) and interest rate risk (the risk that changes in interest rates may reduce (or increase) the market value of the bond). Some of the Subaccounts invest in Funds that invest in high yield securities that are rated below investment grade, commonly referred to as “junk bonds.” High yield securities may be subject to greater levels of credit or default risk than higher-rated securities. Some of the Subaccounts also invest in securities issued by companies in foreign countries, which means that world events, such as political upheaval, financial troubles, or natural disasters, will adversely affect the value of these securities. Foreign investments are also subject to currency risk, which is the chance that the value of a foreign investment, measured in U.S. dollars, will decrease because of unfavorable changes in currency exchange rates.

Shares of ETFs may trade at a discount from their net asset value in the secondary market. This risk is separate and distinct from the risk that the net asset value of the ETF shares may decrease. The amount of such discount from net asset value is subject to change from time to time in response to various factors.

For a complete discussion of the risks associated with investing in any particular Subaccount, see the prospectus of the corresponding Fund.

Account Value and Surrender Value

Your Account Value consists of the values of your Investment Options added together. Any amount allocated to a Subaccount will go up or down in value depending on the investment performance of the Fund. The value of premiums allocated to the Subaccounts is not guaranteed. Your Account Value also is subject to charges. See Part 4.

Your Surrender Value is equal to your Account Value, minus any withdrawal charge and applicable premium tax. See Part 4.

Your minimum Account Value is $2,000. If the Account Value goes below the minimum Account Value and we have received no premiums from you for two years, we may terminate the contract and pay you the Account Value. We will notify you in advance and will give you at least 60 days to contribute additional premium to bring the Account Value above the minimum if you wish to keep your contract in force. The minimum Account Value does not apply if you have a GLWB Rider.

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If you take withdrawals (other than the Free Withdrawal Amount or RMD), this contract also requires that you have a minimum Account Value of $20,000 remaining after the withdrawal. (Please note that you may fully surrender your contract at any time.) This rule does not apply if you have a GLWB Rider. See Part 5, section titled “Withdrawals.”

Your Right to Revoke (Free Look Period)

You may cancel your contract within 10 days after you receive it by returning it to our Administrative Office by mail, postmarked within the 10-day period. We will extend the 10-day period if required by state law. If you cancel your contract, we will return your Account Value, which may be more or less than your original premium depending upon the investment performance of the Subaccounts you selected and any applicable charges. You bear the investment risk, as well as any fees and charges incurred, during the free look period. See Part 4 for more discussion of the fees and charges. Some states require that we return your premium, or some amount other than your Account Value. In that case, we will return the greater of the amount required by state law and your Account Value.

Part 2 – Integrity Life and the Separate Account

Integrity Life Insurance Company

Integrity Life is a stock life insurance company organized under the laws of Arizona on May 3, 1966, and redomesticated to Ohio on January 3, 1995. Our principal executive office is located at 400 Broadway, Cincinnati, Ohio 45202. We are authorized to sell life insurance and annuities in 49 states and the District of Columbia. Integrity Life is a subsidiary of The Western and Southern Life Insurance Company, a life insurance company organized under the laws of the State of Ohio on February 23, 1888.

Integrity Life guarantees certain amounts under the contract. We refer to these guaranteed amounts as “insurance obligations,” such as income payments under the GLWB Rider after your Account Value is exhausted. In this case, we will pay you the income payments from our General Account. Benefit amounts paid from the General Account are subject to our financial strength and claims paying ability and our long-term ability to make such payments. There are risks to purchasing any insurance product.

The Western and Southern Life Insurance Company, Integrity Life’s parent company, has guaranteed the insurance obligations of Integrity Life to its contract owners, including the owners of this contract (the Guarantee). Amounts covered by the Guarantee are subject to the financial strength and claims paying ability of The Western and Southern Life Insurance Company. The Guarantee does not guarantee investment performance on the portion of your Account Value invested in the Subaccounts. The Guarantee provides that contract owners can enforce the Guarantee directly.

Separate Account I

Separate Account I of Integrity Life Insurance Company was established in 1986, and is maintained under the insurance laws of the State of Ohio. The Separate Account is a unit investment trust, which is a type of investment company governed by the Investment Company Act of 1940 (1940 Act).

Under Ohio law, we own the assets of our Separate Account and use them to support the Subaccounts of your contract and other variable annuity contracts. You participate in the Separate Account in proportion to the amounts in your contract. Integrity Life Insurance Company is responsible for all obligations under the contract.

Income, gains and losses, whether realized or unrealized, from assets allocated to the Separate Account are credited to or charged against the Separate Account without regard to our other income, gains or losses. The assets of the Separate Account may not be charged with the liabilities arising out of our other businesses. We may allow fees that are owed to us to stay in the Separate Account, and, in that way, we can participate proportionately in the Separate Account. We may also periodically withdraw amounts that are earned and owed to us from the Separate Account.

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Subaccounts

The Separate Account is divided into Subaccounts. Each Subaccount invests in shares of a Fund with the same name. The Subaccounts available in this contract are listed in Part 3. We may add, substitute or close Subaccounts from time to time, and we may limit the amount of your investment in one or more of the Subaccounts on a nondiscriminatory basis.

Each Subaccount available in this contract (except for the Fidelity VIP Government Money Market Portfolio) invests in the shares of a distinct ETF. Each ETF available through a Subaccount is a registered investment company. ETF shares are traded throughout the day on exchanges, such as the NYSE Arca, Inc. ETF shares may trade at, above or below their net asset value; however, for purposes of valuing the Subaccount Units, we will use the daily closing price of each ETF on its primary exchange.

Each ETF available through a Subaccount in this contract seeks investment results that correspond to an index. The returns on the ETF shares will not precisely correlate with the performance of the index. You cannot invest directly in an index. You may want to purchase this variable annuity instead of one that does not invest in passively managed ETFs for several reasons, including, but not limited to, that the underlying fund costs are substantially lower than those of most variable annuities on the market today.

Distribution of Variable Annuity Contracts

Touchstone Securities, Inc., an affiliate of Integrity Life, serves as the principal underwriter for our variable annuity contracts. Touchstone Securities, Inc. and Integrity Life are under the common control of the same parent company: The Western and Southern Life Insurance Company. The principal business address of Touchstone Securities is 400 Broadway, Cincinnati, Ohio 45202. The contracts are sold by individuals who are licensed insurance agents and registered representatives of broker-dealers or financial institutions that have entered into distribution agreements with us.

ETF Custodian

Mid Atlantic Trust Company (MATC), a South Dakota registered non-depository trust company, is the custodian for the ETFs held by the Subaccounts. MATC provides certain services to the Separate Account, including custody of and accounting services for the ETFs owned by the Separate Account. MATC also facilitates execution of the purchase and sale of the ETFs through third-party broker-dealers. We pay for these services under an agreement with MATC. The third-party broker-dealers, working with MATC, provide the ETFs to the Separate Account at the daily closing price of each ETF on its primary exchange. These brokerage fees are paid by MATC.

The services of MATC and the third-party broker-dealers underlie the process supporting this variable annuity and the subaccounts’ investments. If either MATC or the third-party broker-dealers terminate or significantly modify the services provided to us, we will seek to replace those services through other providers or through other methods. If suitable replacement services are not available, we will take such other actions or make changes in how we operate as allowed by law and your annuity contract to mitigate any adverse effects on the Separate Accounts, you and us to the greatest extent reasonably possible. These actions could include working directly with broker-dealers to purchase ETFs; bringing in-house the services being provided by MATC; and/or making available index mutual funds as underlying investment options. While we believe it is highly unlikely, it is possible that under a worst-case scenario we would be required to disallow additional contributions into the contract, and that transfers could only be made into the money market subaccount (although your then-current allocations would not be affected).

Changes in How We Operate

We can change how the Company or our Separate Account operates, subject to the approval of federal or state regulators when required by the 1940 Act or other applicable laws. We will notify you if any changes result in a material change in the Funds or Investment Options. We may take one or more of the following actions:


•	combine the Separate Account with any other separate account we own;


•	transfer assets of the Separate Account to another separate account we own;


•	add, remove, substitute, close, change, combine or limit investment in Subaccounts or withdraw assets relating to your contract from one Subaccount and put them into another;

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•	register or end the registration of the Separate Account under the 1940 Act;


•	operate our Separate Account under the direction of a committee or discharge a committee at any time (the committee may be composed of a majority of persons who are “interested persons” of Integrity Life);


•	restrict or eliminate any voting rights of owners or others that affect our Separate Account;


•	cause one or more Subaccounts to invest in a fund other than or in addition to the Funds;


•	operate our Separate Account or one or more of the Subaccounts in any other form the law allows, including a form that allows us to make direct investments; we may make any legal investments we wish;


•	make any changes required by the 1940 Act or other federal securities laws;


•	make any changes necessary to maintain the status of the contracts as annuities and/or IRAs under the Tax Code; or


•	make other changes required under federal or state law relating to annuities.

Part 3 – Your Investment Options

You may invest your premiums in the Subaccounts, the Fixed Account, or both, subject to any restrictions described in this prospectus. If you purchase one of the GLWB Riders, your Investment Options are limited. See Part 6.

Each Subaccount invests in the shares of a distinct Fund. Each Subaccount and its corresponding Fund share the same name. The value of your Subaccount will vary with the performance of the corresponding Fund. For a full description of each Fund, see that Fund’s prospectus and SAI.

The Fund Families and the Funds

Below is a description of each ETF Fund family, iShares and The Vanguard Group, as well as the Fidelity Variable Insurance Products, which offers the Government Money Market Portfolio in this annuity, followed by a brief description of each Fund. Each Fund has a separate prospectus and SAI that provides more details about management fees and other expenses deducted from the Fund, the Fund’s principal investment strategies, and the risks associated with investing in the Fund. The Fund descriptions included below were taken from the most recent publicly available documentation for the Funds as of the time this prospectus was drafted. More recent disclosure may be available in the Funds’ current prospectuses. There is no guarantee that a Fund will meet its investment objective. For a prospectus containing complete information on any Fund, including the risks associated with investing, call our Administrative Office toll-free at 1-800-325-8583.

Fidelity Variable Insurance Products

The Portfolio is a Fidelity® Variable Insurance Product and a series of Variable Insurance Products Fund V. Fidelity Management & Research Company, located at 245 Summer Street, Boston, MA 02210, is the investment advisor.

iShares

iShares Trust is a registered investment company that consists of separate investment portfolios called Funds. All the Funds listed below are ETFs. BlackRock Fund Advisors (BFA), 400 Howard Street, San Francisco, CA 94105, is the investment advisor to each Fund listed in this section. BFA uses a “passive” or indexing approach to try to achieve each Fund’s investment objective. Unlike many investment companies, each iShares Fund does not try to “beat” the index it tracks and does not seek temporary defensive positions when markets decline or appear overvalued. BFA uses a representative sampling indexing strategy to manage each Fund as described in the Fund's prospectus. Unless otherwise indicated in the Fund description, each iShares Fund generally invests at least 90% of its assets in securities of the underlying index and in depositary receipts representing securities of the underlying index, and/or securities that provide substantially similar exposure to securities in the underlying index. Each Fund may invest the remainder of its assets in certain futures, options and swap contracts, cash and cash equivalents, including money market funds advised by BFA or its affiliates, as well as in securities not included in its underlying index, but which BFA believes will help the Fund track its underlying index.

The Vanguard Group, Inc.

The Vanguard Group, Inc. is a family of investment companies. Many of the investment companies offer ETF shares, including all those listed below. Each corresponding Subaccount invests in the ETF share class. The Vanguard Group, Inc., P.O. Box 2600, Valley Forge, PA 19482, is the investment advisor to each Fund listed in this section.

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Equity Funds:

iShares Core S&P 500 ETF

The Fund seeks to track the investment results of the S&P 500® Index, which measures the performance of the large-capitalization sector of the U.S. equity market. The component stocks of the index are weighted based on the float-adjusted market value of their outstanding shares. The index consists of securities from a broad range of industries. The components of the index, and the degree to which these components represent certain industries, are likely to change over time.

iShares Core S&P Mid-Cap ETF

The Fund seeks to track investment results of the S&P MidCap 400® Index, which measures the performance of the mid-capitalization sector of the U.S. equity market. The component stocks of the index are mid-cap stocks weighted based on the float-adjusted market value of their outstanding shares. Component stocks are selected by the index provider for liquidity and industry group representation. The index consists of stocks from a broad range of industries. The components of the index, and the degree to which these components represent certain industries, are likely to change over time.

iShares Core S&P Small-Cap ETF

The Fund seeks to track the investment results of the S&P SmallCap 600® Index, which measures the performance of the small-capitalization sector of the U.S. equity market. The component stocks of the index are small-cap stocks weighted based on the float-adjusted market value of their outstanding shares. Component stocks are selected by the index provider for liquidity and industry group representation. The index consists of stocks from a broad range of industries. The components of the index, and the degree to which these components represent certain industries, are likely to change over time.

iShares S&P 500 Growth ETF

The Fund seeks to track investment results of the S&P 500 Growth Index™, which measures the performance of the large-capitalization growth sector of the U.S. equity market. It is a subset of the S&P 500^® and consists of those stocks in the S&P 500^® exhibiting the strongest growth characteristics, as determined by the index provider. The components of the index are likely to change over time.

iShares S&P 500 Value ETF

The Fund seeks to track investment results of the S&P 500 Value Index™, which measures the performance of the large-capitalization value sector of the U.S. equity market. It is a subset of the S&P 500^® and consists of those stocks in the S&P 500^® exhibiting the strongest value characteristics, as determined by the index provider. The components of the index are likely to change over time.

Vanguard Dividend Appreciation Index Fund, ETF Shares

The Fund seeks to track the performance of a benchmark index that measures the investment return of common stocks of companies that have a record of increasing dividends over time. The Fund employs an indexing investment approach designed to track the performance of the NASDAQ US Dividend Achievers Select Index, which consists of common stocks of companies that have a record of increasing dividends over time. The Fund attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.

Vanguard Large-Cap Index Fund, ETF Shares

The Fund seeks to track the performance of a benchmark index that measures the investment return of large-capitalization stocks. The Fund employs an indexing investment approach designed to track the performance of the CRSP US Large Cap Index, a broadly diversified index of large U.S. companies representing approximately the top 85% of the U.S. market capitalization. The Fund attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.

Vanguard Mega Cap Index Fund, ETF Shares

The Fund seeks to track the performance of a benchmark index that measures the investment return of large-capitalization stocks in the United States. The Fund employs an indexing investment approach designed to track

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the performance of the CRSP US Mega Cap Index. The index is a float-adjusted, market-capitalization-weighted index designed to measure equity market performance of mega-capitalization stocks in the United States. The Fund attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.

Fixed Income Funds:

Fidelity VIP Government Money Market Portfolio

The Portfolio seeks as high a level of current income as is consistent with preservation of capital and liquidity. The advisor normally invests at least 99.5% of total assets in cash, U.S. Government securities and/or repurchase agreements that are collateralized fully (i.e., collateralized by cash or government securities). The advisor invests in U.S. Government securities issued by entities that are chartered or sponsored by Congress but whose securities are neither issued nor guaranteed by the U.S. Treasury. The fund invests in compliance with industry-standard regulatory requirements for money market funds for quality, maturity, liquidity, and diversification of investments.

iShares Core U.S. Aggregate Bond ETF

The Fund seeks to track investment results of the Bloomberg Barclays U.S. Aggregate Bond Index, which measures the performance of the total U.S. investment-grade bond market. The index includes investment-grade U.S. Treasury bonds, government-related bonds, corporate bonds, mortgage-backed pass-through securities, commercial mortgage-backed securities and asset-backed securities that are publicly offered for sale in the United States. The components of the index, and the degree to which these components represent certain industries, are likely to change over time. The securities in the index must have $300 million or more of outstanding face value and at least one year remaining to maturity, with the exception of amortizing securities such as asset-backed and mortgage-backed pass-through securities, which have lower thresholds as defined by the index provider. In addition, the securities must be denominated in U.S. dollars and must be fixed-rate and non-convertible. The index is market capitalization-weighted and index components are updated on the last business day of each month.

iShares iBoxx $ High Yield Corporate Bond ETF

The Fund seeks to track investment results of the Markit iBoxx^® USD Liquid High Yield Index, which is a rules-based index consisting of the liquid, U.S. dollar-denominated, high yield corporate bonds for sale in the United States. The index is designed to provide a broad representation of the U.S. dollar-denominated liquid high yield corporate bond market. The index is a modified market-value weighted index with a cap on each issuer of 3%. There is no limit to the number of issues in the index. The components of the index, and the degree to which these components represent certain industries, are likely to change over time. The securities in the index include U.S. dollar-denominated high yield corporate bonds that: (i) are issued by companies domiciled in countries classified as developed markets by the index provider, (ii) have an average rating of sub-investment grade, (iii) are from issuers with at least $1 billion outstanding face value, (iv) have at least $400 million of outstanding face value, (v) have an original maturity date of less than 15 years, (vi) have at least one year to maturity, and (vii) have at least one year and six months to maturity for new index insertions.

iShares Intermediate-Term Corporate Bond ETF

The Fund seeks to track investment results of the ICE BofAML 5-10 Year US Corporate Index, which measures the performance of investment-grade corporate bonds that are U.S. dollar-denominated and have a remaining maturity of greater than or equal to five years and less than ten years. The components of the index, and the degree to which these components represent certain sectors, are likely to change over time. The index consists of investment-grade corporate bonds that have a remaining maturity of greater than or equal to five years and less than ten years and have $250 million or more of outstanding face value. In addition, the securities in the index must be denominated in U.S. dollars and must be fixed-rate. Excluded from the index are equity-linked securities, securities in legal default, hybrid securitized corporates, Eurodollar bonds, taxable and tax-exempt U.S. municipal securities, and dividends-received-deduction-eligible securities. The index is market-capitalization weighted, and the securities in the index are updated on the last business day of each month.

iShares TIPS Bond ETF

The Fund seeks to track investment results of the Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L), which measures the performance of the inflation-protected public obligations of the U.S. Treasury, commonly known as “TIPS.” TIPS are securities issued by the U.S. Treasury that are designed to provide inflation protection to investors. TIPS are income-generating instruments whose interest and principal payments are

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adjusted for inflation—a sustained increase in prices that erodes the purchasing power of money. The inflation adjustment, which is typically applied monthly to the principal of the bond, follows a designated inflation index, the consumer price index (“CPI”), and TIPS’ principal payments are adjusted according to changes in the CPI. A fixed coupon rate is applied to the inflation-adjusted principal so that as inflation rises, both the principal value and the interest payments increase. This can provide investors with a hedge against inflation, as it helps preserve the purchasing power of an investment. Because of this inflation adjustment feature, inflation-protected bonds typically have lower yields than conventional fixed-rate bonds. The index includes all publicly-issued U.S. Treasury inflation-protected securities that have at least one year remaining to maturity, are rated investment-grade, and have $300 million or more of outstanding face value. In addition, the securities in the index must be denominated in U.S. dollars and must be fixed-rate and non-convertible. The index is market-capitalization weighted, and the securities in the index are updated on the last calendar day of each month.

Vanguard Intermediate-Term Corporate Bond Index Fund, ETF Shares

The Fund seeks to track the performance of a market-weighted corporate bond index with an intermediate-term dollar-weighted average maturity. The Fund employs an indexing investment approach designed to track the performance of the Bloomberg Barclays U.S. 5-10 Year Corporate Bond Index. This index includes U.S. dollar-denominated, investment-grade, fixed-rate, taxable securities issued by industrial, utility, and financial companies, with maturities between 5 and 10 years. The Fund invests by sampling the index, meaning that it holds a range of securities that, in the aggregate, approximates the full index in terms of key risk factors and other characteristics. All of the Fund’s investments will be selected through the sampling process, and under normal circumstances, at least 80% of the Fund’s assets will be invested in bonds included in the index. The Fund maintains a dollar-weighted average maturity consistent with that of the index.

Vanguard Short-Term Bond Index Fund, ETF Shares

The Fund seeks to track the performance of a market-weighted bond index with a short-term dollar-weighted average maturity. The Fund employs an indexing investment approach designed to track the performance of the Bloomberg Barclays U.S. 1-5 Year Government/Credit Float Adjusted Index. This index includes all medium and larger issues of U.S. government, investment-grade corporate, and investment-grade international dollar-denominated bonds that have maturities between 1 and 5 years and are publicly issued. The Fund invests by sampling the index, meaning that it holds a range of securities that, in the aggregate, approximates the full index in terms of key risk factors and other characteristics. All of the Fund’s investments will be selected through the sampling process, and at least 80% of the Fund’s assets will be invested in bonds held in the index. The Fund maintains a dollar-weighted average maturity consistent with that of the index, which generally does not exceed 3 years.

Vanguard Total Bond Market Index Fund, ETF Shares

The Fund seeks to track the performance of a broad, market-weighted bond index. The Fund employs an indexing investment approach designed to track the performance of the Bloomberg Barclays U.S. Aggregate Float Adjusted Index. This index represents a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States, including government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities, all with maturities of more than 1 year. The Fund invests by sampling the index, meaning that it holds a broadly diversified collection of securities that, in the aggregate, approximates the full index in terms of key risk factors and other characteristics. All of the Fund’s investments will be selected through the sampling process, and at least 80% of the Fund’s assets will be invested in bonds held in the index. The Fund maintains a dollar-weighted average maturity consistent with that of the index, which generally ranges between 5 and 10 years.

International and Alternative Funds:

iShares International Treasury Bond ETF

The Fund seeks to track investment results of the S&P International Sovereign Ex-U.S. Bond Index, which is a broad, diverse, market value-weighted index designed to measure the performance of bonds denominated in local currencies and issued by foreign governments in developed market countries outside the U.S. The index methodology is designed to balance the weighting of each country within the index by limiting the weightings of countries with higher debt outstanding and reallocating this excess to countries with lower debt outstanding. To be eligible for inclusion in the index, the issuing country must be a “Developed Country” as classified by the index provider. The index includes securities issued by the governments in the following 18 countries: Australia, Austria,

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Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. The index includes bonds having a remaining maturity greater than one year.

Vanguard Developed Markets Index Fund, ETF Shares

The Fund seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in Canada and the major markets of Europe and the Pacific region. The Fund employs an indexing investment approach designed to track the performance of the FTSE Developed All Cap ex US Index, a market-capitalization-weighted index that is made up of approximately 3,790 common stocks of large-, mid-, and small-cap companies located in Canada and the major markets of Europe and the Pacific region. The Fund attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.

Vanguard Emerging Markets Stock Index Fund, ETF Shares

The Fund seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in emerging market countries. The Fund employs an indexing investment approach designed to track the performance of the FTSE Emerging Markets All Cap China A Inclusion Index, a market-capitalization-weighted index that is made up of approximately 4,027 common stocks of large-, mid-, and small-cap companies located in emerging markets around the world. The Fund invests by sampling the index, meaning that it holds a broadly diversified collection of securities that, in the aggregate, approximates the full index in terms of key characteristics. These key characteristics include industry weightings and market capitalization, as well as certain financial measures, such as price/earnings ratio and dividend yield.

Vanguard Real Estate Index Fund, ETF Shares

The Fund seeks to provide a high level of income and moderate long-term capital appreciation by tracking the performance of a benchmark index that measures the performance of publicly traded equity real estate investment trusts (REITs) and other real estate-related investments. The Fund employs an indexing investment approach designed to track the performance of the MSCI US Investable Market Real Estate 25/50 Index, an index that is made up of stocks of large, mid-size, and small U.S. companies within the real estate sector, which is composed of equity REITs, including specialized REITs, and real estate management and development companies. The Fund attempts to track the index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.

Static Asset Allocation Models

We are not currently offering asset allocation models. We have previously offered asset allocation models in connection with your variable annuity at no extra charge, and may do so in the future. Asset allocation is the process of investing in different asset classes – such as equity funds, fixed income funds, and alternative funds – depending on your personal investment goals, tolerance for risk, and investment time horizon. By spreading your money among a variety of asset classes, you may be able to reduce the risk and volatility of investing, although there are no guarantees.

We have no discretionary authority or control over your choice of Subaccounts or your other investment decisions. We may make available educational information and materials, such as a risk tolerance questionnaire, that may help you select an asset allocation model, but we do not recommend asset allocation models or otherwise provide advice about whether an asset allocation model may be appropriate for you.

Our asset allocation models are "static." Although we may change or terminate asset allocation models we are offering to new contract purchasers, we will not change your allocations unless you advise us to do so. You will not be notified if the models are terminated or changed. You will not be provided with information regarding any terminations or changes to the asset allocation models. If you elect to invest using an asset allocation model, and if you elect automatic rebalancing, we will continue to rebalance your percentage allocations among the Funds in your existing model.

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You should consult your investment professional periodically to consider whether any model you have selected is still appropriate for you. You may choose to invest in an asset allocation model or change your asset allocation at any time, subject to the limitations stated in your contract and this prospectus. See Part 5, section titled “Allocations and Transfers.”

Asset allocation does not ensure a profit, guarantee that your Account Value will increase or protect against a decline if market prices fall. An asset allocation model may not perform as intended. Any asset allocation models offered are based on then-available Funds in this annuity. We may discontinue, add, eliminate or change the models at any time.

The Fixed Account

Our Fixed Account is offered through our General Account, which also supports any portion of the Death Benefit, the annuity benefit, and any guarantees under a Rider that are in excess of Account Value. The General Account is not registered under the Securities Act of 1933 or the 1940 Act. Disclosures regarding the Fixed Account and the General Account are subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses.

Systematic Transfer Option (STO)

We offer a STO (a Fixed Account) that provides a fixed interest rate on each premium allocated to the STO. That interest rate is guaranteed for that premium while in the STO period selected. Available STO periods are six months or one year. All STO premiums will be automatically transferred into the Subaccounts within either six months or one year of your premium payment into the STO, depending on which STO period you select. You can invest in either the six-month or one-year STO at any one time, but not both. We require a minimum premium to the STO of $6,000 to fund the six-month STO or $12,000 to fund the one-year STO. We will automatically transfer equal amounts monthly for the six-month STO and either monthly or quarterly for the one-year STO. Once you have invested premium in a STO, it cannot be transferred from the STO except as the automatic transfers described above.

The STO is available for new premiums only. You cannot transfer from the Subaccounts into the STO. See “Systematic Transfer Program” in Part 9 for more details on this program. If you elect a GLWB Rider, the STO is only available for your initial premium received by us on or before the Contract Date.

Part 4 – Deductions and Charges

Separate Account Charges

We deduct a daily charge equal to an annual effective rate of 1.90% of your Account Value in each of the Subaccounts to cover our separate account charges, which include:


•	mortality and expense risk charge of 0.75%;


•	administration charge of 0.35%; and


•	distribution charge of 0.80%.

The mortality and expense risk charge pays us for assuming the mortality risk and the expense risk under the contract. The mortality risk, as used here, refers to our risk that Death Benefits are greater than anticipated, or that annuitants, as a class of persons, will live longer than estimated and we will be required to pay out more annuity benefits than anticipated. The expense risk is our risk that the expenses of administering the contract will exceed the reimbursement for administrative expenses.

The administration charge is used to reimburse us for administrative expenses, including, but not limited to, processing applications, issuing contracts, processing customer orders and other requests, making investments, providing regular reports and confirmations to customers, providing reports and updates to regulators, maintaining accounting records for each contract owner, administering income payments, furnishing accounting and valuation services (including the calculation and monitoring of the daily Unit Values), reconciling and depositing cash receipts, and providing forms.

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The administration charge also reimburses us for the cost and commissions associated with investing in the underlying ETFs, including brokerage commissions. The brokerage commissions associated with the ETF trades will be paid directly by MATC to the executing broker, and indirectly by us under an arrangement with MATC. See Part 2, section titled “ETF Custodian.” This arrangement is a proprietary fee arrangement based on a percentage of assets invested in the ETFs. Ultimately, this cost is passed along to you as part of this administrative expense.

The distribution charge reimburses us for the costs of distribution of this variable annuity, including commissions paid to our distributors.

We expect to make a profit from the separate account charges.

Fund Expenses

The net asset value of the Fund shares reflects investment management fees and other expenses that have already been deducted from the assets of the Funds. Please refer to Part 1, section titled “Total Annual Fund Operating Expenses,” and the individual Fund’s prospectus for details on Fund expenses.

Withdrawal Charge

If you withdraw your premiums, you may be charged a withdrawal charge of up to 7% of the premium. The amount of the withdrawal charge is a percentage of each premium withdrawn and not of the Account Value. The charge varies, depending upon the "age" of the premiums included in the withdrawal. The “age” of a premium is the number of years that have passed since each premium was paid.



Premium Year	Charge as a Percentage of the Premium Withdrawn
1	7%
2	7%
3	6%
4	5%
5	4%
thereafter	0

When you take a withdrawal, the oldest premium is treated as the first withdrawn, then next oldest and so on. Any gain or earnings in your contract come out only after an amount equal to all your premiums, and any applicable charges on those premiums, is withdrawn. Please note, however, that for tax purposes, withdrawals are generally considered to be gain first. See Part 8.

Because the withdrawal charge applies to each premium, if your Account Value has declined due to poor performance of your selected Subaccounts or you have taken previous withdrawals, including the Free Withdrawal Amount, the withdrawal charge may be greater than the amount available for withdrawal. In some instances, your Account Value may be positive, but you will not have money available to withdraw due to the amount of the

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withdrawal charge still applicable to your premiums. A withdrawal charge applies to the withdrawal charge amount itself since this amount is part of the premium withdrawn.

You may take your Free Withdrawal Amount each Contract Year without paying a withdrawal charge. More details on the Free Withdrawal Amount are in Part 5, in the section titled "Free Withdrawal Amount."

We will not deduct a withdrawal charge from:


•	the Death Benefit; or


•	a withdrawal used to buy an immediate annuity from us after the first Contract Anniversary with either: (i) life contingencies; or (ii) a period certain that provides for fixed payments over 10 or more years.

For more information and examples of application of the withdrawal charge, see Appendix B.

Reduction or Elimination of the Withdrawal Charge

We can reduce or eliminate the withdrawal charge for individuals or a group of individuals if we anticipate expense savings. We may do this based on the size and type of the group, the amount of the premium, or whether there is some relationship with us. Examples of these relationships would include being an employee of Integrity Life or an affiliate, receiving distributions or making internal transfers from other contracts we issued, or transferring amounts held under qualified plans that we, or our affiliates, sponsored. We will not unlawfully discriminate against any person or group if we reduce or eliminate the withdrawal charge.

Commission Allowance and Additional Payments to Distributors

We generally pay a commission to the sales representative up to a maximum of 6% of premiums, and up to a 0.80% trail commission paid on Account Value starting in the second Contract Year. Commissions may vary due to differences between states, sales channels, sales firms and special sales initiatives.

A broker-dealer or financial institution that distributes our variable annuity contracts may receive additional compensation from us for training, marketing or other services provided. These services may include special access to sales staff and advantageous placement of our products. We do not make an independent assessment of the cost to the broker-dealer or financial institution of providing such services.

Integrity Life has agreements with some broker-dealer firms under which we pay varying amounts, but no more than 0.25% of Account Value, for enhanced access to their registered representatives. This payment to broker-dealer firms is separate from and in addition to brokerage commissions paid to our distributors from your Distribution Charge. The broker-dealer firms are BBVA Securities, Inc., BOK Financial Securities, Inc., Cetera Investment Services LLC, Commerce Brokerage Services, Inc., CUSO Financial Services, LP, Frost Brokerage Services, Inc., Hancock Investment Services, Inc., Infinix Investments, Inc., LPL Financial LLC, M&T Securities, Inc., PNC Investments LLC, and US Bancorp Investments, Inc.

Depending on the arrangements in place at any particular time, a broker-dealer, and the registered representatives associated with it, may have a financial incentive to recommend a particular variable annuity contract. This could create a conflict of interest between the broker-dealer or the registered representative and the customer. These payments could provide incentive to a broker-dealer or registered representative to recommend a Contract that is not in your best interest. You can find more about compensation in the SAI.

Optional Benefit Charges

You may purchase one of the GLWB Riders offered with this contract, which provide optional benefits for an additional cost. The additional cost of the Riders, along with complete details about their benefits, is provided in Part 6.

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Tax Reserve

In the future, we may charge for taxes or set aside reserves for taxes, which will reduce the investment performance of the Subaccounts.

State Premium Tax

We will not deduct state premium taxes from your premiums before investing them in the Investment Options, unless required by your state law. If you elect an Annuity Option, we will deduct any applicable state premium taxes from the amount available for the Annuity Option. State premium taxes currently range from 0% to 1.0% for IRAs.

Part 5 – Terms of Your Variable Annuity

Purchasing the Contract

If you wish to purchase a contract, you must apply for it through an authorized sales representative. The sales representative will send your completed application to us, and we will decide whether to accept or reject it. If we accept your application, we will issue a contract and send it to you either directly or through your sales representative.

To apply for a contract, you must be of legal age to enter into a contractual relationship under applicable state law, generally 18 years old. You must be no older than 80 at the time of application.

This contract must be issued as an IRA. Subject to various rules and limitations, the Tax Code permits you to transfer or roll over money tax-free from one IRA to another IRA or from certain other qualified plans, such as a 401(k) plan, to an IRA. See Part 8.

If you are transferring money from another annuity contract that is an IRA to acquire this contract, you should carefully compare this contract to your current contract. You may have to pay a withdrawal charge under your current contract to transfer to this contract, and this contract has its own withdrawal charges that would apply to you. The other fees and charges under this contract may be higher (or lower), and the benefits may be different, than those of your current contract. In addition, you may have to pay federal income and penalty taxes on the transfer if it does not qualify for tax-free transfer or rollover treatment. You should not transfer from another annuity contract unless you determine that the transfer is right for you. Please note that the person who sells you this contract generally will earn a commission on the sale. You should also consult a tax advisor before requesting a tax-free transfer or rollover.

Premium Payments



Minimum initial premium⁶	$25,000
Minimum additional premium	$1,000
Maximum total premium without prior approval	$1,000,000
Maximum additional premium	up to applicable IRA limits each calendar year plus permissible transfers and rollovers

Because the initial premium must be $25,000 or more, the contract can only be purchased by transfer or rollover from an existing IRA or from certain other qualified plans, such as a 401(k) or a 403(b) plan. You can make additional premium payments at any time before age 81, or earlier if limited by the Tax Code. For example, you cannot contribute new premiums other than transfers and rollovers to a traditional IRA for the calendar year in which you reach age 70½, and thereafter. We may issue the contract for less than the minimum initial premium if we

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⁶The minimum initial premium is $15,000 if the annuity is purchased in certain distribution outlets, currently at distribution outlets affiliated with U.S. Bancorp.

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receive an application that indicates the total amount of a rollover from multiple sources will reach the minimum initial premium amount. We may also issue the contract for up to 10% less than the minimum initial premium indicated above.

You must determine whether any premium qualifies as a permissible contribution subject to favorable tax treatment under the Tax Code. You must also determine whether such amount qualifies as a permissible transfer or rollover contribution under the Tax Code. For example, you cannot roll over from a SIMPLE IRA during the first two years of participation in the SIMPLE IRA and a roll over of an after-tax contribution that had been made to a Roth IRA may be a taxable event. You cannot roll over distributions from an existing IRA or from certain other qualified plans that are part of a series of substantially equal payments made over your life expectancy, distributions made for a specified period of 10 years or more, RMD distributions or hardship distribution. For more information about limitations, see Part 8, section titled “Rollovers and Transfers.”

If you transfer or roll over money into this contract in the calendar year on or after you reach age 70½, you must take your RMD for the current calendar year before you purchase this contract.

We may refuse additional premiums if: (1) you have allocated some or all of the premium to an Investment Option, to which we are no longer accepting additional premiums; (2) the additional premium does not meet our minimum additional premium amount or exceeds our maximum premium amount for the annuity contract or for a specific Investment Option; (3) the total premiums paid under all annuity contracts issued by us, or our affiliates, on your life exceed $1,000,000; (4) we believe that the additional premium is being made by or on behalf of an institutional investor; or (5) for any reason allowed by law. You cannot purchase this contract with a rollover or transfer of death benefits from another annuity.

Your premiums are invested in the Investment Options you select. Each premium is credited as of the date we receive the premium in Good Order at our Administrative Office, except that additional time is allowed for the application of the initial premium under Rule 22c-1 of the 1940 Act. Good Order means complete information we require to process your application or any request.

Initial premium allocated to the subaccounts will be priced at the unit value determined no later than two business days after receipt of a completed application (including all necessary related information). If the application is not complete, we may retain the initial premium for up to five business days while attempting to complete it. If the application is not completed within five business days, you will be informed of the reason for the delay. The initial premium will be returned unless you specifically allow us to hold the premium until the application is completed.

Once received in Good Order, premiums allocated to Subaccounts are used to purchase Units at the Unit Value as of the next close of the New York Stock Exchange.

Each additional premium will be credited to your Subaccount under your stated allocation as of the date we have received the premium in Good Order at our Administrative Office. If you submit a different allocation, a 60-day waiting period will start before you can make a subsequent transfer or allocation change. See Part 5, section titled "Allocations and Transfers."

All premiums are deemed received when they are received in Good Order at our Administrative Office.

Units in Our Separate Account

Your investment in the Subaccounts is used to purchase Units. On any given day, the value you have in a Subaccount is the number of Units you own in that Subaccount multiplied by the Unit Value. The Units of each Subaccount have a different Unit Value.

Units are purchased when you contribute new premium to your contract or transfer amounts to a Subaccount. Units are redeemed (sold) when you make withdrawals or transfer amounts out of a Subaccount into a different Subaccount. We also redeem Units to pay the Death Benefit or if you elect an Annuity Option, or as permitted or required by law. The number of Units purchased or redeemed in any Subaccount is calculated by dividing the dollar amount of the transaction by the next computed Unit Value for that Subaccount, calculated as of the next close of business of the New York Stock Exchange.

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Each Unit represents a fractional undivided interest in the assets held in the related Subaccount. If Units of any Subaccount are redeemed, the fractional undivided interest represented by each remaining Unit will be increased. If additional Units are issued by any Subaccount, the fractional undivided interest represented by each remaining Unit will be decreased. Units will remain outstanding until redeemed by a contract owner.

If we make a mistake in executing any purchase or redemption, we will reprocess, if necessary, any trades made in error and ensure that you receive the correct Unit Values. We will put you in the same position you otherwise would have been in. Depending on the change in Unit Values between the error and correction, we may experience a gain or loss as a result of any reprocessing.

The Unit Value of each Subaccount will fluctuate with the investment performance of the corresponding Fund, which reflects the investment income, realized and unrealized capital gains and losses of the Fund, and the Fund’s expenses.

How We Determine Unit Value

We determine the Unit Value for each Subaccount after the close of business of the New York Stock Exchange, which is normally 4 p.m. Eastern Time on each Business Day. To value your Subaccount Units invested in ETFs, we use the daily closing price of each ETF on its primary exchange. Note that the ETF shares may trade at a discount from the net asset value of the ETF. To value your Subaccount Units invested in the Fidelity VIP Government Money Market Portfolio, we use the daily net asset value provided by Fidelity for the VIP Government Money Market Portfolio. In addition to the Fund shares, the Subaccounts that invest in the ETFs also hold an accrual for any dividends or other distributions declared by the ETF, which will be reinvested in the ETF on the next Business Day after payment.

The Unit Value of each Subaccount for any Business Day is equal to the Unit Value for the previous Business Day, multiplied by the net investment factor for that Subaccount on the current Business Day. The net investment factor measures the investment performance of a Subaccount from one Business Day to the next.

We determine the net investment factor by dividing the net asset value of the Subaccount for that valuation period by the net asset value of the Subaccount for the preceding valuation period. We subtract from that result the daily equivalent of the annual separate account charges for each calendar day since the last day that a Unit Value was determined (for example, a Monday calculation will include charges for Saturday and Sunday).

Generally, this means that we adjust Unit Values to reflect the change in value of the Fund shares, for the separate account charges and, if elected, the GLWB Rider charge.

Allocations and Transfers

Only one investment allocation to the Subaccounts may be in place at any time on your contract. This allocation applies to your current investment, future premiums, and rebalancing. In addition to your one allocation to the Subaccounts, you may allocate some or all of your initial premium and additional new premium to the STO. Transfers from the STO to the Subaccounts must be according to your one investment allocation to the Subaccounts.

You may reallocate all or part of your Account Value among the Subaccounts; however, each reallocation triggers a 60-day waiting period before you can make another allocation change. A transfer between or among Subaccounts is an “allocation change.” Here are the details:


•	A 60-day waiting period applies after your initial allocation on the Contract Date. This means you must wait 60 days after the contract is issued before you make an allocation change.


•	A 60-day waiting period applies after any voluntary allocation change. This means you must wait 60 days after the date you make an allocation change before you make another allocation change.


•	The following allocation changes will not trigger the 60-day waiting period:


o	automatic rebalancing;


o	automatic transfers from the STO;

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o	reallocation as a result of any material change in a Fund or a Subaccount (see Part 2, section titled “Changes in How We Operate”);


o	automatic transfers that take place upon cancellation of a GLWB Rider, unless you make additional voluntary allocation changes in connection with the GLWB Rider cancellation.

Allocations and transfers are restricted further if you have a GLWB Rider. See Part 6.

To request a reallocation, you may write to our Administrative Office at the address in the Glossary. Mail sent to any other address may not be in Good Order. You may also contact your sales representative to request a reallocation. Each request for a reallocation or transfer must specify:


•	the contract number; and


•	the Subaccounts and allocation percentages stated in whole percentages.

If one portion of a reallocation request involving multiple Subaccounts violates our policies or is not in Good Order, the entire request will not be processed. You will need to resubmit a request that is in Good Order for your reallocation to be processed.

You may also request a reallocation through our telephone transfer service using your personal identifiers. We will honor telephone instructions from any person who provides correct identifying information. We are not responsible for fraudulent telephone requests we believe to be genuine according to these procedures. Accordingly, you bear the risk of loss if unauthorized persons make reallocations on your behalf. Telephone reallocations may be requested from 9:00 a.m. to 5:00 p.m. Eastern Time, on any day we are open for business. We do not guarantee that we will be able to accept transaction instructions via telephone at all times, and we reserve the right to limit, restrict or terminate telephonic transaction privileges at any time.

If we receive your request in Good Order at our Administrative Office before the close of regular trading on the New York Stock Exchange (normally, 4:00 p.m. Eastern Time) on a Business Day, you will receive the Unit Values for the Subaccounts as of the close of business on the day you call.

Requests received at our Administrative Office at or after the close of regular trading on the New York Stock Exchange (normally, 4:00 p.m. Eastern Time) on a Business Day, or received on a day other than a Business Day, will be processed using Unit Values as of the close of business on the next Business Day. We will confirm all reallocations in writing.

Detrimental Effect of Trading on Unit Values

This contract is intended for long-term investing only and is not intended as a vehicle for frequent trading. Reallocations (transfers) among Subaccounts are strictly limited under the terms of this contract. See Part 5, section titled "Allocations and Transfers." We may refuse any reallocation request for an owner or certain owners if we believe, in our sole discretion, that a specific request or group of requests may have a detrimental effect on Unit Values. We will notify you or your designated representative if your requested reallocation is not made.

Specific Notice Regarding the Use of this Annuity for Market Timing or Frequent Trading

This contract is not designed to serve as a vehicle for trading in response to short-term fluctuations in the market. You cannot engage in intra-day trading of the ETFs available through the Subaccounts. Any person that intends to engage in stale price arbitrage, utilize market timing practices or make frequent transfers for any reason should not purchase this contract.

If we determine, in our sole discretion, that a contract owner is attempting to engage in improper trading, we may revoke their same-day reallocation/transfer privileges and require their trades to be submitted via U.S. Mail or overnight delivery service. We may reject transactions made in violation of our market timing policies. We may modify these restrictions at any time in our sole discretion.

Withdrawals

You may make withdrawals as often as you wish, subject to following rules:


•	Each withdrawal must be at least $250.


•	Your Account Value remaining after a partial withdrawal, including any withdrawal charge, must be at least $20,000. (Please note that you may fully surrender your contract at any time.) This rule does not apply to a withdrawal of your Free Withdrawal Amount, your RMD, or if you have a GLWB Rider.

Unless you request a withdrawal from a specific Investment Option, we will take the withdrawal from your Investment Options, pro rata, in the same proportion their value bears to your total Account Value. For example, if your Account Value is divided in equal 25% portions among four Subaccounts, when you make a withdrawal, 25% of the withdrawal will come from each of your four Subaccounts.

Withdrawals are processed when a request is received in Good Order at our Administrative Office. When you take a withdrawal from a Subaccount, Units are redeemed at the Unit Value as of the next close of the New York Stock Exchange.

The total amount deducted from your Account Value will be the withdrawal amount requested, plus any withdrawal charge that applies (see Part 4, section titled "Withdrawal Charge"). The amount you receive will be the amount you requested, less any applicable tax withholding. Withdrawals are handled differently if you elect a GLWB Rider. See Part 6.

Withdrawals are attributed to your Account Value in the following order: (1) any remaining Free Withdrawal Amount; (2) premiums that are no longer subject to a withdrawal charge and have not yet been withdrawn; (3) premiums subject to a withdrawal charge; and (4) any gain, interest, or other amount that is not considered a premium. Your investment comes out first, beginning with the oldest premium first, then next oldest and so on. Any gain or earnings in your contract come out only after an amount equal to all premiums, and any applicable charges on those premiums, are withdrawn. Please note, however, that for tax purposes, withdrawals prior to the annuity starting date are considered to be gain first. See Part 8.

Examples of withdrawals and the application of a withdrawal charge are located in Appendix B.

Additional restrictions apply to withdrawals if you have a GLWB Rider. See Part 6.

Your Death Benefit is reduced by withdrawals on a proportional basis. See Part 5, section titled "Death Benefit."

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Most of the withdrawals you make before you are 59½ years old are subject to a 10% federal tax penalty. See Part 8.

Free Withdrawal Amount

You may take your Free Withdrawal Amount each Contract Year without paying a withdrawal charge. The Free Withdrawal Amount is the greater of:


•	10% of your Account Value on the date of the withdrawal, minus any partial withdrawals taken during the current Contract Year; or


•	10% of your Account Value at your most recent Contract Anniversary, minus any partial withdrawals taken during the current Contract Year. (During your first Contract Year, this amount is 10% of your initial premium received on the Contract Date.)

If your RMD (based on the fair market value of this contract only as calculated by us) is greater than your Free Withdrawal Amount, we will allow you to take the RMD as your Free Withdrawal Amount, but only once each Contract Year. Because your RMD is based on a calendar year, you should plan in advance to coordinate your RMD with your available Free Withdrawal Amount.

If you do not take the Free Withdrawal Amount in any one Contract Year, you cannot add it, or any unused portion of it, to the next year’s Free Withdrawal Amount.

The Free Withdrawal Amount does not apply to a full surrender. Taking your Free Withdrawal Amount will not reduce the total withdrawal charge applicable to your premium. If you take a subsequent withdrawal for more than the Free Withdrawal Amount or if you surrender the contract, we will assess any applicable withdrawal charge on the amount of your premiums withdrawn, which are not reduced for any Free Withdrawal Amount you have taken.

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The Free Withdrawal Amount is available for withdrawal only. The Free Withdrawal Amount is not available for transfer to another IRA or other qualified contract or account.

Timing of Payment of a Withdrawal or Surrender

We normally send you partial or full withdrawals (or apply your Account Value to the purchase of an Annuity Option) within seven days after receipt of the required form at our Administrative Office. However, we can defer our action for any period during which:


(1)	the New York Stock Exchange has been closed, other than a weekend or holiday, or trading on it is restricted;


(2)	an emergency exists as determined by the SEC so that disposal of securities is not reasonably practicable or it is not reasonably practicable for the Separate Account fairly to determine the value of its net assets; or


(3)	the SEC, by order, permits us to defer action in order to protect persons with interests in the Separate Account.

Assignments

This contract is an IRA and you are not legally permitted to assign, pledge or otherwise transfer the contract. Pledging or assigning an IRA can cause loss of qualified status and result in some or all of the Account Value being included in your income. A 10% federal tax penalty also may apply.

Death Benefit

We will pay the Death Benefit to your properly designated beneficiary if you die before the Annuity Date.

The Death Benefit amount will be the greater of:


1.	the Account Value on the Death Benefit Date; and


2.	your total premiums minus proportionate adjustments for partial withdrawals, including any withdrawal charge. A proportional adjustment means that your Death Benefit will be reduced by the same percentage as your withdrawal bears to your Account Value at the time of withdrawal.

Example of the effect of withdrawals on the Death Benefit:


•	if your Death Benefit is $100,000 and your current Account Value is $80,000,


•	and you take a withdrawal of $10,000,


•	we will reduce your Death Benefit by 12.5% because that is the same percentage that your withdrawal bears to the Account Value at the time of the withdrawal

($10,000 / $80,000);


•	therefore, your Death Benefit is reduced by $12,500.

Because the Account Value at the time of the withdrawal in this example is less than the Death Benefit, the Death Benefit is decreased by a larger dollar amount than the partial withdrawal amount.

This example is for illustrative purposes only and does not predict results.

Your beneficiary generally has a choice of how to receive the Death Benefit.


1.	The beneficiary may take a lump sum. If the beneficiary elects this option, we will pay the Death Benefit to the beneficiary.


2.	The beneficiary may defer for up to five years. If the beneficiary elects this option, we will allow the beneficiary to keep the Death Benefit invested in the available Subaccounts for a period of up to five years. Separate account charges will continue to apply. At the end of five years, the entire amount must be paid to the beneficiary.

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3.	The beneficiary may treat the contract as an inherited IRA. If the beneficiary elects this option, we will allow the beneficiary to keep the Death Benefit amount invested in the available Subaccounts. Separate account charges will continue to apply. The beneficiary must choose to receive the Death Benefit as either:


a)	an immediate annuity with a life contingency; or


b)	substantially equal payments over his or her life expectancy as defined by the Tax Code. The beneficiary may choose the longer of his or her life expectancy or the deceased owner’s life expectancy (both as defined by the Tax Code) if the owner dies after the Required Beginning Date. (For Roth IRAs, the owner is presumed to have died before the Required Beginning Date.)

Distributions must begin by December 31 of the calendar year after the owner’s death; however if the beneficiary is your spouse and has elected this option, distributions may begin at the end of the calendar year in which the owner would have reached age 70½, if later. A spouse also may elect to continue the contract as described below in the section titled “Spousal Continuation.” If the beneficiary fails to make an election within a reasonable time, we may automatically process the claim as if option two were elected.

The following restrictions apply to the inherited IRA contract: (i) the inherited IRA owner may not add premium to the contract; (ii) the Death Benefit available to the beneficiary of the inherited IRA owner is the Account Value on the Death Benefit Date after the death of the inherited IRA owner; and (iii) the beneficiary of the inherited IRA owner will be required to receive the remaining Account Value either in a lump sum, over five years or over the life expectancy of the inherited IRA owner as determined by the Tax Code.

For more information on inherited IRAs, see Part 8, section titled “Inherited IRAs” and IRS Publication 590. You should seek independent tax advice.

If your beneficiary is not a human being, the beneficiary must elect either a lump sum or deferral for up to five years. If the owner is a trust, custodian or other entity, the owner must name itself as the sole beneficiary.

Spousal Continuation

If your sole primary beneficiary is your spouse, the contract may be continued in your spouse’s name as the owner. If spousal continuation is elected, we will increase the continued contract’s Account Value to the same amount that would have been paid to your surviving spouse had he or she taken the Death Benefit as a lump sum distribution. This increase will be added to the Subaccounts you have selected on a pro rata basis. For example, if the Account Value at death was $100,000, but we would have paid out a Death Benefit of $115,000, the surviving spouse’s contract will continue with $115,000 as the Account Value.

All terms and conditions of the contract continue to apply including the withdrawal charge. When the surviving spouse dies, the Death Benefit will be paid to the beneficiary named by the surviving spouse.

A same-sex surviving spouse is recognized as your spouse under the Tax Code and will qualify for the federal tax advantages of spousal continuation.

The survivor of a civil union or domestic partnership is not recognized as your spouse under the Tax Code and the federal tax advantages of spousal continuation are not available. The survivor of a civil union or domestic partnership may elect to continue the contract under its terms. The continuation of the contract by such surviving civil union or domestic partner, however, is treated as an ordinary transfer of ownership and will be a taxable event.

Selecting and Changing Your Beneficiary

You may name one or more beneficiaries as primary or contingent beneficiaries. The Death Benefit will be paid to your primary beneficiaries who are alive at the time of your death. If no primary beneficiary survives your death, then the Death Benefit will be paid to your contingent beneficiaries, if any. If no beneficiary survives your death (primary or contingent) or none has been named, the Death Benefit will be paid to your estate.

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If multiple beneficiaries in either category (primary or contingent) are named, the Death Benefit will be split into equal shares among the beneficiaries in that category who are alive at the time of your death, unless you specify otherwise in your beneficiary designation.

If you die on or after the Annuity Date and before the entire interest in the contract has been distributed, then the rest of the annuity must be distributed to the beneficiary at least as quickly as the method in effect when you died.

You may change any beneficiary by sending the appropriate form in Good Order to the Administrative Office. We may limit the number of beneficiaries you can have at one time. Please consult your financial professional and tax advisor to properly identify your beneficiaries so that the Death Benefit is paid as you intend. Please be sure to name your spouse as your sole primary beneficiary so that spousal continuation of the contract can occur, if that is your intention. You may wish to name a contingent beneficiary in case your spouse dies before you. If the owner is a custodian, the owner must name itself as the sole beneficiary.

Filing Death Claims

To file a death claim, the beneficiary must promptly submit an original certified death certificate and company death claim paperwork that is in Good Order, including the beneficiary's election of how they wish to receive the Death Benefit proceeds. On the date we first receive notice of the owner’s death, we will stop all pending automatic transactions, including rebalancing and systematic withdrawals; however, any money in the STO will be transferred to the Subaccounts according to the owner’s allocation.

During the period from the date of death until we receive all required paperwork in Good Order, the Account Value will remain invested in the Subaccounts as allocated by you at the time of your death. As a result, the Account Value continues to reflect the investment performance of the Subaccounts during this period and will be subject to market fluctuations. Separate account charges will continue to apply.

If there are multiple beneficiaries, after one beneficiary submits death claim paperwork, the Death Benefit will be calculated and the first beneficiary will receive payment according to his or her election. The remaining beneficiaries’ share of the Death Benefit will be invested in the Subaccounts as allocated by you at the time of your death and subject to market fluctuations.

Maturity Date and Annuity Option

Your Annuity Option is available anytime on or after your first Contract Anniversary until the Maturity Date. You may elect your Annuity Option by writing to the Administrative Office any time on or after your first Contract Anniversary and before the Maturity Date. Upon the Maturity Date, you may elect to receive a lump sum of your Account Value, or you may elect an Annuity Option.

An Annuity Option can provide for fixed payments, which may be made monthly, quarterly, semi-annually or annually. For any annuity, the minimum payment must be at least $100. If the minimum monthly payment under a guaranteed Annuity Option would be less than $20, we will pay you a lump sum of your Account Value instead. All Annuity Options are funded through our General Account.

The amount applied toward the purchase of a guaranteed Annuity Option under the contract will be the Account Value less any premium tax. The guaranteed Annuity Options are single life and ten years certain or joint life and ten years certain. These options provide a fixed life income annuity with 10 years of payments guaranteed.

We will also use the Account Value less any premium tax to determine your annuity payments if you select a non-guaranteed Annuity Option with either (i) life contingencies, or (ii) a period certain that provides for fixed payments over ten or more years.

We currently offer the additional Annuity Options listed below; however, we may eliminate or change the non-guaranteed options available at any time:


•	period-certain annuity, which provides for fixed payments for a fixed period. The fixed periods available may vary from time to time and the fixed period selected may not extend past your life expectancy. The amount is

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determined by the period you select. If the Annuitant dies before the end of the period selected, the beneficiary will receive the remaining periodic payments.

•

period-certain life annuity, which provides for fixed payments for at least the period selected and after that for the life of the Annuitant or the lives of the Annuitant and any joint Annuitant under a joint and survivor annuity. The fixed periods available may vary from time to time. If the Annuitant (or the Annuitant and the joint Annuitant under a joint and survivor annuity) dies before the fixed period selected ends, the remaining payments in the fixed period will go to the beneficiary.


•	life only annuity, which provides fixed payments for the life of the Annuitant, or until the Annuitant and joint Annuitant both die under a joint and survivor annuity. Once the Annuitant (or last joint Annuitant) dies, no further payments will be made and no value remains for any beneficiaries.

If you have not already selected a form of Annuity Option, we will contact you prior to your Maturity Date. You can tell us at that time if you would like a lump sum payment, or select the type of annuity you want. If we do not receive your election on or before your Maturity Date, you will automatically receive the single life and ten-year certain Annuity Option guaranteed under the contract.

Annuity Payments

Once payments begin under an Annuity Option, payments will not change. The size of payments will depend on the amount applied to the Annuity Option, the form of Annuity Option you chose and, in the case of an Annuity Option with life contingencies, on the Annuitant's age and sex (where permissible).

If the age or sex of an Annuitant has been misstated, you will receive the benefits that would have been purchased at the correct age and gender. Any overpayments or underpayments made by us will not be charged or credited with interest, unless required by your state. If we have made overpayments because of incorrect information about age or gender, we will deduct the overpayment from the next payment or payments due. We add underpayments to the next payment.

How You Make Requests and Give Instructions

When you write to our Administrative Office, use the address listed in the Glossary of this prospectus. We cannot honor your requests unless they are in proper and complete form. Whenever possible, use one of our printed forms, which may be obtained from our Administrative Office.

Abandoned or Unclaimed Property

Every state has laws that generally provide for payment to the state of unclaimed property, including proceeds of annuity contracts, under various circumstances. This is called escheatment. In addition to the state unclaimed property laws, we may be required to escheat property pursuant to regulatory demand, finding, agreement or settlement. To help prevent escheatment, it is important that you keep your contact information on file with us up to date, including the names, addresses, phone numbers, social security numbers and dates of birth for owners, annuitants, beneficiaries and other payees. Such updates must be communicated in Good Order to our Administrative Office.

Part 6 – Optional Benefits

You may purchase one of the optional GLWB Riders offered with this contract, which provides additional benefits for an additional charge. You may only elect a Rider at the time of application. Benefits under a Rider will replace or supplement the standard contract benefits. Charges for an optional benefit Rider are in addition to the standard contract charges. Be sure you understand the charges. Carefully consider whether you need the benefit and whether it is appropriate for your particular circumstances. Also consider whether you can buy the benefit more cheaply as part of the variable annuity or with a separate contract.

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Guaranteed Lifetime Withdrawal Benefit

Each Guaranteed Lifetime Withdrawal Benefit (GLWB) is an optional Rider you may purchase for an additional charge. You may select the Individual GLWB Rider or the Spousal GLWB Rider.

The GLWB Rider guarantees lifetime payments for you (or you and your covered spouse if you elect the Spousal GLWB Rider) regardless of how your investments perform, as long as the Rider is in effect. You are the covered person under the Individual GLWB Rider. You and your spouse are the covered persons under the Spousal GLWB Rider. If you take Nonguaranteed Withdrawals, as explained below, your Benefit Base will decrease immediately, your lifetime payments may decrease and the Rider may terminate.

Lifetime Payout Amount (LPA)

The LPA is the amount we guarantee you can receive each calendar year for your lifetime (or for as long as either you or your covered spouse is alive if you elect the Spousal GLWB Rider). You are eligible to begin receiving your LPA on the LPA Eligibility Date.

For the Individual GLWB Rider, the LPA Eligibility Date is the earlier of the following:


•	January 1^st after the calendar year in which you turn age 60 (if you turn age 60 on January 1^st, your LPA will be available beginning on that day); or


•	the Contract Date, if you are age 60 or older at the time you purchase your contract. The LPA available during the calendar year in which you purchase your contract will be prorated for the portion of the calendar year remaining.

For the Spousal GLWB Rider, the LPA Eligibility Date is the earlier of the following:


•	January 1^st after the calendar year in which the younger of you or your spouse turns age 60 (if the younger of you or your spouse turns age 60 on January 1^st, your LPA will be available beginning on that day); or


•	the Contract Date, if the younger of you or your spouse is age 60 or older at the time you purchase your contract. The LPA available during the calendar year in which you purchase your contract will be prorated for the portion of the calendar year remaining.

The LPA is equal to the applicable Withdrawal Percentage multiplied by the Benefit Base on January 1^st each year on or after the LPA Eligibility Date. For the Spousal GLWB Rider, that amount is then multiplied by 90% (this 90% is called the Spousal Factor).

Withdrawal Percentage - The applicable Withdrawal Percentage is determined by the following formula:

A + B + C, where:


(A)	is the Age Based Percentage stated on the chart below:



Age*	Age Based Percentage
60-64	4.00%
65-69	4.50%
70-74	5.00%
75 and above	5.50%

*The Age Based Percentage is determined by your age (or the age of the younger of you or your spouse if you have elected the Spousal GLWB Rider). The Age Based Percentage is locked in on the date of the first withdrawal from the contract on or after the LPA Eligibility Date.


(B)	is the cumulative Deferral Percentage. The cumulative Deferral Percentage begins at zero and increases by 0.10% for each complete calendar year that you do not take a withdrawal.


(C)	is a First-Year Deferral Percentage stated on the chart below:

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Contract Date	First-Year Deferral Percentage
January 1-March 31	0.075%
April 1-June 30	0.050%
July 1-September 30	0.025%
October 1-December 31	0.000%

The First-Year Deferral Percentage is a one time addition to your Withdrawal Percentage that varies based on your Contract Date, provided you do not take a withdrawal in the calendar year containing the Contract Date.

Benefit Base - Your initial Benefit Base is equal to your initial premium received by us on the Contract Date. Your Benefit Base will be adjusted as follows:


1.	On each Contract Anniversary, your Benefit Base will be compared to your Account Value and if the Account Value is greater than the Benefit Base, we will step up your Benefit Base to equal the Account Value.


2.	If you take a Nonguaranteed Withdrawal, we will immediately decrease your Benefit Base as described in the section titled “Nonguaranteed Withdrawal” below.


3.	On the date we receive an additional premium during the first Contract Year, we will immediately increase your Benefit Base by the amount of the additional premium. Additional premiums received after the first Contract Year will not increase your Benefit Base. They will, however, increase the Account Value, which is used to determine if a step up applies on the next Contract Anniversary.

The Benefit Base is used only to calculate the LPA and Rider charge. The Benefit Base is not available for withdrawal or payable as a death benefit.

If you (or the younger of you and your spouse if you have elected the Spousal GLWB Rider) have reached the LPA Eligibility Date on the Contract Date, your LPA for the calendar year that contains the Contract Date will be prorated for the portion of the calendar year remaining. The factor used to prorate the LPA is the number of days remaining in the calendar year (not including the Contract Date) divided by the number of days in the calendar year.

If you withdraw less than the LPA in any calendar year, you cannot carry over or add the remaining LPA to withdrawals made in future years.

If your RMD is greater than the LPA for any calendar year, the LPA will be set equal to the RMD for that calendar year as long as calendar year withdrawals are limited to the RMD.

Nonguaranteed Withdrawal

Before your LPA Eligibility Date, a Nonguaranteed Withdrawal is the total amount of any withdrawal, including any withdrawal charge.

On or after your LPA Eligibility Date, a Nonguaranteed Withdrawal is all or a portion of any withdrawal, including any withdrawal charge, that, when combined with your total withdrawals for that calendar year, exceeds your LPA.

If you take a Nonguaranteed Withdrawal, your Benefit Base will immediately decrease by the adjusted Nonguaranteed Withdrawal amount. The adjusted Nonguaranteed Withdrawal amount is defined as the Nonguaranteed Withdrawal amount multiplied by the greater of 1.0 and the ratio of Benefit Base to Account Value (Benefit Base divided by Account Value), where both values are determined immediately before the Nonguaranteed Withdrawal. The Account Value immediately before the Nonguaranteed Withdrawal means that the Account Value will be reduced by any remaining LPA prior to the calculation.

Taking Nonguaranteed Withdrawals could reduce your future benefits by more than the dollar amount of the Nonguaranteed Withdrawals.

The example below demonstrates how a Nonguaranteed Withdrawal affects the Benefit Base, using the following assumptions:


•	Individual GLWB in effect

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•	Benefit Base = $100,000


•	Account Value = $85,000


•	LPA = $5,000


•	One withdrawal is taken during the calendar year = $7,000


•	Withdrawal taken after LPA Eligibility Date


•	No withdrawal charge applies.

The Nonguaranteed Withdrawal amount is $2,000, which is equal to your total calendar year withdrawals ($7,000) minus your LPA ($5,000). The adjusted Nonguaranteed Withdrawal is $2,500:

$2,500 = $2,000 (Nonguaranteed Withdrawal amount) x the greater of 1.0 or [$100,000 (Benefit Base immediately before the Nonguaranteed Withdrawal) / $80,000 (Account Value immediately before the Nonguaranteed Withdrawal)]

Your Benefit Base will be reduced by $2,500 to $97,500.

Other Important Facts about Withdrawals


•	You will not receive the intended benefit of this Rider if you take Nonguaranteed Withdrawals. Nonguaranteed Withdrawals can have a significant negative effect on your Benefit Base and your LPA.

•

A withdrawal charge may apply. If you withdraw more than your Free Withdrawal Amount (10% of the Account Value in any Contract Year) but the withdrawal does not exceed your LPA, any applicable withdrawal charge will be waived. If you withdraw more than the Free Withdrawal Amount and any portion of the withdrawal is a Nonguaranteed Withdrawal, a withdrawal charge, if any, will be applied on the entire amount that is greater than the Free Withdrawal Amount. See Part 4, “Withdrawal Charge” and Part 5, “Withdrawals." Following is an example of how a withdrawal charge may apply:

Assume:

Individual GLWB in effect

Premium: $40,000

Account Value before withdrawal: $18,000

Withdrawal charge percentage applicable to premium: 6%

Lifetime Payment Amount: $ 2,000

Case 1: Owner requests withdrawal of $2,000 (LPA)

The Free Withdrawal Amount is calculated as $18,000 x 10% = $1,800. The $2,000 requested withdrawal is greater than the remaining Free Withdrawal Amount; however, it does not exceed the LPA. No withdrawal charge will apply.

Case 2: Owner requests withdrawal of $2,500

The Free Withdrawal Amount is $1,800. Since the requested withdrawal exceeds the LPA, withdrawal charges will apply. After applying the withdrawal first to the Free Withdrawal Amount, this leaves $700 ($2,500 - $1,800), which will be subject to a withdrawal charge of $42 ($700 x 6%).


•	Withdrawals must be taken pro rata from your Investment Options. You cannot make a withdrawal from specific Investment Options.


•	You may not take a withdrawal on your Contract Date.


•	If you request a withdrawal, we will withdraw the total amount you requested from your Account Value, however the amount you receive will be net of tax withholding and withdrawal charge, if applicable.


•	You must use our withdrawal form to request withdrawals. Contact our Administrative Office to obtain the form.

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GLWB Rider Charge

The GLWB Rider charge is a daily charge taken from the Account Value in your Subaccounts. The charge is in addition to the separate account charges for the contract and reduces your Unit Values. The charge varies depending on which GLWB Investment Strategy you choose. The following table shows the effective annual rates for the Rider charge:



GLWB Investment Strategy	Current GLWB Charge	Current GLWB Charge with Total Separate Account Expenses
Strategy 1 – Basic Allocation	0.65%	2.55%
Strategy 2 – Self Style Allocation	0.85%	2.75%

We may increase the annual charge for the GLWB Rider up to the maximum of 1.50%. The maximum GLWB charge with total separate account charges is 3.40% for either GLWB Investment Strategy.

If we do increase the charge, we will give you prior written notice of each increase. If you do not wish to accept an increase, you may elect to either


•	cancel the Rider; or


•	continue the Rider with a reduction in the Withdrawal Percentage as determined by us, effective at the time of the Rider charge increase (may not be available in CA and CT). The maximum reduction in the Withdrawal Percentage is 1.00%, regardless of the number of Rider charge increases.

We do not deduct the Rider charge during the Guaranteed Payment Phase.

The GLWB Rider charge is the same for the Individual GLWB Rider and the Spousal GLWB Rider. The LPA is adjusted downward – by the Spousal Factor of 90% – for the Spousal GLWB Rider instead of an additional charge.

GLWB Investment Strategies

If you purchase a GLWB Rider, you must allocate your premium to only one of the two GLWB Investment Strategies described below. Once you select a GLWB Investment Strategy, you cannot switch to another GLWB Investment Strategy. As a result of the GLWB Rider investment restrictions, you will always have some degree of exposure to the market. You cannot eliminate this exposure even during periods of market volatility. These GLWB Investment Strategies are designed for long-term investors seeking withdrawal guarantees. (Note that the Subaccounts available in the GLWB Investment Strategies are also available without the Rider.)

The GLWB Investment Strategies are intended in part to reduce the risk of investment losses that could require us to use our own assets to make payments under the GLWB Rider. The GLWB Investment Strategies are designed to lower the volatility of returns from your Subaccounts. Subaccounts that are available without limitation (if the GLWB Rider is not selected) may offer the potential for higher returns. Before you select the GLWB Rider, you and your financial representative should carefully consider whether the GLWB Investment Strategies available with the Rider meet your investment objectives and risk tolerance.

GLWB Investment Strategy 1 – Basic Allocation

You must allocate your premium according to one of the three models: Blend, Growth or Value. You may reallocate from one model to another, as discussed below.



Subaccount	Model 1 - Growth	Model 2 - Blend	Model 3 - Value
iShares Core S&P 500 ETF	30%	40%	30%
iShares Core S&P Mid-Cap ETF	10%	10%	10%
iShares Core S&P Small-Cap ETF	5%	5%	5%
iShares International Treasury Bond ETF	5%	5%	5%
iShares S&P 500 Growth ETF	10%
iShares S&P 500 Value ETF			10%
Vanguard Developed Markets Index Fund, ETF Shares	5%	5%	5%
Vanguard Total Bond Market Index Fund, ETF Shares	35%	35%	35%

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GLWB Investment Strategy 2 – Self Style Allocation

You may select one or more of the Subaccounts in two or more groups, as long as your allocations add up to 100% and are within the minimum and maximum allocation percentages indicated for each group.



Group 1 Core Fixed Income Minimum 35% Maximum 65%	Group 2 Core Equity Minimum 35% Maximum 65%	Group 3 Non-Core Fixed Income Minimum 0% Maximum 30%	Group 4 Non-Core Equity Minimum 0% Maximum 30%	Group 5 International/Alternative Minimum 0% Maximum 15%
iShares Core U.S. Aggregate Bond ETF	iShares Core S&P 500 ETF	iShares iBoxx $ High Yield Corporate Bond ETF	iShares Core S&P Mid-Cap ETF	iShares International Treasury Bond ETF
iShares Intermediate-Term Corporate Bond ETF	Vanguard Dividend Appreciation Index Fund, ETF Shares	iShares TIPS Bond ETF	iShares Core S&P Small-Cap ETF	Vanguard Developed Markets Index Fund, ETF Shares
Vanguard Total Bond Market Index Fund, ETF Shares	Vanguard Large-Cap Index Fund, ETF Shares	Vanguard Intermediate-Term Corporate Bond Index Fund, ETF Shares	iShares S&P 500 Growth ETF	Vanguard Emerging Markets Stock Index Fund, ETF Shares
		Vanguard Short-Term Bond Index Fund, ETF Shares	iShares S&P 500 Value ETF	Vanguard Real Estate Index Fund, ETF Shares
		Fidelity VIP Government Money Market Portfolio	Vanguard Mega Cap Index Fund, ETF Shares

For more information about these Subaccounts, including information relating to their investment objectives and policies, and the risks of investing, see Part 3, as well as the Fund prospectuses. You can obtain a copy of the Fund prospectuses by contacting our Administrative Office listed in the Glossary. You should read the Fund prospectuses carefully before investing.

In addition to your allocation to one of the two GLWB Investment Strategies, you may invest some or all of your initial premium received by us on the Contract Date in the STO. Transfers from the STO to the Subaccounts must be according to GLWB Investment Strategy and allocation you have selected. See Part 3, section titled “The Fixed Account” for more information about the STO.

Subject to required approvals by federal and state authorities, we may add, remove, change, close, substitute or limit investment in the GLWB Investment Strategies or the Subaccounts at any time.

Allocations and Transfers for the GLWB

In addition to the allocation and transfer rules under the contract (See Part 5, section titled "Allocations and Transfers"), the following additional rules and limitations apply to your allocations and transfers:


•	Your one allocation allowed on the contract must meet the requirements of one of the two GLWB Investment Strategies.


•	Your Account Value will be automatically rebalanced to your allocation percentages each contract quarter.


•	You cannot move from one GLWB Investment Strategy to another.


•	In GLWB Investment Strategy 1, you can reallocate your Account Value invested in one model to another model. The reallocation will reset your Account Value to the required percentages for the new model. Each reallocation triggers the 60-day waiting period before you can make another reallocation.


•	In GLWB Investment Strategy 2, you can reallocate your Account Value invested in Strategy 2 as long as your new allocation is within the minimum and maximum allocation percentages for each group. Each reallocation triggers the 60-day waiting period before you can make another reallocation.

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Your financial professional or a third party may offer you asset allocation or investment advisory services related to this annuity contract or Rider for an additional fee to be deducted from your contract. Such fees are considered withdrawals and could cause a Nonguaranteed Withdrawal. Therefore, if you purchase a GLWB Rider, we do not recommend using this annuity contract to pay for such services.

Withdrawal Protection for Required Minimum Distributions

If your contract is a traditional IRA or a SEP IRA, you may be required to withdraw money in order to satisfy minimum distribution requirements imposed by the Tax Code after you reach age 70½.

We will calculate the RMD for this annuity contract based on its prior calendar year-end fair market value. We do not consider your other assets or distributions in making this calculation. This is the RMD protected under the GLWB Riders, except if you elect the spousal Rider and your spouse is more than 10 years younger than you. In that case, due to your age difference, you will be required to take your RMD for this annuity contract before the LPA Eligibility Date; if you take your RMD from this contract’s Account Value, each withdrawal will be a Nonguaranteed Withdrawal until the LPA Eligibility Date is reached. You are solely responsible for meeting all requirements of the Tax Code.

After the LPA Eligibility Date, you may take the greater of your LPA or your RMD each calendar year. In the year you turn 70½ the Tax Code provides that you may take your first RMD prior to April 1st of the following calendar year; however, with a GLWB Rider, you must take your first annual RMD in the calendar year you turn age 70½ in order to avoid a potential Nonguaranteed Withdrawal.

We may make any changes we deem necessary to comply with the tax laws. We are not liable for any tax consequences you incur arising from this contract or your obligations under the Tax Code. You should discuss these matters with your tax advisor prior to electing a GLWB Rider.

Continuation of the Spousal GLWB at Owner’s Death

Married spouses – If your covered spouse is recognized under the Tax Code, including same-sex spouses, he or she will have the option to continue the contract and the GLWB Rider at the time of your death. Your covered spouse will become the owner and Annuitant of the contract and all terms and conditions of the contract continue to apply. See Part 5, section titled “Spousal Continuation.”

Civil Union or Domestic Partners – for civil union or domestic partners as defined by state law, the covered partner may continue to receive the LPA under the terms of the Rider. Due to federal tax laws, however, not all terms of the contract can be applied. If the covered partner wishes to continue receiving the LPA, he or she must elect to treat the contract as an inherited IRA. See Part 5, section titled “Death Benefit.” All provisions of the contract and the GLWB Rider still apply, except (i) the covered partner must take at least the RMD each calendar year (caution: this may cause a Nonguaranteed Withdrawal if the LPA Eligibility Date has not been reached); (ii) the covered partner cannot add premium to the contract; (iii) the Death Benefit available to the beneficiary of the covered partner is limited to the Account Value on the Death Benefit Date; and (iv) the beneficiary of the covered partner will be required to receive the remaining Account Value either in a lump sum, over five years or over the life expectancy of the covered partner as determined by the Tax Code. These restrictions are required by the Tax Code.

Guaranteed Payment Phase

The Guaranteed Payment Phase begins on or after the LPA Eligibility Date if either:


•	Before the Maturity Date, the Account Value reduces to zero (other than as a result of a Nonguaranteed Withdrawal or the voluntary election of an Annuity Option).


•	On the Maturity Date, you elect to continue to receive annual payments equal to the then current LPA through a life only Annuity Option (or joint life if you have elected the Spousal GLWB Rider and both you and your covered spouse are still living.) If you do not elect the LPA Annuity Option, you will automatically receive a single life and 10-year certain Annuity Option under your Contract.

When the contract begins the Guaranteed Payment Phase, we will send you a written notice and any remaining LPA that you have not taken during the current calendar year. (If your contract enters the Guaranteed Payment Phase on the Maturity Date, we will set your Account Value to zero.) Beginning the next calendar year, and in each

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calendar year during the Guaranteed Payment Phase, you will receive your LPA. The Guaranteed Payment Phase will continue until the death of the owner (or owner and covered spouse if the Spousal GLWB is elected).

