Contents

Report of Independent Auditors			1


Audited Financial Statements - Statutory Basis
Balance Sheets - as of December 31, 2022 and 2021			4
Statements of Operations - for the years ended December 31, 2022 and 2021			6
Statements of Changes in Capital and Surplus - for the years ended December 31, 2022 and 2021			7
Statements of Cash Flows - for the years ended December 31, 2022 and 2021			8
Notes to Financial Statements			9


Supplementary Information
Report of Independent Auditors on Supplementary Information			61
Supplemental Schedule of Selected Statutory Basis Financial Data			62
Investment Risk Interrogatories			65
Summary Investment Schedule			70
Supplemental Schedule of Life and Health Reinsurance Disclosures			71
Note to Supplementary Information			73

Report of Independent Auditors

The Board of Directors and Stockholder Venerable Insurance and Annuity Company

Opinion

We have audited the statutory-basis financial statements of Venerable Insurance and Annuity Company (the Company), which comprise the balance sheets as of December 31, 2022 and 2021, and the related statements of operations, changes in capital and surplus and cash flow for the years then ended, and the related notes to the financial statements (collectively referred to as the “financial statements”).

Unmodified Opinion on Statutory Basis of Accounting

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2022 and 2021, and the results of its operations and its cash flows for the years then ended, on the basis of accounting 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 section of our report, the financial statements do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Company at December 31, 2022 and 2021, or the results of its operations or its cash flows for the years then ended.

Basis for Opinion

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

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

As described in Note 1 to the financial statements, the Company prepared these financial statements using accounting practices prescribed or permitted by the Insurance Division, Department of Commerce, of the State of Iowa, which is a basis of accounting other than accounting principles generally accepted in the United States of America. The effects on the financial statements of the variances between these statutory accounting practices described in

Note 1 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material and pervasive.

Responsibilities of Management for the Financial Statements

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

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

Auditor’s Responsibilities for the Audit of the Financial Statements

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

In performing an audit in accordance with GAAS, we:

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

•

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

•	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, no such opinion is expressed.

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

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

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

March 30, 2023

VENERABLE INSURANCE AND ANNUITY COMPANY

Balance Sheets — Statutory Basis

	December 31
	2022			2021
Admitted Assets	(In Thousands)
Cash and invested assets:
Bonds	$	8,513,944		$	8,548,520
Preferred stocks		45,310			60,491
Common stocks		112,068			124,195
Investment in and advances to subsidiaries		1,386,698			1,578,483
Mortgage loans		1,788,620			2,195,274
Contract loans		3,283			3,676
Other invested assets		406,058			670,868
Cash and short-term investments		206,621			125,942
Total cash and invested assets		12,462,602			13,307,449

Deferred and uncollected premiums		(50,342	)		(51,233	)
Accrued investment income		93,741			81,200
Reinsurance balances recoverable		61,717			141,219
Indebtedness from related parties		2,895			62,873
Federal income tax recoverable (including $0 and $0 on realized capital losses at December 31, 2022 and 2021, respectively)		56,736			52,149
Other assets		14,946			10,935
Separate account assets		18,254,229			25,372,984
Total admitted assets	$	30,896,524		$	38,977,576

The accompanying notes are an integral part of these financial statements.

VENERABLE INSURANCE AND ANNUITY COMPANY

Balance Sheets — Statutory Basis

	December 31
	2022			2021
	(In Thousands, except share amounts)
Liabilities and Capital and Surplus
Liabilities:
Policy and contract liabilities:
Life and annuity reserves	$	9,204,810		$	10,189,551
Deposit type contracts		1,128,799			928,304
Policy and contract claims		(6,692	)		(16,516	)
Total policy and contract liabilities		10,326,917			11,101,339

Interest maintenance reserve		105,483			118,014
Accounts payable and accrued expenses		1,838			9,186
Reinsurance balances		43,139			66,415
Asset valuation reserve		92,899			134,248
Net transfers from separate accounts due or accrued		(45,354	)		(43,227	)
Other liabilities		118,443			131,413
Separate account liabilities		18,254,229			25,372,984
Total liabilities		28,897,594			36,890,372

Capital and surplus:
Common stock: authorized 250,000 shares of $10 par value; 250,000 shares issued and outstanding		2,500			2,500
Special surplus funds		234,385			246,451
Surplus notes		252,109			334,879
Paid in and contributed surplus		1,160,463			1,160,463
Unassigned surplus		349,473			342,911
Total capital and surplus		1,998,930			2,087,204
Total liabilities and capital and surplus	$	30,896,524		$	38,977,576

The accompanying notes are an integral part of these financial statements.

VENERABLE INSURANCE AND ANNUITY COMPANY

Statements of Operations — Statutory Basis

	Year ended December 31
	2022			2021
	(In Thousands)
Premiums and other revenues:
Life, annuity, and accident and health premiums	$	1,502		$	(4,618,622	)
Policy proceeds and dividends left on deposit		—			26,150
Net investment income		697,904			480,810
Amortization of interest maintenance reserve		15,268			(3,284	)
Commissions, expense allowances, and reserve adjustments on reinsurance ceded		(1,378,912	)		(1,137,736	)
Other revenue		10,733			27,809
Total premiums and other revenues		(653,505	)		(5,224,873	)

Benefits paid or provided:
Annuity benefits		918,628			1,055,864
Surrender benefits and withdrawals		1,444,422			2,239,392
Interest and adjustments on contract or deposit-type funds		—			46,119
Other benefits		—			89,868
Decrease in life, annuity, and accident and health reserves		(984,696	)		(3,148,513	)
Net transfers from separate accounts		(2,398,558	)		(3,291,212	)
Total benefits paid or provided		(1,020,204	)		(3,008,482	)

Insurance expenses and other deductions:
Commissions		120,874			148,821
General expenses		73,476			97,210
Insurance taxes, licenses, and fees		3,167			3,757
Other expense (income)		10,962			(1,721,629	)
Total insurance (income) expenses and other deductions		208,479			(1,471,841	)
Gain (loss) from operations before federal income taxes and net realized capital losses		158,220			(744,550	)
Federal income tax expense		(42,421	)		(39,431	)
Gain (loss) from operations before net realized capital losses		200,641			(705,119	)
Net realized capital gain (loss)		(3,444	)		(563,814	)
Net income (loss)	$	197,197		$	(1,268,933	)

The accompanying notes are an integral part of these financial statements.

VENERABLE INSURANCE AND ANNUITY COMPANY

Statements of Changes in Capital and Surplus — Statutory Basis

	Year ended December 31
	2022			2021
	(In Thousands)
Common stock:
Balance at beginning and end of year	$	2,500		$	2,500

Surplus notes:
Balance at beginning of year		334,879			350,000
Surplus notes paid		(82,770	)		(15,121	)
Balance at end of year		252,109			334,879

Paid-in and contributed surplus:
Balance at beginning of year	$	1,160,463		$	1,240,463
Return of capital		—			(80,000	)
Balance at end of year		1,160,463			1,160,463

Special surplus funds:
Balance at beginning of year		246,451			258,517
Amortization of gain on reinsurance		(12,066	)		(12,066	)
Balance at end of year		234,385			246,451

Unassigned surplus:
Balance at beginning of year		342,911			834,348
Net income (loss)		197,197			(1,268,933	)
Change in net unrealized capital gains		(211,903	)		589,704
Change in nonadmitted assets		11,868			(517	)
Change in asset valuation reserve		41,349			258,309
Dividends to stockholder		(32,000	)		(70,000	)
Other changes in surplus	$	51		$	—
Balance at end of year		349,473			342,911

Total capital and surplus	$	1,998,930		$	2,087,204

The accompanying notes are an integral part of these financial statements.

VENERABLE INSURANCE AND ANNUITY COMPANY

Statements of Cash Flows — Statutory Basis

	Year ended December 31
	2022			2021
	(In Thousands)
Operating Activities
Premiums, policy proceeds, and other considerations received, net of reinsurance paid	$	4,372		$	1,329
Net investment income received		486,369			430,986
Commissions and expenses paid		(486,578	)		2,740
Benefits paid		(3,522,061	)		(3,258,646	)
Net transfers from separate accounts		2,397,560			3,692,570
Miscellaneous income		128,301			68,762
Net cash (used in) provided by operations		(992,037	)		937,741

Investment Activities
Proceeds from sales, maturities, or repayments of investments:
Bonds		1,404,297			4,936,089
Stocks		26,669			77,435
Mortgage loans		435,728			461,361
Other invested assets		494,553			62,982
Miscellaneous proceeds		(27,552	)		(15,720	)
Total investment proceeds		2,333,695			5,522,147

Cost of investments acquired:
Bonds		1,368,835			3,558,765
Stocks		16,500			76,683
Mortgage loans		30,852			24,454
Other invested assets		191,292			503,232
Miscellaneous applications		(10,332	)		531,958
Total cost of investments acquired		1,597,147			4,695,092

Net decrease in contract loans		393			745
Net cash provided by (used in) investment activities		736,941			827,800

Financing and Miscellaneous Activities
Other cash provided (applied):
Surplus notes		(82,770	)		(415,121	)
Capital and paid-in surplus, less treasury stock		—			(1,329,505	)
Net deposits (withdrawals) on deposit type contracts		200,495			(11,711	)
Dividends paid to stockholder		158,000			(70,000	)
Other cash provided (applied)		60,050			(600,667	)
Net cash provided by (used in) financing and miscellaneous activities		335,775			(2,427,004	)
Net increase (decrease) in cash and short-term investments		80,679			(661,463	)
Cash and short-term investments:
Beginning of year		125,942			787,405
End of year	$	206,621		$	125,942

The accompanying notes are an integral part of these financial statements.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

1.	Organization and Significant Accounting Policies

Venerable Insurance and Annuity Company ("VIAC" or the “Company”), is domiciled in the State of Iowa ("Iowa") and is a direct, wholly-owned subsidiary of Venerable Holdings, Inc. (“Venerable Holdings”), a holding company domiciled in the State of Delaware. Venerable Holdings is a direct, wholly-owned subsidiary of VA Capital Company LLC ("VA Capital"), a limited liability company domiciled in the State of Delaware.

Venerable Holdings owns all outstanding shares of the capital stock of the Company and VIAC Services Company ("VSC"), and all of the membership interest of Directed Services LLC ("DSL"). VSC, a corporation domiciled in the State of Delaware, provides services to Venerable Holdings and its subsidiaries, including the Company. DSL, a limited liability company domiciled in the State of Delaware, is a registered Broker Dealer and provides underwriting and wholesale distribution services to the Company.

The Company has two direct, wholly-owned subsidiaries, Rocky Range, Inc. ("Rocky Range") and Corporate Solutions Life Reinsurance Company ("CSLR"). Rocky Range is an insurance company domiciled in the State of Arizona that is licensed as a pure captive reinsurer by the Arizona Department of Insurance and Financial Institutions (“DIFI”).CSLR is an insurance company domiciled in the State of Delaware and operates as a reinsurance company. The Company acquired 100% of the issued and outstanding capital stock of CSLR on June 1, 2021, from Equitable Holdings, Inc. ("Equitable Holdings").

Description of Business

The Company historically offered various insurance products including immediate and deferred variable and fixed annuities, fixed indexed annuities, traditional life insurance, supplemental contracts consisting of life insurance proceeds and payout annuities for pre-retirement wealth accumulation and post-retirement income management. The Company ceased the issuance of new fixed and indexed annuity products in 2018, ceased the issuance of new variable annuity products in 2010, and ceased the issuance of new life insurance policies in 2001, placing them in run-off. New amounts may continue to be deposited as add-on premiums to certain existing contracts. The Company has a significant concentration of reinsurance. See, "Reinsurance" in the Notes to Financial Statements for further discussion of the Company's reinsurance arrangements.

Use of Estimates

The preparation of the financial statements of the Company requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates are primarily based on historical experience and at times may differ from the actual results. Estimates are regularly revised and updated by management as more information becomes known, which could impact the amounts reported and disclosed herein.

Recently Adopted Accounting Principles

The Company does not have any recently adopted accounting principles as of December 31, 2022 and 2021.

Correction of Errors

The Company does not have any correction of errors to disclose as of December 31, 2022 and 2021.

Unusual or Infrequent Events

The Company continues to monitor developments related to the coronavirus disease 2019 (“COVID-19”). The Company can experience losses resulting from the payment of greater than anticipated death benefits as a result of an increase in the national mortality rate from events such as COVID-19. For the years ended December 31, 2022 and 2021, COVID-19 has not resulted in a material adverse impact to the Company's financial statements.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

Basis of Presentation

The accompanying financial statements of the Company have been prepared in conformity with accounting practices prescribed or permitted by the Iowa Insurance Division, which practices differ from United States Generally Accepted Accounting Principles ("U.S. GAAP"). The more significant variances from U.S. GAAP are:

Investments: Investments in bonds and mandatorily redeemable preferred stocks are reported at amortized cost or fair value based on a rating assigned by the National Association of Insurance Commissioners ("NAIC").

The Company periodically reviews the value of its investments in bonds and mandatorily redeemable preferred stocks. If the fair value of any investment falls below its cost basis, the decline is analyzed to determine whether it is an other-than-temporary decline. To make this determination for each security, the following are some of the factors considered:

•	The length of time and the extent to which the fair value has been below cost.

•	The financial condition and near-term prospects of the issuer of the security, including any specific events that may affect its operations or earnings potential.

•	The Company's intent to sell the security prior to its maturity at an amount below its carrying value.

•	The Company's intent and ability to hold the security long enough for it to recover its cost.

Based on the analysis, the Company makes a judgment as to whether the decline in fair value is other-than-temporary. When an other-than-temporary impairment ("OTTI") is recorded because there is intent to sell or the Company does not have the intent and ability to hold the security for a period of time sufficient to recover the amortized cost basis, the security is written down to fair value. The interest related OTTI is deferred through the interest maintenance reserve ("IMR") and the non-interest related OTTI is included in the asset valuation reserve ("AVR") in the period that the OTTI is considered to have occurred as prescribed by the NAIC. Losses resulting from OTTI charges, net of transfers to IMR, are recorded within net realized capital gains (losses) in the statements of operations.

The Company invests in structured securities, including mortgage-backed securities/collateralized mortgage obligations, asset backed securities, collateralized debt obligations, and commercial mortgage-backed securities. Structured securities are reported at amortized cost or fair value based on a rating assigned by the NAIC. They are amortized using the interest method over the period which repayment of principal is expected to occur. For structured securities in unrealized loss positions, the Company determines whether it has the intent to sell or the intent and ability to hold the security for a period of time sufficient to recover the amortized cost.

Net realized gains and losses on disposed investments are reported in the statements of operations, net of federal income tax and transfers to the IMR.

Under U.S. GAAP, fixed maturities are designated at purchase as held to maturity, trading or available-for-sale, except for those accounted for using the fair value option ("FVO"). Held to maturity investments are reported at amortized cost and the remaining fixed maturity investments are reported at fair value. For those designated as trading, changes in fair value are reported in the statements of operations. Available-for-sale securities are reported at fair value with changes in fair value reported as a separate component of other comprehensive income (loss) in shareholder's equity. Using the FVO, securities are reported at fair value with changes in fair value reported in the statements of operations.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

When an intent impairment is determined, the individual security is written down from amortized cost to fair value, and a corresponding charge is recorded in net realized capital gains (losses) in the statements of operations as an OTTI. If the Company does not intend to sell the security, the Company determines whether or not it has intent and ability to retain the investment in the security for a period of time sufficient to recover the amortized cost basis. If the Company does not have the intent and ability to retain the investment for the time sufficient to recover the amortized cost basis, an OTTI should be considered to have occurred.

Asset Valuation Reserves: The AVR is intended to establish a reserve to offset potential credit related investment losses on most invested asset categories. AVR is determined by a NAIC prescribed formula and is reported as a liability rather than as a valuation allowance or an appropriation of surplus. The change in AVR is reported directly to unassigned surplus. AVR is not applicable under U.S. GAAP.

Interest Maintenance Reserve: Under a formula prescribed by the NAIC, the Company defers the portion of realized gains and losses on sales of fixed income investments, principally bonds, derivatives 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 securities sold in five-year bands. The Company reports the net deferral of IMR as a liability on the accompanying balance sheets. When the net deferral of IMR is negative, the amount is reported as a component of other assets and nonadmitted. IMR is not applicable under U.S. GAAP.

Cash and Short-term Investments: Cash and short-term investments represent cash balances, demand deposits and short-term fixed maturity investments with initial maturities of one year or less at the date of acquisition.

Under U.S. GAAP, the corresponding caption of cash and cash equivalents includes cash on hand, amounts due from banks and other highly liquid investments, such as money market instruments and debt instruments with maturities of three months or less at the time of purchase. Short-term investments include investments with remaining maturities of one year or less, but greater than three months, at the time of purchase.

Derivatives: The Company follows the hedge accounting guidance in SSAP No. 86, Derivatives ("SSAP No. 86") for derivative transactions. Under SSAP No. 86, derivatives that are deemed effective hedges are accounted for entirely in a manner which is consistent with the underlying hedged item. Derivatives used in hedging transactions that do not meet the requirements of SSAP No. 86 as an effective hedge are carried at fair value with the change in value recorded in surplus as unrealized gains or losses. The Company has deemed that none of its derivatives meet the requirements for an effective hedge, and effective June 1, 2021, the Company transferred its derivative instruments to its direct, wholly-owned subsidiary, CSLR.

Under U.S. GAAP, the Company recognizes derivatives at fair value with the change in value recorded in earnings as realized gain or loss, consistent with requirements for ineffective hedges. Similar to SSAP No. 86, U.S. GAAP allows separation of effective and ineffective hedges; however, the Company does not consider any of its hedges effective for U.S. GAAP, and effective June 1, 2021, the Company transferred its derivative instruments to its direct, wholly-owned subsidiary, CSLR.

Mortgage Loans: Mortgage loans are reported at amortized cost, less write downs for impairments. If the value of any mortgage loan is determined to be impaired (i.e., when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement), the carrying value of the mortgage loan is reduced to the lesser of either the present value of expected cash flows from the loan, discounted at the loan's original purchase yield or fair value of the collateral. For those mortgages that are determined to require foreclosure, the carrying value is reduced to the fair value of the underlying collateral, net of estimated costs to obtain and sell at the point of foreclosure. The carrying value of the impaired loans is reduced by establishing a permanent write-down recorded in net realized capital gains (losses).

Under U.S. GAAP, the Company recognizes mortgage loans at fair value with unrealized gain or loss recorded in surplus.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

Deferred Income Taxes: Deferred tax assets and liabilities represent the future tax recoveries or obligations associated with the accumulation of temporary differences between the tax and financial statement bases of the Company's assets and liabilities. Deferred tax assets are provided for and admitted to an amount determined under a standard formula in accordance with SSAP No. 101, Income Taxes ("SSAP No. 101"). A valuation allowance is required if based on the available evidence, it is more likely than not (a likelihood of more than 50 percent) that some portion or all of the gross deferred tax assets will not be realized. This assessment is determined on a separate reporting entity basis.

After reduction for any valuation allowance, the Company follows the admissibility formula prescribed under SSAP No. 101. These provisions limit the amount of gross deferred tax assets that can be admitted to surplus to those for which ultimate recoverability can be demonstrated. This limitation is based on availability of taxes paid in prior years that could be recovered through carrybacks, the expected timing of reversals for accumulated temporary differences over the next three years to offset future taxes, surplus limits, and the amount of gross deferred tax liabilities available for offset. Any deferred tax assets not covered under the formula are nonadmitted.

SSAP No. 101 requires all changes in deferred tax balances to be included as surplus adjustments; under U.S. GAAP, however, most changes in deferred tax balances are recorded in the income statement as a component of the total income tax provision.

U.S. GAAP also requires that deferred taxes be included for all jurisdictions that determine taxes based on income. Thus, deferred state income taxes must be recorded under U.S. GAAP. SSAP No. 101, however, specifically prohibits establishing deferred state income tax assets and liabilities.

Premiums: Life 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.

Under U.S. GAAP, premiums related to traditional life insurance contracts and payout contracts with life contingencies are recognized as revenue when due. Amounts received for investment- type, universal life-type, fixed annuities, payout contracts without life contingencies and fixed-indexed annuity contracts are reported as deposits to contract owner account balances. Revenues from these contracts consist primarily of fees assessed against the contract owner account balance for mortality and policy administration charges.

Benefits Paid or Provided: Benefits incurred for universal life and annuity policies represent the total of death benefits paid and the change in policy reserves.

Under U.S. GAAP, benefits and expenses for investment-type, universal life-type, fixed annuities, payout contracts without life contingencies and fixed-indexed annuity contracts include claims in excess of related account balances, expenses of contract administration and interest credited to contract owner account balances.

Benefit and Contract Reserves: Life policy and contract reserves under Statutory accounting practices are calculated based upon both the net level premium method and Commissioners' Reserve Valuation method ("CRVM") using statutory rates for mortality and interest. Annuity policy and contract reserves under statutory accounting practices are calculated based upon the Commissioners' Annuity Reserve Valuation method ("CARVM") using statutory rates for mortality and interest.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

Under U.S. GAAP policy reserves for traditional products are based upon the net level premium method utilizing best estimates of mortality, interest, and withdrawals prevailing when the policies were sold. For interest sensitive products, the U.S. GAAP policy reserve is equal to the policy fund balance plus an unearned revenue reserve which reflects the unamortized balance of early year policy loads over renewal year policy loads.

Reinsurance: Policy and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves. Commissions allowed by reinsurers on business ceded are reported as income when received. Losses generated in certain reinsurance transactions are recognized immediately in income, with gains reported as a separate component of surplus and amortized over the remaining life of the business. For business ceded to unauthorized reinsurers, statutory accounting practices require that reinsurance credits permitted by the treaty be recorded as an offsetting liability and charged against unassigned surplus.

Under U.S. GAAP, ceded future policy benefits and contract owner liabilities are reported gross on the balance sheets. Only those reinsurance recoverable balances deemed probable of recovery are reflected as assets on the balance sheets and are stated net of allowances for uncollectible reinsurance, which are charged to earnings. Gains and losses on reinsurance, including commission and expense allowances, are deferred and amortized over the remaining life of the business.

Nonadmitted Assets: Certain assets designated as "nonadmitted," principally past due agents' balances and commission advances, and other assets not specifically identified as an admitted asset within the NAIC Accounting Practices and Procedures Manual, are excluded from the accompanying balance sheets and are charged directly to unassigned surplus. In addition, non- admitted assets include deferred tax assets that are not admissible under SSAP No. 101. See Deferred Income Taxes above.

Under U.S. GAAP, all assets are included in the balance sheets.

Policyholder Dividends: Policyholder dividends are recognized when declared.

Under U.S. GAAP, dividends allocable to participating contract owners are based on published dividend projections or expected dividend scales.

Surplus Notes: Surplus notes issued are reported as a component of surplus on the balance sheets. Under statutory accounting practices, no interest expense is recorded on the surplus notes until payment has been approved by the Iowa Insurance Division.

Under U.S. GAAP, surplus notes are reported as long-term debt, and the related interest is reported as a charge to earnings over the term of the notes.

Separate Accounts: The assets and liabilities of the separate accounts are carried at fair value, and the reserves are calculated based upon the CARVM.

Under U.S. GAAP, separate account assets supporting variable options under variable annuity contracts are equal to cumulative deposits, less charges and withdrawals, plus interest credited thereon. The Market Value Adjustment ("MVA") and Collared Annuity Product ("CAP") separate accounts do not qualify as separate accounts and are reported as assets and liabilities of the Company's general account. Reserves for individual and group deferred annuity contracts are equal to cumulative deposits, less charges and withdrawals, net of adjustments for investment experience that the Company is entitled to reflect in future credit interest.