Once the Guaranteed Payment Phase begins, all other rights, benefits, values and charges under the contract and the GLWB Rider will terminate, except those described in this section and in the "Cancellation and Termination of Rider" section below. The Guaranteed Payment Phase will end if the Rider terminates. See "Cancellation and Termination of Rider" section below. We should be notified immediately upon the death of the owner (or covered spouse if the Spousal GLWB is elected).

Cancellation and Termination of Rider

You may cancel the Rider during the first 45 days of each Contract Year beginning on the fifth Contract Anniversary. Upon termination of the Rider, the Rider charge will no longer be assessed. All other charges will remain in effect.

This Rider will terminate automatically on the earliest of the following dates:


1.	for the Individual GLWB Rider, the date you die, and for the Spousal GLWB Rider, the date the later of you or your covered spouse dies;


2.	the date the Account Value equals zero due to a Nonguaranteed Withdrawal;


3.	the date that ownership of the contract or Rider is transferred or the contract, Rider or any benefits under the contract or Rider are assigned unless the new owner assumes full ownership of the contract and is essentially the same person as the current owner (e.g. a change to a court appointed guardian representing the owner during the owner’s lifetime) or the new owner is a covered person;


4.	on the Maturity Date, unless you elect to receive your LPA through a life only Annuity Option, or joint life only Annuity Option if you have elected the Spousal GLWB Rider and your covered spouse is still living;


5.	the date you voluntarily elect an Annuity Option under the contract;


6.	the date you cancel the GLWB Rider; or


7.	the date you surrender the contract.

Once cancelled or terminated, this Rider may not be reinstated.

Additional Rules

The following additional rules apply if you elect a GLWB Rider:


•	You must be between 45 and 80 years old on the Contract Date in order to elect the Individual GLWB Rider. In order to elect the Spousal GLWB Rider, both you and your spouse must be between 45 and 80 years old on the Contract Date.


•	The Company may refuse to accept additional premiums on a nondiscriminatory basis at any time.


•	We may require proof that you (or your covered spouse) are living at any time.


•	You cannot switch from an Individual GLWB Rider to a Spousal GLWB Rider or vice versa.


•	Income Plus Withdrawal Program is not available.


•	Choices Plus Required Minimum Distribution Program is not available.


•	Customized Asset Rebalancing Program is not available.


•	Systematic withdrawal of RMD only is not available.

Additional Rules that Apply to the Spousal GLWB Rider


1.	Only your legal spouse (as defined by applicable state law) on the Contract Date may be named as a covered person under the Spousal GLWB Rider.


2.	You must name your spouse as your sole primary beneficiary.


3.	You cannot add or change a spouse as a covered person.


4.	If your marriage is terminated (such as by divorce or dissolution) or your spouse dies, your spouse is automatically removed as a covered person. If you subsequently remarry, you cannot add the new spouse.


5.	You must provide us with notice of the divorce or termination of marriage.


6.	Once the spouse is removed as a covered person, lifetime withdrawals under the Spousal GLWB Rider are no longer guaranteed for the lives of both you and your spouse. (If a spouse is removed, you can name a new beneficiary to receive the Death Benefit.)


7.	If a spouse is removed and is no longer a covered person, the LPA Eligibility Date and the Age Based Percentage are still based on the younger of you or your (now removed) spouse.

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8.	If a spouse is removed and is no longer a covered person, the Spousal Factor of 90% will continue to apply to your LPA calculation.

Should You Purchase the GLWB Rider?

The addition of a GLWB Rider to your annuity contract may not be right for you. For example:


•	if you are purchasing the GLWB Rider to meet income needs, you should consider whether an immediate annuity is better suited to your situation;


•	if you do not expect to take withdrawals while this Rider is in effect, you do not need a GLWB Rider because the benefit is accessed through withdrawals; or


•	if you are likely to need to take withdrawals prior to your LPA Eligibility Date or in an amount that is greater than the LPA or RMD for this contract only, you should carefully evaluate whether a GLWB Rider is appropriate, due to the negative effect of Nonguaranteed Withdrawals on your Benefit Base.


•	If your spouse is 10 or more years younger than you, the Spousal GLWB Rider may not be suitable for you.

Benefits paid may not exceed the charges associated with the Rider depending on how long the covered person lives.

You should consult with your tax advisor and financial representative and carefully consider your alternatives before deciding if a GLWB Rider is suitable for your needs.

Examples

Please see Appendix C for hypothetical examples that illustrate how the GLWB Riders work.

Part 7 – Voting Rights

How Fund Shares Are Voted

Integrity Life is the legal owner of the Fund shares held by the Separate Account. As a shareholder, we have the right to vote on certain matters with respect to the Funds. Among other things, we may vote to elect the Fund’s Board of Directors, to ratify the selection of independent auditors, and on any other matters described in a current prospectus or statement of additional information for each Fund, or any matter requiring a vote by shareholders under the 1940 Act.

Whenever a shareholder vote is taken, we will give you the opportunity to tell us how to vote the number of shares attributable to the Units in your contract. We will send you proxy materials and a form for giving us voting instructions.

If we do not receive instructions in time from all contract owners, we will vote shares for which we have not received instructions in the same proportion as we vote shares for which we have received instructions. As a result of this proportional voting, the vote of a small number of contract owners may determine the outcome of a proposal. We may vote any shares that we are entitled to vote directly, because of amounts we have accumulated in our Separate Account, as we deem appropriate. If the federal securities laws or regulations or interpretations of them change so that we are permitted to vote shares in our own right or to restrict contract owner voting, we may do so.

Fund shares are sold to investors other than us. Therefore, the shares voted by all shareholders will dilute the effect of voting instructions received by us from our contract owners.

How We Determine Your Voting Shares

You vote only on matters concerning the Funds that correspond to the Subaccounts in which you are invested on the record date set by the Trust. We determine the number of shares you vote by dividing your Account Value in each Subaccount by the total value of assets in the Subaccount multiplied by the number of shares in the Subaccount.

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Part 8 – Tax Aspects of the Contract

Tax Status of the Contract

This contract is only available as a traditional IRA, Roth IRA, or SEP IRA. If you were able to purchase this contract as other than an IRA, the contract would not satisfy the diversification requirements under federal tax law to be treated as an annuity contract for federal income tax purposes, and you would be currently taxed on your investment and gain.

Variable annuity contracts (other than certain pension and qualified retirement plan contracts, including IRAs) are generally not treated as annuities for federal income tax purposes, and thus lose their tax-deferred character, if they do not satisfy certain diversification requirements set forth in Section 817(h) of the Tax Code. Investing in the ETF shares that are "publicly available," i.e., that can be purchased directly without purchasing a variable annuity or life insurance contract, is incompatible with these requirements. Accordingly, standing alone, the contract would not be treated as an annuity contract for federal income tax purposes. However, we believe that an individual purchasing a contract as an IRA will not be taxed currently on the investment and gain.

Contracts that qualify as IRAs are not subject to restrictions against investing in publicly available investments if the contracts meet certain requirements set forth by the IRS. We believe this contract will meet those requirements, although there is no guarantee that this will be the case. If this contract is not maintained as an IRA, the taxes on the contributions and any income or gain on the investments will not be deferred (or for a Roth IRA, taxes on the income and gain will not be free from federal income tax) and the tax treatment will be uncertain.

Types of IRAs

Traditional IRAs

Section 408 of the Tax Code permits eligible individuals to contribute to an individual retirement program known as an IRA. An IRA can be in the form of a trust or custodial account or an annuity. An individual may make annual contributions to an IRA of up to the lesser of the limit specified in the Tax Code ($6,000 for 2019 and subject to annual cost-of-living adjustments for later years) or 100% of compensation includible in the individual's gross income. For an individual age 50 or older, the limit is increased by $1,000. The contributions may be deductible in whole or in part, depending on the individual's income and whether the individual or spouse participates in an employer sponsored retirement plan. Contribution limits set by the Tax Code are cumulative limits that apply to all traditional and Roth IRAs owned by an individual. Distributions from another IRA or certain eligible employer plans may be transferred or "rolled over" into an IRA on a tax-deferred basis without regard to these limits. Amounts in the IRA are taxed when distributed from the IRA at ordinary income tax rates. A 10% penalty tax (discussed below) generally applies to distributions made before age 59½, subject to certain exceptions. IRAs have minimum distribution rules (also discussed below) that govern the timing and amount of required distributions from traditional IRAs.

SEP IRAs

Section 408 of the Tax Code permits SEP IRAs, which are a type of IRAs that allows employers to contribute to IRAs on behalf of their employees. Employer contributions made to an employee's SEP IRA cannot exceed the lesser of (1) 25% of the employee's compensation, and (2) a limit specified in the Tax Code ($56,000 for 2019, subject to annual cost-of-living adjustments for later years). Distributions from SEP IRAs are subject to the same restrictions and rules that apply to IRA distributions.

Roth IRAs

Section 408A of the Tax Code permits certain eligible individuals to make non-deductible contributions to a Roth IRA in cash or as a rollover or transfer from another Roth IRA or other IRA. Only individuals with income below certain amounts specified in the Tax Code may contribute to a Roth IRA. An eligible individual may make annual contributions to a Roth IRA of up to the lesser of the limit specified in the Tax Code ($6,000 for 2019 and subject to annual cost-of-living adjustments for later years) or 100% of compensation includible in the individual's gross income. For an individual age 50 or older, the limit is increased by $1,000. Contribution limits set by the Tax Code are cumulative limits that apply to all traditional and Roth IRAs owned by an individual. A rollover from, or conversion of, an IRA to a Roth IRA is generally subject to tax on the full amount rolled over or converted.

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You should consult a tax advisor before converting amounts to a Roth IRA or combining any converted amounts with any other Roth IRA contributions, including any other conversion amounts from other tax years.

Distributions from a Roth IRA generally are not taxed, except that, once aggregate distributions exceed contributions to the Roth IRA, income tax and a 10% penalty tax (discussed below) may apply to distributions made (1) before age 59 1/2 (subject to certain exceptions), or (2) during the five taxable years starting with the year in which the first contribution is made to the Roth IRA or, in general, any other Roth IRA.

Rollovers and Transfers

In many circumstances you may move money tax-free from one IRA to another IRA or from other qualified plans, such as a 401(k) plan or 403(b) tax sheltered annuities, to an IRA by means of a direct rollover or a transfer. You may roll over, directly or indirectly, any eligible rollover distribution. An eligible rollover distribution is defined generally as any distribution of all or part of the balance from a qualified plan, except you cannot roll over the following taxable distributions from a plan or IRA:


•	any distribution that is part of a series of substantially equal payments made over your life expectancy;


•	any distribution made for a specified period of 10 years or more;


•	any distribution that is an RMD; or


•	any hardship distribution.

Also, you cannot roll over from a SIMPLE IRA during the first two years of participation in the SIMPLE IRA and a roll over of an after-tax contribution that had been made to a Roth IRA may be a taxable event.

You can make only one rollover from an IRA to another (or the same) IRA in any 12-month period, regardless of the number of IRAs you own. The limit will apply by aggregating all of an individual’s IRAs, including SEP and SIMPLE IRAs as well as traditional and Roth IRAs, effectively treating them as one IRA for purposes of the limit. Trustee-to-trustee transfers between IRAs are not limited. Rollovers from traditional IRAs to Roth IRAs (“conversions”) are not limited.

Tax laws are complex and your individual situation is unique. You should always consult a tax advisor before you move or attempt to move assets between any IRA or qualified plan and another qualified contract or plan.

Early Distributions

Premature distributions are subject to an additional penalty tax equal to 10% of the amount of any payment from your IRA that is includible in your income. This penalty is in addition to ordinary income tax.

Some distributions will be exempt from the additional federal tax. There is an exception to this 10% additional federal tax for:

1) distributions made on or after the date you (or the Annuitant as applicable) reach age 59 ½;


2)	distributions following your death or disability (or the Annuitant as applicable) (for this purpose “disability” is defined in Code Section 72(m)(7));


3)	distributions paid in series of substantially equal payments made annually (or more frequently) for your life (or life expectancy) or joint lives (or life expectancies) of you and designated beneficiary;

4) distributions made to you after separation from service after attaining age 55 (does not apply to IRAs);


5)	distributions made to you to the extent such distributions do not exceed the amount allowable as a deduction under Code Section 213 to you for amounts paid during the taxable year for medical care (determined without regard to whether you itemize deductions for such taxable year);


6)	distributions to an alternate payee pursuant to a qualified domestic relations order (within the meaning of Code Section 414(p)(1));


7)	distributions from an IRA for the health insurance (as described in Code Section 213)(d)(1)(D)) for you and your spouse and dependents if you have received unemployment compensation for at least 12 weeks (this exception will no longer apply after you have been re-employed for at least 60 days);

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8)	distributions from an IRA made to you, to the extent such distributions do not exceed your qualified higher education expenses (as defined in Code Section 72(t)(7)) for the tax year;


9)	distributions from an IRA which are qualified first-time homebuyer distributions (as defined in Code Section 72(t)(8));


10)	distributions made to a reservist called to active duty after September 11, 2001, for a period in excess of 179 days (or for an indefinite period), from IRAs or amounts attributable to elective deferrals under a 401(k) plan made during such active period; and


11)	distributions made on account of an IRS levy upon a qualified contract.

With respect to 3) above, if the series of substantially equal periodic payments is modified (other than by reason of death or disability) before the close of the 5-year period beginning with the date of the first payment and after you attain age 59 ½, or before you attain age 59 ½, then the tax for the year of the modification is increased by the 10% additional federal tax, plus interest for the tax years in which the exception was used. You should consult with your tax adviser before taking any partial withdrawals from your Contract.

Required Minimum Distributions (RMD)

For traditional and SEP IRAs, RMDs generally must commence no later than April 1 of the calendar year following the calendar year in which the owner reaches age 70½ . The distribution required by April 1 is the distribution required for the year in which the owner actually turns 70½ years old. You must take distributions for each calendar year after the year the owner turn age 70½ by December 31 of that year. The amount of the RMD is based on the prior year-end fair market value of your contract.

If your contract provides an additional benefit, such as the optional GLWB Rider, the fair market value of your contract may increase by the actuarial present value of the benefit. Therefore, the amount of the RMD you must take may increase.

If you have more than one IRA, the distributions required by the Tax Code for all IRAs in the aggregate may be met by taking distributions from one or more of your IRAs. Please note, however, that only the RMD as defined in the Glossary (for this contract only one time each Contract Year) is protected from a withdrawal charge (see Part 5, section titled “Free Withdrawal Amount”) and from being a Nonguaranteed Withdrawal if you have a GLWB Rider (See Part 6, section titled “Withdrawal Protection for Required Minimum Distributions.)

Failure to comply with the RMD rules applicable to qualified contracts may result in the imposition of an excise tax. This excise tax generally equals 50% of the amount by which an RMD exceeds the actual distribution from the contract.

Roth IRAs do not require distributions at any time prior to the owner's death.

Inherited IRAs

The death benefit paid under this contract may be extended by the beneficiary as an inherited IRA. (However, the contract cannot be initially issued as an inherited IRA.) This occurs if, after the death of the owner, the owner's beneficiary directs that the death proceeds be titled as an inherited IRA. See Part 5, section titled “Death Benefit.” The owner's beneficiary of the original IRA contract will become the inherited IRA owner and may name his or her own beneficiary in the event of death.

The inherited IRA owner may invest in the Subaccounts then available under the contract. Separate account charges will continue to apply. The inherited IRA owner must take RMDs beginning on or before December 31 of the calendar year after the original owner’s death. If the beneficiary is a spouse and has elected this option, distributions may begin at the end of the calendar year in which the owner would have reached age 70½, if later.

If the original owner dies before the Required Beginning Date, the inherited IRA owner must take RMD over his or her life expectancy as defined by the Tax Code. If the owner dies after the Required Beginning Date, the inherited IRA owner may choose the longer of his or her life expectancy or the deceased owner’s life expectancy, both as defined by the Tax Code. (For Roth IRAs, the owner is presumed to have died before the Required Beginning Date.)

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The following chart summarizes the date when RMDs must begin and the life used to measure the RMDs:



Death of Owner	Spouse	Nonspouse
Before Required Beginning Date	Distributions must begin by the later of (i) 12/31 of year after the calendar year of owner’s death, or (ii) 12/31 of the year when the deceased owner would have reached age 70½. RMD based on beneficiary life expectancy.	Distributions must begin by 12/31 of year after the calendar year of owner’s death. RMD based on beneficiary life expectancy.
After Required Beginning Date (Traditional and SEP IRAs only)	Distributions must begin by 12/31 of year after the calendar year of owner’s death RMD may be based on longer of the owner’s or beneficiary’s life expectancy.	Distributions must begin by 12/31 of year after the calendar year of owner’s death RMD may be based on longer of the owner’s or beneficiary’s life expectancy.

The following restrictions apply to the inherited IRA contract: (i) the inherited IRA owner may not add premium to the contract; (ii) the Death Benefit available to the beneficiary of the inherited IRA owner is the Account Value on the Death Benefit Date after the death of the inherited IRA owner; (iii) the beneficiary of the inherited IRA owner will be required to receive the remaining Account Value either in a lump sum, over five years or over the life expectancy of the inherited IRA owner as determined by the Tax Code.

A tax penalty applies if the inherited IRA owner fails to take the RMD. The tax penalty equals 50% of the excess of the RMD over the amount actually withdrawn from the inherited IRA during the calendar year.

For more information on inherited IRAs, see IRS Publication 590. Seek independent tax advice.

Federal and State Income Tax Withholding

We may be required to withhold federal income taxes on all distributions unless the eligible recipients elect not to have any amounts withheld and properly notify us of that election.

Certain states have indicated that pension and annuity withholding will apply to payments made to their residents. Generally, an election out of federal withholding will also be considered an election out of state withholding. For more information concerning a particular state, call our Administrative Office listed in the Glossary.

Tax Status of the Company

Under existing federal income tax laws, we do not pay tax on investment income and realized capital gains of the Separate Account. We do not anticipate that we will incur any federal income tax liability on the income and gains earned by the Separate Account. The Company, therefore, does not impose a charge for federal income taxes. If federal income tax law changes and we must pay tax on some or all of the income and gains earned by the Separate Account, we may impose a charge against the Separate Account to pay the taxes. We can also set up reserves for taxes. We receive a tax deduction for dividends received by the Funds.

Transfers Among Subaccounts

There will not be any current tax liability if you transfer any part of the Account Value among the Subaccounts of your contract.

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Seek Tax Advice

Integrity Life does not act as your tax or legal advisor. This discussion of the federal income tax treatment of the contract is not designed to cover all situations and is not intended to be tax advice. It is based upon our understanding of the present federal income tax laws as currently interpreted by the IRS and various courts. The IRS or the courts may change their views on the treatment of these contracts. Future legislation may have a negative effect on annuity contracts or IRAs. Also, we have not attempted to consider any applicable state or other tax laws.

Because of the complexity of the tax laws and the fact that tax results will vary according to the particular circumstances, anyone considering buying a contract, selecting an Annuity Option under the contract, or receiving annuity payments under a contract should consult a qualified tax advisor.

You should carefully consider the advantages and disadvantages of owning a variable annuity as an IRA or tax-qualified plan, as well as the costs and benefits of the contract (including the death benefits, income benefits and other non-tax-related benefits), before you purchase the contract as an IRA.

This contract includes an enhanced death benefit and offers an optional living benefit. The IRS requires an actuarial present value of enhanced benefits to be added to the Account Value for purposes of calculating the fair market value of the annuity and determining the RMD.

The IRS has not reviewed the contract for qualification as an IRA and we make no guarantees that the contract will so qualify. Integrity Life does not guarantee the tax status, federal, state, or local, of any contract or any transaction involving the contracts.

Part 9 – Additional Information

Systematic Withdrawal Program

We offer a program that allows you to pre-authorize periodic withdrawals from your contract prior to your Annuity Date. You can choose to have withdrawals made monthly, quarterly, semi-annually or annually and can specify the day of the month (other than the 29^th, 30^th or 31^st) on which the withdrawal is to be made. If you do not select how often you want to receive withdrawals, we will make them on a monthly basis. You may specify a dollar amount or an annual percentage to be withdrawn, such as the Free Withdrawal Amount. The minimum Systematic Withdrawal is $100. If you do not have enough Account Value to make the withdrawal you have specified, no withdrawal will be made and your enrollment in the program will end. You may specify an account for direct deposit of your Systematic Withdrawals. Direct deposit is required for monthly withdrawals. Withdrawals under this program are subject to withdrawal charges, if any (see Part 4, section titled "Withdrawal Charge") and to income tax and a 10% tax penalty if you are under age 59½. See Part 8.

To enroll in our Systematic Withdrawal Program, send the appropriate form to our Administrative Office. You may terminate your participation in the program upon prior written notice. We may terminate or change the Systematic Withdrawal Program at any time.

Cyber Security

We rely heavily on interconnected computer systems and digital data to conduct our variable product business activities. Because our variable product business is highly dependent upon the effective operation of our computer systems and those of our business partners, our business is potentially vulnerable to disruptions from utility outages and other problems, and susceptible to operational and information security risks resulting from information systems failure, including hardware and software malfunctions and cyber-attacks. These risks include, among other things, the theft, misuse, corruption and destruction of data maintained online or digitally, interference with or denial of service attacks on websites and other operational disruption and unauthorized release of confidential customer information. Such systems failures and cyber-attacks affecting us, the underlying funds, the principal underwriter and other affiliated or third-party service providers may adversely affect us and your Contract Value. For instance, cyber-attacks may interfere with our processing of policy transactions, including the processing of orders with the underlying funds; cause the release and possible destruction of confidential customer or business information;

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subject us and/or our service providers and intermediaries to regulatory fines and financial losses; and/or cause reputational damage. Cyber security risks may also affect the issuers of securities in which the underlying funds invest, which may cause the underlying funds to lose value. There can be no assurance that we, the underlying funds or our service providers will avoid losses affecting your Contract that result from cyber-attacks or information security breaches in the future. These risks also apply to other insurance and financial services companies and businesses.

Anti-Money Laundering

Federal laws designed to counter terrorism and prevent money laundering by criminals might in certain circumstances require us to reject a premium payment and/or “freeze” an owner’s account. If these laws apply in a particular situation, we would not be allowed to pay any request for surrenders (either full or partial), or death benefits, make transfers, or continue making annuity payments absent instructions from the appropriate federal regulator. We may also be required to provide information about you and your Contract to government agencies or departments.

Income Plus Withdrawal Program

We offer an Income Plus Withdrawal Program that allows you to pre-authorize substantially equal periodic withdrawals, based on your life expectancy as defined by the Tax Code, from your contract anytime before you reach age 59½. You will not have to pay a tax penalty for these withdrawals, but they will be subject to ordinary income tax. See Part 8. Once you begin receiving your withdrawals under this program, you should not change or stop the withdrawals until the later of:


•	the date you reach age 59½; and


•	five years from the date of the first withdrawal under the program.

If you change or stop the withdrawals or take an additional withdrawal, you may have to pay a 10% penalty tax that would have been due on all prior withdrawals made under the Income Plus Withdrawal Program before you reached the date described above, plus interest.

You may choose to have withdrawals made monthly, quarterly, semi-annually or annually and may specify the day of the month (other than the 29^th, 30^th or 31^st) on which the withdrawal is made. You may specify an account for direct deposit of your withdrawals. Direct deposit is required for monthly withdrawals. We will calculate the amount of the withdrawal, subject to a $100 minimum. We are not responsible for any tax or other liability you may incur if our good faith calculations are not correct. You should consult with your tax advisor to ensure these withdrawals are appropriate to your situation.

If on any withdrawal date you do not have enough Account Value to make the withdrawals you specified, no withdrawal will be made and your enrollment in the program will end.

To enroll in our Income Plus Withdrawal Program, send the appropriate form to our Administrative Office. You may end your participation in the program upon prior written notice. We may terminate or change the Income Plus Withdrawal Program at any time. This program is not available in connection with the Systematic Withdrawal Program. Withdrawals under this program are subject to a withdrawal charge, if any. See Part 4, section titled "Withdrawal Charge."

This program is not available with a GLWB Rider. See Part 6.

Choices Plus Required Minimum Distribution (RMD) Program

We offer a Choices Plus RMD Program that allows you to pre-authorize withdrawals from your IRA after you attain age 70½. The Tax Code requires that you take minimum distributions beginning on or before April 1^st of the calendar year following the calendar year in which you turn 70½ years old. The distribution required by April 1 is the distribution required for the year you actually turn 70½ years old. You must take distributions for each calendar year after the year you turn age 70½ by December 31 of that year. These withdrawals are subject to ordinary income tax. See Part 8.

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You can choose the Choices Plus RMD Program at any time if you are age 70½ or older by sending the election form to our Administrative Office. You can choose to have withdrawals made monthly, quarterly, semi-annually, or annually and can specify the day of the month (other than the 29^th, 30^th, or 31^st) on which the withdrawal is made. You may specify an account for direct deposit of your withdrawals. Direct deposit is required for monthly withdrawals. As a convenience, we will calculate the amount of the withdrawals. We are not responsible for any tax or other liability you may incur if our good faith calculations are not correct. You should consult with your tax advisor to ensure these withdrawals are appropriate to your situation.

Withdrawals of Account Value that are made as part of the Choices Plus program are not subject to a withdrawal charge, as long as you do not take additional withdrawals. You may end your participation in the program upon prior written notice. We may terminate or change the Choices Plus RMD Program at any time.

This program is not available with a GLWB Rider. See Part 6, section titled "Withdrawal Protection for Required Minimum Distributions."

Systematic Transfer Program

We offer a Systematic Transfer Program where we accept new premiums into a Systematic Transfer Option (STO), which is a Fixed Account, and make transfers out of the STO to one or more Subaccounts on a monthly or quarterly basis. We will transfer your STO premiums in approximately equal installments of at least $1,000 monthly over a six-month or monthly or quarterly over a one-year period, depending on the options you select. You can only invest in either the six-month or one-year STO at any one time, but not both. If you do not have enough Account Value in the STO to transfer to each Subaccount specified, a final transfer will be made on a pro rata basis and your enrollment in the program will end. All interest accrued and any Account Value remaining in the STO at the end of the period during which transfers are scheduled to be made will be transferred at the end of that period on a pro rata basis to the Subaccounts you chose for this program. You cannot transfer Account Value into the STO.

Transfers made under our Systematic Transfer Program do not trigger a 60-day waiting period. See Part 4, section titled “Allocations and Transfers.”

To enroll in our Systematic Transfer Program, send the appropriate form to our Administrative Office. We can end the Systematic Transfer Program in whole or in part, or restrict premiums to the program.

This program is available with a GLWB Rider only for the initial premium we received on the Contract Date. See Part 6.

Customized Asset Rebalancing Program

Asset rebalancing allows you to maintain a diversified investment mix that is appropriate for your goals and risk tolerance. Because your different Subaccounts will experience different gains and losses at different times, your asset allocation may shift from your preferred mix. Asset rebalancing periodically resets your investments to your original allocations, ensuring that your asset mix stays in line with your investment strategy.

We offer a Customized Asset Rebalancing Program that allows you to have your investments rebalanced to your allocation percentages periodically. You can choose to rebalance quarterly, semi-annually or annually.

The Account Value in the currently available Subaccounts will automatically be rebalanced back to your allocation percentages by selling all existing Units subject to rebalancing and repurchasing Units according to your allocation. You will receive a confirmation notice after each rebalancing. Subaccounts that are closed to new purchases, and the Fixed Account, are not included in the Customized Asset Rebalancing Program.

Transfers under our Customized Asset Rebalancing Program do not trigger a 60-day waiting period. See Part 4, section titled “Allocations and Transfers.”

To enroll in our Customized Asset Rebalancing Program, send the appropriate form to our Administrative Office. You may terminate your participation in the program upon prior written notice. We may end or change the

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Customized Asset Rebalancing Program at any time. We recommend you consult with your financial professional when establishing your allocation.

This program is not available with a GLWB Rider because quarterly rebalancing is required. See Part 6.

Legal Proceedings

Integrity Life is a party to litigation and arbitration proceedings in the ordinary course of its business. None of these matters is expected to have a material adverse effect on Integrity Life.

Table of Contents of Statement of Additional Information



	Page
General Information and History	1
Administration and Distribution of the Contracts	1
Performance Data and Illustrations	2
Distributions from Tax Favored Retirement Programs	4
Financial Statements	5

If you would like to receive a copy of the Statement of Additional Information, please write:

Administrative Office

Integrity Life Insurance Company

400 Broadway

Cincinnati, OH 45201-3341

ATTN: Request SAI for Integrity Life VAROOM II dated May 1, 2019

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Appendix A

Financial Information for Separate Account I of Integrity Life

The table below shows the following data for the Subaccounts currently offered: Unit Value at inception; the number of Units outstanding at December 31 of each year since inception; and the Unit Value at the beginning and end of each period since inception.



Subaccount	2018	2017	2016	2015	2014	2013	2012	2011	Value and Inception Date
iShares Core S&P 500 ETF (3715E04) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$54.26 $50.85 28,172	$45.43 $54.26 26,025	$41.29 $45.43 25,618	$41.55 $41.29 22,994	$37.29 $41.55 20,834	$28.61 $37.29 15,858	$25.24 $28.61 4,658	$25.00 $25.24 0	$25.00 12-30-11
iShares Core S&P 500 ETF – GLWB Investment Strategy 1 (3715E05) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$52.12 $48.51 1,302,303	$43.92 $52.12 1,326,489	$40.19 $43.92 1,305,165	$40.71 $40.19 1,134,399	$36.78 $40.71 874,514	$28.40 $36.78 563,979	$25.23 $28.40 236,903	$25.00 $25.23 0	$25.00 12-30-11
iShares Core S&P 500 ETF – GLWB Investment Strategy 2 (3715E06) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$51.47 $47.81 64,200	$43.46 $51.47 63,834	$39.85 $43.46 67,379	$40.45 $39.85 63,522	$36.62 $40.45 48,970	$28.34 $36.62 28,673	$25.22 $28.34 13,266	$25.00 $25.22 0	$25.00 12-30-11
iShares Core S&P Mid-Cap ETF (3717E04) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$52.48 $45.73 16,776	$46.01 $52.48 13,908	$38.87 $46.01 11,554	$40.55 $38.87 6,997	$37.68 $40.55 8,015	$28.74 $37.68 6,469	$24.81 $28.74 1,612	$25.00 $24.81 0	$25.00 12-30-11
iShares Core S&P Mid-Cap ETF – GLWB Investment Strategy 1 (3717E05) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$50.40 $43.62 406,093	$44.49 $50.40 392,159	$37.83 $44.49 375,622	$39.73 $37.83 341,014	$37.16 $39.73 260,156	$28.53 $37.16 160,094	$24.80 $28.53 68,455	$25.00 $24.80 0	$25.00 12-30-11
iShares Core S&P Mid-Cap ETF – GLWB Investment Strategy 2 (3717E06) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$49.78 $42.99 16,795	$44.02 $49.78 15,515	$37.51 $44.02 15,931	$39.48 $37.51 14,669	$37.01 $39.48 12,247	$28.47 $37.01 6,465	$24.79 $28.47 1,765	$25.00 $24.79 0	$25.00 12-30-11

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Subaccount	2018	2017	2016	2015	2014	2013	2012	2011	Value and Inception Date
iShares Core S&P Small-Cap ETF (3718E04) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$55.20 $49.55 11,031	$49.73 $55.20 9,603	$40.04 $49.73 8,089	$41.68 $40.04 4,292	$40.17 $41.68 4,912	$28.85 $40.17 3,713	$25.38 $28.85 394	$25.00 $25.38 0	$25.00 12-30-11
iShares Core S&P Small-Cap ETF – GLWB Investment Strategy 1 (3718E05) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$53.02 $47.27 185,337	$48.08 $53.02 185,166	$38.97 $48.08 177,594	$40.83 $38.97 165,600	$39.62 $40.83 128,193	$28.64 $39.62 75,528	$25.36 $28.64 34,259	$25.00 $25.36 0	$25.00 12-30-11
iShares Core S&P Small-Cap ETF – GLWB Investment Strategy 2 (3718E06) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$52.36 $46.59 14,044	$47.58 $52.36 13,189	$38.65 $47.58 13,854	$40.58 $38.65 12,460	$39.45 $40.58 10,388	$28.58 $39.45 4,605	$25.36 $28.58 1,974	$25.00 $25.36 0	$25.00 12-30-11
iShares Core U.S. Aggregate Bond ETF (3710E04) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$25.83 $25.36 2,584	$25.42 $25.83 2,306	$25.31 $25.42 1,644	$25.67 $25.31 1,633	$24.69 $25.67 1,633	$25.68 $24.69 1,633	$25.23 $25.68 613	$25.00 $25.23 0	$25.00 12-30-11
iShares Core U.S. Aggregate Bond ETF – GLWB Investment Strategy 1 (3710E05) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$24.81 $24.19 0	$24.58 $24.81 0	$24.63 $24.58 0	$25.15 $24.63 0	$24.35 $25.15 0	$25.49 $24.35 0	$25.21 $25.49 0	$25.00 $25.21 0	$25.00 12-30-11
iShares Core U.S. Aggregate Bond ETF – GLWB Investment Strategy 2 (3710E06) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$24.50 $23.84 29,583	$24.32 $24.50 31,040	$24.42 $24.32 34,874	$24.99 $24.42 32,475	$24.25 $24.99 27,254	$25.44 $24.25 22,141	$25.21 $25.44 13,328	$25.00 $25.21 0	$25.00 12-30-11
iShares iBoxx $ High Yield Corporate Bond ETF (3713E04) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$31.62 $30.39 18,256	$30.39 $31.62 15,953	$27.31 $30.39 12,293	$29.32 $27.31 2,290	$29.33 $29.32 3,744	$28.25 $29.33 1,520	$25.82 $28.25 1,574	$25.00 $25.82 0	$25.00 12-30-11
iShares iBoxx $ High Yield Corporate Bond ETF – GLWB Investment Strategy 1 (3713E05) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$30.37 $29.00 0	$29.38 $30.37 0	$26.58 $29.38 0	$28.72 $26.58 0	$28.93 $28.72 0	$28.05 $28.93 0	$25.81 $28.05 0	$25.00 $25.81 0	$25.00 12-30-11

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Subaccount	2018	2017	2016	2015	2014	2013	2012	2011	Value and Inception Date
iShares iBoxx $ High Yield Corporate Bond ETF – GLWB Investment Strategy 2 (3713E06) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$29.99 $28.58 6,852	$29.07 $29.99 7,722	$26.36 $29.07 8,037	$28.54 $26.36 8,493	$28.81 $28.54 7,067	$27.99 $28.81 4,666	$25.81 $27.99 3,274	$25.00 $25.81 0	$25.00 12-30-11
iShares Intermediate-Term Corporate Bond ETF (3711E04) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$26.87 $26.17 1,234	$26.45 $26.87 1,391	$26.10 $26.45 698	$26.46 $26.10 698	$25.97 $26.46 698	$26.55 $25.97 698	$25.28 $26.55 0	$25.00 $25.28 0	$25.00 12-30-11
iShares Intermediate-Term Corporate Bond ETF – GLWB Investment Strategy 1 (3711E05) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$25.81 $24.96 0	$25.58 $25.81 0	$25.40 $25.58 0	$25.92 $25.40 0	$25.61 $25.92 0	$26.36 $25.61 0	$25.27 $26.36 0	$25.00 $25.27 0	$25.00 12-30-11
iShares Intermediate-Term Corporate Bond ETF– GLWB Investment Strategy 2 (3711E06) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$25.49 $24.60 41,590	$25.31 $25.49 43,666	$25.19 $25.31 36,100	$25.76 $25.19 30,758	$25.50 $25.76 22,241	$26.30 $25.50 12,460	$25.27 $26.30 1,951	$25.00 $25.27 0	$25.00 12-30-11
iShares International Treasury Bond ETF (3719E04) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$24.18 $23.10 5,259	$22.13 $24.18 2,753	$22.37 $22.13 1,909	$24.58 $22.37 1,293	$25.76 $24.58 1,376	$26.54 $25.76 441	$25.64 $26.54 496	$25.00 $25.64 0	$25.00 12-30-11
iShares International Treasury Bond ETF – GLWB Investment Strategy 1 (3719E05) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$23.22 $22.04 444,038	$21.39 $23.22 420,082	$21.77 $21.39 361,394	$24.08 $21.77 301,038	$25.40 $24.08 205,854	$26.35 $25.40 113,177	$25.62 $26.35 36,359	$25.00 $25.62 0	$25.00 12-30-11
iShares International Treasury Bond ETF – GLWB Investment Strategy 2 (3719E06) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$22.93 $21.72 1,606	$21.17 $22.93 2,127	$21.59 $21.17 1,935	$23.93 $21.59 1,500	$25.30 $23.93 949	$26.29 $25.30 873	$25.62 $26.29 623	$25.00 $25.62 0	$25.00 12-30-11
iShares S&P 500 Growth ETF (3714E04) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$55.62 $54.45 8,207	$44.56 $55.62 6,218	$42.53 $44.56 5,302	$41.14 $42.53 2,304	$36.57 $41.14 3,848	$28.04 $36.57 2,908	$25.08 $28.04 1,063	$25.00 $25.08 0	$25.00 12-30-11

V2I-49



Subaccount	2018	2017	2016	2015	2014	2013	2012	2011	Value and Inception Date
iShares S&P 500 Growth ETF – GLWB Investment Strategy 1 (3714E05) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$53.42 $51.95 127,419	$43.08 $53.42 136,454	$41.39 $43.08 140,319	$40.30 $41.39 120,906	$36.07 $40.30 93,841	$27.84 $36.07 60,427	$25.07 $27.84 21,508	$25.00 $25.07 0	$25.00 12-30-11
iShares S&P 500 Growth ETF – GLWB Investment Strategy 2 (3714E06) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$52.75 $51.20 4,794	$42.64 $52.75 2,881	$41.04 $42.64 3,164	$40.05 $41.04 2,914	$35.91 $40.05 2,132	$27.78 $35.91 1,559	$25.06 $27.78 93	$25.00 $25.06 0	$25.00 12-30-11
iShares S&P 500 Value ETF (3716E04) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$51.52 $45.89 9,813	$45.57 $51.52 9,385	$39.59 $45.57 7,528	$41.73 $39.59 3,272	$37.92 $41.73 4,807	$29.37 $37.92 887	$25.47 $29.37 1,466	$25.00 $25.47 0	$25.00 12-30-11
iShares S&P 500 Value ETF – GLWB Investment Strategy 1 (3716E05) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$49.48 $43.78 57,404	$44.05 $49.48 56,559	$38.54 $44.05 51,746	$40.89 $38.54 49,500	$37.40 $40.89 39,991	$29.16 $37.40 27,362	$25.46 $29.16 11,149	$25.00 $25.46 0	$25.00 12-30-11
iShares S&P 500 Value ETF – GLWB Investment Strategy 2 (3716E06) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$48.86 $43.15 3,273	$43.60 $48.86 3,860	$38.21 $43.60 3,667	$40.63 $38.21 3,578	$37.24 $40.63 2,989	$29.10 $37.24 2,683	$25.46 $29.10 403	$25.00 $25.46 0	$25.00 12-30-11
iShares TIPS Bond ETF (3712E04) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$23.69 $22.90 509	$23.46 $23.69 453	$22.84 $23.46 164	$23.70 $22.84 167	$23.32 $23.70 106	$25.97 $23.32 153	$24.90 $25.97 516	$25.00 $24.90 0	$25.00 12-30-11
iShares TIPS Bond ETF – GLWB Investment Strategy 1 (3712E05) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$22.75 $21.85 0	$22.68 $22.75 0	$22.23 $22.68 0	$23.22 $22.23 0	$23.00 $23.22 0	$25.79 $23.00 0	$24.89 $25.79 0	$25.00 $24.89 0	$25.00 12-30-11
iShares TIPS Bond ETF – GLWB Investment Strategy 2 (3712E06) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$22.47 $21.53 3,711	$22.44 $22.47 3,955	$22.05 $22.44 4,139	$23.08 $22.05 3,853	$22.91 $23.08 3,444	$25.73 $22.91 2,492	$24.88 $25.73 1,284	$25.00 $24.88 0	$25.00 12-30-11

V2I-50



Subaccount	2018	2017	2016	2015	2014	2013	2012	2011	Value and Inception Date
Vanguard Developed Markets Index Fund, ETF Shares (3722E04) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$38.43 $32.13 7,557	$30.99 $38.43 7,144	$30.77 $30.99 6,806	$31.48 $30.77 6,016	$34.14 $31.48 6,378	$28.50 $34.14 2,931	$23.82 $28.50 475	$25.00 $23.82 0	$25.00 12-30-11
Vanguard Developed Markets Index Fund, ETF Shares – GLWB Investment Strategy 1 (3722E05) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$36.91 $30.66 298,647	$29.96 $36.91 266,775	$29.95 $29.96 269,503	$30.85 $29.95 216,257	$33.67 $30.85 159,796	$28.30 $33.67 87,786	$23.81 $28.30 35,191	$25.00 $23.81 0	$25.00 12-30-11
Vanguard Developed Markets Index Fund, ETF Shares – GLWB Investment Strategy 2 (3722E06) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$36.45 $30.21 11,114	$29.65 $36.45 11,105	$29.70 $29.65 11,430	$30.65 $29.70 11,130	$33.53 $30.65 7,873	$28.23 $33.53 2,773	$23.81 $28.23 995	$25.00 $23.81 0	$25.00 12-30-11
Vanguard Dividend Appreciation Index Fund, ETF Shares (3720E04) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$47.98 $46.09 8,710	$40.01 $47.98 7,439	$36.42 $40.01 7,114	$37.86 $36.42 3,138	$35.06 $37.86 4,566	$27.60 $35.06 3,095	$25.31 $27.60 1,062	$25.00 $25.31 0	$25.00 12-30-11
Vanguard Dividend Appreciation Index Fund, ETF Shares – GLWB Investment Strategy 1 (3720E05) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$46.08 $43.97 0	$38.69 $46.08 0	$35.45 $38.69 0	$37.09 $35.45 0	$34.58 $37.09 0	$27.40 $34.58 0	$25.30 $27.40 0	$25.00 $25.30 0	$25.00 12-30-11
Vanguard Dividend Appreciation Index Fund, ETF Shares – GLWB Investment Strategy 2 (3720E06) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$45.51 $43.33 25,687	$38.28 $45.51 29,738	$35.15 $38.28 33,398	$36.86 $35.15 32,994	$34.43 $36.86 23,648	$27.34 $34.43 16,287	$25.30 $27.34 9,043	$25.00 $25.30 0	$25.00 12-30-11
Vanguard Emerging Markets Stock Index Fund, ETF Shares (3721E04) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$30.10 $25.17 3,554	$23.33 $30.10 4,474	$21.20 $23.33 3,346	$25.67 $21.20 2,564	$26.19 $25.67 2,482	$28.03 $26.19 2,119	$23.52 $28.03 1,438	$25.00 $23.52 0	$25.00 12-30-11
Vanguard Emerging Markets Stock Index Fund, ETF Shares – GLWB Investment Strategy 1 (3721E05) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$28.91 $24.01 0	$22.56 $28.91 0	$20.63 $22.56 0	$25.15 $20.63 0	$25.83 $25.15 0	$27.83 $25.83 0	$23.51 $27.83 0	$25.00 $23.51 0	$25.00 12-30-11

V2I-51



Subaccount	2018	2017	2016	2015	2014	2013	2012	2011	Value and Inception Date
Vanguard Emerging Markets Stock Index Fund, ETF Shares – GLWB Investment Strategy 2 (3721E06) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$28.55 $23.66 12,045	$22.32 $28.55 12,891	$20.46 $22.32 15,081	$25.00 $20.46 12,239	$25.71 $25.00 9,495	$27.76 $25.71 5,068	$23.50 $27.76 1,711	$25.00 $23.50 0	$25.00 12-30-11
Vanguard Intermediate-Term Corporate Bond Index Fund, ETF Shares (3723E04) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$29.59 $28.52 3,200	$28.64 $29.59 3,257	$27.74 $28.64 2,851	$28.02 $27.74 2,980	$26.53 $28.02 2,997	$27.63 $26.53 0	$25.44 $27.63 0	$25.00 $25.44 0	$25.00 12-30-11
Vanguard Intermediate-Term Corporate Bond Index Fund, ETF Shares – GLWB Investment Strategy 1 (3723E05) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$28.42 $27.21 0	$27.69 $28.42 0	$27.00 $27.69 0	$27.45 $27.00 0	$26.17 $27.45 0	$27.43 $26.17 0	$25.43 $27.43 0	$25.00 $25.43 0	$25.00 12-30-11
Vanguard Intermediate-Term Corporate Bond Index Fund, ETF Shares – GLWB Investment Strategy 2 (3723E06) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$28.07 $26.82 3,950	$27.40 $28.07 4,271	$26.77 $27.40 3,379	$27.28 $26.77 3,000	$26.06 $27.28 2,886	$27.37 $26.06 2,224	$25.42 $27.37 1,613	$25.00 $25.42 0	$25.00 12-30-11
Vanguard Large-Cap Index Fund, ETF Shares (3724E04) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$54.07 $50.68 10,022	$45.17 $54.07 9,113	$41.20 $45.17 7,123	$41.57 $41.20 4,106	$27.37 $41.57 5,206	$28.59 $27.37 2,954	$25.20 $28.59 539	$25.00 $25.20 0	$25.00 12-30-11
Vanguard Large-Cap Index Fund, ETF Shares – GLWB Investment Strategy 1 (3724E05) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$51.93 $48.35 0	$43.67 $51.93 0	$40.10 $43.67 0	$40.73 $40.10 0	$36.86 $40.73 0	$28.39 $36.86 0	$25.18 $28.39 0	$25.00 $25.18 0	$25.00 12-30-11
Vanguard Large-Cap Index Fund, ETF Shares – GLWB Investment Strategy 2 (3724E06) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$51.29 $47.65 14,970	$43.22 $51.29 16,456	$39.76 $43.22 17,175	$40.47 $39.76 17,000	$36.70 $40.47 16,200	$28.32 $36.70 10,410	$25.18 $28.32 7,134	$25.00 $25.18 0	$25.00 12-30-11
Vanguard Mega Cap Index Fund, ETF Shares (3725E04) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$54.58 $51.69 526	$45.38 $54.58 474	$41.33 $45.38 584	$41.54 $41.33 680	$37.36 $41.54 2,062	$28.69 $37.36 481	$25.32 $28.69 392	$25.00 $25.32 0	$25.00 12-30-11

V2I-52



Subaccount	2018	2017	2016	2015	2014	2013	2012	2011	Value and Inception Date
Vanguard Mega Cap Index Fund, ETF Shares – GLWB Investment Strategy 1 (3725E05) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$52.42 $49.32 0	$43.87 $52.42 0	$40.23 $43.87 0	$40.69 $40.23 0	$36.85 $40.69 0	$28.48 $36.85 0	$25.30 $28.48 0	$25.00 $25.30 0	$25.00 12-30-11
Vanguard Mega Cap Index Fund, ETF Shares – GLWB Investment Strategy 2 (3725E06) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$51.77 $48.60 743	$43.41 $51.77 1,320	$39.89 $43.41 1,618	$40.44 $39.89 2,189	$36.69 $40.44 2,196	$28.42 $36.69 2,164	$25.30 $28.42 2,220	$25.00 $25.30 0	$25.00 12-30-11
Vanguard Real Estate Index Fund, ETF Shares (3726E04) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$43.08 $39.71 8,109	$41.86 $43.08 6,868	$39.29 $41.86 6,028	$39.10 $39.29 2,907	$30.58 $39.10 2,932	$30.41 $30.58 1,079	$26.41 $30.41 990	$25.00 $26.41 0	$25.00 12-30-11
Vanguard Real Estate Index Fund, ETF Shares – GLWB Investment Strategy 1 (3726E05) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$41.37 $37.88 0	$40.47 $41.37 0	$38.24 $40.47 0	$38.31 $38.24 0	$30.16 $38.31 0	$30.19 $30.16 0	$26.40 $30.19 0	$25.00 $26.40 0	$25.00 12-30-11
Vanguard Real Estate Index Fund, ETF Shares – GLWB Investment Strategy 2 (3726E06) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$40.86 $37.33 8,639	$40.05 $40.86 7,510	$37.92 $40.05 7,202	$38.07 $37.92 6,863	$30.03 $38.07 5,977	$30.13 $30.03 5,587	$26.40 $30.13 3,590	$25.00 $26.40 0	$25.00 12-30-11
Vanguard Short-Term Bond Index Fund, ETF Shares (3729E04) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$23.84 $23.70 1,369	$24.01 $23.84 1,285	$24.16 $24.01 2,226	$24.40 $24.16 2,191	$24.53 $24.40 1,734	$24.98 $24.53 999	$25.00 $24.98 1,400	-	$25.00 5-1-12
Vanguard Short-Term Bond Index Fund, ETF Shares – GLWB Investment Strategy 1 (3729E05) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$22.96 $22.67 0	$23.28 $22.96 0	$23.57 $23.28 0	$23.97 $23.57 0	$24.26 $23.97 0	$24.86 $24.26 0	$25.00 $24.86 0	-	$25.00 5-1-12
Vanguard Short-Term Bond Index Fund, ETF Shares – GLWB Investment Strategy 2 (3729E06) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$22.69 $22.36 13,586	$23.05 $22.69 14,262	$23.39 $23.05 15,432	$23.83 $23.39 19,763	$24.18 $23.83 9,940	$24.83 $24.18 5,482	$25.00 $24.83 2,325	-	$25.00 5-1-12

V2I-53



Subaccount	2018	2017	2016	2015	2014	2013	2012	2011	Value and Inception Date
Vanguard Total Bond Market Index Fund, ETF Shares (3727E04) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$25.78 $25.26 56,592	$25.38 $25.78 42,877	$25.23 $25.38 40,924	$25.58 $25.23 30,309	$24.62 $25.58 24,085	$25.66 $24.62 14,318	$25.18 $25.66 3,523	$25.00 $25.18 0	$25.00 12-30-11
Vanguard Total Bond Market Index Fund, ETF Shares – GLWB Investment Strategy 1 (3727E05) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$24.76 $24.10 2,843,143	$24.54 $24.76 2,727,905	$24.56 $24.54 2,263,621	$25.06 $24.56 1,871,280	$24.28 $25.06 1,405,558	$25.48 $24.28 823,065	$25.17 $25.48 261,182	$25.00 $25.17 0	$25.00 12-30-11
Vanguard Total Bond Market Index Fund, ETF Shares – GLWB Investment Strategy 2 (3727E06) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$24.46 $23.75 139,773	$24.28 $24.46 130,836	$24.35 $24.28 117,279	$24.90 $24.35 107,788	$24.18 $24.90 83,376	$25.42 $24.18 42,270	$25.16 $25.42 15,849	$25.00 $25.16 0	$25.00 12-30-11
Fidelity VIP Government Money Market Portfolio, Initial Class (3730E04) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$9.83 $9.80 3,639	$9.95 $9.83 3,599	$10.00 $9.95 14,493	-	-	-	-	-	$10.00 9-20-16
Fidelity VIP Government Money Market Portfolio, Initial Class – GLWB Investment Strategy 1 (3730E05) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$9.75 $9.66 0	$9.94 $9.75 0	$10.00 $9.94 0	-	-	-	-	-	$10.00 9-20-16
Fidelity VIP Government Money Market Portfolio, Initial Class – GLWB Investment Strategy 2 (3730E06) Unit value at beginning of period Unit value at end of period Units outstanding at end of period	$9.72 $9.61 22,963	$9.93 $9.72 19,492	$10.00 $9.93 17,835	-	-	-	-	-	$10.00 9-20-16

V2I-54

Appendix B – Withdrawal Charge Examples

We allow two ways for you to request withdrawals. In the first method, you receive the amount requested, and any withdrawal charge is taken from the Account Value. This reduces your Account Value by the amount of the withdrawal charge in addition to the amount you requested. This is the method used unless you request otherwise or unless you have elected one of the GLWB Riders. In the second method, you receive less than you requested if a withdrawal charge applies because the Account Value is reduced by the amount of the requested withdrawal and any withdrawal charge is taken from that amount.

For both methods, withdrawals are attributed to amounts in the following order:


1.	any Free Withdrawal Amount (except in the case of a surrender);


2.	premiums that are no longer subject to a withdrawal charge and have not yet been withdrawn (premiums are withdrawn from oldest to youngest);


3.	premiums subject to a withdrawal charge that have not yet been withdrawn (premiums are withdrawn from oldest to youngest);


4.	any gain, interest or other amount that is not considered a premium.

Example Assumptions

Assume one premium is paid, no previous withdrawals have been taken, and the Account Value at the time of the withdrawal is higher than the Account Value on the most recent Contract Anniversary:

Premium: $50,000

Account Value before withdrawal: $60,000

Requested withdrawal: $16,000

Withdrawal charge percentage applicable to the premium: 6%

Taxes are not considered in this example.

Using the First Method

The Free Withdrawal Amount is calculated as:

$6,000 = $60,000 (Account Value on the date of the withdrawal) x 10% (free withdrawal percentage) - $0 (previous partial withdrawals during the current Contract Year).

After first applying the withdrawal to the Free Withdrawal Amount, the amount of the withdrawal still to be applied is:

$10,000 = $16,000 (requested withdrawal) - $6,000 (Free Withdrawal Amount).

There are no premiums that are no longer subject to a withdrawal charge, so the withdrawal is next applied to the premium subject to a withdrawal charge. The withdrawal charge for this method is calculated as:

$638.30 = $10,000 (portion of the withdrawal still to be attributed) x 6% (withdrawal charge percentage) / (1 – 6%) (one minus the withdrawal charge percentage).

Using this method, you will receive $16,000; however, the total Account Value withdrawn is:

$16,638.30 = $16,000 (requested withdrawal) + $638.30 (withdrawal charge).

The amount of premium still subject to a withdrawal charge is:

$39,361.70 = $50,000 (premium) - $10,638.30 (portion of withdrawal attributed to premium including the withdrawal charge).

Note, the withdrawal charge does not just apply to the premium withdrawn ($10,000 x 6%). It also applies to the withdrawal charge itself as indicated by the (1- 6%) factor in the withdrawal charge formula.

V2I-55

Using the Second Method

The Free Withdrawal Amount is calculated as:

$6,000 = $60,000 (Account Value on the date of the withdrawal) x 10% (free withdrawal percentage) - $0 (previous partial withdrawals during the current Contract Year).

After first applying the withdrawal to the Free Withdrawal Amount, the amount of the withdrawal still to be attributed is:

$10,000 = $16,000 (requested withdrawal) - $6,000 (Free Withdrawal Amount).

$600 = $10,000 (portion of the withdrawal still to be attributed) x 6% (withdrawal charge percentage).

Using this method, the total Account Value withdrawn is $16,000; however, you will receive:

$15,400 = $16,000 (requested withdrawal) - $600 (withdrawal charge).

The amount of premium still subject to a withdrawal charge is:

$40,000 = $50,000 (premium) - $10,000 (portion of withdrawal attributed to premium including the withdrawal charge).

Note the second method will produce the same withdrawal charge as the first method if the requested withdrawal under the second method is the same as the total Account Value withdrawn in the first method. For example, a requested withdrawal of $16,638.30 using the second method produces the same $638.30 withdrawal charge as shown in the first method above.

This example is for illustrative purposes only and does not predict results.

V2I-56

Appendix C

Illustrations of Guaranteed Lifetime Withdrawal Benefit

The following examples demonstrate how the GLWB Riders work, based on the stated assumptions. These examples are for illustration only, and do not predict future investment results.

Example #1

This example illustrates the Individual GLWB Rider where withdrawals equal to the Lifetime Payout Amount (LPA), as well as a Nonguaranteed Withdrawal, have been taken, additional premiums have been added and increases to the Withdrawal Percentage and step-ups have been applied. It also illustrates payments for the life of the covered person even though the Account Value has been reduced to zero. All amounts in the table are rounded to the nearest $1.00 in this example.

Assumptions:

• The Contract Date is June 27.

• The Owner’s age on Contract Date is 60 years.


•	The Initial premium was $100,000; additional premiums of $10,000 were paid in calendar years 2 and 10.


•	A Nonguaranteed Withdrawal equal to $776 is taken in calendar year 14.


•	Withdrawals equal to LPA are taken in calendar years 6-13, and calendar years 15+.


•	No withdrawals are taken that would result in withdrawal charges under the contract.


•	The RMD is not higher than the LPA in any calendar year.


•	The Rider remains in effect during the period covered in this example.



	As of January 1 (A)				As of February 10 (B)		As of June 27 (C)		As of October 8 (D)
Calendar Year	Covered Person's Age	Withdrawal Percentage	Benefit Base	LPA	Additional Premium	Benefit Base after Additional Premium	Hypothetical Account Value (E)	Benefit Base after Step-Up	Hypothetical Account Value (E)	Annual Withdrawal	Adjusted Non- Guaranteed Withdrawal	Benefit Base After With-drawal
1 (F)	60 (F)	4.000% (F)	$100,000 (F)	$2,049 (F)	$100,000 (F)	$100,000 (F)	$100,000(F)	$100,000(F)	$99,625	$0	$0	$100,000
2	61	4.050%(G)	$100,000	$4,050	$10,000 (H)	$110,000	$112,614	$112,614 (I)	$112,485	$0	$0	$112,614
3	62	4.150% (J)	$112,614	$4,673	$0	$112,614	$116,985	$116,985	$117,755	$0	$0	$116,985
4	63	4.250% (J)	$116,985	$4,972	$0	$116,985	$121,300	$121,300	$122,188	$0	$0	$121,300
5	64	4.350% (J)	$121,300	$5,277	$0	$121,300	$119,745	$121,300	$120,719	$0	$0	$121,300
6	65	4.950% (K)	$121,300	$6,004	$0	$121,300	$120,719	$121,300	$120,123	$6,004	$0	$121,300
7	66	4.950%	$121,300	$6,004	$0	$121,300	$109,554	$121,300	$110,171	$6,004	$0	$121,300
8	67	4.950%	$121,300	$6,004	$0	$121,300	$106,250	$121,300	$105,343	$6,004	$0	$121,300
9	68	4.950%	$121,300	$6,004	$0	$121,300	$99,338(L)	$121,300	$99,982	$6,004(L)	$0	$121,300
10	69	4.950%	$121,300	$6,004	$10,000(L)	$121,300	$102,098(L)	$121,300	$102,181	$6,004	$0	$121,300
11	70	4.950%	$121,300	$6,004	$0	$121,300	$97,138	$121,300	$97,727	$6,004	$0	$121,300
12	71	4.950%	$121,300	$6,004	$0	$121,300	$88,053	$121,300	$88,553	$6,004	$0	$121,300

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	As of January 1 (A)				As of February 10 (B)		As of June 27 (C)		As of October 8 (D)
Calendar Year	Covered Person's Age	Withdrawal Percentage	Benefit Base	LPA	Additional Premium	Benefit Base after Additional Premium	Hypothetical Account Value (E)	Benefit Base after Step-Up	Hypothetical Account Value (E)	Annual Withdrawal	Adjusted Non- Guaranteed Withdrawal	Benefit Base After With-drawal
13	72	4.950%	$121,300	$6,004	$0	$121,300	$84,200	$121,300	$83,647	$6,004	$0	$121,300
14	73	4.950%	$121,300	$6,004	$0	$121,300	$78,419	$121,300	$78,981	$6,780 (M)	$1,290 (M)	$120,010(M)
15	74	4.950%	$120,010	$5,940	$0	$120,010	$72,923	$120,010	$73,461	$5,940	$0	$120,010
16	75	4.950%	$120,010	$5,940	$0	$120,010	$70,221	$120,010	$70,531	$5,940	$0	$120,010
17	76	4.950%	$120,010	$5,940	$0	$120,010	$65,236	$120,010	$65,375	$5,940	$0	$120,010
18	77	4.950%	$120,010	$5,940	$0	$120,010	$58,246	$120,010	$58,752	$5,940	$0	$120,010
19	78	4.950%	$120,010	$5,940	$0	$120,010	$50,171	$120,010	$49,888	$5,940	$0	$120,010
20	79	4.950%	$120,010	$5,940	$0	$120,010	$45,705	$120,010	$45,702	$5,940	$0	$120,010
21	80	4.950%	$120,010	$5,940	$0	$120,010	$39,364	$120,010	$38,972	$5,940	$0	$120,010
22	81	4.950%	$120,010	$5,940	$0	$120,010	$34,022	$120,010	$34,012	$5,940	$0	$120,010
23	82	4.950%	$120,010	$5,940	$0	$120,010	$28,914	$120,010	$29,175	$5,940	$0	$120,010
24	83	4.950%	$120,010	$5,940	$0	$120,010	$22,305	$120,010	$22,391	$5,940	$0	$120,010
25	84	4.950%	$120,010	$5,940	$0	$120,010	$15,628	$120,010	$15,559	$5,940	$0	$120,010
26	85	4.950%	$120,010	$5,940	$0	$120,010	$9,330	$120,010	$9,298	$5,940	$0	$120,010
27	86	4.950%	$120,010	$5,940	$0	$120,010	$3,525	$120,010	$3,554	$5,940 (N)	$0	$120,010
28	87	4.950%	$120,010	$5,940	$0	$120,010	$0	$120,010	$0	$5,940	$0	$120,010
29	88	4.950%	$120,010	$5,940	$0	$120,010	$0	$120,010	$0	$5,940	$0	$120,010
30	89	4.950%	$120,010	$5,940	$0	$120,010	$0	$120,010	$0	$5,940	$0	$120,010
31+	90	4.950%	$120,010	$5,940	$0	$120,010	$0	$120,010	$0	$5,940	$0	$120,010


(A)	The covered person's age for each year is as of January 1. Also, on each January 1, the LPA is equal to the applicable Withdrawal Percentage multiplied by the Benefit Base.

(B) In any year that an additional premium is added, it is assumed to be added on February 10. For purposes of this example, we selected February 10 as the assumed date of additional premium payments. Since premiums may be paid throughout the year, we hoped to accurately demonstrate the effect on the contract values by using a date other than the Contract Anniversary and January 1, which are the two key dates in the GLWB Rider calculations.

(D) Any withdrawal is assumed to occur one time per year on October 8. For purposes of this example, we selected October 8 as the assumed date of withdrawals.

Since withdrawals may be made throughout the year, we hoped to accurately demonstrate the effect on the contract values by using a random date other than the Contract Anniversary and January 1, which are the two key dates in the GLWB Rider calculations.

(E) The hypothetical Account Value on the Contract Anniversary and on the date of the withdrawal includes deduction of all separate account charges and is before any withdrawal.

(F) The first calendar year begins on June 27, the Contract Date. On this day, the Benefit Base ($100,000) is set equal to the initial premium ($100,000).

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The Withdrawal Percentage (4.00%) is equal to the Age Based Percentage (4.00%) plus the cumulative Deferral Percentage (0%) plus the First Year Deferral Percentage (0%).

Since the covered person is at least age 60 on the date the Rider is issued, the LPA is available. It is calculated as the Withdrawal Percentage multiplied by the Benefit Base:

• 4.0% (Withdrawal Percentage) x $100,000 (Benefit Base) = $4,000 (LPA).

Since this is the first calendar year, the LPA is multiplied by a pro rata portion of the calendar year that remains. The pro rata factor is the number of days remaining in the calendar year divided by the total number of days in the calendar year:

• 187 (Days remaining in calendar year) / 365 (Total days in calendar year assuming a non-leap year) x $4,000 (LPA) = $2,049 (1st Year LPA).

(G) Since no withdrawal was taken in calendar year 1 and since the Contract Date was June 27, the First Year Deferral Percentage is determined as 0.050%. The Withdrawal Percentage (4.050%) is equal to the Age Based Percentage (4.00%) plus the cumulative Deferral Percentage (0%) plus the First Year Deferral Percentage (0.050%).

The LPA is determined as the Withdrawal Percentage multiplied by the Benefit Base:

• 4.050% (Withdrawal Percentage) x $100,000 (Benefit Base) = $4,050 (LPA).

(H) An additional premium of $10,000 is made during calendar year 2. Since this premium is during the first Contract Year, the Benefit Base is increased by the amount of the premium.

• $100,000 (Benefit Base) + $10,000 (additional premium amount) = $110,000 Benefit Base after the additional premium.

(I) In calendar year 2, the Benefit Base increases to $112,614 because the hypothetical Account Value on the Contract Anniversary ($112,614) is larger than the Benefit Base ($110,000). In calendar years 3 and 4, the Benefit Base again increases to the Account Value, because the Account Value on the Contract Anniversary is larger than the Benefit Base. In calendar years 5 and later, the Benefit Base is always larger than the Account Value on the Contract Anniversary, and thus is not stepped up.

(J) Since no withdrawal was taken in calendar year 2, the cumulative Deferral Percentage is increased by 0.10%. The Withdrawal Percentage (4.150%) in calendar year 3 is equal to the Age Based Percentage (4.00%) plus the cumulative Deferral Percentage (0.10%) plus the First Year Deferral Percentage (0.050%).

The LPA is determined as the Withdrawal Percentage multiplied by the Benefit Base:

• 4.150% (Withdrawal Percentage) x $112,614 (Benefit Base) = $4,673 (LPA).

Since no withdrawal was taken in calendar year 3, the cumulative Deferral Percentage is again increased by 0.10%. The Withdrawal Percentage (4.250%) in calendar year 4 is equal to the Age Based Percentage (4.00%) plus the cumulative Deferral Percentage (0.20%) plus the First Year Deferral Percentage (0.050%). The LPA is determined as the Withdrawal Percentage multiplied by the Benefit Base:

• 4.250% (Withdrawal Percentage) x $116,985 (Benefit Base) = $4,972 (LPA).

Since no withdrawal was taken in calendar year 4, the cumulative Deferral Percentage is again increased by 0.10%. The Withdrawal Percentage (4.350%) in calendar year 5 is equal to the Age Based Percentage (4.00%) plus the cumulative Deferral Percentage (0.30%) plus the First Year Deferral Percentage (0.050%). The LPA is determined as the Withdrawal Percentage multiplied by the Benefit Base:

• 4.350% (Withdrawal Percentage) x $121,300 (Benefit Base) = $5,277 (LPA).

(K) Since no withdrawal was taken in calendar year 5, the cumulative Deferral Percentage is again increased by 0.10%. The Age Based Percentage has changed to 4.50% because the covered person is now 65. The Withdrawal Percentage (4.950%) in calendar year 6 is equal to the Age Based Percentage (4.50%) plus the cumulative Deferral Percentage (0.40%) plus the First Year Deferral Percentage (0.050%).

V2I-59

The LPA is determined as the Withdrawal Percentage multiplied by the Benefit Base:

• 4.95% (Withdrawal Percentage) x $121,300 (Benefit Base) = $6,004 (LPA).

Because there is a withdrawal during calendar year 6, the Age Based Percentage is locked at 4.50%.

(L) An additional premium of $10,000 is made during calendar year 10. Since this premium is paid after the first Contract Year, the premium has no impact on the Benefit Base. All premiums received are immediately applied to the Account Value. For this example, we have used hypothetical Account Values in an effort to reflect market fluctuations between -6% and +6% annually. In the case of this $10,000 additional premium in Contract Year 10, the premium was applied to the Account Value, but because the hypothetical Account Value also reflects market losses, the $10,000 additional premium, assumed to be made on February 10, had declined in value by the Contract Anniversary on June 27. The evolution of the hypothetical Account Value can be seen by tracking the Account Value from June 27 of year 9 to year 10. The Account Value goes from $99,338 to $102,098 throughout the year, an increase of $2,760. During that Contract Year, there is a $6,004 withdrawal taken on October 8 and a $10,000 premium applied the following February 10; the premium is $3,996 larger than the withdrawal. That means the market experience resulted in a downward movement of $1,236 ($3,996 - $2,760) throughout the year.


•	$99,338 Account Value on June 27 of year 9


•	- $6,004 Withdrawal on October 8


•	+$10,000 Premium on February 10


•	- $1,236 Market experience


•	= $102,098 Account Value on June 27 of year 10

(M) In calendar year 14, a Nonguaranteed Withdrawal in the amount of $776 ($6,780 amount withdrawn - $6,004 LPA) is taken. The Adjusted Nonguaranteed Withdrawal amount is the Nonguaranteed Withdrawal amount multiplied by the greater of 1.0 and the ratio of the Benefit Base to the Account Value, where both values are calculated immediately before the Nonguaranteed Withdrawal. For this calculation, the Account Value before the Nonguaranteed Withdrawal is $72,977, equal to the Account Value before any withdrawal ($78,981) minus the LPA ($6,004). It is calculated as follows:

• $776 (Nonguaranteed Withdrawal amount) x the greater of 1.0 and 1.6622 ($121,300 Benefit Base divided by $72,977 Account Value) = $1,290 (Adjusted Nonguaranteed Withdrawal amount).

The Benefit Base is reduced by the Adjusted Nonguaranteed Withdrawal amount:

• $121,300 (Benefit Base) - $1,290 (Adjusted Nonguaranteed Withdrawal amount) = $120,010 Benefit Base after the Nonguaranteed Withdrawal.

(N) In calendar year 27, the Account Value is reduced to zero after the withdrawal; however, the Benefit Base is greater than zero. Therefore, the Rider enters Guaranteed Payment Phase and payments of the LPA continue.

V2I-60

Example #2

This example illustrates the Spousal GLWB Rider where withdrawals equal to the LPA as well as Nonguaranteed Withdrawals have been taken and increases to the Withdrawal Percentage have been applied. It also illustrates the termination of the Rider if the Account Value is reduced to zero by a Nonguaranteed Withdrawal. All amounts in the table are rounded to the nearest $1.00 in this example.

Assumptions:

• The Contract Date is August 8.

• The covered persons' ages on Contract Date are: owner is 60 and spouse is 57.

• The Initial premium is $100,000; no additional premiums are paid.

• Withdrawals equal to LPA are taken in calendar years 4-13.

• A Nonguaranteed Withdrawal equal to $10,000 in calendar year 3.

• Full Account Value is withdrawn in calendar year 14.

• No withdrawals are taken that would result in withdrawal charges under the contract.

• The RMD is not higher than the LPA in any calendar year.

• The Rider remains in effect during the period covered in this example.



	As of January 1 (A)					As of August 8 (B)		As of October 8 (C)
Calendar Year	Covered Persons' Ages		Withdrawal Percentage	Benefit Base	LPA	Hypothetical Account Value (D)	Benefit Base after Step-Up	Hypothetical Account Value (D)	Annual Withdrawal	Adjusted Nonguaranteed Withdrawal	Benefit Base After Withdrawal
Calendar Year	Owner	Spouse	Withdrawal Percentage	Benefit Base	LPA	Hypothetical Account Value (D)	Benefit Base after Step-Up	Hypothetical Account Value (D)	Annual Withdrawal	Adjusted Nonguaranteed Withdrawal	Benefit Base After Withdrawal
1 (E)	60 (E)	57 (E)	N/A	$100,000 (E)	N/A	$100,000(E)	$100,000(E)	$99,625	$0	$0	$100,000
2	61	58	N/A	$100,000	N/A	$103,610	$103,610(F)	$103,492	$0	$0	$103,610
3	62	59	N/A	$103,610	N/A	$106,597	$106,597	$107,299	$10,000 (G)	$10,000 (G)	$96,597 (G)
4	63	60	4.125% (H)	$96,597	$3,586(H)	$95,353	$96,597	$96,051	$3,586	$0	$96,597
5	64	61	4.125%	$96,597	$3,586	$90,616	$96,597	$91,354	$3,586	$0	$96,597
6	65	62	4.125%	$96,597	$3,586	$87,767	$96,597	$87,334	$3,586	$0	$96,597
7	66	63	4.125%	$96,597	$3,586	$80,398	$96,597	$80,850	$3,586	$0	$96,597
8	67	64	4.125%	$96,597	$3,586	$78,809	$96,597	$78,137	$3,586	$0	$96,597
9	68	65	4.125%	$96,597	$3,586	$74,550	$96,597	$75,033	$3,586	$0	$96,597
10	69	66	4.125%	$96,597	$3,586	$70,018	$96,597	$70,075	$3,586	$0	$96,597
11	70	67	4.125%	$96,597	$3,586	$67,154	$96,597	$67,561	$3,586	$0	$96,597
12	71	68	4.125%	$96,597	$3,586	$61,415	$96,597	$61,764	$3,586	$0	$96,597
13	72	69	4.125%	$96,597	$3,586	$59,341	$96,597	$58,952	$3,586	$0	$96,597
14	73	70	4.125%	$96,597	$3,586	$55,919	$96,597	$56,320	$56,320 (I)	N/A	$0
15	74	71	N/A	$0	$0	$0	$0	$0	$0	$0	$0


(A)	The covered persons' ages for each year are as of January 1. Also, each January 1 on or after the LPA Eligibility Date, the LPA is equal to the applicable Withdrawal Percentage multiplied by the Benefit Base.

V2I-61


(B)	Any applicable step-up is applied on the Contract Anniversary, which is August 8 of each year.

(C)

Any applicable withdrawal is assumed to occur one time per year on October 8. For purposes of this example, we selected October 8 as the assumed date of withdrawals. Since withdrawals may be made throughout the year, we hoped to accurately demonstrate the effect on the contract values by using a random date other than the Contract Anniversary and January 1, which are the two key dates in the GLWB Rider calculations.


(D)	The hypothetical Account Value on the Contract Anniversary and on the date of the withdrawal includes deduction of all separate account charges and is before any withdrawal.


(E)	The first calendar year begins on August 8, the Contract Date. On this day, the Benefit Base ($100,000) is set equal to the initial premium ($100,000). Since the LPA is not available until the LPA Eligibility Date, the Withdrawal Percentage and the LPA are not applicable.

(F)

In calendar year 2, the Benefit Base increases to $103,610 because the hypothetical Account Value on the Contract Anniversary ($103,610) is larger than the Benefit Base ($100,000). In calendar year 3, the Benefit Base again increases to the Account Value, because the Account Value on the Contract Anniversary is larger than the Benefit Base. In calendar years 4 and later, the Benefit Base is always larger than the Account Value on the Contract Anniversary, and thus is not stepped up.


(G)	In calendar year 3, a Nonguaranteed Withdrawal in the amount of $10,000 is taken. The Adjusted Nonguaranteed Withdrawal amount is the Nonguaranteed Withdrawal amount multiplied by the greater of 1.0 or the ratio of the Benefit Base to the Account Value, where both values are calculated immediately before the Nonguaranteed Withdrawal. It is calculated as follows:

• $10,000 (Nonguaranteed Withdrawal amount) x the greater of 1.0 and 0.9935 ($106,597 Benefit Base divided by $107,299 Account Value) = $10,000 (Adjusted Nonguaranteed Withdrawal amount).

The Benefit Base is reduced by the Adjusted Nonguaranteed Withdrawal amount:

• $106,597 (Benefit Base) - $10,000 (Adjusted Nonguaranteed Withdrawal amount) =$96,597 Benefit Base after the Nonguaranteed Withdrawal.

(H)

January 1 of calendar year 4 is the LPA Eligibility Date; thus, the LPA is now available. Since no withdrawal was taken in calendar year 1 and since the Contract Date was August 8, the First Year Deferral Percentage is 0.025%. Since no withdrawal was taken in calendar year 2, the cumulative Deferral Percentage is 0.10%. The Age Based Percentage (4.00%) is based on the age of the younger covered person. The Withdrawal Percentage (4.125%) is equal to the Age Based Percentage (4.00%) plus the Cumulative Deferral Percentage (0.10%) plus the First Year Deferral Percentage (0.025%).

The LPA is determined as the Withdrawal Percentage multiplied by the Benefit Base multiplied by the Spousal Factor:

• 4.125% (Withdrawal Percentage) x $96,597 (Benefit Base) x 90% (Spousal Factor) = $3,586 (LPA).

Because there is a withdrawal during calendar year 4, the Age Based Percentage is locked at 4.0%.


(I)	A Nonguaranteed Withdrawal reduces the Account Value to zero in calendar year 14 and the Rider and annuity contract terminate.

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THIS PAGE INTENTIONALLY LEFT BLANK

V2I-63

To request a copy of the Statement of Additional Information for the Integrity Life VAROOM II variable annuity, dated May 1, 2019, remove this page and mail it to us at the Administrative Office listed in the Glossary.



Name:____________________________ Phone:____________________________	Address:______________________________ ______________________________________

V2I-64

STATEMENT OF ADDITIONAL INFORMATION

May 1, 2019

VAROOM^® and VAROOM^® II Deferred Flexible Premium Variable Annuities

Issued By Integrity Life Insurance Company

Through Separate Account I of Integrity Life Insurance Company

This Statement of Additional Information (SAI) is not a prospectus. It should be read in conjunction with the applicable variable annuity prospectus dated May 1, 2019.

A copy of the prospectuses to which this SAI relates is available at no charge by writing the Administrative Office at Integrity Life Insurance Company, P.O. Box 5720, Cincinnati, Ohio 45201-5720, or by calling 1-800-325-8583.



Table of Contents	Page
General Information and History.....................................................................................................................	1
Administration and Distribution of the Contracts............................................................................................	1
Performance Data and Illustrations................................................................................................................	2
Distributions from Tax-Favored Retirement Programs....................................................................................	4
Financial Statements......................................................................................................................................	5

General Information and History

Integrity Life Insurance Company (Integrity) is an Ohio life insurance company organized on May 3, 1966. Its principal executive offices are located at 400 Broadway, Cincinnati, Ohio 45202. Integrity, the depositor of Separate Account I, is a wholly owned subsidiary of The Western and Southern Life Insurance Company (WSLIC), an Ohio life insurance company organized on February 23, 1888. WSLIC is a wholly owned subsidiary of Western & Southern Financial Group, Inc., an Ohio corporation, which is wholly owned by Western & Southern Mutual Holding Company, an Ohio mutual insurance holding company.

Administration and Distribution of the Contracts

Administration

Integrity has responsibility for administration of Separate Account I (the Separate Account) and the variable annuity contracts issued through the Separate Account (Contracts). Integrity has entered into a Service Agreement with WSLIC to provide certain services, including administrative services for the Separate Account and the Contracts. Compensation for these services, which is paid by Integrity, is based on the charges and expenses incurred by WSLIC, and will reflect actual costs to the extent reasonably possible.

Custodian

Mid Atlantic Trust Company (MATC), 330 South Poplar, Suite 103, Pierre, SD 57501, is the custodian for the exchange-traded funds (ETFs) held by the Subaccounts. MATC provides certain services to the Separate Account, including custody of and accounting services for the ETFs owned by the Separate Account. MATC also facilitates execution of the purchase and sale of the ETFs through broker-dealers.

Underwriter

Touchstone Securities, Inc. (Touchstone Securities), 400 Broadway, Cincinnati, Ohio 45202, an indirect subsidiary of WSLIC and an affiliate of Integrity, is the principal underwriter of the Contracts. Touchstone Securities is registered under the Securities Exchange Act of 1934 as a broker-dealer and is a member in good standing of the Financial Industry Regulatory Authority (FINRA). The Contracts are offered through Touchstone Securities on a continuous basis. The amount of distribution allowances paid to Touchstone Securities, the principal underwriter, for all variable annuity contracts issued by Integrity was $4,798,026 in 2018, $6,186,777 in 2017, and $7,156,582 in 2016. Touchstone Securities did not retain distribution allowances during these years.

Sales

The Contracts are sold by insurance agents licensed in the states where the Contracts may be lawfully sold. The agents are also registered representatives of broker-dealers, which are registered under the Securities Exchange Act of 1934 and are members of FINRA.

We make payments to the broker-dealer firms that distribute our variable annuity contracts in the form of commissions and other incentives. We may make payments in the form of expense reimbursements or marketing allowances to the broker-dealers that distribute our Contracts in exchange for privileges, including additional or special access to broker-dealers' sales staff, opportunities to provide and attend training and other conferences, and marketing enhancements of our Contracts. The method for calculating any additional compensation may include consideration of the level of sales or assets attributable to the firm. Not all broker-dealers receive additional compensation and the amount of compensation varies by firm. These payments could be significant to a firm, and could create a conflict of interest between the firm or representative and the customer. These payments could provide incentive to a firm or representative to recommend a Contract that is not in a customer’s best interest. We generally choose to compensate broker-dealers that have a strong capability to distribute the Contracts and that are willing to cooperate with our promotional efforts.

The following list includes the names of firms that received expense reimbursement or marketing allowance payments of more than $5,000 with respect to variable annuities sold for Integrity and its wholly owned subsidiary National Integrity Life Insurance Company during the last calendar year.



Ann Arbor Annuity Exchange, Inc.	Hancock Investment Services, Inc.
Arvest Investments, Inc.	Huntington Investment Company, Inc.
BBVA Securities, Inc.	Infinex Investments, Inc.
BMO Harris	Key Investment Services LLC
BOK Financial Securities, Inc.	LPL Financial LLC
CUSO Financial Services, L.P.	M&T Securities, Inc.
Cetera Investment Services LLC	PNC Investments, LLC
Commerce Brokerage Services, Inc.	The MV Group
Crump Life Insurance Services, Inc.	The Marketing Alliance, Inc.
Fifth Third Securities, Inc.	Zenith Marketing Group
Financial Independence Group, Inc.

Performance Data and Illustrations

We may provide performance information and illustrations using performance information. Performance information may be based on historical returns of the subaccounts. At any time in the future, performance will likely be higher or lower than in the past. Historical performance does not predict future results.

Performance Data

In advertisements or in information furnished to you, we may provide the average annual total return and the cumulative total return of the units of the subaccounts. The money market option may also from time to time include the yield and effective yield of its units. Performance information is computed separately for each subaccount in accordance with the formulas described below.

Total return reflects all aspects of the return of a subaccount, including the automatic reinvestment of all distributions and the deduction of all charges that apply on an annual basis. Performance represents annualized percentage change in net assets of a subaccount, based on a hypothetical $1,000 investment, the performance of the underlying portfolios and the charges that would have been made during the periods shown. Premium taxes, if applicable, are not reflected.

Average annual total returns are calculated by determining the growth or decline in value of a hypothetical investment in the subaccount over certain periods, including 1, 3, 5, and 10 years and then calculating the annually compounded percentage rate that would have produced the same result if the rate of growth or decline in value had been constant over the period.

Investors should realize that a subaccount's performance is not constant over time, but changes from year to year, and that the average annual returns represent the averages of historical periods as opposed to the actual historical performance of a subaccount during any portion of the period shown. Average annual returns are calculated using this formula:

P (1+T)ⁿ = ERV, where P is a hypothetical initial payment of $1,000, T is the average annual total return, n is the number of years, and ERV is the redeemable value at the end of the period.

Standardized returns are average annual total returns calculated from the subaccount inception date, which represents the date the subaccount was available in the Contract. Standardized returns reflect the deduction of all Contract expenses, including underlying fund expenses, the annual separate account charges and the withdrawal charge. The cost of the optional guaranteed lifetime withdrawal benefit rider is not included. If the cost of the rider were included, the returns would be lower.

Non-standardized returns are calculated from the fund inception date, which represents the inception date of the underlying fund, rather than the date it was included in the Contract. Performance that predates the inclusion in the Contract is hypothetical and has been adjusted to include Contract expenses. Two sets of non-standardized returns may be presented, each reflecting the deduction of underlying fund expenses and the annual separate account charge. One set also reflects the withdrawal charge. The cost of the guaranteed lifetime withdrawal benefit rider is not included. If the cost of the rider were included, the returns would be lower.

Cumulative total returns are unaveraged and reflect the simple percentage change in the value of a hypothetical investment in the subaccount over a stated period of time. In addition to the period since inception, cumulative total returns may be calculated on a year-to-date basis at the end of each calendar month in the current calendar year. The last day of the period for year-to-date returns is the last day of the most recent calendar month at the time of publication.

Yields quoted in advertising reflect the change in value of a hypothetical investment in a subaccount over a stated period of time, not taking into account capital gains or losses, or any withdrawal charge. Yields are annualized and stated as a percentage.

Current yield and effective yield are calculated for the money market option. Current yield is based on the change in the value of a hypothetical investment (exclusive of capital changes) over a particular 7-day period, less Contract charges that would have applied during the period (the base period), and stated as a percentage of the investment at the start of the base period (the base period return). The base period return is then annualized by multiplying by 365/7, with the resulting yield figure carried to at least the nearest hundredth of one percent.

Effective yield assumes that all dividends received during an annual period have been reinvested. This compounding effect causes effective yield to be higher than current yield. Calculation of effective yield begins with the same base period return used in the calculation of current yield, which is then annualized to reflect weekly compounding pursuant to the following formula:

Effective Yield = [(Base Period Return + 1)^365/7] – 1

Individualized Illustrations

Integrity may provide computer-generated illustrations using programs available through third party firms to provide registered representatives and existing or potential Contracts owners with individualized hypothetical illustrations. The illustrations may include contract values and returns for some or all of the subaccounts. Such illustrations may include graphs, bar charts and other types of formats.

Hypothetical values may be based on: (i) the results of a hypothetical contribution to a Contract invested in a single or multiple subaccounts using standardized and non-standardized average annual returns; or (ii) the results of a hypothetical contribution to a Contract using either static or variable assumed rates of return, as allowed by law.

Distributions From Tax-Favored Qualified Retirement Programs

Distributions from qualified plans are subject to ordinary income tax. Special rules may apply to withdrawals from certain types of qualified plans, including Roth IRAs. You should consult with your tax adviser to determine how these rules affect the distribution of your benefits.

Section 72(t) of the Internal Revenue Code provides that any amount received under a qualified contract, which is included in income, may be subject to an additional federal tax. The amount of the additional federal tax is equal to 10% of the amount that is included in income. Some distributions will be exempt from the additional federal tax. There is an exception to this 10% additional federal tax for:

1) distributions made on or after the date you (or the Annuitant as applicable) reach age 59 ½;


2)	distributions following your death or disability (or the Annuitant as applicable) (for this purpose “disability” is defined in Code Section 72(m)(7);


3)	distributions paid in series of substantially equal payments made annually (or more frequently) for your life (or life expectancy) or joint lives (or life expectancies) of you and designated beneficiary;

4) distributions made to you after separation from service after attaining age 55 (does not apply to IRAs);


5)	distributions made to you to the extent such distributions do not exceed the amount allowable as a deduction under Code Section 213 to you for amounts paid during the taxable year for medical care (determined without regard to whether you itemize deductions for such taxable year);


6)	distributions to an alternate payee pursuant to a qualified domestic relations order (within the meaning of Code Section 414(p)(1));


7)	distributions from an IRA for the health insurance (as described in Code Section 213)(d)(1)(D)) for you and your spouse and dependents if you have received unemployment compensation for at least 12 weeks (this exception will no longer apply after you have been re-employed for at least 60 days);


8)	distributions from an IRA made to you, to the extent such distributions do not exceed your qualified higher education expenses (as defined in Code Section 72(t)(7)) for the tax year;


9)	distributions from an IRA which are qualified first-time homebuyer distributions (as defined in Code Section 72(t)(8));


10)	distributions made to a reservist called to active duty after September 11, 2001, for a period in excess of 179 days (or for an indefinite period), from IRAs or amounts attributable to elective deferrals under a 401(k) plan made during such active period; and


11)	distributions made on account of an IRS levy upon a qualified contract.

Participants in qualified plans (other than IRAs), with the exception of five-percent owners, must begin receiving distributions by April 1 of the calendar year following the later of either (i) the year in which the participant reaches age 70½ or (ii) the calendar year in which the participant retires. Owners of traditional IRAs and 5% owners of qualified plans must begin receiving distributions by April 1 of the calendar year following the year in which the owner or participant reaches age 70½. Owners of Roth IRAs are not required to take distributions during their lifetime. Distributions from certain TSA plans can be deferred until age 75. After death, distribution rules apply to traditional and Roth IRAs. If you do not take mandatory distributions, you may owe a 50% penalty tax on any difference between the required distribution amount and the amount distributed.

Distributions from qualified plans (other than traditional IRAs) in the form of a lump sum settlement, partial withdrawal, or periodic annuity payments for a fixed period of fewer than 10 years, are subject to mandatory federal income tax withholding of 20% of the taxable amount of the distribution, unless (i) the payee directs the transfer of such amounts to another qualified plan or traditional IRA; or (ii) the payment is a minimum distribution required under the Internal Revenue Code. The taxable amount is the amount of the distribution less the amount allocable to after-tax contributions. All other types of taxable distributions are subject to a 10% federal income tax withholding unless the payee elects not to have withholding apply.

We are not permitted to make distributions from a Contract unless a request has been made. It is therefore your responsibility to comply with the minimum distribution rules. You should consult your tax adviser regarding these rules and their proper application.

The above description of the minimum distribution requirements and the federal income tax consequences of distributions from tax-favored retirement plans, which may be funded by the Contract, is only a brief summary and is not intended as tax advice. The rules governing the provisions of plans are extremely complex and often difficult to comprehend. If you do not fully comply with all rules, which are subject to change, you may suffer adverse tax consequences. You should consult a qualified and competent tax adviser prior to adopting a plan or purchasing a Contract in connection with a tax-favored plan.

Financial Statements

The financial statements of Separate Account I of Integrity Life Insurance Company as of December 31, 2018, and for the periods indicated in the financial statements, included in this Statement of Additional Information have been audited by Ernst & Young LLP, 312 Walnut Street, Cincinnati, Ohio 45202, independent registered public accounting firm, as set forth in their reports included thereon. These financial statements are included in this registration statement in reliance on the reports of Ernst & Young LLP given on the authority of such firm as experts in accounting and auditing.

The statutory-basis financial statements of Integrity Life Insurance Company as of December 31, 2018 and 2017 and for each of the three years in the period ended December 31, 2018, and the statutory-basis financial statements of The Western and Southern Life Insurance Company (WSLIC) as of December 31, 2018 and 2017 and for each of the three years in the period ended December 31, 2018, included in this Statement of Additional Information have been audited by Ernst & Young LLP, 312 Walnut Street, Cincinnati, Ohio 45202, independent auditors, as set forth in their reports included thereon. These financial statements are included in this registration statement in reliance on the reports of Ernst & Young LLP given on the authority of such firm as experts in accounting and auditing.

You should distinguish the statutory-basis financial statements of Integrity from the financial statements of the Separate Account and consider the Integrity statutory-basis financial statements only as they relate to the ability of Integrity to meet its obligations under the Contracts. You should consider the statutory-basis financial statements of WSLIC as bearing only on the ability of WSLIC to meet its obligations under its guarantee to Integrity policyholders dated March 3, 2000. You should not consider the Integrity or WSLIC statutory-basis financial statements as relating to the investment performance of the assets held in the Separate Account.

Financial Statements

Separate Account I of Integrity Life Insurance Company

Year Ended December 31, 2018,

With Report of Independent Registered Public

Accounting Firm

Separate Account I

Integrity Life Insurance Company

Financial Statements

Year Ended December 31, 2018



Contents

Report of Independent Registered Public Accounting Firm	1

Financial Statements

Statements of Assets and Liabilities as of December 31, 2018	4
Statements of Operations for the Year ended December 31, 2018	6
Statements of Changes in Net Assets for the Year ended December 31, 2018	9
Statements of Changes in Net Assets for the Year ended December 31, 2017	12
Notes to Financial Statements	15

Report of Independent Registered Public Accounting Firm

The Board of Directors of Integrity Life Insurance Company and

The Contract Owners of Separate Account I of Integrity Life Insurance Company

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of each of the subaccounts listed in Appendix A that comprise Separate Account I of Integrity Life Insurance Company (the Separate Account), as of December 31, 2018, and the related statements of operations for the year ended, and the statements of changes in net assets for the two years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each subaccount as of December 31, 2018, the results of its operations for the year then ended and changes in its net assets for each of the two years then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on each of the subaccounts’ financial statements 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 Accounts 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 are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the fund companies or their transfer agents, as applicable. 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. We believe that our audits provide a reasonable basis for our opinion.

/s/ Ernst & Young LLP

We have served as the Separate Account’s auditor since 1993.

Cincinnati, Ohio

April 22, 2019

Appendix A

Subaccounts comprising Separate Account I of Integrity Life Insurance Company



American Funds Insurance Series		Fidelity Variable Insurance Products (continued)
Non-Affiliated Class 2		Non-Affiliated Service Class:
American Funds I.S. Managed Risk Asset Allocation Fund		Fidelity VIP Equity-Income Portfolio
Non-Affiliated Class 4		Fidelity VIP Growth Portfolio
American Funds I.S. Bond Fund		Fidelity VIP High Income Portfolio
American Funds I.S. Capital Income Builder Fund		Fidelity VIP Asset Manager Portfolio
American Funds I.S. Global Growth Fund		Fidelity VIP Contrafund® Portfolio
American Funds I.S. Growth Fund		Fidelity VIP Balanced Portfolio
American Funds I.S. Growth-Income Fund		Fidelity VIP Mid Cap Portfolio
American Funds I.S. New World Fund		Fidelity VIP Overseas Portfolio
		Non-Affiliated Service Class 2:
BlackRock Variable Series Funds		Fidelity VIP Asset Manager Portfolio
Non-Affiliated Class 3		Fidelity VIP Balanced Portfolio
BlackRock Capital Appreciation V.I. Fund		Fidelity VIP Contrafund® Portfolio
BlackRock Global Allocation V.I. Fund		Fidelity VIP Disciplined Small Cap Portfolio
BlackRock High Yield V.I. Fund		Fidelity VIP Equity-Income Portfolio
BlackRock Total Return V.I. Fund		Fidelity VIP Freedom 2010 Portfolio
		Fidelity VIP Freedom 2015 Portfolio
Columbia Funds Variable Portfolios		Fidelity VIP Freedom 2020 Portfolio
Non-Affiliated Class 1		Fidelity VIP Freedom 2025 Portfolio
Columbia VP – Mid Cap Value Fund		Fidelity VIP Freedom 2030 Portfolio
Non-Affiliated Class 2		Fidelity VIP Growth Portfolio
Columbia VP – Small Cap Value Fund		Fidelity VIP High Income Portfolio
		Fidelity VIP Index 500 Portfolio
DWS Investments VIT Funds		Fidelity VIP Investment Grade Bond Portfolio
Non-Affiliated Class A:		Fidelity VIP Mid Cap Portfolio
DWS Small Cap Index VIP Fund		Fidelity VIP Overseas Portfolio
Non-Affiliated Class B:		Fidelity VIP Target Volatility Portfolio
DWS Small Cap Index VIP Fund
		Franklin Templeton VIP Trust
Fidelity Variable Insurance Products		Non-Affiliated Class 1:
Non-Affiliated Initial Class:		Franklin Growth and Income VIP Fund
Fidelity VIP Balanced Portfolio		Franklin Income VIP Fund
Fidelity VIP Overseas Portfolio		Non-Affiliated Class 2:
Fidelity VIP Equity-Income Portfolio		Franklin Growth and Income VIP Fund
Fidelity VIP Growth Portfolio		Franklin Income VIP Fund
Fidelity VIP High Income Portfolio		Franklin Large Cap Growth VIP Fund
Fidelity VIP Asset Manager Portfolio		Franklin Mutual Shares VIP Fund
Fidelity VIP Contrafund® Portfolio		Franklin Small Cap Value VIP Fund
Fidelity VIP Index 500 Portfolio		Templeton Foreign VIP Fund
Fidelity VIP Investment Grade Bond Portfolio		Templeton Global Bond VIP Fund
Fidelity VIP Government Money Market		Templeton Growth VIP Fund

Appendix A (continued)



Rydex Variable Trust (Guggenheim Variable Insurance Funds)		Pimco Variable Insurance Trust
Investor Class:		Advisor Class:
Guggenheim VT Global Managed Futures Strategy Fund		PIMCO VIT All Asset Portfolio
Guggenheim VT Multi-Hedge Strategies Fund		PIMCO VIT International Bond Portfolio (US Dollar Hedged)
Guggenheim VT Long Short Equity Fund		PIMCO VIT CommodityRealReturn® Strategy Portfolio
		PIMCO VIT Long-Term U.S. Government Portfolio
iShares Trust		PIMCO VIT Low Duration Portfolio
ETF Shares:		PIMCO VIT Real Return Portfolio
iShares® Core S&P 500 ETF		PIMCO VIT Total Return Portfolio
iShares® Core S&P Mid-Cap ETF
iShares® Core S&P Small-Cap ETF		Northern Lights Variable Trust
iShares® Core U.S. Aggregate Bond ETF		Non-Affiliated Class 3:
iShares® iBoxx $ High Yield Corporate Bond ETF		TOPS® Managed Risk Moderate Growth ETF Portfolio
iShares® Intermediate-Term Corporate Bond ETF
iShares® International Treasury Bond ETF		Touchstone Variable Series Trust
iShares® S&P 500 Growth ETF		Affiliated:
iShares® S&P 500 Value ETF		Touchstone VST Active Bond Fund
iShares® TIPS Bond ETF		Touchstone VST Aggressive ETF Fund
		Touchstone VST Conservative ETF Fund
Invesco (AIM) Variable Insurance Funds		Touchstone VST Focused Fund
Non-Affiliated Class 2:		Touchstone VST Large Cap Core Equity Fund
Invesco V.I. American Franchise Fund		Touchstone VST Moderate ETF Fund
Invesco V.I. American Value Fund
Invesco V.I. Comstock Fund		The Vanguard Index Funds
Invesco V.I. International Growth Fund		ETF Shares:
Invesco V.I. Mid Cap Growth Fund		Vanguard® Developed Markets Index Fund, ETF Shares
		Vanguard® Dividend Appreciation Index Fund, ETF Shares
JPMorgan Insurance Trust		Vanguard® Emerging Markets Stock Index Fund, ETF Shares
Non-Affiliated Class 1:		Vanguard® Intermediate-Term Corporate Bond Index Fund, ETF Shares
JP Morgan IT Mid Cap Value		Vanguard® Large-Cap Index Fund, ETF Shares
		Vanguard® Mega Cap Index Fund, ETF Shares
Morgan Stanley Variable Insurance Funds, Inc.		Vanguard® Real Estate Index Fund, ETF Shares
Non-Affiliated Class 1:		Vanguard® Short-Term Bond Index Fund, ETF Shares
Morgan Stanley VIF Emerging Markets Debt Portfolio		Vanguard® Total Bond Market Index Fund, ETF Shares
Morgan Stanley VIF U.S. Real Estate Portfolio
Non-Affiliated Class 2:
Morgan Stanley VIF Emerging Markets Debt Portfolio
Morgan Stanley VIF Emerging Markets Equity Portfolio
Morgan Stanley VIF U.S. Real Estate Portfolio

Separate Account I

Integrity Life Insurance Company

Statement of Assets and Liabilities

December 31, 2018



Subaccount	Investments at fair value		Receivable from (payable to ) the general account of Integrity			Net Assets		Unit Value Range (Lowest to Highest)					Units Outstanding
Affiliated:
Touchstone VST Active Bond Fund	$	12,626,252	$	4		$	12,626,256	$	11.09	to	$	16.66	955,898
Touchstone VST Aggressive ETF Fund	11,522,224		(1		)	11,522,223		15.09		to	22.35		613,435
Touchstone VST Conservative ETF Fund	10,988,615		(7		)	10,988,608		12.91		to	17.60		729,928
Touchstone VST Focused Fund	23,674,188		4			23,674,192		17.09		to	32.14		973,891
Touchstone VST Large Cap Core Equity Fund	13,220,482		3			13,220,485		14.88		to	22.39		738,907
Touchstone VST Moderate ETF Fund	9,608,253		(4		)	9,608,249		14.26		to	19.76		606,985
Non-Affiliated Initial Class:
Fidelity VIP Balanced Portfolio	2,129,318		—			2,129,318		16.87		to	27.41		95,059
Fidelity VIP Overseas Portfolio	1,631,760		(3		)	1,631,757		9.38		to	34.40		64,120
Fidelity VIP Equity-Income Portfolio	8,361,676		—			8,361,676		24.02		to	83.20		143,874
Fidelity VIP Growth Portfolio	6,247,477		2			6,247,479					128.86		48,483
Fidelity VIP High Income Portfolio	577,183		—			577,183					27.86		20,721
Fidelity VIP Asset Manager Portfolio	3,001,456		(1		)	3,001,455					52.57		57,094
Fidelity VIP Contrafund® Portfolio	12,481,077		(3		)	12,481,074		37.83		to	76.91		217,735
Fidelity VIP Index 500 Portfolio	5,270,849		5			5,270,854		18.03		to	63.30		171,379
Fidelity VIP Investment Grade Bond Portfolio	2,744,087		(1		)	2,744,086		11.44		to	40.43		130,162
Fidelity VIP Government Money Market	8,708,988		(6		)	8,708,982		9.61		to	10.03		892,473
Non-Affiliated Service Class:
Fidelity VIP Equity-Income Portfolio	175,394		(1		)	175,393					19.38		9,051
Fidelity VIP Growth Portfolio	551,388		1			551,389		20.47		to	21.04		26,748
Fidelity VIP High Income Portfolio	132,688		—			132,688					15.39		8,621
Fidelity VIP Asset Manager Portfolio	3,239		(1		)	3,238					16.36		198
Fidelity VIP Contrafund® Portfolio	744,883		—			744,883					27.82		26,776
Fidelity VIP Balanced Portfolio	132,056		1			132,057					19.56		6,750
Fidelity VIP Mid Cap Portfolio	2,702,657		1			2,702,658		56.77		to	59.25		47,087
Fidelity VIP Overseas Portfolio	30,341		1			30,342					14.61		2,077
Non-Affiliated Service Class 2:
Fidelity VIP Asset Manager Portfolio	1,504,961		3			1,504,964		13.27		to	18.57		96,638
Fidelity VIP Balanced Portfolio	5,975,659		(7		)	5,975,652		15.49		to	22.35		314,689
Fidelity VIP Contrafund® Portfolio	31,342,355		2			31,342,357		16.70		to	29.30		1,560,188
Fidelity VIP Disciplined Small Cap Portfolio	1,823,657		1			1,823,658		14.28		to	18.90		124,562
Fidelity VIP Equity-Income Portfolio	3,945,212		2			3,945,214		12.49		to	20.83		257,858
Fidelity VIP Freedom 2010 Portfolio	643,944		3			643,947		13.21		to	13.96		48,039
Fidelity VIP Freedom 2015 Portfolio	1,278,647		(1		)	1,278,646		13.27		to	14.22		95,733
Fidelity VIP Freedom 2020 Portfolio	4,091,177		(1		)	4,091,176		13.09		to	14.68		308,359
Fidelity VIP Freedom 2025 Portfolio	4,350,470		(4		)	4,350,466		13.65		to	15.47		314,848
Fidelity VIP Freedom 2030 Portfolio	768,646		(3		)	768,643		13.39		to	14.23		56,074
Fidelity VIP Growth Portfolio	10,072,809		(1		)	10,072,808		18.69		to	24.61		487,456
Fidelity VIP High Income Portfolio	6,041,551		(3		)	6,041,548		13.06		to	20.46		331,810
Fidelity VIP Index 500 Portfolio	39,190,654		(5		)	39,190,649		16.97		to	25.13		2,230,543
Fidelity VIP Investment Grade Bond Portfolio	32,214,597		4			32,214,601		11.21		to	17.83		2,435,946
Fidelity VIP Mid Cap Portfolio	7,327,992		(7		)	7,327,985		15.75		to	36.86		309,065
Fidelity VIP Overseas Portfolio	2,773,126		11			2,773,137		8.95		to	18.12		247,380
Fidelity VIP Target Volatility Portfolio	2,941,937		(2		)	2,941,935		11.38		to	11.64		256,790
Non-Affiliated Class 1:
Columbia VP – Mid Cap Value Fund	1,361,727		(1		)	1,361,726		14.44		to	15.21		92,370
Franklin Growth and Income VIP Fund	1,803,062		(4		)	1,803,058		24.41		to	24.83		73,872
Franklin Income VIP Fund	4,040,776		—			4,040,776		24.92		to	25.36		162,020
JP Morgan IT Mid Cap Value	506,085		1			506,086		20.63		to	31.15		17,415
Morgan Stanley VIF Emerging Markets Debt Portfolio	335,617		(1		)	335,616		15.75		to	27.05		13,133
Morgan Stanley VIF U.S. Real Estate Portfolio	1,406,453		—			1,406,453		14.31		to	41.46		39,917
Non-Affiliated Class 2:
American Funds I.S. Managed Risk Asset Allocation Fund	4,845,502		(1		)	4,845,501		11.30		to	11.65		426,951
Columbia VP – Small Cap Value Fund	2,828,453		(3		)	2,828,450		22.71		to	24.25		122,031
Franklin Growth and Income VIP Fund	6,446,651		(4		)	6,446,647		14.06		to	24.84		346,322
Franklin Income VIP Fund	18,891,490		2			18,891,492		13.23		to	25.34		1,149,487
Franklin Large Cap Growth VIP Fund	4,464,903		(6		)	4,464,897		16.03		to	26.22		241,371
Franklin Mutual Shares VIP Fund	18,411,894		(2		)	18,411,892		11.81		to	23.74		1,349,238
Franklin Small Cap Value VIP Fund	1,379,894		(5		)	1,379,889		14.82		to	17.62		89,533
Invesco V.I. American Franchise Fund	3,067,557		(2		)	3,067,555		19.07		to	29.89		149,150
Invesco V.I. American Value Fund	6,598,437		(1		)	6,598,436		15.23		to	17.00		423,762
Invesco V.I. Comstock Fund	9,022,965		1			9,022,966		13.98		to	27.23		589,229
Invesco V.I. International Growth Fund	3,626,971		2			3,626,973		10.35		to	10.84		345,768

Separate Account I

Integrity Life Insurance Company

Statement of Assets and Liabilities (continued)

December 31, 2018



Subaccount	Investments at fair value		Receivable from (payable to ) the general account of Integrity			Net Assets		Unit Value Range (Lowest to Highest)					Units Outstanding
Non-Affiliated Class 2 (continued):
Invesco V.I. Mid Cap Growth Fund	$	453,278	$	(3	)	$	453,275	$	11.50	to	$	11.67	39,241
Templeton Foreign VIP Fund	8,991,188		1			8,991,189		8.93		to	20.08		862,833
Templeton Global Bond VIP Fund	4,738,215		3			4,738,218		9.35		to	9.68		503,956
Templeton Growth VIP Fund	2,576,763		(1		)	2,576,762		9.65		to	20.34		168,453
Morgan Stanley VIF Emerging Markets Debt Portfolio	888,404		2			888,406		11.50		to	23.61		59,642
Morgan Stanley VIF Emerging Markets Equity Portfolio	2,636,989		3			2,636,992		7.88		to	33.80		197,927
Morgan Stanley VIF U.S. Real Estate Portfolio	3,617,809		2			3,617,811		11.04		to	33.23		290,984
Non-Affiliated Class 3:
BlackRock Capital Appreciation V.I. Fund	9,543,228		3			9,543,231		17.89		to	18.75		528,456
BlackRock Global Allocation V.I. Fund	1,487,572		2			1,487,574		11.04		to	11.57		131,837
BlackRock High Yield V.I. Fund	556,529		1			556,530		10.69		to	10.85		51,896
BlackRock Total Return V.I. Fund	1,489,883		4			1,489,887		9.78		to	9.88		152,241
TOPS® Managed Risk Moderate Growth ETF Portfolio	3,745,481		(1		)	3,745,480		10.39		to	10.66		358,455
Non-Affiliated Class 4:
American Funds I.S. Bond Fund	1,644,716		2			1,644,718		9.75		to	9.89		168,538
American Funds I.S. Capital Income Builder Fund	712,232		(7		)	712,225		9.63		to	9.83		73,582
American Funds I.S. Global Growth Fund	10,883,008		6			10,883,014		12.56		to	12.95		861,108
American Funds I.S. Growth Fund	5,548,398		4			5,548,402		15.44		to	15.92		357,672
American Funds I.S. Growth-Income Fund	17,973,828		(2		)	17,973,826		14.31		to	14.75		1,248,503
American Funds I.S. New World Fund	1,209,872		—			1,209,872		9.82		to	10.12		121,788
Non-Affiliated Class A:
DWS Small Cap Index VIP Fund	469,305		—			469,305		25.72		to	26.83		17,530
Non-Affiliated Class B:
DWS Small Cap Index VIP Fund	1,705,616		2			1,705,618		15.11		to	25.99		95,089
Advisor Class:
PIMCO VIT All Asset Portfolio	838,652		(1		)	838,651		11.71		to	13.24		65,967
PIMCO VIT International Bond Portfolio (US Dollar Hedged)	129,246		3			129,249		10.41		to	10.57		12,337
PIMCO VIT CommodityRealReturn® Strategy Portfolio	1,648,863		(3		)	1,648,860		3.56		to	4.96		450,284
PIMCO VIT Long-Term U.S. Government Portfolio	260,468		1			260,469		10.17		to	10.50		25,426
PIMCO VIT Low Duration Portfolio	5,313,902		2			5,313,904		10.01		to	11.58		481,818
PIMCO VIT Real Return Portfolio	1,263,348		(2		)	1,263,346		10.23		to	12.08		109,235
PIMCO VIT Total Return Portfolio	39,922,728		2			39,922,730		11.07		to	13.84		2,996,825
Investor Class:
Guggenheim VT Global Managed Futures Strategy Fund	615,183		(1		)	615,182		5.76		to	6.07		105,335
Guggenheim VT Multi-Hedge Strategies Fund	411,712		(2		)	411,710		8.05		to	10.38		49,488
Guggenheim VT Long Short Equity Fund	206,432		(3		)	206,429		9.27		to	11.44		20,998
ETF Shares:
iShares® Core S&P 500 ETF	75,242,675		4			75,242,679		47.81		to	51.46		1,548,765
iShares® Core S&P Mid-Cap ETF	21,442,204		(3		)	21,442,201		41.69		to	45.73		492,316
iShares® Core S&P Small-Cap ETF	11,125,931		(1		)	11,125,930		45.25		to	49.55		235,605
iShares® Core U.S. Aggregate Bond ETF	1,310,336		(2		)	1,310,334		23.84		to	26.95		53,292
iShares® iBoxx $ High Yield Corporate Bond ETF	770,806		1			770,807		28.58		to	31.33		25,756
iShares® Intermediate-Term Corporate Bond ETF	1,219,028		—			1,219,028		24.60		to	26.17		49,236
iShares® International Treasury Bond ETF	10,978,668		(3		)	10,978,665		21.72		to	23.36		497,497
iShares® S&P 500 Growth ETF	8,060,083		(1		)	8,060,082		51.20		to	56.24		154,263
iShares® S&P 500 Value ETF	3,530,831		3			3,530,834		41.92		to	45.89		80,428
iShares® TIPS Bond ETF	197,942		3			197,945		21.53		to	25.74		8,420
Vanguard® Developed Markets Index Fund, ETF Shares	10,857,574		(1		)	10,857,573		26.90		to	32.13		358,412
Vanguard® Dividend Appreciation Index Fund, ETF Shares	1,972,525		1			1,972,526		43.33		to	47.95		44,496
Vanguard® Emerging Markets Stock Index Fund, ETF Shares	475,637		—			475,637		20.29		to	25.17		20,515
Vanguard® Intermediate-Term Corporate Bond Index Fund, ETF Shares	215,868		1			215,869		26.82		to	30.45		7,784
Vanguard® Large-Cap Index Fund, ETF Shares	1,543,165		6			1,543,171		47.57		to	50.79		31,660
Vanguard® Mega Cap Index Fund, ETF Shares	119,583		(1		)	119,582		48.60		to	52.01		2,376
Vanguard® Real Estate Index Fund, ETF Shares	743,819		—			743,819		37.33		to	40.86		19,277
Vanguard® Short-Term Bond Index Fund, ETF Shares	348,084		1			348,085		22.36		to	23.70		15,478
Vanguard® Total Bond Market Index Fund, ETF Shares	81,115,982		2			81,115,984		23.75		to	26.94		3,345,244

Separate Account I

Integrity Life Insurance Company

Statement of Operations

Year Ended December 31, 2018



	Investment							Realized and unrealized gain (loss) on investments
	Income		Expenses
Subaccount	Reinvested dividends		Mortality and expense risk and administrative charges		Net investment income (loss)			Realized gain (loss) on sales of investments			Realized gain distributions		Change in net unrealized appreciation (depreciation) during the period			Net realized and unrealized gain (loss) on investments			Net increase (decrease) in net assets resulting from operations
Affiliated:
Touchstone VST Active Bond Fund	$	272,043	$	193,144	$	78,899		$	(53,144	)	$	—	$	(438,294	)	$	(491,438	)	$	(412,539	)
Touchstone VST Aggressive ETF Fund	222,027		187,050		34,977			676,863			361,546		(2,225,216		)	(1,548,353		)	(1,151,830		)
Touchstone VST Conservative ETF Fund	210,325		184,769		25,556			(245,409		)	184,906		(626,037		)	(871,446		)	(660,984		)
Touchstone VST Focused Fund	126,459		389,716		(263,257		)	(24,233		)	544,241		(2,580,755		)	(2,604,988		)	(2,324,004		)
Touchstone VST Large Cap Core Equity Fund	86,381		240,766		(154,385		)	1,007,651			463,673		(2,481,894		)	(1,474,243		)	(1,164,955		)
Touchstone VST Moderate ETF Fund	208,197		156,299		51,898			(130,305		)	326,207		(1,032,121		)	(1,162,426		)	(784,321		)
Non-Affiliated Initial Class:
Fidelity VIP Balanced Portfolio	34,394		32,760		1,634			63,144			122,004		(307,149		)	(244,005		)	(120,367		)
Fidelity VIP Overseas Portfolio	29,702		26,884		2,818			(4,057		)	—		(315,852		)	(319,909		)	(317,091		)
Fidelity VIP Equity-Income Portfolio	210,930		129,639		81,291			66,365			443,870		(1,465,496		)	(1,399,131		)	(873,970		)
Fidelity VIP Growth Portfolio	17,166		97,016		(79,850		)	404,113			999,256		(1,370,894		)	(966,781		)	(47,375		)
Fidelity VIP High Income Portfolio	38,219		12,029		26,190			(15,621		)	—		(40,035		)	(55,656		)	(29,466		)
Fidelity VIP Asset Manager Portfolio	55,155		45,925		9,230			129,128			112,404		(462,889		)	(333,761		)	(212,127		)
Fidelity VIP Contrafund® Portfolio	102,015		201,695		(99,680		)	857,438			1,321,718		(3,044,830		)	(2,187,392		)	(965,354		)
Fidelity VIP Index 500 Portfolio	109,636		81,912		27,724			343,953			29,130		(713,015		)	(369,062		)	(312,208		)
Fidelity VIP Investment Grade Bond Portfolio	70,353		41,263		29,090			392			20,077		(116,505		)	(116,113		)	(66,946		)
Fidelity VIP Government Money Market	132,866		117,916		14,950			—			—		(3		)	(3		)	14,947
Non-Affiliated Service Class:
Fidelity VIP Equity-Income Portfolio	4,726		3,543		1,183			6,389			16,397		(46,988		)	(40,599		)	(23,019		)
Fidelity VIP Growth Portfolio	990		8,996		(8,006		)	78,783			100,487		(172,956		)	(94,173		)	(1,692		)
Fidelity VIP High Income Portfolio	9,005		2,854		6,151			(5,269		)	—		(8,874		)	(14,143		)	(7,992		)
Fidelity VIP Asset Manager Portfolio	57		53		4			(29		)	118		(334		)	(363		)	(241		)
Fidelity VIP Contrafund® Portfolio	5,668		13,932		(8,264		)	13,722			103,619		(159,971		)	(146,249		)	(50,894		)
Fidelity VIP Balanced Portfolio	2,083		2,109		(26		)	801			7,113		(15,807		)	(15,006		)	(7,919		)
Fidelity VIP Mid Cap Portfolio	18,738		48,096		(29,358		)	146,480			315,159		(927,552		)	(781,072		)	(495,271		)
Fidelity VIP Overseas Portfolio	517		514		3			132			—		(5,948		)	(5,816		)	(5,813		)
Non-Affiliated Service Class 2:
Fidelity VIP Asset Manager Portfolio	24,198		24,710		(512		)	(32,519		)	55,093		(146,356		)	(178,875		)	(124,294		)
Fidelity VIP Balanced Portfolio	83,841		91,979		(8,138		)	146,107			337,322		(850,675		)	(704,568		)	(375,384		)
Fidelity VIP Contrafund® Portfolio	157,187		527,058		(369,871		)	1,329,268			3,243,516		(6,743,476		)	(5,414,208		)	(2,540,563		)
Fidelity VIP Disciplined Small Cap Portfolio	12,445		30,216		(17,771		)	72,389			196,410		(551,652		)	(479,263		)	(300,624		)
Fidelity VIP Equity-Income Portfolio	90,916		66,746		24,170			88,244			219,837		(759,520		)	(671,276		)	(427,269		)
Fidelity VIP Freedom 2010 Portfolio	9,629		13,386		(3,757		)	12,914			17,460		(83,204		)	(70,290		)	(56,587		)
Fidelity VIP Freedom 2015 Portfolio	19,075		21,608		(2,533		)	12,743			57,742		(159,171		)	(146,428		)	(91,219		)
Fidelity VIP Freedom 2020 Portfolio	61,510		71,947		(10,437		)	156,504			159,044		(664,856		)	(508,352		)	(359,745		)
Fidelity VIP Freedom 2025 Portfolio	57,295		70,072		(12,777		)	79,825			93,411		(552,314		)	(472,489		)	(391,855		)
Fidelity VIP Freedom 2030 Portfolio	9,626		10,258		(632		)	5,548			16,946		(105,404		)	(99,856		)	(83,542		)

Separate Account I

Integrity Life Insurance Company

Statement of Operations (continued)

Year Ended December 31, 2018



	Investment							Realized and unrealized gain (loss) on investments
	Income		Expenses
Subaccount	Reinvested dividends		Mortality and expense risk and administrative charges		Net investment income (loss)			Realized gain (loss) on sales of investments			Realized gain distributions		Change in net unrealized appreciation (depreciation) during the period			Net realized and unrealized gain (loss) on investments			Net increase (decrease) in net assets resulting from operations
Non-Affiliated Service Class 2 (continued):
Fidelity VIP Growth Portfolio	$	3,845	$	144,133	$	(140,288	)	$	286,059		$	1,330,720	$	(1,848,897	)	$	(1,562,838	)	$	(372,406	)
Fidelity VIP High Income Portfolio	443,979		139,734		304,245			(310,386		)	—		(395,300		)	(705,686		)	(401,441		)
Fidelity VIP Index 500 Portfolio	663,256		619,828		43,428			1,859,427			199,790		(4,534,520		)	(2,675,093		)	(2,431,875		)
Fidelity VIP Investment Grade Bond Portfolio	749,305		479,361		269,944			(156,681		)	204,763		(1,073,081		)	(1,229,762		)	(755,055		)
Fidelity VIP Mid Cap Portfolio	36,467		132,213		(95,746		)	132,495			818,049		(2,239,470		)	(2,106,975		)	(1,384,672		)
Fidelity VIP Overseas Portfolio	42,753		47,509		(4,756		)	124,740			—		(666,365		)	(541,625		)	(546,381		)
Fidelity VIP Target Volatility Portfolio	49,374		47,407		1,967			10,965			97,031		(345,253		)	(334,288		)	(235,290		)
Non-Affiliated Class 1:
Columbia VP – Mid Cap Value Fund	—		22,611		(22,611		)	41,900			—		(248,373		)	(206,473		)	(229,084		)
Franklin Growth and Income VIP Fund	51,945		27,064		24,881			32,797			51,850		(217,852		)	(185,055		)	(108,324		)
Franklin Income VIP Fund	242,905		65,168		177,737			206,923			—		(608,757		)	(401,834		)	(224,097		)
JP Morgan IT Mid Cap Value	7,276		10,050		(2,774		)	109,394			12,161		(200,745		)	(91,351		)	(81,964		)
Morgan Stanley VIF Emerging Markets Debt Portfolio	24,433		5,940		18,493			(14,315		)	—		(42,987		)	(57,302		)	(38,809		)
Morgan Stanley VIF U.S. Real Estate Portfolio	43,836		22,228		21,608			104,961			—		(281,643		)	(176,682		)	(155,074		)
Non-Affiliated Class 2:
American Funds I.S. Managed Risk Asset Allocation Fund	68,413		77,442		(9,029		)	24,446			198,440		(543,757		)	(519,311		)	(329,900		)
Columbia VP – Small Cap Value Fund	7,294		55,252		(47,958		)	127,030			623,832		(1,404,654		)	(1,277,624		)	(701,750		)
Franklin Growth and Income VIP Fund	178,256		105,422		72,834			261,659			196,624		(931,888		)	(670,229		)	(400,771		)
Franklin Income VIP Fund	1,096,355		301,809		794,546			(21,648		)	—		(1,891,110		)	(1,912,758		)	(1,118,212		)
Franklin Large Cap Growth VIP Fund	—		74,717		(74,717		)	257,194			371,890		(656,664		)	(399,470		)	(102,297		)
Franklin Mutual Shares VIP Fund	494,950		304,039		190,911			26,562			770,694		(3,099,230		)	(3,072,668		)	(2,111,063		)
Franklin Small Cap Value VIP Fund	15,013		24,007		(8,994		)	(32,243		)	255,673		(442,172		)	(474,415		)	(227,736		)
Invesco V.I. American Franchise Fund	—		49,633		(49,633		)	211,046			198,623		(507,092		)	(296,046		)	(147,056		)
Invesco V.I. American Value Fund	16,021		108,487		(92,466		)	246,504			1,155,567		(2,419,689		)	(2,173,185		)	(1,110,084		)
Invesco V.I. Comstock Fund	149,234		155,569		(6,335		)	260,408			1,026,449		(2,703,755		)	(2,443,347		)	(1,423,233		)
Invesco V.I. International Growth Fund	74,411		58,210		16,201			31,363			29,187		(773,463		)	(742,100		)	(696,712		)
Invesco V.I. Mid Cap Growth Fund	—		5,584		(5,584		)	(67		)	53,629		(98,649		)	(98,716		)	(50,671		)
Templeton Foreign VIP Fund	301,242		165,804		135,438			(235,402		)	—		(1,793,891		)	(2,029,293		)	(1,893,855		)
Templeton Global Bond VIP Fund	—		74,391		(74,391		)	(13,770		)	—		107,759			93,989			19,598
Templeton Growth VIP Fund	61,739		43,588		18,151			40,312			261,468		(820,363		)	(780,051		)	(500,432		)
Morgan Stanley VIF Emerging Markets Debt Portfolio	81,375		20,843		60,532			(67,017		)	—		(122,426		)	(189,443		)	(128,911		)
Morgan Stanley VIF Emerging Markets Equity Portfolio	11,278		46,785		(35,507		)	314,112			—		(890,546		)	(576,434		)	(611,941		)
Morgan Stanley VIF U.S. Real Estate Portfolio	100,204		59,785		40,419			102,471			—		(526,342		)	(423,871		)	(383,452		)
Non-Affiliated Class 3:
BlackRock Capital Appreciation V.I. Fund	—		145,376		(145,376		)	404,416			2,798,985		(2,972,838		)	(2,568,422		)	85,187
BlackRock Global Allocation V.I. Fund	14,257		25,136		(10,879		)	(18,829		)	73,509		(201,301		)	(220,130		)	(157,500		)
BlackRock High Yield V.I. Fund	21,052		5,806		15,246			(465		)	—		(39,092		)	(39,557		)	(24,311		)
BlackRock Total Return V.I. Fund	32,954		20,169		12,785			(6,930		)	—		(27,168		)	(34,098		)	(21,313		)
TOPS® Managed Risk Moderate Growth ETF Portfolio	63,886		61,930		1,956			24,143			194,252		(584,450		)	(560,307		)	(364,099		)
Non-Affiliated Class 4:
American Funds I.S. Bond Fund	37,097		23,067		14,030			(10,326		)	2,066		(34,265		)	(44,591		)	(28,495		)

Separate Account I

Integrity Life Insurance Company

Statement of Operations (continued)

Year Ended December 31, 2018



	Investment							Realized and unrealized gain (loss) on investments
	Income		Expenses
Subaccount	Reinvested dividends		Mortality and expense risk and administrative charges		Net investment income (loss)			Realized gain (loss) on sales of investments			Realized gain distributions		Change in net unrealized appreciation (depreciation) during the period			Net realized and unrealized gain (loss) on investments			Net increase (decrease) in net assets resulting from operations
Non-Affiliated Class 4 (continued):
American Funds I.S. Capital Income Builder Fund	$	17,888	$	9,534	$	8,354		$	2,943		$	1,365	$	(73,318	)	$	(70,375	)	$	(60,656	)
American Funds I.S. Global Growth Fund	62,987		193,552		(130,565		)	139,533			898,376		(2,189,545		)	(2,050,012		)	(1,282,201		)
American Funds I.S. Growth Fund	14,929		85,118		(70,189		)	77,895			552,129		(747,647		)	(669,752		)	(187,812		)
American Funds I.S. Growth-Income Fund	240,604		297,427		(56,823		)	359,978			1,335,563		(2,177,907		)	(1,817,929		)	(539,189		)
American Funds I.S. New World Fund	8,568		16,026		(7,458		)	33,844			30,348		(259,355		)	(225,511		)	(202,621		)
Non-Affiliated Class A:
DWS Small Cap Index VIP Fund	5,938		7,796		(1,858		)	15,144			42,143		(126,278		)	(111,134		)	(70,849		)
Non-Affiliated Class B:
DWS Small Cap Index VIP Fund	10,724		25,855		(15,131		)	79,316			104,461		(476,919		)	(397,603		)	(308,273		)
Advisor Class:
PIMCO VIT All Asset Portfolio	38,251		21,077		17,174			17,896			—		(131,568		)	(113,672		)	(96,498		)
PIMCO VIT International Bond Portfolio (US Dollar Hedged)	798		822		(24		)	(249		)	419		309			60			455
PIMCO VIT CommodityRealReturn® Strategy Portfolio	42,186		32,519		9,667			(144,967		)	—		(172,115		)	(317,082		)	(307,415		)
PIMCO VIT Long-Term U.S. Government Portfolio	6,587		4,116		2,471			(11,651		)	1,216		(6,856		)	(18,507		)	(14,820		)
PIMCO VIT Low Duration Portfolio	84,384		64,740		19,644			(19,455		)	—		(51,731		)	(71,186		)	(51,542		)
PIMCO VIT Real Return Portfolio	33,989		18,857		15,132			(38,621		)	—		(24,438		)	(63,059		)	(47,927		)
PIMCO VIT Total Return Portfolio	992,786		610,625		382,161			(516,178		)	484,941		(1,256,974		)	(1,773,152		)	(906,050		)
Investor Class:
Guggenheim VT Global Managed Futures Strategy Fund	—		8,893		(8,893		)	(22,577		)	—		(33,038		)	(55,615		)	(64,508		)
Guggenheim VT Multi-Hedge Strategies Fund	—		5,229		(5,229		)	3,978			—		(24,372		)	(20,394		)	(25,623		)
Guggenheim VT Long Short Equity Fund	—		3,407		(3,407		)	9,661			33,228		(77,553		)	(67,892		)	(38,071		)
ETF Shares:
iShares® Core S&P 500 ETF	1,556,574		2,127,279		(570,705		)	10,082,300			—		(14,741,914		)	(4,659,614		)	(5,230,319		)
iShares® Core S&P Mid-Cap ETF	354,472		610,612		(256,140		)	2,427,264			—		(5,338,710		)	(2,911,446		)	(3,167,586		)
iShares® Core S&P Small-Cap ETF	167,760		318,643		(150,883		)	1,590,189			—		(2,647,198		)	(1,057,009		)	(1,207,892		)
iShares® Core U.S. Aggregate Bond ETF	37,352		35,828		1,524			35,922			—		(74,305		)	(38,383		)	(36,859		)
iShares® iBoxx $ High Yield Corporate Bond ETF	37,912		15,892		22,020			15,421			—		(66,700		)	(51,279		)	(29,259		)
iShares® Intermediate-Term Corporate Bond ETF	43,459		36,225		7,234			45,383			—		(100,202		)	(54,819		)	(47,585		)
iShares® International Treasury Bond ETF	34,704		285,437		(250,733		)	111,297			—		(428,570		)	(317,273		)	(568,006		)
iShares® S&P 500 Growth ETF	103,293		224,276		(120,983		)	1,200,218			—		(1,262,550		)	(62,332		)	(183,315		)
iShares® S&P 500 Value ETF	93,766		95,534		(1,768		)	384,335			—		(802,495		)	(418,160		)	(419,928		)
iShares® TIPS Bond ETF	5,326		4,653		673			2,189			—		(10,467		)	(8,278		)	(7,605		)
Vanguard® Developed Markets Index Fund, ETF Shares	338,152		299,224		38,928			615,998			—		(2,761,880		)	(2,145,882		)	(2,106,954		)
Vanguard® Dividend Appreciation Index Fund, ETF Shares	40,308		54,453		(14,145		)	327,477			—		(410,848		)	(83,371		)	(97,516		)
Vanguard® Emerging Markets Stock Index Fund, ETF Shares	13,441		14,163		(722		)	50,212			—		(141,232		)	(91,020		)	(91,742		)
Vanguard® Intermediate-Term Corporate Bond Index Fund, ETF Shares	7,937		5,353		2,584			3,575			—		(15,757		)	(12,182		)	(9,598		)
Vanguard® Large-Cap Index Fund, ETF Shares	32,630		42,844		(10,214		)	209,098			—		(284,417		)	(75,319		)	(85,533		)
Vanguard® Mega Cap Index Fund, ETF Shares	2,847		3,454		(607		)	24,176			—		(27,781		)	(3,605		)	(4,212		)
Vanguard® Real Estate Index Fund, ETF Shares	31,767		16,800		14,967			33,528			—		(109,088		)	(75,560		)	(60,593		)
Vanguard® Short-Term Bond Index Fund, ETF Shares	7,149		9,755		(2,606		)	1,310			—		(3,872		)	(2,562		)	(5,168		)
Vanguard® Total Bond Market Index Fund, ETF Shares	2,294,779		2,110,752		184,027			1,551,015			19,679		(3,939,688		)	(2,388,673		)	(2,184,967		)

Separate Account I

Integrity Life Insurance Company

Statement of Changes in Net Assets

For the Year Ended December 31, 2018



	Inccrease (deccrease) in net assets from operations												Increase (decrease) in net assets from contract related transactions																					Unit Transactions
Subaccount	Net investment income (loss)			Realized gain (loss)			Change in net unrealized appreciation (depreciation) during the period			Net increase (decrease) in net assets resulting from operations			Contributions from contract holders		Contract terminations and benefits			Net transfers among investment options			Contract maintenance charges			Net increase (decrease) in net assets from contract related transactions			Increase (decrease) in net assets			Net assets, beginning of period		Net assets, end of period		Units purchased	Units redeemed	Increase (decrease) in units
Affiliated:
Touchstone VST Active Bond Fund	$	78,899		$	(53,144	)	$	(438,294	)	$	(412,539	)	$	1,342,393	$	(1,270,562	)	$	239,730		$	(140,495	)	$	171,066		$	(241,473	)	$	12,867,729	$	12,626,256	144,536	131,464	13,072
Touchstone VST Aggressive ETF Fund	34,977			1,038,409			(2,225,216		)	(1,151,830		)	370,308		(1,233,308		)	(81,780		)	(38,914		)	(983,694		)	(2,135,524		)	13,657,747		11,522,223		36,680	84,556	(47,876	)
Touchstone VST Conservative ETF Fund	25,556			(60,503		)	(626,037		)	(660,984		)	427,269		(2,168,049		)	3,813,986			(79,061		)	1,994,145			1,333,161			9,655,447		10,988,608		410,303	289,288	121,015
Touchstone VST Focused Fund	(263,257		)	520,008			(2,580,755		)	(2,324,004		)	399,928		(3,045,187		)	(330,376		)	(69,170		)	(3,044,805		)	(5,368,809		)	29,043,001		23,674,192		27,932	145,865	(117,933	)
Touchstone VST Large Cap Core Equity Fund	(154,385		)	1,471,324			(2,481,894		)	(1,164,955		)	328,833		(5,376,060		)	717,716			(39,859		)	(4,369,370		)	(5,534,325		)	18,754,810		13,220,485		107,984	361,026	(253,042	)
Touchstone VST Moderate ETF Fund	51,898			195,902			(1,032,121		)	(784,321		)	221,823		(1,600,978		)	(406,376		)	(42,548		)	(1,828,079		)	(2,612,400		)	12,220,649		9,608,249		34,696	145,482	(110,786	)
Non-Affiliated Initial Class:
Fidelity VIP Balanced Portfolio	1,634			185,148			(307,149		)	(120,367		)	—		(268,270		)	—			(920		)	(269,190		)	(389,557		)	2,518,875		2,129,318		—	12,103	(12,103	)
Fidelity VIP Overseas Portfolio	2,818			(4,057		)	(315,852		)	(317,091		)	—		(133,285		)	(90,275		)	(1,621		)	(225,181		)	(542,272		)	2,174,029		1,631,757		1	8,765	(8,764	)
Fidelity VIP Equity-Income Portfolio	81,291			510,235			(1,465,496		)	(873,970		)	8,316		(700,546		)	(401,254		)	(2,995		)	(1,096,479		)	(1,970,449		)	10,332,125		8,361,676		2,704	22,525	(19,821	)
Fidelity VIP Growth Portfolio	(79,850		)	1,403,369			(1,370,894		)	(47,375		)	—		(564,182		)	(73,214		)	(2,528		)	(639,924		)	(687,299		)	6,934,778		6,247,479		—	4,514	(4,514	)
Fidelity VIP High Income Portfolio	26,190			(15,621		)	(40,035		)	(29,466		)	146,057		(197,408		)	(459,204		)	(328		)	(510,883		)	(540,349		)	1,117,532		577,183		3,978	21,532	(17,554	)
Fidelity VIP Asset Manager Portfolio	9,230			241,532			(462,889		)	(212,127		)	14,250		(370,399		)	(16,921		)	(1,734		)	(374,804		)	(586,931		)	3,588,386		3,001,455		245	6,881	(6,636	)
Fidelity VIP Contrafund® Portfolio	(99,680		)	2,179,156			(3,044,830		)	(965,354		)	29,829		(1,763,369		)	(354,512		)	(4,954		)	(2,093,006		)	(3,058,360		)	15,539,434		12,481,074		2,191	35,550	(33,359	)
Fidelity VIP Index 500 Portfolio	27,724			373,083			(713,015		)	(312,208		)	—		(552,456		)	(12,013		)	(2,334		)	(566,803		)	(879,011		)	6,149,865		5,270,854		212	14,874	(14,662	)
Fidelity VIP Investment Grade Bond Portfolio	29,090			20,469			(116,505		)	(66,946		)	—		(525,482		)	(79,562		)	(2,065		)	(607,109		)	(674,055		)	3,418,141		2,744,086		2	31,514	(31,512	)
Fidelity VIP Government Money Market	14,950			—			(3		)	14,947			958,124		(3,653,941		)	3,410,559			(10,578		)	704,164			719,111			7,989,871		8,708,982		1,065,759	995,785	69,974
Non-Affiliated Service Class:
Fidelity VIP Equity-Income Portfolio	1,183			22,786			(46,988		)	(23,019		)	672		(58,923		)	(114,344		)	(81		)	(172,676		)	(195,695		)	371,088		175,393		29	8,263	(8,234	)
Fidelity VIP Growth Portfolio	(8,006		)	179,270			(172,956		)	(1,692		)	—		(48,275		)	(93,407		)	(389		)	(142,071		)	(143,763		)	695,152		551,389		—	6,447	(6,447	)
Fidelity VIP High Income Portfolio	6,151			(5,269		)	(8,874		)	(7,992		)	—		(12,145		)	(137,777		)	(75		)	(149,997		)	(157,989		)	290,677		132,688		—	9,319	(9,319	)
Fidelity VIP Asset Manager Portfolio	4			89			(334		)	(241		)	—		(190		)	—			(18		)	(208		)	(449		)	3,687		3,238		—	12	(12	)
Fidelity VIP Contrafund® Portfolio	(8,264		)	117,341			(159,971		)	(50,894		)	3,443		(245,641		)	(170,842		)	(202		)	(413,242		)	(464,136		)	1,209,019		744,883		2,387	15,659	(13,272	)
Fidelity VIP Balanced Portfolio	(26		)	7,914			(15,807		)	(7,919		)	—		(1,606		)	—			(64		)	(1,670		)	(9,589		)	141,646		132,057		—	80	(80	)
Fidelity VIP Mid Cap Portfolio	(29,358		)	461,639			(927,552		)	(495,271		)	—		(379,100		)	(194,562		)	(1,225		)	(574,887		)	(1,070,158		)	3,772,816		2,702,658		—	8,155	(8,155	)
Fidelity VIP Overseas Portfolio	3			132			(5,948		)	(5,813		)	—		(571		)	—			—			(571		)	(6,384		)	36,726		30,342		—	32	(32	)
Non-Affiliated Service Class 2:
Fidelity VIP Asset Manager Portfolio	(512		)	22,574			(146,356		)	(124,294		)	28,045		(142,954		)	64,182			(4,135		)	(54,862		)	(179,156		)	1,684,120		1,504,964		16,880	21,126	(4,246	)
Fidelity VIP Balanced Portfolio	(8,138		)	483,429			(850,675		)	(375,384		)	407,971		(777,766		)	73,402			(15,236		)	(311,629		)	(687,013		)	6,662,665		5,975,652		35,705	51,472	(15,767	)
Fidelity VIP Contrafund® Portfolio	(369,871		)	4,572,784			(6,743,476		)	(2,540,563		)	725,442		(3,646,353		)	(1,493,683		)	(168,968		)	(4,583,562		)	(7,124,125		)	38,466,482		31,342,357		80,027	281,311	(201,284	)
Fidelity VIP Disciplined Small Cap Portfolio	(17,771		)	268,799			(551,652		)	(300,624		)	347,018		(256,627		)	(177,618		)	(14,992		)	(102,219		)	(402,843		)	2,226,501		1,823,658		24,775	30,420	(5,645	)
Fidelity VIP Equity-Income Portfolio	24,170			308,081			(759,520		)	(427,269		)	99,753		(639,780		)	(208,184		)	(21,428		)	(769,639		)	(1,196,908		)	5,142,122		3,945,214		24,335	63,691	(39,356	)
Fidelity VIP Freedom 2010 Portfolio	(3,757		)	30,374			(83,204		)	(56,587		)	—		(26,933		)	97,695			(4,961		)	65,801			9,214			634,733		643,947		41,894	38,583	3,311
Fidelity VIP Freedom 2015 Portfolio	(2,533		)	70,485			(159,171		)	(91,219		)	121,570		(237,956		)	(21,047		)	(13,293		)	(150,726		)	(241,945		)	1,520,591		1,278,646		5,362	15,805	(10,443	)
Fidelity VIP Freedom 2020 Portfolio	(10,437		)	315,548			(664,856		)	(359,745		)	422,188		(1,008,812		)	(102,027		)	(37,023		)	(725,674		)	(1,085,419		)	5,176,595		4,091,176		25,456	78,377	(52,921	)
Fidelity VIP Freedom 2025 Portfolio	(12,777		)	173,236			(552,314		)	(391,855		)	435,870		(125,631		)	(207,995		)	(45,483		)	56,761			(335,094		)	4,685,560		4,350,466		33,820	30,632	3,188
Fidelity VIP Freedom 2030 Portfolio	(632		)	22,494			(105,404		)	(83,542		)	206,560		(7,571		)	24,971			(366		)	223,594			140,052			628,591		768,643		14,646	522	14,124
Fidelity VIP Growth Portfolio	(140,288		)	1,616,779			(1,848,897		)	(372,406		)	988,195		(756,072		)	1,191,980			(48,402		)	1,375,701			1,003,295			9,069,513		10,072,808		141,219	86,245	54,974
Fidelity VIP High Income Portfolio	304,245			(310,386		)	(395,300		)	(401,441		)	53,676		(2,092,909		)	(4,632,582		)	(13,275		)	(6,685,090		)	(7,086,531		)	13,128,079		6,041,548		137,199	488,938	(351,739	)
Fidelity VIP Index 500 Portfolio	43,428			2,059,217			(4,534,520		)	(2,431,875		)	2,813,084		(4,381,504		)	2,512,614			(133,527		)	810,667			(1,621,208		)	40,811,857		39,190,649		349,184	300,719	48,465
Fidelity VIP Investment Grade Bond Portfolio	269,944			48,082			(1,073,081		)	(755,055		)	3,795,913		(3,505,606		)	(203,690		)	(308,840		)	(222,223		)	(977,278		)	33,191,879		32,214,601		320,163	346,745	(26,582	)
Fidelity VIP Mid Cap Portfolio	(95,746		)	950,544			(2,239,470		)	(1,384,672		)	114,675		(1,176,585		)	(101,810		)	(18,180		)	(1,181,900		)	(2,566,572		)	9,894,557		7,327,985		33,885	79,640	(45,755	)
Fidelity VIP Overseas Portfolio	(4,756		)	124,740			(666,365		)	(546,381		)	69,593		(353,559		)	(61,261		)	(9,711		)	(354,938		)	(901,319		)	3,674,456		2,773,137		23,205	49,642	(26,437	)
Fidelity VIP Target Volatility Portfolio	1,967			107,996			(345,253		)	(235,290		)	51,279		(136,538		)	(30,223		)	(50,210		)	(165,692		)	(400,982		)	3,342,917		2,941,935		6,359	19,833	(13,474	)
Non-Affiliated Class 1:
Columbia VP – Mid Cap Value Fund	(22,611		)	41,900			(248,373		)	(229,084		)	42,245		(159,206		)	48,152			(3,845		)	(72,654		)	(301,738		)	1,663,464		1,361,726		8,616	12,790	(4,174	)
Franklin Growth and Income VIP Fund	24,881			84,647			(217,852		)	(108,324		)	—		(126,170		)	(1,198		)	(1,115		)	(128,483		)	(236,807		)	2,039,865		1,803,058		—	4,963	(4,963	)
Franklin Income VIP Fund	177,737			206,923			(608,757		)	(224,097		)	60,306		(892,739		)	(186,815		)	(1,262		)	(1,020,510		)	(1,244,607		)	5,285,383		4,040,776		893	39,388	(38,495	)
JP Morgan IT Mid Cap Value	(2,774		)	121,555			(200,745		)	(81,964		)	—		(189,491		)	—			(1,072		)	(190,563		)	(272,527		)	778,613		506,086		2	5,759	(5,757	)
Morgan Stanley VIF Emerging Markets Debt Portfolio	18,493			(14,315		)	(42,987		)	(38,809		)	60		(111,889		)	(9,442		)	(408		)	(121,679		)	(160,488		)	496,104		335,616		56	4,806	(4,750	)
Morgan Stanley VIF U.S. Real Estate Portfolio	21,608			104,961			(281,643		)	(155,074		)	936		(219,895		)	(131,833		)	(1,449		)	(352,241		)	(507,315		)	1,913,768		1,406,453		36	9,262	(9,226	)
Non-Affiliated Class 2:
American Funds I.S. Managed Risk Asset Allocation Fund	(9,029		)	222,886			(543,757		)	(329,900		)	99,673		(251,761		)	289,079			(60,078		)	76,913			(252,987		)	5,098,488		4,845,501		37,360	31,296	6,064
Columbia VP – Small Cap Value Fund	(47,958		)	750,862			(1,404,654		)	(701,750		)	86,736		(405,473		)	(539,022		)	(20,991		)	(878,750		)	(1,580,500		)	4,408,950		2,828,450		38,344	69,402	(31,058	)

Separate Account I

Integrity Life Insurance Company

Statement of Changes in Net Assets (continued)

For the Year Ended December 31, 2018



	Inccrease (deccrease) in net assets from operations												Increase (decrease) in net assets from contract related transactions																					Unit Transactions
Subaccount	Net investment income (loss)			Realized gain (loss)			Change in net unrealized appreciation (depreciation) during the period			Net increase (decrease) in net assets resulting from operations			Contributions from contract holders		Contract terminations and benefits			Net transfers among investment options			Contract maintenance charges			Net increase (decrease) in net assets from contract related transactions			Increase (decrease) in net assets			Net assets, beginning of period		Net assets, end of period		Units purchased	Units redeemed	Increase (decrease) in units
Non-Affiliated Class 2 (continued):
Franklin Growth and Income VIP Fund	$	72,834		$	458,283		$	(931,888	)	$	(400,771	)	$	88,965	$	(860,536	)	$	(360,560	)	$	(21,183	)	$	(1,153,314	)	$	(1,554,085	)	$	8,000,732	$	6,446,647	16,187	79,090	(62,903	)
Franklin Income VIP Fund	794,546			(21,648		)	(1,891,110		)	(1,118,212		)	447,539		(1,581,922		)	(2,295,218		)	(35,116		)	(3,464,717		)	(4,582,929		)	23,474,421		18,891,492		52,377	242,392	(190,015	)
Franklin Large Cap Growth VIP Fund	(74,717		)	629,084			(656,664		)	(102,297		)	96,582		(528,916		)	(98,080		)	(27,681		)	(558,095		)	(660,392		)	5,125,289		4,464,897		46,694	82,763	(36,069	)
Franklin Mutual Shares VIP Fund	190,911			797,256			(3,099,230		)	(2,111,063		)	1,869,995		(2,505,106		)	(560,787		)	(136,565		)	(1,332,463		)	(3,443,526		)	21,855,418		18,411,892		126,244	214,926	(88,682	)
Franklin Small Cap Value VIP Fund	(8,994		)	223,430			(442,172		)	(227,736		)	16,316		(205,166		)	138,626			(7,556		)	(57,780		)	(285,516		)	1,665,405		1,379,889		14,822	18,050	(3,228	)
Invesco V.I. American Franchise Fund	(49,633		)	409,669			(507,092		)	(147,056		)	120,503		(384,825		)	530,416			(17,858		)	248,236			101,180			2,966,375		3,067,555		48,119	36,036	12,083
Invesco V.I. American Value Fund	(92,466		)	1,402,071			(2,419,689		)	(1,110,084		)	1,557,888		(917,115		)	610,190			(66,163		)	1,184,800			74,716			6,523,720		6,598,436		196,638	134,973	61,665
Invesco V.I. Comstock Fund	(6,335		)	1,286,857			(2,703,755		)	(1,423,233		)	1,040,694		(1,359,314		)	(226,383		)	(84,925		)	(629,928		)	(2,053,161		)	11,076,127		9,022,966		95,703	136,485	(40,782	)
Invesco V.I. International Growth Fund	16,201			60,550			(773,463		)	(696,712		)	660,871		(397,065		)	(83,312		)	(39,672		)	140,822			(555,890		)	4,182,863		3,626,973		70,542	58,860	11,682
Invesco V.I. Mid Cap Growth Fund	(5,584		)	53,562			(98,649		)	(50,671		)	160,124		(20,626		)	104,561			(4,733		)	239,326			188,655			264,620		453,275		23,759	5,801	17,958
Templeton Foreign VIP Fund	135,438			(235,402		)	(1,793,891		)	(1,893,855		)	1,041,009		(3,020,328		)	119,039			(62,827		)	(1,923,107		)	(3,816,962		)	12,808,151		8,991,189		109,688	297,386	(187,698	)
Templeton Global Bond VIP Fund	(74,391		)	(13,770		)	107,759			19,598			61,403		(337,928		)	(18,940		)	(4,057		)	(299,522		)	(279,924		)	5,018,142		4,738,218		9,254	41,040	(31,786	)
Templeton Growth VIP Fund	18,151			301,780			(820,363		)	(500,432		)	4,846		(213,016		)	(34,579		)	(3,638		)	(246,387		)	(746,819		)	3,323,581		2,576,762		8,827	20,701	(11,874	)
Morgan Stanley VIF Emerging Markets Debt Portfolio	60,532			(67,017		)	(122,426		)	(128,911		)	1,680		(155,231		)	(508,516		)	(3,340		)	(665,407		)	(794,318		)	1,682,724		888,406		4,233	50,724	(46,491	)
Morgan Stanley VIF Emerging Markets Equity Portfolio	(35,507		)	314,112			(890,546		)	(611,941		)	46,017		(546,331		)	(31,148		)	(8,678		)	(540,140		)	(1,152,081		)	3,789,073		2,636,992		82,014	99,464	(17,450	)
Morgan Stanley VIF U.S. Real Estate Portfolio	40,419			102,471			(526,342		)	(383,452		)	298,909		(543,871		)	(173,518		)	(28,512		)	(446,992		)	(830,444		)	4,448,255		3,617,811		35,647	70,255	(34,608	)
Non-Affiliated Class 3:
BlackRock Capital Appreciation V.I. Fund	(145,376		)	3,203,401			(2,972,838		)	85,187			1,947,011		(619,583		)	(118,790		)	(109,327		)	1,099,311			1,184,498			8,358,733		9,543,231		174,759	112,405	62,354
BlackRock Global Allocation V.I. Fund	(10,879		)	54,680			(201,301		)	(157,500		)	16,404		(532,327		)	132,957			(2,277		)	(385,243		)	(542,743		)	2,030,317		1,487,574		15,417	47,649	(32,232	)
BlackRock High Yield V.I. Fund	15,246			(465		)	(39,092		)	(24,311		)	34,735		(32,603		)	373,885			(2,900		)	373,117			348,806			207,724		556,530		38,197	4,832	33,365
BlackRock Total Return V.I. Fund	12,785			(6,930		)	(27,168		)	(21,313		)	46,805		(69,646		)	695,227			(16,701		)	655,685			634,372			855,515		1,489,887		80,621	13,830	66,791
TOPS® Managed Risk Moderate Growth ETF Portfolio	1,956			218,395			(584,450		)	(364,099		)	73,957		(157,084		)	(21,273		)	(54,606		)	(159,006		)	(523,105		)	4,268,585		3,745,480		10,696	24,901	(14,205	)
Non-Affiliated Class 4:
American Funds I.S. Bond Fund	14,030			(8,260		)	(34,265		)	(28,495		)	176,157		(62,802		)	450,867			(18,071		)	546,151			517,656			1,127,062		1,644,718		70,624	14,892	55,732
American Funds I.S. Capital Income Builder Fund	8,354			4,308			(73,318		)	(60,656		)	14,595		(16,136		)	137,555			(3,554		)	132,460			71,804			640,421		712,225		20,333	7,268	13,065
American Funds I.S. Global Growth Fund	(130,565		)	1,037,909			(2,189,545		)	(1,282,201		)	403,896		(993,465		)	(260,980		)	(4,527		)	(855,076		)	(2,137,277		)	13,020,291		10,883,014		29,955	89,928	(59,973	)
American Funds I.S. Growth Fund	(70,189		)	630,024			(747,647		)	(187,812		)	603,003		(371,804		)	668,904			(6,218		)	893,885			706,073			4,842,329		5,548,402		78,139	26,425	51,714
American Funds I.S. Growth-Income Fund	(56,823		)	1,695,541			(2,177,907		)	(539,189		)	764,772		(1,902,501		)	214,390			(21,335		)	(944,674		)	(1,483,863		)	19,457,689		17,973,826		201,047	256,795	(55,748	)
American Funds I.S. New World Fund	(7,458		)	64,192			(259,355		)	(202,621		)	442,173		(105,313		)	74,079			(7,723		)	403,216			200,595			1,009,277		1,209,872		57,306	21,637	35,669
Non-Affiliated Class A:
DWS Small Cap Index VIP Fund	(1,858		)	57,287			(126,278		)	(70,849		)	—		(47,671		)	112,998			(187		)	65,140			(5,709		)	475,014		469,305		6,434	4,446	1,988
Non-Affiliated Class B:
DWS Small Cap Index VIP Fund	(15,131		)	183,777			(476,919		)	(308,273		)	72,314		(169,505		)	404,893			(2,572		)	305,130			(3,143		)	1,708,761		1,705,618		59,946	50,305	9,641
Advisor Class:
PIMCO VIT All Asset Portfolio	17,174			17,896			(131,568		)	(96,498		)	120		(213,016		)	(593,470		)	(2,162		)	(808,528		)	(905,026		)	1,743,677		838,651		2,010	64,470	(62,460	)
PIMCO VIT International Bond Portfolio (US Dollar Hedged)	(24		)	170			309			455			16,500		(7,868		)	78,072			(40		)	86,664			87,119			42,130		129,249		18,652	10,361	8,291
PIMCO VIT CommodityRealReturn® Strategy Portfolio	9,667			(144,967		)	(172,115		)	(307,415		)	121,964		(244,461		)	(422,911		)	(18,678		)	(564,086		)	(871,501		)	2,520,361		1,648,860		48,822	181,316	(132,494	)
PIMCO VIT Long-Term U.S. Government Portfolio	2,471			(10,435		)	(6,856		)	(14,820		)	325		(30,516		)	(47,419		)	(456		)	(78,066		)	(92,886		)	353,355		260,469		3,162	10,850	(7,688	)
PIMCO VIT Low Duration Portfolio	19,644			(19,455		)	(51,731		)	(51,542		)	250,964		(589,721		)	1,297,341			(18,459		)	940,125			888,583			4,425,321		5,313,904		210,580	124,319	86,261
PIMCO VIT Real Return Portfolio	15,132			(38,621		)	(24,438		)	(47,927		)	25,918		(143,195		)	119,618			(1,496		)	845			(47,082		)	1,310,428		1,263,346		43,715	43,698	17
PIMCO VIT Total Return Portfolio	382,161			(31,237		)	(1,256,974		)	(906,050		)	3,710,424		(5,091,535		)	(8,861		)	(381,575		)	(1,771,547		)	(2,677,597		)	42,600,327		39,922,730		361,426	501,263	(139,837	)
Investor Class:
Guggenheim VT Global Managed Futures Strategy Fund	(8,893		)	(22,577		)	(33,038		)	(64,508		)	1,847		(61,544		)	157,329			(4,983		)	92,649			28,141			587,041		615,182		30,479	15,111	15,368
Guggenheim VT Multi-Hedge Strategies Fund	(5,229		)	3,978			(24,372		)	(25,623		)	1,490		(48,904		)	107,390			(1,804		)	58,172			32,549			379,161		411,710		16,744	9,533	7,211
Guggenheim VT Long Short Equity Fund	(3,407		)	42,889			(77,553		)	(38,071		)	660		(55,564		)	(11,972		)	(503		)	(67,379		)	(105,450		)	311,879		206,429		398	6,702	(6,304	)
ETF Shares:
iShares® Core S&P 500 ETF	(570,705		)	10,082,300			(14,741,914		)	(5,230,319		)	6,593,905		(6,467,724		)	(2,454,857		)	—			(2,328,676		)	(7,558,995		)	82,801,674		75,242,679		298,296	336,515	(38,219	)
iShares® Core S&P Mid-Cap ETF	(256,140		)	2,427,264			(5,338,710		)	(3,167,586		)	1,961,207		(1,893,432		)	557,181			—			624,956			(2,542,630		)	23,984,831		21,442,201		108,564	93,318	15,246
iShares® Core S&P Small-Cap ETF	(150,883		)	1,590,189			(2,647,198		)	(1,207,892		)	1,034,357		(992,290		)	(144,977		)	—			(102,910		)	(1,310,802		)	12,436,732		11,125,930		57,277	56,724	553
iShares® Core U.S. Aggregate Bond ETF	1,524			35,922			(74,305		)	(36,859		)	29,715		(210,229		)	88,194			—			(92,320		)	(129,179		)	1,439,513		1,310,334		10,315	14,083	(3,768	)
iShares® iBoxx $ High Yield Corporate Bond ETF	22,020			15,421			(66,700		)	(29,259		)	113,278		(43,297		)	(27,023		)	—			42,958			13,699			757,108		770,807		4,739	3,310	1,429
iShares® Intermediate-Term Corporate Bond ETF	7,234			45,383			(100,202		)	(47,585		)	169,543		(152,711		)	(98,767		)	—			(81,935		)	(129,520		)	1,348,548		1,219,028		15,925	19,261	(3,336	)
iShares® International Treasury Bond ETF	(250,733		)	111,297			(428,570		)	(568,006		)	893,088		(868,607		)	534,250			—			558,731			(9,275		)	10,987,940		10,978,665		124,671	99,917	24,754
iShares® S&P 500 Growth ETF	(120,983		)	1,200,218			(1,262,550		)	(183,315		)	682,450		(679,368		)	(379,303		)	—			(376,221		)	(559,536		)	8,619,618		8,060,082		31,881	38,207	(6,326	)
iShares® S&P 500 Value ETF	(1,768		)	384,335			(802,495		)	(419,928		)	319,918		(390,745		)	47,997			—			(22,830		)	(442,758		)	3,973,592		3,530,834		18,209	17,998	211
iShares® TIPS Bond ETF	673			2,189			(10,467		)	(7,605		)	13,390		(29,518		)	2,240			—			(13,888		)	(21,493		)	219,438		197,945		2,067	2,643	(576	)
Vanguard® Developed Markets Index Fund, ETF Shares	38,928			615,998			(2,761,880		)	(2,106,954		)	905,923		(941,369		)	1,160,736			—			1,125,290			(981,664		)	11,839,237		10,857,573		90,530	57,146	33,384
Vanguard® Dividend Appreciation Index Fund, ETF Shares	(14,145		)	327,477			(410,848		)	(97,516		)	79,682		(390,002		)	(60,589		)	—			(370,909		)	(468,425		)	2,440,951		1,972,526		9,823	17,716	(7,893	)
Vanguard® Emerging Markets Stock Index Fund, ETF Shares	(722		)	50,212			(141,232		)	(91,742		)	18,987		(105,639		)	(1,077		)	—			(87,729		)	(179,471		)	655,108		475,637		5,458	8,487	(3,029	)