Reconciliation to U.S. GAAP: The effects of the preceding variances from U.S. GAAP on the accompanying statutory basis financial statements have not been determined, but are presumed to be material.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

Significant accounting practices are as follows:

Investments: Investments are stated at values prescribed by the NAIC, as follows:

Bonds not backed by other loans are stated at either amortized cost using the interest method or the lower of cost or fair value.

Loan-backed securities are stated at either amortized cost or fair market value. Amortized cost is determined using the interest method and includes anticipated prepayments. The retrospective adjustment method is used to determine the amortized cost for the majority of loan–backed and structured securities. For certain securities, the prospective adjustment methodology is utilized, including interest-only securities and securities that have experienced an other-than-temporary impairment ("OTTI").

Preferred stocks are stated in accordance with SSAP No. 32, Preferred Stock.

Common stocks are stated at fair market value. Federal Home Loan Bank ("FHLB") common stock is priced at par value.

Short-term investments are stated at amortized cost.

Residual collateralized mortgage obligations, which are included in other invested assets on the balance sheets, are reported at amortized cost using the effective interest method.

Surplus notes acquired, which are included in other invested assets on the balance sheets, are reported at amortized cost using the effective interest method.

Realized capital gains and losses are generally determined using the first in first out method.

Derivative Instruments

The Company transferred its derivative instruments to its wholly-owned subsidiary, CSLR, effective June 1, 2021. As of December 31, 2022 and 2021, the Company has not entered into any derivative transactions. The Company's use of derivative instruments for the period of January 1, 2021 through May 31, 2021 is described below:

The Company entered into various derivative transactions to reduce and manage the risk of a change in value, yield, price, cash flow or quantity of, or a degree of exposure with respect to assets, liabilities, or future cash flows which the Company had acquired or incurred. The Company entered into credit default swaps to replicate the investment characteristics of permissible investments using the derivative in conjunction with other investments. The replication (synthetic asset) and the derivative and other cash instrument were carried at amortized cost. The replication practices were in accordance with SSAP No. 86 hedge accounting practices. The Company also entered into interest rate swaps to manage the interest rate exposure of certain mortgage backed related securities. These interest rate swaps were designated as cash flow hedges in accordance with SSAP No. 86 hedge accounting practices and were carried at amortized cost. The Company did not receive hedge accounting treatment for any other derivative transactions.

The Company entered into the following types of derivatives:

Credit Contracts:

Credit default swaps: Credit default swaps were used to reduce credit loss exposure with respect to certain assets that the Company owns, or to assume credit exposure on certain assets that the Company does not own. Payments were made to or received from the counterparty at specified intervals. In the event of a default on the underlying credit exposure, the Company either received a payment (purchased credit protection) or were required to make a payment (sold credit protection) equal to the par minus recovery value of the swap contract. The Company utilized these contracts in replication relationships for sold credit protection and non-qualifying relationships for purchased credit protection.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

Equity Contracts:

Futures: Futures contracts were used to hedge against a decrease in certain equity indices. Such decreases may have resulted in a decrease in variable annuity account values which would have increased the possibility of the Company incurring an expense for guaranteed benefits in excess of account values.The Company entered into exchange traded futures with regulated futures commissions that were members of the exchange. The Company also posted initial and variation margins, with the exchange, on a daily basis.

Options: The Company used options to manage the equity and equity volatility risk of the economic liabilities associated with certain variable annuity minimum guaranteed benefits. The Company may have paid or received upfront premium to enter into these options. The Company utilized these options in non-qualifying hedging relationships.

Total return swaps: The Company used total return swaps as a hedge against a decrease in variable annuity account values, which were invested in funds holding equity instruments. Using total return swaps, the Company agreed with another party to exchange, at specified intervals or maturity, the difference between the economic performance of assets or a market index and a funding amount, calculated by reference to an agreed upon notional principal amount. No cash was exchanged at the onset of the contracts. Cash was paid and received over the life of the contract based upon the terms of the swaps. The Company utilizes these contracts in non-qualifying hedging relationships.

Variance swaps: The Company used variance swaps to manage equity volatility risk on the economic liabilities associated with certain minimum guaranteed living benefits. An increase in the equity volatility may have resulted in a higher valuation of such liabilities and may also have prospectively increased the cost of hedging equity risk with options. In an equity variance swap, the Company agreed with another party to exchange amounts in the future, based on the changes in equity volatility over a defined period. The Company utilized equity variance swaps in non-qualifying hedging relationships.

Foreign Exchange Contracts:

Foreign exchange swaps: The Company used foreign exchange or currency swaps to reduce the risk of change in the value, yield or cash flows associated with certain foreign denominated invested assets. Foreign exchange swaps represented contracts that require the exchange of foreign currency cash flows against U.S. dollar cash flows at regular periods, typically quarterly or semi-annually. The Company utilized these contracts in nonqualifying hedging relationships.

Currency forwards: The Company utilized currency forward contracts to hedge currency exposure related to its invested assets. The Company utilized these contracts in non-qualifying hedging relationships.

Interest Rate Contracts:

Interest rate swaps: Interest rate swaps were used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and/or liabilities and to hedge the interest rate exposure associated with certain variable annuity minimum guaranteed benefits. Interest rate swaps were also used to hedge the interest rate risk associated with the value of assets it owns or in an anticipation of acquiring them. Using interest rate swaps, the Company agreed with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest payments, calculated by reference to an agreed upon notional principal amount. These transactions were entered into pursuant to master agreements that provide for a single net payment to be made to/from the counterparty at each due date. The Company utilized these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

Swaptions: A swaption is an option to enter into a swap with a forward starting effective date. The Company used swaptions to hedge the interest rate exposure associated with certain variable annuity minimum guaranteed benefits. The Company paid or received a premium when it purchased the swaption. The Company utilized these contracts in non-qualifying hedging relationships.

Total return swaps: The Company used total return swaps to hedge the interest rate exposure associated with certain variable annuity minimum guaranteed benefits. Using total return swaps, the Company agreed with another party to exchange, at specified intervals or maturity, the difference between the economic performance of assets or a market index and a funding amount, calculated by reference to an agreed upon notional principal amount. No cash was exchanged at the onset of the contracts. Cash was paid and received over the life of the contract based upon the terms of the swaps. The Company utilized these contracts in non-qualifying hedging relationships.

Futures: The Company used interest rate futures contracts to hedge interest rate risks associated with certain variable annuity minimum guaranteed benefits and CMO-B portfolio. Changes in the general level of interest rates could result in the potential for adverse changes in the portfolio and/or certain variable annuity minimum guaranteed benefits. The Company entered into exchange traded futures with regulated futures commissions that were members of the exchange. The Company also posted initial and variation margins, with the exchange, on a daily basis. The Company utilized exchange-traded futures in non-qualifying hedging relationships.

Interest rate caps and floors: The Company used interest rate cap contracts to hedge the interest rate exposure arising from duration mismatches between assets and liabilities. Interest rate caps were also used to hedge interest rate exposure if rates rise above a specified level. The Company used interest rate floor contracts to hedge interest rate exposure if rates decreased below a specified level. The Company paid an upfront premium for these caps and floors. The Company utilized these contracts in non-qualifying hedging relationships.

Other Accounting Practices

Contract Loans: Contract Loans are reported at unpaid principal balances but not in excess of the cash surrender value.

Aggregate Reserve for Life Policies and Contracts: Life, annuity, and accident and health 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 value or the amounts required by law. Interest rates ranged from 1.00% to 13.25% for 2022.

The Company waives deduction of deferred fractional premiums upon the death, the larger of the variable insurance amount or the amount of the death benefits as of the prior processing date plus the amount of any subsequent additional premium payments minus withdrawals. Surrender values are not promised in excess of the legally computed reserves.

The methods used in valuation of substandard policies are as follows:

For life, endowment and term policies issued substandard, the standard reserve during the premium paying period is increased by 50% of the gross annual extra premium. Standard reserves are held on Paid-Up Limited Pay contracts.

For reinsurance accepted with table rating, the reserve established is a multiple of the standard reserve corresponding to the table rating.

For reinsurance with flat extra premiums, the standard reserve is increased by 50% of the flat extra.

The amount of insurance in force for which the gross premiums are less than the net premiums, according to the standard of valuation required by the Iowa Insurance Division, is $6.0 and $17.3 at December 31, 2022 and 2021, respectively. Reserves to cover the above insurance were immaterial at December 31, 2022 and 2021, respectively.

The tabular interest has been determined from the basic data for the calculation of policy reserves for all direct ordinary life insurance and for the portion of group life insurance. The method of determination of tabular interest of funds not involving life contingencies is as follows: current year reserves, plus payments, less prior year reserves, less funds added.

Reinsurance: Reinsurance premiums, commissions, expense reimbursements, and reserves related to reinsured business are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Reserves are based on the terms of the reinsurance contracts and are consistent with the risks assumed. Premiums and benefits ceded to other companies have been reported as a reduction of premium revenue and benefits expense. Amounts applicable to reinsurance ceded for reserves and unpaid claim liabilities have been reported as reductions of these items, and expense allowances received in connection with reinsurance ceded have been reflected in operations. The Company establishes a receivable for amounts due from reinsurers for claims paid and other amounts recoverable under the terms of the reinsurance contracts.

Participating Insurance: Participating business approximates less than 20% of the Company’s life insurance in force. For the year ended December 31, 2022, premiums on participating policies were $4.3, or less than 31% of life insurance premium income, as compared to $4.8, or less than 31% of life insurance premium income in 2021. The amount of dividends to be paid to participating policyholders is determined annually by the Board of Directors. Amounts allocable to participating policyholders are based on published dividend projections or expected dividend scales. Dividends expense of $6.3 was incurred in 2022, as compared to $6.8 in 2021. The participating business and related results are 100% ceded to ReliaStar Life Insurance Company, ("ReliaStar"), an indirect, wholly-owned subsidiary of Voya Financial, Inc.

Benefit Plans: VSC created and sponsors the Venerable 401(k) Savings Plan ("Venerable Savings Plan"), which is a tax qualified defined contribution plan for substantially all its employees. The Company's workforce in its entirety is directly employed by VSC and not by the Company itself, and amounts are allocated to the Company for this contributory retirement plan. Certain employees of Venerable Holdings participate in the Venerable Holdings, Inc. Equity Incentive Plan (the "Plan") with respect to awards granted in 2018 and 2021. Venerable Holdings allocates expenses associated with the Plan to its direct and indirect subsidiaries, including the Company. See Note 8 for additional detail.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

Nonadmitted Assets: Nonadmitted assets are summarized as follows:

	December 31
	2022			2021
	(In Thousands)
Healthcare and other amounts receivable			590		8,561
Other			146		4,044
Total nonadmitted assets		$	736	$	12,605

Changes in nonadmitted assets are generally reported directly in unassigned surplus as an increase or decrease in nonadmitted assets.

Claims and Claims Adjustment Expenses: Claims expenses represent the estimated ultimate net cost of all reported and unreported claims incurred through December 31, 2022. The Company does not discount claims and claims adjustment expense reserves. Such estimates are based on actuarial projections applied to historical claim payment data. Such liabilities are considered to be reasonable and adequate to discharge the Company’s obligations for claims incurred but unpaid as of December 31, 2022.

Guaranteed Benefits: For variable annuity guarantees, Valuation Manual 21 - Requirements for Principle-Based Reserves for Variable Annuities ("VM-21") is followed. This guideline interprets how to apply the CARVM. The result under the average of the most severe 30% randomly generated stochastic scenarios is held as the reserve. Additionally, two sets of assumptions are used, and the reserve is based on the greater of the two. The first is the "Standard Projection", which largely uses a prescribed set of assumptions, and the second uses Company prudent best estimate assumptions. Both reinsurance and hedging are also reflected. Taxes are not incorporated. Stochastic scenarios must meet VM-21 requirements, which effectively require either the use of prescribed scenario generator directly, or a non-prescribed scenario generator that does not materially lower the reserve.

Separate Accounts: Most separate account assets and liabilities held by the Company represent funds held for the benefit of the Company’s variable life and annuity policy and contract holders who bear all of the investment risk associated with the policies. Such policies are of a non-guaranteed nature. All net investment experience, positive or negative, is attributed to the policy and contract holders’ account values. The assets and liabilities of these accounts, excluding the Market Value Adjustment Separate Account ("MVA"), are carried at fair value and are legally segregated and are not subject to claims that arise out of any other business of the Company. There are no product classification differences between statutory accounting practices and U.S. GAAP. (See Note 3 for details related the Company's prescribed practices related to the MVA.)

2. Business Combinations and Goodwill

The Company purchased 100% of the issued and outstanding capital stock of CSLR, an insurance company domiciled in the State of Delaware, on June 1, 2021 from Equitable Holdings. CSLR is authorized in 49 states and the District of Columbia, and operates as a reinsurance company, primarily assuming variable annuity guaranteed minimum death benefit ("GMDB"), guaranteed minimum withdrawal benefit ("GMWB") and guaranteed minimum income benefit ("GMIB") riders.

The transaction was accounted for as a statutory purchase under SSAP No. 68, Business Combinations and Goodwill ("SSAP No. 68"). Goodwill represents the excess of what the Company paid to acquire CSLR over the fair value of CSLR's net assets at the acquisition date. The Company has elected to amortize goodwill into surplus over ten years in accordance with SSAP No. 68. On a quarterly basis, the Company compares goodwill to VIAC's total surplus to determine if any goodwill should be non-admitted in compliance with SSAP No. 68's non-admission requirement for goodwill in excess of 10% of the acquiring company's surplus.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The table below reflects goodwill at the acquisition date and as of December 31, 2022:

	1		2		3		4		5
Purchased entity		Acquisition date		Cost of acquired entity		Original amount of goodwill		Original amount of admitted goodwill
				(In Thousands)
CSLR		06/01/2021		$	215,580	$	121,269	$	121,269


	1		6		7		8		9
Purchased entity		Admitted goodwill as of the reporting date		Amount of goodwill amortized during the reporting period		Book Value of SCA		Admitted goodwill as a % of SCA BACV, gross of admitted goodwill Col. 6/Col. 8
		(In Thousands)
CSLR		$	102,068	$	12,127	$	1,488,516		6.9	%

The subcomponents and calculation of adjusted surplus and total admitted goodwill as of December 31, 2022 is as follows:

	Calculation of Limitation Using Prior Quarter Numbers		Current Reporting Period
	(In Thousands)

(1) Capital & Surplus	$	1,898,502	XXX
Less:
(2) Admitted Positive Goodwill		105,100	XXX
(3) Admitted EDP Equipment & Operating System Software		—	XXX
(4) Admitted Net Deferred Taxes		—	XXX
(5) Adjusted Capital and Surplus		1,793,402	XXX

(6) Limitation on amount of goodwill (adjusted capital and surplus times 10% goodwill limitation)		179,340	XXX

(7) Current period reported Admitted Goodwill	XXX		$# $102,068
(8) Current Period Admitted Goodwill as a % of prior period Adjusted Capital and Surplus	XXX		5. 55.7%

3.	Permitted and Prescribed Statutory Basis Accounting Practices

The financial statements of the Company are presented on the basis of accounting practices prescribed or permitted by the Iowa Insurance Division. The Iowa Insurance Division recognizes only statutory accounting practices prescribed or permitted by the State of Iowa for determining and reporting the financial condition and results of operations of an insurance company and for determining its solvency under the Iowa Insurance Law. The NAIC Accounting Practices and Procedures Manual ("NAIC SAP") has been adopted as a component of prescribed practices by the State of Iowa. The Commissioner of the Iowa Insurance Division ("Commissioner") has the right to permit other specific practices that deviate from prescribed practices.

The Company is required to identify those significant accounting practices that are permitted or prescribed, and obtain written approval of the practices from the Iowa Insurance Division.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

For the years ended December 31, 2022 and 2021, the Company had no such permitted accounting practices.

MVA Prescribed Practice

The Company, with the explicit permission of the Commissioner, carries the assets of the Market Value Adjustment Separate Account (“MVA”) at amortized cost instead of fair value as required by SSAP No. 56, Separate Accounts (“SSAP No. 56”). The impact to the Company’s capital and surplus as a result of this prescribed practice was a decrease of $8.2 as of December 31, 2022 and a decrease of $10.4 as of December 31, 2021. The Company’s net income was decreased by $2.2 for the year ended December 31, 2022 and net loss was increased by $1.0 for the year ended December 31, 2021 as a result of the prescribed practice. The Company’s risk-based capital would not have triggered a regulatory event had the Company not used this prescribed practice.

Quasi-Reorganization Permitted Practice

On May 8, 2013, the Company, with the permission of the Commissioner, restated the gross paid-in and contributed surplus and the unassigned funds components of surplus, as of December 31, 2012, similar to the restatement of surplus that occurs pursuant to the prescribed accounting guidance for a quasi-reorganization under SSAP No. 72, Surplus and Quasi-Reorganizations (“SSAP No. 72”). The restatement resulted in a decrease to gross paid-in and contributed surplus and an increase in unassigned surplus of $1,659.0. This permitted practice had no impact on net income, total capital and surplus or risk-based capital.

The Company’s risk-based capital would not have triggered a regulatory event had the Company not used any of these prescribed practices.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

4. Investments

Bonds and Equity Securities

The cost or amortized cost and fair value of bonds and equity securities are as follows:

	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
At December 31, 2022
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	20,694	$	—	$	554	$	20,141
States, municipalities, and political subdivisions		117,130		—		11,863		105,268
Foreign other (par value - $2,686,484)		2,694,702		5,717		221,328		2,479,091
Foreign government (par value - $105,761)		112,184		82		18,683		93,582
Corporate securities		3,987,611		12,431		389,739		3,610,304
Residential mortgage-backed securities		183,903		7,925		15,836		175,992
Commercial mortgage-backed securities		260,781		6		33,482		227,306
Other asset backed securities		1,138,743		5,421		85,051		1,059,113
Total bonds		8,515,748		31,582		776,536		7,770,797
Preferred stocks		49,347		14,496		12,717		51,126
Common stocks		10,000		—		—		10,000
Total equity securities		59,347		14,496		12,717		61,126
Total	$	8,575,095	$	46,078	$	789,253	$	7,831,923

At December 31, 2021
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	9,777	$	2	$	60		9,719
States, municipalities, and political subdivisions		120,159		12,312		6		132,464
Foreign other (par value - $2,800,402)		2,806,407		135,789		8,534		2,933,662
Foreign government (par value - $100,761)		108,247		5,974		1,026		113,196
Corporate securities		3,989,348		370,165		8,694		4,350,818
Residential mortgage-backed securities		165,602		22,939		100		188,442
Commercial mortgage-backed securities		188,665		5,347		3,095		190,917
Other asset backed securities		1,160,058		22,847		7,753		1,175,151
Total bonds		8,548,263		575,375		29,268		9,094,369
Preferred stocks		59,759		1,983		839		60,903
Common stocks		10,000		—		—		10,000
Total equity securities		69,759		1,983		839		70,903
Total	$	8,618,022	$	577,358	$	30,107	$	9,165,272

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

Reconciliation of bonds from amortized cost to carrying value is as follows:

	December 31
	2022			2021
	(In Thousands)
Cost or amortized cost	$	8,515,748		$	8,548,263
Adjustment for FX and below investment grade bonds		(1,804	)		(258	)
Carrying value	$	8,513,944		$	8,548,005

The aggregate fair value of bonds with unrealized losses and the time period that cost exceeded fair value are as follows:

	Less than 6 Months Below Cost		More than 6 Months and Less than 12 Months Below Cost		More than 12 Months Below Cost		Total
	(In Thousands)
At December 31, 2022
Fair value	$	812,979	$	4,709,751	$	1,731,451	$	7,254,181
Unrealized loss		32,032		427,080		317,423		776,535

At December 31, 2021
Fair value	$	1,471,140	$	244,463	$	135,666	$	1,851,269
Unrealized loss		16,051		6,760		6,458		29,269

The amortized cost and fair value of investments in bonds at December 31, 2022, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized Cost		Fair Value
	(In Thousands)
Maturity:
Due in 1 year or less	$	282,378	$	278,847
Due after 1 year through 5 years		1,647,807		1,570,899
Due after 5 years through 10 years		1,898,763		1,711,997
Due after 10 years		3,103,373		2,746,641
		6,932,321		6,308,384
Residential mortgage-backed securities		183,903		175,992
Commercial mortgage-backed securities		260,781		227,306
Other asset-backed securities		1,138,743		1,059,113
Total	$	8,515,748	$	7,770,795

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The Company does not have direct exposure through investments in subprime mortgage loans as of December 31, 2022 and 2021.

The following table summarizes the Company’s indirect exposure through other investments as of December 31, 2022 and 2021, respectively:

	Actual Cost		Book/Adjusted Carrying Value (excluding interest)		Fair Value		Other Than Temporary Impairment Losses Recognized
	(In Thousands)
December 31, 2022
Residential mortgage-backed securities	$	53,418	$	53,321	$	51,623	$	(1,620	)
Structured securities		3,429		1,432		5,466		(2	)
Total	$	56,847	$	54,753	$	57,089	$	(1,622	)

December 31, 2021
Residential mortgage-backed securities	$	44,291	$	44,063	$	47,738	$	(819	)
Structured securities		3,874	$	1,723		9,574		—
Total	$	48,165	$	45,786	$	57,312	$	(819	)

The Company does not have underwriting exposure to subprime mortgage risk through Mortgage Guaranty or Financial Guaranty insurance coverage as of December 31, 2022 and 2021.

The following table shows prepayment penalty and acceleration fees at December 31, 2022 and 2021:

	General Account		Separate Account
December 31, 2022	(In Thousands)
Number of CUSIPs		15		2
Aggregate Amount of Investment Income	$	4,386	$	373

December 31, 2021
Number of CUSIPs		73		8
Aggregate Amount of Investment Income	$	37,446	$	528

Mortgage Loans and Real Estate

All mortgage loans are evaluated by seasoned underwriters, including an appraisal of loan-specific credit quality, property characteristics, and market trends. The Company's mortgage loans on real estate are all commercial mortgage loans, held for investment.

The maximum and minimum lending rates for mortgage loans initiated during 2022 were 3.3% and 7.9%, respectively.

The Company did not have any taxes, assessments and any amounts advanced and not included in the mortgage loan total as of December 31, 2022 and 2021.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

During 2022, the maximum percentage of any one loan to the value of security at the time of the loan, exclusive of insured or guaranteed or purchase money mortgages was 75.0% on commercial properties.

The Company's commercial mortgage loans of $1.8 billion and $2.2 billion as of December 31, 2022 and 2021, respectively, were current, from an age analysis perspective. The amount of mortgage loans in which the insurer is a participant or co-lender in a mortgage loan agreement were $1.4 billion and $2.2 billion as of December 31, 2022 and 2021, respectively.

The Company did not have any investments in impaired mortgage loans with or without an allowance for credit losses or in any impaired loans subject to a participant or co-lender mortgage loan agreement for which the Company is restricted from unilaterally foreclosing on the mortgage loan as of December 31, 2022 and 2021.

The Company recognizes interest income on its impaired loans upon receipt.

The Company has no allowances for credit losses as of December 31, 2022 and 2021.

The Company has no mortgage loans derecognized as a result of foreclosure as of December 31, 2022 and 2021.

Real Estate

The Company did not have any real estate transactions as of December 31, 2022 and 2021.