Separate Account I

Integrity Life Insurance Company

Statement of Changes in Net Assets (continued)

For the Year Ended December 31, 2018



	Inccrease (deccrease) in net assets from operations											Increase (decrease) in net assets from contract related transactions																				Unit Transactions
Subaccount	Net investment income (loss)			Realized gain (loss)		Change in net unrealized appreciation (depreciation) during the period			Net increase (decrease) in net assets resulting from operations			Contributions from contract holders		Contract terminations and benefits			Net transfers among investment options			Contract maintenance charges		Net increase (decrease) in net assets from contract related transactions			Increase (decrease) in net assets			Net assets, beginning of period		Net assets, end of period		Units purchased	Units redeemed	Increase (decrease) in units
ETF Shares (continued):
Vanguard® Intermediate-Term Corporate Bond Index Fund, ETF Shares	$	2,584		$	3,575	$	(15,757	)	$	(9,598	)	$	2,467	$	(16,477	)	$	3,321		$	—	$	(10,689	)	$	(20,287	)	$	236,156	$	215,869	676	1,070	(394	)
Vanguard® Large-Cap Index Fund, ETF Shares	(10,214		)	209,098		(284,417		)	(85,533		)	109,937		(169,815		)	(56,068		)	—		(115,946		)	(201,479		)	1,744,650		1,543,171		6,377	8,182	(1,805	)
Vanguard® Mega Cap Index Fund, ETF Shares	(607		)	24,176		(27,781		)	(4,212		)	1		(30,171		)	(1,997		)	—		(32,167		)	(36,379		)	155,961		119,582		1,028	1,594	(566	)
Vanguard® Real Estate Index Fund, ETF Shares	14,967			33,528		(109,088		)	(60,593		)	129,694		(72,591		)	13,866			—		70,969			10,376			733,443		743,819		5,896	4,067	1,829
Vanguard® Short-Term Bond Index Fund, ETF Shares	(2,606		)	1,310		(3,872		)	(5,168		)	7,939		(20,353		)	(798		)	—		(13,212		)	(18,380		)	366,465		348,085		1,913	2,513	(600	)
Vanguard® Total Bond Market Index Fund, ETF Shares	184,027			1,570,694		(3,939,688		)	(2,184,967		)	6,556,088		(6,457,295		)	2,881,804			—		2,980,597			795,630			80,320,354		81,115,984		800,372	678,534	121,838

Separate Account I

Integrity Life Insurance Company

Statement of Changes in Net Assets

For the Year Ended December 31, 2017



	Inccrease (deccrease) in net assets from operations												Increase (decrease) in net assets from contract related transactions																					Unit Transactions
Subaccount	Net investment income (loss)			Realized gain (loss)			Change in net unrealized appreciation (depreciation) during the period			Net increase (decrease) in net assets resulting from operations			Contributions from contract holders		Contract terminations and benefits			Net transfers among investment options			Contract maintenance charges			Net increase (decrease) in net assets from contract related transactions			Increase (decrease) in net assets			Net assets, beginning of period		Net assets, end of period		Units purchased	Units redeemed		Increase (decrease) in units
Affiliated:
Touchstone VST Active Bond Fund	$	147,012		$	22,690		$	76,646		$	246,348		$	2,115,168	$	(1,644,698	)	$	861,623		$	(82,053	)	$	1,250,040		$	1,496,388		$	11,371,341	$	12,867,729	309,877	(208,039	)	101,838
Touchstone VST Aggressive ETF Fund	43,138			752,522			1,114,961			1,910,621			602,988		(1,286,669		)	(227,206		)	(27,958		)	(938,845		)	971,776			12,685,971		13,657,747		46,766	(95,607	)	(48,841	)
Touchstone VST Conservative ETF Fund	55,359			1,303,075			(522,756		)	835,678			337,457		(1,529,162		)	346,642			(44,137		)	(889,200		)	(53,522		)	9,708,969		9,655,447		218,378	(275,477	)	(57,099	)
Touchstone VST Focused Fund	(258,571		)	(71,913		)	3,664,264			3,333,780			994,107		(3,562,368		)	(1,457,747		)	(64,345		)	(4,090,353		)	(756,573		)	29,799,574		29,043,001		48,703	(215,313	)	(166,610	)
Touchstone VST Large Cap Core Equity Fund	(148,450		)	929,746			2,541,232			3,322,528			411,798		(2,298,599		)	(1,356,056		)	(33,743		)	(3,276,600		)	45,928			18,708,882		18,754,810		117,426	(309,186	)	(191,760	)
Touchstone VST Moderate ETF Fund	71,864			2,501,827			(1,171,914		)	1,401,777			513,314		(2,215,709		)	(149,654		)	(38,909		)	(1,890,958		)	(489,181		)	12,709,830		12,220,649		58,191	(171,890	)	(113,699	)
Non-Affiliated Initial Class:
Fidelity VIP Balanced Portfolio	2,314			125,733			215,824			343,871			—		(290,464		)	(23,943		)	(998		)	(315,405		)	28,466			2,490,409		2,518,875		1	(17,565	)	(17,564	)
Fidelity VIP Overseas Portfolio	1,204			(40,701		)	552,861			513,364			—		(243,198		)	(3,282		)	(1,592		)	(248,072		)	265,292			1,908,737		2,174,029		2	(9,017	)	(9,015	)
Fidelity VIP Equity-Income Portfolio	34,762			284,120			782,536			1,101,418			132,015		(1,082,819		)	109,995			(3,402		)	(844,211		)	257,207			10,074,918		10,332,125		5,155	(18,593	)	(13,438	)
Fidelity VIP Growth Portfolio	(77,530		)	1,058,258			939,456			1,920,184			—		(936,424		)	(11,563		)	(2,565		)	(950,552		)	969,632			5,965,146		6,934,778		2	(7,781	)	(7,779	)
Fidelity VIP High Income Portfolio	44,239			64,850			(52,930		)	56,159			2,752		(251,231		)	(14,044		)	(443		)	(262,966		)	(206,807		)	1,324,339		1,117,532		15,458	(25,034	)	(9,576	)
Fidelity VIP Asset Manager Portfolio	17,451			411,264			(10,839		)	417,876			126,808		(430,651		)	20,005			(2,012		)	(285,850		)	132,026			3,456,360		3,588,386		1,226	(6,597	)	(5,371	)
Fidelity VIP Contrafund® Portfolio	(54,805		)	1,399,493			1,398,171			2,742,859			88,540		(1,317,238		)	(13,131		)	(5,505		)	(1,247,334		)	1,495,525			14,043,909		15,539,434		4,759	(32,564	)	(27,805	)
Fidelity VIP Index 500 Portfolio	23,551			434,934			650,712			1,109,197			—		(831,805		)	(3,685		)	(2,671		)	(838,161		)	271,036			5,878,829		6,149,865		6	(27,872	)	(27,866	)
Fidelity VIP Investment Grade Bond Portfolio	35,979			62,763			8,024			106,766			—		(645,474		)	(126,272		)	(2,190		)	(773,936		)	(667,170		)	4,085,311		3,418,141		4	(46,969	)	(46,965	)
Fidelity VIP Government Money Market	(75,056		)	—			3			(75,053		)	353,282		(4,634,086		)	(1,210,776		)	(7,376		)	(5,498,956		)	(5,574,009		)	13,563,880		7,989,871		534,472	(1,098,121	)	(563,649	)
Non-Affiliated Service Class:
Fidelity VIP Equity-Income Portfolio	656			5,698			31,093			37,447			672		(5,136		)	2			(78		)	(4,540		)	32,907			338,181		371,088		33	(261	)	(228	)
Fidelity VIP Growth Portfolio	(8,344		)	109,343			86,373			187,372			—		(29,540		)	(89,651		)	(390		)	(119,581		)	67,791			627,361		695,152		2	(6,677	)	(6,675	)
Fidelity VIP High Income Portfolio	11,880			3,005			(5,493		)	9,392			—		(14,603		)	14,113			(77		)	(567		)	8,825			281,852		290,677		11,797	(12,213	)	(416	)
Fidelity VIP Asset Manager Portfolio	(59		)	2,146			(788		)	1,299			—		(11,332		)	(80		)	(21		)	(11,433		)	(10,134		)	13,821		3,687		—	(674	)	(674	)
Fidelity VIP Contrafund® Portfolio	(5,067		)	80,191			111,503			186,627			1,770		(9,509		)	81,946			(225		)	73,982			260,609			948,410		1,209,019		4,451	(2,103	)	2,348
Fidelity VIP Balanced Portfolio	(59		)	4,084			14,107			18,132			—		(1,405		)	3			(65		)	(1,467		)	16,665			124,981		141,646		—	(75	)	(75	)
Fidelity VIP Mid Cap Portfolio	(29,248		)	316,229			364,852			651,833			—		(569,829		)	(10		)	(1,340		)	(571,179		)	80,654			3,692,162		3,772,816		1	(9,227	)	(9,226	)
Fidelity VIP Overseas Portfolio	(33		)	(2		)	8,129			8,094			—		(455		)	1			—			(454		)	7,640			29,086		36,726		—	(33	)	(33	)
Non-Affiliated Service Class 2:
Fidelity VIP Asset Manager Portfolio	3,597			176,267			7,655			187,519			11,300		(83,461		)	11,886			(3,551		)	(63,826		)	123,693			1,560,427		1,684,120		5,016	(9,047	)	(4,031	)
Fidelity VIP Balanced Portfolio	(6,884		)	264,634			615,110			872,860			142,707		(678,865		)	171,996			(12,642		)	(376,804		)	496,056			6,166,609		6,662,665		24,380	(43,701	)	(19,321	)
Fidelity VIP Contrafund® Portfolio	(239,288		)	3,665,714			3,061,579			6,488,005			1,940,147		(4,324,301		)	699,896			(135,872		)	(1,820,130		)	4,667,875			33,798,607		38,466,482		200,445	(268,843	)	(68,398	)
Fidelity VIP Disciplined Small Cap Portfolio	(18,347		)	169,108			(41,234		)	109,527			400,035		(191,137		)	(365,302		)	(9,491		)	(165,895		)	(56,368		)	2,282,869		2,226,501		36,322	(47,242	)	(10,920	)
Fidelity VIP Equity-Income Portfolio	2,944			192,830			344,085			539,859			263,895		(768,497		)	18,834			(17,246		)	(503,014		)	36,845			5,105,277		5,142,122		59,726	(82,291	)	(22,565	)
Fidelity VIP Freedom 2010 Portfolio	(2,048		)	68,496			5,404			71,852			—		(259,555		)	1,359			(4,650		)	(262,846		)	(190,994		)	825,727		634,733		403	(20,116	)	(19,713	)
Fidelity VIP Freedom 2015 Portfolio	(5,591		)	60,740			142,100			197,249			50,540		(200,773		)	(144,227		)	(10,874		)	(305,334		)	(108,085		)	1,628,676		1,520,591		1,333	(23,554	)	(22,221	)
Fidelity VIP Freedom 2020 Portfolio	(11,070		)	227,479			460,796			677,205			41,865		(286,865		)	(37,552		)	(30,811		)	(313,363		)	363,842			4,812,753		5,176,595		6,576	(30,234	)	(23,658	)
Fidelity VIP Freedom 2025 Portfolio	(9,926		)	203,498			441,156			634,728			194,388		(201,693		)	98,439			(33,212		)	57,922			692,650			3,992,910		4,685,560		24,589	(20,780	)	3,809
Fidelity VIP Freedom 2030 Portfolio	(1,736		)	36,065			63,456			97,785			46,063		(26,209		)	83			(229		)	19,708			117,493			511,098		628,591		3,162	(1,888	)	1,274
Fidelity VIP Growth Portfolio	(103,193		)	697,640			1,408,486			2,002,933			1,445,702		(711,782		)	961,189			(26,545		)	1,668,564			3,671,497			5,398,016		9,069,513		177,088	(88,848	)	88,240
Fidelity VIP High Income Portfolio	516,839			(390,423		)	271,723			398,139			233,623		(2,391,604		)	(1,789,427		)	(9,061		)	(3,956,469		)	(3,558,330		)	16,686,409		13,128,079		630,787	(849,445	)	(218,658	)
Fidelity VIP Index 500 Portfolio	47,635			1,760,183			5,091,959			6,899,777			2,756,103		(3,952,696		)	(299,555		)	(96,446		)	(1,592,594		)	5,307,183			35,504,674		40,811,857		204,024	(288,554	)	(84,530	)
Fidelity VIP Investment Grade Bond Portfolio	253,135			32,437			484,349			769,921			5,597,727		(3,762,910		)	1,208,975			(203,749		)	2,840,043			3,609,964			29,581,915		33,191,879		518,884	(283,822	)	235,062
Fidelity VIP Mid Cap Portfolio	(83,708		)	570,656			1,135,130			1,622,078			376,980		(1,534,346		)	260,582			(15,990		)	(912,774		)	709,304			9,185,253		9,894,557		74,016	(104,585	)	(30,569	)
Fidelity VIP Overseas Portfolio	(8,699		)	117,981			747,849			857,131			91,777		(545,517		)	70,440			(8,424		)	(391,724		)	465,407			3,209,049		3,674,456		78,333	(114,865	)	(36,532	)
Fidelity VIP Target Volatility Portfolio	(9,482		)	214,584			211,464			416,566			184,985		(173,822		)	192,875			(36,055		)	167,983			584,549			2,758,368		3,342,917		39,882	(25,175	)	14,707
Non-Affiliated Class 1:
Columbia VP – Mid Cap Value Fund	(25,358		)	93,018			126,701			194,361			88,029		(122,040		)	(364,234		)	(3,056		)	(401,301		)	(206,940		)	1,870,404		1,663,464		11,789	(36,902	)	(25,113	)
Franklin Growth and Income VIP Fund	93,804			152,713			23,044			269,561			—		(150,948		)	5			(1,259		)	(152,202		)	117,359			1,922,506		2,039,865		—	(6,303	)	(6,303	)
Franklin Income VIP Fund	155,771			181,137			103,071			439,979			49,178		(600,606		)	(59,736		)	(1,467		)	(612,631		)	(172,652		)	5,458,035		5,285,383		79	(24,200	)	(24,121	)
JP Morgan IT Mid Cap Value	(4,380		)	60,767			30,047			86,434			—		(34,277		)	(1		)	(1,020		)	(35,298		)	51,136			727,477		778,613		2	(1,104	)	(1,102	)
Morgan Stanley VIF Emerging Markets Debt Portfolio	19,350			(3,992		)	27,834			43,192			60		(87,198		)	(22,694		)	(421		)	(110,253		)	(67,061		)	563,165		496,104		36	(4,058	)	(4,022	)
Morgan Stanley VIF U.S. Real Estate Portfolio	1,501			129,401			(104,875		)	26,027			273		(276,224		)	(100,125		)	(1,543		)	(377,619		)	(351,592		)	2,265,360		1,913,768		1,241	(10,181	)	(8,940	)
Non-Affiliated Class 2:
American Funds I.S. Managed Risk Asset Allocation Fund	(35,067		)	65,981			536,214			567,128			500,872		(280,208		)	373,319			(42,022		)	551,961			1,119,089			3,979,399		5,098,488		87,837	(38,369	)	49,468
Columbia VP – Small Cap Value Fund	(42,815		)	252,571			229,282			439,038			192,837		(299,163		)	770,056			(18,407		)	645,323			1,084,361			3,324,589		4,408,950		59,450	(36,083	)	23,367

Separate Account I

Integrity Life Insurance Company

Statement of Changes in Net Assets (continued)

For the Year Ended December 31, 2017



	Inccrease (deccrease) in net assets from operations											Increase (decrease) in net assets from contract related transactions																					Unit Transactions
Subaccount	Net investment income (loss)			Realized gain (loss)			Change in net unrealized appreciation (depreciation) during the period			Net increase (decrease) in net assets resulting from operations		Contributions from contract holders		Contract terminations and benefits			Net transfers among investment options			Contract maintenance charges			Net increase (decrease) in net assets from contract related transactions			Increase (decrease) in net assets			Net assets, beginning of period		Net assets, end of period		Units purchased	Units redeemed		Increase (decrease) in units
Non-Affiliated Class 2 (continued):
Franklin Growth and Income VIP Fund	$	340,878		$	822,597		$	(133,719	)	$	1,029,756	$	420,893	$	(1,136,959	)	$	125,244		$	(17,205	)	$	(608,027	)	$	421,729		$	7,579,003	$	8,000,732	41,153	(62,140	)	(20,987	)
Franklin Income VIP Fund	629,909			123,716			1,036,718			1,790,343		827,363		(1,454,880		)	558,845			(28,541		)	(97,213		)	1,693,130			21,781,291		23,474,421		117,916	(88,934	)	28,982
Franklin Large Cap Growth VIP Fund	(38,965		)	395,368			607,128			963,531		312,268		(708,821		)	754,257			(19,785		)	337,919			1,301,450			3,823,839		5,125,289		79,152	(57,689	)	21,463
Franklin Mutual Shares VIP Fund	169,425			1,142,531			57,875			1,369,831		2,319,996		(1,826,970		)	172,178			(103,205		)	561,999			1,931,830			19,923,588		21,855,418		180,732	(130,432	)	50,300
Franklin Small Cap Value VIP Fund	(16,616		)	66,208			98,557			148,149		93,874		(394,336		)	(122,325		)	(6,057		)	(428,844		)	(280,695		)	1,946,100		1,665,405		14,878	(40,549	)	(25,671	)
Invesco V.I. American Franchise Fund	(30,281		)	247,679			194,577			411,975		256,102		(348,276		)	1,080,581			(8,161		)	980,246			1,392,221			1,574,154		2,966,375		64,935	(15,388	)	49,547
Invesco V.I. American Value Fund	(50,544		)	3,907			507,965			461,328		2,190,038		(616,477		)	(141,481		)	(40,131		)	1,391,949			1,853,277			4,670,443		6,523,720		183,113	(102,034	)	81,079
Invesco V.I. Comstock Fund	59,319			991,263			558,568			1,609,150		1,518,457		(1,214,917		)	(1,112,852		)	(67,252		)	(876,564		)	732,586			10,343,541		11,076,127		147,965	(194,050	)	(46,085	)
Invesco V.I. International Growth Fund	(8,757		)	72,815			643,028			707,086		825,395		(409,142		)	(175,564		)	(26,739		)	213,950			921,036			3,261,827		4,182,863		81,435	(62,438	)	18,997
Invesco V.I. Mid Cap Growth Fund	(2,853		)	16,305			17,746			31,198		151,978		(6,446		)	(5,137		)	(1,337		)	139,058			170,256			94,364		264,620		14,862	(2,722	)	12,140
Templeton Foreign VIP Fund	139,163			(12,234		)	1,391,723			1,518,652		1,401,136		(1,129,408		)	2,711,332			(44,030		)	2,939,030			4,457,682			8,350,469		12,808,151		420,038	(114,943	)	305,095
Templeton Global Bond VIP Fund	(76,251		)	392			93,187			17,328		294,995		(462,410		)	261,410			(3,737		)	90,258			107,586			4,910,556		5,018,142		56,969	(47,553	)	9,416
Templeton Growth VIP Fund	8,082			105,810			430,619			544,511		14,937		(469,929		)	(365,858		)	(3,661		)	(824,511		)	(280,000		)	3,603,581		3,323,581		4,509	(64,115	)	(59,606	)
Morgan Stanley VIF Emerging Markets Debt Portfolio	65,746			(12,266		)	77,460			130,940		3,213		(168,099		)	(23,698		)	(3,027		)	(191,611		)	(60,671		)	1,743,395		1,682,724		3,579	(15,842	)	(12,263	)
Morgan Stanley VIF Emerging Markets Equity Portfolio	(27,284		)	60,852			929,859			963,427		67,556		(756,376		)	(200,026		)	(7,667		)	(896,513		)	66,914			3,722,159		3,789,073		41,830	(117,672	)	(75,842	)
Morgan Stanley VIF U.S. Real Estate Portfolio	(10,151		)	296,362			(235,395		)	50,816		526,415		(886,045		)	(312,164		)	(20,460		)	(692,254		)	(641,438		)	5,089,693		4,448,255		67,520	(110,291	)	(42,771	)
Non-Affiliated Class 3:
BlackRock Capital Appreciation V.I. Fund	(93,610		)	830,123			897,503			1,634,016		2,411,943		(318,318		)	(427,492		)	(47,393		)	1,618,740			3,252,756			5,105,977		8,358,733		152,418	(59,074	)	93,344
BlackRock Global Allocation V.I. Fund	(1,436		)	21,260			212,806			232,630		10,140		(96,933		)	(141,270		)	(2,110		)	(230,173		)	2,457			2,027,860		2,030,317		7,972	(27,719	)	(19,747	)
BlackRock High Yield V.I. Fund	5,655			354			2,397			8,406		118,098		(4,223		)	53,078			(533		)	166,420			174,826			32,898		207,724		17,096	(1,663	)	15,433
BlackRock Total Return V.I. Fund	5,411			(421		)	4,890			9,880		310,068		(1,666		)	232,242			(5,815		)	534,829			544,709			310,806		855,515		54,789	(887	)	53,902
TOPS® Managed Risk Moderate Growth ETF Portfolio	4,248			31,921			423,374			459,543		639,126		(482,348		)	112,605			(40,020		)	229,363			688,906			3,579,679		4,268,585		60,761	(39,005	)	21,756
Non-Affiliated Class 4:
American Funds I.S. Bond Fund	6,556			11,652			(6,488		)	11,720		446,419		(6,744		)	101,554			(6,244		)	534,985			546,705			580,357		1,127,062		54,957	(1,242	)	53,715
American Funds I.S. Capital Income Builder Fund	6,326			6,141			41,841			54,308		149,184		(57,187		)	89,181			(2,698		)	178,480			232,788			407,633		640,421		31,794	(14,069	)	17,725
American Funds I.S. Global Growth Fund	(106,477		)	425,671			2,594,425			2,913,619		433,818		(1,154,221		)	819,153			(3,306		)	95,444			3,009,063			10,011,228		13,020,291		121,656	(115,519	)	6,137
American Funds I.S. Growth Fund	(37,585		)	355,443			463,477			781,335		777,115		(240,097		)	1,130,311			(2,882		)	1,664,447			2,445,782			2,396,547		4,842,329		135,238	(20,210	)	115,028
American Funds I.S. Growth-Income Fund	(30,106		)	1,190,546			2,061,764			3,222,204		1,355,876		(1,568,557		)	645,188			(14,816		)	417,691			3,639,895			15,817,794		19,457,689		214,499	(185,528	)	28,971
American Funds I.S. New World Fund	(4,697		)	74,190			111,796			181,289		335,335		(20,904		)	150,797			(2,252		)	462,976			644,265			365,012		1,009,277		82,245	(35,811	)	46,434
Non-Affiliated Class A:
DWS Small Cap Index VIP Fund	(1,943		)	114,103			(55,796		)	56,364		—		(76,177		)	(44,757		)	(200		)	(121,134		)	(64,770		)	539,784		475,014		3,642	(8,011	)	(4,369	)
Non-Affiliated Class B:
DWS Small Cap Index VIP Fund	(13,521		)	193,377			(26,685		)	153,171		184,793		(478,188		)	237,865			(2,080		)	(57,610		)	95,561			1,613,200		1,708,761		59,535	(61,081	)	(1,546	)
Advisor Class:
PIMCO VIT All Asset Portfolio	51,789			6,769			138,085			196,643		35,620		(196,532		)	(137,138		)	(1,686		)	(299,736		)	(103,093		)	1,846,770		1,743,677		5,238	(28,826	)	(23,588	)
PIMCO VIT International Bond Portfolio (US Dollar Hedged)	1,496			2			(1,022		)	476		—		—			29,268			(27		)	29,241			29,717			12,413		42,130		2,863	(26	)	2,837
PIMCO VIT CommodityRealReturn® Strategy Portfolio	238,619			(221,685		)	(8,825		)	8,109		226,258		(243,406		)	118,299			(15,097		)	86,054			94,163			2,426,197		2,520,360		114,346	(95,165	)	19,181
PIMCO VIT Long-Term U.S. Government Portfolio	2,416			(22,960		)	45,770			25,226		273		(21,844		)	(93,122		)	(450		)	(115,143		)	(89,917		)	443,273		353,356		7,848	(19,406	)	(11,558	)
PIMCO VIT Low Duration Portfolio	(13,903		)	32,311			16,035			34,443		557,238		(1,157,957		)	(404,833		)	(16,475		)	(1,022,027		)	(987,584		)	5,412,907		4,425,323		1,123,911	(1,213,048	)	(89,137	)
PIMCO VIT Real Return Portfolio	12,006			(14,281		)	29,664			27,389		141,363		(86,201		)	10,912			(1,224		)	64,850			92,239			1,218,185		1,310,424		16,794	(11,367	)	5,427
PIMCO VIT Total Return Portfolio	175,790			(242,211		)	1,391,091			1,324,670		4,944,623		(4,234,899		)	1,402,652			(277,630		)	1,834,746			3,159,416			39,440,906		42,600,322		461,512	(324,962	)	136,550
Investor Class:
Guggenheim VT Global Managed Futures Strategy Fund	(672		)	(30,368		)	71,854			40,814		3,247		(59,971		)	(10,012		)	(4,164		)	(70,900		)	(30,086		)	617,127		587,041		3,600	(14,898	)	(11,298	)
Guggenheim VT Multi-Hedge Strategies Fund	(5,976		)	8,469			5,978			8,471		1,677		(113,257		)	16,784			(1,561		)	(96,357		)	(87,886		)	467,049		379,163		1,940	(12,849	)	(10,909	)
Guggenheim VT Long Short Equity Fund	(2,901		)	6,759			34,017			37,875		960		(40,983		)	8,677			(447		)	(31,793		)	6,082			305,796		311,878		1,075	(4,142	)	(3,067	)
ETF Shares:
iShares® Core S&P 500 ETF	(485,094		)	3,929,711			9,659,914			13,104,531		7,993,735		(4,861,605		)	(3,884,408		)	—			(752,278		)	12,352,253			70,449,421		82,801,674		127,819	(143,310	)	(15,491	)
iShares® Core S&P Mid-Cap ETF	(272,581		)	1,068,783			2,030,814			2,827,016		2,359,945		(1,357,010		)	(556,096		)	—			446,839			3,273,855			20,710,978		23,984,833		52,994	(43,230	)	9,764
iShares® Core S&P Small-Cap ETF	(140,447		)	682,850			646,691			1,189,094		1,241,084		(724,812		)	(327,195		)	—			189,077			1,378,171			11,058,558		12,436,729		31,489	(27,178	)	4,311
iShares® Core U.S. Aggregate Bond ETF	(4,084		)	28,404			(10,310		)	14,010		69,948		(191,067		)	29,664			—			(91,455		)	(77,445		)	1,516,959		1,439,514		7,584	(11,286	)	(3,702	)
iShares® iBoxx $ High Yield Corporate Bond ETF	20,686			9,795			(5,272		)	25,209		134,678		(59,424		)	17,154			—			92,408			117,617			639,493		757,110		4,906	(1,968	)	2,938
iShares® Intermediate-Term Corporate Bond ETF	(2,811		)	18,306			(5,904		)	9,591		74,003		(116,023		)	208,436			—			166,416			176,007			1,172,539		1,348,546		11,115	(4,536	)	6,579
iShares® International Treasury Bond ETF	(237,241		)	(8,995		)	1,080,299			834,063		1,089,733		(628,412		)	773,416			—			1,234,737			2,068,800			8,919,142		10,987,942		84,939	(28,729	)	56,210
iShares® S&P 500 Growth ETF	(87,792		)	604,629			1,202,146			1,718,983		765,155		(484,018		)	(613,455		)	—			(332,318		)	1,386,665			7,232,956		8,619,621		16,673	(23,229	)	(6,556	)
iShares® S&P 500 Value ETF	(6,022		)	167,542			277,124			438,644		453,107		(248,450		)	31,011			—			235,668			674,312			3,299,280		3,973,592		13,821	(8,576	)	5,245
iShares® TIPS Bond ETF	(577		)	(59		)	1,800			1,164		7,319		(19,203		)	12,244			—			360			1,524			217,915		219,439		916	(904	)	12
Vanguard® Developed Markets Index Fund, ETF Shares	47,499			425,491			1,801,494			2,274,484		1,123,384		(699,023		)	(797,975		)	—			(373,614		)	1,900,870			9,938,367		11,839,237		26,187	(38,286	)	(12,099	)
Vanguard® Dividend Appreciation Index Fund, ETF Shares	(11,409		)	163,860			269,363			421,814		87,682		(246,792		)	(91,278		)	—			(250,388		)	171,426			2,269,522		2,440,948		2,783	(8,494	)	(5,711	)
Vanguard® Emerging Markets Stock Index Fund, ETF Shares	(38		)	17,749			134,818			152,529		74,314		(70,664		)	(48,127		)	—			(44,477		)	108,052			547,054		655,106		4,996	(6,766	)	(1,770	)

Separate Account I

Integrity Life Insurance Company

Statement of Changes in Net Assets (continued)

For the Year Ended December 31, 2017



	Inccrease (deccrease) in net assets from operations											Increase (decrease) in net assets from contract related transactions																				Unit Transactions
Subaccount	Net investment income (loss)			Realized gain (loss)		Change in net unrealized appreciation (depreciation) during the period			Net increase (decrease) in net assets resulting from operations			Contributions from contract holders		Contract terminations and benefits			Net transfers among investment options			Contract maintenance charges		Net increase (decrease) in net assets from contract related transactions			Increase (decrease) in net assets			Net assets, beginning of period		Net assets, end of period		Units purchased	Units redeemed		Increase (decrease) in units
ETF Shares (continued)
Vanguard® Intermediate-Term Corporate Bond Index Fund, ETF Shares	$	1,919		$	8,065	$	(3,986	)	$	5,998		$	50,962	$	(42,350	)	$	18,451		$	—	$	27,063		$	33,061		$	203,093	$	236,154	2,506	(1,536	)	970
Vanguard® Large-Cap Index Fund, ETF Shares	(9,033		)	107,473		184,078			282,518			191,811		(117,839		)	(61,553		)	—		12,419			294,937			1,449,715		1,744,652		4,658	(4,387	)	271
Vanguard® Mega Cap Index Fund, ETF Shares	(736		)	23,821		7,083			30,168			—		(20,431		)	(9,015		)	—		(29,446		)	722			155,243		155,965		715	(1,286	)	(571	)
Vanguard® Real Estate Index Fund, ETF Shares	13,356			33,301		(29,870		)	16,787			79,258		(60,030		)	15,772			—		35,000			51,787			681,655		733,442		2,950	(2,127	)	823
Vanguard® Short-Term Bond Index Fund, ETF Shares	(4,191		)	4,025		(6,164		)	(6,330		)	10,352		(88,042		)	29,642			—		(48,048		)	(54,378		)	420,845		366,467		3,486	(5,565	)	(2,079	)
Vanguard® Total Bond Market Index Fund, ETF Shares	(25,776		)	313,301		392,351			679,876			7,889,257		(4,703,913		)	8,509,180			—		11,694,524			12,374,400			67,945,953		80,320,353		581,076	(107,085	)	473,991

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements

December 31, 2018

1. Organization and Nature of Operations

Integrity Life Insurance Company Separate Account I (the “Separate Account”) is a unit investment trust registered under the Investment Company Act of 1940 (the “1940 Act”), established by the Integrity Life Insurance Company (the “Company”), a life insurance company, that is a wholly-owned subsidiary of The Western and Southern Life Insurance Company. The Separate Account was established on May 19, 1986, for the purpose of issuing variable annuity contracts (“Contracts”).

Contract holders may allocate or transfer their account values to one or more of the Separate Account’s investment subaccounts, or for certain contract holders, to one or more fixed guaranteed rate options of the Company’s Separate Account Guaranteed Principal Option (“GPO”). Options in the Separate Account GPO include fixed guaranteed rate options over various maturity periods that are subject to a market value adjustment (“MVA”) and a Systematic Transfer Option (“STO”), which accumulates interest at a fixed rate without an MVA. All STO contributions must be transferred to other investment divisions or to a guaranteed rate option within either six months or one year of the contribution. In addition, certain contract holders may also allocate or transfer their account values to options held in the Company’s general account. Such options include a guaranteed interest division or quarterly rate option.

Each subaccount invests all its investible assets in shares of corresponding investment portfolios (“Underlying Funds”) of the investment companies listed below:



American Funds Insurance Series		Columbia Funds Variable Portfolios
Non-Affiliated Class 2		Non-Affiliated Class 1
American Funds I.S. Managed Risk Asset Allocation Fund		Columbia VP – Mid Cap Value Fund
Non-Affiliated Class 4		Non-Affiliated Class 2
American Funds I.S. Bond Fund		Columbia VP – Small Cap Value Fund
American Funds I.S. Capital Income Builder Fund
American Funds I.S. Global Growth Fund		DWS Investments VIT Funds
American Funds I.S. Growth Fund		Non-Affiliated Class A:
American Funds I.S. Growth-Income Fund		DWS Small Cap Index VIP Fund
American Funds I.S. New World Fund		Non-Affiliated Class B:
		DWS Small Cap Index VIP Fund
BlackRock Variable Series Funds
Non-Affiliated Class 3
BlackRock Capital Appreciation V.I. Fund
BlackRock Global Allocation V.I. Fund
BlackRock High Yield V.I. Fund
BlackRock Total Return V.I. Fund

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

1. Organization and Nature of Operations (continued)



Fidelity Variable Insurance Products		Franklin Templeton VIP Trust
Non-Affiliated Initial Class:		Non-Affiliated Class 1:
Fidelity VIP Balanced Portfolio		Franklin Growth and Income VIP Fund
Fidelity VIP Overseas Portfolio		Franklin Income VIP Fund
Fidelity VIP Equity-Income Portfolio		Non-Affiliated Class 2:
Fidelity VIP Growth Portfolio		Franklin Growth and Income VIP Fund
Fidelity VIP High Income Portfolio		Franklin Income VIP Fund
Fidelity VIP Asset Manager Portfolio		Franklin Large Cap Growth VIP Fund
Fidelity VIP Contrafund® Portfolio		Franklin Mutual Shares VIP Fund
Fidelity VIP Index 500 Portfolio		Franklin Small Cap Value VIP Fund
Fidelity VIP Investment Grade Bond Portfolio		Templeton Foreign VIP Fund
Fidelity VIP Government Money Market		Templeton Global Bond VIP Fund
Non-Affiliated Service Class:		Templeton Growth VIP Fund
Fidelity VIP Equity-Income Portfolio
Fidelity VIP Growth Portfolio		Rydex Variable Trust (Guggenheim Variable Insurance Funds)
Fidelity VIP High Income Portfolio		Investor Class:
Fidelity VIP Asset Manager Portfolio		Guggenheim VT Global Managed Futures Strategy Fund
Fidelity VIP Contrafund® Portfolio		Guggenheim VT Multi-Hedge Strategies Fund
Fidelity VIP Balanced Portfolio		Guggenheim VT Long Short Equity Fund
Fidelity VIP Mid Cap Portfolio
Fidelity VIP Overseas Portfolio		iShares Trust
Non-Affiliated Service Class 2:		ETF Shares:
Fidelity VIP Asset Manager Portfolio		iShares® Core S&P 500 ETF
Fidelity VIP Balanced Portfolio		iShares® Core S&P Mid-Cap ETF
Fidelity VIP Contrafund® Portfolio		iShares® Core S&P Small-Cap ETF
Fidelity VIP Disciplined Small Cap Portfolio		iShares® Core U.S. Aggregate Bond ETF
Fidelity VIP Equity-Income Portfolio		iShares® iBoxx $ High Yield Corporate Bond ETF
Fidelity VIP Freedom 2010 Portfolio		iShares® Intermediate-Term Corporate Bond ETF
Fidelity VIP Freedom 2015 Portfolio		iShares® International Treasury Bond ETF
Fidelity VIP Freedom 2020 Portfolio		iShares® S&P 500 Growth ETF
Fidelity VIP Freedom 2025 Portfolio		iShares® S&P 500 Value ETF
Fidelity VIP Freedom 2030 Portfolio		iShares® TIPS Bond ETF
Fidelity VIP Growth Portfolio
Fidelity VIP High Income Portfolio		Invesco (AIM) Variable Insurance Funds
Fidelity VIP Index 500 Portfolio		Non-Affiliated Class 2:
Fidelity VIP Investment Grade Bond Portfolio		Invesco V.I. American Franchise Fund
Fidelity VIP Mid Cap Portfolio		Invesco V.I. American Value Fund
Fidelity VIP Overseas Portfolio		Invesco V.I. Comstock Fund
Fidelity VIP Target Volatility Portfolio		Invesco V.I. International Growth Fund
		Invesco V.I. Mid Cap Growth Fund

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

1. Organization and Nature of Operations (continued)



JPMorgan Insurance Trust		Touchstone Variable Series Trust
Non-Affiliated Class 1:		Affiliated:
JP Morgan IT Mid Cap Value		Touchstone VST Active Bond Fund
		Touchstone VST Aggressive ETF Fund
Morgan Stanley Variable Insurance Funds, Inc.		Touchstone VST Conservative ETF Fund
Non-Affiliated Class 1:		Touchstone VST Focused Fund
Morgan Stanley VIF Emerging Markets Debt Portfolio		Touchstone VST Large Cap Core Equity Fund
Morgan Stanley VIF U.S. Real Estate Portfolio		Touchstone VST Moderate ETF Fund
Non-Affiliated Class 2:
Morgan Stanley VIF Emerging Markets Debt Portfolio		The Vanguard Index Funds
Morgan Stanley VIF Emerging Markets Equity Portfolio		ETF Shares:
Morgan Stanley VIF U.S. Real Estate Portfolio		Vanguard® Developed Markets Index Fund, ETF Shares
		Vanguard® Dividend Appreciation Index Fund, ETF Shares
Pimco Variable Insurance Trust		Vanguard® Emerging Markets Stock Index Fund, ETF Shares
Advisor Class:		Vanguard® Intermediate-Term Corporate Bond Index Fund, ETF Shares
PIMCO VIT All Asset Portfolio		Vanguard® Large-Cap Index Fund, ETF Shares
PIMCO VIT International Bond Portfolio (US Dollar Hedged)		Vanguard® Mega Cap Index Fund, ETF Shares
PIMCO VIT CommodityRealReturn® Strategy Portfolio		Vanguard® Real Estate Index Fund, ETF Shares
PIMCO VIT Long-Term U.S. Government Portfolio		Vanguard® Short-Term Bond Index Fund, ETF Shares
PIMCO VIT Low Duration Portfolio		Vanguard® Total Bond Market Index Fund, ETF Shares
PIMCO VIT Real Return Portfolio
PIMCO VIT Total Return Portfolio

Northern Lights Variable Trust
Non-Affiliated Class 3:
TOPS® Managed Risk Moderate Growth ETF Portfolio

The statements of operations for all of the Underlying Funds are presented in the financial statements for the year ended December 31, 2018. The statements of changes in net assets for all of the Underlying Funds are presented in the financial statements for the year ended December 31, 2018 and December 31, 2017.

Mid Atlantic Trust Company (“MATC”), a South Dakota registered non-depository trust company, is the custodian for the Vanguard ETFs and the iShares ETFs held by the subaccounts.

The contract holder’s account value in a subaccount will vary depending on the performance of the corresponding Underlying Fund. The Separate Account currently has 107 subaccounts available. The investment objective of each subaccount is to invest in the corresponding Underlying Fund. Refer to each Underlying Fund’s prospectus for a description of investment objectives.

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

1. Organization and Nature of Operations (continued)

Under applicable insurance law, the assets and liabilities of the Separate Account are clearly identified and distinguished from the Company’s other assets and liabilities. The portion of the Separate Account’s assets applicable to contract holders’ accounts is not chargeable with liabilities arising out of any other business the Company may conduct.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”).

Investments

Investments in shares of the Underlying Funds are valued at fair value as determined by the closing net asset value per share on December 31, 2018. The difference between cost and fair value is reflected as unrealized appreciation or depreciation of investments.

Share transactions are recorded on the trade date. Realized gains and losses on sales of the Underlying Funds’ shares are determined based on the identified cost basis.

Capital gain distributions are included in the realized gain distributions line on the Statements of Operations. Dividends are included in the reinvested dividends line on the Statements of Operations. Dividends and capital gain distributions are recorded on the ex-dividend date. Dividends and capital gain distributions from the Underlying Funds’ are reinvested in the respective Underlying Funds and are reflected in the unit values of the subaccounts.

The Separate Account’s investments are held at fair value. Fair value is the price that the Separate Account would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. Fair Value is established using a three-level hierarchy 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. Observable inputs reflect

the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assessment regarding the assumptions market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The Separate Account’s investments

are assigned a level based upon the observability of the inputs that are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.


•	Level 1 - inputs to the valuation methodology are quoted prices in active markets.


•	Level 2 - inputs to the valuation methodology are observable, directly or indirectly.

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

2. Summary of Significant Accounting Policies (continued)


•	Level 3 - inputs to the valuation methodology are unobservable and reflect assumptions on the part of the reporting entity.

The Separate Account’s investments are valued as Level 1. There were no transfers between levels 1, 2, and 3 during the year. The Separate Account’s policy is to recognize the transfers in and transfers out of levels at the beginning of the annual reporting period.

Unit Value

Unit values for the subaccounts are computed at the end of each business day. The unit value is equal to the unit value for the preceding business day multiplied by a net investment factor. This net investment factor is determined based on the net asset value of the Underlying Fund, reinvested dividends and capital gains, and the daily asset charge for the mortality and expense risk and certain administrative charges, as applicable.

Taxes

Operations of the Separate Account are included in the income tax return of the Company, which is taxed as a life insurance company under the Internal Revenue Code (“IRC”). The Separate Account is not taxed as a regulated investment company under Subchapter M of the IRC. Under the provisions of the policies, the Company has the right to charge the Separate Account for federal income tax attributable to the Separate Account. No charge is currently being made against the Separate Account for such tax since, under current tax law, the Company pays no tax on investment income and capital gains reflected in variable annuity policy reserves. However, the Company retains the right to charge for any federal income tax incurred, which is attributable to the Separate Account if the law is changed. Charges for state and local taxes, if any, attributable to the Separate Account may also be made.

Use of Estimates

The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Subsequent Events

Management has evaluated subsequent events through the issuance of these financial statements and determined that no additional disclosures are required.

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

3. Investments

The aggregate cost of Underlying Fund shares purchased and proceeds from Underlying Fund shares sold during the period ended December 31, 2018 and the cost of investments held at December 31, 2018, for each subaccount, were as follows:



Subaccount	Purchases		Sales		Cost
Affiliated:
Touchstone VST Active Bond Fund	$	2,189,860	$	1,939,894	$	13,069,657
Touchstone VST Aggressive ETF Fund	1,435,271		2,022,440		10,541,536
Touchstone VST Conservative ETF Fund	6,872,508		4,667,900		12,134,402
Touchstone VST Focused Fund	1,452,844		4,216,667		26,190,094
Touchstone VST Large Cap Core Equity Fund	2,411,292		6,471,375		11,806,696
Touchstone VST Moderate ETF Fund	1,093,755		2,543,728		11,358,088
Non-Affiliated Initial Class:
Fidelity VIP Balanced Portfolio	156,399		301,951		2,009,864
Fidelity VIP Overseas Portfolio	29,703		252,066		1,606,260
Fidelity VIP Equity-Income Portfolio	726,304		1,297,621		8,530,045
Fidelity VIP Growth Portfolio	1,016,423		736,941		4,449,604
Fidelity VIP High Income Portfolio	154,085		638,779		639,838
Fidelity VIP Asset Manager Portfolio	180,995		434,164		3,238,746
Fidelity VIP Contrafund® Portfolio	1,516,531		2,387,498		12,922,529
Fidelity VIP Index 500 Portfolio	142,931		652,881		4,659,670
Fidelity VIP Investment Grade Bond Portfolio	90,467		648,406		2,828,235
Fidelity VIP Government Money Market	10,499,850		9,780,737		8,708,984
Non-Affiliated Service Class:
Fidelity VIP Equity-Income Portfolio	21,723		176,817		182,714
Fidelity VIP Growth Portfolio	101,479		151,069		396,378
Fidelity VIP High Income Portfolio	9,005		152,852		149,286
Fidelity VIP Asset Manager Portfolio	175		261		3,490
Fidelity VIP Contrafund® Portfolio	180,771		498,657		775,028
Fidelity VIP Balanced Portfolio	9,196		3,779		121,294
Fidelity VIP Mid Cap Portfolio	333,897		622,984		2,937,408
Fidelity VIP Overseas Portfolio	517		1,085		26,270
Non-Affiliated Service Class 2:
Fidelity VIP Asset Manager Portfolio	367,091		367,370		1,693,802
Fidelity VIP Balanced Portfolio	1,121,742		1,104,183		5,993,915
Fidelity VIP Contrafund® Portfolio	5,144,642		6,854,560		32,520,830
Fidelity VIP Disciplined Small Cap Portfolio	632,406		555,982		2,075,917
Fidelity VIP Equity-Income Portfolio	674,252		1,199,884		4,243,692
Fidelity VIP Freedom 2010 Portfolio	624,721		545,218		639,402
Fidelity VIP Freedom 2015 Portfolio	151,106		246,621		1,311,653
Fidelity VIP Freedom 2020 Portfolio	591,771		1,168,840		4,036,540
Fidelity VIP Freedom 2025 Portfolio	678,425		541,027		4,210,781
Fidelity VIP Freedom 2030 Portfolio	258,103		18,195		726,284
Fidelity VIP Growth Portfolio	4,619,430		2,053,297		10,520,181
Fidelity VIP High Income Portfolio	2,853,069		9,233,913		6,736,379
Fidelity VIP Index 500 Portfolio	7,589,149		6,535,261		34,942,955
Fidelity VIP Investment Grade Bond Portfolio	5,293,202		5,040,720		33,392,890

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

3. Investments (continued)



Subaccount	Purchases		Sales		Cost
Non-Affiliated Service Class 2 (continued):
Fidelity VIP Mid Cap Portfolio	$	1,792,118	$	2,251,712	$	8,220,598
Fidelity VIP Overseas Portfolio	321,616		681,313		2,850,094
Fidelity VIP Target Volatility Portfolio	224,341		291,033		3,087,351
Non-Affiliated Class 1:
Columbia VP – Mid Cap Value Fund	142,292		237,556		1,316,105
Franklin Growth and Income VIP Fund	103,798		155,548		1,565,423
Franklin Income VIP Fund	266,204		1,108,977		4,055,918
JP Morgan IT Mid Cap Value	19,438		200,614		377,134
Morgan Stanley VIF Emerging Markets Debt Portfolio	25,829		129,015		371,269
Morgan Stanley VIF U.S. Real Estate Portfolio	45,405		376,037		1,086,953
Non-Affiliated Class 2:
American Funds I.S. Managed Risk Asset Allocation Fund	718,331		452,005		4,842,455
Columbia VP – Small Cap Value Fund	1,733,223		2,036,100		3,748,456
Franklin Growth and Income VIP Fund	680,356		1,564,212		6,599,606
Franklin Income VIP Fund	1,929,755		4,599,923		19,417,616
Franklin Large Cap Growth VIP Fund	1,389,405		1,650,326		4,651,551
Franklin Mutual Shares VIP Fund	3,163,524		3,534,381		21,056,749
Franklin Small Cap Value VIP Fund	532,363		343,462		1,694,406
Invesco V.I. American Franchise Fund	1,392,509		995,279		3,250,808
Invesco V.I. American Value Fund	4,840,498		2,592,599		8,458,407
Invesco V.I. Comstock Fund	2,886,210		2,496,026		10,347,759
Invesco V.I. International Growth Fund	941,165		754,958		3,896,510
Invesco V.I. Mid Cap Growth Fund	369,264		81,892		536,960
Templeton Foreign VIP Fund	1,602,743		3,390,414		10,168,568
Templeton Global Bond VIP Fund	86,993		460,909		4,785,822
Templeton Growth VIP Fund	471,879		438,649		2,765,665
Morgan Stanley VIF Emerging Markets Debt Portfolio	144,880		749,758		982,962
Morgan Stanley VIF Emerging Markets Equity Portfolio	1,228,342		1,803,990		2,905,869
Morgan Stanley VIF U.S. Real Estate Portfolio	539,402		945,976		3,799,394
Non-Affiliated Class 3:
BlackRock Capital Appreciation V.I. Fund	6,177,302		2,424,382		11,830,666
BlackRock Global Allocation V.I. Fund	272,992		595,607		1,632,445
BlackRock High Yield V.I. Fund	448,037		59,675		592,747
BlackRock Total Return V.I. Fund	823,784		155,315		1,518,565
TOPS® Managed Risk Moderate Growth ETF Portfolio	379,344		342,142		3,897,201
Non-Affiliated Class 4:
American Funds I.S. Bond Fund	729,941		167,694		1,703,277
American Funds I.S. Capital Income Builder Fund	226,709		84,526		751,878
American Funds I.S. Global Growth Fund	1,397,809		1,485,076		11,476,785
American Funds I.S. Growth Fund	1,912,619		536,794		5,809,994
American Funds I.S. Growth-Income Fund	4,781,960		4,447,891		18,525,247
American Funds I.S. New World Fund	686,283		260,177		1,355,986
Non-Affiliated Class A:
DWS Small Cap Index VIP Fund	249,389		143,964		530,162
Non-Affiliated Class B:
DWS Small Cap Index VIP Fund	1,402,811		1,008,350		2,047,815

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

3. Investments (continued)



Subaccount	Purchases		Sales		Cost
Advisor Class:
PIMCO VIT All Asset Portfolio	$	65,330	$	856,683	$	859,279
PIMCO VIT International Bond Portfolio (US Dollar Hedged)	196,148		109,092		130,187
PIMCO VIT CommodityRealReturn® Strategy Portfolio	245,177		799,594		2,074,508
PIMCO VIT Long-Term U.S. Government Portfolio	39,092		113,472		278,054
PIMCO VIT Low Duration Portfolio	2,396,651		1,436,885		5,374,138
PIMCO VIT Real Return Portfolio	543,597		527,617		1,366,583
PIMCO VIT Total Return Portfolio	6,354,526		7,258,970		41,782,476
Investor Class:
Guggenheim VT Global Managed Futures Strategy Fund	187,805		104,047		725,843
Guggenheim VT Multi-Hedge Strategies Fund	141,216		88,274		409,581
Guggenheim VT Long Short Equity Fund	37,490		75,045		233,452
ETF Shares:
iShares® Core S&P 500 ETF	17,268,174		20,521,672		66,435,022
iShares® Core S&P Mid-Cap ETF	5,685,797		5,408,241		20,239,226
iShares® Core S&P Small-Cap ETF	3,191,942		3,513,219		10,270,445
iShares® Core U.S. Aggregate Bond ETF	287,548		402,887		1,429,005
iShares® iBoxx $ High Yield Corporate Bond ETF	181,611		131,736		855,448
iShares® Intermediate-Term Corporate Bond ETF	442,539		540,882		1,325,823
iShares® International Treasury Bond ETF	2,916,445		2,690,697		10,999,830
iShares® S&P 500 Growth ETF	1,909,052		2,445,420		6,803,187
iShares® S&P 500 Value ETF	941,984		988,187		3,521,220
iShares® TIPS Bond ETF	52,148		67,498		211,387
Vanguard® Developed Markets Index Fund, ETF Shares	3,437,164		2,417,282		11,985,941
Vanguard® Dividend Appreciation Index Fund, ETF Shares	502,988		909,968		1,827,246
Vanguard® Emerging Markets Stock Index Fund, ETF Shares	157,899		264,288		509,414
Vanguard® Intermediate-Term Corporate Bond Index Fund, ETF Shares	26,631		38,138		233,155
Vanguard® Large-Cap Index Fund, ETF Shares	357,786		493,817		1,387,162
Vanguard® Mega Cap Index Fund, ETF Shares	58,152		96,482		108,458
Vanguard® Real Estate Index Fund, ETF Shares	260,379		197,189		838,985
Vanguard® Short-Term Bond Index Fund, ETF Shares	50,320		67,387		372,348
Vanguard® Total Bond Market Index Fund, ETF Shares	21,963,738		19,614,748		85,521,225

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

4. Expenses and Related Party Transactions

The Company assumes mortality and expense risks and incurs certain administrative expenses related to the operations of the Separate Account. All charges listed below under “Mortality and Expenses %” are the annual rates deducted as a daily charge, thus affecting the unit values. All other charges, including the annual administration fee, some optional benefit fees (those not listed under “Mortality and Expense %”), withdrawal charges and transfer charges, if any, are taken from the contract’s account value by redeeming units. Fourteen contracts are currently included in the Separate Account. The products are stated in the table below, along with the mortality and expense charges and the annual administration fee:



	Contracts	Mortality and Expense %	Annual Administration Fee
1	GrandMaster	1.35	$30
2	GrandMaster flex3	1.55	$50
3	IQ	1.35	$30
4	IQ3	1.45	$30
5	IQ Advisor - Standard	0.60	N/A
	IQ Advisor - Enhanced	0.80	N/A
6	AnnuiChoice	1.00	$30
	AnnuiChoice - GMAB Rider	1.60	$30
7	AnnuiChoice II	1.15	$30
	AnnuiChoice II - GMAB Rider	1.75	$30
8	Pinnacle Plus	1.67	$40
	Pinnacle Plus- Reduced M&E	1.15	$40
9	Pinnacle	1.35	$30
	Pinnacle-Reduced M&E	1.10	$30
10	Pinnacle IV	1.45	$30
	Pinnacle IV - GMAB	2.05	$30
11	Pinnacle V	1.55	$30
	Pinnacle V - GMAB	2.15	$30
12	AdvantEdge	1.60	$50
13	Varoom	1.75	N/A
	Varoom - Standard option	2.35	N/A
	Varoom - Self Styled Option	2.55	N/A
14	Varoom II	1.90	N/A
	Varoom II - Standard Option	2.55	N/A
	Varoom II - Self Styled Option	2.75	N/A

For optional benefits that are not included in the daily mortality and expense charge, the Company deducts an amount either quarterly or annually, depending on the benefit, to cover the cost of the additional benefits elected.

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

4. Expenses and Related Party Transactions (continued)

For charges that are dependent on contract owner actions, e.g., withdrawal charges and transfer fees, the Company deducts an amount at the time of the transaction to cover the cost. In both situations (ongoing benefit charges and transaction charges), the fees are deducted from the account value by redeeming units.

Touchstone Advisors Inc., which is affiliated with the Company, advises each of the Touchstone Variable Series Trust offered through the Company’s variable products.

5. Financial Highlights

A summary of net assets, unit values and units outstanding for variable annuity contracts, investment income and expense ratios, excluding expenses of the underlying funds and total returns are presented for each period ended December 31. The ranges of lowest to highest unit values and total return are based on the product groupings that represent lowest and highest expense ratio amounts. The first unit value presented in the range of each subaccount within the table corresponds to the highest expense ratio for each subaccount presented within the table. The first total return presented in the range of each subaccount within the table corresponds to the highest expense ratio for each subaccount presented within the table. Therefore, some individual contract ratios are not within the ranges presented.

** Investment income ratio amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the Underlying Fund net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense risk and administrative 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.

*** Expense ratio amounts represent the annualized contract expenses of the subaccount, consisting primarily of mortality and expense risk and administrative charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying fund are excluded.

**** Total return amounts represent the total return for the periods indicated, including changes in the fair value of the Underlying Fund, which includes expenses assessed through the reduction of unit values. The ratio does not include any expenses assessed through the redemption of units. Subaccounts with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for the period indicated or from the effective date through the end of the reporting period.



For Year Ended 2018
								Investment
	Units	Unit Value				Net Assets		Income		Expense				Total
Subaccount	(000s)	Range				(000s)		Ratio (**)		Ratio (***)				Return (****)
Affiliated:
Touchstone VST Active Bond Fund	956	$	13.20	to	$16.66	$	12,626	2.12	%	1.00	%	to	1.67%	(3.27	)%	to	(2.60)%
Touchstone VST Aggressive ETF Fund	613	15.09		to	21.04	11,522		1.70	%	0.60	%	to	1.60%	(9.32	)%	to	(8.40)%
Touchstone VST Conservative ETF Fund	730	14.07		to	17.60	10,989		1.69	%	0.60	%	to	2.15%	(6.10	)%	to	(4.60)%
Touchstone VST Focused Fund	974	30.76		to	30.50	23,674		0.46	%	0.60	%	to	1.67%	(9.52	)%	to	(8.53)%
Touchstone VST Large Cap Core Equity Fund	739	21.94		to	20.42	13,220		0.52	%	1.00	%	to	1.67%	(8.06	)%	to	(7.43)%
Touchstone VST Moderate ETF Fund	607	17.34		to	19.76	9,608		1.83	%	0.60	%	to	2.15%	(8.05	)%	to	(6.59)%
Non-Affiliated Initial Class:
Fidelity VIP Balanced Portfolio	95	16.87		to	17.17	2,129		1.43	%	1.10	%	to	1.35%	(5.52	)%	to	(5.28)%
Fidelity VIP Overseas Portfolio	64	9.38		to	10.01	1,632		1.49	%	1.00	%	to	1.55%	(16.14	)%	to	(15.66)%
Fidelity VIP Equity-Income Portfolio	144	24.02		to	83.20	8,362		2.22	%				1.35%				(9.54)%
Fidelity VIP Growth Portfolio	48	128.86		to	128.86	6,247		0.24	%				1.35%				(1.52)%
Fidelity VIP High Income Portfolio	21	27.86		to	27.86	577		4.35	%				1.35%				(4.60)%
Fidelity VIP Asset Manager Portfolio	57	52.57		to	52.57	3,001		1.64	%				1.35%				(6.63)%
Fidelity VIP Contrafund® Portfolio	218	37.83		to	38.49	12,481		0.69	%	1.10	%	to	1.35%	(7.65	)%	to	(7.41)%
Fidelity VIP Index 500 Portfolio	171	20.74		to	18.24	5,271		1.84	%	1.35	%	to	1.45%	(5.88	)%	to	(5.79)%
Fidelity VIP Investment Grade Bond Portfolio	130	13.15		to	14.04	2,744		2.33	%	1.00	%	to	1.55%	(2.08	)%	to	(1.53)%
Fidelity VIP Government Money Market	892	9.61		to	10.03	8,709		1.64	%	0.60	%	to	2.75%	(1.16	)%	to	1.04%
Non-Affiliated Service Class:
Fidelity VIP Equity-Income Portfolio	9	19.38		to	19.38	175		1.97	%				1.45%				(9.74)%
Fidelity VIP Growth Portfolio	27	20.47		to	21.04	551		0.15	%	1.10	%	to	1.45%	(1.73	)%	to	(1.38)%
Fidelity VIP High Income Portfolio	9	15.39		to	15.39	133		4.65	%				1.45%				(5.01)%
Fidelity VIP Asset Manager Portfolio	-*	16.36		to	16.36	3		1.59	%				1.45%				(6.82)%
Fidelity VIP Contrafund® Portfolio	27	27.82		to	27.82	745		0.60	%				1.45%				(7.85)%
Fidelity VIP Balanced Portfolio	7	19.56		to	19.56	132		1.45	%				1.45%				(5.66)%
Fidelity VIP Mid Cap Portfolio	47	59.25		to	56.77	2,703		0.54	%	1.35	%	to	1.45%	(15.88	)%	to	(15.80)%
Fidelity VIP Overseas Portfolio	2	14.61		to	14.61	30		1.48	%				1.45%				(16.13)%
Non-Affiliated Service Class 2:
Fidelity VIP Asset Manager Portfolio	97	13.27		to	18.57	1,505		1.36	%	0.60	%	to	1.60%	(7.13	)%	to	(6.18)%
Fidelity VIP Balanced Portfolio	315	16.41		to	21.47	5,976		1.26	%	1.00	%	to	1.60%	(5.98	)%	to	(5.40)%
Fidelity VIP Contrafund® Portfolio	1,560	28.28		to	29.30	31,342		0.44	%	0.60	%	to	1.67%	(8.21	)%	to	(7.20)%
Fidelity VIP Disciplined Small Cap Portfolio	125	17.39		to	15.24	1,824		0.58	%	1.00	%	to	1.60%	(14.69	)%	to	(14.17)%
Fidelity VIP Equity-Income Portfolio	258	14.65		to	20.83	3,945		1.94	%	0.60	%	to	1.60%	(10.01	)%	to	(9.09)%
Fidelity VIP Freedom 2010 Portfolio	48	13.54		to	13.89	644		1.06	%	1.15	%	to	1.60%	(5.80	)%	to	(5.37)%
Fidelity VIP Freedom 2015 Portfolio	96	13.70		to	14.22	1,279		1.36	%	1.15	%	to	1.60%	(6.80	)%	to	(6.38)%
Fidelity VIP Freedom 2020 Portfolio	308	13.68		to	14.68	4,091		1.27	%	1.15	%	to	1.60%	(7.59	)%	to	(7.16)%
Fidelity VIP Freedom 2025 Portfolio	315	14.32		to	15.47	4,350		1.23	%	1.15	%	to	1.60%	(8.28	)%	to	(7.85)%
Fidelity VIP Freedom 2030 Portfolio	56	13.39		to	14.23	769		1.38	%	1.15	%	to	1.55%	(9.49	)%	to	(9.12)%
Fidelity VIP Growth Portfolio	487	19.35		to	18.86	10,073		0.04	%	1.00	%	to	1.60%	(2.03	)%	to	(1.43)%
Fidelity VIP High Income Portfolio	332	18.40		to	19.89	6,042		4.74	%	0.60	%	to	1.67%	(5.24	)%	to	(4.21)%
Fidelity VIP Index 500 Portfolio	2,231	25.13		to	19.36	39,191		1.57	%	0.60	%	to	1.67%	(6.33	)%	to	(5.30)%
Fidelity VIP Investment Grade Bond Portfolio	2,436	13.40		to	15.56	32,215		2.28	%	0.60	%	to	1.67%	(2.45	)%	to	(1.39)%
Fidelity VIP Mid Cap Portfolio	309	32.63		to	31.24	7,328		0.39	%	0.60	%	to	1.67%	(16.20	)%	to	(15.29)%
Fidelity VIP Overseas Portfolio	247	18.12		to	16.87	2,773		1.27	%	0.60	%	to	1.67%	(16.48	)%	to	(15.57)%

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

5. Financial Highlights (continued)



For Year Ended 2018
								Investment
	Units	Unit Value				Net Assets		Income		Expense				Total
Subaccount	(000s)	Range				(000s)		Ratio (**)		Ratio (***)				Return (****)
Non-Affiliated Service Class 2 (continued):
Fidelity VIP Target Volatility Portfolio	257	$	11.38	to	$11.64	$	2,942	1.54	%	1.15	%	to	1.60%	(7.50	)%	to	(7.08)%
Non-Affiliated Class 1:
Columbia VP – Mid Cap Value Fund	92	14.44		to	15.21	1,362		—	%	1.00	%	to	1.67%	(14.75	)%	to	(14.16)%
Franklin Growth and Income VIP Fund	74	24.41		to	24.83	1,803		2.62	%	1.10	%	to	1.35%	(5.67	)%	to	(5.43)%
Franklin Income VIP Fund	162	24.92		to	25.36	4,041		5.05	%	1.10	%	to	1.35%	(5.39	)%	to	(5.15)%
JP Morgan IT Mid Cap Value	17	29.52		to	31.15	506		1.00	%	1.00	%	to	1.55%	(13.21	)%	to	(12.72)%
Morgan Stanley VIF Emerging Markets Debt Portfolio	13	23.73		to	26.09	336		5.69	%	1.00	%	to	1.55%	(8.39	)%	to	(7.88)%
Morgan Stanley VIF U.S. Real Estate Portfolio	40	31.55		to	34.20	1,406		2.74	%	1.00	%	to	1.55%	(9.15	)%	to	(8.64)%
Non-Affiliated Class 2:
American Funds I.S. Managed Risk Asset Allocation Fund	427	11.30		to	11.65	4,846		1.35	%	1.00	%	to	1.60%	(6.42	)%	to	(5.85)%
Columbia VP – Small Cap Value Fund	122	22.71		to	24.25	2,828		0.19	%	1.00	%	to	1.67%	(19.54	)%	to	(18.99)%
Franklin Growth and Income VIP Fund	346	21.60		to	24.84	6,447		2.39	%	1.00	%	to	1.67%	(6.18	)%	to	(5.54)%
Franklin Income VIP Fund	1,149	20.27		to	21.01	18,891		4.97	%	0.60	%	to	1.67%	(5.91	)%	to	(4.88)%
Franklin Large Cap Growth VIP Fund	241	21.59		to	26.22	4,465		—	%	1.00	%	to	1.67%	(3.12	)%	to	(2.46)%
Franklin Mutual Shares VIP Fund	1,349	19.66		to	23.74	18,412		2.38	%	1.00	%	to	1.67%	(10.59	)%	to	(9.98)%
Franklin Small Cap Value VIP Fund	90	14.82		to	16.05	1,380		0.92	%	1.00	%	to	1.67%	(14.34	)%	to	(13.75)%
Invesco V.I. American Franchise Fund	149	19.76		to	25.93	3,068		—	%	0.60	%	to	1.60%	(5.44	)%	to	(4.47)%
Invesco V.I. American Value Fund	424	15.23		to	16.24	6,598		0.21	%	1.00	%	to	1.60%	(14.27	)%	to	(13.74)%
Invesco V.I. Comstock Fund	589	16.37		to	23.16	9,023		1.41	%	0.60	%	to	1.60%	(13.78	)%	to	(12.89)%
Invesco V.I. International Growth Fund	346	10.35		to	10.84	3,627		1.87	%	1.00	%	to	1.60%	(16.57	)%	to	(16.06)%
Invesco V.I. Mid Cap Growth Fund	39	11.50		to	11.67	453		—	%	1.00	%	to	1.55%	(7.34	)%	to	(6.96)%
Templeton Foreign VIP Fund	863	16.91		to	16.55	8,991		2.67	%	0.60	%	to	1.67%	(16.86	)%	to	(15.95)%
Templeton Global Bond VIP Fund	504	9.35		to	9.68	4,738		—	%	1.00	%	to	1.60%	0.30	%	to	0.91%
Templeton Growth VIP Fund	168	16.98		to	20.34	2,577		1.98	%	1.00	%	to	1.67%	(16.28	)%	to	(15.71)%
Morgan Stanley VIF Emerging Markets Debt Portfolio	60	19.77		to	14.60	888		5.91	%	1.00	%	to	1.67%	(8.60	)%	to	(7.98)%
Morgan Stanley VIF Emerging Markets Equity Portfolio	198	26.64		to	24.34	2,637		0.35	%	0.60	%	to	1.67%	(18.90	)%	to	(18.01)%
Morgan Stanley VIF U.S. Real Estate Portfolio	291	27.60		to	11.79	3,618		2.47	%	1.00	%	to	1.67%	(9.51	)%	to	(8.89)%
Non-Affiliated Class 3:
BlackRock Capital Appreciation V.I. Fund	528	17.89		to	18.75	9,543		—	%	1.00	%	to	1.60%	0.49	%	to	1.10%
BlackRock Global Allocation V.I. Fund	132	11.04		to	11.57	1,488		0.76	%	1.00	%	to	1.60%	(9.06	)%	to	(8.51)%
BlackRock High Yield V.I. Fund	52	10.69		to	10.85	557		5.26	%	1.00	%	to	1.55%	(4.41	)%	to	(3.88)%
BlackRock Total Return V.I. Fund	152	9.78		to	9.88	1,490		2.48	%	1.15	%	to	1.55%	(2.27	)%	to	(1.88)%
TOPS® Managed Risk Moderate Growth ETF Portfolio	358	10.39		to	10.66	3,745		1.56	%	1.15	%	to	1.60%	(8.87	)%	to	(8.45)%
Non-Affiliated Class 4:
American Funds I.S. Bond Fund	169	9.75		to	9.89	1,645		2.47	%	1.00	%	to	1.55%	(2.43	)%	to	(2.03)%
American Funds I.S. Capital Income Builder Fund	74	9.63		to	9.83	712		2.72	%	1.00	%	to	1.55%	(8.69	)%	to	(8.18)%
American Funds I.S. Global Growth Fund	861	12.56		to	12.95	10,883		0.49	%	1.00	%	to	1.60%	(10.70	)%	to	(10.15)%
American Funds I.S. Growth Fund	358	15.44		to	15.92	5,548		0.27	%	1.00	%	to	1.60%	(2.10	)%	to	(1.50)%
American Funds I.S. Growth-Income Fund	1,249	14.31		to	14.75	17,974		1.21	%	1.00	%	to	1.60%	(3.63	)%	to	(3.04)%
American Funds I.S. New World Fund	122	9.82		to	10.12	1,210		0.75	%	1.00	%	to	1.60%	(15.63	)%	to	(15.11)%
Non-Affiliated Class A:
DWS Small Cap Index VIP Fund	18	25.72		to	26.83	469		1.04	%	1.35	%	to	1.45%	(12.52	)%	to	(12.43)%
Non-Affiliated Class B:
DWS Small Cap Index VIP Fund	95	24.37		to	25.99	1,706		0.61	%	1.00	%	to	1.67%	(12.91	)%	to	(12.31)%
Advisor Class:
PIMCO VIT All Asset Portfolio	66	12.52		to	13.24	839		2.66	%	1.00	%	to	1.60%	(6.97	)%	to	(6.40)%
PIMCO VIT International Bond Portfolio (US Dollar Hedged)	12	10.41		to	10.57	129		1.28	%	1.00	%	to	1.55%	0.43	%	to	0.99%

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

5. Financial Highlights (continued)



For Year Ended 2018
								Investment
	Units	Unit Value				Net Assets		Income		Expense				Total
Subaccount	(000s)	Range				(000s)		Ratio (**)		Ratio (***)				Return (****)
Advisor Class (continued):
PIMCO VIT CommodityRealReturn® Strategy Portfolio	450	$	3.56	to	$3.83	$	1,649	1.97	%	1.00	%	to	1.67%	(15.64	)%	to	(15.06)%
PIMCO VIT Long-Term U.S. Government Portfolio	25	10.17		to	10.50	260		2.30	%	1.00	%	to	1.55%	(4.00	)%	to	(3.46)%
PIMCO VIT Low Duration Portfolio	482	10.77		to	11.58	5,314		1.84	%	1.00	%	to	1.67%	(1.45	)%	to	(0.77)%
PIMCO VIT Real Return Portfolio	109	11.24		to	12.08	1,263		2.53	%	1.00	%	to	1.67%	(3.88	)%	to	(3.29)%
PIMCO VIT Total Return Portfolio	2,997	12.88		to	13.84	39,923		2.44	%	1.00	%	to	1.67%	(2.31	)%	to	(1.64)%
Investor Class:
Guggenheim VT Global Managed Futures Strategy Fund	105	5.76		to	6.07	615		—	%	1.15	%	to	1.67%	(10.55	)%	to	(10.08)%
Guggenheim VT Multi-Hedge Strategies Fund	49	8.05		to	8.66	412		—	%	1.00	%	to	1.67%	(6.67	)%	to	(6.03)%
Guggenheim VT Long Short Equity Fund	21	9.27		to	9.97	206		—	%	1.00	%	to	1.67%	(14.40	)%	to	(13.81)%
ETF Shares:
iShares® Core S&P 500 ETF	1,549	47.81		to	51.46	75,243		1.88	%	1.75	%	to	2.75%	(7.11	)%	to	(6.15)%
iShares® Core S&P Mid-Cap ETF	492	42.99		to	44.52	21,442		1.48	%	1.75	%	to	2.75%	(13.63	)%	to	(12.73)%
iShares® Core S&P Small-Cap ETF	236	46.59		to	48.32	11,126		1.34	%	1.75	%	to	2.75%	(11.02	)%	to	(10.10)%
iShares® Core U.S. Aggregate Bond ETF	53	23.84		to	26.95	1,310		2.73	%	1.75	%	to	2.75%	(2.67	)%	to	(1.66)%
iShares® iBoxx $ High Yield Corporate Bond ETF	26	28.58		to	31.33	771		5.23	%	1.75	%	to	2.75%	(4.72	)%	to	(3.74)%
iShares® Intermediate-Term Corporate Bond ETF	49	24.60		to	26.17	1,219		3.30	%	1.90	%	to	2.75%	(3.48	)%	to	(2.63)%
iShares® International Treasury Bond ETF	497	21.72		to	23.36	10,979		0.31	%	1.75	%	to	2.75%	(5.29	)%	to	(4.31)%
iShares® S&P 500 Growth ETF	154	51.20		to	56.24	8,060		1.17	%	1.75	%	to	2.75%	(2.95	)%	to	(1.95)%
iShares® S&P 500 Value ETF	80	43.15		to	44.76	3,531		2.44	%	1.75	%	to	2.75%	(11.70	)%	to	(10.78)%
iShares® TIPS Bond ETF	8	21.53		to	25.74	198		2.64	%	1.75	%	to	2.75%	(4.15	)%	to	(3.16)%
Vanguard® Developed Markets Index Fund, ETF Shares	358	30.21		to	28.72	10,858		2.90	%	1.75	%	to	2.75%	(17.11	)%	to	(16.25)%
Vanguard® Dividend Appreciation Index Fund, ETF Shares	44	43.33		to	47.95	1,973		1.88	%	1.75	%	to	2.75%	(4.79	)%	to	(3.80)%
Vanguard® Emerging Markets Stock Index Fund, ETF Shares	21	23.66		to	21.67	476		2.43	%	1.75	%	to	2.75%	(17.12	)%	to	(16.26)%
Vanguard® Intermediate-Term Corporate Bond Index Fund, ETF Shares	8	26.82		to	30.45	216		3.55	%	1.75	%	to	2.75%	(4.45	)%	to	(3.46)%
Vanguard® Large-Cap Index Fund, ETF Shares	32	47.65		to	50.79	1,543		1.88	%	1.75	%	to	2.75%	(7.09	)%	to	(6.13)%
Vanguard® Mega Cap Index Fund, ETF Shares	2	48.60		to	52.01	120		1.92	%	1.75	%	to	2.75%	(6.12	)%	to	(5.15)%
Vanguard® Real Estate Index Fund, ETF Shares	19	37.33		to	40.86	744		4.48	%	1.75	%	to	2.75%	(8.63	)%	to	(7.68)%
Vanguard® Short-Term Bond Index Fund, ETF Shares	15	22.36		to	23.70	348		2.00	%	1.90	%	to	2.75%	(1.46	)%	to	(0.60)%
Vanguard® Total Bond Market Index Fund, ETF Shares	3,345	23.75		to	26.94	81,116		2.80	%	1.75	%	to	2.75%	(2.88	)%	to	(1.87)%

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

5. Financial Highlights (continued)



For Year Ended 2017					Investment
	Units	Unit Value	Net Assets		Income		Expense Ratio		Total Return
Subaccount	(000s)	Range	(000s)		Ratio (**)		Range (***)		Range (****)
Affiliated:
Touchstone VST Active Bond Fund	943	$13.64 to $17.11	$	12,868	2.67	%	1.00% to 1.67%		1.81% to 2.51%
Touchstone VST Aggressive ETF Fund	661	22.46 to 22.97	13,658		1.78	%	0.60% to 2.15%		14.78% to 16.59%
Touchstone VST Conservative ETF Fund	609	14.98 to 18.45	9,655		2.04	%	0.60% to 2.15%		7.70% to 9.40%
Touchstone VST Focused Fund	1,092	34.00 to 33.35	29,043		0.51	%	0.60% to 1.67%		11.75% to 12.96%
Touchstone VST Large Cap Core Equity Fund	992	23.86 to 22.06	18,755		0.65	%	1.00% to 1.67%		19.30% to 20.11%
Touchstone VST Moderate ETF Fund	718	18.85 to 21.15	12,221		1.99	%	0.60% to 2.15%		11.22% to 12.98%
Non-Affiliated Initial Class:
Fidelity VIP Balanced Portfolio	107	17.86 to 18.12	2,519		1.45	%	1.10% to 1.35%		14.86% to 15.15%
Fidelity VIP Overseas Portfolio	73	11.19 to 11.87	2,174		1.39	%	1.00% to 1.55%		28.27% to 28.99%
Fidelity VIP Equity-Income Portfolio	164	26.55 to 91.97	10,332		1.69	%	1.35	%	11.38	%
Fidelity VIP Growth Portfolio	53	130.85	6,935		0.21	%	1.35	%	33.32	%
Fidelity VIP High Income Portfolio	38	29.20	1,118		5.26	%	1.35	%	5.50	%
Fidelity VIP Asset Manager Portfolio	64	56.31	3,588		1.85	%	1.35	%	12.57	%
Fidelity VIP Contrafund® Portfolio	251	40.96 to 41.57	15,539		0.99	%	1.10% to 1.35%		20.24% to 20.54%
Fidelity VIP Index 500 Portfolio	186	22.04 to 19.36	6,150		1.75	%	1.35% to 1.45%		19.95% to 20.08%
Fidelity VIP Investment Grade Bond Portfolio	162	13.43 to 14.26	3,418		2.29	%	1.00% to 1.55%		2.61% to 3.18%
Fidelity VIP Government Money Market	822	9.72 to 9.93	7,990		0.65	%	0.60% to 2.75%		(2.08%) to 0.07%
Non-Affiliated Service Class:
Fidelity VIP Equity-Income Portfolio	17	21.47	371		1.64	%	1.45	%	11.17	%
Fidelity VIP Growth Portfolio	33	20.83 to 21.33	695		0.13	%	1.10% to 1.45%		33.05% to 33.52%
Fidelity VIP High Income Portfolio	18	16.20	291		6.54	%	1.45	%	5.52	%
Fidelity VIP Asset Manager Portfolio	*-	17.56	4		0.92	%	1.45	%	12.29	%
Fidelity VIP Contrafund® Portfolio	40	30.19	1,209		0.97	%	1.45	%	20.00	%
Fidelity VIP Balanced Portfolio	7	20.74	142		1.41	%	1.45	%	14.57	%
Fidelity VIP Mid Cap Portfolio	55	70.43 to 67.42	3,773		0.60	%	1.35% to 1.45%		18.96% to 19.08%
Fidelity VIP Overseas Portfolio	2	17.42	37		1.35	%	1.45	%	28.22	%
Non-Affiliated Service Class 2:
Fidelity VIP Asset Manager Portfolio	101	14.29 to 19.79	1,684		1.62	%	0.60% to 1.60%		11.93% to 13.06%
Fidelity VIP Balanced Portfolio	330	17.45 to 22.69	6,663		1.28	%	1.00% to 1.60%		14.27% to 14.96%
Fidelity VIP Contrafund® Portfolio	1,761	30.81 to 31.57	38,466		0.79	%	0.60% to 1.67%		19.56% to 20.86%
Fidelity VIP Disciplined Small Cap Portfolio	130	20.39 to 17.75	2,226		0.51	%	1.00% to 1.60%		5.09% to 5.73%
Fidelity VIP Equity-Income Portfolio	297	22.67 to 22.91	5,142		1.47	%	0.60% to 1.67%		10.78% to 11.98%
Fidelity VIP Freedom 2010 Portfolio	45	14.37 to 14.68	635		1.20	%	1.15% to 1.60%		11.00% to 11.50%
Fidelity VIP Freedom 2015 Portfolio	106	14.70 to 15.19	1,521		1.17	%	1.15% to 1.60%		12.97% to 13.48%
Fidelity VIP Freedom 2020 Portfolio	361	14.13 to 15.81	5,177		1.26	%	1.15% to 1.67%		14.33% to 14.93%
Fidelity VIP Freedom 2025 Portfolio	312	15.61 to 16.79	4,686		1.27	%	1.15% to 1.60%		15.69% to 16.22%
Fidelity VIP Freedom 2030 Portfolio	42	14.79 to 15.65	629		1.20	%	1.15% to 1.55%		18.83% to 19.31%
Fidelity VIP Growth Portfolio	432	19.75 to 19.14	9,070		0.07	%	1.00% to 1.60%		32.67% to 33.47%
Fidelity VIP High Income Portfolio	684	19.42 to 20.76	13,128		6.21	%	0.60% to 1.67%		5.13% to 6.27%
Fidelity VIP Index 500 Portfolio	2,182	26.83 to 20.44	40,812		1.58	%	0.60% to 1.67%		19.39% to 20.68%
Fidelity VIP Investment Grade Bond Portfolio	2,463	13.74 to 15.78	33,192		2.26	%	0.60% to 1.67%		2.26% to 3.37%
Fidelity VIP Mid Cap Portfolio	355	38.94 to 36.88	9,895		0.49	%	0.60% to 1.67%		18.53% to 19.82%
Fidelity VIP Overseas Portfolio	274	21.69 to 19.98	3,674		1.17	%	0.60% to 1.67%		27.83% to 29.21%

*- Less than 500.

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

5. Financial Highlights (continued)



For Year Ended 2017					Investment
	Units	Unit Value	Net Assets		Income		Expense Ratio	Total Return
Subaccount	(000s)	Range	(000s)		Ratio (**)		Range (***)	Range (****)
Non-Affiliated Service Class 2 (continued):
Fidelity VIP Target Volatility Portfolio	270	$12.30 to $12.53	$	3,343	1.16	%	1.15% to 1.60%	14.44% to 14.96%
Non-Affiliated Class 1:
Columbia VP – Mid Cap Value Fund	97	16.94 to 17.72	1,663		—	%	1.00% to 1.67%	11.65% to 12.41%
Franklin Growth and Income VIP Fund	79	25.87 to 26.26	2,040		6.11	%	1.10% to 1.35%	14.59% to 14.87%
Franklin Income VIP Fund	201	26.34 to 26.73	5,285		4.24	%	1.10% to 1.35%	8.46% to 8.74%
JPMorgan IT Mid Cap Value	23	34.01 to 35.69	779		0.79	%	1.00% to 1.55%	12.01% to 12.63%
Morgan Stanley VIF Emerging Markets Debt Portfolio	18	25.90 to 28.32	496		5.07	%	1.00% to 1.55%	8.02% to 8.62%
Morgan Stanley VIF U.S. Real Estate Portfolio	49	34.73 to 37.43	1,914		1.45	%	1.00% to 1.55%	1.52% to 2.08%
Non-Affiliated Class 2:
American Funds I.S. Managed Risk Asset Allocation Fund	421	12.07 to 12.37	5,098		0.78	%	1.00% to 1.60%	12.97% to 13.66%
Columbia VP – Small Cap Value Fund	153	28.23 to 29.94	4,409		0.31	%	1.00% to 1.67%	12.09% to 12.85%
Franklin Growth and Income VIP Fund	409	23.03 to 26.29	8,001		5.82	%	1.00% to 1.67%	13.93% to 14.70%
Franklin Income VIP Fund	1,340	21.54 to 22.08	23,474		4.12	%	0.60% to 1.67%	7.85% to 9.02%
Franklin Large Cap Growth VIP Fund	277	22.29 to 26.88	5,125		0.57	%	1.00% to 1.67%	25.98% to 26.83%
Franklin Mutual Shares VIP Fund	1,438	21.99 to 26.37	21,855		2.27	%	1.00% to 1.67%	6.54% to 7.27%
Franklin Small Cap Value VIP Fund	93	17.30 to 18.61	1,665		0.52	%	1.00% to 1.67%	8.81% to 9.55%
Invesco V.I. American Franchise Fund	137	25.27 to 27.14	2,966		—	%	0.60% to 1.67%	24.91% to 26.27%
Invesco V.I. American Value Fund	362	17.77 to 18.83	6,524		0.63	%	1.00% to 1.60%	7.93% to 8.59%
Invesco V.I. Comstock Fund	630	18.99 to 26.58	11,076		2.02	%	0.60% to 1.60%	15.70% to 16.87%
Invesco V.I. International Growth Fund	334	12.40 to 12.92	4,183		1.25	%	1.00% to 1.60%	20.77% to 21.50%
Invesco V.I. Mid Cap Growth Fund	21	12.41 to 12.49	265		—	%	1.15% to 1.55%	20.26% to 20.74%
Templeton Foreign VIP Fund	1,051	20.34 to 19.69	12,808		2.68	%	0.60% to 1.67%	14.75% to 16.00%
Templeton Global Bond VIP Fund	536	9.32 to 9.59	5,018		—	%	1.00% to 1.60%	0.30% to 0.91%
Templeton Growth VIP Fund	180	20.28 to 24.13	3,324		1.64	%	1.00% to 1.67%	16.53% to 17.32%
Morgan Stanley VIF Emerging Markets Debt Portfolio	106	21.63 to 15.86	1,683		5.36	%	1.00% to 1.67%	7.76% to 8.49%
Morgan Stanley VIF Emerging Markets Equity Portfolio	215	32.84 to 29.69	3,789		0.62	%	0.60% to 1.67%	32.82% to 34.26%
Morgan Stanley VIF U.S. Real Estate Portfolio	326	30.50 to 12.94	4,448		1.25	%	1.00% to 1.67%	1.16% to 1.84%
Non-Affiliated Class 3:
BlackRock Capital Appreciation V.I. Fund	466	17.80 to 18.54	8,359		—	%	1.00% to 1.60%	30.83% to 31.62%
BlackRock Global Allocation V.I. Fund	164	12.14 to 12.64	2,030		1.24	%	1.00% to 1.60%	11.90% to 12.58%
BlackRock High Yield V.I. Fund	19	11.19 to 11.29	208		4.89	%	1.00% to 1.55%	5.41% to 6.00%
BlackRock Total Return V.I. Fund	85	10.00 to 10.07	856		2.24	%	1.15% to 1.55%	1.61% to 2.02%
TOPS® Managed Risk Moderate Growth ETF Portfolio	373	11.40 to 11.64	4,269		1.62	%	1.15% to 1.60%	12.02% to 12.53%
Non-Affiliated Class 4:
American Funds I.S. Bond Fund	113	9.99 to 10.06	1,127		2.30	%	1.15% to 1.55%	1.70% to 2.11%
American Funds I.S. Capital Income Builder Fund	61	10.55 to 10.71	640		2.60	%	1.00% to 1.55%	10.91% to 11.53%
American Funds I.S. Global Growth Fund	921	14.07 to 14.42	13,020		0.58	%	1.00% to 1.60%	29.03% to 29.81%
American Funds I.S. Growth Fund	306	15.77 to 16.16	4,842		0.48	%	1.00% to 1.60%	25.95% to 26.71%
American Funds I.S. Growth-Income Fund	1,304	14.85 to 15.22	19,458		1.32	%	1.00% to 1.60%	20.13% to 20.86%
American Funds I.S. New World Fund	86	11.63 to 11.92	1,009		0.89	%	1.00% to 1.60%	27.00% to 27.77%
Non-Affiliated Class A:
DWS Small Cap Index VIP Fund	16	29.40 to 30.64	475		0.97	%	1.35% to 1.45%	12.68% to 12.79%
Non-Affiliated Class B:
DWS Small Cap Index VIP Fund	85	27.99 to 29.64	1,709		0.56	%	1.00% to 1.67%	12.14% to 12.90%
Advisor Class:
PIMCO VIT All Asset Portfolio	128	13.25 to 14.15	1,744		4.41	%	1.00% to 1.67%	11.49% to 12.25%
PIMCO VIT International Bond Portfolio (US Dollar Hedged)	4	10.37 to 10.46	42		6.06	%	1.00% to 1.55%	1.08% to 1.64%
PIMCO VIT CommodityRealReturn® Strategy Portfolio	583	4.22 to 4.51	2,520		11.11	%	1.00% to 1.67%	0.35% to 1.03%
PIMCO VIT Long-Term U.S. Government Portfolio	33	10.57 to 10.88	353		2.08	%	1.00% to 1.60%	7.11% to 7.76%
PIMCO VIT Low Duration Portfolio	396	10.93 to 11.67	4,425		1.30	%	1.00% to 1.67%	(0.44%) to 0.24%
PIMCO VIT Real Return Portfolio	109	11.70 to 12.49	1,310		2.30	%	1.00% to 1.67%	1.83% to 2.52%
PIMCO VIT Total Return Portfolio	3,137	13.18 to 14.08	42,600		1.92	%	1.00% to 1.67%	3.07% to 3.77%

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

5. Financial Highlights (continued)



For Year Ended 2017					Investment
	Units	Unit Value	Net Assets		Income		Expense Ratio	Total Return
Subaccount	(000s)	Range	(000s)		Ratio (**)		Range (***)	Range (****)
Investor Class:
Guggenheim VT Global Managed Futures Strategy Fund	90	$6.44 to $6.75	$	587	1.42	%	1.15% to 1.67%	6.90% to 7.46%
Guggenheim VT Multi-Hedge Strategies Fund	42	8.63 to 9.21	379		—	%	1.00% to 1.67%	1.95% to 2.64%
Guggenheim VT Long Short Equity Fund	27	10.83 to 11.56	312		0.35	%	1.00% to 1.67%	12.94% to 13.71%
ETF Shares:
iShares® Core S&P 500 ETF	1,587	51.47 to 54.83	82,802		1.90	%	1.75% to 2.75%	18.42% to 19.63%
iShares® Core S&P Mid-Cap ETF	477	49.78 to 51.01	23,985		1.29	%	1.75% to 2.75%	13.07% to 14.23%
iShares® Core S&P Small-Cap ETF	235	52.36 to 53.75	12,437		1.30	%	1.75% to 2.75%	10.04% to 11.16%
iShares® Core U.S. Aggregate Bond ETF	57	24.50 to 27.41	1,440		2.33	%	1.75% to 2.75%	0.71% to 1.74%
iShares® iBoxx $ High Yield Corporate Bond ETF	24	29.99 to 32.54	757		5.12	%	1.75% to 2.75%	3.17% to 4.23%
iShares® Intermediate-Term Corporate Bond ETF	53	25.49 to 26.87	1,349		2.51	%	1.90% to 2.75%	0.70% to 1.58%
iShares® International Treasury Bond ETF	473	22.93 to 24.41	10,988		0.20	%	1.75% to 2.75%	8.31% to 9.42%
iShares® S&P 500 Growth ETF	161	52.75 to 57.36	8,620		1.43	%	1.75% to 2.75%	23.73% to 25.00%
iShares® S&P 500 Value ETF	80	48.86 to 50.17	3,974		2.29	%	1.75% to 2.75%	12.08% to 13.23%
iShares® TIPS Bond ETF	9	22.47 to 26.58	219		2.07	%	1.75% to 2.75%	0.10% to 1.12%
Vanguard® Developed Markets Index Fund, ETF Shares	325	36.45 to 34.30	11,839		2.97	%	1.75% to 2.75%	22.94% to 24.20%
Vanguard® Dividend Appreciation Index Fund, ETF Shares	52	45.51 to 49.85	2,441		2.03	%	1.75% to 2.75%	18.88% to 20.10%
Vanguard® Emerging Markets Stock Index Fund, ETF Shares	24	28.55 to 25.87	655		2.53	%	1.75% to 2.75%	27.88% to 29.18%
Vanguard® Intermediate-Term Corporate Bond Index Fund, ETF Shares	8	28.07 to 31.54	236		3.25	%	1.75% to 2.75%	2.42% to 3.47%
Vanguard® Large-Cap Index Fund, ETF Shares	33	51.29 to 54.11	1,745		1.91	%	1.75% to 2.75%	18.66% to 19.88%
Vanguard® Mega Cap Index Fund, ETF Shares	3	51.77 to 54.83	156		1.96	%	1.75% to 2.75%	19.25% to 20.47%
Vanguard® Real Estate Index Fund, ETF Shares	17	40.86 to 44.26	733		4.24	%	1.75% to 2.75%	2.01% to 3.05%
Vanguard® Short-Term Bond Index Fund, ETF Shares	16	22.69 to 23.84	366		1.63	%	1.90% to 2.75%	(1.57%) to (0.71%)
Vanguard® Total Bond Market Index Fund, ETF Shares	3,223	24.46 to 27.45	80,320		2.56	%	1.75% to 2.75%	0.73% to 1.76%

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

5. Financial Highlights (continued)



For Year Ended 2016					Investment
	Units	Unit Value	Net Assets		Income		Expense Ratio		Total Return
Subaccount	(000s)	Range	(000s)		Ratio (**)		Range (***)		Range (****)
Affiliated
Touchstone VST Active Bond Fund	841	$13.40 to $16.69	$	11,371	2.25	%	1.00% to 1.67%		4.21% to 4.92%
Touchstone VST Aggressive ETF Fund	710	19.57 to 19.70	12,686		1.45	%	0.60% to 2.15%		5.64% to 7.31%
Touchstone VST Conservative ETF Fund	666	13.91 to 16.86	9,709		1.18	%	0.60% to 2.15%		3.31% to 4.95%
Touchstone VST Focused Fund	1,258	30.43 to 29.52	29,800		0.00	%	0.60% to 1.67%		11.22% to 12.43%
Touchstone VST Large Cap Core Equity Fund	1,184	20.00 to 18.37	18,709		0.99	%	1.00% to 1.67%		7.02% to 7.75%
Touchstone VST Moderate ETF Fund	831	16.95 to 18.72	12,710		1.62	%	0.60% to 2.15%		4.56% to 6.21%
Non-Affiliated Initial Class:
Fidelity VIP Balanced Portfolio	125	15.55 to 15.74	2,490		1.32	%	1.10% to 1.35%		5.82% to 6.08%
Fidelity VIP Overseas Portfolio	82	8.72 to 9.20	1,909		1.42	%	1.00% to 1.55%		(6.53)% to (6.01)%
Fidelity VIP Equity-Income Portfolio	177	82.57	10,075		2.21	%	1.35	%	16.43	%
Fidelity VIP Growth Portfolio	61	98.15	5,965		0.04	%	1.35	%	(0.56	)%
Fidelity VIP High Income Portfolio	48	27.68	1,324		5.08	%	1.35	%	13.06	%
Fidelity VIP Asset Manager Portfolio	69	50.02	3,456		1.38	%	1.35	%	1.68	%
Fidelity VIP Contrafund® Portfolio	279	34.06 to 34.49	14,044		0.77	%	1.10% to 1.35%		6.55% to 6.82%
Fidelity VIP Index 500 Portfolio	214	15.97 to 16.13	5,879		1.38	%	1.35% to 1.45%		10.24% to 10.35%
Fidelity VIP Investment Grade Bond Portfolio	209	13.09 to 13.82	4,085		2.29	%	1.00% to 1.55%		3.12% to 3.69%
Fidelity VIP Government Money Market	1,386	9.74 to 9.92	13,564		0.20	%	0.60% to 1.67%		(1.47)% to (0.40)%
Non-Affiliated Service Class:
Fidelity VIP Equity-Income Portfolio	18	19.31	338		2.23	%	1.45	%	16.19	%
Fidelity VIP Growth Portfolio	40	15.65 to 15.97	627		0.00	%	1.10% to 1.45%		(0.75)% to (0.39)%
Fidelity VIP High Income Portfolio	18	15.35	282		6.34	%	1.45	%	12.72	%
Fidelity VIP Asset Manager Portfolio	1	15.63	14		1.43	%	1.45	%	1.52	%
Fidelity VIP Contrafund® Portfolio	38	25.16	948		0.71	%	1.45	%	6.35	%
Fidelity VIP Balanced Portfolio	7	18.10	125		1.28	%	1.45	%	5.61	%
Fidelity VIP Mid Cap Portfolio	64	59.21 to 56.62	3,692		0.39	%	1.35% to 1.45%		10.49% to 10.60%
Fidelity VIP Overseas Portfolio	2	13.58	29		1.38	%	1.45	%	(6.50	)%
Non-Affiliated Service Class 2:
Fidelity VIP Asset Manager Portfolio	105	16.12 to 17.50	1,560		1.30	%	0.60% to 1.67%		1.12% to 2.22%
Fidelity VIP Balanced Portfolio	350	18.78 to 19.74	6,167		1.19	%	1.00% to 1.67%		5.19% to 5.91%
Fidelity VIP Contrafund® Portfolio	1,830	25.77 to 26.13	33,799		0.61	%	0.60% to 1.67%		5.93% to 7.08%
Fidelity VIP Disciplined Small Cap Portfolio	141	19.40 to 16.79	2,283		0.63	%	1.00% to 1.60%		20.35% to 21.09%
Fidelity VIP Equity-Income Portfolio	320	20.47 to 20.46	5,105		2.16	%	0.60% to 1.67%		15.75% to 17.00%
Fidelity VIP Freedom 2010 Portfolio	64	12.57 to 13.16	826		1.24	%	1.15% to 1.67%		3.47% to 4.02%
Fidelity VIP Freedom 2015 Portfolio	128	12.55 to 13.39	1,629		1.12	%	1.15% to 1.67%		3.82% to 4.36%
Fidelity VIP Freedom 2020 Portfolio	385	12.36 to 13.00	4,813		1.17	%	1.15% to 1.67%		4.04% to 4.59%
Fidelity VIP Freedom 2025 Portfolio	308	12.84 to 13.51	3,993		1.32	%	1.15% to 1.67%		4.22% to 4.77%
Fidelity VIP Freedom 2030 Portfolio	41	12.45 to 13.12	511		1.23	%	1.15% to 1.55%		4.73% to 5.15%
Fidelity VIP Growth Portfolio	344	20.15 to 14.34	5,398		0.00	%	1.00% to 1.67%		(1.13)% to (0.45)%
Fidelity VIP High Income Portfolio	902	18.47 to 19.54	16,686		5.69	%	0.60% to 1.67%		12.26% to 13.48%
Fidelity VIP Index 500 Portfolio	2,267	22.47 to 16.94	35,505		1.39	%	0.60% to 1.67%		9.72% to 10.91%
Fidelity VIP Investment Grade Bond Portfolio	2,227	13.44 to 15.26	29,582		2.43	%	0.60% to 1.67%		2.73% to 3.85%
Fidelity VIP Mid Cap Portfolio	385	32.86 to 30.78	9,185		0.31	%	0.60% to 1.67%		10.06% to 11.25%
Fidelity VIP Overseas Portfolio	310	16.97 to 15.46	3,209		1.21	%	0.60% to 1.67%		(6.85)% to (5.84)%
Fidelity VIP Target Volatility Portfolio	256	10.75 to 10.90	2,758		1.51	%	1.15% to 1.60%		3.38% to 3.85%

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

5. Financial Highlights (continued)



For Year Ended 2016					Investment
	Units	Unit Value	Net Assets		Income		Expense Ratio		Total Return
Subaccount	(000s)	Range	(000s)		Ratio (**)		Range (***)		Range (****)
Non-Affiliated Class 1:
Columbia VP – Mid Cap Value Fund	122	$15.17 to $15.76	$	1,870	0.00	%	1.00% to 1.67%		12.24% to 13.01%
Franklin Growth and Income VIP Fund	85	22.58 to 22.86	1,923		2.85	%	1.10% to 1.35%		10.35% to 10.63%
Franklin Income VIP Fund	225	24.28 to 24.58	5,458		5.10	%	1.10% to 1.35%		12.79% to 13.08%
JPMorgan IT Mid Cap Value	24	30.36 to 31.69	727		0.89	%	1.00% to 1.55%		12.92% to 13.55%
Morgan Stanley VIF Emerging Markets Debt Portfolio	22	23.98 to 26.07	563		5.72	%	1.00% to 1.55%		8.84% to 9.45%
Morgan Stanley VIF U.S. Real Estate Portfolio	58	34.21 to 36.67	2,265		1.36	%	1.00% to 1.55%		5.16% to 5.75%
Non-Affiliated Class 2:
American Funds I.S. Managed Risk Asset Allocation Fund	371	10.68 to 10.88	3,979		1.30	%	1.00% to 1.60%		5.56% to 6.20%
Columbia VP – Small Cap Value Fund	130	25.19 to 26.53	3,325		0.40	%	1.00% to 1.67%		30.53% to 31.41%
Franklin Growth and Income VIP Fund	430	20.21 to 22.92	7,579		2.63	%	1.00% to 1.67%		9.76% to 10.51%
Franklin Income VIP Fund	1,311	19.98 to 20.26	21,781		4.93	%	0.60% to 1.67%		12.12% to 13.34%
Franklin Large Cap Growth VIP Fund	256	17.69 to 21.20	3,824		0.00	%	1.00% to 1.67%		(3.43)% to (2.77)%
Franklin Mutual Shares VIP Fund	1,388	20.64 to 24.59	19,924		2.04	%	1.00% to 1.67%		14.12% to 14.90%
Franklin Small Cap Value VIP Fund	118	15.90 to 16.98	1,946		0.80	%	1.00% to 1.67%		28.02% to 28.89%
Invesco V.I. American Franchise Fund	88	20.23 to 21.49	1,574		0.00	%	0.60% to 1.67%		0.31% to 1.41%
Invesco V.I. American Value Fund	281	16.46 to 17.34	4,670		0.12	%	1.00% to 1.60%		13.38% to 14.07%
Invesco V.I. Comstock Fund	676	16.41 to 22.75	10,344		1.32	%	0.60% to 1.60%		15.12% to 16.29%
Invesco V.I. International Growth Fund	315	10.42 to 10.54	3,262		1.25	%	0.80% to 1.67%		(2.04)% to (1.84)%
Invesco V.I. Mid Cap Growth Fund (April 29, 2016)	9	10.32 to 10.33	94		0.00	%	1.10% to 1.55%		3.20% to 3.27%
Templeton Foreign VIP Fund	745	17.73 to 16.97	8,350		1.92	%	0.60% to 1.67%		5.39% to 6.53%
Templeton Global Bond VIP Fund	526	9.29 to 9.50	4,911		0.00	%	1.00% to 1.60%		1.29% to 1.91%
Templeton Growth VIP Fund	240	17.40 to 20.57	3,604		2.04	%	1.00% to 1.67%		7.79% to 8.52%
Morgan Stanley VIF Emerging Markets Debt Portfolio	118	20.07 to 14.62	1,743		5.94	%	1.00% to 1.67%		8.74% to 9.48%
Morgan Stanley VIF Emerging Markets Equity Portfolio	291	24.73 to 22.11	3,722		0.42	%	0.60% to 1.67%		4.84% to 5.98%
Morgan Stanley VIF U.S. Real Estate Portfolio	368	30.15 to 12.70	5,090		1.06	%	1.00% to 1.67%		4.77% to 5.48%
Non-Affiliated Class 3:
BlackRock Capital Appreciation V.I. Fund	373	13.61 to 14.09	5,106		0.00	%	1.00% to 1.60%		(1.73)% to (1.13)%
BlackRock Global Allocation V.I. Fund	184	10.85 to 11.23	2,028		1.16	%	1.00% to 1.60%		2.15% to 2.77%
BlackRock High Yield V.I. Fund (April 29, 2016)	3	10.61 to 10.65	33		5.21	%	1.00% to 1.55%		6.12% to 6.52%
BlackRock Total Return V.I. Fund (April 29, 2016)	32	9.84 to 9.87	311		1.81	%	1.15% to 1.55%		(1.55)% to (1.28)%
TOPS® Managed Risk Moderate Growth ETF Portfolio	351	10.18 to 10.35	3,580		1.95	%	1.15% to 1.60%		4.45% to 4.92%
Non-Affiliated Class 4:
American Funds I.S. Bond Fund (April 29, 2016)	59	9.82	580		2.78	%	1.15	%	(1.79	)%
American Funds I.S. Capital Income Builder Fund	43	9.55 to 9.60	408		3.66	%	1.00% to 1.60%		2.38% to 2.75%
American Funds I.S. Global Growth Fund	915	10.90 to 11.11	10,011		0.70	%	1.00% to 1.60%		(1.24)% to (0.63)%
American Funds I.S. Growth Fund	191	12.52 to 12.76	2,397		0.74	%	1.00% to 1.60%		7.47% to 8.13%
American Funds I.S. Growth-Income Fund	1,275	12.36 to 12.59	15,818		1.36	%	1.00% to 1.60%		9.48% to 10.14%
American Funds I.S. New World Fund	40	9.16 to 9.33	365		0.71	%	1.00% to 1.60%		3.36% to 3.99%
Non-Affiliated Class A:
DWS Small Cap Index VIP Fund	20	26.09 to 27.17	540		1.09	%	1.35% to 1.45%		19.27% to 19.39%
Non-Affiliated Class B:
DWS Small Cap Index VIP Fund	87	24.96 to 26.25	1,613		0.74	%	1.00% to 1.67%		18.69% to 19.5%

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

5. Financial Highlights (continued)






For Year Ended 2016					Investment
	Units	Unit Value	Net Assets		Income		Expense Ratio		Total Return
Subaccount	(000s)	Range	(000s)		Ratio (**)		Range (***)		Range (****)
Advisor Class:
PIMCO VIT All Asset Portfolio	152	$11.88 to $12.60	$	1,847	2.59	%	1.00% to 1.67%		11.02% to 11.78%
PIMCO VIT International Bond Portfolio (US Dollar Hedged) (April 29, 2016)	1	10.30	12		3.47	%	1.15	%	2.96	%
PIMCO VIT CommodityRealReturn® Strategy Portfolio	564	4.21 to 4.47	2,426		1.03	%	1.00% to 1.67%		12.96% to 13.72%
PIMCO VIT Long-Term U.S. Government Portfolio	45	9.93 to 10.09	443		1.82	%	1.00% to 1.55%		(0.88)% to (0.43)%
PIMCO VIT Low Duration Portfolio	485	10.98 to 11.64	5,413		1.35	%	1.00% to 1.67%		(0.39)% to 0.29%
PIMCO VIT Real Return Portfolio	104	11.49 to 12.19	1,218		2.21	%	1.00% to 1.67%		3.34% to 4.04%
PIMCO VIT Total Return Portfolio	3,000	12.79 to 13.56	39,441		1.98	%	1.00% to 1.67%		0.86% to 1.55%
Investor Class:
Guggenheim VT Global Managed Futures Strategy Fund	101	6.02 to 6.29	617		3.82	%	1.15% to 1.67%		(16.19)% to (15.74)%
Guggenheim VT Multi-Hedge Strategies Fund	53	8.46 to 8.97	467		0.10	%	1.00% to 1.67%		(2.14)% to (1.48)%
Guggenheim VT Long Short Equity Fund	30	9.59 to 10.17	306		0.00	%	1.00% to 1.67%		(1.02)% to (0.35)%
ETF Shares:
iShares® Core S&P 500 ETF	1,602	43.46 to 45.83	70,447		2.24	%	1.75% to 2.75%		9.07% to 10.19%
iShares® Core S&P Mid-Cap ETF	467	44.02 to 44.66	20,711		1.78	%	1.75% to 2.75%		17.36% to 18.56%
iShares® Core S&P Small-Cap ETF	231	47.58 to 48.35	11,059		1.42	%	1.75% to 2.75%		23.12% to 24.38%
iShares® Core U.S. Aggregate Bond ETF	61	24.32 to 26.94	1,517		2.33	%	1.75% to 2.75%		(0.41)% to 0.62%
iShares® iBoxx $ High Yield Corporate Bond ETF	21	29.07 to 31.22	639		5.47	%	1.75% to 2.75%		10.28% to 11.42%
iShares® Intermediate-Term Corporate Bond ETF	46	25.31 to 26.45	1,173		2.42	%	1.90% to 2.75%		0.47% to 1.35%
iShares® International Treasury Bond ETF	417	21.17 to 22.31	8,919		0.70	%	1.75% to 2.75%		(1.92)% to (0.91)%
iShares® S&P 500 Growth ETF	167	42.64 to 45.89	7,233		1.59	%	1.75% to 2.75%		3.88% to 4.94%
iShares® S&P 500 Value ETF	75	43.60 to 44.31	3,299		2.47	%	1.75% to 2.75%		14.08% to 15.25%
iShares® TIPS Bond ETF	9	22.44 to 26.28	218		1.46	%	1.75% to 2.75%		1.80% to 2.84%
Vanguard® Developed Markets Index Fund, ETF Shares	337	29.65 to 27.62	9,938		3.12	%	1.75% to 2.75%		(0.17)% to 0.85%
Vanguard® Dividend Appreciation Index Fund, ETF Shares	58	38.28 to 41.50	2,270		2.22	%	1.75% to 2.75%		8.91% to 10.03%
Vanguard® Emerging Markets Stock Index Fund, ETF Shares	25	22.32 to 20.03	547		2.53	%	1.75% to 2.75%		9.11% to 10.23%
Vanguard® Intermediate-Term Corporate Bond Index Fund, ETF Shares	7	27.40 to 30.48	203		3.22	%	1.75% to 2.75%		2.36% to 3.41%
Vanguard® Large-Cap Index Fund, ETF Shares	33	43.22 to 45.14	1,450		2.10	%	1.75% to 2.75%		8.70% to 9.81%
Vanguard® Mega Cap Index Fund, ETF Shares	4	43.41 to 45.52	155		2.23	%	1.75% to 2.75%		8.83% to 9.95%
Vanguard® Real Estate Index Fund, ETF Shares	17	40.05 to 42.95	682		4.87	%	1.75% to 2.75%		5.64% to 6.72%
Vanguard® Short-Term Bond Index Fund, ETF Shares	18	23.05 to 24.01	421		1.45	%	1.90% to 2.75%		(1.45)% to (0.59)%
Vanguard® Total Bond Market Index Fund, ETF Shares	2,749	24.28 to 26.98	67,946		2.42	%	1.75% to 2.75%		(0.30)% to 0.73%

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

5. Financial Highlights (continued)



For Year Ended 2015					Investment
	Units	Unit Value	Net Assets		Income		Expense Ratio		Total Return
Subaccount	(000s)	Range	(000s)		Ratio (**)		Range (***)		Range (****)
Affiliated
Touchstone VST Active Bond Fund	718	$12.86 to $15.91	$	9,421	1.79	%	1.00% to 1.67%		(2.92)% to (2.26)%
Touchstone VST Aggressive ETF Fund	830	18.53 to 18.36	13,901		1.62	%	0.60% to 2.15%		(2.25)% to (0.70)%
Touchstone VST Conservative ETF Fund	791	13.46 to 16.07	11,097		1.41	%	0.60% to 2.15%		(2.38)% to (0.84)%
Touchstone VST Focused Fund	1,379	27.36 to 26.26	30,064		0.00	%	0.60% to 1.67%		0.27% to 1.36%
Touchstone VST Large Cap Core Equity Fund	1,065	18.69 to 17.05	16,326		1.22	%	1.00% to 1.67%		(5.61)% to (4.97)%
Touchstone VST Moderate ETF Fund	956	16.21 to 17.63	13,887		1.78	%	0.60% to 2.15%		(2.33)% to (0.78)%
Non-Affiliated Initial Class:
Fidelity VIP Balanced Portfolio	139	14.69 to 14.84	2,592		1.43	%	1.10% to 1.35%		(0.77)% to (0.51)%
Fidelity VIP Overseas Portfolio	89	9.33 to 9.79	2,165		1.29	%	1.00% to 1.55%		2.02% to 2.59%
Fidelity VIP Equity-Income Portfolio	205	70.92	9,803		2.98	%	1.35	%	(5.26	)%
Fidelity VIP Growth Portfolio	67	98.70	6,613		0.25	%	1.35	%	5.73	%
Fidelity VIP High Income Portfolio	58	24.48	1,409		6.44	%	1.35	%	(4.93	)%
Fidelity VIP Asset Manager Portfolio	80	49.19	3,943		1.42	%	1.35	%	(1.21	)%
Fidelity VIP Contrafund® Portfolio	332	31.97 to 32.29	15,738		0.96	%	1.10% to 1.35%		(0.69)% to (0.44)%
Fidelity VIP Index 500 Portfolio	258	14.49 to 14.61	6,319		1.81	%	1.35% to 1.45%		(0.13)% to (0.03)%
Fidelity VIP Investment Grade Bond Portfolio	249	12.70 to 13.33	4,561		2.38	%	1.00% to 1.55%		(2.13)% to (1.59)%
Fidelity VIP Government Money Market	2,342	9.89 to 9.96	23,184		0.03	%	0.60% to 1.67%		(1.13)% to (0.39)%
Non-Affiliated Service Class:
Fidelity VIP Equity-Income Portfolio	18	16.62	306		3.06	%	1.45	%	(5.48	)%
Fidelity VIP Growth Portfolio	42	15.77 to 16.04	672		0.14	%	1.10% to 1.45%		5.50% to 5.88%
Fidelity VIP High Income Portfolio	15	13.62	205		6.97	%	1.45	%	(5.15	)%
Fidelity VIP Asset Manager Portfolio	1	15.40	14		1.47	%	1.45	%	(1.42	)%
Fidelity VIP Contrafund® Portfolio	46	23.66	1,099		0.94	%	1.45	%	(0.90	)%
Fidelity VIP Balanced Portfolio	7	17.14	120		1.42	%	1.45	%	(0.95	)%
Fidelity VIP Mid Cap Portfolio	84	53.59 to 51.19	4,338		0.36	%	1.35% to 1.45%		(2.93)% to (2.83)%
Fidelity VIP Overseas Portfolio	2	14.53	32		1.28	%	1.45	%	1.99	%
Non-Affiliated Service Class 2:
Fidelity VIP Asset Manager Portfolio	108	15.94 to 17.12	1,578		1.33	%	0.60% to 1.67%		(1.73)% to (0.66)%
Fidelity VIP Balanced Portfolio	382	17.85 to 18.64	6,411		1.27	%	1.00% to 1.67%		(1.31)% to (0.64)%
Fidelity VIP Contrafund® Portfolio	1,959	24.33 to 24.40	34,776		0.76	%	0.60% to 1.67%		(1.26)% to (0.19)%
Fidelity VIP Disciplined Small Cap Portfolio	90	13.21 to 13.86	1,209		0.27	%	1.00% to 1.55%		(3.69)% to (3.16)%
Fidelity VIP Equity-Income Portfolio	337	17.68 to 17.49	4,710		2.59	%	0.60% to 1.67%		(5.84)% to (4.81)%
Fidelity VIP Freedom 2010 Portfolio	73	12.15 to 12.66	897		1.32	%	1.15% to 1.67%		(2.19)% to (1.67)%
Fidelity VIP Freedom 2015 Portfolio	163	12.09 to 12.83	1,988		1.32	%	1.15% to 1.67%		(2.17)% to (1.65)%
Fidelity VIP Freedom 2020 Portfolio	436	11.88 to 12.43	5,220		1.61	%	1.15% to 1.67%		(2.12)% to (1.60)%
Fidelity VIP Freedom 2025 Portfolio	300	12.32 to 12.90	3,713		1.88	%	1.15% to 1.67%		(2.17)% to (1.65)%
Fidelity VIP Freedom 2030 Portfolio	40	11.89 to 12.48	483		1.45	%	1.15% to 1.55%		(2.07)% to (1.67)%
Fidelity VIP Growth Portfolio	311	15.05 to 14.40	4,921		0.03	%	1.00% to 1.60%		5.20% to 5.84%
Fidelity VIP High Income Portfolio	810	16.46 to 17.22	12,830		6.72	%	0.60% to 1.67%		(5.47)% to (4.44)%
Fidelity VIP Index 500 Portfolio	2,250	20.48 to 15.27	32,118		2.91	%	0.60% to 1.67%		(0.60)% to 0.48%
Fidelity VIP Investment Grade Bond Portfolio	1,814	13.08 to 14.70	23,600		2.50	%	0.60% to 1.67%		(2.50)% to (1.44)%
Fidelity VIP Mid Cap Portfolio	426	29.85 to 27.67	9,404		0.23	%	0.60% to 1.67%		(3.27)% to (2.22)%
Fidelity VIP Overseas Portfolio	349	18.22 to 16.42	3,950		1.08	%	0.60% to 1.67%		1.57% to 2.68%
Fidelity VIP Target Volatility Portfolio	161	10.40 to 10.49	1,685		1.32	%	1.15% to 1.60%		(2.92)% to (2.47)%
Non-Affiliated Class 1:
Columbia VP – Mid Cap Value Fund	151	13.51 to 13.95	2,068		0.00	%	1.00% to 1.67%		(6.57)% to (5.94)%
Franklin Growth and Income VIP Fund	106	20.46 to 20.66	2,172		3.70	%	1.10% to 1.35%		(1.96)% to (1.71)%
Franklin Income VIP Fund	263	21.53 to 21.74	5,659		4.88	%	1.10% to 1.35%		(8.09)% to (7.86)%
JPMorgan IT Mid Cap Value	30	26.89 to 27.91	789		1.00	%	1.00% to 1.55%		(4.16)% to (3.63)%
Morgan Stanley VIF Emerging Markets Debt Portfolio	24	22.03 to 23.82	558		5.66	%	1.00% to 1.55%		(2.65)% to (2.10)%
Morgan Stanley VIF U.S. Real Estate Portfolio	71	32.53 to 34.68	2,617		1.32	%	1.00% to 1.55%		0.59% to 1.15%
Non-Affiliated Class 2:
American Funds I.S. Managed Risk Asset Allocation Fund	234	10.12 to 10.25	2,372		1.62	%	1.00% to 1.60%		(2.65)% to (2.06)%
Columbia VP – Small Cap Value Fund	125	19.30 to 20.19	2,440		0.57	%	1.00% to 1.67%		(7.88)% to (7.25)%

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

5. Financial Highlights (continued)



For Year Ended 2015					Investment
	Units	Unit Value	Net Assets		Income		Expense Ratio	Total Return
Subaccount	(000s)	Range	(000s)		Ratio (**)		Range (***)	Range (****)
Non-Affiliated Class 2 (continued):
Franklin Growth and Income VIP Fund	464	$18.42 to $20.74	7,671		3.40	%	1.00% to 1.67%	(2.56)% to (1.90)%
Franklin Income VIP Fund	1,300	17.82 to 17.87	19,732		4.84	%	0.60% to 1.67%	(8.61)% to (7.61)%
Franklin Large Cap Growth VIP Fund	285	18.32 to 21.80	$	4,543	0.27	%	1.00% to 1.67%	3.86% to 4.57%
Franklin Mutual Shares VIP Fund	1,332	18.09 to 21.40	17,277		3.29	%	1.00% to 1.67%	(6.52)% to (5.89)%
Franklin Small Cap Value VIP Fund	107	12.42 to 13.18	1,367		0.66	%	1.00% to 1.67%	(8.93)% to (8.31)%
Invesco V.I. American Franchise Fund	97	20.17 to 21.20	1,749		0.00	%	0.60% to 1.67%	3.00% to 4.12%
Invesco V.I. American Value Fund	218	14.52 to 15.20	3,192		0.01	%	1.00% to 1.60%	(10.81)% to (10.26)%
Invesco V.I. Comstock Fund	587	14.26 to 19.56	8,009		1.74	%	0.60% to 1.60%	(7.69)% to (6.76)%
Invesco V.I. International Growth Fund	244	10.64 to 10.74	2,588		1.40	%	0.80% to 1.67%	(3.93)% to (3.73)%
Templeton Foreign VIP Fund	670	16.82 to 15.93	7,440		3.22	%	0.60% to 1.67%	(8.05)% to (7.05)%
Templeton Global Bond VIP Fund	549	9.18 to 9.33	5,051		9.73	%	1.00% to 1.60%	(5.83)% to (5.26)%
Templeton Growth VIP Fund	269	16.15 to 18.95	3,770		2.69	%	1.00% to 1.67%	(8.05)% to (7.42)%
Morgan Stanley VIF Emerging Markets Debt Portfolio	97	18.46 to 13.36	1,334		6.82	%	1.00% to 1.67%	(2.82)% to (2.16)%
Morgan Stanley VIF Emerging Markets Equity Portfolio	280	23.59 to 20.86	3,304		0.75	%	0.60% to 1.67%	(12.20)% to (11.24)%
Morgan Stanley VIF U.S. Real Estate Portfolio	345	28.78 to 12.04	4,607		1.18	%	1.00% to 1.67%	0.22% to 0.90%
Non-Affiliated Class 3:
BlackRock Capital Appreciation V.I. Fund	262	13.85 to 14.25	3,652		0.00	%	1.00% to 1.60%	4.91% to 5.54%
BlackRock Global Allocation V.I. Fund	209	10.62 to 10.93	2,252		1.03	%	1.00% to 1.60%	(2.58)% to (1.99)%
TOPS® Managed Risk Moderate Growth ETF Portfolio	219	9.74 to 9.86	2,139		1.39	%	1.15% to 1.60%	(7.96)% to (7.54)%
Non-Affiliated Class 4:
American Funds I.S. Capital Income Builder Fund (April 23, 2015)	7	9.31 to 9.34	68		3.11	%	1.15% to 1.55%	(6.90)% to (6.64)%
American Funds I.S. Global Growth Fund	980	11.04 to 11.18	10,844		4.09	%	1.00% to 1.60%	4.98% to 5.62%
American Funds I.S. Growth Fund	89	11.65 to 11.80	1,036		0.84	%	1.00% to 1.60%	4.88% to 5.52%
American Funds I.S. Growth-Income Fund	1,183	11.29 to 11.43	13,382		4.54	%	1.00% to 1.60%	(0.41)% to 0.20%
American Funds I.S. New World Fund	26	8.86 to 8.97	227		0.69	%	1.00% to 1.60%	(4.92)% to (4.34)%
Non-Affiliated Class A:
DWS Small Cap Index VIP Fund	21	21.87 to 22.75	471		1.02	%	1.35% to 1.45%	(5.98)% to (5.88)%
Non-Affiliated Class B:
DWS Small Cap Index VIP Fund	67	21.03 to 21.97	1,132		0.82	%	1.00% to 1.67%	(6.44)% to (5.81)%
Advisor Class:
PIMCO VIT All Asset Portfolio	105	10.86 to 11.28	1,148		2.47	%	1.00% to 1.60%	(10.64)% to (10.10)%
PIMCO VIT CommodityRealReturn® Strategy Portfolio	438	3.73 to 3.93	1,667		4.20	%	1.00% to 1.67%	(26.90)% to (26.41)%
PIMCO VIT Long-Term U.S. Government Portfolio	29	10.01 to 10.14	289		1.92	%	1.00% to 1.55%	(2.90)% to (2.46)%
PIMCO VIT Low Duration Portfolio	1,041	11.02 to 11.61	11,670		3.46	%	1.00% to 1.67%	(1.45)% to (0.78)%
PIMCO VIT Real Return Portfolio	107	11.12 to 11.71	1,213		3.48	%	1.00% to 1.67%	(4.42)% to (3.77)%
PIMCO VIT Total Return Portfolio	2,941	12.68 to 13.36	38,244		4.63	%	1.00% to 1.67%	(1.31)% to (0.63)%
Investor Class:
Guggenheim VT Global Managed Futures Strategy Fund	106	7.19 to 7.46	774		2.58	%	1.15% to 1.67%	(3.19)% to (2.68)%
Guggenheim VT Multi-Hedge Strategies Fund	70	8.65 to 9.11	622		0.64	%	1.00% to 1.67%	0.15% to 0.83%
Guggenheim VT Long Short Equity Fund	35	9.69 to 10.21	359		0.00	%	1.00% to 1.67%	(0.43)% to 0.25%
ETF Shares:
iShares® Core S&P 500 ETF	1,451	39.85 to 41.59	58,349		2.19	%	1.75% to 2.75%	(1.49)% to (0.48)%
iShares® Core S&P Mid-Cap ETF	438	37.51 to 37.67	16,473		1.52	%	1.75% to 2.75%	(4.97)% to (3.99)%
iShares® Core S&P Small-Cap ETF	220	38.65 to 38.87	8,523		1.45	%	1.75% to 2.75%	(4.76)% to (3.78)%
iShares® Core U.S. Aggregate Bond ETF	59	24.42 to 26.77	1,486		2.27	%	1.75% to 2.75%	(2.28)% to (1.27)%
iShares® iBoxx $ High Yield Corporate Bond ETF	12	26.36 to 28.02	325		5.41	%	1.75% to 2.75%	(7.64)% to (6.69)%
iShares® Intermediate-Term Corporate Bond ETF	41	25.19 to 26.10	1,033		2.50	%	1.90% to 2.75%	(2.19)% to (1.33)%
iShares® International Treasury Bond ETF	359	21.59 to 22.51	7,814		0.12	%	1.75% to 2.75%	(9.79)% to (8.86)%
iShares® S&P 500 Growth ETF	146	41.04 to 43.73	6,067		1.56	%	1.75% to 2.75%	2.48% to 3.53%
iShares® S&P 500 Value ETF	70	38.21 to 38.44	2,696		2.38	%	1.75% to 2.75%	(5.94)% to (4.98)%
iShares® TIPS Bond ETF	9	22.05 to 25.56	218		0.32	%	1.75% to 2.75%	(4.46)% to (3.47)%
Vanguard® Developed Markets Index Fund, ETF Shares	284	29.70 to 27.38	8,328		2.76	%	1.75% to 2.75%	(3.10)% to (2.10)%

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

5. Financial Highlights (continued)



For Year Ended 2015					Investment
	Units	Unit Value	Net Assets		Income		Expense Ratio	Total Return
Subaccount	(000s)	Range	(000s)		Ratio (**)		Range (***)	Range (****)
ETF Shares (continued):
Vanguard® Dividend Appreciation Index Fund, ETF Shares	56	$35.15 to $37.72	2,015		2.33	%	1.75% to 2.75%	(4.62)% to (3.64)%
Vanguard® Emerging Markets Stock Index Fund, ETF Shares	24	20.46 to 18.17	465		2.85	%	1.75% to 2.75%	(18.14)% to (17.30)%
Vanguard® Intermediate-Term Corporate Bond Index Fund, ETF Shares	7	26.77 to 29.48	191		3.27	%	1.75% to 2.75%	(1.85)% to (0.85)%
Vanguard® Large-Cap Index Fund, ETF Shares	31	39.76 to 41.10	1,221		1.93	%	1.75% to 2.75%	(1.75)% to (0.74)%
Vanguard® Mega Cap Index Fund, ETF Shares	4	39.89 to 41.40	$	171	2.09	%	1.75% to 2.75%	(1.35)% to (0.34)%
Vanguard® Real Estate Index Fund, ETF Shares	14	37.92 to 40.24	535		3.90	%	1.75% to 2.75%	(0.39)% to 0.63%
Vanguard® Short-Term Bond Index Fund, ETF Shares	22	23.39 to 24.16	527		1.33	%	1.90% to 2.75%	(1.85)% to (0.99)%
Vanguard® Total Bond Market Index Fund, ETF Shares	2,358	24.35 to 26.78	58,404		2.46	%	1.75% to 2.75%	(2.20)% to (1.19)%

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

5. Financial Highlights (continued)



For Year Ended 2014					Investment
	Units	Unit Value	Net Assets		Income		Expense Ratio		Total Return
Subaccount	(000s)	Range	(000s)		Ratio (**)		Range (***)		Range (****)
Affiliated
Touchstone VST Active Bond Fund	863	$13.24 to $16.27	$	11,784	2.51	%	1.00% to 1.67%		2.09% to 2.78%
Touchstone VST Aggressive ETF Fund	927	18.95 to 18.49	15,659		0.00	%	0.60% to 2.15%		5.18% to 6.85%
Touchstone VST Conservative ETF Fund	903	13.79 to 16.20	12,905		1.14	%	0.60% to 2.15%		2.97% to 4.59%
Touchstone VST Focused Fund	503	27.28 to 25.90	10,416		0.00	%	0.60% to 1.67%		11.21% to 12.42%
Touchstone VST Large Cap Core Equity Fund	1,576	19.80 to 17.94	25,357		1.09	%	1.00% to 1.67%		13.01% to 13.78%
Touchstone VST Moderate ETF Fund	1,079	16.60 to 17.76	15,997		1.44	%	0.60% to 2.15%		4.66% to 6.32%
Non-Affiliated Initial Class:
Fidelity VIP Balanced Portfolio	159	14.80 to 14.91	3,028		1.43	%	1.10% to 1.35%		8.77% to 9.05%
Fidelity VIP Overseas Portfolio	103	9.14 to 9.54	2,352		1.23	%	1.00% to 1.55%		(9.5)% to (9.00)%
Fidelity VIP Equity-Income Portfolio	242	74.86	12,186		2.73	%	1.35	%	7.25	%
Fidelity VIP Growth Portfolio	78	93.35	7,265		0.18	%	1.35	%	9.80	%
Fidelity VIP High Income Portfolio	44	25.75	1,138		3.30	%	1.35	%	(0.21	)%
Fidelity VIP Asset Manager Portfolio	100	49.79	4,955		1.32	%	1.35	%	4.41	%
Fidelity VIP Contrafund® Portfolio	391	32.19 to 32.43	18,883		0.94	%	1.10% to 1.35%		10.43% to 10.71%
Fidelity VIP Index 500 Portfolio	305	14.50 to 14.62	7,738		1.51	%	1.35% to 1.45%		11.93% to 12.04%
Fidelity VIP Investment Grade Bond Portfolio	305	12.97 to 13.54	5,640		2.05	%	1.00% to 1.55%		4.19% to 4.77%
Non-Affiliated Service Class:
Fidelity VIP Equity-Income Portfolio	19	17.58	338		2.69	%	1.45	%	7.07	%
Fidelity VIP Growth Portfolio	51	14.95 to 15.15	770		0.08	%	1.10% to 1.45%		9.58% to 9.97%
Fidelity VIP High Income Portfolio	9	14.36	123		2.32	%	1.45	%	(0.39	)%
Fidelity VIP Asset Manager Portfolio	1	15.62	14		1.40	%	1.45	%	4.15	%
Fidelity VIP Contrafund® Portfolio	40	23.87	963		0.85	%	1.45	%	10.20	%
Fidelity VIP Balanced Portfolio	8	17.31	134		1.35	%	1.45	%	8.50	%
Fidelity VIP Mid Cap Portfolio	102	55.20 to 52.68	5,419		0.15	%	1.35% to 1.45%		4.66% to 4.76%
Fidelity VIP Overseas Portfolio	2	14.24	32		1.26	%	1.45	%	(9.49	)%
Non-Affiliated Service Class 2:
Fidelity VIP Asset Manager Portfolio	119	16.22 to 17.24	1,740		1.42	%	0.60% to 1.67%		3.78% to 4.91%
Fidelity VIP Balanced Portfolio	404	18.09 to 18.76	6,960		1.27	%	1.00% to 1.67%		8.18% to 8.92%
Fidelity VIP Contrafund® Portfolio	2,180	24.64 to 24.44	39,494		0.75	%	0.60% to 1.67%		9.79% to 10.99%
Fidelity VIP Disciplined Small Cap Portfolio	106	16.75 to 14.32	1,466		0.11	%	1.00% to 1.60%		3.25% to 3.88%
Fidelity VIP Equity-Income Portfolio	448	18.78 to 18.37	6,515		2.55	%	0.60% to 1.67%		6.67% to 7.83%
Fidelity VIP Freedom 2010 Portfolio	100	12.42 to 12.93	1,258		1.37	%	1.15% to 1.67%		2.47% to 3.01%
Fidelity VIP Freedom 2015 Portfolio	341	12.36 to 12.87	4,235		1.36	%	1.15% to 1.67%		2.71% to 3.25%
Fidelity VIP Freedom 2020 Portfolio	415	12.13 to 12.64	5,076		1.48	%	1.15% to 1.67%		2.85% to 3.39%
Fidelity VIP Freedom 2025 Portfolio	228	12.59 to 13.12	2,880		1.45	%	1.15% to 1.67%		3.10% to 3.65%
Fidelity VIP Freedom 2030 Portfolio	39	12.14 to 12.69	476		1.48	%	1.15% to 1.55%		3.12% to 3.54%
Fidelity VIP Growth Portfolio	455	19.39 to 13.61	6,912		0.00	%	1.00% to 1.67%		9.16% to 9.90%
Fidelity VIP High Income Portfolio	236	17.41 to 18.02	3,813		1.26	%	0.60% to 1.67%		(0.78)% to 0.30%
Fidelity VIP Index 500 Portfolio	1,109	20.61 to 15.20	16,358		1.52	%	0.60% to 1.67%		11.40% to 12.61%
Fidelity VIP Investment Grade Bond Portfolio	1,594	13.42 to 14.91	21,548		2.14	%	0.60% to 1.67%		3.86% to 4.98%
Fidelity VIP Mid Cap Portfolio	519	30.86 to 28.30	11,975		0.02	%	0.60% to 1.67%		4.26% to 5.40%
Fidelity VIP Overseas Portfolio	429	17.94 to 15.99	4,720		1.13	%	0.60% to 1.67%		(9.83)% to (8.85)%
Fidelity VIP Target Volatility Portfolio	95	10.71 to 10.76	1,020		1.72	%	1.15% to 1.60%		7.08% to 7.59%
Non-Affiliated Class 1:
Columbia VP – Mid Cap Value Fund	110	14.46 to 14.83	1,611		0.00	%	1.00% to 1.67%		10.49% to 11.24%
Franklin Growth and Income VIP Fund	143	20.87 to 21.02	2,993		2.57	%	1.10% to 1.35%		7.92% to 8.19%
Franklin Income VIP Fund	303	23.43 to 23.60	7,092		5.06	%	1.10% to 1.35%		3.51% to 3.77%
JPMorgan IT Mid Cap Value	32	28.06 to 28.96	889		0.79	%	1.00% to 1.55%		13.32% to 13.96%
Morgan Stanley VIF Emerging Markets Debt Portfolio	34	22.63 to 24.33	829		5.81	%	1.00% to 1.55%		1.33% to 1.90%
Morgan Stanley VIF U.S. Real Estate Portfolio	89	32.34 to 34.28	3,187		1.41	%	1.00% to 1.55%		27.71% to 28.43%
Non-Affiliated Class 2:
American Funds I.S. Managed Risk Asset Allocation Fund	103	10.40 to 10.46	1,077		0.10	%	1.00% to 1.60%		3.98% to 4.64%
Columbia VP – Small Cap Value Fund	115	20.95 to 21.77	2,436		0.47	%	1.00% to 1.67%		1.33% to 2.02%
Franklin Growth and Income VIP Fund	515	18.90 to 21.14	8,810		2.36	%	1.00% to 1.67%		7.31% to 8.05%
Franklin Income VIP Fund	1,809	19.49 to 19.35	30,434		4.90	%	0.60% to 1.67%		2.87% to 3.99%
Franklin Large Cap Growth VIP Fund	287	17.64 to 20.85	4,504		1.07	%	1.00% to 1.67%		10.58% to 11.34%

Separate Account I

Integrity Life Insurance Company

Notes to Financial Statements (continued)

5. Financial Highlights (continued)



For Year Ended 2014					Investment
	Units	Unit Value	Net Assets		Income		Expense Ratio	Total Return
Subaccount	(000s)	Range	(000s)		Ratio (**)		Range (***)	Range (****)
Non-Affiliated Class 2 (continued):
Franklin Mutual Shares VIP Fund	1,777	$19.35 to $22.74	$	25,815	2.05	%	1.00% to 1.67%	5.33% to 6.05%
Franklin Small Cap Value VIP Fund	125	13.64 to 14.37	1,749		0.58	%	1.00% to 1.67%	(1.11)% to (0.43)%
Invesco V.I. American Franchise Fund	90	19.58 to 20.36	1,621		0.00	%	0.60% to 1.67%	6.36% to 7.52%
Invesco V.I. American Value Fund	180	16.28 to 16.94	2,959		0.22	%	1.00% to 1.60%	7.73% to 8.38%
Invesco V.I. Comstock Fund	501	15.44 to 20.98	7,666		1.15	%	0.60% to 1.60%	7.36% to 8.45%
Invesco V.I. International Growth Fund	178	11.07 to 11.15	1,961		1.58	%	0.80% to 1.67%	(1.26)% to (1.06)%
Templeton Foreign VIP Fund	653	18.29 to 17.14	8,156		1.89	%	0.60% to 1.67%	(12.62)% to (11.66)%
Templeton Global Bond VIP Fund	364	9.74 to 9.84	3,551		5.02	%	1.00% to 1.60%	0.21% to 0.82%
Templeton Growth VIP Fund	318	17.56 to 20.47	4,837		1.50	%	1.00% to 1.67%	(4.44)% to (3.79)%
Morgan Stanley VIF Emerging Markets Debt Portfolio	119	19.00 to 13.65	1,683		5.32	%	1.00% to 1.67%	1.17% to 1.86%
Morgan Stanley VIF Emerging Markets Equity Portfolio	314	26.86 to 23.51	4,392		0.31	%	0.60% to 1.67%	(6.15)% to (5.13)%
Morgan Stanley VIF U.S. Real Estate Portfolio	365	28.71 to 11.94	4,970		1.16	%	1.00% to 1.67%	27.27% to 28.13%
Non-Affiliated Class 3:
BlackRock Capital Appreciation V.I. Fund	224	13.20 to 13.50	2,974		0.00	%	1.00% to 1.60%	6.82% to 7.47%
BlackRock Global Allocation V.I. Fund	218	10.90 to 11.15	2,393		2.40	%	1.00% to 1.60%	0.30% to 0.91%
TOPS® Managed Risk Moderate Growth ETF Portfolio	133	10.59 to 10.67	1,410		1.87	%	1.15% to 1.60%	1.11% to 1.57%
Non-Affiliated Class 4:
American Funds I.S. Global Growth Fund	12	10.52 to 10.57	130		2.04	%	1.15% to 1.55%	5.21% to 5.66%
American Funds I.S. Growth Fund	55	11.11 to 11.16	612		2.52	%	1.15% to 1.60%	11.08% to 11.62%
American Funds I.S. Growth-Income Fund	100	11.33 to 11.41	1,131		2.19	%	1.00% to 1.60%	13.35% to 14.07%
American Funds I.S. New World Fund	8	9.32 to 9.38	75		1.67	%	1.00% to 1.60%	(6.79)% to (6.19)%
Non-Affiliated Class A:
DWS Small Cap Index VIP Fund	24	23.27 to 24.18	582		0.95	%	1.35% to 1.45%	3.22% to 3.33%
Non-Affiliated Class B:
DWS Small Cap Index VIP Fund	88	22.48 to 23.32	1,616		0.74	%	1.00% to 1.67%	2.73% to 3.43%
Advisor Class:
PIMCO VIT All Asset Portfolio	208	12.15 to 12.54	2,548		4.79	%	1.00% to 1.60%	(1.15)% to (0.55)%
PIMCO VIT CommodityRealReturn® Strategy Portfolio	401	5.10 to 5.34	2,084		0.26	%	1.00% to 1.67%	(19.98)% to (19.43)%
PIMCO VIT Long-Term U.S. Government Portfolio	6	10.30 to 10.39	57		2.30	%	1.00% to 1.55%	2.95% to 3.91%
PIMCO VIT Low Duration Portfolio	1,824	11.18 to 11.70	20,697		1.07	%	1.00% to 1.67%	(0.93)% to (0.26)%
PIMCO VIT Real Return Portfolio	152	11.63 to 12.17	1,801		1.33	%	1.00% to 1.67%	1.27% to 1.96%
PIMCO VIT Total Return Portfolio	3,315	12.85 to 13.44	43,609		2.14	%	1.00% to 1.67%	2.44% to 3.13%
Investor Class:
Guggenheim VT Global Managed Futures Strategy Fund	128	7.42 to 7.67	958		0.00	%	1.15% to 1.67%	10.21% to 10.80%
Guggenheim VT Multi-Hedge Strategies Fund	87	8.63 to 9.03	767		0.00	%	1.00% to 1.67%	2.91% to 3.61%
Guggenheim VT Long Short Equity Fund	51	9.73 to 10.18	515		0.00	%	1.00% to 1.67%	1.08% to 1.77%
ETF Shares:
iShares® Core S&P 500 ETF	1,189	40.45 to 41.80	48,435		2.01	%	1.75% to 2.75%	10.47% to 11.60%
iShares® Core S&P Mid-Cap ETF	360	39.48 to 39.23	14,190		1.47	%	1.75% to 2.75%	6.67% to 7.77%
iShares® Core S&P Small-Cap ETF	183	40.58 to 40.40	7,427		1.35	%	1.75% to 2.75%	2.86% to 3.92%
iShares® Core U.S. Aggregate Bond ETF	54	24.99 to 27.12	1,397		2.56	%	1.75% to 2.75%	3.08% to 4.14%
iShares® iBoxx $ High Yield Corporate Bond ETF	13	28.54 to 30.03	375		5.91	%	1.75% to 2.75%	(0.93)% to 0.09%
iShares® Intermediate-Term Corporate Bond ETF	33	25.76 to 26.46	846		2.64	%	1.90% to 2.75%	0.98% to 1.87%
iShares® International Treasury Bond ETF	260	23.93 to 24.70	6,265		1.31	%	1.75% to 2.75%	(5.40)% to (4.43)%
iShares® S&P 500 Growth ETF	121	40.05 to 42.23	4,882		1.52	%	1.75% to 2.75%	11.52% to 12.66%
iShares® S&P 500 Value ETF	62	40.63 to 40.46	2,518		2.32	%	1.75% to 2.75%	9.09% to 10.21%
iShares® TIPS Bond ETF	10	23.08 to 26.48	256		1.48	%	1.75% to 2.75%	0.74% to 1.78%
Vanguard® Developed Markets Index Fund, ETF Shares	225	30.65 to 27.97	6,750		3.43	%	1.75% to 2.75%	(8.58)% to (7.64)%
Vanguard® Dividend Appreciation Index Fund, ETF Shares	49	36.86 to 39.15	1,831		2.09	%	1.75% to 2.75%	7.05% to 8.15%
Vanguard® Emerging Markets Stock Index Fund, ETF Shares	21	25.00 to 21.97	486		2.76	%	1.75% to 2.75%	(2.80)% to (1.80)%
Vanguard® Intermediate-Term Corporate Bond Index Fund, ETF Shares	7	27.28 to 29.73	191		3.24	%	1.75% to 2.75%	4.70% to 5.77%
Vanguard® Large-Cap Index Fund, ETF Shares	31	40.47 to 41.41	1,243		1.91	%	1.75% to 2.75%	10.26% to 11.39%
Vanguard® Mega Cap Index Fund, ETF Shares	5	40.44 to 41.54	222		1.97	%	1.75% to 2.75%	10.22% to 11.35%
Vanguard® Real Estate Index Fund, ETF Shares	14	38.07 to 39.99	522		4.02	%	1.75% to 2.75%	26.76% to 28.06%
Vanguard® Short-Term Bond Index Fund, ETF Shares	12	23.83 to 24.40	279		1.23	%	1.90% to 2.75%	(1.42)% to (0.56)%
Vanguard® Total Bond Market Index Fund, ETF Shares	1,874	24.90 to 27.11	47,472		2.56	%	1.75% to 2.75%	2.99% to 4.04%

STATUTORY-BASIS FINANCIAL STATEMENTS

Integrity Life Insurance Company

Years Ended December 31, 2018, 2017 and 2016

With Report of Independent Auditors

Integrity Life Insurance Company

Statutory-Basis Financial Statements

Years Ended December 31, 2018, 2017 and 2016

Contents



Report of Independent Auditors	1

Financial Statements

Balance Sheets (Statutory-Basis)	3
Statements of Operations (Statutory-Basis)	4
Statements of Changes in Capital and Surplus (Statutory-Basis)	5
Statements of Cash Flow (Statutory-Basis)	6
Notes to Financial Statements (Statutory-Basis)	7

Report of Independent Auditors

The Board of Directors

Integrity Life Insurance Company

We have audited the accompanying statutory-basis financial statements of Integrity Life Insurance Company (the Company), which comprise the balance sheets as of December 31, 2018 and 2017, and the related statements of operations, changes in capital and surplus, and cash flow for each of the three years in the period ended December 31, 2018, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in conformity with accounting practices prescribed or permitted by the Ohio Department of Insurance. Management also is responsible for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error.

Auditor’s Responsibility

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

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

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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

As described in Note 1 to the statutory-basis financial statements, the Company prepared these financial statements using accounting practices prescribed or permitted by the Ohio Department of Insurance, which is a basis of accounting other than U.S. generally accepted accounting principles. The variances between such practices and U.S. generally accepted accounting principles and the effects on the accompanying financial statements are described in Note 1.

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the significance of the matter described in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles paragraph, the statutory-basis financial statements referred to above do not present fairly, in conformity with U.S. generally accepted accounting principles, the financial position of the Company at December 31, 2018 and 2017, or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2018.

Opinion on Statutory-Basis of Accounting

In our opinion, the statutory-basis financial statements referred to above present fairly, in all material respects, the financial position of the Company at December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2018, on the basis of accounting described in Note 1.

/s/ Ernst & Young LLP

Cincinnati, Ohio

April 22, 2019

Integrity Life Insurance Company

Balance Sheets (Statutory-Basis)



	December 31
	2018			2017
Admitted assets	(In Thousands)
Cash and invested assets:
Debt securities	$	5,321,133		$	5,059,296
Preferred and common stocks	412,121			269,143
Investment in common stock of subsidiary	339,005			315,929
Mortgage loans	571,159			455,805
Policy loans	107,926			107,728
Derivatives	61,463			121,934
Cash, cash equivalents and short-term investments	82,756			108,565
Receivable for securities	4,394			3,752
Securities lending reinvested collateral assets	782			5,347
Other invested assets	203,200			205,932
Total cash and invested assets	7,103,939			6,653,431

Investment income due and accrued	50,749			46,276
Current federal income taxes recoverable from parent	6,675			—
Net deferred income tax asset	8,332			12,855
Amounts receivable on reinsurance contracts	53			18,745
Other admitted assets	2,941			2,400
Separate account assets	2,242,401			2,476,506
Total admitted assets	$	9,415,090		$	9,210,213

Liabilities and capital and surplus
Liabilities:
Policy and contract liabilities:
Life and annuity reserves	$	4,748,936		$	4,456,632
Liability for deposit-type contracts	989,440			950,011
Policy and contract claims	216			191
Total policy and contract liabilities	5,738,592			5,406,834

General expense due and accrued	196			203
Current federal income taxes payable to parent	—			191
Transfer to separate accounts due and accrued, net	(43,649		)	(4,562		)
Asset valuation reserve	100,073			105,941
Interest maintenance reserve	10,536			12,447
Amounts payable on reinsurance contracts	79			17,313
Other liabilities	80,892			124,439
Derivatives	2,887			16,889
Payable for securities lending	151,816			178,253
Separate account liabilities	2,242,401			2,476,506
Total liabilities	8,283,823			8,334,454

Capital and surplus:
Common stock, $2 par value, authorized 1,500 shares, issued and outstanding 1,500 shares	3,000			3,000
Paid-in surplus	908,164			658,164
Accumulated surplus	220,103			214,595
Total capital and surplus	1,131,267			875,759
Total liabilities and capital and surplus	$	9,415,090		$	9,210,213

See accompanying notes.

Integrity Life Insurance Company

Statements of Operations (Statutory-Basis)



	Year Ended December 31
	2018			2017			2016
	(In Thousands)
Premiums and other revenues:
Premiums and annuity considerations	$	660,978		$	845,693		$	1,201,816
Net investment income	259,562			263,386			232,326
Considerations for supplementary contracts with life contingencies	7,065			9,563			10,302
Amortization of the interest maintenance reserve	1,677			1,616			1,966
Reserve adjustments on reinsurance ceded	(737,869		)	(72,074		)	(72,484		)
Fees from management of separate accounts	17,233			15,799			13,689
Miscellaneous income - termination of reinsurance agreement	694,579			—			—
Other revenues	4,782			4,051			4,287
Total premiums and other revenues	908,007			1,068,034			1,391,902

Benefits paid or provided:
Death benefits	10,415			9,320			4,710
Annuity benefits	254,002			210,110			184,420
Surrender benefits	426,558			331,983			330,556
Payments on supplementary contracts with life contingencies	8,137			6,092			5,174
Increase (decrease) in policy reserves and other policyholders’ funds	319,453			535,960			799,407
Total benefits paid or provided	1,018,565			1,093,465			1,324,267

Insurance expenses and other deductions:
Commissions	36,971			45,335			65,320
Commissions and expenses on reinsurance assumed	13			15			13
General expenses	47,795			47,215			38,856
Net transfers to (from) separate accounts	(246,141		)	(160,626		)	(149,118		)
Other deductions	6,730			4,160			2,481
Total insurance expenses and other deductions	(154,632		)	(63,901		)	(42,448		)

Gain (loss) from operations before federal income tax expense and net realized capital gains (losses)	44,074			38,470			110,083
Federal income tax expense (benefit), excluding tax on capital gains	11,369			(6,524		)	19,757
Gain (loss) from operations before net realized capital gains (losses)	32,705			44,994			90,326
Net realized capital gains (losses) (excluding gains (losses) transferred to IMR and capital gains tax)	26,516			(23,876		)	25,581
Net income (loss)	$	59,221		$	21,118		$	115,907

See accompanying notes.

Integrity Life Insurance Company

Statements of Changes in Capital and Surplus (Statutory-Basis)



	Common Stock		Paid-In Surplus		Accumulated Surplus			Total Capital and Surplus
	(In Thousands)

Balance, January 1, 2016	$	3,000	$	613,164	$	62,398		$	678,562
Net income (loss)	—		—		115,907			115,907
Change in net deferred income tax	—		—		(2,750		)	(2,750		)
Net change in unrealized gains (losses) on investments (net of deferred tax expense (benefit) of ($8,635))	—		—		(12,445		)	(12,445		)
Net change in nonadmitted assets and related items	—		—		(6,298		)	(6,298		)
Change in asset valuation reserve	—		—		(9,493		)	(9,493		)
Capital contribution	—		45,000		—			45,000
Change in surplus in separate accounts	—		—		(165		)	(165		)
Balance, December 31, 2016	3,000		658,164		147,154			808,318
Net income (loss)	—		—		21,118			21,118
Change in net deferred income tax	—		—		(22,179		)	(22,179		)
Net change in unrealized gains (losses) on investments (net of deferred tax expense (benefit) of $5,293)	—		—		50,642			50,642
Net change in nonadmitted assets and related items	—		—		28,297			28,297
Change in valuation basis	—		—		6,271			6,271
Change in asset valuation reserve	—		—		(16,941		)	(16,941		)
Change in surplus in separate accounts	—		—		233			233
Balance, December 31, 2017	3,000		658,164		214,595			875,759
Net income (loss)	—		—		59,221			59,221
Change in net deferred income tax	—		—		5,418			5,418
Net change in unrealized gains (losses) on investments (net of deferred tax expense (benefit) of ($5,041))	—		—		(50,916		)	(50,916		)
Net change in nonadmitted assets and related items	—		—		(14,082		)	(14,082		)
Change in asset valuation reserve	—		—		5,868			5,868
Capital contribution	—		250,000		—			250,000
Change in surplus in separate accounts	—		—		(1		)	(1		)
Balance, December 31, 2018	$	3,000	$	908,164	$	220,103		$	1,131,267

See accompanying notes.