Net Realized Capital Gains and Losses

Realized capital gains (losses) are reported net of federal income taxes and amounts transferred to the IMR as follows:

	December 31
	2022			2021
	(In Thousands)
Realized capital (losses) gains	$	41,714		$	(484,377	)
Amount transferred to IMR (net of related taxes of $728 in 2022, $3,319 in 2021)		(2,737	)		(40,007	)
Federal income tax benefit (expense)		(42,421	)		(39,431	)
Net realized capital (losses) gains	$	(3,444	)	$	(563,815	)

Realized capital losses include losses of $16.8 and $55.8 related to securities that have experienced other-than-temporary declines in value during 2022 and 2021, respectively.

Proceeds from sales of investments in bonds and other fixed maturity interest securities were $1.4 billion and $4.9 billion in 2022 and 2021, respectively. Gross gains of $11.7 and $975.2 and gross losses of $5.8 and $69.5 during 2022 and 2021, respectively, were realized on those sales. A portion of the gains and losses realized in 2022 and 2021 has been deferred to future periods in the IMR. In addition, gross losses of $0.0 and gross losses of $201.4 during 2022 and 2021, respectively, were due to the impact of derivatives.

The Company did not recognize any other-than-temporary impairments ("OTTI") in accordance with structured securities subject to SSAP No. 43R, Loan-backed and Structured Securities (“SSAP No. 43R”) due to intent to sell or inability or lack of intent to hold to recovery as of the years ended December 31, 2022 and 2021.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The following table discloses in detail the OTTI’s recognized by the Company in accordance with structured securities subject to SSAP No. 43R, exclusive of intent impairments, as of December 31, 2022:

CUSIP	Book/Adjusted Carrying Value Amortized Cost Before Current Period OTTI		Present Value of Projected Cash Flows		Recognized Other-Than-Temporary Impairment		Amortized Cost After Other-Than-Temporary Impairment		Fair Value at Time of OTTI		Date of Financial Statement Where Reported
	(In Thousands)
17314RAF2	$	7,451,920	$	6,717	$	735	$	6,717	$	6,717	9/30/2022
00075WAP4		268,609		235		34		235		235	12/31/2022
02147RAT7		65,226		64		1		64		64	12/31/2022
05531RAE7		1,978,938		1,793		186		1,793		1,793	12/31/2022
058933AG7		748,984		661		88		661		661	12/31/2022
05946XZD8		262,468		251		11		251		251	12/31/2022
05949CMU7		1,483,070		1,360		123		1,360		1,360	12/31/2022
07386HQW4		1,637,790		1,510		128		1,510		1,510	12/31/2022
07386HZG9		3,406,382		3,207		199		3,207		3,207	12/31/2022
0738794H8		116,444		115		2		115		115	12/31/2022
17314RAF2		6,516,527		6,450		67		6,450		6,450	12/31/2022
17321HAD0		2,251,825		1,984		268		1,984		1,984	12/31/2022
17326CBE3		203,884		190		14		190		190	12/31/2022
2254582C1		217,305		192		25		192		192	12/31/2022
2254582J6		209,547		122		87		122		122	12/31/2022
225470B77		5,589,435		5,249		340		5,249		5,249	12/31/2022
36185MAD4		167,734		157		10		157		157	12/31/2022
362341XE4		950,147		880		70		880		880	12/31/2022
36245RAA7		677,952		582		96		582		582	12/31/2022
41161UAC6		1,951,342		1,754		198		1,754		1,754	12/31/2022
41161UAE2		255,053		244		11		244		244	12/31/2022
466247UG6		628,439		585		44		585		585	12/31/2022
46631JAA6		820,795		697		123		697		697	12/31/2022
59565HAY1		2,659,284		2,450		209		2,450		2,450	12/31/2022
59565HBA2		407,715		402		5		402		402	12/31/2022
59565HBB0		48,133		47		1		47		47	12/31/2022
59565HBF1		952,646		925		28		925		925	12/31/2022
61758LAD1		2,112,319		1,763		349		1,763		1,763	12/31/2022
61760CAN5		1,094,872		826		268		826		826	12/31/2022
761118QM3		2,196,652		1,838		359		1,838		1,838	12/31/2022
86359DBX4		588,739		11		578		11		11	12/31/2022
92922FWE4		307,477		293		15		293		293	12/31/2022
93935YAA8		195,382		153		43		153		153	12/31/2022
94982XAD4		916,727		817		100		817		817	12/31/2022
94983JAC6		308,903		296		13		296		296	12/31/2022
94984MAA2		185,282		177		8		177		177	12/31/2022
Total	XXX		XXX		$	4,838	XXX		XXX		XXX

The total amount of OTTI's recognized by the Company arising from the present value of expected cash flows being less than the amortized cost of structured securities subject to SSAP No. 43R was $4.8 and $0.4 in 2022 and 2021, respectively.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The following table shows for the years ended December 31, 2022 and 2021, all impaired securities in the aggregate for which an OTTI has not been recognized in earnings as a realized loss, including securities with a recognized OTTI for non-interest related declines when a non-recognized interest related impairment remains:

	December 31, 2022
	Aggregate Amount of Unrealized Losses		Aggregate Fair Value of Securities with Unrealized Losses
	(In Thousands)
Less than 12 months	$	138,531	$	1,774,079
Greater than 12 months		71,355		506,295
Total	$	209,886	$	2,280,374

	December 31, 2021
	Aggregate Amount of Unrealized Losses		Aggregate Fair Value of Securities with Unrealized Losses
	(In Thousands)
Less than 12 months	$	12,290	$	1,025,943
Greater than 12 months		4,338		124,748
Total	$	16,628	$	1,150,691

Impairments on Joint Ventures, Partnerships, and Limited Liability Companies

Impairments on joint venture, partnerships and limited liability company holdings are taken when it is determined that these values are not recoverable. The fair value of these investments is based upon the Company’s overall proportional ownership interest in the underlying partnership. The Company did not have any impairments for the years ended December 31, 2022 and 2021.

Investment Income

Major categories of net investment income are summarized as follows:

	Year ended December 31
	2022			2021
	(In Thousands)
Income:
Bonds	$	390,992		$	556,906
Mortgage loans		102,573			128,248
Equity securities		2,866			4,658
Subsidiary		190,000			(3,031	)
Contract loans		435			214
Derivatives		—			(243,546	)
Other		31,228			73,101
Total investment income		718,093			516,550
Investment expenses		(20,189	)		(35,740	)
Net investment income	$	697,904		$	480,810

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

Federal Home Loan Bank Agreements

The Company is a member of the FHLB of Des Moines. Through its membership, the Company has conducted business activity (entered into advances) with the FHLB as part of the Company's liquidity strategy. The Company has determined the estimated maximum borrowing capacity as $9.2 billion at December 31, 2022. The Company has the ability to obtain funding from the FHLB based on a percentage of the value of its assets and subject to the availability of eligible collateral. The limit across all programs is 30% of the general and separate accounts net admitted assets of the Company, one quarter in arrears.

The amount of FHLB capital stock held by the Company is as follows:

	2022						2021
	General Account		Separate Account		Total		General Account		Separate Account		Total
	(In Thousands)
Membership stock - Class A	$	—	$	—	$	—	$	—	$	—	$	—
Membership stock - Class B		10,000		—		10,000		10,000		—		10,000
Activity stock		—		—		—		—		—		—
Excess stock		—		—		—		—		—		—
Aggregate total	$	10,000	$	—	$	10,000	$	10,000	$	—	$	10,000

The actual collateral as determined by the Company is $0.0 at December 31, 2022 and 2021.

All FHLB membership stock is not eligible for redemption.

The Company did not have any amount of collateral pledged to FHLB as of December 31, 2022, and did not have any maximum amount that was pledged to FHLB as of December 31, 2022. The amount of collateral pledged to FHLB and the maximum amount that was pledged to FHLB as of December 31, 2021 is as follows:

	Amount Pledged at End of Reporting Period						Maximum Amount Pledged During Reporting Period
	Fair Value		Carrying Value		Aggregate Total Borrowing		Fair Value		Carrying Value		Aggregate Total Borrowing
	(In Thousands)
As of December 31, 2021
General account	$	—	$	—	$	—	$	734,195	$	654,182	$	—
Separate account		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	734,195	$	654,182	$	—

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The Company did not have any amount borrowed from the FHLB at December 31, 2022, and did not have any maximum amount the general account borrowed from FHLB during the year ended December 31, 2022..

The Company did not have any amount borrowed from the FHLB at December 31, 2021. The maximum amount the general account borrowed from FHLB during the year ended December 31, 2021 was $365.0. The effective rate at which interest accrued on the amount borrowed from the FHLB ranged between 0.28% and 0.31% for the year ended December 31, 2021. The Company paid an immaterial amount of interest for the year ended December 31, 2021.

The Company does not have any outstanding FHLB borrowings at December 31, 2022, and therefore is not currently subject to prepayment penalties.

Restricted Assets

The following table shows assets pledged as collateral or restricted at December 31, 2022:

	Gross (Admitted & Nonadmitted) Restricted
	General Account				Separate Account		Total Assets		Total From Prior Year		Increase/(Decrease)		Total Nonadmitted Restricted		Total Admitted Restricted		Gross (Admitted & Nonadmitted) Restricted to Total Assets			Admitted Restricted to Total Admitted Assets
Restricted Asset Category	Total Assets		Supporting Separate Account Activity*		Supporting General Account Activity**		Total Assets		Total From Prior Year		Increase/(Decrease)		Total Nonadmitted Restricted		Total Admitted Restricted					Admitted Restricted to Total Admitted Assets
(In Thousands)
FHLB capital stock		10,000		—		—		10,000		10,000		—		—		10,000		0.03	%		0.03	%
On deposit with states		9,975		—		—		9,975		9,923		52		—		9,975		0.03	%		0.03	%
Total restricted assets	$	19,975	$	—	$	—	$	19,975	$	19,923	$	52	$	—	$	19,975		0.06	%		0.06	%

* Subset of Total General Account Gross Restricted Assets

There were no restricted assets within the separate accounts at December 31, 2022.

The following table shows assets pledged as collateral or restricted at December 31, 2021:

	Gross (Admitted & Nonadmitted) Restricted
	General Account				Total Assets		Total From Prior Year		Increase/(Decrease)			Total Nonadmitted Restricted		Total Admitted Restricted		Gross (Admitted & Nonadmitted) Restricted to Total Assets			Admitted Restricted to Total Admitted Assets
Restricted Asset Category	Total Assets		Supporting Separate Account Activity*		Total Assets		Total From Prior Year		Increase/(Decrease)			Total Nonadmitted Restricted		Total Admitted Restricted					Admitted Restricted to Total Admitted Assets
(In Thousands)
FHLB capital stock		10,000		—		10,000		10,000		—					10,000		0.03	%		0.03	%
On deposit with states		9,923		—		9,923		9,905		18			—		9,923		0.03	%		0.03	%
Pledged as collateral to FHLB (including assets backing funding agreements)		—		—		—		662,772		(662,772	)		—		—		—	%		—	%
Derivative Pledged Collateral		—		—		—		746,669		(746,669	)		—		—		—	%		—	%
Total restricted assets	$	19,923	$	—	$	19,923	$	1,429,346	$	(1,409,423	)	$	—	$	19,923		0.06	%		0.06	%

* Subset of Total General Account Gross Restricted Assets

There were no restricted assets within the separate accounts at December 31, 2021.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The Company did not have any collateral received and reflected as assets within its financial statements at December 31, 2022 and at December 31, 2021.

5.	Concentrations of Credit Risk

The Company held below investment grade corporate bonds with a carrying value of $275.0 and $362.8 and a fair value of $243.0 and $388.8 at December 31, 2022 and 2021, respectively. Those holdings amounted to 3.2% and 4.0% of the Company’s investments in bonds and 2.2% and 2.7% of total admitted assets excluding separate accounts, at December 31, 2022 and 2021, respectively. The holdings of below investment grade bonds are widely diversified and of satisfactory quality based on the Company’s investment policies and credit standards.

The Company held unrated bonds with a carrying value of $0.0 and $1.0 with a fair value of $0.0 and $1.0 at December 31, 2022 and 2021, respectively. The carrying value of these holdings amounted to 0.0% and 0.0% of the Company’s investment in bonds and 0.0% and 0.0% of the Company’s total admitted assets excluding separate accounts, at December 31, 2022 and 2021, respectively.

Loan-to-value ("LTV") and debt service coverage ("DSC") ratios are measures commonly used to assess the risk and quality of commercial mortgage loans. The LTV ratio, calculated at time of origination, is expressed as a percentage of the amount of the loan relative to the value of the underlying property. An LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the value of the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property's net income (loss) to its debt service payments. A DSC ratio of less than 1.0 indicates that property's operations do not generate sufficient income to cover debt payments. These ratios are utilized as part of the review process described above. LTV and DSC ratios as of the dates indicated are presented below:

		As of December 31, 2022					As of December 31, 2021
		Carrying Value		%			Carrying Value		%
		(In Thousands)					(In Thousands)
Origination Loan-to-Value
	0% - 50%	$	444,926		24.9	%	$	582,671		26.5	%
	50% - 60%		769,287		43.0	%		888,363		40.5	%
	60% - 70%		545,009		30.5	%		608,613		27.7	%
	70% - 80%		29,398		1.6	%		115,627		5.3	%
	80% - 90%		—		—	%		—		—	%
Total		$	1,788,620		100.0	%	$	2,195,274		100.0	%

Debt Service Coverage Ratio
Greater than 1.5x		$	1,287,216		72.0	%	$	1,933,259		88.0	%
1.25x to 1.5x			242,739		13.6	%		81,662		3.7	%
1.0x to 1.25x			163,796		9.2	%		163,862		7.5	%
Less than 1.0x			79,233		4.3	%		16,491		0.8	%
Not Applicable*			15,636		0.9	%		—		—	%
Total		$	1,788,620		100.0	%	$	2,195,274		100.0	%

*Commercial mortgage loans secured by land or construction loans

If the value of any mortgage loan is determined to be impaired (i.e., when it is probable that the Company will be unable to collect on all amounts due according to the contractual terms of the loan agreement), the carrying value of the mortgage loan is reduced to either the present value of expected cash flows from the loan, discounted at the loan’s effective interest rate, or fair value of the collateral.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The following table shows the Company's mortgage loan portfolio diversification by property type:

	As of December 31, 2022					As of December 31, 2021
Property Type	Carrying Value		%			Carrying Value		%
	(In Thousands)					(In Thousands)
Retail	$	545,287		30.5	%	$	652,256		29.7	%
Apartments		366,539		20.5	%		477,174		21.7	%
Office		450,440		25.2	%		464,381		21.2	%
Industrial		176,122		9.8	%		294,226		13.4	%
Other		167,963		9.4	%		220,778		10.1	%
Hotel/Motel		82,269		4.6	%		86,459		3.9	%
Total	$	1,788,620		100.0	%	$	2,195,274		100.0	%

The following table shows the Company's mortgage loan portfolio diversification by region:

	As of December 31, 2022					As of December 31, 2021
Region	Carrying Value		%			Carrying Value		%
	(In Thousands)					(In Thousands)
Pacific	$	417,237		23.3	%	$	477,409		21.8	%
South Atlantic		368,333		20.6	%		504,395		23.0	%
West South Central		118,890		6.6	%		179,726		8.2	%
East North Central		264,776		14.8	%		273,056		12.4	%
Middle Atlantic		362,287		20.3	%		425,665		19.4	%
Mountain		178,516		10.0	%		241,160		11.0	%
West North Central		21,832		1.2	%		33,750		1.5	%
New England		28,061		1.6	%		37,898		1.7	%
East South Central		28,688		1.6	%		22,213		1.0	%
Total	$	1,788,620		100.0	%	$	2,195,274		100.0	%

The following table shows the carrying value of the Company's mortgage loan portfolio breakdown by year of origination:

Year of Origination	As of December 31, 2022		As of December 31, 2021
	(In Thousands)
2022	$	26,756	$	—
2021		767		11,229
2020		65,909		73,468
2019		76,854		93,731
2018		296,633		344,345
2017		236,405		244,463
2016		281,434		355,874
2015		217,447		291,631
2014		251,533		304,997
2013		257,849		314,730
2012 and prior		77,033		160,805
Total	$	1,788,620	$	2,195,273

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

Reserves

At December 31, 2022, the Company’s annuity reserves, including those held in separate accounts and deposit fund 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:

A. INDIVIDUAL ANNUITIES
	General Account			Separate Account with Guarantees*			Separate Account Nonguaranteed			Total			% of Total
	(In Thousands)
(1) Subject to discretionary withdrawal:
a. With market value adjustment		$	5,485,263		$	110,138		$	—		$	5,595,401		27.2	%
b. At book value less current surrender charge of 5% or more			400,940			689			—			401,629		1.9	%
c. At fair value			—			—			7,026,402			7,026,402		34.1	%
d. Total with market value adjustment or at fair value (total of a through c)			5,886,203			110,827			7,026,402			13,023,432		63.2	%
e. At book value without adjustment (minimal or no charge or adjustment)			3,917,092			14,668			—			3,931,759		19.1	%

(2) Not subject to discretionary withdrawal			3,644,031			—			—			3,644,031		17.7	%
(3) Total (gross: direct + assumed)			13,447,326			125,495			7,026,402			20,599,222		100.0	%
(4). Reinsurance ceded			4,435,590			—			—			4,435,590
(5) Total (net) (3) - (4)			9,011,736			125,495			7,026,402			16,163,632

(6) Amount included in A(1) above that will move to A(1) for the first time within the year after the statement date:			267,985			—			—			267,985

*These amounts reflect prescribed or permitted practices that depart from the NAIC Accounting Practices and Procedures Manual, see Note 1, Summary of Significant Accounting Polices for additional information.

B. GROUP ANNUITIES
	General Account			Separate Account with Guarantees*			Separate Account Nonguaranteed			Total			% of Total
	(In Thousands)
(1) Subject to discretionary withdrawal:
a. With market value adjustment		$	163,122		$	159,884		$	—		$	323,006		2.9	%
b. At book value less current surrender charge of 5% or more			899			526			—			1,425		—	%
c. At fair value			—			—			10,843,647			10,843,647		96.3	%
d. Total with market value adjustment or at fair value (total of a through c)			164,021			160,410			10,843,647			11,168,078		99.2	%
e. At book value without adjustment (minimal or no charge or adjustment)			89,065			11			—			89,076		0.8	%

(2) Not subject to discretionary withdrawal			—			—			—			—		—	%
(3) Total (gross: direct + assumed)			253,086			160,421			10,843,647			11,257,154		100.0	%
(4). Reinsurance ceded			89,193			—			—			89,193
(5) Total (net) (3) - (4)			163,893			160,421			10,843,647			11,167,961

(6) Amount included in A(1) above that will move to A(1) for the first time within the year after the statement date:			878			—			—			878

*These amounts reflect prescribed or permitted practices that depart from the NAIC Accounting Practices and Procedures Manual, see Note 1, Summary of Significant Accounting Polices for additional information.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

C. DEPOSIT-TYPE CONTRACTS (no life contingencies):
				General Account		Separate Account with Guarantees*		Separate Account Nonguaranteed		Total		% of Total
				(In Thousands)
(1) Subject to discretionary withdrawal:
			a. With market value adjustment	$	—	$	—	$	—	$	—		—	%
			b. At book value less current surrender charge of 5% or more		—		—		—		—		—	%
			c. At fair value		—		—		—		—		—	%
			d. Total with market value adjustment or at fair value (total of a through c)		—		—		—		—		—	%
			e. At book value without adjustment (minimal or no charge or adjustment)		62,758		—		—		62,758		1.8	%

(2) Not subject to discretionary withdrawal					3,405,119		—		—		3,405,119		98.2	%
(3) Total (gross: direct + assumed)					3,467,877		—		—		3,467,877		100.0	%
(4). Reinsurance ceded					2,339,078		—		—		2,339,078
(5) Total (net) (3) - (4)					1,128,799		—		—		1,128,799

(6) Amount included in A(1) above that will move to A(1) for the first time within the year after the statement date:					—		—		—		—

*These amounts reflect prescribed or permitted practices that depart from the NAIC Accounting Practices and Procedures Manual, see Note 1, Summary of Significant Accounting Polices for additional information.