Integrity Life Insurance Company

Statements of Cash Flow (Statutory-Basis)



	Year Ended December 31
	2018			2017			2016
	(In Thousands)
Operating activities
Premiums collected net of reinsurance	$	668,240		$	855,586		$	1,211,721
Net investment income received	266,375			273,092			230,505
Benefits paid	(772,018		)	(642,929		)	(599,589		)
Net transfers from (to) separate accounts	207,053			164,150			163,447
Commissions and expense paid	(88,934		)	(100,023		)	(107,490		)
Federal income taxes recovered (paid)	(15,354		)	(28,002		)	(19,534		)
Other, net	24,140			20,785			20,915
Net cash from (for) operations	289,502			542,659			899,975

Investing activities
Proceeds from investments sold, matured or repaid:
Debt securities	1,057,942			721,277			728,407
Preferred and common stocks	123,094			30,267			115,401
Mortgage loans	7,683			6,175			25,016
Other invested assets	24,304			42,823			14,702
Net gains (losses) on cash, cash equivalents and short-term investments	150			(15		)	(1		)
Miscellaneous proceeds	6,396			7,367			11,048
Net proceeds from investments sold, matured or repaid	1,219,569			807,894			894,573

Cost of investments acquired:
Debt securities	(1,328,842		)	(1,639,047		)	(1,720,907		)
Preferred and common stocks	(47,153		)	(64,516		)	(111,325		)
Mortgage loans	(123,037		)	(199,632		)	(97,970		)
Other invested assets	(17,972		)	(39,579		)	(74,889		)
Miscellaneous applications	(8,269		)	(24,410		)	(26,306		)
Total cost of investments acquired	(1,525,273		)	(1,967,184		)	(2,031,397		)

Net change in policy and other loans	(197		)	2,762			2,240
Net cash from (for) investments	(305,901		)	(1,156,528		)	(1,134,584		)

Financing and miscellaneous activities
Capital and paid-in surplus, less treasury stock	4,300			—			45,000
Net deposits on deposit-type contract funds and other insurance liabilities	39,429			429,241			212,929
Other cash provided (applied)	(53,139		)	154,793			5,142
Net cash from (for) financing and miscellaneous sources	(9,410		)	584,034			263,071

Net change in cash, cash equivalents and short-term investments	(25,809		)	(29,835		)	28,462
Cash, cash equivalents and short-term investments:
Beginning of year	108,565			138,400			109,938
End of year	$	82,756		$	108,565		$	138,400

Cash flow information for noncash transactions
Contribution from The Western and Southern Life Insurance Company in the form of common stock securities	$	245,700		$	—		$	—

See accompanying notes.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

1. Nature of Operations and Significant Accounting Policies

Integrity Life Insurance Company (the Company) is a wholly-owned subsidiary of The Western and Southern Life Insurance Company (Western and Southern). The Company, domiciled in the state of Ohio and currently licensed in 49 states and the District of Columbia, specializes in the asset accumulation business with particular emphasis on retirement savings and investment products. For the year ended December 31, 2018, approximately 55.3% of the gross premiums and annuity considerations for the Company were derived from California, Florida, Michigan, New Jersey, Ohio, Pennsylvania, and Texas.

The Company’s wholly-owned insurance subsidiary, National Integrity Life Insurance Company (National Integrity), is currently licensed in eight states and the District of Columbia and distributes similar products, principally in the state of New York. Fort Washington Investment Advisors, Inc. (Fort Washington), a registered investment adviser, is a nonlife insurance subsidiary of Western and Southern and is the investment manager for the Company.

State regulatory authorities have powers relating to granting and revoking licenses to transact business, the licensing of agents, the regulation of premium rates and trade practices, the form and content of insurance policies, the content of advertising material, financial statements and the nature of permitted practices.

Use of Estimates

The preparation of statutory-basis financial statements requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Basis of Presentation

The accompanying financial statements of the Company have been prepared in conformity with accounting practices prescribed or permitted by the Ohio Department of Insurance (the Department). The National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures Manual (NAIC SAP or SSAP) has been adopted as a component of prescribed or permitted practices by the State of Ohio. These practices differ in some respects from U.S. generally accepted accounting principles (GAAP). The more significant differences follow.

Investments

Investments in debt securities and mandatory redeemable preferred stocks are reported at amortized cost or fair value based on the NAIC rating; for GAAP, such fixed maturity investments are designated at purchase as held-to-maturity, trading or available-for-sale. Held-to-maturity fixed investments are reported at amortized cost, and the remaining fixed maturity investments are reported at fair value with unrealized holding gains and losses reported in the statement of operations for those designated as trading and as a separate component of other comprehensive income (loss) for those designated as available-for-sale.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

All single-class and multiclass mortgage-backed/asset-backed securities (e.g., CMOs) are adjusted for the effects of changes in prepayment assumptions on the related accretion of discount or amortization of premium of such securities using the retrospective method. The prospective method is used to determine amortized cost for securities that experience a decline that is deemed to be other-than-temporary. Securities that are in an unrealized loss position which the Company intends to sell, or does not have the intent and ability to hold until recovery, are written down to fair value as a realized loss. Securities that are in an unrealized loss position which the Company has the intent and ability to hold until recovery are written down to the extent the present value of expected future cash flows using the security’s effective yield is lower than the amortized cost. For GAAP purposes, all securities, purchased or retained, that represent beneficial interests in securitized assets (e.g., CMO, CBO, CDO, CLO, MBS and ABS securities), other than high credit quality securities, are adjusted using the prospective method when there is a change in estimated future cash flows. If it is determined that a decline in fair value is other-than-temporary, the cost basis of the security is written down to the extent the present value of expected future cash flows using the security’s effective yield is lower than the amortized cost. If high credit quality securities are adjusted, the retrospective method is used.

The Company monitors other investments to determine if there has been an other-than-temporary decline in fair value. Factors that management considers for each identified security include the following:


•	The extent and length of time the fair value has been below the book/adjusted carrying value;


•	The reasons for the decline in value;


•	Specific credit issues related to the issuer and current economic conditions, including the current and future impact of any specific events;

•

For structured investments (e.g., residential mortgage-backed securities, commercial mortgage-backed securities, asset-backed securities and other structured investments), factors such as overall deal structure and the Company’s position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections are considered;


•	For all equity securities and other debt securities with credit-related declines in fair value, the Company’s intent and ability to hold the security long enough for it to recover its value to book/adjusted carrying value; and


•	For all other debt securities with interest-related declines in fair value, the Company’s intent to sell the security before recovery of its book/adjusted carrying value.

If the decline is judged to be other-than-temporary, an impairment charge to fair value is recorded as a net realized capital loss in the period the determination is made. Under GAAP, if the decline is judged to be other-than-temporary because the Company has the intent to sell the debt security or is more likely than not to be required to sell the debt security before its anticipated recovery, an impairment charge to fair value is recorded as a net realized capital loss. If the decline is judged to be other-than-temporary because the Company does not expect to recover the entire amortized cost basis of the security due to expected credit losses, an impairment charge is recorded to net realized capital loss as the difference between amortized cost and the net present value of expected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

the individual security sold using the seriatim method. The net deferral is reported as the interest maintenance reserve (IMR) in the accompanying balance sheets. Realized capital gains and losses are reported in income net of federal income tax and transfers to the IMR. Under GAAP, realized capital gains and losses are reported in the statement of operations on a pretax basis in the period that the assets giving rise to the gains or losses are sold.

The asset valuation reserve (AVR) provides a valuation allowance for invested assets. The AVR is determined by an NAIC prescribed formula with changes reflected directly in capital and surplus. AVR is not recognized for GAAP.

Subsidiary

The accounts and operations of the Company’s subsidiary are not consolidated with the accounts and operations of the Company as would be required under GAAP.

Policy Acquisition Costs

The costs of acquiring and renewing business are expensed when incurred. Under GAAP, policy acquisition costs, related to traditional life insurance and certain long-duration accident and health insurance policies sold, to the extent recoverable from future policy revenues, would be deferred and amortized over the premium-paying period of the related policies using assumptions consistent with those used in computing policy benefit reserves; for universal life insurance and investment products, to the extent recoverable from future gross profits, deferred policy acquisition costs are amortized generally in proportion to the present value of expected gross profits from surrender charges and investments, mortality, and expense margins.

Nonadmitted Assets

Certain assets designated as “nonadmitted”(principally a portion of deferred tax assets), and other assets not specifically identified as an admitted asset within the NAIC’s Accounting Practices and Procedures Manual, are excluded from the accompanying balance sheets and are charged directly to accumulated deficit. Under GAAP, such assets are included in the balance sheets.

Premiums and Benefits

Revenues for universal life and annuity policies with mortality or morbidity risk, except for guaranteed interest and group annuity contracts, consist of the entire premium received, and benefits incurred represent the total of death benefits paid and the change in policy reserves. Premiums received for annuity policies without mortality or morbidity risk and for guaranteed interest and group annuity contracts are recorded using deposit accounting, and credited directly to an appropriate policy reserve account, without recognizing premium income. Under GAAP, premiums received in excess of policy charges would not be recognized as premium revenue and benefits would represent the excess of benefits paid over the policy account value and interest credited to the account values.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Benefit Reserves

Certain policy reserves are calculated using statutorily prescribed interest and mortality assumptions rather than on estimated expected experience or actual account balances as would be required under GAAP.

Reinsurance

A liability for reinsurance balances is required to be provided for unsecured policy reserves ceded to reinsurers not authorized to assume such business. Changes to those amounts are credited or charged directly to capital and surplus. Under GAAP, an allowance for amounts deemed uncollectible would be established through a charge to earnings.

Policy and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves rather than as assets as would be required under GAAP. Commissions allowed by reinsurers on business ceded are reported as income when incurred rather than being deferred and amortized with policy acquisition costs as required under GAAP.

Deferred Income Taxes

Deferred tax assets are recorded for the amount of gross deferred tax assets expected to be realized in future years, and a valuation allowance is established for deferred tax assets not meeting a more-likely-than-not realization threshold. Deferred tax assets are limited to 1) the amount of federal income taxes paid in prior years that can be recovered through loss carrybacks for existing temporary differences that reverse during a time frame corresponding with Internal Revenue Service (IRS) tax loss carryback provisions, not to exceed three years, including amounts established in accordance with the provision of SSAP No. 5R, plus 2) for entities who meet the required realization threshold in SSAP No. 101, the lesser of the remaining gross deferred tax assets expected to be realized within three years of the balance sheet date or 15% of capital and surplus excluding any net deferred tax assets, electronic data processing equipment and operating software and any net positive goodwill, plus 3) the amount of remaining gross deferred tax assets that can be offset against existing gross deferred tax liabilities. The remaining deferred tax assets are nonadmitted. Under GAAP, a deferred tax asset is recorded for the amount of gross deferred tax assets expected to be realized in all future years, and a valuation allowance is established for deferred tax assets not meeting a more-likely-than-not realization threshold.

Statements of Cash Flow

Cash, cash equivalents and short-term investments in the statements of cash flow represent cash balances and investments with initial maturities of one year or less. Under GAAP, the corresponding captions of cash and cash equivalents include cash balances and investments with initial maturities of three months or less.

Other significant statutory accounting practices follow.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Restricted Assets

The Company has assets pledged as collateral, or otherwise not exclusively under control of the Company, totaling $1,100.1 million and $1,074.2 million as of December 31, 2018 and 2017, respectively. These assets are primarily collateral pledged to the Federal Home Loan Bank (FHLB) and collateral held in relation to the Company's securities lending program. These restricted assets are discussed in more detail in their relevant sections.

Investments

Debt securities, common stocks, preferred stocks, and short-term investments are stated at values prescribed by the NAIC, as follows:

Debt securities not backed by other loans are principally stated at amortized cost using the interest method.

Single-class and multiclass mortgage-backed/asset-backed securities are valued at amortized cost using the interest method including anticipated prepayments. Prepayment assumptions are obtained from Bloomberg and broker-dealer prepayment models or derived from empirical data and are based on the current interest rate and economic environment. The retrospective adjustment method is used to value all such securities except securities that are deemed to be other-than-temporarily impaired and securities that are principal-only or interest-only, which are valued using the prospective method.

Unaffiliated common stocks, other than FHLB stock, are unrestricted and reported at fair value utilizing publicly quoted prices from third-party pricing services and the related unrealized capital gains and losses are reported in capital and surplus along with any adjustment for federal income taxes. FHLB stock is carried at cost and is restricted. At December 31, 2018 and 2017, the Company owned $26.3 million and $22.9 million, of FHLB stock, respectively. The FHLB stock is held in conjunction with the issuance of deposit contracts to the FHLB. See Note 9 for further description.

Redeemable preferred stocks that have characteristics of debt securities and are rated as medium quality or better are reported at cost or amortized cost. All other redeemable preferred stocks are reported at the lower of cost, amortized cost or fair value. Perpetual preferred stocks that have the characteristics of equity securities and are rated as medium quality or better are reported at cost. All other perpetual preferred stocks are reported at the lower of cost or fair value utilizing publicly quoted prices from third-party pricing services and the related unrealized capital gains and losses are reported in capital and surplus along with any adjustment for federal income taxes.

Short-term investments include investments with remaining maturities of one year or less at the date of acquisition and are principally stated at amortized cost, which approximates fair value.

Cash equivalents are short-term highly liquid investments with original maturities of three months or less and are principally stated at amortized cost, which approximates fair value.

The Company’s insurance subsidiary is reported at its underlying statutory equity. The net change in the subsidiary’s equity is included in capital and surplus.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Joint ventures, partnerships, and limited liability companies are carried at the Company’s interest in the underlying audited GAAP equity of the investee. Undistributed earnings allocated to the Company are reported in the change in net unrealized capital gains or losses. Distributions from earnings of the investees are reported as net investment income when received. Because of the indirect nature of these investments, there is an inherent reduction in transparency and liquidity and increased complexity in valuing the underlying investments. As a result, these investments are actively managed by the Company’s management via detailed evaluation of the investment performance relative to risk.

Mortgage loans are reported at unpaid principal balances, less an allowance for impairment. A mortgage loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all principal and interest amounts due according to the contractual terms of the mortgage agreement. When management determines foreclosure is probable, the impairment is other than temporary; the mortgage loan is written down to realizable value and a realized loss is recognized.

Policy loans are reported at unpaid principal balances.

Debt securities and other loan interest are credited to income as it accrues. Dividends are recorded as income on ex-dividend dates. To the extent income is uncertain, due and accrued income is excluded and treated as nonadmitted through surplus.

Realized capital gains and losses are determined using the specific identification method.

Premiums

Life and accident and health premiums are recognized as revenue when due. Premiums for annuity policies with mortality and morbidity risk, except for guaranteed interest and group annuity contracts, are also recognized as revenue when due. Premiums received for annuity policies without mortality or morbidity risk and for guaranteed interest and group annuity contracts are recorded using deposit accounting.

Policy Reserves

Life and annuity reserves are developed by actuarial methods and are determined based on published tables using statutorily specified interest rates and valuation methods that will provide, in the aggregate, reserves that are greater than or equal to the minimum or guaranteed policy cash values or the amounts required by the Department. The Company waives deduction of deferred fractional premiums on the death of life and annuity policy insureds and does not return any premium beyond the date of death. Surrender values on policies do not exceed the corresponding benefit reserves. Policies issued subject to multiple table substandard extra premiums are valued on the standard reserve basis which recognizes the nonlevel incidence of the excess mortality costs. Additional reserves are established when the results of cash flow testing under various interest rate scenarios indicate the need for such reserves, or the net premiums exceed the gross premiums on any insurance in-force.

Contracts issued that do not incorporate mortality or morbidity risk, such as guaranteed interest contracts, are accounted for as deposit-type contracts. Amounts received as payments and amounts withdrawn on deposit-type contracts are recorded directly to the liability for deposit-type contracts.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

The mean reserve method is used to adjust the calculated terminal reserve to the appropriate reserve at December 31. Mean reserves are determined by computing the regular mean reserve for the plan at the rated age and holding, in addition, one-half of the extra premium charge for the year. Policies issued after July 1 for substandard lives, are charged an extra premium plus the regular premium for the true age. Mean reserves are based on appropriate multiples of standard rates of mortality. An asset is recorded for deferred premiums net of loading to adjust the reserve for modal premium payments.

For substandard table ratings, mean reserves are based on 125% to 500% of standard mortality rates. For flat extra ratings, mean reserves are based on the standard or substandard mortality rates increased by 1 to 25 deaths per thousand.

Tabular interest, tabular less actual reserves released, and tabular cost have been determined by formula as prescribed by the NAIC. Tabular interest on funds not involving life contingencies was derived from basic data.

The establishment of appropriate reserves is an inherently uncertain process, and there can be no assurance that the ultimate liability will not exceed the Company’s policy reserves and have an adverse effect on the Company’s results of operations and financial condition. Due to the inherent uncertainty of estimating reserves, it has been necessary, and may over time continue to be necessary, to revise estimated future liabilities as reflected in the Company’s policy reserves.

Reinsurance

Reinsurance premiums and benefits paid or provided are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. The change in reserves for modified coinsurance contracts is recorded on the reserve adjustments on reinsurance ceded line in the statements of operations.

Securities Lending

At December 31, 2018, the Company has loaned $147.8 million and $33.1 million (fair value) in the general and separate account, respectively, of various debt securities, preferred stocks and common stocks as part of a securities lending program administered by Deutsche Bank. At December 31, 2017, the Company has loaned $173.9 million and $71.3 million (fair value) in the general and separate account, respectively, of various debt securities, preferred stocks and common stocks as part of a securities lending program administered by Deutsche Bank. The Company maintains effective control over all loaned securities and, therefore, continues to report such securities as invested assets in the balance sheets.

The Company requires at the initial transaction that the fair value of the cash collateral received must be equal to 102% of the fair value of the loaned securities. The Company monitors the ratio of the fair value of the collateral to loaned securities to ensure it does not fall below 100%. If the fair value of the collateral falls below 100% of the fair value of the securities loaned, the Company nonadmits that portion of the loaned security. At December 31, 2018 and 2017, the Company did not nonadmit any portion of the loaned securities.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

of the Company or is managed by Deutsche Bank, an unaffiliated agent. Collateral managed by an affiliated agent, which approximated $184.1 million and $244.8 million at December 31, 2018 and 2017, respectively, is invested primarily in investment-grade debt securities and cash equivalents and is included in the applicable amount on the balance sheets because the funds are available for the general use of the Company. At December 31, 2018 and 2017, collateral managed by an unaffiliated agent, which approximated $0.8 million and $5.3 million, respectively, was invested in cash equivalents and was included in securities lending reinvested collateral assets on the balance sheet.

The aggregate collateral broken out by maturity date is as follows at December 31, 2018:



	Amortized Cost		Fair Value
	(In Thousands)

Open	$	—	$	—
30 days or less	65,061		65,071
31 to 60 days	3,200		3,196
61 to 90 days	7,900		7,895
91 to 120 days	2,797		2,793
121 to 180 days	10,214		10,194
181 to 365 days	21,398		21,373
1 to 2 years	13,040		12,981
2 to 3 years	—		—
Greater than 3 years	61,418		61,418
Total collateral	$	185,028	$	184,921

At December 31, 2018, all of the collateral held for the securities lending program was invested in tradable securities that could be sold and used to pay for the $185.7 million in collateral calls that could come due under a worst-case scenario where all collateral was called simultaneously.

There is no difference in the policy and procedures for the separate account. In addition, collateral for separate account securities lent is held in the general account with a corresponding payable and receivable between the general and separate accounts. The corresponding payable and receivable is included in the due to/from general account/separate account line on the balance sheets and was $33.9 million and $72.7 million at December 31, 2018 and 2017, respectively.

The Company does not accept collateral that is not permitted by contract or custom to sell or repledge. The Company does not have any securities lending transactions that extend beyond one year from the reporting date.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Separate Accounts

Separate account assets and liabilities reported in the accompanying balance sheets represent funds that are separately administered, principally for nonguaranteed variable annuity contracts and guaranteed market value adjustment annuity contracts. Assets held in the separate account supporting variable annuities are carried at fair value. Assets held in the separate account supporting market value adjusted annuities are carried at the general account basis. These separate account assets are considered legally insulated from the general account. Surrender charges collectible by the general account in the event of annuity contract surrenders are reported as a negative liability rather than an asset. Policy-related activity involving cash flow, such as premiums and benefits, are reported in the accompanying statements of operations in separate line items combined with related general account amounts. Investment income and interest credited on deposits held in guaranteed separate accounts are included in the accompanying statements of operations as a net amount included in net transfers to (from) separate accounts. The Company receives administrative fees for managing the nonguaranteed separate accounts and other fees for assuming mortality and certain expense risks.

Federal Income Taxes

Western and Southern files a consolidated income tax return with its eligible subsidiaries and affiliates, including the Company. The provision for federal income taxes is allocated to the Company using a separate return method based upon a written tax-sharing agreement. The benefits from losses of subsidiaries and affiliates, which are utilized in the consolidated return, will be retained by the subsidiaries and affiliates under the tax-sharing agreement. Western and Southern pays all federal income taxes due for all members of the consolidated group. The Company will then charge or reimburse, as the case may be, the members of the group an amount consistent with the method described in the tax-sharing agreement.

The Company includes interest and penalties in the federal income tax line on the statements of operations.

Accounting Changes

Effective January 1, 2017, the Company updated its valuation methodologies on certain reserves related to guaranteed living withdrawal benefits. This resulted in a change of statutory reserve valuation that is required to be recorded directly to surplus rather than as part of the reserve change recognized in the statements of operations. The Company has recorded a $6.3 million increase to surplus as a result of the change in valuation bases through the change in reserve on account of change in valuation basis on the statements of changes in capital and surplus.

Subsequent Events

The Company recognizes in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the balance sheet date. For nonrecognized subsequent events that must be disclosed to keep the financial statements from being misleading, the Company is required to disclose the nature of the event as well as an estimate of its financial effect, or a statement that such an estimate cannot be made. Management has evaluated subsequent events through the issuance of these financial statements on April 22, 2019.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

2. Investments

The book/adjusted carrying value and fair value of the Company’s investments in debt securities are summarized as follows:



	Book/ Adjusted Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In Thousands)
At December 31, 2018:
U.S. Treasury securities and obligations of U.S. government corporation and agencies	$	48,961	$	12	$	(26	)	$	48,947
Debt securities issued by states of the U.S. and political subdivisions of the states	36,216		1,368		(272		)	37,312
Corporate securities	3,378,199		78,315		(80,516		)	3,375,998
Commercial mortgage-backed securities	579,150		4,703		(8,825		)	575,028
Residential mortgage-backed securities	459,477		15,875		(6,769		)	468,583
Asset-backed securities	819,130		8,639		(11,568		)	816,201
Total	$	5,321,133	$	108,912	$	(107,976	)	$	5,322,069

At December 31, 2017:
U.S. Treasury securities and obligations of U.S. government corporation and agencies	$	61,502	$	17	$	(30	)	$	61,489
Debt securities issued by states of the U.S. and political subdivisions of the states	43,094		2,086		(14		)	45,166
Corporate securities	3,044,263		181,236		(8,504		)	3,216,995
Commercial mortgage-backed securities	534,667		5,666		(2,991		)	537,342
Residential mortgage-backed securities	455,417		22,315		(3,712		)	474,020
Asset-backed securities	920,353		19,913		(3,708		)	936,558
Total	$	5,059,296	$	231,233	$	(18,959	)	$	5,271,570

At December 31, 2018 and 2017, the Company held unrated or below-investment-grade corporate debt securities with a book/adjusted carrying value of $382.2 million and $376.0 million, respectively, with an aggregate fair value of $371.6 million and $393.9 million, respectively. As of December 31, 2018 and 2017, such holdings amount to 7.2% and 7.4%, respectively, of the Company’s investments in debt securities and 4.1% and 4.1%, respectively, of the Company’s total admitted assets. The Company performs periodic evaluations of the relative credit standing of the issuers of these debt securities. The Company considers these evaluations in its overall investment strategy.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Unrealized gains and losses on investments in unaffiliated common stocks and common stock of subsidiary are reported directly in capital and surplus and do not affect net income. The unrealized gains and unrealized losses on, and the cost and fair value of those investments and preferred stocks are as follows:



	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In Thousands)
At December 31, 2018:
Preferred stocks	$	17,409	$	17	$	(690	)	$	16,736

Common stocks, unaffiliated	$	373,088	$	41,259	$	(19,898	)	$	394,449
Common stocks, mutual funds	292		—		(29		)	263
Common stocks, subsidiary	270,806		68,199		—			339,005
	$	644,186	$	109,458	$	(19,927	)	$	733,717

At December 31, 2017:
Preferred stocks	$	21,789	$	1,529	$	—		$	23,318

Common stocks, unaffiliated	$	172,740	$	44,872	$	(1,181	)	216,431
Common stocks, mutual funds	29,202		1,721		—			30,923
Common stocks, subsidiary	270,806		45,123		—			315,929
	$	472,748	$	91,716	$	(1,181	)	$	563,283

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

The following table shows unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.



	Unrealized Losses Less Than 12 Months					Unrealized Losses Greater Than or Equal to 12 Months
	Unrealized Losses Less Than 12 Months					Unrealized Losses Greater Than or Equal to 12 Months
	Unrealized			Fair		Unrealized			Fair
	Losses			Value		Losses			Value
	(In Thousands)
At December 31, 2018:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	—		$	—	$	(26	)	$	5,633
Debt securities issued by states of the U.S. and political subdivisions of the states	(130		)	15,434		(142		)	2,858
Corporate securities	(57,297		)	1,758,753		(23,219		)	316,951
Commercial mortgage-backed securities⁽¹⁾	(3,431		)	317,514		(5,394		)	100,929
Residential mortgage-backed securities⁽¹⁾	(2,955		)	167,692		(3,814		)	119,685
Asset-backed securities⁽¹⁾	(6,105		)	434,132		(5,463		)	167,735
Total	$	(69,918	)	$	2,693,525	$	(38,058	)	$	713,791

Preferred stocks	$	(690	)	$	14,174	$	—		$	—
Common stocks, unaffiliated	$	(19,927	)	$	147,152	$	—		$	—

⁽¹⁾Amounts relate to securities subject to SSAP 43R.



	Unrealized Losses Less Than 12 Months					Unrealized Losses Greater Than or Equal to 12 Months
	Unrealized Losses Less Than 12 Months					Unrealized Losses Greater Than or Equal to 12 Months
	Unrealized			Fair		Unrealized			Fair
	Losses			Value		Losses			Value
	(In Thousands)
At December 31, 2017:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	(23	)	$	5,198	$	(7	)	$	409
Debt securities issued by states of the U.S. and political subdivisions of the states	(14		)	2,986		—			—
Corporate securities	(3,737		)	443,187		(4,767		)	128,392
Commercial mortgage-backed securities⁽¹⁾	(1,097		)	109,858		(1,894		)	52,880
Residential mortgage-backed securities⁽¹⁾	(1,064		)	99,595		(2,648		)	77,763
Asset-backed securities⁽¹⁾	(993		)	188,005		(2,715		)	101,785
Total	$	(6,928	)	$	848,829	$	(12,031	)	$	361,229

Preferred stocks	$	—		$	—	$	—		$	—
Common stocks, unaffiliated	$	(1,181	)	$	32,951	$	—		$	—

⁽¹⁾Amounts relate to securities subject to SSAP 43R.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Investments that are impaired at December 31, 2018 and 2017, for which other-than-temporary impairments have not been recognized, consist mainly of corporate debt securities, asset-backed securities and residential mortgage-backed securities. The aggregated unrealized loss is approximately 3.5% and 1.6% of the carrying value of securities considered temporarily impaired at December 31, 2018 and 2017, respectively. At December 31, 2018, there were a total of 757 securities held that are considered temporarily impaired, 157 of which have been impaired for 12 months or longer. At December 31, 2017, there were a total of 282 securities held that are considered temporarily impaired, 81 of which have been impaired for 12 months or longer. The Company recorded other-than-temporary impairments on securities of $9.1 million, $1.9 million, and $7.1 million for the years ended December 31, 2018, 2017 and 2016, respectively.

The following is a list of each loan-backed security held at December 31, 2018, with a recognized other-than-temporary impairment (OTTI) for the year ended December 31, 2018, where the present value of future cash flows expected to be collected was less than the amortized cost basis of the securities:



CUSIP	Book/ Adjusted Carrying Value Amortized Cost Before Current Period OTTI		Present Value of Future Cash Flows		Recognized Other- Than- Temporary Impairment		Amortized Cost After Other-Than-Temporary Impairment		Fair Value		Date of Other-Than-Temporary Impairment




(In Thousands)
For the year ended, December 31, 2018:

12667G-XD-0	$	1,209	$	1,194	$	15	$	1,194	$	1,177	6/30/2018
126694-HK-7	173		167		6		167		164		6/30/2018
173100-AR-9	745		403		342		403		78		9/30/2018
126694-JX-7	245		243		2		243		245		12/31/2018
76111X-ZU-0	345		331		14		331		333		12/31/2018
Total	XXX		XXX		$	379	XXX		XXX

The Company had no OTTI on loan-backed and structured securities for the year ended December 31, 2018, due to the intent to sell the security or the inability or lack of intent to retain the investment in the security for a period of time sufficient to recover the amortized cost basis.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

A summary of the cost or amortized cost and fair value of the Company’s debt securities at December 31, 2018, by contractual maturity, is as follows:



	Book/Adjusted Carrying Value		Fair Value
	(In Thousands)
Years to maturity:
One or less	$	156,157	$	156,943
After one through five	1,129,690		1,116,055
After five through ten	1,334,048		1,311,437
After ten	843,481		877,822
Mortgage-backed securities/asset-backed securities	1,857,757		1,859,812
Total	$	5,321,133	$	5,322,069

The expected maturities may differ from contractual maturities in the foregoing table because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties and because asset-backed and mortgage-backed securities (including floating-rate securities) provide for periodic payments throughout their lives.

Proceeds from the sales of investments in debt securities during 2018, 2017 and 2016 were $249.5 million, $131.9 million, and $244.7 million; gross gains of $3.0 million, $3.1 million, and $9.6 million and gross losses of $3.3 million, $1.9 million, and $2.0 million were realized on those sales, respectively.

Proceeds from the sales of investments in equity securities during 2018, 2017 and 2016 were $119.3 million, $26.1 million, and $107.7 million; gross gains of $14.1 million, $3.5 million, and $48.0 million and gross losses of $1.8 million, $2.0 million, and $1.8 million were realized on those sales, respectively.

Realized capital gains (losses) are reported net of federal income taxes and amounts transferred to the IMR as follows for the years ended December 31:



	2018			2017			2016
	(In Thousands)

Realized capital gains (losses)	$	23,400		$	(3,530	)	$	50,744
Less amount transferred to IMR (net of related taxes (benefits) of ($62) in 2018, $591 in 2017, and $3,424 in 2016)	(235		)	1,097			6,358
Less federal income tax expense (benefit) on realized capital gains (losses)	(2,881		)	19,249			18,805
Net realized capital gains (losses)	$	26,516		$	(23,876	)	$	25,581

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Net investment income was generated from the following for the years ended December 31:



	2018			2017		2016
	(In Thousands)

Debt securities	$	214,910		$	193,452	$	167,739
Equity securities	11,282			41,932		40,092
Mortgage loans	23,380			16,127		10,098
Policy loans	8,098			8,207		8,974
Cash, cash equivalents and short-term investments	2,423			1,074		607
Other invested assets	4,582			6,167		7,436
Other	(474		)	460		804
Gross investment income	264,201			267,419		235,750
Investment expenses	4,639			4,033		3,424
Net investment income	$	259,562		$	263,386	$	232,326

The Company’s investments in mortgage loans principally involve commercial real estate. At December 31, 2018, 44.6% of such mortgages, or $254.6 million, involved properties located in Colorado, Florida, and Ohio. Such investments consist primarily of first-mortgage liens on completed income-producing properties. The aggregate mortgage outstanding to any one borrower does not exceed $43.5 million. During 2018, the respective minimum and maximum lending rates for mortgage loans issued were 4.54% and 5.22%. At the issuance of a loan, the percentage of any one loan to value of security, exclusive of insured, guaranteed or purchase money mortgage did not exceed 80.0%. During 2018, the Company did not reduce interest rates on any outstanding mortgages.

Derivative Instruments

The Company invests in derivatives as risk management for its equity indexed products. The exposure to credit risk on its interest rate floors and option positions is the risk of loss from a counterparty failing to perform according to the terms of the contract. That exposure includes settlement risk (i.e., the risk that the counterparty defaults after the Company has delivered funds or securities under terms of the contract) that would result in an accounting loss and replacement cost risk (i.e., the cost to replace the contract at current market rates should the counterparty default prior to settlement date). To limit exposure associated with counterparty nonperformance on its option positions, the Company limits its exposure to individual counterparties to 2% of admitted assets.

The Company markets equity indexed annuities. The risk associated with these products is that the ultimate benefit paid could be higher than the return earned from the underlying assets. The Company utilizes custom and exchange-traded call options to economically hedge the S&P 500 index and Goldman Sachs Multi-Asset Equity index exposure embedded in these products with a net notional amount of $1,245.2 million and $1,098.7 million at December 31, 2018 and 2017, respectively. The Company purchases and writes call options to correlate with changes in the annuity features due to movements in the S&P 500 and Goldman Sachs Multi-Asset Equity index. At the beginning of these contracts, a premium is either paid or received for transferring the related risk. The Company retains basis risk and risk associated with actual versus expected assumptions for mortality and lapse rates. The Company does not apply hedge accounting treatment to these call options. The Company recognizes changes in the fair value of these call options through unrealized gains/

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

losses and the related gains/losses from terminations, maturities or expirations through realized capital gains/losses. The change in fair value was $(55.8) million, $58.1 million, and $0.8 million for the years ended December 31, 2018, 2017, and 2016, respectively.

The Company has entered into a collateral agreement with the counterparty whereby under certain conditions the counterparty is required to post assets on the Company’s behalf. The posted amount is equal to the difference between the net positive fair value of the option and the agreed upon thresholds that are based on the credit rating of the counterparty. Inversely, if the net fair value of the option is negative, then the Company may be required to post assets using similar thresholds. At December 31, 2018 and 2017, $47.5 million and $98.2 million, respectively, of cash collateral had been posted to the Company.

Information related to the Company’s derivative instruments as described above and the effects of offsetting on the balance sheet consisted of the following for the years ended December 31:



	2018			2017
	(In Thousands)
Derivative assets:
Gross amount of recognized assets	$	61,463		$	121,934
Gross amounts offset	—			—
Net amount of assets	$	61,463		$	121,934

Derivative liabilities:
Gross amount of recognized liabilities	$	(2,887	)	$	(16,889	)
Gross amounts offset	—			—
Net amount of liabilities	$	(2,887	)	$	(16,889	)

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

3. Fair Values of Financial Instruments

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 stocks, when carried at the lower of cost or market.

The Company uses fair value measurements to record the fair value of certain assets and liabilities and to estimate the fair value of financial instruments not recorded at fair value but required to be disclosed at fair value. Certain financial instruments, particularly policyholder liabilities other than investment-type contracts, are excluded from this fair value discussion.

Fair value is defined as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The Company’s financial assets and liabilities carried at fair value have been classified, for disclosure purposes, based on the following hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three levels. The Company’s policy is to recognize transfers in and transfers out of levels at the beginning of the quarterly reporting period.


•	Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities. The Company’s Level 1 assets and liabilities primarily include exchange-traded equity securities and mutual funds, including those which are part of the Company’s separate account assets.

•

Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. The Company’s Level 2 assets and liabilities primarily include call options, stock warrants, and initially rated NAIC 6 commercial and residential mortgage-backed securities representing senior and subordinated tranches in securitization trusts containing residential mortgage loans, including those which are part of the Company's separate account assets. The Company determined fair value through the use of third-party pricing services utilizing market observable inputs.

•

Level 3 - Significant unobservable inputs for the asset or liability. The Company’s Level 3 assets and liabilities include certain call options. The fair values of these instruments are determined through the use of valuation models that utilize significant unobservable inputs. Also included in Level 3 assets and liabilities are common stocks being priced by utilizing recent financing for similar securities.

Fair value estimates are made at a specific point in time, based on available market information and judgments about the financial instrument, including discount rates, estimates of timing, amount of expected future cash flows and the credit standing of the issuer. Such estimates do not consider the tax impact of the realization of unrealized gains or losses.

For Level 3 investments, the fair value estimates cannot be substantiated by comparison to independent markets. In addition, the disclosed fair value may not be realized in the immediate settlement of the financial instrument.

Certain investments utilize net asset value (NAV) as a practical expedient for fair value. These investments are reported separately from the hierarchy. Common stock utilizing NAV consists of an investment in a business development corporation as defined by the Investment Company Act of 1940. The investment is

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

restricted and cannot be sold without consent from the corporation. The NAV for this investment is $15.00. The Company does not intend to sell any investments utilizing NAV.

As described below, certain fair values are determined through the use of third-party pricing services. Management does not adjust prices received from third parties; however, the Company does analyze the third-party pricing services’ valuation methodologies and related inputs and performs additional evaluation to determine the appropriate level within the fair value hierarchy. The Company performs annual due diligence of third-party pricing services, which includes assessing the vendor’s valuation qualifications, control environment, analysis of asset class-specific valuation methodologies and understanding of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. Care should be exercised in deriving conclusions about the Company’s business, its value or financial position based on the fair value information of financial instruments presented below. The following discussion describes the valuation methodologies utilized by the Company for assets and liabilities measured or disclosed at fair value.

Debt and Equity Securities

The fair values of debt securities and asset/mortgage-backed securities have been determined through the use of third-party pricing services utilizing market observable inputs. Private placement securities trading in less liquid or illiquid markets with limited or no pricing information are valued using either broker quotes or by discounting the expected cash flows using current market-consistent rates applicable to the yield, credit quality and maturity of each security.

The fair values of actively traded equity securities and exchange traded funds (including exchange traded funds with debt like characteristics) have been determined utilizing publicly quoted prices obtained from third-party pricing services. The fair values of certain equity securities for which no publicly quoted prices are available have been determined through the use of third-party pricing services utilizing market observable inputs. Actively traded mutual funds are valued using the net asset values of the funds. The fair value of preferred stock included in Level 3 has been determined by discounting the expected cash flows using current market-consistent rates applicable to the yield. The fair value of common stock included in Level 3 has been determined by utilizing recent financing for similar securities.

Mortgage Loans

The fair values for mortgage loans, consisting principally of commercial real estate loans, are estimated using discounted cash flow analyses, using interest rates currently being offered for similar loans collateralized by properties with similar investment risk. The fair values for mortgage loans in default are established at the lower of the fair value of the underlying collateral less costs to sell or the carrying amount of the loan.

Cash, Cash Equivalents and Short-Term Investments

The fair values of cash, cash equivalents and short-term investments are based on quoted market prices or stated amounts.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Derivative Instruments

The fair values of free-standing derivative positions, primarily call options, are determined through the use of third-party pricing services utilizing market observable inputs or valuation models incorporating significant unobservable inputs, including projected cash flows, applicable swap curves and implied volatilities. The fair value of the stock warrants have been determined through the use of third-party pricing services utilizing market observable inputs. Derivatives included in Level 1 represent the cash deposits with brokers relating to futures. The fair value is based upon the stated amount.

Securities Lending Reinvested Collateral Assets

The fair values of securities lending reinvested collateral assets are determined through the use of third-party sources utilizing publicly quoted prices.

Other Invested Assets

Other invested assets primarily include surplus debentures for which fair values have been determined through the use of third-party pricing services utilizing market observable inputs.

Assets Held in Separate Accounts

Assets held in separate accounts primarily include debt securities, equity securities, mutual funds, stock warrants, and mortgage loans. The fair values of these assets have been determined using the same methodologies as similar assets held in the general account.

Life and Annuity Reserves for Investment-Type Contracts and Deposit Fund Liabilities and Fixed-Indexed Annuity Contracts

The fair value of liabilities for investment-type contracts is based on the present value of estimated liability cash flows, which are discounted using rates that incorporate risk-free rates and margins for the Company’s own credit spread and the riskiness of cash flows. Key assumptions to the cash flow model include the timing of policyholder withdrawals and the level of interest credited to contract balances. Fair values for insurance reserves are not required to be disclosed. However, the estimated fair values of all insurance reserves and investment contracts are taken into consideration in the Company’s overall management of interest rate risk.

The fair value of liabilities for fixed indexed annuities is based on embedded derivatives that have been bifurcated from the host contract. The fair value of embedded derivatives is calculated based on actuarial and capital market assumptions reflecting the projected cash flows over the life of the contract and incorporating expected policyholder behavior. The host is adjusted for acquisition costs with revised accretion rates.

Cash Collateral Payable

The payable represents the obligation to return cash collateral the Company has received relating to derivative instruments. The fair value is based upon the stated amount.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Securities Lending Liability

The liability represents the Company’s obligation to return collateral related to securities lending transactions. The liability is short-term in nature and therefore, the fair value of the obligation approximates the carrying amount.

Separate Account Liabilities

Certain separate account liabilities are classified as investment contracts and are carried at an amount equal to the related separate account assets. Carrying value is a reasonable estimate of the fair value as it represents the exit value as evidenced by withdrawal transactions between contract holders and the Company.

Assets and liabilities measured at fair value on a recurring basis are outlined below:



	Assets (Liabilities) Measured at			Fair Value Hierarchy Level
	Fair Value			Level 1		Level 2			Level 3		NAV
	(In Thousands)
At December 31, 2018
Assets:
Common stocks, unaffiliated	$	368,176		$	360,796	$	—		$	—	$	7,380
Common stocks, mutual funds	263			263		—			—		—
Derivative assets	61,463			3,655		4,506			53,302		—
Separate account assets*	751,595			751,562		33			—		—
Total assets	$	1,181,497		$	1,116,276	$	4,539		$	53,302	$	7,380

Liabilities:
Derivative liabilities	$	(2,887	)	$	—	$	(2,887	)	$	—	$	—


*	Separate account assets measured at fair value in this table do not include assets backing market value adjusted annuities, which are held at amortized cost, with the exception of securities rated NAIC 6 where the security’s fair value is below amortized cost.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016



	Assets (Liabilities) Measured at			Fair Value Hierarchy Level
	Fair Value			Level 1		Level 2			Level 3
	(In Thousands)
At December 31, 2017
Assets:
Residential mortgage-backed securities	$	407		$	—	$	407		$	—
Commercial mortgage-backed securities	8			—		8			—
Common stocks, unaffiliated	193,544			192,264		—			1,280
Common stocks, mutual funds	30,923			30,923		—			—
Derivative assets	121,934			—		21,999			99,935
Separate account assets*	844,764			844,727		37			—
Total assets	$	1,191,580		$	1,067,914	$	22,451		$	101,215

Liabilities:
Derivative liabilities	$	(16,889	)	$	—	$	(16,889	)	$	—


*	Separate account assets measured at fair value in this table do not include assets backing market value adjusted annuities, which are held at amortized cost, with the exception of securities rated NAIC 6 where the security’s fair value is below amortized cost.

There were no transfers between Level 1 and Level 2 of the fair value hierarchy.

The reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2018, is as follows:



	Beginning Asset/ (Liability) as of		Total Realized/ Unrealized Gains (Losses) Included in:					Purchases, Sales, Issuances and Settlements			Transfers Into Level 3*		Transfers Out of Level 3**			Ending Asset/ (Liability) as of
	January 1, 2018		Net Income		Surplus			Purchases, Sales, Issuances and Settlements			Transfers Into Level 3*		Transfers Out of Level 3**			December 31, 2018
	(In Thousands)
Assets:
Common stocks, unaffiliated	$	1,280	$	—	$	—		$	—		$	—	$	(1,280	)	$	—
Derivative assets	99,935		18,552		(51,445		)	(13,791		)	51		—			53,302
Total assets	$	101,215	$	18,552	$	(51,445	)	$	(13,791	)	$	51	$	(1,280	)	$	53,302


*	Transfers into Level 3 are due to change of price source of new derivative product.


**	Transfers out of Level 3 are due to utilizing net asset value.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

The gross purchases, issuances, sales and settlements included in the reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2018, is as follows:



	Purchases		Issuances		Sales		Settlements			Net Purchases, Issuances, Sales and Settlements
	(In Thousands)
Assets:
Common stocks, unaffiliated	$	—	$	—	$	—	$	—		$	—
Derivative assets	26,530		—		—		(40,321		)	(13,791		)
Total assets	$	26,530	$	—	$	—	$	(40,321	)	$	(13,791	)

The reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2017, is as follows:



	Beginning Asset/ (Liability) as of January 1, 2017		Total Realized/ Unrealized Gains (Losses) Included in:				Purchases, Sales, Issuances and Settlements		Transfers Into Level 3		Transfers Out of Level 3		Ending Asset/ (Liability) as of December 31, 2017
	Beginning Asset/ (Liability) as of January 1, 2017		Net Income		Surplus		Purchases, Sales, Issuances and Settlements		Transfers Into Level 3		Transfers Out of Level 3		Ending Asset/ (Liability) as of December 31, 2017
	(In Thousands)
Assets:
Common stocks, unaffiliated	$	—	$	—	$	—	$	1,280	$	—	$	—	$	1,280
Derivative assets	32,975		285		57,624		9,051		—		—		99,935
Total assets	$	32,975	$	285	$	57,624	$	10,331	$	—	$	—	$	101,215



	Purchases		Issuances		Sales		Settlements			Net Purchases, Issuances, Sales and Settlements
	(In Thousands)
Assets:
Common stocks, unaffiliated	$	1,280	$	—	$	—	$	—		$	1,280
Derivative assets	10,997		—		—		(1,946		)	9,051
Total assets	$	12,277	$	—	$	—	$	(1,946	)	$	10,331

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

The following table provides a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities at (in thousands):



December 31, 2018
Security Type	Fair Value		Valuation Technique	Unobservable Input	Input

Derivative assets	$	53,302	Black-Scholes-Merton Model	Implied Volatility	7% - 9.6%



December 31, 2017
Security Type	Fair Value		Valuation Technique	Unobservable Input	Input

Derivative assets	$	99,935	Black-Scholes-Merton Model	Implied Volatility	7% - 26.8%

In isolation, significant increases (decreases) in the implied volatility would typically result in a significantly higher (lower) fair value measurement for Level 3 derivative assets and Level 3 derivative liabilities.

The Company did not have any significant assets or liabilities measured at fair value on a nonrecurring basis as of December 31, 2018 and 2017.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

The carrying amounts and fair values of the Company’s significant financial instruments follow:



	December 31, 2018
	Carrying Amount			Fair Value			Level 1		Level 2			Level 3			NAV
	(In Thousands)
Assets:
Bonds	$	5,321,133		$	5,322,069		$	5,695	$	5,306,415		$	9,959		$	—
Common stock, unaffiliated**	394,449			394,449			387,069		—			—			7,380
Common stock, mutual funds	263			263			263		—			—			—
Preferred stock	17,409			16,736			—		11,769			4,967			—
Mortgage loans	571,159			575,641			—		—			575,641			—
Cash, cash equivalents and short-term investments	82,756			82,766			82,766		—			—			—
Other invested assets, surplus notes	16,065			18,918			—		18,918			—			—
Securities lending reinvested collateral assets	782			782			782		—			—			—
Derivative assets	61,463			61,463			3,655		4,506			53,302			—
Separate account assets	2,224,689			2,215,646			749,838		1,407,307			58,501			—

Liabilities:
Life and annuity reserves for investment-type contracts and deposit fund liabilities	$	(1,624,241	)	$	(1,619,092	)	$	—	$	—		$	(1,619,092	)	$	—
Fixed-indexed annuity contracts	(1,688,528		)	(1,685,823		)	—		—			(1,685,823		)	—
Derivative liabilities	(2,887		)	(2,887		)	—		(2,887		)	—			—
Cash collateral payable	(47,500		)	(47,500		)	—		(47,500		)	—			—
Separate account liabilities*	(1,433,439		)	(1,332,720		)	—		—			(1,332,720		)	—
Securities lending liability	(151,816		)	(151,816		)	—		(151,816		)	—			—

* Variable annuity contracts are considered insurance contracts and therefore, are not included in separate account liabilities for purposes of this disclosure.

** Includes FHLB common stock, which is held at cost.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016



	December 31, 2017
	Carrying Amount			Fair Value			Level 1		Level 2			Level 3
	(In Thousands)
Assets:
Bonds	$	5,059,296		$	5,271,570		$	30,606	$	4,880,020		$	360,944
Common stock, unaffiliated**	216,431			216,431			215,151		—			1,280
Common stock, mutual funds	30,923			30,923			30,923		—			—
Preferred stock	21,789			23,318			—		18,278			5,040
Mortgage loans	455,805			460,984			—		—			460,984
Cash, cash equivalents and short-term investments	108,565			108,569			108,569		—			—
Other invested assets, surplus notes	15,993			20,439			—		20,439			—
Securities lending reinvested collateral assets	5,347			5,347			5,347		—			—
Derivative assets	121,934			121,934			—		21,999			99,935
Separate account assets	2,476,506			2,528,161			847,205		1,523,583			157,373

Liabilities:
Life and annuity reserves for investment-type contracts and deposit fund liabilities	$	(1,654,981	)	$	(1,673,117	)	$	—	$	—		$	(1,673,117	)
Fixed-indexed annuity contracts	(1,491,219		)	(1,518,185		)	—		—			(1,518,185		)
Derivative liabilities	(16,889		)	(16,889		)	—		(16,889		)	—
Cash collateral payable	(98,160		)	(98,160		)	—		(98,160		)	—
Separate account liabilities*	(1,578,996		)	(1,632,139		)	—		—			(1,632,139		)
Securities lending liability	(178,523		)	(178,253		)	—		(178,253		)	—

* Variable annuity contracts are considered insurance contracts and therefore, are not included in separate account liabilities for purposes of this disclosure.

** Includes FHLB common stock, which is held at cost.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

4. Related-Party Transactions

In the fourth quarter of 2018, the Company purchased $87.0 million of bonds in exchange for cash from Western and Southern.

The Company received a $250.0 million capital contribution from Western and Southern in June 2018. The contribution was in the form of $245.7 million in common stock and $4.3 million cash.

The Company received a $34.0 million ordinary dividend from National Integrity in December 2017. The dividend was in the form of cash.

The Company received a $34.0 million ordinary dividend from National Integrity in November 2016. The dividend was in the form of cash.

The Company received a capital contribution of $45.0 million from Western and Southern in December 2016. The capital contribution was in the form of cash.

The Company had $0.8 million and $0.1 million receivable from parent, subsidiaries and affiliates as of December 31, 2018 and 2017, respectively. The Company had $3.9 million and $4.9 million payable to parent, subsidiaries and affiliates as of December 31, 2018 and 2017, respectively. The terms of the settlement generally require that these amounts be settled in cash within 30 days.

Western and Southern guarantees the payment of the Company’s policyholder obligations. In the unlikely event the guarantee would be triggered, Western and Southern may be permitted to take control of the Company’s assets to recover all or a portion of the amounts paid under the guarantee.

5. Reinsurance

Certain premiums and benefits are assumed from and ceded to other insurance companies under various reinsurance agreements. The ceded reinsurance agreements provide the Company with increased capacity to write larger risks and maintain its exposure to loss within its capital resources.

On October 1, 2018, a modified coinsurance agreement with the Company's parent, Western and Southern, was recaptured. Under the terms of the agreement, the Company ceded structured settlements, guaranteed rate option annuities and accumulation products written before July 1, 2002; the Company retained the reserves and the related assets of the business. At the date of recapture, there was no impact to net income or surplus. The recapture adjustments of $694.6 million are offsetting and reported in the statements of operations within the reserve adjustments on reinsurance ceded and miscellaneous income - termination of reinsurance agreement lines.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

The effects of reinsurance on premiums, annuity considerations and deposit-type funds are as follows for the years ended December 31:



	2018			2017			2016
	(In Thousands)

Direct premiums	$	661,672		$	846,742		$	1,203,499
Assumed premiums:
Affiliates	—			—			—
Nonaffiliates	87			98			87
Ceded premiums:
Affiliates	(565		)	(863		)	(1,408		)
Nonaffiliates	(216		)	(284		)	(362		)
Net premiums	$	660,978		$	845,693		$	1,201,816

The Company’s ceded reinsurance arrangements reduced certain other items in the accompanying financial statements by the following amounts as of and for the years ended December 31:



	2018		2017		2016
	(In Thousands)
Benefits paid or provided:
Affiliates	$	46,672	$	71,418	$	74,494
Nonaffiliates	536		776		1,138
Policy and contract liabilities:
Affiliates	—		—		—
Nonaffiliates	813		1,610		1,849
Amounts recoverable on reinsurance contracts:
Affiliates	—		14,742		12,995
Nonaffiliates	—		—		32

In 2018, 2017 and 2016, the Company did not commute any ceded reinsurance nor did it enter into or engage in any agreement that reinsures policies or contracts that were in-force or had existing reserves as of the effective date of such agreements.

At December 31, 2018, the Company has no reserves ceded to unauthorized reinsurers. Amounts payable or recoverable for reinsurance on policy and contract liabilities are not subject to periodic or maximum limits. At December 31, 2018, the Company’s reinsurance recoverables are not material and no individual reinsurer owed the Company an amount that was equal to or greater than 3% of the Company’s capital and surplus.

Neither the Company nor any of its related parties, control directly or indirectly, any reinsurers with whom the Company conducts business. No policies issued by the Company have been reinsured with a foreign company, which is controlled, either directly or indirectly, by a party not primarily engaged in the business of insurance. The Company does not have any reinsurance agreements in effect under which the reinsurer may unilaterally cancel the agreement. At December 31, 2018, there are no reinsurance agreements in effect such that the amount of losses paid or accrued exceed the total direct premium collected. The Company remains obligated for amounts ceded in the event that the reinsurers do not meet their obligations.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

There would be no reduction in surplus at December 31, 2018, if all reinsurance agreements were cancelled.

6. Federal Income Taxes

The Company is included in the consolidated federal income tax return of Western and Southern. The Company had a receivable (payable) from (to) Western and Southern in the amount of $6.7 million and $(0.2) million at December 31, 2018 and 2017, respectively. The tax years 2014 through 2018 remain subject to examination by major tax jurisdictions.

The amount of federal income taxes incurred that will be available for recoupment at December 31, 2018, in the event of future capital losses is $5.0 million, $5.7 million, and $20.0 million from 2018, 2017 and 2016, respectively.

The components of the net deferred tax asset (liability) at December 31 are as follows:



		12/31/2018
		(In Thousands)
		(1)		(2)			(3)
							(Col 1+2)
		Ordinary		Capital			Total

(a)	Gross deferred tax assets	$	55,679	$	12,318		$	67,997
(b)	Statutory valuation allowance adjustments	—		—			—
(c)	Adjusted gross deferred tax assets (a - b)	55,679		12,318			67,997
(d)	Deferred tax assets nonadmitted	15,632		—			15,632
(e)	Subtotal net admitted deferred tax assets (c - d)	40,047		12,318			52,365
(f)	Deferred tax liabilities	33,188		10,845			44,033
(g)	Net admitted deferred tax asset/(net deferred tax liability) (e - f)	$	6,859	$	1,473		$	8,332

		12/31/2017
		(In Thousands)
		(4)		(5)			(6)
							(Col 4+5)
		Ordinary		Capital			Total

(a)	Gross deferred tax assets	$	55,904	$	4,847		$	60,751
(b)	Statutory valuation allowance adjustments	—		—			—
(c)	Adjusted gross deferred tax assets (a - b)	55,904		4,847			60,751
(d)	Deferred tax assets nonadmitted	650		—			650
(e)	Subtotal net admitted deferred tax assets (c - d)	55,254		4,847			60,101
(f)	Deferred tax liabilities	36,958		10,288			47,246
(g)	Net admitted deferred tax asset/(net deferred tax liability) (e - f)	$	18,296	$	(5,441	)	$	12,855

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016



		Change
		(In Thousands)
		(7)			(8)		(9)
							(Col 7+8)
		Ordinary			Capital		Total

(a)	Gross deferred tax assets	$	(225	)	$	7,471	$	7,246
(b)	Statutory valuation allowance adjustments	—			—		—
(c)	Adjusted gross deferred tax assets (a - b)	(225		)	7,471		7,246
(d)	Deferred tax assets nonadmitted	14,982			—		14,982
(e)	Subtotal net admitted deferred tax assets (c - d)	(15,207		)	7,471		(7,736		)
(f)	Deferred tax liabilities	(3,770		)	557		(3,213		)
(g)	Net admitted deferred tax asset/(net deferred tax liability) (e - f)	$	(11,437	)	$	6,914	$	(4,523	)

		12/31/2018
		(In Thousands)
		(1)			(2)		(3)
							(Col 1+2)
Admission Calculation Components SSAP No. 101		Ordinary			Capital		Total

(a)	Federal income taxes paid in prior years recoverable through loss carrybacks	$	—		$	8,735	$	8,735
(b)	Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from (a) above) after application of the threshold limitation (the lesser of (b)1 and (b)2 below)	11,138			—		11,138
	1. Adjusted gross deferred tax assets expected to be realized following the balance sheet date.	11,138			—		11,138
	2. Adjusted gross deferred tax assets allowed per limitation threshold.	XXX			XXX		168,440
(c)	Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from (a) and (b) above) offset by gross deferred tax liabilities	28,909			3,583		32,492
(d)	Deferred tax assets admitted as the result of application of SSAP No. 101 Total ((a) + (b) + (c))	$	40,047		$	12,318	$	52,365

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016



		12/31/2017
		(In Thousands)
		(4)			(5)			(6)
								(Col 4+5)
Admission Calculation Components SSAP No. 101		Ordinary			Capital			Total

(a)	Federal income taxes paid in prior years recoverable through loss carrybacks	$	—		$	332		$	332
(b)	Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from (a) above) after application of the threshold limitation (the lesser of (b)1 and (b)2 below)	12,523			—			12,523
	1. Adjusted gross deferred tax assets expected to be realized following the balance sheet date.	12,523			—			12,523
	2. Adjusted gross deferred tax assets allowed per limitation threshold.	XXX			XXX			129,436
(c)	Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from (a) and (b) above) offset by gross deferred tax liabilities	42,731			4,515			47,246
(d)	Deferred tax assets admitted as the result of application of SSAP No. 101 Total ((a) + (b) + (c))	$	55,254		$	4,847		$	60,101

		Change
		(In Thousands)
		(7)			(8)			(9)
								(Col 7+8)
Admission Calculation Components SSAP No. 101		Ordinary			Capital			Total

(a)	Federal income taxes paid in prior years recoverable through loss	$	—		$	8,403		$	8,403
(b)	Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from (a) above) after application of the threshold limitation (the lesser of (b)1 and (b)2 below)	(1,385		)	—			(1,385		)
	1. Adjusted gross deferred tax assets expected to be realized following the balance sheet date.	(1,385		)	—			(1,385		)
	2. Adjusted gross deferred tax assets allowed per limitation threshold.	XXX			XXX			39,004
(c)	Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from (a) and (b) above) offset by gross deferred tax liabilities	(13,822		)	(932		)	(14,754		)
(d)	Deferred tax assets admitted as the result of application of SSAP No. 101 Total ((a) + (b) + (c))	$	(15,207	)	$	7,471		$	(7,736	)

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016



		2018	2017
		(In Thousands)
(a)	Ratio percentage used to determine recovery period and threshold limitation amount	910%	877%
(b)	Amount of adjusted capital and surplus used to determine recovery period and threshold limitation in (b)2 above	$131,197	$112,019

		12/31/2018
		(1)	(2)

Impact of tax planning strategies		Ordinary	Capital
		(In Thousands)
(a)	Adjusted gross DTAs amount	$55,679	$12,318
(b)	Percentage of adjusted gross DTAs by tax character attributable to the impact of tax planning strategies.	0.00%	12.85%
(c)	Net admitted adjusted gross DTAs amount	$40,047	$12,318
(d)	Percentage of net admitted adjusted gross DTAs by tax character attributable to the impact of tax planning strategies.	0.00%	16.68%

		12/31/2017
		(3)	(4)

Impact of tax planning strategies		Ordinary	Capital
		(In Thousands)
(a)	Adjusted gross DTAs amount	$55,904	$4,847
(b)	Percentage of adjusted gross DTAs by tax character attributable to the impact of tax planning strategies.	2.17%	0.55%
(c)	Net admitted adjusted gross DTAs amount	$55,254	$4,847
(d)	Percentage of net admitted adjusted gross DTAs by tax character attributable to the impact of tax planning strategies.	2.19%	0.55%

		Change
		(5)	(6)
		(Col 1-3)	(Col 2-4)
Impact of tax planning strategies		Ordinary	Capital
		(In Thousands)
(a)	Adjusted gross DTAs amount	$(225)	$7,471
(b)	Percentage of adjusted gross DTAs by tax character attributable to the impact of tax planning strategies.	(2.17)%	12.30%
(c)	Net admitted adjusted gross DTAs amount	$(15,207)	$7,471
(d)	Percentage of net admitted adjusted gross DTAs by tax character attributable to the impact of tax planning strategies.	(2.19)%	16.13%

The Company’s tax planning strategies do include the use of reinsurance.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Current income taxes incurred consist of the following major components:



			12/31/2018			12/31/2017			12/31/2016
(1)	Current income tax		(In Thousands)
	(a)	Federal	$	11,356		$	(6,533	)	$	19,762
	(b)	Foreign	13			9			(5		)
	(c)	Subtotal	11,369			(6,524		)	19,757
	(d)	Federal income tax on net capital gains	(2,881		)	19,249			18,805
	(e)	Utilization of capital loss carryforwards	—			—			—
	(f)	Other	—			—			—
	(g)	Federal and foreign income taxes incurred	$	8,488		$	12,725		$	38,562


			(1)			(2)			(3)
									(Col 1-2)
(2)	Deferred tax assets:		12/31/2018			12/31/2017			Change
	(a)	Ordinary	(In Thousands)
		(1) Discounting of unpaid losses	$	—		$	—		$	—
		(2) Unearned premium revenue	—			—			—
		(3) Policyholder reserves	47,138			49,111			(1,973		)
		(4) Investments	1,131			—			1,131
		(5) Deferred acquisition costs	7,015			6,572			443
		(6) Policyholder dividends accrual	—			—			—
		(7) Fixed assets	—			—			—
		(8) Compensation and benefits accrual	33			34			(1		)
		(9) Pension accrual	—			—			—
		(10) Receivables - nonadmitted	20			17			3
		(11) Net operating loss carryforward	—			—			—
		(12) Tax credit carryforward	—			—			—
		(13) Other	342			170			172
		(99) Subtotal	55,679			55,904			(225		)
	(b)	Statutory valuation allowance adjustment	—			—			—
	(c)	Nonadmitted	15,632			650			14,982
	(d)	Admitted ordinary deferred tax assets (2a99 - 2b - 2c)	40,047			55,254			(15,207		)
	(e)	Capital
		(1) Investments	12,318			4,847			7,471
		(2) Net capital loss carryforward	—			—			—
		(3) Real estate	—			—			—
		(4) Other	—			—			—
		(99) Subtotal	12,318			4,847			7,471
	(f)	Statutory valuation allowance adjustment	—			—			—
	(g)	Nonadmitted	—			—			—
	(h)	Admitted capital deferred tax assets (2e99- 2f - 2g)	12,318			4,847			7,471
	(i)	Admitted deferred tax assets (2d + 2h)	$	52,365		$	60,101		$	(7,736	)

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016



			(1)		(2)		(3)
							(Col 1-2)
			12/31/2018		12/31/2017		Change
(3)	Deferred tax liabilities:		(In Thousands)
	(a)	Ordinary
		(1) Investments	$	3,196	$	5,373	$	(2,177	)
		(2) Fixed assets	—		—		—
		(3) Deferred and uncollected premium	—		—		—
		(4) Policyholder reserves	29,827		31,220		(1,393		)
		(5) Other	165		365		(200		)
		(99) Subtotal	33,188		36,958		(3,770		)
	(b)	Capital
		(1) Investments	10,845		10,288		557
		(2) Real estate	—		—		—
		(3) Other	—		—		—
		(99) Subtotal	10,845		10,288		557
	(c)	Deferred tax liabilities (3a99 + 3b99)	$	44,033	$	47,246	$	(3,213	)

(4)	Net deferred tax assets/liabilities (2i - 3c)		$	8,332	$	12,855	$	(4,523	)

Among the more significant book-to-tax adjustments were the following:



	12/31/2018			Effective Tax Rate		12/31/2017			Effective Tax Rate		12/31/2016			Effective Tax Rate
	(In Thousands)					(In Thousands)					(In Thousands)
Provision computed at statutory rate	$	14,170		21.00	%	$	12,229		35.00	%	$	56,290		35.00	%
Dividends received deduction	(1,270		)	(1.88	)	(13,384		)	(38.31	)	(13,417		)	(8.34	)
Derivative adjustment	(11,556		)	(17.13	)	20,327			58.18		282			0.18
Tax credits	(1,945		)	(2.88	)	(6,438		)	(18.43	)	(1,732		)	(1.08	)
Change in federal tax rate	1,425			2.11		18,208			52.11		—			—
Statutory reserve change	—			—		2,195			6.29		—			—
Other	193			0.29		226			0.65		(111		)	(0.07	)
Other invested assets, nonadmitted change and stock transfer	2,053			3.04		1,541			4.41		—			—
Total statutory income taxes	$	3,070		4.55	%	$	34,904		99.90	%	$	41,312		25.69	%

Federal taxes incurred	$	8,488		12.58	%	$	12,725		36.42	%	$	38,562		23.98	%
Change in net deferred income taxes	(5,418		)	(8.03	)	22,179			63.48		2,750			1.71
Total statutory income taxes	$	3,070		4.55	%	$	34,904		99.90	%	$	41,312		25.69	%

At December 31, 2018, the Company had $0.0 of net operating loss carryforwards, net capital loss carryforwards and tax credit carry forwards; the company had $0.0 million of deferred tax liabilities that are not recognized.

On December 22, 2017, the Tax Act was enacted, significantly changing the US income tax law. Among the provisions of the Tax Act were the establishment of a flat corporate income tax rate of 21%, a general repeal of net operating loss carrybacks and a reduction in the maximum deduction for net operating loss carryforwards arising in tax years beginning after 2017, and the elimination or reduction of certain deductions, exclusions and credits. The Tax Act is aimed at encouraging economic growth through the reduction in corporate income tax rates and simplification of the tax law which will create a broadened tax base.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

The Company has recognized the effects of the tax rate change on its deferred tax balances in its December 31, 2017 financial statements. The re-measurement of deferred tax assets and liabilities resulted in a reduction of net deferred tax assets of $9.0 million, of which $(9.2) million and $18.2 million was recorded as an adjustment to the change in net unrealized capital gains (losses) and the change in net deferred income tax, respectively. Upon issuance of the Company’s financial statements for the year ended December 31, 2017, the Company’s accounting for certain income tax effects of the Tax Act was incomplete; however, the Company included reasonable estimates of these balances in its re-measurement of deferred tax assets and liabilities. At December 31, 2018, the Company has completed its accounting for all the enactment-date income tax effects of the Tax Act.

The Company is subject to annual examination by the Internal Revenue Service (IRS). The Company filed amended tax returns for years 2014 through 2016 to elect a reserve methodology pursuant to Internal Revenue Code section 807(d)(4), a Code section stricken by the Tax Cuts and Jobs Act. The Company believes that the resulting reserve deduction is more likely than not to be sustained, however guidance is lacking as to when such an election can be made. The Company recorded an uncertain tax reserve of $0.6 million in the 2018 financial statements with respect to this position.

7. Capital and Surplus

The Company is required by statutory regulations to meet minimum risk-based capital standards. Risk-based capital is a method of measuring the minimum amount of capital appropriate for an insurance company to support its overall business operations in consideration of its size and risk profile. At December 31, 2018 and 2017, the Company exceeded the minimum risk-based capital.

Ohio insurance law limits the amount of dividends that can be paid to a parent in a holding company structure without prior approval of the regulators to the greater of 10% of statutory surplus or statutory net income as of the preceding December 31 less any dividends paid in the preceding 12 months, but only to the extent of earned surplus as of the preceding December 31. Based on these limitations, the Company is able to pay dividends of up to $113.1 million by the end of 2019 without seeking prior regulatory approval based on capital and surplus of $1,131.3 million at December 31, 2018.

8. Commitments and Contingencies

The Company is named as a defendant in various legal actions arising principally from claims made under insurance policies and contracts. The Company believes the resolution of these actions will not have a material effect on the Company’s financial position or results of operations.

At December 31, 2018, the Company does not have any material lease agreements for office space or equipment.

At December 31, 2018, the Company has future commitments to provide additional capital contributions of $27.4 million to investments in joint ventures, limited partnerships and limited liability companies.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

9. Annuity Reserves and Deposit-Type Contract Liabilities

At December 31, 2018, the Company’s general and separate account annuity reserves and deposit-type contract liabilities that are subject to discretionary withdrawal (with adjustment), subject to discretionary withdrawal (without adjustment), and not subject to discretionary withdrawal provisions are summarized as follows:



	General Account			Separate Account With Guarantees		Separate Account Non-guaranteed		Total		Percent
	(In Thousands)
Subject to discretionary withdrawal:
With fair value adjustment	$	(1,088	)	$	835,696	$	—	$	834,608	10.8	%
At book value less current surrender charge of 5% or more	1,762,503			597,743		—		2,360,246		30.7
At fair value	—			—		731,477		731,477		9.5
Total with adjustment or at market value	$	1,761,415		$	1,433,439	$	731,477	$	3,926,331	51.0
Subject to discretionary withdrawal at book value without adjustment (minimal or no charge or adjustment)	565,040			—		—		565,040		7.3
Not subject to discretionary withdrawal	3,201,027			—		—		3,201,027		41.7
Total annuity reserves and deposit-type contract liabilities (before reinsurance)	$	5,527,482		$	1,433,439	$	731,477	$	7,692,398	100.0	%
Less reinsurance ceded	813			—		—		813
Net annuity reserves and deposit-type contract liabilities	$	5,526,669		$	1,433,439	$	731,477	$	7,691,585

Interest rate changes may have temporary effects on the sale and profitability of annuity products offered by the Company. Although the rates offered by the Company are adjustable in the long-term, in the short-term they may be subject to contractual and competitive restrictions, which may prevent timely adjustment. The Company’s management constantly monitors interest rates with respect to a spectrum of product durations and sells annuities that permit flexible responses to interest rate changes as part of the Company’s management of interest spreads. However, adverse changes in investment yields on invested assets will affect the earnings on those products with a guaranteed return.

Federal Home Loan Bank

The Company is a member of the FHLB of Cincinnati. Through its membership, the Company has conducted business activity (borrowings) with the FHLB. It is part of the Company’s strategy to utilize these funds to increase profitability. The Company has determined the actual/estimated maximum borrowing capacity as $805.0 million. The Company calculated this amount after a review of its pledgeable assets (both pledged and unpledged) and after applying the respective FHLB borrowing haircuts.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

FHLB Capital Stock – General Account:



	December 31
	2018		2017
	(In Thousands)
Membership stock - Class A (not eligible for redemption)	$	11,052	$	9,599
Membership stock - Class B	—		—
Activity stock	15,220		13,288
Excess stock	—		—
Aggregate total	$	26.272	$	22.887
Actual or estimated borrowing capacity as determined by the insurer	$	805,000	$	765,000

Collateral Pledged to FHLB – General Account:



	2018								2017
	Fair Value		Carrying Value		Aggregate Total Borrowing		Borrowed at Time of Maximum Collateral		Fair Value		Carrying Value		Aggregate Total Borrowing		Borrowed at Time of Maximum Collateral
	(In Thousands)
Total as of reporting date	$	881,617	$	883,098	$	686,067	XXX		$	809,546	$	795,466	$	663,848	XXX
Maximum during reporting date	$	901,781	$	905,690	XXX		$	759,315	$	809,546	$	795,466	XXX		$	663,848

Borrowing from FHLB - General Account:



	2018						2017
	At Reporting Date		Reserves Established at Reporting Date		Maximum Amount During Period		At Reporting Date		Reserves Established at Reporting Date
	(In Thousands)
Funding agreements	$	686,067	$	679,318	$	759,315	$	663,848	$	652,801
Debt	—		XXX		—		—		XXX
Aggregate total	$	686,067	$	679,318	$	759,315	$	663,848	$	652,801

The Company does not have any prepayment obligations under these FHLB borrowing arrangements.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

10. Separate Accounts

The Company’s guaranteed separate account consists of non-indexed, guaranteed rate options that include market value adjustments and systematic transfer options. The guaranteed rate options are sold in fixed annuity products and as investment options within the Company’s variable annuity products. The guaranteed rate options and systematic transfer options carry a minimum interest guarantee based on the guarantee period selected by the policyholder. The fixed annuity products offered provide a death benefit equal to the account value, with one product offering an optional death benefit ranging from 25% to 40% of the gain in the contract. The fixed investment options offered within the Company’s variable annuity products provide the death benefits listed below for variable annuities.

The Company’s nonguaranteed separate accounts consist of subaccounts available through variable annuities and variable life insurance. The net investment experience of each subaccount is credited directly to the policyholder and can be positive or negative. The variable annuities include guaranteed minimum death benefits that vary by product and include optional death benefits available on some products. The death benefits offered by the Company include the following: account value, return of premium paid, a death benefit that is adjusted after seven years to the current account value, a death benefit that is adjusted annually to the current account value, and an additional death benefit ranging from 25% to 40% of the gain in the contract. Some variable annuities also provide living benefits, which include guaranteed accumulation amounts on a date certain, guaranteed minimum withdrawal amounts and guaranteed minimum lifetime withdrawal amounts. The death benefit under the variable life insurance policies may vary with the investment performance of the underlying investments in the separate accounts.

To compensate the general account for risk taken, the separate accounts paid risk charges of $4.2 million, $3.2 million, $2.4 million, $2.2 million and $1.7 million in 2018, 2017, 2016, 2015 and 2014, respectively. The Company’s general account paid $0.2 million, $0.1 million, $0.2 million, $0.2 million and $0.2 million towards separate account guarantees in 2018, 2017, 2016, 2015, and 2014, respectively.

Integrity Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Information regarding the separate accounts of the Company as of and for the year ended December 31, 2018, is as follows:



	Separate Accounts With Guarantees
	Nonindexed Guaranteed Less Than/ Equal to 4%		Nonindexed Guaranteed More Than 4%		Nonguaranteed Separate Accounts		Total
	(In Thousands)

Premiums, considerations or deposits	$	42,356	$	2,307	$	50,207	$	94,870

Reserves for separate accounts with assets at:
Fair value	$	—	$	—	$	737,693	$	737,693
Amortized cost	1,409,872		23,567		—		1,433,439
Total reserves	$	1,409,872	$	23,567	$	737,693	$	2,171,132

Reserves for separate accounts by withdrawal characteristics:
Subject to discretionary withdrawal:
With fair value adjustment	$	821,956	$	13,740	$	—	$	835,696
At book value without fair value adjustment and with current surrender charge of 5% or more	587,916		9,827		—		597,743
At fair value	—		—		737,693		737,693
At book value without fair value adjustment and with current surrender charge of less than 5%	—		—		—		—
Subtotal	1,409,872		23,567		737,693		2,171,132
Not subject to discretionary withdrawal	—		—		—		—
Total separate accounts reserves	$	1,409,872	$	23,567	$	737,693	$	2,171,132

A reconciliation of the amounts transferred to and from the separate accounts for the year ended December 31, 2018, is presented below:



	2018
	(In Thousands)
Transfers as reported in the Summary of Operations of the Separate Accounts Statement:
Transfers to separate accounts	$	94,870
Transfers from separate accounts	341,339
Net transfers to (from) separate accounts	(246,469		)

Reconciling adjustments:
Policy deductions and other expenses	590
Other changes in surplus in Separate Account Statement	(1		)
Other account adjustments	(261		)
Transfers as reported in the Summary of Operations of the Company	$	(246,141	)

STATUTORY-BASIS FINANCIAL STATEMENTS

The Western and Southern Life Insurance Company

Years Ended December 31, 2018, 2017 and 2016

With Report of Independent Auditors

The Western and Southern Life Insurance Company

Statutory-Basis Financial Statements

Years Ended December 31, 2018, 2017 and 2016

Contents



Report of Independent Auditors	1

Financial Statements

Balance Sheets (Statutory-Basis)	3
Statements of Operations (Statutory-Basis)	4
Statements of Changes in Capital and Surplus (Statutory-Basis)	5
Statements of Cash Flow (Statutory-Basis)	6
Notes to Financial Statements (Statutory-Basis)	7

Report of Independent Auditors

The Board of Directors

The Western and Southern Life Insurance Company

We have audited the accompanying statutory-basis financial statements of The Western and Southern Life Insurance Company (the Company), which comprise the balance sheets as of December 31, 2018 and 2017, and the related statements of operations, changes in capital and surplus, and cash flow for each of the three years in the period ended December 31, 2018, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in conformity with accounting practices prescribed or permitted by the Ohio Department of Insurance. Management also is responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error.