	D.
Life & Accident & Health Annual Statement:				Amount
				(In Thousands)
	(1	)	Exhibit 5, Annuities Section, Total (net)	$	8,157,810
	(2	)	Exhibit 5, Supplemental Contracts with Life Contingencies Section, Total (net)		1,017,820
	(3	)	Exhibit 7, Deposit - Type Contracts, line 14, column 1		1,128,799
	(4	)	Subtotal (1+2+3)	$	10,304,429

Separate Accounts Annual Statement:
	(5	)	Exhibit 3, line 0299999, column 2	$	18,155,965
	(6	)	Exhibit 3, line 0399999, column 2		—
	(7	)	Policyholder dividend and coupon accumulations		—
	(8	)	Policyholder premiums		—
	(9	)	Guaranteed interest contracts		—
	(10	)	Other contract deposit funds		—
	(11	)	Subtotal (5+6+7+8+9+10)	$	18,155,965
	(12	)	Combined total (4+11)	$	28,460,394

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

Analysis of life actuarial reserves by withdrawal characteristics as of December 31, 2022 are summarized as follows:


	Account Value		Cash Value		Reserve
	(In Thousands)
General Account
(1) Subject to discretionary withdrawal, surrender values, or policy loans:
a. Term Policies with Cash Value	$	—	$	—	$	—
b. Universal Life		223,362		224,095		265,991
c. Universal Life with Secondary Guarantees		—		—		—
d. Indexed Universal Life		—		—		—
e. Indexed Universal Life with Secondary Guarantees		—		—		—
f. Indexed Life		—		—		—
g. Other Permanent Cash Value Life Insurance		63,419		312,428		359,845
h. Variable Life		—		—		—
i. Variable Universal Life		6,655		6,651		6,651
j. Miscellaneous Reserves		—		—		3,924
(2) Not Subject to Discretionary Withdrawal or No Cash Value:
a. Term Policies without Cash Value	XXX		XXX			391
b. Accidental Death Benefits	XXX		XXX			188
c. Disability - Active Lives	XXX		XXX			1,027
d. Disability - Disabled Lives	XXX		XXX			1,542
e. Miscellaneous Reserves	XXX		XXX			5,639
(3) Total (gross: direct + assumed)		293,436		543,174		645,198
(4) Reinsurance Ceded		293,436		543,174		645,198
(5) Total (net) (3) - (4)		—		—		—

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

Account Value

Cash Value

Reserve

(In Thousands)

Separate Account with Guarantees

(1) Subject to Discretionary Withdrawal, Surrender Values, or Policy Loans:

a. Term Policies with Cash Value

—

b. Universal Life

—

c. Universal Life with Secondary Guarantees

—

d. Indexed Universal Life

—

e. Indexed Universal Life with Secondary Guarantees

—

f. Indexed Life

—

g. Other Permanent Cash Value Life Insurance

—

h. Variable Life

—

i. Variable Universal Life

—

j. Miscellaneous Reserves

—

(2) Not Subject to Discretionary Withdrawal or No Cash Value:

a. Term Policies without Cash Value

XXX

—

b. Accidental Death Benefits

XXX

—

c. Disability - Active Lives

XXX

—

d. Disability - Disabled Lives

XXX

—

e. Miscellaneous Reserves

XXX

—

(3) Total (gross: direct + assumed)

—

(4) Reinsurance Ceded

—

(5) Total (net) (3) - (4)

—

	Account Value		Cash Value		Reserve
	(In Thousands)
Separate Account Nonguaranteed
(1) Subject to Discretionary Withdrawal, Surrender Values, or Policy Loans:
a. Term Policies with Cash Value	$	—	$	—	$	—
b. Universal Life		—		—		—
c. Universal Life with Secondary Guarantees		—		—		—
d. Indexed Universal Life		—		—		—
e. Indexed Universal Life with Secondary Guarantees		—		—		—
f. Indexed Life		—		—		—
g. Other Permanent Cash Value Life Insurance		—		—		—
h. Variable Life		—		—		—
i. Variable Universal Life		32,832		32,754		32,754
j. Miscellaneous Reserves		—		—		—
(2) Not Subject to Discretionary Withdrawal or No Cash Value:
a. Term Policies without Cash Value	XXX		XXX			—
b. Accidental Death Benefits	XXX		XXX			—
c. Disability - Active Lives	XXX		XXX			—
d. Disability - Disabled Lives	XXX		XXX			—
e. Miscellaneous Reserves	XXX		XXX			—
(3) Total (gross: direct + assumed)		32,832		32,754		32,754
(4) Reinsurance Ceded		—		—		—
(5) Total (net) (3) - (4)		32,832		32,754		32,754

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

Life & Accident & Health Annual Statement:				Amount
				(In Thousands)
	(1	)	Exhibit 5, Life Insurance Section, Total (net)	$	—
	(2	)	Exhibit 5, Accidental Death Benefits Section, Total (net)		—
	(3	)	Exhibit 5, Disability - Active Lives Section, Total (net)		—
	(4	)	Exhibit 5, Disability - Disabled Lives Section, Total (net)		—
	(5	)	Exhibit 5, Miscellaneous Reserves Section, Total (net)		—
	(6	)	Subtotal (1+2+3+4+5)	$	—

Separate Accounts Annual Statement:
	(7	)	Exhibit 3, line 0199999, column 2	$	32,754
	(8	)	Exhibit 3, line 0499999, column 2		—
	(9	)	Exhibit 3, line 0599999, column 2		—
	(10	)	Subtotal (7+8+9)	$	32,754
	(11	)	Combined total (6+10)	$	32,754

Deferred and uncollected life insurance premiums and annuity considerations as of December 31, 2022 and 2021 are as follows:

Type	Gross			Net of Loading
	(In Thousands)
December 31, 2022
Ordinary renewal	$	(50,254	)	$	(50,254	)
Group Life		540			540
Group Annuity		(121	)		(121	)
Totals	$	(49,835	)	$	(49,835	)

December 31, 2021
Ordinary renewal		(51,232	)		(51,232	)
Group Life		172			172
Group Annuity		(173	)		(173	)
Totals	$	(51,233	)	$	(51,233	)

7.	Employee Benefit Plans

The Company's workforce in its entirety is directly employed by VSC, and not by the Company itself. VSC created and sponsors the Venerable 401 (k) Savings Plan (the “Venerable Savings Plan”). The Venerable Savings Plan is a tax qualified defined contribution plan. Substantially all employees of VSC are eligible to participate, and are automatically enrolled in the Venerable Savings Plan with a minimum deferral of 3% of eligible compensation (unless participation is affirmatively declined). VSC will also match employee pretax contributions, up to a maximum of 6% of eligible compensation. All matching contributions are subject to a four year graded vesting schedule. All contributions made to the Savings Plan were subject to certain limits imposed by applicable law. Venerable Savings Plan benefits are not guaranteed by the Pension Benefit Guaranty Corporation ("PBGC"). The Venerable Savings Plan may also allocate amongst eligible participants, a profit sharing contribution of up to a maximum 4% of eligible compensation. Amounts allocated to the Company for the Venerable Savings Plan were $3.1 and $3.5 for the years ended December 31, 2022 and 2021, respectively.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The Company is a party to a deferred compensation plan for eligible employees of VSC and certain other individuals who meet the eligibility criteria. The liability for the deferred compensation commitment for VSC's employees is held on VSC and fluctuates with market conditions. The Company has no legal obligation for benefits under the plan. Amounts allocated to the Company were $(0.2) and $0.3 for the years ended December 31, 2022 and 2021, respectively.

Certain employees of Venerable Holdings participate in the Venerable Holdings, Inc. Equity Incentive Plan (the "Plan") with respect to awards granted in 2018 and 2021. The Plan permits the Parent to grant stock options to participants subject to vesting. The Company has no legal obligation for benefits under the Plan. Venerable Holdings allocates expenses associated with the Plan to its direct and indirect subsidiaries including the Company. Amounts allocated to the Company for the Plan were $2.7 and $0.0 for the years ended December 31, 2022 and 2021, respectively.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

8.	Separate Accounts

Separate account assets and liabilities represent funds segregated by the Company for the benefit of certain policy and contract holders who bear the investment risk. Revenues and expenses on the separate account assets and related liabilities equal the benefits paid to the separate account policy and contract holders.

The general nature and characteristics of the separate accounts business follows:

	Indexed		Non-Indexed Guarantee Less than/equal to 4%			Non-Guaranteed Separate Accounts		Total
	(In Thousands)
December 31, 2022
Premium, consideration or deposits for the year	$	—	$	53		$	19,610	$	19,663

Reserves for separate accounts with assets at:
Fair value	$	—	$	—		$	17,902,804	$	17,902,804
Amortized cost*		—		285,916			—		285,916
Total separate account reserves	$	—	$	285,916		$	17,902,804	$	18,188,720
Reserves for separate accounts by withdrawal characteristics:
Subject to discretionary withdrawal:
With market value adjustment*	$	—	$	285,916		$	—	$	285,916
At fair value		—		—			17,902,804		17,902,804
Subtotal		—		285,916			17,902,804		18,188,720
Total separate account aggregate reserves	$	—	$	285,916		$	17,902,804	$	18,188,720

	Indexed		Non-Indexed Guarantee Less than/equal to 4%			Non-Guaranteed Separate Accounts		Total
	(In Thousands)
December 31, 2021
Premium, consideration or deposits for the year	$	—	$	(6	)	$	43,432	$	43,426

Reserves for separate accounts with assets at:
Fair value	$	—	$	—		$	24,934,607	$	24,934,607
Amortized cost*		—		379,528			—		379,528
Total separate account reserves	$	—	$	379,528		$	24,934,607	$	25,314,135

Reserves for separate accounts by withdrawal characteristics:
Subject to discretionary withdrawal:
With market value adjustment*	$	—	$	379,528		$	—	$	379,528
At fair value		—		—			24,934,607		24,934,607
Subtotal		—		379,528			24,934,607		25,314,135
Total separate account aggregate reserves	$	—	$	379,528		$	24,934,607	$	25,314,135

* These amounts reflect prescribed practices that depart from the NAIC Accounting Practices and Procedures Manual, see Note 3 for additional information.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The Company utilizes separate accounts to record and account for assets and liabilities for particular lines of business. For the years ended December 31, 2022 and 2021, the Company reported assets and liabilities from the following product lines in a separate account: Individual Annuity, Group Annuity, Individual Life and Group Life.

Some assets in the separate account are considered legally insulated from the general account, providing protection of such assets from being available to satisfy claims resulting in the general account. The assets legally and not legally insulated from the general account are summarized in the following table, by product or transaction type, as of December 31, 2022 and 2021:

Product or Transaction	Legally Insulated Assets		Not Legally Insulated Assets*
	(In Thousands)
December 31, 2022
Individual Annuity	$	7,038,294	$	140,949
Group Annuity		10,862,000		180,176
Individual Life		9,083		—
Group Life		23,727		—
Total	$	17,933,104	$	321,125

December 31, 2021
Individual Annuity	$	9,795,800	$	163,468
Group Annuity		15,126,308		241,407
Individual Life		12,595		—
Group Life		33,406		—
Total	$	24,968,109	$	404,875
* These amounts reflect prescribed practices that depart from the NAIC Accounting Practices and Procedures Manual, see Note 3 for additional information.

Separate account assets for products registered with the U.S. Securities and Exchange Commission ("SEC") totaled $18.3 billion and $25.4 billion as of the years ended December 31, 2022 and 2021, respectively. The Company did not have any separate account assets from products excluded from registration as of December 31, 2022 and 2021.

In accordance with the products/transactions recorded within the separate account, some separate account liabilities are guaranteed by the general account. To compensate the general account for the risk taken, the separate account paid the following amounts in risk charges:

Year ended	Risk Charges
	(In Thousands)

2022	$	154,011
2021		166,800
2020		175,289
2019		189,437
2018		199,389

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

Total separate account guarantees paid by the Company’s general account are as follows:

Year ended	Guarantees Paid
	(In Thousands)
2022	$	46,302
2021		26,078
2020		33,298
2019		31,335
2018		12,084

The Company does not engage in securities lending transactions within its separate accounts.

A reconciliation of the amounts transferred to and from the separate accounts is presented below:

	Year ended December 31
	2022			2021
	(In Thousands)
Transfers as Reported in the Summary of Operations of the Separate Accounts Statement:
Transfers to separate accounts	$	19,805		$	44,515
Transfers from separate accounts		(2,418,363	)		(3,335,727	)
Transfers as reported in the Statements of Operations	$	(2,398,558	)	$	(3,291,212	)

The aggregate fair value of equity securities, including mutual funds, supporting separate accounts with additional insurance benefits and minimum investment return guarantees as of December 31, 2022 and 2021, was $17.9 billion and $25.0 billion, respectively.

The Company has products classified within the separate account for which the investment directive is not determined by the contract holder. If these investments had been included in the general account, the Company would not have exceeded the investment limitations imposed on the general account.

The Company has separate account assets for which less than 100% of investment proceeds, net of contract fees and assessments, are attributed to the contract holder. The reinvestment of these investment proceeds within the separate account would not have resulted in a combined investment portfolio that exceeds the state investment limitations imposed on the general account.

9.	Federal Income Taxes

On June 1, 2021, the Company purchased 100% of the issued and outstanding capital stock of CSLR. Equitable Holdings and VIAC elected to treat the sale and purchase of the capital stock of CSLR as an asset sale and purchase by making the election under Internal Revenue Code section 338(h)(10). The Company charged goodwill for the purchase price of the shares of capital stock over the statutory surplus and capital of CSLR. The amortization of this statutory goodwill is not deductible for Federal income tax purpose.

The Company treated the cession of its deferred variable annuity business and payout annuity business to CSLR on June 1, 2021 as taxable reinsurance. Consequently, the Company realized net capital gain on investment securities transferred to CSLR. Under the consolidated return regulations – the Company and CSLR join in the filing of consolidated Federal income tax returns – the Company deferred the net capital gain. This deferred intercompany gain gave rise to a significant deferred tax liability.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The Inflation Reduction Act ("Act") was enacted on August 16, 2022 and included a new corporate alternative minimum tax ("CAMT"). The Company has determined that it does not expect to be liable for the CAMT in 2023.

The Company has entered into a federal tax sharing agreement with members of an affiliated group as defined in Section 1504 of the Internal Revenue Code of 1986, as amended. The agreement provides for the manner of calculation and the amounts/timing of the payments between the parties as well as other related matters in connection with the filing of consolidated federal income tax returns. The federal tax sharing agreement provides that the Company pays its subsidiaries for the tax benefits of ordinary and capital losses only to the extent the consolidated tax group actually uses the tax benefit of losses generated.

The following is a list of affiliated companies that participate in the filing of the Company's consolidated federal income tax return for the year ended December 31, 2022:

Venerable Insurance and Annuity Company
Corporate Solutions Life Reinsurance Company

The following is a list of affiliated companies that participated in the filing of the Company's consolidated federal income tax return for the year ended December 31, 2021:

Venerable Insurance and Annuity Company		Rocky Range, Inc.
Corporate Solutions Life Reinsurance Company

Under the intercompany tax sharing agreement, the Company recorded a payable of $50.9 at December 31, 2022 to its subsidiary CSLR, for its portion of the consolidated federal income taxes. At December 31, 2021, an additional $394.8 due from CSLR was considered forgiven by VIAC and was recorded as a capital contribution from VIAC to CSLR at that time.

Current income taxes incurred consisted of the following major components:

	Year ended December 31
	2022			2021
	(In Thousands)
Federal tax expense (benefit) on operations	$	(42,421	)	$	(39,431	)
Federal tax expense (benefit) on capital gain/losses		42,421			39,431
Total current tax expense (benefit) incurred	$	—		$	—

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The components of deferred tax asset and deferred tax liability that make up a Net Deferred Tax Asset (DTA) at December 31, 2022 and 2021 are as follows:

	December 31, 2022							December 31, 2021							Change
	Ordinary		Capital			Total		Ordinary		Capital			Total		Ordinary			Capital			Total
	(In Thousands)
Gross DTAs	$	797,152	$	—		$	797,152	$	879,599	$	—		$	879,599	$	(82,447	)	$	—		$	(82,447	)
Statutory Valuation Allowance Adjustments		547,630		—			547,630		539,283		—			539,283		8,347			—			8,347
Adjusted gross DTAs		249,522		—			249,522		340,316		—			340,316		(90,794	)		—			(90,794	)
Deferred Tax Assets Nonadmitted		—		—			—		—		—			—		—			—			—
Admitted Adjusted Gross DTAs		249,522		—			249,522		340,316		—			340,316		(90,794	)		—			(90,794	)
Gross Deferred tax liabilities		112,003		137,519			249,522		157,068		183,248			340,316		(45,065	)		(45,729	)		(90,794	)
Net Admitted Adjusted Gross DTAs	$	137,519	$	(137,519	)	$	—	$	183,248	$	(183,248	)	$	—	$	(45,729	)	$	45,729		$	—

The admission calculation components by tax character of admitted adjusted gross deferred tax assets as the result of the application of SSAP No. 101 as of December 31, 2022 and December 31, 2021 are as follows:

		December 31, 2022						December 31, 2021						Change
		Ordinary		Capital		Total		Ordinary		Capital		Total		Ordinary			Capital		Total
		(In Thousands)
a.	Federal income taxes paid in prior years recoverable through loss carrybacks	$	—	$	—	$	—	$	—	$	—	$	—	$	—		$	—	$	—
b.	Adjusted gross DTAs expected to be realized (excluding the amount of DTAs from (a)) after application of the threshold limitation (the lesser of (b)1 and (b)2 below)		—		—		—		—		—		—		—			—		—
	1. Adjusted gross DTAs expected to be realized following the balance sheet date		—		—		—		—		—		—		—			—		—
	2. Adjusted gross DTAs allowed per limitation threshold	XXX		XXX			310,695	XXX		XXX			322,147	XXX			XXX			(11,452	)
c.	Adjusted gross DTAs (excluding the amount of DTAs from (a) and (b) above) offset by gross deferred tax liabilities		249,522		—		249,522		340,316		—		340,316		(90,794	)		—		(90,794	)
d.	Deferred tax assets admitted as the result of application SSAP No. 101 Total	$	249,522	$	—	$	249,522	$	340,316	$	—	$	340,316	$	(90,794	)	$	—	$	(90,794	)

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The ratio percentage and the amount of adjusted capital and surplus used to determine the recovery period and threshold limitation is as follows:

	2022			2021
	(Amounts in Thousands)
Ratio percentage used to determine recovery period and threshold limitation amount		1,020.4	%		919.8	%
Amount of adjusted capital and surplus used to determine recovery period and threshold limitation	$	2,071,299		$	2,147,649

Below shows the calculation to determine the impact of tax planning strategies on adjusted gross and net admitted DTAs:

	December 31, 2022						December 31, 2021						Change
	Ordinary			Capital			Ordinary			Capital			Ordinary			Capital
	(Amounts in Thousands)
Adjusted gross DTAs	$	249,522		$	—		$	340,316		$	—		$	(90,794	)	$	—
Percentage of adjusted gross DTAs by tax character attributable to the impact of tax planning strategies		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Net Admitted Adjusted Gross DTAs	$	249,522		$	—		$	340,316		$	—		$	(90,794	)	$	—
Percentage of net admitted adjusted gross DTAs by tax character admitted because of the impact of tax planning strategies		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Does the Company's tax-planning strategies include the use of reinsurance?													Yes_____			No___X__

The Company’s tax planning strategies do not include the use of reinsurance.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The significant components of deferred tax assets and deferred tax liabilities are as follows:

	December 31, 2022		December 31, 2021		Change
	(In Thousands)
Deferred Tax Assets
Ordinary:
Policyholder reserves	$	50,336	$	64,155	$	(13,819	)
Investments		187,757		246,406	$	(58,649	)
Deferred acquisition costs		1,573		—	$	1,573
Compensation and benefits accrual		3,463		2,504	$	959
Receivables - nonadmitted		1,832		2,647	$	(815	)
Tax credit carry-forward		5,600		10	$	5,590
Net operating loss		545,268		562,420	$	(17,152	)
Other		1,323		1,457	$	(134	)
Subtotal		797,152		879,599		(82,447	)
Statutory valuation allowance adjustment		547,630		539,283		8,347
Nonadmitted		—		—		—
Admitted ordinary deferred tax assets	$	249,522	$	340,316	$	(90,794	)
Capital:
Investments	$	—	$	—	$	—
Subtotal		—		—		—
Statutory valuation allowance adjustment		—		—		—
Admitted capital deferred tax assets	$	—	$	—	$	—
Admitted deferred tax assets	$	249,522	$	340,316	$	(90,794	)

Deferred Tax Liabilities
Ordinary:
Investments	$	50,621	$	55,897	$	(5,276	)
Policyholder reserves		39,948		77,190		(37,242	)
Other		21,434		23,981		(2,547	)
Subtotal	$	112,003	$	157,068	$	(45,065	)
Capital:
Investments	$	137,519	$	183,248	$	(45,729	)
Other		—		—		—
Subtotal		137,519		183,248		(45,729	)
Total deferred tax liabilities	$	249,522	$	340,316	$	(90,794	)

Net deferred tax assets/liabilities	$	—	$	—	$	—

Valuation allowances are provided when it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. Considering the historical financial information and projections of future taxable losses, we have determined that it is more likely than not, the portion of gross deferred tax assets subject to reversal from future taxable income exclusive of the reversing of temporary differences, will not be realized as of December 31, 2022. As of December 31, 2022 and 2021, the Company had valuation allowances of $547.6 and $539.3, respectively.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The provision for federal income tax expense and change in deferred taxes differs from the amount which would be obtained by applying the statutory federal income tax rate to income (including capital items) before income taxes. The significant items causing this difference are as follow:

	Year Ended December 31
	2022						2021
	Amount			Effective Tax Rate			Amount			Effective Tax Rate
	(Amounts In Thousands)
Ordinary income (loss)	$	158,220					$	(744,550	)
Capital gain (loss)		38,977						(524,383	)
Total pretax income (loss)		197,197						(1,268,933	)
Expected tax expense (benefit) at 21% statutory rate		41,411			21.0	%		(266,476	)		21.0	%
Increase (decrease) in actual tax reported resulting from:
Dividends received deduction		(10,899	)		(5.5	)%		(23,055	)		1.8	%
Interest maintenance reserve		(2,632	)		(1.3	)%		(21,239	)		1.7	%
Hedge losses		—			—	%		293,178			(23.1	)%
Reinsurance		(2,534	)		(1.3	)%		(2,534	)		0.2	%
Change in valuation allowance		8,347			4.2	%		178,953			(14.1	)%
Prior year tax		8,064			4.1	%		3,054			(0.2	%
Intercompany dividend		(39,900	)		(20.2	)%		637			(0.1)	%
Sec 332 liquidation adjustment		—			—	%		(176,808	)		13.9	%
Other		(125	)		(0.1)	%		(43	)		—	%
Total income tax reported	$	1,732			0.9	%	$	(14,333	)		1.1	%

Current income taxes incurred	$	—			—	%	$	—			—	%
Change in deferred income tax*		1,732			0.9	%		(14,333	)		1.1	%
Total income tax reported	$	1,732			0.9	%	$	(14,333	)		1.1	%

* Excluding tax on unrealized gains (losses) and other surplus items

The Company is not under examination by any taxing authorities as of the years ended December 31, 2022, 2021, with years 2019, 2020, and 2021 still open for examination.

As of December 31, 2022, the Company's tax credit carry forwards are as follows:

Year of Expiration	Amount
	(In Thousands)
2038	$	2
2039		6
2040		2
2041		5,589
Total	$	5,599

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

As of December 31, 2022 the Company's net operating loss carry forwards originated and expire as follows:

Year of Origination	Year of Expiration		Amount
			(In Thousands)
2018		N/A	$	484,393
2019		N/A		653,786
2020		N/A		87,480
2021		N/A		1,366,201
2022		N/A	$	4,655

There are no amounts of federal income tax incurred that will be available for recoupment in the event of future net losses from 2022, 2021, and 2020.

There were no deposits admitted under Section 6603 of the Internal Revenue Service Code as of December 31, 2022.

The Company has no unrecorded tax liability as of December 31, 2022 and December 31, 2021.

The Company does not have any nonadmitted state tax credits at December 31, 2022 or 2021.

The Company does not have any tax loss contingencies as of December 31, 2022 and 2021.

The Company recognizes accrued interest and penalties related to tax contingencies in federal income taxes and federal income tax expense on the balance sheets and statements of operations, respectively. The Company had no accrued interest as of December 31, 2022 and 2021.

10. Investment in Subsidiaries

The Company has two direct, wholly-owned subsidiaries as of December 31, 2022, Rocky Range and CSLR.

Rocky Range, an insurance company domiciled in the State of Arizona that is licensed as a pure captive reinsurer by the DIFI, is a direct, wholly-owned subsidiary of the Company. Effective June 1, 2021, the Company recaptured all of the deferred variable annuity business and liabilities it previously reinsured to Rocky Range, and the Company and Rocky Range terminated the reinsurance agreement and all agreements then in place related to the reinsurance arrangement, including but not limited to the Funds Withheld Trust Agreement and Reinsurance Credit Trust Agreement, and the related Funds Withheld Trust and Reinsurance Credit Trust accounts. The Company no longer reinsures any business to Rocky Range as of June 1, 2021, and Rocky Range maintains capital of $0.3 (minimum capital of $0.1 is required as prescribed under Arizona Revised Statutes Section 20-1096.03(A)(6)).

On June 1, 2021, the Company purchased 100% of the issued and outstanding capital stock of CSLR, an insurance company domiciled in the State of Delaware, from Equitable Holdings as seller. CSLR is authorized in 49 states and the District of Columbia, and operates as a reinsurance company, primarily assuming deferred variable annuity GMDB, GMWB, and GMIB riders, payout annuity contracts, and also assumes smaller blocks of structured settlements, group long-term disability, and ordinary life insurance business. The Company entered into a reinsurance agreement with CSLR under which the Company cedes its deferred variable annuity and payout annuity business to CSLR, effective June 1, 2021.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

Pursuant to SSAP No. 97, Investments in Subsidiary Controlled and Affiliated entities, the Company reports its investments in Rocky Range and CSLR based on the subsidiary's statutory surplus.

The carrying value on the Company's financial statements as of December 31, 2022 and 2021 are as follows:

	December 31
	2022		2021
	(In Thousands)
Rocky Range	$	250	$	250
CSLR	$	1,386,448	$	1,578,233
Total carrying value of subsidiaries	$	1,386,698	$	1,578,483

Summarized financial information of the Company's subsidiary of Rocky Range for the years ended December 31, 2022 and 2021 are as follows:

	December 31
	2022		2021
	(In Thousands)
Revenues	$	13	$	626,085
Income (Loss) before net realized gains and losses		—		(1,568,111	)
Net (loss) income		—		(1,528,815	)
Admitted assets		250		250
Liabilities		—		—

Summarized financial information of the Company's subsidiary of CSLR for the year ended December 31, 2022 and 2021 are as follows:

	December 31
	2022		2021
	(In Thousands)
Revenues	$	2,940,751	$	15,722,107
Income (Loss) before net realized gains and losses		1,046,457		(352,196	)
Net income		1,043,435		30,525
Admitted assets		21,280,612		20,868,255
Liabilities		19,642,055		18,965,144

11. Reinsurance

The Company utilizes reinsurance transactions to manage its overall risk profile. The Company bases its selection of a reinsurer on the financial strength of the reinsurer. Reinsurance treaties can be either in the form of ceding or assuming and are structured as monthly or yearly renewable term, coinsurance, modified coinsurance, funds withheld or a combination thereof. Reinsurance permits recovery of a portion of losses from reinsurers, although it does not discharge the Company’s primary liability as the direct insurer of the risks. To the extent that the assuming companies become unable to meet their obligations under these treaties, the Company remains contingently liable to its policyholders for the portion reinsured. To minimize its exposure to significant losses from reinsurer insolvencies, the Company evaluates the financial condition of the reinsurer and monitors concentrations of credit risk.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The Company does not have any reinsurance agreements in effect under which the reinsurer may unilaterally cancel the agreement.

The Company did not have any assumed premiums for the years ended December 31, 2022 and 2021.

Reinsurance Transactions

The Company recaptured its deferred variable annuity business previously reinsured to Rocky Range, effective June 1, 2021. As a result, the Company is no longer a party to a captive reinsurance agreement as of December 31, 2022 and 2021. For the five months ended May 31, 2021, the Company was a party to a reinsurance agreement with Rocky Range, under which the Company ceded, on a funds withheld coinsurance and modified coinsurance basis, certain variable annuity business to Rocky Range, which completes its financial statements on a modified U.S. GAAP basis.

The agreement had the economic impact of ceding 100% of the closed block variable annuity contracts previously issued by the Company, which included contracts with multiple rider guarantees, including minimum accumulation, income, death, and withdrawal benefits policies. Also, as a result of the reinsurance agreement at that time, Rocky Range could use letters of credit, which would not be admitted assets to the Company, to back some or all of the reserves. Under the terms of the agreement, the Company reinsured to Rocky Range on a funds withheld basis, 100% of the general account liabilities of the reinsured policies. The agreement also ceded on a modified coinsurance basis, 100% of the separate account liabilities. Under the modified coinsurance structure, the Company retained control and owned all assets contained in the separate account and held separate account reserves.

The Company is no longer a party to a captive reinsurer agreement, effective June 1, 2021, and therefore did not take a reserve credit as of December 31, 2022 and 2021 for any captive reinsurer agreements.

Effective June 1, 2021, the Company entered into a reinsurance agreement with CSLR, its direct, wholly-owned subsidiary. Under this agreement, the Company cedes on a coinsurance and modified coinsurance basis, its deferred variable annuity business and payout annuity business to CSLR, with the Company retaining administration of such reinsured contracts. The Company ceded reserves of $5.3 billion and $5.6 billion as of December 31, 2022 and 2021, respectively. The Company received/accrued $222.2 and $61.4 from CSLR as of December 31, 2022 and 2021, respectively, related to reinsurance activity. CSLR maintains a variable annuity hedge program that is designed to mitigate market risk arising primarily from the minimum guarantees within the variable annuity products it assumes from the Company and other cedant insurers, whose economic costs are primarily dependent on future equity market returns, interest rate levels, equity volatility levels and policyholder behavior. The hedge target of the variable annuity hedge program is regulatory and economic capital and their sensitivities to immediate market movements.

The Company cedes 100% of its previously issued, fixed and fixed indexed annuity contracts to affiliated reinsurers, Athene Annuity Re Ltd. ("AARe") and Athene Annuity & Life Assurance Company ("AADE"), indirect and wholly-owned subsidiaries of Athene Holding, Ltd. ("Athene").

The Company has entered into a reinsurance agreement with AARe, a Bermuda reinsurer and an indirect, wholly owned subsidiary of Athene. Under this agreement, the Company cedes on a modified coinsurance basis, an eighty percent (80%) quota share of certain liabilities with respect to certain fixed annuity business, and an eighty percent (80%) quota share of the net liability associated with the GMIB-annuitized contracts as they arise out of the variable annuity business of the Company. Under this modified coinsurance agreement, the Company holds all related assets and reserves on the balance sheet, with an additional modco adjustment recorded within reinsurance recoverables representing balances due to or due from AARe. This modco adjustment fluctuates with valuation changes in the related assets and liabilities such that all results are transferred to AARe with no net impact to the Company. The Company held $10.5 billion and $11.3 billion in reserves as of December 31, 2022 and 2021, respectively, on behalf of AARe, and received/accrued $1.2 billion and $1.1 billion from AARe as of December 31, 2022 and 2021, respectively, related to reinsurance activity.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The Company has entered into a reinsurance agreement with AADE, an insurance company domiciled in the State of Delaware and an indirect wholly-owned subsidiary of Athene. Under this agreement, the Company cedes on a coinsurance basis, a twenty percent (20%) quota share of certain liabilities with respect to certain fixed annuity business, and a twenty percent (20%) quota share of the net liability associated with the GMIB-annuitized contracts as they arise out of the variable annuity business of the Company. Under this agreement, all assets and liabilities are transferred to AADE and are not presented on the Company's balance sheet. The Company ceded reserves of $2.6 billion and $2.8 billion to AADE as of December 31, 2022 and 2021, respectively, and received/accrued $280.4 and $267.1 from AADE as of December 31, 2022 and 2021, respectively, related to reinsurance activity.

The Company reinsures its remaining business to third party reinsurers. The Company held reserves of $905.2 and $979.9 as of December 31, 2022 and 2021 related to these agreements, respectively, most notable of which was the reinsurance agreement with ReliaStar, an insurance company domiciled in the State of Minnesota and an indirect wholly-owned subsidiary of Voya Financial. Under this agreement, the Company cedes on a coinsurance and modified coinsurance basis, its traditional individual life insurance, supplemental contracts consisting of life insurance proceeds, and certain deferred annuity and investment-only policies of the Company.

The Company also serves as a third-party administrator for certain closed blocks of business on behalf of Voya Retirement Insurance and Annuity Company ("VRIAC"), an indirect wholly-owned subsidiary of Voya Financial.

12.	Capital and Surplus

Under Iowa insurance regulations, the Company is required to maintain a minimum total capital and surplus of the greater of $5.0 or Risk Based Capital ("RBC"). Additionally, an extraordinary dividend or distribution is defined as a dividend or distribution that, together with other dividends and distributions made within the preceding twelve months, exceeds the greater of (1) 10% of the insurer's policyholder surplus as of the preceding December 31; or (2) the insurer's net gain from operations for the twelve-month period ended the preceding December 31, in each case determined in accordance with statutory accounting principles. Dividends are paid as determined by the Company's Board of Directors. An extraordinary dividend or distribution cannot be paid without the prior approval of the Iowa Insurance Division. In addition, no dividend or other distribution exceeding an amount equal to an insurance company's earned surplus may be paid without the domiciliary insurance regulator's prior approval.

A surplus note with a carrying value of $96.1 as of December 31, 2022 was issued to VRIAC, an insurance company domiciled in the State of Connecticut and at the time of issue, an affiliate of the Company. The principal amount at issue on December 29, 2004 was $175.0, with December 29, 2034 as the date of maturity. Principal payments in the amounts of $16.2, $8.5, $8.5, and $8.3 were made on February 15, 2022, May 13, 2022, August 15, 2022, and November 15, 2022, respectively. As of December 31, 2022, a total of $78.9 in life-to-date principal payments have been made. Interest expense for the years ended December 31, 2022 and 2021 was $7.2 and $10.6, respectively. As of December 31, 2022 a total of $195.6 in interest expense has been recognized life-to-date. The interest rate associated with this surplus debenture is 6.3%. There was an immaterial amount of unapproved interest and/or principal associated with this surplus note as of December 31, 2022 and 2021.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

A surplus note with a carrying value of $96.1 as of December 31, 2022 was issued to ReliaStar, an insurance company domiciled in the State of Minnesota and at the time of issue, an affiliate of the Company. The principal amount at issue on December 29, 2004 was $175.0, with December 29, 2034 as the date of maturity. Principal payments in the amounts of $16.2, $8.5, $8.5, and $8.3 were made on February 15, 2022, May 13, 2022, August 15, 2022, and November 15, 2022, respectively. As of December 31, 2022, a total of $78.9 in life-to-date principal payments have been made. Interest expense for the year ended December 31, 2022 and 2021 was $7.2 and $10.6, respectively. As of December 31, 2022, a total of $195.6 in interest expense has been recognized life-to-date. The interest rate associated with this surplus debenture is 6.3%. There was an immaterial amount of unapproved interest and/or principal associated with this surplus note as of December 31, 2022 and 2021.

A surplus note with a carrying value of $60.0 as of December 31, 2022 was issued to Equitable Financial Life Insurance Company ("EFLIC"), an insurance company domiciled in the State of New York. The principal amount at issue on June 1, 2021 was $50.0. The Company and EFLIC amended this surplus note and increased the principal sum to $60.0 on December 31, 2021, with June 1, 2041 as the date of maturity. Interest expense for the period ended December 31, 2022 was $3.0. As of December 31, 2022, a total of $4.4 in interest expense has been recognized life-to-date. The interest rate associated with this surplus debenture is 5.00%. There was an immaterial amount of unapproved interest and/or principal associated with this surplus note as of December 31, 2022 and 2021.

Payment of the notes and related accrued interest is subordinate to payments due to policyholders, claimant and beneficiary claims, as well as debts owed to all other classes of debtors, other than surplus note holders, of the Company in the event of (a) the institution of bankruptcy, reorganization, insolvency, or liquidation proceedings by or against the Company, or (b) the appointment of a Trustee, receiver or other conservator for a substantial part of the Company’s properties. Any payment of principal and/or interest made is subject to the prior approval of the Iowa Insurance Commissioner.

The Company paid an ordinary dividend in the amount of $32.0 to its sole shareholder, Venerable Holdings, on December 9, 2022, after providing notice to the Iowa Insurance Division.

On April 25, 2022, the Company received an ordinary dividend in the amount of $190.0 from its direct, wholly-owned subsidiary, CSLR, after CSLR provided notice to the Delaware Department of Insurance per the notice requirements.

The Company paid an ordinary dividend and return of capital distribution in the amounts of $70.0 and $80.0 respectively, for an aggregate amount of $150.0 to its sole shareholder, Venerable Holdings, on November 15, 2021 after providing notice to the Iowa Insurance Division.

Life and health insurance companies are subject to certain RBC requirements as specified by the NAIC. Under those requirements, the amount of capital and surplus maintained by a life and health insurance company is to be determined based on the various risk factors related to it. The Company exceeded the minimum RBC requirements that would require any regulatory or corrective action for all periods presented herein.

13.	Fair Values of Financial Instruments

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

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

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

In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the financial instrument. Accordingly, the aggregate fair value amounts presented herein do not represent the underlying value of the Company.

Life insurance liabilities that contain mortality risk and all non-financial instruments have been excluded from the disclosure requirements. However, the fair values of liabilities under all insurance contracts are taken into consideration in the Company’s overall management of interest rate risk, such that the Company’s exposure to changing interest rates is minimized through the matching of investment maturities with amounts due under insurance contracts.

The following methods and assumptions are used by the Company in estimating the fair value disclosures for financial instruments in the accompanying financial statements and notes thereto:

Cash, cash equivalents and short-term investments: The carrying amounts reported in the accompanying balance sheets for these financial instruments approximate their fair values.

Bonds and equity securities: The Company utilizes a number of valuation methodologies to determine the fair values of its bonds, preferred stocks and common stocks reported herein in conformity with the concepts of “exit price” and the fair value measurement as prescribed in SSAP No. 100, Fair Value ("SSAP No. 100"). Valuations are obtained from third party commercial pricing services and asset managers.

Mortgage loans: Estimated fair values for commercial real estate loans were provided by asset managers.

Individual and group annuities: The fair values for individual and group annuities with defined maturities are estimated using discounted cash flow calculations, based on interest rates currently being offered for similar contracts with maturities consistent with those remaining for the contracts being valued. For individual and group annuities, fair value is estimated to be the present surrender value.

The carrying value of all other financial instruments approximates their fair value.

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

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The Company's financial assets and liabilities have been classified, for disclosure purposes, based on a hierarchy defined by SSAP No. 100.

The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded at fair value on the balance sheets are categorized as follows:

▪	Level 1 - Unadjusted quoted prices for identical assets or liabilities in an active market.

▪	Level 2 - Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:

a)	Quoted prices for similar assets or liabilities in active markets;

b)	Quoted prices for identical or similar assets or liabilities in non-active markets;

c)	Inputs other than quoted market prices that are observable; and

d)	Inputs that are derived principally from or corroborated by observable market data through correlation or other means.

▪

Level 3 - Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These valuations, whether derived internally or obtained from a third party, use critical assumptions that are not widely available to estimate market participant expectations in valuing the asset or liability.

The following valuation methods and assumptions were used by the Company in estimating the reported values for the investments described below:

Bonds and other invested assets: Securities that are carried at fair value on the balance sheet are classified as Level 1, Level 2 or Level 3. The fair value of bonds and other invested assets classified as Level 1 are obtained through unadjusted quoted prices for identical assets or liabilities in an active market. Level 2 bond prices are obtained through several commercial pricing services, which incorporate a variety of market observable information in their valuation techniques, including benchmark yields, broker-dealer quotes, credit quality, issuer spreads, bids, offers and other reference data to provide estimated fair values. The fair value for privately placed bonds and other invested assets are provided by asset managers and are classified as Level 3 assets.

Preferred and Common Stocks: Fair values of publicly traded equity securities are based upon quoted market prices and are classified as Level 1 assets. Fair values of private equities or equity securities not traded on an exchange, are provided by asset managers and are classified as Level 3 assets.

Cash and short-term investments: The carrying amounts for cash reflect the assets’ fair values. The fair values for cash equivalents and short-term investments are determined based on quoted market prices. These assets are classified as Level 1.

Assets held in separate accounts: Assets held in separate accounts, excluding MVA’s, are reported at the quoted fair values of the underlying investments in the separate accounts. The underlying investments can include mutual funds, short-term investments and cash, the valuation of which are based upon a quoted market price and are included in Level 1. The underlying investments can also include bonds the valuation of which are obtained from third party commercial pricing services and brokers and are classified in the fair value hierarchy as either Level 2 or Level 3, consistent with the policies described above for fixed maturities.

Mortgage loans: The fair values for mortgage loans are provided by asset managers. Mortgage loans are classified as Level 3.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

Contract loans: The fair value of contract loans approximates the carrying value of the loans. Contract loans are collateralized by the cash surrender value of the associated insurance contracts and are classified as Level 1.

Deposit type contracts: Fair value is estimated as the present value of expected cash flows associated with the contract liabilities discounted using risk-free rates plus an adjustment for nonperformance risk. The valuation is consistent with current market parameters. Margins for non-financial risks associated with the contract liabilities are also included. These liabilities are classified as Level 3.

The following table shows the Company’s financial instruments and the Level within the fair value hierarchy in which the fair value measurements fall as of December 31, 2022:

	Aggregate Fair Value		Carrying Value		Level 1		Level 2		Level 3
	(In Thousands)
Assets:
Fixed maturities, including securities pledged	$	7,770,796	$	8,513,944	$	20,141	$	7,594,572	$	156,083
Preferred stock		51,126		45,310		7,036		38,413		5,678
Common stock		10,000		10,000		—		10,000		—
Mortgage loans		1,682,889		1,788,620		—		3,378		1,679,511
Contract loans		3,283		3,283		3,283		—		—
Other invested assets		66,322		81,097		—		66,322		—
Cash, cash equivalents and short-term investments		153,441		153,462		138,786		1,811		12,844
Separate account assets*		18,235,611		18,254,229		17,945,123		246,531		43,957
Total assets	$	27,973,468	$	28,849,945	$	18,114,369	$	7,961,027	$	1,898,073

Liabilities:
Deposit type contracts	$	1,130,015	$	1,128,799	$	—	$	—	$	1,130,015
Total liabilities	$	1,130,015	$	1,128,799	$	—	$	—	$	1,130,015
* These amounts reflect prescribed or permitted practices that depart from the NAIC Accounting Practices and Procedures Manual, see Note 3, Summary of Significant Accounting Polices for additional information.

The Company did not have any financial instruments for which it was not practicable to estimate fair value as of December 31, 2022.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The following table shows the Company’s financial instruments and the Level within the fair value hierarchy in which the fair value measurements fall as of December 31, 2021:

	Aggregate Fair Value		Carrying Value		Level 1		Level 2		Level 3
	(In Thousands)
Assets:
Fixed maturities, including securities pledged	$	9,094,369	$	8,548,520	$	9,718	$	8,874,546	$	210,104
Preferred stock		60,903		60,491		9,074		40,605		11,224
Common stock		10,000		10,000		—		10,000		—
Mortgage loans		2,301,551		2,195,274		—		—		2,301,551
Contract loans		3,676		3,676		3,676		—		—
Other invested assets		43,185		37,415		—		43,186		—
Cash, cash equivalents and short-term investments		173,873		173,873		172,870		1,003		—
Separate account assets*		25,410,484		25,372,984		25,014,682		325,944		69,858
Total assets	$	37,098,041	$	36,402,233	$	25,210,020	$	9,295,284	$	2,592,737

Liabilities:
Deposit type contracts	$	939,562	$	928,304	$	—	$	—	$	939,562
Total liabilities	$	939,562	$	928,304	$	—	$	—	$	939,562
* These amounts reflect prescribed or permitted practices that depart from the NAIC Accounting Practices and Procedures Manual, see Note 3 for additional information.

The Company did not have any financial instruments for which it was not practicable to estimate fair value as of December 31, 2021.

The following tables show assets and liabilities measured and reported at fair value in which the fair value measurements use quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2) and significant unobservable inputs (Level 3) as of December 31, 2022:

	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Bonds
Industrial and Misc		—		11,046		—		11,046
Total Bonds		—		11,046		—		11,046
Preferred stock		7,036		24,965		—		32,001
Common stock		—		10,000		—		10,000
Separate account assets*		17,933,104		—		—		17,933,104
Total assets	$	17,940,140	$	46,011	$	—	$	17,986,151

Liabilities:
Total liabilities	$	—	$	—	$	—	$	—
* These amounts reflect prescribed or permitted practices that depart from the NAIC Accounting Practices and Procedures Manual, see Note 3 for additional information.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The Company did not have any security transfers between Level 1 and Level 2 during 2022. The Company’s policy is to recognize transfers in and transfers out as of the beginning of the most recent quarterly reporting period.

	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Bonds
Foreign		—		11,911		—		11,911
Total Bonds		—		11,911		—		11,911
Preferred stock		9,074		36,601		—		45,675
Common stock		—		10,000		—		10,000
Other long-term assets		—		2,845		—		2,845
Separate account assets*		24,968,109		—		—		24,968,109
Total assets	$	24,977,183	$	61,357	$	—	$	25,038,540

Liabilities:
Total liabilities	$	—	$	—	$	—	$	—
* These amounts reflect prescribed or permitted practices that depart from the NAIC Accounting Practices and Procedures Manual, see Note 3 for additional information.

The Company did not have any security transfers between Level 1 and Level 2 during 2021. The Company’s policy is to recognize transfers in and transfers out as of the beginning of the most recent quarterly reporting period.

The Company did not have any changes in fair value of the Company's Level 3 assets and liabilities for the year ended December 31, 2022.

There were no transfers in and out of Level 3 during the year ended December 31, 2022.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The following table summarizes the changes in fair value of the Company's Level 3 assets and liabilities for the year ended December 31, 2021.

Description	Beginning of the Year		Transfers into Level 3		Transfers Out of Level 3		Total Gains and (Losses) Included in Net Income		Total Gains and (Losses) Included in Surplus		Purchases		Issuances		Sales			Settlements		End of the Year
	(In Thousands)
Preferred Stock		—		4		—		—		—		—		—		(4	)		—		—
Common Stock		12		—		—		—		—		—		—		(12	)		—		—
Separate accounts*		1,690		—		—		—		—		—		—		(1,690	)		—		—
Total	$	1,702	$	4	$	—	$	—	$	—	$	—	$	—	$	(1,706	)	$	—	$	—

* These amounts reflect prescribed or permitted practices that depart from the NAIC Accounting Practices and Procedures Manual, see Note 3, Summary of Significant Accounting Polices for additional information.

Transfers in and out of Level 3 during the year ended December 31, 2021 are due to the variation in inputs relied upon for valuation each quarter. Securities that are primarily valued using independent broker quotes when prices are not available from one of the commercial pricing services are reflected as transfers into Level 3, as these securities are generally less liquid with very limited trading activity or where less transparency exists corroborating the inputs to the valuation methodologies. When securities are valued using more widely available information, the securities are transferred out of Level 3 and into Level 1 or 2, as appropriate.

14.	Commitments and Contingencies

Legal Proceedings - The Company is involved in threatened or pending lawsuits/arbitrations arising from the normal conduct of business. Due to the climate in insurance and business litigation/arbitration, suits against the Company sometimes include claims for substantial compensatory, consequential or punitive damages and other types of relief. Certain claims may be asserted as class actions, purporting to represent a group of similarly situated individuals. In addition, the life insurance industry has experienced litigation alleging, for example, that insurance companies have breached the terms of their life insurance policies by increasing the insurance rates of the applicable policies inappropriately or by factoring into rate adjustments elements not disclosed under the terms of the applicable policies, and, consequently, unjustly enriched themselves. This litigation is generally known as cost of insurance litigation. While it is not possible to forecast the outcome of such lawsuits/arbitrations, in light of existing insurance, reinsurance and established reserves, it is the opinion of management that the disposition of such lawsuits/arbitrations will not have a material adverse effect on the Company's operations or financial position.

Regulatory Matters - As with many financial services companies, the Company and its affiliates periodically receive informal and formal requests for information from various state and federal governmental agencies and self-regulatory organizations in connection with examinations, inquiries, investigations and audits of the products and practices of the Company or the financial services industry. Any such investigations, examinations, audits and inquiries could result in regulatory action against the Company. The potential outcome of such regulatory action would be difficult to predict but could subject the Company to adverse consequences, including, but not limited to, additional payments to beneficiaries, settlement payments, penalties, fines and other financial liability, and changes to the Company's policies and procedures. The potential economic consequences cannot be predicted, but management does not believe that the outcome of any such action would have a material adverse effect on the Company's financial position. It is the practice of the Company and its affiliates to cooperate fully in these matters.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The outcome of lawsuits/arbitrations or regulatory matters and the amount or range of potential loss is difficult to forecast, and estimating potential losses requires significant management judgement. It is not possible to predict the ultimate outcome for all pending lawsuits/arbitrations and regulatory matters, and given the large and indeterminate amounts sought and the inherent unpredictability of such matters, it is possible that an adverse outcome in certain lawsuits/arbitrations or regulatory matters could, from time to time, have a material adverse effect on the Company's results of operations or cash flows in the period.

Investment Purchase Commitments: As part of its overall investment strategy, the Company has entered into agreements to purchase private placements and commercial mortgages of $10.5 and $15.0 at December 31, 2022 and 2021, respectively. The Company is also committed to provide additional capital contributions to partnerships of $0.0 and $317.7 at December 31, 2022 and 2021, respectively.