Auditor’s Responsibility

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

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

Adverse Opinion on U.S. Generally Accepted Accounting Principles

Opinion on Statutory-Basis of Accounting

/s/ Ernst & Young LLP

Cincinnati, Ohio

April 22, 2019

The Western and Southern Life Insurance Company

Balance Sheets (Statutory-Basis)



	December 31
	2018			2017
Admitted assets	(In Thousands)
Cash and invested assets:
Debt securities	$	2,937,451		$	3,544,456
Preferred and common stocks	717,423			1,471,824
Investments in common stocks of subsidiaries	3,193,138			2,150,761
Mortgage loans	59,146			49,229
Policy loans	161,223			164,706
Real estate:
Properties held for the production of income	3,193			3,327
Properties occupied by the Company	23,729			24,479
Cash, cash equivalents and short-term investments	87,913			230,950
Receivable for securities	1,581			2,143
Securities lending reinvested collateral assets	54,253			62,048
Other invested assets	1,643,941			1,635,171
Total cash and invested assets	8,882,991			9,339,094

Investment income due and accrued	40,335			44,164
Premiums deferred and uncollected	50,247			51,020
Current federal income taxes recoverable	—			26,766
Net deferred income tax asset	139,106			24,178
Receivables from parent, subsidiaries and affiliates	31,061			36,273
Other admitted assets	7,758			24,262
Separate account assets	961,136			1,005,694
Total admitted assets	$	10,112,634		$	10,551,451

Liabilities and capital and surplus
Liabilities:
Policy and contract liabilities:
Life and annuity reserves	$	2,701,370		$	2,681,638
Accident and health reserves	262,004			258,424
Liability for deposit-type contracts	213,579			224,599
Policy and contract claims	39,863			51,483
Dividends payable to policyholders	38,196			38,658
Premiums received in advance	3,512			3,736
Total policy and contract liabilities	3,258,524			3,258,538

General expense due and accrued	36,243			35,982
Current federal income taxes payable	45,520			—
Transfer to (from) separate accounts due and accrued, net	(25		)	(15		)
Asset valuation reserve	272,020			373,868
Interest maintenance reserve	59,048			51,890
Other liabilities	247,436			282,955
Pension liability	30,893			32,997
Liability for postretirement benefits other than pensions	155,942			164,700
Payable for securities lending	108,841			245,503
Separate account liabilities	961,136			1,005,694
Total liabilities	5,175,578			5,452,112

Capital and surplus:
Common stock, $1 par value, authorized 2,500 shares, issued and outstanding 2,500 shares	2,500			1,000
Paid-in surplus	372,103			112,103
Accumulated surplus	4,562,453			4,986,236
Total capital and surplus	4,937,056			5,099,339
Total liabilities and capital and surplus	$	10,112,634		$	10,551,451

See accompanying notes.

The Western and Southern Life Insurance Company

Statements of Operations (Statutory-Basis)



	Year Ended December 31
	2018			2017			2016
	(In Thousands)
Premiums and other revenues:
Premiums and annuity considerations	$	237,054		$	246,746		$	253,742
Net investment income	466,221			539,164			322,165
Considerations for supplementary contracts with life contingencies	—			—			24
Amortization of the interest maintenance reserve	5,728			3,815			2,911
Commissions and expenses on reinsurance ceded	981			932			888
Miscellaneous income adjustment - termination of reinsurance agreement	(694,579		)	—			—
Other revenues	153			79			2,368
Total premiums and other revenues	15,558			790,736			582,098

Benefits paid or provided:
Death benefits	145,842			143,503			139,560
Annuity benefits	79,245			146,297			119,814
Disability and accident and health benefits	18,298			17,316			16,045
Surrender benefits	64,673			71,352			71,106
Payments on supplementary contracts with life contingencies	393			441			499
Other benefits	5,047			2,916			3,464
Increase in policy reserves and other policyholders’ funds	28,129			39,793			49,042
Total benefits paid or provided	341,627			421,618			399,530

Insurance expenses and other deductions:
Commissions	20,400			23,753			27,606
Commissions and expenses on reinsurance assumed	878			1,214			1,288
General expenses	134,141			134,399			138,995
Net transfers to (from) separate account	(49,514		)	(101,619		)	(69,680		)
Reserve adjustments on reinsurance assumed	(43,412		)	(71,901		)	(72,342		)
Miscellaneous expense adjustment - termination of reinsurance agreement	(694,579		)	—			—
Other deductions	3,973			52,016			42,084
Total insurance expenses and other deductions	(628,113		)	37,862			67,951

Gain (loss) from operations before dividends to policyholders, federal income tax expense, and net realized capital gains (losses)	302,044			331,256			114,617

Dividends to policyholders	52,121			51,964			57,514
Gain (loss) from operations before federal income tax expense and net realized capital gains (losses)	249,923			279,292			57,103
Federal income tax expense (benefit), excluding tax on capital gains	39,879			12,111			5,193
Gain (loss) from operations before net realized capital gains (losses)	210,044			267,181			51,910
Net realized capital gains (losses) (excluding gains (losses) transferred to IMR and capital gains tax)	205,080			2,557			1,688
Net income (loss)	$	415,124		$	269,738		$	53,598

See accompanying notes.

The Western and Southern Life Insurance Company

Statements of Changes in Capital and Surplus (Statutory-Basis)



	Common Stock		Paid-In Surplus		Accumulated Surplus			Total Capital and Surplus
	(In Thousands)

Balance, January 1, 2016	$	1,000	$	55,003	$	4,492,332		$	4,548,335
Net income (loss)	—		—		53,598			53,598
Change in net deferred income tax	—		—		17,794			17,794
Net change in unrealized gains (losses) on investments (net of deferred tax expense (benefit) of $48,990)	—		—		271,374			271,374
Net change in nonadmitted assets and related items	—		—		(26,671		)	(26,671		)
Change in asset valuation reserve	—		—		(65,901		)	(65,901		)
Change in unrecognized post retirement benefit obligation	—		—		21,709			21,709
Correction of traditional life reserves	—		—		(4,707		)	(4,707		)
Balance, December 31, 2016	1,000		55,003		4,759,528			4,815,531
Net income (loss)	—		—		269,738			269,738
Change in net deferred income tax	—		—		(103,027		)	(103,027		)
Net change in unrealized gains (losses) on investments (net of deferred tax expense (benefit) of ($31,715))	—		—		126,689			126,689
Net change in nonadmitted assets and related items	—		—		(64,589		)	(64,589		)
Change in asset valuation reserve	—		—		(32,481		)	(32,481		)
Change in unrecognized post retirement benefit obligation	—		—		30,991			30,991
Capital contribution	—		57,100		—			57,100
Correction of traditional life reserves	—		—		(613		)	(613		)
Balance, December 31, 2017	1,000		112,103		4,986,236			5,099,339
Net income (loss)	—		—		415,124			415,124
Change in net deferred income tax	—		—		165,518			165,518
Net change in unrealized gains (losses) on investments (net of deferred tax expense (benefit) of ($57,122))	—		—		(266,672		)	(266,672		)
Change in net unrealized foreign exchange capital gain (loss)	—		—		(1,770		)	(1,770		)
Change in reserve on account of change in valuation basis	—		—		(692		)	(692		)
Net change in nonadmitted assets and related items	—		—		(651,086		)	(651,086		)
Change in asset valuation reserve	—		—		101,848			101,848
Change in unrecognized post retirement benefit obligation	—		—		11,947			11,947
Issuance of common stock	1,500		—		—			1,500
Capital contribution	—		260,000		—			260,000
Trademark license agreement adjustment	—		—		(198,000		)	(198,000		)
Balance, December 31, 2018	$	2,500	$	372,103	$	4,562,453		$	4,937,056

See accompanying notes.

The Western and Southern Life Insurance Company

Statements of Cash Flow (Statutory-Basis)



	Year Ended December 31
	2018			2017			2016
	(In Thousands)
Operating activities
Premiums collected net of reinsurance	$	239,541		$	249,358		$	253,220
Net investment income received	412,553			509,990			289,537
Benefits paid	(334,477		)	(387,279		)	(376,867		)
Net transfers from (to) separate accounts	49,504			101,916			69,392
Commissions and expense paid	(89,719		)	(77,257		)	(96,818		)
Dividends paid to policyholders	(52,582		)	(55,732		)	(56,917		)
Federal income taxes recovered (paid)	(32,434		)	(52,260		)	(42,867		)
Other, net	1,032			1,010			3,257
Net cash from (for) operations	193,418			289,746			41,937

Investing activities
Proceeds from investments sold, matured or repaid:
Debt securities	2,285,224			782,780			825,252
Preferred and common stocks	1,152,289			481,055			546,227
Mortgage loans	11,323			15,501			920
Real estate	—			476			473
Other invested assets	337,964			245,518			153,463
Net gains (losses) on cash, cash equivalents and short-term investments	90			(23		)	45
Miscellaneous proceeds	8,357			19,962			47,582
Net proceeds from investments sold, matured or repaid	3,795,247			1,545,269			1,573,962

Cost of investments acquired:
Debt securities	(1,660,008		)	(885,797		)	(690,324		)
Preferred and common stocks	(2,047,721		)	(575,188		)	(544,379		)
Mortgage loans	(21,240		)	(7,076		)	(17,569		)
Real estate	(678		)	(791		)	(1,139		)
Other invested assets	(265,138		)	(315,724		)	(290,787		)
Miscellaneous applications	(15,608		)	(44,456		)	(968		)
Total cost of investments acquired	(4,010,393		)	(1,829,032		)	(1,545,166		)

Net change in policy and other loans	3,483			2,298			1,577
Net cash from (for) investments	(211,663		)	(281,465		)	30,373

Financing activities
Capital and paid in surplus, less treasury stock	261,500			57,100			—
Net deposits on deposit-type contract funds and other insurance liabilities	(11,020		)	(6,033		)	(6,494		)
Other cash provided (applied)	(375,272		)	22,907			(68,171		)
Net cash from (for) financing and miscellaneous sources	(124,792		)	73,974			(74,665		)

Net change in cash, cash equivalents and short-term investments	(143,037		)	82,255			(2,355		)
Cash, cash equivalents and short-term investments:
Beginning of year	230,950			148,695			151,050
End of year	$	87,913		$	230,950		$	148,695

Cash flow information for noncash transactions
Contribution to Integrity Life Insurance Company in the form of common stock	$	(245,700	)	$	—		$	—

See accompanying notes.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

1. Nature of Operations and Significant Accounting Policies

The Western and Southern Life Insurance Company (the Company) is a stock life insurance company that offers primarily individual traditional and whole life insurance policies. The Company is licensed in 46 states and the District of Columbia. For the year ended December 31, 2018, approximately 68.5% of the gross premiums and annuity considerations for the Company were derived from California, Illinois, Indiana, North Carolina, and Ohio. The Company is domiciled in Ohio. The Company is an indirect, wholly-owned subsidiary of Western & Southern Mutual Holding Company (Mutual Holding), a mutual holding company formed pursuant to the insurance regulations of the State of Ohio. Ohio law requires Mutual Holding to hold at least a majority voting interest in the Company. Currently, Mutual Holding indirectly holds 100% of the voting interest through Western & Southern Financial Group, Inc. (WSFG), its wholly-owned subsidiary. The Company wholly owns the following insurance entities: Western-Southern Life Assurance Company (WSLAC), Columbus Life Insurance Company (Columbus Life), Integrity Life Insurance Company (Integrity) and Gerber Life Insurance Company (Gerber Life). Integrity Life Insurance Company wholly owns National Integrity Life Insurance Company (National).

Gerber Life was acquired as a statutory purchase on December 31, 2018. The transaction is discussed in further detail in the Business Combinations section of this footnote.

Included within the financial statements, the Company has established and operates a closed block for the benefit of holders of most participating individual ordinary and weekly industrial life insurance policies issued on or before the formation of Mutual Holding in 2000 (the Closed Block). Assets have been allocated to the Closed Block in an amount that is expected to produce cash flows which, together with anticipated revenue from the policies included in the Closed Block, are reasonably expected to be sufficient to support the Closed Block policies, the continuation of policyholder dividends, in aggregate, in accordance with the 2000 dividend scale if the experience underlying such scale continues, and for appropriate adjustments in the dividend scale if the experience changes. Invested assets allocated to the Closed Block consist primarily of high-quality debt securities, mortgage loans, policy loans, short-term investments, other invested assets, and securities lending reinvested collateral. Invested assets of $2,034.6 million and $2,080.1 million were allocated to the Closed Block as of December 31, 2018 and 2017, respectively. The assets allocated to the Closed Block inure solely for the benefit of the Closed Block policyholders and will not revert to the benefit of the Company. The purpose of the Closed Block is to protect the policy dividend expectations of these policies after the formation of Mutual Holding. The Closed Block will continue in effect until the last policy in the Closed Block is no longer in force.

Use of Estimates

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Basis of Presentation

Investments

Investments in debt securities and mandatory redeemable preferred stocks are reported at amortized cost or fair value based on the NAIC’s rating; for GAAP, such fixed maturity investments are designated at purchase as held-to-maturity, trading or available-for-sale. Held-to-maturity fixed investments are reported at amortized cost, and the remaining fixed maturity investments are reported at fair value with unrealized holding gains and losses reported in the statement of operations for those designated as trading and as a separate component of other comprehensive income (loss) for those designated as available-for-sale.


•	The extent and length of time the fair value has been below the book/adjusted carrying value;


•	The reasons for the decline in value;


•	Specific credit issues related to the issuer and current economic conditions, including the current and future impact of any specific events;

•

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016


•	For all equity securities and other debt securities with credit-related declines in fair value, the Company’s intent and ability to hold the security long enough for it to recover its value to book/adjusted carrying value; and


•	For all other debt securities with interest-related declines in fair value, the Company’s intent to sell the security before recovery of its book/adjusted carrying value.

Investments in real estate are reported net of required obligations rather than on a gross basis as for GAAP. Real estate owned and occupied by the Company is included in investments rather than reported as an operating asset as under GAAP, and investment income and operating expenses include rent for the Company’s occupancy of those properties.

Under a formula prescribed by the NAIC, the Company defers the portion of realized capital gains and losses on sales of fixed income investments, principally debt securities and mortgage loans, attributable to changes in the general level of interest rates and amortizes those deferrals over the remaining period to maturity based on groupings of individual security sold in five-year bands. The net deferral is reported as the interest maintenance reserve (IMR) in the accompanying balance sheets. Realized capital gains and losses are reported in income net of federal income tax and transfers to the IMR. Under GAAP, realized capital gains and losses are reported in the statement of operations on a pretax basis in the period that the assets giving rise to the gains or losses are sold.

Subsidiaries

The accounts and operations of the Company’s subsidiaries are not consolidated with the accounts and operations of the Company as would be required under GAAP.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Policy Acquisition Costs

Nonadmitted Assets

Certain assets designated as “nonadmitted” (principally investments in unaudited subsidiaries and controlled and affiliated entities, goodwill in excess of the admission limit, and a portion of deferred tax assets), and other assets not specifically identified as admitted assets within the NAIC’s Accounting Practices and Procedures Manual, are excluded from the accompanying balance sheets and are charged directly to accumulated surplus. Under GAAP, such assets are included in the balance sheets.

Premiums and Benefits

Benefit Reserves

Reinsurance

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Employee Benefits

For purposes of calculating the Company’s pension and postretirement benefit obligations, vested participants, non-vested participants and current retirees are included in the valuation. The prepaid pension asset resulting from the excess of the fair value of plan assets over the benefit obligation, which is nonadmitted under statutory accounting rules, is included in other comprehensive income under GAAP.

Deferred Income Taxes

Policyholder Dividends

Policyholder dividends are recognized when declared rather than over the term of the related policies.

Statements of Cash Flow

Other significant statutory accounting practices follow.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Restricted Assets

The Company has assets pledged as collateral, or otherwise not exclusively under control of the Company, totaling $136.8 million and $250.6 million as of December 31, 2018 and 2017, respectively. These assets are primarily collateral held in relation to the Company's securities lending program. These restricted assets are discussed in more detail in their relevant section.

Investments

Debt securities, common stocks, preferred stocks, and short-term investments are stated at values prescribed by the NAIC, as follows:

Debt securities not backed by other loans are principally stated at amortized cost using the interest method.

Unaffiliated common stocks are reported at fair value utilizing publicly quoted prices from third-party pricing services and the related unrealized capital gains and losses are reported in capital and surplus along with any adjustment for federal income taxes.

There are no restrictions on unaffiliated common or preferred stocks.

Short-term investments include investments with remaining maturities of one year or less at the date of acquisition and are principally stated at amortized cost, which approximates fair value.

Cash equivalents are short-term highly liquid investments with original maturities of three months or less and are principally stated at amortized cost, which approximates fair value.

The Company’s insurance subsidiaries are reported at their underlying audited statutory equity. The Company’s noninsurance subsidiaries are reported based on underlying audited GAAP equity. The net change in the subsidiaries’ equity is included in capital and surplus.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Policy loans are reported at unpaid principal balances.

Real estate occupied by the Company and real estate held for the production of income are reported at depreciated cost net of related obligations. Real estate that the Company has the intent to sell is reported at the lower of depreciated cost or fair value, net of related obligations. Depreciation is computed by the straight-line method over the estimated useful life of the properties.

Property acquired in the satisfaction of debt is recorded at the lower of cost less accumulated depreciation or fair market value.

Realized capital gains and losses are determined using the specific identification method.

Premiums

Policy Reserves

Life, annuity and accident and health disability benefit reserves are developed by actuarial methods and are determined based on published tables using statutorily specified interest rates and valuation methods that will provide, in the aggregate, reserves that are greater than or equal to the minimum or guaranteed policy cash values or the amounts required by the Department. The Company waives deduction of deferred fractional premiums on the death of life and annuity policy insureds and does return any premium beyond the date of death. Surrender values on policies do not exceed the corresponding benefit reserves. Policies issued subject to multiple table substandard extra premiums are valued on the standard reserve basis which recognizes the

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

nonlevel incidence of the excess mortality costs. Additional reserves are established when the results of cash flow testing under various interest rate scenarios indicate the need for such reserves, or the net premiums exceed the gross premiums on any insurance in-force.

Policy reserves for life insurance and supplemental benefits are computed on the Commissioner’s Reserve Valuation Method. The following mortality tables and interest rates are used:



	Percentage of Reserves
	2018		2017
Life insurance:
1941 Commissioners Standard Ordinary, 2-1/4% - 3-1/2%	7.8	%	8.3	%
1941 Standard Industrial, 2-1/2% - 3-1/2%	10.5		10.7
1958 Commissioners Standard Ordinary, 2-1/2% - 6%	19.7		20.6
1980 Commissioners Standard Ordinary, 4% - 6%	39.6		39.6
2001 Commissioners Standard Ordinary, 3-1/2% - 4-1/2%	16.4		14.5
2017 Commissioners Standard Ordinary, 3-1/2%	—		0.2
Other, 2-1/2% - 6%	4.6		4.7
	98.6	%	98.6	%
Other benefits (including annuities):
Various, 2-1/2% - 8-1/4%	1.4		1.4
	100.0	%	100.0	%

As of December 31, 2018 and 2017, reserves of $22.8 million and $22.8 million, respectively, were recorded on in-force amounts of $1,216.2 million and $1,217.7 million, respectively, for which gross premiums are less than the net premiums according to the standard of valuation required by the Department. The Company anticipates investment income as a factor in the premium deficiency calculation for all accident and health contracts.

Tabular interest, tabular less actual reserves released, and tabular cost have been determined by formula. Tabular interest on funds not involving life contingencies is calculated as one-hundredth of the product of such valuation rate of interest times the mean of the amount of funds subject to such valuation rate of interest held at the beginning and end of the year of valuation.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

reserves, it has been necessary, and may over time continue to be necessary, to revise estimated future liabilities as reflected in the Company’s policy reserves.

Policyholders’ Dividends

The amount of policyholders’ dividends to be paid (including those on policies included in the Closed Block) is determined annually by the Company’s Board of Directors. The aggregate amount of policyholders’ dividends is related to actual interest, mortality, morbidity and expense experience for the year and judgment as to the appropriate level of statutory surplus to be retained by the Company.

Policy and Contract Claims

Policy and contract claims in process of settlement represent the estimated ultimate net cost of all reported and unreported claims incurred through December 31, 2018 and 2017. The reserves for unpaid claims are estimated using individual case-basis valuations and statistical analysis. These 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 for claims 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.

Reinsurance

Reinsurance premiums and benefits paid or provided are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts.

Securities Lending

At December 31, 2018, the Company had loaned various debt securities, preferred stocks and common stocks as part of a securities lending program administered by Deutsche Bank, of which the fair value was $105.9 million and $21.8 million in the general and separate account, respectively. At December 31, 2017, the Company had loaned various debt securities, preferred stocks and common stocks as part of a securities lending program administered by Deutsche Bank, of which the fair value was $239.4 million and $9.1 million in the general and separate account, respectively. The Company maintains effective control over all loaned securities and, therefore, continues to report such securities as invested assets in the balance sheets. The general account collateral is managed by both an affiliated and unaffiliated agent. The separate account is managed by an unaffiliated agent.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

The Company reports all collateral on the balance sheet with an offsetting liability recognized for the obligation to return the collateral. Collateral for the securities lending program is either managed by an affiliated agent of the Company or is managed by Deutsche Bank, an unaffiliated agent. Collateral managed by an affiliated agent, which approximated $54.3 million and $182.7 million at December 31, 2018 and 2017, respectively, is invested primarily in investment-grade debt securities and cash equivalents and is included in the applicable amount on the balance sheets because the funds are available for the general use of the Company. At December 31, 2018 and 2017, collateral managed by an unaffiliated agent, which approximated $54.2 million and $62.1 million respectively, was invested in cash equivalents and was included in securities lending reinvested collateral assets on the balance sheet.

At December 31, 2018, the collateral for all securities on loan could be requested to be returned on demand by the borrower. At December 31, 2018 and 2017, the fair value of the total collateral in the general account was $108.5 million and $244.8 million, respectively. The fair value of the total collateral in the separate account was $22.4 million and $9.3 million at December 31, 2018 and 2017, respectively, which was all managed by an unaffiliated agent.

The aggregate collateral broken out by maturity date is as follows at December 31, 2018:



	Amortized Cost		Fair Value
	(In Thousands)
Open	$	—	$	—
30 days or less	99,920		99,926
31 to 60 days	464		464
61 to 90 days	4,639		4,637
91 to 120 days	—		—
121 to 180 days	1,100		1,100
181 to 365 days	7,862		7,855
1 to 2 years	2,650		2,631
2 to 3 years	—		—
Greater than 3 years	14,299		14,299
Total collateral	$	130,934	$	130,912

At December 31, 2018, all of the collateral held for the securities lending program was invested in tradable securities that could be sold and used to pay for the $108.8 million and $22.4 million in the general and separate accounts, respectively, in collateral calls that could come due under a worst-case scenario where all collateral was called simultaneously.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Separate Account

The Company maintains a separate account, which holds all of the Company’s pension plan assets. The assets of the separate account consist primarily of marketable securities, which are recorded at fair value. These assets are considered legally insulated from the general accounts.

There are no separate account liabilities that are guaranteed by the general account. (See Note 10 for further discussion on the general account’s responsibility as it relates to the obligations of the Company’s pension plan).

The activity within the separate account, including realized and unrealized gains or losses on its investments, has no effect on net income or capital and surplus of the Company. The Company’s statements of operations reflect annuity payments to pension plan participants and other expenses of the separate account, as well as the reimbursement of such expenses from the separate account.

Federal Income Taxes

The Company files a consolidated income tax return with its eligible subsidiaries and affiliates. The provision for federal income taxes is allocated to the individual companies using a separate return method based upon a written tax-sharing agreement. Under the agreement, the benefits from losses of subsidiaries and affiliates are retained by the subsidiary and affiliated companies. The Company pays all federal income taxes due for all members of the group. The Company then immediately charges or reimburses, as the case may be, the members of the group an amount consistent with the method described in the tax-sharing agreement.

The Company includes interest and penalties in the federal income tax line on the statements of operations.

Postretirement Benefits Other Than Pensions

The Company accounts for its postretirement benefits other than pensions on an accrual basis. The postretirement benefit obligation for current retirees and fully eligible employees is measured by estimating the actuarial present value of benefits expected to be received at retirement using explicit assumptions.

Actuarial and investment gains and losses arising from differences between assumptions and actual experience upon subsequent remeasurement of the obligation may be recognized as a component of the net periodic benefit cost in the current period or amortized. The net gain or loss will be included as a component of net postretirement benefit cost for a year if, as of the beginning of the year, the unrecognized net gain or loss exceeds 10% of the postretirement benefit obligation. That gain or loss, if not recognized immediately, will be amortized over the average life expectancy of the employer’s fully vested and retiree group.

Accounting Changes

Effective January 1, 2018, the Company updated mortality assumptions on certain traditional life reserves. This resulted in a change of statutory reserve valuation that is required to be recorded directly to surplus rather than as part of the reserve change recognized in the statements of operations. As a result, the Company has recorded a $0.7 million decrease to surplus as a result of the change in valuation bases through the change in reserve on account of change in valuation basis line on the statements of changes in capital and surplus.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

During 2016, the Company determined that its reserves related to certain classes of traditional life policies were understated due to an error in the calculation of premium mode factors. This resulted in a change of the aggregate reserve for traditional contracts that is required to be recorded directly to surplus rather than as a part of the reserve change recognized in the statements of operations. As a result, effective January 1, 2016, the Company has recorded a $4.7 million decrease directly to surplus through the correction of traditional life reserves line on the statements of changes in capital and surplus.

Business Combinations

On December 31, 2018, the Company purchased 100% of the common stock of Gerber Life from Nestlé S.A. ("Nestlé") for an aggregate purchase price of $1,565.5 million, including direct acquisition costs of $9.3 million. Included in the aggregate purchase price is a a long-term license to use Gerber Life intellectual property in connection with financial services. Gerber Life is an insurer that operates primarily in the juvenile life insurance and medical stop-loss insurance markets. Gerber Life is New York-domiciled and is licensed in 50 states, the District of Columbia, Puerto Rico and certain Canadian provinces.

The transaction was accounted for as a statutory purchase and reflects the following:



Year	Cost of acquired entity		Original Admitted Goodwill		Admitted Goodwill at Reporting Date		Goodwill Amortized in Period		Admitted Goodwill as a % of Admitted Acquisition
	(In thousands)
2018	$	1,265,517	$	528,082	$	528,082	$	—	62.9	%

Simultaneously to, and in contemplation of, the purchase of Gerber Life, the Company paid for a long-term license to use Gerber Life intellectual property in connection with financial services. The stated purchase price in the trademark license agreement was $300.0 million. The fair value of the trademark license agreement in isolation was determined to be $102.0 million; as a result, the book value of the asset was reduced by $198.0 million through surplus in the line titled trademark license agreement adjustment on the statements of changes in capital and surplus. The adjustment to the book value of the trademark license agreement had no impact on the Company's total capital and surplus, as the trademark license agreement asset is non-admitted and the change to the book value was offset by a change in the associated non-admitted asset.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Subsequent Events

The Company issued surplus notes ("the Notes"), on January 23, 2019 with an aggregate principal amount of $500.0 million, an annual interest rate of 5.15%, and a maturity date of January 15, 2049 in exchange for $497.4 million in cash. Interest on the Notes is paid semi-annually on January 15 and July 15 of each year. The Notes were issued pursuant to Rule 144A as defined by the Securities Act of 1933 and is administered by the Bank of New York Mellon. The Notes are unsecured and subordinated to all present and future indebtedness, policy claims and “prior claims” (those claims referred to in classes 1 through 7 of Section 3903.42 of the Ohio Revised Code) against the Company. Under Ohio insurance laws, the Notes are not part of the legal liabilities of the Company. Each payment of principal of, interest on or redemption price with respect to the Notes, may be made only with the prior approval of the Ohio Director of Insurance (the “Director”), and only out of surplus earnings. Subject to the approval of the Director, the Company has the option to redeem the Notes (i) in whole within 90 days after the occurrence of a “Tax Event” where the Company receives an opinion of tax counsel that there is a more than insubstantial risk that interest payable on the Notes is not deductible by the Company, at a redemption price equal to the principal amount of the Notes to be redeemed (the ‘‘Par Value Redemption Price’’), (ii) in whole or in part, on or after January 23, 2024 but prior to July 15, 2048, at a redemption price equal to the greater of (a) the Par Value Redemption Price or (b) the sum of the present value of the remaining scheduled principal and interest payments on the Notes from the redemption date to July 15, 2048, discounted to the redemption date on a semi-annual basis at an adjusted treasury rate plus 35 basis points or (iii) in whole or in part, on or after July 15, 2048, at the Par Value Redemption Price, plus, in each case of (i), (ii) and (iii), accrued and unpaid interest payments on the Notes to be redeemed to the redemption date. In the event the Company was subject to a liquidation event, the Notes would have preference over the common shareholders. No affiliates of the Company hold any of the Notes. As of the closing, Guggenheim Partners was the only holder of more than 10% of the outstanding Notes on record at the Depository Trust Company.

The Company issued a short-term loan to its parent, WSFG, as of January 23, 2019, for $260.0 million. This note had a maturity date of March 24, 2019 and bore interest at a rate of 2.68%, compounding monthly. The principal of the loan was forgiven by the Company as of March 7, 2019. This was accounted for as a dividend from the Company to WSFG. The accrued interest of $0.8 million was paid by WSFG to the Company on March 7, 2019.

The Company paid a $100.0 million capital contribution to Gerber Life in February 2019. The contribution was in the form of $99.8 million in bonds and $0.2 million in cash.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

2. Investments

The book/adjusted carrying value and fair value of the Company’s investments in debt securities are summarized as follows:



	Book/ Adjusted Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In Thousands)
At December 31, 2018:
U.S. Treasury securities and obligations of U.S. government corporation and agencies	$	27,656	$	882	$	(196	)	$	28,342
Debt securities issued by states of the U.S. and political subdivisions of the states	15,030		1,680		(47		)	16,663
Corporate securities	2,507,103		214,258		(67,639		)	2,653,722
Commercial mortgage-backed securities	53,343		273		(466		)	53,150
Residential mortgage-backed securities	240,395		8,933		(1,692		)	247,636
Asset-backed securities	93,924		3,527		(907		)	96,544
Total	$	2,937,451	$	229,553	$	(70,947	)	$	3,096,057

At December 31, 2017:
U.S. Treasury securities and obligations of U.S. government corporation and agencies	$	59,769	$	1,132	$	(31	)	$	60,870
Debt securities issued by states of the U.S. and political subdivisions of the states	24,346		1,752		—			26,098
Corporate securities	2,885,960		420,349		(2,462		)	3,303,847
Commercial mortgage-backed securities	77,580		1,297		(155		)	78,722
Residential mortgage-backed securities	298,786		15,654		(1,013		)	313,427
Asset-backed securities	198,015		10,909		(156		)	208,768
Total	$	3,544,456	$	451,093	$	(3,817	)	$	3,991,732

At December 31, 2018 and 2017, the Company held unrated or below-investment-grade corporate debt securities with a book/adjusted carrying value of $72.0 million and $277.7 million, respectively, and an aggregate fair value of $69.1 million and $294.8 million, respectively. As of December 31, 2018 and 2017, such holdings amounted to 2.5% and 7.8%, respectively, of the Company’s investments in debt securities and 0.7% and 2.6%, respectively, of the Company’s total admitted assets. The Company performs periodic evaluations of the relative credit standing of the issuers of these debt securities. The Company considers these evaluations in its overall investment strategy.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Unrealized gains and losses on investments in unaffiliated common stocks, mutual funds and common stocks of subsidiaries are reported directly in capital and surplus and do not affect net income. The unrealized gains and unrealized losses on, and the cost and fair value of those investments and preferred stocks are as follows:



	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In Thousands)
At December 31, 2018:
Preferred stocks	$	16,026	$	334	$	(668	)	$	15,692

Common stocks, unaffiliated	$	446,459	$	146,776	$	(38,660	)	$	554,575
Common stocks, mutual funds	155,207		37		(8,241		)	147,003
Common stocks, subsidiaries	2,840,458		418,024		(65,344		)	3,193,138
	$	3,442,124	$	564,837	$	(112,245	)	$	3,894,716



	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In Thousands)
At December 31, 2017:
Preferred stocks	$	40,828	$	5,411	$	(149	)	$	46,090

Common stocks, unaffiliated	$	909,254	$	392,884	$	(6,153	)	$	1,295,985
Common stocks, mutual funds	125,604		10,008		(473		)	135,139
Common stocks, subsidiaries	1,715,649		453,273		(18,161		)	2,150,761
	$	2,750,507	$	856,165	$	(24,787	)	$	3,581,885

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

The following table shows unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.



	Unrealized Losses Less Than 12 Months					Unrealized Losses Greater Than or Equal to 12 Months
	Unrealized Losses			Fair Value		Unrealized Losses			Fair Value
	(In Thousands)
At December 31, 2018:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	(122	)	$	5,372	$	(74	)	$	7,344
Debt securities issued by states of the U.S. and political subdivisions of the states	(47		)	5,193		—			—
Corporate securities	(61,597		)	910,784		(6,042		)	58,244
Commercial mortgage-backed securities⁽¹⁾	(185		)	18,196		(281		)	17,121
Residential mortgage-backed securities⁽¹⁾	(858		)	56,185		(834		)	36,871
Asset-backed securities⁽¹⁾	(858		)	39,938		(49		)	1,804
Total	$	(63,667	)	$	1,035,668	$	(7,280	)	$	121,384

Preferred stocks	$	(668	)	$	5,146	$	—		$	—

Common stocks, unaffiliated	$	(38,660	)	$	169,629	$	—		$	—
Common stocks, mutual funds	(8,241		)	114,637		—			—
Total	$	(46,901	)	$	284,266	$	—		$	—

⁽¹⁾ Amounts relate to securities subject to SSAP 43R.



	Unrealized Losses Less Than 12 Months					Unrealized Losses Greater Than or Equal to 12 Months
	Unrealized Losses			Fair Value		Unrealized Losses			Fair Value
	(In Thousands)
At December 31, 2017:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	(29	)	$	6,897	$	(2	)	$	202
Debt securities issued by states of the U.S. and political subdivisions of the states	—			—		—			—
Corporate securities	(1,394		)	217,114		(1,068		)	27,719
Commercial mortgage-backed securities⁽¹⁾	(155		)	20,387		—			—
Residential mortgage-backed securities⁽¹⁾	(314		)	46,486		(699		)	28,076
Asset-backed securities⁽¹⁾	(30		)	20,530		(126		)	11,931
Total	$	(1,922	)	$	311,414	$	(1,895	)	$	67,928

Preferred stocks	$	(149	)	$	1,371	$	—		$	—

Common stocks, unaffiliated	$	(6,153	)	$	148,991	$	—		$	—
Common stocks, mutual funds	(473		)	16,642		—			—
Total	$	(6,626	)	$	165,633	$	—		$	—

⁽¹⁾ Amounts relate to securities subject to SSAP 43R.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

The aggregated unrealized loss is approximately 7.6% and 1.9% of the carrying value of securities considered temporarily impaired at December 31, 2018 and 2017, respectively. At December 31, 2018, there were a total of 421 securities held that are considered temporarily impaired, 36 of which have been impaired for 12 months or longer. At December 31, 2017, there were a total of 192 securities held that were considered temporarily impaired, 23 of which had been impaired for 12 months or longer. The Company recorded other-than-temporary impairments on securities of $19.1 million, $5.0 million and $21.5 million for the years ended December 31, 2018, 2017 and 2016, respectively.



CUSIP	Book/Adj Carrying Value Amortized Cost Before Current Period OTTI		Present Value of Future Cash Flows		Recognized Other- Than- Temporary Impairment		Amortized Cost After Other-Than-Temporary Impairment		Fair Value		Date of Other-Than-Temporary Impairment



(In Thousands)
For the year ended, December 31, 2018:
12667G-XD-0	$	1,920	$	1,896	$	24	$	1,896	$	1,870	06/30/2018
12668A-AL-9	2,849		2,842		7		2,842		2,779		06/30/2018
126694-JX-7	490		487		3		487		489		12/31/2018
Total	XXX		XXX		$	34	XXX		XXX

The Company had no OTTI on loan-backed securities for the year ended December 31, 2018, due to the intent to sell the security or the inability or lack of intent to retain the investment in the security for a period of time sufficient to recover the amortized cost basis of the security.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

A summary of the cost or amortized cost and fair value of the Company’s debt securities at December 31, 2018, by contractual maturity, is as follows:



	Book/Adjusted Carrying Value		Fair Value
	(In Thousands)
Years to maturity:
One or less	$	96,189	$	96,885
After one through five	184,217		190,406
After five through ten	459,939		498,121
After ten	1,809,444		1,913,315
Mortgage-backed securities/asset-backed securities	387,662		397,330
Total	$	2,937,451	$	3,096,057

Proceeds from sales of investments in debt securities during 2018, 2017 and 2016 were $1,385.4 million, $285.0 million, and $322.4 million; gross gains of $25.8 million, $9.2 million, and $10.3 million and gross losses of $6.0 million, $0.5 million, and $2.1 million were realized on these sales in 2018, 2017 and 2016, respectively.

Proceeds from the sales of investments in equity securities during 2018, 2017 and 2016 were $1,092.8 million, $439.0 million, and $518.2 million; gross gains of $230.8 million, $61.4 million, and $107.4 million and gross losses of $38.9 million, $43.7 million, and $34.8 million were realized on these sales in 2018, 2017 and 2016, respectively.

Realized capital gains (losses) are reported net of federal income taxes and amounts transferred to the IMR as follows for the years ended December 31:



	2018		2017		2016
	(In Thousands)
Realized capital gains (losses)	$	282,807	$	11,982	$	28,756
Less amount transferred to IMR (net of related taxes (benefits) of $3,425 in 2018, $2,211 in 2017, and $4,493 in 2016)	12,886		4,106		8,344
Less federal income tax expense (benefit) of realized capital gains (losses)	64,841		5,319		18,724
Net realized capital gains (losses)	$	205,080	$	2,557	$	1,688

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Net investment income was generated from the following for the years ended December 31:



	2018		2017		2016
	(In Thousands)
Debt securities	$	182,497	$	178,001	$	186,531
Equity securities	44,065		254,309		42,688
Mortgage loans	1,963		3,854		3,973
Real estate	13,071		13,150		13,401
Policy loans	11,965		12,224		12,206
Cash, cash equivalents and short-term investments	4,967		1,265		631
Other invested assets	229,089		96,300		80,561
Other	1,361		1,465		1,227
Gross investment income	488,978		560,568		341,218
Investment expenses	22,757		21,404		19,053
Net investment income	$	466,221	$	539,164	$	322,165

The Company’s investments in mortgage loans principally involve commercial real estate. At December 31, 2018, 89.2% of such mortgages, or $52.8 million, involved properties located in Arizona, Washington, and South Carolina. Such investments consist of primarily first-mortgage liens on completed income-producing properties. The aggregate mortgage outstanding to any one borrower does not exceed $22.0 million. During 2018, the respective minimum and maximum lending rates for mortgage loans issued were 4.21% and 4.21%. At the issuance of a loan, the percentage of any one loan to value of security, exclusive of insured, guaranteed or purchase money mortgage did not exceed 80.0%. During 2018, the Company did not reduce interest rates on any outstanding mortgages.

Derivative Instruments

The Company entered into an equity hedge program designed to hedge the market value risks associated with the broad equity market in third and fourth quarter of 2018. The Company recognized changes in the fair value of these options through surplus and recognized gains and losses through net income from terminations, maturities or expirations through realized capital gains and losses. The realized gain recognized for the current period was $81.3 million and the program was closed in the fourth quarter of 2018.

3. Fair Values of Financial Instruments

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

liabilities carried at fair value have been classified, for disclosure purposes, based on the following hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three levels. The Company’s policy is to recognize transfers in and transfers out of levels at the beginning of the quarterly reporting period.


•	Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities. The Company’s Level 1 assets and liabilities primarily include exchange-traded equity securities and mutual funds, including those which are part of the Company’s separate account assets.

•

Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. The Company’s Level 2 assets and liabilities primarily include debt securities within the Company’s separate account for which public quotations are not available, but that are priced by third-party pricing services or internal models using observable inputs. Also included in Level 2 assets and liabilities are NAIC 4 rated preferred stock, NAIC 6 rated preferred stock, and stock warrants. The fair value of these instruments is determined through the use of third-party pricing services or models utilizing market observable inputs.

•

Level 3 - Significant unobservable inputs for the asset or liability. The Company’s Level 3 assets and liabilities primarily include certain debt securities and private equity securities within the Company’s separate account that must be priced using non-binding broker quotes or other valuation techniques that utilize significant unobservable inputs. Also included in Level 3 assets and liabilities are preferred and common stocks being priced by utilizing recent financing for similar securities.

Certain investments utilize net asset value (NAV) as a practical expedient for fair value. These investments are reported separately from the hierarchy. Investments utilizing NAV consist mainly of equity interest in limited partnerships and limited liabilities in the separate account. These investments contain fixed income, common stock, and real estate characteristics. The interests in these partnerships are restricted and cannot be sold without consent from the general partner. The average remaining life of the investments is 21.7 years. The Company's unfunded commitment for these investments is $15.9 million. In addition, a collective trust in the separate account utilizing NAV is primarily investing in domestic fixed income securities. Shares in the trust can be redeemed at their net asset value. The NAV for this investment is $9.97. The Company does not intend to sell any investments utilizing NAV.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

environment, analysis of asset class-specific valuation methodologies and understanding of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. Care should be exercised in deriving conclusions about the Company’s business, its value or financial position based on the fair value information of financial instruments presented below. The following discussion describes the valuation methodologies utilized by the Company for assets and liabilities measured or disclosed at fair value.

Debt and Equity Securities

The fair values of actively traded equity securities and exchange traded funds (including exchange traded funds with debt like characteristics) have been determined utilizing publicly quoted prices obtained from third-party pricing services. The fair values of certain equity securities for which no publicly quoted prices are available have been determined through the use of third-party pricing services utilizing market observable inputs. Actively traded mutual funds are valued using the net asset values of the funds. The fair value of equity securities included in Level 3 has been determined by utilizing recent financing for similar securities.

Mortgage Loans

Cash, Cash Equivalents and Short-Term Investments

The fair values of cash, cash equivalents and short-term investments are based on quoted market prices or stated amounts.

Securities Lending Reinvested Collateral Assets

The fair values of securities lending reinvested collateral assets are determined through the use of third-party sources utilizing publicly quoted prices.

Other Invested Assets

Other invested assets primarily include surplus debentures for which fair values have been determined through the use of third-party pricing services utilizing market observable inputs.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Assets Held in Separate Accounts

Assets held in separate accounts include debt securities, equity securities, mutual funds, private equity, and private debt fund investments. The fair values of debt securities, equity securities and mutual funds have been determined using the same methodologies as similar assets held in the general account. The fair values of private equity and private debt fund investments have been determined utilizing the net asset values of the funds.

Life and Annuity Reserves for Investment-Type Contracts and Deposit Fund Liabilities

Securities Lending Liability

Assets and liabilities measured at fair value on a recurring basis are outlined below:



	Assets/ (Liabilities) Measured at		Fair Value Hierarchy Level
	Fair Value		Level 1		Level 2		Level 3		NAV
	(In Thousands)
At December 31, 2018
Assets:
Bonds, exchange traded funds	$	4,889	$	4,889	$	—	$	—	$	—
Common stocks, unaffiliated	554,575		551,875		—		—		2,700
Common stocks, mutual funds	147,003		147,003		—		—		—
Preferred stocks	866		—		573		293		—
Separate account assets	961,136		561,325		128,292		18,656		252,863
Total assets	$	1,668,469	$	1,265,092	$	128,865	$	18,949	$	255,563

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016



	Assets/ (Liabilities) Measured at		Fair Value Hierarchy Level
	Fair Value		Level 1		Level 2		Level 3
	(In Thousands)
At December 31, 2017
Assets:
Bonds, exchange traded funds	$	5,479	$	5,479	$	—	$	—
Common stocks, unaffiliated	1,295,985		1,291,083		—		4,902
Common stocks, mutual funds	135,139		135,139		—		—
Preferred stocks	782		—		782		—
Separate account assets	1,005,694		653,578		273,519		78,597
Total assets	$	2,443,079	$	2,085,279	$	274,301	$	83,499

There were no transfers between Level 1 and Level 2 of the fair value hierarchy.

The reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2018 are as follows:



	Beginning Asset/ (Liability) as of January 1, 2018		Total Realized/Unrealized Gains (Losses) Included in*:								Purchases, Sales, Issuances and Settlements			Transfers Into Level 3**		Transfers Out of Level 3***			Ending Asset/ (Liability) as of December 31, 2018
	Beginning Asset/ (Liability) as of January 1, 2018		Net Income			Surplus			Other		Purchases, Sales, Issuances and Settlements			Transfers Into Level 3**		Transfers Out of Level 3***			Ending Asset/ (Liability) as of December 31, 2018
	(In Thousands)
Assets:
Common stocks, unaffiliated	$	4,902	$	(4,389	)	$	(3	)	$	—	$	—		$	—	$	(510	)	$	—
Preferred stocks	—		—			(55		)	—		—			348		—			293
Separate account assets	78,597		—			—			1,421		(1,147		)	1,757		(61,972		)	18,656
Total assets	$	83,499	$	(4,389	)	$	(58	)	$	1,421	$	(1,147	)	$	2,105	$	(62,482	)	$	18,949

* Gains and losses for assets held in separate accounts do not impact net income or surplus as the change in value of assets held in separate accounts is offset by a change in value of liabilities related to separate accounts.


**	Transfers into Level 3 are due to changes in the price source.


***	Transfers out of Level 3 are due to utilizing net asset value.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016



	Purchases		Issuances		Sales		Settlements			Net Purchases, Issuances, Sales and Settlements
	(In Thousands)
Assets:
Common stocks, unaffiliated	$	—	$	—	$	—	$	—		$	—
Preferred stocks	—		—		—		—			—
Separate account assets	—		—		—		(1,147		)	(1,147		)
Total assets	$	—	$	—	$	—	$	(1,147	)	$	(1,147	)

The reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2017, is as follows:



	Beginning Asset/ (Liability) as of January 1, 2017		Total Realized/Unrealized Gains (Losses) Included in*:						Purchases, Sales, Issuances and Settlements		Transfers Into Level 3		Transfers Out of Level 3		Ending Asset/ (Liability) as of December 31, 2017
	Beginning Asset/ (Liability) as of January 1, 2017		Net Income		Surplus		Other		Purchases, Sales, Issuances and Settlements		Transfers Into Level 3		Transfers Out of Level 3		Ending Asset/ (Liability) as of December 31, 2017
	(In Thousands)
Assets:
Common stocks, unaffiliated	$	—	$	—	$	3	$	—	$	4,899	$	—	$	—	$	4,902
Separate account assets	76,783		—		—		1,745		69		—		—		78,597
Total assets	$	76,783	$	—	$	3	$	1,745	$	4,968	$	—	$	—	$	83,499



	Purchases		Issuances		Sales		Settlements			Net Purchases, Issuances, Sales and Settlements
	(In Thousands)
Assets:
Common stocks, unaffiliated	$	4,899	$	—	$	—	$	—		$	4,899
Separate account assets	24,126		—		—		(24,057		)	69
Total Assets	$	29,025	$	—	$	—	$	(24,057	)	$	4,968

The Company did not have any significant assets or liabilities measured at fair value on a nonrecurring basis as of December 31, 2018 and 2017.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

The carrying amounts and fair values of the Company’s significant financial instruments follow:



	December 31, 2018
	Carrying Amount			Fair Value			Level 1		Level 2			Level 3			NAV
	(In Thousands)
Assets:
Bonds	$	2,937,451		$	3,096,057		$	21,632	$	3,071,925		$	2,500		$	—
Common stock:
Unaffiliated	554,575			554,575			551,875		—			—			2,700
Mutual funds	147,003			147,003			147,003		—			—			—
Preferred stock	15,845			15,692			—		14,182			1,510			—
Mortgage loans	59,146			58,652			—		—			58,652			—
Cash, cash equivalents and short-term investments	87,913			87,919			87,919		—			—			—
Other invested assets, surplus notes	33,974			37,988			—		37,988			—			—
Securities lending reinvested collateral assets	54,253			54,253			54,253		—			—			—
Separate account assets	961,136			961,136			561,325		128,292			18,656			252,863

Liabilities:
Life and annuity reserves for investment-type contracts and deposit fund liabilities	$	(4,469	)	$	(4,419	)	$	—	$	—		$	(4,419	)	$	—
Securities lending liability	(108,841		)	(108,841		)	—		(108,841		)	—			—



	December 31, 2017
	Carrying Amount			Fair Value			Level 1		Level 2			Level 3
	(In Thousands)
Assets:
Bonds	$	3,544,456		$	3,991,732		$	46,728	$	3,926,941		$	18,063
Common stock:
Unaffiliated	1,295,985			1,295,985			1,291,083		—			4,902
Mutual funds	135,139			135,139			135,139		—			—
Preferred stock	40,700			46,090			—		45,427			663
Mortgage loans	49,229			49,377			—		—			49,377
Cash, cash equivalents and short-term investments	230,950			230,963			230,963		—			—
Other invested assets, surplus notes	36,055			44,676			—		44,676			—
Securities lending reinvested collateral assets	62,048			62,048			62,048		—			—
Separate account assets	1,005,694			1,005,694			653,578		273,519			78,597

Liabilities:
Life and annuity reserves for investment-type contracts and deposit fund liabilities	$	(4,465	)	$	(4,715	)	$	—	$	—		$	(4,715	)
Securities lending liability	(245,503		)	(245,503		)	—		(245,503		)	—

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

4. Related-Party Transactions

The Company owns a 100% interest in Integrity and WSLAC, whose carrying values based on underlying statutory equity at December 31, 2018, are $1.1 billion and $0.9 billion, respectively. The accounting policies of Integrity and WSLAC are the same as those of the Company described in Note 1. The summary financial data for Integrity and WSLAC follows:

Integrity Balance Sheets (Statutory-Basis)



	December 31
	2018		2017
	(In Thousands)
Admitted assets
Cash and invested assets:
Debt securities	$	5,321,133	$	5,059,296
Preferred and common stocks	412,121		269,143
Investment in common stock of subsidiary	339,005		315,929
Mortgage loans	571,159		455,805
Policy loans	107,926		107,728
Derivatives	61,463		121,934
Cash, cash equivalents and short-term investments	82,756		108,565
Receivable for securities	4,394		3,752
Securities lending reinvested collateral assets	782		5,347
Other invested assets	203,200		205,932
Total cash and invested assets	7,103,939		6,653,431

Investment income due and accrued	50,749		46,276
Current federal income taxes recoverable from parent	6,675		—
Net deferred income tax asset	8,332		12,855
Amounts receivable on reinsurance contracts	53		18,745
Other admitted assets	2,941		2,400
Separate account assets	2,242,401		2,476,506
Total admitted assets	$	9,415,090	$	9,210,213

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Integrity Balance Sheets (Statutory-Basis)



	December 31
	2018			2017
	(In Thousands)
Liabilities and capital and surplus
Liabilities:
Policy and contract liabilities:
Life and annuity reserves	$	4,748,936		$	4,456,632
Liability for deposit-type contracts	989,440			950,011
Policy and contract claims	216			191
Total policy and contract liabilities	5,738,592			5,406,834

General expense due and accrued	196			203
Current federal income taxes payable to parent	—			191
Transfer to separate accounts due and accrued, net	(43,649		)	(4,562		)
Asset valuation reserve	100,073			105,941
Interest maintenance reserve	10,536			12,447
Amounts payable on reinsurance contracts	79			17,313
Other liabilities	80,892			124,439
Derivatives	2,887			16,889
Payable for securities lending	151,816			178,253
Separate account liabilities	2,242,401			2,476,506
Total liabilities	8,283,823			8,334,454

Capital and surplus:
Common stock, $2 par value, authorized 1,500 shares, issued and outstanding 1,500 shares	3,000			3,000
Paid-in surplus	908,164			658,164
Accumulated surplus	220,103			214,595
Total capital and surplus	1,131,267			875,759
Total liabilities and capital and surplus	$	9,415,090		$	9,210,213

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

Integrity Statements of Operations (Statutory-Basis)



	Year Ended December 31
	2018			2017			2016
	(In Thousands)
Premiums and other revenues:
Premiums and annuity considerations	$	660,978		$	845,693		$	1,201,816
Net investment income	259,562			263,386			232,326
Considerations for supplementary contracts with life contingencies	7,065			9,563			10,302
Amortization of the interest maintenance reserve	1,677			1,616			1,966
Reserve adjustments on reinsurance ceded	(737,869		)	(72,074		)	(72,484		)
Fees from management of separate accounts	17,233			15,799			13,689
Miscellaneous income - termination of reinsurance agreement	694,579			—			—
Other revenues	4,782			4,051			4,287
Total premiums and other revenues	908,007			1,068,034			1,391,902

Benefits paid or provided:
Death benefits	10,415			9,320			4,710
Annuity benefits	254,002			210,110			184,420
Surrender benefits	426,558			331,983			330,556
Payments on supplementary contracts with life contingencies	8,137			6,092			5,174
Increase (decrease) in policy reserves and other policyholders’ funds	319,453			535,960			799,407
Total benefits paid or provided	1,018,565			1,093,465			1,324,267

Insurance expenses and other deductions:
Commissions	36,971			45,335			65,320
Commissions and expenses on reinsurance assumed	13			15			13
General expenses	47,795			47,215			38,856
Net transfers to (from) separate accounts	(246,141		)	(160,626		)	(149,118		)
Other deductions	6,730			4,160			2,481
Total insurance expenses and other deductions	(154,632		)	(63,901		)	(42,448		)

Gain (loss) from operations before federal income tax expense and net realized capital gains (losses)	44,074			38,470			110,083
Federal income tax expense (benefit), excluding tax on capital gains	11,369			(6,524		)	19,757
Gain (loss) from operations before net realized capital gains (losses)	32,705			44,994			90,326
Net realized capital gains (losses) (excluding gains (losses) transferred to IMR and capital gains tax)	26,516			(23,876		)	25,581
Net income (loss)	59,221			21,118			115,907

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

WSLAC Balance Sheets (Statutory-Basis)



	December 31
	2018		2017
	(In Thousands)
Admitted assets
Cash and invested assets:
Debt securities	$	10,700,371	$	9,756,707
Preferred and common stocks	267,156		369,415
Investment in common stock of subsidiaries	1,556		1,673
Mortgage loans	1,235,407		881,409
Policy loans	31,547		33,331
Cash, cash equivalents and short-term investments	278,601		289,040
Receivable for securities	2,756		9,931
Derivatives	356		728
Securities lending reinvested collateral assets	8,959		17,839
Other invested assets	270,156		246,427
Total cash and invested assets	12,796,865		11,606,500

Investment income due and accrued	90,447		83,163
Premiums deferred and uncollected	20,828		21,332
Net deferred income tax asset	42,087		36,736
Funds withheld under coinsurance agreement	—		621,100
Other admitted assets	11,669		12,439
Separate account assets	67,517		71,185
Total admitted assets	$	13,029,413	$	12,452,455

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

WSLAC Balance Sheets (Statutory-Basis)



	December 31
	2018		2017
	(In Thousands)
Liabilities and capital and surplus
Liabilities:
Policy and contract liabilities:
Life and annuity reserves	$	10,022,786	$	9,525,192
Liability for deposit-type contracts	1,451,157		1,233,366
Policy and contract claims	13,713		25,452
Premiums received in advance	376		353
Total policy and contract liabilities	11,488,032		10,784,363

General expense due and accrued	4		785
Current federal income taxes payable to parent	12,361		9,226
Transfer to (from) separate accounts due and accrued, net	430		380
Asset valuation reserve	152,209		152,005
Other liabilities	36,479		78,422
Payable for securities lending	332,583		375,533
Separate account liabilities	67,517		71,185
Total liabilities	12,089,615		11,471,899

Capital and surplus:
Common stock, $1 par value, authorized 10,000 shares, issued and outstanding 2,500 shares	2,500		2,500
Paid-in surplus	827,408		827,408
Accumulated surplus	109,890		150,648
Total capital and surplus	939,798		980,556
Total liabilities and capital and surplus	$	13,029,413	$	12,452,455

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

WSLAC Statements of Operations (Statutory-Basis)



	Year Ended December 31
	2018			2017			2016
	(In Thousands)
Premiums and other revenues:
Premiums and annuity considerations	$	1,420,102		$	1,177,883		$	612,121
Net investment income	493,546			462,646			480,104
Considerations for supplementary contracts with life contingencies	3,317			3,059			2,719
Amortization of the interest maintenance reserve	(1,707		)	(799		)	(586		)
Fees from management of separate accounts	881			804			279
Other revenues	(453		)	30,655			28,964
Total premiums and other revenues	1,915,686			1,674,248			1,123,601

Benefits paid or provided:
Death benefits	103,355			182,815			206,855
Annuity benefits	319,353			247,304			264,311
Disability and accident and health benefits	2,379			2,485			2,564
Surrender benefits	756,664			649,811			601,651
Payments on supplementary contracts with life contingencies	3,099			3,293			3,328
Other benefits	1,926			2,190			1,992
Increase (decrease) in policy reserves and other policyholders’ funds	532,871			249,003			(224,695		)
Total benefits paid or provided	1,719,647			1,336,901			856,006

Insurance expenses and other deductions:
Commissions	65,593			41,244			33,187
Commission and expense allowance on reinsurance assumed	—			2,142			2,251
General expenses	104,239			110,215			98,339
Net transfers to (from) separate accounts	(2,609		)	45,524			(3,605		)
Other deductions	12,223			7,570			3,792
Total insurance expenses and other deductions	179,446			206,695			133,964

Gain (loss) from operations before federal income tax expense and net realized capital gains (losses)	16,593			130,652			133,631
Federal income tax expense (benefit), excluding tax on capital gains	30,021			54,844			46,082
Gain (loss) from operations before net realized capital gains (losses)	(13,428		)	75,808			87,549
Net realized capital gains (losses) (excluding gains (losses) transferred to IMR and capital gains tax)	29,519			(5,987		)	(32,327		)
Net income (loss)	16,091			69,821			55,222

The Company has an equity interest in certain partnerships that made payments of principal and interest under mortgage financing arrangements to subsidiaries in the amount of $16.5 million, $3.7 million, and $1.0 million in 2018, 2017 and 2016, respectively. The principal balance of the mortgage financing arrangements with subsidiaries was $312.8 million and $82.0 million at December 31, 2018 and 2017, respectively.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

At December 31, 2018 and 2017, the Company had $107.4 million and $95.3 million, respectively, invested, in the Touchstone Funds, which are mutual funds administered by Touchstone Advisors, Inc., an indirect subsidiary of the Company.

The Company received a $260.0 million capital contribution from, WSFG in December 2018. The contribution was in the form of cash.

The Company paid a $35.0 million capital contribution to Columbus Life in December 2018. The contribution was in the form of cash.

On November 16, 2018, the Company sold common stock back to its issuer for $74.4 million. A member of the Company's Board of Directors also serves on the Board of Directors of the company that purchased the common stock.

In the fourth quarter of 2018, the Company sold bonds in exchange for cash to WSLAC, Integrity, and National Integrity in the amounts of $294.3 million, $87.0 million, and $47.6 million, respectively.

The Company paid a $250.0 million capital contribution to Integrity in June 2018. The contribution was in the form of $245.7 million in common stocks and $4.3 million in cash.

In October 2017, the Company entered into a Pension Risk Transfer agreement with WSLAC. Refer to Note 10 for more detail.

The Company received a $200.0 million dividend from WSLAC in December 2017. The dividend was $109.3 million ordinary and $90.7 million extraordinary. The dividend was in the form of cash.

The Company received a $57.1 million capital contribution from WSFG in October 2017. The contribution was in the form of cash.

The Company paid a $36.1 million capital contribution to WSLAC in October 2017. The contribution was in the form of cash.

The Company paid a $30.0 million capital contribution to Columbus Life in December 2017. The contribution was in the form of cash.

The Company paid a $45.0 million capital contribution to Integrity in December 2016. The contribution was in the form of cash.

The Company paid a $30.0 million capital contribution to Columbus Life in December 2016. The contribution was in the form of cash.

The Company had $31.1 million and $36.3 million receivable from parent, subsidiaries and affiliates as of December 31, 2018 and 2017, respectively. The Company did not have any amounts payable to parent, subsidiaries and affiliates as of December 31, 2018 or 2017. The terms of the settlement generally require that these amounts be settled in cash within 30 days.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

The Company has entered into multiple reinsurance agreements with affiliated entities. See Note 5 for further description.

5. Reinsurance

The Company had a modified coinsurance agreement with Integrity until it was recaptured on November 1, 2018. Under the terms of the agreement, the Company assumed structured settlements, guaranteed rate option annuities, and accumulation products written before July 1, 2002, and Integrity retained the reserves and the related assets of this business. At the date of recapture, there was no impact to net income or surplus. The recapture is presented in the statements of operations in lines titled miscellaneous income adjustment - termination of reinsurance agreement and miscellaneous expense adjustment - termination of reinsurance agreement for $694.6 million and $694.6 million, respectively.

The Company has a ceded reinsurance agreement with Columbus Life. Under the reinsurance agreement, Columbus Life reinsures the former liabilities of Columbus Mutual, a former affiliate, which was merged into the Company. Life and accident and health reserves ceded from the Company to Columbus Life totaled $514.2 million and $532.9 million at December 31, 2018 and 2017, respectively.

In 2006, the Company entered into a yearly renewable term reinsurance agreement with Lafayette Life, an affiliated entity, whereby the Company provides reinsurance coverage on certain life products and associated riders as this coverage is recaptured by Lafayette Life from unaffiliated reinsurers. Life reserves ceded from Lafayette Life to the Company under this agreement totaled $1.0 million and $1.1 million at December 31, 2018 and 2017, respectively.

Certain premiums and benefits are ceded to other unaffiliated insurance companies under various reinsurance agreements. The majority of the ceded business is due to ceding substandard business to reinsurers (facultative basis).

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

The effects of reinsurance on premiums, annuity considerations and deposit-type funds are as follows for the years ended December 31:



	2018			2017			2016
	(In Thousands)

Direct premiums	$	241,297		$	251,423		$	257,690
Assumed premiums:
Affiliates	2,176			1,726			2,548
Nonaffiliates	—			—			—
Ceded premiums:
Affiliates	—			—			—
Nonaffiliates	(6,419		)	(6,403		)	(6,496		)
Net premiums	$	237,054		$	246,746		$	253,742

The Company’s ceded reinsurance arrangements reduced certain other items in the accompanying financial statements by the following amounts as of and for the years ended December 31:



	2018		2017		2016
	(In Thousands)
Benefits paid or provided:
Affiliates	$	—	$	—	$	—
Nonaffiliates	4,225		3,420		3,519
Policy and contract liabilities:
Affiliates	488,266		506,178		524,323
Nonaffiliates	50,796		50,260		49,422
Amounts recoverable on reinsurance contracts:
Affiliates	—		—		—
Nonaffiliates	382		199		511

At December 31, 2018, the Company has no significant reserves ceded to unauthorized reinsurers. Amounts payable or recoverable for reinsurance on policy and contract liabilities are not subject to periodic or maximum limits. At December 31, 2018, the Company’s reinsurance recoverables are not material and no individual reinsurer owed the Company an amount that was equal to or greater than 3% of the Company’s capital and surplus.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

such that the amount of losses paid or accrued exceed the total direct premium collected. The Company remains obligated for amounts ceded in the event that the reinsurers do not meet their obligations.

There would be no reduction in surplus at December 31, 2018, if all reinsurance agreements were cancelled.

6. Federal Income Taxes

The Company and its eligible subsidiaries and affiliates file a consolidated federal income tax return. Amounts due (to)/from the subsidiaries and affiliates for federal income taxes were $(45.5) million and $(0.5) million at December 31, 2018 and 2017, respectively. The tax years 2014 through 2018 remain subject to examination by major tax jurisdictions.

The amount of federal income taxes incurred that will be available for recoupment at December 31, 2018, in the event of future capital losses is $102.9 million, $17.8 million, and $24.4 million from 2018, 2017 and 2016, respectively.

The components of the net deferred tax asset (liability) at December 31 are as follows:



		12/31/2018
		(In Thousands)
		(1)		(2)			(3)
							(Col 1+2)
		Ordinary		Capital			Total

(a)	Gross deferred tax assets	$	365,543	$	17,219		$	382,762
(b)	Statutory valuation allowance adjustments	—		—			—
(c)	Adjusted gross deferred tax assets (a - b)	365,543		17,219			382,762
(d)	Deferred tax assets nonadmitted	104,536		—			104,536
(e)	Subtotal net admitted deferred tax assets (c - d)	261,007		17,219			278,226
(f)	Deferred tax liabilities	110,675		28,445			139,120
(g)	Net admitted deferred tax asset/(net deferred tax liability) (e - f)	$	150,332	$	(11,226	)	$	139,106

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016



		12/31/2017
		(In Thousands)
		(4)		(5)			(6)
							(Col 4+5)
		Ordinary		Capital			Total

(a)	Gross deferred tax assets	$	203,868	$	7,606		$	211,474
(b)	Statutory valuation allowance adjustments	—		—			—
(c)	Adjusted gross deferred tax assets (a - b)	203,868		7,606			211,474
(d)	Deferred tax assets nonadmitted	—		—			—
(e)	Subtotal net admitted deferred tax assets (c - d)	203,868		7,606			211,474
(f)	Deferred tax liabilities	107,148		80,148			187,296
(g)	Net admitted deferred tax asset/(net deferred tax liability) (e - f)	$	96,720	$	(72,542	)	$	24,178



		Change
		(In Thousands)
		(7)		(8)			(9)
							(Col 7+8)
		Ordinary		Capital			Total

(a)	Gross deferred tax assets	$	161,675	$	9,613		$	171,288
(b)	Statutory valuation allowance adjustments	—		—			—
(c)	Adjusted gross deferred tax assets (a - b)	161,675		9,613			171,288
(d)	Deferred tax assets nonadmitted	104,536		—			104,536
(e)	Subtotal net admitted deferred tax assets (c - d)	57,139		9,613			66,752
(f)	Deferred tax liabilities	3,527		(51,703		)	(48,176		)
(g)	Net admitted deferred tax asset/(net deferred tax liability) (e - f)	$	53,612	$	61,316		$	114,928



		12/31/2018
		(In Thousands)
		(1)		(2)		(3)
						(Col 1+2)
Admission Calculation Components SSAP No. 101		Ordinary		Capital		Total

(a)	Federal income taxes paid in prior years recoverable through loss carrybacks	$	—	$	17,219	$	17,219
(b)	Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from (a) above) after application of the threshold limitation (the lesser of (b)1 and (b)2 below)	123,991		—		123,991
	1. Adjusted gross deferred tax assets expected to be realized following the balance sheet date.	123,991		—		123,991
	2. Adjusted gross deferred tax assets allowed per limitation threshold.	XXX		XXX		639,639
(c)	Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from (a) and (b) above) offset by gross deferred tax liabilities	137,016		—		137,016
(d)	Deferred tax assets admitted as the result of application of SSAP No. 101 Total ((a) + (b) + (c))	$	261,007	$	17,219	$	278,226

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016



		12/31/2017
		(In Thousands)
		(4)		(5)		(6)
						(Col 4+5)
Admission Calculation Components SSAP No. 101		Ordinary		Capital		Total

(a)	Federal income taxes paid in prior years recoverable through loss carrybacks	$	—	$	—	$	—
(b)	Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from (a) above) after application of the threshold limitation (the lesser of (b)1 and (b)2 below)	24,178		—		24,178
	1. Adjusted gross deferred tax assets expected to be realized following the balance sheet date.	24,178		—		24,178
	2. Adjusted gross deferred tax assets allowed per limitation threshold.	XXX		XXX		760,472
(c)	Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from (a) and (b) above) offset by gross deferred tax liabilities	179,690		7,606		187,296
(d)	Deferred tax assets admitted as the result of application of SSAP No. 101 Total ((a) + (b) + (c))	$	203,868	$	7,606	$	211,474



		Change
		(In Thousands)
		(7)			(8)			(9)
								(Col 7+8)
Admission Calculation Components SSAP No. 101		Ordinary			Capital			Total

(a)	Federal income taxes paid in prior years recoverable through loss carrybacks	$	—		$	17,219		$	17,219
(b)	Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from (a) above) after application of the threshold limitation (the lesser of (b)1 and (b)2 below)	99,813			—			99,813
	1. Adjusted gross deferred tax assets expected to be realized following the balance sheet date.	99,813			—			99,813
	2. Adjusted gross deferred tax assets allowed per limitation threshold.	XXX			XXX			(120,833		)
(c)	Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from (a) and (b) above) offset by gross deferred tax liabilities	(42,674		)	(7,606		)	(50,280		)
(d)	Deferred tax assets admitted as the result of application of SSAP No. 101 Total ((a) + (b) + (c))	$	57,139		$	9,613		$	66,752



	2018	2017
	(In Thousands)
Ratio percentage used to determine recovery period and threshold limitation amount	928%	1,047%
Amount of adjusted capital and surplus used to determine recovery period and threshold limitation in (b)2 above	$580,015	$553,910

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016



		12/31/2018
		(1)	(2)
Impact of tax planning strategies		Ordinary	Capital
		(In Thousands)
(a)	Adjusted gross DTAs amount	$365,543	$17,219
(b)	Percentage of adjusted gross DTAs by tax character attributable to the impact of tax planning strategies	10.99%	4.50%
(c)	Net admitted adjusted gross DTAs amount	$261,007	$17,219
(d)	Percentage of net admitted adjusted gross DTAs by tax character attributable to the impact of tax planning strategies	15.12%	6.19%



		12/31/2017
		(3)	(4)
Impact of tax planning strategies		Ordinary	Capital
		(In Thousands)
(a)	Adjusted gross DTAs amount	$203,868	$7,606
(b)	Percentage of adjusted gross DTAs by tax character attributable to the impact of tax planning strategies	0.00%	0.00%
(c)	Net admitted adjusted gross DTAs amount	$203,868	$7,606
(d)	Percentage of net admitted adjusted gross DTAs by tax character attributable to the impact of tax planning strategies	0.00%	0.00%



		Change
		(5)	(6)
Impact of tax planning strategies		Ordinary	Capital
		(In Thousands)

(a)	Adjusted gross DTAs amount	$161,675	$9,613
(b)	Percentage of adjusted gross DTAs by tax character attributable to the impact of tax planning strategies	10.99%	4.50%
(c)	Net admitted adjusted gross DTAs amount	$57,139	$9,613
(d)	Percentage of net admitted adjusted gross DTAs by tax character attributable to the impact of tax planning strategies	15.12%	6.19%

The Company's tax planning strategies include the use of reinsurance.

Current income taxes incurred consist of the following major components:



				12/31/2018		12/31/2017		12/31/2016
				(In Thousands)
(1	)	Current income tax
		(a)	Federal	$	39,452	$	11,938	$	4,989
		(b)	Foreign	427		173		204
		(c)	Subtotal	39,879		12,111		5,193
		(d)	Federal income tax on net capital gains	64,841		5,319		18,724
		(e)	Utilization of capital loss carryforwards	—		—		—
		(f)	Other	—		—		—
		(g)	Federal and foreign income taxes incurred	$	104,720	$	17,430	$	23,917

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016



			(1)		(2)		(3)
							(Col 1-2)
(2)	Deferred tax assets:		12/31/2018		12/31/2017		Change
	(a)	Ordinary	(In Thousands)
		(1) Discounting of unpaid losses	$	—	$	—	$	—
		(2) Unearned premium revenue	—		—		—
		(3) Policyholder reserves	49,815		47,155		2,660
		(4) Investments	40,703		—		40,703
		(5) Deferred acquisition costs	17,533		17,282		251
		(6) Policyholder dividends accrual	4,323		4,273		50
		(7) Fixed assets	3,785		4,115		(330		)
		(8) Compensation and benefits accrual	92,711		93,056		(345		)
		(9) Pension accrual	—		—		—
		(10) Receivables - nonadmitted	149,927		35,022		114,905
		(11) Net operating loss carryforward	—		—		—
		(12) Tax credit carryforward	—		—		—
		(13) Other	6,746		2,965		3,781
		(99) Subtotal	365,543		203,868		161,675
	(b)	Statutory valuation allowance adjustment	—		—		—
	(c)	Nonadmitted	104,536		—		104,536
	(d)	Admitted ordinary deferred tax assets (2a99 - 2b - 2c)	261,007		203,868		57,139
	(e)	Capital
		(1) Investments	17,219		7,606		9,613
		(2) Net capital loss carryforward	—		—		—
		(3) Real estate	—		—		—
		(4) Other	—		—		—
		(99) Subtotal	17,219		7,606		9,613
	(f)	Statutory valuation allowance adjustment	—		—		—
	(g)	Nonadmitted	—		—		—
	(h)	Admitted capital deferred tax assets (2e99- 2f - 2g)	17,219		7,606		9,613
	(i)	Admitted deferred tax assets (2d + 2h)	$	278,226	$	211,474	$	66,752

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016



			(1)		(2)		(3)
							(Col 1-2)
			12/31/2018		12/31/2017		Change
(3)	Deferred tax liabilities:		(In Thousands)
	(a)	Ordinary
		(1) Investments	$	95,919	$	95,677	$	242
		(2) Fixed assets	342		439		(97		)
		(3) Deferred and uncollected premium	8,912		9,524		(612		)
		(4) Policyholder reserves	5,474		1,472		4,002
		(5) Other	28		36		(8		)
		(99) Subtotal	110,675		107,148		3,527
	(b)	Capital
		(1) Investments	28,445		80,148		(51,703		)
		(2) Real estate	—		—		—
		(3) Other	—		—		—
		(99) Subtotal	28,445		80,148		(51,703		)
	(c)	Deferred tax liabilities (3a99 + 3b99)	139,120		187,296		(48,176		)
(4)	Net deferred tax assets/liabilities (2i - 3c)		$	139,106	$	24,178	$	114,928

Among the more significant book-to-tax adjustments were the following:



	12/31/2018			Effective Tax Rate		12/31/2017			Effective Tax Rate		12/31/2016			Effective Tax Rate
	(In Thousands)					(In Thousands)					(In Thousands)

Provision computed at statutory rate	$	111,878		21.00	%	$	101,581		35.00	%	$	30,050		35.00	%
Dividends received deduction	(1,990		)	(0.37	)	(74,721		)	(25.75	)	(5,082		)	(5.92	)
Tax credits	(10,205		)	(1.92	)	(5,900		)	(2.03	)	(2,720		)	(3.17	)
Other invested assets and nonadmitted change	(156,090		)	(29.30	)	(21,153		)	(7.29	)	(9,324		)	(10.86	)
Uncertain tax positions	3,876			0.73		—			—		—			—
Statutory reserve change	—			—		(215		)	(0.07	)	(1,647		)	(1.92	)
Other	(454		)	(0.09	)	(1,304		)	(0.45	)	(5,154		)	(6.00	)
Change in federal tax rate	(7,813		)	(1.47	)	122,169			42.09		—			—
Total statutory income taxes	$	(60,798	)	(11.42	)%	$	120,457		41.50	%	$	6,123		7.13	%

Federal taxes incurred	$	104,720		19.66	%	$	17,430		6.01	%	$	23,917		27.86	%
Change in net deferred income taxes	(165,518		)	(31.08	)	103,027			35.49		(17,794		)	(20.73	)
Total statutory income taxes	$	(60,798	)	(11.42	)%	$	120,457		41.50	%	$	6,123		7.13	%

At December 31, 2018, the Company had $0.0 of net operating loss carryforwards, net capital loss carryforwards and tax credit carry forwards; the company had $0.0 of deferred tax liabilities that are not recognized.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

On December 22, 2017, the Tax Cuts and Jobs Act (the Tax Act) was enacted, significantly changing the US income tax law. Among the provisions of the Tax Act were the establishment of a flat corporate income tax rate of 21%, a general repeal of net operating loss carrybacks and a reduction in the maximum deduction for net operating loss carryforwards arising in tax years beginning after 2017, and the elimination or reduction of certain deductions, exclusions and credits. The Tax Act is aimed at encouraging economic growth through the reduction in corporate income tax rates and simplification of the tax law which will create a broadened tax base.

The Company has recognized the effects of the tax rate change on its deferred tax balances in its December 31, 2017, financial statements. The re-measurement of deferred tax assets and liabilities resulted in a reduction of net deferred tax assets of $16.1 million, of which ($96.0) million and $122.2 million was recorded as an adjustment to the change in net unrealized capital gains (losses) and the change in net deferred income tax, respectively. Upon issuance of the Company’s financial statements for the year ended December 31, 2017, the Company’s accounting for certain income tax effects of the Tax Act was incomplete; however, the Company included reasonable estimates of these balances in its re-measurement of deferred tax assets and liabilities. At December 31, 2018, the Company has completed its accounting for all of the enactment-date tax effects of the Tax Act.