Liquidity: The Company’s principal sources of liquidity are product charges, investment income, premiums, proceeds from the maturity and sale of investments, and capital contributions. Primary uses of these funds are payments of commissions and operating expenses, interest credits, investment purchases, and contract maturities, death benefits, withdrawals, surrenders, and dividends to its parent.

The Company’s liquidity position is managed by maintaining adequate levels of liquid assets, such as cash, cash equivalents, and short-term investments. In addition, the investment portfolio is primarily composed of high quality fixed income investments, which include holdings of U.S. Government securities, high quality corporate bonds and agency backed residential mortgage-backed securities. Asset/liability management is integrated into many aspects of the Company’s operations, including investment decisions, product development, and determination of crediting rates. As part of the risk management process, different economic scenarios are modeled, including cash flow testing required for insurance regulatory purposes, to determine that existing assets are adequate to meet projected liability cash flows. Key variables in the modeling process include interest rates, anticipated contract owner behavior, and variable separate account performance. Contract owners bear the investment risk related to variable annuity products, subject, in limited cases, to certain minimum guaranteed rates.

The fixed account liabilities are supported by a general account portfolio principally composed of fixed rate investments with matching duration characteristics that can generate predictable, steady rates of return. The portfolio management strategy for the general account considers the assets available-for-sale. This strategy enables the Company to respond to changes in market interest rates, prepayment risk, relative values of asset sectors and individual securities and loans, credit quality outlook, and other relevant factors. The Company’s asset/liability management discipline includes strategies to minimize exposure to loss as interest rates and economic and market conditions change. In executing this strategy, the Company may use derivative instruments to manage these risks. The Company’s derivative counterparties are of high credit quality.

On May 27, 2022, Kroll Bond Rating Agency ("KBRA") affirmed an insurance financial strength rating of A- to the Company, and affirmed its debt rating of BBB to the Company's surplus notes.

On June 1, 2021, KBRA affirmed an insurance financial strength rating of A- to the Company, and affirmed its debt rating of BBB to the Company's surplus notes.

The ratings of the Company by the rating agency are based on the rating agency's specific views of the Company’s financial strength.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

15.	Financing Agreements

The Company maintains a reciprocal loan agreement with Venerable Holdings to promote efficient management of cash and liquidity and to provide for short-term cash requirements. Under this agreement, which expires June 1, 2028, the Company and Venerable Holdings can lend funds to or borrow from each other up to 3% of the Company’s admitted assets excluding separate accounts as of the 31st day of December next preceding.

The Company borrowed $22.0 on March 30, 2022 under this agreement, which matured and was paid on April 8, 2022, and incurred an immaterial amount of interest expense.

The Company borrowed $10.0 on April 7, 2022 under this agreement, which matured and was paid on April 20, 2022, and incurred an immaterial amount of interest expense.

The Company borrowed $27.0 on April 13, 2022 under this agreement, which matured and was paid on April 19, 2022, and incurred an immaterial amount of interest expense.

The Company borrowed $15.0 on April 19, 2022 under this agreement, which matured and was paid on April 26, 2022, and incurred an immaterial amount of interest expense.

The Company borrowed $30.0 on April 20, 2022 under this agreement, which matured and was paid on April 27, 2022, and incurred an immaterial amount of interest expense.

As of December 31, 2022, the Company had no outstanding receivable or outstanding payable balance with Venerable Holdings under the reciprocal loan agreement. The Company did not engage in any lending or borrowing under this agreement during the year ended December 31, 2021, and therefore did not incur any interest expense or receive any interest income.

16.	Related Party Transactions

The Company has entered into various management and services contracts and cost sharing arrangements with other affiliated Venerable Holdings companies which are allocated among companies in accordance with systematic cost allocation methods. The Company's material related party agreements are detailed below:

Investment Management: The Company has entered into an investment advisory agreement with Apollo Insurance Solutions Group ("Apollo ISG") under which Apollo ISG provides the Company with investment management services. For the year ended December 31, 2022 and 2021, expenses incurred related to this agreement were $32.3 and $35.3, respectively.

Service Agreements: The Company has entered into an inter-company agreement with its affiliates whereby the affiliates provide certain administrative, management, professional, advisory, consulting, and other services to each other. Management and service contracts and all cost-sharing arrangements are allocated among companies in accordance with systematic cost allocation methods. For the year ended December 31, 2022 and 2021, expenses incurred related to this agreement were $86.9 and $98.0, respectively.

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The Company receives a monthly fee from DSL based on annual contractual rates by fund. This fee is calculated as a percentage of average assets in the variable separate accounts. Revenue earned by the Company under this arrangement was $40.4 and $52.5 for the years ended December 31, 2022 and 2021, respectively.

The Company has entered into an underwriting and distribution agreement with DSL, whereby DSL serves as the principal underwriter for annuity contracts issued by the Company. DSL is authorized to enter into agreements with broker-dealers to distribute the Company's annuity contracts and appoint representatives of the broker-dealers as agents. For the periods ended December 31, 2022 and 2021, commissions were incurred in the amounts of $114.6 and $143.3, respectively.

See Note 11 regarding reinsurance agreements with related parties.

Tax Sharing Agreements: See Note 9 for disclosure related to the federal tax sharing agreement.

17.	Guaranty Fund Assessments

Insurance companies are assessed the costs of funding the insolvencies of other insurance companies by the various state guaranty associations, generally based on the amount of premium companies collect in that state. The Company accrues for the cost of potential future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and Health Insurance Guaranty Associations and the amount of premiums written in each state. The accrual methodology follows a retrospective-premium-based guaranty-fund assessments construct. The Company has estimated and recorded this liability to be $0.1 and $0.1 as of December 31, 2022 and 2021, respectively, and is reflected in accounts payable and accrued expenses on the balance sheets. The Company has also recorded an asset in other assets on the balance sheets of $0.5 and $0.5 as of December 31, 2022 and 2021, respectively, for future credits to premium taxes for assessments already paid and/or accrued. The periods over which the guaranty fund assessments are expected to be paid, the related premium tax offsets are expected to be realized and the additional industry support is expected to be paid are unknown at this time.

There are no premium tax offsets where it is reasonably possible that an impairment has occurred in accordance with SSAP No. 5R, Liabilities, Contingencies and Impairments of Assets ("SSAP No. 5R").

A reconciliation of assets recognized is presented below:

	Year ended December 31
	2022		2021
	(In Thousands)
Assets recognized from paid and accrued premium tax offsets as of December 31, 2021	$	522	$	528

Decreases current year:
Premium tax offset applied		43		33
Changes in premium tax offset capacity/other adjustments		29		7

Increases current year:
GFA Liability Adjustment to estimate		9		29
Creditable assessments remitted		3		5

Assets recognized from paid and accrued premium tax offsets as of December 31, 2022	$	462	$	522

VENERABLE INSURANCE AND ANNUITY COMPANY

Notes to Financial Statements – Statutory Basis

December 31, 2022

(Dollar amounts in millions, unless otherwise stated)

The following tables show guaranty fund liabilities and assets related to assessments from insolvencies as of December 31, 2022:

Discount Rate Applied

2.50 %

The undiscounted and discounted amount of the guaranty fund assessments and related assets by insolvency:

	Guaranty Fund Assessment		Related Assets
Name of Insolvency	Undiscounted	Discounted	Undiscounted	Discounted
	(In Thousands)
Senior American Life Insurance Company	$ 3	$ 2	$ 3	$ 2

The Company did not have any number of jurisdictions, ranges of years used to discount, and weighted average number of years of the discounting time period for payables and recoverables by insolvency as of December 31, 2022.

The following tables show guaranty fund liabilities and assets related to assessments from insolvencies as of December 31, 2021:

Discount Rate Applied

2.50%

The undiscounted and discounted amount of the guaranty fund assessments and related assets by insolvency:

	Guaranty Fund Assessment				Related Assets
Name of Insolvency	Undiscounted		Discounted		Undiscounted		Discounted
	(In Dollars)
Penn Treaty	$	14	$	13	$	14	$	13
Senior American Life Insurance Company	$	4,474	$	3,955	$	4,474	$	3,955

18.	Subsequent Events

The Company paused its reinsurance of GMIB annuitizations to AARe and AADE, indirect and wholly-owned subsidiaries of Athene, effective January 1, 2023, and for a minimum period of twelve months. GMIB annuitizations previously reinsured to AARe and AADE remain with each company, while GMIB annuitizations occurring on or after January 1, 2023 will be held by CSLR, the Company's direct, wholly-owned subsidiary, pursuant to the coinsurance and modified coinsurance agreement in place between the Company and CSLR.

The Company is not aware of any additional events occurring subsequent to December 31, 2022 that may have a material effect on the Company’s financial statements. The Company evaluated events subsequent to December 31, 2022 through March 30, 2023, the date the statutory financial statements were available to be issued.

Supplementary Information

Report of Independent Auditors on Supplementary Information

The Board of Directors and Stockholder Venerable Insurance and Annuity Company

We have audited the statutory-basis financial statements of Venerable Insurance and Annuity Company (the Company) as of and for the year ended December 31, 2022 and 2021, and have issued our report thereon dated March 30, 2023, which contained an adverse opinion with respect to conformity with U.S. generally accepted accounting principles and an unmodified opinion with respect to conformity with accounting practices prescribed or permitted by the Insurance Division, Department of Commerce, of the State of Iowa on those financial statements. Our audit was performed for the purpose of forming an opinion on the financial statements as a whole. The accompanying supplemental schedule of selected statutory-basis financial data, supplemental schedule of life and health reinsurance disclosures, and supplemental investment disclosures are presented to comply with the National Association of Insurance Commissioners’ Annual Statement Instructions and the National Association of Insurance Commissioners’ Accounting Practices and Procedures Manual and for purposes of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the statutory-basis financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole.

Restriction on Use

This report is intended solely for the information and use of the Company and state insurance departments to whose jurisdiction the Company is subject and is not intended to be and should not be used by anyone other than these specified parties.

March 30, 2023

VENERABLE INSURANCE AND ANNUITY COMPANY

Supplemental Schedule of Selected Statutory Basis Financial Data

December 31, 2022

(In Thousands)

Investment Income Earned:
U.S. government bonds	$	295
Other bonds (unaffiliated)		389,100
Bonds of affiliates		1,597
Preferred stocks (unaffiliated)		2,404
Common stocks (unaffiliated)		462
Common stocks of affiliates		190,000
Mortgage loans		102,573
Contract loans		435
Cash on hand and on deposit		4,050
Short-term investments		159
Other invested assets		27,018
Gross investment income	$	718,093

Mortgage Loans (Book Value):
Commercial mortgages	$	1,788,620
Total mortgage loans	$	1,788,620

Mortgage Loans by Standing (Book Value):
Good standing	$	1,788,620
Total mortgage loans by standing	$	1,788,620

Other long-term assets (statement value)	$	401,531

Contract loans	$	3,283

Bonds and Stocks of Parents, Subsidiaries and Affiliates (Book Value):
Bonds	$	500,955
Common Stocks		1,488,766
Total Bonds and Stocks of Parents, Subsidiaries and Affiliates	$	1,989,721

VENERABLE INSURANCE AND ANNUITY COMPANY

Supplemental Schedule of Selected Statutory Basis Financial Data

December 31, 2022

(In Thousands)

Bonds and Short-term Investments by NAIC Designation and Maturity:
Bonds and Short-term Investments by Maturity (Statement Value):
Due within 1 year or less	$	578,133
Over 1 year through 5 years		2,784,835
Over 5 years through 10 years		2,668,447
Over 10 years through 20 years		1,679,830
Over 20 years		819,020
Total by maturity	$	8,530,265

Bonds and Short-term Investments by NAIC Designation (Statement Value):
NAIC 1	$	3,922,032
NAIC 2		4,333,278
NAIC 3		208,548
NAIC 4		58,445
NAIC 5		4,096
NAIC 6		3,866
Total by NAIC Designation	$	8,530,265

Total bonds and short-term investments publicly traded	$	2,898,521

Total bonds and short-term investments privately placed	$	5,631,744

Preferred stocks (statement value)	$	45,310

Common stocks, including subsidiaries (market value)	$	1,498,766

Short-term investments (book value)	$	18,734

Cash equivalents	$	66,753

Financial options owned (statement value)	$	—

Financial options written and in force (statement value)	$	—

Financial collar, swap and forward agreements open (statement value)	$	—

Financial futures contracts open (current value)	$	—

Cash on deposit	$	121,133

Life Insurance in Force:
Ordinary	$	1,696

Group life	$	52

Amount of accidental death insurance in force under ordinary policies	$	32

VENERABLE INSURANCE AND ANNUITY COMPANY

Supplemental Schedule of Selected Statutory Basis Financial Data

December 31, 2022

(In Thousands)

Life Insurance Policies with Disability Provisions in Force:
Ordinary	$	52

Group life	$	—

Supplementary Contracts in Force:
Ordinary-not involving life contingencies:
Amount on deposit	$	628

Income payable	$	110,276

Ordinary-involving life contingencies:
Amount on deposit	$	—

Amount of income payable	$	98,828

Group-not involving life contingencies:
Amount on deposit	$	—

Amount of income payable	$	—

Group-involving life contingencies:
Amount on deposit	$	—

Amount of income payable	$	—

Annuities:
Ordinary:
Immediate-amount of income payable	$	41,793

Deferred-fully paid account balance	$	11,239,481

Deferred-not fully paid account balance	$	5,441,945

Group:
Amount of income payable	$	3

Fully paid account balance	$	10,970,257

Not fully paid account balance	$	162,544

Accident and Health Insurance Premiums in Force:
Ordinary	$	—

Group	$	—

Deposit Funds and Dividend Accumulations:
Deposit funds-account balance	$	—

Dividend accumulations-account balance	$	—

VENERABLE INSURANCE AND ANNUITY COMPANY

Investment Risk Interrogatories

December 31, 2022

(In Thousands)

I.	Investment Risk Interrogatories

The Company’s total admitted assets (excluding separate account assets) as reported on page two of its Annual Statement for the year ended December 31, 2022 is $12.6 billion.

Following are the 10 largest exposures to a single issuer/borrower/investment, by investment category, excluding: (i) U.S. government, U.S. government agency securities and those U.S. government money market funds listed in the Appendix to the SVO Practices and Procedures Manual as exempt, (ii) property occupied by the Company, and (iii) contract loans:

Issuer

Investment Category

Amount

Percentage of Total Admitted Assets*

Corporate Solutions Life Reinsurance Company

Common Stock

1,488,516

11.8

ii.

SVF II FINCO (CAYMAN) LP

Bonds

144,088

1.1

iii.

Ap Tundra Holdings LLC

Bonds

133,922

1.1

iv.

Ace Credit Fund, LP

Bonds

131,423

1.0

Cayman Universe Holdings LLC

Bonds

116,117

0.9

vi.

H&R NNN POOL 3

Mortgage Loans

94,281

0.7

vii.

Aa Infrastructure Fund 1 Ltd

Bonds

87,429

0.7

viii.

Altsco - Core (feeder A)

Joint Venture-Common Stock

68,325

0.5

ix.

Goldman Sachs Trust - Goldman Sachs Financial Square Government Fund

Money Market Mutual Fund

56,000

0.4

AOP Finance Partners, L.P.

Bonds

54,245

0.4

2.	The Company’s total admitted assets held in bonds and short-term investments (excluding reciprocal borrowings) and preferred stocks, by NAIC designating at December 31, 2022, are:

Bonds						Preferred Stocks
NAIC Rating	Amount		Percentage of Total Admitted Assets*			NAIC Rating	Amount		Percentage of Total Admitted Assets*
NAIC-1	$	3,922,032		31.0	%	P/RP-1	$	11,209		0.1	%
NAIC-2		4,333,278		34.3		P/RP-2		29,687		0.2
NAIC-3		208,548		1.6		P/RP-3		4,414		0.0
NAIC-4		58,445		0.5		P/RP-4		—		—
NAIC-5		4,096		0.0		P/RP-5		—		—
NAIC-6		3,866		0.0		P/RP-6		—		—
	$	8,530,265					$	45,310

Following are the Company’s total admitted assets held in foreign investments (regardless of whether there is any foreign currency exposure) and unhedged foreign currency exposure (defined as the statement value of investments denominated in foreign currencies which are not hedged by financial instruments qualifying for hedge accounting as specified in SSAP No. 86, including: (i) foreign currency denominated investments of $0 million supporting insurance liabilities denominated in that same foreign currency of $0 million, and excluding (ii) Canadian investments of $221.5 million which includes unhedged currency exposure of $0 million as of December 31, 2022):

VENERABLE INSURANCE AND ANNUITY COMPANY

Investment Risk Interrogatories

December 31, 2022

(In Thousands)

a.	Aggregate foreign investment exposure categorized by NAIC sovereign rating:

		Amount		Percentage of Total Admitted Assets*
i.	Countries rated NAIC-1	$	2,409,787		19.1	%
ii.	Countries rated NAIC-2		176,003		1.4
iii.	Countries rated NAIC-3 or below		22,071		0.2

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

		Amount		Percentage of Total Admitted Assets*
i.	Countries Rated NAIC-1:
	Country: Cayman Islands	$	1,181,167		9.3	%
	Country: Australia		282,253		2.2

ii.	Countries Rated NAIC-2:
	Country: Mexico		54,591		0.4
	Country: Indonesia		31,927		0.3

iii.	Countries Rated NAIC-3 or Below:
	Country: Brazil		8,646		0.1
	Country: Dominican Republic		7,355		0.1

c.	Aggregate unhedged foreign currency exposure: Not applicable.

d.	Aggregate unhedged foreign currency exposure categorized by NAIC sovereign designating: Not applicable.

e.	The two largest unhedged foreign currency exposures to a single country, categorized by the country’s NAIC sovereign rating: Not applicable.

f.	The ten largest non–sovereign (i.e. non–governmental) foreign issues:

	Name	NAIC Rating		Amount		Percentage of Total Admitted Assets*
i.	Cayman Universe Holdings LLC		1	$	116,117		0.9	%
ii.	Aa Infrastructure Fund 1 Ltd		1		87,429		0.7
iii.	RR 19 Ltd.		1,2		52,110		0.4
iv.	Crédit Agricole S.A.		1,2		36,489		0.3
v.	HSBC Holdings plc		1,2		27,848		0.2
vi.	Severn Trent Water Limited		2		26,000		0.2
vii.	Diameter Credit Funding I Ltd		1,2		24,719		0.2
viii.	Golub Capital Partners Clo 24 M-R Ltd		1		23,521		0.2
ix.	Agl Clo 6 Ltd.		1,2		23,425		0.2
x.	RRPF Engine Leasing Limited		2		23,002		0.2

VENERABLE INSURANCE AND ANNUITY COMPANY

Investment Risk Interrogatories

December 31, 2022

(In Thousands)

4.	Assets held in Canadian investments are less than 2.5% of the Company’s total admitted assets.

5.	Assets held in investments with contractual sales restrictions are less than 2.5% of the Company’s total admitted assets.

6.	Assets held in equity interests are greater than 2.5% of the Company’s total admitted assets.

		Amount		Percentage of Total Admitted Assets*
i.	Corporate Solutions Life Reinsurance Company	$	1,488,516		11.8	%
ii.	Altsco - Core (feeder A)		68,325		0.5
iii.	The Doctors Company		20,000		0.2
iv.	The Bank of New York Mellon Corporation		15,838		0.1
v.	Farmers Exchange Capital II		15,376		0.1
vi.	Federal Home Loan Bank of Des Moines		10,000		0.1
vii.	The Western and Southern Life Insurance Company		8,957		0.1
viii.	New York Life Insurance Company		8,613		0.1
ix.	Teachers Insurance and Annuity Association of America		7,464		0.1
x.	The Charles Schwab Corporation		7,210		0.1

7.	Assets held in nonaffiliated, privately placed equities are less than 2.5% of the Company’s total admitted assets.

8.	Assets held in general partnership interests are less than 2.5% of the Company’s total admitted assets.

9.	With respect to mortgage loans, the Company’s total admitted assets are as follows:

a.	The 10 largest aggregate mortgage interests. The aggregate mortgage interest represents the combined value of all mortgages secured by the same property or same group of properties:

Type/Property		Amount		Percentage of Total Admitted Assets*
i.	H&R NNN POOL 3	$	94,281		0.7	%
ii.	RENAISSANCE SQUARE		39,940		0.3
iii.	181 Fremont Office Senior Mezz LLC		35,154		0.3
iv.	666 5TH AVENUE		30,000		0.2
v.	AON CENTER		30,000		0.2
vi.	245 PARK AVENUE MEZZ A LLC		29,923		0.2
vii.	Hpa Jv Borrower 2019-1 Ath Llc		29,188		0.2
viii.	Win Ridge Shopping Center-DE LLC		28,897		0.2
ix.	Palm Springs Mile Associates, Ltd		27,394		0.2
x.	Mericle 3 Great Valley, LLC		21,350		0.2

VENERABLE INSURANCE AND ANNUITY COMPANY

Investment Risk Interrogatories

December 31, 2022

(In Thousands)

The Company's total admitted assets held in the following categories of mortgage loans as of December 31, 2022:

	Amount		Percentage of Total Admitted Assets*

i. Construction loans	$	—		0.0	%
ii. Mortgage loans over 90 days past due		—		—
iii. Mortgage loans in the process of foreclosure		—		—
iv. Mortgage loans foreclosed		—		—
v. Restructured mortgage loans		—		—

Aggregate mortgage loans having the following loan to value ratios as determined from the most current appraisal as of December 31, 2022:

		Residential					Commercial					Agricultural
	Loan-to-Value	Amount		Percentage of Total Admitted Assets*			Amount		Percentage of Total Admitted Assets*			Amount		Percentage of Total Admitted Assets*
i.	above 95%	$	—		—	%	$	—		—	%	$	—		—	%
ii.	91% to 95%		—		—			—		—			—		—
iii.	81% to 90%		—		—			—		0.0			—		—
iv.	71% to 80%		—		—			166,467		1.3			—		—
v.	below 70%		—		—			1,622,153		12.8			—		—
		$	—				$	1,788,620				$	—

10.	Assets held in each of the five largest investments in one parcel or group of contiguous parcels of real estate are less than 2.5% of the Company’s total admitted assets.

11.	The Company’s total admitted assets subject to the following types of agreements as of December 31, 2022:

Unaudited At End of Each Quarter

At Year End

1st Quarter

2nd Quarter

3rd Quarter

Amount

Percentage of Total Admitted Assets*

Amount

Securities lending (do not include assets held as collateral for such transactions)

—

ii.

Repurchase agreements

—

iii.

Reverse repurchase agreements

—

iv.

Dollar repurchase agreements

—

Dollar reverse repurchase agreements

—

VENERABLE INSURANCE AND ANNUITY COMPANY

Investment Risk Interrogatories

December 31, 2022

(In Thousands)

12.	Amounts and percentages of the Company’s total admitted assets for warrants not attached to other financial instruments, options, caps, and floors as of December 31, 2022:

		Owned					Written
		Amount		Percentage of Total Admitted Assets*			Amount		Percentage of Total Admitted Assets*
i.	Hedging	$	—		—	%	$	—		0.0	%
ii.	Income generation		—		—			—		—
iii.	Other		—		—			—		—

13.	The Company’s potential exposure (defined as the amount determined in accordance with the NAIC Annual Statement Instructions) for collars, swaps, and forwards as of December 31, 2022:

Unaudited At End of Each Quarter

At Year End

1st Quarter

2nd Quarter

3rd Quarter

Amount

Percentage of Total Admitted Assets*

Amount

Hedging

—

ii.

Income Generation

—

iii.

Replications

—

iv.

Other

—

14.	The Company’s potential exposure (defined as the amount determined in accordance with NAIC Annual Statement Instructions) for futures contracts as of December 31, 2022:

Unaudited At End of Each Quarter

At Year End

1st Quarter

2nd Quarter

3rd Quarter

Amount

Percentage of Total Admitted Assets*

Amount

Hedging

—

ii.

Income Generation

—

iii.

Replications

—

iv.

Other

—

VENERABLE INSURANCE AND ANNUITY COMPANY

Summary Investment Schedule

December 31, 2022

(In Thousands)

II.	Summary Investment Schedule

	Gross Investment Holdings*					Admitted Assets as Reported in the Annual Statement
Investment Categories	Amount		Percentage of Total			Amount		Securities Lending Reinvested Collateral Amount		Total Amount		Percentage of Total
Long-Term Bonds (Schedule D, Part 1)
U.S. governments	$	20,694		0.2	%	$	20,694	$	—	$	20,694		0.2	%
All Other governments		112,184		0.9	%		112,184		—		112,184		0.9	%
U.S. states, territories and possessions, etc. guaranteed		35,302		0.3	%		35,302		—		35,302		0.3	%
U.S. political subdivisions of states, territories and possessions, guaranteed		76,945		0.6	%		76,945		—		76,945		0.6	%
U.S. special revenue and special assessment obligations, etc. non-guaranteed		5,372		—	%		5,372		—		5,372		—	%
Industrial and miscellaneous		7,647,600		61.4	%		7,647,600		—		7,647,600		61.4	%
Hybrid securities		98,019		0.8	%		98,019		—		98,019		0.8	%
Parent, subsidiaries and affiliates		500,955		4.0	%		500,955		—		500,955		4.0	%
Unaffiliated Bank loans		16,874		0.1	%		16,874		—		16,874		0.1	%
Total long-term bonds		8,513,945		68.3	%		8,513,945		—		8,513,945		68.3	%
Preferred stocks (Schedule D Part 2, Section 1)
Industrial and miscellaneous (Unaffiliated)		45,310		0.4	%		45,310		—		45,310		0.4	%
Total preferred stocks		45,310		0.4	%		45,310		—		45,310		0.4	%
Common stocks (Schedule D Part 2, Section 2)
Industrial and miscellaneous other (Unaffiliated)		10,000		0.1	%		10,000		—		10,000		0.1	%
Parent, subsidiaries and affiliates Other		1,488,766		11.9	%		1,488,766		—		1,488,766		11.9	%
Total common stocks		1,498,766		12.0	%		1,498,766		—		1,498,766		12.0	%
Mortgage loans (Schedule B)
Commercial mortgages		1,788,620		14.4	%		1,788,620				1,788,620		14.4	%
Total mortgage loans		1,788,620		14.4	%		1,788,620		—		1,788,620		14.4	%
Cash, cash equivalents and short-term investments
Cash (Schedule E, Part 1)		121,133		1.0	%		121,133		—		121,133		1.0	%
Cash equivalents (Schedule E, Part 2)		66,753		0.5	%		66,753		—		66,753		0.5	%
Short-term investments (Schedule DA)		18,734		0.2	%		18,734		—		18,734		0.2	%
Total cash, cash equivalents and short-term investments		206,620		1.7	%		206,620		—		206,620		1.7	%
Contract loans		3,283		—	%		3,283		—		3,283		—	%
Other invested assets (Schedule BA)		401,531		3.2	%		401,531		—		401,531		3.2	%
Receivables for securities		4,527		—	%		4,527		—		4,527		—	%
Total invested assets	$	12,462,602		100.0	%	$	12,462,602	$	—	$	12,462,602		100.0	%

VENERABLE INSURANCE AND ANNUITY COMPANY

Supplemental Schedule of Life and Health Reinsurance Disclosures

December 31, 2022

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

Has the Company reinsured any risk with any other entity under a reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) that is subject to Appendix A-791, Life and Health Reinsurance Agreements, and includes a provision that limits the reinsurer’s assumption of significant risks identified in Appendix A-791?

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

Yes No ☑

If yes, the number of reinsurance contracts to which such provisions apply would be disclosed here.

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

Yes No N/A ☑

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

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

Yes No ☑

If yes, the number of reinsurance contracts to which such provisions apply would be disclosed here.

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

Yes No N/A ☑

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

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

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

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

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

Yes No ☑

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

VENERABLE INSURANCE AND ANNUITY COMPANY

Supplemental Schedule of Life and Health Reinsurance Disclosures

December 31, 2022

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

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

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

Yes No N/A ☑

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

Yes No N/A ☑

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

VENERABLE INSURANCE AND ANNUITY COMPANY

Note to Supplementary Information

December 31, 2022

1. Basis of Presentation

The accompanying supplemental information presents selected statutory basis financial data as of December 31, 2022 and for the year then ended for purposes of complying with the National Association of Insurance Commissioners' Annual Statement Instructions and Accounting Practices and Procedures Manual and agrees to or is included in the amounts reported in the Company's 2022 Statutory Annual Statement as filed with the Iowa Insurance Division.

Subaccount	Statement of Operations	Statement of Changes in Net Assets
Invesco V.I. Balanced-Risk Allocation Fund - Series II Shares	For the year ended December 31, 2022	For each of the two years in the period ended December 31, 2022
American Funds Insurance Series Capital Income Builder Fund - Class 4
American Funds Insurance Series Global Growth Fund - Class 4
American Funds Insurance Series Growth Fund - Class 4
American Funds Insurance Series International Fund - Class 4
American Funds Insurance Series New World Fund - Class 4
American Funds Insurance Series® The Bond Fund of America - Class 4
American Funds Insurance Series® Washington Mutual Investors - Class 4
BlackRock Equity Dividend V.I. Fund - Class III
BlackRock Global Allocation V.I. Fund - Class III
BlackRock High Yield V.I. Fund - Class III
BlackRock 60/40 Target Allocation ETF V.I. Fund - Class III
Columbia VP Seligman Global Technology Fund - Class 2
Columbia Small Cap Value Fund, Variable Series - Class 2
Columbia Small Company Growth Fund, Variable Series - Class 1
Columbia VP Large Cap Growth Fund - Class 1
DWS Core Equity VIP - Class B
DWS Alternative Asset Allocation VIP - Class B
DWS High Income VIP - Class B
Eaton Vance VT Floating-Rate Income Fund - Initial Class
Federated Hermes High Income Bond Fund II - Service Shares
Federated Hermes Kaufmann Fund II - Service Shares
Fidelity® VIP Strategic Income Portfolio - Service Class 2
Fidelity® VIP Disciplined Small Cap Portfolio - Service Class 2
Fidelity® VIP FundsManager 20% Portfolio - Service Class 2
Fidelity® VIP FundsManager 60% Portfolio - Service Class 2
Fidelity® VIP FundsManager 85% Portfolio - Service Class 2
Franklin Small Cap Value VIP Fund - Class 2
Franklin Strategic Income VIP Fund - Class 2
Templeton Global Bond VIP Fund - Class 2
Delaware VIP Real Estate Securities - Class II
Delaware Ivy VIP Asset Strategy
Delaware Ivy VIP Balanced
Delaware Ivy VIP Energy
Delaware Ivy VIP High Income
Delaware Ivy VIP International Core Equity
Delaware Ivy VIP Mid Cap Growth
Delaware Ivy VIP Science and Technology
Delaware Ivy VIP Small Cap Core - Class II
Delaware Ivy VIP Small Cap Growth
Janus Henderson Balanced Portfolio - Service Shares
Janus Henderson Enterprise Portfolio - Service Shares
Janus Henderson Flexible Bond Portfolio - Service Shares
ClearBridge Var Aggressive Growth Portfolio II
ClearBridge Variable Mid Cap Portfolio - Class II
Western Asset Core Plus VIT Portfolio - Class I
MFS VIT II Income Portfolio - Service Class
MFS VIT Research Series Portfolio - Service Class
MFS VIT International Intrinsic Value Portfolio - Service Class
MFS VIT Value Series - Service Class
MFS VIT III Global Real Estate Portfolio - Service Class
Invesco V.I. Main Street Fund - Series II
Invesco V.I. Main Street Small Cap Fund - Series II
Invesco V.I. Discovery Mid Cap Growth Fund - Series II
Invesco Oppenheimer V.I. International Growth Fund - Series II
PIMCO All Asset Portfolio - Administrative Class
PIMCO Low Duration Portfolio - Administrative Class
PIMCO Real Return Portfolio - Administrative Class
PIMCO Short-Term Portfolio - Administrative Class
PIMCO Total Return Portfolio - Administrative Class
ProFund VP Europe 30
ProFund VP Rising Rates Opportunity	For the year ended December 31, 2022	For each of the two years in the period ended December 31, 2022
Putnam VT Income Fund - Class 1B
Putnam VT International Equity Fund - Class 1B
Putnam VT International Value Fund - Class 1B
Putnam VT Mortgage Securities Fund - Class 1B
Putnam VT Multi-Cap Core Fund - Class IB Shares
Putnam VT Small Cap Value Fund - Class 1B
T. Rowe Price Blue Chip Growth Portfolio - II
T. Rowe Price Health Sciences Portfolio - II
MFS VIT Utilities Series Portfolio - Service Class
Voya Balanced Portfolio - Class S
Voya Intermediate Bond Portfolio - Class A
Voya Intermediate Bond Portfolio - Class S
Voya Balanced Income Portfolio - Adviser Class
Voya Balanced Income Portfolio - Service Class
Voya Balanced Income Portfolio - Service 2 Class
Voya Global Perspectives® Portfolio - Class A
Voya Government Liquid Assets Portfolio - Class I
Voya Government Liquid Assets Portfolio - Service Class
Voya Government Liquid Assets Portfolio - Service 2 Class
Voya High Yield Portfolio - Adviser Class
Voya High Yield Portfolio - Service Class
Voya Large Cap Growth Portfolio - Adviser Class
Voya Large Cap Growth Portfolio - Institutional Class
Voya Large Cap Growth Portfolio - Service Class
Voya Large Cap Growth Portfolio - Service 2 Class
Voya Limited Maturity Bond Portfolio - Service Class
Voya Retirement Conservative Portfolio - Adviser Class
Voya Retirement Growth Portfolio - Adviser Class
Voya Retirement Moderate Growth Portfolio - Adviser Class
Voya Retirement Moderate Portfolio - Adviser Class
Voya U.S. Stock Index Portfolio - Service Class
VY® BlackRock Inflation Protected Bond Portfolio - Adviser Class
VY® BlackRock Inflation Protected Bond Portfolio - Service Class
VY CBRE Global Real Estate Portfolio - Adviser Class
VY CBRE Global Real Estate Portfolio - Service Class
VY CBRE Global Real Estate Portfolio - Service 2 Class
VY CBRE Real Estate Portfolio - Adviser Class
VY CBRE Real Estate Portfolio - Service Class
VY CBRE Real Estate Portfolio - Service 2 Class
VY® Invesco Growth and Income Portfolio - Adviser Class
VY® Invesco Growth and Income Portfolio - Service Class
VY® Invesco Growth and Income Portfolio - Service 2 Class
VY® JPMorgan Emerging Markets Equity Portfolio - Adviser Class
VY® JPMorgan Emerging Markets Equity Portfolio - Service Class
VY® JPMorgan Emerging Markets Equity Portfolio - Service 2 Class
VY® JPMorgan Small Cap Core Equity Portfolio - Adviser Class
VY® Morgan Stanley Global Franchise Portfolio - Adviser Class
VY® Morgan Stanley Global Franchise Portfolio - Service Class
VY® Morgan Stanley Global Franchise Portfolio - Service 2 Class
VY® T. Rowe Price Capital Appreciation Portfolio - Adviser Class
VY® T. Rowe Price Capital Appreciation Portfolio - Service Class
VY® T. Rowe Price Capital Appreciation Portfolio - Service 2 Class
Voya Global Bond Portfolio - Adviser Class
Voya Global Bond Portfolio - Service Class
Voya International High Dividend Low Volatility Portfolio - Adviser Class
Voya International High Dividend Low Volatility Portfolio - Service Class
Voya Solution 2025 Portfolio - Adviser Class
Voya Solution 2025 Portfolio - Service Class
Voya Solution 2035 Portfolio - Adviser Class
Voya Solution 2035 Portfolio - Service Class
Voya Solution 2045 Portfolio - Adviser Class
Voya Solution 2045 Portfolio - Service Class
Voya Solution 2055 Portfolio - Adviser Class
Voya Solution Income Portfolio - Adviser Class
Voya Solution Income Portfolio - Service Class
Voya Solution Moderately Aggressive Portfolio - Service Class	For the year ended December 31, 2022	For each of the two years in the period ended December 31, 2022
VY® American Century Small-Mid Cap Value Portfolio - Adviser Class
VY® American Century Small-Mid Cap Value Portfolio - Service Class
VY® Baron Growth Portfolio - Adviser Class
VY® Columbia Contrarian Core Portfolio - Adviser Class
VY® Columbia Small Cap Value II Portfolio - Adviser Class
VY® Columbia Small Cap Value II Portfolio - Service Class
VY® Invesco Equity and Income Portfolio - Adviser Class
VY® Invesco Equity and Income Portfolio - Initial Class
VY® Invesco Equity and Income Portfolio - Service Class
VY® Invesco Equity and Income Portfolio - Service 2 Class
VY® JPMorgan Mid Cap Value Portfolio - Adviser Class
VY® JPMorgan Mid Cap Value Portfolio - Service Class
VY® Invesco Global Portfolio - Adviser Class
VY® Invesco Global Portfolio - Initial Class
VY® Invesco Global Portfolio - Service Class
VY® T. Rowe Price Diversified Mid Cap Growth Portfolio - Adviser Class
VY® T. Rowe Price Diversified Mid Cap Growth Portfolio - Service Class
VY® T. Rowe Price Growth Equity Portfolio - Adviser Class
Voya Strategic Allocation Conservative Portfolio - Class S
Voya Strategic Allocation Growth Portfolio - Class S
Voya Strategic Allocation Moderate Portfolio - Class S
Voya Global High Dividend Low Volatility Portfolio - Class A
Voya Global High Dividend Low Volatility Portfolio - Class S
Voya Index Plus LargeCap Portfolio - Class S
Voya Index Plus MidCap Portfolio - Class S
Voya Index Plus SmallCap Portfolio - Class S
Voya International Index Portfolio - Class A
Voya International Index Portfolio - Class S
Voya Russell™ Large Cap Growth Index Portfolio - Class S
Voya Russell™ Large Cap Index Portfolio - Class A
Voya Russell™ Large Cap Index Portfolio - Class I
Voya Russell™ Large Cap Index Portfolio - Class S
Voya Russell™ Large Cap Value Index Portfolio - Class I
Voya Russell™ Large Cap Value Index Portfolio - Class S
Voya Russell™ Mid Cap Growth Index Portfolio - Class S
Voya Russell™ Mid Cap Index Portfolio - Class A
Voya Russell™ Mid Cap Index Portfolio - Class S
Voya Russell™ Small Cap Index Portfolio - Class A
Voya Russell™ Small Cap Index Portfolio - Class S
Voya Small Company Portfolio - Class A
Voya Small Company Portfolio - Class S
Voya U.S. Bond Index Portfolio - Class S
Voya SmallCap Opportunities Portfolio - Class A
Voya SmallCap Opportunities Portfolio - Class S
Allspring VT Omega Growth Fund - Class 2
Allspring VT Index Asset Allocation Fund - Class 2
Allspring VT Small Cap Growth Fund - Class 2
Subaccount	Statement of Operations	Statement of Changes in Net Assets
Invesco V.I. Core Plus Bond Fund - Series II	For the period from April 29, 2022 (commencement of operations) through December 31, 2022	For the period from April 29, 2022 (commencement of operations) through December 31, 2022
Subaccount	Statement of Operations	Statement of Changes in Net Assets
Voya Growth and Income Portfolio - Class S	For the period from January 1, 2022 through February 3, 2022 (termination of operations)	For the year ended December 31, 2021 and the period from January 1, 2022 through February 3, 2022 (termination of operations)
Invesco V.I. Core Bond Fund - Series II	For the period from January 1, 2022 through April 29, 2022 (termination of operations)	For the year ended December 31, 2021 and the period from January 1, 2022 through April 29, 2022 (termination of operations)
VY® T. Rowe Price International Stock Portfolio - Adviser Class	For the period from January 1, 2022 through July 8, 2022 (termination of operations)	For the year ended December 31, 2021 and the period from January 1, 2022 through July 8, 2022 (termination of operations)
VY® T. Rowe Price International Stock Portfolio - Service Class

	Invesco V.I. Balanced-Risk Allocation Fund - Series II Shares		American Funds Insurance Series® -- Washington Mutual Investors Fund - Class 4		American Funds Insurance Series® -- The Bond Fund of America - Class 4		American Funds Insurance Series Capital Income Builder Fund - Class 4		American Funds Insurance Series Global Growth Fund - Class 4
Assets
Investments in mutual funds
at fair value	$	969	$	4,732	$	1,536	$	1,915	$	1,627
Total assets		969		4,732		1,536		1,915		1,627
Net assets	$	969	$	4,732	$	1,536	$	1,915	$	1,627

Net assets
Accumulation units		969		4,732		1,536		1,915		1,627
Total net assets	$	969	$	4,732	$	1,536	$	1,915	$	1,627

Total number of mutual fund shares		121,540		383,511		166,425		174,720		55,140

Cost of mutual fund shares	$	1,250	$	5,183	$	1,914	$	1,855	$	1,823

	American Funds Insurance Series Growth Fund - Class 4		American Funds Insurance Series International Fund - Class 4		American Funds Insurance Series New World Fund - Class 4		BlackRock Equity Dividend V.I. Fund - Class III		BlackRock Global Allocation V.I. Fund - Class III
Assets
Investments in mutual funds
at fair value	$	7,737	$	1,317	$	960	$	4,383	$	388,721
Total assets		7,737		1,317		960		4,383		388,721
Net assets	$	7,737	$	1,317	$	960	$	4,383	$	388,721

Net assets
Accumulation units		7,737		1,317		960		4,383		388,721
Total net assets	$	7,737	$	1,317	$	960	$	4,383	$	388,721

Total number of mutual fund shares		105,075		87,880		43,973		433,073		32,750,277

Cost of mutual fund shares	$	9,013	$	1,715	$	1,142	$	5,022	$	474,800

	BlackRock High Yield V.I. Fund - Class III		BlackRock 60/40 Target Allocation ETF V.I. Fund - Class III		Columbia VP Seligman Global Technology Fund - Class 2		Columbia Small Cap Value Fund, Variable Series - Class 2		Columbia Small Company Growth Fund, Variable Series - Class 1
Assets
Investments in mutual funds
at fair value	$	1,596	$	262	$	2,693	$	45,059	$	46
Total assets		1,596		262		2,693		45,059		46
Net assets	$	1,596	$	262	$	2,693	$	45,059	$	46

Net assets
Accumulation units		1,596		262		2,693		45,059		46
Total net assets	$	1,596	$	262	$	2,693	$	45,059	$	46

Total number of mutual fund shares		246,140		22,566		153,432		3,970,236		5,030

Cost of mutual fund shares	$	1,793	$	302	$	3,330	$	56,127	$	74

	Fidelity® VIP FundsManager 60% Portfolio - Service Class 2		Fidelity® VIP FundsManager 85% Portfolio - Service Class 2		Franklin Small Cap Value VIP Fund - Class 2		Franklin Strategic Income VIP Fund - Class 2		Templeton Global Bond VIP Fund - Class 2
Assets
Investments in mutual funds
at fair value	$	1,098	$	63	$	6,586	$	617	$	2,475
Total assets		1,098		63		6,586		617		2,475
Net assets	$	1,098	$	63	$	6,586	$	617	$	2,475

Net assets
Accumulation units		1,098		63		6,586		617		2,475
Total net assets	$	1,098	$	63	$	6,586	$	617	$	2,475

Total number of mutual fund shares		126,995		6,057		525,669		70,678		198,316

Cost of mutual fund shares	$	1,334	$	88	$	7,751	$	742	$	3,074

Contents

Report of Independent Registered Public Accounting Firm			1

Audited Financial Statements

Statements of Assets and Liabilities			5
Statements of Operations			41
Statements of Changes in Net Assets			77
Notes to Financial Statements			122

	Delaware VIP Real Estate Securities - Class II		Delaware Ivy VIP Asset Strategy - Class II		Delaware Ivy VIP Balanced - Class II		Delaware Ivy VIP Energy - Class II		Delaware Ivy VIP High Income - Class II
Assets
Investments in mutual funds
at fair value	$	103	$	258	$	477	$	2,285	$	1,083
Total assets		103		258		477		2,285		1,083
Net assets	$	103	$	258	$	477	$	2,285	$	1,083

Net assets
Accumulation units		103		258		477		2,285		1,083
Total net assets	$	103	$	258	$	477	$	2,285	$	1,083

Total number of mutual fund shares		16,366		32,863		101,678		450,623		384,155

Cost of mutual fund shares	$	124	$	284	$	675	$	1,440	$	1,325

	Delaware Ivy VIP International Core Equity - Class II		Delaware Ivy VIP Mid Cap Growth - Class II		Delaware Ivy VIP Science and Technology - Class II		Delaware Ivy VIP Small Cap Core - Class II		Delaware Ivy VIP Small Cap Growth - Class II
Assets
Investments in mutual funds
at fair value	$	62	$	302	$	758	$	165	$	498
Total assets		62		302		758		165		498
Net assets	$	62	$	302	$	758	$	165	$	498

Net assets
Accumulation units		62		302		758		165		498
Total net assets	$	62	$	302	$	758	$	165	$	498

Total number of mutual fund shares		4,402		31,942		43,434		14,848		82,476

Cost of mutual fund shares	$	78	$	359	$	1,098	$	179	$	687

	VY® BlackRock Inflation Protected Bond Portfolio - Service Class		VY® CBRE Global Real Estate Portfolio - Adviser Class		VY® CBRE Global Real Estate Portfolio - Service Class		VY® CBRE Global Real Estate Portfolio - Service 2 Class		VY® CBRE Real Estate Portfolio - Adviser Class
Assets
Investments in mutual funds
at fair value	$	127,101	$	141	$	35,535	$	543	$	451
Total assets		127,101		141		35,535		543		451
Net assets	$	127,101	$	141	$	35,535	$	543	$	451

Net assets
Accumulation units		127,101		141		35,535		543		451
Total net assets	$	127,101	$	141	$	35,535	$	543	$	451

Total number of mutual fund shares		14,045,244		15,435		3,792,660		57,368		18,094

Cost of mutual fund shares	$	138,748	$	165	$	40,966	$	599	$	561

	VY® CBRE Real Estate Portfolio - Service Class		VY® CBRE Real Estate Portfolio - Service 2 Class		VY® Invesco Growth and Income Portfolio - Adviser Class		VY® Invesco Growth and Income Portfolio - Service Class		VY® Invesco Growth and Income Portfolio - Service 2 Class
Assets
Investments in mutual funds
at fair value	$	70,436	$	6,241	$	884	$	229,934	$	19,116
Total assets		70,436		6,241		884		229,934		19,116
Net assets	$	70,436	$	6,241	$	884	$	229,934	$	19,116