The Company is subject to annual examination by the Internal Revenue Service (IRS). During the most recent IRS audit cycle, IRS examiners have indicated their disagreement with certain tax deductions for investments and the research and development tax credit taken on the 2014 and 2015 tax returns. The Company believes that the IRS will issue “Notices of Proposed Adjustments” within the next 12 months disallowing all or a portion of the tax deduction and credit for tax years 2014 and 2015. In addition, the Company filed amended 2014 through 2016 tax returns to elect a reserve methodology pursuant to Internal Revenue Code section 807(d)(4), a stricken Code section by the Tax Cuts and Jobs Act. The Company believes that the reserve deduction is more likely than not to be sustained, however, guidance is lacking as to when such an election can be made. The Company concluded that a greater than 50% portion of the tax positions will ultimately be sustained, but recorded an uncertain tax position of $8.0 in the 2018 financial statements with respect to the referenced tax positions.

7. Capital and Surplus

Ohio insurance law limits the amount of dividends that can be paid to a parent in a holding company structure without prior approval of the regulators to the greater of 10% of statutory surplus or statutory net income as of the preceding December 31 less any dividends paid in the preceding 12 months, but only to the extent of earned surplus as of the preceding December 31. Based on these limitations, the Company is able to pay dividends of up to $493.7 million by the end of 2019 without seeking prior regulatory approval based on capital and surplus of $4,937.1 million at December 31, 2018.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

8. Commitments and Contingencies

At December 31, 2018, the Company does not have any material lease agreements as a lessee for office space or equipment.

At December 31, 2018, the Company has future commitments to provide additional capital contributions of $364.0 million to investments in joint ventures, limited partnerships and limited liability companies.

The Company guarantees the payment of all policyholder obligations of each of the following wholly-owned subsidiaries: WSLAC, Columbus Life and Integrity. In addition, the Company guarantees all policyholder obligations of National and The Lafayette Life Insurance Company (Lafayette Life), an affiliated entity which is wholly-owned by the Company’s parent, WSFG. Guarantees on behalf of wholly-owned subsidiaries or on behalf of related parties that are considered to be unlimited (as in the case of the guarantee on behalf of Lafayette Life) are exempt from the initial liability recognition criteria and therefore no liability has been recognized in the financial statements. Due to the unlimited nature of the guarantees, the Company is unable to estimate the maximum potential amount of future payments under the guarantees. In the unlikely event the guarantees would be triggered, the Company may be permitted to take control of the underlying assets to recover all or a portion of the amounts paid under the guarantees.

The Company has guaranteed two mortgage loans in which the borrower is an affiliated limited liability company involved in development of real estate. These guarantees have a maximum exposure to the Company of $27.7 million for Canal Senate Apartments, LLC, and $15.1 million for 506 Phelps Holdings, LLC, in the event the real estate collateral of the affiliated limited liability company is not sufficient to cover the payment of the loan. The fair value of the real estate collateral at December 31, 2018, was approximately $46.7 million and $40.3 million, respectively. These loans mature in August 2022 and February 2024, respectively.

The Company has guaranteed a portion of the payment of mortgage loans made by its wholly-owned subsidiary, WSLAC, to two affiliated limited liability companies, Cranberry NP Hotel Company and Sundance Hotel, LLC, in the amounts of $9.2 million and $14.6 million, respectively. The guarantees have a maximum exposure to the Company of $4.6 million and $6.5 million in the event the real estate collateral of the affiliated limited liability company is not sufficient to cover the payment of the loan. The fair value of the real estate collateral at December 31, 2018, was approximately $10.9 million and $16.1 million. These loans mature in October 2021 and January 2024, respectively.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

9. Annuity Reserves and Deposit-Type Contract Liabilities



	General Account		Separate Account With Guarantees		Separate Account Non-guaranteed		Total		Percent
	(In Thousands)
Subject to discretionary withdrawal:
With fair value adjustment	$	—	$	—	$	—	$	—	—	%
At book value less current surrender charge of 5% or more	—		—		—		—		—
At fair value	—		—		—		—		—
Total with adjustment or at market value	—		—		—		—		—
Subject to discretionary withdrawal at book value without adjustment (minimal or no charge or adjustment)	322,720		—		—		322,720		25.5
Not subject to discretionary withdrawal	6,991		—		933,756		940,747		74.5
Total annuity reserves and deposit-type contract liabilities (before reinsurance)	329,711		—		933,756		1,263,467		100.0	%
Less reinsurance ceded	108,851		—		—		108,851
Net annuity reserves and deposit-type contract liabilities	$	220,860	$	—	$	933,756	$	1,154,616

10. Employee Retirement Benefits

The Company has a noncontributory pension plan under group annuity contracts written by the Company covering substantially all employees and field representatives. In addition, the Company provides certain health care and life insurance benefits for retired employees or their beneficiaries. Substantially all of the Company’s employees and field representatives may become eligible for those benefits when they reach normal retirement age while working for the Company.

The Company uses a December 31 measurement date for all plans.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

A summary of assets, obligations and assumptions of the pension and other postretirement benefit plans at December 31, are as follows:



	Pension Benefits						Postretirement Medical
	2018			2017			2018			2017
	(In Thousands)
Change in benefit obligation:
Benefit obligation at beginning of year	$	1,026,400		$	1,015,700		$	164,700		$	169,500
Service cost	22,511			19,990			404			483
Interest cost	34,022			35,792			5,419			5,688
Contribution by plan participants	—			—			4,930			4,855
Actuarial (gain) loss	(74,041		)	56,848			(6,492		)	(2,985		)
Benefits paid	(49,851		)	(52,192		)	(13,019		)	(12,841		)
Plan amendments	5,608			—			—			—
Settlements	—			(49,738		)	—			—
Benefit obligation at end of year	$	964,649		$	1,026,400		$	155,942		$	164,700

Change in plan assets:
Fair value of plan assets at beginning of year	$	993,403		$	914,875		$	—		$	—
Actual return on plan assets	(9,796		)	130,458			—			—
Employer contribution	—			50,000			8,089			7,986
Plan participants’ contributions	—			—			4,930			4,855
Benefits paid	(49,851		)	(52,192		)	(13,019		)	(12,841		)
Settlements	—			(49,738		)	—			—
Fair value of plan assets at end of year	$	933,756		$	993,403		$	—		$	—



	Pension Benefits						Postretirement Medical
	2018			2017			2018			2017
	(In Thousands)
Funded status:
Overfunded (underfunded) obligation	$	(30,893	)	$	(32,997	)	$	(155,942	)	$	(164,700	)
Unrecognized net (gain) or loss	—			—			—			—
Unrecognized prior service cost	—			—			—			—
Net amount recognized*	$	(30,893	)	$	(32,997	)	$	(155,942	)	$	(164,700	)

Accumulated benefit obligation for vested employees and partially vested employees to the extent vested	$	904,797		$	964,937		$	155,942		$	164,700

*Nonadmitted if overfunded

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016



	Pension Benefits
	2018			2017			2016
	(In Thousands)
Components of net periodic benefit cost:
Service cost	$	22,511		$	19,990		$	18,051
Interest cost	34,022			35,792			36,329
Expected return on plan assets	(72,592		)	(66,605		)	(64,585		)
Amount of recognized gains and losses	27,655			31,765			35,764
Amount of prior service cost recognized	(4,620		)	(5,134		)	(5,134		)
Total net periodic benefit cost (benefit)	$	6,976		$	15,808		$	20,425



	Postretirement Medical
	2018			2017			2016
	(In Thousands)
Components of net periodic benefit cost:
Service cost	$	404		$	483		$	621
Interest cost	5,419			5,688			6,327
Amount of recognized gains and losses	(2,138		)	(2,986		)	(1,669		)
Amount of prior service cost recognized	(2,633		)	(1,503		)	(1,075		)
Total net periodic benefit cost (benefit)	$	1,052		$	1,682		$	4,204



	Pension Benefits						Postretirement Medical
	2018			2017			2018			2017
	(In Thousands)
Amounts in unassigned funds (surplus) recognized as components of net periodic benefit cost:
Items not yet recognized as a component of net periodic cost - prior year	$	375,539		$	409,174		$	(45,288	)	$	(46,811	)
Net transition asset or obligation recognized	—			—			—			—
Net prior service cost or credit arising during the period	5,608			—			—			—
Net prior service cost or credit recognized	4,620			5,134			2,633			1,503
Net gain and loss arising during the period	8,347			(7,004		)	(6,527		)	(2,966		)
Net gain and loss recognized	(27,655		)	(31,765		)	2,138			2,986
Items not yet recognized as a component of net periodic cost - current year	$	366,459		$	375,539		$	(47,044	)	$	(45,288	)

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016



	Pension Benefits						Postretirement Medical
	2018			2017			2018			2017
	(In Thousands)
Amounts in unassigned funds (surplus) expected to be recognized in the next fiscal year as components of net periodic benefit cost:
Net transition asset or (obligation)	$	—		$	—		$	—		$	—
Net prior service cost or (credit)	(4,625		)	(5,151		)	(1,392		)	(2,633		)
Net recognized gains and (losses)	26,174			28,028			(3,828		)	(3,117		)

Amounts in unassigned funds (surplus) that have not yet been recognized as components of net periodic benefit cost:
Net transition asset or (obligation)	$	—		$	—		$	—		$	—
Net prior sevice cost or (credit)	(6,399		)	(16,627		)	(5,566		)	(8,199		)
Net recognized gains and (losses)	372,858			392,166			(41,477		)	(37,089		)

Assumptions used to determine net periodic benefit cost for the year ended December 31:



	Pension Benefits		Postretirement Medical
	2018	2017	2018	2017

Discount rate	3.78%	4.17%	3.71%	4.12%
Rate of compensation increase	4.60%	4.60%	N/A	N/A
Expected long-term rate of return on plan assets	7.50%	7.50%	N/A	N/A

Assumptions used to determine the benefit obligation at December 31:



	Pension Benefits		Postretirement Medical
	2018	2017	2018	2017

Discount rate	4.39%	3.78%	4.34%	3.71%
Rate of compensation increase	4.60%	4.60%	N/A	N/A

The Company’s pension liability was $30.9 million and $33.0 million at December 31, 2018 and 2017, respectively.

The Company utilizes a full yield curve approach in the estimation of liabilities, service cost, and interest cost for pension and postretirement benefits by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. The yield curve utilized in the cash flow analysis is comprised of highly rated (Aaa or Aa) corporate bonds. The discount rate was increased from 3.78% at December 31, 2017, to 4.39% at December 31, 2018. This resulted in a $80.4 million decrease in the pension benefit obligation in 2018. The discount rate was decreased from 4.17% at December 31, 2016, to 3.78% at December 31, 2017. This resulted in a $51.9 million increase in the pension benefit obligation in 2017.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

The Company employs a prospective building block approach in determining the long-term expected rate of return for plan assets. Historical returns are determined by asset class. The historical relationships between equities, fixed income securities, and other assets are reviewed. The Company applies long-term asset return estimates to the plan’s target asset allocation to determine the weighted-average long-term return. The Company’s long-term asset allocation was determined through modeling long-term returns and asset return volatilities and is guided by an investment policy statement created for the plan.

The asset allocation for the defined benefit pension plan at the end of 2018 and 2017, and the target allocation for 2018 by asset category, are as follows:



	Target Allocation Percentage		Percentage of Plan Assets
	2018		2018		2017
Asset category:
Equity securities	55	%	59	%	62	%
Fixed income securities	15		14		8
Short-term investments	5		1		—
Other	25		26		30
Total	100	%	100	%	100	%

The plan employs a total return investment approach whereby a mix of fixed income and equity investments are used to maximize the long-term return of plan assets for a prudent level of risk. Risk tolerance is established through careful consideration of plan liabilities, plan funded status, and corporate financial condition. The total portfolio is structured with multiple sub-portfolios, each with a specific fixed income or equity asset management discipline. Each sub-portfolio is subject to individual limitations and performance benchmarks as well as limitations at the consolidated portfolio level. Quarterly asset allocation meetings are held to evaluate portfolio asset allocations and to establish the optimal mix of assets given current market conditions and risk tolerance. Investment mix is measured and monitored on an ongoing basis through regular investment reviews, annual liability measurements, and periodic asset/liability studies.

The Company’s pension plan assets consist primarily of debt and equity securities, mutual funds and private equity funds, all of which are carried at fair value.

Fair value is defined as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date (an exit price). The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels.


•	Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities. The Company’s Level 1 assets primarily include exchange-traded equity securities and mutual funds.

•

Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. The Company’s Level 2 assets include certain debt securities for which public price quotations are not available, but that use other market observable inputs from third-party pricing service quotes or internal valuation models using observable inputs. Level 2 assets also include private funds that invest primarily in domestic debt securities where the Company has

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

the right to redeem its interest at net asset values. The underlying debt securities within these funds employ similar valuation methodologies as the Company’s other investments in debt securities.


•	Level 3 - Significant unobservable inputs for the asset or liability. The Company’s Level 3 assets primarily include private equity fund interests.

Debt Securities

The fair values of actively traded debt securities have been determined through the use of third-party pricing services utilizing market observable inputs.

Equity Securities

The fair values of actively traded equity securities have been determined utilizing publicly quoted prices from third-party pricing services.

Mutual Funds

The fair values of mutual funds have been determined utilizing the net asset values of the funds.

Private Equity and Fixed Income Funds

The fair values of private equity and fixed income funds have been determined utilizing the net asset values of the funds.

Other Assets

Other assets primarily include securities lending reinvested collateral and a group annuity contract. The fair value of securities lending reinvested collateral assets are from third-party sources utilizing publicly quoted prices. The group annuity contract is carried at cash surrender value, which approximates fair value.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

The fair value of the pension plan’s assets by asset category is as follows:



	Assets Measured at Fair Value		Fair Value Hierarchy Level
	Assets Measured at Fair Value		Level 1		Level 2*		Level 3
	(In Thousands)
At December 31, 2018:
Debt securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	—	$	—	$	—	$	—
Debt securities issued by states of the U.S. and political subdivisions of the states	2,220		—		2,220		—
Corporate securities	106,423		—		106,423		—
Residential mortgage-backed securities	4,519		—		4,519		—
Asset-backed securities	11,149		—		10,545		604
Equity securities:
Common equity	368,763		328,459		40,304		—
Mutual funds	179,682		179,682		—		—
Other invested assets:
Private equity and fixed income funds	212,558		—		212,558		—
Surplus notes	2,992		—		2,992		—
Real estate	18,052		—		—		18,052
Other assets	54,778		53,184		1,594		—
Total plan assets	$	961,136	$	561,325	$	381,155	$	18,656


*	Includes investments using net asset value (NAV) as a practical expedient.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016



	Assets Measured at Fair Value		Fair Value Hierarchy Level
	Assets Measured at Fair Value		Level 1		Level 2		Level 3
	(In Thousands)
At December 31, 2017:
Debt securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	—	$	—	$	—	$	—
Debt securities issued by states of the U.S. and political subdivisions of the states	3,068		—		3,068		—
Corporate securities	57,482		—		57,482		—
Residential mortgage-backed securities	5,102		—		5,102		—
Commercial mortgage-backed securities	—		—		—		—
Asset-backed securities	6,652		—		6,652		—
Equity securities:
Common equity	424,016		383,590		40,426		—
Mutual funds	187,488		187,488		—		—
Preferred stock	3,889		—		3,889		—
Other invested assets:
Private equity and fixed income funds	214,462		—		152,490		61,972
Surplus notes	3,399		—		3,399		—
Real estate	16,625		—		—		16,625
Other assets	83,511		82,500		1,011		—
Total plan assets	$	1,005,694	$	653,578	$	273,519	$	78,597

For measurement purposes of the postretirement benefit obligation at December 31, 2018, a 5.425 percent annual rate of increase in the per capita cost of covered health care benefits is assumed for 2019. The rate was assumed to decrease gradually to 4.75 percent for 2028 and remain at that level thereafter.

Increasing or decreasing the assumed health care cost trend rate assumption by one percentage point in each year would increase (decrease) the postretirement benefit obligation as of December 31, 2018, by $19.6 million and $(16.5) million, respectively, and the estimated interest cost components of net period postretirement benefit cost for 2018 by $0.8 million and $(0.6) million, respectively.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

At December 31, 2018, the assets of the Company’s pension include approximately $85.6 million invested in the Touchstone Family of Funds, which are administered by the Company, and $181.0 million invested in private equity and fixed income funds managed by Fort Washington Investment Advisors, Inc. At December 31, 2017, the assets of the Company’s pension include approximately $82.9 million invested in the Touchstone Family of Funds, which are administered by the Company, $184.6 million invested in private equity and fixed income funds managed by Fort Washington Investment Advisors, Inc.

As of December 31, 2018, future benefit payments for the pension plan are expected as follows (in millions):



2019	$	52.4
2020	53.0
2021	53.9
2022	54.9
2023	55.9
Five years thereafter	293.2

Future benefit payments for the postretirement medical plan, net of amounts contributed by plan participants, are expected as follows (in millions):



2019	$	10.5
2020	10.6
2021	10.6
2022	10.5
2023	10.4
Five years thereafter	49.0

The Company contributed $0.0 million and $50.0 million to the pension plan in 2018 and 2017, respectively. The Company does not anticipate a required contribution to the pension plan during 2019.

In 2017, the Company entered into a group annuity contract with WSLAC to transfer risk and administration costs associated with their pension benefit obligations. This reduced plan assets, and the pension benefit obligation by $49.7 million. Future changes in plan assets and obligations will no longer reflect the participants included in the transfer.

The Company made contributions to the postretirement medical plan of $8.1 million in 2018 and expects to contribute $101.6 million between 2019 and 2028, inclusive. The Company received $0.0 million of subsidies in 2018. The Company’s postretirement medical plan did not collect the Medicare Part D Subsidy for claims activity occurring after January 1, 2013.

The Company sponsors a contributory employee retirement savings plan covering substantially all eligible, full-time employees. This plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). The Company’s contributions to the plan are based on a combination of the employee’s contributions to the plan and a percentage of the employee’s earnings for the year. The total of the Company’s contributions to the defined contribution plan were $5.4 million, $5.1 million, and $4.8 million for 2018, 2017 and 2016, respectively.

The Western and Southern Life Insurance Company

Notes to Financial Statements (Statutory-Basis)

December 31, 2018, 2017 and 2016

11. Premium and Annuity Considerations Deferred and Uncollected

Deferred and uncollected life insurance premiums and annuity considerations at December 31, 2018, were as follows:



	Gross		Net of Loading
	(In Thousands)
Ordinary new business	$	4,476	$	278
Ordinary renewal	70,589		49,449
Accident and health renewal	430		324
Assumed investment type-contracts	196		196
Total	$	75,691	$	50,247

INT VAROOM II April 2019

PART C - Other Information


Item 24.	Financial Statements and Exhibits


(a)	Financial Statements included in Part A:

Condensed Financial Information for the Portfolios

Financial Statements included in Part B:

Separate Account I of Integrity Life Insurance Company:

Report of Independent Registered Public Accounting Firm

Statements of Assets and Liabilities as of December 31, 2018

Statements of Operations for the Year Ended December 31, 2018

Statements of Changes in Net Assets for the Years Ended December 31, 2018 and 2017

Notes to Financial Statements

Integrity Life Insurance Company (Depositor):

Report of Independent Auditors

Balance Sheets (Statutory-Basis) as of December 31, 2018 and 2017

Statements of Operations (Statutory-Basis) for the Years Ended December 31, 2018, 2017 and 2016

Statements of Changes in Capital and Surplus (Statutory-Basis) for the Years Ended December 31, 2018, 2017 and 2016

Statements of Cash Flow (Statutory-Basis) for the Years Ended December 31, 2018, 2017 and 2016

Notes to Financial Statements (Statutory-Basis)

The Western and Southern Life Insurance Company (Guarantor):

Report of Independent Auditors

Balance Sheets (Statutory-Basis) as of December 31, 2018 and 2017

Statements of Operations (Statutory-Basis) for the Years Ended December 31, 2018, 2017 and 2016

Statements of Changes in Capital and Surplus (Statutory-Basis) for the Years Ended December 31, 2018, 2017

and 2016

Statements of Cash Flow (Statutory-Basis) for the Years Ended December 31, 2018, 2017 and 2016

Notes to Financial Statements (Statutory-Basis)

(b) Exhibits:

The following exhibits are filed herewith or incorporated by reference as indicated:


1.	Resolutions of the Board of Directors of Integrity Life Insurance Company (Integrity) authorizing the establishment of Separate Account I, the Registrant. Incorporated by reference to Exhibit 99.1 to Registrant's Post-Effective Amendment No. 15 to registration statement on Form N-4 (File No. 333-44876), filed November 7, 2008.


2.	Not Applicable


3.


a.	Form of Selling/General Agent Agreement between Integrity, Touchstone Securities, Inc. and broker dealers. Incorporated by reference to Exhibit 99.3(A) to Registrant’s initial registration statement on Form N-4 (File No. 333-178438), filed December 12, 2011.


b.	Form of Selling Agreement among W&S Financial Group Distributors, Inc., on behalf of National Integrity, Touchstone Securities, Inc., and broker dealers. Incorporated by reference to Exhibit 99.3(B) to Registrant’s Post-Effective Amendment No. 4 to registration statement on Form N-4 (File No. 333-177616), filed April 25, 2014.


c.	Variable Contract Principal Underwriter Agreement with Touchstone Securities, Inc. dated January 1, 2006. Incorporated by reference to Exhibit 99.3(B) to Registrant’s initial registration statement on Form N-4 (File No. 333-178438), filed December 12, 2011.


4.


a.	Form of owner driven variable annuity contract. Incorporated by reference to Exhibit 99.4(A) to Registrant’s Post-Effective Amendment No. 1 to registration statement on Form N-4 (File No. 333-178438), filed April 25, 2012.


b.	Form of death benefit rider. Incorporated by reference to Exhibit 99.4(B) to Registrant’s Pre-Effective Amendment No. 1 to registration statement on Form N-4 (File No. 333-166995), filed August 9, 2010.

INT VAROOM II April 2019


c.	Form of endorsement to guaranteed lifetime withdrawal benefit rider effective May 1, 2014. Incorporated by reference to Exhibit 99.4(C) to Registrant’s Post-Effective Amendment No. 4 to registration statement on Form N-4 (File No. 333-178438), filed April 28, 2015.


d.	Form of Individual Guaranteed Lifetime Withdrawal Benefit Rider. Incorporated by reference to Exhibit 99.4(C) to Registrant’s Post-Effective Amendment No. 1 to registration statement on Form N-4 (File No. 333-178438), filed April 25, 2012.


e.	Form of Spousal Guaranteed Lifetime Withdrawal Benefit Rider. Incorporated by reference to Exhibit 99.4(D) to Registrant’s Post-Effective Amendment No. 1 to registration statement on Form N-4 (File No. 333-178438), filed April 25, 2012.


f.	Form of traditional and SEP IRA Endorsement. Incorporated by reference to Exhibit 99.4(E) to Registrant’s Pre-Effective Amendment No. 3 to registration statement on Form N-4 (File No. 333-166995), filed December 10, 2010.


5.	Form of Application for Owner Driven Contract. Incorporated by reference to Exhibit 99.4(C) to Registrant’s Post-Effective Amendment No. 4 to registration statement on Form N-4 (File No. 333-178438), filed April 28, 2015.


6.


a.	Certificate of Incorporation of Integrity. Incorporated by reference to Exhibit 99.6(A) to Registrant’s initial registration statement on Form N-4 (File No. 333-178438), filed December 12, 2011.


b.	By-Laws of Integrity. Incorporated by reference to Exhibit 99.6(B) to Registrant’s initial registration statement on Form N-4 (File No. 333-178438), filed December 12, 2011.


7.	Not applicable.


8.


a.	Amended and Restated Participation Agreement among Variable Insurance Products Funds, Fidelity Distributors Corporation and Integrity dated August 10, 2007. Incorporated by reference to Exhibit 99.8(A) to Registrant's Post-Effective Amendment No. 14 to registration statement on Form N-4 (File No. 333-44876), filed April 23, 2008.


b.	Amendment No. 1 to Amended and Restated Participation Agreement among Variable Insurance Products Funds, Fidelity Distributors Corporation and Integrity dated August 10, 2007. Incorporated by reference to Exhibit 99.8(B) to Registrant's Post-Effective Amendment No. 14 to registration statement on Form N-4 (File No. 333-44876), filed April 23, 2008.


c.	Rule 22c-2 Agreement between Fidelity Distributors Corporation and Integrity dated March 26, 2007. Incorporated by reference to Exhibit 99.8(D) to Registrant's Post-Effective Amendment No. 14 to registration statement on Form N-4 (File No. 333-44876), filed April 23, 2008.


d.	Voting Agreement between Integrity and The Vanguard Group, Inc. effective December 1, 2010. Incorporated by reference to Exhibit 99.8(C) to Registrant’s Post-Effective Amendment No. 1 to registration statement on Form N-4 (File No. 333-166995), filed April 27, 2011.


e.	Voting Agreement between Integrity and BlackRock, Inc. effective December 1, 2010. Incorporated by reference to Exhibit 99.8(D) to Registrant’s Post-Effective Amendment No. 1 to registration statement on Form N-4 (File No. 333-166995), filed April 27, 2011.


f.	Access Agreement between Integrity and Mid Atlantic Trust Company effective November 1, 2010. Incorporated by reference to Exhibit 99.8(E) to Registrant’s Pre-Effective Amendment No. 3 to registration statement on Form N-4 (File No. 333-166995), filed December 10, 2010.


g.	ETF xChange Authorization between Integrity and Mid Atlantic Trust Company effective November 1, 2010. Incorporated by reference to Exhibit 99.8(F) to Registrant’s Pre-Effective Amendment No. 3 to registration statement on Form N-4 (File No. 333-166995), filed December 10, 2010.


h.	Amendment 2 to Access Agreement and ETFxChange Authorization between Integrity and Mid Atlantic Trust Company effective February 2, 2015. Incorporated by reference to Exhibit 99.8(H) to Registrant’s Post-Effective Amendment No. 4 to registration statement on Form N-4 (File No. 333-178438), filed April 28, 2015.


i.	Custodial Agreement between Integrity and Mid Atlantic Trust Company effective November 1, 2010. Incorporated by reference to Exhibit 99.8(G) to Registrant’s Pre-Effective Amendment No. 3 to registration statement on Form N-4 (File No. 333-166995), filed December 10, 2010.


9.	Opinion and Consent of Bryan J. Kreyling, Esq. as to the legality of the securities registered, filed herewith.


10.


a.	Consent of Independent Registered Public Accounting Firm, filed herewith.


b.	Consent of Independent Auditors, filed herewith.


11.	Not applicable.


12.	Not applicable.

INT VAROOM II April 2019


13.	Powers of Attorney of members of the Board of Directors of The Western and Southern Life Insurance Company (WSLIC), specifically James N. Clark, Jo Ann Davidson, Robert B. Truitt, and Thomas L. Williams, each dated April 16, 2019, filed herewith.


14.	Guarantee from WSLIC to the policyholders of Integrity. Incorporated by reference to Exhibit 99.14 to Registrant’s initial registration statement on Form N-4 (File No. 333-178438), filed December 12, 2011.


15.	Cover letter, filed herewith.

Item 25. Directors and Officers of the Depositor

The names and principal business addresses* of the directors and officers of, and their positions with the Depositor, are as follows:

Directors:


John F. Barrett	Director, Chairman of the Board


Edward J. Babbitt	Director, Secretary


Jill T. McGruder	Director, President and Chief Executive Officer


Jonathan D. Niemeyer	Director


Donald J. Wuebbling	Director

Officers:


John F. Barrett	Director, Chairman of the Board


Jill T. McGruder	Director, President and Chief Executive Officer


Edward J. Babbitt	Director, Secretary


Roger M. Lanham	Senior Vice President and Co-Chief Investment Officer


Brendan M. White	Senior Vice President and Co-Chief Investment Officer


Karen A. Chamberlain	Senior Vice President and Chief Information Officer


Kevin L. Howard	Senior Vice President and General Counsel


Daniel W. Harris	Senior Vice President and Chief Actuary


Mark E. Caner	Senior Vice President


Daniel J. Downing	Senior Vice President


Lisa B. Fangman	Senior Vice President


Phillip E. King	Senior Vice President and Auditor


David T. Henderson	Senior Vice President and Chief Risk Officer


Bradley J. Hunkler	Senior Vice President and Chief Financial Officer


James J. Vance	Senior Vice President and Treasurer


Wade M. Fugate	Vice President and Controller


Bruce W. Maisel	Vice President and Chief Compliance Officer


Michael S. Speas	Vice President and Chief Information Security Officer


Aaron J. Wolf	Vice President and Chief Underwriter


Jay V. Johnson	Vice President and Assistant Treasurer


Terrie A. Wiedenheft	Vice President


Paul M. Kruth	Vice President


Daniel R. Larsen	Vice President


Denise L. Sparks	Vice President


Robert F. Noschang	Assistant Vice President


Brian A. Eichhold	Assistant Vice President


Donald P. Myers	Assistant Vice President


Ryan K. Richey	Assistant Vice President


Andrew P. Shull	Assistant Vice President


Jacob C. Steuber	Assistant Vice President


James R. Murray	Assistant Vice President


John S. Musgrove	Assistant Vice President and Assistant Treasurer


Cheryl J. Stotts	Assistant Vice President and Assistant Treasurer


Kathleen A. Cornelius	Assistant Treasurer


Timothy D. Speed	Assistant Treasurer


Rebecca L. Deppen	Manager, Annuity New Business


Sharon A. Cummings	Licensing Officer


Brenda L. Elliott	Manager, Licensing

INT VAROOM II April 2019

*The principal business address for the above is 400 Broadway, Cincinnati, Ohio 45202.


Item 26.	Persons Controlled by or Under Common Control with Integrity or Registrant



SEC Integrity
Affiliate	State	Entity Abb	Ownership	Type of Business
1373 Lexington Road Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC; 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
2758 South Main SPE, LLC	OH	LLC	100% owned by The Western and Southern Life Insurance Company	ownership and operation of real estate
309 Holding LLC	DE	LLC	97% owned by The Western and Southern Life Insurance Company, 1% owned by W&S Real Estate Holdings, Inc. and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
506 Phelps Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
82 Flats, LLC	IN	LLC	64% owned by Flats Apartments Investor Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Airport Exchange Hotel Partners	KY	GP	74% owned by WS Airport Exchange GP, LLC; 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Allian Tax Credit Fund 92 LP	CA	LP	13.4% limited partnership interest owned by The Lafayette Life Insurance Company	real estate ownership entity(ies)
Alta Mercer Crossing, LLC	DE	LLC	50% owned by Wood Mercer Crossing, LLC, 49% owned by Mercer Crossing Investor Holdings, LLC, and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Alta Stony Point, LLC	DE	LLC	49% owned by Stony Investor Holdings, LLC; 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Apex Housing Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Apex Louisville, LLC	KY	LLC	64% owned by Apex Housing Investor Holdings, LLC; 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Arvada Kipling Housing Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Ascent Plainfield, LLC	IN	LLC	64% owned by Stout Metro Housing Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Axis JV, LLC	KY	LLC	64% owned by 1373 Lexington Road Investor Holdings, LLC; 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Axis Louisville, LLC	KY	LLC	100% owned by Axis JV, LLC	ownership and operation of real estate
Beardsley Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Belle Haven Apts, LLC	DE	LLC	Owned 100% owned by Fore Eagle JV, LLC	real estate ownership entity(ies)
Belle Housing Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and Eagle Realty Investments, Inc. 2%	real estate ownership entity(ies)
BP Summerville Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Brickyard Apartments, LLC	DE	LLC	54% owned by BY Apartment Investor Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Brickyard Investments, LLC	DE	LLC	100% owned by Brickyard Apartments, LLC	ownership and operation of real estate

INT VAROOM II April 2019



Buckeye Venture Partners, LLC	OH	LLC	60% owned by Fort Washington Investment Advisors, Inc. (FWIA); 40% owned by Peppertree Partners, LLC	private equity fund management
BVP NEO, LLC	OH	LLC	100% owned by Fort Washington Investment Advisors, Inc.	private equity fund management
BY Apartment Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Canal Senate Apartments, LLC	IN	LLC	100% owned by W&S Real Estate Holdings, LLC	ownership and operation of real estate
Cape Barnstable Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Carmel Holdings, LLC	OH	LLC	99% owned by W&S Real Estate Holdings, LLC; 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Carmel Hotel Investor, LLC	OH	LLC	100% owned by Carmel Holdings, LLC	real estate ownership entity(ies)
Carmel Hotel, LLC	IN	LLC	99% owned by Carmel Hotel Investor, LLC; 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Carthage Senior Housing, Ltd.	OH	LLC	98% owned by W&S Real Estate Holdings, LLC; 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
CCA CBD Cincinnati LLC	OH	LLC	100% owned by 309 Holding, LLC	ownership and operation of real estate
Cedar Park Senior Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Cenizo Apartments Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Centreport Hotel LLC	TX	LLC	75% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Centreport Partners LP	TX	LP	25.25% owned by The Western and Southern Life Insurance Company; 49% owned by WSLR Dallas LLC, 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Chattanooga Southside Housing Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Chestnut Healthcare Partners, L.P.	DE	LP	20% limited partnership interest owned by The Western and Southern Life Insurance Company	real estate ownership entity(ies)
Choo Choo Residences, LLC	DE	LLC	49% owned by Chattanooga Southside Apartments Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Cincinnati CBD Holdings, LLC	OH	LLC	100% owned by W&S Real Estate Holdings, LLC	ownership and operation of real estate
Cinnaire Fund for Housing Limited Partnership 31	MI	LP	16.7% limited partnership interest owned by Columbus Life Insurance Company	real estate ownership entity(ies)
Cleo Residences, LLC	DE	LLC	49% owned by Gallatin Eastland Investor Holdings, LLC; 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Cleveland East Hotel, LLC	OH	LLC	99% owned by WSALD CEH, LLC; 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Columbus Life Insurance Company	OH	Corp	100% owned by The Western and Southern Life Insurance Company
Concorde Circle Apartments, LLC	DE	LLC	49% owned by W&S Real Estate Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Country Place Associates	OH	GP	90% owned by WS Country Place GP, LLC; 10% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Countryside-Alexander Investments, LLC	FL	LLC	69% Golf Countryside Investor Holdings, LLC and 1% Eagle Realty Investments, Inc.	ownership and operation of real estate

INT VAROOM II April 2019



Cove Housing Investor Holdings, LLC	OH	LLC	98% W&S Real Estate Holdings, LLC and 2% Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Crabtree Apartments, LLC	TX	LLC	59% owned by Crabtree Commons Apts Investor Holdings, LLC (W&S) and 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Crabtree Commons Apts Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Cranberry NP Hotel Company, LLC	PA	LLC	99% owned by NP Cranberry Hotel Investor LLC; 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Crossings Apartments Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Curve Luxury Apartments Investors, LLC	DE	LLC	59% owned by MC Investor Holdings, LLC; 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Curve Luxury Apartments, LLC	AZ	LLC	100% owned by Curve Luxury Apartments Investors, LLC	ownership and operation of real estate
Dallas City Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Day Hill Road Land LLC	CT	LLC	74% owned by W&S Real Estate Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Daybreak Parkway Fee Owner, LLC	DE	LLC	100% owned by Daybreak Parkway Land Partners, LLC	ownership and operation of real estate
Daybreak Parkway Land Partners, LLC	DE	LLC	64% owned by Crossings Apartments Holdings, LLC; 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Delco Lofts, LLC	OH	LLC	99% owned by Patterson at First Investor Holdings, LLC	ownership and operation of real estate
Domain at Dunvale, LLC	TX	LLC	49% owned by Dunvale Investor Holdings, LLC; 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Dublin Hotel LLC	OH	LLC	25% owned by The Western and Southern Life Insurance Company, 49% owned by WSLR Columbus LLC, 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Dunvale Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Dwell at Legacy, LLC	TX	LLC	50% owned by Sonterra Legacy Investor Holdings, LLC	ownership and operation of real estate
Eagle Realty Capital Partners, LLC	OH	LLC	100% Eagle Realty Group, LLC	investment advisor
Eagle Realty Group, LLC	OH	LLC	100% owned by Western & Southern Investment Holdings, LLC	real estate holding company
Eagle Realty Investments, Inc. (ERI)	OH	Corp	100% owned by Eagle Realty Group, LLC	real estate ownership entity(ies)
Eagle Rose Apartment Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Eagle Rose Land Partners, LLC	DE	LLC	24% owned by Eagle Rose Apartment Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Eagle Rose Owner, LLC	DE	LLC	100% owned by Eagle Rose Land Partners, LLC	ownership and operation of real estate
East Denver Investor Holdings, LLC	OH	LLC	76.0946% owned by W&S Real Estate Holdings, LLC; 1.5529% owned by Eagle Realty Investments, Inc	real estate ownership entity(ies)
Elan Dallas City Lights GP, LLC	DE	LLC	100% owned by Elan Dallas City Lights, LLC	real estate ownership entity(ies)

INT VAROOM II April 2019



Elan Dallas City Lights Limited Partner, LP	DE	LLC	100% owned by Elan Dallas City Lights, LLC; 0% owned by Elan Dallas City Lights GP, LLC	real estate ownership entity(ies)
Elan Dallas City Lights Owner, LP	DE	LP	99% owned by Elan Dallas City Lights Limited Partner, LP; 1% owned by Elan Dallas City Lights GP, LLC	ownership and operation of real estate
Elan Dallas City Lights, LLC	DE	LLC	59% owned by Dallas City Investor Holdings, LLC; 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Elan Kennedy Flats, LLC	DE	LLC	59% owned by One Kennedy Housing Investor Holdings, LLC; 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
EMF DT SA, LLC (2017) (Encore River Walk)	DE	LLC	100% owned by EMF River Walk Investments, LLC	ownership and operation of real estate
EMF River Walk Investments, LLC	DE	LLC	54% owned by South Flores Housing Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
EP/WSE Glendale Venture, LLC	DE	LLC	49% owned by Beardsley Investor Holdings, LLC (OH) and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
FDC Siena JV, LLC	DE	LLC	69% owned by Siena Investor Holdings, LLC; 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Flats at Springhurst LLC	KY	LLC	100% owned by Springhurst JV, L.L.C.	ownership and operation of real estate
Flats Crossing Investment, LLC	OH	LLC	100% owned by Flats Apartments Investor Holdings, LLC	real estate ownership entity(ies)
Flats Springhurst Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Fore Eagle JV, LLC	DE	LLC	69% owned by Belle Housing Investor Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Forsyth Halcyon AA Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Fort Washington Capital Partners, LLC (FWCP)	DE	LLC	100% owned by Fort Washington Investment Advisors, Inc.	managing partner for numerous private equity funds
Fort Washington Emerging Market Debt LLC	DE	LLC	Managing Member is Fort Washington Fixed Income LLC	fixed income
Fort Washington Fixed Income LLC	DE	LLC	100% owned by Fort Washington Investment Advisors, Inc.	private fixed income fund
Fort Washington Full Discretion Fixed Income LLC	DE	LLC	Managing Member Fort Washington Fixed Income LLC and investors include The Western and Southern Life Insurance Company	managing member for private fixed income fund
Fort Washington High Yield Investors II, LLC	DE	LLC	managing member is FWCP	private fixed income fund
Fort Washington High Yield Investors LLC	DE	LLC	managing member is FWCP	private fixed income fund
Fort Washington Investment Advisors, Inc. (FWIA)	OH	Corp	100% owned by Western & Southern Investment Holdings, LLC	registered investment adviser
Fort Washington Private Equity Investors II, L.P.	DE	LP	general partner is FWCP and investors include The Western and Southern Life Insurance Company	private equity fund
Fort Washington Private Equity Investors III, L.P.	DE	LP	general partner is FWCP and investors include The Western and Southern Life Insurance Company	private equity fund

INT VAROOM II April 2019



Fort Washington Private Equity Investors IV, L.P.	DE	LP	general partner is FWCP and investors include The Western and Southern Life Insurance Company	private equity fund
Fort Washington Private Equity Investors IX, L.P.	DE	LP	general partner is FWPEI IX GP, LLC and investors include The Western and Southern Life Insurance Company	private equity fund
Fort Washington Private Equity Investors IX-B, L.P.	DE	LP	General Partner is FWPEI IX GP, LLC and The Western and Southern Life Insurance Company is the sole limited partner	private equity fund
Fort Washington Private Equity Investors IX-K, L.P.	DE	LP	general partner is FWPEI IX GP, LLC	private equity fund
Fort Washington Private Equity Investors V, L.P.	DE	LP	general partner is FWPEI V GP, LLC and investors include The Western and Southern Life Insurance Company	private equity fund
Fort Washington Private Equity Investors V-B, L.P.	DE	LP	general partner is FWPEI V GP, LLC and investors include The Western and Southern Life Insurance Company	private equity fund
Fort Washington Private Equity Investors VI, L.P.	DE	LP	general partner is FWPEI VI GP, LLC and investors include The Western and Southern Life Insurance Company	private equity fund
Fort Washington Private Equity Investors VII, L.P.	DE	LP	general partner is FWPEI VII GP, LLC and investors include The Western and Southern Life Insurance Company	private equity fund
Fort Washington Private Equity Investors VIII, L.P.	DE	LP	general partner is FWPEI VIII GP, LLC and investors include The Western and Southern Life Insurance Company	private equity fund
Fort Washington Private Equity Investors VIII-B, L.P.	DE	LP	General Partner is FWPEI VIII GP, LLC and The Western and Southern Life Insurance Company is the sole limited partner	private equity fund
Fort Washington Private Equity Investors V-VC, L.P.	DE	LP	general partner is FWPEI V GP, LLC and investors include The Western and Southern Life Insurance Company	private equity fund
Fort Washington Private Equity Investors X, L.P.	DE	LP	general partner is FWPEI X GP, LLC and investors include The Western and Southern Life Insurance Company	private equity fund
Fort Washington Private Equity Investors X-B, L.P.	DE	LP	general rartner is FWPEI X GP, LLC and The Western and Southern Life Insurance Company is the sole limited partner	private equity fund
Fort Washington Private Equity Opportunities Fund II, L.P.	DE	LP	General Partner is FWPEO II GP, LLC and The Western and Southern Life Insurance Company is an investor	private equity fund
Fort Washington Private Equity Opportunities Fund III, L.P.	DE	LP	General Partner is FWPEO III GP, LLC and The Western and Southern Life Insurance Company is an investor	private equity fund
Fort Washington Private Equity Opportunities Fund III-B, L.P.	DE	LP	General Partner is FWPEO III GP, LLC and The Western and Southern Life Insurance Company is the sole limited partner	private equity fund
Fort Washington Private Equity Small Market Investors X-S, L.P.	DE	LP	general partner is FWPEI X GP, LLC and investors include The Western and Southern Life Insurance Company	private equity fund
Frontage Lodging Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
FWPEI IX GP, LLC	DE	LLC	100% owned by Fort Washington Investment Advisors, Inc.	general partner of Fund IX
FWPEI V GP, LLC	DE	LLC	100% owned by Fort Washington Investment Advisors, Inc.	general partner of the three private equity funds
FWPEI VI GP, LLC	DE	LLC	100% owned by Fort Washington Investment Advisors, Inc.	general partner of Fund VI

INT VAROOM II April 2019



FWPEI VII GP, LLC	DE	LLC	100% owned by Fort Washington Investment Advisors, Inc.	general partner of Fund VII
FWPEI VIII GP, LLC	DE	LLC	100% owned by Fort Washington Investment Advisors, Inc.	general partner of Fund VIII
FWPEI X GP, LLC	DE	LLC	100% owned by Fort Washington Investment Advisors, Inc.	general partner of Fund X
FWPEO II GP, LLC	DE	LLC	100% owned by Fort Washington Investment Advisors, Inc.	private equity fund management
FWPEO III GP, LLC	DE	LLC	100% owned by Fort Washington Investment Advisors, Inc.	private equity fund management
Gallatin Eastland Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Gateway at Arvada Ridge, LLC	DE	LLC	35.39% owned by Arvada Kipling Housing Holdings, LLC and 0.72% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Gerber Life Insurance Company	NY	Corp	100% owned by The Western and Southern Life Insurance Company
Glendale Beardsley, LLC	DE	LLC	100% owned by EP/WSE Glendale Venture, LLC (DE)	ownership and operation of real estate
Golf Countryside Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Golf Sabal Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Great Lakes Capital Fund for Housing LP 30	MI	LP	13.5% limited partnership interest owned by The Lafayette Life Insurance Company	real estate ownership entity(ies)
Greenwood Reserve Apartments, LLC	KS	LLC	64% owned by Olathe Apartments Investor Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Grelot Cody Apartments, LLC	OH	LLC	100% owned by Vinings Trace, LLC	real estate ownership entity(ies)
GS Beach Club, LLC	DE	LLC	76.5% owned by Winkler Extension Apartments Investor, LLC	real estate ownership entity(ies)
GS Lakeline AA Apartments, LLC	DE	LLC	49% owned by Cedar Park Senior Investor Holdings, LLC (OH) and 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
GS McFarland AA Apartments, LLC	DE	LLC	49% owned by Forsyth Halcyon AA Investor Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.
GS Short Pump AA Apartments Owner, LLC	DE	LLC	100% owned by GS Short Pump AA Apartments, LLC	ownership and operation of real estate
GS Short Pump AA Apartments, LLC	DE	LLC	49% owned by Three Chopt AA Investor Holdings, LLC; and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
GS Yorktown Apartments, LP	DE	LP	59% owned by YT Crossing Apartments Investor, LLC and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Heartis Venice JV, LLC	DE	LLC	49% owned by Tamiami Senior Investor Holdings, LLC (OH) and 1% owned Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Heartis Venice, LLC	DE	LLC	100% owned by Heartis Venice JV, LLC	ownership and operation of real estate
Houston Reverie, LLC	TX	LLC	59% owned by River Hollow Investor Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
IFS Financial Services, Inc. (IFS)	OH	Corp	100% owned by Western-Southern Life Assurance Company (Western-Southern Life Assurance Company)	real estate ownership entity(ies)

INT VAROOM II April 2019



Insurance Profillment Solutions, LLC	OH	LLC	100% owned by The Western and Southern Life Insurance Company	insurance marketing services
IR Mall Associates, Ltd.	FL	LP	49.50% owned by The Western and Southern Life Insurance Company	ownership and operation of real estate
IR Mall Company, L.C.	FL	LLC	50% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Jacksonville Salisbury Apartment Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
JLB Southpark Apartments LLC	DE	LLC	49% owned by SP Charlotte Apts Investor Holdings, LLC; 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
KCWSE Palmetto Pointe, LLC	DE	LLC	64% owned by Cenizo Apartments Investor Holdings, LLC; and 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Keller Hicks Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Kissimmee Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
LaCenterra Apartments Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
LaCenterra Apartments, LLC	TX	LLC	59% owned by LaCenterra Apartments Investor Holdings, LLC (WS) and 1% owned Eagle Realty Investments, Inc.	ownership and operation of real estate
LaFrontera Hotel LLC	TX	LLC	100% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
LaFrontera Lodging Partners LP	OH	LP	99% owned by W&S Real Estate Holdings, LLC	ownership and operation of real estate
Lennox Zionsville Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
LeRoy Glen Investment, LLC	OH	LLC	100% owned by The Western and Southern Life Insurance Company	real estate ownership entity(ies)
Linthicum Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
LLIA, Inc.	OH	Corp	100% owned by The Lafayette Life Insurance Company	general insurance agency
Lookout Corporate Center	KY	JVGP	50% owned by WS Lookout GP, LLC	ownership and operation of real estate
Lorraine Senior Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Lugano Apartments, LLC	DE	LLC	59% owned by Kissimmee Investor Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Lytle Park Inn, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Main Hospitality Holdings, LLC	OH	LLC	78.4% owned by W&S Real Estate Holdings, LLC and 1.6% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
MC Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Mercer Crossing Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Midtown Park Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Miller Creek Associates, LLC	DE	LLC	59% owned by Miller Creek Investor Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)

INT VAROOM II April 2019



Miller Creek Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and Eagle Realty Investments, Inc. 2%	real estate ownership entity(ies)
Miller Creek Residences, LLC	DE	LLC	100% owned by Miller Creek Associates, LLC	real estate ownership entity(ies)
Monterosso Apartments JV, LLC	DE	LLC	54% owned by Monterosso Housing Investor Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Monterosso Apartments, LLC	DE	LLC	100% owned by Monterosso Apartments JV, LLC	ownership and operation of real estate
Monterosso Housing Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Monterosso Housing Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
MP Dallas Development Holdings, LLC	DE	LLC	49% owned by Midtown Park Investor Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
MP Dallas Project Owner, LLC	DE	LLC	100% owned by MP Dallas Development Holdings, LLC	ownership and operation of real estate
National Integrity Life Insurance Company	NY	Corp	100% owned by ILIC
NE Emerson Edgewood, LLC	IN	LLC	60% owned by The Lafayette Life Insurance Company	real estate ownership entity(ies)
NEO Capital Fund, LP	DE	LP	General Partner is BVP NEO, LLC	private equity fund
North Pittsburgh Hotel LLC	PA	LLC	99% owned by WSALD NPH, LLC; 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Northeast Cincinnati Hotel LLC	OH	LLC	25% owned by The Western and Southern Life Insurance Company, 49% owned by WSLR Cincinnati LLC, 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
NP Cranberry Hotel Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC, 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
NP Cranberry Hotel Investor, LLC	OH	LLC	100% owned by NP Cranberry Hotel Holdings, LLC	real estate ownership entity(ies)
Olathe Apartments Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
One Kennedy Housing Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
OTR Housing Associates, L.P.	OH	LP	98% owned by The Western and Southern Life Insurance Company; 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
OTR Redevelopment Group, LLC	OH	LLC	100% owned by OTR Walnut Housing, Ltd.	real estate ownership entity(ies)
OTR Transitional Housing, L.P.	OH	LP	99% owned by The Western and Southern Life Insurance Company	ownership and operation of real estate
OTR-Walnut Housing, Ltd.	OH	LLC	100% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Overland Apartments Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Parkside Residences, LLC	DE	LLC	54% owned by Railroad Parkside Investor Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Patterson at First Investor Holdings, LLC	OH	LLC	100% owned by Integrity Life Insurance Company	real estate ownership entity(ies)
Perimeter Development Holdings, LLC	DE	LLC	49% owned by Perimeter TC Investor Holdings, LLC; 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)

INT VAROOM II April 2019



Perimeter Project Owner, LLC	DE	LLC	100% Perimeter Development Holdings, LLC	ownership and operation of real estate
Perimeter TC Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Pleasanton Hotel Holding Company LLC	DE	LLC	69% owned by Pleasanton Hotel Investor Holdings, 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Pleasanton Hotel Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Pleasanton Project Owner, LLC	DE	LLC	100% owned by Pleasanton Hotel Holding Company LLC	ownership and operation of real estate
Portiva Residences, LLC	DE	LLC	49% Jacksonville Salisbury Apartment Holdings, LLC and 1% Eagle Realty Investments, Inc.	ownership and operation of real estate
Prairiefire Apartments II, LLC	KS	LLC	100% owned by Prairiefire Apartments, LLC	ownership and operation of real estate
Prairiefire Apartments, LLC	KS	LLC	64% owned by Overland Apartments Investor Holdings, LLC; 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Price Road Hotel LLC	DE	LLC	64% owned by Price Willis Lodging Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Price Willis Lodging Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Queen City Square Development I, LLC	OH	LLC	100% owned by Eagle Realty Group, LLC	operation of real estate
Queen City Square, LLC	OH	LLC	99.75% owned to The Western and Southern Life Insurance Company; .25% Eagle Realty Investments, Inc.	ownership and operation of real estate
R4 Housing Partners IX LP	DE	LLC	14.7% limited partnership interest owned by The Lafaye Insurance Company	real estate ownership entity(ies)
R4 Housing Partners V LP	DE	LP	9.3% limited partnership interest owned by The Lafayette Life Insurance Company	real estate ownership entity(ies)
R4 Housing Partners VI LP	DE	LP	16.7% limited partnership interest owned by The Lafayette Life Insurance Company	real estate ownership entity(ies)
Railroad Parkside Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Randolph Tower Affordable Investment Fund, LLC	DE	LLC	99.99% owned by The Western and Southern Life Insurance Company	real estate ownership entity(ies)
Revel Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Ridge at Robinson Apartments, LLC	DE	LLC	59% owned by Settlers Ridge Robinson Investor Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
River Hollow Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Russell Bay Apartment Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Russell Bay Fee Owner LLC	DE	LLC	100% owned by Russell Bay Land Partners LLC	ownership and operation of real estate
Russell Bay Land Partners LLC	DE	LLC	64% owned by Russell Bay Apartment Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Sabal-Alexander Investments, LLC	FL	LLC	69% Golf Sabal Investor Holdings, LLC and 1% Eagle Realty Investments, Inc.	ownership and operation of real estate
San Tan Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)

INT VAROOM II April 2019



Sarasota Property Owner, LLC	DE	LLC	100% owned by Senior Living at Sarasota, LLC	ownership and operation of real estate
Senior Living at Sarasota, LLC	DE	LLC	49% owned by Lorraine Senior Investor Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Settlers Ridge Robinson Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Seventh and Culvert Garage, LLC	OH	LLC	100% owned by W&S Real Estate Holdings, LLC	real estate ownership entity(ies)
Shelbourne Campus Properties, LLC	DE	LLC	54% owned by Shelbourne Housing Investor, LLC; 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Shelbourne Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC; 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Shelbourne Housing Investor, LLC	OH	LLC	100% owned by Shelbourne Holdings, LLC	real estate ownership entity(ies)
Siena Medical District, LLC	DE	LLC	100% owned by FDC Siena JV, LLC	real estate ownership entity(ies)
Sixth and Race Development, LLC	OH	LLC	71% owned by Race Street Development, Ltd., 29% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Sixth and Saratoga NW, LLC	KY	LLC	100% owned by W&S Real Estate Holdings, LLC	ownership and operation of real estate
Skye Apartments Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Skye at Arbor Lakes II, LLC	DE	LLC	59% owned by Skye Apartments Investor Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Skye at Arbor Lakes, LLC	DE	LLC	69% owned by Skye Apartments Investor Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Skye at Maple Grove II, LLC	DE	LLC	100% owned by Skye at Arbor Lakes II, LLC	real estate ownership entity(ies)
Skye at Maple Grove, LLC	DE	LLC	100% owned by Skye at Arbor Lakes, LLC	ownership and operation of real estate
Skyport Hotel LLC	KY	LLC	25% owned by The Western and Southern Life Insurance Company, 49% owned by WSLR Skyport LLC; 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Sonterra Legacy Investor Holdings, LLC	OH	LLC	100% owned by Trust dated August 25, 2014 for benefit of The Western and Southern Life Insurance Company Separate Account A (Eagle Realty Group, LLC, Trustee)	real estate ownership entity(ies)
South Flores Housing Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
South Kirkman Apartment Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
South Kirkman Fee Owner LLC	DE	LLC	100% owned by South Kirkman Land Partners LLC	ownership and operation of real estate
South Kirkman Land Partners LLC	DE	LLC	64% owned by South Kirkman Apartment Holdings, LLC (OH) and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Southside Tunnel Apartments Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Southside Works City Apartments, LLC	DE	LLC	49% owned by Southside Tunnel Apartments Investor Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)

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SP Charlotte Apts Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Springhurst JV, L.L.C.	KY	LLC	64% owned by Flats Springhurst Investor Holdings, LLC; and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
SPX Holding LLC	OH	LLC	50% owned by W&SFG	Airplane ownership/leasing
SSW Jet Ltd	OH	LLC	50% owned by W&SFG	Airplane ownership/leasing
Stony Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Stout Metro Housing Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Sundance Hotel Investor, LLC	OH	LLC	100% owned by Sundance LaFrontera Holdings, LLC	real estate ownership entity(ies)
Sundance Hotel, LLC	DE	LLC	64% owned by Sundance Hotel Investor, LLC and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Sundance LaFrontera Holdings, LLC	OH	LLC	98% owned by The Western and Southern Life Insurance Company and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Tamiami Senior Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
The Cove Apartments, LLC	DE	LLC	49% owned by Cove Housing Investor Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
The Cove JV, LLC	DE	LLC	100% owned by The Cove Apartments, LLC	real estate ownership entity(ies)
The Flats at San Tan, LLC	TX	LLC	49% owned by San Tan Investor Holdings, LLC; 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
The Lafayette Life Insurance Company	OH	Corp	100% owned by Western & Southern Financial Group, Inc. (WSFG)
The Ohio Capital Fund LLC	OH	LLC	Managed by Buckeye Venture Partners, LLC	state funded private equity fund
The Western and Southern Life Insurance Company (WSLIC)	OH	Corp	100% owned by WSFG
Three Chopt AA Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Timacuan Apartment Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Timacuan Fee Owner LLC	DE	LLC	100% owned by Timacuan Land Partners LLC (DE)	ownership and operation of real estate
Timacuan Land Partners LLC	DE	LLC	64% owned by Timacuan Apartment Holdings, LLC (OH) and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Touchstone Advisors, Inc.	OH	Corp	100% owned by IFS Financial Services, Inc.	registered investment adviser
Touchstone Securities, Inc.	NE	Corp	100% owned by IFS Financial Services, Inc. Financial Services, Inc.	securities broker-dealer
Trevi Apartment Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Trevi Fee Owner, LLC	DE	LLC	100% Trevi Land Partners, LLC	ownership and operation of real estate
Trevi Land Partners, LLC	DE	LLC	64% Trevi Apartment Holdings, LLC; 1% Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Tri-State Growth Capital Fund I, L.P.	DE	LP	general partner is Tri-State Ventures, LLC and investors include The Western and Southern Life Insurance Company	private equity fund

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Tri-State Growth Capital Fund II, L.P.	DE	LP	general partner is Tri-State Ventures II, LLC and investors include The Western and Southern Life Insurance Company	private equity fund
Tri-State Ventures II, LLC	DE	LLC	100% owned by Fort Washington Investment Advisors, Inc.	private equity fund
Tri-State Ventures, LLC	DE	LLC	100% owned by Fort Washington Investment Advisors, Inc.	private equity fund
UGR Holdings, LLC	DE	LLC	49% owned by University Shade Investor Holdings, LLC (OH) and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Union Centre Hotel LLC	OH	LLC	25% owned by The Western and Southern Life Insurance Company; 49% owned by WSLR Union LLC; 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
University Grove Residences, LLC	DE	LLC	100% owned by UGR Holdings, LLC (DE)	ownership and operation of real estate
University Shade Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Uptown Denver Apartments, LLC	DE	LLC	49% owned by East Denver Investor Holdings, LLC; 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Vail Hotel Holdings ESHV, LLC	DE	LLC	74% owned by Frontage Lodging Investor Holdings, LLC; 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Vail Hotel Owner ESHV, LLC	DE	LLC	100% owned by Vail Hotel Holdings ESHV, LLC	ownership and operation of real estate
Vernazza Apartments, LLC	DE	LLC	54% owned by Vernazza Housing Investor Holdings and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Vernazza Housing Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Vinings Trace, LLC	IN	LLC	99% owned by The Western and Southern Life Insurance Company, 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
W Apts Investor Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings, LLC and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
W Flats Residences, LLC	DE	LLC	66.5% owned by W Apts Investor Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
W&S Brokerage Services, Inc.	OH	Corp	100% owned by Western-Southern Life Assurance Company	investment advisor and broker dealer
W&S Financial Group Distributors, Inc.	OH	Corp	100% owned by Western-Southern Life Assurance Company	general insurance agency
W&S Real Estate Holdings, LLC	OH	LLC	100% owned by The Western and Southern Life Insurance Company	real estate ownership entity(ies)
Warm Springs Apartment Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Warm Springs Fee Owner LLC	DE	LLC	100% owned by Warm Springs Land Partners LLC	ownership and operation of real estate
Warm Springs Land Partners LLC	DE	LLC	64% owned by Warm Springs Apartment Holdings, LLC and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
West Crescent Venture Partners LLC	DE	LLC	49% owned by Revel Investor Holdings, LLC, and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Western & Southern Agency, Inc.	OH	Corp	100% owned by The Western and Southern Life Insurance Company	general insurance agency
Western & Southern Financial Fund Inc	OH	NP Corp		charitable giving

INT VAROOM II April 2019



Western & Southern Financial Group, Inc. (WSFG)	OH	Corp	100% owned by WSMHC	holding company
Western & Southern Investment Holdings, LLC	OH	LLC	100% owned by The Western and Southern Life Insurance Company	real estate ownership entity(ies)
Western & Southern Mutual Holding Company (WSMHC)	OH	Corp	Mutual Insurance Holding Company
Western-Southern Life Assurance Company (WSLAC)	OH	Corp	100% owned by The Western and Southern Life Insurance Company
Westhouse Residences, LLC	DE	LLC	49% owned by Keller Hicks Investor Holdings, LLC (OH) and 1% owned by Eagle Realty Investments, Inc.	ownership and operation of real estate
Winkler Extension Apartments Investor, LLC	OH	LLC	100% owned by Eagle Realty Group, LLC, as Trustee under a Trust Agreement dated November 30, 2009 for the benefit of The Western and Southern Life Insurance Company Separate Account A	real estate ownership entity(ies)
WL Apartment Holdings, LLC	OH	LLC	98% owned by W&S Real Estate Holdings and 2% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
WL Houston Parkway, LLC	TX	LLC	55% owned by WL Apartment Holdings and 1% owned by Eagle Realty Investments, Inc.	real estate ownership entity(ies)
Wright Executive Hotel Limited Partners	OH	LP	60.50% owned by The Western and Southern Life Insurance Company; 0.61% owned by WS Wright Hotel GP, LLC	real estate ownership entity(ies)
WS Airport Exchange GP, LLC	OH	LLC	100% owned by W&S Real Estate Holdings, LLC	real estate ownership entity(ies)
WS Country Place GP, LLC	OH	LLC	100% owned by W&S Real Estate Holdings, LLC	real estate ownership entity(ies)
WS Lookout JV, LLC	OH	LLC	100% owned by The Western and Southern Life Insurance Company	real estate ownership entity(ies)
WS Wright Hotel GP, LLC	OH	LLC	100% owned by The Western and Southern Life Insurance Company	real estate ownership entity(ies)
WSA Commons, LLC	GA	LLC	50% owned by The Western and Southern Life Insurance Company	ownership and operation of real estate
WSALD CEH, LLC	OH	LLC	100% owned by W&S Real Estate Holdings, LLC	real estate ownership entity(ies)
WSALD NPH, LLC	OH	LLC	100% owned by W&S Real Estate Holdings, LLC	real estate ownership entity(ies)
WSFG WG Aurora IL, LLC	OH	LLC	100% owned by Country Place Associates	ownership and operation of real estate
WSFG WG Charlotte NC, LLC	OH	LLC	100% owned by Country Place Associates	ownership and operation of real estate
WSFG WG Columbus OH, LLC	OH	LLC	100% owned by Vinings Trace, LLC	ownership and operation of real estate
WSFG WG Holding RI, LLC	OH	LLC	100% owned by Country Place Associates	ownership and operation of real estate
WSFG WG Providence RI, LLC	OH	LLC	100% owned by Country Place Associates	ownership and operation of real estate
WSFG WG Stallings NC, LLC	OH	LLC	100% owned by Vinings Trace, LLC	ownership and operation of real estate
WSL Partners, L.P.	DE	LP	general partner is FWCP and investors include The Western and Southern Life Insurance Company	private equity fund
WSLR Birmingham LLC	OH	LLC	100% owned by WSLR LLC	real estate ownership entity(ies)

INT VAROOM II April 2019



WSLR Cincinnati LLC	OH	LLC	100% owned by WSLR LLC	real estate ownership entity(ies)
WSLR Columbus LLC	OH	LLC	100% owned by WSLR LLC	real estate ownership entity(ies)
WSLR Dallas LLC	OH	LLC	100% owned by WSLR LLC	real estate ownership entity(ies)
WSLR Hartford LLC	OH	LLC	100% owned by WSLR LLC	real estate ownership entity(ies)
WSLR Holdings LLC	DE	LLC	100% owned by The Western and Southern Life Insurance Company	real estate ownership entity(ies)
WSLR LLC	DE	LLC	100% owned by WSLR Holdings LLC	real estate ownership entity(ies)
WSLR Skyport LLC	OH	LLC	100% owned by WSLR LLC	real estate ownership entity(ies)
WSLR Union LLC	OH	LLC	100% owned by WSLR LLC	real estate ownership entity(ies)

Item 27. Number of Contract Owners

As of April 24, 2019, 2,179 qualified and non-qualified contracts issued pursuant to this registration statement were outstanding.

Item 28. Indemnification

Integrity's By-Laws provide, in Article V, Section 5.1 provides:

To the extent permitted by the laws of the State of Ohio, subject to all applicable requirements thereof:

(a) The Corporation shall indemnify or agree to indemnify any person who was or is a party or is threatened to be made a party, to any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative, other than an action by or in the right of the Corporation, by reason of the fact that he is or was a Director, officer, employee, or agent of the Corporation or is or was serving at the request of the Corporation as a Director, trustee, officer, employee, or agent of another corporation, domestic or foreign, non-profit or for profit, partnership, joint venture, trust, or other enterprise, against expenses, including attorney's fees, judgments, fines, and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit, or proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Corporation, and with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. The termination of any action, suit, or proceeding by judgment, order, settlement, or conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Corporation and, with respect to any criminal action or proceeding, he had reasonable cause to believe that his conduct was unlawful.

(b) The Corporation shall indemnify or agree to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending, or completed action or suit by or in the right of the Corporation to procure a judgment in its favor by reason of the fact that he is or was a Director, officer, employee, or agent of the Corporation, or is or was serving at the request of the Corporation as a Director, trustee, officer, employee, or agent of another corporation, domestic or foreign, non-profit or for profit, partnership, joint venture, trust, or other enterprise, against expenses, including attorney's fees, actually and reasonably incurred by him in connection with the defense or settlement of such action or suit if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Corporation, except that no indemnification shall be made in respect to any of the following:

(1) Any claim, issue, or matter as to which such person is adjudged to be liable for negligence or misconduct in the performance of his duty to the Corporation unless, and only to the extent the court of common pleas or the court in which such action or suit was brought determines upon application that, despite the adjudication of liability, but in view of all circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses as the court of common pleas or such other court shall deem proper;

(2) Any action of suit in which the only liability asserted against a Director is pursuant to Section 1701.95 of the Ohio Revised Code.

(c) To the extent that a Director, trustee, officer, employee, or agent has been successful in the merits or otherwise in defense of any action, suit, or proceeding referred to in division (a) and (b) of this Article, or in defense

INT VAROOM II April 2019

of any claim, issue or matter therein, he shall be indemnified against expenses, including attorney's fees, actually and reasonably incurred by him in connection with the action, suit, or proceeding.

(d) Any indemnification under divisions (a) and (b) of this Article, unless ordered by a court, shall be made by the Corporation only as authorized in the specific case upon the determination that indemnification of the Director, officer, employee, or agent is proper in the circumstances because he has met the applicable standard of conduct set forth in divisions (a) and (b) of this Article. Such determination shall be made as follows:

(1) By a majority vote of a quorum consisting of Directors of the Corporation who were not and are not parties to or threatened with any such action, suit, or proceeding;

(2) If the quorum described in division (d)(1) of this Article is not obtainable or if a majority vote of a quorum of disinterested Directors so directs, in a written opinion by independent legal counsel other than an attorney, or a firm having associated with it an attorney, who has been retained by or who has performed services for the Corporation or any person to be indemnified within the past five years;

(3) By the Shareholders; or

(4) By the court of common pleas or the court in which such action, suit or proceeding was brought.

Any determination made by the disinterested Directors under Article (d)(1) or by independent legal counsel under Article (d)(2) shall be promptly communicated to the person who threatened or brought the action or suit by in the right of the Corporation under (b) of this Article, and within ten days after receipt of such notification, such person shall have the right to petition the court of common pleas or the court in which such action or suit was brought to review the reasonableness of such determination.

(e) (1) Expenses, including attorney's fees, incurred by a Director in defending the action, suit, or proceeding shall be paid by the Corporation as they are incurred, in advance of the final disposition of the action, suit, or proceeding upon receipt of an undertaking by or on behalf of the Director in which he agrees to do both of the following:

(i) Repay such amount if it is proved by clear and convincing evidence in a court of competent jurisdiction that his action or failure to act involved an act or omission undertaken with deliberate intent to cause injury to the Corporation or undertaken with reckless disregard for the best interests of the Corporation;

(ii) Reasonably cooperate with the Corporation concerning the action, suit or proceeding.

(2) Expenses, including attorney's fees, incurred by a Director, officer, employee, or agent in defending any action, suit, or proceeding referred to in divisions (a) and (b) of this Article, may be paid by the Corporation as they are incurred, in advance of the final disposition of the action, suit, or proceeding as authorized by the Directors in the specific case upon receipt of an undertaking by or on behalf of the Director, officer, employee, or agent to repay such amount, if it ultimately is determined that he is not entitled to be indemnified by the Corporation.

(f) The indemnification authorized by this section shall not be exclusive of, and shall be in addition to, any other rights granted to those seeking indemnification under the Articles or the Regulations for any agreement, vote of Shareholders or disinterested Directors, or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a Director, officer, employee, or agent and shall inure to the benefit of the heirs, executors, and administrators of such a person.

(g) The Corporation may purchase and maintain insurance or furnish similar protection, including but not limited to trust funds, letters of credit, or self insurance, on behalf of or for any person who is or was a Director, officer, employee, or agent of the Corporation, or is or was serving at the request of the Corporation as a Director, officer, employee, or agent of another corporation, domestic or foreign, non-profit or for profit, partnership, joint venture, trust, or other enterprise, against any liability asserted against him and incurred by him in any such capacity, or arising out of his status as such, whether or not the Corporation would have the power to indemnify him against such liability under this section. Insurance may be purchased from or maintained with a person in whom the Corporation has a financial interest.

Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

INT VAROOM II April 2019

Item 29. Principal Underwriters

(a) Touchstone Securities, Inc. (Touchstone Securities) is the principal underwriter for Separate Account I of Integrity Life Insurance Company. Touchstone Securities also serves as an underwriter for Separate Account VUL of Integrity Life Insurance Company, Separate Account I of National Integrity Life Insurance Company, Western-Southern Life Assurance Company’s Separate Account 1, Columbus Life Insurance Company Separate Account I and for the shares of several series of Touchstone Variable Series Trust, Touchstone Strategic Trust, Touchstone Investment Trust, Touchstone Tax-Free Trust, Touchstone Institutional Funds Trust and Touchstone Funds Group Trust, each of which is affiliated with the Depositor.

(b) The names and principal business addresses* of the officers and directors of, and their positions with, Touchstone Securities, Inc. are as follows:

Directors:


James N. Clark	Director


Jill T. McGruder	Director and Chief Executive Officer


Jonathan D. Niemeyer	Director


Donald J. Wuebbling	Director

Officers:


Steven M. Graziano	President


Jill T. McGruder	Chief Executive Officer


Stephen C. Owen	Senior Vice President


Jay V. Johnson	Vice President and Treasurer


Sharon L. Karp	Vice President


Daniel R. Larsen	Vice President


Amy Fisher	Vice President


Timothy S. Stearns	Vice President


Thomas A. Shoemake	Chief Compliance Officer


Terrie A. Wiedenheft	Chief Financial Officer


Cheryl J. Stotts	Assistant Vice President and Assistant Treasurer


John S. Musgrove	Assistant Vice President and Assistant Treasurer


Kathleen A. Cornelius	Assistant Treasurer


Timothy D. Speed	Assistant Treasurer


Sarah Sparks Herron	Secretary

*The principal business address for the above is 303 Broadway, Cincinnati, Ohio 45202, unless otherwise noted.

Item 30. Location of Accounts and Records

The records required to be maintained by Section 31(a) of the Investment Company Act of 1940 and Rules 31a-1 to 31a-3 promulgated thereunder, are maintained by Integrity at 400 Broadway, Cincinnati, Ohio 45202

Item 31. Management Services

There are currently no management-related services provided to the Registrant.

Item 32. Undertakings

The Registrant hereby undertakes:


(a)	to file a post-effective amendment to this registration statement as frequently as is necessary to ensure that the audited financial statements of the Registrant, Depositor and Guarantor in the registration statement are never more than 16 months old for so long as payments under the variable annuity contracts may be accepted;


(b)	to include either (1) as part of any application to purchase a contract offered by the prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a postcard or similar written communication affixed to or included in the prospectus that the applicant can remove to send for a Statement of Additional Information;


(c)	to deliver any Statement of Additional Information and any financial statements required to be made available under this Form, including the WSLIC financial statements, promptly upon written or oral request; and


(d)	to update the registration statement if WSLIC terminates its guarantee to Integrity policyholders.

INT VAROOM II April 2019

During any time there are insurance obligations outstanding and covered by its guarantee (Guarantee) issued by WSLIC, filed as an exhibit to this registration statement, Integrity hereby undertakes to provide notice to contract owners promptly after the happening of significant events related to the Guarantee. These significant events include: (i) termination of the Guarantee that has a material adverse effect on the contract owner's rights under the Guarantee; (ii) a default under the Guarantee that has a material adverse effect on the contract owner's rights under the Guarantee; or (iii) the insolvency of WSLIC.

Pursuant to Section 26(f) of the Investment Company Act of 1940, as amended, Integrity represents that the aggregate charges under the variable annuity contract described in this Registration Statement are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by Integrity.

Integrity represents that it recognizes the requirements of Section 17(h) of the Investment Company Act of 1940, specifically that it shall not protect or purport to protect any director or officer of the Registrant or Depositor against any liability to them or to their security holders to which he would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his office.


Integrity VAROOM II	April 2019

SIGNATURES

As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant, the Depositor and the Guarantor, certify that they meet all of the requirements for effectiveness of this post-effective amendment to their Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933 and have duly caused this amendment to the Registration Statement to be signed on their behalf, in the City of Cincinnati and State of Ohio on this April 26, 2019.

SEPARATE ACCOUNT I OF

INTEGRITY LIFE INSURANCE COMPANY

(Registrant)

By: Integrity Life Insurance Company

(Depositor)



By:	/s/ Jill T. McGruder
	Jill T. McGruder, President and CEO

INTEGRITY LIFE INSURANCE COMPANY

(Depositor)



By:	/s/ Jill T. McGruder
	Jill T. McGruder, President and CEO

THE WESTERN AND SOUTHERN LIFE INSURANCE COMPANY

(Guarantor)



By:	/s/ John F. Barrett
	John F. Barrett, Chairman, President and CEO


Integrity VAROOM II	April 2019

SIGNATURES

As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Depositor has duly caused this amendment to the Registration Statement to be signed on its behalf, in the City of Cincinnati and State of Ohio on this April 26, 2019.

INTEGRITY LIFE INSURANCE COMPANY

(Depositor)



By:	/s/ Jill T. McGruder
	Jill T. McGruder, President and CEO

The following persons, in the capacities and on the dates indicated, have signed this amendment to the Registration Statement as required by the Securities Act of 1933:



PRINCIPAL EXECUTIVE OFFICER:		/s/ Jill T. McGruder
		Jill T. McGruder, President and CEO
		April 26, 2019

PRINCIPAL FINANCIAL OFFICER:		/s/ Bradley J. Hunkler
		Bradley J. Hunkler, Senior Vice President and Chief Financial Officer
		April 26, 2019

PRINCIPAL ACCOUNTING OFFICER:		/s/ Wade M. Fugate
		Wade M. Fugate, Vice President and Controller
		April 26, 2019

DIRECTORS:



/s/ John F. Barrett		/s/ Jonathan D. Niemeyer
John F. Barrett		Jonathan D. Niemeyer
April 26, 2019		April 26, 2019
/s/ Edward J. Babbitt		/s/ Donald J. Wuebbling
Edward J. Babbitt		Donald J. Wuebbling
April 26, 2019		April 26, 2019
/s/ Jill T. McGruder
Jill T. McGruder
April 26, 2019


Integrity VAROOM II	April 2019

SIGNATURES

As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Guarantor has duly caused this amendment to the Registration Statement to be signed on its behalf, in the City of Cincinnati and State of Ohio on this April 26, 2019.

THE WESTERN AND SOUTHERN LIFE INSURANCE COMPANY

(Guarantor)



By:	/s/ John F. Barrett
	John F. Barrett, Chairman, President and CEO



PRINCIPAL EXECUTIVE OFFICER:		/s/ John F. Barrett
		John F. Barrett, Chairman, President and CEO
		April 26, 2019

PRINCIPAL FINANCIAL OFFICER:		/s/ Bradley J. Hunkler
		Bradley J. Hunkler, Senior Vice President and Chief Financial Officer
		April 26, 2019

PRINCIPAL ACCOUNTING OFFICER:		/s/ Wade M. Fugate
		Wade M. Fugate, Vice President and Controller
		April 26, 2019

DIRECTORS:



/s/ John F. Barrett		/s/ Wade M. Fugate
John F. Barrett		Wade M. Fugate, Attorney-in-Fact for Jo Ann Davidson
April 26, 2019		Wade M. Fugate, Attorney-in-Fact for Jo Ann Davidson
		April 26, 2019

/s/ Wade M. Fugate		/s/ Wade M. Fugate
Wade M. Fugate, Attorney-in-Fact for James N. Clark		Wade M. Fugate, Attorney-in-Fact for Robert B. Truitt
April 26, 2019		April 26, 2019

		/s/ Wade M. Fugate
		Wade M. Fugate, Attorney-in-Fact for Thomas L. Williams
		April 26, 2019