Net assets
Accumulation units		70,436		6,241		884		229,934		19,116
Total net assets	$	70,436	$	6,241	$	884	$	229,934	$	19,116

Total number of mutual fund shares		2,620,554		233,746		42,621		10,760,352		906,022

Cost of mutual fund shares	$	79,090	$	7,128	$	835	$	244,307	$	19,906

	Voya Global Bond Portfolio - Advisor		Voya Global Bond Portfolio - Service Class		Voya International High Dividend Low Volatility Portfolio - Adviser Class		Voya International High Dividend Low Volatility Portfolio - Service Class		Voya Solution 2025 Portfolio - Adviser Class
Assets
Investments in mutual funds
at fair value	$	346	$	2,067	$	718	$	194,985	$	516
Total assets		346		2,067		718		194,985		516
Net assets	$	346	$	2,067	$	718	$	194,985	$	516

Net assets
Accumulation units		346		2,067		718		194,985		516
Total net assets	$	346	$	2,067	$	718	$	194,985	$	516

Total number of mutual fund shares		43,025		252,737		80,184		21,666,378		62,198

Cost of mutual fund shares	$	456	$	2,714	$	796	$	233,954	$	702

	Invesco V.I. Discovery Mid Cap Growth Fund - Series II			Invesco Oppenheimer V.I. International Growth Fund - Series II			PIMCO All Asset Portfolio - Admin. Class			PIMCO Low Duration Portfolio - Administrative Class			PIMCO Real Return Portfolio - Administrative Class
Net investment income (loss)
Investment Income:
Dividends	$	—			—		$	21		$	36		$	251
Expenses:
Mortality and expense risk charges		4			6			3			17			36
Total expenses		4			6			3			17			36
Net investment income (loss)		(4	)		(6	)		18			19			215

Realized and unrealized gain (loss)
on investments
Net realized gain (loss) on investments		(56	)		(37	)		(21	)		(9	)		(25	)
Capital gains distributions		134			137			20			—			—
Total realized gain (loss) on investments
and capital gains distributions		78			100			(1	)		(9	)		(25	)
Net unrealized appreciation
(depreciation) of investments		(257	)		(402	)		(60	)		(162	)		(690	)
Net realized and unrealized gain (loss)
on investments		(179	)		(302	)		(61	)		(171	)		(715	)
Net increase (decrease) in net assets
resulting from operations	$	(183	)	$	(308	)	$	(43	)	$	(152	)	$	(500	)

AIM Variable Insurance Funds:		Fidelity® Variable Insurance Products II:
	Invesco V.I. Balanced-Risk Allocation Fund - Series II Shares		Fidelity® VIP Disciplined Small Cap Portfolio - Service Class 2
American Funds Insurance Series®:		Fidelity® Variable Insurance Products V:
	Capital Income Builder Fund - Class 4		Fidelity® VIP FundsManager 20% Portfolio - Service Class 2
	Global Growth Fund - Class 4		Fidelity® VIP FundsManager 60% Portfolio - Service Class 2
	Growth Fund - Class 4		Fidelity® VIP FundsManager 85% Portfolio - Service Class 2
	International Fund - Class 4	Franklin Templeton Variable Insurance Products Trust:
	New World Fund - Class 4		Franklin Small Cap Value VIP Fund - Class 2
	The Bond Fund of America - Class 4		Franklin Strategic Income VIP Fund - Class 2
	Washington Mutual Investors - Class 4		Templeton Global Bond VIP Fund - Class 2
BlackRock Variable Series Funds, Inc.:		Delaware Equity Funds:
	BlackRock Equity Dividend V.I. Fund - Class III		Delaware VIP Real Estate Securities - Class II
	BlackRock Global Allocation V.I. Fund - Class III	Delaware Ivy Funds Variable Insurance Portfolios:
	BlackRock High Yield V.I. Fund - Class III		Delaware Ivy VIP Asset Strategy
	BlackRock 60/40 Target Allocation ETF V.I. Fund - Class III		Delaware Ivy VIP Balanced
Columbia Funds Series Trust II:			Delaware Ivy VIP Energy
	Columbia VP Seligman Global Technology Fund - Class 2		Delaware Ivy VIP High Income
Columbia Funds Variable Insurance Trust:			Delaware Ivy VIP International Core Equity
	Columbia Small Cap Value Fund, Variable Series - Class 2		Delaware Ivy VIP Mid Cap Growth
	Columbia Small Company Growth Fund, Variable Series - Class 1		Delaware Ivy VIP Science and Technology
Columbia Funds Variable Series Trust II:			Delaware Ivy VIP Small Cap Core - Class II
	Columbia VP Large Cap Growth Fund - Class 1		Delaware Ivy VIP Small Cap Growth
Deutsche DWS Variable Series I:		Janus Aspen Series:
	DWS Core Equity VIP - Class B		Janus Henderson Balanced Portfolio - Service Shares
Deutsche DWS Variable Series II:			Janus Henderson Enterprise Portfolio - Service Shares
	DWS Alternative Asset Allocation VIP - Class B		Janus Henderson Flexible Bond Portfolio - Service Shares
	DWS High Income VIP - Class B	Legg Mason Partners Equity Trust:
Eaton Vance Variable Trust:			ClearBridge Variable Aggressive Growth Portfolio II
	Eaton Vance VT Floating-Rate Income Fund - Initial Class	Legg Mason Partners Variable Equity Trust:
Federated Hermes Insurance Series			ClearBridge Variable Mid Cap Portfolio - Class II
	Federated Hermes High Income Bond Fund II - Service Shares	Legg Mason Partners Variable Income Trust:
	Federated Hermes Kaufmann Fund II - Service Shares		Western Asset Core Plus VIT Portfolio - Class I
Fidelity® Variable Insurance Products:		MFS® Series Trust VIII:
	Fidelity® VIP Strategic Income Portfolio - Service Class 2		MFS VIT II Income Portfolio - Service Class

MFS® Variable Insurance Trust:		Voya Investors Trust:
	MFS VIT Research Series Portfolio - Service Class		Voya Balanced Income Portfolio - Adviser Class
MFS® Variable Insurance Trust II:			Voya Balanced Income Portfolio - Service Class
	MFS VIT International Intrinsic Value Portfolio - Service Class		Voya Balanced Income Portfolio - Service 2 Class
	MFS VIT Value Series - Service Class		Voya Global Perspectives® Portfolio - Class A
MFS® Variable Insurance Trust III:			Voya Government Liquid Assets Portfolio - Class I
	MFS VIT III Global Real Estate Portfolio - Service Class		Voya Government Liquid Assets Portfolio - Service Class
Invesco Main Street Fund®:			Voya Government Liquid Assets Portfolio - Service 2 Class
	Invesco V.I. Main Street Fund - Series II		Voya High Yield Portfolio - Adviser Class
	Invesco V.I. Main Street Small Cap Fund - Series II		Voya High Yield Portfolio - Service Class
Invesco Variable Insurance Fund:			Voya Large Cap Growth Portfolio - Adviser Class
	Invesco V.I. Core Plus Bond Fund - Series II		Voya Large Cap Growth Portfolio - Institutional Class
	Invesco V.I. Discovery Mid Cap Growth Fund - Series II		Voya Large Cap Growth Portfolio - Service Class
	Invesco Oppenheimer V.I. International Growth Fund - Series II		Voya Large Cap Growth Portfolio - Service 2 Class
PIMCO Variable Insurance Trust:			Voya Limited Maturity Bond Portfolio - Service Class
	PIMCO All Asset Portfolio - Administrative Class		Voya Retirement Conservative Portfolio - Adviser Class
	PIMCO Low Duration Portfolio - Administrative Class		Voya Retirement Growth Portfolio - Adviser Class
	PIMCO Real Return Portfolio - Administrative Class		Voya Retirement Moderate Growth Portfolio - Adviser Class
	PIMCO Short-Term Portfolio - Administrative Class		Voya Retirement Moderate Portfolio - Adviser Class
	PIMCO Total Return Portfolio - Administrative Class		Voya U.S. Stock Index Portfolio - Service Class
ProFunds:			VY® BlackRock Inflation Protected Bond Portfolio - Adviser Class
	ProFund VP Europe 30		VY® BlackRock Inflation Protected Bond Portfolio - Service Class
	ProFund VP Rising Rates Opportunity		VY® CBRE Global Real Estate Portfolio - Adviser Class
Putnam Variable Trust:			VY® CBRE Global Real Estate Portfolio - Service Class
	Putnam VT Income Fund - Class 1B		VY® CBRE Global Real Estate Portfolio - Service 2 Class
	Putnam VT International Equity Fund - Class 1B		VY® CBRE Real Estate Portfolio - Adviser Class
	Putnam VT International Value Fund - Class 1B		VY® CBRE Real Estate Portfolio - Service Class
	Putnam VT Mortgage Securities Fund - Class 1B		VY® CBRE Real Estate Portfolio - Service 2 Class
	Putnam VT Multi-Cap Core Fund - Class IB Shares		VY® Invesco Growth and Income Portfolio - Adviser Class
	Putnam VT Small Cap Value Fund - Class 1B		VY® Invesco Growth and Income Portfolio - Service Class
T. Rowe Price Equity Series, Inc.:			VY® Invesco Growth and Income Portfolio - Service 2 Class
	T. Rowe Price Blue Chip Growth Portfolio - II		VY® JPMorgan Emerging Markets Equity Portfolio - Adviser Class
	T. Rowe Price Health Sciences Portfolio - II		VY® JPMorgan Emerging Markets Equity Portfolio - Service Class
Variable Insurance Trust:			VY® JPMorgan Emerging Markets Equity Portfolio - Service 2 Class
	MFS VIT Utilities Series Portfolio - Service Class		VY® JPMorgan Small Cap Core Equity Portfolio - Adviser Class
Voya Balanced Portfolio, Inc.:			VY® Morgan Stanley Global Franchise Portfolio - Adviser Class
	Voya Balanced Portfolio - Class S		VY® Morgan Stanley Global Franchise Portfolio - Service Class
Voya Intermediate Bond Portfolio:			VY® Morgan Stanley Global Franchise Portfolio - Service 2 Class
	Voya Intermediate Bond Portfolio - Class A		VY® T. Rowe Price Capital Appreciation Portfolio - Adviser Class
	Voya Intermediate Bond Portfolio - Class S		VY® T. Rowe Price Capital Appreciation Portfolio - Service Class

Voya Investors Trust (continued):		Voya Variable Portfolios, Inc.:
	VY® T. Rowe Price Capital Appreciation Portfolio - Service 2 Class		Voya Global High Dividend Low Volatility Portfolio - Class A
Voya Partners, Inc.:			Voya Global High Dividend Low Volatility Portfolio - Class S
	Voya Global Bond Portfolio - Adviser Class		Voya Index Plus LargeCap Portfolio - Class S
	Voya Global Bond Portfolio - Service Class		Voya Index Plus MidCap Portfolio - Class S
	Voya International High Dividend Low Volatility Portfolio - Adviser Class		Voya Index Plus SmallCap Portfolio - Class S
	Voya International High Dividend Low Volatility Portfolio - Service Class		Voya International Index Portfolio - Class A
	Voya Solution 2025 Portfolio - Adviser Class		Voya International Index Portfolio - Class S
	Voya Solution 2025 Portfolio - Service Class		Voya Russell™ Large Cap Growth Index Portfolio - Class S
	Voya Solution 2035 Portfolio - Adviser Class		Voya Russell™ Large Cap Index Portfolio - Class A
	Voya Solution 2035 Portfolio - Service Class		Voya Russell™ Large Cap Index Portfolio - Class I
	Voya Solution 2045 Portfolio - Adviser Class		Voya Russell™ Large Cap Index Portfolio - Class S
	Voya Solution 2045 Portfolio - Service Class		Voya Russell™ Large Cap Value Index Portfolio - Class I
	Voya Solution 2055 Portfolio - Adviser Class		Voya Russell™ Large Cap Value Index Portfolio - Class S
	Voya Solution Income Portfolio - Adviser Class		Voya Russell™ Mid Cap Growth Index Portfolio - Class S
	Voya Solution Income Portfolio - Service Class		Voya Russell™ Mid Cap Index Portfolio - Class A
	Voya Solution Moderately Aggressive Portfolio - Service Class		Voya Russell™ Mid Cap Index Portfolio - Class S
	VY® American Century Small-Mid Cap Value Portfolio - Adviser Class		Voya Russell™ Small Cap Index Portfolio - Class A
	VY® American Century Small-Mid Cap Value Portfolio - Service Class		Voya Russell™ Small Cap Index Portfolio - Class S
	VY® Baron Growth Portfolio - Adviser Class		Voya Small Company Portfolio - Class A
	VY® Columbia Contrarian Core Portfolio - Adviser Class		Voya Small Company Portfolio - Class S
	VY® Columbia Small Cap Value II Portfolio - Adviser Class		Voya U.S. Bond Index Portfolio - Class S
	VY® Columbia Small Cap Value II Portfolio - Service Class	Voya Variable Products Trust:
	VY® Invesco Equity and Income Portfolio - Adviser Class		Voya SmallCap Opportunities Portfolio - Class A
	VY® Invesco Equity and Income Portfolio - Initial Class		Voya SmallCap Opportunities Portfolio - Class S
	VY® Invesco Equity and Income Portfolio - Service Class	Allspring Funds Trust:
	VY® Invesco Equity and Income Portfolio - Service 2 Class		Allspring VT Omega Growth Fund - Class 2
	VY® JPMorgan Mid Cap Value Portfolio - Adviser Class	Allspring Variable Trust:
	VY® JPMorgan Mid Cap Value Portfolio - Service Class		Allspring VT Index Asset Allocation Fund - Class 2
	VY® Invesco Global Portfolio - Adviser Class		Allspring VT Small Cap Growth Fund - Class 2
	VY® Invesco Global Portfolio - Initial Class
	VY® Invesco Global Portfolio - Service Class
	VY® T. Rowe Price Diversified Mid Cap Growth Portfolio - Adviser Class
	VY® T. Rowe Price Diversified Mid Cap Growth Portfolio - Service Class
	VY® T. Rowe Price Growth Equity Portfolio - Adviser Class
Voya Strategic Allocation Portfolios, Inc.:
	Voya Strategic Allocation Conservative Portfolio - Class S
	Voya Strategic Allocation Growth Portfolio - Class S
	Voya Strategic Allocation Moderate Portfolio - Class S

Current Name		Former Name
American Funds Insurance Series®:		American Funds Insurance Series®:
	The Bond Fund of America - Class 4		Bond Fund - Class 4
	Washington Mutual Investors - Class 4		Blue Chip Income and Growth Fund

Delaware Equity Funds:		Delaware Ivy Equity Funds:
	Delaware VIP Real Estate Securities - Class II		Delaware Ivy VIP Securian Real Estate Securities - Class II

Voya Investors Trust:		Voya Investors Trust:
	VY® CBRE Global Real Estate Portfolio - Adviser Class		VY® Clarion Global Real Estate Portfolio - Adviser Class
	VY® CBRE Global Real Estate Portfolio - Service Class		VY® Clarion Global Real Estate Portfolio - Service Class
	VY® CBRE Global Real Estate Portfolio - Service 2 Class		VY® Clarion Global Real Estate Portfolio - Service 2 Class
	VY® CBRE Real Estate Portfolio - Adviser Class		VY® Clarion Real Estate Portfolio - Adviser Class
	VY® CBRE Real Estate Portfolio - Service Class		VY® Clarion Real Estate Portfolio - Service Class
	VY® CBRE Real Estate Portfolio - Service 2 Class		VY® Clarion Real Estate Portfolio - Service 2 Class

Invesco Variable Insurance Fund:
	Invesco V.I. Core Plus Bond Fund - Serries II

	Purchases		Sales
	(Dollars in thousands)
AIM Variable Insurance Funds:
Invesco V.I. Balanced-Risk Allocation Fund - Series II Shares	$	240	$	34
American Funds Insurance Series®:
Washington Mutual Investors Fund - Class 4		1,266		494
The Bond Fund of America - Class 4		91		715
Capital Income Builder Fund - Class 4		239		249
Global Growth Fund - Class 4		418		623
Growth Fund - Class 4		1,504		902
International Fund - Class 4		250		78
New World Fund - Class 4		125		261
BlackRock Variable Series Funds, Inc.:
BlackRock Equity Dividend V.I. Fund - Class III		836		723
BlackRock Global Allocation V.I. Fund - Class III		10,151		68,124
BlackRock High Yield V.I. Fund - Class III		106		705
BlackRock 60/40 Target Allocation ETF V.I. Fund - Class III		6		125
Columbia Funds Series Trust II:
Columbia VP Seligman Global Technology Fund - Class 2		925		632
Columbia Funds Variable Insurance Trust:
Columbia Small Cap Value Fund, Variable Series - Class 2		19,239		8,503
Columbia Small Company Growth Fund, Variable Series - Class 1		22		3
Columbia Funds Variable Series Trust II:
Columbia VP Large Cap Growth Fund - Class 1		—		11
Deutsche Variable Series I:
DWS Core Equity VIP - Class B		166		151
Deutsche Variable Series II:
DWS Alternative Asset Allocation VIP - Class B		49		95
DWS High Income VIP - Class B		6		10
Eaton Vance Variable Trust:
Eaton Vance VT Floating-Rate Income Fund - Initial Class		1,835		1,600
Federated Hermes Insurance Series
Federated Hermes High Income Bond Fund II - Service Shares		72		570
Federated Hermes Kaufmann Fund II - Service Shares		37		195
Fidelity® Variable Insurance Products:
Fidelity® VIP Strategic Income Portfolio - Service Class 2		175		320
Fidelity® Variable Insurance Products II:
Fidelity® VIP Disciplined Small Cap Portfolio - Service Class 2		262		189
Fidelity® Variable Insurance Products V:
Fidelity® VIP FundsManager 20% Portfolio - Service Class 2		87		35
Fidelity® VIP FundsManager 60% Portfolio - Service Class 2		363		118
Fidelity® VIP FundsManager 85% Portfolio - Service Class 2		15		1

	Year ended December 31,
	2022							2021
	Units		Units		Net Increase			Units		Units		Net Increase
	Issued		Redeemed		(Decrease)			Issued		Redeemed		(Decrease)
AIM Variable Insurance Funds:
Invesco V.I. Balanced-Risk Allocation Fund - Series II Shares		9,622		1,867		7,755			87,439		18,729		68,710
American Funds Insurance Series®:
Washington Mutual Investors Fund - Class 4		3,479		27,063		(23,584	)		28,995		59,011		(30,016	)
The Bond Fund of America - Class 4		1,954		66,844		(64,890	)		63,309		207,656		(144,347	)
Capital Income Builder Fund - Class 4		14,057		18,180		(4,123	)		36,749		40,263		(3,514	)
Global Growth Fund - Class 4		8,659		33,567		(24,908	)		23,822		18,299		5,523
Growth Fund - Class 4		7,912		33,130		(25,218	)		40,727		57,369		(16,642	)
International Fund - Class 4		2,599		6,170		(3,571	)		12,147		11,660		487
New World Fund - Class 4		575		18,321		(17,746	)		17,220		11,267		5,953
BlackRock Variable Series Funds, Inc.:
BlackRock Equity Dividend V.I. Fund - Class III		14,624		38,867		(24,243	)		31,408		33,612		(2,204	)
BlackRock Global Allocation V.I. Fund - Class III		242,015		4,073,941		(3,831,926	)		1,916,047		5,576,084		(3,660,037	)
BlackRock High Yield V.I. Fund - Class III		1,050		56,347		(55,297	)		21,799		17,135		4,664
BlackRock 60/40 Target Allocation ETF V.I. Fund - Class III		53		8,323		(8,270	)		14,832		2,025		12,807
Columbia Funds Series Trust II:
Columbia VP Seligman Global Technology Fund - Class 2		3,654		23,282		(19,628	)		21,131		14,007		7,124
Columbia Funds Variable Insurance Trust:
Columbia Small Cap Value Fund, Variable Series - Class 2		4,845		184,212		(179,367	)		76,554		339,632		(263,078	)
Columbia Small Company Growth Fund, Variable Series - Class 1		—		49		(49	)		—		35		(35	)
Columbia Funds Variable Series Trust II:
Columbia VP Large Cap Growth Fund - Class 1		5		382		(377	)		—		129		(129	)
Deutsche Variable Series I:
DWS Core Equity VIP - Class B		320		7,477		(7,157	)		2,168		18,043		(15,875	)
Deutsche Variable Series II:
DWS Alternative Asset Allocation VIP - Class B		—		7,230		(7,230	)		8		6,012		(6,004	)
DWS High Income VIP - Class B		—		714		(714	)		881		309		572

		Fund						Investment
		Inception	Units	Unit Fair Value			Net Assets	Income	Expense Ratio^C			Total Return^D
		Date^A	(000's)	(lowest to highest)			(000's)	Ratio^B	(lowest to highest)			(lowest to highest)
Invesco V.I. Balanced-Risk Allocation Fund - Series II Shares
	2022		85	$11.99	to	$11.38	969	7.72%	0.60%	to	1.15%	(15.11)%	to	(15.57)%
	2021		77	$14.11	to	$13.47	1,041	0.52%	0.60%	to	1.15%	8.62%	to	8.02%
	2020		8	$12.99	to	$12.47	106	7.81%	0.60%	to	1.15%	9.34%	to	8.72%
	2019		11	$11.88	to	$11.47	124	—%	0.60%	to	1.15%	14.23%	to	13.56%
	2018		12	$10.96	to	$11.22	135	3.88%	0.60%	to	1.15%		9.14%
Washington Mutual Investors Fund - Class 4
	2022		295	$17.15	to	$15.76	4,732	1.63%	0.60%	to	1.15%	(9.23)%	to	(9.73)%
	2021		318	$18.90	to	$17.46	5,653	1.27%	0.60%	to	1.15%	26.76%	to	26.06%
	2020		348	$14.91	to	$13.85	4,902	1.47%	0.60%	to	1.15%	7.81%	to	7.20%
	2019		343	$13.83	to	$12.92	4,508	1.94%	0.60%	to	1.15%	20.37%	to	19.63%
	2018		369	$10.80	to	$11.49	4,039	1.97%	0.60%	to	1.15%	(9.53)%	to	(9.92)%
The Bond Fund of America - Class 4
	2022		152	$10.24	to	$9.79	1,536	2.27%	0.60%	to	1.15%	(12.71)%	to	(13.19)%
	2021		217	$11.80	to	$11.35	2,529	0.89%	0.60%	to	1.15%	(1.17)%	to	(1.73)%
	2020		362	$11.94	to	$11.55	4,235	1.73%	0.60%	to	1.15%	8.64%	to	8.15%
	2019		206	$10.99	to	$10.68	2,233	2.78%	0.60%	to	1.15%	8.49%	to	7.77%
	2018		157	$9.91	to	$10.13	1,578	2.11%	0.60%	to	1.15%	(1.46)%	to	(1.98)%
Capital Income Builder Fund - Class 4
	2022		149	$12.87	to	$12.87	1,915	2.51%	0.60%	to	1.15%	(7.93)%	to	(8.43)%
	2021		153	$13.98	to	$14.05	2,144	2.75%	0.60%	to	1.15%	14.03%	to	13.31%
	2020		156	$12.26	to	$12.40	1,930	2.45%	0.60%	to	1.15%	3.46%	to	2.99%
	2019		186	$11.85	to	$12.04	2,226	2.63%	0.60%	to	1.15%	16.98%	to	16.22%
	2018		228	$10.13	to	$10.36	2,341	2.75%	0.60%	to	1.15%	(7.83)%	to	(8.32)%